UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number

811-01944

Principal Variable Contracts Funds, Inc.

(Exact name of registrant as specified in charter)

655 9th Street, Des Moines, IA 50309
(Address of principal executive offices)	(Zip code)

Principal Management Corporation, 655 9^th Street, Des Moines, IA 50309 (Name and address of agent for service)

Registrant’s telephone number, including area code:		515-247-6783
Date of fiscal year end:	December 31, 2015
Date of reporting period:	June 30, 2015

ITEM 1 – REPORT TO STOCKHOLDERS

Principal Variable Contracts Funds, Inc.

Semiannual Report June 30, 2015

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Table of Contents

Financial Statements	1
Notes to Financial Statements	43
Schedules of Investments	73
Financial Highlights (Includes performance information)	228
Shareholder Expense Example	256
Supplemental Information	261

Not FDIC or NCUA insured

May lose value Not a deposit No bank or credit union guarantee

Not insured by any Federal government agency

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
				Bond &
				Mortgage
		Balanced		Securities			Bond Market
Amounts in thousands, except per share amounts		Account		Account			Index Account
Investment in securities--at cost	$	45,409	$	339,312		$	2,089,072
Assets
Investment in securities--at value	$	49,206	$	336,908		$	2,086,952
Cash		671		–			324
Deposits with counterparty		5		–			196
Receivables:
Dividends and interest		158		2,050			10,640
Fund shares sold		2		976			420
Investment securities sold		958		11,872			56,381
Total Assets		51,000		351,806			2,154,913
Liabilities
Accrued management and investment advisory fees		24		114			386
Accrued directors' expenses		1		2			7
Accrued other expenses		7		8			13
Cash overdraft		–		49			–
Payables:
Fund shares redeemed		16		258			3,811
Investment securities purchased		2,488		38,830			251,812
Short sales (proceeds received $0, $0 and $323)		–		–			323
Variation margin on financial derivative instruments		–		69			–
Total Liabilities		2,536		39,330			256,352
Net Assets Applicable to Outstanding Shares	$	48,464	$	312,476		$	1,898,561
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	38,152	$	335,406		$	1,859,035
Accumulated undistributed (overdistributed) net investment income (loss)		1,254		13,214			43,624
Accumulated undistributed (overdistributed) net realized gain (loss)		5,262		(33,468	)		(1,978	)
Net unrealized appreciation (depreciation) of investments		3,796		(2,676	)		(2,120	)
Total Net Assets	$	48,464	$	312,476		$	1,898,561
Capital Stock (par value: $.01 per share):
Shares authorized		100,000		450,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	48,464	$	312,466		$	1,898,561
Shares issued and outstanding		2,469		27,211			184,102
Net Asset Value per share	$	19.63	$	11.48		$	10.31
Class 2: Net Assets		N/A	$	10			N/A
Shares issued and outstanding				1
Net Asset Value per share			$	11.48

See accompanying notes.

1

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
				Diversified
				Balanced
		Diversified		Managed
		Balanced		Volatility		Diversified
Amounts in thousands, except per share amounts		Account		Account		Growth Account
Investment in affiliated Accounts--at cost	$	876,955	$	121,257	$	2,623,060
Assets
Investment in affiliated Accounts--at value	$	1,040,606	$	122,695	$	3,099,509
Receivables:
Fund shares sold		–		729		–
Investment securities sold		1,594		–		6,772
Total Assets		1,042,200		123,424		3,106,281
Liabilities
Accrued management and investment advisory fees		43		5		129
Accrued distribution fees		216		25		642
Accrued directors' expenses		4		1		10
Accrued other expenses		4		4		4
Payables:
Fund shares redeemed		1,594		51		6,772
Investment securities purchased		–		678		–
Total Liabilities		1,861		764		7,557
Net Assets Applicable to Outstanding Shares	$	1,040,339	$	122,660	$	3,098,724
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	855,920	$	119,484	$	2,555,422
Accumulated undistributed (overdistributed) net investment income (loss)		8,795		851		27,398
Accumulated undistributed (overdistributed) net realized gain (loss)		11,973		887		39,455
Net unrealized appreciation (depreciation) of investments		163,651		1,438		476,449
Total Net Assets	$	1,040,339	$	122,660	$	3,098,724
Capital Stock (par value: $.01 per share):
Shares authorized		250,000		200,000		300,000
Net Asset Value Per Share:
Class 2: Net Assets	$	1,040,339	$	122,660	$	3,098,724
Shares issued and outstanding		71,652		11,194		198,656
Net Asset Value per share	$	14.52	$	10.96	$	15.60

See accompanying notes.

2

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
	Diversified
	Growth Managed					Diversified
	Volatility			Diversified		International
Amounts in thousands, except per share amounts	Account			Income Account		Account
Investment in securities--at cost	$	–	$	–	$	336,489
Investment in affiliated Accounts--at cost	$	211,475	$	166,828	$	–
Foreign currency--at cost	$	–	$	–	$	35
Assets
Investment in securities--at value	$	–	$	–	$	397,252
Investment in affiliated Accounts--at value		214,444		179,271		–
Foreign currency--at value		–		–		35
Receivables:
Dividends and interest		–		–		1,953
Fund shares sold		1		–		57
Investment securities sold		709		609		546
Total Assets		215,154		179,880		399,843
Liabilities
Accrued management and investment advisory fees		9		7		278
Accrued distribution fees		44		37		–
Accrued directors' expenses		1		2		3
Accrued other expenses		4		4		24
Cash overdraft		–		–		33
Payables:
Deferred foreign tax		–		–		26
Fund shares redeemed		710		609		324
Investment securities purchased		–		–		408
Total Liabilities		768		659		1,096
Net Assets Applicable to Outstanding Shares	$	214,386	$	179,221	$	398,747
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	207,428	$	164,310	$	423,608
Accumulated undistributed (overdistributed) net investment income (loss)		1,945		1,180		11,322
Accumulated undistributed (overdistributed) net realized gain (loss)		2,044		1,288		(96,817	)
Net unrealized appreciation (depreciation) of investments		2,969		12,443		60,737
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–		–		(103	)
Total Net Assets	$	214,386	$	179,221	$	398,747
Capital Stock (par value: $.01 per share):
Shares authorized		200,000		50,000		300,000
Net Asset Value Per Share:
Class 1: Net Assets		N/A		N/A	$	397,313
Shares issued and outstanding						26,635
Net Asset Value per share					$	14.92
Class 2: Net Assets	$	214,386	$	179,221	$	1,434
Shares issued and outstanding		19,289		14,823		96
Net Asset Value per share	$	11.11	$	12.09	$	15.01

See accompanying notes.

3

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
					Government &
	Equity				High Quality
Amounts in thousands, except per share amounts	Income Account				Bond Account			Income Account
Investment in securities--at cost	$	371,837		$	301,718		$	264,719
Assets
Investment in securities--at value	$	587,857		$	302,676		$	276,163
Cash		6			–			–
Receivables:
Dividends and interest		1,533			1,474			2,418
Fund shares sold		555			163			–
Investment securities sold		2,223			3,089			–
Total Assets		592,174			307,402			278,581
Liabilities
Accrued management and investment advisory fees		240			127			113
Accrued distribution fees		5			–			1
Accrued directors' expenses		4			2			2
Accrued other expenses		5			5			4
Cash overdraft		–			2			153
Payables:
Fund shares redeemed		234			217			200
Investment securities purchased		1,066			3,073			2,663
Total Liabilities		1,554			3,426			3,136
Net Assets Applicable to Outstanding Shares	$	590,620		$	303,976		$	275,445
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	335,710		$	311,184		$	251,012
Accumulated undistributed (overdistributed) net investment income (loss)		26,892			13,969			15,217
Accumulated undistributed (overdistributed) net realized gain (loss)		11,999			(22,135	)		(2,228	)
Net unrealized appreciation (depreciation) of investments		216,020			958			11,444
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		(1	)		–			–
Total Net Assets	$	590,620		$	303,976		$	275,445
Capital Stock (par value: $.01 per share):
Shares authorized		200,000			200,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	565,439		$	302,172		$	272,759
Shares issued and outstanding		24,526			28,818			25,149
Net Asset Value per share	$	23.05		$	10.49		$	10.85
Class 2: Net Assets	$	25,181		$	1,804		$	2,686
Shares issued and outstanding		1,101			172			249
Net Asset Value per share	$	22.87		$	10.49		$	10.79

See accompanying notes.

4

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
	International							LargeCap
	Emerging				LargeCap			Growth
Amounts in thousands, except per share amounts	Markets Account				Growth Account			Account I
Investment in securities--at cost	$	98,009		$	95,223		$	181,147
Foreign currency--at cost	$	14		$	–		$	–
Assets
Investment in securities--at value	$	104,027		$	125,405		$	245,511
Foreign currency--at value		14			–			–
Deposits with counterparty		–			–			430
Receivables:
Dividends and interest		620			23			111
Expense reimbursement from Manager		–			–			3
Fund shares sold		19			8			182
Interfund lending		–			–			120
Investment securities sold		–			–			7,437
Variation margin on financial derivative instruments		–			–			22
Total Assets		104,680			125,436			253,816
Liabilities
Accrued management and investment advisory fees		108			70			156
Accrued custodian fees		30			–			–
Accrued directors' expenses		2			2			2
Accrued professional fees		4			–			–
Accrued other expenses		–			4			6
Payables:
Deferred foreign tax		27			–			–
Fund shares redeemed		57			86			103
Investment securities purchased		15			–			7,798
Variation margin on financial derivative instruments		–			–			8
Total Liabilities		243			162			8,073
Net Assets Applicable to Outstanding Shares	$	104,437		$	125,274		$	245,743
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	113,898		$	108,416		$	132,344
Accumulated undistributed (overdistributed) net investment income (loss)		2,203			281			523
Accumulated undistributed (overdistributed) net realized gain (loss)		(17,655	)		(13,605	)		48,656
Net unrealized appreciation (depreciation) of investments		5,991			30,182			64,220
Total Net Assets	$	104,437		$	125,274		$	245,743
Capital Stock (par value: $.01 per share):
Shares authorized		200,000			300,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	104,423		$	124,283		$	245,733
Shares issued and outstanding		6,627			4,767			8,142
Net Asset Value per share	$	15.76		$	26.07		$	30.18
Class 2: Net Assets	$	14		$	991		$	10
Shares issued and outstanding		1			38			–(a)
Net Asset Value per share	$	15.75		$	25.96		$	30.17
(a) Less than 500 shares.

See accompanying notes.

5

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
				LargeCap
				S&P 500
		LargeCap		Managed
		S&P 500		Volatility			LargeCap
Amounts in thousands, except per share amounts		Index Account		Index Account			Value Account
Investment in securities--at cost	$	1,435,268	$	133,615		$	144,671
Assets
Investment in securities--at value	$	1,973,581	$	138,867		$	161,264
Cash		155		10			–
Receivables:
Dividends and interest		2,207		141			193
Fund shares sold		123		237			4
Investment securities sold		316		20			2,493
Variation margin on financial derivative instruments		99		12			–
Total Assets		1,976,481		139,287			163,954
Liabilities
Accrued management and investment advisory fees		413		51			82
Accrued directors' expenses		7		1			2
Accrued other expenses		6		7			5
Payables:
Fund shares redeemed		4,123		319			108
Investment securities purchased		1,615		234			1,923
Options and swaptions contracts written (premiums received $0, $527 and $0)		–		748			–
Variation margin on financial derivative instruments		26		–			–
Total Liabilities		6,190		1,360			2,120
Net Assets Applicable to Outstanding Shares	$	1,970,291	$	137,927		$	161,834
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,360,856	$	134,037		$	118,696
Accumulated undistributed (overdistributed) net investment income (loss)		46,455		788			3,810
Accumulated undistributed (overdistributed) net realized gain (loss)		25,293		(1,823	)		22,735
Net unrealized appreciation (depreciation) of investments		537,687		4,925			16,593
Total Net Assets	$	1,970,291	$	137,927		$	161,834
Capital Stock (par value: $.01 per share):
Shares authorized		300,000		100,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	1,970,281	$	137,927		$	161,824
Shares issued and outstanding		133,175		12,213			4,789
Net Asset Value per share	$	14.79	$	11.29		$	33.79
Class 2: Net Assets	$	10		N/A		$	10
Shares issued and outstanding		1					–(a)
Net Asset Value per share	$	14.79				$	33.78
(a) Less than 500 shares.

See accompanying notes.

6

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
							Principal
							Capital
				Money			Appreciation
Amounts in thousands, except per share amounts	MidCap Account			Market Account			Account
Investment in securities--at cost	$	449,169	$	271,058		$	142,076
Assets
Investment in securities--at value	$	687,632	$	271,058		$	175,489
Cash		208		20			–
Receivables:
Dividends and interest		324		10			202
Expense reimbursement from Manager		–		59			–
Expense reimbursement from Distributor		–		1			–
Fund shares sold		446		567			3
Investment securities sold		3,004		–			651
Total Assets		691,614		271,715			176,345
Liabilities
Accrued management and investment advisory fees		303		100			92
Accrued distribution fees		3		–			2
Accrued directors' expenses		3		2			2
Accrued other expenses		5		4			9
Payables:
Fund shares redeemed		331		103			414
Investment securities purchased		481		–			571
Total Liabilities		1,126		209			1,090
Net Assets Applicable to Outstanding Shares	$	690,488	$	271,506		$	175,255
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	317,070	$	271,514		$	135,602
Accumulated undistributed (overdistributed) net investment income (loss)		5,535		–			986
Accumulated undistributed (overdistributed) net realized gain (loss)		129,420		(8	)		5,254
Net unrealized appreciation (depreciation) of investments		238,463		–			33,413
Total Net Assets	$	690,488	$	271,506		$	175,255
Capital Stock (par value: $.01 per share):
Shares authorized		105,000		1,500,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	674,277	$	269,377		$	167,604
Shares issued and outstanding		10,559		269,385			7,308
Net Asset Value per share	$	63.86	$	1.00		$	22.93
Class 2: Net Assets	$	16,211	$	2,129		$	7,651
Shares issued and outstanding		255		2,129			337
Net Asset Value per share	$	63.51	$	1.00		$	22.70

See accompanying notes.

7

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
		Principal			Principal		Principal
		LifeTime 2010			LifeTime 2020		LifeTime 2030
Amounts in thousands, except per share amounts		Account			Account		Account
Investment in affiliated Accounts--at cost	$	42,755		$	193,297	$	109,992
Assets
Investment in affiliated Accounts--at value	$	45,749		$	205,287	$	118,730
Receivables:
Dividends and interest		22			104		45
Fund shares sold		18			48		111
Investment securities sold		39			1,063		–
Total Assets		45,828			206,502		118,886
Liabilities
Accrued management and investment advisory fees		1			5		3
Accrued directors' expenses		1			2		1
Accrued other expenses		4			4		4
Payables:
Fund shares redeemed		57			1,111		96
Investment securities purchased		22			104		61
Total Liabilities		85			1,226		165
Net Assets Applicable to Outstanding Shares	$	45,743		$	205,276	$	118,721
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	42,163		$	175,532	$	100,324
Accumulated undistributed (overdistributed) net investment income (loss)		1,077			5,646		3,235
Accumulated undistributed (overdistributed) net realized gain (loss)		(491	)		12,108		6,424
Net unrealized appreciation (depreciation) of investments		2,994			11,990		8,738
Total Net Assets	$	45,743		$	205,276	$	118,721
Capital Stock (par value: $.01 per share):
Shares authorized		100,000			200,000		200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	45,743		$	205,266	$	118,711
Shares issued and outstanding		3,574			14,638		9,404
Net Asset Value per share	$	12.80		$	14.02	$	12.62
Class 2: Net Assets		N/A		$	10	$	10
Shares issued and outstanding					1		1
Net Asset Value per share				$	14.01	$	12.62

See accompanying notes.

8

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
		Principal		Principal		Principal
		LifeTime 2040		LifeTime 2050		LifeTime 2060
Amounts in thousands, except per share amounts		Account		Account		Account
Investment in affiliated Accounts--at cost	$	43,459	$	21,201	$	1,919
Assets
Investment in affiliated Accounts--at value	$	46,457	$	23,080	$	1,950
Receivables:
Dividends and interest		9		4		–
Fund shares sold		195		24		65
Total Assets		46,661		23,108		2,015
Liabilities
Accrued management and investment advisory fees		1		1		–
Accrued directors' expenses		1		1		1
Accrued professional fees		–		4		4
Accrued other expenses		4		–		–
Payables:
Fund shares redeemed		4		9		–
Investment securities purchased		201		19		65
Total Liabilities		211		34		70
Net Assets Applicable to Outstanding Shares	$	46,450	$	23,074	$	1,945
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	40,467	$	19,348	$	1,858
Accumulated undistributed (overdistributed) net investment income (loss)		1,173		626		23
Accumulated undistributed (overdistributed) net realized gain (loss)		1,812		1,221		33
Net unrealized appreciation (depreciation) of investments		2,998		1,879		31
Total Net Assets	$	46,450	$	23,074	$	1,945
Capital Stock (par value: $.01 per share):
Shares authorized		200,000		200,000		100,000
Net Asset Value Per Share:
Class 1: Net Assets	$	46,440	$	23,042	$	1,945
Shares issued and outstanding		3,119		1,578		155
Net Asset Value per share	$	14.89	$	14.60	$	12.55
Class 2: Net Assets	$	10	$	32		N/A
Shares issued and outstanding		1		2
Net Asset Value per share	$	14.88	$	14.59

See accompanying notes.

9

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
	Principal
	LifeTime				Real Estate		SAM
	Strategic				Securities		Balanced
Amounts in thousands, except per share amounts	Income Account				Account		Portfolio
Investment in securities--at cost	$	–		$	113,362	$	–
Investment in affiliated Accounts--at cost	$	27,260		$	–	$	762,873
Assets
Investment in securities--at value	$	–		$	151,640	$	–
Investment in affiliated Accounts--at value		28,850			–		897,222
Receivables:
Dividends and interest		16			537		360
Fund shares sold		7			133		198
Investment securities sold		32			1,104		985
Total Assets		28,905			153,414		898,765
Liabilities
Accrued management and investment advisory fees		1			115		169
Accrued distribution fees		–			–		21
Accrued directors' expenses		1			2		4
Accrued other expenses		3			4		4
Payables:
Borrowing		–			120		–
Fund shares redeemed		39			366		1,183
Investment securities purchased		16			–		360
Total Liabilities		60			607		1,741
Net Assets Applicable to Outstanding Shares	$	28,845		$	152,807	$	897,024
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	26,949		$	99,686	$	669,301
Accumulated undistributed (overdistributed) net investment income (loss)		682			3,352		25,895
Accumulated undistributed (overdistributed) net realized gain (loss)		(376	)		11,491		67,479
Net unrealized appreciation (depreciation) of investments		1,590			38,278		134,349
Total Net Assets	$	28,845		$	152,807	$	897,024
Capital Stock (par value: $.01 per share):
Shares authorized		100,000			300,000		300,000
Net Asset Value Per Share:
Class 1: Net Assets	$	28,845		$	151,309	$	797,052
Shares issued and outstanding		2,480			7,168		47,478
Net Asset Value per share	$	11.63		$	21.11	$	16.79
Class 2: Net Assets		N/A		$	1,498	$	99,972
Shares issued and outstanding					71		6,013
Net Asset Value per share				$	21.20	$	16.63

See accompanying notes.

10

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
		SAM
		Conservative		SAM
		Balanced		Conservative		SAM Flexible
Amounts in thousands, except per share amounts		Portfolio		Growth Portfolio		Income Portfolio
Investment in affiliated Accounts--at cost	$	196,818	$	263,672	$	210,397
Assets
Investment in affiliated Accounts--at value	$	221,611	$	308,148	$	234,321
Receivables:
Dividends and interest		110		91		205
Fund shares sold		45		61		2
Investment securities sold		84		129		309
Total Assets		221,850		308,429		234,837
Liabilities
Accrued management and investment advisory fees		41		57		44
Accrued distribution fees		4		22		4
Accrued directors' expenses		2		2		2
Accrued other expenses		4		4		4
Payables:
Fund shares redeemed		129		191		311
Investment securities purchased		110		91		206
Total Liabilities		290		367		571
Net Assets Applicable to Outstanding Shares	$	221,560	$	308,062	$	234,266
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	181,354	$	240,953	$	198,124
Accumulated undistributed (overdistributed) net investment income (loss)		7,287		6,403		9,064
Accumulated undistributed (overdistributed) net realized gain (loss)		8,126		16,230		3,154
Net unrealized appreciation (depreciation) of investments		24,793		44,476		23,924
Total Net Assets	$	221,560	$	308,062	$	234,266
Capital Stock (par value: $.01 per share):
Shares authorized		200,000		200,000		200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	203,342	$	201,691	$	212,836
Shares issued and outstanding		15,915		10,394		15,957
Net Asset Value per share	$	12.78	$	19.40	$	13.34
Class 2: Net Assets	$	18,218	$	106,371	$	21,430
Shares issued and outstanding		1,441		5,547		1,621
Net Asset Value per share	$	12.64	$	19.18	$	13.22

See accompanying notes.

11

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
	SAM Strategic			Short-Term			SmallCap
Amounts in thousands, except per share amounts	Growth Portfolio			Income Account			Blend Account
Investment in securities--at cost	$	–	$	253,608		$	220,697
Investment in affiliated Accounts--at cost	$	214,814	$	–		$	–
Assets
Investment in securities--at value	$	–	$	254,310		$	238,283
Investment in affiliated Accounts--at value		244,748		–			–
Cash		–		50			–
Deposits with counterparty		–		–			21
Receivables:
Dividends and interest		72		1,404			263
Expense reimbursement from Manager		–		2			–
Fund shares sold		61		25			46
Investment securities sold		–		547			3,020
Variation margin on financial derivative instruments		–		–			2
Total Assets		244,881		256,338			241,635
Liabilities
Accrued management and investment advisory fees		46		103			161
Accrued distribution fees		21		–			1
Accrued directors' expenses		2		2			2
Accrued other expenses		4		5			48
Payables:
Fund shares redeemed		15		184			469
Investment securities purchased		117		1,174			3,265
Total Liabilities		205		1,468			3,946
Net Assets Applicable to Outstanding Shares	$	244,676	$	254,870		$	237,689
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	194,090	$	264,593		$	203,249
Accumulated undistributed (overdistributed) net investment income (loss)		5,021		6,426			316
Accumulated undistributed (overdistributed) net realized gain (loss)		15,631		(16,851	)		16,544
Net unrealized appreciation (depreciation) of investments		29,934		702			17,580
Total Net Assets	$	244,676	$	254,870		$	237,689
Capital Stock (par value: $.01 per share):
Shares authorized		200,000		400,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	145,079	$	253,265		$	232,906
Shares issued and outstanding		6,768		97,109			15,340
Net Asset Value per share	$	21.44	$	2.61		$	15.18
Class 2: Net Assets	$	99,597	$	1,605		$	4,783
Shares issued and outstanding		4,695		618			315
Net Asset Value per share	$	21.21	$	2.60		$	15.17

See accompanying notes.

12

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
					Bond & Mortgage
					Securities			Bond Market
Amounts in thousands	Balanced Account				Account(a)			Index Account
Net Investment Income (Loss)
Income:
Dividends	$	317		$	43		$	–
Withholding tax		(5	)		–			–
Interest		273			5,043			17,894
Total Income		585			5,086			17,894
Expenses:
Management and investment advisory fees		148			699			2,254
Custodian fees		9			10			20
Directors' expenses		2			4			15
Professional fees		2			2			2
Other expenses		–			1			1
Total Expenses		161			716			2,292
Net Investment Income (Loss)		424			4,370			15,602
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		2,041			620			3,304
Futures contracts		4			(214	)		–
Short sales		–			–			(5	)
Swap agreements		–			6			–
Change in unrealized appreciation/depreciation of:
Investments		(1,517	)		(3,584	)		(24,147	)
Futures contracts		(1	)		(135	)		–
Swap agreements		–			(190	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		527			(3,497	)		(20,848	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	951		$	873		$	(5,246	)
(a) Class 2 shares commenced operations on May 1, 2015.

See accompanying notes.

13

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
					Diversified
		Diversified			Balanced Managed			Diversified
Amounts in thousands	Balanced Account				Volatility Account			Growth Account
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	–		$	–		$	–
Total Income		–			–			–
Expenses:
Management and investment advisory fees		258			25			750
Distribution Fees - Class 2		1,289			130			3,751
Directors' expenses		9			2			23
Professional fees		1			1			1
Other expenses		1			–			2
Total Expenses		1,558			158			4,527
Net Investment Income (Loss)		(1,558	)		(158	)		(4,527	)
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 in affiliated Accounts		532			(1	)		569
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts		10,054			475			40,873
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		10,586			474			41,442
Net Increase (Decrease) in Net Assets Resulting from Operations	$	9,028		$	316		$	36,915

See accompanying notes.

14

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	Diversified Growth							Diversified
	Managed				Diversified			International
Amounts in thousands	Volatility Account				Income Account			Account
Net Investment Income (Loss)
Income:
Dividends	$	–		$	–		$	7,837
Withholding tax		–			–			(871	)
Total Income		–			–			6,966
Expenses:
Management and investment advisory fees		46			44			1,679
Distribution Fees - Class 2		229			219			2
Custodian fees		–			–			58
Directors' expenses		2			2			4
Professional fees		1			1			10
Other expenses		–			–			2
Total Expenses		278			266			1,755
Net Investment Income (Loss)		(278	)		(266	)		5,211
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		–			–			14,330
Investment transactions in affiliated Accounts		(1	)		37			–
Foreign currency transactions		–			–			(144	)
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $0, $0 and $26, respectively)		–			–			3,066
Investments in affiliated Accounts		1,431			914			–
Translation of assets and liabilities in foreign currencies		–			–			(12	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		1,430			951			17,240
Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,152		$	685		$	22,451

See accompanying notes.

15

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
					Government &
		Equity			High Quality
Amounts in thousands	Income Account				Bond Account			Income Account
Net Investment Income (Loss)
Income:
Dividends	$	9,498		$	–		$	–
Withholding tax		(171	)		–			–
Interest		2			4,770			5,746
Total Income		9,329			4,770			5,746
Expenses:
Management and investment advisory fees		1,479			775			689
Distribution Fees - Class 2		32			2			4
Custodian fees		8			2			1
Directors' expenses		6			4			3
Professional fees		2			2			2
Other expenses		1			–			–
Total Expenses		1,528			785			699
Net Investment Income (Loss)		7,801			3,985			5,047
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		20,082			203			1,153
Foreign currency transactions		(1	)		–			–
Change in unrealized appreciation/depreciation of:
Investments		(28,991	)		(2,677	)		(4,349	)
Translation of assets and liabilities in foreign currencies		(1	)		–			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(8,911	)		(2,474	)		(3,196	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(1,110	)	$	1,511		$	1,851

See accompanying notes.

16

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
		International
		Emerging			LargeCap			LargeCap
Amounts in thousands	Markets Account(a)				Growth Account			Growth Account I(a)
Net Investment Income (Loss)
Income:
Dividends	$	1,570		$	539		$	1,075
Withholding tax		(138	)		(1	)		(2	)
Interest		–			–			2
Total Income		1,432			538			1,075
Expenses:
Management and investment advisory fees		658			424			928
Distribution Fees - Class 2		–			1			–
Custodian fees		54			1			8
Directors' expenses		2			2			3
Professional fees		13			2			2
Total Gross Expenses		727			430			941
Less: Reimbursement from Manager		–			–			20
Total Net Expenses		727			430			921
Net Investment Income (Loss)		705			108			154
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		1,105			3,720			12,332
Foreign currency transactions		(94	)		–			–
Futures contracts		–			–			275
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $27, $0 and $0, respectively)		1,946			3,493			(309	)
Futures contracts		–			–			(203	)
Translation of assets and liabilities in foreign currencies		4			–			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		2,961			7,213			12,095
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,666		$	7,321		$	12,249
(a) Class 2 shares commenced operations on May 1, 2015.

See accompanying notes.

17

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
					LargeCap S&P 500
	LargeCap S&P 500				Managed Volatility			LargeCap
Amounts in thousands	Index Account(a)				Index Account			Value Account(a)
Net Investment Income (Loss)
Income:
Dividends	$	19,481		$	1,065		$	1,865
Withholding tax		(3	)		–			–
Interest		5			2			–
Total Income		19,483			1,067			1,865
Expenses:
Management and investment advisory fees		2,420			267			497
Custodian fees		5			7			2
Directors' expenses		16			2			2
Professional fees		2			2			2
Other expenses		11			1			–
Total Expenses		2,454			279			503
Net Investment Income (Loss)		17,029			788			1,362
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		12,168			(1,849	)		4,828
Futures contracts		2,241			517			64
Options and swaptions		–			1,743			–
Change in unrealized appreciation/depreciation of:
Investments		(8,504	)		(558	)		(6,192	)
Futures contracts		(1,411	)		(137	)		(78	)
Options and swaptions		–			(155	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		4,494			(439	)		(1,378	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	21,523		$	349		$	(16	)
(a) Class 2 shares commenced operations on May 1, 2015.

See accompanying notes.

18

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
							Principal Capital
				Money			Appreciation
Amounts in thousands	MidCap Account			Market Account			Account
Net Investment Income (Loss)
Income:
Dividends	$	2,960		$	–	$	881
Withholding tax		(63	)		–		–
Interest		–			242		–
Total Income		2,897			242		881
Expenses:
Management and investment advisory fees		1,832			608		297
Distribution Fees - Class 2		20			2		9
Custodian fees		3			5		4
Directors' expenses		6			3		2
Professional fees		2			2		2
Other expenses		2			–		–
Total Gross Expenses		1,865			620		314
Less: Reimbursement from Manager - Class 1		–			374		–
Less: Reimbursement from Manager - Class 2		–			2		–
Less: Reimbursement from Distributor - Class 2		–			2		–
Total Net Expenses		1,865			242		314
Net Investment Income (Loss)		1,032			–		567
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		59,306			2		2,386
Change in unrealized appreciation/depreciation of:
Investments		(25,152	)		–		(1,383	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		34,154			2		1,003
Net Increase (Decrease) in Net Assets Resulting from Operations	$	35,186		$	2	$	1,570

See accompanying notes.

19

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	Principal LifeTime			Principal LifeTime		Principal LifeTime
Amounts in thousands	2010 Account			2020 Account(a)		2030 Account(a)
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	101	$	399	$	210
Total Income		101		399		210
Expenses:
Management and investment advisory fees		7		31		18
Directors' expenses		1		3		2
Professional fees		1		1		1
Total Expenses		9		35		21
Net Investment Income (Loss)		92		364		189
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 in affiliated Accounts		573		2,957		2,083
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts		62		657		438
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		635		3,614		2,521
Net Increase (Decrease) in Net Assets Resulting from Operations	$	727	$	3,978	$	2,710
(a) Class 2 shares commenced operations on May 1, 2015.

See accompanying notes.

20

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	Principal LifeTime			Principal LifeTime		Principal LifeTime
Amounts in thousands	2040 Account(a)			2050 Account(a)		2060 Account
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	53	$	28	$	2
Total Income		53		28		2
Expenses:
Management and investment advisory fees		7		3		–
Directors' expenses		1		1		1
Professional fees		1		1		2
Total Gross Expenses		9		5		3
Less: Reimbursement from Manager - Class 1		–		–		2
Total Net Expenses		9		5		1
Net Investment Income (Loss)		44		23		1
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 in affiliated Accounts		220		173		1
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts		881		469		24
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		1,101		642		25
Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,145	$	665	$	26
(a) Class 2 shares commenced operations on May 1, 2015.

See accompanying notes.

21

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	Principal LifeTime
	Strategic				Real Estate			SAM
Amounts in thousands	Income Account				Securities Account			Balanced Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	80		$	–		$	1,576
Dividends		–			1,605			–
Total Income		80			1,605			1,576
Expenses:
Management and investment advisory fees		4			742			1,032
Distribution Fees - Class 2		N/A			1			125
Custodian fees		–			1			–
Directors' expenses		1			3			9
Professional fees		1			2			1
Other expenses		–			–			1
Total Expenses		6			749			1,168
Net Investment Income (Loss)		74			856			408
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		–			7,123			–
Investment transactions in affiliated Accounts		483			–			7,753
Change in unrealized appreciation/depreciation of:
Investments		–			(16,870	)		–
Investments in affiliated Accounts		(237	)		–			7,459
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		246			(9,747	)		15,212
Net Increase (Decrease) in Net Assets Resulting from Operations	$	320		$	(8,891	)	$	15,620

See accompanying notes.

22

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	SAM Conservative			SAM Conservative			SAM Flexible
Amounts in thousands	Balanced Portfolio			Growth Portfolio			Income Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	580	$	281		$	1,079
Total Income		580		281			1,079
Expenses:
Management and investment advisory fees		251		345			266
Distribution Fees - Class 2		22		131			26
Directors' expenses		3		4			3
Professional fees		1		1			1
Total Expenses		277		481			296
Net Investment Income (Loss)		303		(200	)		783
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 in affiliated Accounts		777		929			1,437
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts		2,063		5,257			(143	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		2,840		6,186			1,294
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,143	$	5,986		$	2,077

See accompanying notes.

23

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	SAM Strategic				Short-Term			SmallCap
Amounts in thousands	Growth Portfolio				Income Account			Blend Account (a)
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	204		$	–		$	–
Dividends		–			–			762
Interest		–			2,600			1
Securities lending - net		–			–			1
Total Income		204			2,600			764
Expenses:
Management and investment advisory fees		272			633			554
Distribution Fees - Class 2		123			2			2
Custodian fees		–			3			3
Directors' expenses		3			3			2
Professional fees		1			2			2
Total Gross Expenses		399			643			563
Less: Reimbursement from Manager - Class 1		–			13			–
Total Net Expenses		399			630			563
Net Investment Income (Loss)		(195	)		1,970			201
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		–			(58	)		9,524
Investment transactions in affiliated Accounts		870			–			–
Futures contracts		–			–			79
Change in unrealized appreciation/depreciation of:
Investments		–			135			(1,320	)
Investments in affiliated Accounts		4,121			–			–
Futures contracts		–			–			(44	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		4,991			77			8,239
Net Increase (Decrease) in Net Assets Resulting from Operations	$	4,796		$	2,047		$	8,440
(a) Class 2 shares commenced operations on February 17, 2015.

See accompanying notes.

24

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
								Bond & Mortgage
Amounts in thousands		Balanced Account						Securities Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	424		$	820		$	4,370		$	8,817
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		2,045			4,344			412			5,329
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(1,518	)		(854	)		(3,909	)		1,986
Net Increase (Decrease) in Net Assets Resulting from Operations		951			4,310			873			16,132
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(877	)		–			(9,821	)
Total Dividends and Distributions		–			(877	)		–			(9,821	)
Capital Share Transactions
Shares sold:
Class 1		685			1,942			17,822			63,624
Class 2		N/A			N/A			10			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			877			–			9,821
Shares redeemed:
Class 1		(3,760	)		(7,297	)		(27,964	)		(74,198	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(3,075	)		(4,478	)		(10,132	)		(753	)
Total Increase (Decrease)		(2,124	)		(1,045	)		(9,259	)		5,558
Net Assets
Beginning of period		50,588			51,633			321,735			316,177
End of period (including undistributed net investment income as set forth below)	$	48,464		$	50,588		$	312,476		$	321,735
Undistributed (Overdistributed) Net Investment Income (Loss)	$	1,254		$	830		$	13,214		$	8,844
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		35			105			1,543			5,552
Class 2		N/A			N/A			1			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			47			–			860
Shares redeemed:
Class 1		(192	)		(393	)		(2,413	)		(6,461	)
Net Increase (Decrease)		(157	)		(241	)		(869	)		(49	)

^(a)      Period from May 1, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

25

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
Amounts in thousands		Bond Market Index Account						Diversified Balanced Account
		Period			Year Ended			Period			Year Ended
		Ended June			December			Ended June			December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	15,602		$	25,101		$	(1,558	)	$	10,356
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		3,299			10,525			532			11,579
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(24,147	)		45,396			10,054			44,669
Net Increase (Decrease) in Net Assets Resulting from Operations		(5,246	)		81,022			9,028			66,604
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(16,426	)		N/A			N/A
Class 2		N/A			N/A			–			(8,431	)
From net realized gain on investments:
Class 2		N/A			N/A			–			(10,099	)
Total Dividends and Distributions		–			(16,426	)		–			(18,530	)
Capital Share Transactions
Shares sold:
Class 1		235,672			478,804			N/A			N/A
Class 2		N/A			N/A			37,010			115,524
Shares issued in reinvestment of dividends and distributions:
Class 1		–			16,426			N/A			N/A
Class 2		N/A			N/A			–			18,530
Shares redeemed:
Class 1		(66,668	)		(89,236	)		N/A			N/A
Class 2		N/A			N/A			(16,805	)		(27,806	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		169,004			405,994			20,205			106,248
Total Increase (Decrease)		163,758			470,590			29,233			154,322
Net Assets
Beginning of period		1,734,803			1,264,213			1,011,106			856,784
End of period (including undistributed net investment income as set forth below)	$	1,898,561		$	1,734,803		$	1,040,339		$	1,011,106
Undistributed (Overdistributed) Net Investment Income (Loss)	$	43,624		$	28,022		$	8,795		$	10,353
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		22,629			47,045			N/A			N/A
Class 2		N/A			N/A			2,534			8,223
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,607			N/A			N/A
Class 2		N/A			N/A			–			1,320
Shares redeemed:
Class 1		(6,374	)		(8,784	)		N/A			N/A
Class 2		N/A			N/A			(1,149	)		(1,978	)
Net Increase (Decrease)		16,255			39,868			1,385			7,565

See accompanying notes.

26

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Diversified Balanced
Amounts in thousands		Managed Volatility Account						Diversified Growth Account
		Period		Year Ended				Period			Year Ended
	Ended June			December				Ended June			December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	(158	)	$	1,010		$	(4,527	)	$	31,933
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		(1	)		888			569			39,162
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		475			963			40,873			121,471
Net Increase (Decrease) in Net Assets Resulting from Operations		316			2,861			36,915			192,566
Dividends and Distributions to Shareholders
From net investment income:
Class 2		–			(3	)		–			(24,839	)
From net realized gain on investments:
Class 2		–			(5	)		–			(32,952	)
Total Dividends and Distributions		–			(8	)		–			(57,791	)
Capital Share Transactions
Shares sold:
Class 2		39,599			82,225			198,170			507,652
Shares issued in reinvestment of dividends and distributions:
Class 2		–			8			–			57,791
Shares redeemed:
Class 2		(1,782	)		(1,446	)		(17,083	)		(22,353	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		37,817			80,787			181,087			543,090
Total Increase (Decrease)		38,133			83,640			218,002			677,865
Net Assets
Beginning of period		84,527			887			2,880,722			2,202,857
End of period (including undistributed net investment income as set forth below)	$	122,660		$	84,527		$	3,098,724		$	2,880,722
Undistributed (Overdistributed) Net Investment Income (Loss)	$	851		$	1,009		$	27,398		$	31,925
Increase (Decrease) in Capital Shares
Shares sold:
Class 2		3,585			7,819			12,629			33,899
Shares issued in reinvestment of dividends and distributions:
Class 2		–			1			–			3,861
Shares redeemed:
Class 2		(161	)		(137	)		(1,092	)		(1,483	)
Net Increase (Decrease)		3,424			7,683			11,537			36,277

See accompanying notes.

27

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Diversified Growth
Amounts in thousands		Managed Volatility Account						Diversified Income Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	(278	)	$	2,223		$	(266	)	$	1,446
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		(1	)		2,049			37			1,277
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		1,431			1,531			914			6,491
Net Increase (Decrease) in Net Assets Resulting from Operations		1,152			5,803			685			9,214
Dividends and Distributions to Shareholders
From net investment income:
Class 2		–			(15	)		–			(784	)
From net realized gain on investments:
Class 2		–			(29	)		–			(824	)
Total Dividends and Distributions		–			(44	)		–			(1,608	)
Capital Share Transactions
Shares sold:
Class 2		63,651			144,628			20,927			66,377
Shares issued in reinvestment of dividends and distributions:
Class 2		–			44			–			1,608
Shares redeemed:
Class 2		(2,089	)		(2,747	)		(10,953	)		(19,066	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		61,562			141,925			9,974			48,919
Total Increase (Decrease)		62,714			147,684			10,659			56,525
Net Assets
Beginning of period		151,672			3,988			168,562			112,037
End of period (including undistributed net investment income as set forth below)	$	214,386		$	151,672		$	179,221		$	168,562
Undistributed (Overdistributed) Net Investment Income (Loss)	$	1,945		$	2,223		$	1,180		$	1,446
Increase (Decrease) in Capital Shares
Shares sold:
Class 2		5,679			13,663			1,715			5,657
Shares issued in reinvestment of dividends and distributions:
Class 2		–			4			–			136
Shares redeemed:
Class 2		(187	)		(258	)		(900	)		(1,634	)
Net Increase (Decrease)		5,492			13,409			815			4,159

See accompanying notes.

28

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Diversified
Amounts in thousands		International Account						Equity Income Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	5,211		$	7,938		$	7,801		$	16,715
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		14,186			31,940			20,081			48,459
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		3,054			(54,005	)		(28,992	)		12,687
Net Increase (Decrease) in Net Assets Resulting from Operations		22,451			(14,127	)		(1,110	)		77,861
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(10,543	)		–			(15,060	)
Class 2		–			(25	)		–			(542	)
Total Dividends and Distributions		–			(10,568	)		–			(15,602	)
Capital Share Transactions
Shares sold:
Class 1		10,859			18,555			21,183			27,917
Class 2		187			112			1,006			712
Shares issued in reinvestment of dividends and distributions:
Class 1		–			10,543			–			15,060
Class 2		–			25			–			542
Shares redeemed:
Class 1		(65,119	)		(76,371	)		(54,134	)		(133,970	)
Class 2		(91	)		(261	)		(1,223	)		(2,974	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(54,164	)		(47,397	)		(33,168	)		(92,713	)
Total Increase (Decrease)		(31,713	)		(72,092	)		(34,278	)		(30,454	)
Net Assets
Beginning of period		430,460			502,552			624,898			655,352
End of period (including undistributed net investment income as set forth below)	$	398,747		$	430,460		$	590,620		$	624,898
Undistributed (Overdistributed) Net Investment Income (Loss)	$	11,322		$	6,111		$	26,892		$	19,091
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		732			1,256			915			1,264
Class 2		13			8			44			32
Shares issued in reinvestment of dividends and distributions:
Class 1		–			707			–			684
Class 2		–			2			–			25
Shares redeemed:
Class 1		(4,570	)		(5,196	)		(2,318	)		(6,039	)
Class 2		(6	)		(18	)		(53	)		(136	)
Net Increase (Decrease)		(3,831	)		(3,241	)		(1,412	)		(4,170	)

See accompanying notes.

29

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Government & High
Amounts in thousands		Quality Bond Account						Income Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	3,985		$	8,789		$	5,047		$	11,190
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		203			2,348			1,153			2,029
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(2,677	)		6,201			(4,349	)		1,774
Net Increase (Decrease) in Net Assets Resulting from Operations		1,511			17,338			1,851			14,993
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(12,571	)		–			(12,529	)
Class 2		–			(31	)		–			(128	)
Total Dividends and Distributions		–			(12,602	)		–			(12,657	)
Capital Share Transactions
Shares sold:
Class 1		8,888			23,451			7,354			11,225
Class 2		940			69			4			19
Shares issued in reinvestment of dividends and distributions:
Class 1		–			12,571			–			12,529
Class 2		–			31			–			128
Shares redeemed:
Class 1		(22,739	)		(105,587	)		(12,025	)		(19,783	)
Class 2		(49	)		(128	)		(372	)		(541	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(12,960	)		(69,593	)		(5,039	)		3,577
Total Increase (Decrease)		(11,449	)		(64,857	)		(3,188	)		5,913
Net Assets
Beginning of period		315,425			380,282			278,633			272,720
End of period (including undistributed net investment income as set forth below)	$	303,976		$	315,425		$	275,445		$	278,633
Undistributed (Overdistributed) Net Investment Income (Loss)	$	13,969		$	9,984		$	15,217		$	10,170
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		843			2,244			675			1,028
Class 2		89			7			–			2
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,219			–			1,165
Class 2		–			3			–			12
Shares redeemed:
Class 1		(2,160	)		(10,065	)		(1,103	)		(1,835	)
Class 2		(5	)		(12	)		(34	)		(50	)
Net Increase (Decrease)		(1,233	)		(6,604	)		(462	)		322

See accompanying notes.

30

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		International Emerging
Amounts in thousands		Markets Account						LargeCap Growth Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
	30, 2015		(a)		31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	705		$	1,419		$	108		$	140
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		1,011			(338	)		3,720			9,440
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		1,950			(5,001	)		3,493			2,705
Net Increase (Decrease) in Net Assets Resulting from Operations		3,666			(3,920	)		7,321			12,285
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(1,021	)		–			(664	)
Class 2		–			N/A			–			(2	)
Total Dividends and Distributions		–			(1,021	)		–			(666	)
Capital Share Transactions
Shares sold:
Class 1		6,255			11,838			4,164			28,520
Class 2		14			N/A			356			64
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,021			–			664
Class 2		–			N/A			–			2
Shares redeemed:
Class 1		(8,589	)		(18,132	)		(10,249	)		(17,781	)
Class 2		–			N/A			(70	)		(188	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,320	)		(5,273	)		(5,799	)		11,281
Total Increase (Decrease)		1,346			(10,214	)		1,522			22,900
Net Assets
Beginning of period		103,091			113,305			123,752			100,852
End of period (including undistributed net investment income as set forth below)	$	104,437		$	103,091		$	125,274		$	123,752
Undistributed (Overdistributed) Net Investment Income (Loss)	$	2,203		$	1,498		$	281		$	173
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		394			751			162			1,243
Class 2		1			N/A			14			3
Shares issued in reinvestment of dividends and distributions:
Class 1		–			61			–			28
Shares redeemed:
Class 1		(544	)		(1,144	)		(398	)		(767	)
Class 2		–			N/A			(3	)		(8	)
Net Increase (Decrease)		(149	)		(332	)		(225	)		499

^(a)      Period from May 1, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

31

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
								LargeCap S&P 500
Amounts in thousands	LargeCap Growth Account I							Index Account
		Period		Year Ended				Period			Year Ended
	Ended June			December				Ended June			December
	30, 2015		(a)		31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	154		$	260		$	17,029		$	29,303
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		12,607			37,938			14,409			24,226
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(512	)		(18,526	)		(9,915	)		163,750
Net Increase (Decrease) in Net Assets Resulting from Operations		12,249			19,672			21,523			217,279
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(280	)		–			(21,549	)
From net realized gain on investments:
Class 1		–			(43,706	)		–			(38,504	)
Total Dividends and Distributions		–			(43,986	)		–			(60,053	)
Capital Share Transactions
Shares sold:
Class 1		9,883			16,931			166,972			326,836
Class 2		10			N/A			10			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			43,986			–			60,053
Shares redeemed:
Class 1		(16,028	)		(57,008	)		(81,249	)		(171,432	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(6,135	)		3,909			85,733			215,457
Total Increase (Decrease)		6,114			(20,405	)		107,256			372,683
Net Assets
Beginning of period		239,629			260,034			1,863,035			1,490,352
End of period (including undistributed net investment income as set forth below)	$	245,743		$	239,629		$	1,970,291		$	1,863,035
Undistributed (Overdistributed) Net Investment Income (Loss)	$	523		$	369		$	46,455		$	29,426
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		329			547			11,276			23,662
Class 2		–			N/A			1			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,609			–			4,352
Shares redeemed:
Class 1		(537	)		(1,788	)		(5,410	)		(12,123	)
Net Increase (Decrease)		(208	)		368			5,867			15,891

^(a)      Period from May 1, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

32

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
	LargeCap S&P 500 Managed
Amounts in thousands		Volatility Index Account						LargeCap Value Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	788		$	661		$	1,362		$	2,432
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		411			1,026			4,892			17,996
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(850	)		5,510			(6,270	)		(2,617	)
Net Increase (Decrease) in Net Assets Resulting from Operations		349			7,197			(16	)		17,811
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(666	)		–			(3,512	)
From net realized gain on investments:
Class 1		–			(3,250	)		–			(23,015	)
Total Dividends and Distributions		–			(3,916	)		–			(26,527	)
Capital Share Transactions
Shares sold:
Class 1		44,510			93,318			3,110			8,230
Class 2		N/A			N/A			10			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			3,916			–			26,527
Shares redeemed:
Class 1		(4,168	)		(10,618	)		(11,943	)		(23,070	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		40,342			86,616			(8,823	)		11,687
Total Increase (Decrease)		40,691			89,897			(8,839	)		2,971
Net Assets
Beginning of period		97,236			7,339			170,673			167,702
End of period (including undistributed net investment income as set forth below)	$	137,927		$	97,236		$	161,834		$	170,673
Undistributed (Overdistributed) Net Investment Income (Loss)	$	788		$	–		$	3,810		$	2,448
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		3,908			8,565			92			230
Shares issued in reinvestment of dividends and distributions:
Class 1		–			346			–			829
Shares redeemed:
Class 1		(362	)		(946	)		(353	)		(651	)
Net Increase (Decrease)		3,546			7,965			(261	)		408

^(a)      Period from May 1, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

33

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
Amounts in thousands		MidCap Account						Money Market Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	1,032		$	3,843		$	–		$	–
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		59,306			72,862			2			–
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(25,152	)		3,163			–			–
Net Increase (Decrease) in Net Assets Resulting from Operations		35,186			79,868			2			–
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(3,218	)		–			–
Class 2		–			(44	)		–			–
From net realized gain on investments:
Class 1		–			(55,916	)		–			–
Class 2		–			(1,367	)		–			–
Total Dividends and Distributions		–			(60,545	)		–			–
Capital Share Transactions
Shares sold:
Class 1		14,653			58,293			76,934			146,475
Class 2		152			341			6,177			295
Shares issued in reinvestment of dividends and distributions:
Class 1		–			59,134			–			–
Class 2		–			1,411			–			–
Shares redeemed:
Class 1		(51,618	)		(109,369	)		(86,462	)		(150,680	)
Class 2		(681	)		(1,335	)		(4,982	)		(320	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(37,494	)		8,475			(8,333	)		(4,230	)
Total Increase (Decrease)		(2,308	)		27,798			(8,331	)		(4,230	)
Net Assets
Beginning of period		692,796			664,998			279,837			284,067
End of period (including undistributed net investment income as set forth below)	$	690,488		$	692,796		$	271,506		$	279,837
Undistributed (Overdistributed) Net Investment Income (Loss)	$	5,535		$	4,503		$	–		$	–
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		235			987			76,934			146,475
Class 2		2			6			6,177			295
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,037			–			–
Class 2		–			25			–			–
Shares redeemed:
Class 1		(810	)		(1,836	)		(86,462	)		(150,680	)
Class 2		(11	)		(22	)		(4,982	)		(320	)
Net Increase (Decrease)		(584	)		197			(8,333	)		(4,230	)

See accompanying notes.

34

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Principal Capital						Principal
Amounts in thousands		Appreciation Account						LifeTime 2010 Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	567		$	378		$	92		$	987
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		2,386			3,036			573			1,561
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(1,383	)		1,130			62			(213	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,570			4,544			727			2,335
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(1,007	)		–			(1,067	)
Class 2		–			(188	)		N/A			N/A
From net realized gain on investments:
Class 1		–			(5,104	)		–			–
Class 2		–			(1,024	)		N/A			N/A
Total Dividends and Distributions		–			(7,323	)		–			(1,067	)
Capital Share Transactions
Shares sold:
Class 1		1,679			1,823			3,967			6,935
Class 2		455			496			N/A			N/A
Shares issued in acquisition:
Class 1		139,230			N/A			N/A			N/A
Class 2		1,001			N/A			N/A			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			6,111			–			1,067
Class 2		–			1,212			N/A			N/A
Shares redeemed:
Class 1		(7,890	)		(4,508	)		(6,263	)		(10,733	)
Class 2		(871	)		(713	)		N/A			N/A
Net Increase (Decrease) in Net Assets from Capital Share Transactions		133,604			4,421			(2,296	)		(2,731	)
Total Increase (Decrease)		135,174			1,642			(1,569	)		(1,463	)
Net Assets
Beginning of period		40,081			38,439			47,312			48,775
End of period (including undistributed net investment income as set forth below)	$	175,255		$	40,081		$	45,743		$	47,312
Undistributed (Overdistributed) Net Investment Income (Loss)	$	986		$	419		$	1,077		$	985
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		73			77			309			554
Class 2		20			23			N/A			N/A
Shares issued in acquisition:
Class 1		6,089			N/A			N/A			N/A
Class 2		44			N/A			N/A			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			290			–			85
Class 2		–			58			N/A			N/A
Shares redeemed:
Class 1		(342	)		(191	)		(489	)		(855	)
Class 2		(39	)		(31	)		N/A			N/A
Net Increase (Decrease)		5,845			226			(180	)		(216	)

See accompanying notes.

35

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Principal						Principal
Amounts in thousands		LifeTime 2020 Account						LifeTime 2030 Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
	30, 2015		(a)		31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	364		$	5,283		$	189		$	3,047
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		2,957			9,308			2,083			4,444
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		657			(2,278	)		438			(747	)
Net Increase (Decrease) in Net Assets Resulting from Operations		3,978			12,313			2,710			6,744
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(5,146	)		–			(2,464	)
Class 2		–			N/A			–			N/A
From net realized gain on investments:
Class 1		–			(4,522	)		–			(17,388	)
Class 2		–			N/A			–			N/A
Total Dividends and Distributions		–			(9,668	)		–			(19,852	)
Capital Share Transactions
Shares sold:
Class 1		14,793			23,861			10,475			17,100
Class 2		10			N/A			10			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			9,668			–			19,852
Class 2		–			N/A			–			N/A
Shares redeemed:
Class 1		(24,975	)		(52,689	)		(11,439	)		(15,673	)
Class 2		–			N/A			–			N/A
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(10,172	)		(19,160	)		(954	)		21,279
Total Increase (Decrease)		(6,194	)		(16,515	)		1,756			8,171
Net Assets
Beginning of period		211,470			227,985			116,965			108,794
End of period (including undistributed net investment income as set forth below)	$	205,276		$	211,470		$	118,721		$	116,965
Undistributed (Overdistributed) Net Investment Income (Loss)	$	5,646		$	5,282		$	3,235		$	3,046
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		1,051			1,732			831			1,269
Class 2		1			N/A			1			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			709			–			1,630
Class 2		–			N/A			–			N/A
Shares redeemed:
Class 1		(1,770	)		(3,828	)		(902	)		(1,165	)
Class 2		–			N/A			–			N/A
Net Increase (Decrease)		(718	)		(1,387	)		(70	)		1,734

^(a)      Period from May 1, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

36

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Principal						Principal
Amounts in thousands		LifeTime 2040 Account						LifeTime 2050 Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
	30, 2015		(a)		31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	44		$	1,129		$	23		$	603
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		220			1,626			173			1,067
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		881			(415	)		469			(233	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,145			2,340			665			1,437
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(805	)		–			(471	)
From net realized gain on investments:
Class 1		–			(2,699	)		–			(1,847	)
Total Dividends and Distributions		–			(3,504	)		–			(2,318	)
Capital Share Transactions
Shares sold:
Class 1		7,025			9,865			3,743			5,164
Class 2		10			N/A			33			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			3,504			–			2,318
Shares redeemed:
Class 1		(4,034	)		(6,835	)		(3,163	)		(6,807	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		3,001			6,534			613			675
Total Increase (Decrease)		4,146			5,370			1,278			(206	)
Net Assets
Beginning of period		42,304			36,934			21,796			22,002
End of period (including undistributed net investment income as set forth below)	$	46,450		$	42,304		$	23,074		$	21,796
Undistributed (Overdistributed) Net Investment Income (Loss)	$	1,173		$	1,129		$	626		$	603
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		472			665			258			355
Class 2		1			N/A			2			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			246			–			166
Shares redeemed:
Class 1		(271	)		(465	)		(217	)		(455	)
Net Increase (Decrease)		202			446			43			66

^(a)      Period from May 1, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

37

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Principal						Principal LifeTime
Amounts in thousands		LifeTime 2060 Account						Strategic Income Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	1		$	22		$	74		$	609
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		1			32			483			730
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		24			6			(237	)		17
Net Increase (Decrease) in Net Assets Resulting from Operations		26			60			320			1,356
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(1	)		–			(766	)
From net realized gain on investments:
Class 1		–			(1	)		–			–
Total Dividends and Distributions		–			(2	)		–			(766	)
Capital Share Transactions
Shares sold:
Class 1		1,199			1,027			2,329			4,354
Shares issued in reinvestment of dividends and distributions:
Class 1		–			2			–			766
Shares redeemed:
Class 1		(105	)		(290	)		(3,820	)		(6,858	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		1,094			739			(1,491	)		(1,738	)
Total Increase (Decrease)		1,120			797			(1,171	)		(1,148	)
Net Assets
Beginning of period		825			28			30,016			31,164
End of period (including undistributed net investment income as set forth below)	$	1,945		$	825		$	28,845		$	30,016
Undistributed (Overdistributed) Net Investment Income (Loss)	$	23		$	22		$	682		$	608
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		96			89			200			377
Shares issued in reinvestment of dividends and distributions:
Class 1		–			–			–			67
Shares redeemed:
Class 1		(8	)		(24	)		(327	)		(597	)
Net Increase (Decrease)		88			65			(127	)		(153	)

See accompanying notes.

38

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Real Estate
Amounts in thousands		Securities Account						SAM Balanced Portfolio
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	856		$	2,192		$	408		$	25,489
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		7,123			6,240			7,753			68,022
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(16,870	)		32,938			7,459			(29,299	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(8,891	)		41,370			15,620			64,212
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(2,395	)		–			(23,276	)
Class 2		–			(4	)		–			(2,500	)
From net realized gain on investments:
Class 1		–			–			–			(120,112	)
Class 2		–			–			–			(14,177	)
Total Dividends and Distributions		–			(2,399	)		–			(160,065	)
Capital Share Transactions
Shares sold:
Class 1		12,582			21,401			14,526			20,836
Class 2		1,203			189			5,299			5,050
Shares issued in reinvestment of dividends and distributions:
Class 1		–			2,395			–			143,388
Class 2		–			4			–			16,677
Shares redeemed:
Class 1		(19,185	)		(24,586	)		(58,428	)		(165,575	)
Class 2		(95	)		(53	)		(6,753	)		(14,302	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,495	)		(650	)		(45,356	)		6,074
Total Increase (Decrease)		(14,386	)		38,321			(29,736	)		(89,779	)
Net Assets
Beginning of period		167,193			128,872			926,760			1,016,539
End of period (including undistributed net investment income as set forth below)	$	152,807		$	167,193		$	897,024		$	926,760
Undistributed (Overdistributed) Net Investment Income (Loss)	$	3,352		$	2,496		$	25,895		$	25,487
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		542			1,078			860			1,163
Class 2		53			9			317			290
Shares issued in reinvestment of dividends and distributions:
Class 1		–			119			–			8,862
Class 2		–			–			–			1,038
Shares redeemed:
Class 1		(841	)		(1,258	)		(3,476	)		(9,257	)
Class 2		(4	)		(3	)		(404	)		(812	)
Net Increase (Decrease)		(250	)		(55	)		(2,703	)		1,284

See accompanying notes.

39

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		SAM Conservative						SAM Conservative
Amounts in thousands		Balanced Portfolio						Growth Portfolio
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	303		$	6,985		$	(200	)	$	6,604
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		777			11,274			929			20,264
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		2,063			(4,698	)		5,257			(6,542	)
Net Increase (Decrease) in Net Assets Resulting from Operations		3,143			13,561			5,986			20,326
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(6,281	)		–			(3,414	)
Class 2		–			(450	)		–			(1,627	)
From net realized gain on investments:
Class 1		–			(17,846	)		–			(22,853	)
Class 2		–			(1,393	)		–			(12,440	)
Total Dividends and Distributions		–			(25,970	)		–			(40,334	)
Capital Share Transactions
Shares sold:
Class 1		9,489			18,269			11,983			26,377
Class 2		2,593			1,589			7,810			7,412
Shares issued in reinvestment of dividends and distributions:
Class 1		–			24,127			–			26,267
Class 2		–			1,843			–			14,067
Shares redeemed:
Class 1		(15,705	)		(36,531	)		(12,780	)		(21,167	)
Class 2		(1,312	)		(1,923	)		(6,159	)		(10,589	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(4,935	)		7,374			854			42,367
Total Increase (Decrease)		(1,792	)		(5,035	)		6,840			22,359
Net Assets
Beginning of period		223,352			228,387			301,222			278,863
End of period (including undistributed net investment income as set forth below)	$	221,560		$	223,352		$	308,062		$	301,222
Undistributed (Overdistributed) Net Investment Income (Loss)	$	7,287		$	6,984		$	6,403		$	6,603
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		740			1,378			615			1,338
Class 2		203			124			406			378
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,943			–			1,416
Class 2		–			150			–			766
Shares redeemed:
Class 1		(1,228	)		(2,767	)		(656	)		(1,050	)
Class 2		(103	)		(148	)		(319	)		(533	)
Net Increase (Decrease)		(388	)		680			46			2,315

See accompanying notes.

40

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		SAM Flexible						SAM Strategic
Amounts in thousands		Income Portfolio						Growth Portfolio
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	783		$	8,281		$	(195	)	$	5,217
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		1,437			6,566			870			19,399
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		(143	)		(1,072	)		4,121			(6,413	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,077			13,775			4,796			18,203
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(7,762	)		–			(1,996	)
Class 2		–			(654	)		–			(1,242	)
From net realized gain on investments:
Class 1		–			(12,001	)		–			(21,163	)
Class 2		–			(1,089	)		–			(15,284	)
Total Dividends and Distributions		–			(21,506	)		–			(39,685	)
Capital Share Transactions
Shares sold:
Class 1		8,991			20,434			12,412			21,352
Class 2		5,278			1,049			5,531			7,817
Shares issued in reinvestment of dividends and distributions:
Class 1		–			19,763			–			23,159
Class 2		–			1,743			–			16,526
Shares redeemed:
Class 1		(13,403	)		(32,361	)		(9,110	)		(14,336	)
Class 2		(3,822	)		(1,788	)		(4,262	)		(6,465	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,956	)		8,840			4,571			48,053
Total Increase (Decrease)		(879	)		1,109			9,367			26,571
Net Assets
Beginning of period		235,145			234,036			235,309			208,738
End of period (including undistributed net investment income as set forth below)	$	234,266		$	235,145		$	244,676		$	235,309
Undistributed (Overdistributed) Net Investment Income (Loss)	$	9,064		$	8,281		$	5,021		$	5,216
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		672			1,498			581			959
Class 2		396			78			260			354
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,509			–			1,140
Class 2		–			134			–			820
Shares redeemed:
Class 1		(1,001	)		(2,366	)		(426	)		(626	)
Class 2		(287	)		(129	)		(201	)		(289	)
Net Increase (Decrease)		(220	)		724			214			2,358

See accompanying notes.

41

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
Amounts in thousands	Short-Term Income Account							SmallCap Blend Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	1,970		$	4,463		$	201		$	103
Net realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements		(58	)		1,551			9,603			7,009
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies		135			(2,109	)		(1,364	)		(4,096	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,047			3,905			8,440			3,016
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(4,262	)		–			(224	)
Class 2		–			(12	)		–			N/A
From net realized gain on investments:
Class 1		–			–			–			(1,866	)
Total Dividends and Distributions		–			(4,274	)		–			(2,090	)
Capital Share Transactions
Shares sold:
Class 1		12,295			53,517			4,252			5,643
Class 2		913			96			1,496			N/A
Shares issued in acquisition:
Class 1		N/A			N/A			166,992			N/A
Class 2		N/A			N/A			4,615			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			4,262			–			2,090
Class 2		–			12			–			N/A
Shares redeemed:
Class 1		(28,746	)		(46,298	)		(11,408	)		(8,762	)
Class 2		(226	)		(32	)		(1,380	)		N/A
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(15,764	)		11,557			164,567			(1,029	)
Total Increase (Decrease)		(13,717	)		11,188			173,007			(103	)
Net Assets
Beginning of period		268,587			257,399			64,682			64,785
End of period (including undistributed net investment income as set forth below)	$	254,870		$	268,587		$	237,689		$	64,682
Undistributed (Overdistributed) Net Investment Income (Loss)	$	6,426		$	4,456		$	316		$	115
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		4,720			20,614			289			414
Class 2		351			38			99			N/A
Shares issued in acquisition:
Class 1		N/A			N/A			11,187			N/A
Class 2		N/A			N/A			309			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,652			–			156
Class 2		–			4			–			N/A
Shares redeemed:
Class 1		(11,039	)		(17,795	)		(760	)		(643	)
Class 2		(87	)		(12	)		(93	)		N/A
Net Increase (Decrease)		(6,055	)		4,501			11,031			(73	)

^(a)      Period from February 17, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

42

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

1. Organization

Principal Variable Contracts 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 Balanced Account, Bond & Mortgage Securities Account, Bond Market Index Account, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Income Account, Diversified International Account, Equity Income Account, Government & High Quality Bond Account, Income Account, International Emerging Markets Account, LargeCap Growth Account, LargeCap Growth Account I, LargeCap S&P 500 Index Account, LargeCap S&P 500 Managed Volatility Index Account, LargeCap Value Account, MidCap Account, Money Market Account, Principal Capital Appreciation Account, Principal LifeTime 2010 Account, Principal LifeTime 2020 Account, Principal LifeTime 2030 Account, Principal LifeTime 2040 Account, Principal LifeTime 2050 Account, Principal LifeTime 2060 Account, Principal LifeTime Strategic Income Account, Real Estate Securities Account, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Account and SmallCap Blend Account, (known as the “Accounts”), are presented herein.

Each of the Accounts is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946, Financial Services - Investment Companies. Each of the Accounts was an investment company at all times during the period. The Accounts have not provided financial support, and are not contractually required to provide financial support to any investee.

Effective February 17, 2015, the initial purchase of $10,000 of Class 2 shares of SmallCap Blend Account was made by Principal Management Corporation (the “Manager”).

Effective April 17, 2015, Principal Capital Appreciation Account acquired all the assets and assumed all the liabilities of LargeCap Blend Account II pursuant to a plan of acquisition approved by shareholders on April 10, 2015. The purpose of the acquisition was to combine two accounts managed by Principal Management Corporation (the “Manager”) with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 16,768,000 shares from LargeCap Blend Account II for 6,133,000 shares valued at $140,231,000 of Principal Capital Appreciation Account at an approximate exchange rate of .37 for Class 1 and Class 2 shares. The investment securities of LargeCap Blend Account II, with a fair value of approximately $133,987,000 and a cost of $121,386,000, were the primary asset acquired by Principal Capital Appreciation Account on April 17, 2015. For financial reporting purposes, assets received and shares issued by Principal Capital Appreciation Account were recorded at fair value; however the cost basis of the investments received from LargeCap Blend Account II was carried forward to align ongoing reporting of Principal Capital Appreciation Account. The aggregate net assets of LargeCap Blend Account II and Principal Capital Appreciation Account immediately prior to the acquisition in accordance with U.S. GAAP were approximately $140,231,000 ($1,448,000 of accumulated realized losses and $12,601,000 of unrealized appreciation) and $40,552,000, respectively. The aggregate net assets of Principal Capital Appreciation Account immediately following the acquisition were $180,783,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.

Assuming the acquisition had been completed on January 1, 2015, the beginning of the fiscal year for Principal Capital Appreciation Account, Principal Capital Appreciation Account’s pro forma results of operations for the period ended June 30, 2015, would have been $921,000 of net investment income, $2,416,000 of net realized and unrealized gain on investments, and $3,337,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of LargeCap Blend Account II that have been included in Principal Capital Appreciation Account’s statement of operations since April 17, 2015.

43

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

1. Organization (Continued)

Effective April 17, 2015, SmallCap Blend Account acquired all the assets and assumed all the liabilities of SmallCap Growth Account II and SmallCap Value Account I pursuant to a plan of acquisition approved by shareholders on April 10, 2015. The purpose of the acquisition was to combine three accounts managed by Principal Management Corporation with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 4,083,000 and 7,295,000 shares from SmallCap Growth Account II and SmallCap Value Account I, respectively for 4,587,000 and 6,909,000 shares valued at $68,472,000 and $103,135,000 of SmallCap Blend Account at an approximate exchange rate of 1.13 and 1.10 for Class 1 and Class 2 shares and .95 and .94 for Class 1 and Class 2 shares, respectively. The investment securities of SmallCap Growth Account II, with a fair value of approximately $65,319,000 and a cost of $64,126,000, and the investment securities of SmallCap Value Account I with a fair value of approximately $98,490,000 and a cost of $95,480,000 were the primary asset acquired by SmallCap Blend Account on April 17, 2015. For financial reporting purposes, assets received and shares issued by SmallCap Blend Account were recorded at fair value; however the cost basis of the investments received from SmallCap Growth Account II and SmallCap Value Account I were carried forward to align ongoing reporting of SmallCap Blend Account. The aggregate net assets of SmallCap Growth Account II, SmallCap Value Account I and SmallCap Blend Account immediately prior to the acquisition in accordance with U.S. GAAP were approximately $68,471,000 ($194,000 of accumulated realized gain and $1,193,000 of unrealized appreciation) $103,136,000 ($665,000 of accumulated realized losses and $3,010,000 of unrealized appreciation) and $68,436,000, respectively. The aggregate net assets of SmallCap Blend Account immediately following the acquisition were $240,043,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.

Assuming the acquisition had been completed on January 1, 2015, the beginning of the fiscal year for SmallCap Blend Account, SmallCap Blend Account’s pro forma results of operations for the period ended June 30, 2015, would have been $287,000 of net investment income, $13,995,000 of net realized and unrealized gain on investments, and $14,282,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of SmallCap Growth Account II and SmallCap Value Account I that have been included in SmallCap Blend Account’s statement of operations since April 17, 2015.

Effective May 1, 2015, the initial purchases of $10,000 of Class 2 shares of Bond & Mortgage Securities Account, International Emerging Markets Account, LargeCap Growth Account I, LargeCap S&P 500 Index Account, LargeCap Value Account, Principal LifeTime 2020 Account, Principal LifeTime 2030 Account, Principal LifeTime 2040 Account and Principal LifeTime 2050 Account were made by the Manager.

2. Significant Accounting Policies

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. Principal LifeTime 2010 Account, Principal LifeTime 2020 Account, Principal LifeTime 2030 Account, Principal LifeTime 2040 Account, Principal LifeTime 2050 Account, Principal LifeTime 2060 Account, and Principal LifeTime Strategic Income Account (collectively, the “Principal LifeTime Accounts”) along with SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) and Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, and Diversified Income Account invest in combinations of other series of Principal Variable Contracts Funds, Inc. and Principal Funds, Inc. (the “Underlying Funds”). Investments in the Underlying Funds are valued at the closing net asset value per share of each Underlying Fund on the day of valuation.

44

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

2. Significant Accounting Policies (Continued)

The Accounts (with the exception of Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Income Account, Money Market Account, Principal LifeTime Accounts, and SAM Portfolios) value securities 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, an evaluated bid price or, in the case of certain credit default swaps, a mean 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. 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 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 Accounts’ net asset values are reflected in the Accounts’ net asset values and these securities are valued at fair value as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors. Many factors 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 ADRs, futures contracts, industry indices, general indices, and foreign currencies.

To the extent the Accounts invest in foreign securities listed on foreign exchanges which trade on days on which the Accounts do not determine their net asset values, for example weekends and other customary national U.S. holidays, the Accounts’ net asset values could be significantly affected on days when shareholders cannot purchase or redeem shares.

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 Accounts 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.

Money Market Account values its securities, other than holdings of other publicly traded investment funds, at amortized cost as permitted under Rule 2a-7 of the Investment Company Act of 1940. Other publicly traded investment funds are valued at the funds’ net asset value. Under the amortized cost method, a security is valued by applying a constant yield to maturity of the difference between the principal amount due at maturity and the cost of the security to the Account.

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 account 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 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.

45

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

2. Significant Accounting Policies (Continued)

The following Accounts held securities denominated in foreign currencies that exceeded 5% of net assets of the Account:

Diversified International Account			International Emerging Markets Account
Euro	19.5	%	Hong Kong Dollar	24.6	%
Japanese Yen	16.5		South Korean Won	16.0
British Pound	14.1		Taiwan Dollar	14.7
Canadian Dollar	11.5		Indian Rupee	9.4
Swiss Franc	6.9		South African Rand	7.4
			Brazilian Real	5.6
			Mexican Peso	5.3

Income and Investment Transactions. The Accounts 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 Accounts 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 Accounts are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized over the lives of the respective securities. The Accounts allocate daily all income and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding (number of settled shares outstanding for Money Market Account) of each class.

Expenses. Expenses directly attributed to a particular Account are charged to that Account. Other Account expenses not directly attributed to an Account are apportioned among the registered investment companies managed by the Manager.

Management fees are allocated daily to each class of shares based upon the relative proportion of the value of shares outstanding (number of settled shares outstanding for Money Market Account) 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 that each of the Principal LifeTime Accounts, SAM Portfolios, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, and Diversified Income Account (collectively, the “Fund of Funds”) bear directly, each of the Fund of Funds indirectly bear a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense levels and each of the Fund of Funds may own different proportions of Underlying Funds at different times, the amount of expense incurred indirectly by each of the Fund of Funds will vary. Expenses included in the statements of operations of the Fund of Funds reflect the expenses of each Fund of Fund and do not include any expenses associated with the Underlying Funds.

Distributions to Shareholders. With respect to Money Market Account, all net investment income and any realized gains from investment transactions are declared as dividends daily to shareholders of record as of that day. Dividends and distributions to shareholders of the other accounts 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. generally accepted accounting principles. These differences are primarily due to differing treatments for net operating losses, mortgage-backed securities, certain defaulted securities, expiring capital loss carry forwards, certain preferred securities, redemptions-in-kind, amortization of premiums and discounts, futures contracts, sales of Passive Foreign Investment Companies, losses deferred due to wash sales, swap agreements, and foreign currency transactions. Permanent book and tax basis differences are reclassified within the capital accounts based on federal tax-basis treatment; temporary differences do not require reclassification. Distributions which exceed current and accumulated earnings and profits for federal income tax purposes are reported as return of capital distributions.

Real Estate Securities Account receives distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the Account. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates must be used in reporting the character of income and distributions for financial statement purposes.

46

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

2. Significant Accounting Policies (Continued)

Federal Income Taxes. No provision for federal income taxes is considered necessary because each account is qualified 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 Accounts’ 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 period ended June 30, 2015, the Accounts did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years from 2011-2014. No examinations are in progress at this time.

Foreign Taxes. Certain of the Accounts are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Accounts as a reduction of income. These amounts are shown as withholding tax on foreign dividends on the statements of operations.

Gains realized upon disposition of certain foreign securities held by the Accounts may be subject to capital gains tax, payable prior to repatriation of sale proceeds. The tax is computed on certain net realized gains and, if any, is shown on the statement of operations. Realized losses in excess of gains may be carried forward to offset future gains. In addition, the Accounts accrue an estimated deferred tax liability for future gains on certain foreign securities. Any accrued tax liability is shown on the statement of assets and liabilities. At June 30, 2015, Diversified International Account had no foreign tax refund receivable and had a deferred tax liability of $26,000 and International Emerging Markets Account had no foreign tax refund receivable and had a deferred tax liability of $27,000, relating to foreign securities.

3. Operating Policies

Borrowings. Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Accounts and other registered investment companies managed by the Manager may participate in an interfund lending facility (“Facility”). The Facility allows the Accounts 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%). During the period ended June 30, 2015, Diversified International Account, International Emerging Markets Account, LargeCap Value Account, MidCap Account, Real Estate Securities Account, Short-Term Income Account, and SmallCap Blend Account each borrowed from the Facility. Balanced Account, Bond & Mortgage Securities Account, Bond Market Index Account, Diversified International Account, Equity Income Account, Government & High Quality Bond Account, Income Account, LargeCap Growth Account I, LargeCap S&P 500 Index Account, LargeCap S&P 500 Managed Volatility Index Account, Real Estate Securities Account, and SmallCap Blend Account each loaned to the Facility. The interest expense associated with these borrowings is included in other expenses on the statements of operations. The interest received is included in interest on the statements of operations.

In addition, the Accounts 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 $75 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 plus 1.00%. Additionally, a commitment fee is charged at an annual rate of .10% on the amount of the line of credit. The Accounts did not borrow against the line of credit during the period ended June 30, 2015.

47

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

Counterparties. The Accounts may be exposed to counterparty risk, or the risk that another party with which the Accounts have unsettled or open transactions will fail to perform on their commitment. To the extent that unpaid amounts owed to the Accounts exceed a predetermined threshold agreed to with the counterparty, such counterparty shall advance collateral to the Accounts in the form of cash or cash equivalents equal in value to the unpaid amount owed to the Accounts. If the unpaid amount owed to the Accounts subsequently decreases, the Accounts would be required to return all or a portion of the collateral.

Master Agreements may also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions governed under the relevant master agreement with a counterparty exceeds a specified threshold.

The financial instruments that are subject to Master 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 also include collateral provisions. Collateral received and pledged are generally settled daily with each counterparty.

Foreign Currency Contracts. Certain of the Accounts may be subject to foreign currency exchange rate risk in the normal course of pursuing such Account’s investment objectives. The Accounts may use foreign currency contracts to gain exposure to, or hedge against changes in the value of foreign currencies. Certain of the Accounts enter into forward contracts to purchase and sell foreign currencies at a specified future date at a fixed exchange rate. Forward foreign currency contracts are valued at the forward rate, and are marked-to-market daily. The change in fair value is recorded by the Accounts as an unrealized gain or loss. When the contract is closed, the Accounts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of forward foreign currency contracts does not eliminate the fluctuations in underlying prices of the Accounts’ portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts 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 Accounts could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the currency changes unfavorably to the U.S. dollar.

Futures Contracts. The Accounts 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 Accounts (with the exception of Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Income Account, Money Market Account, Principal LifeTime Accounts, and SAM Portfolios) may enter into futures contracts 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 contracts, an account 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 account as a variation margin receivable or payable on financial derivative instruments. During the period the futures contracts are open, daily changes in the fair value of the contracts are recognized as unrealized gains or losses. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments on the statements of assets and liabilities. When the contracts are closed, the account recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the account’s cost basis in the contract. There is minimal counterparty credit risk to the Accounts because futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

48

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

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 Accounts has valued the investments. This may have an adverse effect on each of the Accounts’ ability to dispose of particular illiquid securities at fair value and may limit each of the Accounts’ ability to obtain accurate market quotations for purposes of valuing the securities.

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 contracts 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.

Joint Trading Account. Certain of the Accounts may, pursuant to an exemptive order issued by the Securities and Exchange Commission, transfer uninvested funds into a joint trading account. The order permits the participating accounts’ cash balances to be deposited into a single joint account along with the cash of other registered investment companies managed by the Manager. These balances may be invested in one or more short-term instruments or repurchase agreements that are collateralized by U.S. government securities. Earnings from the joint trading account are allocated to each of the Accounts based on their pro rata participating ownership interest in the joint trading account.

Mortgage Dollar Rolls. Certain of the Accounts have entered into mortgage-dollar-roll transactions on “to-be-announced” securities (“TBA’s”), in which the Account sells mortgage-backed securities and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are invested in additional securities. The Account forgoes principal and interest paid on the securities, and is compensated by interest earned on the proceeds of the initial sale and by a lower price on the securities to be repurchased. The Accounts treat mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the Accounts' portfolio turnover ratio. Amounts to be received or paid in connection with open mortgage-dollar-rolls are included in Investment securities sold and Investment securities purchased on the statements of assets and liabilities.

Options Contracts. During the period LargeCap S&P 500 Managed Volatility Index Account wrote call and put options on indices it owns or in which it 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 contracts 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 index to determine the realized gain or loss. A fund, as a writer of an option, has no control over whether the underlying index may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the index 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. 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 index transaction to determine the realized gain or loss. Details of options contracts open at year end are included in the Funds' schedules of investments. Transactions in options written during the period ended June 30, 2015, were as follows:

LargeCap S&P 500 Managed Volatility Index Account	Number of Contracts				Premium (thousands)
Beginning of period	65		$		14
Options written	5,950				4,239
Options expired	(3,755	)			(2,292	)
Options closed	(1,870	)			(1,434	)
Options exercised	—				—
Balance at end of period	390			$	527

49

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

Rebates. Subject to best execution, the Accounts may direct certain portfolio transactions to brokerage firms that, in turn, have agreed to rebate a portion of the related brokerage commission to the account in cash. Commission rebates are included as a component of realized gain from investment transactions in the statements of operations.

Repurchase Agreements. The Accounts may invest in repurchase agreements that are fully collateralized, typically by U.S. government or U.S. government agency securities. It is the Accounts’ policy that its 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 Accounts 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 Accounts could experience delays in the realization of the collateral.

Restricted Securities. Certain of the Accounts 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.

Securities Lending. To earn additional income, certain of the Accounts may lend portfolio securities to approved brokerage firms. The Accounts 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 loaned securities. The market value of the loaned securities is determined at the close of business of the Accounts and any additional required collateral is delivered to the Accounts on the next business day. The cash collateral received is usually invested in an SEC-registered money market mutual fund and the Accounts could realize a loss on such investments. Further, the Accounts could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium received for lending certain types of securities. Security lending income is shown in each account’s statement of operations. As of June 30, 2015, the Accounts had no securities on loan.

Senior Floating Rate Interests. The Accounts may invest in senior floating rate interests (bank loans). Senior floating rate interests hold the most senior position in the capital structure of a business entity (the “Borrower”), are typically 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. 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 account 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 London InterBank Offered Rate (LIBOR) or the prime rate offered by one or more major United States banks.

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.

In connection with the Senior floating rate interests, the Accounts may also enter into unfunded loan commitments (“commitments”). All or a portion of the commitments may be unfunded. The Accounts are obligated to fund these commitments at the borrower’s discretion. Therefore, the Accounts must have funds sufficient to cover its contractual obligation. These unfunded loan commitments which are marked to market daily, are footnoted in the schedules of investments, shown as a separate line item called unrealized gain or loss on unfunded loan commitments on the statements of assets and liabilities. As of June 30, 2015, the Accounts had no unfunded loan commitments outstanding.

50

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

Short Sales. Bond Market Index Account entered into short sales transactions during the period. A short sale is a transaction in which an account 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 account 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 statement of assets and liabilities. The account 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 appear as dividends and interest on shorts on the statement of operations. An account 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 account 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 statement of assets and liabilities and securities segregated as collateral are footnoted in the schedule of investments. The account 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 statement of operations.

Swap Agreements. Bond & Mortgage Securities Account invested in swap agreements during the period. Swap agreements are privately negotiated agreements between an Account 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. An Account may enter into credit default, interest rate, or total return swap agreements to manage its exposure to credit, interest rate, or market risk. The Accounts are subject to interest rate and credit risk in the normal course of pursuing their investment objectives. 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; changes in value are recorded as unrealized gain or loss. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments on the statements of assets and liabilities.

Upon termination of swap agreements, the Accounts 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, that 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 Accounts and any counterparty are required to maintain an agreement that requires the Accounts and that counterparty to monitor the net fair value of all derivative transactions entered into pursuant to the contract between the Accounts and such counterparty. If the net fair value of such derivatives transactions between the Accounts and that counterparty exceeds a certain threshold (as defined in the agreement), the Accounts or the counterparty are required to post cash and/or securities as collateral. Fair values of derivatives transactions presented in the financial statements are not netted with the fair values of other derivatives transactions or with any collateral amounts posted by the Accounts 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, an Account would add leverage to its portfolio because, in addition to its total net assets, an Account would be subject to investment exposure on the notional amount of the swap.

51

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

If an account is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the account 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 an Account is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, an Account 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. An Account may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds with a credit default swap on indices which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit-default swap on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

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 an Account 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 June 30, 2015 for which an Account 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 an Account for the same referenced entity or entities.

Interest rate swaps involve the commitment to exchange cash flows based on changes in the value of a specific reference security or basket of securities.

To Be Announced Securities. The Accounts may trade portfolio securities on a “to-be-announced” (“TBA”) or when-issued basis. In a TBA or when-issued transaction, the account commits 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 account, 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. The performance and risks of each Principal LifeTime Account, SAM Portfolio, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, and Diversified Income Account (singly, “a fund of funds” and collectively, “the funds of funds”) directly correspond to the performance and risks of the underlying funds in which the fund of funds invest. By investing in many underlying funds, the funds of funds have partial exposure to the risks of many different areas of the market. The more a fund of funds allocates to stock funds, the greater the expected risk.

52

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

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 Principal LifeTime Accounts, SAM Portfolios, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Income Account, and each of the underlying funds. Principal Global Investors, LLC ("PGI") is Sub-Advisor to the Principal LifeTime Accounts and Edge Asset Management, Inc. ("Edge") is the Sub-Advisor to the SAM Portfolios. Either PGI or Edge also serves as Sub-Advisor to some or all of the underlying funds. The Manager, PGI, and Edge are committed to minimizing the potential impact of underlying fund risk on underlying funds 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.

As of June 30, 2015, the Principal LifeTime Accounts, SAM Portfolios, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, and Diversified Income Account owned the following percentages, in the aggregate, of the outstanding shares of the underlying funds listed below:

	Total Percentage			Total Percentage
	of Outstanding			of Outstanding
Account	Shares Owned		Account	Shares Owned
Bond & Mortgage Securities Account	25.93	%	Income Account	96.24	%
Bond Market Index Account	99.90		LargeCap S&P 500 Index Account	90.50
Diversified International Account	24.00		LargeCap S&P 500 Managed Volatility Index Account	100.00
Equity Income Account	35.73		MidCap Account	13.05
Government & High Quality Bond Account	41.18		Short-Term Income Account	39.28

U.S. Government Agencies or Government-Sponsored Enterprises. Certain of the Accounts 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 Accounts’ 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 related guarantors (those not backed by the full faith and credit of the United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC”). FNMA is a government sponsored corporation the common stock of which is owned entirely by private stockholders. 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 FNMA are guaranteed as to the timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. 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.

53

NOTES TO FINANCIAL STATEMENTS

PRINCIPAL VARIABLE CONTRACTS FUNDS,INC. June 30, 2015 (unaudited)

3. Operating Policies (Continued)

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 shown in thousands):

	Asset Derivatives June 30, 2015			Liability Derivatives June 30, 2015
Derivatives not accounted for			Fair			Fair
as hedging instruments	Statement of Assets and Liabilities Location		Value	Statement of Assets and Liabilities Location		Value
Balanced Account
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—        Payables, Net Assets Consist of Net unrealized		$	1	*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Bond & Mortgage Securities Account
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	—        Payables, Net Assets Consist of Net unrealized		$	167
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	—        Payables, Net Assets Consist of Net unrealized		$	105	*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
	Total $		—		$	272
LargeCap Growth Account I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—        Payables, Net Assets Consist of Net unrealized		$	144	*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap S&P 500 Index Account
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—        Payables, Net Assets Consist of Net unrealized		$	626	*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap S&P 500 Managed Volatility Index Account
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	880 Payables, Net Assets Consist of Net unrealized		$	854	*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
SmallCap Blend Account
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—        Payables, Net Assets Consist of Net unrealized		$	6	*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments

*Includes cumulative unrealized appreciation/depreciation of futures contracts 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.

						Change in Unrealized
	Location of Gain or (Loss)			Realized Gain or (Loss)		Appreciation/(Depreciation) of
Derivatives not accounted for	on Derivatives Recognized			on Derivatives Recognized		Derivatives Recognized in Statement
as hedging instruments	in Statement of Operations			in Statement of Operations		of Operations
Balanced Account
Equity contracts	Net realized gain (loss) from Futures		$	4		$	(1	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
Bond & Mortgage Securities Account
Credit contracts	Net realized gain (loss) from Swap		$	6		$	(190	)
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Interest rate contracts	Net realized gain (loss) from Futures		$	(214	)	$	(135	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
		Total	$	(208	)	$	(325	)

54

	NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
	June 30, 2015 (unaudited)
3. Operating Policies (Continued)
				Change in Unrealized
	Location of Gain or (Loss)		Realized Gain or (Loss)	Appreciation/(Depreciation) of
Derivatives not accounted for	on Derivatives Recognized		on Derivatives Recognized	Derivatives Recognized in Statement
as hedging instruments	in Statement of Operations		in Statement of Operations	of Operations
LargeCap Growth Account I
Equity contracts	Net realized gain (loss) from Futures	$	275	$	(203	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap S&P 500 Index Account
Equity contracts	Net realized gain (loss) from Futures	$	2,241	$	(1,411	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap S&P 500 Managed Volatility Index Account
Equity contracts	Net realized gain (loss) from Investment	$	144	$	(135	)
	transactions, Futures contracts, and Options
	and swaptions/Change in unrealized
	appreciation/(depreciation) of Investments,
	Futures contract, and Options and swaptions
LargeCap Value Account
Equity contracts	Net realized gain (loss) from Futures	$	64	$	(78	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap Blend Account
Equity contracts	Net realized gain (loss) from Futures	$	79	$	(44	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts

Long equity futures contracts are used to obtain market exposure for the cash balances that are maintained by certain of the Accounts and the notional values of the futures contracts will vary in accordance with the changing cash balances. Long and short U.S. Treasury futures contracts are used to obtain interest rate exposure in order to manage duration of the Bond & Mortgage Securities Account. The level of derivative activity disclosed in the schedules of investments is representative of the level of derivative activity used in the Accounts throughout the period ended June 30, 2015.

55

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

4. Fair Value

Fair value is defined as the price that the Accounts 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 Accounts use various valuation approaches, including market, income and/or cost approaches. A hierarchy for inputs 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 Accounts. Unobservable inputs are inputs that reflect the Accounts own assumptions about the assumptions 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. The type of securities included in Level 1 includes listed equities and listed derivatives.

Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayments speeds, credit risk, etc.). Investments which are generally included in this category include corporate bonds, senior floating rate interests, and municipal bonds.

Level 3 – Significant unobservable inputs (including the Accounts’ assumptions in determining the fair value of investments). Investments which are generally included in this category include certain corporate bonds and certain mortgage backed securities.

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 Accounts 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.

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 Account’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Accounts use prices and inputs that are current as of the measurement date.

Investments which are generally included in the Level 3 category are primarily valued using 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 such as prepayment rates, probability of default, or loss severity in the event of default. Significant increases in any of those inputs in isolation would result in a significantly lower fair value measurement.

The fair values of these entities are dependent on economic, political and other considerations. The values of the investments may be affected by significant changes in the economic conditions, changes in government policies, and other factors (e.g., natural disasters, accidents, conflicts, etc.).

Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Account’s Board of Directors. The Manager has established a Valuation Committee of senior officers and employees, with the responsibility of overseeing the pricing and valuation of all securities, including securities where market quotations are not readily available. The Valuation Committee meets monthly and reports directly to the Board of Directors. The Pricing Group who reports to the Valuation Committee relies on the established Pricing Policies to determine fair valuation. Included in the Pricing Policies is an overview of the approved valuation technique established for each asset class. The Pricing Group will consider all appropriate information available when determining fair valuation.

56

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

4. Fair Value (Continued)

The Pricing Group relies on externally provided valuation inputs to determine the value of Level 3 securities. Security values are updated as new information becomes available. Valuation data and changes in valuation amounts are reviewed on a daily basis based on specified criteria for the security, asset class, and other factors. In addition, valuation data is periodically compared to actual transactions executed by the Accounts (i.e., purchases/sales) and differences between transaction prices and prior period valuation data are investigated based on specified tolerances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments. For example, short-term securities held in Money Market Account are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of these securities, but because the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The beginning of the period timing recognition has been adopted for the significant transfers between levels of each Account’s assets and liabilities. There were no significant purchases, sales, or transfers into or out of Level 3, except as noted in the Level 3 roll forward. The table below includes transfers from Level 1 to Level 2 as of June 30, 2015 due to lack of exchange traded valuation data; however observable market inputs were available to support these valuations:

International Emerging Markets Account

$ 3,535,067

The following is a summary of the inputs used as of June 30, 2015 in valuing the Funds' securities carried at value (amounts shown in thousands):

				Level 2 - Other
		Level 1 - Quoted		Significant Observable		Level 3 - Significant
Account		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)
Balanced Account
Bonds	$	—	$	10,931	$	20	$	10,951
Common Stocks
Basic Materials		420		—		—		420
Communications		2,550		—		—		2,550
Consumer, Cyclical		3,464		—		—		3,464
Consumer, Non-cyclical		7,009		6		—		7,015
Energy		2,407		—		—		2,407
Financial		5,801		—		—		5,801
Industrial		2,520		—		—		2,520
Technology		4,656		—		—		4,656
Utilities		1,106		—		—		1,106
Investment Companies		53		—		—		53
Senior Floating Rate Interests		—		44		—		44
U.S. Government & Government Agency Obligations		—		8,219		—		8,219
Total investments in securities $		29,986	$	19,200	$	20	$	49,206
Liabilities
Equity Contracts**
Futures	$	(1)	$	—	$	—	$	(1	)
Bond & Mortgage Securities Account
Bonds	$	—	$	202,910	$	—	$	202,910
Convertible Bonds		—		99		—		99
Investment Companies		14,350		—		—		14,350
Preferred Stocks
Communications		131		—		—		131
Financial		1,152		91		—		1,243
Senior Floating Rate Interests		—		13,729		—		13,729
U.S. Government & Government Agency Obligations		—		104,446		—		104,446
Total investments in securities $		15,633	$	321,275	$	—	$	336,908
Liabilities
Credit Contracts**
Exchange Cleared Credit Default Swaps	$	—	$	(167)	$	—	$	(167	)
Interest Rate Contracts**
Futures	$	(105)	$	—	$	—	$	(105	)

57

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
				Level 2 - Other
		Level 1 - Quoted	Significant Observable				Level 3 - Significant
Account		Prices		Inputs			Unobservable Inputs		Totals (Level 1,2,3)
Bond Market Index Account
Bonds	$	—	$	656,250		$	—	$	656,250
Investment Companies		195,620		—			—		195,620
Municipal Bonds		—		16,455			—		16,455
U.S. Government & Government Agency Obligations		—		1,218,627			—		1,218,627
Total investments in securities $		195,620	$	1,891,332		$	—	$	2,086,952
Short Sales
U.S. Government & Government Agency Obligations	$	—	$	(323	)	$	—	$	(323	)
Total Short Sales $		—	$	(323	)	$	—	$	(323	)
Diversified Balanced Account
Investment Companies	$	1,040,606	$	—		$	—	$	1,040,606
Total investments in securities $		1,040,606	$	—		$	—	$	1,040,606
Diversified Balanced Managed Volatility Account
Investment Companies	$	122,695	$	—		$	—	$	122,695
Total investments in securities $		122,695	$	—		$	—	$	122,695
Diversified Growth Account
Investment Companies	$	3,099,509	$	—		$	—	$	3,099,509
Total investments in securities $		3,099,509	$	—		$	—	$	3,099,509
Diversified Growth Managed Volatility Account
Investment Companies	$	214,444	$	—		$	—	$	214,444
Total investments in securities $		214,444	$	—		$	—	$	214,444
Diversified Income Account
Investment Companies	$	179,271	$	—		$	—	$	179,271
Total investments in securities $		179,271	$	—		$	—	$	179,271
Diversified International Account
Common Stocks
Basic Materials	$	1,753	$	17,112		$	—	$	18,865
Communications		1,456		41,336			—		42,792
Consumer, Cyclical		15,335		48,681			—		64,016
Consumer, Non-cyclical		3,576		60,240			—		63,816
Energy		6,536		11,447			—		17,983
Financial		23,287		81,971			—		105,258
Industrial		7,149		44,073			—		51,222
Technology		1,245		16,675			—		17,920
Utilities		1,382		12,073			—		13,455
Investment Companies		1,925		—			—		1,925
Total investments in securities $		63,644	$	333,608		$	—	$	397,252
Equity Income Account
Common Stocks*	$	578,296	$	—		$	—	$	578,296
Investment Companies		9,561		—			—		9,561
Total investments in securities $		587,857	$	—		$	—	$	587,857

58

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
				Level 2 - Other
		Level 1 - Quoted	Significant Observable			Level 3 - Significant
Account		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)
Government & High Quality Bond Account
Bonds	$	—	$	96,882	$	—	$	96,882
Investment Companies		2,428		—		—		2,428
U.S. Government & Government Agency Obligations		—		203,366		—		203,366
	Total investments in securities $	2,428	$	300,248	$	—	$	302,676
Income Account
Bonds	$	—	$	165,093	$	2,238	$	167,331
Common Stocks*		—		—		—		—
Convertible Bonds		—		3,671		—		3,671
Investment Companies		14,880		—		—		14,880
Senior Floating Rate Interests		—		454		—		454
U.S. Government & Government Agency Obligations		—		89,827		—		89,827
	Total investments in securities $	14,880	$	259,045	$	2,238	$	276,163
International Emerging Markets Account
Common Stocks
Basic Materials	$	332	$	3,413	$	—	$	3,745
Communications		3,084		12,580		—		15,664
Consumer, Cyclical		1,077		10,397		—		11,474
Consumer, Non-cyclical		3,823		4,810		—		8,633
Diversified		—		319		—		319
Energy		2,944		4,748		—		7,692
Financial		3,212		24,488		—		27,700
Industrial		1,852		5,597		—		7,449
Technology		358		12,294		—		12,652
Utilities		—		4,606		—		4,606
Investment Companies		1,130		—		—		1,130
Preferred Stocks
Communications		—		419		—		419
Energy		—		439		—		439
Financial		—		2,105		—		2,105
	Total investments in securities $	17,812	$	86,215	$	—	$	104,027
LargeCap Growth Account
Common Stocks*	$	123,785	$	—	$	—	$	123,785
Investment Companies		1,620		—		—		1,620
	Total investments in securities $	125,405	$	—	$	—	$	125,405

59

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
				Level 2 - Other
		Level 1 - Quoted		Significant Observable			Level 3 - Significant
Account		Prices		Inputs			Unobservable Inputs		Totals (Level 1,2,3)
LargeCap Growth Account I
Common Stocks
Basic Materials	$	4,938		$	—	$	—	$	4,938
Communications		42,067			27		28		42,122
Consumer, Cyclical		28,914			—		—		28,914
Consumer, Non-cyclical		75,091			—		—		75,091
Energy		7,706			—		—		7,706
Financial		21,605			—		—		21,605
Industrial		24,779			—		—		24,779
Technology		32,907			—		—		32,907
Utilities		29			—		—		29
Convertible Preferred Stocks
Communications		—			191		581		772
Investment Companies		6,508			—		—		6,508
Preferred Stocks
Communications		—			—		140		140
	Total investments in securities $	244,544		$	218	$	749	$	245,511
Liabilities
Equity Contracts**
Futures	$	(144	)	$	—	$	—	$	(144	)
LargeCap S&P 500 Index Account
Common Stocks*	$	1,928,998		$	—	$	—	$	1,928,998
Investment Companies		44,583			—		—		44,583
	Total investments in securities $	1,973,581		$	—	$	—	$	1,973,581
Liabilities
Equity Contracts**
Futures	$	(626	)	$	—	$	—	$	(626	)
LargeCap S&P 500 Managed Volatility Index Account
Common Stocks*	$	123,611		$	—	$	—	$	123,611
Investment Companies		14,376			—		—		14,376
Purchased Options		880			—		—		880
	Total investments in securities $	138,867		$	—	$	—	$	138,867
Liabilities
Equity Contracts**
Futures	$	(106	)	$	—	$	—	$	(106	)
Options		(748	)		—		—		(748	)
LargeCap Value Account
Common Stocks*	$	161,104		$	—	$	—	$	161,104
Investment Companies		160			—		—		160
	Total investments in securities $	161,264		$	—	$	—	$	161,264
MidCap Account
Common Stocks*	$	686,667		$	—	$	—	$	686,667
Investment Companies		965			—		—		965
	Total investments in securities $	687,632		$	—	$	—	$	687,632

60

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
				Level 2 - Other
		Level 1 - Quoted	Significant Observable			Level 3 - Significant
Account		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)
Money Market Account
Bonds	$	—	$	21,153	$	—	$	21,153
Certificate of Deposit		—		7,000		—		7,000
Commercial Paper		—		201,995		—		201,995
Investment Companies		16,700		—		—		16,700
Municipal Bonds		—		19,170		—		19,170
Repurchase Agreements		—		5,040		—		5,040
	Total investments in securities $	16,700	$	254,358	$	—	$	271,058
Principal Capital Appreciation Account
Common Stocks*	$	171,597	$	—	$	—	$	171,597
Investment Companies		3,892		—		—		3,892
	Total investments in securities $	175,489	$	—	$	—	$	175,489
Principal LifeTime 2010 Account
Investment Companies	$	45,749	$	—	$	—	$	45,749
	Total investments in securities $	45,749	$	—	$	—	$	45,749
Principal LifeTime 2020 Account
Investment Companies	$	205,287	$	—	$	—	$	205,287
	Total investments in securities $	205,287	$	—	$	—	$	205,287
Principal LifeTime 2030 Account
Investment Companies	$	118,730	$	—	$	—	$	118,730
	Total investments in securities $	118,730	$	—	$	—	$	118,730
Principal LifeTime 2040 Account
Investment Companies	$	46,457	$	—	$	—	$	46,457
	Total investments in securities $	46,457	$	—	$	—	$	46,457
Principal LifeTime 2050 Account
Investment Companies	$	23,080	$	—	$	—	$	23,080
	Total investments in securities $	23,080	$	—	$	—	$	23,080
Principal LifeTime 2060 Account
Investment Companies	$	1,950	$	—	$	—	$	1,950
	Total investments in securities $	1,950	$	—	$	—	$	1,950
Principal LifeTime Strategic Income Account
Investment Companies	$	28,850	$	—	$	—	$	28,850
	Total investments in securities $	28,850	$	—	$	—	$	28,850
Real Estate Securities Account
Common Stocks*	$	151,638	$	—	$	—	$	151,638
Investment Companies		2		—		—		2
	Total investments in securities $	151,640	$	—	$	—	$	151,640
SAM Balanced Portfolio
Investment Companies	$	897,222	$	—	$	—	$	897,222
	Total investments in securities $	897,222	$	—	$	—	$	897,222

61

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
					Level 2 - Other
		Level 1 - Quoted		Significant Observable			Level 3 - Significant
Account		Prices			Inputs		Unobservable Inputs		Totals (Level 1,2,3)
SAM Conservative Balanced Portfolio
Investment Companies	$	221,611		$	—	$	—	$	221,611
	Total investments in securities $	221,611		$	—	$	—	$	221,611
SAM Conservative Growth Portfolio
Investment Companies	$	308,148		$	—	$	—	$	308,148
	Total investments in securities $	308,148		$	—	$	—	$	308,148
SAM Flexible Income Portfolio
Investment Companies	$	234,321		$	—	$	—	$	234,321
	Total investments in securities $	234,321		$	—	$	—	$	234,321
SAM Strategic Growth Portfolio
Investment Companies	$	244,748		$	—	$	—	$	244,748
	Total investments in securities $	244,748		$	—	$	—	$	244,748
Short-Term Income Account
Bonds	$	—		$	241,145	$	5,641	$	246,786
Investment Companies		6,984			—		—		6,984
U.S. Government & Government Agency Obligations		—			540		—		540
	Total investments in securities $	6,984		$	241,685	$	5,641	$	254,310
SmallCap Blend Account
Common Stocks
Basic Materials	$	1,893		$	—	$	—	$	1,893
Communications		11,127			3		—		11,130
Consumer, Cyclical		38,943			—		—		38,943
Consumer, Non-cyclical		55,180			176		—		55,356
Energy		7,450			—		—		7,450
Financial		56,360			—		—		56,360
Industrial		26,288			—		—		26,288
Technology		30,140			—		—		30,140
Utilities		6,256			—		—		6,256
Investment Companies		4,467			—		—		4,467
	Total investments in securities $	238,104		$	179	$	—	$	238,283
Liabilities
Equity Contracts**
Futures	$	(6	)	$	—	$	—	$	(6	)
*For additional detail regarding sector classifications, please see the Schedules of Investments
**Exchange Cleared Swaps and Futures are valued at the unrealized appreciation/(depreciation) of the instrument.

62

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

4. Fair Value (Continued)

Certain detailed information is provided for those Accounts with significant investments in Level 3 securities. Quantitative information about the significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy is as follows (amounts in thousands):

			Fair Value
	Asset		at June 30,		Unobservable
Account	Type		2015	Valuation Technique	input		Input Value
Short-Term Income Account	Bonds	$	700	Indicative Market Quotations	Broker Quote	$	99.97
	Bonds		4,941	Third Party Vendor	Broker Quote		99.91 - 100.53
		$	5,641

The changes in investments measured at fair value for which Level 3 inputs have been used to determine fair value are as follows (amounts in thousands):

					Accrued
					Discounts/
					Premiums													Net Change in Unrealized
		Value	Realized		and Change				Proceeds			Transfers		Transfers		Value		Appreciation/(Depreciation)
		December	Gain/		in Unrealized				from			into Level		Out of		June 30,		on Investments Held at
Account		31, 2014	(Loss)		Gain/(Loss)		Purchases		Sales			3*		Level 3**		2015		June 30, 2015
Short-Term Income Account
Bonds	$	2,909	$ —	$	8	$	3,750	$	(126	)	$	—	$	(900	) $	5,641	$	8
	$	2,909	$ —	$	8	$	3,750	$	(126	)	$	—	$	(900	) $	5,641	$	8

*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 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 Accounts 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.

63

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

5. Management Agreement and Transactions with Affiliates

Management Services. The Fund has agreed to pay investment advisory and management fees to the Manager (wholly owned by Principal Financial Services, Inc.) computed at an annual percentage rate of each account’s average daily net assets. A portion of the management fee is paid by Principal Management Corporation to the sub-advisor of each of the Accounts, some of which are affiliates of the Manager. The annual rate paid by Principal LifeTime Accounts is .03% of each of the Principal LifeTime Accounts’ average net assets. The annual rate paid by the SAM Portfolios is based upon the aggregate average daily net assets (“aggregate net assets”) of the SAM Portfolios. The investment advisory and management fee schedule for the SAM Portfolios is .25% of aggregate net assets up to the first $1 billion and .20% of aggregate net assets over $1 billion. The annual rates used in this calculation for each of the other Accounts are as follows:

				Net Assets of Accounts (in millions)
	First $100		Next $	100		Next $	100		Next $100	Thereafter
Balanced Account	.60	%		.55%			.50%		.45%	.40%
Bond & Mortgage Securities Account	.50			.45			.40		.35	.30
Equity Income Account	.60			.55			.50		.45	.40
LargeCap Growth Account I	.80			.75			.70		.65	.60
MidCap Account	.65			.60			.55		.50	.45
Money Market Account	.50			.45			.40		.35	.30
Real Estate Securities Account	.90			.85			.80		.75	.70
SmallCap Blend Account	.85			.80			.75		.70	.65
				Net Assets of Accounts (in millions)
	First $250		Next $	250		Next $	250		Next $250	Thereafter
Diversified International Account	.85	%		.80%			.75%		.70%	.65%
International Emerging Markets Account	1.25			1.20			1.15		1.10	1.05
LargeCap Value Account	.60			.55			.50		.45	.40
	Net Assets of Account (in millions)
	First			Next			Over
	$200			$300			$500
Short-Term Income Account	.50	%		.45	%		.40	%
	Net Assets of Account (in millions)
	First $500		Over $	500
Principal Capital Appreciation Account	.625%			.50%
				Net Assets of Account
	First $500		Next $	500		Next $	1		Next $1	Over $3
	million			million			billion		billion	billion
LargeCap Growth Account	.68%			.63%			.61%		.56%	.51%
	Net Assets of Accounts (in billions)
	First $2		Over $	2
Government & High Quality Bond Account	.50	%		.45%
Income Account	.50			.45

64

NOTES TO FINANCIAL STATEMENTS

PRINCIPAL VARIABLE CONTRACTS FUNDS,INC. June 30, 2015 (unaudited)

5. Management Agreement and Transactions with Affiliates (Continued)

	All Net Assets
Bond Market Index Account	.25	%
Diversified Balanced Account	.05
Diversified Balanced Managed Volatility Account	.05
Diversified Growth Account	.05
Diversified Growth Managed Volatility Account	.05
Diversified Income Account	.05
LargeCap S&P 500 Index Account	.25
LargeCap S&P 500 Managed Volatility Index Account	.45

The Manager has contractually agreed to limit the Account’s management and investment advisory fees for certain of the Accounts through the period ended April 30, 2016. The expense limit will reduce the Account’s management and investment advisory fees by the following amounts:

LargeCap Growth Account I

.016%

The Manager has contractually agreed to limit the expenses (excluding interest the Accounts incur in connection with investments they make) for certain classes of shares of certain of the Accounts. 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 operating expense limits are as follows:

	Period from January 1, 2015 through June 30, 2015
	Class 1		Class 2		Expiration
Diversified Balanced Managed Volatility Account	N/A		.31	%	April 30, 2016
Diversified Growth Managed Volatility Account	N/A		.31		April 30, 2016
LargeCap S&P 500 Managed Volatility Index Account	.49	%	N/A		April 30, 2016
Principal LifeTime 2060 Account	.13		N/A		April 30, 2016

The Manager has contractually agreed to reduce Short-Term Income Account’s expenses by .01% through the period ended April 30, 2016.

In addition, the Manager has voluntarily agreed to limit the expenses (excluding interest the Accounts incur in connection with investments they make and acquired fund fees and expenses) attributable to Class 2 shares of certain of the Accounts. 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 on an annualized basis during the reporting period. The expense limit may be terminated at any time. The operating expense limits are as follows:

	Expense Limit
Diversified Balanced Account	.31	%
Diversified Growth Account	.31
Diversified Income Account	.31

In addition, the Manager has voluntarily agreed to limit Money Market Account’s expenses to the extent necessary to maintain a 0% yield. The voluntary expense limit may be terminated at any time.

Distribution and Shareholder Servicing Fees. Class 2 shares of the Accounts bear distribution fees. The fee is computed at an annual rate of the average daily net assets attributable to Class 2 shares of each of the Accounts. Distribution fees are paid to Principal Funds Distributor, Inc., the principal distributor of the Accounts. A portion of the distribution fee may be paid to other selling dealers for providing certain services. The annual rate for Class 2 shares is .25%.

Effective June 9, 2015, Principal Funds Distributor, Inc. has contractually agreed to limit Money Market Account’s distribution fees attributable to Class 2 shares through April 30, 2016. The limit will maintain the level of distribution fees not to exceed 0% for Class 2 shares. Prior to June 9, 2015, the expense limit was voluntary.

65

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

5. Management Agreement and Transactions with Affiliates (Continued)

Affiliated Ownership. At June 30, 2015, Principal Life Insurance Company (an affiliate of the Manager) and/or one or more separate accounts sponsored by Principal Life Insurance Company owned shares of the Accounts as follows (amounts in thousands):

	Class 1	Class 2
Balanced Account	2,469	N/A
Bond & Mortgage Securities Account	20,154	1
Bond Market Index Account	187	N/A
Diversified Balanced Account	N/A	71,652
Diversified Balanced Managed Volatility Account	N/A	11,194
Diversified Growth Account	N/A	198,656
Diversified Growth Managed Volatility Account	N/A	19,289
Diversified Income Account	N/A	14,823
Diversified International Account	20,010	11
Equity Income Account	12,502	35
Government & High Quality Bond Account	16,404	90
Income Account	5	—
International Emerging Markets Account	6,627	1
LargeCap Growth Account	4,344	13
LargeCap Growth Account I	8,142	—
LargeCap S&P 500 Index Account	12,650	1
LargeCap Value Account	4,789	—
MidCap Account	8,996	—
Money Market Account	267,071	1,657
Principal Capital Appreciation Account	6,341	25
Principal LifeTime 2010 Account	3,574	N/A
Principal LifeTime 2020 Account	14,638	1
Principal LifeTime 2030 Account	9,404	1
Principal LifeTime 2040 Account	3,119	1
Principal LifeTime 2050 Account	1,578	2
Principal LifeTime 2060 Account	155	N/A
Principal LifeTime Strategic Income Account	2,480	N/A
Real Estate Securities Account	7,147	58
SAM Balanced Portfolio	43,791	152
SAM Conservative Balanced Portfolio	15,530	174
SAM Conservative Growth Portfolio	8,404	249
SAM Flexible Income Portfolio	15,104	236
SAM Strategic Growth Portfolio	6,129	88
Short-Term Income Account	58,116	321
SmallCap Blend Account	15,056	40

66

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

6. Investment Transactions

For the period ended June 30, 2015, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments) by the Accounts were as follows (amounts shown in thousands):

		Purchases		Sales
Balanced Account	$	25,952	$	29,439
Bond & Mortgage Securities Account		224,791		252,308
Bond Market Index Account		930,856		823,944
Diversified Balanced Account		72,048		53,397
Diversified Balanced Managed Volatility Account		42,326		4,655
Diversified Growth Account		296,926		120,322
Diversified Growth Managed Volatility Account		68,488		7,186
Diversified Income Account		26,109		16,396
Diversified International Account		95,284		146,093
Equity Income Account		30,309		52,905
Government & High Quality Bond Account		37,532		37,133
Income Account		16,893		24,662
International Emerging Markets Account		51,171		53,331
LargeCap Growth Account		32,047		36,331
LargeCap Growth Account I		50,471		58,376
LargeCap S&P 500 Index Account		134,336		30,336
LargeCap S&P 500 Managed Volatility Index Account		39,204		2,647
LargeCap Value Account		64,656		70,384
MidCap Account		88,750		129,348
Money Market Account		—		—
Principal Capital Appreciation Account		8,771		12,483
Principal LifeTime 2010 Account		8,555		10,757
Principal LifeTime 2020 Account		43,471		53,277
Principal LifeTime 2030 Account		32,287		33,049
Principal LifeTime 2040 Account		10,022		6,974
Principal LifeTime 2050 Account		5,606		4,969
Principal LifeTime 2060 Account		1,300		203
Principal LifeTime Strategic Income Account		5,617		7,033
Real Estate Securities Account		19,045		22,547
SAM Balanced Portfolio		68,047		113,003
SAM Conservative Balanced Portfolio		16,364		20,995
SAM Conservative Growth Portfolio		39,168		38,511
SAM Flexible Income Portfolio		17,741		19,912
SAM Strategic Growth Portfolio		53,184		48,804
Short-Term Income Account		85,462		92,214
SmallCap Blend Account		57,655		59,392

In addition Bond Market Index Account had $3,961 of covers on securities sold short and $4,279 of securities sold short.

For the period ended June 30, 2015, the cost of U.S. government securities purchased and proceeds from U.S. government securities sold (not including short-term investments) by the Accounts were as follows (amounts shown in thousands):

		Purchases		Sales
Balanced Account	$	5,238	$	4,163
Bond & Mortgage Securities Account		93,949		86,291
Bond Market Index Account		637,599		554,078
Government & High Quality Bond Account		9,345		10,930
Income Account		6,446		9
Short-Term Income Account		—		3,998

67

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information

Distributions to Shareholders. The federal income tax character of distributions paid for the periods ended June 30, 2015 and December 31, 2014 were as follows (amounts in thousands):

					Long-Term
	Ordinary Income				Capital Gain
	2015		2014		2015	2014	*
Balanced Account	$	—	$877	$	— $	—
Bond & Mortgage Securities Account		—	9,821		—	—
Bond Market Index Account		—	16,426		—	—
Diversified Balanced Account		—	9,534		—	8,996
Diversified Balanced Managed Volatility Account		—	3		—	5
Diversified Growth Account		—	25,946		—	31,845
Diversified Growth Managed Volatility Account		—	16		—	28
Diversified Income Account		—	904		—	704
Diversified International Account		—	10,568		—	—
Equity Income Account		—	15,602		—	—
Government & High Quality Bond Account		—	12,602		—	—
Income Account		—	12,657		—	—
International Emerging Markets Account		—	1,021		—	—
LargeCap Growth Account		—	666		—	—
LargeCap Growth Account I		—	4,335		—	39,651
LargeCap S&P 500 Index Account		—	25,143		—	34,910
LargeCap S&P 500 Managed Volatility Index Account		—	2,074		—	1,842
LargeCap Value Account		—	3,512		—	23,015
MidCap Account		—	3,262		—	57,283
Principal Capital Appreciation Account		—	2,271		—	5,052
Principal LifeTime 2010 Account		—	1,067		—	—
Principal LifeTime 2020 Account		—	5,146		—	4,522
Principal LifeTime 2030 Account		—	2,808		—	17,044
Principal LifeTime 2040 Account		—	806		—	2,698
Principal LifeTime 2050 Account		—	471		—	1,847
Principal LifeTime 2060 Account		—	1		—	1
Principal LifeTime Strategic Income Account		—	766		—	—
Real Estate Securities Account		—	2,399		—	—
SAM Balanced Portfolio		—	29,328		—	130,737
SAM Conservative Balanced Portfolio		—	7,045		—	18,925
SAM Conservative Growth Portfolio		—	5,041		—	35,293
SAM Flexible Income Portfolio		—	9,416		—	12,090
SAM Strategic Growth Portfolio		—	4,097		—	35,588
Short-Term Income Account		—	4,274		—	—
SmallCap Blend Account		—	224		—	1,866

*The Accounts designate these distributions as long-term capital gain dividends per IRC Sec. 852(b)(3)(C).

For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.

68

NOTES TO FINANCIAL STATEMENTS

PRINCIPAL VARIABLE CONTRACTS FUNDS,INC. June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

Distributable Earnings. As of December 31, 2014, the components of distributable earnings on a federal tax basis were as follows (amounts in thousands):

				Undistributed					Net Unrealized		Other			Total
		Undistributed		Long-Term		Accumulated			Appreciation		Temporary			Accumulated
		Ordinary Income		Capital Gains		Capital Loss			(Depreciation)		Differences*			Earnings (Deficit)
Balanced Account	$	1,170	$	2,911	$	—		$	5,280	$	—		$	9,361
Bond & Mortgage Securities Account		9,625		—		(33,799	)		372		(1	)		(23,803	)
Bond Market Index Account		28,023		—		(4,301	)		21,050		—			44,772
Diversified Balanced Account		11,101		10,841		—			153,449		—			175,391
Diversified Balanced Managed Volatility Account		1,015		883		—			962		—			2,860
Diversified Growth Account		32,642		38,509		—			435,236		—			506,387
Diversified Growth Managed Volatility Account		2,235		2,037		—			1,534		—			5,806
Diversified Income Account		1,503		1,228		—			11,495		—			14,226
Diversified International Account		7,418		—		(110,806	)		56,076		—			(47,312	)
Equity Income Account		15,921		—		(5,257	)		245,356		—			256,020
Government & High Quality Bond Account		9,985		404		(22,657	)		3,618		(69	)		(8,719	)
Income Account		11,813		—		(3,382	)		14,389		(238	)		22,582
International Emerging Markets Account		1,653		—		(17,974	)		3,194		—			(13,127	)
LargeCap Growth Account		172		—		(17,319	)		26,684		—			9,537
LargeCap Growth Account I		3,091		34,615		—			63,589		(145	)		101,150
LargeCap S&P 500 Index Account		31,940		21,456		—			534,516		—			587,912
LargeCap S&P 500 Managed Volatility Index
Account		236		330		—			5,695		(2,720	)		3,541
LargeCap Value Account		8,191		12,300		—			22,663		—			43,154
MidCap Account		4,110		70,879		—			263,243		—			338,232
Money Market Account		—		—		(10	)		—		—			(10	)
Principal Capital Appreciation Account		492		2,910		—			22,080		—			25,482
Principal LifeTime 2010 Account		985		—		(1,010	)		2,878		—			2,853
Principal LifeTime 2020 Account		6,408		8,203		—			11,155		—			25,766
Principal LifeTime 2030 Account		3,343		4,150		—			8,194		—			15,687
Principal LifeTime 2040 Account		1,186		1,575		—			2,077		—			4,838
Principal LifeTime 2050 Account		786		886		—			1,389		—			3,061
Principal LifeTime 2060 Account		23		31		—			7		—			61
Principal LifeTime Strategic Income Account		608		—		(836	)		1,804		—			1,576
Real Estate Securities Account		2,494		4,828		—			54,690		—			62,012
SAM Balanced Portfolio		26,866		64,634		—			120,603		—			212,103
SAM Conservative Balanced Portfolio		7,192		10,037		—			19,834		—			37,063
SAM Conservative Growth Portfolio		6,857		19,168		—			35,098		—			61,123
SAM Flexible Income Portfolio		8,696		5,224		—			20,145		—			34,065
SAM Strategic Growth Portfolio		5,458		17,640		—			22,692		—			45,790
Short-Term Income Account		4,456		—		(16,745	)		567		(48	)		(11,770	)
SmallCap Blend Account		474		6,648		—			14,675		—			21,797
*Represents book-to-tax accounting differences.

69

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

Capital Loss Carryforwards. Capital loss carryforwards are losses that can be used to offset future capital gains of the Accounts. At December 31, 2014, the Accounts had approximate net capital loss carryforwards as follows (amounts in thousands):

Net Capital Loss Carryforward Expiring In:								No Expiration
		2016		2017		2018		Short-Term   Long-Term			Total
Bond & Mortgage Securities Account	$	10,512	$	23,287	$	—	$	—	$	— $	33,799
Bond Market Index Account		—		—		—		2,115	2,186		4,301
Diversified International Account		11,343		99,463		—		—		—	110,806
Equity Income Account		—		5,257		—		—		—	5,257
Government & High Quality Bond Account		18,770		3,887		—		—		—	22,657
Income Account		—		1,798		1,584		—		—	3,382
International Emerging Markets Account		—		16,991		—		983		—	17,974
LargeCap Growth Account		—		17,319		—		—		—	17,319
Money Market Account		6		4		—		—		—	10
Principal LifeTime 2010 Account		—		—		1,010		—		—	1,010
Principal LifeTime Strategic Income Account		—		—		836		—		—	836
Short-Term Income Account		8,447		8,298		—		—		—	16,745

Capital losses generated in taxable years beginning after the enactment date of the Regulated Investment Company Modernization Act of 2010, December 22, 2010, will be carried forward with no expiration and with the character of the loss retained. These capital losses must be fully utilized before the pre-enactment capital loss carryforwards listed in the table above.

As of December 31, 2014, the following Accounts utilized capital loss carryforwards as follows (amounts in thousands):

		Utilized
Balanced Account	$	1,064
Bond & Mortgage Securities Account		5,007
Bond Market Index Account		7,662
Diversified International Account		30,520
Equity Income Account		48,994
Government & High Quality Bond Account		756
Income Account		1,382
LargeCap Growth Account		9,406
Principal LifeTime 2010 Account		1,559
Principal LifeTime Strategic Income Account		727
Real Estate Securities Account		786
Short-Term Income Account		1,530

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 next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Account’s taxable year subsequent to October 31. For the taxable year ended December 31, 2014, the Accounts do not plan to defer any late-year losses.

70

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

Reclassification of Capital Accounts. The Accounts may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Accounts. The reclassifications are a result of permanent differences between 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 Accounts’ distributions may be shown in the accompanying Statement of Changes in Net Assets as from net investment income, from net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2014, the Accounts recorded reclassifications as follows (amounts in thousands):

		Accumulated			Accumulated
		Undistributed Net			Net Realized Gain
		Investment Income			on Investments			Paid in Capital
Balanced Account	$	22		$	(22	)	$	—
Bond & Mortgage Securities Account		314			(314	)		—
Bond Market Index Account		2,931			(2,931	)		—
Diversified International Account		1,047			(1,047	)		—
Equity Income Account		(2,048	)		2,049			(1	)
Government & High Quality Bond Account		1,198			(1,198	)		—
Income Account		647			(647	)		—
International Emerging Markets Account		100			(100	)		—
LargeCap Growth Account I		76			(76	)		—
LargeCap S&P 500 Managed Volatility Index Account		5			(5	)		—
LargeCap Value Account		2			(2	)		—
MidCap Account		1,600			(1,599	)		(1	)
Principal Capital Appreciation Account		—			(113	)		113
SmallCap Blend Account		(3	)		3			—

71

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

Federal Income Tax Basis. At June 30, 2015, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the Accounts were as follows (amounts in thousands):

		Unrealized		Unrealized			Net Unrealized			Cost for Federal
		Appreciation		(Depreciation)			Appreciation (Depreciation)			Income Tax Purposes
Balanced Account	$	4,922	$	(1,160	)	$	3,762		$	45,444
Bond & Mortgage Securities Account		2,966		(6,162	)		(3,196	)		340,104
Bond Market Index Account		14,795		(17,888	)		(3,093	)		2,090,045
Diversified Balanced Account		165,197		(1,695	)		163,502			877,104
Diversified Balanced Managed Volatility Account		2,093		(656	)		1,437			121,258
Diversified Growth Account		487,381		(11,272	)		476,109			2,623,400
Diversified Growth Managed Volatility Account		4,339		(1,374	)		2,965			211,479
Diversified Income Account		12,750		(341	)		12,409			166,862
Diversified International Account		75,664		(16,404	)		59,260			337,992
Equity Income Account		232,026		(15,358	)		216,668			371,189
Government & High Quality Bond Account		6,453		(5,512	)		941			301,735
Income Account		13,279		(3,255	)		10,024			266,139
International Emerging Markets Account		11,881		(6,710	)		5,171			98,856
LargeCap Growth Account		31,290		(1,114	)		30,176			95,229
LargeCap Growth Account I		67,551		(4,273	)		63,278			182,233
LargeCap S&P 500 Index Account		567,818		(41,542	)		526,276			1,447,305
LargeCap S&P 500 Managed Volatility Index
Account		10,280		(5,041	)		5,239			133,628
LargeCap Value Account		21,496		(5,023	)		16,473			144,791
MidCap Account		246,115		(7,407	)		238,708			448,924
Money Market Account		—		—			—			271,058
Principal Capital Appreciation Account		37,764		(4,458	)		33,306			142,183
Principal LifeTime 2010 Account		3,968		(1,029	)		2,939			42,810
Principal LifeTime 2020 Account		17,934		(6,121	)		11,813			193,474
Principal LifeTime 2030 Account		10,780		(2,148	)		8,632			110,098
Principal LifeTime 2040 Account		3,944		(987	)		2,957			43,500
Principal LifeTime 2050 Account		2,342		(485	)		1,857			21,223
Principal LifeTime 2060 Account		55		(24	)		31			1,919
Principal LifeTime Strategic Income Account		2,064		(497	)		1,567			27,283
Real Estate Securities Account		39,791		(2,015	)		37,776			113,864
SAM Balanced Portfolio		130,836		(2,773	)		128,063			769,159
SAM Conservative Balanced Portfolio		22,576		(680	)		21,896			199,715
SAM Conservative Growth Portfolio		41,622		(1,267	)		40,355			267,793
SAM Flexible Income Portfolio		20,772		(770	)		20,002			214,319
SAM Strategic Growth Portfolio		28,614		(1,800	)		26,814			217,934
Short-Term Income Account		1,841		(1,139	)		702			253,608
SmallCap Blend Account		27,018		(9,470	)		17,548			220,735
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.

72

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
COMMON STOCKS - 61.77%	Shares Held         Value (000's)			COMMON STOCKS (continued)	Shares Held     Value (000's)
Advertising - 0.09%				Biotechnology - 2.46%
WPP PLC ADR	379	$	43	Amgen Inc	4,273	$	656
				Ardelyx Inc (a)	353		6
				Avalanche Biotechnologies Inc (a)	108		2
Aerospace & Defense - 3.04%				Bellicum Pharmaceuticals Inc (a)	340		7
General Dynamics Corp	3,070		435	Charles River Laboratories International Inc	578		41
L-3 Communications Holdings Inc	3,119		354	(a)
Lockheed Martin Corp	1,492		277	CSL Ltd ADR	1,348		45
Northrop Grumman Corp	1,429		227	Epizyme Inc (a)	310		7
Safran SA ADR	1,112		19	Exact Sciences Corp (a)	565		17
Spirit AeroSystems Holdings Inc (a)	1,550		85	Genocea Biosciences Inc (a)	965		13
United Technologies Corp	690		76	Gilead Sciences Inc	3,143		368
	$		1,473	Intercept Pharmaceuticals Inc (a)	30		7
Agriculture - 1.37%				Puma Biotechnology Inc (a)	30		4
Archer-Daniels-Midland Co	6,797		328	Spark Therapeutics Inc (a)	120		7
British American Tobacco PLC ADR	442		48	Sunesis Pharmaceuticals Inc (a)	1,465		4
Bunge Ltd	510		45	Versartis Inc (a)	437		7
Japan Tobacco Inc	1,122		40		$		1,191
Philip Morris International Inc	2,510		201	Building Materials - 0.04%
	$		662	Boise Cascade Co (a)	570		21
Airlines - 0.34%
Delta Air Lines Inc	2,298		94	Chemicals - 0.63%
Ryanair Holdings PLC ADR	354		25	LyondellBasell Industries NV	2,226		230
Southwest Airlines Co	1,380		46	Sherwin-Williams Co/The	271		75
	$		165		$		305
Apparel - 0.13%				Commercial Services - 0.68%
G-III Apparel Group Ltd (a)	910		64	ABM Industries Inc	2,090		69
				KAR Auction Services Inc	1,387		52
Automobile Manufacturers - 0.15%				Korn/Ferry International	1,900		66
Toyota Motor Corp ADR	530		71	Moody's Corp	284		31
				Navigant Consulting Inc (a)	710		10
				RPX Corp (a)	2,112		36
Automobile Parts & Equipment - 1.06%				Team Health Holdings Inc (a)	760		50
Allison Transmission Holdings Inc	1,816		53	TransUnion (a)	650		16
Bridgestone Corp ADR	1,496		28		$		330
Cooper Tire & Rubber Co	1,522		51
Goodyear Tire & Rubber Co/The	1,550		47	Computers - 4.50%
Lear Corp	2,868		322	Amdocs Ltd	883		48
Valeo SA ADR	169		13	Apple Inc	10,506		1,318
	$		514	Barracuda Networks Inc (a)	730		29
				CACI International Inc (a)	600		48
Banks - 6.22%				DST Systems Inc	810		102
Bank of Montreal	502		30	Lexmark International Inc	1,560		69
Central Pacific Financial Corp	1,320		31	Manhattan Associates Inc (a)	870		52
Chemical Financial Corp	1,000		33	NetScout Systems Inc (a)	970		36
Citigroup Inc	1,340		74	Synopsys Inc (a)	2,690		136
DBS Group Holdings Ltd ADR	609		37	TDK Corp ADR	438		34
Goldman Sachs Group Inc/The	1,950		407	Western Digital Corp	3,968		311
Hanmi Financial Corp	1,073		27		$		2,183
ICICI Bank Ltd ADR	3,782		39
JP Morgan Chase & Co	8,949		606	Consumer Products - 0.08%
KeyCorp	19,881		299	Kimberly-Clark Corp	361		38
Mitsubishi UFJ Financial Group Inc ADR	4,297		31
Mizuho Financial Group Inc ADR	10,746		47	Cosmetics & Personal Care - 0.10%
Nordea Bank AB ADR	1,884		24	Procter & Gamble Co/The	640		50
PacWest Bancorp	350		16
PrivateBancorp Inc	1,130		45
Royal Bank of Canada	657		40	Diversified Financial Services - 0.32%
SunTrust Banks Inc	5,180		223	Cowen Group Inc (a)	6,950		45
Svenska Handelsbanken AB ADR	3,186		23	Investment Technology Group Inc	1,093		27
Toronto-Dominion Bank/The	916		39	Macquarie Group Ltd ADR	600		38
Wells Fargo & Co	14,940		840	ORIX Corp ADR	355		26
Wilshire Bancorp Inc	3,240		41	WisdomTree Investments Inc	900		20
Wintrust Financial Corp	1,190		64		$		156
	$		3,016
				Electric - 2.28%
				8Point3 Energy Partners LP (a)	1,900		35
Beverages - 0.72%
Ambev SA ADR	5,648		34	Avista Corp	1,741		53
Anheuser-Busch InBev NV ADR	347		42	Enel SpA ADR	7,487		34
Dr Pepper Snapple Group Inc	1,770		129	Entergy Corp	1,040		73
PepsiCo Inc	1,527		143	Iberdrola SA ADR	1,446		38
	$		348	Korea Electric Power Corp ADR	634		13
				PG&E Corp	9,937		488
				PPL Corp	3,010		89

See accompanying notes.

73

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Electric (continued)				Internet (continued)
Public Service Enterprise Group Inc	7,040	$	277	Google Inc - A Shares (a)	496	$	268
Talen Energy Corp (a)	375		6	Google Inc - C Shares (a)	593		309
	$		1,106	MaxPoint Interactive Inc (a)	1,340		11
				Tencent Holdings Ltd ADR	629		12
Electronics - 0.73%					$		667
Honeywell International Inc	2,100		214
Hoya Corp ADR	765		31	Investment Companies - 0.13%
Keysight Technologies Inc (a)	1,400		44	CK Hutchison Holdings Ltd ADR(a)	2,730		63
Murata Manufacturing Co Ltd ADR	912		40
Omron Corp ADR	607		26
				Iron & Steel - 0.07%
	$		355	Reliance Steel & Aluminum Co	530		32
Engineering & Construction - 0.33%
Dycom Industries Inc (a)	560		33
				Machinery - Construction & Mining - 0.06%
EMCOR Group Inc	1,380		66	Mitsubishi Electric Corp ADR	1,190		31
Vinci SA ADR	4,304		62
	$		161
				Media - 2.18%
Entertainment - 0.37%				Comcast Corp - Class A	9,513		572
Marriott Vacations Worldwide Corp	750		69	Gannett Co Inc (a)	2,837		40
Vail Resorts Inc	1,015		111	ITV PLC ADR	996		41
	$		180	Starz (a)	3,827		171
Food - 1.51%				TEGNA Inc	7,207		231
Cal-Maine Foods Inc	358		19		$		1,055
Gruma SAB de CV ADR	281		15	Mining - 0.08%
Kroger Co/The	7,533		546	BHP Billiton PLC ADR	330		13
Nestle SA ADR	723		52	South32 Ltd ADR(a)	3,708		25
SUPERVALU Inc (a)	3,260		26
					$		38
Tyson Foods Inc	1,774		76
	$		734	Miscellaneous Manufacturing - 0.38%
				FUJIFILM Holdings Corp ADR	1,017		36
Forest Products & Paper - 0.09%				General Electric Co	3,170		84
Clearwater Paper Corp (a)	550		31	Parker-Hannifin Corp	539		63
Stora Enso OYJ ADR	1,327		14		$		183
	$		45
				Office & Business Equipment - 0.23%
Healthcare - Products - 0.33%				Xerox Corp	10,710		114
Danaher Corp	890		76
EndoChoice Holdings Inc (a)	710		11
ICU Medical Inc (a)	300		29	Oil & Gas - 4.91%
K2M Group Holdings Inc (a)	1,400		34	Canadian Natural Resources Ltd	1,322		36
STAAR Surgical Co (a)	930		9	Carrizo Oil & Gas Inc (a)	380		19
	$		159	Chevron Corp	380		37
				Cimarex Energy Co	260		29
Healthcare - Services - 2.82%				ConocoPhillips	9,052		556
Acadia Healthcare Co Inc (a)	650		51	Denbury Resources Inc	6,484		41
Aetna Inc	2,090		266	EP Energy Corp (a)	12,734		162
Anthem Inc	2,754		452	Exxon Mobil Corp	4,870		405
Centene Corp (a)	1,360		109	Hess Corp	1,050		70
Fresenius SE & Co KGaA ADR	1,408		23	Marathon Petroleum Corp	586		31
HCA Holdings Inc (a)	3,237		294	Murphy USA Inc (a)	2,267		126
HealthSouth Corp	1,229		57	PDC Energy Inc (a)	280		15
ICON PLC (a)	284		19	Royal Dutch Shell PLC ADR	484		28
Teladoc Inc (a),(b)	320		6	RSP Permian Inc (a)	360		10
UnitedHealth Group Inc	730		89	Sanchez Energy Corp (a)	830		8
	$		1,366	Suncor Energy Inc	1,301		36
				Tesoro Corp	3,760		317
Insurance - 2.58%
American International Group Inc	1,010		62	Valero Energy Corp	7,240		453
AmTrust Financial Services Inc	800		52		$		2,379
Berkshire Hathaway Inc - Class B (a)	4,760		648
				Packaging & Containers - 0.20%
Everest Re Group Ltd	920		168	Rock-Tenn Co	1,590		96
First American Financial Corp	1,640		61
Hannover Rueck SE ADR	594		29
Hartford Financial Services Group Inc/The	850		35	Pharmaceuticals - 4.41%
Lincoln National Corp	1,040		62	AbbVie Inc	1,704		114
				Array BioPharma Inc (a)	1,550		11
MetLife Inc	910		51
Prudential PLC ADR	247		12	Bayer AG ADR	294		41
Reinsurance Group of America Inc	330		31	Cardinal Health Inc	5,517		462
				FibroGen Inc (a)	340		8
Sampo Oyj ADR	1,047		25	Herbalife Ltd (a)	956		53
Sanlam Ltd ADR	1,574		17
	$		1,253	Johnson & Johnson	690		67
				McKesson Corp	1,551		349
Internet - 1.38%				Nektar Therapeutics (a)	730		9
CDW Corp/DE	1,550		53	Nevro Corp (a)	350		19
GoDaddy Inc (a)	490		14	Novartis AG ADR	580		57

See accompanying notes.

74

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held              Value (000's)			COMMON STOCKS (continued)			Shares Held	Value (000			's)
Pharmaceuticals (continued)				Software (continued)
Novo Nordisk A/S ADR	1,516	$	83	Workiva Inc (a)			1,320		$	18
Pfizer Inc	17,033		571					$		1,871
PRA Health Sciences Inc (a)	950		35
Prestige Brands Holdings Inc (a)	1,370		63	Telecommunications - 1.62%
ProQR Therapeutics NV (a)	330		6	ARRIS Group Inc (a)			1,230			38
Proteon Therapeutics Inc (a)	620		11	AT&T Inc			1,130			40
Revance Therapeutics Inc (a)	250		8	BT Group PLC ADR			402			29
Roche Holding AG ADR	1,953		68	China Mobile Ltd ADR			384			25
Shire PLC ADR	233		56	Cisco Systems Inc			12,720			349
Teva Pharmaceutical Industries Ltd ADR	607		36	Deutsche Telekom AG ADR			1,808			31
Zafgen Inc (a)	280		10	KDDI Corp ADR			5,086			61
	$		2,137	Nippon Telegraph & Telephone Corp ADR			2,300			83
				Plantronics Inc			1,030			58
Pipelines - 0.06%				Verizon Communications Inc			1,516			71
TransCanada Corp	699		28					$		785
				Transportation - 0.41%
Real Estate - 0.32%				Canadian National Railway Co			1,244			72
Brookfield Asset Management Inc	2,824		98	Canadian Pacific Railway Ltd			204			33
Jones Lang LaSalle Inc	320		55	CH Robinson Worldwide Inc			589			37
	$		153	Matson Inc			990			41
				Navigator Holdings Ltd (a)			900			17
REITS - 2.39%
Corporate Office Properties Trust	1,250		29					$		200
Duke Realty Corp	3,529		65	TOTAL COMMON STOCKS				$		29,939
Equity Residential	3,830		269	INVESTMENT COMPANIES - 0.11%			Shares Held	Value (000			's)
Extra Space Storage Inc	3,153		206	Publicly Traded Investment Fund - 0.11%
First Industrial Realty Trust Inc	1,740		33	BlackRock Liquidity Funds FedFund Portfolio			53,282			53
Highwoods Properties Inc	1,430		57
LaSalle Hotel Properties	1,320		47	TOTAL INVESTMENT COMPANIES				$		53
QTS Realty Trust Inc	1,420		52				Principal
Regency Centers Corp	1,430		84	BONDS- 22.60	%		Amount (000's)	Value (000			's)
Simon Property Group Inc	1,559		270
Ventas Inc	780		48	Aerospace & Defense - 0.04%
	$		1,160	Air 2 US
				8.03%, 10/01/2020(b),(c)		$	18		$	20
Retail - 5.10%
Big Lots Inc	565		25
Brinker International Inc	1,304		75	Agriculture - 0.29%
CVS Health Corp	1,690		177	Altria Group Inc
Darden Restaurants Inc	3,744		266	2.63%, 01/14/2020			10			10
Foot Locker Inc	4,720		316	BAT International Finance PLC
Freshpet Inc (a)	950		18	2.75%, 06/15/2020(c)			10			10
Kohl's Corp	2,508		157	3.95%, 06/15/2025(c)			5			5
Lowe's Cos Inc	3,377		226	Philip Morris International Inc
Macy's Inc	5,661		382	4.38%, 11/15/2041			10			10
Office Depot Inc (a)	7,981		69	6.38%, 05/16/2038			25			31
Pandora A/S ADR	940		25	Pinnacle Operating Corp
Red Robin Gourmet Burgers Inc (a)	467		40	9.00%, 11/15/2020(c)			10			10
Rite Aid Corp (a)	6,400		54	Reynolds American Inc
Target Corp	5,964		487	3.25%, 11/01/2022			20			19
Wal-Mart Stores Inc	1,395		99	4.45%, 06/12/2025			15			15
Wendy's Co/The	4,760		54	5.70%, 08/15/2035			15			15
	$		2,470	5.85%, 08/15/2045			15			16
								$		141
Semiconductors - 1.01%
ARM Holdings PLC ADR	563		28	Airlines - 0.17%
Broadcom Corp	4,493		231	American Airlines 2014-1 Class A Pass
Intel Corp	3,970		121	Through Trust
Micron Technology Inc (a)	3,500		66	3.70%, 04/01/2028			10			10
Qorvo Inc (a)	522		42	American Airlines 2015-1 Class A Pass
	$		488	Through Trust
				3.38%, 11/01/2028			20			20
Software - 3.86%				United Airlines 2014-1 Class A Pass Through
2U Inc (a)	1,220		39	Trust
Apigee Corp (a)	930		9	4.00%, 10/11/2027			15			15
Appfolio Inc (a)	350		5	United Airlines 2014-1 Class B Pass Through
Aspen Technology Inc (a)	1,160		53	Trust
Black Knight Financial Services Inc (a)	890		28	4.75%, 10/11/2023			10			10
Broadridge Financial Solutions Inc	1,539		77	United Airlines 2014-2 Class A Pass Through
Electronic Arts Inc (a)	5,715		380	Trust
Fiserv Inc (a)	914		76	3.75%, 03/03/2028			15			15
Intuit Inc	1,750		176	US Airways 2001-1G Pass Through Trust
Microsoft Corp	17,397		768	7.08%, 09/20/2022			2			2
MINDBODY Inc (a)	920		13
Oracle Corp	5,674		229

See accompanying notes.

75

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)		Amount (000's)               Value (000's)				BONDS (continued)		Amount (000's)    Value (000's)
	Airlines (continued)						Banks (continued)
	US Airways 2013-1 Class A Pass Through						Bank of America Corp
	Trust						3.95%, 04/21/2025	$	15	$	14
	3.95%, 05/15/2027		$	9	$	9	4.00%, 04/01/2024		85		86
				$		81	4.10%, 07/24/2023		10		10
							4.20%, 08/26/2024		50		50
	Automobile Asset Backed Securities - 1.47%						4.25%, 10/22/2026		10		10
	Ally Auto Receivables Trust 2014-SN1						6.10%, 12/29/2049(d)		10		10
	0.52%, 10/20/2016(d)			56		56
							Bank of New York Mellon Corp/The
	AmeriCredit Automobile Receivables Trust						4.95%, 12/29/2049(d)		45		45
	2014-2						BBVA Banco Continental SA
	0.46%, 10/10/2017(d)			22		22	5.00%, 08/26/2022(c)		30		31
	Capital Auto Receivables Asset Trust 2014-2						BPCE SA
	1.26%, 05/21/2018(d)			75		75
							1.61%, 07/25/2017		10		10
	Capital Auto Receivables Asset Trust 2015-2
	0.59%, 10/20/2017 (d)			150		150	CIT Group Inc
							3.88%, 02/19/2019		10		10
	CarMax Auto Owner Trust 2014-3						Citigroup Inc
	0.55%, 08/15/2017			35		34	5.80%, 11/29/2049(d)		10		10
	CarMax Auto Owner Trust 2015-2						City National Corp/CA
	0.47%, 06/15/2018(d)			200		200
							5.25%, 09/15/2020		35		40
	Chesapeake Funding LLC
	1.43%, 04/07/2024 (c),(d)			75		75	Goldman Sachs Group Inc/The
							2.38%, 01/22/2018		100		102
	Santander Drive Auto Receivables Trust 2014-						2.55%, 10/23/2019		20		20
	2						2.60%, 04/23/2020		15		15
	0.80%, 04/16/2018(d)			50		50
							3.50%, 01/23/2025		10		10
	Volkswagen Auto Lease Trust 2014-A
	0.52%, 10/20/2016 (d)			37		37	3.75%, 05/22/2025		10		10
							3.85%, 07/08/2024		55		55
	Volkswagen Auto Loan Enhanced Trust 2013-						5.15%, 05/22/2045		30		29
	2						5.38%, 03/15/2020		15		17
	0.67%, 07/20/2016			14		14	5.38%, 12/29/2049(d)		40		40
				$		713	6.00%, 06/15/2020		15		17
	Automobile Floor Plan Asset Backed Securities - 0.16%						6.75%, 10/01/2037		10		12
	GE Dealer Floorplan Master Note Trust						JP Morgan Chase & Co
	0.57%, 07/20/2019(d)			75		75	1.63%, 05/15/2018		35		35
							2.75%, 06/23/2020		25		25
							4.40%, 07/22/2020		80		86
	Automobile Manufacturers - 0.65%						4.95%, 06/01/2045		20		19
	Ford Motor Co						5.00%, 12/29/2049(d)		20		20
	4.75%, 01/15/2043			15		15	Morgan Stanley
	7.40%, 11/01/2046			15		20	1.75%, 02/25/2016		15		15
	General Motors Co						2.38%, 07/23/2019		70		70
	3.50%, 10/02/2018			40		41	2.65%, 01/27/2020		5		5
	4.88%, 10/02/2023			10		11	4.10%, 05/22/2023		20		20
	5.20%, 04/01/2045			15		15	5.00%, 11/24/2025		30		31
	General Motors Financial Co Inc						5.55%, 12/29/2049(d)		10		10
	3.15%, 01/15/2020			10		10	Royal Bank of Scotland Group PLC
	3.25%, 05/15/2018			15		15	5.13%, 05/28/2024		5		5
	3.45%, 04/10/2022			15		15	6.13%, 12/15/2022		5		5
	4.00%, 01/15/2025			5		5	Wells Fargo & Co
	Hyundai Capital America						3.90%, 05/01/2045		35		31
	2.55%, 02/06/2019(c)			60		60	5.87%, 12/29/2049(d)		50		51
	Navistar International Corp						5.90%, 12/29/2049(d)		20		20
	8.25%, 11/01/2021			40		38			$		1,212
	Nissan Motor Acceptance Corp
	0.83%, 03/03/2017(c),(d)			30		30	Beverages - 0.22%
	Toyota Motor Credit Corp						Anheuser-Busch Cos LLC
	0.66%, 01/17/2019(d)			25		25	5.60%, 03/01/2017		25		27
	2.00%, 10/24/2018			15		15	Anheuser-Busch InBev Worldwide Inc
				$		315	2.50%, 07/15/2022		30		29
							Constellation Brands Inc
	Automobile Parts & Equipment - 0.06%						3.75%, 05/01/2021		20		19
	Dana Holding Corp						4.25%, 05/01/2023		5		5
	5.38%, 09/15/2021			10		10	Corp Lindley SA
	5.50%, 12/15/2024			5		5	6.75%, 11/23/2021(c)		15		17
	6.00%, 09/15/2023			5		5	6.75%, 11/23/2021		10		11
	Lear Corp								$		108
	5.25%, 01/15/2025			10		10
				$		30	Biotechnology - 0.09%
							Celgene Corp
	Banks- 2.50	%					4.63%, 05/15/2044		10		10
	Associated Banc-Corp						5.25%, 08/15/2043		5		5
	2.75%, 11/15/2019			10		10	Genzyme Corp
	4.25%, 01/15/2025			35		34	5.00%, 06/15/2020		15		17
	5.13%, 03/28/2016			65		67

See accompanying notes.

