N-CSRS 1 primary-document.htm
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)
 
801 Grand Avenue, Des Moines, IA 50309
(Address of principal executive offices)                                                         (Zip code)
 
Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309
(Name and address of agent for service)
                                                                                               
Registrant’s telephone number, including area code:
515-248-0156
 
Date of fiscal year end:
December 31, 2020
 
Date of reporting period:
June 30, 2020
 

ITEM 1 – REPORT TO STOCKHOLDERS
 
Principal
Variable
Contracts
Funds,
Inc.
Semiannual
Report
June
30,
2020
Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
you
may
not
be
receiving
paper
copies
of
the
Fund’s
shareholder
reports
from
the
insurance
company
that
offers
your
contract
unless
you
specifically
request
paper
copies
from
the
insurance
company
or
from
your
financial
intermediary.
Instead,
the
shareholder
reports
will
be
made
available
on
a
website,
and
the
insurance
company
will
notify
you
by
mail
each
time
a
report
is
posted
and
provide
you
with
a
website
link
to
access
the
report.
Instructions
for
requesting
paper
copies
will
be
provided
by
your
insurance
company.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
You
may
elect
to
receive
shareholder
reports
and
other
communications
from
the
insurance
company
electronically
by
following
the
instructions
provided
by
the
insurance
company.
You
may
elect
to
receive
all
future
reports
in
paper
free
of
charge
from
the
insurance
company.
You
can
inform
the
insurance
company
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports
by
calling
1-800-247-
9988
if
you
have
a
life
insurance
policy
or
1-800-852-4450
if
you
have
an
annuity.
Your
election
to
receive
reports
in
paper
will
apply
to
all
portfolio
companies
available
under
your
contract.
Sign
up
for
eDelivery!
Safe,
secure
and
ready
when
you
are,
sign
up
for
eDelivery
today.
Two
ways
to
sign
up
(some
restrictions
may
apply):
Visit
Principal.com
>
Log
in,
select
“My
Profile”,
then
select
“Manage
Delivery
Preferences”
Telephone:
>
Call
us
at
1-800-247-9988
if
you
have
a
life
insurance
policy
or
1-800-852-4450
if
you
have
an
annuity.
Table
of
Contents
Not
FDIC
or
NCUA
insured
May
lose
value
•
Not
a
deposit
•
No
bank
or
credit
union
guarantee
Not
insured
by
any
Federal
government
agency
Financial
Statements
1
Notes
to
Financial
Statements
40
Schedules
of
Investments
65
Financial
Highlights
(Includes
performance
information)
188
Shareholder
Expense
Example
208
Supplemental
Information
212
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
1
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Bond
Market
Index
Account
Core
Plus
Bond
Account
Diversified
Balanced
Account
Investment
in
securities--at
cost
..........................................................
$
2,310,854‌
$
269,645‌
$
–‌
Investment
in
affiliated
securities--at
cost
................................................
$
185,618‌
$
7,169‌
$
713,124‌
Assets
Investment
in
securities--at
value 
..........................................................
$
2,485,581‌
(a)
$
281,305‌
(a)
$
–‌
Investment
in
affiliated
securities--at
value
.................................................
185,618‌
7,169‌
967,067‌
Cash
.........................................................................................
264‌
1‌
–‌
Deposits
with
counterparty
..................................................................
318‌
8‌
–‌
Receivables:
Dividends
and
interest
.................................................................
12,428‌
1,666‌
–‌
Fund
shares
sold
.......................................................................
372‌
2,015‌
4‌
Investment
securities
sold
.............................................................
17,556‌
1,445‌
2,380‌
Variation
margin
on
futures
...........................................................
–‌
2‌
–‌
Total
Assets  
2,702,137‌
293,611‌
969,451‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
282‌
97‌
40‌
Accrued
distribution
fees
....................................................................
–‌
–‌
191‌
Accrued
directors'
expenses
.................................................................
11‌
1‌
6‌
Accrued
other
expenses
.....................................................................
19‌
3‌
7‌
Deposits
from
counterparty
.................................................................
264‌
–‌
–‌
Payables:
Fund
shares
redeemed
.................................................................
6,634‌
18‌
2,384‌
Investment
securities
purchased
......................................................
161,947‌
31,699‌
–‌
Variation
margin
on
futures
...........................................................
–‌
11‌
–‌
Variation
margin
on
swaps
............................................................
–‌
10‌
–‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
3,521‌
1,123‌
–‌
Total
Liabilities  
172,678‌
32,962‌
2,628‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
2,529,459‌
$
260,649‌
$
966,823‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
2,258,565‌
$
234,638‌
$
640,282‌
Total
distributable
earnings
(accumulated
loss)
.............................................
270,894‌
26,011‌
326,541‌
Total
Net
Assets 
$
2,529,459‌
$
260,649‌
$
966,823‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000‌
400,000‌
450,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
2,529,459‌
$
260,649‌
$
38,765‌
Shares
issued
and
outstanding
........................................................
222,531‌
21,379‌
2,327‌
Net
Asset
Value
per
share
.............................................................
$
11.37‌
$
12.19‌
$
16.66‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
N/A‌
$
928,058‌
Shares
issued
and
outstanding
........................................................
55,685‌
Net
Asset
Value
per
share
.............................................................
$
16.67‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
2
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Account
Investment
in
affiliated
securities--at
cost
................................................
$
147,988‌
$
151,374‌
$
2,625,984‌
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
170,151‌
$
157,539‌
$
3,549,107‌
Deposits
with
counterparty
..................................................................
–‌
216‌
–‌
Receivables:
Fund
shares
sold
.......................................................................
128‌
–‌
–‌
Investment
securities
sold
.............................................................
–‌
46‌
10,591‌
Total
Assets  
170,279‌
157,801‌
3,559,698‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
7‌
15‌
146‌
Accrued
distribution
fees
....................................................................
35‌
32‌
731‌
Accrued
chief
compliance
officer
fees
......................................................
–‌
–‌
1‌
Accrued
directors'
expenses
.................................................................
2‌
2‌
17‌
Accrued
other
expenses
.....................................................................
7‌
8‌
8‌
Payables:
Fund
shares
redeemed
.................................................................
95‌
57‌
10,590‌
Investment
securities
purchased
......................................................
34‌
–‌
–‌
Variation
margin
on
futures
...........................................................
–‌
38‌
–‌
Total
Liabilities  
180‌
152‌
11,493‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
170,099‌
$
157,649‌
$
3,548,205‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
137,354‌
$
147,696‌
$
2,391,032‌
Total
distributable
earnings
(accumulated
loss)
.............................................
32,745‌
9,953‌
1,157,173‌
Total
Net
Assets 
$
170,099‌
$
157,649‌
$
3,548,205‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
300,000‌
Net
Asset
Value
Per
Share:
Class
2
:
Net
Assets
..........................................................................
$
170,099‌
$
157,649‌
$
3,548,205‌
Shares
issued
and
outstanding
........................................................
13,081‌
13,530‌
192,225‌
Net
Asset
Value
per
share
.............................................................
$
13.00‌
$
11.65‌
$
18.46‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
3
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Diversified
Income
Account
Investment
in
affiliated
securities--at
cost
................................................
$
295,391‌
$
794,494‌
$
239,859‌
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
342,083‌
$
820,858‌
$
285,119‌
Deposits
with
counterparty
..................................................................
–‌
5,544‌
–‌
Receivables:
Fund
shares
sold
.......................................................................
66‌
–‌
764‌
Investment
securities
sold
.............................................................
3,001‌
1,505‌
–‌
Total
Assets  
345,150‌
827,907‌
285,883‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
14‌
80‌
11‌
Accrued
distribution
fees
....................................................................
71‌
168‌
58‌
Accrued
directors'
expenses
.................................................................
3‌
5‌
3‌
Accrued
other
expenses
.....................................................................
7‌
5‌
7‌
Payables:
Fund
shares
redeemed
.................................................................
3,066‌
1,881‌
509‌
Investment
securities
purchased
......................................................
–‌
–‌
255‌
Variation
margin
on
futures
...........................................................
–‌
982‌
–‌
Total
Liabilities  
3,161‌
3,121‌
843‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
341,989‌
$
824,786‌
$
285,040‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
271,444‌
$
778,476‌
$
228,455‌
Total
distributable
earnings
(accumulated
loss)
.............................................
70,545‌
46,310‌
56,585‌
Total
Net
Assets 
$
341,989‌
$
824,786‌
$
285,040‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
50,000‌
Net
Asset
Value
Per
Share:
Class
2
:
Net
Assets
..........................................................................
$
341,989‌
$
824,786‌
$
285,040‌
Shares
issued
and
outstanding
........................................................
25,572‌
70,548‌
20,121‌
Net
Asset
Value
per
share
.............................................................
$
13.37‌
$
11.69‌
$
14.17‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
4
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
International
Account
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Investment
in
securities--at
cost
..........................................................
$
201,823‌
$
431,356‌
$
226,217‌
Investment
in
affiliated
securities--at
cost
................................................
$
623‌
$
13,745‌
$
20,544‌
Foreign
currency--at
cost
..................................................................
$
42‌
$
–‌
$
–‌
Assets
Investment
in
securities--at
value 
..........................................................
$
234,215‌
(a)
$
636,748‌
$
231,981‌
Investment
in
affiliated
securities--at
value
.................................................
623‌
13,745‌
20,544‌
Foreign
currency--at
value
..................................................................
41‌
–‌
–‌
Deposits
with
counterparty
..................................................................
–‌
–‌
209‌
Receivables:
Dividends
and
interest
.................................................................
840‌
1,587‌
704‌
Fund
shares
sold
.......................................................................
145‌
224‌
1,084‌
Investment
securities
sold
.............................................................
494‌
12,842‌
3,121‌
Variation
margin
on
futures
...........................................................
–‌
–‌
19‌
Total
Assets  
236,358‌
665,146‌
257,662‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
162‌
259‌
99‌
Accrued
distribution
fees
....................................................................
–‌
5‌
–‌
Accrued
directors'
expenses
.................................................................
3‌
6‌
3‌
Accrued
other
expenses
.....................................................................
45‌
20‌
7‌
Cash
overdraft
...............................................................................
–‌
1‌
–‌
Payables:
Fund
shares
redeemed
.................................................................
268‌
317‌
107‌
Investment
securities
purchased
......................................................
577‌
12,730‌
15,718‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
3,079‌
–‌
–‌
Total
Liabilities  
4,134‌
13,338‌
15,934‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
232,224‌
$
651,808‌
$
241,728‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
202,301‌
$
401,254‌
$
237,877‌
Total
distributable
earnings
(accumulated
loss)
.............................................
29,923‌
250,554‌
3,851‌
Total
Net
Assets 
$
232,224‌
$
651,808‌
$
241,728‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000‌
200,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
232,224‌
$
626,137‌
$
241,728‌
Shares
issued
and
outstanding
........................................................
16,264‌
26,031‌
24,060‌
Net
Asset
Value
per
share
.............................................................
$
14.28‌
$
24.05‌
$
10.05‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
$
25,671‌
N/A‌
Shares
issued
and
outstanding
........................................................
1,079‌
Net
Asset
Value
per
share
.............................................................
$
23.80‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
5
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
Investment
in
securities--at
cost
..........................................................
$
66,266‌
$
340,950‌
$
1,579,071‌
Investment
in
affiliated
securities--at
cost
................................................
$
1,445‌
$
11,023‌
$
35,799‌
Foreign
currency--at
cost
..................................................................
$
61‌
$
–‌
$
–‌
Assets
Investment
in
securities--at
value 
..........................................................
$
74,517‌
(a)
$
534,821‌
(a)
$
2,533,373‌
(a)
Investment
in
affiliated
securities--at
value
.................................................
1,445‌
11,032‌
35,799‌
Foreign
currency--at
value
..................................................................
60‌
–‌
–‌
Cash
.........................................................................................
–‌
2‌
8‌
Deposits
with
counterparty
..................................................................
–‌
336‌
–‌
Receivables:
Dividends
and
interest
.................................................................
250‌
117‌
2,027‌
Expense
reimbursement
from
Manager
...............................................
–‌
5‌
–‌
Fund
shares
sold
.......................................................................
15‌
158‌
84‌
Investment
securities
sold
.............................................................
1,471‌
351‌
–‌
Variation
margin
on
futures
...........................................................
–‌
51‌
495‌
Total
Assets  
77,758‌
546,873‌
2,571,786‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
69‌
306‌
534‌
Accrued
distribution
fees
....................................................................
–‌
–‌
4‌
Accrued
directors'
expenses
.................................................................
2‌
2‌
14‌
Accrued
other
expenses
.....................................................................
25‌
9‌
23‌
Payables:
Fund
shares
redeemed
.................................................................
40‌
670‌
6,858‌
Investment
securities
purchased
......................................................
1,506‌
501‌
–‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
53‌
2,132‌
2,866‌
Total
Liabilities  
1,695‌
3,620‌
10,299‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
76,063‌
$
543,253‌
$
2,561,487‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
69,672‌
$
293,035‌
$
1,271,706‌
Total
distributable
earnings
(accumulated
loss)
.............................................
6,391‌
250,218‌
1,289,781‌
Total
Net
Assets 
$
76,063‌
$
543,253‌
$
2,561,487‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
300,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
76,063‌
$
543,253‌
$
2,542,734‌
Shares
issued
and
outstanding
........................................................
4,914‌
13,056‌
130,145‌
Net
Asset
Value
per
share
.............................................................
$
15.48‌
$
41.61‌
$
19.54‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
N/A‌
$
18,753‌
Shares
issued
and
outstanding
........................................................
972‌
Net
Asset
Value
per
share
.............................................................
$
19.30‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
6
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Principal
Capital
Appreciation
Account
Investment
in
securities--at
cost
..........................................................
$
142,565‌
$
368,426‌
$
75,831‌
Investment
in
affiliated
securities--at
cost
................................................
$
13,007‌
$
923‌
$
2,159‌
Assets
Investment
in
securities--at
value 
..........................................................
$
201,786‌
(a)
$
541,269‌
(a)
$
141,675‌
Investment
in
affiliated
securities--at
value
.................................................
13,007‌
923‌
2,159‌
Cash
.........................................................................................
–‌
328‌
–‌
Deposits
with
counterparty
..................................................................
67‌
–‌
–‌
Receivables:
Dividends
and
interest
.................................................................
161‌
94‌
117‌
Fund
shares
sold
.......................................................................
12‌
5‌
–‌
Investment
securities
sold
.............................................................
–‌
918‌
175‌
Variation
margin
on
futures
...........................................................
40‌
–‌
–‌
Total
Assets  
215,073‌
543,537‌
144,126‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
80‌
245‌
74‌
Accrued
distribution
fees
....................................................................
–‌
4‌
3‌
Accrued
directors'
expenses
.................................................................
2‌
5‌
3‌
Accrued
other
expenses
.....................................................................
13‌
9‌
9‌
Cash
overdraft
...............................................................................
3‌
–‌
–‌
Payables:
Fund
shares
redeemed
.................................................................
1,351‌
2,365‌
987‌
Investment
securities
purchased
......................................................
–‌
271‌
41‌
Options
and
swaptions
contracts
written
 (premiums
received
$
1483
,
$
0
and
$
0
)
....
880‌
–‌
–‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
248‌
197‌
–‌
Total
Liabilities  
2,577‌
3,096‌
1,117‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
212,496‌
$
540,441‌
$
143,009‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
148,613‌
$
281,785‌
$
68,688‌
Total
distributable
earnings
(accumulated
loss)
.............................................
63,883‌
258,656‌
74,321‌
Total
Net
Assets 
$
212,496‌
$
540,441‌
$
143,009‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000‌
105,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
212,496‌
$
521,494‌
$
129,880‌
Shares
issued
and
outstanding
........................................................
14,537‌
9,148‌
4,378‌
Net
Asset
Value
per
share
.............................................................
$
14.62‌
$
57.01‌
$
29.66‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
$
18,947‌
$
13,129‌
Shares
issued
and
outstanding
........................................................
336‌
449‌
Net
Asset
Value
per
share
.............................................................
$
56.45‌
$
29.24‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
7
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Investment
in
affiliated
securities--at
cost
................................................
$
30,959‌
$
155,963‌
$
176,778‌
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
33,524‌
$
169,929‌
$
190,051‌
Receivables:
Dividends
and
interest
.................................................................
26‌
96‌
67‌
Fund
shares
sold
.......................................................................
26‌
100‌
478‌
Investment
securities
sold
.............................................................
–‌
598‌
–‌
Total
Assets  
33,576‌
170,723‌
190,596‌
Liabilities
Accrued
directors'
expenses
.................................................................
1‌
2‌
2‌
Accrued
professional
fees
...................................................................
7‌
–‌
–‌
Accrued
other
expenses
.....................................................................
–‌
7‌
7‌
Payables:
Fund
shares
redeemed
.................................................................
11‌
698‌
252‌
Investment
securities
purchased
......................................................
41‌
96‌
294‌
Total
Liabilities  
60‌
803‌
555‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
33,516‌
$
169,920‌
$
190,041‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
29,119‌
$
144,718‌
$
168,933‌
Total
distributable
earnings
(accumulated
loss)
.............................................
4,397‌
25,202‌
21,108‌
Total
Net
Assets 
$
33,516‌
$
169,920‌
$
190,041‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000‌
200,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
33,516‌
$
169,920‌
$
190,041‌
Shares
issued
and
outstanding
........................................................
2,587‌
12,290‌
14,849‌
Net
Asset
Value
per
share
.............................................................
$
12.96‌
$
13.83‌
$
12.80‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
8
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Investment
in
affiliated
securities--at
cost
................................................
$
79,212‌
$
35,965‌
$
8,478‌
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
84,843‌
$
38,966‌
$
8,656‌
Receivables:
Dividends
and
interest
.................................................................
17‌
4‌
–‌
Fund
shares
sold
.......................................................................
174‌
46‌
13‌
Total
Assets  
85,034‌
39,016‌
8,669‌
Liabilities
Accrued
directors'
expenses
.................................................................
2‌
2‌
2‌
Accrued
professional
fees
...................................................................
–‌
7‌
6‌
Accrued
other
expenses
.....................................................................
7‌
–‌
–‌
Payables:
Fund
shares
redeemed
.................................................................
67‌
11‌
–‌
Investment
securities
purchased
......................................................
124‌
39‌
13‌
Total
Liabilities  
200‌
59‌
21‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
84,834‌
$
38,957‌
$
8,648‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
75,391‌
$
34,240‌
$
8,175‌
Total
distributable
earnings
(accumulated
loss)
.............................................
9,443‌
4,717‌
473‌
Total
Net
Assets 
$
84,834‌
$
38,957‌
$
8,648‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
100,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
84,834‌
$
38,957‌
$
8,648‌
Shares
issued
and
outstanding
........................................................
5,451‌
2,636‌
627‌
Net
Asset
Value
per
share
.............................................................
$
15.56‌
$
14.78‌
$
13.79‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
9
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Investment
in
securities--at
cost
..........................................................
$
–‌
$
113,023‌
$
–‌
Investment
in
affiliated
securities--at
cost
................................................
$
25,041‌
$
42‌
$
532,703‌
Assets
Investment
in
securities--at
value 
..........................................................
$
–‌
$
130,434‌
$
–‌
Investment
in
affiliated
securities--at
value
.................................................
26,952‌
42‌
633,815‌
Receivables:
Dividends
and
interest
.................................................................
24‌
491‌
272‌
Fund
shares
sold
.......................................................................
444‌
60‌
75‌
Investment
securities
sold
.............................................................
–‌
220‌
492‌
Total
Assets  
27,420‌
131,247‌
634,654‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
–‌
91‌
121‌
Accrued
distribution
fees
....................................................................
–‌
1‌
24‌
Accrued
directors'
expenses
.................................................................
2‌
3‌
4‌
Accrued
professional
fees
...................................................................
–‌
8‌
–‌
Accrued
other
expenses
.....................................................................
7‌
–‌
8‌
Payables:
Fund
shares
redeemed
.................................................................
–‌
35‌
567‌
Investment
securities
purchased
......................................................
468‌
–‌
271‌
Total
Liabilities  
477‌
138‌
995‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
26,943‌
$
131,109‌
$
633,659‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
24,051‌
$
98,513‌
$
496,573‌
Total
distributable
earnings
(accumulated
loss)
.............................................
2,892‌
32,596‌
137,086‌
Total
Net
Assets 
$
26,943‌
$
131,109‌
$
633,659‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000‌
300,000‌
300,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
26,943‌
$
125,019‌
$
516,836‌
Shares
issued
and
outstanding
........................................................
2,213‌
6,748‌
34,413‌
Net
Asset
Value
per
share
.............................................................
$
12.17‌
$
18.53‌
$
15.02‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
$
6,090‌
$
116,823‌
Shares
issued
and
outstanding
........................................................
328‌
7,888‌
Net
Asset
Value
per
share
.............................................................
$
18.56‌
$
14.81‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
10
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Investment
in
affiliated
securities--at
cost
................................................
$
158,707‌
$
280,559‌
$
162,045‌
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
176,871‌
$
328,557‌
$
173,850‌
Receivables:
Dividends
and
interest
.................................................................
113‌
53‌
153‌
Fund
shares
sold
.......................................................................
157‌
4‌
19‌
Investment
securities
sold
.............................................................
–‌
112‌
163‌
Total
Assets  
177,141‌
328,726‌
174,185‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
34‌
62‌
33‌
Accrued
distribution
fees
....................................................................
5‌
27‌
7‌
Accrued
directors'
expenses
.................................................................
2‌
3‌
2‌
Accrued
other
expenses
.....................................................................
7‌
8‌
7‌
Payables:
Fund
shares
redeemed
.................................................................
45‌
116‌
182‌
Investment
securities
purchased
......................................................
226‌
53‌
152‌
Total
Liabilities  
319‌
269‌
383‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
176,822‌
$
328,457‌
$
173,802‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
151,429‌
$
269,980‌
$
153,278‌
Total
distributable
earnings
(accumulated
loss)
.............................................
25,393‌
58,477‌
20,524‌
Total
Net
Assets 
$
176,822‌
$
328,457‌
$
173,802‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
150,889‌
$
195,683‌
$
142,266‌
Shares
issued
and
outstanding
........................................................
12,670‌
10,441‌
11,481‌
Net
Asset
Value
per
share
.............................................................
$
11.91‌
$
18.74‌
$
12.39‌
Class
2
:
Net
Assets
..........................................................................
$
25,933‌
$
132,774‌
$
31,536‌
Shares
issued
and
outstanding
........................................................
2,210‌
7,204‌
2,576‌
Net
Asset
Value
per
share
.............................................................
$
11.73‌
$
18.43‌
$
12.24‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
11
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
Investment
in
securities--at
cost
..........................................................
$
–‌
$
132,781‌
$
161,446‌
Investment
in
affiliated
securities--at
cost
................................................
$
259,499‌
$
2,165‌
$
5,059‌
Assets
Investment
in
securities--at
value 
..........................................................
$
–‌
$
136,018‌
(a)
$
166,358‌
(a)
Investment
in
affiliated
securities--at
value
.................................................
289,027‌
2,165‌
5,059‌
Receivables:
Dividends
and
interest
.................................................................
–‌
617‌
198‌
Expense
reimbursement
from
Manager
...............................................
–‌
1‌
–‌
Fund
shares
sold
.......................................................................
6‌
3,083‌
15‌
Investment
securities
sold
.............................................................
92‌
–‌
1,441‌
Total
Assets  
289,125‌
141,884‌
173,071‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
55‌
55‌
113‌
Accrued
distribution
fees
....................................................................
28‌
–‌
1‌
Accrued
directors'
expenses
.................................................................
3‌
2‌
3‌
Accrued
other
expenses
.....................................................................
7‌
8‌
9‌
Payables:
Fund
shares
redeemed
.................................................................
98‌
54‌
1,255‌
Investment
securities
purchased
......................................................
–‌
963‌
2,046‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–‌
1,594‌
5,634‌
Total
Liabilities  
191‌
2,676‌
9,061‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
288,934‌
$
139,208‌
$
164,010‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
249,583‌
$
131,799‌
$
145,550‌
Total
distributable
earnings
(accumulated
loss)
.............................................
39,351‌
7,409‌
18,460‌
Total
Net
Assets 
$
288,934‌
$
139,208‌
$
164,010‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
400,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
154,388‌
$
139,208‌
$
157,935‌
Shares
issued
and
outstanding
........................................................
7,608‌
52,905‌
11,525‌
Net
Asset
Value
per
share
.............................................................
$
20.30‌
$
2.63‌
$
13.70‌
Class
2
:
Net
Assets
..........................................................................
$
134,546‌
N/A‌
$
6,075‌
Shares
issued
and
outstanding
........................................................
6,734‌
446‌
Net
Asset
Value
per
share
.............................................................
$
19.98‌
$
13.63‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
12
See
accompanying
notes.
Amounts
in
thousands
Bond
Market
Index
Account
Core
Plus
Bond
Account
Diversified
Balanced
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
250‌
$
36‌
$
–‌
Dividends
..................................................................................
194‌
42‌
–‌
Interest
.....................................................................................
29,477‌
3,853‌
–‌
Securities
lending
-
net
....................................................................
27‌
4‌
–‌
Total
Income
29,948‌
3,935‌
–‌
Expenses:
Management
and
investment
advisory
fees
...............................................
1,731‌
580‌
240‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
N/A‌
1,156‌
Chief
compliance
officer
expenses
........................................................
1‌
–‌
1‌
Custodian
fees
.............................................................................
22‌
10‌
–‌
Directors'
expenses
........................................................................
25‌
4‌
12‌
Professional fees
..........................................................................
3‌
3‌
3‌
Other
expenses
............................................................................
1‌
–‌
–‌
Total
Expenses
1,783‌
597‌
1,412‌
Net
Investment
Income
(Loss)
28,165‌
3,338‌
(
1,412‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
swap
agreements
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
24,611‌
3,445‌
3‌
Investment
transactions
in
affiliated
securities
............................................
–‌
–‌
19,942‌
Futures
contracts
..........................................................................
–‌
525‌
–‌
Swap
agreements
..........................................................................
–‌
2,024‌
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
89,979‌
5,573‌
5‌
Investments
in
affiliated
securities
........................................................
–‌
–‌
(
13,728‌
)
Futures
contracts
..........................................................................
–‌
70‌
–‌
Swap
agreements
..........................................................................
–‌
(
149‌
)
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
swap
agreements
114,590‌
11,488‌
6,222‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
142,755‌
$
14,826‌
$
4,810‌
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
13
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
–‌
$
35‌
$
–‌
Dividends
..................................................................................
–‌
22‌
–‌
Total
Income
–‌
57‌
–‌
Expenses:
Management
and
investment
advisory
fees
...............................................
42‌
90‌
875‌
Distribution
fees
-
Class
2
.................................................................
210‌
187‌
4,375‌
Chief
compliance
officer
expenses
........................................................
–‌
–‌
2‌
Directors'
expenses
........................................................................
3‌
3‌
37‌
Professional fees
..........................................................................
3‌
3‌
3‌
Other
expenses
............................................................................
–‌
–‌
2‌
Total
Expenses
258‌
283‌
5,294‌
Net
Investment
Income
(Loss)
(
258‌
)
(
226‌
)
(
5,294‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–‌
1,433‌
–‌
Investment
transactions
in
affiliated
securities
............................................
1,060‌
4‌
49,456‌
Futures
contracts
..........................................................................
–‌
(
1,744‌
)
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–‌
(
2,221‌
)
–‌
Investments
in
affiliated
securities
........................................................
242‌
2,076‌
(
96,362‌
)
Futures
contracts
..........................................................................
–‌
29‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
1,302‌
(
423‌
)
(
46,906‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
1,044‌
$
(
649‌
)
$
(
52,200‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
14
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Diversified
Income
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
–‌
$
184‌
$
–‌
Interest
.....................................................................................
–‌
1‌
–‌
Total
Income
–‌
185‌
–‌
Expenses:
Management
and
investment
advisory
fees
...............................................
83‌
466‌
69‌
Distribution
fees
-
Class
2
.................................................................
417‌
971‌
345‌
Directors'
expenses
........................................................................
5‌
8‌
4‌
Professional fees
..........................................................................
3‌
3‌
3‌
Other
expenses
............................................................................
–‌
1‌
–‌
Total
Expenses
508‌
1,449‌
421‌
Net
Investment
Income
(Loss)
(
508‌
)
(
1,264‌
)
(
421‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–‌
7,371‌
–‌
Investment
transactions
in
affiliated
securities
............................................
2,002‌
164‌
1,059‌
Futures
contracts
..........................................................................
–‌
(
13,584‌
)
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–‌
(
11,429‌
)
–‌
Investments
in
affiliated
securities
........................................................
(
5,667‌
)
(
1,105‌
)
6,366‌
Futures
contracts
..........................................................................
–‌
734‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
(
3,665‌
)
(
17,849‌
)
7,425‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
4,173‌
)
$
(
19,113‌
)
$
7,004‌
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
15
See
accompanying
notes.
Amounts
in
thousands
Diversified
International
Account
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
8‌
$
58‌
$
29‌
Dividends
..................................................................................
3,238‌
10,106‌
–‌
Withholding
tax
...........................................................................
(
297‌
)
(
358‌
)
–‌
Interest
.....................................................................................
–‌
–‌
2,182‌
Securities
lending
-
net
....................................................................
4‌
17‌
3‌
Total
Income
2,953‌
9,823‌
2,214‌
Expenses:
Management
and
investment
advisory
fees
...............................................
981‌
1,577‌
614‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
34‌
N/A‌
Custodian
fees
.............................................................................
59‌
6‌
3‌
Directors'
expenses
........................................................................
4‌
9‌
4‌
Professional fees
..........................................................................
19‌
3‌
3‌
Total
Expenses
1,063‌
1,629‌
624‌
Net
Investment
Income
(Loss)
1,890‌
8,194‌
1,590‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
(
7,814‌
)
(
2,222‌
)
591‌
Foreign
currency
transactions
.............................................................
(
145‌
)
–‌
–‌
Futures
contracts
..........................................................................
–‌
–‌
(
813‌
)
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
(
18,093‌
)
(
117,535‌
)
4,657‌
Futures
contracts
..........................................................................
–‌
–‌
(
214‌
)
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
3‌
–‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
(
26,049‌
)
(
119,757‌
)
4,221‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
24,159‌
)
$
(
111,563‌
)
$
5,811‌
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
16
See
accompanying
notes.
Amounts
in
thousands
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
4‌
$
28‌
$
119‌
Dividends
..................................................................................
820‌
1,437‌
25,244‌
Withholding
tax
...........................................................................
(
70‌
)
(
7‌
)
–‌
Securities
lending
-
net
....................................................................
–‌
7‌
28‌
Total
Income
754‌
1,465‌
25,391‌
Expenses:
Management
and
investment
advisory
fees
...............................................
460‌
1,728‌
3,140‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
N/A‌
20‌
Chief
compliance
officer
expenses
........................................................
–‌
–‌
1‌
Custodian
fees
.............................................................................
33‌
11‌
6‌
Directors'
expenses
........................................................................
2‌
6‌
27‌
Professional fees
..........................................................................
14‌
4‌
3‌
Other
expenses
............................................................................
–‌
–‌
16‌
Total
Gross
Expenses
509‌
1,749‌
3,213‌
Less:
Reimbursement
from
Manager
.....................................................
39‌
39‌
–‌
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
11‌
7‌
–‌
Total
Net
Expenses
459‌
1,703‌
3,213‌
Net
Investment
Income
(Loss)
295‌
(
238‌
)
22,178‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
(
3,341‌
)
25,619‌
106,204‌
Investment
transactions
in
affiliated
securities
............................................
–‌
50‌
–‌
Foreign
currency
transactions
.............................................................
(
118‌
)
–‌
–‌
Futures
contracts
..........................................................................
–‌
389‌
8,001‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
(
5,515‌
)
25,307‌
(
190,383‌
)
Investments
in
affiliated
securities
........................................................
–‌
(
64‌
)
–‌
Futures
contracts
..........................................................................
–‌
22‌
172‌
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
(
9‌
)
–‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
(
8,983‌
)
51,323‌
(
76,006‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
8,688‌
)
$
51,085‌
$
(
53,828‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
17
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Principal
Capital
Appreciation
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
43‌
$
3‌
$
11‌
Dividends
..................................................................................
1,986‌
2,194‌
1,266‌
Withholding
tax
...........................................................................
–‌
(
59‌
)
(
5‌
)
Securities
lending
-
net
....................................................................
2‌
22‌
1‌
Total
Income
2,031‌
2,160‌
1,273‌
Expenses:
Management
and
investment
advisory
fees
...............................................
467‌
1,463‌
440‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
23‌
16‌
Custodian
fees
.............................................................................
7‌
1‌
1‌
Directors'
expenses
........................................................................
3‌
7‌
3‌
Professional fees
..........................................................................
3‌
3‌
3‌
Other
expenses
............................................................................
1‌
1‌
–‌
Total
Expenses
481‌
1,498‌
463‌
Net
Investment
Income
(Loss)
1,550‌
662‌
810‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
16,037‌
27,200‌
(
590‌
)
Futures
contracts
..........................................................................
905‌
–‌
–‌
Options
and
swaptions
....................................................................
(
13,144‌
)
–‌
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
(
9,768‌
)
(
57,558‌
)
(
5,711‌
)
Futures
contracts
..........................................................................
18‌
–‌
–‌
Options
and
swaptions
....................................................................
487‌
–‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
(
5,465‌
)
(
30,358‌
)
(
6,301‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
3,915‌
)
$
(
29,696‌
)
$
(
5,491‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
18
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
232‌
$
1,005‌
$
686‌
Total
Income
232‌
1,005‌
686‌
Expenses:
Directors'
expenses
........................................................................
2‌
3‌
3‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Expenses
5‌
6‌
6‌
Net
Investment
Income
(Loss)
227‌
999‌
680‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
242‌
2,550‌
(
59‌
)
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
102‌
(
6,270‌
)
(
5,996‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
344‌
(
3,720‌
)
(
6,055‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
571‌
$
(
2,721‌
)
$
(
5,375‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
19
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
231‌
$
70‌
$
12‌
Total
Income
231‌
70‌
12‌
Expenses:
Directors'
expenses
........................................................................
2‌
2‌
2‌
Professional fees
..........................................................................
3‌
3‌
2‌
Total
Expenses
5‌
5‌
4‌
Net
Investment
Income
(Loss)
226‌
65‌
8‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
34‌
12‌
(
50‌
)
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
(
3,759‌
)
(
2,154‌
)
(
533‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
(
3,725‌
)
(
2,142‌
)
(
583‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
3,499‌
)
$
(
2,077‌
)
$
(
575‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
20
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
217‌
$
3‌
$
3,113‌
Dividends
..................................................................................
–‌
1,807‌
–‌
Total
Income
217‌
1,810‌
3,113‌
Expenses:
Management
and
investment
advisory
fees
...............................................
–‌
572‌
735‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
8‌
143‌
Custodian
fees
.............................................................................
–‌
1‌
–‌
Directors'
expenses
........................................................................
2‌
3‌
8‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Expenses
5‌
587‌
889‌
Net
Investment
Income
(Loss)
212‌
1,223‌
2,224‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–‌
3,297‌
2‌
Investment
transactions
in
affiliated
securities
............................................
99‌
–‌
1,178‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–‌
(
26,686‌
)
–‌
Investments
in
affiliated
securities
........................................................
200‌
–‌
(
33,684‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
299‌
(
23,389‌
)
(
32,504‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
511‌
$
(
22,166‌
)
$
(
30,280‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
21
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
1,288‌
$
915‌
$
1,727‌
Total
Income
1,288‌
915‌
1,727‌
Expenses:
Management
and
investment
advisory
fees
...............................................
205‌
373‌
205‌
Distribution
fees
-
Class
2
.................................................................
31‌
163‌
38‌
Directors'
expenses
........................................................................
3‌
5‌
3‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Expenses
242‌
544‌
249‌
Net
Investment
Income
(Loss)
1,046‌
371‌
1,478‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
(
83‌
)
(
414‌
)
53‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
(
6,068‌
)
(
21,875‌
)
(
4,903‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
(
6,151‌
)
(
22,289‌
)
(
4,850‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
5,105‌
)
$
(
21,918‌
)
$
(
3,372‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
22
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
239‌
$
12‌
$
9‌
Dividends
..................................................................................
–‌
–‌
1,036‌
Withholding
tax
...........................................................................
–‌
–‌
(
1‌
)
Interest
.....................................................................................
–‌
1,581‌
–‌
Securities
lending
-
net
....................................................................
–‌
1‌
70‌
Total
Income
239‌
1,594‌
1,114‌
Expenses:
Management
and
investment
advisory
fees
...............................................
326‌
325‌
670‌
Distribution
fees
-
Class
2
.................................................................
164‌
N/A‌
7‌
Custodian
fees
.............................................................................
–‌
5‌
2‌
Directors'
expenses
........................................................................
4‌
3‌
3‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Gross
Expenses
497‌
336‌
685‌
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–‌
6‌
–‌
Total
Net
Expenses
497‌
330‌
685‌
Net
Investment
Income
(Loss)
(
258‌
)
1,264‌
429‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–‌
411‌
273‌
Investment
transactions
in
affiliated
securities
............................................
(
1,050‌
)
–‌
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–‌
1,631‌
(
20,651‌
)
Investments
in
affiliated
securities
........................................................
(
21,332‌
)
–‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
(
22,382‌
)
2,042‌
(
20,378‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
22,640‌
)
$
3,306‌
$
(
19,949‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
23
See
accompanying
notes.
Amounts
in
thousands
Bond
Market
Index
Account
Core
Plus
Bond
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
28,165‌
$
63,413‌
$
3,338‌
$
8,756‌
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
swap
agreements
.......................
24,611‌
15,149‌
5,994‌
4,484‌
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
swap
agreements
...............................................................................................
89,979‌
120,981‌
5,494‌
15,149‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
142,755‌
199,543‌
14,826‌
28,389‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
63,629‌
)
–‌
(
10,172‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
63,629‌
)
–‌
(
10,172‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
323,926‌
629,823‌
26,978‌
50,731‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
678‌
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
13,863‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
63,629‌
–‌
10,172‌
Dollars
redeemed:
Class
1
..............................................................................................
(
476,682‌
)
(
503,261‌
)
(
34,029‌
)
(
120,810‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
(
1,497‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
152,756‌
)
190,191‌
(
7,051‌
)
(
46,863‌
)
Total
Increase
(Decrease)
(
10,001‌
)
326,105‌
7,775‌
(
28,646‌
)
Net
Assets
Beginning
of
period
......................................................................................
2,539,460‌
2,213,355‌
252,874‌
281,520‌
End
of
period
............................................................................................
$
2,529,459‌
$
2,539,460‌
$
260,649‌
$
252,874‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
28,945‌
59,835‌
2,276‌
4,480‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
61‌
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
1,210‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
5,969‌
–‌
891‌
Shares
redeemed:
Class
1
..............................................................................................
(
43,268‌
)
(
47,091‌
)
(
2,891‌
)
(
10,571‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
(
132‌
)
Net
Increase
(Decrease)
..................................................................................
(
14,323‌
)
18,713‌
(
615‌
)
(
4,061‌
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
24
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
(
1,412‌
)
$
20,392‌
$
(
258‌
)
$
3,259‌
Net
realized
gain
(loss)
on
investments
..................................................................
19,945‌
41,502‌
1,060‌
6,547‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
13,723‌
)
110,315‌
242‌
17,624‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
4,810‌
172,209‌
1,044‌
27,430‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
2,466‌
)
N/A‌
N/A‌
Class
2
..............................................................................................
–‌
(
58,890‌
)
–‌
(
5,335‌
)
Total
Dividends
and
Distributions
–‌
(
61,356‌
)
–‌
(
5,335‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
1,143‌
1,350‌
N/A‌
N/A‌
Class
2
..............................................................................................
2,520‌
9,218‌
3,786‌
8,008‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
2,466‌
N/A‌
N/A‌
Class
2
..............................................................................................
–‌
58,890‌
–‌
5,335‌
Dollars
redeemed:
Class
1
..............................................................................................
(
3,309‌
)
(
4,004‌
)
N/A‌
N/A‌
Class
2
..............................................................................................
(
67,299‌
)
(
155,027‌
)
(
10,966‌
)
(
21,369‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
66,945‌
)
(
87,107‌
)
(
7,180‌
)
(
8,026‌
)
Total
Increase
(Decrease)
(
62,135‌
)
23,746‌
(
6,136‌
)
14,069‌
Net
Assets
Beginning
of
period
......................................................................................
1,028,958‌
1,005,212‌
176,235‌
162,166‌
End
of
period
............................................................................................
$
966,823‌
$
1,028,958‌
$
170,099‌
$
176,235‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
73‌
83‌
N/A‌
N/A‌
Class
2
..............................................................................................
154‌
565‌
304‌
648‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
155‌
N/A‌
N/A‌
Class
2
..............................................................................................
–‌
3,699‌
–‌
429‌
Shares
redeemed:
Class
1
..............................................................................................
(
209‌
)
(
248‌
)
N/A‌
N/A‌
Class
2
..............................................................................................
(
4,192‌
)
(
9,604‌
)
(
876‌
)
(
1,721‌
)
Net
Increase
(Decrease)
..................................................................................
(
4,174‌
)
(
5,350‌
)
(
572‌
)
(
644‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
25
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
(
226‌
)
$
2,521‌
$
(
5,294‌
)
$
69,980‌
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
(
307‌
)
2,216‌
49,456‌
139,147‌
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
116‌
)
9,421‌
(
96,362‌
)
495,618‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
649‌
)
14,158‌
(
52,200‌
)
704,745‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
–‌
(
2,000‌
)
–‌
(
198,223‌
)
Total
Dividends
and
Distributions
–‌
(
2,000‌
)
–‌
(
198,223‌
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
16,830‌
68,215‌
9,187‌
21,912‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
–‌
2,000‌
–‌
198,223‌
Dollars
redeemed:
Class
2
..............................................................................................
(
3,903‌
)
(
3,985‌
)
(
180,927‌
)
(
442,824‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
12,927‌
66,230‌
(
171,740‌
)
(
222,689‌
)
Total
Increase
(Decrease)
12,278‌
78,388‌
(
223,940‌
)
283,833‌
Net
Assets
Beginning
of
period
......................................................................................
145,371‌
66,983‌
3,772,145‌
3,488,312‌
End
of
period
............................................................................................
$
157,649‌
$
145,371‌
$
3,548,205‌
$
3,772,145‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
1,461‌
6,096‌
516‌
1,219‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
–‌
178‌
–‌
11,142‌
Shares
redeemed:
Class
2
..............................................................................................
(
342‌
)
(
357‌
)
(
10,159‌
)
(
24,574‌
)
Net
Increase
(Decrease)
..................................................................................
1,119‌
5,917‌
(
9,643‌
)
(
12,213‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
26
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
(
508‌
)
$
6,246‌
$
(
1,264‌
)
$
13,065‌
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
2,002‌
16,172‌
(
6,049‌
)
12,029‌
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
5,667‌
)
40,824‌
(
11,800‌
)
64,354‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
4,173‌
)
63,242‌
(
19,113‌
)
89,448‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
–‌
(
10,642‌
)
–‌
(
10,290‌
)
Total
Dividends
and
Distributions
–‌
(
10,642‌
)
–‌
(
10,290‌
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
6,978‌
8,119‌
84,173‌
296,797‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
–‌
10,642‌
–‌
10,290‌
Dollars
redeemed:
Class
2
..............................................................................................
(
14,503‌
)
(
42,902‌
)
(
5,691‌
)
(
5,534‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,525‌
)
(
24,141‌
)
78,482‌
301,553‌
Total
Increase
(Decrease)
(
11,698‌
)
28,459‌
59,369‌
380,711‌
Net
Assets
Beginning
of
period
......................................................................................
353,687‌
325,228‌
765,417‌
384,706‌
End
of
period
............................................................................................
$
341,989‌
$
353,687‌
$
824,786‌
$
765,417‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
542‌
633‌
7,264‌
26,239‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
–‌
825‌
–‌
901‌
Shares
redeemed:
Class
2
..............................................................................................
(
1,111‌
)
(
3,332‌
)
(
491‌
)
(
478‌
)
Net
Increase
(Decrease)
..................................................................................
(
569‌
)
(
1,874‌
)
6,773‌
26,662‌
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
27
See
accompanying
notes.
Amounts
in
thousands
Diversified
Income
Account
Diversified
International
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
(
421‌
)
$
5,720‌
$
1,890‌
$
4,743‌
Net
realized
gain
(loss)
on
investments
and
foreign
currencies
.........................................
1,059‌
5,094‌
(
7,959‌
)
421‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
6,366‌
26,128‌
(
18,090‌
)
46,445‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
7,004‌
36,942‌
(
24,159‌
)
51,609‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
N/A‌
N/A‌
–‌
(
16,680‌
)
Class
2
..............................................................................................
–‌
(
10,164‌
)
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
10,164‌
)
–‌
(
16,680‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
N/A‌
N/A‌
7,295‌
16,466‌
Class
2
..............................................................................................
20,205‌
49,724‌
N/A‌
282‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
N/A‌
N/A‌
–‌
16,680‌
Class
2
..............................................................................................
–‌
10,164‌
N/A‌
–‌
Dollars
redeemed:
Class
1
..............................................................................................
N/A‌
N/A‌
(
17,680‌
)
(
34,685‌
)
Class
2
..............................................................................................
(
22,057‌
)
(
48,109‌
)
N/A‌
(
2,536‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
1,852‌
)
11,779‌
(
10,385‌
)
(
3,793‌
)
Total
Increase
(Decrease)
5,152‌
38,557‌
(
34,544‌
)
31,136‌
Net
Assets
Beginning
of
period
......................................................................................
279,888‌
241,331‌
266,768‌
235,632‌
End
of
period
............................................................................................
$
285,040‌
$
279,888‌
$
232,224‌
$
266,768‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
N/A‌
N/A‌
542‌
1,091‌
Class
2
..............................................................................................
1,491‌
3,693‌
N/A‌
19‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
N/A‌
N/A‌
–‌
1,154‌
Class
2
..............................................................................................
–‌
756‌
N/A‌
–‌
Shares
redeemed:
Class
1
..............................................................................................
N/A‌
N/A‌
(
1,262‌
)
(
2,292‌
)
Class
2
..............................................................................................
(
1,620‌
)
(
3,573‌
)
N/A‌
(
165‌
)
Net
Increase
(Decrease)
..................................................................................
(
129‌
)
876‌
(
720‌
)
(
193‌
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
28
See
accompanying
notes.
Amounts
in
thousands
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
8,194‌
$
15,671‌
$
1,590‌
$
5,203‌
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
(
2,222‌
)
25,250‌
(
222‌
)
447‌
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
117,535‌
)
143,189‌
4,443‌
8,424‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
111,563‌
)
184,110‌
5,811‌
14,074‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
31,963‌
)
–‌
(
6,457‌
)
Class
2
..............................................................................................
–‌
(
1,260‌
)
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
33,223‌
)
–‌
(
6,457‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
32,111‌
30,924‌
28,920‌
45,780‌
Class
2
..............................................................................................
1,759‌
2,812‌
N/A‌
109‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
31,963‌
–‌
6,457‌
Class
2
..............................................................................................
–‌
1,260‌
N/A‌
–‌
Dollars
redeemed:
Class
1
..............................................................................................
(
40,422‌
)
(
102,774‌
)
(
34,335‌
)
(
38,035‌
)
Class
2
..............................................................................................
(
3,262‌
)
(
3,271‌
)
N/A‌
(
2,835‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
9,814‌
)
(
39,086‌
)
(
5,415‌
)
11,476‌
Total
Increase
(Decrease)
(
121,377‌
)
111,801‌
396‌
19,093‌
Net
Assets
Beginning
of
period
......................................................................................
773,185‌
661,384‌
241,332‌
222,239‌
End
of
period
............................................................................................
$
651,808‌
$
773,185‌
$
241,728‌
$
241,332‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,383‌
1,185‌
2,909‌
4,656‌
Class
2
..............................................................................................
73‌
107‌
N/A‌
11‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
1,212‌
–‌
662‌
Class
2
..............................................................................................
–‌
48‌
N/A‌
–‌
Shares
redeemed:
Class
1
..............................................................................................
(
1,647‌
)
(
3,931‌
)
(
3,451‌
)
(
3,904‌
)
Class
2
..............................................................................................
(
134‌
)
(
127‌
)
N/A‌
(
289‌
)
Net
Increase
(Decrease)
..................................................................................
(
325‌
)
(
1,506‌
)
(
542‌
)
1,136‌
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
29
See
accompanying
notes.
Amounts
in
thousands
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
295‌
$
2,141‌
$
(
238‌
)
$
126‌
Net
realized
gain
(loss)
on
investments
,
foreign
currencies
and
futures
contracts
......................
(
3,459‌
)
(
158‌
)
26,058‌
37,349‌
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
5,524‌
)
12,106‌
25,265‌
79,915‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
8,688‌
)
14,089‌
51,085‌
117,390‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
3,085‌
)
–‌
(
34,797‌
)
Class
2
..............................................................................................
N/A‌
–‌
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
3,085‌
)
–‌
(
34,797‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
2,817‌
10,185‌
39,058‌
49,655‌
Class
2
..............................................................................................
N/A‌
300‌
N/A‌
1,475‌
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
112,835‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
3,085‌
–‌
34,797‌
Dollars
redeemed:
Class
1
..............................................................................................
(
7,795‌
)
(
17,834‌
)
(
49,543‌
)
(
72,723‌
)
Class
2
..............................................................................................
N/A‌
(
1,909‌
)
N/A‌
(
5,277‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
4,978‌
)
(
6,173‌
)
(
10,485‌
)
120,762‌
Total
Increase
(Decrease)
(
13,666‌
)
4,831‌
40,600‌
203,355‌
Net
Assets
Beginning
of
period
......................................................................................
89,729‌
84,898‌
502,653‌
299,298‌
End
of
period
............................................................................................
$
76,063‌
$
89,729‌
$
543,253‌
$
502,653‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
191‌
632‌
1,059‌
1,406‌
Class
2
..............................................................................................
N/A‌
19‌
N/A‌
42‌
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
3,150‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
198‌
–‌
1,003‌
Shares
redeemed:
Class
1
..............................................................................................
(
514‌
)
(
1,108‌
)
(
1,357‌
)
(
2,043‌
)
Class
2
..............................................................................................
N/A‌
(
121‌
)
N/A‌
(
148‌
)
Net
Increase
(Decrease)
..................................................................................
(
323‌
)
(
380‌
)
(
298‌
)
3,410‌
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
30
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Index
Account
LargeCap
S&P
500
Managed
Volatility
Index
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
22,178‌
$
46,309‌
$
1,550‌
$
3,457‌
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
options
and
swaptions
..................
114,205‌
202,727‌
3,798‌
13,103‌
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
options
and
swaptions
.................................................................................................
(
190,211‌
)
447,023‌
(
9,263‌
)
38,791‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
53,828‌
)
696,059‌
(
3,915‌
)
55,351‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
159,558‌
)
–‌
(
18,504‌
)
Class
2
..............................................................................................
–‌
(
807‌
)
N/A‌
N/A‌
Total
Dividends
and
Distributions
–‌
(
160,365‌
)
–‌
(
18,504‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
246,272‌
242,319‌
20,426‌
13,578‌
Class
2
..............................................................................................
4,590‌
6,806‌
N/A‌
N/A‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
159,558‌
–‌
18,504‌
Class
2
..............................................................................................
–‌
807‌
N/A‌
N/A‌
Dollars
redeemed:
Class
1
..............................................................................................
(
343,387‌
)
(
620,303‌
)
(
21,794‌
)
(
56,805‌
)
Class
2
..............................................................................................
(
1,338‌
)
(
872‌
)
N/A‌
N/A‌
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
93,863‌
)
(
211,685‌
)
(
1,368‌
)
(
24,723‌
)
Total
Increase
(Decrease)
(
147,691‌
)
324,009‌
(
5,283‌
)
12,124‌
Net
Assets
Beginning
of
period
......................................................................................
2,709,178‌
2,385,169‌
217,779‌
205,655‌
End
of
period
............................................................................................
$
2,561,487‌
$
2,709,178‌
$
212,496‌
$
217,779‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
15,025‌
12,839‌
1,637‌
939‌
Class
2
..............................................................................................
255‌
360‌
N/A‌
N/A‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
8,551‌
–‌
1,323‌
Class
2
..............................................................................................
–‌
44‌
N/A‌
N/A‌
Shares
redeemed:
Class
1
..............................................................................................
(
18,308‌
)
(
33,092‌
)
(
1,559‌
)
(
3,948‌
)
Class
2
..............................................................................................
(
76‌
)
(
47‌
)
N/A‌
N/A‌
Net
Increase
(Decrease)
..................................................................................
(
3,104‌
)
(
11,345‌
)
78‌
(
1,686‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
31
See
accompanying
notes.
Amounts
in
thousands
MidCap
Account
Principal
Capital
Appreciation
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
662‌
$
4,139‌
$
810‌
$
1,897‌
Net
realized
gain
(loss)
on
investments
..................................................................
27,200‌
65,028‌
(
590‌
)
9,392‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
57,558‌
)
131,244‌
(
5,711‌
)
30,626‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
29,696‌
)
200,411‌
(
5,491‌
)
41,915‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
78,890‌
)
–‌
(
14,537‌
)
Class
2
..............................................................................................
–‌
(
2,711‌
)
–‌
(
1,192‌
)
Total
Dividends
and
Distributions
–‌
(
81,601‌
)
–‌
(
15,729‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
10,484‌
16,147‌
2,935‌
2,236‌
Class
2
..............................................................................................
904‌
241‌
1,417‌
3,206‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
78,890‌
–‌
14,537‌
Class
2
..............................................................................................
–‌
2,711‌
–‌
1,192‌
Dollars
redeemed:
Class
1
..............................................................................................
(
48,216‌
)
(
96,550‌
)
(
11,285‌
)
(
26,520‌
)
Class
2
..............................................................................................
(
1,697‌
)
(
1,662‌
)
(
1,330‌
)
(
1,378‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
38,525‌
)
(
223‌
)
(
8,263‌
)
(
6,727‌
)
Total
Increase
(Decrease)
(
68,221‌
)
118,587‌
(
13,754‌
)
19,459‌
Net
Assets
Beginning
of
period
......................................................................................
608,662‌
490,075‌
156,763‌
137,304‌
End
of
period
............................................................................................
$
540,441‌
$
608,662‌
$
143,009‌
$
156,763‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
203‌
272‌
111‌
77‌
Class
2
..............................................................................................
17‌
4‌
49‌
109‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
1,395‌
–‌
509‌
Class
2
..............................................................................................
–‌
48‌
–‌
42‌
Shares
redeemed:
Class
1
..............................................................................................
(
863‌
)
(
1,633‌
)
(
395‌
)
(
894‌
)
Class
2
..............................................................................................
(
31‌
)
(
28‌
)
(
46‌
)
(
47‌
)
Net
Increase
(Decrease)
..................................................................................
(
674‌
)
58‌
(
281‌
)
(
204‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
32
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
227‌
$
806‌
$
999‌
$
4,648‌
Net
realized
gain
(loss)
on
investments
..................................................................
242‌
613‌
2,550‌
3,295‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
102‌
2,832‌
(
6,270‌
)
22,973‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
571‌
4,251‌
(
2,721‌
)
30,916‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
2,623‌
)
–‌
(
12,571‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
2,623‌
)
–‌
(
12,571‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
6,064‌
4,033‌
18,901‌
36,143‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
57‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
2,623‌
–‌
12,571‌
Dollars
redeemed:
Class
1
..............................................................................................
(
4,618‌
)
(
8,675‌
)
(
36,735‌
)
(
48,621‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
(
1,506‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
1,446‌
(
2,019‌
)
(
17,834‌
)
(
1,356‌
)
Total
Increase
(Decrease)
2,017‌
(
391‌
)
(
20,555‌
)
16,989‌
Net
Assets
Beginning
of
period
......................................................................................
31,499‌
31,890‌
190,475‌
173,486‌
End
of
period
............................................................................................
$
33,516‌
$
31,499‌
$
169,920‌
$
190,475‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
491‌
316‌
1,394‌
2,639‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
4‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
211‌
–‌
940‌
Shares
redeemed:
Class
1
..............................................................................................
(
374‌
)
(
675‌
)
(
2,808‌
)
(
3,540‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
(
109‌
)
Net
Increase
(Decrease)
..................................................................................
117‌
(
148‌
)
(
1,414‌
)
(
66‌
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
33
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2030
Account
Principal
LifeTime
2040
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
680‌
$
4,063‌
$
226‌
$
1,770‌
Net
realized
gain
(loss)
on
investments
..................................................................
(
59‌
)
3,596‌
34‌
1,840‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
5,996‌
)
24,435‌
(
3,759‌
)
12,532‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
5,375‌
)
32,094‌
(
3,499‌
)
16,142‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
12,276‌
)
–‌
(
5,351‌
)
Class
2
..............................................................................................
N/A‌
–‌
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
12,276‌
)
–‌
(
5,351‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
35,207‌
38,567‌
12,244‌
19,903‌
Class
2
..............................................................................................
N/A‌
193‌
N/A‌
158‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
12,276‌
–‌
5,351‌
Dollars
redeemed:
Class
1
..............................................................................................
(
21,963‌
)
(
28,880‌
)
(
9,316‌
)
(
13,291‌
)
Class
2
..............................................................................................
N/A‌
(
2,217‌
)
N/A‌
(
905‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
13,244‌
19,939‌
2,928‌
11,216‌
Total
Increase
(Decrease)
7,869‌
39,757‌
(
571‌
)
22,007‌
Net
Assets
Beginning
of
period
......................................................................................
182,172‌
142,415‌
85,405‌
63,398‌
End
of
period
............................................................................................
$
190,041‌
$
182,172‌
$
84,834‌
$
85,405‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
2,838‌
3,010‌
814‌
1,269‌
Class
2
..............................................................................................
N/A‌
15‌
N/A‌
10‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
984‌
–‌
350‌
Shares
redeemed:
Class
1
..............................................................................................
(
1,872‌
)
(
2,251‌
)
(
629‌
)
(
853‌
)
Class
2
..............................................................................................
N/A‌
(
172‌
)
N/A‌
(
57‌
)
Net
Increase
(Decrease)
..................................................................................
966‌
1,586‌
185‌
719‌
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
34
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
65‌
$
748‌
$
8‌
$
142‌
Net
realized
gain
(loss)
on
investments
..................................................................
12‌
939‌
(
50‌
)
203‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
2,154‌
)
6,530‌
(
533‌
)
1,153‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
2,077‌
)
8,217‌
(
575‌
)
1,498‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
2,861‌
)
–‌
(
454‌
)
Class
2
..............................................................................................
N/A‌
–‌
N/A‌
N/A‌
Total
Dividends
and
Distributions
–‌
(
2,861‌
)
–‌
(
454‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
5,180‌
7,098‌
3,150‌
4,342‌
Class
2
..............................................................................................
N/A‌
93‌
N/A‌
N/A‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
2,861‌
–‌
454‌
Dollars
redeemed:
Class
1
..............................................................................................
(
3,027‌
)
(
6,652‌
)
(
2,058‌
)
(
2,358‌
)
Class
2
..............................................................................................
N/A‌
(
1,155‌
)
N/A‌
N/A‌
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
2,153‌
2,245‌
1,092‌
2,438‌
Total
Increase
(Decrease)
76‌
7,601‌
517‌
3,482‌
Net
Assets
Beginning
of
period
......................................................................................
38,881‌
31,280‌
8,131‌
4,649‌
End
of
period
............................................................................................
$
38,957‌
$
38,881‌
$
8,648‌
$
8,131‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
360‌
471‌
241‌
312‌
Class
2
..............................................................................................
N/A‌
6‌
N/A‌
N/A‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
196‌
–‌
33‌
Shares
redeemed:
Class
1
..............................................................................................
(
219‌
)
(
442‌
)
(
168‌
)
(
168‌
)
Class
2
..............................................................................................
N/A‌
(
76‌
)
N/A‌
N/A‌
Net
Increase
(Decrease)
..................................................................................
141‌
155‌
73‌
177‌
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
35
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
212‌
$
661‌
$
1,223‌
$
2,548‌
Net
realized
gain
(loss)
on
investments
..................................................................
99‌
31‌
3,297‌
10,570‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
200‌
2,005‌
(
26,686‌
)
28,328‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
511‌
2,697‌
(
22,166‌
)
41,446‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
1,595‌
)
–‌
(
12,865‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
–‌
(
409‌
)
Total
Dividends
and
Distributions
–‌
(
1,595‌
)
–‌
(
13,274‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
7,496‌
7,304‌
8,622‌
13,048‌
Class
2
..............................................................................................
N/A‌
N/A‌
1,849‌
2,340‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
1,595‌
–‌
12,865‌
Class
2
..............................................................................................
N/A‌
N/A‌
–‌
409‌
Dollars
redeemed:
Class
1
..............................................................................................
(
7,343‌
)
(
4,386‌
)
(
17,940‌
)
(
31,224‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
(
1,186‌
)
(
602‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
153‌
4,513‌
(
8,655‌
)
(
3,164‌
)
Total
Increase
(Decrease)
664‌
5,615‌
(
30,821‌
)
25,008‌
Net
Assets
Beginning
of
period
......................................................................................
26,279‌
20,664‌
161,930‌
136,922‌
End
of
period
............................................................................................
$
26,943‌
$
26,279‌
$
131,109‌
$
161,930‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
629‌
609‌
449‌
621‌
Class
2
..............................................................................................
N/A‌
N/A‌
93‌
109‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
137‌
–‌
619‌
Class
2
..............................................................................................
N/A‌
N/A‌
–‌
20‌
Shares
redeemed:
Class
1
..............................................................................................
(
620‌
)
(
371‌
)
(
936‌
)
(
1,476‌
)
Class
2
..............................................................................................
N/A‌
N/A‌
(
60‌
)
(
29‌
)
Net
Increase
(Decrease)
..................................................................................
9‌
375‌
(
454‌
)
(
136‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
36
See
accompanying
notes.
Amounts
in
thousands
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
2,224‌
$
14,101‌
$
1,046‌
$
4,273‌
Net
realized
gain
(loss)
on
investments
..................................................................
1,180‌
20,849‌
(
83‌
)
4,079‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
33,684‌
)
90,645‌
(
6,068‌
)
18,902‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
30,280‌
)
125,595‌
(
5,105‌
)
27,254‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
34,485‌
)
–‌
(
7,836‌
)
Class
2
..............................................................................................
–‌
(
6,978‌
)
–‌
(
1,118‌
)
Total
Dividends
and
Distributions
–‌
(
41,463‌
)
–‌
(
8,954‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
8,582‌
11,207‌
6,413‌
10,371‌
Class
2
..............................................................................................
6,432‌
12,791‌
2,985‌
3,994‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
34,485‌
–‌
7,836‌
Class
2
..............................................................................................
–‌
6,978‌
–‌
1,118‌
Dollars
redeemed:
Class
1
..............................................................................................
(
41,605‌
)
(
102,578‌
)
(
15,249‌
)
(
24,553‌
)
Class
2
..............................................................................................
(
8,300‌
)
(
13,398‌
)
(
1,697‌
)
(
2,337‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
34,891‌
)
(
50,515‌
)
(
7,548‌
)
(
3,571‌
)
Total
Increase
(Decrease)
(
65,171‌
)
33,617‌
(
12,653‌
)
14,729‌
Net
Assets
Beginning
of
period
......................................................................................
698,830‌
665,213‌
189,475‌
174,746‌
End
of
period
............................................................................................
$
633,659‌
$
698,830‌
$
176,822‌
$
189,475‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
567‌
740‌
534‌
886‌
Class
2
..............................................................................................
442‌
852‌
252‌
338‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
2,314‌
–‌
668‌
Class
2
..............................................................................................
–‌
474‌
–‌
96‌
Shares
redeemed:
Class
1
..............................................................................................
(
2,837‌
)
(
6,736‌
)
(
1,322‌
)
(
2,065‌
)
Class
2
..............................................................................................
(
558‌
)
(
895‌
)
(
152‌
)
(
199‌
)
Net
Increase
(Decrease)
..................................................................................
(
2,386‌
)
(
3,251‌
)
(
688‌
)
(
276‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
37
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
371‌
$
6,095‌
$
1,478‌
$
4,893‌
Net
realized
gain
(loss)
on
investments
..................................................................
(
414‌
)
5,613‌
53‌
4,715‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
21,875‌
)
59,644‌
(
4,903‌
)
13,562‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
21,918‌
)
71,352‌
(
3,372‌
)
23,170‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
13,076‌
)
–‌
(
9,918‌
)
Class
2
..............................................................................................
–‌
(
8,339‌
)
–‌
(
1,807‌
)
Total
Dividends
and
Distributions
–‌
(
21,415‌
)
–‌
(
11,725‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
9,021‌
13,665‌
6,586‌
11,700‌
Class
2
..............................................................................................
4,936‌
12,305‌
3,666‌
5,814‌
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
346‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
107‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
13,076‌
–‌
9,918‌
Class
2
..............................................................................................
–‌
8,339‌
–‌
1,807‌
Dollars
redeemed:
Class
1
..............................................................................................
(
13,665‌
)
(
33,646‌
)
(
19,397‌
)
(
30,930‌
)
Class
2
..............................................................................................
(
6,764‌
)
(
14,790‌
)
(
2,266‌
)
(
4,297‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
6,472‌
)
(
1,051‌
)
(
11,411‌
)
(
5,535‌
)
Total
Increase
(Decrease)
(
28,390‌
)
48,886‌
(
14,783‌
)
5,910‌
Net
Assets
Beginning
of
period
......................................................................................
356,847‌
307,961‌
188,585‌
182,675‌
End
of
period
............................................................................................
$
328,457‌
$
356,847‌
$
173,802‌
$
188,585‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
497‌
719‌
538‌
937‌
Class
2
..............................................................................................
276‌
654‌
303‌
468‌
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
27‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
8‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
698‌
–‌
811‌
Class
2
..............................................................................................
–‌
452‌
–‌
149‌
Shares
redeemed:
Class
1
..............................................................................................
(
756‌
)
(
1,766‌
)
(
1,610‌
)
(
2,464‌
)
Class
2
..............................................................................................
(
381‌
)
(
790‌
)
(
191‌
)
(
346‌
)
Net
Increase
(Decrease)
..................................................................................
(
364‌
)
(
33‌
)
(
960‌
)
(
410‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
38
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
(
258‌
)
$
5,175‌
$
1,264‌
$
3,167‌
Net
realized
gain
(loss)
on
investments
..................................................................
(
1,050‌
)
7,194‌
411‌
367‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
21,332‌
)
56,229‌
1,631‌
2,788‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
22,640‌
)
68,598‌
3,306‌
6,322‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
10,497‌
)
–‌
(
3,392‌
)
Class
2
..............................................................................................
–‌
(
8,871‌
)
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
19,368‌
)
–‌
(
3,392‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
10,930‌
13,010‌
38,645‌
32,469‌
Class
2
..............................................................................................
5,650‌
9,949‌
N/A‌
1,115‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
10,497‌
–‌
3,392‌
Class
2
..............................................................................................
–‌
8,871‌
N/A‌
–‌
Dollars
redeemed:
Class
1
..............................................................................................
(
13,591‌
)
(
21,196‌
)
(
33,595‌
)
(
56,911‌
)
Class
2
..............................................................................................
(
6,828‌
)
(
10,097‌
)
N/A‌
(
5,301‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
3,839‌
)
11,034‌
5,050‌
(
25,236‌
)
Total
Increase
(Decrease)
(
26,479‌
)
60,264‌
8,356‌
(
22,306‌
)
Net
Assets
Beginning
of
period
......................................................................................
315,413‌
255,149‌
130,852‌
153,158‌
End
of
period
............................................................................................
$
288,934‌
$
315,413‌
$
139,208‌
$
130,852‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
556‌
625‌
14,975‌
12,624‌
Class
2
..............................................................................................
303‌
486‌
N/A‌
437‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
517‌
–‌
1,330‌
Class
2
..............................................................................................
–‌
443‌
N/A‌
–‌
Shares
redeemed:
Class
1
..............................................................................................
(
707‌
)
(
1,024‌
)
(
13,033‌
)
(
22,197‌
)
Class
2
..............................................................................................
(
344‌
)
(
496‌
)
N/A‌
(
2,065‌
)
Net
Increase
(Decrease)
..................................................................................
(
192‌
)
551‌
1,942‌
(
9,871‌
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
39
See
accompanying
notes.
Amounts
in
thousands
SmallCap
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
...................................................................................................................
$
429‌
$
976‌
Net
realized
gain
(loss)
on
investments
.........................................................................................................
273‌
12,355‌
Change
in
unrealized
appreciation/depreciation
of
investments
................................................................................
(
20,651‌
)
31,227‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
19,949‌
)
44,558‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
.....................................................................................................................................
–‌
(
28,785‌
)
Class
2
.....................................................................................................................................
–‌
(
937‌
)
Total
Dividends
and
Distributions
–‌
(
29,722‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
.....................................................................................................................................
7,176‌
7,971‌
Class
2
.....................................................................................................................................
829‌
1,072‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
–‌
28,785‌
Class
2
.....................................................................................................................................
–‌
937‌
Dollars
redeemed:
Class
1
.....................................................................................................................................
(
14,439‌
)
(
29,980‌
)
Class
2
.....................................................................................................................................
(
870‌
)
(
475‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,304‌
)
8,310‌
Total
Increase
(Decrease)
(
27,253‌
)
23,146‌
Net
Assets
Beginning
of
period
.............................................................................................................................
191,263‌
168,117‌
End
of
period
...................................................................................................................................
$
164,010‌
$
191,263‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
.....................................................................................................................................
581‌
506‌
Class
2
.....................................................................................................................................
62‌
70‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
–‌
1,996‌
Class
2
.....................................................................................................................................
–‌
65‌
Shares
redeemed:
Class
1
.....................................................................................................................................
(
1,087‌
)
(
1,890‌
)
Class
2
.....................................................................................................................................
(
63‌
)
(
30‌
)
Net
Increase
(Decrease)
.........................................................................................................................
(
507‌
)
717‌
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
40
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
Bond
Market
Index
Account,
Core
Plus
Bond
Account,
Diversified
Balanced
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
Diversified
Income
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
International
Emerging
Markets
Account,
LargeCap
Growth
Account
I,
LargeCap
S&P
500
Index
Account,
LargeCap
S&P
500
Managed
Volatility
Index
Account,
MidCap
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
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
(“ASC”)
Topic
946,
Financial
Services
-
Investment
Companies
.
The
Accounts
have
not
provided
financial
support
and
are
not
contractually
required
to
provide
financial
support
to
any
investee.
Effective
June
7,
2019,
Core
Plus
Bond
Account
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
taxable
exchange
of
5,873,000
shares
from
Income
Account
for
1,210,000
shares
valued
at
$13,863,000
of
Core
Plus
Bond
Account
at
an
approximate
exchange
rate
of
.21
and
.21
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
Income
Account,
with
a
fair
value
of
approximately
$13,145,000
and
a
cost
of
$12,607,000
and
$613,000
cash
were
the
primary
assets
acquired
by
Core
Plus
Bond
Account
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
Core
Plus
Bond
Account
were
recorded
at
fair
value.
The
net
assets
of
Income
Account
and
Core
Plus
Bond
Account
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$13,863,000
($4,875,000
of
accumulated
realized
gain)
and
$304,718,000,
respectively.
The
net
assets
of
Core
Plus
Bond
Account
immediately
following
the
acquisition
were
$318,581,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
Core
Plus
Bond
Account,
Core
Plus
Bond
Account’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$11,379,000
of
net
investment
income,
$24,559,000
of
net
realized
and
unrealized
gain
on
investments,
and
$35,938,000
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
Income
Account
that
have
been
included
in
Core
Plus
Bond
Account’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
LargeCap
Growth
Account
I
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Growth
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
non-taxable
exchange
of
4,657,000
shares
from
LargeCap
Growth
Account
for
3,150,000
shares
valued
at
$112,835,000
of
LargeCap
Growth
Account
I
at
an
approximate
exchange
rate
of
.68
and
.67
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
LargeCap
Growth
Account,
with
a
fair
value
of
approximately
$109,603,000
and
a
cost
of
$97,236,000
and
$3,176,000
cash
were
the
primary
assets
acquired
by
LargeCap
Growth
Account
I
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
LargeCap
Growth
Account
I
were
recorded
at
fair
value;
however,
the
cost
basis
of
the
investments
received
from
LargeCap
Growth
Account
were
maintained
through
the
reorganization.
The
net
assets
of
LargeCap
Growth
Account
and
LargeCap
Growth
Account
I
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$112,835,000
($650,000
of
accumulated
realized
gain)
and
$351,045,000,
respectively.
The
net
assets
of
LargeCap
Growth
Account
I
immediately
following
the
acquisition
were
$463,880,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
LargeCap
Growth
Account
I,
LargeCap
Growth
Account
I’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$132,000
of
net
investment
income,
$134,661,000
of
net
realized
and
unrealized
gain
on
investments,
and
$134,793,000
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
Growth
Account
that
have
been
included
in
LargeCap
Growth
Account
I’s
statement
of
operations
since
June
7,
2019.
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
41
Effective
June
7,
2019,
SAM
Flexible
Income
Portfolio
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Multi-Asset
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
non-taxable
exchange
of
43,000
shares
from
Multi-Asset
Income
Account
for
35,000
shares
valued
at
$453,000
of
SAM
Flexible
Income
Portfolio
at
an
approximate
exchange
rate
of
.83
and
.83
for
Class
1
and
Class
2
shares,
respectively.
$457,000
cash
was
the
primary
asset
acquired
by
SAM
Flexible
Income
Portfolio
on
June
7,
2019.
The
net
assets
of
Multi-Asset
Income
Account
and
SAM
Flexible
Income
Portfolio
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$453,000
and
$185,924,000,
respectively.
The
net
assets
of
SAM
Flexible
Income
Portfolio
immediately
following
the
acquisition
were
$186,377,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
SAM
Flexible
Income
Portfolio,
SAM
Flexible
Income
Portfolio’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$4,900,000
of
net
investment
income,
$18,302,000
of
net
realized
and
unrealized
gain
on
investments,
and
$23,202,000
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
Multi-Asset
Income
Account
that
have
been
included
in
SAM
Flexible
Income
Portfolio’s
statement
of
operations
since
June
7,
2019.
Effective
June
14,
2019,
Class
2
shares
discontinued
and
converted
into
Class
1
shares
for
the
following
Accounts:
Both
classes
of
shares
for
each
of
the
Accounts
represent
interests
in
the
same
portfolio
of
investments
and
will
vote
together
as
a
single
class,
except
where
otherwise
required
by
law
or
as
determined
by
the
Fund’s
Board
of
Directors.
In
addition,
the
Board
of
Directors
declares
separate
dividends
on
each
class
of
shares.
2.
Significant
Accounting
Policies
The
preparation
of
financial
statements
in
conformity
with
U.S. GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Accounts:
Security
Valuation.
Certain
of
the
Accounts,
including
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,
and
SAM
Strategic
Growth
Portfolio
(collectively,
the
“SAM
Portfolios”),
and
Diversified
Balanced
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
and
Diversified
Income
Account
invest
in
other
series
of
the
Fund
and
in
class
R-6
and
Institutional
shares
of
series
of
Principal
Funds,
Inc.,
which
are
valued
at
the
closing
net
asset
value
per
share
of
each
respective
fund
on
the
day
of
valuation.
In
addition,
certain
of
the
Accounts
invest
in
Principal
Exchange-Traded
Funds,
which
are
valued
at
closing
exchange
price.
The
Accounts
also
invest
in
other
publicly
traded
investment
funds.
Other
publicly
traded
investment
funds
are
valued
at
the
respective
fund’s
net
asset
value.
The
shares
of
the
other
series
of
the
Fund,
Principal
Funds,
Inc.,
Principal
Exchange-Traded
Funds,
and
other
publicly
traded
investment
funds
are
referred
to
as
the
“Underlying
Funds”.
The
Accounts
(with
the
exception
of
Diversified
Balanced
Volatility
Control
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
Diversified
Income
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
or
an
evaluated
bid
price
provided
by
a
pricing
service.
Pricing
services
use
modeling
techniques
that
incorporate
security
characteristics
such
as
current
quotations
by
broker/dealers,
coupon,
maturity,
quality,
type
of
issue,
trading
characteristics,
other
yield
and
risk
factors,
and
other
market
conditions
to
determine
an
evaluated
bid
price
or,
Core
Plus
Bond
Account
Principal
LifeTime
2020
Account
Diversified
International
Account
Principal
LifeTime
2030
Account
Government
&
High-Quality
Bond
Account
Principal
LifeTime
2040
Account
International
Emerging
Markets
Account
Principal
LifeTime
2050
Account
LargeCap
Growth
Account
I
Short-Term
Income
Account
1.
Organization
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
42
in
the
case
of
certain
credit
default
swaps,
a
mean
price
provided
by
a
pricing
service.
When
reliable
market
quotations
are
not
considered
to
be
readily
available,
which
may
be
the
case,
for
example,
with
respect
to
restricted
securities,
certain
debt
securities,
preferred
stocks,
and
foreign
securities,
the
investments
are
valued
at
their
fair
value
as
determined
in
good
faith
by
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,
provided
by
independent
pricing
services,
are
reviewed
in
the
course
of
making
a
good
faith
determination
of
a
security’s
fair
value,
including,
but
not
limited
to,
price
movements
in
American
depository
receipts
(“ADRs”),
futures
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
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
Fund
to
value
such
securities
at
prices
at
which
it
is
expected
those
shares
may
be
sold,
and
the
Manager
or
any
sub-advisor
is
authorized
to
make
such
determinations
subject
to
such
oversight
by
the
Fund’s
Board
of
Directors
as
may
occasionally
be
necessary.
Currency
Translation.
Foreign
holdings
are
translated
to
U.S.
dollars
using
the
exchange
rate
at
the
daily
close
of
the
New
York
Stock
Exchange.
The
identified
cost
of
the
Accounts’
holdings
is
translated
at
approximate
rates
prevailing
when
acquired.
Income
and
expense
amounts
are
translated
at
approximate
rates
prevailing
when
received
or
paid,
with
daily
accruals
of
such
amounts
reported
at
approximate
rates
prevailing
at
the
date
of
valuation.
Since
the
carrying
amount
of
the
foreign
securities
is
determined
based
on
the
exchange
rate
and
market
values
at
the
close
of
the
period,
it
is
not
practicable
to
isolate
that
portion
of
the
results
of
operations
arising
as
a
result
of
changes
in
the
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
during
the
period.
Net
realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
trade
and
settlement
dates
on
security
transactions,
and
the
difference
between
the
amount
of
dividends,
interest
income,
interest
expense,
and
foreign
withholding
taxes
recorded
on
the
books
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
appreciation
(depreciation)
on
translation
of
assets
and
liabilities
in
foreign
currencies
arise
from
changes
in
the
exchange
rate
relating
to
assets
and
liabilities,
other
than
investments
in
securities,
purchased
and
held
in
non-U.S.
denominated
currencies.
The
following accounts
held
securities
denominated
in
foreign
currencies
that
exceeded
5%
of
net
assets
of
the
respective
account as
of
June
30,
2020:
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
Diversified
International
Account
Euro
20.0%
Japanese
Yen
16.4
Swiss
Franc
8.7
Canadian
Dollar
7.5
British
Pound
Sterling
6.7
Hong
Kong
Dollar
6.6
International
Emerging
Markets
Account
Hong
Kong
Dollar
20.0%
South
Korean
Won
12.9
New
Taiwan
Dollar
11.9
Indian
Rupee
11.3
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
43
accrual
basis.
Discounts
and
premiums
on
securities
are
accreted/amortized,
respectively,
on
the
level
yield
method
over
the
expected
lives
of
the
respective
securities.
Callable
debt
securities
purchased
at
a
premium
are
amortized
to
the
earliest
call
date
and
to
the
callable
amount,
if
other
than
par.
The Accounts
allocate
all
income
and
realized
and
unrealized
gains
or
losses
on
a
daily
basis
to
each
class
of
shares
based
upon
the
relative
proportion
of
the
value
of
shares
outstanding
of
each class. 
Distributions
from
Real
Estate
Investment
Trusts
("REITs")
may
be
characterized
as
ordinary
income,
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
are
used
in
reporting
the
character
of
income
and
distributions
for
financial
statement
purposes.
Real
Estate
Securities
Account
receives
substantial
distributions
from
holdings
in
REITs. 
Expenses.
Expenses
directly
attributed
to
a
particular account
are
charged
to
that
account.
Other
expenses
not
directly
attributed
to
a
particular 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
of
each
class.
Expenses
specifically
attributable
to
a
particular
class
are
charged
directly
to
such
class
and
are
included
separately
in
the
statements
of
operations.
In
addition
to
the
expenses
the Accounts
bear
directly,
each
of
the Accounts
may
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 Accounts
may
own
different
proportions
of
Underlying
Funds
at
different
times,
the
amount
of
expense
incurred
indirectly
by
each Account
will
vary.
Expenses
included
in
the
statements
of
operations
of
the Accounts
reflect
the
expenses
of
each
Account
and do
not
include
any
expenses
associated
with
the
Underlying
Funds. 
Dividends
and
Distributions
to
Shareholders.
Dividends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
and
distributions
to
shareholders
from
net
investment
income
and
net
realized
gain
from
investments
and
foreign
currency
transactions
are
determined
in
accordance
with
federal
tax
regulations,
which
may
differ
from
U.S.
GAAP.
These
differences
are
primarily
due
to
differing
treatments
for
amortization
of
premiums
and
discounts,
net
operating
losses,
foreign
currency
transactions,
options
and
futures
contracts,
certain
defaulted
securities,
sales
of
passive
foreign
investment
companies,
losses
deferred
due
to
wash
sales,
mortgage-backed
securities,
certain
preferred
securities,
swap
agreements,
short
sales,
partnership
investments,
REITs,
utilization
of
earnings
and
profits
distributed
to
shareholders
on
redemption
of
shares,
and
limitations
imposed
by
Sections
381
–
384
of
the
Internal
Revenue
Code.
Permanent
book
and
tax
basis
differences
are
reclassified
within
the
capital
accounts
based
on
federal
tax-basis
treatment;
temporary
differences
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
current
and
accumulated
earnings
and
profits
for
federal
income
tax
purposes,
they
are
reported
as
return
of
capital
distributions.
Federal
Income
Taxes.
No
provision
for
federal
income
taxes
is
considered
necessary
because
each
of
the Accounts
intends
to
qualify
as
a
“regulated
investment
company”
under
the
Internal
Revenue
Code
and
intends
to
distribute
each
year
substantially
all
of
its
net
investment
income
and
realized
capital
gains
to
shareholders.
Management
evaluates
tax
positions
taken
or
expected
to
be
taken
in
the
course
of
preparing
the
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,
2020,
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
2016-2018.
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
the
statements
of
operations.
In
consideration
of
recent
decisions
rendered
by
European
courts,
certain
of
the Accounts
have
filed
additional
tax
reclaims
for
taxes
withheld
in
prior
years.
Due
to
the
uncertainty
and
timing
of
these
reclaims,
a
corresponding
receivable
will
only
be
recorded
when
both
the
amount
is
known
and
there
are
no
significant
uncertainties
regarding
collectability.
Gains
realized
upon
the
disposition
of
certain
foreign
securities
held
by
certain
of
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
statements
of
operations.
In
certain
countries,
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
statements
of
assets
and
liabilities. As
of June
30,
2020,
none
of
the
Accounts
had
a
deferred
tax
liability.
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
44
Recent
Accounting
Pronouncements.
In
March
2020,
the
Financial
Accounting
Standards
Board
("FASB")
issued
Accounting
Standards
Update
("ASU")
No.
2020-04,
Reference
Rate
Reform
(Topic
848);
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting,
which
provides
optional
guidance
for
a
limited
period
of
time
to
ease
the
potential
burden
in
accounting
for
(or
recognizing
the
effects
of)
reference
rate
reform.
The
guidance
is
applicable
to
contracts
referencing
LIBOR
or
another
reference
rate
that
is
expected
to
be
discontinued
due
to
reference
rate
reform. The
ASU
is
effective
as
of
March
12,
2020
and
generally
can
be
applied
through
December
31,
2022.
At
this
time,
management
is
evaluating
the
implications
of
the
ASU.
In
August
2018,
the
FASB
issued
ASU
No.
2018-13,
Fair
Value
Measurement
(Topic
820):
Disclosure
Framework
-
Changes
to
the
Disclosure
Requirements
for
Fair
Value
Measurement,
which
amends
and
eliminates
certain
disclosure
requirements
for
fair
value
as
part
of
its
framework
project.
The
ASU
is
effective
for
annual
and
interim
periods
beginning
after
December
15,
2019.
The
early
adoption
of
the
removal
or
modification
of
disclosures
and
delay
of
adoption
of
the
additional
disclosures
is
permitted.
As
of December
31,
2018,
the Accounts
have
adopted
the
removal
and
modification
of
applicable
disclosures.
In
March
2017,
the
FASB
issued
ASU
No.
2017-08,
Premium
Amortization
on
Purchased
Callable
Debt
Securities,
which
amends
the
accounting
standards
to
shorten
the
amortization
period
of
certain
purchased
callable
debt
securities
to
the
earliest
call
date.
The
ASU
is
effective
for
annual
and
interim
periods
beginning
after
December
15,
2018.
The
Accounts have
adopted
the
new
amendment
as
of
January
1,
2019.
The
adoption
of
the
ASU
resulted
in
a
cumulative
effective
adjustment
to
components
within
total
distributable
earnings
(accumulated
loss)
on
the
statements
of
assets
and
liabilities
as
of
the
beginning
of
the
fiscal
year.
This
cumulative
effective
adjustment did
not
have
a
material
impact
on
the
financial
statements
and
did
not
impact
net
assets
of
the
Accounts.
3.
Operating
Policies
Borrowings.
Pursuant
to
an
exemptive
order
issued
by
the
Securities
and
Exchange
Commission
(the
"SEC"),
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
London
Interbank
Offered Rate
("LIBOR")
rate
plus
1.00%).
The
interest
income
received
is
included
in
interest
income
on
the
statements
of
operations.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
There
were
no
outstanding
loans
or borrowings
as
of
June
30,
2020.
During
the period
ended
June
30,
2020, Accounts
lending
to
the
Facility
were
as
follows
(amounts
in
thousands):
During
the period
ended
June
30,
2020, Accounts
borrowing
from
the
Facility
were
as
follows
(amounts
in
thousands): 
Average
Daily
Amount
Loaned
Weighted
Average
Annual
Interest
Rate
Bond
Market
Index
Account
$
336
1.19
%
Core
Plus
Bond
Account
48
1.75
Diversified
Balanced
Volatility
Control
Account
1
0.64
Diversified
Growth
Volatility
Control
Account
8
0.64
Diversified
International
Account
6
1.93
Equity
Income
Account
35
0.62
International
Emerging
Markets
Account
1
2.11
LargeCap
Growth
Account
I
8
1.51
LargeCap
S&P
500
Index
Account
7
0.94
LargeCap
S&P
500
Managed
Volatility
Index
Account
21
1.01
Principal
Capital
Appreciation
Account
12
1.93
Short-Term
Income
Account
24
0.87
SmallCap
Account
1
2.14
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Diversified
Balanced
Volatility
Control
Account
$
5
2.14
%
Diversified
Growth
Volatility
Control
Account
13
2.14
Diversified
International
Account
6
0.64
Government
&
High
Quality
Bond
Account
13
1.01
LargeCap
Growth
Account
I
24
0.96
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
45
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
$100
million,
collectively.
Borrowings
are
made
solely
to
facilitate
the
handling
of
unusual
and/or
unanticipated
short-term
cash
requirements.
Interest
is
charged
to
each
participant,
based
on
its
borrowings,
at
a
rate
equal
to
the
higher
of
the
Federal
Funds
Rate
or
the
One
Month
LIBOR
rate
plus
1.00%.
Additionally,
a
commitment
fee
is
charged
at
an
annual
rate
of
.15%
on
the
amount
of
the
line
of
credit
which
is
allocated
to
each
participating
fund
based
on
average
net
assets.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
The
Accounts
did
not
borrow
against
the
line
of
credit
during
the
period
ended
June
30,
2020
.
Contingent
Convertible
Securities.
Contingent
convertible
securities
(“
CoCos
”)
are
hybrid
debt
securities
that
may
convert
into
equity
or
have
their
principal
written
down
upon
the
occurrence
of
certain
“triggers.”
Although
a
contingent
convertible
security’s
equity
conversion
and
principal
write-down
features
are
tailored
to
the
particular
issuing
banking
institution
and
its
regulatory
requirements,
triggers
are
generally
linked
to
regulatory
capital
thresholds
or
regulatory
actions
calling
into
question
such
institution’s
continued
viability
as
a
going-
concern.
CoCos
may
have
no
stated
maturity
and
fully
discretionary
coupons,
which
means
coupon
payments
can
be
canceled
at
the
issuing
banking
institution’s
discretion
or
at
the
request
of
the
relevant
regulatory
authority
without
causing
a
default.
To
provide
the
appropriate
regulatory
capital
treatment,
CoCos
are
usually
issued
in
the
form
of
subordinated
debt
instruments
that
rank
junior
to
the
claims
of
holders
of
more
senior
obligations
in
the
event
of
the
issuer’s
liquidation.
If
CoCos
are
converted
into
equity
securities
due
to
a
trigger
event,
holders
will
be
further
subordinated.
The
future
value
of
CoCos
is
unpredictable
and
is
influenced
by
many
factors
including,
without
limitation:
the
creditworthiness
of
the
issuer
and/or
fluctuations
in
such
issuer’s
applicable
capital
ratios;
supply
and
demand
for
CoCos
;
general
market
conditions
and
available
liquidity;
and
economic,
financial
and
political
events
that
affect
the
issuer,
its
particular
market
or
the
financial
markets
in
general.
Due
to
these
features,
CoCos
may
have
substantially
greater
risk
than
other
securities
in
times
of
financial
stress.
Because
of
the
uncertainty
regarding
whether
a
conversion
event
will
occur,
it
may
be
difficult
to
predict
when,
if
at
all,
a
contingent
convertible
security
will
be
converted
to
equity,
and
an
account may
suffer
losses
as
a
result.
If
the
trigger
level
is
breached,
the
issuer’s
decision
to
write
down,
write
off
or
convert
a
contingent
convertible
security
may
result
in
the
account's
complete
loss
on
an
investment
in
CoCos
with
no
chance
of
recovery
even
if
the
issuer
remains
in
existence. As
of
June
30,
2020,
Accounts
investing
in
CoCos
,
as
a
percentage
of
net
assets,
were
as
follows:
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,
as
stated
in
the
counterparties’
master
netting
agreements
(“Master
Netting
Agreements”),
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
Netting
Agreements
may
also
help
limit
counterparty
risk
by
specifying
collateral
posting
arrangements
at
pre-arranged
exposure
levels.
Under
the
Master
Netting
Agreements,
collateral
is
routinely
transferred
if
the
total
net
exposure
to
certain
transactions
governed
under
the
relevant
master
netting
agreement
with
a
counterparty
exceeds
a
specified
threshold.
Collateral
information
relating
to
securities
on
loan
is
included
in
the
securities
lending
note
to
financial
statements.
The
financial
instruments
that
are
subject
to
Master
Netting
Agreements
or
similar
agreements
may
include
right
of
setoff
provisions.
Derivative
instruments
include
provisions
to
setoff
positions
covered
under
the
agreements
with
the
same
counterparties
and
provisions
to
setoff
positions
outside
of
the
agreements
with
the
same
counterparties
in
the
event
of
default
by
one
of
the
parties.
Derivative
instruments
also
include
collateral
provisions.
Collateral
received
and
pledged
are
generally
settled
daily
with
each
counterparty.
As
of
June
30,
2020
,
no
Accounts
had
financial
assets
and
liabilities
subject
to
Master
Netting
Agreements
or
similar
agreements.
Cross
Trades. 
The
Accounts
may
engage
in
cross
trades.
A
cross
trade
is
a
purchase
or
sale
transaction
between
affiliated
portfolios
executed
directly
or
through
an
intermediary.
Mutual
funds
and
other
managed
portfolios
may
be
considered
affiliated
if
they
have
a
common
investment
advisor,
so
an
account may
be
considered
affiliated
with
any
portfolio
for
which
the
account's
sub-advisor
acts
as
an
investment
advisor.
Such
transactions
are
permissible
provided
that
the
conditions
of
Rule
17a-7
under
the
Investment
Company
Act
of
1940
are
satisfied. 
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
LargeCap
S&P
500
Index
Account
$
349
1.12
%
MidCap
Account
68
1.76
Real
Estate
Securities
Account
13
1.40
Core
Plus
Bond
Account
1.02
%
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
46
Deposits
with
Counterparty.
Cash
pledged
as
collateral
is
reflected
as
an
asset
on
the
statements
of
assets
and
liabilities
as
deposits
with
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
Customer
account
agreements
govern
cleared
derivatives
transactions
such
as
futures
contracts
and
certain
swap
agreements.
Such
transactions
require
posting
of
initial
margin
as
determined
by
each
relevant
clearing
agency
which
is
segregated
in
an
account
at
a
futures
commission
merchant
(“FCM”)
registered
with
the
Commodity
Futures
Trading
Commission.
International
Swaps
and
Derivatives
Association
(“ISDA”)
accounts
are
maintained
in
a
segregated
account
at
the
custodian
for
over-the-counter
("OTC")
derivatives.
Master
Securities
Forward
Transaction
Agreements
("MSFTA")
accounts
are
also
maintained
in
a
segregated
account
at
the
custodian
for
collateral
related
to
forward
currency
contracts
and
"to-be-announced"
("TBA")
securities.
Certain
of
the Accounts may
pledge
cash
to
a
broker
for
securities
sold
short.
As
of
June
30,
2020,
deposits
with
counterparty
were
as
follows
(amounts
in
thousands):
Deposits
from
Counterparty.
Cash
received
from
a
counterparty
as
collateral
is
reflected
as
a
liability
on
the
statements
of
assets
and
liabilities
as
deposits
from
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
The
collateral
posted
to
the Accounts
by
the
broker
is
received
in
the
account’s
custodian
account.
As
of
June
30,
2020,
deposits
from
counterparty
were
as
follows
(amounts
in
thousands):
Foreign
Currency
Contracts.
Certain
of
the
Accounts
may
be
subject
to
foreign
currency
exchange
rate
risk
in
the
normal
course
of
pursuing
such
Accounts’
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,
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.
Futures
contracts
are
marked
to
market
daily
at
the
closing
settlement
price
or
in
the
absence
of
such
a
price,
the
most
recent
quoted
bid
price.
If
there
are
no
quotations
available,
the
security
is
valued
at
the
last
available
closing
settlement
price.
During
the
period
the
futures
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
FCM
(Futures
and
Cleared
Swaps)
ISDA
(OTC
Derivatives)
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Shorts
Total
Deposits
with
Counterparty
Bond
Market
Index
Account
$
—
$
—
$
318
$
—
$
318
Core
Plus
Bond
Account
—
1
7
—
8
Diversified
Balanced
Volatility
Control
Account
216
—
—
—
216
Diversified
Growth
Volatility
Control
Account
5,544
—
—
—
5,544
Government
&
High
Quality
Bond
Account
209
—
—
—
209
LargeCap
Growth
Account
I
336
—
—
—
336
LargeCap
S&P
500
Managed
Volatility
Index
Account
—
—
—
67
67
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Total
Deposits
from
Counterparty
Bond
Market
Index
Account
$
264
$
264
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
47
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
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. 
Inflation-Indexed
Bonds.
Certain
of
the
Accounts
may
invest
in
inflation-indexed
bonds.
Inflation-indexed
bonds
are
fixed-income
securities
whose
principal
value
is
periodically
adjusted
to
the
rate
of
inflation.
The
interest
rate
on
these
bonds
is
generally
fixed
at
issuance
at
a
rate
lower
than
typical
bonds.
Over
the
life
of
an
inflation-indexed
bond,
however,
interest
will
be
paid
based
on
a
principal
value,
which
is
adjusted
for
inflation.
Any
increase
or
decrease
in
the
principal
amount
of
an
inflation-indexed
bond
will
be
included
as
interest
income
on
the
statements
of
operations,
even
though
the
Accounts
would
not
receive
the
principal
until
maturity.
Mortgage
Dollar
Rolls.
Certain
of
the
Accounts
have
entered
into
mortgage-dollar-roll
transactions
on TBA
securities,
in
which
the
Accounts
sell
mortgage-backed
securities
and
simultaneously
agree
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
Accounts
forgo
principal
and
interest
paid
on
the
securities
and
are
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 ended
June
30,
2020
,
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
an
account’s
exposure
to
the
underlying
instrument.
Writing
call
options
tends
to
decrease
an
account’s
exposure
to
the
underlying
instrument.
When
an
account
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.
An
account,
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 an
account may
not
be
able
to
enter
into
a
closing
transaction
because
of
an
illiquid
market.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
an
account as
a
writer
of
put
options
could
be
required
to
make
is
equal
to
the
notional
amount
multiplied
by
the
exercise
price
as
shown
in
the
schedule
of
investments. An
account may
also
purchase
put
and
call
options.
Purchasing
call
options
tends
to
increase an
account's
exposure
to
the
underlying
instrument.
Purchasing
put
options
tends
to
decrease an
account's
exposure
to
the
underlying
instrument.
An
account pays
a
premium
which
is
included
on
the account'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 period
end
are
included
in
the
Accounts'
schedules
of
investments.
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
Accounts
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 Fund's
policy
that
the
counterparties’
custodian
takes
possession
of
the
underlying
collateral
securities.
The
fair
value
of
the
collateral
is
at
all
times
at
least
equal
to
the
total
amount
of
the
repurchase
obligation.
In
the
event
of
default
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
48
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
domestic
and
foreign
fixed
income
loaned
securities
and
105%
of
the
market
value
of
the
foreign
equity
loaned
securities. The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
business
of
the
Accounts
and
any
additional
required
collateral
is
delivered
to
the
Accounts
on
the
next
business
day.
The
cash
collateral
received
is
usually
invested
in
a
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,
net
of
related
fees, is
shown
on
the
statements
of
operations.
As
of
June
30,
2020,
the
Accounts
had
securities
on
loan
as
follows
(amounts
in
thousands):  
Senior
Floating
Rate
Interests.
The
Accounts
may
invest
in
senior
floating
rate
interests
(bank
loans).
Senior
floating
rate
interests
typically
hold
the
most
senior
position
in
the
capital
structure
of
a
business
entity
(the
“Borrower”),
are
secured
by
specific
collateral
and
have
a
claim
on
the
assets
and/or
stock
of
the
Borrower
that
is
senior
to
that
held
by
subordinated
debtholders
and
stockholders
of
the
Borrower.
Senior
floating
rate
interests
are
typically
structured
and
administered
by
a
financial
institution
that
acts
as
the
agent
of
the
lenders
participating
in
the
senior
floating
rate
interest.
Borrowers
of
senior
floating
rate
interests
are
typically
rated
below-investment-grade,
which
means
they
are
more
likely
to
default
than
investment-grade
loans.
A
default
could
lead
to
non-payment
of
income
which
would
result
in
a
reduction
of
income
to
the
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
LIBOR
rate.
Senior
floating
rate
interests
generally
are
subject
to
mandatory
and/or
optional
prepayment.
Because
of
these
mandatory
prepayment
conditions
and
because
there
may
be
significant
economic
incentives
for
the
Borrower
to
repay,
prepayments
of
senior
floating
rate
interests
may
occur.
As
a
result,
the
actual
remaining
maturity
of
senior
floating
rate
interests
may
be
substantially
less
than
stated
maturities
shown
in
the
schedules
of
investments.
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.
Commitments
are
marked
to
market
daily
and
the
unrealized
gain
or
loss
is
shown
as
a
separate
line
item
called
unrealized
gain
or
loss
on
commitments
on
the
statements
of
assets
and
liabilities,
as
applicable.
As
of
June
30,
2020
,
the
commitments
were
as
follows
(amounts
in
thousands):
Short
Sales.
Bond
Market
Index
Account
may
enter
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
statements
of
assets
Market
Value
Collateral
Value
Bond
Market
Index
Account
$
3,430
$
3,521
Core
Plus
Bond
Account
1,080
1,123
Diversified
International
Account
1,951
3,079
International
Emerging
Markets
Account
52
53
LargeCap
Growth
Account
I
2,104
2,132
LargeCap
S&P
500
Index
Account
2,772
2,866
LargeCap
S&P
500
Managed
Volatility
Index
Account
240
248
MidCap
Account
199
197
Short-Term
Income
Account
1,547
1,594
SmallCap
Account
5,596
5,635
Unfunded
Loan
Commitment
Unrealized
gain/loss
Core
Plus
Bond
Account
$
5
$
–
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
49
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,
if
any,
appear
as
dividends
and
interest
on
shorts
on
the
statements
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
statements
of
assets
and
liabilities
and
securities
segregated
as
collateral
are
footnoted
in
the
schedules
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
statements
of
operations.
Swap
Agreements.
Core
Plus
Bond Account
entered
into
swap
agreements
during
the
period.
Swap
agreements
are
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.
In
connection
with
these
agreements,
securities
may
be
identified
as
collateral
in
accordance
with
the
terms
of
the
respective
swap
agreements
to
provide
assets
of
value
and
recourse
in
the
event
of
default
or
bankruptcy/insolvency.
Swap
agreements
are
valued
through
a
pricing
service
or
using
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
Centrally
cleared
swaps
are
valued
using
the
last
traded
price
from
the
preliminary
trading
exchange.
OTC
swaps
are
modeled
taking
into
account
the
counterparties’
creditworthiness
and
using
a
series
of
techniques,
including
simulation
models.
Changes
in
value
are
recorded
as
unrealized
gain
or
loss.
These
unrealized
gains
or
losses
are
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
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.
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
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
50
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,
which
is
less
expensive
than
it
would
be
to
buy
many
credit
default
swaps
to
achieve
a
similar
effect.
Credit
default
swaps
on
indices
are
benchmarks
for
protecting
investors
owning
bonds
against
default,
and
traders
use
them
to
speculate
on
changes
in
credit
quality.
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,
2020
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
fixed
or
floating
rate
cash
flows
based
on
changes
in
the
value
of
a
specific
reference
rate.
Certain
collateral
amounts
relate
to
exchange
cleared
swaps
which
are
not
subject
to
master
netting
agreements
with
counterparties.
To
Be
Announced
Securities.
The Accounts
may
trade
portfolio
securities
on
a
TBA
or
when-issued
basis.
In
a
TBA
or
when-issued
transaction,
the Accounts
commit
to
purchase
or
sell
securities
for
which
all
specific
information
is
not
known
at
the
time
of
the
trade.
Securities
purchased
on
a
TBA
or
when-issued
basis
are
not
settled
until
they
are
delivered
to
the
Accounts,
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
of
the
Principal
LifeTime
Accounts,
each
of
the
SAM
Portfolios,
Diversified
Balanced
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
and
Diversified
Income
Account
(singly,
“a
fund
of
funds”
and
collectively,
“the
funds
of
funds”)
directly
corresponds
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
Fund,
Principal
Funds,
Inc.,
and
some
of
the
Underlying
Funds.
The
Manager
is
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.
Shareholder
reports
for
the
Underlying
Funds
can
be
found
online
at
www.principalfunds.com.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
51
As
of
June
30,
2020,
series
of
the
Fund
owned
the
following
percentages,
in
the
aggregate,
of
the
outstanding
shares
of
the
Accounts
listed
below:
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 U.S.
Government)
include
the FNMA
and
the
Federal
Home
Loan
Mortgage
Corporation
(“FHLMC”).
The
FNMA
is
a
government
sponsored
corporation,
the
common
stock
of
which
is
owned
entirely
by
private
stockholders.
The
FNMA
purchases
conventional
residential
mortgages
from
a
list
of
approved
seller/servicers
which
include
state
and
federally
chartered
savings
and
loan
associations,
mutual
savings
banks,
commercial
banks,
credit
unions,
and
mortgage
bankers.
Pass-through
securities
issued
by
the
FNMA
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
the
FNMA,
but
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
The
FHLMC
issues
participation
certificates,
which
are
pass-through
securities,
each
representing
an
undivided
interest
in
a
pool
of
residential
mortgages.
The
FHLMC
guarantees
the
timely
payment
of
interest
and
ultimate
collection
of
principal,
but
participation
certificates
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government. 
Derivatives.
The
following
tables
provide
information
about
where
in
the
statements
of
assets
and
liabilities
and
statements
of
operations
information
about
derivatives
can
be
found
(amounts
in
thousands):
Account
Total
Percentage
of
Outstanding
Shares
Owned
Bond
Market
Index
Account
98.85%
Equity
Income
Account
31.98
Government
&
High
Quality
Bond
Account
39.30
LargeCap
S&P
500
Index
Account
86.85
LargeCap
S&P
500
Managed
Volatility
Index
Account
100.00
Asset
Derivatives
June
30,
2020
Liability
Derivatives
June
30,
2020
Derivatives
not
accounted
for
as
hedging
instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Core
Plus
Bond
Account
Credit
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
—
Payables,
Total
distributable
earnings
(accumulated
loss)
$
149
*
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
18
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
10
*
Total
$
18
*
$
159
*
Diversified
Balanced
Volatility
Control
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
29
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
Diversified
Growth
Volatility
Control
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
734
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
—
Payables,
Total
distributable
earnings
(accumulated
loss)
$
29
*
LargeCap
Growth
Account
I
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
33
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
785
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
1,223
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
880
*
Includes
cumulative
unrealized
appreciation/depreciation
of
exchange
traded
swaps
and
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.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
52
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
changing
cash
balances.
Long
and
short
U.S.
Treasury
futures
contracts
are
used
to
obtain
interest
rate
exposure
in
order
to
manage
duration
of
Core
Plus
Bond
Account
and
Government
&
High
Quality
Bond
Account.
The
notional
values
of
the
futures
contracts
will
vary
in
accordance
with
changing
duration
of
these
funds.
The
following
table
includes
a
summary
of
the
average
quarterly
outstanding
notional
by
derivative
instrument
type
for
the period
ended
June
30,
2020 (amounts
in
thousands):
Derivatives
not
accounted
for
as
hedging
instruments
Location
of
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Realized
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Change
in
Unrealized
Appreciation/
(Depreciation)
of
Derivatives
Recognized
in
Statement
of  Operations
Core
Plus
Bond
Account
Credit
contracts
Net
realized
gain
(loss)
from
Swap
agreements/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Swap
agreements
$
2,024
$
(149)
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
525
$
70
Total
$
2,549
$
(79)
Diversified
Balanced
Volatility
Control
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(1,744)
$
29
Diversified
Growth
Volatility
Control
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(13,584)
$
734
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(813)
$
(214)
LargeCap
Growth
Account
I
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
389
$
22
LargeCap
S&P
500
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
8,001
$
172
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Investment
transactions,
Futures
contracts,
and
Options
and
swaptions
/Net
change
in
unrealized
appreciation/
(depreciation)
of
Investments,
Futures
contracts,
and
Options
and
swaptions
$
872
$
39
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps
-
Buy
Protection
$
7,699
Interest
Rate
Contracts
Futures
-
Long
6,141
Futures
-
Short
10,332
Diversified
Balanced
Volatility
Control
Account
Equity
Contracts
Futures
-
Short
15,781
Diversified
Growth
Volatility
Control
Account
Equity
Contracts
Futures
-
Short
148,759
Government
&
High
Quality
Bond
Account
Interest
Rate
Contracts
Futures
-
Short
9,990
LargeCap
Growth
Account
I
Equity
Contracts
Futures
-
Long
3,194
LargeCap
S&P
500
Index
Account
Equity
Contracts
Futures
-
Long
44,818
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
53
4.
Fair
Valuation
Fair
value
is
defined
as
the
price
that
the Accounts
would
receive
upon
selling
a
security
or
transferring
a
liability in
a
timely
transaction
to
an
independent
buyer
in
the
principal
or
most
advantageous
market
of
the
security
at
the
measurement
date.