76

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
	Principal					Principal
BONDS (continued)	Amount (000's)     Value (000's)				BONDS (continued)	Amount (000's)       Value (000's)
Biotechnology (continued)					Credit Card Asset Backed Securities (continued)
Gilead Sciences Inc					Citibank Credit Card Issuance Trust
3.05%, 12/01/2016	$	10	$	10	0.39%, 08/24/2018(d)	$	100	$	100
		$		42			$		350
Building Materials - 0.31%					Distribution & Wholesale - 0.04%
CRH America Inc					Global Partners LP / GLP Finance Corp
8.13%, 07/15/2018		45		53	7.00%, 06/15/2023(c)		5		5
Martin Marietta Materials Inc					WW Grainger Inc
1.37%, 06/30/2017(d)		65		64	4.60%, 06/15/2045		15		15
4.25%, 07/02/2024		15		15			$		20
Norbord Inc
5.38%, 12/01/2020(c)		5		5	Diversified Financial Services - 0.50%
Owens Corning					Aircastle Ltd
4.20%, 12/01/2024		10		10	4.63%, 12/15/2018		5		5
Vulcan Materials Co					5.13%, 03/15/2021		10		10
4.50%, 04/01/2025		5		5	7.63%, 04/15/2020		5		6
		$		152	Ally Financial Inc
					3.60%, 05/21/2018		15		15
Chemicals - 0.18%					Credit Acceptance Corp
A Schulman Inc					6.13%, 02/15/2021		25		25
6.88%, 06/01/2023(c)		15		15	7.38%, 03/15/2023(c)		5		5
Agrium Inc					Denali Borrower LLC / Denali Finance Corp
3.38%, 03/15/2025		20		19	5.63%, 10/15/2020(c)		5		5
Aruba Investments Inc					General Electric Capital Corp
8.75%, 02/15/2023(c)		5		5	5.25%, 06/29/2049(d)		20		21
CF Industries Inc					5.30%, 02/11/2021		70		79
5.15%, 03/15/2034		10		10	5.88%, 01/14/2038		10		12
Dow Chemical Co/The					Icahn Enterprises LP / Icahn Enterprises
4.38%, 11/15/2042		5		4	Finance Corp
Eagle Spinco Inc					6.00%, 08/01/2020		5		5
4.63%, 02/15/2021		10		10	International Lease Finance Corp
LYB International Finance BV					6.25%, 05/15/2019		5		5
4.88%, 03/15/2044		10		10	8.62%, 09/15/2015(d)		5		5
NOVA Chemicals Corp					National Rural Utilities Cooperative Finance
5.00%, 05/01/2025(c)		5		5	Corp
5.25%, 08/01/2023(c)		10		10	4.75%, 04/30/2043(d)		10		10
		$		88	OneMain Financial Holdings Inc
					7.25%, 12/15/2021(c)		10		10
Commercial Services - 0.07%					Springleaf Finance Corp
Ahern Rentals Inc					5.25%, 12/15/2019		10		10
7.38%, 05/15/2023(c)		5		5
					Synchrony Financial
ERAC USA Finance LLC
3.85%, 11/15/2024  (c)		15		15	2.70%, 02/03/2020		15		15
4.50%, 02/15/2045(c)		15		14			$		243
		$		34	Electric - 0.70%
					Alabama Power Co
Computers - 0.33%					3.75%, 03/01/2045		10		9
Apple Inc					3.85%, 12/01/2042		10		9
0.53%, 05/03/2018(d)		50		50
0.58%, 05/06/2019(d)		10		10	4.15%, 08/15/2044		15		14
					CMS Energy Corp
2.85%, 05/06/2021		5		5	4.70%, 03/31/2043		5		5
3.45%, 02/09/2045		5		4	Commonwealth Edison Co
4.38%, 05/13/2045		20		20	3.70%, 03/01/2045		10		9
Hewlett-Packard Co					3.80%, 10/01/2042		5		5
3.00%, 09/15/2016		5		5	4.60%, 08/15/2043		10		10
6.00%, 09/15/2041		5		5	Consolidated Edison Co of New York Inc
NCR Corp					4.63%, 12/01/2054		10		10
4.63%, 02/15/2021		5		5	DTE Energy Co
Seagate HDD Cayman					6.38%, 04/15/2033		15		19
4.75%, 01/01/2025(c)		25		25
4.88%, 06/01/2027(c)		5		5	Duke Energy Carolinas LLC
5.75%, 12/01/2034(c)		25		24	4.00%, 09/30/2042		10		9
					Dynegy Inc
		$		158	7.38%, 11/01/2022(c)		10		10
Consumer Products - 0.01%					Edison International
Spectrum Brands Inc					3.75%, 09/15/2017		10		10
5.75%, 07/15/2025(c)		5		5	Electricite de France SA
					2.15%, 01/22/2019(c)		5		5
					Elwood Energy LLC
Credit Card Asset Backed Securities - 0.72%					8.16%, 07/05/2026		16		18
BA Credit Card Trust					Energy Future Intermediate Holding Co LLC /
0.46%, 09/16/2019(d)		75		75	EFIH Finance Inc
0.47%, 01/15/2020(d)		75		75	0.00%, 03/01/2022(a),(c),(d)		4		5
Barclays Dryrock Issuance Trust
0.53%, 03/16/2020(d)		100		100

See accompanying notes.

77

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)        Value (000's)			BONDS (continued)		Amount (000's)    Value (000's)
Electric (continued)					Food (continued)
Exelon Corp					Ingles Markets Inc
2.85%, 06/15/2020	$	15	$	15	5.75%, 06/15/2023	$	5	$	5
3.95%, 06/15/2025		10		10	JBS USA LLC / JBS USA Finance Inc
Florida Power & Light Co					5.75%, 06/15/2025(c)		5		5
4.05%, 06/01/2042		10		10	JM Smucker Co/The
4.13%, 02/01/2042		5		5	4.38%, 03/15/2045(c)		10		9
Northern States Power Co/MN					Kraft Foods Group Inc
3.40%, 08/15/2042		5		4	5.00%, 06/04/2042		15		15
NRG Energy Inc					Smithfield Foods Inc
6.25%, 05/01/2024		5		5	5.88%, 08/01/2021(c)		5		5
8.25%, 09/01/2020		10		10	Sysco Corp
Oncor Electric Delivery Co LLC					3.00%, 10/02/2021		25		25
5.25%, 09/30/2040		5		6	Wm Wrigley Jr Co
Pacific Gas & Electric Co					2.40%, 10/21/2018(c)		10		10
3.50%, 06/15/2025		10		10	3.38%, 10/21/2020(c)		25		26
4.45%, 04/15/2042		5		5			$		156
PacifiCorp
3.85%, 06/15/2021		10		11	Forest Products & Paper - 0.06%
PPL Electric Utilities Corp					Cascades Inc
					5.50%, 07/15/2022(c)		5		5
3.00%, 09/15/2021		5		5
4.75%, 07/15/2043		5		5	Domtar Corp
PPL WEM Ltd / Western Power Distribution					6.25%, 09/01/2042		20		20
Ltd					Tembec Industries Inc
3.90%, 05/01/2016(c)		15		15	9.00%, 12/15/2019(c)		5		4
5.38%, 05/01/2021(c)		25		28			$		29
Puget Energy Inc					Healthcare - Products - 0.40%
6.00%, 09/01/2021		15		17	Becton Dickinson and Co
Southern California Edison Co					2.68%, 12/15/2019		15		15
3.60%, 02/01/2045		10		9	Kinetic Concepts Inc / KCI USA Inc
4.05%, 03/15/2042		15		14	10.50%, 11/01/2018		10		11
Virginia Electric & Power Co					Medtronic Inc
4.00%, 01/15/2043		5		5	2.50%, 03/15/2020(c)		20		20
4.65%, 08/15/2043		5		5	4.38%, 03/15/2035(c)		30		30
		$		341	4.63%, 03/15/2045(c)		35		35
Electronics - 0.10%					Universal Hospital Services Inc
Keysight Technologies Inc					7.63%, 08/15/2020		10		9
3.30%, 10/30/2019(c)		20		20	Zimmer Biomet Holdings Inc
4.55%, 10/30/2024(c)		10		10	2.70%, 04/01/2020		35		35
Sanmina Corp					3.15%, 04/01/2022		30		29
4.38%, 06/01/2019(c)		20		20	3.55%, 04/01/2025		10		10
		$		50			$		194
Engineering & Construction - 0.05%					Healthcare - Services - 0.43%
SBA Tower Trust					Centene Corp
2.90%, 10/15/2044(c)		25		25	4.75%, 05/15/2022		70		72
					5.75%, 06/01/2017		24		26
					Fresenius Medical Care US Finance II Inc
Entertainment - 0.14%					5.88%, 01/31/2022(c)		5		5
CCM Merger Inc					HCA Inc
9.13%, 05/01/2019(c)		20		22	4.75%, 05/01/2023		5		5
Cinemark USA Inc					5.25%, 04/15/2025		20		21
4.88%, 06/01/2023		5		5	5.88%, 03/15/2022		5		6
DreamWorks Animation SKG Inc					LifePoint Health Inc
6.88%, 08/15/2020(c)		10		10	5.50%, 12/01/2021		5		5
Peninsula Gaming LLC / Peninsula Gaming					MPH Acquisition Holdings LLC
Corp					6.63%, 04/01/2022(c)		10		10
8.38%, 02/15/2018(c)		5		5	WellCare Health Plans Inc
Regal Entertainment Group					5.75%, 11/15/2020		55		57
5.75%, 03/15/2022		10		10			$		207
WMG Acquisition Corp
6.00%, 01/15/2021(c)		13		13	Holding Companies - Diversified - 0.09%
		$		65	Argos Merger Sub Inc
					7.13%, 03/15/2023(c)		5		5
Environmental Control - 0.05%					Brixmor Operating Partnership LP
Republic Services Inc					3.85%, 02/01/2025		15		15
3.80%, 05/15/2018		25		26	MUFG Americas Holdings Corp
					2.25%, 02/10/2020		10		10
Food - 0.32%					3.00%, 02/10/2025		15		14
HJ HeinzCo							$		44
2.80%, 07/02/2020(c),(e)		15		15	Home Builders - 0.11%
5.00%, 07/15/2035(c),(e)		10		10	Beazer Homes USAInc
5.20%, 07/15/2045(c),(e)		30		31	6.63%, 04/15/2018		15		15

See accompanying notes.

78

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)	Amount (000's)        Value (000's)				BONDS (continued)		Amount (000's)    Value (000's)
Home Builders (continued)					Lodging (continued)
Lennar Corp					MGM Resorts International (continued)
4.13%, 12/01/2018	$	5	$	5	6.63%, 12/15/2021		$	5	$	5
4.75%, 11/15/2022(d)		15		15	10.00%, 11/01/2016			5		6
WCI Communities Inc					Wyndham Worldwide Corp
6.88%, 08/15/2021		15		15	2.50%, 03/01/2018			15		15
Woodside Homes Co LLC / Woodside Homes								$		36
Finance Inc
6.75%, 12/15/2021(c)		5		5	Machinery - Construction & Mining - 0.01%
		$		55	Vander Intermediate Holding II Corp
					9.75%, PIK 10.50%, 02/01/2019 (c),(f)			5		5
Home Equity Asset Backed Securities - 0.04%
Specialty Underwriting & Residential Finance
Trust Series 2004-BC1					Machinery - Diversified - 0.01%
0.95%, 02/25/2035(d)		21		20	CNH Industrial Capital LLC
					3.88%, 07/16/2018(c)			5		5
Insurance - 1.13%
American International Group Inc					Media - 0.92	%
					21st Century Fox America Inc
4.50%, 07/16/2044		45		43	4.75%, 09/15/2044			10		10
CNO Financial Group Inc
4.50%, 05/30/2020		15		15	5.40%, 10/01/2043			5		5
Liberty Mutual Group Inc					6.15%, 02/15/2041			15		17
5.00%, 06/01/2021(c)		15		16	Cable One Inc
					5.75%, 06/15/2022(c)			5		5
7.00%, 03/07/2067(c),(d)		15		15
7.80%, 03/07/2087(c)		20		24	Cablevision Systems Corp
Metropolitan Life Global Funding I					8.00%, 04/15/2020			10		11
2.30%, 04/10/2019  (c)		150		151	CBS Corp
					4.60%, 01/15/2045			5		4
Progressive Corp/The					5.75%, 04/15/2020			15		17
3.70%, 01/26/2045		10		9
Prudential Financial Inc
5.38%, 05/15/2045(d)		25		25	CCO Holdings LLC / CCO Holdings Capital Corp
					5.13%, 05/01/2023(c)			15		15
Teachers Insurance & Annuity Association of
America					Comcast Corp
4.90%, 09/15/2044(c)		15		15	3.38%, 02/15/2025			10		10
TIAA Asset Management Finance Co LLC					4.60%, 08/15/2045			5		5
2.95%, 11/01/2019(c)		40		40	6.40%, 03/01/2040			20		25
4.13%, 11/01/2024(c)		20		20	6.50%, 11/15/2035			5		6
Voya Financial Inc					DIRECTV Holdings LLC / DIRECTV
2.90%, 02/15/2018		75		77	Financing Co Inc
5.65%, 05/15/2053(d)		30		31	3.80%, 03/15/2022			10		10
XLIT Ltd					6.00%, 08/15/2040			15		16
4.45%, 03/31/2025		45		45	6.38%, 03/01/2041			10		11
					DISH DBS Corp
5.50%, 03/31/2045		25		23	4.25%, 04/01/2018			5		5
		$		549	5.88%, 07/15/2022			15		15
Internet - 0.02%					5.88%, 11/15/2024			10		10
Zayo Group LLC / Zayo Capital Inc					6.75%, 06/01/2021			10		10
6.00%, 04/01/2023(c)		5		5	7.88%, 09/01/2019			10		11
10.13%, 07/01/2020		3		3	Grupo Televisa SAB
		$		8	6.63%, 01/15/2040			35		40
					NBCUniversal Media LLC
Iron & Steel - 0.22%					2.88%, 01/15/2023			35		34
AK Steel Corp					RCN Telecom Services LLC / RCN Capital
7.63%, 05/15/2020		5		4	Corp
ArcelorMittal					8.50%, 08/15/2020(c)			10		10
7.75%, 10/15/2039(d)		30		30	Time Warner Cable Inc
Glencore Funding LLC					4.13%, 02/15/2021			35		36
2.88%, 04/16/2020(c)		30		29	6.75%, 07/01/2018			5		6
Signode Industrial Group Lux SA/Signode					Time Warner Inc
Industrial Group US Inc					2.10%, 06/01/2019			10		10
6.38%, 05/01/2022(c)		10		10	4.05%, 12/15/2023			10		10
Vale Overseas Ltd					6.25%, 03/29/2041			30		34
4.38%, 01/11/2022		35		34	Univision Communications Inc
		$		107	8.50%, 05/15/2021(c)			10		11
Leisure Products & Services - 0.01%					Viacom Inc
NCL Corp Ltd					4.85%, 12/15/2034			15		14
5.25%, 11/15/2019(c)		5		5	WideOpenWest Finance LLC /
					WideOpenWest Capital Corp
					13.38%, 10/15/2019			20		22
Lodging - 0.08%								$		445
Boyd Gaming Corp
6.88%, 05/15/2023		5		5
MGM Resorts International
6.00%, 03/15/2023		5		5

See accompanying notes.

79

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
		Principal							Principal
BONDS (continued)		Amount (000's)        Value (000's)				BONDS (continued)			Amount (000's)     Value (000's)
Metal Fabrication & Hardware - 0.02%						Mortgage Backed Securities (continued)
Wise Metals Intermediate Holdings LLC/Wise						GE Commercial Mortgage Corp Series 2007-
Holdings Finance Corp						C1 Trust
9.75%, PIK 10.50%, 06/15/2019 (c),(f)	$	10	$	11		5.61%, 12/10/2049(d)		$	100	$	104
						GS Mortgage Securities Trust 2013-GCJ12
						3.78%, 06/10/2046(d)			25		25
Mining - 0.47%
Anglo American Capital PLC						JP Morgan Chase Commercial Mortgage
3.63%, 05/14/2020(c)		30		30		Securities Trust 2005-CIBC12
						4.95%, 09/12/2037			25		25
Barrick Gold Corp						JP Morgan Chase Commercial Mortgage
3.85%, 04/01/2022		20		19		Securities Trust 2005-LDP3
Barrick North America Finance LLC						5.13%, 08/15/2042(d)			25		25
4.40%, 05/30/2021		10		10
						JP Morgan Chase Commercial Mortgage
BHP Billiton Finance USA Ltd						Securities Trust 2006-CIBC17
2.05%, 09/30/2018		10		10		5.43%, 12/12/2043			24		25
FMG Resources August 2006 Pty Ltd
8.25%, 11/01/2019(c)		15		13	LB	-UBS Commercial Mortgage Trust 2005-
						C7
Freeport-McMoRan Inc						5.32%, 11/15/2040			45		45
4.00%, 11/14/2021		20		20
5.40%, 11/14/2034		5		4	LB	-UBS Commercial Mortgage Trust 2007-
						C2
Newmont Mining Corp						5.43%, 02/15/2040			8		9
4.88%, 03/15/2042		15		13
						Morgan Stanley Bank of America Merrill
Rio Tinto Finance USA Ltd						Lynch Trust 2013-C9
3.50%, 11/02/2020		10		10		3.46%, 05/15/2046			25		25
3.75%, 06/15/2025		15		15
9.00%, 05/01/2019		10		12		Morgan Stanley Bank of America Merrill
						Lynch Trust 2014-C18
Southern Copper Corp						4.59%, 10/15/2047(d)			50		52
3.88%, 04/23/2025		65		63
						Morgan Stanley Capital I Trust 2007-HQ12
Taseko Mines Ltd						5.86%, 04/12/2049 (d)			8		8
7.75%, 04/15/2019		5		4		UBS Commercial Mortgage Trust 2012-C1
Teck Resources Ltd						3.40%, 05/10/2045(d)			55		57
5.20%, 03/01/2042		5		4		UBS-Barclays Commercial Mortgage Trust
		$		227		2013	-C5
						3.18%, 03/10/2046(d)			15		15
Miscellaneous Manufacturing - 0.19%
Bombardier Inc						Wachovia Bank Commercial Mortgage Trust
7.50%, 03/15/2025(c)		5		5		Series 2007-C34
Ingersoll-Rand Global Holding Co Ltd						5.68%, 05/15/2046(d)			110		117
2.88%, 01/15/2019		10		10		WFRBS Commercial Mortgage Trust 2013-
5.75%, 06/15/2043		5		6		C12
Ingersoll-Rand Luxembourg Finance SA						1.62%, 03/15/2048(c),(d)			585		44
2.63%, 05/01/2020		15		15					$		1,004
3.55%, 11/01/2024		25		24
						Office & Business Equipment - 0.05%
4.65%, 11/01/2044		5		5
Tyco Electronics Group SA						Xerox Corp
3.50%, 02/03/2022		25		25		2.95%, 03/15/2017			5		5
						6.75%, 02/01/2017			5		6
		$		90		6.75%, 12/15/2039			10		11
Mortgage Backed Securities - 2.07%									$		22
BCRR Trust 2009-1
5.86%, 07/17/2040(c)		25		27		Oil & Gas - 1.64%
						Anadarko Petroleum Corp
CD 2006-CD3 Mortgage Trust						3.45%, 07/15/2024			20		20
5.62%, 10/15/2048		25		26		6.45%, 09/15/2036			5		6
Citigroup Commercial Mortgage Trust 2015-
GC27						Apache Corp
3.14%, 02/10/2048(d)		75		74		4.25%, 01/15/2044			10		9
						4.75%, 04/15/2043			5		5
Citigroup Commercial Mortgage Trust 2015-						Baytex Energy Corp
GC29						5.13%, 06/01/2021(c)			5		5
3.19%, 04/10/2048(d)		50		49
4.29%, 04/10/2048(d)		100		96		BP Capital Markets PLC
						0.82%, 05/10/2019(d)			50		50
COMM 2014-CCRE17 Mortgage Trust
4.90%, 05/10/2047(d)		50		52		Chaparral Energy Inc
						7.63%, 11/15/2022			10		7
Credit Suisse First Boston Mortgage Securities						Chesapeake Energy Corp
Corp						3.53%, 04/15/2019(d)			5		4
0.56%, 11/15/2037(c),(d)		50		—
4.77%, 07/15/2037		2		2		4.88%, 04/15/2022			5		4
CSMC Series 2009-RR3						6.13%, 02/15/2021			5		5
5.34%, 12/15/2043(c),(d)		25		26		ConocoPhillips Co
						1.18%, 05/15/2022(d)			20		20
Fannie Mae Interest Strip
4.50%, 10/25/2035(d)		311		18		Continental Resources Inc/OK
						3.80%, 06/01/2024			15		14
Freddie Mac
3.50%, 02/15/2025(d)		304		22		4.50%, 04/15/2023			10		10
						Delek & Avner Tamar Bond Ltd
Freddie Mac REMICS						5.41%, 12/30/2025(c)			50		50
0.79%, 08/15/2018(d)		7		7
1.25%, 09/15/2033		29		29

See accompanying notes.

80

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)      Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Oil & Gas (continued)					Oil & Gas (continued)
Denbury Resources Inc					Woodside Finance Ltd
5.50%, 05/01/2022	$	10	$	9	3.65%, 03/05/2025(c)	$	5	$	5
Devon Energy Corp							$		795
2.25%, 12/15/2018		25		25
5.00%, 06/15/2045		5		5	Oil & Gas Services - 0.06%
Ecopetrol SA					Halliburton Co
5.38%, 06/26/2026		25		25	4.75%, 08/01/2043		5		5
5.88%, 05/28/2045		10		9	Weatherford International LLC
7.63%, 07/23/2019		25		29	6.35%, 06/15/2017		5		5
Encana Corp					Weatherford International Ltd/Bermuda
5.15%, 11/15/2041		10		9	4.50%, 04/15/2022		5		5
Ensco PLC					5.95%, 04/15/2042		15		13
5.20%, 03/15/2025		5		5			$		28
EP Energy LLC / Everest Acquisition Finance					Other Asset Backed Securities - 0.18%
Inc					Countrywide Asset-Backed Certificates
9.38%, 05/01/2020		30		32	1.79%, 01/25/2034(d)		55		51
Halcon Resources Corp					JP Morgan Mortgage Acquisition Trust 2007-
9.25%, 02/15/2022		5		3	CH3
9.75%, 07/15/2020		5		3	0.34%, 03/25/2037(d)		36		36
Kerr-McGee Corp							$		87
7.88%, 09/15/2031		5		6
Linn Energy LLC / Linn Energy Finance					Packaging & Containers - 0.25%
Corp					Berry Plastics Corp
6.25%, 11/01/2019(d)		5		4	5.13%, 07/15/2023		10		10
6.50%, 05/15/2019		5		4	Beverage Packaging Holdings Luxembourg II
Nabors Industries Inc					SA / Beverage Packaging Holdings II
2.35%, 09/15/2016		10		10	5.63%, 12/15/2016(c)		5		5
Noble Energy Inc					Coveris Holding Corp
3.90%, 11/15/2024		20		20	10.00%, 06/01/2018 (c)		15		16
5.05%, 11/15/2044		10		10	Crown Cork &Seal Co Inc
Northern Blizzard Resources Inc					7.38%, 12/15/2026		8		9
7.25%, 02/01/2022(c)		6		6	Packaging Corp of America
Oasis Petroleum Inc					4.50%, 11/01/2023		20		20
6.50%, 11/01/2021		10		10	Reynolds Group Issuer Inc / Reynolds Group
Ocean Rig UDW Inc					Issuer LLC / Reynolds Group Issuer
7.25%, 04/01/2019(c)		10		7	(Luxembourg) S.A.
PDC Energy Inc					5.75%, 10/15/2020		30		31
7.75%, 10/15/2022		10		10	Rock-Tenn Co
Petroleos Mexicanos					3.50%, 03/01/2020		30		31
4.50%, 01/23/2026(c)		50		49			$		122
4.88%, 01/18/2024		50		51
					Pharmaceuticals - 0.62%
6.38%, 01/23/2045		25		26	AbbVie Inc
Phillips 66					1.80%, 05/14/2018		50		50
4.65%, 11/15/2034		10		10	2.50%, 05/14/2020		25		25
4.88%, 11/15/2044		5		5	3.60%, 05/14/2025		30		30
Pride International Inc					4.70%, 05/14/2045		15		15
6.88%, 08/15/2020		25		29	Actavis Funding SCS
QEP Resources Inc					3.00%, 03/12/2020		25		25
5.25%, 05/01/2023		10		9	3.45%, 03/15/2022		25		25
RKI Exploration & Production LLC / RKI					4.55%, 03/15/2035		15		14
Finance Corp					4.75%, 03/15/2045		10		9
8.50%, 08/01/2021(c)		10		10
					Forest Laboratories LLC
Rowan Cos Inc					5.00%, 12/15/2021(c)		25		27
5.00%, 09/01/2017		15		15	Hospira Inc
5.40%, 12/01/2042		15		12	5.20%, 08/12/2020		10		11
Seventy Seven Operating LLC					Merck & Co Inc
6.63%, 11/15/2019		5		4	1.30%, 05/18/2018		20		20
Shell International Finance BV					Valeant Pharmaceuticals International Inc
3.25%, 05/11/2025		15		15	5.38%, 03/15/2020(c)		5		5
4.38%, 05/11/2045		20		20	5.50%, 03/01/2023(c)		5		5
Southwestern Energy Co					5.88%, 05/15/2023(c)		15		15
4.05%, 01/23/2020		20		20	7.50%, 07/15/2021(c)		10		11
Sunoco LP / Sunoco Finance Corp					Wyeth LLC
6.38%, 04/01/2023(c)		5		5
					6.00%, 02/15/2036		5		6
TalismanEnergyInc					Zoetis Inc
3.75%, 02/01/2021		10		10	1.15%, 02/01/2016		5		5
5.50%, 05/15/2042		20		18			$		298
7.75%, 06/01/2019		20		23
Ultra Petroleum Corp
6.13%, 10/01/2024(c)		5		4
Whiting Canadian Holding Co ULC
8.13%, 12/01/2019		5		5

See accompanying notes.

81

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)      Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Pipelines - 0.82%					REITS (continued)
Boardwalk Pipelines LP					Retail Properties of America Inc
3.38%, 02/01/2023	$	15	$	14	4.00%, 03/15/2025	$	15	$	15
Columbia Pipeline Group Inc					Scentre Group Trust 1 / Scentre Group Trust
3.30%, 06/01/2020(c)		20		20	2
Enable Midstream Partners LP					2.38%, 04/28/2021(c)		25		24
2.40%, 05/15/2019(c)		30		29	Select Income REIT
3.90%, 05/15/2024(c)		10		9	2.85%, 02/01/2018		10		10
Enbridge Inc					3.60%, 02/01/2020		15		15
0.73%, 06/02/2017(d)		30		30	4.15%, 02/01/2022		15		15
3.50%, 06/10/2024		20		19	Ventas Realty LP
Energy Transfer Equity LP					1.25%, 04/17/2017		25		25
5.88%, 01/15/2024		5		5	1.55%, 09/26/2016		15		15
Energy Transfer Partners LP							$		189
4.05%, 03/15/2025		20		19
4.15%, 10/01/2020		10		10	Retail - 0.33%
4.90%, 03/15/2035		5		4	1011778 BC ULC / New Red Finance Inc
					4.63%, 01/15/2022(c)		5		5
EnLink Midstream Partners LP
					Building Materials Holding Corp
4.15%, 06/01/2025		15		15	9.00%, 09/15/2018  (c)		5		5
4.40%, 04/01/2024		5		5
5.05%, 04/01/2045		10		9	CVS Health Corp
Enterprise Products Operating LLC					4.13%, 05/15/2021		15		16
3.70%, 02/15/2026		5		5	CVS Pass-Through Trust
					5.93%, 01/10/2034(c)		9		11
4.90%, 05/15/2046		10		9	7.51%, 01/10/2032(c)		4		6
Kinder Morgan Energy Partners LP
					Family Tree Escrow LLC
4.70%, 11/01/2042		15		12	5.75%, 03/01/2023 (c)		5		5
5.00%, 10/01/2021		10		11
					Landry's Holdings II Inc
5.63%, 09/01/2041		10		9	10.25%, 01/01/2018 (c)		15		16
Kinder Morgan Inc/DE
3.05%, 12/01/2019		15		15	Macy's Retail Holdings Inc
ONEOK Partners LP					5.90%, 12/01/2016		36		38
4.90%, 03/15/2025		10		10	Michaels Stores Inc
					5.88%, 12/15/2020(c)		5		5
Sabine Pass Liquefaction LLC
5.63%, 03/01/2025(c)		20		20	Neiman Marcus Group LTD LLC
					8.75%, 10/15/2021(c)		5		5
TransCanada PipeLines Ltd
4.63%, 03/01/2034		10		10	New Academy Finance Co LLC / New
5.00%, 10/16/2043		5		5	Academy Finance Corp
					8.00%, PIK 8.75%, 06/15/2018(c),(f)		20		20
7.13%, 01/15/2019		5		6
					Petco Holdings Inc
Western Gas Partners LP					8.50%, PIK 9.25%, 10/15/2017(c),(f)		20		21
3.95%, 06/01/2025		10		10
					Tops Holding LLC / Tops Markets II Corp
5.45%, 04/01/2044		15		15	8.00%, 06/15/2022 (c)		5		5
Williams Cos Inc/The
7.88%, 09/01/2021		20		23			$		158
Williams Partners LP					Semiconductors - 0.10%
3.60%, 03/15/2022		20		19	Micron Technology Inc
Williams Partners LP / ACMP Finance Corp					5.25%, 01/15/2024(c)		5		5
4.88%, 05/15/2023		25		25	QUALCOMM Inc
4.88%, 03/15/2024		5		5	3.45%, 05/20/2025		15		15
		$		397	4.65%, 05/20/2035		20		19
Real Estate - 0.04%					4.80%, 05/20/2045		10		9
Crescent ResourcesLLC / Crescent Ventures							$		48
Inc					Software - 0.10%
10.25%, 08/15/2017 (c)		10		11	Activision Blizzard Inc
Prologis LP					5.63%, 09/15/2021(c)		10		10
4.25%, 08/15/2023		10		10	Oracle Corp
		$		21	2.95%, 05/15/2025		35		34
REITS - 0.39%					4.38%, 05/15/2055		5		5
AvalonBay Communities Inc							$		49
3.45%, 06/01/2025		15		15	Sovereign - 0.46%
DDR Corp					Mexico Government International Bond
3.63%, 02/01/2025		20		19	3.50%, 01/21/2021		60		61
DuPont Fabros Technology LP					4.75%, 03/08/2044		10		10
5.88%, 09/15/2021		5		5	Peruvian Government International Bond
Equinix Inc					5.63%, 11/18/2050		30		33
4.88%, 04/01/2020		5		5	Poland Government International Bond
5.38%, 01/01/2022		5		5	3.00%, 03/17/2023		45		44
5.38%, 04/01/2023		5		5	Romanian Government International Bond
Hospitality Properties Trust					4.88%, 01/22/2024(c)		30		32
4.50%, 06/15/2023		5		5	Uruguay Government International Bond
iStar Financial Inc					5.10%, 06/18/2050		45		43
4.88%, 07/01/2018		5		5			$		223
9.00%, 06/01/2017		5		6

See accompanying notes.

82

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)	Amount (000's)   Value (000's)				BONDS (continued)		Amount (000's)    Value (000's)
Student Loan Asset Backed Securities - 0.78%					Transportation - 0.15%
Navient Student Loan Trust 2014-8					CSX Corp
0.46%, 08/25/2020(d)	$	78	$	78	3.70%, 10/30/2020		$	15	$	16
Navient Student Loan Trust 2015-1					5.50%, 04/15/2041			10		11
0.49%, 09/26/2022(d)		138		138	Eletson Holdings
SLM Private Education Loan Trust 2012-E					9.63%, 01/15/2022(c)			5		5
0.94%, 10/16/2023(c),(d)		51		51	Hornbeck Offshore Services Inc
SLM Private Education Loan Trust 2013-A					5.00%, 03/01/2021			10		8
0.79%, 08/15/2022(c),(d)		88		88	Navios Maritime Acquisition Corp / Navios
SLM Student Loan Trust 2008-5					Acquisition Finance US Inc
1.58%, 01/25/2018(d)		10		10	8.13%, 11/15/2021(c)			20		20
SLM Student Loan Trust 2008-6					Navios Maritime Holdings Inc / Navios
0.83%, 10/25/2017(d)		12		12	Maritime Finance II US Inc
		$		377	7.38%, 01/15/2022(c)			10		9
					Navios South American Logistics Inc / Navios
Supranational Bank - 0.09%					Logistics Finance US Inc
Corp Andina de Fomento					7.25%, 05/01/2022(c)			5		5
1.50%, 08/08/2017		45		45				$		74
					Trucking & Leasing - 0.03%
Telecommunications - 1.06%					Jurassic Holdings III Inc
AT&T Inc					6.88%, 02/15/2021(c)			5		4
1.19%, 11/27/2018(d)		10		10
					Penske Truck Leasing Co Lp / PTL Finance
2.38%, 11/27/2018		5		5	Corp
2.45%, 06/30/2020		45		44	3.38%, 02/01/2022(c)			10		10
3.40%, 05/15/2025		45		43
4.30%, 12/15/2042		5		4				$		14
4.45%, 05/15/2021		15		16	TOTAL BONDS			$		10,951
4.50%, 05/15/2035		30		28	SENIOR FLOATING RATE INTERESTS -		Principal
4.75%, 05/15/2046		5		5	0.09	%	Amount (000's)   Value (000's)
CC Holdings GS V LLC / Crown Castle GS					Electronics - 0.01%
III Corp					Isola USA Corp, Term Loan B
3.85%, 04/15/2023		30		29	9.25%, 11/29/2018(d)		$	5	$	4
CenturyLink Inc
5.63%, 04/01/2025(c)		5		4
Embarq Corp					Forest Products & Paper - 0.01%
8.00%, 06/01/2036		5		6	Caraustar Industries Inc, Term Loan B
Goodman Networks Inc					8.00%, 04/26/2019(d)			5		5
12.13%, 07/01/2018		5		4
Intelsat Luxembourg SA					Healthcare - Products - 0.01%
7.75%, 06/01/2021		20		17	Accellent Inc, Term Loan
8.13%, 06/01/2023		15		12	4.50%, 02/19/2021(d)			5		5
Level 3 Communications Inc
5.75%, 12/01/2022		5		5
Level 3 Financing Inc					Machinery - Diversified - 0.01%
5.38%, 08/15/2022		5		5	SIG Combibloc PurchaseCo Sarl, Term Loan
Sprint 6.13%, Capital 01/15/2021 Corp		5		5	B 4.25%, 03/11/2022(d)			5		5
6.88%, 11/15/2028		10		9
Sprint Communications Inc					Oil & Gas - 0.03%
6.00%, 11/15/2022		5		5	Seadrill Operating LP, Term Loan B
7.00%, 08/15/2020		20		20	4.00%, 02/12/2021(d)			20		15
9.13%, 03/01/2017		3		3
Sprint Corp
7.88%, 09/15/2023		5		5	Retail - 0.02%
Telefonica Emisiones SAU					Academy Ltd, Term Loan B
7.05%, 06/20/2036		10		12	0.00%, 06/16/2022(d),(g)			10		10
T-Mobile USA Inc
6.25%, 04/01/2021		10		10	TOTAL SENIOR FLOATING RATE INTERESTS			$		44
6.63%, 04/28/2021		5		5	U.S. GOVERNMENT & GOVERNMENT		Principal
Verizon Communications Inc					AGENCY OBLIGATIONS - 16.96%		Amount (000's)    Value (000's)
1.35%, 06/09/2017		25		25	Federal Home Loan Mortgage Corporation (FHLMC) - 1.43%
2.04%, 09/14/2018(d)		50		52
2.63%, 02/21/2020		10		10	4.00%, 02/01/2044		$	65	$	70
4.52%, 09/15/2048(c)		33		29	4.00%, 10/01/2044			98		104
5.01%, 08/21/2054		27		25	4.50%, 04/01/2031			16		17
5.15%, 09/15/2023		35		38	4.50%, 05/01/2044			86		93
6.40%, 09/15/2033		3		3	5.00%, 06/01/2031			38		42
Vodafone Group PLC					5.00%, 08/01/2040			118		131
2.50%, 09/26/2022		10		9	5.00%, 06/01/2041			47		52
4.38%, 03/16/2021		10		11	5.50%, 12/01/2022			6		7
		$		513	6.00%, 01/01/2029			6		6
					6.00%, 10/01/2036(d)			11		12
					6.00%, 08/01/2037			33		38

See accompanying notes.

83

Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal				U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)       Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's)    Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)
						U.S. Treasury - 7.79%
(continued)
6.00%, 01/01/2038(d)		$	5	$	6		0.50%, 06/15/2016	$	430	$	431
6.00%, 07/01/2038			22		25		0.50%, 11/30/2016		10		10
6.50%, 06/01/2017			4		4		0.63%, 08/15/2016		165		165
							0.88%, 04/30/2017		125		126
6.50%, 05/01/2031			2		3		1.38%, 01/31/2020		350		347
6.50%, 06/01/2031			7		7
6.50%, 11/01/2031			2		2		1.38%, 04/30/2020		90		89
							1.63%, 12/31/2019		90		90
6.50%, 10/01/2035			18		20		1.75%, 09/30/2019		380		385
7.00%, 12/01/2027			8		10
7.50%, 08/01/2030			1		1		1.75%, 04/30/2022		40		39
							1.88%, 11/30/2021		300		298
8.00%, 12/01/2030			36		42		2.13%, 06/30/2022		450		452
			$		692		2.38%, 12/31/2020		50		52
Federal National Mortgage Association (FNMA) - 4.32%							2.38%, 08/15/2024		80		80
2.13%, 07/01/2034(d)			5		5		2.50%, 05/15/2024		30		31
2.30%, 03/01/2035(d)			11		12		2.63%, 02/29/2016		260		264
2.35%, 04/01/2037(d)			13		14		2.88%, 05/15/2043		125		119
2.50%, 03/01/2030			98		99		3.00%, 11/15/2044		105		103
2.50%, 07/01/2030(h)			90		91		3.13%, 01/31/2017		265		276
3.00%, 06/01/2027			191		199		3.13%, 11/15/2041		20		20
3.00%, 07/01/2029(h)			45		47		3.13%, 08/15/2044		35		35
3.00%, 10/01/2034			47		48		3.75%, 11/15/2043		100		113
3.00%, 08/01/2045(h)			215		214		4.38%, 05/15/2040		35		43
3.50%, 07/01/2029(h)			25		26		4.50%, 02/15/2036		165		207
3.50%, 10/01/2033			86		90				$		3,775
3.50%, 05/01/2043			62		64
						U.S. Treasury Bill - 0.74%
3.50%, 04/01/2045			197		204		0.22%, 12/10/2015(i)		360		360
3.50%, 08/01/2045(h)			220		226
4.00%, 08/01/2020			6		6
4.00%, 02/01/2031			7		8	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
4.00%, 06/01/2031			18		19	OBLIGATIONS			$		8,219
4.00%, 03/01/2041			30		32	Total Investments			$		49,206
4.00%, 09/01/2045(h)			215		227	Liabilities in Excess of Other Assets, Net - (1.53)%			$		(742	)
4.50%, 05/01/2040			93		102	TOTAL NET ASSETS - 100.00%			$		48,464
5.00%, 08/01/2040(h)			85		94
5.50%, 03/01/2034			15		17
5.50%, 04/01/2035			3		3	(a)	Non-Income Producing Security
5.50%, 07/01/2038			67		76	(b)	Fair value of these investments is determined in good faith by the Manager
5.50%, 05/01/2040			54		62		under procedures established and periodically reviewed by the Board of
5.70%, 02/01/2036(d)			4		5		Directors. At the end of the period, the fair value of these securities totaled
6.00%, 02/01/2025			21		24		$26 or 0.05% of net assets.
6.00%, 11/01/2037			30		34	(c)	Security exempt from registration under Rule 144A of the Securities Act of
6.00%, 03/01/2038			12		13		1933. These securities may be resold in transactions exempt from
6.50%, 02/01/2032			7		8		registration, normally to qualified institutional buyers. At the end of the
6.50%, 07/01/2037			4		4		period, the value of these securities totaled $2,085 or 4.30% of net assets.
6.50%, 07/01/2037			4		5	(d)	Variable Rate. Rate shown is in effect at June 30, 2015.
6.50%, 02/01/2038			5		6	(e)	Security purchased on a when-issued basis.
6.50%, 09/01/2038			7		8	(f)	Payment in kind; the issuer has the option of paying additional securities
			$		2,092		in lieu of cash.
						(g)	This Senior Floating Rate Note will settle after June 30, 2015, at which
Government National Mortgage Association (GNMA) -							time the interest rate will be determined.
2.68	%
1.63%, 07/20/2034(d)			111		115	(h)	Security was purchased in a "to-be-announced" ("TBA") transaction. See
1.63%, 07/20/2035(d)			116		120		Notes to Financial Statements for additional information.
1.75%, 01/20/2035(d)			40		42	(i)	Rate shown is the discount rate of the original purchase.
3.00%, 02/15/2043			28		29
3.00%, 07/01/2044			125		126
3.50%, 05/15/2042			78		82
3.50%, 10/15/2042			40		42
3.50%, 07/01/2044			300		311
4.00%, 10/15/2041			59		63
4.00%, 07/01/2045(h)			50		53
4.50%, 10/20/2040			20		21
4.50%, 11/15/2040			64		70
4.50%, 07/01/2044			75		81
5.00%, 02/15/2039			85		96
6.00%, 09/20/2026			11		13
6.00%, 01/15/2029			14		16
6.00%, 06/15/2032			2		2
7.00%, 05/15/2031			6		7
7.00%, 02/20/2032			9		11
			$		1,300

See accompanying notes.

84

		Schedule of Investments
Balanced Account
June 30, 2015 (unaudited)
Portfolio Summary (unaudited)
Sector		Percent
Consumer, Non-cyclical		16.93	%
Financial		16.53	%
Mortgage Securities		10.50	%
Technology		10.18	%
Government		9.08	%
Consumer, Cyclical		8.75	%
Energy		7.52	%
Communications		7.27	%
Industrial		6.43	%
Asset Backed Securities		3.34	%
Utilities		2.99	%
Basic Materials		1.81	%
Exchange Traded Funds		0.11	%
Diversified		0.09	%
Liabilities in Excess of Other Assets, Net		(1.53	)%
TOTAL NET ASSETS		100.00	%
Futures Contracts
										Unrealized
Type	Long/Short	Contracts		Notional Value			Fair Value	Appreciation/(Depreciation)
S&P 500 Emini; September 2015	Long	1		$	104	$	103		$	(1	)
Total								$		(1	)
Amounts in thousands except contracts

See accompanying notes.

85

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 4.59%		Shares Held		Value (000			's)			Principal
									BONDS (continued)	Amount (000's)    Value (000's)
	Publicly Traded Investment Fund - 4.59%
	BlackRock Liquidity Funds FedFund Portfolio		14,349,603			$	14,350		Automobile Asset Backed Securities (continued)
									Ally Auto Receivables Trust 2014-SN2
	TOTAL INVESTMENT COMPANIES				$		14,350		1.21%, 02/20/2019(b)	$	600	$	600
	PREFERRED STOCKS - 0.44%		Shares Held		Value (000			's)	AmeriCredit Automobile Receivables Trust
									2013-5
	Banks - 0.37	%							0.56%, 03/08/2017(b)		210		210
	Morgan Stanley			15,000			382		AmeriCredit Automobile Receivables Trust
	State Street Corp 5.90%; Series D			30,000			770		2014-1
					$		1,152		0.57%, 07/10/2017(b)		257		257
	Diversified Financial Services - 0.03%								AmeriCredit Automobile Receivables Trust
	Ally Financial Inc (a)			90			91		2014-2
									0.46%, 10/10/2017(b)		425		425
									Capital Auto Receivables Asset Trust 2013-1
	Telecommunications - 0.04%								0.79%, 06/20/2017		493		493
	Verizon Communications Inc			5,000			131		Capital Auto Receivables Asset Trust 2014-2
									1.26%, 05/21/2018(b)		1,250		1,254
	TOTAL PREFERRED STOCKS				$		1,374		Capital Auto Receivables Asset Trust 2015-2
			Principal						0.59%, 10/20/2017(b)		700		700
	BONDS - 64.94	%	Amount (000's)		Value (000			's)	CarMax Auto Owner Trust 2014-3
									0.55%, 08/15/2017		694		693
	Aerospace & Defense - 0.06%								CarMax Auto Owner Trust 2014-4
	Air 2 US								1.25%, 11/15/2019		1,000		1,002
	8.63%, 10/01/2020(a)		$	29		$	29
									CarMax Auto Owner Trust 2015-2
	Embraer Netherlands Finance BV								0.47%, 06/15/2018(b)		3,000		3,000
	5.05%, 06/15/2025			150			150		Chesapeake Funding LLC
					$		179		1.43%, 04/07/2024(a),(b)		562		564
	Agriculture - 0.79%								Drive Auto Receivables Trust 2015-B
	Altria Group Inc								0.93%, 12/15/2017(a),(b)		500		500
	2.63%, 01/14/2020			220			219		GM Financial Automobile Leasing Trust
	5.38%, 01/31/2044			60			64		2014-1
	9.95%, 11/10/2038			90			145		1.76%, 05/21/2018(a)		645		645
	BAT International Finance PLC								Nissan Auto Receivables 2013-C Owner
	2.75%, 06/15/2020(a)			225			226		Trust
	3.95%, 06/15/2025(a)			160			161		0.67%, 08/15/2018(b)		1,896		1,894
	Philip Morris International Inc								Santander Drive Auto Receivables Trust 2014-
	4.38%, 11/15/2041			140			134		2
	6.38%, 05/16/2038			5			6		0.51%, 07/17/2017(b)		298		298
	Pinnacle Operating Corp								0.80%, 04/16/2018(b)		1,000		1,000
	9.00%, 11/15/2020(a)			158			157		Santander Drive Auto Receivables Trust 2014-
	Reynolds American Inc								4
	3.25%, 06/12/2020			200			203		0.51%, 01/16/2018(b)		651		651
	3.25%, 11/01/2022			405			390		Santander Drive Auto Receivables Trust 2014-
	4.45%, 06/12/2025			275			280		5
	5.70%, 08/15/2035			180			187		0.59%, 04/16/2018(b)		81		81
	5.85%, 08/15/2045			270			283		1.77%, 09/16/2019		450		451
					$		2,455		SunTrust Auto Receivables Trust 2015-1
									0.99%, 06/15/2018(a),(b)		300		300
	Airlines - 0.43%								World Omni Auto Receivables Trust 2014-B
	American Airlines 2014-1 Class A Pass								1.14%, 01/15/2020		700		699
	Through Trust								World Omni Automobile Lease Securitization
	3.70%, 04/01/2028			160			160		Trust 2013-A
	American Airlines 2015-1 Class A Pass								0.73%, 05/16/2016		105		105
	Through Trust								1.10%, 12/15/2016		250		250
	3.38%, 11/01/2028			390			385				$		18,073
	American Airlines 2015-1 Class B Pass
	Through Trust								Automobile Floor Plan Asset Backed Securities - 0.73%
	3.70%, 11/01/2024			20			20		Ally Master Owner Trust
	United Airlines 2014-1 Class A Pass Through								1.60%, 10/15/2019		300		301
	Trust								GE Dealer Floorplan Master Note Trust
	4.00%, 10/11/2027			230			232		0.57%, 07/20/2019(b)		1,600		1,592
	United Airlines 2014-2 Class A Pass Through								0.63%, 10/20/2017(b)		400		400
	Trust										$		2,293
	3.75%, 03/03/2028			300			297
									Automobile Manufacturers - 1.82%
	US Airways 2001-1G Pass Through Trust								Daimler Finance North America LLC
	7.08%, 09/20/2022			38			41		1.30%, 07/31/2015(a)		495		495
	US Airways 2013-1 Class A Pass Through								1.65%, 03/02/2018(a)		445		443
	Trust								2.45%, 05/18/2020(a)		385		383
	3.95%, 05/15/2027			197			198		Ford Motor Co
					$		1,333		7.40%, 11/01/2046		175		232
	Automobile Asset Backed Securities - 5.78%								Ford Motor Credit Co LLC
	Ally Auto Receivables Trust 2014-3								8.00%, 12/15/2016		335		365
	0.81%, 09/15/2017(b)			2,000			2,001		General Motors Co
									3.50%, 10/02/2018		775		800

See accompanying notes.

86

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)       Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
	Automobile Manufacturers (continued)						Banks (continued)
	General Motors Co (continued)						Compass Bank (continued)
	4.88%, 10/02/2023		$	295	$	311	3.88%, 04/10/2025	$	375	$	353
	5.20%, 04/01/2045			135		134	Cooperatieve Centrale Raiffeisen-
	6.25%, 10/02/2043			35		39	Boerenleenbank BA/Netherlands
	General Motors Financial Co Inc						11.00%, 12/29/2049 (a),(b)		281		356
	2.63%, 07/10/2017			355		359	Fifth Third Bank/Cincinnati OH
	3.15%, 01/15/2020			270		271	2.88%, 10/01/2021		430		426
	3.25%, 05/15/2018			255		261	Goldman Sachs Group Inc/The
	3.45%, 04/10/2022			470		461	2.55%, 10/23/2019		405		406
	4.00%, 01/15/2025			40		39	2.60%, 04/23/2020		290		289
	Jaguar Land Rover Automotive PLC						3.50%, 01/23/2025		180		175
	4.13%, 12/15/2018(a)			200		203	3.85%, 07/08/2024		885		884
	Navistar International Corp						5.15%, 05/22/2045		515		497
	8.25%, 11/01/2021			255		242	5.38%, 12/29/2049(b)		1,340		1,324
	Nissan Motor Acceptance Corp						6.00%, 06/15/2020		200		229
	0.83%, 03/03/2017(a),(b)			410		411	6.75%, 10/01/2037		335		393
	Volkswagen International Finance NV						Huntington National Bank/The
	1.13%, 11/18/2016(a)			235		235	0.70%, 04/24/2017(b)		1,500		1,496
				$		5,684	ING Bank NV
							5.80%, 09/25/2023(a)		200		218
	Automobile Parts & Equipment - 0.18%						Intesa Sanpaolo SpA
	Dana Holding Corp						2.38%, 01/13/2017		455		457
	5.38%, 09/15/2021			30		31	5.02%, 06/26/2024(a)		545		530
	5.50%, 12/15/2024			130		128	JP Morgan Chase & Co
	6.00%, 09/15/2023			60		62	2.75%, 06/23/2020		310		310
	6.75%, 02/15/2021			35		37	4.95%, 06/01/2045		420		408
	Lear Corp						5.00%, 12/29/2049(b)		280		274
	5.25%, 01/15/2025			100		98	Morgan Stanley
	Nemak SA de CV						1.75%, 02/25/2016		230		231
	5.50%, 02/28/2023(a)			200		205
							2.38%, 07/23/2019		100		99
				$		561	2.65%, 01/27/2020		100		100
	Banks - 7.67	%					4.10%, 05/22/2023		655		656
	Associated Banc-Corp						4.30%, 01/27/2045		345		322
	2.75%, 11/15/2019			160		160	5.55%, 12/29/2049(b)		220		218
	4.25%, 01/15/2025			655		645	PNC Bank NA
	5.13%, 03/28/2016			705		726	1.60%, 06/01/2018		275		275
	Banco Inbursa SA Institucion de Banca						2.30%, 06/01/2020		610		606
	Multiple						3.25%, 06/01/2025		455		445
	4.13%, 06/06/2024(a)			200		192	Royal Bank of Scotland Group PLC
	Bancolombia SA						5.13%, 05/28/2024		50		50
	5.95%, 06/03/2021			100		110	Santander Bank NA
	Bank of America Corp						2.00%, 01/12/2018		375		375
	3.95%, 04/21/2025			310		299	Skandinaviska EnskildaBanken AB
	4.20%, 08/26/2024			865		863	2.45%, 05/27/2020(a)		355		352
	4.25%, 10/22/2026			475		465	UBS AG/Jersey
	4.88%, 04/01/2044			180		183	7.25%, 02/22/2022(b)		245		258
	6.10%, 12/29/2049(b)			405		400	UBS AG/Stamford CT
	6.25%, 09/29/2049(b)			385		383	2.35%, 03/26/2020		615		611
	Bank of New York Mellon Corp/The						US Bank NA/Cincinnati OH
	4.95%, 12/29/2049(b)			1,085		1,077	2.80%, 01/27/2025		355		340
	Banque Centrale de Tunisie SA						Wells Fargo & Co
	5.75%, 01/30/2025(a)			200		195	5.87%, 12/29/2049(b)		865		886
	Barclays PLC								$		23,981
	8.25%, 12/29/2049(b)			440		465
							Beverages - 0.37%
	BBVA Banco Continental SA
	5.00%, 08/26/2022 (a)			150		156	Ajecorp BV
							6.50%, 05/14/2022		250		182
	BBVA Bancomer SA/Texas
	6.75%, 09/30/2022  (a)			300		330	Coca-Cola Icecek AS
							4.75%, 10/01/2018(a)		250		264
	BNP Paribas SA						Constellation Brands Inc
	2.38%, 05/21/2020			210		208	3.75%, 05/01/2021		30		29
	BPCE SA						3.88%, 11/15/2019		20		20
	1.61%, 07/25/2017			190		190	4.25%, 05/01/2023		125		123
	Capital One Financial Corp						Corp Lindley SA
	5.55%, 12/29/2049(b)			370		367	6.75%, 11/23/2021(a)		100		111
	CIT Group Inc						6.75%, 11/23/2021		150		166
	3.88%, 02/19/2019			380		377	Pernod Ricard SA
	Citigroup Inc						5.75%, 04/07/2021(a)		235		265
	5.80%, 11/29/2049(b)			140		140
	City National Corp/CA								$		1,160
	5.25%, 09/15/2020			515		583	Biotechnology - 0.12%
	Compass Bank						Celgene Corp
	2.75%, 09/29/2019			620		618	4.63%, 05/15/2044		75		71

See accompanying notes.

87

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
		Principal				Principal
BONDS (continued)		Amount (000's)        Value (000's)			BONDS (continued)	Amount (000's)   Value (000's)
Biotechnology (continued)					Computers (continued)
Celgene Corp (continued)					Hewlett-Packard Co (continued)
5.25%, 08/15/2043	$	30	$	31	6.00%, 09/15/2041	$	95	$	94
Gilead Sciences Inc					IHS Inc
3.05%, 12/01/2016		135		139	5.00%, 11/01/2022(a)		25		25
4.80%, 04/01/2044		125		129	NCR Corp
		$		370	4.63%, 02/15/2021		72		72
					Seagate HDD Cayman
Building Materials - 0.97%					4.75%, 01/01/2025(a)		265		263
Boise Cascade Co					4.88%, 06/01/2027(a)		390		379
6.38%, 11/01/2020		55		58	5.75%, 12/01/2034(a)		445		438
Cemex SAB de CV							$		2,709
6.13%, 05/05/2025(a)		200		198
7.25%, 01/15/2021(a)		200		211	Consumer Products - 0.02%
CRH America Inc					Spectrum Brands Inc
8.13%, 07/15/2018		510		598	5.75%, 07/15/2025(a)		55		56
Martin Marietta Materials Inc
1.37%, 06/30/2017(b)		1,385		1,379
					Credit Card Asset Backed Securities - 1.51%
4.25%, 07/02/2024		270		273	BA Credit Card Trust
Norbord Inc					0.46%, 09/16/2019(b)		750		749
5.38%, 12/01/2020(a)		95		95
					Barclays Dryrock Issuance Trust
Owens Corning					0.53%, 03/16/2020(b)		300		300
4.20%, 12/01/2024		155		152	0.55%, 12/16/2019(b)		2,000		2,000
Vulcan Materials Co					Citibank Credit Card Issuance Trust
4.50%, 04/01/2025		70		70	0.39%, 08/24/2018(b)		660		660
		$		3,034	Discover Card Execution Note Trust
					0.39%, 01/16/2018(b)		1,000		1,000
Chemicals - 0.48%
A Schulman Inc							$		4,709
6.88%, 06/01/2023(a)		55		56
					Distribution & Wholesale - 0.14%
Agrium Inc					Global Partners LP / GLP Finance Corp
3.38%, 03/15/2025		350		333	7.00%, 06/15/2023(a)		80		79
Aruba Investments Inc
8.75%, 02/15/2023(a)		80		82	HD Supply Inc
Axiall Corp					7.50%, 07/15/2020		111		117
					WW Grainger Inc
4.88%, 05/15/2023		50		48	4.60%, 06/15/2045		240		240
CF Industries Inc
5.15%, 03/15/2034		70		69			$		436
Consolidated Energy Finance SA					Diversified Financial Services - 1.58%
6.75%, 10/15/2019(a)		200		203	Aircastle Ltd
Cornerstone Chemical Co					4.63%, 12/15/2018		55		57
9.38%, 03/15/2018(a)		70		73	5.13%, 03/15/2021		150		151
Dow Chemical Co/The					5.50%, 02/15/2022		40		41
4.38%, 11/15/2042		80		73	7.63%, 04/15/2020		45		51
Eagle Spinco Inc					Credit Acceptance Corp
4.63%, 02/15/2021		100		97	6.13%, 02/15/2021		255		256
Mexichem SAB de CV					7.38%, 03/15/2023(a)		100		103
4.88%, 09/19/2022		250		259	Denali Borrower LLC / Denali Finance Corp
NOVA Chemicals Corp					5.63%, 10/15/2020(a)		110		116
5.00%, 05/01/2025(a)		75		75	Fly Leasing Ltd
5.25%, 08/01/2023(a)		130		132	6.38%, 10/15/2021		200		202
		$		1,500	General Electric Capital Corp
					5.25%, 06/29/2049(b)		400		410
Commercial Services - 0.25%					5.30%, 02/11/2021		450		506
Ahern Rentals Inc
7.38%, 05/15/2023(a)		55		54	5.88%, 01/14/2038		255		305
					6.25%, 12/31/2049(b)		400		438
ERAC USA Finance LLC
3.30%, 10/15/2022(a)		50		49	Icahn Enterprises LP / Icahn Enterprises
3.85%, 11/15/2024(a)		355		356	Finance Corp
4.50%, 02/15/2045(a)		290		267	4.88%, 03/15/2019		55		55
TMS International Corp					6.00%, 08/01/2020		105		108
7.63%, 10/15/2021(a)		70		68	International Lease Finance Corp
					6.25%, 05/15/2019		95		103
		$		794	National Rural Utilities Cooperative Finance
Computers - 0.87%					Corp
Apple Inc					4.75%, 04/30/2043(b)		125		125
0.53%, 05/03/2018(b)		750		751	Peachtree Corners Funding Trust
0.58%, 05/06/2019(b)		160		161	3.98%, 02/15/2025(a)		750		744
2.85%, 05/06/2021		20		20	Springleaf Finance Corp
3.45%, 02/09/2045		155		131	5.25%, 12/15/2019		110		108
4.38%, 05/13/2045		240		237	SUAM Finance BV
Compiler Finance Sub Inc					4.88%, 04/17/2024(a)		250		252
7.00%, 05/01/2021(a)		80		61	Vesey Street Investment Trust I
Hewlett-Packard Co					4.40%, 09/01/2016(b)		765		792
3.00%, 09/15/2016		75		77			$		4,923

See accompanying notes.

88

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
		Principal						Principal
BONDS (continued)		Amount (000's)         Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
Electric - 2.03%					Electronics (continued)
Alabama Power Co						Sanmina Corp
3.75%, 03/01/2045	$	140	$	126	4.38%, 06/01/2019(a)		$	15	$	15
3.85%, 12/01/2042		125		114				$		603
4.15%, 08/15/2044		235		225
CMS Energy Corp					Engineering & Construction - 0.05%
4.70%, 03/31/2043		135		136		SBA Tower Trust
					2.90%, 10/15/2044(a)			170		171
Commonwealth Edison Co
3.70%, 03/01/2045		120		108
3.80%, 10/01/2042		115		104	Entertainment - 0.29%
4.60%, 08/15/2043		170		175		Carmike Cinemas Inc
Consolidated Edison Co of New York Inc					6.00%, 06/15/2023(a)			35		35
4.63%, 12/01/2054		150		146		CCM Merger Inc
DTE Energy Co					9.13%, 05/01/2019(a)			195		209
6.38%, 04/15/2033		305		376		Cinemark USA Inc
Duke Energy Carolinas LLC						4.88%, 06/01/2023		200		192
4.00%, 09/30/2042		210		198	DreamWorks Animation SKG Inc
Dynegy Inc					6.88%, 08/15/2020(a)			115		114
7.38%, 11/01/2022(a)		125		131	Peninsula Gaming LLC / Peninsula Gaming
Edison International						Corp
3.75%, 09/15/2017		160		168	8.38%, 02/15/2018(a)			130		135
Electricite de France SA					Regal Entertainment Group
2.15%, 01/22/2019(a)		115		116		5.75%, 03/15/2022		145		147
5.63%, 12/29/2049(a),(b)		400		407	WMG Acquisition Corp
Elwood Energy LLC					6.00%, 01/15/2021(a)			24		25
8.16%, 07/05/2026		139		155		WMG Holdings Corp
Energy Future Intermediate Holding Co LLC /					13.75%, 10/01/2019			45		49
EFIH Finance Inc								$		906
0.00%, 03/01/2022(a),(b),(c)		44		50
Exelon Corp						Food - 1.56%
2.85%, 06/15/2020		330		332		Cencosud SA
3.95%, 06/15/2025		230		231	5.15%, 02/12/2025(a)			250		252
Florida Power & Light Co						Gruma SAB de CV
4.05%, 06/01/2042		160		156		4.88%, 12/01/2024 (a)		350		364
Indiantown Cogeneration LP					Grupo Bimbo SAB de CV
9.77%, 12/15/2020		153		175	3.88%, 06/27/2024(a)			300		299
					4.88%, 06/27/2044(a)			200		186
Miran Mid-Atlantic Series C Pass Through Trust					HJ Heinz Co
10.06%, 12/30/2028		127		137	2.80%, 07/02/2020(a),(d)			460		460
Northern States Power Co/MN					3.95%, 07/15/2025(a),(d)			95		96
3.40%, 08/15/2042		40		35	5.00%, 07/15/2035(a),(d)			195		197
NRG Energy Inc					5.20%, 07/15/2045(a),(d)			455		466
8.25%, 09/01/2020		125		131		Ingles Markets Inc
Oncor Electric Delivery Co LLC						5.75%, 06/15/2023		90		92
5.25%, 09/30/2040		120		133	JBS USA LLC / JBS USA Finance Inc
Pacific Gas & Electric Co					5.75%, 06/15/2025(a)			85		84
3.50%, 06/15/2025		245		245		JM Smucker Co/The
4.45%,  04/15/2042		105		103		2.50%, 03/15/2020 (a)		125		124
PacifiCorp					3.50%, 03/15/2025(a)			170		167
3.85%, 06/15/2021		150		159	4.38%, 03/15/2045(a)			300		276
4.10%, 02/01/2042		120		115		Kraft Foods Group Inc
PPL Electric Utilities Corp						5.00%, 06/04/2042		380		379
3.00%, 09/15/2021		80		81		Pilgrim's Pride Corp
4.75%, 07/15/2043		115		121		5.75%, 03/15/2025 (a)		40		40
						Smithfield Foods Inc
PPL WEM Ltd / Western Power Distribution Ltd						5.25%, 08/01/2018 (a)		70		71
3.90%, 05/01/2016(a)		230		235	5.88%, 08/01/2021(a)			95		98
5.38%, 05/01/2021(a)		440		487		Sysco Corp
Puget Energy Inc						3.00%, 10/02/2021		545		551
6.00%, 09/01/2021		285		327		Wm WrigleyJr Co
Southern California Edison Co						2.40%, 10/21/2018 (a)		235		238
3.60%, 02/01/2045		210		187	3.38%, 10/21/2020(a)			415		428
Virginia Electric & Power Co								$		4,868
4.00%, 01/15/2043		35		33	Forest Products & Paper - 0.19%
4.45%, 02/15/2044		125		125		Cascades Inc
4.65%, 08/15/2043		65		67	5.50%, 07/15/2022(a)			70		68
		$		6,350		Domtar Corp
Electronics - 0.19%						6.25%, 09/01/2042		285		282
Keysight Technologies Inc						Georgia-Pacific LLC
3.30%, 10/30/2019(a)		360		361	5.40%, 11/01/2020(a)			40		45
4.55%, 10/30/2024(a)		235		227	Resolute Forest Products Inc
						5.88%, 05/15/2023		45		41

See accompanying notes.

89

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)	Amount (000's)   Value (000's)
	Forest Products & Paper (continued)						Holding Companies - Diversified (continued)
	Sappi Papier Holding GmbH						MUFG Americas Holdings Corp	(continued)
	7.50%, 06/15/2032(a)		$	50	$	47	3.00%, 02/10/2025	$	280	$	263
	Tembec Industries Inc								$		1,143
	9.00%, 12/15/2019(a)			75		71
	Verso Paper Holdings LLC / Verso Paper Inc						Home Builders - 0.21%
	11.75%, 01/15/2019			55		33	Lennar Corp
				$		587	4.13%, 12/01/2018		90		91
							4.50%, 11/15/2019		20		20
	Gas - 0.00	%					4.75%, 11/15/2022(b)		230		226
	Dominion Gas Holdings LLC						Standard Pacific Corp
	4.80%, 11/01/2043			10		10	5.88%, 11/15/2024		35		36
							WCI Communities Inc
							6.88%, 08/15/2021		150		155
	Healthcare - Products - 1.28%						Woodside Homes Co LLC / Woodside Homes
	Becton Dickinson and Co						Finance Inc
	2.68%, 12/15/2019			225		225	6.75%, 12/15/2021(a)		135		128
	ConvaTec Finance International SA
	8.25%, PIK 9.00%, 01/15/2019(a),(e)			200		196			$		656
	DJO Finco Inc / DJO Finance LLC / DJO						Home Equity Asset Backed Securities - 0.06%
	Finance Corp						New Century Home Equity Loan Trust 2005-
	8.13%, 06/15/2021(a)			85		88	1
	Kinetic Concepts Inc / KCI USA Inc						0.77%, 03/25/2035(b)		25		25
	10.50%, 11/01/2018			40		43	Saxon Asset Securities Trust 2004-1
	Medtronic Inc						1.88%, 03/25/2035(b)		127		61
	2.50%, 03/15/2020(a)			355		356	Specialty Underwriting & Residential Finance
	4.38%, 03/15/2035(a)			585		581	Trust Series 2004-BC1
	4.63%, 03/15/2045(a)			560		567	0.95%, 02/25/2035(b)		123		113
	Universal Hospital Services Inc								$		199
	7.63%, 08/15/2020			60		55
	Zimmer Biomet Holdings Inc						Insurance - 1.91%
	2.00%, 04/01/2018			285		285	American International Group Inc
	2.70%, 04/01/2020			810		806	3.38%, 08/15/2020		550		569
	3.15%, 04/01/2022			425		418	CNO Financial Group Inc
	3.55%, 04/01/2025			405		391	4.50%, 05/30/2020		45		46
				$		4,011	Liberty Mutual Group Inc
							4.25%, 06/15/2023(a)		255		262
	Healthcare - Services - 1.06%						5.00%, 06/01/2021(a)		320		349
	Centene Corp						7.00%, 03/07/2067(a),(b)		215		220
	4.75%, 05/15/2022			1,090		1,123	7.80%, 03/07/2087(a)		420		498
	5.75%, 06/01/2017			258		274	Progressive Corp/The
	CHS/Community Health Systems Inc						3.70%, 01/26/2045		210		186
	5.13%, 08/01/2021			15		15	Prudential Financial Inc
	Fresenius Medical Care US Finance II Inc						5.38%, 05/15/2045(b)		505		498
	4.75%, 10/15/2024(a)			100		99	TIAA Asset Management Finance Co LLC
	5.88%, 01/31/2022(a)			85		90	2.95%, 11/01/2019(a)		695		700
	Fresenius Medical Care US Finance Inc						4.13%, 11/01/2024(a)		325		327
	6.50%, 09/15/2018(a)			55		61	Voya Financial Inc
	HCA Inc						2.90%, 02/15/2018		550		565
	4.75%, 05/01/2023			245		248	5.65%, 05/15/2053(b)		465		475
	5.00%, 03/15/2024			125		127	XLIT Ltd
	5.25%, 04/15/2025			105		109	4.45%, 03/31/2025		775		768
	5.38%, 02/01/2025			20		20	5.50%, 03/31/2045		550		517
	5.88%, 03/15/2022			85		92			$		5,980
	LifePoint Health Inc
	5.50%, 12/01/2021			45		47	Internet - 0.29%
	MPH Acquisition Holdings LLC						Alibaba Group Holding Ltd
	6.63%, 04/01/2022(a)			160		163	3.13%, 11/28/2021(a)		250		247
	Tenet Healthcare Corp						3.60%, 11/28/2024(a)		400		386
	6.75%, 06/15/2023(a)			45		46	Zayo Group LLC / Zayo Capital Inc
	WellCare Health Plans Inc						6.00%, 04/01/2023(a)		170		168
	5.75%, 11/15/2020			780		811	10.13%, 07/01/2020		91		101
				$		3,325			$		902
	Holding Companies - Diversified - 0.37%						Iron & Steel - 0.43%
	Alfa SAB de CV						AK Steel Corp
	5.25%, 03/25/2024(a)			200		205	7.63%, 05/15/2020		50		42
	Alphabet Holding Co Inc						ArcelorMittal
	7.75%, 11/01/2017			65		65	5.13%, 06/01/2020		15		15
	Argos Merger Sub Inc						7.75%, 10/15/2039(b)		330		328
	7.13%, 03/15/2023(a)			90		94	Commercial Metals Co
	Brixmor Operating Partnership LP						4.88%, 05/15/2023		240		226
	3.85%, 02/01/2025			285		274	Glencore Funding LLC
	MUFG Americas Holdings Corp						2.88%, 04/16/2020(a)		585		573
	2.25%, 02/10/2020			245		242

See accompanying notes.

90

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)    Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
	Iron & Steel (continued)						Media (continued)
	Signode Industrial Group Lux SA/Signode						Time Warner Inc
	Industrial Group US Inc						2.10%, 06/01/2019	$	135	$	134
	6.38%, 05/01/2022(a)		$	165	$	160	4.05%, 12/15/2023		195		200
				$		1,344	6.25%, 03/29/2041		450		515
							Unitymedia Hessen GmbH & Co KG /
	Leisure Products & Services - 0.03%						Unitymedia NRW GmbH
	NCL Corp Ltd						5.50%, 01/15/2023(a)		150		153
	5.25%, 11/15/2019(a)			80		82
							Univision Communications Inc
							8.50%, 05/15/2021(a)		120		126
	Lodging - 0.17%						Viacom Inc
	Boyd Gaming Corp						4.85%, 12/15/2034		260		240
	6.88%, 05/15/2023			45		46	5.85%, 09/01/2043		30		30
	MGM Resorts International						VTR Finance BV
	6.00%, 03/15/2023			55		56	6.88%, 01/15/2024(a)		250		256
	6.63%, 12/15/2021			30		31	WideOpenWest Finance LLC /
	7.75%, 03/15/2022			10		11	WideOpenWest Capital Corp
	10.00%, 11/01/2016			60		65	13.38%, 10/15/2019		130		141
	Wyndham Worldwide Corp						10.25%, 07/15/2019		75		80
	2.50%, 03/01/2018			305		306			$		7,744
				$		515
							Metal Fabrication & Hardware - 0.03%
	Machinery - Construction & Mining - 0.02%						Wise Metals Intermediate Holdings LLC/Wise
	Vander Intermediate Holding II Corp						Holdings Finance Corp
	9.75%, PIK 10.50%, 02/01/2019 (a),(e)			65		64	9.75%, PIK 10.50%, 06/15/2019 (a),(e)		80		85
	Media - 2.48	%					Mining - 1.09%
	21st Century Fox America Inc						Anglo American Capital PLC
	4.75%, 09/15/2044			90		88	1.23%, 04/15/2016(a),(b)		550		549
	5.40%, 10/01/2043			265		283	3.63%, 05/14/2020(a)		360		360
	6.15%, 02/15/2041			235		273	Barrick Gold Corp
	Cable One Inc						3.85%, 04/01/2022		365		354
	5.75%, 06/15/2022(a)			35		35	Barrick North America Finance LLC
	Cablevision Systems Corp						4.40%, 05/30/2021		220		225
	8.00%, 04/15/2020			70		76	BHP Billiton Finance USA Ltd
	CBS Corp						2.05%, 09/30/2018		5		5
	5.75%, 04/15/2020			380		428	FMG Resources August 2006 Pty Ltd
	CCO Holdings LLC / CCO Holdings Capital						6.88%, 04/01/2022(a)		60		42
	Corp						8.25%, 11/01/2019(a)		130		110
	5.13%, 05/01/2023(a)			345		336	9.75%, 03/01/2022(a)		30		31
	Columbus International Inc						Freeport-McMoRan Inc
	7.38%, 03/30/2021(a)			200		215	4.00%, 11/14/2021		340		334
	Comcast Corp						5.40%, 11/14/2034		125		108
	3.38%, 02/15/2025			355		351	Newmont Mining Corp
	4.20%, 08/15/2034			35		34	4.88%, 03/15/2042		260		218
	4.75%, 03/01/2044			25		25	Rio Tinto Finance USA Ltd
	6.40%, 03/01/2040			345		428	3.50%, 11/02/2020		260		271
	6.50%, 11/15/2035			15		19	3.75%, 06/15/2025		265		261
	CSC Holdings LLC						9.00%, 05/01/2019		150		187
	6.75%, 11/15/2021			45		48	Southern Copper Corp
	DIRECTV Holdings LLC / DIRECTV						5.88%, 04/23/2045		100		95
	Financing Co Inc						St Barbara Ltd
	3.80%, 03/15/2022			165		166	8.88%, 04/15/2018(a)		200		190
	4.45%, 04/01/2024			480		491	Taseko Mines Ltd
	6.00%, 08/15/2040			195		202	7.75%, 04/15/2019		40		30
	6.38%, 03/01/2041			135		145	Teck Resources Ltd
	DISH DBS Corp						5.20%, 03/01/2042		55		40
	5.88%, 07/15/2022			85		83			$		3,410
	5.88%, 11/15/2024			165		159
	6.75%, 06/01/2021			175		182	Miscellaneous Manufacturing - 0.53%
							Bombardier Inc
	7.88%, 09/01/2019			274		304	5.50%, 09/15/2018(a)		55		54
	NBCUniversal Enterprise Inc						7.50%, 03/15/2025(a)		80		73
	0.96%, 04/15/2018(a),(b)			720		723
							Ingersoll-Rand Global Holding Co Ltd
	RCN Telecom Services LLC / RCN Capital						2.88%, 01/15/2019		150		152
	Corp
	8.50%, 08/15/2020(a)			125		131	5.75%, 06/15/2043		60		66
	Time Warner Cable Inc						Ingersoll-Rand Luxembourg Finance SA
							3.55%, 11/01/2024		465		455
	4.13%, 02/15/2021			315		325	4.65%, 11/01/2044		60		58
	4.50%, 09/15/2042			195		159	Siemens Financieringsmaatschappij NV
	5.88%, 11/15/2040			5		5	2.15%, 05/27/2020(a)		310		306
	6.55%, 05/01/2037			20		21
	6.75%, 07/01/2018			120		134	Tyco Electronics Group SA
							3.50%, 02/03/2022		460		466

See accompanying notes.

91

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
		Principal							Principal
BONDS (continued)		Amount (000's)        Value (000's)				BONDS (continued)			Amount (000's     Value (000's)
Miscellaneous Manufacturing (continued)						Mortgage Backed Securities (continued)
Tyco Electronics Group SA (continued)						HomeBanc Mortgage Trust 2005-5
7.13%, 10/01/2037	$	20	$	26		0.53%, 01/25/2036(b)		$	724	$	627
		$		1,656		JP Morgan Chase Commercial Mortgage
						Securities Corp
Mortgage Backed Securities - 6.72%						2.03%, 12/15/2047(b)			3,847		334
Banc of America Commercial Mortgage Trust
2007-3						JP Morgan Chase Commercial Mortgage
0.47%, 06/10/2049(a),(b)		300		292		Securities Trust 2006-CIBC17
						5.43%, 12/12/2043			353		366
BB-UBS Trust
2.89%, 06/05/2030(a),(b)		350		346		JP Morgan Chase Commercial Mortgage
						Securities Trust 2010-C1
BCRR Trust 2009-1						5.95%, 06/15/2043(a)			400		439
5.86%, 07/17/2040(a)		220		235
						JP Morgan Chase Commercial Mortgage
CD 2006-CD3 Mortgage Trust						Securities Trust 2011-C5
5.62%, 10/15/2048		365		379		3.15%, 08/15/2046			299		306
Citigroup Commercial Mortgage Trust 2015-						5.50%, 08/15/2046(a),(b)			350		384
GC27
3.57%, 02/10/2048(b)		900		887		JP Morgan Chase Commercial Mortgage
						Securities Trust 2013-C16
Citigroup Commercial Mortgage Trust 2015-						1.52%, 12/15/2046(b)			12,310		757
GC29
3.19%, 04/10/2048(b)		750		738		JPMBB Commercial Mortgage Securities
4.29%, 04/10/2048(b)		500		478		Trust 2014-C24
						4.57%, 11/15/2047(b)			500		504
COMM 2007-C9 Mortgage Trust					LB
5.99%, 12/10/2049(b)		1,000		1,038
						-UBS Commercial Mortgage Trust 2005-
COMM 2013-CCRE11 Mortgage Trust						C7
1.20%,  10/10/2046(b)		6,936		477		5.32%, 11/15/2040			350		352
					LB	-UBS Commercial Mortgage Trust 2007-
Credit Suisse Commercial Mortgage Trust						C1
Series 2006-C5						0.60%, 02/15/2040(b)			15,659		102
0.92%, 12/15/2039(b)		2,742		20
					LB	-UBS Commercial Mortgage Trust 2007-
Credit Suisse Commercial Mortgage Trust						C2
Series 2007-C3						5.43%, 02/15/2040			277		293
5.89%, 06/15/2039(b)		342		360
						Morgan Stanley Bank of America Merrill
Credit Suisse First Boston Mortgage Securities						Lynch Trust 2014-C14
Corp						1.45%, 02/15/2047(b)			9,905		643
0.56%, 11/15/2037(a),(b)		514		—
						Morgan Stanley Bank of America Merrill
4.77%, 07/15/2037		38		38		Lynch Trust 2014-C16
CSMC Series 2009-RR1						1.40%, 06/15/2047(b)			4,466		322
5.38%, 02/15/2040(a)		385		400
						Morgan Stanley Capital I Trust 2007-HQ12
CSMC Series 2009-RR3						5.86%, 04/12/2049(b)			246		246
5.34%, 12/15/2043(a),(b)		340		358
						Morgan Stanley Capital I Trust 2007-IQ13
DBUBS 2011-LC2 Mortgage Trust						5.36%, 03/15/2044(b)			105		110
4.54%, 07/10/2044(a)		750		823
Fannie Mae REMIC Trust 2005-W2						MSBAM Commercial Mortgage Securities
0.39%, 05/25/2035  (b)		135		134		Trust 2012-CKSV
						1.28%, 10/15/2030(a),(b)			3,755		251
Fannie Mae REMICS
2.25%, 07/25/2040		312		307		Residential Asset Securitization Trust 2004-
3.50%, 11/25/2027(b)		404		45		A10
3.50%, 07/25/2028(b)		788		88		5.50%, 02/25/2035			29		30
6.31%, 03/25/2022(b)		124		14		UBS Commercial Mortgage Trust 2012-C1
						3.40%, 05/10/2045(b)			150		155
Freddie Mac REMICS
0.64%, 06/15/2023(b)		13		13		UBS-Barclays Commercial Mortgage Trust
0.79%, 08/15/2018(b)		104		104		2012	-C3
						3.09%, 08/10/2049(b)			255		257
1.25%, 09/15/2033		943		946		UBS-Barclays Commercial Mortgage Trust
2.75%, 03/15/2041		166		170		2012	-C4
3.00%, 09/15/2025(b)		372		25		1.98%, 12/10/2045(a),(b)			1,450		138
3.00%, 03/15/2026(b)		733		57		3.32%, 12/10/2045(a),(b)			500		503
3.00%, 05/15/2027(b)		930		78
3.00%, 10/15/2027(b)		262		30		UBS-Barclays Commercial Mortgage Trust
4.00%, 05/15/2028(b)		5,865		763		2013	-C5
						3.18%, 03/10/2046(b)			335		338
4.00%, 11/15/2038		1,694		265		4.23%, 03/10/2046(a),(b)			175		162
Freddie Mac Structured Agency Credit Risk
Debt Notes						Wachovia Bank Commercial Mortgage Trust
1.04%, 04/25/2024(b)		752		751		Series 2006-C27
						5.77%, 07/15/2045			76		79
Ginnie Mae
4.00%, 07/20/2036(b)		1,141		50		Washington Mutual Mortgage Pass-Through
						Certificates WMALT Series 2006-AR1 Trust
4.50%, 04/16/2044		734		109		0.44%, 02/25/2036(b)			144		108
GS Mortgage Securities Trust 2011-GC5
1.82%, 08/10/2044(a),(b)		15,491		798		WFRBS Commercial Mortgage Trust 2013-
						C12
GS Mortgage Securities Trust 2012-GCJ7						1.62%, 03/15/2048(a),(b)			3,901		291
2.72%, 05/10/2045(b)		2,857		292
GS Mortgage Securities Trust 2013-GC16						WFRBS Commercial Mortgage Trust 2014-
1.71%, 11/10/2046 (b)		2,953		213		C22
						4.07%, 09/15/2057			500		520
GS Mortgage Securities Trust 2013-GCJ12
3.78%, 06/10/2046 (b)		250		252					$		20,990

See accompanying notes.

92

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)     Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
Office & Business Equipment - 0.11%					Oil & Gas (continued)
Xerox Corp					Oasis Petroleum Inc
2.95%, 03/15/2017	$	80	$	82	6.50%, 11/01/2021	$	65	$	65
6.75%, 02/01/2017		10		11	6.88%, 03/15/2022		45		46
6.75%, 12/15/2039		215		239	6.88%, 01/15/2023		140		138
		$		332	Ocean Rig UDW Inc
					7.25%, 04/01/2019(a)		175		131
Oil & Gas - 3.82%					Odebrecht Offshore Drilling Finance Ltd
Anadarko Petroleum Corp					6.75%, 10/01/2023(a)		184		132
3.45%, 07/15/2024		345		340	Pacific Rubiales Energy Corp
6.45%, 09/15/2036		90		104	5.13%, 03/28/2023(a)		250		179
Apache Corp					PDC Energy Inc
4.25%, 01/15/2044		270		234	7.75%, 10/15/2022		170		178
4.75%, 04/15/2043		90		83	Petroleos de Venezuela SA
Baytex Energy Corp					5.25%, 04/12/2017		225		112
5.13%, 06/01/2021(a)		45		42
					Petroleos Mexicanos
BP Capital Markets PLC					4.50%, 01/23/2026(a)		100		98
0.82%, 05/10/2019(b)		650		647
					4.88%, 01/24/2022		150		156
Carrizo Oil & Gas Inc					6.38%, 01/23/2045		150		154
6.25%, 04/15/2023		10		10	Phillips 66
7.50%, 09/15/2020		125		132	4.65%, 11/15/2034		165		161
Chaparral Energy Inc					4.88%, 11/15/2044		85		81
7.63%, 11/15/2022		81		58	Pride International Inc
9.88%, 10/01/2020		90		73	6.88%, 08/15/2020		500		572
Chesapeake Energy Corp					RKI Exploration & Production LLC / RKI
3.53%, 04/15/2019(b)		95		87
					Finance Corp
4.88%, 04/15/2022		70		61	8.50%, 08/01/2021(a)		138		137
6.13%, 02/15/2021		95		89	Rowan Cos Inc
CNOOC Finance 2013 Ltd					5.00%, 09/01/2017		275		284
3.00%, 05/09/2023		350		332	5.40%, 12/01/2042		305		249
CNOOC Nexen Finance 2014 ULC					Seven Generations Energy Ltd
4.25%, 04/30/2024		550		562	6.75%, 05/01/2023(a)		20		20
ConocoPhillips Co					Seventy Seven Operating LLC
1.18%, 05/15/2022(b)		235		237
					6.63%, 11/15/2019		90		71
Continental Resources Inc/OK					Shell International Finance BV
3.80%, 06/01/2024		280		256	3.25%, 05/11/2025		205		203
4.50%, 04/15/2023		170		164	4.38%, 05/11/2045		350		345
Devon Energy Corp					Southwestern Energy Co
2.25%, 12/15/2018		480		481	4.05%, 01/23/2020		310		319
5.00%, 06/15/2045		150		148	Sunoco LP / Sunoco Finance Corp
Dolphin Energy Ltd					6.38%, 04/01/2023(a)		90		94
5.50%, 12/15/2021		250		283	TalismanEnergyInc
Ecopetrol SA					3.75%, 02/01/2021		215		213
5.38%, 06/26/2026		85		84	5.50%, 05/15/2042		300		270
Encana Corp					7.75%, 06/01/2019		325		373
5.15%, 11/15/2041		150		138	Total Capital SA
Ensco PLC					2.13%, 08/10/2018		10		10
5.20%, 03/15/2025		100		99	Ultra Petroleum Corp
EP Energy LLC / Everest Acquisition Finance					6.13%, 10/01/2024(a)		100		88
Inc					Whiting Canadian Holding Co ULC
6.38%, 06/15/2023(a)		65		65
					8.13%, 12/01/2019		25		26
9.38%, 05/01/2020		145		155	Woodside Finance Ltd
Halcon Resources Corp					3.65%, 03/05/2025(a)		80		77
8.63%, 02/01/2020(a)		20		20
					YPF SA
8.88%, 05/15/2021		25		16	8.50%, 07/28/2025(a)		125		124
9.25%, 02/15/2022		50		32	8.88%, 12/19/2018(a)		200		212
9.75%, 07/15/2020		30		20			$		11,921
KazMunayGas National Co JSC
4.40%, 04/30/2023(a)		350		319	Oil & Gas Services - 0.29%
Kerr-McGee Corp					Exterran Partners LP / EXLP Finance Corp
7.88%, 09/15/2031		115		147	6.00%, 10/01/2022		55		52
Linn Energy LLC / Linn Energy Finance					Halliburton Co
Corp					4.75%, 08/01/2043		130		134
6.50%, 05/15/2019		185		149	PHI Inc
Marathon Petroleum Corp					5.25%, 03/15/2019		65		60
4.75%, 09/15/2044		255		233	Weatherford International LLC
Matador Resources Co					6.35%, 06/15/2017		125		134
6.88%, 04/15/2023(a)		10		10	Weatherford International Ltd/Bermuda
Noble Energy Inc					4.50%, 04/15/2022		90		84
3.90%, 11/15/2024		365		360	5.13%, 09/15/2020		85		87
5.05%, 11/15/2044		255		244	5.95%, 04/15/2042		430		363
Northern Blizzard Resources Inc							$		914
7.25%, 02/01/2022(a)		93		89

See accompanying notes.

93

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)   Value (000's)			BONDS (continued)		Amount (000's)  Value (000's)
Other Asset Backed Securities - 2.16%					Pharmaceuticals (continued)
CNH Equipment Trust 2013-D					Valeant Pharmaceuticals International
0.49%, 03/15/2017	$	31	$	31	Inc (continued)
CNH Equipment Trust 2014-C					7.50%, 07/15/2021(a)	$	135	$	145
1.65%, 09/15/2021(b)		500		499	Wyeth LLC
Dell Equipment Finance Trust 2014-1					6.00%, 02/15/2036		90		108
0.64%, 07/22/2016(a)		2,455		2,456	Zoetis Inc
GreatAmerica Leasing Receivables					1.15%, 02/01/2016		75		75
0.61%, 05/15/2016(a),(b)		196		196			$		4,290
JP Morgan Mortgage Acquisition Trust 2007-
CH3					Pipelines - 2.28%
0.34%, 03/25/2037(b)		349		345	Boardwalk Pipelines LP
Kubota Credit Owner Trust 2015-1					3.38%, 02/01/2023		250		227
1.54%, 03/15/2019(a),(b)		700		701	Columbia Pipeline Group Inc
					3.30%, 06/01/2020(a)		345		346
Trade MAPS 1 Ltd
0.89%, 12/10/2018(a),(b)		1,500		1,500	Enable Midstream Partners LP
					2.40%, 05/15/2019(a)		480		464
Volvo Financial Equipment LLC Series 2014-					3.90%, 05/15/2024(a)		120		111
1
0.54%, 11/15/2016(a),(b)		727		727	Enbridge Inc
					0.73%, 06/02/2017(b)		520		514
Washington Mutual Asset-Backed Certificates
WMABS Series 2006-HE1 Trust					3.50%, 06/10/2024		285		266
0.36%, 04/25/2036(b)		294		287	Energy Transfer Equity LP
		$		6,742	5.88%, 01/15/2024		50		52
					Energy Transfer Partners LP
Packaging & Containers - 0.53%					4.05%, 03/15/2025		435		410
Ardagh Packaging Finance PLC / Ardagh					4.15%, 10/01/2020		180		185
Holdings USA Inc					4.90%, 03/15/2035		70		63
3.29%, 12/15/2019(a),(b)		200		195	EnLink Midstream Partners LP
Berry Plastics Corp					4.15%, 06/01/2025		230		224
5.13%, 07/15/2023		25		24	4.40%, 04/01/2024		95		95
5.50%, 05/15/2022		70		70	5.05%, 04/01/2045		150		136
Beverage Packaging Holdings Luxembourg II					Enterprise Products Operating LLC
SA / Beverage Packaging Holdings II					3.70%, 02/15/2026		135		131
5.63%, 12/15/2016(a)		25		25	4.90%, 05/15/2046		220		207
6.00%, 06/15/2017(a)		30		30	Kinder Morgan Energy Partners LP
Coveris Holding Corp					4.70%, 11/01/2042		220		184
10.00%, 06/01/2018 (a)		105		110	5.00%, 10/01/2021		220		233
Crown Cork &Seal Co Inc					5.63%, 09/01/2041		135		127
7.38%, 12/15/2026		152		171	Kinder Morgan Inc/DE
Packaging Corp of America					3.05%, 12/01/2019		280		280
4.50%, 11/01/2023		330		340	ONEOK Partners LP
Reynolds Group Issuer Inc / Reynolds Group					4.90%, 03/15/2025		185		183
Issuer LLC / Reynolds Group Issuer					Sabine Pass Liquefaction LLC
(Luxembourg) S.A.					5.63%, 03/01/2025(a)		175		173
7.88%, 08/15/2019		100		104	6.25%, 03/15/2022		110		114
Rock-Tenn Co					TransCanada PipeLines Ltd
3.50%, 03/01/2020		565		582	4.63%, 03/01/2034		135		134
		$		1,651	5.00%, 10/16/2043		50		50
					7.13%, 01/15/2019		95		110
Pharmaceuticals - 1.37%					Transportadora de Gas Internacional SA ESP
AbbVie Inc					5.70%, 03/20/2022		250		262
2.50%, 05/14/2020		440		436	Western Gas Partners LP
3.60%, 05/14/2025		655		647	3.95%, 06/01/2025		235		226
4.70%, 05/14/2045		285		280	5.45%, 04/01/2044		240		239
Actavis Funding SCS					Williams Cos Inc/The
3.00%, 03/12/2020		455		456	7.88%, 09/01/2021		355		417
4.55%, 03/15/2035		265		252	Williams Partners LP
4.75%, 03/15/2045		165		157	3.60%, 03/15/2022		375		364
Forest Laboratories LLC					5.10%, 09/15/2045		60		53
5.00%, 12/15/2021(a)		660		716
					Williams Partners LP / ACMP Finance Corp
Grifols Worldwide Operations Ltd					4.88%, 05/15/2023		455		449
5.25%, 04/01/2022		200		201	4.88%, 03/15/2024		90		88
Hospira Inc							$		7,117
5.20%, 08/12/2020		275		307
JLL/Delta Dutch Pledgeco BV					Real Estate - 0.13%
8.75%, PIK 9.50%, 05/01/2020(a),(e)		75		76	Crescent Resources LLC / Crescent Ventures
Par Pharmaceutical Cos Inc					Inc
7.38%, 10/15/2020		70		75	10.25%, 08/15/2017 (a)		110		117
Valeant Pharmaceuticals International Inc					Prologis LP
5.38%, 03/15/2020(a)		80		83	4.25%, 08/15/2023		155		159
5.50%, 03/01/2023(a)		45		45	6.88%, 03/15/2020		112		129
5.88%, 05/15/2023(a)		225		231			$		405

See accompanying notes.

94

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)       Value (000's)			BONDS (continued)	Amount (000's)  Value (000's)
	REITS - 0.99	%					Semiconductors (continued)
	AvalonBay Communities Inc						QUALCOMM Inc (continued)
	3.45%, 06/01/2025		$	410	$	403	4.80%, 05/20/2045	$	70	$	67
	DDR Corp						Semiconductor Manufacturing International
	3.63%, 02/01/2025			320		307	Corp
	DuPont Fabros Technology LP						4.13%, 10/07/2019(a)		200		200
	5.88%, 09/15/2021			105		106			$		949
	Equinix Inc
	4.88%, 04/01/2020			35		35	Software - 0.32%
	5.38%, 01/01/2022			35		35	Activision Blizzard Inc
							5.63%, 09/15/2021(a)		130		136
	5.38%, 04/01/2023			115		115	6.13%, 09/15/2023(a)		145		156
	Hospitality Properties Trust
							MSCI Inc
	4.50%, 06/15/2023			90		90	5.25%, 11/15/2024(a)		75		76
	iStar Financial Inc
	4.88%, 07/01/2018			35		35	Oracle Corp
	5.00%, 07/01/2019			15		15	2.95%, 05/15/2025		440		423
	9.00%, 06/01/2017			80		87	4.38%, 05/15/2055		225		209
	Retail Properties of America Inc								$		1,000
	4.00%, 03/15/2025			300		291	Sovereign - 0.47%
	Scentre Group Trust 1 / Scentre Group Trust						Chile Government International Bond
	2						3.13%, 03/27/2025		250		250
	2.38%, 04/28/2021(a)			465		452	Dominican Republic International Bond
	Select Income REIT						5.50%, 01/27/2025(a)		150		150
	2.85%, 02/01/2018			240		243	Kenya Government International Bond
	3.60%, 02/01/2020			260		266	5.88%, 06/24/2019(a)		200		204
	4.15%, 02/01/2022			250		248	Panama Government International Bond
	Ventas Realty LP						4.00%, 09/22/2024		200		201
	1.25%, 04/17/2017			370		369	Poland Government International Bond
				$		3,097	3.00%, 03/17/2023		150		147
							Romanian Government International Bond
	Retail - 0.54%						4.88%, 01/22/2024(a)		170		180
	1011778 BC ULC / New Red Finance Inc
	4.63%, 01/15/2022(a)			70		69	Russian Foreign Bond - Eurobond
							7.50%, 03/31/2030(b)		141		165
	Building Materials Holding Corp
	9.00%, 09/15/2018(a)			105		112	Turkey Government International Bond
	Claire's Stores Inc						4.88%, 04/16/2043		200		182
	9.00%, 03/15/2019(a)			20		17			$		1,479
	CVS Pass-Through Trust						Student Loan Asset Backed Securities - 2.57%
	5.93%, 01/10/2034(a)			174		200	Navient Private Education Loan Trust 2014-
	7.51%, 01/10/2032(a)			53		67	A
	Family Tree Escrow LLC						0.67%, 05/16/2022(a),(b)		311		311
	5.75%, 03/01/2023(a)			55		57	Navient Student Loan Trust 2014-8
	JC Penney Corp Inc						0.46%, 08/25/2020(b)		782		782
	5.65%, 06/01/2020			35		32	Navient Student Loan Trust 2015-1
	Landry's Holdings II Inc						0.49%, 09/26/2022(b)		2,766		2,766
	10.25%, 01/01/2018 (a)			90		93	SLM Private Education Loan Trust 2012-A
	Landry's Inc						1.59%, 08/15/2025(a),(b)		286		288
	9.38%, 05/01/2020(a)			105		113	SLM Private Education Loan Trust 2012-B
	Macy's Retail Holdings Inc						1.29%, 12/15/2021(a),(b)		554		555
	5.90%, 12/01/2016			420		447	SLM Private Education Loan Trust 2012-C
	6.90%, 04/01/2029			25		31	1.29%, 08/15/2023(a),(b)		77		77
	Michaels Stores Inc						SLM Private Education Loan Trust 2012-E
	5.88%, 12/15/2020(a)			91		95	0.94%, 10/16/2023(a),(b)		871		873
	Neiman Marcus Group LTD LLC						SLM Private Education Loan Trust 2013-A
	8.75%, 10/15/2021(a)			65		70	0.79%, 08/15/2022(a),(b)		1,652		1,654
	New Academy Finance Co LLC / New						SLM Student Loan Trust 2008-6
	Academy Finance Corp						0.83%, 10/25/2017(b)		106		106
	8.00%, PIK 8.75%, 06/15/2018(a),(e)			100		101	SLM Student Loan Trust 2013-5
	Rite Aid Corp						0.45%, 05/25/2018(b)		4		4
	6.13%, 04/01/2023(a)			40		41	SLM Student Loan Trust 2013-6
	Suburban Propane Partners LP/Suburban						0.47%, 02/25/2019(b)		622		623
	Energy Finance Corp								$		8,039
	5.75%, 03/01/2025			50		50
	Tops Holding LLC / Tops Markets II Corp						Telecommunications - 3.58%
	8.00%, 06/15/2022(a)			100		100	Altice Finco SA
				$		1,695	7.63%, 02/15/2025(a)		280		269
							8.13%, 01/15/2024(a)		340		343
	Semiconductors - 0.30%						AT&T Inc
	Micron Technology Inc						2.45%, 06/30/2020		230		225
	5.25%, 01/15/2024(a)			145		137	3.40%, 05/15/2025		430		410
	QUALCOMM Inc						4.30%, 12/15/2042		345		296
	2.25%, 05/20/2020			45		45	4.45%, 05/15/2021		295		315
	3.45%, 05/20/2025			235		229	4.50%, 05/15/2035		600		552
	4.65%, 05/20/2035			280		271	4.75%, 05/15/2046		135		123

See accompanying notes.

95

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's)     Value (000's)
Telecommunications (continued)					Transportation - 0.64%
B Communications Ltd					CSX Corp
7.38%, 02/15/2021(a)	$	35	$	38	3.70%, 10/30/2020		$	320	$	338
Bharti Airtel International Netherlands BV					5.50%, 04/15/2041			185		206
5.13%, 03/11/2023(a)		300		313	6.25%, 03/15/2018			200		224
CC Holdings GS V LLC / Crown Castle GS					7.38%, 02/01/2019			170		199
III Corp					Eletson Holdings
3.85%, 04/15/2023		510		501	9.63%, 01/15/2022(a)			110		107
CenturyLink Inc					Hornbeck Offshore Services Inc
5.63%, 04/01/2025(a)		85		77	5.00%, 03/01/2021			65		56
Digicel Group Ltd					Navios Maritime Acquisition Corp / Navios
8.25%, 09/30/2020(a)		400		401	Acquisition Finance US Inc
Eileme 2 AB					8.13%, 11/15/2021(a)			190		187
11.63%, 01/31/2020 (a)		200		222	Navios Maritime Holdings Inc / Navios
Embarq Corp					Maritime Finance II US Inc
8.00%, 06/01/2036		80		89	7.38%, 01/15/2022(a)			140		121
Empresa Nacional de Telecomunicaciones					Navios South American Logistics Inc / Navios
SA					Logistics Finance US Inc
4.75%, 08/01/2026(a)		300		294	7.25%, 05/01/2022(a)			185		177
Goodman Networks Inc					Pelabuhan Indonesia III PT
12.13%, 07/01/2018		95		79	4.88%, 10/01/2024(a)			400		399
Intelsat Jackson Holdings SA								$		2,014
7.25%, 10/15/2020		55		54
Intelsat Luxembourg SA					Trucking & Leasing - 0.08%
7.75%, 06/01/2021		205		171	Jurassic Holdings III Inc
					6.88%, 02/15/2021(a)			55		43
8.13%, 06/01/2023		115		95
Level 3 Communications Inc					Penske Truck Leasing Co Lp / PTL Finance
5.75%, 12/01/2022		55		55	Corp
					3.38%, 02/01/2022(a)			200		194
Level 3 Financing Inc
5.13%, 05/01/2023(a)		35		34				$		237
5.38%, 08/15/2022		50		50	TOTAL BONDS			$		202,910
6.13%, 01/15/2021		40		42				Principal
Ooredoo International Finance Ltd					CONVERTIBLE BONDS - 0.03%			Amount (000's)   Value (000's)
3.88%, 01/31/2028		250		237	Semiconductors - 0.03%
SoftBank Group Corp					Jazz Technologies Inc
4.50%, 04/15/2020(a)		205		206
					8.00%, 12/31/2018			60		99
Sprint Capital Corp
6.88%, 11/15/2028		85		73	TOTAL CONVERTIBLE BONDS			$		99
Sprint Communications Inc
6.00%, 11/15/2022		115		105	Principal
7.00%, 08/15/2020		135		134	SENIOR FLOATING RATE INTERESTS -4.39	%		Amount (000's)   Value (000's)
9.00%, 11/15/2018(a)		45		51	Aerospace & Defense - 0.10%
9.13%, 03/01/2017		25		27	B/E Aerospace Inc, Term Loan B
Sprint Corp					4.01%, 11/19/2021(b)		$	299	$	300
7.13%, 06/15/2024		200		186
7.88%, 09/15/2023		105		102
					Apparel - 0.04%
Telefonica Emisiones SAU					Calceus Acquisition Inc, Term Loan B1
6.42%, 06/20/2016		95		99	5.00%, 09/24/2020(b)			116		111
7.05%, 06/20/2036		25		31
T-Mobile USA Inc
6.00%, 03/01/2023		60		61	Automobile Manufacturers - 0.09%
6.13%, 01/15/2022		20		21	FCA US LLC, Term Loan B
6.25%, 04/01/2021		95		97	2.93%, 05/24/2017(b)			29		29
6.50%, 01/15/2024		30		31	Navistar Inc, Term Loan B
6.63%, 04/28/2021		85		88	5.75%, 08/17/2017(b)			250		250
Verizon Communications Inc								$		279
1.35%, 06/09/2017		410		409
2.04%, 09/14/2018(b)		750		776	Automobile Parts & Equipment - 0.07%
2.63%, 02/21/2020		203		203	Federal-Mogul Holdings Corp, Term Loan C
4.52%, 09/15/2048(a)		451		396	4.75%, 04/02/2021(b)			208		206
5.01%, 08/21/2054		621		570	Goodyear Tire & Rubber Co/The, Term Loan
5.15%, 09/15/2023		495		542	B
					0.00%, 04/30/2019(b),(f)			15		15
6.25%, 04/01/2037		25		28
6.40%, 09/15/2033		32		37				$		221
VimpelCom Holdings BV					Building Materials - 0.09%
7.50%, 03/01/2022(a)		500		489	GYP Holdings III Corp, Term Loan B
Virgin Media Finance PLC					4.75%, 03/26/2021(b)			124		119
6.00%, 10/15/2024(a)		200		203	7.75%, 03/25/2022(b)			160		152
Vodafone Group PLC								$		271
2.50%, 09/26/2022		360		330
Wind Acquisition Finance SA					Chemicals - 0.44%
7.38%, 04/23/2021(a)		590		597	A Schulman Inc, Term Loan B
		$		11,177	4.00%, 05/11/2022(b)			105		105

See accompanying notes.

96

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS			Principal
	(continued)			Amount (000's)                   Value (000's)			(continued)			Amount (000's)        Value (000's)
	Chemicals (continued)						Forest Products & Paper (continued)
	Aruba Investments Inc, Term Loan B						Caraustar Industries Inc, Term Loan
	4.50%, 02/02/2022(b)		$	60	$	60	B (continued)
	Axiall Holdco Inc, Term Loan B						8.00%, 05/01/2019(b)		$	114	$	114
	4.00%, 02/25/2022(b)			111		111	NewPage Corp, Term Loan B
	AZ Chem US Inc, Term Loan						9.50%, 02/05/2021(b)			360		289
	7.50%, 06/10/2022(b)			316		315				$		713
	AZ Chem US Inc, Term Loan B
	4.53%, 06/10/2021(b)			27		27	Healthcare - Products - 0.05%
							Accellent Inc, Term Loan
	Emerald Performance Materials LLC, Term						4.50%, 02/19/2021(b)			54		54
	Loan
	7.75%, 07/22/2022(b)			250		248	ConvaTec Inc, Term Loan B
							4.25%, 06/09/2020(b)			15		15
	Ineos US Finance LLC, Term Loan B
	3.75%, 12/15/2020(b)			212		211	Kinetic Concepts Inc, Term Loan E1
							4.50%, 05/04/2018(b)			87		88
	Methanol Holdings Trinidad Ltd, Term Loan
	B									$		157
	0.00%, 06/16/2022(b),(f)			305		302
							Healthcare - Services - 0.31%
				$		1,379	CHS/Community Health Systems Inc, Term
							Loan F
	Commercial Services - 0.06%						3.53%, 01/25/2018(b)			123		123
	Interactive Data Corp, Term Loan B
	4.75%, 05/02/2021(b)			121		121	CHS/Community Health Systems Inc, Term
	TMS International Corp, Term Loan B						Loan G
	4.50%, 10/04/2020(b)			59		59	3.75%, 12/31/2019(b)			40		40
				$		180	DaVita HealthCare Partners Inc, Term Loan
							B
	Computers - 0.08%						3.50%, 06/18/2021(b)			59		59
	Oberthur Technologies of America Corp,						Lantheus Medical Imaging Inc, Term Loan B
	Term Loan B2						0.00%, 06/24/2022(b),(f),(g)			230		227
	4.50%, 10/18/2019(b)			246		245	MPH Acquisition Holdings LLC, Term Loan
							B
							3.75%, 03/19/2021(b)			203		202
	Consumer Products - 0.08%						Radnet Management Inc, Term Loan B
	Dell International LLC, Term Loan B2						4.28%, 10/10/2018(b)			15		15
	4.00%, 04/29/2020(b)			242		242
							8.00%, 03/25/2021(b)			295		290
										$		956
	Diversified Financial Services - 0.03%
	Delos Finance Sarl, Term Loan B						Insurance - 0.15%
	3.50%, 02/26/2021(b)			100		100	Asurion LLC, Term Loan
							8.50%, 02/19/2021(b)			360		365
							Asurion LLC, Term Loan B1
	Electric - 0.05%						5.00%, 05/24/2019(b)			67		67
	Texas Competitive Electric Holdings Co LLC,						Asurion LLC, Term Loan B2
	Term Loan NONEXT						4.25%, 06/19/2020(b)			52		51
	4.72%, 04/25/2015(b)			285		161				$		483
							Internet - 0.07%
	Electronics - 0.18%						Zayo Group LLC, Term Loan B
	Isola USA Corp, Term Loan B						3.75%, 05/06/2021(b)			227		224
	9.25%, 11/29/2018(b)			292		281
	TTM Technologies Inc, Term Loan B
	6.00%, 05/07/2021(b)			295		290	Iron & Steel - 0.06%
				$		571	Evergreen Skills Lux Sarl, Term Loan
							3.75%, 04/08/2021(b)			183		181
	Entertainment - 0.43%
	CCM Merger Inc, Term Loan B
	4.50%, 07/30/2021(b)			580		580	Lodging - 0.01%
	Lions Gate Entertainment Corp, Term Loan						Hilton Worldwide Finance LLC, Term Loan
	B						B
	5.00%, 03/11/2022(b)			260		260	3.41%, 09/23/2020(b)			40		40
	Peninsula Gaming LLC, Term Loan B
	4.25%, 11/30/2017(b)			122		122
							Machinery - Diversified - 0.04%
	WMG Acquisition Corp, Term Loan B						SIG Combibloc PurchaseCo Sarl, Term Loan
	3.75%, 07/07/2020(b)			400		394	B
				$		1,356	4.25%, 03/11/2022(b)			140		139
	Food - 0.03	%
	HJ Heinz Co, Term Loan B2						Media - 0.33	%
	3.25%, 03/27/2020(b)			105		105	Cumulus Media Holdings Inc, Term Loan B
							4.25%, 12/23/2020(b)			128		121
							iHeartCommunications Inc, Term Loan D-
	Forest Products & Paper - 0.23%						EXT
	Caraustar Industries Inc, Term Loan B						6.94%, 01/30/2019(b)			245		226
	8.00%, 04/26/2019(b)			309		310
							Numericable US LLC, Term Loan B1
							4.50%, 04/23/2020(b)			71		71

See accompanying notes.

97

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's)      Value (000's)			(continued)		Amount (000's)    Value (000's)
	Media (continued)						Retail (continued)
	Numericable US LLC, Term Loan B2						PetSmart Inc, Term Loan B
	4.50%, 04/23/2020(b)		$	61	$	61	4.25%, 03/11/2022(b)		$	120	$	120
	Univision Communications Inc, Term Loan						Staples Inc, Term Loan B
	C3						0.00%, 04/23/2021(b),(f)			155		154
	4.00%, 03/01/2020(b)			24		24				$		1,295
	Univision Communications Inc, Term Loan
	C4						Software - 0.11%
	4.00%, 03/01/2020(b)			190		188	Activision Blizzard Inc, Term Loan B
							3.25%, 07/26/2020(b)			221		222
	WideOpenWest Finance LLC, Term Loan B
	4.50%, 04/01/2019(b)			121		121	First Data Corp, Term Loan B
							4.19%, 03/24/2021(b)			125		125
	WideOpenWest Finance LLC, Term Loan B1
	3.75%, 07/17/2017(b)			204		204				$		347
				$		1,016	Telecommunications - 0.06%
	Mining - 0.08%						Altice Financing SA, Delay-Draw Term Loan
							DD
	FMG Resources August 2006 Pty Ltd, Term						5.50%, 07/03/2019(b)			172		173
	Loan B
	3.07%, 06/30/2019(b)			282		249	NTELOS Inc, Term Loan B
							5.75%, 11/09/2019(b)			34		30
										$		203
	Oil & Gas - 0.18%
	Drillships Financing Holding Inc, Term Loan						Trucking & Leasing - 0.00%
	B1						Fly Funding II Sarl, Term Loan
	6.00%, 03/31/2021(b)			248		202	3.50%, 08/09/2019(b)			10		10
	Seadrill Operating LP, Term Loan B
	4.00%, 02/12/2021(b)			429		323	TOTAL SENIOR FLOATING RATE INTERESTS			$		13,729
	Seventy Seven Operating LLC, Term Loan B						U.S. GOVERNMENT & GOVERNMENT		Principal
	3.75%, 06/17/2021(b)			30		27	AGENCY OBLIGATIONS - 33.43%		Amount (000's)    Value (000's)
				$		552
							Federal Home Loan Mortgage Corporation (FHLMC) - 1.70	%
	Oil & Gas Services - 0.09%						2.25%, 02/01/2037(b)		$	25	$	26
	Navios Maritime Midstream Partners LP,						2.53%, 02/01/2034(b)			5		5
	Term Loan B						4.00%, 02/01/2044			610		649
	5.50%, 06/15/2020(b)			270		268	4.00%, 10/01/2044			879		934
							4.50%, 07/01/2024			58		62
	Pharmaceuticals - 0.32%						5.00%, 05/01/2018			134		140
	DPx Holdings BV, Term Loan B						5.00%, 06/01/2031			267		296
	4.25%, 01/22/2021(b)			104		103	5.00%, 10/01/2035			93		103
	Endo Luxembourg Finance I Co Sarl, Term						5.00%, 06/01/2041			2,322		2,579
	Loan B						6.00%, 03/01/2031			17		19
	0.00%, 06/24/2022(b),(f)			80		80	6.00%, 06/01/2032			47		53
	Grifols Worldwide Operations USA Inc, Term						6.00%, 10/01/2032			31		35
	Loan B						6.00%, 01/01/2038			138		157
	3.19%, 03/05/2021(b)			114		113	6.50%, 04/01/2016			1		1
	Horizon Pharma Inc, Term Loan B						6.50%, 03/01/2029			7		9
	4.50%, 04/29/2021(b)			35		35	6.50%, 05/01/2029			11		12
	Par Pharmaceutical Cos Inc, Term Loan B2						6.50%, 04/01/2031			4		5
	4.00%, 09/30/2019(b)			339		339	6.50%, 02/01/2032			10		12
	Valeant Pharmaceuticals International Inc,						6.50%, 05/01/2032			24		28
	Term Loan BE1						6.50%, 05/01/2032			9		11
	3.50%, 08/05/2020(b)			163		163	6.50%, 04/01/2035			14		16
	Valeant Pharmaceuticals International Inc,						7.00%, 12/01/2029			29		33
	Term Loan BF1						7.00%, 06/01/2030			5		5
	3.76%, 04/01/2022(b)			155		154	7.00%, 12/01/2030			4		4
				$		987	7.00%, 01/01/2031			5		5
							7.00%, 01/01/2031			1		1
	REITS - 0.12	%					7.00%, 02/01/2031			3		3
	iStar Financial Inc, Term Loan A2						7.00%, 12/01/2031			37		38
	7.00%, 03/19/2017(b)			375		388	7.50%, 04/01/2030			5		6
							7.50%, 09/01/2030			4		4
	Retail - 0.41%						7.50%, 03/01/2031			17		19
	Academy Ltd, Term Loan B						8.00%, 09/01/2030			38		40
	0.00%, 06/16/2022(b),(f)			220		220				$		5,310
	4.50%, 08/03/2018(b)			161		161
							Federal National Mortgage Association (FNMA) - 12.81%
	Family Tree Escrow LLC, Term Loan B1						2.13%, 07/01/2034(b)			33		36
	3.50%, 05/26/2022(b)			71		71	2.26%, 07/01/2034(b)			3		3
	Michaels Stores Inc, Term Loan B						2.30%, 03/01/2035(b)			74		79
	3.75%, 01/24/2020(b)			96		95	2.50%, 03/01/2030			977		990
	4.00%, 01/20/2028(b)			179		178	2.50%, 07/01/2030(h)			1,880		1,903
	Neiman Marcus Group LTD LLC, Term						3.00%, 07/01/2029(h)			750		777
	Loan						3.00%, 03/01/2034			754		768
	4.25%, 10/25/2020(b)			298		296	3.00%, 11/01/2042			1,248		1,250
							3.00%, 05/01/2043			301		301

See accompanying notes.

98

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT			Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)       Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's)  Value (000's)
						Government National Mortgage Association (GNMA)
Federal National Mortgage Association (FNMA) (continued)
3.00%, 08/01/2045(h)		$	4,250	$	4,223	(continued)
3.50%, 07/01/2029(h)			900		949		5.00%, 10/20/2039	$	126	$	141
							5.00%, 07/20/2040		59		65
3.50%, 08/01/2034			836		875		5.00%, 02/15/2042		224		249
3.50%, 01/01/2041			73		75
3.50%, 11/01/2042			1,549		1,606		5.50%, 12/20/2033		244		279
							5.50%, 05/20/2035		28		32
3.50%, 07/01/2043			583		604		6.00%, 01/20/2029		46		54
3.50%, 09/01/2044			3,322		3,435
3.50%, 04/01/2045			1,480		1,530		6.00%, 07/20/2029		8		9
3.50%, 04/01/2045			770		796		6.00%, 12/15/2033		39		45
3.50%, 08/01/2045(h)			2,425		2,493		6.00%, 12/20/2036		144		164
4.00%, 10/01/2019			57		60		6.50%, 03/20/2028		7		8
							6.50%, 05/20/2029		7		8
4.00%, 08/01/2020			274		287		6.50%, 12/15/2032		548		626
4.00%, 03/01/2034			766		825
4.00%, 11/01/2040			2,575		2,743		7.00%, 03/15/2031		15		17
4.00%, 09/01/2045(h)			3,300		3,489		7.50%, 05/15/2029		19		20
4.50%, 07/01/2025			112		120		8.00%, 12/15/2030		9		11
4.50%, 04/01/2039			1,658		1,795				$		20,576
4.50%, 11/01/2040			1,661		1,808	U.S. Treasury - 11.05%
4.50%, 09/01/2041			423		459		0.50%, 11/30/2016		275		275
4.50%, 07/01/2044			241		261		0.63%, 08/15/2016		1,280		1,284
4.50%, 07/01/2044			329		357		0.88%, 04/30/2017(i)		850		854
5.00%, 02/01/2035			352		392		1.00%, 08/31/2016		300		302
5.00%, 12/01/2039			70		78		1.25%, 10/31/2015		1,600		1,606
5.00%, 06/01/2040			31		35		1.25%, 01/31/2020		750		740
5.00%, 10/01/2041			456		506		1.38%, 01/31/2020		5,825		5,780
5.50%, 06/01/2019			44		47		1.38%, 03/31/2020		250		248
5.50%, 07/01/2019			25		27		1.38%, 04/30/2020		650		643
5.50%, 07/01/2019			10		10		1.63%, 12/31/2019		3,050		3,063
5.50%, 08/01/2019			34		35		1.75%, 09/30/2019(j)		5,800		5,870
5.50%, 08/01/2019			7		7		1.75%, 04/30/2022		750		736
5.50%, 10/01/2019			64		68		1.88%, 11/30/2021		2,550		2,533
5.50%, 10/01/2019			42		44		2.00%, 10/31/2021		30		30
5.50%, 12/01/2022			46		52		2.00%, 02/15/2025		1,300		1,263
5.50%, 07/01/2033			602		679		2.13%, 05/15/2025		750		736
5.50%, 04/01/2035			60		67		2.38%, 08/15/2024		1,860		1,870
5.50%, 08/01/2036			1,008		1,132		2.63%, 01/31/2018		1,700		1,777
5.50%, 02/01/2037			17		19		3.00%, 11/15/2044		1,850		1,810
5.50%, 05/01/2040			127		144		3.13%, 02/15/2042		940		945
5.50%, 05/01/2040			112		125		3.13%, 08/15/2044		270		270
5.70%, 02/01/2036(b)			34		36		3.75%, 11/15/2043		1,500		1,687
6.00%, 05/01/2031			5		6		4.50%, 02/15/2036		175		220
6.00%, 07/01/2035			296		339				$		34,542
6.00%, 02/01/2037			338		385
6.00%, 02/01/2038			135		154	U.S. Treasury Bill - 1.28%
6.50%, 03/01/2032			11		13		0.13%, 12/10/2015(k)		4,000		3,999
6.50%, 07/01/2037			60		72
6.50%, 07/01/2037			82		96	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
6.50%, 02/01/2038			60		72	OBLIGATIONS			$		104,446
6.50%, 03/01/2038			38		45	Total Investments			$		336,908
6.50%, 09/01/2038			364		418	Liabilities in Excess of Other Assets, Net - (7.82)%			$		(24,432	)
7.00%, 02/01/2032			18		19	TOTAL NET ASSETS - 100.00%			$		312,476
			$		40,019
Government National Mortgage Association (GNMA) -
6.59	%					(a)	Security exempt from registration under Rule 144A of the Securities Act of
1.50%, 07/20/2043(b)			499		505		1933. These securities may be resold in transactions exempt from
1.75%, 01/20/2035(b)			43		45		registration, normally to qualified institutional buyers. At the end of the
2.00%, 04/20/2043(b)			606		625		period, the value of these securities totaled $57,181 or 18.30% of net
3.00%, 02/15/2043			728		738		assets.
3.00%, 07/01/2044			1,500		1,514	(b)	Variable Rate. Rate shown is in effect at June 30, 2015.
3.00%, 07/20/2044			1,136		1,151	(c)	Non-Income Producing Security
3.50%, 10/15/2042			80		83	(d)	Security purchased on a when-issued basis.
3.50%, 07/01/2044			1,700		1,764	(e)	Payment in kind; the issuer has the option of paying additional securities
3.50%, 07/01/2044(h)			4,600		4,772		in lieu of cash.
3.50%, 10/20/2044			437		454	(f)	This Senior Floating Rate Note will settle after June 30, 2015, at which
4.00%, 02/15/2042			305		328		time the interest rate will be determined.
4.00%, 07/01/2044			1,300		1,378	(g)	Fair value of these investments is determined in good faith by the Manager
4.00%, 07/01/2045(h)			2,750		2,926		under procedures established and periodically reviewed by the Board of
4.50%, 09/15/2039			1,161		1,289		Directors. At the end of the period, the fair value of these securities totaled
4.50%, 10/20/2040			220		240		$227 or 0.07% of net assets.
4.50%, 11/15/2040			255		280	(h)	Security was purchased in a "to-be-announced" ("TBA") transaction. See
5.00%, 02/15/2034			499		557		Notes to Financial Statements for additional information.
5.00%, 10/15/2034			178		199

See accompanying notes.

99

Schedule of Investments
Bond & Mortgage Securities Account
June 30, 2015 (unaudited)

(i)	Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the end of the period, the value of these securities totaled $250 or 0.08% of net assets.
(j)	Security or a portion of the security was pledged to cover margin requirements for swap and/or swaption contracts. At the end of the period, the value of these securities totaled $779 or 0.25% of net assets.
(k)	Rate shown is the discount rate of the original purchase.

Portfolio Summary (unaudited)
Sector	Percent
Mortgage Securities	27.82	%
Financial	12.98	%
Asset Backed Securities	12.81	%
Government	12.80	%
Consumer, Non-cyclical	7.67	%
Communications	6.85	%
Energy	6.66	%
Consumer, Cyclical	4.86	%
Exchange Traded Funds	4.59	%
Industrial	3.51	%
Basic Materials	3.00	%
Utilities	2.08	%
Technology	1.82	%
Diversified	0.37	%
Liabilities in Excess of Other Assets, Net	(7.82	)%
TOTAL NET ASSETS	100.00	%
Exchange Cleared Credit Default Swaps
Buy Protection
	(Pay)/						Upfront		Unrealized
	Receive Fixed                 Expiration				Notional		Premiums		Appreciation/
Reference Entity	Rate		Date		Amount        Paid/(Received)      (Depreciation)							Fair Value
CDX.NA.HY.23 5Y	(5.00	)%	12/20/2019	$	2,910	$	(123	) $	(102	)	$	(225	)
CDX.NA.HY.23 5Y	(5.00	)%	12/20/2019		2,619		(147	)	(55	)		(202	)
CDX.NA.HY.23 5Y	(5.00	)%	12/20/2019		485		(33	)	(4	)		(37	)
CDX.NA.HY.24	(5.00	)%	06/20/2020		7,425		(458	)	(6	)		(464	)
Total					$		(761	) $	(167	)	$	(928	)

Amounts in thousands
Futures Contracts
									Unrealized
Type	Long/Short	Contracts		Notional Value		Fair Value	Appreciation/(Depreciation)
US Ultra Bond; September 2015	Long	60	$	9,349	$	9,244		$	(105	)
Total							$		(105	)
Amounts in thousands except contracts

See accompanying notes.

100

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 10.30%			Shares Held		Value (000's)			Principal
							BONDS (continued)	Amount (000's)      Value (000's)
	Publicly Traded Investment Fund - 10.30%
	First American Government Obligations Fund			195,619,578	$	195,620	Agriculture (continued)
							Reynolds American Inc (continued)
	TOTAL INVESTMENT COMPANIES			$		195,620	5.85%, 08/15/2045	$	390	$	409
				Principal			RJ Reynolds Tobacco Co/NC
	BONDS - 34.56	%		Amount (000's) )		Value (000's	6.88%, 05/01/2020		500		582
							8.13%, 06/23/2019		36		43
	Advertising - 0.02%								$		5,380
	Omnicom Group Inc
	4.45%, 08/15/2020		$	128	$	137	Airlines - 0.09%
	Svensk Exportkredit AB						American Airlines 2011-1 Class A Pass
	5.13%, 03/01/2017			218		233	Through Trust
				$		370	5.25%, 07/31/2022		145		156
							American Airlines 2014-1 Class A Pass
	Aerospace & Defense - 0.32%						Through Trust
	Boeing Capital Corp						3.70%, 04/01/2028		388		388
	4.70%, 10/27/2019			33		37	Continental Airlines 2010-1 Class A Pass
	Boeing Co/The						Through Trust
	3.75%, 11/20/2016			51		53	4.75%, 07/12/2022		41		43
	5.88%, 02/15/2040			154		191	Continental Airlines 2012-2 Class A Pass
	7.95%, 08/15/2024			200		272	Through Trust
	Exelis Inc						4.00%, 04/29/2026		184		188
	4.25%, 10/01/2016			128		132	Delta Air Lines 2007-1 Class A Pass Through
	Harris Corp						Trust
	4.40%, 12/15/2020			51		55	6.82%, 02/10/2024		77		89
	L-3 Communications Corp						Southwest Airlines Co
	1.50%, 05/28/2017			250		248	2.75%, 11/06/2019		300		305
	4.95%, 02/15/2021			277		296	UAL 2009-2A Pass Through Trust
	Lockheed Martin Corp						9.75%, 01/15/2017		123		133
	2.13%, 09/15/2016			100		101	United Airlines 2014-2 Class A Pass Through
	3.35%, 09/15/2021			102		105	Trust
	3.60%, 03/01/2035			350		324	3.75%, 03/03/2028		200		198
	4.07%, 12/15/2042			47		44	US Airways 2013-1 Class A Pass Through
	5.50%, 11/15/2039			220		249	Trust
	6.15%, 09/01/2036			290		354	3.95%, 05/15/2027		187		188
	Northrop Grumman Corp								$		1,688
	1.75%, 06/01/2018			500		499
	3.50%, 03/15/2021			277		286	Apparel - 0.02%
	Raytheon Co						NIKE Inc
	3.13%, 10/15/2020			77		80	2.25%, 05/01/2023		200		193
	4.88%, 10/15/2040			154		164	3.63%, 05/01/2043		200		182
	United Technologies Corp								$		375
	3.10%, 06/01/2022			1,950		1,966	Automobile Asset Backed Securities - 0.24%
	4.50%, 04/15/2020			74		81	Ally Auto Receivables Trust 2012-4
	4.50%, 06/01/2042			200		203	0.59%, 01/17/2017		19		19
	5.38%, 12/15/2017			102		112	Ally Auto Receivables Trust 2013-2
	5.70%, 04/15/2040			51		60	1.24%, 11/15/2018		500		500
	6.13%, 07/15/2038			18		22	Americredit Automobile Receivables Trust
	6.70%, 08/01/2028			175		226	2014-4
				$		6,160	1.27%, 07/08/2019(a)		1,000		1,002
	Agriculture - 0.28%						Carmax Auto Owner Trust 2013-2
	Altria Group Inc						0.84%, 11/15/2018		300		299
	4.00%, 01/31/2024			350		355	CarMax Auto Owner Trust 2013-4
	4.75%, 05/05/2021			128		139	0.80%, 07/16/2018		500		500
	5.38%, 01/31/2044			200		211	Fifth Third Auto Trust 2014-3
	9.25%, 08/06/2019			126		158	1.47%, 05/17/2021(a)		500		501
	9.95%, 11/10/2038			57		92	Honda Auto Receivables 2014-4 Owner
	10.20%, 02/06/2039			68		112	Trust
	Archer-Daniels-Midland Co						0.99%, 09/17/2018		500		501
	4.48%, 03/01/2021(a)			128		141	Honda Auto Receivables Owner Trust 2014-
	5.38%, 09/15/2035			892		1,030	3
	Philip Morris International Inc						0.88%, 06/15/2018(a)		500		500
	1.13%, 08/21/2017			100		100	Hyundai Auto Receivables Trust 2012-C
	1.25%, 11/09/2017			500		499	1.06%, 06/15/2018		266		266
	2.50%, 05/16/2016			128		130	World Omni Auto Receivables Trust 2013-B
	2.90%, 11/15/2021			51		51	1.32%, 01/15/2020(a)		515		516
	4.38%, 11/15/2041			51		49			$		4,604
	4.50%, 03/26/2020			131		144
							Automobile Manufacturers - 0.32%
	4.50%, 03/20/2042			400		390	American Honda Finance Corp
	5.65%, 05/16/2018			25		28	1.55%, 12/11/2017		350		351
	6.38%, 05/16/2038			100		123	Daimler Finance North America LLC
	Reynolds American Inc						8.50%, 01/18/2031		102		150
	4.45%, 06/12/2025			220		224
	4.85%, 09/15/2023			350		370

See accompanying notes.

101

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)    Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
	Automobile Manufacturers (continued)						Banks (continued)
	Ford Motor Co						Bank of Montreal (continued)
	4.75%, 01/15/2043		$	400	$	388	1.40%, 04/10/2018	$	750	$	745
	7.45%, 07/16/2031			100		128	1.45%, 04/09/2018		300		298
	Ford Motor Credit Co LLC						2.50%, 01/11/2017		228		233
	1.46%, 03/27/2017			380		378	Bank of Nova Scotia/The
	1.50%, 01/17/2017			500		499	1.10%, 12/13/2016		750		751
	2.15%, 01/09/2018			500		502	1.45%, 04/25/2018		300		299
	4.25%, 02/03/2017			200		208	1.70%, 06/11/2018		1,000		1,000
	4.25%, 09/20/2022			200		208	Barclays Bank PLC
	4.38%, 08/06/2023			350		363	5.13%, 01/08/2020		750		834
	5.00%, 05/15/2018			200		215	5.14%, 10/14/2020		1,000		1,087
	5.88%, 08/02/2021			200		228	6.75%, 05/22/2019		200		232
	PACCAR Financial Corp						BB&T Corp
	1.40%, 11/17/2017			320		321	1.60%, 08/15/2017		200		201
	Toyota Motor Credit Corp						6.85%, 04/30/2019		18		21
	1.13%, 05/16/2017			500		501	BNP Paribas SA
	1.25%, 10/05/2017			400		401	2.38%, 09/14/2017		200		203
	2.05%, 01/12/2017			77		78	2.40%, 12/12/2018		750		759
	2.13%, 07/18/2019			500		502	4.25%, 10/15/2024		750		740
	2.15%, 03/12/2020			500		500	5.00%, 01/15/2021		77		85
	2.63%, 01/10/2023			100		98	BPCE SA
	3.30%, 01/12/2022			77		80	1.61%, 07/25/2017		750		751
				$		6,099	4.00%, 04/15/2024		250		252
							Branch Banking & Trust Co
	Automobile Parts & Equipment - 0.05%						1.45%, 10/03/2016		200		201
	BorgWarner Inc						2.30%, 10/15/2018		750		761
	3.38%, 03/15/2025			500		492	Canadian Imperial Bank of
	Johnson Controls Inc						Commerce/Canada
	1.40%, 11/02/2017			200		199	1.35%, 07/18/2016		300		302
	3.75%, 12/01/2021			77		79	Capital One Financial Corp
	5.00%, 03/30/2020			64		71	2.45%, 04/24/2019		250		250
	5.25%, 12/01/2041			128		134	3.20%, 02/05/2025		400		378
				$		975	3.50%, 06/15/2023		84		83
	Banks - 5.68	%					Capital One NA/Mclean VA
	Abbey National Treasury Services						1.50%, 09/05/2017		500		498
	PLC/London						Citigroup Inc
	2.38%, 03/16/2020			750		748	1.30%, 11/15/2016		250		250
	3.05%, 08/23/2018			500		517	1.55%, 08/14/2017		750		749
	Associated Banc-Corp						1.70%, 04/27/2018		1,000		994
	4.25%, 01/15/2025			500		493	2.40%, 02/18/2020		200		198
	Australia & New Zealand Banking Group						3.50%, 05/15/2023		600		586
	Ltd/New York NY						3.75%, 06/16/2024		500		503
	1.25%, 06/13/2017			400		401	4.05%, 07/30/2022		200		205
	1.50%, 01/16/2018			500		500	4.30%, 11/20/2026		500		489
	Bank of America Corp						4.45%, 01/10/2017		154		161
	1.35%, 11/21/2016			500		500	4.50%, 01/14/2022		454		489
	1.95%, 05/12/2018			460		460	5.50%, 09/13/2025		300		324
	2.00%, 01/11/2018			500		502	5.88%, 01/30/2042		328		384
	2.25%, 04/21/2020			160		157	6.13%, 11/21/2017		328		361
	2.60%, 01/15/2019			750		758	6.13%, 05/15/2018		300		335
	3.30%, 01/11/2023			300		295	6.63%, 06/15/2032		112		133
	3.88%, 03/22/2017			200		208	8.13%, 07/15/2039		228		327
	3.95%, 04/21/2025			830		799	8.50%, 05/22/2019		728		888
	4.13%, 01/22/2024			1,000		1,025	Citizens Bank NA/Providence RI
	4.88%, 04/01/2044			500		508	1.60%, 12/04/2017		500		499
	5.42%, 03/15/2017			201		213	Commonwealth Bank of Australia/New York
	5.63%, 07/01/2020			380		428	NY
	5.65%, 05/01/2018			455		500	1.13%, 03/13/2017		500		500
	5.70%, 01/24/2022			580		658	2.30%, 03/12/2020		750		749
	5.88%, 02/07/2042			228		263	2.50%, 09/20/2018		200		205
	6.00%, 09/01/2017			265		288	Cooperatieve Centrale Raiffeisen-
	6.11%, 01/29/2037			450		504	Boerenleenbank BA/Netherlands
	6.50%, 08/01/2016			890		939	3.38%, 01/19/2017		128		132
	6.88%, 04/25/2018			205		232	3.88%, 02/08/2022		328		341
	7.63%, 06/01/2019			300		356	3.95%, 11/09/2022		300		300
	Bank of America NA						4.50%, 01/11/2021		51		56
	1.13%, 11/14/2016			300		300	5.25%, 05/24/2041		500		548
	1.25%, 02/14/2017			350		350	Cooperatieve Centrale Raiffeisen-
	6.10%, 06/15/2017			1,000		1,083	Boerenleenbank BA/NY
	Bank of Montreal						2.25%, 01/14/2020		300		299
	1.30%, 07/14/2017			750		750

See accompanying notes.

102

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)      Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
Banks (continued)					Banks (continued)
Credit Suisse Group Funding Guernsey Ltd					KFW
3.75%, 03/26/2025(b)	$	750	$	722	0.00%, 04/18/2036(c)	$	380	$	193
Credit Suisse/New York NY					0.50%, 09/15/2016		500		500
1.38%, 05/26/2017		1,300		1,299	0.63%, 12/15/2016		2,250		2,250
3.63%, 09/09/2024		400		398	0.75%, 03/17/2017		1,350		1,351
5.40%, 01/14/2020		200		221	1.00%, 01/26/2018		500		500
Deutsche Bank AG/London					1.25%, 02/15/2017		257		259
1.40%, 02/13/2017		500		499	1.75%, 10/15/2019		750		754
1.88%, 02/13/2018		200		199	1.88%, 04/01/2019		250		254
6.00%, 09/01/2017		344		374	2.00%, 05/02/2025		880		837
Discover Bank/Greenwood DE					2.63%, 01/25/2022		1,257		1,292
2.00%, 02/21/2018		200		200	2.75%, 09/08/2020		300		313
4.25%, 03/13/2026		500		494	4.00%, 01/27/2020		847		932
Fifth Third Bancorp					4.38%, 03/15/2018		295		321
5.45%, 01/15/2017		51		54	4.50%, 07/16/2018		102		112
8.25%, 03/01/2038		385		555	4.88%, 01/17/2017		500		532
Goldman Sachs Group Inc/The					4.88%, 06/17/2019		282		318
3.50%, 01/23/2025		1,000		970	Korea Development Bank/The
4.00%, 03/03/2024		1,000		1,017	2.50%, 03/11/2020		500		502
5.25%, 07/27/2021		502		558	2.88%, 08/22/2018		350		360
5.38%, 03/15/2020		500		557	Landwirtschaftliche Rentenbank
5.63%, 01/15/2017		282		299	0.88%, 09/12/2017		200		200
5.75%, 01/24/2022		228		259	1.75%, 04/15/2019		350		354
6.13%, 02/15/2033		750		895	2.00%, 01/13/2025		300		287
6.15%, 04/01/2018		821		913	2.38%, 09/13/2017		200		206
6.25%, 09/01/2017		1,110		1,215	5.00%, 11/08/2016		102		108
6.25%, 02/01/2041		700		829	Lloyds Bank PLC
6.45%, 05/01/2036		351		396	1.75%, 03/16/2018		750		750
HSBC Holdings PLC					2.35%, 09/05/2019		400		400
4.00%, 03/30/2022		128		134	6.38%, 01/21/2021		51		60
4.25%, 03/14/2024		500		505	Manufacturers & Traders Trust Co
5.10%, 04/05/2021		228		254	2.10%, 02/06/2020		200		197
6.10%, 01/14/2042		154		186	Morgan Stanley
6.50%, 05/02/2036		400		476	2.80%, 06/16/2020		1,000		1,001
6.50%, 09/15/2037		500		603	3.75%, 02/25/2023		200		202
HSBC USA Inc					4.75%, 03/22/2017		400		422
1.50%, 11/13/2017		400		399	5.00%, 11/24/2025		500		523
1.63%, 01/16/2018		300		299	5.55%, 04/27/2017		690		740
2.63%, 09/24/2018		200		204	5.63%, 09/23/2019		1,321		1,480
Industrial & Commercial Bank of China					5.75%, 10/18/2016		590		624
Ltd/New York					5.75%, 01/25/2021		1,050		1,196
2.35%, 11/13/2017		400		403	6.25%, 08/28/2017		375		411
Intesa Sanpaolo SpA					6.38%, 07/24/2042		600		737
2.38%, 01/13/2017		500		503	7.25%, 04/01/2032		1,165		1,540
JP Morgan Chase & Co					MUFG Capital Finance 1 Ltd
1.35%, 02/15/2017		350		350	6.35%, 07/29/2049(a)		1,000		1,047
1.63%, 05/15/2018		300		298	MUFG Union Bank NA
2.25%, 01/23/2020		670		658	2.25%, 05/06/2019		400		400
2.75%, 06/23/2020		1,000		1,001	National Australia Bank Ltd/New York
3.13%, 01/23/2025		1,000		955	1.30%, 07/25/2016		400		403
3.20%, 01/25/2023		1,000		981	2.30%, 07/25/2018		400		406
3.25%, 09/23/2022		300		298	Northern Trust Corp
3.38%, 05/01/2023		400		388	3.95%, 10/30/2025		500		517
3.88%, 09/10/2024		500		492	Oesterreichische Kontrollbank AG
4.40%, 07/22/2020		162		175	1.38%, 02/10/2020		250		246
4.50%, 01/24/2022		257		275	2.00%, 06/03/2016		400		405
4.63%, 05/10/2021		257		278	PNC Bank NA
4.95%, 03/25/2020		57		63	1.30%, 10/03/2016		350		352
5.40%, 01/06/2042		102		113	2.25%, 07/02/2019		1,000		997
5.60%, 07/15/2041		154		175	3.80%, 07/25/2023		400		410
5.63%, 08/16/2043		350		373	PNC Funding Corp
6.30%, 04/23/2019		800		917	2.70%, 09/19/2016		228		232
6.40%, 05/15/2038		200		248	4.38%, 08/11/2020		51		56
JP Morgan Chase Bank NA					5.13%, 02/08/2020		25		28
6.00%, 10/01/2017		1,000		1,090	5.63%, 02/01/2017		102		108
KeyBank NA/Cleveland OH					6.70%, 06/10/2019		25		29
2.25%, 03/16/2020		200		198	Royal Bank of Canada
2.50%, 12/15/2019		500		502	1.25%, 06/16/2017		400		401
KeyCorp					2.15%, 03/06/2020		750		749
5.10%, 03/24/2021		102		113	2.20%, 07/27/2018		400		407

See accompanying notes.

103

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)   Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
Banks (continued)					Beverages (continued)
Royal Bank of Scotland PLC/The					Coca-Cola Co/The (continued)
5.63%, 08/24/2020	$	167	$	188	1.65%, 03/14/2018	$	200	$	202
Santander Bank NA					1.80%, 09/01/2016		77		78
2.00%, 01/12/2018		300		300	3.15%, 11/15/2020		528		551
Societe Generale SA					Coca-Cola Femsa SAB de CV
2.63%, 10/01/2018		300		306	2.38%, 11/26/2018		400		406
State Street Corp					Diageo Capital PLC
3.10%, 05/15/2023		300		294	1.50%, 05/11/2017		200		200
5.38%, 04/30/2017		18		19	4.83%, 07/15/2020		51		56
Sumitomo Mitsui Banking Corp					5.88%, 09/30/2036		219		252
1.45%, 07/19/2016		300		301	Diageo Investment Corp
1.75%, 01/16/2018		300		301	2.88%, 05/11/2022		200		196
2.50%, 07/19/2018		300		306	Dr Pepper Snapple Group Inc
3.20%, 07/18/2022		100		100	2.60%, 01/15/2019		277		279
SunTrust Bank/Atlanta GA					Pepsi Bottling Group Inc/The
2.75%, 05/01/2023		200		192	7.00%, 03/01/2029		300		404
Svenska Handelsbanken AB					PepsiCo Inc
2.25%, 06/17/2019		500		502	2.75%, 03/05/2022		128		128
Toronto-Dominion Bank/The					3.13%, 11/01/2020		128		134
1.13%, 05/02/2017		215		215	4.25%, 10/22/2044		500		490
1.63%, 03/13/2018		750		754	4.50%, 01/15/2020		51		56
2.38%, 10/19/2016		180		183	4.88%, 11/01/2040		128		136
2.63%, 09/10/2018		350		361	5.00%, 06/01/2018		300		329
UBS AG/Stamford CT					5.50%, 01/15/2040		51		58
1.38%, 08/14/2017		890		887	7.90%, 11/01/2018		158		189
4.88%, 08/04/2020		200		221			$		7,486
5.88%, 12/20/2017		150		165
US Bancorp/MN					Biotechnology - 0.27%
1.65%, 05/15/2017		205		208	Amgen Inc
2.95%, 07/15/2022		200		197	1.25%, 05/22/2017		1,000		999
3.00%, 03/15/2022		128		129	2.13%, 05/15/2017		85		86
4.13%, 05/24/2021		77		83	2.50%, 11/15/2016		600		611
US Bank NA/Cincinnati OH					4.10%, 06/15/2021		501		534
1.10%, 01/30/2017		500		501	5.15%, 11/15/2041		77		79
Wachovia Corp					5.38%, 05/15/2043		600		637
5.75%, 02/01/2018		280		309	5.70%, 02/01/2019		12		13
Wells Fargo & Co					5.75%, 03/15/2040		25		28
1.15%, 06/02/2017		650		648	5.85%, 06/01/2017		279		302
1.25%, 07/20/2016		510		512	6.40%, 02/01/2039		262		313
1.50%, 01/16/2018		300		299	6.90%, 06/01/2038		90		113
2.10%, 05/08/2017		450		458	Celgene Corp
2.13%, 04/22/2019		1,000		1,004	2.30%, 08/15/2018		110		112
3.00%, 02/19/2025		890		852	4.63%, 05/15/2044		350		334
3.45%, 02/13/2023		200		199	Gilead Sciences Inc
3.50%, 03/08/2022		180		185	4.40%, 12/01/2021		77		84
4.60%, 04/01/2021		102		112	4.50%, 02/01/2045		300		299
5.38%, 02/07/2035		500		563	4.80%, 04/01/2044		500		515
Wells Fargo Bank NA							$		5,059
5.95%, 08/26/2036		750		898	Building Materials - 0.05%
6.60%, 01/15/2038		250		324	Owens Corning
Wells Fargo Capital X					4.20%, 12/15/2022		1,000		1,014
5.95%, 12/01/2086		200		203
Westpac Banking Corp
1.20%, 05/19/2017		500		501	Chemicals - 0.43%
4.88%, 11/19/2019		225		249	Airgas Inc
		$		107,774	2.38%, 02/15/2020		200		198
					Albemarle Corp
Beverages - 0.39%					5.45%, 12/01/2044		150		150
Anheuser-Busch Cos LLC					CF Industries Inc
5.50%, 01/15/2018		90		99	5.15%, 03/15/2034		500		494
6.50%, 02/01/2043		500		636	6.88%, 05/01/2018		100		113
Anheuser-Busch InBev Worldwide Inc					7.13%, 05/01/2020		100		119
2.50%, 07/15/2022		300		288	Dow Chemical Co/The
3.75%, 07/15/2042		100		88	4.13%, 11/15/2021		201		211
5.00%, 04/15/2020		38		42	4.38%, 11/15/2042		200		182
5.38%, 01/15/2020		68		77	7.38%, 11/01/2029		350		441
6.38%, 01/15/2040		251		314	8.55%, 05/15/2019		144		176
6.88%, 11/15/2019		551		658	9.40%, 05/15/2039		51		77
7.75%, 01/15/2019		478		567	Eastman Chemical Co
8.20%, 01/15/2039		51		76	2.70%, 01/15/2020		400		399
Coca-Cola Co/The					3.60%, 08/15/2022		100		101
1.15%, 04/01/2018		500		497	4.50%, 01/15/2021		51		55

See accompanying notes.

104

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)	Amount (000's)      Value (000's)				BONDS (continued)		Amount (000's)   Value (000's)
Chemicals (continued)					Computers (continued)
Eastman Chemical Co	(continued)				EMC Corp/MA
4.80%, 09/01/2042	$	100	$	96	1.88%, 06/01/2018	$	500	$	501
Ecolab Inc					Hewlett-Packard Co
1.45%, 12/08/2017		300		297	2.60%, 09/15/2017		154		157
4.35%, 12/08/2021		102		110	3.00%, 09/15/2016		128		130
5.50%, 12/08/2041		307		335	3.75%, 12/01/2020		750		773
EI du Pont de Nemours & Co					4.65%, 12/09/2021		180		191
2.80%, 02/15/2023		200		195	6.00%, 09/15/2041		154		152
4.15%, 02/15/2043		100		96	International Business Machines Corp
4.25%, 04/01/2021		177		192	1.25%, 02/08/2018		500		499
4.63%, 01/15/2020		25		27	1.63%, 05/15/2020		700		681
6.00%, 07/15/2018		200		224	5.60%, 11/30/2039		92		105
LyondellBasell Industries NV					5.70%, 09/14/2017		180		197
5.00%, 04/15/2019		300		325	5.88%, 11/29/2032		200		240
5.75%, 04/15/2024		100		114	6.22%, 08/01/2027		351		437
Methanex Corp					Seagate HDD Cayman
3.25%, 12/15/2019		300		302	4.75%, 06/01/2023		500		508
Monsanto Co							$		9,201
1.85%, 11/15/2018		280		281
4.20%, 07/15/2034		448		408	Consumer Products - 0.04%
5.88%, 04/15/2038		317		349	Avery Dennison Corp
Mosaic Co/The					5.38%, 04/15/2020		25		28
4.25%, 11/15/2023		146		150	Clorox Co/The
Potash Corp of Saskatchewan Inc					3.80%, 11/15/2021		128		135
3.63%, 03/15/2024		500		505	Kimberly-Clark Corp
4.88%, 03/30/2020		51		56	2.40%, 03/01/2022		257		251
PPG Industries Inc					2.40%, 06/01/2023		150		145
3.60%, 11/15/2020		251		262	3.70%, 06/01/2043		150		137
Praxair Inc					7.50%, 11/01/2018		18		21
2.20%, 08/15/2022		300		286			$		717
Rockwood Specialties Group Inc					Cosmetics & Personal Care - 0.11%
4.63%, 10/15/2020		300		312	Colgate-Palmolive Co
Sigma-Aldrich Corp					2.95%, 11/01/2020		154		160
3.38%, 11/01/2020		330		343	Procter & Gamble Co/The
Valspar Corp/The					2.30%, 02/06/2022		411		408
4.40%, 02/01/2045		300		273	3.10%, 08/15/2023		350		356
		$		8,254	4.70%, 02/15/2019		177		195
Commercial Services - 0.12%					5.50%, 02/01/2034		350		422
Lender Processing ServicesInc / Black Knight					6.45%, 01/15/2026		500		638
Lending Solutions Inc							$		2,179
5.75%, 04/15/2023		200		211	Credit Card Asset Backed Securities - 0.31%
Massachusetts Institute of Technology					Capital One Multi-Asset Execution Trust
4.68%, 07/01/2114		250		251	5.75%, 07/15/2020		476		522
MasterCard Inc					Chase Issuance Trust
2.00%, 04/01/2019		300		301	0.54%, 10/16/2017(a)		650		650
McGraw Hill Financial Inc					Citibank Credit Card Issuance Trust
6.55%, 11/15/2037		51		58	1.02%, 02/22/2019(a)		600		600
Moody's Corp					1.11%, 07/23/2018		500		501
5.25%, 07/15/2044		500		514	2.68%, 06/07/2023(a)		1,000		1,021
Verisk Analytics Inc					2.88%, 01/23/2023		500		515
4.00%, 06/15/2025		500		490	Discover Card Execution Note Trust
Western Union Co/The					0.69%, 08/15/2018		1,000		1,000
5.25%, 04/01/2020		25		27	Synchrony Credit Card Master Note Trust
Yale University					2014-1
2.09%, 04/15/2019		400		404	1.60%, 04/15/2021(a)		1,000		999
		$		2,256			$		5,808
Computers - 0.48%					Distribution & Wholesale - 0.03%
Apple Inc					WW Grainger Inc
1.00%, 05/03/2018		300		297	4.60%, 06/15/2045		500		501
1.05%, 05/05/2017		1,000		1,003
2.00%, 05/06/2020		520		517
2.40%, 05/03/2023		300		287	Diversified Financial Services - 0.99%
2.85%, 05/06/2021		500		507	Air Lease Corp
3.20%, 05/13/2025		410		408	3.38%, 01/15/2019		400		408
3.45%, 05/06/2024		400		408	American Express Co
3.85%, 05/04/2043		300		273	2.65%, 12/02/2022		400		385
4.38%, 05/13/2045		500		493	3.63%, 12/05/2024		500		487
Computer Sciences Corp					6.15%, 08/28/2017		128		140
4.45%, 09/15/2022		100		103	7.00%, 03/19/2018		282		320
6.50%, 03/15/2018		302		334

See accompanying notes.

105

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)    Value (000's)			BONDS (continued)		Amount (000's)  Value (000's)
Diversified Financial Services (continued)					Electric (continued)
American Express Credit Corp					Appalachian Power Co
1.55%, 09/22/2017	$	400	$	401	6.70%, 08/15/2037	$	277	$	345
2.25%, 08/15/2019		500		501	7.00%, 04/01/2038		120		152
2.80%, 09/19/2016		435		444	Arizona Public Service Co
Ameriprise Financial Inc					3.35%, 06/15/2024		200		201
4.00%, 10/15/2023		200		209	4.50%, 04/01/2042		77		77
7.30%, 06/28/2019		600		714	Baltimore Gas & Electric Co
Bear Stearns Cos LLC/The					5.90%, 10/01/2016		69		73
5.55%, 01/22/2017		51		54	Berkshire Hathaway Energy Co
6.40%, 10/02/2017		328		361	2.00%, 11/15/2018		750		754
7.25%, 02/01/2018		444		503	3.75%, 11/15/2023		1,000		1,023
BlackRock Inc					6.13%, 04/01/2036		156		184
3.38%, 06/01/2022		200		206	CMS Energy Corp
3.50%, 03/18/2024		500		508	5.05%, 03/15/2022		500		550
5.00%, 12/10/2019		25		28	Commonwealth Edison Co
Capital One Bank USA NA					4.00%, 08/01/2020		10		11
1.15%, 11/21/2016		200		199	5.80%, 03/15/2018		212		236
2.30%, 06/05/2019		400		397	5.88%, 02/01/2033		300		353
3.38%, 02/15/2023		300		291	Consolidated Edison Co of New York Inc
Charles Schwab Corp/The					4.20%, 03/15/2042		128		122
2.20%, 07/25/2018		300		304	5.50%, 12/01/2039		400		457
CME Group Inc/IL					5.85%, 03/15/2036		51		60
3.00%, 03/15/2025		500		486	6.65%, 04/01/2019		51		59
5.30%, 09/15/2043		200		221	6.75%, 04/01/2038		125		162
Credit Suisse USA Inc					Consumers Energy Co
7.13%, 07/15/2032		300		389	3.13%, 08/31/2024		500		497
GE Capital Trust I					Dominion Resources Inc/VA
6.38%, 11/15/2067		15		16	4.70%, 12/01/2044		300		293
General Electric Capital Corp					4.90%, 08/01/2041		77		78
2.20%, 01/09/2020		1,110		1,110	5.95%, 06/15/2035		800		906
2.30%, 04/27/2017		257		262	DTE Electric Co
2.30%, 01/14/2019		500		507	3.45%, 10/01/2020		405		425
4.63%, 01/07/2021		77		85	DTE Energy Co
5.30%, 02/11/2021		308		346	3.50%, 06/01/2024		500		501
5.38%, 10/20/2016		554		584	Duke Energy Carolinas LLC
5.50%, 01/08/2020		295		334	3.75%, 06/01/2045		500		456
5.63%, 09/15/2017		154		168	3.90%, 06/15/2021		410		437
5.63%, 05/01/2018		800		885	4.00%, 09/30/2042		100		95
5.88%, 01/14/2038		266		318	5.30%, 02/15/2040		12		14
6.00%, 08/07/2019		181		207	Duke Energy Corp
6.15%, 08/07/2037		155		193	3.75%, 04/15/2024		500		509
6.38%, 11/15/2067(a)		300		323	Duke Energy Florida Inc
6.75%, 03/15/2032		881		1,144	4.55%, 04/01/2020		77		85
6.88%, 01/10/2039		1,000		1,343	5.65%, 06/15/2018		128		143
HSBC Finance Corp					5.65%, 04/01/2040		25		30
6.68%, 01/15/2021		349		404	6.40%, 06/15/2038		66		85
Jefferies Group LLC					Duke Energy Indiana Inc
6.50%, 01/20/2043		200		195	3.75%, 07/15/2020		37		39
6.88%, 04/15/2021		27		31	4.20%, 03/15/2042		128		125
8.50%, 07/15/2019		12		14	6.12%, 10/15/2035		77		92
Murray Street Investment Trust I					6.45%, 04/01/2039		300		385
4.65%, 03/09/2017(a)		257		270	Duke Energy Ohio Inc
NASDAQ OMX Group Inc/The					5.45%, 04/01/2019		128		143
4.25%, 06/01/2024		350		356	Duke Energy Progress Inc
National Rural Utilities Cooperative Finance					4.15%, 12/01/2044		300		290
Corp					Entergy Arkansas Inc
3.05%, 02/15/2022		102		103	3.70%, 06/01/2024		500		522
5.45%, 04/10/2017		400		429	3.75%, 02/15/2021		25		26
10.38%, 11/01/2018		218		277	Entergy Corp
Nomura Holdings Inc					4.70%, 01/15/2017		128		133
2.75%, 03/19/2019		500		505	5.13%, 09/15/2020		89		97
6.70%, 03/04/2020		129		151	Exelon Generation Co LLC
Synchrony Financial					5.20%, 10/01/2019		102		112
4.25%, 08/15/2024		300		301	6.25%, 10/01/2039		344		380
		$		18,817	FirstEnergy Solutions Corp
					6.80%, 08/15/2039		101		104
Electric - 1.67%					Florida Power & Light Co
Alabama Power Co					4.05%, 10/01/2044		500		485
2.80%, 04/01/2025		500		479	5.13%, 06/01/2041		154		171
Ameren Illinois Co					5.63%, 04/01/2034		25		30
2.70%, 09/01/2022		300		295	5.69%, 03/01/2040		48		57

See accompanying notes.

106

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)   Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
Electric (continued)					Electric (continued)
Georgia Power Co					PSEG Power LLC (continued)
4.25%, 12/01/2019	$	77	$	84	5.13%, 04/15/2020	$	300	$	331
4.30%, 03/15/2042		228		216	Public Service Co of Colorado
Great Plains Energy Inc					3.95%, 03/15/2043		100		97
4.85%, 06/01/2021		77		84	4.75%, 08/15/2041		550		591
Hydro-Quebec					Public Service Co of New Mexico
1.38%, 06/19/2017		300		303	7.95%, 05/15/2018		154		179
8.05%, 07/07/2024		102		139	Public Service Electric & Gas Co
Iberdrola International BV					3.50%, 08/15/2020		73		77
6.75%, 07/15/2036		128		157	3.65%, 09/01/2042		200		179
Interstate Power & Light Co					Puget Sound Energy Inc
3.25%, 12/01/2024		400		402	4.43%, 11/15/2041		77		77
LG&E and KU Energy LLC					5.80%, 03/15/2040		351		423
3.75%, 11/15/2020		77		80	San Diego Gas & Electric Co
Louisville Gas & Electric Co					1.91%, 02/01/2022		500		502
5.13%, 11/15/2040		51		56	5.35%, 05/15/2040		84		100
MidAmerican Energy Co					South Carolina Electric & Gas Co
3.50%, 10/15/2024		750		764	5.45%, 02/01/2041		77		87
Mississippi Power Co					Southern California Edison Co
4.25%, 03/15/2042		100		89	1.13%, 05/01/2017		250		250
Nevada Power Co					2.40%, 02/01/2022		300		292
5.45%, 05/15/2041		150		171	4.05%, 03/15/2042		318		305
6.50%, 05/15/2018		77		88	5.50%, 03/15/2040		102		119
6.65%, 04/01/2036		400		516	5.95%, 02/01/2038		117		142
7.13%, 03/15/2019		12		14	Southern Co/The
NextEra Energy Capital Holdings Inc					2.15%, 09/01/2019		500		495
4.50%, 06/01/2021		351		379	Southern Power Co
NiSource Finance Corp					5.25%, 07/15/2043		200		212
5.95%, 06/15/2041		525		611	Southwestern Electric Power Co
6.40%, 03/15/2018		86		96	6.20%, 03/15/2040		51		62
Northern States Power Co/MN					6.45%, 01/15/2019		125		142
5.25%, 03/01/2018		41		45	Tampa Electric Co
5.35%, 11/01/2039		82		95	4.35%, 05/15/2044		200		201
NorthWestern Corp					TransAlta Corp
4.18%, 11/15/2044		300		294	6.50%, 03/15/2040		25		23
NSTAR Electric Co					Union Electric Co
2.38%, 10/15/2022		750		714	3.50%, 04/15/2024		500		511
Oglethorpe Power Corp					3.65%, 04/15/2045		500		447
4.20%, 12/01/2042		250		232	6.40%, 06/15/2017		77		84
Ohio Edison Co					Virginia Electric & Power Co
8.25%, 10/15/2038		119		174	2.75%, 03/15/2023		500		488
Oklahoma Gas & Electric Co					4.65%, 08/15/2043		250		259
4.00%, 12/15/2044		200		188	6.00%, 05/15/2037		77		94
Oncor Electric Delivery Co LLC					8.88%, 11/15/2038		10		15
5.00%, 09/30/2017		400		431	WEC Energy Group Inc
5.25%, 09/30/2040		51		57	3.55%, 06/15/2025		110		110
6.80%, 09/01/2018		374		433	Westar Energy Inc
7.25%, 01/15/2033		300		403	5.10%, 07/15/2020		167		187
Pacific Gas & Electric Co					Wisconsin Power & Light Co
3.25%, 06/15/2023		1,000		994	4.10%, 10/15/2044		400		388
3.50%, 10/01/2020		25		26			$		31,647
4.45%, 04/15/2042		102		100
5.40%, 01/15/2040		128		142	Electrical Components & Equipment - 0.01%
6.05%, 03/01/2034		452		543	Emerson Electric Co
PacifiCorp					2.63%, 02/15/2023		100		97
5.65%, 07/15/2018		70		78	4.88%, 10/15/2019		25		28
6.25%, 10/15/2037		92		115			$		125
PECO Energy Co					Electronics - 0.15%
2.38%, 09/15/2022		100		95	Arrow Electronics Inc
4.80%, 10/15/2043		250		267	3.00%, 03/01/2018		300		305
PPL Capital Funding Inc					4.50%, 03/01/2023		200		204
3.40%, 06/01/2023		300		299	Corning Inc
4.70%, 06/01/2043		100		100	4.75%, 03/15/2042		102		104
PPL Electric Utilities Corp					Honeywell International Inc
2.50%, 09/01/2022		200		194	3.35%, 12/01/2023		265		271
Progress Energy Inc					5.30%, 03/01/2018		128		141
3.15%, 04/01/2022		128		128	5.38%, 03/01/2041		77		91
7.75%, 03/01/2031		136		184	5.70%, 03/15/2037		12		14
PSEG Power LLC					Jabil Circuit Inc
2.45%, 11/15/2018		180		181	4.70%, 09/15/2022		100		101
2.75%, 09/15/2016		77		79

See accompanying notes.

107

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal				Principal
BONDS (continued)	Amount (000's)      Value (000's)				BONDS (continued)	Amount (000's)   Value (000's)
Electronics (continued)					Finance - Mortgage Loan/Banker (continued)
Keysight Technologies Inc					Fannie Mae (continued)
3.30%, 10/30/2019(b)	$	500	$	502	6.63%, 11/15/2030	$	602	$	851
Koninklijke Philips NV					7.13%, 01/15/2030		199		295
5.00%, 03/15/2042		128		127	7.25%, 05/15/2030		780		1,163
5.75%, 03/11/2018		10		11	Federal Home Loan Banks
Thermo Fisher Scientific Inc					0.50%, 09/28/2016		300		300
1.85%, 01/15/2018		476		475	0.63%, 11/23/2016		750		750
2.40%, 02/01/2019		500		500	0.63%, 12/28/2016		1,200		1,201
4.70%, 05/01/2020		51		56	0.63%, 05/30/2017		500		499
		$		2,902	0.88%, 05/24/2017		250		251
					1.00%, 06/21/2017		500		503
Engineering & Construction - 0.00%					1.13%, 12/08/2017		750		753
ABB Finance USA Inc					1.30%, 06/05/2018		500		500
2.88%, 05/08/2022		100		98	1.38%, 03/09/2018		1,000		1,009
					1.50%, 02/28/2017		1,000		1,002
Environmental Control - 0.11%					1.63%, 12/09/2016		200		203
Republic Services Inc					1.63%, 06/14/2019		500		502
4.75%, 05/15/2023		51		55	1.75%, 12/14/2018		2,000		2,034
5.25%, 11/15/2021		200		224	4.75%, 12/16/2016		760		805
5.50%, 09/15/2019		104		116	4.88%, 05/17/2017		320		345
6.20%, 03/01/2040		809		959	5.00%, 11/17/2017		690		757
Waste Management Inc					5.38%, 09/30/2022		500		600
3.90%, 03/01/2035		200		184	5.50%, 07/15/2036		180		233
4.10%, 03/01/2045		200		183	5.63%, 06/11/2021		350		420
4.60%, 03/01/2021		350		385	Freddie Mac
		$		2,106	0.50%, 01/27/2017		1,000		999
					0.75%, 01/12/2018		1,000		995
Federal & Federally Sponsored Credit - 0.01%					0.88%, 10/14/2016		1,000		1,006
Federal Farm Credit Banks					0.88%, 02/22/2017		1,000		1,005
0.54%, 11/07/2016		200		200	0.88%, 03/07/2018		500		498
					1.00%, 03/08/2017		1,500		1,509
Finance - Mortgage Loan/Banker - 3.06%					1.00%, 06/29/2017		500		503
Fannie Mae					1.00%, 07/28/2017		750		753
0.00%, 06/01/2017(c)		154		152	1.00%, 09/29/2017		1,200		1,203
0.00%, 10/09/2019(c)		1,390		1,270	1.02%, 04/30/2018		775		770
0.63%, 08/26/2016		1,000		1,002	1.20%, 06/12/2018		640		638
0.75%, 04/20/2017		1,500		1,502	1.25%, 05/12/2017		257		260
0.88%, 08/28/2017		500		501	1.25%, 08/01/2019		500		495
0.88%, 10/26/2017		1,000		1,000	1.25%, 10/02/2019		1,000		987
0.88%, 12/20/2017		800		799	1.38%, 05/01/2020		1,000		986
0.88%, 12/27/2017		450		449	1.40%, 08/22/2019		500		498
0.88%, 02/08/2018		1,000		998	2.00%, 08/25/2016		500		509
0.88%, 05/21/2018		1,500		1,491	2.38%, 01/13/2022		1,257		1,273
0.95%, 08/23/2017		700		700	3.00%, 01/18/2028		205		198
1.00%, 09/27/2017		300		301	3.75%, 03/27/2019		1,052		1,143
1.00%, 12/28/2017		500		498	4.88%, 06/13/2018		212		235
1.00%, 04/30/2018		575		571	5.00%, 02/16/2017		102		109
1.07%, 07/28/2017		675		677	5.00%, 04/18/2017		257		277
1.07%, 09/27/2017		300		300	5.13%, 10/18/2016		500		531
1.13%, 04/27/2017		500		504	5.13%, 11/17/2017		180		198
1.13%, 03/28/2018		200		200	5.50%, 07/18/2016		321		338
1.13%, 04/30/2018		500		499	5.50%, 08/23/2017		231		254
1.13%, 07/20/2018		500		500	6.25%, 07/15/2032		231		321
1.15%, 02/28/2018		400		400	6.75%, 03/15/2031		577		827
1.25%, 09/28/2016		321		324			$		58,070
1.25%, 01/30/2017		1,192		1,204	Food - 0.52%
1.38%, 11/15/2016		257		260	Campbell Soup Co
1.50%, 06/22/2020		1,000		988	3.05%, 07/15/2017		128		132
1.55%, 10/29/2019		250		248	3.30%, 03/19/2025		300		294
1.63%, 11/27/2018		750		759	4.25%, 04/15/2021		51		55
1.63%, 01/21/2020		1,000		999	ConAgra Foods Inc
1.75%, 09/12/2019		300		302	3.20%, 01/25/2023		724		677
1.75%, 11/26/2019		750		754	3.25%, 09/15/2022		100		93
1.88%, 09/18/2018		1,300		1,328	4.65%, 01/25/2043		66		56
2.63%, 09/06/2024		750		750	Delhaize Group
5.00%, 02/13/2017		64		69	5.70%, 10/01/2040		102		103
5.00%, 05/11/2017		64		69	General Mills Inc
5.25%, 09/15/2016		701		741	3.15%, 12/15/2021		77		78
5.38%, 06/12/2017		321		350	5.65%, 02/15/2019		75		84
5.63%, 07/15/2037		200		264	5.70%, 02/15/2017		500		535
6.00%, 04/18/2036		51		53

See accompanying notes.

108

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)        Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
	Food (continued)						Healthcare - Products - 0.41%
	HJ Heinz Co						Baxter International Inc
	3.95%, 07/15/2025(b),(d)		$	500	$	503	1.85%, 06/15/2018	$	500	$	498
	JM Smucker Co/The						2.40%, 08/15/2022		250		237
	1.75%, 03/15/2018(b)			300		300	4.25%, 03/15/2020		51		55
	4.38%, 03/15/2045(b)			400		368	5.90%, 09/01/2016		18		19
	Kellogg Co						Becton Dickinson and Co
	1.75%, 05/17/2017			1,000		1,005	2.68%, 12/15/2019		350		350
	4.00%, 12/15/2020			112		119	4.69%, 12/15/2044		250		242
	4.15%, 11/15/2019			300		320	5.00%, 11/12/2040		51		51
	Kraft Foods Group Inc						Boston Scientific Corp
	3.50%, 06/06/2022			300		301	3.85%, 05/15/2025		500		485
	5.00%, 06/04/2042			200		199	4.13%, 10/01/2023		350		355
	5.38%, 02/10/2020			95		106	6.00%, 01/15/2020		51		58
	6.50%, 02/09/2040			75		88	7.38%, 01/15/2040		51		63
	6.88%, 01/26/2039			161		197	Covidien International Finance SA
	Kroger Co/The						6.00%, 10/15/2017		123		136
	3.30%, 01/15/2021			321		328	Danaher Corp
	3.40%, 04/15/2022			154		155	5.63%, 01/15/2018		128		142
	5.15%, 08/01/2043			300		316	Medtronic Inc
	5.40%, 07/15/2040			25		27	0.88%, 02/27/2017		250		250
	6.15%, 01/15/2020			12		14	2.50%, 03/15/2020(b)		350		351
	6.40%, 08/15/2017			18		20	2.75%, 04/01/2023		200		193
	7.50%, 04/01/2031			400		515	3.15%, 03/15/2022(b)		500		502
	Mondelez International Inc						3.50%, 03/15/2025(b)		1,350		1,345
	2.25%, 02/01/2019			541		542	4.00%, 04/01/2043		150		139
	6.50%, 02/09/2040			139		172	4.45%, 03/15/2020		102		111
	Sysco Corp						4.63%, 03/15/2045(b)		600		608
	3.00%, 10/02/2021			1,000		1,010	St Jude Medical Inc
	Tyson Foods Inc						3.25%, 04/15/2023		600		592
	2.65%, 08/15/2019			350		352	Stryker Corp
	5.15%, 08/15/2044			350		360	4.10%, 04/01/2043		200		183
	Unilever Capital Corp						4.38%, 01/15/2020		25		27
	2.20%, 03/06/2019			250		252	4.38%, 05/15/2044		200		194
	5.90%, 11/15/2032			230		294	Zimmer Biomet Holdings Inc
				$		9,970	1.45%, 04/01/2017		300		300
							4.45%, 08/15/2045		300		275
	Forest Products & Paper - 0.06%								$		7,761
	Georgia-Pacific LLC
	7.75%, 11/15/2029			51		69	Healthcare - Services - 0.38%
	8.00%, 01/15/2024			228		293	Aetna Inc
	International Paper Co						1.50%, 11/15/2017		100		100
	4.75%, 02/15/2022			413		447	4.13%, 06/01/2021		102		109
	7.30%, 11/15/2039			25		31	4.13%, 11/15/2042		100		89
	7.50%, 08/15/2021			136		170	6.63%, 06/15/2036		105		129
	Plum Creek Timberlands LP						6.75%, 12/15/2037		112		141
	4.70%, 03/15/2021			51		54	Anthem Inc
				$		1,064	2.30%, 07/15/2018		500		503
							3.30%, 01/15/2023		300		288
	Gas - 0.18	%					4.65%, 01/15/2043		100		92
	Atmos Energy Corp						4.85%, 08/15/2054		500		461
	4.13%, 10/15/2044			400		382	5.85%, 01/15/2036		250		265
	CenterPoint Energy Inc						Cigna Corp
	6.50%, 05/01/2018			77		87	5.38%, 02/15/2042		128		138
	Dominion Gas Holdings LLC						Coventry Health Care Inc
	1.05%, 11/01/2016			500		499	5.45%, 06/15/2021		500		563
	4.60%, 12/15/2044			350		330	Dignity Health
	ONE Gas Inc						2.64%, 11/01/2019		500		505
	2.07%, 02/01/2019			500		500	Howard Hughes Medical Institute
	Piedmont Natural Gas Co Inc						3.50%, 09/01/2023		400		412
	4.10%, 09/18/2034			500		493	Humana Inc
	Sempra Energy						4.95%, 10/01/2044		300		294
	6.00%, 10/15/2039			112		133	Laboratory Corp of America Holdings
	6.15%, 06/15/2018			120		135	4.63%, 11/15/2020		500		541
	Southern California Gas Co						Memorial Sloan-Kettering Cancer Center
	3.15%, 09/15/2024			500		499	4.20%, 07/01/2055		250		226
	4.45%, 03/15/2044			400		415	Quest Diagnostics Inc
				$		3,473	3.50%, 03/30/2025		500		475
	Hand & Machine Tools - 0.01%						4.70%, 04/01/2021		102		110
	Stanley Black &Decker Inc						4.75%, 01/30/2020		3		3
	2.90%, 11/01/2022			200		197	UnitedHealth Group Inc
							1.40%, 10/15/2017		400		401
							2.88%, 03/15/2022		180		175

See accompanying notes.

109

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)	Amount (000's)   Value (000's)				BONDS (continued)		Amount (000's)   Value (000's)
Healthcare - Services (continued)					Insurance (continued)
UnitedHealth Group Inc	(continued)				Markel Corp
4.38%, 03/15/2042	$	750	$	727	5.00%, 03/30/2043	$	200	$	197
4.70%, 02/15/2021		90		99	Marsh & McLennan Cos Inc
6.50%, 06/15/2037		77		97	2.35%, 09/10/2019		400		401
6.88%, 02/15/2038		141		186	2.35%, 03/06/2020		300		299
		$		7,129	MetLife Inc
					3.00%, 03/01/2025		300		287
Holding Companies - Diversified - 0.01%					3.60%, 04/10/2024		250		252
Brixmor Operating Partnership LP					4.37%, 09/15/2023(a)		200		213
3.85%, 02/01/2025		300		288	5.70%, 06/15/2035		164		191
					6.40%, 12/15/2066(a)		288		316
Home Furnishings - 0.00%					7.72%, 02/15/2019		225		268
Whirlpool Corp					PartnerRe Finance B LLC
4.85%, 06/15/2021		77		85	5.50%, 06/01/2020		115		128
					Progressive Corp/The
					3.75%, 08/23/2021		277		296
Housewares - 0.02%					4.35%, 04/25/2044		200		199
Newell Rubbermaid Inc					Protective Life Corp
2.88%, 12/01/2019		400		404	8.45%, 10/15/2039		51		71
					Prudential Financial Inc
Insurance - 0.87%					3.50%, 05/15/2024		1,200		1,186
ACE INA Holdings Inc					4.50%, 11/16/2021		128		139
6.70%, 05/15/2036		250		331	5.70%, 12/14/2036		25		28
Aflac Inc					5.80%, 11/16/2041		51		57
3.63%, 11/15/2024		200		201	5.88%, 09/15/2042(a)		100		106
6.45%, 08/15/2040		132		161	6.00%, 12/01/2017		577		637
Allstate Corp/The					6.63%, 12/01/2037		126		152
4.50%, 06/15/2043		750		757	7.38%, 06/15/2019		350		415
5.55%, 05/09/2035		200		236	Reinsurance Group of America Inc
American International Group Inc					4.70%, 09/15/2023		200		212
4.88%, 06/01/2022		250		274	Travelers Cos Inc/The
5.60%, 10/18/2016		577		609	5.90%, 06/02/2019		350		400
5.85%, 01/16/2018		154		170	6.25%, 06/15/2037		12		15
6.25%, 05/01/2036		500		593	6.75%, 06/20/2036		51		68
6.40%, 12/15/2020		89		106	Unum Group
6.82%, 11/15/2037		250		310	7.13%, 09/30/2016		77		82
Aon Corp					Validus Holdings Ltd
5.00%, 09/30/2020		128		141	8.88%, 01/26/2040		51		65
Aon PLC					Voya Financial Inc
4.45%, 05/24/2043		300		279	5.50%, 07/15/2022		350		393
Arch Capital Group US Inc					WR Berkley Corp
5.14%, 11/01/2043		375		383	6.25%, 02/15/2037		29		34
AXA SA					XLIT Ltd
8.60%, 12/15/2030		38		51	2.30%, 12/15/2018		350		352
Berkshire Hathaway Finance Corp					5.25%, 12/15/2043		400		413
1.30%, 05/15/2018		300		300			$		16,497
2.00%, 08/15/2018		500		507
					Internet - 0.16%
4.25%, 01/15/2021		102		111	Alibaba Group Holding Ltd
4.30%, 05/15/2043		300		290	3.60%, 11/28/2024(b)		750		723
5.75%, 01/15/2040		115		134	Amazon.com Inc
Berkshire Hathaway Inc					1.20%, 11/29/2017		100		99
1.90%, 01/31/2017		128		130
3.40%, 01/31/2022		205		214	2.50%, 11/29/2022		100		95
					2.60%, 12/05/2019		250		252
Chubb Corp/The					4.95%, 12/05/2044		500		487
6.50%, 05/15/2038		10		13
CNA Financial Corp					Baidu Inc
					3.25%, 08/06/2018		500		515
5.75%, 08/15/2021		77		87	eBay Inc
Fidelity National Financial Inc
6.60%, 05/15/2017		51		55	2.60%, 07/15/2022		100		93
					4.00%, 07/15/2042		100		81
Hartford Financial Services Group Inc/The					Expedia Inc
4.30%, 04/15/2043		250		237
5.38%, 03/15/2017		177		188	7.46%, 08/15/2018		128		147
					Google Inc
6.63%, 03/30/2040		25		31	3.38%, 02/25/2024		500		513
Lincoln National Corp
4.00%, 09/01/2023		1,000		1,028	3.63%, 05/19/2021		51		55
6.15%, 04/07/2036		80		93			$		3,060
7.00%, 06/15/2040		47		59	Investment Companies - 0.01%
8.75%, 07/01/2019		141		173	Prospect Capital Corp
Loews Corp					5.00%, 07/15/2019		250		258
2.63%, 05/15/2023		200		191
4.13%, 05/15/2043		200		182

See accompanying notes.

110

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
			Principal						Principal
	BONDS (continued)		Amount (000's)    Value (000's)				BONDS (continued)		Amount (000's)    Value (000's)
	Iron & Steel - 0.12%						Media (continued)
	Nucor Corp						DIRECTV Holdings LLC / DIRECTV
	5.75%, 12/01/2017		$	12	$	13	Financing Co Inc (continued)
	Vale Overseas Ltd						2.40%, 03/15/2017	$	200	$	203
	5.63%, 09/15/2019			546		591	3.80%, 03/15/2022		102		103
	6.25%, 01/23/2017			351		371	4.60%, 02/15/2021		171		182
	6.88%, 11/21/2036			1,367		1,322	5.88%, 10/01/2019		56		63
	8.25%, 01/17/2034			38		42	6.00%, 08/15/2040		663		688
				$		2,339	Discovery Communications LLC
							3.25%, 04/01/2023		200		193
	Lodging - 0.04%						5.05%, 06/01/2020		51		56
	Marriott International Inc/MD						5.63%, 08/15/2019		51		57
	3.13%, 10/15/2021			500		499	6.35%, 06/01/2040		43		47
	Wyndham Worldwide Corp						Grupo Televisa SAB
	3.90%, 03/01/2023			300		294	6.00%, 05/15/2018		500		553
				$		793	6.63%, 03/18/2025		200		241
	Machinery - Construction & Mining - 0.10%						Historic TW Inc
	Caterpillar Financial Services Corp						6.88%, 06/15/2018		25		29
	1.25%, 08/18/2017			500		501	NBCUniversal Media LLC
	1.63%, 06/01/2017			150		151	4.38%, 04/01/2021		151		164
	2.45%, 09/06/2018			200		204	5.15%, 04/30/2020		75		84
	7.05%, 10/01/2018			200		233	5.95%, 04/01/2041		100		117
	7.15%, 02/15/2019			113		133	6.40%, 04/30/2040		251		312
	Caterpillar Inc						RELX Capital Inc
	3.80%, 08/15/2042			105		97	3.13%, 10/15/2022		125		122
	4.75%, 05/15/2064			350		343	Thomson Reuters Corp
	6.05%, 08/15/2036			132		161	3.95%, 09/30/2021		175		183
				$		1,823	4.50%, 05/23/2043		300		272
							5.85%, 04/15/2040		25		27
	Machinery - Diversified - 0.17%						Time Warner Cable Inc
	Deere & Co						4.00%, 09/01/2021		180		185
	4.38%, 10/16/2019			56		61	5.50%, 09/01/2041		300		280
	John Deere Capital Corp						5.85%, 05/01/2017		51		54
	1.20%, 10/10/2017			200		200	6.55%, 05/01/2037		151		157
	1.30%, 03/12/2018			1,025		1,023	6.75%, 07/01/2018		51		57
	1.40%, 03/15/2017			180		182	6.75%, 06/15/2039		77		82
	3.90%, 07/12/2021			1,000		1,077	7.30%, 07/01/2038		300		338
	Rockwell Automation Inc						8.25%, 04/01/2019		154		181
	2.05%, 03/01/2020			250		248	8.75%, 02/14/2019		48		57
	6.25%, 12/01/2037			51		65	Time Warner Entertainment Co LP
	Roper Technologies Inc						8.38%, 07/15/2033		95		117
	1.85%, 11/15/2017			300		302	Time Warner Inc
				$		3,158	4.00%, 01/15/2022		180		184
							4.05%, 12/15/2023		500		513
	Media - 0.89	%
	21st Century Fox America Inc						4.65%, 06/01/2044		500		475
	4.50%, 02/15/2021			200		217	4.70%, 01/15/2021		81		88
	5.65%, 08/15/2020			51		58	4.88%, 03/15/2020		42		46
	6.15%, 02/15/2041			577		670	5.38%, 10/15/2041		128		131
	6.20%, 12/15/2034			154		179	6.10%, 07/15/2040		43		48
	6.40%, 12/15/2035			128		151	6.20%, 03/15/2040		51		58
	6.90%, 03/01/2019			154		179	6.50%, 11/15/2036		120		141
	CBS Corp						7.63%, 04/15/2031		445		579
	1.95%, 07/01/2017			200		202	Viacom Inc
	4.85%, 07/01/2042			200		184	2.50%, 12/15/2016		102		104
	5.75%, 04/15/2020			65		73	3.25%, 03/15/2023		750		713
	7.88%, 07/30/2030			178		231	3.88%, 12/15/2021		128		130
	Comcast Corp						4.38%, 03/15/2043		100		81
	2.85%, 01/15/2023			100		97	6.88%, 04/30/2036		166		185
	3.38%, 08/15/2025			500		493	Walt Disney Co/The
	4.20%, 08/15/2034			750		723	1.10%, 12/01/2017		100		100
	4.25%, 01/15/2033			100		98	1.35%, 08/16/2016		51		51
	4.60%, 08/15/2045			250		248	2.35%, 12/01/2022		750		726
	4.65%, 07/15/2042			100		100	2.75%, 08/16/2021		102		104
	5.15%, 03/01/2020			774		871	3.70%, 12/01/2042		100		92
	6.30%, 11/15/2017			128		142	3.75%, 06/01/2021		200		214
	6.40%, 03/01/2040			500		620	7.00%, 03/01/2032		51		70
	6.45%, 03/15/2037			60		74			$		16,986
	6.95%, 08/15/2037			274		356	Metal Fabrication & Hardware - 0.05%
	7.05%, 03/15/2033			300		385	Precision Castparts Corp
	DIRECTV Holdings LLC / DIRECTV						1.25%, 01/15/2018		200		199
	Financing Co Inc						2.50%, 01/15/2023		100		96
	1.75%, 01/15/2018			600		598	3.90%, 01/15/2043		175		162

See accompanying notes.

111

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)		Value (000's)	BONDS (continued)		Amount (000's)    Value (000's)
Metal Fabrication & Hardware (continued)					Miscellaneous Manufacturing (continued)
Precision Castparts Corp	(continued)				Ingersoll-Rand Global Holding Co Ltd
4.38%, 06/15/2045	$	500	$	496	6.88%, 08/15/2018	$	490	$	557
		$		953	Parker-Hannifin Corp
					3.50%, 09/15/2022		577		597
Mining - 0.46%					Tyco Electronics Group SA
Barrick Gold Corp					6.55%, 10/01/2017		112		124
4.10%, 05/01/2023		150		146	7.13%, 10/01/2037		14		18
6.95%, 04/01/2019		200		232			$		4,077
Barrick North America Finance LLC
4.40%, 05/30/2021		1,000		1,021	Mortgage Backed Securities - 2.16%
Barrick PD Australia Finance Pty Ltd					Banc of America Commercial Mortgage Trust
4.95%, 01/15/2020		60		64	2006-3
5.95%, 10/15/2039		90		86	5.89%, 07/10/2044		14		15
BHP Billiton Finance USA Ltd					Banc of America Commercial Mortgage Trust
1.63%, 02/24/2017		128		129	2006-5
3.25%, 11/21/2021		128		130	5.41%, 09/10/2047(a)		514		529
4.13%, 02/24/2042		328		302	Banc of America Commercial Mortgage Trust
5.00%, 09/30/2043		500		519	2007-2
6.50%, 04/01/2019		23		27	5.63%, 04/10/2049		4		4
Freeport-McMoRan Inc					Banc of America Commercial Mortgage Trust
3.55%, 03/01/2022		302		280	2008-1
3.88%, 03/15/2023		1,000		908	6.43%, 02/10/2051(a)		33		36
5.40%, 11/14/2034		300		259	Banc of America Merrill Lynch Commercial
Goldcorp Inc					Mortgage Inc
3.63%, 06/09/2021		300		298	5.33%, 09/10/2047(a)		94		94
Newmont Mining Corp					Bear Stearns Commercial Mortgage Securities
3.50%, 03/15/2022		102		97	Trust 2005-PWR10
5.13%, 10/01/2019		801		870	5.41%, 12/11/2040		74		75
6.25%, 10/01/2039		118		116	Bear Stearns Commercial Mortgage Securities
Placer Dome Inc					Trust 2006-PWR12
6.45%, 10/15/2035		150		150	5.90%, 09/11/2038(a)		76		78
Rio Tinto Alcan Inc					Bear Stearns Commercial Mortgage Securities
6.13%, 12/15/2033		77		87	Trust 2006-PWR13
Rio Tinto Finance USA Ltd					5.54%, 09/11/2041		116		120
2.25%, 09/20/2016		200		203	Bear Stearns Commercial Mortgage Securities
3.75%, 09/20/2021		128		133	Trust 2006-PWR14
6.50%, 07/15/2018		203		230	5.20%, 12/11/2038		500		522
7.13%, 07/15/2028		512		649	Bear Stearns Commercial Mortgage Securities
9.00%, 05/01/2019		83		104	Trust 2006-TOP24
Rio Tinto Finance USA PLC					5.54%, 10/12/2041		176		182
4.75%, 03/22/2042		328		320	CD 2006-CD3 Mortgage Trust
Southern Copper Corp					5.62%, 10/15/2048		60		62
5.38%, 04/16/2020		25		27	Citigroup Commercial Mortgage Trust 2013-
5.88%, 04/23/2045		350		333	GC11
6.75%, 04/16/2040		258		266	0.75%, 04/10/2046		262		260
Teck Resources Ltd					Citigroup Commercial Mortgage Trust 2013-
2.50%, 02/01/2018		300		293	GC15
3.00%, 03/01/2019		102		98	4.37%, 09/10/2046		1,000		1,090
4.50%, 01/15/2021		200		192	COMM 2007-C9 Mortgage Trust
6.25%, 07/15/2041		154		124	5.99%, 12/10/2049(a)		629		674
		$		8,693	COMM 2012-CCRE5 Mortgage Trust
					1.68%, 12/10/2045		531		533
Miscellaneous Manufacturing - 0.21%					COMM 2013-CCRE8 Mortgage Trust
3M Co					3.61%, 06/10/2046		500		521
1.38%, 09/29/2016		128		129	COMM 2013-LC6 Mortgage Trust
5.70%, 03/15/2037		38		46	2.94%, 01/10/2046		500		500
Crane Co					COMM 2014-LC15 Mortgage Trust
4.45%, 12/15/2023		100		104	2.84%, 04/10/2047		1,000		1,027
Dover Corp					COMM 2014-UBS3 Mortgage Trust
5.38%, 03/01/2041		77		87	3.82%, 06/10/2047		500		521
Eaton Corp					COMM 2015-LC19 Mortgage Trust
1.50%, 11/02/2017		400		400	3.18%, 02/10/2048(a)		1,000		990
2.75%, 11/02/2022		100		97	Commercial Mortgage Loan Trust 2008-LS1
4.00%, 11/02/2032		100		97	6.24%, 12/10/2049(a)		81		86
4.15%, 11/02/2042		50		46	Commercial Mortgage Pass Through
General Electric Co					Certificates
2.70%, 10/09/2022		300		293	2.82%, 10/15/2045(a)		500		498
4.13%, 10/09/2042		300		289	3.15%, 02/10/2047		500		521
4.50%, 03/11/2044		500		508	Commercial Mortgage Trust 2007-GG11
5.25%, 12/06/2017		300		327	5.74%, 12/10/2049		386		409
Illinois Tool Works Inc					Commercial Mortgage Trust 2007-GG9
3.50%, 03/01/2024		350		358	5.44%, 03/10/2039(a)		197		207

See accompanying notes.

112

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
			Principal						Principal
	BONDS (continued)		Amount (000's)                 Value (000's)			BONDS (continued)			Amount (000's)         Value (000's)
	Mortgage Backed Securities (continued)					Mortgage Backed Securities (continued)
	Credit Suisse Commercial Mortgage Trust					LB-UBS Commercial Mortgage Trust 2007-
	Series 2006-C4					C6
	5.47%, 09/15/2039	$	407	$	420	5.86%, 07/15/2040(a)		$	40	$	42
	Fannie Mae-Aces					Merrill Lynch Mortgage Trust 2006-C2
	2.53%, 09/25/2024		500		486	5.74%, 08/12/2043			683		705
	2.59%, 04/25/2023(a)		862		860	Merrill Lynch Mortgage Trust 2007-C1
	2.72%, 02/25/2022		1,000		1,018	6.03%, 06/12/2050(a)			77		82
	3.22%, 08/25/2024(a)		995		1,021	ML-CFC Commercial Mortgage Trust 2006-
	3.46%, 01/25/2024(a)		700		731	2
	FHLMC Multifamily Structured Pass Through					6.06%, 06/12/2046(a)			462		473
	Certificates					ML-CFC Commercial Mortgage Trust 2006-
	2.08%, 12/25/2019(a)		527		535	4
	2.87%, 12/25/2021		540		555	5.17%, 12/12/2049			437		455
	3.02%, 02/25/2023(a)		408		426	Morgan Stanley Bank of America Merrill
	3.06%, 07/25/2023(a)		750		769	Lynch Trust 2013-C11
	3.06%, 12/25/2024		500		505	3.09%, 08/15/2046(a)			225		233
	3.31%, 05/25/2023(a)		810		846	Morgan Stanley Capital I Trust 2006-HQ8
	3.32%, 02/25/2023(a)		1,000		1,048	5.60%, 03/12/2044(a)			228		229
	3.87%, 04/25/2021(a)		1,350		1,464	Morgan Stanley Capital I Trust 2006-TOP23
	4.19%, 12/25/2020(a)		850		934	6.01%, 08/12/2041(a)			448		462
	GE Capital Commercial Mortgage Corp					Morgan Stanley Capital I Trust 2007-HQ12
	5.50%, 11/10/2045(a)		26		26	5.86%, 04/12/2049(a)			135		135
	GMAC Commercial Mortgage Securities Inc					5.86%, 04/12/2049(a)			278		278
	Series 2006-C1 Trust					Morgan Stanley Capital I Trust 2007-IQ13
	5.24%, 11/10/2045		535		538	5.36%, 03/15/2044(a)			100		105
	GS Mortgage Securities Corp II					Morgan Stanley Capital I Trust 2007-IQ16
	2.77%, 11/10/2045		500		496	5.81%, 12/12/2049			478		513
	GS Mortgage Securities Trust 2007-GG10					Morgan Stanley Capital I Trust 2007-TOP25
	5.99%, 08/10/2045(a)		462		493	5.51%, 11/12/2049			1,228		1,287
	GS Mortgage Securities Trust 2012-GC6					UBS Commercial Mortgage Trust 2012-C1
	3.48%, 01/10/2045		274		286	3.40%, 05/10/2045(a)			500		517
	GS Mortgage Securities Trust 2014-GC18					UBS-Barclays Commercial Mortgage Trust
	3.80%, 01/10/2047(a)		500		523	2012	-C2
	JP Morgan Chase Commercial Mortgage					2.11%, 05/10/2063			500		507
	Securities Trust 2005-LDP5					UBS-Barclays Commercial Mortgage Trust
	5.45%, 12/15/2044(a)		700		710	2012	-C3
	JP Morgan Chase Commercial Mortgage					3.09%, 08/10/2049(a)			550		554
	Securities Trust 2006-CIBC17					UBS-Barclays Commercial Mortgage Trust
	5.43%, 12/12/2043		291		302	2013	-C6
	JP Morgan Chase Commercial Mortgage					3.24%, 04/10/2046(a)			500		506
	Securities Trust 2006-LDP7					Wachovia Bank Commercial Mortgage Trust
	6.10%, 04/15/2045(a)		257		267	Series 2005-C22
	JP Morgan Chase Commercial Mortgage					5.45%, 12/15/2044(a)			80		80
	Securities Trust 2006-LDP8					Wachovia Bank Commercial Mortgage Trust
	5.44%, 05/15/2045(a)		17		17	Series 2006-C23
	JP Morgan Chase Commercial Mortgage					5.42%, 01/15/2045			193		195
	Securities Trust 2006-LDP9					Wachovia Bank Commercial Mortgage Trust
	5.34%, 05/15/2047		328		342	Series 2006-C27
	JP Morgan Chase Commercial Mortgage					5.80%, 07/15/2045			287		299
	Securities Trust 2007-LDP10					Wachovia Bank Commercial Mortgage Trust
	5.42%, 01/15/2049		517		541	Series 2007-C34
	JP Morgan Chase Commercial Mortgage					5.68%, 05/15/2046(a)			90		96
	Securities Trust 2007-LDP12					Wells Fargo Commercial Mortgage Trust
	5.88%, 02/15/2051		1,000		1,063	2012	-LC5
	JP Morgan Chase Commercial Mortgage					2.92%, 10/15/2045			500		503
	Securities Trust 2011-C5					WFRBS Commercial Mortgage Trust 2012-
	4.17%, 08/15/2046		257		279	C7
	JPMBB Commercial Mortgage Securities					2.30%, 06/15/2045			319		321
	Trust 2013-C15					WFRBS Commercial Mortgage Trust 2013-
	4.13%, 11/15/2045(a)		500		535	C11
	JPMBB Commercial Mortgage Securities					2.03%, 03/15/2045(a)			500		505
	Trust 2014-C22					WFRBS Commercial Mortgage Trust 2013-
	3.80%, 09/15/2047		1,000		1,036	C14
	LB Commercial Mortgage Trust 2007-C3					2.98%, 06/15/2046			1,000		1,025
	6.10%, 07/15/2044(a)		62		66	WFRBS Commercial Mortgage Trust 2014-
	LB-UBS Commercial Mortgage Trust 2006-					C20
	C3					3.04%, 05/15/2047(a)			500		519
	5.66%, 03/15/2039		104		106	WFRBS Commercial Mortgage Trust 2014-
	LB-UBS Commercial Mortgage Trust 2007-					LC14
	C2					1.19%, 03/15/2047			395		393
	5.43%, 02/15/2040		1,060		1,119				$		40,936

See accompanying notes.

113

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal				Principal
BONDS (continued)		Amount (000's)      Value (000's)			BONDS (continued)	Amount (000's)    Value (000's)
Office & Business Equipment - 0.08%					Oil & Gas (continued)
Pitney Bowes Inc					Devon Financing Corp LLC
5.75%, 09/15/2017	$	27	$	29	7.88%, 09/30/2031	$	128	$	165
Xerox Corp					Ecopetrol SA
2.75%, 09/01/2020		500		495	4.13%, 01/16/2025		500		461
2.80%, 05/15/2020		500		498	4.25%, 09/18/2018		250		260
2.95%, 03/15/2017		154		158	5.88%, 09/18/2023		250		263
4.50%, 05/15/2021		226		240	Encana Corp
5.63%, 12/15/2019		21		24	3.90%, 11/15/2021		200		204
		$		1,444	6.50%, 02/01/2038		166		177
					Ensco PLC
Oil & Gas - 2.11%					4.70%, 03/15/2021		200		204
Alberta Energy Co Ltd					5.20%, 03/15/2025		300		297
7.38%, 11/01/2031		77		90	EOG Resources Inc
Anadarko Finance Co					2.63%, 03/15/2023		200		192
7.50%, 05/01/2031		77		96	4.40%, 06/01/2020		51		56
Anadarko Petroleum Corp					EQT Corp
4.50%, 07/15/2044		500		460	6.50%, 04/01/2018		127		139
5.95%, 09/15/2016		178		188	Exxon Mobil Corp
6.20%, 03/15/2040		25		28	1.31%, 03/06/2018		570		570
6.38%, 09/15/2017		206		226	3.18%, 03/15/2024		500		507
6.45%, 09/15/2036		225		260	3.57%, 03/06/2045		300		272
Apache Corp					Hess Corp
3.63%, 02/01/2021		577		595	5.60%, 02/15/2041		51		52
4.75%, 04/15/2043		128		118	7.13%, 03/15/2033		200		229
5.10%, 09/01/2040		92		89	7.30%, 08/15/2031		38		44
Apache Finance Canada Corp					8.13%, 02/15/2019		25		30
7.75%, 12/15/2029		750		1,018	Husky Energy Inc
BP Capital Markets PLC					7.25%, 12/15/2019		550		642
1.85%, 05/05/2017		200		202	Marathon Oil Corp
2.24%, 09/26/2018		1,000		1,015	3.85%, 06/01/2025		500		490
2.32%, 02/13/2020		200		199	5.90%, 03/15/2018		251		276
2.50%, 11/06/2022		200		190	6.60%, 10/01/2037		223		252
3.06%, 03/17/2022		300		299	Marathon Petroleum Corp
3.56%, 11/01/2021		200		208	3.63%, 09/15/2024		400		393
3.81%, 02/10/2024		400		407	5.13%, 03/01/2021		77		85
4.74%, 03/11/2021		128		141	Nabors Industries Inc
4.75%, 03/10/2019		25		27	2.35%, 09/15/2016		300		301
Canadian Natural Resources Ltd					Nexen Energy ULC
5.70%, 05/15/2017		516		555	5.88%, 03/10/2035		500		552
6.25%, 03/15/2038		164		182	6.40%, 05/15/2037		157		188
Cenovus Energy Inc					7.50%, 07/30/2039		15		20
5.70%, 10/15/2019		152		170	Noble Energy Inc
6.75%, 11/15/2039		128		145	5.25%, 11/15/2043		350		341
Chevron Corp					6.00%, 03/01/2041		102		108
2.36%, 12/05/2022		300		287	8.25%, 03/01/2019		400		477
2.43%, 06/24/2020		450		454	Noble Holding International Ltd
4.95%, 03/03/2019		400		442	2.50%, 03/15/2017		128		128
CNOOC Finance 2013 Ltd					5.95%, 04/01/2025		300		296
1.75%, 05/09/2018		150		149	6.05%, 03/01/2041		300		249
3.00%, 05/09/2023		150		142	6.20%, 08/01/2040		25		21
4.25%, 05/09/2043		100		94	Occidental Petroleum Corp
CNOOC Nexen Finance 2014 ULC					2.70%, 02/15/2023		300		290
4.25%, 04/30/2024		500		511	3.50%, 06/15/2025		500		498
Conoco Funding Co					Petrobras Global Finance BV
7.25%, 10/15/2031		200		260	3.00%, 01/15/2019		700		647
ConocoPhillips					3.25%, 03/17/2017		250		247
6.00%, 01/15/2020		293		339	4.38%, 05/20/2023		950		828
6.50%, 02/01/2039		169		210	4.88%, 03/17/2020		250		238
ConocoPhillips Canada Funding Co I					5.38%, 01/27/2021		205		197
5.63%, 10/15/2016		77		81	5.63%, 05/20/2043		200		155
ConocoPhillips Co					5.75%, 01/20/2020		738		731
3.35%, 05/15/2025		750		742	5.88%, 03/01/2018		77		79
4.30%, 11/15/2044		400		382	6.75%, 01/27/2041		177		155
ConocoPhillips Holding Co					6.88%, 01/20/2040		25		22
6.95%, 04/15/2029		202		258	7.88%, 03/15/2019		116		123
Continental Resources Inc/OK					Petro-Canada
4.90%, 06/01/2044		250		211	6.80%, 05/15/2038		12		15
5.00%, 09/15/2022		500		490	7.88%, 06/15/2026		200		268
Devon Energy Corp					Petroleos Mexicanos
5.60%, 07/15/2041		125		131	3.50%, 07/18/2018		400		412
6.30%, 01/15/2019		154		174	3.50%, 07/23/2020(b)		350		354
7.95%, 04/15/2032		192		250

See accompanying notes.

114

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)     Value (000's)			BONDS (continued)		Amount (000's)  Value (000's)
Oil & Gas (continued)					Oil & Gas Services (continued)
Petroleos Mexicanos (continued)					Halliburton Co (continued)
4.50%, 01/23/2026(b)	$	1,000	$	977	3.25%, 11/15/2021	$	651	$	668
4.88%, 01/24/2022		385		400	4.50%, 11/15/2041		51		51
5.50%, 01/21/2021		208		226	5.90%, 09/15/2018		350		392
5.50%, 06/27/2044(b)		500		460	7.45%, 09/15/2039		10		14
5.50%, 06/27/2044		350		322	Weatherford International Ltd/Bermuda
5.75%, 03/01/2018		141		153	5.13%, 09/15/2020		51		52
6.38%, 01/23/2045		400		411	6.00%, 03/15/2018		12		13
6.63%, 06/15/2035		286		305	6.75%, 09/15/2040		51		47
8.00%, 05/03/2019		31		36	7.00%, 03/15/2038		400		382
Phillips 66					9.63%, 03/01/2019		164		191
2.95%, 05/01/2017		128		132			$		2,996
4.30%, 04/01/2022		628		659
5.88%, 05/01/2042		128		139	Other Asset Backed Securities - 0.01%
Pioneer Natural Resources Co					CenterPoint Energy Restoration Bond Co
3.95%, 07/15/2022		100		101	LLC
Pride International Inc					3.46%, 08/15/2019		100		103
6.88%, 08/15/2020		77		88
Rowan Cos Inc					Packaging & Containers - 0.01%
5.00%, 09/01/2017		23		24	MeadWestvaco Corp
Shell International Finance BV					7.38%, 09/01/2019		100		117
0.90%, 11/15/2016		200		200
1.13%, 08/21/2017		200		200
2.38%, 08/21/2022		100		97	Pharmaceuticals - 1.24%
3.40%, 08/12/2023		1,500		1,539	Abbott Laboratories
3.63%, 08/21/2042		100		87	5.30%, 05/27/2040		200		223
4.13%, 05/11/2035		410		401	AbbVie Inc
4.30%, 09/22/2019		651		710	1.75%, 11/06/2017		300		301
4.38%, 03/25/2020		25		27	2.00%, 11/06/2018		200		200
4.38%, 05/11/2045		490		484	2.50%, 05/14/2020		580		574
5.50%, 03/25/2040		25		28	2.90%, 11/06/2022		200		194
6.38%, 12/15/2038		43		54	3.60%, 05/14/2025		470		465
Southwestern Energy Co					4.40%, 11/06/2042		200		189
4.05%, 01/23/2020		300		308	4.50%, 05/14/2035		280		274
4.10%, 03/15/2022		150		147	4.70%, 05/14/2045		330		325
Statoil ASA					Actavis Funding SCS
1.15%, 05/15/2018		400		397	1.30%, 06/15/2017		300		298
2.25%, 11/08/2019		500		502	1.85%, 03/01/2017		400		402
2.65%, 01/15/2024		400		383	3.00%, 03/12/2020		400		401
3.15%, 01/23/2022		102		103	3.80%, 03/15/2025		300		295
3.95%, 05/15/2043		200		186	4.75%, 03/15/2045		200		190
5.10%, 08/17/2040		263		284	4.85%, 06/15/2044		500		482
5.25%, 04/15/2019		23		26	Actavis Inc
Suncor Energy Inc					1.88%, 10/01/2017		200		200
6.10%, 06/01/2018		128		143	3.25%, 10/01/2022		150		145
6.50%, 06/15/2038		428		521	4.63%, 10/01/2042		100		93
6.85%, 06/01/2039		5		6	6.13%, 08/15/2019		12		14
TalismanEnergyInc					AmerisourceBergen Corp
6.25%, 02/01/2038		248		243	3.40%, 05/15/2024		250		249
Total Capital International SA					AstraZeneca PLC
1.00%, 01/10/2017		200		200	1.95%, 09/18/2019		1,100		1,094
2.75%, 06/19/2021		400		404	4.00%, 09/18/2042		100		94
2.88%, 02/17/2022		128		128	5.90%, 09/15/2017		77		85
Total Capital SA					6.45%, 09/15/2037		144		183
4.25%, 12/15/2021		51		56	Baxalta Inc
					2.00%, 06/22/2018(b)		500		499
4.45%, 06/24/2020		500		549	3.60%, 06/23/2022(b)		500		500
Valero Energy Corp
6.13%, 02/01/2020		138		158	Bristol-Myers Squibb Co
6.63%, 06/15/2037		234		264	0.88%, 08/01/2017		100		100
7.50%, 04/15/2032		15		18	1.75%, 03/01/2019		1,000		997
9.38%, 03/15/2019		128		158	3.25%, 08/01/2042		100		84
		$		40,159	Cardinal Health Inc
					1.70%, 03/15/2018		300		299
Oil & Gas Services - 0.16%					3.20%, 03/15/2023		200		198
Baker Hughes Inc					4.60%, 03/15/2043		100		96
5.13%, 09/15/2040		281		303	Eli Lilly & Co
7.50%, 11/15/2018		12		14	1.95%, 03/15/2019		1,000		1,001
Cameron International Corp					5.20%, 03/15/2017		164		175
1.15%, 12/15/2016		400		398	Express Scripts Holding Co
6.38%, 07/15/2018		154		171	3.13%, 05/15/2016		128		130
Halliburton Co					3.50%, 06/15/2024		500		489
1.00%, 08/01/2016		300		300	3.90%, 02/15/2022		200		205

See accompanying notes.

115

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
			Principal					Principal
BONDS (continued)			Amount (000's)     Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Pharmaceuticals (continued)						Pipelines (continued)
Express Scripts Holding Co	(continued)					Columbia Pipeline Group Inc
4.75%, 11/15/2021		$	77	$	84	5.80%, 06/01/2045(b)	$	500	$	493
6.13%, 11/15/2041			77		89	Enable Midstream Partners LP
GlaxoSmithKline Capital Inc						5.00%, 05/15/2044(b)		500		417
5.38%, 04/15/2034			1,000		1,140	Enbridge Energy Partners LP
5.65%, 05/15/2018			202		225	5.20%, 03/15/2020		9		10
GlaxoSmithKline Capital PLC						9.88%, 03/01/2019		87		108
1.50%, 05/08/2017			100		101	Energy Transfer Partners LP
2.85%, 05/08/2022			128		127	4.90%, 02/01/2024		350		356
Johnson & Johnson						4.90%, 03/15/2035		300		271
0.70%, 11/28/2016			215		215	5.20%, 02/01/2022		102		107
1.65%, 12/05/2018			500		504	5.95%, 10/01/2043		350		343
2.95%, 09/01/2020			128		134	6.50%, 02/01/2042		102		105
3.38%, 12/05/2023			500		519	6.70%, 07/01/2018		23		26
4.95%, 05/15/2033			201		230	9.00%, 04/15/2019		6		7
5.55%, 08/15/2017			128		140	Enterprise Products Operating LLC
McKesson Corp						3.35%, 03/15/2023		300		293
4.75%, 03/01/2021			250		274	3.70%, 02/15/2026		500		484
Mead Johnson Nutrition Co						3.75%, 02/15/2025		500		490
4.60%, 06/01/2044			250		238	3.90%, 02/15/2024		250		251
Medco Health Solutions Inc						4.85%, 08/15/2042		300		285
7.13%, 03/15/2018			169		192	5.20%, 09/01/2020		77		86
Merck & Co Inc						6.13%, 10/15/2039		123		135
0.70%, 05/18/2016			200		200	6.45%, 09/01/2040		177		200
1.10%, 01/31/2018			100		100	6.50%, 01/31/2019		161		184
1.30%, 05/18/2018			200		199	6.88%, 03/01/2033		15		18
2.40%, 09/15/2022			100		96	Kinder Morgan Energy Partners LP
2.75%, 02/10/2025			350		336	3.50%, 03/01/2021		750		739
2.80%, 05/18/2023			200		197	3.50%, 09/01/2023		200		186
3.60%, 09/15/2042			100		89	4.15%, 03/01/2022		300		300
4.15%, 05/18/2043			200		194	4.70%, 11/01/2042		200		167
6.55%, 09/15/2037			187		244	5.00%, 03/01/2043		100		87
Merck Sharp & Dohme Corp						5.40%, 09/01/2044		400		363
5.00%, 06/30/2019			154		171	6.38%, 03/01/2041		128		129
Mylan Inc						6.50%, 09/01/2039		112		115
1.35%, 11/29/2016			250		249	6.95%, 01/15/2038		112		120
2.55%, 03/28/2019			250		248	7.40%, 03/15/2031		177		196
Novartis Capital Corp						9.00%, 02/01/2019		77		93
4.40%, 04/24/2020			77		85	Kinder Morgan Inc/DE
4.40%, 05/06/2044			330		340	3.05%, 12/01/2019		750		749
Novartis Securities Investment Ltd						Magellan Midstream Partners LP
5.13%, 02/10/2019			564		627	4.20%, 12/01/2042		200		176
Perrigo Co PLC						ONEOK Partners LP
5.30%, 11/15/2043			500		517	5.00%, 09/15/2023		250		253
Pfizer Inc						6.13%, 02/01/2041		128		125
1.10%, 05/15/2017			500		501	8.63%, 03/01/2019		20		24
3.00%, 06/15/2023			500		498	Panhandle Eastern Pipe Line Co LP
3.40%, 05/15/2024			1,000		1,008	6.20%, 11/01/2017		81		89
4.65%, 03/01/2018			51		56	Plains All American Pipeline LP / PAA
6.20%, 03/15/2019			280		320	Finance Corp
7.20%, 03/15/2039			151		208	2.85%, 01/31/2023		200		188
Sanofi						3.65%, 06/01/2022		128		129
1.25%, 04/10/2018			400		399	4.30%, 01/31/2043		200		170
Teva Pharmaceutical Finance Co BV						4.70%, 06/15/2044		500		457
3.65%, 11/10/2021			400		408	5.75%, 01/15/2020		15		17
Teva Pharmaceutical Finance Co LLC						Regency Energy Partners LP / Regency
6.15%, 02/01/2036			3		4	Energy Finance Corp
Wyeth LLC						5.88%, 03/01/2022		750		798
5.95%, 04/01/2037			91		109	Southern Natural Gas Co LLC
6.50%, 02/01/2034			144		182	5.90%, 04/01/2017(a),(b)		12		13
Zoetis Inc						Southern Natural Gas Co LLC / Southern
3.25%, 02/01/2023			100		97	Natural Issuing Corp
			$		23,637	4.40%, 06/15/2021		51		53
						Spectra Energy Capital LLC
Pipelines - 0.96%						8.00%, 10/01/2019		300		355
ANR Pipeline Co						Spectra Energy Partners LP
9.63%, 11/01/2021			600		791	5.95%, 09/25/2043		200		218
Boardwalk Pipelines LP						Sunoco Logistics Partners Operations LP
3.38%, 02/01/2023			200		181	3.45%, 01/15/2023		200		189
Buckeye Partners LP						4.95%, 01/15/2043		200		175
2.65%, 11/15/2018			250		249	5.50%, 02/15/2020		46		51
4.88%, 02/01/2021			850		886

See accompanying notes.

116

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)             Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
	Pipelines (continued)						REITS (continued)
	Tennessee Gas Pipeline Co LLC						Boston Properties LP (continued)
	7.50%, 04/01/2017		$	77	$	84	5.63%, 11/15/2020	$	25	$	29
	Texas Eastern Transmission LP						5.88%, 10/15/2019		750		852
	7.00%, 07/15/2032			100		124	Brandywine Operating Partnership LP
	TransCanada PipeLines Ltd						3.95%, 02/15/2023		200		198
	3.80%, 10/01/2020			128		136	CBL & Associates LP
	5.60%, 03/31/2034			300		325	4.60%, 10/15/2024		750		738
	6.10%, 06/01/2040			25		28	DDR Corp
	6.35%, 05/15/2067(a)			500		475	4.63%, 07/15/2022		200		210
	6.50%, 08/15/2018			1,042		1,183	Duke Realty LP
	7.25%, 08/15/2038			51		65	3.88%, 10/15/2022		100		101
	Williams Cos Inc/The						EPR Properties
	4.55%, 06/24/2024			1,000		969	7.75%, 07/15/2020		63		75
	7.50%, 01/15/2031			11		12	ERP Operating LP
	7.88%, 09/01/2021			128		150	2.38%, 07/01/2019		400		402
	Williams Partners LP						4.75%, 07/15/2020		51		56
	3.90%, 01/15/2025			350		330	Federal Realty Investment Trust
	4.00%, 09/15/2025			80		75	2.75%, 06/01/2023		150		143
	5.10%, 09/15/2045			180		159	HCP Inc
	5.25%, 03/15/2020			180		196	3.40%, 02/01/2025		300		282
	6.30%, 04/15/2040			343		348	4.20%, 03/01/2024		250		250
				$		18,159	4.25%, 11/15/2023		200		202
							5.38%, 02/01/2021		51		56
	Real Estate - 0.03%						6.70%, 01/30/2018		15		17
	Brookfield Asset Management Inc						Health Care REIT Inc
	4.00%, 01/15/2025			300		297	3.75%, 03/15/2023		200		198
	Prologis LP						6.13%, 04/15/2020		115		131
	4.50%, 08/15/2017			200		212	Highwoods Realty LP
	6.88%, 03/15/2020			2		2	3.20%, 06/15/2021		350		348
				$		511	Hospitality Properties Trust
	Regional Authority - 0.26%						5.00%, 08/15/2022		100		104
	Province of British Columbia Canada						6.70%, 01/15/2018		77		84
	2.65%, 09/22/2021			77		79	Host Hotels & Resorts LP
	6.50%, 01/15/2026			18		24	6.00%, 10/01/2021		200		227
	Province of Manitoba Canada						Kimco Realty Corp
	1.30%, 04/03/2017			280		282	3.13%, 06/01/2023		200		191
	3.05%, 05/14/2024			500		514	3.20%, 05/01/2021		250		251
	Province of Nova Scotia Canada						Liberty Property LP
	5.13%, 01/26/2017			41		44	3.38%, 06/15/2023		300		290
	Province of Ontario Canada						Omega Healthcare Investors Inc
	1.00%, 07/22/2016			350		352	4.50%, 01/15/2025(b)		300		295
	2.50%, 09/10/2021			500		505	4.95%, 04/01/2024		750		767
	3.15%, 12/15/2017			200		210	Realty Income Corp
	3.20%, 05/16/2024			750		780	2.00%, 01/31/2018		100		101
	4.00%, 10/07/2019			277		303	4.65%, 08/01/2023		250		263
	4.40%, 04/14/2020			151		168	5.88%, 03/15/2035		51		57
	4.95%, 11/28/2016			180		190	Regency Centers LP
	Province of Quebec Canada						3.75%, 06/15/2024		200		200
	2.75%, 08/25/2021			231		236	Simon Property Group LP
	3.50%, 07/29/2020			750		804	2.15%, 09/15/2017		102		104
	5.13%, 11/14/2016			351		372	2.20%, 02/01/2019		400		404
	7.50%, 09/15/2029			64		93	4.13%, 12/01/2021		200		215
	Province of Saskatchewan Canada						5.65%, 02/01/2020		47		54
	8.50%, 07/15/2022			6		8	6.75%, 02/01/2040		25		32
				$		4,964	10.35%, 04/01/2019		90		114
							Tanger Properties LP
	REITS - 0.63	%					3.88%, 12/01/2023		250		253
	Alexandria Real Estate Equities Inc						Ventas Realty LP / Ventas Capital Corp
	2.75%, 01/15/2020			750		742	2.00%, 02/15/2018		750		755
	American Tower Corp						4.25%, 03/01/2022		128		133
	4.70%, 03/15/2022			278		290	Weingarten Realty Investors
	AvalonBay Communities Inc						3.38%, 10/15/2022		180		175
	2.95%, 09/15/2022			100		98	Weyerhaeuser Co
	3.63%, 10/01/2020			100		104	7.38%, 03/15/2032		300		375
	4.20%, 12/15/2023			400		418			$		11,877
	BioMed Realty LP
	2.63%, 05/01/2019			200		199	Retail - 0.84%
	6.13%, 04/15/2020			6		7	AutoNation Inc
	Boston Properties LP						6.75%, 04/15/2018		200		223
	3.85%, 02/01/2023			200		205	AutoZone Inc
	4.13%, 05/15/2021			77		82	4.00%, 11/15/2020		251		267

See accompanying notes.

117

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal						Principal
BONDS (continued)		Amount (000's)       Value (000's)			BONDS (continued)			Amount (000's)  Value (000's)
Retail (continued)					Retail (continued)
Bed Bath & Beyond Inc					Wal-Mart Stores Inc	(continued)
5.17%, 08/01/2044	$	500	$	496	4.25%, 04/15/2021		$	51	$	56
Costco Wholesale Corp					4.30%, 04/22/2044			500		501
1.13%, 12/15/2017		1,000		998	5.25%, 09/01/2035			350		397
CVS Health Corp					5.63%, 04/01/2040			38		44
2.25%, 08/12/2019		500		498	5.63%, 04/15/2041			280		330
4.13%, 05/15/2021		500		535	5.80%, 02/15/2018			128		143
5.75%, 06/01/2017		15		16	6.20%, 04/15/2038			25		31
6.13%, 09/15/2039		79		93	6.50%, 08/15/2037			415		533
6.25%, 06/01/2027		100		121	7.55%, 02/15/2030			128		181
Darden Restaurants Inc					Yum! Brands Inc
7.05%, 10/15/2037(a)		27		33	6.25%, 03/15/2018			7		8
Dollar General Corp					6.88%, 11/15/2037			7		8
1.88%, 04/15/2018		300		299				$		15,926
Gap Inc/The
5.95%, 04/12/2021		275		311	Semiconductors - 0.20%
Home Depot Inc/The					Intel Corp
2.25%, 09/10/2018		750		768	1.35%, 12/15/2017			300		300
3.75%, 02/15/2024		350		364	3.30%, 10/01/2021			177		185
5.88%, 12/16/2036		237		285	4.00%, 12/15/2032			200		192
5.95%, 04/01/2041		351		427	4.25%, 12/15/2042			200		188
Kohl's Corp					4.80%, 10/01/2041			77		77
4.00%, 11/01/2021		277		292	KLA-Tencor Corp
6.00%, 01/15/2033		300		324	4.65%, 11/01/2024			500		500
6.25%, 12/15/2017		200		222	Lam Research Corp
Lowe's Cos Inc					2.75%, 03/15/2020			300		298
3.80%, 11/15/2021		102		108	Maxim Integrated Products Inc
4.63%, 04/15/2020		77		84	2.50%, 11/15/2018			200		201
5.80%, 04/15/2040		77		91	QUALCOMM Inc
6.65%, 09/15/2037		312		398	2.25%, 05/20/2020			370		368
Macy's Retail Holdings Inc					3.45%, 05/20/2025			270		263
2.88%, 02/15/2023		300		289	4.65%, 05/20/2035			100		97
4.30%, 02/15/2043		200		180	4.80%, 05/20/2045			150		144
5.90%, 12/01/2016		225		240	Texas Instruments Inc
6.65%, 07/15/2024		25		30	0.88%, 03/12/2017			200		200
6.90%, 04/01/2029		125		153	1.65%, 08/03/2019			200		197
McDonald's Corp					2.75%, 03/12/2021			400		408
3.50%, 07/15/2020		151		159	Xilinx Inc
3.70%, 02/15/2042		128		108	2.13%, 03/15/2019			175		175
4.88%, 07/15/2040		9		9				$		3,793
5.35%, 03/01/2018		36		40	Software - 0.36%
6.30%, 10/15/2037		262		310	Adobe Systems Inc
Nordstrom Inc					4.75%, 02/01/2020			51		56
4.75%, 05/01/2020		36		40	CDK Global Inc
6.25%, 01/15/2018		12		13	3.30%, 10/15/2019			500		501
O'Reilly Automotive Inc					Fidelity National Information Services Inc
3.85%, 06/15/2023		300		304	2.00%, 04/15/2018			300		300
QVC Inc					Fiserv Inc
4.38%, 03/15/2023		250		246	3.50%, 10/01/2022			100		99
Signet UK Finance PLC					Microsoft Corp
4.70%, 06/15/2024		250		253	2.38%, 02/12/2022			350		344
Staples Inc					3.00%, 10/01/2020			600		625
4.38%, 01/12/2023		180		181	4.00%, 02/12/2055			850		763
Starbucks Corp					4.20%, 06/01/2019			115		126
0.88%, 12/05/2016		500		500	4.50%, 10/01/2040			100		102
Target Corp					5.30%, 02/08/2041			77		87
4.00%, 07/01/2042		300		284	Oracle Corp
6.00%, 01/15/2018		149		166	2.38%, 01/15/2019			450		457
6.50%, 10/15/2037		700		896	2.50%, 10/15/2022			1,500		1,445
Walgreen Co					3.88%, 07/15/2020			77		83
4.40%, 09/15/2042		100		89	4.30%, 07/08/2034			1,000		986
5.25%, 01/15/2019		30		33	4.38%, 05/15/2055			590		548
Walgreens Boots Alliance Inc					5.00%, 07/08/2019			48		53
1.75%, 11/17/2017		200		201	5.75%, 04/15/2018			180		200
2.70%, 11/18/2019		300		300				$		6,775
4.80%, 11/18/2044		300		282
Wal-Mart Stores Inc					Sovereign - 1.97%
2.55%, 04/11/2023		950		917	Brazilian Government International Bond
3.25%, 10/25/2020		51		54	2.63%, 01/05/2023			300		266
3.63%, 07/08/2020		51		54	4.88%, 01/22/2021			257		269
4.13%, 02/01/2019		102		110	5.00%, 01/27/2045			510		441

See accompanying notes.

118

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)       Value (000's)			BONDS (continued)		Amount (000's)    Value (000's)
Sovereign (continued)					Sovereign (continued)
Brazilian Government International					Philippine Government International
Bond (continued)					Bond (continued)
5.88%, 01/15/2019	$	102	$	113	5.00%, 01/13/2037	$	300	$	347
7.13%, 01/20/2037		210		237	6.38%, 10/23/2034		210		279
8.00%, 01/15/2018		60		65	6.50%, 01/20/2020		200		237
8.25%, 01/20/2034		651		809	8.38%, 06/17/2019		500		619
8.88%, 10/14/2019		122		152	9.38%, 01/18/2017		200		225
8.88%, 04/15/2024		150		197	9.50%, 02/02/2030		400		647
8.88%, 04/15/2024		200		263	10.63%, 03/16/2025		400		638
12.25%, 03/06/2030		341		587	Poland Government International Bond
11.00%, 08/17/2040		12		12	4.00%, 01/22/2024		1,000		1,046
Canada Government International Bond					5.00%, 03/23/2022		528		585
0.88%, 02/14/2017		255		256	5.13%, 04/21/2021		51		57
Chile Government International Bond					6.38%, 07/15/2019		444		513
3.13%, 03/27/2025		250		250	Republic of Korea
3.25%, 09/14/2021		180		188	3.88%, 09/11/2023		250		269
Colombia Government International Bond					5.13%, 12/07/2016		600		636
4.38%, 07/12/2021		100		105	South Africa Government International Bond
5.63%, 02/26/2044		1,000		1,012	4.67%, 01/17/2024		200		204
6.13%, 01/18/2041		200		216	6.25%, 03/08/2041		750		847
8.13%, 05/21/2024		201		258	6.88%, 05/27/2019		500		569
11.75%, 02/25/2020		180		245	Svensk Exportkredit AB
10.38%, 01/28/2033		100		150	1.75%, 05/30/2017		200		203
Export Development Canada					1.88%, 06/17/2019		500		506
0.63%, 12/15/2016		500		500	Tennessee Valley Authority
1.75%, 08/19/2019		400		403	3.50%, 12/15/2042		400		374
Export-Import Bank of Korea					3.88%, 02/15/2021		250		275
2.25%, 01/21/2020		300		297	4.50%, 04/01/2018		51		56
3.25%, 08/12/2026		500		490	5.25%, 09/15/2039		751		914
4.00%, 01/11/2017		300		312	5.38%, 04/01/2056		154		186
4.00%, 01/14/2024		250		265	6.75%, 11/01/2025		102		136
5.00%, 04/11/2022		200		225	Turkey Government International Bond
Israel Government AID Bond					3.25%, 03/23/2023		700		651
5.50%, 09/18/2023		25		30	4.88%, 04/16/2043		900		819
5.50%, 04/26/2024		125		152	5.75%, 03/22/2024		250		271
5.50%, 09/18/2033		12		15	6.63%, 02/17/2045		200		229
Israel Government International Bond					6.75%, 04/03/2018		500		551
5.13%, 03/26/2019		147		165	7.00%, 09/26/2016		200		214
Italy Government International Bond					7.00%, 06/05/2020		500		571
5.25%, 09/20/2016		333		349	7.38%, 02/05/2025		750		900
5.38%, 06/12/2017		750		807	7.50%, 11/07/2019		300		346
5.38%, 06/15/2033		64		71	8.00%, 02/14/2034		400		516
6.88%, 09/27/2023		212		263	Uruguay Government International Bond
Japan Bank for International					4.13%, 11/20/2045		100		85
Cooperation/Japan					8.00%, 11/18/2022		1,015		1,305
1.13%, 07/19/2017		100		100			$		37,321
1.75%, 07/31/2018		650		657
3.00%, 05/29/2024		1,000		1,032	Supranational Bank - 1.52%
Mexico Government International Bond					African Development Bank
3.50%, 01/21/2021		500		510	0.75%, 10/18/2016		330		331
3.60%, 01/30/2025		210		207	0.88%, 03/15/2018		800		795
3.63%, 03/15/2022		300		304	1.25%, 09/02/2016		257		259
4.60%, 01/23/2046		520		481	Asian Development Bank
4.75%, 03/08/2044		506		481	0.75%, 01/11/2017		500		501
5.13%, 01/15/2020		600		661	1.13%, 03/15/2017		428		431
5.55%, 01/21/2045		300		319	1.50%, 01/22/2020		300		298
5.95%, 03/19/2019		778		873	1.75%, 09/11/2018		500		508
6.05%, 01/11/2040		464		527	1.88%, 02/18/2022		250		246
8.30%, 08/15/2031		738		1,087	2.13%, 11/24/2021		750		754
Panama Government International Bond					2.13%, 03/19/2025		300		290
5.20%, 01/30/2020		1,154		1,272	5.82%, 06/16/2028		15		19
6.70%, 01/26/2036		224		277	6.38%, 10/01/2028		51		67
8.88%, 09/30/2027		77		109	Corp Andina de Fomento
Peruvian Government International Bond					4.38%, 06/15/2022		22		24
5.63%, 11/18/2050		128		143	Council Of Europe Development Bank
6.55%, 03/14/2037		126		157	1.13%, 05/31/2018		1,000		998
7.13%, 03/30/2019		30		35	1.50%, 02/22/2017		128		130
7.35%, 07/21/2025		180		235	1.63%, 03/10/2020		300		299
8.75%, 11/21/2033		192		290	European Bank for Reconstruction &
Philippine Government International Bond					Development
3.95%, 01/20/2040		300		303	1.00%, 02/16/2017		357		359
					1.63%, 04/10/2018		250		252

See accompanying notes.

119

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)       Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
Supranational Bank (continued)					Telecommunications (continued)
European Bank for Reconstruction &					AT&T Inc (continued)
Development (continued)					4.35%, 06/15/2045	$	950	$	811
1.63%, 11/15/2018	$	300	$	303	4.50%, 05/15/2035		200		184
1.75%, 06/14/2019		500		503	4.75%, 05/15/2046		200		182
1.88%, 02/23/2022		250		245	5.50%, 02/01/2018		702		767
European Investment Bank					6.30%, 01/15/2038		500		555
1.00%, 08/17/2017		1,000		1,003	6.50%, 09/01/2037		521		589
1.00%, 03/15/2018		750		748	BellSouth Corp
1.13%, 09/15/2017		1,400		1,407	6.00%, 11/15/2034		200		204
1.25%, 05/15/2018		500		501	British Telecommunications PLC
1.63%, 03/16/2020		300		298	5.95%, 01/15/2018		669		739
1.75%, 03/15/2017		528		537	9.62%, 12/15/2030(a)		77		114
1.75%, 06/17/2019		750		756	Cisco Systems Inc
1.88%, 03/15/2019		500		508	4.45%, 01/15/2020		102		112
1.88%, 02/10/2025		850		799	4.95%, 02/15/2019		855		944
2.50%, 04/15/2021		1,500		1,541	5.90%, 02/15/2039		680		812
3.25%, 01/29/2024		1,000		1,063	Deutsche Telekom International Finance BV
4.88%, 01/17/2017		400		426	6.00%, 07/08/2019		300		343
4.88%, 02/15/2036		25		31	8.75%, 06/15/2030(a)		141		198
5.13%, 09/13/2016		154		162	Juniper Networks Inc
5.13%, 05/30/2017		102		110	4.35%, 06/15/2025		200		199
FMS Wertmanagement AoeR					4.60%, 03/15/2021		1,000		1,056
1.13%, 10/14/2016		400		403	Motorola Solutions Inc
1.75%, 03/17/2020		300		300	4.00%, 09/01/2024		500		485
Inter-American Development Bank					Orange SA
0.88%, 11/15/2016		350		352	4.13%, 09/14/2021		128		135
1.00%, 07/14/2017		1,000		1,003	5.38%, 01/13/2042		102		105
1.13%, 03/15/2017		257		259	9.00%, 03/01/2031(a)		315		444
1.75%, 08/24/2018		500		508	Pacific Bell Telephone Co
1.75%, 10/15/2019		500		504	7.13%, 03/15/2026		377		461
2.13%, 11/09/2020		250		255	Qwest Corp
3.00%, 02/21/2024		250		263	6.75%, 12/01/2021		200		221
3.88%, 09/17/2019		577		630	7.25%, 10/15/2035		200		205
3.88%, 02/14/2020		77		85	Rogers Communications Inc
International Bank for Reconstruction &					3.00%, 03/15/2023		400		384
Development					5.00%, 03/15/2044		500		494
0.63%, 05/02/2017		500		498	6.80%, 08/15/2018		108		123
0.88%, 04/17/2017		500		502	Telefonica Emisiones SAU
1.00%, 09/15/2016		257		259	3.19%, 04/27/2018		1,000		1,027
1.13%, 07/18/2017		500		504	5.13%, 04/27/2020		168		184
1.38%, 04/10/2018		500		505	7.05%, 06/20/2036		295		362
1.63%, 02/10/2022		1,000		968	Verizon Communications Inc
1.88%, 03/15/2019		500		509	1.10%, 11/01/2017		100		99
2.13%, 11/01/2020		750		765	2.45%, 11/01/2022		100		94
2.25%, 06/24/2021		500		510	2.63%, 02/21/2020		1,189		1,186
7.63%, 01/19/2023		12		16	4.40%, 11/01/2034		500		463
International Finance Corp					4.50%, 09/15/2020		400		432
0.63%, 11/15/2016		250		250	4.60%, 04/01/2021		77		83
0.88%, 06/15/2018		300		298	4.67%, 03/15/2055(b)		350		305
1.13%, 11/23/2016		328		330	5.01%, 08/21/2054		700		642
1.25%, 07/16/2018		500		501	5.15%, 09/15/2023		1,100		1,204
Nordic Investment Bank					6.25%, 04/01/2037		261		295
5.00%, 02/01/2017		354		378	6.35%, 04/01/2019		982		1,122
		$		28,857	6.40%, 09/15/2033		900		1,031
					6.55%, 09/15/2043		1,960		2,293
Telecommunications - 1.57%					6.90%, 04/15/2038		256		306
America Movil SAB de CV					7.75%, 12/01/2030		146		189
2.38%, 09/08/2016		357		362	Vodafone Group PLC
3.13%, 07/16/2022		100		99	2.95%, 02/19/2023		200		187
5.63%, 11/15/2017		1,015		1,111	5.45%, 06/10/2019		180		199
6.13%, 03/30/2040		102		118	5.63%, 02/27/2017		448		476
6.38%, 03/01/2035		200		233	6.15%, 02/27/2037		201		215
AT&T Inc					6.25%, 11/30/2032		1,000		1,095
1.60%, 02/15/2017		128		129			$		29,769
1.70%, 06/01/2017		1,045		1,049
2.45%, 06/30/2020		200		196	Toys, Games & Hobbies - 0.03%
2.63%, 12/01/2022		600		564	Hasbro Inc
3.00%, 02/15/2022		940		918	3.15%, 05/15/2021		250		252
3.00%, 06/30/2022		200		193	6.35%, 03/15/2040		25		28
3.40%, 05/15/2025		200		191	Mattel Inc
3.88%, 08/15/2021		77		79	2.35%, 05/06/2019		250		250
4.30%, 12/15/2042		201		172			$		530

See accompanying notes.

120

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
				Principal					Principal
	BONDS (continued)			Amount (000's)  Value (000's)			MUNICIPAL BONDS (continued)		Amount (000's)   Value (000's)
	Transportation - 0.46%						California (continued)
	Burlington Northern Santa Fe LLC						Los Angeles Department of Water & Power
	3.00%, 04/01/2025		$	500	$	479	6.57%, 07/01/2045	$	150	$	198
	4.70%, 10/01/2019			783		863	Los Angeles Unified School District/CA
	5.15%, 09/01/2043			350		376	5.75%, 07/01/2034		80		94
	5.65%, 05/01/2017			54		58	5.76%, 07/01/2029		50		60
	6.20%, 08/15/2036			500		611	6.76%, 07/01/2034		130		169
	7.95%, 08/15/2030			77		108	Regents of the University of California
	Canadian National Railway Co						Medical Center Pooled Revenue
	1.45%, 12/15/2016			51		51	6.55%, 05/15/2048		250		311
	2.25%, 11/15/2022			200		191	Sacramento Municipal Utility District
	3.50%, 11/15/2042			200		173	6.16%, 05/15/2036		120		144
	5.55%, 03/01/2019			15		17	San Diego County Water Authority Financing
	Canadian Pacific Railway Co						Corp
	4.45%, 03/15/2023			128		137	6.14%, 05/01/2049		460		575
	CSX Corp						Santa Clara Valley Transportation Authority
	3.70%, 11/01/2023			500		513	5.88%, 04/01/2032		25		30
	4.75%, 05/30/2042			277		277	State of California
	6.25%, 03/15/2018			82		92	6.65%, 03/01/2022		1,275		1,539
	FedEx Corp						7.30%, 10/01/2039		375		521
	2.63%, 08/01/2022			100		97	7.60%, 11/01/2040		180		267
	3.88%, 08/01/2042			100		87	7.63%, 03/01/2040		280		404
	3.90%, 02/01/2035			300		277	7.95%, 03/01/2036		500		605
	4.50%, 02/01/2065			500		436	University of California
	Norfolk Southern Corp						1.80%, 07/01/2019		300		297
	3.25%, 12/01/2021			251		258	3.93%, 05/15/2045		200		188
	3.85%, 01/15/2024			200		206	5.77%, 05/15/2043		200		240
	4.80%, 08/15/2043			350		357			$		6,882
	4.84%, 10/01/2041			100		102
	7.25%, 02/15/2031			130		165	Connecticut - 0.00%
	Ryder System Inc						State of Connecticut
	2.35%, 02/26/2019			200		200	5.85%, 03/15/2032		25		30
	2.45%, 09/03/2019			350		349
	Union Pacific Corp						District of Columbia - 0.02%
	4.15%, 01/15/2045			350		335	District of Columbia Water & Sewer
	4.16%, 07/15/2022			241		259	Authority
	4.75%, 09/15/2041			77		80	4.81%, 10/01/2114		450		443
	United Parcel Service Inc
	1.13%, 10/01/2017			400		401
	3.13%, 01/15/2021			1,128		1,175	Florida - 0.01%
	4.88%, 11/15/2040			25		27	State Board of Administration Finance Corp
	6.20%, 01/15/2038			23		29	2.11%, 07/01/2018		200		202
				$		8,786
							Georgia - 0.03%
	Trucking & Leasing - 0.04%						Municipal Electric Authority of Georgia
	GATX Corp
	1.25%, 03/04/2017			500		498	6.64%, 04/01/2057		151		181
							7.06%, 04/01/2057		200		219
	4.75%, 06/15/2022			200		213	State of Georgia
				$		711	4.50%, 11/01/2025		175		191
	Water - 0.00	%							$		591
	American Water Capital Corp
	6.59%, 10/15/2037			5		6	Illinois - 0.11%
							Chicago Transit Authority
							6.20%, 12/01/2040		70		74
	TOTAL BONDS			$		656,250	6.90%, 12/01/2040		200		227
				Principal			City of Chicago IL
	MUNICIPAL BONDS - 0.87%			Amount (000's)   Value (000's)			6.31%, 01/01/2044		250		218
	California - 0.35%						City of Chicago IL Waterworks Revenue
	Bay Area Toll Authority						6.74%, 11/01/2040		145		164
	6.26%, 04/01/2049		$	300	$	388	County of Cook IL
	6.92%, 04/01/2040			270		347	6.23%, 11/15/2034		102		101
	City of Los Angeles Department of Airports						State of Illinois
	6.58%, 05/15/2039			100		126	4.95%, 06/01/2023		30		31
	City of San Francisco CA Public Utilities						5.10%, 06/01/2033		735		682
	Commission Water Revenue						5.37%, 03/01/2017		100		105
	6.00%, 11/01/2040			200		239	5.88%, 03/01/2019		345		371
	East Bay Municipal Utility District Water						7.35%, 07/01/2035		70		76
	System Revenue								$		2,049
	5.87%, 06/01/2040			60		73
	Los Angeles Department of Water
	6.01%, 07/01/2039			55		67

See accompanying notes.

121

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
				Principal						Principal
	MUNICIPAL BONDS (continued)			Amount (000's)                  Value (000's)			MUNICIPAL BONDS (continued)			Amount (000's)       Value (000's)
	Kansas - 0.01%						Texas (continued)
	State of Kansas Department of						Dallas Convention Center Hotel Development
	Transportation						Corp
	4.60%, 09/01/2035		$	115	$	124	7.09%, 01/01/2042		$	70	$	87
							Dallas County Hospital District
							5.62%, 08/15/2044			83		99
	Nevada - 0.00%
	County of Clark Department of Aviation						Dallas Independent School District (credit
							support from PSF-GTD)
	6.82%, 07/01/2045			25		34	6.45%, 02/15/2035(e)			50		58
	6.88%, 07/01/2042			70		79	Grand Parkway Transportation Corp
				$		113	5.18%, 10/01/2042			300		346
	New Jersey - 0.05%						State of Texas
	New Jersey Economic Development						4.68%, 04/01/2040			100		110
	Authority (credit support from AGM)						5.52%, 04/01/2039			405		498
	0.00%, 02/15/2023(c),(e)			51		36	Texas Transportation Commission State
	New Jersey Economic Development						Highway Fund
	Authority (credit support from NATL-RE)						5.18%, 04/01/2030			125		143
	7.43%, 02/15/2029(e)			200		227				$		1,970
	New Jersey State Turnpike Authority
	7.10%, 01/01/2041			147		197	Utah - 0.02	%
	New Jersey Transportation Trust Fund						State of Utah
	Authority						3.54%, 07/01/2025			300		313
	5.75%, 12/15/2028			190		201
	6.56%, 12/15/2040			210		219	Washington - 0.00%
	Rutgers The State University of New						State of Washington
	Jersey (credit support from GO OF UNIV)						5.09%, 08/01/2033			20		22
	5.67%, 05/01/2040(e)			130		150
				$		1,030
							Wisconsin - 0.00%
	New York - 0.14%						State of Wisconsin (credit support from
	City of New York NY						AGM)
	5.52%, 10/01/2037			25		29	5.70%, 05/01/2026(e)			50		59
	5.85%, 06/01/2040			300		365
	Metropolitan Transportation Authority						TOTAL MUNICIPAL BONDS			$		16,455
	6.55%, 11/15/2031			180		230	U.S. GOVERNMENT & GOVERNMENT			Principal
	6.65%, 11/15/2039			100		128	AGENCY OBLIGATIONS - 64.19%			Amount (000's)         Value (000's)
	6.81%, 11/15/2040			135		176
	New York City Transitional Finance Authority						Federal Home Loan Mortgage Corporation (FHLMC) - 7.64	%
	Future Tax Secured Revenue						2.00%, 09/01/2028		$	235	$	234
	5.51%, 08/01/2037			250		298	2.00%, 08/01/2029			994		989
	New York City Water & Sewer System						2.23%, 07/01/2043(a)			237		242
	5.72%, 06/15/2042			270		330	2.43%, 10/01/2043(a)			631		645
	5.95%, 06/15/2042			125		157	2.50%, 08/01/2027			198		203
	New York State Dormitory Authority						2.50%, 08/01/2027			188		192
	5.60%, 03/15/2040			100		119	2.50%, 10/01/2027			354		362
	Port Authority of New York & New Jersey						2.50%, 03/01/2028			777		794
	4.46%, 10/01/2062			100		96	2.50%, 04/01/2028			162		165
	4.96%, 08/01/2046			300		318	2.50%, 04/01/2028			56		57
	Port Authority of New York &New						2.50%, 06/01/2028			192		196
	Jersey (credit support from GO OF AUTH)						2.50%, 06/01/2028			408		417
	6.04%, 12/01/2029(e)			50		61	2.50%, 06/01/2028			176		180
				$		2,307	2.50%, 06/01/2028			992		1,013
							2.50%, 07/01/2028			664		678
	Ohio - 0.02	%					2.50%, 10/01/2028			356		363
	American Municipal Power Inc						2.50%, 10/01/2028			335		343
	6.27%, 02/15/2050			69		81	2.50%, 07/01/2029(f)			3,300		3,338
	7.50%, 02/15/2050			75		101	2.50%, 10/01/2029			916		927
	Ohio State University/The						2.50%, 12/01/2029			1,132		1,146
	4.91%, 06/01/2040			125		138	2.50%, 08/01/2030(f)			300		302
				$		320	2.50%, 02/01/2043			270		258
							2.67%, 01/01/2042(a)			52		55
	Texas - 0.11	%
	City of Houston TX Combined Utility System						3.00%, 01/01/2027			394		409
	Revenue						3.00%, 02/01/2027			145		150
	3.83%, 05/15/2028			250		256	3.00%, 02/01/2027			344		357
	City Public Service Board of San Antonio						3.00%, 03/01/2027			304		316
	TX						3.00%, 06/01/2027			233		242
	5.72%, 02/01/2041			125		152	3.00%, 10/01/2028			854		886
	5.81%, 02/01/2041			135		165	3.00%, 07/01/2029			1,030		1,068
	Dallas Area Rapid Transit						3.00%, 07/01/2029(f)			1,800		1,863
	5.02%, 12/01/2048			50		56	3.00%, 07/01/2029			816		846
							3.00%, 07/01/2029			599		621
							3.00%, 08/01/2029			451		467
							3.00%, 09/01/2029			193		200

See accompanying notes.

122

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)     Value (000's)			AGENCY OBLIGATIONS (continued)		Amount (000's)  Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)					Federal Home Loan Mortgage Corporation (FHLMC)
(continued)					(continued)
3.00%, 10/01/2029	$	269	$	279	3.50%, 02/01/2032	$	153	$	159
3.00%, 11/01/2029		459		476	3.50%, 03/01/2032		184		192
3.00%, 11/01/2029		269		278	3.50%, 04/01/2032		173		180
3.00%, 12/01/2029		94		97	3.50%, 08/01/2032		146		152
3.00%, 02/01/2032		167		170	3.50%, 01/01/2034		164		171
3.00%, 04/01/2033		422		429	3.50%, 02/01/2035		292		305
3.00%, 04/01/2033		417		424	3.50%, 02/01/2041		68		70
3.00%, 06/01/2033		257		262	3.50%, 10/01/2041		67		69
3.00%, 09/01/2033		355		361	3.50%, 11/01/2041		64		66
3.00%, 09/01/2033		352		358	3.50%, 01/01/2042		143		148
3.00%, 01/01/2035		95		97	3.50%, 02/01/2042		821		847
3.00%, 01/01/2043		582		581	3.50%, 02/01/2042		65		67
3.00%, 01/01/2043		789		787	3.50%, 03/01/2042		74		76
3.00%, 04/01/2043		502		501	3.50%, 03/01/2042		18		19
3.00%, 05/01/2043		526		524	3.50%, 04/01/2042		48		49
3.00%, 06/01/2043		926		922	3.50%, 04/01/2042		172		178
3.00%, 06/01/2043		298		297	3.50%, 04/01/2042		193		199
3.00%, 07/01/2043		807		804	3.50%, 04/01/2042		196		202
3.00%, 07/01/2043		92		92	3.50%, 04/01/2042		184		190
3.00%, 07/01/2043		823		820	3.50%, 06/01/2042		138		142
3.00%, 07/01/2043		1,579		1,573	3.50%, 06/01/2042		502		517
3.00%, 08/01/2043		45		45	3.50%, 06/01/2042		139		143
3.00%, 08/01/2043		383		382	3.50%, 07/01/2042		715		737
3.00%, 08/01/2043		183		182	3.50%, 07/01/2042		857		883
3.00%, 08/01/2043		342		341	3.50%, 08/01/2042		364		375
3.00%, 08/01/2043		2,632		2,623	3.50%, 08/01/2042		870		897
3.00%, 08/01/2043		363		361	3.50%, 08/01/2042		177		183
3.00%, 08/01/2043		502		500	3.50%, 02/01/2043		903		931
3.00%, 09/01/2043		939		936	3.50%, 08/01/2043		70		72
3.00%, 09/01/2043		98		98	3.50%, 02/01/2044		907		934
3.00%, 09/01/2043		586		584	3.50%, 06/01/2044		1,676		1,726
3.00%, 09/01/2043		442		441	3.50%, 07/01/2044(f)		16,600		17,077
3.00%, 10/01/2043		771		768	3.50%, 08/01/2044		961		990
3.00%, 10/01/2043		246		245	3.50%, 09/01/2044		870		896
3.00%, 07/01/2044(f)		4,600		4,573	3.50%, 08/01/2045(f)		1,500		1,536
3.00%, 04/01/2045		399		397	4.00%, 05/01/2018		106		111
3.00%, 06/01/2045		1,350		1,343	4.00%, 05/01/2018		11		11
3.00%, 08/01/2045(f)		750		742	4.00%, 10/01/2018		78		81
3.50%, 04/01/2021		76		80	4.00%, 04/01/2019		19		20
3.50%, 10/01/2023		182		192	4.00%, 10/01/2020		78		82
3.50%, 10/01/2025		17		18	4.00%, 05/01/2024		66		70
3.50%, 10/01/2025		25		27	4.00%, 05/01/2024		120		126
3.50%, 11/01/2025		57		60	4.00%, 12/01/2024		16		17
3.50%, 11/01/2025		43		45	4.00%, 01/01/2025		39		42
3.50%, 11/01/2025		7		8	4.00%, 02/01/2025		26		27
3.50%, 11/01/2025		12		13	4.00%, 03/01/2025		21		22
3.50%, 11/01/2025		20		21	4.00%, 03/01/2025		31		33
3.50%, 12/01/2025		16		17	4.00%, 04/01/2025		33		34
3.50%, 12/01/2025		50		52	4.00%, 06/01/2025		354		375
3.50%, 01/01/2026		724		765	4.00%, 06/01/2025		56		59
3.50%, 01/01/2026		33		35	4.00%, 06/01/2025		29		31
3.50%, 02/01/2026		27		28	4.00%, 06/01/2025		33		35
3.50%, 04/01/2026		71		75	4.00%, 07/01/2025		11		12
3.50%, 05/01/2026		75		79	4.00%, 07/01/2025		508		542
3.50%, 06/01/2026		18		19	4.00%, 08/01/2025		22		23
3.50%, 06/01/2026		11		12	4.00%, 08/01/2025		33		36
3.50%, 07/01/2026		11		11	4.00%, 09/01/2025		6		7
3.50%, 07/01/2026		69		73	4.00%, 10/01/2025		77		82
3.50%, 07/01/2026		52		55	4.00%, 02/01/2026		35		37
3.50%, 08/01/2026		42		45	4.00%, 05/01/2026		94		100
3.50%, 09/01/2026		56		60	4.00%, 07/01/2026		62		66
3.50%, 10/01/2026		34		36	4.00%, 12/01/2030		88		93
3.50%, 01/01/2027		77		81	4.00%, 08/01/2031		100		107
3.50%, 01/01/2029		462		487	4.00%, 10/01/2031		132		141
3.50%, 06/01/2029		476		502	4.00%, 11/01/2031		40		42
3.50%, 07/01/2029(f)		300		316	4.00%, 12/01/2031		63		68
3.50%, 07/01/2029		174		183	4.00%, 11/01/2033		164		175
3.50%, 08/01/2029		100		106	4.00%, 01/01/2034		260		278
3.50%, 09/01/2029		99		105	4.00%, 06/01/2039		6		7
3.50%, 01/01/2030		50		53	4.00%, 07/01/2039		56		60
3.50%, 01/01/2032		244		254	4.00%, 09/01/2039		33		35

See accompanying notes.

123

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT	Principal				U.S. GOVERNMENT & GOVERNMENT	Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)       Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)  Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)					Federal Home Loan Mortgage Corporation (FHLMC)
(continued)					(continued)
4.00%, 12/01/2039	$	28	$	29	4.50%, 03/01/2039	$	47	$	51
4.00%, 12/01/2039		43		46	4.50%, 04/01/2039		113		122
4.00%, 01/01/2040		42		45	4.50%, 05/01/2039		347		375
4.00%, 03/01/2040		22		24	4.50%, 06/01/2039		352		381
4.00%, 09/01/2040		10		11	4.50%, 06/01/2039		66		71
4.00%, 09/01/2040		57		60	4.50%, 09/01/2039		522		566
4.00%, 10/01/2040		116		123	4.50%, 10/01/2039		226		244
4.00%, 10/01/2040		44		47	4.50%, 10/01/2039		114		125
4.00%, 12/01/2040		79		84	4.50%, 11/01/2039		67		72
4.00%, 12/01/2040		141		150	4.50%, 11/01/2039		99		107
4.00%, 12/01/2040		81		86	4.50%, 11/01/2039		87		95
4.00%, 12/01/2040		67		72	4.50%, 11/01/2039		31		33
4.00%, 12/01/2040		53		57	4.50%, 12/01/2039		149		164
4.00%, 02/01/2041		153		162	4.50%, 12/01/2039		47		51
4.00%, 02/01/2041		122		129	4.50%, 02/01/2040		85		92
4.00%, 02/01/2041		544		577	4.50%, 02/01/2040		120		132
4.00%, 04/01/2041		61		65	4.50%, 02/01/2040		114		125
4.00%, 07/01/2041		51		54	4.50%, 02/01/2040		19		20
4.00%, 08/01/2041		118		125	4.50%, 04/01/2040		96		104
4.00%, 08/01/2041		47		50	4.50%, 05/01/2040		32		34
4.00%, 10/01/2041		19		20	4.50%, 05/01/2040		102		112
4.00%, 10/01/2041		152		161	4.50%, 07/01/2040		78		85
4.00%, 10/01/2041		72		76	4.50%, 07/01/2040		84		92
4.00%, 10/01/2041		162		172	4.50%, 08/01/2040		37		40
4.00%, 10/01/2041		61		65	4.50%, 08/01/2040		38		41
4.00%, 11/01/2041		160		169	4.50%, 08/01/2040		136		147
4.00%, 11/01/2041		279		296	4.50%, 08/01/2040		72		78
4.00%, 11/01/2041		103		109	4.50%, 08/01/2040		50		54
4.00%, 03/01/2042		167		177	4.50%, 09/01/2040		21		23
4.00%, 06/01/2042		319		338	4.50%, 09/01/2040		29		31
4.00%, 06/01/2042		271		287	4.50%, 09/01/2040		33		35
4.00%, 01/01/2044		358		379	4.50%, 10/01/2040		403		436
4.00%, 02/01/2044		259		274	4.50%, 02/01/2041		69		74
4.00%, 02/01/2044		457		484	4.50%, 03/01/2041		96		104
4.00%, 02/01/2044		785		834	4.50%, 03/01/2041		540		585
4.00%, 04/01/2044		1,300		1,375	4.50%, 03/01/2041		911		990
4.00%, 05/01/2044		258		273	4.50%, 03/01/2041		671		727
4.00%, 05/01/2044		178		188	4.50%, 04/01/2041		72		77
4.00%, 07/01/2044		192		203	4.50%, 04/01/2041		129		140
4.00%, 07/01/2044		981		1,038	4.50%, 05/01/2041		145		157
4.00%, 07/01/2044(f)		11,600		12,267	4.50%, 05/01/2041		157		170
4.00%, 07/01/2044		807		854	4.50%, 05/01/2041		47		51
4.00%, 10/01/2044		892		945	4.50%, 06/01/2041		46		50
4.00%, 11/01/2044		1,268		1,342	4.50%, 06/01/2041		84		91
4.00%, 12/01/2044		1,129		1,196	4.50%, 06/01/2041		59		64
4.50%, 05/01/2018		41		43	4.50%, 06/01/2041		71		78
4.50%, 08/01/2018		85		89	4.50%, 07/01/2041		92		100
4.50%, 11/01/2018		20		21	4.50%, 07/01/2041		87		94
4.50%, 04/01/2019		19		19	4.50%, 08/01/2041		68		73
4.50%, 04/01/2023		15		16	4.50%, 09/01/2041		697		752
4.50%, 01/01/2024		22		23	4.50%, 10/01/2041		125		136
4.50%, 01/01/2024		9		10	4.50%, 11/01/2041		644		699
4.50%, 04/01/2024		114		123	4.50%, 03/01/2042		133		144
4.50%, 07/01/2024		20		22	4.50%, 09/01/2043		475		514
4.50%, 09/01/2024		28		30	4.50%, 09/01/2043		90		98
4.50%, 09/01/2024		31		33	4.50%, 10/01/2043		42		46
4.50%, 11/01/2024		195		208	4.50%, 11/01/2043		200		217
4.50%, 04/01/2025		30		32	4.50%, 11/01/2043		36		39
4.50%, 05/01/2025		26		27	4.50%, 11/01/2043		99		108
4.50%, 07/01/2025		38		40	4.50%, 11/01/2043		329		356
4.50%, 09/01/2026		299		316	4.50%, 11/01/2043		193		208
4.50%, 02/01/2030		32		34	4.50%, 01/01/2044		457		494
4.50%, 08/01/2030		24		27	4.50%, 01/01/2044		406		439
4.50%, 05/01/2031		30		33	4.50%, 03/01/2044		200		216
4.50%, 06/01/2031		206		223	4.50%, 03/01/2044		511		552
4.50%, 05/01/2034		1		1	4.50%, 05/01/2044		765		826
4.50%, 08/01/2035		180		194	4.50%, 07/01/2044		300		324
4.50%, 08/01/2035		99		108	4.50%, 07/01/2044		183		198
4.50%, 08/01/2036		29		32	4.50%, 09/01/2044		284		307
4.50%, 02/01/2039		3		3	4.86%, 06/01/2038(a)		8		9
4.50%, 02/01/2039		77		83	5.00%, 05/01/2018		6		6

See accompanying notes.

124

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT	Principal				U.S. GOVERNMENT & GOVERNMENT	Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)					Federal Home Loan Mortgage Corporation (FHLMC)
(continued)					(continued)
5.00%, 08/01/2018	$	12	$	13	5.00%, 04/01/2041	$	52	$	58
5.00%, 10/01/2018		25		26	5.00%, 05/01/2041		14		15
5.00%, 04/01/2019		9		10	5.00%, 06/01/2041		260		287
5.00%, 12/01/2019		25		27	5.00%, 07/01/2041		79		87
5.00%, 12/01/2021		59		62	5.00%, 07/01/2041(f)		200		220
5.00%, 02/01/2022		11		11	5.00%, 09/01/2041		98		108
5.00%, 09/01/2022		13		14	5.00%, 10/01/2041		111		123
5.00%, 06/01/2023		237		258	5.00%, 11/01/2041		333		366
5.00%, 06/01/2023		9		10	5.50%, 10/01/2016		3		3
5.00%, 09/01/2023		443		487	5.50%, 02/01/2017		6		6
5.00%, 12/01/2023		103		112	5.50%, 01/01/2018		3		3
5.00%, 04/01/2024		79		87	5.50%, 01/01/2018		12		12
5.00%, 07/01/2024		13		14	5.50%, 01/01/2022		11		12
5.00%, 06/01/2025		13		13	5.50%, 04/01/2023		36		40
5.00%, 06/01/2026		95		102	5.50%, 01/01/2028		178		199
5.00%, 08/01/2026		135		148	5.50%, 12/01/2032		56		63
5.00%, 12/01/2027		63		69	5.50%, 03/01/2033		5		6
5.00%, 02/01/2030		14		15	5.50%, 12/01/2033		3		3
5.00%, 03/01/2030		10		11	5.50%, 01/01/2034		20		23
5.00%, 07/01/2031		446		491	5.50%, 01/01/2034		108		122
5.00%, 08/01/2033		10		11	5.50%, 02/01/2034		255		286
5.00%, 08/01/2033		77		86	5.50%, 03/01/2034		44		50
5.00%, 09/01/2033		32		36	5.50%, 10/01/2034		17		19
5.00%, 09/01/2033		13		14	5.50%, 10/01/2034		4		5
5.00%, 03/01/2034		18		19	5.50%, 02/01/2035		38		42
5.00%, 04/01/2034		199		220	5.50%, 03/01/2035		26		30
5.00%, 04/01/2034		38		42	5.50%, 05/01/2035		31		35
5.00%, 05/01/2034		52		59	5.50%, 11/01/2035		42		48
5.00%, 05/01/2035		63		70	5.50%, 04/01/2036		544		609
5.00%, 06/01/2035		313		347	5.50%, 05/01/2036		43		48
5.00%, 08/01/2035		20		23	5.50%, 05/01/2036		11		12
5.00%, 08/01/2035		9		10	5.50%, 07/01/2036		42		47
5.00%, 09/01/2035		59		65	5.50%, 07/01/2036		183		205
5.00%, 09/01/2035		22		25	5.50%, 11/01/2036		21		24
5.00%, 10/01/2035		26		28	5.50%, 12/01/2036		343		384
5.00%, 11/01/2035		101		112	5.50%, 12/01/2036		288		322
5.00%, 12/01/2035		59		65	5.50%, 12/01/2036		1		1
5.00%, 12/01/2035		90		100	5.50%, 12/01/2036		7		8
5.00%, 04/01/2036		3		4	5.50%, 01/01/2037		310		349
5.00%, 06/01/2036		11		12	5.50%, 02/01/2037		1		2
5.00%, 08/01/2036		46		51	5.50%, 02/01/2037		185		207
5.00%, 01/01/2037		108		120	5.50%, 07/01/2037		3		3
5.00%, 05/01/2037		11		12	5.50%, 07/01/2037		21		23
5.00%, 01/01/2038		498		548	5.50%, 09/01/2037		12		14
5.00%, 02/01/2038		267		294	5.50%, 11/01/2037		15		17
5.00%, 02/01/2038		24		26	5.50%, 01/01/2038		12		13
5.00%, 03/01/2038		3		4	5.50%, 01/01/2038		67		75
5.00%, 06/01/2038		10		11	5.50%, 04/01/2038		6		7
5.00%, 09/01/2038		19		21	5.50%, 04/01/2038		3		4
5.00%, 09/01/2038		3		4	5.50%, 04/01/2038		50		56
5.00%, 11/01/2038		35		38	5.50%, 05/01/2038		13		14
5.00%, 11/01/2038		604		664	5.50%, 05/01/2038		7		8
5.00%, 12/01/2038		544		598	5.50%, 06/01/2038		3		3
5.00%, 01/01/2039		575		633	5.50%, 06/01/2038		161		181
5.00%, 01/01/2039		52		58	5.50%, 06/01/2038		14		15
5.00%, 02/01/2039		31		34	5.50%, 07/01/2038		5		5
5.00%, 03/01/2039		49		54	5.50%, 07/01/2038		36		40
5.00%, 06/01/2039		12		14	5.50%, 07/01/2038		7		8
5.00%, 07/01/2039		53		59	5.50%, 08/01/2038		51		57
5.00%, 09/01/2039		104		115	5.50%, 09/01/2038		238		266
5.00%, 09/01/2039		842		926	5.50%, 09/01/2038		14		15
5.00%, 10/01/2039		68		76	5.50%, 10/01/2038		8		9
5.00%, 01/01/2040		129		144	5.50%, 10/01/2038		193		216
5.00%, 03/01/2040		21		24	5.50%, 11/01/2038		8		9
5.00%, 07/01/2040		73		81	5.50%, 11/01/2038		2		2
5.00%, 07/01/2040		79		88	5.50%, 12/01/2038		186		208
5.00%, 08/01/2040		63		70	5.50%, 01/01/2039		27		30
5.00%, 08/01/2040		221		245	5.50%, 02/01/2039		340		381
5.00%, 09/01/2040		264		293	5.50%, 03/01/2039		526		589
5.00%, 02/01/2041		1,089		1,208	5.50%, 04/01/2039		35		40
5.00%, 04/01/2041		299		331	5.50%, 09/01/2039		64		72

See accompanying notes.

125

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)         Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)  Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)
					Federal National Mortgage Association (FNMA) (continued)
(continued)					2.00%, 01/01/2029	$	23	$	23
5.50%, 12/01/2039	$	55	$	61
5.50%, 01/01/2040		53		60	2.00%, 05/01/2029		871		866
					2.00%, 05/01/2030		600		592
5.50%, 03/01/2040		8		9	2.17%, 05/01/2043(a)		418		426
5.50%, 06/01/2040		65		73	2.46%, 06/01/2040(a)		23		24
5.50%, 06/01/2041		694		776
6.00%, 05/01/2021		1		1	2.50%, 12/01/2027		22		22
					2.50%, 01/01/2028		360		367
6.00%, 11/01/2022		9		10	2.50%, 02/01/2028		88		89
6.00%, 02/01/2027		24		27
6.00%, 07/01/2029		1		2	2.50%, 06/01/2028		21		22
					2.50%, 06/01/2028		560		570
6.00%, 07/01/2029		5		6	2.50%, 07/01/2028		412		419
6.00%, 02/01/2031		4		5
6.00%, 12/01/2031		4		4	2.50%, 08/01/2028		24		24
					2.50%, 08/01/2028		385		391
6.00%, 01/01/2032		36		41	2.50%, 08/01/2028		180		183
6.00%, 11/01/2033		60		69
6.00%, 06/01/2034		50		56	2.50%, 08/01/2028		413		421
					2.50%, 09/01/2028		169		172
6.00%, 08/01/2034		7		8	2.50%, 09/01/2028		477		486
6.00%, 05/01/2036		32		36
6.00%, 06/01/2036		55		62	2.50%, 10/01/2028		506		515
					2.50%, 05/01/2029		93		94
6.00%, 11/01/2036		53		60	2.50%, 06/01/2029		831		842
6.00%, 12/01/2036		248		281
6.00%, 02/01/2037		5		5	2.50%, 07/01/2029		418		424
					2.50%, 07/01/2029		522		529
6.00%, 03/01/2037		2		3	2.50%, 07/01/2029		306		310
6.00%, 05/01/2037		3		4
6.00%, 10/01/2037		25		28	2.50%, 09/01/2029		89		90
					2.50%, 09/01/2029		557		565
6.00%, 11/01/2037		29		33	2.50%, 12/01/2029		493		499
6.00%, 12/01/2037		6		6
6.00%, 12/01/2037		128		145	2.50%, 12/01/2029		96		97
					2.50%, 12/01/2029		150		152
6.00%, 01/01/2038		8		9	2.50%, 01/01/2030		414		420
6.00%, 01/01/2038		97		110	2.50%, 02/01/2030		195		198
6.00%, 01/01/2038		23		26	2.50%, 07/01/2030(f)		6,625		6,705
6.00%, 01/01/2038(a)		8		9
6.00%, 01/01/2038		28		32	2.50%, 11/01/2032		85		84
					2.50%, 07/01/2033		172		170
6.00%, 01/01/2038		27		31	2.50%, 01/01/2043		815		783
6.00%, 04/01/2038		169		191
6.00%, 05/01/2038		37		42	2.50%, 07/01/2043		297		285
					2.50%, 08/01/2043		193		186
6.00%, 07/01/2038		22		25	2.51%, 07/01/2041		53		56
6.00%, 07/01/2038		12		14	2.61%, 02/01/2042(a)		106		112
6.00%, 08/01/2038		11		12	2.68%, 12/01/2043(a)		121		126
6.00%, 09/01/2038		17		19	2.71%, 11/01/2043(a)		293		302
6.00%, 09/01/2038		12		13	2.82%, 01/01/2042(a)		104		109
6.00%, 12/01/2039		5		6	2.89%, 02/01/2042(a)		62		65
6.50%, 06/01/2017		4		4	2.94%, 05/01/2042(a)		412		426
6.50%, 04/01/2028		1		1
6.50%, 03/01/2029		1		2	3.00%, 09/01/2026		101		105
					3.00%, 11/01/2026		349		363
6.50%, 05/01/2031		4		5	3.00%, 11/01/2026		123		128
6.50%, 06/01/2031		1		1
6.50%, 10/01/2031		1		1	3.00%, 01/01/2027		88		91
					3.00%, 02/01/2027		81		84
6.50%, 05/01/2032		1		1	3.00%, 04/01/2027		145		151
6.50%, 04/01/2035		2		2
6.50%, 03/01/2036		4		5	3.00%, 04/01/2027		134		140
					3.00%, 07/01/2027		402		418
6.50%, 09/01/2036		12		14	3.00%, 08/01/2027		440		456
6.50%, 10/01/2037		29		34
6.50%, 11/01/2037		18		21	3.00%, 10/01/2027		375		390
					3.00%, 10/01/2028		708		733
6.50%, 12/01/2037		2		2	3.00%, 11/01/2028		459		476
6.50%, 02/01/2038		4		5
6.50%, 09/01/2038		17		20	3.00%, 12/01/2028		73		75
					3.00%, 12/01/2028		55		57
6.50%, 10/01/2038		7		9	3.00%, 02/01/2029		368		381
6.50%, 01/01/2039		10		12
6.50%, 09/01/2039		27		31	3.00%, 03/01/2029		286		297
					3.00%, 03/01/2029		639		663
7.00%, 10/01/2029		1		1	3.00%, 04/01/2029		87		90
7.00%, 09/01/2031		7		8
7.00%, 09/01/2038		6		7	3.00%, 04/01/2029		448		465
					3.00%, 05/01/2029		96		100
7.50%, 07/01/2029		24		29	3.00%, 05/01/2029		177		184
7.50%, 10/01/2030		2		2	3.00%, 05/01/2029		289		300
		$		145,022	3.00%, 06/01/2029		193		200
					3.00%, 07/01/2029(f)		3,150		3,263
Federal National Mortgage Association (FNMA) - 12.91%
2.00%, 08/01/2028		227		226	3.00%, 07/01/2029		212		219
2.00%, 09/01/2028		326		324	3.00%, 08/01/2029		408		423
2.00%, 11/01/2028		65		65	3.00%, 08/01/2029		386		400
					3.00%, 08/01/2029		40		41

See accompanying notes.

126

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)  Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
3.00%, 08/01/2029	$	459	$	476	3.50%, 12/01/2025	$	172	$	181
3.00%, 10/01/2029		278		288	3.50%, 12/01/2025		54		57
3.00%, 10/01/2029		274		284	3.50%, 12/01/2025		33		35
3.00%, 10/01/2029		441		458	3.50%, 01/01/2026		841		889
3.00%, 11/01/2029		164		170	3.50%, 01/01/2026		39		41
3.00%, 01/01/2030		1,138		1,180	3.50%, 01/01/2026		104		110
3.00%, 08/01/2032		567		578	3.50%, 02/01/2026		68		72
3.00%, 10/01/2032		605		617	3.50%, 03/01/2026		11		11
3.00%, 08/01/2033		1,373		1,400	3.50%, 03/01/2026		773		817
3.00%, 12/01/2033		622		634	3.50%, 05/01/2026		16		17
3.00%, 10/01/2034		179		182	3.50%, 06/01/2026		80		85
3.00%, 11/01/2034		182		186	3.50%, 07/01/2026		12		12
3.00%, 02/01/2035		486		495	3.50%, 08/01/2026		10		11
3.00%, 04/01/2035		198		201	3.50%, 08/01/2026		122		129
3.00%, 04/01/2042		365		365	3.50%, 09/01/2026		514		544
3.00%, 09/01/2042		186		186	3.50%, 10/01/2026		43		45
3.00%, 12/01/2042		184		184	3.50%, 12/01/2026		152		160
3.00%, 02/01/2043		785		786	3.50%, 12/01/2026		578		612
3.00%, 02/01/2043		802		803	3.50%, 01/01/2027		96		101
3.00%, 04/01/2043		507		507	3.50%, 01/01/2027		168		178
3.00%, 04/01/2043		605		605	3.50%, 02/01/2027		374		396
3.00%, 04/01/2043		678		679	3.50%, 11/01/2028		527		556
3.00%, 04/01/2043		621		622	3.50%, 12/01/2028		289		305
3.00%, 04/01/2043		796		797	3.50%, 03/01/2029		477		503
3.00%, 04/01/2043		448		449	3.50%, 03/01/2029		28		30
3.00%, 04/01/2043		1,762		1,764	3.50%, 07/01/2029(f)		325		343
3.00%, 04/01/2043		791		792	3.50%, 01/01/2031		19		19
3.00%, 05/01/2043		610		610	3.50%, 04/01/2031		38		39
3.00%, 05/01/2043		98		99	3.50%, 04/01/2032		157		164
3.00%, 05/01/2043		508		508	3.50%, 05/01/2032		341		356
3.00%, 05/01/2043		898		899	3.50%, 06/01/2032		558		583
3.00%, 06/01/2043		41		41	3.50%, 07/01/2032		217		227
3.00%, 06/01/2043		32		32	3.50%, 09/01/2032		341		357
3.00%, 06/01/2043		819		820	3.50%, 09/01/2033		160		168
3.00%, 06/01/2043		825		825	3.50%, 10/01/2033		324		339
3.00%, 06/01/2043		615		615	3.50%, 11/01/2033		329		344
3.00%, 07/01/2043		455		455	3.50%, 01/01/2034		249		261
3.00%, 07/01/2043		250		250	3.50%, 06/01/2034		461		482
3.00%, 07/01/2043		54		54	3.50%, 08/01/2034		125		131
3.00%, 07/01/2043		271		271	3.50%, 10/01/2040		16		17
3.00%, 07/01/2043		422		422	3.50%, 11/01/2040		62		65
3.00%, 07/01/2043		675		676	3.50%, 12/01/2040		70		72
3.00%, 08/01/2043		482		483	3.50%, 01/01/2041		46		48
3.00%, 08/01/2043		920		921	3.50%, 02/01/2041(a)		41		43
3.00%, 08/01/2043		183		183	3.50%, 02/01/2041		30		31
3.00%, 08/01/2043		740		740	3.50%, 02/01/2041		27		28
3.00%, 08/01/2043		284		284	3.50%, 03/01/2041		105		109
3.00%, 08/01/2043		1,361		1,362	3.50%, 03/01/2041		159		165
3.00%, 08/01/2043		109		109	3.50%, 10/01/2041		280		290
3.00%, 08/01/2043		389		390	3.50%, 12/01/2041		286		295
3.00%, 09/01/2043		1,117		1,117	3.50%, 12/01/2041		878		907
3.00%, 09/01/2043		23		23	3.50%, 12/01/2041		830		858
3.00%, 09/01/2043		470		470	3.50%, 01/01/2042		159		164
3.00%, 09/01/2043		32		32	3.50%, 01/01/2042		154		159
3.00%, 09/01/2043		23		23	3.50%, 01/01/2042		296		306
3.00%, 10/01/2043		251		251	3.50%, 02/01/2042		39		41
3.00%, 11/01/2043		179		179	3.50%, 02/01/2042		67		70
3.00%, 11/01/2043		277		277	3.50%, 03/01/2042		197		204
3.00%, 11/01/2043		174		174	3.50%, 03/01/2042		92		95
3.00%, 01/01/2044		192		192	3.50%, 03/01/2042		74		76
3.00%, 07/01/2044(f)		14,575		14,521	3.50%, 03/01/2042		612		633
3.00%, 08/01/2045(f)		700		696	3.50%, 03/01/2042		350		362
3.03%, 12/01/2041(a)		53		56	3.50%, 03/01/2042		170		176
3.16%, 12/01/2040(a)		36		38	3.50%, 04/01/2042		171		177
3.42%, 01/01/2040(a)		46		48	3.50%, 04/01/2042		125		129
3.50%, 03/01/2020		52		55	3.50%, 04/01/2042		160		165
3.50%, 01/01/2021		200		211	3.50%, 04/01/2042		131		136
3.50%, 05/01/2021		184		194	3.50%, 05/01/2042		196		203
3.50%, 08/01/2025		33		35	3.50%, 07/01/2042		381		394
3.50%, 10/01/2025		25		27	3.50%, 07/01/2042		214		221
3.50%, 11/01/2025		30		31	3.50%, 08/01/2042		267		276

See accompanying notes.

127

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)      Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)   Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
3.50%, 09/01/2042	$	210	$	217	4.00%, 04/01/2029	$	11	$	12
3.50%, 09/01/2042		98		102	4.00%, 10/01/2030		33		36
3.50%, 10/01/2042		26		27	4.00%, 12/01/2030		272		290
3.50%, 10/01/2042		764		789	4.00%, 02/01/2031		92		99
3.50%, 04/01/2043		340		351	4.00%, 07/01/2031		57		61
3.50%, 04/01/2043		182		188	4.00%, 10/01/2031		226		242
3.50%, 05/01/2043		1,113		1,150	4.00%, 11/01/2031		53		57
3.50%, 05/01/2043		895		925	4.00%, 12/01/2031		44		47
3.50%, 05/01/2043		481		498	4.00%, 01/01/2032		68		73
3.50%, 06/01/2043		537		555	4.00%, 09/01/2033		452		483
3.50%, 06/01/2043		925		956	4.00%, 03/01/2039		18		19
3.50%, 07/01/2043		507		524	4.00%, 08/01/2039		9		10
3.50%, 08/01/2043		270		278	4.00%, 08/01/2039		60		64
3.50%, 09/01/2043		346		358	4.00%, 10/01/2039		20		21
3.50%, 09/01/2043		930		960	4.00%, 10/01/2039		575		610
3.50%, 12/01/2043		297		306	4.00%, 11/01/2039		66		70
3.50%, 01/01/2044		88		91	4.00%, 12/01/2039		24		25
3.50%, 02/01/2044		466		481	4.00%, 02/01/2040		69		74
3.50%, 02/01/2044		839		866	4.00%, 05/01/2040		8		8
3.50%, 04/01/2044		86		89	4.00%, 05/01/2040		52		56
3.50%, 10/01/2044		85		88	4.00%, 08/01/2040		36		39
3.50%, 10/01/2044		453		468	4.00%, 10/01/2040		63		68
3.50%, 10/01/2044		283		292	4.00%, 10/01/2040		40		43
3.50%, 12/01/2044		1,129		1,164	4.00%, 10/01/2040		23		25
3.50%, 12/01/2044		1,141		1,177	4.00%, 10/01/2040		37		39
3.50%, 07/01/2045(f)		26,800		27,619	4.00%, 10/01/2040		115		122
3.50%, 08/01/2045(f)		1,750		1,799	4.00%, 10/01/2040		19		20
3.52%, 05/01/2041(a)		38		41	4.00%, 10/01/2040		63		67
3.55%, 08/01/2040(a)		26		27	4.00%, 11/01/2040		29		30
3.62%, 05/01/2041(a)		33		34	4.00%, 12/01/2040		75		80
4.00%, 08/01/2018		398		417	4.00%, 12/01/2040		128		137
4.00%, 09/01/2018		50		53	4.00%, 12/01/2040		32		34
4.00%, 09/01/2018		141		148	4.00%, 12/01/2040		87		93
4.00%, 09/01/2018		64		67	4.00%, 12/01/2040		115		123
4.00%, 05/01/2019		156		163	4.00%, 01/01/2041		55		59
4.00%, 07/01/2019		23		24	4.00%, 01/01/2041		91		97
4.00%, 03/01/2024		120		127	4.00%, 01/01/2041		789		840
4.00%, 05/01/2024		27		28	4.00%, 01/01/2041		146		156
4.00%, 05/01/2024		21		22	4.00%, 02/01/2041		133		142
4.00%, 06/01/2024		47		49	4.00%, 02/01/2041		89		95
4.00%, 07/01/2024		42		45	4.00%, 02/01/2041		230		245
4.00%, 09/01/2024		20		21	4.00%, 02/01/2041		127		135
4.00%, 10/01/2024		169		178	4.00%, 02/01/2041		70		75
4.00%, 11/01/2024		9		9	4.00%, 03/01/2041		663		706
4.00%, 01/01/2025		32		34	4.00%, 03/01/2041		55		58
4.00%, 03/01/2025		33		35	4.00%, 03/01/2041		132		140
4.00%, 04/01/2025		177		187	4.00%, 04/01/2041		12		13
4.00%, 04/01/2025		12		12	4.00%, 07/01/2041(f)		28,350		30,036
4.00%, 05/01/2025		6		7	4.00%, 09/01/2041		224		238
4.00%, 05/01/2025		10		11	4.00%, 09/01/2041		37		40
4.00%, 05/01/2025		36		39	4.00%, 09/01/2041		287		305
4.00%, 05/01/2025		33		35	4.00%, 10/01/2041		119		127
4.00%, 05/01/2025		32		34	4.00%, 10/01/2041		237		253
4.00%, 06/01/2025		29		31	4.00%, 10/01/2041		21		22
4.00%, 06/01/2025		11		12	4.00%, 11/01/2041		97		103
4.00%, 07/01/2025		75		80	4.00%, 11/01/2041		41		43
4.00%, 08/01/2025		37		39	4.00%, 11/01/2041		128		136
4.00%, 09/01/2025		38		40	4.00%, 11/01/2041		185		197
4.00%, 11/01/2025		48		52	4.00%, 12/01/2041		122		130
4.00%, 12/01/2025		59		63	4.00%, 12/01/2041		174		186
4.00%, 01/01/2026		151		159	4.00%, 12/01/2041		117		125
4.00%, 01/01/2026		279		292	4.00%, 12/01/2041		124		132
4.00%, 01/01/2026		27		29	4.00%, 12/01/2041		334		355
4.00%, 03/01/2026		79		85	4.00%, 01/01/2042		39		42
4.00%, 03/01/2026		6		7	4.00%, 01/01/2042		157		167
4.00%, 03/01/2026		147		157	4.00%, 01/01/2042		128		136
4.00%, 05/01/2026		41		43	4.00%, 02/01/2042		89		94
4.00%, 06/01/2026		43		46	4.00%, 05/01/2042		821		873
4.00%, 07/01/2026		43		46	4.00%, 02/01/2043		309		329
4.00%, 08/01/2026		202		216	4.00%, 02/01/2043		213		226
4.00%, 09/01/2026		90		97	4.00%, 08/01/2043		250		265

See accompanying notes.

128

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)  Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
4.00%, 09/01/2043	$	185	$	196	4.50%, 07/01/2039	$	51	$	55
4.00%, 12/01/2043		373		395	4.50%, 07/01/2039		80		87
4.00%, 01/01/2044		899		957	4.50%, 07/01/2039		96		105
4.00%, 02/01/2044		86		91	4.50%, 08/01/2039		52		57
4.00%, 06/01/2044		904		962	4.50%, 09/01/2039		50		54
4.00%, 06/01/2044		665		705	4.50%, 10/01/2039		149		161
4.00%, 07/01/2044		953		1,009	4.50%, 10/01/2039		93		100
4.00%, 09/01/2044		478		507	4.50%, 10/01/2039		25		27
4.00%, 10/01/2044		366		387	4.50%, 12/01/2039		42		45
4.00%, 11/01/2044		199		211	4.50%, 12/01/2039		62		68
4.00%, 12/01/2044		188		199	4.50%, 12/01/2039		99		108
4.00%, 12/01/2044		1,032		1,095	4.50%, 12/01/2039		32		35
4.00%, 12/01/2044		142		150	4.50%, 12/01/2039		140		153
4.00%, 12/01/2044		200		212	4.50%, 01/01/2040		183		198
4.00%, 01/01/2045		25		27	4.50%, 01/01/2040		125		137
4.00%, 01/01/2045		500		530	4.50%, 02/01/2040		91		99
4.00%, 02/01/2045		497		528	4.50%, 02/01/2040		53		58
4.00%, 02/01/2045		458		486	4.50%, 03/01/2040		58		63
4.50%, 02/01/2018		22		23	4.50%, 04/01/2040		98		106
4.50%, 05/01/2018		361		376	4.50%, 05/01/2040		53		58
4.50%, 07/01/2018		14		15	4.50%, 05/01/2040		233		254
4.50%, 08/01/2018		252		263	4.50%, 05/01/2040		153		165
4.50%, 09/01/2018		317		330	4.50%, 05/01/2040		59		64
4.50%, 12/01/2018		238		248	4.50%, 06/01/2040		44		48
4.50%, 01/01/2019		2		2	4.50%, 07/01/2040		3		3
4.50%, 03/01/2019		76		80	4.50%, 07/01/2040		54		59
4.50%, 03/01/2019		107		112	4.50%, 08/01/2040		260		281
4.50%, 04/01/2019		204		213	4.50%, 08/01/2040		443		480
4.50%, 05/01/2019		46		48	4.50%, 08/01/2040		136		147
4.50%, 08/01/2019		4		4	4.50%, 08/01/2040		76		82
4.50%, 09/01/2020		8		8	4.50%, 09/01/2040		33		35
4.50%, 05/01/2022		23		24	4.50%, 09/01/2040		53		57
4.50%, 02/01/2024		6		6	4.50%, 09/01/2040		40		43
4.50%, 04/01/2024		2		2	4.50%, 10/01/2040		195		212
4.50%, 04/01/2024		4		4	4.50%, 12/01/2040		856		932
4.50%, 11/01/2024		17		18	4.50%, 12/01/2040		38		41
4.50%, 12/01/2024		22		24	4.50%, 03/01/2041		56		60
4.50%, 12/01/2024		42		45	4.50%, 03/01/2041		84		91
4.50%, 02/01/2025		34		36	4.50%, 03/01/2041		277		300
4.50%, 02/01/2025		54		58	4.50%, 03/01/2041		74		81
4.50%, 04/01/2025		7		7	4.50%, 04/01/2041		65		71
4.50%, 05/01/2025		49		53	4.50%, 05/01/2041		140		152
4.50%, 04/01/2026		71		76	4.50%, 05/01/2041		85		92
4.50%, 07/01/2029		5		6	4.50%, 05/01/2041		271		294
4.50%, 02/01/2030		30		32	4.50%, 06/01/2041		154		167
4.50%, 04/01/2030		10		11	4.50%, 06/01/2041		263		285
4.50%, 08/01/2030		205		223	4.50%, 06/01/2041		82		89
4.50%, 09/01/2030		168		183	4.50%, 06/01/2041		193		209
4.50%, 01/01/2031		34		37	4.50%, 06/01/2041		50		54
4.50%, 04/01/2031		19		21	4.50%, 07/01/2041		101		109
4.50%, 05/01/2031		30		32	4.50%, 07/01/2041		65		71
4.50%, 07/01/2031		121		132	4.50%, 07/01/2041(f)		6,600		7,135
4.50%, 08/01/2031		63		69	4.50%, 07/01/2041		62		67
4.50%, 08/01/2033		35		38	4.50%, 08/01/2041		98		106
4.50%, 08/01/2033		3		3	4.50%, 09/01/2041		98		106
4.50%, 11/01/2033		79		86	4.50%, 09/01/2041		450		488
4.50%, 02/01/2035		260		282	4.50%, 09/01/2041		144		156
4.50%, 12/01/2035		222		241	4.50%, 10/01/2041		103		112
4.50%, 01/01/2036		3		3	4.50%, 11/01/2041		102		111
4.50%, 03/01/2036		8		9	4.50%, 11/01/2041		122		132
4.50%, 04/01/2038		80		86	4.50%, 11/01/2041		103		112
4.50%, 06/01/2038		45		49	4.50%, 12/01/2041		127		138
4.50%, 01/01/2039		10		11	4.50%, 04/01/2042		45		49
4.50%, 02/01/2039		24		26	4.50%, 09/01/2042		193		210
4.50%, 04/01/2039		83		91	4.50%, 09/01/2043		915		989
4.50%, 04/01/2039		94		103	4.50%, 09/01/2043		384		416
4.50%, 04/01/2039		18		20	4.50%, 09/01/2043		461		500
4.50%, 06/01/2039		130		142	4.50%, 10/01/2043		1,193		1,290
4.50%, 06/01/2039		27		30	4.50%, 12/01/2043		300		325
4.50%, 06/01/2039		45		49	4.50%, 12/01/2043		40		44
4.50%, 06/01/2039		108		116	4.50%, 03/01/2044		663		716

See accompanying notes.

129

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)   Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
4.50%, 04/01/2044	$	222	$	240	5.00%, 06/01/2039	$	169	$	187
4.50%, 04/01/2044		75		81	5.00%, 07/01/2039		349		385
4.50%, 05/01/2044		571		617	5.00%, 07/01/2039		79		88
4.50%, 05/01/2044		365		396	5.00%, 10/01/2039		66		73
4.50%, 06/01/2044		923		1,000	5.00%, 12/01/2039		52		58
4.50%, 07/01/2044		451		489	5.00%, 12/01/2039		131		145
4.50%, 10/01/2044		38		41	5.00%, 01/01/2040		108		121
5.00%, 12/01/2017		3		3	5.00%, 02/01/2040		134		152
5.00%, 03/01/2018		222		232	5.00%, 05/01/2040		39		43
5.00%, 11/01/2018		3		4	5.00%, 05/01/2040		321		355
5.00%, 06/01/2019		28		30	5.00%, 06/01/2040		22		24
5.00%, 07/01/2019		133		139	5.00%, 06/01/2040		94		103
5.00%, 11/01/2020		154		166	5.00%, 06/01/2040		99		110
5.00%, 11/01/2021		12		13	5.00%, 08/01/2040		162		179
5.00%, 02/01/2023		20		21	5.00%, 08/01/2040		53		58
5.00%, 07/01/2023		2		2	5.00%, 08/01/2040		38		42
5.00%, 09/01/2023		102		110	5.00%, 09/01/2040		17		19
5.00%, 12/01/2023		7		7	5.00%, 11/01/2040		60		66
5.00%, 12/01/2023		16		17	5.00%, 04/01/2041		47		52
5.00%, 01/01/2024		27		29	5.00%, 05/01/2041		65		72
5.00%, 01/01/2024		38		40	5.00%, 05/01/2041		25		28
5.00%, 02/01/2024		178		192	5.00%, 05/01/2041		58		65
5.00%, 07/01/2024		13		15	5.00%, 05/01/2041		63		70
5.00%, 12/01/2024		84		91	5.00%, 07/01/2041(f)		2,400		2,651
5.00%, 11/01/2025		1,141		1,259	5.00%, 07/01/2041		500		553
5.00%, 10/01/2026		298		330	5.00%, 07/01/2041		13		15
5.00%, 04/01/2029		22		24	5.00%, 09/01/2043		899		992
5.00%, 03/01/2030		42		46	5.00%, 12/01/2043		759		838
5.00%, 08/01/2030		52		58	5.00%, 01/01/2044		184		203
5.00%, 05/01/2033		24		27	5.00%, 03/01/2044		838		926
5.00%, 05/01/2033		16		18	5.00%, 11/01/2044		783		865
5.00%, 07/01/2033		118		131	5.50%, 10/01/2016		13		13
5.00%, 08/01/2033		6		6	5.50%, 01/01/2017		15		15
5.00%, 09/01/2033		52		58	5.50%, 02/01/2018		31		32
5.00%, 11/01/2033		70		78	5.50%, 12/01/2018		27		29
5.00%, 02/01/2034		9		10	5.50%, 05/01/2019		4		4
5.00%, 03/01/2034		12		13	5.50%, 08/01/2019		35		37
5.00%, 05/01/2034		92		102	5.50%, 12/01/2019		11		11
5.00%, 02/01/2035		83		93	5.50%, 01/01/2021		5		5
5.00%, 03/01/2035		11		13	5.50%, 05/01/2021		8		9
5.00%, 04/01/2035		12		14	5.50%, 10/01/2021		6		6
5.00%, 06/01/2035		160		177	5.50%, 11/01/2022		21		23
5.00%, 07/01/2035		21		24	5.50%, 11/01/2022		11		12
5.00%, 07/01/2035		8		8	5.50%, 02/01/2023		14		15
5.00%, 07/01/2035		352		389	5.50%, 03/01/2023		18		19
5.00%, 07/01/2035		211		234	5.50%, 04/01/2023		41		44
5.00%, 07/01/2035		74		82	5.50%, 07/01/2023		14		15
5.00%, 09/01/2035		13		14	5.50%, 09/01/2023		16		18
5.00%, 10/01/2035		36		40	5.50%, 12/01/2023		8		9
5.00%, 01/01/2036		69		76	5.50%, 05/01/2025		28		29
5.00%, 03/01/2036		44		48	5.50%, 07/01/2025		429		482
5.00%, 03/01/2036		69		76	5.50%, 06/01/2028		14		15
5.00%, 04/01/2036		3		3	5.50%, 09/01/2028		4		4
5.00%, 05/01/2036		1		1	5.50%, 01/01/2029		8		9
5.00%, 06/01/2036		132		146	5.50%, 12/01/2029		35		40
5.00%, 07/01/2036		88		97	5.50%, 06/01/2033		18		21
5.00%, 04/01/2037		838		925	5.50%, 04/01/2034		90		101
5.00%, 07/01/2037		25		27	5.50%, 04/01/2034		63		70
5.00%, 02/01/2038		174		193	5.50%, 04/01/2034		47		53
5.00%, 04/01/2038		69		77	5.50%, 05/01/2034		56		63
5.00%, 05/01/2038		4		4	5.50%, 06/01/2034		3		3
5.00%, 06/01/2038		8		8	5.50%, 11/01/2034		48		54
5.00%, 12/01/2038		14		15	5.50%, 01/01/2035		11		13
5.00%, 01/01/2039		836		922	5.50%, 01/01/2035		50		56
5.00%, 01/01/2039		49		55	5.50%, 03/01/2035		21		23
5.00%, 02/01/2039		69		77	5.50%, 04/01/2035		2		2
5.00%, 03/01/2039		3		3	5.50%, 04/01/2035		30		33
5.00%, 03/01/2039		33		36	5.50%, 08/01/2035		13		14
5.00%, 04/01/2039		30		33	5.50%, 09/01/2035		4		4
5.00%, 04/01/2039		76		85	5.50%, 10/01/2035		5		6
5.00%, 04/01/2039		53		59	5.50%, 10/01/2035		6		7

See accompanying notes.