In
determining
fair
value,
the Accounts
may
use
one
or
more
of
the
following
approaches:
market,
income
and/or
cost.
A
hierarchy
for
inputs
is
used
in
measuring
fair
value
that
maximizes
the
use
of
observable
inputs
and
minimizes
the
use
of
unobservable
inputs
by
requiring
that
the
most
observable
inputs
be
used
when
available.
Observable
inputs
are
inputs
that
reflect
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
Accounts.
Unobservable
inputs
are
inputs
that
reflect
the
account's
own
estimates
about
the
estimates
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
the
best
information
available
in
the
circumstances.
The
three-tier
hierarchy
of
inputs
is
summarized
in
the
three
broad
levels
listed
below.
●
Level
1
–
Quoted
prices
are
available
in
active
markets
for
identical
securities
as
of
the
reporting
date.
Investments
which
are
generally
included
in
this
category
include listed
equities
and
listed
derivatives.
●
Level
2
–
Other
significant
observable
inputs
(including
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Investments
which
are
generally
included
in
this
category
include
certain
foreign
equities,
corporate
bonds,
senior
floating
rate
interests,
municipal
bonds,
and
U.S.
Government
and
Government
Agency
Obligations.
●
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
common
stocks,
corporate
bonds,
mortgage
backed
securities
or
senior
floating
rate
interests.
The
availability
of
observable
inputs
can
vary
from
security
to
security
and
is
affected
by
a
wide
variety
of
factors,
including,
for
example,
the
type
of
security,
whether
the
security
is
new
and
not
yet
established
in
the
market
place,
and
other
characteristics
particular
to
the
transaction.
To
the
extent
that
valuation
is
based
on
models
or
inputs
that
are
less
observable
or
unobservable
in
the
market,
the
determination
of
fair
value
requires
more
judgment.
Accordingly,
the
degree
of
judgment
exercised
by
the
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
Accounts'
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,
when
available. 
Investments
which
are
included
in
the
Level
3
category
may
be
valued
using
indicative
quoted
prices
from
brokers
and
dealers
participating
in
the
market
for
these
investments.
These
investments
are
classified
as
Level
3
investments
due
to
the
lack
of
market
transparency
and
market
corroboration
to
support
these
quoted
prices.
Valuation
models
may
be
used
as
the
pricing
source
for
other
investments
classified
as
Level
3.
Valuation
models
rely
on
one
or
more
significant
unobservable
inputs
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.
Benchmark
pricing
procedures
set
the
base
price
of
a
security
based
on
current
market
data.
The
base
price
may
be
a
broker-
dealer
quote,
transaction
price,
or
internal
value
based
on
relevant
market
data.
Contract
Type
Derivative
Type
Average
Notional
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
Contracts
Futures
-
Long
$
3,262
Purchased
Options
38
Written
Options
38
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
54
The
fair
values
of
these
securities
are
dependent
on
economic,
political,
and
other
considerations.
The
values
of
such
securities
may
be
affected
by
significant
changes
in
the
economic
conditions,
changes
in
government
policies,
and
other
factors
(e.g.,
natural
disasters,
accidents,
conflicts,
etc.).
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
The
Manager
has
established
a
valuation
committee
(“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
at
least
monthly
and
reports
directly
to
the
Board
of
Directors.
A
pricing
group
(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
approaches
established
for
each
asset
class.
The
Pricing
Group
will
consider
all
appropriate
information
available
when
determining
fair
valuation.
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.
The
following
is
a
summary
of
the
inputs
used
as
of June
30,
2020
in
valuing
the
Accounts'
securities
carried
at
value
(amounts
in
thousands):
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Bond
Market
Index
Account
Bonds*
$
—
$
790,675
$
165
$
790,840
Investment
Companies
219,402
—
—
219,402
Municipal
Bonds*
—
17,683
—
17,683
U.S.
Government
&
Government
Agency
Obligations*
—
1,643,274
—
1,643,274
Total
investments
in
securities
$
219,402
$
2,451,632
$
165
$
2,671,199
Core
Plus
Bond
Account
Bonds*
—
159,577
23
159,600
Investment
Companies
19,647
—
—
19,647
Senior
Floating
Rate
Interests*
—
2,078
—
2,078
U.S.
Government
&
Government
Agency
Obligations*
—
107,149
—
107,149
Total
investments
in
securities
$
19,647
$
268,804
$
23
$
288,474
Assets
Interest
Rate
Contracts
Futures**
18
—
—
18
Liabilities
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps**
—
(149)
—
(149)
Interest
Rate
Contracts
Futures**
(10)
—
—
(10)
Diversified
Balanced
Account
Bonds*
—
—
—
—
Investment
Companies
967,067
—
—
967,067
Total
investments
in
securities
$
967,067
$
—
$
—
$
967,067
Diversified
Balanced
Managed
Volatility
Account
Investment
Companies
170,151
—
—
170,151
Total
investments
in
securities
$
170,151
$
—
$
—
$
170,151
Diversified
Balanced
Volatility
Control
Account
Investment
Companies
157,539
—
—
157,539
Total
investments
in
securities
$
157,539
$
—
$
—
$
157,539
Assets
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
55
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Diversified
Balanced
Volatility
Control
Account
Equity
Contracts
Futures**
$
29
$
—
$
—
$
29
Diversified
Growth
Account
Investment
Companies
3,549,107
—
—
3,549,107
Total
investments
in
securities
$
3,549,107
$
—
$
—
$
3,549,107
Diversified
Growth
Managed
Volatility
Account
Investment
Companies
342,083
—
—
342,083
Total
investments
in
securities
$
342,083
$
—
$
—
$
342,083
Diversified
Growth
Volatility
Control
Account
Investment
Companies
820,858
—
—
820,858
Total
investments
in
securities
$
820,858
$
—
$
—
$
820,858
Assets
Equity
Contracts
Futures**
734
—
—
734
Diversified
Income
Account
Investment
Companies
285,119
—
—
285,119
Total
investments
in
securities
$
285,119
$
—
$
—
$
285,119
Diversified
International
Account
Common
Stocks
Basic
Materials
3,527
6,965
—
10,492
Communications
8,635
17,981
—
26,616
Consumer,
Cyclical
4,669
33,118
—
37,787
Consumer,
Non-cyclical
2,707
37,402
—
40,109
Energy
5,348
6,761
—
12,109
Financial
10,040
33,919
—
43,959
Industrial
2,250
22,413
—
24,663
Technology
1,826
27,095
—
28,921
Utilities
536
4,923
—
5,459
Investment
Companies
3,702
—
—
3,702
Preferred
Stocks
1,021
—
—
1,021
Total
investments
in
securities
$
44,261
$
190,577
$
—
$
234,838
Equity
Income
Account
Common
Stocks*
636,748
—
—
636,748
Investment
Companies
13,745
—
—
13,745
Total
investments
in
securities
$
650,493
$
—
$
—
$
650,493
Government
&
High
Quality
Bond
Account
Bonds*
—
50,120
—
50,120
Investment
Companies
20,544
—
—
20,544
U.S.
Government
&
Government
Agency
Obligations*
—
181,861
—
181,861
Total
investments
in
securities
$
20,544
$
231,981
$
—
$
252,525
Liabilities
Interest
Rate
Contracts
Futures**
(29)
—
—
(29)
International
Emerging
Markets
Account
Common
Stocks
Basic
Materials
874
2,753
—
3,627
Communications
5,536
13,748
—
19,284
Consumer,
Cyclical
1,728
4,932
—
6,660
Consumer,
Non-cyclical
1,544
5,186
—
6,730
Diversified
—
686
—
686
Energy
673
2,893
—
3,566
Financial
2,794
10,982
—
13,776
Industrial
303
4,682
—
4,985
Technology
1,582
11,991
—
13,573
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
56
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
International
Emerging
Markets
Account
Utilities
$
—
$
930
$
—
$
930
Investment
Companies
1,498
—
—
1,498
Preferred
Stocks
Communications
494
—
—
494
Technology
—
153
—
153
Total
investments
in
securities
$
17,026
$
58,936
$
—
$
75,962
LargeCap
Growth
Account
I
Common
Stocks
Basic
Materials
8,305
—
—
8,305
Communications
118,451
—
—
118,451
Consumer,
Cyclical
35,458
—
—
35,458
Consumer,
Non-cyclical
149,529
—
—
149,529
Energy
774
—
—
774
Financial
35,274
—
—
35,274
Industrial
32,047
—
—
32,047
Technology
143,091
20
90
143,201
Utilities
3,559
—
—
3,559
Convertible
Preferred
Stocks
Communications
—
—
330
330
Consumer,
Cyclical
—
214
—
214
Investment
Companies
17,602
—
—
17,602
Preferred
Stocks
Communications
—
87
119
206
Consumer,
Cyclical
—
—
657
657
Technology
—
—
246
246
Total
investments
in
securities
$
544,090
$
321
$
1,442
$
545,853
Assets
Equity
Contracts
Futures**
33
—
—
33
LargeCap
S&P
500
Index
Account
Common
Stocks*
2,525,856
—
—
2,525,856
Investment
Companies
43,316
—
—
43,316
Total
investments
in
securities
$
2,569,172
$
—
$
—
$
2,569,172
Assets
Equity
Contracts
Futures**
785
—
—
785
LargeCap
S&P
500
Managed
Volatility
Index
Account
Common
Stocks*
199,259
—
—
199,259
Investment
Companies
14,382
—
—
14,382
Purchased
Options
1,152
—
—
1,152
Total
investments
in
securities
$
214,793
$
—
$
—
$
214,793
Assets
Equity
Contracts
Futures**
71
—
—
71
Liabilities
Equity
Contracts
Written
Options
(880)
—
—
(880)
MidCap
Account
Common
Stocks
Basic
Materials
3,666
—
—
3,666
Communications
57,461
—
—
57,461
Consumer,
Cyclical
120,172
—
—
120,172
Consumer,
Non-cyclical
65,106
1,205
—
66,311
Financial
135,573
—
—
135,573
Industrial
70,698
—
—
70,698
Technology
75,208
—
—
75,208
Utilities
11,983
—
—
11,983
Investment
Companies
1,120
—
—
1,120
Total
investments
in
securities
$
540,987
$
1,205
$
—
$
542,192
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
57
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Principal
Capital
Appreciation
Account
Common
Stocks*
$
141,675
$
—
$
—
$
141,675
Investment
Companies
2,159
—
—
2,159
Total
investments
in
securities
$
143,834
$
—
$
—
$
143,834
Principal
LifeTime
2010
Account
Investment
Companies
33,524
—
—
33,524
Total
investments
in
securities
$
33,524
$
—
$
—
$
33,524
Principal
LifeTime
2020
Account
Investment
Companies
169,929
—
—
169,929
Total
investments
in
securities
$
169,929
$
—
$
—
$
169,929
Principal
LifeTime
2030
Account
Investment
Companies
190,051
—
—
190,051
Total
investments
in
securities
$
190,051
$
—
$
—
$
190,051
Principal
LifeTime
2040
Account
Investment
Companies
84,843
—
—
84,843
Total
investments
in
securities
$
84,843
$
—
$
—
$
84,843
Principal
LifeTime
2050
Account
Investment
Companies
38,966
—
—
38,966
Total
investments
in
securities
$
38,966
$
—
$
—
$
38,966
Principal
LifeTime
2060
Account
Investment
Companies
8,656
—
—
8,656
Total
investments
in
securities
$
8,656
$
—
$
—
$
8,656
Principal
LifeTime
Strategic
Income
Account
Investment
Companies
26,952
—
—
26,952
Total
investments
in
securities
$
26,952
$
—
$
—
$
26,952
Real
Estate
Securities
Account
Common
Stocks*
130,434
—
—
130,434
Investment
Companies
42
—
—
42
Total
investments
in
securities
$
130,476
$
—
$
—
$
130,476
SAM
Balanced
Portfolio
Investment
Companies
633,815
—
—
633,815
Total
investments
in
securities
$
633,815
$
—
$
—
$
633,815
SAM
Conservative
Balanced
Portfolio
Investment
Companies
176,871
—
—
176,871
Total
investments
in
securities
$
176,871
$
—
$
—
$
176,871
SAM
Conservative
Growth
Portfolio
Investment
Companies
328,557
—
—
328,557
Total
investments
in
securities
$
328,557
$
—
$
—
$
328,557
SAM
Flexible
Income
Portfolio
Investment
Companies
173,850
—
—
173,850
Total
investments
in
securities
$
173,850
$
—
$
—
$
173,850
SAM
Strategic
Growth
Portfolio
Investment
Companies
289,027
—
—
289,027
Total
investments
in
securities
$
289,027
$
—
$
—
$
289,027
Short-Term
Income
Account
Bonds*
—
120,948
—
120,948
Investment
Companies
3,759
—
—
3,759
U.S.
Government
&
Government
Agency
Obligations*
—
13,476
—
13,476
Total
investments
in
securities
$
3,759
$
134,424
$
—
$
138,183
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
58
*For
additional
detail
regarding
sector
classifications,
please
see
the
schedules
of
investments.
**Futures
are
presented
at
the
unrealized
appreciation/(depreciation)
of
the
instrument.
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.
5.
Management
Agreement
and
Transactions
with
Affiliates
Management
Services.
The
Accounts
have
agreed
to
pay
investment
advisory
and
management
fees
to
the
Manager
computed
at
an
annual
percentage
rate
of
each
account’s
average
daily
net
assets.
A
portion
of
the
management
fee
is
paid
by
the
Manager
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
Principal
LifeTime
Accounts
do
not
pay
investment
advisory
and
management
fees.
The
annual
rates
used
in
this
calculation
for
each
of
the
other
Accounts
are
as
follows:
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
SmallCap
Account
Common
Stocks*
$
164,084
$
—
$
—
$
164,084
Investment
Companies
7,333
—
—
7,333
Total
investments
in
securities
$
171,417
$
—
$
—
$
171,417
Net
Assets
of
Account
(in
millions)
First
$100
Next
$100
Next
$100
Next
$100
Thereafter
Core
Plus
Bond
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
Real
Estate
Securities
Account
.83
.78
.73
.70
.68
SmallCap
Account
.85
.80
.75
.70
.65
Net
Assets
of
Account
(in
millions)
First
$250
Next
$250
Next
$250
Next
$250
Thereafter
Diversified
International
Account
.85%
.80%
.75%
.70%
.65%
International
Emerging
Markets
Account
(Effective
May
1,
2020)
1.10
1.05
1.00
.95
.90
International
Emerging
Markets
Account
(Prior
to
May
1,
2020
1.25
1.20
1.15
1.10
1.05
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
(in
billions)
First
$2
Over
$2
Government
&
High
Quality
Bond
Account
.50%
.45%
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
59
The
Manager
has
contractually
agreed
to
limit
certain
of
the
Accounts'
management
and
investment
advisory
fees.
The
expense
limit
will
reduce
the account's
management
and
investment
advisory
fees
by
the
following
amounts:
The
Manager
has
contractually
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to account
investments,
acquired
fund
fees
and
expenses,
and
other
extraordinary
expenses)
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:
The
Manager
has
contractually
agreed
to
reduce
Short-Term
Income
Account’s
expenses
by
.01%
through
the
period
ended
April
30,
2021.
In
addition,
the
Manager
has
voluntarily
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to
account
investments,
acquired
fund
fees
and
expenses,
and
other
extraordinary
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:
Amounts
owed
to
the Accounts
under
the
terms
of
the
expense
limitation
agreements
are
reflected
in
the
statements
of
assets
and
liabilities
as
expense
reimbursement
from
Manager
and
are
settled
periodically. 
Distribution
Fees.
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.
(an
affiliate
of
the
Manager),
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
distribution
fee
rate
is
.25%.
Chief
Compliance
Officer
Expenses.
The Accounts
pay
certain
expenses
associated
with
the
Chief
Compliance
Officer
(“CCO”).
This
expense
is
allocated
based
on
the
relative
net
assets
of
each account
and
is
shown
on
the
statements
of
operations.
All
Net
Assets
Bond
Market
Index
Account
.14%
Diversified
Balanced
Account
.05
Diversified
Balanced
Managed
Volatility
Account
.05
Diversified
Balanced
Volatility
Control
Account
.12
Diversified
Growth
Account
.05
Diversified
Growth
Managed
Volatility
Account
.05
Diversified
Growth
Volatility
Control
Account
.12
Diversified
Income
Account
.05
LargeCap
S&P
500
Index
Account
.25
LargeCap
S&P
500
Managed
Volatility
Index
Account
.45
Period
from
January
1,
2020
through
June
30,
2020
Expiration
International
Emerging
Markets
Account
.150%
April
30,
2020
LargeCap
Growth
Account
I
.016
April
30,
2021
Period
from
January
1,
2020
through
June
30,
2020
Class
1
Class
2
Expiration
Diversified
Balanced
Managed
Volatility
Account
N/A
.31%
April
30,
2021
Diversified
Balanced
Volatility
Control
Account
N/A
.39
April
30,
2020
Diversified
Growth
Managed
Volatility
Account
N/A
.31
April
30,
2020
International
Emerging
Markets
Account
1.20%
N/A
April
30,
2021
LargeCap
Growth
Account
I
.69
N/A
April
30,
2021
Principal
LifeTime
2060
Account
.10
N/A
April
30,
2021
Expense
Limit
Class
2
Diversified
Income
Account
.31%
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
60
Affiliated
Ownership.
At
June
30,
2020,
the
Manager,
Principal National
Life
Insurance
Company, 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):
6.
Investment
Transactions
For
the period ended
June
30,
2020,
the
cost
of
investment
securities
purchased
and
proceeds
from
investment
securities
sold
(not
including
short-term
investments,
return
of
capital, and
U.S.
government
securities)
by
the Accounts
were
as
follows
(amounts
in
thousands):
Class
1
Class
2
Bond
Market
Index
Account
2,553
N/A
Core
Plus
Bond
Account
20,827
N/A
Diversified
Balanced
Account
2,327
55,685
Diversified
Balanced
Managed
Volatility
Account
N/A
13,081
Diversified
Balanced
Volatility
Control
Account
N/A
13,530
Diversified
Growth
Account
N/A
192,225
Diversified
Growth
Managed
Volatility
Account
N/A
25,572
Diversified
Growth
Volatility
Control
Account
N/A
70,548
Diversified
Income
Account
N/A
20,121
Diversified
International
Account
16,052
N/A
Equity
Income
Account
13,222
279
Government
&
High
Quality
Bond
Account
14,218
N/A
International
Emerging
Markets
Account
4,914
N/A
LargeCap
Growth
Account
I
12,794
N/A
LargeCap
S&P
500
Index
Account
16,276
972
MidCap
Account
8,976
11
Principal
Capital
Appreciation
Account
3,749
191
Principal
LifeTime
2010
Account
2,587
N/A
Principal
LifeTime
2020
Account
12,290
N/A
Principal
LifeTime
2030
Account
14,849
N/A
Principal
LifeTime
2040
Account
5,451
N/A
Principal
LifeTime
2050
Account
2,636
N/A
Principal
LifeTime
2060
Account
627
N/A
Principal
LifeTime
Strategic
Income
Account
2,213
N/A
Real
Estate
Securities
Account
6,728
316
SAM
Balanced
Portfolio
31,866
1,551
SAM
Conservative
Balanced
Portfolio
12,405
789
SAM
Conservative
Growth
Portfolio
9,033
849
SAM
Flexible
Income
Portfolio
10,972
1,525
SAM
Strategic
Growth
Portfolio
7,174
536
Short-Term
Income
Account
52,012
N/A
SmallCap
Account
11,288
187
Purchases
Sales
Bond
Market
Index
Account
$
510,359
$
539,958
Core
Plus
Bond
Account
196,900
169,359
Diversified
Balanced
Account
113,455
181,822
Diversified
Balanced
Managed
Volatility
Account
20,879
28,316
Diversified
Balanced
Volatility
Control
Account
30,237
51,042
Diversified
Growth
Account
382,664
559,771
Diversified
Growth
Managed
Volatility
Account
38,220
46,255
Diversified
Growth
Volatility
Control
Account
134,543
237,178
Diversified
Income
Account
46,293
48,565
Diversified
International
Account
57,945
64,681
Equity
Income
Account
82,587
83,291
Government
&
High
Quality
Bond
Account
33,564
58,453
International
Emerging
Markets
Account
26,219
31,492
LargeCap
Growth
Account
I
111,004
122,953
LargeCap
S&P
500
Index
Account
147,829
206,199
LargeCap
S&P
500
Managed
Volatility
Index
Account
12,969
10,880
MidCap
Account
52,058
86,951
Principal
Capital
Appreciation
Account
34,889
41,250
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
61
For
the period
ended June
30,
2020,
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
in
thousands):
7.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the periods
ended June
30,
2020 and
December
31,
2019 were
as
follows
(amounts
in
thousands):
Purchases
Sales
Principal
LifeTime
2010
Account
$
8,118
$
6,443
Principal
LifeTime
2020
Account
34,120
50,951
Principal
LifeTime
2030
Account
44,717
30,789
Principal
LifeTime
2040
Account
12,922
9,764
Principal
LifeTime
2050
Account
5,378
3,157
Principal
LifeTime
2060
Account
3,083
1,980
Principal
LifeTime
Strategic
Income
Account
8,792
8,424
Real
Estate
Securities
Account
30,927
36,844
SAM
Balanced
Portfolio
5,843
46,303
SAM
Conservative
Balanced
Portfolio
6,718
15,783
SAM
Conservative
Growth
Portfolio
6,727
17,110
SAM
Flexible
Income
Portfolio
7,457
20,092
SAM
Strategic
Growth
Portfolio
8,388
15,984
Short-Term
Income
Account
31,527
32,881
SmallCap
Account
27,839
31,373
Purchases
Sales
Bond
Market
Index
Account
$
538,460
$
658,508
Core
Plus
Bond
Account
68,105
87,455
Government
&
High
Quality
Bond
Account
24,451
15,201
Short-Term
Income
Account
19,201
15,189
Ordinary
Income
Long-Term
Capital
Gain
Section
1250
Gain
2020
2019
2020
2019*
2020
2019^
Bond
Market
Index
Account
$
—
$
63,629
$
—
$
—
$
—
$
—
Core
Plus
Bond
Account
—
10,172
—
—
—
—
Diversified
Balanced
Account
—
19,161
—
42,195
—
—
Diversified
Balanced
Managed
Volatility
Account
—
2,985
—
2,350
—
—
Diversified
Balanced
Volatility
Control
Account
—
1,239
—
761
—
—
Diversified
Growth
Account
—
66,048
—
132,175
—
—
Diversified
Growth
Managed
Volatility
Account
—
6,096
—
4,546
—
—
Diversified
Growth
Volatility
Control
Account
—
5,625
—
4,665
—
—
Diversified
Income
Account
—
4,545
—
5,619
—
—
Diversified
International
Account
—
4,159
—
12,521
—
—
Equity
Income
Account
—
16,637
—
16,586
—
—
Government
&
High
Quality
Bond
Account
—
6,457
—
—
—
—
International
Emerging
Markets
Account
—
802
—
2,283
—
—
LargeCap
Growth
Account
I
—
230
—
34,567
—
—
LargeCap
S&P
500
Index
Account
—
48,899
—
111,466
—
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
—
3,588
—
14,916
—
—
MidCap
Account
—
1,707
—
79,894
—
—
Principal
Capital
Appreciation
Account
—
2,602
—
13,127
—
—
Principal
LifeTime
2010
Account
—
911
—
1,712
—
—
Principal
LifeTime
2020
Account
—
4,556
—
8,015
—
—
Principal
LifeTime
2030
Account
—
3,601
—
8,675
—
—
Principal
LifeTime
2040
Account
—
1,500
—
3,851
—
—
Principal
LifeTime
2050
Account
—
719
—
2,142
—
—
Principal
LifeTime
2060
Account
—
129
—
325
—
—
6.
Investment
Transactions
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
62
$
66,615
*The
Accounts
designate
these
distributions
as
long-term
capital
gain
dividends
per
Internal
Revenue
Code
Sec.
852
(b)(3)(C)
in
the
20-percent
group
(which
may
be
taxed
at
a
20-percent
rate,
a
15-percent
rate
or
a
0-percent
rate,
depending
on
the
shareholder’s
taxable
income).
^Unrecaptured
Section
1250
gains
are
gains
from
the
sale
of
depreciable
property
that
are
subject
to
a
maximum
tax
rate
of
25%.
Certain
Accounts
may
also
utilize
earnings
and
profits
distributed
to
shareholders
on
redemptions
of
shares
as
part
of
the
dividends
paid
deduction.
For
U.S.
federal
income
tax
purposes,
short-term
capital
gain
distributions
are
considered
ordinary
income
distributions.
Distributable
Earnings.
As
of December
31,
2019,
the
components
of
total
distributable
earnings
(accumulated
loss)
on
a
federal
tax
basis
were
as
follows
(amounts
in
thousands):
Ordinary
Income
Long-Term
Capital
Gain
Section
1250
Gain
2020
2019
2020
2019*
2020
2019^
Principal
LifeTime
Strategic
Income
Account
$
—
$
609
$
—
$
986
$
—
$
—
Real
Estate
Securities
Account
—
3,501
—
9,349
—
424
SAM
Balanced
Portfolio
—
17,364
—
24,099
—
—
SAM
Conservative
Balanced
Portfolio
—
5,316
—
3,638
—
—
SAM
Conservative
Growth
Portfolio
—
5,992
—
15,423
—
—
SAM
Flexible
Income
Portfolio
—
6,506
—
5,219
—
—
SAM
Strategic
Growth
Portfolio
—
4,270
—
15,098
—
—
Short-Term
Income
Account
—
3,392
—
—
—
—
SmallCap
Account
—
6,293
—
23,429
—
—
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences*
Total
Accumulated
Earnings
(Deficit)
Bond
Market
Index
Account
$
—
$
(19,606
)
$
81,130
$
—
$
128,139
Core
Plus
Bond
Account
9,502
—
(3,611
)
5,284
10
11,185
Diversified
Balanced
Account
24,554
29,766
—
267,411
—
321,731
Diversified
Balanced
Managed
Volatility
Account
3,789
6,024
—
21,888
—
31,701
Diversified
Balanced
Volatility
Control
Account
3,187
1,296
—
6,119
—
10,602
Diversified
Growth
Account
80,730
110,068
—
1,018,575
—
1,209,373
Diversified
Growth
Managed
Volatility
Account
7,461
14,948
—
52,309
—
74,718
Diversified
Growth
Volatility
Control
Account
17,486
9,310
—
38,627
—
65,423
Diversified
Income
Account
6,760
4,036
—
38,785
—
49,581
Diversified
International
Account
6,492
—
(272
)
47,862
—
54,082
Equity
Income
Account
16,244
19,472
—
326,401
—
362,117
Government
&
High
Quality
Bond
Account
5,986
—
(9,021
)
1,107
(32
)
(1,960
)
International
Emerging
Markets
Account
1,960
—
(69
)
13,188
—
15,079
LargeCap
Growth
Account
I
3,033
29,010
—
167,090
—
199,133
LargeCap
S&P
500
Index
Account
51,949
159,289
—
1,132,371
—
1,343,609
LargeCap
S&P
500
Managed
Volatility
Index
Account
3,480
4,869
—
68,506
(9,057
)
67,798
MidCap
Account
3,538
53,798
—
231,016
—
288,352
Principal
Capital
Appreciation
Account
2,352
6,711
—
70,749
—
79,812
Principal
LifeTime
2010
Account
885
509
—
2,432
—
3,826
Principal
LifeTime
2020
Account
5,530
2,328
—
20,065
—
27,923
Principal
LifeTime
2030
Account
4,177
3,255
—
19,051
—
26,483
Principal
LifeTime
2040
Account
1,821
1,789
—
9,332
—
12,942
Principal
LifeTime
2050
Account
789
889
—
5,116
—
6,794
Principal
LifeTime
2060
Account
151
195
—
702
—
1,048
Principal
LifeTime
Strategic
Income
Account
686
—
—
1,695
—
2,381
Real
Estate
Securities
Account
2,828^
7,881
—
44,053
—
54,762
SAM
Balanced
Portfolio
14,661
19,995
—
132,710
—
167,366
SAM
Conservative
Balanced
Portfolio
4,482
3,128
—
22,888
—
30,498
SAM
Conservative
Growth
Portfolio
6,331
5,240
—
68,824
—
80,395
7.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
63
*Represents
book-to-tax
accounting
differences.
^Undistributed
Ordinary
Income
reported
includes
$257
of
undistributed
Section
1250
Capital
Gains.
Capital
Loss
Carryforwards.
For
federal
income
tax
purposes,
capital
loss
carryforwards
are
losses
that
can
be
used
to
offset
future
capital
gains
of
the
Accounts.
As
of December
31,
2019,
the Accounts had
approximate
net
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
Capital
losses
generated
in
taxable
years
beginning
after
the
enactment
date
of
the
Regulated
Investment
Company
Modernization
Act
of
2010
on
December
22,
2010,
will
be
carried
forward
with
no
expiration
and
with
the
character
of
the
loss
retained.
For
the
year
ended
December
31,
2019,
the
following
accounts
had
utilized
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
Late-Year
Losses.
A
regulated
investment
company
may
elect
to
treat
any
portion
of
its
qualified
late-year
loss
as
arising
on
the
first
day
of
the
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,
2019
,
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
U.S.
GAAP
and
tax
accounting.
Adjustments
are
made
to
reflect
the
impact
these
items
have
on
current
and
future
distributions
to
shareholders.
Therefore,
the
source
of
the Accounts'
distributions
may
be
shown
in
the
accompanying
statements
of
changes
in
net
assets
as
from
net
investment
income
and net
realized
gain
on
investments
or
from
tax
return
of
capital
depending
on
the
type
of
book
and
tax
differences
that
exist.
For
the
year
ended
December
31,
2019,
the
Accounts
recorded
reclassifications
as
follows
(amounts
in
thousands):
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences*
Total
Accumulated
Earnings
(Deficit)
SAM
Flexible
Income
Portfolio
$
5,110
$
3,760
$
—
$
15,026
$
—
$
23,896
SAM
Strategic
Growth
Portfolio
5,533
7,048
—
49,410
—
61,991
Short-Term
Income
Account
3,165
—
(656
)
1,600
(6
)
4,103
SmallCap
Account
999
12,319
—
25,091
—
38,409
Short-Term
Long-Term
Total
Bond
Market
Index
Account
$
—
$
19,606
$
19,606
Core
Plus
Bond
Account
157
3,454
3,611
Diversified
International
Account
272
—
272
Government
&
High
Quality
Bond
Account
515
8,506
9,021
International
Emerging
Markets
Account
69
—
69
Short-Term
Income
Account
—
656
656
Utilized
Bond
Market
Index
Account
$
10,914
Core
Plus
Bond
Account
3,194
SAM
Flexible
Income
Portfolio
4
Short-Term
Income
Account
333
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Diversified
Balanced
Account
$
(7,476
)
$
7,476
Diversified
Growth
Account
(18,135
)
18,135
Equity
Income
Account
(4,802
)
4,802
LargeCap
Growth
Account
I
(6,036
)
6,036
LargeCap
S&P
500
Index
Account
(40,558
)
40,558
LargeCap
S&P
500
Managed
Volatility
Index
Account
(671
)
671
MidCap
Account
(11,336
)
11,336
Principal
Capital
Appreciation
Account
(2,189
)
2,189
Real
Estate
Securities
Account
(2,323
)
2,323
SAM
Flexible
Income
Portfolio
(4
)
4
7.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
64
Federal
Income
Tax
Basis.
 As
of June
30,
2020, the
net
federal
income
tax
unrealized
appreciation
(depreciation)
and
federal
tax
cost
of
investments
held
by
the
Accounts
were
as
follows
(amounts
in
thousands):
8.
Other
Matters
As
of
the
date
these
financial
statements
were
available
to
be
issued,
the
outbreak
of
the
novel
coronavirus
(“COVID-19”)
in
many
countries
continues
to
adversely
impact
global
commercial
activity
and
has
contributed
to
significant
volatility
in
financial
markets.
The
global
impact
of
the
outbreak
has
been
rapidly
evolving
and
many
countries
have
reacted
by
instituting
quarantines
and
restriction
on
travel.
Such
measures,
as
well
as
the
general
uncertainty
surrounding
the
dangers
and
impact
of
COVID-19,
are
creating
significant
disruption
in
supply
chains
and
economic
activity.
As
COVID-19
continues
to
spread,
the
potential
impacts,
including
a
global,
regional
or
other
economic
recession,
are
increasingly
difficult
to
assess.
These
events,
or
fear
of
such
an
event,
present
material
uncertainty
and
risk
with
respect
to
the Accounts'
performance
and
financial
results.
9.
Subsequent
Events
Management
has
evaluated
events
and
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
that
would
merit
recognition
or
disclosure
in
the
financial
statements. 
There
were
no
items
requiring
adjustment
of
the
financial
statements
or
additional
disclosure.
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Bond
Market
Index
Account
$
176,326
$
(5,095)
$
171,231
$
2,499,968
Core
Plus
Bond
Account
16,082
(5,339)
10,743
277,590
Diversified
Balanced
Account
256,905
(3,217)
253,688
713,379
Diversified
Balanced
Managed
Volatility
Account
23,989
(1,859)
22,130
148,021
Diversified
Balanced
Volatility
Control
Account
9,063
(3,060)
6,003
151,565
Diversified
Growth
Account
955,406
(33,193)
922,213
2,626,894
Diversified
Growth
Managed
Volatility
Account
51,790
(5,149)
46,641
295,442
Diversified
Growth
Volatility
Control
Account
47,860
(21,033)
26,827
794,765
Diversified
Income
Account
46,465
(1,315)
45,150
239,969
Diversified
International
Account
44,170
(14,386)
29,784
205,054
Equity
Income
Account
240,366
(31,500)
208,866
441,627
Government
&
High
Quality
Bond
Account
8,812
(3,262)
5,550
246,946
International
Emerging
Markets
Account
13,657
(5,985)
7,672
68,290
LargeCap
Growth
Account
I
199,757
(7,402)
192,355
353,531
LargeCap
S&P
500
Index
Account
1,111,663
(169,504)
942,159
1,627,798
LargeCap
S&P
500
Managed
Volatility
Index
Account
74,385
(15,142)
59,243
154,741
MidCap
Account
191,045
(17,586)
173,459
368,733
Principal
Capital
Appreciation
Account
66,983
(1,945)
65,038
78,796
Principal
LifeTime
2010
Account
3,369
(835)
2,534
30,990
Principal
LifeTime
2020
Account
21,504
(7,710)
13,794
156,135
Principal
LifeTime
2030
Account
21,688
(8,632)
13,056
176,995
Principal
LifeTime
2040
Account
10,052
(4,480)
5,572
79,271
Principal
LifeTime
2050
Account
5,167
(2,205)
2,962
36,004
Principal
LifeTime
2060
Account
736
(566)
170
8,486
Principal
LifeTime
Strategic
Income
Account
2,398
(503)
1,895
25,057
Real
Estate
Securities
Account
27,505
(10,137)
17,368
113,108
SAM
Balanced
Portfolio
105,249
(6,224)
99,025
534,790
SAM
Conservative
Balanced
Portfolio
19,865
(3,045)
16,820
160,051
SAM
Conservative
Growth
Portfolio
52,138
(5,189)
46,949
281,608
SAM
Flexible
Income
Portfolio
13,912
(3,789)
10,123
163,727
SAM
Strategic
Growth
Portfolio
34,908
(6,830)
28,078
260,949
Short-Term
Income
Account
3,700
(469)
3,231
134,952
SmallCap
Account
35,073
(30,633)
4,440
166,977
7.
Federal
Tax
Information
(continued)
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
65
INVESTMENT
COMPANIES
-
8.67%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
1.19%
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
225,000‌
$
30,263‌
Money
Market
Funds
-
7.48%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
3,520,665‌
3,521‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
185,617,759‌
185,618‌
$
189,139‌
TOTAL
INVESTMENT
COMPANIES
$
219,402‌
BONDS
-
31.26%
Principal
Amount
(000's)
Value
(000's)
Advertising
-
0.03%
Interpublic
Group
of
Cos
Inc/The
3.75%,
10/01/2021
$
300‌
$
311‌
5.40%,
10/01/2048
300‌
331‌
Omnicom
Group
Inc
2.45%,
04/30/2030
160‌
163‌
$
805‌
Aerospace
&
Defense
-
0.45%
Boeing
Co/The
2.95%,
02/01/2030
(e)
170‌
168‌
3.25%,
02/01/2035
170‌
155‌
3.75%,
02/01/2050
235‌
211‌
3.95%,
08/01/2059
315‌
276‌
4.51%,
05/01/2023
620‌
655‌
4.88%,
05/01/2025
620‌
676‌
5.04%,
05/01/2027
310‌
342‌
5.15%,
05/01/2030
310‌
346‌
5.71%,
05/01/2040
310‌
353‌
5.81%,
05/01/2050
155‌
183‌
5.88%,
02/15/2040
154‌
172‌
General
Dynamics
Corp
2.25%,
11/15/2022
15‌
16‌
3.25%,
04/01/2025
80‌
89‌
3.38%,
05/15/2023
300‌
324‌
3.50%,
04/01/2027
160‌
183‌
3.75%,
05/15/2028
300‌
350‌
4.25%,
04/01/2040
160‌
199‌
L3Harris
Technologies
Inc
2.90%,
12/15/2029
60‌
65‌
3.83%,
04/27/2025
500‌
558‌
Lockheed
Martin
Corp
1.85%,
06/15/2030
55‌
56‌
3.35%,
09/15/2021
58‌
60‌
3.55%,
01/15/2026
240‌
276‌
3.60%,
03/01/2035
350‌
420‌
3.80%,
03/01/2045
25‌
30‌
4.07%,
12/15/2042
47‌
60‌
4.09%,
09/15/2052
389‌
508‌
4.70%,
05/15/2046
25‌
34‌
Northrop
Grumman
Corp
2.55%,
10/15/2022
380‌
397‌
3.20%,
02/01/2027
500‌
554‌
3.85%,
04/15/2045
500‌
587‌
4.03%,
10/15/2047
25‌
30‌
Raytheon
Technologies
Corp
2.25%,
07/01/2030
160‌
167‌
3.50%,
03/15/2027
(f)
325‌
366‌
3.75%,
11/01/2046
30‌
34‌
4.05%,
05/04/2047
300‌
358‌
4.13%,
11/16/2028
435‌
512‌
4.15%,
05/15/2045
40‌
48‌
4.35%,
04/15/2047
(f)
40‌
48‌
4.50%,
06/01/2042
600‌
748‌
4.63%,
11/16/2048
210‌
273‌
4.88%,
10/15/2040
(f)
154‌
196‌
5.70%,
04/15/2040
51‌
70‌
6.13%,
07/15/2038
18‌
26‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Aerospace
&
Defense
(continued)
Raytheon
Technologies
Corp  
(continued)
6.70%,
08/01/2028
$
175‌
$
236‌
$
11,415‌
Agriculture
-
0.34%
Altria
Group
Inc
2.35%,
05/06/2025
160‌
168‌
2.85%,
08/09/2022
40‌
42‌
3.40%,
05/06/2030
325‌
350‌
3.88%,
09/16/2046
60‌
60‌
4.00%,
01/31/2024
350‌
385‌
4.80%,
02/14/2029
340‌
397‌
5.80%,
02/14/2039
380‌
470‌
6.20%,
02/14/2059
310‌
413‌
Archer-Daniels-Midland
Co
2.50%,
08/11/2026
850‌
924‌
BAT
Capital
Corp
2.76%,
08/15/2022
580‌
600‌
2.79%,
09/06/2024
245‌
258‌
3.46%,
09/06/2029
245‌
261‌
3.56%,
08/15/2027
550‌
593‌
4.54%,
08/15/2047
325‌
353‌
Philip
Morris
International
Inc
2.38%,
08/17/2022
30‌
31‌
2.75%,
02/25/2026
310‌
338‌
2.90%,
11/15/2021
381‌
394‌
3.25%,
11/10/2024
30‌
33‌
3.38%,
08/11/2025
375‌
418‌
4.13%,
03/04/2043
300‌
353‌
4.25%,
11/10/2044
30‌
36‌
4.38%,
11/15/2041
61‌
74‌
4.50%,
03/20/2042
400‌
485‌
4.88%,
11/15/2043
35‌
45‌
Reynolds
American
Inc
4.45%,
06/12/2025
250‌
282‌
4.85%,
09/15/2023
350‌
390‌
5.70%,
08/15/2035
25‌
31‌
5.85%,
08/15/2045
415‌
510‌
$
8,694‌
Airlines
-
0.04%
American
Airlines
2014-1
Class
A
Pass
Through
Trust
3.70%,
04/01/2028
281‌
238‌
American
Airlines
2019-1
Class
AA
Pass
Through
Trust
3.15%,
08/15/2033
167‌
154‌
Delta
Air
Lines
2020-1
Class
AA
Pass
Through
Trust
2.00%,
06/10/2028
320‌
305‌
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
149‌
136‌
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
80‌
72‌
$
905‌
Apparel
-
0.05%
NIKE
Inc
2.25%,
05/01/2023
200‌
211‌
2.40%,
03/27/2025
160‌
172‌
2.75%,
03/27/2027
160‌
176‌
3.25%,
03/27/2040
160‌
179‌
3.38%,
11/01/2046
350‌
392‌
3.63%,
05/01/2043
200‌
231‌
$
1,361‌
Automobile
Asset
Backed
Securities
-
0.17%
BMW
Vehicle
Owner
Trust
2018-A
2.51%,
06/25/2024
1,500‌
1,536‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
66
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
Nissan
Auto
Receivables
2017-B
Owner
Trust
1.75%,
10/15/2021
$
265‌
$
265‌
Toyota
Auto
Receivables
2018-A
Owner
Trust
2.35%,
05/16/2022
571‌
576‌
World
Omni
Auto
Receivables
Trust
2018-A
2.50%,
04/17/2023
414‌
420‌
World
Omni
Automobile
Lease
Securitization
Trust
2019-A
2.94%,
05/16/2022
1,500‌
1,529‌
$
4,326‌
Automobile
Manufacturers
-
0.33%
American
Honda
Finance
Corp
1.95%,
05/20/2022
155‌
159‌
1.95%,
05/10/2023
160‌
165‌
2.05%,
01/10/2023
490‌
507‌
2.15%,
09/10/2024
445‌
465‌
Daimler
Finance
North
America
LLC
8.50%,
01/18/2031
127‌
194‌
General
Motors
Co
4.88%,
10/02/2023
25‌
27‌
5.00%,
10/01/2028
400‌
425‌
5.00%,
04/01/2035
200‌
200‌
5.40%,
04/01/2048
360‌
353‌
6.75%,
04/01/2046
25‌
27‌
General
Motors
Financial
Co
Inc
3.20%,
07/06/2021
330‌
334‌
3.25%,
01/05/2023
400‌
409‌
3.45%,
01/14/2022
30‌
30‌
3.45%,
04/10/2022
325‌
331‌
3.55%,
07/08/2022
500‌
513‌
3.70%,
05/09/2023
325‌
334‌
4.30%,
07/13/2025
325‌
339‌
4.35%,
01/17/2027
30‌
31‌
4.38%,
09/25/2021
330‌
339‌
5.10%,
01/17/2024
500‌
534‌
Toyota
Motor
Corp
3.67%,
07/20/2028
200‌
232‌
Toyota
Motor
Credit
Corp
1.15%,
05/26/2022
155‌
157‌
1.35%,
08/25/2023
155‌
158‌
1.80%,
10/07/2021
400‌
406‌
1.80%,
02/13/2025
160‌
166‌
2.00%,
10/07/2024
(e)
165‌
172‌
2.25%,
10/18/2023
350‌
366‌
3.30%,
01/12/2022
77‌
80‌
3.35%,
01/08/2024
400‌
433‌
3.45%,
09/20/2023
400‌
435‌
$
8,321‌
Automobile
Parts
&
Equipment
-
0.02%
BorgWarner
Inc
3.38%,
03/15/2025
500‌
528‌
Banks
-
5.77%
Australia
&
New
Zealand
Banking
Group
Ltd/
New
York
NY
2.05%,
11/21/2022
250‌
259‌
2.63%,
05/19/2022
250‌
260‌
Banco
Santander
SA
2.75%,
05/28/2025
200‌
207‌
3.13%,
02/23/2023
600‌
625‌
3.49%,
05/28/2030
200‌
215‌
Bank
of
America
Corp
1.32%,
06/19/2026
(g)
320‌
321‌
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.46%,
10/22/2025
(g)
310‌
326‌
3
Month
USD
LIBOR
+
0.87%
2.50%,
02/13/2031
(g)
320‌
335‌
3
Month
USD
LIBOR
+
0.99%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
America
Corp  
(continued)
2.59%,
04/29/2031
(g)
$
250‌
$
265‌
United
States
Secured
Overnight
Financing
Rate
+
2.15%
2.68%,
06/19/2041
(g)
570‌
585‌
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.82%,
07/21/2023
(g)
500‌
519‌
3
Month
USD
LIBOR
+
0.93%
3.00%,
12/20/2023
(g)
1,389‌
1,459‌
3
Month
USD
LIBOR
+
0.79%
3.12%,
01/20/2023
(g)
500‌
518‌
3
Month
USD
LIBOR
+
1.16%
3.19%,
07/23/2030
(g)
335‌
370‌
3
Month
USD
LIBOR
+
1.18%
3.25%,
10/21/2027
40‌
44‌
3.30%,
01/11/2023
330‌
352‌
3.42%,
12/20/2028
(g)
1,041‌
1,159‌
3
Month
USD
LIBOR
+
1.04%
3.50%,
04/19/2026
795‌
895‌
3.59%,
07/21/2028
(g)
500‌
560‌
3
Month
USD
LIBOR
+
1.37%
3.82%,
01/20/2028
(g)
400‌
454‌
3
Month
USD
LIBOR
+
1.58%
3.86%,
07/23/2024
(g)
300‌
325‌
3
Month
USD
LIBOR
+
0.94%
3.88%,
08/01/2025
30‌
34‌
3.95%,
04/21/2025
830‌
919‌
3.97%,
02/07/2030
(g)
1,000‌
1,164‌
3
Month
USD
LIBOR
+
1.21%
4.13%,
01/22/2024
500‌
555‌
4.18%,
11/25/2027
560‌
641‌
4.20%,
08/26/2024
25‌
28‌
4.27%,
07/23/2029
(g)
360‌
425‌
3
Month
USD
LIBOR
+
1.31%
4.33%,
03/15/2050
(g)
310‌
401‌
3
Month
USD
LIBOR
+
1.52%
4.44%,
01/20/2048
(g)
30‌
39‌
3
Month
USD
LIBOR
+
1.99%
5.00%,
01/21/2044
25‌
34‌
5.70%,
01/24/2022
580‌
627‌
5.88%,
02/07/2042
228‌
340‌
7.75%,
05/14/2038
250‌
409‌
Bank
of
America
NA
6.00%,
10/15/2036
250‌
354‌
Bank
of
Montreal
1.85%,
05/01/2025
150‌
155‌
2.55%,
11/06/2022
15‌
16‌
3.30%,
02/05/2024
400‌
434‌
Bank
of
New
York
Mellon
Corp/The
1.60%,
04/24/2025
140‌
145‌
1.85%,
01/27/2023
790‌
817‌
1.95%,
08/23/2022
850‌
876‌
2.10%,
10/24/2024
775‌
817‌
Bank
of
Nova
Scotia/The
1.30%,
06/11/2025
160‌
161‌
2.00%,
11/15/2022
160‌
165‌
2.45%,
09/19/2022
30‌
31‌
2.70%,
03/07/2022
15‌
16‌
2.70%,
08/03/2026
170‌
186‌
3.40%,
02/11/2024
400‌
434‌
4.50%,
12/16/2025
500‌
568‌
Barclays
PLC
2.65%,
06/24/2031
(g)
320‌
319‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.90%
3.20%,
08/10/2021
200‌
204‌
3.68%,
01/10/2023
1,700‌
1,764‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
67
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Barclays
PLC  
(continued)
4.34%,
01/10/2028
$
1,030‌
$
1,143‌
4.38%,
01/12/2026
200‌
225‌
4.97%,
05/16/2029
(g)
210‌
246‌
3
Month
USD
LIBOR
+
1.90%
BNP
Paribas
SA
4.25%,
10/15/2024
750‌
822‌
BPCE
SA
4.00%,
04/15/2024
250‌
277‌
Canadian
Imperial
Bank
of
Commerce
0.95%,
06/23/2023
70‌
70‌
2.61%,
07/22/2023
(g)
250‌
258‌
3
Month
USD
LIBOR
+
0.79%
3.50%,
09/13/2023
500‌
545‌
Citibank
NA
3.65%,
01/23/2024
500‌
548‌
Citigroup
Inc
1.68%,
05/15/2024
(g)
160‌
163‌
United
States
Secured
Overnight
Financing
Rate
+
1.67%
2.31%,
11/04/2022
(g)
230‌
235‌
United
States
Secured
Overnight
Financing
Rate
+
0.87%
2.57%,
06/03/2031
(g)
320‌
331‌
United
States
Secured
Overnight
Financing
Rate
+
2.11%
2.67%,
01/29/2031
(g)
315‌
327‌
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.70%,
10/27/2022
900‌
940‌
2.75%,
04/25/2022
15‌
16‌
2.88%,
07/24/2023
(g)
200‌
208‌
3
Month
USD
LIBOR
+
0.95%
2.90%,
12/08/2021
1,000‌
1,030‌
2.98%,
11/05/2030
(g)
155‌
165‌
United
States
Secured
Overnight
Financing
Rate
+
1.42%
3.20%,
10/21/2026
770‌
844‌
3.50%,
05/15/2023
600‌
639‌
3.67%,
07/24/2028
(g)
1,200‌
1,338‌
3
Month
USD
LIBOR
+
1.39%
3.75%,
06/16/2024
500‌
552‌
3.89%,
01/10/2028
(g)
400‌
451‌
3
Month
USD
LIBOR
+
1.56%
4.05%,
07/30/2022
200‌
212‌
4.07%,
04/23/2029
(g)
240‌
274‌
3
Month
USD
LIBOR
+
1.19%
4.28%,
04/24/2048
(g)
330‌
409‌
3
Month
USD
LIBOR
+
1.84%
4.30%,
11/20/2026
525‌
596‌
4.40%,
06/10/2025
780‌
873‌
4.45%,
09/29/2027
20‌
23‌
4.50%,
01/14/2022
454‌
481‌
4.60%,
03/09/2026
60‌
68‌
4.65%,
07/30/2045
222‌
286‌
5.30%,
05/06/2044
25‌
33‌
5.50%,
09/13/2025
325‌
385‌
5.88%,
01/30/2042
328‌
477‌
6.63%,
06/15/2032
112‌
154‌
6.68%,
09/13/2043
30‌
46‌
8.13%,
07/15/2039
132‌
229‌
Cooperatieve
Rabobank
UA
3.88%,
02/08/2022
328‌
346‌
3.95%,
11/09/2022
300‌
317‌
5.25%,
05/24/2041
500‌
709‌
5.25%,
08/04/2045
250‌
342‌
5.75%,
12/01/2043
250‌
360‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Credit
Suisse
AG/New
York
NY
3.00%,
10/29/2021
$
250‌
$
258‌
3.63%,
09/09/2024
400‌
442‌
Credit
Suisse
Group
Funding
Guernsey
Ltd
3.75%,
03/26/2025
750‌
827‌
4.88%,
05/15/2045
500‌
667‌
Deutsche
Bank
AG/New
York
NY
4.10%,
01/13/2026
500‌
529‌
4.25%,
10/14/2021
400‌
410‌
5.00%,
02/14/2022
400‌
418‌
Discover
Bank
2.45%,
09/12/2024
320‌
335‌
2.70%,
02/06/2030
250‌
252‌
3.20%,
08/09/2021
250‌
256‌
Fifth
Third
Bancorp
2.38%,
01/28/2025
85‌
90‌
4.30%,
01/16/2024
30‌
33‌
Fifth
Third
Bank
NA
1.80%,
01/30/2023
250‌
257‌
2.88%,
10/01/2021
200‌
205‌
3.85%,
03/15/2026
700‌
785‌
Goldman
Sachs
Group
Inc/The
2.35%,
11/15/2021
780‌
785‌
2.60%,
02/07/2030
1,240‌
1,300‌
3.00%,
04/26/2022
25‌
25‌
3.63%,
02/20/2024
1,000‌
1,087‌
3.75%,
05/22/2025
30‌
33‌
3.85%,
01/26/2027
60‌
68‌
4.02%,
10/31/2038
(g)
750‌
870‌
3
Month
USD
LIBOR
+
1.37%
4.22%,
05/01/2029
(g)
415‌
483‌
3
Month
USD
LIBOR
+
1.30%
4.25%,
10/21/2025
1,280‌
1,441‌
4.41%,
04/23/2039
(g)
180‌
217‌
3
Month
USD
LIBOR
+
1.43%
4.80%,
07/08/2044
25‌
33‌
5.15%,
05/22/2045
310‌
408‌
5.25%,
07/27/2021
502‌
527‌
5.75%,
01/24/2022
228‌
246‌
6.75%,
10/01/2037
30‌
44‌
HSBC
Holdings
PLC
2.10%,
06/04/2026
(g)
320‌
323‌
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.63%,
11/07/2025
(g)
230‌
239‌
3
Month
USD
LIBOR
+
1.14%
2.65%,
01/05/2022
200‌
206‌
2.85%,
06/04/2031
(g)
200‌
204‌
United
States
Secured
Overnight
Financing
Rate
+
2.39%
3.60%,
05/25/2023
500‌
537‌
3.90%,
05/25/2026
395‌
439‌
3.95%,
05/18/2024
(g)
400‌
430‌
3
Month
USD
LIBOR
+
0.99%
3.97%,
05/22/2030
(g)
400‌
444‌
3
Month
USD
LIBOR
+
1.61%
4.00%,
03/30/2022
148‌
156‌
4.04%,
03/13/2028
(g)
500‌
553‌
3
Month
USD
LIBOR
+
1.55%
4.25%,
03/14/2024
500‌
539‌
4.29%,
09/12/2026
(g)
500‌
556‌
3
Month
USD
LIBOR
+
1.35%
4.58%,
06/19/2029
(g)
365‌
422‌
3
Month
USD
LIBOR
+
1.53%
4.95%,
03/31/2030
200‌
240‌
5.25%,
03/14/2044
300‌
379‌
6.10%,
01/14/2042
174‌
248‌
6.50%,
05/02/2036
420‌
567‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
68
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Huntington
Bancshares
Inc/OH
2.30%,
01/14/2022
$
500‌
$
513‌
2.55%,
02/04/2030
110‌
114‌
Huntington
National
Bank/The
1.80%,
02/03/2023
250‌
257‌
3.55%,
10/06/2023
400‌
437‌
Industrial
&
Commercial
Bank
of
China
Ltd/New
York
NY
2.45%,
10/20/2021
1,850‌
1,878‌
ING
Groep
NV
3.55%,
04/09/2024
400‌
436‌
JPMorgan
Chase
&
Co
1.51%,
06/01/2024
(g)
815‌
829‌
United
States
Secured
Overnight
Financing
Rate
+
1.46%
2.00%,
03/13/2026
(g)
160‌
166‌
United
States
Secured
Overnight
Financing
Rate
+
1.59%
2.08%,
04/22/2026
(g)
460‌
478‌
United
States
Secured
Overnight
Financing
Rate
+
1.85%
2.18%,
06/01/2028
(g)
815‌
844‌
United
States
Secured
Overnight
Financing
Rate
+
1.89%
2.30%,
08/15/2021
880‌
882‌
2.30%,
10/15/2025
(g)
280‌
293‌
United
States
Secured
Overnight
Financing
Rate
+
1.16%
2.52%,
04/22/2031
(g)
730‌
771‌
United
States
Secured
Overnight
Financing
Rate
+
2.04%
2.74%,
10/15/2030
(g)
260‌
279‌
United
States
Secured
Overnight
Financing
Rate
+
1.51%
2.78%,
04/25/2023
(g)
250‌
259‌
3
Month
USD
LIBOR
+
0.94%
2.96%,
05/13/2031
(g)
725‌
769‌
United
States
Secured
Overnight
Financing
Rate
+
2.52%
3.11%,
04/22/2041
(g)
730‌
788‌
United
States
Secured
Overnight
Financing
Rate
+
2.46%
3.11%,
04/22/2051
(g)
730‌
786‌
United
States
Secured
Overnight
Financing
Rate
+
2.44%
3.25%,
09/23/2022
320‌
338‌
3.30%,
04/01/2026
500‌
559‌
3.38%,
05/01/2023
400‌
428‌
3.51%,
01/23/2029
(g)
400‌
447‌
3
Month
USD
LIBOR
+
0.95%
3.63%,
12/01/2027
25‌
28‌
3.80%,
07/23/2024
(g)
270‌
293‌
3
Month
USD
LIBOR
+
0.89%
3.88%,
02/01/2024
20‌
22‌
3.88%,
09/10/2024
500‌
554‌
3.88%,
07/24/2038
(g)
500‌
587‌
3
Month
USD
LIBOR
+
1.36%
3.96%,
11/15/2048
(g)
400‌
489‌
3
Month
USD
LIBOR
+
1.38%
4.01%,
04/23/2029
(g)
270‌
312‌
3
Month
USD
LIBOR
+
1.12%
4.03%,
07/24/2048
(g)
30‌
36‌
3
Month
USD
LIBOR
+
1.46%
4.20%,
07/23/2029
(g)
300‌
352‌
3
Month
USD
LIBOR
+
1.26%
4.25%,
10/01/2027
10‌
12‌
4.50%,
01/24/2022
257‌
273‌
4.85%,
02/01/2044
20‌
27‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co  
(continued)
4.95%,
06/01/2045
$
55‌
$
74‌
5.40%,
01/06/2042
102‌
144‌
5.60%,
07/15/2041
154‌
222‌
5.63%,
08/16/2043
375‌
545‌
6.40%,
05/15/2038
200‌
308‌
KeyBank
NA/Cleveland
OH
1.25%,
03/10/2023
250‌
254‌
KeyCorp
2.25%,
04/06/2027
410‌
430‌
2.55%,
10/01/2029
310‌
321‌
Korea
Development
Bank/The
1.75%,
02/18/2025
500‌
516‌
Kreditanstalt
fuer
Wiederaufbau
0.00%,
04/18/2036
(d)
380‌
306‌
0.00%,
06/29/2037
(d)
200‌
158‌
2.00%,
05/02/2025
880‌
945‌
2.13%,
03/07/2022
500‌
516‌
2.13%,
06/15/2022
960‌
995‌
2.13%,
01/17/2023
1,800‌
1,884‌
2.38%,
12/29/2022
600‌
631‌
2.50%,
11/20/2024
300‌
327‌
2.63%,
01/25/2022
1,257‌
1,303‌
Landwirtschaftliche
Rentenbank
2.00%,
01/13/2025
300‌
321‌
2.38%,
06/10/2025
1,200‌
1,309‌
Lloyds
Banking
Group
PLC
3.57%,
11/07/2028
(g)
630‌
685‌
3
Month
USD
LIBOR
+
1.21%
3.75%,
01/11/2027
515‌
570‌
4.05%,
08/16/2023
400‌
435‌
4.45%,
05/08/2025
400‌
452‌
4.65%,
03/24/2026
500‌
556‌
5.30%,
12/01/2045
200‌
263‌
Mitsubishi
UFJ
Financial
Group
Inc
2.19%,
02/25/2025
200‌
207‌
2.56%,
02/25/2030
200‌
209‌
2.62%,
07/18/2022
700‌
727‌
2.76%,
09/13/2026
400‌
428‌
2.80%,
07/18/2024
650‌
696‌
3.20%,
07/18/2029
700‌
765‌
3.54%,
07/26/2021
300‌
310‌
3.75%,
07/18/2039
550‌
626‌
3.76%,
07/26/2023
300‌
325‌
3.85%,
03/01/2026
350‌
398‌
Mizuho
Financial
Group
Inc
2.23%,
05/25/2026
(g)
200‌
205‌
3
Month
USD
LIBOR
+
0.83%
2.27%,
09/13/2021
400‌
408‌
2.72%,
07/16/2023
(g)
600‌
620‌
3
Month
USD
LIBOR
+
0.84%
2.84%,
07/16/2025
(g)
1,000‌
1,049‌
3
Month
USD
LIBOR
+
0.98%
3.15%,
07/16/2030
(g)
400‌
434‌
3
Month
USD
LIBOR
+
1.13%
Morgan
Stanley
2.19%,
04/28/2026
(g)
475‌
495‌
United
States
Secured
Overnight
Financing
Rate
+
1.99%
2.63%,
11/17/2021
1,030‌
1,059‌
2.72%,
07/22/2025
(g)
250‌
265‌
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.75%,
05/19/2022
300‌
312‌
3.13%,
01/23/2023
300‌
318‌
3.13%,
07/27/2026
1,330‌
1,466‌
3.59%,
07/22/2028
(g)
30‌
34‌
3
Month
USD
LIBOR
+
1.34%
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
69
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Morgan
Stanley  
(continued)
3.63%,
01/20/2027
$
30‌
$
34‌
3.70%,
10/23/2024
25‌
28‌
3.75%,
02/25/2023
1,230‌
1,327‌
3.77%,
01/24/2029
(g)
360‌
410‌
3
Month
USD
LIBOR
+
1.14%
3.88%,
04/29/2024
30‌
33‌
3.95%,
04/23/2027
50‌
56‌
3.97%,
07/22/2038
(g)
15‌
18‌
3
Month
USD
LIBOR
+
1.46%
4.00%,
07/23/2025
30‌
34‌
4.10%,
05/22/2023
380‌
411‌
4.30%,
01/27/2045
50‌
63‌
4.35%,
09/08/2026
30‌
35‌
4.38%,
01/22/2047
30‌
39‌
4.88%,
11/01/2022
30‌
33‌
5.00%,
11/24/2025
525‌
613‌
6.38%,
07/24/2042
620‌
967‌
National
Australia
Bank
Ltd/New
York
1.88%,
07/12/2021
500‌
508‌
1.88%,
12/13/2022
250‌
258‌
2.50%,
05/22/2022
570‌
591‌
Northern
Trust
Corp
3.95%,
10/30/2025
500‌
577‌
Oesterreichische
Kontrollbank
AG
2.88%,
03/13/2023
1,000‌
1,068‌
PNC
Bank
NA
1.74%,
02/24/2023
(g)
250‌
254‌
3
Month
USD
LIBOR
+
0.00%
2.23%,
07/22/2022
(g)
1,500‌
1,526‌
3
Month
USD
LIBOR
+
0.44%
2.70%,
10/22/2029
250‌
267‌
3.80%,
07/25/2023
400‌
435‌
PNC
Financial
Services
Group
Inc/The
2.20%,
11/01/2024
130‌
138‌
2.55%,
01/22/2030
160‌
173‌
2.60%,
07/23/2026
140‌
152‌
3.45%,
04/23/2029
300‌
345‌
Regions
Financial
Corp
3.80%,
08/14/2023
1,000‌
1,087‌
Royal
Bank
of
Canada
1.95%,
01/17/2023
720‌
742‌
2.25%,
11/01/2024
310‌
326‌
2.55%,
07/16/2024
125‌
133‌
Royal
Bank
of
Scotland
Group
PLC
3.88%,
09/12/2023
200‌
216‌
4.80%,
04/05/2026
500‌
578‌
4.89%,
05/18/2029
(g)
400‌
471‌
3
Month
USD
LIBOR
+
1.75%
5.08%,
01/27/2030
(g)
1,000‌
1,202‌
3
Month
USD
LIBOR
+
1.91%
Santander
Holdings
USA
Inc
4.50%,
07/17/2025
780‌
843‌
Santander
UK
Group
Holdings
PLC
3.57%,
01/10/2023
520‌
540‌
Santander
UK
PLC
2.10%,
01/13/2023
475‌
491‌
Skandinaviska
Enskilda
Banken
AB
1.88%,
09/13/2021
500‌
508‌
State
Street
Corp
2.35%,
11/01/2025
(g)
365‌
387‌
United
States
Secured
Overnight
Financing
Rate
+
0.94%
2.40%,
01/24/2030
160‌
172‌
2.65%,
05/19/2026
60‌
66‌
3.10%,
05/15/2023
325‌
349‌
3.55%,
08/18/2025
225‌
256‌
3.70%,
11/20/2023
10‌
11‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Sumitomo
Mitsui
Financial
Group
Inc
1.47%,
07/08/2025
(h)
$
300‌
$
300‌
2.13%,
07/08/2030
(h)
930‌
932‌
2.35%,
01/15/2025
200‌
209‌
2.70%,
07/16/2024
420‌
445‌
2.75%,
01/15/2030
200‌
212‌
3.04%,
07/16/2029
200‌
215‌
3.36%,
07/12/2027
750‌
828‌
3.45%,
01/11/2027
140‌
155‌
3.78%,
03/09/2026
500‌
565‌
Toronto-Dominion
Bank/The
0.75%,
06/12/2023
330‌
332‌
1.15%,
06/12/2025
330‌
334‌
1.80%,
07/13/2021
520‌
528‌
1.90%,
12/01/2022
115‌
119‌
Truist
Bank
1.25%,
03/09/2023
250‌
254‌
1.50%,
03/10/2025
250‌
257‌
3.63%,
09/16/2025
250‌
279‌
3.80%,
10/30/2026
250‌
283‌
Truist
Financial
Corp
1.20%,
08/05/2025
665‌
673‌
1.95%,
06/05/2030
665‌
676‌
2.50%,
08/01/2024
350‌
372‌
2.70%,
01/27/2022
30‌
31‌
US
Bancorp
2.40%,
07/30/2024
190‌
202‌
2.63%,
01/24/2022
55‌
57‌
2.95%,
07/15/2022
230‌
241‌
3.00%,
03/15/2022
158‌
165‌
3.00%,
07/30/2029
950‌
1,033‌
3.15%,
04/27/2027
25‌
28‌
US
Bank
NA/Cincinnati
OH
2.05%,
01/21/2025
300‌
317‌
Wells
Fargo
&
Co
1.65%,
06/02/2024
(g)
820‌
833‌
United
States
Secured
Overnight
Financing
Rate
+
1.60%
2.10%,
07/26/2021
15‌
15‌
2.16%,
02/11/2026
(g)
645‌
665‌
3
Month
USD
LIBOR
+
0.75%
2.19%,
04/30/2026
(g)
480‌
496‌
United
States
Secured
Overnight
Financing
Rate
+
2.00%
2.39%,
06/02/2028
(g)
820‌
847‌
United
States
Secured
Overnight
Financing
Rate
+
2.10%
2.41%,
10/30/2025
(g)
1,310‌
1,364‌
3
Month
USD
LIBOR
+
0.83%
3.00%,
04/22/2026
500‌
546‌
3.00%,
10/23/2026
530‌
578‌
3.07%,
01/24/2023
35‌
36‌
3.07%,
04/30/2041
(g)
480‌
501‌
United
States
Secured
Overnight
Financing
Rate
+
2.53%
3.45%,
02/13/2023
215‌
228‌
3.50%,
03/08/2022
180‌
189‌
3.58%,
05/22/2028
(g)
500‌
555‌
3
Month
USD
LIBOR
+
1.31%
4.10%,
06/03/2026
600‌
677‌
4.40%,
06/14/2046
385‌
459‌
4.48%,
04/04/2031
(g)
245‌
296‌
3
Month
USD
LIBOR
+
3.77%
4.65%,
11/04/2044
30‌
37‌
4.90%,
11/17/2045
520‌
667‌
5.01%,
04/04/2051
(g)
325‌
451‌
3
Month
USD
LIBOR
+
4.24%
5.38%,
02/07/2035
500‌
678‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
70
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Wells
Fargo
&
Co  
(continued)
5.38%,
11/02/2043
$
20‌
$
27‌
5.61%,
01/15/2044
45‌
62‌
5.95%,
12/01/2086
200‌
241‌
Wells
Fargo
Bank
NA
5.95%,
08/26/2036
750‌
1,015‌
6.60%,
01/15/2038
250‌
368‌
Westpac
Banking
Corp
2.00%,
08/19/2021
500‌
509‌
2.00%,
01/13/2023
1,155‌
1,196‌
2.35%,
02/19/2025
155‌
165‌
2.65%,
01/16/2030
155‌
170‌
2.80%,
01/11/2022
500‌
518‌
2.89%,
02/04/2030
(g)
160‌
163‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.35%
4.11%,
07/24/2034
(g)
165‌
182‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
165‌
195‌
$
146,041‌
Beverages
-
0.65%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
825‌
926‌
4.70%,
02/01/2036
1,030‌
1,213‌
4.90%,
02/01/2046
490‌
600‌
Anheuser-Busch
InBev
Finance
Inc
4.63%,
02/01/2044
25‌
29‌
Anheuser-Busch
InBev
Worldwide
Inc
2.50%,
07/15/2022
91‌
95‌
3.50%,
06/01/2030
295‌
332‌
3.75%,
07/15/2042
100‌
107‌
4.35%,
06/01/2040
295‌
336‌
4.50%,
06/01/2050
720‌
854‌
4.75%,
01/23/2029
560‌
677‌
4.90%,
01/23/2031
750‌
940‌
5.45%,
01/23/2039
500‌
632‌
5.80%,
01/23/2059
595‌
847‌
8.20%,
01/15/2039
51‌
80‌
Coca-Cola
Co/The
1.45%,
06/01/2027
260‌
267‌
1.65%,
06/01/2030
260‌
265‌
1.75%,
09/06/2024
190‌
199‌
2.13%,
09/06/2029
165‌
176‌
2.50%,
06/01/2040
260‌
269‌
2.60%,
06/01/2050
260‌
262‌
2.95%,
03/25/2025
325‌
358‌
3.38%,
03/25/2027
160‌
183‌
Constellation
Brands
Inc
3.15%,
08/01/2029
630‌
676‌
Diageo
Capital
PLC
2.13%,
10/24/2024
200‌
210‌
2.13%,
04/29/2032
200‌
207‌
2.38%,
10/24/2029
200‌
213‌
2.63%,
04/29/2023
10‌
11‌
5.88%,
09/30/2036
139‌
199‌
Diageo
Investment
Corp
2.88%,
05/11/2022
200‌
209‌
Fomento
Economico
Mexicano
SAB
de
CV
3.50%,
01/16/2050
160‌
165‌
Keurig
Dr
Pepper
Inc
3.13%,
12/15/2023
500‌
537‌
4.06%,
05/25/2023
425‌
463‌
Molson
Coors
Beverage
Co
3.00%,
07/15/2026
530‌
551‌
5.00%,
05/01/2042
50‌
53‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
PepsiCo
Inc
0.75%,
05/01/2023
$
95‌
$
96‌
1.63%,
05/01/2030
95‌
97‌
2.38%,
10/06/2026
670‌
732‌
2.63%,
07/29/2029
170‌
188‌
2.75%,
03/05/2022
593‌
618‌
2.85%,
02/24/2026
500‌
552‌
2.88%,
10/15/2049
160‌
173‌
3.10%,
07/17/2022
15‌
16‌
3.38%,
07/29/2049
705‌
809‌
$
16,422‌
Biotechnology
-
0.28%
Amgen
Inc
1.90%,
02/21/2025
160‌
167‌
2.20%,
02/21/2027
1,090‌
1,149‌
2.45%,
02/21/2030
160‌
169‌
2.60%,
08/19/2026
500‌
545‌
2.65%,
05/11/2022
40‌
41‌
3.15%,
02/21/2040
860‌
924‌
3.38%,
02/21/2050
160‌
178‌
3.88%,
11/15/2021
21‌
22‌
4.40%,
05/01/2045
40‌
50‌
Baxalta
Inc
4.00%,
06/23/2025
50‌
57‌
5.25%,
06/23/2045
130‌
174‌
Biogen
Inc
2.25%,
05/01/2030
115‌
116‌
5.20%,
09/15/2045
540‌
708‌
Gilead
Sciences
Inc
2.95%,
03/01/2027
530‌
591‌
3.25%,
09/01/2022
60‌
63‌
4.00%,
09/01/2036
300‌
375‌
4.15%,
03/01/2047
70‌
89‌
4.40%,
12/01/2021
127‌
133‌
4.60%,
09/01/2035
500‌
656‌
4.75%,
03/01/2046
195‌
264‌
4.80%,
04/01/2044
500‌
676‌
$
7,147‌
Building
Materials
-
0.09%
Carrier
Global
Corp
1.92%,
02/15/2023
(f)
160‌
163‌
2.24%,
02/15/2025
(f)
160‌
164‌
2.49%,
02/15/2027
(f)
160‌
163‌
2.72%,
02/15/2030
(f)
320‌
321‌
3.38%,
04/05/2040
(f)
160‌
156‌
3.58%,
04/05/2050
(f)
160‌
158‌
Martin
Marietta
Materials
Inc
2.50%,
03/15/2030
160‌
161‌
Masco
Corp
4.45%,
04/01/2025
300‌
340‌
Owens
Corning
4.40%,
01/30/2048
300‌
312‌
Vulcan
Materials
Co
3.50%,
06/01/2030
295‌
321‌
$
2,259‌
Chemicals
-
0.30%
Air
Products
and
Chemicals
Inc
1.85%,
05/15/2027
80‌
84‌
2.80%,
05/15/2050
155‌
163‌
Albemarle
Corp
5.45%,
12/01/2044
150‌
158‌
Dow
Chemical
Co/The
3.50%,
10/01/2024
5‌
5‌
3.63%,
05/15/2026
300‌
330‌
4.38%,
11/15/2042
230‌
257‌
4.80%,
05/15/2049
300‌
356‌
5.25%,
11/15/2041
30‌
36‌
9.40%,
05/15/2039
51‌
85‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
71
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Chemicals
(continued)
DuPont
de
Nemours
Inc
2.17%,
05/01/2023
$
875‌
$
892‌
5.42%,
11/15/2048
245‌
323‌
Eastman
Chemical
Co
4.80%,
09/01/2042
100‌
116‌
Ecolab
Inc
4.35%,
12/08/2021
112‌
118‌
4.80%,
03/24/2030
160‌
203‌
5.50%,
12/08/2041
307‌
434‌
LYB
International
Finance
II
BV
3.50%,
03/02/2027
35‌
38‌
LYB
International
Finance
III
LLC
4.20%,
10/15/2049
125‌
135‌
LyondellBasell
Industries
NV
4.63%,
02/26/2055
20‌
22‌
5.75%,
04/15/2024
130‌
150‌
Mosaic
Co/The
4.25%,
11/15/2023
496‌
521‌
Nutrien
Ltd
1.90%,
05/13/2023
95‌
98‌
4.20%,
04/01/2029
600‌
696‌
4.90%,
06/01/2043
200‌
237‌
6.13%,
01/15/2041
250‌
321‌
Praxair
Inc
2.20%,
08/15/2022
300‌
310‌
Sherwin-Williams
Co/The
2.30%,
05/15/2030
160‌
163‌
2.95%,
08/15/2029
450‌
484‌
3.30%,
05/15/2050
160‌
162‌
3.80%,
08/15/2049
175‌
191‌
Westlake
Chemical
Corp
3.60%,
08/15/2026
350‌
370‌
$
7,458‌
Commercial
Mortgage
Backed
Securities
-
1.82%
BANK
2018-BNK10
3.69%,
02/15/2061
1,850‌
2,098‌
CFCRE
Commercial
Mortgage
Trust
2016-C4
3.28%,
05/10/2058
1,300‌
1,401‌
Citigroup
Commercial
Mortgage
Trust
2016-GC36
3.62%,
02/10/2049
1,000‌
1,102‌
COMM
2013-CCRE8
Mortgage
Trust
3.61%,
06/10/2046
(i)
500‌
530‌
COMM
2014-UBS3
Mortgage
Trust
3.82%,
06/10/2047
500‌
539‌
COMM
2015-DC1
Mortgage
Trust
3.35%,
02/10/2048
1,000‌
1,078‌
COMM
2015-LC19
Mortgage
Trust
3.18%,
02/10/2048
1,000‌
1,073‌
COMM
2016-CR28
Mortgage
Trust
3.76%,
02/10/2049
1,000‌
1,114‌
CSAIL
2016-C7
Commercial
Mortgage
Trust
3.31%,
11/15/2049
1,000‌
1,051‌
Fannie
Mae-Aces
2.50%,
10/25/2026
(i)
1,000‌
1,079‌
2.53%,
09/25/2024
1,000‌
1,066‌
2.71%,
04/25/2023
(i)
140‌
145‌
2.80%,
06/25/2025
(i)
2,000‌
2,160‌
2.89%,
02/25/2027
(i)
1,100‌
1,206‌
2.96%,
02/25/2027
(i)
1,000‌
1,108‌
3.08%,
12/25/2027
(i)
1,000‌
1,121‌
3.22%,
08/25/2024
(i)
900‌
969‌
3.50%,
07/25/2028
(i)
2,025‌
2,330‌
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.67%,
03/25/2026
1,050‌
1,148‌
2.87%,
12/25/2021
488‌
500‌
3.02%,
02/25/2023
160‌
166‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates  
(continued)
3.06%,
07/25/2023
(i)
$
750‌
$
801‌
3.06%,
12/25/2024
500‌
550‌
3.31%,
05/25/2023
(i)
810‌
869‌
3.32%,
02/25/2023
1,000‌
1,063‌
3.41%,
12/25/2026
1,500‌
1,720‌
3.53%,
10/25/2023
(i)
1,050‌
1,142‌
GS
Mortgage
Securities
Trust
2012-GC6
3.48%,
01/10/2045
273‌
279‌
GS
Mortgage
Securities
Trust
2012-GCJ9
2.77%,
11/10/2045
489‌
497‌
GS
Mortgage
Securities
Trust
2014-GC18
3.80%,
01/10/2047
454‌
483‌
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
1,000‌
1,092‌
GS
Mortgage
Securities
Trust
2017-GS5
3.47%,
03/10/2050
2,250‌
2,418‌
GS
Mortgage
Securities
Trust
2018-GS9
3.99%,
03/10/2051
(i)
1,500‌
1,712‌
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C22
3.80%,
09/15/2047
1,000‌
1,087‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C24
3.48%,
05/15/2048
1,000‌
1,084‌
Morgan
Stanley
Capital
I
Trust
2017-H1
3.26%,
06/15/2050
2,500‌
2,734‌
SG
Commercial
Mortgage
Securities
Trust
2016-C5
3.06%,
10/10/2048
1,000‌
1,054‌
UBS
Commercial
Mortgage
Trust
2012-C1
3.40%,
05/10/2045
452‌
465‌
UBS-Barclays
Commercial
Mortgage
Trust
2012-C3
3.09%,
08/10/2049
542‌
558‌
UBS-Barclays
Commercial
Mortgage
Trust
2013-C6
3.24%,
04/10/2046
500‌
519‌
Wells
Fargo
Commercial
Mortgage
Trust
2012-LC5
2.92%,
10/15/2045
441‌
454‌
Wells
Fargo
Commercial
Mortgage
Trust
2015-C28
3.29%,
05/15/2048
1,664‌
1,764‌
WFRBS
Commercial
Mortgage
Trust
2013-C14
2.98%,
06/15/2046
652‌
664‌
$
45,993‌
Commercial
Services
-
0.25%
Automatic
Data
Processing
Inc
3.38%,
09/15/2025
500‌
561‌
California
Institute
of
Technology
4.32%,
08/01/2045
80‌
103‌
Global
Payments
Inc
2.65%,
02/15/2025
170‌
180‌
3.20%,
08/15/2029
170‌
182‌
4.15%,
08/15/2049
85‌
98‌
IHS
Markit
Ltd
3.63%,
05/01/2024
372‌
399‌
Leland
Stanford
Junior
University/The
3.65%,
05/01/2048
287‌
366‌
Massachusetts
Institute
of
Technology
3.89%,
07/01/2116
250‌
311‌
4.68%,
07/01/2114
250‌
365‌
PayPal
Holdings
Inc
1.35%,
06/01/2023
160‌
163‌
1.65%,
06/01/2025
160‌
165‌
2.20%,
09/26/2022
160‌
166‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
72
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
(continued)
PayPal
Holdings
Inc  
(continued)
2.30%,
06/01/2030
$
160‌
$
167‌
2.40%,
10/01/2024
160‌
170‌
2.85%,
10/01/2029
160‌
174‌
President
and
Fellows
of
Harvard
College
3.15%,
07/15/2046
350‌
403‌
S&P
Global
Inc
2.50%,
12/01/2029
120‌
130‌
3.25%,
12/01/2049
120‌
132‌
4.40%,
02/15/2026
160‌
188‌
University
of
Southern
California
2.81%,
10/01/2050
645‌
691‌
5.25%,
10/01/2111
30‌
47‌
Verisk
Analytics
Inc
4.00%,
06/15/2025
500‌
565‌
William
Marsh
Rice
University
3.57%,
05/15/2045
500‌
606‌
$
6,332‌
Computers
-
0.61%
Apple
Inc
0.75%,
05/11/2023
435‌
440‌
1.13%,
05/11/2025
550‌
562‌
1.55%,
08/04/2021
30‌
30‌
1.65%,
05/11/2030
160‌
163‌
1.70%,
09/11/2022
195‌
201‌
2.15%,
02/09/2022
50‌
51‌
2.20%,
09/11/2029
165‌
177‌
2.40%,
01/13/2023
300‌
316‌
2.40%,
05/03/2023
330‌
349‌
2.50%,
02/09/2022
530‌
548‌
2.65%,
05/11/2050
160‌
168‌
2.85%,
02/23/2023
30‌
32‌
2.90%,
09/12/2027
230‌
258‌
2.95%,
09/11/2049
165‌
180‌
3.20%,
05/13/2025
445‌
496‌
3.20%,
05/11/2027
320‌
363‌
3.35%,
02/09/2027
535‌
609‌
3.45%,
02/09/2045
30‌
35‌
3.75%,
09/12/2047
115‌
138‌
3.75%,
11/13/2047
150‌
183‌
3.85%,
05/04/2043
300‌
371‌
4.65%,
02/23/2046
1,235‌
1,701‌
Dell
International
LLC
/
EMC
Corp
6.02%,
06/15/2026
(f)
1,000‌
1,146‌
8.10%,
07/15/2036
(f)
255‌
336‌
8.35%,
07/15/2046
(f)
335‌
447‌
DXC
Technology
Co
4.75%,
04/15/2027
505‌
554‌
Hewlett
Packard
Enterprise
Co
2.25%,
04/01/2023
165‌
170‌
4.45%,
10/02/2023
150‌
164‌
4.90%,
10/15/2025
300‌
346‌
6.20%,
10/15/2035
80‌
98‌
6.35%,
10/15/2045
195‌
239‌
HP
Inc
2.20%,
06/17/2025
240‌
248‌
3.00%,
06/17/2027
240‌
252‌
6.00%,
09/15/2041
154‌
181‌
International
Business
Machines
Corp
2.85%,
05/13/2022
400‌
418‌
3.30%,
05/15/2026
400‌
449‌
3.38%,
08/01/2023
335‌
363‌
3.50%,
05/15/2029
470‌
542‌
4.00%,
06/20/2042
35‌
42‌
4.15%,
05/15/2039
230‌
278‌
4.25%,
05/15/2049
340‌
433‌
4.70%,
02/19/2046
185‌
244‌
5.60%,
11/30/2039
92‌
130‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Computers
(continued)
International
Business
Machines
Corp  
(continued)
5.88%,
11/29/2032
$
200‌
$
283‌
6.22%,
08/01/2027
351‌
462‌
NetApp
Inc
2.38%,
06/22/2027
160‌
162‌
$
15,358‌
Consumer
Products
-
0.07%
Church
&
Dwight
Co
Inc
3.15%,
08/01/2027
300‌
331‌
3.95%,
08/01/2047
300‌
341‌
Clorox
Co/The
1.80%,
05/15/2030
160‌
161‌
3.80%,
11/15/2021
128‌
133‌
Kimberly-Clark
Corp
2.40%,
03/01/2022
257‌
265‌
2.75%,
02/15/2026
400‌
438‌
2.88%,
02/07/2050
160‌
174‌
$
1,843‌
Cosmetics
&
Personal
Care
-
0.12%
Estee
Lauder
Cos
Inc/The
2.00%,
12/01/2024
240‌
253‌
2.38%,
12/01/2029
240‌
257‌
Procter
&
Gamble
Co/The
1.70%,
11/03/2021
30‌
31‌
2.30%,
02/06/2022
441‌
455‌
2.80%,
03/25/2027
660‌
734‌
3.10%,
08/15/2023
30‌
33‌
3.55%,
03/25/2040
160‌
192‌
Unilever
Capital
Corp
2.13%,
09/06/2029
115‌
121‌
2.20%,
05/05/2022
100‌
103‌
2.60%,
05/05/2024
510‌
546‌
5.90%,
11/15/2032
230‌
333‌
$
3,058‌
Credit
Card
Asset
Backed
Securities
-
0.18%
Capital
One
Multi-Asset
Execution
Trust
1.99%,
07/17/2023
1,000‌
1,003‌
2.43%,
01/15/2025
1,500‌
1,552‌
Citibank
Credit
Card
Issuance
Trust
2.19%,
11/20/2023
1,000‌
1,025‌
2.88%,
01/23/2023
500‌
507‌
Synchrony
Credit
Card
Master
Note
Trust
2.97%,
03/15/2024
500‌
507‌
$
4,594‌
Distribution
&
Wholesale
-
0.01%
WW
Grainger
Inc
4.60%,
06/15/2045
250‌
315‌
Diversified
Financial
Services
-
0.72%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
2.88%,
08/14/2024
1,035‌
972‌
3.88%,
01/23/2028
300‌
271‌
3.95%,
02/01/2022
650‌
650‌
5.00%,
10/01/2021
150‌
152‌
Air
Lease
Corp
2.25%,
01/15/2023
130‌
129‌
2.30%,
02/01/2025
265‌
254‌
3.25%,
03/01/2025
500‌
501‌
3.25%,
10/01/2029
95‌
90‌
Ally
Financial
Inc
8.00%,
11/01/2031
540‌
697‌
American
Express
Co
2.65%,
12/02/2022
400‌
419‌
4.05%,
12/03/2042
25‌
30‌
American
Express
Credit
Corp
3.30%,
05/03/2027
30‌
34‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
73
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Ameriprise
Financial
Inc
4.00%,
10/15/2023
$
225‌
$
249‌
BlackRock
Inc
2.40%,
04/30/2030
125‌
135‌
3.38%,
06/01/2022
200‌
211‌
3.50%,
03/18/2024
500‌
554‌
Brookfield
Finance
Inc
3.90%,
01/25/2028
400‌
439‌
Brookfield
Finance
LLC
3.45%,
04/15/2050
160‌
153‌
Capital
One
Bank
USA
NA
3.38%,
02/15/2023
340‌
358‌
Capital
One
Financial
Corp
3.20%,
02/05/2025
415‌
446‌
3.50%,
06/15/2023
114‌
122‌
3.75%,
04/24/2024
5‌
5‌
4.20%,
10/29/2025
30‌
33‌
4.75%,
07/15/2021
30‌
31‌
Charles
Schwab
Corp/The
3.45%,
02/13/2026
250‌
281‌
CME
Group
Inc
3.00%,
09/15/2022
25‌
26‌
3.00%,
03/15/2025
530‌
585‌
5.30%,
09/15/2043
200‌
293‌
Credit
Suisse
USA
Inc
7.13%,
07/15/2032
300‌
453‌
Discover
Financial
Services
4.10%,
02/09/2027
500‌
547‌
GE
Capital
Funding
LLC
3.45%,
05/15/2025
(f)
200‌
210‌
4.05%,
05/15/2027
(f)
200‌
211‌
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
2,000‌
2,034‌
Intercontinental
Exchange
Inc
2.10%,
06/15/2030
160‌
164‌
3.75%,
12/01/2025
50‌
53‌
4.00%,
10/15/2023
550‌
610‌
4.25%,
09/21/2048
150‌
190‌
Jefferies
Group
LLC
6.50%,
01/20/2043
200‌
232‌
Jefferies
Group
LLC
/
Jefferies
Group
Capital
Finance
Inc
4.15%,
01/23/2030
400‌
431‌
Mastercard
Inc
2.00%,
03/03/2025
210‌
223‌
2.95%,
11/21/2026
500‌
562‌
3.35%,
03/26/2030
80‌
93‌
3.85%,
03/26/2050
160‌
199‌
Nasdaq
Inc
4.25%,
06/01/2024
350‌
387‌
ORIX
Corp
3.70%,
07/18/2027
300‌
334‌
Synchrony
Financial
4.25%,
08/15/2024
800‌
840‌
4.50%,
07/23/2025
20‌
21‌
Visa
Inc
1.90%,
04/15/2027
75‌
78‌
2.05%,
04/15/2030
155‌
162‌
2.70%,
04/15/2040
155‌
166‌
2.80%,
12/14/2022
20‌
21‌
3.15%,
12/14/2025
600‌
668‌
3.65%,
09/15/2047
85‌
103‌
4.15%,
12/14/2035
215‌
275‌
4.30%,
12/14/2045
375‌
495‌
Western
Union
Co/The
6.20%,
11/17/2036
200‌
227‌
$
18,109‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
-
1.72%
AEP
Texas
Inc
2.10%,
07/01/2030
(h)
$
165‌
$
165‌
3.45%,
01/15/2050
55‌
59‌
AEP
Transmission
Co
LLC
4.00%,
12/01/2046
600‌
720‌
Alabama
Power
Co
4.30%,
01/02/2046
400‌
490‌
Ameren
Illinois
Co
2.70%,
09/01/2022
300‌
312‌
3.25%,
03/15/2050
80‌
88‌
American
Electric
Power
Co
Inc
2.30%,
03/01/2030
160‌
161‌
Appalachian
Power
Co
3.30%,
06/01/2027
400‌
432‌
7.00%,
04/01/2038
120‌
179‌
Arizona
Public
Service
Co
4.50%,
04/01/2042
77‌
94‌
Berkshire
Hathaway
Energy
Co
3.80%,
07/15/2048
300‌
349‌
4.50%,
02/01/2045
250‌
316‌
5.15%,
11/15/2043
15‌
20‌
6.13%,
04/01/2036
156‌
225‌
CenterPoint
Energy
Houston
Electric
LLC
4.25%,
02/01/2049
300‌
381‌
CenterPoint
Energy
Inc
2.50%,
09/01/2024
90‌
95‌
2.95%,
03/01/2030
125‌
133‌
3.70%,
09/01/2049
90‌
97‌
CMS
Energy
Corp
3.45%,
08/15/2027
350‌
384‌
Commonwealth
Edison
Co
3.00%,
03/01/2050
160‌
169‌
4.00%,
03/01/2049
300‌
372‌
Connecticut
Light
and
Power
Co/The
3.20%,
03/15/2027
165‌
182‌
4.00%,
04/01/2048
500‌
610‌
Consolidated
Edison
Co
of
New
York
Inc
3.13%,
11/15/2027
300‌
334‌
3.70%,
11/15/2059
80‌
89‌
4.13%,
05/15/2049
300‌
365‌
4.20%,
03/15/2042
128‌
154‌
4.30%,
12/01/2056
230‌
275‌
5.85%,
03/15/2036
51‌
69‌
6.75%,
04/01/2038
125‌
185‌
Consumers
Energy
Co
2.50%,
05/01/2060
160‌
154‌
3.10%,
08/15/2050
245‌
273‌
Delmarva
Power
&
Light
Co
4.15%,
05/15/2045
350‌
423‌
Dominion
Energy
Inc
3.38%,
04/01/2030
155‌
171‌
4.70%,
12/01/2044
300‌
370‌
4.90%,
08/01/2041
77‌
96‌
5.95%,
06/15/2035
400‌
527‌
Dominion
Energy
South
Carolina
Inc
5.45%,
02/01/2041
77‌
107‌
DTE
Electric
Co
2.25%,
03/01/2030
160‌
168‌
2.63%,
03/01/2031
155‌
168‌
3.95%,
03/01/2049
500‌
608‌
DTE
Energy
Co
2.25%,
11/01/2022
155‌
160‌
Duke
Energy
Carolinas
LLC
2.45%,
08/15/2029
225‌
242‌
2.50%,
03/15/2023
279‌
291‌
3.20%,
08/15/2049
450‌
502‌
4.00%,
09/30/2042
100‌
120‌
5.30%,
02/15/2040
512‌
709‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
74
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Duke
Energy
Corp
1.80%,
09/01/2021
$
45‌
$
46‌
3.15%,
08/15/2027
15‌
17‌
3.75%,
09/01/2046
600‌
680‌
Duke
Energy
Florida
LLC
1.75%,
06/15/2030
160‌
162‌
2.50%,
12/01/2029
330‌
357‌
3.40%,
10/01/2046
300‌
334‌
5.65%,
04/01/2040
25‌
35‌
6.40%,
06/15/2038
66‌
101‌
Duke
Energy
Indiana
LLC
2.75%,
04/01/2050
160‌
161‌
6.12%,
10/15/2035
77‌
106‌
6.45%,
04/01/2039
300‌
445‌
Duke
Energy
Ohio
Inc
2.13%,
06/01/2030
160‌
167‌
Duke
Energy
Progress
LLC
4.15%,
12/01/2044
300‌
366‌
Emera
US
Finance
LP
3.55%,
06/15/2026
25‌
28‌
4.75%,
06/15/2046
25‌
30‌
Entergy
Texas
Inc
4.00%,
03/30/2029
300‌
350‌
4.50%,
03/30/2039
300‌
371‌
Evergy
Inc
2.45%,
09/15/2024
165‌
174‌
Evergy
Kansas
Central
Inc
4.25%,
12/01/2045
500‌
617‌
Evergy
Metro
Inc
2.25%,
06/01/2030
160‌
167‌
Exelon
Corp
3.95%,
06/15/2025
25‌
28‌
4.45%,
04/15/2046
20‌
24‌
Exelon
Generation
Co
LLC
4.25%,
06/15/2022
500‌
530‌
5.60%,
06/15/2042
500‌
569‌
6.25%,
10/01/2039
349‌
414‌
FirstEnergy
Corp
1.60%,
01/15/2026
250‌
252‌
2.25%,
09/01/2030
500‌
503‌
Florida
Power
&
Light
Co
3.15%,
10/01/2049
90‌
102‌
3.70%,
12/01/2047
200‌
240‌
5.69%,
03/01/2040
48‌
71‌
Georgia
Power
Co
2.20%,
09/15/2024
165‌
173‌
4.30%,
03/15/2042
228‌
265‌
Gulf
Power
Co
3.30%,
05/30/2027
400‌
444‌
Hydro-Quebec
8.05%,
07/07/2024
102‌
130‌
Iberdrola
International
BV
6.75%,
07/15/2036
128‌
178‌
Interstate
Power
and
Light
Co
2.30%,
06/01/2030
40‌
41‌
4.10%,
09/26/2028
300‌
347‌
Kentucky
Utilities
Co
3.30%,
06/01/2050
155‌
165‌
5.13%,
11/01/2040
250‌
327‌
MidAmerican
Energy
Co
3.15%,
04/15/2050
165‌
187‌
3.65%,
04/15/2029
300‌
358‌
4.25%,
07/15/2049
300‌
387‌
Mississippi
Power
Co
4.25%,
03/15/2042
100‌
118‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
$
300‌
$
310‌
2.40%,
03/15/2030
105‌
112‌
3.05%,
02/15/2022
102‌
106‌
3.05%,
04/25/2027
300‌
328‌
3.25%,
11/01/2025
500‌
555‌
Nevada
Power
Co
2.40%,
05/01/2030
200‌
211‌
NextEra
Energy
Capital
Holdings
Inc
2.25%,
06/01/2030
650‌
669‌
2.40%,
09/01/2021
500‌
511‌
2.75%,
11/01/2029
115‌
124‌
5.65%,
05/01/2079
(g)
500‌
545‌
3
Month
USD
LIBOR
+
3.16%
Northern
States
Power
Co/MN
2.60%,
06/01/2051
160‌
163‌
2.90%,
03/01/2050
80‌
87‌
3.40%,
08/15/2042
100‌
113‌
5.35%,
11/01/2039
82‌
116‌
NorthWestern
Corp
4.18%,
11/15/2044
300‌
354‌
Oncor
Electric
Delivery
Co
LLC
2.75%,
06/01/2024
300‌
325‌
3.10%,
09/15/2049
430‌
474‌
5.25%,
09/30/2040
51‌
70‌
Pacific
Gas
and
Electric
Co
2.10%,
08/01/2027
160‌
158‌
2.50%,
02/01/2031
320‌
313‌
3.30%,
08/01/2040
160‌
156‌
3.50%,
08/01/2050
160‌
155‌
PacifiCorp
2.70%,
09/15/2030
1,000‌
1,089‌
6.25%,
10/15/2037
92‌
134‌
PECO
Energy
Co
2.38%,
09/15/2022
100‌
104‌
2.80%,
06/15/2050
425‌
438‌
3.90%,
03/01/2048
200‌
243‌
PPL
Capital
Funding
Inc
4.70%,
06/01/2043
100‌
114‌
PPL
Electric
Utilities
Corp
3.00%,
10/01/2049
80‌
84‌
3.95%,
06/01/2047
300‌
364‌
Progress
Energy
Inc
3.15%,
04/01/2022
128‌
133‌
7.75%,
03/01/2031
136‌
196‌
Public
Service
Co
of
Colorado
2.25%,
09/15/2022
500‌
513‌
2.70%,
01/15/2051
495‌
507‌
3.70%,
06/15/2028
300‌
348‌
Public
Service
Electric
and
Gas
Co
2.45%,
01/15/2030
160‌
171‌
3.00%,
05/15/2027
400‌
441‌
3.15%,
01/01/2050
160‌
176‌
3.25%,
09/01/2023
400‌
432‌
3.65%,
09/01/2042
200‌
231‌
Puget
Sound
Energy
Inc
3.25%,
09/15/2049
60‌
64‌
5.80%,
03/15/2040
351‌
484‌
San
Diego
Gas
&
Electric
Co
3.32%,
04/15/2050
155‌
168‌
Sempra
Energy
2.90%,
02/01/2023
300‌
313‌
3.40%,
02/01/2028
300‌
328‌
3.80%,
02/01/2038
300‌
322‌
4.00%,
02/01/2048
400‌
442‌
6.00%,
10/15/2039
112‌
155‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
75
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Southern
California
Edison
Co
2.25%,
06/01/2030
$
160‌
$
162‌
2.85%,
08/01/2029
125‌
132‌
3.65%,
02/01/2050
315‌
346‌
4.00%,
04/01/2047
585‌
667‌
5.50%,
03/15/2040
102‌
133‌
5.95%,
02/01/2038
117‌
155‌
Southern
Co/The
2.35%,
07/01/2021
520‌
529‌
3.25%,
07/01/2026
570‌
632‌
5.50%,
03/15/2057
(g)
400‌
406‌
3
Month
USD
LIBOR
+
3.63%
Southern
Power
Co
5.25%,
07/15/2043
200‌
226‌
Southwestern
Electric
Power
Co
3.85%,
02/01/2048
300‌
321‌
4.10%,
09/15/2028
400‌
455‌
6.20%,
03/15/2040
51‌
70‌
Tampa
Electric
Co
4.35%,
05/15/2044
200‌
245‌
Union
Electric
Co
3.50%,
04/15/2024
500‌
541‌
Virginia
Electric
and
Power
Co
2.75%,
03/15/2023
500‌
526‌
2.88%,
07/15/2029
90‌
99‌
3.15%,
01/15/2026
30‌
33‌
4.65%,
08/15/2043
250‌
318‌
6.00%,
05/15/2037
77‌
108‌
8.88%,
11/15/2038
10‌
18‌
WEC
Energy
Group
Inc
3.55%,
06/15/2025
110‌
123‌
Wisconsin
Electric
Power
Co
2.05%,
12/15/2024
65‌
68‌
Xcel
Energy
Inc
2.60%,
12/01/2029
115‌
123‌
$
43,545‌
Electronics
-
0.17%
Agilent
Technologies
Inc
2.10%,
06/04/2030
160‌
164‌
Allegion
US
Holding
Co
Inc
3.55%,
10/01/2027
500‌
524‌
Arrow
Electronics
Inc
4.50%,
03/01/2023
200‌
212‌
Fortive
Corp
3.15%,
06/15/2026
535‌
586‌
Honeywell
International
Inc
1.35%,
06/01/2025
75‌
77‌
1.95%,
06/01/2030
310‌
324‌
2.15%,
08/08/2022
115‌
119‌
2.30%,
08/15/2024
365‌
388‌
2.50%,
11/01/2026
50‌
55‌
2.70%,
08/15/2029
85‌
94‌
2.80%,
06/01/2050
160‌
172‌
3.81%,
11/21/2047
77‌
95‌
Roper
Technologies
Inc
2.35%,
09/15/2024
110‌
116‌
2.80%,
12/15/2021
500‌
514‌
2.95%,
09/15/2029
95‌
104‌
3.13%,
11/15/2022
750‌
785‌
Tyco
Electronics
Group
SA
7.13%,
10/01/2037
14‌
21‌
$
4,350‌
Environmental
Control
-
0.08%
Republic
Services
Inc
2.30%,
03/01/2030
340‌
355‌
2.50%,
08/15/2024
215‌
229‌
2.90%,
07/01/2026
500‌
546‌
5.25%,
11/15/2021
200‌
212‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Environmental
Control
(continued)
Waste
Management
Inc
3.90%,
03/01/2035
$
200‌
$
237‌
4.10%,
03/01/2045
210‌
251‌
4.15%,
07/15/2049
115‌
144‌
$
1,974‌
Finance
-
Mortgage
Loan/Banker
-
1.03%
Fannie
Mae
0.50%,
06/17/2025
370‌
370‌
1.38%,
10/07/2021
400‌
406‌
1.38%,
09/06/2022
300‌
307‌
2.00%,
01/05/2022
400‌
411‌
2.00%,
10/05/2022
500‌
519‌
2.13%,
04/24/2026
3,000‌
3,269‌
2.25%,
04/12/2022
250‌
259‌
2.38%,
01/19/2023
500‌
528‌
2.50%,
02/05/2024
500‌
539‌
2.63%,
01/11/2022
500‌
519‌
2.63%,
09/06/2024
750‌
821‌
5.63%,
07/15/2037
200‌
323‌
6.63%,
11/15/2030
602‌
933‌
7.13%,
01/15/2030
199‌
309‌
7.25%,
05/15/2030
280‌
444‌
Federal
Home
Loan
Banks
1.13%,
07/14/2021
1,500‌
1,515‌
1.88%,
11/29/2021
250‌
256‌
2.13%,
06/09/2023
1,125‌
1,186‌
2.50%,
02/13/2024
2,000‌
2,159‌
3.00%,
10/12/2021
1,000‌
1,036‌
3.25%,
11/16/2028
(e)
2,500‌
2,979‌
5.50%,
07/15/2036
700‌
1,094‌
Freddie
Mac
0.25%,
06/26/2023
1,125‌
1,123‌
2.38%,
01/13/2022
1,757‌
1,816‌
2.75%,
06/19/2023
1,625‌
1,747‌
6.25%,
07/15/2032
231‌
363‌
6.75%,
03/15/2031
577‌
908‌
$
26,139‌
Food
-
0.32%
Campbell
Soup
Co
4.15%,
03/15/2028
160‌
184‌
Conagra
Brands
Inc
3.20%,
01/25/2023
567‌
597‌
4.85%,
11/01/2028
205‌
246‌
5.30%,
11/01/2038
120‌
157‌
5.40%,
11/01/2048
120‌
166‌
General
Mills
Inc
2.60%,
10/12/2022
500‌
521‌
3.15%,
12/15/2021
77‌
79‌
3.70%,
10/17/2023
300‌
326‌
4.00%,
04/17/2025
300‌
339‌
Hershey
Co/The
1.70%,
06/01/2030
160‌
163‌
3.38%,
08/15/2046
350‌
392‌
Kellogg
Co
2.10%,
06/01/2030
160‌
162‌
2.65%,
12/01/2023
417‌
442‌
3.25%,
04/01/2026
500‌
557‌
Koninklijke
Ahold
Delhaize
NV
5.70%,
10/01/2040
30‌
41‌
Kroger
Co/The
3.40%,
04/15/2022
154‌
161‌
3.70%,
08/01/2027
300‌
343‌
3.95%,
01/15/2050
175‌
201‌
4.45%,
02/01/2047
55‌
67‌
5.15%,
08/01/2043
300‌
382‌
5.40%,
07/15/2040
25‌
32‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
76
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Food
(continued)
Mondelez
International
Inc
0.63%,
07/01/2022
(h),(j)
$
165‌
$
165‌
2.13%,
04/13/2023
85‌
88‌
3.63%,
05/07/2023
300‌
323‌
4.13%,
05/07/2028
300‌
356‌
Sysco
Corp
2.40%,
02/15/2030
135‌
133‌
4.85%,
10/01/2045
250‌
290‌
5.38%,
09/21/2035
500‌
605‌
Tyson
Foods
Inc
4.55%,
06/02/2047
520‌
639‌
$
8,157‌
Forest
Products
&
Paper
-
0.08%
Celulosa
Arauco
y
Constitucion
SA
4.50%,
08/01/2024
500‌
528‌
Georgia-Pacific
LLC
7.75%,
11/15/2029
51‌
76‌
8.00%,
01/15/2024
228‌
285‌
International
Paper
Co
3.00%,
02/15/2027
35‌
38‌
4.40%,
08/15/2047
350‌
412‌
4.80%,
06/15/2044
300‌
358‌
7.30%,
11/15/2039
25‌
35‌
7.50%,
08/15/2021
46‌
49‌
Suzano
Austria
GmbH
5.00%,
01/15/2030
300‌
304‌
$
2,085‌
Gas
-
0.09%
Atmos
Energy
Corp
3.38%,
09/15/2049
165‌
185‌
4.13%,
10/15/2044
400‌
493‌
Dominion
Energy
Gas
Holdings
LLC
2.50%,
11/15/2024
155‌
164‌
4.80%,
11/01/2043
300‌
354‌
NiSource
Inc
3.49%,
05/15/2027
20‌
23‌
3.60%,
05/01/2030
150‌
172‌
5.95%,
06/15/2041
525‌
721‌
Southern
California
Gas
Co
2.55%,
02/01/2030
160‌
172‌
$
2,284‌
Hand
&
Machine
Tools
-
0.02%
Stanley
Black
&
Decker
Inc
2.30%,
03/15/2030
160‌
166‌
2.90%,
11/01/2022
200‌
211‌
$
377‌
Healthcare
-
Products
-
0.24%
Abbott
Laboratories
1.15%,
01/30/2028
250‌
251‌
1.40%,
06/30/2030
330‌
328‌
2.55%,
03/15/2022
35‌
36‌
3.75%,
11/30/2026
266‌
309‌
4.75%,
11/30/2036
40‌
54‌
4.90%,
11/30/2046
500‌
718‌
5.30%,
05/27/2040
200‌
290‌
Boston
Scientific
Corp
1.90%,
06/01/2025
160‌
166‌
2.65%,
06/01/2030
160‌
167‌
3.85%,
05/15/2025
270‌
304‌
4.70%,
03/01/2049
50‌
64‌
7.38%,
01/15/2040
51‌
79‌
DH
Europe
Finance
II
Sarl
2.05%,
11/15/2022
155‌
160‌
2.60%,
11/15/2029
155‌
165‌
3.25%,
11/15/2039
155‌
171‌
Koninklijke
Philips
NV
5.00%,
03/15/2042
128‌
165‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Products
(continued)
Medtronic
Inc
3.15%,
03/15/2022
$
220‌
$
231‌
4.38%,
03/15/2035
15‌
20‌
Stryker
Corp
3.50%,
03/15/2026
500‌
562‌
4.10%,
04/01/2043
200‌
237‌
4.63%,
03/15/2046
20‌
26‌
Thermo
Fisher
Scientific
Inc
2.60%,
10/01/2029
160‌
173‌
2.95%,
09/19/2026
530‌
586‌
4.13%,
03/25/2025
160‌
182‌
Zimmer
Biomet
Holdings
Inc
3.15%,
04/01/2022
500‌
519‌
$
5,963‌
Healthcare
-
Services
-
0.59%
Aetna