130

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's)  Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
5.50%, 11/01/2035	$	390	$	440	5.50%, 09/01/2041	$	106	$	118
5.50%, 12/01/2035		18		20	5.59%, 01/01/2036(a)		7		8
5.50%, 01/01/2036		7		8	6.00%, 06/01/2017		2		2
5.50%, 02/01/2036		65		73	6.00%, 06/01/2017		15		16
5.50%, 04/01/2036		56		63	6.00%, 05/01/2024		2		2
5.50%, 04/01/2036		3		3	6.00%, 12/01/2032		28		33
5.50%, 05/01/2036		255		286	6.00%, 01/01/2033		5		6
5.50%, 07/01/2036		30		34	6.00%, 10/01/2033		9		10
5.50%, 08/01/2036		74		83	6.00%, 12/01/2033		20		23
5.50%, 09/01/2036		83		93	6.00%, 10/01/2034		32		36
5.50%, 09/01/2036		34		38	6.00%, 12/01/2034		14		16
5.50%, 10/01/2036		71		80	6.00%, 01/01/2035		63		72
5.50%, 11/01/2036		29		32	6.00%, 07/01/2035		139		159
5.50%, 11/01/2036		12		13	6.00%, 07/01/2035		55		63
5.50%, 11/01/2036		20		23	6.00%, 10/01/2035		50		57
5.50%, 01/01/2037		29		32	6.00%, 05/01/2036		7		8
5.50%, 02/01/2037		61		69	6.00%, 05/01/2036		4		4
5.50%, 03/01/2037		180		202	6.00%, 05/01/2036		1		2
5.50%, 05/01/2037		269		305	6.00%, 06/01/2036		35		39
5.50%, 05/01/2037		25		28	6.00%, 02/01/2037		49		55
5.50%, 05/01/2037		2		3	6.00%, 02/01/2037		7		7
5.50%, 05/01/2037		857		961	6.00%, 03/01/2037		93		106
5.50%, 06/01/2037		66		74	6.00%, 03/01/2037		36		40
5.50%, 07/01/2037		5		6	6.00%, 06/01/2037		19		21
5.50%, 07/01/2037		8		9	6.00%, 07/01/2037		7		8
5.50%, 08/01/2037		384		432	6.00%, 09/01/2037		48		54
5.50%, 08/01/2037		289		325	6.00%, 10/01/2037		7		8
5.50%, 08/01/2037		284		320	6.00%, 11/01/2037		5		6
5.50%, 01/01/2038		8		9	6.00%, 11/01/2037		1		1
5.50%, 01/01/2038		12		14	6.00%, 11/01/2037		7		8
5.50%, 02/01/2038		32		36	6.00%, 12/01/2037		17		19
5.50%, 02/01/2038		77		87	6.00%, 01/01/2038		270		306
5.50%, 02/01/2038		50		56	6.00%, 01/01/2038		14		16
5.50%, 03/01/2038		21		23	6.00%, 01/01/2038		22		26
5.50%, 03/01/2038		33		37	6.00%, 02/01/2038		9		10
5.50%, 03/01/2038		21		23	6.00%, 03/01/2038		124		141
5.50%, 03/01/2038		132		148	6.00%, 03/01/2038		18		21
5.50%, 05/01/2038		712		798	6.00%, 05/01/2038		11		12
5.50%, 05/01/2038		12		13	6.00%, 05/01/2038		14		16
5.50%, 05/01/2038		47		53	6.00%, 08/01/2038		22		25
5.50%, 06/01/2038		3		3	6.00%, 09/01/2038		77		87
5.50%, 06/01/2038		4		5	6.00%, 10/01/2038		46		52
5.50%, 06/01/2038		29		32	6.00%, 11/01/2038		118		134
5.50%, 06/01/2038		277		310	6.00%, 12/01/2038		9		10
5.50%, 06/01/2038		373		418	6.00%, 10/01/2039		26		29
5.50%, 07/01/2038		17		19	6.00%, 10/01/2039		24		28
5.50%, 07/01/2038		25		29	6.00%, 04/01/2040		55		62
5.50%, 08/01/2038		314		352	6.00%, 09/01/2040		16		18
5.50%, 09/01/2038		3		3	6.00%, 10/01/2040		61		69
5.50%, 11/01/2038		7		8	6.00%, 10/01/2040		27		31
5.50%, 11/01/2038		16		18	6.00%, 05/01/2041		568		646
5.50%, 11/01/2038		15		17	6.50%, 12/01/2016		9		9
5.50%, 11/01/2038		11		12	6.50%, 07/01/2020		2		2
5.50%, 11/01/2038		159		179	6.50%, 03/01/2026		1		1
5.50%, 11/01/2038		268		300	6.50%, 12/01/2031		2		2
5.50%, 12/01/2038		28		31	6.50%, 03/01/2032		3		3
5.50%, 12/01/2038		23		25	6.50%, 07/01/2032		9		11
5.50%, 12/01/2038		11		13	6.50%, 11/01/2033		13		15
5.50%, 01/01/2039		28		31	6.50%, 08/01/2034		30		34
5.50%, 04/01/2039		15		17	6.50%, 09/01/2034		24		28
5.50%, 06/01/2039		327		367	6.50%, 10/01/2034		8		9
5.50%, 07/01/2039		73		82	6.50%, 07/01/2037		11		13
5.50%, 09/01/2039		53		60	6.50%, 07/01/2037		14		17
5.50%, 10/01/2039		18		20	6.50%, 08/01/2037		10		11
5.50%, 12/01/2039		100		114	6.50%, 10/01/2037		91		105
5.50%, 12/01/2039		37		42	6.50%, 01/01/2038		21		24
5.50%, 05/01/2040		189		212	6.50%, 01/01/2038		281		324
5.50%, 06/01/2040		13		14	6.50%, 02/01/2038		11		13
5.50%, 07/01/2040		43		48
5.50%, 07/01/2041		271		304
5.50%, 09/01/2041		77		87

See accompanying notes.

131

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
						U.S. GOVERNMENT & GOVERNMENT	Principal
U.S. GOVERNMENT & GOVERNMENT			Principal			AGENCY OBLIGATIONS (continued)	Amount (000's)   Value (000's)
AGENCY OBLIGATIONS (continued)		Amount (000's)        Value (000's)				Government National Mortgage Association (GNMA)
						(continued)
Federal National Mortgage Association (FNMA) (continued)						3.50%, 11/15/2041	$	73	$	76
6.50%, 02/01/2038		$	13	$	15	3.50%, 11/20/2041		30		31
6.50%, 03/01/2038			5		6	3.50%, 01/15/2042		83		86
6.50%, 03/01/2038			65		77	3.50%, 01/20/2042		140		145
6.50%, 05/01/2038			22		25	3.50%, 02/15/2042		148		154
6.50%, 05/01/2038			151		174	3.50%, 02/15/2042		451		471
6.50%, 09/01/2038			10		11	3.50%, 02/20/2042		134		140
6.50%, 10/01/2039			18		21	3.50%, 03/15/2042		96		99
7.00%, 12/01/2037			23		25	3.50%, 03/15/2042		123		128
7.00%, 12/01/2037			22		27	3.50%, 03/20/2042		155		161
7.50%, 05/01/2031			13		16	3.50%, 04/15/2042		269		280
			$		245,108	3.50%, 04/20/2042		313		326
Government National Mortgage Association (GNMA) -						3.50%, 05/15/2042		192		199
7.62	%					3.50%, 05/20/2042		1,094		1,139
2.00%, 06/20/2043(a)			120		124
						3.50%, 06/20/2042		654		681
2.50%, 09/20/2027			284		291	3.50%, 08/15/2042		185		192
2.50%, 04/20/2028			248		254	3.50%, 08/20/2042		490		510
2.50%, 07/20/2028			242		248	3.50%, 01/15/2043		495		516
2.50%, 02/20/2042(a)			102		106
2.50%, 01/20/2043(a)			142		147	3.50%, 01/15/2043		796		829
						3.50%, 01/20/2043		724		754
2.50%, 03/15/2043			274		264	3.50%, 02/20/2043		795		828
2.50%, 07/20/2043			363		350	3.50%, 03/20/2043		722		752
2.50%, 11/20/2043(a)			541		556
						3.50%, 04/15/2043		185		193
2.50%, 07/01/2044			200		193	3.50%, 04/20/2043		745		775
3.00%, 04/15/2027			153		161	3.50%, 06/15/2043		89		93
3.00%, 04/20/2027			263		275	3.50%, 06/15/2043		160		166
3.00%, 09/20/2027			264		276	3.50%, 08/15/2043		298		310
3.00%, 11/20/2027			136		142	3.50%, 01/20/2044		20		21
3.00%, 09/20/2028			158		165	3.50%, 02/20/2044		166		172
3.00%, 10/20/2028			238		250	3.50%, 04/20/2044		755		785
3.00%, 01/20/2029			78		82	3.50%, 07/01/2044		21,550		22,366
3.00%, 11/20/2041(a)			127		131	3.50%, 07/01/2044(f)		500		519
3.00%, 02/20/2042(a)			106		111
						3.50%, 07/20/2044		2,013		2,093
3.00%, 04/15/2042			32		33	3.50%, 08/20/2044		2,064		2,146
3.00%, 04/20/2042(a)			321		333
3.00%, 07/20/2042(a)			467		486	3.50%, 09/20/2044		763		793
						3.50%, 10/20/2044		874		909
3.00%, 09/20/2042			393		400	3.50%, 11/20/2044		973		1,015
3.00%, 10/15/2042			603		611	3.50%, 12/20/2044		1,126		1,175
3.00%, 12/20/2042			782		795	3.50%, 08/01/2045		1,425		1,472
3.00%, 03/20/2043			1,472		1,496	4.00%, 07/15/2024		123		130
3.00%, 03/20/2043			431		436	4.00%, 08/15/2024		31		34
3.00%, 04/15/2043			90		92	4.00%, 12/15/2024		29		31
3.00%, 05/15/2043			70		70	4.00%, 11/15/2025		19		21
3.00%, 05/15/2043			33		34	4.00%, 05/15/2026		28		30
3.00%, 06/15/2043			718		728	4.00%, 06/15/2039		16		17
3.00%, 06/20/2043			429		435	4.00%, 07/20/2040		65		69
3.00%, 08/15/2043			629		637	4.00%, 08/15/2040		52		55
3.00%, 08/15/2043			444		449	4.00%, 08/15/2040		126		135
3.00%, 08/20/2043			194		197	4.00%, 09/15/2040		52		55
3.00%, 09/20/2043			706		717	4.00%, 09/15/2040		10		11
3.00%, 10/20/2043			351		356	4.00%, 09/15/2040		89		96
3.00%, 11/20/2043			260		265	4.00%, 10/15/2040		79		84
3.00%, 03/20/2044			563		572	4.00%, 11/15/2040		11		12
3.00%, 05/15/2044			57		58	4.00%, 11/15/2040		63		67
3.00%, 07/01/2044(f)			400		404
						4.00%, 11/20/2040		49		53
3.00%, 07/01/2044			12,225		12,341	4.00%, 12/20/2040		82		87
3.00%, 08/20/2044			2,271		2,307	4.00%, 01/15/2041		82		87
3.00%, 11/15/2044			920		932	4.00%, 01/15/2041		56		60
3.00%, 12/20/2044			1,155		1,168	4.00%, 01/15/2041		171		182
3.00%, 04/20/2045			100		101	4.00%, 01/20/2041		156		167
3.00%, 05/20/2045			898		908	4.00%, 05/15/2041		59		63
3.00%, 08/01/2045			875		879	4.00%, 05/15/2041		97		104
3.50%, 12/15/2025			20		21	4.00%, 07/20/2041(a)		36		37
3.50%, 02/15/2026			71		75	4.00%, 07/20/2041		56		60
3.50%, 05/15/2026			28		30	4.00%, 08/15/2041		202		215
3.50%, 03/20/2027			67		71	4.00%, 08/15/2041		88		94
3.50%, 04/20/2027			106		112	4.00%, 08/15/2041		42		45
3.50%, 09/20/2028			211		223	4.00%, 09/15/2041		141		151
3.50%, 07/20/2040			22		23	4.00%, 09/15/2041		63		68
3.50%, 01/20/2041			99		103	4.00%, 09/15/2041		163		174
3.50%, 03/20/2041(a)			358		374
						4.00%, 09/20/2041		276		295
3.50%, 05/20/2041			73		76

See accompanying notes.

132

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT	Principal				U.S. GOVERNMENT & GOVERNMENT	Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)      Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)
Government National Mortgage Association (GNMA)					Government National Mortgage Association (GNMA)
(continued)					(continued)
4.00%, 10/15/2041	$	60	$	64	4.50%, 06/15/2040	$	42	$	46
4.00%, 10/15/2041		87		93	4.50%, 07/15/2040		53		58
4.00%, 11/15/2041		294		313	4.50%, 07/15/2040		672		732
4.00%, 11/20/2041		95		102	4.50%, 07/15/2040		41		45
4.00%, 12/15/2041		178		189	4.50%, 08/15/2040		79		87
4.00%, 12/15/2041		96		103	4.50%, 08/15/2040		59		65
4.00%, 12/20/2041		93		99	4.50%, 08/15/2040		79		85
4.00%, 01/15/2042		31		33	4.50%, 08/15/2040		57		63
4.00%, 01/20/2042		501		534	4.50%, 09/15/2040		67		74
4.00%, 02/20/2042		408		435	4.50%, 09/15/2040		83		90
4.00%, 03/15/2042		282		300	4.50%, 10/15/2040		80		88
4.00%, 03/15/2042		165		177	4.50%, 12/15/2040		41		44
4.00%, 03/20/2042		483		515	4.50%, 01/20/2041		77		84
4.00%, 04/20/2042		428		456	4.50%, 01/20/2041		93		102
4.00%, 05/15/2042		567		604	4.50%, 02/20/2041		89		97
4.00%, 05/20/2042		41		43	4.50%, 02/20/2041		88		97
4.00%, 07/20/2042		947		1,009	4.50%, 03/15/2041		36		40
4.00%, 06/20/2043		120		128	4.50%, 03/15/2041		193		209
4.00%, 08/15/2043		28		29	4.50%, 03/20/2041		49		53
4.00%, 09/15/2043		317		338	4.50%, 03/20/2041		80		87
4.00%, 09/20/2043		200		212	4.50%, 04/15/2041		38		41
4.00%, 10/20/2043		300		318	4.50%, 04/15/2041		92		100
4.00%, 11/20/2043		696		738	4.50%, 04/20/2041		95		104
4.00%, 02/20/2044		679		720	4.50%, 05/15/2041		55		60
4.00%, 03/15/2044		636		677	4.50%, 05/15/2041		71		78
4.00%, 04/20/2044		780		827	4.50%, 06/15/2041		173		188
4.00%, 05/20/2044		1,073		1,138	4.50%, 06/20/2041		304		331
4.00%, 06/20/2044		791		839	4.50%, 07/01/2041(f)		1,000		1,086
4.00%, 07/01/2044		3,675		3,895	4.50%, 07/15/2041		46		50
4.00%, 07/20/2044		3,165		3,357	4.50%, 07/15/2041		118		128
4.00%, 08/20/2044		2,259		2,396	4.50%, 07/15/2041		304		331
4.00%, 09/20/2044		2,105		2,233	4.50%, 07/20/2041		582		635
4.00%, 10/20/2044		1,350		1,432	4.50%, 07/20/2041		23		26
4.00%, 11/20/2044		877		929	4.50%, 08/15/2041		175		190
4.00%, 12/20/2044		757		802	4.50%, 08/20/2041		216		236
4.00%, 01/15/2045		190		202	4.50%, 09/20/2041		53		58
4.00%, 01/20/2045		558		592	4.50%, 11/20/2041		765		836
4.00%, 07/01/2045(f)		600		638	4.50%, 12/20/2041		53		57
4.50%, 04/20/2026		18		19	4.50%, 01/20/2042		385		421
4.50%, 11/20/2033		10		11	4.50%, 02/20/2042		194		212
4.50%, 02/15/2039		349		379	4.50%, 03/20/2042		48		53
4.50%, 03/15/2039		36		39	4.50%, 04/20/2042		94		103
4.50%, 03/15/2039		68		74	4.50%, 05/20/2042		111		121
4.50%, 03/15/2039		131		142	4.50%, 05/20/2043		502		548
4.50%, 03/15/2039		50		55	4.50%, 06/20/2043		408		446
4.50%, 03/20/2039		77		84	4.50%, 08/20/2043		83		90
4.50%, 04/15/2039		108		118	4.50%, 10/20/2043		485		523
4.50%, 04/15/2039		165		179	4.50%, 11/20/2043		1,458		1,573
4.50%, 04/15/2039		58		63	4.50%, 03/20/2044		1,920		2,071
4.50%, 05/15/2039		100		111	4.50%, 04/20/2044		84		90
4.50%, 05/15/2039		21		23	4.50%, 05/20/2044		1,432		1,545
4.50%, 05/15/2039		380		413	4.50%, 07/01/2044		650		701
4.50%, 05/15/2039		27		30	4.50%, 07/20/2044		763		823
4.50%, 05/15/2039		238		258	4.50%, 10/20/2044		125		135
4.50%, 06/15/2039		152		167	4.50%, 11/20/2044		270		292
4.50%, 07/15/2039		35		38	4.50%, 04/20/2045		400		432
4.50%, 08/15/2039		151		165	5.00%, 08/15/2033		81		90
4.50%, 09/15/2039		3		3	5.00%, 02/15/2034		93		104
4.50%, 11/15/2039		383		424	5.00%, 07/15/2035		239		265
4.50%, 11/15/2039		31		34	5.00%, 08/15/2035		58		65
4.50%, 12/15/2039		111		122	5.00%, 04/20/2037		8		9
4.50%, 01/15/2040		127		140	5.00%, 04/20/2038		507		555
4.50%, 02/15/2040		27		29	5.00%, 05/15/2038		120		133
4.50%, 02/15/2040		38		41	5.00%, 06/20/2038		53		58
4.50%, 02/15/2040		20		22	5.00%, 08/15/2038		231		257
4.50%, 02/15/2040		21		22	5.00%, 10/15/2038		30		33
4.50%, 02/15/2040		59		64	5.00%, 01/15/2039		251		278
4.50%, 02/15/2040		35		38	5.00%, 01/15/2039		272		302
4.50%, 03/15/2040		38		41	5.00%, 02/15/2039		165		183
4.50%, 05/15/2040		50		54	5.00%, 02/15/2039		195		216
4.50%, 06/15/2040		52		56	5.00%, 04/15/2039		275		307

See accompanying notes.

133

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT	Principal				U.S. GOVERNMENT & GOVERNMENT	Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)
Government National Mortgage Association (GNMA)					Government National Mortgage Association (GNMA)
(continued)					(continued)
5.00%, 05/15/2039	$	18	$	20	5.50%, 11/15/2038	$	23	$	26
5.00%, 06/15/2039		71		80	5.50%, 12/20/2038		26		30
5.00%, 06/15/2039		52		58	5.50%, 01/15/2039		25		28
5.00%, 06/20/2039		67		75	5.50%, 01/15/2039		42		48
5.00%, 07/15/2039		76		86	5.50%, 01/15/2039		55		62
5.00%, 07/15/2039		47		52	5.50%, 01/15/2039		6		7
5.00%, 07/15/2039		61		67	5.50%, 02/15/2039		17		19
5.00%, 07/15/2039		50		56	5.50%, 02/20/2039		139		156
5.00%, 08/15/2039		56		64	5.50%, 05/15/2039		6		7
5.00%, 09/15/2039		52		58	5.50%, 12/15/2039		36		40
5.00%, 09/15/2039		57		64	5.50%, 01/15/2040		295		333
5.00%, 09/15/2039		44		48	5.50%, 03/15/2040		134		151
5.00%, 09/15/2039		22		24	5.50%, 04/15/2040		297		339
5.00%, 09/15/2039		70		77	5.50%, 06/20/2040		145		163
5.00%, 11/15/2039		70		79	5.50%, 07/20/2040		40		46
5.00%, 12/15/2039		102		113	5.50%, 11/15/2040		34		39
5.00%, 02/15/2040		71		81	5.50%, 12/20/2040		32		37
5.00%, 02/15/2040		64		71	5.50%, 01/20/2041		485		554
5.00%, 02/15/2040		71		81	5.50%, 04/20/2041		90		102
5.00%, 04/15/2040		49		54	5.50%, 10/20/2041		76		86
5.00%, 05/15/2040		63		70	5.50%, 11/20/2041		86		98
5.00%, 05/15/2040		32		35	5.50%, 10/20/2042		230		259
5.00%, 05/20/2040		18		20	5.50%, 11/20/2042		222		252
5.00%, 06/15/2040		7		8	5.50%, 06/20/2043		243		275
5.00%, 06/15/2040		118		131	5.50%, 09/20/2043		331		371
5.00%, 06/15/2040		88		98	6.00%, 07/15/2032		1		1
5.00%, 06/15/2040		49		55	6.00%, 12/15/2032		2		2
5.00%, 06/20/2040		84		94	6.00%, 10/15/2034		33		39
5.00%, 07/15/2040		39		44	6.00%, 04/15/2035		24		28
5.00%, 07/20/2040		86		96	6.00%, 04/15/2036		19		22
5.00%, 01/20/2041		45		50	6.00%, 06/15/2036		35		40
5.00%, 02/20/2041		105		117	6.00%, 04/15/2037		56		65
5.00%, 04/15/2041		383		429	6.00%, 05/15/2037		54		61
5.00%, 05/20/2041		95		105	6.00%, 10/20/2037		80		92
5.00%, 06/20/2041		25		28	6.00%, 11/20/2037		30		34
5.00%, 07/20/2041		38		42	6.00%, 01/15/2038		24		27
5.00%, 08/20/2041		265		296	6.00%, 08/15/2038		20		23
5.00%, 10/20/2041		31		35	6.00%, 01/15/2039		172		197
5.00%, 11/20/2041		87		97	6.00%, 09/15/2039		82		95
5.00%, 12/20/2041		66		73	6.00%, 09/15/2039		112		129
5.00%, 02/20/2042		364		407	6.00%, 11/15/2039		141		161
5.00%, 03/20/2042		69		76	6.00%, 01/20/2042		81		93
5.00%, 04/20/2042		793		884	6.50%, 10/20/2028		1		2
5.00%, 12/20/2042		624		697	6.50%, 05/20/2029		1		1
5.00%, 01/20/2043		122		135	6.50%, 02/20/2032		1		1
5.00%, 05/20/2043		151		167	6.50%, 05/20/2032		8		9
5.00%, 07/20/2043		387		431	6.50%, 05/15/2037		72		83
5.00%, 11/20/2043		479		525	6.50%, 08/20/2038		25		29
5.00%, 01/20/2044		313		343	6.50%, 09/15/2038		24		27
5.00%, 02/20/2044		443		487	7.00%, 03/15/2029		3		3
5.00%, 05/20/2044		143		157	7.00%, 07/15/2031		2		2
5.00%, 07/20/2044		100		109			$		144,640
5.00%, 08/20/2044		141		154
5.00%, 07/01/2045		500		545	U.S. Treasury - 36.02%
5.50%, 01/15/2024		11		12	0.38%, 10/31/2016		3,190		3,188
5.50%, 11/15/2033		34		38	0.50%, 07/31/2016		2,255		2,258
5.50%, 03/15/2034		13		15	0.50%, 08/31/2016		2,735		2,739
5.50%, 04/15/2034		15		17	0.50%, 09/30/2016		2,690		2,694
5.50%, 07/15/2034		11		13	0.50%, 11/30/2016		2,695		2,697
5.50%, 11/15/2034		53		62	0.50%, 01/31/2017		2,532		2,531
5.50%, 02/15/2035		28		32	0.50%, 02/28/2017		2,100		2,099
5.50%, 03/15/2036		17		19	0.50%, 03/31/2017		2,620		2,617
5.50%, 04/15/2036		25		29	0.50%, 04/30/2017		1,890		1,887
5.50%, 12/15/2036		18		21	0.50%, 07/31/2017		6,000		5,979
5.50%, 04/15/2037		51		58	0.63%, 07/15/2016		300		301
5.50%, 05/15/2038		22		25	0.63%, 08/15/2016		1,705		1,710
5.50%, 06/15/2038		31		36	0.63%, 10/15/2016		5,000		5,013
5.50%, 08/15/2038		207		233	0.63%, 11/15/2016		5,225		5,238
5.50%, 08/15/2038		171		193	0.63%, 12/15/2016		3,125		3,131
5.50%, 09/15/2038		67		75	0.63%, 12/31/2016		2,650		2,656
5.50%, 10/20/2038		66		75

See accompanying notes.

134

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)     Value (000's)			AGENCY OBLIGATIONS (continued)		Amount (000's)  Value (000's)
U.S. Treasury (continued)					U.S. Treasury (continued)
0.63%, 02/15/2017	$	1,750	$	1,752	1.50%, 02/28/2019	$	2,400	$	2,420
0.63%, 05/31/2017		4,840		4,839	1.50%, 03/31/2019		730		735
0.63%, 06/30/2017		2,745		2,743	1.50%, 05/31/2019		2,955		2,971
0.63%, 08/31/2017		4,065		4,058	1.50%, 10/31/2019		5,880		5,883
0.63%, 09/30/2017		2,495		2,488	1.50%, 11/30/2019		2,420		2,420
0.63%, 11/30/2017		5,231		5,209	1.50%, 05/31/2020		2,730		2,715
0.63%, 04/30/2018		2,930		2,904	1.50%, 01/31/2022		3,114		3,015
0.75%, 01/15/2017		2,265		2,273	1.63%, 03/31/2019		6,050		6,122
0.75%, 03/15/2017		2,500		2,509	1.63%, 04/30/2019		2,250		2,275
0.75%, 06/30/2017		4,011		4,019	1.63%, 06/30/2019		5,000		5,047
0.75%, 10/31/2017		2,632		2,630	1.63%, 07/31/2019		3,675		3,706
0.75%, 12/31/2017		1,919		1,915	1.63%, 08/31/2019		5,130		5,171
0.75%, 02/28/2018		3,106		3,094	1.63%, 12/31/2019		3,105		3,118
0.75%, 03/31/2018		4,145		4,124	1.63%, 06/30/2020		4,400		4,396
0.75%, 04/15/2018		2,455		2,442	1.63%, 08/15/2022		2,030		1,968
0.88%, 09/15/2016		4,170		4,194	1.63%, 11/15/2022		1,360		1,315
0.88%, 11/30/2016		2,667		2,683	1.75%, 10/31/2018		1,320		1,346
0.88%, 12/31/2016		3,755		3,777	1.75%, 09/30/2019		2,745		2,778
0.88%, 01/31/2017		2,450		2,464	1.75%, 10/31/2020		3,920		3,922
0.88%, 02/28/2017		4,110		4,132	1.75%, 02/28/2022		2,190		2,152
0.88%, 04/15/2017		3,780		3,800	1.75%, 03/31/2022		2,925		2,872
0.88%, 04/30/2017		6,209		6,240	1.75%, 04/30/2022		2,965		2,909
0.88%, 05/15/2017		2,682		2,695	1.75%, 05/15/2022		2,700		2,648
0.88%, 06/15/2017		1,978		1,987	1.75%, 05/15/2023		5,047		4,882
0.88%, 07/15/2017		2,450		2,460	1.88%, 08/31/2017		3,904		4,002
0.88%, 08/15/2017		2,530		2,539	1.88%, 09/30/2017		1,314		1,347
0.88%, 10/15/2017		2,005		2,010	1.88%, 10/31/2017		2,984		3,060
0.88%, 11/15/2017		2,505		2,510	1.88%, 06/30/2020		3,120		3,156
0.88%, 01/15/2018		2,336		2,337	1.88%, 11/30/2021		3,981		3,955
0.88%, 01/31/2018		2,635		2,635	1.88%, 05/31/2022		3,020		2,986
0.88%, 07/31/2019		4,000		3,917	2.00%, 07/31/2020		4,074		4,142
1.00%, 08/31/2016		2,179		2,194	2.00%, 09/30/2020		2,250		2,283
1.00%, 09/30/2016		4,322		4,355	2.00%, 11/30/2020		1,115		1,129
1.00%, 10/31/2016		5,484		5,526	2.00%, 02/28/2021		1,655		1,670
1.00%, 03/31/2017		3,545		3,573	2.00%, 05/31/2021		4,865		4,896
1.00%, 09/15/2017		2,505		2,519	2.00%, 08/31/2021		6,555		6,577
1.00%, 12/15/2017		2,455		2,466	2.00%, 10/31/2021		3,100		3,106
1.00%, 02/15/2018		2,415		2,422	2.00%, 11/15/2021		4,290		4,298
1.00%, 03/15/2018		2,420		2,426	2.00%, 02/15/2022		2,195		2,195
1.00%, 05/15/2018		2,500		2,503	2.00%, 02/15/2023		5,467		5,407
1.00%, 05/31/2018		3,250		3,251	2.00%, 02/15/2025		8,505		8,263
1.00%, 06/30/2019		1,800		1,774	2.13%, 08/31/2020		3,815		3,896
1.00%, 08/31/2019		1,680		1,651	2.13%, 01/31/2021		3,265		3,319
1.00%, 09/30/2019		1,390		1,364	2.13%, 06/30/2021		1,000		1,012
1.00%, 11/30/2019		3,500		3,423	2.13%, 08/15/2021		3,350		3,388
1.13%, 06/15/2018		2,535		2,543	2.13%, 09/30/2021		5,450		5,504
1.13%, 05/31/2019		3,520		3,491	2.13%, 12/31/2021		2,505		2,525
1.13%, 12/31/2019		2,190		2,151	2.13%, 06/30/2022		3,060		3,073
1.13%, 03/31/2020		3,130		3,062	2.13%, 05/15/2025		6,320		6,205
1.13%, 04/30/2020		2,492		2,435	2.25%, 11/30/2017		1,529		1,583
1.25%, 10/31/2018		2,445		2,453	2.25%, 03/31/2021		1,310		1,338
1.25%, 11/30/2018		5,825		5,840	2.25%, 04/30/2021		1,135		1,159
1.25%, 01/31/2019		945		945	2.25%, 07/31/2021		4,420		4,504
1.25%, 10/31/2019		730		723	2.25%, 11/15/2024		8,230		8,180
1.25%, 01/31/2020		3,408		3,362	2.38%, 07/31/2017		4,040		4,180
1.25%, 02/29/2020		1,296		1,277	2.38%, 05/31/2018		1,838		1,912
1.38%, 06/30/2018		1,683		1,701	2.38%, 06/30/2018		3,188		3,316
1.38%, 07/31/2018		2,390		2,414	2.38%, 12/31/2020		1,689		1,741
1.38%, 09/30/2018		5,430		5,475	2.38%, 08/15/2024		6,945		6,982
1.38%, 11/30/2018		1,700		1,713	2.50%, 06/30/2017		3,129		3,244
1.38%, 12/31/2018		2,000		2,011	2.50%, 08/15/2023		2,682		2,740
1.38%, 02/28/2019		1,627		1,632	2.50%, 05/15/2024		6,320		6,428
1.38%, 01/31/2020		2,040		2,024	2.50%, 02/15/2045		6,350		5,589
1.38%, 02/29/2020		3,130		3,103	2.63%, 01/31/2018		1,266		1,323
1.38%, 03/31/2020		3,365		3,332	2.63%, 08/15/2020		4,490		4,696
1.38%, 04/30/2020		2,870		2,839	2.63%, 11/15/2020		4,312		4,504
1.38%, 05/31/2020		2,765		2,732	2.75%, 11/30/2016		4,806		4,960
1.50%, 07/31/2016		3,433		3,475	2.75%, 05/31/2017		1,470		1,530
1.50%, 08/31/2018		2,990		3,029	2.75%, 12/31/2017		1,625		1,702
1.50%, 12/31/2018		2,569		2,594	2.75%, 02/28/2018		1,673		1,754
1.50%, 01/31/2019		3,205		3,234	2.75%, 02/15/2019		3,003		3,163

See accompanying notes.

135

Schedule of Investments
Bond Market Index Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)       Value (000's)			AGENCY OBLIGATIONS (continued)		Amount (000's)      Value (000's)
U.S. Treasury (continued)					U.S. Treasury (continued)
2.75%, 11/15/2023	$	3,306	$	3,437		8.00%, 11/15/2021	$	1,094	$	1,494
2.75%, 02/15/2024		4,166		4,325		8.75%, 05/15/2017		213		245
2.75%, 08/15/2042		2,111		1,964		8.88%, 08/15/2017		1,600		1,876
2.75%, 11/15/2042		3,730		3,470				$		683,857
2.88%, 03/31/2018		3,692		3,886	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
2.88%, 05/15/2043		5,153		4,911	OBLIGATIONS			$		1,218,627
3.00%, 08/31/2016		3,594		3,704	Total Investments			$		2,086,952
3.00%, 09/30/2016		5,451		5,627	Liabilities in Excess of Other Assets, Net - (9.92)%			$		(188,391	)
3.00%, 02/28/2017		2,604		2,710	TOTAL NET ASSETS - 100.00%			$		1,898,561
3.00%, 05/15/2042		587		575
3.00%, 11/15/2044		4,945		4,837
3.00%, 05/15/2045		3,800		3,724	(a)	Variable Rate. Rate shown is in effect at June 30, 2015.
3.13%, 10/31/2016		2,674		2,770	(b)	Security exempt from registration under Rule 144A of the Securities Act of
3.13%, 01/31/2017		1,648		1,715		1933. These securities may be resold in transactions exempt from
3.13%, 04/30/2017		1,908		1,996		registration, normally to qualified institutional buyers. At the end of the
3.13%, 05/15/2019		2,656		2,834		period, the value of these securities totaled $10,237 or 0.54% of net assets.
3.13%, 05/15/2021		2,420		2,588	(c)	Non-Income Producing Security
3.13%, 11/15/2041		2,077		2,091	(d)	Security purchased on a when-issued basis.
3.13%, 02/15/2042		2,318		2,331	(e)	Credit support indicates investments that benefit from credit enhancement
3.13%, 02/15/2043		2,730		2,734		or liquidity support provided by a third party bank, institution, or
3.13%, 08/15/2044		3,650		3,656		government agency.
3.25%, 07/31/2016		1,724		1,778	(f)	Security was purchased in a "to-be-announced" ("TBA") transaction. See
3.25%, 12/31/2016		2,004		2,087		Notes to Financial Statements for additional information.
3.25%, 03/31/2017		2,936		3,074
3.38%, 11/15/2019		3,640		3,930
3.38%, 05/15/2044		4,040		4,244
3.50%, 02/15/2018		2,607		2,784		Portfolio Summary (unaudited)
3.50%, 05/15/2020		3,477		3,781	Sector					Percent
3.50%, 02/15/2039		501		540	Government					42.85	%
3.63%, 08/15/2019		5,578		6,072	Mortgage Securities					30.33	%
3.63%, 02/15/2020		5,986		6,537	Exchange Traded Funds					10.30	%
3.63%, 02/15/2021		5,000		5,486	Financial					8.21	%
3.63%, 08/15/2043		3,100		3,410	Consumer, Non-cyclical					3.76	%
3.63%, 02/15/2044		3,800		4,178	Energy					3.23	%
3.75%, 11/15/2018		2,385		2,591	Communications					2.63	%
3.75%, 08/15/2041		2,210		2,482	Utilities					1.85	%
3.75%, 11/15/2043		4,510		5,073	Industrial					1.69	%
3.88%, 05/15/2018		806		873	Consumer, Cyclical					1.44	%
3.88%, 08/15/2040		714		816	Technology					1.12	%
4.00%, 08/15/2018		925		1,010	Basic Materials					1.07	%
4.25%, 11/15/2017		1,733		1,874	Asset Backed Securities					0.56	%
4.25%, 05/15/2039		2,619		3,160	Revenue Bonds					0.48	%
4.25%, 11/15/2040		906		1,097	General Obligation Unlimited					0.36	%
4.38%, 02/15/2038		1,300		1,599	Insured					0.02	%
4.38%, 11/15/2039		650		799	Diversified					0.01	%
4.38%, 05/15/2040		1,134		1,396	General Obligation Limited					0.01	%
4.38%, 05/15/2041		1,870		2,311	Investments Sold Short					(0.02	)%
4.50%, 05/15/2017		1,250		1,340	Liabilities in Excess of Other Assets, Net					(9.90	)%
4.50%, 02/15/2036		4,194		5,273	TOTAL NET ASSETS					100.00	%
4.50%, 05/15/2038		380		475
4.50%, 08/15/2039		543		680
4.63%, 11/15/2016		2,483		2,625
4.63%, 02/15/2017		3,400		3,625
4.63%, 02/15/2040		1,930		2,461
4.75%, 08/15/2017		2,704		2,935
4.75%, 02/15/2037		2,115		2,740
4.75%, 02/15/2041		1,008		1,313
5.00%, 05/15/2037		580		777
5.25%, 11/15/2028		1,140		1,486
5.25%, 02/15/2029		1,000		1,305
5.38%, 02/15/2031		264		355
5.50%, 08/15/2028		750		997
6.13%, 11/15/2027		1,390		1,928
6.25%, 08/15/2023		1,210		1,579
6.50%, 11/15/2026		1,398		1,967
6.63%, 02/15/2027		180		256
6.88%, 08/15/2025		1,400		1,978
7.25%, 08/15/2022		2,500		3,374
7.50%, 11/15/2016		810		888
7.50%, 11/15/2024		370		535
7.63%, 02/15/2025		1,789		2,621

See accompanying notes.

136

					Schedule of Investments
					Bond Market Index Account
					June 30, 2015 (unaudited)
					Short Sales Outstanding
U.S. GOVERNMENT & GOVERNMENT			Principal
AGENCY OBLIGATIONS - (0.02)%		Amount (000's)       Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC) -
(0.02	)%
4.50%, 08/01/2041		$	300	$	323
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY $					323
OBLIGATIONS (proceeds $323)
TOTAL SHORT SALES (proceeds $323)			$		323

See accompanying notes.

137

Schedule of Investments
Diversified Balanced Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held      Value (000's)
Principal Funds, Inc. Institutional Class - 14.68%
International Equity Index Fund (a)		6,972,008	$	70,905
MidCap S&P 400 Index Fund (a)		2,027,094		40,907
SmallCap S&P 600 Index Fund (a)		1,633,504		40,903
		$		152,715
Principal Variable Contracts Funds, Inc. Class 1 - 85.35%
Bond Market Index Account (a)	51,349,832			529,417
LargeCap S&P 500 Index Account (a)	24,237,629			358,474
		$		887,891
TOTAL INVESTMENT COMPANIES		$		1,040,606
Total Investments		$		1,040,606
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(267	)
TOTAL NET ASSETS - 100.00%		$		1,040,339

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	50.89	%
Domestic Equity Funds	42.32	%
International Equity Funds	6.82	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

138

Schedule of Investments
Diversified Balanced Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015  June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Account	49,274,630	$	495,642		3,915,382	$	40,766	1,840,180		$	19,240	51,349,832	$	517,280
International Equity Index Fund	7,315,976		72,625		358,112		3,620	702,080			7,256	6,972,008		68,987
LargeCap S&P 500 Index Account	23,980,643		229,711		1,589,250		23,437	1,332,264			20,036	24,237,629		233,423
MidCap S&P 400 Index Fund	2,081,188		30,530		82,322		1,645	136,416			2,774	2,027,094		29,452
SmallCap S&P 600 Index Fund	1,691,547		29,264		105,584		2,580	163,627			4,091	1,633,504		27,813
		$	857,772		$		72,048			$	53,397	$		876,955
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond Market Index Account	$			—	$			112			$			—
International Equity Index Fund				—				(2	)					—
LargeCap S&P 500 Index Account				—				311						—
MidCap S&P 400 Index Fund				—				51						—
SmallCap S&P 600 Index Fund				—				60						—
	$			—	$			532			$			—
Amounts in thousands except shares

See accompanying notes.

139

Schedule of Investments
Diversified Balanced Managed Volatility Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held     Value (000's)
Principal Funds, Inc. Institutional Class - 14.68%
International Equity Index Fund (a)		821,860	$	8,358
MidCap S&P 400 Index Fund (a)		238,938		4,822
SmallCap S&P 600 Index Fund (a)		192,546		4,821
		$		18,001
Principal Variable Contracts Funds, Inc. Class 1 - 85.35%
Bond Market Index Account (a)		6,050,620		62,382
LargeCap S&P 500 Managed Volatility Index		3,747,710		42,312
Account (a)
		$		104,694
TOTAL INVESTMENT COMPANIES		$		122,695
Total Investments		$		122,695
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(35	)
TOTAL NET ASSETS - 100.00%		$		122,660

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	50.86	%
Domestic Equity Funds	42.35	%
International Equity Funds	6.82	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

140

Schedule of Investments
Diversified Balanced Managed Volatility Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015            June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Account	4,117,024	$	41,895		2,080,817	$	21,689	147,221		$	1,536	6,050,620	$	62,047
International Equity Index Fund	611,378		6,351		278,452		2,831	67,970			704	821,860		8,477
LargeCap S&P 500 Managed	2,616,786		28,521		1,280,816		14,563	149,892			1,730	3,747,710		41,354
Volatility Index Account
MidCap S&P 400 Index Fund	173,892		3,374		78,493		1,580	13,447			273	238,938		4,681
SmallCap S&P 600 Index Fund	141,322		3,446		67,647		1,663	16,423			412	192,546		4,698
		$	83,587		$		42,326			$	4,655	$		121,257
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond Market Index Account	$			—	$			(1	)	$				—
International Equity Index Fund				—				(1	)					—
LargeCap S&P 500 Managed Volatility
Index Account				—				—						—
MidCap S&P 400 Index Fund				—				—						—
SmallCap S&P 600 Index Fund				—				1						—
	$			—	$			(1	)	$				—
Amounts in thousands except shares

See accompanying notes.

141

Schedule of Investments
Diversified Growth Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held     Value (000's)
Principal Funds, Inc. Institutional Class - 19.67%
International Equity Index Fund (a)	29,826,568		$	303,336
MidCap S&P 400 Index Fund (a)		7,588,074		153,127
SmallCap S&P 600 Index Fund (a)		6,114,727		153,113
		$		609,576
Principal Variable Contracts Funds, Inc. Class 1 - 80.36%
Bond Market Index Account (a)	107,634,785			1,109,715
LargeCap S&P 500 Index Account (a)	93,321,038			1,380,218
		$		2,489,933
TOTAL INVESTMENT COMPANIES		$		3,099,509
Total Investments		$		3,099,509
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(785	)
TOTAL NET ASSETS - 100.00%		$		3,098,724

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	54.42	%
Fixed Income Funds	35.82	%
International Equity Funds	9.79	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

142

Schedule of Investments
Diversified Growth Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015                             June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Account	98,500,294	$	990,493		12,455,392	$	129,667	3,320,901		$	34,769	107,634,785		$ 1,085,624
International Equity Index Fund	29,846,185		304,246		2,285,246		23,342	2,304,863			23,847	29,826,568		303,718
LargeCap S&P 500 Index Account	88,047,755		920,281		8,097,566		119,960	2,824,283			42,528	93,321,038		997,964
MidCap S&P 400 Index Fund	7,428,975		116,730		492,875		9,924	333,776			6,785	7,588,074		119,892
SmallCap S&P 600 Index Fund	6,038,091		114,137		570,768		14,033	494,132			12,393	6,114,727		115,862
		$	2,445,887		$		296,926			$	120,322		$	2,623,060
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond Market Index Account	$			—	$			233			$			—
International Equity Index Fund				—				(23	)					—
LargeCap S&P 500 Index Account				—				251						—
MidCap S&P 400 Index Fund				—				23						—
SmallCap S&P 600 Index Fund				—				85						—
	$			—	$			569			$			—
Amounts in thousands except shares

See accompanying notes.

143

Schedule of Investments
Diversified Growth Managed Volatility Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held     Value (000's)
Principal Funds, Inc. Institutional Class - 19.66%
International Equity Index Fund (a)		2,062,532	$	20,976
MidCap S&P 400 Index Fund (a)		524,713		10,589
SmallCap S&P 600 Index Fund (a)		422,839		10,588
		$		42,153
Principal Variable Contracts Funds, Inc. Class 1 - 80.37%
Bond Market Index Account (a)		7,441,180		76,718
LargeCap S&P 500 Managed Volatility Index		8,465,264		95,573
Account (a)
		$		172,291
TOTAL INVESTMENT COMPANIES		$		214,444
Total Investments		$		214,444
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(58	)
TOTAL NET ASSETS - 100.00%		$		214,386

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	54.46	%
Fixed Income Funds	35.79	%
International Equity Funds	9.78	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

144

Schedule of Investments
Diversified Growth Managed Volatility Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015             June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Account	5,182,725	$	52,705		2,447,889	$	25,496	189,434		$	1,979	7,441,180	$	76,222
International Equity Index Fund	1,570,429		16,383		637,038		6,506	144,935			1,502	2,062,532		21,386
LargeCap S&P 500 Managed	6,049,724		65,740		2,627,477		29,947	211,937			2,439	8,465,264		93,248
Volatility Index Account
MidCap S&P 400 Index Fund	390,867		7,582		156,325		3,155	22,479			457	524,713		10,280
SmallCap S&P 600 Index Fund	317,668		7,764		137,361		3,384	32,190			809	422,839		10,339
		$	150,174		$		68,488			$	7,186	$		211,475
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond Market Index Account	$			—	$			—		$				—
International Equity Index Fund				—				(1	)					—
LargeCap S&P 500 Managed Volatility
Index Account				—				—						—
MidCap S&P 400 Index Fund				—				—						—
SmallCap S&P 600 Index Fund				—				—						—
	$			—	$			(1	)	$				—
Amounts in thousands except shares

See accompanying notes.

145

Schedule of Investments
Diversified Income Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held     Value (000's)
Principal Funds, Inc. Institutional Class - 9.74%
International Equity Index Fund (a)		682,719	$	6,943
MidCap S&P 400 Index Fund (a)		260,531		5,258
SmallCap S&P 600 Index Fund (a)		209,946		5,257
		$		17,458
Principal Variable Contracts Funds, Inc. Class 1 - 90.29%
Bond Market Index Account (a)	11,438,812			117,934
LargeCap S&P 500 Index Account (a)		2,966,781		43,879
		$		161,813
TOTAL INVESTMENT COMPANIES		$		179,271
Total Investments		$		179,271
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(50	)
TOTAL NET ASSETS - 100.00%		$		179,221

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	65.81	%
Domestic Equity Funds	30.34	%
International Equity Funds	3.88	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

146

Schedule of Investments
Diversified Income Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015    June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Account	10,654,542	$	108,077		1,624,575	$	16,958	840,305		$	8,762	11,438,812	$	116,273
International Equity Index Fund	695,303		7,181		94,325		958	106,909			1,098	682,719		7,040
LargeCap S&P 500 Index Account	2,848,873		33,071		457,044		6,759	339,136			5,076	2,966,781		34,785
MidCap S&P 400 Index Fund	259,609		4,370		33,478		672	32,556			659	260,531		4,386
SmallCap S&P 600 Index Fund	211,009		4,379		31,142		762	32,205			801	209,946		4,344
		$	157,078		$		26,109			$	16,396	$		166,828
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond Market Index Account	$			—	$			—			$			—
International Equity Index Fund				—				(1	)					—
LargeCap S&P 500 Index Account				—				31						—
MidCap S&P 400 Index Fund				—				3						—
SmallCap S&P 600 Index Fund				—				4						—
	$			—	$			37			$			—
Amounts in thousands except shares

See accompanying notes.

147

Schedule of Investments
Diversified International Account
June 30, 2015 (unaudited)
COMMON STOCKS - 99.15%	Shares Held      Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Advertising - 0.36%				Commercial Services - 0.83%
WPP PLC	64,253	$	1,442	Ashtead Group PLC	113,202	$	1,951
				TAL Education Group ADR(b)	38,525		1,360
					$		3,311
Aerospace & Defense - 1.19%
Kawasaki Heavy Industries Ltd	373,000		1,738	Computers - 1.13%
Safran SA	28,650		1,947	CGI Group Inc (b)	31,842		1,245
Thales SA	17,621		1,065	TDK Corp	42,300		3,239
	$		4,750		$		4,484
Agriculture - 0.41%				Diversified Financial Services - 2.00%
KT&G Corp	19,144		1,627	Intermediate Capital Group PLC	105,121		908
				Macquarie Group Ltd	61,369		3,845
				ORIX Corp	162,780		2,417
Airlines - 1.00%				Paragon Group of Cos PLC/The	122,944		800
easyJet PLC	42,148		1,024
Ryanair Holdings PLC ADR	41,414		2,955		$		7,970
	$		3,979	Electric - 2.58%
				Enel SpA	599,001		2,715
Automobile Manufacturers - 3.94%				Iberdrola SA	453,576		3,062
Daimler AG	39,626		3,610
Maruti Suzuki India Ltd (a)	26,111		1,716	Korea Electric Power Corp	55,280		2,260
Renault SA	28,493		2,987	Tenaga Nasional BHD	668,400		2,239
Toyota Motor Corp	110,800		7,415		$		10,276
	$		15,728	Electrical Components & Equipment - 0.37%
				Mabuchi Motor Co Ltd	23,600		1,493
Automobile Parts & Equipment - 1.99%
Bridgestone Corp	62,200		2,299
Continental AG	8,351		1,977	Electronics - 3.94%
Valeo SA	23,182		3,667	Alps Electric Co Ltd	103,700		3,198
	$		7,943	Hon Hai Precision Industry Co Ltd	921,044		2,894
				Hoya Corp	73,500		2,944
Banks - 13.06%				Murata Manufacturing Co Ltd	17,800		3,106
Axis Bank Ltd	246,122		2,158	Omron Corp	65,100		2,828
Bank of Kyoto Ltd/The	80,000		920	SCREEN Holdings Co Ltd	116,000		730
Bank of Montreal	39,800		2,358		$		15,700
China Construction Bank Corp	1,676,000		1,529
Commonwealth Bank of Australia	53,828		3,530	Engineering & Construction - 1.43%
Danske Bank A/S	84,791		2,493	Acciona SA	12,023		911
DBS Group Holdings Ltd	130,800		2,007	Lend Lease Group	127,196		1,471
DNB ASA	148,523		2,473	Promotora y Operadora de Infraestructura	75,600		809
ICICI Bank Ltd ADR	208,150		2,169	SAB de CV (b)
KBC Groep NV	23,677		1,587	Skanska AB	53,263		1,079
Mediobanca SpA	176,759		1,733	Vinci SA	24,539		1,424
Mitsubishi UFJ Financial Group Inc	613,500		4,414		$		5,694
Mizuho Financial Group Inc	1,034,200		2,238
Natixis SA	466,418		3,366	Food - 2.69%
Nordea Bank AB	245,236		3,059	Delhaize Group	20,945		1,704
Oversea-Chinese Banking Corp Ltd	215,200		1,625	Ezaki Glico Co Ltd	17,700		879
Royal Bank of Canada	75,950		4,645	Greencore Group PLC	204,707		1,011
Sumitomo Mitsui Financial Group Inc	56,600		2,520	Gruma SAB de CV	98,900		1,276
Svenska Handelsbanken AB	109,674		1,601	JBS SA	178,600		940
Toronto-Dominion Bank/The	104,942		4,456	Nestle SA	68,196		4,921
Yes Bank Ltd	89,086		1,179		$		10,731
	$		52,060	Forest Products & Paper - 1.08%
Beverages - 1.40%				Mondi PLC	80,522		1,733
Anheuser-Busch InBev NV	43,069		5,183	Smurfit Kappa Group PLC	28,158		776
Carlsberg A/S	4,460		404	Stora Enso OYJ	174,166		1,795
	$		5,587		$		4,304
Biotechnology - 0.60%				Gas - 0.80%
CSL Ltd	20,168		1,345	Gas Natural SDG SA	79,131		1,797
Genmab A/S (b)	12,074		1,049	Keyera Corp	41,400		1,382
	$		2,394		$		3,179
Building Materials - 0.78%				Hand & Machine Tools - 0.31%
CRH PLC	68,136		1,921	Fuji Electric Co Ltd	287,000		1,234
Kingspan Group PLC	48,607		1,174
	$		3,095	Healthcare - Products - 0.52%
				Coloplast A/S	31,488		2,065
Chemicals - 1.83%
Evonik Industries AG	23,470		896
Givaudan SA (b)	872		1,510	Healthcare - Services - 0.98%
Lonza Group AG (b)	12,080		1,614	Fresenius SE & Co KGaA	29,636		1,903
Potash Corp of Saskatchewan Inc	56,600		1,753	Netcare Ltd	254,135		800
Yara International ASA	29,479		1,536	Ramsay Health Care Ltd	25,535		1,209
	$		7,309		$		3,912

See accompanying notes.

148

Schedule of Investments
Diversified International Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Home Builders - 2.76%				Oil & Gas (continued)
Barratt Developments PLC	293,267	$	2,829	Statoil ASA	96,185	$	1,720
Persimmon PLC (b)	80,681		2,503	Suncor Energy Inc	80,566		2,219
Sekisui House Ltd	129,300		2,053	TOTAL SA	40,625		1,993
Taylor Wimpey PLC	1,242,626		3,624		$		15,866
	$		11,009
				Pharmaceuticals - 8.57%
Home Furnishings - 0.71%				Actelion Ltd (b)	10,329		1,513
Howden Joinery Group PLC	198,741		1,613	Bayer AG	31,725		4,443
Steinhoff International Holdings Ltd	193,316		1,224	BTG PLC (b)	117,747		1,161
	$		2,837	Novartis AG	83,871		8,250
				Novo Nordisk A/S	104,045		5,709
Insurance - 5.62%				Roche Holding AG	28,874		8,096
BB Seguridade Participacoes SA	220,100		2,424	Shire PLC	62,441		5,017
Direct Line Insurance Group PLC	575,220		3,036		$		34,189
Fairfax Financial Holdings Ltd	2,746		1,354
Hannover Rueck SE	36,832		3,565	Pipelines - 0.53%
Legal & General Group PLC	586,498		2,293	TransCanada Corp	52,100		2,117
PICC Property & Casualty Co Ltd	450,000		1,025
Prudential PLC	117,550		2,833
Sampo Oyj	37,828		1,783	Private Equity - 0.51%
Sanlam Ltd	244,321		1,330	3i Group PLC	251,278		2,039
Tokio Marine Holdings Inc	66,200		2,753
	$		22,396	Real Estate - 2.84%
				Brookfield Asset Management Inc	168,328		5,881
Internet - 1.07%				Cheung Kong Property Holdings Ltd (b)	241,500		2,003
Tencent Holdings Ltd	139,900		2,797	Deutsche Annington Immobilien SE	40,237		1,136
Vipshop Holdings Ltd ADR(b)	65,420		1,456
				Deutsche Wohnen AG	61,316		1,406
	$		4,253	Wheelock & Co Ltd	178,000		908
Investment Companies - 1.81%					$		11,334
CK Hutchison Holdings Ltd	263,000		3,866	REITS - 0.56%
Investor AB	89,703		3,345	Mirvac Group	858,204		1,223
	$		7,211	Segro PLC	160,978		1,025
Iron & Steel - 0.80%					$		2,248
APERAM SA (b)	27,882		1,129
				Retail - 5.34%
JFE Holdings Inc	93,600		2,074	Alimentation Couche-Tard Inc	152,252		6,513
	$		3,203	Dollarama Inc	72,300		4,382
Leisure Products & Services - 0.31%				Mr Price Group Ltd	66,140		1,362
Yamaha Motor Co Ltd	55,600		1,215	Next PLC	17,766		2,079
				Pandora A/S	44,498		4,775
				Travis Perkins PLC	21,413		709
Machinery - Construction & Mining - 0.96%				Wal-Mart de Mexico SAB de CV	607,900		1,485
Mitsubishi Electric Corp	296,000		3,822		$		21,305
				Semiconductors - 2.41%
Machinery - Diversified - 0.38%				ams AG	32,674		1,429
Sumitomo Heavy Industries Ltd	263,000		1,532	ARM Holdings PLC	123,030		2,013
				Dialog Semiconductor PLC (b)	44,010		2,380
Media - 1.57%				Taiwan Semiconductor Manufacturing Co Ltd	835,140		3,799
ITV PLC	1,105,447		4,574		$		9,621
Mediaset Espana Comunicacion SA	63,699		836
Numericable-SFR SAS (b)	15,639		832	Software - 0.96%
				HCL Technologies Ltd	171,611		2,477
	$		6,242	UBISOFT Entertainment (b)	74,807		1,338
Metal Fabrication & Hardware - 0.42%					$		3,815
SKF AB	73,861		1,685
				Telecommunications - 7.74%
				Bharti Infratel Ltd	161,425		1,132
Mining - 1.02%				BT Group PLC	582,985		4,128
BHP Billiton Ltd	88,162		1,798	China Mobile Ltd	246,000		3,147
BHP Billiton PLC	70,611		1,388	China Telecom Corp Ltd	3,672,000		2,151
South32 Ltd (b)	555,217		767	Deutsche Telekom AG	218,148		3,761
South32 Ltd (b)	70,611		96	Hellenic Telecommunications Organization	87,811		700
	$		4,049	SA (a)
				KDDI Corp	117,900		2,845
Miscellaneous Manufacturing - 1.47%				MTN Group Ltd	90,661		1,703
FUJIFILM Holdings Corp	81,500		2,909	Nippon Telegraph & Telephone Corp	82,200		2,977
Largan Precision Co Ltd	26,000		2,968	Orange SA	195,320		3,019
	$		5,877	Proximus	63,906		2,261
Oil & Gas - 3.98%				SK Telecom Co Ltd	10,387		2,324
Caltex Australia Ltd	56,119		1,377	Telekom Malaysia Bhd	408,900		707
Canadian Natural Resources Ltd	81,000		2,200		$		30,855
PetroChina Co Ltd	1,652,000		1,840	Transportation - 1.59%
Royal Dutch Shell PLC - A Shares	59,625		1,686	Canadian National Railway Co	68,676		3,962
Royal Dutch Shell PLC - B Shares	99,440		2,831

See accompanying notes.

149

Schedule of Investments
Diversified International Account
June 30, 2015 (unaudited)

COMMON STOCKS (continued)	Shares Held	Value (000			's)
Transportation (continued)
Canadian Pacific Railway Ltd	9,268		$	1,484
Euronav NV	60,357			894
		$		6,340
TOTAL COMMON STOCKS		$		395,327
INVESTMENT COMPANIES - 0.48%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 0.48%
BlackRock Liquidity Funds FedFund Portfolio	1,924,599			1,925
TOTAL INVESTMENT COMPANIES		$		1,925
Total Investments		$		397,252
Other Assets in Excess of Liabilities, Net - 0.37%		$		1,495
TOTAL NET ASSETS - 100.00%		$		398,747

(a)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $2,416 or 0.61% of net assets.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Country	Percent
Japan	16.49	%
Canada	11.54	%
United Kingdom	10.68	%
Switzerland	6.49	%
Germany	6.26	%
France	5.44	%
Australia	4.53	%
Denmark	4.14	%
Ireland	3.22	%
China	3.05	%
Belgium	2.93	%
India	2.71	%
Sweden	2.70	%
Hong Kong	2.49	%
Taiwan, Province Of China	2.42	%
South Africa	2.05	%
Spain	1.66	%
Korea, Republic Of	1.56	%
Norway	1.44	%
Netherlands	1.13	%
Italy	1.11	%
Singapore	0.91	%
Finland	0.90	%
Mexico	0.89	%
Brazil	0.85	%
Malaysia	0.74	%
United States	0.48	%
Austria	0.36	%
Luxembourg	0.28	%
Greece	0.18	%
Other Assets in Excess of Liabilities, Net	0.37	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

150

Schedule of Investments
Equity Income Account
June 30, 2015 (unaudited)
COMMON STOCKS - 97.91%	Shares Held      Value (000's)			COMMON STOCKS (continued)	Shares Held    Value (000's)
Aerospace & Defense - 2.25%				Gas - 1.10%
Lockheed Martin Corp	36,597	$	6,804	Sempra Energy	65,455	$	6,476
Raytheon Co	68,011		6,507
	$		13,311	Healthcare - Products - 2.01%
Apparel - 1.44%				Becton Dickinson and Co	30,371		4,302
VF Corp	122,191		8,522	Medtronic PLC	102,126		7,568
					$		11,870
Automobile Manufacturers - 1.31%				Insurance - 6.17%
PACCAR Inc	121,331		7,742	ACE Ltd	111,628		11,350
				Allstate Corp/The	82,054		5,323
				Chubb Corp/The	42,399		4,034
Automobile Parts & Equipment - 2.54%				MetLife Inc	246,544		13,804
Autoliv Inc	65,691		7,669	Swiss Re AG ADR	87,960		1,955
Johnson Controls Inc	148,184		7,340		$		36,466
	$		15,009
				Machinery - Diversified - 2.43%
Banks - 9.81%				Deere & Co	147,615		14,326
Australia & New Zealand Banking Group Ltd	65,409		1,619
ADR
Bank of Nova Scotia/The	97,288		5,023	Media - 0.40%
Grupo Financiero Santander Mexico SAB de	172,851		1,582	Walt Disney Co/The	20,725		2,366
CV ADR
JP Morgan Chase & Co	209,197		14,175	Mining- 0.87%
M&T Bank Corp	42,062		5,255	BHP BillitonLtd ADR	117,712		4,792
PNC Financial Services Group Inc/The	120,221		11,499	South32 Ltd ADR(a)	46,752		314
US Bancorp/MN	192,628		8,360		$		5,106
Wells Fargo & Co	185,279		10,420
	$		57,933	Miscellaneous Manufacturing - 2.05%
				3M Co	21,396		3,301
Beverages - 0.69%				Parker-Hannifin Corp	75,603		8,795
Coca-Cola Co/The	103,965		4,078		$		12,096
				Oil & Gas - 10.13%
Chemicals - 1.49%				Chevron Corp	68,995		6,656
Air Products & Chemicals Inc	25,783		3,528	Cimarex Energy Co	38,380		4,234
EI du Pont de Nemours & Co	82,799		5,295	Crescent Point Energy Corp	292,022		5,992
	$		8,823	Exxon Mobil Corp	93,419		7,772
Computers - 4.35%				Marathon Oil Corp	206,592		5,483
Accenture PLC - Class A	13,380		1,295	Marathon Petroleum Corp	213,134		11,149
Apple Inc	123,529		15,494	Occidental Petroleum Corp	130,764		10,170
EMC Corp/MA	234,058		6,177	Royal Dutch Shell PLC - B shares ADR	146,200		8,385
International Business Machines Corp	16,885		2,746		$		59,841
	$		25,712	Pharmaceuticals - 11.22%
Distribution & Wholesale - 0.77%				Abbott Laboratories	207,732		10,196
Genuine Parts Co	50,956		4,562	AbbVie Inc	28,592		1,921
				GlaxoSmithKline PLC ADR	46,520		1,938
				Johnson & Johnson	62,682		6,109
Diversified Financial Services - 5.75%				Merck & Co Inc	199,529		11,359
BlackRock Inc	31,953		11,055	Novartis AG ADR	69,023		6,788
Discover Financial Services	172,757		9,954	Pfizer Inc	313,894		10,525
FNF Group	349,852		12,941	Roche Holding AG ADR	267,333		9,375
	$		33,950	Teva Pharmaceutical Industries Ltd ADR	136,370		8,059
Electric - 4.49%					$		66,270
Eversource Energy	144,553		6,564	Pipelines -2.99%
NextEra Energy Inc	56,748		5,563	Enterprise ProductsPartners LP	228,369		6,826
WEC Energy Group Inc	144,063		6,479	Kinder Morgan Inc/DE	282,220		10,834
Xcel Energy Inc	246,499		7,932		$		17,660
	$		26,538
				Private Equity - 1.48%
Electrical Components & Equipment - 0.47%				KKR & Co LP	382,254		8,734
Emerson Electric Co	50,462		2,797
				REITS - 3.94%
Electronics - 1.23%				American Capital Agency Corp	280,598		5,155
Garmin Ltd	59,172		2,600	Annaly Capital Management Inc	616,906		5,669
Honeywell International Inc	45,633		4,653	Digital Realty Trust Inc	186,969		12,467
	$		7,253		$		23,291
Food - 2.34%				Retail - 2.16%
Kraft Foods Group Inc	49,725		4,234	Costco Wholesale Corp	26,205		3,539
Kroger Co/The	132,150		9,582	Starbucks Corp	127,920		6,859
	$		13,816	Tiffany & Co	25,821		2,370
					$		12,768

See accompanying notes.

151

				Schedule of Investments
				Equity Income Account
				June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held	Value (000			's)
Semiconductors - 4.86%
Applied Materials Inc	376,494		$	7,236
Maxim Integrated Products Inc	155,842			5,388
Microchip Technology Inc	199,524			9,463
Taiwan Semiconductor Manufacturing Co Ltd	291,715			6,625
ADR
		$		28,712
Software - 0.87%
Microsoft Corp	116,029			5,123
Telecommunications - 2.29%
BCE Inc	184,387			7,837
Verizon Communications Inc	121,607			5,668
		$		13,505
Toys, Games & Hobbies - 1.98%
Hasbro Inc	156,030			11,669
Transportation - 2.03%
Norfolk Southern Corp	51,678			4,515
Union Pacific Corp	43,895			4,186
United Parcel Service Inc	33,747			3,270
		$		11,971
TOTAL COMMON STOCKS		$		578,296
INVESTMENT COMPANIES - 1.62%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 1.62%
BlackRock Liquidity Funds FedFund Portfolio	9,560,927			9,561
TOTAL INVESTMENT COMPANIES		$		9,561
Total Investments		$		587,857
Other Assets in Excess of Liabilities, Net - 0.47%		$		2,763
TOTAL NET ASSETS - 100.00%		$		590,620
(a) Non-Income Producing Security
Portfolio Summary (unaudited)
Sector				Percent
Financial				27.15	%
Consumer, Non-cyclical				16.26	%
Energy				13.12	%
Industrial				10.46	%
Consumer, Cyclical				10.20	%
Technology				10.08	%
Utilities				5.59	%
Communications				2.69	%
Basic Materials				2.36	%
Exchange Traded Funds				1.62	%
Other Assets in Excess of Liabilities, Net				0.47	%
TOTAL NET ASSETS				100.00	%

See accompanying notes.

152

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 0.80%			Shares Held                      Value (000's)						Principal
							BONDS (continued)			Amount (000's)      Value (000's)
	Publicly Traded Investment Fund - 0.80%
	BlackRock Liquidity Funds FedFund Portfolio			2,427,094	$	2,428	Mortgage Backed Securities (continued)
							Ginnie Mae (continued)
	TOTAL INVESTMENT COMPANIES			$		2,428	0.97%, 02/16/2055(a)		$	25,787	$	1,223
							0.98%, 09/16/2053(a)			14,036		941
				Principal			1.01%, 10/16/2056(a)			6,987		628
	BONDS - 31.87	%	Amount (000's)                    Value (000's)				1.06%, 09/16/2053(a)			12,469		597
	Home Equity Asset Backed Securities - 1.58%						1.29%, 03/16/2049(a)			32,402		2,098
	ACE Securities Corp Mortgage Loan Trust						2.27%, 03/16/2046(a)			1,624		1,617
	Series 2007-D1						2.30%, 08/16/2041			1,912		1,951
	6.34%, 02/25/2038(a),(b)		$	3,300	$	3,203	3.00%, 09/16/2049			350		321
	6.93%, 02/25/2038(b)			1,612		1,606	3.48%, 07/16/2045(a)			1,877		1,952
				$		4,809	3.50%, 12/20/2034(a)			6,795		469
							3.50%, 05/20/2039			466		486
	Mortgage Backed Securities - 30.04%						3.50%, 05/20/2043(a)			7,590		1,513
	CFCRE Commercial Mortgage Trust 2011-
	C1						3.50%, 04/16/2044			605		588
	5.72%, 04/15/2044(a),(b)			1,000		1,104	GS Mortgage Securities Trust 2011-GC5
							5.47%, 08/10/2044(a),(b)			900		930
	Citigroup Mortgage Loan Trust 2009-11
	1.53%, 10/25/2035(a),(b)			133		133	JP Morgan Chase Commercial Mortgage
	Citigroup Mortgage Loan Trust 2010-10						Securities Trust 2011-C5
	2.44%, 02/25/2036(a),(b)			1,400		1,365	5.50%, 08/15/2046(a),(b)			2,000		2,257
	Citigroup Mortgage Loan Trust 2010-9						JP Morgan Chase Commercial Mortgage
	4.25%, 01/25/2036(b)			1,877		1,919	Securities Trust 2013-C10
							3.37%, 12/15/2047(a)			1,200		1,209
	COMM 2014-UBS4 Mortgage Trust
	4.78%, 08/10/2047(a)			1,000		975	JP Morgan Chase Commercial Mortgage
	Fannie Mae Grantor Trust 2005-T1						Securities Trust 2013-C16
	0.53%, 05/25/2035(a)			450		440	5.11%, 12/15/2046(a)			1,800		1,964
	Fannie Mae REMICS						JP Morgan Mortgage Trust 2013-1
	2.00%, 02/25/2040(a)			1,658		1,639	3.00%, 03/25/2043(b)			1,716		1,671
	2.50%, 11/25/2041			1,203		1,202	JPMBB Commercial Mortgage Securities
	3.00%, 04/25/2045			1,008		897	Trust 2014-C25
	3.50%, 01/25/2028(a)			5,716		698	4.60%, 11/15/2047(a)			1,000		1,001
	3.50%, 01/25/2040(a)			6,408		1,057	New Residential Mortgage Loan Trust 2014-
	3.50%, 11/25/2042(a)			6,633		1,451	1
							5.00%, 01/25/2054(a),(b)			1,896		2,025
	4.00%, 12/25/2039			3,423		457
	4.00%, 11/25/2042(a)			3,428		902	New Residential Mortgage Loan Trust 2014-
	7.00%, 04/25/2032			263		302	3
							4.75%, 11/25/2054(a),(b)			1,345		1,403
	8.70%, 12/25/2019			3		3
	Freddie Mac REMICS						Sequoia Mortgage Trust
	1.50%, 04/15/2028			2,291		2,254	2.50%, 11/25/2042			1,886		1,798
	2.50%, 11/15/2028(a)			7,513		684	Sequoia Mortgage Trust 2013-2
							3.66%, 02/25/2043(a)			861		871
	2.50%, 11/15/2032			1,757		1,720
	2.50%, 01/15/2043(a)			4,346		725	Springleaf Mortgage Loan Trust 2013-3
							3.79%, 09/25/2057(a),(b)			1,000		1,006
	2.50%, 02/15/2043			1,664		1,629
	3.00%, 11/15/2030(a)			5,608		534	Structured Asset Sec Corp Mort Pass Through
	3.00%, 05/15/2033			2,700		2,630	Certs Series 2004-3
	3.00%, 06/15/2033(a)			9,729		932	5.67%, 03/25/2034(a)			708		738
	3.00%, 06/15/2040			934		957	WFRBS Commercial Mortgage Trust 2013-
	3.50%, 08/15/2040(a)			6,024		916	C14
							4.13%, 06/15/2046(a),(b)			1,000		923
	4.00%, 05/15/2039			4,200		4,384
	4.00%, 10/15/2040			3,000		3,122	WFRBS Commercial Mortgage Trust 2014-
	4.50%, 05/15/2037(a)			1,110		1,168	C23
							4.52%, 10/15/2057(a)			1,000		1,040
	Freddie Mac Strips
	1.86%, 10/15/2037(a)			21,053		1,574	WFRBS Commercial Mortgage Trust 2014-
	1.89%, 02/15/2038(a)			17,734		1,361	LC14
	3.00%, 12/15/2032(a)			10,352		1,439	4.34%, 03/15/2047(a)			2,450		2,440
	Ginnie Mae									$		91,327
	0.23%, 04/16/2053(a)			10,780		315	Other Asset Backed Securities- 0.25%
	0.53%, 01/16/2054(a)			20,561		1,036	Chase Funding Trust Series 2004-1
	0.68%, 05/16/2053(a)			12,193		734	0.65%, 12/25/2033(a)			98		91
	0.70%, 03/16/2049(a)			8,555		383	TAL Advantage V LLC
	0.71%, 04/16/2047(a)			16,286		927	3.33%, 05/20/2039(a),(b)			651		655
	0.74%, 11/16/2045(a)			26,368		1,491				$		746
	0.77%, 12/16/2053(a)			15,661		925
	0.78%, 02/16/2053(a)			22,406		1,334	TOTAL BONDS			$		96,882
	0.79%, 04/16/2053(a)			7,528		412	U.S. GOVERNMENT & GOVERNMENT			Principal
	0.86%, 11/16/2052(a)			17,845		1,221	AGENCY OBLIGATIONS - 66.90%			Amount (000's)   Value (000's)
	0.86%, 10/16/2054(a)			14,929		777
	0.88%, 02/16/2053(a)			15,264		1,049	Federal Home Loan Mortgage Corporation (FHLMC) - 15.15	%
	0.88%, 02/16/2053(a)			21,535		1,568	2.00%, 02/01/2028		$	1,971	$	1,961
	0.89%, 03/16/2052(a)			8,539		661	2.00%, 03/01/2028			503		500
							2.35%, 09/01/2032(a)			28		29
	0.94%, 01/16/2053(a)			9,557		725
	0.96%, 02/16/2046(a)			13,372		864	2.50%, 09/01/2027			726		741
	0.96%, 01/16/2057(a)			8,075		672	2.50%, 02/01/2028			1,442		1,474

See accompanying notes.

153

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)    Value (000's)			AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)					Federal Home Loan Mortgage Corporation (FHLMC)
(continued)					(continued)
2.50%, 03/01/2030	$	969	$	981	6.50%, 09/01/2028	$	10	$	12
3.00%, 02/01/2027		564		585	6.50%, 10/01/2028		38		44
3.00%, 08/01/2042		1,197		1,192	6.50%, 11/01/2028		8		9
3.00%, 10/01/2042		837		834	6.50%, 12/01/2028		18		21
3.00%, 10/01/2042		1,528		1,524	6.50%, 03/01/2029		8		9
3.00%, 10/01/2042		1,613		1,608	6.50%, 07/01/2031		69		79
3.00%, 05/01/2043		1,687		1,682	6.50%, 08/01/2031		6		7
3.50%, 02/01/2032		2,368		2,471	6.50%, 10/01/2031		9		10
3.50%, 04/01/2042		670		691	6.50%, 10/01/2031		19		22
3.50%, 04/01/2042		2,736		2,822	6.50%, 12/01/2031		34		39
3.50%, 05/01/2042		949		980	6.50%, 01/01/2032		117		139
3.50%, 07/01/2042		3,350		3,457	6.50%, 02/01/2032		30		35
3.50%, 09/01/2042		1,571		1,620	6.50%, 05/01/2032		74		86
3.50%, 10/01/2042		951		982	6.50%, 04/01/2035		11		12
3.50%, 02/01/2044		1,392		1,437	7.00%, 09/01/2023		13		14
4.00%, 12/01/2040		669		712	7.00%, 12/01/2023		6		7
4.00%, 07/01/2042		1,243		1,329	7.00%, 01/01/2024		7		8
4.00%, 01/01/2043		1,972		2,095	7.00%, 09/01/2027		8		9
4.00%, 06/01/2043		2,236		2,378	7.00%, 01/01/2028		64		72
4.50%, 08/01/2033		92		100	7.00%, 04/01/2028		36		43
4.50%, 07/01/2039		1,340		1,462	7.00%, 05/01/2028		5		6
4.50%, 12/01/2040		1,384		1,499	7.00%, 08/01/2028		12		12
4.50%, 05/01/2041		1,327		1,448	7.00%, 10/01/2031		15		17
4.50%, 11/01/2043		1,697		1,869	7.00%, 10/01/2031		22		26
5.00%, 10/01/2025		326		358	7.00%, 04/01/2032		107		129
5.00%, 02/01/2033		399		443	7.50%, 10/01/2030		17		21
5.00%, 06/01/2033		312		348	7.50%, 02/01/2031		12		14
5.00%, 05/01/2035		150		166	7.50%, 02/01/2031		7		8
5.00%, 07/01/2035		70		77	7.50%, 02/01/2031		15		19
5.00%, 07/01/2035		30		33	8.00%, 10/01/2030		29		34
5.00%, 07/01/2035		243		269	8.00%, 12/01/2030		2		2
5.00%, 10/01/2035		115		127	8.50%, 07/01/2029		33		37
5.50%, 04/01/2018		42		43			$		46,045
5.50%, 03/01/2024		17		19
5.50%, 03/01/2033		276		311	Federal National Mortgage Association (FNMA) - 33.91%
5.50%, 04/01/2038		28		32	2.00%, 10/01/2027		1,854		1,842
5.50%, 05/01/2038		105		118	2.00%, 10/01/2027		728		724
					2.16%, 12/01/2032(a)		49		51
6.00%, 04/01/2017		15		16	2.25%, 12/01/2033(a)		219		234
6.00%, 04/01/2017		20		21	2.26%, 07/01/2034(a)		72		77
6.00%, 05/01/2017		17		18
6.00%, 07/01/2017		11		11	2.50%, 05/01/2027		1,926		1,964
6.00%, 12/01/2023		9		10	2.50%, 06/01/2027		2,276		2,321
6.00%, 05/01/2031		24		27	2.50%, 06/01/2027		1,812		1,848
6.00%, 12/01/2031		30		34	2.50%, 05/01/2028		1,152		1,174
6.00%, 09/01/2032		31		35	2.50%, 07/01/2028		856		861
6.00%, 11/01/2033		77		89	3.00%, 05/01/2028		1,509		1,568
6.00%, 11/01/2033		85		96	3.00%, 05/01/2029		1,739		1,809
6.00%, 05/01/2034		414		464	3.00%, 10/01/2042		2,446		2,450
6.00%, 05/01/2034		220		251	3.00%, 11/01/2042		2,649		2,654
6.00%, 09/01/2034		122		139	3.00%, 11/01/2042		840		840
6.00%, 02/01/2035		117		134	3.00%, 02/01/2043		1,688		1,690
6.00%, 10/01/2036(a)		127		145	3.00%, 02/01/2043		1,745		1,748
6.00%, 03/01/2037		96		110	3.00%, 04/01/2043		1,565		1,566
6.00%, 01/01/2038(a)		60		67	3.00%, 04/01/2045		992		990
6.00%, 01/01/2038		193		220	3.50%, 02/01/2042		1,862		1,931
6.00%, 04/01/2038		97		110	3.50%, 09/01/2042		3,249		3,361
6.50%, 11/01/2016		5		5	3.50%, 11/01/2042		2,273		2,353
6.50%, 06/01/2017		25		26	3.50%, 12/01/2042		2,320		2,402
6.50%, 06/01/2018		6		6	3.50%, 02/01/2043		834		865
6.50%, 08/01/2021		5		6	3.50%, 11/01/2044		967		1,003
6.50%, 12/01/2021		36		42	3.50%, 03/01/2045		982		1,019
6.50%, 04/01/2022		41		47	3.50%, 03/01/2045		2,362		2,447
6.50%, 05/01/2022		28		32	4.00%, 01/01/2034		1,095		1,173
6.50%, 05/01/2023		20		21	4.00%, 11/01/2040		1,131		1,205
6.50%, 04/01/2024		8		9	4.00%, 12/01/2040		959		1,022
6.50%, 04/01/2026		6		7	4.00%, 01/01/2041		2,138		2,279
6.50%, 05/01/2026		4		5	4.00%, 02/01/2041		1,914		2,039
6.50%, 05/01/2026		6		7	4.00%, 02/01/2041		2,522		2,696
6.50%, 12/01/2027		7		8	4.00%, 03/01/2041		2,584		2,747
6.50%, 01/01/2028		9		10	4.00%, 04/01/2041		2,081		2,219
6.50%, 03/01/2028		6		6	4.00%, 11/01/2041		1,052		1,117
6.50%, 09/01/2028		2		2	4.00%, 02/01/2042		1,562		1,670

See accompanying notes.

154

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT			Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)           Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's)       Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
4.00%, 04/01/2042	$	1,193	$	1,269	6.50%, 08/01/2025		$	36	$	39
4.00%, 08/01/2043		877		939	6.50%, 02/01/2026			9		10
4.00%, 10/01/2043		856		911	6.50%, 03/01/2026			2		3
4.00%, 10/01/2043		783		838	6.50%, 05/01/2026			6		6
4.00%, 08/01/2044		938		1,005	6.50%, 06/01/2026			4		4
4.00%, 10/01/2044		2,912		3,090	6.50%, 07/01/2028			12		14
4.50%, 12/01/2019		51		53	6.50%, 09/01/2028			20		23
4.50%, 01/01/2020		198		207	6.50%, 02/01/2029			5		5
4.50%, 08/01/2039		838		921	6.50%, 03/01/2029			11		13
4.50%, 09/01/2039		1,363		1,487	6.50%, 04/01/2029			5		6
4.50%, 03/01/2042		847		927	6.50%, 06/01/2031			11		12
4.50%, 09/01/2043		1,337		1,474	6.50%, 06/01/2031			12		14
4.50%, 09/01/2043		3,120		3,440	6.50%, 09/01/2031			18		21
4.50%, 10/01/2043		1,657		1,824	6.50%, 01/01/2032			4		5
4.50%, 11/01/2043		1,825		2,012	6.50%, 04/01/2032			75		86
4.50%, 05/01/2044		1,907		2,066	6.50%, 08/01/2032			23		27
4.50%, 09/01/2044		965		1,064	6.50%, 11/01/2032			34		38
5.00%, 01/01/2018		102		107	6.50%, 11/01/2032			37		40
5.00%, 11/01/2018		88		93	6.50%, 02/01/2033			50		57
5.00%, 05/01/2033		2,383		2,682	6.50%, 07/01/2034			149		175
5.00%, 05/01/2034		428		474	6.50%, 12/01/2036			91		104
5.00%, 04/01/2035		261		291	6.50%, 07/01/2037			63		74
5.00%, 04/01/2035		193		216	6.50%, 07/01/2037			47		56
5.00%, 07/01/2035		13		14	6.50%, 02/01/2038			47		56
5.00%, 02/01/2038		641		720	7.00%, 01/01/2027			4		4
5.00%, 03/01/2038		955		1,073	7.00%, 11/01/2027			8		9
5.00%, 02/01/2040		2,682		3,033	7.00%, 08/01/2028			31		36
5.00%, 06/01/2040		755		838	7.00%, 12/01/2028			24		28
5.00%, 07/01/2041		1,257		1,404	7.00%, 10/01/2029			33		37
5.00%, 07/01/2041		2,081		2,353	7.00%, 05/01/2031			5		5
5.50%, 08/01/2017		24		25	7.00%, 11/01/2031			58		62
5.50%, 12/01/2017		31		32	7.50%, 04/01/2022			1		2
5.50%, 01/01/2018		55		57	7.50%, 11/01/2029			15		17
5.50%, 07/01/2019		44		47	8.00%, 05/01/2027			28		30
5.50%, 08/01/2019		10		10	8.00%, 09/01/2027			12		12
5.50%, 08/01/2019		83		87	8.00%, 06/01/2030			4		5
5.50%, 08/01/2019		10		11	8.50%, 10/01/2027			34		35
5.50%, 08/01/2019		21		22	9.00%, 09/01/2030			9		11
5.50%, 08/01/2019		11		12				$		103,091
5.50%, 08/01/2019		14		15
5.50%, 09/01/2019		59		62	Government National Mortgage Association (GNMA) - 7.99	%
5.50%, 10/01/2019		22		23	3.00%, 04/15/2027			1,193		1,250
5.50%, 05/01/2024		76		85	3.00%, 11/15/2042			1,691		1,713
5.50%, 05/01/2033		36		40	3.00%, 12/15/2042			3,270		3,312
5.50%, 06/01/2033		147		165	3.00%, 02/15/2043			2,486		2,529
5.50%, 06/01/2033		125		141	3.50%, 12/20/2041			1,793		1,866
5.50%, 09/01/2033		674		769	3.50%, 01/15/2043			2,017		2,105
5.50%, 02/01/2037		16		18	3.50%, 06/20/2043			1,308		1,370
5.50%, 03/01/2038		357		405	4.00%, 03/20/2040			1,735		1,850
5.50%, 03/01/2038		233		266	4.00%, 08/15/2041			1,756		1,899
5.50%, 08/01/2038		198		226	4.50%, 07/15/2040			1,532		1,678
6.00%, 08/01/2016		2		2	5.00%, 09/15/2033			11		12
6.00%, 12/01/2016		22		22	5.00%, 02/15/2034			647		722
6.00%, 08/01/2017		38		39	5.00%, 09/15/2039			101		114
6.00%, 06/01/2022		42		48	5.50%, 07/20/2033			290		331
6.00%, 11/01/2028		23		26	5.50%, 11/15/2033			58		66
6.00%, 08/01/2031		81		92	5.50%, 03/20/2034			309		353
6.00%, 12/01/2031		20		23	5.50%, 05/20/2035			277		316
6.00%, 01/01/2033		122		140	5.50%, 11/15/2038			351		403
6.00%, 02/01/2034		54		62	5.50%, 01/15/2039			520		596
6.00%, 05/01/2037		392		440	5.50%, 01/15/2039			118		135
6.00%, 07/01/2037		331		377	5.50%, 03/15/2039			249		280
6.00%, 11/01/2037		58		66	6.00%, 06/20/2024			56		64
6.00%, 12/01/2037		20		23	6.00%, 06/20/2024			9		11
6.00%, 03/01/2038		143		164	6.00%, 02/20/2026			6		7
6.00%, 08/01/2038		791		908	6.00%, 04/20/2026			11		12
6.50%, 06/01/2016		5		5	6.00%, 05/20/2026			6		6
6.50%, 08/01/2017		18		18	6.00%, 06/20/2026			7		8
6.50%, 11/01/2023		70		80	6.00%, 06/20/2026			11		13
6.50%, 05/01/2024		24		27	6.00%, 07/20/2026			5		6
6.50%, 09/01/2024		26		30
6.50%, 07/01/2025		14		16

See accompanying notes.

155

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT	Principal				Portfolio Summary (unaudited)
AGENCY OBLIGATIONS (continued)	Amount (000's)      Value (000's)				Sector	Percent
Government National Mortgage Association (GNMA)					Mortgage Securities	87.09	%
(continued)					Government	9.85	%
6.00%, 09/20/2026	$	10	$	11	Asset Backed Securities	1.83	%
6.00%, 03/20/2027		23		27	Exchange Traded Funds	0.80	%
6.00%, 01/20/2028		7		8	Other Assets in Excess of Liabilities, Net	0.43	%
6.00%, 03/20/2028		5		5	TOTAL NET ASSETS	100.00	%
6.00%, 06/20/2028		28		32
6.00%, 07/20/2028		18		20
6.00%, 02/20/2029		17		20
6.00%, 03/20/2029		33		37
6.00%, 07/20/2029		34		39
6.00%, 05/20/2032(a)		59		67
6.00%, 07/20/2033		226		263
6.50%, 12/20/2025		15		17
6.50%, 01/20/2026		23		24
6.50%, 02/20/2026		15		17
6.50%, 03/20/2031		21		24
6.50%, 04/20/2031		22		26
7.00%, 01/15/2028		3		3
7.00%, 01/15/2028		5		6
7.00%, 01/15/2028		2		2
7.00%, 01/15/2028		10		12
7.00%, 01/15/2028		1		2
7.00%, 03/15/2028		110		119
7.00%, 05/15/2028		54		60
7.00%, 01/15/2029		18		20
7.00%, 03/15/2029		7		7
7.00%, 05/15/2031		15		18
7.00%, 06/20/2031		14		18
7.00%, 09/15/2031		42		49
7.00%, 06/15/2032		221		259
7.50%, 01/15/2023		1		1
7.50%, 01/15/2023		1		1
7.50%, 01/15/2023		1		1
7.50%, 02/15/2023		2		2
7.50%, 02/15/2023		2		3
7.50%, 04/15/2023		15		17
7.50%, 06/15/2023		1		1
7.50%, 07/15/2023		1		1
7.50%, 09/15/2023		4		4
7.50%, 09/15/2023		4		4
7.50%, 10/15/2023		7		8
7.50%, 11/15/2023		7		7
8.00%, 07/15/2026		2		2
8.00%, 08/15/2026		4		5
8.00%, 01/15/2027		1		2
8.00%, 02/15/2027		1		1
8.00%, 06/15/2027		1		1
		$		24,300
U.S. Treasury - 9.85%
2.25%, 11/30/2017		5,000		5,174
3.00%, 11/15/2044		3,800		3,717
3.13%, 05/15/2021		8,000		8,557
4.25%, 11/15/2040		3,200		3,873
5.25%, 11/15/2028		3,000		3,910
6.25%, 08/15/2023		3,600		4,699
		$		29,930
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS		$		203,366
Total Investments		$		302,676
Other Assets in Excess of Liabilities, Net - 0.43%		$		1,300
TOTAL NET ASSETS - 100.00%		$		303,976

(a)	Variable Rate. Rate shown is in effect at June 30, 2015.
(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 $20,200 or 6.65% of net assets.

See accompanying notes.

156

Schedule of Investments
Income Account
June 30, 2015 (unaudited)
	COMMON STOCKS - 0.00%		Shares Held		Value (000			's)			Principal
									BONDS (continued)		Amount (000's)     Value (000's)
	Computers - 0.00%
	SONICblue Inc (a),(b)			500,000		$	—		Banks (continued)
									Wells Fargo & Co
									7.98%, 12/31/2049(c)	$	2,000	$	2,168
	Transportation - 0.00%										$		21,680
	Trailer Bridge Inc (a),(b)			1,186			—
									Beverages - 1.16%
	TOTAL COMMON STOCKS				$		—		Anheuser-Busch InBev Worldwide Inc
	INVESTMENT COMPANIES - 5.40%		Shares Held		Value (000			's)	2.50%, 07/15/2022		750		721
									7.75%, 01/15/2019		1,000		1,187
	Publicly Traded Investment Fund - 5.40%								Innovation Ventures LLC / Innovation
	BlackRock Liquidity Funds FedFund Portfolio			14,879,932			14,880		Ventures Finance Corp
									9.50%, 08/15/2019(d)		1,250		1,300
	TOTAL INVESTMENT COMPANIES				$		14,880				$		3,208
				Principal
	BONDS - 60.75	%	Amount (000's)		Value (000			's)	Biotechnology - 1.34%
									Amgen Inc
	Aerospace & Defense - 0.42%								3.63%, 05/15/2022		500		510
	Boeing Co/The								3.88%, 11/15/2021		2,000		2,097
	8.75%, 08/15/2021		$	850		$	1,151		Gilead Sciences Inc
									4.40%, 12/01/2021		1,000		1,092
	Airlines - 0.08%										$		3,699
	Southwest Airlines Co 1994-A Pass Through								Chemicals 0.54%
	Trust								Airgas Inc
	9.15%, 07/01/2016			216			217		1.65%, 02/15/2018		1,000		995
									Eagle Spinco Inc
	Automobile Floor Plan Asset Backed Securities - 3.09%								4.63%, 02/15/2021		500		485
	Ally Master Owner Trust										$		1,480
	0.64%, 04/15/2018(c)			2,000			2,001
									Commercial Services - 0.84%
	CNH Wholesale Master Note Trust
	0.79%, 08/15/2019 (c),(d)			2,000			2,002		ERAC USA Finance LLC
									6.38%, 10/15/2017(d)		1,000		1,099
	Ford Credit Floorplan Master Owner Trust A								7.00%, 10/15/2037(d)		1,000		1,223
	0.57%, 01/15/2018(c)			1,000			1,000
	0.59%, 02/15/2019(c)			500			500				$		2,322
	Nissan Master Owner Trust Receivables								Computers - 0.61%
	0.49%, 02/15/2018(c)			1,000			1,000		Apple Inc
	Volkswagen Credit Auto Master Trust								2.40%, 05/03/2023		1,750		1,674
	0.54%, 07/22/2019(c),(d)			2,000			1,997
					$		8,500
									Credit Card Asset Backed Securities - 0.66%
	Automobile Manufacturers - 1.12%								Cabela's Credit Card Master Note Trust
	American Honda Finance Corp								0.54%, 03/16/2020(c)		1,325		1,325
	0.77%, 10/07/2016(c)			500			502		0.74%, 10/15/2019(c),(d)		500		502
	Ford Motor Credit Co LLC										$		1,827
	3.98%, 06/15/2016			2,000			2,047
	General Motors Co								Diversified Financial Services - 1.80%
	4.88%, 10/02/2023			500			527		General Electric Capital Corp
									1.29%, 03/15/2023(c)		1,000		1,005
					$		3,076		5.30%, 02/11/2021		500		562
	Banks - 7.87	%							International Lease Finance Corp
	Bank of America Corp								8.75%, 03/15/2017(c)		1,000		1,094
	5.42%, 03/15/2017			800			848		Jefferies Group LLC
	8.00%, 07/29/2049(c)			1,000			1,055		6.25%, 01/15/2036		1,425		1,413
	8.13%, 12/29/2049(c)			1,000			1,061		8.50%, 07/15/2019		750		891
	Citigroup Inc										$		4,965
	3.88%, 03/26/2025			1,000			958
	4.50%, 01/14/2022			1,000			1,077		Electric - 6.02%
	Goldman Sachs Group Inc/The								Exelon Generation Co LLC
	3.63%, 02/07/2016			500			508		6.20%, 10/01/2017		1,000		1,093
	5.38%, 03/15/2020			2,000			2,227		GenOn Americas Generation LLC
	ING Bank NV								8.50%, 10/01/2021		1,250		1,187
	5.00%, 06/09/2021(d)			1,000			1,116		GenOn Energy Inc
	JP Morgan Chase & Co								9.88%, 10/15/2020		750		763
	3.63%, 05/13/2024			1,000			993		LG&E and KU Energy LLC
	7.90%, 04/29/2049(c)			1,000			1,058		4.38%, 10/01/2021		1,000		1,085
	Morgan Stanley								Metropolitan Edison Co
									3.50%, 03/15/2023(d)		1,000		985
	5.50%, 07/28/2021			1,000			1,128
	6.25%, 08/09/2026			850			1,019		Oncor Electric Delivery Co LLC
	PNC Financial Services Group Inc/The								7.00%, 09/01/2022		2,000		2,461
	6.75%, 07/29/2049(c)			2,000			2,215		PacifiCorp
	SunTrust Bank/Atlanta GA								5.25%, 06/15/2035		850		946
	2.75%, 05/01/2023			1,000			962		6.25%, 10/15/2037		500		624
	US Bancorp/MN								Solar Star Funding LLC
									5.38%, 06/30/2035(d)		1,500		1,666
	1.65%, 05/15/2017			3,000			3,036
	3.60%, 09/11/2024			250			251		Southwestern Electric Power Co
									3.55%, 02/15/2022		1,000		1,031

See accompanying notes.

157

Schedule of Investments
Income Account
June 30, 2015 (unaudited)
				Principal						Principal
	BONDS (continued)			Amount (000's)       Value (000's)			BONDS (continued)			Amount (000's)  Value (000's)
	Electric (continued)						Lodging - 0.28%
	Talen Energy Supply LLC						Boyd Gaming Corp
	5.70%, 10/15/2035		$	2,000	$	2,000	6.88%, 05/15/2023		$	750	$	769
	TransAlta Corp
	4.50%, 11/15/2022			1,750		1,737
	Tucson Electric Power Co						Media - 2.60	%
							21st Century Fox America Inc
	3.85%, 03/15/2023			1,000		1,019	6.40%, 12/15/2035			1,000		1,183
				$		16,597	8.00%, 10/17/2016			1,000		1,085
	Electronics - 0.49%						Comcast Corp
	Corning Inc						6.45%, 03/15/2037			2,000		2,472
	4.75%, 03/15/2042			750		768	Historic TW Inc
	6.63%, 05/15/2019			500		580	9.15%, 02/01/2023			250		330
				$		1,348	Time Warner Cable Inc
							6.55%, 05/01/2037			1,500		1,562
	Entertainment - 0.19%						6.75%, 06/15/2039			500		534
	Greektown Holdings LLC/Greektown									$		7,166
	Mothership Corp
	8.88%, 03/15/2019(d)			250		263	Mining - 0.62%
	Peninsula Gaming LLC / Peninsula Gaming						Glencore Canada Corp
	Corp						6.00%, 10/15/2015			1,675		1,697
	8.38%, 02/15/2018(d)			250		260
				$		523	Oil & Gas - 6.10%
	Environmental Control - 0.93%						BG Energy Capital PLC
	ADS Waste Holdings Inc						4.00%, 10/15/2021(d)			2,000		2,122
	8.25%, 10/01/2020			1,500		1,552	BP Capital Markets PLC
	Republic Services Inc						3.25%, 05/06/2022			1,000		1,003
	3.55%, 06/01/2022			1,000		1,013	4.75%, 03/10/2019			2,000		2,188
				$		2,565	Linn Energy LLC / Linn Energy Finance
							Corp
	Food - 0.18	%					6.50%, 05/15/2019			1,000		808
	HJ Heinz Co						Nabors Industries Inc
	3.95%, 07/15/2025(d),(e)			500		503	5.00%, 09/15/2020			1,000		1,041
							Petro-Canada
	Forest Products & Paper - 0.78%						9.25%, 10/15/2021			1,075		1,430
	Plum Creek Timberlands LP						Phillips 66
	4.70%, 03/15/2021			2,000		2,141	4.30%, 04/01/2022			1,000		1,049
							Rowan Cos Inc
							4.88%, 06/01/2022			750		745
	Healthcare - Services - 1.56%						5.00%, 09/01/2017			2,000		2,064
	HCA Inc						W&T Offshore Inc
	7.50%, 11/06/2033			250		271	8.50%, 06/15/2019			2,500		1,734
	HealthSouth Corp						Whiting Petroleum Corp
	5.75%, 11/01/2024			500		511	5.75%, 03/15/2021			1,250		1,230
	7.75%, 09/15/2022			740		773	XTO Energy Inc
	Roche Holdings Inc						6.75%, 08/01/2037			1,000		1,395
	0.61%, 09/30/2019(c),(d)			2,000		1,999				$		16,809
	Vantage Oncology LLC / Vantage Oncology
	Finance Co						Oil & Gas Services - 1.53%
	9.50%, 06/15/2017(d)			750		731	Exterran Partners LP / EXLP Finance Corp
				$		4,285	6.00%, 04/01/2021			2,000		1,930
							Weatherford International Ltd/Bermuda
	Insurance - 2.56%						4.50%, 04/15/2022			250		235
	Fidelity National Financial Inc						5.13%, 09/15/2020			2,000		2,038
	6.60%, 05/15/2017			2,500		2,705				$		4,203
	First American Financial Corp
	4.30%, 02/01/2023			2,000		1,982	Other Asset Backed Securities - 1.39%
	Prudential Financial Inc						Drug Royalty II LP 2
	7.38%, 06/15/2019			1,000		1,186	3.48%, 07/15/2023  (c),(d)			1,813		1,839
	8.88%, 06/15/2068(c)			1,000		1,170	PFS Financing Corp
				$		7,043	0.74%, 02/15/2018(c),(d)			1,000		999
							0.81%, 04/15/2020(c),(d)			1,000		1,000
	Iron & Steel - 1.50%									$		3,838
	Allegheny Technologies Inc
	5.95%, 01/15/2021			2,000		2,025	Packaging & Containers - 0.37%
	ArcelorMittal						Sealed Air Corp
	6.25%, 03/01/2021(c)			2,000		2,095	6.88%, 07/15/2033(d)			1,000		1,010
				$		4,120
	Leisure Products & Services - 1.04%						Pharmaceuticals - 0.97%
	Carnival Corp						AbbVie Inc
	7.20%, 10/01/2023			1,475		1,760	2.90%, 11/06/2022			1,000		968
	Royal Caribbean Cruises Ltd						Actavis Funding SCS
	7.25%, 03/15/2018			1,000		1,100	3.80%, 03/15/2025			1,000		983
				$		2,860

See accompanying notes.

158

Schedule of Investments
Income Account
June 30, 2015 (unaudited)
				Principal						Principal
	BONDS (continued)			Amount (000's)                          Value (000's)			CONVERTIBLE BONDS - 1.34%		Amount (000's)		Value (000			's)
	Pharmaceuticals (continued)						Automobile Parts & Equipment - 0.86%
	Actavis Funding SCS (continued)						Meritor Inc
	4.55%, 03/15/2035		$	750	$	713	7.88%, 03/01/2026		$	1,500		$	2,370
				$		2,664
	Pipelines - 2.82%						Pharmaceuticals - 0.48%
	ANR Pipeline Co						Omnicare Inc
	9.63%, 11/01/2021			1,000		1,318	3.25%, 12/15/2035			433			533
	Buckeye Partners LP						3.50%, 02/15/2044			538			768
	4.35%, 10/15/2024			500		490					$		1,301
	Columbia Pipeline Group Inc						TOTAL CONVERTIBLE BONDS				$		3,671
	4.50%, 06/01/2025(d)			1,000		984
										Principal
	El Paso Natural Gas Co LLC						SENIOR FLOATING RATE INTERESTS - 0.16	%	Amount (000's)		Value (000			's)
	7.50%, 11/15/2026			2,100		2,545
	Express Pipeline LLC						Transportation - 0.16%
	7.39%, 12/31/2019(d)			650		689	Trailer Bridge Inc, Term Loan
							10.00%, 04/02/2016 (b),(c),(f)		$	454		$	454
	Southeast Supply Header LLC
	4.25%, 06/15/2024(d)			750		740
	Southern Natural Gas Co LLC						TOTAL SENIOR FLOATING RATE INTERESTS				$		454
	8.00%, 03/01/2032			850		1,009	U.S. GOVERNMENT & GOVERNMENT			Principal
				$		7,775	AGENCY OBLIGATIONS - 32.61%		Amount (000's)		Value (000			's)
							Federal Home Loan Mortgage Corporation (FHLMC) -
	REITS - 5.67	%					6.07	%
	Alexandria Real Estate Equities Inc						3.00%, 10/01/2042		$	837		$	834
	4.60%, 04/01/2022			1,250		1,317	3.00%, 10/01/2042			1,698			1,693
	BioMed Realty LP						3.00%, 11/01/2042			827			824
	4.25%, 07/15/2022			1,000		1,013	3.00%, 12/01/2042			379			378
	6.13%, 04/15/2020			1,000		1,132	3.50%, 10/01/2041			1,008			1,040
	CubeSmart LP						3.50%, 04/01/2042			1,339			1,381
	4.80%, 07/15/2022			1,750		1,882	3.50%, 04/01/2042			2,160			2,228
	HCP Inc						4.00%, 02/01/2045			983			1,042
	3.75%, 02/01/2019			1,000		1,040	4.50%, 08/01/2033			341			370
	Health Care REIT Inc						4.50%, 05/01/2039			753			815
	6.13%, 04/15/2020			1,000		1,142	4.50%, 06/01/2039			440			479
	Hospitality Properties Trust						4.50%, 07/01/2039			1,463			1,597
	4.65%, 03/15/2024			750		748	4.50%, 12/01/2040			741			803
	5.00%, 08/15/2022			750		781	4.50%, 10/01/2041			880			953
	Kimco Realty Corp						5.00%, 08/01/2019			188			197
	6.88%, 10/01/2019			2,000		2,336	5.00%, 08/01/2035			958			1,054
	Simon Property Group LP						5.50%, 11/01/2017			31			32
	10.35%, 04/01/2019			2,000		2,541	5.50%, 01/01/2018			13			13
	Ventas Realty LP / Ventas Capital Corp						5.50%, 05/01/2031			43			48
	3.25%, 08/15/2022			1,750		1,690	5.50%, 06/01/2035			104			116
				$		15,622	5.50%, 01/01/2036			222			248
							5.50%, 04/01/2036			151			170
	Savings & Loans - 0.40%
	First Niagara Financial Group Inc						6.00%, 03/01/2031			27			30
	7.25%, 12/15/2021			1,000		1,114	6.00%, 05/01/2032			53			61
							6.00%, 06/01/2038			226			256
							6.50%, 06/01/2029			18			21
	Software - 0.70%						6.50%, 08/01/2029			22			25
	Oracle Corp						7.00%, 01/01/2032			13			13
	2.50%, 05/15/2022			1,000		971	9.00%, 01/01/2025			4			5
	2.95%, 05/15/2025			1,000		962					$		16,726
				$		1,933
							Federal National Mortgage Association (FNMA) - 15.58%
	Telecommunications - 0.80%						3.00%, 03/01/2042			1,491			1,493
	Qwest Corp						3.00%, 03/01/2042			1,455			1,457
	6.75%, 12/01/2021			2,000		2,207	3.00%, 05/01/2042			791			792
							3.00%, 06/01/2042			1,474			1,476
							3.00%, 06/01/2042			727			728
	Transportation - 0.97%
	Navios Maritime Holdings Inc / Navios						3.00%, 08/01/2042			754			755
	Maritime Finance II US Inc						3.50%, 12/01/2040			1,225			1,266
	7.38%, 01/15/2022(d)			500		433	3.50%, 12/01/2041			455			471
	Trailer Bridge Inc						3.50%, 03/01/2042			734			759
	0.00%, 11/15/2015(a),(b),(f)			2,000		—	3.50%, 04/01/2042			1,337			1,383
	16.00%, 03/31/2017 (b),(c),(f)			2,407		2,238	3.50%, 02/01/2043			897			927
				$		2,671	3.50%, 06/01/2043			1,390			1,437
							4.00%, 03/01/2039			971			1,029
	Trucking & Leasing - 0.75%						4.00%, 08/01/2040			805			856
	Penske Truck Leasing Co Lp / PTL Finance						4.00%, 09/01/2040			1,816			1,934
	Corp						4.00%, 11/01/2040			936			998
	3.75%, 05/11/2017(d)			2,000		2,069	4.00%, 10/01/2041			1,057			1,125
							4.00%, 10/01/2041			781			830
	TOTAL BONDS			$		167,331	4.00%, 11/01/2041			1,167			1,237

See accompanying notes.

159

Schedule of Investments
Income Account
June 30, 2015 (unaudited)

U.S. GOVERNMENT & GOVERNMENT		Principal					(c)	Variable Rate. Rate shown is in effect at June 30, 2015.
AGENCY OBLIGATIONS (continued)		Amount (000's)          Value (000's)					(d)	Security exempt from registration under Rule 144A of the Securities Act of
								1933. These securities may be resold in transactions exempt from
Federal National Mortgage Association (FNMA) (continued)
4.00%, 04/01/2042		$	668	$	711			registration, normally to qualified institutional buyers. At the end of the
4.00%, 11/01/2043			837		891			period, the value of these securities totaled $27,531 or 10.00% of net
4.00%, 11/01/2043			2,135		2,279			assets.
4.00%, 01/01/2044			1,915		2,038		(e)	Security purchased on a when-issued basis.
4.00%, 02/01/2044			2,565		2,733		(f)	Security is Illiquid. At the end of the period, the value of these securities
4.00%, 09/01/2044			882		935			totaled $2,692 or 0.98% of net assets.
4.50%, 06/01/2039			322		348
4.50%, 08/01/2039			376		406
4.50%, 05/01/2040			1,230		1,340			Portfolio Summary (unaudited)
4.50%, 08/01/2040			1,419		1,538		Sector		Percent
4.50%, 10/01/2040			1,357		1,471		Mortgage Securities		21.69	%
4.50%, 12/01/2040			787		857		Financial		18.30	%
4.50%, 08/01/2041			958		1,038		Government		10.92	%
4.50%, 05/01/2044			1,410		1,527		Energy		10.45	%
5.00%, 01/01/2018			50		53		Consumer, Non-cyclical		6.53	%
5.00%, 08/01/2035			452		499		Utilities		6.02	%
5.00%, 04/01/2039			266		295		Exchange Traded Funds		5.40	%
5.00%, 12/01/2039			300		332		Asset Backed Securities		5.14	%
5.00%, 04/01/2040			801		892		Industrial		4.09	%
5.00%, 06/01/2040			693		772		Consumer, Cyclical		3.57	%
5.50%, 03/01/2033			53		59		Basic Materials		3.44	%
5.50%, 06/01/2033			216		243		Communications		3.40	%
5.50%, 02/01/2035			431		488		Technology		1.31	%
6.00%, 04/01/2032			56		64		Liabilities in Excess of Other Assets, Net		(0.26	)%
6.50%, 05/01/2031			6		6		TOTAL NET ASSETS		100.00	%
6.50%, 04/01/2032			85		98
6.50%, 05/01/2032			33		38
7.00%, 01/01/2030			2		2
			$		42,906
Government National Mortgage Association (GNMA) -
0.04	%
6.00%, 05/20/2032(c)			50		58
7.00%, 06/20/2031			53		64
9.00%, 02/15/2025			3		4
			$		126
U.S. Treasury - 10.92%
0.75%, 10/31/2017			1,000		999
0.88%, 02/28/2017			1,000		1,005
1.38%, 11/30/2018			1,000		1,008
1.63%, 11/15/2022			2,000		1,933
1.75%, 05/15/2022			2,000		1,961
2.00%, 11/15/2021			2,000		2,004
2.38%, 05/31/2018			1,000		1,040
2.50%, 05/15/2024			1,000		1,017
2.63%, 11/15/2020			2,000		2,089
2.75%, 02/15/2019			1,000		1,053
2.75%, 02/15/2024			1,000		1,038
2.88%, 05/15/2043			1,000		953
3.00%, 11/15/2044			1,000		978
3.13%, 05/15/2019			2,000		2,134
3.13%, 05/15/2021			1,000		1,070
3.13%, 08/15/2044			1,000		1,002
3.38%, 05/15/2044			1,000		1,050
3.50%, 02/15/2039			1,000		1,078
3.63%, 02/15/2020			2,000		2,184
3.63%, 02/15/2044			1,000		1,100
3.75%, 08/15/2041			1,000		1,123
3.75%, 11/15/2043			2,000		2,250
			$		30,069
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS			$		89,827
Total Investments			$		276,163
Liabilities in Excess of Other Assets, Net - (0.26)%			$		(718	)
TOTAL NET ASSETS - 100.00%			$		275,445

(a)	Non-Income Producing Security
(b)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $2,692 or 0.98% of net assets.

See accompanying notes.

160

Schedule of Investments
International Emerging Markets Account
June 30, 2015 (unaudited)
COMMON STOCKS - 95.69%	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Advertising - 0.76%				Diversified Financial Services (continued)
Multiplus SA	19,400	$	234	Fubon Financial Holding Co Ltd	827,000	$	1,644
Smiles SA	33,295		564	KB Financial Group Inc	35,681		1,178
	$		798	Mega Financial Holding Co Ltd	1,524,484		1,373
				Rural Electrification Corp Ltd	100,917		436
Agriculture - 1.45%					$		4,947
Bunge Ltd	8,443		741
KT&G Corp	9,141		777	Electric - 4.09%
	$		1,518	China Power International Development Ltd	932,000		710
				Huadian Power International Corp Ltd	1,115,119		1,232
Airlines - 2.40%				Huaneng Power International Inc	388,000		540
Air China Ltd	636,000		718	JSW Energy Ltd	285,108		439
Cathay Pacific Airways Ltd	214,000		526	Korea Electric Power Corp	33,066		1,351
Korean Air Lines Co Ltd (a)	20,532		745
Turk Hava Yollari AO (a)	156,308		513		$		4,272
	$		2,502	Electronics - 3.33%
				FLEXium Interconnect Inc	125,000		506
Apparel - 0.86%				Hon Hai Precision Industry Co Ltd	463,354		1,456
Feng TAY Enterprise Co Ltd	82,600		480	Hu Lane Associate Inc	94,000		420
Makalot Industrial Co Ltd	49,000		421	Pegatron Corp	221,000		647
	$		901	Zhen Ding Technology Holding Ltd	127,000		445
Automobile Manufacturers - 2.34%					$		3,474
Ashok Leyland Ltd	532,653		606	Engineering & Construction - 1.77%
Hyundai Motor Co	3,484		424	Grupo Aeroportuario del Pacifico SAB de CV	82,400		564
Kia Motors Corp	9,343		379	Grupo Aeroportuario del Sureste SAB de CV	51,258		728
Maruti Suzuki India Ltd (b)	15,753		1,035	Promotora y Operadora de Infraestructura	52,308		560
	$		2,444	SAB de CV (a)
Banks - 13.27%					$		1,852
Abu Dhabi Commercial Bank PJSC	245,992		512	Food - 2.29%
Axis Bank Ltd	124,689		1,093	Gruma SAB de CV	81,000		1,045
Banco de Chile	5,134,658		563	JBS SA	165,225		870
Bank Negara Indonesia Persero Tbk PT	1,295,300		514	Thai Union Frozen Products PCL (b)	734,400		473
Bank of China Ltd	1,597,800		1,037		$		2,388
Barclays Africa Group Ltd	60,941		916
China Construction Bank Corp	2,929,902		2,673	Forest Products & Paper - 0.59%
Credicorp Ltd	4,645		645	Mondi PLC	28,764		619
FirstRand Ltd	330,736		1,449
Grupo Financiero Inbursa SAB de CV	135,200		307	Gas - 0.32%
Industrial & Commercial Bank of China Ltd	1,594,000		1,265	Korea Gas Corp	8,620		334
Industrial Bank of Korea	57,120		739
Turkiye Halk Bankasi AS	101,914		469
Turkiye Is Bankasi	254,870		536	Healthcare - Services - 0.35%
Yes Bank Ltd	86,156		1,140	Netcare Ltd	117,651		370
	$		13,858
Beverages - 0.33%				Holding Companies - Diversified - 0.31%
Arca Continental SAB de CV	61,100		347	AVI Ltd	47,689		319
Biotechnology - 0.42%				Home Builders - 0.48%
China Biologic Products Inc (a)	3,786		436	Hyundai Development Co-Engineering &	8,500		504
				Construction
Chemicals - 1.66%
Kumho Petrochemical Co Ltd	4,114		261	Home Furnishings - 0.68%
Lotte Chemical Corp	1,751		453	Steinhoff International Holdings Ltd	112,137		710
UPL Ltd	121,112		1,017
	$		1,731	Insurance - 5.62%
Commercial Services - 0.84%				BB Seguridade Participacoes SA	75,000		826
TAL Education Group ADR (a)	10,897		384	China Taiping Insurance Holdings Co Ltd (a)	122,200		437
Zhejiang Expressway Co Ltd	356,000		494	PICC Property & Casualty Co Ltd	492,300		1,121
	$		878	Ping An Insurance Group Co of China Ltd	144,500		1,950
				Powszechny Zaklad Ubezpieczen SA	8,864		1,020
Computers - 1.52%				Sanlam Ltd	93,683		510
Innolux Corp	658,000		343		$		5,864
Lenovo Group Ltd	568,000		785
Tata Consultancy Services Ltd	11,451		459	Internet - 5.10%
				Alibaba Group Holding Ltd ADR(a)	6,830		562
	$		1,587	Com2uSCorp (a)	1,748		194
Cosmetics & Personal Care - 1.34%				Com2uSCorp - Rights (a),(b)	284		3
Amorepacific Corp	2,660		995	Tencent Holdings Ltd	178,000		3,559
LG Household & Health Care Ltd	582		403	Vipshop Holdings Ltd ADR(a)	45,137		1,004
	$		1,398		$		5,322
Diversified Financial Services - 4.74%
Far East Horizon Ltd	333,000		316

See accompanying notes.

161

Schedule of Investments
International Emerging Markets Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held       Value (000's)			COMMON STOCKS (continued)		Shares Held	Value (000			's)
Iron & Steel - 0.46%				Software - 0.68%
Hyundai Steel Co	7,945	$	482	HCL Technologies Ltd		49,222		$	711
Leisure Products & Services - 0.82%				Telecommunications - 7.04%
China Travel International Investment Hong	1,158,000		509	America Movil SAB de CV ADR		33,798			720
Kong Ltd				Bharti Infratel Ltd		124,147			870
Merida Industry Co Ltd	54,000		350	BYD Electronic International Co Ltd (a)		234,000			317
	$		859	China Mobile Ltd		220,959			2,827
				Chunghwa Telecom Co Ltd		105,000			335
Media - 2.10%				DiGi.Com Bhd		326,000			463
Naspers Ltd	14,112		2,194	SK Telecom Co Ltd		2,163			484
				Taiwan Mobile Co Ltd		131,000			437
Metal Fabrication & Hardware - 0.70%				Telekomunikasi Indonesia Persero Tbk PT		4,092,100			897
Hyosung Corp	5,643		727				$		7,350
				TOTAL COMMON STOCKS			$		99,934
				INVESTMENT COMPANIES - 1.08%		Shares Held	Value (000			's)
Mining - 0.87%
KGHM Polska Miedz SA	20,516		581	Publicly Traded Investment Fund - 1.08%
MMC Norilsk Nickel PJSC ADR	19,699		332	BlackRock Liquidity Funds FedFund Portfolio		1,130,161			1,130
	$		913
				TOTAL INVESTMENT COMPANIES			$		1,130
Miscellaneous Manufacturing - 1.34%
Largan Precision Co Ltd	10,000		1,142	PREFERRED STOCKS - 2.84%		Shares Held	Value (000			's)
SKC Co Ltd	7,719		254	Banks - 2.02%
	$		1,396	Banco Bradesco SA		35,180			322
				Itau Unibanco Holding SA		161,835			1,783
Oil & Gas - 7.37%
China Petroleum & Chemical Corp	1,988,400		1,706				$		2,105
CNOOC Ltd	556,000		789	Media - 0.04%
Cosan SA Industria e Comercio	54,100		437	Zee Entertainment Enterprises Ltd		3,223,416			43
Gazprom OAO ADR	103,872		541
GS Holdings Corp	9,658		430
Hindustan Petroleum Corp Ltd	62,060		710	Oil & Gas - 0.42%
				Petroleo Brasileiro SA (a)		107,000			439
Lukoil OAO ADR	32,278		1,422
MOL Hungarian Oil & Gas PLC	6,214		318
PetroChina Co Ltd	358,000		399	Telecommunications - 0.36%
SK Innovation Co Ltd (a)	3,634		396	Telefonica Brasil SA		26,900			376
Tatneft OAO ADR	16,985		544
	$		7,692	TOTAL PREFERRED STOCKS			$		2,963
Pharmaceuticals - 1.24%				Total Investments			$		104,027
Aurobindo Pharma Ltd	56,948		1,298	Other Assets in Excess of Liabilities, Net - 0.39%			$		410
				TOTAL NET ASSETS - 100.00%			$		104,437
Real Estate - 1.61%
China Vanke Co Ltd	174,600		429	(a)	Non-Income Producing Security
Emlak Konut Gayrimenkul Yatirim Ortakligi	609,843		628	(b)	Fair value of these investments is determined in good faith by the Manager
AS					under procedures established and periodically reviewed by the Board of
Shimao Property Holdings Ltd	148,500		292		Directors. At the end of the period, the fair value of these securities totaled
Sino-Ocean Land Holdings Ltd	442,500		334		$1,511 or 1.45% of net assets.
	$		1,683
REITS - 1.29%
Fibra Uno Administracion SA de CV	151,300		360		Portfolio Summary (unaudited)
Growthpoint Properties Ltd	219,587		477	Country					Percent
Mexico Real Estate Management SA de CV (a)	368,500		511	China					20.39	%
	$		1,348	Korea, Republic Of					15.99	%
Retail - 3.40%				Taiwan, Province Of China					15.06	%
ANTA Sports Products Ltd	141,000		342	India					9.44	%
Belle International Holdings Ltd	308,000		355	South Africa					7.98	%
BGF retail Co Ltd	3,919		562	Mexico					5.94	%
Dogus Otomotiv Servis ve Ticaret AS	77,756		455	Hong Kong					5.73	%
Mr Price Group Ltd	37,089		763	Brazil					5.61	%
Wal-Mart de Mexico SAB de CV	441,000		1,077	Russian Federation					2.72	%
	$		3,554	United States					2.54	%
				Turkey					2.48	%
Semiconductors - 9.91%				Poland					1.53	%
Everlight Electronics Co Ltd	188,000		360	Indonesia					1.35	%
Powertech Technology Inc	153,000		331	Peru					0.62	%
Samsung Electronics Co Ltd	3,192		3,621	Chile					0.54	%
Silicon Motion Technology Corp ADR	10,337		358	United Arab Emirates					0.49	%
SK Hynix Inc	26,244		995	Thailand					0.45	%
Taiwan Semiconductor Manufacturing Co Ltd	915,164		4,163	Malaysia					0.44	%
Win Semiconductors Corp	378,000		526	Hungary					0.31	%
	$		10,354	Other Assets in Excess of Liabilities, Net					0.39	%
				TOTAL NET ASSETS					100.00	%

See accompanying notes.

162

Schedule of Investments
LargeCap Growth Account
June 30, 2015 (unaudited)
COMMON STOCKS - 98.81%	Shares Held      Value (000's)			COMMON STOCKS (continued)	Shares Held		Value (000			's)
Airlines - 3.95%				Packaging & Containers - 0.44%
Delta Air Lines Inc	59,014	$	2,424	Rock-Tenn Co	9,200			$	554
United Continental Holdings Inc (a)	47,555		2,521
	$		4,945	Pharmaceuticals - 10.79%
				Allergan PLC (a)	11,455				3,476
Apparel - 4.86%
Nike Inc	39,370		4,253	AmerisourceBergen Corp	13,160				1,399
Under Armour Inc (a)	22,026		1,838	Bristol-Myers Squibb Co	52,075				3,465
	$		6,091	McKesson Corp	17,235				3,875
				Mylan NV (a)	19,152				1,300
Banks - 5.52%						$	13,515
Capital One Financial Corp	41,000		3,607
Morgan Stanley	85,300		3,309	Retail - 12.45%
	$		6,916	Kohl's Corp	37,600				2,354
				L Brands Inc	25,006				2,144
Beverages - 1.47%				Starbucks Corp	54,588				2,927
Constellation Brands Inc	15,911		1,846	Target Corp	39,300				3,208
				Ulta Salon Cosmetics & Fragrance Inc (a)	19,073				2,946
				Urban Outfitters Inc (a)	14,400				504
Biotechnology - 9.38%
Alexion Pharmaceuticals Inc (a)	6,615		1,196	Yum! Brands Inc	16,800				1,513
Biogen Inc (a)	6,268		2,532			$	15,596
Gilead Sciences Inc	53,127		6,220	Semiconductors - 4.54%
Illumina Inc (a)	8,267		1,805	Avago Technologies Ltd	6,711				892
	$		11,753	Lam Research Corp	21,679				1,764
				NXP Semiconductors NV (a)	30,809				3,025
Chemicals - 3.75%
PPG Industries Inc	40,984		4,702				$		5,681
				Software - 2.78%
				ServiceNow Inc (a)	23,793				1,768
Commercial Services - 7.82%				(a)
FleetCor Technologies Inc (a)	13,372		2,087	Tableau Software Inc	14,834				1,710
MasterCard Inc	44,198		4,131				$		3,478
McGraw Hill Financial Inc	23,692		2,380	Telecommunications - 1.27%
Towers Watson & Co	9,562		1,203	Palo Alto Networks Inc (a)	9,137				1,596
	$		9,801
Computers - 7.22%				TOTAL COMMON STOCKS		$	123,785
Apple Inc	67,222		8,431	INVESTMENT COMPANIES - 1.29%	Shares Held		Value (000			's)
Cognizant Technology Solutions Corp (a)	10,000		611
				Publicly Traded Investment Fund - 1.29%
	$		9,042	BlackRock Liquidity Funds FedFund Portfolio	1,620,083				1,620
Cosmetics & Personal Care - 1.58%
Estee Lauder Cos Inc/The	22,863		1,981	TOTAL INVESTMENT COMPANIES			$		1,620
				Total Investments		$	125,405
				Liabilities in Excess of Other Assets, Net - (0.10)%			$		(131	)
Diversified Financial Services - 3.74%				TOTAL NET ASSETS - 100.00%		$	125,274
Intercontinental Exchange Inc	4,000		894
Visa Inc	56,440		3,790
	$		4,684	(a) Non-Income Producing Security
Healthcare - Products - 2.39%
Edwards Lifesciences Corp (a)	12,907		1,838
Intuitive Surgical Inc (a)	2,390		1,158
				Portfolio Summary (unaudited)
	$		2,996	Sector					Percent
Internet - 8.82%				Consumer, Non-cyclical					33.43	%
Amazon.com Inc (a)	6,437		2,794	Consumer, Cyclical					24.55	%
Facebook Inc (a)	48,182		4,133	Technology					14.54	%
Netflix Inc (a)	2,017		1,325	Communications					12.15	%
Priceline Group Inc/The (a)	1,096		1,262	Financial					9.26	%
Splunk Inc (a)	22,062		1,536	Basic Materials					3.75	%
	$		11,050	Exchange Traded Funds					1.29	%
				Energy					0.69	%
Leisure Products & Services - 1.90%				Industrial					0.44	%
Royal Caribbean Cruises Ltd	30,162		2,374	Liabilities in Excess of Other Assets, Net					(0.10	)%
				TOTAL NET ASSETS			100.00			%
Lodging - 1.39%
Hilton Worldwide Holdings Inc (a)	63,033		1,737
Media - 2.06%
Walt Disney Co/The	22,633		2,583
Oil & Gas - 0.69%
Cabot Oil & Gas Corp	27,400		864

See accompanying notes.

163

Schedule of Investments
LargeCap Growth Account I
June 30, 2015 (unaudited)
COMMON STOCKS - 96.89%	Shares Held       Value (000's)			COMMON STOCKS (continued)	Shares Held  Value (000's)
Advertising - 0.05%				Biotechnology (continued)
Interpublic Group of Cos Inc/The	2,572	$	50	Gilead Sciences Inc	45,055	$	5,275
Omnicom Group Inc	967		67	Illumina Inc (a)	507		111
	$		117	Incyte Corp (a)	5,844		609
				Medivation Inc (a)	490		56
Aerospace & Defense - 1.95%				Regeneron Pharmaceuticals Inc (a)	1,817		927
B/E Aerospace Inc	661		36	United Therapeutics Corp (a)	283		49
Boeing Co/The	31,109		4,316	Vertex Pharmaceuticals Inc (a)	6,558		810
General Dynamics Corp	346		49		$		18,977
Harris Corp	132		10
Lockheed Martin Corp	765		142	Building Materials - 0.61%
Northrop Grumman Corp	367		58	Fortune Brands Home & Security Inc	347		16
Rockwell Collins Inc	824		76	Martin Marietta Materials Inc	58		8
Spirit AeroSystems Holdings Inc (a)	814		45	Vulcan Materials Co	17,608		1,478
United Technologies Corp	510		57		$		1,502
	$		4,789
				Chemicals - 1.97%
Agriculture - 0.29%				Air Products & Chemicals Inc	723		99
Altria Group Inc	6,488		317	Ashland Inc	40		5
Philip Morris International Inc	3,246		260	Axalta Coating Systems Ltd (a)	628		21
Reynolds American Inc	1,740		130	Celanese Corp	67		5
	$		707	CF Industries Holdings Inc	951		61
				Dow Chemical Co/The	941		48
Airlines - 1.18%				Eastman Chemical Co	230		19
Alaska Air Group Inc	807		52	Ecolab Inc	27,576		3,118
American Airlines Group Inc	49,945		1,995	EI du Pont de Nemours & Co	1,709		109
Delta Air Lines Inc	3,202		132	International Flavors & Fragrances Inc	504		55
JetBlue Airways Corp (a)	727		15	LyondellBasell Industries NV	1,568		162
Southwest Airlines Co	2,630		87	Monsanto Co	1,939		207
Spirit Airlines Inc (a)	454		28	NewMarket Corp	51		23
United Continental Holdings Inc (a)	11,285		598	Platform Specialty Products Corp (a),(b)	122		3
	$		2,907	PPG Industries Inc	957		110
Apparel - 0.57%				Praxair Inc	845		101
Carter'sInc	327		35	Sherwin-Williams Co/The	2,232		614
Hanesbrands Inc	25,100		836	Sigma-Aldrich Corp	290		40
Michael Kors Holdings Ltd (a)	1,238		52	Valspar Corp/The	495		40
Nike Inc	2,722		294		$		4,840
Skechers U.S.A. Inc (a)	254		28	Commercial Services - 0.61%
Under Armour Inc (a)	621		52	Aaron's Inc	72		3
VF Corp	1,371		96	Automatic Data Processing Inc	1,543		124
	$		1,393	Avis Budget Group Inc (a)	659		29
Automobile Manufacturers - 0.49%				Booz Allen Hamilton Holding Corp	586		15
PACCAR Inc	1,266		81	Cintas Corp	594		50
Tesla Motors Inc (a)	4,144		1,111	Equifax Inc	741		72
				FleetCor Technologies Inc (a)	319		50
	$		1,192	Gartner Inc (a)	517		44
Automobile Parts & Equipment - 0.26%				Global Payments Inc	405		42
Allison Transmission Holdings Inc	608		18	KAR Auction Services Inc	296		11
BorgWarner Inc	787		45	MasterCard Inc	4,085		382
Delphi Automotive PLC	1,164		99	McGraw Hill Financial Inc	964		97
Lear Corp	362		41	Moody's Corp	719		78
Mobileye NV (a)	7,400		393	Morningstar Inc	118		9
WABCO Holdings Inc (a)	332		41	Quanta Services Inc (a)	252		7
	$		637	Robert Half International Inc	841		47
				RR Donnelley & Sons Co	682		12
Banks - 1.69%				ServiceMaster Global Holdings Inc (a)	640		23
Bank of New York Mellon Corp/The	754		32	Total System Services Inc	1,029		43
Morgan Stanley	72,600		2,816	Towers Watson & Co	76		9
State Street Corp	16,800		1,293	United Rentals Inc (a)	604		53
	$		4,141	Vantiv Inc (a)	3,900		149
				Verisk Analytics Inc (a)	657		48
Beverages - 0.57%
Coca-Cola Co/The	13,748		539	Western Union Co/The	3,227		65
Coca-Cola Enterprises Inc	1,451		63	WEX Inc (a)	240		27
Constellation Brands Inc	683		79		$		1,489
Dr Pepper Snapple Group Inc	800		58
Monster Beverage Corp (a)	633		85	Computers - 5.69%
				Accenture PLC - Class A	2,566		248
PepsiCo Inc	6,208		580	Apple Inc	64,535		8,094
	$		1,404	Cognizant Technology Solutions Corp (a)	48,472		2,962
Biotechnology - 7.72%				DST Systems Inc	176		22
Alexion Pharmaceuticals Inc (a)	26,556		4,801	EMC Corp/MA	992		26
Amgen Inc	3,060		470	Fortinet Inc (a)	889		37
Biogen Inc (a)	6,647		2,684	Genpact Ltd (a)	99,624		2,125
BioMarin Pharmaceutical Inc (a)	6,057		828	IHS Inc (a)	366		47
Celgene Corp (a)	20,366		2,357	International Business Machines Corp	2,058		335

See accompanying notes.

164

Schedule of Investments
LargeCap Growth Account I
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Computers (continued)				Electronics (continued)
Jack Henry & Associates Inc	499	$	32	Waters Corp (a)	515	$	66
NetApp Inc	582		18		$		5,245
Synopsys Inc (a)	70		4
Teradata Corp (a)	671		25	Engineering & Construction - 0.02%
				AECOM (a)	123		4
	$		13,975	SBA Communications Corp (a)	397		46
Consumer Products - 0.13%					$		50
Avery Dennison Corp	527		32
Church & Dwight Co Inc	814		66	Entertainment - 0.02%
				Madison Square Garden Co/The (a)	383		32
Clorox Co/The	648		68
Kimberly-Clark Corp	1,217		129	Six Flags Entertainment Corp	447		20
Spectrum Brands Holdings Inc	157		16		$		52
	$		311	Environmental Control - 1.45%
				Clean Harbors Inc (a)	247		13
Cosmetics & Personal Care - 1.81%				Stericycle Inc (a)	26,397		3,535
Colgate-Palmolive Co	3,337		218
Estee Lauder Cos Inc/The	48,829		4,232	Waste Management Inc	239		11
	$		4,450		$		3,559
Distribution & Wholesale - 1.09%				Food - 1.14%
Fastenal Co	58,559		2,470	Campbell Soup Co	638		30
Fossil Group Inc (a)	214		15	Flowers Foods Inc	966		20
Genuine Parts Co	560		50	General Mills Inc	2,108		117
LKQ Corp (a)	1,895		57	Hain Celestial Group Inc (a)	639		42
Watsco Inc	162		20	Hershey Co/The	504		45
WW Grainger Inc	260		62	Hormel Foods Corp	833		47
	$		2,674	Ingredion Inc	54		4
				Kellogg Co	789		50
Diversified Financial Services - 6.53%				Kraft Foods Group Inc	2,074		177
Affiliated Managers Group Inc (a)	340		74	Kroger Co/The	2,063		150
Air Lease Corp	33		1	Pilgrim's Pride Corp	56		1
Alliance Data Systems Corp (a)	256		75	Tyson Foods Inc	93		4
Ally Financial Inc (a)	222		5	WhiteWave Foods Co/The (a)	1,090		53
American Express Co	679		53	Whole Foods Market Inc	52,227		2,060
Ameriprise Financial Inc	621		78		$		2,800
BlackRock Inc	161		56
CBOE Holdings Inc	504		29	Forest Products & Paper - 0.03%
Charles Schwab Corp/The	133,944		4,373	International Paper Co	1,616		77
CoreLogic Inc/United States (a)	252		10
Credit Acceptance Corp (a)	53		13
				Hand & Machine Tools - 0.04%
Eaton Vance Corp	734		29	Lincoln Electric Holdings Inc	433		26
Federated Investors Inc	583		19	Regal Beloit Corp	14		1
Intercontinental Exchange Inc	4,947		1,106	Snap-on Inc	361		58
Invesco Ltd	335		13	Stanley Black &Decker Inc	88		9
Legg Mason Inc	199		10		$		94
Santander Consumer USA Holdings Inc (a)	41		1
SLM Corp (a)	2,440		24	Healthcare - Products - 5.48%
T Rowe Price Group Inc	1,055		82	Align Technology Inc (a)	503		32
TD Ameritrade Holding Corp	31,417		1,157	Baxter International Inc	1,396		98
Visa Inc	131,273		8,815	Becton Dickinson and Co	4,446		630
Waddell & Reed Financial Inc	486		23	Bruker BioSciences Corp (a)	691		14
	$		16,046	CR Bard Inc	295		50
				Danaher Corp	79,599		6,813
Electric - 0.01%				DENTSPLY International Inc	222		11
Calpine Corp (a)	269		5	Edwards Lifesciences Corp (a)	429		61
Dominion Resources Inc/VA	195		13	Henry Schein Inc (a)	520		74
ITC Holdings Corp	356		11	Hologic Inc (a)	1,532		58
	$		29	IDEXX Laboratories Inc (a)	583		37
				Intuitive Surgical Inc (a)	11,079		5,368
Electrical Components & Equipment - 0.06%				Patterson Cos Inc	293		14
AMETEK Inc	932		51	ResMed Inc	878		50
Emerson Electric Co	1,811		101	Sirona Dental Systems Inc (a)	345		35
Hubbell Inc	47		5	Stryker Corp	685		65
	$		157	Varian Medical Systems Inc (a)	621		52
				VWR Corp (a)	96		3
Electronics - 2.13%
Amphenol Corp	55,985		3,245	Zimmer Biomet Holdings Inc	65		7
Gentex Corp/MI	920		15		$		13,472
Honeywell International Inc	3,061		312
Jabil Circuit Inc	224		5	Healthcare - Services - 3.47%
Keysight Technologies Inc (a)	885		28	Aetna Inc	535		68
Mettler-Toledo International Inc (a)	172		59	Anthem Inc	7,926		1,301
				Centene Corp (a)	740		60
National Instruments Corp	47,411		1,397	Cigna Corp	5,736		929
Thermo Fisher Scientific Inc	536		69	DaVita HealthCare Partners Inc (a)	32,411		2,576
Tyco International PLC	1,280		49	HCA Holdings Inc (a)	155		14
				Health Net Inc/CA (a)	79		5

See accompanying notes.

165

Schedule of Investments
LargeCap Growth Account I
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held  Value (000's)
Healthcare - Services (continued)				Lodging (continued)
Humana Inc	6,061	$	1,159	Wynn Resorts Ltd	6,200	$	612
Laboratory Corp of America Holdings (a)	207		25		$		3,313
LifePoint Health Inc (a)	27		2
Mednax Inc (a)	336		25	Machinery - Construction & Mining - 0.02%
Premier Inc (a)	234		9	Caterpillar Inc	654		55
UnitedHealth Group Inc	19,240		2,347
Universal Health Services Inc	103		15	Machinery - Diversified - 0.90%
	$		8,535	Babcock & Wilcox Co/The	132		4
				Cummins Inc	524		69
Home Builders - 0.03%
NVR Inc (a)	26		35	Deere & Co	374		36
Thor Industries Inc	283		16	Flowserve Corp	14,590		769
Toll  Brothers Inc (a)	381		14	Graco Inc	365		26
				Middleby Corp/The (a)	357		40
	$		65	Nordson Corp	377		29
Home Furnishings - 0.05%				Rockwell Automation Inc	523		65
Harman International Industries Inc	443		53	Roper Technologies Inc	239		41
Leggett & Platt Inc	858		42	Wabtec Corp/DE	12,101		1,141
Tempur Sealy International Inc (a)	380		25		$		2,220
	$		120
				Media - 0.97%
				AMC Networks Inc (a)	373		31
Housewares - 0.03%
Newell Rubbermaid Inc	843		35	Cablevision Systems Corp	181		4
Scotts Miracle-Gro Co/The	244		14	CBS Corp	1,732		96
Tupperware Brands Corp	293		19	Charter Communications Inc (a)	260		45
	$		68	Comcast Corp - Class A	7,696		463
				Comcast Corp - Special Class A	1,371		82
Insurance - 0.12%				DIRECTV (a)	1,897		176
Aon PLC	992		99	DISH Network Corp (a)	912		62
Arthur J Gallagher & Co	580		27	FactSet Research Systems Inc	260		42
Berkshire Hathaway Inc - Class B (a)	489		67	Scripps Networks Interactive Inc	571		37
Erie Indemnity Co	153		13	Sirius XM Holdings Inc (a)	14,321		54
Markel Corp (a)	8		6	Starz (a)	537		24
Marsh & McLennan Cos Inc	1,302		74	Time Warner Cable Inc	991		177
	$		286	Time Warner Inc	1,491		130
Internet - 15.69%				Twenty-First Century Fox Inc - A Shares	3,000		98
Alibaba Group Holding Ltd ADR(a)	12,647		1,040	Viacom Inc	64		4
Amazon.com Inc (a)	23,144		10,046	Viacom Inc	1,397		90
Baidu Inc ADR(a)	6,900		1,374	Walt Disney Co/The	6,811		777
CDW Corp/DE	821		28		$		2,392
Dropbox Inc (a),(b),(c),(d)	1,434		27	Metal Fabrication & Hardware - 0.31%
eBay Inc (a)	4,963		299	Precision Castparts Corp	3,764		752
Expedia Inc	614		67
F5 Networks Inc (a)	447		54
Facebook Inc (a)	79,539		6,822	Mining - 0.01%
Flipkart Online Services Pvt Ltd (a),(b),(c),(e)	194		28	Compass Minerals International Inc	209		17
Google Inc - A Shares (a)	9,448		5,102	Tahoe Resources Inc	91		1
Google Inc - C Shares (a)	8,457		4,403		$		18
Groupon Inc (a)	3,085		15
LinkedIn Corp (a)	4,580		946	Miscellaneous Manufacturing - 1.35%
Netflix Inc (a)	1,013		666	3M Co	2,485		383
Priceline Group Inc/The (a)	3,399		3,914	AO Smith Corp	462		33
TripAdvisor Inc (a)	35,700		3,111	Carlisle Cos Inc	88		9
				Colfax Corp (a)	39,598		1,827
Twitter Inc (a)	1,966		71
VeriSign Inc (a)	657		41	Illinois Tool Works Inc	1,176		108
Vipshop Holdings Ltd ADR(a)	22,900		509	Ingersoll-Rand PLC	115		8
				Pall Corp	415		52
	$		38,563	Parker-Hannifin Corp	391		45
Iron & Steel - 0.00%				Textron Inc	19,292		862
Steel Dynamics Inc	167		3		$		3,327
				Office & Business Equipment - 0.00%
Leisure Products & Services - 0.05%				Pitney Bowes Inc	486		10
Brunswick Corp/DE	425		22
Norwegian Cruise Line Holdings Ltd (a)	752		42
				Oil & Gas - 1.19%
Polaris Industries Inc	414		61	Cabot Oil & Gas Corp	1,638		52
	$		125	Cimarex Energy Co	3,480		384
				Continental Resources Inc/OK (a)	175		7
Lodging - 1.35%
Choice Hotels International Inc	220		12	CVR Energy Inc	43		2
Hilton Worldwide Holdings Inc (a)	44,743		1,233	EOG Resources Inc	294		26
Las Vegas Sands Corp	1,285		67	EQT Corp	10,800		878
Marriott International Inc/MD	835		62	HollyFrontier Corp	180		8
MGM Resorts International (a)	66,729		1,218	Marathon Petroleum Corp	253		13
Starwood Hotels & Resorts Worldwide Inc	594		48	Murphy USA Inc (a)	17		1
Wyndham Worldwide Corp	747		61	Pioneer Natural Resources Co	3,800		527

See accompanying notes.

166

Schedule of Investments
LargeCap Growth Account I
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held    Value (000's)
Oil & Gas (continued)				REITS (continued)
Range Resources Corp	20,853	$	1,029	Tanger Factory Outlet Centers Inc	597	$	19
Tesoro Corp	47		4		$		1,031
	$		2,931
				Retail - 6.62%
Oil & Gas Services - 1.86%				Advance Auto Parts Inc	455		72
FMC Technologies Inc (a)	50,810		2,108	AutoNation Inc (a)	454		29
Oceaneering International Inc	107		5	AutoZone Inc (a)	127		85
Schlumberger Ltd	28,447		2,452	Bed Bath & Beyond Inc (a)	1,067		74
Targa Resources Corp	170		15	Brinker International Inc	364		21
	$		4,580	CarMax Inc (a)	10,843		718
				Chipotle Mexican Grill Inc (a)	876		530
Packaging & Containers - 0.09%				Coach Inc	240		8
Ball Corp	858		60	Copart Inc (a)	788		28
Bemis Co Inc	66		3	Costco Wholesale Corp	23,449		3,167
Crown Holdings Inc (a)	381		20
Graphic Packaging Holding Co	1,182		17	CST Brands Inc	395		15
Owens-Illinois Inc (a)	63		2	CVS Health Corp	4,399		461
				Dick's Sporting Goods Inc	394		20
Packaging Corp of America	610		38	Dillard's Inc	17		2
Rock-Tenn Co	167		10	Dollar General Corp	1,224		95
Sealed Air Corp	1,309		67	Dollar Tree Inc (a)	821		65
Silgan Holdings Inc	252		13	Domino's Pizza Inc	343		39
	$		230	Dunkin' Brands Group Inc	599		33
Pharmaceuticals - 9.32%				Foot Locker Inc	753		50
AbbVie Inc	7,045		473	Gap Inc/The	1,484		57
Allergan PLC (a)	8,206		2,490	GNC Holdings Inc	534		24
AmerisourceBergen Corp	893		95	Home Depot Inc/The	5,214		579
Bristol-Myers Squibb Co	60,366		4,017	L Brands Inc	999		86
Cardinal Health Inc	1,209		101	Liberty Interactive Corp QVC Group (a)	1,254		35
Eli Lilly & Co	16,730		1,396	Lowe's Cos Inc	22,720		1,522
Express Scripts Holding Co (a)	50,320		4,475	Macy's Inc	981		66
Herbalife Ltd (a)	389		22	McDonald's Corp	3,358		319
Hospira Inc (a)	839		74	Michaels Cos Inc/The (a)	390		11
Johnson & Johnson	1,442		141	O'Reilly Automotive Inc (a)	402		91
McKesson Corp	15,033		3,380	Panera Bread Co (a)	157		27
Mead Johnson Nutrition Co	34,039		3,071	Penske Automotive Group Inc	99		5
Merck & Co Inc	1,287		73	Ross Stores Inc	1,670		81
Mylan NV (a)	1,266		86	Sally Beauty Holdings Inc (a)	982		31
Omnicare Inc	204		19	Starbucks Corp	112,804		6,048
OPKO Health Inc (a)	1,463		24	Target Corp	330		27
Quintiles Transnational Holdings Inc (a)	467		34	TJX Cos Inc/The	2,745		182
Valeant Pharmaceuticals International Inc (a)	12,600		2,799	Tractor Supply Co	13,943		1,254
VCA Inc (a)	482		26	Ulta Salon Cosmetics & Fragrance Inc (a)	400		62
Zoetis Inc	2,006		97	Walgreens Boots Alliance Inc	808		68
	$		22,893	Williams-Sonoma Inc	570		47
				World Fuel Services Corp	81		4
Pipelines - 0.08%				Yum! Brands Inc	1,512		136
ONEOK Inc	585		23		$		16,274
Williams Cos Inc/The	2,988		172
	$		195	Semiconductors - 1.47%
				Analog Devices Inc	998		64
Real Estate - 0.04%				Applied Materials Inc	2,537		49
CBRE Group Inc (a)	1,782		66	Avago Technologies Ltd	902		120
Jones Lang LaSalle Inc	203		35	Intel Corp	2,069		63
	$		101	IPG Photonics Corp (a)	215		18
				Microchip Technology Inc	1,260		60
REITS - 0.42%				Micron Technology Inc (a)	532		10
American Tower Corp	1,484		138	NXP Semiconductors NV (a)	28,894		2,837
Boston Properties Inc	567		69	Qorvo Inc (a)	520		42
Columbia Property Trust Inc	95		2
Crown Castle International Corp	1,367		110	Qualcomm Inc	973		61
Digital Realty Trust Inc	485		32	Skyworks Solutions Inc	664		69
Empire State Realty Trust Inc	326		6	Texas Instruments Inc	4,108		212
Equinix Inc	230		58	Xilinx Inc	372		16
Equity LifeStyle Properties Inc	525		28		$		3,621
Extra Space Storage Inc	725		47	Shipbuilding - 0.01%
Federal Realty Investment Trust	427		55	Huntington Ingalls Industries Inc	302		34
Health Care REIT Inc	985		65
Healthcare Trust of America Inc	102		2
Iron Mountain Inc	514		16	Software - 6.25%
				Adobe Systems Inc (a)	1,756		142
Lamar Advertising Co	504		29	Akamai Technologies Inc (a)	3,521		245
Omega Healthcare Investors Inc	309		11	ANSYS Inc (a)	20,504		1,871
Plum Creek Timber Co Inc	448		18
Post Properties Inc	114		6	Broadridge Financial Solutions Inc	747		37
Public Storage	542		100	CDK Global Inc	998		54
				Cerner Corp (a)	1,197		83
Simon Property Group Inc	1,271		220

See accompanying notes.

167

Schedule of Investments
LargeCap Growth Account I
June 30, 2015 (unaudited)
COMMON STOCKS (continued)		Shares Held		Value (000			's)	PREFERRED STOCKS - 0.06%			Shares Held          Value (000's)
Software (continued)								Internet - 0.06%
Electronic Arts Inc (a)		1,291			$	86		Flipkart Online Services Pvt Ltd Series G				985	$	140
Fidelity National Information Services Inc		761				47		(a),(b),(c),(l)
Fiserv Inc (a)		960				80
Intuit Inc		1,128				114		TOTAL PREFERRED STOCKS				$		140
King Digital Entertainment PLC		500				7		Total Investments				$		245,511
Microsoft Corp		54,441				2,403		Other Assets in Excess of Liabilities, Net - 0.09%				$		232
MSCI Inc		700				43		TOTAL NET ASSETS - 100.00%				$		245,743
NetSuite Inc (a)		21,435				1,967
Oracle Corp		7,767				313
Paychex Inc		1,128				53		(a)	Non-Income Producing Security
Rackspace Hosting Inc (a)		767				29		(b)
									Security is Illiquid. At the end of the period, the value of these securities
Red Hat Inc (a)		14,737				1,119			totaled $970 or 0.39% of net assets.
Salesforce.com inc (a)		74,940				5,218		(c)	Fair value of these investments is determined in good faith by the Manager
ServiceNow Inc (a)		11,500				855			under
									procedures established and periodically reviewed by the Board of
SolarWinds Inc (a)		415				19			Directors. At the end of the period, the fair value of these securities totaled
SS&C Technologies Holdings Inc		398				25			$967 or 0.39% of net assets.
Tableau Software Inc (a)		308				35		(d)
									Restricted Security.	At the end of the period, the value of this security
Veeva Systems Inc (a)		442				12			totaled $27 or 0.01% of the net assets.		The security was purchased
Workday Inc (a)		6,500				497			November 7, 2014 at a total cost of $27.
				$		15,354		(e)	Restricted Security. At the end of the period, the value of this security
									totaled $28 or 0.01% of net assets. The security was purchased March 19,
Telecommunications - 0.43%
ARRIS Group Inc (a)		141				4			2015 at a cost of $22.
Palo Alto Networks Inc (a)		2,052				359		(f)	Restricted Security.	At the end of the period, the value of this security
Verizon Communications Inc		14,744				687			totaled $366 or 0.15% of the net assets.		The security was purchased April
				$		1,050			16, 2014 at a cost of $160.
								(g)	Restricted Security.	At the end of the period, the value of this security
Textiles - 0.02%									totaled $157 or 0.06% of the net assets.		The security was purchased
Mohawk Industries Inc (a)		270				52			January 30, 2014 at a total cost of $157.
								(h)	Restricted Security.	At the end of the period, the value of this security
									totaled $10 or 0.00% of the net assets.		The security was purchased March
Toys, Games & Hobbies - 0.02%									19, 2015 at a total	cost of $8.
Hasbro Inc		563				42		(i)	Restricted Security.	At the end of the period, the value of this security
									totaled $17 or 0.01% of the net assets.		The security was purchased March
Transportation - 1.13%									19, 2015 at a total	cost of $13.
Canadian Pacific Railway Ltd		2,900				465		(j)	Restricted Security. At the end of the period, the value of this security
CH Robinson Worldwide Inc		908				57			totaled $31 or 0.01% of net assets. The security was purchased on March
CSX Corp		1,588				52			19, 2015 at a cost of $25.
Expeditors International of Washington Inc		1,191				55		(k)	Restricted Security. At the end of the period, the value of this security
FedEx Corp		7,399				1,261			totaled $191 or 0.08% of net assets. The security was purchased on
Genesee & Wyoming Inc (a)		128				10			December 5, 2014 at a cost of $191.
JB Hunt Transport Services Inc		2,673				219		(l)	Restricted Security. At the end of the period, the value of this security
Landstar System Inc		276				18			totaled $140 or 0.06% of net assets. The security was purchased on
Old Dominion Freight Line Inc (a)		434				30			December 17, 2014 at a cost of $118.
Teekay Corp		112				5
Union Pacific Corp		3,431				327
United Parcel Service Inc		2,749				266
									Portfolio Summary (unaudited)
				$		2,765		Sector						Percent
TOTAL COMMON STOCKS			$	238,091				Consumer, Non-cyclical						30.56	%
INVESTMENT COMPANIES - 2.65%		Shares Held		Value (000			's)	Communications						17.51	%
Publicly Traded Investment Fund - 2.65%								Technology						13.39	%
BlackRock Liquidity Funds FedFund Portfolio		2,174,499				2,175		Consumer, Cyclical						11.78	%
Cash Account Trust - Government & Agency		408,526				408		Industrial						10.07	%
Portfolio - Government Cash Managed								Financial						8.80	%
First American Government Obligations Fund		3,924,987				3,925		Energy						3.13	%
				$		6,508		Exchange Traded Funds						2.65	%
TOTAL INVESTMENT COMPANIES				$		6,508		Basic Materials						2.01	%
CONVERTIBLE PREFERRED STOCKS -								Utilities						0.01	%
0.31	%	Shares Held		Value (000			's)	Other Assets in Excess of Liabilities, Net						0.09	%
								TOTAL NET ASSETS						100.00	%
Internet - 0.31%
Airbnb Inc (a),(b),(c),(f)		3,936				366
Dropbox Inc (a),(b),(c),(g)		8,228				157
Flipkart Online Services Pvt Ltd Series A		68				10
(a),(b),(c),(h)
Flipkart Online Services Pvt Ltd Series C		117				17
(a),(b),(c),(i)
Flipkart Online Services Pvt Ltd Series E		220				31
(a),(b),(c),(j)
Uber Technologies Inc (a),(b),(c),(k)		5,740				191
				$		772
TOTAL CONVERTIBLE PREFERRED STOCKS				$		772

See accompanying notes.

168

		Schedule of Investments
LargeCap Growth Account I
June 30, 2015 (unaudited)
Futures Contracts
									Unrealized
Type	Long/Short	Contracts		Notional Value		Fair Value	Appreciation/(Depreciation)
S&P 500 Emini; September 2015	Long	64	$	6,718	$	6,574		$	(144	)
Total							$		(144	)
Amounts in thousands except contracts

See accompanying notes.

169

Schedule of Investments
LargeCap S&P 500 Index Account
June 30, 2015 (unaudited)
COMMON STOCKS - 97.91%	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held     Value (000's)
Advertising - 0.13%				Beverages - 2.08%
Interpublic Group of Cos Inc/The	43,357	$	835	Brown-Forman Corp	16,361	$	1,639
Omnicom Group Inc	25,652		1,783	Coca-Cola Co/The	411,893		16,159
	$		2,618	Coca-Cola Enterprises Inc	22,506		978
				Constellation Brands Inc	17,789		2,064
Aerospace & Defense - 1.95%				Dr Pepper Snapple Group Inc	20,131		1,467
Boeing Co/The	67,525		9,367	Keurig Green Mountain Inc	12,124		929
General Dynamics Corp	32,790		4,646	Molson Coors Brewing Co	16,763		1,170
Harris Corp	12,939		995	Monster Beverage Corp (a)	15,366		2,059
L-3 Communications Holdings Inc	8,647		980	PepsiCo Inc	154,983		14,466
Lockheed Martin Corp	28,092		5,222		$		40,931
Northrop Grumman Corp	20,347		3,228
Raytheon Co	32,039		3,065	Biotechnology - 3.12%
Rockwell Collins Inc	13,888		1,283	Alexion Pharmaceuticals Inc (a)	23,509		4,250
United Technologies Corp	86,927		9,643	Amgen Inc	79,833		12,256
	$		38,429	Biogen Inc (a)	24,698		9,977
				Celgene Corp (a)	83,279		9,638
Agriculture - 1.50%				Gilead Sciences Inc	154,307		18,066
Altria Group Inc	206,486		10,099	Regeneron Pharmaceuticals Inc (a)	7,916		4,038
Archer-Daniels-Midland Co	65,138		3,141	Vertex Pharmaceuticals Inc (a)	25,593		3,160
Philip Morris International Inc	162,658		13,040		$		61,385
Reynolds American Inc	43,644		3,259
	$		29,539	Building Materials - 0.16%
				Martin Marietta Materials Inc	6,518		922
Airlines - 0.44%				Masco Corp	36,497		974
American Airlines Group Inc	72,743		2,905	Vulcan Materials Co	13,929		1,169
Delta Air Lines Inc	86,236		3,542		$		3,065
Southwest Airlines Co	70,170		2,322
	$		8,769	Chemicals - 2.29%
				Air Products & Chemicals Inc	20,295		2,777
Apparel - 0.76%				Airgas Inc	7,135		755
Hanesbrands Inc	42,174		1,405	CF Industries Holdings Inc	24,710		1,588
Michael Kors Holdings Ltd (a)	20,863		878	Dow Chemical Co/The	113,788		5,822
Nike Inc	73,120		7,898	Eastman Chemical Co	15,642		1,280
Ralph Lauren Corp	6,345		840	Ecolab Inc	28,138		3,182
Under Armour Inc (a)	17,652		1,473	EI du Pont de Nemours & Co	95,048		6,078
VF Corp	35,697		2,490	FMC Corp	14,020		737
	$		14,984	International Flavors & Fragrances Inc	8,492		928
Automobile Manufacturers - 0.68%				LyondellBasell Industries NV	41,247		4,270
Ford Motor Co	417,408		6,265	Monsanto Co	49,990		5,328
General Motors Co	141,754		4,725	Mosaic Co/The	32,586		1,527
PACCAR Inc	37,253		2,377	PPG Industries Inc	28,544		3,275
	$		13,367	Praxair Inc	30,272		3,619
				Sherwin-Williams Co/The	8,316		2,287
Automobile Parts & Equipment - 0.42%				Sigma-Aldrich Corp	12,539		1,747
BorgWarner Inc	23,757		1,350		$		45,200
Delphi Automotive PLC	30,317		2,580
Goodyear Tire & Rubber Co/The	28,324		854	Coal - 0.03%
Johnson Controls Inc	68,756		3,405	Consol Energy Inc	24,026		522
	$		8,189
				Commercial Services - 1.32%
Banks - 7.52%
Bank of America Corp	1,102,709		18,768	ADT Corp/The	17,985		604
Bank of New York Mellon Corp/The	117,757		4,942	Automatic Data Processing Inc	49,299		3,955
BB&T Corp	76,748		3,094	Cintas Corp	9,969		843
Capital One Financial Corp	57,373		5,047	Equifax Inc	12,495		1,213
Citigroup Inc	318,581		17,598	H&R Block Inc	28,900		857
Comerica Inc	18,690		959	MasterCard Inc	101,765		9,513
Fifth Third Bancorp	85,042		1,771	McGraw Hill Financial Inc	28,738		2,887
Goldman Sachs Group Inc/The	42,185		8,808	Moody's Corp	18,680		2,017
				Quanta Services Inc (a)	22,241		641
Huntington Bancshares Inc/OH	84,894		960
JP Morgan Chase & Co	389,661		26,403	Robert Half International Inc	14,182		787
KeyCorp	89,071		1,338	Total System Services Inc	17,223		719
				United Rentals Inc (a)	10,181		892
M&T Bank Corp	13,961		1,744
Morgan Stanley	161,343		6,259	Western Union Co/The	54,212		1,102
Northern Trust Corp	23,033		1,761		$		26,030
PNC Financial Services Group Inc/The	54,381		5,202	Computers - 6.09%
Regions Financial Corp	140,735		1,458	Accenture PLC - Class A	65,756		6,364
State Street Corp	43,225		3,328	Apple Inc	604,901		75,870
SunTrust Banks Inc	54,202		2,332	Cognizant Technology Solutions Corp (a)	64,103		3,916
US Bancorp/MN	186,166		8,080	Computer Sciences Corp	14,456		949
Wells Fargo & Co	492,001		27,670	EMC Corp/MA	203,914		5,381
Zions Bancorporation	21,336		677	Hewlett-Packard Co	189,671		5,692
	$		148,199	International Business Machines Corp	96,158		15,641
				NetApp Inc	32,737		1,033
				SanDisk Corp	21,831		1,271

See accompanying notes.

170

Schedule of Investments
LargeCap S&P 500 Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held    Value (000's)
Computers (continued)				Electronics - 1.39%
Seagate Technology PLC	33,324	$	1,583	Agilent Technologies Inc	34,984	$	1,350
Teradata Corp (a)	14,909		552	Allegion PLC	10,045		604
Western Digital Corp	22,790		1,787	Amphenol Corp	32,436		1,880
	$		120,039	Corning Inc	132,146		2,607
				FLIR Systems Inc	14,712		453
Consumer Products - 0.31%				Garmin Ltd	12,663		556
Avery Dennison Corp	9,557		582	Honeywell International Inc	82,078		8,370
Clorox Co/The	13,773		1,433	PerkinElmer Inc	11,885		626
Kimberly-Clark Corp	38,230		4,051	TE Connectivity Ltd	42,691		2,745
	$		6,066	Thermo Fisher Scientific Inc	41,795		5,423
Cosmetics & Personal Care - 1.53%				Tyco International PLC	44,207		1,701
Colgate-Palmolive Co	89,280		5,840	Waters Corp (a)	8,682		1,115
Estee Lauder Cos Inc/The	23,441		2,031		$		27,430
Procter & Gamble Co/The (b)	284,861		22,288
				Energy - Alternate Sources - 0.02%
	$		30,159	First Solar Inc (a)	7,939		373
Distribution & Wholesale - 0.22%
Fastenal Co	28,544		1,204	Engineering & Construction - 0.07%
Fossil Group Inc (a)	4,509		313	Fluor Corp	15,479		820
Genuine Parts Co	15,980		1,430	Jacobs Engineering Group Inc (a)	13,186		536
WW Grainger Inc	6,253		1,480		$		1,356
	$		4,427
				Environmental Control - 0.22%
Diversified Financial Services - 2.63%				Republic Services Inc	26,192		1,026
Affiliated Managers Group Inc (a)	5,745		1,256	Stericycle Inc (a)	8,929		1,196
Alliance Data Systems Corp (a)	6,515		1,902	Waste Management Inc	44,705		2,072
American Express Co	91,725		7,129		$		4,294
Ameriprise Financial Inc	19,044		2,379
BlackRock Inc	13,333		4,613	Food - 1.70%
Charles Schwab Corp/The	121,367		3,963	Campbell Soup Co	18,660		889
CME Group Inc/IL	33,316		3,100	ConAgra Foods Inc	44,839		1,960
Discover Financial Services	46,462		2,677	General Mills Inc	62,588		3,487
E*Trade Financial Corp (a)	30,437		912	Hershey Co/The	15,409		1,369
Franklin Resources Inc	40,953		2,008	Hormel Foods Corp	14,151		798
Intercontinental Exchange Inc	11,734		2,624	JM Smucker Co/The	10,176		1,103
Invesco Ltd	45,223		1,695	Kellogg Co	26,308		1,649
Legg Mason Inc	10,242		528	Kraft Foods Group Inc	62,188		5,295
NASDAQ OMX Group Inc/The	12,435		607	Kroger Co/The	51,470		3,732
Navient Corp	40,846		744	McCormick & Co Inc/MD	13,417		1,086
T Rowe Price Group Inc	27,587		2,144	Mondelez International Inc	170,793		7,026
Visa Inc	202,968		13,629	Sysco Corp	62,344		2,251
	$		51,910	Tyson Foods Inc	30,631		1,306
				Whole Foods Market Inc	37,619		1,484
Electric - 2.48%					$		33,435
AES Corp/VA	71,655		950
Ameren Corp	25,476		960	Forest Products & Paper - 0.11%
American Electric Power Co Inc	51,443		2,725	International Paper Co	44,400		2,113
CMS Energy Corp	28,978		923
Consolidated Edison Inc	30,751		1,780	Gas -0.27%
Dominion Resources Inc/VA	62,314		4,167	AGLResourcesInc	12,593		586
DTE Energy Co	18,829		1,406	CenterPoint Energy Inc	45,171		860
Duke Energy Corp	72,610		5,128	NiSource Inc	33,324		1,519
Edison International	34,209		1,901	Sempra Energy	24,436		2,418
Entergy Corp	18,849		1,329		$		5,383
Eversource Energy	33,352		1,515
Exelon Corp	90,429		2,841	Hand & Machine Tools - 0.14%
FirstEnergy Corp	44,312		1,442	Snap-on Inc	6,123		975
NextEra Energy Inc	46,632		4,571	Stanley Black &Decker Inc	16,141		1,699
NRG Energy Inc	35,016		801		$		2,674
Pepco Holdings Inc	26,545		715
PG&E Corp	50,413		2,475	Healthcare - Products - 2.10%
Pinnacle West Capital Corp	11,628		662	Baxter International Inc	57,146		3,996
PPL Corp	70,150		2,067	Becton Dickinson and Co	21,985		3,114
				Boston Scientific Corp (a)	140,769		2,492
Public Service Enterprise Group Inc	53,115		2,086
SCANA Corp	15,006		760	CR Bard Inc	7,795		1,331
Southern Co/The	95,366		3,996	Danaher Corp	64,659		5,534
TECO Energy Inc	24,687		436	DENTSPLY International Inc	14,680		757
				Edwards Lifesciences Corp (a)	11,293		1,608
WEC Energy Group Inc	33,096		1,488	Henry Schein Inc (a)	8,779		1,248
Xcel Energy Inc	53,225		1,713	Intuitive Surgical Inc (a)	3,870		1,875
	$		48,837	Medtronic PLC	149,630		11,087
Electrical Components & Equipment - 0.27%				Patterson Cos Inc	8,996		438
AMETEK Inc	25,359		1,389	St Jude Medical Inc	29,412		2,149
Emerson Electric Co	70,171		3,890	Stryker Corp	31,388		3,000
	$		5,279	Varian Medical Systems Inc (a)	10,478		884

See accompanying notes.

171

Schedule of Investments
LargeCap S&P 500 Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Healthcare - Products (continued)				Iron & Steel - 0.09%
Zimmer Biomet Holdings Inc	17,892	$	1,954	Allegheny Technologies Inc	11,467	$	346
	$		41,467	Nucor Corp	33,508		1,477
					$		1,823
Healthcare - Services - 1.90%
Aetna Inc	36,665		4,673	Leisure Products & Services - 0.25%
Anthem Inc	27,775		4,559	Carnival Corp	47,355		2,339
Cigna Corp	27,023		4,378	Harley-Davidson Inc	21,950		1,237
DaVita HealthCare Partners Inc (a)	18,054		1,435	Royal Caribbean Cruises Ltd	17,317		1,362
HCA Holdings Inc (a)	30,452		2,762		$		4,938
Humana Inc	15,726		3,008
Laboratory Corp of America Holdings (a)	10,541		1,278	Lodging - 0.25%
Quest Diagnostics Inc	15,081		1,094	Marriott International Inc/MD	21,652		1,611
Tenet Healthcare Corp (a)	10,418		603	Starwood Hotels & Resorts Worldwide Inc	17,942		1,455
UnitedHealth Group Inc	99,948		12,194	Wyndham Worldwide Corp	12,604		1,032
Universal Health Services Inc	9,571		1,360	Wynn Resorts Ltd	8,560		845
	$		37,344		$		4,943
Holding Companies - Diversified - 0.04%				Machinery - Construction & Mining - 0.29%
Leucadia National Corp	33,108		804	Caterpillar Inc	63,381		5,376
				Joy Global Inc	10,232		370
					$		5,746
Home Builders - 0.13%
DR Horton Inc	35,030		958	Machinery - Diversified - 0.55%
Lennar Corp	18,745		957	Cummins Inc	17,606		2,310
Pulte Group Inc	34,454		694	Deere & Co	35,056		3,402
	$		2,609	Flowserve Corp	14,142		745
				Rockwell Automation Inc	14,132		1,761
Home Furnishings - 0.15%				Roper Technologies Inc	10,554		1,820
Harman International Industries Inc	7,470		889	Xylem Inc/NY	19,043		706
Leggett & Platt Inc	14,468		704		$		10,744
Whirlpool Corp	8,257		1,429
	$		3,022	Media - 3.53%
				Cablevision Systems Corp	23,148		554
Housewares - 0.06%				CBS Corp	47,540		2,639
Newell Rubbermaid Inc	28,213		1,160	Comcast Corp - Class A	263,919		15,872
				DIRECTV (a)	52,793		4,899
				Discovery Communications Inc - A Shares (a)	15,660		521
Insurance - 3.91%				Discovery Communications Inc - C Shares (a)	27,414		852
ACE Ltd	34,291		3,487	Gannett Co Inc (a)	11,909		167
Aflac Inc	45,557		2,834	News Corp (a)	52,576		767
Allstate Corp/The	42,945		2,786
American International Group Inc	140,005		8,655	Nielsen NV	38,755		1,735
Aon PLC	29,581		2,949	Scripps Networks Interactive Inc	9,979		652
Assurant Inc	7,131		478	TEGNA Inc	23,819		764
Berkshire Hathaway Inc - Class B (a)	191,493		26,064	Time Warner Cable Inc	29,681		5,288
Chubb Corp/The	24,123		2,295	Time Warner Inc	86,583		7,568
Cincinnati Financial Corp	15,531		779	Twenty-First Century Fox Inc - A Shares	185,786		6,046
Genworth Financial Inc (a)	52,225		395	Viacom Inc	37,512		2,425
Hartford Financial Services Group Inc/The	44,092		1,833	Walt Disney Co/The	163,905		18,708
Lincoln National Corp	26,567		1,573		$		69,457
Loews Corp	31,195		1,201	Metal Fabrication & Hardware - 0.15%
Marsh & McLennan Cos Inc	56,532		3,205	Precision Castparts Corp	14,513		2,901
MetLife Inc	117,159		6,560
Progressive Corp/The	56,058		1,560
Prudential Financial Inc	47,564		4,163	Mining - 0.24%
Torchmark Corp	13,241		771	Alcoa Inc	128,348		1,431
Travelers Cos Inc/The	33,462		3,234	Freeport-McMoRan Inc	109,203		2,034
Unum Group	26,198		937	Newmont Mining Corp	55,528		1,297
XL Group PLC	32,196		1,198		$		4,762
	$		76,957	Miscellaneous Manufacturing - 2.73%
Internet - 4.81%				3M Co	66,605		10,277
Amazon.com Inc (a)	40,094		17,404	Dover Corp	16,840		1,182
eBay Inc (a)	116,075		6,992	Eaton Corp PLC	49,044		3,310
Expedia Inc	10,468		1,145	General Electric Co	1,057,961		28,110
F5 Networks Inc (a)	7,552		909	Illinois Tool Works Inc	35,518		3,260
Facebook Inc (a)	221,146		18,967	Ingersoll-Rand PLC	27,795		1,874
Google Inc - A Shares (a)	30,050		16,228	Pall Corp	11,217		1,396
Google Inc - C Shares (a)	30,136		15,686	Parker-Hannifin Corp	14,560		1,694
Netflix Inc (a)	6,365		4,181	Pentair PLC	18,861		1,297
Priceline Group Inc/The (a)	5,442		6,266	Textron Inc	29,152		1,301
Symantec Corp	71,475		1,662		$		53,701
TripAdvisor Inc (a)	11,753		1,024
VeriSign Inc (a)	11,002		679	Office & Business Equipment - 0.08%
Yahoo! Inc (a)	91,638		3,601	Pitney Bowes Inc	21,176		441
				Xerox Corp	108,958		1,159
	$		94,744		$		1,600

See accompanying notes.

172

Schedule of Investments
LargeCap S&P 500 Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held   Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Oil & Gas - 5.75%				Publicly Traded Investment Fund - 0.82%
Anadarko Petroleum Corp	53,332	$	4,163	iShares Core S&P 500 ETF	78,116	$	16,187
Apache Corp	39,594		2,282
Cabot Oil & Gas Corp	43,427		1,370
				Real Estate - 0.05%
Chesapeake Energy Corp	54,344		607	CBRE Group Inc (a)	29,368		1,087
Chevron Corp	197,448		19,048
Cimarex Energy Co	9,835		1,085
ConocoPhillips	129,458		7,950	REITS - 2.37%
Devon Energy Corp	40,575		2,414	American Tower Corp	44,423		4,144
Diamond Offshore Drilling Inc	7,056		182	Apartment Investment & Management Co	16,409		606
Ensco PLC	24,605		548	AvalonBay Communities Inc	13,879		2,219
EOG Resources Inc	57,637		5,046	Boston Properties Inc	16,107		1,950
EQT Corp	15,996		1,301	Crown Castle International Corp	35,435		2,845
Exxon Mobil Corp	439,011		36,526	Equinix Inc	5,976		1,518
Helmerich & Payne Inc	11,303		796	Equity Residential	38,218		2,682
Hess Corp	25,648		1,715	Essex Property Trust Inc	6,861		1,458
Marathon Oil Corp	70,869		1,881	General Growth Properties Inc	66,066		1,695
Marathon Petroleum Corp	57,043		2,984	HCP Inc	48,475		1,768
Murphy Oil Corp	17,565		730	Health Care REIT Inc	36,857		2,419
Newfield Exploration Co (a)	17,093		618	Host Hotels & Resorts Inc	79,555		1,578
Noble Corp PLC	25,405		391	Iron Mountain Inc	19,676		610
Noble Energy Inc	40,635		1,734	Kimco Realty Corp	43,338		977
Occidental Petroleum Corp	80,651		6,272	Macerich Co/The	14,789		1,103
Phillips 66	56,943		4,587	Plum Creek Timber Co Inc	18,440		748
Pioneer Natural Resources Co	15,676		2,174	Prologis Inc	55,024		2,041
Range Resources Corp	17,483		863	Public Storage	15,249		2,812
Southwestern Energy Co (a)	40,633		924	Realty Income Corp	24,416		1,084
Tesoro Corp	13,222		1,116	Simon Property Group Inc	32,682		5,655
Transocean Ltd	35,862		578	SL Green Realty Corp	10,456		1,149
Valero Energy Corp	53,404		3,343	Ventas Inc	34,742		2,157
	$		113,228	Vornado Realty Trust	18,384		1,745
				Weyerhaeuser Co	54,362		1,712
Oil & Gas Services - 1.13%					$		46,675
Baker Hughes Inc	45,640		2,816
Cameron International Corp (a)	20,097		1,052	Retail - 6.36%
FMC Technologies Inc (a)	24,245		1,006	AutoNation Inc (a)	7,901		498
Halliburton Co	89,340		3,848	AutoZone Inc (a)	3,330		2,221
National Oilwell Varco Inc	40,725		1,966	Bed Bath & Beyond Inc (a)	17,987		1,241
Schlumberger Ltd	133,319		11,491	Best Buy Co Inc	30,743		1,003
	$		22,179	CarMax Inc (a)	21,968		1,454
				Chipotle Mexican Grill Inc (a)	3,259		1,972
Packaging & Containers - 0.21%				Coach Inc	29,009		1,004
Ball Corp	14,474		1,015	Costco Wholesale Corp	46,145		6,232
MeadWestvaco Corp	35,049		1,654	CVS Health Corp	118,473		12,425
Owens-Illinois Inc (a)	16,931		389
				Darden Restaurants Inc	13,208		939
Sealed Air Corp	22,067		1,134	Dollar General Corp	31,196		2,425
	$		4,192	Dollar Tree Inc (a)	21,649		1,710
Pharmaceuticals - 7.71%				Family Dollar Stores Inc	10,094		795
Abbott Laboratories	156,317		7,672	GameStop Corp	11,205		481
AbbVie Inc	180,552		12,131	Gap Inc/The	27,607		1,054
Allergan PLC (a)	41,206		12,504	Home Depot Inc/The	136,391		15,157
AmerisourceBergen Corp	21,913		2,330	Kohl's Corp	20,776		1,301
Bristol-Myers Squibb Co	175,030		11,647	L Brands Inc	25,750		2,208
Cardinal Health Inc	34,737		2,906	Lowe's Cos Inc	97,931		6,558
Eli Lilly & Co	102,539		8,561	Macy's Inc	35,322		2,383
Endo International PLC (a)	21,290		1,696	McDonald's Corp	100,643		9,568
Express Scripts Holding Co (a)	76,574		6,810	Nordstrom Inc	14,804		1,103
Hospira Inc (a)	18,141		1,609	O'Reilly Automotive Inc (a)	10,603		2,396
Johnson & Johnson	291,166		28,377	PVH Corp	8,682		1,000
Mallinckrodt PLC (a)	12,282		1,446	Ross Stores Inc	43,447		2,112
McKesson Corp	24,312		5,466	Staples Inc	67,267		1,030
Mead Johnson Nutrition Co	21,266		1,919	Starbucks Corp	157,550		8,447
Merck & Co Inc	296,645		16,888	Target Corp	67,040		5,472
Mylan NV (a)	43,220		2,933	Tiffany & Co	11,798		1,083
Perrigo Co PLC	15,357		2,838	TJX Cos Inc/The	71,439		4,727
Pfizer Inc (b)	646,548		21,679	Tractor Supply Co	14,324		1,288
Zoetis Inc	52,495		2,531	Urban Outfitters Inc (a)	10,224		358
	$		151,943	Walgreens Boots Alliance Inc	91,622		7,737
				Wal-Mart Stores Inc	165,695		11,753
Pipelines - 0.72%				Yum! Brands Inc	45,401		4,090
Kinder Morgan Inc/DE	182,123		6,992		$		125,225
ONEOK Inc	21,919		865
Spectra Energy Corp	70,488		2,298	Savings & Loans - 0.05%
Williams Cos Inc/The	70,781		4,062	Hudson City Bancorp Inc	50,596		500
	$		14,217

See accompanying notes.

173

Schedule of Investments
LargeCap S&P 500 Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held           Value (000's)			INVESTMENT COMPANIES - 2.26%		Shares Held		Value (000			's)
Savings & Loans (continued)				Publicly Traded Investment Fund - 2.26%
People's United Financial Inc	32,456	$	526	BlackRock Liquidity Funds FedFund Portfolio		44,582,885			$	44,583
	$		1,026
				TOTAL INVESTMENT COMPANIES				$		44,583
Semiconductors - 2.86%
Altera Corp	31,614		1,619	Total Investments			$	1,973,581
Analog Devices Inc	32,921		2,113	Liabilities in Excess of Other Assets, Net - (0.17)%				$		(3,290	)
Applied Materials Inc	129,316		2,486	TOTAL NET ASSETS - 100.00%			$	1,970,291
Avago Technologies Ltd	26,941		3,581
Broadcom Corp	57,102		2,940
Intel Corp	498,114		15,150	(a)	Non-Income Producing Security
KLA-Tencor Corp	16,791		944	(b)	Security or a portion of the security was pledged to cover margin
Lam Research Corp	16,623		1,352		requirements for futures contracts. At the end of the period, the value of
Linear Technology Corp	25,143		1,112		these securities totaled $5,556 or 0.28% of net assets.
Microchip Technology Inc	21,243		1,008
Micron Technology Inc (a)	113,116		2,131
NVIDIA Corp	53,664		1,079		Portfolio Summary (unaudited)
Qorvo Inc (a)	15,690		1,259	Sector						Percent
Qualcomm Inc	171,102		10,716	Consumer, Non-cyclical						23.35	%
Skyworks Solutions Inc	20,065		2,089	Financial						16.53	%
Texas Instruments Inc	109,236		5,627	Technology						12.95	%
Xilinx Inc	27,152		1,199	Communications						11.52	%
	$		56,405	Consumer, Cyclical						9.87	%
Software - 4.00%				Industrial						9.70	%
Adobe SystemsInc (a)	49,901		4,042	Energy						7.65	%
Akamai Technologies Inc (a)	18,748		1,309	Exchange Traded Funds						3.08	%
Autodesk Inc (a)	23,903		1,197	Utilities						2.75	%
CA Inc	33,239		974	Basic Materials						2.73	%
Cerner Corp (a)	32,153		2,220	Diversified						0.04	%
Citrix Systems Inc (a)	16,830		1,181	Liabilities in Excess of Other Assets, Net						(0.17	)%
Dun & Bradstreet Corp/The	3,783		462	TOTAL NET ASSETS						100.00	%
Electronic Arts Inc (a)	32,647		2,171
Fidelity National Information Services Inc	29,763		1,839
Fiserv Inc (a)	24,862		2,059
Intuit Inc	28,944		2,917
Microsoft Corp	849,396		37,501
Oracle Corp	334,732		13,490
Paychex Inc	34,324		1,609
Red Hat Inc (a)	19,248		1,462
Salesforce.com inc (a)	64,014		4,457
	$		78,890
Telecommunications - 3.05%
AT&T Inc	545,259		19,368
CenturyLink Inc	59,194		1,739
Cisco Systems Inc	534,012		14,664
Frontier Communications Corp	121,096		599
Juniper Networks Inc	36,897		958
Level 3 Communications Inc (a)	30,890		1,627
Motorola Solutions Inc	19,490		1,118
Verizon Communications Inc	428,236		19,960
	$		60,033
Textiles - 0.06%
Mohawk Industries Inc (a)	6,523		1,245
Toys, Games & Hobbies - 0.09%
Hasbro Inc	11,763		880
Mattel Inc	35,525		912
	$		1,792
Transportation - 1.57%
CH Robinson Worldwide Inc	15,312		955
CSX Corp	103,736		3,387
Expeditors International of Washington Inc	20,083		926
FedEx Corp	27,679		4,717
JB Hunt Transport Services Inc	9,654		792
Kansas City Southern	11,607		1,059
Norfolk Southern Corp	32,008		2,796
Ryder System Inc	5,597		489
Union Pacific Corp	91,936		8,768
United Parcel Service Inc	72,865		7,061
	$		30,950
TOTAL COMMON STOCKS	$		1,928,998

See accompanying notes.

174

		Schedule of Investments
LargeCap S&P 500 Index Account
June 30, 2015 (unaudited)
Futures Contracts
									Unrealized
Type	Long/Short	Contracts		Notional Value		Fair Value	Appreciation/(Depreciation)
S&P 500 Emini; September 2015	Long	421	$	43,871	$	43,245		$	(626	)
Total							$		(626	)
Amounts in thousands except contracts

See accompanying notes.

175

Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
June 30, 2015 (unaudited)
COMMON STOCKS - 89.62%	Shares Held       Value (000's)			COMMON STOCKS (continued)	Shares Held     Value (000's)
Advertising - 0.12%				Beverages - 1.89%
Interpublic Group of Cos Inc/The	2,766	$	53	Brown-Forman Corp	1,044	$	105
Omnicom Group Inc	1,636		114	Coca-Cola Co/The	26,284		1,031
	$		167	Coca-Cola Enterprises Inc	1,436		62
				Constellation Brands Inc	1,135		132
Aerospace & Defense - 1.78%				Dr Pepper Snapple Group Inc	1,284		94
Boeing Co/The	4,309		598	Keurig Green Mountain Inc	773		59
General Dynamics Corp	2,092		296	Molson Coors Brewing Co	1,069		75
Harris Corp	825		63	Monster Beverage Corp (a)	980		131
L-3 Communications Holdings Inc	551		63	PepsiCo Inc	9,890		923
Lockheed Martin Corp	1,792		333		$		2,612
Northrop Grumman Corp	1,298		206
Raytheon Co	2,044		196	Biotechnology - 2.84%
Rockwell Collins Inc	886		82	Alexion Pharmaceuticals Inc (a)	1,500		271
United Technologies Corp	5,547		615	Amgen Inc	5,094		782
	$		2,452	Biogen Inc (a)	1,576		636
				Celgene Corp (a)	5,314		615
Agriculture - 1.37%				Gilead Sciences Inc	9,846		1,153
Altria Group Inc	13,176		645	Regeneron Pharmaceuticals Inc (a)	505		258
Archer-Daniels-Midland Co	4,156		200	Vertex Pharmaceuticals Inc (a)	1,633		202
Philip Morris International Inc	10,379		832		$		3,917
Reynolds American Inc	2,785		208
	$		1,885	Building Materials - 0.14%
				Martin Marietta Materials Inc	415		59
Airlines - 0.41%				Masco Corp	2,329		62
American Airlines Group Inc	4,641		186	Vulcan Materials Co	888		74
Delta Air Lines Inc	5,503		226		$		195
Southwest Airlines Co	4,477		148
	$		560	Chemicals - 2.09%
				Air Products & Chemicals Inc	1,295		177
Apparel - 0.69%				Airgas Inc	455		48
Hanesbrands Inc	2,691		90	CF Industries Holdings Inc	1,576		101
Michael Kors Holdings Ltd (a)	1,331		56	Dow Chemical Co/The	7,261		372
Nike Inc	4,666		504	Eastman Chemical Co	998		82
Ralph Lauren Corp	404		53	Ecolab Inc	1,795		203
Under Armour Inc (a)	1,126		94	EI du Pont de Nemours & Co	6,065		388
VF Corp	2,277		159	FMC Corp	894		47
	$		956	International Flavors & Fragrances Inc	541		59
Automobile Manufacturers - 0.62%				LyondellBasell Industries NV	2,632		272
Ford Motor Co	26,636		400	Monsanto Co	3,190		340
General Motors Co	9,045		301	Mosaic Co/The	2,079		97
PACCAR Inc	2,377		152	PPG Industries Inc	1,821		209
	$		853	Praxair Inc	1,931		231
				Sherwin-Williams Co/The	530		146
Automobile Parts & Equipment - 0.38%				Sigma-Aldrich Corp	800		112
BorgWarner Inc	1,516		86		$		2,884
Delphi Automotive PLC	1,934		165
Goodyear Tire & Rubber Co/The	1,807		55	Coal - 0.02%
Johnson Controls Inc	4,387		217	Consol Energy Inc	1,533		33
	$		523
				Commercial Services - 1.20%
Banks - 6.86%
Bank of America Corp	70,367		1,198	ADT Corp/The	1,147		39
Bank of New York Mellon Corp/The	7,514		315	Automatic Data Processing Inc	3,145		252
BB&T Corp	4,897		198	Cintas Corp	636		54
Capital One Financial Corp	3,661		322	Equifax Inc	797		77
Citigroup Inc	20,329		1,123	H&R Block Inc	1,844		55
Comerica Inc	1,192		61	MasterCard Inc	6,493		607
Fifth Third Bancorp	5,426		113	McGraw Hill Financial Inc	1,833		184
Goldman Sachs Group Inc/The	2,692		562	Moody's Corp	1,192		129
				Quanta Services Inc (a)	1,419		41
Huntington Bancshares Inc/OH	5,417		61
JP Morgan Chase & Co	24,865		1,685	Robert Half International Inc	905		50
KeyCorp	5,683		85	Total System Services Inc	1,099		46
				United Rentals Inc (a)	649		57
M&T Bank Corp	890		111
Morgan Stanley	10,295		399	Western Union Co/The	3,459		70
Northern Trust Corp	1,469		112		$		1,661
PNC Financial Services Group Inc/The	3,470		332	Computers - 5.55%
Regions Financial Corp	8,980		93	Accenture PLC - Class A	4,196		406
State Street Corp	2,758		213	Apple Inc	38,600		4,842
SunTrust Banks Inc	3,458		149	Cognizant Technology Solutions Corp (a)	4,090		250
US Bancorp/MN	11,879		516	Computer Sciences Corp	922		61
Wells Fargo & Co	31,396		1,766	EMC Corp/MA	13,012		343
Zions Bancorporation	1,361		43	Hewlett-Packard Co	12,103		363
	$		9,457	International Business Machines Corp	6,136		998
				NetApp Inc	2,089		66
				SanDisk Corp	1,393		81

See accompanying notes.

176

Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held      Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Computers (continued)				Electronics - 1.27%
Seagate Technology PLC	2,126	$	101	Agilent Technologies Inc	2,232	$	86
Teradata Corp (a)	951		35	Allegion PLC	641		39
Western Digital Corp	1,454		114	Amphenol Corp	2,069		120
	$		7,660	Corning Inc	8,432		166
				FLIR Systems Inc	938		29
Consumer Products - 0.28%				Garmin Ltd	808		35
Avery Dennison Corp	609		37	Honeywell International Inc	5,237		534
Clorox Co/The	878		91	PerkinElmer Inc	758		40
Kimberly-Clark Corp	2,439		259	TE Connectivity Ltd	2,724		175
	$		387	Thermo Fisher Scientific Inc	2,667		346
Cosmetics & Personal Care - 1.40%				Tyco International PLC	2,821		109
Colgate-Palmolive Co	5,697		373	Waters Corp (a)	554		71
Estee Lauder Cos Inc/The	1,495		129		$		1,750
Procter & Gamble Co/The	18,177		1,422	Energy - Alternate Sources - 0.02%
	$		1,924	First Solar Inc (a)	506		24
Distribution & Wholesale - 0.20%
Fastenal Co	1,821		77	Engineering & Construction - 0.06%
Fossil Group Inc (a)	287		20	Fluor Corp	987		52
Genuine Parts Co	1,019		91	Jacobs Engineering Group Inc (a)	841		34
WW Grainger Inc	399		94		$		86
	$		282
				Environmental Control - 0.20%
Diversified Financial Services - 2.40%				Republic Services Inc	1,671		66
Affiliated Managers Group Inc (a)	366		80	Stericycle Inc (a)	569		76
Alliance Data Systems Corp (a)	415		121	Waste Management Inc	2,852		132
American Express Co	5,853		455		$		274
Ameriprise Financial Inc	1,215		152
BlackRock Inc	850		294	Food - 1.55%
Charles Schwab Corp/The	7,744		253	Campbell Soup Co	1,190		57
CME Group Inc/IL	2,126		198	ConAgra Foods Inc	2,861		125
Discover Financial Services	2,964		171	General Mills Inc	3,994		223
E*Trade Financial Corp (a)	1,942		58	Hershey Co/The	983		87
Franklin Resources Inc	2,613		128	Hormel Foods Corp	903		51
Intercontinental Exchange Inc	748		167	JM Smucker Co/The	649		70
Invesco Ltd	2,885		108	Kellogg Co	1,678		105
Legg Mason Inc	653		33	Kraft Foods Group Inc	3,968		338
NASDAQ OMX Group Inc/The	793		39	Kroger Co/The	3,284		238
Navient Corp	2,606		47	McCormick & Co Inc/MD	856		69
T Rowe Price Group Inc	1,760		137	Mondelez International Inc	10,898		448
Visa Inc	12,952		870	Sysco Corp	3,978		144
	$		3,311	Tyson Foods Inc	1,954		83
				Whole Foods Market Inc	2,400		95
Electric - 2.26%					$		2,133
AES Corp/VA	4,572		61
Ameren Corp	1,625		61	Forest Products & Paper - 0.10%
American Electric Power Co Inc	3,282		174	International Paper Co	2,833		135
CMS Energy Corp	1,849		59
Consolidated Edison Inc	1,962		113	Gas - 0.25%
Dominion Resources Inc/VA	3,976		266	AGL Resources Inc	803		37
DTE Energy Co	1,201		90	CenterPoint Energy Inc	2,882		55
Duke Energy Corp	4,633		327	NiSource Inc	2,126		97
Edison International	2,183		121	Sempra Energy	1,559		154
Entergy Corp	1,202		85		$		343
Eversource Energy	2,128		97
Exelon Corp	5,770		181	Hand & Machine Tools - 0.12%
FirstEnergy Corp	2,827		92	Snap-on Inc	390		62
NextEra Energy Inc	2,975		292	Stanley Black &Decker Inc	1,030		109
NRG Energy Inc	2,234		51		$		171
Pepco Holdings Inc	1,693		46
PG&E Corp	3,217		158	Healthcare - Products - 1.92%
Pinnacle West Capital Corp	742		42	Baxter International Inc	3,646		255
PPL Corp	4,476		132	Becton Dickinson and Co	1,402		199
				Boston Scientific Corp (a)	8,982		159
Public Service Enterprise Group Inc	3,389		133
SCANA Corp	957		48	CR Bard Inc	497		85
Southern Co/The	6,085		255	Danaher Corp	4,126		353
TECO Energy Inc	1,575		28	DENTSPLY International Inc	936		48
				Edwards Lifesciences Corp (a)	720		103
WEC Energy Group Inc	2,110		95	Henry Schein Inc (a)	560		80
Xcel Energy Inc	3,396		109	Intuitive Surgical Inc (a)	246		119
	$		3,116	Medtronic PLC	9,548		707
Electrical Components & Equipment - 0.24%				Patterson Cos Inc	574		28
AMETEK Inc	1,618		89	St Jude Medical Inc	1,876		137
Emerson Electric Co	4,477		248	Stryker Corp	2,003		191
	$		337	Varian Medical Systems Inc (a)	668		56

See accompanying notes.

177

Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Healthcare - Products (continued)				Iron & Steel - 0.08%
Zimmer Biomet Holdings Inc	1,141	$	125	Allegheny Technologies Inc	731	$	22
	$		2,645	Nucor Corp	2,138		94
					$		116
Healthcare - Services - 1.73%
Aetna Inc	2,339		298	Leisure Products & Services - 0.23%
Anthem Inc	1,772		291	Carnival Corp	3,021		149
Cigna Corp	1,724		279	Harley-Davidson Inc	1,400		79
DaVita HealthCare Partners Inc (a)	1,152		92	Royal Caribbean Cruises Ltd	1,105		87
HCA Holdings Inc (a)	1,943		176		$		315
Humana Inc	1,003		192
Laboratory Corp of America Holdings (a)	672		81	Lodging - 0.23%
Quest Diagnostics Inc	962		70	Marriott International Inc/MD	1,381		102
Tenet Healthcare Corp (a)	664		38	Starwood Hotels & Resorts Worldwide Inc	1,144		93
UnitedHealth Group Inc	6,378		778	Wyndham Worldwide Corp	804		66
Universal Health Services Inc	610		87	Wynn Resorts Ltd	546		54
	$		2,382		$		315
Holding Companies - Diversified - 0.04%				Machinery - Construction & Mining - 0.27%
Leucadia National Corp	2,112		51	Caterpillar Inc	4,044		343
				Joy Global Inc	652		24
					$		367
Home Builders - 0.12%
DR Horton Inc	2,235		61	Machinery - Diversified - 0.50%
Lennar Corp	1,196		61	Cummins Inc	1,123		147
Pulte Group Inc	2,198		44	Deere & Co	2,237		217
	$		166	Flowserve Corp	902		48
				Rockwell Automation Inc	901		112
Home Furnishings - 0.14%				Roper Technologies Inc	673		116
Harman International Industries Inc	476		57	Xylem Inc/NY	1,215		45
Leggett & Platt Inc	923		45		$		685
Whirlpool Corp	526		91
	$		193	Media - 3.21%
				Cablevision Systems Corp	1,477		35
Housewares - 0.05%				CBS Corp	3,033		168
Newell Rubbermaid Inc	1,800		74	Comcast Corp - Class A	16,841		1,013
				DIRECTV (a)	3,368		312
				Discovery Communications Inc - A Shares (a)	999		33
Insurance - 3.56%				Discovery Communications Inc - C Shares (a)	1,749		54
ACE Ltd	2,188		222	Gannett Co Inc (a)	760		11
Aflac Inc	2,907		181	News Corp (a)	3,355		49
Allstate Corp/The	2,740		178
American International Group Inc	8,934		552	Nielsen NV	2,473		111
Aon PLC	1,887		188	Scripps Networks Interactive Inc	636		42
Assurant Inc	455		30	TEGNA Inc	1,520		49
Berkshire Hathaway Inc - Class B (a)	12,219		1,663	Time Warner Cable Inc	1,894		337
Chubb Corp/The	1,539		146	Time Warner Inc	5,525		483
Cincinnati Financial Corp	991		50	Twenty-First Century Fox Inc - A Shares	11,855		386
Genworth Financial Inc (a)	3,332		25	Viacom Inc	2,393		155
Hartford Financial Services Group Inc/The	2,813		117	Walt Disney Co/The	10,459		1,194
Lincoln National Corp	1,695		100		$		4,432
Loews Corp	1,990		77	Metal Fabrication & Hardware - 0.13%
Marsh & McLennan Cos Inc	3,607		205	Precision Castparts Corp	926		185
MetLife Inc	7,476		419
Progressive Corp/The	3,577		100
Prudential Financial Inc	3,035		266	Mining - 0.22%
Torchmark Corp	844		49	Alcoa Inc	8,190		91
Travelers Cos Inc/The	2,135		206	Freeport-McMoRan Inc	6,968		130
Unum Group	1,671		60	Newmont Mining Corp	3,543		83
XL Group PLC	2,054		76		$		304
	$		4,910	Miscellaneous Manufacturing - 2.48%
Internet - 4.38%				3M Co	4,250		656
Amazon.com Inc (a)	2,558		1,111	Dover Corp	1,074		75
eBay Inc (a)	7,407		446	Eaton Corp PLC	3,129		211
Expedia Inc	668		73	General Electric Co (b)	67,512		1,794
F5 Networks Inc (a)	481		58	Illinois Tool Works Inc	2,266		208
Facebook Inc (a)	14,112		1,210	Ingersoll-Rand PLC	1,773		119
Google Inc - A Shares (a)	1,917		1,035	Pall Corp	715		89
Google Inc - C Shares (a)	1,923		1,001	Parker-Hannifin Corp	929		108
Netflix Inc (a)	406		267	Pentair PLC	1,203		83
Priceline Group Inc/The (a)	347		400	Textron Inc	1,860		83
Symantec Corp	4,561		106		$		3,426
TripAdvisor Inc (a)	750		65
VeriSign Inc (a)	702		43	Office & Business Equipment - 0.07%
Yahoo! Inc (a)	5,847		230	Pitney Bowes Inc	1,351		28
				Xerox Corp	6,953		74
	$		6,045		$		102

See accompanying notes.

178

Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held  Value (000's)
Oil & Gas - 5.24%				Publicly Traded Investment Fund - 1.14%
Anadarko Petroleum Corp	3,403	$	266	iShares Core S&P 500 ETF	7,561	$	1,567
Apache Corp	2,526		146
Cabot Oil & Gas Corp	2,771		87
				Real Estate - 0.05%
Chesapeake Energy Corp	3,467		39	CBRE Group Inc (a)	1,874		69
Chevron Corp	12,599		1,215
Cimarex Energy Co	627		69
ConocoPhillips	8,261		507	REITS - 2.16%
Devon Energy Corp	2,589		154	American Tower Corp	2,834		264
Diamond Offshore Drilling Inc	450		12	Apartment Investment & Management Co	1,047		39
Ensco PLC	1,570		35	AvalonBay Communities Inc	885		142
EOG Resources Inc	3,678		322	Boston Properties Inc	1,027		124
EQT Corp	1,020		83	Crown Castle International Corp	2,261		182
Exxon Mobil Corp (b)	28,014		2,331	Equinix Inc	381		97
Helmerich & Payne Inc	721		51	Equity Residential	2,438		171
Hess Corp	1,636		109	Essex Property Trust Inc	437		93
Marathon Oil Corp	4,522		120	General Growth Properties Inc	4,215		108
Marathon Petroleum Corp	3,640		190	HCP Inc	3,093		113
Murphy Oil Corp	1,120		47	Health Care REIT Inc	2,352		154
Newfield Exploration Co (a)	1,090		39	Host Hotels & Resorts Inc	5,076		101
Noble Corp PLC	1,621		25	Iron Mountain Inc	1,255		39
Noble Energy Inc	2,593		111	Kimco Realty Corp	2,765		62
Occidental Petroleum Corp	5,146		400	Macerich Co/The	943		70
Phillips 66	3,633		293	Plum Creek Timber Co Inc	1,176		48
Pioneer Natural Resources Co	1,000		139	Prologis Inc	3,511		130
Range Resources Corp	1,115		55	Public Storage	973		180
Southwestern Energy Co (a)	2,592		59	Realty Income Corp	1,558		69
Tesoro Corp	843		71	Simon Property Group Inc	2,085		361
Transocean Ltd	2,288		37	SL Green Realty Corp	667		73
Valero Energy Corp	3,407		213	Ventas Inc	2,217		138
	$		7,225	Vornado Realty Trust	1,173		111
				Weyerhaeuser Co	3,469		109
Oil & Gas Services - 1.03%					$		2,978
Baker Hughes Inc	2,912		180
Cameron International Corp (a)	1,282		67	Retail - 5.79%
FMC Technologies Inc (a)	1,547		64	AutoNation Inc (a)	504		32
Halliburton Co	5,701		246	AutoZone Inc (a)	212		141
National Oilwell Varco Inc	2,598		125	Bed Bath & Beyond Inc (a)	1,147		79
Schlumberger Ltd	8,507		733	Best Buy Co Inc	1,961		64
	$		1,415	CarMax Inc (a)	1,401		93
				Chipotle Mexican Grill Inc (a)	208		126
Packaging & Containers - 0.19%				Coach Inc	1,851		64
Ball Corp	923		65	Costco Wholesale Corp	2,944		398
MeadWestvaco Corp	2,236		105	CVS Health Corp	7,560		793
Owens-Illinois Inc (a)	1,080		25
				Darden Restaurants Inc	842		60
Sealed Air Corp	1,408		72	Dollar General Corp	1,990		155
	$		267	Dollar Tree Inc (a)	1,381		109
Pharmaceuticals - 7.03%				Family Dollar Stores Inc	644		51
Abbott Laboratories	9,975		490	GameStop Corp	715		31
AbbVie Inc	11,521		774	Gap Inc/The	1,761		67
Allergan PLC (a)	2,629		798	Home Depot Inc/The	8,703		967
AmerisourceBergen Corp	1,398		149	Kohl's Corp	1,325		83
Bristol-Myers Squibb Co	11,169		743	L Brands Inc	1,643		141
Cardinal Health Inc	2,216		185	Lowe's Cos Inc	6,249		418
Eli Lilly & Co	6,543		546	Macy's Inc	2,254		152
Endo International PLC (a)	1,358		108	McDonald's Corp	6,422		610
Express Scripts Holding Co (a)	4,886		435	Nordstrom Inc	944		70
Hospira Inc (a)	1,157		103	O'Reilly Automotive Inc (a)	676		153
Johnson & Johnson	18,580		1,811	PVH Corp	554		64
Mallinckrodt PLC (a)	783		92	Ross Stores Inc	2,772		135
McKesson Corp	1,551		349	Staples Inc	4,292		66
Mead Johnson Nutrition Co	1,357		122	Starbucks Corp	10,053		539
Merck & Co Inc	18,929		1,078	Target Corp	4,278		349
Mylan NV (a)	2,758		187	Tiffany & Co	752		69
Perrigo Co PLC	980		181	TJX Cos Inc/The	4,558		301
Pfizer Inc	41,258		1,383	Tractor Supply Co	914		82
Zoetis Inc	3,349		161	Urban Outfitters Inc (a)	652		23
	$		9,695	Walgreens Boots Alliance Inc	5,846		494
				Wal-Mart Stores Inc	10,573		750
Pipelines - 0.66%				Yum! Brands Inc	2,897		261
Kinder Morgan Inc/DE	11,621		446		$		7,990
ONEOK Inc	1,398		55
Spectra Energy Corp	4,498		147	Savings & Loans - 0.05%
Williams Cos Inc/The	4,516		259	Hudson City Bancorp Inc	3,228		32
	$		907

See accompanying notes.

179

Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held      Value (000's)			INVESTMENT COMPANIES - 10.42%		Shares Held	Value (000			's)
Savings & Loans (continued)				Publicly Traded Investment Fund - 10.42%
People's United Financial Inc	2,071	$	33	BlackRock Liquidity Funds FedFund Portfolio		14,376,136		$	14,376
	$		65
				TOTAL INVESTMENT COMPANIES			$		14,376
Semiconductors - 2.61%				TOTAL PURCHASED OPTIONS - 0.64%			$		880
Altera Corp	2,017		103
Analog Devices Inc	2,100		135	Total Investments			$		138,867
Applied Materials Inc	8,252		159	Liabilities in Excess of Other Assets, Net - (0.68)%			$		(940	)
Avago Technologies Ltd	1,719		229	TOTAL NET ASSETS - 100.00%			$		137,927
Broadcom Corp	3,643		188
Intel Corp	31,786		967
KLA-Tencor Corp	1,071		60	(a)	Non-Income Producing Security
Lam Research Corp	1,060		86	(b)	Security or a portion of the security was pledged to cover margin
Linear Technology Corp	1,604		71		requirements for futures contracts. At the end of the period, the value of
Microchip Technology Inc	1,355		64		these securities totaled $1,345 or 0.98% of net assets.
Micron Technology Inc (a)	7,218		136
NVIDIA Corp	3,424		69
Qorvo Inc (a)	1,001		80
					Portfolio Summary (unaudited)
Qualcomm Inc	10,918		684	Sector					Percent
Skyworks Solutions Inc	1,280		133	Consumer, Non-cyclical					21.28	%
Texas Instruments Inc	6,970		359	Financial					15.08	%
Xilinx Inc	1,732		76	Technology					11.81	%
	$		3,599	Exchange Traded Funds					11.56	%
Software - 3.65%				Communications					10.49	%
Adobe Systems Inc (a)	3,184		258	Consumer, Cyclical					9.00	%
Akamai Technologies Inc (a)	1,196		84	Industrial					8.81	%
Autodesk Inc (a)	1,525		76	Energy					6.97	%
CA Inc	2,121		62	Utilities					2.51	%
Cerner Corp (a)	2,051		142	Basic Materials					2.49	%
Citrix Systems Inc (a)	1,073		75	Purchased Options					0.64	%
Dun & Bradstreet Corp/The	241		30	Diversified					0.04	%
Electronic Arts Inc (a)	2,083		139	Liabilities in Excess of Other Assets, Net					(0.68	)%
Fidelity National Information Services Inc	1,899		117	TOTAL NET ASSETS					100.00	%
Fiserv Inc (a)	1,586		131
Intuit Inc	1,847		186
Microsoft Corp (b)	54,202		2,393
Oracle Corp	21,360		861
Paychex Inc	2,190		103
Red Hat Inc (a)	1,228		93
Salesforce.com inc (a)	4,084		284
	$		5,034
Telecommunications - 2.78%
AT&T Inc	34,794		1,236
CenturyLink Inc	3,777		111
Cisco Systems Inc	34,077		936
Frontier Communications Corp	7,727		38
Juniper Networks Inc	2,354		61
Level 3 Communications Inc (a)	1,971		104
Motorola Solutions Inc	1,243		71
Verizon Communications Inc	27,327		1,274
	$		3,831
Textiles - 0.06%
Mohawk Industries Inc (a)	416		79
Toys, Games & Hobbies - 0.08%
Hasbro Inc	750		56
Mattel Inc	2,266		58
	$		114
Transportation - 1.43%
CH Robinson Worldwide Inc	977		61
CSX Corp	6,619		216
Expeditors International of Washington Inc	1,281		59
FedEx Corp	1,766		301
JB Hunt Transport Services Inc	616		51
Kansas City Southern	740		68
Norfolk Southern Corp	2,042		178
Ryder System Inc	357		31
Union Pacific Corp	5,866		559
United Parcel Service Inc	4,649		451
	$		1,975
TOTAL COMMON STOCKS	$		123,611

See accompanying notes.

180

				Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
June 30, 2015 (unaudited)
Futures Contracts
															Unrealized
Type		Long/Short		Contracts		Notional Value					Fair Value		Appreciation/(Depreciation)
S&P 500 Emini; September 2015			Long		73	$		7,605	$		7,499			$	(106	)
Total													$		(106	)
Amounts in thousands except contracts
Options
								Upfront Premiums							Unrealized
Purchased Options Outstanding		Exercise Price	Expiration Date		Contracts			Paid/(Received)			Fair Value		Appreciation/(Depreciation)
Call - S&P 500 Index	$	2,135.00	07/06/2015			90	$	42		$	—		$		(42	)
Put - S&P 500 Index	$	2,070.00	07/13/2015			200		490			577				87
Put - S&P 500 Index	$	2,090.00	07/06/2015			100		88			303				215
Total							$	620		$	880		$		260
								Upfront Premiums							Unrealized
Written Options Outstanding		Exercise Price	Expiration Date		Contracts			Paid/(Received)			Fair Value		Appreciation/(Depreciation)
Call - S&P 500 Index	$	2,140.00	07/06/2015			90	$	(30	)	$	(1	)	$		29
Put - S&P 500 Index	$	2,060.00	07/13/2015			200		(421	)		(485	)			(64	)
Put - S&P 500 Index	$	2,085.00	07/06/2015			100		(76	)		(262	)			(186	)
Total							$	(527	)	$	(748	)	$		(221	)
Amounts in thousands except contracts

See accompanying notes.

181

Schedule of Investments
LargeCap Value Account
June 30, 2015 (unaudited)
COMMON STOCKS - 99.55%	Shares Held      Value (000's)			COMMON STOCKS (continued)		Shares Held	Value (000			's)
Aerospace & Defense - 5.51%				Miscellaneous Manufacturing - 1.67%
General Dynamics Corp	32,575	$	4,615	General Electric Co		101,500		$	2,697
L-3 Communications Holdings Inc	16,176		1,834
United Technologies Corp	22,200		2,463	Oil & Gas - 13.03%
	$		8,912	Chevron Corp		12,100			1,167
Agriculture - 2.76%				Cimarex Energy Co		8,285			914
Archer-Daniels-Midland Co	54,282		2,617	ConocoPhillips		46,194			2,837
Philip Morris International Inc	23,183		1,859	Denbury Resources Inc		101,000			643
	$		4,476	EP Energy Corp (a)		45,192			575
				Exxon Mobil Corp		85,700			7,130
Airlines - 0.82%				Hess Corp		33,600			2,247
Delta Air Lines Inc	32,342		1,329	Tesoro Corp		36,044			3,043
				Valero Energy Corp		40,400			2,529
Automobile Parts & Equipment - 1.24%							$		21,085
Lear Corp	17,853		2,004	Packaging & Containers - 0.72%
				Rock-Tenn Co		19,398			1,168
Banks - 17.87%
Citigroup Inc	43,000		2,375	Pharmaceuticals - 7.05%
Goldman Sachs Group Inc/The	22,276		4,651	Cardinal Health Inc		49,887			4,173
JP Morgan Chase & Co	107,561		7,288	Johnson & Johnson		22,080			2,152
KeyCorp	250,119		3,757	Pfizer Inc		151,500			5,080
SunTrust Banks Inc	62,040		2,669				$		11,405
Wells Fargo & Co	145,582		8,188
	$		28,928	REITS - 2.85%
				Duke Realty Corp		30,000			557
Biotechnology - 1.29%				Extra Space Storage Inc		19,100			1,246
Amgen Inc	13,600		2,088	Simon Property Group Inc		7,180			1,242
				Ventas Inc		25,200			1,565
Computers - 1.91%							$		4,610
Western Digital Corp	39,509		3,098	Retail - 5.35%
				Foot Locker Inc		38,818			2,601
Cosmetics & Personal Care - 0.99%				Kohl's Corp		13,121			822
Procter & Gamble Co/The	20,500		1,604	Macy's Inc (b)		28,264			1,907
				Target Corp		29,600			2,416
				Wal-Mart Stores Inc		13,000			922
Electric - 4.81%							$		8,668
PG&E Corp	64,609		3,172
PPL Corp	59,683		1,759	Semiconductors - 2.24%
Public Service Enterprise Group Inc	69,600		2,734	Broadcom Corp		27,200			1,401
Talen Energy Corp (a)	7,454		128	Intel Corp		72,966			2,219
	$		7,793				$		3,620
Food - 2.89%				Software - 3.26%
Kroger Co/The	49,161		3,565	Electronic Arts Inc (a)		34,100			2,268
Tyson Foods Inc	26,000		1,108	Microsoft Corp		68,064			3,005
	$		4,673				$		5,273
Healthcare - Products - 1.47%				Telecommunications - 2.55%
Danaher Corp	27,800		2,379	AT&T Inc		36,000			1,279
				Cisco Systems Inc		103,550			2,843
							$		4,122
Healthcare - Services - 6.60%
Aetna Inc	31,157		3,971	TOTAL COMMON STOCKS			$		161,104
Anthem Inc	23,500		3,857	INVESTMENT COMPANIES - 0.10%		Shares Held	Value (000			's)
UnitedHealth Group Inc	23,400		2,855	Publicly Traded Investment Fund - 0.10%
	$		10,683	BlackRock Liquidity Funds FedFund Portfolio		159,590			160
Insurance - 9.94%
American International Group Inc	29,392		1,817	TOTAL INVESTMENT COMPANIES			$		160
Berkshire Hathaway Inc - Class B (a)	50,972		6,938	Total Investments			$		161,264
Everest Re Group Ltd	8,200		1,492	Other Assets in Excess of Liabilities, Net - 0.35%			$		570
Hartford Financial Services Group Inc/The	27,300		1,135	TOTAL NET ASSETS - 100.00%			$		161,834
Lincoln National Corp	33,421		1,979
MetLife Inc	29,300		1,640
Reinsurance Group of America Inc	11,369		1,079	(a)	Non-Income Producing Security
	$		16,080	(b)	Security or a portion of the security was pledged to cover margin
					requirements for futures contracts. At the end of the period, the value of
Iron & Steel - 0.63%					these securities totaled $843 or 0.52% of net assets.
Reliance Steel & Aluminum Co	16,800		1,016
Media - 2.10%
Comcast Corp - Class A	56,422		3,393

See accompanying notes.

182

	Schedule of Investments
	LargeCap Value Account
	June 30, 2015 (unaudited)
Portfolio Summary (unaudited)
Sector	Percent
Financial	30.66	%
Consumer, Non-cyclical	23.05	%
Energy	13.03	%
Industrial	7.90	%
Technology	7.41	%
Consumer, Cyclical	7.41	%
Utilities	4.81	%
Communications	4.65	%
Basic Materials	0.63	%
Exchange Traded Funds	0.10	%
Other Assets in Excess of Liabilities, Net	0.35	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

183

Schedule of Investments
MidCap Account
June 30, 2015 (unaudited)
COMMON STOCKS - 99.45%	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held  Value (000's)
Aerospace & Defense - 1.67%				Insurance (continued)
Rockwell Collins Inc	46,673	$	4,310	Brown & Brown Inc	223,089	$	7,331
TransDigm Group Inc (a)	32,223		7,240	Loews Corp	279,562		10,766
	$		11,550	Markel Corp (a)	26,280		21,042
				Progressive Corp/The	115,742		3,221
Banks - 1.08%				White Mountains Insurance Group Ltd	7,618		4,989
M&T Bank Corp	59,790		7,469	Willis Group Holdings PLC	121,819		5,713
					$		75,351
Building Materials - 1.79%				Internet - 2.64%
Armstrong World Industries Inc (a)	50,561		2,694	Liberty Ventures (a)	207,494		8,148
Martin Marietta Materials Inc	68,100		9,637	VeriSign Inc (a)	163,483		10,090
	$		12,331		$		18,238
Chemicals - 5.03%				Leisure Products & Services - 0.67%
Air Products & Chemicals Inc	101,479		13,886	Liberty TripAdvisor Holdings Inc (a)	144,325		4,650
Airgas Inc	76,061		8,046
Ashland Inc	25,376		3,093
Ecolab Inc	40,721		4,604	Lodging - 0.87%
Platform Specialty Products Corp (a),(b)	200,324		5,124	Wyndham Worldwide Corp	61,843		5,066
	$		34,753	Wynn Resorts Ltd	9,679		955
					$		6,021
Commercial Services - 7.83%
KAR Auction Services Inc	221,187		8,272	Machinery - Diversified - 1.54%
Live Nation Entertainment Inc (a)	206,918		5,688	Roper Technologies Inc	61,781		10,655
Macquarie Infrastructure Corp	107,965		8,921
McGraw Hill Financial Inc	74,549		7,489	Media - 7.67%
Moody's Corp	126,237		13,629	Discovery Communications Inc - C Shares (a)	348,813		10,841
Robert Half International Inc	52,417		2,909	FactSet Research Systems Inc	24,792		4,029
Verisk Analytics Inc (a)	98,710		7,182	Liberty Broadband Corp - A Shares (a)	43,938		2,240
	$		54,090	Liberty Broadband Corp - C Shares (a)	117,364		6,004
Distribution & Wholesale - 1.12%				Liberty Global PLC - A Shares (a)	77,050		4,166
Fastenal Co	112,217		4,733	Liberty Global PLC - C Shares (a)	230,451		11,668
HD Supply Holdings Inc (a)	85,432		3,006	Liberty Media Corp - A Shares (a)	126,559		4,561
	$		7,739	Liberty Media Corp - C Shares (a)	236,180		8,479
				Tribune Media Co	17,575		938
Diversified Financial Services - 3.95%					$		52,926
AerCap Holdings NV (a)	147,200		6,740
Charles Schwab Corp/The	148,180		4,838	Miscellaneous Manufacturing - 1.41%
FNF Group	245,644		9,086	Colfax Corp (a)	211,360		9,754
FNFV Group (a)	92,456		1,422
LPL Financial Holdings Inc	111,968		5,206	Oil & Gas - 3.09%
	$		27,292	Cheniere Energy Inc (a)	34,590		2,396
Electric - 1.62%				Cimarex Energy Co	51,678		5,701
Brookfield Infrastructure Partners LP	180,558		8,058	EOG Resources Inc	72,217		6,322
Brookfield Renewable Energy Partners LP/CA	51,998		1,543	Hess Corp	103,410		6,916
Calpine Corp (a)	88,067		1,585		$		21,335
	$		11,186	Packaging & Containers - 0.38%
Electronics - 0.88%				MeadWestvaco Corp	55,122		2,601
Sensata Technologies Holding NV (a)	114,861		6,058
				Pharmaceuticals - 5.66%
Engineering & Construction - 1.92%				Mead Johnson Nutrition Co	106,057		9,569
SBA Communications Corp (a)	115,144		13,238	Valeant Pharmaceuticals International Inc (a)	80,155		17,806
				Zoetis Inc	243,046		11,720
					$		39,095
Healthcare - Products - 2.28%
Becton Dickinson and Co	49,971		7,078	Pipelines - 0.34%
CR Bard Inc	50,595		8,637	Kinder Morgan Inc/DE	54,020		2,074
	$		15,715	Kinder Morgan Inc/DE - Warrants (a)	88,299		238
					$		2,312
Healthcare - Services - 0.82%
DaVita HealthCare Partners Inc (a)	70,916		5,636	Private Equity - 0.91%
				KKR & Co LP	102,301		2,338
				Onex Corp	71,341		3,945
Holding Companies - Diversified - 1.19%					$		6,283
Leucadia National Corp	339,089		8,233
				Real Estate - 7.22%
				Brookfield Asset Management Inc	800,879		27,975
Home Builders - 0.41%				Brookfield Property Partners LP	106,622		2,351
Lennar Corp	55,100		2,812	CBRE Group Inc (a)	198,528		7,345
				Forest City Enterprises Inc (a)	277,639		6,136
				Howard Hughes Corp/The (a)	42,056		6,037
Insurance - 10.91%
Alleghany Corp (a)	6,216		2,914		$		49,844
Aon PLC	156,823		15,632
Arch Capital Group Ltd (a)	55,897		3,743

See accompanying notes.

184

Schedule of Investments
MidCap Account
June 30, 2015 (unaudited)

COMMON STOCKS (continued)	Shares Held	Value (000			's)
REITS - 0.94%
Crown Castle International Corp	80,747		$	6,484
Retail - 15.02%
AutoZone Inc (a)	17,243			11,499
CarMax Inc (a)	150,478			9,963
Copart Inc (a)	129,915			4,609
Dollar General Corp	120,047			9,333
Liberty Interactive Corp QVC Group (a)	396,399			11,000
O'Reilly Automotive Inc (a)	85,299			19,276
Restaurant Brands International Inc	277,842			10,616
Ross Stores Inc	134,466			6,537
Signet Jewelers Ltd	67,005			8,593
TJX Cos Inc/The	185,119			12,249
		$		103,675
Semiconductors - 1.13%
Microchip Technology Inc	164,952			7,823
Software - 4.60%
Adobe Systems Inc (a)	67,547			5,472
Autodesk Inc (a)	51,287			2,568
CDK Global Inc	35,849			1,935
Fidelity National Information Services Inc	153,149			9,465
Intuit Inc	79,194			7,980
MSCI Inc	70,227			4,323
		$		31,743
Telecommunications - 1.49%
EchoStar Corp (a)	85,971			4,185
Motorola Solutions Inc	106,803			6,124
		$		10,309
Textiles - 1.37%
Mohawk Industries Inc (a)	49,586			9,466
TOTAL COMMON STOCKS		$		686,667
INVESTMENT COMPANIES - 0.14%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 0.14%
BlackRock Liquidity Funds FedFund Portfolio	965,319			965
TOTAL INVESTMENT COMPANIES		$		965
Total Investments		$		687,632
Other Assets in Excess of Liabilities, Net - 0.41%		$		2,856
TOTAL NET ASSETS - 100.00%		$		690,488

(a)	Non-Income Producing Security
(b)	Security is Illiquid. At the end of the period, the value of these securities totaled $5,124 or 0.74% of net assets.

Portfolio Summary (unaudited)
Sector	Percent
Financial	25.01	%
Consumer, Cyclical	19.46	%
Consumer, Non-cyclical	16.59	%
Communications	11.80	%
Industrial	9.59	%
Technology	5.73	%
Basic Materials	5.03	%
Energy	3.43	%
Utilities	1.62	%
Diversified	1.19	%
Exchange Traded Funds	0.14	%
Other Assets in Excess of Liabilities, Net	0.41	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

185

Schedule of Investments
Money Market Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 6.15%			Shares Held                   Value (000's)						Principal
							BONDS (continued)			Amount (000's)    Value (000's)
	Publicly Traded Investment Fund - 6.15%
	BlackRock Liquidity Funds TempFund			3,800,000	$	3,800	Other Asset Backed Securities (continued)
	Portfolio						MMAF Equipment Finance LLC 2015-A
	Deutsche Money Market Series			4,900,000		4,900	0.39%, 06/03/2016(a),(b)		$	1,729	$	1,729
	Morgan Stanley Institutional Liquidity Funds -			2,700,000		2,700				$		4,931
	Government Portfolio						TOTAL BONDS			$		21,153
	STIT - Liquid Assets Portfolio			5,300,000		5,300				Principal
				$		16,700	MUNICIPAL BONDS - 7.06%			Amount (000's)     Value (000's)
	TOTAL INVESTMENT COMPANIES			$		16,700
							California - 0.60%
				Principal			California Statewide Communities
	BONDS - 7.79	%		Amount (000's)                Value (000's)			Development Authority (credit support from
	Automobile Asset Backed Securities - 3.84%						Fannie Mae)
	AmeriCredit Automobile Receivables 2015-1						0.16%, 07/08/2015(d)		$	140	$	140
	0.30%, 01/08/2016(a)		$	183	$	183	San Francisco City & County Redevelopment
	ARI Fleet Lease Trust 2015-A						Agency (credit support from Fannie Mae)
	0.40%, 04/15/2016(b)			865		865	0.13%, 07/08/2015(d)			1,500		1,500
	CarMax Auto Owner Trust 2015-1									$		1,640
	0.24%, 03/15/2016(a)			582		582
	Chrysler Capital Auto Receivables Trust 2015-
	A						Colorado - 0.85%
	0.37%, 04/15/2016(a),(b)			1,211		1,211	City of Colorado Springs CO Utilities System
							Revenue (credit support from Bank of New York Mellon)
	Drive Auto Receivables Trust 2015-B						0.18%, 07/08/2015(d)			1,600		1,600
	0.46%, 06/15/2016(a),(b)			969		969
	GM Financial Automobile Leasing Trust
	2015-1						Colorado Housing & Finance
	0.38%, 03/21/2016(a)			550		550	Authority (credit support from Federal Home Loan Bank)
							0.12%, 07/08/2015(a),(d)			700		700
	Harley-Davidson Motorcycle Trust 2015-1
	0.25%, 02/16/2016(a)			31		31				$		2,300
	Huntington Auto Trust 2015-1						Illinois - 0.07%
	0.35%, 06/15/2016			2,000		2,000	Memorial Health System/IL (credit support
	Hyundai Auto Receivables Trust 2015-A						from JP Morgan Chase & Co)
	0.24%, 01/15/2016(a)			297		297	0.12%, 07/08/2015(d)			200		200
	Mercedes Benz Auto Lease Trust 2015-A
	0.24%, 01/15/2016(a)			575		574
	Santander Drive Auto Receivables Trust 2015-						Iowa - 0.18	%
	2						Iowa Finance Authority (credit support from
	0.45%, 05/16/2016(a)			1,135		1,135	FHLB 100%, Fannie Mae 78.25% and Ginnie
							Mae 21.75%)
	SunTrust Auto Receivables Trust 2015-1						0.14%, 07/08/2015(d)			500		500
	0.40%, 06/15/2016(a),(b)			1,700		1,700
	Volkswagen Auto Lease Trust 2015-A
	0.25%, 03/21/2016(a)			325		325
							Minnesota - 0.41%
				$		10,422	Minnesota Housing Finance Agency (credit
							support from Wells Fargo)
	Banks - 0.66	%					0.18%, 07/08/2015(d)			1,100		1,100
	Wells Fargo Bank NA
	0.46%, 05/20/2016(a)			1,800		1,800
							New Mexico - 0.42%
							Village of Los Lunas NM (credit support from
	Diversified Financial Services - 0.74%						Wells Fargo)
	MetLife Inc						0.23%, 07/08/2015(d)			1,150		1,150
	0.34%, 08/17/2015(a),(c)			2,000		2,000
							New York - 3.22%
	Insurance - 0.74%
	New York Life Global						Housing Development Corp/NY (credit
	0.27%, 07/24/2015(a),(c)			2,000		2,000	support from Fannie Mae)
							0.15%, 07/08/2015(d)			2,150		2,150
							Housing Development Corp/NY (credit
	Other Asset Backed Securities - 1.81%						support from Freddie Mac)
	CIT Equipment Collateral 2014-VT1						0.13%, 07/08/2015(d)			1,320		1,320
	0.30%, 12/21/2015(a),(b)			538		538	New York State Housing Finance
	GE Equipment Transportation LLC Series						Agency (credit support from Fannie Mae)
	2015-1						0.10%, 07/08/2015(d)			900		900
	0.25%, 03/23/2016(a)			785		785	0.12%, 07/08/2015(d)			1,560		1,560
	GreatAmerica Leasing Receivables						0.19%, 07/08/2015(d)			1,500		1,500
	0.40%, 03/21/2016(a),(b)			392		392	New York State Housing Finance
	John Deere Owner Trust 2015						Agency (credit support from Freddie Mac)
	0.27%, 04/01/2016(a)			903		903	0.10%, 07/08/2015(d)			1,300		1,300
	Kubota Credit Owner Trust 2015-1									$		8,730
	0.27%, 02/16/2016(a),(b)			502		502
	Macquarie Equipment Funding Trust 2014-A						North Carolina - 0.31%
	0.26%, 09/21/2015(b)			82		82	City of Raleigh NC (credit support from
							Wells Fargo)
							0.18%, 07/08/2015(d)			840		840

See accompanying notes.

186

Schedule of Investments
Money Market Account
June 30, 2015 (unaudited)
				Principal					Principal
	MUNICIPAL BONDS (continued)			Amount (000's)                 Value (000's)			COMMERCIAL PAPER (continued)		Amount (000's)         Value (000's)
	Pennsylvania - 0.25%						Banks (continued)
	Luzerne County Industrial Development						Societe Generale SA
	Authority (credit support from Wells Fargo)						0.22%, 08/04/2015(b),(e)	$	2,000	$	1,999
	0.23%, 07/08/2015(d)		$	670	$	670	Standard Chartered Bank/New York
							0.23%, 08/10/2015(b)		1,900		1,899
							0.24%, 07/15/2015(b)		1,800		1,800
	Texas - 0.59	%					0.26%, 09/25/2015(b)		2,000		1,999
	South Central Texas Industrial Development						Sumitomo Mitsui Banking Corp
	Corp (credit support from JP Morgan Chase &						0.12%, 07/02/2015(b),(e)		2,000		2,000
	Co)						0.24%, 07/09/2015(b),(e)		2,300		2,300
	0.10%, 07/08/2015(d)			1,600		1,600
							0.27%, 09/24/2015(b),(e)		2,000		1,999
									$		71,936
	Washington - 0.16%
	Washington State Housing Finance						Beverages - 1.22%
	Commission (credit support from Bank of						Brown-Forman Corp
							0.16%, 07/29/2015(b)		2,100		2,100
	America)						0.18%, 07/17/2015(b)		1,200		1,200
	0.14%, 07/08/2015(d)			440		440
									$		3,300
	TOTAL MUNICIPAL BONDS			$		19,170	Commercial Services - 2.91%
				Principal			Catholic Health Initiatives
	COMMERCIAL PAPER - 74.40%			Amount (000's)                  Value (000's)			0.19%, 08/20/2015		2,000		2,000
							0.20%, 08/26/2015		2,000		1,999
	Automobile Manufacturers - 1.40%
	BMW US Capital LLC (credit support from						0.22%, 09/17/2015		1,900		1,899
	BMW AG)						Salvation Army/United States
	0.11%, 07/01/2015(b),(d)		$	2,100	$	2,100	0.18%, 08/27/2015		2,000		1,999
	0.11%, 07/06/2015(b),(d)			1,700		1,700			$		7,897
				$		3,800	Computers - 0.77%
							EMC Corp/MA
	Banks - 26.49	%					0.15%, 08/06/2015(b)		2,100		2,100
	Bank of Tokyo-Mitsubishi UFJ Ltd/New York
	NY
	0.16%, 07/01/2015			1,700		1,700	Diversified Financial Services - 22.97%
	0.19%, 07/13/2015			1,500		1,500	American Express Credit Corp
	0.20%, 07/28/2015			1,400		1,400	0.20%, 08/03/2015		2,000		1,999
	BNP Paribas/New York NY						0.34%, 09/03/2015		1,800		1,799
	0.20%, 07/23/2015			1,600		1,600	Anglesea Funding LLC
	0.24%, 08/18/2015			2,200		2,199	0.18%, 07/01/2015(b)		2,000		2,000
	CAFCO LLC						AXA Financial Inc (credit support from AXA
	0.17%, 08/25/2015(b)			2,000		1,999	SA)
	Credit Suisse/New York NY						0.24%, 08/03/2015(b),(d)		1,300		1,300
	0.22%, 07/17/2015			2,000		2,000	Collateralized Commercial Paper Co LLC
	0.23%, 07/31/2015			2,000		1,999	0.25%, 09/24/2015		1,445		1,444
	0.24%, 07/02/2015			2,000		2,000	Collateralized Commercial Paper II Co LLC
	DBS Bank Ltd						0.17%, 07/17/2015(b)		2,000		2,000
	0.20%, 08/21/2015(b),(e)			2,200		2,199	0.20%, 07/06/2015(b)		1,000		1,000
	Manhattan Asset Funding Co LLC						0.25%, 09/02/2015(b)		2,100		2,099
	0.18%, 07/16/2015(b)			2,000		2,000	Dealers Capital Access Trust Inc
	0.18%, 07/23/2015(b)			2,000		2,000	0.25%, 07/15/2015		2,200		2,200
	0.18%, 07/30/2015(b)			2,000		2,000	0.25%, 07/20/2015		2,000		2,000
	Mitsubishi UFJ Trust & Banking Corp/NY						0.27%, 07/10/2015		2,100		2,100
	0.26%, 09/24/2015(b)			2,000		1,999	Fairway Finance LLC
	Mizuho Bank Ltd/NY						0.24%, 10/05/2015(b)		2,200		2,198
	0.27%, 09/21/2015(b)			2,000		1,999	Gotham Funding Corp
	0.28%, 09/23/2015(b)			2,000		1,998	0.15%, 07/14/2015(b)		1,500		1,500
	MUFG Union Bank NA						0.16%, 07/07/2015(b)		2,000		2,000
	0.05%, 07/01/2015			5,000		5,000	0.18%, 08/03/2015(b)		2,000		2,000
	0.15%, 07/28/2015			1,500		1,500	0.18%, 08/26/2015(b)		1,135		1,135
	Nordea Bank AB						ING US Funding LLC (credit support from
	0.17%, 07/06/2015(b),(e)			2,000		2,000	ING Bank)
	0.18%, 07/01/2015(b),(e)			2,100		2,100	0.26%, 08/06/2015(d)		2,000		1,999
	Oversea-Chinese Banking Corp Ltd						0.32%, 10/09/2015(d)		2,100		2,098
	0.18%, 08/05/2015(e)			1,750		1,750	0.32%, 10/22/2015(d)		1,000		999
	0.19%, 07/08/2015(e)			2,300		2,300	Intercontinental Exchange Inc
	0.20%, 08/03/2015(e)			1,650		1,650	0.17%, 07/13/2015(b)		2,000		2,000
	Sheffield Receivables Co LLC						0.18%, 07/29/2015(b)		2,000		2,000
	0.19%, 07/15/2015(b)			2,000		2,000	0.18%, 07/31/2015(b)		2,000		2,000
	0.19%, 07/21/2015(b)			2,000		2,000	JP Morgan Securities LLC
	0.21%, 08/04/2015(b)			2,000		1,999	0.18%, 07/22/2015		2,200		2,200
	Skandinaviska EnskildaBanken AB						0.30%, 08/19/2015		2,100		2,099
	0.14%, 07/08/2015(b),(e)			1,250		1,250	Liberty Street Funding LLC
	0.15%, 07/16/2015(b),(e)			1,800		1,800	0.18%, 07/24/2015(b)		2,200		2,200
	0.26%, 08/07/2015(b),(e)			2,000		1,999	0.19%, 08/28/2015(b)		2,000		1,999

See accompanying notes.

187

Schedule of Investments
Money Market Account
June 30, 2015 (unaudited)
			Principal						Principal
	COMMERCIAL PAPER (continued)		Amount (000's)           Value (000's)			COMMERCIAL PAPER (continued)		Amount (000's)		Value (000			's)
	Diversified Financial Services (continued)					Supranational Bank - 0.63%
	Nieuw Amsterdam Receivables Corp					Corp Andina de Fomento
	0.14%, 07/07/2015(b)	$	1,800	$	1,800		0.21%, 07/27/2015(b)	$	1,700		$	1,700
	0.18%, 08/18/2015(b)		2,000		1,999
	0.19%, 08/11/2015(b)		2,100		2,099	TOTAL COMMERCIAL PAPER				$		201,995
	Regency Markets No. 1 LLC
	0.17%, 07/16/2015(b)		1,500		1,500				Principal
						CERTIFICATE OF DEPOSIT - 2.58%		Amount (000's)		Value (000			's)
	0.17%, 07/20/2015(b)		2,000		2,000
	0.17%, 07/27/2015(b)		1,500		1,500	Banks - 2.58%
	0.17%, 07/29/2015(b)		1,500		1,500	Bank of America NA
	Thunder Bay Funding LLC						0.21%, 07/14/2015		2,100			2,100
	0.21%, 07/16/2015(b)		1,600		1,600		0.22%, 08/17/2015		2,200			2,200
			$		62,366		0.23%, 09/18/2015		1,300			1,300
						Bank of Nova Scotia/Houston
	Electric - 5.16%						0.44%, 05/11/2016(a),(e)		1,400			1,400
	GDF Suez									$		7,000
	0.17%, 07/01/2015(b)		2,000		2,000	TOTAL CERTIFICATE OF DEPOSIT				$		7,000
	0.17%, 07/22/2015(b)		2,000		2,000
	0.18%, 08/12/2015(b)		2,200		2,199				Maturity
						REPURCHASE AGREEMENTS - 1.85%		Amount (000's)		Value (000			's)
	Oglethorpe Power Corp
	0.15%, 07/10/2015(b)		1,900		1,900	Banks - 1.85%
	0.18%, 07/14/2015(b)		2,000		2,000	Merrill Lynch Repurchase Agreement; 0.07% $			5,040	$		5,040
	Southern Co Funding Corp						dated 06/30/2015 maturing 07/01/2015
	0.22%, 07/09/2015(b)		1,900		1,900		(collateralized by US Government
	0.25%, 07/28/2015(b)		2,000		2,000		Security; $5,140,800; 1.38%; dated
			$		13,999		01/31/2020)
	Healthcare - Products - 0.77%					TOTAL REPURCHASE AGREEMENTS				$		5,040
	Danaher Corp					Total Investments				$		271,058
	0.18%, 07/10/2015(b)		2,100		2,100
						Other Assets in Excess of Liabilities, Net - 0.17%				$		448
						TOTAL NET ASSETS - 100.00%				$		271,506
	Insurance - 4.16%
	Prudential Funding LLC (credit support from
	Prudential Financial Inc)					(a)	Variable Rate. Rate shown is in effect at June 30, 2015.
	0.05%, 07/01/2015(d)		6,000		6,000	(b)	Security exempt from registration under Rule 144A of the Securities Act of
	Prudential PLC						1933. These securities may be resold in transactions exempt from
	0.20%, 07/07/2015(b)		1,300		1,300		registration, normally to qualified institutional buyers. At the end of the
	0.20%, 08/18/2015(b)		1,800		1,799		period, the value of these securities totaled $143,551 or 52.87% of net
	0.23%, 07/20/2015(b)		2,200		2,200		assets.
			$		11,299	(c)	Security is Illiquid. At the end of the period, the value of these securities
							totaled $4,000 or 1.47% of net assets.
	Investment Companies - 1.88%					(d)	Credit support indicates investments that benefit from credit enhancement
	Alpine Securitization Corp						or liquidity support provided by a third party bank, institution, or
	0.20%, 07/13/2015(b)		1,400		1,400		government
							agency.
	0.23%, 07/31/2015(b)		1,700		1,700	(e)
							Security issued by foreign bank and denominated in USD.
	0.23%, 08/10/2015(b)		2,000		1,999
			$		5,099
	Oil & Gas - 1.84%						Portfolio Summary (unaudited)
	Exxon Mobil Corp					Sector						Percent
	0.04%, 07/01/2015		5,000		5,000	Financial						64.04	%
						Insured						7.06	%
	Pharmaceuticals - 0.74%					Exchange Traded Funds						6.15	%
	Novartis Finance Corp (credit support from					Asset Backed Securities						5.65	%
	Novartis AG)					Consumer, Non-cyclical						5.63	%
	0.08%, 07/08/2015(b),(d)		2,000		2,000	Utilities						5.16	%
						Energy						2.61	%
						Consumer, Cyclical						2.14	%
	Pipelines - 0.77%					Technology						0.77	%
	Questar Corp					Government						0.62	%
	0.12%, 07/01/2015(b)		2,100		2,100	Other Assets in Excess of Liabilities, Net						0.17	%
						TOTAL NET ASSETS						100.00	%
	REITS - 1.95%
	Simon Property Group LP
	0.15%, 07/23/2015(b)		1,200		1,200
	0.15%, 07/27/2015(b)		2,100		2,100
	0.17%, 08/05/2015(b)		2,000		1,999
			$		5,299
	Retail - 0.74%
	Wal-Mart Stores Inc
	0.05%, 07/06/2015(b)		2,000		2,000

See accompanying notes.

188

Schedule of Investments
Principal Capital Appreciation Account
June 30, 2015 (unaudited)
COMMON STOCKS - 97.91%	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held  Value (000's)
Aerospace & Defense - 2.98%				Distribution & Wholesale - 0.46%
Boeing Co/The	18,783	$	2,605	Pool Corp	11,490	$	806
Northrop Grumman Corp	10,201		1,618
Teledyne Technologies Inc (a)	9,512		1,004
				Diversified Financial Services - 3.60%
	$		5,227	Ameriprise Financial Inc	6,517		814
Airlines - 0.32%				Charles Schwab Corp/The	60,342		1,970
Alaska Air Group Inc	8,831		569	FNF Group	28,506		1,055
				Franklin Resources Inc	34,620		1,697
				T Rowe Price Group Inc	9,894		769
Apparel - 1.87%					$		6,305
Nike Inc	28,009		3,026
Ralph Lauren Corp	1,884		249	Electric - 1.06%
	$		3,275	Duke Energy Corp	16,014		1,131
				Xcel Energy Inc	22,554		726
Automobile Manufacturers - 0.98%					$		1,857
PACCAR Inc	26,949		1,720
				Electronics - 3.34%
				Corning Inc	33,743		666
Automobile Parts & Equipment - 1.56%				FEI Co	6,391		530
Autoliv Inc	9,640		1,125	FLIR Systems Inc	9,738		300
Johnson Controls Inc	32,436		1,607	Thermo Fisher Scientific Inc	14,163		1,838
	$		2,732	Trimble Navigation Ltd (a)	23,473		550
				Waters Corp (a)	15,375		1,974
Banks - 7.41%
East West Bancorp Inc	21,586		968		$		5,858
Goldman Sachs Group Inc/The	4,392		917	Engineering & Construction - 0.06%
JP Morgan Chase & Co	30,020		2,034	Granite ConstructionInc	2,980		106
PNC Financial Services Group Inc/The	23,043		2,204
State Street Corp	7,118		548
SVB Financial Group (a)	7,400		1,065	Environmental Control - 0.73%
US Bancorp/MN	37,661		1,635	Stericycle Inc (a)	1,969		264
Wells Fargo & Co	64,249		3,613	Waste Connections Inc	21,718		1,023
	$		12,984		$		1,287
Beverages - 1.74%				Food - 2.70%
Ambev SA ADR	68,509		418	Dairy Farm International Holdings Ltd ADR	7,529		326
Brown-Forman Corp	7,889		790	General Mills Inc	18,611		1,037
Coca-Cola Co/The	30,780		1,208	Kroger Co/The	20,471		1,484
PepsiCo Inc	6,847		639	McCormick & Co Inc/MD	13,277		1,075
	$		3,055	Safeway, Inc. - CVR - Casa Ley (a),(b)	825		—
				Safeway, Inc. - CVR - Property Development	825		—
Biotechnology - 0.79%				Centers (a),(b),(c)
Gilead Sciences Inc	11,864		1,389	Whole Foods Market Inc	20,559		811
					$		4,733
Building Materials - 0.52%				Gas - 1.46%
Apogee Enterprises Inc	17,195		905	Sempra Energy	25,935		2,566
Chemicals - 2.39%				Healthcare - Products - 2.97%
EI du Pont de Nemours & Co	19,711		1,260	Becton Dickinsonand Co	10,266		1,454
FMC Corp	13,049		686	Bio-Techne Corp	9,133		899
International Flavors & Fragrances Inc	10,226		1,118	Edwards Lifesciences Corp (a)	7,856		1,119
PPG Industries Inc	9,860		1,131	Halyard Health Inc (a)	13,997		567
	$		4,195	Medtronic PLC	7,590		562
				Varian Medical Systems Inc (a)	7,252		612
Commercial Services - 0.75%
Robert Half International Inc	11,098		616		$		5,213
TrueBlue Inc (a)	23,142		692
				Healthcare - Services - 1.64%
	$		1,308	DaVita HealthCare Partners Inc (a)	17,028		1,353
Computers - 5.41%				Universal Health Services Inc	10,655		1,514
Apple Inc	48,065		6,029		$		2,867
EMC Corp/MA	61,022		1,610	Housewares- 0.33%
International Business Machines Corp	8,931		1,453	Tupperware BrandsCorp	8,861		572
Teradata Corp (a)	10,473		387
	$		9,479
				Insurance - 2.15%
Consumer Products - 0.86%				ACE Ltd	11,012		1,120
Kimberly-Clark Corp	6,162		653	Chubb Corp/The	9,658		919
WD-40 Co	9,845		858	MetLife Inc	12,335		690
	$		1,511	XL Group PLC	28,015		1,042
Cosmetics & Personal Care - 0.66%					$		3,771
Procter & Gamble Co/The	14,694		1,150	Internet - 3.01%
				Amazon.com Inc (a)	4,080		1,771
				eBay Inc (a)	9,376		565
				Google Inc - A Shares (a)	3,456		1,866

See accompanying notes.

189

Schedule of Investments
Principal Capital Appreciation Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)		Shares Held	Value (000			's)
Internet (continued)				Retail (continued)
Google Inc - C Shares (a)	1,556	$	810	Costco Wholesale Corp		21,187		$	2,861
LinkedIn Corp (a)	1,251		259	CVS Health Corp		21,080			2,211
	$		5,271	Home Depot Inc/The		11,744			1,305
				Nordstrom Inc		24,706			1,841
Iron & Steel - 0.71%				Starbucks Corp		50,882			2,728
Reliance Steel & Aluminum Co	15,822		957				$		11,951
Schnitzer Steel Industries Inc	16,586		290
	$		1,247	Savings & Loans - 0.40%
				Washington Federal Inc		29,750			695
Leisure Products & Services - 1.06%
Carnival Corp	18,204		899
Harley-Davidson Inc	17,162		967	Semiconductors - 2.94%
	$		1,866	Applied Materials Inc		36,926			710
				Avago Technologies Ltd		3,670			488
Machinery - Construction & Mining - 0.15%				Intel Corp		32,638			993
Caterpillar Inc	3,097		263	Lam Research Corp		12,433			1,011
				Microchip Technology Inc		25,001			1,185
Machinery - Diversified - 1.29%				Qualcomm Inc		12,308			771
Deere & Co	21,573		2,093				$		5,158
Tennant Co	2,691		176	Software - 6.48%
	$		2,269	Adobe Systems Inc (a)		32,789			2,656
				Autodesk Inc (a)		13,939			698
Media - 2.36%
Viacom Inc	18,813		1,216	Fair Isaac Corp		15,329			1,392
Walt Disney Co/The	25,519		2,913	Microsoft Corp		67,207			2,967
	$		4,129	Omnicell Inc (a)		16,077			606
				Oracle Corp		54,340			2,190
Metal Fabrication & Hardware - 0.50%				Tyler Technologies Inc (a)		6,577			851
Precision Castparts Corp	4,423		884				$		11,360
				Telecommunications - 2.42%
Miscellaneous Manufacturing - 2.00%				China Mobile Ltd ADR		1,358			87
AptarGroup Inc	16,570		1,057	Cisco Systems Inc		31,747			872
Crane Co	10,394		610	Polycom Inc (a)		27,677			316
Donaldson Co Inc	8,372		300	Verizon Communications Inc		63,483			2,959
General Electric Co	58,079		1,543				$		4,234
	$		3,510
				Toys, Games & Hobbies - 0.50%
Oil & Gas - 6.04%				Hasbro Inc		11,655			872
Apache Corp	11,632		670
Chevron Corp	24,153		2,330
Devon Energy Corp	25,184		1,498	Transportation - 1.43%
Energen Corp	13,565		927	Expeditors International of Washington Inc		28,065			1,294
Exxon Mobil Corp	32,986		2,745	Union Pacific Corp		12,707			1,212
HollyFrontier Corp	17,172		733				$		2,506
Occidental Petroleum Corp	21,526		1,674		Trucking & Leasing - 0.12%
	$		10,577	Greenbrier Cos Inc/The		4,494			211
Oil & Gas Services - 0.86%
Natural Gas Services Group Inc (a)	17,081		390
				Water - 0.28%
Schlumberger Ltd	12,949		1,116	California Water Service Group		21,159			483
	$		1,506
Pharmaceuticals - 6.87%				TOTAL COMMON STOCKS			$		171,597
Abbott Laboratories	26,926		1,321	INVESTMENT COMPANIES - 2.22%		Shares Held	Value (000			's)
AbbVie Inc	15,928		1,070
Allergan PLC (a)	5,570		1,690	Publicly Traded Investment Fund - 2.22%
Bristol-Myers Squibb Co	19,501		1,298	BlackRock Liquidity Funds FedFund Portfolio		3,891,704			3,892
Johnson & Johnson	20,723		2,020	TOTAL INVESTMENT COMPANIES			$		3,892
McKesson Corp	12,736		2,863
Perrigo Co PLC	2,510		464	Total Investments			$		175,489
Teva Pharmaceutical Industries Ltd ADR	8,646		511	Liabilities in Excess of Other Assets, Net - (0.13)%			$		(234	)
VCA Inc (a)	14,642		797	TOTAL NET ASSETS - 100.00%			$		175,255
	$		12,034
REITS - 2.93%				(a)	Non-Income Producing Security
Alexandria Real Estate Equities Inc	11,353		993	(b)	Fair value of these investments is determined in good faith by the Manager
Essex Property Trust Inc	3,172		674		under procedures established and periodically reviewed by the Board of
HCP Inc	10,662		389		Directors. At the end of the period, the fair value of these securities totaled
Plum Creek Timber Co Inc	34,283		1,391		$0 or 0.00% of net assets.
Sabra Health Care REIT Inc	17,092		440	(c)	Security is Illiquid. At the end of the period, the value of these securities
Ventas Inc	15,697		974		totaled $0 or 0.00% of net assets.
Weyerhaeuser Co	8,573		270
	$		5,131
Retail - 6.82%
Copart Inc (a)	28,329		1,005

See accompanying notes.

190

	Schedule of Investments
	Principal Capital Appreciation Account
	June 30, 2015 (unaudited)
Portfolio Summary (unaudited)
Sector	Percent
Consumer, Non-cyclical	18.98	%
Financial	16.49	%
Technology	14.83	%
Consumer, Cyclical	13.90	%
Industrial	13.12	%
Communications	7.79	%
Energy	6.90	%
Basic Materials	3.10	%
Utilities	2.80	%
Exchange Traded Funds	2.22	%
Liabilities in Excess of Other Assets, Net	(0.13	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

191

Schedule of Investments
Principal LifeTime 2010 Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 68.29%
Blue Chip Fund (a)		80,491	$	1,273
Bond Market Index Fund (a)		311,851		3,421
Diversified International Fund (a)		185,411		2,227
Diversified Real Asset Fund (a)		176,422		2,103
Equity Income Fund (a)		57,409		1,512
Global Diversified Income Fund (a)		274,546		3,811
Global Multi-Strategy Fund (a)		143,341		1,594
Global Opportunities Fund (a)		71,474		858
Inflation Protection Fund (a)		407,585		3,452
International Emerging Markets Fund (a)		19,252		461
LargeCap Growth Fund I (a)		106,008		1,390
LargeCap S&P 500 Index Fund (a)		131,646		1,922
LargeCap Value Fund III (a)		107,795		1,719
MidCap Fund (a)		81,072		1,864
Origin Emerging Markets Fund (a),(b)		25,321		255
Overseas Fund (a)		199,952		2,147
SmallCap Growth Fund I (a)		46,435		610
SmallCap Value Fund II (a)		45,479		616
		$		31,235
Principal Variable Contracts Funds, Inc. Class 1 - 31.73%
Bond & Mortgage Securities Account (a)		836,011		9,597
Short-Term Income Account (a)		1,884,203		4,917
		$		14,514
TOTAL INVESTMENT COMPANIES		$		45,749
Total Investments		$		45,749
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(6	)
TOTAL NET ASSETS - 100.00%		$		45,743

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	46.76	%
Domestic Equity Funds	23.83	%
Specialty Funds	16.41	%
International Equity Funds	13.02	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

192

Schedule of Investments
Principal LifeTime 2010 Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015   June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—		84,620	$	1,333	4,129		$	67	80,491	$	1,266
Bond & Mortgage Securities Account	922,569		10,844		51,503		596	138,061			1,599	836,011		9,853
Bond Market Index Fund	326,944		3,639		17,975		199	33,068			366	311,851		3,472
Diversified International Fund	193,748		2,685		9,558		115	17,895			212	185,411		2,593
Diversified Real Asset Fund	135,027		1,400		59,326		717	17,931			218	176,422		1,905
Equity Income Fund	90,261		1,711		4,819		130	37,671			1,005	57,409		1,088
Global Diversified Income Fund	156,226		1,682		142,437		2,014	24,117			340	274,546		3,358
Global Multi-Strategy Fund	114,677		1,188		43,820		491	15,156			169	143,341		1,512
Global Opportunities Fund	74,398		801		3,357		41	6,281			75	71,474		767
High Yield Fund I	133,933		1,320		4,510		46	138,443			1,428	—		—
Inflation Protection Fund	281,441		2,265		166,310		1,426	40,166			344	407,585		3,350
International Emerging Markets Fund	31,149		900		1,327		32	13,224			308	19,252		552
LargeCap Growth Fund I	214,256		2,490		9,241		121	117,489			1,520	106,008		1,225
LargeCap S&P 500 Index Fund	125,115		1,455		21,461		316	14,930			218	131,646		1,565
LargeCap Value Fund	84,232		1,058		2,590		33	86,822			1,101	—		—
LargeCap Value Fund III	112,586		1,528		5,574		89	10,365			164	107,795		1,457
MidCap Fund	97,720		1,474		4,483		104	21,131			493	81,072		1,194
Origin Emerging Markets Fund	—		—		27,442		261	2,121			21	25,321		240
Overseas Fund	209,210		1,954		10,557		115	19,815			212	199,952		1,857
Short-Term Income Account	1,988,097		5,053		121,499		316	225,393			587	1,884,203		4,782
SmallCap Growth Fund I	56,477		484		2,360		30	12,402			155	46,435		368
SmallCap Value Fund II	54,911		453		2,229		30	11,661			155	45,479		351
		$	44,384		$		8,555			$	10,757	$		42,755
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$			—	$			—			$			—
Bond & Mortgage Securities Account				—				12						—
Bond Market Index Fund				—				—						—
Diversified International Fund				—				5						—
Diversified Real Asset Fund				—				6						—
Equity Income Fund				17				252						—
Global Diversified Income Fund				73				2						—
Global Multi-Strategy Fund				—				2						—
Global Opportunities Fund				—				—						—
High Yield Fund I				11				62						—
Inflation Protection Fund				—				3						—
International Emerging Markets Fund				—				(72	)					—
LargeCap Growth Fund I				—				134						—
LargeCap S&P 500 Index Fund				—				12						—
LargeCap Value Fund				—				10						—
LargeCap Value Fund III				—				4						—
MidCap Fund				—				109						—
Origin Emerging Markets Fund				—				—						—
Overseas Fund				—				—						—
Short-Term Income Account				—				—						—
SmallCap Growth Fund I				—				9						—
SmallCap Value Fund II				—				23						—
	$			101	$			573			$			—
Amounts in thousands except shares

See accompanying notes.

193

Schedule of Investments
Principal LifeTime 2020 Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.01%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 79.24%
Blue Chip Fund (a)		555,195	$	8,783
Bond Market Index Fund (a)		1,127,506		12,369
Diversified International Fund (a)		965,605		11,597
Diversified Real Asset Fund (a)		723,513		8,624
Equity Income Fund (a)		330,240		8,695
Global Diversified Income Fund (a)		926,179		12,855
Global Multi-Strategy Fund (a)		588,168		6,540
Global Opportunities Fund (a)		904,754		10,857
Global Real Estate Securities Fund (a)		553,848		4,951
Inflation Protection Fund (a)		923,816		7,825
International Emerging Markets Fund (a)		126,240		3,021
LargeCap Growth Fund I (a)		753,670		9,881
LargeCap S&P 500 Index Fund (a)		1,022,428		14,928
LargeCap Value Fund III (a)		597,240		9,526
MidCap Fund (a)		260,167		5,981
MidCap Growth Fund III (a)		287,484		3,114
MidCap Value Fund III (a)		149,387		2,965
Origin Emerging Markets Fund (a),(b)		171,411		1,726
Overseas Fund (a)		1,096,035		11,771
SmallCap Growth Fund I (a)		254,840		3,346
SmallCap Value Fund II (a)		242,930		3,292
		$		162,647
Principal Variable Contracts Funds, Inc. Class 1 - 20.77%
Bond & Mortgage Securities Account (a)		3,092,543		35,502
Short-Term Income Account (a)		2,734,638		7,138
		$		42,640
TOTAL INVESTMENT COMPANIES		$		205,287
Total Investments		$		205,287
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(11	)
TOTAL NET ASSETS - 100.00%		$		205,276

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	34.35	%
Fixed Income Funds	30.61	%
International Equity Funds	21.40	%
Specialty Funds	13.65	%
Liabilities in Excess of Other Assets, Net	(0.01	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

194

Schedule of Investments
Principal LifeTime 2020 Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015   June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—		585,568	$	9,222	30,373		$	488	555,195	$	8,740
Bond & Mortgage Securities Account	3,249,647		38,267		125,900		1,455	283,004			3,280	3,092,543		36,459
Bond Market Index Fund	1,181,836		13,154		43,552		481	97,882			1,084	1,127,506		12,552
Diversified International Fund	1,013,491		15,240		38,492		461	86,378			1,039	965,605		14,716
Diversified Real Asset Fund	466,139		4,824		316,971		3,823	59,597			724	723,513		7,942
Equity Income Fund	265,899		5,036		90,508		2,415	26,167			705	330,240		6,779
Global Diversified Income Fund	291,618		3,962		701,910		9,997	67,349			952	926,179		13,007
Global Multi-Strategy Fund	412,606		4,247		227,227		2,549	51,665			579	588,168		6,226
Global Opportunities Fund	942,281		10,162		29,966		361	67,493			814	904,754		9,725
Global Real Estate Securities Fund	834,408		6,222		28,919		272	309,479			2,958	553,848		4,079
High Yield Fund I	352,183		3,221		5,457		56	357,640			3,690	—		—
Inflation Protection Fund	702,878		6,122		301,677		2,599	80,739			691	923,816		8,030
International Emerging Markets Fund	208,056		5,906		6,838		163	88,654			2,071	126,240		3,507
LargeCap Growth Fund I	1,495,119		17,374		36,593		474	778,042			10,079	753,670		8,717
LargeCap S&P 500 Index Fund	915,820		10,643		192,670		2,856	86,062			1,267	1,022,428		12,297
LargeCap Value Fund	767,469		9,641		10,327		130	777,796			9,945	—		—
LargeCap Value Fund III	1,009,127		13,499		26,799		427	438,686			6,969	597,240		7,801
MidCap Fund	164,747		2,475		114,327		2,697	18,907			440	260,167		4,742
MidCap Growth Fund III	414,328		3,997		11,020		119	137,864			1,519	287,484		2,621
MidCap Value Fund III	219,137		3,521		6,065		120	75,815			1,522	149,387		2,353
Origin Emerging Markets Fund	—		—		186,602		1,771	15,191			156	171,411		1,622
Overseas Fund	1,149,221		10,812		42,741		461	95,927			1,039	1,096,035		10,245
Short-Term Income Account	2,891,240		7,470		125,146		326	281,748			734	2,734,638		7,062
SmallCap Growth Fund I	266,603		2,256		9,263		117	21,026			264	254,840		2,121
SmallCap Value Fund II	254,181		2,095		8,899		119	20,150			268	242,930		1,954
		$	200,146		$		43,471			$	53,277	$		193,297
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$			—	$			6			$			—
Bond & Mortgage Securities Account				—				17						—
Bond Market Index Fund				—				1						—
Diversified International Fund				—				54						—
Diversified Real Asset Fund				—				19						—
Equity Income Fund				100				33						—
Global Diversified Income Fund				201				—						—
Global Multi-Strategy Fund				—				9						—
Global Opportunities Fund				—				16						—
Global Real Estate Securities Fund				68				543						—
High Yield Fund I				30				413						—
Inflation Protection Fund				—				—						—
International Emerging Markets Fund				—				(491	)					—
LargeCap Growth Fund I				—				948						—
LargeCap S&P 500 Index Fund				—				65						—
LargeCap Value Fund				—				174						—
LargeCap Value Fund III				—				844						—
MidCap Fund				—				10						—
MidCap Growth Fund III				—				24						—
MidCap Value Fund III				—				234						—
Origin Emerging Markets Fund				—				7						—
Overseas Fund				—				11						—
Short-Term Income Account				—				—						—
SmallCap Growth Fund I				—				12						—
SmallCap Value Fund II				—				8						—
	$			399	$			2,957			$			—
Amounts in thousands except shares

See accompanying notes.

195

Schedule of Investments
Principal LifeTime 2030 Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.01%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 87.54%
Blue Chip Fund (a)		325,826	$	5,155
Bond Market Index Fund (a)		456,394		5,007
Diversified International Fund (a)		735,439		8,833
Diversified Real Asset Fund (a)		393,091		4,686
Equity Income Fund (a)		149,483		3,936
Global Diversified Income Fund (a)		308,652		4,284
Global Multi-Strategy Fund (a)		311,466		3,463
Global Opportunities Fund (a)		484,653		5,816
Global Real Estate Securities Fund (a)		440,555		3,938
Inflation Protection Fund (a)		312,675		2,648
International Emerging Markets Fund (a)		92,721		2,219
LargeCap Growth Fund I (a)		655,674		8,596
LargeCap S&P 500 Index Fund (a)		756,392		11,043
LargeCap Value Fund (a)		353,872		4,498
LargeCap Value Fund III (a)		333,651		5,322
MidCap Fund (a)		41,828		962
MidCap Growth Fund III (a)		349,033		3,780
MidCap Value Fund III (a)		178,034		3,534
Origin Emerging Markets Fund (a),(b)		212,664		2,141
Overseas Fund (a)		807,452		8,672
SmallCap Growth Fund I (a)		206,729		2,714
SmallCap Value Fund II (a)		197,399		2,675
		$		103,922
Principal Variable Contracts Funds, Inc. Class 1 - 12.47%
Bond & Mortgage Securities Account (a)		1,289,904		14,808
TOTAL INVESTMENT COMPANIES		$		118,730
Total Investments		$		118,730
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(9	)
TOTAL NET ASSETS - 100.00%		$		118,721

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	43.98	%
International Equity Funds	26.63	%
Fixed Income Funds	18.92	%
Specialty Funds	10.48	%
Liabilities in Excess of Other Assets, Net	(0.01	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

196

Schedule of Investments
Principal LifeTime 2030 Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015  June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—		338,756	$	5,335	12,930		$	207	325,826	$	5,130
Bond & Mortgage Securities Account	1,300,379		14,829		82,670		957	93,145			1,079	1,289,904		14,707
Bond Market Index Fund	460,081		5,121		28,856		320	32,543			361	456,394		5,080
Diversified International Fund	681,036		8,288		104,109		1,261	49,706			595	735,439		8,953
Diversified Real Asset Fund	190,063		2,052		226,666		2,734	23,638			285	393,091		4,501
Equity Income Fund	—		—		155,902		4,158	6,419			174	149,483		3,985
Global Diversified Income Fund	—		—		322,416		4,587	13,764			194	308,652		4,392
Global Multi-Strategy Fund	249,656		2,595		83,583		936	21,773			242	311,466		3,289
Global Opportunities Fund	488,258		5,300		30,414		363	34,019			409	484,653		5,254
Global Real Estate Securities Fund	646,756		4,904		37,659		358	243,860			2,331	440,555		3,285
High Yield Fund I	228,963		2,146		7,530		76	236,493			2,439	—		—
Inflation Protection Fund	258,326		2,277		77,598		670	23,249			199	312,675		2,748
International Emerging Markets Fund	161,761		3,621		9,432		224	78,472			1,829	92,721		2,034
LargeCap Growth Fund	318,795		3,361		10,521		114	329,316			3,713	—		—
LargeCap Growth Fund I	1,059,246		12,321		52,373		665	455,945			5,904	655,674		7,584
LargeCap S&P 500 Index Fund	568,819		6,628		234,652		3,474	47,079			694	756,392		9,410
LargeCap Value Fund	514,960		6,482		25,941		328	187,029			2,356	353,872		4,458
LargeCap Value Fund III	681,988		9,186		30,420		477	378,757			5,983	333,651		4,358
MidCap Fund	—		—		44,098		1,035	2,270			54	41,828		981
MidCap Growth Fund III	351,502		3,338		20,255		215	22,724			245	349,033		3,308
MidCap Value Fund III	179,416		2,936		10,936		215	12,318			244	178,034		2,909
Origin Emerging Markets Fund	—		—		220,832		2,147	8,168			83	212,664		2,063
Overseas Fund	746,753		7,417		115,795		1,261	55,096			595	807,452		8,083
Preferred Securities Fund	231,582		2,356		11,307		117	242,889			2,539	—		—
SmallCap Growth Fund I	207,892		1,839		10,424		128	11,587			145	206,729		1,822
SmallCap Value Fund II	198,589		1,674		10,078		132	11,268			150	197,399		1,658
		$	108,671		$		32,287			$	33,049	$		109,992
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$			—	$			2			$			—
Bond & Mortgage Securities Account				—				—						—
Bond Market Index Fund				—				—						—
Diversified International Fund				—				(1	)					—
Diversified Real Asset Fund				—				—						—
Equity Income Fund				44				1						—
Global Diversified Income Fund				61				(1	)					—
Global Multi-Strategy Fund				—				—						—
Global Opportunities Fund				—				—						—
Global Real Estate Securities Fund				54				354						—
High Yield Fund I				20				217						—
Inflation Protection Fund				—				—						—
International Emerging Markets Fund				—				18						—
LargeCap Growth Fund				—				238						—
LargeCap Growth Fund I				—				502						—
LargeCap S&P 500 Index Fund				—				2						—
LargeCap Value Fund				—				4						—
LargeCap Value Fund III				—				678						—
MidCap Fund				—				—						—
MidCap Growth Fund III				—				—						—
MidCap Value Fund III				—				2						—
Origin Emerging Markets Fund				—				(1	)					—
Overseas Fund				—				—						—
Preferred Securities Fund				31				66						—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				2						—
	$			210	$			2,083			$			—
Amounts in thousands except shares

See accompanying notes.

197

Schedule of Investments
Principal LifeTime 2040 Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held   Value (000's)
Principal Funds, Inc. Institutional Class - 92.97%
Bond Market Index Fund (a)		93,673	$	1,028
Diversified International Fund (a)		326,170		3,917
Diversified Real Asset Fund (a)		127,636		1,521
Global Multi-Strategy Fund (a)		92,588		1,029
Global Opportunities Fund (a)		211,374		2,536
Global Real Estate Securities Fund (a)		247,031		2,208
High Yield Fund I (a)		89,892		905
Inflation Protection Fund (a)		48,721		413
International Emerging Markets Fund (a)		40,768		976
LargeCap Growth Fund (a)		156,820		1,796
LargeCap Growth Fund I (a)		365,677		4,794
LargeCap S&P 500 Index Fund (a)		343,208		5,011
LargeCap Value Fund (a)		229,096		2,912
LargeCap Value Fund III (a)		209,831		3,347
MidCap Growth Fund III (a)		164,345		1,780
MidCap Value Fund III (a)		91,868		1,824
Origin Emerging Markets Fund (a),(b)		99,911		1,006
Overseas Fund (a)		364,531		3,915
SmallCap Growth Fund I (a)		89,935		1,181
SmallCap Value Fund II (a)		80,028		1,084
		$		43,183
Principal Variable Contracts Funds, Inc. Class 1 - 7.05%
Bond & Mortgage Securities Account (a)		285,160		3,274
TOTAL INVESTMENT COMPANIES		$		46,457
Total Investments		$		46,457
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(7	)
TOTAL NET ASSETS - 100.00%		$		46,450

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	51.08	%
International Equity Funds	31.34	%
Fixed Income Funds	12.10	%
Specialty Funds	5.50	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

198

Schedule of Investments
Principal LifeTime 2040 Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015            June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond & Mortgage Securities Account	266,039	$	3,074		36,130	$	418	17,009		$	196	285,160	$	3,296
Bond Market Index Fund	87,033		969		12,551		139	5,911			66	93,673		1,042
Diversified International Fund	290,599		3,615		54,619		658	19,048			229	326,170		4,044
Diversified Real Asset Fund	54,373		612		79,072		955	5,809			71	127,636		1,496
Global Multi-Strategy Fund	85,868		904		12,703		142	5,983			67	92,588		979
Global Opportunities Fund	197,769		2,179		25,723		309	12,118			146	211,374		2,342
Global Real Estate Securities Fund	229,461		1,773		31,259		297	13,689			131	247,031		1,939
High Yield Fund I	81,699		814		13,415		137	5,222			54	89,892		897
Inflation Protection Fund	—		—		50,212		429	1,491			12	48,721		417
International Emerging Markets Fund	62,753		1,650		7,522		180	29,507			689	40,768		1,124
LargeCap Growth Fund	147,717		1,565		17,194		193	8,091			92	156,820		1,666
LargeCap Growth Fund I	446,008		5,233		48,558		627	128,889			1,699	365,677		4,246
LargeCap S&P 500 Index Fund	229,346		2,691		130,817		1,940	16,955			250	343,208		4,381
LargeCap Value Fund	214,330		2,715		27,772		354	13,006			166	229,096		2,903
LargeCap Value Fund III	295,114		4,002		29,437		467	114,720			1,825	209,831		2,793
MidCap Growth Fund III	135,812		1,443		37,692		413	9,159			99	164,345		1,757
MidCap Value Fund III	76,201		1,267		20,636		413	4,969			100	91,868		1,580
Origin Emerging Markets Fund	—		—		102,579		1,014	2,668			27	99,911		987
Overseas Fund	325,043		3,340		60,644		658	21,156			228	364,531		3,770
Preferred Securities Fund	64,017		667		4,677		48	68,694			718	—		—
SmallCap Growth Fund I	85,035		968		9,231		115	4,331			54	89,935		1,029
SmallCap Value Fund II	75,360		710		8,805		116	4,137			55	80,028		771
		$	40,191		$		10,022			$	6,974	$		43,459
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond & Mortgage Securities Account	$			—	$			—		$				—
Bond Market Index Fund				—				—						—
Diversified International Fund				—				—						—
Diversified Real Asset Fund				—				—						—
Global Multi-Strategy Fund				—				—						—
Global Opportunities Fund				—				—						—
Global Real Estate Securities Fund				20				—						—
High Yield Fund I				24				—						—
Inflation Protection Fund				—				—						—
International Emerging Markets Fund				—				(17	)					—
LargeCap Growth Fund				—				—						—
LargeCap Growth Fund I				—				85						—
LargeCap S&P 500 Index Fund				—				—						—
LargeCap Value Fund				—				—						—
LargeCap Value Fund III				—				149						—
MidCap Growth Fund III				—				—						—
MidCap Value Fund III				—				—						—
Origin Emerging Markets Fund				—				—						—
Overseas Fund				—				—						—
Preferred Securities Fund				9				3						—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				—						—
	$			53	$			220		$				—
Amounts in thousands except shares

See accompanying notes.

199

Schedule of Investments
Principal LifeTime 2050 Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 96.53%
Bond Market Index Fund (a)		16,958	$	186
Diversified International Fund (a)		171,770		2,063
Diversified Real Asset Fund (a)		53,787		641
Global Multi-Strategy Fund (a)		44,558		495
Global Opportunities Fund (a)		119,851		1,438
Global Real Estate Securities Fund (a)		133,485		1,193
High Yield Fund I (a)		41,504		418
International Emerging Markets Fund (a)		22,839		547
LargeCap Growth Fund (a)		87,220		999
LargeCap Growth Fund I (a)		198,166		2,598
LargeCap S&P 500 Index Fund (a)		187,817		2,742
LargeCap Value Fund (a)		116,393		1,479
LargeCap Value Fund III (a)		111,817		1,783
MidCap Growth Fund III (a)		91,941		996
MidCap Value Fund III (a)		50,562		1,004
Origin Emerging Markets Fund (a),(b)		46,701		470
Overseas Fund (a)		187,850		2,018
SmallCap Growth Fund I (a)		46,186		606
SmallCap Value Fund II (a)		43,948		596
		$		22,272
Principal Variable Contracts Funds, Inc. Class 1 - 3.50%
Bond & Mortgage Securities Account (a)		70,351		808
TOTAL INVESTMENT COMPANIES		$		23,080
Total Investments		$		23,080
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(6	)
TOTAL NET ASSETS - 100.00%		$		23,074

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	55.49	%
International Equity Funds	33.49	%
Fixed Income Funds	6.12	%
Specialty Funds	4.93	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

200

Schedule of Investments
Principal LifeTime 2050 Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015          June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Bond & Mortgage Securities Account	38,120	$	445		38,947	$	456	6,716		$	77	70,351	$	824
Bond Market Index Fund	16,503		184		2,600		29	2,145			24	16,958		189
Diversified International Fund	166,673		2,117		24,522		290	19,425			232	171,770		2,177
Diversified Real Asset Fund	28,553		320		30,201		365	4,967			61	53,787		624
Global Multi-Strategy Fund	32,659		337		16,331		184	4,432			50	44,558		471
Global Opportunities Fund	116,435		1,262		16,718		200	13,302			160	119,851		1,302
Global Real Estate Securities Fund	128,671		980		18,426		176	13,612			129	133,485		1,027
High Yield Fund I	39,201		381		7,159		73	4,856			50	41,504		404
International Emerging Markets Fund	40,498		1,034		5,264		125	22,923			535	22,839		615
LargeCap Growth Fund	85,164		898		10,109		113	8,053			90	87,220		921
LargeCap Growth Fund I	243,430		2,833		30,022		385	75,286			991	198,166		2,296
LargeCap S&P 500 Index Fund	125,211		1,462		80,057		1,187	17,451			257	187,817		2,392
LargeCap Value Fund	113,702		1,430		15,742		201	13,051			166	116,393		1,465
LargeCap Value Fund III	159,825		2,157		18,747		296	66,755			1,065	111,817		1,487
MidCap Growth Fund III	72,395		731		28,784		316	9,238			100	91,941		947
MidCap Value Fund III	42,283		687		13,340		267	5,061			100	50,562		854
Origin Emerging Markets Fund	—		—		49,850		472	3,149			32	46,701		442
Overseas Fund	182,273		1,823		27,185		290	21,608			232	187,850		1,881
Preferred Securities Fund	43,999		452		4,602		48	48,601			509	—		—
SmallCap Growth Fund I	45,128		476		5,385		66	4,327			54	46,186		488
SmallCap Value Fund II	42,932		382		5,144		67	4,128			55	43,948		395
		$	20,391		$		5,606			$	4,969	$		21,201
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Bond & Mortgage Securities Account	$			—	$			—		$				—
Bond Market Index Fund				—				—						—
Diversified International Fund				—				2						—
Diversified Real Asset Fund				—				—						—
Global Multi-Strategy Fund				—				—						—
Global Opportunities Fund				—				—						—
Global Real Estate Securities Fund				11				—						—
High Yield Fund I				11				—						—
International Emerging Markets Fund				—				(9	)					—
LargeCap Growth Fund				—				—						—
LargeCap Growth Fund I				—				69						—
LargeCap S&P 500 Index Fund				—				—						—
LargeCap Value Fund				—				—						—
LargeCap Value Fund III				—				99						—
MidCap Growth Fund III				—				—						—
MidCap Value Fund III				—				—						—
Origin Emerging Markets Fund				—				2						—
Overseas Fund				—				—						—
Preferred Securities Fund				6				9						—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				1						—
	$			28	$			173		$				—
Amounts in thousands except shares

See accompanying notes.

201

Schedule of Investments
Principal LifeTime 2060 Account
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.21%	Shares Held   Value (000's)
Principal Funds, Inc. Institutional Class - 98.36%
Bond Market Index Fund (a)		1,018	$	11
Diversified International Fund (a)		15,150		182
Diversified Real Asset Fund (a)		3,204		38
Global Multi-Strategy Fund (a)		3,407		38
Global Opportunities Fund (a)		10,873		130
Global Real Estate Securities Fund (a)		11,464		102
High Yield Fund I (a)		3,746		38
International Emerging Markets Fund (a)		2,338		56
LargeCap Growth Fund (a)		6,452		74
LargeCap Growth Fund I (a)		17,354		228
LargeCap S&P 500 Index Fund (a)		17,128		250
LargeCap Value Fund (a)		9,793		124
LargeCap Value Fund III (a)		9,518		152
MidCap Growth Fund III (a)		8,305		90
MidCap Value Fund III (a)		4,544		90
Origin Emerging Markets Fund (a),(b)		4,363		44
Overseas Fund (a)		16,565		178
SmallCap Growth Fund I (a)		3,375		44
SmallCap Value Fund II (a)		3,229		44
		$		1,913
Principal Variable Contracts Funds, Inc. Class 1 - 1.85%
Bond & Mortgage Securities Account (a)		3,114		37
TOTAL INVESTMENT COMPANIES		$		1,950
Total Investments		$		1,950
Liabilities in Excess of Other Assets, Net - (0.21)%		$		(5	)
TOTAL NET ASSETS - 100.00%		$		1,945

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	56.35	%
International Equity Funds	35.62	%
Fixed Income Funds	4.35	%
Specialty Funds	3.89	%
Liabilities in Excess of Other Assets, Net	(0.21	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

202

Schedule of Investments
Principal LifeTime 2060 Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales		Sales	June 30, 2015        June 30, 2015
	Shares		Cost		Shares		Cost	Shares		Proceeds	Shares		Cost
Bond & Mortgage Securities Account	1,316	$	15		1,904	$	22	106	$	3	3,114	$	34
Bond Market Index Fund	426		5		629		7	37		1	1,018		11
Diversified International Fund	6,408		74		9,273		110	531		6	15,150		178
Diversified Real Asset Fund	972		12		2,728		33	496		6	3,204		39
Global Multi-Strategy Fund	1,446		16		2,078		23	117		1	3,407		38
Global Opportunities Fund	4,735		57		6,507		78	369		4	10,873		131
Global Real Estate Securities Fund	5,296		44		6,533		62	365		4	11,464		102
High Yield Fund I	1,531		16		2,343		24	128		1	3,746		39
International Emerging Markets Fund	1,702		39		1,836		44	1,200		29	2,338		54
LargeCap Growth Fund	2,900		31		3,768		42	216		2	6,452		71
LargeCap Growth Fund I	9,234		116		11,058		143	2,938		39	17,354		220
LargeCap S&P 500 Index Fund	4,899		63		12,627		186	398		6	17,128		243
LargeCap Value Fund	4,095		52		6,019		77	321		4	9,793		125
LargeCap Value Fund III	6,211		88		6,837		108	3,530		56	9,518		141
MidCap Growth Fund III	2,835		33		5,700		62	230		3	8,305		92
MidCap Value Fund III	1,561		29		3,107		62	124		2	4,544		89
Origin Emerging Markets Fund	—		—		4,392		43	29		—	4,363		43
Overseas Fund	6,857		78		10,296		110	588		6	16,565		182
Preferred Securities Fund	1,622		16		1,198		12	2,820		28	—		—
SmallCap Growth Fund I	1,434		19		2,058		26	117		1	3,375		44
SmallCap Value Fund II	1,394		18		1,945		26	110		1	3,229		43
		$	821		$		1,300		$	203	$		1,919
							Realized Gain/Loss				Realized Gain from
			Income				on Investments			Capital Gain Distributions
Bond & Mortgage Securities Account	$			—	$			—	$				—
Bond Market Index Fund				—				—					—
Diversified International Fund				—				—					—
Diversified Real Asset Fund				—				—					—
Global Multi-Strategy Fund				—				—					—
Global Opportunities Fund				—				—					—
Global Real Estate Securities Fund				1				—					—
High Yield Fund I				1				—					—
International Emerging Markets Fund				—				—					—
LargeCap Growth Fund				—				—					—
LargeCap Growth Fund I				—				—					—
LargeCap S&P 500 Index Fund				—				—					—
LargeCap Value Fund				—				—					—
LargeCap Value Fund III				—				1					—
MidCap Growth Fund III				—				—					—
MidCap Value Fund III				—				—					—
Origin Emerging Markets Fund				—				—					—
Overseas Fund				—				—					—
Preferred Securities Fund				—				—					—
SmallCap Growth Fund I				—				—					—
SmallCap Value Fund II				—				—					—
	$			2	$			1	$				—
Amounts in thousands except shares

See accompanying notes.

203

					Schedule of Investments
			Principal LifeTime Strategic Income Account
					June 30, 2015 (unaudited)
INVESTMENT COMPANIES - 100.02%		Shares Held                                   Value (000's)
Principal Funds, Inc. Institutional Class - 56.80%
Blue Chip Fund (a)			30,420	$	481
Bond Market Index Fund (a)			237,033		2,600
Diversified International Fund (a)			53,156		638
Diversified Real Asset Fund (a)			72,352		863
Equity Income Fund (a)			40,585		1,069
Global Diversified Income Fund (a)			210,046		2,915
Global Multi-Strategy Fund (a)			102,535		1,140
Global Opportunities Fund (a)			21,125		254
Inflation Protection Fund (a)			386,038		3,270
International Emerging Markets Fund (a)			7,163		171
LargeCap Growth Fund I (a)			46,280		607
LargeCap S&P 500 Index Fund (a)			45,069		658
MidCap Fund (a)			27,821		640
Origin Emerging Markets Fund (a),(b)			17,056		172
Overseas Fund (a)			59,778		642
SmallCap Growth Fund I (a)			10,155		133
SmallCap Value Fund II (a)			9,681		131
			$		16,384
Principal Variable Contracts Funds, Inc. Class 1 - 43.22%
Bond & Mortgage Securities Account (a)			666,908		7,656
Short-Term Income Account (a)			1,842,976		4,810
			$		12,466
TOTAL INVESTMENT COMPANIES			$		28,850
Total Investments			$		28,850
Liabilities in Excess of Other Assets, Net - (0.02)%			$		(5	)
TOTAL NET ASSETS - 100.00%			$		28,845
(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional
	information.
(b)	Non-Income Producing Security
	Portfolio Summary (unaudited)
Fund Type					Percent
Fixed Income Funds					63.57	%
Specialty Funds					17.05	%
Domestic Equity Funds					12.89	%
International Equity Funds					6.51	%
Liabilities in Excess of Other Assets, Net					(0.02	)%
TOTAL NET ASSETS					100.00	%

See accompanying notes.

204

Schedule of Investments
Principal LifeTime Strategic Income Account
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015          June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—		32,543	$	512	2,123		$	34	30,420	$	478
Bond & Mortgage Securities Account	743,612		8,771		40,050		463	116,754			1,355	666,908		7,885
Bond Market Index Fund	249,296		2,775		14,293		158	26,556			295	237,033		2,638
Diversified International Fund	55,893		750		3,115		37	5,852			71	53,156		720
Diversified Real Asset Fund	109,630		1,149		5,789		70	43,067			520	72,352		751
Equity Income Fund	79,781		1,510		3,510		94	42,706			1,139	40,585		767
Global Diversified Income Fund	149,602		1,487		90,331		1,280	29,887			421	210,046		2,345
Global Multi-Strategy Fund	71,871		743		40,910		458	10,246			115	102,535		1,086
Global Opportunities Fund	22,354		241		1,407		17	2,636			32	21,125		227
High Yield Fund I	104,822		1,096		2,899		29	107,721			1,111	—		—
Inflation Protection Fund	228,467		1,836		194,889		1,653	37,318			319	386,038		3,172
International Emerging Markets Fund	8,405		203		484		12	1,726			42	7,163		173
LargeCap Growth Fund I	87,126		1,013		3,255		42	44,101			571	46,280		536
LargeCap S&P 500 Index Fund	34,433		401		16,279		241	5,643			83	45,069		560
MidCap Fund	37,686		567		1,609		37	11,474			270	27,821		408
Origin Emerging Markets Fund	—		—		18,092		173	1,036			10	17,056		164
Overseas Fund	62,886		585		3,487		37	6,595			71	59,778		552
Short-Term Income Account	1,940,482		4,888		109,885		286	207,391			541	1,842,976		4,634
SmallCap Growth Fund I	10,788		93		708		9	1,341			17	10,155		86
SmallCap Value Fund II	10,282		85		667		9	1,268			16	9,681		78
		$	28,193		$		5,617			$	7,033	$		27,260
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$			—	$			—		$				—
Bond & Mortgage Securities Account				—				6						—
Bond Market Index Fund				—				—						—
Diversified International Fund				—				4						—
Diversified Real Asset Fund				—				52						—
Equity Income Fund				12				302						—
Global Diversified Income Fund				59				(1	)					—
Global Multi-Strategy Fund				—				—						—
Global Opportunities Fund				—				1						—
High Yield Fund I				9				(14	)					—
Inflation Protection Fund				—				2						—
International Emerging Markets Fund				—				—						—
LargeCap Growth Fund I				—				52						—
LargeCap S&P 500 Index Fund				—				1						—
MidCap Fund				—				74						—
Origin Emerging Markets Fund				—				1						—
Overseas Fund				—				1						—
Short-Term Income Account				—				1						—
SmallCap Growth Fund I				—				1						—
SmallCap Value Fund II				—				—						—
	$			80	$			483		$				—
Amounts in thousands except shares

See accompanying notes.

205

Schedule of Investments
Real Estate Securities Account
June 30, 2015 (unaudited)

COMMON STOCKS - 99.24%	Shares Held	Value (000			's)
Healthcare - Services - 1.11%
Brookdale Senior Living Inc (a)	48,635		$	1,687
REITS - 98.13%
Alexandria Real Estate Equities Inc	34,000			2,974
American Realty Capital Properties Inc	150,328			1,222
American Tower Corp	26,399			2,463
Apartment Investment & Management Co	133,700			4,938
AvalonBay Communities Inc	37,155			5,940
Boston Properties Inc	54,102			6,549
Camden Property Trust	36,783			2,732
CBL & Associates Properties Inc	14,628			237
CubeSmart	132,382			3,066
CyrusOne Inc	33,978			1,001
DDR Corp	166,999			2,582
Duke Realty Corp	133,330			2,476
Education Realty Trust Inc	44,268			1,388
EPR Properties	49,789			2,727
Equity One Inc	113,339			2,645
Equity Residential	72,357			5,077
Essex Property Trust Inc	38,016			8,078
Extra Space Storage Inc	16,640			1,085
Federal Realty Investment Trust	22,648			2,901
First Industrial Realty Trust Inc	179,242			3,357
General Growth Properties Inc	231,853			5,949
GEO Group Inc/The	8,613			294
Health Care REIT Inc	101,093			6,635
Host Hotels & Resorts Inc	250,157			4,961
Hudson Pacific Properties Inc	52,075			1,477
Kilroy Realty Corp	55,696			3,740
Macerich Co/The	6,800			507
Pebblebrook Hotel Trust	100,350			4,303
Prologis Inc	165,613			6,144
Public Storage	48,077			8,864
Saul Centers Inc	33,004			1,623
Simon Property Group Inc	102,287			17,698
SL Green Realty Corp	59,740			6,565
STORE Capital Corp	43,169			868
Strategic Hotels & Resorts Inc (a)	197,896			2,399
Sun Communities Inc	36,392			2,250
Sunstone Hotel Investors Inc	188,614			2,831
Ventas Inc	114,424			7,105
Vornado Realty Trust	21,853			2,075
WP GLIMCHER Inc	16,646			225
		$		149,951
TOTAL COMMON STOCKS		$		151,638
INVESTMENT COMPANIES - 0.00%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 0.00%
BlackRock Liquidity Funds FedFund Portfolio	1,895			2
TOTAL INVESTMENT COMPANIES		$		2
Total Investments		$		151,640
Other Assets in Excess of Liabilities, Net - 0.76%		$		1,167
TOTAL NET ASSETS - 100.00%		$		152,807
(a) Non-Income Producing Security
Portfolio Summary (unaudited)
Sector				Percent
Financial				98.13	%
Consumer, Non-cyclical				1.11	%
Exchange Traded Funds				0.00	%
Other Assets in Excess of Liabilities, Net				0.76	%
TOTAL NET ASSETS				100.00	%

See accompanying notes.

206

Schedule of Investments
SAM Balanced Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held     Value (000's)
Principal Funds, Inc. Institutional Class - 51.00%
Blue Chip Fund (a)		2,602,916	$	41,178
Diversified International Fund (a)		1,240,892		14,903
Global Diversified Income Fund (a)		1,286,793		17,861
Global Multi-Strategy Fund (a)		6,172,366		68,637
Global Real Estate Securities Fund (a)		2,005,409		17,928
High Yield Fund (a)		2,969,203		21,913
Inflation Protection Fund (a)		1,611,737		13,652
International Emerging Markets Fund (a)		572,767		13,706
LargeCap Growth Fund (a)		7,313,001		83,734
LargeCap Value Fund (a)		5,085,942		64,642
MidCap Value Fund I (a)		1,125,719		16,728
Preferred Securities Fund (a)		365,909		3,721
Principal Capital Appreciation Fund (a)		737,183		44,179
SmallCap Growth Fund I (a)		73,759		969
SmallCap Value Fund II (a)		498,756		6,758
Small-MidCap Dividend Income Fund (a)		1,987,414		27,009
		$		457,518
Principal Variable Contracts Funds, Inc. Class 1 - 49.02%
Diversified International Account (a)		3,429,757		51,172
Equity Income Account (a)		4,293,059		98,955
Government & High Quality Bond Account (a)		6,257,725		65,644
Income Account (a)	11,903,356			129,151
MidCap Account (a)		866,209		55,316
Short-Term Income Account (a)	15,121,113			39,466
		$		439,704
TOTAL INVESTMENT COMPANIES		$		897,222
Total Investments		$		897,222
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(198	)
TOTAL NET ASSETS - 100.00%		$		897,024

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	49.00	%
Fixed Income Funds	30.49	%
International Equity Funds	10.89	%
Specialty Funds	9.64	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

207

Schedule of Investments
SAM Balanced Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	June 30, 2015  June 30, 2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	2,782,489	$	39,000	3,938	$	64	183,511		$	2,916	2,602,916	$	36,167
Diversified International Account	5,052,004		53,927	4,095		62	1,626,342			22,733	3,429,757		34,791
Diversified International Fund	—		—	1,240,892		15,040	—			—	1,240,892		15,040
Equity Income Account	4,692,543		52,332	—		—	399,484			9,327	4,293,059		47,474
Global Diversified Income Fund	1,338,732		18,057	29,828		420	81,767			1,156	1,286,793		17,319
Global Multi-Strategy Fund	4,448,034		46,633	1,724,333		18,975	—			—	6,172,366		65,608
Global Real Estate Securities Fund	1,013,697		8,193	1,046,237		10,025	54,525			500	2,005,409		17,685
Government & High Quality Bond	6,654,476		65,657	18,955		199	415,706			4,377	6,257,725		61,516
Account
High Yield Fund	2,590,684		17,625	378,519		2,797	—			—	2,969,203		20,422
Income Account	12,440,973		121,674	—		—	537,617			5,864	11,903,356		115,889
Inflation Protection Fund	1,295,128		11,148	330,433		2,802	13,824			120	1,611,737		13,831
International Emerging Markets Fund	655,350		15,441	151,351		3,589	233,934			5,408	572,767		13,495
LargeCap Growth Fund	7,813,229		84,220	10,989		127	511,217			5,779	7,313,001		78,339
LargeCap Value Fund	8,194,515		106,259	21,166		272	3,129,739			39,596	5,085,942		65,657
MidCap Account	905,088		39,930	1,368		89	40,247			2,614	866,209		37,628
MidCap Value Fund I	242,199		3,953	883,521		12,949	—			—	1,125,719		16,902
Preferred Securities Fund	371,056		2,083	9,305		96	14,452			150	365,909		2,058
Principal Capital Appreciation Fund	874,988		44,541	—		—	137,805			8,327	737,183		37,265
Short-Term Income Account	16,080,585		40,843	76,499		199	1,035,971			2,698	15,121,113		38,329
SmallCap Growth Fund I	73,759		747	—		—	—			—	73,759		747
SmallCap Value Fund II	498,756		5,013	—		—	—			—	498,756		5,013
Small-MidCap Dividend Income Fund	2,065,534		22,800	24,696		342	102,816			1,438	1,987,414		21,698
		$	800,076		$	68,047			$	113,003	$		762,873
						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			19			$			—
Diversified International Account			—				3,535						—
Diversified International Fund			—				—						—
Equity Income Account			—				4,469						—
Global Diversified Income Fund			382				(2	)					—
Global Multi-Strategy Fund			—				—						—
Global Real Estate Securities Fund			181				(33	)					—
Government & High Quality Bond Account			—				37						—
High Yield Fund			614				—						—
Income Account			—				79						—
Inflation Protection Fund			—				1						—
International Emerging Markets Fund			—				(127	)					—
LargeCap Growth Fund			—				(229	)					—
LargeCap Value Fund			—				(1,278	)					—
MidCap Account			—				223						—
MidCap Value Fund I			—				—						—
Preferred Securities Fund			96				29						—
Principal Capital Appreciation Fund			—				1,051						—
Short-Term Income Account			—				(15	)					—
SmallCap Growth Fund I			—				—						—
SmallCap Value Fund II			—				—						—
Small-MidCap Dividend Income Fund			303				(6	)					—
	$		1,576	$			7,753			$			—
Amounts in thousands except shares

See accompanying notes.