Inc
2.80%,
06/15/2023
35‌
37‌
4.13%,
11/15/2042
100‌
112‌
6.63%,
06/15/2036
105‌
149‌
6.75%,
12/15/2037
112‌
160‌
Anthem
Inc
2.88%,
09/15/2029
120‌
130‌
2.95%,
12/01/2022
300‌
316‌
3.13%,
05/15/2050
600‌
621‌
3.30%,
01/15/2023
325‌
346‌
3.65%,
12/01/2027
300‌
342‌
4.38%,
12/01/2047
300‌
373‌
4.63%,
05/15/2042
30‌
37‌
4.65%,
01/15/2043
115‌
144‌
Ascension
Health
3.95%,
11/15/2046
500‌
625‌
Baylor
Scott
&
White
Holdings
3.97%,
11/15/2046
232‌
277‌
Children's
Hospital
Medical
Center/Cincinnati
OH
4.27%,
05/15/2044
215‌
266‌
CommonSpirit
Health
4.35%,
11/01/2042
200‌
208‌
Dignity
Health
3.13%,
11/01/2022
500‌
517‌
HCA
Inc
4.50%,
02/15/2027
800‌
892‌
5.25%,
06/15/2026
400‌
462‌
Humana
Inc
3.13%,
08/15/2029
85‌
92‌
4.50%,
04/01/2025
160‌
182‌
4.95%,
10/01/2044
325‌
427‌
Kaiser
Foundation
Hospitals
3.27%,
11/01/2049
230‌
257‌
4.15%,
05/01/2047
470‌
610‌
Laboratory
Corp
of
America
Holdings
2.30%,
12/01/2024
310‌
326‌
2.95%,
12/01/2029
310‌
329‌
4.70%,
02/01/2045
115‌
140‌
Memorial
Sloan-Kettering
Cancer
Center
4.13%,
07/01/2052
200‌
261‌
4.20%,
07/01/2055
250‌
327‌
Mount
Sinai
Hospitals
Group
Inc
3.98%,
07/01/2048
400‌
443‌
Partners
Healthcare
System
Inc
3.19%,
07/01/2049
315‌
334‌
4.12%,
07/01/2055
300‌
378‌
Quest
Diagnostics
Inc
2.95%,
06/30/2030
155‌
164‌
UnitedHealth
Group
Inc
1.25%,
01/15/2026
160‌
163‌
2.00%,
05/15/2030
160‌
168‌
2.38%,
10/15/2022
500‌
523‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
77
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
UnitedHealth
Group
Inc  
(continued)
2.38%,
08/15/2024
$
250‌
$
267‌
2.75%,
05/15/2040
160‌
171‌
2.88%,
03/15/2022
180‌
186‌
2.88%,
08/15/2029
175‌
195‌
2.90%,
05/15/2050
160‌
169‌
3.45%,
01/15/2027
540‌
616‌
3.50%,
08/15/2039
200‌
233‌
3.70%,
08/15/2049
350‌
414‌
4.25%,
06/15/2048
165‌
211‌
4.38%,
03/15/2042
750‌
959‌
4.45%,
12/15/2048
120‌
157‌
4.63%,
07/15/2035
30‌
39‌
6.50%,
06/15/2037
77‌
117‌
$
14,872‌
Insurance
-
0.80%
Aflac
Inc
3.63%,
11/15/2024
230‌
260‌
Allied
World
Assurance
Co
Holdings
Ltd
4.35%,
10/29/2025
500‌
523‌
Allstate
Corp/The
3.28%,
12/15/2026
500‌
569‌
5.55%,
05/09/2035
200‌
289‌
American
International
Group
Inc
3.75%,
07/10/2025
20‌
22‌
3.88%,
01/15/2035
750‌
860‌
4.20%,
04/01/2028
190‌
215‌
4.38%,
01/15/2055
30‌
34‌
4.70%,
07/10/2035
750‌
914‌
4.80%,
07/10/2045
50‌
61‌
4.88%,
06/01/2022
280‌
302‌
Aon
Corp
2.20%,
11/15/2022
660‌
684‌
2.80%,
05/15/2030
160‌
171‌
Arch
Capital
Finance
LLC
5.03%,
12/15/2046
250‌
313‌
Arch
Capital
Group
US
Inc
5.14%,
11/01/2043
375‌
470‌
Athene
Holding
Ltd
4.13%,
01/12/2028
500‌
516‌
AXA
SA
8.60%,
12/15/2030
38‌
55‌
Berkshire
Hathaway
Finance
Corp
1.85%,
03/12/2030
80‌
82‌
4.20%,
08/15/2048
285‌
364‌
4.25%,
01/15/2049
400‌
513‌
4.30%,
05/15/2043
300‌
393‌
5.75%,
01/15/2040
115‌
174‌
Berkshire
Hathaway
Inc
2.75%,
03/15/2023
30‌
32‌
3.13%,
03/15/2026
350‌
392‌
3.40%,
01/31/2022
205‌
215‌
4.50%,
02/11/2043
25‌
34‌
Chubb
Corp/The
6.50%,
05/15/2038
10‌
15‌
Chubb
INA
Holdings
Inc
2.88%,
11/03/2022
500‌
525‌
3.35%,
05/03/2026
30‌
34‌
4.35%,
11/03/2045
25‌
33‌
6.70%,
05/15/2036
250‌
375‌
CNA
Financial
Corp
5.75%,
08/15/2021
77‌
81‌
Equitable
Holdings
Inc
4.35%,
04/20/2028
205‌
231‌
Hartford
Financial
Services
Group
Inc/The
3.60%,
08/19/2049
170‌
179‌
4.30%,
04/15/2043
250‌
288‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
4.00%,
09/01/2023
$
1,000‌
$
1,089‌
4.35%,
03/01/2048
55‌
62‌
7.00%,
06/15/2040
47‌
67‌
Loews
Corp
2.63%,
05/15/2023
200‌
211‌
4.13%,
05/15/2043
200‌
217‌
Manulife
Financial
Corp
5.38%,
03/04/2046
250‌
332‌
Marsh
&
McLennan
Cos
Inc
3.88%,
03/15/2024
500‌
553‌
4.38%,
03/15/2029
50‌
60‌
4.90%,
03/15/2049
400‌
540‌
MetLife
Inc
3.00%,
03/01/2025
300‌
329‌
3.60%,
04/10/2024
250‌
277‌
4.37%,
09/15/2023
235‌
262‌
4.60%,
05/13/2046
225‌
286‌
4.88%,
11/13/2043
20‌
26‌
5.70%,
06/15/2035
164‌
236‌
6.40%,
12/15/2066
288‌
340‌
3
Month
USD
LIBOR
+
2.21%
Progressive
Corp/The
3.20%,
03/26/2030
160‌
182‌
3.75%,
08/23/2021
277‌
288‌
4.35%,
04/25/2044
200‌
254‌
Prudential
Financial
Inc
2.10%,
03/10/2030
(e)
160‌
163‌
3.50%,
05/15/2024
700‌
775‌
3.70%,
03/13/2051
130‌
143‌
3.91%,
12/07/2047
177‌
201‌
4.50%,
11/16/2021
128‌
135‌
5.20%,
03/15/2044
(g)
350‌
357‌
3
Month
USD
LIBOR
+
3.04%
5.70%,
12/14/2036
25‌
34‌
5.70%,
09/15/2048
(g)
150‌
168‌
3
Month
USD
LIBOR
+
2.67%
Reinsurance
Group
of
America
Inc
4.70%,
09/15/2023
200‌
219‌
Travelers
Cos
Inc/The
4.00%,
05/30/2047
400‌
492‌
6.25%,
06/15/2037
12‌
18‌
6.75%,
06/20/2036
51‌
77‌
Trinity
Acquisition
PLC
4.40%,
03/15/2026
500‌
570‌
Willis
North
America
Inc
2.95%,
09/15/2029
55‌
58‌
3.60%,
05/15/2024
300‌
325‌
3.88%,
09/15/2049
165‌
182‌
XLIT
Ltd
5.25%,
12/15/2043
400‌
536‌
$
20,282‌
Internet
-
0.33%
Alibaba
Group
Holding
Ltd
3.13%,
11/28/2021
270‌
278‌
3.40%,
12/06/2027
325‌
361‌
3.60%,
11/28/2024
300‌
327‌
4.40%,
12/06/2057
305‌
392‌
Alphabet
Inc
2.00%,
08/15/2026
30‌
32‌
3.38%,
02/25/2024
530‌
583‌
Amazon.com
Inc
1.20%,
06/03/2027
465‌
472‌
1.50%,
06/03/2030
465‌
470‌
2.40%,
02/22/2023
370‌
389‌
2.50%,
11/29/2022
130‌
136‌
2.50%,
06/03/2050
465‌
477‌
3.15%,
08/22/2027
490‌
561‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
78
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Internet
(continued)
Amazon.com
Inc  
(continued)
3.80%,
12/05/2024
$
20‌
$
23‌
3.88%,
08/22/2037
340‌
421‌
4.05%,
08/22/2047
30‌
39‌
4.80%,
12/05/2034
30‌
41‌
4.95%,
12/05/2044
515‌
735‌
Baidu
Inc
3.08%,
04/07/2025
200‌
210‌
3.50%,
11/28/2022
500‌
520‌
4.13%,
06/30/2025
500‌
549‌
eBay
Inc
1.90%,
03/11/2025
160‌
165‌
2.60%,
07/15/2022
600‌
620‌
3.45%,
08/01/2024
30‌
33‌
3.80%,
03/09/2022
500‌
525‌
4.00%,
07/15/2042
100‌
109‌
$
8,468‌
Iron
&
Steel
-
0.07%
Nucor
Corp
2.00%,
06/01/2025
155‌
161‌
4.00%,
08/01/2023
500‌
543‌
Steel
Dynamics
Inc
2.40%,
06/15/2025
40‌
41‌
2.80%,
12/15/2024
80‌
83‌
Vale
Overseas
Ltd
6.25%,
08/10/2026
400‌
471‌
6.88%,
11/21/2036
317‌
414‌
8.25%,
01/17/2034
38‌
53‌
$
1,766‌
Lodging
-
0.04%
Las
Vegas
Sands
Corp
3.20%,
08/08/2024
170‌
169‌
3.50%,
08/18/2026
85‌
85‌
3.90%,
08/08/2029
170‌
168‌
Marriott
International
Inc/MD
3.13%,
10/15/2021
500‌
501‌
Sands
China
Ltd
4.60%,
08/08/2023
200‌
210‌
$
1,133‌
Machinery
-
Construction
&
Mining
-
0.10%
ABB
Finance
USA
Inc
2.88%,
05/08/2022
100‌
104‌
Caterpillar
Financial
Services
Corp
1.70%,
08/09/2021
380‌
385‌
1.90%,
09/06/2022
815‌
841‌
1.93%,
10/01/2021
190‌
194‌
1.95%,
11/18/2022
265‌
274‌
Caterpillar
Inc
2.60%,
04/09/2030
150‌
163‌
3.25%,
09/19/2049
160‌
177‌
3.40%,
05/15/2024
30‌
33‌
3.80%,
08/15/2042
105‌
125‌
6.05%,
08/15/2036
132‌
189‌
$
2,485‌
Machinery
-
Diversified
-
0.14%
Deere
&
Co
2.88%,
09/07/2049
165‌
176‌
3.10%,
04/15/2030
160‌
181‌
3.90%,
06/09/2042
30‌
37‌
5.38%,
10/16/2029
500‌
651‌
Dover
Corp
5.38%,
03/01/2041
77‌
99‌
John
Deere
Capital
Corp
0.70%,
07/05/2023
160‌
161‌
1.20%,
04/06/2023
120‌
122‌
1.95%,
06/13/2022
375‌
386‌
2.05%,
01/09/2025
(e)
160‌
169‌
2.80%,
03/06/2023
20‌
21‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Machinery
-
Diversified
(continued)
John
Deere
Capital
Corp  
(continued)
2.80%,
07/18/2029
$
385‌
$
427‌
3.90%,
07/12/2021
500‌
518‌
Otis
Worldwide
Corp
2.06%,
04/05/2025
(f)
160‌
168‌
2.57%,
02/15/2030
(f)
160‌
168‌
3.36%,
02/15/2050
(f)
160‌
169‌
$
3,453‌
Media
-
0.89%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
2.80%,
04/01/2031
405‌
410‌
3.70%,
04/01/2051
405‌
397‌
4.46%,
07/23/2022
340‌
363‌
4.80%,
03/01/2050
545‌
603‌
5.75%,
04/01/2048
605‌
753‌
6.48%,
10/23/2045
435‌
575‌
Comcast
Corp
2.35%,
01/15/2027
60‌
64‌
2.65%,
02/01/2030
125‌
136‌
2.75%,
03/01/2023
115‌
122‌
2.85%,
01/15/2023
100‌
107‌
3.10%,
04/01/2025
160‌
176‌
3.13%,
07/15/2022
30‌
32‌
3.15%,
03/01/2026
30‌
34‌
3.25%,
11/01/2039
245‌
272‌
3.38%,
08/15/2025
525‌
585‌
3.40%,
07/15/2046
20‌
22‌
3.45%,
02/01/2050
485‌
556‌
3.55%,
05/01/2028
125‌
144‌
3.75%,
04/01/2040
860‌
1,007‌
3.90%,
03/01/2038
150‌
178‌
4.00%,
08/15/2047
30‌
36‌
4.00%,
03/01/2048
400‌
486‌
4.00%,
11/01/2049
20‌
24‌
4.15%,
10/15/2028
500‌
599‌
4.25%,
01/15/2033
120‌
147‌
4.60%,
10/15/2038
485‌
617‌
4.60%,
08/15/2045
500‌
643‌
4.65%,
07/15/2042
1,615‌
2,080‌
4.75%,
03/01/2044
45‌
59‌
5.65%,
06/15/2035
20‌
28‌
6.45%,
03/15/2037
85‌
126‌
6.95%,
08/15/2037
274‌
426‌
7.05%,
03/15/2033
15‌
23‌
Discovery
Communications
LLC
3.63%,
05/15/2030
180‌
197‌
3.95%,
03/20/2028
500‌
559‌
4.88%,
04/01/2043
25‌
29‌
6.35%,
06/01/2040
73‌
98‌
Fox
Corp
3.05%,
04/07/2025
40‌
43‌
5.58%,
01/25/2049
500‌
696‌
Grupo
Televisa
SAB
4.63%,
01/30/2026
500‌
546‌
NBCUniversal
Media
LLC
4.45%,
01/15/2043
15‌
19‌
6.40%,
04/30/2040
251‌
379‌
Thomson
Reuters
Corp
5.85%,
04/15/2040
25‌
31‌
Time
Warner
Cable
LLC
4.00%,
09/01/2021
190‌
195‌
5.50%,
09/01/2041
340‌
410‌
5.88%,
11/15/2040
20‌
25‌
6.55%,
05/01/2037
176‌
232‌
6.75%,
06/15/2039
77‌
102‌
7.30%,
07/01/2038
300‌
413‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
79
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Time
Warner
Entertainment
Co
LP
8.38%,
07/15/2033
$
95‌
$
143‌
TWDC
Enterprises
18
Corp
2.75%,
08/16/2021
102‌
104‌
3.70%,
12/01/2042
100‌
111‌
7.00%,
03/01/2032
51‌
75‌
ViacomCBS
Inc
4.00%,
01/15/2026
515‌
577‌
4.20%,
05/19/2032
200‌
225‌
4.38%,
03/15/2043
435‌
455‌
4.85%,
07/01/2042
200‌
212‌
6.88%,
04/30/2036
181‌
245‌
7.88%,
07/30/2030
178‌
257‌
Walt
Disney
Co/The
1.75%,
08/30/2024
325‌
337‌
1.75%,
01/13/2026
635‌
653‌
2.00%,
09/01/2029
245‌
250‌
2.20%,
01/13/2028
160‌
167‌
2.65%,
01/13/2031
395‌
419‌
2.75%,
09/01/2049
325‌
316‌
3.35%,
03/24/2025
120‌
133‌
3.50%,
05/13/2040
160‌
175‌
3.60%,
01/13/2051
160‌
178‌
3.70%,
03/23/2027
120‌
138‌
4.63%,
03/23/2040
240‌
300‌
4.75%,
11/15/2046
230‌
299‌
4.95%,
10/15/2045
350‌
450‌
6.20%,
12/15/2034
154‌
223‌
6.40%,
12/15/2035
98‌
147‌
$
22,393‌
Metal
Fabrication
&
Hardware
-
0.02%
Precision
Castparts
Corp
2.50%,
01/15/2023
100‌
105‌
3.25%,
06/15/2025
25‌
28‌
4.38%,
06/15/2045
250‌
302‌
$
435‌
Mining
-
0.10%
Barrick
Gold
Corp
5.25%,
04/01/2042
20‌
26‌
Barrick
North
America
Finance
LLC
5.75%,
05/01/2043
355‌
502‌
Barrick
PD
Australia
Finance
Pty
Ltd
5.95%,
10/15/2039
90‌
121‌
BHP
Billiton
Finance
USA
Ltd
5.00%,
09/30/2043
270‌
373‌
Newmont
Corp
2.25%,
10/01/2030
110‌
112‌
4.88%,
03/15/2042
20‌
26‌
Rio
Tinto
Alcan
Inc
6.13%,
12/15/2033
77‌
111‌
Rio
Tinto
Finance
USA
PLC
4.75%,
03/22/2042
328‌
440‌
Southern
Copper
Corp
5.88%,
04/23/2045
350‌
446‌
6.75%,
04/16/2040
258‌
349‌
Teck
Resources
Ltd
3.90%,
07/15/2030
(f)
120‌
120‌
$
2,626‌
Miscellaneous
Manufacturers
-
0.23%
3M
Co
1.63%,
09/19/2021
500‌
507‌
1.75%,
02/14/2023
65‌
67‌
2.00%,
02/14/2025
130‌
137‌
2.38%,
08/26/2029
500‌
540‌
3.25%,
08/26/2049
400‌
445‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
(continued)
Eaton
Corp
2.75%,
11/02/2022
$
100‌
$
105‌
4.00%,
11/02/2032
100‌
118‌
4.15%,
11/02/2042
50‌
59‌
General
Electric
Co
3.10%,
01/09/2023
35‌
37‌
3.45%,
05/01/2027
75‌
77‌
3.63%,
05/01/2030
240‌
240‌
4.13%,
10/09/2042
26‌
25‌
4.25%,
05/01/2040
75‌
75‌
4.35%,
05/01/2050
295‌
292‌
6.15%,
08/07/2037
155‌
181‌
6.75%,
03/15/2032
896‌
1,090‌
Illinois
Tool
Works
Inc
2.65%,
11/15/2026
500‌
552‌
3.50%,
03/01/2024
350‌
383‌
Parker-Hannifin
Corp
3.50%,
09/15/2022
577‌
608‌
Trane
Technologies
Luxembourg
Finance
SA
4.65%,
11/01/2044
300‌
356‌
$
5,894‌
Oil
&
Gas
-
1.13%
BP
Capital
Markets
America
Inc
2.94%,
04/06/2023
135‌
143‌
3.00%,
02/24/2050
160‌
157‌
3.19%,
04/06/2025
275‌
300‌
3.22%,
04/14/2024
420‌
452‌
3.54%,
04/06/2027
275‌
305‌
3.59%,
04/14/2027
30‌
33‌
BP
Capital
Markets
PLC
3.06%,
03/17/2022
315‌
328‌
3.28%,
09/19/2027
175‌
190‌
3.56%,
11/01/2021
200‌
208‌
3.72%,
11/28/2028
40‌
45‌
3.81%,
02/10/2024
400‌
440‌
Canadian
Natural
Resources
Ltd
2.95%,
01/15/2023
30‌
31‌
3.85%,
06/01/2027
655‌
702‌
4.95%,
06/01/2047
20‌
22‌
Chevron
Corp
1.14%,
05/11/2023
85‌
86‌
1.55%,
05/11/2025
85‌
87‌
2.00%,
05/11/2027
160‌
168‌
2.24%,
05/11/2030
160‌
168‌
2.36%,
12/05/2022
325‌
338‌
2.41%,
03/03/2022
500‌
515‌
2.95%,
05/16/2026
355‌
393‌
2.98%,
05/11/2040
40‌
43‌
3.08%,
05/11/2050
160‌
170‌
CNOOC
Finance
2013
Ltd
2.88%,
09/30/2029
200‌
212‌
4.25%,
05/09/2043
100‌
119‌
CNOOC
Finance
2014
ULC
4.25%,
04/30/2024
500‌
551‌
Concho
Resources
Inc
4.30%,
08/15/2028
300‌
329‌
4.88%,
10/01/2047
120‌
135‌
Conoco
Funding
Co
7.25%,
10/15/2031
200‌
289‌
ConocoPhillips
6.50%,
02/01/2039
169‌
246‌
ConocoPhillips
Co
4.30%,
11/15/2044
420‌
512‌
6.95%,
04/15/2029
202‌
282‌
Devon
Energy
Corp
5.00%,
06/15/2045
10‌
9‌
5.60%,
07/15/2041
425‌
415‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
80
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Diamondback
Energy
Inc
2.88%,
12/01/2024
$
155‌
$
155‌
3.25%,
12/01/2026
155‌
156‌
Ecopetrol
SA
5.88%,
09/18/2023
400‌
428‌
5.88%,
05/28/2045
400‌
420‌
EOG
Resources
Inc
2.63%,
03/15/2023
200‌
210‌
4.15%,
01/15/2026
350‌
403‌
Equinor
ASA
1.75%,
01/22/2026
160‌
164‌
2.45%,
01/17/2023
30‌
31‌
2.65%,
01/15/2024
400‌
426‌
2.88%,
04/06/2025
145‌
156‌
3.00%,
04/06/2027
645‌
709‌
3.15%,
01/23/2022
102‌
106‌
3.25%,
11/18/2049
220‌
234‌
3.63%,
04/06/2040
145‌
163‌
5.10%,
08/17/2040
263‌
355‌
Exxon
Mobil
Corp
1.57%,
04/15/2023
230‌
236‌
1.90%,
08/16/2022
500‌
516‌
2.28%,
08/16/2026
500‌
533‌
2.44%,
08/16/2029
150‌
159‌
2.61%,
10/15/2030
305‌
327‌
2.99%,
03/19/2025
305‌
331‌
3.00%,
08/16/2039
150‌
158‌
3.10%,
08/16/2049
450‌
468‌
3.45%,
04/15/2051
155‌
172‌
4.23%,
03/19/2040
305‌
366‌
Hess
Corp
5.60%,
02/15/2041
51‌
54‌
7.13%,
03/15/2033
221‌
258‌
7.30%,
08/15/2031
25‌
29‌
HollyFrontier
Corp
5.88%,
04/01/2026
475‌
521‌
Marathon
Oil
Corp
2.80%,
11/01/2022
10‌
10‌
3.85%,
06/01/2025
(e)
505‌
509‌
6.60%,
10/01/2037
223‌
231‌
Marathon
Petroleum
Corp
3.63%,
09/15/2024
400‌
427‌
5.00%,
09/15/2054
200‌
205‌
5.13%,
12/15/2026
300‌
345‌
Newfield
Exploration
Co
5.63%,
07/01/2024
500‌
478‌
Nexen
Inc
5.88%,
03/10/2035
340‌
471‌
6.40%,
05/15/2037
157‌
222‌
7.50%,
07/30/2039
15‌
24‌
Noble
Energy
Inc
3.25%,
10/15/2029
325‌
296‌
5.05%,
11/15/2044
25‌
23‌
5.25%,
11/15/2043
350‌
326‌
6.00%,
03/01/2041
102‌
99‌
Phillips
66
2.15%,
12/15/2030
410‌
398‌
3.85%,
04/09/2025
490‌
543‌
5.88%,
05/01/2042
128‌
173‌
Shell
International
Finance
BV
1.75%,
09/12/2021
65‌
66‌
2.00%,
11/07/2024
155‌
162‌
2.38%,
08/21/2022
130‌
136‌
2.38%,
04/06/2025
430‌
456‌
2.38%,
11/07/2029
155‌
164‌
2.50%,
09/12/2026
330‌
355‌
2.75%,
04/06/2030
430‌
466‌
3.13%,
11/07/2049
155‌
163‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Shell
International
Finance
BV  
(continued)
3.25%,
04/06/2050
$
430‌
$
457‌
3.63%,
08/21/2042
100‌
109‌
4.00%,
05/10/2046
245‌
286‌
4.38%,
05/11/2045
490‌
603‌
4.55%,
08/12/2043
35‌
44‌
5.50%,
03/25/2040
25‌
35‌
6.38%,
12/15/2038
43‌
64‌
Suncor
Energy
Inc
2.80%,
05/15/2023
160‌
167‌
4.00%,
11/15/2047
90‌
93‌
5.95%,
05/15/2035
400‌
474‌
6.50%,
06/15/2038
428‌
540‌
6.80%,
05/15/2038
12‌
16‌
6.85%,
06/01/2039
5‌
7‌
Total
Capital
International
SA
2.43%,
01/10/2025
85‌
90‌
2.83%,
01/10/2030
85‌
92‌
2.88%,
02/17/2022
128‌
133‌
2.99%,
06/29/2041
370‌
378‌
3.13%,
05/29/2050
160‌
164‌
3.39%,
06/29/2060
370‌
379‌
3.46%,
07/12/2049
85‌
92‌
Valero
Energy
Corp
3.65%,
03/15/2025
500‌
543‌
6.63%,
06/15/2037
234‌
311‌
7.50%,
04/15/2032
15‌
21‌
$
28,513‌
Oil
&
Gas
Services
-
0.09%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77%,
12/15/2022
155‌
161‌
3.14%,
11/07/2029
155‌
162‌
3.34%,
12/15/2027
165‌
176‌
4.08%,
12/15/2047
170‌
177‌
Halliburton
Co
3.25%,
11/15/2021
651‌
665‌
3.80%,
11/15/2025
62‌
67‌
4.50%,
11/15/2041
51‌
49‌
4.85%,
11/15/2035
275‌
289‌
7.45%,
09/15/2039
10‌
13‌
National
Oilwell
Varco
Inc
2.60%,
12/01/2022
144‌
145‌
3.60%,
12/01/2029
155‌
152‌
3.95%,
12/01/2042
200‌
167‌
$
2,223‌
Packaging
&
Containers
-
0.05%
Packaging
Corp
of
America
3.00%,
12/15/2029
310‌
336‌
4.05%,
12/15/2049
155‌
185‌
WestRock
RKT
LLC
4.00%,
03/01/2023
500‌
533‌
WRKCo
Inc
3.00%,
06/15/2033
80‌
83‌
$
1,137‌
Pharmaceuticals
-
1.79%
AbbVie
Inc
2.15%,
11/19/2021
(f)
310‌
316‌
2.30%,
11/21/2022
(f)
310‌
321‌
2.60%,
11/21/2024
(f)
465‌
494‌
2.90%,
11/06/2022
200‌
210‌
2.95%,
11/21/2026
(f)
310‌
337‌
3.20%,
05/14/2026
335‌
368‌
3.20%,
11/21/2029
(f)
775‌
853‌
3.25%,
10/01/2022
(f)
180‌
189‌
3.38%,
11/14/2021
350‌
363‌
3.45%,
03/15/2022
(f)
30‌
31‌
3.75%,
11/14/2023
350‌
380‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
81
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
AbbVie
Inc  
(continued)
3.80%,
03/15/2025
(f)
$
330‌
$
366‌
3.85%,
06/15/2024
(f)
445‌
488‌
4.05%,
11/21/2039
(f)
385‌
450‌
4.25%,
11/14/2028
220‌
257‌
4.25%,
11/21/2049
(f)
620‌
752‌
4.30%,
05/14/2036
170‌
196‌
4.40%,
11/06/2042
200‌
239‌
4.45%,
05/14/2046
280‌
342‌
4.50%,
05/14/2035
300‌
361‌
4.63%,
10/01/2042
(f)
100‌
122‌
4.70%,
05/14/2045
330‌
415‌
4.75%,
03/15/2045
(f)
235‌
292‌
4.88%,
11/14/2048
210‌
276‌
AmerisourceBergen
Corp
3.40%,
05/15/2024
250‌
270‌
AstraZeneca
PLC
2.38%,
06/12/2022
20‌
21‌
3.38%,
11/16/2025
905‌
1,017‌
4.00%,
09/18/2042
125‌
153‌
4.38%,
11/16/2045
185‌
241‌
4.38%,
08/17/2048
90‌
120‌
6.45%,
09/15/2037
164‌
249‌
Becton
Dickinson
and
Co
2.82%,
05/20/2030
160‌
169‌
2.89%,
06/06/2022
50‌
52‌
3.36%,
06/06/2024
20‌
22‌
3.70%,
06/06/2027
500‌
559‌
3.73%,
12/15/2024
194‌
214‌
4.67%,
06/06/2047
35‌
43‌
4.69%,
12/15/2044
196‌
241‌
Bristol-Myers
Squibb
Co
2.60%,
05/16/2022
(f)
500‌
520‌
2.90%,
07/26/2024
(f)
610‌
660‌
3.25%,
08/15/2022
(f)
25‌
26‌
3.25%,
02/20/2023
(f)
400‌
426‌
3.25%,
08/01/2042
300‌
336‌
3.40%,
07/26/2029
(f)
540‌
629‌
3.55%,
08/15/2022
(f)
20‌
21‌
3.90%,
02/20/2028
(f)
185‌
218‌
4.13%,
06/15/2039
(f)
230‌
293‌
4.25%,
10/26/2049
(f)
430‌
567‌
4.35%,
11/15/2047
(f)
150‌
198‌
4.55%,
02/20/2048
(f)
185‌
251‌
4.63%,
05/15/2044
(f)
355‌
472‌
5.00%,
08/15/2045
(f)
30‌
42‌
Cardinal
Health
Inc
2.62%,
06/15/2022
250‌
258‌
3.08%,
06/15/2024
50‌
53‌
3.20%,
03/15/2023
200‌
211‌
3.41%,
06/15/2027
200‌
224‌
4.60%,
03/15/2043
100‌
110‌
Cigna
Corp
2.40%,
03/15/2030
160‌
166‌
3.20%,
03/15/2040
160‌
169‌
3.40%,
09/17/2021
400‌
413‌
4.13%,
11/15/2025
270‌
310‌
4.38%,
10/15/2028
750‌
888‌
4.80%,
08/15/2038
400‌
507‌
4.80%,
07/15/2046
(f)
25‌
31‌
4.90%,
12/15/2048
360‌
474‌
6.13%,
11/15/2041
(f)
16‌
23‌
CVS
Health
Corp
2.63%,
08/15/2024
420‌
448‌
3.00%,
08/15/2026
375‌
410‌
3.25%,
08/15/2029
170‌
188‌
3.50%,
07/20/2022
1,000‌
1,053‌
4.00%,
12/05/2023
70‌
77‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
CVS
Health
Corp  
(continued)
4.10%,
03/25/2025
$
1,000‌
$
1,131‌
4.30%,
03/25/2028
1,000‌
1,170‌
4.78%,
03/25/2038
485‌
603‌
5.05%,
03/25/2048
980‌
1,284‌
5.13%,
07/20/2045
370‌
477‌
5.30%,
12/05/2043
25‌
33‌
Eli
Lilly
and
Co
2.25%,
05/15/2050
390‌
374‌
3.95%,
03/15/2049
400‌
508‌
GlaxoSmithKline
Capital
Inc
3.63%,
05/15/2025
600‌
678‌
3.88%,
05/15/2028
545‌
642‌
5.38%,
04/15/2034
500‌
683‌
GlaxoSmithKline
Capital
PLC
2.85%,
05/08/2022
143‌
149‌
Johnson
&
Johnson
2.45%,
03/01/2026
30‌
33‌
3.50%,
01/15/2048
90‌
112‌
3.63%,
03/03/2037
20‌
24‌
3.70%,
03/01/2046
225‌
281‌
3.75%,
03/03/2047
30‌
38‌
4.95%,
05/15/2033
201‌
276‌
McKesson
Corp
4.88%,
03/15/2044
150‌
181‌
Mead
Johnson
Nutrition
Co
4.60%,
06/01/2044
250‌
318‌
Merck
&
Co
Inc
0.75%,
02/24/2026
80‌
80‌
1.45%,
06/24/2030
365‌
365‌
2.35%,
02/10/2022
800‌
825‌
2.35%,
06/24/2040
285‌
290‌
2.75%,
02/10/2025
385‌
418‌
2.80%,
05/18/2023
230‌
245‌
3.60%,
09/15/2042
100‌
119‌
3.70%,
02/10/2045
10‌
12‌
3.90%,
03/07/2039
115‌
139‌
4.00%,
03/07/2049
170‌
218‌
4.15%,
05/18/2043
200‌
257‌
Mylan
NV
3.95%,
06/15/2026
595‌
665‌
5.25%,
06/15/2046
170‌
211‌
Novartis
Capital
Corp
1.75%,
02/14/2025
325‌
340‌
2.00%,
02/14/2027
325‌
344‌
2.20%,
08/14/2030
160‌
169‌
2.75%,
08/14/2050
160‌
169‌
3.00%,
11/20/2025
500‌
555‌
4.40%,
05/06/2044
350‌
467‌
Pfizer
Inc
0.80%,
05/28/2025
445‌
445‌
1.70%,
05/28/2030
195‌
198‌
2.55%,
05/28/2040
450‌
466‌
2.63%,
04/01/2030
160‌
176‌
2.70%,
05/28/2050
190‌
197‌
3.00%,
06/15/2023
530‌
568‌
3.45%,
03/15/2029
210‌
245‌
4.00%,
03/15/2049
140‌
179‌
4.40%,
05/15/2044
30‌
39‌
5.60%,
09/15/2040
380‌
553‌
7.20%,
03/15/2039
176‌
298‌
Sanofi
3.38%,
06/19/2023
400‌
433‌
3.63%,
06/19/2028
400‌
470‌
Shire
Acquisitions
Investments
Ireland
DAC
2.40%,
09/23/2021
500‌
510‌
3.20%,
09/23/2026
525‌
583‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
82
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Takeda
Pharmaceutical
Co
Ltd
2.05%,
03/31/2030
(h)
$
405‌
$
405‌
3.18%,
07/09/2050
(h)
405‌
404‌
Upjohn
Inc
1.13%,
06/22/2022
(f)
80‌
80‌
2.30%,
06/22/2027
(f)
120‌
124‌
2.70%,
06/22/2030
(f)
160‌
164‌
3.85%,
06/22/2040
(f)
120‌
129‌
4.00%,
06/22/2050
(f)
160‌
170‌
Wyeth
LLC
5.95%,
04/01/2037
91‌
133‌
6.50%,
02/01/2034
144‌
224‌
Zoetis
Inc
2.00%,
05/15/2030
350‌
360‌
3.00%,
05/15/2050
175‌
180‌
3.25%,
02/01/2023
100‌
106‌
3.95%,
09/12/2047
5‌
6‌
$
45,189‌
Pipelines
-
0.83%
Boardwalk
Pipelines
LP
3.38%,
02/01/2023
200‌
201‌
Cheniere
Corpus
Christi
Holdings
LLC
3.70%,
11/15/2029
(f)
310‌
316‌
Columbia
Pipeline
Group
Inc
5.80%,
06/01/2045
250‌
305‌
Enable
Midstream
Partners
LP
5.00%,
05/15/2044
500‌
400‌
Enbridge
Energy
Partners
LP
7.38%,
10/15/2045
100‌
143‌
Enbridge
Inc
2.50%,
01/15/2025
155‌
161‌
3.13%,
11/15/2029
155‌
162‌
5.50%,
12/01/2046
30‌
39‌
Energy
Transfer
Operating
LP
2.90%,
05/15/2025
315‌
322‌
3.60%,
02/01/2023
15‌
16‌
3.75%,
05/15/2030
160‌
159‌
4.75%,
01/15/2026
50‌
54‌
5.20%,
02/01/2022
102‌
107‌
5.25%,
04/15/2029
400‌
438‌
5.30%,
04/15/2047
15‌
15‌
5.95%,
10/01/2043
350‌
359‌
6.13%,
12/15/2045
525‌
541‌
6.25%,
04/15/2049
500‌
530‌
6.50%,
02/01/2042
402‌
435‌
Enterprise
Products
Operating
LLC
2.80%,
01/31/2030
120‌
125‌
3.35%,
03/15/2023
300‌
318‌
3.70%,
02/15/2026
525‌
590‌
3.70%,
01/31/2051
250‌
262‌
3.75%,
02/15/2025
500‌
553‌
3.90%,
02/15/2024
250‌
274‌
4.25%,
02/15/2048
155‌
171‌
4.85%,
08/15/2042
300‌
346‌
4.85%,
03/15/2044
430‌
498‌
4.90%,
05/15/2046
400‌
468‌
6.13%,
10/15/2039
123‌
156‌
6.45%,
09/01/2040
177‌
235‌
6.88%,
03/01/2033
15‌
20‌
Kinder
Morgan
Energy
Partners
LP
3.50%,
09/01/2023
200‌
213‌
4.15%,
03/01/2022
300‌
315‌
4.70%,
11/01/2042
200‌
216‌
5.00%,
03/01/2043
100‌
111‌
5.40%,
09/01/2044
400‌
480‌
6.38%,
03/01/2041
128‌
157‌
6.50%,
09/01/2039
112‌
141‌
6.95%,
01/15/2038
112‌
150‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
Kinder
Morgan
Energy
Partners
LP  
(continued)
7.40%,
03/15/2031
$
177‌
$
230‌
Kinder
Morgan
Inc
3.15%,
01/15/2023
500‌
524‌
4.30%,
06/01/2025
55‌
62‌
5.05%,
02/15/2046
15‌
17‌
5.55%,
06/01/2045
50‌
61‌
MPLX
LP
4.13%,
03/01/2027
425‌
453‌
4.25%,
12/01/2027
400‌
434‌
4.50%,
07/15/2023
30‌
32‌
4.50%,
04/15/2038
220‌
220‌
4.70%,
04/15/2048
185‌
186‌
4.88%,
12/01/2024
30‌
33‌
4.90%,
04/15/2058
60‌
60‌
5.20%,
03/01/2047
330‌
347‌
5.20%,
12/01/2047
200‌
206‌
5.50%,
02/15/2049
170‌
188‌
ONEOK
Inc
2.20%,
09/15/2025
160‌
157‌
2.75%,
09/01/2024
175‌
177‌
3.40%,
09/01/2029
100‌
97‌
4.25%,
02/01/2022
300‌
310‌
4.45%,
09/01/2049
500‌
464‌
ONEOK
Partners
LP
5.00%,
09/15/2023
250‌
270‌
Plains
All
American
Pipeline
LP
/
PAA
Finance
Corp
2.85%,
01/31/2023
200‌
202‌
3.65%,
06/01/2022
128‌
131‌
4.30%,
01/31/2043
200‌
174‌
4.65%,
10/15/2025
15‌
16‌
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
360‌
403‌
5.63%,
03/01/2025
390‌
446‌
5.75%,
05/15/2024
300‌
338‌
5.88%,
06/30/2026
345‌
405‌
Spectra
Energy
Partners
LP
5.95%,
09/25/2043
200‌
251‌
Sunoco
Logistics
Partners
Operations
LP
3.45%,
01/15/2023
200‌
207‌
4.95%,
01/15/2043
200‌
182‌
5.35%,
05/15/2045
15‌
15‌
Texas
Eastern
Transmission
LP
7.00%,
07/15/2032
100‌
134‌
TransCanada
PipeLines
Ltd
4.25%,
05/15/2028
300‌
343‌
4.75%,
05/15/2038
300‌
353‌
4.88%,
05/15/2048
420‌
521‌
5.60%,
03/31/2034
300‌
376‌
6.10%,
06/01/2040
25‌
33‌
7.25%,
08/15/2038
51‌
74‌
Williams
Cos
Inc/The
3.35%,
08/15/2022
15‌
16‌
3.75%,
06/15/2027
400‌
428‌
3.90%,
01/15/2025
350‌
383‌
5.10%,
09/15/2045
180‌
198‌
6.30%,
04/15/2040
343‌
413‌
$
21,072‌
Private
Equity
-
0.01%
Brookfield
Asset
Management
Inc
4.00%,
01/15/2025
300‌
330‌
Regional
Authority
-
0.31%
Province
of
Alberta
Canada
1.00%,
05/20/2025
555‌
560‌
3.30%,
03/15/2028
850‌
986‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
83
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Regional
Authority
(continued)
Province
of
British
Columbia
Canada
2.00%,
10/23/2022
$
450‌
$
467‌
2.65%,
09/22/2021
77‌
79‌
6.50%,
01/15/2026
18‌
23‌
Province
of
Manitoba
Canada
3.05%,
05/14/2024
500‌
545‌
Province
of
Ontario
Canada
1.75%,
01/24/2023
2,015‌
2,080‌
2.50%,
09/10/2021
500‌
512‌
3.20%,
05/16/2024
250‌
275‌
3.40%,
10/17/2023
305‌
334‌
Province
of
Quebec
Canada
1.35%,
05/28/2030
310‌
315‌
1.50%,
02/11/2025
295‌
306‌
2.63%,
02/13/2023
1,000‌
1,056‌
2.75%,
08/25/2021
231‌
237‌
7.50%,
09/15/2029
64‌
99‌
$
7,874‌
REITs
-
0.81%
Alexandria
Real
Estate
Equities
Inc
2.75%,
12/15/2029
80‌
85‌
3.38%,
08/15/2031
115‌
128‌
4.00%,
01/15/2024
250‌
276‌
4.00%,
02/01/2050
85‌
104‌
4.90%,
12/15/2030
80‌
100‌
American
Campus
Communities
Operating
Partnership
LP
2.85%,
02/01/2030
155‌
150‌
3.63%,
11/15/2027
300‌
308‌
American
Tower
Corp
1.30%,
09/15/2025
80‌
80‌
2.90%,
01/15/2030
160‌
171‌
3.38%,
10/15/2026
500‌
556‌
3.50%,
01/31/2023
530‌
566‌
3.70%,
10/15/2049
165‌
179‌
4.70%,
03/15/2022
278‌
297‌
AvalonBay
Communities
Inc
2.30%,
03/01/2030
160‌
168‌
4.20%,
12/15/2023
400‌
440‌
Boston
Properties
LP
2.75%,
10/01/2026
550‌
589‌
Brixmor
Operating
Partnership
LP
3.85%,
02/01/2025
300‌
310‌
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
20‌
22‌
Crown
Castle
International
Corp
1.35%,
07/15/2025
370‌
373‌
3.10%,
11/15/2029
150‌
161‌
3.20%,
09/01/2024
400‌
434‌
3.25%,
01/15/2051
370‌
374‌
3.30%,
07/01/2030
155‌
170‌
4.00%,
11/15/2049
110‌
123‌
5.25%,
01/15/2023
30‌
33‌
Digital
Realty
Trust
LP
4.45%,
07/15/2028
250‌
300‌
Duke
Realty
LP
1.75%,
07/01/2030
160‌
159‌
2.88%,
11/15/2029
75‌
82‌
4.00%,
09/15/2028
400‌
469‌
Equinix
Inc
1.25%,
07/15/2025
160‌
160‌
1.80%,
07/15/2027
160‌
160‌
2.63%,
11/18/2024
155‌
165‌
3.20%,
11/18/2029
260‌
283‌
ERP
Operating
LP
2.50%,
02/15/2030
125‌
134‌
4.63%,
12/15/2021
500‌
524‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
Essex
Portfolio
LP
3.00%,
01/15/2030
$
170‌
$
185‌
4.00%,
03/01/2029
300‌
349‌
4.50%,
03/15/2048
300‌
377‌
Federal
Realty
Investment
Trust
4.50%,
12/01/2044
250‌
281‌
GLP
Capital
LP
/
GLP
Financing
II
Inc
4.00%,
01/15/2030
170‌
169‌
5.38%,
04/15/2026
300‌
328‌
Healthpeak
Properties
Inc
3.00%,
01/15/2030
150‌
157‌
3.40%,
02/01/2025
300‌
323‌
4.20%,
03/01/2024
250‌
272‌
6.75%,
02/01/2041
300‌
420‌
Kimco
Realty
Corp
3.70%,
10/01/2049
330‌
305‌
Mid-America
Apartments
LP
4.00%,
11/15/2025
500‌
555‌
National
Retail
Properties
Inc
4.80%,
10/15/2048
200‌
214‌
Office
Properties
Income
Trust
4.00%,
07/15/2022
400‌
398‌
Omega
Healthcare
Investors
Inc
4.50%,
01/15/2025
300‌
309‌
4.95%,
04/01/2024
750‌
790‌
Prologis
LP
2.13%,
04/15/2027
145‌
153‌
2.25%,
04/15/2030
140‌
147‌
3.00%,
04/15/2050
110‌
116‌
3.88%,
09/15/2028
250‌
296‌
Realty
Income
Corp
4.65%,
08/01/2023
250‌
276‌
Simon
Property
Group
LP
2.00%,
09/13/2024
915‌
939‌
2.45%,
09/13/2029
140‌
138‌
3.25%,
11/30/2026
500‌
540‌
3.25%,
09/13/2049
140‌
131‌
4.25%,
11/30/2046
130‌
141‌
6.75%,
02/01/2040
25‌
35‌
SL
Green
Operating
Partnership
LP
3.25%,
10/15/2022
300‌
299‌
UDR
Inc
3.20%,
01/15/2030
165‌
180‌
4.00%,
10/01/2025
200‌
223‌
Ventas
Realty
LP
3.00%,
01/15/2030
200‌
198‌
3.50%,
04/15/2024
300‌
312‌
5.70%,
09/30/2043
300‌
339‌
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
375‌
361‌
Welltower
Inc
3.63%,
03/15/2024
600‌
641‌
3.75%,
03/15/2023
200‌
212‌
4.13%,
03/15/2029
300‌
334‌
Weyerhaeuser
Co
7.38%,
03/15/2032
300‌
415‌
$
20,491‌
Retail
-
0.81%
AutoZone
Inc
3.75%,
06/01/2027
250‌
280‌
Costco
Wholesale
Corp
1.38%,
06/20/2027
155‌
158‌
1.60%,
04/20/2030
155‌
157‌
1.75%,
04/20/2032
155‌
157‌
2.30%,
05/18/2022
310‌
319‌
2.75%,
05/18/2024
50‌
54‌
3.00%,
05/18/2027
150‌
169‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
84
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Dollar
General
Corp
4.15%,
11/01/2025
$
500‌
$
577‌
Dollar
Tree
Inc
4.20%,
05/15/2028
185‌
215‌
Home
Depot
Inc/The
2.13%,
09/15/2026
250‌
268‌
2.63%,
06/01/2022
30‌
31‌
2.70%,
04/01/2023
30‌
32‌
2.95%,
06/15/2029
435‌
489‌
3.50%,
09/15/2056
305‌
354‌
3.75%,
02/15/2024
380‌
420‌
3.90%,
06/15/2047
30‌
37‌
4.20%,
04/01/2043
20‌
25‌
4.25%,
04/01/2046
590‌
749‌
4.40%,
03/15/2045
20‌
26‌
5.95%,
04/01/2041
351‌
529‌
Kohl's
Corp
5.55%,
07/17/2045
250‌
223‌
Lowe's
Cos
Inc
3.10%,
05/03/2027
530‌
588‌
3.65%,
04/05/2029
465‌
533‌
3.70%,
04/15/2046
40‌
45‌
4.00%,
04/15/2025
160‌
182‌
4.05%,
05/03/2047
30‌
35‌
4.38%,
09/15/2045
500‌
602‌
5.00%,
04/15/2040
160‌
209‌
McDonald's
Corp
1.45%,
09/01/2025
160‌
164‌
2.13%,
03/01/2030
160‌
164‌
2.63%,
09/01/2029
415‌
444‌
3.38%,
05/26/2025
500‌
555‌
3.50%,
07/01/2027
325‌
369‌
3.63%,
09/01/2049
115‌
126‌
3.70%,
02/15/2042
128‌
143‌
4.70%,
12/09/2035
25‌
31‌
4.88%,
07/15/2040
9‌
11‌
4.88%,
12/09/2045
250‌
320‌
6.30%,
10/15/2037
262‌
380‌
O'Reilly
Automotive
Inc
3.85%,
06/15/2023
300‌
316‌
4.35%,
06/01/2028
300‌
350‌
Starbucks
Corp
2.00%,
03/12/2027
160‌
168‌
3.55%,
08/15/2029
500‌
569‌
3.85%,
10/01/2023
530‌
580‌
4.45%,
08/15/2049
300‌
363‌
Target
Corp
2.35%,
02/15/2030
320‌
342‌
2.50%,
04/15/2026
500‌
549‌
2.90%,
01/15/2022
25‌
26‌
3.63%,
04/15/2046
35‌
43‌
TJX
Cos
Inc/The
2.50%,
05/15/2023
500‌
524‌
Walgreens
Boots
Alliance
Inc
3.45%,
06/01/2026
420‌
455‌
3.80%,
11/18/2024
300‌
330‌
4.80%,
11/18/2044
355‌
384‌
Walmart
Inc
2.35%,
12/15/2022
500‌
524‌
2.85%,
07/08/2024
575‌
626‌
2.95%,
09/24/2049
245‌
276‌
3.05%,
07/08/2026
500‌
565‌
3.25%,
07/08/2029
490‌
569‌
3.40%,
06/26/2023
530‌
577‌
3.70%,
06/26/2028
390‌
462‌
3.95%,
06/28/2038
185‌
235‌
5.63%,
04/01/2040
38‌
58‌
5.63%,
04/15/2041
280‌
422‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Walmart
Inc  
(continued)
7.55%,
02/15/2030
$
628‌
$
962‌
$
20,445‌
Semiconductors
-
0.53%
Analog
Devices
Inc
2.50%,
12/05/2021
750‌
768‌
Applied
Materials
Inc
1.75%,
06/01/2030
160‌
164‌
3.30%,
04/01/2027
35‌
40‌
3.90%,
10/01/2025
500‌
576‌
4.35%,
04/01/2047
40‌
51‌
5.10%,
10/01/2035
250‌
348‌
Broadcom
Corp
/
Broadcom
Cayman
Finance
Ltd
3.88%,
01/15/2027
660‌
713‌
Broadcom
Inc
2.25%,
11/15/2023
(f)
90‌
93‌
3.15%,
11/15/2025
(f)
285‌
303‌
3.63%,
10/15/2024
(f)
350‌
380‌
4.15%,
11/15/2030
(f)
285‌
310‌
4.25%,
04/15/2026
(f)
500‌
556‌
4.30%,
11/15/2032
(f)
185‌
203‌
4.75%,
04/15/2029
(f)
730‌
829‌
Intel
Corp
2.45%,
11/15/2029
310‌
335‌
2.60%,
05/19/2026
530‌
580‌
2.70%,
12/15/2022
25‌
27‌
3.15%,
05/11/2027
540‌
606‌
3.25%,
11/15/2049
315‌
356‌
3.30%,
10/01/2021
207‌
215‌
3.40%,
03/25/2025
160‌
180‌
3.73%,
12/08/2047
240‌
285‌
3.75%,
03/25/2027
160‌
186‌
4.00%,
12/15/2032
200‌
246‌
4.25%,
12/15/2042
200‌
252‌
4.60%,
03/25/2040
160‌
211‌
4.80%,
10/01/2041
77‌
103‌
4.90%,
07/29/2045
25‌
35‌
KLA
Corp
4.65%,
11/01/2024
500‌
573‌
Lam
Research
Corp
1.90%,
06/15/2030
155‌
158‌
2.88%,
06/15/2050
235‌
242‌
Marvell
Technology
Group
Ltd
4.88%,
06/22/2028
300‌
361‌
Micron
Technology
Inc
2.50%,
04/24/2023
90‌
94‌
4.19%,
02/15/2027
115‌
127‌
4.66%,
02/15/2030
115‌
134‌
NVIDIA
Corp
2.20%,
09/16/2021
500‌
510‌
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
3.15%,
05/01/2027
(f)
80‌
85‌
QUALCOMM
Inc
2.60%,
01/30/2023
360‌
378‌
3.00%,
05/20/2022
30‌
31‌
3.25%,
05/20/2027
320‌
363‌
3.45%,
05/20/2025
300‌
334‌
4.65%,
05/20/2035
115‌
153‌
4.80%,
05/20/2045
175‌
229‌
Texas
Instruments
Inc
1.38%,
03/12/2025
160‌
164‌
1.75%,
05/04/2030
245‌
249‌
4.15%,
05/15/2048
205‌
264‌
$
13,400‌
Software
-
0.68%
Adobe
Inc
1.90%,
02/01/2025
315‌
333‌
2.30%,
02/01/2030
160‌
173‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
85
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Software
(continued)
Fidelity
National
Information
Services
Inc
3.00%,
08/15/2026
$
40‌
$
44‌
3.50%,
04/15/2023
30‌
32‌
3.75%,
05/21/2029
400‌
469‌
Fiserv
Inc
3.50%,
10/01/2022
600‌
634‌
3.50%,
07/01/2029
310‌
348‌
3.80%,
10/01/2023
400‌
437‌
3.85%,
06/01/2025
300‌
339‌
Intuit
Inc
1.35%,
07/15/2027
165‌
166‌
Microsoft
Corp
1.55%,
08/08/2021
670‌
679‌
2.38%,
02/12/2022
380‌
392‌
2.40%,
02/06/2022
690‌
712‌
2.40%,
08/08/2026
55‌
60‌
2.53%,
06/01/2050
67‌
70‌
2.68%,
06/01/2060
1,209‌
1,258‌
3.13%,
11/03/2025
700‌
785‌
3.30%,
02/06/2027
200‌
229‌
3.45%,
08/08/2036
750‌
906‌
3.63%,
12/15/2023
30‌
33‌
3.70%,
08/08/2046
950‌
1,183‌
4.10%,
02/06/2037
113‌
146‌
4.20%,
11/03/2035
430‌
560‌
Oracle
Corp
2.40%,
09/15/2023
30‌
31‌
2.50%,
05/15/2022
30‌
31‌
2.50%,
10/15/2022
1,070‌
1,119‌
2.50%,
04/01/2025
150‌
161‌
2.63%,
02/15/2023
390‌
410‌
2.65%,
07/15/2026
700‌
757‌
2.80%,
07/08/2021
80‌
82‌
2.80%,
04/01/2027
850‌
928‌
2.95%,
04/01/2030
150‌
167‌
3.60%,
04/01/2040
150‌
170‌
3.60%,
04/01/2050
150‌
167‌
3.80%,
11/15/2037
250‌
288‌
4.00%,
07/15/2046
780‌
922‌
4.30%,
07/08/2034
1,015‌
1,259‌
4.38%,
05/15/2055
610‌
765‌
$
17,245‌
Sovereign
-
1.64%
Canada
Government
International
Bond
1.63%,
01/22/2025
1,065‌
1,124‌
Chile
Government
International
Bond
2.45%,
01/31/2031
535‌
554‌
2.55%,
01/27/2032
475‌
494‌
3.13%,
03/27/2025
250‌
270‌
3.25%,
09/14/2021
180‌
185‌
Colombia
Government
International
Bond
2.63%,
03/15/2023
500‌
507‌
3.00%,
01/30/2030
315‌
312‌
3.13%,
04/15/2031
325‌
323‌
4.38%,
07/12/2021
100‌
103‌
4.50%,
01/28/2026
700‌
758‌
5.20%,
05/15/2049
900‌
1,057‌
6.13%,
01/18/2041
200‌
250‌
8.13%,
05/21/2024
201‌
242‌
10.38%,
01/28/2033
100‌
151‌
Export
Development
Canada
1.38%,
02/24/2023
250‌
257‌
2.00%,
05/17/2022
1,500‌
1,547‌
Export-Import
Bank
of
Korea
3.00%,
11/01/2022
500‌
523‌
3.25%,
11/10/2025
500‌
558‌
3.25%,
08/12/2026
500‌
563‌
5.00%,
04/11/2022
200‌
215‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Hungary
Government
International
Bond
7.63%,
03/29/2041
$
250‌
$
418‌
Indonesia
Government
International
Bond
2.85%,
02/14/2030
800‌
817‌
3.50%,
01/11/2028
200‌
213‌
3.70%,
10/30/2049
200‌
208‌
4.20%,
10/15/2050
500‌
558‌
4.75%,
02/11/2029
200‌
232‌
Israel
Government
AID
Bond
5.50%,
09/18/2023
25‌
29‌
5.50%,
04/26/2024
125‌
148‌
5.50%,
09/18/2033
12‌
18‌
Israel
Government
International
Bond
3.88%,
07/03/2050
200‌
237‌
4.00%,
06/30/2022
500‌
532‌
4.13%,
01/17/2048
300‌
372‌
Japan
Bank
for
International
Cooperation
0.63%,
05/22/2023
200‌
201‌
1.63%,
10/17/2022
900‌
923‌
2.00%,
10/17/2029
200‌
217‌
2.38%,
04/20/2026
300‌
327‌
2.50%,
06/01/2022
500‌
519‌
3.00%,
05/29/2024
(e)
1,000‌
1,092‌
3.38%,
07/31/2023
1,000‌
1,086‌
Korea
International
Bond
3.88%,
09/11/2023
250‌
274‌
3.88%,
09/20/2048
500‌
682‌
Mexico
Government
International
Bond
3.25%,
04/16/2030
200‌
198‌
3.60%,
01/30/2025
210‌
223‌
3.63%,
03/15/2022
300‌
312‌
3.75%,
01/11/2028
500‌
520‌
3.90%,
04/27/2025
600‌
642‌
4.50%,
04/22/2029
1,000‌
1,086‌
4.50%,
01/31/2050
800‌
825‌
4.60%,
02/10/2048
700‌
726‌
4.75%,
03/08/2044
506‌
536‌
5.55%,
01/21/2045
300‌
354‌
6.05%,
01/11/2040
464‌
566‌
Panama
Government
International
Bond
3.75%,
03/16/2025
800‌
865‌
3.88%,
03/17/2028
500‌
562‌
4.50%,
04/16/2050
400‌
489‌
6.70%,
01/26/2036
224‌
322‌
Peruvian
Government
International
Bond
5.63%,
11/18/2050
528‌
833‌
6.55%,
03/14/2037
126‌
192‌
7.35%,
07/21/2025
180‌
229‌
8.75%,
11/21/2033
192‌
320‌
Philippine
Government
International
Bond
2.46%,
05/05/2030
200‌
210‌
2.95%,
05/05/2045
200‌
207‌
3.00%,
02/01/2028
300‌
324‌
3.70%,
02/02/2042
230‌
263‌
5.00%,
01/13/2037
300‌
386‌
6.38%,
10/23/2034
210‌
302‌
9.50%,
02/02/2030
400‌
650‌
10.63%,
03/16/2025
400‌
559‌
Republic
of
Italy
Government
International
Bond
2.38%,
10/17/2024
200‌
202‌
2.88%,
10/17/2029
200‌
199‌
5.38%,
06/15/2033
420‌
523‌
6.88%,
09/27/2023
512‌
592‌
Republic
of
Poland
Government
International
Bond
4.00%,
01/22/2024
1,000‌
1,109‌
5.00%,
03/23/2022
528‌
566‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
86
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
State
of
Israel
2.50%,
01/15/2030
$
200‌
$
216‌
3.38%,
01/15/2050
800‌
876‌
Svensk
Exportkredit
AB
2.38%,
03/09/2022
1,000‌
1,034‌
2.88%,
03/14/2023
(e)
200‌
213‌
Tennessee
Valley
Authority
2.88%,
02/01/2027
250‌
283‌
3.50%,
12/15/2042
400‌
504‌
4.25%,
09/15/2065
200‌
300‌
4.63%,
09/15/2060
300‌
471‌
5.25%,
09/15/2039
251‌
387‌
5.38%,
04/01/2056
154‌
264‌
6.75%,
11/01/2025
102‌
135‌
Uruguay
Government
International
Bond
4.13%,
11/20/2045
100‌
115‌
4.38%,
10/27/2027
390‌
446‌
4.98%,
04/20/2055
210‌
269‌
5.10%,
06/18/2050
725‌
935‌
$
41,436‌
Supranational
Bank
-
1.39%
African
Development
Bank
2.38%,
09/23/2021
400‌
410‌
Asian
Development
Bank
1.88%,
02/18/2022
1,250‌
1,283‌
2.13%,
11/24/2021
750‌
769‌
2.13%,
03/19/2025
300‌
323‌
2.63%,
01/30/2024
2,500‌
2,701‌
2.75%,
03/17/2023
400‌
426‌
5.82%,
06/16/2028
15‌
20‌
6.38%,
10/01/2028
51‌
72‌
Asian
Infrastructure
Investment
Bank/The
2.25%,
05/16/2024
500‌
535‌
Corp
Andina
de
Fomento
3.25%,
02/11/2022
900‌
923‌
4.38%,
06/15/2022
22‌
23‌
Council
Of
Europe
Development
Bank
1.38%,
02/27/2025
320‌
333‌
European
Bank
for
Reconstruction
&
Development
0.25%,
07/10/2023
(h)
330‌
330‌
1.63%,
09/27/2024
650‌
682‌
1.88%,
02/23/2022
250‌
257‌
European
Investment
Bank
1.63%,
03/14/2025
315‌
332‌
1.88%,
02/10/2025
1,250‌
1,333‌
2.25%,
03/15/2022
400‌
414‌
2.25%,
08/15/2022
750‌
782‌
2.25%,
06/24/2024
500‌
537‌
2.38%,
05/24/2027
300‌
335‌
2.50%,
03/15/2023
600‌
636‌
2.63%,
05/20/2022
900‌
940‌
2.63%,
03/15/2024
1,000‌
1,083‌
3.25%,
01/29/2024
2,350‌
2,595‌
4.88%,
02/15/2036
25‌
38‌
FMS
Wertmanagement
2.75%,
01/30/2024
500‌
542‌
Inter-American
Development
Bank
1.75%,
04/14/2022
1,000‌
1,026‌
1.75%,
03/14/2025
585‌
620‌
2.13%,
01/18/2022
340‌
350‌
2.38%,
07/07/2027
500‌
556‌
2.50%,
01/18/2023
1,450‌
1,531‌
3.00%,
10/04/2023
700‌
760‌
3.00%,
02/21/2024
250‌
275‌
3.13%,
09/18/2028
500‌
591‌
4.38%,
01/24/2044
50‌
77‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Supranational
Bank
(continued)
International
Bank
for
Reconstruction
&
Development
1.38%,
09/20/2021
$
500‌
$
507‌
1.63%,
02/10/2022
1,000‌
1,022‌
1.63%,
01/15/2025
475‌
500‌
1.75%,
10/23/2029
1,530‌
1,651‌
2.50%,
11/25/2024
500‌
545‌
2.50%,
07/29/2025
1,700‌
1,870‌
2.50%,
11/22/2027
500‌
565‌
7.63%,
01/19/2023
1,512‌
1,792‌
International
Finance
Corp
1.13%,
07/20/2021
1,500‌
1,512‌
Nordic
Investment
Bank
1.38%,
10/17/2022
(e)
200‌
205‌
2.25%,
05/21/2024
500‌
535‌
$
35,144‌
Telecommunications
-
1.26%
America
Movil
SAB
de
CV
3.13%,
07/16/2022
600‌
621‌
6.13%,
03/30/2040
102‌
145‌
6.38%,
03/01/2035
200‌
291‌
AT&T
Inc
2.30%,
06/01/2027
465‌
481‌
2.63%,
12/01/2022
630‌
657‌
2.75%,
06/01/2031
310‌
323‌
2.95%,
07/15/2026
20‌
22‌
3.00%,
06/30/2022
200‌
209‌
3.40%,
05/15/2025
200‌
220‌
3.50%,
06/01/2041
310‌
325‌
3.60%,
07/15/2025
500‌
555‌
3.65%,
06/01/2051
755‌
791‌
3.80%,
02/15/2027
40‌
45‌
4.00%,
01/15/2022
180‌
189‌
4.05%,
12/15/2023
500‌
556‌
4.10%,
02/15/2028
81‌
93‌
4.13%,
02/17/2026
30‌
34‌
4.25%,
03/01/2027
530‌
604‌
4.30%,
12/15/2042
221‌
247‌
4.35%,
03/01/2029
500‌
583‌
4.35%,
06/15/2045
1,005‌
1,131‌
4.50%,
03/09/2048
572‌
676‌
4.55%,
03/09/2049
247‌
291‌
4.65%,
06/01/2044
500‌
572‌
4.75%,
05/15/2046
230‌
276‌
4.85%,
07/15/2045
60‌
71‌
5.15%,
03/15/2042
30‌
37‌
5.15%,
11/15/2046
420‌
520‌
5.35%,
09/01/2040
30‌
38‌
5.38%,
10/15/2041
128‌
161‌
5.45%,
03/01/2047
30‌
39‌
5.65%,
02/15/2047
15‌
20‌
5.70%,
03/01/2057
530‌
726‌
6.00%,
08/15/2040
663‌
899‌
British
Telecommunications
PLC
9.62%,
12/15/2030
577‌
941‌
Cisco
Systems
Inc
1.85%,
09/20/2021
350‌
356‌
2.20%,
09/20/2023
30‌
32‌
2.50%,
09/20/2026
30‌
33‌
Corning
Inc
4.38%,
11/15/2057
300‌
345‌
4.75%,
03/15/2042
102‌
121‌
Deutsche
Telekom
International
Finance
BV
8.75%,
06/15/2030
641‌
1,003‌
Motorola
Solutions
Inc
4.00%,
09/01/2024
500‌
552‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
87
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Orange
SA
4.13%,
09/14/2021
$
128‌
$
134‌
5.38%,
01/13/2042
102‌
143‌
Rogers
Communications
Inc
3.00%,
03/15/2023
400‌
426‌
3.70%,
11/15/2049
225‌
248‌
5.00%,
03/15/2044
500‌
638‌
Telefonica
Emisiones
SA
5.21%,
03/08/2047
530‌
660‌
7.05%,
06/20/2036
795‌
1,154‌
TELUS
Corp
4.60%,
11/16/2048
300‌
375‌
T-Mobile
USA
Inc
1.50%,
02/15/2026
(f)
320‌
320‌
2.05%,
02/15/2028
(f)
320‌
320‌
2.55%,
02/15/2031
(f)
320‌
321‌
3.50%,
04/15/2025
(f)
150‌
163‌
3.75%,
04/15/2027
(f)
295‌
327‌
3.88%,
04/15/2030
(f)
295‌
328‌
4.38%,
04/15/2040
(f)
150‌
174‌
4.50%,
04/15/2050
(f)
295‌
351‌
Verizon
Communications
Inc
2.63%,
08/15/2026
25‌
27‌
2.95%,
03/15/2022
746‌
778‌
3.38%,
02/15/2025
40‌
45‌
3.85%,
11/01/2042
275‌
335‌
3.88%,
02/08/2029
400‌
473‌
4.13%,
03/16/2027
500‌
590‌
4.33%,
09/21/2028
500‌
602‌
4.40%,
11/01/2034
750‌
934‌
4.50%,
08/10/2033
360‌
448‌
4.81%,
03/15/2039
1,225‌
1,600‌
5.01%,
04/15/2049
540‌
753‌
5.15%,
09/15/2023
615‌
700‌
Vodafone
Group
PLC
4.25%,
09/17/2050
165‌
196‌
4.38%,
05/30/2028
560‌
666‌
5.00%,
05/30/2038
250‌
314‌
5.25%,
05/30/2048
400‌
522‌
6.15%,
02/27/2037
201‌
281‌
6.25%,
11/30/2032
500‌
687‌
$
31,864‌
Toys,
Games
&
Hobbies
-
0.00%
Hasbro
Inc
6.35%,
03/15/2040
25‌
29‌
Transportation
-
0.53%
Burlington
Northern
Santa
Fe
LLC
3.05%,
02/15/2051
1,000‌
1,088‌
3.55%,
02/15/2050
115‌
133‌
4.45%,
03/15/2043
20‌
25‌
4.55%,
09/01/2044
15‌
20‌
5.15%,
09/01/2043
350‌
482‌
Canadian
National
Railway
Co
2.45%,
05/01/2050
65‌
63‌
3.20%,
08/02/2046
400‌
442‌
3.65%,
02/03/2048
75‌
88‌
Canadian
Pacific
Railway
Co
4.00%,
06/01/2028
300‌
348‌
4.80%,
09/15/2035
500‌
647‌
CSX
Corp
2.40%,
02/15/2030
65‌
68‌
2.60%,
11/01/2026
300‌
325‌
3.25%,
06/01/2027
40‌
45‌
3.35%,
11/01/2025
500‌
561‌
3.35%,
09/15/2049
70‌
77‌
3.80%,
03/01/2028
100‌
115‌
3.80%,
11/01/2046
30‌
35‌
4.25%,
11/01/2066
400‌
485‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Transportation
(continued)
CSX
Corp  
(continued)
4.30%,
03/01/2048
$
105‌
$
131‌
4.75%,
05/30/2042
277‌
354‌
FedEx
Corp
3.10%,
08/05/2029
550‌
587‌
3.88%,
08/01/2042
100‌
100‌
4.40%,
01/15/2047
55‌
58‌
4.55%,
04/01/2046
400‌
431‌
4.75%,
11/15/2045
525‌
579‌
Kansas
City
Southern
4.70%,
05/01/2048
300‌
378‌
Norfolk
Southern
Corp
2.55%,
11/01/2029
155‌
165‌
3.25%,
12/01/2021
251‌
259‌
3.85%,
01/15/2024
200‌
221‌
3.94%,
11/01/2047
398‌
468‌
4.84%,
10/01/2041
100‌
130‌
Ryder
System
Inc
2.50%,
09/01/2024
80‌
83‌
2.90%,
12/01/2026
150‌
155‌
Union
Pacific
Corp
2.15%,
02/05/2027
230‌
244‌
3.15%,
03/01/2024
400‌
434‌
3.55%,
08/15/2039
80‌
90‌
3.80%,
10/01/2051
577‌
686‌
3.84%,
03/20/2060
225‌
260‌
3.95%,
09/10/2028
210‌
249‌
4.15%,
01/15/2045
350‌
421‌
4.16%,
07/15/2022
256‌
272‌
United
Parcel
Service
Inc
2.45%,
10/01/2022
10‌
10‌
2.50%,
09/01/2029
125‌
136‌
3.40%,
09/01/2049
470‌
517‌
3.90%,
04/01/2025
665‌
755‌
4.88%,
11/15/2040
25‌
33‌
5.20%,
04/01/2040
125‌
173‌
6.20%,
01/15/2038
23‌
35‌
$
13,461‌
Water
-
0.04%
American
Water
Capital
Corp
3.75%,
09/01/2047
180‌
209‌
4.15%,
06/01/2049
650‌
806‌
6.59%,
10/15/2037
5‌
7‌
$
1,022‌
TOTAL
BONDS
$
790,840‌
MUNICIPAL
BONDS
-
0.70%
Principal
Amount
(000's)
Value
(000's)
California
-
0.23%
Bay
Area
Toll
Authority
6.26%,
04/01/2049
$
300‌
$
523‌
6.92%,
04/01/2040
120‌
190‌
California
State
University
2.98%,
11/01/2051
160‌
171‌
East
Bay
Municipal
Utility
District
Water
System
Revenue
5.87%,
06/01/2040
60‌
90‌
Los
Angeles
Department
of
Water
&
Power
Power
System
Revenue
6.57%,
07/01/2045
150‌
258‌
Los
Angeles
Unified
School
District/CA
5.75%,
07/01/2034
80‌
111‌
5.76%,
07/01/2029
50‌
64‌
6.76%,
07/01/2034
530‌
784‌
Regents
of
the
University
of
California
Medical
Center
Pooled
Revenue
6.55%,
05/15/2048
250‌
400‌
San
Diego
County
Water
Authority
6.14%,
05/01/2049
260‌
403‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
88
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
California
(continued)
Santa
Clara
Valley
Transportation
Authority
5.88%,
04/01/2032
$
25‌
$
32‌
State
of
California
3.50%,
04/01/2028
165‌
192‌
7.30%,
10/01/2039
375‌
627‌
7.35%,
11/01/2039
500‌
841‌
7.60%,
11/01/2040
180‌
330‌
7.63%,
03/01/2040
280‌
494‌
University
of
California
5.77%,
05/15/2043
200‌
298‌
$
5,808‌
District
of
Columbia
-
0.03%
District
of
Columbia
Water
&
Sewer
Authority
4.81%,
10/01/2114
450‌
645‌
Georgia
-
0.02%
Municipal
Electric
Authority
of
Georgia
6.64%,
04/01/2057
149‌
217‌
7.06%,
04/01/2057
197‌
283‌
$
500‌
Illinois
-
0.06%
Chicago
Transit
Authority
6.20%,
12/01/2040
70‌
95‌
6.90%,
12/01/2040
200‌
275‌
County
of
Cook
IL
6.23%,
11/15/2034
102‌
144‌
State
of
Illinois
4.95%,
06/01/2023
21‌
22‌
5.10%,
06/01/2033
1,000‌
1,014‌
7.35%,
07/01/2035
70‌
79‌
$
1,629‌
Kansas
-
0.01%
State
of
Kansas
Department
of
Transportation
4.60%,
09/01/2035
115‌
147‌
Massachusetts
-
0.01%
Commonwealth
of
Massachusetts
4.20%,
12/01/2021
270‌
277‌
Nevada
-
0.00%
County
of
Clark
Department
of
Aviation
6.82%,
07/01/2045
25‌
39‌
New
Jersey
-
0.07%
New
Jersey
Economic
Development
Authority
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
0.00%,
02/15/2023
(d),(k)
51‌
49‌
New
Jersey
Economic
Development
Authority
(credit
support
from
National
Public
Finance
Guarantee
Corp
)
7.43%,
02/15/2029
(k)
700‌
846‌
New
Jersey
Transportation
Trust
Fund
Authority
5.75%,
12/15/2028
190‌
207‌
6.56%,
12/15/2040
210‌
254‌
New
Jersey
Turnpike
Authority
7.10%,
01/01/2041
147‌
243‌
Rutgers
The
State
University
of
New
Jersey
5.67%,
05/01/2040
130‌
174‌
$
1,773‌
New
York
-
0.11%
City
of
New
York
NY
5.52%,
10/01/2037
25‌
35‌
Metropolitan
Transportation
Authority
6.81%,
11/15/2040
135‌
176‌
New
York
City
Transitional
Finance
Authority
Future
Tax
Secured
Revenue
5.51%,
08/01/2037
250‌
350‌
New
York
City
Water
&
Sewer
System
5.72%,
06/15/2042
270‌
417‌
5.95%,
06/15/2042
125‌
192‌
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
New
York
(continued)
New
York
State
Dormitory
Authority
5.60%,
03/15/2040
$
435‌
$
620‌
Port
Authority
of
New
York
&
New
Jersey
4.46%,
10/01/2062
400‌
531‌
4.96%,
08/01/2046
300‌
416‌
6.04%,
12/01/2029
50‌
68‌
$
2,805‌
Ohio
-
0.01%
American
Municipal
Power
Inc
6.27%,
02/15/2050
69‌
97‌
Ohio
State
University/The
4.91%,
06/01/2040
125‌
178‌
$
275‌
Pennsylvania
-
0.02%
State
Public
School
Building
Authority
5.00%,
09/15/2027
500‌
597‌
Texas
-
0.10%
City
of
San
Antonio
TX
Electric
&
Gas
Systems
Revenue
5.81%,
02/01/2041
135‌
202‌
Dallas
Area
Rapid
Transit
5.02%,
12/01/2048
50‌
76‌
Dallas
Convention
Center
Hotel
Development
Corp
7.09%,
01/01/2042
70‌
88‌
Dallas
County
Hospital
District
5.62%,
08/15/2044
83‌
121‌
Dallas
Independent
School
District
(credit
support
from
Permanent
School
Fund
Guarantee
Program
)
6.45%,
02/15/2035
(k)
50‌
51‌
Grand
Parkway
Transportation
Corp
5.18%,
10/01/2042
300‌
429‌
State
of
Texas
4.68%,
04/01/2040
100‌
132‌
5.52%,
04/01/2039
405‌
588‌
Texas
Transportation
Commission
State
Highway
Fund
5.18%,
04/01/2030
625‌
801‌
$
2,488‌
Utah
-
0.01%
State
of
Utah
3.54%,
07/01/2025
300‌
321‌
Wisconsin
-
0.02%
State
of
Wisconsin
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
5.70%,
05/01/2026
(k)
330‌
379‌
TOTAL
MUNICIPAL
BONDS
$
17,683‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
64.97%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
4.00%
2.00%,
08/01/2029
$
433‌
$
450‌
2.00%,
10/01/2031
94‌
97‌
2.00%,
03/01/2032
178‌
185‌
2.50%,
10/01/2027
140‌
147‌
2.50%,
03/01/2028
285‌
299‌
2.50%,
06/01/2028
158‌
166‌
2.50%,
06/01/2028
383‌
402‌
2.50%,
07/01/2028
261‌
274‌
2.50%,
10/01/2028
150‌
157‌
2.50%,
10/01/2028
131‌
137‌
2.50%,
10/01/2029
353‌
371‌
2.50%,
12/01/2029
418‌
438‌
2.50%,
09/01/2030
707‌
742‌
2.50%,
01/01/2031
755‌
793‌
2.50%,
01/01/2031
96‌
100‌
2.50%,
02/01/2031
83‌
87‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
89
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
2.50%,
03/01/2031
$
243‌
$
255‌
2.50%,
12/01/2031
244‌
256‌
2.50%,
12/01/2031
267‌
280‌
2.50%,
02/01/2032
304‌
319‌
2.50%,
03/01/2032
396‌
416‌
2.50%,
11/01/2032
765‌
803‌
2.50%,
02/01/2033
242‌
254‌
2.50%,
03/01/2033
139‌
146‌
2.50%,
03/01/2033
703‌
737‌
2.50%,
04/01/2033
294‌
309‌
2.50%,
05/01/2033
136‌
143‌
2.50%,
06/01/2033
214‌
225‌
2.50%,
11/01/2036
165‌
173‌
2.50%,
02/01/2043
163‌
173‌
2.50%,
03/01/2043
128‌
136‌
3.00%,
01/01/2027
117‌
123‌
3.00%,
03/01/2027
93‌
98‌
3.00%,
05/01/2027
87‌
92‌
3.00%,
10/01/2028
292‌
307‌
3.00%,
07/01/2029
362‌
381‌
3.00%,
08/01/2029
156‌
164‌
3.00%,
10/01/2029
94‌
99‌
3.00%,
11/01/2029
159‌
168‌
3.00%,
07/01/2030
361‌
381‌
3.00%,
09/01/2030
484‌
510‌
3.00%,
11/01/2030
78‌
82‌
3.00%,
11/01/2030
147‌
154‌
3.00%,
01/01/2031
172‌
181‌
3.00%,
04/01/2031
233‌
246‌
3.00%,
02/01/2032
72‌
76‌
3.00%,
05/01/2032
116‌
124‌
3.00%,
12/01/2032
636‌
669‌
3.00%,
12/01/2032
568‌
597‌
3.00%,
01/01/2033
911‌
958‌
3.00%,
02/01/2033
532‌
560‌
3.00%,
03/01/2033
345‌
367‌
3.00%,
04/01/2033
203‌
216‌
3.00%,
04/01/2033
182‌
194‌
3.00%,
06/01/2033
124‌
133‌
3.00%,
09/01/2033
170‌
182‌
3.00%,
09/01/2033
178‌
190‌
3.00%,
12/01/2034
58‌
62‌
3.00%,
01/01/2035
39‌
41‌
3.00%,
02/01/2035
56‌
60‌
3.00%,
05/01/2035
490‌
521‌
3.00%,
02/01/2036
107‌
114‌
3.00%,
09/01/2036
91‌
97‌
3.00%,
02/01/2037
127‌
134‌
3.00%,
05/01/2037
183‌
193‌
3.00%,
06/01/2037
192‌
204‌
3.00%,
07/01/2037
312‌
330‌
3.00%,
09/01/2037
65‌
69‌
3.00%,
01/01/2043
205‌
222‌
3.00%,
01/01/2043
312‌
334‌
3.00%,
02/01/2043
1,183‌
1,268‌
3.00%,
03/01/2043
772‌
828‌
3.00%,
04/01/2043
277‌
297‌
3.00%,
05/01/2043
281‌
301‌
3.00%,
06/01/2043
529‌
566‌
3.00%,
07/01/2043
864‌
926‌
3.00%,
07/01/2043
404‌
433‌
3.00%,
07/01/2043
486‌
521‌
3.00%,
07/01/2043
829‌
889‌
3.00%,
08/01/2043
99‌
106‌
3.00%,
08/01/2043
153‌
164‌
3.00%,
08/01/2043
1,451‌
1,555‌
3.00%,
08/01/2043
257‌
275‌
3.00%,
09/01/2043
371‌
397‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.00%,
09/01/2043
$
238‌
$
255‌
3.00%,
09/01/2043
517‌
554‌
3.00%,
10/01/2043
143‌
153‌
3.00%,
10/01/2043
448‌
480‌
3.00%,
03/01/2045
635‌
676‌
3.00%,
04/01/2045
212‌
225‌
3.00%,
06/01/2045
751‌
798‌
3.00%,
07/01/2045
446‌
475‌
3.00%,
07/01/2045
444‌
472‌
3.00%,
08/01/2045
824‌
874‌
3.00%,
08/01/2045
262‌
277‌
3.00%,
08/01/2045
212‌
225‌
3.00%,
12/01/2045
1,235‌
1,310‌
3.00%,
03/01/2046
564‌
598‌
3.00%,
03/01/2046
167‌
176‌
3.00%,
04/01/2046
797‌
845‌
3.00%,
04/01/2046
89‌
94‌
3.00%,
05/01/2046
192‌
204‌
3.00%,
09/01/2046
890‌
943‌
3.00%,
10/01/2046
694‌
738‌
3.00%,
11/01/2046
1,381‌
1,456‌
3.00%,
11/01/2046
139‌
147‌
3.00%,
11/01/2046
830‌
877‌
3.00%,
11/01/2046
986‌
1,044‌
3.00%,
12/01/2046
998‌
1,056‌
3.00%,
12/01/2046
1,181‌
1,248‌
3.00%,
01/01/2047
1,575‌
1,665‌
3.00%,
03/01/2047
1,468‌
1,552‌
3.00%,
03/01/2048
749‌
789‌
3.50%,
10/01/2025
99‌
104‌
3.50%,
11/01/2025
133‌
140‌
3.50%,
12/01/2026
130‌
138‌
3.50%,
01/01/2029
117‌
123‌
3.50%,
01/01/2032
96‌
103‌
3.50%,
02/01/2032
60‌
64‌
3.50%,
03/01/2032
74‌
79‌
3.50%,
04/01/2032
71‌
76‌
3.50%,
08/01/2032
58‌
62‌
3.50%,
09/01/2033
332‌
349‌
3.50%,
01/01/2034
64‌
68‌
3.50%,
01/01/2035
135‌
144‌
3.50%,
02/01/2035
117‌
125‌
3.50%,
07/01/2035
168‌
180‌
3.50%,
09/01/2035
298‌
318‌
3.50%,
04/01/2037
88‌
94‌
3.50%,
06/01/2037
206‌
218‌
3.50%,
05/01/2041
263‌
278‌
3.50%,
02/01/2042
378‌
409‌
3.50%,
04/01/2042
105‌
113‌
3.50%,
06/01/2042
233‌
253‌
3.50%,
07/01/2042
390‌
422‌
3.50%,
07/01/2042
298‌
321‌
3.50%,
08/01/2042
170‌
184‌
3.50%,
08/01/2042
380‌
411‌
3.50%,
02/01/2044
501‌
538‌
3.50%,
06/01/2044
600‌
643‌
3.50%,
09/01/2044
328‌
352‌
3.50%,
02/01/2045
357‌
383‌
3.50%,
03/01/2045
518‌
554‌
3.50%,
06/01/2045
583‌
624‌
3.50%,
07/01/2045
987‌
1,051‌
3.50%,
09/01/2045
549‌
586‌
3.50%,
10/01/2045
624‌
666‌
3.50%,
11/01/2045
1,001‌
1,071‌
3.50%,
12/01/2045
795‌
848‌
3.50%,
12/01/2045
94‌
99‌
3.50%,
12/01/2045
612‌
656‌
3.50%,
01/01/2046
109‌
117‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
90
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.50%,
01/01/2046
$
281‌
$
300‌
3.50%,
03/01/2046
2,627‌
2,805‌
3.50%,
03/01/2046
513‌
549‌
3.50%,
04/01/2046
638‌
681‌
3.50%,
05/01/2046
694‌
740‌
3.50%,
06/01/2046
774‌
826‌
3.50%,
08/01/2046
536‌
573‌
3.50%,
04/01/2047
924‌
976‌
3.50%,
11/01/2047
946‌
999‌
3.50%,
11/01/2047
728‌
771‌
3.50%,
05/01/2048
135‌
142‌
3.50%,
06/01/2048
474‌
502‌
3.50%,
06/01/2048
427‌
452‌
3.50%,
09/01/2048
327‌
356‌
4.00%,
06/01/2025
91‌
96‌
4.00%,
07/01/2025
113‌
120‌
4.00%,
12/01/2030
31‌
33‌
4.00%,
08/01/2031
32‌
35‌
4.00%,
10/01/2031
44‌
48‌
4.00%,
11/01/2031
14‌
15‌
4.00%,
12/01/2031
22‌
24‌
4.00%,
11/01/2033
64‌
69‌
4.00%,
01/01/2034
104‌
112‌
4.00%,
07/01/2035
44‌
48‌
4.00%,
03/01/2037
180‌
194‌
4.00%,
05/01/2038
92‌
99‌
4.00%,
02/01/2041
201‌
220‌
4.00%,
06/01/2042
129‌
142‌
4.00%,
06/01/2042
103‌
113‌
4.00%,
08/01/2043
700‌
769‌
4.00%,
01/01/2044
142‌
155‌
4.00%,
02/01/2044
312‌
343‌
4.00%,
03/01/2044
106‌
116‌
4.00%,
04/01/2044
402‌
439‌
4.00%,
05/01/2044
103‌
113‌
4.00%,
07/01/2044
244‌
264‌
4.00%,
07/01/2044
337‌
369‌
4.00%,
10/01/2044
278‌
302‌
4.00%,
11/01/2044
556‌
607‌
4.00%,
12/01/2044
603‌
655‌
4.00%,
01/01/2045
169‌
184‌
4.00%,
02/01/2045
229‌
247‌
4.00%,
04/01/2045
206‌
223‌
4.00%,
05/01/2045
113‌
122‌
4.00%,
06/01/2045
232‌
250‌
4.00%,
07/01/2045
342‌
370‌
4.00%,
08/01/2045
94‌
102‌
4.00%,
08/01/2045
832‌
899‌
4.00%,
08/01/2045
95‌
103‌
4.00%,
09/01/2045
130‌
140‌
4.00%,
09/01/2045
1,000‌
1,082‌
4.00%,
10/01/2045
1,016‌
1,095‌
4.00%,
11/01/2045
607‌
655‌
4.00%,
12/01/2045
273‌
296‌
4.00%,
03/01/2047
857‌
918‌
4.00%,
08/01/2047
991‌
1,056‌
4.00%,
10/01/2047
656‌
698‌
4.00%,
12/01/2047
1,085‌
1,156‌
4.00%,
07/01/2048
844‌
895‌
4.00%,
08/01/2048
490‌
519‌
4.00%,
09/01/2048
647‌
687‌
4.50%,
08/01/2023
45‌
48‌
4.50%,
05/01/2024
46‌
49‌
4.50%,
02/01/2030
10‌
11‌
4.50%,
08/01/2030
7‌
8‌
4.50%,
05/01/2031
10‌
11‌
4.50%,
06/01/2031
66‌
72‌
4.50%,
06/01/2039
107‌
119‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.50%,
10/01/2039
$
76‌
$
84‌
4.50%,
10/01/2040
116‌
129‌
4.50%,
03/01/2041
277‌
307‌
4.50%,
03/01/2041
302‌
336‌
4.50%,
09/01/2041
106‌
114‌
4.50%,
11/01/2041
215‌
239‌
4.50%,
09/01/2043
172‌
191‌
4.50%,
11/01/2043
88‌
98‌
4.50%,
11/01/2043
126‌
140‌
4.50%,
01/01/2044
128‌
143‌
4.50%,
01/01/2044
106‌
119‌
4.50%,
03/01/2044
137‌
153‌
4.50%,
05/01/2044
227‌
252‌
4.50%,
07/01/2044
89‌
99‌
4.50%,
09/01/2044
89‌
98‌
4.50%,
10/01/2045
128‌
139‌
4.50%,
02/01/2046
495‌
538‌
4.50%,
03/01/2047
87‌
94‌
4.50%,
03/01/2047
467‌
507‌
4.50%,
04/01/2047
115‌
125‌
4.50%,
06/01/2047
255‌
273‌
4.50%,
09/01/2047
253‌
273‌
4.50%,
11/01/2047
65‌
70‌
4.50%,
05/01/2048
264‌
283‌
4.50%,
07/01/2048
502‌
540‌
4.50%,
11/01/2048
276‌
297‌
4.50%,
01/01/2049
967‌
1,039‌
4.50%,
05/01/2049
2,024‌
2,176‌
5.00%,
09/01/2023
37‌
40‌
5.00%,
04/01/2024
18‌
19‌
5.00%,
01/01/2025
65‌
71‌
5.00%,
12/01/2027
26‌
29‌
5.00%,
02/01/2030
4‌
5‌
5.00%,
03/01/2030
3‌
3‌
5.00%,
04/01/2034
91‌
104‌
5.00%,
06/01/2035
105‌
121‌
5.00%,
01/01/2038
192‌
220‌
5.00%,
11/01/2038
152‌
174‌
5.00%,
12/01/2038
162‌
186‌
5.00%,
09/01/2039
256‌
293‌
5.00%,
01/01/2040
172‌
198‌
5.00%,
05/01/2040
114‌
131‌
5.00%,
04/01/2041
118‌
135‌
5.00%,
06/01/2041
91‌
101‌
5.00%,
11/01/2041
290‌
324‌
5.00%,
11/01/2041
95‌
109‌
5.50%,
01/01/2028
61‌
67‌
5.50%,
04/01/2036
143‌
164‌
5.50%,
12/01/2036
100‌
115‌
5.50%,
12/01/2036
104‌
119‌
5.50%,
03/01/2039
150‌
172‌
5.50%,
04/01/2039
91‌
104‌
5.50%,
02/01/2040
138‌
158‌
5.50%,
06/01/2041
210‌
241‌
6.00%,
02/01/2027
7‌
8‌
$
101,253‌
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
14.98%
2.00%,
09/01/2028
114‌
119‌
2.00%,
05/01/2030
232‌
241‌
2.00%,
04/01/2032
112‌
117‌
2.00%,
07/01/2035
(l)
4,750‌
4,914‌
2.00%,
07/01/2050
(l)
2,000‌
2,047‌
2.50%,
01/01/2028
135‌
141‌
2.50%,
07/01/2028
172‌
181‌
2.50%,
08/01/2028
168‌
176‌
2.50%,
08/01/2028
89‌
93‌
2.50%,
09/01/2028
183‌
192‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
91
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
2.50%,
07/01/2029
$
94‌
$
98‌
2.50%,
07/01/2029
223‌
234‌
2.50%,
07/01/2029
105‌
110‌
2.50%,
09/01/2029
205‌
215‌
2.50%,
12/01/2029
112‌
117‌
2.50%,
01/01/2030
167‌
175‌
2.50%,
04/01/2030
216‌
227‌
2.50%,
05/01/2030
467‌
490‌
2.50%,
06/01/2030
276‌
290‌
2.50%,
08/01/2030
121‌
127‌
2.50%,
08/01/2030
565‌
593‌
2.50%,
01/01/2031
186‌
195‌
2.50%,
01/01/2031
204‌
214‌
2.50%,
02/01/2031
269‌
283‌
2.50%,
02/01/2031
224‌
235‌
2.50%,
05/01/2031
138‌
145‌
2.50%,
06/01/2031
237‌
249‌
2.50%,
11/01/2031
2,274‌
2,387‌
2.50%,
12/01/2031
371‌
389‌
2.50%,
01/01/2032
445‌
467‌
2.50%,
01/01/2032
818‌
858‌
2.50%,
02/01/2032
439‌
461‌
2.50%,
03/01/2032
207‌
217‌
2.50%,
03/01/2032
117‌
122‌
2.50%,
11/01/2032
39‌
41‌
2.50%,
12/01/2032
110‌
117‌
2.50%,
01/01/2033
169‌
177‌
2.50%,
02/01/2033
642‌
674‌
2.50%,
04/01/2033
1,208‌
1,268‌
2.50%,
07/01/2033
86‌
90‌
2.50%,
10/01/2034
1,368‌
1,433‌
2.50%,
02/01/2035
2,496‌
2,615‌
2.50%,
07/01/2035
(l)
4,250‌
4,450‌
2.50%,
10/01/2036
50‌
53‌
2.50%,
10/01/2036
125‌
130‌
2.50%,
12/01/2036
208‌
217‌
2.50%,
01/01/2043
488‌
517‌
2.50%,
08/01/2043
120‌
127‌
2.50%,
10/01/2043
300‌
317‌
2.50%,
12/01/2046
133‌
141‌
2.50%,
07/01/2050
(l)
34,000‌
35,445‌
3.00%,
11/01/2026
101‌
107‌
3.00%,
02/01/2027
183‌
192‌
3.00%,
04/01/2027
900‌
953‌
3.00%,
08/01/2027
140‌
147‌
3.00%,
10/01/2028
330‌
347‌
3.00%,
11/01/2028
158‌
166‌
3.00%,
02/01/2029
119‌
125‌
3.00%,
03/01/2029
189‌
199‌
3.00%,
03/01/2029
128‌
134‌
3.00%,
04/01/2029
164‌
172‌
3.00%,
05/01/2029
149‌
158‌
3.00%,
06/01/2029
109‌
114‌
3.00%,
08/01/2029
114‌
120‌
3.00%,
10/01/2029
93‌
98‌
3.00%,
10/01/2029
91‌
96‌
3.00%,
10/01/2029
124‌
131‌
3.00%,
11/01/2029
86‌
90‌
3.00%,
01/01/2030
191‌
201‌
3.00%,
01/01/2030
423‌
446‌
3.00%,
01/01/2030
462‌
486‌
3.00%,
03/01/2030
273‌
288‌
3.00%,
06/01/2030
252‌
266‌
3.00%,
06/01/2030
249‌
262‌
3.00%,
09/01/2030
96‌
102‌
3.00%,
09/01/2030
402‌
423‌
3.00%,
10/01/2030
266‌
280‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
02/01/2031
$
117‌
$
123‌
3.00%,
04/01/2032
1,098‌
1,170‌
3.00%,
05/01/2032
153‌
162‌
3.00%,
08/01/2032
245‌
261‌
3.00%,
01/01/2033
50‌
52‌
3.00%,
02/01/2033
1,070‌
1,126‌
3.00%,
08/01/2033
645‌
688‌
3.00%,
05/01/2034
308‌
324‌
3.00%,
05/01/2034
137‌
146‌
3.00%,
08/01/2034
492‌
524‌
3.00%,
10/01/2034
63‌
67‌
3.00%,
11/01/2034
172‌
183‌
3.00%,
12/01/2034
3,086‌
3,244‌
3.00%,
02/01/2035
183‌
194‌
3.00%,
02/01/2035
164‌
175‌
3.00%,
03/01/2035
82‌
87‌
3.00%,
04/01/2035
83‌
89‌
3.00%,
06/01/2035
194‌
206‌
3.00%,
07/01/2035
(l)
2,500‌
2,628‌
3.00%,
07/01/2035
74‌
79‌
3.00%,
11/01/2035
111‌
117‌
3.00%,
07/01/2036
172‌
183‌
3.00%,
12/01/2036
517‌
547‌
3.00%,
12/01/2036
255‌
270‌
3.00%,
12/01/2036
365‌
387‌
3.00%,
02/01/2037
216‌
228‌
3.00%,
02/01/2037
35‌
37‌
3.00%,
04/01/2037
110‌
117‌
3.00%,
04/01/2037
139‌
147‌
3.00%,
07/01/2037
78‌
82‌
3.00%,
08/01/2037
124‌
132‌
3.00%,
09/01/2037
326‌
345‌
3.00%,
04/01/2042
188‌
201‌
3.00%,
09/01/2042
103‌
111‌
3.00%,
12/01/2042
111‌
119‌
3.00%,
02/01/2043
434‌
472‌
3.00%,
02/01/2043
736‌
789‌
3.00%,
02/01/2043
442‌
474‌
3.00%,
04/01/2043
350‌
375‌
3.00%,
04/01/2043
456‌
488‌
3.00%,
04/01/2043
583‌
624‌
3.00%,
04/01/2043
367‌
393‌
3.00%,
04/01/2043
969‌
1,038‌
3.00%,
04/01/2043
248‌
266‌
3.00%,
04/01/2043
430‌
461‌
3.00%,
04/01/2043
236‌
253‌
3.00%,
04/01/2043
346‌
371‌
3.00%,
05/01/2043
262‌
281‌
3.00%,
05/01/2043
50‌
54‌
3.00%,
05/01/2043
475‌
508‌
3.00%,
05/01/2043
320‌
343‌
3.00%,
06/01/2043
803‌
861‌
3.00%,
06/01/2043
426‌
457‌
3.00%,
06/01/2043
456‌
489‌
3.00%,
06/01/2043
628‌
677‌
3.00%,
06/01/2043
334‌
358‌
3.00%,
07/01/2043
611‌
654‌
3.00%,
07/01/2043
159‌
170‌
3.00%,
07/01/2043
248‌
266‌
3.00%,
08/01/2043
155‌
166‌
3.00%,
08/01/2043
755‌
809‌
3.00%,
08/01/2043
253‌
271‌
3.00%,
08/01/2043
104‌
112‌
3.00%,
08/01/2043
479‌
513‌
3.00%,
08/01/2043
158‌
168‌
3.00%,
09/01/2043
272‌
292‌
3.00%,
09/01/2043
626‌
672‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
92
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
10/01/2043
$
123‌
$
132‌
3.00%,
10/01/2043
798‌
855‌
3.00%,
11/01/2043
147‌
157‌
3.00%,
11/01/2043
99‌
106‌
3.00%,
11/01/2043
240‌
258‌
3.00%,
01/01/2044
120‌
129‌
3.00%,
01/01/2045
529‌
563‌
3.00%,
05/01/2045
702‌
746‌
3.00%,
09/01/2045
137‌
145‌
3.00%,
10/01/2045
439‌
467‌
3.00%,
11/01/2045
250‌
265‌
3.00%,
11/01/2045
110‌
117‌
3.00%,
12/01/2045
593‌
629‌
3.00%,
01/01/2046
416‌
441‌
3.00%,
02/01/2046
696‌
737‌
3.00%,
02/01/2046
477‌
506‌
3.00%,
02/01/2046
213‌
225‌
3.00%,
04/01/2046
112‌
118‌
3.00%,
05/01/2046
276‌
293‌
3.00%,
05/01/2046
382‌
404‌
3.00%,
05/01/2046
104‌
110‌
3.00%,
06/01/2046
171‌
182‌
3.00%,
08/01/2046
212‌
224‌
3.00%,
08/01/2046
680‌
719‌
3.00%,
09/01/2046
376‌
398‌
3.00%,
09/01/2046
257‌
272‌
3.00%,
10/01/2046
153‌
162‌
3.00%,
10/01/2046
1,332‌
1,410‌
3.00%,
11/01/2046
741‌
784‌
3.00%,
11/01/2046
736‌
779‌
3.00%,
11/01/2046
108‌
115‌
3.00%,
11/01/2046
680‌
719‌
3.00%,
11/01/2046
180‌
191‌
3.00%,
11/01/2046
976‌
1,033‌
3.00%,
12/01/2046
1,014‌
1,073‌
3.00%,
12/01/2046
1,920‌
2,032‌
3.00%,
01/01/2047
1,062‌
1,124‌
3.00%,
01/01/2047
325‌
343‌
3.00%,
02/01/2047
192‌
203‌
3.00%,
02/01/2047
781‌
826‌
3.00%,
05/01/2047
379‌
400‌
3.00%,
10/01/2048
97‌
102‌
3.00%,
09/01/2049
5,621‌
5,924‌
3.00%,
10/01/2049
1,893‌
1,998‌
3.00%,
10/01/2049
9,350‌
9,876‌
3.00%,
11/01/2049
934‌
984‌
3.00%,
11/01/2049
3,274‌
3,451‌
3.00%,
11/01/2049
3,033‌
3,221‌
3.00%,
11/01/2049
1,781‌
1,880‌
3.00%,
07/01/2050
(l)
32,000‌
33,703‌
3.50%,
10/01/2025
173‌
182‌
3.50%,
11/01/2025
221‌
233‌
3.50%,
11/01/2025
93‌
98‌
3.50%,
01/01/2026
209‌
220‌
3.50%,
03/01/2026
195‌
205‌
3.50%,
12/01/2026
163‌
172‌
3.50%,
02/01/2027
100‌
105‌
3.50%,
11/01/2028
159‌
168‌
3.50%,
12/01/2028
85‌
90‌
3.50%,
03/01/2029
149‌
157‌
3.50%,
01/01/2031
7‌
8‌
3.50%,
04/01/2031
14‌
15‌
3.50%,
02/01/2032
73‌
77‌
3.50%,
04/01/2032
63‌
67‌
3.50%,
05/01/2032
137‌
145‌
3.50%,
06/01/2032
242‌
259‌
3.50%,
07/01/2032
87‌
93‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50%,
09/01/2032
$
135‌
$
144‌
3.50%,
12/01/2032
3,052‌
3,257‌
3.50%,
09/01/2033
65‌
70‌
3.50%,
09/01/2033
164‌
172‌
3.50%,
10/01/2033
137‌
146‌
3.50%,
10/01/2033
475‌
500‌
3.50%,
11/01/2033
142‌
151‌
3.50%,
01/01/2034
97‌
104‌
3.50%,
06/01/2034
173‌
185‌
3.50%,
08/01/2034
45‌
48‌
3.50%,
11/01/2034
108‌
116‌
3.50%,
07/01/2035
(l)
1,000‌
1,051‌
3.50%,
12/01/2035
240‌
257‌
3.50%,
07/01/2036
251‌
266‌
3.50%,
02/01/2037
177‌
187‌
3.50%,
03/01/2037
217‌
229‌
3.50%,
05/01/2037
44‌
46‌
3.50%,
07/01/2037
100‌
105‌
3.50%,
10/01/2037
117‌
124‌
3.50%,
01/01/2038
315‌
332‌
3.50%,
01/01/2041
945‌
1,023‌
3.50%,
03/01/2041
1,265‌
1,369‌
3.50%,
10/01/2041
123‌
133‌
3.50%,
12/01/2041
349‌
377‌
3.50%,
12/01/2041
387‌
418‌
3.50%,
01/01/2042
133‌
143‌
3.50%,
03/01/2042
89‌
96‌
3.50%,
03/01/2042
303‌
328‌
3.50%,
03/01/2042
132‌
143‌
3.50%,
05/01/2042
623‌
674‌
3.50%,
05/01/2042
99‌
107‌
3.50%,
07/01/2042
164‌
177‌
3.50%,
07/01/2042
88‌
96‌
3.50%,
10/01/2042
708‌
766‌
3.50%,
04/01/2043
168‌
182‌
3.50%,
05/01/2043
201‌
217‌
3.50%,
05/01/2043
562‌
612‌
3.50%,
05/01/2043
424‌
463‌
3.50%,
06/01/2043
463‌
506‌
3.50%,
07/01/2043
230‌
252‌
3.50%,
07/01/2043
679‌
735‌
3.50%,
08/01/2043
129‌
140‌
3.50%,
08/01/2043
514‌
556‌
3.50%,
09/01/2043
161‌
174‌
3.50%,
12/01/2043
169‌
180‌
3.50%,
01/01/2044
1,446‌
1,587‌
3.50%,
02/01/2044
151‌
162‌
3.50%,
07/01/2044
987‌
1,068‌
3.50%,
10/01/2044
186‌
199‌
3.50%,
10/01/2044
493‌
529‌
3.50%,
11/01/2044
498‌
533‌
3.50%,
12/01/2044
450‌
483‌
3.50%,
12/01/2044
90‌
97‌
3.50%,
12/01/2044
424‌
452‌
3.50%,
01/01/2045
566‌
606‌
3.50%,
04/01/2045
504‌
538‌
3.50%,
05/01/2045
203‌
217‌
3.50%,
07/01/2045
504‌
540‌
3.50%,
07/01/2045
102‌
109‌
3.50%,
08/01/2045
592‌
634‌
3.50%,
08/01/2045
552‌
590‌
3.50%,
09/01/2045
297‌
317‌
3.50%,
09/01/2045
560‌
599‌
3.50%,
09/01/2045
656‌
702‌
3.50%,
11/01/2045
472‌
506‌
3.50%,
11/01/2045
246‌
263‌
3.50%,
12/01/2045
473‌
507‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
93
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50%,
12/01/2045
$
834‌
$
890‌
3.50%,
12/01/2045
569‌
610‌
3.50%,
01/01/2046
725‌
774‌
3.50%,
01/01/2046
968‌
1,032‌
3.50%,
02/01/2046
193‌
206‌
3.50%,
02/01/2046
414‌
441‌
3.50%,
03/01/2046
633‌
674‌
3.50%,
03/01/2046
660‌
705‌
3.50%,
05/01/2046
743‌
791‌
3.50%,
06/01/2046
112‌
119‌
3.50%,
07/01/2046
579‌
617‌
3.50%,
09/01/2046
535‌
570‌
3.50%,
11/01/2046
903‌
967‌
3.50%,
12/01/2046
619‌
659‌
3.50%,
01/01/2047
1,202‌
1,275‌
3.50%,
02/01/2047
999‌
1,061‌
3.50%,
03/01/2047
103‌
109‌
3.50%,
09/01/2047
316‌
334‌
3.50%,
11/01/2047
1,352‌
1,430‌
3.50%,
01/01/2048
1,214‌
1,281‌
3.50%,
02/01/2048
141‌
149‌
3.50%,
02/01/2048
1,123‌
1,188‌
3.50%,
03/01/2048
855‌
902‌
3.50%,
04/01/2048
532‌
563‌
3.50%,
10/01/2048
83‌
87‌
3.50%,
10/01/2048
138‌
145‌
3.50%,
04/01/2049
1,530‌
1,615‌
3.50%,
06/01/2049
1,726‌
1,820‌
3.50%,
06/01/2049
3,163‌
3,328‌
3.50%,
06/01/2049
1,297‌
1,367‌
3.50%,
07/01/2049
3,200‌
3,373‌
3.50%,
07/01/2049
5,571‌
5,859‌
3.50%,
07/01/2049
3,607‌
3,800‌
3.50%,
08/01/2049
3,759‌
3,953‌
3.50%,
09/01/2049
2,619‌
2,778‌
3.50%,
11/01/2049
10,265‌
10,881‌
3.50%,
07/01/2050
(l)
16,250‌
17,091‌
4.00%,
07/01/2025
140‌
148‌
4.00%,
04/01/2029
3‌
4‌
4.00%,
10/01/2030
11‌
11‌
4.00%,
12/01/2030
94‌
102‌
4.00%,
02/01/2031
31‌
34‌
4.00%,
03/01/2031
722‌
765‌
4.00%,
07/01/2031
20‌
21‌
4.00%,
10/01/2031
83‌
90‌
4.00%,
11/01/2031
19‌
21‌
4.00%,
12/01/2031
16‌
17‌
4.00%,
01/01/2032
24‌
26‌
4.00%,
09/01/2033
172‌
185‌
4.00%,
01/01/2036
178‌
192‌
4.00%,
02/01/2036
117‌
126‌
4.00%,
06/01/2036
98‌
106‌
4.00%,
01/01/2037
138‌
148‌
4.00%,
02/01/2037
339‌
364‌
4.00%,
07/01/2038
349‌
372‌
4.00%,
02/01/2039
96‌
102‌
4.00%,
10/01/2039
158‌
170‌
4.00%,
01/01/2041
331‌
363‌
4.00%,
02/01/2041
92‌
100‌
4.00%,
02/01/2041
259‌
284‌
4.00%,
09/01/2041
130‌
143‌
4.00%,
02/01/2043
117‌
128‌
4.00%,
12/01/2043
125‌
137‌
4.00%,
01/01/2044
359‌
394‌
4.00%,
06/01/2044
201‌
219‌
4.00%,
06/01/2044
326‌
357‌
4.00%,
07/01/2044
390‌
427‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.00%,
07/01/2044
$
298‌
$
326‌
4.00%,
09/01/2044
150‌
163‌
4.00%,
10/01/2044
528‌
574‌
4.00%,
10/01/2044
229‌
249‌
4.00%,
11/01/2044
245‌
267‌
4.00%,
12/01/2044
333‌
361‌
4.00%,
12/01/2044
50‌
53‌
4.00%,
01/01/2045
140‌
152‌
4.00%,
02/01/2045
372‌
404‌
4.00%,
02/01/2045
226‌
245‌
4.00%,
02/01/2045
147‌
162‌
4.00%,
07/01/2045
228‌
246‌
4.00%,
07/01/2045
292‌
315‌
4.00%,
09/01/2045
369‌
398‌
4.00%,
10/01/2045
347‌
374‌
4.00%,
10/01/2045
128‌
139‌
4.00%,
11/01/2045
137‌
147‌
4.00%,
11/01/2045
490‌
531‌
4.00%,
12/01/2045
226‌
245‌
4.00%,
12/01/2045
112‌
121‌
4.00%,
01/01/2046
438‌
474‌
4.00%,
02/01/2046
110‌
119‌
4.00%,
02/01/2046
407‌
437‌
4.00%,
03/01/2046
94‌
102‌
4.00%,
03/01/2046
154‌
165‌
4.00%,
04/01/2046
329‌
354‌
4.00%,
07/01/2046
487‌
524‌
4.00%,
04/01/2047
902‌
963‌
4.00%,
06/01/2047
793‌
845‌
4.00%,
08/01/2047
499‌
531‌
4.00%,
08/01/2047
798‌
853‌
4.00%,
08/01/2047
126‌
135‌
4.00%,
08/01/2047
938‌
998‌
4.00%,
09/01/2047
891‌
948‌
4.00%,
11/01/2047
1,725‌
1,841‌
4.00%,
01/01/2048
1,334‌
1,424‌
4.00%,
02/01/2048
633‌
672‌
4.00%,
03/01/2048
318‌
338‌
4.00%,
05/01/2048
2,589‌
2,764‌
4.00%,
06/01/2048
1,649‌
1,746‌
4.00%,
06/01/2048
616‌
653‌
4.00%,
07/01/2048
446‌
473‌
4.00%,
08/01/2048
265‌
281‌
4.00%,
08/01/2048
367‌
389‌
4.00%,
09/01/2048
780‌
827‌
4.00%,
09/01/2048
889‌
941‌
4.00%,
01/01/2049
4,469‌
4,774‌
4.00%,
01/01/2049
5,910‌
6,419‌
4.00%,
03/01/2049
575‌
612‌
4.00%,
04/01/2049
919‌
973‌
4.00%,
04/01/2049
894‌
948‌
4.00%,
07/01/2049
2,467‌
2,616‌
4.00%,
08/01/2049
2,397‌
2,539‌
4.00%,
10/01/2049
910‌
979‌
4.00%,
10/01/2049
2,454‌
2,610‌
4.00%,
11/01/2049
1,560‌
1,655‌
4.00%,
04/01/2050
4,930‌
5,340‌
4.50%,
07/01/2029
2‌
2‌
4.50%,
02/01/2030
9‌
10‌
4.50%,
04/01/2030
3‌
3‌
4.50%,
08/01/2030
64‌
70‌
4.50%,
09/01/2030
50‌
55‌
4.50%,
01/01/2031
11‌
12‌
4.50%,
04/01/2031
6‌
7‌
4.50%,
05/01/2031
10‌
10‌
4.50%,
07/01/2031
41‌
45‌
4.50%,
08/01/2031
22‌
24‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
94
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.50%,
02/01/2035
$
95‌
$
104‌
4.50%,
08/01/2040
84‌
94‌
4.50%,
08/01/2040
173‌
192‌
4.50%,
06/01/2041
121‌
135‌
4.50%,
09/01/2041
183‌
204‌
4.50%,
09/01/2043
100‌
111‌
4.50%,
10/01/2043
222‌
246‌
4.50%,
01/01/2044
413‌
460‌
4.50%,
01/01/2044
507‌
563‌
4.50%,
02/01/2044
228‌
252‌
4.50%,
03/01/2044
253‌
279‌
4.50%,
03/01/2044
135‌
150‌
4.50%,
05/01/2044
95‌
105‌
4.50%,
05/01/2044
139‌
152‌
4.50%,
05/01/2044
542‌
603‌
4.50%,
06/01/2044
264‌
292‌
4.50%,
08/01/2044
182‌
200‌
4.50%,
08/01/2044
201‌
221‌
4.50%,
12/01/2044
281‌
313‌
4.50%,
04/01/2046
201‌
217‌
4.50%,
08/01/2046
192‌
209‌
4.50%,
01/01/2047
134‌
146‌
4.50%,
02/01/2047
119‌
129‌
4.50%,
02/01/2047
277‌
302‌
4.50%,
03/01/2047
203‌
221‌
4.50%,
10/01/2047
214‌
231‌
4.50%,
11/01/2047
401‌
433‌
4.50%,
02/01/2048
289‌
311‌
4.50%,
04/01/2048
997‌
1,072‌
4.50%,
05/01/2048
592‌
637‌
4.50%,
08/01/2048
171‌
184‌
4.50%,
08/01/2048
97‌
104‌
4.50%,
10/01/2048
1,985‌
2,131‌
4.50%,
10/01/2048
955‌
1,026‌
4.50%,
04/01/2049
803‌
862‌
4.50%,
05/01/2049
4,872‌
5,268‌
4.50%,
07/01/2049
1,057‌
1,138‌
4.50%,
07/01/2049
1,862‌
2,000‌
4.50%,
09/01/2049
1,440‌
1,547‌
5.00%,
07/01/2024
3‌
3‌
5.00%,
04/01/2029
7‌
7‌
5.00%,
09/01/2029
91‌
100‌
5.00%,
03/01/2030
11‌
13‌
5.00%,
08/01/2030
15‌
17‌
5.00%,
07/01/2035
125‌
144‌
5.00%,
04/01/2037
179‌
203‌
5.00%,
01/01/2039
261‌
298‌
5.00%,
07/01/2039
110‌
126‌
5.00%,
07/01/2039
110‌
127‌
5.00%,
02/01/2041
140‌
161‌
5.00%,
02/01/2041
231‌
265‌
5.00%,
05/01/2042
317‌
363‌
5.00%,
03/01/2044
163‌
179‌
5.00%,
03/01/2044
223‌
247‌
5.00%,
05/01/2044
113‌
125‌
5.00%,
11/01/2044
202‌
225‌
5.00%,
04/01/2048
196‌
214‌
5.00%,
09/01/2048
2,089‌
2,282‌
5.00%,
05/01/2049
187‌
204‌
5.00%,
06/01/2049
1,272‌
1,389‌
5.00%,
07/01/2049
656‌
729‌
5.00%,
08/01/2049
849‌
940‌
5.50%,
01/01/2023
2‌
2‌
5.50%,
07/01/2023
3‌
3‌
5.50%,
08/01/2023
25‌
28‌
5.50%,
10/01/2023
33‌
36‌
5.50%,
11/01/2023
41‌
45‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.50%,
02/01/2026
$
42‌
$
46‌
5.50%,
03/01/2027
38‌
42‌
5.50%,
06/01/2028
4‌
4‌
5.50%,
09/01/2028
1‌
1‌
5.50%,
01/01/2029
19‌
21‌
5.50%,
01/01/2029
3‌
3‌
5.50%,
12/01/2029
15‌
17‌
5.50%,
11/01/2035
159‌
183‌
5.50%,
12/01/2036
89‌
102‌
5.50%,
03/01/2037
129‌
148‌
5.50%,
08/01/2037
99‌
114‌
5.50%,
08/01/2037
119‌
136‌
5.50%,
08/01/2037
93‌
106‌
5.50%,
05/01/2038
178‌
203‌
5.50%,
06/01/2038
84‌
96‌
6.00%,
05/01/2041
163‌
191‌
6.50%,
01/01/2038
92‌
106‌
$
378,940‌
Government
National
Mortgage
Association
(GNMA)
-
7.15%
2.50%,
03/20/2028
86‌
90‌
2.50%,
07/20/2028
85‌
89‌
2.50%,
03/20/2031
104‌
108‌
2.50%,
05/20/2032
137‌
144‌
2.50%,
07/20/2043
172‌
183‌
2.50%,
06/20/2045
107‌
114‌
2.50%,
12/20/2046
273‌
290‌
2.50%,
01/20/2047
435‌
461‌
2.50%,
07/01/2050
10,500‌
11,053‌
3.00%,
07/20/2030
181‌
190‌
3.00%,
01/20/2031
112‌
117‌
3.00%,
07/20/2032
153‌
161‌
3.00%,
01/20/2033
74‌
78‌
3.00%,
09/20/2042
1,167‌
1,248‌
3.00%,
10/15/2042
238‌
252‌
3.00%,
12/20/2042
330‌
353‌
3.00%,
01/20/2043
467‌
500‌
3.00%,
03/20/2043
200‌
215‌
3.00%,
03/20/2043
626‌
670‌
3.00%,
04/20/2043
815‌
872‌
3.00%,
06/15/2043
281‌
299‌
3.00%,
06/20/2043
178‌
191‌
3.00%,
07/15/2043
83‌
88‌
3.00%,
08/15/2043
176‌
187‌
3.00%,
08/15/2043
196‌
207‌
3.00%,
08/20/2043
85‌
90‌
3.00%,
09/20/2043
321‌
343‌
3.00%,
10/20/2043
165‌
176‌
3.00%,
11/20/2043
121‌
130‌
3.00%,
03/20/2044
236‌
252‌
3.00%,
08/20/2044
934‌
1,000‌
3.00%,
11/15/2044
257‌
273‌
3.00%,
11/20/2044
357‌
382‌
3.00%,
12/20/2044
409‌
437‌
3.00%,
02/15/2045
293‌
312‌
3.00%,
05/20/2045
363‌
388‌
3.00%,
07/15/2045
168‌
178‌
3.00%,
07/20/2045
2,764‌
2,951‌
3.00%,
08/15/2045
225‌
240‌
3.00%,
08/20/2045
811‌
867‌
3.00%,
10/20/2045
755‌
805‌
3.00%,
11/20/2045
437‌
466‌
3.00%,
12/20/2045
620‌
660‌
3.00%,
01/20/2046
159‌
170‌
3.00%,
02/20/2046
203‌
216‌
3.00%,
03/20/2046
1,040‌
1,106‌
3.00%,
04/20/2046
712‌
758‌
3.00%,
05/20/2046
634‌
674‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
95
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.00%,
06/20/2046
$
960‌
$
1,021‌
3.00%,
07/20/2046
2,885‌
3,069‌
3.00%,
08/20/2046
1,981‌
2,108‌
3.00%,
09/20/2046
1,144‌
1,216‌
3.00%,
10/20/2046
746‌
794‌
3.00%,
11/20/2046
348‌
374‌
3.00%,
11/20/2046
1,135‌
1,206‌
3.00%,
12/20/2046
1,364‌
1,450‌
3.00%,
01/20/2047
903‌
960‌
3.00%,
07/20/2047
45‌
48‌
3.00%,
10/20/2047
1,061‌
1,125‌
3.00%,
11/20/2047
505‌
536‌
3.00%,
12/20/2047
1,620‌
1,719‌
3.00%,
01/20/2048
704‌
747‌
3.00%,
02/20/2048
759‌
805‌
3.00%,
03/20/2048
709‌
753‌
3.00%,
07/01/2050
21,050‌
22,302‌
3.50%,
09/20/2028
115‌
120‌
3.50%,
04/20/2042
815‌
886‌
3.50%,
05/20/2042
852‌
926‌
3.50%,
06/20/2042
238‌
258‌
3.50%,
07/20/2042
949‌
1,031‌
3.50%,
10/20/2042
563‌
612‌
3.50%,
01/15/2043
302‌
322‌
3.50%,
01/20/2043
290‌
315‌
3.50%,
02/20/2043
882‌
959‌
3.50%,
03/20/2043
379‌
413‌
3.50%,
03/20/2043
834‌
907‌
3.50%,
04/15/2043
89‌
96‌
3.50%,
04/20/2043
821‌
893‌
3.50%,
04/20/2043
586‌
637‌
3.50%,
07/20/2043
977‌
1,062‌
3.50%,
08/15/2043
91‌
97‌
3.50%,
08/20/2043
784‌
850‌
3.50%,
09/20/2043
515‌
559‌
3.50%,
07/20/2044
653‌
700‌
3.50%,
08/20/2044
686‌
736‌
3.50%,
09/20/2044
256‌
274‌
3.50%,
10/20/2044
275‌
295‌
3.50%,
11/20/2044
300‌
321‌
3.50%,
12/20/2044
334‌
357‌
3.50%,
02/20/2045
333‌
356‌
3.50%,
05/20/2045
455‌
487‌
3.50%,
06/20/2045
93‌
99‌
3.50%,
07/20/2045
674‌
722‌
3.50%,
08/20/2045
309‌
331‌
3.50%,
09/20/2045
167‌
179‌
3.50%,
10/20/2045
1,248‌
1,339‌
3.50%,
11/20/2045
1,012‌
1,083‌
3.50%,
12/20/2045
633‌
678‌
3.50%,
01/20/2046
1,620‌
1,734‌
3.50%,
02/20/2046
89‌
96‌
3.50%,
03/20/2046
8,435‌
9,033‌
3.50%,
04/20/2046
651‌
698‌
3.50%,
05/20/2046
898‌
962‌
3.50%,
06/20/2046
1,175‌
1,258‌
3.50%,
07/15/2046
86‌
90‌
3.50%,
07/20/2046
480‌
514‌
3.50%,
08/20/2046
2,110‌
2,262‌
3.50%,
09/20/2046
859‌
921‌
3.50%,
10/20/2046
1,015‌
1,088‌
3.50%,
11/20/2046
778‌
832‌
3.50%,
12/20/2046
813‌
866‌
3.50%,
01/20/2047
885‌
941‌
3.50%,
02/20/2047
542‌
579‌
3.50%,
03/20/2047
759‌
807‌
3.50%,
04/20/2047
1,848‌
1,972‌
3.50%,
05/20/2047
559‌
596‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.50%,
06/20/2047
$
875‌
$
933‌
3.50%,
07/20/2047
1,602‌
1,706‌
3.50%,
08/20/2047
2,529‌
2,692‌
3.50%,
09/20/2047
191‌
204‌
3.50%,
10/20/2047
640‌
680‌
3.50%,
11/20/2047
820‌
872‌
3.50%,
12/20/2047
940‌
999‌
3.50%,
01/20/2048
1,377‌
1,463‌
3.50%,
02/20/2048
208‌
221‌
3.50%,
07/20/2048
412‌
438‌
3.50%,
07/01/2050
6,625‌
6,991‌
4.00%,
08/15/2040
79‌
86‌
4.00%,
12/20/2040
35‌
39‌
4.00%,
08/15/2041
86‌
94‌
4.00%,
11/15/2041
102‌
111‌
4.00%,
03/15/2042
128‌
135‌
4.00%,
03/20/2042
164‌
180‌
4.00%,
04/20/2042
141‌
156‌
4.00%,
05/15/2042
279‌
296‌
4.00%,
10/20/2043
85‌
94‌
4.00%,
11/20/2043
195‌
214‌
4.00%,
02/20/2044
468‌
512‌
4.00%,
03/15/2044
176‌
191‌
4.00%,
05/20/2044
304‌
331‌
4.00%,
06/20/2044
226‌
246‌
4.00%,
07/20/2044
909‌
991‌
4.00%,
08/20/2044
641‌
698‌
4.00%,
09/20/2044
579‌
630‌
4.00%,
10/20/2044
767‌
836‌
4.00%,
11/20/2044
345‌
376‌
4.00%,
12/20/2044
611‌
665‌
4.00%,
01/20/2045
507‌
552‌
4.00%,
04/20/2045
328‌
357‌
4.00%,
05/15/2045
131‌
142‌
4.00%,
07/20/2045
134‌
145‌
4.00%,
08/20/2045
369‌
400‌
4.00%,
09/20/2045
534‌
579‌
4.00%,
10/20/2045
277‌
301‌
4.00%,
11/20/2045
100‌
108‌
4.00%,
12/15/2045
130‌
140‌
4.00%,
12/20/2045
249‌
269‌
4.00%,
01/20/2046
157‌
170‌
4.00%,
02/20/2046
226‌
244‌
4.00%,
04/20/2046
384‌
415‌
4.00%,
05/20/2046
190‌
205‌
4.00%,
07/20/2046
408‌
441‌
4.00%,
01/20/2047
842‌
908‌
4.00%,
02/20/2047
713‌
766‌
4.00%,
03/20/2047
683‌
734‌
4.00%,
05/20/2047
929‌
999‌
4.00%,
06/20/2047
927‌
996‌
4.00%,
07/20/2047
2,326‌
2,502‌
4.00%,
08/20/2047
106‌
114‌
4.00%,
09/20/2047
7,100‌
7,611‌
4.00%,
10/20/2047
517‌
552‌
4.50%,
02/15/2039
116‌
130‌
4.50%,
05/15/2039
99‌
111‌
4.50%,
11/15/2039
240‌
280‌
4.50%,
04/15/2040
305‌
340‌
4.50%,
01/20/2041
38‌
42‌
4.50%,
02/20/2041
38‌
42‌
4.50%,
03/20/2041
30‌
33‌
4.50%,
07/15/2041
151‌
167‌
4.50%,
05/20/2043
146‌
160‌
4.50%,
06/20/2043
135‌
148‌
4.50%,
10/20/2043
128‌
140‌
4.50%,
11/20/2043
414‌
454‌
4.50%,
03/20/2044
565‌
619‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
96
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
4.50%,
04/20/2044
$
25‌
$
28‌
4.50%,
05/20/2044
409‌
449‌
4.50%,
07/20/2044
213‌
233‌
4.50%,
12/20/2044
88‌
97‌
4.50%,
02/20/2045
227‌
249‌
4.50%,
03/20/2045
104‌
114‌
4.50%,
04/20/2045
128‌
141‌
4.50%,
06/20/2046
135‌
148‌
4.50%,
12/20/2046
387‌
424‌
4.50%,
02/20/2047
262‌
287‌
4.50%,
04/20/2047
204‌
223‌
4.50%,
06/15/2047
174‌
192‌
4.50%,
08/20/2047
454‌
495‌
4.50%,
10/20/2047
217‌
235‌
4.50%,
02/20/2048
3,798‌
4,123‌
4.50%,
05/20/2048
3,129‌
3,376‌
4.50%,
08/20/2048
768‌
822‌
4.50%,
10/20/2048
476‌
512‌
4.50%,
11/20/2048
738‌
789‌
4.50%,
12/20/2048
218‌
234‌
5.00%,
07/15/2035
91‌
104‌
5.00%,
04/15/2041
231‌
261‌
5.00%,
08/20/2041
83‌
94‌
5.00%,
04/20/2042
76‌
85‌
5.00%,
12/20/2042
200‌
226‌
5.00%,
07/20/2043
116‌
130‌
5.00%,
02/20/2044
123‌
139‌
5.00%,
03/20/2044
82‌
93‌
5.00%,
12/20/2045
109‌
123‌
5.00%,
03/20/2048
155‌
170‌
5.00%,
06/20/2048
3,216‌
3,504‌
5.00%,
10/20/2048
251‌
274‌
5.50%,
01/15/2040
93‌
109‌
5.50%,
06/20/2040
63‌
71‌
5.50%,
01/20/2041
180‌
207‌
5.50%,
10/20/2042
82‌
95‌
5.50%,
09/20/2043
87‌
101‌
6.00%,
04/15/2035
10‌
11‌
$
180,780‌
U.S.
Treasury
-
38.84%
0.13%,
04/30/2022
4,000‌
3,997‌
0.13%,
05/31/2022
11,410‌
11,402‌
0.13%,
06/30/2022
165‌
165‌
0.13%,
05/15/2023
11,175‌
11,158‌
0.25%,
04/15/2023
8,235‌
8,252‌
0.25%,
05/31/2025
2,360‌
2,357‌
0.25%,
06/30/2025
2,210‌
2,206‌
0.38%,
04/30/2025
8,100‌
8,137‌
0.50%,
03/15/2023
1,725‌
1,740‌
0.50%,
03/31/2025
13,470‌
13,614‌
0.50%,
05/31/2027
3,290‌
3,293‌
0.50%,
06/30/2027
2,265‌
2,266‌
0.63%,
03/31/2027
6,730‌
6,798‌
0.63%,
05/15/2030
1,735‌
1,730‌
1.13%,
07/31/2021
3,250‌
3,283‌
1.13%,
08/31/2021
4,050‌
4,094‌
1.13%,
09/30/2021
3,730‌
3,774‌
1.25%,
10/31/2021
5,200‌
5,275‌
1.25%,
07/31/2023
5,000‌
5,165‌
1.25%,
08/31/2024
7,600‌
7,919‌
1.25%,
05/15/2050
2,535‌
2,436‌
1.38%,
06/30/2023
4,050‌
4,195‌
1.38%,
08/31/2023
13,785‌
14,305‌
1.38%,
09/30/2023
2,220‌
2,306‌
1.38%,
08/31/2026
3,400‌
3,598‌
1.50%,
10/31/2021
5,050‌
5,139‌
1.50%,
11/30/2021
6,975‌
7,106‌
1.50%,
01/31/2022
3,104‌
3,169‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
1.50%,
08/15/2022
$
850‌
$
874‌
1.50%,
02/28/2023
2,995‌
3,100‌
1.50%,
03/31/2023
3,340‌
3,461‌
1.50%,
09/30/2024
5,950‌
6,267‌
1.50%,
10/31/2024
1,000‌
1,054‌
1.50%,
11/30/2024
3,080‌
3,249‌
1.50%,
08/15/2026
10,725‌
11,428‌
1.50%,
02/15/2030
14,860‌
16,064‌
1.63%,
12/31/2021
4,000‌
4,087‌
1.63%,
08/15/2022
1,990‌
2,051‌
1.63%,
08/31/2022
3,960‌
4,084‌
1.63%,
11/15/2022
2,790‌
2,886‌
1.63%,
04/30/2023
3,000‌
3,122‌
1.63%,
02/15/2026
3,315‌
3,546‌
1.63%,
05/15/2026
3,345‌
3,585‌
1.63%,
09/30/2026
1,265‌
1,358‌
1.63%,
11/30/2026
1,500‌
1,612‌
1.63%,
08/15/2029
3,750‌
4,092‌
1.75%,
11/30/2021
3,975‌
4,064‌
1.75%,
02/28/2022
920‌
944‌
1.75%,
03/31/2022
4,435‌
4,557‌
1.75%,
04/30/2022
3,335‌
3,432‌
1.75%,
05/15/2022
3,430‌
3,531‌
1.75%,
05/31/2022
5,280‌
5,439‌
1.75%,
06/15/2022
2,000‌
2,062‌
1.75%,
06/30/2022
3,860‌
3,982‌
1.75%,
07/15/2022
10,800‌
11,147‌
1.75%,
09/30/2022
1,640‌
1,698‌
1.75%,
01/31/2023
2,560‌
2,663‌
1.75%,
05/15/2023
2,517‌
2,630‌
1.75%,
06/30/2024
3,970‌
4,211‌
1.75%,
12/31/2024
5,620‌
5,996‌
1.75%,
11/15/2029
9,045‌
9,986‌
1.88%,
11/30/2021
3,107‌
3,182‌
1.88%,
01/31/2022
3,580‌
3,676‌
1.88%,
02/28/2022
3,000‌
3,085‌
1.88%,
03/31/2022
6,700‌
6,899‌
1.88%,
04/30/2022
3,640‌
3,753‌
1.88%,
05/31/2022
1,200‌
1,239‌
1.88%,
07/31/2022
3,640‌
3,769‌
1.88%,
08/31/2022
3,810‌
3,950‌
1.88%,
10/31/2022
4,000‌
4,159‌
1.88%,
08/31/2024
4,000‌
4,273‌
1.88%,
07/31/2026
7,400‌
8,051‌
2.00%,
08/31/2021
3,995‌
4,080‌
2.00%,
11/15/2021
11,310‌
11,593‌
2.00%,
12/31/2021
2,890‌
2,969‌
2.00%,
02/15/2022
1,545‌
1,591‌
2.00%,
07/31/2022
3,331‌
3,458‌
2.00%,
10/31/2022
4,050‌
4,222‌
2.00%,
11/30/2022
3,615‌
3,774‌
2.00%,
02/15/2023
4,597‌
4,816‌
2.00%,
04/30/2024
4,035‌
4,310‌
2.00%,
05/31/2024
6,765‌
7,234‌
2.00%,
06/30/2024
5,195‌
5,562‌
2.00%,
02/15/2025
8,570‌
9,254‌
2.00%,
08/15/2025
4,850‌
5,265‌
2.00%,
11/15/2026
1,690‌
1,856‌
2.00%,
02/15/2050
4,900‌
5,612‌
2.13%,
08/15/2021
3,140‌
3,208‌
2.13%,
09/30/2021
2,955‌
3,027‌
2.13%,
12/31/2021
3,105‌
3,195‌
2.13%,
05/15/2022
4,160‌
4,312‌
2.13%,
06/30/2022
4,365‌
4,535‌
2.13%,
12/31/2022
6,600‌
6,921‌
2.13%,
03/31/2024
10,250‌
10,982‌
2.13%,
07/31/2024
5,810‌
6,257‌
2.13%,
09/30/2024
4,770‌
5,149‌
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
97
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.13%,
11/30/2024
$
4,460‌
$
4,828‌
2.13%,
05/15/2025
8,950‌
9,746‌
2.13%,
05/31/2026
2,000‌
2,202‌
2.25%,
04/15/2022
4,315‌
4,475‌
2.25%,
12/31/2023
3,655‌
3,917‌
2.25%,
01/31/2024
1,475‌
1,583‌
2.25%,
04/30/2024
4,850‌
5,227‌
2.25%,
10/31/2024
3,336‌
3,624‌
2.25%,
11/15/2024
8,963‌
9,744‌
2.25%,
12/31/2024
3,000‌
3,268‌
2.25%,
11/15/2025
2,500‌
2,754‌
2.25%,
03/31/2026
5,000‌
5,533‌
2.25%,
02/15/2027
8,160‌
9,115‌
2.25%,
08/15/2027
5,535‌
6,217‌
2.25%,
11/15/2027
9,840‌
11,082‌
2.25%,
08/15/2046
4,870‌
5,776‌
2.25%,
08/15/2049
6,380‌
7,673‌
2.38%,
03/15/2022
4,230‌
4,388‌
2.38%,
01/31/2023
4,235‌
4,475‌
2.38%,
02/29/2024
4,635‌
5,002‌
2.38%,
08/15/2024
4,595‌
4,999‌
2.38%,
04/30/2026
5,000‌
5,574‌
2.38%,
05/15/2027
15,430‌
17,415‌
2.38%,
05/15/2029
8,350‌
9,636‌
2.38%,
11/15/2049
11,040‌
13,636‌
2.50%,
01/15/2022
4,200‌
4,349‌
2.50%,
02/15/2022
4,295‌
4,456‌
2.50%,
03/31/2023
4,560‌
4,850‌
2.50%,
08/15/2023
13,632‌
14,615‌
2.50%,
01/31/2024
4,530‌
4,901‌
2.50%,
05/15/2024
3,066‌
3,336‌
2.50%,
01/31/2025
3,300‌
3,637‌
2.50%,
02/15/2045
5,720‌
7,056‌
2.50%,
05/15/2046
4,425‌
5,488‌
2.63%,
07/15/2021
1,010‌
1,036‌
2.63%,
12/15/2021
4,045‌
4,189‌
2.63%,
06/30/2023
4,360‌
4,678‌
2.63%,
03/31/2025
1,805‌
2,005‌
2.63%,
12/31/2025
5,000‌
5,619‌
2.63%,
02/15/2029
6,785‌
7,951‌
2.75%,
08/15/2021
3,645‌
3,750‌
2.75%,
09/15/2021
4,285‌
4,418‌
2.75%,
04/30/2023
4,205‌
4,510‌
2.75%,
07/31/2023
2,700‌
2,913‌
2.75%,
08/31/2023
3,000‌
3,243‌
2.75%,
11/15/2023
5,656‌
6,141‌
2.75%,
02/15/2024
5,336‌
5,826‌
2.75%,
02/28/2025
3,535‌
3,941‌
2.75%,
06/30/2025
1,280‌
1,436‌
2.75%,
08/31/2025
5,225‌
5,876‌
2.75%,
02/15/2028
7,605‌
8,871‌
2.75%,
08/15/2042
1,591‌
2,040‌
2.75%,
11/15/2042
2,610‌
3,343‌
2.75%,
08/15/2047
4,280‌
5,592‌
2.75%,
11/15/2047
1,375‌
1,799‌
2.88%,
10/15/2021
4,110‌
4,253‌
2.88%,
11/15/2021
3,235‌
3,354‌
2.88%,
10/31/2023
3,000‌
3,267‌
2.88%,
11/30/2023
2,935‌
3,202‌
2.88%,
04/30/2025
2,475‌
2,783‌
2.88%,
05/31/2025
4,120‌
4,640‌
2.88%,
07/31/2025
2,000‌
2,259‌
2.88%,
11/30/2025
3,435‌
3,902‌
2.88%,
05/15/2028
4,400‌
5,193‌
2.88%,
08/15/2028
5,140‌
6,087‌
2.88%,
05/15/2043
5,703‌
7,450‌
2.88%,
08/15/2045
4,255‌
5,609‌
2.88%,
11/15/2046
850‌
1,130‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.88%,
05/15/2049
$
5,720‌
$
7,739‌
3.00%,
09/30/2025
820‌
934‌
3.00%,
10/31/2025
4,500‌
5,133‌
3.00%,
05/15/2042
1,200‌
1,598‌
3.00%,
11/15/2044
4,995‌
6,687‌
3.00%,
05/15/2045
4,260‌
5,720‌
3.00%,
11/15/2045
3,500‌
4,718‌
3.00%,
02/15/2047
4,540‌
6,185‌
3.00%,
05/15/2047
3,400‌
4,634‌
3.00%,
02/15/2048
4,050‌
5,544‌
3.00%,
08/15/2048
3,700‌
5,088‌
3.00%,
02/15/2049
4,115‌
5,681‌
3.13%,
11/15/2028
4,855‌
5,870‌
3.13%,
11/15/2041
1,700‌
2,302‌
3.13%,
02/15/2042
1,300‌
1,764‌
3.13%,
02/15/2043
4,020‌
5,451‌
3.13%,
08/15/2044
4,060‌
5,536‌
3.13%,
05/15/2048
4,020‌
5,634‌
3.38%,
05/15/2044
3,425‌
4,844‌
3.38%,
11/15/2048
6,575‌
9,662‌
3.63%,
08/15/2043
3,570‌
5,214‌
3.63%,
02/15/2044
5,760‌
8,431‌
3.75%,
11/15/2043
1,165‌
1,734‌
3.88%,
08/15/2040
1,669‌
2,488‌
4.25%,
11/15/2040
1,135‌
1,773‌
4.38%,
11/15/2039
1,175‌
1,848‌
4.38%,
05/15/2040
1,489‌
2,352‌
4.38%,
05/15/2041
1,660‌
2,640‌
4.50%,
02/15/2036
2,000‌
3,062‌
4.50%,
05/15/2038
710‌
1,120‌
4.50%,
08/15/2039
1,235‌
1,967‌
4.63%,
02/15/2040
1,100‌
1,784‌
4.75%,
02/15/2041
2,628‌
4,360‌
5.25%,
11/15/2028
2,415‌
3,343‌
5.25%,
02/15/2029
2,000‌
2,789‌
5.38%,
02/15/2031
3,616‌
5,373‌
6.00%,
02/15/2026
2,000‌
2,628‌
6.13%,
11/15/2027
2,225‌
3,137‌
6.13%,
08/15/2029
1,000‌
1,494‌
6.25%,
05/15/2030
1,500‌
2,311‌
6.38%,
08/15/2027
1,830‌
2,588‌
6.88%,
08/15/2025
1,000‌
1,334‌
8.00%,
11/15/2021
510‌
565‌
$
982,301‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
1,643,274‌
Total
Investments
$
2,671,199‌
Other
Assets
and
Liabilities
-  (5.60)%
(141,740‌)
TOTAL
NET
ASSETS
-
100.00%
$
2,529,459‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$3,521
or
0.14%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$20,144
or
0.80%
of
net
assets.
(g)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(h)
Security
purchased
on
a
when-issued
basis.
Schedule
of
Investments
Bond
Market
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
98
(i)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(j)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(k)
Credit
support
indicates
investments
that
benefit
from
credit
enhancement
or
liquidity
support
provided
by
a
third
party
bank,
institution,
or
government
agency.
(l)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.  See
Notes
to
Financial
Statements
for
additional
information.
Portfolio
Summary  (unaudited)
Sector
Percent
Government
43.21‌%
Mortgage
Securities
27.95‌%
Financial
8.11‌%
Money
Market
Funds
7.48‌%
Consumer,
Non-cyclical
4.65‌%
Communications
2.51‌%
Energy
2.05‌%
Industrial
1.88‌%
Utilities
1.85‌%
Technology
1.82‌%
Consumer,
Cyclical
1.30‌%
Investment
Companies
1.19‌%
Basic
Materials
0.55‌%
Revenue
Bonds
0.41‌%
Asset
Backed
Securities
0.35‌%
General
Obligation
Unlimited
0.22‌%
Insured
0.05‌%
General
Obligation
Limited
0.02‌%
Other
Assets
and
Liabilities
(5.60‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
81,892‌
$
767,269‌
$
663,543‌
$
185,618‌
$
81,892‌
$
767,269‌
$
663,543‌
$
185,618‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
250‌
$
—‌
$
—‌
$
—‌
$
250‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
99
INVESTMENT
COMPANIES
-
7.54%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
4.36%
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
22,000‌
$
2,959‌
SPDR
Bloomberg
Barclays
High
Yield
Bond
ETF
83,000‌
8,396‌
$
11,355‌
Money
Market
Funds
-
3.18%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
1,122,614‌
1,123‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
7,168,780‌
7,169‌
$
8,292‌
TOTAL
INVESTMENT
COMPANIES
$
19,647‌
BONDS
-
61.23%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
1.69%
Boeing
Co/The
2.70%,
02/01/2027
$
540‌
$
527‌
2.80%,
03/01/2024
300‌
304‌
3.10%,
05/01/2026
190‌
194‌
3.20%,
03/01/2029
200‌
198‌
3.50%,
03/01/2039
65‌
58‌
3.63%,
03/01/2048
155‌
136‌
3.75%,
02/01/2050
150‌
135‌
3.90%,
05/01/2049
75‌
69‌
4.88%,
05/01/2025
380‌
414‌
Lockheed
Martin
Corp
1.85%,
06/15/2030
110‌
113‌
2.90%,
03/01/2025
360‌
396‌
4.09%,
09/15/2052
60‌
78‌
Raytheon
Technologies
Corp
3.50%,
03/15/2027
(e)
215‌
242‌
3.95%,
08/16/2025
390‌
444‌
4.45%,
11/16/2038
115‌
141‌
4.50%,
06/01/2042
205‌
256‌
5.40%,
05/01/2035
130‌
176‌
SSL
Robotics
LLC
9.75%,
12/31/2023
(e)
135‌
144‌
TransDigm
Inc
6.25%,
03/15/2026
(e)
75‌
75‌
7.50%,
03/15/2027
140‌
134‌
Triumph
Group
Inc
5.25%,
06/01/2022
55‌
47‌
6.25%,
09/15/2024
(e)
20‌
17‌
7.75%,
08/15/2025
(f)
160‌
120‌
$
4,418‌
Agriculture
-
0.67%
Altria
Group
Inc
2.35%,
05/06/2025
155‌
163‌
4.50%,
05/02/2043
5‌
6‌
5.80%,
02/14/2039
85‌
105‌
5.95%,
02/14/2049
35‌
46‌
BAT
Capital
Corp
2.76%,
08/15/2022
395‌
409‌
3.22%,
08/15/2024
170‌
182‌
3.56%,
08/15/2027
220‌
237‌
4.54%,
08/15/2047
120‌
130‌
JBS
Investments
II
GmbH
7.00%,
01/15/2026
(e)
200‌
210‌
Reynolds
American
Inc
5.70%,
08/15/2035
165‌
203‌
5.85%,
08/15/2045
45‌
55‌
$
1,746‌
Airlines
-
0.89%
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95%,
07/15/2024
521‌
422‌
American
Airlines
2014-1
Class
A
Pass
Through
Trust
3.70%,
04/01/2028
116‌
98‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Airlines
(continued)
American
Airlines
2015-1
Class
A
Pass
Through
Trust
3.38%,
11/01/2028
$
23‌
$
19‌
American
Airlines
2016-3
Class
A
Pass
Through
Trust
3.25%,
04/15/2030
195‌
159‌
Continental
Airlines
2007-1
Class
A
Pass
Through
Trust
5.98%,
10/19/2023
85‌
80‌
Continental
Airlines
2012-1
Class
A
Pass
Through
Trust
4.15%,
10/11/2025
305‌
286‌
JetBlue
2019-1
Class
AA
Pass
Through
Trust
2.75%,
11/15/2033
133‌
126‌
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd
6.50%,
06/20/2027
(g)
45‌
45‌
Southwest
Airlines
Co
4.75%,
05/04/2023
195‌
200‌
5.25%,
05/04/2025
125‌
132‌
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
224‌
204‌
United
Airlines
2018-1
Class
A
Pass
Through
Trust
3.70%,
09/01/2031
191‌
153‌
United
Airlines
2018-1
Class
AA
Pass
Through
Trust
3.50%,
09/01/2031
187‌
175‌
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
160‌
144‌
US
Airways
2013-1
Class
A
Pass
Through
Trust
3.95%,
05/15/2027
93‌
77‌
$
2,320‌
Automobile
Asset
Backed
Securities
-
2.51%
AmeriCredit
Automobile
Receivables
Trust
2020-1
0.54%,
03/20/2023
2,500‌
2,499‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
Carmax
Auto
Owner
Trust
2018-4
0.38%,
02/15/2022
395‌
395‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
Drive
Auto
Receivables
Trust
2020-2
0.72%,
07/17/2023
500‌
500‌
1.00
x
1
Month
USD
LIBOR
+
0.53%
Ford
Credit
Auto
Lease
Trust
2019-B
2.28%,
02/15/2022
274‌
275‌
Mercedes-Benz
Auto
Lease
Trust
2019-A
3.10%,
11/15/2021
325‌
328‌
Santander
Retail
Auto
Lease
Trust
2019-A
2.72%,
01/20/2022
(e)
1,103‌
1,113‌
Tesla
Auto
Lease
Trust
2019-A
2.13%,
04/20/2022
(e)
915‌
925‌
World
Omni
Auto
Receivables
Trust
1.05%,
03/15/2021
381‌
382‌
World
Omni
Auto
Receivables
Trust
2019-A
3.02%,
04/15/2022
136‌
136‌
$
6,553‌
Automobile
Floor
Plan
Asset
Backed
Securities
-
0.96%
GMF
Floorplan
Owner
Revolving
Trust
0.50%,
09/15/2022
(e)
2,500‌
2,498‌
1.00
x
1
Month
USD
LIBOR
+
0.32%
Automobile
Manufacturers
-
1.18%
BMW
US
Capital
LLC
3.80%,
04/06/2023
(e)
305‌
328‌
3.90%,
04/09/2025
(e)
550‌
610‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
100
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Manufacturers
(continued)
Daimler
Finance
North
America
LLC
2.70%,
08/03/2020
(e)
$
450‌
$
451‌
Ford
Motor
Co
8.50%,
04/21/2023
80‌
85‌
9.00%,
04/22/2025
80‌
86‌
9.63%,
04/22/2030
(f)
25‌
30‌
Ford
Motor
Credit
Co
LLC
4.14%,
02/15/2023
520‌
509‌
General
Motors
Co
6.25%,
10/02/2043
120‌
127‌
6.60%,
04/01/2036
275‌
297‌
General
Motors
Financial
Co
Inc
3.45%,
01/14/2022
365‌
371‌
Navistar
International
Corp
6.63%,
11/01/2025
(e)
155‌
147‌
9.50%,
05/01/2025
(e)
25‌
27‌
$
3,068‌
Automobile
Parts
&
Equipment
-
0.06%
American
Axle
&
Manufacturing
Inc
6.63%,
10/15/2022
60‌
61‌
6.88%,
07/01/2028
40‌
39‌
Dana
Inc
5.38%,
11/15/2027
40‌
40‌
5.63%,
06/15/2028
25‌
25‌
$
165‌
Banks
-
9.44%
ANZ
New
Zealand
Int'l
Ltd/London
2.55%,
02/13/2030
(e),(f)
300‌
321‌
Banco
de
Credito
del
Peru
2.70%,
01/11/2025
(e)
100‌
100‌
Banco
Internacional
del
Peru
SAA
Interbank
3.25%,
10/04/2026
(e)
150‌
151‌
Banco
Santander
Mexico
SA
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand
5.38%,
04/17/2025
(e)
150‌
164‌
Banco
Santander
SA
2.75%,
05/28/2025
600‌
622‌
Bancolombia
SA
3.00%,
01/29/2025
200‌
196‌
Bank
of
America
Corp
2.68%,
06/19/2041
(h)
355‌
365‌
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.88%,
10/22/2030
(h)
305‌
330‌
3
Month
USD
LIBOR
+
1.19%
3.19%,
07/23/2030
(h)
165‌
182‌
3
Month
USD
LIBOR
+
1.18%
3.46%,
03/15/2025
(h)
135‌
146‌
3
Month
USD
LIBOR
+
0.97%
4.20%,
08/26/2024
700‌
777‌
4.25%,
10/22/2026
150‌
172‌
4.30%,
12/31/2099
(h),(i)
175‌
157‌
3
Month
USD
LIBOR
+
2.66%
Bank
of
Montreal
3.80%,
12/15/2032
(h)
185‌
199‌
USD
Swap
Semi-Annual
5
Year
+
1.43%
Barclays
PLC
2.85%,
05/07/2026
(h)
400‌
418‌
3
Month
USD
LIBOR
+
2.45%
7.75%,
12/31/2049
(h),(i)
200‌
203‌
USD
Swap
Semi-Annual
5
Year
+
4.84%
BNP
Paribas
SA
2.22%,
06/09/2026
(e),(h)
400‌
410‌
United
States
Secured
Overnight
Financing
Rate
+
2.07%
4.50%,
12/31/2049
(e),(h),(i)
310‌
272‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.94%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
CIT
Group
Inc
3.93%,
06/19/2024
(h)
$
35‌
$
34‌
United
States
Secured
Overnight
Financing
Rate
+
3.83%
4.13%,
03/09/2021
50‌
50‌
5.00%,
08/15/2022
120‌
123‌
5.80%,
12/31/2049
(h),(i)
95‌
73‌
3
Month
USD
LIBOR
+
3.97%
Citigroup
Inc
3.11%,
04/08/2026
(h)
495‌
532‌
United
States
Secured
Overnight
Financing
Rate
+
2.75%
3.52%,
10/27/2028
(h)
60‌
66‌
3
Month
USD
LIBOR
+
1.15%
4.65%,
07/23/2048
105‌
137‌
4.70%,
12/31/2049
(h),(i)
75‌
67‌
United
States
Secured
Overnight
Financing
Rate
+
3.23%
Cooperatieve
Rabobank
UA
3.95%,
11/09/2022
300‌
317‌
Credit
Suisse
AG/New
York
NY
2.95%,
04/09/2025
980‌
1,064‌
Credit
Suisse
Group
AG
2.19%,
06/05/2026
(e),(h)
1,000‌
1,013‌
United
States
Secured
Overnight
Financing
Rate
+
2.04%
4.19%,
04/01/2031
(e),(h)
250‌
285‌
United
States
Secured
Overnight
Financing
Rate
+
3.73%
5.10%,
12/31/2049
(e),(h),(i)
200‌
190‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.29%
Danske
Bank
A/S
3.00%,
09/20/2022
(e),(h)
1,000‌
1,016‌
3
Month
USD
LIBOR
+
1.25%
DBS
Group
Holdings
Ltd
4.52%,
12/11/2028
(e),(h)
315‌
340‌
USD
Swap
Rate
NY
5
Year
+
1.59%
First
Republic
Bank/CA
2.50%,
06/06/2022
250‌
257‌
4.63%,
02/13/2047
500‌
600‌
Goldman
Sachs
Group
Inc/The
3.63%,
02/20/2024
275‌
299‌
3.85%,
01/26/2027
160‌
180‌
5.75%,
01/24/2022
370‌
399‌
6.75%,
10/01/2037
300‌
437‌
HSBC
Holdings
PLC
2.63%,
11/07/2025
(h)
335‌
347‌
3
Month
USD
LIBOR
+
1.14%
4.25%,
03/14/2024
435‌
469‌
JPMorgan
Chase
&
Co
2.08%,
04/22/2026
(h)
335‌
348‌
United
States
Secured
Overnight
Financing
Rate
+
1.85%
3.96%,
11/15/2048
(h)
20‌
24‌
3
Month
USD
LIBOR
+
1.38%
4.60%,
12/31/2049
(h),(i)
765‌
683‌
United
States
Secured
Overnight
Financing
Rate
+
3.13%
4.95%,
06/01/2045
140‌
188‌
5.50%,
10/15/2040
260‌
373‌
Lloyds
Banking
Group
PLC
3.87%,
07/09/2025
(h)
850‌
923‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
3.50%
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
101
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Morgan
Stanley
2.19%,
04/28/2026
(h)
$
150‌
$
156‌
United
States
Secured
Overnight
Financing
Rate
+
1.99%
3.62%,
04/01/2031
(h)
170‌
194‌
United
States
Secured
Overnight
Financing
Rate
+
3.12%
5.00%,
11/24/2025
330‌
385‌
5.55%,
12/31/2049
(h),(i)
565‌
519‌
3
Month
USD
LIBOR
+
3.81%
6.38%,
07/24/2042
120‌
187‌
NatWest
Markets
PLC
2.38%,
05/21/2023
(e)
200‌
205‌
Popular
Inc
6.13%,
09/14/2023
65‌
66‌
Royal
Bank
of
Scotland
Group
PLC
4.27%,
03/22/2025
(h)
200‌
218‌
3
Month
USD
LIBOR
+
1.76%
5.13%,
05/28/2024
890‌
974‌
6.00%,
12/31/2049
(f),(h),(i)
425‌
431‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.63%
7.50%,
12/31/2049
(h),(i)
425‌
427‌
USD
Swap
Semi-Annual
5
Year
+
5.80%
Santander
UK
PLC
5.00%,
11/07/2023
(e)
287‌
313‌
Standard
Chartered
PLC
2.82%,
01/30/2026
(e),(h)
235‌
240‌
3
Month
USD
LIBOR
+
1.21%
6.00%,
12/31/2049
(e),(h),(i)
690‌
686‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.66%
Synchrony
Bank
3.00%,
06/15/2022
1,125‌
1,149‌
UBS
AG/London
1.75%,
04/21/2022
(e)
460‌
469‌
UBS
Group
AG
6.88%,
12/31/2049
(h),(i)
440‌
445‌
USD
Swap
Semi-Annual
(VS
6
Month)
5
Year
+
5.50%
US
Bancorp
3.00%,
07/30/2029
175‌
190‌
Wells
Fargo
&
Co
2.39%,
06/02/2028
(h)
545‌
563‌
United
States
Secured
Overnight
Financing
Rate
+
2.10%
3.07%,
04/30/2041
(h)
105‌
110‌
United
States
Secured
Overnight
Financing
Rate
+
2.53%
4.40%,
06/14/2046
170‌
203‌
Westpac
Banking
Corp
4.11%,
07/24/2034
(h)
85‌
94‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
315‌
371‌
$
24,614‌
Beverages
-
0.64%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
115‌
129‌
4.90%,
02/01/2046
490‌
600‌
Anheuser-Busch
InBev
Worldwide
Inc
2.50%,
07/15/2022
27‌
28‌
5.45%,
01/23/2039
225‌
284‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Constellation
Brands
Inc
2.88%,
05/01/2030
$
90‌
$
95‌
3.15%,
08/01/2029
410‌
440‌
4.40%,
11/15/2025
70‌
81‌
$
1,657‌
Biotechnology
-
0.07%
Amgen
Inc
2.20%,
02/21/2027
175‌
184‌
Building
Materials
-
0.23%
BMC
East
LLC
5.50%,
10/01/2024
(e)
100‌
101‌
Builders
FirstSource
Inc
5.00%,
03/01/2030
(e)
65‌
61‌
6.75%,
06/01/2027
(e)
85‌
87‌
Carrier
Global
Corp
2.24%,
02/15/2025
(e)
155‌
158‌
Martin
Marietta
Materials
Inc
2.50%,
03/15/2030
115‌
116‌
Norbord
Inc
5.75%,
07/15/2027
(e)
65‌
66‌
$
589‌
Chemicals
-
0.80%
Air
Products
and
Chemicals
Inc
2.70%,
05/15/2040
85‌
89‌
Aruba
Investments
Inc
8.75%,
02/15/2023
(e)
203‌
204‌
Blue
Cube
Spinco
LLC
9.75%,
10/15/2023
70‌
72‌
Braskem
Netherlands
Finance
BV
4.50%,
01/31/2030
(e)
200‌
183‌
CF
Industries
Inc
4.95%,
06/01/2043
135‌
146‌
Consolidated
Energy
Finance
SA
6.50%,
05/15/2026
(e)
165‌
139‌
DuPont
de
Nemours
Inc
5.32%,
11/15/2038
165‌
209‌
5.42%,
11/15/2048
105‌
138‌
EI
du
Pont
de
Nemours
and
Co
1.70%,
07/15/2025
175‌
181‌
2.30%,
07/15/2030
35‌
36‌
LYB
International
Finance
III
LLC
2.88%,
05/01/2025
250‌
266‌
NOVA
Chemicals
Corp
5.25%,
08/01/2023
(e)
55‌
53‌
PolyOne
Corp
5.75%,
05/15/2025
(e)
75‌
77‌
SABIC
Capital
II
BV
4.00%,
10/10/2023
(e)
200‌
213‌
Valvoline
Inc
4.25%,
02/15/2030
(e)
30‌
30‌
4.38%,
08/15/2025
(e)
15‌
15‌
Westlake
Chemical
Corp
3.38%,
06/15/2030
35‌
36‌
$
2,087‌
Commercial
Mortgage
Backed
Securities
-
1.96%
BANK
2017-BNK9
4.03%,
11/15/2054
(j)
500‌
507‌
Benchmark
2019-B15
Mortgage
Trust
3.56%,
12/15/2072
250‌
252‌
Citigroup
Commercial
Mortgage
Trust
2015-GC27
3.57%,
02/10/2048
900‌
946‌
Citigroup
Commercial
Mortgage
Trust
2016-GC37
3.58%,
04/10/2049
350‌
369‌
Credit
Suisse
Commercial
Mortgage
Trust
Series
2006-C5
1.09%,
12/15/2039
(j),(k)
130‌
2‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
102
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
GS
Mortgage
Securities
Trust
2011-GC5
1.49%,
08/10/2044
(e),(j),(k)
$
9,057‌
$
85‌
GS
Mortgage
Securities
Trust
2012-GCJ7
2.35%,
05/10/2045
(j),(k)
1,595‌
31‌
GS
Mortgage
Securities
Trust
2013-GC16
1.21%,
11/10/2046
(j),(k)
1,903‌
54‌
GS
Mortgage
Securities
Trust
2014-GC26
1.11%,
11/10/2047
(j),(k)
4,183‌
143‌
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
375‌
410‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.61%,
08/15/2046
(e),(j)
350‌
346‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2012-LC9
1.65%,
12/15/2047
(j),(k)
1,792‌
51‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2016-JP3
3.14%,
08/15/2049
500‌
520‌
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C24
4.55%,
11/15/2047
(j)
500‌
430‌
LB-UBS
Commercial
Mortgage
Trust
2007-C1
0.35%,
02/15/2040
(j),(k)
397‌
—‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2012-C5
1.58%,
08/15/2045
(e),(j),(k)
3,129‌
69‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C14
1.15%,
02/15/2047
(j),(k)
5,832‌
126‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C16
1.16%,
06/15/2047
(j),(k)
3,485‌
99‌
MSBAM
Commercial
Mortgage
Securities
Trust
2012-CKSV
1.19%,
10/15/2030
(e),(j),(k)
3,500‌
65‌
UBS-Barclays
Commercial
Mortgage
Trust
2012-C4
1.76%,
12/10/2045
(e),(j),(k)
1,172‌
33‌
3.32%,
12/10/2045
(e)
500‌
510‌
WFRBS
Commercial
Mortgage
Trust
2013-C12
1.34%,
03/15/2048
(e),(j),(k)
2,362‌
59‌
$
5,107‌
Commercial
Services
-
0.64%
ADT
Security
Corp/The
6.25%,
10/15/2021
45‌
46‌
Ahern
Rentals
Inc
7.38%,
05/15/2023
(e)
145‌
70‌
Brink's
Co/The
5.50%,
07/15/2025
(e)
110‌
112‌
CoStar
Group
Inc
2.80%,
07/15/2030
(e),(g)
140‌
143‌
DP
World
PLC
6.85%,
07/02/2037
100‌
121‌
Garda
World
Security
Corp
9.50%,
11/01/2027
(e)
126‌
133‌
Global
Payments
Inc
2.65%,
02/15/2025
180‌
191‌
PayPal
Holdings
Inc
2.65%,
10/01/2026
240‌
261‌
Prime
Security
Services
Borrower
LLC
/
Prime
Finance
Inc
6.25%,
01/15/2028
(e)
110‌
104‌
Refinitiv
US
Holdings
Inc
6.25%,
05/15/2026
(e)
95‌
101‌
8.25%,
11/15/2026
(e)
60‌
65‌
Tms
International
Holding
Corp
7.25%,
08/15/2025
(e)
195‌
159‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
(continued)
United
Rentals
North
America
Inc
4.63%,
10/15/2025
$
75‌
$
75‌
4.88%,
01/15/2028
75‌
77‌
$
1,658‌
Computers
-
0.86%
Apple
Inc
2.75%,
01/13/2025
220‌
239‌
4.65%,
02/23/2046
110‌
152‌
Dell
International
LLC
/
EMC
Corp
4.42%,
06/15/2021
(e)
365‌
375‌
4.90%,
10/01/2026
(e)
370‌
408‌
5.45%,
06/15/2023
(e)
250‌
274‌
7.13%,
06/15/2024
(e)
235‌
243‌
8.35%,
07/15/2046
(e)
125‌
167‌
NetApp
Inc
1.88%,
06/22/2025
290‌
294‌
Seagate
HDD
Cayman
4.13%,
01/15/2031
(e)
80‌
84‌
$
2,236‌
Credit
Card
Asset
Backed
Securities
-
0.86%
Chase
Issuance
Trust
0.38%,
04/17/2023
1,238‌
1,239‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
0.73%,
06/15/2023
1,000‌
1,004‌
1.00
x
1
Month
USD
LIBOR
+
0.55%
$
2,243‌
Distribution
&
Wholesale
-
0.07%
American
Builders
&
Contractors
Supply
Co
Inc
4.00%,
01/15/2028
(e)
90‌
87‌
5.88%,
05/15/2026
(e)
105‌
104‌
$
191‌
Diversified
Financial
Services
-
1.61%
AerCap
Holdings
NV
5.88%,
10/10/2079
(h)
150‌
108‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.54%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
4.50%,
09/15/2023
(g)
705‌
705‌
Air
Lease
Corp
3.38%,
07/01/2025
370‌
371‌
Ally
Financial
Inc
4.25%,
04/15/2021
30‌
31‌
Blackstone
Holdings
Finance
Co
LLC
3.50%,
09/10/2049
(e)
50‌
52‌
Brookfield
Finance
Inc
4.00%,
04/01/2024
870‌
943‌
4.85%,
03/29/2029
100‌
118‌
Brookfield
Finance
LLC
3.45%,
04/15/2050
310‌
297‌
Credit
Acceptance
Corp
5.13%,
12/31/2024
(e)
30‌
29‌
6.63%,
03/15/2026
205‌
206‌
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
200‌
203‌
Global
Aircraft
Leasing
Co
Ltd
6.50%,
PIK
7.25%,
09/15/2024
(e),(j),(l)
100‌
67‌
ILFC
E-Capital
Trust
II
3.27%,
12/21/2065
(e),(j)
100‌
52‌
Navient
Corp
5.00%,
03/15/2027
50‌
42‌
6.63%,
07/26/2021
125‌
122‌
6.75%,
06/15/2026
140‌
130‌
Nuveen
Finance
LLC
4.13%,
11/01/2024
(e)
290‌
327‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
103
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Springleaf
Finance
Corp
5.63%,
03/15/2023
$
75‌
$
76‌
6.63%,
01/15/2028
130‌
129‌
6.88%,
03/15/2025
175‌
180‌
8.88%,
06/01/2025
5‌
5‌
$
4,193‌
Electric
-
3.59%
Alabama
Power
Co
3.45%,
10/01/2049
160‌
175‌
Avangrid
Inc
3.20%,
04/15/2025
490‌
536‌
Centrais
Eletricas
Brasileiras
SA
3.63%,
02/04/2025
(e)
200‌
196‌
CMS
Energy
Corp
3.00%,
05/15/2026
75‌
81‌
4.70%,
03/31/2043
120‌
144‌
Commonwealth
Edison
Co
4.00%,
03/01/2049
225‌
279‌
Dominion
Energy
Inc
2.58%,
07/01/2020
900‌
900‌
3.90%,
10/01/2025
100‌
113‌
4.25%,
06/01/2028
85‌
98‌
DTE
Electric
Co
3.95%,
03/01/2049
60‌
73‌
DTE
Energy
Co
3.40%,
06/15/2029
280‌
302‌
Duke
Energy
Florida
LLC
3.80%,
07/15/2028
220‌
257‌
Enel
Chile
SA
4.88%,
06/12/2028
105‌
117‌
Evergy
Inc
2.90%,
09/15/2029
245‌
262‌
Exelon
Corp
3.50%,
06/01/2022
215‌
225‌
FirstEnergy
Corp
1.60%,
01/15/2026
145‌
146‌
2.25%,
09/01/2030
50‌
50‌
3.40%,
03/01/2050
250‌
264‌
Fortis
Inc/Canada
3.06%,
10/04/2026
103‌
111‌
Georgia
Power
Co
3.70%,
01/30/2050
50‌
55‌
4.30%,
03/15/2043
80‌
95‌
Indiantown
Cogeneration
LP
9.77%,
12/15/2020
10‌
11‌
MidAmerican
Energy
Co
3.15%,
04/15/2050
120‌
136‌
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
180‌
186‌
4.75%,
04/30/2043
(h)
125‌
125‌
3
Month
USD
LIBOR
+
2.91%
NextEra
Energy
Capital
Holdings
Inc
2.75%,
05/01/2025
370‌
400‌
2.75%,
11/01/2029
145‌
156‌
3.50%,
04/01/2029
300‌
339‌
NextEra
Energy
Operating
Partners
LP
4.25%,
07/15/2024
(e)
145‌
147‌
NRG
Energy
Inc
5.25%,
06/15/2029
(e)
80‌
84‌
6.63%,
01/15/2027
110‌
115‌
7.25%,
05/15/2026
85‌
90‌
Pacific
Gas
and
Electric
Co
1.75%,
06/16/2022
735‌
736‌
Perusahaan
Perseroan
Persero
PT
Perusahaan
Listrik
Negara
3.88%,
07/17/2029
(e)
200‌
209‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
PPL
Electric
Utilities
Corp
3.95%,
06/01/2047
$
85‌
$
103‌
4.75%,
07/15/2043
90‌
117‌
PPL
WEM
Ltd
/
Western
Power
Distribution
PLC
5.38%,
05/01/2021
(e)
735‌
753‌
Public
Service
Co
of
Colorado
4.05%,
09/15/2049
55‌
68‌
Southern
California
Edison
Co
4.20%,
03/01/2029
125‌
146‌
4.88%,
03/01/2049
150‌
196‌
Southern
Co/The
5.50%,
03/15/2057
(h)
50‌
51‌
3
Month
USD
LIBOR
+
3.63%
Tucson
Electric
Power
Co
4.85%,
12/01/2048
25‌
33‌
Virginia
Electric
and
Power
Co
3.80%,
04/01/2028
180‌
209‌
4.60%,
12/01/2048
60‌
79‌
Vistra
Operations
Co
LLC
5.50%,
09/01/2026
(e)
100‌
102‌
5.63%,
02/15/2027
(e)
55‌
56‌
Xcel
Energy
Inc
2.60%,
12/01/2029
205‌
220‌
$
9,346‌
Electrical
Components
&
Equipment
-
0.14%
Energizer
Holdings
Inc
4.75%,
06/15/2028
(e),(g)
85‌
83‌
5.50%,
06/15/2025
(e)
65‌
67‌
6.38%,
07/15/2026
(e)
60‌
62‌
WESCO
Distribution
Inc
7.13%,
06/15/2025
(e)
90‌
95‌
7.25%,
06/15/2028
(e)
45‌
48‌
$
355‌
Electronics
-
0.08%
Sensata
Technologies
BV
5.00%,
10/01/2025
(e)
155‌
165‌
Sensata
Technologies
Inc
4.38%,
02/15/2030
(e)
55‌
54‌
$
219‌
Engineering
&
Construction
-
0.02%
MasTec
Inc
4.88%,
03/15/2023
60‌
60‌
Entertainment
-
0.46%
Boyne
USA
Inc
7.25%,
05/01/2025
(e)
150‌
157‌
Caesars
Resort
Collection
LLC
/
CRC
Finco
Inc
5.25%,
10/15/2025
(e)
100‌
87‌
CCM
Merger
Inc
6.00%,
03/15/2022
(e)
145‌
144‌
Colt
Merger
Sub
Inc
6.25%,
07/01/2025
(e),(g)
130‌
129‌
8.13%,
07/01/2027
(e),(g)
120‌
116‌
Eldorado
Resorts
Inc
6.00%,
04/01/2025
35‌
37‌
6.00%,
09/15/2026
185‌
200‌
Enterprise
Development
Authority/The
12.00%,
07/15/2024
(e)
125‌
126‌
Lions
Gate
Capital
Holdings
LLC
5.88%,
11/01/2024
(e)
80‌
76‌
Scientific
Games
International
Inc
8.63%,
07/01/2025
(g)
55‌
51‌
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp
5.13%,
10/01/2029
(e)
100‌
89‌
$
1,212‌
Environmental
Control
-
0.25%
Republic
Services
Inc
2.30%,
03/01/2030
140‌
146‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
104
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Environmental
Control
(continued)
Waste
Connections
Inc
2.60%,
02/01/2030
$
135‌
$
142‌
4.25%,
12/01/2028
300‌
355‌
$
643‌
Food
-
0.75%
Albertsons
Cos
Inc
/
Safeway
Inc
/
New
Albertsons
LP
/
Albertsons
LLC
4.63%,
01/15/2027
(e)
115‌
115‌
5.75%,
03/15/2025
70‌
71‌
5.88%,
02/15/2028
(e)
90‌
93‌
6.63%,
06/15/2024
105‌
108‌
Gruma
SAB
de
CV
4.88%,
12/01/2024
(e)
350‌
375‌
Ingles
Markets
Inc
5.75%,
06/15/2023
113‌
113‌
JBS
USA
LUX
SA
/
JBS
USA
Finance
Inc
5.75%,
06/15/2025
(e)
160‌
162‌
JBS
USA
LUX
SA
/
JBS
USA
Food
Co
/
JBS
USA
Finance
Inc
6.50%,
04/15/2029
(e)
45‌
48‌
Kraft
Heinz
Foods
Co
4.38%,
06/01/2046
125‌
123‌
McCormick
&
Co
Inc/MD
3.15%,
08/15/2024
225‌
244‌
Post
Holdings
Inc
4.63%,
04/15/2030
(e)
30‌
29‌
5.00%,
08/15/2026
(e)
225‌
226‌
TreeHouse
Foods
Inc
4.88%,
03/15/2022
40‌
40‌
Want
Want
China
Finance
Ltd
2.88%,
04/27/2022
200‌
204‌
$
1,951‌
Gas
-
0.25%
Dominion
Energy
Gas
Holdings
LLC
3.00%,
11/15/2029
115‌
123‌
Piedmont
Natural
Gas
Co
Inc
3.50%,
06/01/2029
180‌
205‌
Southern
California
Gas
Co
2.55%,
02/01/2030
130‌
140‌
Southern
Co
Gas
Capital
Corp
4.40%,
05/30/2047
165‌
196‌
$
664‌
Healthcare
-
Products
-
0.50%
Abbott
Laboratories
4.90%,
11/30/2046
185‌
266‌
Boston
Scientific
Corp
3.45%,
03/01/2024
290‌
314‌
4.55%,
03/01/2039
260‌
319‌
4.70%,
03/01/2049
215‌
274‌
Medtronic
Inc
4.38%,
03/15/2035
106‌
139‌
$
1,312‌
Healthcare
-
Services
-
0.90%
Centene
Corp
3.38%,
02/15/2030
265‌
267‌
4.25%,
12/15/2027
20‌
21‌
4.63%,
12/15/2029
70‌
74‌
4.75%,
05/15/2022
155‌
157‌
5.25%,
04/01/2025
(e)
200‌
206‌
5.38%,
06/01/2026
(e)
100‌
104‌
CHS/Community
Health
Systems
Inc
6.25%,
03/31/2023
110‌
103‌
8.00%,
03/15/2026
(e)
105‌
99‌
DaVita
Inc
4.63%,
06/01/2030
(e)
100‌
99‌
HCA
Inc
5.88%,
05/01/2023
150‌
162‌
5.88%,
02/01/2029
275‌
311‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
Tenet
Healthcare
Corp
4.63%,
07/15/2024
$
95‌
$
93‌
4.63%,
09/01/2024
(e)
80‌
78‌
5.13%,
11/01/2027
(e)
105‌
104‌
7.50%,
04/01/2025
(e)
60‌
64‌
UnitedHealth
Group
Inc
2.75%,
05/15/2040
235‌
252‌
3.50%,
08/15/2039
140‌
163‌
$
2,357‌
Home
Builders
-
0.29%
Forestar
Group
Inc
5.00%,
03/01/2028
(e)
5‌
5‌
8.00%,
04/15/2024
(e)
260‌
269‌
KB
Home
7.63%,
05/15/2023
55‌
60‌
Lennar
Corp
4.88%,
12/15/2023
80‌
84‌
LGI
Homes
Inc
6.88%,
07/15/2026
(e)
200‌
204‌
Picasso
Finance
Sub
Inc
6.13%,
06/15/2025
(e)
95‌
97‌
Williams
Scotsman
International
Inc
7.88%,
12/15/2022
(e)
25‌
26‌
$
745‌
Home
Equity
Asset
Backed
Securities
-
0.07%
Saxon
Asset
Securities
Trust
2004-1
1.88%,
03/25/2035
119‌
76‌
1.00
x
1
Month
USD
LIBOR
+
1.70%
Specialty
Underwriting
&
Residential
Finance
Trust
Series
2004-BC1
0.95%,
02/25/2035
123‌
113‌
1.00
x
1
Month
USD
LIBOR
+
0.77%
$
189‌
Insurance
-
1.94%
Acrisure
LLC
/
Acrisure
Finance
Inc
8.13%,
02/15/2024
(e)
95‌
99‌
American
International
Group
Inc
3.90%,
04/01/2026
400‌
452‌
4.50%,
07/16/2044
360‌
419‌
Arch
Capital
Finance
LLC
4.01%,
12/15/2026
125‌
142‌
5.03%,
12/15/2046
125‌
156‌
Arch
Capital
Group
Ltd
3.64%,
06/30/2050
190‌
199‌
Markel
Corp
3.35%,
09/17/2029
265‌
283‌
4.30%,
11/01/2047
95‌
107‌
Massachusetts
Mutual
Life
Insurance
Co
3.38%,
04/15/2050
(e)
105‌
108‌
New
York
Life
Insurance
Co
3.75%,
05/15/2050
(e)
120‌
136‌
PartnerRe
Finance
B
LLC
3.70%,
07/02/2029
50‌
55‌
Pricoa
Global
Funding
I
3.45%,
09/01/2023
(e)
575‌
625‌
Progressive
Corp/The
3.95%,
03/26/2050
80‌
101‌
Swiss
Re
Finance
Luxembourg
SA
5.00%,
04/02/2049
(e),(h)
200‌
224‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.58%
Voya
Financial
Inc
5.65%,
05/15/2053
(h)
360‌
363‌
3
Month
USD
LIBOR
+
3.58%
6.13%,
12/31/2049
(h),(i)
50‌
49‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.36%
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
105
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
XLIT
Ltd
4.45%,
03/31/2025
$
830‌
$
935‌
5.50%,
03/31/2045
450‌
602‌
$
5,055‌
Internet
-
0.42%
Amazon.com
Inc
1.20%,
06/03/2027
145‌
147‌
2.50%,
06/03/2050
125‌
128‌
2.70%,
06/03/2060
110‌
112‌
Baidu
Inc
3.08%,
04/07/2025
200‌
210‌
4.38%,
05/14/2024
200‌
218‌
Netflix
Inc
4.38%,
11/15/2026
200‌
208‌
NortonLifeLock
Inc
3.95%,
06/15/2022
65‌
66‌
$
1,089‌
Investment
Companies
-
0.10%
Icahn
Enterprises
LP
/
Icahn
Enterprises
Finance
Corp
4.75%,
09/15/2024
50‌
47‌
6.25%,
02/01/2022
60‌
60‌
6.25%,
05/15/2026
80‌
80‌
6.38%,
12/15/2025
65‌
65‌
$
252‌
Iron
&
Steel
-
0.56%
Cleveland-Cliffs
Inc
4.88%,
01/15/2024
(e)
55‌
52‌
6.38%,
10/15/2025
(e)
25‌
20‌
6.75%,
03/15/2026
(e)
25‌
24‌
Nucor
Corp
2.00%,
06/01/2025
130‌
135‌
2.70%,
06/01/2030
30‌
31‌
Steel
Dynamics
Inc
2.40%,
06/15/2025
220‌
227‌
2.80%,
12/15/2024
700‌
728‌
3.25%,
01/15/2031
50‌
51‌
3.45%,
04/15/2030
100‌
104‌
Vale
Overseas
Ltd
6.25%,
08/10/2026
50‌
59‌
6.88%,
11/21/2036
26‌
34‌
$
1,465‌
Leisure
Products
&
Services
-
0.01%
NCL
Corp
Ltd
3.63%,
12/15/2024
(e)
40‌
24‌
Lodging
-
0.03%
Hilton
Domestic
Operating
Co
Inc
5.38%,
05/01/2025
(e)
10‌
10‌
5.75%,
05/01/2028
(e)
10‌
10‌
MGM
Resorts
International
6.00%,
03/15/2023
60‌
61‌
$
81‌
Machinery
-
Diversified
-
0.15%
Maxim
Crane
Works
Holdings
Capital
LLC
10.13%,
08/01/2024
(e)
230‌
226‌
Westinghouse
Air
Brake
Technologies
Corp
3.20%,
06/15/2025
150‌
153‌
$
379‌
Media
-
2.91%
Altice
Financing
SA
7.50%,
05/15/2026
(e)
200‌
209‌
AMC
Networks
Inc
4.75%,
12/15/2022
37‌
37‌
4.75%,
08/01/2025
125‌
123‌
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp
4.50%,
08/15/2030
(e)
157‌
160‌
5.50%,
05/01/2026
(e)
250‌
259‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
3.70%,
04/01/2051
$
185‌
$
181‌
4.46%,
07/23/2022
320‌
341‌
4.80%,
03/01/2050
135‌
149‌
4.91%,
07/23/2025
620‌
711‌
6.48%,
10/23/2045
120‌
159‌
Comcast
Corp
3.75%,
04/01/2040
165‌
193‌
3.95%,
10/15/2025
200‌
229‌
3.97%,
11/01/2047
210‌
249‌
4.60%,
10/15/2038
280‌
356‌
4.60%,
08/15/2045
160‌
206‌
6.45%,
03/15/2037
200‌
296‌
CSC
Holdings
LLC
6.50%,
02/01/2029
(e)
208‌
227‌
6.75%,
11/15/2021
40‌
42‌
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co
5.38%,
08/15/2026
(e)
50‌
36‌
DISH
DBS
Corp
5.88%,
07/15/2022
140‌
142‌
6.75%,
06/01/2021
40‌
41‌
7.38%,
07/01/2028
(g)
50‌
50‌
Fox
Corp
3.05%,
04/07/2025
100‌
108‌
5.48%,
01/25/2039
95‌
127‌
5.58%,
01/25/2049
90‌
125‌
Meredith
Corp
6.88%,
02/01/2026
190‌
158‌
NBCUniversal
Media
LLC
4.45%,
01/15/2043
145‌
182‌
Radiate
Holdco
LLC
/
Radiate
Finance
Inc
6.63%,
02/15/2025
(e)
35‌
35‌
Time
Warner
Cable
LLC
4.00%,
09/01/2021
225‌
231‌
5.88%,
11/15/2040
135‌
167‌
6.55%,
05/01/2037
100‌
132‌
UPC
Holding
BV
5.50%,
01/15/2028
(e)
300‌
288‌
ViacomCBS
Inc
2.90%,
01/15/2027
350‌
367‌
4.38%,
03/15/2043
105‌
110‌
4.75%,
05/15/2025
215‌
246‌
4.95%,
05/19/2050
120‌
134‌
VTR
Finance
NV
6.38%,
07/15/2028
(e),(g)
200‌
205‌
Walt
Disney
Co/The
2.65%,
01/13/2031
30‌
32‌
3.50%,
05/13/2040
260‌
284‌
5.40%,
10/01/2043
80‌
109‌
Ziggo
BV
5.50%,
01/15/2027
(e)
150‌
152‌
$
7,588‌
Metal
Fabrication
&
Hardware
-
0.04%
Advanced
Drainage
Systems
Inc
5.00%,
09/30/2027
(e)
65‌
66‌
Park-Ohio
Industries
Inc
6.63%,
04/15/2027
60‌
49‌
$
115‌
Mining
-
0.93%
First
Quantum
Minerals
Ltd
7.25%,
04/01/2023
(e)
200‌
191‌
7.50%,
04/01/2025
(e)
200‌
192‌
FMG
Resources
August
2006
Pty
Ltd
4.75%,
05/15/2022
(e)
125‌
127‌
Freeport-McMoRan
Inc
4.25%,
03/01/2030
75‌
73‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
106
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mining
(continued)
Glencore
Funding
LLC
3.00%,
10/27/2022
(e)
$
400‌
$
411‌
Hudbay
Minerals
Inc
7.25%,
01/15/2023
(e)
70‌
69‌
7.63%,
01/15/2025
(e)
130‌
124‌
IAMGOLD
Corp
7.00%,
04/15/2025
(e)
135‌
136‌
New
Gold
Inc
7.50%,
07/15/2027
(e)
125‌
129‌
Newmont
Corp
2.25%,
10/01/2030
255‌
258‌
Novelis
Corp
4.75%,
01/30/2030
(e)
165‌
158‌
Taseko
Mines
Ltd
8.75%,
06/15/2022
(e)
115‌
96‌
Teck
Resources
Ltd
3.90%,
07/15/2030
(e)
160‌
159‌
6.13%,
10/01/2035
180‌
204‌
6.25%,
07/15/2041
85‌
93‌
$
2,420‌
Miscellaneous
Manufacturers
-
0.24%
General
Electric
Co
3.45%,
05/01/2027
85‌
87‌
5.55%,
01/05/2026
180‌
207‌
5.88%,
01/14/2038
220‌
249‌
6.88%,
01/10/2039
75‌
92‌
$
635‌
Mortgage
Backed
Securities
-
3.50%
Fannie
Mae
REMIC
Trust
2005-W2
0.38%,
05/25/2035
29‌
29‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
Fannie
Mae
REMICS
2.25%,
07/25/2040
73‌
75‌
3.00%,
04/25/2022
(k)
125‌
2‌
3.00%,
04/25/2027
(k)
181‌
11‌
3.50%,
11/25/2027
(k)
125‌
9‌
3.50%,
07/25/2028
(k)
239‌
16‌
3.50%,
03/25/2031
(k)
255‌
10‌
5.82%,
10/25/2046
(k)
976‌
229‌
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
5.92%,
02/25/2043
(k)
277‌
60‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.92%,
09/25/2046
(k)
259‌
54‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.32%,
03/25/2022
(k)
9‌
—‌
(1.00)
x
1
Month
USD
LIBOR
+
6.50%
Freddie
Mac
REMICS
0.63%,
05/15/2049
1,878‌
1,881‌
1.00
x
1
Month
USD
LIBOR
+
0.45%
3.00%,
09/15/2025
(k)
15‌
—‌
3.00%,
03/15/2026
(k)
137‌
2‌
3.00%,
05/15/2027
(k)
142‌
8‌
3.00%,
10/15/2027
(k)
78‌
5‌
3.50%,
11/15/2020
(k)
26‌
—‌
4.00%,
11/15/2038
(k)
251‌
7‌
Ginnie
Mae
5.31%,
05/20/2042
(k)
992‌
208‌
(1.00)
x
1
Month
USD
LIBOR
+
5.50%
5.90%,
07/16/2042
(k)
2,188‌
498‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.90%,
07/16/2043
(k)
596‌
121‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.91%,
11/20/2041
(k)
263‌
62‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.91%,
06/20/2046
(k)
636‌
133‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
12/20/2043
(k)
312‌
78‌
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Ginnie
Mae  
(continued)
6.01%,
09/20/2041
(k)
$
2,740‌
$
484‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
11/20/2045
(k)
1,663‌
359‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
08/20/2047
(k)
1,667‌
373‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
09/20/2047
(k)
2,639‌
570‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
08/16/2045
(k)
2,517‌
569‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.06%,
06/20/2044
(k)
3,909‌
529‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.45%,
04/16/2042
(k)
1,068‌
255‌
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.46%,
02/20/2042
(k)
167‌
43‌
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.56%,
11/20/2045
(k)
2,236‌
534‌
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
6.89%,
04/20/2041
(k)
1,250‌
295‌
(1.10)
x
1
Month
USD
LIBOR
+
7.10%
HomeBanc
Mortgage
Trust
2005-5
0.52%,
01/25/2036
199‌
188‌
1.00
x
1
Month
USD
LIBOR
+
0.34%
JP
Morgan
Mortgage
Trust
2016-2
2.82%,
06/25/2046
(e),(j)
341‌
352‌
JP
Morgan
Mortgage
Trust
2016-3
3.50%,
10/25/2046
(e),(j)
252‌
256‌
Sequoia
Mortgage
Trust
2016-3
3.50%,
11/25/2046
(e),(j)
748‌
764‌
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Series
2006-AR1
Trust
0.43%,
02/25/2036
67‌
54‌
1.00
x
1
Month
USD
LIBOR
+
0.25%
$
9,123‌
Office
&
Business
Equipment
-
0.02%
Xerox
Corp
4.12%,
03/15/2023
60‌
60‌
Oil
&
Gas
-
2.87%
Ascent
Resources
Utica
Holdings
LLC
/
ARU
Finance
Corp
7.00%,
11/01/2026
(e)
100‌
64‌
10.00%,
04/01/2022
(e)
78‌
66‌
BP
Capital
Markets
America
Inc
2.94%,
04/06/2023
790‌
835‌
3.19%,
04/06/2025
550‌
599‌
3.59%,
04/14/2027
175‌
193‌
4.23%,
11/06/2028
35‌
41‌
Canadian
Natural
Resources
Ltd
4.95%,
06/01/2047
65‌
72‌
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(d),(m),(n)
90‌
—‌
Chevron
Corp
2.00%,
05/11/2027
250‌
262‌
Comstock
Resources
Inc
7.50%,
05/15/2025
(e)
50‌
45‌
9.75%,
08/15/2026
170‌
158‌
Continental
Resources
Inc/OK
3.80%,
06/01/2024
605‌
566‌
4.90%,
06/01/2044
55‌
44‌
Ecopetrol
SA
6.88%,
04/29/2030
165‌
189‌
Endeavor
Energy
Resources
LP
/
EER
Finance
Inc
6.63%,
07/15/2025
(e)
80‌
81‌
EP
Energy
LLC
/
Everest
Acquisition
Finance
Inc
0.00%,
05/15/2026
(d),(e)
245‌
49‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
107
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Exxon
Mobil
Corp
2.02%,
08/16/2024
$
135‌
$
141‌
2.44%,
08/16/2029
105‌
111‌
3.00%,
08/16/2039
75‌
79‌
3.10%,
08/16/2049
30‌
31‌
Laredo
Petroleum
Inc
9.50%,
01/15/2025
55‌
38‌
10.13%,
01/15/2028
110‌
76‌
Marathon
Oil
Corp
4.40%,
07/15/2027
175‌
172‌
6.60%,
10/01/2037
225‌
233‌
MEG
Energy
Corp
6.50%,
01/15/2025
(e)
5‌
5‌
7.00%,
03/31/2024
(e)
105‌
90‌
7.13%,
02/01/2027
(e)
65‌
54‌
Nabors
Industries
Inc
5.00%,
09/15/2020
24‌
24‌
5.75%,
02/01/2025
220‌
89‌
Oasis
Petroleum
Inc
6.25%,
05/01/2026
(e)
125‌
21‌
6.88%,
01/15/2023
100‌
17‌
Occidental
Petroleum
Corp
2.60%,
08/13/2021
405‌
396‌
2.70%,
08/15/2022
55‌
51‌
2.90%,
08/15/2024
120‌
103‌
3.20%,
08/15/2026
110‌
89‌
3.40%,
04/15/2026
35‌
28‌
4.30%,
08/15/2039
75‌
52‌
4.40%,
04/15/2046
(f)
75‌
52‌
8.00%,
07/15/2025
(g)
85‌
85‌
Parsley
Energy
LLC
/
Parsley
Finance
Corp
5.63%,
10/15/2027
(e)
70‌
69‌
Petrobras
Global
Finance
BV
5.09%,
01/15/2030
(e)
91‌
91‌
5.30%,
01/27/2025
150‌
156‌
Petroleos
Mexicanos
6.50%,
01/23/2029
215‌
188‌
6.84%,
01/23/2030
(e)
105‌
92‌
Shelf
Drilling
Holdings
Ltd
8.25%,
02/15/2025
(e)
60‌
27‌
Shell
International
Finance
BV
3.13%,
11/07/2049
55‌
58‌
Sinopec
Group
Overseas
Development
2017
Ltd
2.50%,
09/13/2022
(e),(f)
325‌
333‌
SM
Energy
Co
5.00%,
01/15/2024
(f)
65‌
35‌
6.63%,
01/15/2027
95‌
47‌
Southwestern
Energy
Co
7.75%,
10/01/2027
(f)
185‌
161‌
Sunoco
LP
/
Sunoco
Finance
Corp
4.88%,
01/15/2023
45‌
44‌
5.50%,
02/15/2026
65‌
63‌
Total
Capital
International
SA
2.83%,
01/10/2030
100‌
109‌
3.46%,
07/12/2049
15‌
16‌
Valero
Energy
Corp
2.85%,
04/15/2025
525‌
554‌
WPX
Energy
Inc
4.50%,
01/15/2030
65‌
57‌
5.25%,
09/15/2024
10‌
10‌
5.25%,
10/15/2027
25‌
23‌
5.75%,
06/01/2026
20‌
19‌
5.88%,
06/15/2028
20‌
19‌
$
7,472‌
Other
Asset
Backed
Securities
-
0.67%
Verizon
Owner
Trust
2017-3
0.46%,
04/20/2022
(e)
520‌
520‌
1.00
x
1
Month
USD
LIBOR
+
0.27%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-1
2.82%,
09/20/2022
(e)
$
351‌
$
354‌
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
850‌
869‌
$
1,743‌
Packaging
&
Containers
-
0.45%
Ardagh
Packaging
Finance
PLC
/
Ardagh
Holdings
USA
Inc
6.00%,
02/15/2025
(e)
200‌
205‌
Bemis
Co
Inc
2.63%,
06/19/2030
185‌
190‌
Cascades
Inc/Cascades
USA
Inc
5.38%,
01/15/2028
(e)
40‌
41‌
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp
VI
4.75%,
02/01/2026
70‌
71‌
Crown
Cork
&
Seal
Co
Inc
7.38%,
12/15/2026
132‌
154‌
Flex
Acquisition
Co
Inc
6.88%,
01/15/2025
(e)
60‌
58‌
7.88%,
07/15/2026
(e)
40‌
39‌
Mauser
Packaging
Solutions
Holding
Co
7.25%,
04/15/2025
(e)
160‌
145‌
Reynolds
Group
Issuer
Inc
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
(Luxembourg)
S.A.
4.72%,
07/15/2021
(e)
40‌
40‌
3
Month
USD
LIBOR
+
3.50%
5.13%,
07/15/2023
(e)
155‌
156‌
WRKCo
Inc
3.00%,
06/15/2033
70‌
73‌
$
1,172‌
Pharmaceuticals
-
2.57%
AbbVie
Inc
2.60%,
11/21/2024
(e)
170‌
181‌
4.05%,
11/21/2039
(e)
45‌
53‌
Bausch
Health
Americas
Inc
8.50%,
01/31/2027
(e)
75‌
80‌
Bausch
Health
Cos
Inc
5.00%,
01/30/2028
(e)
40‌
38‌
Bayer
US
Finance
II
LLC
3.38%,
07/15/2024
(e)
135‌
146‌
3.88%,
12/15/2023
(e)
395‌
433‌
4.25%,
12/15/2025
(e)
400‌
459‌
4.38%,
12/15/2028
(e)
225‌
263‌
Becton
Dickinson
and
Co
2.89%,
06/06/2022
185‌
192‌
3.36%,
06/06/2024
200‌
216‌
3.70%,
06/06/2027
450‌
503‌
4.67%,
06/06/2047
115‌
141‌
4.69%,
12/15/2044
141‌
174‌
Bristol-Myers
Squibb
Co
4.13%,
06/15/2039
(e)
240‌
306‌
4.25%,
10/26/2049
(e)
195‌
257‌
Cigna
Corp
3.75%,
07/15/2023
213‌
231‌
4.38%,
10/15/2028
345‌
408‌
4.80%,
08/15/2038
165‌
209‌
4.90%,
12/15/2048
35‌
46‌
CVS
Health
Corp
3.63%,
04/01/2027
155‌
174‌
4.30%,
03/25/2028
140‌
164‌
4.88%,
07/20/2035
190‌
240‌
5.05%,
03/25/2048
35‌
46‌
Eli
Lilly
and
Co
4.15%,
03/15/2059
80‌
105‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
108
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Pfizer
Inc
2.55%,
05/28/2040
$
125‌
$
129‌
2.70%,
05/28/2050
95‌
98‌
Upjohn
Inc
1.65%,
06/22/2025
(e)
75‌
76‌
2.30%,
06/22/2027
(e)
110‌
113‌
Zoetis
Inc
3.25%,
02/01/2023
240‌
253‌
3.90%,
08/20/2028
575‌
677‌
4.45%,
08/20/2048
95‌
123‌
4.70%,
02/01/2043
120‌
158‌
$
6,692‌
Pipelines
-
2.24%
Abu
Dhabi
Crude
Oil
Pipeline
LLC
3.65%,
11/02/2029
(e)
200‌
223‌
Buckeye
Partners
LP
3.95%,
12/01/2026
120‌
113‌
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp
5.63%,
05/01/2027
(e)
135‌
113‌
Energy
Transfer
Operating
LP
3.75%,
05/15/2030
505‌
502‌
4.50%,
04/15/2024
390‌
423‌
5.15%,
03/15/2045
75‌
71‌
6.25%,
04/15/2049
85‌
90‌
Enterprise
Products
Operating
LLC
3.13%,
07/31/2029
50‌
54‌
3.95%,
01/31/2060
80‌
82‌
4.20%,
01/31/2050
155‌
173‌
5.38%,
02/15/2078
(h)
250‌
224‌
3
Month
USD
LIBOR
+
2.57%
Hess
Midstream
Operations
LP
5.63%,
02/15/2026
(e)
150‌
148‌
Kinder
Morgan
Energy
Partners
LP
4.70%,
11/01/2042
150‌
162‌
MPLX
LP
4.00%,
03/15/2028
55‌
58‌
4.88%,
12/01/2024
195‌
217‌
5.50%,
02/15/2049
125‌
139‌
NuStar
Logistics
LP
6.00%,
06/01/2026
120‌
116‌
6.75%,
02/01/2021
120‌
119‌
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
175‌
196‌
5.75%,
05/15/2024
1,325‌
1,492‌
Targa
Resources
Partners
LP
/
Targa
Resources
Partners
Finance
Corp
6.50%,
07/15/2027
176‌
176‌
Western
Midstream
Operating
LP
3.10%,
02/01/2025
365‌
346‌
Williams
Cos
Inc/The
4.55%,
06/24/2024
550‌
610‌
$
5,847‌
Real
Estate
-
0.03%
Cushman
&
Wakefield
US
Borrower
LLC
6.75%,
05/15/2028
(e)
65‌
68‌
REITs
-
1.62%
Alexandria
Real
Estate
Equities
Inc
3.45%,
04/30/2025
715‌
796‌
4.70%,
07/01/2030
110‌
135‌
American
Campus
Communities
Operating
Partnership
LP
3.88%,
01/30/2031
260‌
273‌
American
Tower
Corp
1.30%,
09/15/2025
185‌
186‌
3.10%,
06/15/2050
160‌
158‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
$
510‌
$
551‌
Crown
Castle
International
Corp
3.40%,
02/15/2021
350‌
355‌
CyrusOne
LP
/
CyrusOne
Finance
Corp
2.90%,
11/15/2024
295‌
309‌
Essex
Portfolio
LP
3.00%,
01/15/2030
240‌
262‌
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
6.00%,
04/15/2025
(e)
50‌
52‌
Healthcare
Trust
of
America
Holdings
LP
3.10%,
02/15/2030
235‌
237‌
Healthpeak
Properties
Inc
2.88%,
01/15/2031
165‌
169‌
Iron
Mountain
Inc
5.00%,
07/15/2028
(e)
45‌
44‌
Park
Intermediate
Holdings
LLC
/
PK
Domestic
Property
LLC
/
PK
Finance
Co-Issuer
7.50%,
06/01/2025
(e)
50‌
51‌
Prologis
LP
3.00%,
04/15/2050
100‌
106‌
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
185‌
178‌
VICI
Properties
LP
/
VICI
Note
Co
Inc
3.50%,
02/15/2025
(e)
55‌
52‌
Welltower
Inc
2.75%,
01/15/2031
320‌
320‌
$
4,234‌
Retail
-
0.17%
Home
Depot
Inc/The
3.30%,
04/15/2040
70‌
79‌
5.88%,
12/16/2036
60‌
90‌
IRB
Holding
Corp
6.75%,
02/15/2026
(e)
130‌
124‌
7.00%,
06/15/2025
(e)
15‌
15‌
L
Brands
Inc
6.88%,
07/01/2025
(e)
30‌
31‌
9.38%,
07/01/2025
(e)
25‌
25‌
Nordstrom
Inc
8.75%,
05/15/2025
(e)
15‌
16‌
Walmart
Inc
4.05%,
06/29/2048
10‌
13‌
Yum!
Brands
Inc
7.75%,
04/01/2025
(e)
50‌
54‌
$
447‌
Semiconductors
-
1.36%
Analog
Devices
Inc
2.95%,
04/01/2025
300‌
325‌
Applied
Materials
Inc
1.75%,
06/01/2030
440‌
450‌
Broadcom
Inc
3.15%,
11/15/2025
(e)
270‌
287‌
4.70%,
04/15/2025
(e)
525‌
591‌
Lam
Research
Corp
4.00%,
03/15/2029
120‌
143‌
4.88%,
03/15/2049
25‌
35‌
Microchip
Technology
Inc
4.25%,
09/01/2025
(e)
25‌
25‌
Micron
Technology
Inc
2.50%,
04/24/2023
270‌
281‌
NVIDIA
Corp
3.50%,
04/01/2040
95‌
111‌
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/15/2022
(e)
370‌
394‌
4.63%,
06/01/2023
(e)
400‌
439‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
109
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Semiconductors
(continued)
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70%,
05/01/2025
(e)
$
60‌
$
63‌
3.15%,
05/01/2027
(e)
60‌
64‌
Xilinx
Inc
2.38%,
06/01/2030
85‌
87‌
2.95%,
06/01/2024
225‌
241‌
$
3,536‌
Software
-
0.90%
Adobe
Inc
2.15%,
02/01/2027
120‌
129‌
2.30%,
02/01/2030
75‌
81‌
Epicor
Software
Corp
7.56%,
06/30/2023
(e)
10‌
10‌
3
Month
USD
LIBOR
+
7.25%
Fiserv
Inc
3.80%,
10/01/2023
200‌
219‌
4.40%,
07/01/2049
190‌
231‌
Intuit
Inc
1.35%,
07/15/2027
215‌
216‌
Microsoft
Corp
2.53%,
06/01/2050
30‌
31‌
2.68%,
06/01/2060
99‌
103‌
3.70%,
08/08/2046
120‌
149‌
Open
Text
Corp
3.88%,
02/15/2028
(e)
140‌
135‌
5.88%,
06/01/2026
(e)
80‌
83‌
Oracle
Corp
2.50%,
04/01/2025
255‌
273‌
2.80%,
04/01/2027
240‌
262‌
2.95%,
05/15/2025
100‌
109‌
4.00%,
11/15/2047
35‌
41‌
salesforce.com
Inc
3.70%,
04/11/2028
230‌
269‌
$
2,341‌
Sovereign
-
1.71%
Abu
Dhabi
Government
International
Bond
2.13%,
09/30/2024
(e)
200‌
206‌
CoBank
ACB
6.25%,
12/31/2049
(h),(i)
115‌
114‌
3
Month
USD
LIBOR
+
4.66%
Colombia
Government
International
Bond
3.00%,
01/30/2030
325‌
322‌
5.00%,
06/15/2045
200‌
226‌
Egypt
Government
International
Bond
5.58%,
02/21/2023
(e)
200‌
204‌
Honduras
Government
International
Bond
7.50%,
03/15/2024
200‌
216‌
Hungary
Government
International
Bond
5.38%,
02/21/2023
44‌
48‌
Indonesia
Government
International
Bond
5.38%,
10/17/2023
(e)
300‌
333‌
Israel
Government
International
Bond
2.75%,
07/03/2030
275‌
303‌
Mexico
Government
International
Bond
5.00%,
04/27/2051
200‌
216‌
Panama
Government
International
Bond
3.88%,
03/17/2028
200‌
225‌
Qatar
Government
International
Bond
3.25%,
06/02/2026
400‌
434‌
3.88%,
04/23/2023
(e)
200‌
214‌
4.40%,
04/16/2050
(e)
200‌
248‌
Russian
Foreign
Bond
-
Eurobond
5.10%,
03/28/2035
(e)
200‌
247‌
Saudi
Government
International
Bond
4.00%,
04/17/2025
(e)
600‌
665‌
Ukraine
Government
International
Bond
9.75%,
11/01/2028
(e)
200‌
228‌
$
4,449‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
-
0.62%
Navient
Student
Loan
Trust
2019-1
0.51%,
12/27/2067
(e)
$
126‌
$
126‌
1.00
x
1
Month
USD
LIBOR
+
0.33%
SMB
Private
Education
Loan
Trust
2020-A
0.48%,
03/15/2027
(e)
1,502‌
1,492‌
1.00
x
1
Month
USD
LIBOR
+
0.30%
$
1,618‌
Telecommunications
-
2.44%
AT&T
Inc
2.30%,
06/01/2027
230‌
238‌
2.75%,
06/01/2031
135‌
141‌
3.50%,
06/01/2041
215‌
225‌
3.88%,
01/15/2026
175‌
197‌
4.05%,
12/15/2023
425‌
472‌
4.30%,
02/15/2030
110‌
129‌
5.15%,
03/15/2042
135‌
169‌
5.35%,
09/01/2040
330‌
415‌
5.38%,
10/15/2041
130‌
163‌
5.45%,
03/01/2047
45‌
59‌
CenturyLink
Inc
4.00%,
02/15/2027
(e)
35‌
34‌
CommScope
Inc
8.25%,
03/01/2027
(e)
195‌
200‌
Embarq
Corp
8.00%,
06/01/2036
105‌
118‌
Level
3
Financing
Inc
4.25%,
07/01/2028
(e)
105‌
105‌
5.13%,
05/01/2023
30‌
30‌
Ooredoo
International
Finance
Ltd
3.88%,
01/31/2028
250‌
275‌
Rogers
Communications
Inc
3.70%,
11/15/2049
105‌
116‌
4.35%,
05/01/2049
50‌
61‌
Sprint
Communications
Inc
6.00%,
11/15/2022
75‌
79‌
Sprint
Corp
7.13%,
06/15/2024
120‌
135‌
7.63%,
03/01/2026
35‌
41‌
7.88%,
09/15/2023
180‌
203‌
Telecom
Italia
Capital
SA
6.38%,
11/15/2033
65‌
73‌
T-Mobile
USA
Inc
2.05%,
02/15/2028
(e)
220‌
220‌
3.50%,
04/15/2025
(e)
315‌
343‌
3.88%,
04/15/2030
(e)
255‌
284‌
4.00%,
04/15/2022
125‌
128‌
5.13%,
04/15/2025
200‌
205‌
Verizon
Communications
Inc
3.88%,
02/08/2029
270‌
319‌
4.50%,
08/10/2033
355‌
442‌
5.25%,
03/16/2037
260‌
348‌
Vodafone
Group
PLC
4.88%,
06/19/2049
215‌
271‌
Zayo
Group
Holdings
Inc
4.00%,
03/01/2027
(e)
80‌
76‌
6.13%,
03/01/2028
(e)
50‌
49‌
$
6,363‌
Transportation
-
0.21%
Eletson
Holdings
Inc
/
Eletson
Finance
US
LLC
/
Agathonissos
Finance
LLC
0.00%,
01/15/2022
(d),(m),(n)
121‌
23‌
Navios
Maritime
Acquisition
Corp
/
Navios
Acquisition
Finance
US
Inc
8.13%,
11/15/2021
(e)
200‌
113‌
Navios
Maritime
Holdings
Inc
/
Navios
Maritime
Finance
II
US
Inc
7.38%,
01/15/2022
(e)
55‌
23‌
11.25%,
08/15/2022
(e)
45‌
30‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
110
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Transportation
(continued)
Navios
South
American
Logistics
Inc
/
Navios
Logistics
Finance
US
Inc
7.25%,
05/01/2022
(e)
$
140‌
$
140‌
10.75%,
07/01/2025
(e),(g)
50‌
51‌
Union
Pacific
Corp
4.38%,
11/15/2065
60‌
75‌
Watco
Cos
LLC
/
Watco
Finance
Corp
6.50%,
06/15/2027
(e)
85‌
87‌
$
542‌
Trucking
&
Leasing
-
0.08%
DAE
Funding
LLC
4.50%,
08/01/2022
(e)
95‌
90‌
5.25%,
11/15/2021
(e)
25‌
25‌
5.75%,
11/15/2023
(e)
100‌
95‌
$
210‌
TOTAL
BONDS
$
159,600‌
SENIOR
FLOATING
RATE
INTERESTS
-
0.80%
Principal
Amount
(000's)
Value
(000's)
Automobile
Manufacturers
-
0.05%
Navistar
Inc
3.70%,
11/06/2024
(o)
$
124‌
$
117‌
3
Month
USD
LIBOR
+
3.00%
Commercial
Services
-
0.01%
Refinitiv
US
Holdings
Inc
3.43%,
10/01/2025
(o)
34‌
34‌
3
Month
USD
LIBOR
+
3.00%
Computers
-
0.07%
McAfee
LLC
9.50%,
09/29/2025
(o)
195‌
194‌
3
Month
USD
LIBOR
+
3.25%
Diversified
Financial
Services
-
0.07%
Russell
Investments
US
Institutional
Holdco
Inc
3.82%,
06/01/2023
(o)
188‌
182‌
1
Month
USD
LIBOR
+
2.75%
Electrical
Components
&
Equipment
-
0.01%
Energizer
Holdings
Inc
2.44%,
12/17/2025
(o)
35‌
33‌
1
Month
USD
LIBOR
+
4.50%
Entertainment
-
0.04%
Eldorado
Resorts
Inc
3.25%,
04/17/2024
(o)
56‌
56‌
3
Month
USD
LIBOR
+
3.00%
Lions
Gate
Capital
Holdings
LLC
2.43%,
03/24/2025
(o)
49‌
46‌
3
Month
USD
LIBOR
+
2.00%
$
102‌
Food
-
0.02%
Bellring
Brands
LLC
6.00%,
10/21/2024
(o)
54‌
53‌
1
Month
USD
LIBOR
+
5.00%
Forest
Products
&
Paper
-
0.03%
Pixelle
Specialty
Solutions
LLC
7.50%,
10/31/2024
(o)
79‌
74‌
1
Month
USD
LIBOR
+
6.50%
Insurance
-
0.11%
AssuredPartners
Inc
5.50%,
02/12/2027
(o)
100‌
98‌
1
Month
USD
LIBOR
+
4.50%
Asurion
LLC
3.18%,
11/03/2023
(o)
89‌
86‌
1
Month
USD
LIBOR
+
7.25%
6.68%,
08/04/2025
(o)
100‌
100‌
3
Month
USD
LIBOR
+
3.25%
$
284‌
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Lodging
-
0.05%
Golden
Nugget
LLC
3.25%,
10/04/2023
(o)
$
76‌
$
61‌
1
Month
USD
LIBOR
+
2.50%
Spectacle
Gary
Holdings
LLC
11.00%,
12/23/2025
(o)
70‌
65‌
1
Month
USD
LIBOR
+
9.00%
$
126‌
Media
-
0.03%
CSC
Holdings
LLC
2.68%,
04/15/2027
(o)
50‌
47‌
1
Month
USD
LIBOR
+
2.50%
Diamond
Sports
Group
LLC
3.43%,
08/24/2026
(o)
45‌
36‌
1
Month
USD
LIBOR
+
3.50%
$
83‌
Pharmaceuticals
-
0.18%
Bausch
Health
Americas
Inc
3.15%,
05/19/2025
(o)
273‌
265‌
3
Month
USD
LIBOR
+
7.50%
Endo
International
PLC
5.00%,
04/29/2024
(o)
212‌
200‌
3
Month
USD
LIBOR
+
4.00%
$
465‌
Pipelines
-
0.03%
Buckeye
Partners
LP
2.92%,
11/01/2026
(o)
85‌
81‌
1
Month
USD
LIBOR
+
2.75%
Retail
-
0.03%
IRB
Holding
Corp
2.76%,
02/05/2025
(o)
74‌
68‌
1
Month
USD
LIBOR
+
2.75%
Telecommunications
-
0.07%
Maxar
Technologies
Ltd
2.93%,
10/05/2024
(o)
104‌
97‌
3
Month
USD
LIBOR
+
4.25%
Zayo
Group
Holdings
Inc
3.18%,
02/19/2027
(o)
90‌
85‌
1
Month
USD
LIBOR
+
3.00%
$
182‌
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
2,078‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
41.11%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
3.53%
3.00%,
10/01/2042
$
46‌
$
50‌
3.00%,
11/01/2042
256‌
277‌
3.00%,
11/01/2042
47‌
50‌
3.00%,
03/01/2043
1,170‌
1,276‌
3.00%,
12/01/2046
112‌
119‌
3.00%,
01/01/2047
2,128‌
2,315‌
3.50%,
10/01/2041
41‌
45‌
3.50%,
04/01/2042
51‌
55‌
3.50%,
04/01/2042
103‌
112‌
3.50%,
04/01/2045
47‌
51‌
3.50%,
10/01/2045
792‌
866‌
3.50%,
03/01/2048
117‌
128‌
3.62%,
02/01/2037
8‌
8‌
1.00
x
12
Month
USD
LIBOR
+
1.63%
4.00%,
02/01/2045
23‌
24‌
4.00%,
02/01/2046
58‌
63‌
4.00%,
02/01/2046
359‌
386‌
4.00%,
06/01/2046
57‌
62‌
4.00%,
04/01/2047
304‌
328‌
4.00%,
11/01/2047
521‌
557‌
4.50%,
07/01/2024
10‌
10‌
4.50%,
10/01/2041
32‌
35‌
4.50%,
12/01/2043
801‌
892‌
4.50%,
03/01/2046
264‌
300‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
111
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
5.00%,
06/01/2031
$
79‌
$
89‌
5.00%,
10/01/2035
29‌
33‌
5.00%,
06/01/2041
755‌
854‌
6.00%,
06/01/2032
19‌
22‌
6.00%,
10/01/2032
10‌
12‌
6.00%,
01/01/2038
48‌
57‌
6.50%,
03/01/2029
2‌
3‌
6.50%,
05/01/2029
4‌
4‌
6.50%,
04/01/2031
2‌
2‌
6.50%,
02/01/2032
4‌
4‌
6.50%,
05/01/2032
3‌
4‌
6.50%,
04/01/2035
7‌
8‌
7.00%,
12/01/2029
10‌
11‌
7.00%,
06/01/2030
3‌
4‌
7.00%,
12/01/2030
1‌
1‌
7.00%,
01/01/2031
2‌
2‌
7.00%,
12/01/2031
29‌
30‌
7.50%,
04/01/2030
1‌
1‌
7.50%,
03/01/2031
7‌
8‌
8.00%,
09/01/2030
31‌
32‌
$
9,190‌
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
17.51%
2.00%,
07/01/2035
(p)
650‌
672‌
2.00%,
07/01/2050
(p)
500‌
512‌
2.50%,
07/01/2035
(p)
2,000‌
2,094‌
2.50%,
07/01/2050
(p)
3,950‌
4,118‌
3.00%,
03/01/2034
244‌
260‌
3.00%,
07/01/2035
(p)
4,000‌
4,204‌
3.00%,
03/01/2042
82‌
88‌
3.00%,
03/01/2042
76‌
81‌
3.00%,
05/01/2042
43‌
46‌
3.00%,
06/01/2042
78‌
83‌
3.00%,
06/01/2042
38‌
41‌
3.00%,
05/01/2043
158‌
171‌
3.00%,
07/01/2050
(p)
8,450‌
8,900‌
3.50%,
04/01/2030
289‌
306‌
3.50%,
05/01/2034
1,261‌
1,361‌
3.50%,
08/01/2034
302‌
320‌
3.50%,
12/01/2040
59‌
63‌
3.50%,
01/01/2041
35‌
38‌
3.50%,
12/01/2041
18‌
19‌
3.50%,
03/01/2042
32‌
35‌
3.50%,
04/01/2042
65‌
70‌
3.50%,
11/01/2042
875‌
971‌
3.50%,
02/01/2043
42‌
46‌
3.50%,
07/01/2043
736‌
808‌
3.50%,
01/01/2044
229‌
251‌
3.50%,
11/01/2044
1,479‌
1,615‌
3.50%,
03/01/2045
51‌
56‌
3.50%,
06/01/2045
97‌
106‌
3.50%,
11/01/2045
63‌
68‌
3.50%,
05/01/2046
52‌
55‌
3.50%,
08/01/2047
1,493‌
1,657‌
3.50%,
10/01/2047
1,502‌
1,656‌
3.50%,
11/01/2047
662‌
724‌
3.50%,
01/01/2048
480‌
527‌
3.50%,
03/01/2048
980‌
1,070‌
3.50%,
04/01/2048
1,302‌
1,422‌
4.00%,
08/01/2020
1‌
1‌
4.00%,
03/01/2034
352‌
387‌
4.00%,
09/01/2040
77‌
86‌
4.00%,
05/01/2041
167‌
183‌
4.00%,
10/01/2041
41‌
45‌
4.00%,
10/01/2041
27‌
30‌
4.00%,
11/01/2041
38‌
42‌
4.00%,
04/01/2042
25‌
28‌
4.00%,
11/01/2043
34‌
37‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.00%,
11/01/2043
$
95‌
$
106‌
4.00%,
02/01/2044
112‌
123‌
4.00%,
06/01/2044
239‌
263‌
4.00%,
09/01/2044
30‌
32‌
4.00%,
09/01/2045
102‌
113‌
4.00%,
12/01/2045
590‌
639‌
4.00%,
08/01/2046
79‌
86‌
4.00%,
01/01/2047
54‌
58‌
4.00%,
04/01/2047
315‌
344‌
4.00%,
05/01/2047
701‌
750‌
4.00%,
11/01/2047
1,707‌
1,865‌
4.00%,
05/01/2048
159‌
170‌
4.00%,
10/01/2048
1,284‌
1,371‌
4.00%,
10/01/2048
394‌
436‌
4.00%,
01/01/2049
267‌
285‌
4.50%,
07/01/2025
30‌
32‌
4.50%,
08/01/2040
46‌
51‌
4.50%,
11/01/2040
683‌
750‌
4.50%,
12/01/2040
29‌
32‌
4.50%,
08/01/2041
32‌
36‌
4.50%,
09/01/2041
216‌
241‌
4.50%,
05/01/2044
35‌
39‌
4.50%,
12/01/2044
87‌
95‌
4.50%,
06/01/2046
39‌
42‌
4.50%,
05/01/2047
26‌
29‌
4.50%,
05/01/2047
92‌
100‌
4.50%,
05/01/2049
269‌
290‌
5.00%,
10/01/2041
153‌
175‌
5.00%,
06/01/2048
364‌
412‌
5.50%,
12/01/2022
7‌
8‌
5.50%,
07/01/2033
200‌
229‌
5.50%,
04/01/2035
22‌
25‌
5.50%,
08/01/2036
433‌
498‌
5.50%,
02/01/2037
3‌
4‌
5.50%,
05/01/2040
40‌
45‌
6.00%,
05/01/2031
2‌
2‌
6.00%,
07/01/2035
124‌
144‌
6.00%,
02/01/2037
78‌
87‌
6.00%,
02/01/2038
46‌
54‌
6.50%,
03/01/2032
3‌
3‌
6.50%,
07/01/2037
14‌
16‌
6.50%,
07/01/2037
29‌
35‌
6.50%,
02/01/2038
33‌
39‌
6.50%,
03/01/2038
7‌
8‌
6.50%,
09/01/2038
106‌
123‌
$
45,638‌
Government
National
Mortgage
Association
(GNMA)
-
7.19%
2.50%,
07/01/2050
1,500‌
1,579‌
3.00%,
02/15/2043
311‌
332‌
3.00%,
07/20/2044
436‌
466‌
3.00%,
01/20/2046
338‌
360‌
3.00%,
07/20/2046
542‌
577‌
3.00%,
12/20/2046
1,483‌
1,576‌
3.00%,
07/01/2050
4,200‌
4,450‌
3.50%,
04/20/2046
183‌
199‌
3.50%,
10/20/2046
278‌
297‌
3.50%,
07/20/2047
1,119‌
1,205‌
3.50%,
07/01/2050
3,000‌
3,166‌
4.00%,
02/15/2042
115‌
127‌
4.00%,
06/20/2046
72‌
77‌
4.00%,
01/20/2048
1,891‌
2,074‌
4.50%,
09/15/2039
522‌
597‌
4.50%,
11/15/2040
95‌
107‌
4.50%,
06/20/2048
26‌
28‌
5.00%,
02/15/2034
188‌
215‌
5.00%,
10/15/2034
68‌
78‌
5.00%,
10/20/2039
35‌
40‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
112
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
5.00%,
07/20/2040
$
16‌
$
17‌
5.00%,
02/15/2042
79‌
91‌
5.50%,
12/20/2033
93‌
107‌
5.50%,
05/20/2035
10‌
12‌
5.50%,
12/20/2048
465‌
506‌
6.00%,
01/20/2029
17‌
19‌
6.00%,
07/20/2029
3‌
3‌
6.00%,
12/15/2033
21‌
24‌
6.00%,
12/20/2036
49‌
57‌
6.50%,
03/20/2028
3‌
3‌
6.50%,
05/20/2029
3‌
3‌
6.50%,
12/15/2032
282‌
324‌
7.00%,
03/15/2031
6‌
6‌
7.50%,
05/15/2029
13‌
13‌
8.00%,
12/15/2030
6‌
7‌
$
18,742‌
U.S.