208

Schedule of Investments
SAM Conservative Balanced Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 42.69%
Blue Chip Fund (a)		390,801	$	6,183
Diversified International Fund (a)		207,855		2,496
Global Diversified Income Fund (a)		522,781		7,256
Global Multi-Strategy Fund (a)		1,077,665		11,984
Global Real Estate Securities Fund (a)		372,538		3,331
High Yield Fund (a)		1,462,477		10,793
Inflation Protection Fund (a)		604,461		5,120
International Emerging Markets Fund (a)		95,958		2,296
LargeCap Growth Fund (a)		1,291,680		14,790
LargeCap Value Fund (a)		892,072		11,338
MidCap Value Fund I (a)		276,932		4,115
Preferred Securities Fund (a)		113,152		1,151
Principal Capital Appreciation Fund (a)		137,127		8,218
SmallCap Growth Fund I (a)		20,894		274
SmallCap Value Fund II (a)		73,229		992
Small-MidCap Dividend Income Fund (a)		312,201		4,243
		$		94,580
Principal Variable Contracts Funds, Inc. Class 1 - 57.33%
Bond & Mortgage Securities Account (a)		369,167		4,238
Diversified International Account (a)		549,281		8,195
Equity Income Account (a)		636,575		14,673
Government & High Quality Bond Account (a)		2,623,750		27,523
Income Account (a)		4,402,337		47,765
MidCap Account (a)		125,898		8,040
Short-Term Income Account (a)		6,358,896		16,597
		$		127,031
TOTAL INVESTMENT COMPANIES		$		221,611
Total Investments		$		221,611
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(51	)
TOTAL NET ASSETS - 100.00%		$		221,560

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	51.08	%
Domestic Equity Funds	32.89	%
Specialty Funds	8.68	%
International Equity Funds	7.37	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

209

Schedule of Investments
SAM Conservative Balanced Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015 June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	397,512	$	5,444		11,491	$	184	18,202		$	289	390,801	$	5,338
Bond & Mortgage Securities Account	396,098		4,603		—		—	26,931			312	369,167		4,287
Diversified International Account	796,751		8,228		10,836		164	258,306			3,604	549,281		5,344
Diversified International Fund	—		—		207,855		2,519	—			—	207,855		2,519
Equity Income Account	666,857		7,436		15,112		356	45,394			1,061	636,575		7,056
Global Diversified Income Fund	528,519		7,176		23,754		336	29,492			416	522,781		7,086
Global Multi-Strategy Fund	897,556		9,492		180,109		1,989	—			—	1,077,665		11,481
Global Real Estate Securities Fund	281,701		2,288		118,099		1,123	27,262			250	372,538		3,148
Government & High Quality Bond	2,670,835		26,905		89,444		944	136,529			1,437	2,623,750		26,415
Account
High Yield Fund	1,364,721		9,477		178,353		1,317	80,597			600	1,462,477		10,172
Income Account	4,494,303		44,866		122,696		1,342	214,662			2,340	4,402,337		43,886
Inflation Protection Fund	412,086		3,547		192,376		1,643	—			—	604,462		5,190
International Emerging Markets Fund	109,246		2,563		31,140		739	44,428			1,027	95,958		2,251
LargeCap Growth Fund	1,376,642		14,994		—		—	84,962			959	1,291,680		13,977
LargeCap Value Fund	1,313,046		16,996		27,765		356	448,739			5,711	892,072		11,492
MidCap Account	127,557		5,216		5,757		348	7,416			481	125,898		5,116
MidCap Value Fund I	117,560		1,898		159,372		2,337	—			—	276,932		4,235
Preferred Securities Fund	110,275		619		2,877		30	—			—	113,152		649
Principal Capital Appreciation Fund	156,440		7,964		—		—	19,313			1,163	137,127		6,932
Short-Term Income Account	6,529,387		16,430		225,670		589	396,161			1,032	6,358,896		15,980
SmallCap Growth Fund I	20,894		212		—		—	—			—	20,894		212
SmallCap Value Fund II	73,229		726		—		—	—			—	73,229		726
Small-MidCap Dividend Income Fund	331,050		3,592		3,445		48	22,294			313	312,201		3,326
		$	200,672		$		16,364			$	20,995	$		196,818
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$			—	$			(1	)		$			—
Bond & Mortgage Securities Account				—				(4	)					—
Diversified International Account				—				556						—
Diversified International Fund				—				—						—
Equity Income Account				—				325						—
Global Diversified Income Fund				152				(10	)					—
Global Multi-Strategy Fund				—				—						—
Global Real Estate Securities Fund				34				(13	)					—
Government & High Quality Bond Account				—				3						—
High Yield Fund				316				(22	)					—
Income Account				—				18						—
Inflation Protection Fund				—				—						—
International Emerging Markets Fund				—				(24	)					—
LargeCap Growth Fund				—				(58	)					—
LargeCap Value Fund				—				(149	)					—
MidCap Account				—				33						—
MidCap Value Fund I				—				—						—
Preferred Securities Fund				30				—						—
Principal Capital Appreciation Fund				—				131						—
Short-Term Income Account				—				(7	)					—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				—						—
Small-MidCap Dividend Income Fund				48				(1	)					—
	$			580	$			777			$			—
Amounts in thousands except shares

See accompanying notes.

210

Schedule of Investments
SAM Conservative Growth Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 62.67%
Blue Chip Fund (a)		1,118,903	$	17,701
Diversified International Fund (a)		602,666		7,238
Diversified Real Asset Fund (a)		878,047		10,466
Global Multi-Strategy Fund (a)		2,745,114		30,526
Global Real Estate Securities Fund (a)		894,346		7,995
High Yield Fund (a)		254,478		1,878
International Emerging Markets Fund (a)		83,912		2,008
LargeCap Growth Fund (a)		3,336,119		38,199
LargeCap Value Fund (a)		2,439,158		31,002
MidCap Value Fund I (a)		533,072		7,921
Origin Emerging Markets Fund (a),(b)		331,658		3,340
Preferred Securities Fund (a)		36,365		370
Principal Capital Appreciation Fund (a)		333,904		20,011
SmallCap Growth Fund I (a)		50,087		658
SmallCap Value Fund II (a)		123,629		1,675
Small-MidCap Dividend Income Fund (a)		888,993		12,081
		$		193,069
Principal Variable Contracts Funds, Inc. Class 1 - 37.36%
Diversified International Account (a)		1,440,415		21,491
Equity Income Account (a)		1,705,794		39,318
Government & High Quality Bond Account (a)		718,742		7,540
Income Account (a)		1,403,485		15,228
MidCap Account (a)		419,130		26,766
Short-Term Income Account (a)		1,814,722		4,736
		$		115,079
TOTAL INVESTMENT COMPANIES		$		308,148
Total Investments		$		308,148
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(86	)
TOTAL NET ASSETS - 100.00%		$		308,062

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	63.40	%
International Equity Funds	13.66	%
Specialty Funds	13.31	%
Fixed Income Funds	9.66	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

211

Schedule of Investments
SAM Conservative Growth Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015  June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	1,121,994	$	15,701		42,745	$	672	45,836		$	733	1,118,903	$	15,647
Diversified International Account	2,094,008		26,131		35,193		528	688,786			9,657	1,440,415		16,822
Diversified International Fund	—		—		602,666		7,305	—			—	602,666		7,305
Diversified Real Asset Fund	871,224		10,211		28,721		348	21,898			266	878,047		10,283
Equity Income Account	1,830,072		20,448		46,815		1,090	171,093			4,009	1,705,794		18,948
Global Multi-Strategy Fund	2,098,559		22,401		727,665		8,023	81,110			909	2,745,114		29,510
Global Real Estate Securities Fund	797,815		6,823		204,330		1,950	107,799			998	894,346		7,733
Government & High Quality Bond	720,217		6,965		24,816		261	26,291			276	718,742		6,951
Account
High Yield Fund	233,667		1,574		20,811		153	—			—	254,478		1,727
Income Account	1,255,785		12,061		175,593		1,907	27,893			304	1,403,485		13,666
International Emerging Markets Fund	300,706		7,077		—		—	216,794			5,108	83,912		1,948
LargeCap Growth Fund	3,338,967		36,250		105,877		1,204	108,725			1,233	3,336,119		36,159
LargeCap Value Fund	3,267,577		42,345		46,753		598	875,172			11,066	2,439,158		31,509
MidCap Account	352,126		16,536		81,815		4,920	14,811			956	419,130		20,543
MidCap Value Fund I	166,656		2,692		385,332		5,640	18,916			287	533,072		8,018
Origin Emerging Markets Fund	—		—		331,658		3,300	—			—	331,658		3,300
Preferred Securities Fund	35,441		215		925		10	—			—	36,366		225
Principal Capital Appreciation Fund	363,569		18,505		7,258		435	36,923			2,238	333,904		16,876
Short-Term Income Account	1,716,244		4,383		98,478		257	—			—	1,814,722		4,640
SmallCap Growth Fund I	50,087		507		—		—	—			—	50,087		507
SmallCap Value Fund II	123,629		1,218		—		—	—			—	123,629		1,218
Small-MidCap Dividend Income Fund	881,832		10,043		40,700		567	33,539			471	888,993		10,137
		$	262,086		$		39,168			$	38,511	$		263,672
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$			—	$			7			$			—
Diversified International Account				—				(180	)					—
Diversified International Fund				—				—						—
Diversified Real Asset Fund				—				(10	)					—
Equity Income Account				—				1,419						—
Global Multi-Strategy Fund				—				(5	)					—
Global Real Estate Securities Fund				85				(42	)					—
Government & High Quality Bond Account				—				1						—
High Yield Fund				54				—						—
Income Account				—				2						—
International Emerging Markets Fund				—				(21	)					—
LargeCap Growth Fund				—				(62	)					—
LargeCap Value Fund				—				(368	)					—
MidCap Account				—				43						—
MidCap Value Fund I				—				(27	)					—
Origin Emerging Markets Fund				—				—						—
Preferred Securities Fund				10				—						—
Principal Capital Appreciation Fund				—				174						—
Short-Term Income Account				—				—						—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				—						—
Small-MidCap Dividend Income Fund				132				(2	)					—
	$			281	$			929			$			—
Amounts in thousands except shares

See accompanying notes.

212

Schedule of Investments
SAM Flexible Income Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held   Value (000's)
Principal Funds, Inc. Institutional Class - 35.93%
Blue Chip Fund (a)		77,222	$	1,222
Diversified International Fund (a)		173,267		2,081
Global Diversified Income Fund (a)		1,085,437		15,066
Global Real Estate Securities Fund (a)		245,227		2,192
High Yield Fund (a)		2,483,835		18,331
Inflation Protection Fund (a)		1,231,074		10,427
International Emerging Markets Fund (a)		89,090		2,132
LargeCap Growth Fund (a)		843,046		9,653
LargeCap Value Fund (a)		827,183		10,513
Preferred Securities Fund (a)		198,350		2,017
SmallCap Growth Fund I (a)		20,056		263
Small-MidCap Dividend Income Fund (a)		755,542		10,268
		$		84,165
Principal Variable Contracts Funds, Inc. Class 1 - 64.09%
Bond & Mortgage Securities Account (a)		443,644		5,093
Diversified International Account (a)		116,229		1,734
Equity Income Account (a)		1,006,973		23,211
Government & High Quality Bond Account (a)		2,337,876		24,525
Income Account (a)		6,733,827		73,062
Short-Term Income Account (a)		8,632,676		22,531
		$		150,156
TOTAL INVESTMENT COMPANIES		$		234,321
Total Investments		$		234,321
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(55	)
TOTAL NET ASSETS - 100.00%		$		234,266

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	66.58	%
Domestic Equity Funds	23.53	%
Specialty Funds	6.43	%
International Equity Funds	3.48	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

213

Schedule of Investments
SAM Flexible Income Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	June 30, 2015 June 30, 2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	166,707	$	2,149	—	$	—	89,485		$	1,423	77,222	$	984
Bond & Mortgage Securities Account	480,945		5,545	14,158		164	51,459			596	443,644		5,107
Diversified International Account	300,456		2,770	—		—	184,227			2,559	116,229		947
Diversified International Fund	—		—	173,267		2,100	—			—	173,267		2,100
Equity Income Account	1,035,499		14,144	32,657		767	61,183			1,434	1,006,973		13,483
Global Diversified Income Fund	1,094,973		14,933	55,632		785	65,168			918	1,085,437		14,761
Global Real Estate Securities Fund	264,882		1,968	2,320		22	21,975			213	245,227		1,789
Government & High Quality Bond	2,353,313		23,239	107,713		1,135	123,150			1,296	2,337,876		23,083
Account
High Yield Fund	1,949,914		13,756	695,937		5,115	162,016			1,207	2,483,835		17,600
Income Account	6,622,511		66,362	370,260		4,033	258,944			2,822	6,733,827		67,556
Inflation Protection Fund	1,168,795		10,067	72,364		618	10,085			86	1,231,074		10,598
International Emerging Markets Fund	79,337		1,889	30,133		715	20,380			473	89,090		2,110
LargeCap Growth Fund	868,876		9,308	29,702		337	55,532			634	843,046		9,031
LargeCap Value Fund	1,019,252		13,233	36,686		471	228,755			2,916	827,183		10,706
Preferred Securities Fund	351,413		2,006	8,091		84	161,154			1,655	198,350		1,059
Short-Term Income Account	8,611,528		21,314	393,913		1,027	372,765			972	8,632,676		21,366
SmallCap Growth Fund I	20,056		203	—		—	—			—	20,056		203
Small-MidCap Dividend Income Fund	779,702		8,245	26,357		368	50,517			708	755,542		7,914
		$	211,131		$	17,741			$	19,912	$		210,397
						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			258			$			—
Bond & Mortgage Securities Account			—				(6	)					—
Diversified International Account			—				736						—
Diversified International Fund			—				—						—
Equity Income Account			—				6						—
Global Diversified Income Fund			317				(39	)					—
Global Real Estate Securities Fund			22				12						—
Government & High Quality Bond Account			—				5						—
High Yield Fund			541				(64	)					—
Income Account			—				(17	)					—
Inflation Protection Fund			—				(1	)					—
International Emerging Markets Fund			—				(21	)					—
LargeCap Growth Fund			—				20						—
LargeCap Value Fund			—				(82	)					—
Preferred Securities Fund			84				624						—
Short-Term Income Account			—				(3	)					—
SmallCap Growth Fund I			—				—						—
Small-MidCap Dividend Income Fund			115				9						—
	$		1,079	$			1,437			$			—
Amounts in thousands except shares

See accompanying notes.

214

Schedule of Investments
SAM Strategic Growth Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 80.40%
Diversified International Fund (a)		1,366,442	$	16,411
Global Multi-Strategy Fund (a)		1,761,087		19,583
Global Real Estate Securities Fund (a)		1,099,534		9,830
International Emerging Markets Fund (a)		124,997		2,991
LargeCap Growth Fund (a)		3,194,971		36,583
LargeCap Value Fund (a)		2,387,195		30,341
MidCap Value Fund I (a)		980,955		14,577
Origin Emerging Markets Fund (a),(b)		691,179		6,960
Principal Capital Appreciation Fund (a)		695,834		41,701
SmallCap Growth Fund I (a)		255,568		3,356
SmallCap Value Fund II (a)		350,271		4,746
Small-MidCap Dividend Income Fund (a)		709,747		9,646
		$		196,725
Principal Variable Contracts Funds, Inc. Class 1 - 19.63%
Diversified International Account (a)		879,089		13,116
Equity Income Account (a)		1,514,433		34,907
		$		48,023
TOTAL INVESTMENT COMPANIES		$		244,748
Total Investments		$		244,748
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(72	)
TOTAL NET ASSETS - 100.00%		$		244,676

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	71.87	%
International Equity Funds	20.16	%
Specialty Funds	8.00	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

215

Schedule of Investments
SAM Strategic Growth Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015 June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Diversified International Account	1,304,494	$	14,885		32,435	$	487	457,840		$	6,411	879,089	$	9,539
Diversified International Fund	—		—		1,366,442		16,562	—			—	1,366,442		16,562
Equity Income Account	1,621,596		19,876		85,126		1,973	192,289			4,504	1,514,433		17,864
Global Multi-Strategy Fund	446,248		4,977		1,348,596		14,847	33,757			378	1,761,087		19,444
Global Real Estate Securities Fund	1,125,328		9,486		92,911		881	118,705			1,118	1,099,534		9,242
International Emerging Markets Fund	382,516		9,096		5,835		139	263,354			6,205	124,997		2,947
LargeCap Growth Fund	3,675,275		39,379		116,536		1,299	596,840			6,858	3,194,971		34,199
LargeCap Value Fund	3,464,774		45,010		100,595		1,290	1,178,174			14,830	2,387,195		30,830
MidCap Value Fund I	581,999		9,405		424,852		6,230	25,896			393	980,955		15,204
Origin Emerging Markets Fund	—		—		691,179		6,878	—			—	691,179		6,878
Principal Capital Appreciation Fund	763,314		42,312		33,699		1,991	101,179			6,130	695,834		38,080
SmallCap Growth Fund I	362,606		3,708		—		—	107,038			1,411	255,568		2,533
SmallCap Value Fund II	373,985		3,631		—		—	23,714			324	350,271		3,332
Small-MidCap Dividend Income Fund	683,462		7,799		43,460		607	17,175			242	709,747		8,160
		$	209,564		$		53,184			$	48,804	$		214,814
							Realized Gain/Loss					Realized Gain from
			Income				on Investments				Capital Gain Distributions
Diversified International Account	$			—	$			578			$			—
Diversified International Fund				—				—						—
Equity Income Account				—				519						—
Global Multi-Strategy Fund				—				(2	)					—
Global Real Estate Securities Fund				99				(7	)					—
International Emerging Markets Fund				—				(83	)					—
LargeCap Growth Fund				—				379						—
LargeCap Value Fund				—				(640	)					—
MidCap Value Fund I				—				(38	)					—
Origin Emerging Markets Fund				—				—						—
Principal Capital Appreciation Fund				—				(93	)					—
SmallCap Growth Fund I				—				236						—
SmallCap Value Fund II				—				25						—
Small-MidCap Dividend Income Fund				105				(4	)					—
	$			204	$			870			$			—
Amounts in thousands except shares

See accompanying notes.

216

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 2.74%			Shares Held    Value (000's)						Principal
							BONDS (continued)		Amount (000's)  Value (000's)
	Publicly Traded Investment Fund - 2.74%
	BlackRock Liquidity Funds FedFund Portfolio			6,984,452	$	6,984	Automobile Asset Backed Securities (continued)
							Westlake Automobile Receivables Trust 2014-
	TOTAL INVESTMENT COMPANIES			$		6,984	2
							0.97%, 10/16/2017(a),(b)		$	437	$	437
				Principal
	BONDS - 96.83	%		Amount (000's)     Value (000's)			Westlake Automobile Receivables Trust 2015-
							1
	Agriculture - 0.87%						1.17%, 03/15/2018(a),(b)			750		750
	Cargill Inc						Westlake Automobile Receivables Trust 2015-
	6.00%, 11/27/2017(a)		$	2,000	$	2,210	2
							1.28%, 07/16/2018(a),(b),(c)			1,250		1,250
	Airlines - 0.76%									$		16,716
	Delta Air Lines 2009-1 Class A Pass Through						Automobile Floor Plan Asset Backed Securities - 2.16%
	Trust						CNH Wholesale Master Note Trust
	7.75%, 06/17/2021			554		633	0.79%, 08/15/2019(a),(b)			1,250		1,251
	UAL 2009-1 Pass Through Trust						Ford Credit Floorplan Master Owner Trust A
	10.40%, 05/01/2018			93		101	0.57%, 01/15/2018(b)			500		500
	UAL 2009-2A Pass Through Trust						Nissan Master Owner Trust Receivables
	9.75%, 01/15/2017			1,097		1,193	0.49%, 02/15/2018(b)			1,000		1,000
				$		1,927	Volkswagen Credit Auto Master Trust
							0.54%, 07/22/2019(a),(b)			1,000		999
	Automobile Asset Backed Securities - 6.56%
	AmeriCredit Automobile Receivables 2015-1						World Omni Master Owner Trust
	0.77%, 04/09/2018			1,500		1,499	0.54%, 02/15/2018(a),(b)			1,750		1,750
	AmeriCredit Automobile Receivables Trust									$		5,500
	2013-5						Automobile Manufacturers - 2.84%
	0.56%, 03/08/2017(b)			64		64
							Daimler Finance North America LLC
	AmeriCredit Automobile Receivables Trust						0.70%, 03/02/2018(a),(b)			750		749
	2014-1						1.38%, 08/01/2017(a)			500		499
	0.57%, 07/10/2017(b)			321		321	1.65%, 03/02/2018(a)			500		498
	AmeriCredit Automobile Receivables Trust						Ford Motor Credit Co LLC
	2014-2						3.98%, 06/15/2016			1,930		1,975
	0.54%, 10/10/2017(b)			976		975
							PACCAR Financial Corp
	AmeriCredit Automobile Receivables Trust						0.88%, 12/06/2018(b)			750		753
	2014-3						1.45%, 03/09/2018			500		500
	0.64%, 04/09/2018			1,055		1,055	2.20%, 09/15/2019			1,000		1,007
	AmeriCredit Automobile Receivables Trust						Toyota Motor Credit Corp
	2015-2						2.10%, 01/17/2019			1,250		1,255
	0.83%, 09/10/2018(b)			750		749
	Capital Auto Receivables Asset Trust 2013-1									$		7,236
	0.97%, 01/22/2018			1,000		1,001	Banks - 15.93	%
	Capital Auto Receivables Asset Trust 2014-1						Bank of America NA
	0.68%, 05/20/2016(b)			220		220	0.57%, 06/15/2016(b)			1,000		997
	Capital Auto Receivables Asset Trust 2014-3						0.59%, 06/15/2017(b)			750		744
	0.51%, 02/21/2017(b)			1,800		1,799	1.25%, 02/14/2017			500		500
	CPS Auto Receivables Trust 2013-A						5.30%, 03/15/2017			3,900		4,131
	1.31%, 06/15/2020(a),(b)			1,094		1,091	Bank of New York Mellon Corp/The
	CPS Auto Receivables Trust 2013-B						2.20%, 05/15/2019			1,000		1,004
	1.82%, 09/15/2020(a),(b)			608		608	BB&T Corp
	CPS Auto Receivables Trust 2013-C						0.94%, 02/01/2019(b)			500		500
	1.64%, 04/16/2018(a)			355		356	Branch Banking & Trust Co
	CPS Auto Receivables Trust 2013-D						0.58%, 05/23/2017(b)			1,750		1,742
	1.54%, 07/16/2018(a),(b)			431		431	0.61%, 09/13/2016(b)			1,300		1,296
	CPS Auto Receivables Trust 2014-C						Capital One Financial Corp
	1.31%, 02/15/2019(a),(b)			910		910	6.15%, 09/01/2016			1,316		1,389
	CPS Auto Receivables Trust 2014-D						Capital One NA/Mclean VA
	1.49%, 04/15/2019(a)			812		816	0.96%, 02/05/2018(b)			1,000		1,000
	CPS Auto Trust						1.65%, 02/05/2018			1,000		992
	1.48%, 03/16/2020(a)			219		219	Citigroup Inc
	Ford Credit Auto Owner Trust/Ford Credit						1.70%, 04/27/2018			1,500		1,490
	2014-RE	V1					6.13%, 05/15/2018			2,000		2,232
	2.26%, 11/15/2025(a),(b)			1,000		1,012	Goldman Sachs Group Inc/The
	Santander Drive Auto Receivables Trust 2014-						1.37%, 11/15/2018(b)			1,250		1,261
	1						1.44%, 04/23/2020(b)			1,500		1,515
	0.56%, 06/15/2017(b)			83		83	2.60%, 04/23/2020			300		298
	0.66%, 06/15/2017(b)			364		364	JP Morgan Chase Bank NA
	Santander Drive Auto Receivables Trust 2014-						5.88%, 06/13/2016			1,250		1,306
	2						6.00%, 10/01/2017			3,000		3,271
	0.54%, 07/17/2017(b)			298		298	KeyBank NA/Cleveland OH
	Santander Drive Auto Receivables Trust 2014-						1.70%, 06/01/2018			500		499
	3						5.45%, 03/03/2016			1,075		1,108
	0.54%, 08/15/2017(b)			408		408	Morgan Stanley
							1.13%, 01/24/2019(b)			2,750		2,749
							1.56%, 04/25/2018(b)			1,500		1,522

See accompanying notes.

217

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
		Principal						Principal
BONDS (continued)		Amount (000's       )Value (000's)			BONDS (continued)			Amount (000's)   Value (000's)
Banks (continued)					Electric - 4.84%
Morgan Stanley (continued)					Dominion Resources Inc/VA
1.88%, 01/05/2018	$	500	$	501	1.40%, 09/15/2017		$	1,000	$	1,000
National City Bank/Cleveland OH					Indiantown Cogeneration LP
0.65%, 06/07/2017(b)		500		498	9.77%, 12/15/2020			413		473
PNC Bank NA					LG&E and KU Energy LLC
1.60%, 06/01/2018		750		749	2.13%, 11/15/2015			1,250		1,255
4.88%, 09/21/2017		1,700		1,815	NextEra Energy Capital Holdings Inc
6.88%, 04/01/2018		250		283	1.59%, 06/01/2017			500		501
PNC Funding Corp					7.30%, 09/01/2067(b)			1,000		1,038
5.63%, 02/01/2017		400		425	Public Service Co of New Mexico
SunTrust Bank/Atlanta GA					7.95%, 05/15/2018			2,250		2,618
0.57%, 08/24/2015(b)		1,000		1,000	San Diego Gas & Electric Co
7.25%, 03/15/2018		1,500		1,706	1.91%, 02/01/2022			300		301
US Bank NA/Cincinnati OH					Southern California Edison Co
0.76%, 10/28/2019(b)		1,250		1,253	1.85%, 02/01/2022			615		614
Wells Fargo Bank NA					Talen Energy Supply LLC
6.00%, 11/15/2017		750		826	5.70%, 10/15/2035			1,400		1,400
		$		40,602	6.50%, 05/01/2018			250		268
					Texas-New Mexico Power Co
Beverages - 0.61%					9.50%, 04/01/2019(a)			300		372
Anheuser-Busch InBev Finance Inc					TransAlta Corp
2.15%, 02/01/2019		500		502	6.65%, 05/15/2018			2,250		2,487
SABMiller Holdings Inc								$		12,327
0.97%, 08/01/2018(a),(b)		500		501
2.45%, 01/15/2017(a)		535		543	Finance - Mortgage Loan/Banker - 4.79%
		$		1,546	Fannie Mae
					1.63%, 01/21/2020			7,000		6,990
Biotechnology - 0.78%					1.75%, 09/12/2019			2,500		2,520
Amgen Inc					Freddie Mac
1.25%, 05/22/2017		1,000		999	1.38%, 05/01/2020			2,750		2,711
2.20%, 05/22/2019		1,000		997				$		12,221
		$		1,996
					Food - 0.85	%
Chemicals - 1.06%					HJ Heinz Co
Airgas Inc					1.60%, 06/30/2017(a),(d)			500		500
1.65%, 02/15/2018		1,200		1,193	2.00%, 07/02/2018(a),(d)			400		400
3.25%, 10/01/2015		1,500		1,506	Ingredion Inc
		$		2,699	3.20%, 11/01/2015			1,250		1,258
Commercial Services - 0.28%								$		2,158
ERAC USA Finance LLC
6.38%, 10/15/2017(a)		645		709	Gas- 0.74	%
					Laclede Group Inc/The
					1.02%, 08/15/2017(b)			1,900		1,897
Computers - 0.94%
Apple Inc					Healthcare - Products - 0.69%
0.90%, 05/12/2017		400		400	Becton Dickinson and Co
1.00%, 05/03/2018		500		495	1.80%, 12/15/2017			500		500
International Business Machines Corp					2.68%, 12/15/2019			500		501
1.95%, 02/12/2019		1,500		1,506	Medtronic Inc
		$		2,401	2.50%, 03/15/2020(a)			750		751
Credit Card Asset Backed Securities - 0.92%								$		1,752
Cabela's Credit Card Master Note Trust
0.54%, 03/16/2020(b)		390		390	Healthcare - Services - 0.60%
0.64%, 07/15/2022(b)		750		749	Anthem Inc
0.67%, 06/15/2020(a),(b)		500		501	5.88%, 06/15/2017			500		543
0.72%, 02/18/2020(a),(b)		710		712	Roche Holdings Inc
					0.61%, 09/30/2019(a),(b)			1,000		999
		$		2,352				$		1,542
Diversified Financial Services - 3.33%					Home Equity Asset Backed Securities - 3.09%
General Electric Capital Corp					ABFC 2005-WMC1 Trust
0.79%, 01/14/2019(b)		1,750		1,751	0.85%, 06/25/2035(b)			448		444
2.30%, 01/14/2019		500		507	ACE Securities Corp Home Equity Loan Trust
5.63%, 09/15/2017		250		272	Series 2005-HE2
Jefferies Group LLC					0.91%, 04/25/2035(b)			280		279
3.88%, 11/09/2015		1,500		1,513	ACE Securities Corp Home Equity Loan Trust
MassMutual Global Funding II					Series 2005-WF1
2.00%, 04/05/2017(a)		550		557	0.87%, 05/25/2035(b)			191		191
2.10%, 08/02/2018(a)		750		759
2.35%, 04/09/2019(a)		250		252	Asset Backed Securities Corp Home Equity
					Loan Trust Series OOMC 2005-HE6
Murray Street Investment Trust I					0.70%, 07/25/2035(b)			547		543
4.65%, 03/09/2017(b)		2,750		2,889
					Bayview Financial Acquisition Trust
		$		8,500	0.82%, 08/28/2044(b)			383		381
					5.66%, 12/28/2036(b)			24		24

See accompanying notes.

218

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
	Principal							Principal
BONDS (continued)	Amount (000's)       Value (000's)				BONDS (continued)		Amount (000's)   Value (000's)
Home Equity Asset Backed Securities (continued)					Iron & Steel - 0.40%
Bear Stearns Asset Backed Securities I Trust					ArcelorMittal
2006-PC1					4.50%, 03/01/2016(b)		$	1,000	$	1,015
0.51%, 12/25/2035(b)	$	395	$	393
Home Equity Asset Trust 2005-4
0.89%, 10/25/2035(b)		970		950	Machinery - Diversified - 0.98%
					John Deere Capital Corp
JP Morgan Mortgage Acquisition Corp 2005-					1.35%, 01/16/2018			1,000		1,003
FLD1
0.92%, 07/25/2035(b)		54		54	2.05%, 03/10/2020			1,500		1,484
JP Morgan Mortgage Acquisition Corp 2005-								$		2,487
OPT1					Manufactured Housing Asset Backed Securities - 0.03%
0.64%, 06/25/2035(b)		243		241	Green Tree Financial Corp
New Century Home Equity Loan Trust 2005-					7.70%, 09/15/2026			65		68
3					Mid-State Trust IV
0.67%, 07/25/2035(b)		299		297	8.33%, 04/01/2030			11		12
RAMP Series 2005-EFC2 Trust								$		80
0.66%, 07/25/2035(b)		30		31
RASC Series 2003-KS10 Trust					Media - 0.35	%
4.47%, 03/25/2032		239		241	Time Warner Cable Inc
RASC Series 2005-AHL2 Trust					8.25%, 04/01/2019			750		882
0.54%, 10/25/2035(b)		219		215
Soundview Home Loan Trust 2005-CTX1					Mining - 0.69%
0.60%, 11/25/2035(b)		475		469	Glencore Finance Canada Ltd
Structured Asset Securities Corp Mortgage					2.70%, 10/25/2017(a),(b)			1,250		1,263
Loan Trust Series 2005-GEL4					Teck Resources Ltd
0.80%, 08/25/2035(b)		194		185	5.38%, 10/01/2015			500		504
Terwin Mortgage Trust 2005-2HE								$		1,767
0.57%, 01/25/2035(a),(b)		15		15
Terwin Mortgage Trust Series TMTS 2005-					Mortgage Backed Securities - 8.08%
14HE					Adjustable Rate Mortgage Trust 2004-2
4.85%, 08/25/2036(b)		203		208	1.33%, 02/25/2035(b)			26		26
Wells Fargo Home Equity Asset-Backed					Alternative Loan Trust 2004-J8
Securities 2004-2 Trust					6.00%, 02/25/2017			27		27
0.61%, 10/25/2034(b)		53		52	Banc of America Alternative Loan Trust 2003-
5.00%, 10/25/2034		2,559		2,553	10
Wells Fargo Home Equity Asset-Backed					5.00%, 12/25/2018			170		173
Securities 2005-2 Trust					Banc of America Funding 2004-1 Trust
0.60%, 11/25/2035(b)		105		105	5.25%, 02/25/2019			34		35
		$		7,871	Banc of America Funding 2004-3 Trust
					4.75%, 09/25/2019			140		142
Home Furnishings - 0.59%					Banc of America Mortgage Trust 2004-8
Samsung Electronics America Inc					5.25%, 10/25/2019			59		61
1.75%, 04/10/2017(a)		1,500		1,510	Banc of America Mortgage Trust 2005-7
					5.00%, 08/25/2020			5		5
Insurance - 5.74%					BCAP LLC 2011-RR11 Trust
Berkshire Hathaway Finance Corp					2.58%, 03/26/2035(a),(b)			273		274
1.60%, 05/15/2017		1,500		1,516	CHL Mortgage Pass-Through Trust 2003-46
Chubb Corp/The					2.47%, 01/19/2034(b)			151		151
6.38%, 03/29/2067(b)		250		262	CHL Mortgage Pass-Through Trust 2004-19
Hartford Financial Services Group Inc/The					5.25%, 10/25/2034			10		10
8.13%, 06/15/2068(b)		500		562	CHL Mortgage Pass-Through Trust 2004-J1
Lincoln National Corp					4.50%, 01/25/2019(b)			30		31
7.00%, 05/17/2066(b)		500		454	CHL Mortgage Pass-Through Trust 2004-J7
MetLife Inc					5.00%, 09/25/2019			127		130
6.82%, 08/15/2018		750		863	Citigroup Mortgage Loan Trust 2009-6
Metropolitan Life Global Funding I					2.68%, 07/25/2036(a),(b)			84		84
1.30%, 04/10/2017(a)		750		752	Credit Suisse First Boston Mortgage Securities
2.30%, 04/10/2019(a)		1,000		1,006	Corp
New York Life Global Funding					1.15%, 05/25/2034(b)			114		111
1.45%, 12/15/2017(a)		1,250		1,249	5.00%, 09/25/2019			27		26
1.95%, 02/11/2020(a)		1,200		1,182	5.00%, 10/25/2019			141		142
2.15%, 06/18/2019(a)		1,150		1,153	Credit Suisse Mortgage Capital Certificates
2.45%, 07/14/2016(a)		1,000		1,019	2.25%, 07/27/2037(a),(b)			163		163
Prudential Covered Trust 2012-1					Freddie Mac REMICS
3.00%, 09/30/2015(a)		2,323		2,335	0.64%, 06/15/2023(b)			3		3
Prudential Financial Inc					Ginnie Mae
8.88%, 06/15/2068(b)		1,950		2,282	0.59%, 07/16/2054(b)			4,641		257
					0.70%, 03/16/2049(b)			6,772		303
		$		14,635	0.86%, 09/16/2055(b)			8,606		542
Internet - 0.39%					0.89%, 03/16/2052(b)			4,744		367
Amazon.com Inc					0.92%, 10/16/2054(b)			5,666		351
2.60%, 12/05/2019		1,000		1,006	0.92%, 10/16/2054(b)			6,238		334
					0.93%, 01/16/2055(b)			9,170		499

See accompanying notes.

219

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)     Value (000's)			BONDS (continued)		Amount (000's)   Value (000's)
Mortgage Backed Securities (continued)					Oil & Gas (continued)
Ginnie Mae (continued)					Shell International Finance BV
0.93%, 06/16/2055(b)	$	9,765	$	588	2.13%, 05/11/2020	$	750	$	748
0.97%, 02/16/2055(b)		9,454		448	Total Capital International SA
1.01%, 10/16/2054(b)		6,585		397	0.85%, 08/10/2018(b)		550		552
1.05%, 01/16/2054(b)		5,162		319	1.55%, 06/28/2017		1,000		1,009
1.14%, 08/16/2042(b)		14,876		1,029			$		8,864
1.15%, 06/16/2045(b)		12,178		868
1.21%, 07/16/2056(b)		995		86	Oil & Gas Services - 0.80%
1.22%, 02/16/2046(b)		9,597		723	Weatherford International Ltd/Bermuda
1.41%, 12/16/2036(b)		4,329		322	5.50%, 02/15/2016		2,000		2,043
4.50%, 08/20/2032		26		26
GSMSC Pass-Through Trust 2009-4R					Other Asset Backed Securities - 5.75%
0.63%, 12/26/2036(a),(b)		485		479	Ameriquest Mortgage Securities Inc Asset-
JP Morgan Mortgage Trust 2004-A3					Backed Pass-Through Ctfs Ser 2004-R11
2.35%, 07/25/2034(b)		80		80	0.79%, 11/25/2034(b)		53		53
JP Morgan Mortgage Trust 2004-S1					Ameriquest Mortgage Securities Inc Asset-
5.00%, 09/25/2034		385		399	Backed Pass-Through Ctfs Ser 2005-R1
JP Morgan Resecuritization Trust Series 2010-					0.86%, 03/25/2035(b)		475		473
4					Carrington Mortgage Loan Trust Series 2005-
2.27%, 10/26/2036(a),(b)		184		184	NC4
MASTR Alternative Loan Trust 2003-9					0.59%, 09/25/2035(b)		155		153
6.50%, 01/25/2019		106		111	Citigroup Mortgage Loan Trust Inc
MASTR Asset Securitization Trust 2004-11					0.62%, 07/25/2035(b)		77		77
5.00%, 12/25/2019		30		30	Credit-Based Asset Servicing and
MASTR Asset Securitization Trust 2004-9					Securitization LLC
5.00%, 09/25/2019		86		88	4.26%, 08/25/2035(b)		30		30
PHH Mortgage Trust Series 2008-CIM1					4.67%, 07/25/2035(b)		358		361
5.22%, 06/25/2038		523		532	CWABS Asset-Backed Certificates Trust
Prime Mortgage Trust 2005-2					2005-3
5.25%, 07/25/2020(b)		210		214	0.63%, 08/25/2035(b)		354		353
Provident Funding Mortgage Loan Trust 2005-					Drug Royalty II LP 2
1					3.48%, 07/15/2023(a),(b)		1,360		1,379
0.48%, 05/25/2035(b)		515		496	FFMLT Trust 2005-FF2
RALI Series 2003-QS23 Trust					0.85%, 03/25/2035(b)		38		38
5.00%, 12/26/2018		346		351	Fieldstone Mortgage Investment Trust Series
RALI Series 2004-QS3 Trust					2005-1
5.00%, 03/25/2019		130		131	1.26%, 03/25/2035(b)		335		335
RBSSP Resecuritization Trust 2009-7					First Franklin Mortgage Loan Trust 2005-
0.58%, 06/26/2037(a),(b)		90		86	FF4
5.00%, 09/26/2036(a),(b)		62		64	0.62%, 05/25/2035(b)		136		136
Sequoia Mortgage Trust 2013-4					Green Tree Home Improvement Loan Trust
1.55%, 04/25/2043(b)		1,797		1,738	7.45%, 09/15/2025		1		1
Sequoia Mortgage Trust 2013-8					JP Morgan Mortgage Acquisition Corp 2005-
2.25%, 06/25/2043(b)		1,177		1,135	OPT2
Springleaf Mortgage Loan Trust 2012-3					0.48%, 12/25/2035(b)		565		557
1.57%, 12/25/2059(a),(b)		1,019		1,021	Mastr Specialized Loan Trust
2.66%, 12/25/2059(a),(b)		500		502	1.44%, 11/25/2034(a),(b)		87		90
3.56%, 12/25/2059(a)		200		202	NYCTL 2014-A Trust
Springleaf Mortgage Loan Trust 2013-1					1.03%, 11/10/2027(a),(c)		179		179
1.27%, 06/25/2058(a),(b)		1,886		1,884	OneMain Financial Issuance Trust 2014-1
2.31%, 06/25/2058(a),(b)		560		562	2.43%, 06/18/2024(a),(b)		900		905
Springleaf Mortgage Loan Trust 2013-2					OneMain Financial Issuance Trust 2014-2
1.78%, 12/25/2065(a)		630		632	2.47%, 09/18/2024(a),(c)		2,000		2,011
3.52%, 12/25/2065(a),(b)		569		580	OneMain Financial Issuance Trust 2015-2
WaMu Mortgage Pass-Through Certificates					2.57%, 07/18/2025(a),(c)		1,500		1,501
Series 2003-S8 Trust					PFS Financing Corp
5.00%, 09/25/2018		38		38	0.74%, 02/15/2018(a),(b)		2,000		1,998
		$		20,592	0.79%, 02/15/2019(a),(b)		750		748
					0.79%, 10/15/2019(a),(b)		500		498
Oil & Gas - 3.48%					0.81%, 04/15/2020(a),(b)		500		500
BP Capital Markets PLC					PFS Tax Lien Trust 2014-1
4.75%, 03/10/2019		1,500		1,641	1.44%, 04/15/2016(a),(b)		685		687
Chevron Corp					RAMP Series 2005-RZ4 Trust
1.37%, 03/02/2018		500		500	0.59%, 11/25/2035 (b)		337		335
1.72%, 06/24/2018		1,300		1,308
					Securitized Asset Backed Receivables LLC
Chevron Phillips Chemical Co LLC / Chevron					Trust 2006-OP1
Phillips Chemical Co LP					0.49%, 10/25/2035(b)		24		23
1.70%, 05/01/2018(a)		750		749
2.45%, 05/01/2020(a)		250		249	Springleaf Funding Trust 2013-A
					2.58%, 09/15/2021(a),(b)		440		441
Phillips 66					Trafigura Securitisation Finance PLC 2014-1
2.95%, 05/01/2017		1,500		1,542	1.14%, 10/15/2021(a),(b),(c)		700		700
Rowan Cos Inc
7.88%, 08/01/2019		500		566

See accompanying notes.

220

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
				Principal						Principal
	BONDS (continued)			Amount (000's)                   Value (000's)			BONDS (continued)		Amount (000's)           Value (000's)
	Other Asset Backed Securities (continued)						Software - 0.91%
	Wachovia Mortgage Loan Trust Series 2005-						Microsoft Corp
	WMC1						1.85%, 02/12/2020		$	1,000	$	1,001
	0.93%, 10/25/2035(b)		$	105	$	104	Oracle Corp
				$		14,666	2.25%, 10/08/2019			750		754
							5.75%, 04/15/2018			500		556
	Pharmaceuticals - 2.96%									$		2,311
	Abbott Laboratories
	2.00%, 03/15/2020			2,000		1,985	Student Loan Asset Backed Securities - 4.02%
	AbbVie Inc						KeyCorp Student Loan Trust 2004-A
	1.20%, 11/06/2015			2,500		2,502	0.58%, 10/28/2041(b)			170		168
	1.80%, 05/14/2018			300		299	KeyCorp Student Loan Trust 2006-A
	2.50%, 05/14/2020			500		495	0.46%, 06/27/2029(b)			126		126
	Actavis Funding SCS						0.58%, 09/27/2035(b)			2,500		2,430
	1.85%, 03/01/2017			500		503	SLC Private Student Loan Trust 2006-A
	2.35%, 03/12/2018			750		754	0.45%, 07/15/2036(b)			962		956
	Merck & Co Inc						SLC Private Student Loan Trust 2010-B
	1.10%, 01/31/2018			1,000		998	3.69%, 07/15/2042(a),(b)			392		408
				$		7,536	SLM Private Credit Student Loan Trust 2002-
							A
	Pipelines - 2.62%						0.84%, 12/16/2030(b)			1,141		1,126
	Buckeye Partners LP						SLM Private Credit Student Loan Trust 2004-
	2.65%, 11/15/2018			965		962	A
	Columbia Pipeline Group Inc						0.49%, 03/16/2020(b)			128		128
	2.45%, 06/01/2018(a)			250		252	0.69%, 06/15/2033(b)			250		240
	3.30%, 06/01/2020(a)			250		251
	DCP Midstream LLC
	5.38%, 10/15/2015 (a)			810		810	SLM Private Credit Student Loan Trust 2004- B
							0.49%, 06/15/2021(b)			974		969
	Florida Gas Transmission Co LLC
	4.00%, 07/15/2015(a)			1,000		1,001
	7.90%, 05/15/2019(a)			830		977	SLM Private Credit Student Loan Trust 2005- B
							0.47%, 03/15/2023(b)			978		973
	Hiland Partners LP / Hiland Partners Finance						0.56%, 12/15/2023(b)			350		341
	Corp
	7.25%, 10/01/2020(a)			1,068		1,153	SLM Private Credit Student Loan Trust 2006-
							A
	TransCanada PipeLines Ltd						0.48%, 12/15/2023(b)			275		272
	6.35%, 05/15/2067(b)			500		475
							SLM Private Education Loan Trust 2013-A
	Williams Partners LP / ACMP Finance Corp						0.79%, 08/15/2022(a),(b)			732		732
	6.13%, 07/15/2022			750		797	SLM Private Education Loan Trust 2013-B
				$		6,678	0.84%, 07/15/2022(a),(b)			560		561
							1.85%, 06/17/2030(a),(b)			500		496
	Real Estate - 0.78%
	Prologis LP						SLM Private Education Loan Trust 2014-A
	7.38%, 10/30/2019			741		877	0.79%, 07/15/2022(a),(b)			316		317
	WEA Finance LLC / Westfield UK & Europe									$		10,243
	Finance PLC
	1.75%, 09/15/2017(a)			600		602	Telecommunications - 2.36%
	2.70%, 09/17/2019(a)			500		501	AT&T Inc
							0.66%, 02/12/2016(b)			1,000		998
				$		1,980	2.45%, 06/30/2020			500		490
	REITS - 2.76	%					3.00%, 06/30/2022			300		290
	Alexandria Real Estate Equities Inc						Cisco Systems Inc
	2.75%, 01/15/2020			1,500		1,485	4.95%, 02/15/2019			1,500		1,656
	BioMed Realty LP						Verizon Communications Inc
	2.63%, 05/01/2019			500		498	2.04%, 09/14/2018(b)			500		517
	3.85%, 04/15/2016			1,000		1,019	3.65%, 09/14/2018			1,500		1,578
	HCP Inc						Vodafone Group PLC
	6.30%, 09/15/2016			1,121		1,183	1.63%, 03/20/2017			500		498
	Health Care REIT Inc									$		6,027
	3.63%, 03/15/2016			750		761	Transportation - 0.30%
	Healthcare Realty Trust Inc						Ryder System Inc
	5.75%, 01/15/2021			510		565	2.45%, 11/15/2018			750		754
	Kimco Realty Corp
	4.30%, 02/01/2018			500		531
	Ventas Realty LP						Trucking & Leasing - 0.20%
	1.55%, 09/26/2016			750		753	Penske Truck Leasing Co Lp / PTL Finance
	Ventas Realty LP / Ventas Capital Corp						Corp
	2.70%, 04/01/2020			250		249	2.50%, 03/15/2016(a)			500		504
				$		7,044
							TOTAL BONDS			$		246,786
	Savings & Loans - 0.00%
	Washington Mutual Bank / Henderson NV						U.S. GOVERNMENT & GOVERNMENT			Principal
	0.00%, 01/15/2013(e)			200		—	AGENCY OBLIGATIONS - 0.21%		Amount (000's)         Value (000's)
							Federal Home Loan Mortgage Corporation (FHLMC) - 0.02	%
							2.27%, 11/01/2021(b)		$	1	$	1
							2.43%, 09/01/2035(b)			49		53

See accompanying notes.

221

					Schedule of Investments
					Short-Term Income Account
					June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)			Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)
(continued)
6.00%, 05/01/2017		$	6	$	6
9.50%, 08/01/2016			1		1
			$		61
Federal National Mortgage Association (FNMA) - 0.18%
1.88%, 04/01/2033(b)			140		147
2.13%, 07/01/2034(b)			60		65
2.16%, 12/01/2032(b)			25		26
2.19%, 08/01/2034(b)			22		23
2.31%, 02/01/2037(b)			69		73
2.37%, 01/01/2035(b)			36		38
2.41%, 11/01/2032(b)			8		9
2.43%, 02/01/2035(b)			8		9
2.63%, 12/01/2033(b)			28		29
4.16%, 11/01/2035(b)			2		2
5.60%, 04/01/2019(b)			1		1
8.00%, 05/01/2027			20		21
8.50%, 11/01/2017			1		1
			$		444
Government National Mortgage Association (GNMA) -
0.01	%
9.00%, 12/15/2020			2		2
9.00%, 04/20/2025			1		1
10.00%, 02/15/2025			1		1
10.00%, 04/15/2025			1		1
10.00%, 06/15/2020			5		5
10.00%, 09/15/2018			2		2
10.00%, 09/15/2018			2		2
10.00%, 05/15/2020			5		5
10.00%, 02/15/2019			16		16
			$		35
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS			$		540
Total Investments			$		254,310
Other Assets in Excess of Liabilities, Net - 0.22%			$		560
TOTAL NET ASSETS - 100.00%			$		254,870

(a)	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 $62,793 or 24.64% of net assets.
(b)	Variable Rate. Rate shown is in effect at June 30, 2015.
(c)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $5,641 or 2.21% of net assets.
(d)	Security purchased on a when-issued basis.
(e)	Non-Income Producing Security

Portfolio Summary (unaudited)
Sector	Percent
Financial	28.54	%
Asset Backed Securities	22.53	%
Mortgage Securities	8.29	%
Consumer, Non-cyclical	7.64	%
Energy	6.90	%
Utilities	5.58	%
Government	4.79	%
Consumer, Cyclical	4.19	%
Communications	3.10	%
Exchange Traded Funds	2.74	%
Basic Materials	2.15	%
Technology	1.85	%
Industrial	1.48	%
Other Assets in Excess of Liabilities, Net	0.22	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

222

Schedule of Investments
SmallCap Blend Account
June 30, 2015 (unaudited)
COMMON STOCKS - 98.37%	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held     Value (000's)
Aerospace & Defense - 2.14%				Commercial Services (continued)
Astronics Corp (a)	24,100	$	1,708	TransUnion (a)	27,910	$	700
Esterline Technologies Corp (a)	12,710		1,212		$		18,728
Spirit AeroSystems Holdings Inc (a)	39,440		2,174
				Computers - 4.31%
	$		5,094	Barracuda Networks Inc (a)	31,620		1,253
				CACI International Inc (a)	34,030		2,753
Apparel - 2.24%
G-III Apparel Group Ltd (a)	45,750		3,219	Manhattan Associates Inc (a)	58,190		3,471
Skechers U.S.A. Inc (a)	19,090		2,096	NetScout Systems Inc (a)	75,740		2,777
	$		5,315		$		10,254
Automobile Parts & Equipment - 1.92%				Diversified Financial Services - 1.35%
American Axle & Manufacturing Holdings Inc	67,570		1,413	Cowen Group Inc (a)	121,200		776
(a)				Evercore Partners Inc - Class A	24,110		1,301
Cooper Tire & Rubber Co	93,104		3,150	WisdomTree Investments Inc	51,120		1,123
	$		4,563		$		3,200
Banks - 8.15%				Electric - 2.11%
Central Pacific Financial Corp	57,490		1,365	8Point3 Energy Partners LP (a)	82,170		1,530
Chemical Financial Corp	13,980		462	Avista Corp	57,346		1,758
First Merchants Corp	12,730		314	NRG Yield Inc	47,080		1,035
First of Long Island Corp/The	13,215		366	Portland General Electric Co	21,270		705
FNB Corp/PA	130,280		1,866		$		5,028
Hanmi Financial Corp	24,328		604
				Electronics - 0.53%
National Penn Bancshares Inc	144,510		1,630	Fitbit Inc (a)	11,450		438
PacWest Bancorp	67,430		3,153	Fluidigm Corp (a)	10,538		255
PrivateBancorp Inc	72,240		2,877	Itron Inc (a)	16,710		575
Renasant Corp	24,990		815
WesBanco Inc	25,890		881		$		1,268
Western Alliance Bancorp (a)	57,790		1,951
				Energy - Alternate Sources - 0.70%
Wilshire Bancorp Inc	38,440		486	Pattern Energy Group Inc	58,947		1,673
Wintrust Financial Corp	48,860		2,608
	$		19,378
				Engineering & Construction - 1.94%
Biotechnology - 3.22%				Dycom Industries Inc (a)	25,950		1,527
Acceleron Pharma Inc (a)	12,290		389	EMCOR Group Inc	64,700		3,091
Aratana Therapeutics Inc (a)	34,171		517		$		4,618
Ardelyx Inc (a)	11,253		180
Avalanche Biotechnologies Inc (a)	2,034		33	Entertainment - 2.63%
Bellicum Pharmaceuticals Inc (a)	8,980		191	Marriott Vacations Worldwide Corp	37,530		3,443
BIND Therapeutics Inc (a)	42,844		240	Vail Resorts Inc	25,710		2,808
BIND Therapeutics Inc - Warrants (a),(b)	1,938		3		$		6,251
Bluebird Bio Inc (a)	2,918		491
				Food - 1.48%
Cambrex Corp (a)	19,820		871	Cal-Maine Foods Inc	30,690		1,602
Cytokinetics Inc - Warrants (a),(b),(c)	12,207		3	SUPERVALU Inc (a)	237,130		1,918
Epizyme Inc (a)	10,750		258		$		3,520
Exact Sciences Corp (a)	30,307		901
Fate Therapeutics Inc (a)	46,420		300	Forest Products & Paper - 0.80%
Genocea Biosciences Inc (a)	26,716		367	Clearwater Paper Corp (a)	33,030		1,893
Insmed Inc (a)	24,870		607
Intercept Pharmaceuticals Inc (a)	1,310		316	Gas - 0.52%
MacroGenics Inc (a)	14,370		546	Southwest Gas Corp	23,080		1,228
NewLink Genetics Corp (a)	8,590		380
Puma Biotechnology Inc (a)	2,390		279
Seattle Genetics Inc (a)	6,550		317	Hand & Machine Tools - 0.75%
Spark Therapeutics Inc (a)	2,280		137	Regal Beloit Corp	24,430		1,773
Sunesis Pharmaceuticals Inc (a)	47,552		143
Versartis Inc (a)	11,427		174
				Healthcare - Products - 2.02%
	$		7,643	EndoChoice Holdings Inc (a)	31,360		513
Building Materials - 1.57%				ICU Medical Inc (a)	19,890		1,902
Boise Cascade Co (a)	56,950		2,089	K2M Group Holdings Inc (a)	50,320		1,209
Eagle Materials Inc	9,440		721	LDR Holding Corp (a)	20,040		867
				STAAR Surgical Co (a)	31,650		306
Universal Forest Products Inc	17,960		934
	$		3,744		$		4,797
Commercial Services - 7.88%				Healthcare - Services - 3.63%
ABM Industries Inc	61,690		2,028	Acadia Healthcare Co Inc (a)	36,470		2,856
Huron Consulting Group Inc (a)	23,250		1,630	Centene Corp (a)	30,350		2,440
Korn/Ferry International	86,270		3,000	HealthSouth Corp	68,650		3,162
Live Nation Entertainment Inc (a)	44,731		1,230	Teladoc Inc (a),(b)	8,870		169
Navigant Consulting Inc (a)	33,270		495		$		8,627
On Assignment Inc (a)	40,690		1,598
(a)				Home Builders - 0.77%
PAREXEL International Corp	41,660		2,679	Installed Building Products Inc (a)	74,575		1,826
Sabre Corp	102,500		2,439
Team Health Holdings Inc (a)	44,840		2,929

See accompanying notes.

223

Schedule of Investments
SmallCap Blend Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held	Value (000			's)
Insurance - 5.53%				REITS (continued)
American Equity Investment Life Holding Co	53,740	$	1,450	LaSalle Hotel Properties	79,280		$	2,811
AmTrust Financial Services Inc	48,910		3,204	QTS Realty Trust Inc	33,490			1,221
First American Financial Corp	76,430		2,844			$		16,405
Primerica Inc	28,350		1,295
Radian Group Inc	136,010		2,552	Retail - 8.10%
Validus Holdings Ltd	40,700		1,790	Caleres Inc	105,870			3,365
				Citi Trends Inc (a)	15,890			385
	$		13,135	Flex Pharma Inc (a)	9,480			163
Internet - 2.28%				Freshpet Inc (a)	22,500			418
CDW Corp/DE	90,713		3,110	Kirkland's Inc	42,951			1,197
GoDaddy Inc (a)	12,330		348	Office Depot Inc (a)	401,636			3,478
Intralinks Holdings Inc (a)	71,800		855	Penske Automotive Group Inc	42,635			2,222
MaxPoint Interactive Inc (a)	69,240		559	Red Robin Gourmet Burgers Inc (a)	23,554			2,021
Rubicon Project Inc/The (a)	36,082		540	Rite Aid Corp (a)	372,470			3,110
	$		5,412	Wendy's Co/The	257,280			2,902
						$		19,261
Investment Companies - 0.73%
Apollo Investment Corp	244,910		1,734	Savings & Loans - 0.91%
				Berkshire Hills Bancorp Inc	16,530			471
				Oritani Financial Corp	22,390			359
Machinery - Diversified - 0.00%
Gerber Scientific Inc (a),(b),(c)	1,974		—	Provident Financial Services Inc	69,840			1,326
						$		2,156
				Semiconductors - 2.13%
Miscellaneous Manufacturing - 0.86%				Entegris Inc (a)	89,110			1,298
AO Smith Corp	28,580		2,057	Micrel Inc	49,520			688
				Qorvo Inc (a)	38,475			3,089
Office Furnishings - 0.73%						$		5,075
Interface Inc	68,940		1,727
				Software - 6.23%
				2U Inc (a)	52,540			1,691
Oil & Gas - 2.43%				Acxiom Corp (a)	66,620			1,171
Carrizo Oil & Gas Inc (a)	23,770		1,170	Apigee Corp (a)	29,980			298
Magnum Hunter Resources Corp - Warrants	12,227		—	Appfolio Inc (a)	18,390			259
(a),(b),(c)				Aspen Technology Inc (a)	74,360			3,387
Northern Oil and Gas Inc (a)	112,940		765	Black Knight Financial Services Inc (a)	36,940			1,140
PDC Energy Inc (a)	17,230		924	Blackbaud Inc	47,040			2,679
RSP Permian Inc (a)	55,990		1,574	BroadSoft Inc (a)	12,940			447
Sanchez Energy Corp (a)	52,760		517	MINDBODY Inc (a)	39,950			553
Whiting Petroleum Corp (a)	24,611		827	SYNNEX Corp	32,970			2,413
	$		5,777	Workiva Inc (a)	55,860			773
Packaging & Containers - 0.36%						$		14,811
Graphic Packaging Holding Co	62,150		866	Telecommunications - 2.41%
				ARRIS Group Inc (a)	52,729			1,614
Pharmaceuticals - 5.07%				Leap Wireless International Inc - Rights	1,375			3
Array BioPharma Inc (a)	60,430		436	(a),(b),(c)
Cerulean Pharma Inc (a)	47,323		218	Plantronics Inc	48,480			2,730
Clovis Oncology Inc (a)	6,770		595	West Corp	45,560			1,371
Concert Pharmaceuticals Inc (a)	25,560		380			$		5,718
DexCom Inc (a)	18,770		1,501
FibroGen Inc (a)	9,530		224	Transportation - 2.63%
				ArcBest Corp	31,200			992
Furiex Pharmaceuticals Inc - Rights (a),(b),(c)	104		1	Atlas Air Worldwide Holdings Inc (a)	38,340			2,107
Nektar Therapeutics (a)	36,430		456
				Matson Inc	57,310			2,410
Nevro Corp (a)	15,580		837	Navigator Holdings Ltd (a)	39,020			739
Orexigen Therapeutics Inc (a)	66,540		329
PRA Health Sciences Inc (a)	63,880		2,321			$		6,248
Prestige Brands Holdings Inc (a)	66,169		3,060	Trucking & Leasing - 0.26%
ProQR Therapeutics NV (a)	9,912		165	Greenbrier Cos Inc/The	13,240			620
Proteon Therapeutics Inc (a)	21,640		386
Revance Therapeutics Inc (a)	9,470		303	TOTAL COMMON STOCKS		$		233,816
SCYNEXIS Inc (a)	24,310		214	INVESTMENT COMPANIES - 1.88%	Shares Held	Value (000			's)
Vanda Pharmaceuticals Inc (a)	27,011		343
Zafgen Inc (a)	7,860		272	Publicly Traded Investment Fund - 1.88%
	$		12,041	BlackRock Liquidity Funds FedFund Portfolio	4,466,989			4,467
Publicly Traded Investment Fund - 0.15%				TOTAL INVESTMENT COMPANIES		$		4,467
THL Credit Inc	30,490		352	Total Investments		$		238,283
				Liabilities in Excess of Other Assets, Net - (0.25)%		$		(594	)
REITS - 6.90%				TOTAL NET ASSETS - 100.00%		$		237,689
CubeSmart	52,790		1,222
First Industrial Realty Trust Inc	131,880		2,470
Highwoods Properties Inc	109,210		4,363	(a) Non-Income Producing Security
Hudson Pacific Properties Inc	91,070		2,584
Kilroy Realty Corp	25,820		1,734

See accompanying notes.

224

Schedule of Investments
SmallCapBlendAccount
June 30, 2015 (unaudited)

(b)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $179 or 0.08% of net assets.
(c)	Security is Illiquid. At the end of the period, the value of these securities totaled $7 or 0.00% of net assets.

Portfolio Summary (unaudited)
Sector		Percent
Financial		23.72	%
Consumer, Non-cyclical		23.30	%
Consumer, Cyclical		16.39	%
Technology		12.67	%
Industrial		11.04	%
Communications		4.69	%
Energy		3.13	%
Utilities		2.63	%
Exchange Traded Funds		1.88	%
Basic Materials		0.80	%
Liabilities in Excess of Other Assets, Net		(0.25	)%
TOTAL NET ASSETS		100.00	%
Futures Contracts
										Unrealized
Type	Long/Short	Contracts		Notional Value			Fair Value	Appreciation/(Depreciation)
Russell 2000 Mini; September 2015	Long	4		$	506	$	500		$	(6	)
Total								$		(6	)
Amounts in thousands except contracts

See accompanying notes.

225

Glossary to the Schedule of Investments
June 30, 2015 (unaudited)

Currency Abbreviations
USD/$	United States Dollar

See accompanying notes.

226

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227

					FINANCIAL HIGHLIGHTS
			PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
					(unaudited)
Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):
			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total  From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
BALANCED ACCOUNT
Class 1 shares
2015	(c)	$	19.26	$	0.17		$	0.20		$	0.37		$–		$–		$–
2014			18.01		0.30			1.28			1.58		(0.33	)	–		(0.33	)
2013			15.35		0.27			2.69			2.96		(0.30	)	–		(0.30	)
2012			13.86		0.30			1.50			1.80		(0.31	)	–		(0.31	)
2011			13.62		0.27			0.29			0.56		(0.32	)	–		(0.32	)
2010			12.33		0.29			1.35			1.64		(0.35	)	–		(0.35	)
BOND & MORTGAGE SECURITIES ACCOUNT
Class 1 shares
2015	(c)		11.46		0.16			(0.14	)		0.02		–		–		–
2014			11.24		0.31			0.28			0.59		(0.37	)	–		(0.37	)
2013			11.74		0.32			(0.43	)		(0.11	)	(0.39	)	–		(0.39	)
2012			11.35		0.36			0.48			0.84		(0.45	)	–		(0.45	)
2011			10.61		0.44			0.31			0.75		(0.01	)	–		(0.01	)
2010			10.04		0.47			0.69			1.16		(0.59	)	–		(0.59	)
Class 2 shares
2015	(f)		11.62		0.05			(0.19	)		(0.14	)	–		–		–
BOND MARKET INDEX ACCOUNT
Class 1 shares
2015	(c)		10.34		0.09			(0.12	)		(0.03	)	–		–		–
2014			9.88		0.17			0.40			0.57		(0.11	)	–		(0.11	)
2013			10.21		0.13			(0.39	)		(0.26	)	(0.07	)	–		(0.07	)
2012	(g)		10.00		0.08			0.13			0.21		–		–		–
DIVERSIFIED BALANCED ACCOUNT
Class 2 shares
2015	(c)		14.39		(0.02	)		0.15			0.13		–		–		–
2014			13.66		0.16			0.85			1.01		(0.13	)	(0.15	)	(0.28	)
2013			12.28		0.15			1.43			1.58		(0.04	)	(0.16	)	(0.20	)
2012			11.30		0.06			1.03			1.09		(0.11	)	–		(0.11	)
2011			11.02		0.21			0.19			0.40		(0.12	)	–		(0.12	)
2010			10.00		0.35			0.67			1.02		–		–		–

See accompanying notes.

228

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
										(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses		Ratio of Gross
	Value, End	Total			Period (in	to Average Net		Expenses to Average		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		Net Assets		to Average Net Assets		Turnover Rate
$	19.63	1.92	%(d)	$	48,464	0.65	%(e)	–%		1.72	%(e)	125.5	%(e)
	19.26	8.81			50,588	0.65		–		1.61		119.8
	18.01	19.48			51,633	0.66		–		1.65		147.3
	15.35	13.05			49,151	0.65		–		1.99		154.7
	13.86	4.05			50,180	0.66		–		1.98		178.7
	13.62	13.62			56,574	0.66		–		2.27		209.0
	11.48	0.17	(d)		312,466	0.45	(e)	–		2.78	(e)	192.7	(e)
	11.46	5.24			321,735	0.45		–		2.74		205.6
	11.24	(0.86	)		316,177	0.45		–		2.79		204.8
	11.74	7.54			342,051	0.45		–		3.12		218.2
	11.35	7.07			323,866	0.45		–		3.95		252.1
	10.61	11.65			340,735	0.45		–		4.44		297.5
	11.48	(1.20	) (d)		10	0.70	(e)	–		2.58	(e)	192.7	(e)
	10.31	(0.29	) (d)		1,898,561	0.25	(e)	–		1.73	(e)	152.4	(e)
	10.34	5.75			1,734,803	0.26		–		1.68		195.7
	9.88	(2.56	)		1,264,213	0.26		–		1.26		225.8
	10.21	2.10	(d)		753,130	0.26	(e)	–		1.27	(e)	160.6	(e)
	14.52	0.90	(d)		1,040,339	0.30 (e)	,(h)	0.30 (e)	,(h),(i)	(0.30	) (e)	10.3	(e)
	14.39	7.41			1,011,106	0.30	(h)	0.30 (h)	,(i)	1.11		9.0
	13.66	12.95			856,784	0.30	(h)	0.30 (h)	,(i)	1.16		10.1
	12.28	9.71			581,734	0.30	(h)	0.30 (h)	,(i)	0.52		56.6
	11.30	3.61			331,823	0.31	(h)	0.31 (h)	,(i)	1.86		17.9
	11.02	10.20			169,656	0.31	(h)	0.31 (h)	,(i)	3.34		20.2

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Period from May 1, 2015 date operations commenced, through June 30, 2015
(g)	Period from May 15, 2012 date operations commenced, through December 31, 2012
(h)	Does not include expenses of the investment companies in which the Account invests.
(i)	Excludes expense reimbursement from Manager.

See accompanying notes.

229

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized			Dividends		Distributions		Total
			Value,		Investment			and Unrealized		Total From	from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on		Investment	Investment		Realized		and
			Period		(Loss)(a)			Investments		Operations	Income		Gains		Distributions
DIVERSIFIED BALANCED MANAGED VOLATILITY ACCOUNT
Class 2 shares
2015	(c)	$	10.88	($	0.02	)	$	0.10	$	0.08	$–		$–		$–
2014			10.18		0.27			0.43		0.70	–		–		–
2013	(h)		10.00		0.13			0.05		0.18	–		–		–
DIVERSIFIED GROWTH ACCOUNT
Class 2 shares
2015	(c)		15.40		(0.02	)		0.22		0.20	–		–		–
2014			14.60		0.19			0.94		1.13	(0.14	)	(0.19	)	(0.33	)
2013			12.54		0.20			2.04		2.24	(0.06	)	(0.12	)	(0.18	)
2012			11.33		0.09			1.22		1.31	(0.10	)	–		(0.10	)
2011			11.17		0.18			0.07		0.25	(0.09	)	–		(0.09	)
2010			10.00		0.34			0.83		1.17	–		–		–
DIVERSIFIED GROWTH MANAGED VOLATILITY ACCOUNT
Class 2 shares
2015	(c)		10.99		(0.02	)		0.14		0.12	–		–		–
2014			10.27		0.31			0.41		0.72	–		–		–
2013	(h)		10.00		0.26			0.01		0.27	–		–		–
DIVERSIFIED INCOME ACCOUNT
Class 2 shares
2015	(c)		12.03		(0.02	)		0.08		0.06	–		–		–
2014			11.38		0.12			0.66		0.78	(0.06	)	(0.07	)	(0.13	)
2013			10.54		0.11			0.75		0.86	(0.01	)	(0.01	)	(0.02	)
2012	(j)		10.00		0.06			0.48		0.54	–		–		–

See accompanying notes.

230

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
										(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses		Ratio of Gross
	Value, End	Total			Period (in	to Average Net		Expenses to Average		Ratio of Net Investment		Portfolio
	of Period	Return(b)			thousands)	Assets		Net Assets		Income to Average Net Assets		Turnover Rate
$	10.96	0.74	%(d)	$	122,660	0.31%(e),(f),(g)		–%		(0.31	)%(e)	8.9	%(e)
	10.88	6.89			84,527	0.31 (f)	,(g)	–		2.54		8.1
	10.18	1.80	(d)		887	0.31 (e)	,(f),(g)	–		7.97	(e)	6.6	(e)
	15.60	1.30	(d)		3,098,724	0.30 (e)	,(g)	0.30 (e)	,(g),(i)	(0.30	) (e)	8.0	(e)
	15.40	7.83			2,880,722	0.30	(g)	0.30 (g)	,(i)	1.25		7.1
	14.60	17.95			2,202,857	0.30	(g)	0.30 (g)	,(i)	1.49		7.7
	12.54	11.63			1,218,171	0.30	(g)	0.30 (g)	,(i)	0.76		42.6
	11.33	2.26			747,602	0.30	(g)	0.30 (g)	,(i)	1.58		15.6
	11.17	11.70			323,925	0.31	(g)	0.31 (g)	,(i)	3.21		13.6
	11.11	1.09	(d)		214,386	0.30 (e)	,(f),(g)	–		(0.30	) (e)	7.8	(e)
	10.99	7.06			151,672	0.31 (f)	,(g)	–		2.92		8.0
	10.27	2.70	(d)		3,988	0.31 (e)	,(f),(g)	–		15.10	(e)	127.3	(e)
	12.09	0.50	(d)		179,221	0.30 (e)	,(g)	0.30 (e)	,(g),(i)	(0.30	) (e)	18.6	(e)
	12.03	6.89			168,562	0.31	(g)	0.31 (g)	,(i)	1.06		18.7
	11.38	8.14			112,037	0.31	(g)	0.31 (g)	,(i)	0.96		27.0
	10.54	5.40	(d)		54,787	0.31 (e)	,(g)	0.32 (e)	,(g),(i)	0.87	(e)	12.1	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Reflects Manager's contractual expense limit.
(g)	Does not include expenses of the investment companies in which the Account invests.
(h)	Period from October 31, 2013 date operations commenced, through December 31, 2013
(i)	Excludes expense reimbursement from Manager.
(j)	Period from May 15, 2012 date operations commenced, through December 31, 2012

See accompanying notes.

231

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

					Net		Net Realized					Dividends		Total
			Net Asset Value,		Investment		and Unrealized			Total From		from Net		Dividends			Net Asset
			Beginning of		Income		Gain (Loss) on			Investment		Investment		and			Value, End
			Period		(Loss)(a)		Investments			Operations		Income		Distributions			of Period
DIVERSIFIED INTERNATIONAL ACCOUNT
Class 1 shares
2015	(c)	$	14.08	$	0.19	$	0.65		$	0.84		$–		$–		$	14.92
2014			14.87		0.24		(0.70	)		(0.46	)	(0.33	)	(0.33	)		14.08
2013			12.89		0.24		2.09			2.33		(0.35	)	(0.35	)		14.87
2012			11.12		0.27		1.76			2.03		(0.26	)	(0.26	)		12.89
2011			12.54		0.27		(1.67	)		(1.40	)	(0.02	)	(0.02	)		11.12
2010			11.24		0.17		1.31			1.48		(0.18	)	(0.18	)		12.54
Class 2 shares
2015	(c)		14.19		0.18		0.64			0.82		–		–			15.01
2014			14.97		0.21		(0.70	)		(0.49	)	(0.29	)	(0.29	)		14.19
2013			12.96		0.22		2.10			2.32		(0.31	)	(0.31	)		14.97
2012			11.18		0.23		1.76			1.99		(0.21	)	(0.21	)		12.96
2011			12.63		0.23		(1.66	)		(1.43	)	(0.02	)	(0.02	)		11.18
2010			11.32		0.14		1.32			1.46		(0.15	)	(0.15	)		12.63
EQUITY INCOME ACCOUNT
Class 1 shares
2015	(c)		23.12		0.29		(0.36	)		(0.07	)	–		–			23.05
2014			21.00		0.57		2.09			2.66		(0.54	)	(0.54	)		23.12
2013			17.03		0.54		4.04			4.58		(0.61	)	(0.61	)		21.00
2012			15.53		0.54		1.47			2.01		(0.51	)	(0.51	)		17.03
2011			14.80		0.50		0.30			0.80		(0.07	)	(0.07	)		15.53
2010			13.15		0.45		1.66			2.11		(0.46	)	(0.46	)		14.80
Class 2 shares
2015	(c)		22.96		0.26		(0.35	)		(0.09	)	–		–			22.87
2014			20.87		0.51		2.07			2.58		(0.49	)	(0.49	)		22.96
2013			16.92		0.49		4.02			4.51		(0.56	)	(0.56	)		20.87
2012			15.43		0.49		1.46			1.95		(0.46	)	(0.46	)		16.92
2011			14.74		0.45		0.31			0.76		(0.07	)	(0.07	)		15.43
2010			13.10		0.40		1.66			2.06		(0.42	)	(0.42	)		14.74

See accompanying notes.

232

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
						(unaudited)
			Net Assets, End of	Ratio of Expenses
Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
5.97	%(d)	$	397,313	0.87	%(e)	2.58	%(e)	47.2	%(e)
(3.21	)		429,194	0.86		1.64		62.1
18.40			501,094	0.87		1.78		79.5
18.44			464,751	0.87		2.23		76.0
(11.17	)		428,532	0.89		2.17		68.5
13.18			532,545	0.89		1.47		110.0	(f)
5.78	(d)		1,434	1.12	(e)	2.37	(e)	47.2	(e)
(3.41	)		1,266	1.11		1.38		62.1
18.18			1,458	1.12		1.61		79.5
18.01			1,643	1.12		1.95		76.0
(11.36	)		1,952	1.14		1.91		68.5
12.91			2,466	1.14		1.27		110.0	(f)
(0.30	) (d)		565,439	0.49	(e)	2.55	(e)	10.1	(e)
12.80			599,407	0.48		2.57		11.6
27.30			630,542	0.48		2.83		18.0
13.01			578,099	0.49		3.26		20.8
5.44			624,366	0.48		3.28		19.9
16.18			538,727	0.51		3.25		23.2
(0.39	) (d)		25,181	0.74	(e)	2.30	(e)	10.1	(e)
12.46			25,491	0.73		2.32		11.6
27.02			24,810	0.73		2.58		18.0
12.72			22,844	0.74		3.01		20.8
5.17			25,498	0.73		3.00		19.9
15.88			29,323	0.76		2.97		23.2

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Portfolio turnover rate excludes approximately $612,000 from portfolio realignment from the acquisition of International SmallCap Account.

See accompanying notes.

233

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions
GOVERNMENT & HIGH QUALITY BOND ACCOUNT
Class 1 shares
2015	(c)	$	10.44	$	0.13	($	0.08	)	$	0.05		$–		$–		$–
2014			10.33		0.27		0.25			0.52		(0.41	)	–		(0.41	)
2013			10.87		0.27		(0.39	)		(0.12	)	(0.42	)	–		(0.42	)
2012			10.90		0.33		0.09			0.42		(0.45	)	–		(0.45	)
2011			10.29		0.36		0.28			0.64		(0.02	)	(0.01	)	(0.03	)
2010			10.07		0.38		0.20			0.58		(0.36	)	–		(0.36	)
Class 2 shares
2015	(c)		10.45		0.12		(0.08	)		0.04		–		–		–
2014			10.34		0.24		0.25			0.49		(0.38	)	–		(0.38	)
2013			10.88		0.25		(0.39	)		(0.14	)	(0.40	)	–		(0.40	)
2012			10.90		0.30		0.10			0.40		(0.42	)	–		(0.42	)
2011			10.32		0.34		0.27			0.61		(0.02	)	(0.01	)	(0.03	)
2010			10.09		0.36		0.21			0.57		(0.34	)	–		(0.34	)
INCOME ACCOUNT
Class 1 shares
2015	(c)		10.78		0.20		(0.13	)		0.07		–		–		–
2014			10.68		0.43		0.16			0.59		(0.49	)	–		(0.49	)
2013			11.22		0.46		(0.43	)		0.03		(0.57	)	–		(0.57	)
2012			10.71		0.53		0.48			1.01		(0.50	)	–		(0.50	)
2011			10.12		0.56		0.07			0.63		(0.04	)	–		(0.04	)
2010			9.97		0.60		0.25			0.85		(0.70	)	–		(0.70	)
Class 2 shares
2015	(c)		10.73		0.18		(0.12	)		0.06		–		–		–
2014			10.63		0.40		0.16			0.56		(0.46	)	–		(0.46	)
2013			11.17		0.43		(0.43	)		–		(0.54	)	–		(0.54	)
2012			10.66		0.50		0.47			0.97		(0.46	)	–		(0.46	)
2011			10.09		0.53		0.08			0.61		(0.04	)	–		(0.04	)
2010			9.95		0.58		0.23			0.81		(0.67	)	–		(0.67	)

See accompanying notes.

234

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	10.49	0.48	%(d)	$	302,172	0.51	%(e)	2.57	%(e)	30.4	%(e)
	10.44	5.08			314,509	0.51		2.56		19.1
	10.33	(1.03	)		379,351	0.51		2.58		45.3
	10.87	3.91			432,172	0.51		2.98		41.4
	10.90	6.23			453,864	0.51		3.42		83.8
	10.29	5.85			489,048	0.50		3.64		79.1	(f)
	10.49	0.38	(d)		1,804	0.76	(e)	2.32	(e)	30.4	(e)
	10.45	4.75			916	0.76		2.31		19.1
	10.34	(1.30	)		931	0.76		2.33		45.3
	10.88	3.70			1,143	0.76		2.73		41.4
	10.90	5.90			1,215	0.76		3.17		83.8
	10.32	5.65			1,457	0.75		3.45		79.1	(f)
	10.85	0.65	(d)		272,759	0.50	(e)	3.66	(e)	17.6	(e)
	10.78	5.55			275,597	0.51		3.95		16.6
	10.68	0.40			269,330	0.51		4.22		12.8
	11.22	9.57			292,756	0.51		4.78		14.7
	10.71	6.25			239,939	0.50		5.36		17.8
	10.12	8.65			225,114	0.50		5.81		17.0
	10.79	0.56	(d)		2,686	0.75	(e)	3.41	(e)	17.6	(e)
	10.73	5.26			3,036	0.76		3.71		16.6
	10.63	0.10			3,390	0.76		3.97		12.8
	11.17	9.28			3,875	0.76		4.55		14.7
	10.66	6.05			4,360	0.75		5.11		17.8
	10.09	8.26			5,135	0.75		5.58		17.0

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Portfolio turnover rate excludes approximately $53,358,000 from portfolio realignment from the acquisition of Government & High Quality Bond Account.

See accompanying notes.

235

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
INTERNATIONAL EMERGING MARKETS ACCOUNT
Class 1 shares
2015	(c)	$	15.21	$	0.11		$	0.44		$	0.55		$–		$–		$–
2014			15.94		0.20			(0.78	)		(0.58	)	(0.15	)	–		(0.15	)
2013			17.14		0.19			(1.07	)		(0.88	)	(0.32	)	–		(0.32	)
2012			14.38		0.22			2.75			2.97		(0.21	)	–		(0.21	)
2011			17.51		0.23			(3.35	)		(3.12	)	(0.01	)	–		(0.01	)
2010			14.86		0.13			2.63			2.76		(0.11	)	–		(0.11	)
Class 2 shares
2015	(f)		16.74		0.10			(1.09	)		(0.99	)	–		–		–
LARGECAP GROWTH ACCOUNT
Class 1 shares
2015	(c)		24.60		0.02			1.45			1.47		–		–		–
2014			22.26		0.03			2.44			2.47		(0.13	)	–		(0.13	)
2013			16.87		0.07			5.61			5.68		(0.29	)	–		(0.29	)
2012			14.48		0.12			2.32			2.44		(0.05	)	–		(0.05	)
2011			15.12		0.05			(0.69	)		(0.64	)	–		–		–
2010			12.78		0.01			2.34			2.35		(0.01	)	–		(0.01	)
Class 2 shares
2015	(c)		24.53		(0.01	)		1.44			1.43		–		–		–
2014			22.20		(0.03	)		2.44			2.41		(0.08	)	–		(0.08	)
2013			16.83		0.02			5.59			5.61		(0.24	)	–		(0.24	)
2012			14.43		0.08			2.32			2.40		–		–		–
2011			15.11		0.01			(0.69	)		(0.68	)	–		–		–
2010			12.80		(0.03	)		2.34			2.31		–		–		–
LARGECAP GROWTH ACCOUNT I
Class 1 shares
2015	(c)		28.70		0.02			1.46			1.48		–		–		–
2014			32.58		0.03			2.46			2.49		(0.04	)	(6.33	)	(6.37	)
2013			24.77		0.04			8.75			8.79		(0.11	)	(0.87	)	(0.98	)
2012			21.30		0.10			3.39			3.49		(0.02	)	–		(0.02	)
2011			21.37		0.02			(0.09	)		(0.07	)	–		–		–
2010			17.89		0.01			3.50			3.51		(0.03	)	–		(0.03	)
Class 2 shares
2015	(f)		30.30		–			(0.13	)		(0.13	)	–		–		–

See accompanying notes.

236

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	15.76	3.62	%(d)	$	104,423	1.38	%(e)	1.34	%(e)	98.0	%(e)
	15.21	(3.75	)		103,091	1.38		1.28		106.9
	15.94	(5.03	)		113,305	1.39		1.19		118.2
	17.14	20.80			152,545	1.34		1.40		97.4
	14.38	(17.84	)		143,811	1.40		1.37		86.8
	17.51	18.67			193,048	1.39		0.88		102.3
	15.75	(5.91	) (d)		14	1.63	(e)	3.74	(e)	98.0	(e)
	26.07	5.98	(d)		124,283	0.69	(e)	0.17	(e)	52.5	(e)
	24.60	11.12			123,091	0.69		0.13		67.2
	22.26	33.91			100,140	0.69		0.37		70.1
	16.87	16.85			210,351	0.69		0.73		62.6
	14.48	(4.23	)		181,559	0.69		0.31		56.6
	15.12	18.38			207,114	0.69		0.04		61.1
	25.96	5.83	(d)		991	0.94	(e)	(0.08	) (e)	52.5	(e)
	24.53	10.85			661	0.94		(0.11	)	67.2
	22.20	33.64	(g)		712	0.94		0.10		70.1
	16.83	16.56	(g)		604	0.94		0.47		62.6
	14.43	(4.50	)		561	0.94		0.05		56.6
	15.11	18.05			691	0.94		(0.20	)	61.1
	30.18	5.16	(d)		245,733	0.76 (e)	,(h)	0.13	(e)	42.5	(e)
	28.70	8.61			239,629	0.76	(h)	0.11		38.9
	32.58	36.14			260,034	0.75	(h)	0.12		36.9
	24.77	16.38			240,585	0.76	(h)	0.42		36.9
	21.30	(0.33	)		228,749	0.76	(h)	0.07		46.1
	21.37	19.61			251,943	0.76	(h)	0.07		54.0
	30.17	(0.43	) (d)		10	1.01 (e)	,(h)	(0.03	) (e)	42.5	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Period from May 1, 2015 date operations commenced, through June 30, 2015
(g)	Total return is calculated using the traded net asset value which may differ from the reported net asset value.
(h)	Reflects Manager's contractual expense limit.

See accompanying notes.

237

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions
LARGECAP S&P 500 INDEX ACCOUNT
Class 1 shares
2015	(c)	$	14.63	$	0.13	$	0.03		$	0.16		$–		$–		$–
2014			13.38		0.24		1.51			1.75		(0.18	)	(0.32	)	(0.50	)
2013			10.34		0.22		3.07			3.29		(0.15	)	(0.10	)	(0.25	)
2012			9.06		0.20		1.20			1.40		(0.11	)	(0.01	)	(0.12	)
2011			8.91		0.16		(0.01	)		0.15		–		–		–
2010			7.88		0.15		1.00			1.15		(0.12	)	–		(0.12	)
Class 2 shares
2015	(f)		15.07		0.05		(0.33	)		(0.28	)	–		–		–
LARGECAP S&P 500 MANAGED VOLATILITY INDEX ACCOUNT
Class 1 shares
2015	(c)		11.22		0.08		(0.01	)		0.07		–		–		–
2014			10.46		0.14		1.09			1.23		(0.08	)	(0.39	)	(0.47	)
2013	(h)		10.00		0.03		0.45			0.48		(0.02	)	–		(0.02	)
LARGECAP VALUE ACCOUNT
Class 1 shares
2015	(c)		33.80		0.28		(0.29	)		(0.01	)	–		–		–
2014			36.13		0.51		3.19			3.70		(0.80	)	(5.23	)	(6.03	)
2013			28.33		0.53		8.11			8.64		(0.84	)	–		(0.84	)
2012			24.20		0.56		3.92			4.48		(0.35	)	–		(0.35	)
2011			23.92		0.33		(0.05	)		0.28		–		–		–
2010			21.34		0.30		2.68			2.98		(0.40	)	–		(0.40	)
Class 2 shares
2015	(f)		34.24		0.12		(0.58	)		(0.46	)	–		–		–

See accompanying notes.

238

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	14.79	1.09	%(d)	$	1,970,281	0.25	%(e)	1.76	%(e)	3.2	%(e)
	14.63	13.29			1,863,035	0.25		1.74		2.8
	13.38	32.04			1,490,352	0.25		1.81		7.4
	10.34	15.50			916,593	0.26		2.02		3.3
	9.06	1.73			593,337	0.26		1.80		7.9
	8.91	14.67			352,580	0.27		1.83		21.1
	14.79	(1.86	) (d)		10	0.50	(e)	1.88	(e)	3.2	(e)
	11.29	0.62	(d)		137,927	0.47 (e)	,(g)	1.33	(e)	5.1	(e)
	11.22	11.77			97,236	0.49	(g)	1.29		24.6
	10.46	4.85	(d)		7,339	0.49 (e)	,(g)	1.82	(e)	74.7	(e)
	33.79	(0.03	) (d)		161,824	0.61	(e)	1.65	(e)	78.5	(e)
	33.80	11.17			170,673	0.61		1.45		104.3
	36.13	30.83			167,702	0.61		1.64		140.8
	28.33	18.58			222,357	0.61		2.09		115.0
	24.20	1.17			199,660	0.61		1.37		113.9
	23.92	14.08			164,949	0.61		1.38		214.6
	33.78	(1.34	) (d)		10	0.86	(e)	2.20	(e)	78.5	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Period from May 1, 2015 date operations commenced, through June 30, 2015
(g)	Reflects Manager's contractual expense limit.
(h)	Period from October 31, 2013 date operations commenced, through December 31, 2013

See accompanying notes.

239

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized			Dividends		Distributions		Total
			Value,		Investment		and Unrealized		Total From	from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on		Investment	Investment		Realized		and
			Period		(Loss)(a)		Investments		Operations	Income		Gains		Distributions
MIDCAP ACCOUNT
Class 1 shares
2015	(c)	$	60.79	$	0.09	$	2.98	$	3.07	$–		$–		$–
2014			59.37		0.36		6.96		7.32	(0.32	)	(5.58	)	(5.90	)
2013			47.20		0.28		15.31		15.59	(0.82	)	(2.60	)	(3.42	)
2012			40.51		0.46		7.35		7.81	(0.40	)	(0.72	)	(1.12	)
2011			37.83		0.23		2.92		3.15	–		(0.47	)	(0.47	)
2010			31.25		0.46		7.00		7.46	(0.88	)	–		(0.88	)
Class 2 shares
2015	(c)		60.54		0.01		2.96		2.97	–		–		–
2014			59.16		0.21		6.93		7.14	(0.18	)	(5.58	)	(5.76	)
2013			47.06		0.15		15.25		15.40	(0.70	)	(2.60	)	(3.30	)
2012			40.39		0.35		7.33		7.68	(0.29	)	(0.72	)	(1.01	)
2011			37.82		0.13		2.91		3.04	–		(0.47	)	(0.47	)
2010			31.23		0.35		7.03		7.38	(0.79	)	–		(0.79	)
MONEY MARKET ACCOUNT
Class 1 shares
2015	(c)		1.00		–		–		–	–		–		–
2014			1.00		–		–		–	–		–		–
2013			1.00		–		–		–	–		–		–
2012			1.00		–		–		–	–		–		–
2011			1.00		–		–		–	–		–		–
2010			1.00		–		–		–	–		–		–
Class 2 shares
2015	(c)		1.00		–		–		–	–		–		–
2014			1.00		–		–		–	–		–		–
2013			1.00		–		–		–	–		–		–
2012			1.00		–		–		–	–		–		–
2011			1.00		–		–		–	–		–		–
2010			1.00		–		–		–	–		–		–

See accompanying notes.

240

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
										(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses		Ratio of Gross
	Value, End	Total			Period (in	to Average Net		Expenses to Average		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		Net Assets		to Average Net Assets		Turnover Rate
$	63.86	5.05	%(d)	$	674,277	0.52	%(e)	–%		0.30%	(e)	25.3	%(e)
	60.79	12.99			676,836	0.53		–		0.60		21.6
	59.37	33.93			649,893	0.53		–		0.52		12.4
	47.20	19.44			560,842	0.55		–		1.03		21.5
	40.51	8.29			531,255	0.55		–		0.57		28.9
	37.83	24.10			551,589	0.57		–		1.37		20.9
	63.51	4.91	(d)		16,211	0.77	(e)	–		0.05	(e)	25.3	(e)
	60.54	12.70			15,960	0.78		–		0.35		21.6
	59.16	33.58			15,105	0.78		–		0.27		12.4
	47.06	19.16			12,179	0.80		–		0.79		21.5
	40.39	8.00			11,226	0.80		–		0.32		28.9
	37.82	23.83			11,327	0.82		–		1.05		20.9
	1.00	0.00	(d)		269,377	0.18	(e)	0.46 (e)	,(f)	0.00	(e)	N/A(e)
	1.00	0.00			278,903	0.16		0.46	(f)	0.00		N/A
	1.00	0.00			283,108	0.19		0.46	(f)	0.00		N/A
	1.00	0.00			303,903	0.27		0.46	(f)	0.00		N/A
	1.00	0.00			322,844	0.26		0.45	(f)	0.00		N/A
	1.00	0.00			314,976	0.32		0.45	(f)	0.00		N/A
	1.00	0.00	(d)		2,129	0.18	(e)	0.71 (e)	,(f)	0.00	(e)	N/A(e)
	1.00	0.00			934	0.16		0.71	(f)	0.00		N/A
	1.00	0.00			959	0.20		0.71	(f)	0.00		N/A
	1.00	0.00			1,253	0.27		0.71	(f)	0.00		N/A
	1.00	0.00			1,777	0.26		0.70	(f)	0.00		N/A
	1.00	0.00			2,478	0.32		0.70	(f)	0.00		N/A

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Excludes expense reimbursement from Manager and/or Distributor.

See accompanying notes.

241

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions
PRINCIPAL CAPITAL APPRECIATION ACCOUNT
Class 1 shares
2015	(c)	$	22.31	$	0.14	$	0.48		$	0.62		$–		$–		$–
2014			24.45		0.24		2.52			2.76		(0.81	)	(4.09	)	(4.90	)
2013			23.75		0.30		6.63			6.93		(1.86	)	(4.37	)	(6.23	)
2012			21.36		0.35		2.58			2.93		(0.26	)	(0.28	)	(0.54	)
2011			21.47		0.24		(0.21	)		0.03		–		(0.14	)	(0.14	)
2010			19.23		0.35		2.59			2.94		(0.32	)	(0.38	)	(0.70	)
Class 2 shares
2015	(c)		22.11		0.11		0.48			0.59		–		–		–
2014			24.27		0.18		2.50			2.68		(0.75	)	(4.09	)	(4.84	)
2013			23.62		0.21		6.60			6.81		(1.79	)	(4.37	)	(6.16	)
2012			21.23		0.29		2.58			2.87		(0.20	)	(0.28	)	(0.48	)
2011			21.40		0.18		(0.21	)		(0.03	)	–		(0.14	)	(0.14	)
2010			19.17		0.31		2.57			2.88		(0.27	)	(0.38	)	(0.65	)
PRINCIPAL LIFETIME 2010 ACCOUNT
Class 1 shares
2015	(c)		12.60		0.03		0.17			0.20		–		–		–
2014			12.29		0.25		0.34			0.59		(0.28	)	–		(0.28	)
2013			11.36		0.27		0.94			1.21		(0.28	)	–		(0.28	)
2012			10.36		0.26		0.95			1.21		(0.21	)	–		(0.21	)
2011			10.49		0.19		(0.03	)		0.16		(0.29	)	–		(0.29	)
2010			9.63		0.30		0.99			1.29		(0.43	)	–		(0.43	)
PRINCIPAL LIFETIME 2020 ACCOUNT
Class 1 shares
2015	(c)		13.77		0.02		0.23			0.25		–		–		–
2014			13.62		0.33		0.44			0.77		(0.33	)	(0.29	)	(0.62	)
2013			12.00		0.30		1.59			1.89		(0.27	)	–		(0.27	)
2012			10.64		0.26		1.30			1.56		(0.20	)	–		(0.20	)
2011			11.02		0.19		(0.29	)		(0.10	)	(0.28	)	–		(0.28	)
2010			9.97		0.28		1.16			1.44		(0.39	)	–		(0.39	)
Class 2 shares
2015	(h)		14.26		–		(0.25	)		(0.25	)	–		–		–

See accompanying notes.

242

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment		Portfolio
	of Period	Return(b)			thousands)	Assets		Income to Average Net Assets		Turnover Rate
$	22.93	2.78	%(d)	$	167,604	0.64	%(e)	1.21	%(e)	18.1%(e),(f)
	22.31	12.45			33,190	0.66		1.02		8.6
	24.45	32.65			32,077	0.65		1.18		6.7
	23.75	13.83			145,393	0.64		1.51		6.2
	21.36	0.13			142,828	0.64		1.09		10.3
	21.47	15.40			151,592	0.64		1.78		13.7
	22.70	2.67	(d)		7,651	0.89	(e)	0.94	(e)	18.1 (e)	,(f)
	22.11	12.19			6,891	0.91		0.77		8.6
	24.27	32.27			6,362	0.90		0.85		6.7
	23.62	13.57			5,238	0.89		1.26		6.2
	21.23	(0.15	)		5,472	0.89		0.83		10.3
	21.40	15.11			6,822	0.89		1.57		13.7
	12.80	1.59	(d)		45,743	0.04 (e)	,(g)	0.39	(e)	36.6	(e)
	12.60	4.81			47,312	0.04	(g)	2.02		41.3
	12.29	10.81			48,775	0.04	(g)	2.25		36.5
	11.36	11.79			47,361	0.06	(g)	2.39		28.3
	10.36	1.44			47,435	0.04	(g)	1.79		24.3
	10.49	13.93			48,831	0.04	(g)	3.01		42.1
	14.02	1.82	(d)		205,266	0.03 (e)	,(g)	0.35	(e)	41.4	(e)
	13.77	5.75			211,470	0.03	(g)	2.40		31.9
	13.62	15.97			227,985	0.03	(g)	2.35		49.6
	12.00	14.76			208,355	0.04	(g)	2.28		24.4
	10.64	(1.07	)		192,409	0.04	(g)	1.74		8.9
	11.02	15.05			201,014	0.04	(g)	2.73		37.6
	14.01	(1.75	) (d)		10	0.28 (e)	,(g)	0.15	(e)	41.4	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Portfolio turnover rate excludes approximately $1,237,000 of purchases from portfolio realignment from the acquisition of LargeCap Blend Account II.
(g)	Does not include expenses of the investment companies in which the Account invests.
(h)	Period from May 1, 2015 date operations commenced, through June 30, 2015

See accompanying notes.

243

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions
PRINCIPAL LIFETIME 2030 ACCOUNT
Class 1 shares
2015	(c)	$	12.34	$	0.02	$	0.26		$	0.28		$–		$–		$–
2014			14.05		0.36		0.45			0.81		(0.31	)	(2.21	)	(2.52	)
2013			12.10		0.32		1.95			2.27		(0.25	)	(0.07	)	(0.32	)
2012			10.64		0.25		1.40			1.65		(0.19	)	–		(0.19	)
2011			11.09		0.19		(0.42	)		(0.23	)	(0.22	)	–		(0.22	)
2010			9.85		0.24		1.24			1.48		(0.24	)	–		(0.24	)
Class 2 shares
2015	(g)		12.85		–		(0.23	)		(0.23	)	–		–		–
PRINCIPAL LIFETIME 2040 ACCOUNT
Class 1 shares
2015	(c)		14.50		0.01		0.38			0.39		–		–		–
2014			14.94		0.42		0.49			0.91		(0.31	)	(1.04	)	(1.35	)
2013			12.39		0.35		2.41			2.76		(0.21	)	–		(0.21	)
2012			10.78		0.23		1.56			1.79		(0.18	)	–		(0.18	)
2011			11.31		0.19		(0.54	)		(0.35	)	(0.18	)	–		(0.18	)
2010			10.00		0.21		1.33			1.54		(0.23	)	–		(0.23	)
Class 2 shares
2015	(g)		15.14		–		(0.26	)		(0.26	)	–		–		–
PRINCIPAL LIFETIME 2050 ACCOUNT
Class 1 shares
2015	(c)		14.18		0.01		0.41			0.42		–		–		–
2014			14.96		0.40		0.50			0.90		(0.34	)	(1.34	)	(1.68	)
2013			12.28		0.34		2.55			2.89		(0.21	)	–		(0.21	)
2012			10.64		0.24		1.57			1.81		(0.17	)	–		(0.17	)
2011			11.24		0.18		(0.61	)		(0.43	)	(0.17	)	–		(0.17	)
2010			9.89		0.18		1.39			1.57		(0.22	)	–		(0.22	)
Class 2 shares
2015	(g)		14.84		–		(0.25	)		(0.25	)	–		–		–

See accompanying notes.

244

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	12.62	2.27	%(d)	$	118,711	0.04%(e),(f)		0.32	%(e)	53.9	%(e)
	12.34	6.06			116,965	0.04	(f)	2.67		23.9
	14.05	18.96			108,794	0.04	(f)	2.43		58.6
	12.10	15.58			92,672	0.05	(f)	2.20		18.5
	10.64	(2.22	)		79,646	0.04	(f)	1.70		13.2
	11.09	15.40			82,436	0.04	(f)	2.33		36.2
	12.62	(1.79	) (d)		10	0.29 (e)	,(f)	0.02	(e)	53.9	(e)
	14.89	2.69	(d)		46,440	0.04 (e)	,(f)	0.20	(e)	31.2	(e)
	14.50	6.21			42,304	0.05	(f)	2.83		21.1
	14.94	22.42			36,934	0.05	(f)	2.55		67.2
	12.39	16.71			25,647	0.08	(f)	1.98		30.1
	10.78	(3.18	)		22,110	0.05	(f)	1.67		13.7
	11.31	15.81			21,199	0.06	(f)	2.06		41.6
	14.88	(1.72	) (d)		10	0.29 (e)	,(f)	(0.12	) (e)	31.2	(e)
	14.60	2.96	(d)		23,042	0.05 (e)	,(f)	0.20	(e)	43.2	(e)
	14.18	6.21			21,796	0.06	(f)	2.70		28.5
	14.96	23.72			22,002	0.06	(f)	2.48		68.0
	12.28	17.07			16,352	0.11	(f)	2.01		17.7
	10.64	(3.94	)		12,822	0.07	(f)	1.58		19.7
	11.24	16.21			13,127	0.08	(f)	1.80		45.1
	14.59	(1.68	) (d)		32	0.30 (e)	,(f)	(0.12	) (e)	43.2	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Account invests.
(g)	Period from May 1, 2015 date operations commenced, through June 30, 2015

See accompanying notes.

245

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions
PRINCIPAL LIFETIME 2060 ACCOUNT
Class 1 shares
2015	(c)	$	12.19	$	0.01	$	0.35		$	0.36		$–		$–		$–
2014			11.58		0.39		0.25			0.64		(0.01	)	(0.02	)	(0.03	)
2013	(h)		10.00		0.38		1.20			1.58		–		–		–
PRINCIPAL LIFETIME STRATEGIC INCOME ACCOUNT
Class 1 shares
2015	(c)		11.51		0.03		0.09			0.12		–		–		–
2014			11.29		0.23		0.29			0.52		(0.30	)	–		(0.30	)
2013			11.04		0.26		0.29			0.55		(0.30	)	–		(0.30	)
2012			10.25		0.30		0.68			0.98		(0.19	)	–		(0.19	)
2011			10.22		0.20		0.16			0.36		(0.33	)	–		(0.33	)
2010			9.66		0.35		0.70			1.05		(0.49	)	–		(0.49	)
REAL ESTATE SECURITIES ACCOUNT
Class 1 shares
2015	(c)		22.33		0.12		(1.34	)		(1.22	)	–		–		–
2014			17.08		0.29		5.28			5.57		(0.32	)	–		(0.32	)
2013			16.63		0.35		0.33			0.68		(0.23	)	–		(0.23	)
2012			14.39		0.21		2.26			2.47		(0.23	)	–		(0.23	)
2011			13.21		0.10		1.08			1.18		–		–		–
2010			10.83		0.26		2.49			2.75		(0.37	)	–		(0.37	)
Class 2 shares
2015	(c)		22.45		0.12		(1.37	)		(1.25	)	–		–		–
2014			17.18		0.27		5.27			5.54		(0.27	)	–		(0.27	)
2013			16.72		0.30		0.34			0.64		(0.18	)	–		(0.18	)
2012			14.46		0.17		2.26			2.43		(0.17	)	–		(0.17	)
2011			13.30		0.06		1.10			1.16		–		–		–
2010			10.91		0.23		2.50			2.73		(0.34	)	–		(0.34	)

See accompanying notes.

246

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment		Portfolio
	of Period	Return(b)			thousands)	Assets		Income to Average Net Assets		Turnover Rate
$	12.55	2.95	%(d)	$	1,945	0.13%(e),(f),(g)		0.13	%(e)	29.2	%(e)
	12.19	5.58			825	0.13 (f)	,(g)	3.28		43.2
	11.58	15.80	(d)		28	0.13 (e)	,(f),(g)	5.31	(e)	79.4	(e)
	11.63	1.04	(d)		28,845	0.05 (e)	,(g)	0.49	(e)	37.7	(e)
	11.51	4.57			30,016	0.05	(g)	2.01		39.8
	11.29	5.11			31,164	0.05	(g)	2.35		25.1
	11.04	9.65			32,756	0.07	(g)	2.79		34.0
	10.25	3.52			29,574	0.05	(g)	1.96		19.3
	10.22	11.24			28,399	0.05	(g)	3.51		40.5
	21.11	(5.46	) (d)		151,309	0.89	(e)	1.02	(e)	22.9	(e)
	22.33	32.82			166,701	0.89		1.48		15.7
	17.08	4.10			128,601	0.89		1.96		22.1
	16.63	17.17			133,069	0.90		1.33		44.1
	14.39	8.93			140,316	0.90		0.71		22.4
	13.21	25.70			140,922	0.89		2.16		48.0
	21.20	(5.57	) (d)		1,498	1.14	(e)	1.08	(e)	22.9	(e)
	22.45	32.44			492	1.14		1.37		15.7
	17.18	3.87			271	1.14		1.72		22.1
	16.72	16.86			257	1.15		1.08		44.1
	14.46	8.72			287	1.15		0.42		22.4
	13.30	25.29			442	1.14		1.92		48.0

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Reflects Manager's contractual expense limit.
(g)	Does not include expenses of the investment companies in which the Account invests.
(h)	Period from May 1, 2013 date operations commenced, through December 31, 2013

See accompanying notes.

247

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized			Dividends			Distributions		Total
			Value,		Investment			and Unrealized		Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on		Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments		Operations		Income		Gains		Distributions
SAM BALANCED PORTFOLIO
Class 1 shares
2015	(c)	$	16.51	$	0.01		$	0.27	$	0.28	$–			$–		$–
2014			18.53		0.47			0.73		1.20	(0.52		)	(2.70	)	(3.22	)
2013			16.33		0.47			2.37		2.84	(0.43		)	(0.21	)	(0.64	)
2012			14.76		0.41			1.46		1.87	(0.11		)	(0.19	)	(0.30	)
2011			15.02		0.10			0.06		0.16	(0.42		)	–		(0.42	)
2010			13.73		0.42			1.38		1.80	(0.51		)	–		(0.51	)
Class 2 shares
2015	(c)		16.37		(0.01	)		0.27		0.26	–			–		–
2014			18.39		0.43			0.73		1.16	(0.48		)	(2.70	)	(3.18	)
2013			16.22		0.41			2.35		2.76	(0.38		)	(0.21	)	(0.59	)
2012			14.66		0.36			1.46		1.82	(0.07		)	(0.19	)	(0.26	)
2011			14.92		0.06			0.06		0.12	(0.38		)	–		(0.38	)
2010			13.64		0.36			1.40		1.76	(0.48		)	–		(0.48	)
SAM CONSERVATIVE BALANCED PORTFOLIO
Class 1 shares
2015	(c)		12.60		0.02			0.16		0.18	–			–		–
2014			13.39		0.41			0.40		0.81	(0.42		)	(1.18	)	(1.60	)
2013			12.49		0.40			1.00		1.40	(0.37		)	(0.13	)	(0.50	)
2012			11.47		0.37			0.90		1.27	(0.10		)	(0.15	)	(0.25	)
2011			11.68		0.10			0.17		0.27	(0.37		)	(0.11	)	(0.48	)
2010			10.94		0.40			0.84		1.24	(0.50		)	–		(0.50	)
Class 2 shares
2015	(c)		12.48		–			0.16		0.16	–			–		–
2014			13.28		0.38			0.38		0.76	(0.38		)	(1.18	)	(1.56	)
2013			12.39		0.36			1.00		1.36	(0.34		)	(0.13	)	(0.47	)
2012			11.38		0.33			0.90		1.23	(0.07		)	(0.15	)	(0.22	)
2011			11.60		0.07			0.17		0.24	(0.35		)	(0.11	)	(0.46	)
2010			10.85		0.35			0.88		1.23	(0.48		)	–		(0.48	)

See accompanying notes.

248

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	16.79	1.70	%(d)	$	797,052	0.23%(e),(f)		0.12	%(e)	14.8	%(e)
	16.51	6.82			826,908	0.23	(f)	2.64		16.4
	18.53	17.68			913,823	0.23	(f)	2.68		46.7
	16.33	12.75			812,380	0.23	(f)	2.60		9.1
	14.76	0.99			781,873	0.23	(f)	0.68		14.2
	15.02	13.61			828,276	0.24	(f)	2.97		36.3
	16.63	1.59	(d)		99,972	0.48 (e)	,(f)	(0.13	) (e)	14.8	(e)
	16.37	6.59			99,852	0.48	(f)	2.44		16.4
	18.39	17.32			102,716	0.48	(f)	2.37		46.7
	16.22	12.47			95,208	0.48	(f)	2.32		9.1
	14.66	0.73			94,487	0.48	(f)	0.43		14.2
	14.92	13.34			107,086	0.49	(f)	2.59		36.3
	12.78	1.43	(d)		203,342	0.23 (e)	,(f)	0.29	(e)	14.6	(e)
	12.60	6.22			206,621	0.23	(f)	3.10		21.2
	13.39	11.53			212,247	0.23	(f)	3.10		35.6
	12.49	11.19			190,310	0.24	(f)	3.07		15.7
	11.47	2.29			177,476	0.24	(f)	0.86		20.8
	11.68	11.84			178,249	0.24	(f)	3.56		34.4
	12.64	1.28	(d)		18,218	0.48 (e)	,(f)	0.04	(e)	14.6	(e)
	12.48	5.92			16,731	0.48	(f)	2.87		21.2
	13.28	11.25			16,140	0.48	(f)	2.77		35.6
	12.39	10.91			15,911	0.49	(f)	2.73		15.7
	11.38	1.97			15,465	0.49	(f)	0.60		20.8
	11.60	11.73			15,761	0.49	(f)	3.18		34.4

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Portfolio invests.

See accompanying notes.

249

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset	Net			Net Realized					Dividends		Distributions		Total
			Value,	Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of	Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period	(Loss)(a)			Investments			Operations		Income		Gains		Distributions
SAM CONSERVATIVE GROWTH PORTFOLIO
Class 1 shares
2015	(c)	$	19.02	$–		$	0.38		$	0.38		$–		$–		$–
2014			20.60	0.48			0.97			1.45		(0.39	)	(2.64	)	(3.03	)
2013			17.04	0.40			3.50			3.90		(0.34	)	–		(0.34	)
2012			14.99	0.33			1.79			2.12		(0.07	)	–		(0.07	)
2011			15.36	0.07			(0.13	)		(0.06	)	(0.31	)	–		(0.31	)
2010			13.80	0.31			1.72			2.03		(0.47	)	–		(0.47	)
Class 2 shares
2015	(c)		18.82	(0.03	)		0.39			0.36		–		–		–
2014			20.42	0.42			0.97			1.39		(0.35	)	(2.64	)	(2.99	)
2013			16.89	0.34			3.49			3.83		(0.30	)	–		(0.30	)
2012			14.87	0.28			1.77			2.05		(0.03	)	–		(0.03	)
2011			15.23	0.03			(0.11	)		(0.08	)	(0.28	)	–		(0.28	)
2010			13.69	0.27			1.71			1.98		(0.44	)	–		(0.44	)
SAM FLEXIBLE INCOME PORTFOLIO
Class 1 shares
2015	(c)		13.22	0.05			0.07			0.12		–		–		–
2014			13.72	0.49			0.33			0.82		(0.52	)	(0.80	)	(1.32	)
2013			13.38	0.49			0.51			1.00		(0.48	)	(0.18	)	(0.66	)
2012			12.42	0.48			0.83			1.31		(0.15	)	(0.20	)	(0.35	)
2011			12.50	0.15			0.28			0.43		(0.49	)	(0.02	)	(0.51	)
2010			11.95	0.51			0.69			1.20		(0.65	)	–		(0.65	)
Class 2 shares
2015	(c)		13.12	0.03			0.07			0.10		–		–		–
2014			13.62	0.45			0.33			0.78		(0.48	)	(0.80	)	(1.28	)
2013			13.29	0.46			0.50			0.96		(0.45	)	(0.18	)	(0.63	)
2012			12.34	0.44			0.83			1.27		(0.12	)	(0.20	)	(0.32	)
2011			12.42	0.12			0.28			0.40		(0.46	)	(0.02	)	(0.48	)
2010			11.87	0.45			0.72			1.17		(0.62	)	–		(0.62	)

See accompanying notes.

250

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	19.40	2.00	%(d)	$	201,691	0.23%(e),(f)		(0.05	)%(e)	25.1	%(e)
	19.02	7.43			198,465	0.23	(f)	2.40		19.4
	20.60	23.07			179,850	0.23	(f)	2.10		48.5
	17.04	14.18			143,547	0.24	(f)	2.00		12.5
	14.99	(0.45	)		132,387	0.24	(f)	0.45		24.2
	15.36	15.22			140,207	0.24	(f)	2.21		42.2
	19.18	1.91	(d)		106,371	0.48 (e)	,(f)	(0.30	) (e)	25.1	(e)
	18.82	7.14			102,757	0.48	(f)	2.11		19.4
	20.42	22.82			99,013	0.48	(f)	1.82		48.5
	16.89	13.81			84,306	0.49	(f)	1.76		12.5
	14.87	(0.63	)		78,247	0.49	(f)	0.20		24.2
	15.23	14.92			84,941	0.49	(f)	1.92		42.2
	13.34	0.91	(d)		212,836	0.23 (e)	,(f)	0.69	(e)	15.0	(e)
	13.22	6.03			215,309	0.23	(f)	3.55		18.8
	13.72	7.75			214,572	0.23	(f)	3.57		29.7
	13.38	10.64			215,628	0.24	(f)	3.69		11.7
	12.42	3.39			187,458	0.24	(f)	1.22		20.6
	12.50	10.51			183,764	0.24	(f)	4.22		31.5
	13.22	0.76	(d)		21,430	0.48 (e)	,(f)	0.44	(e)	15.0	(e)
	13.12	5.80			19,836	0.48	(f)	3.27		18.8
	13.62	7.46			19,464	0.48	(f)	3.36		29.7
	13.29	10.34			19,667	0.49	(f)	3.41		11.7
	12.34	3.13			18,382	0.49	(f)	0.96		20.6
	12.42	10.26			20,147	0.49	(f)	3.70		31.5

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Portfolio invests.

See accompanying notes.

251

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
SAM STRATEGIC GROWTH PORTFOLIO
Class 1 shares
2015	(c)	$	21.00	($	0.01	)	$	0.45		$	0.44		$–		$–		$–
2014			23.55		0.56			1.33			1.89		(0.38	)	(4.06	)	(4.44	)
2013			18.74		0.40			4.70			5.10		(0.29	)	–		(0.29	)
2012			16.26		0.29			2.23			2.52		(0.04	)	–		(0.04	)
2011			16.82		0.04			(0.34	)		(0.30	)	(0.26	)	–		(0.26	)
2010			14.83		0.28			2.09			2.37		(0.38	)	–		(0.38	)
Class 2 shares
2015	(c)		20.80		(0.03	)		0.44			0.41		–		–		–
2014			23.38		0.49			1.32			1.81		(0.33	)	(4.06	)	(4.39	)
2013			18.61		0.33			4.68			5.01		(0.24	)	–		(0.24	)
2012			16.15		0.24			2.22			2.46		–		–		–
2011			16.71		–			(0.34	)		(0.34	)	(0.22	)	–		(0.22	)
2010			14.73		0.23			2.10			2.33		(0.35	)	–		(0.35	)
SHORT-TERM INCOME ACCOUNT
Class 1 shares
2015	(c)		2.59		0.02			–			0.02		–		–		–
2014			2.59		0.05			(0.01	)		0.04		(0.04	)	–		(0.04	)
2013			2.61		0.04			(0.01	)		0.03		(0.05	)	–		(0.05	)
2012			2.54		0.05			0.08			0.13		(0.06	)	–		(0.06	)
2011			2.51		0.06			(0.03	)		0.03		–		–		–
2010			2.46		0.06			0.04			0.10		(0.05	)	–		(0.05	)
Class 2 shares
2015	(c)		2.58		0.02			–			0.02		–		–		–
2014			2.59		0.04			(0.01	)		0.03		(0.04	)	–		(0.04	)
2013			2.60		0.04			(0.01	)		0.03		(0.04	)	–		(0.04	)
2012			2.53		0.04			0.08			0.12		(0.05	)	–		(0.05	)
2011			2.51		0.05			(0.03	)		0.02		–		–		–
2010			2.45		0.06			0.05			0.11		(0.05	)	–		(0.05	)

See accompanying notes.

252

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	21.44	2.10	%(d)	$	145,079	0.23%(e),(f)		(0.06	)%(e)	40.4	%(e)
	21.00	8.68			138,863	0.23	(f)	2.50		20.4
	23.55	27.40			121,049	0.23	(f)	1.89		62.5
	18.74	15.52			90,348	0.24	(f)	1.61		13.9
	16.26	(1.90	)		83,738	0.24	(f)	0.25		23.3
	16.82	16.40			81,821	0.24	(f)	1.82		51.7
	21.21	1.97	(d)		99,597	0.48 (e)	,(f)	(0.31	) (e)	40.4	(e)
	20.80	8.35			96,446	0.48	(f)	2.21		20.4
	23.38	27.09			87,689	0.48	(f)	1.57		62.5
	18.61	15.23			71,997	0.49	(f)	1.36		13.9
	16.15	(2.12	)		64,907	0.49	(f)	(0.01	)	23.3
	16.71	16.18			69,749	0.49	(f)	1.53		51.7
	2.61	0.77	(d)		253,265	0.48 (e)	,(g)	1.52	(e)	67.7	(e)
	2.59	1.73			267,674	0.49	(g)	1.74		54.3
	2.59	1.14			256,561	0.48	(g)	1.65		54.7
	2.61	5.00			262,427	0.49	(g)	1.95		59.1
	2.54	1.37			228,351	0.49	(g)	2.35		55.1
	2.51	4.20			224,344	0.50	(g)	2.49		85.4	(h)
	2.60	0.78	(d)		1,605	0.73 (e)	,(g)	1.20	(e)	67.7	(e)
	2.58	1.02			913	0.74	(g)	1.49		54.3
	2.59	1.25			838	0.73	(g)	1.40		54.7
	2.60	4.67			1,269	0.74	(g)	1.72		59.1
	2.53	0.95			1,516	0.74	(g)	2.11		55.1
	2.51	4.37			1,901	0.75	(g)	2.45		85.4	(h)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Portfolio invests.
(g)	Reflects Manager's contractual expense limit.
(h)	Portfolio turnover rate excludes approximately $3,528,000 from portfolio realignment from the acquisition of Short-Term Bond Account.

See accompanying notes.

253

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
SMALLCAP BLEND ACCOUNT
Class 1 shares
2015	(c)	$	13.99	$	0.02		$	1.17		$	1.19		$–		$–		$–
2014			13.79		0.02			0.64			0.66		(0.05	)	(0.41	)	(0.46	)
2013			9.36		0.04			4.43			4.47		(0.04	)	–		(0.04	)
2012			8.16		0.07			1.13			1.20		–		–		–
2011			8.31		(0.01	)		(0.11	)		(0.12	)	(0.03	)	–		(0.03	)
2010			6.72		0.03			1.59			1.62		(0.03	)	–		(0.03	)
Class 2 shares
2015	(f)		14.49		0.01			0.67			0.68		–		–		–

See accompanying notes.

254

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	15.18	8.51	%(d)	$	232,906	0.83	%(e)	0.30	%(e)	84.2	%(e)
	13.99	4.89			64,682	0.87		0.16		67.0
	13.79	47.81			64,785	0.87		0.38		78.1
	9.36	14.71			47,469	0.89		0.76		94.5
	8.16	(1.47	)		47,155	0.88		(0.09	)	69.1
	8.31	24.26			57,287	0.88		0.38		69.0
	15.17	4.69	(d)		4,783	1.08	(e)	0.23	(e)	84.2	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Period from February 17, 2015 date operations commenced, through June 30, 2015

See accompanying notes.

255

SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)

As a shareholder of Principal Variable Contracts Funds, Inc. you 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 Variable Contracts Funds, Inc. and to compare these costs with the ongoing costs of investing in other mutual funds. As a shareholder of Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Income Account, Principal LifeTime 2010 Account, Principal LifeTime 2020 Account, Principal LifeTime 2030 Account, Principal LifeTime 2040 Account, Principal LifeTime 2050 Account, Principal LifeTime 2060 Account, Principal LifeTime Strategic Income Account, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, or SAM Strategic Growth Portfolio, your fund will indirectly bear its pro rata share of the expenses incurred by the investment companies in which the fund invests. These expenses are not included in the fund’s annualized expense ratio used to calculate the expenses paid in this example. If they were, the expenses paid would be higher. Expenses shown below and on the following pages do not account for fees, expenses and charges of any variable insurance contract or retirement plan. If these fees had been reflected, expenses would have been higher.

The example is based on an investment of $1,000 invested at the beginning of the year and held for the entire year (January 1, 2015 to June 30, 2015).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each account’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the account’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 Variable Contracts 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. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015		Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)		Expense Ratio
Balanced Account Class 1
Actual	$	1,000.00	$	1,019.21	$	3.25		0.65	%
Hypothetical		1,000.00		1,021.57		3.26		0.65
Bond & Mortgage Securities Account Class 1
Actual		1,000.00		1,001.75		2.23		0.45
Hypothetical		1,000.00		1,022.56		2.26		0.45
Bond & Mortgage Securities Account Class 2
Actual		1,000.00		987.95		1.14	(b)	0.70
Hypothetical		1,000.00		1,021.32		3.51		0.70
Bond Market Index Account Class 1
Actual		1,000.00		997.10		1.24		0.25
Hypothetical		1,000.00		1,023.55		1.25		0.25
Diversified Balanced Account Class 2
Actual		1,000.00		1,009.03		1.49		0.30
Hypothetical		1,000.00		1,023.31		1.51		0.30
Diversified Balanced Managed Volatility Account Class 2
Actual		1,000.00		1,007.35		1.54		0.31
Hypothetical		1,000.00		1,023.26		1.56		0.31
Diversified Growth Account Class 2
Actual		1,000.00		1,012.99		1.50		0.30
Hypothetical		1,000.00		1,023.31		1.51		0.30

256

		SHAREHOLDER EXPENSE EXAMPLE
		PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
		(unaudited)
						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015		Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)		Expense Ratio
Diversified Growth Managed Volatility Account Class 2
Actual	$	1,000.00	$	1,010.92	$	1.50		0.30	%
Hypothetical		1,000.00		1,023.31		1.51		0.30
Diversified Income Account Class 2
Actual		1,000.00		1,004.99		1.49		0.30
Hypothetical		1,000.00		1,023.31		1.51		0.30
Diversified International Account Class 1
Actual		1,000.00		1,059.66		4.44		0.87
Hypothetical		1,000.00		1,020.48		4.36		0.87
Diversified International Account Class 2
Actual		1,000.00		1,057.79		5.71		1.12
Hypothetical		1,000.00		1,019.24		5.61		1.12
Equity Income Account Class 1
Actual		1,000.00		996.97		2.43		0.49
Hypothetical		1,000.00		1,022.36		2.46		0.49
Equity Income Account Class 2
Actual		1,000.00		996.08		3.66		0.74
Hypothetical		1,000.00		1,021.12		3.71		0.74
Government & High Quality Bond Account Class 1
Actual		1,000.00		1,004.79		2.54		0.51
Hypothetical		1,000.00		1,022.27		2.56		0.51
Government & High Quality Bond Account Class 2
Actual		1,000.00		1,003.83		3.78		0.76
Hypothetical		1,000.00		1,021.03		3.81		0.76
Income Account Class 1
Actual		1,000.00		1,006.49		2.49		0.50
Hypothetical		1,000.00		1,022.32		2.51		0.50
Income Account Class 2
Actual		1,000.00		1,005.59		3.73		0.75
Hypothetical		1,000.00		1,021.08		3.76		0.75
International Emerging Markets Account Class 1
Actual		1,000.00		1,036.16		6.97		1.38
Hypothetical		1,000.00		1,017.95		6.90		1.38
International Emerging Markets Account Class 2
Actual		1,000.00		940.86		2.60	(b)	1.63
Hypothetical		1,000.00		1,016.71		8.15		1.63
LargeCap Growth Account I Class 1
Actual		1,000.00		1,051.57		3.87		0.76
Hypothetical		1,000.00		1,021.03		3.81		0.76
LargeCap Growth Account I Class 2
Actual		1,000.00		995.71		1.66	(b)	1.01
Hypothetical		1,000.00		1,019.79		5.06		1.01
LargeCap Growth Account Class 1
Actual		1,000.00		1,059.76		3.52		0.69
Hypothetical		1,000.00		1,021.37		3.46		0.69
LargeCap Growth Account Class 2
Actual		1,000.00		1,058.30		4.80		0.94
Hypothetical		1,000.00		1,020.13		4.71		0.94
LargeCap S&P 500 Index Account Class 1
Actual		1,000.00		1,010.94		1.25		0.25
Hypothetical		1,000.00		1,023.55		1.25		0.25

257

		SHAREHOLDER EXPENSE EXAMPLE
		PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
		(unaudited)
						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015		Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)		Expense Ratio
LargeCap S&P 500 Index Account Class 2
Actual	$	1,000.00	$	981.42	$	0.81	(b)	0.50	%
Hypothetical		1,000.00		1,022.32		2.51		0.50
LargeCap S&P 500 Managed Volatility Index
Account Class 1
Actual		1,000.00		1,006.24		2.34		0.47
Hypothetical		1,000.00		1,022.46		2.36		0.47
LargeCap Value Account Class 1
Actual		1,000.00		999.70		3.02		0.61
Hypothetical		1,000.00		1,021.77		3.06		0.61
LargeCap Value Account Class 2
Actual		1,000.00		986.57		1.40	(b)	0.86
Hypothetical		1,000.00		1,020.53		4.31		0.86
MidCap Account Class 1
Actual		1,000.00		1,050.50		2.64		0.52
Hypothetical		1,000.00		1,022.22		2.61		0.52
MidCap Account Class 2
Actual		1,000.00		1,049.06		3.91		0.77
Hypothetical		1,000.00		1,020.98		3.86		0.77
Money Market Account Class 1
Actual		1,000.00		1,000.00		0.89		0.18
Hypothetical		1,000.00		1,023.90		0.90		0.18
Money Market Account Class 2
Actual		1,000.00		1,000.00		0.89		0.18
Hypothetical		1,000.00		1,023.90		0.90		0.18
Principal Capital Appreciation Account Class 1
Actual		1,000.00		1,027.79		3.22		0.64
Hypothetical		1,000.00		1,021.62		3.21		0.64
Principal Capital Appreciation Account Class 2
Actual		1,000.00		1,026.68		4.47		0.89
Hypothetical		1,000.00		1,020.38		4.46		0.89
Principal LifeTime 2010 Account Class 1
Actual		1,000.00		1,015.87		0.20		0.04
Hypothetical		1,000.00		1,024.60		0.20		0.04
Principal LifeTime 2020 Account Class 1
Actual		1,000.00		1,018.16		0.15		0.03
Hypothetical		1,000.00		1,024.65		0.15		0.03
Principal LifeTime 2020 Account Class 2
Actual		1,000.00		982.47		0.46	(b)	0.28
Hypothetical		1,000.00		1,023.41		1.40		0.28
Principal LifeTime 2030 Account Class 1
Actual		1,000.00		1,022.69		0.20		0.04
Hypothetical		1,000.00		1,024.60		0.20		0.04
Principal LifeTime 2030 Account Class 2
Actual		1,000.00		982.10		0.47	(b)	0.29
Hypothetical		1,000.00		1,023.36		1.45		0.29
Principal LifeTime 2040 Account Class 1
Actual		1,000.00		1,026.90		0.20		0.04
Hypothetical		1,000.00		1,024.60		0.20		0.04
Principal LifeTime 2040 Account Class 2
Actual		1,000.00		982.83		0.47	(b)	0.29
Hypothetical		1,000.00		1,023.36		1.45		0.29

258

		SHAREHOLDER EXPENSE EXAMPLE
		PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
		(unaudited)
						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015		Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)		Expense Ratio
Principal LifeTime 2050 Account Class 1
Actual	$	1,000.00	$	1,029.62	$	0.25		0.05	%
Hypothetical		1,000.00		1,024.55		0.25		0.05
Principal LifeTime 2050 Account Class 2
Actual		1,000.00		983.15		0.49	(b)	0.30
Hypothetical		1,000.00		1,023.31		1.51		0.30
Principal LifeTime 2060 Account Class 1
Actual		1,000.00		1,029.53		0.65		0.13
Hypothetical		1,000.00		1,024.15		0.65		0.13
Principal LifeTime Strategic Income Account Class 1
Actual		1,000.00		1,010.43		0.25		0.05
Hypothetical		1,000.00		1,024.55		0.25		0.05
Real Estate Securities Account Class 1
Actual		1,000.00		945.36		4.29		0.89
Hypothetical		1,000.00		1,020.38		4.46		0.89
Real Estate Securities Account Class 2
Actual		1,000.00		944.32		5.50		1.14
Hypothetical		1,000.00		1,019.14		5.71		1.14
SAM Balanced Portfolio Class 1
Actual		1,000.00		1,016.96		1.15		0.23
Hypothetical		1,000.00		1,023.65		1.15		0.23
SAM Balanced Portfolio Class 2
Actual		1,000.00		1,015.88		2.40		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
SAM Conservative Balanced Portfolio Class 1
Actual		1,000.00		1,014.29		1.15		0.23
Hypothetical		1,000.00		1,023.65		1.15		0.23
SAM Conservative Balanced Portfolio Class 2
Actual		1,000.00		1,012.82		2.40		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
SAM Conservative Growth Portfolio Class 1
Actual		1,000.00		1,019.98		1.15		0.23
Hypothetical		1,000.00		1,023.65		1.15		0.23
SAM Conservative Growth Portfolio Class 2
Actual		1,000.00		1,019.13		2.40		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
SAM Flexible Income Portfolio Class 1
Actual		1,000.00		1,009.08		1.15		0.23
Hypothetical		1,000.00		1,023.65		1.15		0.23
SAM Flexible Income Portfolio Class 2
Actual		1,000.00		1,007.62		2.39		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
SAM Strategic Growth Portfolio Class 1
Actual		1,000.00		1,020.95		1.15		0.23
Hypothetical		1,000.00		1,023.65		1.15		0.23
SAM Strategic Growth Portfolio Class 2
Actual		1,000.00		1,019.71		2.40		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
Short-Term Income Account Class 1
Actual		1,000.00		1,007.72		2.39		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
Short-Term Income Account Class 2
Actual		1,000.00		1,007.75		3.63		0.73
Hypothetical		1,000.00		1,021.17		3.66		0.73

259

		SHAREHOLDER EXPENSE EXAMPLE
		PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
		(unaudited)
						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015		Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)		Expense Ratio
SmallCap Blend Account Class 1
Actual	$	1,000.00	$	1,085.06	$	4.29		0.83	%
Hypothetical		1,000.00		1,020.68		4.16		0.83
SmallCap Blend Account Class 2
Actual		1,000.00		1,046.93		4.03	(c)	1.08
Hypothetical		1,000.00		1,019.44		5.41		1.08

^(a) Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

^(b) Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period (May 1, 2015 to June 30, 2015), multiplied by 60/365 (to reflect the period since inception).

^(c) Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period (February 17, 2015 to June 30, 2015), multiplied by 133/365 (to reflect the period since inception).

260

FUND DIRECTORS AND OFFICERS

Under Maryland law, a Board of Directors oversees the Fund. The Directors have financial or other relevant experience and meet several times during the year to review contracts, Fund activities and the quality of services provided to the Fund. Each director also has the same position with Principal Funds, Inc. which is also sponsored by Principal Life Insurance Company. Each director holds office for an indefinite term or until reaching age 72. Directors considered to be “interested persons” as defined in the Investment Company Act of 1940, as amended, as shown below are considered to be interested because of an affiliation with the Manager and Principal Life Insurance Company.

The following directors are considered not to be “interested persons” as defined in the 1940 Act

		Number of	Other
Name,		Portfolios in Fund	Directorships
Position Held with the Fund,	Principal Occupation(s)	Complex Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	115	Durango Herald, Inc;
Director since 2004			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948
Leroy T. Barnes, Jr.	Retired.	115	McClatchy
Director since March 2012			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.; Frontier
1951			Communications, Inc.
Craig Damos	President, The Damos	115	Hardin Construction
Director since 2008	Company. Formerly, CEO, The		Company
Member, Audit Committee	Weitz Company
Member, 15(c) Committee
1954
Mark A. Grimmett	Executive Vice President and	115	None
Director since 2004	CFO, Merle Norman Cosmetics,
Member, Nominating and Governance	Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960
Fritz S. Hirsch	CEO, MAM USA	115	Focus Products Group
Director since 2005	Formerly, President, Sassy, Inc.
Member, Operations Committee
Member, 15(c) Committee
1951
Tao Huang	Formerly, Chief Operating	115	Armstrong World
Director since March 2012	Officer, Morningstar, Inc.		Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962
William C. Kimball	Partner, Kimball – Porter	115	Casey’s General Stores,
Director since 1999	Investments L.L.C.		Inc.
Member, Nominating and Governance
Committee
1947
Karen (“Karrie”) McMillan	Managing Director, Patomak	115	None
Director since 2014	Global Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute
Daniel Pavelich	Retired.	115	None
Director since 2007
Member, Audit Committee
1944

261

The following directors are considered to be “interested persons” as defined in the 1940 Act, as amended, because of an affiliation with the Manager and Principal Life.

		Number of
		Portfolios in Fund	Other
Name,		Complex	Directorships
Position Held with the Fund,	Principal Occupation(s)	Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Michael J. Beer	Executive Vice President, Principal	115	None
Director since 2012	Funds Distributor, Inc. (“PFD”)
President, Chief Executive Officer	Vice President/Mutual Funds and
Member, Executive Committee	Broker Dealer, Principal Life
1961	Insurance Company (“PLIC”)
	Director, Principal Management
	Corporation, (the “Manager”)
	President & Chief Executive Officer,
	the Manager since 2015
	Executive Vice President/ Chief
	Operating Officer, the Manager
	(2008-2015)
	Director, Princor
	President, Princor (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) since 2011
	President, PSS since 2011
Nora M. Everett	Director, Edge Asset Management,	115	None
Director since 2008	Inc. (“Edge”) (2008-2011)
Chairman	Director, Finisterre Capital LLP since
Member, Executive Committee	2011
1959	Director, Origin Asset Management
	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) since 2010
	Chairman, PFD since 2011
	Senior Vice President/Retirement and
	Investor Services, PLIC (2008-2015)
	President/Retirement and Investor
	Services, PLIC since 2015
	Chairman, the Manager since 2011
	President, the Manager (2008-2015)
	Chairman, Princor since 2011
	Chief Executive Officer, Princor
	(2009-2015)
	Chairman, PSS since 2011

Correspondence intended for each Director who is other than an Interested Director may be sent to 711 High Street, Des Moines, IA

50392.

262

The following table presents officers of the Funds.

Name, Position Held with the Fund, Address, and Year of Birth Randy L. Bergstrom Assistant Tax Counsel 711 High Street, Des Moines, IA 50392 1955 Tracy Bollin Chief Financial Officer 711 High Street, Des Moines, IA 50392 1970	Principal Occupation(s) During past 5 years Counsel, Principal Global Investors, LLC (“PGI”) Counsel, PLIC Chief Financial Officer, PFA since 2010 Assistant Controller, PFD (2007-2010) Chief Financial Officer, PFD since 2010 Chief Financial Officer, the Manager since 2010 Financial Controller, the Manager (2008-2010) Assistant Controller, Princor (2009-2010) Chief Financial Officer, Princor since 2010 Financial Controller, Princor (2008-2009) Assistant Controller, PSS (2007-2010) Chief Financial Officer, PSS since 2010
David J. Brown Chief Compliance Officer 711 High Street, Des Moines, IA 50392 1960	Senior Vice President, PFD Vice President/Compliance, PLIC Senior Vice President, the Manager Senior Vice President, Princor Senior Vice President, PSS
Teresa M. Button Treasurer 711 High Street, Des Moines, IA 50392 1963	Vice President/Treasurer, Edge since 2011 Vice President/Treasurer, PFA since 2011 Vice President/Treasurer, PFD since 2011 Vice President/Treasurer, PGI since 2011 Vice President/Treasurer, PLIC since 2011 Vice President/Treasurer, the Manager since 2011 Vice President/Treasurer, Post since 2011 Vice President/Treasurer, Principal-REI since 2011 Vice President/Treasurer, Princor since 2011 Vice President/Treasurer, PSS since 2011 Treasurer, Spectrum since 2011
Ernie H. Gillum Vice President, Assistant Secretary 711 High Street, Des Moines, IA 50392 1955 Carolyn F. Kolks Assistant Tax Counsel 711 High Street, Des Moines, IA 50392 1962 Jennifer A. Mills Assistant Counsel 711 High Street, Des Moines, IA 50392 1973	Vice President/Chief Compliance Officer, the Manager Vice President/Chief Compliance Officer, PSS Counsel, PGI Counsel, PLIC Counsel, PFD (2009-2013) Counsel, PLIC Counsel, the Manager (2009-2013, 2014 - present) Counsel, Princor (2009-2013) Counsel, PSS (2009-2013)
Layne A. Rasmussen Vice President and Controller 711 High Street, Des Moines, IA 50392 1958 Greg Reymann Assistant Counsel 711 High Street, Des Moines, IA 50392 1958	Vice President/Controller – Principal Funds, the Manager Assistant General Counsel, PLIC since 2014 VP, Chief Compliance Officer and Chief Risk Officer, Transamerica Asset Management, Inc. (“TAM”) (2010-2012) Assistant General Counsel, Transamerica Asset Management Group (2013-2014) Vice President/CFTC Principal, TAM (2013-2014)

263

Name, Position Held with the Fund,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Britney L. Schnathorst	Counsel, PLIC since 2013
Assistant Counsel	Prior thereto, Attorney in Private Practice
711 High Street, Des Moines, IA 50392
1981
Adam U. Shaikh	Counsel, PFD (2006-2013)
Assistant Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392	Counsel, the Manager (2007-2013, 2014 - present)
1972	Counsel, Princor (2007-2013)
	Counsel, PSS (2007-2013)
Dan Westholm	Assistant Vice President/Treasury, PFA since 2013
Assistant Treasurer	Director – Treasury, PFA (2011-2013)
711 High Street, Des Moines, IA 50392	Assistant Vice President/Treasury, PFD since 2013
1966	Director – Treasury, PFD (2011-2013)
	Assistant Vice President/Treasury, PLIC
	Assistant Vice President/Treasury, the Manager
	Assistant Vice President/Treasury, Princor since 2013
	Director – Treasury, Princor (2008-2009, 2011-2013)
	Assistant Vice President/Treasury, PSS
Beth Wilson	Vice President, the Manager (2007-2013)
Vice President and Secretary	Vice President, Princor (2007-2009)
711 High Street, Des Moines, IA 50392
1956
Clint Woods	Associate General Counsel, AEGON USA Investment Management, LLC (2003-
Counsel	2012)
711 High Street, Des Moines, IA 50392	Assistant General Counsel, Assistant Corporate Secretary, Governance Officer,
1961	PLIC since 2013

The 15(c) Committee assists 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 Audit Committee selects the independent auditors for the Fund and oversees the activities of the independent auditors as well as the internal auditors. The committee also receives reports about accounting and financial matters affecting the Fund.

The Executive Committee is selected by the Board. It may exercise all the powers of the Board, with certain exceptions, when the Board is not in session. The Committee must report its actions to the Board.

The Nominating and Governance Committee selects and nominates all candidates who are not “interested persons” of the Fund for election to the Board. The committee also oversees the structure and efficiency of the Board of Directors and the committees the Board establishes.

The Operations Committee oversees the provision of administrative and distribution services to the Funds, communications with the Funds’ shareholders, and provides review and oversight of the Funds’ operations.

Additional information about the Fund is available in the Prospectuses dated May 1, 2015, and the Statement of Additional Information dated May 1, 2015. These documents may be obtained free of charge by writing or telephoning Principal Funds Distributor, Inc., P.O. Box 10423, Des Moines, IA 50306. Telephone 1-800-222-5852.

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 Principal Funds Distributor, Inc., at 1-800-222-5852, or at www.sec.gov.

SCHEDULES OF INVESTMENTS

The Fund files complete schedules of investments with the Securities and Exchange Commission as of March 31 and September 30 of each year on Form N-Q. The Fund’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330.

264

Special Meeting of Shareholders

Principal Variable Contracts Funds, Inc. – LargeCap Blend Account II

Held April 10, 2015

1.      Approval of a Plan of Reorganization providing for the reorganization of the LargeCap Blend Account II into the Principal Capital Appreciation Account:

In Favor	Opposed	Abstain
12,171,790.5186	180,115.8597	579,436.1247

====================================

Special Meeting of Shareholders

Principal Variable Contracts Funds, Inc. – SmallCap Value Account I

Held April 10, 2015

1.      Approval of a Plan of Reorganization providing for the reorganization of the SmallCap Value Account I into the SmallCap Blend Account:

In Favor	Opposed	Abstain
4,670,548.3531	142,682.4756	257,456.5513

====================================

Special Meeting of Shareholders

Principal Variable Contracts Funds, Inc. – SmallCap Growth Account II

Held April 10, 2015

1.      Approval of a Plan of Reorganization providing for the reorganization of the SmallCap Growth Account II into the SmallCap Blend Account:

In Favor	Opposed	Abstain
2,933,930.0086	42,751.8905	130,659.5759
	====================================

265

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This report must be preceded or accompanied by a current prospectus for the Principal Variable Contracts Funds, Inc.

WE’LL GIVE YOU AN EDGE^®

principalfunds.com

Principal Funds are distributed by Principal Funds Distributor, Inc.

MM1291-20| © 2015 Principal Financial Services | 08/2015 | t15071302na

Principal Variable Contracts Funds, Inc.

Semiannual Report
June 30, 2015

Table of Contents

Financial Statements	1
Notes to Financial Statements	21
Schedules of Investments	39
Financial Highlights (Includes performance information)	82
Shareholder Expense Example	98
Supplemental Information	101

Not FDIC or NCUA insured

May lose value Not a deposit No bank or credit union guarantee

Not insured by any Federal government agency

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
		Diversified						Government &
		International			Equity			High Quality
Amounts in thousands, except per share amounts		Account			Income Account			Bond Account
Investment in securities--at cost	$	336,489		$	371,837		$	301,718
Foreign currency--at cost	$	35		$	–		$	–
Assets
Investment in securities--at value	$	397,252		$	587,857		$	302,676
Foreign currency--at value		35			–			–
Cash		–			6			–
Receivables:
Dividends and interest		1,953			1,533			1,474
Fund shares sold		57			555			163
Investment securities sold		546			2,223			3,089
Total Assets		399,843			592,174			307,402
Liabilities
Accrued management and investment advisory fees		278			240			127
Accrued distribution fees		–			5			–
Accrued directors' expenses		3			4			2
Accrued other expenses		24			5			5
Cash overdraft		33			–			2
Payables:
Deferred foreign tax		26			–			–
Fund shares redeemed		324			234			217
Investment securities purchased		408			1,066			3,073
Total Liabilities		1,096			1,554			3,426
Net Assets Applicable to Outstanding Shares	$	398,747		$	590,620		$	303,976
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	423,608		$	335,710		$	311,184
Accumulated undistributed (overdistributed) net investment income (loss)		11,322			26,892			13,969
Accumulated undistributed (overdistributed) net realized gain (loss)		(96,817	)		11,999			(22,135	)
Net unrealized appreciation (depreciation) of investments		60,737			216,020			958
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		(103	)		(1	)		–
Total Net Assets	$	398,747		$	590,620		$	303,976
Capital Stock (par value: $.01 per share):
Shares authorized		300,000			200,000			200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	397,313		$	565,439		$	302,172
Shares issued and outstanding		26,635			24,526			28,818
Net Asset Value per share	$	14.92		$	23.05		$	10.49
Class 2: Net Assets	$	1,434		$	25,181		$	1,804
Shares issued and outstanding		96			1,101			172
Net Asset Value per share	$	15.01		$	22.87		$	10.49

See accompanying notes.

1

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
					LargeCap
Amounts in thousands, except per share amounts	Income Account				Growth Account			MidCap Account
Investment in securities--at cost	$	264,719		$	95,223		$	449,169
Assets
Investment in securities--at value	$	276,163		$	125,405		$	687,632
Cash		–			–			208
Receivables:
Dividends and interest		2,418			23			324
Fund shares sold		–			8			446
Investment securities sold		–			–			3,004
Total Assets		278,581			125,436			691,614
Liabilities
Accrued management and investment advisory fees		113			70			303
Accrued distribution fees		1			–			3
Accrued directors' expenses		2			2			3
Accrued other expenses		4			4			5
Cash overdraft		153			–			–
Payables:
Fund shares redeemed		200			86			331
Investment securities purchased		2,663			–			481
Total Liabilities		3,136			162			1,126
Net Assets Applicable to Outstanding Shares	$	275,445		$	125,274		$	690,488
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	251,012		$	108,416		$	317,070
Accumulated undistributed (overdistributed) net investment income (loss)		15,217			281			5,535
Accumulated undistributed (overdistributed) net realized gain (loss)		(2,228	)		(13,605	)		129,420
Net unrealized appreciation (depreciation) of investments		11,444			30,182			238,463
Total Net Assets	$	275,445		$	125,274		$	690,488
Capital Stock (par value: $.01 per share):
Shares authorized		200,000			300,000			105,000
Net Asset Value Per Share:
Class 1: Net Assets	$	272,759		$	124,283		$	674,277
Shares issued and outstanding		25,149			4,767			10,559
Net Asset Value per share	$	10.85		$	26.07		$	63.86
Class 2: Net Assets	$	2,686		$	991		$	16,211
Shares issued and outstanding		249			38			255
Net Asset Value per share	$	10.79		$	25.96		$	63.51

See accompanying notes.

2

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
					Principal Capital		Real Estate
	Money				Appreciation		Securities
Amounts in thousands, except per share amounts	Market Account				Account		Account
Investment in securities--at cost	$	271,058		$	142,076	$	113,362
Assets
Investment in securities--at value	$	271,058		$	175,489	$	151,640
Cash		20			–		–
Receivables:
Dividends and interest		10			202		537
Expense reimbursement from Manager		59			–		–
Expense reimbursement from Distributor		1			–		–
Fund shares sold		567			3		133
Investment securities sold		–			651		1,104
Total Assets		271,715			176,345		153,414
Liabilities
Accrued management and investment advisory fees		100			92		115
Accrued distribution fees		–			2		–
Accrued directors' expenses		2			2		2
Accrued other expenses		4			9		4
Payables:
Borrowing		–			–		120
Fund shares redeemed		103			414		366
Investment securities purchased		–			571		–
Total Liabilities		209			1,090		607
Net Assets Applicable to Outstanding Shares	$	271,506		$	175,255	$	152,807
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	271,514		$	135,602	$	99,686
Accumulated undistributed (overdistributed) net investment income (loss)		–			986		3,352
Accumulated undistributed (overdistributed) net realized gain (loss)		(8	)		5,254		11,491
Net unrealized appreciation (depreciation) of investments		–			33,413		38,278
Total Net Assets	$	271,506		$	175,255	$	152,807
Capital Stock (par value: $.01 per share):
Shares authorized	1,500,000				200,000		300,000
Net Asset Value Per Share:
Class 1: Net Assets	$	269,377		$	167,604	$	151,309
Shares issued and outstanding		269,385			7,308		7,168
Net Asset Value per share	$	1.00		$	22.93	$	21.11
Class 2: Net Assets	$	2,129		$	7,651	$	1,498
Shares issued and outstanding		2,129			337		71
Net Asset Value per share	$	1.00		$	22.70	$	21.20

See accompanying notes.