Treasury
-
9.80%
1.50%,
08/15/2026
1,420‌
1,513‌
1.63%,
08/15/2029
2,500‌
2,728‌
3.00%,
05/15/2045
3,140‌
4,216‌
3.00%,
11/15/2045
(q)
2,000‌
2,696‌
3.13%,
05/15/2048
5,950‌
8,339‌
3.75%,
11/15/2043
1,650‌
2,455‌
4.75%,
02/15/2037
2,260‌
3,604‌
$
25,551‌
U.S.
Treasury
Bill
-
3.08%
0.09%,
07/02/2020
(r)
800‌
800‌
0.11%,
07/30/2020
(r)
810‌
810‌
0.12%,
09/17/2020
(r)
6,420‌
6,418‌
$
8,028‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
107,149‌
Total
Investments
$
288,474‌
Other
Assets
and
Liabilities
-  (10.68)%
(27,825‌)
TOTAL
NET
ASSETS
-
100.00%
$
260,649‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,123
or
0.43%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$44,564
or
17.10%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(g)
Security
purchased
on
a
when-issued
basis.
(h)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(i)
Perpetual
security.
Perpetual
securities
pay
an
indefinite
stream
of
interest,
but
they
may
be
called
by
the
issuer
at
an
earlier
date.
Date
shown,
if
any,
reflects
the
next
call
date
or
final
legal
maturity
date.
Rate
shown
is
as
of
period
end.
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Security
is
an
Interest
Only
Strip.
(l)
Payment
in
kind;
the
issuer
has
the
option
of
paying
additional
securities
in
lieu
of
cash.
(m)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(n)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$23
or
0.01%
of
net
assets.
(o)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
(p)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.  See
Notes
to
Financial
Statements
for
additional
information.
(q)
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
$852
or
0.33%
of
net
assets.
(r)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary  (unaudited)
Sector
Percent
Mortgage
Securities
33.69‌%
Financial
14.92‌%
Government
14.59‌%
Consumer,
Non-cyclical
6.95‌%
Communications
5.87‌%
Asset
Backed
Securities
5.69‌%
Energy
5.14‌%
Investment
Companies
4.36‌%
Utilities
3.84‌%
Industrial
3.59‌%
Consumer,
Cyclical
3.33‌%
Technology
3.21‌%
Money
Market
Funds
3.18‌%
Basic
Materials
2.32‌%
Other
Assets
and
Liabilities
(10.68‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
11,648‌
$
110,575‌
$
115,054‌
$
7,169‌
$
11,648‌
$
110,575‌
$
115,054‌
$
7,169‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
36‌
$
—‌
$
—‌
$
—‌
$
36‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
113
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
September
2020
Long
32‌
$
4,454‌
$
11‌
US
10
Year
Ultra
Note;
September
2020
Short
5‌
787‌
(3‌)
US
2
Year
Note;
September
2020
Long
9‌
1,987‌
—‌
US
5
Year
Note;
September
2020
Short
26‌
3,269‌
(7‌)
US
Long
Bond;
September
2020
Long
13‌
2,321‌
7‌
Total
$
8‌
Amounts
in
thousands
except
contracts.
Exchange
Cleared
Credit
Default
Swaps
Buy
Protection
Reference
Entity
Implied
Credit
Spread
as
of
June
30,
2020
(a)
(Pay)/
Receive
Fixed
Rate
Payment
Frequency
Maturity
Date
Notional
Amount
Upfront
Payments/
(Receipts)
Unrealized
Appreciation/
(Depreciation)
Fair
Value
CDX.EM.32
N/A
(1.00)%
Quarterly
12/20/2024
$
6,045‌
$
366‌
$
(149‌)
$
217‌
Total
$
366‌
$
(149‌)
$
217‌
Amounts
in
thousands.
(a)
Implied
credit
spreads,
represented
in
absolute
terms,
used
in
determining
the
market
value
of
credit
default
swap
agreements
on
corporate
issues
or
sovereign
issues
as
of
period
end
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
buying/selling
protection
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
Wider
credit
spreads
represent
a
deterioration
of
the
referenced
entity's
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
Schedule
of
Investments
Diversified
Balanced
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
114
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
14.91%
International
Equity
Index
Fund
(a)
7,065,562‌
$
66,558‌
MidCap
S&P
400
Index
Fund
(a)
2,193,251‌
38,623‌
SmallCap
S&P
600
Index
Fund
(a)
1,913,883‌
38,967‌
$
144,148‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
85.12%
Bond
Market
Index
Account
(a)
42,803,038‌
486,670‌
LargeCap
S&P
500
Index
Account
(a)
17,208,222‌
336,249‌
$
822,919‌
TOTAL
INVESTMENT
COMPANIES
$
967,067‌
BONDS
-
0.00%
Principal
Amount
(000's)
Value
(000's)
Oil
&
Gas
-
0.00%
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(b),(c),(d)
$
5‌
$
—‌
TOTAL
BONDS
$
—‌
Total
Investments
$
967,067‌
Other
Assets
and
Liabilities
-  (0.03)%
(244‌)
TOTAL
NET
ASSETS
-
100.00%
$
966,823‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(d)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
50.34‌%
Domestic
Equity
Funds
42.81‌%
International
Equity
Funds
6.88‌%
Energy
0.00‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
504,518‌
$
49,229‌
$
95,366‌
$
486,670‌
International
Equity
Index
Fund
73,545‌
10,492‌
10,610‌
66,558‌
LargeCap
S&P
500
Index
Account
366,108‌
36,813‌
60,840‌
336,249‌
MidCap
S&P
400
Index
Fund
42,334‌
7,678‌
7,735‌
38,623‌
SmallCap
S&P
600
Index
Fund
42,712‌
9,243‌
7,268‌
38,967‌
$
1,029,217‌
$
113,455‌
$
181,819‌
$
967,067‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
3,996‌
$
—‌
$
24,293‌
International
Equity
Index
Fund
—‌
(91‌)
—‌
(6,778‌)
LargeCap
S&P
500
Index
Account
—‌
15,981‌
—‌
(21,813‌)
MidCap
S&P
400
Index
Fund
—‌
165‌
—‌
(3,819‌)
SmallCap
S&P
600
Index
Fund
—‌
(109‌)
—‌
(5,611‌)
$
—‌
$
19,942‌
$
—‌
$
(13,728‌)
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Managed
Volatility
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
115
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
14.90%
International
Equity
Index
Fund
(a)
1,242,737‌
$
11,707‌
MidCap
S&P
400
Index
Fund
(a)
385,743‌
6,793‌
SmallCap
S&P
600
Index
Fund
(a)
336,598‌
6,853‌
$
25,353‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
85.13%
Bond
Market
Index
Account
(a)
7,528,472‌
85,599‌
LargeCap
S&P
500
Managed
Volatility
Index
Account
(a)
4,049,197‌
59,199‌
$
144,798‌
TOTAL
INVESTMENT
COMPANIES
$
170,151‌
Total
Investments
$
170,151‌
Other
Assets
and
Liabilities
-  (0.03)%
(52‌)
TOTAL
NET
ASSETS
-
100.00%
$
170,099‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
50.33‌%
Domestic
Equity
Funds
42.82‌%
International
Equity
Funds
6.88‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
87,825‌
$
8,247‌
$
15,421‌
$
85,599‌
International
Equity
Index
Fund
12,794‌
2,055‌
1,976‌
11,707‌
LargeCap
S&P
500
Managed
Volatility
Index
Account
60,876‌
7,302‌
8,086‌
59,199‌
MidCap
S&P
400
Index
Fund
7,363‌
1,527‌
1,484‌
6,793‌
SmallCap
S&P
600
Index
Fund
7,428‌
1,748‌
1,349‌
6,853‌
$
176,286‌
$
20,879‌
$
28,316‌
$
170,151‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
440‌
$
—‌
$
4,508‌
International
Equity
Index
Fund
—‌
(1‌)
—‌
(1,165‌)
LargeCap
S&P
500
Managed
Volatility
Index
Account
—‌
667‌
—‌
(1,560‌)
MidCap
S&P
400
Index
Fund
—‌
(24‌)
—‌
(589‌)
SmallCap
S&P
600
Index
Fund
—‌
(22‌)
—‌
(952‌)
$
—‌
$
1,060‌
$
—‌
$
242‌
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Volatility
Control
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
116
INVESTMENT
COMPANIES
-
99.93%
Shares
Held
Value
(000's)
Money
Market
Funds
-
19.98%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
31,505,779‌
$
31,506‌
Principal
Funds,
Inc.
Class
R-6
-
14.87%
International
Equity
Index
Fund
(a)
1,149,078‌
10,824‌
MidCap
S&P
400
Index
Fund
(a)
356,643‌
6,280‌
SmallCap
S&P
600
Index
Fund
(a)
311,185‌
6,336‌
$
23,440‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
65.08%
Bond
Market
Index
Account
(a)
6,961,824‌
79,156‌
LargeCap
S&P
500
Index
Account
(a)
1,199,427‌
23,437‌
$
102,593‌
TOTAL
INVESTMENT
COMPANIES
$
157,539‌
Total
Investments
$
157,539‌
Other
Assets
and
Liabilities
-  0.07%
110‌
TOTAL
NET
ASSETS
-
100.00%
$
157,649‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
50.21‌%
Domestic
Equity
Funds
22.87‌%
Money
Market
Funds
19.98‌%
International
Equity
Funds
6.87‌%
Other
Assets
and
Liabilities
0.07‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
72,567‌
$
10,534‌
$
8,345‌
$
79,156‌
International
Equity
Index
Fund
10,190‌
3,103‌
1,533‌
10,824‌
LargeCap
S&P
500
Index
Account
21,826‌
5,573‌
3,827‌
23,437‌
MidCap
S&P
400
Index
Fund
5,883‌
2,085‌
1,218‌
6,280‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
242‌
57,954‌
26,690‌
31,506‌
SmallCap
S&P
600
Index
Fund
5,872‌
2,358‌
1,115‌
6,336‌
$
116,580‌
$
81,607‌
$
42,728‌
$
157,539‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
1‌
$
—‌
$
4,399‌
International
Equity
Index
Fund
—‌
(11‌)
—‌
(925‌)
LargeCap
S&P
500
Index
Account
—‌
(3‌)
—‌
(132‌)
MidCap
S&P
400
Index
Fund
—‌
(18‌)
—‌
(452‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
35‌
—‌
—‌
—‌
SmallCap
S&P
600
Index
Fund
—‌
35‌
—‌
(814‌)
$
35‌
$
4‌
$
—‌
$
2,076‌
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
September
2020
Short
18‌
$
2,781‌
$
29‌
Total
$
29‌
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
Diversified
Growth
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
117
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
19.91%
International
Equity
Index
Fund
(a)
37,123,974‌
$
349,708‌
MidCap
S&P
400
Index
Fund
(a)
10,084,043‌
177,580‌
SmallCap
S&P
600
Index
Fund
(a)
8,799,907‌
179,166‌
$
706,454‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
80.12%
Bond
Market
Index
Account
(a)
110,170,130‌
1,252,634‌
LargeCap
S&P
500
Index
Account
(a)
81,372,512‌
1,590,019‌
$
2,842,653‌
TOTAL
INVESTMENT
COMPANIES
$
3,549,107‌
Total
Investments
$
3,549,107‌
Other
Assets
and
Liabilities
-  (0.03)%
(902‌)
TOTAL
NET
ASSETS
-
100.00%
$
3,548,205‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
54.86‌%
Fixed
Income
Funds
35.31‌%
International
Equity
Funds
9.86‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
1,287,209‌
$
159,435‌
$
265,754‌
$
1,252,634‌
International
Equity
Index
Fund
382,917‌
43,059‌
38,991‌
349,708‌
LargeCap
S&P
500
Index
Account
1,715,555‌
114,793‌
204,048‌
1,590,019‌
MidCap
S&P
400
Index
Fund
192,861‌
28,729‌
26,154‌
177,580‌
SmallCap
S&P
600
Index
Fund
194,578‌
36,648‌
24,824‌
179,166‌
$
3,773,120‌
$
382,664‌
$
559,771‌
$
3,549,107‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
9,863‌
$
—‌
$
61,881‌
International
Equity
Index
Fund
—‌
(201‌)
—‌
(37,076‌)
LargeCap
S&P
500
Index
Account
—‌
40,213‌
—‌
(76,494‌)
MidCap
S&P
400
Index
Fund
—‌
(110‌)
—‌
(17,746‌)
SmallCap
S&P
600
Index
Fund
—‌
(309‌)
—‌
(26,927‌)
$
—‌
$
49,456‌
$
—‌
$
(96,362‌)
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Managed
Volatility
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
118
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
19.90%
International
Equity
Index
Fund
(a)
3,576,329‌
$
33,689‌
MidCap
S&P
400
Index
Fund
(a)
971,525‌
17,109‌
SmallCap
S&P
600
Index
Fund
(a)
847,851‌
17,262‌
$
68,060‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
80.13%
Bond
Market
Index
Account
(a)
10,614,703‌
120,689‌
LargeCap
S&P
500
Managed
Volatility
Index
Account
(a)
10,487,982‌
153,334‌
$
274,023‌
TOTAL
INVESTMENT
COMPANIES
$
342,083‌
Total
Investments
$
342,083‌
Other
Assets
and
Liabilities
-  (0.03)%
(94‌)
TOTAL
NET
ASSETS
-
100.00%
$
341,989‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
54.89‌%
Fixed
Income
Funds
35.29‌%
International
Equity
Funds
9.85‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
123,218‌
$
13,651‌
$
23,041‌
$
120,689‌
International
Equity
Index
Fund
36,631‌
4,660‌
4,172‌
33,689‌
LargeCap
S&P
500
Managed
Volatility
Index
Account
156,880‌
13,123‌
13,708‌
153,334‌
MidCap
S&P
400
Index
Fund
18,446‌
3,033‌
2,745‌
17,109‌
SmallCap
S&P
600
Index
Fund
18,608‌
3,753‌
2,589‌
17,262‌
$
353,783‌
$
38,220‌
$
46,255‌
$
342,083‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
771‌
$
—‌
$
6,090‌
International
Equity
Index
Fund
—‌
(9‌)
—‌
(3,421‌)
LargeCap
S&P
500
Managed
Volatility
Index
Account
—‌
1,351‌
—‌
(4,312‌)
MidCap
S&P
400
Index
Fund
—‌
(48‌)
—‌
(1,577‌)
SmallCap
S&P
600
Index
Fund
—‌
(63‌)
—‌
(2,447‌)
$
—‌
$
2,002‌
$
—‌
$
(5,667‌)
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Volatility
Control
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
119
INVESTMENT
COMPANIES
-
99.52%
Shares
Held
Value
(000's)
Money
Market
Funds
-
19.68%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
162,340,288‌
$
162,340‌
Principal
Funds,
Inc.
Class
R-6
-
19.84%
International
Equity
Index
Fund
(a)
8,599,737‌
81,010‌
MidCap
S&P
400
Index
Fund
(a)
2,335,675‌
41,131‌
SmallCap
S&P
600
Index
Fund
(a)
2,038,088‌
41,496‌
$
163,637‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
60.00%
Bond
Market
Index
Account
(a)
25,527,231‌
290,245‌
LargeCap
S&P
500
Index
Account
(a)
10,472,694‌
204,636‌
$
494,881‌
TOTAL
INVESTMENT
COMPANIES
$
820,858‌
Total
Investments
$
820,858‌
Other
Assets
and
Liabilities
-  0.48%
3,928‌
TOTAL
NET
ASSETS
-
100.00%
$
824,786‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
35.19‌%
Domestic
Equity
Funds
34.83‌%
Money
Market
Funds
19.68‌%
International
Equity
Funds
9.82‌%
Other
Assets
and
Liabilities
0.48‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
267,381‌
$
39,077‌
$
32,258‌
$
290,245‌
International
Equity
Index
Fund
76,620‌
20,921‌
9,397‌
81,010‌
LargeCap
S&P
500
Index
Account
191,472‌
43,479‌
28,817‌
204,636‌
MidCap
S&P
400
Index
Fund
38,707‌
12,459‌
6,881‌
41,131‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
1,047‌
339,341‌
178,048‌
162,340‌
SmallCap
S&P
600
Index
Fund
38,635‌
14,266‌
6,205‌
41,496‌
$
613,862‌
$
469,543‌
$
261,606‌
$
820,858‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
63‌
$
—‌
$
15,982‌
International
Equity
Index
Fund
—‌
(53‌)
—‌
(7,081‌)
LargeCap
S&P
500
Index
Account
—‌
(29‌)
—‌
(1,469‌)
MidCap
S&P
400
Index
Fund
—‌
9‌
—‌
(3,163‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
184‌
—‌
—‌
—‌
SmallCap
S&P
600
Index
Fund
—‌
174‌
—‌
(5,374‌)
$
184‌
$
164‌
$
—‌
$
(1,105‌)
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
September
2020
Short
462‌
$
71,384‌
$
734‌
Total
$
734‌
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
Diversified
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
120
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
9.93%
International
Equity
Index
Fund
(a)
1,187,851‌
$
11,189‌
MidCap
S&P
400
Index
Fund
(a)
483,912‌
8,522‌
SmallCap
S&P
600
Index
Fund
(a)
422,252‌
8,597‌
$
28,308‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
90.10%
Bond
Market
Index
Account
(a)
16,371,962‌
186,149‌
LargeCap
S&P
500
Index
Account
(a)
3,616,270‌
70,662‌
$
256,811‌
TOTAL
INVESTMENT
COMPANIES
$
285,119‌
Total
Investments
$
285,119‌
Other
Assets
and
Liabilities
-  (0.03)%
(79‌)
TOTAL
NET
ASSETS
-
100.00%
$
285,040‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
65.31‌%
Domestic
Equity
Funds
30.80‌%
International
Equity
Funds
3.92‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
179,434‌
$
24,446‌
$
28,248‌
$
186,149‌
International
Equity
Index
Fund
11,502‌
2,698‌
2,033‌
11,189‌
LargeCap
S&P
500
Index
Account
71,571‌
14,012‌
14,552‌
70,662‌
MidCap
S&P
400
Index
Fund
8,691‌
2,409‌
1,924‌
8,522‌
SmallCap
S&P
600
Index
Fund
8,768‌
2,728‌
1,808‌
8,597‌
$
279,966‌
$
46,293‌
$
48,565‌
$
285,119‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
—‌
$
215‌
$
—‌
$
10,302‌
International
Equity
Index
Fund
—‌
(4‌)
—‌
(974‌)
LargeCap
S&P
500
Index
Account
—‌
872‌
—‌
(1,241‌)
MidCap
S&P
400
Index
Fund
—‌
(6‌)
—‌
(648‌)
SmallCap
S&P
600
Index
Fund
—‌
(18‌)
—‌
(1,073‌)
$
—‌
$
1,059‌
$
—‌
$
6,366‌
Amounts
in
thousands.
Schedule
of
Investments
Diversified
International
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
121
INVESTMENT
COMPANIES
-
1.60%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.60%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
3,079,357‌
$
3,0
79‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
623,410‌
623‌
$
3,70
2‌
TOTAL
INVESTMENT
COMPANIES
$
3,70
2‌
COMMON
STOCKS
-
99.09%
Shares
Held
Value
(000's)
Apparel
-
1.62%
Adidas
AG
(d)
4,141‌
$
1,092‌
boohoo
Group
PLC
(d)
73,502‌
377‌
LVMH
Moet
Hennessy
Louis
Vuitton
SE
5,215‌
2,302‌
$
3,771‌
Automobile
Manufacturers
-
3.74%
Ferrari
NV
9,265‌
1,587‌
Honda
Motor
Co
Ltd
37,300‌
955‌
Kia
Motors
Corp
22,088‌
597‌
Maruti
Suzuki
India
Ltd
12,609‌
976‌
Toyota
Motor
Corp
59,200‌
3,723‌
Volvo
AB
-
B
Shares
(d)
54,536‌
858‌
$
8,696‌
Automobile
Parts
&
Equipment
-
0.61%
Toyota
Industries
Corp
26,500‌
1,409‌
Banks
-
6.08%
Bank
Leumi
Le-Israel
BM
186,004‌
935‌
Canadian
Imperial
Bank
of
Commerce
15,200‌
1,016‌
Credicorp
Ltd
9,318‌
1,246‌
DBS
Group
Holdings
Ltd
123,200‌
1,854‌
DNB
ASA
(d)
92,415‌
1,233‌
Erste
Group
Bank
AG
(d)
29,622‌
700‌
Grupo
Financiero
Banorte
SAB
de
CV
(d)
214,059‌
741‌
HDFC
Bank
Ltd
ADR
15,362‌
698‌
ICICI
Bank
Ltd
ADR
52,858‌
491‌
Kotak
Mahindra
Bank
Ltd
27,147‌
490‌
Mediobanca
Banca
di
Credito
Finanziario
SpA
133,003‌
960‌
PT
Bank
Central
Asia
Tbk
644,400‌
1,289‌
Toronto-Dominion
Bank/The
40,500‌
1,808‌
United
Overseas
Bank
Ltd
44,300‌
647‌
$
14,108‌
Beverages
-
0.62%
Carlsberg
A/S
10,880‌
1,443‌
Biotechnology
-
1.23%
CSL
Ltd
14,339‌
2,852‌
Building
Materials
-
1.63%
Anhui
Conch
Cement
Co
Ltd
75,598‌
568‌
China
Lesso
Group
Holdings
Ltd
332,000‌
436‌
Cie
de
Saint-Gobain
(d)
24,203‌
873‌
CRH
PLC
44,763‌
1,541‌
HeidelbergCement
AG
6,757‌
362‌
$
3,780‌
Chemicals
-
1.69%
BASF
SE
18,435‌
1,035‌
Evonik
Industries
AG
30,352‌
773‌
Koninklijke
DSM
NV
10,270‌
1,426‌
Nutrien
Ltd
21,200‌
681‌
$
3,915‌
Commercial
Services
-
1.60%
Adecco
Group
AG
13,677‌
645‌
Adyen
NV
(d),(e)
899‌
1,310‌
Aggreko
PLC
19,611‌
108‌
Dai
Nippon
Printing
Co
Ltd
31,300‌
720‌
New
Oriental
Education
&
Technology
Group
Inc
ADR
(d)
7,184‌
935‌
$
3,718‌
Computers
-
2.64%
Capgemini
SE
12,047‌
1,390‌
Logitech
International
SA
38,994‌
2,555‌
Nomura
Research
Institute
Ltd
40,200‌
1,098‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
(continued)
Obic
Co
Ltd
6,200‌
$
1,093‌
$
6,136‌
Consumer
Products
-
0.47%
Hindustan
Unilever
Ltd
38,019‌
1,099‌
Cosmetics
&
Personal
Care
-
0.42%
Unilever
NV
18,291‌
975‌
Distribution
&
Wholesale
-
2.12%
Bunzl
PLC
19,840‌
532‌
Ferguson
PLC
22,964‌
1,877‌
ITOCHU
Corp
89,000‌
1,926‌
Mitsubishi
Corp
28,100‌
594‌
$
4,929‌
Diversified
Financial
Services
-
2.08%
Housing
Development
Finance
Corp
Ltd
51,518‌
1,198‌
KB
Financial
Group
Inc
27,651‌
783‌
London
Stock
Exchange
Group
PLC
8,309‌
864‌
ORIX
Corp
129,600‌
1,609‌
Tisco
Financial
Group
PCL
164,300‌
371‌
$
4,825‌
Electric
-
2.35%
Enel
SpA
275,388‌
2,382‌
Iberdrola
SA
217,668‌
2,541‌
Northland
Power
Inc
21,400‌
536‌
$
5,459‌
Electrical
Components
&
Equipment
-
0.43%
Delta
Electronics
Inc
173,000‌
987‌
Electronics
-
1.55%
Halma
PLC
33,563‌
956‌
Hoya
Corp
27,496‌
2,633‌
$
3,589‌
Energy
-
Alternate
Sources
-
0.68%
Vestas
Wind
Systems
A/S
15,515‌
1,589‌
Entertainment
-
0.29%
Flutter
Entertainment
PLC
5,030‌
664‌
Food
-
4.13%
Dino
Polska
SA
(d),(e)
2,700‌
137‌
Koninklijke
Ahold
Delhaize
NV
35,625‌
971‌
Nestle
India
Ltd
3,021‌
686‌
Nestle
SA
49,877‌
5,530‌
Seven
&
i
Holdings
Co
Ltd
22,700‌
743‌
Uni
-President
Enterprises
Corp
630,000‌
1,526‌
$
9,593‌
Forest
Products
&
Paper
-
0.43%
Mondi
PLC
53,905‌
1,008‌
Hand
&
Machine
Tools
-
1.28%
Amada
Co
Ltd
72,200‌
591‌
Techtronic
Industries
Co
Ltd
240,500‌
2,380‌
$
2,971‌
Healthcare
-
Products
-
1.68%
Ambu
A/S
14,094‌
445‌
Carl
Zeiss
Meditec
AG
4,176‌
407‌
GN
Store
Nord
A/S
8,486‌
454‌
Koninklijke
Philips
NV
(d)
37,475‌
1,751‌
Sartorius
Stedim
Biotech
3,333‌
845‌
$
3,902‌
Healthcare
-
Services
-
1.81%
ICON
PLC
(d)
10,518‌
1,772‌
Lonza
Group
AG
4,607‌
2,440‌
$
4,212‌
Home
Builders
-
1.01%
Persimmon
PLC
46,402‌
1,313‌
Taylor
Wimpey
PLC
583,293‌
1,030‌
$
2,343‌
Home
Furnishings
-
1.50%
Howden
Joinery
Group
PLC
135,999‌
931‌
Sony
Corp
36,800‌
2,540‌
$
3,471‌
Schedule
of
Investments
Diversified
International
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
122
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
6.44%
AIA
Group
Ltd
196,800‌
$
1,842‌
ASR
Nederland
NV
24,394‌
751‌
AXA
SA
(f)
72,918‌
1,534‌
BB
Seguridade
Participacoes
SA
110,431‌
560‌
Fairfax
Financial
Holdings
Ltd
2,800‌
865‌
Hannover
Rueck
SE
9,136‌
1,579‌
ICICI
Lombard
General
Insurance
Co
Ltd
(e)
29,369‌
493‌
Legal
&
General
Group
PLC
515,727‌
1,406‌
NN
Group
NV
26,200‌
881‌
PICC
Property
&
Casualty
Co
Ltd
692,000‌
575‌
Prudential
PLC
84,619‌
1,275‌
Sompo
Holdings
Inc
30,100‌
1,036‌
Tokio
Marine
Holdings
Inc
37,700‌
1,650‌
Unipol
Gruppo
SpA
(d)
130,134‌
508‌
$
14,955‌
Internet
-
7.62%
Alibaba
Group
Holding
Ltd
ADR
(d)
11,958‌
2,579‌
Alibaba
Group
Holding
Ltd
(d)
101,736‌
2,645‌
MercadoLibre
Inc
(d)
681‌
671‌
Naspers
Ltd
8,709‌
1,601‌
NCSoft
Corp
836‌
622‌
Shopify
Inc
(d)
2,346‌
2,227‌
Tencent
Holdings
Ltd
91,993‌
5,895‌
Vipshop
Holdings
Ltd
ADR
(d)
72,794‌
1,449‌
$
17,689‌
Investment
Companies
-
0.34%
Kinnevik
AB
29,824‌
787‌
Machinery
-
Construction
&
Mining
-
0.53%
Komatsu
Ltd
59,600‌
1,221‌
Machinery
-
Diversified
-
1.55%
Daifuku
Co
Ltd
7,000‌
613‌
Keyence
Corp
4,000‌
1,676‌
Miura
Co
Ltd
10,800‌
450‌
Valmet
Oyj
33,058‌
867‌
$
3,606‌
Metal
Fabrication
&
Hardware
-
1.04%
NSK
Ltd
69,300‌
517‌
SKF
AB
101,791‌
1,903‌
$
2,420‌
Mining
-
2.40%
Franco-Nevada
Corp
12,901‌
1,802‌
MMC
Norilsk
Nickel
PJSC
ADR
39,666‌
1,044‌
Rio
Tinto
Ltd
39,764‌
2,723‌
$
5,569‌
Miscellaneous
Manufacturers
-
1.65%
JSR
Corp
36,800‌
714‌
Pidilite
Industries
Ltd
30,656‌
557‌
Siemens
AG
16,039‌
1,892‌
Trelleborg
AB
(d)
46,082‌
676‌
$
3,839‌
Oil
&
Gas
-
3.07%
LUKOIL
PJSC
ADR
15,043‌
1,118‌
Neste
Oyj
63,955‌
2,512‌
Parkland
Corp/Canada
20,600‌
512‌
Petrobras
Distribuidora
SA
111,700‌
441‌
Reliance
Industries
Ltd
67,783‌
1,542‌
Suncor
Energy
Inc
59,100‌
996‌
$
7,121‌
Pharmaceuticals
-
5.30%
Galapagos
NV
(d)
3,530‌
697‌
Novartis
AG
37,514‌
3,268‌
Novo
Nordisk
A/S
42,545‌
2,772‌
Roche
Holding
AG
16,101‌
5,578‌
$
12,315‌
Pipelines
-
1.46%
Pembina
Pipeline
Corp
70,500‌
1,763‌
TC
Energy
Corp
38,300‌
1,636‌
$
3,399‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Private
Equity
-
2.47%
3i
Group
PLC
225,576‌
$
2,323‌
Brookfield
Asset
Management
Inc
79,469‌
2,615‌
Intermediate
Capital
Group
PLC
49,460‌
789‌
$
5,727‌
Real
Estate
-
1.53%
CK
Asset
Holdings
Ltd
164,500‌
987‌
PSP
Swiss
Property
AG
823‌
93‌
Sun
Hung
Kai
Properties
Ltd
61,000‌
779‌
Tokyo
Tatemono
Co
Ltd
(f)
37,900‌
436‌
Vonovia
SE
20,652‌
1,262‌
$
3,557‌
Retail
-
4.42%
Alimentation
Couche-Tard
Inc
86,246‌
2,704‌
ANTA
Sports
Products
Ltd
85,000‌
756‌
Hennes
&
Mauritz
AB
41,234‌
602‌
Home
Product
Center
PCL
1,333,500‌
670‌
JD
Sports
Fashion
PLC
109,002‌
839‌
Li
Ning
Co
Ltd
263,000‌
842‌
Lojas
Renner
SA
21,500‌
167‌
Magazine
Luiza
SA
46,500‌
614‌
Pan
Pacific
International
Holdings
Corp
85,900‌
1,891‌
Wal-Mart
de
Mexico
SAB
de
CV
495,022‌
1,184‌
$
10,269‌
Semiconductors
-
8.16%
ASML
Holding
NV
10,696‌
3,913‌
MediaTek
Inc
44,000‌
870‌
NXP
Semiconductors
NV
16,012‌
1,826‌
Samsung
Electronics
Co
Ltd
105,075‌
4,651‌
SK
Hynix
Inc
24,592‌
1,756‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
555,140‌
5,929‌
$
18,945‌
Software
-
1.65%
Capcom
Co
Ltd
26,800‌
981‌
Dassault
Systemes
SE
8,014‌
1,391‌
Nemetschek
SE
9,246‌
635‌
NetEase
Inc
48,300‌
833‌
$
3,840‌
Telecommunications
-
3.84%
Deutsche
Telekom
AG
81,705‌
1,371‌
Nice
Ltd
ADR
(d)
9,031‌
1,709‌
Nippon
Telegraph
&
Telephone
Corp
103,000‌
2,400‌
Orange
SA
68,999‌
825‌
SoftBank
Group
Corp
52,000‌
2,622‌
$
8,927‌
Toys,
Games
&
Hobbies
-
0.96%
Nintendo
Co
Ltd
5,000‌
2,235‌
Transportation
-
0.97%
Canadian
National
Railway
Co
25,428‌
2,250‌
TOTAL
COMMON
STOCKS
$
230,115‌
PREFERRED
STOCKS
-
0.44%
Shares
Held
Value
(000's)
Investment
Companies
-
0.24%
Itausa
SA
0.08%
317,046‌
$
563‌
Telecommunications
-
0.20%
Telefonica
Brasil
SA
2.68%
51,500‌
458‌
TOTAL
PREFERRED
STOCKS
$
1,021‌
Total
Investments
$
234,83
8‌
Other
Assets
and
Liabilities
-  (1.13)%
(2,61
4‌
)
TOTAL
NET
ASSETS
-
100.00%
$
232,224‌
Schedule
of
Investments
Diversified
International
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
123
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$3,079
or
1.33%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,940
or
0.84%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Location
Percent
Japan
16.39‌%
Canada
9.22‌%
Switzerland
8.66‌%
United
Kingdom
8.32‌%
China
7.54‌%
Netherlands
5.53‌%
Germany
4.48‌%
Taiwan
4.01‌%
France
3.94‌%
Korea,
Republic
Of
3.63‌%
India
3.54‌%
Denmark
2.88‌%
Hong
Kong
2.58‌%
Italy
2.34‌%
Sweden
2.08‌%
Ireland
1.71‌%
United
States
1.60‌%
Finland
1.45‌%
Australia
1.23‌%
Brazil
1.21‌%
Israel
1.14‌%
Spain
1.09‌%
Singapore
1.08‌%
Russian
Federation
0.93‌%
Mexico
0.83‌%
South
Africa
0.69‌%
Indonesia
0.56‌%
Peru
0.54‌%
Norway
0.53‌%
Thailand
0.45‌%
Austria
0.30‌%
Belgium
0.30‌%
Argentina
0.29‌%
Poland
0.06‌%
Other
Assets
and
Liabilities
(1.13‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,370‌
$
22,550‌
$
24,297‌
$
623‌
$
2,370‌
$
22,550‌
$
24,297‌
$
623‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
8‌
$
—‌
$
—‌
$
—‌
$
8‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Equity
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
124
INVESTMENT
COMPANIES
-
2.11%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.11%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
13,744,455‌
$
13,74
5‌
TOTAL
INVESTMENT
COMPANIES
$
13,74
5‌
COMMON
STOCKS
-
97.69%
Shares
Held
Value
(000's)
Apparel
-
1.53%
NIKE
Inc
101,456‌
$
9,948‌
Automobile
Manufacturers
-
2.40%
PACCAR
Inc
209,302‌
15,666‌
Automobile
Parts
&
Equipment
-
1.61%
Magna
International
Inc
236,290‌
10,522‌
Banks
-
9.09%
First
Republic
Bank/CA
106,007‌
11,236‌
JPMorgan
Chase
&
Co
174,755‌
16,437‌
Morgan
Stanley
165,817‌
8,009‌
PNC
Financial
Services
Group
Inc
/The
109,353‌
11,505‌
Truist
Financial
Corp
148,659‌
5,582‌
US
Bancorp
176,770‌
6,509‌
$
59,278‌
Beverages
-
1.87%
Coca-Cola
Co/The
272,189‌
12,161‌
Biotechnology
-
1.24%
Corteva
Inc
301,352‌
8,073‌
Chemicals
-
2.66%
Air
Products
and
Chemicals
Inc
39,559‌
9,552‌
PPG
Industries
Inc
73,640‌
7,810‌
$
17,362‌
Computers
-
1.80%
Apple
Inc
32,161‌
11,732‌
Diversified
Financial
Services
-
4.36%
BlackRock
Inc
33,463‌
18,207‌
Discover
Financial
Services
203,758‌
10,206‌
$
28,413‌
Electric
-
6.48%
Eversource
Energy
99,530‌
8,288‌
NextEra
Energy
Inc
40,627‌
9,757‌
Sempra
Energy
48,857‌
5,728‌
WEC
Energy
Group
Inc
109,948‌
9,637‌
Xcel
Energy
Inc
141,532‌
8,846‌
$
42,256‌
Electronics
-
0.81%
Honeywell
International
Inc
36,612‌
5,294‌
Food
-
3.95%
Hormel
Foods
Corp
309,617‌
14,945‌
Tyson
Foods
Inc
180,781‌
10,795‌
$
25,740‌
Healthcare
-
Products
-
4.53%
Abbott
Laboratories
178,549‌
16,325‌
Medtronic
PLC
143,814‌
13,188‌
$
29,513‌
Insurance
-
4.75%
Allstate
Corp/The
30,685‌
2,976‌
Chubb
Ltd
90,990‌
11,521‌
Fidelity
National
Financial
Inc
273,608‌
8,389‌
Swiss
Re
AG
ADR
419,860‌
8,083‌
$
30,969‌
Machinery
-
Diversified
-
2.47%
Deere
&
Co
102,418‌
16,095‌
Media
-
2.51%
Walt
Disney
Co/The
146,490‌
16,335‌
Miscellaneous
Manufacturers
-
2.61%
3M
Co
16,061‌
2,505‌
Parker-Hannifin
Corp
79,080‌
14,493‌
$
16,998‌
Oil
&
Gas
-
5.01%
Chevron
Corp
103,385‌
9,225‌
EOG
Resources
Inc
165,110‌
8,364‌
Exxon
Mobil
Corp
53,075‌
2,374‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Oil
&
Gas
(continued)
Marathon
Petroleum
Corp
238,411‌
$
8,912‌
Royal
Dutch
Shell
PLC
-
B
shares
ADR
123,322‌
3,755‌
$
32,630‌
Pharmaceuticals
-
9.62%
Becton
Dickinson
and
Co
49,898‌
11,939‌
Merck
&
Co
Inc
187,548‌
14,503‌
Novartis
AG
ADR
120,358‌
10,512‌
Pfizer
Inc
275,052‌
8,994‌
Roche
Holding
AG
ADR
385,993‌
16,745‌
$
62,693‌
Pipelines
-
1.34%
Enterprise
Products
Partners
LP
479,811‌
8,718‌
Private
Equity
-
2.21%
KKR
&
Co
Inc
467,066‌
14,423‌
REITs
-
5.19%
Alexandria
Real
Estate
Equities
Inc
75,730‌
12,287‌
Digital
Realty
Trust
Inc
94,490‌
13,428‌
Realty
Income
Corp
136,192‌
8,104‌
$
33,819‌
Retail
-
3.63%
Costco
Wholesale
Corp
54,923‌
16,653‌
Starbucks
Corp
95,128‌
7,001‌
$
23,654‌
Semiconductors
-
3.27%
Microchip
Technology
Inc
108,133‌
11,388‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
175,188‌
9,945‌
$
21,333‌
Software
-
3.68%
Fidelity
National
Information
Services
Inc
56,639‌
7,595‌
Microsoft
Corp
39,910‌
8,122‌
SAP
SE
ADR
58,951‌
8,253‌
$
23,970‌
Telecommunications
-
5.19%
BCE
Inc
383,238‌
16,008‌
Verizon
Communications
Inc
323,680‌
17,844‌
$
33,852‌
Toys,
Games
&
Hobbies
-
1.89%
Hasbro
Inc
164,194‌
12,306‌
Transportation
-
1.99%
Union
Pacific
Corp
76,869‌
12,99
5‌
TOTAL
COMMON
STOCKS
$
636,74
8‌
Total
Investments
$
650,493‌
Other
Assets
and
Liabilities
-  0.20%
1,315‌
TOTAL
NET
ASSETS
-
100.00%
$
651,808‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Schedule
of
Investments
Equity
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
125
Portfolio
Summary  (unaudited)
Sector
Percent
Financial
25.60‌%
Consumer,
Non-cyclical
21.21‌%
Consumer,
Cyclical
11.06‌%
Technology
8.75‌%
Industrial
7.88‌%
Communications
7.70‌%
Utilities
6.48‌%
Energy
6.35‌%
Basic
Materials
2.66‌%
Money
Market
Funds
2.11‌%
Other
Assets
and
Liabilities
0.20‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
14,848‌
$
99,84
6‌
$
100,949‌
$
13,74
5‌
$
14,848‌
$
99,84
6‌
$
100,949‌
$
13,74
5‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
58‌
$
—‌
$
—‌
$
—‌
$
58‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
126
INVESTMENT
COMPANIES
-
8.50%
Shares
Held
Value
(000's)
Money
Market
Funds
-
8.50%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
20,544,429‌
$
20,544‌
TOTAL
INVESTMENT
COMPANIES
$
20,544‌
BONDS
-
20.74%
Principal
Amount
(000's)
Value
(000's)
Commercial
Mortgage
Backed
Securities
-
4.87%
COMM
2014-CCRE19
Mortgage
Trust
4.89%,
08/10/2047
(d)
$
600‌
$
577‌
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.37%,
05/25/2022
1,100‌
1,132‌
3.30%,
04/25/2023
(d)
1,300‌
1,391‌
3.46%,
08/25/2023
(d)
1,200‌
1,297‌
3.53%,
10/25/2023
(d)
870‌
946‌
Ginnie
Mae
0.50%,
10/16/2054
(d),(e)
9,230‌
179‌
0.55%,
04/16/2047
(d),(e)
8,980‌
263‌
0.58%,
03/16/2060
(d),(e)
4,492‌
239‌
0.68%,
11/16/2052
(d),(e)
11,713‌
377‌
0.77%,
09/16/2053
(d),(e)
8,638‌
288‌
0.77%,
02/16/2055
(d),(e)
19,225‌
332‌
0.83%,
02/16/2053
(d),(e)
10,480‌
378‌
2.60%,
05/16/2059
628‌
659‌
2.60%,
03/16/2060
1,068‌
1,121‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.61%,
08/15/2046
(d),(f)
2,000‌
2,033‌
Wells
Fargo
Commercial
Mortgage
Trust
2014-LC16
4.46%,
08/15/2050
600‌
558‌
$
11,770‌
Credit
Card
Asset
Backed
Securities
-
2.51%
American
Express
Credit
Account
Master
Trust
0.42%,
04/15/2024
3,500‌
3,505‌
1.00
x
1
Month
USD
LIBOR
+
0.24%
Chase
Issuance
Trust
0.38%,
04/17/2023
2,558‌
2,560‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
$
6,065‌
Mortgage
Backed
Securities
-
12.57%
EverBank
Mortgage
Loan
Trust
18-1
3.50%,
02/25/2048
(d),(f)
472‌
489‌
Fannie
Mae
Grantor
Trust
2005-T1
0.53%,
05/25/2035
185‌
185‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
Fannie
Mae
Interest
Strip
3.50%,
12/25/2043
(d),(e)
1,323‌
197‌
Fannie
Mae
REMICS
3.00%,
10/25/2040
(e)
4,102‌
202‌
3.00%,
04/25/2042
768‌
791‌
3.00%,
08/25/2042
255‌
260‌
3.00%,
02/25/2043
378‌
392‌
3.00%,
03/25/2046
583‌
606‌
3.00%,
05/25/2048
178‌
186‌
3.18%,
06/25/2045
(e)
3,185‌
176‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.00%
3.50%,
01/25/2040
(e)
1,768‌
80‌
3.50%,
11/25/2042
2,500‌
2,717‌
4.00%,
12/25/2039
(e)
835‌
35‌
4.50%,
04/25/2045
(e)
2,608‌
444‌
5.82%,
10/25/2046
(e)
651‌
153‌
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
7.00%,
04/25/2032
101‌
120‌
Freddie
Mac
REMICS
1.50%,
04/15/2028
769‌
780‌
2.50%,
11/15/2032
800‌
847‌
2.50%,
02/15/2043
798‌
841‌
3.00%,
11/15/2030
(e)
1,617‌
41‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Freddie
Mac
REMICS  
(continued)
3.00%,
11/15/2035
$
950‌
$
1,006‌
3.00%,
06/15/2040
357‌
368‌
3.00%,
10/15/2041
727‌
750‌
3.00%,
04/15/2046
241‌
260‌
3.15%,
05/15/2038
(e)
2,845‌
148‌
1.00
x
12
Month
Treasury
Average
Index
+
0.00%
3.50%,
03/15/2029
294‌
309‌
3.50%,
08/15/2040
(e)
1,971‌
112‌
3.50%,
05/15/2043
837‌
863‌
3.50%,
09/15/2043
1,200‌
1,237‌
4.00%,
05/15/2039
4,200‌
4,372‌
Ginnie
Mae
3.50%,
05/20/2039
50‌
51‌
3.50%,
10/20/2044
(e)
4,369‌
479‌
3.50%,
11/20/2045
930‌
985‌
4.00%,
02/20/2044
(e)
2,750‌
233‌
4.00%,
04/20/2044
(e)
1,411‌
125‌
4.00%,
01/20/2046
(e)
1,425‌
117‌
5.90%,
07/16/2043
(e)
3,144‌
636‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.91%,
06/20/2046
(e)
636‌
133‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
12/20/2043
(e)
1,407‌
352‌
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
6.01%,
08/20/2042
(e)
1,149‌
206‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
09/20/2047
(e)
723‌
136‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
08/16/2045
(e)
451‌
102‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.06%,
06/20/2044
(e)
1,769‌
239‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.56%,
11/20/2045
(e)
671‌
160‌
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
JP
Morgan
Mortgage
Trust
2016-4
3.50%,
10/25/2046
(d),(f)
575‌
588‌
JP
Morgan
Mortgage
Trust
2017-3
3.82%,
08/25/2047
(d),(f)
557‌
566‌
JP
Morgan
Mortgage
Trust
2018-8
4.00%,
01/25/2049
(d),(f)
501‌
513‌
JP
Morgan
Mortgage
Trust
2019-9
3.50%,
05/25/2050
(d),(f)
1,200‌
1,235‌
New
Residential
Mortgage
Loan
Trust
2014-1
5.00%,
01/25/2054
(d),(f)
1,398‌
1,508‌
New
Residential
Mortgage
Loan
Trust
2015-2
5.53%,
08/25/2055
(d),(f)
1,036‌
1,105‌
Sequoia
Mortgage
Trust
2013-2
3.64%,
02/25/2043
(d)
627‌
639‌
Sequoia
Mortgage
Trust
2017-2
3.63%,
02/25/2047
(d),(f)
459‌
454‌
Sequoia
Mortgage
Trust
2017-3
3.79%,
04/25/2047
(d),(f)
461‌
457‌
Sequoia
Mortgage
Trust
2018-5
3.50%,
05/25/2048
(d),(f)
382‌
395‌
$
30,381‌
Other
Asset
Backed
Securities
-
0.79%
Chase
Funding
Trust
Series
2004-1
0.64%,
12/25/2033
95‌
85‌
1.00
x
1
Month
USD
LIBOR
+
0.46%
CNH
Equipment
Trust
2016-C
1.76%,
09/15/2023
500‌
502‌
Towd
Point
Mortgage
Trust
4.25%,
10/25/2053
(d),(f)
550‌
579‌
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
127
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
$
722‌
$
738‌
$
1,904‌
TOTAL
BONDS
$
50,120‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
75.23%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
10.83%
2.00%,
10/01/2031
$
611‌
$
636‌
2.50%,
02/01/2028
534‌
568‌
3.00%,
02/01/2027
186‌
196‌
3.00%,
01/01/2031
469‌
502‌
3.00%,
01/01/2033
830‌
891‌
3.00%,
03/01/2037
353‌
373‌
3.00%,
08/01/2042
642‌
688‌
3.00%,
10/01/2042
465‌
498‌
3.00%,
10/01/2042
888‌
952‌
3.00%,
10/01/2042
992‌
1,082‌
3.00%,
05/01/2043
630‌
684‌
3.00%,
10/01/2046
694‌
757‌
3.00%,
01/01/2047
895‌
976‌
3.50%,
02/01/2032
926‌
991‌
3.50%,
04/01/2042
1,309‌
1,417‌
3.50%,
05/01/2042
506‌
554‌
3.50%,
07/01/2042
1,865‌
2,029‌
3.50%,
02/01/2044
730‌
789‌
3.50%,
07/01/2046
614‌
677‌
3.50%,
01/01/2048
908‌
1,001‌
3.50%,
04/01/2049
1,778‌
1,943‌
4.00%,
07/01/2042
678‌
767‌
4.00%,
01/01/2043
860‌
944‌
4.00%,
06/01/2043
1,006‌
1,113‌
4.00%,
10/01/2045
1,043‌
1,169‌
4.00%,
01/01/2048
1,088‌
1,230‌
4.23%,
09/01/2032
12‌
13‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.23%
4.50%,
11/01/2043
761‌
876‌
5.00%,
10/01/2025
84‌
92‌
5.00%,
02/01/2033
123‌
139‌
5.00%,
06/01/2033
145‌
160‌
5.00%,
01/01/2034
397‌
456‌
5.00%,
07/01/2035
80‌
92‌
5.00%,
07/01/2035
19‌
22‌
5.00%,
07/01/2035
9‌
10‌
5.00%,
10/01/2035
35‌
40‌
5.50%,
03/01/2033
88‌
100‌
5.50%,
04/01/2038
3‌
4‌
5.50%,
05/01/2038
25‌
29‌
6.00%,
12/01/2023
2‌
2‌
6.00%,
05/01/2031
10‌
12‌
6.00%,
12/01/2031
10‌
12‌
6.00%,
09/01/2032
6‌
7‌
6.00%,
11/01/2033
48‌
54‌
6.00%,
11/01/2033
12‌
13‌
6.00%,
09/01/2034
41‌
48‌
6.00%,
02/01/2035
37‌
43‌
6.00%,
10/01/2036
39‌
45‌
6.00%,
03/01/2037
38‌
43‌
6.00%,
01/01/2038
67‌
79‌
6.00%,
01/01/2038
7‌
8‌
6.00%,
04/01/2038
30‌
34‌
6.50%,
12/01/2021
3‌
3‌
6.50%,
04/01/2022
5‌
5‌
6.50%,
05/01/2022
4‌
4‌
6.50%,
05/01/2023
5‌
5‌
6.50%,
04/01/2024
1‌
2‌
6.50%,
04/01/2026
2‌
2‌
6.50%,
05/01/2026
1‌
1‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
6.50%,
05/01/2026
$
2‌
$
2‌
6.50%,
01/01/2028
3‌
3‌
6.50%,
03/01/2028
2‌
2‌
6.50%,
10/01/2028
12‌
14‌
6.50%,
11/01/2028
3‌
3‌
6.50%,
12/01/2028
6‌
7‌
6.50%,
03/01/2029
3‌
3‌
6.50%,
07/01/2031
18‌
20‌
6.50%,
08/01/2031
5‌
5‌
6.50%,
10/01/2031
7‌
8‌
6.50%,
10/01/2031
7‌
8‌
6.50%,
12/01/2031
11‌
12‌
6.50%,
02/01/2032
11‌
13‌
6.50%,
05/01/2032
28‌
31‌
6.50%,
04/01/2035
5‌
6‌
7.00%,
09/01/2023
3‌
3‌
7.00%,
12/01/2023
1‌
1‌
7.00%,
01/01/2024
1‌
2‌
7.00%,
09/01/2027
3‌
3‌
7.00%,
01/01/2028
21‌
23‌
7.00%,
04/01/2028
12‌
13‌
7.00%,
05/01/2028
2‌
2‌
7.00%,
10/01/2031
5‌
5‌
7.00%,
10/01/2031
11‌
12‌
7.00%,
04/01/2032
37‌
44‌
7.50%,
10/01/2030
6‌
7‌
7.50%,
02/01/2031
2‌
2‌
7.50%,
02/01/2031
7‌
9‌
8.00%,
10/01/2030
13‌
16‌
8.50%,
07/01/2029
15‌
16‌
$
26,177‌
Federal
National
Mortgage
Association
(FNMA)
-
0.51%
3.00%,
04/01/2043
824‌
872‌
3.64%,
12/01/2032
11‌
11‌
1.00
x
12
Month
USD
LIBOR
+
1.64%
3.65%,
12/01/2033
67‌
68‌
1.00
x
12
Month
USD
LIBOR
+
1.65%
5.50%,
05/01/2033
13‌
14‌
6.00%,
05/01/2037
159‌
180‌
6.50%,
08/01/2025
14‌
15‌
6.50%,
11/01/2032
13‌
15‌
7.00%,
08/01/2028
13‌
14‌
7.00%,
12/01/2028
10‌
11‌
8.00%,
05/01/2027
6‌
6‌
8.50%,
10/01/2027
23‌
23‌
$
1,229‌
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
38.72%
2.00%,
02/01/2032
372‌
386‌
2.00%,
07/01/2035
(g)
1,250‌
1,293‌
2.00%,
07/01/2050
(g)
1,225‌
1,254‌
2.50%,
06/01/2027
850‌
902‌
2.50%,
08/01/2028
602‌
641‌
2.50%,
12/01/2031
720‌
765‌
2.50%,
09/01/2032
495‌
528‌
2.50%,
04/01/2050
2,057‌
2,146‌
2.50%,
07/01/2050
(g)
2,400‌
2,502‌
3.00%,
05/01/2029
690‌
736‌
3.00%,
08/01/2031
1,298‌
1,395‌
3.00%,
12/01/2034
1,631‌
1,715‌
3.00%,
10/01/2036
545‌
584‌
3.00%,
10/01/2042
1,318‌
1,433‌
3.00%,
11/01/2042
1,429‌
1,554‌
3.00%,
12/01/2042
1,285‌
1,398‌
3.00%,
02/01/2043
941‌
1,027‌
3.00%,
06/01/2043
1,609‌
1,750‌
3.00%,
08/01/2043
1,111‌
1,208‌
3.00%,
09/01/2046
1,332‌
1,450‌
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
128
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
10/01/2046
$
915‌
$
989‌
3.00%,
11/01/2046
1,392‌
1,527‌
3.00%,
01/01/2047
874‌
953‌
3.00%,
01/01/2047
896‌
977‌
3.00%,
10/01/2049
1,859‌
1,959‌
3.00%,
12/01/2049
1,386‌
1,461‌
3.00%,
01/01/2050
2,149‌
2,265‌
3.00%,
02/01/2050
2,009‌
2,118‌
3.50%,
08/01/2031
654‌
706‌
3.50%,
02/01/2033
1,045‌
1,128‌
3.50%,
09/01/2033
1,435‌
1,549‌
3.50%,
06/01/2039
540‌
576‌
3.50%,
02/01/2042
1,001‌
1,112‌
3.50%,
09/01/2042
1,632‌
1,792‌
3.50%,
11/01/2042
1,090‌
1,197‌
3.50%,
12/01/2042
1,206‌
1,331‌
3.50%,
02/01/2043
425‌
472‌
3.50%,
09/01/2044
1,735‌
1,925‌
3.50%,
10/01/2044
522‌
579‌
3.50%,
11/01/2044
516‌
573‌
3.50%,
03/01/2045
1,209‌
1,322‌
3.50%,
03/01/2045
534‌
589‌
3.50%,
06/01/2045
863‌
958‌
3.50%,
09/01/2045
773‌
848‌
3.50%,
10/01/2045
600‌
666‌
3.50%,
11/01/2045
579‌
639‌
3.50%,
01/01/2046
603‌
669‌
3.50%,
03/01/2046
427‌
474‌
3.50%,
04/01/2046
918‌
1,019‌
3.50%,
03/01/2047
905‌
1,004‌
3.50%,
10/01/2047
659‌
731‌
3.50%,
11/01/2048
1,856‌
2,059‌
3.50%,
05/01/2049
857‌
945‌
4.00%,
01/01/2034
433‌
466‌
4.00%,
10/01/2037
763‌
821‌
4.00%,
02/01/2041
1,203‌
1,346‌
4.00%,
02/01/2042
714‌
800‌
4.00%,
08/01/2043
421‌
476‌
4.00%,
10/01/2043
318‌
349‌
4.00%,
08/01/2044
467‌
528‌
4.00%,
10/01/2044
1,336‌
1,491‌
4.00%,
11/01/2044
445‌
503‌
4.00%,
12/01/2044
763‌
863‌
4.00%,
02/01/2045
758‌
857‌
4.00%,
08/01/2045
712‌
805‌
4.00%,
07/01/2046
633‌
715‌
4.00%,
08/01/2046
1,380‌
1,526‌
4.00%,
07/01/2047
941‌
1,064‌
4.00%,
10/01/2047
830‌
929‌
4.00%,
12/01/2047
766‌
865‌
4.50%,
08/01/2039
1,396‌
1,581‌
4.50%,
03/01/2042
359‌
413‌
4.50%,
09/01/2043
1,479‌
1,701‌
4.50%,
10/01/2043
782‌
900‌
4.50%,
11/01/2043
867‌
997‌
4.50%,
09/01/2045
630‌
715‌
4.50%,
10/01/2045
831‌
955‌
4.50%,
11/01/2045
1,215‌
1,379‌
4.50%,
08/01/2048
853‌
967‌
4.50%,
09/01/2048
1,620‌
1,861‌
4.50%,
12/01/2048
1,134‌
1,275‌
5.00%,
05/01/2033
989‌
1,128‌
5.00%,
04/01/2035
93‌
107‌
5.00%,
04/01/2035
71‌
81‌
5.00%,
07/01/2035
4‌
5‌
5.00%,
02/01/2038
327‌
375‌
5.00%,
02/01/2040
1,091‌
1,257‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.00%,
07/01/2041
$
883‌
$
1,026‌
5.50%,
05/01/2024
4‌
5‌
5.50%,
06/01/2033
50‌
57‌
5.50%,
02/01/2037
3‌
4‌
5.50%,
03/01/2038
80‌
92‌
6.00%,
06/01/2022
6‌
6‌
6.00%,
11/01/2028
12‌
13‌
6.00%,
12/01/2031
5‌
6‌
6.00%,
01/01/2033
41‌
47‌
6.00%,
07/01/2037
104‌
121‌
6.00%,
11/01/2037
3‌
3‌
6.00%,
12/01/2037
7‌
8‌
6.00%,
03/01/2038
53‌
62‌
6.50%,
11/01/2023
13‌
15‌
6.50%,
05/01/2024
4‌
5‌
6.50%,
09/01/2024
6‌
6‌
6.50%,
07/01/2025
8‌
9‌
6.50%,
02/01/2026
2‌
3‌
6.50%,
03/01/2026
1‌
1‌
6.50%,
05/01/2026
2‌
2‌
6.50%,
06/01/2026
1‌
1‌
6.50%,
07/01/2028
8‌
9‌
6.50%,
09/01/2028
15‌
16‌
6.50%,
02/01/2029
1‌
1‌
6.50%,
03/01/2029
4‌
5‌
6.50%,
04/01/2029
4‌
4‌
6.50%,
06/01/2031
10‌
11‌
6.50%,
01/01/2032
3‌
4‌
6.50%,
04/01/2032
3‌
4‌
6.50%,
08/01/2032
8‌
9‌
6.50%,
02/01/2033
8‌
10‌
6.50%,
12/01/2036
32‌
38‌
6.50%,
07/01/2037
11‌
12‌
6.50%,
07/01/2037
22‌
27‌
6.50%,
02/01/2038
26‌
31‌
7.00%,
10/01/2029
12‌
13‌
7.00%,
05/01/2031
4‌
4‌
7.00%,
11/01/2031
18‌
20‌
8.00%,
06/01/2030
2‌
2‌
$
93,592‌
Government
National
Mortgage
Association
(GNMA)
-
15.04%
2.50%,
07/01/2050
4,500‌
4,737‌
3.00%,
11/15/2042
750‌
796‌
3.00%,
12/15/2042
1,405‌
1,492‌
3.00%,
02/15/2043
1,271‌
1,371‌
3.00%,
05/15/2043
1,712‌
1,839‌
3.00%,
07/20/2045
1,360‌
1,453‌
3.00%,
07/20/2046
780‌
830‌
3.00%,
08/20/2046
1,714‌
1,824‌
3.00%,
09/20/2046
2,066‌
2,196‌
3.00%,
12/20/2046
1,015‌
1,079‌
3.00%,
02/20/2047
1,215‌
1,291‌
3.00%,
08/20/2047
857‌
910‌
3.50%,
01/15/2043
1,049‌
1,133‌
3.50%,
05/15/2043
1,181‌
1,275‌
3.50%,
06/20/2043
689‌
749‌
3.50%,
04/20/2045
645‌
694‌
3.50%,
06/20/2046
95‌
102‌
3.50%,
02/20/2047
760‌
826‌
3.50%,
04/20/2047
1,530‌
1,633‌
3.50%,
05/20/2047
864‌
934‌
3.50%,
11/20/2047
651‌
697‌
3.50%,
02/20/2048
1,731‌
1,841‌
4.00%,
08/15/2041
853‌
948‌
4.00%,
07/20/2047
768‌
825‌
4.00%,
01/20/2048
3,197‌
3,508‌
4.50%,
07/15/2040
444‌
497‌
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
129
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
5.00%,
09/15/2033
$
4‌
$
5‌
5.00%,
02/15/2034
244‌
278‌
5.00%,
09/15/2039
32‌
36‌
5.50%,
11/15/2033
21‌
23‌
5.50%,
05/20/2035
105‌
121‌
6.00%,
04/20/2026
3‌
3‌
6.00%,
05/20/2026
2‌
2‌
6.00%,
03/20/2028
2‌
2‌
6.00%,
06/20/2028
11‌
13‌
6.00%,
07/20/2028
6‌
6‌
6.00%,
02/20/2029
6‌
6‌
6.00%,
03/20/2029
12‌
13‌
6.00%,
07/20/2029
12‌
13‌
6.00%,
07/20/2033
95‌
109‌
6.50%,
12/20/2025
6‌
7‌
6.50%,
02/20/2026
4‌
4‌
6.50%,
03/20/2031
8‌
10‌
6.50%,
04/20/2031
9‌
11‌
7.00%,
01/15/2028
1‌
1‌
7.00%,
01/15/2028
1‌
1‌
7.00%,
01/15/2028
4‌
4‌
7.00%,
01/15/2028
2‌
3‌
7.00%,
01/15/2028
1‌
1‌
7.00%,
03/15/2028
51‌
53‌
7.00%,
05/15/2028
5‌
5‌
7.00%,
01/15/2029
11‌
12‌
7.00%,
03/15/2029
4‌
3‌
7.00%,
05/15/2031
7‌
8‌
7.00%,
09/15/2031
24‌
28‌
7.00%,
06/15/2032
80‌
92‌
7.50%,
04/15/2023
4‌
4‌
7.50%,
09/15/2023
1‌
1‌
7.50%,
09/15/2023
1‌
1‌
7.50%,
10/15/2023
2‌
2‌
7.50%,
11/15/2023
2‌
2‌
8.00%,
07/15/2026
1‌
1‌
8.00%,
08/15/2026
2‌
2‌
8.00%,
01/15/2027
1‌
1‌
8.00%,
02/15/2027
1‌
1‌
$
36,368‌
U.S.
Treasury
-
3.31%
2.13%,
12/31/2022
2,400‌
2,517‌
3.13%,
05/15/2021
2,500‌
2,564‌
4.50%,
02/15/2036
1,000‌
1,531‌
5.25%,
11/15/2028
1,000‌
1,384‌
$
7,996‌
U.S.
Treasury
Bill
-
6.82%
0.08%,
07/02/2020
(h)
6,000‌
6,000‌
0.11%,
07/30/2020
(h)
10,500‌
10,499‌
$
16,499‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
181,861‌
Total
Investments
$
252,525‌
Other
Assets
and
Liabilities
-  (4.47)%
(10,797‌)
TOTAL
NET
ASSETS
-
100.00%
$
241,728‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
(d)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(e)
Security
is
an
Interest
Only
Strip.
(f)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$9,922
or
4.10%
of
net
assets.
(g)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.  See
Notes
to
Financial
Statements
for
additional
information.
(h)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary  (unaudited)
Sector
Percent
Mortgage
Securities
82.54‌%
Government
10.13‌%
Money
Market
Funds
8.50‌%
Asset
Backed
Securities
3.30‌%
Other
Assets
and
Liabilities
(4.47‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
130
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
6,646‌
$
84,646‌
$
70,748‌
$
20,544‌
$
6,646‌
$
84,646‌
$
70,748‌
$
20,544‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
29‌
$
—‌
$
—‌
$
—‌
$
29‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
September
2020
Short
64‌
$
8,907‌
$
(23‌)
US
Long
Bond;
September
2020
Short
20‌
3,571‌
(6‌)
Total
$
(29‌)
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
International
Emerging
Markets
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
131
INVESTMENT
COMPANIES
-
1.97%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.97%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
53,110‌
$
53‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
1,444,741‌
1,445‌
$
1,498‌
TOTAL
INVESTMENT
COMPANIES
$
1,498‌
COMMON
STOCKS
-
97.05%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
3.22%
Ashok
Leyland
Ltd
503,400‌
$
314‌
Eicher
Motors
Ltd
850‌
206‌
Hyundai
Motor
Co
6,790‌
558‌
Kia
Motors
Corp
21,180‌
572‌
Maruti
Suzuki
India
Ltd
7,053‌
546‌
Tofas
Turk
Otomobil
Fabrikasi
AS
65,252‌
254‌
$
2,450‌
Automobile
Parts
&
Equipment
-
0.43%
Weichai
Power
Co
Ltd
172,000‌
324‌
Banks
-
9.50%
Banco
do
Brasil
SA
87,500‌
519‌
Bank
Rakyat
Indonesia
Persero
Tbk
PT
1,419,600‌
303‌
Commercial
International
Bank
Egypt
SAE
78,311‌
303‌
Credicorp
Ltd
7,113‌
951‌
Grupo
Financiero
Banorte
SAB
de
CV
(d)
154,900‌
536‌
HDFC
Bank
Ltd
49,866‌
701‌
ICICI
Bank
Ltd
110,763‌
516‌
Kotak
Mahindra
Bank
Ltd
13,631‌
246‌
Postal
Savings
Bank
of
China
Co
Ltd
(e)
325,000‌
187‌
PT
Bank
Central
Asia
Tbk
563,100‌
1,127‌
RHB
Bank
Bhd
207,500‌
233‌
Sberbank
of
Russia
PJSC
ADR
(d)
91,606‌
1,041‌
Shinhan
Financial
Group
Co
Ltd
23,195‌
561‌
$
7,224‌
Beverages
-
1.88%
Arca
Continental
SAB
de
CV
60,000‌
264‌
Kweichow
Moutai
Co
Ltd
3,800‌
789‌
Thai
Beverage
PCL
775,000‌
378‌
$
1,431‌
Building
Materials
-
2.68%
Anhui
Conch
Cement
Co
Ltd
89,195‌
671‌
China
Lesso
Group
Holdings
Ltd
316,000‌
414‌
Huaxin
Cement
Co
Ltd
154,875‌
523‌
UltraTech
Cement
Ltd
8,276‌
428‌
$
2,036‌
Chemicals
-
0.65%
Asian
Paints
Ltd
21,966‌
491‌
Commercial
Services
-
1.63%
New
Oriental
Education
&
Technology
Group
Inc
ADR
(d)
6,655‌
867‌
NICE
Information
Service
Co
Ltd
24,308‌
371‌
$
1,238‌
Computers
-
0.29%
Wiwynn
Corp
8,000‌
219‌
Consumer
Products
-
1.03%
Hindustan
Unilever
Ltd
26,980‌
780‌
Cosmetics
&
Personal
Care
-
0.24%
Colgate-Palmolive
India
Ltd
9,715‌
181‌
Distribution
&
Wholesale
-
0.44%
LG
Corp
5,576‌
333‌
Diversified
Financial
Services
-
4.22%
B3
SA
-
Brasil
Bolsa
Balcao
48,641‌
498‌
Fubon
Financial
Holding
Co
Ltd
289,000‌
432‌
Housing
Development
Finance
Corp
Ltd
52,992‌
1,232‌
KB
Financial
Group
Inc
18,764‌
531‌
Tisco
Financial
Group
PCL
230,900‌
521‌
$
3,214‌
Electrical
Components
&
Equipment
-
0.53%
Delta
Electronics
Inc
71,000‌
405‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electronics
-
0.30%
Taiwan
Union
Technology
Corp
46,000‌
$
226‌
Energy
-
Alternate
Sources
-
0.53%
Sao
Martinho
SA
104,582‌
407‌
Engineering
&
Construction
-
0.60%
Frontken
Corp
Bhd
259,600‌
156‌
Grupo
Aeroportuario
del
Pacifico
SAB
de
CV
42,000‌
303‌
$
459‌
Food
-
3.35%
China
Feihe
Ltd
(e)
125,000‌
250‌
Dino
Polska
SA
(d),(e)
3,918‌
200‌
Indofood
Sukses
Makmur
Tbk
PT
(d)
715,100‌
328‌
Minerva
SA/Brazil
(d)
171,400‌
413‌
Nestle
India
Ltd
1,040‌
236‌
Tingyi
Cayman
Islands
Holding
Corp
364,000‌
567‌
Uni
-President
Enterprises
Corp
124,000‌
301‌
X5
Retail
Group
NV
7,115‌
252‌
$
2,547‌
Forest
Products
&
Paper
-
0.20%
Mondi
PLC
8,108‌
152‌
Gas
-
1.22%
China
Resources
Gas
Group
Ltd
48,000‌
235‌
ENN
Energy
Holdings
Ltd
61,500‌
695‌
$
930‌
Healthcare
-
Services
-
0.29%
Pharmaron
Beijing
Co
Ltd
(e)
21,300‌
221‌
Holding
Companies
-
Diversified
-
0.90%
KOC
Holding
AS
95,010‌
250‌
Swire
Pacific
Ltd
82,000‌
436‌
$
686‌
Home
Furnishings
-
0.54%
Gree
Electric
Appliances
Inc
of
Zhuhai
51,096‌
410‌
Insurance
-
2.35%
AIA
Group
Ltd
36,800‌
344‌
ICICI
Lombard
General
Insurance
Co
Ltd
(e)
11,098‌
186‌
ICICI
Prudential
Life
Insurance
Co
Ltd
(e)
36,205‌
205‌
PICC
Property
&
Casualty
Co
Ltd
918,000‌
763‌
Qualitas
Controladora
SAB
de
CV
73,600‌
290‌
$
1,788‌
Internet
-
24.59%
AfreecaTV
Co
Ltd
4,514‌
239‌
Alibaba
Group
Holding
Ltd
ADR
(d)
13,162‌
2,839‌
Alibaba
Group
Holding
Ltd
(d)
5,500‌
148‌
Alibaba
Group
Holding
Ltd
(d)
105,296‌
2,738‌
JD.com
Inc
ADR
(d)
15,676‌
943‌
Meituan
Dianping
(d)
71,500‌
1,598‌
MercadoLibre
Inc
(d)
832‌
820‌
Naspers
Ltd
8,325‌
1,530‌
NCSoft
Corp
834‌
620‌
Tencent
Holdings
Ltd
98,200‌
6,293‌
Tencent
Music
Entertainment
Group
ADR
(d)
20,274‌
273‌
Vipshop
Holdings
Ltd
ADR
(d)
33,194‌
661‌
$
18,702‌
Iron
&
Steel
-
1.93%
Eregli
Demir
ve
Celik
Fabrikalari
TAS
351,227‌
440‌
POSCO
2,140‌
312‌
Severstal
PAO
41,664‌
504‌
Ternium
SA
ADR
(d)
13,964‌
212‌
$
1,468‌
Lodging
-
0.34%
NagaCorp
Ltd
220,000‌
257‌
Mining
-
1.99%
Impala
Platinum
Holdings
Ltd
49,011‌
330‌
MMC
Norilsk
Nickel
PJSC
ADR
25,149‌
662‌
Polyus
PJSC
6,226‌
524‌
$
1,516‌
Schedule
of
Investments
International
Emerging
Markets
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
132
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Miscellaneous
Manufacturers
-
1.86%
Elite
Material
Co
Ltd
42,000‌
$
229‌
Escorts
Ltd
12,027‌
166‌
Lens
Technology
Co
Ltd
73,900‌
295‌
Pidilite
Industries
Ltd
18,081‌
328‌
Sunny
Optical
Technology
Group
Co
Ltd
24,800‌
399‌
$
1,417‌
Oil
&
Gas
-
4.15%
LUKOIL
PJSC
ADR
14,057‌
1,045‌
Petrobras
Distribuidora
SA
67,400‌
266‌
Reliance
Industries
Ltd
81,248‌
1,848‌
$
3,159‌
Pharmaceuticals
-
0.44%
Sino
Biopharmaceutical
Ltd
176,000‌
332‌
Real
Estate
-
2.04%
A-Living
Services
Co
Ltd
(e)
82,500‌
419‌
Shenzhen
Overseas
Chinese
Town
Co
Ltd
330,400‌
284‌
Shimao
Group
Holdings
Ltd
198,000‌
847‌
$
1,550‌
Retail
-
3.79%
ANTA
Sports
Products
Ltd
29,000‌
258‌
China
Meidong
Auto
Holdings
Ltd
98,000‌
242‌
Home
Product
Center
PCL
1,309,500‌
658‌
Lojas
Renner
SA
56,450‌
437‌
Magazine
Luiza
SA
25,900‌
342‌
Wal-Mart
de
Mexico
SAB
de
CV
396,800‌
949‌
$
2,886‌
Semiconductors
-
15.48%
ASPEED
Technology
Inc
7,000‌
296‌
MediaTek
Inc
46,000‌
909‌
Powertech
Technology
Inc
69,000‌
252‌
Realtek
Semiconductor
Corp
(d)
53,000‌
540‌
Samsung
Electronics
Co
Ltd
81,746‌
3,619‌
SK
Hynix
Inc
20,979‌
1,498‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
436,164‌
4,658‌
$
11,772‌
Software
-
2.08%
Bilibili
Inc
ADR
(d),(f)
9,179‌
425‌
NetEase
Inc
ADR
2,694‌
1,157‌
$
1,582‌
Telecommunications
-
0.76%
Accton
Technology
Corp
75,000‌
582‌
Transportation
-
0.58%
Hyundai
Glovis
Co
Ltd
5,205‌
442‌
TOTAL
COMMON
STOCKS
$
73,817‌
PREFERRED
STOCKS
-
0.85%
Shares
Held
Value
(000's)
Semiconductors
-
0.20%
Samsung
Electronics
Co
Ltd
1417.00%
3,931‌
$
153‌
Telecommunications
-
0.65%
Telefonica
Brasil
SA
2.68%
55,500‌
494‌
TOTAL
PREFERRED
STOCKS
$
647‌
Total
Investments
$
75,962‌
Other
Assets
and
Liabilities
-  0.13%
101‌
TOTAL
NET
ASSETS
-
100.00%
$
76,063‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$53
or
0.07%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,668
or
2.19%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Location
Percent
China
33.74‌%
Korea,
Republic
Of
12.90‌%
Taiwan
11.90‌%
India
11.33‌%
Russian
Federation
5.29‌%
Brazil
4.42‌%
Mexico
3.08‌%
Hong
Kong
2.89‌%
South
Africa
2.44‌%
Indonesia
2.31‌%
Thailand
2.03‌%
United
States
1.97‌%
Turkey
1.25‌%
Peru
1.25‌%
Argentina
1.08‌%
Malaysia
0.51‌%
Egypt
0.40‌%
Cambodia
0.34‌%
Luxembourg
0.28‌%
Poland
0.26‌%
United
Kingdom
0.20‌%
Other
Assets
and
Liabilities
0.13‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
637‌
$
14,656‌
$
13,848‌
$
1,445‌
$
637‌
$
14,656‌
$
13,848‌
$
1,445‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
4‌
$
—‌
$
—‌
$
—‌
$
4‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
133
INVESTMENT
COMPANIES
-
3.24%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.82%
Technology
Select
Sector
SPDR
Fund
24,310‌
$
2,540‌
Vanguard
Mega
Cap
Growth
ETF
(a)
11,606‌
1,898‌
$
4,438‌
Money
Market
Funds
-
2.41%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(b),(c)
2,131,639‌
2,132‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(b),(d),(e)
10,969,117‌
10,969‌
$
13,101‌
Principal
Exchange-Traded
Funds
-
0.01%
Principal
Price
Setters
Index
ETF
(d)
1,616‌
63‌
TOTAL
INVESTMENT
COMPANIES
$
17,602‌
COMMON
STOCKS
-
96.94%
Shares
Held
Value
(000's)
Advertising
-
0.01%
Trade
Desk
Inc
/The
(e)
162‌
$
66‌
Aerospace
&
Defense
-
1.19%
HEICO
Corp
144‌
14‌
HEICO
Corp
-
Class
A
251‌
20‌
L3Harris
Technologies
Inc
34,382‌
5,834‌
Lockheed
Martin
Corp
1,032‌
377‌
Mercury
Systems
Inc
(e)
177‌
14‌
Northrop
Grumman
Corp
618‌
190‌
TransDigm
Group
Inc
47‌
21‌
$
6,470‌
Agriculture
-
0.03%
Altria
Group
Inc
3,497‌
137‌
Apparel
-
0.09%
NIKE
Inc
5,038‌
494‌
VF
Corp
76‌
5‌
$
499‌
Automobile
Manufacturers
-
0.12%
Tesla
Inc
(e)
615‌
664‌
Automobile
Parts
&
Equipment
-
0.45%
Allison
Transmission
Holdings
Inc
293‌
11‌
Aptiv
PLC
31,152‌
2,427‌
$
2,438‌
Banks
-
0.23%
Goldman
Sachs
Group
Inc
/The
6,200‌
1,225‌
Beverages
-
1.36%
Boston
Beer
Co
Inc
/The
(e)
34‌
18‌
Brown-Forman
Corp
-
A
Shares
154‌
9‌
Brown-Forman
Corp
-
B
Shares
98,278‌
6,256‌
Coca-Cola
Co/The
9,787‌
437‌
Monster
Beverage
Corp
(e)
1,479‌
103‌
PepsiCo
Inc
4,394‌
581‌
$
7,404‌
Biotechnology
-
2.63%
ACADIA
Pharmaceuticals
Inc
(e)
438‌
21‌
Acceleron
Pharma
Inc
(e)
172‌
16‌
Alexion
Pharmaceuticals
Inc
(e)
4,537‌
509‌
Alnylam
Pharmaceuticals
Inc
(e)
457‌
68‌
Amgen
Inc
2,538‌
599‌
Biogen
Inc
(e)
198‌
53‌
BioMarin
Pharmaceutical
Inc
(e)
656‌
81‌
Bluebird
Bio
Inc
(e)
115‌
7‌
Exact
Sciences
Corp
(e)
517‌
45‌
Exelixis
Inc
(e)
442‌
10‌
Guardant
Health
Inc
(e)
297‌
24‌
Illumina
Inc
(e)
18,524‌
6,860‌
Immunomedics
Inc
(e)
824‌
29‌
Incyte
Corp
(e)
14,963‌
1,556‌
Ionis
Pharmaceuticals
Inc
(e)
258‌
15‌
Iovance
Biotherapeutics
Inc
(e)
541‌
15‌
Livongo
Health
Inc
(a),(e)
215‌
16‌
Moderna
Inc
(e)
1,075‌
69‌
Regeneron
Pharmaceuticals
Inc
(e)
402‌
251‌
Sage
Therapeutics
Inc
(e)
15‌
1‌
Seattle
Genetics
Inc
(e)
486‌
83‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Biotechnology
(continued)
Vertex
Pharmaceuticals
Inc
(e)
13,583‌
$
3,943‌
$
14,271‌
Building
Materials
-
0.01%
Armstrong
World
Industries
Inc
71‌
5‌
Carrier
Global
Corp
1,248‌
28‌
Trex
Co
Inc
(e)
231‌
30‌
$
63‌
Chemicals
-
1.53%
Air
Products
and
Chemicals
Inc
113‌
27‌
Ecolab
Inc
200‌
40‌
FMC
Corp
102‌
10‌
NewMarket
Corp
23‌
9‌
RPM
International
Inc
427‌
32‌
Sherwin-Williams
Co/The
14,121‌
8,160‌
W
R
Grace
&
Co
81‌
4‌
$
8,282‌
Commercial
Services
-
6.54%
2U
Inc
(e)
79‌
3‌
Automatic
Data
Processing
Inc
1,381‌
206‌
Avalara
Inc
(e)
307‌
41‌
Booz
Allen
Hamilton
Holding
Corp
551‌
43‌
Bright
Horizons
Family
Solutions
Inc
(e)
161‌
19‌
Chegg
Inc
(e)
484‌
33‌
Cintas
Corp
27,014‌
7,195‌
CoreLogic
Inc
/United
States
17‌
1‌
CoStar
Group
Inc
(e)
2,673‌
1,899‌
Equifax
Inc
360‌
62‌
FleetCor
Technologies
Inc
(e)
331‌
83‌
Gartner
Inc
(e)
347‌
42‌
Global
Payments
Inc
39,662‌
6,728‌
H&R
Block
Inc
543‌
8‌
IHS
Markit
Ltd
867‌
65‌
MarketAxess
Holdings
Inc
147‌
74‌
Moody's
Corp
677‌
186‌
Morningstar
Inc
73‌
10‌
Paylocity
Holding
Corp
(e)
139‌
20‌
PayPal
Holdings
Inc
(e)
94,900‌
16,535‌
Quanta
Services
Inc
111‌
4‌
Rollins
Inc
518‌
22‌
S&P
Global
Inc
5,646‌
1,860‌
Square
Inc
(e)
1,531‌
161‌
StoneCo
Ltd
(e)
620‌
24‌
TransUnion
693‌
60‌
Verisk
Analytics
Inc
683‌
116‌
WEX
Inc
(e)
15‌
3‌
$
35,503‌
Computers
-
4.28%
Accenture
PLC
-
Class
A
2,427‌
521‌
Apple
Inc
39,843‌
14,535‌
CACI
International
Inc
(e)
15‌
3‌
Crowdstrike
Holdings
Inc
(e)
8,373‌
840‌
Dell
Technologies
Inc
(e)
37‌
2‌
EPAM
Systems
Inc
(e)
213‌
54‌
Fortinet
Inc
(e)
533‌
73‌
Genpact
Ltd
195,144‌
7,127‌
Globant
SA
(e)
144‌
21‌
Leidos
Holdings
Inc
52‌
5‌
Lumentum
Holdings
Inc
(e)
32‌
3‌
NetApp
Inc
480‌
21‌
Pure
Storage
Inc
(e)
553‌
10‌
Science
Applications
International
Corp
30‌
2‌
Zscaler
Inc
(e)
282‌
31‌
$
23,248‌
Consumer
Products
-
0.03%
Avery
Dennison
Corp
137‌
15‌
Church
&
Dwight
Co
Inc
984‌
76‌
Clorox
Co/The
359‌
79‌
Reynolds
Consumer
Products
Inc
54‌
2‌
$
172‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
134
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Cosmetics
&
Personal
Care
-
1.29%
Estee
Lauder
Cos
Inc
/The
34,232‌
$
6,459‌
Procter
&
Gamble
Co/The
4,697‌
562‌
$
7,021‌
Distribution
&
Wholesale
-
0.04%
Copart
Inc
(e)
814‌
68‌
Fastenal
Co
1,860‌
80‌
IAA
Inc
(e)
129‌
5‌
Pool
Corp
156‌
42‌
WW
Grainger
Inc
132‌
41‌
$
236‌
Diversified
Financial
Services
-
4.19%
Ares
Management
Corp
392‌
16‌
Cboe
Global
Markets
Inc
96‌
9‌
Charles
Schwab
Corp/The
24,131‌
814‌
Credit
Acceptance
Corp
(a),(e)
3‌
1‌
Intercontinental
Exchange
Inc
761‌
70‌
LendingTree
Inc
(e)
30‌
9‌
LPL
Financial
Holdings
Inc
26‌
2‌
Mastercard
Inc
35,146‌
10,393‌
SLM
Corp
344‌
2‌
T
Rowe
Price
Group
Inc
231‌
29‌
Tradeweb
Markets
Inc
278‌
16‌
Virtu
Financial
Inc
223‌
5‌
Visa
Inc
57,469‌
11,101‌
Western
Union
Co/The
319‌
7‌
XP
Inc
(e)
6,711‌
282‌
$
22,756‌
Electric
-
0.66%
NextEra
Energy
Inc
10,222‌
2,455‌
NRG
Energy
Inc
338‌
11‌
Sempra
Energy
9,320‌
1,093‌
$
3,559‌
Electrical
Components
&
Equipment
-
0.01%
Energizer
Holdings
Inc
197‌
9‌
Generac
Holdings
Inc
(e)
223‌
27‌
Universal
Display
Corp
172‌
26‌
$
62‌
Electronics
-
3.93%
Agilent
Technologies
Inc
107‌
9‌
Allegion
plc
240‌
25‌
Amphenol
Corp
60,379‌
5,785‌
Coherent
Inc
(e)
79‌
10‌
Fortive
Corp
103,797‌
7,023‌
Jabil
Inc
112‌
4‌
Keysight
Technologies
Inc
(e)
252‌
25‌
Mettler
-Toledo
International
Inc
(e)
89‌
72‌
PerkinElmer
Inc
87‌
9‌
Roper
Technologies
Inc
21,582‌
8,379‌
Waters
Corp
(e)
19‌
3‌
$
21,344‌
Energy
-
Alternate
Sources
-
0.01%
Enphase
Energy
Inc
(e)
422‌
20‌
SolarEdge
Technologies
Inc
(e)
195‌
27‌
$
47‌
Engineering
&
Construction
-
0.00%
frontdoor
Inc
(e)
57‌
3‌
Entertainment
-
0.19%
DraftKings
Inc
(a),(e)
29,531‌
982‌
Live
Nation
Entertainment
Inc
(e)
567‌
25‌
Vail
Resorts
Inc
13‌
3‌
$
1,010‌
Environmental
Control
-
0.00%
Waste
Management
Inc
219‌
23‌
Food
-
0.05%
Beyond
Meat
Inc
(e)
164‌
22‌
Campbell
Soup
Co
350‌
17‌
Grocery
Outlet
Holding
Corp
(e)
148‌
6‌
Hershey
Co/The
456‌
59‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Food
(continued)
Kellogg
Co
342‌
$
23‌
Lamb
Weston
Holdings
Inc
135‌
9‌
McCormick
&
Co
Inc
/MD
278‌
50‌
Pilgrim's
Pride
Corp
(e)
67‌
1‌
Sprouts
Farmers
Market
Inc
(e)
397‌
10‌
Sysco
Corp
1,383‌
76‌
$
273‌
Hand
&
Machine
Tools
-
0.00%
Lincoln
Electric
Holdings
Inc
98‌
8‌
MSA
Safety
Inc
32‌
4‌
$
12‌
Healthcare
-
Products
-
8.03%
10X
Genomics
Inc
(e)
217‌
19‌
Abbott
Laboratories
2,862‌
262‌
ABIOMED
Inc
(e)
177‌
43‌
Adaptive
Biotechnologies
Corp
(e)
284‌
14‌
Align
Technology
Inc
(e)
313‌
86‌
Avantor
Inc
(e)
69,935‌
1,189‌
Baxter
International
Inc
854‌
73‌
Bio-
Techne
Corp
143‌
38‌
Bruker
Corp
176‌
7‌
Cooper
Cos
Inc
/The
24‌
7‌
Danaher
Corp
47,673‌
8,430‌
Edwards
Lifesciences
Corp
(e)
87,500‌
6,047‌
Haemonetics
Corp
(e)
185‌
17‌
Hill-Rom
Holdings
Inc
32‌
3‌
Hologic
Inc
(e)
718‌
41‌
ICU
Medical
Inc
(e)
22‌
4‌
IDEXX
Laboratories
Inc
(e)
362‌
119‌
Insulet
Corp
(e)
252‌
49‌
Intuitive
Surgical
Inc
(e)
22,002‌
12,537‌
Masimo
Corp
(e)
193‌
44‌
Novocure
Ltd
(e)
397‌
23‌
Penumbra
Inc
(e)
128‌
23‌
Quidel
Corp
(e)
148‌
33‌
Repligen
Corp
(e)
208‌
26‌
ResMed
Inc
616‌
118‌
STERIS
PLC
18‌
3‌
Stryker
Corp
23,270‌
4,193‌
Tandem
Diabetes
Care
Inc
(e)
208‌
21‌
Teleflex
Inc
117‌
43‌
Thermo
Fisher
Scientific
Inc
27,659‌
10,022‌
Varian
Medical
Systems
Inc
(e)
46‌
6‌
West
Pharmaceutical
Services
Inc
293‌
66‌
$
43,606‌
Healthcare
-
Services
-
2.35%
Amedisys
Inc
(e)
126‌
25‌
Anthem
Inc
5,190‌
1,365‌
Centene
Corp
(e)
23,953‌
1,522‌
Charles
River
Laboratories
International
Inc
(e)
173‌
30‌
Chemed
Corp
63‌
28‌
DaVita
Inc
(e)
55‌
4‌
Encompass
Health
Corp
176‌
11‌
HCA
Healthcare
Inc
22,000‌
2,135‌
Humana
Inc
5,419‌
2,102‌
IQVIA
Holdings
Inc
(e)
289‌
41‌
Laboratory
Corp
of
America
Holdings
(e)
22‌
4‌
Molina
Healthcare
Inc
(e)
159‌
28‌
PPD
Inc
(e)
210‌
6‌
Syneos
Health
Inc
(e)
27‌
2‌
Teladoc
Health
Inc
(e)
267‌
51‌
UnitedHealth
Group
Inc
18,424‌
5,434‌
$
12,788‌
Home
Builders
-
0.00%
NVR
Inc
(e)
1‌
3‌
Home
Furnishings
-
0.00%
Dolby
Laboratories
Inc
31‌
2‌
Tempur
Sealy
International
Inc
(e)
140‌
10‌
$
12‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
135
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Housewares
-
0.01%
Scotts
Miracle-
Gro
Co/The
151‌
$
20‌
Toro
Co/The
386‌
26‌
$
46‌
Insurance
-
0.08%
Alleghany
Corp
5‌
3‌
Aon
PLC
919‌
177‌
Axis
Capital
Holdings
Ltd
29‌
1‌
Brown
&
Brown
Inc
50‌
2‌
Erie
Indemnity
Co
58‌
11‌
Lincoln
National
Corp
95‌
4‌
Marsh
&
McLennan
Cos
Inc
1,576‌
169‌
Primerica
Inc
100‌
12‌
Progressive
Corp/The
676‌
54‌
RenaissanceRe
Holdings
Ltd
66‌
11‌
$
444‌
Internet
-
21.70%
Alibaba
Group
Holding
Ltd
ADR
(e)
40,139‌
8,658‌
Alphabet
Inc
-
A
Shares
(e)
9,868‌
13,993‌
Alphabet
Inc
-
C
Shares
(e)
11,321‌
16,004‌
Amazon.com
Inc
(e)
14,406‌
39,744‌
Anaplan
Inc
(e)
521‌
24‌
Booking
Holdings
Inc
(e)
1,494‌
2,379‌
CDW
Corp/DE
569‌
66‌
eBay
Inc
2,630‌
138‌
Etsy
Inc
(e)
472‌
50‌
Expedia
Group
Inc
61‌
5‌
Facebook
Inc
(e)
66,414‌
15,081‌
FireEye
Inc
(e)
199‌
2‌
GoDaddy
Inc
(e)
663‌
49‌
Grubhub
Inc
(e)
34‌
2‌
Match
Group
Inc
(e)
8,410‌
2,720‌
Match
Group
Inc
(a),(e)
222‌
24‌
Netflix
Inc
(e)
13,016‌
5,923‌
NortonLifeLock
Inc
2,232‌
44‌
Okta
Inc
(e)
495‌
99‌
Palo
Alto
Networks
Inc
(e)
391‌
90‌
Pinterest
Inc
(e)
1,334‌
30‌
Proofpoint
Inc
(e)
227‌
25‌
Roku
Inc
(e)
407‌
47‌
Snap
Inc
Class
A
(e)
114,491‌
2,689‌
Spotify
Technology
SA
(e)
17,048‌
4,401‌
Tencent
Holdings
Ltd
ADR
74,961‌
4,798‌
Uber
Technologies
Inc
(e)
4,204‌
131‌
VeriSign
Inc
(e)
243‌
50‌
Wayfair
Inc
(e)
239‌
47‌
Wix.com
Ltd
(e)
2,054‌
526‌
Zendesk
Inc
(e)
452‌
40‌
Zillow
Group
Inc
-
A
Shares
(e)
25‌
2‌
Zillow
Group
Inc
-
C
Shares
(e)
59‌
3‌
$
117,884‌
Leisure
Products
&
Services
-
0.00%
Peloton
Interactive
Inc
(e)
95‌
6‌
Planet
Fitness
Inc
(e)
182‌
11‌
Polaris
Inc
25‌
2‌
Virgin
Galactic
Holdings
Inc
(a),(e)
206‌
3‌
$
22‌
Lodging
-
0.27%
Hilton
Worldwide
Holdings
Inc
15,739‌
1,156‌
Las
Vegas
Sands
Corp
568‌
26‌
Wynn
Resorts
Ltd
3,738‌
278‌
$
1,460‌
Machinery
-
Construction
&
Mining
-
0.01%
BWX
Technologies
Inc
244‌
14‌
Vertiv
Holdings
Co
(e)
797‌
11‌
$
25‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Machinery
-
Diversified
-
0.28%
Cognex
Corp
659‌
$
39‌
Graco
Inc
331‌
16‌
Ingersoll
Rand
Inc
(e)
48,511‌
1,364‌
Nordson
Corp
188‌
36‌
Rockwell
Automation
Inc
226‌
48‌
$
1,503‌
Media
-
0.08%
Altice
USA
Inc
(e)
1,295‌
29‌
Cable
One
Inc
20‌
35‌
Charter
Communications
Inc
(e)
559‌
285‌
FactSet
Research
Systems
Inc
148‌
49‌
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(e)
38‌
1‌
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(e)
80‌
3‌
Nexstar
Media
Group
Inc
117‌
10‌
Sirius
XM
Holdings
Inc
2,840‌
17‌
World
Wrestling
Entertainment
Inc
184‌
8‌
$
437‌
Mining
-
0.00%
Royal
Gold
Inc
187‌
23‌
Miscellaneous
Manufacturers
-
0.07%
3M
Co
1,600‌
250‌
Axon
Enterprise
Inc
(e)
247‌
24‌
Donaldson
Co
Inc
53‌
2‌
Illinois
Tool
Works
Inc
559‌
98‌
$
374‌
Office
&
Business
Equipment
-
0.01%
Zebra
Technologies
Corp
(e)
193‌
49‌
Oil
&
Gas
-
0.13%
Concho
Resources
Inc
13,230‌
681‌
Packaging
&
Containers
-
0.02%
Amcor
PLC
963‌
10‌
Ball
Corp
1,196‌
83‌
Berry
Global
Group
Inc
(e)
181‌
8‌
Crown
Holdings
Inc
(e)
54‌
4‌
Graphic
Packaging
Holding
Co
242‌
3‌
$
108‌
Pharmaceuticals
-
5.22%
AbbVie
Inc
7,141‌
701‌
Agios
Pharmaceuticals
Inc
(e)
23‌
1‌
AmerisourceBergen
Corp
280‌
28‌
Becton
Dickinson
and
Co
8,278‌
1,981‌
Bristol-Myers
Squibb
Co
3,297‌
194‌
Cardinal
Health
Inc
1,170‌
61‌
Cigna
Corp
26,983‌
5,064‌
DexCom
Inc
(e)
21,687‌
8,792‌
Eli
Lilly
and
Co
3,632‌
596‌
Global
Blood
Therapeutics
Inc
(e)
234‌
15‌
Herbalife
Nutrition
Ltd
(e)
55‌
2‌
Horizon
Therapeutics
Plc
(e)
681‌
38‌
Johnson
&
Johnson
1,524‌
214‌
McKesson
Corp
481‌
74‌
Merck
&
Co
Inc
9,523‌
736‌
Neurocrine
Biosciences
Inc
(e)
368‌
45‌
PRA
Health
Sciences
Inc
(e)
215‌
21‌
Reata
Pharmaceuticals
Inc
(e)
84‌
13‌
Sarepta
Therapeutics
Inc
(e)
298‌
48‌
Zoetis
Inc
71,003‌
9,730‌
$
28,354‌
Pipelines
-
0.01%
Cheniere
Energy
Inc
(e)
925‌
45‌
Equitrans
Midstream
Corp
(a)
150‌
1‌
$
46‌
Private
Equity
-
0.00%
Apollo
Global
Management
Inc
339‌
17‌
Carlyle
Group
Inc
/The
(a)
43‌
1‌
$
18‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
136
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
-
1.99%
American
Tower
Corp
1,837‌
$
475‌
Americold
Realty
Trust
80‌
3‌
Brookfield
Property
REIT
Inc
206‌
2‌
CoreSite
Realty
Corp
108‌
13‌
Crown
Castle
International
Corp
1,609‌
269‌
Equinix
Inc
367‌
258‌
Equity
LifeStyle
Properties
Inc
286‌
18‌
Extra
Space
Storage
Inc
356‌
33‌
Iron
Mountain
Inc
670‌
17‌
Public
Storage
395‌
76‌
SBA
Communications
Corp
32,229‌
9,601‌
Simon
Property
Group
Inc
959‌
66‌
$
10,831‌
Retail
-
5.35%
AutoZone
Inc
(e)
56‌
63‌
Best
Buy
Co
Inc
166‌
15‌
Burlington
Stores
Inc
(e)
233‌
46‌
CarMax
Inc
(e)
11,159‌
999‌
Carvana
Co
(a),(e)
25,716‌
3,091‌
Chipotle
Mexican
Grill
Inc
(e)
1,321‌
1,390‌
Costco
Wholesale
Corp
20,534‌
6,226‌
Dollar
General
Corp
19,595‌
3,733‌
Dollar
Tree
Inc
(e)
449‌
42‌
Domino's
Pizza
Inc
157‌
58‌
Dunkin'
Brands
Group
Inc
280‌
18‌
Five
Below
Inc
(e)
218‌
23‌
Floor
&
Decor
Holdings
Inc
(e)
325‌
19‌
Home
Depot
Inc
/The
2,153‌
539‌
Lowe's
Cos
Inc
3,144‌
425‌
Lululemon
Athletica
Inc
(e)
27,858‌
8,692‌
McDonald's
Corp
347‌
64‌
Ollie's
Bargain
Outlet
Holdings
Inc
(e)
188‌
18‌
O'Reilly
Automotive
Inc
(e)
294‌
124‌
Ross
Stores
Inc
34,536‌
2,944‌
Starbucks
Corp
2,705‌
199‌
TJX
Cos
Inc
/The
3,892‌
197‌
Tractor
Supply
Co
463‌
61‌
Ulta
Beauty
Inc
(e)
201‌
41‌
Wendy's
Co/The
718‌
16‌
Williams-Sonoma
Inc
51‌
4‌
Yum
China
Holdings
Inc
101‌
5‌
Yum!
Brands
Inc
91‌
8‌
$
29,060‌
Semiconductors
-
2.55%
Advanced
Micro
Devices
Inc
(e)
28,837‌
1,518‌
Analog
Devices
Inc
5‌
1‌
Applied
Materials
Inc
3,484‌
211‌
ASML
Holding
NV
-
NY
Reg
Shares
8,621‌
3,173‌
Broadcom
Inc
1,398‌
441‌
Entegris
Inc
502‌
30‌
Inphi
Corp
(e)
191‌
22‌
IPG
Photonics
Corp
(e)
9‌
1‌
KLA
Corp
622‌
121‌
Lam
Research
Corp
551‌
178‌
Marvell
Technology
Group
Ltd
36,004‌
1,262‌
Maxim
Integrated
Products
Inc
353‌
21‌
Microchip
Technology
Inc
705‌
74‌
MKS
Instruments
Inc
164‌
19‌
Monolithic
Power
Systems
Inc
173‌
41‌
NVIDIA
Corp
2,240‌
851‌
NXP
Semiconductors
NV
45,216‌
5,156‌
QUALCOMM
Inc
4,514‌
412‌
Teradyne
Inc
663‌
56‌
Texas
Instruments
Inc
1,499‌
190‌
Xilinx
Inc
979‌
96‌
$
13,874‌
Shipbuilding
-
0.00%
Huntington
Ingalls
Industries
Inc
15‌
3‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
-
19.52%
Activision
Blizzard
Inc
1,209‌
$
92‌
Adobe
Inc
(e)
15,051‌
6,552‌
Akamai
Technologies
Inc
(e)
528‌
57‌
Alteryx
Inc
(e)
210‌
34‌
ANSYS
Inc
(e)
343‌
100‌
Aspen
Technology
Inc
(e)
253‌
26‌
Atlassian
Corp
PLC
(e)
501‌
90‌
Autodesk
Inc
(e)
38,722‌
9,262‌
Bill.com
Holdings
Inc
(e)
64‌
6‌
Black
Knight
Inc
(e)
579‌
42‌
Broadridge
Financial
Solutions
Inc
459‌
58‌
Cadence
Design
Systems
Inc
(e)
1,104‌
106‌
CDK
Global
Inc
63‌
3‌
Ceridian
HCM
Holding
Inc
(e)
299‌
24‌
Cerner
Corp
1,219‌
84‌
Change
Healthcare
Inc
(e)
714‌
8‌
Citrix
Systems
Inc
135‌
20‌
Cloudflare
Inc
(e)
436‌
16‌
Coupa
Software
Inc
(e)
267‌
74‌
Datadog
Inc
(e)
610‌
53‌
DocuSign
Inc
(e)
758‌
131‌
Dropbox
Inc
-
A
Shares
(e)
983‌
21‌
Dynatrace
Inc
(e)
608‌
25‌
Elastic
NV
(e)
218‌
20‌
Electronic
Arts
Inc
(e)
76,274‌
10,072‌
Everbridge
Inc
(e)
136‌
19‌
Fair
Isaac
Corp
(e)
112‌
47‌
Fastly
Inc
(e)
291‌
25‌
Fidelity
National
Information
Services
Inc
16,859‌
2,261‌
Fiserv
Inc
(e)
420‌
41‌
Five9
Inc
(e)
246‌
27‌
Guidewire
Software
Inc
(e)
63‌
7‌
HubSpot
Inc
(e)
166‌
37‌
Intuit
Inc
47,796‌
14,156‌
Jack
Henry
&
Associates
Inc
240‌
44‌
Manhattan
Associates
Inc
(e)
226‌
21‌
Medallia
Inc
(e)
328‌
8‌
Microsoft
Corp
188,305‌
38,322‌
MongoDB
Inc
(e)
3,727‌
844‌
MSCI
Inc
356‌
119‌
New
Relic
Inc
(e)
201‌
14‌
Nutanix
Inc
(e)
713‌
17‌
Oracle
Corp
6,718‌
371‌
Paychex
Inc
1,016‌
77‌
Paycom
Software
Inc
(e)
198‌
61‌
Pegasystems
Inc
142‌
14‌
Pluralsight
Inc
(e)
375‌
7‌
PTC
Inc
(e)
418‌
32‌
RealPage
Inc
(e)
308‌
20‌
RingCentral
Inc
(e)
307‌
87‌
salesforce.com
Inc
(e)
63,393‌
11,876‌
ServiceNow
Inc
(e)
7,626‌
3,089‌
Slack
Technologies
Inc
(e)
27,480‌
855‌
Smartsheet
Inc
(e)
442‌
22‌
Snowflake
Inc
-
Class
B
(e),(f),(g)
522‌
20‌
Splunk
Inc
(e)
17,710‌
3,519‌
SS&C
Technologies
Holdings
Inc
188‌
11‌
Stripe
Inc
-
Class
B
(e),(f),(g),(h)
5,754‌
90‌
Synopsys
Inc
(e)
8,246‌
1,608‌
Take-Two
Interactive
Software
Inc
(e)
416‌
58‌
Teradata
Corp
(e)
338‌
7‌
Twilio
Inc
(e)
460‌
101‌
Tyler
Technologies
Inc
(e)
157‌
54‌
Veeva
Systems
Inc
(e)
575‌
135‌
VMware
Inc
(a),(e)
317‌
49‌
Workday
Inc
(e)
3,588‌
672‌
Zoom
Video
Communications
Inc
(a),(e)
719‌
182‌
Zynga
Inc
(e)
2,922‌
28‌
$
106,030‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
137
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Telecommunications
-
0.01%
Arista
Networks
Inc
(e)
194‌
$
41‌
CommScope
Holding
Co
Inc
(e)
47‌
1‌
LogMeIn
Inc
16‌
1‌
Motorola
Solutions
Inc
14‌
2‌
PagerDuty
Inc
(e)
273‌
8‌
Switch
Inc
354‌
6‌
T-Mobile
US
Inc
-
Rights
(e)
652‌
—‌
Ubiquiti
Inc
29‌
5‌
$
64‌
Toys,
Games
&
Hobbies
-
0.00%
Mattel
Inc
(e)
818‌
8‌
Transportation
-
0.38%
CH
Robinson
Worldwide
Inc
84‌
7‌
Expeditors
International
of
Washington
Inc
408‌
31‌
JB
Hunt
Transport
Services
Inc
4,749‌
571‌
Landstar
System
Inc
125‌
14‌
Norfolk
Southern
Corp
5,313‌
933‌
Old
Dominion
Freight
Line
Inc
337‌
57‌
Union
Pacific
Corp
1,389‌
235‌
United
Parcel
Service
Inc
1,867‌
208‌
XPO
Logistics
Inc
(e)
19‌
1‌
$
2,057‌
TOTAL
COMMON
STOCKS
$
526,598‌
CONVERTIBLE
PREFERRED
STOCKS
-
0.10%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.04%
Waymo
LLC
Series
A-2
0.00%
(e),(f),(g)
2,489‌
$
214‌
Internet
-
0.06%
Airbnb
Inc
-
Series
D
0.00%
(e),(f),(g),(h)
3,936‌
257‌
Airbnb
Inc
-
Series
E
0.00%
(e),(f),(g),(h)
1,119‌
73‌
$
330‌
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
544‌
PREFERRED
STOCKS
-
0.20%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.12%
Rivian
Automotive
Series
D
0.00%
(e),(f),(g),(h)
61,168‌
657‌
Internet
-
0.02%
Doordash
0.00%
(e),(f),(g)
377‌
$
87‌
Software
-
0.04%
Magic
Leap
Inc
-
Series
C
0.00%
(e),(f),(g),(h)
5,653‌
26‌
Magic
Leap
Inc
-
Series
D
0.00%
(e),(f),(g),(h)
1,903‌
11‌
UIPATH
Inc
Series
D-1
0.00%
(e),(f),(g),(h)
4,548‌
179‌
UIPATH
Inc
Series
D-2
0.00%
(e),(f),(g),(h)
764‌
30‌
$
246‌
Telecommunications
-
0.02%
Aurora
Innovation
0.00%
(e),(f),(g),(h)
12,920‌
119‌
TOTAL
PREFERRED
STOCKS
$
1,109‌
Total
Investments
$
545,853‌
Other
Assets
and
Liabilities
-  (0.48)%
(2,600‌)
TOTAL
NET
ASSETS
-
100.00%
$
543,253‌
(a)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,132
or
0.39%
of
net
assets.
(d)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(e)
Non-income
producing
security
(f)
Restricted
Security.
Please
see
Restricted
Security
sub-schedule
for
additional
information.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$1,763
or
0.32%
of
net
assets.
(h)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
Portfolio
Summary  (unaudited)
Sector
Percent
Consumer,
Non-cyclical
27.53‌%
Technology
26.40‌%
Communications
21.90‌%
Consumer,
Cyclical
6.68‌%
Financial
6.49‌%
Industrial
5.90‌%
Money
Market
Funds
2.41‌%
Basic
Materials
1.53‌%
Utilities
0.66‌%
Investment
Companies
0.47‌%
Domestic
Equity
Funds
0.36‌%
Energy
0.15‌%
Other
Assets
and
Liabilities
(0.48‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
138
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
5,083‌
$
84,037‌
$
78,151‌
$
10,969‌
Principal
Millennials
Index
ETF
199‌
—‌
199‌
—‌
Principal
Price
Setters
Index
ETF
66‌
—‌
—‌
63‌
Principal
Sustainable
Momentum
Index
ETF
21‌
—‌
20‌
—‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
166‌
—‌
156‌
—‌
$
5,535‌
$
84,037‌
$
78,52
6‌
$
11,032‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
27‌
$
—‌
$
—‌
$
—‌
Principal
Millennials
Index
ETF
—‌
37‌
—‌
(3
7‌
)
Principal
Price
Setters
Index
ETF
—‌
—‌
—‌
(3‌)
Principal
Sustainable
Momentum
Index
ETF
—‌
1‌
—‌
(2‌)
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
1‌
12‌
—‌
(22‌)
$
28‌
$
50‌
$
—‌
$
(6
4‌
)
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Airbnb
Inc
-
Series
D  
0.00%
04/16/2014
$
160‌
$
257‌
0.05%
Airbnb
Inc
-
Series
E  
0.00%
07/14/2015
104‌
73‌
0.01%
Aurora
Innovation  
0.00%
03/01/2019
119‌
119‌
0.02%
Doordash
0.00%
06/17/2020
87‌
87‌
0.02%
Magic
Leap
Inc
-
Series
C  
0.00%
01/20/2016
130‌
26‌
0.00%
Magic
Leap
Inc
-
Series
D  
0.00%
10/12/2017
5
1‌
11‌
0.00%
Rivian
Automotive
Series
D  
0.00%
12/23/2019
657‌
657‌
0.12%
Snowflake
Inc
-
Class
B
03/17/2020
20‌
20‌
0.00%
Stripe
Inc
-
Class
B
12/17/2019
90‌
90‌
0.02%
UIPATH
Inc
Series
D-1  
0.00%
04/26/2019
179‌
179‌
0.03%
UIPATH
Inc
Series
D-2  
0.00%
04/26/2019
30‌
30‌
0.01%
Waymo
LLC
Series
A-2  
0.00%
05/08/2020
214‌
214‌
0.04%
Total
$
1,763‌
0.32%
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
September
2020
Long
21‌
$
3,245‌
$
33‌
Total
$
33‌
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
139
INVESTMENT
COMPANIES
-
1.69%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.18%
iShares
Core
S&P
500
ETF
15,016‌
$
4,65
1‌
Money
Market
Funds
-
1.51%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
2,866,034‌
2,86
6‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
35,799,465‌
35,799‌
$
38,66
5‌
TOTAL
INVESTMENT
COMPANIES
$
43,316‌
COMMON
STOCKS
-
98.61%
Shares
Held
Value
(000's)
Advertising
-
0.07%
Interpublic
Group
of
Cos
Inc
/The
38,388‌
$
659‌
Omnicom
Group
Inc
21,114‌
1,153‌
$
1,812‌
Aerospace
&
Defense
-
1.68%
Boeing
Co/The
52,823‌
9,683‌
General
Dynamics
Corp
22,895‌
3,422‌
Howmet
Aerospace
Inc
37,815‌
599‌
L3Harris
Technologies
Inc
21,270‌
3,609‌
Lockheed
Martin
Corp
24,316‌
8,873‌
Northrop
Grumman
Corp
15,277‌
4,697‌
Raytheon
Technologies
Corp
144,918‌
8,930‌
Teledyne
Technologies
Inc
(d)
3,612‌
1,123‌
TransDigm
Group
Inc
4,955‌
2,190‌
$
43,126‌
Agriculture
-
0.79%
Altria
Group
Inc
183,109‌
7,187‌
Archer-Daniels-Midland
Co
54,733‌
2,184‌
Philip
Morris
International
Inc
153,427‌
10,749‌
$
20,120‌
Airlines
-
0.21%
Alaska
Air
Group
Inc
12,077‌
438‌
American
Airlines
Group
Inc
(e)
48,966‌
640‌
Delta
Air
Lines
Inc
55,935‌
1,569‌
Southwest
Airlines
Co
52,846‌
1,806‌
United
Airlines
Holdings
Inc
(d)
24,896‌
862‌
$
5,315‌
Apparel
-
0.61%
Hanesbrands
Inc
34,293‌
387‌
NIKE
Inc
122,181‌
11,980‌
PVH
Corp
6,990‌
336‌
Ralph
Lauren
Corp
4,707‌
341‌
Tapestry
Inc
27,204‌
361‌
Under
Armour
Inc
-
Class
A
(d)
18,568‌
181‌
Under
Armour
Inc
-
Class
C
(d)
19,362‌
171‌
VF
Corp
31,419‌
1,915‌
$
15,672‌
Automobile
Manufacturers
-
0.41%
Cummins
Inc
14,536‌
2,519‌
Ford
Motor
Co
384,887‌
2,340‌
General
Motors
Co
124,086‌
3,139‌
PACCAR
Inc
34,064‌
2,550‌
$
10,548‌
Automobile
Parts
&
Equipment
-
0.10%
Aptiv
PLC
25,113‌
1,957‌
BorgWarner
Inc
20,426‌
721‌
$
2,678‌
Banks
-
4.30%
Bank
of
America
Corp
769,350‌
18,272‌
Bank
of
New
York
Mellon
Corp/The
79,394‌
3,069‌
Citigroup
Inc
205,127‌
10,482‌
Citizens
Financial
Group
Inc
42,037‌
1,061‌
Comerica
Inc
13,700‌
522‌
Fifth
Third
Bancorp
70,146‌
1,352‌
First
Republic
Bank/CA
16,894‌
1,791‌
Goldman
Sachs
Group
Inc
/The
30,496‌
6,027‌
Huntington
Bancshares
Inc
/OH
99,934‌
903‌
JPMorgan
Chase
&
Co
300,232‌
28,240‌
KeyCorp
96,110‌
1,171‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
M&T
Bank
Corp
12,639‌
$
1,314‌
Morgan
Stanley
117,992‌
5,699‌
Northern
Trust
Corp
20,500‌
1,626‌
PNC
Financial
Services
Group
Inc
/The
41,803‌
4,398‌
Regions
Financial
Corp
94,296‌
1,048‌
State
Street
Corp
34,680‌
2,204‌
SVB
Financial
Group
(d)
5,075‌
1,094‌
Truist
Financial
Corp
132,768‌
4,985‌
US
Bancorp
135,062‌
4,973‌
Wells
Fargo
&
Co
367,627‌
9,411‌
Zions
Bancorp
NA
16,147‌
549‌
$
110,191‌
Beverages
-
1.65%
Brown-Forman
Corp
-
B
Shares
17,968‌
1,144‌
Coca-Cola
Co/The
380,868‌
17,017‌
Constellation
Brands
Inc
16,548‌
2,895‌
Molson
Coors
Beverage
Co
18,529‌
637‌
Monster
Beverage
Corp
(d)
36,837‌
2,553‌
PepsiCo
Inc
136,713‌
18,082‌
$
42,328‌
Biotechnology
-
2.10%
Alexion
Pharmaceuticals
Inc
(d)
21,758‌
2,442‌
Amgen
Inc
57,962‌
13,671‌
Biogen
Inc
(d)
16,080‌
4,302‌
Bio-Rad
Laboratories
Inc
(d)
2,106‌
951‌
Corteva
Inc
73,738‌
1,975‌
Gilead
Sciences
Inc
123,561‌
9,507‌
Illumina
Inc
(d)
14,484‌
5,364‌
Incyte
Corp
(d)
17,776‌
1,848‌
Regeneron
Pharmaceuticals
Inc
(d)
9,938‌
6,198‌
Vertex
Pharmaceuticals
Inc
(d)
25,547‌
7,417‌
$
53,675‌
Building
Materials
-
0.36%
Carrier
Global
Corp
80,223‌
1,782‌
Fortune
Brands
Home
&
Security
Inc
13,764‌
880‌
Johnson
Controls
International
plc
73,296‌
2,502‌
Martin
Marietta
Materials
Inc
6,132‌
1,267‌
Masco
Corp
25,990‌
1,305‌
Vulcan
Materials
Co
13,048‌
1,512‌
$
9,248‌
Chemicals
-
1.68%
Air
Products
and
Chemicals
Inc
21,762‌
5,255‌
Albemarle
Corp
10,474‌
809‌
Celanese
Corp
11,650‌
1,006‌
CF
Industries
Holdings
Inc
21,067‌
593‌
Dow
Inc
72,985‌
2,975‌
DuPont
de
Nemours
Inc
72,303‌
3,841‌
Eastman
Chemical
Co
13,389‌
932‌
Ecolab
Inc
24,366‌
4,848‌
FMC
Corp
12,753‌
1,270‌
International
Flavors
&
Fragrances
Inc
(e)
10,527‌
1,289‌
Linde
PLC
51,748‌
10,976‌
LyondellBasell
Industries
NV
25,317‌
1,664‌
Mosaic
Co/The
34,357‌
430‌
PPG
Industries
Inc
23,245‌
2,465‌
Sherwin-Williams
Co/The
7,964‌
4,602‌
$
42,955‌
Commercial
Services
-
2.43%
Automatic
Data
Processing
Inc
42,346‌
6,305‌
Cintas
Corp
8,304‌
2,212‌
Equifax
Inc
11,960‌
2,056‌
FleetCor
Technologies
Inc
(d)
8,258‌
2,077‌
Gartner
Inc
(d)
8,786‌
1,066‌
Global
Payments
Inc
29,471‌
4,999‌
H&R
Block
Inc
18,966‌
271‌
IHS
Markit
Ltd
39,305‌
2,967‌
MarketAxess
Holdings
Inc
3,735‌
1,871‌
Moody's
Corp
15,890‌
4,365‌
Nielsen
Holdings
PLC
35,123‌
522‌
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
140
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
PayPal
Holdings
Inc
(d)
115,692‌
$
20,157‌
Quanta
Services
Inc
13,563‌
532‌
Robert
Half
International
Inc
11,292‌
596‌
Rollins
Inc
13,886‌
589‌
S&P
Global
Inc
23,737‌
7,821‌
United
Rentals
Inc
(d)
7,100‌
1,058‌
Verisk
Analytics
Inc
15,987‌
2,721‌
$
62,185‌
Computers
-
7.18%
Accenture
PLC
-
Class
A
62,767‌
13,477‌
Apple
Inc
401,452‌
146,450‌
Cognizant
Technology
Solutions
Corp
53,266‌
3,027‌
DXC
Technology
Co
25,004‌
412‌
Fortinet
Inc
(d)
13,220‌
1,815‌
Hewlett
Packard
Enterprise
Co
126,591‌
1,232‌
HP
Inc
140,899‌
2,456‌
International
Business
Machines
Corp
87,485‌
10,565‌
Leidos
Holdings
Inc
13,156‌
1,232‌
NetApp
Inc
21,794‌
967‌
Seagate
Technology
PLC
22,253‌
1,077‌
Western
Digital
Corp
29,529‌
1,304‌
$
184,014‌
Consumer
Products
-
0.40%
Avery
Dennison
Corp
8,206‌
936‌
Church
&
Dwight
Co
Inc
24,227‌
1,873‌
Clorox
Co/The
12,326‌
2,704‌
Kimberly-Clark
Corp
33,554‌
4,743‌
$
10,256‌
Cosmetics
&
Personal
Care
-
1.55%
Colgate-Palmolive
Co
84,395‌
6,183‌
Coty
Inc
29,323‌
131‌
Estee
Lauder
Cos
Inc
/The
22,145‌
4,178‌
Procter
&
Gamble
Co/The
(f)
243,933‌
29,167‌
$
39,659‌
Distribution
&
Wholesale
-
0.24%
Copart
Inc
(d)
20,356‌
1,695‌
Fastenal
Co
56,441‌
2,418‌
LKQ
Corp
(d)
29,952‌
785‌
WW
Grainger
Inc
4,269‌
1,341‌
$
6,239‌
Diversified
Financial
Services
-
3.98%
American
Express
Co
65,040‌
6,192‌
Ameriprise
Financial
Inc
12,054‌
1,809‌
BlackRock
Inc
15,200‌
8,270‌
Capital
One
Financial
Corp
44,864‌
2,808‌
Cboe
Global
Markets
Inc
10,811‌
1,008‌
Charles
Schwab
Corp/The
112,898‌
3,809‌
CME
Group
Inc
35,331‌
5,743‌
Discover
Financial
Services
30,182‌
1,512‌
Franklin
Resources
Inc
27,329‌
573‌
Intercontinental
Exchange
Inc
53,920‌
4,939‌
Invesco
Ltd
37,076‌
399‌
Mastercard
Inc
87,084‌
25,751‌
Nasdaq
Inc
11,315‌
1,352‌
Raymond
James
Financial
Inc
12,017‌
827‌
Synchrony
Financial
52,914‌
1,172‌
T
Rowe
Price
Group
Inc
22,421‌
2,769‌
Visa
Inc
166,236‌
32,112‌
Western
Union
Co/The
40,488‌
875‌
$
101,920‌
Electric
-
2.85%
AES
Corp/The
65,514‌
949‌
Alliant
Energy
Corp
24,584‌
1,176‌
Ameren
Corp
24,326‌
1,712‌
American
Electric
Power
Co
Inc
48,830‌
3,889‌
CenterPoint
Energy
Inc
53,669‌
1,002‌
CMS
Energy
Corp
28,201‌
1,648‌
Consolidated
Edison
Inc
32,918‌
2,368‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
82,692‌
$
6,713‌
DTE
Energy
Co
18,978‌
2,040‌
Duke
Energy
Corp
72,406‌
5,785‌
Edison
International
37,239‌
2,022‌
Entergy
Corp
19,721‌
1,850‌
Evergy
Inc
22,340‌
1,325‌
Eversource
Energy
33,149‌
2,760‌
Exelon
Corp
96,010‌
3,484‌
FirstEnergy
Corp
53,379‌
2,070‌
NextEra
Energy
Inc
48,227‌
11,583‌
NRG
Energy
Inc
24,051‌
783‌
Pinnacle
West
Capital
Corp
11,083‌
812‌
PPL
Corp
75,748‌
1,957‌
Public
Service
Enterprise
Group
Inc
49,819‌
2,449‌
Sempra
Energy
28,823‌
3,379‌
Southern
Co/The
104,045‌
5,395‌
WEC
Energy
Group
Inc
31,080‌
2,724‌
Xcel
Energy
Inc
51,731‌
3,233‌
$
73,108‌
Electrical
Components
&
Equipment
-
0.22%
AMETEK
Inc
22,606‌
2,020‌
Emerson
Electric
Co
58,871‌
3,652‌
$
5,672‌
Electronics
-
1.28%
Agilent
Technologies
Inc
30,423‌
2,689‌
Allegion
plc
9,087‌
929‌
Amphenol
Corp
29,154‌
2,793‌
FLIR
Systems
Inc
12,892‌
523‌
Fortive
Corp
29,207‌
1,976‌
Garmin
Ltd
14,303‌
1,395‌
Honeywell
International
Inc
69,156‌
9,999‌
Keysight
Technologies
Inc
(d)
18,429‌
1,857‌
Mettler
-Toledo
International
Inc
(d)
2,357‌
1,899‌
PerkinElmer
Inc
10,974‌
1,076‌
Roper
Technologies
Inc
10,287‌
3,994‌
TE
Connectivity
Ltd
32,501‌
2,651‌
Waters
Corp
(d)
6,100‌
1,100‌
$
32,881‌
Engineering
&
Construction
-
0.04%
Jacobs
Engineering
Group
Inc
12,819‌
1,087‌
Entertainment
-
0.02%
Live
Nation
Entertainment
Inc
(d)
13,998‌
621‌
Environmental
Control
-
0.25%
Pentair
PLC
16,330‌
620‌
Republic
Services
Inc
20,699‌
1,698‌
Waste
Management
Inc
38,255‌
4,052‌
$
6,370‌
Food
-
1.23%
Campbell
Soup
Co
16,672‌
827‌
Conagra
Brands
Inc
47,991‌
1,688‌
General
Mills
Inc
59,724‌
3,682‌
Hershey
Co/The
14,523‌
1,882‌
Hormel
Foods
Corp
27,613‌
1,333‌
J
M
Smucker
Co/The
11,236‌
1,189‌
Kellogg
Co
24,647‌
1,628‌
Kraft
Heinz
Co/The
61,398‌
1,958‌
Kroger
Co/The
77,466‌
2,622‌
Lamb
Weston
Holdings
Inc
14,388‌
920‌
McCormick
&
Co
Inc
/MD
12,182‌
2,186‌
Mondelez
International
Inc
140,652‌
7,192‌
Sysco
Corp
50,016‌
2,734‌
Tyson
Foods
Inc
28,999‌
1,731‌
$
31,572‌
Forest
Products
&
Paper
-
0.05%
International
Paper
Co
38,726‌
1,364‌
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
141
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0.08%
Atmos
Energy
Corp
12,051‌
$
1,200‌
NiSource
Inc
37,717‌
858‌
$
2,058‌
Hand
&
Machine
Tools
-
0.11%
Snap-on
Inc
5,356‌
742‌
Stanley
Black
&
Decker
Inc
15,186‌
2,117‌
$
2,859‌
Healthcare
-
Products
-
3.91%
Abbott
Laboratories
174,287‌
15,935‌
ABIOMED
Inc
(d)
4,430‌
1,070‌
Align
Technology
Inc
(d)
7,062‌
1,938‌
Baxter
International
Inc
50,136‌
4,317‌
Boston
Scientific
Corp
(d)
140,772‌
4,943‌
Cooper
Cos
Inc
/The
4,842‌
1,373‌
Danaher
Corp
62,001‌
10,964‌
DENTSPLY
SIRONA
Inc
21,587‌
951‌
Edwards
Lifesciences
Corp
(d)
61,058‌
4,220‌
Henry
Schein
Inc
(d)
14,067‌
821‌
Hologic
Inc
(d)
25,443‌
1,450‌
IDEXX
Laboratories
Inc
(d)
8,370‌
2,764‌
Intuitive
Surgical
Inc
(d)
11,491‌
6,548‌
Medtronic
PLC
132,138‌
12,117‌
ResMed
Inc
14,253‌
2,737‌
STERIS
PLC
8,370‌
1,284‌
Stryker
Corp
31,761‌
5,723‌
Teleflex
Inc
4,574‌
1,665‌
Thermo
Fisher
Scientific
Inc
38,917‌
14,101‌
Varian
Medical
Systems
Inc
(d)
8,947‌
1,096‌
West
Pharmaceutical
Services
Inc
7,251‌
1,647‌
Zimmer
Biomet
Holdings
Inc
20,376‌
2,432‌
$
100,096‌
Healthcare
-
Services
-
2.04%
Anthem
Inc
24,842‌
6,533‌
Centene
Corp
(d)
57,064‌
3,626‌
DaVita
Inc
(d)
8,401‌
665‌
HCA
Healthcare
Inc
25,947‌
2,518‌
Humana
Inc
13,026‌
5,051‌
IQVIA
Holdings
Inc
(d)
17,499‌
2,483‌
Laboratory
Corp
of
America
Holdings
(d)
9,576‌
1,591‌
Quest
Diagnostics
Inc
13,177‌
1,501‌
UnitedHealth
Group
Inc
93,446‌
27,562‌
Universal
Health
Services
Inc
7,653‌
711‌
$
52,241‌
Home
Builders
-
0.21%
DR
Horton
Inc
32,598‌
1,808‌
Lennar
Corp
-
A
Shares
27,060‌
1,667‌
NVR
Inc
(d)
341‌
1,111‌
PulteGroup
Inc
24,837‌
845‌
$
5,431‌
Home
Furnishings
-
0.05%
Leggett
&
Platt
Inc
13,035‌
458‌
Whirlpool
Corp
6,125‌
794‌
$
1,252‌
Housewares
-
0.02%
Newell
Brands
Inc
37,607‌
597‌
Insurance
-
3.24%
Aflac
Inc
70,699‌
2,547‌
Allstate
Corp/The
30,951‌
3,002‌
American
International
Group
Inc
84,866‌
2,646‌
Aon
PLC
22,769‌
4,385‌
Arthur
J
Gallagher
&
Co
18,683‌
1,821‌
Assurant
Inc
5,877‌
607‌
Berkshire
Hathaway
Inc
-
Class
B
(d)
191,551‌
34,194‌
Chubb
Ltd
44,473‌
5,631‌
Cincinnati
Financial
Corp
14,868‌
952‌
Everest
Re
Group
Ltd
3,940‌
813‌
Globe
Life
Inc
9,649‌
716‌
Hartford
Financial
Services
Group
Inc
/The
35,283‌
1,360‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
19,040‌
$
701‌
Loews
Corp
23,849‌
818‌
Marsh
&
McLennan
Cos
Inc
50,272‌
5,398‌
MetLife
Inc
76,014‌
2,776‌
Principal
Financial
Group
Inc
25,098‌
1,043‌
Progressive
Corp/The
57,670‌
4,620‌
Prudential
Financial
Inc
38,922‌
2,370‌
Travelers
Cos
Inc
/The
24,912‌
2,841‌
Unum
Group
20,044‌
333‌
W
R
Berkley
Corp
13,912‌
797‌
Willis
Towers
Watson
PLC
12,684‌
2,498‌
$
82,869‌
Internet
-
11.32%
Alphabet
Inc
-
A
Shares
(d)
29,565‌
41,925‌
Alphabet
Inc
-
C
Shares
(d)
28,818‌
40,737‌
Amazon.com
Inc
(d)
41,283‌
113,892‌
Booking
Holdings
Inc
(d)
4,034‌
6,424‌
CDW
Corp/DE
14,022‌
1,629‌
E*TRADE
Financial
Corp
21,781‌
1,083‌
eBay
Inc
65,084‌
3,414‌
Expedia
Group
Inc
13,347‌
1,097‌
F5
Networks
Inc
(d)
6,000‌
837‌
Facebook
Inc
(d)
236,927‌
53,799‌
Netflix
Inc
(d)
43,335‌
19,719‌
NortonLifeLock
Inc
53,397‌
1,059‌
Twitter
Inc
(d)
77,310‌
2,303‌
VeriSign
Inc
(d)
10,018‌
2,072‌
$
289,990‌
Iron
&
Steel
-
0.05%
Nucor
Corp
29,673‌
1,229‌
Leisure
Products
&
Services
-
0.08%
Carnival
Corp
(e)
46,679‌
766‌
Norwegian
Cruise
Line
Holdings
Ltd
(d),(e)
25,258‌
415‌
Royal
Caribbean
Cruises
Ltd
16,917‌
851‌
$
2,032‌
Lodging
-
0.29%
Hilton
Worldwide
Holdings
Inc
27,319‌
2,007‌
Las
Vegas
Sands
Corp
33,110‌
1,508‌
Marriott
International
Inc
/MD
26,518‌
2,273‌
MGM
Resorts
International
48,599‌
817‌
Wynn
Resorts
Ltd
9,564‌
712‌
$
7,317‌
Machinery
-
Construction
&
Mining
-
0.26%
Caterpillar
Inc
53,331‌
6,746‌
Machinery
-
Diversified
-
0.61%
Deere
&
Co
30,826‌
4,844‌
Dover
Corp
14,183‌
1,370‌
Flowserve
Corp
12,821‌
366‌
IDEX
Corp
7,428‌
1,174‌
Ingersoll
Rand
Inc
(d)
34,069‌
958‌
Otis
Worldwide
Corp
40,111‌
2,281‌
Rockwell
Automation
Inc
11,412‌
2,431‌
Westinghouse
Air
Brake
Technologies
Corp
17,812‌
1,025‌
Xylem
Inc
/NY
17,726‌
1,151‌
$
15,600‌
Media
-
1.95%
Charter
Communications
Inc
(d)
14,851‌
7,575‌
Comcast
Corp
-
Class
A
448,787‌
17,494‌
Discovery
Inc
-
A
Shares
(d)
15,766‌
333‌
Discovery
Inc
-
C
Shares
(d)
31,172‌
600‌
DISH
Network
Corp
(d)
25,337‌
874‌
Fox
Corp
-
A
Shares
33,762‌
906‌
Fox
Corp
-
B
Shares
15,693‌
421‌
News
Corp
-
A
Shares
38,314‌
454‌
News
Corp
-
B
Shares
11,998‌
143‌
ViacomCBS
Inc
53,264‌
1,242‌
Walt
Disney
Co/The
177,975‌
19,846‌
$
49,888‌
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
142
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
-
0.26%
Freeport-McMoRan
Inc
143,065‌
$
1,655‌
Newmont
Corp
79,082‌
4,883‌
$
6,538‌
Miscellaneous
Manufacturers
-
1.13%
3M
Co
56,675‌
8,841‌
A
O
Smith
Corp
13,311‌
627‌
Eaton
Corp
PLC
39,414‌
3,448‌
General
Electric
Co
861,874‌
5,887‌
Illinois
Tool
Works
Inc
28,328‌
4,953‌
Parker-Hannifin
Corp
12,647‌
2,318‌
Textron
Inc
22,430‌
738‌
Trane
Technologies
PLC
23,569‌
2,097‌
$
28,909‌
Office
&
Business
Equipment
-
0.06%
Xerox
Holdings
Corp
18,044‌
276‌
Zebra
Technologies
Corp
(d)
5,233‌
1,339‌
$
1,615‌
Oil
&
Gas
-
2.32%
Apache
Corp
37,188‌
502‌
Cabot
Oil
&
Gas
Corp
39,274‌
675‌
Chevron
Corp
183,959‌
16,415‌
Concho
Resources
Inc
19,382‌
998‌
ConocoPhillips
105,670‌
4,440‌
Devon
Energy
Corp
37,709‌
428‌
Diamondback
Energy
Inc
15,550‌
650‌
EOG
Resources
Inc
57,350‌
2,905‌
Exxon
Mobil
Corp
416,617‌
18,631‌
Hess
Corp
25,723‌
1,333‌
HollyFrontier
Corp
14,674‌
428‌
Marathon
Oil
Corp
77,872‌
477‌
Marathon
Petroleum
Corp
64,071‌
2,395‌
Noble
Energy
Inc
47,265‌
423‌
Occidental
Petroleum
Corp
88,680‌
1,623‌
Phillips
66
43,027‌
3,094‌
Pioneer
Natural
Resources
Co
16,244‌
1,587‌
Valero
Energy
Corp
40,172‌
2,363‌
$
59,367‌
Oil
&
Gas
Services
-
0.21%
Baker
Hughes
Co
64,541‌
993‌
Halliburton
Co
86,440‌
1,122‌
National
Oilwell
Varco
Inc
38,251‌
469‌
Schlumberger
Ltd
136,744‌
2,515‌
TechnipFMC
PLC
41,442‌
283‌
$
5,382‌
Packaging
&
Containers
-
0.23%
Amcor
PLC
155,134‌
1,584‌
Ball
Corp
32,121‌
2,232‌
Packaging
Corp
of
America
9,344‌
932‌
Sealed
Air
Corp
15,337‌
504‌
Westrock
Co
25,544‌
722‌
$
5,974‌
Pharmaceuticals
-
6.12%
AbbVie
Inc
173,647‌
17,049‌
AmerisourceBergen
Corp
14,630‌
1,474‌
Becton
Dickinson
and
Co
29,055‌
6,952‌
Bristol-Myers
Squibb
Co
222,950‌
13,109‌
Cardinal
Health
Inc
28,770‌
1,502‌
Cigna
Corp
36,357‌
6,822‌
CVS
Health
Corp
128,790‌
8,367‌
DexCom
Inc
(d)
9,095‌
3,687‌
Eli
Lilly
and
Co
82,983‌
13,624‌
Johnson
&
Johnson
259,593‌
36,507‌
McKesson
Corp
15,947‌
2,447‌
Merck
&
Co
Inc
248,707‌
19,233‌
Mylan
NV
(d)
50,935‌
819‌
Perrigo
Co
PLC
13,430‌
742‌
Pfizer
Inc
547,332‌
17,898‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
(continued)
Zoetis
Inc
46,797‌
$
6,413‌
$
156,645‌
Pipelines
-
0.26%
Kinder
Morgan
Inc
191,632‌
2,907‌
ONEOK
Inc
40,783‌
1,355‌
Williams
Cos
Inc
/The
119,538‌
2,273‌
$
6,535‌
Real
Estate
-
0.06%
CBRE
Group
Inc
(d)
33,024‌
1,493‌
REITs
-
2.75%
Alexandria
Real
Estate
Equities
Inc
12,433‌
2,017‌
American
Tower
Corp
43,680‌
11,293‌
Apartment
Investment
and
Management
Co
14,667‌
552‌
AvalonBay
Communities
Inc
13,866‌
2,144‌
Boston
Properties
Inc
14,236‌
1,287‌
Crown
Castle
International
Corp
41,063‌
6,872‌
Digital
Realty
Trust
Inc
26,437‌
3,757‌
Duke
Realty
Corp
36,296‌
1,285‌
Equinix
Inc
8,722‌
6,125‌
Equity
Residential
34,465‌
2,027‌
Essex
Property
Trust
Inc
6,446‌
1,477‌
Extra
Space
Storage
Inc
12,718‌
1,175‌
Federal
Realty
Investment
Trust
6,929‌
590‌
Healthpeak
Properties
Inc
53,037‌
1,462‌
Host
Hotels
&
Resorts
Inc
69,463‌
750‌
Iron
Mountain
Inc
28,364‌
740‌
Kimco
Realty
Corp
42,616‌
547‌
Mid-America
Apartment
Communities
Inc
11,266‌
1,292‌
Prologis
Inc
72,773‌
6,792‌
Public
Storage
14,810‌
2,842‌
Realty
Income
Corp
33,836‌
2,013‌
Regency
Centers
Corp
16,713‌
767‌
SBA
Communications
Corp
11,000‌
3,277‌
Simon
Property
Group
Inc
30,125‌
2,060‌
SL
Green
Realty
Corp
7,542‌
372‌
UDR
Inc
29,055‌
1,086‌
Ventas
Inc
36,759‌
1,346‌
Vornado
Realty
Trust
15,628‌
597‌
Welltower
Inc
41,134‌
2,129‌
Weyerhaeuser
Co
73,525‌
1,651‌
$
70,324‌
Retail
-
5.35%
Advance
Auto
Parts
Inc
6,808‌
970‌
AutoZone
Inc
(d)
2,302‌
2,597‌
Best
Buy
Co
Inc
22,397‌
1,955‌
CarMax
Inc
(d)
16,035‌
1,436‌
Chipotle
Mexican
Grill
Inc
(d)
2,528‌
2,660‌
Costco
Wholesale
Corp
43,505‌
13,191‌
Darden
Restaurants
Inc
12,796‌
970‌
Dollar
General
Corp
24,803‌
4,725‌
Dollar
Tree
Inc
(d)
23,374‌
2,166‌
Domino's
Pizza
Inc
3,855‌
1,424‌
Gap
Inc
/The
20,975‌
265‌
Genuine
Parts
Co
14,214‌
1,236‌
Home
Depot
Inc
/The
105,976‌
26,548‌
Kohl's
Corp
15,541‌
323‌
L
Brands
Inc
22,994‌
344‌
Lowe's
Cos
Inc
74,393‌
10,052‌
McDonald's
Corp
73,264‌
13,515‌
O'Reilly
Automotive
Inc
(d)
7,315‌
3,084‌
Ross
Stores
Inc
35,017‌
2,985‌
Starbucks
Corp
115,096‌
8,470‌
Target
Corp
49,268‌
5,909‌
Tiffany
&
Co
10,760‌
1,312‌
TJX
Cos
Inc
/The
118,031‌
5,968‌
Tractor
Supply
Co
11,393‌
1,501‌
Ulta
Beauty
Inc
(d)
5,549‌
1,129‌
Walgreens
Boots
Alliance
Inc
72,606‌
3,078‌
Walmart
Inc
139,519‌
16,712‌
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
143
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Yum!
Brands
Inc
29,656‌
$
2,577‌
$
137,102‌
Savings
&
Loans
-
0.02%
People's
United
Financial
Inc
41,843‌
484‌
Semiconductors
-
4.75%
Advanced
Micro
Devices
Inc
(d)
115,400‌
6,071‌
Analog
Devices
Inc
36,301‌
4,452‌
Applied
Materials
Inc
90,304‌
5,459‌
Broadcom
Inc
39,392‌
12,433‌
Intel
Corp
417,189‌
24,960‌
IPG
Photonics
Corp
(d)
3,500‌
561‌
KLA
Corp
15,277‌
2,971‌
Lam
Research
Corp
14,303‌
4,626‌
Maxim
Integrated
Products
Inc
26,272‌
1,592‌
Microchip
Technology
Inc
24,173‌
2,546‌
Micron
Technology
Inc
(d)
109,585‌
5,646‌
NVIDIA
Corp
60,611‌
23,027‌
Qorvo
Inc
(d)
11,305‌
1,250‌
QUALCOMM
Inc
110,843‌
10,110‌
Skyworks
Solutions
Inc
16,438‌
2,102‌
Texas
Instruments
Inc
90,431‌
11,482‌
Xilinx
Inc
23,959‌
2,357‌
$
121,645‌
Shipbuilding
-
0.03%
Huntington
Ingalls
Industries
Inc
3,988‌
696‌
Software
-
10.54%
Activision
Blizzard
Inc
75,917‌
5,762‌
Adobe
Inc
(d)
47,473‌
20,665‌
Akamai
Technologies
Inc
(d)
15,988‌
1,712‌
ANSYS
Inc
(d)
8,466‌
2,470‌
Autodesk
Inc
(d)
21,598‌
5,166‌
Broadridge
Financial
Solutions
Inc
11,312‌
1,427‌
Cadence
Design
Systems
Inc
(d)
27,508‌
2,640‌
Cerner
Corp
29,989‌
2,056‌
Citrix
Systems
Inc
11,433‌
1,691‌
Electronic
Arts
Inc
(d)
28,446‌
3,756‌
Fidelity
National
Information
Services
Inc
60,875‌
8,163‌
Fiserv
Inc
(d)
55,412‌
5,409‌
Intuit
Inc
25,694‌
7,610‌
Jack
Henry
&
Associates
Inc
7,548‌
1,389‌
Microsoft
Corp
747,216‌
152,066‌
MSCI
Inc
8,377‌
2,796‌
Oracle
Corp
205,083‌
11,335‌
Paychex
Inc
31,457‌
2,383‌
Paycom
Software
Inc
(d)
4,754‌
1,472‌
salesforce.com
Inc
(d)
88,777‌
16,631‌
ServiceNow
Inc
(d)
18,791‌
7,612‌
Synopsys
Inc
(d)
14,856‌
2,897‌
Take-Two
Interactive
Software
Inc
(d)
11,226‌
1,567‌
Tyler
Technologies
Inc
(d)
3,917‌
1,359‌
$
270,034‌
Telecommunications
-
2.97%
Arista
Networks
Inc
(d)
5,296‌
1,112‌
AT&T
Inc
702,046‌
21,223‌
CenturyLink
Inc
97,325‌
976‌
Cisco
Systems
Inc
417,864‌
19,489‌
Corning
Inc
74,787‌
1,937‌
Juniper
Networks
Inc
32,650‌
747‌
Motorola
Solutions
Inc
16,757‌
2,348‌
T-Mobile
US
Inc
(d)
56,102‌
5,843‌
T-Mobile
US
Inc
-
Rights
(d)
38,575‌
7‌
Verizon
Communications
Inc
407,727‌
22,478‌
$
76,160‌
Textiles
-
0.02%
Mohawk
Industries
Inc
(d)
5,861‌
596‌
Toys,
Games
&
Hobbies
-
0.04%
Hasbro
Inc
12,554‌
941‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
-
1.50%
CH
Robinson
Worldwide
Inc
13,262‌
$
1,048‌
CSX
Corp
75,424‌
5,260‌
Expeditors
International
of
Washington
Inc
16,398‌
1,247‌
FedEx
Corp
23,681‌
3,321‌
JB
Hunt
Transport
Services
Inc
8,313‌
1,000‌
Kansas
City
Southern
9,363‌
1,398‌
Norfolk
Southern
Corp
25,242‌
4,432‌
Old
Dominion
Freight
Line
Inc
9,297‌
1,577‌
Union
Pacific
Corp
66,861‌
11,304‌
United
Parcel
Service
Inc
69,378‌
7,713‌
$
38,300‌
Water
-
0.09%
American
Water
Works
Co
Inc
17,836‌
2,295‌
TOTAL
COMMON
STOCKS
$
2,525,856‌
Total
Investments
$
2,569,172‌
Other
Assets
and
Liabilities
-  (0.30)%
(7,685‌)
TOTAL
NET
ASSETS
-
100.00%
$
2,561,487‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,866
or
0.11%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
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
$4,669
or
0.18%
of
net
assets.
Portfolio
Summary  (unaudited)
Sector
Percent
Technology
22.53‌%
Consumer,
Non-cyclical
22.22‌%
Communications
16.31‌%
Financial
14.35‌%
Industrial
7.70‌%
Consumer,
Cyclical
7.65‌%
Utilities
3.02‌%
Energy
2.79‌%
Basic
Materials
2.04‌%
Money
Market
Funds
1.51‌%
Investment
Companies
0.18‌%
Other
Assets
and
Liabilities
(0.30‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
144
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
34,952‌
$
353,894‌
$
353,047‌
$
35,799‌
$
34,952‌
$
353,894‌
$
353,047‌
$
35,799‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
119‌
$
—‌
$
—‌
$
—‌
$
119‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
September
2020
Long
233‌
$
36,001‌
$
785‌
Total
$
785‌
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
145
INVESTMENT
COMPANIES
-
6.77%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.53%
iShares
Core
S&P
500
ETF
3,638‌
$
1,127‌
Money
Market
Funds
-
6.24%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
248,333‌
248‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
13,007,217‌
13,007‌
$
13,255‌
TOTAL
INVESTMENT
COMPANIES
$
14,382‌
COMMON
STOCKS
-
93.77%
Shares
Held
Value
(000's)
Advertising
-
0.07%
Interpublic
Group
of
Cos
Inc/The
3,027‌
$
52‌
Omnicom
Group
Inc
1,666‌
91‌
$
143‌
Aerospace
&
Defense
-
1.60%
Boeing
Co/The
4,166‌
764‌
General
Dynamics
Corp
1,806‌
270‌
Howmet
Aerospace
Inc
2,984‌
47‌
L3Harris
Technologies
Inc
1,678‌
285‌
Lockheed
Martin
Corp
1,918‌
700‌
Northrop
Grumman
Corp
1,206‌
371‌
Raytheon
Technologies
Corp
11,431‌
704‌
Teledyne
Technologies
Inc
(d)
285‌
88‌
TransDigm
Group
Inc
391‌
173‌
$
3,402‌
Agriculture
-
0.75%
Altria
Group
Inc
14,444‌
567‌
Archer-Daniels-Midland
Co
4,317‌
172‌
Philip
Morris
International
Inc
12,102‌
848‌
$
1,587‌
Airlines
-
0.20%
Alaska
Air
Group
Inc
950‌
34‌
American
Airlines
Group
Inc
(e)
3,862‌
51‌
Delta
Air
Lines
Inc
4,413‌
124‌
Southwest
Airlines
Co
4,168‌
142‌
United
Airlines
Holdings
Inc
(d)
1,963‌
68‌
$
419‌
Apparel
-
0.58%
Hanesbrands
Inc
2,706‌
31‌
NIKE
Inc
9,638‌
945‌
PVH
Corp
551‌
26‌
Ralph
Lauren
Corp
371‌
27‌
Tapestry
Inc
2,145‌
28‌
Under
Armour
Inc
-
Class
A
(d)
1,466‌
14‌
Under
Armour
Inc
-
Class
C
(d)
1,529‌
14‌
VF
Corp
2,480‌
151‌
$
1,236‌
Automobile
Manufacturers
-
0.39%
Cummins
Inc
1,147‌
199‌
Ford
Motor
Co
30,362‌
184‌
General
Motors
Co
9,788‌
248‌
PACCAR
Inc
2,687‌
201‌
$
832‌
Automobile
Parts
&
Equipment
-
0.10%
Aptiv
PLC
1,980‌
154‌
BorgWarner
Inc
1,610‌
57‌
$
211‌
Banks
-
4.09%
Bank
of
America
Corp
60,695‌
1,442‌
Bank
of
New
York
Mellon
Corp/The
6,264‌
242‌
Citigroup
Inc
16,183‌
827‌
Citizens
Financial
Group
Inc
3,317‌
84‌
Comerica
Inc
1,082‌
41‌
Fifth
Third
Bancorp
5,533‌
107‌
First
Republic
Bank/CA
1,332‌
141‌
Goldman
Sachs
Group
Inc/The
2,405‌
475‌
Huntington
Bancshares
Inc/OH
7,884‌
71‌
JPMorgan
Chase
&
Co
23,686‌
2,228‌
KeyCorp
7,583‌
92‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
M&T
Bank
Corp
997‌
$
104‌
Morgan
Stanley
9,307‌
450‌
Northern
Trust
Corp
1,618‌
128‌
PNC
Financial
Services
Group
Inc/The
3,299‌
347‌
Regions
Financial
Corp
7,440‌
83‌
State
Street
Corp
2,737‌
174‌
SVB
Financial
Group
(d)
401‌
86‌
Truist
Financial
Corp
10,473‌
393‌
US
Bancorp
10,655‌
392‌
Wells
Fargo
&
Co
29,003‌
743‌
Zions
Bancorp
NA
1,275‌
43‌
$
8,693‌
Beverages
-
1.57%
Brown-Forman
Corp
-
B
Shares
1,416‌
90‌
Coca-Cola
Co/The
30,045‌
1,343‌
Constellation
Brands
Inc
1,304‌
228‌
Molson
Coors
Beverage
Co
1,460‌
50‌
Monster
Beverage
Corp
(d)
2,906‌
202‌
PepsiCo
Inc
10,784‌
1,426‌
$
3,339‌
Biotechnology
-
1.99%
Alexion
Pharmaceuticals
Inc
(d)
1,715‌
192‌
Amgen
Inc
4,574‌
1,079‌
Biogen
Inc
(d)
1,269‌
340‌
Bio-Rad
Laboratories
Inc
(d)
166‌
75‌
Corteva
Inc
5,816‌
156‌
Gilead
Sciences
Inc
9,749‌
750‌
Illumina
Inc
(d)
1,143‌
423‌
Incyte
Corp
(d)
1,401‌
146‌
Regeneron
Pharmaceuticals
Inc
(d)
784‌
489‌
Vertex
Pharmaceuticals
Inc
(d)
2,015‌
585‌
$
4,235‌
Building
Materials
-
0.34%
Carrier
Global
Corp
6,328‌
141‌
Fortune
Brands
Home
&
Security
Inc
1,085‌
69‌
Johnson
Controls
International
plc
5,783‌
197‌
Martin
Marietta
Materials
Inc
484‌
100‌
Masco
Corp
2,051‌
103‌
Vulcan
Materials
Co
1,028‌
119‌
$
729‌
Chemicals
-
1.59%
Air
Products
and
Chemicals
Inc
1,716‌
414‌
Albemarle
Corp
825‌
64‌
Celanese
Corp
919‌
79‌
CF
Industries
Holdings
Inc
1,663‌
47‌
Dow
Inc
5,756‌
235‌
DuPont
de
Nemours
Inc
5,704‌
303‌
Eastman
Chemical
Co
1,055‌
74‌
Ecolab
Inc
1,922‌
382‌
FMC
Corp
1,005‌
100‌
International
Flavors
&
Fragrances
Inc
(e)
830‌
102‌
Linde
PLC
4,083‌
866‌
LyondellBasell
Industries
NV
1,997‌
131‌
Mosaic
Co/The
2,709‌
34‌
PPG
Industries
Inc
1,833‌
194‌
Sherwin-Williams
Co/The
629‌
364‌
$
3,389‌
Commercial
Services
-
2.31%
Automatic
Data
Processing
Inc
3,342‌
498‌
Cintas
Corp
655‌
175‌
Equifax
Inc
943‌
162‌
FleetCor
Technologies
Inc
(d)
652‌
164‌
Gartner
Inc
(d)
693‌
84‌
Global
Payments
Inc
2,324‌
394‌
H&R
Block
Inc
1,497‌
21‌
IHS
Markit
Ltd
3,100‌
234‌
MarketAxess
Holdings
Inc
295‌
148‌
Moody's
Corp
1,254‌
345‌
Nielsen
Holdings
PLC
2,770‌
41‌
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
146
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
PayPal
Holdings
Inc
(d)
9,126‌
$
1,590‌
Quanta
Services
Inc
1,071‌
42‌
Robert
Half
International
Inc
892‌
47‌
Rollins
Inc
1,095‌
46‌
S&P
Global
Inc
1,873‌
617‌
United
Rentals
Inc
(d)
560‌
83‌
Verisk
Analytics
Inc
1,261‌
215‌
$
4,906‌
Computers
-
6.83%
Accenture
PLC
-
Class
A
4,950‌
1,063‌
Apple
Inc
31,671‌
11,554‌
Cognizant
Technology
Solutions
Corp
4,202‌
239‌
DXC
Technology
Co
1,973‌
32‌
Fortinet
Inc
(d)
1,043‌
143‌
Hewlett
Packard
Enterprise
Co
9,987‌
97‌
HP
Inc
11,116‌
194‌
International
Business
Machines
Corp
6,900‌
833‌
Leidos
Holdings
Inc
1,037‌
97‌
NetApp
Inc
1,720‌
76‌
Seagate
Technology
PLC
1,756‌
85‌
Western
Digital
Corp
2,329‌
103‌
$
14,516‌
Consumer
Products
-
0.38%
Avery
Dennison
Corp
647‌
74‌
Church
&
Dwight
Co
Inc
1,910‌
148‌
Clorox
Co/The
972‌
213‌
Kimberly-Clark
Corp
2,648‌
374‌
$
809‌
Cosmetics
&
Personal
Care
-
1.47%
Colgate-Palmolive
Co
6,656‌
488‌
Coty
Inc
2,314‌
10‌
Estee
Lauder
Cos
Inc/The
1,746‌
330‌
Procter
&
Gamble
Co/The
19,245‌
2,301‌
$
3,129‌
Distribution
&
Wholesale
-
0.23%
Copart
Inc
(d)
1,605‌
133‌
Fastenal
Co
4,451‌
191‌
LKQ
Corp
(d)
2,363‌
62‌
WW
Grainger
Inc
338‌
106‌
$
492‌
Diversified
Financial
Services
-
3.78%
American
Express
Co
5,132‌
489‌
Ameriprise
Financial
Inc
950‌
143‌
BlackRock
Inc
1,200‌
653‌
Capital
One
Financial
Corp
3,540‌
222‌
Cboe
Global
Markets
Inc
852‌
79‌
Charles
Schwab
Corp/The
8,905‌
300‌
CME
Group
Inc
2,786‌
453‌
Discover
Financial
Services
2,382‌
119‌
Franklin
Resources
Inc
2,154‌
45‌
Intercontinental
Exchange
Inc
4,254‌
390‌
Invesco
Ltd
2,924‌
31‌
Mastercard
Inc
6,870‌
2,031‌
Nasdaq
Inc
892‌
107‌
Raymond
James
Financial
Inc
949‌
65‌
Synchrony
Financial
4,175‌
93‌
T
Rowe
Price
Group
Inc
1,770‌
219‌
Visa
Inc
13,114‌
2,533‌
Western
Union
Co/The
3,195‌
69‌
$
8,041‌
Electric
-
2.71%
AES
Corp/The
5,167‌
75‌
Alliant
Energy
Corp
1,939‌
93‌
Ameren
Corp
1,918‌
135‌
American
Electric
Power
Co
Inc
3,851‌
307‌
CenterPoint
Energy
Inc
4,233‌
79‌
CMS
Energy
Corp
2,224‌
130‌
Consolidated
Edison
Inc
2,596‌
187‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
6,522‌
$
529‌
DTE
Energy
Co
1,497‌
161‌
Duke
Energy
Corp
5,711‌
456‌
Edison
International
2,937‌
160‌
Entergy
Corp
1,554‌
146‌
Evergy
Inc
1,761‌
104‌
Eversource
Energy
2,614‌
218‌
Exelon
Corp
7,573‌
275‌
FirstEnergy
Corp
4,210‌
163‌
NextEra
Energy
Inc
3,804‌
914‌
NRG
Energy
Inc
1,899‌
62‌
Pinnacle
West
Capital
Corp
873‌
64‌
PPL
Corp
5,974‌
154‌
Public
Service
Enterprise
Group
Inc
3,929‌
193‌
Sempra
Energy
2,273‌
266‌
Southern
Co/The
8,206‌
425‌
WEC
Energy
Group
Inc
2,450‌
215‌
Xcel
Energy
Inc
4,080‌
255‌
$
5,766‌
Electrical
Components
&
Equipment
-
0.21%
AMETEK
Inc
1,782‌
159‌
Emerson
Electric
Co
4,645‌
288‌
$
447‌
Electronics
-
1.22%
Agilent
Technologies
Inc
2,400‌
212‌
Allegion
plc
717‌
73‌
Amphenol
Corp
2,299‌
220‌
FLIR
Systems
Inc
1,018‌
41‌
Fortive
Corp
2,303‌
156‌
Garmin
Ltd
1,127‌
110‌
Honeywell
International
Inc
5,456‌
789‌
Keysight
Technologies
Inc
(d)
1,452‌
146‌
Mettler-Toledo
International
Inc
(d)
187‌
151‌
PerkinElmer
Inc
865‌
85‌
Roper
Technologies
Inc
811‌
315‌
TE
Connectivity
Ltd
2,565‌
209‌
Waters
Corp
(d)
481‌
87‌
$
2,594‌
Engineering
&
Construction
-
0.04%
Jacobs
Engineering
Group
Inc
1,011‌
86‌
Entertainment
-
0.02%
Live
Nation
Entertainment
Inc
(d)
1,103‌
49‌
Environmental
Control
-
0.24%
Pentair
PLC
1,289‌
49‌
Republic
Services
Inc
1,632‌
134‌
Waste
Management
Inc
3,017‌
319‌
$
502‌
Food
-
1.17%
Campbell
Soup
Co
1,314‌
65‌
Conagra
Brands
Inc
3,785‌
133‌
General
Mills
Inc
4,710‌
290‌
Hershey
Co/The
1,145‌
148‌
Hormel
Foods
Corp
2,177‌
105‌
J
M
Smucker
Co/The
886‌
94‌
Kellogg
Co
1,944‌
128‌
Kraft
Heinz
Co/The
4,843‌
155‌
Kroger
Co/The
6,112‌
207‌
Lamb
Weston
Holdings
Inc
1,134‌
73‌
McCormick
&
Co
Inc/MD
960‌
172‌
Mondelez
International
Inc
11,097‌
567‌
Sysco
Corp
3,945‌
216‌
Tyson
Foods
Inc
2,287‌
137‌
$
2,490‌
Forest
Products
&
Paper
-
0.05%
International
Paper
Co
3,054‌
108‌
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
147
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0.08%
Atmos
Energy
Corp
950‌
$
94‌
NiSource
Inc
2,974‌
68‌
$
162‌
Hand
&
Machine
Tools
-
0.11%
Snap-on
Inc
422‌
58‌
Stanley
Black
&
Decker
Inc
1,197‌
167‌
$
225‌
Healthcare
-
Products
-
3.72%
Abbott
Laboratories
13,748‌
1,257‌
ABIOMED
Inc
(d)
351‌
85‌
Align
Technology
Inc
(d)
557‌
153‌
Baxter
International
Inc
3,954‌
340‌
Boston
Scientific
Corp
(d)
11,104‌
390‌
Cooper
Cos
Inc/The
383‌
109‌
Danaher
Corp
4,890‌
865‌
DENTSPLY
SIRONA
Inc
1,703‌
75‌
Edwards
Lifesciences
Corp
(d)
4,817‌
333‌
Henry
Schein
Inc
(d)
1,110‌
65‌
Hologic
Inc
(d)
2,008‌
114‌
IDEXX
Laboratories
Inc
(d)
661‌
218‌
Intuitive
Surgical
Inc
(d)
906‌
516‌
Medtronic
PLC
10,423‌
956‌
ResMed
Inc
1,123‌
216‌
STERIS
PLC
659‌
101‌
Stryker
Corp
2,504‌
451‌
Teleflex
Inc
361‌
131‌
Thermo
Fisher
Scientific
Inc
3,071‌
1,113‌
Varian
Medical
Systems
Inc
(d)
705‌
86‌
West
Pharmaceutical
Services
Inc
572‌
130‌
Zimmer
Biomet
Holdings
Inc
1,606‌
192‌
$
7,896‌
Healthcare
-
Services
-
1.94%
Anthem
Inc
1,960‌
515‌
Centene
Corp
(d)
4,502‌
286‌
DaVita
Inc
(d)
662‌
52‌
HCA
Healthcare
Inc
2,046‌
199‌
Humana
Inc
1,028‌
399‌
IQVIA
Holdings
Inc
(d)
1,381‌
196‌
Laboratory
Corp
of
America
Holdings
(d)
754‌
125‌
Quest
Diagnostics
Inc
1,040‌
119‌
UnitedHealth
Group
Inc
7,372‌
2,174‌
Universal
Health
Services
Inc
603‌
56‌
$
4,121‌
Home
Builders
-
0.20%
DR
Horton
Inc
2,572‌
142‌
Lennar
Corp
-
A
Shares
2,136‌
132‌
NVR
Inc
(d)
27‌
88‌
PulteGroup
Inc
1,960‌
67‌
$
429‌
Home
Furnishings
-
0.05%
Leggett
&
Platt
Inc
1,027‌
36‌
Whirlpool
Corp
483‌
63‌
$
99‌
Housewares
-
0.02%
Newell
Brands
Inc
2,966‌
47‌
Insurance
-
3.08%
Aflac
Inc
5,578‌
201‌
Allstate
Corp/The
2,443‌
237‌
American
International
Group
Inc
6,696‌
209‌
Aon
PLC
1,797‌
346‌
Arthur
J
Gallagher
&
Co
1,473‌
144‌
Assurant
Inc
463‌
48‌
Berkshire
Hathaway
Inc
-
Class
B
(d)
15,110‌
2,697‌
Chubb
Ltd
3,507‌
444‌
Cincinnati
Financial
Corp
1,173‌
75‌
Everest
Re
Group
Ltd
312‌
64‌
Globe
Life
Inc
761‌
57‌
Hartford
Financial
Services
Group
Inc/The
2,783‌
107‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
1,502‌
$
55‌
Loews
Corp
1,882‌
65‌
Marsh
&
McLennan
Cos
Inc
3,965‌
426‌
MetLife
Inc
5,998‌
219‌
Principal
Financial
Group
Inc
1,981‌
82‌
Progressive
Corp/The
4,549‌
364‌
Prudential
Financial
Inc
3,071‌
187‌
Travelers
Cos
Inc/The
1,966‌
224‌
Unum
Group
1,582‌
26‌
W
R
Berkley
Corp
1,099‌
63‌
Willis
Towers
Watson
PLC
1,000‌
197‌
$
6,537‌
Internet
-
10.77%
Alphabet
Inc
-
A
Shares
(d)
2,333‌
3,308‌
Alphabet
Inc
-
C
Shares
(d)
2,274‌
3,215‌
Amazon.com
Inc
(d)
3,257‌
8,985‌
Booking
Holdings
Inc
(d)
319‌
508‌
CDW
Corp/DE
1,106‌
129‌
E*TRADE
Financial
Corp
1,719‌
85‌
eBay
Inc
5,135‌
269‌
Expedia
Group
Inc
1,052‌
86‌
F5
Networks
Inc
(d)
472‌
66‌
Facebook
Inc
(d)
18,691‌
4,244‌
Netflix
Inc
(d)
3,418‌
1,555‌
NortonLifeLock
Inc
4,213‌
84‌
Twitter
Inc
(d)
6,098‌
182‌
VeriSign
Inc
(d)
791‌
164‌
$
22,880‌
Iron
&
Steel
-
0.05%
Nucor
Corp
2,341‌
97‌
Leisure
Products
&
Services
-
0.08%
Carnival
Corp
(e)
3,682‌
60‌
Norwegian
Cruise
Line
Holdings
Ltd
(d),(e)
1,992‌
33‌
Royal
Caribbean
Cruises
Ltd
1,334‌
67‌
$
160‌
Lodging
-
0.27%
Hilton
Worldwide
Holdings
Inc
2,156‌
158‌
Las
Vegas
Sands
Corp
2,609‌
119‌
Marriott
International
Inc/MD
2,093‌
180‌
MGM
Resorts
International
3,835‌
64‌
Wynn
Resorts
Ltd
753‌
56‌
$
577‌
Machinery
-
Construction
&
Mining
-
0.25%
Caterpillar
Inc
4,208‌
532‌
Machinery
-
Diversified
-
0.58%
Deere
&
Co
2,432‌
382‌
Dover
Corp
1,119‌
108‌
Flowserve
Corp
1,010‌
29‌
IDEX
Corp
586‌
93‌
Ingersoll
Rand
Inc
(d)
2,687‌
75‌
Otis
Worldwide
Corp
3,163‌
180‌
Rockwell
Automation
Inc
900‌
192‌
Westinghouse
Air
Brake
Technologies
Corp
1,406‌
81‌
Xylem
Inc/NY
1,398‌
91‌
$
1,231‌
Media
-
1.85%
Charter
Communications
Inc
(d)
1,172‌
598‌
Comcast
Corp
-
Class
A
35,403‌
1,380‌
Discovery
Inc
-
A
Shares
(d)
1,243‌
26‌
Discovery
Inc
-
C
Shares
(d)
2,460‌
47‌
DISH
Network
Corp
(d)
1,998‌
69‌
Fox
Corp
-
A
Shares
2,664‌
72‌
Fox
Corp
-
B
Shares
1,239‌
33‌
News
Corp
-
A
Shares
3,021‌
36‌
News
Corp
-
B
Shares
947‌
11‌
ViacomCBS
Inc
4,200‌
98‌
Walt
Disney
Co/The
14,039‌
1,566‌
$
3,936‌
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
148
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
-
0.24%
Freeport-McMoRan
Inc
11,285‌
$
131‌
Newmont
Corp
6,240‌
385‌
$
516‌
Miscellaneous
Manufacturers
-
1.07%
3M
Co
4,470‌
697‌
A
O
Smith
Corp
1,051‌
50‌
Eaton
Corp
PLC
3,110‌
272‌
General
Electric
Co
67,992‌
464‌
Illinois
Tool
Works
Inc
2,235‌
391‌
Parker-Hannifin
Corp
997‌
183‌
Textron
Inc
1,768‌
58‌
Trane
Technologies
PLC
1,858‌
165‌
$
2,280‌
Office
&
Business
Equipment
-
0.06%
Xerox
Holdings
Corp
1,424‌
22‌
Zebra
Technologies
Corp
(d)
413‌
105‌
$
127‌
Oil
&
Gas
-
2.20%
Apache
Corp
2,933‌
40‌
Cabot
Oil
&
Gas
Corp
3,100‌
53‌
Chevron
Corp
14,512‌
1,295‌
Concho
Resources
Inc
1,530‌
79‌
ConocoPhillips
8,337‌
350‌
Devon
Energy
Corp
2,976‌
34‌
Diamondback
Energy
Inc
1,228‌
51‌
EOG
Resources
Inc
4,523‌
229‌
Exxon
Mobil
Corp
(f)
32,865‌
1,470‌
Hess
Corp
2,028‌
105‌
HollyFrontier
Corp
1,156‌
34‌
Marathon
Oil
Corp
6,144‌
38‌
Marathon
Petroleum
Corp
5,053‌
189‌
Noble
Energy
Inc
3,728‌
33‌
Occidental
Petroleum
Corp
6,995‌
128‌
Phillips
66
3,396‌
244‌
Pioneer
Natural
Resources
Co
1,280‌
125‌
Valero
Energy
Corp
3,170‌
186‌
$
4,683‌
Oil
&
Gas
Services
-
0.20%
Baker
Hughes
Co
5,091‌
78‌
Halliburton
Co
6,818‌
89‌
National
Oilwell
Varco
Inc
3,016‌
37‌
Schlumberger
Ltd
10,786‌
199‌
TechnipFMC
PLC
3,268‌
22‌
$
425‌
Packaging
&
Containers
-
0.22%
Amcor
PLC
12,239‌
125‌
Ball
Corp
2,533‌
176‌
Packaging
Corp
of
America
736‌
73‌
Sealed
Air
Corp
1,209‌
40‌
Westrock
Co
2,014‌
57‌
$
471‌
Pharmaceuticals
-
5.82%
AbbVie
Inc
13,698‌
1,345‌
AmerisourceBergen
Corp
1,154‌
116‌
Becton
Dickinson
and
Co
2,292‌
548‌
Bristol-Myers
Squibb
Co
17,589‌
1,034‌
Cardinal
Health
Inc
2,268‌
118‌
Cigna
Corp
2,869‌
538‌
CVS
Health
Corp
10,158‌
660‌
DexCom
Inc
(d)
717‌
291‌
Eli
Lilly
and
Co
6,546‌
1,075‌
Johnson
&
Johnson
20,478‌
2,880‌
McKesson
Corp
1,257‌
193‌
Merck
&
Co
Inc
19,621‌
1,517‌
Mylan
NV
(d)
4,017‌
65‌
Perrigo
Co
PLC
1,058‌
59‌
Pfizer
Inc
43,178‌
1,412‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
(continued)
Zoetis
Inc
3,691‌
$
506‌
$
12,357‌
Pipelines
-
0.24%
Kinder
Morgan
Inc
15,116‌
229‌
ONEOK
Inc
3,216‌
107‌
Williams
Cos
Inc/The
9,429‌
180‌
$
516‌
Real
Estate
-
0.06%
CBRE
Group
Inc
(d)
2,604‌
118‌
REITs
-
2.61%
Alexandria
Real
Estate
Equities
Inc
980‌
159‌
American
Tower
Corp
3,446‌
891‌
Apartment
Investment
and
Management
Co
1,156‌
44‌
AvalonBay
Communities
Inc
1,093‌
169‌
Boston
Properties
Inc
1,122‌
101‌
Crown
Castle
International
Corp
3,239‌
542‌
Digital
Realty
Trust
Inc
2,085‌
296‌
Duke
Realty
Corp
2,862‌
101‌
Equinix
Inc
688‌
483‌
Equity
Residential
2,718‌
160‌
Essex
Property
Trust
Inc
509‌
117‌
Extra
Space
Storage
Inc
1,002‌
93‌
Federal
Realty
Investment
Trust
546‌
47‌
Healthpeak
Properties
Inc
4,183‌
115‌
Host
Hotels
&
Resorts
Inc
5,481‌
59‌
Iron
Mountain
Inc
2,237‌
58‌
Kimco
Realty
Corp
3,361‌
43‌
Mid-America
Apartment
Communities
Inc
888‌
102‌
Prologis
Inc
5,740‌
536‌
Public
Storage
1,167‌
224‌
Realty
Income
Corp
2,668‌
159‌
Regency
Centers
Corp
1,317‌
60‌
SBA
Communications
Corp
868‌
259‌
Simon
Property
Group
Inc
2,376‌
162‌
SL
Green
Realty
Corp
595‌
29‌
UDR
Inc
2,291‌
86‌
Ventas
Inc
2,899‌
106‌
Vornado
Realty
Trust
1,232‌
47‌
Welltower
Inc
3,244‌
168‌
Weyerhaeuser
Co
5,800‌
130‌
$
5,546‌
Retail
-
5.09%
Advance
Auto
Parts
Inc
536‌
76‌
AutoZone
Inc
(d)
183‌
207‌
Best
Buy
Co
Inc
1,766‌
154‌
CarMax
Inc
(d)
1,265‌
113‌
Chipotle
Mexican
Grill
Inc
(d)
200‌
211‌
Costco
Wholesale
Corp
3,432‌
1,041‌
Darden
Restaurants
Inc
1,008‌
76‌
Dollar
General
Corp
1,956‌
373‌
Dollar
Tree
Inc
(d)
1,843‌
171‌
Domino's
Pizza
Inc
304‌
112‌
Gap
Inc/The
1,655‌
21‌
Genuine
Parts
Co
1,121‌
98‌
Home
Depot
Inc/The
8,362‌
2,095‌
Kohl's
Corp
1,225‌
25‌
L
Brands
Inc
1,813‌
27‌
Lowe's
Cos
Inc
5,869‌
793‌
McDonald's
Corp
5,781‌
1,066‌
O'Reilly
Automotive
Inc
(d)
578‌
244‌
Ross
Stores
Inc
2,763‌
236‌
Starbucks
Corp
9,081‌
668‌
Target
Corp
3,888‌
466‌
Tiffany
&
Co
848‌
103‌
TJX
Cos
Inc/The
9,312‌
471‌
Tractor
Supply
Co
899‌
119‌
Ulta
Beauty
Inc
(d)
438‌
89‌
Walgreens
Boots
Alliance
Inc
5,729‌
243‌
Walmart
Inc
11,005‌
1,318‌
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
149
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Yum!
Brands
Inc
2,339‌
$
203‌
$
10,819‌
Savings
&
Loans
-
0.02%
People's
United
Financial
Inc
3,301‌
38‌
Semiconductors
-
4.52%
Advanced
Micro
Devices
Inc
(d)
9,102‌
479‌
Analog
Devices
Inc
2,862‌
351‌
Applied
Materials
Inc
7,125‌
431‌
Broadcom
Inc
3,107‌
981‌
Intel
Corp
32,912‌
1,969‌
IPG
Photonics
Corp
(d)
275‌
44‌
KLA
Corp
1,205‌
234‌
Lam
Research
Corp
1,128‌
365‌
Maxim
Integrated
Products
Inc
2,073‌
126‌
Microchip
Technology
Inc
1,906‌
201‌
Micron
Technology
Inc
(d)
8,644‌
445‌
NVIDIA
Corp
4,781‌
1,816‌
Qorvo
Inc
(d)
892‌
98‌
QUALCOMM
Inc
8,745‌
798‌
Skyworks
Solutions
Inc
1,297‌
166‌
Texas
Instruments
Inc
7,135‌
906‌
Xilinx
Inc
1,891‌
186‌
$
9,596‌
Shipbuilding
-
0.03%
Huntington
Ingalls
Industries
Inc
315‌
55‌
Software
-
10.02%
Activision
Blizzard
Inc
5,988‌
455‌
Adobe
Inc
(d)
3,745‌
1,630‌
Akamai
Technologies
Inc
(d)
1,260‌
135‌
ANSYS
Inc
(d)
668‌
195‌
Autodesk
Inc
(d)
1,703‌
407‌
Broadridge
Financial
Solutions
Inc
892‌
113‌
Cadence
Design
Systems
Inc
(d)
2,169‌
208‌
Cerner
Corp
2,366‌
162‌
Citrix
Systems
Inc
901‌
133‌
Electronic
Arts
Inc
(d)
2,245‌
296‌
Fidelity
National
Information
Services
Inc
4,801‌
644‌
Fiserv
Inc
(d)
4,372‌
427‌
Intuit
Inc
2,027‌
600‌
Jack
Henry
&
Associates
Inc
595‌
110‌
Microsoft
Corp
(f)
58,947‌
11,996‌
MSCI
Inc
661‌
221‌
Oracle
Corp
16,179‌
894‌
Paychex
Inc
2,481‌
188‌
Paycom
Software
Inc
(d)
376‌
117‌
salesforce.com
Inc
(d)
7,002‌
1,312‌
ServiceNow
Inc
(d)
1,482‌
600‌
Synopsys
Inc
(d)
1,171‌
228‌
Take-Two
Interactive
Software
Inc
(d)
885‌
124‌
Tyler
Technologies
Inc
(d)
309‌
107‌
$
21,302‌
Telecommunications
-
2.83%
Arista
Networks
Inc
(d)
419‌
88‌
AT&T
Inc
55,385‌
1,674‌
CenturyLink
Inc
7,677‌
77‌
Cisco
Systems
Inc
32,963‌
1,537‌
Corning
Inc
5,900‌
153‌
Juniper
Networks
Inc
2,577‌
59‌
Motorola
Solutions
Inc
1,322‌
185‌
T-Mobile
US
Inc
(d)
4,425‌
461‌
T-Mobile
US
Inc
-
Rights
(d)
3,037‌
1‌
Verizon
Communications
Inc
32,164‌
1,773‌
$
6,008‌
Textiles
-
0.02%
Mohawk
Industries
Inc
(d)
461‌
47‌
Toys,
Games
&
Hobbies
-
0.03%
Hasbro
Inc
990‌
74‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
-
1.42%
CH
Robinson
Worldwide
Inc
1,045‌
$
83‌
CSX
Corp
5,950‌
415‌
Expeditors
International
of
Washington
Inc
1,295‌
98‌
FedEx
Corp
1,867‌
262‌
JB
Hunt
Transport
Services
Inc
655‌
79‌
Kansas
City
Southern
739‌
110‌
Norfolk
Southern
Corp
1,992‌
350‌
Old
Dominion
Freight
Line
Inc
734‌
124‌
Union
Pacific
Corp
5,275‌
892‌
United
Parcel
Service
Inc
5,472‌
608‌
$
3,021‌
Water
-
0.09%
American
Water
Works
Co
Inc
1,406‌
181‌
TOTAL
COMMON
STOCKS
$
199,259‌
TOTAL
PURCHASED
OPTIONS
-
0.54%
$
1,152‌
Total
Investments
$
214,793‌
Other
Assets
and
Liabilities
-  (1.08)%
(2,297‌)
TOTAL
NET
ASSETS
-
100.00%
$
212,496‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$248
or
0.12%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
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
$1,547
or
0.73%
of
net
assets.
Portfolio
Summary  (unaudited)
Sector
Percent
Technology
21.43‌%
Consumer,
Non-cyclical
21.12‌%
Communications
15.52‌%
Financial
13.64‌%
Industrial
7.33‌%
Consumer,
Cyclical
7.28‌%
Money
Market
Funds
6.24‌%
Utilities
2.88‌%
Energy
2.64‌%
Basic
Materials
1.93‌%
Purchased
Options
0.54‌%
Investment
Companies
0.53‌%
Other
Assets
and
Liabilities
(1.08‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
150
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
12,955‌
$
35,062‌
$
35,010‌
$
13,007‌
$
12,955‌
$
35,062‌
$
35,010‌
$
13,007‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
43‌
$
—‌
$
—‌
$
—‌
$
43‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Options
Purchased
Options
Outstanding
Counterparty
Contracts/
Shares
Notional
Amount
Exercise
Price
Expiration
Date
Upfront
Payments/
(Premiums)
Fair
Value
Unrealized
Appreciation/
(Depreciation)
Call
-
S&P
500
Index
N/A
100‌
$
10‌
$
3,200.00‌
07/20/2020
$
568‌
$
169‌
$
(399‌)
Put
-
S&P
500
Index
N/A
200‌
20‌
$
3,050.00‌
07/20/2020
1,190‌
983‌
(207‌)
Total
$
1,758‌
$
1,152‌
$
(606‌)
Written
Options
Outstanding
Counterparty
Contracts/
Shares
Notional
Amount
Exercise
Price
Expiration
Date
Upfront
Payments/
(Premiums)
Fair
Value
Unrealized
Appreciation/
(Depreciation)
Call
-
S&P
500
Index
N/A
100‌
$
10‌
$
3,210.00‌
07/20/2020
$
(520‌)
$
(146‌)
$
374‌
Put
-
S&P
500
Index
N/A
200‌
20‌
$
3,000.00‌
07/20/2020
(963‌)
(734‌)
229‌
Total
$
(1,483‌)
$
(880‌)
$
603‌
Amounts
in
thousands
except
contracts/shares.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini;
September
2020
Long
19‌
$
2,936‌
$
71‌
Total
$
71‌
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
MidCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
151
INVESTMENT
COMPANIES
-
0.21%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.21%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
197,078‌
$
197‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
922,788‌
923‌
$
1,120‌
TOTAL
INVESTMENT
COMPANIES
$
1,120‌
COMMON
STOCKS
-
100.11%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
5.22%
HEICO
Corp
-
Class
A
66,970‌
$
5,440‌
TransDigm
Group
Inc
51,584‌
22,803‌
$
28,243‌
Banks
-
1.26%
First
Republic
Bank/CA
48,990‌
5,193‌
M&T
Bank
Corp
15,642‌
1,626‌
$
6,819‌
Beverages
-
0.54%
Brown-Forman
Corp
-
B
Shares
46,029‌
2,930‌
Building
Materials
-
3.72%
Martin
Marietta
Materials
Inc
28,940‌
5,978‌
Summit
Materials
Inc
(d)
131,622‌
2,117‌
Vulcan
Materials
Co
103,602‌
12,002‌
$
20,097‌
Chemicals
-
0.68%
Air
Products
and
Chemicals
Inc
15,185‌
3,666‌
Commercial
Services
-
10.45%
CoStar
Group
Inc
(d)
15,585‌
11,076‌
Everarc
Holdings
Ltd
(d)
92,882‌
1,205‌
Everarc
Holdings
Ltd
-
Warrants
(d)
97,671‌
25‌
Gartner
Inc
(d)
76,548‌
9,287‌
IHS
Markit
Ltd
102,174‌
7,714‌
Moody's
Corp
21,716‌
5,966‌
S&P
Global
Inc
7,522‌
2,478‌
Square
Inc
(d)
20,881‌
2,191‌
TransUnion
100,087‌
8,712‌
Verisk
Analytics
Inc
45,980‌
7,826‌
$
56,480‌
Distribution
&
Wholesale
-
3.98%
Copart
Inc
(d)
167,752‌
13,968‌
Fastenal
Co
175,718‌
7,528‌
$
21,496‌
Diversified
Financial
Services
-
1.93%
Credit
Acceptance
Corp
(d)
24,946‌
10,453‌
Electric
-
2.22%
Brookfield
Infrastructure
Partners
LP
220,654‌
9,071‌
Brookfield
Renewable
Partners
LP
60,794‌
2,912‌
$
11,983‌
Electronics
-
3.35%
Mettler
-Toledo
International
Inc
(d)
9,108‌
7,337‌
Roper
Technologies
Inc
27,735‌
10,768‌
$
18,105‌
Entertainment
-
2.83%
Liberty
Media
Corp-Liberty
Braves
-
A
Shares
(d)
5,176‌
104‌
Liberty
Media
Corp-Liberty
Braves
-
C
Shares
(d)
18,935‌
374‌
Live
Nation
Entertainment
Inc
(d)
167,625‌
7,431‌
Vail
Resorts
Inc
40,698‌
7,413‌
$
15,322‌
Hand
&
Machine
Tools
-
0.66%
Colfax
Corp
(d)
127,081‌
3,545‌
Healthcare
-
Products
-
1.28%
IDEXX
Laboratories
Inc
(d)
20,901‌
6,901‌
Home
Builders
-
2.16%
Lennar
Corp
-
A
Shares
86,908‌
5,355‌
Lennar
Corp
-
B
Shares
1,475‌
68‌
NVR
Inc
(d)
1,915‌
6,241‌
$
11,664‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
8.00%
Aon
PLC
21,695‌
$
4,178‌
Arch
Capital
Group
Ltd
(d)
263,544‌
7,551‌
Brown
&
Brown
Inc
185,125‌
7,546‌
Fidelity
National
Financial
Inc
212,087‌
6,503‌
Markel
Corp
(d)
14,313‌
13,213‌
Progressive
Corp/The
52,893‌
4,237‌
$
43,228‌
Internet
-
4.94%
VeriSign
Inc
(d)
53,963‌
11,161‌
Wix.com
Ltd
(d)
60,608‌
15,529‌
$
26,690‌
Investment
Companies
-
0.23%
Brookfield
Business
Partners
LP
12,809‌
395‌
Brookfield
Infrastructure
Corp
(e)
19,143‌
872‌
$
1,267‌
Lodging
-
2.67%
Hilton
Worldwide
Holdings
Inc
154,678‌
11,361‌
Hyatt
Hotels
Corp
61,300‌
3,083‌
$
14,444‌
Machinery
-
Diversified
-
0.13%
Cognex
Corp
11,856‌
708‌
Media
-
3.77%
Liberty
Broadband
Corp
-
A
Shares
(d)
23,522‌
2,874‌
Liberty
Broadband
Corp
-
C
Shares
(d)
63,346‌
7,853‌
Liberty
Media
Corp-Liberty
Formula
One
-
A
Shares
(d)
18,376‌
536‌
Liberty
Media
Corp-Liberty
Formula
One
-
C
Shares
(d)
129,880‌
4,119‌
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(d)
30,630‌
1,057‌
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(d)
114,199‌
3,934‌
$
20,373‌
Private
Equity
-
7.20%
Brookfield
Asset
Management
Inc
665,340‌
21,890‌
Kennedy-Wilson
Holdings
Inc
158,273‌
2,409‌
KKR
&
Co
Inc
347,588‌
10,733‌
Onex
Corp
87,192‌
3,872‌
$
38,904‌
Real
Estate
-
2.62%
Brookfield
Property
Partners
LP
77,618‌
768‌
CBRE
Group
Inc
(d)
219,778‌
9,938‌
Howard
Hughes
Corp/The
(d)
66,228‌
3,440‌
$
14,146‌
REITs
-
3.84%
Equinix
Inc
4,881‌
3,428‌
SBA
Communications
Corp
54,000‌
16,088‌
Vornado
Realty
Trust
32,458‌
1,240‌
$
20,756‌
Retail
-
10.59%
CarMax
Inc
(d)
204,296‌
18,295‌
Dollar
General
Corp
15,510‌
2,955‌
Domino's
Pizza
Inc
21,968‌
8,116‌
O'Reilly
Automotive
Inc
(d)
35,624‌
15,021‌
Restaurant
Brands
International
Inc
187,359‌
10,235‌
Ross
Stores
Inc
30,783‌
2,624‌
$
57,246‌
Semiconductors
-
1.64%
Microchip
Technology
Inc
84,081‌
8,85
6‌
Software
-
12.28%
ANSYS
Inc
(d)
36,821‌
10,742‌
Autodesk
Inc
(d)
66,955‌
16,015‌
Black
Knight
Inc
(d)
199,340‌
14,464‌
Guidewire
Software
Inc
(d)
78,070‌
8,654‌
MSCI
Inc
14,598‌
4,873‌
RealPage
Inc
(d)
103,634‌
6,737‌
Slack
Technologies
Inc
(d)
102,580‌
3,189‌
Schedule
of
Investments
MidCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
152
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Tyler
Technologies
Inc
(d)
4,836‌
$
1,678‌
$
66,352‌
Telecommunications
-
1.92%
GCI
Liberty
Inc
(d)
73,331‌
5,216‌
Motorola
Solutions
Inc
36,982‌
5,182‌
$
10,398‌
TOTAL
COMMON
STOCKS
$
541,07
2‌
Total
Investments
$
542,19
2‌
Other
Assets
and
Liabilities
-  (0.32)%
(1,75
1‌
)
TOTAL
NET
ASSETS
-
100.00%
$
540,441‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$197
or
0.04%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Sector
Percent
Financial
25.08‌%
Consumer,
Cyclical
22.23‌%
Technology
13.92‌%
Industrial
13.08‌%
Consumer,
Non-cyclical
12.27‌%
Communications
10.63‌%
Utilities
2.22‌%
Basic
Materials
0.68‌%
Money
Market
Funds
0.21‌%
Other
Assets
and
Liabilities
(0.32‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
252‌
$
97,945‌
$
97,274‌
$
923‌
$
252‌
$
97,945‌
$
97,274‌
$
923‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
3‌
$
—‌
$
—‌
$
—‌
$
3‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
Capital
Appreciation
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
153
INVESTMENT
COMPANIES
-
1.51%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.51%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
2,158,758‌
$
2,159‌
TOTAL
INVESTMENT
COMPANIES
$
2,159‌
COMMON
STOCKS
-
99.07%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
1.18%
Northrop
Grumman
Corp
3,580‌
$
1,101‌
Teledyne
Technologies
Inc
(b)
1,909‌
593‌
$
1,694‌
Apparel
-
1.93%
Deckers
Outdoor
Corp
(b)
9,278‌
1,822‌
NIKE
Inc
9,575‌
939‌
$
2,761‌
Automobile
Manufacturers
-
0.87%
PACCAR
Inc
16,584‌
1,241‌
Banks
-
3.34%
JPMorgan
Chase
&
Co
32,602‌
3,067‌
PNC
Financial
Services
Group
Inc/The
16,244‌
1,709‌
$
4,776‌
Beverages
-
2.45%
Keurig
Dr
Pepper
Inc
23,034‌
654‌
PepsiCo
Inc
21,510‌
2,845‌
$
3,499‌
Chemicals
-
1.09%
FMC
Corp
15,614‌
1,555‌
Commercial
Services
-
0.70%
PayPal
Holdings
Inc
(b)
5,774‌
1,006‌
Computers
-
5.42%
Apple
Inc
21,260‌
7,756‌
Consumer
Products
-
1.32%
Church
&
Dwight
Co
Inc
24,450‌
1,890‌
Diversified
Financial
Services
-
5.57%
Ameriprise
Financial
Inc
8,067‌
1,210‌
BlackRock
Inc
2,019‌
1,099‌
Charles
Schwab
Corp/The
37,679‌
1,271‌
Discover
Financial
Services
16,698‌
836‌
Nasdaq
Inc
7,775‌
929‌
Visa
Inc
13,583‌
2,624‌
$
7,969‌
Electric
-
3.33%
NextEra
Energy
Inc
10,586‌
2,543‌
Xcel
Energy
Inc
35,622‌
2,226‌
$
4,769‌
Electronics
-
1.91%
Honeywell
International
Inc
10,815‌
1,564‌
Roper
Technologies
Inc
3,017‌
1,171‌
$
2,735‌
Environmental
Control
-
1.06%
Republic
Services
Inc
16,696‌
1,370‌
Waste
Connections
Inc
1,555‌
146‌
$
1,516‌
Food
-
1.05%
McCormick
&
Co
Inc/MD
7,587‌
1,361‌
Tyson
Foods
Inc
2,390‌
143‌
$
1,504‌
Hand
&
Machine
Tools
-
0.52%
Snap-on
Inc
5,364‌
743‌
Healthcare
-
Products
-
4.75%
Abbott
Laboratories
14,816‌
1,355‌
Edwards
Lifesciences
Corp
(b)
11,622‌
803‌
Medtronic
PLC
14,432‌
1,323‌
Thermo
Fisher
Scientific
Inc
6,742‌
2,443‌
Varian
Medical
Systems
Inc
(b)
7,065‌
866‌
$
6,790‌
Healthcare
-
Services
-
1.99%
UnitedHealth
Group
Inc
6,469‌
1,908‌
Universal
Health
Services
Inc
10,052‌
934‌
$
2,842‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
3.24%
Chubb
Ltd
7,321‌
$
927‌
Fidelity
National
Financial
Inc
37,556‌
1,151‌
Marsh
&
McLennan
Cos
Inc
16,858‌
1,810‌
Progressive
Corp/The
9,247‌
741‌
$
4,629‌
Internet
-
10.08%
Alphabet
Inc
-
A
Shares
(b)
2,992‌
4,243‌
Amazon.com
Inc
(b)
2,510‌
6,925‌
Facebook
Inc
(b)
10,557‌
2,397‌
Netflix
Inc
(b)
1,879‌
855‌
$
14,420‌
Machinery
-
Diversified
-
0.91%
Deere
&
Co
8,293‌
1,303‌
Media
-
1.87%
Comcast
Corp
-
Class
A
38,191‌
1,489‌
Nexstar
Media
Group
Inc
3,853‌
322‌
Walt
Disney
Co/The
7,716‌
860‌
$
2,671‌
Miscellaneous
Manufacturers
-
0.49%
3M
Co
4,518‌
705‌
Oil
&
Gas
-
2.22%
Chevron
Corp
23,822‌
2,126‌
Valero
Energy
Corp
17,740‌
1,043‌
$
3,169‌
Packaging
&
Containers
-
1.04%
Ball
Corp
21,510‌
1,495‌
Pharmaceuticals
-
7.49%
Becton
Dickinson
and
Co
8,860‌
2,120‌
Bristol-Myers
Squibb
Co
29,534‌
1,737‌
DexCom
Inc
(b)
1,252‌
507‌
Johnson
&
Johnson
13,098‌
1,842‌
Merck
&
Co
Inc
32,466‌
2,510‌
Pfizer
Inc
28,001‌
916‌
Roche
Holding
AG
ADR
24,734‌
1,073‌
$
10,705‌
REITs
-
3.20%
Alexandria
Real
Estate
Equities
Inc
14,898‌
2,417‌
American
Tower
Corp
1,150‌
297‌
Extra
Space
Storage
Inc
10,294‌
951‌
Prologis
Inc
9,705‌
906‌
$
4,571‌
Retail
-
5.94%
Costco
Wholesale
Corp
6,675‌
2,024‌
Home
Depot
Inc/The
10,158‌
2,545‌
Lululemon
Athletica
Inc
(b)
6,453‌
2,013‌
Starbucks
Corp
8,941‌
658‌
Target
Corp
10,463‌
1,255‌
$
8,495‌
Semiconductors
-
5.17%
Broadcom
Inc
4,861‌
1,534‌
Lam
Research
Corp
5,373‌
1,738‌
Microchip
Technology
Inc
12,380‌
1,304‌
NVIDIA
Corp
3,137‌
1,192‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
28,722‌
1,630‌
$
7,398‌
Software
-
12.90%
Adobe
Inc
(b)
8,044‌
3,502‌
Fair
Isaac
Corp
(b)
4,910‌
2,052‌
Fidelity
National
Information
Services
Inc
17,053‌
2,287‌
Microsoft
Corp
39,881‌
8,116‌
salesforce.com
Inc
(b)
5,479‌
1,026‌
ServiceNow
Inc
(b)
3,602‌
1,459‌
$
18,442‌
Telecommunications
-
4.23%
Cisco
Systems
Inc
28,986‌
1,352‌
T-Mobile
US
Inc
(b)
22,905‌
2,386‌
T-Mobile
US
Inc
-
Rights
(b)
22,905‌
4‌
Schedule
of
Investments
Principal
Capital
Appreciation
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
154
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Telecommunications
(continued)
Verizon
Communications
Inc
41,781‌
$
2,303‌
$
6,045‌
Toys,
Games
&
Hobbies
-
0.11%
Hasbro
Inc
2,013‌
151‌
Transportation
-
1.70%
Expeditors
International
of
Washington
Inc
13,013‌
990‌
Union
Pacific
Corp
8,518‌
1,440‌
$
2,430‌
TOTAL
COMMON
STOCKS
$
141,675‌
Total
Investments
$
143,834‌
Other
Assets
and
Liabilities
-  (0.58)%
(825‌)
TOTAL
NET
ASSETS
-
100.00%
$
143,009‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (unaudited)
Sector
Percent
Technology
23.49‌%
Consumer,
Non-cyclical
19.75‌%
Communications
16.18‌%
Financial
15.35‌%
Consumer,
Cyclical
8.85‌%
Industrial
8.81‌%
Utilities
3.33‌%
Energy
2.22‌%
Money
Market
Funds
1.51‌%
Basic
Materials
1.09‌%
Other
Assets
and
Liabilities
(0.58‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,945‌
$
17,019‌
$
17,805‌
$
2,159‌
$
2,945‌
$
17,019‌
$
17,805‌
$
2,159‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
11‌
$
—‌
$
—‌
$
—‌
$
11‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
LifeTime
2010
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
155
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
45.19%
Blue
Chip
Fund
(a)
35,802‌
$
1,062‌
Core
Fixed
Income
Fund
(a)
839,846‌
8,541‌
Diversified
International
Fund
(a)
120,718‌
1,424‌
Diversified
Real
Asset
Fund
(a)
64,757‌
675‌
International
Small
Company
Fund
(a)
44,339‌
428‌
LargeCap
Growth
Fund
I
(a)
59,597‌
1,056‌
MidCap
Fund
(a)
30,326‌
890‌
MidCap
Value
Fund
I
(a)
43,827‌
532‌
SmallCap
Growth
Fund
I
(a),(b)
23,953‌
338‌
SmallCap
Value
Fund
II
(a)
23,802‌
201‌
$
15,147‌
Principal
Funds,
Inc.
Institutional
Class
-
54.84%
Bond
Market
Index
Fund
(a)
398,938‌
4,771‌
Equity
Income
Fund
(a)
22,748‌
655‌
High
Income
Fund
(a)
221,929‌
1,924‌
Inflation
Protection
Fund
(a)
156,002‌
1,418‌
LargeCap
S&P
500
Index
Fund
(a)
91,645‌
1,743‌
LargeCap
Value
Fund
III
(a)
45,045‌
647‌
Overseas
Fund
(a)
160,233‌
1,313‌
Short-Term
Income
Fund
(a)
471,802‌
5,90
6‌
$
18,37
7‌
TOTAL
INVESTMENT
COMPANIES
$
33,52
4‌
Total
Investments
$
33,52
4‌
Other
Assets
and
Liabilities
-  (0.03)%
(
8‌
)
TOTAL
NET
ASSETS
-
100.00%
$
33,516‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
71.57‌%
Domestic
Equity
Funds
21.25‌%
International
Equity
Funds
5.20‌%
Specialty
Funds
2.01‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2010
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
156
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
931‌
$
395‌
$
431‌
$
1,062‌
Bond
Market
Index
Fund
4,795‌
597‌
898‌
4,771‌
Core
Fixed
Income
Fund
7,452‌
2,042‌
1,252‌
8,541‌
Diversified
International
Fund
1,198‌
544‌
241‌
1,424‌
Diversified
Real
Asset
Fund
533‌
237‌
58‌
675‌
Equity
Income
Fund
752‌
216‌
220‌
655‌
High
Income
Fund
2,075‌
316‌
282‌
1,924‌
Inflation
Protection
Fund
1,353‌
245‌
246‌
1,418‌
International
Small
Company
Fund
390‌
162‌
75‌
428‌
LargeCap
Growth
Fund
I
907‌
392‌
406‌
1,056‌
LargeCap
S&P
500
Index
Fund
1,639‌
728‌
686‌
1,743‌
LargeCap
Value
Fund
III
759‌
209‌
231‌
647‌
MidCap
Fund
811‌
199‌
124‌
890‌
MidCap
Value
Fund
I
481‌
147‌
45‌
532‌
Overseas
Fund
1,177‌
567‌
228‌
1,313‌
Short-Term
Income
Fund
5,770‌
99
4‌
955‌
5,90
6‌
SmallCap
Growth
Fund
I
264‌
66‌
20‌
338‌
SmallCap
Value
Fund
II
218‌
62‌
45‌
201‌
$
31,505‌
$
8,11
8‌
$
6,443‌
$
33,52
4‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
71‌
$
—‌
$
96‌
Bond
Market
Index
Fund
—‌
3‌
—‌
274‌
Core
Fixed
Income
Fund
10
4‌
(11‌)
—‌
310‌
Diversified
International
Fund
—‌
5‌
—‌
(82‌)
Diversified
Real
Asset
Fund
—‌
—‌
—‌
(37‌)
Equity
Income
Fund
7‌
23‌
—‌
(116‌)
High
Income
Fund
60‌
(21‌)
—‌
(164‌)
Inflation
Protection
Fund
2‌
3‌
—‌
63‌
International
Small
Company
Fund
—‌
—‌
—‌
(49‌)
LargeCap
Growth
Fund
I
—‌
47‌
—‌
116‌
LargeCap
S&P
500
Index
Fund
—‌
83‌
—‌
(21‌)
LargeCap
Value
Fund
III
—‌
7‌
—‌
(97‌)
MidCap
Fund
—‌
23‌
—‌
(19‌)
MidCap
Value
Fund
I
—‌
—‌
—‌
(51‌)
Overseas
Fund
—‌
2‌
—‌
(205‌)
Short-Term
Income
Fund
59‌
(1‌)
—‌
98‌
SmallCap
Growth
Fund
I
—‌
—‌
—‌
28‌
SmallCap
Value
Fund
II
—‌
8‌
—‌
(42‌)
$
23
2‌
$
242‌
$
—‌
$
102‌
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2020
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
157
INVESTMENT
COMPANIES
-
100.01%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
49.61%
Blue
Chip
Fund
(a)
258,093‌
$
7,652‌
Core
Fixed
Income
Fund
(a)
3,508,571‌
35,682‌
Diversified
International
Fund
(a)
976,939‌
11,528‌
Diversified
Real
Asset
Fund
(a)
303,966‌
3,167‌
International
Small
Company
Fund
(a)
332,365‌
3,207‌
LargeCap
Growth
Fund
I
(a)
442,127‌
7,835‌
MidCap
Fund
(a)
229,052‌
6,723‌
MidCap
Value
Fund
I
(a)
343,907‌
4,172‌
SmallCap
Growth
Fund
I
(a),(b)
188,888‌
2,665‌
SmallCap
Value
Fund
II
(a)
197,069‌
1,667‌
$
84,298‌
Principal
Funds,
Inc.
Institutional
Class
-
50.40%
Bond
Market
Index
Fund
(a)
1,693,073‌
20,249‌
Equity
Income
Fund
(a)
209,645‌
6,032‌
High
Income
Fund
(a)
805,919‌
6,987‌
Inflation
Protection
Fund
(a)
753,008‌
6,845‌
LargeCap
S&P
500
Index
Fund
(a)
669,800‌
12,740‌
LargeCap
Value
Fund
III
(a)
413,246‌
5,938‌
Overseas
Fund
(a)
1,263,357‌
10,347‌
Short-Term
Income
Fund
(a)
1,317,368‌
16,493‌
$
85,631‌
TOTAL
INVESTMENT
COMPANIES
$
169,929‌
Total
Investments
$
169,929‌
Other
Assets
and
Liabilities
-  (0.01)%
(9‌)
TOTAL
NET
ASSETS
-
100.00%
$
169,920‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
57.55‌%
Domestic
Equity
Funds
32.62‌%
International
Equity
Funds
7.98‌%
Specialty
Funds
1.86‌%
Other
Assets
and
Liabilities
(0.01‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2020
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
158
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
8,557‌
$
1,675‌
$
3,672‌
$
7,652‌
Bond
Market
Index
Fund
22,996‌
3,814‌
7,863‌
20,249‌
Core
Fixed
Income
Fund
38,995‌
7,728‌
12,415‌
35,682‌
Diversified
International
Fund
11,918‌
2,327‌
1,555‌
11,528‌
Diversified
Real
Asset
Fund
3,372‌
444‌
291‌
3,167‌
Equity
Income
Fund
7,223‌
701‌
823‌
6,032‌
High
Income
Fund
9,252‌
1,282‌
2,637‌
6,987‌
Inflation
Protection
Fund
7,357‌
1,651‌
2,508‌
6,845‌
International
Small
Company
Fund
3,757‌
530‌
462‌
3,207‌
LargeCap
Growth
Fund
I
8,518‌
1,690‌
3,450‌
7,835‌
LargeCap
S&P
500
Index
Fund
15,473‌
3,108‌
5,661‌
12,740‌
LargeCap
Value
Fund
III
7,202‌
631‌
832‌
5,938‌
MidCap
Fund
7,471‌
586‌
1,036‌
6,723‌
MidCap
Value
Fund
I
4,757‌
453‌
312‌
4,172‌
Overseas
Fund
11,692‌
2,572‌
1,474‌
10,347‌
Short-Term
Income
Fund
17,212‌
4,520‌
5,512‌
16,493‌
SmallCap
Growth
Fund
I
2,512‌
204‌
177‌
2,665‌
SmallCap
Value
Fund
II
2,216‌
204‌
271‌
1,667‌
$
190,480‌
$
34,120‌
$
50,951‌
$
169,929‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
913‌
$
—‌
$
179‌
Bond
Market
Index
Fund
—‌
174‌
—‌
1,128‌
Core
Fixed
Income
Fund
497‌
28‌
—‌
1,346‌
Diversified
International
Fund
—‌
4‌
—‌
(1,166‌)
Diversified
Real
Asset
Fund
—‌
1‌
—‌
(359‌)
Equity
Income
Fund
70‌
104‌
—‌
(1,173‌)
High
Income
Fund
253‌
(337‌)
—‌
(573‌)
Inflation
Protection
Fund
11‌
3‌
—‌
342‌
International
Small
Company
Fund
—‌
(11‌)
—‌
(607‌)
LargeCap
Growth
Fund
I
—‌
579‌
—‌
498‌
LargeCap
S&P
500
Index
Fund
—‌
977‌
—‌
(1,157‌)
LargeCap
Value
Fund
III
—‌
5‌
—‌
(1,068‌)
MidCap
Fund
—‌
118‌
—‌
(416‌)
MidCap
Value
Fund
I
—‌
(2‌)
—‌
(724‌)
Overseas
Fund
—‌
(30‌)
—‌
(2,413‌)
Short-Term
Income
Fund
174‌
3‌
—‌
270‌
SmallCap
Growth
Fund
I
—‌
1‌
—‌
125‌
SmallCap
Value
Fund
II
—‌
20‌
—‌
(502‌)
$
1,005‌
$
2,550‌
$
—‌
$
(6,270‌)
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2030
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
159
INVESTMENT
COMPANIES
-
100.01%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
57.38%
Blue
Chip
Fund
(a)
216,774‌
$
6,427‌
Core
Fixed
Income
Fund
(a)
3,228,773‌
32,837‌
Diversified
International
Fund
(a)
1,386,858‌
16,365‌
Diversified
Real
Asset
Fund
(a)
364,523‌
3,798‌
International
Small
Company
Fund
(a)
530,145‌
5,116‌
LargeCap
Growth
Fund
I
(a)
990,184‌
17,546‌
MidCap
Fund
(a)
339,742‌
9,971‌
MidCap
Value
Fund
I
(a)
544,420‌
6,604‌
Origin
Emerging
Markets
Fund
(a)
331,607‌
3,668‌
SmallCap
Growth
Fund
I
(a),(b)
287,307‌
4,054‌
SmallCap
Value
Fund
II
(a)
313,973‌
2,656‌
$
109,042‌
Principal
Funds,
Inc.
Institutional
Class
-
42.63%
Bond
Market
Index
Fund
(a)
1,440,093‌
17,224‌
Equity
Income
Fund
(a)
163,677‌
4,709‌
High
Income
Fund
(a)
714,190‌
6,192‌
Inflation
Protection
Fund
(a)
442,517‌
4,022‌
LargeCap
S&P
500
Index
Fund
(a)
1,062,448‌
20,208‌
LargeCap
Value
Fund
III
(a)
956,275‌
13,742‌
Overseas
Fund
(a)
1,820,755‌
14,912‌
$
81,009‌
TOTAL
INVESTMENT
COMPANIES
$
190,051‌
Total
Investments
$
190,051‌
Other
Assets
and
Liabilities
-  (0.01)%
(10‌)
TOTAL
NET
ASSETS
-
100.00%
$
190,041‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
45.21‌%
Fixed
Income
Funds
40.33‌%
International
Equity
Funds
12.47‌%
Specialty
Funds
2.00‌%
Other
Assets
and
Liabilities
(0.01‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2030
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
160
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
5,396‌
$
1,269‌
$
947‌
$
6,427‌
Bond
Market
Index
Fund
17,010‌
4,213‌
4,985‌
17,224‌
Core
Fixed
Income
Fund
31,533‌
8,928‌
8,761‌
32,837‌
Diversified
International
Fund
14,625‌
4,158‌
1,143‌
16,365‌
Diversified
Real
Asset
Fund
3,362‌
914‌
127‌
3,798‌
Equity
Income
Fund
4,868‌
966‌
407‌
4,709‌
High
Income
Fund
7,582‌
1,202‌
1,837‌
6,192‌
Inflation
Protection
Fund
3,828‌
1,166‌
1,150‌
4,022‌
International
Small
Company
Fund
4,995‌
1,278‌
368‌
5,116‌
LargeCap
Growth
Fund
I
15,626‌
3,660‌
3,699‌
17,546‌
LargeCap
S&P
500
Index
Fund
19,747‌
4,777‌
3,978‌
20,208‌
LargeCap
Value
Fund
III
13,955‌
2,705‌
803‌
13,742‌
MidCap
Fund
9,463‌
1,663‌
813‌
9,971‌
MidCap
Value
Fund
I
6,396‌
1,357‌
180‌
6,604‌
Origin
Emerging
Markets
Fund
3,159‌
885‌
250‌
3,668‌
Overseas
Fund
14,418‌
4,388‌
1,072‌
14,912‌
SmallCap
Growth
Fund
I
3,317‌
603‌
85‌
4,054‌
SmallCap
Value
Fund
II
2,898‌
585‌
184‌
2,656‌
$
182,178‌
$
44,717‌
$
30,789‌
$
190,051‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
8‌
$
—‌
$
701‌
Bond
Market
Index
Fund
—‌
42‌
—‌
944‌
Core
Fixed
Income
Fund
421‌
(23‌)
—‌
1,160‌
Diversified
International
Fund
—‌
(3‌)
—‌
(1,272‌)
Diversified
Real
Asset
Fund
—‌
—‌
—‌
(351‌)
Equity
Income
Fund
52‌
6‌
—‌
(724‌)
High
Income
Fund
208‌
(216‌)
—‌
(539‌)
Inflation
Protection
Fund
5‌
1‌
—‌
177‌
International
Small
Company
Fund
—‌
2‌
—‌
(791‌)
LargeCap
Growth
Fund
I
—‌
83‌
—‌
1,876‌
LargeCap
S&P
500
Index
Fund
—‌
18‌
—‌
(356‌)
LargeCap
Value
Fund
III
—‌
(1‌)
—‌
(2,114‌)
MidCap
Fund
—‌
27‌
—‌
(369‌)
MidCap
Value
Fund
I
—‌
—‌
—‌
(969‌)
Origin
Emerging
Markets
Fund
—‌
—‌
—‌
(126‌)
Overseas
Fund
—‌
(4‌)
—‌
(2,818‌)
SmallCap
Growth
Fund
I
—‌
—‌
—‌
219‌
SmallCap
Value
Fund
II
—‌
1‌
—‌
(644‌)
$
686‌
$
(59‌)
$
—‌
$
(5,996‌)
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2040
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
161
INVESTMENT
COMPANIES
-
100.01%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
52.65%
Blue
Chip
Fund
(a)
118,263‌
$
3,507‌
Core
Fixed
Income
Fund
(a)
847,936‌
8,624‌
Diversified
International
Fund
(a)
736,112‌
8,686‌
International
Small
Company
Fund
(a)
262,742‌
2,535‌
LargeCap
Growth
Fund
I
(a)
546,567‌
9,685‌
MidCap
Value
Fund
I
(a)
307,393‌
3,729‌
Origin
Emerging
Markets
Fund
(a)
237,477‌
2,626‌
Real
Estate
Securities
Fund
(a)
79,231‌
1,881‌
SmallCap
Growth
Fund
I
(a),(b)
143,903‌
2,030‌
SmallCap
Value
Fund
II
(a)
161,231‌
1,364‌
$
44,667‌
Principal
Funds,
Inc.