3

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
				SAM
		SAM		Conservative		SAM
		Balanced		Balanced		Conservative
Amounts in thousands, except per share amounts		Portfolio		Portfolio		Growth Portfolio
Investment in affiliated Accounts--at cost	$	762,873	$	196,818	$	263,672
Assets
Investment in affiliated Accounts--at value	$	897,222	$	221,611	$	308,148
Receivables:
Dividends and interest		360		110		91
Fund shares sold		198		45		61
Investment securities sold		985		84		129
Total Assets		898,765		221,850		308,429
Liabilities
Accrued management and investment advisory fees		169		41		57
Accrued distribution fees		21		4		22
Accrued directors' expenses		4		2		2
Accrued other expenses		4		4		4
Payables:
Fund shares redeemed		1,183		129		191
Investment securities purchased		360		110		91
Total Liabilities		1,741		290		367
Net Assets Applicable to Outstanding Shares	$	897,024	$	221,560	$	308,062
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	669,301	$	181,354	$	240,953
Accumulated undistributed (overdistributed) net investment income (loss)		25,895		7,287		6,403
Accumulated undistributed (overdistributed) net realized gain (loss)		67,479		8,126		16,230
Net unrealized appreciation (depreciation) of investments		134,349		24,793		44,476
Total Net Assets	$	897,024	$	221,560	$	308,062
Capital Stock (par value: $.01 per share):
Shares authorized		300,000		200,000		200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	797,052	$	203,342	$	201,691
Shares issued and outstanding		47,478		15,915		10,394
Net Asset Value per share	$	16.79	$	12.78	$	19.40
Class 2: Net Assets	$	99,972	$	18,218	$	106,371
Shares issued and outstanding		6,013		1,441		5,547
Net Asset Value per share	$	16.63	$	12.64	$	19.18

See accompanying notes.

4

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
	SAM Flexible			SAM Strategic		Short-Term
Amounts in thousands, except per share amounts	Income Portfolio			Growth Portfolio		Income Account
Investment in securities--at cost	$	–	$	–	$	253,608
Investment in affiliated Accounts--at cost	$	210,397	$	214,814	$	–
Assets
Investment in securities--at value	$	–	$	–	$	254,310
Investment in affiliated Accounts--at value		234,321		244,748		–
Cash		–		–		50
Receivables:
Dividends and interest		205		72		1,404
Expense reimbursement from Manager		–		–		2
Fund shares sold		2		61		25
Investment securities sold		309		–		547
Total Assets		234,837		244,881		256,338
Liabilities
Accrued management and investment advisory fees		44		46		103
Accrued distribution fees		4		21		–
Accrued directors' expenses		2		2		2
Accrued other expenses		4		4		5
Payables:
Fund shares redeemed		311		15		184
Investment securities purchased		206		117		1,174
Total Liabilities		571		205		1,468
Net Assets Applicable to Outstanding Shares	$	234,266	$	244,676	$	254,870
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	198,124	$	194,090	$	264,593
Accumulated undistributed (overdistributed) net investment income (loss)		9,064		5,021		6,426
Accumulated undistributed (overdistributed) net realized gain (loss)		3,154		15,631		(16,851	)
Net unrealized appreciation (depreciation) of investments		23,924		29,934		702
Total Net Assets	$	234,266	$	244,676	$	254,870
Capital Stock (par value: $.01 per share):
Shares authorized		200,000		200,000		400,000
Net Asset Value Per Share:
Class 1: Net Assets	$	212,836	$	145,079	$	253,265
Shares issued and outstanding		15,957		6,768		97,109
Net Asset Value per share	$	13.34	$	21.44	$	2.61
Class 2: Net Assets	$	21,430	$	99,597	$	1,605
Shares issued and outstanding		1,621		4,695		618
Net Asset Value per share	$	13.22	$	21.21	$	2.60

See accompanying notes.

5

STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
		SmallCap
Amounts in thousands, except per share amounts		Blend Account
Investment in securities--at cost	$	220,697
Assets
Investment in securities--at value	$	238,283
Deposits with counterparty		21
Receivables:
Dividends and interest		263
Fund shares sold		46
Investment securities sold		3,020
Variation margin on financial derivative instruments		2
Total Assets		241,635
Liabilities
Accrued management and investment advisory fees		161
Accrued distribution fees		1
Accrued directors' expenses		2
Accrued other expenses		48
Payables:
Fund shares redeemed		469
Investment securities purchased		3,265
Total Liabilities		3,946
Net Assets Applicable to Outstanding Shares	$	237,689
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	203,249
Accumulated undistributed (overdistributed) net investment income (loss)		316
Accumulated undistributed (overdistributed) net realized gain (loss)		16,544
Net unrealized appreciation (depreciation) of investments		17,580
Total Net Assets	$	237,689
Capital Stock (par value: $.01 per share):
Shares authorized		200,000
Net Asset Value Per Share:
Class 1: Net Assets	$	232,906
Shares issued and outstanding		15,340
Net Asset Value per share	$	15.18
Class 2: Net Assets	$	4,783
Shares issued and outstanding		315
Net Asset Value per share	$	15.17

See accompanying notes.

6

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
		Diversified						Government &
		International			Equity			High Quality
Amounts in thousands		Account			Income Account			Bond Account
Net Investment Income (Loss)
Income:
Dividends	$	7,837		$	9,498		$	–
Withholding tax		(871	)		(171	)		–
Interest		–			2			4,770
Total Income		6,966			9,329			4,770
Expenses:
Management and investment advisory fees		1,679			1,479			775
Distribution Fees - Class 2		2			32			2
Custodian fees		58			8			2
Directors' expenses		4			6			4
Professional fees		10			2			2
Other expenses		2			1			–
Total Expenses		1,755			1,528			785
Net Investment Income (Loss)		5,211			7,801			3,985
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures
Net realized gain (loss) from:
Investment transactions		14,330			20,082			203
Foreign currency transactions		(144	)		(1	)		–
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $26, $0 and $0, respectively)		3,066			(28,991	)		(2,677	)
Translation of assets and liabilities in foreign currencies		(12	)		(1	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures		17,240			(8,911	)		(2,474	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	22,451		$	(1,110	)	$	1,511

See accompanying notes.

7

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
					LargeCap
Amounts in thousands	Income Account				Growth Account			MidCap Account
Net Investment Income (Loss)
Income:
Dividends	$	–		$	539		$	2,960
Withholding tax		–			(1	)		(63	)
Interest		5,746			–			–
Total Income		5,746			538			2,897
Expenses:
Management and investment advisory fees		689			424			1,832
Distribution Fees - Class 2		4			1			20
Custodian fees		1			1			3
Directors' expenses		3			2			6
Professional fees		2			2			2
Other expenses		–			–			2
Total Expenses		699			430			1,865
Net Investment Income (Loss)		5,047			108			1,032
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures
Net realized gain (loss) from:
Investment transactions		1,153			3,720			59,306
Change in unrealized appreciation/depreciation of:
Investments		(4,349	)		3,493			(25,152	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures		(3,196	)		7,213			34,154
Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,851		$	7,321		$	35,186

See accompanying notes.

8

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
				Principal Capital
	Money			Appreciation			Real Estate
Amounts in thousands	Market Account			Account			Securities Account
Net Investment Income (Loss)
Income:
Dividends	$	–	$	881		$	1,605
Interest		242		–			–
Total Income		242		881			1,605
Expenses:
Management and investment advisory fees		608		297			742
Distribution Fees - Class 2		2		9			1
Custodian fees		5		4			1
Directors' expenses		3		2			3
Professional fees		2		2			2
Total Gross Expenses		620		314			749
Less: Reimbursement from Manager - Class 1		374		–			–
Less: Reimbursement from Manager - Class 2		2		–			–
Less: Reimbursement from Distributor - Class 2		2		–			–
Total Net Expenses		242		314			749
Net Investment Income (Loss)		–		567			856
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures
Net realized gain (loss) from:
Investment transactions		2		2,386			7,123
Change in unrealized appreciation/depreciation of:
Investments		–		(1,383	)		(16,870	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures		2		1,003			(9,747	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	2	$	1,570		$	(8,891	)

See accompanying notes.

9

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
		SAM Balanced		SAM Conservative		SAM Conservative
Amounts in thousands		Portfolio		Balanced Portfolio		Growth Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	1,576	$	580	$	281
Total Income		1,576		580		281
Expenses:
Management and investment advisory fees		1,032		251		345
Distribution Fees - Class 2		125		22		131
Directors' expenses		9		3		4
Professional fees		1		1		1
Other expenses		1		–		–
Total Expenses		1,168		277		481
Net Investment Income (Loss)		408		303		(200	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures
Net realized gain (loss) from:
Investment transactions in affiliated Accounts		7,753		777		929
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts		7,459		2,063		5,257
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures		15,212		2,840		6,186
Net Increase (Decrease) in Net Assets Resulting from Operations	$	15,620	$	3,143	$	5,986

See accompanying notes.

10

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	SAM Flexible				SAM Strategic			Short-Term
Amounts in thousands	Income Portfolio				Growth Portfolio			Income Account
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts	$	1,079		$	204		$	–
Interest		–			–			2,600
Total Income		1,079			204			2,600
Expenses:
Management and investment advisory fees		266			272			633
Distribution Fees - Class 2		26			123			2
Custodian fees		–			–			3
Directors' expenses		3			3			3
Professional fees		1			1			2
Total Gross Expenses		296			399			643
Less: Reimbursement from Manager - Class 1		–			–			13
Total Net Expenses		296			399			630
Net Investment Income (Loss)		783			(195	)		1,970
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures
Net realized gain (loss) from:
Investment transactions		–			–			(58	)
Investment transactions in affiliated Accounts		1,437			870			–
Change in unrealized appreciation/depreciation of:
Investments		–			–			135
Investments in affiliated Accounts		(143	)		4,121			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures		1,294			4,991			77
Net Increase (Decrease) in Net Assets Resulting from Operations	$	2,077		$	4,796		$	2,047

See accompanying notes.

11

STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
Six Months Ended June 30, 2015 (unaudited)
	SmallCap
Amounts in thousands	Blend Account (a)
Net Investment Income (Loss)
Income:
Dividends	$	762
Interest		1
Securities lending - net		1
Total Income		764
Expenses:
Management and investment advisory fees		554
Distribution Fees - Class 2		2
Custodian fees		3
Directors' expenses		2
Professional fees		2
Total Expenses		563
Net Investment Income (Loss)		201
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures
Net realized gain (loss) from:
Investment transactions		9,524
Futures contracts		79
Change in unrealized appreciation/depreciation of:
Investments		(1,320	)
Futures contracts		(44	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
and Futures		8,239
Net Increase (Decrease) in Net Assets Resulting from Operations	$	8,440
(a) Class 2 shares commenced operations on February 17, 2015.

See accompanying notes.

12

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Diversified
Amounts in thousands		International Account						Equity Income Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	5,211		$	7,938		$	7,801		$	16,715
Net realized gain (loss) on investments, foreign currencies, and futures		14,186			31,940			20,081			48,459
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		3,054			(54,005	)		(28,992	)		12,687
Net Increase (Decrease) in Net Assets Resulting from Operations		22,451			(14,127	)		(1,110	)		77,861
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(10,543	)		–			(15,060	)
Class 2		–			(25	)		–			(542	)
Total Dividends and Distributions		–			(10,568	)		–			(15,602	)
Capital Share Transactions
Shares sold:
Class 1		10,859			18,555			21,183			27,917
Class 2		187			112			1,006			712
Shares issued in reinvestment of dividends and distributions:
Class 1		–			10,543			–			15,060
Class 2		–			25			–			542
Shares redeemed:
Class 1		(65,119	)		(76,371	)		(54,134	)		(133,970	)
Class 2		(91	)		(261	)		(1,223	)		(2,974	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(54,164	)		(47,397	)		(33,168	)		(92,713	)
Total Increase (Decrease)		(31,713	)		(72,092	)		(34,278	)		(30,454	)
Net Assets
Beginning of period		430,460			502,552			624,898			655,352
End of period (including undistributed net investment income as set forth below)	$	398,747		$	430,460		$	590,620		$	624,898
Undistributed (Overdistributed) Net Investment Income (Loss)	$	11,322		$	6,111		$	26,892		$	19,091
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		732			1,256			915			1,264
Class 2		13			8			44			32
Shares issued in reinvestment of dividends and distributions:
Class 1		–			707			–			684
Class 2		–			2			–			25
Shares redeemed:
Class 1		(4,570	)		(5,196	)		(2,318	)		(6,039	)
Class 2		(6	)		(18	)		(53	)		(136	)
Net Increase (Decrease)		(3,831	)		(3,241	)		(1,412	)		(4,170	)

See accompanying notes.

13

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Government & High
Amounts in thousands		Quality Bond Account						Income Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	3,985		$	8,789		$	5,047		$	11,190
Net realized gain (loss) on investments, foreign currencies, and futures		203			2,348			1,153			2,029
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		(2,677	)		6,201			(4,349	)		1,774
Net Increase (Decrease) in Net Assets Resulting from Operations		1,511			17,338			1,851			14,993
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(12,571	)		–			(12,529	)
Class 2		–			(31	)		–			(128	)
Total Dividends and Distributions		–			(12,602	)		–			(12,657	)
Capital Share Transactions
Shares sold:
Class 1		8,888			23,451			7,354			11,225
Class 2		940			69			4			19
Shares issued in reinvestment of dividends and distributions:
Class 1		–			12,571			–			12,529
Class 2		–			31			–			128
Shares redeemed:
Class 1		(22,739	)		(105,587	)		(12,025	)		(19,783	)
Class 2		(49	)		(128	)		(372	)		(541	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(12,960	)		(69,593	)		(5,039	)		3,577
Total Increase (Decrease)		(11,449	)		(64,857	)		(3,188	)		5,913
Net Assets
Beginning of period		315,425			380,282			278,633			272,720
End of period (including undistributed net investment income as set forth below)	$	303,976		$	315,425		$	275,445		$	278,633
Undistributed (Overdistributed) Net Investment Income (Loss)	$	13,969		$	9,984		$	15,217		$	10,170
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		843			2,244			675			1,028
Class 2		89			7			–			2
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,219			–			1,165
Class 2		–			3			–			12
Shares redeemed:
Class 1		(2,160	)		(10,065	)		(1,103	)		(1,835	)
Class 2		(5	)		(12	)		(34	)		(50	)
Net Increase (Decrease)		(1,233	)		(6,604	)		(462	)		322

See accompanying notes.

14

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
Amounts in thousands		LargeCap Growth Account						MidCap Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	108		$	140		$	1,032		$	3,843
Net realized gain (loss) on investments, foreign currencies, and futures		3,720			9,440			59,306			72,862
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		3,493			2,705			(25,152	)		3,163
Net Increase (Decrease) in Net Assets Resulting from Operations		7,321			12,285			35,186			79,868
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(664	)		–			(3,218	)
Class 2		–			(2	)		–			(44	)
From net realized gain on investments:
Class 1		–			–			–			(55,916	)
Class 2		–			–			–			(1,367	)
Total Dividends and Distributions		–			(666	)		–			(60,545	)
Capital Share Transactions
Shares sold:
Class 1		4,164			28,520			14,653			58,293
Class 2		356			64			152			341
Shares issued in reinvestment of dividends and distributions:
Class 1		–			664			–			59,134
Class 2		–			2			–			1,411
Shares redeemed:
Class 1		(10,249	)		(17,781	)		(51,618	)		(109,369	)
Class 2		(70	)		(188	)		(681	)		(1,335	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,799	)		11,281			(37,494	)		8,475
Total Increase (Decrease)		1,522			22,900			(2,308	)		27,798
Net Assets
Beginning of period		123,752			100,852			692,796			664,998
End of period (including undistributed net investment income as set forth below)	$	125,274		$	123,752		$	690,488		$	692,796
Undistributed (Overdistributed) Net Investment Income (Loss)	$	281		$	173		$	5,535		$	4,503
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		162			1,243			235			987
Class 2		14			3			2			6
Shares issued in reinvestment of dividends and distributions:
Class 1		–			28			–			1,037
Class 2		–			–			–			25
Shares redeemed:
Class 1		(398	)		(767	)		(810	)		(1,836	)
Class 2		(3	)		(8	)		(11	)		(22	)
Net Increase (Decrease)		(225	)		499			(584	)		197

See accompanying notes.

15

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
								Principal Capital
Amounts in thousands		Money Market Account						Appreciation Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	–		$	–		$	567		$	378
Net realized gain (loss) on investments, foreign currencies, and futures		2			–			2,386			3,036
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		–			–			(1,383	)		1,130
Net Increase (Decrease) in Net Assets Resulting from Operations		2			–			1,570			4,544
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			–			–			(1,007	)
Class 2		–			–			–			(188	)
From net realized gain on investments:
Class 1		–			–			–			(5,104	)
Class 2		–			–			–			(1,024	)
Total Dividends and Distributions		–			–			–			(7,323	)
Capital Share Transactions
Shares sold:
Class 1		76,934			146,475			1,679			1,823
Class 2		6,177			295			455			496
Shares issued in acquisition:
Class 1		N/A			N/A			139,230			N/A
Class 2		N/A			N/A			1,001			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			–			–			6,111
Class 2		–			–			–			1,212
Shares redeemed:
Class 1		(86,462	)		(150,680	)		(7,890	)		(4,508	)
Class 2		(4,982	)		(320	)		(871	)		(713	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(8,333	)		(4,230	)		133,604			4,421
Total Increase (Decrease)		(8,331	)		(4,230	)		135,174			1,642
Net Assets
Beginning of period		279,837			284,067			40,081			38,439
End of period (including undistributed net investment income as set forth below)	$	271,506		$	279,837		$	175,255		$	40,081
Undistributed (Overdistributed) Net Investment Income (Loss)	$	–		$	–		$	986		$	419
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		76,934			146,475			73			77
Class 2		6,177			295			20			23
Shares issued in acquisition:
Class 1		N/A			N/A			6,089			N/A
Class 2		N/A			N/A			44			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			–			–			290
Class 2		–			–			–			58
Shares redeemed:
Class 1		(86,462	)		(150,680	)		(342	)		(191	)
Class 2		(4,982	)		(320	)		(39	)		(31	)
Net Increase (Decrease)		(8,333	)		(4,230	)		5,845			226

See accompanying notes.

16

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		Real Estate
Amounts in thousands		Securities Account						SAM Balanced Portfolio
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	856		$	2,192		$	408		$	25,489
Net realized gain (loss) on investments, foreign currencies, and futures		7,123			6,240			7,753			68,022
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		(16,870	)		32,938			7,459			(29,299	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(8,891	)		41,370			15,620			64,212
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(2,395	)		–			(23,276	)
Class 2		–			(4	)		–			(2,500	)
From net realized gain on investments:
Class 1		–			–			–			(120,112	)
Class 2		–			–			–			(14,177	)
Total Dividends and Distributions		–			(2,399	)		–			(160,065	)
Capital Share Transactions
Shares sold:
Class 1		12,582			21,401			14,526			20,836
Class 2		1,203			189			5,299			5,050
Shares issued in reinvestment of dividends and distributions:
Class 1		–			2,395			–			143,388
Class 2		–			4			–			16,677
Shares redeemed:
Class 1		(19,185	)		(24,586	)		(58,428	)		(165,575	)
Class 2		(95	)		(53	)		(6,753	)		(14,302	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,495	)		(650	)		(45,356	)		6,074
Total Increase (Decrease)		(14,386	)		38,321			(29,736	)		(89,779	)
Net Assets
Beginning of period		167,193			128,872			926,760			1,016,539
End of period (including undistributed net investment income as set forth below)	$	152,807		$	167,193		$	897,024		$	926,760
Undistributed (Overdistributed) Net Investment Income (Loss)	$	3,352		$	2,496		$	25,895		$	25,487
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		542			1,078			860			1,163
Class 2		53			9			317			290
Shares issued in reinvestment of dividends and distributions:
Class 1		–			119			–			8,862
Class 2		–			–			–			1,038
Shares redeemed:
Class 1		(841	)		(1,258	)		(3,476	)		(9,257	)
Class 2		(4	)		(3	)		(404	)		(812	)
Net Increase (Decrease)		(250	)		(55	)		(2,703	)		1,284

See accompanying notes.

17

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		SAM Conservative						SAM Conservative
Amounts in thousands		Balanced Portfolio						Growth Portfolio
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	303		$	6,985		$	(200	)	$	6,604
Net realized gain (loss) on investments, foreign currencies, and futures		777			11,274			929			20,264
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		2,063			(4,698	)		5,257			(6,542	)
Net Increase (Decrease) in Net Assets Resulting from Operations		3,143			13,561			5,986			20,326
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(6,281	)		–			(3,414	)
Class 2		–			(450	)		–			(1,627	)
From net realized gain on investments:
Class 1		–			(17,846	)		–			(22,853	)
Class 2		–			(1,393	)		–			(12,440	)
Total Dividends and Distributions		–			(25,970	)		–			(40,334	)
Capital Share Transactions
Shares sold:
Class 1		9,489			18,269			11,983			26,377
Class 2		2,593			1,589			7,810			7,412
Shares issued in reinvestment of dividends and distributions:
Class 1		–			24,127			–			26,267
Class 2		–			1,843			–			14,067
Shares redeemed:
Class 1		(15,705	)		(36,531	)		(12,780	)		(21,167	)
Class 2		(1,312	)		(1,923	)		(6,159	)		(10,589	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(4,935	)		7,374			854			42,367
Total Increase (Decrease)		(1,792	)		(5,035	)		6,840			22,359
Net Assets
Beginning of period		223,352			228,387			301,222			278,863
End of period (including undistributed net investment income as set forth below)	$	221,560		$	223,352		$	308,062		$	301,222
Undistributed (Overdistributed) Net Investment Income (Loss)	$	7,287		$	6,984		$	6,403		$	6,603
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		740			1,378			615			1,338
Class 2		203			124			406			378
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,943			–			1,416
Class 2		–			150			–			766
Shares redeemed:
Class 1		(1,228	)		(2,767	)		(656	)		(1,050	)
Class 2		(103	)		(148	)		(319	)		(533	)
Net Increase (Decrease)		(388	)		680			46			2,315

See accompanying notes.

18

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
		SAM Flexible						SAM Strategic
Amounts in thousands		Income Portfolio						Growth Portfolio
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015			31, 2014
Operations
Net investment income (loss)	$	783		$	8,281		$	(195	)	$	5,217
Net realized gain (loss) on investments, foreign currencies, and futures		1,437			6,566			870			19,399
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		(143	)		(1,072	)		4,121			(6,413	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,077			13,775			4,796			18,203
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(7,762	)		–			(1,996	)
Class 2		–			(654	)		–			(1,242	)
From net realized gain on investments:
Class 1		–			(12,001	)		–			(21,163	)
Class 2		–			(1,089	)		–			(15,284	)
Total Dividends and Distributions		–			(21,506	)		–			(39,685	)
Capital Share Transactions
Shares sold:
Class 1		8,991			20,434			12,412			21,352
Class 2		5,278			1,049			5,531			7,817
Shares issued in reinvestment of dividends and distributions:
Class 1		–			19,763			–			23,159
Class 2		–			1,743			–			16,526
Shares redeemed:
Class 1		(13,403	)		(32,361	)		(9,110	)		(14,336	)
Class 2		(3,822	)		(1,788	)		(4,262	)		(6,465	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,956	)		8,840			4,571			48,053
Total Increase (Decrease)		(879	)		1,109			9,367			26,571
Net Assets
Beginning of period		235,145			234,036			235,309			208,738
End of period (including undistributed net investment income as set forth below)	$	234,266		$	235,145		$	244,676		$	235,309
Undistributed (Overdistributed) Net Investment Income (Loss)	$	9,064		$	8,281		$	5,021		$	5,216
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		672			1,498			581			959
Class 2		396			78			260			354
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,509			–			1,140
Class 2		–			134			–			820
Shares redeemed:
Class 1		(1,001	)		(2,366	)		(426	)		(626	)
Class 2		(287	)		(129	)		(201	)		(289	)
Net Increase (Decrease)		(220	)		724			214			2,358

See accompanying notes.

19

STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
(unaudited)
Amounts in thousands	Short-Term Income Account							SmallCap Blend Account
		Period		Year Ended				Period		Year Ended
	Ended June			December				Ended June		December
		30, 2015			31, 2014			30, 2015	(a)		31, 2014
Operations
Net investment income (loss)	$	1,970		$	4,463		$	201		$	103
Net realized gain (loss) on investments, foreign currencies, and futures		(58	)		1,551			9,603			7,009
Change in unrealized appreciation/depreciation of investments, futures,
and translation of assets and liabilities in foreign currencies		135			(2,109	)		(1,364	)		(4,096	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,047			3,905			8,440			3,016
Dividends and Distributions to Shareholders
From net investment income:
Class 1		–			(4,262	)		–			(224	)
Class 2		–			(12	)		–			N/A
From net realized gain on investments:
Class 1		–			–			–			(1,866	)
Total Dividends and Distributions		–			(4,274	)		–			(2,090	)
Capital Share Transactions
Shares sold:
Class 1		12,295			53,517			4,252			5,643
Class 2		913			96			1,496			N/A
Shares issued in acquisition:
Class 1		N/A			N/A			166,992			N/A
Class 2		N/A			N/A			4,615			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			4,262			–			2,090
Class 2		–			12			–			N/A
Shares redeemed:
Class 1		(28,746	)		(46,298	)		(11,408	)		(8,762	)
Class 2		(226	)		(32	)		(1,380	)		N/A
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(15,764	)		11,557			164,567			(1,029	)
Total Increase (Decrease)		(13,717	)		11,188			173,007			(103	)
Net Assets
Beginning of period		268,587			257,399			64,682			64,785
End of period (including undistributed net investment income as set forth below)	$	254,870		$	268,587		$	237,689		$	64,682
Undistributed (Overdistributed) Net Investment Income (Loss)	$	6,426		$	4,456		$	316		$	115
Increase (Decrease) in Capital Shares
Shares sold:
Class 1		4,720			20,614			289			414
Class 2		351			38			99			N/A
Shares issued in acquisition:
Class 1		N/A			N/A			11,187			N/A
Class 2		N/A			N/A			309			N/A
Shares issued in reinvestment of dividends and distributions:
Class 1		–			1,652			–			156
Class 2		–			4			–			N/A
Shares redeemed:
Class 1		(11,039	)		(17,795	)		(760	)		(643	)
Class 2		(87	)		(12	)		(93	)		N/A
Net Increase (Decrease)		(6,055	)		4,501			11,031			(73	)

^(a)      Period from February 17, 2015, date operations commenced, through June 30, 2015 for Class 2 shares.

See accompanying notes.

20

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

1. Organization

Principal Variable Contracts 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 Diversified International Account, Equity Income Account, Government & High Quality Bond Account, Income Account, LargeCap Growth Account, MidCap Account, Money Market Account, Principal Capital Appreciation Account, Real Estate Securities Account, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Account, and SmallCap Blend Account, (known as the “Accounts”), are presented herein.

Each of the Accounts is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946, Financial Services - Investment Companies. Each of the Accounts was an investment company at all times during the period. The Accounts have not provided financial support, and are not contractually required to provide financial support to any investee.

Effective February 17, 2015, the initial purchase of $10,000 of Class 2 shares of SmallCap Blend Account was made by Principal Management Corporation (the “Manager”).

Effective April 17, 2015, Principal Capital Appreciation Account acquired all the assets and assumed all the liabilities of LargeCap Blend Account II pursuant to a plan of acquisition approved by shareholders on April 10, 2015. The purpose of the acquisition was to combine two accounts managed by Principal Management Corporation (the “Manager”) with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 16,768,000 shares from LargeCap Blend Account II for 6,133,000 shares valued at $140,231,000 of Principal Capital Appreciation Account at an approximate exchange rate of .37 for Class 1 and Class 2 shares. The investment securities of LargeCap Blend Account II, with a fair value of approximately $133,987,000 and a cost of $121,386,000, were the primary asset acquired by Principal Capital Appreciation Account on April 17, 2015. For financial reporting purposes, assets received and shares issued by Principal Capital Appreciation Account were recorded at fair value; however the cost basis of the investments received from LargeCap Blend Account II was carried forward to align ongoing reporting of Principal Capital Appreciation Account. The aggregate net assets of LargeCap Blend Account II and Principal Capital Appreciation Account immediately prior to the acquisition in accordance with U.S. GAAP were approximately $140,231,000 ($1,448,000 of accumulated realized losses and $12,601,000 of unrealized appreciation) and $40,552,000, respectively. The aggregate net assets of Principal Capital Appreciation Account immediately following the acquisition were $180,783,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.

Assuming the acquisition had been completed on January 1, 2015, the beginning of the fiscal year for Principal Capital Appreciation Account, Principal Capital Appreciation Account’s pro forma results of operations for the period ended June 30, 2015, would have been $921,000 of net investment income, $2,416,000 of net realized and unrealized gain on investments, and $3,337,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of LargeCap Blend Account II that have been included in Principal Capital Appreciation Account’s statement of operations since April 17, 2015.

Effective April 17, 2015, SmallCap Blend Account acquired all the assets and assumed all the liabilities of SmallCap Growth Account II and SmallCap Value Account I pursuant to a plan of acquisition approved by shareholders on April 10, 2015. The purpose of the acquisition was to combine three accounts managed by Principal Management Corporation with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 4,083,000 and 7,295,000 shares from SmallCap Growth Account II and SmallCap Value Account I, respectively for 4,587,000 and 6,909,000 shares valued at $68,472,000 and $103,135,000 of SmallCap Blend Account at an approximate exchange rate of 1.13 and 1.10 for Class 1 and Class 2 shares and .95 and .94 for Class 1 and Class 2 shares, respectively. The investment securities of SmallCap Growth Account II, with a fair value of approximately $65,319,000 and a cost of $64,126,000, and the investment securities of SmallCap Value Account I with a fair value of approximately $98,490,000 and a cost of $95,480,000 were the primary asset acquired by SmallCap Blend Account on April 17, 2015. For financial reporting purposes, assets received and shares issued by SmallCap Blend Account were recorded at fair value; however the cost basis of the investments received from SmallCap Growth Account II and SmallCap Value Account I were carried forward to align ongoing reporting of SmallCap Blend Account. The aggregate net assets of SmallCap Growth Account II, SmallCap Value Account I and SmallCap Blend Account immediately prior to the acquisition in accordance with U.S. GAAP were approximately $68,471,000 ($194,000 of accumulated realized gain and $1,193,000 of unrealized appreciation) $103,136,000 ($665,000 of accumulated realized losses and $3,010,000 of unrealized appreciation) and $68,436,000, respectively. The aggregate net assets of SmallCap Blend Account immediately following the acquisition were $240,043,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.

21

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

1. Organization (Continued)

Assuming the acquisition had been completed on January 1, 2015, the beginning of the fiscal year for SmallCap Blend Account, SmallCap Blend Account’s pro forma results of operations for the period ended June 30, 2015, would have been $287,000 of net investment income, $13,995,000 of net realized and unrealized gain on investments, and $14,282,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of SmallCap Growth Account II and SmallCap Value Account I that have been included in SmallCap Blend Account’s statement of operations since April 17, 2015.

2. Significant Accounting Policies

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) invest in combinations of other series of Principal Variable Contracts Funds, Inc. and Principal Funds, Inc. (the “Underlying Funds”). Investments in the Underlying Funds are valued at the closing net asset value per share of each Underlying Fund on the day of valuation.

The Accounts (with the exception of Money Market Account and SAM Portfolios) value securities 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, an evaluated bid price or, in the case of certain credit default swaps, a mean 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. 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 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 Accounts’ net asset values are reflected in the Accounts’ net asset values and these securities are valued at fair value as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors. Many factors 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 ADRs, futures contracts, industry indices, general indices and foreign currencies.

To the extent the Accounts invest in foreign securities listed on foreign exchanges which trade on days on which the Accounts do not determine their net asset values, for example weekends and other customary national U.S. holidays, the Accounts’ net asset values could be significantly affected on days when the shareholders cannot purchase or redeem shares.

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 Accounts 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.

Money Market Account values its securities, other than holdings of other publicly traded investment funds, at amortized cost as permitted under Rule 2a-7 of the Investment Company Act of 1940. Other publicly traded investment funds are valued at the funds’ net asset value. Under the amortized cost method, a security is valued by applying a constant yield to maturity of the difference between the principal amount due at maturity and the cost of the security to the Account.

22

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

2. Significant Accounting Policies (Continued)

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 account 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 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 Account held securities denominated in foreign currencies that exceeded 5% of net assets of the Account:

Diversified International Account

Euro	19.5	%
Japanese Yen	16.5
British Pound	14.1
Canadian Dollar	11.5
Swiss Franc	6.9

Income and Investment Transactions. The Accounts 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 Accounts 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 Accounts are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized over the lives of the respective securities. The Accounts allocate daily all income and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding (number of settled shares outstanding for Money Market Account) of each class.

Expenses. Expenses directly attributed to a particular Account are charged to that Account. Other Account expenses not directly attributed to an Account are apportioned among the registered investment companies managed by the Manager.

Management fees are allocated daily to each class of shares based upon the relative proportion of the value of shares outstanding (number of settled shares outstanding for Money Market Account) 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 that each of the SAM Portfolios bears directly, each of the SAM Portfolios indirectly bear a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense levels and each of the SAM Portfolios may own different proportions of Underlying Funds at different times, the amount of expense incurred indirectly by each of the SAM Portfolios will vary. Expenses included in the statements of operations of the SAM Portfolios reflect the expenses of each SAM Portfolio and do not include any expenses associated with the Underlying Funds.

23

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

2. Significant Accounting Policies (Continued)

Dividends and Distributions to Shareholders. With respect to Money Market Account, all net investment income and any realized gains from investment transactions are declared as dividends daily to shareholders of record as of that day. Dividends and distributions to shareholders of the other accounts 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. generally accepted accounting principles. These differences are primarily due to differing treatments for net operating losses, mortgage-backed securities, certain defaulted securities, expiring capital loss carry forwards, certain preferred securities, redemptions-in-kind, amortization of premiums and discounts, futures contracts, sales of Passive Foreign Investment Companies, losses deferred due to wash sales, swap agreements, and foreign currency transactions. Permanent book and tax basis differences are reclassified within the capital accounts based on federal tax-basis treatment; temporary differences do not require reclassification. Distributions which exceed current and accumulated earnings and profits for federal income tax purposes are reported as return of capital distributions.

Real Estate Securities Account receives distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the Account. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates must be used in reporting the character of its income and distributions for financial statement purposes.

Federal Income Taxes. No provision for federal income taxes is considered necessary because each account is qualified 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 Accounts’ 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 period ended June 30, 2015, the Accounts did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years from 2011-2014. No examinations are in progress at this time.

Foreign Taxes. Certain of the Accounts are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Accounts as a reduction of income. These amounts are shown as withholding tax on foreign dividends on the statements of operations.

Gains realized upon disposition of certain foreign securities held by the Accounts may be subject to capital gains tax, payable prior to repatriation of sale proceeds. The tax is computed on certain net realized gains and, if any, is shown on the statement of operations. Realized losses in excess of gains may be carried forward to offset future gains. In addition, the Accounts accrue an estimated deferred tax liability for future gains on certain foreign securities. Any accrued tax liability is shown on the statement of assets and liabilities. At June 30, 2015, Diversified International Account had no foreign tax refund receivable and had a deferred tax liability of $26,000 relating to foreign securities.

3. Operating Policies

Borrowings. Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Accounts and other registered investment companies managed by the Manager may participate in an interfund lending facility (“Facility”). The Facility allows the Accounts 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%). During the period ended June 30, 2015, Diversified International Account, MidCap Account, Real Estate Securities Account, Short-Term Income Account, and SmallCap Blend Account each borrowed from the Facility. Diversified International Account, Equity Income Account, Government & High Quality Bond Account, Income Account, Real Estate Securities Account, and SmallCap Blend Account each loaned to the Facility. The interest expense associated with these borrowings is included in other expenses on the statements of operations. The interest received is included in interest on the statements of operations.

24

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

In addition, the Accounts 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 $75 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 plus 1.00%. Additionally, a commitment fee is charged at an annual rate of .10% on the amount of the line of credit. The Accounts did not borrow against the line of credit during the period ended June 30, 2015.

Counterparties. The Accounts may be exposed to counterparty risk, or the risk that another party with which the Accounts have unsettled or open transactions will fail to perform on their commitment. To the extent that unpaid amounts owed to the Accounts exceed a predetermined threshold agreed to with the counterparty, such counterparty shall advance collateral to the Accounts in the form of cash or cash equivalents equal in value to the unpaid amount owed to the Accounts. If the unpaid amount owed to the Accounts subsequently decreases, the Accounts would be required to return all or a portion of the collateral.

Master Agreements may also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions governed under the relevant master agreement with a counterparty exceeds a specified threshold.

The financial instruments that are subject to Master 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 also include collateral provisions. Collateral received and pledged are generally settled daily with each counterparty.

Futures Contracts. The Accounts 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 Accounts (with the exception of Money Market Account and SAM Portfolios) may enter into futures contracts 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 contracts, an account 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 account as a variation margin receivable or payable on financial derivative instruments. During the period the futures contracts are open, daily changes in the fair value of the contracts are recognized as unrealized gains or losses. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments on the statements of assets and liabilities. When the contracts are closed, the account recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the account’s cost basis in the contract. There is minimal counterparty credit risk to the Accounts because futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

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 Accounts has valued the investments. This may have an adverse effect on each of the Accounts’ ability to dispose of particular illiquid securities at fair value and may limit each of the Accounts’ ability to obtain accurate market quotations for purposes of valuing the securities.

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 contracts 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.

Joint Trading Account. Certain of the Accounts may, pursuant to an exemptive order issued by the Securities and Exchange Commission, transfer uninvested funds into a joint trading account. The order permits the participating accounts’ cash balances to be deposited into a single joint account along with the cash of other registered investment companies managed by the Manager. These balances may be invested in one or more short-term instruments or repurchase agreements that are collateralized by U.S. government securities. Earnings from the joint trading account are allocated to each of the Accounts based on their pro rata participating ownership interest in the joint trading account.

25

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

Mortgage Dollar Rolls. Certain of the Accounts have entered into mortgage-dollar-roll transactions on “to-be-announced” securities (“TBA’s”), in which the Account sells mortgage-backed securities and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are invested in additional securities. The Account forgoes principal and interest paid on the securities, and is compensated by interest earned on the proceeds of the initial sale and by a lower price on the securities to be repurchased. The Accounts treat mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the Accounts' portfolio turnover ratio. Amounts to be received or paid in connection with open mortgage-dollar-rolls are included in Investment securities sold and Investment securities purchased on the statements of assets and liabilities.

Rebates. Subject to best execution, the Accounts may direct certain portfolio transactions to brokerage firms that, in turn, have agreed to rebate a portion of the related brokerage commission to the account in cash. Commission rebates are included as a component of realized gain from investment transactions in the statements of operations.

Repurchase Agreements. The Accounts may invest in repurchase agreements that are fully collateralized, typically by U.S. government or U.S. government agency securities. It is the Accounts’ policy that its 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 Accounts 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 Accounts could experience delays in the realization of the collateral.

Restricted Securities. Certain of the Accounts 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.

Securities Lending. To earn additional income, certain of the Accounts may lend portfolio securities to approved brokerage firms. The Accounts 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 loaned securities. The market value of the loaned securities is determined at the close of business of the Accounts and any additional required collateral is delivered to the Accounts on the next business day. The cash collateral received is usually invested in an SEC-registered money market mutual fund and the Accounts could realize a loss on such investments. Further, the Accounts could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium received for lending certain types of securities. Security lending income is shown in each account’s statement of operations. As of June 30, 2015, the Accounts had no securities on loan.

Senior Floating Rate Interests. The Accounts may invest in senior floating rate interests (bank loans). Senior floating rate interests hold the most senior position in the capital structure of a business entity (the “Borrower”), are typically 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. 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 account 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 London InterBank Offered Rate (LIBOR) or the prime rate offered by one or more major United States banks.

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.

26

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

In connection with the Senior floating rate interests, the Accounts may also enter into unfunded loan commitments (“commitments”). All or a portion of the commitments may be unfunded. The Accounts are obligated to fund these commitments at the borrower’s discretion. Therefore, the Accounts must have funds sufficient to cover its contractual obligation. These unfunded loan commitments which are marked to market daily, are footnoted in the schedules of investments, shown as a separate line item called unrealized gain or loss on unfunded loan commitments on the statements of assets and liabilities. As of June 30, 2015, the Accounts had no unfunded loan commitments outstanding.

To Be Announced Securities. The Accounts may trade portfolio securities on a “to-be-announced” (“TBA”) or when-issued basis. In a TBA or when-issued transaction, the account commits 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 account, 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. The performance and risks of each Principal LifeTime Account, SAM Portfolio, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, and Diversified Income Account (singly, “a fund of funds” and collectively, “the funds of funds”) directly correspond to the performance and risks of the underlying funds in which the fund of funds invest. By investing in many underlying funds, the funds of funds have partial exposure to the risks of many different areas of the market. The more a fund of funds allocates to stock funds, the greater the expected risk.

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 Principal LifeTime Accounts, SAM Portfolios, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Income Account, and each of the underlying funds. Principal Global Investors, LLC ("PGI") is Sub-Advisor to the Principal LifeTime Accounts and Edge Asset Management, Inc. ("Edge") is the Sub-Advisor to the SAM Portfolios. Either PGI or Edge also serves as Sub-Advisor to some or all of the underlying funds. The Manager, PGI, and Edge are committed to minimizing the potential impact of underlying fund risk on underlying funds 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.

As of June 30, 2015, the Principal LifeTime Accounts, SAM Portfolios, Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, and Diversified Income Account owned the following percentages, in the aggregate, of the outstanding shares of the underlying funds listed below:

	Total Percentage of			Total Percentage of
Account	Outstanding Shares Owned		Account	Outstanding Shares Owned
Diversified International Account	24.00	%	Income Account	96.24	%
Equity Income Account	35.73		MidCap Account	13.05	%
Government & High Quality Bond Account	41.18		Short-Term Income Account	39.28	%

U.S. Government Agencies or Government-Sponsored Enterprises. Certain of the Accounts 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 Accounts’ 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.

27

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

3. Operating Policies (Continued)

Government related guarantors (those not backed by the full faith and credit of the United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC”). FNMA is a government sponsored corporation the common stock of which is owned entirely by private stockholders. 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 FNMA are guaranteed as to the timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. 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.

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 shown in thousands):

Derivatives not accounted for	Asset Derivatives June 30, 2015	Fair	Liability Derivatives June 30, 2015		Fair
as hedging instruments	Statement of Assets and Liabilities Location	Value	Statement of Assets and Liabilities Location		Value
SmallCap Blend Account
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$ —	Payables, Net Assets Consist of Net unrealized	$	6	*
	appreciation (depreciation) of investments		appreciation (depreciation) of investments

*Includes cumulative unrealized appreciation/depreciation of futures contracts 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.

					Change in Unrealized
	Location of Gain or (Loss)		Realized Gain or (Loss)		Appreciation/(Depreciation) of
Derivatives not accounted for	on Derivatives Recognized		on Derivatives Recognized		Derivatives Recognized in Statement
as hedging instruments	in Statement of Operations		in Statement of Operations		of Operations
SmallCap Blend Account
Equity contracts	Net realized gain (loss) from Futures	$	79	$	(44)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts

Long equity futures contracts are used to obtain market exposure for the cash balances that are maintained by certain of the Accounts and the notional values of the futures contracts will vary in accordance with the changing cash balances. The level of derivative activity disclosed in the schedules of investments is representative of the level of derivative activity used in the Accounts throughout the period ended June 30, 2015.

28

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

4. Fair Value

Fair value is defined as the price that the Accounts 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 Accounts use various valuation approaches, including market, income and/or cost approaches. A hierarchy for inputs 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 Accounts. Unobservable inputs are inputs that reflect the Accounts own assumptions about the assumptions 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. The type of securities included in Level 1 includes listed equities and listed derivatives.

Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayments speeds, credit risk, etc.). Investments which are generally included in this category include corporate bonds, senior floating rate interests, and municipal bonds.

Level 3 – Significant unobservable inputs (including the Accounts’ assumptions in determining the fair value of investments). Investments which are generally included in this category include certain corporate bonds and certain mortgage backed securities.

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 Accounts 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.

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 Account’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Accounts use prices and inputs that are current as of the measurement date.

Investments which are generally included in the Level 3 category are primarily valued using 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 such as prepayment rates, probability of default, or loss severity in the event of default. Significant increases in any of those inputs in isolation would result in a significantly lower fair value measurement.

The fair values of these entities are dependent on economic, political and other considerations. The values of the investments may be affected by significant changes in the economic conditions, changes in government policies, and other factors (e.g., natural disasters, accidents, conflicts, etc.).

Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Account’s Board of Directors. The Manager has established a Valuation Committee of senior officers and employees, with the responsibility of overseeing the pricing and valuation of all securities, including securities where market quotations are not readily available. The Valuation Committee meets monthly and reports directly to the Board of Directors. The Pricing Group who reports to the Valuation Committee relies on the established Pricing Policies to determine fair valuation. Included in the Pricing Policies is an overview of the approved valuation technique established for each asset class. The Pricing Group will consider all appropriate information available when determining fair valuation.

29

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

4. Fair Value (Continued)

The Pricing Group relies on externally provided valuation inputs to determine the value of Level 3 securities. Security values are updated as new information becomes available. Valuation data and changes in valuation amounts are reviewed on a daily basis based on specified criteria for the security, asset class, and other factors. In addition, valuation data is periodically compared to actual transactions executed by the Accounts (i.e., purchases/sales) and differences between transaction prices and prior period valuation data are investigated based on specified tolerances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments. For example, short-term securities held in Money Market Account are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of these securities, but because the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The beginning of the period timing recognition has been adopted for the significant transfers between levels of each Account’s assets and liabilities. There were no significant purchases, sales, or transfers into or out of Level 3, except as noted in the Level 3 roll forward. There were no transfers between Level 1 and Level 2 as of June 30, 2015.

The following is a summary of the inputs used as of June 30, 2015 in valuing the Funds' securities carried at value (amounts shown in thousands):

				Level 2 - Other
		Level 1 - Quoted		Significant Observable		Level 3 - Significant
Account		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)
Diversified International Account
Common Stocks
Basic Materials	$	1,753	$	17,112	$	—	$	18,865
Communications		1,456		41,336		—		42,792
Consumer, Cyclical		15,335		48,681		—		64,016
Consumer, Non-cyclical		3,576		60,240		—		63,816
Energy		6,536		11,447		—		17,983
Financial		23,287		81,971		—		105,258
Industrial		7,149		44,073		—		51,222
Technology		1,245		16,675		—		17,920
Utilities		1,382		12,073		—		13,455
Investment Companies		1,925		—		—		1,925
	Total investments in securities $	63,644	$	333,608	$	—	$	397,252
Equity Income Account
Common Stocks*	$	578,296	$	—	$	—	$	578,296
Investment Companies		9,561		—		—		9,561
	Total investments in securities $	587,857	$	—	$	—	$	587,857
Government & High Quality Bond Account
Bonds	$	—	$	96,882	$	—	$	96,882
Investment Companies		2,428		—		—		2,428
U.S. Government & Government Agency Obligations		—		203,366		—		203,366
	Total investments in securities $	2,428	$	300,248	$	—	$	302,676
Income Account
Bonds	$	—	$	165,093	$	2,238	$	167,331
Common Stocks*		—		—		—		—
Convertible Bonds		—		3,671		—		3,671
Investment Companies		14,880		—		—		14,880
Senior Floating Rate Interests		—		454		—		454
U.S. Government & Government Agency Obligations		—		89,827		—		89,827
	Total investments in securities $	14,880	$	259,045	$	2,238	$	276,163

30

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
				Level 2 - Other
		Level 1 - Quoted	Significant Observable			Level 3 - Significant
Account		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)
LargeCap Growth Account
Common Stocks*	$	123,785	$	—	$	—	$	123,785
Investment Companies		1,620		—		—		1,620
	Total investments in securities $	125,405	$	—	$	—	$	125,405
MidCap Account
Common Stocks*	$	686,667	$	—	$	—	$	686,667
Investment Companies		965		—		—		965
	Total investments in securities $	687,632	$	—	$	—	$	687,632
Money Market Account
Bonds	$	—	$	21,153	$	—	$	21,153
Certificate of Deposit		—		7,000		—		7,000
Commercial Paper		—		201,995		—		201,995
Investment Companies		16,700		—		—		16,700
Municipal Bonds		—		19,170		—		19,170
Repurchase Agreements		—		5,040		—		5,040
	Total investments in securities $	16,700	$	254,358	$	—	$	271,058
Principal Capital Appreciation Account
Common Stocks*	$	171,597	$	—	$	—	$	171,597
Investment Companies		3,892		—		—		3,892
	Total investments in securities $	175,489	$	—	$	—	$	175,489
Real Estate Securities Account
Common Stocks*	$	151,638	$	—	$	—	$	151,638
Investment Companies		2		—		—		2
	Total investments in securities $	151,640	$	—	$	—	$	151,640
SAM Balanced Portfolio
Investment Companies	$	897,222	$	—	$	—	$	897,222
	Total investments in securities $	897,222	$	—	$	—	$	897,222
SAM Conservative Balanced Portfolio
Investment Companies	$	221,611	$	—	$	—	$	221,611
	Total investments in securities $	221,611	$	—	$	—	$	221,611
SAM Conservative Growth Portfolio
Investment Companies	$	308,148	$	—	$	—	$	308,148
	Total investments in securities $	308,148	$	—	$	—	$	308,148
SAM Flexible Income Portfolio
Investment Companies	$	234,321	$	—	$	—	$	234,321
	Total investments in securities $	234,321	$	—	$	—	$	234,321
SAM Strategic Growth Portfolio
Investment Companies	$	244,748	$	—	$	—	$	244,748
	Total investments in securities $	244,748	$	—	$	—	$	244,748
Short-Term Income Account
Bonds	$	—	$	241,145	$	5,641	$	246,786
Investment Companies		6,984		—		—		6,984
U.S. Government & Government Agency Obligations		—		540		—		540
	Total investments in securities $	6,984	$	241,685	$	5,641	$	254,310

31

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
June 30, 2015 (unaudited)
4. Fair Value (Continued)
				Level 2 - Other
		Level 1 - Quoted		Significant Observable			Level 3 - Significant
Account		Prices		Inputs			Unobservable Inputs		Totals (Level 1,2,3)
SmallCap Blend Account
Common Stocks
Basic Materials	$	1,893		$	—	$	—	$	1,893
Communications		11,127			3		—		11,130
Consumer, Cyclical		38,943			—		—		38,943
Consumer, Non-cyclical		55,180			176		—		55,356
Energy		7,450			—		—		7,450
Financial		56,360			—		—		56,360
Industrial		26,288			—		—		26,288
Technology		30,140			—		—		30,140
Utilities		6,256			—		—		6,256
Investment Companies		4,467			—		—		4,467
	Total investments in securities $	238,104		$	179	$	—	$	238,283
Liabilities
Equity Contracts**
Futures	$	(6	)	$	—	$	—	$	(6	)

*For additional detail regarding sector classifications, please see the Schedules of Investments **Futures are valued at the unrealized appreciation/(depreciation) of the instrument.

Certain detailed information is provided for those Accounts with significant investments in Level 3 securities. Quantitative information about the significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy is as follows (amounts in thousands):

			Fair Value
	Asset		at June 30,		Unobservable
Account	Type		2015	Valuation Technique	input		Input Value
Short-Term Income Account	Bonds	$	700	Indicative Market Quotations	Broker Quote	$	99.97
	Bonds		4,941	Third Party Vendor	Broker Quote		99.91 - 100.53
		$	5,641

The changes in investments measured at fair value for which Level 3 inputs have been used to determine fair value are as follows (amounts in thousands):

					Accrued
					Discounts/
					Premiums														Net Change in Unrealized
		Value	Realized		and Change				Proceeds			Transfers			Transfers		Value		Appreciation/(Depreciation)
		December	Gain/		in Unrealized				from			into Level			Out of		June 30,		on Investments Held at
Account		31, 2014	(Loss)		Gain/(Loss)		Purchases		Sales			3	*		Level 3**		2015		June 30, 2015
Short-Term Income Account
Bonds	$	2,909	$ —	$	8	$	3,750	$	(126	)	$	—		$	(900	) $	5,641	$	8
	$	2,909	$ —	$	8	$	3,750	$	(126	)	$	—		$	(900	) $	5,641	$	8

*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 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 period, there were no other Accounts which had a significant Level 3 balance. During the period, there were no significant purchases, sales or transfers into or out of Level 3, except as noted above.

32

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

5. Management Agreement and Transactions with Affiliates

Management Services. The Fund has agreed to pay investment advisory and management fees to the Manager (wholly owned by Principal Financial Services, Inc.) computed at an annual percentage rate of each account’s average daily net assets. A portion of the management fee is paid by Principal Management Corporation to the sub-advisor of each of the Accounts, some of which are affiliates of the Manager. The annual rate paid by the SAM Portfolios is based upon the aggregate average daily net assets (“aggregate net assets”) of the SAM Portfolios. The investment advisory and management fee schedule for the SAM Portfolios is .25% of aggregate net assets up to the first $1 billion and .20% of aggregate net assets over $1 billion. The annual rates used in this calculation for each of the other Accounts are as follows:

		Net Assets of Accounts (in millions)
	First $100	Next $100	Next $100	Next $100	Thereafter
Equity Income Account	.60%	.55%	.50%	.45%	.40%
MidCap Account	.65	.60	.55	.50	.45
Money Market Account	.50	.45	.40	.35	.30
Real Estate Securities Account	.90	.85	.80	.75	.70
SmallCap Blend Account	.85	.80	.75	.70	.65
		Net Assets of Accounts (in millions)
	First $250	Next $250	Next $250	Next $250	Thereafter
Diversified International Account	.85%	.80%	.75%	.70%	.65%
	Net Assets of Account (in millions)
	First $200	Next $300	Over $500
Short-Term Income Account	.50%	.45%	.40%
	Net Assets of Account (in millions)
	First $500	Over $500
Principal Capital Appreciation Account	.625%	.50%
		Net Assets of Account
	First $500	Next $500	Next $1	Next $1	Over $3
	million	million	billion	billion	billion
LargeCap Growth Account	.68%	.63%	.61%	.56%	.51%
Net Assets of Accounts (in billions)
	First $2	Over $2
Government & High Quality Bond Account	.50%	.45%
Income Account	.50	.45

The Manager has contractually agreed to reduce Short-Term Income Account’s expenses by .01% through the period ended April 30, 2016.

In addition, the Manager has voluntarily agreed to limit Money Market Account’s expenses to the extent necessary to maintain a 0% yield. The voluntary limit may be terminated at any time.

Distribution and Shareholder Servicing Fees. Class 2 shares of the Accounts bear distribution fees. The fee is computed at an annual rate of the average daily net assets attributable to Class 2 shares of each of the Accounts. Distribution fees are paid to Principal Funds Distributor, Inc., the principal distributor of the Accounts. A portion of the distribution fees may be paid to other selling dealers for providing certain services. The annual rate for Class 2 shares is .25%.

Effective June 9, 2015, Principal Funds Distributor, Inc. has contractually agreed to limit Money Market Account’s distribution fees attributable to Class 2 shares through April 30, 2016. The limit will maintain the level of distribution fees not to exceed 0% for Class 2 shares. Prior to June 9, 2015, the expense limit was voluntary.

33

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

5. Management Agreement and Transactions with Affiliates (Continued)

Affiliated Ownership. At June 30, 2015, Principal Life Insurance Company (an affiliate of the Manager) and/or one or more separate accounts sponsored by Principal Life Insurance Company owned shares of the Accounts as follows (amounts in thousands):

	Class 1	Class 2
Diversified International Account	20,010	11
Equity Income Account	12,502	35
Government & High Quality Bond Account	16,404	90
Income Account	5	—
LargeCap Growth Account	4,344	13
MidCap Account	8,996	—
Money Market Account	267,071	1,657
Principal Capital Appreciation Account	6,341	25
Real Estate Securities Account	7,147	58
SAM Balanced Portfolio	43,791	152
SAM Conservative Balanced Portfolio	15,530	174
SAM Conservative Growth Portfolio	8,404	249
SAM Flexible Income Portfolio	15,104	236
SAM Strategic Growth Portfolio	6,129	88
Short-Term Income Account	58,116	321
SmallCap Blend Account	15,056	40
6. Investment Transactions

For the period ended June 30, 2015, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments) by the Accounts were as follows (amounts shown in thousands):

		Purchases		Sales
Diversified International Account	$	95,284	$	146,093
Equity Income Account		30,309		52,905
Government & High Quality Bond Account		37,532		37,133
Income Account		16,893		24,662
LargeCap Growth Account		32,047		36,331
MidCap Account		88,750		129,348
Principal Capital Appreciation Account		8,771		12,483
Real Estate Securities Account		19,045		22,547
SAM Balanced Portfolio		68,047		113,003
SAM Conservative Balanced Portfolio		16,364		20,995
SAM Conservative Growth Portfolio		39,168		38,511
SAM Flexible Income Portfolio		17,741		19,912
SAM Strategic Growth Portfolio		53,184		48,804
Short-Term Income Account		85,462		92,214
SmallCap Blend Account		57,655		59,392

For the period ended June 30, 2015, the cost of U.S. government securities purchased and proceeds from U.S. government securities sold (not including short-term investments) by the Accounts were as follows (amounts shown in thousands):

	Purchases		Sales
Government & High Quality Bond Account $	9,345	$	10,930
Income Account	6,446		9
Short-Term Income Account	—		3,998

34

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information

Distributions to Shareholders. The federal income tax character of distributions paid for the periods ended June 30, 2015 and December 31, 2014 were as follows (amounts in thousands):

			Long-Term
	Ordinary Income		Capital Gain
	2015	2014	2015	2014*
Diversified International Account	$—	$10,568	$—	$—
Equity Income Account	—	15,602	—	—
Government & High Quality Bond Account	—	12,602	—	—
Income Account	—	12,657	—	—
LargeCap Growth Account	—	666	—	—
MidCap Account	—	3,262	—	57,283
Principal Capital Appreciation Account	—	2,271	—	5,052
Real Estate Securities Account	—	2,399	—	—
SAM Balanced Portfolio	—	29,328	—	130,737
SAM Conservative Balanced Portfolio	—	7,045	—	18,925
SAM Conservative Growth Portfolio	—	5,041	—	35,293
SAM Flexible Income Portfolio	—	9,416	—	12,090
SAM Strategic Growth Portfolio	—	4,097	—	35,588
Short-Term Income Account	—	4,274	—	—
SmallCap Blend Account	—	224	—	1,866

*The Accounts designate these distributions as long-term capital gain dividends per IRC Sec. 852(b)(3)(C).

For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.

35

NOTES TO FINANCIAL STATEMENTS

PRINCIPAL VARIABLE CONTRACTS FUNDS,INC. June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

Distributable Earnings. As of December 31, 2014, the components of distributable earnings on a federal tax basis were as follows (amounts in thousands):

														Total
		Undistributed		Undistributed					Net Unrealized		Other			Accumulated
		Ordinary		Long-Term		Accumulated			Appreciation		Temporary			Earnings
		Income		Capital Gains		Capital Loss			(Depreciation)		Differences*			(Deficit)
Diversified International Account	$	7,418	$	—	$	(110,806	)	$	56,076	$	—		$	(47,312	)
Equity Income Account		15,921		—		(5,257	)		245,356		—			256,020
Government & High Quality Bond Account		9,985		404		(22,657	)		3,618		(69	)		(8,719	)
Income Account		11,813		—		(3,382	)		14,389		(238	)		22,582
LargeCap Growth Account		172		—		(17,319	)		26,684		—			9,537
MidCap Account		4,110		70,879		—			263,243		—			338,232
Money Market Account		—		—		(10	)		—		—			(10	)
Principal Capital Appreciation Account		492		2,910		—			22,080		—			25,482
Real Estate Securities Account		2,494		4,828		—			54,690		—			62,012
SAM Balanced Portfolio		26,866		64,634		—			120,603		—			212,103
SAM Conservative Balanced Portfolio		7,192		10,037		—			19,834		—			37,063
SAM Conservative Growth Portfolio		6,857		19,168		—			35,098		—			61,123
SAM Flexible Income Portfolio		8,696		5,224		—			20,145		—			34,065
SAM Strategic Growth Portfolio		5,458		17,640		—			22,692		—			45,790
Short-Term Income Account		4,456		—		(16,745	)		567		(48	)		(11,770	)
SmallCap Blend Account		474		6,648		—			14,675		—			21,797
*Represents book-to-tax accounting differences.

Capital Loss Carryforwards. For federal income tax purposes, capital loss carryforwards are losses that can be used to offset future capital gains of an account. At December 31, 2014, the following Accounts had approximate net capital loss carryforwards as follows (amounts in thousands):

		Net Capital Loss Carryforward Expiring In:
		2016		2017		2018	Total
Diversified International Account	$	11,343	$	99,463	$	— $	110,806
Equity Income Account		—		5,257		—	5,257
Government & High Quality Bond Account		18,770		3,887		—	22,657
Income Account		—		1,798		1,584	3,382
LargeCap Growth Account		—		17,319		—	17,319
Money Market Account		6		4		—	10
Short-Term Income Account		8,447		8,298		—	16,745

Capital losses generated in taxable years beginning after the enactment date of the Regulated Investment Company Modernization Act of 2010, December 22, 2010, will be carried forward with no expiration and with the character of the loss retained. These capital losses must be fully utilized before the pre-enactment capital loss carryforwards listed in the table above.

36

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

As of December 31, 2014, the following Accounts utilized capital loss carryforwards as follows (amounts in thousands):

		Utilized
Diversified International Account	$	30,520
Equity Income Account		48,994
Government & High Quality Bond Account		756
Income Account		1,382
LargeCap Growth Account		9,406
Real Estate Securities Account		786
Short-Term Income Account		1,530

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 next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Account’s taxable year subsequent to October 31. For the taxable year ended December 31, 2014, the Accounts do not plan to defer any late-year losses.

Reclassification of Capital Accounts. The Accounts may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Accounts. The reclassifications are a result of permanent differences between 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 Accounts’ distributions may be shown in the accompanying Statement of Changes in Net Assets as from net investment income, from net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2014, the Accounts recorded reclassifications as follows (amounts in thousands):

		Accumulated			Accumulated
		Undistributed Net			Net Realized
		Investment Income			Gain on Investments			Paid in Capital
Diversified International Account	$	1,047		$	(1,047	)	$	—
Equity Income Account		(2,048	)		2,049			(1	)
Government & High Quality Bond Account		1,198			(1,198	)		—
Income Account		647			(647	)		—
MidCap Account		1,600			(1,599	)		(1	)
Principal Capital Appreciation Account		—			(113	)		113
SmallCap Blend Account		(3	)		3			—

37

NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

7. Federal Tax Information (Continued)

Federal Income Tax Basis. At June 30, 2015, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the Accounts were as follows (amounts in thousands):

		Unrealized		Unrealized			Net Unrealized		Cost for Federal
		Appreciation		(Depreciation)			Appreciation (Depreciation)		Income Tax Purposes
Diversified International Account	$	75,664	$	(16,404	)	$	59,260	$	337,992
Equity Income Account		232,026		(15,358	)		216,668		371,189
Government & High Quality Bond Account		6,453		(5,512	)		941		301,735
Income Account		13,279		(3,255	)		10,024		266,139
LargeCap Growth Account		31,290		(1,114	)		30,176		95,229
MidCap Account		246,115		(7,407	)		238,708		448,924
Money Market Account		—		—			—		271,058
Principal Capital Appreciation Account		37,764		(4,458	)		33,306		142,183
Real Estate Securities Account		39,791		(2,015	)		37,776		113,864
SAM Balanced Portfolio		130,836		(2,773	)		128,063		769,159
SAM Conservative Balanced Portfolio		22,576		(680	)		21,896		199,715
SAM Conservative Growth Portfolio		41,622		(1,267	)		40,355		267,793
SAM Flexible Income Portfolio		20,772		(770	)		20,002		214,319
SAM Strategic Growth Portfolio		28,614		(1,800	)		26,814		217,934
Short-Term Income Account		1,841		(1,139	)		702		253,608
SmallCap Blend Account		27,018		(9,470	)		17,548		220,735

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.

38

Schedule of Investments
Diversified International Account
June 30, 2015 (unaudited)
COMMON STOCKS - 99.15%	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held   Value (000's)
Advertising - 0.36%				Commercial Services - 0.83%
WPP PLC	64,253	$	1,442	Ashtead Group PLC	113,202	$	1,951
				TAL Education Group ADR (b)	38,525		1,360
					$		3,311
Aerospace & Defense - 1.19%
Kawasaki Heavy Industries Ltd	373,000		1,738	Computers - 1.13%
Safran SA	28,650		1,947	CGI Group Inc (b)	31,842		1,245
Thales SA	17,621		1,065	TDK Corp	42,300		3,239
	$		4,750		$		4,484
Agriculture - 0.41%				Diversified Financial Services - 2.00%
KT&G Corp	19,144		1,627	Intermediate Capital Group PLC	105,121		908
				Macquarie Group Ltd	61,369		3,845
				ORIX Corp	162,780		2,417
Airlines - 1.00%				Paragon Group of Cos PLC/The	122,944		800
easyJet PLC	42,148		1,024
Ryanair Holdings PLC ADR	41,414		2,955		$		7,970
	$		3,979	Electric - 2.58%
				Enel SpA	599,001		2,715
Automobile Manufacturers - 3.94%				Iberdrola SA	453,576		3,062
Daimler AG	39,626		3,610	Korea Electric Power Corp	55,280		2,260
Maruti Suzuki India Ltd (a)	26,111		1,716
Renault SA	28,493		2,987	Tenaga Nasional BHD	668,400		2,239
Toyota Motor Corp	110,800		7,415		$		10,276
	$		15,728	Electrical Components & Equipment - 0.37%
				Mabuchi Motor Co Ltd	23,600		1,493
Automobile Parts & Equipment - 1.99%
Bridgestone Corp	62,200		2,299
Continental AG	8,351		1,977	Electronics - 3.94%
Valeo SA	23,182		3,667	Alps Electric Co Ltd	103,700		3,198
	$		7,943	Hon Hai Precision Industry Co Ltd	921,044		2,894
				Hoya Corp	73,500		2,944
Banks - 13.06%				Murata Manufacturing Co Ltd	17,800		3,106
Axis Bank Ltd	246,122		2,158	Omron Corp	65,100		2,828
Bank of Kyoto Ltd/The	80,000		920	SCREEN Holdings Co Ltd	116,000		730
Bank of Montreal	39,800		2,358		$		15,700
China Construction Bank Corp	1,676,000		1,529
Commonwealth Bank of Australia	53,828		3,530	Engineering & Construction - 1.43%
Danske Bank A/S	84,791		2,493	Acciona SA	12,023		911
DBS Group Holdings Ltd	130,800		2,007	Lend Lease Group	127,196		1,471
DNB ASA	148,523		2,473	Promotora y Operadora de Infraestructura	75,600		809
ICICI Bank Ltd ADR	208,150		2,169	SAB de CV (b)
KBC Groep NV	23,677		1,587	Skanska AB	53,263		1,079
Mediobanca SpA	176,759		1,733	Vinci SA	24,539		1,424
Mitsubishi UFJ Financial Group Inc	613,500		4,414		$		5,694
Mizuho Financial Group Inc	1,034,200		2,238
Natixis SA	466,418		3,366	Food - 2.69%
Nordea Bank AB	245,236		3,059	Delhaize Group	20,945		1,704
Oversea-Chinese Banking Corp Ltd	215,200		1,625	Ezaki Glico Co Ltd	17,700		879
Royal Bank of Canada	75,950		4,645	Greencore Group PLC	204,707		1,011
Sumitomo Mitsui Financial Group Inc	56,600		2,520	Gruma SAB de CV	98,900		1,276
Svenska Handelsbanken AB	109,674		1,601	JBS SA	178,600		940
Toronto-Dominion Bank/The	104,942		4,456	Nestle SA	68,196		4,921
Yes Bank Ltd	89,086		1,179		$		10,731
	$		52,060	Forest Products & Paper - 1.08%
Beverages - 1.40%				Mondi PLC	80,522		1,733
Anheuser-Busch InBev NV	43,069		5,183	Smurfit Kappa Group PLC	28,158		776
Carlsberg A/S	4,460		404	Stora Enso OYJ	174,166		1,795
	$		5,587		$		4,304
Biotechnology - 0.60%				Gas - 0.80%
CSL Ltd	20,168		1,345	Gas Natural SDG SA	79,131		1,797
Genmab A/S (b)	12,074		1,049	Keyera Corp	41,400		1,382
	$		2,394		$		3,179
Building Materials - 0.78%				Hand & Machine Tools - 0.31%
CRH PLC	68,136		1,921	Fuji Electric Co Ltd	287,000		1,234
Kingspan Group PLC	48,607		1,174
	$		3,095	Healthcare - Products - 0.52%
				Coloplast A/S	31,488		2,065
Chemicals - 1.83%
Evonik Industries AG	23,470		896
Givaudan SA (b)	872		1,510	Healthcare - Services - 0.98%
Lonza Group AG (b)	12,080		1,614	Fresenius SE & Co KGaA	29,636		1,903
Potash Corp of Saskatchewan Inc	56,600		1,753	Netcare Ltd	254,135		800
Yara International ASA	29,479		1,536	Ramsay Health Care Ltd	25,535		1,209
	$		7,309		$		3,912

See accompanying notes.

39

Schedule of Investments
Diversified International Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held    Value (000's)
Home Builders - 2.76%				Oil & Gas (continued)
Barratt Developments PLC	293,267	$	2,829	Statoil ASA	96,185	$	1,720
Persimmon PLC (b)	80,681		2,503	Suncor Energy Inc	80,566		2,219
Sekisui House Ltd	129,300		2,053	TOTAL SA	40,625		1,993
Taylor Wimpey PLC	1,242,626		3,624		$		15,866
	$		11,009
				Pharmaceuticals - 8.57%
Home Furnishings - 0.71%				Actelion Ltd (b)	10,329		1,513
Howden Joinery Group PLC	198,741		1,613	Bayer AG	31,725		4,443
Steinhoff International Holdings Ltd	193,316		1,224	BTG PLC (b)	117,747		1,161
	$		2,837	Novartis AG	83,871		8,250
				Novo Nordisk A/S	104,045		5,709
Insurance - 5.62%				Roche Holding AG	28,874		8,096
BB Seguridade Participacoes SA	220,100		2,424	Shire PLC	62,441		5,017
Direct Line Insurance Group PLC	575,220		3,036		$		34,189
Fairfax Financial Holdings Ltd	2,746		1,354
Hannover Rueck SE	36,832		3,565	Pipelines - 0.53%
Legal & General Group PLC	586,498		2,293	TransCanada Corp	52,100		2,117
PICC Property & Casualty Co Ltd	450,000		1,025
Prudential PLC	117,550		2,833
Sampo Oyj	37,828		1,783	Private Equity - 0.51%
Sanlam Ltd	244,321		1,330	3i Group PLC	251,278		2,039
Tokio Marine Holdings Inc	66,200		2,753
	$		22,396	Real Estate - 2.84%
				Brookfield Asset Management Inc	168,328		5,881
Internet - 1.07%				Cheung Kong Property Holdings Ltd (b)	241,500		2,003
Tencent Holdings Ltd	139,900		2,797	Deutsche Annington Immobilien SE	40,237		1,136
Vipshop Holdings Ltd ADR (b)	65,420		1,456
				Deutsche Wohnen AG	61,316		1,406
	$		4,253	Wheelock & Co Ltd	178,000		908
Investment Companies - 1.81%					$		11,334
CK Hutchison Holdings Ltd	263,000		3,866	REITS - 0.56%
Investor AB	89,703		3,345	Mirvac Group	858,204		1,223
	$		7,211	Segro PLC	160,978		1,025
Iron & Steel - 0.80%					$		2,248
APERAM SA (b)	27,882		1,129
				Retail - 5.34%
JFE Holdings Inc	93,600		2,074	Alimentation Couche-Tard Inc	152,252		6,513
	$		3,203	Dollarama Inc	72,300		4,382
Leisure Products & Services - 0.31%				Mr Price Group Ltd	66,140		1,362
Yamaha Motor Co Ltd	55,600		1,215	Next PLC	17,766		2,079
				Pandora A/S	44,498		4,775
				Travis Perkins PLC	21,413		709
Machinery - Construction & Mining - 0.96%				Wal-Mart de Mexico SAB de CV	607,900		1,485
Mitsubishi Electric Corp	296,000		3,822		$		21,305
				Semiconductors - 2.41%
Machinery - Diversified - 0.38%				ams AG	32,674		1,429
Sumitomo Heavy Industries Ltd	263,000		1,532	ARM Holdings PLC	123,030		2,013
				Dialog Semiconductor PLC (b)	44,010		2,380
Media - 1.57%				Taiwan Semiconductor Manufacturing Co Ltd	835,140		3,799
ITV PLC	1,105,447		4,574		$		9,621
Mediaset Espana Comunicacion SA	63,699		836
Numericable-SFR SAS (b)	15,639		832	Software - 0.96%
				HCL Technologies Ltd	171,611		2,477
	$		6,242	UBISOFT Entertainment (b)	74,807		1,338
Metal Fabrication & Hardware - 0.42%					$		3,815
SKF AB	73,861		1,685
				Telecommunications - 7.74%
				Bharti Infratel Ltd	161,425		1,132
Mining - 1.02%				BT Group PLC	582,985		4,128
BHP Billiton Ltd	88,162		1,798	China Mobile Ltd	246,000		3,147
BHP Billiton PLC	70,611		1,388	China Telecom Corp Ltd	3,672,000		2,151
South32 Ltd (b)	555,217		767	Deutsche Telekom AG	218,148		3,761
South32 Ltd (b)	70,611		96	Hellenic Telecommunications Organization	87,811		700
	$		4,049	SA (a)
				KDDI Corp	117,900		2,845
Miscellaneous Manufacturing - 1.47%				MTN Group Ltd	90,661		1,703
FUJIFILM Holdings Corp	81,500		2,909	Nippon Telegraph & Telephone Corp	82,200		2,977
Largan Precision Co Ltd	26,000		2,968	Orange SA	195,320		3,019
	$		5,877	Proximus	63,906		2,261
Oil & Gas - 3.98%				SK Telecom Co Ltd	10,387		2,324
Caltex Australia Ltd	56,119		1,377	Telekom Malaysia Bhd	408,900		707
Canadian Natural Resources Ltd	81,000		2,200		$		30,855
PetroChina Co Ltd	1,652,000		1,840	Transportation - 1.59%
Royal Dutch Shell PLC - A Shares	59,625		1,686	Canadian National Railway Co	68,676		3,962
Royal Dutch Shell PLC - B Shares	99,440		2,831

See accompanying notes.

40

				Schedule of Investments
		Diversified International Account
				June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held	Value (000			's)
Transportation (continued)
Canadian Pacific Railway Ltd	9,268		$	1,484
Euronav NV	60,357			894
		$		6,340
TOTAL COMMON STOCKS		$		395,327
INVESTMENT COMPANIES - 0.48%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 0.48%
BlackRock Liquidity Funds FedFund Portfolio	1,924,599			1,925
TOTAL INVESTMENT COMPANIES		$		1,925
Total Investments		$		397,252
Other Assets in Excess of Liabilities, Net - 0.37%		$		1,495
TOTAL NET ASSETS - 100.00%		$		398,747

(a)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $2,416 or 0.61% of net assets.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Country	Percent
Japan	16.49	%
Canada	11.54	%
United Kingdom	10.68	%
Switzerland	6.49	%
Germany	6.26	%
France	5.44	%
Australia	4.53	%
Denmark	4.14	%
Ireland	3.22	%
China	3.05	%
Belgium	2.93	%
India	2.71	%
Sweden	2.70	%
Hong Kong	2.49	%
Taiwan, Province Of China	2.42	%
South Africa	2.05	%
Spain	1.66	%
Korea, Republic Of	1.56	%
Norway	1.44	%
Netherlands	1.13	%
Italy	1.11	%
Singapore	0.91	%
Finland	0.90	%
Mexico	0.89	%
Brazil	0.85	%
Malaysia	0.74	%
United States	0.48	%
Austria	0.36	%
Luxembourg	0.28	%
Greece	0.18	%
Other Assets in Excess of Liabilities, Net	0.37	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

41

Schedule of Investments
Equity Income Account
June 30, 2015 (unaudited)
COMMON STOCKS - 97.91%	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held    Value (000's)
Aerospace & Defense - 2.25%				Gas - 1.10%
Lockheed Martin Corp	36,597	$	6,804	Sempra Energy	65,455	$	6,476
Raytheon Co	68,011		6,507
	$		13,311	Healthcare - Products - 2.01%
Apparel - 1.44%				Becton Dickinson and Co	30,371		4,302
VF Corp	122,191		8,522	Medtronic PLC	102,126		7,568
					$		11,870
Automobile Manufacturers - 1.31%				Insurance - 6.17%
PACCAR Inc	121,331		7,742	ACE Ltd	111,628		11,350
				Allstate Corp/The	82,054		5,323
				Chubb Corp/The	42,399		4,034
Automobile Parts & Equipment - 2.54%				MetLife Inc	246,544		13,804
Autoliv Inc	65,691		7,669	Swiss Re AG ADR	87,960		1,955
Johnson Controls Inc	148,184		7,340		$		36,466
	$		15,009
				Machinery - Diversified - 2.43%
Banks - 9.81%				Deere & Co	147,615		14,326
Australia & New Zealand Banking Group Ltd	65,409		1,619
ADR
Bank of Nova Scotia/The	97,288		5,023	Media - 0.40%
Grupo Financiero Santander Mexico SAB de	172,851		1,582	Walt Disney Co/The	20,725		2,366
CV ADR
JP Morgan Chase & Co	209,197		14,175	Mining - 0.87%
M&T Bank Corp	42,062		5,255	BHP Billiton Ltd ADR	117,712		4,792
PNC Financial Services Group Inc/The	120,221		11,499	South32 Ltd ADR (a)	46,752		314
US Bancorp/MN	192,628		8,360		$		5,106
Wells Fargo & Co	185,279		10,420
	$		57,933	Miscellaneous Manufacturing - 2.05%
				3M Co	21,396		3,301
Beverages - 0.69%				Parker-Hannifin Corp	75,603		8,795
Coca-Cola Co/The	103,965		4,078		$		12,096
				Oil & Gas - 10.13%
Chemicals - 1.49%				Chevron Corp	68,995		6,656
Air Products & Chemicals Inc	25,783		3,528	Cimarex Energy Co	38,380		4,234
EI du Pont de Nemours & Co	82,799		5,295	Crescent Point Energy Corp	292,022		5,992
	$		8,823	Exxon Mobil Corp	93,419		7,772
Computers - 4.35%				Marathon Oil Corp	206,592		5,483
Accenture PLC - Class A	13,380		1,295	Marathon Petroleum Corp	213,134		11,149
Apple Inc	123,529		15,494	Occidental Petroleum Corp	130,764		10,170
EMC Corp/MA	234,058		6,177	Royal Dutch Shell PLC - B shares ADR	146,200		8,385
International Business Machines Corp	16,885		2,746		$		59,841
	$		25,712	Pharmaceuticals - 11.22%
Distribution & Wholesale - 0.77%				Abbott Laboratories	207,732		10,196
Genuine Parts Co	50,956		4,562	AbbVie Inc	28,592		1,921
				GlaxoSmithKline PLC ADR	46,520		1,938
				Johnson & Johnson	62,682		6,109
Diversified Financial Services - 5.75%				Merck & Co Inc	199,529		11,359
BlackRock Inc	31,953		11,055	Novartis AG ADR	69,023		6,788
Discover Financial Services	172,757		9,954	Pfizer Inc	313,894		10,525
FNF Group	349,852		12,941	Roche Holding AG ADR	267,333		9,375
	$		33,950	Teva Pharmaceutical Industries Ltd ADR	136,370		8,059
Electric - 4.49%					$		66,270
Eversource Energy	144,553		6,564	Pipelines - 2.99%
NextEra Energy Inc	56,748		5,563	EnterpriseProducts Partners LP	228,369		6,826
WEC Energy Group Inc	144,063		6,479	Kinder Morgan Inc/DE	282,220		10,834
Xcel Energy Inc	246,499		7,932		$		17,660
	$		26,538
				Private Equity - 1.48%
Electrical Components & Equipment - 0.47%				KKR & Co LP	382,254		8,734
Emerson Electric Co	50,462		2,797
				REITS - 3.94%
Electronics - 1.23%				American Capital Agency Corp	280,598		5,155
Garmin Ltd	59,172		2,600	Annaly Capital Management Inc	616,906		5,669
Honeywell International Inc	45,633		4,653	Digital Realty Trust Inc	186,969		12,467
	$		7,253		$		23,291
Food - 2.34%				Retail - 2.16%
Kraft Foods Group Inc	49,725		4,234	Costco Wholesale Corp	26,205		3,539
Kroger Co/The	132,150		9,582	Starbucks Corp	127,920		6,859
	$		13,816	Tiffany & Co	25,821		2,370
					$		12,768

See accompanying notes.

42

				Schedule of Investments
				Equity Income Account
				June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held	Value (000			's)
Semiconductors - 4.86%
Applied Materials Inc	376,494		$	7,236
Maxim Integrated Products Inc	155,842			5,388
Microchip Technology Inc	199,524			9,463
Taiwan Semiconductor Manufacturing Co Ltd	291,715			6,625
ADR
		$		28,712
Software - 0.87%
Microsoft Corp	116,029			5,123
Telecommunications - 2.29%
BCE Inc	184,387			7,837
Verizon Communications Inc	121,607			5,668
		$		13,505
Toys, Games & Hobbies - 1.98%
Hasbro Inc	156,030			11,669
Transportation - 2.03%
Norfolk Southern Corp	51,678			4,515
Union Pacific Corp	43,895			4,186
United Parcel Service Inc	33,747			3,270
		$		11,971
TOTAL COMMON STOCKS		$		578,296
INVESTMENT COMPANIES - 1.62%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 1.62%
BlackRock Liquidity Funds FedFund Portfolio	9,560,927			9,561
TOTAL INVESTMENT COMPANIES		$		9,561
Total Investments		$		587,857
Other Assets in Excess of Liabilities, Net - 0.47%		$		2,763
TOTAL NET ASSETS - 100.00%		$		590,620
(a) Non-Income Producing Security
Portfolio Summary (unaudited)
Sector				Percent
Financial				27.15	%
Consumer, Non-cyclical				16.26	%
Energy				13.12	%
Industrial				10.46	%
Consumer, Cyclical				10.20	%
Technology				10.08	%
Utilities				5.59	%
Communications				2.69	%
Basic Materials				2.36	%
Exchange Traded Funds				1.62	%
Other Assets in Excess of Liabilities, Net				0.47	%
TOTAL NET ASSETS				100.00	%

See accompanying notes.

43

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 0.80%			Shares Held                  Value (000's)						Principal
							BONDS (continued)			Amount (000's)         Value (000's)
	Publicly Traded Investment Fund - 0.80%
	BlackRock Liquidity Funds FedFund Portfolio			2,427,094	$	2,428	Mortgage Backed Securities (continued)
							Ginnie Mae (continued)
	TOTAL INVESTMENT COMPANIES			$		2,428	0.97%, 02/16/2055 (a)		$	25,787	$	1,223
							0.98%, 09/16/2053 (a)			14,036		941
				Principal			1.01%, 10/16/2056 (a)			6,987		628
	BONDS - 31.87	%	Amount (000's)			Value (000's)	1.06%, 09/16/2053 (a)			12,469		597
	Home Equity Asset Backed Securities - 1.58%						1.29%, 03/16/2049 (a)			32,402		2,098
	ACE Securities Corp Mortgage Loan Trust						2.27%, 03/16/2046 (a)			1,624		1,617
	Series 2007-D1						2.30%, 08/16/2041			1,912		1,951
	6.34%, 02/25/2038 (a),(b)		$	3,300	$	3,203	3.00%, 09/16/2049			350		321
	6.93%, 02/25/2038 (b)			1,612		1,606	3.48%, 07/16/2045 (a)			1,877		1,952
				$		4,809	3.50%, 12/20/2034 (a)			6,795		469
							3.50%, 05/20/2039			466		486
	Mortgage Backed Securities - 30.04%						3.50%, 05/20/2043 (a)			7,590		1,513
	CFCRE Commercial Mortgage Trust 2011-
	C1						3.50%, 04/16/2044			605		588
	5.72%, 04/15/2044 (a),(b)			1,000		1,104	GS Mortgage Securities Trust 2011-GC5
							5.47%, 08/10/2044 (a),(b)			900		930
	Citigroup Mortgage Loan Trust 2009-11
	1.53%, 10/25/2035(a),(b)			133		133	JP Morgan Chase Commercial Mortgage
	Citigroup Mortgage Loan Trust 2010-10						Securities Trust 2011-C5
	2.44%, 02/25/2036 (a),(b)			1,400		1,365	5.50%, 08/15/2046 (a),(b)			2,000		2,257
	Citigroup Mortgage Loan Trust 2010-9						JP Morgan Chase Commercial Mortgage
	4.25%, 01/25/2036 (b)			1,877		1,919	Securities Trust 2013-C10
							3.37%, 12/15/2047 (a)			1,200		1,209
	COMM 2014-UBS4 Mortgage Trust
	4.78%, 08/10/2047 (a)			1,000		975	JP Morgan Chase Commercial Mortgage
	Fannie Mae Grantor Trust 2005-T1						Securities Trust 2013-C16
	0.53%, 05/25/2035 (a)			450		440	5.11%, 12/15/2046 (a)			1,800		1,964
	Fannie Mae REMICS						JP Morgan Mortgage Trust 2013-1
	2.00%, 02/25/2040 (a)			1,658		1,639	3.00%, 03/25/2043 (b)			1,716		1,671
	2.50%, 11/25/2041			1,203		1,202	JPMBB Commercial Mortgage Securities
	3.00%, 04/25/2045			1,008		897	Trust 2014-C25
	3.50%, 01/25/2028 (a)			5,716		698	4.60%, 11/15/2047 (a)			1,000		1,001
	3.50%, 01/25/2040 (a)			6,408		1,057	New Residential Mortgage Loan Trust 2014-
	3.50%, 11/25/2042 (a)			6,633		1,451	1
							5.00%, 01/25/2054 (a),(b)			1,896		2,025
	4.00%, 12/25/2039			3,423		457
	4.00%, 11/25/2042 (a)			3,428		902	New Residential Mortgage Loan Trust 2014-
	7.00%, 04/25/2032			263		302	3
							4.75%, 11/25/2054 (a),(b)			1,345		1,403
	8.70%, 12/25/2019			3		3
	Freddie Mac REMICS						Sequoia Mortgage Trust
	1.50%, 04/15/2028			2,291		2,254	2.50%, 11/25/2042			1,886		1,798
	2.50%, 11/15/2028 (a)			7,513		684	Sequoia Mortgage Trust 2013-2
							3.66%, 02/25/2043 (a)			861		871
	2.50%, 11/15/2032			1,757		1,720
	2.50%, 01/15/2043 (a)			4,346		725	Springleaf Mortgage Loan Trust 2013-3
							3.79%, 09/25/2057 (a),(b)			1,000		1,006
	2.50%, 02/15/2043			1,664		1,629
	3.00%, 11/15/2030 (a)			5,608		534	Structured Asset Sec Corp Mort Pass Through
	3.00%, 05/15/2033			2,700		2,630	Certs Series 2004-3
	3.00%, 06/15/2033 (a)			9,729		932	5.67%, 03/25/2034 (a)			708		738
	3.00%, 06/15/2040			934		957	WFRBS Commercial Mortgage Trust 2013-
	3.50%, 08/15/2040 (a)			6,024		916	C14
							4.13%, 06/15/2046 (a),(b)			1,000		923
	4.00%, 05/15/2039			4,200		4,384
	4.00%, 10/15/2040			3,000		3,122	WFRBS Commercial Mortgage Trust 2014-
	4.50%, 05/15/2037 (a)			1,110		1,168	C23
							4.52%, 10/15/2057 (a)			1,000		1,040
	Freddie Mac Strips
	1.86%, 10/15/2037(a)			21,053		1,574	WFRBS Commercial Mortgage Trust 2014-
	1.89%, 02/15/2038 (a)			17,734		1,361	LC14
	3.00%, 12/15/2032 (a)			10,352		1,439	4.34%, 03/15/2047 (a)			2,450		2,440
	Ginnie Mae									$		91,327
	0.23%, 04/16/2053 (a)			10,780		315	Other Asset Backed Securities - 0.25%
	0.53%, 01/16/2054 (a)			20,561		1,036	Chase Funding Trust Series 2004-1
	0.68%, 05/16/2053 (a)			12,193		734	0.65%, 12/25/2033 (a)			98		91
	0.70%, 03/16/2049 (a)			8,555		383	TAL Advantage V LLC
	0.71%, 04/16/2047 (a)			16,286		927	3.33%, 05/20/2039 (a),(b)			651		655
	0.74%, 11/16/2045 (a)			26,368		1,491				$		746
	0.77%, 12/16/2053 (a)			15,661		925
	0.78%, 02/16/2053 (a)			22,406		1,334	TOTAL BONDS			$		96,882
	0.79%, 04/16/2053 (a)			7,528		412	U.S. GOVERNMENT & GOVERNMENT			Principal
	0.86%, 11/16/2052 (a)			17,845		1,221	AGENCY OBLIGATIONS - 66.90%			Amount (000's)       Value (000's)
	0.86%, 10/16/2054 (a)			14,929		777	Federal Home Loan Mortgage Corporation (FHLMC) -
	0.88%, 02/16/2053 (a)			15,264		1,049	15.15	%
	0.88%, 02/16/2053 (a)			21,535		1,568	2.00%, 02/01/2028		$	1,971	$	1,961
	0.89%, 03/16/2052 (a)			8,539		661	2.00%, 03/01/2028			503		500
							2.35%, 09/01/2032 (a)			28		29
	0.94%, 01/16/2053 (a)			9,557		725
	0.96%, 02/16/2046 (a)			13,372		864	2.50%, 09/01/2027			726		741
	0.96%, 01/16/2057 (a)			8,075		672	2.50%, 02/01/2028			1,442		1,474

See accompanying notes.

44

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)     Value (000's)			AGENCY OBLIGATIONS (continued)	Amount (000's)  Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)					Federal Home Loan Mortgage Corporation (FHLMC)
(continued)					(continued)
2.50%, 03/01/2030	$	969	$	981	6.50%, 09/01/2028	$	10	$	12
3.00%, 02/01/2027		564		585	6.50%, 10/01/2028		38		44
3.00%, 08/01/2042		1,197		1,192	6.50%, 11/01/2028		8		9
3.00%, 10/01/2042		837		834	6.50%, 12/01/2028		18		21
3.00%, 10/01/2042		1,528		1,524	6.50%, 03/01/2029		8		9
3.00%, 10/01/2042		1,613		1,608	6.50%, 07/01/2031		69		79
3.00%, 05/01/2043		1,687		1,682	6.50%, 08/01/2031		6		7
3.50%, 02/01/2032		2,368		2,471	6.50%, 10/01/2031		9		10
3.50%, 04/01/2042		670		691	6.50%, 10/01/2031		19		22
3.50%, 04/01/2042		2,736		2,822	6.50%, 12/01/2031		34		39
3.50%, 05/01/2042		949		980	6.50%, 01/01/2032		117		139
3.50%, 07/01/2042		3,350		3,457	6.50%, 02/01/2032		30		35
3.50%, 09/01/2042		1,571		1,620	6.50%, 05/01/2032		74		86
3.50%, 10/01/2042		951		982	6.50%, 04/01/2035		11		12
3.50%, 02/01/2044		1,392		1,437	7.00%, 09/01/2023		13		14
4.00%, 12/01/2040		669		712	7.00%, 12/01/2023		6		7
4.00%, 07/01/2042		1,243		1,329	7.00%, 01/01/2024		7		8
4.00%, 01/01/2043		1,972		2,095	7.00%, 09/01/2027		8		9
4.00%, 06/01/2043		2,236		2,378	7.00%, 01/01/2028		64		72
4.50%, 08/01/2033		92		100	7.00%, 04/01/2028		36		43
4.50%, 07/01/2039		1,340		1,462	7.00%, 05/01/2028		5		6
4.50%, 12/01/2040		1,384		1,499	7.00%, 08/01/2028		12		12
4.50%, 05/01/2041		1,327		1,448	7.00%, 10/01/2031		15		17
4.50%, 11/01/2043		1,697		1,869	7.00%, 10/01/2031		22		26
5.00%, 10/01/2025		326		358	7.00%, 04/01/2032		107		129
5.00%, 02/01/2033		399		443	7.50%, 10/01/2030		17		21
5.00%, 06/01/2033		312		348	7.50%, 02/01/2031		12		14
5.00%, 05/01/2035		150		166	7.50%, 02/01/2031		7		8
5.00%, 07/01/2035		70		77	7.50%, 02/01/2031		15		19
5.00%, 07/01/2035		30		33	8.00%, 10/01/2030		29		34
5.00%, 07/01/2035		243		269	8.00%, 12/01/2030		2		2
5.00%, 10/01/2035		115		127	8.50%, 07/01/2029		33		37
5.50%, 04/01/2018		42		43			$		46,045
5.50%, 03/01/2024		17		19
5.50%, 03/01/2033		276		311	Federal National Mortgage Association (FNMA) - 33.91%
5.50%, 04/01/2038		28		32	2.00%, 10/01/2027		1,854		1,842
5.50%, 05/01/2038		105		118	2.00%, 10/01/2027		728		724
					2.16%, 12/01/2032 (a)		49		51
6.00%, 04/01/2017		15		16	2.25%, 12/01/2033 (a)		219		234
6.00%, 04/01/2017		20		21	2.26%, 07/01/2034 (a)		72		77
6.00%, 05/01/2017		17		18
6.00%, 07/01/2017		11		11	2.50%, 05/01/2027		1,926		1,964
6.00%, 12/01/2023		9		10	2.50%, 06/01/2027		2,276		2,321
6.00%, 05/01/2031		24		27	2.50%, 06/01/2027		1,812		1,848
6.00%, 12/01/2031		30		34	2.50%, 05/01/2028		1,152		1,174
6.00%, 09/01/2032		31		35	2.50%, 07/01/2028		856		861
6.00%, 11/01/2033		77		89	3.00%, 05/01/2028		1,509		1,568
6.00%, 11/01/2033		85		96	3.00%, 05/01/2029		1,739		1,809
6.00%, 05/01/2034		414		464	3.00%, 10/01/2042		2,446		2,450
6.00%, 05/01/2034		220		251	3.00%, 11/01/2042		2,649		2,654
6.00%, 09/01/2034		122		139	3.00%, 11/01/2042		840		840
6.00%, 02/01/2035		117		134	3.00%, 02/01/2043		1,688		1,690
6.00%, 10/01/2036 (a)		127		145	3.00%, 02/01/2043		1,745		1,748
6.00%, 03/01/2037		96		110	3.00%, 04/01/2043		1,565		1,566
6.00%, 01/01/2038 (a)		60		67	3.00%, 04/01/2045		992		990
6.00%, 01/01/2038		193		220	3.50%, 02/01/2042		1,862		1,931
6.00%, 04/01/2038		97		110	3.50%, 09/01/2042		3,249		3,361
6.50%, 11/01/2016		5		5	3.50%, 11/01/2042		2,273		2,353
6.50%, 06/01/2017		25		26	3.50%, 12/01/2042		2,320		2,402
6.50%, 06/01/2018		6		6	3.50%, 02/01/2043		834		865
6.50%, 08/01/2021		5		6	3.50%, 11/01/2044		967		1,003
6.50%, 12/01/2021		36		42	3.50%, 03/01/2045		982		1,019
6.50%, 04/01/2022		41		47	3.50%, 03/01/2045		2,362		2,447
6.50%, 05/01/2022		28		32	4.00%, 01/01/2034		1,095		1,173
6.50%, 05/01/2023		20		21	4.00%, 11/01/2040		1,131		1,205
6.50%, 04/01/2024		8		9	4.00%, 12/01/2040		959		1,022
6.50%, 04/01/2026		6		7	4.00%, 01/01/2041		2,138		2,279
6.50%, 05/01/2026		4		5	4.00%, 02/01/2041		1,914		2,039
6.50%, 05/01/2026		6		7	4.00%, 02/01/2041		2,522		2,696
6.50%, 12/01/2027		7		8	4.00%, 03/01/2041		2,584		2,747
6.50%, 01/01/2028		9		10	4.00%, 04/01/2041		2,081		2,219
6.50%, 03/01/2028		6		6	4.00%, 11/01/2041		1,052		1,117
6.50%, 09/01/2028		2		2	4.00%, 02/01/2042		1,562		1,670

See accompanying notes.

45

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT			Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's)  Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Federal National Mortgage Association (FNMA) (continued)
4.00%, 04/01/2042	$	1,193	$	1,269	6.50%, 08/01/2025		$	36	$	39
4.00%, 08/01/2043		877		939	6.50%, 02/01/2026			9		10
4.00%, 10/01/2043		856		911	6.50%, 03/01/2026			2		3
4.00%, 10/01/2043		783		838	6.50%, 05/01/2026			6		6
4.00%, 08/01/2044		938		1,005	6.50%, 06/01/2026			4		4
4.00%, 10/01/2044		2,912		3,090	6.50%, 07/01/2028			12		14
4.50%, 12/01/2019		51		53	6.50%, 09/01/2028			20		23
4.50%, 01/01/2020		198		207	6.50%, 02/01/2029			5		5
4.50%, 08/01/2039		838		921	6.50%, 03/01/2029			11		13
4.50%, 09/01/2039		1,363		1,487	6.50%, 04/01/2029			5		6
4.50%, 03/01/2042		847		927	6.50%, 06/01/2031			11		12
4.50%, 09/01/2043		1,337		1,474	6.50%, 06/01/2031			12		14
4.50%, 09/01/2043		3,120		3,440	6.50%, 09/01/2031			18		21
4.50%, 10/01/2043		1,657		1,824	6.50%, 01/01/2032			4		5
4.50%, 11/01/2043		1,825		2,012	6.50%, 04/01/2032			75		86
4.50%, 05/01/2044		1,907		2,066	6.50%, 08/01/2032			23		27
4.50%, 09/01/2044		965		1,064	6.50%, 11/01/2032			34		38
5.00%, 01/01/2018		102		107	6.50%, 11/01/2032			37		40
5.00%, 11/01/2018		88		93	6.50%, 02/01/2033			50		57
5.00%, 05/01/2033		2,383		2,682	6.50%, 07/01/2034			149		175
5.00%, 05/01/2034		428		474	6.50%, 12/01/2036			91		104
5.00%, 04/01/2035		261		291	6.50%, 07/01/2037			63		74
5.00%, 04/01/2035		193		216	6.50%, 07/01/2037			47		56
5.00%, 07/01/2035		13		14	6.50%, 02/01/2038			47		56
5.00%, 02/01/2038		641		720	7.00%, 01/01/2027			4		4
5.00%, 03/01/2038		955		1,073	7.00%, 11/01/2027			8		9
5.00%, 02/01/2040		2,682		3,033	7.00%, 08/01/2028			31		36
5.00%, 06/01/2040		755		838	7.00%, 12/01/2028			24		28
5.00%, 07/01/2041		1,257		1,404	7.00%, 10/01/2029			33		37
5.00%, 07/01/2041		2,081		2,353	7.00%, 05/01/2031			5		5
5.50%, 08/01/2017		24		25	7.00%, 11/01/2031			58		62
5.50%, 12/01/2017		31		32	7.50%, 04/01/2022			1		2
5.50%, 01/01/2018		55		57	7.50%, 11/01/2029			15		17
5.50%, 07/01/2019		44		47	8.00%, 05/01/2027			28		30
5.50%, 08/01/2019		10		10	8.00%, 09/01/2027			12		12
5.50%, 08/01/2019		83		87	8.00%, 06/01/2030			4		5
5.50%, 08/01/2019		10		11	8.50%, 10/01/2027			34		35
5.50%, 08/01/2019		21		22	9.00%, 09/01/2030			9		11
5.50%, 08/01/2019		11		12				$		103,091
5.50%, 08/01/2019		14		15	Government National Mortgage Association (GNMA) -
5.50%, 09/01/2019		59		62	7.99	%
5.50%, 10/01/2019		22		23	3.00%, 04/15/2027			1,193		1,250
5.50%, 05/01/2024		76		85	3.00%, 11/15/2042			1,691		1,713
5.50%, 05/01/2033		36		40	3.00%, 12/15/2042			3,270		3,312
5.50%, 06/01/2033		147		165	3.00%, 02/15/2043			2,486		2,529
5.50%, 06/01/2033		125		141	3.50%, 12/20/2041			1,793		1,866
5.50%, 09/01/2033		674		769	3.50%, 01/15/2043			2,017		2,105
5.50%, 02/01/2037		16		18	3.50%, 06/20/2043			1,308		1,370
5.50%, 03/01/2038		357		405	4.00%, 03/20/2040			1,735		1,850
5.50%, 03/01/2038		233		266	4.00%, 08/15/2041			1,756		1,899
5.50%, 08/01/2038		198		226	4.50%, 07/15/2040			1,532		1,678
6.00%, 08/01/2016		2		2	5.00%, 09/15/2033			11		12
6.00%, 12/01/2016		22		22	5.00%, 02/15/2034			647		722
6.00%, 08/01/2017		38		39	5.00%, 09/15/2039			101		114
6.00%, 06/01/2022		42		48	5.50%, 07/20/2033			290		331
6.00%, 11/01/2028		23		26	5.50%, 11/15/2033			58		66
6.00%, 08/01/2031		81		92	5.50%, 03/20/2034			309		353
6.00%, 12/01/2031		20		23	5.50%, 05/20/2035			277		316
6.00%, 01/01/2033		122		140	5.50%, 11/15/2038			351		403
6.00%, 02/01/2034		54		62	5.50%, 01/15/2039			520		596
6.00%, 05/01/2037		392		440	5.50%, 01/15/2039			118		135
6.00%, 07/01/2037		331		377	5.50%, 03/15/2039			249		280
6.00%, 11/01/2037		58		66	6.00%, 06/20/2024			56		64
6.00%, 12/01/2037		20		23	6.00%, 06/20/2024			9		11
6.00%, 03/01/2038		143		164	6.00%, 02/20/2026			6		7
6.00%, 08/01/2038		791		908	6.00%, 04/20/2026			11		12
6.50%, 06/01/2016		5		5	6.00%, 05/20/2026			6		6
6.50%, 08/01/2017		18		18	6.00%, 06/20/2026			7		8
6.50%, 11/01/2023		70		80	6.00%, 06/20/2026			11		13
6.50%, 05/01/2024		24		27	6.00%, 07/20/2026			5		6
6.50%, 09/01/2024		26		30
6.50%, 07/01/2025		14		16

See accompanying notes.

46

Schedule of Investments
Government & High Quality Bond Account
June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT	Principal				Portfolio Summary (unaudited)
AGENCY OBLIGATIONS (continued)	Amount (000's)     Value (000's)				Sector	Percent
Government National Mortgage Association (GNMA)					Mortgage Securities	87.09	%
(continued)					Government	9.85	%
6.00%, 09/20/2026	$	10	$	11	Asset Backed Securities	1.83	%
6.00%, 03/20/2027		23		27	Exchange Traded Funds	0.80	%
6.00%, 01/20/2028		7		8	Other Assets in Excess of Liabilities, Net	0.43	%
6.00%, 03/20/2028		5		5	TOTAL NET ASSETS	100.00	%
6.00%, 06/20/2028		28		32
6.00%, 07/20/2028		18		20
6.00%, 02/20/2029		17		20
6.00%, 03/20/2029		33		37
6.00%, 07/20/2029		34		39
6.00%, 05/20/2032 (a)		59		67
6.00%, 07/20/2033		226		263
6.50%, 12/20/2025		15		17
6.50%, 01/20/2026		23		24
6.50%, 02/20/2026		15		17
6.50%, 03/20/2031		21		24
6.50%, 04/20/2031		22		26
7.00%, 01/15/2028		3		3
7.00%, 01/15/2028		5		6
7.00%, 01/15/2028		2		2
7.00%, 01/15/2028		10		12
7.00%, 01/15/2028		1		2
7.00%, 03/15/2028		110		119
7.00%, 05/15/2028		54		60
7.00%, 01/15/2029		18		20
7.00%, 03/15/2029		7		7
7.00%, 05/15/2031		15		18
7.00%, 06/20/2031		14		18
7.00%, 09/15/2031		42		49
7.00%, 06/15/2032		221		259
7.50%, 01/15/2023		1		1
7.50%, 01/15/2023		1		1
7.50%, 01/15/2023		1		1
7.50%, 02/15/2023		2		2
7.50%, 02/15/2023		2		3
7.50%, 04/15/2023		15		17
7.50%, 06/15/2023		1		1
7.50%, 07/15/2023		1		1
7.50%, 09/15/2023		4		4
7.50%, 09/15/2023		4		4
7.50%, 10/15/2023		7		8
7.50%, 11/15/2023		7		7
8.00%, 07/15/2026		2		2
8.00%, 08/15/2026		4		5
8.00%, 01/15/2027		1		2
8.00%, 02/15/2027		1		1
8.00%, 06/15/2027		1		1
		$		24,300
U.S. Treasury - 9.85%
2.25%, 11/30/2017		5,000		5,174
3.00%, 11/15/2044		3,800		3,717
3.13%, 05/15/2021		8,000		8,557
4.25%, 11/15/2040		3,200		3,873
5.25%, 11/15/2028		3,000		3,910
6.25%, 08/15/2023		3,600		4,699
		$		29,930
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS		$		203,366
Total Investments		$		302,676
Other Assets in Excess of Liabilities, Net - 0.43%		$		1,300
TOTAL NET ASSETS - 100.00%		$		303,976

(a)	Variable Rate. Rate shown is in effect at June 30, 2015.
(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 $20,200 or 6.65% of net assets.

See accompanying notes.

47

Schedule of Investments
Income Account
June 30, 2015 (unaudited)
	COMMON STOCKS - 0.00%		Shares Held		Value (000			's)			Principal
									BONDS (continued)		Amount (000's)   Value (000's)
	Computers - 0.00%
	SONICblue Inc (a),(b)			500,000		$	—		Banks (continued)
									Wells Fargo & Co
									7.98%, 12/31/2049 (c)	$	2,000	$	2,168
	Transportation - 0.00%										$		21,680
	Trailer Bridge Inc (a),(b)			1,186			—
									Beverages - 1.16%
	TOTAL COMMON STOCKS				$		—		Anheuser-Busch InBev Worldwide Inc
	INVESTMENT COMPANIES - 5.40%		Shares Held		Value (000			's)	2.50%, 07/15/2022		750		721
									7.75%, 01/15/2019		1,000		1,187
	Publicly Traded Investment Fund - 5.40%								Innovation Ventures LLC / Innovation
	BlackRock Liquidity Funds FedFund Portfolio			14,879,932			14,880		Ventures Finance Corp
									9.50%, 08/15/2019 (d)		1,250		1,300
	TOTAL INVESTMENT COMPANIES				$		14,880				$		3,208
				Principal
	BONDS - 60.75	%	Amount (000's)		Value (000			's)	Biotechnology - 1.34%
									Amgen Inc
	Aerospace & Defense - 0.42%								3.63%, 05/15/2022		500		510
	Boeing Co/The								3.88%, 11/15/2021		2,000		2,097
	8.75%, 08/15/2021		$	850		$	1,151		Gilead Sciences Inc
									4.40%, 12/01/2021		1,000		1,092
	Airlines - 0.08%										$		3,699
	Southwest Airlines Co 1994-A Pass Through								Chemicals - 0.54%
	Trust								Airgas Inc
	9.15%, 07/01/2016			216			217		1.65%, 02/15/2018		1,000		995
									Eagle Spinco Inc
	Automobile Floor Plan Asset Backed Securities - 3.09%								4.63%, 02/15/2021		500		485
	Ally Master Owner Trust										$		1,480
	0.64%, 04/15/2018 (c)			2,000			2,001
									Commercial Services - 0.84%
	CNH Wholesale Master Note Trust
	0.79%, 08/15/2019 (c),(d)			2,000			2,002		ERAC USA Finance LLC
									6.38%, 10/15/2017 (d)		1,000		1,099
	Ford Credit Floorplan Master Owner Trust A								7.00%, 10/15/2037 (d)		1,000		1,223
	0.57%, 01/15/2018 (c)			1,000			1,000
	0.59%, 02/15/2019(c)			500			500				$		2,322
	Nissan Master Owner Trust Receivables								Computers - 0.61%
	0.49%, 02/15/2018 (c)			1,000			1,000		Apple Inc
	Volkswagen Credit Auto Master Trust								2.40%, 05/03/2023		1,750		1,674
	0.54%, 07/22/2019 (c),(d)			2,000			1,997
					$		8,500
									Credit Card Asset Backed Securities - 0.66%
	Automobile Manufacturers - 1.12%								Cabela's Credit Card Master Note Trust
	American Honda Finance Corp								0.54%, 03/16/2020 (c)		1,325		1,325
	0.77%, 10/07/2016 (c)			500			502		0.74%, 10/15/2019 (c),(d)		500		502
	Ford Motor Credit Co LLC										$		1,827
	3.98%, 06/15/2016			2,000			2,047
	General Motors Co								Diversified Financial Services - 1.80%
	4.88%, 10/02/2023			500			527		General Electric Capital Corp
									1.29%, 03/15/2023 (c)		1,000		1,005
					$		3,076		5.30%, 02/11/2021		500		562
	Banks - 7.87	%							International Lease Finance Corp
	Bank of America Corp								8.75%, 03/15/2017 (c)		1,000		1,094
	5.42%, 03/15/2017			800			848		Jefferies Group LLC
	8.00%, 07/29/2049 (c)			1,000			1,055		6.25%, 01/15/2036		1,425		1,413
	8.13%, 12/29/2049 (c)			1,000			1,061		8.50%, 07/15/2019		750		891
	Citigroup Inc										$		4,965
	3.88%, 03/26/2025			1,000			958
	4.50%, 01/14/2022			1,000			1,077		Electric - 6.02%
	Goldman Sachs Group Inc/The								Exelon Generation Co LLC
	3.63%, 02/07/2016			500			508		6.20%, 10/01/2017		1,000		1,093
	5.38%, 03/15/2020			2,000			2,227		GenOn Americas Generation LLC
	ING Bank NV								8.50%, 10/01/2021		1,250		1,187
	5.00%, 06/09/2021 (d)			1,000			1,116		GenOn Energy Inc
	JP Morgan Chase & Co								9.88%, 10/15/2020		750		763
	3.63%, 05/13/2024			1,000			993		LG&E and KU Energy LLC
	7.90%, 04/29/2049 (c)			1,000			1,058		4.38%, 10/01/2021		1,000		1,085
	Morgan Stanley								Metropolitan Edison Co
									3.50%, 03/15/2023 (d)		1,000		985
	5.50%, 07/28/2021			1,000			1,128
	6.25%, 08/09/2026			850			1,019		Oncor Electric Delivery Co LLC
	PNC Financial Services Group Inc/The								7.00%, 09/01/2022		2,000		2,461
	6.75%, 07/29/2049 (c)			2,000			2,215		PacifiCorp
	SunTrust Bank/Atlanta GA								5.25%, 06/15/2035		850		946
	2.75%, 05/01/2023			1,000			962		6.25%, 10/15/2037		500		624
	US Bancorp/MN								Solar Star Funding LLC
									5.38%, 06/30/2035 (d)		1,500		1,666
	1.65%, 05/15/2017			3,000			3,036
	3.60%, 09/11/2024			250			251		Southwestern Electric Power Co
									3.55%, 02/15/2022		1,000		1,031

See accompanying notes.

48

Schedule of Investments
Income Account
June 30, 2015 (unaudited)
				Principal						Principal
	BONDS (continued)			Amount (000's)    Value (000's)			BONDS (continued)			Amount (000's)   Value (000's)
	Electric (continued)						Lodging - 0.28%
	Talen Energy Supply LLC						Boyd Gaming Corp
	5.70%, 10/15/2035		$	2,000	$	2,000	6.88%, 05/15/2023		$	750	$	769
	TransAlta Corp
	4.50%, 11/15/2022			1,750		1,737
							Media - 2.60	%
	Tucson Electric Power Co						21st Century Fox America Inc
	3.85%, 03/15/2023			1,000		1,019	6.40%, 12/15/2035			1,000		1,183
				$		16,597	8.00%, 10/17/2016			1,000		1,085
	Electronics - 0.49%						Comcast Corp
	Corning Inc						6.45%, 03/15/2037			2,000		2,472
	4.75%, 03/15/2042			750		768	Historic TW Inc
	6.63%, 05/15/2019			500		580	9.15%, 02/01/2023			250		330
				$		1,348	Time Warner Cable Inc
							6.55%, 05/01/2037			1,500		1,562
	Entertainment - 0.19%						6.75%, 06/15/2039			500		534
	Greektown Holdings LLC/Greektown									$		7,166
	Mothership Corp
	8.88%, 03/15/2019 (d)			250		263	Mining - 0.62%
	Peninsula Gaming LLC / Peninsula Gaming						Glencore Canada Corp
	Corp						6.00%, 10/15/2015			1,675		1,697
	8.38%, 02/15/2018 (d)			250		260
				$		523	Oil & Gas - 6.10%
	Environmental Control - 0.93%						BG Energy Capital PLC
	ADS Waste Holdings Inc						4.00%, 10/15/2021 (d)			2,000		2,122
	8.25%, 10/01/2020			1,500		1,552	BP Capital Markets PLC
	Republic Services Inc						3.25%, 05/06/2022			1,000		1,003
	3.55%, 06/01/2022			1,000		1,013	4.75%, 03/10/2019			2,000		2,188
				$		2,565	Linn Energy LLC / Linn Energy Finance
							Corp
	Food - 0.18	%					6.50%, 05/15/2019			1,000		808
	HJ Heinz Co						Nabors Industries Inc
	3.95%, 07/15/2025 (d),(e)			500		503	5.00%, 09/15/2020			1,000		1,041
							Petro-Canada
	Forest Products & Paper - 0.78%						9.25%, 10/15/2021			1,075		1,430
	Plum Creek Timberlands LP						Phillips 66
	4.70%, 03/15/2021			2,000		2,141	4.30%, 04/01/2022			1,000		1,049
							Rowan Cos Inc
							4.88%, 06/01/2022			750		745
	Healthcare - Services - 1.56%						5.00%, 09/01/2017			2,000		2,064
	HCA Inc						W&T Offshore Inc
	7.50%, 11/06/2033			250		271	8.50%, 06/15/2019			2,500		1,734
	HealthSouth Corp						Whiting Petroleum Corp
	5.75%, 11/01/2024			500		511	5.75%, 03/15/2021			1,250		1,230
	7.75%, 09/15/2022			740		773	XTO Energy Inc
	Roche Holdings Inc						6.75%, 08/01/2037			1,000		1,395
	0.61%, 09/30/2019 (c),(d)			2,000		1,999				$		16,809
	Vantage Oncology LLC / Vantage Oncology
	Finance Co						Oil & Gas Services - 1.53%
	9.50%, 06/15/2017 (d)			750		731	Exterran Partners LP / EXLP Finance Corp
				$		4,285	6.00%, 04/01/2021			2,000		1,930
							Weatherford International Ltd/Bermuda
	Insurance - 2.56%						4.50%, 04/15/2022			250		235
	Fidelity National Financial Inc						5.13%, 09/15/2020			2,000		2,038
	6.60%, 05/15/2017			2,500		2,705				$		4,203
	First American Financial Corp
	4.30%, 02/01/2023			2,000		1,982	Other Asset Backed Securities - 1.39%
	Prudential Financial Inc						Drug Royalty II LP 2
	7.38%, 06/15/2019			1,000		1,186	3.48%, 07/15/2023  (c),(d)			1,813		1,839
	8.88%, 06/15/2068 (c)			1,000		1,170	PFS Financing Corp
				$		7,043	0.74%, 02/15/2018 (c),(d)			1,000		999
							0.81%, 04/15/2020 (c),(d)			1,000		1,000
	Iron & Steel - 1.50%									$		3,838
	Allegheny Technologies Inc
	5.95%, 01/15/2021			2,000		2,025	Packaging & Containers - 0.37%
	ArcelorMittal						Sealed Air Corp
	6.25%, 03/01/2021 (c)			2,000		2,095	6.88%, 07/15/2033 (d)			1,000		1,010
				$		4,120
	Leisure Products & Services - 1.04%						Pharmaceuticals - 0.97%
	Carnival Corp						AbbVie Inc
	7.20%, 10/01/2023			1,475		1,760	2.90%, 11/06/2022			1,000		968
	Royal Caribbean Cruises Ltd						Actavis Funding SCS
	7.25%, 03/15/2018			1,000		1,100	3.80%, 03/15/2025			1,000		983
				$		2,860

See accompanying notes.

49

Schedule of Investments
Income Account
June 30, 2015 (unaudited)
				Principal						Principal
	BONDS (continued)			Amount (000's)      Value (000's)			CONVERTIBLE BONDS - 1.34%		Amount (000's)		Value (000			's)
	Pharmaceuticals (continued)						Automobile Parts & Equipment - 0.86%
	Actavis Funding SCS (continued)						Meritor Inc
	4.55%, 03/15/2035		$	750	$	713	7.88%, 03/01/2026		$	1,500		$	2,370
				$		2,664
	Pipelines - 2.82%						Pharmaceuticals - 0.48%
	ANR Pipeline Co						Omnicare Inc
	9.63%, 11/01/2021			1,000		1,318	3.25%, 12/15/2035			433			533
	Buckeye Partners LP						3.50%, 02/15/2044			538			768
	4.35%, 10/15/2024			500		490					$		1,301
	Columbia Pipeline Group Inc						TOTAL CONVERTIBLE BONDS				$		3,671
	4.50%, 06/01/2025 (d)			1,000		984
										Principal
	El Paso Natural Gas Co LLC						SENIOR FLOATING RATE INTERESTS - 0.16	%	Amount (000's)		Value (000			's)
	7.50%, 11/15/2026			2,100		2,545
	Express Pipeline LLC						Transportation - 0.16%
	7.39%, 12/31/2019 (d)			650		689	Trailer Bridge Inc, Term Loan
							10.00%, 04/02/2016 (b),(c),(f)		$	454		$	454
	Southeast Supply Header LLC
	4.25%, 06/15/2024 (d)			750		740
	Southern Natural Gas Co LLC						TOTAL SENIOR FLOATING RATE INTERESTS				$		454
	8.00%, 03/01/2032			850		1,009	U.S. GOVERNMENT & GOVERNMENT			Principal
				$		7,775	AGENCY OBLIGATIONS - 32.61%		Amount (000's)		Value (000			's)
							Federal Home Loan Mortgage Corporation (FHLMC) -
	REITS - 5.67	%					6.07	%
	Alexandria Real Estate Equities Inc						3.00%, 10/01/2042		$	837		$	834
	4.60%, 04/01/2022			1,250		1,317	3.00%, 10/01/2042			1,698			1,693
	BioMed Realty LP						3.00%, 11/01/2042			827			824
	4.25%, 07/15/2022			1,000		1,013	3.00%, 12/01/2042			379			378
	6.13%, 04/15/2020			1,000		1,132	3.50%, 10/01/2041			1,008			1,040
	CubeSmart LP						3.50%, 04/01/2042			1,339			1,381
	4.80%, 07/15/2022			1,750		1,882	3.50%, 04/01/2042			2,160			2,228
	HCP Inc						4.00%, 02/01/2045			983			1,042
	3.75%, 02/01/2019			1,000		1,040	4.50%, 08/01/2033			341			370
	Health Care REIT Inc						4.50%, 05/01/2039			753			815
	6.13%, 04/15/2020			1,000		1,142	4.50%, 06/01/2039			440			479
	Hospitality Properties Trust						4.50%, 07/01/2039			1,463			1,597
	4.65%, 03/15/2024			750		748	4.50%, 12/01/2040			741			803
	5.00%, 08/15/2022			750		781	4.50%, 10/01/2041			880			953
	Kimco Realty Corp						5.00%, 08/01/2019			188			197
	6.88%, 10/01/2019			2,000		2,336	5.00%, 08/01/2035			958			1,054
	Simon Property Group LP						5.50%, 11/01/2017			31			32
	10.35%, 04/01/2019			2,000		2,541	5.50%, 01/01/2018			13			13
	Ventas Realty LP / Ventas Capital Corp						5.50%, 05/01/2031			43			48
	3.25%, 08/15/2022			1,750		1,690	5.50%, 06/01/2035			104			116
				$		15,622	5.50%, 01/01/2036			222			248
							5.50%, 04/01/2036			151			170
	Savings & Loans - 0.40%
	First Niagara Financial Group Inc						6.00%, 03/01/2031			27			30
	7.25%, 12/15/2021			1,000		1,114	6.00%, 05/01/2032			53			61
							6.00%, 06/01/2038			226			256
							6.50%, 06/01/2029			18			21
	Software - 0.70%						6.50%, 08/01/2029			22			25
	Oracle Corp						7.00%, 01/01/2032			13			13
	2.50%, 05/15/2022			1,000		971	9.00%, 01/01/2025			4			5
	2.95%, 05/15/2025			1,000		962					$		16,726
				$		1,933
							Federal National Mortgage Association (FNMA) - 15.58%
	Telecommunications - 0.80%						3.00%, 03/01/2042			1,491			1,493
	Qwest Corp						3.00%, 03/01/2042			1,455			1,457
	6.75%, 12/01/2021			2,000		2,207	3.00%, 05/01/2042			791			792
							3.00%, 06/01/2042			1,474			1,476
							3.00%, 06/01/2042			727			728
	Transportation - 0.97%
	Navios Maritime Holdings Inc / Navios						3.00%, 08/01/2042			754			755
	Maritime Finance II US Inc						3.50%, 12/01/2040			1,225			1,266
	7.38%, 01/15/2022(d)			500		433	3.50%, 12/01/2041			455			471
	Trailer Bridge Inc						3.50%, 03/01/2042			734			759
	0.00%, 11/15/2015 (a),(b),(f)			2,000		—	3.50%, 04/01/2042			1,337			1,383
	16.00%, 03/31/2017 (b),(c),(f)			2,407		2,238	3.50%, 02/01/2043			897			927
				$		2,671	3.50%, 06/01/2043			1,390			1,437
							4.00%, 03/01/2039			971			1,029
	Trucking & Leasing - 0.75%						4.00%, 08/01/2040			805			856
	Penske Truck Leasing Co Lp / PTL Finance						4.00%, 09/01/2040			1,816			1,934
	Corp						4.00%, 11/01/2040			936			998
	3.75%, 05/11/2017 (d)			2,000		2,069	4.00%, 10/01/2041			1,057			1,125
							4.00%, 10/01/2041			781			830
	TOTAL BONDS			$		167,331	4.00%, 11/01/2041			1,167			1,237

See accompanying notes.

50

Schedule of Investments
Income Account
June 30, 2015 (unaudited)

U.S. GOVERNMENT & GOVERNMENT		Principal					(c)	Variable Rate. Rate shown is in effect at June 30, 2015.
AGENCY OBLIGATIONS (continued)		Amount (000's)     Value (000's)					(d)	Security exempt from registration under Rule 144A of the Securities Act of
								1933. These securities may be resold in transactions exempt from
Federal National Mortgage Association (FNMA) (continued)
4.00%, 04/01/2042		$	668	$	711			registration, normally to qualified institutional buyers. At the end of the
4.00%, 11/01/2043			837		891			period, the value of these securities totaled $27,531 or 10.00% of net
4.00%, 11/01/2043			2,135		2,279			assets.
4.00%, 01/01/2044			1,915		2,038		(e)	Security purchased on a when-issued basis.
4.00%, 02/01/2044			2,565		2,733		(f)	Security is Illiquid. At the end of the period, the value of these securities
4.00%, 09/01/2044			882		935			totaled $2,692 or 0.98% of net assets.
4.50%, 06/01/2039			322		348
4.50%, 08/01/2039			376		406
4.50%, 05/01/2040			1,230		1,340			Portfolio Summary (unaudited)
4.50%, 08/01/2040			1,419		1,538		Sector		Percent
4.50%, 10/01/2040			1,357		1,471		Mortgage Securities		21.69	%
4.50%, 12/01/2040			787		857		Financial		18.30	%
4.50%, 08/01/2041			958		1,038		Government		10.92	%
4.50%, 05/01/2044			1,410		1,527		Energy		10.45	%
5.00%, 01/01/2018			50		53		Consumer, Non-cyclical		6.53	%
5.00%, 08/01/2035			452		499		Utilities		6.02	%
5.00%, 04/01/2039			266		295		Exchange Traded Funds		5.40	%
5.00%, 12/01/2039			300		332		Asset Backed Securities		5.14	%
5.00%, 04/01/2040			801		892		Industrial		4.09	%
5.00%, 06/01/2040			693		772		Consumer, Cyclical		3.57	%
5.50%, 03/01/2033			53		59		Basic Materials		3.44	%
5.50%, 06/01/2033			216		243		Communications		3.40	%
5.50%, 02/01/2035			431		488		Technology		1.31	%
6.00%, 04/01/2032			56		64		Liabilities in Excess of Other Assets, Net		(0.26	)%
6.50%, 05/01/2031			6		6		TOTAL NET ASSETS		100.00	%
6.50%, 04/01/2032			85		98
6.50%, 05/01/2032			33		38
7.00%, 01/01/2030			2		2
			$		42,906
Government National Mortgage Association (GNMA) -
0.04	%
6.00%, 05/20/2032 (c)			50		58
7.00%, 06/20/2031			53		64
9.00%, 02/15/2025			3		4
			$		126
U.S. Treasury - 10.92%
0.75%, 10/31/2017			1,000		999
0.88%, 02/28/2017			1,000		1,005
1.38%, 11/30/2018			1,000		1,008
1.63%, 11/15/2022			2,000		1,933
1.75%, 05/15/2022			2,000		1,961
2.00%, 11/15/2021			2,000		2,004
2.38%, 05/31/2018			1,000		1,040
2.50%, 05/15/2024			1,000		1,017
2.63%, 11/15/2020			2,000		2,089
2.75%, 02/15/2019			1,000		1,053
2.75%, 02/15/2024			1,000		1,038
2.88%, 05/15/2043			1,000		953
3.00%, 11/15/2044			1,000		978
3.13%, 05/15/2019			2,000		2,134
3.13%, 05/15/2021			1,000		1,070
3.13%, 08/15/2044			1,000		1,002
3.38%, 05/15/2044			1,000		1,050
3.50%, 02/15/2039			1,000		1,078
3.63%, 02/15/2020			2,000		2,184
3.63%, 02/15/2044			1,000		1,100
3.75%, 08/15/2041			1,000		1,123
3.75%, 11/15/2043			2,000		2,250
			$		30,069
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS			$		89,827
Total Investments			$		276,163
Liabilities in Excess of Other Assets, Net - (0.26)%			$		(718	)
TOTAL NET ASSETS - 100.00%			$		275,445

(a)	Non-Income Producing Security
(b)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $2,692 or 0.98% of net assets.

See accompanying notes.

51

Schedule of Investments
LargeCap Growth Account
June 30, 2015 (unaudited)
COMMON STOCKS - 98.81%	Shares Held      Value (000's)			COMMON STOCKS (continued)	Shares Held		Value (000			's)
Airlines - 3.95%				Packaging & Containers - 0.44%
Delta Air Lines Inc	59,014	$	2,424	Rock-Tenn Co	9,200			$	554
United Continental Holdings Inc (a)	47,555		2,521
	$		4,945	Pharmaceuticals - 10.79%
				Allergan PLC (a)	11,455				3,476
Apparel - 4.86%
Nike Inc	39,370		4,253	AmerisourceBergen Corp	13,160				1,399
Under Armour Inc (a)	22,026		1,838	Bristol-Myers Squibb Co	52,075				3,465
	$		6,091	McKesson Corp	17,235				3,875
				Mylan NV (a)	19,152				1,300
Banks - 5.52%						$	13,515
Capital One Financial Corp	41,000		3,607
Morgan Stanley	85,300		3,309	Retail - 12.45%
	$		6,916	Kohl's Corp	37,600				2,354
				L Brands Inc	25,006				2,144
Beverages - 1.47%				Starbucks Corp	54,588				2,927
Constellation Brands Inc	15,911		1,846	Target Corp	39,300				3,208
				Ulta Salon Cosmetics & Fragrance Inc (a)	19,073				2,946
Biotechnology - 9.38%				Urban Outfitters Inc (a)	14,400				504
Alexion Pharmaceuticals Inc (a)	6,615		1,196	Yum! Brands Inc	16,800				1,513
Biogen Inc (a)	6,268		2,532			$	15,596
Gilead Sciences Inc	53,127		6,220	Semiconductors - 4.54%
Illumina Inc (a)	8,267		1,805	Avago Technologies Ltd	6,711				892
	$		11,753	Lam Research Corp	21,679				1,764
				NXP Semiconductors NV (a)	30,809				3,025
Chemicals - 3.75%
PPG Industries Inc	40,984		4,702				$		5,681
				Software - 2.78%
				ServiceNow Inc (a)	23,793				1,768
Commercial Services - 7.82%
FleetCor Technologies Inc (a)	13,372		2,087	Tableau Software Inc (a)	14,834				1,710
MasterCard Inc	44,198		4,131				$		3,478
McGraw Hill Financial Inc	23,692		2,380	Telecommunications - 1.27%
Towers Watson & Co	9,562		1,203	Palo Alto Networks Inc (a)	9,137				1,596
	$		9,801
Computers - 7.22%				TOTAL COMMON STOCKS		$	123,785
Apple Inc	67,222		8,431	INVESTMENT COMPANIES - 1.29%	Shares Held		Value (000			's)
Cognizant Technology Solutions Corp (a)	10,000		611
				Publicly Traded Investment Fund - 1.29%
	$		9,042	BlackRock Liquidity Funds FedFund Portfolio	1,620,083				1,620
Cosmetics & Personal Care - 1.58%
Estee Lauder Cos Inc/The	22,863		1,981	TOTAL INVESTMENT COMPANIES			$		1,620
				Total Investments		$	125,405
				Liabilities in Excess of Other Assets, Net - (0.10)%			$		(131	)
Diversified Financial Services - 3.74%
Intercontinental Exchange Inc	4,000		894	TOTAL NET ASSETS - 100.00%		$	125,274
Visa Inc	56,440		3,790
	$		4,684	(a) Non-Income Producing Security
Healthcare - Products - 2.39%
Edwards Lifesciences Corp (a)	12,907		1,838
Intuitive Surgical Inc (a)	2,390		1,158
				Portfolio Summary (unaudited)
	$		2,996	Sector					Percent
Internet - 8.82%				Consumer, Non-cyclical					33.43	%
Amazon.com Inc (a)	6,437		2,794	Consumer, Cyclical					24.55	%
Facebook Inc (a)	48,182		4,133	Technology					14.54	%
Netflix Inc (a)	2,017		1,325	Communications					12.15	%
Priceline Group Inc/The (a)	1,096		1,262	Financial					9.26	%
Splunk Inc (a)	22,062		1,536	Basic Materials					3.75	%
	$		11,050	Exchange Traded Funds					1.29	%
				Energy					0.69	%
Leisure Products & Services - 1.90%				Industrial					0.44	%
Royal Caribbean Cruises Ltd	30,162		2,374	Liabilities in Excess of Other Assets, Net					(0.10	)%
				TOTAL NET ASSETS			100.00			%
Lodging - 1.39%
Hilton Worldwide Holdings Inc (a)	63,033		1,737
Media - 2.06%
Walt Disney Co/The	22,633		2,583
Oil & Gas - 0.69%
Cabot Oil & Gas Corp	27,400		864

See accompanying notes.

52

Schedule of Investments
MidCap Account
June 30, 2015 (unaudited)
COMMON STOCKS - 99.45%	Shares Held        Value (000's)			COMMON STOCKS (continued)	Shares Held    Value (000's)
Aerospace & Defense - 1.67%				Insurance (continued)
Rockwell Collins Inc	46,673	$	4,310	Brown & Brown Inc	223,089	$	7,331
TransDigm Group Inc (a)	32,223		7,240	Loews Corp	279,562		10,766
	$		11,550	Markel Corp (a)	26,280		21,042
				Progressive Corp/The	115,742		3,221
Banks - 1.08%				White Mountains Insurance Group Ltd	7,618		4,989
M&T Bank Corp	59,790		7,469	Willis Group Holdings PLC	121,819		5,713
					$		75,351
Building Materials - 1.79%				Internet - 2.64%
Armstrong World Industries Inc (a)	50,561		2,694	Liberty Ventures (a)	207,494		8,148
Martin Marietta Materials Inc	68,100		9,637	VeriSign Inc (a)	163,483		10,090
	$		12,331		$		18,238
Chemicals - 5.03%				Leisure Products & Services - 0.67%
Air Products & Chemicals Inc	101,479		13,886	Liberty TripAdvisor Holdings Inc (a)	144,325		4,650
Airgas Inc	76,061		8,046
Ashland Inc	25,376		3,093
Ecolab Inc	40,721		4,604	Lodging - 0.87%
Platform Specialty Products Corp (a),(b)	200,324		5,124	Wyndham Worldwide Corp	61,843		5,066
	$		34,753	Wynn Resorts Ltd	9,679		955
					$		6,021
Commercial Services - 7.83%
KAR Auction Services Inc	221,187		8,272	Machinery - Diversified - 1.54%
Live Nation Entertainment Inc (a)	206,918		5,688	Roper Technologies Inc	61,781		10,655
Macquarie Infrastructure Corp	107,965		8,921
McGraw Hill Financial Inc	74,549		7,489	Media - 7.67%
Moody's Corp	126,237		13,629	Discovery Communications Inc - C Shares (a)	348,813		10,841
Robert Half International Inc	52,417		2,909	FactSet Research Systems Inc	24,792		4,029
Verisk Analytics Inc (a)	98,710		7,182	Liberty Broadband Corp - A Shares (a)	43,938		2,240
	$		54,090	Liberty Broadband Corp - C Shares (a)	117,364		6,004
Distribution & Wholesale - 1.12%				Liberty Global PLC - A Shares (a)	77,050		4,166
Fastenal Co	112,217		4,733	Liberty Global PLC - C Shares (a)	230,451		11,668
HD Supply Holdings Inc (a)	85,432		3,006	Liberty Media Corp - A Shares (a)	126,559		4,561
	$		7,739	Liberty Media Corp - C Shares (a)	236,180		8,479
				Tribune Media Co	17,575		938
Diversified Financial Services - 3.95%					$		52,926
AerCap Holdings NV (a)	147,200		6,740
Charles Schwab Corp/The	148,180		4,838	Miscellaneous Manufacturing - 1.41%
FNF Group	245,644		9,086	Colfax Corp (a)	211,360		9,754
FNFV Group (a)	92,456		1,422
LPL Financial Holdings Inc	111,968		5,206	Oil & Gas - 3.09%
	$		27,292	Cheniere Energy Inc (a)	34,590		2,396
Electric - 1.62%				Cimarex Energy Co	51,678		5,701
Brookfield Infrastructure Partners LP	180,558		8,058	EOG Resources Inc	72,217		6,322
Brookfield Renewable Energy Partners LP/CA	51,998		1,543	Hess Corp	103,410		6,916
Calpine Corp (a)	88,067		1,585		$		21,335
	$		11,186	Packaging & Containers - 0.38%
Electronics - 0.88%				MeadWestvaco Corp	55,122		2,601
Sensata Technologies Holding NV (a)	114,861		6,058
				Pharmaceuticals - 5.66%
Engineering & Construction - 1.92%				Mead Johnson Nutrition Co	106,057		9,569
SBA Communications Corp (a)	115,144		13,238	Valeant Pharmaceuticals International Inc (a)	80,155		17,806
				Zoetis Inc	243,046		11,720
					$		39,095
Healthcare - Products - 2.28%
Becton Dickinson and Co	49,971		7,078	Pipelines - 0.34%
CR Bard Inc	50,595		8,637	Kinder Morgan Inc/DE	54,020		2,074
	$		15,715	Kinder Morgan Inc/DE - Warrants (a)	88,299		238
					$		2,312
Healthcare - Services - 0.82%
DaVita HealthCare Partners Inc (a)	70,916		5,636	Private Equity - 0.91%
				KKR & Co LP	102,301		2,338
				Onex Corp	71,341		3,945
Holding Companies - Diversified - 1.19%					$		6,283
Leucadia National Corp	339,089		8,233
				Real Estate - 7.22%
				Brookfield Asset Management Inc	800,879		27,975
Home Builders - 0.41%				Brookfield Property Partners LP	106,622		2,351
Lennar Corp	55,100		2,812	CBRE Group Inc (a)	198,528		7,345
				Forest City Enterprises Inc (a)	277,639		6,136
				Howard Hughes Corp/The (a)	42,056		6,037
Insurance - 10.91%
Alleghany Corp (a)	6,216		2,914		$		49,844
Aon PLC	156,823		15,632
Arch Capital Group Ltd (a)	55,897		3,743

See accompanying notes.

53

Schedule of Investments
MidCap Account
June 30, 2015 (unaudited)

COMMON STOCKS (continued)	Shares Held	Value (000			's)
REITS - 0.94%
Crown Castle International Corp	80,747		$	6,484
Retail - 15.02%
AutoZone Inc (a)	17,243			11,499
CarMax Inc (a)	150,478			9,963
Copart Inc (a)	129,915			4,609
Dollar General Corp	120,047			9,333
Liberty Interactive Corp QVC Group (a)	396,399			11,000
O'Reilly Automotive Inc (a)	85,299			19,276
Restaurant Brands International Inc	277,842			10,616
Ross Stores Inc	134,466			6,537
Signet Jewelers Ltd	67,005			8,593
TJX Cos Inc/The	185,119			12,249
		$		103,675
Semiconductors - 1.13%
Microchip Technology Inc	164,952			7,823
Software - 4.60%
Adobe Systems Inc (a)	67,547			5,472
Autodesk Inc (a)	51,287			2,568
CDK Global Inc	35,849			1,935
Fidelity National Information Services Inc	153,149			9,465
Intuit Inc	79,194			7,980
MSCI Inc	70,227			4,323
		$		31,743
Telecommunications - 1.49%
EchoStar Corp (a)	85,971			4,185
Motorola Solutions Inc	106,803			6,124
		$		10,309
Textiles - 1.37%
Mohawk Industries Inc (a)	49,586			9,466
TOTAL COMMON STOCKS		$		686,667
INVESTMENT COMPANIES - 0.14%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 0.14%
BlackRock Liquidity Funds FedFund Portfolio	965,319			965
TOTAL INVESTMENT COMPANIES		$		965
Total Investments		$		687,632
Other Assets in Excess of Liabilities, Net - 0.41%		$		2,856
TOTAL NET ASSETS - 100.00%		$		690,488

(a)	Non-Income Producing Security
(b)	Security is Illiquid. At the end of the period, the value of these securities totaled $5,124 or 0.74% of net assets.

Portfolio Summary (unaudited)
Sector	Percent
Financial	25.01	%
Consumer, Cyclical	19.46	%
Consumer, Non-cyclical	16.59	%
Communications	11.80	%
Industrial	9.59	%
Technology	5.73	%
Basic Materials	5.03	%
Energy	3.43	%
Utilities	1.62	%
Diversified	1.19	%
Exchange Traded Funds	0.14	%
Other Assets in Excess of Liabilities, Net	0.41	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

54

Schedule of Investments
Money Market Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 6.15%			Shares Held      Value (000's)						Principal
							BONDS (continued)			Amount (000's)  Value (000's)
	Publicly Traded Investment Fund - 6.15%
	BlackRock Liquidity Funds TempFund			3,800,000	$	3,800	Other Asset Backed Securities (continued)
	Portfolio						MMAF Equipment Finance LLC 2015-A
	Deutsche Money Market Series			4,900,000		4,900	0.39%, 06/03/2016 (a),(b)		$	1,729	$	1,729
	Morgan Stanley Institutional Liquidity Funds -			2,700,000		2,700				$		4,931
	Government Portfolio						TOTAL BONDS			$		21,153
	STIT - Liquid Assets Portfolio			5,300,000		5,300				Principal
				$		16,700	MUNICIPAL BONDS - 7.06%			Amount (000's)  Value (000's)
	TOTAL INVESTMENT COMPANIES			$		16,700
							California - 0.60%
				Principal			California Statewide Communities
	BONDS - 7.79	%		Amount (000's)      Value (000's)			Development Authority (credit support from
	Automobile Asset Backed Securities - 3.84%						Fannie Mae)
	AmeriCredit Automobile Receivables 2015-1						0.16%, 07/08/2015 (d)		$	140	$	140
	0.30%, 01/08/2016 (a)		$	183	$	183	San Francisco City & County Redevelopment
	ARI Fleet Lease Trust 2015-A						Agency (credit support from Fannie Mae)
	0.40%, 04/15/2016 (b)			865		865	0.13%, 07/08/2015 (d)			1,500		1,500
	CarMax Auto Owner Trust 2015-1									$		1,640
	0.24%, 03/15/2016 (a)			582		582
	Chrysler Capital Auto Receivables Trust 2015-						Colorado - 0.85%
	A						City of Colorado Springs CO Utilities System
	0.37%, 04/15/2016 (a),(b)			1,211		1,211	Revenue (credit support from Bank
							York Mellon)
	Drive Auto Receivables Trust 2015-B						0.18%, 07/08/2015 (d)			1,600		1,600
	0.46%, 06/15/2016 (a),(b)			969		969
	GM Financial Automobile Leasing Trust						Colorado Housing & Finance
	2015-1						Authority (credit support from Federal Home
	0.38%, 03/21/2016 (a)			550		550	Loan Bank)
							0.12%, 07/08/2015 (a),(d)			700		700
	Harley-Davidson Motorcycle Trust 2015-1
	0.25%, 02/16/2016 (a)			31		31				$		2,300
	Huntington Auto Trust 2015-1						Illinois - 0.07%
	0.35%, 06/15/2016			2,000		2,000	Memorial Health System/IL (credit support
	Hyundai Auto Receivables Trust 2015-A						from JP Morgan Chase & Co)
	0.24%, 01/15/2016 (a)			297		297	0.12%, 07/08/2015 (d)			200		200
	Mercedes Benz Auto Lease Trust 2015-A
	0.24%, 01/15/2016 (a)			575		574
	Santander Drive Auto Receivables Trust 2015-						Iowa - 0.18	%
	2						Iowa Finance Authority (credit support from
	0.45%, 05/16/2016 (a)			1,135		1,135	FHLB 100%, Fannie Mae 78.25% and Ginnie
							Mae 21.75%)
	SunTrust Auto Receivables Trust 2015-1						0.14%, 07/08/2015 (d)			500		500
	0.40%, 06/15/2016(a),(b)			1,700		1,700
	Volkswagen Auto Lease Trust 2015-A
	0.25%, 03/21/2016 (a)			325		325
							Minnesota - 0.41%
				$		10,422	Minnesota Housing Finance Agency (credit
							support from Wells Fargo)
	Banks - 0.66	%					0.18%, 07/08/2015 (d)			1,100		1,100
	Wells Fargo Bank NA
	0.46%, 05/20/2016 (a)			1,800		1,800
							New Mexico - 0.42%
							Village of Los Lunas NM (credit support from
	Diversified Financial Services - 0.74%						Wells Fargo)
	MetLife Inc						0.23%, 07/08/2015 (d)			1,150		1,150
	0.34%, 08/17/2015 (a),(c)			2,000		2,000
	Insurance - 0.74%						New York - 3.22%
	New York Life Global						Housing Development Corp/NY (credit
	0.27%, 07/24/2015 (a),(c)			2,000		2,000	support from Fannie Mae)
							0.15%, 07/08/2015 (d)			2,150		2,150
							Housing Development Corp/NY (credit
	Other Asset Backed Securities - 1.81%						support from Freddie Mac)
	CIT Equipment Collateral 2014-VT1						0.13%, 07/08/2015 (d)			1,320		1,320
	0.30%, 12/21/2015 (a),(b)			538		538	New York State Housing Finance
	GE Equipment Transportation LLC Series						Agency (credit support from Fannie Mae)
	2015-1						0.10%, 07/08/2015 (d)			900		900
	0.25%, 03/23/2016 (a)			785		785	0.12%, 07/08/2015 (d)			1,560		1,560
	GreatAmerica Leasing Receivables						0.19%, 07/08/2015 (d)			1,500		1,500
	0.40%, 03/21/2016 (a),(b)			392		392	New York State Housing Finance
	John Deere Owner Trust 2015						Agency (credit support from Freddie Mac)
	0.27%, 04/01/2016 (a)			903		903	0.10%, 07/08/2015 (d)			1,300		1,300
	Kubota Credit Owner Trust 2015-1									$		8,730
	0.27%, 02/16/2016 (a),(b)			502		502
	Macquarie Equipment Funding Trust 2014-A						North Carolina - 0.31%
	0.26%, 09/21/2015 (b)			82		82	City of Raleigh NC (credit support from
							Wells Fargo)
							0.18%, 07/08/2015 (d)			840		840

See accompanying notes.