Institutional
Class
-
47.36%
Bond
Market
Index
Fund
(a)
380,574‌
4,552‌
Equity
Income
Fund
(a)
82,601‌
2,377‌
High
Income
Fund
(a)
262,030‌
2,272‌
LargeCap
S&P
500
Index
Fund
(a)
587,876‌
11,181‌
LargeCap
Value
Fund
III
(a)
488,647‌
7,022‌
MidCap
Growth
Fund
III
(a),(b)
398,647‌
4,931‌
Overseas
Fund
(a)
957,398‌
7,841‌
$
40,176‌
TOTAL
INVESTMENT
COMPANIES
$
84,843‌
Total
Investments
$
84,843‌
Other
Assets
and
Liabilities
-  (0.01)%
(9‌)
TOTAL
NET
ASSETS
-
100.00%
$
84,834‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
56.23‌%
Fixed
Income
Funds
28.46‌%
International
Equity
Funds
15.32‌%
Other
Assets
and
Liabilities
(0.01‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
2,986‌
$
428‌
$
280‌
$
3,507‌
Bond
Market
Index
Fund
4,930‌
613‌
1,266‌
4,552‌
Core
Fixed
Income
Fund
9,037‌
1,411‌
2,128‌
8,624‌
Diversified
International
Fund
8,306‌
1,573‌
495‌
8,686‌
Equity
Income
Fund
2,706‌
336‌
268‌
2,377‌
High
Income
Fund
2,574‌
413‌
472‌
2,272‌
International
Small
Company
Fund
2,658‌
448‌
158‌
2,535‌
LargeCap
Growth
Fund
I
8,726‌
1,252‌
1,325‌
9,685‌
LargeCap
S&P
500
Index
Fund
11,042‌
1,631‌
1,300‌
11,181‌
LargeCap
Value
Fund
III
7,884‌
927‌
602‌
7,022‌
MidCap
Growth
Fund
III
4,465‌
505‌
275‌
4,931‌
MidCap
Value
Fund
I
4,057‌
509‌
230‌
3,729‌
Origin
Emerging
Markets
Fund
2,398‌
459‌
137‌
2,626‌
Overseas
Fund
8,152‌
1,734‌
491‌
7,841‌
Real
Estate
Securities
Fund
2,015‌
276‌
119‌
1,881‌
SmallCap
Growth
Fund
I
1,837‌
206‌
111‌
2,030‌
SmallCap
Value
Fund
II
1,637‌
201‌
107‌
1,364‌
$
85,410‌
$
12,922‌
$
9,764‌
$
84,843‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
6‌
$
—‌
$
367‌
Bond
Market
Index
Fund
—‌
10‌
—‌
265‌
Core
Fixed
Income
Fund
115‌
(19‌)
—‌
323‌
Diversified
International
Fund
—‌
3‌
—‌
(701‌)
Equity
Income
Fund
26‌
3‌
—‌
(400‌)
High
Income
Fund
72‌
(23‌)
—‌
(220‌)
International
Small
Company
Fund
—‌
—‌
—‌
(413‌)
LargeCap
Growth
Fund
I
—‌
41‌
—‌
991‌
LargeCap
S&P
500
Index
Fund
—‌
14‌
—‌
(206‌)
LargeCap
Value
Fund
III
—‌
(1‌)
—‌
(1,186‌)
MidCap
Growth
Fund
III
—‌
—‌
—‌
236‌
MidCap
Value
Fund
I
—‌
—‌
—‌
(607‌)
Origin
Emerging
Markets
Fund
—‌
—‌
—‌
(94‌)
Overseas
Fund
—‌
—‌
—‌
(1,554‌)
Real
Estate
Securities
Fund
18‌
—‌
—‌
(291‌)
SmallCap
Growth
Fund
I
—‌
—‌
—‌
98‌
SmallCap
Value
Fund
II
—‌
—‌
—‌
(367‌)
$
231‌
$
34‌
$
—‌
$
(3,759‌)
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2050
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
162
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
52.46%
Blue
Chip
Fund
(a)
58,954‌
$
1,748‌
Core
Fixed
Income
Fund
(a)
213,629‌
2,173‌
Diversified
International
Fund
(a)
373,381‌
4,406‌
International
Small
Company
Fund
(a)
133,551‌
1,289‌
LargeCap
Growth
Fund
I
(a)
276,342‌
4,897‌
MidCap
Value
Fund
I
(a)
158,483‌
1,922‌
Origin
Emerging
Markets
Fund
(a)
124,143‌
1,373‌
Real
Estate
Securities
Fund
(a)
36,121‌
857‌
SmallCap
Growth
Fund
I
(a),(b)
74,324‌
1,049‌
SmallCap
Value
Fund
II
(a)
85,408‌
722‌
$
20,436‌
Principal
Funds,
Inc.
Institutional
Class
-
47.56%
Bond
Market
Index
Fund
(a)
76,740‌
918‌
Equity
Income
Fund
(a)
41,707‌
1,200‌
High
Income
Fund
(a)
68,928‌
597‌
LargeCap
S&P
500
Index
Fund
(a)
299,518‌
5,697‌
LargeCap
Value
Fund
III
(a)
250,503‌
3,600‌
MidCap
Growth
Fund
III
(a),(b)
205,490‌
2,542‌
Overseas
Fund
(a)
485,448‌
3,976‌
$
18,530‌
TOTAL
INVESTMENT
COMPANIES
$
38,966‌
Total
Investments
$
38,966‌
Other
Assets
and
Liabilities
-  (0.02)%
(9‌)
TOTAL
NET
ASSETS
-
100.00%
$
38,957‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
62.19‌%
Fixed
Income
Funds
20.78‌%
International
Equity
Funds
17.05‌%
Other
Assets
and
Liabilities
(0.02‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,465‌
$
171‌
$
63‌
$
1,748‌
Bond
Market
Index
Fund
1,214‌
140‌
495‌
918‌
Core
Fixed
Income
Fund
2,437‌
322‌
662‌
2,173‌
Diversified
International
Fund
4,128‌
784‌
140‌
4,406‌
Equity
Income
Fund
1,339‌
152‌
88‌
1,200‌
High
Income
Fund
773‌
116‌
223‌
597‌
International
Small
Company
Fund
1,294‌
253‌
44‌
1,289‌
LargeCap
Growth
Fund
I
4,355‌
494‌
444‌
4,897‌
LargeCap
S&P
500
Index
Fund
5,567‌
656‌
390‌
5,697‌
LargeCap
Value
Fund
III
3,976‌
423‌
180‌
3,600‌
MidCap
Growth
Fund
III
2,269‌
231‌
76‌
2,542‌
MidCap
Value
Fund
I
2,065‌
241‌
65‌
1,922‌
Origin
Emerging
Markets
Fund
1,225‌
239‌
40‌
1,373‌
Overseas
Fund
4,064‌
853‌
139‌
3,976‌
Real
Estate
Securities
Fund
909‌
113‌
31‌
857‌
SmallCap
Growth
Fund
I
941‌
95‌
36‌
1,049‌
SmallCap
Value
Fund
II
866‌
95‌
41‌
722‌
$
38,887‌
$
5,378‌
$
3,157‌
$
38,966‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
—‌
$
—‌
$
175‌
Bond
Market
Index
Fund
—‌
4‌
—‌
55‌
Core
Fixed
Income
Fund
29‌
(6‌)
—‌
82‌
Diversified
International
Fund
—‌
—‌
—‌
(366‌)
Equity
Income
Fund
14‌
1‌
—‌
(204‌)
High
Income
Fund
19‌
(5‌)
—‌
(64‌)
International
Small
Company
Fund
—‌
—‌
—‌
(214‌)
LargeCap
Growth
Fund
I
—‌
13‌
—‌
479‌
LargeCap
S&P
500
Index
Fund
—‌
5‌
—‌
(141‌)
LargeCap
Value
Fund
III
—‌
—‌
—‌
(619‌)
MidCap
Growth
Fund
III
—‌
—‌
—‌
118‌
MidCap
Value
Fund
I
—‌
—‌
—‌
(319‌)
Origin
Emerging
Markets
Fund
—‌
—‌
—‌
(51‌)
Overseas
Fund
—‌
—‌
—‌
(802‌)
Real
Estate
Securities
Fund
8‌
—‌
—‌
(134‌)
SmallCap
Growth
Fund
I
—‌
—‌
—‌
49‌
SmallCap
Value
Fund
II
—‌
—‌
—‌
(198‌)
$
70‌
$
12‌
$
—‌
$
(2,154‌
)
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2060
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
163
INVESTMENT
COMPANIES
-
100.09%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
52.02%
Blue
Chip
Fund
(a)
13,609‌
$
404‌
Core
Fixed
Income
Fund
(a)
23,554‌
240‌
Diversified
International
Fund
(a)
87,113‌
1,028‌
International
Small
Company
Fund
(a)
31,345‌
302‌
LargeCap
Growth
Fund
I
(a)
63,276‌
1,121‌
MidCap
Value
Fund
I
(a)
37,370‌
453‌
Origin
Emerging
Markets
Fund
(a)
31,176‌
345‌
Real
Estate
Securities
Fund
(a)
7,950‌
189‌
SmallCap
Growth
Fund
I
(a),(b)
17,462‌
246‌
SmallCap
Value
Fund
II
(a)
20,259‌
171‌
$
4,499‌
Principal
Funds,
Inc.
Institutional
Class
-
48.07%
Bond
Market
Index
Fund
(a)
10,347‌
124‌
Equity
Income
Fund
(a)
9,806‌
282‌
High
Income
Fund
(a)
10,763‌
94‌
LargeCap
S&P
500
Index
Fund
(a)
68,308‌
1,299‌
LargeCap
Value
Fund
III
(a)
57,985‌
833‌
MidCap
Growth
Fund
III
(a),(b)
48,164‌
596‌
Overseas
Fund
(a)
113,454‌
929‌
$
4,157‌
TOTAL
INVESTMENT
COMPANIES
$
8,656‌
Total
Investments
$
8,656‌
Other
Assets
and
Liabilities
-  (0.09)%
(8‌)
TOTAL
NET
ASSETS
-
100.00%
$
8,648‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
64.68‌%
International
Equity
Funds
18.22‌%
Fixed
Income
Funds
17.19‌%
Other
Assets
and
Liabilities
(0.09‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
317‌
$
116‌
$
64‌
$
404‌
Bond
Market
Index
Fund
163‌
32‌
78‌
124‌
Core
Fixed
Income
Fund
267‌
53‌
89‌
240‌
Diversified
International
Fund
930‌
410‌
221‌
1,028‌
Equity
Income
Fund
294‌
109‌
71‌
282‌
High
Income
Fund
128‌
29‌
52‌
94‌
International
Small
Company
Fund
285‌
137‌
68‌
302‌
LargeCap
Growth
Fund
I
932‌
318‌
228‌
1,121‌
LargeCap
S&P
500
Index
Fund
1,194‌
424‌
274‌
1,299‌
LargeCap
Value
Fund
III
864‌
318‌
199‌
833‌
MidCap
Growth
Fund
III
497‌
182‌
106‌
596‌
MidCap
Value
Fund
I
462‌
177‌
106‌
453‌
Origin
Emerging
Markets
Fund
296‌
132‌
69‌
345‌
Overseas
Fund
918‌
423‌
220‌
929‌
Real
Estate
Securities
Fund
190‌
77‌
45‌
189‌
SmallCap
Growth
Fund
I
207‌
73‌
44‌
246‌
SmallCap
Value
Fund
II
192‌
73‌
46‌
171‌
$
8,136‌
$
3,083‌
$
1,980‌
$
8,656‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
—‌
$
—‌
$
35‌
Bond
Market
Index
Fund
—‌
—‌
—‌
7‌
Core
Fixed
Income
Fund
4‌
—‌
—‌
9‌
Diversified
International
Fund
—‌
(7‌)
—‌
(84‌)
Equity
Income
Fund
3‌
(2‌)
—‌
(48‌)
High
Income
Fund
3‌
(3‌)
—‌
(8‌)
International
Small
Company
Fund
—‌
(4‌)
—‌
(48‌)
LargeCap
Growth
Fund
I
—‌
1‌
—‌
98‌
LargeCap
S&P
500
Index
Fund
—‌
—‌
—‌
(45‌)
LargeCap
Value
Fund
III
—‌
(8‌)
—‌
(142‌)
MidCap
Growth
Fund
III
—‌
(1‌)
—‌
24‌
MidCap
Value
Fund
I
—‌
(6‌)
—‌
(74‌)
Origin
Emerging
Markets
Fund
—‌
(1‌)
—‌
(13‌)
Overseas
Fund
—‌
(15‌)
—‌
(177‌)
Real
Estate
Securities
Fund
2‌
(1‌)
—‌
(32‌)
SmallCap
Growth
Fund
I
—‌
—‌
—‌
10‌
SmallCap
Value
Fund
II
—‌
(3‌)
—‌
(45‌)
$
12‌
$
(50‌)
$
—‌
$
(533‌)
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
164
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
42.29%
Blue
Chip
Fund
(a)
37,828‌
$
1,121‌
Core
Fixed
Income
Fund
(a)
729,687‌
7,421‌
Diversified
International
Fund
(a)
67,875‌
801‌
Diversified
Real
Asset
Fund
(a)
58,945‌
614‌
International
Small
Company
Fund
(a)
24,993‌
241‌
MidCap
Fund
(a)
29,597‌
869‌
SmallCap
Growth
Fund
I
(a),(b)
14,235‌
201‌
SmallCap
Value
Fund
II
(a)
15,130‌
128‌
$
11,396‌
Principal
Funds,
Inc.
Institutional
Class
-
57.74%
Bond
Market
Index
Fund
(a)
359,771‌
4,303‌
Equity
Income
Fund
(a)
27,380‌
788‌
High
Income
Fund
(a)
205,916‌
1,785‌
Inflation
Protection
Fund
(a)
135,362‌
1,230‌
LargeCap
S&P
500
Index
Fund
(a)
51,033‌
971‌
Overseas
Fund
(a)
89,586‌
734‌
Short-Term
Income
Fund
(a)
458,851‌
5,745‌
$
15,556‌
TOTAL
INVESTMENT
COMPANIES
$
26,952‌
Total
Investments
$
26,952‌
Other
Assets
and
Liabilities
-  (0.03)%
(9‌)
TOTAL
NET
ASSETS
-
100.00%
$
26,943‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary  (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
79.00‌%
Domestic
Equity
Funds
15.14‌%
International
Equity
Funds
3.61‌%
Specialty
Funds
2.28‌%
Other
Assets
and
Liabilities
(0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,077‌
$
574‌
$
708‌
$
1,121‌
Bond
Market
Index
Fund
4,378‌
982‌
1,311‌
4,303‌
Core
Fixed
Income
Fund
6,851‌
2,210‌
1,910‌
7,421‌
Diversified
International
Fund
737‌
405‌
284‌
801‌
Diversified
Real
Asset
Fund
501‌
293‌
139‌
614‌
Equity
Income
Fund
920‌
379‌
389‌
788‌
High
Income
Fund
1,971‌
507‌
518‌
1,785‌
Inflation
Protection
Fund
1,203‌
330‌
361‌
1,230‌
International
Small
Company
Fund
242‌
123‌
92‌
241‌
LargeCap
S&P
500
Index
Fund
980‌
548‌
577‌
971‌
MidCap
Fund
798‌
305‌
227‌
869‌
Overseas
Fund
730‌
413‌
274‌
734‌
Short-Term
Income
Fund
5,599‌
1,605‌
1,557‌
5,745‌
SmallCap
Growth
Fund
I
155‌
59‌
28‌
201‌
SmallCap
Value
Fund
II
143‌
59‌
49‌
128‌
$
26,285‌
$
8,792‌
$
8,424‌
$
26,952‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
83‌
$
—‌
$
95‌
Bond
Market
Index
Fund
—‌
4‌
—‌
250‌
Core
Fixed
Income
Fund
93‌
(5‌)
—‌
275‌
Diversified
International
Fund
—‌
4‌
—‌
(61‌)
Diversified
Real
Asset
Fund
—‌
(1‌)
—‌
(40‌)
Equity
Income
Fund
9‌
(1‌)
—‌
(121‌)
High
Income
Fund
56‌
(19‌)
—‌
(156‌)
Inflation
Protection
Fund
2‌
1‌
—‌
57‌
International
Small
Company
Fund
—‌
(2‌)
—‌
(30‌)
LargeCap
S&P
500
Index
Fund
—‌
23‌
—‌
(3‌)
MidCap
Fund
—‌
8‌
—‌
(15‌)
Overseas
Fund
—‌
3‌
—‌
(138‌)
Short-Term
Income
Fund
57‌
—‌
—‌
98‌
SmallCap
Growth
Fund
I
—‌
—‌
—‌
15‌
SmallCap
Value
Fund
II
—‌
1‌
—‌
(26‌)
$
217‌
$
99‌
$
—‌
$
200‌
Amounts
in
thousands.
Schedule
of
Investments
Real
Estate
Securities
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
165
INVESTMENT
COMPANIES
-
0.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.03%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
41,532‌
$
42‌
TOTAL
INVESTMENT
COMPANIES
$
42‌
COMMON
STOCKS
-
99.49%
Shares
Held
Value
(000's)
Lodging
-
0.70%
Choice
Hotels
International
Inc
7,910‌
$
624‌
Hilton
Worldwide
Holdings
Inc
3,969‌
292‌
$
916‌
REITs
-
98.79%
Alexandria
Real
Estate
Equities
Inc
27,579‌
4,475‌
American
Assets
Trust
Inc
25,911‌
721‌
American
Campus
Communities
Inc
11,270‌
394‌
American
Homes
4
Rent
197,098‌
5,302‌
American
Tower
Corp
15,245‌
3,941‌
Apartment
Investment
and
Management
Co
76,197‌
2,868‌
AvalonBay
Communities
Inc
54,838‌
8,480‌
Boston
Properties
Inc
29,191‌
2,638‌
Brandywine
Realty
Trust
61,568‌
671‌
Camden
Property
Trust
23,443‌
2,139‌
CoreSite
Realty
Corp
16,756‌
2,029‌
Cousins
Properties
Inc
85,229‌
2,542‌
CubeSmart
72,374‌
1,953‌
CyrusOne
Inc
30,195‌
2,197‌
DiamondRock
Hospitality
Co
92,435‌
511‌
Digital
Realty
Trust
Inc
6,933‌
985‌
Equinix
Inc
18,469‌
12,971‌
Equity
LifeStyle
Properties
Inc
45,850‌
2,865‌
Equity
Residential
32,218‌
1,895‌
Essential
Properties
Realty
Trust
Inc
72,265‌
1,072‌
Essex
Property
Trust
Inc
20,803‌
4,767‌
Extra
Space
Storage
Inc
31,520‌
2,912‌
First
Industrial
Realty
Trust
Inc
34,463‌
1,325‌
Healthcare
Trust
of
America
Inc
157,934‌
4,188‌
Healthpeak
Properties
Inc
89,337‌
2,462‌
Invitation
Homes
Inc
275,759‌
7,592‌
Kilroy
Realty
Corp
30,543‌
1,793‌
Park
Hotels
&
Resorts
Inc
106,360‌
1,052‌
Prologis
Inc
152,937‌
14,274‌
PS
Business
Parks
Inc
1,385‌
183‌
Public
Storage
6,391‌
1,226‌
Regency
Centers
Corp
48,485‌
2,225‌
Rexford
Industrial
Realty
Inc
46,253‌
1,916‌
Sabra
Health
Care
REIT
Inc
114,912‌
1,658‌
Saul
Centers
Inc
14,445‌
466‌
Simon
Property
Group
Inc
19,261‌
1,317‌
STORE
Capital
Corp
141,972‌
3,380‌
Sun
Communities
Inc
32,055‌
4,349‌
Taubman
Centers
Inc
7,033‌
266‌
Terreno
Realty
Corp
54,190‌
2,853‌
VICI
Properties
Inc
107,614‌
2,173‌
Welltower
Inc
111,496‌
5,770‌
Weyerhaeuser
Co
32,160‌
722‌
$
129,518‌
TOTAL
COMMON
STOCKS
$
130,434‌
Total
Investments
$
130,476‌
Other
Assets
and
Liabilities
-  0.48
%
633‌
TOTAL
NET
ASSETS
-
100.00%
$
131,109‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Sector
Percent
Financial
98.79‌%
Consumer,
Cyclical
0.70‌%
Money
Market
Funds
0.03‌%
Other
Assets
and
Liabilities
0.48‌%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Real
Estate
Securities
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
166
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,130‌
$
12,836‌
$
13,924‌
$
42‌
$
1,130‌
$
12,836‌
$
13,924‌
$
42‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
3‌
$
—‌
$
—‌
$
—‌
$
3‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
Schedule
of
Investments
SAM
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
167
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.78%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
11,310,294‌
$
11,310‌
Principal
Exchange-Traded
Funds
-
20.44%
Principal
Active
Global
Dividend
Income
ETF
(
a)
1,219,500‌
32,042‌
Principal
Active
Income
ETF
(
a)
249,900‌
9,028‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
160,200‌
4,289‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
2,304,200‌
69,243‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
544,600‌
14,888‌
$
129,490‌
Principal
Funds,
Inc.
Class
R-6
-
49.43%
Blue
Chip
Fund
(
a)
2,077,334‌
61,593‌
Core
Fixed
Income
Fund
(
a)
7,513,863‌
76,416‌
Diversified
International
Fund
(
a)
6,025,324‌
71,099‌
Diversified
Real
Asset
Fund
(
a)
1,795,161‌
18,706‌
Edge
MidCap
Fund
(
a)
1,803,546‌
24,835‌
Global
Real
Estate
Securities
Fund
(
a)
1,895,052‌
16,260‌
High
Yield
Fund
(
a)
1,368,901‌
9,158‌
International
Small
Company
Fund
(
a)
870,682‌
8,402‌
Origin
Emerging
Markets
Fund
(
a)
835,220‌
9,237‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
1,786,713‌
17,545‌
$
313,251‌
Principal
Funds,
Inc.
Institutional
Class
-
9.38%
Inflation
Protection
Fund
(
a)
1,043,882‌
9,489‌
Short-Term
Income
Fund
(
a)
3,988,060‌
49,930‌
$
59,419‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
18.99%
Equity
Income
Account
(
a)
3,198,282‌
76,919‌
Government
&
High
Quality
Bond
Account
(
a)
4,321,018‌
43,426‌
$
120,345‌
TOTAL
INVESTMENT
COMPANIES
$
633,815‌
Total
Investments
$
633,815‌
Other
Assets
and
Liabilities
-  (
0.02)%
(156‌)
TOTAL
NET
ASSETS
-
100.00%
$
633,659‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
45.82‌%
Domestic
Equity
Funds
39.06‌%
International
Equity
Funds
10.41‌%
Specialty
Funds
2.95‌%
Money
Market
Funds
1.78‌%
Other
Assets
and
Liabilities
(
0.02‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
168
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
64,076‌
$
92‌
$
8,747‌
$
61,593‌
Core
Fixed
Income
Fund
84,277‌
1,568‌
12,232‌
76,416‌
Diversified
International
Fund
82,310‌
276‌
4,802‌
71,099‌
Diversified
Real
Asset
Fund
22,012‌
106‌
1,137‌
18,706‌
Edge
MidCap
Fund
29,239‌
124‌
1,353‌
24,835‌
Equity
Income
Account
92,733‌
311‌
2,833‌
76,919‌
Global
Real
Estate
Securities
Fund
20,186‌
135‌
610‌
16,260‌
Government
&
High
Quality
Bond
Account
46,640‌
486‌
4,808‌
43,426‌
High
Yield
Fund
10,183‌
462‌
796‌
9,158‌
Inflation
Protection
Fund
10,145‌
65‌
1,205‌
9,489‌
International
Small
Company
Fund
10,223‌
59‌
339‌
8,402‌
Origin
Emerging
Markets
Fund
10,362‌
35‌
721‌
9,237‌
Principal
Active
Global
Dividend
Income
ETF
36,652‌
—‌
—‌
32,042‌
Principal
Active
Income
ETF
9,639‌
605‌
—‌
9,028‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
2,721‌
9,193‌
604‌
11,310‌
Principal
Investment
Grade
Corporate
Active
ETF
5,329‌
—‌
1,198‌
4,289‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
72,121‌
—‌
—‌
69,243‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
17,732‌
—‌
—‌
14,888‌
Short-Term
Income
Fund
53,153‌
856‌
5,000‌
49,930‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
18,459‌
663‌
522‌
17,545‌
$
698,192‌
$
15,036‌
$
46,907‌
$
633,815‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
1,223‌
$
—‌
$
4,949‌
Core
Fixed
Income
Fund
1,057‌
61‌
—‌
2,742‌
Diversified
International
Fund
—‌
(8‌)
—‌
(6,677‌)
Diversified
Real
Asset
Fund
—‌
(55‌)
—‌
(2,220‌)
Edge
MidCap
Fund
—‌
(96‌)
—‌
(3,079‌)
Equity
Income
Account
—‌
86‌
—‌
(13,378‌)
Global
Real
Estate
Securities
Fund
28‌
(52‌)
—‌
(3,399‌)
Government
&
High
Quality
Bond
Account
—‌
(9‌)
—‌
1,117‌
High
Yield
Fund
261‌
(22‌)
—‌
(669‌)
Inflation
Protection
Fund
13‌
28‌
—‌
456‌
International
Small
Company
Fund
—‌
(10‌)
—‌
(1,531‌)
Origin
Emerging
Markets
Fund
—‌
(26‌)
—‌
(413‌)
Principal
Active
Global
Dividend
Income
ETF
164‌
—‌
—‌
(4,610‌)
Principal
Active
Income
ETF
192‌
—‌
—‌
(1,216‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
15‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
67‌
90‌
—‌
68‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
338‌
—‌
—‌
(2,878‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
43‌
—‌
—‌
(2,844‌)
Short-Term
Income
Fund
521‌
14‌
—‌
907‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
414‌
(46‌)
—‌
(1,009‌)
$
3,113‌
$
1,178‌
$
—‌
$
(33,684‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
169
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.86%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
3,283,360‌
$
3,283‌
Principal
Exchange-Traded
Funds
-
13.83%
Principal
Active
Global
Dividend
Income
ETF
(
a)
133,000‌
3,495‌
Principal
Active
Income
ETF
(
a)
132,100‌
4,772‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
65,800‌
1,762‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
396,800‌
11,924‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
91,200‌
2,493‌
$
24,446‌
Principal
Funds,
Inc.
Class
R-6
-
51.63%
Blue
Chip
Fund
(
a)
412,458‌
12,229‌
Core
Fixed
Income
Fund
(
a)
3,170,670‌
32,246‌
Diversified
International
Fund
(
a)
1,198,984‌
14,148‌
Diversified
Real
Asset
Fund
(
a)
441,940‌
4,605‌
Edge
MidCap
Fund
(
a)
363,895‌
5,011‌
Global
Diversified
Income
Fund
(
a)
380,941‌
4,560‌
Global
Real
Estate
Securities
Fund
(
a)
415,424‌
3,564‌
High
Yield
Fund
(
a)
591,143‌
3,955‌
International
Small
Company
Fund
(
a)
169,496‌
1,636‌
Origin
Emerging
Markets
Fund
(
a)
161,550‌
1,787‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
769,585‌
7,557‌
$
91,298‌
Principal
Funds,
Inc.
Institutional
Class
-
13.98%
Inflation
Protection
Fund
(
a)
489,790‌
4,452‌
Short-Term
Income
Fund
(
a)
1,619,275‌
20,273‌
$
24,725‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
18.73%
Equity
Income
Account
(
a)
611,317‌
14,702‌
Government
&
High
Quality
Bond
Account
(
a)
1,832,491‌
18,417‌
$
33,119‌
TOTAL
INVESTMENT
COMPANIES
$
176,871‌
Total
Investments
$
176,871‌
Other
Assets
and
Liabilities
-  (
0.03)%
(49‌)
TOTAL
NET
ASSETS
-
100.00%
$
176,822‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
60.85‌%
Domestic
Equity
Funds
26.21‌%
International
Equity
Funds
5.93‌%
Specialty
Funds
5.18‌%
Money
Market
Funds
1.86‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
170
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
12,479‌
$
166‌
$
1,644‌
$
12,229‌
Core
Fixed
Income
Fund
34,488‌
1,596‌
5,005‌
32,246‌
Diversified
International
Fund
15,831‌
423‌
821‌
14,148‌
Diversified
Real
Asset
Fund
5,408‌
107‌
350‌
4,605‌
Edge
MidCap
Fund
5,620‌
199‌
209‌
5,011‌
Equity
Income
Account
17,198‌
626‌
647‌
14,702‌
Global
Diversified
Income
Fund
5,124‌
349‌
226‌
4,560‌
Global
Real
Estate
Securities
Fund
4,290‌
195‌
153‌
3,564‌
Government
&
High
Quality
Bond
Account
19,609‌
779‌
2,438‌
18,417‌
High
Yield
Fund
4,201‌
321‌
265‌
3,955‌
Inflation
Protection
Fund
4,712‌
190‌
678‌
4,452‌
International
Small
Company
Fund
2,003‌
15‌
85‌
1,636‌
Origin
Emerging
Markets
Fund
2,005‌
29‌
159‌
1,787‌
Principal
Active
Global
Dividend
Income
ETF
3,997‌
—‌
—‌
3,495‌
Principal
Active
Income
ETF
5,199‌
216‌
—‌
4,772‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
580‌
2,920‌
217‌
3,283‌
Principal
Investment
Grade
Corporate
Active
ETF
1,906‌
—‌
201‌
1,762‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
12,420‌
—‌
—‌
11,924‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
2,969‌
—‌
—‌
2,493‌
Short-Term
Income
Fund
21,442‌
938‌
2,471‌
20,273‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
7,903‌
569‌
431‌
7,557‌
$
189,384‌
$
9,638‌
$
16,000‌
$
176,871‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
91‌
$
—‌
$
1,137‌
Core
Fixed
Income
Fund
442‌
(30‌)
—‌
1,197‌
Diversified
International
Fund
—‌
(4‌)
—‌
(1,281‌)
Diversified
Real
Asset
Fund
—‌
(16‌)
—‌
(544‌)
Edge
MidCap
Fund
—‌
(8‌)
—‌
(591‌)
Equity
Income
Account
—‌
12‌
—‌
(2,487‌)
Global
Diversified
Income
Fund
118‌
(29‌)
—‌
(658‌)
Global
Real
Estate
Securities
Fund
6‌
(31‌)
—‌
(737‌)
Government
&
High
Quality
Bond
Account
—‌
(16‌)
—‌
483‌
High
Yield
Fund
112‌
(21‌)
—‌
(281‌)
Inflation
Protection
Fund
6‌
14‌
—‌
214‌
International
Small
Company
Fund
—‌
1‌
—‌
(298‌)
Origin
Emerging
Markets
Fund
—‌
(8‌)
—‌
(80‌)
Principal
Active
Global
Dividend
Income
ETF
18‌
—‌
—‌
(502‌)
Principal
Active
Income
ETF
102‌
—‌
—‌
(643‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
3‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
26‌
15‌
—‌
42‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
58‌
—‌
—‌
(496‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
7‌
—‌
—‌
(476‌)
Short-Term
Income
Fund
211‌
—‌
—‌
364‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
179‌
(53‌)
—‌
(431‌)
$
1,288‌
$
(83‌)
$
—‌
$
(6,068‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
171
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.68%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
5,521,039‌
$
5,521‌
Principal
Exchange-Traded
Funds
-
21.37%
Principal
Active
Global
Dividend
Income
ETF
(
a)
401,000‌
10,536‌
Principal
Active
Income
ETF
(
a)
122,900‌
4,440‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
50,000‌
1,339‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
1,451,300‌
43,613‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
375,400‌
10,262‌
$
70,190‌
Principal
Funds,
Inc.
Class
R-6
-
52.70%
Blue
Chip
Fund
(
a)
1,527,766‌
45,298‌
Core
Fixed
Income
Fund
(
a)
1,466,457‌
14,914‌
Diversified
International
Fund
(
a)
4,698,221‌
55,439‌
Diversified
Real
Asset
Fund
(
a)
1,051,538‌
10,957‌
Edge
MidCap
Fund
(
a)
1,413,996‌
19,471‌
Global
Real
Estate
Securities
Fund
(
a)
1,160,983‌
9,961‌
International
Small
Company
Fund
(
a)
624,732‌
6,029‌
Origin
Emerging
Markets
Fund
(
a)
570,139‌
6,306‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
481,018‌
4,723‌
$
173,098‌
Principal
Funds,
Inc.
Institutional
Class
-
4.66%
Short-Term
Income
Fund
(
a)
1,222,609‌
15,307‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
19.62%
Equity
Income
Account
(
a)
2,219,900‌
53,388‌
Government
&
High
Quality
Bond
Account
(
a)
1,099,771‌
11,053‌
$
64,441‌
TOTAL
INVESTMENT
COMPANIES
$
328,557‌
Total
Investments
$
328,557‌
Other
Assets
and
Liabilities
-  (
0.03)%
(100‌)
TOTAL
NET
ASSETS
-
100.00%
$
328,457‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
52.37‌%
Fixed
Income
Funds
32.65‌%
International
Equity
Funds
9.99‌%
Specialty
Funds
3.34‌%
Money
Market
Funds
1.68‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
172
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
44,819‌
$
171‌
$
3,975‌
$
45,298‌
Core
Fixed
Income
Fund
17,340‌
633‌
3,521‌
14,914‌
Diversified
International
Fund
61,484‌
1,223‌
2,229‌
55,439‌
Diversified
Real
Asset
Fund
12,484‌
234‌
457‌
10,957‌
Edge
MidCap
Fund
21,539‌
770‌
552‌
19,471‌
Equity
Income
Account
62,031‌
1,675‌
1,366‌
53,388‌
Global
Real
Estate
Securities
Fund
11,975‌
448‌
387‌
9,961‌
Government
&
High
Quality
Bond
Account
11,078‌
336‌
628‌
11,053‌
International
Small
Company
Fund
6,926‌
281‌
149‌
6,029‌
Origin
Emerging
Markets
Fund
7,147‌
35‌
555‌
6,306‌
Principal
Active
Global
Dividend
Income
ETF
12,052‌
—‌
—‌
10,536‌
Principal
Active
Income
ETF
4,674‌
363‌
—‌
4,440‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
826‌
5,058‌
363‌
5,521‌
Principal
Investment
Grade
Corporate
Active
ETF
1,685‌
—‌
397‌
1,339‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
46,991‌
—‌
1,139‌
43,613‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
12,223‌
—‌
—‌
10,262‌
Short-Term
Income
Fund
15,935‌
386‌
1,291‌
15,307‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
5,325‌
172‌
464‌
4,723‌
$
356,534‌
$
11,785‌
$
17,473‌
$
328,557‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
206‌
$
—‌
$
4,077‌
Core
Fixed
Income
Fund
210‌
(50‌)
—‌
512‌
Diversified
International
Fund
—‌
(129‌)
—‌
(4,910‌)
Diversified
Real
Asset
Fund
—‌
(43‌)
—‌
(1,261‌)
Edge
MidCap
Fund
—‌
(66‌)
—‌
(2,220‌)
Equity
Income
Account
—‌
(13‌)
—‌
(8,939‌)
Global
Real
Estate
Securities
Fund
17‌
(74‌)
—‌
(2,001‌)
Government
&
High
Quality
Bond
Account
—‌
(2‌)
—‌
269‌
International
Small
Company
Fund
—‌
(5‌)
—‌
(1,024‌)
Origin
Emerging
Markets
Fund
—‌
(3‌)
—‌
(318‌)
Principal
Active
Global
Dividend
Income
ETF
54‌
—‌
—‌
(1,516‌)
Principal
Active
Income
ETF
94‌
—‌
—‌
(597‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
6‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
21‌
30‌
—‌
21‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
213‌
(233‌)
—‌
(2,006‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
29‌
—‌
—‌
(1,961‌)
Short-Term
Income
Fund
158‌
(1‌)
—‌
278‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
113‌
(31‌)
—‌
(279‌)
$
915‌
$
(414‌)
$
—‌
$
(21,875‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
173
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.96%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
3,402,309‌
$
3,402‌
Principal
Exchange-Traded
Funds
-
15.62%
Principal
Active
Global
Dividend
Income
ETF
(
a)
505,300‌
13,276‌
Principal
Active
Income
ETF
(
a)
126,600‌
4,574‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
100,800‌
2,699‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
219,600‌
6,599‌
$
27,148‌
Principal
Funds,
Inc.
Class
R-6
-
44.83%
Blue
Chip
Fund
(
a)
109,123‌
3,236‌
Core
Fixed
Income
Fund
(
a)
4,148,189‌
42,187‌
Edge
MidCap
Fund
(
a)
196,319‌
2,703‌
Global
Diversified
Income
Fund
(
a)
684,662‌
8,195‌
Global
Real
Estate
Securities
Fund
(
a)
559,240‌
4,798‌
High
Yield
Fund
(
a)
1,107,240‌
7,408‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
956,374‌
9,392‌
$
77,919‌
Principal
Funds,
Inc.
Institutional
Class
-
18.24%
Inflation
Protection
Fund
(
a)
1,061,408‌
9,648‌
Short-Term
Income
Fund
(
a)
1,760,951‌
22,047‌
$
31,695‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
19.38%
Equity
Income
Account
(
a)
480,618‌
11,559‌
Government
&
High
Quality
Bond
Account
(
a)
2,201,712‌
22,127‌
$
33,686‌
TOTAL
INVESTMENT
COMPANIES
$
173,850‌
Total
Investments
$
173,850‌
Other
Assets
and
Liabilities
-  (
0.03)%
(48‌)
TOTAL
NET
ASSETS
-
100.00%
$
173,802‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
69.08‌%
Domestic
Equity
Funds
13.87‌%
International
Equity
Funds
10.40‌%
Specialty
Funds
4.72‌%
Money
Market
Funds
1.96‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
174
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
3,401‌
$
122‌
$
640‌
$
3,236‌
Core
Fixed
Income
Fund
45,508‌
1,988‌
6,874‌
42,187‌
Edge
MidCap
Fund
2,998‌
180‌
161‌
2,703‌
Equity
Income
Account
13,572‌
926‌
1,061‌
11,559‌
Global
Diversified
Income
Fund
9,319‌
669‌
578‌
8,195‌
Global
Real
Estate
Securities
Fund
6,690‌
121‌
1,018‌
4,798‌
Government
&
High
Quality
Bond
Account
23,476‌
903‌
2,806‌
22,127‌
High
Yield
Fund
8,171‌
520‌
731‌
7,408‌
Inflation
Protection
Fund
11,203‌
324‌
2,395‌
9,648‌
Principal
Active
Global
Dividend
Income
ETF
15,187‌
—‌
—‌
13,276‌
Principal
Active
Income
ETF
5,100‌
90‌
—‌
4,574‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
511‌
2,981‌
90‌
3,402‌
Principal
Investment
Grade
Corporate
Active
ETF
2,864‌
—‌
253‌
2,699‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
6,874‌
—‌
—‌
6,599‌
Short-Term
Income
Fund
23,652‌
907‌
2,908‌
22,047‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
9,918‌
707‌
667‌
9,392‌
$
188,444‌
$
10,438‌
$
20,182‌
$
173,850‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
46‌
$
—‌
$
307‌
Core
Fixed
Income
Fund
581‌
30‌
—‌
1,535‌
Edge
MidCap
Fund
—‌
(21‌)
—‌
(293‌)
Equity
Income
Account
—‌
(16‌)
—‌
(1,862‌)
Global
Diversified
Income
Fund
213‌
(55‌)
—‌
(1,160‌)
Global
Real
Estate
Securities
Fund
8‌
90‌
—‌
(1,085‌)
Government
&
High
Quality
Bond
Account
—‌
(21‌)
—‌
575‌
High
Yield
Fund
215‌
(40‌)
—‌
(512‌)
Inflation
Protection
Fund
15‌
62‌
—‌
454‌
Principal
Active
Global
Dividend
Income
ETF
68‌
—‌
—‌
(1,911‌)
Principal
Active
Income
ETF
98‌
—‌
—‌
(616‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
4‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
39‌
19‌
—‌
69‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
32‌
—‌
—‌
(275‌)
Short-Term
Income
Fund
231‌
3‌
—‌
393‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
223‌
(44‌)
—‌
(522‌)
$
1,727‌
$
53‌
$
—‌
$
(4,903‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
175
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.56%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
4,510,282‌
$
4,510‌
Principal
Exchange-Traded
Funds
-
16.11%
Principal
Active
Global
Dividend
Income
ETF
(
a)
606,000‌
15,922‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
665,000‌
19,984‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
389,100‌
10,637‌
$
46,543‌
Principal
Funds,
Inc.
Class
R-6
-
62.10%
Blue
Chip
Fund
(
a)
1,588,916‌
47,112‌
Diversified
International
Fund
(
a)
5,192,262‌
61,269‌
Edge
MidCap
Fund
(
a)
1,377,834‌
18,973‌
Global
Real
Estate
Securities
Fund
(
a)
1,602,808‌
13,752‌
International
Small
Company
Fund
(
a)
697,756‌
6,733‌
LargeCap
Growth
Fund
I
(
a)
911,950‌
16,160‌
Origin
Emerging
Markets
Fund
(
a)
1,394,324‌
15,421‌
$
179,420‌
Principal
Funds,
Inc.
Institutional
Class
-
2.30%
LargeCap
Value
Fund
III
(
a)
462,414‌
6,645‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
17.96%
Equity
Income
Account
(
a)
2,158,388‌
51,909‌
TOTAL
INVESTMENT
COMPANIES
$
289,027‌
Total
Investments
$
289,027‌
Other
Assets
and
Liabilities
-  (
0.03)%
(93‌)
TOTAL
NET
ASSETS
-
100.00%
$
288,934‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
59.33‌%
Fixed
Income
Funds
21.20‌%
International
Equity
Funds
17.94‌%
Money
Market
Funds
1.56‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
48,441‌
$
616‌
$
6,095‌
$
47,112‌
Diversified
International
Fund
67,657‌
1,827‌
2,595‌
61,269‌
Edge
MidCap
Fund
21,089‌
761‌
628‌
18,973‌
Equity
Income
Account
59,669‌
2,519‌
1,563‌
51,909‌
Global
Real
Estate
Securities
Fund
16,031‌
1,116‌
576‌
13,752‌
International
Small
Company
Fund
7,873‌
415‌
392‌
6,733‌
LargeCap
Growth
Fund
I
15,867‌
413‌
1,633‌
16,160‌
LargeCap
Value
Fund
III
7,700‌
392‌
254‌
6,645‌
Origin
Emerging
Markets
Fund
16,906‌
329‌
1,108‌
15,421‌
Principal
Active
Global
Dividend
Income
ETF
18,213‌
—‌
—‌
15,922‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
696‌
3,814‌
—‌
4,510‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
22,380‌
—‌
1,140‌
19,984‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
12,669‌
—‌
—‌
10,637‌
$
315,191‌
$
12,202‌
$
15,984‌
$
289,027‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
(94‌)
$
—‌
$
4,244‌
Diversified
International
Fund
—‌
(266‌)
—‌
(5,354‌)
Edge
MidCap
Fund
—‌
(88‌)
—‌
(2,161‌)
Equity
Income
Account
—‌
(165‌)
—‌
(8,551‌)
Global
Real
Estate
Securities
Fund
25‌
(97‌)
—‌
(2,722‌)
International
Small
Company
Fund
—‌
(46‌)
—‌
(1,117‌)
LargeCap
Growth
Fund
I
—‌
(31‌)
—‌
1,544‌
LargeCap
Value
Fund
III
—‌
(47‌)
—‌
(1,146‌)
Origin
Emerging
Markets
Fund
—‌
(39‌)
—‌
(667‌)
Principal
Active
Global
Dividend
Income
ETF
82‌
—‌
—‌
(2,291‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
5‌
—‌
—‌
—‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
97‌
(177‌)
—‌
(1,079‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
30‌
—‌
—‌
(2,032‌)
$
239‌
$
(1,050‌)
$
—‌
$
(21,332‌)
Amounts
in
thousands.
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
176
INVESTMENT
COMPANIES
-
2.70%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.70%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09
%
(a),(b)
1,593,776‌
$
1,594‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(c),(d)
2,164,588‌
2,165‌
$
3,759‌
TOTAL
INVESTMENT
COMPANIES
$
3,759‌
BONDS
-
86.88%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
0.57%
General
Dynamics
Corp
3.00
%,
05
/11/2021
$
250‌
$
256‌
3.25
%,
04
/01/2025
100‌
111‌
Northrop
Grumman
Corp
2.08
%,
10
/15/2020
150‌
151‌
Raytheon
Technologies
Corp
3.20
%,
03
/15/2024
(e)
250‌
269‌
$
787‌
Agriculture
-
0.15%
Cargill
Inc
1.38
%,
07
/23/2023
(e)
200‌
203‌
Airlines
-
0.28%
Alaska
Airlines
2020-1
Class
A
Pass
Through
Trust
4.80
%,
02
/15/2029
(e),(f)
200‌
202‌
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95
%,
07
/15/2024
241‌
195‌
$
397‌
Automobile
Asset
Backed
Securities
-
5.78%
Americredit
Automobile
Receivables
Trust
2018-1
3.07
%,
12
/19/2022
148‌
150‌
Americredit
Automobile
Receivables
Trust
2018-2
3.15
%,
03
/20/2023
175‌
177‌
Americredit
Automobile
Receivables
Trust
2018-3
3.11
%,
01
/18/2022
3‌
3‌
Americredit
Automobile
Receivables
Trust
2019-1
2.93
%,
06
/20/2022
82‌
82‌
2.97
%,
11
/20/2023
200‌
204‌
Americredit
Automobile
Receivables
Trust
2019-2
2.28
%,
01
/18/2024
400‌
408‌
2.43
%,
09
/19/2022
99‌
100‌
AmeriCredit
Automobile
Receivables
Trust
2019-3
2.17
%,
01
/18/2023
189‌
191‌
AmeriCredit
Automobile
Receivables
Trust
2020-1
1.10
%,
03
/20/2023
100‌
100‌
Capital
Auto
Receivables
Asset
Trust
2018-2
3.27
%,
06
/20/2023
(e)
193‌
194‌
CPS
Auto
Receivables
Trust
2019-A
3.18
%,
06
/15/2022
(e)
34‌
34‌
CPS
Auto
Receivables
Trust
2019-B
2.89
%,
05
/16/2022
(e)
50‌
50‌
CPS
Auto
Receivables
Trust
2019-C
2.55
%,
09
/15/2022
(e)
94‌
95‌
CPS
Auto
Receivables
Trust
2020-A
2.09
%,
05
/15/2023
(e)
151‌
152‌
CPS
Auto
Receivables
Trust
2020-B
1.15
%,
07
/17/2023
(e)
193‌
194‌
Ford
Credit
Auto
Owner
Trust
2015-REV2
2.44
%,
01
/15/2027
(e)
173‌
173‌
Ford
Credit
Auto
Owner
Trust
2016-REV2
2.03
%,
12
/15/2027
(e)
750‌
759‌
Ford
Credit
Auto
Owner
Trust
2017-REV1
2.62
%,
08
/15/2028
(e)
500‌
514‌
Ford
Credit
Auto
Owner
Trust
2018-REV2
3.47
%,
01
/15/2030
(e)
400‌
423‌
Ford
Credit
Auto
Owner
Trust
2019-REV1
3.52
%,
07
/15/2030
(e)
300‌
321‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
Ford
Credit
Auto
Owner
Trust
2020-REV1
2.04
%,
08
/15/2031
(e)
$
250‌
$
254‌
OneMain
Direct
Auto
Receivables
Trust
2018-1
3.43
%,
12
/16/2024
(e)
500‌
507‌
OneMain
Direct
Auto
Receivables
Trust
2019-1
3.63
%,
09
/14/2027
(e)
750‌
806‌
Santander
Drive
Auto
Receivables
Trust
2019-3
2.28
%,
02
/15/2022
177‌
177‌
TCF
Auto
Receivables
Owner
Trust
2016-PT1
1.93
%,
06
/15/2022
(e)
60‌
60‌
Toyota
Auto
Loan
Extended
Note
Trust
2019-1
2.56
%,
11
/25/2031
(e)
250‌
266‌
Toyota
Auto
Loan
Extended
Note
Trust
2020-1
1.35
%,
05
/25/2033
(e)
200‌
203‌
Westlake
Automobile
Receivables
Trust
2018-2
3.20
%,
01
/16/2024
(e)
46‌
46‌
Westlake
Automobile
Receivables
Trust
2018-3
2.98
%,
01
/18/2022
(e)
15‌
15‌
3.32
%,
10
/16/2023
(e)
300‌
302‌
Westlake
Automobile
Receivables
Trust
2019-1
3.06
%,
05
/16/2022
(e)
103‌
104‌
3.26
%,
10
/17/2022
(e)
350‌
355‌
Westlake
Automobile
Receivables
Trust
2019-3
2.15
%,
02
/15/2023
(e)
239‌
241‌
World
Omni
Select
Auto
Trust
2019-A
2.06
%,
08
/15/2023
379‌
382‌
$
8,042‌
Automobile
Floor
Plan
Asset
Backed
Securities
-
1.37%
Ally
Master
Owner
Trust
2.70
%,
01
/17/2023
500‌
504‌
3.29
%,
05
/15/2023
500‌
511‌
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II
0.81
%,
09
/25/2023
(e)
250‌
249‌
1.00
x
1
Month
USD
LIBOR
+
0.63%
Volvo
Financial
Equipment
Master
Owner
Trust
0.68
%,
11
/15/2022
(e)
250‌
250‌
1.00
x
1
Month
USD
LIBOR
+
0.50%
0.70
%,
07
/17/2023
(e)
400‌
398‌
1.00
x
1
Month
USD
LIBOR
+
0.52%
$
1,912‌
Automobile
Manufacturers
-
0.69%
General
Motors
Financial
Co
Inc
2.17
%,
04
/09/2021
300‌
298‌
3
Month
USD
LIBOR
+
0.85%
PACCAR
Financial
Corp
3.10
%,
05
/10/2021
250‌
256‌
Toyota
Motor
Credit
Corp
2.60
%,
01
/11/2022
400‌
412‌
$
966‌
Banks
-
20.22%
Bank
of
America
Corp
1.32
%,
06
/19/2026
(g),(h)
600‌
602‌
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.30
%,
01
/20/2023
350‌
353‌
3
Month
USD
LIBOR
+
1.16%
2.50
%,
10
/21/2022
500‌
512‌
2.63
%,
10
/19/2020
250‌
252‌
3.00
%,
12
/20/2023
(g)
430‌
452‌
3
Month
USD
LIBOR
+
0.79%
4.20
%,
08
/26/2024
500‌
555‌
Bank
of
New
York
Mellon
Corp/The
1.81
%,
10
/30/2023
500‌
506‌
3
Month
USD
LIBOR
+
1.05%
2.10
%,
10
/24/2024
250‌
263‌
2.50
%,
04
/15/2021
300‌
305‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
177
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
BNP
Paribas
SA
3.50
%,
03
/01/2023
(e)
$
250‌
$
265‌
Capital
One
NA
1.91
%,
01
/30/2023
600‌
599‌
3
Month
USD
LIBOR
+
1.15%
Citigroup
Inc
1.95
%,
04
/25/2022
200‌
201‌
3
Month
USD
LIBOR
+
0.96%
2.70
%,
03
/30/2021
900‌
915‌
3.50
%,
05
/15/2023
250‌
266‌
4.00
%,
08
/05/2024
274‌
299‌
4.04
%,
06
/01/2024
(g)
250‌
272‌
3
Month
USD
LIBOR
+
1.02%
Credit
Suisse
AG/New
York
NY
2.10
%,
11
/12/2021
250‌
255‌
Credit
Suisse
Group
AG
4.21
%,
06
/12/2024
(e),(g)
500‌
537‌
3
Month
USD
LIBOR
+
1.24%
Fifth
Third
Bancorp
2.60
%,
06
/15/2022
600‌
622‌
3.65
%,
01
/25/2024
200‌
218‌
4.30
%,
01
/16/2024
400‌
441‌
Fifth
Third
Bank
NA
2.25
%,
06
/14/2021
300‌
305‌
First
Republic
Bank/CA
1.91
%,
02
/12/2024
(g)
250‌
256‌
United
States
Secured
Overnight
Financing
Rate
+
0.62%
Goldman
Sachs
Group
Inc/The
3.00
%,
04
/26/2022
950‌
968‌
3.20
%,
02
/23/2023
300‌
318‌
HSBC
Holdings
PLC
2.63
%,
11
/07/2025
(g)
200‌
207‌
3
Month
USD
LIBOR
+
1.14%
3.95
%,
05
/18/2024
(g)
250‌
269‌
3
Month
USD
LIBOR
+
0.99%
Huntington
Bancshares
Inc/OH
2.63
%,
08
/06/2024
200‌
212‌
ING
Groep
NV
3.15
%,
03
/29/2022
450‌
468‌
JPMorgan
Chase
&
Co
1.51
%,
06
/01/2024
(g)
300‌
305‌
United
States
Secured
Overnight
Financing
Rate
+
1.46%
1.89
%,
04
/25/2023
1,000‌
1,003‌
3
Month
USD
LIBOR
+
0.90%
2.25
%,
10
/24/2023
500‌
506‌
3
Month
USD
LIBOR
+
1.23%
2.30
%,
08
/15/2021
250‌
250‌
4.25
%,
10
/15/2020
750‌
758‌
KeyBank
NA/Cleveland
OH
1.25
%,
03
/10/2023
300‌
305‌
2.40
%,
06
/09/2022
400‌
414‌
3.30
%,
02
/01/2022
250‌
260‌
KeyCorp
5.10
%,
03
/24/2021
488‌
504‌
Morgan
Stanley
2.42
%,
10
/24/2023
1,400‌
1,417‌
3
Month
USD
LIBOR
+
1.40%
4.10
%,
05
/22/2023
300‌
324‌
5.50
%,
07
/24/2020
1,118‌
1,121‌
MUFG
Union
Bank
NA
2.10
%,
12
/09/2022
250‌
258‌
PNC
Bank
NA
1.49
%,
07
/27/2022
400‌
402‌
3
Month
USD
LIBOR
+
0.50%
2.70
%,
11
/01/2022
600‌
628‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
PNC
Financial
Services
Group
Inc/The
3.90
%,
04
/29/2024
$
150‌
$
166‌
Royal
Bank
of
Scotland
Group
PLC
4.27
%,
03
/22/2025
(g)
250‌
272‌
3
Month
USD
LIBOR
+
1.76%
Societe
Generale
SA
2.63
%,
01
/22/2025
(e)
300‌
306‌
State
Street
Corp
2.35
%,
11
/01/2025
(g)
200‌
212‌
United
States
Secured
Overnight
Financing
Rate
+
0.94%
3.10
%,
05
/15/2023
688‌
739‌
Truist
Bank
1.15
%,
08
/02/2022
250‌
251‌
3
Month
USD
LIBOR
+
0.59%
2.45
%,
08
/01/2022
700‌
725‌
2.63
%,
01
/15/2022
600‌
619‌
Truist
Financial
Corp
2.05
%,
05
/10/2021
200‌
203‌
2.90
%,
03
/03/2021
500‌
508‌
UBS
AG/London
1.75
%,
04
/21/2022
(e)
250‌
255‌
UBS
Group
AG
3.49
%,
05
/23/2023
(e)
300‌
314‌
US
Bancorp
3.60
%,
09
/11/2024
350‌
390‌
US
Bank
NA/Cincinnati
OH
1.95
%,
01
/09/2023
250‌
259‌
2.05
%,
10
/23/2020
300‌
301‌
2.65
%,
05
/23/2022
300‌
312‌
Wells
Fargo
&
Co
1.65
%,
06
/02/2024
(g)
400‌
406‌
United
States
Secured
Overnight
Financing
Rate
+
1.60%
1.98
%,
07
/22/2020
100‌
100‌
3
Month
USD
LIBOR
+
0.88%
2.16
%,
02
/11/2026
(g)
200‌
206‌
3
Month
USD
LIBOR
+
0.75%
2.19
%,
04
/30/2026
(g)
400‌
414‌
United
States
Secured
Overnight
Financing
Rate
+
2.00%
3.07
%,
01
/24/2023
1,000‌
1,036‌
$
28,142‌
Beverages
-
0.88%
Anheuser-Busch
InBev
Worldwide
Inc
4.15
%,
01
/23/2025
500‌
567‌
Diageo
Capital
PLC
1.38
%,
09
/29/2025
200‌
204‌
Keurig
Dr
Pepper
Inc
3.55
%,
05
/25/2021
250‌
257‌
PepsiCo
Inc
2.15
%,
10
/14/2020
200‌
201‌
$
1,229‌
Biotechnology
-
0.61%
Amgen
Inc
2.20
%,
02
/21/2027
250‌
264‌
2.65
%,
05
/11/2022
400‌
414‌
Biogen
Inc
3.63
%,
09
/15/2022
159‌
169‌
$
847‌
Building
Materials
-
0.27%
Martin
Marietta
Materials
Inc
4.25
%,
07
/02/2024
349‌
380‌
Chemicals
-
0.90%
Air
Liquide
Finance
SA
1.75
%,
09
/27/2021
(e)
250‌
253‌
Celanese
US
Holdings
LLC
3.50
%,
05
/08/2024
200‌
211‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
178
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Chemicals
(continued)
Chevron
Phillips
Chemical
Co
LLC
/
Chevron
Phillips
Chemical
Co
LP
3.30
%,
05
/01/2023
(e)
$
200‌
$
209‌
DuPont
de
Nemours
Inc
4.21
%,
11
/15/2023
250‌
274‌
International
Flavors
&
Fragrances
Inc
3.40
%,
09
/25/2020
100‌
101‌
Westlake
Chemical
Corp
3.60
%,
07
/15/2022
200‌
207‌
$
1,255‌
Commercial
Mortgage
Backed
Securities
-
1.71%
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
1.02
%,
09
/25/2029
1,400‌
1,406‌
Ginnie
Mae
0.42
%,
09
/16/2055
(
i
),(j)
2,319‌
56‌
0.61
%,
01
/16/2054
(
i
),(j)
2,305‌
54‌
0.63
%,
10
/16/2054
(
i
),(j)
2,843‌
67‌
0.77
%,
02
/16/2055
(
i
),(j)
4,747‌
82‌
0.82
%,
01
/16/2055
(
i
),(j)
4,593‌
136‌
0.90
%,
06
/16/2045
(
i
),(j)
716‌
30‌
1.33
%,
12
/16/2036
(
i
),(j)
544‌
15‌
GS
Mortgage
Securities
Trust
2017-GS6
1.95
%,
05
/10/2050
326‌
327‌
JPMDB
Commercial
Mortgage
Securities
Trust
2016-C4
1.54
%,
12
/15/2049
204‌
204‌
$
2,377‌
Commercial
Services
-
0.29%
PayPal
Holdings
Inc
1.35
%,
06
/01/2023
400‌
408‌
Computers
-
0.72%
Apple
Inc
0.75
%,
05
/11/2023
200‌
202‌
1.13
%,
05
/11/2025
250‌
255‌
Dell
International
LLC
/
EMC
Corp
5.45
%,
06
/15/2023
(e)
200‌
219‌
Hewlett
Packard
Enterprise
Co
4.45
%,
10
/02/2023
300‌
327‌
$
1,003‌
Credit
Card
Asset
Backed
Securities
-
0.59%
BA
Credit
Card
Trust
1.74
%,
01
/15/2025
800‌
823‌
Diversified
Financial
Services
-
1.18%
American
Express
Co
2.75
%,
05
/20/2022
200‌
208‌
3.00
%,
02
/22/2021
550‌
558‌
3.70
%,
11
/05/2021
150‌
156‌
Capital
One
Bank
USA
NA
2.01
%,
01
/27/2023
(g)
250‌
253‌
United
States
Secured
Overnight
Financing
Rate
+
0.62%
Capital
One
Financial
Corp
3.90
%,
01
/29/2024
242‌
263‌
USAA
Capital
Corp
2.63
%,
06
/01/2021
(e)
200‌
204‌
$
1,642‌
Electric
-
5.39%
Alabama
Power
Co
2.45
%,
03
/30/2022
250‌
258‌
Alliant
Energy
Finance
LLC
3.75
%,
06
/15/2023
(e)
400‌
429‌
Black
Hills
Corp
4.25
%,
11
/30/2023
750‌
817‌
CenterPoint
Energy
Inc
3.60
%,
11
/01/2021
300‌
312‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
2.58
%,
07
/01/2020
$
200‌
$
200‌
2.72
%,
08
/15/2021
(j)
200‌
204‌
3.07
%,
08
/15/2024
(j)
200‌
215‌
DTE
Energy
Co
2.25
%,
11
/01/2022
250‌
258‌
2.53
%,
10
/01/2024
300‌
314‌
2.60
%,
06
/15/2022
200‌
206‌
Duke
Energy
Florida
LLC
3.10
%,
08
/15/2021
250‌
255‌
Emera
US
Finance
LP
2.70
%,
06
/15/2021
300‌
305‌
Evergy
Inc
2.45
%,
09
/15/2024
200‌
211‌
Exelon
Corp
3.50
%,
06
/01/2022
500‌
523‌
Indiantown
Cogeneration
LP
9.77
%,
12
/15/2020
28‌
29‌
LG&E
and
KU
Energy
LLC
4.38
%,
10
/01/2021
310‌
321‌
NextEra
Energy
Capital
Holdings
Inc
2.40
%,
09
/01/2021
500‌
511‌
2.90
%,
04
/01/2022
150‌
156‌
3.15
%,
04
/01/2024
150‌
163‌
Public
Service
Enterprise
Group
Inc
2.88
%,
06
/15/2024
100‌
107‌
San
Diego
Gas
&
Electric
Co
1.91
%,
02
/01/2022
58‌
58‌
Sempra
Energy
1.72
%,
01
/15/2021
500‌
500‌
3
Month
USD
LIBOR
+
0.50%
Southern
California
Edison
Co
1.85
%,
02
/01/2022
118‌
118‌
Tucson
Electric
Power
Co
3.05
%,
03
/15/2025
100‌
108‌
Vistra
Operations
Co
LLC
3.70
%,
01
/30/2027
(e)
500‌
515‌
WEC
Energy
Group
Inc
3.38
%,
06
/15/2021
400‌
411‌
$
7,504‌
Electronics
-
0.66%
Fortive
Corp
2.35
%,
06
/15/2021
300‌
304‌
Honeywell
International
Inc
1.85
%,
11
/01/2021
400‌
408‌
2.15
%,
08
/08/2022
200‌
207‌
$
919‌
Environmental
Control
-
0.15%
Republic
Services
Inc
2.50
%,
08
/15/2024
100‌
106‌
Waste
Management
Inc
2.95
%,
06
/15/2024
100‌
103‌
$
209‌
Finance
-
Mortgage
Loan/Banker
-
7.87%
Fannie
Mae
0.50
%,
06
/17/2025
1,000‌
1,000‌
1.75
%,
07
/02/2024
(h)
400‌
422‌
1.88
%,
09
/24/2026
3,700‌
3,983‌
2.00
%,
01
/05/2022
1,000‌
1,028‌
2.13
%,
04
/24/2026
1,200‌
1,308‌
2.50
%,
02
/05/2024
(h)
500‌
539‌
Freddie
Mac
0.25
%,
06
/26/2023
400‌
399‌
1.50
%,
02
/12/2025
1,150‌
1,205‌
2.75
%,
06
/19/2023
1,000‌
1,075‌
$
10,959‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
179
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Food
-
0.63%
Conagra
Brands
Inc
3.80
%,
10
/22/2021
$
500‌
$
520‌
Tyson
Foods
Inc
0.82
%,
08
/21/2020
200‌
200‌
3
Month
USD
LIBOR
+
0.45%
2.25
%,
08
/23/2021
150‌
152‌
$
872‌
Forest
Products
&
Paper
-
0.30%
Georgia-Pacific
LLC
1.75
%,
09
/30/2025
(e)
400‌
413‌
Healthcare
-
Services
-
0.25%
Humana
Inc
2.50
%,
12
/15/2020
100‌
101‌
UnitedHealth
Group
Inc
1.95
%,
10
/15/2020
250‌
251‌
$
352‌
Home
Builders
-
0.15%
DR
Horton
Inc
2.50
%,
10
/15/2024
200‌
209‌
Home
Furnishings
-
0.15%
Panasonic
Corp
2.54
%,
07
/19/2022
(e)
200‌
206‌
Insurance
-
4.19%
Allstate
Corp/The
0.94
%,
03
/29/2023
250‌
249‌
3
Month
USD
LIBOR
+
0.63%
Berkshire
Hathaway
Inc
2.75
%,
03
/15/2023
500‌
530‌
Five
Corners
Funding
Trust
4.42
%,
11
/15/2023
(e)
750‌
836‌
Guardian
Life
Global
Funding
1.10
%,
06
/23/2025
(e)
250‌
251‌
MassMutual
Global
Funding
II
0.85
%,
06
/09/2023
(e)
500‌
502‌
2.00
%,
04
/15/2021
(e)
450‌
456‌
Metropolitan
Life
Global
Funding
I
0.65
%,
09
/07/2020
(e)
250‌
250‌
United
States
Secured
Overnight
Financing
Rate
+
0.57%
0.90
%,
06
/08/2023
(e)
350‌
352‌
1.95
%,
09
/15/2021
(e)
470‌
478‌
New
York
Life
Global
Funding
0.83
%,
06
/10/2022
(e)
1,000‌
1,002‌
3
Month
USD
LIBOR
+
0.52%
2.00
%,
04
/13/2021
(e)
400‌
405‌
2.00
%,
01
/22/2025
(e)
200‌
210‌
Prudential
Financial
Inc
1.50
%,
03
/10/2026
300‌
306‌
$
5,827‌
Internet
-
0.36%
Amazon.com
Inc
1.20
%,
06
/03/2027
500‌
507‌
Iron
&
Steel
-
0.37%
Nucor
Corp
2.00
%,
06
/01/2025
500‌
518‌
Machinery
-
Construction
&
Mining
-
0.23%
Caterpillar
Financial
Services
Corp
2.55
%,
11
/29/2022
300‌
315‌
Machinery
-
Diversified
-
0.29%
John
Deere
Capital
Corp
1.20
%,
04
/06/2023
150‌
153‌
Otis
Worldwide
Corp
2.09
%,
04
/05/2023
(e)
250‌
247‌
3
Month
USD
LIBOR
+
0.45%
$
400‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
-
0.52%
Sky
Ltd
3.13
%,
11
/26/2022
(e)
$
130‌
$
138‌
ViacomCBS
Inc
4.75
%,
05
/15/2025
150‌
171‌
Walt
Disney
Co/The
1.75
%,
01
/13/2026
400‌
412‌
$
721‌
Mining
-
0.32%
Anglo
American
Capital
PLC
5.38
%,
04
/01/2025
(e)
400‌
452‌
Miscellaneous
Manufacturers
-
0.36%
Trane
Technologies
Global
Holding
Co
Ltd
2.90
%,
02
/21/2021
500‌
505‌
Mortgage
Backed
Securities
-
5.36%
Chase
Home
Lending
Mortgage
Trust
2019-1
3.50
%,
03
/25/2050
(e),(j)
175‌
179‌
CHL
Mortgage
Pass-Through
Trust
2003-46
4.02
%,
01
/19/2034
(j)
22‌
21‌
Credit
Suisse
First
Boston
Mortgage
Securities
Corp
5.00
%,
09
/25/2019
1‌
1‌
CSMC
2017-HL1
Trust
3.50
%,
06
/25/2047
(e),(j)
275‌
279‌
CSMC
2017-HL2
Trust
3.50
%,
10
/25/2047
(e),(j)
227‌
232‌
GS
Mortage
-Backed
Securities
Trust
2020-PJ1
3.50
%,
05
/25/2050
(e),(j)
82‌
82‌
GS
Mortgage-Backed
Securities
Corp
Trust
2020-PJ3
3.00
%,
10
/25/2050
(e),(j)
100‌
101‌
JP
Morgan
Mortgage
Trust
2004-A3
3.31
%,
07
/25/2034
(j)
13‌
12‌
JP
Morgan
Mortgage
Trust
2004-S1
5.00
%,
09
/25/2034
19‌
19‌
JP
Morgan
Mortgage
Trust
2016-4
3.50
%,
10
/25/2046
(e),(j)
351‌
355‌
JP
Morgan
Mortgage
Trust
2017-2
3.50
%,
05
/25/2047
(e),(j)
225‌
229‌
JP
Morgan
Mortgage
Trust
2017-4
3.50
%,
11
/25/2048
(e),(j)
173‌
176‌
JP
Morgan
Mortgage
Trust
2017-6
3.50
%,
12
/25/2048
(e),(j)
106‌
108‌
JP
Morgan
Mortgage
Trust
2018-3
3.50
%,
09
/25/2048
(e),(j)
271‌
275‌
JP
Morgan
Mortgage
Trust
2018-4
3.50
%,
10
/25/2048
(e),(j)
150‌
153‌
JP
Morgan
Mortgage
Trust
2018-6
3.50
%,
12
/25/2048
(e),(j)
129‌
130‌
JP
Morgan
Mortgage
Trust
2019-2
4.00
%,
08
/25/2049
(e),(j)
48‌
48‌
JP
Morgan
Mortgage
Trust
2019-5
4.00
%,
11
/25/2049
(e),(j)
146‌
147‌
PHH
Mortgage
Trust
Series
2008-CIM1
2.42
%,
06
/25/2038
78‌
74‌
1.00
x
1
Month
USD
LIBOR
+
2.25%
Prime
Mortgage
Trust
2005-2
5.25
%,
07
/25/2020
25‌
25‌
Provident
Funding
Mortgage
Loan
Trust
2005-1
0.75
%,
05
/25/2035
(k)
51‌
50‌
1.00
x
1
Month
USD
LIBOR
+
0.58%
PSMC
2018-1
Trust
3.50
%,
02
/25/2048
(e),(j)
398‌
403‌
PSMC
2018-2
Trust
3.50
%,
06
/25/2048
(e),(j)
220‌
223‌
PSMC
2018-3
Trust
4.00
%,
08
/25/2048
(e),(j)
142‌
143‌
PSMC
2018-4
Trust
4.00
%,
11
/25/2048
(e),(j)
65‌
65‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
180
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
PSMC
2020-1
Trust
3.50
%,
01
/25/2050
(e),(j)
$
343‌
$
350‌
PSMC
2020-2
Trust
3.00
%,
05
/25/2050
(e),(j),(k)
250‌
255‌
RBSSP
Resecuritization
Trust
2009-7
0.57
%,
06
/26/2037
(e)
5‌
5‌
1.00
x
1
Month
USD
LIBOR
+
0.40%
Sequoia
Mortgage
Trust
2013-4
1.55
%,
04
/25/2043
(j)
28‌
28‌
Sequoia
Mortgage
Trust
2013-8
2.25
%,
06
/25/2043
(j)
115‌
115‌
Sequoia
Mortgage
Trust
2017-1
3.50
%,
02
/25/2047
(e),(j)
273‌
280‌
Sequoia
Mortgage
Trust
2017-2
3.50
%,
02
/25/2047
(e),(j)
140‌
143‌
Sequoia
Mortgage
Trust
2017-3
3.50
%,
04
/25/2047
(e),(j)
205‌
209‌
Sequoia
Mortgage
Trust
2018-3
3.50
%,
03
/25/2048
(e),(j)
151‌
153‌
Sequoia
Mortgage
Trust
2018-5
3.50
%,
05
/25/2048
(e),(j)
197‌
200‌
Sequoia
Mortgage
Trust
2018-6
4.00
%,
07
/25/2048
(e),(j)
51‌
51‌
Sequoia
Mortgage
Trust
2018-7
4.00
%,
09
/25/2048
(e),(j)
44‌
44‌
Sequoia
Mortgage
Trust
2018-8
4.00
%,
11
/25/2048
(e),(j)
160‌
162‌
Sequoia
Mortgage
Trust
2018-CH3
4.00
%,
08
/25/2048
(e),(j)
59‌
60‌
Sequoia
Mortgage
Trust
2019-1
4.00
%,
02
/25/2049
(e),(j)
35‌
35‌
Sequoia
Mortgage
Trust
2020-1
3.50
%,
02
/25/2050
(e),(j)
79‌
81‌
Wells
Fargo
Mortgage
Backed
Securities
2018-1
3.50
%,
07
/25/2047
(e),(j)
232‌
238‌
Wells
Fargo
Mortgage
Backed
Securities
2019-1
Trust
4.00
%,
11
/25/2048
(e),(j)
149‌
150‌
4.00
%,
11
/25/2048
(e),(j)
61‌
61‌
Wells
Fargo
Mortgage
Backed
Securities
2019-3
Trust
3.00
%,
07
/25/2049
(e),(j)
258‌
261‌
Wells
Fargo
Mortgage
Backed
Securities
2019-4
Trust
3.50
%,
09
/25/2049
(e),(j)
190‌
194‌
Wells
Fargo
Mortgage
Backed
Securities
2020-1
Trust
3.00
%,
12
/25/2049
(e),(j)
437‌
445‌
Wells
Fargo
Mortgage
Backed
Securities
2020-2
Trust
3.00
%,
12
/25/2049
(e),(j)
400‌
409‌
$
7,459‌
Oil
&
Gas
-
1.48%
BP
Capital
Markets
America
Inc
2.94
%,
04
/06/2023
250‌
264‌
Cimarex
Energy
Co
4.38
%,
06
/01/2024
250‌
264‌
Exxon
Mobil
Corp
1.57
%,
04
/15/2023
150‌
154‌
2.99
%,
03
/19/2025
200‌
217‌
Marathon
Petroleum
Corp
4.50
%,
05
/01/2023
200‌
216‌
Phillips
66
0.96
%,
02
/26/2021
50‌
50‌
3
Month
USD
LIBOR
+
0.60%
3.70
%,
04
/06/2023
150‌
160‌
Shell
International
Finance
BV
2.38
%,
08
/21/2022
300‌
313‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Suncor
Energy
Inc
2.80
%,
05
/15/2023
$
300‌
$
313‌
3.10
%,
05
/15/2025
100‌
107‌
$
2,058‌
Oil
&
Gas
Services
-
0.19%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77
%,
12
/15/2022
250‌
260‌
Other
Asset
Backed
Securities
-
5.79%
CCG
Receivables
Trust
2.80
%,
09
/14/2026
(e)
394‌
401‌
CCG
Receivables
Trust
2018-1
2.50
%,
06
/16/2025
(e)
21‌
21‌
CCG
Receivables
Trust
2018-2
3.09
%,
12
/15/2025
(e)
219‌
222‌
CCG
Receivables
Trust
2019-2
2.11
%,
03
/15/2027
(e)
400‌
404‌
Daimler
Trucks
Retail
Trust
2019-1
2.77
%,
04
/15/2021
(e)
113‌
113‌
Drug
Royalty
III
LP
1
3.72
%,
04
/15/2027
(e)
85‌
85‌
1.00
x
3
Month
USD
LIBOR
+
2.50%
3.98
%,
04
/15/2027
(e)
8‌
8‌
4.27
%,
10
/15/2031
(e)
175‌
180‌
MMAF
Equipment
Finance
LLC
2018-A
2.92
%,
07
/12/2021
(e)
28‌
28‌
MMAF
Equipment
Finance
LLC
2019-A
2.84
%,
01
/10/2022
(e)
239‌
240‌
MMAF
Equipment
Finance
LLC
2020-A
0.74
%,
04
/09/2024
(e)
500‌
501‌
MVW
Owner
Trust
2015-1
2.52
%,
12
/20/2032
(e)
142‌
141‌
MVW
Owner
Trust
2016-1
2.25
%,
12
/20/2033
(e)
122‌
120‌
MVW
Owner
Trust
2018-1
3.45
%,
01
/21/2036
(e)
269‌
275‌
PFS
Financing
Corp
2.23
%,
10
/15/2024
(e)
750‌
740‌
2.40
%,
10
/17/2022
(e)
300‌
301‌
2.86
%,
04
/15/2024
(e)
250‌
257‌
3.19
%,
04
/17/2023
(e)
250‌
254‌
Verizon
Owner
Trust
2017-2
1.92
%,
12
/20/2021
(e)
40‌
40‌
Verizon
Owner
Trust
2017-3
2.06
%,
04
/20/2022
(e)
84‌
84‌
Verizon
Owner
Trust
2018-1
2.82
%,
09
/20/2022
(e)
351‌
354‌
Verizon
Owner
Trust
2018-A
3.23
%,
04
/20/2023
600‌
613‌
Verizon
Owner
Trust
2019-A
2.93
%,
09
/20/2023
500‌
515‌
Verizon
Owner
Trust
2019-B
2.33
%,
12
/20/2023
500‌
513‌
Verizon
Owner
Trust
2019-C
1.94
%,
04
/22/2024
500‌
513‌
Verizon
Owner
Trust
2020-A
1.85
%,
07
/22/2024
300‌
308‌
Volvo
Financial
Equipment
LLC
Series
2018-1
2.76
%,
10
/17/2022
(e)
100‌
101‌
Volvo
Financial
Equipment
LLC
Series
2019-1
3.00
%,
03
/15/2023
(e)
300‌
306‌
Volvo
Financial
Equipment
LLC
Series
2019-2
2.02
%,
08
/15/2022
(e)
250‌
252‌
VSE
2018-A
VOI
Mortgage
LLC
3.56
%,
02
/20/2036
(e)
160‌
164‌
$
8,054‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
181
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
-
2.69%
AbbVie
Inc
2.15
%,
11
/19/2021
(e)
$
500‌
$
510‌
2.30
%,
05
/14/2021
200‌
204‌
Bayer
US
Finance
II
LLC
3.88
%,
12
/15/2023
(e)
200‌
219‌
Bristol-Myers
Squibb
Co
2.90
%,
07
/26/2024
(e)
150‌
162‌
3.25
%,
08
/15/2022
(e)
250‌
264‌
3.63
%,
05
/15/2024
(e)
350‌
385‌
Cigna
Corp
3.40
%,
09
/17/2021
389‌
402‌
CVS
Health
Corp
2.63
%,
08
/15/2024
250‌
267‌
3.35
%,
03
/09/2021
300‌
306‌
Mead
Johnson
Nutrition
Co
3.00
%,
11
/15/2020
250‌
252‌
Merck
&
Co
Inc
0.75
%,
02
/24/2026
200‌
200‌
Novartis
Capital
Corp
1.75
%,
02
/14/2025
300‌
314‌
Pfizer
Inc
2.80
%,
03
/11/2022
250‌
260‌
$
3,745‌
Pipelines
-
2.03%
Buckeye
Partners
LP
4.15
%,
07
/01/2023
400‌
389‌
Enterprise
Products
Operating
LLC
3.50
%,
02
/01/2022
500‌
521‌
Florida
Gas
Transmission
Co
LLC
3.88
%,
07
/15/2022
(e)
250‌
261‌
Kinder
Morgan
Inc
2.50
%,
01
/15/2023
500‌
500‌
3
Month
USD
LIBOR
+
1.28%
ONEOK
Partners
LP
5.00
%,
09
/15/2023
325‌
351‌
Southeast
Supply
Header
LLC
4.25
%,
06
/15/2024
(e)
200‌
199‌
TransCanada
PipeLines
Ltd
2.60
%,
05
/15/2067
900‌
609‌
3
Month
USD
LIBOR
+
2.21%
$
2,830‌
REITs
-
1.87%
Alexandria
Real
Estate
Equities
Inc
3.90
%,
06
/15/2023
250‌
271‌
American
Tower
Corp
2.40
%,
03
/15/2025
200‌
211‌
American
Tower
Trust
#1
3.07
%,
03
/15/2048
(e)
225‌
230‌
Crown
Castle
International
Corp
1.35
%,
07
/15/2025
250‌
252‌
CubeSmart
LP
4.38
%,
12
/15/2023
92‌
100‌
Healthcare
Realty
Trust
Inc
3.75
%,
04
/15/2023
365‌
380‌
Omega
Healthcare
Investors
Inc
4.95
%,
04
/01/2024
250‌
263‌
SBA
Tower
Trust
2.88
%,
07
/15/2046
(e)
150‌
150‌
3.17
%,
04
/09/2047
(e)
400‌
404‌
Ventas
Realty
LP
3.50
%,
04
/15/2024
198‌
206‌
Welltower
Inc
3.75
%,
03
/15/2023
134‌
142‌
$
2,609‌
Retail
-
0.47%
McDonald's
Corp
2.75
%,
12
/09/2020
500‌
504‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Walmart
Inc
1.90
%,
12
/15/2020
$
150‌
$
151‌
$
655‌
Savings
&
Loans
-
0.00%
Washington
Mutual
Bank
/
Henderson
NV
0.00
%,
01
/15/2013
(d)
200‌
—‌
Semiconductors
-
1.14%
Broadcom
Inc
2.25
%,
11
/15/2023
(e)
150‌
155‌
4.70
%,
04
/15/2025
(e)
200‌
225‌
Microchip
Technology
Inc
4.33
%,
06
/01/2023
200‌
216‌
Micron
Technology
Inc
2.50
%,
04
/24/2023
300‌
312‌
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70
%,
05
/01/2025
(e)
200‌
210‌
3.15
%,
05
/01/2027
(e)
200‌
212‌
QUALCOMM
Inc
2.60
%,
01
/30/2023
250‌
262‌
$
1,592‌
Software
-
0.51%
Intuit
Inc
0.65
%,
07
/15/2023
200‌
200‌
Oracle
Corp
1.90
%,
09
/15/2021
200‌
204‌
VMware
Inc
2.95
%,
08
/21/2022
300‌
310‌
$
714‌
Student
Loan
Asset
Backed
Securities
-
4.20%
Commonbond
Student
Loan
Trust
2018-BGS
3.56
%,
09
/25/2045
(e)
215‌
223‌
Commonbond
Student
Loan
Trust
2018-C-GS
3.87
%,
02
/25/2046
(e)
284‌
295‌
Commonbond
Student
Loan
Trust
2019-A-GS
2.54
%,
01
/25/2047
(e)
420‌
436‌
Commonbond
Student
Loan
Trust
2020-A-GS
1.98
%,
08
/25/2050
(e)
200‌
202‌
Keycorp
Student
Loan
Trust
2000-b
1.30
%,
07
/25/2029
260‌
257‌
1.00
x
3
Month
USD
LIBOR
+
0.31%
KeyCorp
Student
Loan
Trust
2003-A
1.52
%,
01
/25/2037
649‌
643‌
1.00
x
3
Month
USD
LIBOR
+
0.53%
Laurel
Road
Prime
Student
Loan
Trust
2019-A
2.34
%,
10
/25/2048
(e)
52‌
52‌
Navient
Private
Education
Refi
Loan
Trust
2018-C
3.01
%,
06
/16/2042
(e)
18‌
18‌
Navient
Private
Education
Refi
Loan
Trust
2018-D
0.48
%,
12
/15/2059
(e)
36‌
36‌
1.00
x
1
Month
USD
LIBOR
+
0.30%
Navient
Private
Education
Refi
Loan
Trust
2019-A
3.03
%,
01
/15/2043
(e)
9‌
9‌
3.42
%,
01
/15/2043
(e)
100‌
102‌
Navient
Private
Education
Refi
Loan
Trust
2019-C
2.82
%,
02
/15/2068
(e)
174‌
175‌
Navient
Private
Education
Refi
Loan
Trust
2019-D
0.58
%,
12
/15/2059
(e)
71‌
71‌
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Refi
Loan
Trust
2019-E
2.39
%,
05
/15/2068
(e)
120‌
121‌
Navient
Private
Education
Refi
Loan
Trust
2019-F
2.18
%,
08
/15/2068
(e)
137‌
138‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
182
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
(continued)
Navient
Private
Education
Refi
Loan
Trust
2019-G
2.40
%,
10
/15/2068
(e)
$
352‌
$
359‌
Navient
Private
Education
Refi
Loan
Trust
2020-A
0.53
%,
11
/15/2068
(e)
142‌
142‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Private
Education
Refi
Loan
Trust
2020-B
1.80
%,
01
/15/2069
(e)
258‌
258‌
Navient
Private
Education
Refi
Loan
Trust
2020-D
1.69
%,
05
/15/2069
(e)
450‌
452‌
Navient
Student
Loan
Trust
2018-EA
3.43
%,
12
/15/2059
(e)
155‌
156‌
Navient
Student
Loan
Trust
2019-B
0.58
%,
12
/15/2059
(e)
78‌
78‌
1.00
x
1
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-A
0.71
%,
06
/15/2033
98‌
95‌
1.00
x
3
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-B
0.64
%,
03
/15/2024
260‌
256‌
1.00
x
3
Month
USD
LIBOR
+
0.33%
SLM
Private
Credit
Student
Loan
Trust
2006-A
0.60
%,
06
/15/2039
636‌
590‌
1.00
x
3
Month
USD
LIBOR
+
0.29%
SLM
Private
Credit
Student
Loan
Trust
2006-B
0.51
%,
12
/15/2039
252‌
240‌
1.00
x
3
Month
USD
LIBOR
+
0.20%
SMB
Private
Education
Loan
Trust
2019-A
0.53
%,
02
/16/2026
(e)
49‌
49‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2019-B
0.53
%,
07
/15/2026
(e)
95‌
95‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2020-A
0.48
%,
03
/15/2027
(e)
300‌
298‌
1.00
x
1
Month
USD
LIBOR
+
0.30%
$
5,846‌
Telecommunications
-
2.30%
AT&T
Inc
1.10
%,
06
/01/2021
300‌
301‌
3
Month
USD
LIBOR
+
0.75%
1.31
%,
02
/15/2023
250‌
249‌
3
Month
USD
LIBOR
+
0.89%
2.30
%,
06
/01/2027
300‌
311‌
3.60
%,
02
/17/2023
200‌
215‌
Cisco
Systems
Inc
2.20
%,
02
/28/2021
250‌
253‌
Crown
Castle
Towers
LLC
3.22
%,
05
/15/2022
(e)
322‌
327‌
Sprint
Spectrum
Co
LLC
/
Sprint
Spectrum
Co
II
LLC
/
Sprint
Spectrum
Co
III
LLC
3.36
%,
03
/20/2023
(e)
234‌
237‌
4.74
%,
03
/20/2025
(e)
950‌
1,031‌
Vodafone
Group
PLC
3.75
%,
01
/16/2024
250‌
273‌
$
3,197‌
Transportation
-
0.30%
Ryder
System
Inc
2.25
%,
09
/01/2021
200‌
203‌
3.75
%,
06
/09/2023
200‌
213‌
$
416‌
Trucking
&
Leasing
-
0.15%
Penske
Truck
Leasing
Co
Lp
/
PTL
Finance
Corp
3.45
%,
07
/01/2024
(e)
200‌
212‌
TOTAL
BONDS
$
120,948‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
9.68%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
0.01%
3.84
%,
09
/01/2035
$
10‌
$
10‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.25%
Federal
National
Mortgage
Association
(FNMA)
-
0.06%
2.97
%,
04
/01/2033
19‌
19‌
1.00
x
6
Month
USD
LIBOR
+
1.51%
3.61
%,
08
/01/2034
6‌
6‌
1.00
x
12
Month
USD
LIBOR
+
1.63%
3.64
%,
12
/01/2032
4‌
4‌
1.00
x
12
Month
USD
LIBOR
+
1.64%
3.75
%,
01
/01/2035
6‌
6‌
1.00
x
12
Month
USD
LIBOR
+
1.75%
3.79
%,
02
/01/2037
16‌
17‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.13%
3.95
%,
02
/01/2035
3‌
3‌
1.00
x
6
Month
USD
LIBOR
+
2.07%
4.04
%,
11
/01/2032
2‌
2‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.29%
4.12
%,
12
/01/2033
11‌
11‌
1.00
x
6
Month
USD
LIBOR
+
2.25%
4.28
%,
07
/01/2034
9‌
9‌
1.00
x
12
Month
USD
LIBOR
+
1.64%
8.00
%,
05
/01/2027
4‌
4‌
$
81‌
U.S.
Treasury
-
6.67%
1.50
%,
11
/30/2021
1,900‌
1,936‌
1.50
%,
10
/31/2024
250‌
264‌
1.63
%,
06
/30/2021
2,000‌
2,029‌
1.63
%,
08
/31/2022
1,700‌
1,753‌
1.75
%,
07
/31/2021
3,250‌
3,305‌
$
9,287‌
U.S.
Treasury
Bill
-
2.94%
0.13
%,
09
/10/2020
(l)
1,000‌
1,000‌
0.13
%,
10
/15/2020
(l)
500‌
500‌
0.13
%,
11
/05/2020
(l)
600‌
599‌
0.14
%,
08
/27/2020
(l)
500‌
500‌
0.14
%,
11
/19/2020
(l)
500‌
500‌
0.15
%,
01
/28/2021
(l)
500‌
499‌
0.16
%,
10
/01/2020
(l)
500‌
500‌
$
4,098‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
13,476‌
Total
Investments
$
138,183‌
Other
Assets
and
Liabilities
-  0.74
%
1,025‌
TOTAL
NET
ASSETS
-
100.00%
$
139,208‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,594
or
1.15%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$39,207
or
28.16%
of
net
assets.
(f)
Security
purchased
on
a
when-issued
basis.
(g)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(h)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(
i
)
Security
is
an
Interest
Only
Strip.
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
183
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$305
or
0.22%
of
net
assets.
(l)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary  (
unaudited)
Sector
Percent
Financial
27.46‌%
Asset
Backed
Securities
17.73‌%
Government
17.48‌%
Mortgage
Securities
7.14‌%
Consumer,
Non-cyclical
5.50‌%
Utilities
5.39‌%
Energy
3.70‌%
Communications
3.18‌%
Industrial
2.98‌%
Money
Market
Funds
2.70‌%
Technology
2.37‌%
Basic
Materials
1.89‌%
Consumer,
Cyclical
1.74‌%
Other
Assets
and
Liabilities
0.74‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
4,444‌
$
44,323‌
$
46,602‌
$
2,165‌
$
4,444‌
$
44,323‌
$
46,602‌
$
2,165‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
12‌
$
—‌
$
—‌
$
—‌
$
12‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
SmallCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
184
INVESTMENT
COMPANIES
-
4.47%
Shares
Held
Value
(000's)
Money
Market
Funds
-
4.47%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
2,274,513‌
$
2,274‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c),(d)
5,059,021‌
5,059‌
$
7,333‌
TOTAL
INVESTMENT
COMPANIES
$
7,333‌
COMMON
STOCKS
-
100.05%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0.92%
Aerojet
Rocketdyne
Holdings
Inc
(d)
38,000‌
$
1,506‌
Agriculture
-
1.53%
Darling
Ingredients
Inc
(d)
102,000‌
2,511‌
Automobile
Parts
&
Equipment
-
0.76%
Modine
Manufacturing
Co
(d)
54,300‌
300‌
Visteon
Corp
(d)
13,900‌
952‌
$
1,252‌
Banks
-
6.25%
BancFirst
Corp
10,300‌
418‌
Cathay
General
Bancorp
47,000‌
1,236‌
First
Foundation
Inc
30,100‌
492‌
First
Interstate
BancSystem
Inc
38,900‌
1,204‌
First
Merchants
Corp
33,500‌
924‌
First
Midwest
Bancorp
Inc
/IL
70,700‌
944‌
Flagstar
Bancorp
Inc
35,000‌
1,030‌
IBERIABANK
Corp
21,500‌
979‌
Independent
Bank
Corp/MI
23,500‌
349‌
Lakeland
Bancorp
Inc
24,800‌
283‌
United
Community
Banks
Inc
/GA
79,120‌
1,592‌
WesBanco
Inc
39,200‌
796‌
$
10,247‌
Biotechnology
-
6.40%
Acceleron
Pharma
Inc
(d)
14,500‌
1,382‌
ADC
Therapeutics
SA
(d),(e)
9,600‌
449‌
Allogene
Therapeutics
Inc
(d),(e)
15,700‌
672‌
Bellicum
Pharmaceuticals
Inc
(d),(e)
10,400‌
77‌
Bluebird
Bio
Inc
(d)
8,400‌
513‌
Denali
Therapeutics
Inc
(d)
36,400‌
880‌
FibroGen
Inc
(d)
24,200‌
981‌
Immunomedics
Inc
(d)
19,100‌
677‌
Insmed
Inc
(d)
53,400‌
1,471‌
Iovance
Biotherapeutics
Inc
(d)
31,800‌
873‌
MacroGenics
Inc
(d)
32,500‌
907‌
Magenta
Therapeutics
Inc
(d)
47,400‌
356‌
Seattle
Genetics
Inc
(d)
7,400‌
1,257‌
$
10,495‌
Building
Materials
-
1.28%
Builders
FirstSource
Inc
(d)
71,300‌
1,476‌
JELD-WEN
Holding
Inc
(d)
38,300‌
617‌
$
2,093‌
Chemicals
-
1.09%
Cabot
Corp
36,260‌
1,344‌
Koppers
Holdings
Inc
(d)
15,400‌
290‌
Kraton
Corp
(d)
9,215‌
159‌
$
1,793‌
Commercial
Services
-
6.38%
AMN
Healthcare
Services
Inc
(d)
35,500‌
1,606‌
BrightView
Holdings
Inc
(d)
69,900‌
783‌
Brink's
Co/The
25,000‌
1,138‌
FTI
Consulting
Inc
(d)
6,800‌
779‌
HMS
Holdings
Corp
(d)
72,400‌
2,345‌
ICF
International
Inc
16,900‌
1,095‌
K12
Inc
(d)
51,100‌
1,392‌
Medifast
Inc
(e)
7,400‌
1,027‌
Nesco
Holdings
Inc
(d),(e)
75,600‌
304‌
$
10,469‌
Computers
-
5.20%
CACI
International
Inc
(d)
7,500‌
1,626‌
ExlService
Holdings
Inc
(d)
21,100‌
1,338‌
Parsons
Corp
(d)
54,200‌
1,964‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
(continued)
Perspecta
Inc
91,300‌
$
2,121‌
Ping
Identity
Holding
Corp
(d)
45,900‌
1,473‌
$
8,522‌
Consumer
Products
-
0.90%
Central
Garden
&
Pet
Co
-
A
Shares
(d)
43,720‌
1,477‌
Diversified
Financial
Services
-
4.14%
Federated
Hermes
Inc
29,700‌
704‌
Hamilton
Lane
Inc
21,946‌
1,479‌
LPL
Financial
Holdings
Inc
11,900‌
933‌
Piper
Sandler
Cos
20,150‌
1,192‌
PJT
Partners
Inc
7,859‌
403‌
Stifel
Financial
Corp
43,995‌
2,087‌
$
6,798‌
Electric
-
2.24%
PNM
Resources
Inc
47,580‌
1,829‌
Portland
General
Electric
Co
44,200‌
1,848‌
$
3,677‌
Electrical
Components
&
Equipment
-
1.54%
EnerSys
32,600‌
2,099‌
nLight
Inc
(d)
19,190‌
427‌
$
2,526‌
Electronics
-
4.10%
Advanced
Energy
Industries
Inc
(d)
29,600‌
2,006‌
Atkore
International
Group
Inc
(d)
48,000‌
1,313‌
SYNNEX
Corp
17,300‌
2,072‌
Vishay
Intertechnology
Inc
87,600‌
1,338‌
$
6,729‌
Engineering
&
Construction
-
2.23%
Great
Lakes
Dredge
&
Dock
Corp
(d)
108,000‌
1,000‌
MasTec
Inc
(d)
52,500‌
2,356‌
Tutor
Perini
Corp
(d)
24,798‌
302‌
$
3,658‌
Entertainment
-
2.43%
Eldorado
Resorts
Inc
(d),(e)
56,600‌
2,267‌
Golden
Entertainment
Inc
(d)
50,400‌
450‌
Vail
Resorts
Inc
7,000‌
1,275‌
$
3,992‌
Environmental
Control
-
0.96%
Tetra
Tech
Inc
19,900‌
1,574‌
Food
-
0.79%
Performance
Food
Group
Co
(d)
44,618‌
1,300‌
Forest
Products
&
Paper
-
0.26%
P
H
Glatfelter
Co
26,200‌
420‌
Gas
-
1.14%
Southwest
Gas
Holdings
Inc
27,150‌
1,875‌
Healthcare
-
Products
-
4.02%
Adaptive
Biotechnologies
Corp
(d)
13,600‌
658‌
Castle
Biosciences
Inc
(d)
3,127‌
118‌
Natera
Inc
(d)
47,277‌
2,357‌
Nevro
Corp
(d)
12,600‌
1,505‌
Precision
BioSciences
Inc
(d)
69,000‌
575‌
RA
Medical
Systems
Inc
(d)
62,600‌
31‌
STAAR
Surgical
Co
(d)
21,800‌
1,342‌
$
6,586‌
Healthcare
-
Services
-
4.58%
Addus
HomeCare
Corp
(d)
22,900‌
2,120‌
Encompass
Health
Corp
27,100‌
1,678‌
Syneos
Health
Inc
(d)
36,100‌
2,103‌
Teladoc
Health
Inc
(d)
8,400‌
1,603‌
$
7,504‌
Holding
Companies
-
Diversified
-
1.17%
GS
Acquisition
Holdings
Corp
II
(d)
182,300‌
1,916‌
Home
Builders
-
1.26%
Taylor
Morrison
Home
Corp
(d)
107,000‌
2,064‌
Home
Furnishings
-
0.61%
Purple
Innovation
Inc
(d)
55,334‌
996‌
Schedule
of
Investments
SmallCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
185
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
3.69%
Essent
Group
Ltd
35,600‌
$
1,291‌
First
American
Financial
Corp
18,100‌
869‌
Hanover
Insurance
Group
Inc
/The
18,300‌
1,854‌
Kemper
Corp
21,980‌
1,594‌
NMI
Holdings
Inc
(d)
27,600‌
444‌
$
6,052‌
Internet
-
0.61%
Eventbrite
Inc
(d)
77,300‌
663‌
Revolve
Group
Inc
(d),(e)
23,098‌
343‌
$
1,006‌
Iron
&
Steel
-
0.71%
Cleveland-Cliffs
Inc
(e)
212,000‌
1,170‌
Leisure
Products
&
Services
-
1.10%
Lindblad
Expeditions
Holdings
Inc
(d)
36,800‌
284‌
Planet
Fitness
Inc
(d)
25,200‌
1,526‌
$
1,810‌
Lodging
-
0.93%
Extended
Stay
America
Inc
136,700‌
1,530‌
Machinery
-
Diversified
-
0.58%
Columbus
McKinnon
Corp/NY
28,300‌
947‌
Media
-
0.63%
World
Wrestling
Entertainment
Inc
23,700‌
1,030‌
Metal
Fabrication
&
Hardware
-
1.85%
Advanced
Drainage
Systems
Inc
22,858‌
1,129‌
Rexnord
Corp
65,400‌
1,907‌
$
3,036‌
Mining
-
0.25%
Alcoa
Corp
(d)
36,420‌
409‌
Miscellaneous
Manufacturers
-
1.40%
Hillenbrand
Inc
75,600‌
2,046‌
Trinseo
SA
11,100‌
246‌
$
2,292‌
Oil
&
Gas
-
1.06%
Delek
US
Holdings
Inc
24,300‌
423‌
Parsley
Energy
Inc
42,000‌
449‌
PDC
Energy
Inc
(d)
16,400‌
204‌
Talos
Energy
Inc
(d)
24,500‌
225‌
WPX
Energy
Inc
(d)
69,800‌
445‌
$
1,746‌
Oil
&
Gas
Services
-
0.69%
ChampionX
Corp
(d)
39,100‌
382‌
Matrix
Service
Co
(d)
23,200‌
225‌
Select
Energy
Services
Inc
(d)
106,700‌
523‌
$
1,130‌
Packaging
&
Containers
-
0.86%
Graphic
Packaging
Holding
Co
100,400‌
1,405‌
Pharmaceuticals
-
2.91%
DexCom
Inc
(d)
2,700‌
1,095‌
Horizon
Therapeutics
Plc
(d)
35,500‌
1,973‌
Revance
Therapeutics
Inc
(d)
69,700‌
1,702‌
$
4,770‌
REITs
-
7.48%
Agree
Realty
Corp
32,400‌
2,129‌
Brandywine
Realty
Trust
152,700‌
1,663‌
Cousins
Properties
Inc
61,901‌
1,847‌
First
Industrial
Realty
Trust
Inc
53,900‌
2,072‌
Ladder
Capital
Corp
107,100‌
868‌
Pebblebrook
Hotel
Trust
110,420‌
1,508‌
Rexford
Industrial
Realty
Inc
42,900‌
1,777‌
Two
Harbors
Investment
Corp
78,640‌
396‌
$
12,260‌
Retail
-
4.39%
BJ's
Wholesale
Club
Holdings
Inc
(d)
67,600‌
2,520‌
Bloomin
'
Brands
Inc
29,400‌
313‌
Brinker
International
Inc
19,100‌
458‌
Caleres
Inc
120,000‌
1,001‌
Carvana
Co
(d)
14,100‌
1,695‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Children's
Place
Inc
/The
(e)
7,100‌
$
266‌
Ruth's
Hospitality
Group
Inc
48,760‌
398‌
World
Fuel
Services
Corp
21,200‌
546‌
$
7,197‌
Savings
&
Loans
-
0.56%
Sterling
Bancorp/DE
78,400‌
919‌
Semiconductors
-
2.25%
Entegris
Inc
32,400‌
1,913‌
SiTime
Corp
(d)
37,300‌
1,769‌
$
3,682‌
Software
-
5.68%
Aspen
Technology
Inc
(d)
15,600‌
1,616‌
Ceridian
HCM
Holding
Inc
(d)
7,681‌
609‌
Cloudflare
Inc
(d)
32,900‌
1,183‌
Dynatrace
Inc
(d)
20,700‌
840‌
Manhattan
Associates
Inc
(d)
21,400‌
2,016‌
SolarWinds
Corp
(d),(e)
99,288‌
1,754‌
Sprout
Social
Inc
(d),(e)
48,100‌
1,299‌
$
9,317‌
Telecommunications
-
0.24%
Switch
Inc
22,200‌
396‌
TOTAL
COMMON
STOCKS
$
164,084‌
Total
Investments
$
171,417‌
Other
Assets
and
Liabilities
-  (4.52)%
(7,407‌)
TOTAL
NET
ASSETS
-
100.00%
$
164,010‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$5,634
or
3.44%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Sector
Percent
Consumer,
Non-cyclical
27.51‌%
Financial
22.12‌%
Industrial
15.72‌%
Technology
13.13‌%
Consumer,
Cyclical
11.48‌%
Money
Market
Funds
4.47‌%
Utilities
3.38‌%
Basic
Materials
2.31‌%
Energy
1.75‌%
Communications
1.48‌%
Diversified
1.17‌%
Other
Assets
and
Liabilities
(4.52‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SmallCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
186
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
10,018‌
$
88,224‌
$
93,183‌
$
5,059‌
$
10,018‌
$
88,224‌
$
93,183‌
$
5,059‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
9‌
$
—‌
$
—‌
$
—‌
$
9‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Glossary
to
the
Schedule
of
Investments
June
30,
2020
(unaudited)
See
accompanying
notes.
187
Currency
Abbreviations
USD/$
United
States
Dollar
See
accompanying
notes.
188
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
BOND
MARKET
INDEX
ACCOUNT
Class
1
shares
2020(c)
$
10.72‌
$
0.13‌
$
0.52‌
$
0.65‌
$
–‌
$
–‌
$
–‌
$
11.37‌
2019
10.15‌
0.28‌
0.58‌
0.86‌
(
0.29‌)
–‌
(
0.29‌)
10.72‌
2018
10.39‌
0.26‌
(
0
.28‌)
(
0.02‌)
(
0.22‌)
–‌
(
0.22‌)
10.15‌
2017
10.25‌
0.22‌
0.11‌
0.33‌
(
0.19‌)
–‌
(
0.19‌)
10.39‌
2016
10.20‌
0.19‌
0.05‌
0.24‌
(
0.19‌)
–‌
(
0.19‌)
10.25‌
2015
10.34‌
0.18‌
(
0.17‌)
0.01‌
(
0.15‌)
–‌
(
0.15‌)
10.20‌
CORE
PLUS
BOND
ACCOUNT
Class
1
shares
2020(c)
11.50‌
0.15‌
0.54‌
0.69‌
–‌
–‌
–‌
12.19‌
2019
10.81‌
0.34‌
0.72‌
1.06‌
(
0.37‌)
–‌
(
0.37‌)
11.50‌
2018
11.35‌
0.36‌
(
0.52‌)
(
0.16‌)
(
0.38‌)
–‌
(
0.38‌)
10.81‌
2017
11.15‌
0.35‌
0.18‌
0.53‌
(
0.33‌)
–‌
(
0.33‌)
11.35‌
2016
11.05‌
0.32‌
0.14‌
0.46‌
(
0.36‌)
–‌
(
0.36‌)
11.15‌
2015
11.46‌
0.32‌
(
0.37‌)
(
0.05‌)
(
0
.36‌)
–‌
(
0.36‌)
11.05‌
DIVERSIFIED
BALANCED
ACCOUNT
Class
1
shares
2020(c)
16.52‌
–‌
0.14‌
0.14‌
–‌
–‌
–‌
16.66‌
2019
14.87‌
0.36‌
2.34‌
2.70‌
(
0.35‌)
(
0.70‌)
(
1.05‌)
16.52‌
2018
15.98‌
0.31‌
(
0.78‌)
(
0.47‌)
(
0.43‌)
(
0.21‌)
(
0.64‌)
14.87‌
2017(h)
15.36‌
0.45‌
0.65‌
1.10‌
(
0.26‌)
(
0.22‌)
(
0.48‌)
15.98‌
Class
2
shares
2020(c)
16.55‌
(
0.02‌)
0.14‌
0.12‌
–‌
–‌
–‌
16.67‌
2019
14.88‌
0.32‌
2.36‌
2.68‌
(
0.31‌)
(
0.70‌)
(
1.01‌)
16.55‌
2018
15.99‌
0.27‌
(
0.78‌)
(
0.51‌)
(
0.39‌)
(
0.21‌)
(
0.60‌)
14.88‌
2017
14.76‌
0.35‌
1.32‌
1.67‌
(
0.22‌)
(
0.22‌)
(
0.44‌)
15.99‌
2016
14.11‌
0.22‌
0.75‌
0.97‌
(
0.18‌)
(
0.14‌)
(
0.32‌)
14.76‌
2015
14.39‌
0.19‌
(
0
.17‌)
0.02‌
(
0.14‌)
(
0.16‌)
(
0.30‌)
14.11‌
See
accompanying
notes.
189
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
6.06‌
%
(d)
$
2,529,459‌
0.14‌
%
(e)
–‌
%
2.28‌
%
(e)
85.3‌
%
(e)
8.47‌
2,539,460‌
0.15‌
(f)
–‌
2.60‌
93.6‌
(0.19‌)
2,213,355‌
0.15‌
(f)
–‌
2.52‌
123.1‌
3.27‌
2,448,068‌
0.23‌
(f)
–‌
2.10‌
108.9‌
2.29‌
2,184,608‌
0.25‌
–‌
1.86‌
118.5‌
0.13‌
1,937,655‌
0.25‌
–‌
1.77‌
154
.0‌
6.00‌
(d)
260,649‌
0.47‌
(e)
–‌
2.64‌
(e)
196.0‌
(e)
9.81‌
252,874‌
0.47‌
–‌
2.99‌
152.4‌
(1.41‌)
280,760‌
0.47‌
–‌
3.27‌
127.5‌
4.81‌
293,662‌
0.46‌
–‌
3.08‌
123.5‌
4.09‌
292,436‌
0.46‌
–‌
2.79‌
155.1‌
(0.48‌)
290,032‌
0.46‌
–‌
2.80‌
177.2‌
0.85‌
(d)
38,765‌
0.05‌
(e),(g)
–‌
(0
.05‌)
(e)
23.3‌
(e)
18.43‌
40,694‌
0.05‌
(g)
0.05‌
(g)
2.25‌
16.9‌
(3.14‌)
36,763‌
0.05‌
(g)
0.05‌
(g)
1.95‌
15.7‌
7.27‌
(d)
42,702‌
0.05‌
(e),(g)
0.05‌
(e),(g)
4.27‌
(e)
13.9‌
(e)
0.73‌
(d)
928,058‌
0.30‌
(e),(g)
–‌
(0.30‌)
(e)
23.3‌
(e)
18.23‌
988,264‌
0.30‌
(g)
0.30‌
(g),(i)
1.96‌
16.9‌
(3.40‌)
968,449‌
0.30‌
(g)
0.30‌
(g),(i)
1.69‌
15.7‌
11.43‌
1,131,373‌
0.30‌
(g)
0.30‌
(g),(i)
2.27‌
13.9‌
6.90‌
1,099,647‌
0.30‌
(g)
0.30‌
(g),(i)
1.51‌
14.1‌
0.16‌
1,031,111‌
0.30‌
(g)
0.30‌
(g),(i)
1.29‌
14.3‌
(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,
2020.