55

Schedule of Investments
Money Market Account
June 30, 2015 (unaudited)
				Principal					Principal
	MUNICIPAL BONDS (continued)			Amount (000's)   Value (000's)			COMMERCIAL PAPER (continued)		Amount (000's) Value (000's)
	Pennsylvania - 0.25%						Banks (continued)
	Luzerne County Industrial Development						Societe Generale SA
	Authority (credit support from Wells Fargo)						0.22%, 08/04/2015 (b),(e)	$	2,000	$	1,999
	0.23%, 07/08/2015 (d)		$	670	$	670	Standard Chartered Bank/New York
							0.23%, 08/10/2015 (b)		1,900		1,899
							0.24%, 07/15/2015 (b)		1,800		1,800
	Texas - 0.59	%					0.26%, 09/25/2015 (b)		2,000		1,999
	South Central Texas Industrial Development						Sumitomo Mitsui Banking Corp
	Corp (credit support from JP Morgan Chase &						0.12%, 07/02/2015 (b),(e)		2,000		2,000
	Co)						0.24%, 07/09/2015 (b),(e)		2,300		2,300
	0.10%, 07/08/2015 (d)			1,600		1,600
							0.27%, 09/24/2015 (b),(e)		2,000		1,999
									$		71,936
	Washington - 0.16%						Beverages - 1.22%
	Washington State Housing Finance						Brown-Forman Corp
	Commission (credit support from Bank of						0.16%, 07/29/2015 (b)		2,100		2,100
	America)						0.18%, 07/17/2015 (b)		1,200		1,200
	0.14%, 07/08/2015 (d)			440		440
									$		3,300
	TOTAL MUNICIPAL BONDS			$		19,170	Commercial Services - 2.91%
				Principal			Catholic Health Initiatives
	COMMERCIAL PAPER - 74.40%			Amount (000's)  Value (000's)			0.19%, 08/20/2015		2,000		2,000
							0.20%, 08/26/2015		2,000		1,999
	Automobile Manufacturers - 1.40%
	BMW US Capital LLC (credit support from						0.22%, 09/17/2015		1,900		1,899
	BMW AG)						Salvation Army/United States
	0.11%, 07/01/2015(b),(d)		$	2,100	$	2,100	0.18%, 08/27/2015		2,000		1,999
	0.11%, 07/06/2015 (b),(d)			1,700		1,700			$		7,897
				$		3,800	Computers - 0.77%
							EMC Corp/MA
	Banks - 26.49	%					0.15%, 08/06/2015 (b)		2,100		2,100
	Bank of Tokyo-Mitsubishi UFJ Ltd/New York
	NY
	0.16%, 07/01/2015			1,700		1,700	Diversified Financial Services - 22.97%
	0.19%, 07/13/2015			1,500		1,500	American Express Credit Corp
	0.20%, 07/28/2015			1,400		1,400	0.20%, 08/03/2015		2,000		1,999
	BNP Paribas/New York NY						0.34%, 09/03/2015		1,800		1,799
	0.20%, 07/23/2015			1,600		1,600	Anglesea Funding LLC
	0.24%, 08/18/2015			2,200		2,199	0.18%, 07/01/2015 (b)		2,000		2,000
	CAFCO LLC						AXA Financial Inc (credit support from AXA
	0.17%, 08/25/2015 (b)			2,000		1,999	SA)
	Credit Suisse/New York NY						0.24%, 08/03/2015 (b),(d)		1,300		1,300
	0.22%, 07/17/2015			2,000		2,000	Collateralized Commercial Paper Co LLC
	0.23%, 07/31/2015			2,000		1,999	0.25%, 09/24/2015		1,445		1,444
	0.24%, 07/02/2015			2,000		2,000	Collateralized Commercial Paper II Co LLC
	DBS Bank Ltd						0.17%, 07/17/2015 (b)		2,000		2,000
	0.20%, 08/21/2015 (b),(e)			2,200		2,199	0.20%, 07/06/2015 (b)		1,000		1,000
	Manhattan Asset Funding Co LLC						0.25%, 09/02/2015 (b)		2,100		2,099
	0.18%, 07/16/2015 (b)			2,000		2,000	Dealers Capital Access Trust Inc
	0.18%, 07/23/2015 (b)			2,000		2,000	0.25%, 07/15/2015		2,200		2,200
	0.18%, 07/30/2015 (b)			2,000		2,000	0.25%, 07/20/2015		2,000		2,000
	Mitsubishi UFJ Trust & Banking Corp/NY						0.27%, 07/10/2015		2,100		2,100
	0.26%, 09/24/2015 (b)			2,000		1,999	Fairway Finance LLC
	Mizuho Bank Ltd/NY						0.24%, 10/05/2015 (b)		2,200		2,198
	0.27%, 09/21/2015 (b)			2,000		1,999	Gotham Funding Corp
	0.28%, 09/23/2015 (b)			2,000		1,998	0.15%, 07/14/2015 (b)		1,500		1,500
	MUFG Union Bank NA						0.16%, 07/07/2015 (b)		2,000		2,000
	0.05%, 07/01/2015			5,000		5,000	0.18%, 08/03/2015 (b)		2,000		2,000
	0.15%, 07/28/2015			1,500		1,500	0.18%, 08/26/2015 (b)		1,135		1,135
	Nordea Bank AB						ING US Funding LLC (credit support from
	0.17%, 07/06/2015 (b),(e)			2,000		2,000	ING Bank)
	0.18%, 07/01/2015 (b),(e)			2,100		2,100	0.26%, 08/06/2015 (d)		2,000		1,999
	Oversea-Chinese Banking Corp Ltd						0.32%, 10/09/2015 (d)		2,100		2,098
	0.18%, 08/05/2015 (e)			1,750		1,750	0.32%, 10/22/2015 (d)		1,000		999
	0.19%, 07/08/2015 (e)			2,300		2,300	Intercontinental Exchange Inc
	0.20%, 08/03/2015(e)			1,650		1,650	0.17%, 07/13/2015 (b)		2,000		2,000
	Sheffield Receivables Co LLC						0.18%, 07/29/2015 (b)		2,000		2,000
	0.19%, 07/15/2015 (b)			2,000		2,000	0.18%, 07/31/2015 (b)		2,000		2,000
	0.19%, 07/21/2015 (b)			2,000		2,000	JP Morgan Securities LLC
	0.21%, 08/04/2015 (b)			2,000		1,999	0.18%, 07/22/2015		2,200		2,200
	Skandinaviska Enskilda Banken AB						0.30%, 08/19/2015		2,100		2,099
	0.14%, 07/08/2015 (b),(e)			1,250		1,250	Liberty Street Funding LLC
	0.15%, 07/16/2015 (b),(e)			1,800		1,800	0.18%, 07/24/2015 (b)		2,200		2,200
	0.26%, 08/07/2015 (b),(e)			2,000		1,999	0.19%, 08/28/2015 (b)		2,000		1,999

See accompanying notes.

56

Schedule of Investments
Money Market Account
June 30, 2015 (unaudited)
				Principal							Principal
	COMMERCIAL PAPER (continued)			Amount (000's)           Value (000's)			COMMERCIAL PAPER (continued)			Amount (000's)		Value (000			's)
	Diversified Financial Services (continued)						Supranational Bank - 0.63%
	Nieuw Amsterdam Receivables Corp						Corp Andina de Fomento
	0.14%, 07/07/2015 (b)		$	1,800	$	1,800		0.21%, 07/27/2015 (b)		$	1,700		$	1,700
	0.18%, 08/18/2015 (b)			2,000		1,999
	0.19%, 08/11/2015 (b)			2,100		2,099	TOTAL COMMERCIAL PAPER					$		201,995
	Regency Markets No. 1 LLC
	0.17%, 07/16/2015 (b)			1,500		1,500					Principal
							CERTIFICATE OF DEPOSIT - 2.58%			Amount (000's)		Value (000			's)
	0.17%, 07/20/2015 (b)			2,000		2,000
	0.17%, 07/27/2015 (b)			1,500		1,500	Banks - 2.58%
	0.17%, 07/29/2015 (b)			1,500		1,500	Bank of America NA
	Thunder Bay Funding LLC							0.21%, 07/14/2015			2,100			2,100
	0.21%, 07/16/2015 (b)			1,600		1,600		0.22%, 08/17/2015			2,200			2,200
				$		62,366		0.23%, 09/18/2015			1,300			1,300
							Bank of Nova Scotia/Houston
	Electric - 5.16%							0.44%, 05/11/2016 (a),(e)			1,400			1,400
	GDF Suez											$		7,000
	0.17%, 07/01/2015 (b)			2,000		2,000	TOTAL CERTIFICATE OF DEPOSIT					$		7,000
	0.17%, 07/22/2015 (b)			2,000		2,000
	0.18%, 08/12/2015 (b)			2,200		2,199					Maturity
							REPURCHASE AGREEMENTS - 1.85%			Amount (000's)		Value (000			's)
	Oglethorpe Power Corp
	0.15%, 07/10/2015 (b)			1,900		1,900	Banks - 1.85%
	0.18%, 07/14/2015 (b)			2,000		2,000	Merrill Lynch Repurchase Agreement; 0.07% $				5,040	$		5,040
	Southern Co Funding Corp							dated 06/30/2015 maturing 07/01/2015
	0.22%, 07/09/2015 (b)			1,900		1,900		(collateralized by US Government
	0.25%, 07/28/2015 (b)			2,000		2,000		Security; $5,140,800; 1.38%; dated
				$		13,999		01/31/2020	)
	Healthcare - Products - 0.77%						TOTAL REPURCHASE AGREEMENTS					$		5,040
	Danaher Corp						Total Investments					$		271,058
	0.18%, 07/10/2015 (b)			2,100		2,100
							Other Assets in Excess of Liabilities, Net - 0.17%					$		448
							TOTAL NET ASSETS - 100.00%					$		271,506
	Insurance - 4.16%
	Prudential Funding LLC (credit support from
	Prudential Financial Inc)						(a)	Variable Rate. Rate shown is in effect at June 30, 2015.
	0.05%, 07/01/2015 (d)			6,000		6,000	(b)	Security exempt from registration under Rule 144A of the Securities Act of
	Prudential PLC							1933. These securities may be resold in transactions exempt from
	0.20%, 07/07/2015 (b)			1,300		1,300		registration, normally to qualified institutional buyers. At the end of the
	0.20%, 08/18/2015 (b)			1,800		1,799		period, the value of these securities totaled $143,551 or 52.87% of net
	0.23%, 07/20/2015 (b)			2,200		2,200		assets.
				$		11,299	(c)	Security is Illiquid. At the end of the period, the value of these securities
								totaled $4,000 or 1.47% of net assets.
	Investment Companies - 1.88%						(d)	Credit support indicates investments that benefit from credit enhancement
	Alpine Securitization Corp							or liquidity support provided by a third party bank, institution, or
	0.20%, 07/13/2015 (b)			1,400		1,400		government
								agency.
	0.23%, 07/31/2015 (b)			1,700		1,700	(e)
								Security issued by foreign bank and denominated in USD.
	0.23%, 08/10/2015 (b)			2,000		1,999
				$		5,099
	Oil & Gas - 1.84%							Portfolio Summary (unaudited)
	Exxon Mobil Corp						Sector							Percent
	0.04%, 07/01/2015			5,000		5,000	Financial							64.04	%
							Insured							7.06	%
	Pharmaceuticals - 0.74%						Exchange Traded Funds							6.15	%
	Novartis Finance Corp (credit support from						Asset Backed Securities							5.65	%
	Novartis AG)						Consumer, Non-cyclical							5.63	%
	0.08%, 07/08/2015 (b),(d)			2,000		2,000	Utilities							5.16	%
							Energy							2.61	%
							Consumer, Cyclical							2.14	%
	Pipelines - 0.77%						Technology							0.77	%
	Questar Corp						Government							0.62	%
	0.12%, 07/01/2015 (b)			2,100		2,100	Other Assets in Excess of Liabilities, Net							0.17	%
							TOTAL NET ASSETS							100.00	%
	REITS - 1.95	%
	Simon Property Group LP
	0.15%, 07/23/2015 (b)			1,200		1,200
	0.15%, 07/27/2015 (b)			2,100		2,100
	0.17%, 08/05/2015 (b)			2,000		1,999
				$		5,299
	Retail - 0.74%
	Wal-Mart Stores Inc
	0.05%, 07/06/2015 (b)			2,000		2,000

See accompanying notes.

57

Schedule of Investments
Principal Capital Appreciation Account
June 30, 2015 (unaudited)
COMMON STOCKS - 97.91%	Shares Held        Value (000's)			COMMON STOCKS (continued)	Shares Held      Value (000's)
Aerospace & Defense - 2.98%				Distribution & Wholesale - 0.46%
Boeing Co/The	18,783	$	2,605	Pool Corp	11,490	$	806
Northrop Grumman Corp	10,201		1,618
Teledyne Technologies Inc (a)	9,512		1,004
				Diversified Financial Services - 3.60%
	$		5,227	Ameriprise Financial Inc	6,517		814
Airlines - 0.32%				Charles Schwab Corp/The	60,342		1,970
Alaska Air Group Inc	8,831		569	FNF Group	28,506		1,055
				Franklin Resources Inc	34,620		1,697
				T Rowe Price Group Inc	9,894		769
Apparel - 1.87%					$		6,305
Nike Inc	28,009		3,026
Ralph Lauren Corp	1,884		249	Electric - 1.06%
	$		3,275	Duke Energy Corp	16,014		1,131
				Xcel Energy Inc	22,554		726
Automobile Manufacturers - 0.98%					$		1,857
PACCAR Inc	26,949		1,720
				Electronics - 3.34%
				Corning Inc	33,743		666
Automobile Parts & Equipment - 1.56%				FEI Co	6,391		530
Autoliv Inc	9,640		1,125	FLIR Systems Inc	9,738		300
Johnson Controls Inc	32,436		1,607	Thermo Fisher Scientific Inc	14,163		1,838
	$		2,732	Trimble Navigation Ltd (a)	23,473		550
				Waters Corp (a)	15,375		1,974
Banks - 7.41%
East West Bancorp Inc	21,586		968		$		5,858
Goldman Sachs Group Inc/The	4,392		917	Engineering & Construction - 0.06%
JP Morgan Chase & Co	30,020		2,034	Granite Construction Inc	2,980		106
PNC Financial Services Group Inc/The	23,043		2,204
State Street Corp	7,118		548
SVB Financial Group (a)	7,400		1,065	Environmental Control - 0.73%
US Bancorp/MN	37,661		1,635	Stericycle Inc (a)	1,969		264
Wells Fargo & Co	64,249		3,613	Waste Connections Inc	21,718		1,023
	$		12,984		$		1,287
Beverages - 1.74%				Food - 2.70%
Ambev SA ADR	68,509		418	Dairy Farm International Holdings Ltd ADR	7,529		326
Brown-Forman Corp	7,889		790	General Mills Inc	18,611		1,037
Coca-Cola Co/The	30,780		1,208	Kroger Co/The	20,471		1,484
PepsiCo Inc	6,847		639	McCormick & Co Inc/MD	13,277		1,075
	$		3,055	Safeway, Inc. - CVR - Casa Ley (a),(b)	825		—
				Safeway, Inc. - CVR - Property Development	825		—
Biotechnology - 0.79%				Centers (a),(b),(c)
Gilead Sciences Inc	11,864		1,389	Whole Foods Market Inc	20,559		811
					$		4,733
Building Materials - 0.52%				Gas - 1.46%
Apogee Enterprises Inc	17,195		905	Sempra Energy	25,935		2,566
Chemicals - 2.39%				Healthcare - Products - 2.97%
EI du Pont de Nemours & Co	19,711		1,260	Becton Dickinson and Co	10,266		1,454
FMC Corp	13,049		686	Bio-Techne Corp	9,133		899
International Flavors & Fragrances Inc	10,226		1,118	Edwards Lifesciences Corp (a)	7,856		1,119
PPG Industries Inc	9,860		1,131	Halyard Health Inc (a)	13,997		567
	$		4,195	Medtronic PLC	7,590		562
				Varian Medical Systems Inc (a)	7,252		612
Commercial Services - 0.75%
Robert Half International Inc	11,098		616		$		5,213
TrueBlue Inc (a)	23,142		692
				Healthcare - Services - 1.64%
	$		1,308	DaVita HealthCare Partners Inc (a)	17,028		1,353
Computers - 5.41%				Universal Health Services Inc	10,655		1,514
Apple Inc	48,065		6,029		$		2,867
EMC Corp/MA	61,022		1,610	Housewares - 0.33%
International Business Machines Corp	8,931		1,453	Tupperware BrandsCorp	8,861		572
Teradata Corp (a)	10,473		387
	$		9,479
				Insurance - 2.15%
Consumer Products - 0.86%				ACE Ltd	11,012		1,120
Kimberly-Clark Corp	6,162		653	Chubb Corp/The	9,658		919
WD-40 Co	9,845		858	MetLife Inc	12,335		690
	$		1,511	XL Group PLC	28,015		1,042
Cosmetics & Personal Care - 0.66%					$		3,771
Procter & Gamble Co/The	14,694		1,150	Internet - 3.01%
				Amazon.com Inc (a)	4,080		1,771
				eBay Inc (a)	9,376		565
				Google Inc - A Shares (a)	3,456		1,866

See accompanying notes.

58

Schedule of Investments
Principal Capital Appreciation Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held         Value (000's)			COMMON STOCKS (continued)		Shares Held	Value (000			's)
Internet (continued)				Retail (continued)
Google Inc - C Shares (a)	1,556	$	810	Costco Wholesale Corp		21,187		$	2,861
LinkedIn Corp (a)	1,251		259	CVS Health Corp		21,080			2,211
	$		5,271	Home Depot Inc/The		11,744			1,305
				Nordstrom Inc		24,706			1,841
Iron & Steel - 0.71%				Starbucks Corp		50,882			2,728
Reliance Steel & Aluminum Co	15,822		957				$		11,951
Schnitzer Steel Industries Inc	16,586		290
	$		1,247	Savings & Loans - 0.40%
				Washington Federal Inc		29,750			695
Leisure Products & Services - 1.06%
Carnival Corp	18,204		899
Harley-Davidson Inc	17,162		967	Semiconductors - 2.94%
	$		1,866	Applied Materials Inc		36,926			710
				Avago Technologies Ltd		3,670			488
Machinery - Construction & Mining - 0.15%				Intel Corp		32,638			993
Caterpillar Inc	3,097		263	Lam Research Corp		12,433			1,011
				Microchip Technology Inc		25,001			1,185
Machinery - Diversified - 1.29%				Qualcomm Inc		12,308			771
Deere & Co	21,573		2,093				$		5,158
Tennant Co	2,691		176	Software - 6.48%
	$		2,269	Adobe Systems Inc (a)		32,789			2,656
				Autodesk Inc (a)		13,939			698
Media - 2.36%
Viacom Inc	18,813		1,216	Fair Isaac Corp		15,329			1,392
Walt Disney Co/The	25,519		2,913	Microsoft Corp		67,207			2,967
	$		4,129	Omnicell Inc (a)		16,077			606
				Oracle Corp		54,340			2,190
Metal Fabrication & Hardware - 0.50%				Tyler Technologies Inc (a)		6,577			851
Precision Castparts Corp	4,423		884				$		11,360
				Telecommunications - 2.42%
Miscellaneous Manufacturing - 2.00%				China Mobile Ltd ADR		1,358			87
AptarGroup Inc	16,570		1,057	Cisco Systems Inc		31,747			872
Crane Co	10,394		610	Polycom Inc (a)		27,677			316
Donaldson Co Inc	8,372		300	Verizon Communications Inc		63,483			2,959
General Electric Co	58,079		1,543				$		4,234
	$		3,510
				Toys, Games & Hobbies - 0.50%
Oil & Gas - 6.04%				Hasbro Inc		11,655			872
Apache Corp	11,632		670
Chevron Corp	24,153		2,330
Devon Energy Corp	25,184		1,498	Transportation - 1.43%
Energen Corp	13,565		927	Expeditors International of Washington Inc		28,065			1,294
Exxon Mobil Corp	32,986		2,745	Union Pacific Corp		12,707			1,212
HollyFrontier Corp	17,172		733				$		2,506
Occidental Petroleum Corp	21,526		1,674	Trucking & Leasing - 0.12%
	$		10,577	Greenbrier Cos Inc/The		4,494			211
Oil & Gas Services - 0.86%
Natural Gas Services Group Inc (a)	17,081		390
				Water - 0.28%
Schlumberger Ltd	12,949		1,116	California Water Service Group		21,159			483
	$		1,506
Pharmaceuticals - 6.87%				TOTAL COMMON STOCKS			$		171,597
Abbott Laboratories	26,926		1,321	INVESTMENT COMPANIES - 2.22%		Shares Held	Value (000			's)
AbbVie Inc	15,928		1,070
Allergan PLC (a)	5,570		1,690	Publicly Traded Investment Fund - 2.22%
Bristol-Myers Squibb Co	19,501		1,298	BlackRock Liquidity Funds FedFund Portfolio		3,891,704			3,892
Johnson & Johnson	20,723		2,020	TOTAL INVESTMENT COMPANIES			$		3,892
McKesson Corp	12,736		2,863
Perrigo Co PLC	2,510		464	Total Investments			$		175,489
Teva Pharmaceutical Industries Ltd ADR	8,646		511	Liabilities in Excess of Other Assets, Net - (0.13)%			$		(234	)
VCA Inc (a)	14,642		797	TOTAL NET ASSETS - 100.00%			$		175,255
	$		12,034
REITS - 2.93%				(a)	Non-Income Producing Security
Alexandria Real Estate Equities Inc	11,353		993	(b)	Fair value of these investments is determined in good faith by the Manager
Essex Property Trust Inc	3,172		674		under procedures established and periodically reviewed by the Board of
HCP Inc	10,662		389		Directors. At the end of the period, the fair value of these securities totaled
Plum Creek Timber Co Inc	34,283		1,391		$0 or 0.00% of net assets.
Sabra Health Care REIT Inc	17,092		440	(c)	Security is Illiquid. At the end of the period, the value of these securities
Ventas Inc	15,697		974		totaled $0 or 0.00% of net assets.
Weyerhaeuser Co	8,573		270
	$		5,131
Retail - 6.82%
Copart Inc (a)	28,329		1,005

See accompanying notes.

59

	Schedule of Investments
	Principal Capital Appreciation Account
	June 30, 2015 (unaudited)
Portfolio Summary (unaudited)
Sector	Percent
Consumer, Non-cyclical	18.98	%
Financial	16.49	%
Technology	14.83	%
Consumer, Cyclical	13.90	%
Industrial	13.12	%
Communications	7.79	%
Energy	6.90	%
Basic Materials	3.10	%
Utilities	2.80	%
Exchange Traded Funds	2.22	%
Liabilities in Excess of Other Assets, Net	(0.13	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

60

Schedule of Investments
Real Estate Securities Account
June 30, 2015 (unaudited)

COMMON STOCKS - 99.24%	Shares Held	Value (000			's)
Healthcare - Services - 1.11%
Brookdale Senior Living Inc (a)	48,635		$	1,687
REITS - 98.13%
Alexandria Real Estate Equities Inc	34,000			2,974
American Realty Capital Properties Inc	150,328			1,222
American Tower Corp	26,399			2,463
Apartment Investment & Management Co	133,700			4,938
AvalonBay Communities Inc	37,155			5,940
Boston Properties Inc	54,102			6,549
Camden Property Trust	36,783			2,732
CBL & Associates Properties Inc	14,628			237
CubeSmart	132,382			3,066
CyrusOne Inc	33,978			1,001
DDR Corp	166,999			2,582
Duke Realty Corp	133,330			2,476
Education Realty Trust Inc	44,268			1,388
EPR Properties	49,789			2,727
Equity One Inc	113,339			2,645
Equity Residential	72,357			5,077
Essex Property Trust Inc	38,016			8,078
Extra Space Storage Inc	16,640			1,085
Federal Realty Investment Trust	22,648			2,901
First Industrial Realty Trust Inc	179,242			3,357
General Growth Properties Inc	231,853			5,949
GEO Group Inc/The	8,613			294
Health Care REIT Inc	101,093			6,635
Host Hotels & Resorts Inc	250,157			4,961
Hudson Pacific Properties Inc	52,075			1,477
Kilroy Realty Corp	55,696			3,740
Macerich Co/The	6,800			507
Pebblebrook Hotel Trust	100,350			4,303
Prologis Inc	165,613			6,144
Public Storage	48,077			8,864
Saul Centers Inc	33,004			1,623
Simon Property Group Inc	102,287			17,698
SL Green Realty Corp	59,740			6,565
STORE Capital Corp	43,169			868
Strategic Hotels & Resorts Inc (a)	197,896			2,399
Sun Communities Inc	36,392			2,250
Sunstone Hotel Investors Inc	188,614			2,831
Ventas Inc	114,424			7,105
Vornado Realty Trust	21,853			2,075
WP GLIMCHER Inc	16,646			225
		$		149,951
TOTAL COMMON STOCKS		$		151,638
INVESTMENT COMPANIES - 0.00%	Shares Held	Value (000			's)
Publicly Traded Investment Fund - 0.00%
BlackRock Liquidity Funds FedFund Portfolio	1,895			2
TOTAL INVESTMENT COMPANIES		$		2
Total Investments		$		151,640
Other Assets in Excess of Liabilities, Net - 0.76%		$		1,167
TOTAL NET ASSETS - 100.00%		$		152,807
(a) Non-Income Producing Security
Portfolio Summary (unaudited)
Sector				Percent
Financial				98.13	%
Consumer, Non-cyclical				1.11	%
Exchange Traded Funds				0.00	%
Other Assets in Excess of Liabilities, Net				0.76	%
TOTAL NET ASSETS				100.00	%

See accompanying notes.

61

Schedule of Investments
SAM Balanced Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 51.00%
Blue Chip Fund (a)		2,602,916	$	41,178
Diversified International Fund (a)		1,240,892		14,903
Global Diversified Income Fund (a)		1,286,793		17,861
Global Multi-Strategy Fund (a)		6,172,366		68,637
Global Real Estate Securities Fund (a)		2,005,409		17,928
High Yield Fund (a)		2,969,203		21,913
Inflation Protection Fund (a)		1,611,737		13,652
International Emerging Markets Fund (a)		572,767		13,706
LargeCap Growth Fund (a)		7,313,001		83,734
LargeCap Value Fund (a)		5,085,942		64,642
MidCap Value Fund I (a)		1,125,719		16,728
Preferred Securities Fund (a)		365,909		3,721
Principal Capital Appreciation Fund (a)		737,183		44,179
SmallCap Growth Fund I (a)		73,759		969
SmallCap Value Fund II (a)		498,756		6,758
Small-MidCap Dividend Income Fund (a)		1,987,414		27,009
		$		457,518
Principal Variable Contracts Funds, Inc. Class 1 - 49.02%
Diversified International Account (a)		3,429,757		51,172
Equity Income Account (a)		4,293,059		98,955
Government & High Quality Bond Account (a)		6,257,725		65,644
Income Account (a)	11,903,356			129,151
MidCap Account (a)		866,209		55,316
Short-Term Income Account (a)	15,121,113			39,466
		$		439,704
TOTAL INVESTMENT COMPANIES		$		897,222
Total Investments		$		897,222
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(198	)
TOTAL NET ASSETS - 100.00%		$		897,024

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	49.00	%
Fixed Income Funds	30.49	%
International Equity Funds	10.89	%
Specialty Funds	9.64	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

62

Schedule of Investments
SAM Balanced Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	June 30, 2015  June 30, 2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	2,782,489	$	39,000	3,938	$	64	183,511		$	2,916	2,602,916	$	36,167
Diversified International Account	5,052,004		53,927	4,095		62	1,626,342			22,733	3,429,757		34,791
Diversified International Fund	—		—	1,240,892		15,040	—			—	1,240,892		15,040
Equity Income Account	4,692,543		52,332	—		—	399,484			9,327	4,293,059		47,474
Global Diversified Income Fund	1,338,732		18,057	29,828		420	81,767			1,156	1,286,793		17,319
Global Multi-Strategy Fund	4,448,034		46,633	1,724,333		18,975	—			—	6,172,367		65,608
Global Real Estate Securities Fund	1,013,697		8,193	1,046,237		10,025	54,525			500	2,005,409		17,685
Government & High Quality Bond	6,654,476		65,657	18,955		199	415,706			4,377	6,257,725		61,516
Account
High Yield Fund	2,590,684		17,625	378,519		2,797	—			—	2,969,203		20,422
Income Account	12,440,973		121,674	—		—	537,617			5,864	11,903,356		115,889
Inflation Protection Fund	1,295,128		11,148	330,433		2,802	13,824			120	1,611,737		13,831
International Emerging Markets Fund	655,350		15,441	151,351		3,589	233,934			5,408	572,767		13,495
LargeCap Growth Fund	7,813,229		84,220	10,989		127	511,217			5,779	7,313,001		78,339
LargeCap Value Fund	8,194,515		106,259	21,166		272	3,129,739			39,596	5,085,942		65,657
MidCap Account	905,088		39,930	1,368		89	40,247			2,614	866,209		37,628
MidCap Value Fund I	242,199		3,953	883,521		12,949	—			—	1,125,720		16,902
Preferred Securities Fund	371,056		2,083	9,305		96	14,452			150	365,909		2,058
Principal Capital Appreciation Fund	874,988		44,541	—		—	137,805			8,327	737,183		37,265
Short-Term Income Account	16,080,585		40,843	76,499		199	1,035,971			2,698	15,121,113		38,329
SmallCap Growth Fund I	73,759		747	—		—	—			—	73,759		747
SmallCap Value Fund II	498,756		5,013	—		—	—			—	498,756		5,013
Small-MidCap Dividend Income Fund	2,065,534		22,800	24,696		342	102,816			1,438	1,987,414		21,698
		$	800,076		$	68,047			$	113,003	$		762,873
						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			19			$			—
Diversified International Account			—				3,535						—
Diversified International Fund			—				—						—
Equity Income Account			—				4,469						—
Global Diversified Income Fund			382				(2	)					—
Global Multi-Strategy Fund			—				—						—
Global Real Estate Securities Fund			181				(33	)					—
Government & High Quality Bond Account			—				37						—
High Yield Fund			614				—						—
Income Account			—				79						—
Inflation Protection Fund			—				1						—
International Emerging Markets Fund			—				(127	)					—
LargeCap Growth Fund			—				(229	)					—
LargeCap Value Fund			—				(1,278	)					—
MidCap Account			—				223						—
MidCap Value Fund I			—				—						—
Preferred Securities Fund			96				29						—
Principal Capital Appreciation Fund			—				1,051						—
Short-Term Income Account			—				(15	)					—
SmallCap Growth Fund I			—				—						—
SmallCap Value Fund II			—				—						—
Small-MidCap Dividend Income Fund			303				(6	)					—
	$		1,576	$			7,753			$			—
Amounts in thousands except shares

See accompanying notes.

63

				Schedule of Investments
		SAM Conservative Balanced Portfolio
				June 30, 2015 (unaudited)
INVESTMENT COMPANIES - 100.02%	Shares Held                               Value (000's)
Principal Funds, Inc. Institutional Class - 42.69%
Blue Chip Fund (a)		390,801	$	6,183
Diversified International Fund (a)		207,855		2,496
Global Diversified Income Fund (a)		522,781		7,256
Global Multi-Strategy Fund (a)		1,077,665		11,984
Global Real Estate Securities Fund (a)		372,538		3,331
High Yield Fund (a)		1,462,477		10,793
Inflation Protection Fund (a)		604,461		5,120
International Emerging Markets Fund (a)		95,958		2,296
LargeCap Growth Fund (a)		1,291,680		14,790
LargeCap Value Fund (a)		892,072		11,338
MidCap Value Fund I (a)		276,932		4,115
Preferred Securities Fund (a)		113,152		1,151
Principal Capital Appreciation Fund (a)		137,127		8,218
SmallCap Growth Fund I (a)		20,894		274
SmallCap Value Fund II (a)		73,229		992
Small-MidCap Dividend Income Fund (a)		312,201		4,243
		$		94,580
Principal Variable Contracts Funds, Inc. Class 1 - 57.33%
Bond & Mortgage Securities Account (a)		369,167		4,238
Diversified International Account (a)		549,281		8,195
Equity Income Account (a)		636,575		14,673
Government & High Quality Bond Account (a)		2,623,750		27,523
Income Account (a)		4,402,337		47,765
MidCap Account (a)		125,898		8,040
Short-Term Income Account (a)		6,358,896		16,597
		$		127,031
TOTAL INVESTMENT COMPANIES		$		221,611
Total Investments		$		221,611
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(51	)
TOTAL NET ASSETS - 100.00%		$		221,560

(a) Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	51.08	%
Domestic Equity Funds	32.89	%
Specialty Funds	8.68	%
International Equity Funds	7.37	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

64

Schedule of Investments
SAM Conservative Balanced Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015 June 30, 2015
	Shares		Cost		Shares	Cost		Shares			Proceeds	Shares		Cost
Blue Chip Fund	397,512	$	5,444		11,491	$	184	18,202		$	289	390,801	$	5,338
Bond & Mortgage Securities Account	396,098		4,603		—		—	26,931			312	369,167		4,287
Diversified International Account	796,751		8,228		10,836		164	258,306			3,604	549,281		5,344
Diversified International Fund	—		—		207,855		2,519	—			—	207,855		2,519
Equity Income Account	666,857		7,436		15,112		356	45,394			1,061	636,575		7,056
Global Diversified Income Fund	528,519		7,176		23,754		336	29,492			416	522,781		7,086
Global Multi-Strategy Fund	897,556		9,492		180,109		1,989	—			—	1,077,665		11,481
Global Real Estate Securities Fund	281,701		2,288		118,099		1,123	27,262			250	372,538		3,148
Government & High Quality Bond	2,670,835		26,905		89,444		944	136,529			1,437	2,623,750		26,415
Account
High Yield Fund	1,364,721		9,477		178,353		1,317	80,597			600	1,462,477		10,172
Income Account	4,494,303		44,866		122,696		1,342	214,662			2,340	4,402,337		43,886
Inflation Protection Fund	412,086		3,547		192,376		1,643	—			—	604,462		5,190
International Emerging Markets Fund	109,246		2,563		31,140		739	44,428			1,027	95,958		2,251
LargeCap Growth Fund	1,376,642		14,994		—		—	84,962			959	1,291,680		13,977
LargeCap Value Fund	1,313,046		16,996		27,765		356	448,739			5,711	892,072		11,492
MidCap Account	127,557		5,216		5,757		348	7,416			481	125,898		5,116
MidCap Value Fund I	117,560		1,898		159,372		2,337	—			—	276,932		4,235
Preferred Securities Fund	110,275		619		2,877		30	—			—	113,152		649
Principal Capital Appreciation Fund	156,440		7,964		—		—	19,313			1,163	137,127		6,932
Short-Term Income Account	6,529,387		16,430		225,670		589	396,161			1,032	6,358,896		15,980
SmallCap Growth Fund I	20,894		212		—		—	—			—	20,894		212
SmallCap Value Fund II	73,229		726		—		—	—			—	73,229		726
Small-MidCap Dividend Income Fund	331,050		3,592		3,445		48	22,294			313	312,201		3,326
		$	200,672			$	16,364			$	20,995	$		196,818
						Realized Gain/Loss						Realized Gain from
			Income			on Investments					Capital Gain Distributions
Blue Chip Fund	$			—	$			(1	)		$			—
Bond & Mortgage Securities Account				—				(4	)					—
Diversified International Account				—				556						—
Diversified International Fund				—				—						—
Equity Income Account				—				325						—
Global Diversified Income Fund				152				(10	)					—
Global Multi-Strategy Fund				—				—						—
Global Real Estate Securities Fund				34				(13	)					—
Government & High Quality Bond Account				—				3						—
High Yield Fund				316				(22	)					—
Income Account				—				18						—
Inflation Protection Fund				—				—						—
International Emerging Markets Fund				—				(24	)					—
LargeCap Growth Fund				—				(58	)					—
LargeCap Value Fund				—				(149	)					—
MidCap Account				—				33						—
MidCap Value Fund I				—				—						—
Preferred Securities Fund				30				—						—
Principal Capital Appreciation Fund				—				131						—
Short-Term Income Account				—				(7	)					—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				—						—
Small-MidCap Dividend Income Fund				48				(1	)					—
	$			580	$			777			$			—
Amounts in thousands except shares

See accompanying notes.

65

Schedule of Investments
SAM Conservative Growth Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 62.67%
Blue Chip Fund (a)		1,118,903	$	17,701
Diversified International Fund (a)		602,666		7,238
Diversified Real Asset Fund (a)		878,047		10,466
Global Multi-Strategy Fund (a)		2,745,114		30,526
Global Real Estate Securities Fund (a)		894,346		7,995
High Yield Fund (a)		254,478		1,878
International Emerging Markets Fund (a)		83,912		2,008
LargeCap Growth Fund (a)		3,336,119		38,199
LargeCap Value Fund (a)		2,439,158		31,002
MidCap Value Fund I (a)		533,072		7,921
Origin Emerging Markets Fund (a),(b)		331,658		3,340
Preferred Securities Fund (a)		36,365		370
Principal Capital Appreciation Fund (a)		333,904		20,011
SmallCap Growth Fund I (a)		50,087		658
SmallCap Value Fund II (a)		123,629		1,675
Small-MidCap Dividend Income Fund (a)		888,993		12,081
		$		193,069
Principal Variable Contracts Funds, Inc. Class 1 - 37.36%
Diversified International Account (a)		1,440,415		21,491
Equity Income Account (a)		1,705,794		39,318
Government & High Quality Bond Account (a)		718,742		7,540
Income Account (a)		1,403,485		15,228
MidCap Account (a)		419,130		26,766
Short-Term Income Account (a)		1,814,722		4,736
		$		115,079
TOTAL INVESTMENT COMPANIES		$		308,148
Total Investments		$		308,148
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(86	)
TOTAL NET ASSETS - 100.00%		$		308,062

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	63.40	%
International Equity Funds	13.66	%
Specialty Funds	13.31	%
Fixed Income Funds	9.66	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

66

Schedule of Investments
SAM Conservative Growth Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014		Purchases		Purchases	Sales			Sales	June 30, 2015   June 30, 2015
	Shares		Cost		Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	1,121,994	$	15,701		42,745	$	672	45,836		$	733	1,118,903	$	15,647
Diversified International Account	2,094,008		26,131		35,193		528	688,786			9,657	1,440,415		16,822
Diversified International Fund	—		—		602,666		7,305	—			—	602,666		7,305
Diversified Real Asset Fund	871,224		10,211		28,721		348	21,898			266	878,047		10,283
Equity Income Account	1,830,072		20,448		46,815		1,090	171,093			4,009	1,705,794		18,948
Global Multi-Strategy Fund	2,098,559		22,401		727,665		8,023	81,110			909	2,745,114		29,510
Global Real Estate Securities Fund	797,815		6,823		204,330		1,950	107,799			998	894,346		7,733
Government & High Quality Bond	720,217		6,965		24,816		261	26,291			276	718,742		6,951
Account
High Yield Fund	233,667		1,574		20,811		153	—			—	254,478		1,727
Income Account	1,255,785		12,061		175,593		1,907	27,893			304	1,403,485		13,666
International Emerging Markets Fund	300,706		7,077		—		—	216,794			5,108	83,912		1,948
LargeCap Growth Fund	3,338,967		36,250		105,877		1,204	108,725			1,233	3,336,119		36,159
LargeCap Value Fund	3,267,577		42,345		46,753		598	875,172			11,066	2,439,158		31,509
MidCap Account	352,126		16,536		81,815		4,920	14,811			956	419,130		20,543
MidCap Value Fund I	166,656		2,692		385,332		5,640	18,916			287	533,072		8,018
Origin Emerging Markets Fund	—		—		331,658		3,300	—			—	331,658		3,300
Preferred Securities Fund	35,441		215		925		10	—			—	36,366		225
Principal Capital Appreciation Fund	363,569		18,505		7,258		435	36,923			2,238	333,904		16,876
Short-Term Income Account	1,716,244		4,383		98,478		257	—			—	1,814,722		4,640
SmallCap Growth Fund I	50,087		507		—		—	—			—	50,087		507
SmallCap Value Fund II	123,629		1,218		—		—	—			—	123,629		1,218
Small-MidCap Dividend Income Fund	881,832		10,043		40,700		567	33,539			471	888,993		10,137
		$	262,086			$	39,168			$	38,511	$		263,672
						Realized Gain/Loss						Realized Gain from
			Income			on Investments					Capital Gain Distributions
Blue Chip Fund	$			—	$			7			$			—
Diversified International Account				—				(180	)					—
Diversified International Fund				—				—						—
Diversified Real Asset Fund				—				(10	)					—
Equity Income Account				—				1,419						—
Global Multi-Strategy Fund				—				(5	)					—
Global Real Estate Securities Fund				85				(42	)					—
Government & High Quality Bond Account				—				1						—
High Yield Fund				54				—						—
Income Account				—				2						—
International Emerging Markets Fund				—				(21	)					—
LargeCap Growth Fund				—				(62	)					—
LargeCap Value Fund				—				(368	)					—
MidCap Account				—				43						—
MidCap Value Fund I				—				(27	)					—
Origin Emerging Markets Fund				—				—						—
Preferred Securities Fund				10				—						—
Principal Capital Appreciation Fund				—				174						—
Short-Term Income Account				—				—						—
SmallCap Growth Fund I				—				—						—
SmallCap Value Fund II				—				—						—
Small-MidCap Dividend Income Fund				132				(2	)					—
	$			281	$			929			$			—
Amounts in thousands except shares

See accompanying notes.

67

Schedule of Investments
SAM Flexible Income Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.02%	Shares Held   Value (000's)
Principal Funds, Inc. Institutional Class - 35.93%
Blue Chip Fund (a)		77,222	$	1,222
Diversified International Fund (a)		173,267		2,081
Global Diversified Income Fund (a)		1,085,437		15,066
Global Real Estate Securities Fund (a)		245,227		2,192
High Yield Fund (a)		2,483,835		18,331
Inflation Protection Fund (a)		1,231,074		10,427
International Emerging Markets Fund (a)		89,090		2,132
LargeCap Growth Fund (a)		843,046		9,653
LargeCap Value Fund (a)		827,183		10,513
Preferred Securities Fund (a)		198,350		2,017
SmallCap Growth Fund I (a)		20,056		263
Small-MidCap Dividend Income Fund (a)		755,542		10,268
		$		84,165
Principal Variable Contracts Funds, Inc. Class 1 - 64.09%
Bond & Mortgage Securities Account (a)		443,644		5,093
Diversified International Account (a)		116,229		1,734
Equity Income Account (a)		1,006,973		23,211
Government & High Quality Bond Account (a)		2,337,876		24,525
Income Account (a)		6,733,827		73,062
Short-Term Income Account (a)		8,632,676		22,531
		$		150,156
TOTAL INVESTMENT COMPANIES		$		234,321
Total Investments		$		234,321
Liabilities in Excess of Other Assets, Net - (0.02)%		$		(55	)
TOTAL NET ASSETS - 100.00%		$		234,266

(a)      Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.

Portfolio Summary (unaudited)
Fund Type	Percent
Fixed Income Funds	66.58	%
Domestic Equity Funds	23.53	%
Specialty Funds	6.43	%
International Equity Funds	3.48	%
Liabilities in Excess of Other Assets, Net	(0.02	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

68

Schedule of Investments
SAM Flexible Income Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014	Purchases	Purchases	Sales			Sales	June 30, 2015 June 30, 2015
	Shares		Cost	Shares	Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	166,707	$	2,149	— $	—	89,485		$	1,423	77,222	$	984
Bond & Mortgage Securities Account	480,945		5,545	14,158	164	51,459			596	443,644		5,107
Diversified International Account	300,456		2,770	—	—	184,227			2,559	116,229		947
Diversified International Fund	—		—	173,267	2,100	—			—	173,267		2,100
Equity Income Account	1,035,499		14,144	32,657	767	61,183			1,434	1,006,973		13,483
Global Diversified Income Fund	1,094,973		14,933	55,632	785	65,168			918	1,085,437		14,761
Global Real Estate Securities Fund	264,882		1,968	2,320	22	21,975			213	245,227		1,789
Government & High Quality Bond	2,353,313		23,239	107,713	1,135	123,150			1,296	2,337,876		23,083
Account
High Yield Fund	1,949,914		13,756	695,937	5,115	162,016			1,207	2,483,835		17,600
Income Account	6,622,511		66,362	370,260	4,033	258,944			2,822	6,733,827		67,556
Inflation Protection Fund	1,168,795		10,067	72,364	618	10,085			86	1,231,074		10,598
International Emerging Markets Fund	79,337		1,889	30,133	715	20,380			473	89,090		2,110
LargeCap Growth Fund	868,876		9,308	29,702	337	55,532			634	843,046		9,031
LargeCap Value Fund	1,019,252		13,233	36,686	471	228,755			2,916	827,183		10,706
Preferred Securities Fund	351,413		2,006	8,091	84	161,154			1,655	198,350		1,059
Short-Term Income Account	8,611,528		21,314	393,913	1,027	372,765			972	8,632,676		21,366
SmallCap Growth Fund I	20,056		203	—	—	—			—	20,056		203
Small-MidCap Dividend Income Fund	779,702		8,245	26,357	368	50,517			708	755,542		7,914
		$	211,131	$	17,741			$	19,912	$		210,397
					Realized Gain/Loss					Realized Gain from
			Income		on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$		258			$			—
Bond & Mortgage Securities Account			—			(6	)					—
Diversified International Account			—			736						—
Diversified International Fund			—			—						—
Equity Income Account			—			6						—
Global Diversified Income Fund			317			(39	)					—
Global Real Estate Securities Fund			22			12						—
Government & High Quality Bond Account			—			5						—
High Yield Fund			541			(64	)					—
Income Account			—			(17	)					—
Inflation Protection Fund			—			(1	)					—
International Emerging Markets Fund			—			(21	)					—
LargeCap Growth Fund			—			20						—
LargeCap Value Fund			—			(82	)					—
Preferred Securities Fund			84			624						—
Short-Term Income Account			—			(3	)					—
SmallCap Growth Fund I			—			—						—
Small-MidCap Dividend Income Fund			115			9						—
	$		1,079	$		1,437			$			—
Amounts in thousands except shares

See accompanying notes.

69

Schedule of Investments
SAM Strategic Growth Portfolio
June 30, 2015 (unaudited)

INVESTMENT COMPANIES - 100.03%	Shares Held    Value (000's)
Principal Funds, Inc. Institutional Class - 80.40%
Diversified International Fund (a)		1,366,442	$	16,411
Global Multi-Strategy Fund (a)		1,761,087		19,583
Global Real Estate Securities Fund (a)		1,099,534		9,830
International Emerging Markets Fund (a)		124,997		2,991
LargeCap Growth Fund (a)		3,194,971		36,583
LargeCap Value Fund (a)		2,387,195		30,341
MidCap Value Fund I (a)		980,955		14,577
Origin Emerging Markets Fund (a),(b)		691,179		6,960
Principal Capital Appreciation Fund (a)		695,834		41,701
SmallCap Growth Fund I (a)		255,568		3,356
SmallCap Value Fund II (a)		350,271		4,746
Small-MidCap Dividend Income Fund (a)		709,747		9,646
		$		196,725
Principal Variable Contracts Funds, Inc. Class 1 - 19.63%
Diversified International Account (a)		879,089		13,116
Equity Income Account (a)		1,514,433		34,907
		$		48,023
TOTAL INVESTMENT COMPANIES		$		244,748
Total Investments		$		244,748
Liabilities in Excess of Other Assets, Net - (0.03)%		$		(72	)
TOTAL NET ASSETS - 100.00%		$		244,676

(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional information.
(b)	Non-Income Producing Security

Portfolio Summary (unaudited)
Fund Type	Percent
Domestic Equity Funds	71.87	%
International Equity Funds	20.16	%
Specialty Funds	8.00	%
Liabilities in Excess of Other Assets, Net	(0.03	)%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

70

Schedule of Investments
SAM Strategic Growth Portfolio
June 30, 2015 (unaudited)
	December 31,		December 31,
Affiliated Securities	2014		2014	Purchases	Purchases		Sales			Sales	June 30, 2015  June 30, 2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Diversified International Account	1,304,494	$	14,885	32,435	$	487	457,840		$	6,411	879,089	$	9,539
Diversified International Fund	—		—	1,366,442		16,562	—			—	1,366,442		16,562
Equity Income Account	1,621,596		19,876	85,126		1,973	192,289			4,504	1,514,433		17,864
Global Multi-Strategy Fund	446,248		4,977	1,348,596		14,847	33,757			378	1,761,087		19,444
Global Real Estate Securities Fund	1,125,328		9,486	92,911		881	118,705			1,118	1,099,534		9,242
International Emerging Markets Fund	382,516		9,096	5,835		139	263,354			6,205	124,997		2,947
LargeCap Growth Fund	3,675,275		39,379	116,536		1,299	596,840			6,858	3,194,971		34,199
LargeCap Value Fund	3,464,774		45,010	100,595		1,290	1,178,174			14,830	2,387,195		30,830
MidCap Value Fund I	581,999		9,405	424,852		6,230	25,896			393	980,955		15,204
Origin Emerging Markets Fund	—		—	691,179		6,878	—			—	691,179		6,878
Principal Capital Appreciation Fund	763,314		42,312	33,699		1,991	101,179			6,130	695,834		38,080
SmallCap Growth Fund I	362,606		3,708	—		—	107,038			1,411	255,568		2,533
SmallCap Value Fund II	373,985		3,631	—		—	23,714			324	350,271		3,332
Small-MidCap Dividend Income Fund	683,462		7,799	43,460		607	17,175			242	709,747		8,160
		$	209,564		$	53,184			$	48,804	$		214,814
					Realized Gain/Loss						Realized Gain from
			Income			on Investments				Capital Gain Distributions
Diversified International Account	$		—	$			578			$			—
Diversified International Fund			—				—						—
Equity Income Account			—				519						—
Global Multi-Strategy Fund			—				(2	)					—
Global Real Estate Securities Fund			99				(7	)					—
International Emerging Markets Fund			—				(83	)					—
LargeCap Growth Fund			—				379						—
LargeCap Value Fund			—				(640	)					—
MidCap Value Fund I			—				(38	)					—
Origin Emerging Markets Fund			—				—						—
Principal Capital Appreciation Fund			—				(93	)					—
SmallCap Growth Fund I			—				236						—
SmallCap Value Fund II			—				25						—
Small-MidCap Dividend Income Fund			105				(4	)					—
	$		204	$			870			$			—
Amounts in thousands except shares

See accompanying notes.

71

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
	INVESTMENT COMPANIES - 2.74%			Shares Held   Value (000's)						Principal
							BONDS (continued)		Amount (000's)   Value (000's)
	Publicly Traded Investment Fund - 2.74%
	BlackRock Liquidity Funds FedFund Portfolio			6,984,452	$	6,984	Automobile Asset Backed Securities (continued)
							Westlake Automobile Receivables Trust 2014-
	TOTAL INVESTMENT COMPANIES			$		6,984	2
							0.97%, 10/16/2017 (a),(b)		$	437	$	437
				Principal
	BONDS - 96.83	%		Amount (000's)     Value (000's)			Westlake Automobile Receivables Trust 2015-
							1
	Agriculture - 0.87%						1.17%, 03/15/2018 (a),(b)			750		750
	Cargill Inc						Westlake Automobile Receivables Trust 2015-
	6.00%, 11/27/2017 (a)		$	2,000	$	2,210	2
							1.28%, 07/16/2018 (a),(b),(c)			1,250		1,250
	Airlines - 0.76%									$		16,716
	Delta Air Lines 2009-1 Class A Pass Through						Automobile Floor Plan Asset Backed Securities - 2.16%
	Trust						CNH Wholesale Master Note Trust
	7.75%, 06/17/2021			554		633	0.79%, 08/15/2019 (a),(b)			1,250		1,251
	UAL 2009-1 Pass Through Trust						Ford Credit Floorplan Master Owner Trust A
	10.40%, 05/01/2018			93		101	0.57%, 01/15/2018 (b)			500		500
	UAL 2009-2A Pass Through Trust						Nissan Master Owner Trust Receivables
	9.75%, 01/15/2017			1,097		1,193	0.49%, 02/15/2018 (b)			1,000		1,000
				$		1,927	Volkswagen Credit Auto Master Trust
							0.54%, 07/22/2019 (a),(b)			1,000		999
	Automobile Asset Backed Securities - 6.56%
	AmeriCredit Automobile Receivables 2015-1						World Omni Master Owner Trust
	0.77%, 04/09/2018			1,500		1,499	0.54%, 02/15/2018 (a),(b)			1,750		1,750
	AmeriCredit Automobile Receivables Trust									$		5,500
	2013-5						Automobile Manufacturers - 2.84%
	0.56%, 03/08/2017 (b)			64		64
							Daimler Finance North America LLC
	AmeriCredit Automobile Receivables Trust						0.70%, 03/02/2018 (a),(b)			750		749
	2014-1						1.38%, 08/01/2017 (a)			500		499
	0.57%, 07/10/2017 (b)			321		321	1.65%, 03/02/2018 (a)			500		498
	AmeriCredit Automobile Receivables Trust						Ford Motor Credit Co LLC
	2014-2						3.98%, 06/15/2016			1,930		1,975
	0.54%, 10/10/2017 (b)			976		975
							PACCAR Financial Corp
	AmeriCredit Automobile Receivables Trust						0.88%, 12/06/2018 (b)			750		753
	2014-3						1.45%, 03/09/2018			500		500
	0.64%, 04/09/2018			1,055		1,055	2.20%, 09/15/2019			1,000		1,007
	AmeriCredit Automobile Receivables Trust						Toyota Motor Credit Corp
	2015-2						2.10%, 01/17/2019			1,250		1,255
	0.83%, 09/10/2018 (b)			750		749
	Capital Auto Receivables Asset Trust 2013-1									$		7,236
	0.97%, 01/22/2018			1,000		1,001	Banks - 15.93	%
	Capital Auto Receivables Asset Trust 2014-1						Bank of America NA
	0.68%, 05/20/2016 (b)			220		220	0.57%, 06/15/2016 (b)			1,000		997
	Capital Auto Receivables Asset Trust 2014-3						0.59%, 06/15/2017 (b)			750		744
	0.51%, 02/21/2017 (b)			1,800		1,799	1.25%, 02/14/2017			500		500
	CPS Auto Receivables Trust 2013-A						5.30%, 03/15/2017			3,900		4,131
	1.31%, 06/15/2020 (a),(b)			1,094		1,091	Bank of New York Mellon Corp/The
	CPS Auto Receivables Trust 2013-B						2.20%, 05/15/2019			1,000		1,004
	1.82%, 09/15/2020 (a),(b)			608		608	BB&T Corp
	CPS Auto Receivables Trust 2013-C						0.94%, 02/01/2019 (b)			500		500
	1.64%, 04/16/2018 (a)			355		356	Branch Banking & Trust Co
	CPS Auto Receivables Trust 2013-D						0.58%, 05/23/2017 (b)			1,750		1,742
	1.54%, 07/16/2018 (a),(b)			431		431	0.61%, 09/13/2016 (b)			1,300		1,296
	CPS Auto Receivables Trust 2014-C						Capital One Financial Corp
	1.31%, 02/15/2019 (a),(b)			910		910	6.15%, 09/01/2016			1,316		1,389
	CPS Auto Receivables Trust 2014-D						Capital One NA/Mclean VA
	1.49%, 04/15/2019 (a)			812		816	0.96%, 02/05/2018 (b)			1,000		1,000
	CPS Auto Trust						1.65%, 02/05/2018			1,000		992
	1.48%, 03/16/2020 (a)			219		219	Citigroup Inc
	Ford Credit Auto Owner Trust/Ford Credit						1.70%, 04/27/2018			1,500		1,490
	2014-RE	V1					6.13%, 05/15/2018			2,000		2,232
	2.26%, 11/15/2025 (a),(b)			1,000		1,012	Goldman Sachs Group Inc/The
	Santander Drive Auto Receivables Trust 2014-						1.37%, 11/15/2018 (b)			1,250		1,261
	1						1.44%, 04/23/2020 (b)			1,500		1,515
	0.56%, 06/15/2017 (b)			83		83	2.60%, 04/23/2020			300		298
	0.66%, 06/15/2017 (b)			364		364	JP Morgan Chase Bank NA
	Santander Drive Auto Receivables Trust 2014-						5.88%, 06/13/2016			1,250		1,306
	2						6.00%, 10/01/2017			3,000		3,271
	0.54%, 07/17/2017 (b)			298		298	KeyBank NA/Cleveland OH
	Santander Drive Auto Receivables Trust 2014-						1.70%, 06/01/2018			500		499
	3						5.45%, 03/03/2016			1,075		1,108
	0.54%, 08/15/2017 (b)			408		408	Morgan Stanley
							1.13%, 01/24/2019 (b)			2,750		2,749
							1.56%, 04/25/2018 (b)			1,500		1,522

See accompanying notes.

72

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
		Principal						Principal
BONDS (continued)		Amount (000's)           Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Banks (continued)					Electric - 4.84%
Morgan Stanley (continued)					Dominion Resources Inc/VA
1.88%, 01/05/2018	$	500	$	501	1.40%, 09/15/2017		$	1,000	$	1,000
National City Bank/Cleveland OH					Indiantown Cogeneration LP
0.65%, 06/07/2017 (b)		500		498	9.77%, 12/15/2020			413		473
PNC Bank NA					LG&E and KU Energy LLC
1.60%, 06/01/2018		750		749	2.13%, 11/15/2015			1,250		1,255
4.88%, 09/21/2017		1,700		1,815	NextEra Energy Capital Holdings Inc
6.88%, 04/01/2018		250		283	1.59%, 06/01/2017			500		501
PNC Funding Corp					7.30%, 09/01/2067 (b)			1,000		1,038
5.63%, 02/01/2017		400		425	Public Service Co of New Mexico
SunTrust Bank/Atlanta GA					7.95%, 05/15/2018			2,250		2,618
0.57%, 08/24/2015 (b)		1,000		1,000	San Diego Gas & Electric Co
7.25%, 03/15/2018		1,500		1,706	1.91%, 02/01/2022			300		301
US Bank NA/Cincinnati OH					Southern California Edison Co
0.76%, 10/28/2019 (b)		1,250		1,253	1.85%, 02/01/2022			615		614
Wells Fargo Bank NA					Talen Energy Supply LLC
6.00%, 11/15/2017		750		826	5.70%, 10/15/2035			1,400		1,400
		$		40,602	6.50%, 05/01/2018			250		268
					Texas-New Mexico Power Co
Beverages - 0.61%					9.50%, 04/01/2019 (a)			300		372
Anheuser-Busch InBev Finance Inc					TransAlta Corp
2.15%, 02/01/2019		500		502	6.65%, 05/15/2018			2,250		2,487
SABMiller Holdings Inc								$		12,327
0.97%, 08/01/2018 (a),(b)		500		501
2.45%, 01/15/2017 (a)		535		543	Finance - Mortgage Loan/Banker - 4.79%
		$		1,546	Fannie Mae
					1.63%, 01/21/2020			7,000		6,990
Biotechnology - 0.78%					1.75%, 09/12/2019			2,500		2,520
Amgen Inc					Freddie Mac
1.25%, 05/22/2017		1,000		999	1.38%, 05/01/2020			2,750		2,711
2.20%, 05/22/2019		1,000		997				$		12,221
		$		1,996
					Food - 0.85	%
Chemicals - 1.06%					HJ Heinz Co
Airgas Inc					1.60%, 06/30/2017 (a),(d)			500		500
1.65%, 02/15/2018		1,200		1,193	2.00%, 07/02/2018 (a),(d)			400		400
3.25%, 10/01/2015		1,500		1,506	Ingredion Inc
		$		2,699	3.20%, 11/01/2015			1,250		1,258
Commercial Services - 0.28%								$		2,158
ERAC USA Finance LLC
6.38%, 10/15/2017 (a)		645		709	Gas - 0.74	%
					Laclede Group Inc/The
					1.02%, 08/15/2017 (b)			1,900		1,897
Computers - 0.94%
Apple Inc					Healthcare - Products - 0.69%
0.90%, 05/12/2017		400		400	Becton Dickinson and Co
1.00%, 05/03/2018		500		495	1.80%, 12/15/2017			500		500
International Business Machines Corp					2.68%, 12/15/2019			500		501
1.95%, 02/12/2019		1,500		1,506	Medtronic Inc
		$		2,401	2.50%, 03/15/2020 (a)			750		751
Credit Card Asset Backed Securities - 0.92%								$		1,752
Cabela's Credit Card Master Note Trust
0.54%, 03/16/2020 (b)		390		390	Healthcare - Services - 0.60%
0.64%, 07/15/2022 (b)		750		749	Anthem Inc
0.67%, 06/15/2020(a),(b)		500		501	5.88%, 06/15/2017			500		543
0.72%, 02/18/2020 (a),(b)		710		712	Roche Holdings Inc
					0.61%, 09/30/2019 (a),(b)			1,000		999
		$		2,352				$		1,542
Diversified Financial Services - 3.33%					Home Equity Asset Backed Securities - 3.09%
General Electric Capital Corp					ABFC 2005-WMC1 Trust
0.79%, 01/14/2019 (b)		1,750		1,751	0.85%, 06/25/2035 (b)			448		444
2.30%, 01/14/2019		500		507	ACE Securities Corp Home Equity Loan Trust
5.63%, 09/15/2017		250		272	Series 2005-HE2
Jefferies Group LLC					0.91%, 04/25/2035 (b)			280		279
3.88%, 11/09/2015		1,500		1,513	ACE Securities Corp Home Equity Loan Trust
MassMutual Global Funding II					Series 2005-WF1
2.00%, 04/05/2017 (a)		550		557	0.87%, 05/25/2035 (b)			191		191
2.10%, 08/02/2018 (a)		750		759
2.35%, 04/09/2019 (a)		250		252	Asset Backed Securities Corp Home Equity
					Loan Trust Series OOMC 2005-HE6
Murray Street Investment Trust I					0.70%, 07/25/2035 (b)			547		543
4.65%, 03/09/2017 (b)		2,750		2,889
					Bayview Financial Acquisition Trust
		$		8,500	0.82%, 08/28/2044 (b)			383		381
					5.66%, 12/28/2036 (b)			24		24

See accompanying notes.

73

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
		Principal							Principal
BONDS (continued)		Amount (000's)                   Value (000's)				BONDS (continued)		Amount (000's)       Value (000's)
Home Equity Asset Backed Securities (continued)						Iron & Steel - 0.40%
Bear Stearns Asset Backed Securities I Trust						ArcelorMittal
2006	-PC1					4.50%, 03/01/2016 (b)		$	1,000	$	1,015
0.51%, 12/25/2035 (b)		$	395	$	393
Home Equity Asset Trust 2005-4
0.89%, 10/25/2035 (b)			970		950	Machinery - Diversified - 0.98%
						John Deere Capital Corp
JP Morgan Mortgage Acquisition Corp 2005-						1.35%, 01/16/2018			1,000		1,003
FLD1
0.92%, 07/25/2035 (b)			54		54	2.05%, 03/10/2020			1,500		1,484
JP Morgan Mortgage Acquisition Corp 2005-									$		2,487
OPT1						Manufactured Housing Asset Backed Securities - 0.03%
0.64%, 06/25/2035 (b)			243		241	Green Tree Financial Corp
New Century Home Equity Loan Trust 2005-						7.70%, 09/15/2026			65		68
3						Mid-State Trust IV
0.67%, 07/25/2035 (b)			299		297	8.33%, 04/01/2030			11		12
RAMP Series 2005-EFC2 Trust									$		80
0.66%, 07/25/2035 (b)			30		31
RASC Series 2003-KS10 Trust						Media - 0.35	%
4.47%, 03/25/2032			239		241	Time Warner Cable Inc
RASC Series 2005-AHL2 Trust						8.25%, 04/01/2019			750		882
0.54%, 10/25/2035 (b)			219		215
Soundview Home Loan Trust 2005-CTX1						Mining - 0.69%
0.60%, 11/25/2035 (b)			475		469	Glencore Finance Canada Ltd
Structured Asset Securities Corp Mortgage						2.70%, 10/25/2017 (a),(b)			1,250		1,263
Loan Trust Series 2005-GEL4						Teck Resources Ltd
0.80%, 08/25/2035 (b)			194		185	5.38%, 10/01/2015			500		504
Terwin Mortgage Trust 2005-2HE									$		1,767
0.57%, 01/25/2035 (a),(b)			15		15
Terwin Mortgage Trust Series TMTS 2005-						Mortgage Backed Securities - 8.08%
14	HE					Adjustable Rate Mortgage Trust 2004-2
4.85%, 08/25/2036 (b)			203		208	1.33%, 02/25/2035 (b)			26		26
Wells Fargo Home Equity Asset-Backed						Alternative Loan Trust 2004-J8
Securities 2004-2 Trust						6.00%, 02/25/2017			27		27
0.61%, 10/25/2034 (b)			53		52	Banc of America Alternative Loan Trust 2003-
5.00%, 10/25/2034			2,559		2,553	10
Wells Fargo Home Equity Asset-Backed						5.00%, 12/25/2018			170		173
Securities 2005-2 Trust						Banc of America Funding 2004-1 Trust
0.60%, 11/25/2035 (b)			105		105	5.25%, 02/25/2019			34		35
			$		7,871	Banc of America Funding 2004-3 Trust
						4.75%, 09/25/2019			140		142
Home Furnishings - 0.59%						Banc of America Mortgage Trust 2004-8
Samsung Electronics America Inc						5.25%, 10/25/2019			59		61
1.75%, 04/10/2017 (a)			1,500		1,510	Banc of America Mortgage Trust 2005-7
						5.00%, 08/25/2020			5		5
Insurance - 5.74%						BCAP LLC 2011-RR11 Trust
Berkshire Hathaway Finance Corp						2.58%, 03/26/2035 (a),(b)			273		274
1.60%, 05/15/2017			1,500		1,516	CHL Mortgage Pass-Through Trust 2003-46
Chubb Corp/The						2.47%, 01/19/2034 (b)			151		151
6.38%, 03/29/2067 (b)			250		262	CHL Mortgage Pass-Through Trust 2004-19
Hartford Financial Services Group Inc/The						5.25%, 10/25/2034			10		10
8.13%, 06/15/2068 (b)			500		562	CHL Mortgage Pass-Through Trust 2004-J1
Lincoln National Corp						4.50%, 01/25/2019 (b)			30		31
7.00%, 05/17/2066 (b)			500		454	CHL Mortgage Pass-Through Trust 2004-J7
MetLife Inc						5.00%, 09/25/2019			127		130
6.82%, 08/15/2018			750		863	Citigroup Mortgage Loan Trust 2009-6
Metropolitan Life Global Funding I						2.68%, 07/25/2036 (a),(b)			84		84
1.30%, 04/10/2017 (a)			750		752	Credit Suisse First Boston Mortgage Securities
2.30%, 04/10/2019 (a)			1,000		1,006	Corp
New York Life Global Funding						1.15%, 05/25/2034 (b)			114		111
1.45%, 12/15/2017 (a)			1,250		1,249	5.00%, 09/25/2019			27		26
1.95%, 02/11/2020 (a)			1,200		1,182	5.00%, 10/25/2019			141		142
2.15%, 06/18/2019 (a)			1,150		1,153	Credit Suisse Mortgage Capital Certificates
2.45%, 07/14/2016 (a)			1,000		1,019	2.25%, 07/27/2037 (a),(b)			163		163
Prudential Covered Trust 2012-1						Freddie Mac REMICS
3.00%, 09/30/2015 (a)			2,323		2,335	0.64%, 06/15/2023 (b)			3		3
Prudential Financial Inc						Ginnie Mae
8.88%, 06/15/2068 (b)			1,950		2,282	0.59%, 07/16/2054 (b)			4,641		257
						0.70%, 03/16/2049 (b)			6,772		303
			$		14,635	0.86%, 09/16/2055 (b)			8,606		542
Internet - 0.39%						0.89%, 03/16/2052 (b)			4,744		367
Amazon.com Inc						0.92%, 10/16/2054 (b)			5,666		351
2.60%, 12/05/2019			1,000		1,006	0.92%, 10/16/2054 (b)			6,238		334
						0.93%, 01/16/2055 (b)			9,170		499

See accompanying notes.

74

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
		Principal					Principal
BONDS (continued)		Amount (000's)    Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Mortgage Backed Securities (continued)					Oil & Gas (continued)
Ginnie Mae (continued)					Shell International Finance BV
0.93%, 06/16/2055 (b)	$	9,765	$	588	2.13%, 05/11/2020	$	750	$	748
0.97%, 02/16/2055(b)		9,454		448	Total Capital International SA
1.01%, 10/16/2054 (b)		6,585		397	0.85%, 08/10/2018 (b)		550		552
1.05%, 01/16/2054 (b)		5,162		319	1.55%, 06/28/2017		1,000		1,009
1.14%, 08/16/2042 (b)		14,876		1,029			$		8,864
1.15%, 06/16/2045 (b)		12,178		868
1.21%, 07/16/2056 (b)		995		86	Oil & Gas Services - 0.80%
1.22%, 02/16/2046 (b)		9,597		723	Weatherford International Ltd/Bermuda
1.41%, 12/16/2036 (b)		4,329		322	5.50%, 02/15/2016		2,000		2,043
4.50%, 08/20/2032		26		26
GSMSC Pass-Through Trust 2009-4R					Other Asset Backed Securities - 5.75%
0.63%, 12/26/2036 (a),(b)		485		479	Ameriquest Mortgage Securities Inc Asset-
JP Morgan Mortgage Trust 2004-A3					Backed Pass-Through Ctfs Ser 2004-R11
2.35%, 07/25/2034 (b)		80		80	0.79%, 11/25/2034 (b)		53		53
JP Morgan Mortgage Trust 2004-S1					Ameriquest Mortgage Securities Inc Asset-
5.00%, 09/25/2034		385		399	Backed Pass-Through Ctfs Ser 2005-R1
JP Morgan Resecuritization Trust Series 2010-					0.86%, 03/25/2035 (b)		475		473
4					Carrington Mortgage Loan Trust Series 2005-
2.27%, 10/26/2036 (a),(b)		184		184	NC4
MASTR Alternative Loan Trust 2003-9					0.59%, 09/25/2035 (b)		155		153
6.50%, 01/25/2019		106		111	Citigroup Mortgage Loan Trust Inc
MASTR Asset Securitization Trust 2004-11					0.62%, 07/25/2035 (b)		77		77
5.00%, 12/25/2019		30		30	Credit-Based Asset Servicing and
MASTR Asset Securitization Trust 2004-9					Securitization LLC
5.00%, 09/25/2019		86		88	4.26%, 08/25/2035 (b)		30		30
PHH Mortgage Trust Series 2008-CIM1					4.67%, 07/25/2035 (b)		358		361
5.22%, 06/25/2038		523		532	CWABS Asset-Backed Certificates Trust
Prime Mortgage Trust 2005-2					2005-3
5.25%, 07/25/2020 (b)		210		214	0.63%, 08/25/2035 (b)		354		353
Provident Funding Mortgage Loan Trust 2005-					Drug Royalty II LP 2
1					3.48%, 07/15/2023 (a),(b)		1,360		1,379
0.48%, 05/25/2035 (b)		515		496	FFMLT Trust 2005-FF2
RALI Series 2003-QS23 Trust					0.85%, 03/25/2035 (b)		38		38
5.00%, 12/26/2018		346		351	Fieldstone Mortgage Investment Trust Series
RALI Series 2004-QS3 Trust					2005-1
5.00%, 03/25/2019		130		131	1.26%, 03/25/2035 (b)		335		335
RBSSP Resecuritization Trust 2009-7					First Franklin Mortgage Loan Trust 2005-
0.58%, 06/26/2037 (a),(b)		90		86	FF4
5.00%, 09/26/2036(a),(b)		62		64	0.62%, 05/25/2035 (b)		136		136
Sequoia Mortgage Trust 2013-4					Green Tree Home Improvement Loan Trust
1.55%, 04/25/2043 (b)		1,797		1,738	7.45%, 09/15/2025		1		1
Sequoia Mortgage Trust 2013-8					JP Morgan Mortgage Acquisition Corp 2005-
2.25%, 06/25/2043 (b)		1,177		1,135	OPT2
Springleaf Mortgage Loan Trust 2012-3					0.48%, 12/25/2035 (b)		565		557
1.57%, 12/25/2059 (a),(b)		1,019		1,021	Mastr Specialized Loan Trust
2.66%, 12/25/2059 (a),(b)		500		502	1.44%, 11/25/2034 (a),(b)		87		90
3.56%, 12/25/2059 (a)		200		202	NYCTL 2014-A Trust
Springleaf Mortgage Loan Trust 2013-1					1.03%, 11/10/2027 (a),(c)		179		179
1.27%, 06/25/2058 (a),(b)		1,886		1,884	OneMain Financial Issuance Trust 2014-1
2.31%, 06/25/2058(a),(b)		560		562	2.43%, 06/18/2024 (a),(b)		900		905
Springleaf Mortgage Loan Trust 2013-2					OneMain Financial Issuance Trust 2014-2
1.78%, 12/25/2065 (a)		630		632	2.47%, 09/18/2024 (a),(c)		2,000		2,011
3.52%, 12/25/2065 (a),(b)		569		580	OneMain Financial Issuance Trust 2015-2
WaMu Mortgage Pass-Through Certificates					2.57%, 07/18/2025 (a),(c)		1,500		1,501
Series 2003-S8 Trust					PFS Financing Corp
5.00%, 09/25/2018		38		38	0.74%, 02/15/2018 (a),(b)		2,000		1,998
		$		20,592	0.79%, 02/15/2019 (a),(b)		750		748
					0.79%, 10/15/2019 (a),(b)		500		498
Oil & Gas - 3.48%					0.81%, 04/15/2020 (a),(b)		500		500
BP Capital Markets PLC					PFS Tax Lien Trust 2014-1
4.75%, 03/10/2019		1,500		1,641	1.44%, 04/15/2016 (a),(b)		685		687
Chevron Corp					RAMP Series 2005-RZ4 Trust
1.37%, 03/02/2018		500		500	0.59%, 11/25/2035 (b)		337		335
1.72%, 06/24/2018		1,300		1,308	Securitized Asset Backed Receivables LLC
Chevron Phillips Chemical Co LLC / Chevron					Trust 2006-OP1
Phillips Chemical Co LP					0.49%,  10/25/2035 (b)		24		23
1.70%, 05/01/2018 (a)		750		749
2.45%, 05/01/2020 (a)		250		249	Springleaf Funding Trust 2013-A
					2.58%, 09/15/2021 (a),(b)		440		441
Phillips 66					Trafigura Securitisation Finance PLC 2014-1
2.95%, 05/01/2017		1,500		1,542	1.14%, 10/15/2021 (a),(b),(c)		700		700
Rowan Cos Inc
7.88%, 08/01/2019		500		566

See accompanying notes.

75

Schedule of Investments
Short-Term Income Account
June 30, 2015 (unaudited)
				Principal						Principal
	BONDS (continued)			Amount (000's)         Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
	Other Asset Backed Securities (continued)						Software - 0.91%
	Wachovia Mortgage Loan Trust Series 2005-						Microsoft Corp
	WMC1						1.85%, 02/12/2020		$	1,000	$	1,001
	0.93%, 10/25/2035 (b)		$	105	$	104	Oracle Corp
				$		14,666	2.25%, 10/08/2019			750		754
							5.75%, 04/15/2018			500		556
	Pharmaceuticals - 2.96%									$		2,311
	Abbott Laboratories
	2.00%, 03/15/2020			2,000		1,985	Student Loan Asset Backed Securities - 4.02%
	AbbVie Inc						KeyCorp Student Loan Trust 2004-A
	1.20%, 11/06/2015			2,500		2,502	0.58%, 10/28/2041 (b)			170		168
	1.80%, 05/14/2018			300		299	KeyCorp Student Loan Trust 2006-A
	2.50%, 05/14/2020			500		495	0.46%, 06/27/2029 (b)			126		126
	Actavis Funding SCS						0.58%, 09/27/2035 (b)			2,500		2,430
	1.85%, 03/01/2017			500		503	SLC Private Student Loan Trust 2006-A
	2.35%, 03/12/2018			750		754	0.45%, 07/15/2036 (b)			962		956
	Merck & Co Inc						SLC Private Student Loan Trust 2010-B
	1.10%, 01/31/2018			1,000		998	3.69%, 07/15/2042 (a),(b)			392		408
				$		7,536	SLM Private Credit Student Loan Trust 2002-
							A
	Pipelines - 2.62%						0.84%, 12/16/2030 (b)			1,141		1,126
	Buckeye Partners LP						SLM Private Credit Student Loan Trust 2004-
	2.65%, 11/15/2018			965		962	A
	Columbia Pipeline Group Inc						0.49%, 03/16/2020 (b)			128		128
	2.45%, 06/01/2018 (a)			250		252	0.69%, 06/15/2033 (b)			250		240
	3.30%, 06/01/2020 (a)			250		251
	DCP Midstream LLC						SLM Private Credit Student Loan Trust 2004-
	5.38%, 10/15/2015 (a)			810		810	B
							0.49%, 06/15/2021 (b)			974		969
	Florida Gas Transmission Co LLC
	4.00%, 07/15/2015 (a)			1,000		1,001	SLM Private Credit Student Loan Trust 2005-
	7.90%, 05/15/2019 (a)			830		977	B
							0.47%, 03/15/2023 (b)			978		973
	Hiland Partners LP / Hiland Partners Finance						0.56%, 12/15/2023 (b)			350		341
	Corp
	7.25%, 10/01/2020 (a)			1,068		1,153	SLM Private Credit Student Loan Trust 2006-
							A
	TransCanada PipeLines Ltd						0.48%, 12/15/2023 (b)			275		272
	6.35%, 05/15/2067 (b)			500		475
							SLM Private Education Loan Trust 2013-A
	Williams Partners LP / ACMP Finance Corp						0.79%, 08/15/2022 (a),(b)			732		732
	6.13%, 07/15/2022			750		797	SLM Private Education Loan Trust 2013-B
				$		6,678	0.84%, 07/15/2022 (a),(b)			560		561
							1.85%, 06/17/2030 (a),(b)			500		496
	Real Estate - 0.78%
	Prologis LP						SLM Private Education Loan Trust 2014-A
	7.38%, 10/30/2019			741		877	0.79%, 07/15/2022 (a),(b)			316		317
	WEA Finance LLC / Westfield UK & Europe									$		10,243
	Finance PLC
	1.75%, 09/15/2017 (a)			600		602	Telecommunications - 2.36%
	2.70%, 09/17/2019 (a)			500		501	AT&T Inc
							0.66%, 02/12/2016 (b)			1,000		998
				$		1,980	2.45%, 06/30/2020			500		490
	REITS - 2.76	%					3.00%, 06/30/2022			300		290
	Alexandria Real Estate Equities Inc						Cisco Systems Inc
	2.75%, 01/15/2020			1,500		1,485	4.95%, 02/15/2019			1,500		1,656
	BioMed Realty LP						Verizon Communications Inc
	2.63%, 05/01/2019			500		498	2.04%, 09/14/2018 (b)			500		517
	3.85%, 04/15/2016			1,000		1,019	3.65%, 09/14/2018			1,500		1,578
	HCP Inc						Vodafone Group PLC
	6.30%, 09/15/2016			1,121		1,183	1.63%, 03/20/2017			500		498
	Health Care REIT Inc									$		6,027
	3.63%, 03/15/2016			750		761	Transportation - 0.30%
	Healthcare Realty Trust Inc						Ryder System Inc
	5.75%, 01/15/2021			510		565	2.45%, 11/15/2018			750		754
	Kimco Realty Corp
	4.30%, 02/01/2018			500		531
	Ventas Realty LP						Trucking & Leasing - 0.20%
	1.55%, 09/26/2016			750		753	Penske Truck Leasing Co Lp / PTL Finance
	Ventas Realty LP / Ventas Capital Corp						Corp
	2.70%, 04/01/2020			250		249	2.50%, 03/15/2016 (a)			500		504
				$		7,044
							TOTAL BONDS			$		246,786
	Savings & Loans - 0.00%
	Washington Mutual Bank / Henderson NV						U.S. GOVERNMENT & GOVERNMENT			Principal
	0.00%, 01/15/2013 (e)			200		—	AGENCY OBLIGATIONS - 0.21%		Amount (000's)   Value (000's)
							Federal Home Loan Mortgage Corporation (FHLMC) -
							0.02	%
							2.27%, 11/01/2021 (b)		$	1	$	1
							2.43%, 09/01/2035 (b)			49		53

See accompanying notes.

76

					Schedule of Investments
					Short-Term Income Account
					June 30, 2015 (unaudited)
U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)			Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)
(continued)
6.00%, 05/01/2017		$	6	$	6
9.50%, 08/01/2016			1		1
			$		61
Federal National Mortgage Association (FNMA) - 0.18%
1.88%, 04/01/2033 (b)			140		147
2.13%, 07/01/2034 (b)			60		65
2.16%, 12/01/2032 (b)			25		26
2.19%, 08/01/2034 (b)			22		23
2.31%, 02/01/2037 (b)			69		73
2.37%, 01/01/2035 (b)			36		38
2.41%, 11/01/2032 (b)			8		9
2.43%, 02/01/2035 (b)			8		9
2.63%, 12/01/2033 (b)			28		29
4.16%, 11/01/2035 (b)			2		2
5.60%, 04/01/2019 (b)			1		1
8.00%, 05/01/2027			20		21
8.50%, 11/01/2017			1		1
			$		444
Government National Mortgage Association (GNMA) -
0.01	%
9.00%, 12/15/2020			2		2
9.00%, 04/20/2025			1		1
10.00%, 02/15/2025			1		1
10.00%, 04/15/2025			1		1
10.00%, 06/15/2020			5		5
10.00%, 09/15/2018			2		2
10.00%, 09/15/2018			2		2
10.00%, 05/15/2020			5		5
10.00%, 02/15/2019			16		16
			$		35
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS			$		540
Total Investments			$		254,310
Other Assets in Excess of Liabilities, Net - 0.22%			$		560
TOTAL NET ASSETS - 100.00%			$		254,870

(a)	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 $62,793 or 24.64% of net assets.
(b)	Variable Rate. Rate shown is in effect at June 30, 2015.
(c)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $5,641 or 2.21% of net assets.
(d)	Security purchased on a when-issued basis.
(e)	Non-Income Producing Security

Portfolio Summary (unaudited)
Sector	Percent
Financial	28.54	%
Asset Backed Securities	22.53	%
Mortgage Securities	8.29	%
Consumer, Non-cyclical	7.64	%
Energy	6.90	%
Utilities	5.58	%
Government	4.79	%
Consumer, Cyclical	4.19	%
Communications	3.10	%
Exchange Traded Funds	2.74	%
Basic Materials	2.15	%
Technology	1.85	%
Industrial	1.48	%
Other Assets in Excess of Liabilities, Net	0.22	%
TOTAL NET ASSETS	100.00	%

See accompanying notes.

77

Schedule of Investments
SmallCap Blend Account
June 30, 2015 (unaudited)
COMMON STOCKS - 98.37%	Shares Held    Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)
Aerospace & Defense - 2.14%				Commercial Services (continued)
Astronics Corp (a)	24,100	$	1,708	TransUnion (a)	27,910	$	700
Esterline Technologies Corp (a)	12,710		1,212		$		18,728
Spirit AeroSystems Holdings Inc (a)	39,440		2,174
				Computers - 4.31%
	$		5,094	Barracuda Networks Inc (a)	31,620		1,253
				CACI International Inc (a)	34,030		2,753
Apparel - 2.24%
G-III Apparel Group Ltd (a)	45,750		3,219	Manhattan Associates Inc (a)	58,190		3,471
Skechers U.S.A. Inc (a)	19,090		2,096	NetScout Systems Inc (a)	75,740		2,777
	$		5,315		$		10,254
Automobile Parts & Equipment - 1.92%				Diversified Financial Services - 1.35%
American Axle & Manufacturing Holdings Inc	67,570		1,413	Cowen Group Inc (a)	121,200		776
(a)				Evercore Partners Inc - Class A	24,110		1,301
Cooper Tire & Rubber Co	93,104		3,150	WisdomTree Investments Inc	51,120		1,123
	$		4,563		$		3,200
Banks - 8.15%				Electric - 2.11%
Central Pacific Financial Corp	57,490		1,365	8Point3 Energy Partners LP (a)	82,170		1,530
Chemical Financial Corp	13,980		462	Avista Corp	57,346		1,758
First Merchants Corp	12,730		314	NRG Yield Inc	47,080		1,035
First of Long Island Corp/The	13,215		366	Portland General Electric Co	21,270		705
FNB Corp/PA	130,280		1,866		$		5,028
Hanmi Financial Corp	24,328		604
				Electronics - 0.53%
National Penn Bancshares Inc	144,510		1,630	Fitbit Inc (a)	11,450		438
PacWest Bancorp	67,430		3,153	Fluidigm Corp (a)	10,538		255
PrivateBancorp Inc	72,240		2,877	Itron Inc (a)	16,710		575
Renasant Corp	24,990		815
WesBanco Inc	25,890		881		$		1,268
Western Alliance Bancorp (a)	57,790		1,951
				Energy - Alternate Sources - 0.70%
Wilshire Bancorp Inc	38,440		486	Pattern Energy Group Inc	58,947		1,673
Wintrust Financial Corp	48,860		2,608
	$		19,378
				Engineering & Construction - 1.94%
Biotechnology - 3.22%				Dycom Industries Inc (a)	25,950		1,527
Acceleron Pharma Inc (a)	12,290		389	EMCOR Group Inc	64,700		3,091
Aratana Therapeutics Inc (a)	34,171		517		$		4,618
Ardelyx Inc (a)	11,253		180
Avalanche Biotechnologies Inc (a)	2,034		33	Entertainment - 2.63%
Bellicum Pharmaceuticals Inc (a)	8,980		191	Marriott Vacations Worldwide Corp	37,530		3,443
BIND Therapeutics Inc (a)	42,844		240	Vail Resorts Inc	25,710		2,808
BIND Therapeutics Inc - Warrants (a),(b)	1,938		3		$		6,251
Bluebird Bio Inc (a)	2,918		491
				Food - 1.48%
Cambrex Corp (a)	19,820		871	Cal-Maine Foods Inc	30,690		1,602
Cytokinetics Inc - Warrants (a),(b),(c)	12,207		3	SUPERVALU Inc (a)	237,130		1,918
Epizyme Inc (a)	10,750		258		$		3,520
Exact Sciences Corp (a)	30,307		901
Fate Therapeutics Inc (a)	46,420		300	Forest Products & Paper - 0.80%
Genocea Biosciences Inc (a)	26,716		367	Clearwater Paper Corp (a)	33,030		1,893
Insmed Inc (a)	24,870		607
Intercept Pharmaceuticals Inc (a)	1,310		316	Gas - 0.52%
MacroGenics Inc (a)	14,370		546	Southwest Gas Corp	23,080		1,228
NewLink Genetics Corp (a)	8,590		380
Puma Biotechnology Inc (a)	2,390		279
Seattle Genetics Inc (a)	6,550		317	Hand & Machine Tools - 0.75%
Spark Therapeutics Inc (a)	2,280		137	Regal Beloit Corp	24,430		1,773
Sunesis Pharmaceuticals Inc (a)	47,552		143
Versartis Inc (a)	11,427		174
				Healthcare - Products - 2.02%
	$		7,643	EndoChoice Holdings Inc (a)	31,360		513
Building Materials - 1.57%				ICU Medical Inc (a)	19,890		1,902
Boise Cascade Co (a)	56,950		2,089	K2M Group Holdings Inc (a)	50,320		1,209
Eagle Materials Inc	9,440		721	LDR Holding Corp (a)	20,040		867
				STAAR Surgical Co (a)	31,650		306
Universal Forest Products Inc	17,960		934
	$		3,744		$		4,797
Commercial Services - 7.88%				Healthcare - Services - 3.63%
ABM Industries Inc	61,690		2,028	Acadia Healthcare Co Inc (a)	36,470		2,856
Huron Consulting Group Inc (a)	23,250		1,630	Centene Corp (a)	30,350		2,440
Korn/Ferry International	86,270		3,000	HealthSouth Corp	68,650		3,162
Live Nation Entertainment Inc (a)	44,731		1,230	Teladoc Inc (a),(b)	8,870		169
Navigant Consulting Inc (a)	33,270		495		$		8,627
On Assignment Inc (a)	40,690		1,598
(a)				Home Builders - 0.77%
PAREXEL International Corp	41,660		2,679	Installed Building Products Inc (a)	74,575		1,826
Sabre Corp	102,500		2,439
Team Health Holdings Inc (a)	44,840		2,929

See accompanying notes.

78

Schedule of Investments
SmallCap Blend Account
June 30, 2015 (unaudited)
COMMON STOCKS (continued)	Shares Held     Value (000's)			COMMON STOCKS (continued)	Shares Held	Value (000			's)
Insurance - 5.53%				REITS (continued)
American Equity Investment Life Holding Co	53,740	$	1,450	LaSalle Hotel Properties	79,280		$	2,811
AmTrust Financial Services Inc	48,910		3,204	QTS Realty Trust Inc	33,490			1,221
First American Financial Corp	76,430		2,844			$		16,405
Primerica Inc	28,350		1,295
Radian Group Inc	136,010		2,552	Retail - 8.10%
Validus Holdings Ltd	40,700		1,790	Caleres Inc	105,870			3,365
				Citi Trends Inc (a)	15,890			385
	$		13,135	Flex Pharma Inc (a)	9,480			163
Internet - 2.28%				Freshpet Inc (a)	22,500			418
CDW Corp/DE	90,713		3,110	Kirkland's Inc	42,951			1,197
GoDaddy Inc (a)	12,330		348	Office Depot Inc (a)	401,636			3,478
Intralinks Holdings Inc (a)	71,800		855	Penske Automotive Group Inc	42,635			2,222
MaxPoint Interactive Inc (a)	69,240		559	Red Robin Gourmet Burgers Inc (a)	23,554			2,021
Rubicon Project Inc/The (a)	36,082		540	Rite Aid Corp (a)	372,470			3,110
	$		5,412	Wendy's Co/The	257,280			2,902
						$		19,261
Investment Companies - 0.73%
Apollo Investment Corp	244,910		1,734	Savings & Loans - 0.91%
				Berkshire Hills Bancorp Inc	16,530			471
				Oritani Financial Corp	22,390			359
Machinery - Diversified - 0.00%
Gerber Scientific Inc (a),(b),(c)	1,974		—	Provident Financial Services Inc	69,840			1,326
						$		2,156
				Semiconductors - 2.13%
Miscellaneous Manufacturing - 0.86%				Entegris Inc (a)	89,110			1,298
AO Smith Corp	28,580		2,057	Micrel Inc	49,520			688
				Qorvo Inc (a)	38,475			3,089
Office Furnishings - 0.73%						$		5,075
Interface Inc	68,940		1,727
				Software - 6.23%
				2U Inc (a)	52,540			1,691
Oil & Gas - 2.43%				Acxiom Corp (a)	66,620			1,171
Carrizo Oil & Gas Inc (a)	23,770		1,170	Apigee Corp (a)	29,980			298
Magnum Hunter Resources Corp - Warrants	12,227		—	Appfolio Inc (a)	18,390			259
(a),(b),(c)				Aspen Technology Inc (a)	74,360			3,387
Northern Oil and Gas Inc (a)	112,940		765	Black Knight Financial Services Inc (a)	36,940			1,140
PDC Energy Inc (a)	17,230		924	Blackbaud Inc	47,040			2,679
RSP Permian Inc (a)	55,990		1,574	BroadSoft Inc (a)	12,940			447
Sanchez Energy Corp (a)	52,760		517	MINDBODY Inc (a)	39,950			553
Whiting Petroleum Corp (a)	24,611		827	SYNNEX Corp	32,970			2,413
	$		5,777	Workiva Inc (a)	55,860			773
Packaging & Containers - 0.36%						$		14,811
Graphic Packaging Holding Co	62,150		866	Telecommunications - 2.41%
				ARRIS Group Inc (a)	52,729			1,614
Pharmaceuticals - 5.07%				Leap Wireless International Inc - Rights (a),(b),(c)	1,375			3
Array BioPharma Inc (a)	60,430		436
Cerulean Pharma Inc (a)	47,323		218	Plantronics Inc	48,480			2,730
Clovis Oncology Inc (a)	6,770		595	West Corp	45,560			1,371
Concert Pharmaceuticals Inc (a)	25,560		380			$		5,718
DexCom Inc (a)	18,770		1,501
FibroGen Inc (a)	9,530		224	Transportation - 2.63%
(a),(b),(c)				ArcBest Corp	31,200			992
Furiex Pharmaceuticals Inc - Rights	104		1	Atlas Air Worldwide Holdings Inc (a)	38,340			2,107
Nektar Therapeutics (a)	36,430		456
(a)				Matson Inc	57,310			2,410
Nevro Corp	15,580		837	Navigator Holdings Ltd (a)	39,020			739
Orexigen Therapeutics Inc (a)	66,540		329
PRA Health Sciences Inc (a)	63,880		2,321			$		6,248
Prestige Brands Holdings Inc (a)	66,169		3,060	Trucking & Leasing - 0.26%
ProQR Therapeutics NV (a)	9,912		165	Greenbrier Cos Inc/The	13,240			620
Proteon Therapeutics Inc (a)	21,640		386
Revance Therapeutics Inc (a)	9,470		303	TOTAL COMMON STOCKS		$		233,816
SCYNEXIS Inc (a)	24,310		214	INVESTMENT COMPANIES - 1.88%	Shares Held	Value (000			's)
Vanda Pharmaceuticals Inc (a)	27,011		343
Zafgen Inc (a)	7,860		272	Publicly Traded Investment Fund - 1.88%
	$		12,041	BlackRock Liquidity Funds FedFund Portfolio	4,466,989			4,467
Publicly Traded Investment Fund - 0.15%				TOTAL INVESTMENT COMPANIES		$		4,467
THL Credit Inc	30,490		352	Total Investments		$		238,283
				Liabilities in Excess of Other Assets, Net - (0.25)%		$		(594	)
REITS - 6.90%				TOTAL NET ASSETS - 100.00%		$		237,689
CubeSmart	52,790		1,222
First Industrial Realty Trust Inc	131,880		2,470
Highwoods Properties Inc	109,210		4,363	(a) Non-Income Producing Security
Hudson Pacific Properties Inc	91,070		2,584
Kilroy Realty Corp	25,820		1,734

See accompanying notes.

79

Schedule of Investments
SmallCap Blend Account
June 30, 2015 (unaudited)

(b)	Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. At the end of the period, the fair value of these securities totaled $179 or 0.08% of net assets.
(c)	Security is Illiquid. At the end of the period, the value of these securities totaled $7 or 0.00% of net assets.

Portfolio Summary (unaudited)
Sector		Percent
Financial		23.72	%
Consumer, Non-cyclical		23.30	%
Consumer, Cyclical		16.39	%
Technology		12.67	%
Industrial		11.04	%
Communications		4.69	%
Energy		3.13	%
Utilities		2.63	%
Exchange Traded Funds		1.88	%
Basic Materials		0.80	%
Liabilities in Excess of Other Assets, Net		(0.25	)%
TOTAL NET ASSETS		100.00	%
Futures Contracts
										Unrealized
Type	Long/Short	Contracts		Notional Value			Fair Value	Appreciation/(Depreciation)
Russell 2000 Mini; September 2015	Long	4		$	506	$	500		$	(6	)
Total								$		(6	)
Amounts in thousands except contracts

See accompanying notes.

80

Glossary to the Schedule of Investments
June 30, 2015 (unaudited)

Currency Abbreviations
USD/$	United States Dollar

See accompanying notes.

81

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

					Net		Net Realized					Dividends		Total
			Net Asset Value,		Investment		and Unrealized			Total From		from Net		Dividends			Net Asset
			Beginning of		Income		Gain (Loss) on			Investment		Investment		and			Value, End
			Period		(Loss)(a)		Investments			Operations		Income		Distributions			of Period
DIVERSIFIED INTERNATIONAL ACCOUNT
Class 1 shares
2015	(c)	$	14.08	$	0.19	$	0.65		$	0.84		$–		$–		$	14.92
2014			14.87		0.24		(0.70	)		(0.46	)	(0.33	)	(0.33	)		14.08
2013			12.89		0.24		2.09			2.33		(0.35	)	(0.35	)		14.87
2012			11.12		0.27		1.76			2.03		(0.26	)	(0.26	)		12.89
2011			12.54		0.27		(1.67	)		(1.40	)	(0.02	)	(0.02	)		11.12
2010			11.24		0.17		1.31			1.48		(0.18	)	(0.18	)		12.54
Class 2 shares
2015	(c)		14.19		0.18		0.64			0.82		–		–			15.01
2014			14.97		0.21		(0.70	)		(0.49	)	(0.29	)	(0.29	)		14.19
2013			12.96		0.22		2.10			2.32		(0.31	)	(0.31	)		14.97
2012			11.18		0.23		1.76			1.99		(0.21	)	(0.21	)		12.96
2011			12.63		0.23		(1.66	)		(1.43	)	(0.02	)	(0.02	)		11.18
2010			11.32		0.14		1.32			1.46		(0.15	)	(0.15	)		12.63
EQUITY INCOME ACCOUNT
Class 1 shares
2015	(c)		23.12		0.29		(0.36	)		(0.07	)	–		–			23.05
2014			21.00		0.57		2.09			2.66		(0.54	)	(0.54	)		23.12
2013			17.03		0.54		4.04			4.58		(0.61	)	(0.61	)		21.00
2012			15.53		0.54		1.47			2.01		(0.51	)	(0.51	)		17.03
2011			14.80		0.50		0.30			0.80		(0.07	)	(0.07	)		15.53
2010			13.15		0.45		1.66			2.11		(0.46	)	(0.46	)		14.80
Class 2 shares
2015	(c)		22.96		0.26		(0.35	)		(0.09	)	–		–			22.87
2014			20.87		0.51		2.07			2.58		(0.49	)	(0.49	)		22.96
2013			16.92		0.49		4.02			4.51		(0.56	)	(0.56	)		20.87
2012			15.43		0.49		1.46			1.95		(0.46	)	(0.46	)		16.92
2011			14.74		0.45		0.31			0.76		(0.07	)	(0.07	)		15.43
2010			13.10		0.40		1.66			2.06		(0.42	)	(0.42	)		14.74

See accompanying notes.

82

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
						(unaudited)
			Net Assets, End of	Ratio of Expenses
Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
5.97	%(d)	$	397,313	0.87	%(e)	2.58	%(e)	47.2	%(e)
(3.21	)		429,194	0.86		1.64		62.1
18.40			501,094	0.87		1.78		79.5
18.44			464,751	0.87		2.23		76.0
(11.17	)		428,532	0.89		2.17		68.5
13.18			532,545	0.89		1.47		110.0	(f)
5.78	(d)		1,434	1.12	(e)	2.37	(e)	47.2	(e)
(3.41	)		1,266	1.11		1.38		62.1
18.18			1,458	1.12		1.61		79.5
18.01			1,643	1.12		1.95		76.0
(11.36	)		1,952	1.14		1.91		68.5
12.91			2,466	1.14		1.27		110.0	(f)
(0.30	) (d)		565,439	0.49	(e)	2.55	(e)	10.1	(e)
12.80			599,407	0.48		2.57		11.6
27.30			630,542	0.48		2.83		18.0
13.01			578,099	0.49		3.26		20.8
5.44			624,366	0.48		3.28		19.9
16.18			538,727	0.51		3.25		23.2
(0.39	) (d)		25,181	0.74	(e)	2.30	(e)	10.1	(e)
12.46			25,491	0.73		2.32		11.6
27.02			24,810	0.73		2.58		18.0
12.72			22,844	0.74		3.01		20.8
5.17			25,498	0.73		3.00		19.9
15.88			29,323	0.76		2.97		23.2

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Portfolio turnover rate excludes approximately $612,000 from portfolio realignment from the acquisition of International SmallCap Account.

See accompanying notes.

83

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains			Distributions
GOVERNMENT & HIGH QUALITY BOND ACCOUNT
Class 1 shares
2015	(c)	$	10.44	$	0.13	($	0.08	)	$	0.05		$–		$–		$–
2014			10.33		0.27		0.25			0.52		(0.41	)	–		(0.41		)
2013			10.87		0.27		(0.39	)		(0.12	)	(0.42	)	–		(0.42		)
2012			10.90		0.33		0.09			0.42		(0.45	)	–		(0.45		)
2011			10.29		0.36		0.28			0.64		(0.02	)	(0.01	)	(0.03		)
2010			10.07		0.38		0.20			0.58		(0.36	)	–		(0.36		)
Class 2 shares
2015	(c)		10.45		0.12		(0.08	)		0.04		–		–		–
2014			10.34		0.24		0.25			0.49		(0.38	)	–		(0.38		)
2013			10.88		0.25		(0.39	)		(0.14	)	(0.40	)	–		(0.40		)
2012			10.90		0.30		0.10			0.40		(0.42	)	–		(0.42		)
2011			10.32		0.34		0.27			0.61		(0.02	)	(0.01	)	(0.03		)
2010			10.09		0.36		0.21			0.57		(0.34	)	–		(0.34		)
INCOME ACCOUNT
Class 1 shares
2015	(c)		10.78		0.20		(0.13	)		0.07		–		–		–
2014			10.68		0.43		0.16			0.59		(0.49	)	–		(0.49		)
2013			11.22		0.46		(0.43	)		0.03		(0.57	)	–		(0.57		)
2012			10.71		0.53		0.48			1.01		(0.50	)	–		(0.50		)
2011			10.12		0.56		0.07			0.63		(0.04	)	–		(0.04		)
2010			9.97		0.60		0.25			0.85		(0.70	)	–		(0.70		)
Class 2 shares
2015	(c)		10.73		0.18		(0.12	)		0.06		–		–		–
2014			10.63		0.40		0.16			0.56		(0.46	)	–		(0.46		)
2013			11.17		0.43		(0.43	)		–		(0.54	)	–		(0.54		)
2012			10.66		0.50		0.47			0.97		(0.46	)	–		(0.46		)
2011			10.09		0.53		0.08			0.61		(0.04	)	–		(0.04		)
2010			9.95		0.58		0.23			0.81		(0.67	)	–		(0.67		)

See accompanying notes.

84

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	10.49	0.48	%(d)	$	302,172	0.51	%(e)	2.57	%(e)	30.4	%(e)
	10.44	5.08			314,509	0.51		2.56		19.1
	10.33	(1.03	)		379,351	0.51		2.58		45.3
	10.87	3.91			432,172	0.51		2.98		41.4
	10.90	6.23			453,864	0.51		3.42		83.8
	10.29	5.85			489,048	0.50		3.64		79.1	(f)
	10.49	0.38	(d)		1,804	0.76	(e)	2.32	(e)	30.4	(e)
	10.45	4.75			916	0.76		2.31		19.1
	10.34	(1.30	)		931	0.76		2.33		45.3
	10.88	3.70			1,143	0.76		2.73		41.4
	10.90	5.90			1,215	0.76		3.17		83.8
	10.32	5.65			1,457	0.75		3.45		79.1	(f)
	10.85	0.65	(d)		272,759	0.50	(e)	3.66	(e)	17.6	(e)
	10.78	5.55			275,597	0.51		3.95		16.6
	10.68	0.40			269,330	0.51		4.22		12.8
	11.22	9.57			292,756	0.51		4.78		14.7
	10.71	6.25			239,939	0.50		5.36		17.8
	10.12	8.65			225,114	0.50		5.81		17.0
	10.79	0.56	(d)		2,686	0.75	(e)	3.41	(e)	17.6	(e)
	10.73	5.26			3,036	0.76		3.71		16.6
	10.63	0.10			3,390	0.76		3.97		12.8
	11.17	9.28			3,875	0.76		4.55		14.7
	10.66	6.05			4,360	0.75		5.11		17.8
	10.09	8.26			5,135	0.75		5.58		17.0

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Portfolio turnover rate excludes approximately $53,358,000 from portfolio realignment from the acquisition of Government & High Quality Bond Account.

See accompanying notes.

85

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
LARGECAP GROWTH ACCOUNT
Class 1 shares
2015	(c)	$	24.60	$	0.02		$	1.45		$	1.47		$–		$–		$–
2014			22.26		0.03			2.44			2.47		(0.13	)	–		(0.13	)
2013			16.87		0.07			5.61			5.68		(0.29	)	–		(0.29	)
2012			14.48		0.12			2.32			2.44		(0.05	)	–		(0.05	)
2011			15.12		0.05			(0.69	)		(0.64	)	–		–		–
2010			12.78		0.01			2.34			2.35		(0.01	)	–		(0.01	)
Class 2 shares
2015	(c)		24.53		(0.01	)		1.44			1.43		–		–		–
2014			22.20		(0.03	)		2.44			2.41		(0.08	)	–		(0.08	)
2013			16.83		0.02			5.59			5.61		(0.24	)	–		(0.24	)
2012			14.43		0.08			2.32			2.40		–		–		–
2011			15.11		0.01			(0.69	)		(0.68	)	–		–		–
2010			12.80		(0.03	)		2.34			2.31		–		–		–
MIDCAP ACCOUNT
Class 1 shares
2015	(c)		60.79		0.09			2.98			3.07		–		–		–
2014			59.37		0.36			6.96			7.32		(0.32	)	(5.58	)	(5.90	)
2013			47.20		0.28			15.31			15.59		(0.82	)	(2.60	)	(3.42	)
2012			40.51		0.46			7.35			7.81		(0.40	)	(0.72	)	(1.12	)
2011			37.83		0.23			2.92			3.15		–		(0.47	)	(0.47	)
2010			31.25		0.46			7.00			7.46		(0.88	)	–		(0.88	)
Class 2 shares
2015	(c)		60.54		0.01			2.96			2.97		–		–		–
2014			59.16		0.21			6.93			7.14		(0.18	)	(5.58	)	(5.76	)
2013			47.06		0.15			15.25			15.40		(0.70	)	(2.60	)	(3.30	)
2012			40.39		0.35			7.33			7.68		(0.29	)	(0.72	)	(1.01	)
2011			37.82		0.13			2.91			3.04		–		(0.47	)	(0.47	)
2010			31.23		0.35			7.03			7.38		(0.79	)	–		(0.79	)

See accompanying notes.

86

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	26.07	5.98	%(d)	$	124,283	0.69	%(e)	0.17	%(e)	52.5	%(e)
	24.60	11.12			123,091	0.69		0.13		67.2
	22.26	33.91			100,140	0.69		0.37		70.1
	16.87	16.85			210,351	0.69		0.73		62.6
	14.48	(4.23	)		181,559	0.69		0.31		56.6
	15.12	18.38			207,114	0.69		0.04		61.1
	25.96	5.83	(d)		991	0.94	(e)	(0.08	) (e)	52.5	(e)
	24.53	10.85			661	0.94		(0.11	)	67.2
	22.20	33.64	(f)		712	0.94		0.10		70.1
	16.83	16.56	(f)		604	0.94		0.47		62.6
	14.43	(4.50	)		561	0.94		0.05		56.6
	15.11	18.05			691	0.94		(0.20	)	61.1
	63.86	5.05	(d)		674,277	0.52	(e)	0.30	(e)	25.3	(e)
	60.79	12.99			676,836	0.53		0.60		21.6
	59.37	33.93			649,893	0.53		0.52		12.4
	47.20	19.44			560,842	0.55		1.03		21.5
	40.51	8.29			531,255	0.55		0.57		28.9
	37.83	24.10			551,589	0.57		1.37		20.9
	63.51	4.91	(d)		16,211	0.77	(e)	0.05	(e)	25.3	(e)
	60.54	12.70			15,960	0.78		0.35		21.6
	59.16	33.58			15,105	0.78		0.27		12.4
	47.06	19.16			12,179	0.80		0.79		21.5
	40.39	8.00			11,226	0.80		0.32		28.9
	37.82	23.83			11,327	0.82		1.05		20.9

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Total return is calculated using the traded net asset value which may differ from the reported net asset value.

See accompanying notes.

87

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset	Net	Net Realized				Dividends		Distributions		Total
			Value,	Investment	and Unrealized		Total From		from Net		from		Dividends
			Beginning of	Income	Gain (Loss) on		Investment		Investment		Realized		and
			Period	(Loss)(a)	Investments		Operations		Income		Gains		Distributions
MONEY MARKET ACCOUNT
Class 1 shares
2015	(c)	$	1.00	$–	$–		$–		$–		$–		$–
2014			1.00	–	–		–		–		–		–
2013			1.00	–	–		–		–		–		–
2012			1.00	–	–		–		–		–		–
2011			1.00	–	–		–		–		–		–
2010			1.00	–	–		–		–		–		–
Class 2 shares
2015	(c)		1.00	–	–		–		–		–		–
2014			1.00	–	–		–		–		–		–
2013			1.00	–	–		–		–		–		–
2012			1.00	–	–		–		–		–		–
2011			1.00	–	–		–		–		–		–
2010			1.00	–	–		–		–		–		–
PRINCIPAL CAPITAL APPRECIATION ACCOUNT
Class 1 shares
2015	(c)		22.31	0.14	0.48		0.62		–		–		–
2014			24.45	0.24	2.52		2.76		(0.81	)	(4.09	)	(4.90	)
2013			23.75	0.30	6.63		6.93		(1.86	)	(4.37	)	(6.23	)
2012			21.36	0.35	2.58		2.93		(0.26	)	(0.28	)	(0.54	)
2011			21.47	0.24	(0.21	)	0.03		–		(0.14	)	(0.14	)
2010			19.23	0.35	2.59		2.94		(0.32	)	(0.38	)	(0.70	)
Class 2 shares
2015	(c)		22.11	0.11	0.48		0.59		–		–		–
2014			24.27	0.18	2.50		2.68		(0.75	)	(4.09	)	(4.84	)
2013			23.62	0.21	6.60		6.81		(1.79	)	(4.37	)	(6.16	)
2012			21.23	0.29	2.58		2.87		(0.20	)	(0.28	)	(0.48	)
2011			21.40	0.18	(0.21	)	(0.03	)	–		(0.14	)	(0.14	)
2010			19.17	0.31	2.57		2.88		(0.27	)	(0.38	)	(0.65	)

See accompanying notes.

88

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
										(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses		Ratio of Gross
	Value, End	Total			Period (in	to Average Net		Expenses to Average		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		Net Assets		to Average Net Assets		Turnover Rate
$	1.00	0.00	%(d)	$	269,377	0.18	%(e)	0.46%(e),(f)		0.00	%(e)	N/A
	1.00	0.00			278,903	0.16		0.46	(f)	0.00		N/A
	1.00	0.00			283,108	0.19		0.46	(f)	0.00		N/A
	1.00	0.00			303,903	0.27		0.46	(f)	0.00		N/A
	1.00	0.00			322,844	0.26		0.45	(f)	0.00		N/A
	1.00	0.00			314,976	0.32		0.45	(f)	0.00		N/A
	1.00	0.00	(d)		2,129	0.18	(e)	0.71 (e)	,(f)	0.00	(e)	N/A
	1.00	0.00			934	0.16		0.71	(f)	0.00		N/A
	1.00	0.00			959	0.20		0.71	(f)	0.00		N/A
	1.00	0.00			1,253	0.27		0.71	(f)	0.00		N/A
	1.00	0.00			1,777	0.26		0.70	(f)	0.00		N/A
	1.00	0.00			2,478	0.32		0.70	(f)	0.00		N/A
	22.93	2.78	(d)		167,604	0.64	(e)	–		1.21	(e)	18.1 (e)	,(g)
	22.31	12.45			33,190	0.66		–		1.02		8.6
	24.45	32.65			32,077	0.65		–		1.18		6.7
	23.75	13.83			145,393	0.64		–		1.51		6.2
	21.36	0.13			142,828	0.64		–		1.09		10.3
	21.47	15.40			151,592	0.64		–		1.78		13.7
	22.70	2.67	(d)		7,651	0.89	(e)	–		0.94	(e)	18.1 (e)	,(g)
	22.11	12.19			6,891	0.91		–		0.77		8.6
	24.27	32.27			6,362	0.90		–		0.85		6.7
	23.62	13.57			5,238	0.89		–		1.26		6.2
	21.23	(0.15	)		5,472	0.89		–		0.83		10.3
	21.40	15.11			6,822	0.89		–		1.57		13.7

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Excludes expense reimbursement from Manager and/or Distributor.
(g)	Portfolio turnover rate excludes approximately $1,237,000 of purchases from portfolio realignment from the acquisition of LargeCap Blend Account II.

See accompanying notes.

89

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
REAL ESTATE SECURITIES ACCOUNT
Class 1 shares
2015	(c)	$	22.33	$	0.12		($	1.34	)	($	1.22	)	$–		$–		$–
2014			17.08		0.29			5.28			5.57		(0.32	)	–		(0.32	)
2013			16.63		0.35			0.33			0.68		(0.23	)	–		(0.23	)
2012			14.39		0.21			2.26			2.47		(0.23	)	–		(0.23	)
2011			13.21		0.10			1.08			1.18		–		–		–
2010			10.83		0.26			2.49			2.75		(0.37	)	–		(0.37	)
Class 2 shares
2015	(c)		22.45		0.12			(1.37	)		(1.25	)	–		–		–
2014			17.18		0.27			5.27			5.54		(0.27	)	–		(0.27	)
2013			16.72		0.30			0.34			0.64		(0.18	)	–		(0.18	)
2012			14.46		0.17			2.26			2.43		(0.17	)	–		(0.17	)
2011			13.30		0.06			1.10			1.16		–		–		–
2010			10.91		0.23			2.50			2.73		(0.34	)	–		(0.34	)
SAM BALANCED PORTFOLIO
Class 1 shares
2015	(c)		16.51		0.01			0.27			0.28		–		–		–
2014			18.53		0.47			0.73			1.20		(0.52	)	(2.70	)	(3.22	)
2013			16.33		0.47			2.37			2.84		(0.43	)	(0.21	)	(0.64	)
2012			14.76		0.41			1.46			1.87		(0.11	)	(0.19	)	(0.30	)
2011			15.02		0.10			0.06			0.16		(0.42	)	–		(0.42	)
2010			13.73		0.42			1.38			1.80		(0.51	)	–		(0.51	)
Class 2 shares
2015	(c)		16.37		(0.01	)		0.27			0.26		–		–		–
2014			18.39		0.43			0.73			1.16		(0.48	)	(2.70	)	(3.18	)
2013			16.22		0.41			2.35			2.76		(0.38	)	(0.21	)	(0.59	)
2012			14.66		0.36			1.46			1.82		(0.07	)	(0.19	)	(0.26	)
2011			14.92		0.06			0.06			0.12		(0.38	)	–		(0.38	)
2010			13.64		0.36			1.40			1.76		(0.48	)	–		(0.48	)

See accompanying notes.

90

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses				Portfolio
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment		Turnover
	of Period	Return(b)			thousands)	Assets		Income to Average Net Assets		Rate
$	21.11	(5.46	)%(d)	$	151,309	0.89	%(e)	1.02	%(e)	22.9	%(e)
	22.33	32.82			166,701	0.89		1.48		15.7
	17.08	4.10			128,601	0.89		1.96		22.1
	16.63	17.17			133,069	0.90		1.33		44.1
	14.39	8.93			140,316	0.90		0.71		22.4
	13.21	25.70			140,922	0.89		2.16		48.0
	21.20	(5.57	) (d)		1,498	1.14	(e)	1.08	(e)	22.9	(e)
	22.45	32.44			492	1.14		1.37		15.7
	17.18	3.87			271	1.14		1.72		22.1
	16.72	16.86			257	1.15		1.08		44.1
	14.46	8.72			287	1.15		0.42		22.4
	13.30	25.29			442	1.14		1.92		48.0
	16.79	1.70	(d)		797,052	0.23 (e)	,(f)	0.12	(e)	14.8	(e)
	16.51	6.82			826,908	0.23	(f)	2.64		16.4
	18.53	17.68			913,823	0.23	(f)	2.68		46.7
	16.33	12.75			812,380	0.23	(f)	2.60		9.1
	14.76	0.99			781,873	0.23	(f)	0.68		14.2
	15.02	13.61			828,276	0.24	(f)	2.97		36.3
	16.63	1.59	(d)		99,972	0.48 (e)	,(f)	(0.13	) (e)	14.8	(e)
	16.37	6.59			99,852	0.48	(f)	2.44		16.4
	18.39	17.32			102,716	0.48	(f)	2.37		46.7
	16.22	12.47			95,208	0.48	(f)	2.32		9.1
	14.66	0.73			94,487	0.48	(f)	0.43		14.2
	14.92	13.34			107,086	0.49	(f)	2.59		36.3

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Portfolio invests.

See accompanying notes.

91

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized						Dividends		Distributions		Total
			Value,		Investment		and Unrealized				Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on				Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
SAM CONSERVATIVE BALANCED PORTFOLIO
Class 1 shares
2015	(c)	$	12.60	$	0.02		$	0.16		$	0.18		$–		$–		$–
2014			13.39		0.41			0.40			0.81		(0.42	)	(1.18	)	(1.60	)
2013			12.49		0.40			1.00			1.40		(0.37	)	(0.13	)	(0.50	)
2012			11.47		0.37			0.90			1.27		(0.10	)	(0.15	)	(0.25	)
2011			11.68		0.10			0.17			0.27		(0.37	)	(0.11	)	(0.48	)
2010			10.94		0.40			0.84			1.24		(0.50	)	–		(0.50	)
Class 2 shares
2015	(c)		12.48		–			0.16			0.16		–		–		–
2014			13.28		0.38			0.38			0.76		(0.38	)	(1.18	)	(1.56	)
2013			12.39		0.36			1.00			1.36		(0.34	)	(0.13	)	(0.47	)
2012			11.38		0.33			0.90			1.23		(0.07	)	(0.15	)	(0.22	)
2011			11.60		0.07			0.17			0.24		(0.35	)	(0.11	)	(0.46	)
2010			10.85		0.35			0.88			1.23		(0.48	)	–		(0.48	)
SAM CONSERVATIVE GROWTH PORTFOLIO
Class 1 shares
2015	(c)		19.02		–			0.38			0.38		–		–		–
2014			20.60		0.48			0.97			1.45		(0.39	)	(2.64	)	(3.03	)
2013			17.04		0.40			3.50			3.90		(0.34	)	–		(0.34	)
2012			14.99		0.33			1.79			2.12		(0.07	)	–		(0.07	)
2011			15.36		0.07			(0.13	)		(0.06	)	(0.31	)	–		(0.31	)
2010			13.80		0.31			1.72			2.03		(0.47	)	–		(0.47	)
Class 2 shares
2015	(c)		18.82		(0.03	)		0.39			0.36		–		–		–
2014			20.42		0.42			0.97			1.39		(0.35	)	(2.64	)	(2.99	)
2013			16.89		0.34			3.49			3.83		(0.30	)	–		(0.30	)
2012			14.87		0.28			1.77			2.05		(0.03	)	–		(0.03	)
2011			15.23		0.03			(0.11	)		(0.08	)	(0.28	)	–		(0.28	)
2010			13.69		0.27			1.71			1.98		(0.44	)	–		(0.44	)

See accompanying notes.

92

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	12.78	1.43	%(d)	$	203,342	0.23%(e),(f)		0.29	%(e)	14.6	%(e)
	12.60	6.22			206,621	0.23	(f)	3.10		21.2
	13.39	11.53			212,247	0.23	(f)	3.10		35.6
	12.49	11.19			190,310	0.24	(f)	3.07		15.7
	11.47	2.29			177,476	0.24	(f)	0.86		20.8
	11.68	11.84			178,249	0.24	(f)	3.56		34.4
	12.64	1.28	(d)		18,218	0.48 (e)	,(f)	0.04	(e)	14.6	(e)
	12.48	5.92			16,731	0.48	(f)	2.87		21.2
	13.28	11.25			16,140	0.48	(f)	2.77		35.6
	12.39	10.91			15,911	0.49	(f)	2.73		15.7
	11.38	1.97			15,465	0.49	(f)	0.60		20.8
	11.60	11.73			15,761	0.49	(f)	3.18		34.4
	19.40	2.00	(d)		201,691	0.23 (e)	,(f)	(0.05	) (e)	25.1	(e)
	19.02	7.43			198,465	0.23	(f)	2.40		19.4
	20.60	23.07			179,850	0.23	(f)	2.10		48.5
	17.04	14.18			143,547	0.24	(f)	2.00		12.5
	14.99	(0.45	)		132,387	0.24	(f)	0.45		24.2
	15.36	15.22			140,207	0.24	(f)	2.21		42.2
	19.18	1.91	(d)		106,371	0.48 (e)	,(f)	(0.30	) (e)	25.1	(e)
	18.82	7.14			102,757	0.48	(f)	2.11		19.4
	20.42	22.82			99,013	0.48	(f)	1.82		48.5
	16.89	13.81			84,306	0.49	(f)	1.76		12.5
	14.87	(0.63	)		78,247	0.49	(f)	0.20		24.2
	15.23	14.92			84,941	0.49	(f)	1.92		42.2

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Portfolio invests.

See accompanying notes.

93

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net			Net Realized					Dividends		Distributions		Total
			Value,		Investment			and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income			Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)			Investments			Operations		Income		Gains		Distributions
SAM FLEXIBLE INCOME PORTFOLIO
Class 1 shares
2015	(c)	$	13.22	$	0.05		$	0.07		$	0.12		$–		$–		$–
2014			13.72		0.49			0.33			0.82		(0.52	)	(0.80	)	(1.32	)
2013			13.38		0.49			0.51			1.00		(0.48	)	(0.18	)	(0.66	)
2012			12.42		0.48			0.83			1.31		(0.15	)	(0.20	)	(0.35	)
2011			12.50		0.15			0.28			0.43		(0.49	)	(0.02	)	(0.51	)
2010			11.95		0.51			0.69			1.20		(0.65	)	–		(0.65	)
Class 2 shares
2015	(c)		13.12		0.03			0.07			0.10		–		–		–
2014			13.62		0.45			0.33			0.78		(0.48	)	(0.80	)	(1.28	)
2013			13.29		0.46			0.50			0.96		(0.45	)	(0.18	)	(0.63	)
2012			12.34		0.44			0.83			1.27		(0.12	)	(0.20	)	(0.32	)
2011			12.42		0.12			0.28			0.40		(0.46	)	(0.02	)	(0.48	)
2010			11.87		0.45			0.72			1.17		(0.62	)	–		(0.62	)
SAM STRATEGIC GROWTH PORTFOLIO
Class 1 shares
2015	(c)		21.00		(0.01	)		0.45			0.44		–		–		–
2014			23.55		0.56			1.33			1.89		(0.38	)	(4.06	)	(4.44	)
2013			18.74		0.40			4.70			5.10		(0.29	)	–		(0.29	)
2012			16.26		0.29			2.23			2.52		(0.04	)	–		(0.04	)
2011			16.82		0.04			(0.34	)		(0.30	)	(0.26	)	–		(0.26	)
2010			14.83		0.28			2.09			2.37		(0.38	)	–		(0.38	)
Class 2 shares
2015	(c)		20.80		(0.03	)		0.44			0.41		–		–		–
2014			23.38		0.49			1.32			1.81		(0.33	)	(4.06	)	(4.39	)
2013			18.61		0.33			4.68			5.01		(0.24	)	–		(0.24	)
2012			16.15		0.24			2.22			2.46		–		–		–
2011			16.71		–			(0.34	)		(0.34	)	(0.22	)	–		(0.22	)
2010			14.73		0.23			2.10			2.33		(0.35	)	–		(0.35	)

See accompanying notes.

94

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	13.34	0.91	%(d)	$	212,836	0.23%(e),(f)		0.69	%(e)	15.0	%(e)
	13.22	6.03			215,309	0.23	(f)	3.55		18.8
	13.72	7.75			214,572	0.23	(f)	3.57		29.7
	13.38	10.64			215,628	0.24	(f)	3.69		11.7
	12.42	3.39			187,458	0.24	(f)	1.22		20.6
	12.50	10.51			183,764	0.24	(f)	4.22		31.5
	13.22	0.76	(d)		21,430	0.48 (e)	,(f)	0.44	(e)	15.0	(e)
	13.12	5.80			19,836	0.48	(f)	3.27		18.8
	13.62	7.46			19,464	0.48	(f)	3.36		29.7
	13.29	10.34			19,667	0.49	(f)	3.41		11.7
	12.34	3.13			18,382	0.49	(f)	0.96		20.6
	12.42	10.26			20,147	0.49	(f)	3.70		31.5
	21.44	2.10	(d)		145,079	0.23 (e)	,(f)	(0.06	) (e)	40.4	(e)
	21.00	8.68			138,863	0.23	(f)	2.50		20.4
	23.55	27.40			121,049	0.23	(f)	1.89		62.5
	18.74	15.52			90,348	0.24	(f)	1.61		13.9
	16.26	(1.90	)		83,738	0.24	(f)	0.25		23.3
	16.82	16.40			81,821	0.24	(f)	1.82		51.7
	21.21	1.97	(d)		99,597	0.48 (e)	,(f)	(0.31	) (e)	40.4	(e)
	20.80	8.35			96,446	0.48	(f)	2.21		20.4
	23.38	27.09			87,689	0.48	(f)	1.57		62.5
	18.61	15.23			71,997	0.49	(f)	1.36		13.9
	16.15	(2.12	)		64,907	0.49	(f)	(0.01	)	23.3
	16.71	16.18			69,749	0.49	(f)	1.53		51.7

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Does not include expenses of the investment companies in which the Portfolio invests.

See accompanying notes.

95

FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.

(unaudited)

Selected data for a share of Capital Stock outstanding throughout each year ended December 31 (except as noted):

			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends
			Beginning of		Income		Gain (Loss) on			Investment		Investment		Realized		and
			Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions
SHORT-TERM INCOME ACCOUNT
Class 1 shares
2015	(c)	$	2.59	$	0.02		$–		$	0.02		$–		$–		$–
2014			2.59		0.05		(0.01	)		0.04		(0.04	)	–		(0.04	)
2013			2.61		0.04		(0.01	)		0.03		(0.05	)	–		(0.05	)
2012			2.54		0.05		0.08			0.13		(0.06	)	–		(0.06	)
2011			2.51		0.06		(0.03	)		0.03		–		–		–
2010			2.46		0.06		0.04			0.10		(0.05	)	–		(0.05	)
Class 2 shares
2015	(c)		2.58		0.02		–			0.02		–		–		–
2014			2.59		0.04		(0.01	)		0.03		(0.04	)	–		(0.04	)
2013			2.60		0.04		(0.01	)		0.03		(0.04	)	–		(0.04	)
2012			2.53		0.04		0.08			0.12		(0.05	)	–		(0.05	)
2011			2.51		0.05		(0.03	)		0.02		–		–		–
2010			2.45		0.06		0.05			0.11		(0.05	)	–		(0.05	)
SMALLCAP BLEND ACCOUNT
Class 1 shares
2015	(c)		13.99		0.02		1.17			1.19		–		–		–
2014			13.79		0.02		0.64			0.66		(0.05	)	(0.41	)	(0.46	)
2013			9.36		0.04		4.43			4.47		(0.04	)	–		(0.04	)
2012			8.16		0.07		1.13			1.20		–		–		–
2011			8.31		(0.01	)	(0.11	)		(0.12	)	(0.03	)	–		(0.03	)
2010			6.72		0.03		1.59			1.62		(0.03	)	–		(0.03	)
Class 2 shares
2015	(h)		14.49		0.01		0.67			0.68		–		–		–

See accompanying notes.

96

						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
								(unaudited)
	Net Asset				Net Assets, End of	Ratio of Expenses
	Value, End	Total			Period (in	to Average Net		Ratio of Net Investment Income		Portfolio
	of Period	Return(b)			thousands)	Assets		to Average Net Assets		Turnover Rate
$	2.61	0.77	%(d)	$	253,265	0.48%(e),(f)		1.52	%(e)	67.7	%(e)
	2.59	1.73			267,674	0.49	(f)	1.74		54.3
	2.59	1.14			256,561	0.48	(f)	1.65		54.7
	2.61	5.00			262,427	0.49	(f)	1.95		59.1
	2.54	1.37			228,351	0.49	(f)	2.35		55.1
	2.51	4.20			224,344	0.50	(f)	2.49		85.4	(g)
	2.60	0.78	(d)		1,605	0.73 (e)	,(f)	1.20	(e)	67.7	(e)
	2.58	1.02			913	0.74	(f)	1.49		54.3
	2.59	1.25			838	0.73	(f)	1.40		54.7
	2.60	4.67			1,269	0.74	(f)	1.72		59.1
	2.53	0.95			1,516	0.74	(f)	2.11		55.1
	2.51	4.37			1,901	0.75	(f)	2.45		85.4	(g)
	15.18	8.51	(d)		232,906	0.83	(e)	0.30	(e)	84.2	(e)
	13.99	4.89			64,682	0.87		0.16		67.0
	13.79	47.81			64,785	0.87		0.38		78.1
	9.36	14.71			47,469	0.89		0.76		94.5
	8.16	(1.47	)		47,155	0.88		(0.09	)	69.1
	8.31	24.26			57,287	0.88		0.38		69.0
	15.17	4.69	(d)		4,783	1.08	(e)	0.23	(e)	84.2	(e)

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)	Six months ended June 30, 2015
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Reflects Manager's contractual expense limit.
(g)	Portfolio turnover rate excludes approximately $3,528,000 from portfolio realignment from the acquisition of Short-Term Bond Account.
(h)	Period from February 17, 2015 date operations commenced, through June 30, 2015

See accompanying notes.

97

SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2015 (unaudited)

As a shareholder of Principal Variable Contracts Funds, Inc. you 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 Variable Contracts Funds, Inc. and to compare these costs with the ongoing costs of investing in other mutual funds. As a shareholder of SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, or SAM Strategic Growth Portfolio, your fund will indirectly bear its pro rata share of the expenses incurred by the investment companies in which the fund invests. These expenses are not included in the fund’s annualized expense ratio used to calculate the expenses paid in this example. If they were, the expenses paid would be higher. Expenses shown below and on the following pages do not account for fees, expenses and charges of any variable insurance contract or retirement plan. If these fees had been reflected, expenses would have been higher.

The example is based on an investment of $1,000 invested at the beginning of the year and held for the entire year (January 1, 2015 to June 30, 2015).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each account’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the account’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 Variable Contracts 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. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015	Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)	Expense Ratio
Diversified International Account Class 1
Actual	$	1,000.00	$	1,059.66	$	4.44	0.87	%
Hypothetical		1,000.00		1,020.48		4.36	0.87
Diversified International Account Class 2
Actual		1,000.00		1,057.79		5.71	1.12
Hypothetical		1,000.00		1,019.24		5.61	1.12
Equity Income Account Class 1
Actual		1,000.00		996.97		2.43	0.49
Hypothetical		1,000.00		1,022.36		2.46	0.49
Equity Income Account Class 2
Actual		1,000.00		996.08		3.66	0.74
Hypothetical		1,000.00		1,021.12		3.71	0.74
Government & High Quality Bond Account Class 1
Actual		1,000.00		1,004.79		2.54	0.51
Hypothetical		1,000.00		1,022.27		2.56	0.51
Government & High Quality Bond Account Class 2
Actual		1,000.00		1,003.83		3.78	0.76
Hypothetical		1,000.00		1,021.03		3.81	0.76
Income Account Class 1
Actual		1,000.00		1,006.49		2.49	0.50
Hypothetical		1,000.00		1,022.32		2.51	0.50
Income Account Class 2
Actual		1,000.00		1,005.59		3.73	0.75
Hypothetical		1,000.00		1,021.08		3.76	0.75

98

		SHAREHOLDER EXPENSE EXAMPLE (Continued)
		PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
		June 30, 2015 (unaudited)
						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015	Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)	Expense Ratio
LargeCap Growth Account Class 1
Actual	$	1,000.00	$	1,059.76	$	3.52	0.69	%
Hypothetical		1,000.00		1,021.37		3.46	0.69
LargeCap Growth Account Class 2
Actual		1,000.00		1,058.30		4.80	0.94
Hypothetical		1,000.00		1,020.13		4.71	0.94
MidCap Account Class 1
Actual		1,000.00		1,050.50		2.64	0.52
Hypothetical		1,000.00		1,022.22		2.61	0.52
MidCap Account Class 2
Actual		1,000.00		1,049.06		3.91	0.77
Hypothetical		1,000.00		1,020.98		3.86	0.77
Money Market Account Class 1
Actual		1,000.00		1,000.00		0.89	0.18
Hypothetical		1,000.00		1,023.90		0.90	0.18
Money Market Account Class 2
Actual		1,000.00		1,000.00		0.89	0.18
Hypothetical		1,000.00		1,023.90		0.90	0.18
Principal Capital Appreciation Account Class 1
Actual		1,000.00		1,027.79		3.22	0.64
Hypothetical		1,000.00		1,021.62		3.21	0.64
Principal Capital Appreciation Account Class 2
Actual		1,000.00		1,026.68		4.47	0.89
Hypothetical		1,000.00		1,020.38		4.46	0.89
Real Estate Securities Account Class 1
Actual		1,000.00		945.36		4.29	0.89
Hypothetical		1,000.00		1,020.38		4.46	0.89
Real Estate Securities Account Class 2
Actual		1,000.00		944.32		5.50	1.14
Hypothetical		1,000.00		1,019.14		5.71	1.14
SAM Balanced Portfolio Class 1
Actual		1,000.00		1,016.96		1.15	0.23
Hypothetical		1,000.00		1,023.65		1.15	0.23
SAM Balanced Portfolio Class 2
Actual		1,000.00		1,015.88		2.40	0.48
Hypothetical		1,000.00		1,022.41		2.41	0.48
SAM Conservative Balanced Portfolio Class 1
Actual		1,000.00		1,014.29		1.15	0.23
Hypothetical		1,000.00		1,023.65		1.15	0.23
SAM Conservative Balanced Portfolio Class 2
Actual		1,000.00		1,012.82		2.40	0.48
Hypothetical		1,000.00		1,022.41		2.41	0.48
SAM Conservative Growth Portfolio Class 1
Actual		1,000.00		1,019.98		1.15	0.23
Hypothetical		1,000.00		1,023.65		1.15	0.23
SAM Conservative Growth Portfolio Class 2
Actual		1,000.00		1,019.13		2.40	0.48
Hypothetical		1,000.00		1,022.41		2.41	0.48
SAM Flexible Income Portfolio Class 1
Actual		1,000.00		1,009.08		1.15	0.23
Hypothetical		1,000.00		1,023.65		1.15	0.23
SAM Flexible Income Portfolio Class 2
Actual		1,000.00		1,007.62		2.39	0.48
Hypothetical		1,000.00		1,022.41		2.41	0.48

99

		SHAREHOLDER EXPENSE EXAMPLE (Continued)
		PRINCIPAL VARIABLE CONTRACTS FUNDS, INC.
		June 30, 2015 (unaudited)
						Expenses Paid
		Beginning		Ending		During Period
		Account Value		Account Value		January 1, 2015		Annualized
		January 1, 2015		June 30, 2015		to June 30, 2015(a)		Expense Ratio
SAM Strategic Growth Portfolio Class 1
Actual	$	1,000.00	$	1,020.95	$	1.15		0.23	%
Hypothetical		1,000.00		1,023.65		1.15		0.23
SAM Strategic Growth Portfolio Class 2
Actual		1,000.00		1,019.71		2.40		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
Short-Term Income Account Class 1
Actual		1,000.00		1,007.72		2.39		0.48
Hypothetical		1,000.00		1,022.41		2.41		0.48
Short-Term Income Account Class 2
Actual		1,000.00		1,007.75		3.63		0.73
Hypothetical		1,000.00		1,021.17		3.66		0.73
SmallCap Blend Account Class 1
Actual		1,000.00		1,085.06		4.29		0.83
Hypothetical		1,000.00		1,020.68		4.16		0.83
SmallCap Blend Account Class 2
Actual		1,000.00		1,046.93		4.03	(b)	1.08
Hypothetical		1,000.00		1,019.44		5.41		1.08

^(a) Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

^(b) Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period (February 17, 2015 to June 30, 2015), multiplied by 133/365 (to reflect the period since inception).

100

FUND DIRECTORS AND OFFICERS

Under Maryland law, a Board of Directors oversees the Fund. The Directors have financial or other relevant experience and meet several times during the year to review contracts, Fund activities and the quality of services provided to the Fund. Each director also has the same position with Principal Funds, Inc. which is also sponsored by Principal Life Insurance Company. Each director holds office for an indefinite term or until reaching age 72. Directors considered to be “interested persons” as defined in the Investment Company Act of 1940, as amended, as shown below are considered to be interested because of an affiliation with the Manager and Principal Life Insurance Company.

The following directors are considered not to be “interested persons” as defined in the 1940 Act

		Number of	Other
Name,		Portfolios in Fund	Directorships
Position Held with the Fund,	Principal Occupation(s)	Complex Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	115	Durango Herald, Inc;
Director since 2004			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948
Leroy T. Barnes, Jr.	Retired.	115	McClatchy
Director since March 2012			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.; Frontier
1951			Communications, Inc.
Craig Damos	President, The Damos	115	Hardin Construction
Director since 2008	Company. Formerly, CEO, The		Company
Member, Audit Committee	Weitz Company
Member, 15(c) Committee
1954
Mark A. Grimmett	Executive Vice President and	115	None
Director since 2004	CFO, Merle Norman Cosmetics,
Member, Nominating and Governance	Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960
Fritz S. Hirsch	CEO, MAM USA	115	Focus Products Group
Director since 2005	Formerly, President, Sassy, Inc.
Member, Operations Committee
Member, 15(c) Committee
1951
Tao Huang	Formerly, Chief Operating	115	Armstrong World
Director since March 2012	Officer, Morningstar, Inc.		Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962
William C. Kimball	Partner, Kimball – Porter	115	Casey’s General Stores,
Director since 1999	Investments L.L.C.		Inc.
Member, Nominating and Governance
Committee
1947
Karen (“Karrie”) McMillan	Managing Director, Patomak	115	None
Director since 2014	Global Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute
Daniel Pavelich	Retired.	115	None
Director since 2007
Member, Audit Committee
1944

101

The following directors are considered to be “interested persons” as defined in the 1940 Act, as amended, because of an affiliation with the Manager and Principal Life.

		Number of
		Portfolios in Fund	Other
Name,		Complex	Directorships
Position Held with the Fund,	Principal Occupation(s)	Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Michael J. Beer	Executive Vice President, Principal	115	None
Director since 2012	Funds Distributor, Inc. (“PFD”)
President, Chief Executive Officer	Vice President/Mutual Funds and
Member, Executive Committee	Broker Dealer, Principal Life
1961	Insurance Company (“PLIC”)
	Director, Principal Management
	Corporation, (the “Manager”)
	President & Chief Executive Officer,
	the Manager since 2015
	Executive Vice President/ Chief
	Operating Officer, the Manager
	(2008-2015)
	Director, Princor
	President, Princor (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) since 2011
	President, PSS since 2011
Nora M. Everett	Director, Edge Asset Management,	115	None
Director since 2008	Inc. (“Edge”) (2008-2011)
Chairman	Director, Finisterre Capital LLP since
Member, Executive Committee	2011
1959	Director, Origin Asset Management
	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) since 2010
	Chairman, PFD since 2011
	Senior Vice President/Retirement and
	Investor Services, PLIC (2008-2015)
	President/Retirement and Investor
	Services, PLIC since 2015
	Chairman, the Manager since 2011
	President, the Manager (2008-2015)
	Chairman, Princor since 2011
	Chief Executive Officer, Princor
	(2009-2015)
	Chairman, PSS since 2011

Correspondence intended for each Director who is other than an Interested Director may be sent to 711 High Street, Des Moines, IA

50392.

102

The following table presents officers of the Funds.

Name,
Position Held with the Fund,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Randy L. Bergstrom	Counsel, Principal Global Investors, LLC (“PGI”)
Assistant Tax Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392
1955
Tracy Bollin	Chief Financial Officer, PFA since 2010
Chief Financial Officer	Assistant Controller, PFD (2007-2010)
711 High Street, Des Moines, IA 50392	Chief Financial Officer, PFD since 2010
1970	Chief Financial Officer, the Manager since 2010
	Financial Controller, the Manager (2008-2010)
	Assistant Controller, Princor (2009-2010)
	Chief Financial Officer, Princor since 2010
	Financial Controller, Princor (2008-2009)
	Assistant Controller, PSS (2007-2010)
	Chief Financial Officer, PSS since 2010
David J. Brown	Senior Vice President, PFD
Chief Compliance Officer	Vice President/Compliance, PLIC
711 High Street, Des Moines, IA 50392	Senior Vice President, the Manager
1960	Senior Vice President, Princor
	Senior Vice President, PSS
Teresa M. Button	Vice President/Treasurer, Edge since 2011
Treasurer	Vice President/Treasurer, PFA since 2011
711 High Street, Des Moines, IA 50392	Vice President/Treasurer, PFD since 2011
1963	Vice President/Treasurer, PGI since 2011
	Vice President/Treasurer, PLIC since 2011
	Vice President/Treasurer, the Manager since 2011
	Vice President/Treasurer, Post since 2011
	Vice President/Treasurer, Principal-REI since 2011
	Vice President/Treasurer, Princor since 2011
	Vice President/Treasurer, PSS since 2011
Treasurer, Spectrum since 2011
Ernie H. Gillum	Vice President/Chief Compliance Officer, the Manager
Vice President, Assistant Secretary	Vice President/Chief Compliance Officer, PSS
711 High Street, Des Moines, IA 50392
1955
Carolyn F. Kolks	Counsel, PGI
Assistant Tax Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392
1962
Jennifer A. Mills	Counsel, PFD (2009-2013)
Assistant Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392	Counsel, the Manager (2009-2013, 2014 - present)
1973	Counsel, Princor (2009-2013)
	Counsel, PSS (2009-2013)
Layne A. Rasmussen	Vice President/Controller – Principal Funds, the Manager
Vice President and Controller
711 High Street, Des Moines, IA 50392
1958
Greg Reymann	Assistant General Counsel, PLIC since 2014
Assistant Counsel	VP, Chief Compliance Officer and Chief Risk Officer, Transamerica Asset
711 High Street, Des Moines, IA 50392	Management, Inc. (“TAM”) (2010-2012)
1958	Assistant General Counsel, Transamerica Asset Management Group (2013-2014)
	Vice President/CFTC Principal, TAM (2013-2014)

103

Name, Position Held with the Fund,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Britney L. Schnathorst	Counsel, PLIC since 2013
Assistant Counsel	Prior thereto, Attorney in Private Practice
711 High Street, Des Moines, IA 50392
1981
Adam U. Shaikh	Counsel, PFD (2006-2013)
Assistant Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392	Counsel, the Manager (2007-2013, 2014 - present)
1972	Counsel, Princor (2007-2013)
	Counsel, PSS (2007-2013)
Dan Westholm	Assistant Vice President/Treasury, PFA since 2013
Assistant Treasurer	Director – Treasury, PFA (2011-2013)
711 High Street, Des Moines, IA 50392	Assistant Vice President/Treasury, PFD since 2013
1966	Director – Treasury, PFD (2011-2013)
	Assistant Vice President/Treasury, PLIC
	Assistant Vice President/Treasury, the Manager
	Assistant Vice President/Treasury, Princor since 2013
	Director – Treasury, Princor (2008-2009, 2011-2013)
	Assistant Vice President/Treasury, PSS
Beth Wilson	Vice President, the Manager (2007-2013)
Vice President and Secretary	Vice President, Princor (2007-2009)
711 High Street, Des Moines, IA 50392
1956
Clint Woods	Associate General Counsel, AEGON USA Investment Management, LLC (2003-
Counsel	2012)
711 High Street, Des Moines, IA 50392	Assistant General Counsel, Assistant Corporate Secretary, Governance Officer,
1961	PLIC since 2013

The 15(c) Committee assists 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 Audit Committee selects the independent auditors for the Fund and oversees the activities of the independent auditors as well as the internal auditors. The committee also receives reports about accounting and financial matters affecting the Fund.

The Executive Committee is selected by the Board. It may exercise all the powers of the Board, with certain exceptions, when the Board is not in session. The Committee must report its actions to the Board.

The Nominating and Governance Committee selects and nominates all candidates who are not “interested persons” of the Fund for election to the Board. The committee also oversees the structure and efficiency of the Board of Directors and the committees the Board establishes.

The Operations Committee oversees the provision of administrative and distribution services to the Funds, communications with the Funds’ shareholders, and provides review and oversight of the Funds’ operations.

Additional information about the Fund is available in the Prospectuses dated May 1, 2015, and the Statement of Additional Information dated May 1, 2015. These documents may be obtained free of charge by writing or telephoning Principal Funds Distributor, Inc., P.O. Box 10423, Des Moines, IA 50306. Telephone 1-800-222-5852.

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 Principal Funds Distributor, Inc., at 1-800-222-5852, or at www.sec.gov.

SCHEDULES OF INVESTMENTS

The Fund files complete schedules of investments with the Securities and Exchange Commission as of March 31 and September 30 of each year on Form N-Q. The Fund’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330.

104

Special Meeting of Shareholders

Principal Variable Contracts Funds, Inc. – LargeCap Blend Account II

Held April 10, 2015

1.      Approval of a Plan of Reorganization providing for the reorganization of the LargeCap Blend Account II into the Principal Capital Appreciation Account:

In Favor	Opposed	Abstain
12,171,790.5186	180,115.8597	579,436.1247

====================================

Special Meeting of Shareholders

Principal Variable Contracts Funds, Inc. – SmallCap Value Account I

Held April 10, 2015

1.      Approval of a Plan of Reorganization providing for the reorganization of the SmallCap Value Account I into the SmallCap Blend Account:

In Favor	Opposed	Abstain
4,670,548.3531	142,682.4756	257,456.5513

====================================

Special Meeting of Shareholders

Principal Variable Contracts Funds, Inc. – SmallCap Growth Account II

Held April 10, 2015

1.      Approval of a Plan of Reorganization providing for the reorganization of the SmallCap Growth Account II into the SmallCap Blend Account:

In Favor	Opposed	Abstain
2,933,930.0086	42,751.8905	130,659.5759
	====================================

105

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This report must be preceded or accompanied by a current prospectus for the Principal Variable Contracts Funds, Inc.

WE’LL GIVE YOU AN EDGE^®

principalfunds.com

Principal Funds are distributed by Principal Funds Distributor, Inc.

MM1291B-07 | © 2015 Principal Financial Services, Inc. | 08/2015 | t15071302sl

ITEM 2 – CODE OF ETHICS

Not applicable to semi-annual reports.

ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable to semi-annual reports.

ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable to semi-annual reports.

ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6 – SCHEDULE OF INVESTMENTS

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

ITEM 7 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 11 – CONTROLS AND PROCEDURES

a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).

(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12 – EXHIBITS

(a)(1) Code of Ethics - Not applicable to semi-annual reports.

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.CERT.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Principal Variable Contracts Funds, Inc.

By /s/ Michael J. Beer

Michael J. Beer, President and CEO

Date 8/13/2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /s/ Michael J. Beer

Michael J. Beer, President and CEO

Date 8/13/2015

By /s/ Tracy W. Bollin

Tracy W. Bollin, Chief Financial Officer

Date 8/13/2015