(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,
2017
date
operations
commenced,
through
December
31,
2017.
(i)
Excludes
expense
reimbursement
from
Manager.
See
accompanying
notes.
190
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
BALANCED
MANAGED
VOLATILITY
ACCOUNT
Class
2
shares
2020(c)
$
12.91‌
(
$
0.02‌)
$
0.11‌
$
0.09‌
$
–‌
$
–‌
$
–‌
$
13.00‌
2019
11.34‌
0.23‌
1.74‌
1.97‌
(
0.21‌)
(
0.19‌)
(
0.40‌)
12.91‌
2018
12.25‌
0.19‌
(
0.55‌)
(
0.36‌)
(
0.46‌)
(
0.09‌)
(
0.55‌)
11.34‌
2017
11.27‌
0.43‌
0.78‌
1.21‌
(
0.15‌)
(
0.08‌)
(
0.23‌)
12.25‌
2016
10.72‌
0.16‌
0.53‌
0.69‌
(
0.08‌)
(
0.06‌)
(
0.14‌)
11.27‌
2015
10.88‌
0.10‌
(
0.09‌)
0.01‌
(
0.09‌)
(
0.08‌)
(
0.17‌)
10.72‌
DIVERSIFIED
BALANCED
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2020(c)
11.71‌
(
0.02‌)
(
0.04‌)
(
0.06‌)
–‌
–‌
–‌
11.65‌
2019
10.31‌
0.28‌
1.30‌
1.58‌
(
0.09‌)
(
0.09‌)
(
0.18‌)
11.71‌
2018
10.80‌
0.20‌
(
0.58‌)
(
0.38‌)
(
0.08‌)
(
0.03‌)
(
0.11‌)
10.31‌
2017(i)
10.00‌
0.27‌
0.53‌
0.80‌
–‌
–‌
–‌
10.80‌
DIVERSIFIED
GROWTH
ACCOUNT
Class
2
shares
2020(c)
18.69‌
(
0.03‌)
(
0.20‌)
(
0.23‌)
–‌
–‌
–‌
18.46‌
2019
16.29‌
0.34‌
3.06‌
3.40‌
(
0.33‌)
(
0.67‌)
(
1.00‌)
18.69‌
2018
17.66‌
0.30‌
(
1.03‌)
(
0.73‌)
(
0.45‌)
(
0.19‌)
(
0.64‌)
16.29‌
2017
15.93‌
0.43‌
1.79‌
2.22‌
(
0.23‌)
(
0.26‌)
(
0.49‌)
17.66‌
2016
15.08‌
0.24‌
0.98‌
1.22‌
(
0.19‌)
(
0.18‌)
(
0.37‌)
15.93‌
2015
15.40‌
0.21‌
(
0.18‌)
0.03‌
(
0.16‌)
(
0.19‌)
(
0.35‌)
15.08‌
See
accompanying
notes.
191
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
0.70‌
%
(d)
$
170,099‌
0.31
%
(e),(f),(g)
–‌
%
(0.31‌)
%
(e)
24.6‌
%
(e)
17.48‌
176,235‌
0.31‌
(f),(g)
–‌
1.90‌
21.3‌
(3.20‌)
162,166‌
0.31‌
(f),(g)
–‌
1.59‌
16.2‌
10.90‌
181,005‌
0.31‌
(f),(g)
–‌
3.65‌
13.6‌
6.42‌
168,756‌
0.31‌
(f),(g)
–‌
1.48‌
13.6‌
0.01‌
138,384‌
0.31‌
(f),(g)
–‌
0.90‌
14.1‌
(0.51‌)
(d)
157,649‌
0.38‌
(e),(f),(g)
–‌
(0.30‌)
(e)
46.8‌
(e)
15.47‌
145,371‌
0.38‌
(f),(g)
–‌
2.47‌
33.1‌
(3.71‌)
(h)
66,983‌
0.38‌
(f),(g)
–‌
1.90‌
99.6‌
8.10‌
(d),(h)
36,522‌
0.39‌
(e),(f),(g)
–‌
3.36‌
(e)
8.0‌
(e)
(1.23‌)
(d)
3,548,205‌
0.30‌
(e),(g)
–‌
(0.30‌)
(e)
21.6‌
(e)
21.20‌
3,772,145‌
0.30‌
(g)
0.30‌
(g),(j)
1.89‌
16.0‌
(4.51‌)
(h)
3,488,312‌
0.30‌
(g)
0.30‌
(g),(j)
1.69‌
15.5‌
14.21‌
(h)
3,945,713‌
0.30‌
(g)
0.30‌
(g),(j)
2.52‌
10.9‌
8.14‌
3,588,901‌
0.30‌
(g)
0.30‌
(g),(j)
1.53‌
11.1‌
0.17‌
3,201,495‌
0.30‌
(g)
0.30‌
(g),(j)
1.37‌
10.7‌
(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,
2020.
(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)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
(i)
Period
from
March
30,
2017
date
operations
commenced,
through
December
31,
2017.
(j)
Excludes
expense
reimbursement
from
Manager.
See
accompanying
notes.
192
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
GROWTH
MANAGED
VOLATILITY
ACCOUNT
Class
2
shares
2020(c)
$
13.53‌
(
$
0.02‌)
(
$
0.14‌)
(
$
0.16‌)
$
–‌
$
–‌
$
–‌
$
13.37‌
2019
11.61‌
0.23‌
2.09‌
2.32‌
(
0.20‌)
(
0.20‌)
(
0.40‌)
13.53‌
2018
12.72‌
0.19‌
(
0.66‌)
(
0.47‌)
(
0.54‌)
(
0.10‌)
(
0.64‌)
11.61‌
2017
11.46‌
0.52‌
0.99‌
1.51‌
(
0.15‌)
(
0.10‌)
(
0.25‌)
12.72‌
2016
10.79‌
0.16‌
0.66‌
0.82‌
(
0.07‌)
(
0.08‌)
(
0.15‌)
11.46‌
2015
10.99‌
0.09‌
(
0.08‌)
0.01‌
(
0.11‌)
(
0.10‌)
(
0.21‌)
10.79‌
DIVERSIFIED
GROWTH
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2020(c)
12.00‌
(
0.02‌)
(
0.29‌)
(
0.31‌)
–‌
–‌
–‌
11.69‌
2019
10.37‌
0.26‌
1.55‌
1.81‌
(
0.10‌)
(
0.08‌)
(
0.18‌)
12.00‌
2018
10.97‌
0.21‌
(
0.71‌)
(
0.50‌)
(
0.07‌)
(
0.03‌)
(
0.10‌)
10.37‌
2017(h)
10.00‌
0.30‌
0.67‌
0.97‌
–‌
–‌
–‌
10.97‌
DIVERSIFIED
INCOME
ACCOUNT
Class
2
shares
2020(c)
13.82‌
(
0.02‌)
0.37‌
0.35‌
–‌
–‌
–‌
14.17‌
2019
12.46‌
0.29‌
1.58‌
1.87‌
(
0.22‌)
(
0.29‌)
(
0.51‌)
13.82‌
2018
13.12‌
0.22‌
(
0.51‌)
(
0.29‌)
(
0.28‌)
(
0.09‌)
(
0.37‌)
12.46‌
2017
12.34‌
0.26‌
0.82‌
1.08‌
(
0.18‌)
(
0.12‌)
(
0.30‌)
13.12‌
2016
11.87‌
0.19‌
0.47‌
0.66‌
(
0.12‌)
(
0.07‌)
(
0.19‌)
12.34‌
2015
12.03‌
0.15‌
(
0.12‌)
0.03‌
(
0.10‌)
(
0.09‌)
(
0.19‌)
11.87‌
See
accompanying
notes.
193
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(1.18‌)
%
(d)
$
341,989‌
0.30
%
(e),(f),(g)
–‌
%
(0.30‌)
%
(e)
22.7‌
%
(e)
20.18‌
353,687‌
0.31‌
(f),(g)
–‌
1.80‌
18.8‌
(4.07‌)
325,228‌
0.30‌
(f),(g)
–‌
1.53‌
16.3‌
13.34‌
355,062‌
0.30‌
(f),(g)
–‌
4.30‌
12.5‌
7.56‌
313,672‌
0.30‌
(f),(g)
–‌
1.49‌
11.7‌
0.06‌
252,611‌
0.30‌
(f),(g)
–‌
0.82‌
11.5‌
(2.58‌)
(d)
824,786‌
0.37‌
(e),(g)
–‌
(0.33‌)
(e)
40.1‌
(e)
17.57‌
765,417‌
0.37‌
(f),(g)
–‌
2.32‌
36.2‌
(4.60‌)
384,706‌
0.37‌
(f),(g)
–‌
1.96‌
103.6‌
9.70‌
(d)
171,769‌
0.38‌
(e),(f),(g)
–‌
3.80‌
(e)
0.9‌
(e)
2.53‌
(d)
285,040‌
0.31‌
(e),(g)
0.31‌
(e),(g),(i)
(0.31‌)
(e)
33.3‌
(e)
15.16‌
279,888‌
0.31‌
(g)
0.31‌
(g),(i)
2.16‌
25.6‌
(2.38‌)
241,331‌
0.30‌
(g)
0.30‌
(g),(i)
1.72‌
22.8‌
8.81‌
268,135‌
0.30‌
(g)
0.30‌
(g),(i)
2.06‌
21.2‌
5.56‌
254,001‌
0.30‌
(g)
0.30‌
(g),(i)
1.56‌
19.3‌
0.16‌
198,762‌
0.30‌
(g)
0.30‌
(g),(i)
1.25‌
20.1‌
(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,
2020.
(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
March
30,
2017
date
operations
commenced,
through
December
31,
2017.
(i)
Excludes
expense
reimbursement
from
Manager.
See
accompanying
notes.
194
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
INTERNATIONAL
ACCOUNT
Class
1
shares
2020(c)
$
15
.71‌
$
0
.11‌
(
$
1
.54‌
)
(
$
1
.43‌
)
$
–‌
$
–‌
$
–‌
$
14
.28‌
2019
13
.72‌
0
.28‌
2
.75‌
3
.03‌
(
0
.26‌
)
(
0
.78‌
)
(
1
.04‌
)
15
.71‌
2018
17
.01‌
0
.31‌
(
3
.25‌
)
(
2
.94‌
)
(
0
.35‌
)
–‌
(
0
.35‌
)
13
.72‌
2017
13
.42‌
0
.21‌
3
.67‌
3
.88‌
(
0
.29‌
)
–‌
(
0
.29‌
)
17
.01‌
2016
13
.68‌
0
.24‌
(
0
.18‌
)
0
.06‌
(
0
.32‌
)
–‌
(
0
.32‌
)
13
.42‌
2015
14
.08‌
0
.26‌
(
0
.29‌
)
(
0
.03‌
)
(
0
.37‌
)
–‌
(
0
.37‌
)
13
.68‌
EQUITY
INCOME
ACCOUNT
Class
1
shares
2020(c)
28
.19‌
0
.30‌
(
4
.44‌
)
(
4
.14‌
)
–‌
–‌
–‌
24
.05‌
2019
22
.86‌
0
.56‌
6
.00‌
6
.56‌
(
0
.51‌
)
(
0
.72‌
)
(
1
.23‌
)
28
.19‌
2018
26
.08‌
0
.64‌
(
1
.72‌
)
(
1
.08‌
)
(
0
.52‌
)
(
1
.62‌
)
(
2
.14‌
)
22
.86‌
2017
23
.20‌
0
.56‌
4
.14‌
4
.70‌
(
0
.58‌
)
(
1
.24‌
)
(
1
.82‌
)
26
.08‌
2016
21
.67‌
0
.57‌
2
.77‌
3
.34‌
(
0
.64‌
)
(
1
.17‌
)
(
1
.81‌
)
23
.20‌
2015
23
.12‌
0
.58‌
(
1
.46‌
)
(
0
.88‌
)
(
0
.57‌
)
–‌
(
0
.57‌
)
21
.67‌
Class
2
shares
2020(c)
27
.93‌
0
.27‌
(
4
.40‌
)
(
4
.13‌
)
–‌
–‌
–‌
23
.80‌
2019
22
.66‌
0
.49‌
5
.95‌
6
.44‌
(
0
.45‌
)
(
0
.72‌
)
(
1
.17‌
)
27
.93‌
2018
25
.87‌
0
.57‌
(
1
.70‌
)
(
1
.13‌
)
(
0
.46‌
)
(
1
.62‌
)
(
2
.08‌
)
22
.66‌
2017
23
.03‌
0
.49‌
4
.11‌
4
.60‌
(
0
.52‌
)
(
1
.24‌
)
(
1
.76‌
)
25
.87‌
2016
21
.52‌
0
.51‌
2
.75‌
3
.26‌
(
0
.58‌
)
(
1
.17‌
)
(
1
.75‌
)
23
.03‌
2015
22
.96‌
0
.52‌
(
1
.45‌
)
(
0
.93‌
)
(
0
.51‌
)
–‌
(
0
.51‌
)
21
.52‌
GOVERNMENT
&
HIGH
QUALITY
BOND
ACCOUNT
Class
1
shares
2020(c)
9
.81‌
0
.06‌
0
.18‌
0
.24‌
–‌
–‌
–‌
10
.05‌
2019
9
.47‌
0
.22‌
0
.39‌
0
.61‌
(
0
.27‌
)
–‌
(
0
.27‌
)
9
.81‌
2018
9
.76‌
0
.23‌
(
0
.15‌
)
0
.08‌
(
0
.37‌
)
–‌
(
0
.37‌
)
9
.47‌
2017
9
.98‌
0
.31‌
(
0
.12‌
)
0
.19‌
(
0
.41‌
)
–‌
(
0
.41‌
)
9
.76‌
2016
10
.16‌
0
.33‌
(
0
.14‌
)
0
.19‌
(
0
.37‌
)
–‌
(
0
.37‌
)
9
.98‌
2015
10
.44‌
0
.27‌
(
0
.19‌
)
0
.08‌
(
0
.35‌
)
(
0
.01‌
)
(
0
.36‌
)
10
.16‌
INTERNATIONAL
EMERGING
MARKETS
ACCOUNT
Class
1
shares
2020(c)
17
.13‌
0
.06‌
(
1
.71‌
)
(
1
.65‌
)
–‌
–‌
–‌
15
.48‌
2019
15
.12‌
0
.40‌
2
.20‌
2
.60‌
(
0
.15‌
)
(
0
.44‌
)
(
0
.59‌
)
17
.13‌
2018
19
.40‌
0
.19‌
(
4
.25‌
)
(
4
.06‌
)
(
0
.22‌
)
–‌
(
0
.22‌
)
15
.12‌
2017
13
.94‌
0
.15‌
5
.53‌
5
.68‌
(
0
.22‌
)
–‌
(
0
.22‌
)
19
.40‌
2016
12
.88‌
0
.14‌
1
.08‌
1
.22‌
(
0
.16‌
)
–‌
(
0
.16‌
)
13
.94‌
2015
15
.21‌
0
.17‌
(
2
.25‌
)
(
2
.08‌
)
(
0
.25‌
)
–‌
(
0
.25‌
)
12
.88‌
See
accompanying
notes.
195
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
9
.10‌
)
%
(d)
$
232,224‌
0
.92‌
%
(e)
1
.64‌
%
(e)
50
.0‌
%
(e)
22
.69‌
266,768‌
0
.93‌
1
.86‌
43
.7‌
(
17
.54‌
)
233,612‌
0
.91‌
1
.91‌
59
.3‌
29
.06‌
292,975‌
0
.91‌
1
.37‌
42
.8‌
0
.36‌
243,997‌
0
.91‌
1
.77‌
56
.8‌
(
0
.35‌
)
273,300‌
0
.88‌
1
.80‌
48
.2‌
(
14
.69‌
)
(d)
626,137‌
0
.48‌
(e)
2
.48‌
(e)
25
.3‌
(e)
29
.09‌
741,311‌
0
.47‌
2
.16‌
17
.9‌
(
5
.01‌
)
636,177‌
0
.49‌
2
.47‌
13
.2‌
21
.08‌
572,629‌
0
.50‌
2
.26‌
15
.9‌
15
.72‌
525,829‌
0
.50‌
2
.54‌
17
.1‌
(
3
.93‌
)
513,126‌
0
.49‌
2
.54‌
10
.7‌
(
14
.79‌
)
(d)
25,671‌
0
.73‌
(e)
2
.23‌
(e)
25
.3‌
(e)
28
.78‌
31,874‌
0
.72‌
1
.91‌
17
.9‌
(
5
.24‌
)
25,207‌
0
.74‌
2
.23‌
13
.2‌
20
.77‌
27,469‌
0
.75‌
2
.00‌
15
.9‌
15
.43‌
24,197‌
0
.75‌
2
.29‌
17
.1‌
(
4
.15‌
)
23,215‌
0
.74‌
2
.29‌
10
.7‌
2
.45‌
(d)
241,728‌
0
.51‌
(e)
1
.30‌
(e)
52
.3‌
(e)
6
.45‌
241,332‌
0
.51‌
2
.26‌
22
.5‌
0
.91‌
219,612‌
0
.51‌
2
.43‌
17
.4‌
1
.88‌
241,839‌
0
.51‌
3
.09‌
24
.3‌
1
.80‌
247,620‌
0
.51‌
3
.25‌
25
.8‌
0
.79‌
286,659‌
0
.51‌
2
.61‌
21
.9‌
(
9
.63‌
)
(d)
76,063‌
1
.20‌
(e)
,(f)
0
.78‌
(e)
69
.5‌
(e)
17
.60‌
89,729‌
1
.20‌
(f)
2
.46‌
112
.5‌
(
21
.02‌
)
83,366‌
1
.35‌
(f)
1
.05‌
121
.8‌
40
.84‌
114,735‌
1
.35‌
(f)
0
.91‌
98
.6‌
9
.40‌
(g)
85,677‌
1
.40‌
(f)
1
.07‌
115
.0‌
(
13
.81‌
)
85,434‌
1
.37‌
1
.18‌
97
.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,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
(f)
Reflects
Manager's
contractual
expense
limit.
(g)
During
2016,
the
Account
experienced
a
significant
one-time
gain
of
approximately
$0.07/share
as
the
result
of
a
settlement
in
a
litigation
proceeding.
If
such
gain
had
not
been
recognized,
the
total
return
amounts
expressed
herein
would
have
been
lower.
See
accompanying
notes.
196
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
LARGECAP
GROWTH
ACCOUNT
I
Class
1
shares
2020(c)
$
37
.64‌
(
$
0
.02‌
)
$
3
.99‌
$
3
.97‌
$
–‌
$
–‌
$
–‌
$
41
.61‌
2019
30
.10‌
0
.01‌
10
.27‌
10
.28‌
(
0
.02‌
)
(
2
.72‌
)
(
2
.74‌
)
37
.64‌
2018
31
.18‌
0
.03‌
1
.41‌
1
.44‌
(
0
.01‌
)
(
2
.51‌
)
(
2
.52‌
)
30
.10‌
2017
24
.55‌
0
.01‌
8
.13‌
8
.14‌
(
0
.01‌
)
(
1
.50‌
)
(
1
.51‌
)
31
.18‌
2016
26
.33‌
0
.01‌
0
.34‌
0
.35‌
–‌
(
2
.13‌
)
(
2
.13‌
)
24
.55‌
2015
28
.70‌
0
.02‌
2
.26‌
2
.28‌
(
0
.07‌
)
(
4
.58‌
)
(
4
.65‌
)
26
.33‌
LARGECAP
S&P
500
INDEX
ACCOUNT
Class
1
shares
2020(c)
20
.19‌
0
.17‌
(
0
.82‌
)
(
0
.65‌
)
–‌
–‌
–‌
19
.54‌
2019
16
.39‌
0
.34‌
4
.66‌
5
.00‌
(
0
.37‌
)
(
0
.83‌
)
(
1
.20‌
)
20
.19‌
2018
18
.06‌
0
.36‌
(
1
.06‌
)
(
0
.70‌
)
(
0
.32‌
)
(
0
.65‌
)
(
0
.97‌
)
16
.39‌
2017
15
.44‌
0
.29‌
2
.97‌
3
.26‌
(
0
.29‌
)
(
0
.35‌
)
(
0
.64‌
)
18
.06‌
2016
14
.41‌
0
.29‌
1
.36‌
1
.65‌
(
0
.25‌
)
(
0
.37‌
)
(
0
.62‌
)
15
.44‌
2015
14
.63‌
0
.27‌
(
0
.09‌
)
0
.18‌
(
0
.22‌
)
(
0
.18‌
)
(
0
.40‌
)
14
.41‌
Class
2
shares
2020(c)
19
.97‌
0
.14‌
(
0
.81‌
)
(
0
.67‌
)
–‌
–‌
–‌
19
.30‌
2019
16
.24‌
0
.29‌
4
.62‌
4
.91‌
(
0
.35‌
)
(
0
.83‌
)
(
1
.18‌
)
19
.97‌
2018
17
.95‌
0
.32‌
(
1
.07‌
)
(
0
.75‌
)
(
0
.31‌
)
(
0
.65‌
)
(
0
.96‌
)
16
.24‌
2017
15
.38‌
0
.25‌
2
.95‌
3
.20‌
(
0
.28‌
)
(
0
.35‌
)
(
0
.63‌
)
17
.95‌
2016
14
.39‌
0
.26‌
1
.35‌
1
.61‌
(
0
.25‌
)
(
0
.37‌
)
(
0
.62‌
)
15
.38‌
2015(g)
15
.07‌
0
.17‌
(
0
.45‌
)
(
0
.28‌
)
(
0
.22‌
)
(
0
.18‌
)
(
0
.40‌
)
14
.39‌
LARGECAP
S&P
500
MANAGED
VOLATILITY
INDEX
ACCOUNT
Class
1
shares
2020(c)
15
.06‌
0
.10‌
(
0
.54‌
)
(
0
.44‌
)
–‌
–‌
–‌
14
.62‌
2019
12
.74‌
0
.23‌
3
.36‌
3
.59‌
(
0
.24‌
)
(
1
.03‌
)
(
1
.27‌
)
15
.06‌
2018
13
.42‌
0
.23‌
(
0
.71‌
)
(
0
.48‌
)
(
0
.20‌
)
–‌
(
0
.20‌
)
12
.74‌
2017
12
.15‌
0
.18‌
2
.11‌
2
.29‌
(
0
.18‌
)
(
0
.84‌
)
(
1
.02‌
)
13
.42‌
2016
11
.27‌
0
.19‌
0
.96‌
1
.15‌
(
0
.12‌
)
(
0
.15‌
)
(
0
.27‌
)
12
.15‌
2015
11
.22‌
0
.16‌
(
0
.07‌
)
0
.09‌
–‌
(
0
.04‌
)
(
0
.04‌
)
11
.27‌
See
accompanying
notes.
197
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
10
.55‌
%
(d)
$
543,253‌
0
.69‌
%
(e)
,(f)
(
0
.10‌
)
%
(e)
45
.5‌
%
(e)
34
.92‌
502,653‌
0
.71‌
(f)
0
.03‌
30
.4‌
3
.60‌
296,139‌
0
.74‌
(f)
0
.08‌
36
.9‌
33
.71‌
302,147‌
0
.75‌
(f)
0
.03‌
36
.2‌
1
.26‌
244,058‌
0
.76‌
(f)
0
.04‌
36
.8‌
7
.77‌
252,386‌
0
.76‌
(f)
0
.07‌
38
.6‌
(
3
.22‌
)
(d)
2,542,734‌
0
.25‌
(e)
1
.77‌
(e)
11
.9‌
(e)
31
.10‌
2,693,344‌
0
.25‌
1
.80‌
3
.5‌
(
4
.58‌
)
2,378,088‌
0
.25‌
1
.94‌
8
.7‌
21
.49‌
2,563,986‌
0
.25‌
1
.71‌
3
.0‌
11
.59‌
2,262,283‌
0
.25‌
1
.96‌
6
.4‌
1
.14‌
2,033,459‌
0
.25‌
1
.82‌
6
.3‌
(
3
.36‌
)
(d)
18,753‌
0
.50‌
(e)
1
.52‌
(e)
11
.9‌
(e)
30
.82‌
15,834‌
0
.50‌
1
.56‌
3
.5‌
(
4
.90‌
)
7,081‌
0
.50‌
1
.77‌
8
.7‌
21
.20‌
3,234‌
0
.50‌
1
.46‌
3
.0‌
11
.30‌
766‌
0
.50‌
1
.74‌
6
.4‌
(
1
.95‌
)
(d)
161‌
0
.50‌
(e)
1
.78‌
(e)
6
.3‌
(e)
(
2
.92‌
)
(d)
212,496‌
0
.46‌
(e)
1
.50‌
(e)
11
.1‌
(e)
28
.92‌
217,779‌
0
.47‌
1
.59‌
3
.8‌
(
3
.73‌
)
205,655‌
0
.46‌
1
.64‌
11
.2‌
19
.55‌
222,026‌
0
.46‌
(f)
1
.40‌
3
.0‌
10
.33‌
198,548‌
0
.46‌
(f)
1
.63‌
4
.8‌
0
.83‌
161,654‌
0
.47‌
(f)
1
.46‌
5
.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,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
(f)
Reflects
Manager's
contractual
expense
limit.
(g)
Period
from
May
1,
2015
date
operations
commenced,
through
December
31,
2015.
See
accompanying
notes.
198
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
MIDCAP
ACCOUNT
Class
1
shares
2020(c)
$
59
.93‌
$
0
.07‌
(
$
2
.99‌
)
(
$
2
.92‌
)
$
–‌
$
–‌
$
–‌
$
57
.01‌
2019
48
.53‌
0
.43‌
19
.93‌
20
.36‌
(
0
.17‌
)
(
8
.79‌
)
(
8
.96‌
)
59
.93‌
2018
59
.42‌
0
.17‌
(
2
.93‌
)
(
2
.76‌
)
(
0
.17‌
)
(
7
.96‌
)
(
8
.13‌
)
48
.53‌
2017
50
.96‌
0
.19‌
12
.48‌
12
.67‌
(
0
.32‌
)
(
3
.89‌
)
(
4
.21‌
)
59
.42‌
2016
55
.24‌
0
.33‌
5
.30‌
5
.63‌
(
0
.24‌
)
(
9
.67‌
)
(
9
.91‌
)
50
.96‌
2015
60
.79‌
0
.22‌
1
.19‌
1
.41‌
(
0
.32‌
)
(
6
.64‌
)
(
6
.96‌
)
55
.24‌
Class
2
shares
2020(c)
59
.42‌
–‌
(
2
.97‌
)
(
2
.97‌
)
–‌
–‌
–‌
56
.45‌
2019
48
.19‌
0
.28‌
19
.77‌
20
.05‌
(
0
.03‌
)
(
8
.79‌
)
(
8
.82‌
)
59
.42‌
2018
59
.05‌
0
.02‌
(
2
.89‌
)
(
2
.87‌
)
(
0
.03‌
)
(
7
.96‌
)
(
7
.99‌
)
48
.19‌
2017
50
.69‌
0
.05‌
12
.39‌
12
.44‌
(
0
.19‌
)
(
3
.89‌
)
(
4
.08‌
)
59
.05‌
2016
54
.97‌
0
.20‌
5
.27‌
5
.47‌
(
0
.08‌
)
(
9
.67‌
)
(
9
.75‌
)
50
.69‌
2015
60
.54‌
0
.07‌
1
.17‌
1
.24‌
(
0
.17‌
)
(
6
.64‌
)
(
6
.81‌
)
54
.97‌
PRINCIPAL
CAPITAL
APPRECIATION
ACCOUNT
Class
1
shares
2020(c)
30
.72‌
0
.17‌
(
1
.23‌
)
(
1
.06‌
)
–‌
–‌
–‌
29
.66‌
2019
25
.86‌
0
.38‌
7
.77‌
8
.15‌
(
0
.50‌
)
(
2
.79‌
)
(
3
.29‌
)
30
.72‌
2018
28
.54‌
0
.44‌
(
1
.19‌
)
(
0
.75‌
)
(
0
.34‌
)
(
1
.59‌
)
(
1
.93‌
)
25
.86‌
2017
23
.94‌
0
.28‌
4
.66‌
4
.94‌
(
0
.34‌
)
–‌
(
0
.34‌
)
28
.54‌
2016
22
.35‌
0
.30‌
1
.73‌
2
.03‌
(
0
.26‌
)
(
0
.18‌
)
(
0
.44‌
)
23
.94‌
2015
22
.31‌
0
.30‌
0
.20‌
0
.50‌
(
0
.06‌
)
(
0
.40‌
)
(
0
.46‌
)
22
.35‌
Class
2
shares
2020(c)
30
.32‌
0
.13‌
(
1
.21‌
)
(
1
.08‌
)
–‌
–‌
–‌
29
.24‌
2019
25
.58‌
0
.30‌
7
.67‌
7
.97‌
(
0
.44‌
)
(
2
.79‌
)
(
3
.23‌
)
30
.32‌
2018
28
.25‌
0
.37‌
(
1
.17‌
)
(
0
.80‌
)
(
0
.28‌
)
(
1
.59‌
)
(
1
.87‌
)
25
.58‌
2017
23
.71‌
0
.22‌
4
.60‌
4
.82‌
(
0
.28‌
)
–‌
(
0
.28‌
)
28
.25‌
2016
22
.14‌
0
.24‌
1
.72‌
1
.96‌
(
0
.21‌
)
(
0
.18‌
)
(
0
.39‌
)
23
.71‌
2015
22
.11‌
0
.23‌
0
.21‌
0
.44‌
(
0
.01‌
)
(
0
.40‌
)
(
0
.41‌
)
22
.14‌
PRINCIPAL
LIFETIME
2010
ACCOUNT
Class
1
shares
2020(c)
12
.75‌
0
.09‌
0
.12‌
0
.21‌
–‌
–‌
–‌
12
.96‌
2019
12
.18‌
0
.32‌
1
.37‌
1
.69‌
(
0
.39‌
)
(
0
.73‌
)
(
1
.12‌
)
12
.75‌
2018
13
.41‌
0
.32‌
(
0
.80‌
)
(
0
.48‌
)
(
0
.41‌
)
(
0
.34‌
)
(
0
.75‌
)
12
.18‌
2017
12
.48‌
0
.34‌
1
.07‌
1
.41‌
(
0
.29‌
)
(
0
.19‌
)
(
0
.48‌
)
13
.41‌
2016
12
.18‌
0
.27‌
0
.37‌
0
.64‌
(
0
.27‌
)
(
0
.07‌
)
(
0
.34‌
)
12
.48‌
2015
12
.60‌
0
.25‌
(
0
.39‌
)
(
0
.14‌
)
(
0
.28‌
)
–‌
(
0
.28‌
)
12
.18‌
See
accompanying
notes.
199
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
4
.89‌
)
%
(d)
,(e)
$
521,494‌
0
.55‌
%
(f)
0
.25‌
%
(f)
19
.1‌
%
(f)
43
.10‌
(e)
587,854‌
0
.55‌
0
.72‌
10
.5‌
(
6
.55‌
)
474,365‌
0
.54‌
0
.29‌
24
.6‌
25
.51‌
575,104‌
0
.54‌
0
.34‌
13
.4‌
10
.37‌
576,634‌
0
.54‌
0
.62‌
13
.6‌
1
.64‌
617,437‌
0
.53‌
0
.37‌
26
.3‌
(
5
.00‌
)
(d)
18,947‌
0
.80‌
(f)
0
.00‌
(f)
19
.1‌
(f)
42
.72‌
(e)
20,808‌
0
.80‌
0
.48‌
10
.5‌
(
6
.79‌
)
(e)
15,710‌
0
.79‌
0
.04‌
24
.6‌
25
.19‌
(e)
17,792‌
0
.79‌
0
.09‌
13
.4‌
10
.11‌
14,985‌
0
.79‌
0
.38‌
13
.6‌
1
.37‌
15,243‌
0
.78‌
0
.12‌
26
.3‌
(
3
.45‌
)
(d)
129,880‌
0
.64‌
(f)
1
.17‌
(f)
50
.0‌
(f)
32
.49‌
143,227‌
0
.64‌
1
.27‌
29
.5‌
(
3
.41‌
)
128,547‌
0
.63‌
1
.52‌
44
.9‌
20
.75‌
154,472‌
0
.63‌
1
.07‌
28
.5‌
9
.11‌
147,193‌
0
.63‌
1
.31‌
33
.7‌
2
.18‌
154,732‌
0
.64‌
1
.33‌
22
.1‌
(g)
(
3
.56‌
)
(d)
13,129‌
0
.89‌
(f)
0
.93‌
(f)
50
.0‌
(f)
32
.10‌
13,536‌
0
.89‌
1
.03‌
29
.5‌
(
3
.64‌
)
(e)
8,757‌
0
.88‌
1
.28‌
44
.9‌
20
.46‌
(e)
8,526‌
0
.88‌
0
.83‌
28
.5‌
8
.85‌
7,420‌
0
.88‌
1
.06‌
33
.7‌
1
.94‌
7,517‌
0
.89‌
1
.05‌
22
.1‌
(g)
1
.65‌
(d)
33,516‌
0
.03‌
(f)
,(h)
1
.44‌
(f)
40
.6‌
(f)
14
.10‌
31,499‌
0
.04‌
(h)
2
.51‌
60
.8‌
(
3
.87‌
)
31,890‌
0
.02‌
(h)
2
.43‌
29
.0‌
11
.42‌
41,836‌
0
.01‌
(h)
2
.57‌
21
.7‌
5
.25‌
42,641‌
0
.02‌
(h)
2
.16‌
28
.9‌
(
1
.17‌
)
41,132‌
0
.04‌
(h)
2
.00‌
24
.6‌
(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,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
(f)
Computed
on
an
annualized
basis.
(g)
Portfolio
turnover
rate
excludes
approximately
$1,237,000
of
purchases
from
portfolio
realignment
from
the
acquisition
of
LargeCap
Blend
Account
II.
(h)
Does
not
include
expenses
of
the
investment
companies
in
which
the
Account
invests.
See
accompanying
notes.
200
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
LIFETIME
2020
ACCOUNT
Class
1
shares
2020(c)
$
13
.90‌
$
0
.07‌
(
$
0
.14‌
)
(
$
0
.07‌
)
$
–‌
$
–‌
$
–‌
$
13
.83‌
2019
12
.60‌
0
.34‌
1
.90‌
2
.24‌
(
0
.34‌
)
(
0
.60‌
)
(
0
.94‌
)
13
.90‌
2018
14
.11‌
0
.33‌
(
1
.04‌
)
(
0
.71‌
)
(
0
.38‌
)
(
0
.42‌
)
(
0
.80‌
)
12
.60‌
2017
12
.66‌
0
.36‌
1
.52‌
1
.88‌
(
0
.27‌
)
(
0
.16‌
)
(
0
.43‌
)
14
.11‌
2016
12
.64‌
0
.26‌
0
.47‌
0
.73‌
(
0
.25‌
)
(
0
.46‌
)
(
0
.71‌
)
12
.66‌
2015
13
.77‌
0
.24‌
(
0
.37‌
)
(
0
.13‌
)
(
0
.36‌
)
(
0
.64‌
)
(
1
.00‌
)
12
.64‌
PRINCIPAL
LIFETIME
2030
ACCOUNT
Class
1
shares
2020(c)
13
.12‌
0
.05‌
(
0
.37‌
)
(
0
.32‌
)
–‌
–‌
–‌
12
.80‌
2019
11
.58‌
0
.32‌
2
.18‌
2
.50‌
(
0
.27‌
)
(
0
.69‌
)
(
0
.96‌
)
13
.12‌
2018
13
.17‌
0
.29‌
(
1
.15‌
)
(
0
.86‌
)
(
0
.32‌
)
(
0
.41‌
)
(
0
.73‌
)
11
.58‌
2017
11
.45‌
0
.34‌
1
.73‌
2
.07‌
(
0
.20‌
)
(
0
.15‌
)
(
0
.35‌
)
13
.17‌
2016
11
.45‌
0
.22‌
0
.45‌
0
.67‌
(
0
.19‌
)
(
0
.48‌
)
(
0
.67‌
)
11
.45‌
2015
12
.34‌
0
.20‌
(
0
.30‌
)
(
0
.10‌
)
(
0
.32‌
)
(
0
.47‌
)
(
0
.79‌
)
11
.45‌
PRINCIPAL
LIFETIME
2040
ACCOUNT
Class
1
shares
2020(c)
16
.22‌
0
.04‌
(
0
.70‌
)
(
0
.66‌
)
–‌
–‌
–‌
15
.56‌
2019
13
.94‌
0
.37‌
3
.01‌
3
.38‌
(
0
.30‌
)
(
0
.80‌
)
(
1
.10‌
)
16
.22‌
2018
15
.97‌
0
.34‌
(
1
.50‌
)
(
1
.16‌
)
(
0
.33‌
)
(
0
.54‌
)
(
0
.87‌
)
13
.94‌
2017
13
.52‌
0
.36‌
2
.41‌
2
.77‌
(
0
.20‌
)
(
0
.12‌
)
(
0
.32‌
)
15
.97‌
2016
13
.53‌
0
.22‌
0
.51‌
0
.73‌
(
0
.20‌
)
(
0
.54‌
)
(
0
.74‌
)
13
.52‌
2015
14
.50‌
0
.22‌
(
0
.31‌
)
(
0
.09‌
)
(
0
.36‌
)
(
0
.52‌
)
(
0
.88‌
)
13
.53‌
PRINCIPAL
LIFETIME
2050
ACCOUNT
Class
1
shares
2020(c)
15
.59‌
0
.03‌
(
0
.84‌
)
(
0
.81‌
)
–‌
–‌
–‌
14
.78‌
2019
13
.37‌
0
.32‌
3
.12‌
3
.44‌
(
0
.29‌
)
(
0
.93‌
)
(
1
.22‌
)
15
.59‌
2018
15
.62‌
0
.31‌
(
1
.53‌
)
(
1
.22‌
)
(
0
.33‌
)
(
0
.70‌
)
(
1
.03‌
)
13
.37‌
2017
13
.06‌
0
.32‌
2
.55‌
2
.87‌
(
0
.19‌
)
(
0
.12‌
)
(
0
.31‌
)
15
.62‌
2016
13
.07‌
0
.21‌
0
.52‌
0
.73‌
(
0
.18‌
)
(
0
.56‌
)
(
0
.74‌
)
13
.06‌
2015
14
.18‌
0
.20‌
(
0
.26‌
)
(
0
.06‌
)
(
0
.38‌
)
(
0
.67‌
)
(
1
.05‌
)
13
.07‌
See
accompanying
notes.
201
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
0
.50‌
)
%
(d)
$
169,920‌
0
.01‌
%
(e)
,(f)
1
.12‌
%
(e)
38
.0‌
%
(e)
18
.12‌
190,475‌
0
.01‌
(f)
2
.47‌
52
.7‌
(
5
.40‌
)
172,173‌
0
.01‌
(f)
2
.37‌
28
.7‌
15
.00‌
197,935‌
0
.00‌
(f)
2
.64‌
23
.6‌
5
.76‌
186,646‌
0
.01‌
(f)
2
.03‌
17
.7‌
(
1
.13‌
)
190,987‌
0
.03‌
(f)
1
.79‌
27
.6‌
(
2
.44‌
)
(d)
190,041‌
0
.01‌
(e)
,(f)
0
.77‌
(e)
34
.3‌
(e)
22
.01‌
182,172‌
0
.01‌
(f)
2
.47‌
35
.8‌
(
7
.06‌
)
140,617‌
0
.01‌
(f)
2
.21‌
28
.6‌
18
.26‌
152,469‌
0
.01‌
(f)
2
.77‌
31
.0‌
5
.87‌
123,825‌
0
.01‌
(f)
1
.89‌
22
.4‌
(
1
.05‌
)
116,691‌
0
.04‌
(f)
1
.67‌
31
.3‌
(
4
.07‌
)
(d)
84,834‌
0
.01‌
(e)
,(f)
0
.57‌
(e)
24
.2‌
(e)
24
.74‌
85,405‌
0
.02‌
(f)
2
.36‌
28
.8‌
(
7
.85‌
)
62,741‌
0
.01‌
(f)
2
.17‌
14
.5‌
20
.68‌
63,759‌
0
.01‌
(f)
2
.43‌
28
.3‌
5
.45‌
49,980‌
0
.02‌
(f)
1
.68‌
30
.4‌
(
0
.85‌
)
45,261‌
0
.04‌
(f)
1
.52‌
24
.2‌
(
5
.20‌
)
(d)
38,957‌
0
.03‌
(e)
,(f)
0
.36‌
(e)
17
.1‌
(e)
26
.39‌
38,881‌
0
.04‌
(f)
2
.11‌
24
.9‌
(
8
.64‌
)
30,354‌
0
.02‌
(f)
2
.03‌
22
.6‌
22
.14‌
31,610‌
0
.02‌
(f)
2
.23‌
36
.5‌
5
.58‌
26,674‌
0
.03‌
(f)
1
.64‌
33
.1‌
(
0
.69‌
)
23,502‌
0
.05‌
(f)
1
.46‌
26
.6‌
(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,
2020.
(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.
See
accompanying
notes.
202
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
LIFETIME
2060
ACCOUNT
Class
1
shares
2020(c)
$
14
.68‌
$
0
.01‌
(
$
0
.90‌
)
(
$
0
.89‌
)
$
–‌
$
–‌
$
–‌
$
13
.79‌
2019
12
.32‌
0
.30‌
2
.99‌
3
.29‌
(
0
.20‌
)
(
0
.73‌
)
(
0
.93‌
)
14
.68‌
2018
14
.38‌
0
.25‌
(
1
.47‌
)
(
1
.22‌
)
(
0
.31‌
)
(
0
.53‌
)
(
0
.84‌
)
12
.32‌
2017
11
.88‌
0
.40‌
2
.29‌
2
.69‌
(
0
.12‌
)
(
0
.07‌
)
(
0
.19‌
)
14
.38‌
2016
11
.75‌
0
.18‌
0
.46‌
0
.64‌
(
0
.13‌
)
(
0
.38‌
)
(
0
.51‌
)
11
.88‌
2015
12
.19‌
0
.20‌
(
0
.28‌
)
(
0
.08‌
)
(
0
.15‌
)
(
0
.21‌
)
(
0
.36‌
)
11
.75‌
PRINCIPAL
LIFETIME
STRATEGIC
INCOME
ACCOUNT
Class
1
shares
2020(c)
11
.92‌
0
.10‌
0
.15‌
0
.25‌
–‌
–‌
–‌
12
.17‌
2019
11
.30‌
0
.33‌
1
.06‌
1
.39‌
(
0
.29‌
)
(
0
.48‌
)
(
0
.77‌
)
11
.92‌
2018
12
.11‌
0
.31‌
(
0
.66‌
)
(
0
.35‌
)
(
0
.33‌
)
(
0
.13‌
)
(
0
.46‌
)
11
.30‌
2017
11
.40‌
0
.30‌
0
.69‌
0
.99‌
(
0
.28‌
)
–‌
(
0
.28‌
)
12
.11‌
2016
11
.15‌
0
.26‌
0
.27‌
0
.53‌
(
0
.28‌
)
–‌
(
0
.28‌
)
11
.40‌
2015
11
.51‌
0
.25‌
(
0
.35‌
)
(
0
.10‌
)
(
0
.26‌
)
–‌
(
0
.26‌
)
11
.15‌
REAL
ESTATE
SECURITIES
ACCOUNT
Class
1
shares
2020(c)
21
.50‌
0
.17‌
(
3
.14‌
)
(
2
.97‌
)
–‌
–‌
–‌
18
.53‌
2019
17
.86‌
0
.34‌
5
.18‌
5
.52‌
(
0
.40‌
)
(
1
.48‌
)
(
1
.88‌
)
21
.50‌
2018
20
.62‌
0
.37‌
(
1
.09‌
)
(
0
.72‌
)
(
0
.37‌
)
(
1
.67‌
)
(
2
.04‌
)
17
.86‌
2017
21
.30‌
0
.25‌
1
.62‌
1
.87‌
(
0
.39‌
)
(
2
.16‌
)
(
2
.55‌
)
20
.62‌
2016
22
.20‌
0
.31‌
1
.09‌
1
.40‌
(
0
.32‌
)
(
1
.98‌
)
(
2
.30‌
)
21
.30‌
2015
22
.33‌
0
.34‌
0
.57‌
0
.91‌
(
0
.34‌
)
(
0
.70‌
)
(
1
.04‌
)
22
.20‌
Class
2
shares
2020(c)
21
.56‌
0
.15‌
(
3
.15‌
)
(
3
.00‌
)
–‌
–‌
–‌
18
.56‌
2019
17
.92‌
0
.30‌
5
.18‌
5
.48‌
(
0
.36‌
)
(
1
.48‌
)
(
1
.84‌
)
21
.56‌
2018
20
.70‌
0
.34‌
(
1
.12‌
)
(
0
.78‌
)
(
0
.33‌
)
(
1
.67‌
)
(
2
.00‌
)
17
.92‌
2017
21
.36‌
0
.19‌
1
.64‌
1
.83‌
(
0
.33‌
)
(
2
.16‌
)
(
2
.49‌
)
20
.70‌
2016
22
.29‌
0
.28‌
1
.06‌
1
.34‌
(
0
.29‌
)
(
1
.98‌
)
(
2
.27‌
)
21
.36‌
2015
22
.45‌
0
.34‌
0
.53‌
0
.87‌
(
0
.33‌
)
(
0
.70‌
)
(
1
.03‌
)
22
.29‌
See
accompanying
notes.
203
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
6
.06‌
)
%
(d)
$
8,648‌
0
.07‌
%
(e)
,(f)
,(g)
0
.18‌
%
(e)
50
.0‌
%
(e)
27
.24‌
8,131‌
0
.10‌
(f)
,(g)
2
.15‌
38
.6‌
(
9
.25‌
)
4,649‌
0
.10‌
(f)
,(g)
1
.71‌
84
.9‌
22
.74‌
5,712‌
0
.10‌
(f)
,(g)
2
.98‌
33
.1‌
5
.52‌
2,644‌
0
.10‌
(f)
,(g)
1
.55‌
43
.1‌
(
0
.75‌
)
2,097‌
0
.13‌
(f)
,(g)
1
.65‌
30
.3‌
2
.10‌
(d)
26,943‌
0
.03‌
(e)
,(g)
1
.63‌
(e)
64
.0‌
(e)
12
.46‌
26,279‌
0
.06‌
(g)
2
.79‌
69
.0‌
(
3
.00‌
)
20,664‌
0
.03‌
(g)
2
.61‌
31
.2‌
8
.76‌
24,630‌
0
.02‌
(g)
2
.56‌
20
.0‌
4
.77‌
24,741‌
0
.03‌
(g)
2
.29‌
28
.5‌
(
0
.95‌
)
24,452‌
0
.05‌
(g)
2
.21‌
24
.4‌
(
13
.81‌
)
(d)
125,019‌
0
.83‌
(e)
1
.75‌
(e)
44
.2‌
(e)
31
.26‌
155,569‌
0
.88‌
(f)
1
.62‌
19
.3‌
(
4
.21‌
)
133,429‌
0
.89‌
1
.89‌
17
.3‌
9
.19‌
154,615‌
0
.89‌
1
.19‌
19
.6‌
5
.85‌
158,760‌
0
.89‌
1
.38‌
31
.3‌
4
.21‌
159,292‌
0
.89‌
1
.54‌
22
.8‌
(
13
.91‌
)
(d)
6,090‌
1
.08‌
(e)
1
.58‌
(e)
44
.2‌
(e)
30
.94‌
6,361‌
1
.13‌
(f)
1
.43‌
19
.3‌
(
4
.47‌
)
3,493‌
1
.14‌
1
.73‌
17
.3‌
8
.94‌
2,830‌
1
.14‌
0
.89‌
19
.6‌
5
.53‌
4,215‌
1
.14‌
1
.26‌
31
.3‌
4
.00‌
1,994‌
1
.14‌
1
.56‌
22
.8‌
(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,
2020.
(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.
See
accompanying
notes.
204
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
BALANCED
PORTFOLIO
Class
1
shares
2020(c)
$
15
.67‌
$
0
.05‌
(
$
0
.70‌
)
(
$
0
.65‌
)
$
–‌
$
–‌
$
–‌
$
15
.02‌
2019
13
.90‌
0
.31‌
2
.43‌
2
.74‌
(
0
.40‌
)
(
0
.57‌
)
(
0
.97‌
)
15
.67‌
2018
15
.89‌
0
.36‌
(
1
.07‌
)
(
0
.71‌
)
(
0
.50‌
)
(
0
.78‌
)
(
1
.28‌
)
13
.90‌
2017
14
.44‌
0
.45‌
1
.71‌
2
.16‌
(
0
.34‌
)
(
0
.37‌
)
(
0
.71‌
)
15
.89‌
2016
14
.69‌
0
.30‌
0
.70‌
1
.00‌
(
0
.32‌
)
(
0
.93‌
)
(
1
.25‌
)
14
.44‌
2015
16
.51‌
0
.30‌
(
0
.38‌
)
(
0
.08‌
)
(
0
.49‌
)
(
1
.25‌
)
(
1
.74‌
)
14
.69‌
Class
2
shares
2020(c)
15
.48‌
0
.04‌
(
0
.71‌
)
(
0
.67‌
)
–‌
–‌
–‌
14
.81‌
2019
13
.74‌
0
.28‌
2
.39‌
2
.67‌
(
0
.36‌
)
(
0
.57‌
)
(
0
.93‌
)
15
.48‌
2018
15
.72‌
0
.32‌
(
1
.06‌
)
(
0
.74‌
)
(
0
.46‌
)
(
0
.78‌
)
(
1
.24‌
)
13
.74‌
2017
14
.30‌
0
.42‌
1
.67‌
2
.09‌
(
0
.30‌
)
(
0
.37‌
)
(
0
.67‌
)
15
.72‌
2016
14
.55‌
0
.27‌
0
.69‌
0
.96‌
(
0
.28‌
)
(
0
.93‌
)
(
1
.21‌
)
14
.30‌
2015
16
.37‌
0
.26‌
(
0
.38‌
)
(
0
.12‌
)
(
0
.45‌
)
(
1
.25‌
)
(
1
.70‌
)
14
.55‌
SAM
CONSERVATIVE
BALANCED
PORTFOLIO
Class
1
shares
2020(c)
12
.19‌
0
.07‌
(
0
.35‌
)
(
0
.28‌
)
–‌
–‌
–‌
11
.91‌
2019
11
.05‌
0
.28‌
1
.45‌
1
.73‌
(
0
.35‌
)
(
0
.24‌
)
(
0
.59‌
)
12
.19‌
2018
12
.33‌
0
.34‌
(
0
.73‌
)
(
0
.39‌
)
(
0
.42‌
)
(
0
.47‌
)
(
0
.89‌
)
11
.05‌
2017
11
.50‌
0
.38‌
0
.92‌
1
.30‌
(
0
.34‌
)
(
0
.13‌
)
(
0
.47‌
)
12
.33‌
2016
11
.52‌
0
.31‌
0
.42‌
0
.73‌
(
0
.30‌
)
(
0
.45‌
)
(
0
.75‌
)
11
.50‌
2015
12
.60‌
0
.29‌
(
0
.36‌
)
(
0
.07‌
)
(
0
.41‌
)
(
0
.60‌
)
(
1
.01‌
)
11
.52‌
Class
2
shares
2020(c)
12
.03‌
0
.06‌
(
0
.36‌
)
(
0
.30‌
)
–‌
–‌
–‌
11
.73‌
2019
10
.91‌
0
.25‌
1
.43‌
1
.68‌
(
0
.32‌
)
(
0
.24‌
)
(
0
.56‌
)
12
.03‌
2018
12
.19‌
0
.31‌
(
0
.73‌
)
(
0
.42‌
)
(
0
.39‌
)
(
0
.47‌
)
(
0
.86‌
)
10
.91‌
2017
11
.38‌
0
.36‌
0
.89‌
1
.25‌
(
0
.31‌
)
(
0
.13‌
)
(
0
.44‌
)
12
.19‌
2016
11
.41‌
0
.27‌
0
.42‌
0
.69‌
(
0
.27‌
)
(
0
.45‌
)
(
0
.72‌
)
11
.38‌
2015
12
.48‌
0
.27‌
(
0
.36‌
)
(
0
.09‌
)
(
0
.38‌
)
(
0
.60‌
)
(
0
.98‌
)
11
.41‌
SAM
CONSERVATIVE
GROWTH
PORTFOLIO
Class
1
shares
2020(c)
19
.94‌
0
.03‌
(
1
.23‌
)
(
1
.20‌
)
–‌
–‌
–‌
18
.74‌
2019
17
.16‌
0
.36‌
3
.68‌
4
.04‌
(
0
.36‌
)
(
0
.90‌
)
(
1
.26‌
)
19
.94‌
2018
19
.86‌
0
.35‌
(
1
.51‌
)
(
1
.16‌
)
(
0
.56‌
)
(
0
.98‌
)
(
1
.54‌
)
17
.16‌
2017
17
.22‌
0
.54‌
2
.82‌
3
.36‌
(
0
.30‌
)
(
0
.42‌
)
(
0
.72‌
)
19
.86‌
2016
17
.22‌
0
.30‌
0
.90‌
1
.20‌
(
0
.26‌
)
(
0
.94‌
)
(
1
.20‌
)
17
.22‌
2015
19
.02‌
0
.26‌
(
0
.41‌
)
(
0
.15‌
)
(
0
.43‌
)
(
1
.22‌
)
(
1
.65‌
)
17
.22‌
Class
2
shares
2020(c)
19
.63‌
0
.01‌
(
1
.21‌
)
(
1
.20‌
)
–‌
–‌
–‌
18
.43‌
2019
16
.92‌
0
.32‌
3
.61‌
3
.93‌
(
0
.32‌
)
(
0
.90‌
)
(
1
.22‌
)
19
.63‌
2018
19
.60‌
0
.31‌
(
1
.50‌
)
(
1
.19‌
)
(
0
.51‌
)
(
0
.98‌
)
(
1
.49‌
)
16
.92‌
2017
17
.01‌
0
.49‌
2
.78‌
3
.27‌
(
0
.26‌
)
(
0
.42‌
)
(
0
.68‌
)
19
.60‌
2016
17
.02‌
0
.25‌
0
.89‌
1
.14‌
(
0
.21‌
)
(
0
.94‌
)
(
1
.15‌
)
17
.01‌
2015
18
.82‌
0
.21‌
(
0
.40‌
)
(
0
.19‌
)
(
0
.39‌
)
(
1
.22‌
)
(
1
.61‌
)
17
.02‌
See
accompanying
notes.
205
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
4
.15‌
)
%
(d)
$
516,836‌
0
.24‌
%
(e)
,(f)
0
.74‌
%
(e)
1
.8‌
%
(e)
20
.01‌
574,960‌
0
.24‌
(f)
,(g)
2
.06‌
23
.0‌
(
5
.04‌
)
561,162‌
0
.23‌
(f)
,(g)
2
.29‌
18
.2‌
15
.21‌
678,409‌
0
.23‌
(f)
2
.92‌
27
.4‌
6
.82‌
672,562‌
0
.23‌
(f)
2
.07‌
16
.5‌
(
0
.81‌
)
732,937‌
0
.23‌
(f)
1
.88‌
26
.1‌
(
4
.33‌
)
(d)
116,823‌
0
.49‌
(e)
,(f)
0
.49‌
(e)
1
.8‌
(e)
19
.74‌
123,870‌
0
.49‌
(f)
,(g)
1
.89‌
23
.0‌
(
5
.25‌
)
104,051‌
0
.48‌
(f)
,(g)
2
.10‌
18
.2‌
14
.88‌
110,129‌
0
.48‌
(f)
2
.77‌
27
.4‌
6
.62‌
97,047‌
0
.48‌
(f)
1
.88‌
16
.5‌
(
1
.08‌
)
96,511‌
0
.48‌
(f)
1
.66‌
26
.1‌
(
2
.30‌
)
(d)
150,889‌
0
.24‌
(e)
,(f)
1
.21‌
(e)
7
.6‌
(e)
15
.88‌
164,095‌
0
.24‌
(f)
,(g)
2
.32‌
30
.8‌
(
3
.49‌
)
154,297‌
0
.22‌
(f)
,(g)
2
.79‌
19
.5‌
11
.46‌
178,523‌
0
.23‌
(f)
3
.16‌
26
.3‌
6
.37‌
183,830‌
0
.23‌
(f)
2
.64‌
19
.8‌
(
0
.78‌
)
193,585‌
0
.23‌
(f)
2
.38‌
28
.2‌
(
2
.49‌
)
(d)
25,933‌
0
.49‌
(e)
,(f)
0
.97‌
(e)
7
.6‌
(e)
15
.66‌
25,380‌
0
.49‌
(f)
,(g)
2
.15‌
30
.8‌
(
3
.75‌
)
20,449‌
0
.47‌
(f)
,(g)
2
.59‌
19
.5‌
11
.14‌
20,541‌
0
.48‌
(f)
3
.06‌
26
.3‌
6
.08‌
17,477‌
0
.48‌
(f)
2
.39‌
19
.8‌
(
0
.93‌
)
17,774‌
0
.48‌
(f)
2
.19‌
28
.2‌
(
6
.02‌
)
(d)
195,683‌
0
.24‌
(e)
,(f)
0
.33‌
(e)
4
.2‌
(e)
24
.06‌
213,346‌
0
.24‌
(f)
,(g)
1
.89‌
16
.2‌
(
6
.62‌
)
189,654‌
0
.23‌
(f)
,(g)
1
.81‌
27
.0‌
19
.78‌
220,054‌
0
.23‌
(f)
2
.88‌
35
.1‌
7
.00‌
194,284‌
0
.23‌
(f)
1
.73‌
25
.5‌
(
1
.09‌
)
193,966‌
0
.23‌
(f)
1
.40‌
29
.1‌
(
6
.11‌
)
(d)
132,774‌
0
.49‌
(e)
,(f)
0
.08‌
(e)
4
.2‌
(e)
23
.68‌
143,501‌
0
.49‌
(f)
,(g)
1
.68‌
16
.2‌
(
6
.82‌
)
118,307‌
0
.48‌
(f)
,(g)
1
.60‌
27
.0‌
19
.46‌
127,079‌
0
.48‌
(f)
2
.68‌
35
.1‌
6
.76‌
108,247‌
0
.48‌
(f)
1
.49‌
25
.5‌
(
1
.34‌
)
103,771‌
0
.48‌
(f)
1
.17‌
29
.1‌
(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,
2020.
(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.
See
accompanying
notes.
206
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
FLEXIBLE
INCOME
PORTFOLIO
Class
1
shares
2020(c)
$
12.58‌
$
0.10‌
(
$
0.29‌)
(
$
0.19‌)
$
–‌
$
–‌
$
–‌
$
12.39‌
2019
11.86‌
0.33‌
1.22‌
1.55‌
(
0.46‌)
(
0.37‌)
(
0.83‌)
12.58‌
2018
12.95‌
0.40‌
(
0.63‌)
(
0.23‌)
(
0.53‌)
(
0.33‌)
(
0
.86‌)
11.86‌
2017
12.45‌
0.47‌
0.56‌
1.03‌
(
0.44‌)
(
0.09‌)
(
0.53‌)
12.95‌
2016
12.27‌
0.42‌
0.44‌
0.86‌
(
0.43‌)
(
0.25‌)
(
0.68‌)
12.45‌
2015
13.22‌
0.40‌
(
0.56‌)
(
0.16‌)
(
0.47‌)
(
0.32‌)
(
0.79‌)
12.27‌
Class
2
shares
2020(c)
12.44‌
0.09‌
(
0.29‌)
(
0.20‌)
–‌
–‌
–‌
12.24‌
2019
11.74‌
0.31‌
1.19‌
1.50‌
(
0.43‌)
(
0.37‌)
(
0.80‌)
12.44‌
2018
12
.83‌
0.38‌
(
0.63‌)
(
0.25‌)
(
0.51‌)
(
0.33‌)
(
0.84‌)
11.74‌
2017
12.34‌
0.45‌
0.54‌
0.99‌
(
0.41‌)
(
0.09‌)
(
0.50‌)
12.83‌
2016
12.17‌
0.38‌
0.44‌
0.82‌
(
0.40‌)
(
0.25‌)
(
0.65‌)
12.34‌
2015
13.12‌
0.37‌
(
0.56‌)
(
0.19‌)
(
0.44‌)
(
0.32‌)
(
0.76‌)
12.17‌
SAM
STRATEGIC
GROWTH
PORTFOLIO
Class
1
shares
2020(c)
21.85‌
(
0.01‌)
(
1.54‌)
(
1.55‌)
–‌
–‌
–‌
20.30‌
2019
18.36‌
0.39‌
4.54‌
4.93‌
(
0
.33‌)
(
1.11‌)
(
1.44‌)
21.85‌
2018
21.72‌
0.33‌
(
2.01‌)
(
1.68‌)
(
0.52‌)
(
1.16‌)
(
1.68‌)
18.36‌
2017
18.54‌
0.51‌
3.54‌
4.05‌
(
0.30‌)
(
0.57‌)
(
0.87‌)
21.72‌
2016
18.70‌
0.30‌
0.85‌
1.15‌
(
0.28‌)
(
1.03‌)
(
1.31‌)
18.54‌
2015
21
.00‌
0.29‌
(
0.56‌)
(
0.27‌)
(
0.47‌)
(
1.56‌)
(
2.03‌)
18.70‌
Class
2
shares
2020(c)
21.53‌
(
0.03‌)
(
1.52‌)
(
1.55‌)
–‌
–‌
–‌
19.98‌
2019
18.11‌
0.34‌
4.47‌
4.81‌
(
0.28‌)
(
1.11‌)
(
1.39‌)
21.53‌
2018
21.46‌
0.28‌
(
2.00‌)
(
1.72‌)
(
0.47‌)
(
1.16‌)
(
1.63‌)
18
.11‌
2017
18.33‌
0.47‌
3.48‌
3.95‌
(
0.25‌)
(
0.57‌)
(
0.82‌)
21.46‌
2016
18.50‌
0.26‌
0.83‌
1.09‌
(
0.23‌)
(
1.03‌)
(
1.26‌)
18.33‌
2015
20.80‌
0.24‌
(
0.55‌)
(
0.31‌)
(
0.43‌)
(
1.56‌)
(
1.99‌)
18.50‌
SHORT-TERM
INCOME
ACCOUNT
Class
1
shares
2020(c)
2.57‌
0.03‌
0.03‌
0.06‌
–‌
–‌
–‌
2.63‌
2019
2.52‌
0.06‌
0.06‌
0.12‌
(
0.07‌)
–‌
(
0.07‌)
2.57‌
2018
2.55‌
0.06‌
(
0.03‌)
0.03‌
(
0.06‌)
–‌
(
0.06‌)
2.52‌
2017
2.54‌
0.05‌
0.01‌
0.06‌
(
0.05‌)
–‌
(
0.05‌)
2.55‌
2016
2.54‌
0.05‌
–‌
0.05‌
(
0.05‌)
–‌
(
0.05‌)
2.54‌
2015
2.59‌
0.04‌
(
0.02‌)
0.02‌
(
0.07‌)
–‌
(
0.07‌)
2.54‌
SMALLCAP
ACCOUNT
Class
1
shares
2020(c)
15.33‌
0.04‌
(
1.67‌)
(
1.63‌)
–‌
–‌
–‌
13.70‌
2019
14.30‌
0.08‌
3.67‌
3.75‌
(
0.06‌)
(
2.66‌)
(
2.72‌)
15.33‌
2018
17.10‌
0.03‌
(
1.62‌)
(
1.59‌)
(
0.06‌)
(
1.15‌)
(
1.21‌)
14.30‌
2017
15.21‌
0.06‌
1.89‌
1.95‌
(
0.06‌)
–‌
(
0.06‌)
17.10‌
2016
13.55‌
0.15‌
2.15‌
2.30‌
(
0.04‌)
(
0.60‌)
(
0.64‌)
15.21‌
2015
13.99‌
0.05‌
(
0.03‌)
0.02‌
(
0.01‌)
(
0.45‌)
(
0
.46‌)
13.55‌
Class
2
shares
2020(c)
15.26‌
0.02‌
(
1.65‌)
(
1.63‌)
–‌
–‌
–‌
13.63‌
2019
14.24‌
0.04‌
3.66‌
3
.70‌
(
0.02‌)
(
2.66‌)
(
2.68‌)
15.26‌
2018
17.04‌
(
0.01‌)
(
1.62‌)
(
1.63‌)
(
0.02‌)
(
1.15‌)
(
1.17‌)
14.24‌
2017
15.17‌
0.02‌
1.87‌
1.89‌
(
0.02‌)
–‌
(
0.02‌)
17.04‌
2016
13.52‌
0.11‌
2.15‌
2.26‌
(
0.01‌)
(
0.60‌)
(
0.61‌)
15.17‌
2015(i)
14.49‌
0
.02‌
(
0.53‌)
(
0.51‌)
(
0.01‌)
(
0.45‌)
(
0.46‌)
13.52‌
See
accompanying
notes.
207
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(1.51‌)
%
(d)
$
142,266‌
0.24‌
%
(e),(f)
1.71‌
%
(e)
8.4‌
%
(e)
13.25‌
157,922‌
0.24‌
(f)
2.65‌
37.4‌
(1.97‌)
157,019‌
0.23‌
(f)
3.19‌
19.9‌
8.41‌
194,742‌
0.23‌
(f)
3.69‌
29.3‌
7.04‌
196,393‌
0.23‌
(f)
3.32‌
17.1‌
(1.31‌)
200,828‌
0.23‌
(f)
3.05‌
25.2‌
(1.61‌)
(d)
31,536‌
0.49‌
(e),(f)
1.46‌
(e)
8.4‌
(e)
12.97‌
30,663‌
0.49‌
(f)
2.46‌
37.4‌
(2.20‌)
25,656‌
0.48‌
(f)
3.07‌
19.9‌
8.13‌
23,003‌
0.48‌
(f)
3.57‌
29.3‌
6.73‌
20,085‌
0.48‌
(f)
3.06‌
17.1‌
(1.55‌)
21,108‌
0.48‌
(f)
2.85‌
25.2‌
(7.09‌)
(d)
154,388‌
0.24‌
(e),(f)
(0.07‌)
(e)
5.9‌
(e)
27.44‌
169,489‌
0.24‌
(f),(g)
1.89‌
20.3‌
(8.60‌)
140,247‌
0.23‌
(f),(g)
1.56‌
37.8‌
22.22‌
163,861‌
0.23‌
(f)
2.50‌
37.7‌
6.15‌
145,083‌
0.23‌
(f)
1.61‌
23.4‌
(1.62‌)
142,227‌
0.23‌
(f)
1.45‌
37.9‌
(7.20‌)
(d)
134,546‌
0.49‌
(e),(f)
(0.32‌)
(e)
5.9‌
(e)
27.13‌
145,924‌
0.49‌
(f),(g)
1.67‌
20.3‌
(8.87‌)
114,902‌
0.48‌
(f),(g)
1.34‌
37.8‌
21.95‌
126,632‌
0.48‌
(f)
2.33‌
37.7‌
5.90‌
103,870‌
0.48‌
(f)
1.41‌
23.4‌
(1.87‌)
95,775‌
0.48‌
(f)
1.19‌
37.9‌
2.33‌
(d)
139,208‌
0.51‌
(e),(g)
1.95‌
(e)
76.5‌
(e)
4.70‌
130,852‌
0.51‌
(g)
2.31‌
54.2‌
1.02‌
149,075‌
0.50‌
(g)
2.19‌
49.9‌
2.39‌
158,446‌
0.50‌
(g)
2.01‌
67.3‌
2.14‌
170,538‌
0.50‌
(g)
1.91‌
48.6‌
0.71‌
160,833‌
0.49‌
(g)
1.63‌
57.0‌
(10.63‌)
(d)
157,935‌
0.84‌
(e)
0.54‌
(e)
34.4‌
(e)
27.40‌
184,434‌
0.84‌
0.53‌
34.7‌
(10.89‌)
163,243‌
0.83‌
0.20‌
45.0‌
12.87‌
208,669‌
0.83‌
0.37‌
64.1‌
17.39‌
209,911‌
0.83‌
1.08‌
57.1‌
(0.10‌)
205,344‌
0.83‌
0.33‌
63.3‌
(10.75)
(d),(h)
6,075‌
1.09‌
(e)
0.30‌
(e)
34.4‌
(e)
27.12‌
6,829‌
1.09‌
0.28‌
34.7‌
(11.17‌)
(h)
4,874‌
1.08‌
(0.05‌)
45.0‌
12.57‌
(h)
5,371‌
1.08‌
0.12‌
64.1‌
17.15‌
4,938‌
1.08‌
0.80‌
57.1‌
(3.76‌)
(d)
4,523‌
1.08‌
(e)
0.13‌
(e)
63.3‌
(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,
2020.
(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)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
(i)
Period
from
February
17,
2015
date
operations
commenced,
through
December
31,
2015.
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
208
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.
In
addition
to
the
expenses
the
Funds
bear
directly,
each
of
the
Accounts
may
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
period
and
held
for
the
entire
period
(
January
1,
2020
to
June
30,
2020
),
unless
otherwise
noted.
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
cost
of
owning
different
funds.
Beginning
Account
Value
January
1,
2020
Ending
Account
Value
June
30,
2020
Expenses
Paid
During
Period
January
1,
2020 
to
June
30,
2020
(a)
Annualized
Expense
Ratio
Bond
Market
Index
Account
Class
1
Actual
$
1,000.00
$
1,060.63
$
0.72
0.14
%
Hypothetical
1,000.00
1,024.17
0.70
0.14
Core
Plus
Bond
Account
Class
1
Actual
1,000.00
1,060.00
2.41
0.47
Hypothetical
1,000.00
1,022.53
2.36
0.47
Diversified
Balanced
Account
Class
1
Actual
1,000.00
1,008.47
0.25
0.05
Hypothetical
1,000.00
1,024.61
0.25
0.05
Diversified
Balanced
Account
Class
2
Actual
1,000.00
1,007.25
1.50
0.30
Hypothetical
1,000.00
1,023.37
1.51
0.30
Diversified
Balanced
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,006.97
1.55
0.31
Hypothetical
1,000.00
1,023.32
1.56
0.31
Diversified
Balanced
Volatility
Control
Account
Class
2
Actual
1,000.00
994.88
1.88
0.38
Hypothetical
1,000.00
1,022.97
1.91
0.38
Diversified
Growth
Account
Class
2
Actual
1,000.00
987.69
1.48
0.30
Hypothetical
1,000.00
1,023.37
1.51
0.30
Diversified
Growth
Managed
Volatility
Account
Class
2
Actual
1,000.00
988.17
1.48
0.30
Hypothetical
1,000.00
1,023.37
1.51
0.30
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
209
Beginning
Account
Value
January
1,
2020
Ending
Account
Value
June
30,
2020
Expenses
Paid
During
Period
January
1,
2020 
to
June
30,
2020
(a)
Annualized
Expense
Ratio
Diversified
Growth
Volatility
Control
Account
Class
2
Actual
$
1,000.00
$
974.17
$
1.82
0.37
%
Hypothetical
1,000.00
1,023.02
1.86
0.37
Diversified
Income
Account
Class
2
Actual
1,000.00
1,025.33
1.56
0.31
Hypothetical
1,000.00
1,023.32
1.56
0.31
Diversified
International
Account
Class
1
Actual
1,000.00
908.98
4.37
0.92
Hypothetical
1,000.00
1,020.29
4.62
0.92
Equity
Income
Account
Class
1
Actual
1,000.00
853.14
2.21
0.48
Hypothetical
1,000.00
1,022.48
2.41
0.48
Equity
Income
Account
Class
2
Actual
1,000.00
852.13
3.36
0.73
Hypothetical
1,000.00
1,021.23
3.67
0.73
Government
&
High
Quality
Bond
Account
Class
1
Actual
1,000.00
1,024.46
2.57
0.51
Hypothetical
1,000.00
1,022.33
2.56
0.51
International
Emerging
Markets
Account
Class
1
Actual
1,000.00
903.68
5.68
1.20
Hypothetical
1,000.00
1,018.90
6.02
1.20
LargeCap
Growth
Account
I
Class
1
Actual
1,000.00
1,105.47
3.61
0.69
Hypothetical
1,000.00
1,021.43
3.47
0.69
LargeCap
S&P
500
Index
Account
Class
1
Actual
1,000.00
967.81
1.22
0.25
Hypothetical
1,000.00
1,023.62
1.26
0.25
LargeCap
S&P
500
Index
Account
Class
2
Actual
1,000.00
966.45
2.44
0.50
Hypothetical
1,000.00
1,022.38
2.51
0.50
LargeCap
S&P
500
Managed
Volatility
Index
Account
Class
1
Actual
1,000.00
970.78
2.25
0.46
Hypothetical
1,000.00
1,022.58
2.31
0.46
MidCap
Account
Class
1
Actual
1,000.00
951.12
2.67
0.55
Hypothetical
1,000.00
1,022.13
2.77
0.55
MidCap
Account
Class
2
Actual
1,000.00
950.02
3.88
0.80
Hypothetical
1,000.00
1,020.89
4.02
0.80
Principal
Capital
Appreciation
Account
Class
1
Actual
1,000.00
965.49
3.13
0.64
Hypothetical
1,000.00
1,021.68
3.22
0.64
Principal
Capital
Appreciation
Account
Class
2
Actual
1,000.00
964.38
4.35
0.89
Hypothetical
1,000.00
1,020.44
4.47
0.89
Principal
LifeTime
2010
Account
Class
1
Actual
1,000.00
1,016.47
0.15
0.03
Hypothetical
1,000.00
1,024.71
0.15
0.03
Principal
LifeTime
2020
Account
Class
1
Actual
1,000.00
994.96
0.05
0.01
Hypothetical
1,000.00
1,024.81
0.05
0.01
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
210
Beginning
Account
Value
January
1,
2020
Ending
Account
Value
June
30,
2020
Expenses
Paid
During
Period
January
1,
2020 
to
June
30,
2020
(a)
Annualized
Expense
Ratio
Principal
LifeTime
2030
Account
Class
1
Actual
$
1,000.00
$
975.61
$
0.05
0.01
%
Hypothetical
1,000.00
1,024.81
0.05
0.01
Principal
LifeTime
2040
Account
Class
1
Actual
1,000.00
959.31
0.05
0.01
Hypothetical
1,000.00
1,024.81
0.05
0.01
Principal
LifeTime
2050
Account
Class
1
Actual
1,000.00
948.04
0.15
0.03
Hypothetical
1,000.00
1,024.71
0.15
0.03
Principal
LifeTime
2060
Account
Class
1
Actual
1,000.00
939.37
0.48
0.10
Hypothetical
1,000.00
1,024.37
0.50
0.10
Principal
LifeTime
Strategic
Income
Account
Class
1
Actual
1,000.00
1,020.97
0.15
0.03
Hypothetical
1,000.00
1,024.71
0.15
0.03
Real
Estate
Securities
Account
Class
1
Actual
1,000.00
861.86
3.84
0.83
Hypothetical
1,000.00
1,020.74
4.17
0.83
Real
Estate
Securities
Account
Class
2
Actual
1,000.00
860.85
5.00
1.08
Hypothetical
1,000.00
1,019.49
5.42
1.08
SAM
Balanced
Portfolio
Class
1
Actual
1,000.00
958.52
1.17
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Balanced
Portfolio
Class
2
Actual
1,000.00
956.72
2.38
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Conservative
Balanced
Portfolio
Class
1
Actual
1,000.00
977.03
1.18
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Conservative
Balanced
Portfolio
Class
2
Actual
1,000.00
975.06
2.41
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Conservative
Growth
Portfolio
Class
1
Actual
1,000.00
939.82
1.16
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Conservative
Growth
Portfolio
Class
2
Actual
1,000.00
938.87
2.36
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Flexible
Income
Portfolio
Class
1
Actual
1,000.00
984.90
1.18
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Flexible
Income
Portfolio
Class
2
Actual
1,000.00
983.92
2.42
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Strategic
Growth
Portfolio
Class
1
Actual
1,000.00
929.06
1.15
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Strategic
Growth
Portfolio
Class
2
Actual
1,000.00
928.01
2.35
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
Short-Term
Income
Account
Class
1
Actual
1,000.00
1,023.35
2.57
0.51
Hypothetical
1,000.00
1,022.33
2.56
0.51
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
211
Beginning
Account
Value
January
1,
2020
Ending
Account
Value
June
30,
2020
Expenses
Paid
During
Period
January
1,
2020 
to
June
30,
2020
(a)
Annualized
Expense
Ratio
SmallCap
Account
Class
1
Actual
$
1,000.00
$
893.67
$
3.95
0.84
%
Hypothetical
1,000.00
1,020.69
4.22
0.84
SmallCap
Account
Class
2
Actual
1,000.00
892.53
5.13
1.09
Hypothetical
1,000.00
1,019.44
5.47
1.09
(a)
Expenses
are
equal
to
a
fund's
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
212
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.,
Principal
Exchange-Traded
Funds,
and
Principal
Diversified
Select
Real
Asset
Fund
which
are
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
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
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Elizabeth
Ballantine
Director
since
2004
Member,
Nominating
and
Governance
Committee
1948
Principal,
EBA
Associates
127
Durango
Herald,
Inc.;
McClatchy
Newspapers,
Inc.
Leroy
T.
Barnes,
Jr.
Director
since
2012
Member,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1951
Retired.
127
McClatchy
Newspapers,
Inc.;
Frontier
Communications,
Inc.;
formerly,
Herbalife
Ltd.
Craig
Damos
Lead
Independent
Director
since
2020
Director
since
2008
Member,
Nominating
and
Governance
Committee
Member,15(c)
Committee
Member,
Executive
Committee
1954
President,
C.P.
Damos
Consulting
LLC
127
None
Mark
A.
Grimmett
Director
since
2004
Member,
Audit
Committee
Member,
15(c)
Committee
Member,
Executive
Committee
1960
Formerly,
Executive
Vice
President
and
CFO,
Merle
Norman
Cosmetics,
Inc.
127
None
Fritz
S.
Hirsch
Director
since
2005
Member,
Nominating
and
Governance
Committee
Member,
Operations
Committee
Member,
15(c)
Committee
1951
Formerly,
CEO,
MAM
USA
127
MAM
USA
Tao
Huang
Director
since
2012
Member,
Operations
Committee
Member,
15(c)
Committee
1962
Retired.
127
Armstrong
World
Industries,
Inc.
and
Equity
Lifestyle
Properties,
Inc.
Karen
(“Karrie”)
McMillan
Director
since
2014
Member,
Operations
Committee
1961
Managing
Director,
Patomak
Global
Partners,
LLC
127
None
Elizabeth
A.
Nickels
Director
since
2015
Member,
Audit
Committee
1962
Retired.
127
SpartanNash;
formerly:
Charlotte
Russe;
Follet
Corporation;
PetSmart;
Spectrum
Health
Systems
Mary
M.
(“Meg”)
VanDeWeghe
Director
since
2018
Member,
Operations
Committee
1959
CEO
and
President,
Forte
Consulting,
Inc.
127
Denbury
Resources
Inc.
and
Helmerich
&
Payne;
Formerly:
Brown
Advisory;
B/E
Aerospace;
WP
Carey;
Nalco
(and
its
successor
Ecolab)
213
The
following
directors
are
considered
to
be
“interested
persons”
as
defined
in
the
1940
Act,
because
of
an
affiliation
with
the
Manager
and
Principal
Life.
Correspondence
intended
for
each
Director
who
is
other
than
an
Interested
Director
may
be
sent
to
655
9th
Street,
Des
Moines,
IA
50392.
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Timothy
M.
Dunbar
Chair
and
Director
since
2019
Member,
Executive
Committee
1957
Director,
PGI
since
2018
President,
Principal
Global
Asset
Management,
PGI,
Principal
Life
Insurance
Company
(“PLIC”),
Principal
Financial
Services,
Inc.
(“PFSI”),
and
Principal
Financial
Group
(“PFG”)
since
2018
Chair/Executive
Vice
President,
RobustWealth,
Inc.
since
2018
Director,
Post
Advisory
Group,
LLC
(“Post”)
since
2018
Executive
Vice
President/Chief
Investment
Officer,
PLIC,
PFSI
and
PFG
(2014-2018)
127
None
Patrick
Halter
Director
since
2017
1959
Chief
Executive
Officer
and
President,
PGI
since
2018
Chief
Operating
Officer,
PGI
(2017-2018)
Chair,
PGI
since
2018
Director,
PGI
(2003-2018)
Director,
Finisterre
Capital
LLP
since
2018
Director,
Origin
Asset
Management
LLP
since
2018
Chair,
Post
since
2017
Chief
Executive
Officer,
Principal
Real
Estate
Investors,
LLC
(“PREI”)
since
2005
Chair,
PREI
since
2004
Chair,
Spectrum
Asset
Management,
Inc.
since
2017
Director,
CCIP,
LLC
since
2017
127
None
214
The
following
table
presents
officers
of
the
Funds.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Kamal
Bhatia
President,
Chief
Executive
Officer
1972
President,
PFG,
PFSI,
and
PLIC
since
2019
Principal
Executive
Officer,
OC
Private
Capital
(2017-2019)
Senior
Vice
President,
OppenheimerFunds
(2011-
2019)
Randy
D.
Bolin
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1961
Vice
President/Associate
General
Counsel,
PFSI
since
2013
Vice
President/Associate
General
Counsel,
PGI
since
2016
Assistant
General
Counsel,
PGI
(2007–2016)
Vice
President/Associate
General
Counsel,
PLIC
since
2013
Tracy
W.
Bollin
Chief
Financial
Officer
Des
Moines,
IA
50392
1970
Managing
Director,
PGI
since
2016
Chief
Operating
Officer,
PMC
(2015-2017)
Chief
Financial
Officer,
PFA
(2010-2015)
Senior
Vice
President,
PFD
since
2015
Chief
Financial
Officer,
PFD
(2010-2016)
Senior
Vice
President,
PMC
(2015–2017)
Chief
Financial
Officer,
PMC
(2010-2015)
Director,
PMC
(2014–2017)
Chief
Financial
Officer,
PSI
(2010-2015)
President,
PSS
since
2015
Chief
Financial
Officer,
PSS
(2010-2015)
Gina
L.
Graham
Treasurer
Des
Moines,
IA
50392
1965
Vice
President/Treasurer,
PFA
since
2016
Vice
President/Treasurer,
PFD
since
2016
Vice
President/Treasurer,
PGI
since
2016
Vice
President/Treasurer,
PLIC
since
2016
Vice
President/Treasurer,
PMC
(2016-2017)
Vice
President/Treasurer,
PREI
since
2016
Vice
President/Treasurer,
PSI
since
2016
Vice
President/Treasurer,
PSS
since
2016
Laura
B.
Latham
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Counsel,
PGI
since
2018
Prior
thereto,
Attorney
in
Private
Practice
Diane
K.
Nelson
AML
Officer
Des
Moines,
IA
50392
1965
Chief
Compliance
Officer/AML
Officer,
PSS
since
2015
Compliance
Advisor,
PMC
(2013-2015)
Sara
L.
Reece
Vice
President
and
Controller
Des
Moines,
IA
50392
1975
Director
-
Accounting,
PLIC
since
2015
Assistant
Financial
Controller,
PLIC
prior
to
2015
Teri
R.
Root
Chief
Compliance
Officer
Des
Moines,
IA
50392
1979
Interim
Chief
Compliance
Officer
(2018)
Deputy
Chief
Compliance
Officer
(2015-2018)
Deputy
Chief
Compliance
Officer,
PGI
since
2017
Vice
President
and
Chief
Compliance
Officer,
PMC
(2015–2017)
Vice
President,
PSS
since
2015
Britney
L.
Schnathorst
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1981
Counsel,
PLIC
since
2013
Adam
U.
Shaikh
Assistant
Counsel
Des
Moines,
IA
50392
1972
Assistant
General
Counsel,
PGI
since
2018
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
since
2006
Counsel,
PMC
(2014-2017)
John
L.
Sullivan
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1970
Counsel,
PGI
since
2019
Prior
thereto,
Attorney
in
Private
Practice
215
The
15(c)
Committee’s
primary
purpose
is
to
assist
the
Board
in
performing
the
annual
review
of
the
Fund’s
advisory
and
sub-advisory
agreements
pursuant
to
Section
15(c)
of
the
1940
Act.
The
Committee
responsibilities
include
requesting
and
reviewing
materials.
The
Audit
Committee’s
primary
purpose
is
to
assist
the
Board
in
fulfilling
certain
of
its
responsibilities.
The
Audit
Committee
serves
as
an
independent
and
objective
party
to
monitor
the
Fund
Complex’s
accounting
policies,
financial
reporting
and
internal
control
system,
as
well
as
the
work
of
the
independent
registered
public
accountants.
The
Audit
Committee
assists
Board
oversight
of
1)
the
integrity
of
the
Fund
Complex’s
financial
statements;
2)
the
Fund
Complex’s
compliance
with
certain
legal
and
regulatory
requirements;
3)
the
independent
registered
public
accountants’
qualifications
and
independence;
and
4)
the
performance
of
the
Fund
Complex’s
independent
registered
public
accountants.
The
Audit
Committee
also
provides
an
open
avenue
of
communication
among
the
independent
registered
public
accountants,
the
Manager’s
internal
auditors,
Fund
Complex
management,
and
the
Board.
The
Executive
Committee’s
primary
purpose
is
to
exercise
certain
powers
of
the
Board
when
the
Board
is
not
in
session.
When
the
Board
is
not
in
session,
the
Committee
may
exercise
all
powers
of
the
Board
in
the
management
of
the
business
of
the
Fund
Complex
except
the
power
to
1)
authorize
dividends
or
distributions
on
stock;
2)
issue
stock,
except
as
permitted
by
law;
3)
recommend
to
the
stockholders
any
action
which
requires
stockholder
approval;
4)
amend
the
bylaws;
or
5)
approve
any
merger
or
share
exchange
which
does
not
require
stockholder
approval.
The
Nominating
and
Governance
Committee’s
primary
purpose
is
to
oversee
the
structure
and
efficiency
of
the
Board
and
the
committees
established
by
the
Board.
The
Committee
responsibilities
include
evaluating
Board
membership
and
functions,
committee
membership
and
functions,
insurance
coverage,
and
legal
matters.
The
nominating
functions
of
the
Committee
include
selecting
and
nominating
all
candidates
who
are
not
“interested
persons”
of
the
Fund
Complex
for
election
to
the
Board.
Generally,
the
Committee
requests
director
nominee
suggestions
from
the
committee
members
and
management.
In
addition,
the
Committee
will
consider
Director
candidates
recommended
by
shareholders
of
the
Fund
Complex.
Recommendations
should
be
submitted
in
writing
to
Principal
Funds,
Inc.
at
711
High
Street,
Des
Moines,
IA
50392.
When
evaluating
a
person
as
a
potential
nominee
to
serve
as
an
Independent
Director,
the
Committee
will
generally
consider,
among
other
factors:
age;
education;
relevant
business
experience;
geographical
factors;
whether
the
person
is
“independent”
and
otherwise
qualified
under
applicable
laws
and
regulations
to
serve
as
a
director;
and
whether
the
person
is
willing
to
serve,
and
willing
and
able
to
commit
the
time
necessary
for
attendance
at
meetings
and
the
performance
of
the
duties
of
an
independent
director.
The
Committee
also
meets
personally
with
the
nominees
and
conducts
a
reference
check.
The
final
decision
is
based
on
a
combination
of
factors,
including
the
strengths
and
the
experience
an
individual
may
bring
to
the
Board.
The
Committee
believes
the
Board
generally
benefits
from
diversity
of
background,
experience
and
views
among
its
members,
and
considers
these
factors
in
evaluating
the
composition
of
the
Board.
The
Board
does
not
use
regularly
the
services
of
any
professional
search
firms
to
identify
or
evaluate
or
assist
in
identifying
or
evaluating
potential
candidates
or
nominees.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Dan
L.
Westholm
Assistant
Treasurer
Des
Moines,
IA
50392
1966
Assistant
Vice
President/Treasurer,
PGI
since
2017
Assistant
Vice
President/Treasury,
PFA
since
2013
Assistant
Vice
President/Treasury,
PFD
since
2013
Assistant
Vice
President/Treasury,
PLIC
since
2014
Assistant
Vice
President/Treasury,
PMC
(2013-
2017)
Assistant
Vice
President/Treasury,
PSI
since
2013
Assistant
Vice
President/Treasury,
PSS
since
2013
Beth
C.
Wilson
Vice
President
and
Secretary
Des
Moines,
IA
50392
1956
Director
and
Secretary
–
Funds,
PLIC
Clint
L.
Woods
Counsel,
Vice
President,
and
Assistant
Secretary
Des
Moines,
IA
50392
1961
Of
Counsel
(2017-2018)
Vice
President
(2016-2017)
Counsel
(2015-2017)
Vice
President,
PLIC
since
2015
Associate
General
Counsel,
Governance
Officer,
and
Assistant
Corporate
Secretary,
PLIC
since
2013
Jared
Yepsen
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1981
Counsel,
PGI
since
2017
Counsel,
PLIC
since
2015
Senior
Attorney,
Transamerica
Life
Insurance
Company
(2013-2015)
216
The
Operations
Committee’s
primary
purpose
is
to
oversee
the
provision
of
administrative
and
distribution
services
to
the
Funds
Complex,
communications
with
the
Fund
Complex’s
shareholders,
and
review
and
oversight
of
the
Fund
Complex’s
operations.
Additional
information
about
the
Fund
is
available
in
the
Prospectus
dated
May
1,
2020
and
as
supplemented,
and
the
Statement
of
Additional
Information
dated
May
1,
2020
and
as
supplemented.
These
documents
may
be
obtained
free
of
charge
by
writing
Principal
Funds,
Inc.,
P.O.
Box
8024,
Boston,
MA
02266-8024
or
telephoning
1-800-222-5852.
The
prospectus
may
be
viewed
at
www.PrincipalFunds.
com/prospectuses-pvc.
PROXY
VOTING
POLICIES
A
description
of
the
policies
and
procedures
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
the
results
of
the
proxy
votes
for
the
most
recent
twelve
months
ended
June
30
may
be
obtained
free
of
charge
by
telephoning
1-800-222-5852,
or
on
the
SEC
website
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
each
year
as
a
part
of
Form
N-PORT.
The
Fund’s
Form
N-PORT
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
1-202-551-8090.
STATEMENT
REGARDING
LIQUIDITY
RISK
MANAGEMENT
PROGRAM
Management
has
evaluated
events
and
transactions
that
have
occurred
The
Board
of
Directors
of
Principal
Funds,
Inc.
(the
“Board”)
met
on
March
10,
2020
to
review
the
liquidity
risk
management
program
(the
“Program”)
applicable
to
all
series
of
the
Principal
Variable
Contracts
Funds,
Inc., (each,
a
“Fund”),
pursuant
to
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”)
for
the
period
from
December
1,
2018
through
December
31,
2019
(the
“Reporting
Period”).
At
the
meeting,
the
committee
designated
by
the
Board
to
administer
the
Program,
the
Liquidity
Risk
Management
Committee
(the
“Committee”),
addressed
the
operation,
adequacy
and
effectiveness
of
the
Program,
the
operation
of
each
Fund’s
highly
liquid
investment
minimum,
where
applicable,
and
any
material
changes
made
to
the
Program
during
the
Reporting
Period.
The
Committee
noted
key
factors
it
considered
when
assessing,
managing
and
reviewing
each
Fund’s
liquidity
risk.
Such
factors
included
each
Fund’s
investment
strategy
and
liquidity
of
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions,
including
(a)
whether
the
Fund’s
investment
strategy
is
appropriate
for
an
open-end
fund,
(b)
the
extent
to
which
the
strategy
involves
a
relatively
concentrated
portfolio
or
large
positions
in
particular
issuers,
and
(c)
the
use
of
borrowings
for
investment
purposes
and
use
of
leveraged
derivatives
and
financial
commitment
obligations;
short-term
and
long-term
cash
flow
projections
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
holdings
of
cash
and
cash
equivalents,
as
well
as
borrowing
arrangements
and
other
funding
sources;
and
each
Fund’s
shareholder
ownership
concentration.
There
were
no
material
changes
to
the
Program
during
the
Reporting
Period.
The
Committee
concluded,
based
on
the
operation
of
the
functions
as
described
in
the
Report
that
the
Program
is
operating
as
intended
and
is
effective
in
implementing
the
requirements
of
the
Liquidity
Rule.
217
BOARD
CONSIDERATION
OF
INVESTMENT
ADVISORY
CONTRACTS
During
the
period
covered
by
this
report,
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
(“PVC”)
approved
an
Amended
and
Restated
Subadvisory
Agreement
(the
“Subadvisory
Agreement”)
between
Principal
Global
Investors,
LLC
(the
“Manager”)
and
T.
Rowe
Price
Associates,
Inc.
(the
“Subadvisor”)
related
to
the
LargeCap
Growth
Account
I.
in
connection
with
a
proposal
to
change
the
methodology
for
calculating
the
subadvisory
fee
and
to
amend
the
subadvisory
fee
schedule
to
reduce
the
effective
subadvisory
fee
rate
payable
at
certain
asset
levels.
Approval
of
Amended
and
Restated
Subadvisory
Agreement
LargeCap
Growth
Account
I
On
June
8,
2020,
the
Board
considered
for
the
LargeCap
Growth
Account
I
(the
“Account”)
the
approval
of
an
amended
fee
schedule
under
the
subadvisory
agreement
between
the
Manager
and
the
Subadvisor
with
respect
to
the
Account,
which
would
result
in
a
reduction
of
the
effective
subadvisory
rate
payable
at
certain
asset
levels.
The
Board
reviewed
materials
received
from
the
Manager
regarding
the
proposed
amendment
to
the
Subadvisory
Agreement
and
noted
that
because
the
subadvisory
fee
was
paid
by
the
Manager,
the
amendment
would
not
change
the
management
fee
rate
paid
by
the
Account.
The
Board
considered
the
Manager’s
representation
that
the
amendment
would
not
reduce
the
quality
or
quantity
of
the
services
the
Subadvisor
provides
to
the
Account
and
that
the
Subadvisor’s
obligations
under
the
Subadvisory
Agreement
would
remain
the
same
in
all
material
respects.
The
Board
also
considered
that
the
Manager
was
not
proposing
any
material
changes
to
the
terms
of
the
Subadvisory
Agreement
other
than
to
the
methodology
for
calculating
the
subadvisory
fee
and
the
subadvisory
fee
schedule.
The
Board
considered
that
they
had
last
approved
the
Subadvisory
Agreement
for
the
Account
during
the
annual
contract
renewal
process
that
concluded
at
the
Board
of
Directors’
September
2019
meeting.
They
noted
that
during
the
annual
contract
renewal
process,
they
had
considered
the
nature,
quality
and
extent
of
the
services
provided
by
the
Subadvisor
under
the
Subadvisory
Agreement
and
had
concluded,
based
upon
the
information
provided,
that
the
terms
of
the
Subadvisory
Agreement
were
reasonable
and
that
approval
of
the
Subadvisory
Agreement
was
in
the
best
interests
of
the
Account.
Based
upon
all
of
the
information
considered,
the
Board
concluded
that
it
was
in
the
best
interests
of
the
Account
to
approve
the
amended
Subadvisory
Agreement
and,
accordingly,
recommended
to
the
Board
of
Directors
the
approval
of
the
amended
Subadvisory
Agreement.
principalfunds.com
This
report
must
be
preceded
or
accompanied
by
a
current
prospectus
for
the
Principal
Variable
Contracts
Funds,
Inc.
Principal,
Principal
and
symbol
design,
and
Principal
Financial
Group
are
registered
trademarks
and
services
marks
of
Principal
Financial
Services,
Inc.,
a
Principal
Financial
Group
company.
©
2020
Principal
Financial
Services,
Inc.
|
MM1291-25
|
06/2020
|
873095
Principal
Variable
Contracts
Funds,
Inc.
Semiannual
Report
June
30,
2020
Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
you
may
not
be
receiving
paper
copies
of
the
Fund’s
shareholder
reports
from
the
insurance
company
that
offers
your
contract
unless
you
specifically
request
paper
copies
from
the
insurance
company
or
from
your
financial
intermediary.
Instead,
the
shareholder
reports
will
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made
available
on
a
website,
and
the
insurance
company
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notify
you
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mail
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to
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Instructions
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If
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Table
of
Contents
Not
FDIC
or
NCUA
insured
May
lose
value
•
Not
a
deposit
•
No
bank
or
credit
union
guarantee
Not
insured
by
any
Federal
government
agency
Financial
Statements
1
Notes
to
Financial
Statements
19
Schedules
of
Investments
38
Financial
Highlights
(Includes
performance
information)
96
Shareholder
Expense
Example
112
Supplemental
Information
114
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
1
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Core
Plus
Bond
Account
Diversified
International
Account
Equity
Income
Account
Investment
in
securities--at
cost
..........................................................
$
269,645‌
$
201,823‌
$
431,356‌
Investment
in
affiliated
securities--at
cost
................................................
$
7,169‌
$
623‌
$
13,745‌
Foreign
currency--at
cost
..................................................................
$
–‌
$
42‌
$
–‌
Assets
Investment
in
securities--at
value 
..........................................................
$
281,305‌
(a)
$
234,215‌
(a)
$
636,748‌
Investment
in
affiliated
securities--at
value
.................................................
7,169‌
623‌
13,745‌
Foreign
currency--at
value
..................................................................
–‌
41‌
–‌
Cash
.........................................................................................
1‌
–‌
–‌
Deposits
with
counterparty
..................................................................
8‌
–‌
–‌
Receivables:
Dividends
and
interest
.................................................................
1,666‌
840‌
1,587‌
Fund
shares
sold
.......................................................................
2,015‌
145‌
224‌
Investment
securities
sold
.............................................................
1,445‌
494‌
12,842‌
Variation
margin
on
futures
...........................................................
2‌
–‌
–‌
Total
Assets  
293,611‌
236,358‌
665,146‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
97‌
162‌
259‌
Accrued
distribution
fees
....................................................................
–‌
–‌
5‌
Accrued
directors'
expenses
.................................................................
1‌
3‌
6‌
Accrued
other
expenses
.....................................................................
3‌
45‌
20‌
Cash
overdraft
...............................................................................
–‌
–‌
1‌
Payables:
Fund
shares
redeemed
.................................................................
18‌
268‌
317‌
Investment
securities
purchased
......................................................
31,699‌
577‌
12,730‌
Variation
margin
on
futures
...........................................................
11‌
–‌
–‌
Variation
margin
on
swaps
............................................................
10‌
–‌
–‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
1,123‌
3,079‌
–‌
Total
Liabilities  
32,962‌
4,134‌
13,338‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
260,649‌
$
232,224‌
$
651,808‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
234,638‌
$
202,301‌
$
401,254‌
Total
distributable
earnings
(accumulated
loss)
.............................................
26,011‌
29,923‌
250,554‌
Total
Net
Assets 
$
260,649‌
$
232,224‌
$
651,808‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
400,000‌
300,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
260,649‌
$
232,224‌
$
626,137‌
Shares
issued
and
outstanding
........................................................
21,379‌
16,264‌
26,031‌
Net
Asset
Value
per
share
.............................................................
$
12.19‌
$
14.28‌
$
24.05‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
N/A‌
$
25,671‌
Shares
issued
and
outstanding
........................................................
1,079‌
Net
Asset
Value
per
share
.............................................................
$
23.80‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
2
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Government
&
High
Quality
Bond
Account
LargeCap
Growth
Account
I
MidCap
Account
Investment
in
securities--at
cost
..........................................................
$
226,217‌
$
340,950‌
$
368,426‌
Investment
in
affiliated
securities--at
cost
................................................
$
20,544‌
$
11,023‌
$
923‌
Assets
Investment
in
securities--at
value 
..........................................................
$
231,981‌
$
534,821‌
(a)
$
541,269‌
(a)
Investment
in
affiliated
securities--at
value
.................................................
20,544‌
11,032‌
923‌
Cash
.........................................................................................
–‌
2‌
328‌
Deposits
with
counterparty
..................................................................
209‌
336‌
–‌
Receivables:
Dividends
and
interest
.................................................................
704‌
117‌
94‌
Expense
reimbursement
from
Manager
...............................................
–‌
5‌
–‌
Fund
shares
sold
.......................................................................
1,084‌
158‌
5‌
Investment
securities
sold
.............................................................
3,121‌
351‌
918‌
Variation
margin
on
futures
...........................................................
19‌
51‌
–‌
Total
Assets  
257,662‌
546,873‌
543,537‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
99‌
306‌
245‌
Accrued
distribution
fees
....................................................................
–‌
–‌
4‌
Accrued
directors'
expenses
.................................................................
3‌
2‌
5‌
Accrued
other
expenses
.....................................................................
7‌
9‌
9‌
Payables:
Fund
shares
redeemed
.................................................................
107‌
670‌
2,365‌
Investment
securities
purchased
......................................................
15,718‌
501‌
271‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–‌
2,132‌
197‌
Total
Liabilities  
15,934‌
3,620‌
3,096‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
241,728‌
$
543,253‌
$
540,441‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
237,877‌
$
293,035‌
$
281,785‌
Total
distributable
earnings
(accumulated
loss)
.............................................
3,851‌
250,218‌
258,656‌
Total
Net
Assets 
$
241,728‌
$
543,253‌
$
540,441‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
105,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
241,728‌
$
543,253‌
$
521,494‌
Shares
issued
and
outstanding
........................................................
24,060‌
13,056‌
9,148‌
Net
Asset
Value
per
share
.............................................................
$
10.05‌
$
41.61‌
$
57.01‌
Class
2
:
Net
Assets
..........................................................................
N/A‌
N/A‌
$
18,947‌
Shares
issued
and
outstanding
........................................................
336‌
Net
Asset
Value
per
share
.............................................................
$
56.45‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
3
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
Capital
Appreciation
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Investment
in
securities--at
cost
..........................................................
$
75,831‌
$
113,023‌
$
–‌
Investment
in
affiliated
securities--at
cost
................................................
$
2,159‌
$
42‌
$
532,703‌
Assets
Investment
in
securities--at
value 
..........................................................
$
141,675‌
$
130,434‌
$
–‌
Investment
in
affiliated
securities--at
value
.................................................
2,159‌
42‌
633,815‌
Receivables:
Dividends
and
interest
.................................................................
117‌
491‌
272‌
Fund
shares
sold
.......................................................................
–‌
60‌
75‌
Investment
securities
sold
.............................................................
175‌
220‌
492‌
Total
Assets  
144,126‌
131,247‌
634,654‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
74‌
91‌
121‌
Accrued
distribution
fees
....................................................................
3‌
1‌
24‌
Accrued
directors'
expenses
.................................................................
3‌
3‌
4‌
Accrued
professional
fees
...................................................................
–‌
8‌
–‌
Accrued
other
expenses
.....................................................................
9‌
–‌
8‌
Payables:
Fund
shares
redeemed
.................................................................
987‌
35‌
567‌
Investment
securities
purchased
......................................................
41‌
–‌
271‌
Total
Liabilities  
1,117‌
138‌
995‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
143,009‌
$
131,109‌
$
633,659‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
68,688‌
$
98,513‌
$
496,573‌
Total
distributable
earnings
(accumulated
loss)
.............................................
74,321‌
32,596‌
137,086‌
Total
Net
Assets 
$
143,009‌
$
131,109‌
$
633,659‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
300,000‌
300,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
129,880‌
$
125,019‌
$
516,836‌
Shares
issued
and
outstanding
........................................................
4,378‌
6,748‌
34,413‌
Net
Asset
Value
per
share
.............................................................
$
29.66‌
$
18.53‌
$
15.02‌
Class
2
:
Net
Assets
..........................................................................
$
13,129‌
$
6,090‌
$
116,823‌
Shares
issued
and
outstanding
........................................................
449‌
328‌
7,888‌
Net
Asset
Value
per
share
.............................................................
$
29.24‌
$
18.56‌
$
14.81‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
4
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Investment
in
affiliated
securities--at
cost
................................................
$
158,707‌
$
280,559‌
$
162,045‌
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
176,871‌
$
328,557‌
$
173,850‌
Receivables:
Dividends
and
interest
.................................................................
113‌
53‌
153‌
Fund
shares
sold
.......................................................................
157‌
4‌
19‌
Investment
securities
sold
.............................................................
–‌
112‌
163‌
Total
Assets  
177,141‌
328,726‌
174,185‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
34‌
62‌
33‌
Accrued
distribution
fees
....................................................................
5‌
27‌
7‌
Accrued
directors'
expenses
.................................................................
2‌
3‌
2‌
Accrued
other
expenses
.....................................................................
7‌
8‌
7‌
Payables:
Fund
shares
redeemed
.................................................................
45‌
116‌
182‌
Investment
securities
purchased
......................................................
226‌
53‌
152‌
Total
Liabilities  
319‌
269‌
383‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
176,822‌
$
328,457‌
$
173,802‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
151,429‌
$
269,980‌
$
153,278‌
Total
distributable
earnings
(accumulated
loss)
.............................................
25,393‌
58,477‌
20,524‌
Total
Net
Assets 
$
176,822‌
$
328,457‌
$
173,802‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
200,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
150,889‌
$
195,683‌
$
142,266‌
Shares
issued
and
outstanding
........................................................
12,670‌
10,441‌
11,481‌
Net
Asset
Value
per
share
.............................................................
$
11.91‌
$
18.74‌
$
12.39‌
Class
2
:
Net
Assets
..........................................................................
$
25,933‌
$
132,774‌
$
31,536‌
Shares
issued
and
outstanding
........................................................
2,210‌
7,204‌
2,576‌
Net
Asset
Value
per
share
.............................................................
$
11.73‌
$
18.43‌
$
12.24‌
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
5
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
Investment
in
securities--at
cost
..........................................................
$
–‌
$
132,781‌
$
161,446‌
Investment
in
affiliated
securities--at
cost
................................................
$
259,499‌
$
2,165‌
$
5,059‌
Assets
Investment
in
securities--at
value 
..........................................................
$
–‌
$
136,018‌
(a)
$
166,358‌
(a)
Investment
in
affiliated
securities--at
value
.................................................
289,027‌
2,165‌
5,059‌
Receivables:
Dividends
and
interest
.................................................................
–‌
617‌
198‌
Expense
reimbursement
from
Manager
...............................................
–‌
1‌
–‌
Fund
shares
sold
.......................................................................
6‌
3,083‌
15‌
Investment
securities
sold
.............................................................
92‌
–‌
1,441‌
Total
Assets  
289,125‌
141,884‌
173,071‌
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
55‌
55‌
113‌
Accrued
distribution
fees
....................................................................
28‌
–‌
1‌
Accrued
directors'
expenses
.................................................................
3‌
2‌
3‌
Accrued
other
expenses
.....................................................................
7‌
8‌
9‌
Payables:
Fund
shares
redeemed
.................................................................
98‌
54‌
1,255‌
Investment
securities
purchased
......................................................
–‌
963‌
2,046‌
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–‌
1,594‌
5,634‌
Total
Liabilities  
191‌
2,676‌
9,061‌
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
288,934‌
$
139,208‌
$
164,010‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
249,583‌
$
131,799‌
$
145,550‌
Total
distributable
earnings
(accumulated
loss)
.............................................
39,351‌
7,409‌
18,460‌
Total
Net
Assets 
$
288,934‌
$
139,208‌
$
164,010‌
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000‌
400,000‌
200,000‌
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
154,388‌
$
139,208‌
$
157,935‌
Shares
issued
and
outstanding
........................................................
7,608‌
52,905‌
11,525‌
Net
Asset
Value
per
share
.............................................................
$
20.30‌
$
2.63‌
$
13.70‌
Class
2
:
Net
Assets
..........................................................................
$
134,546‌
N/A‌
$
6,075‌
Shares
issued
and
outstanding
........................................................
6,734‌
446‌
Net
Asset
Value
per
share
.............................................................
$
19.98‌
$
13.63‌
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
6
See
accompanying
notes.
Amounts
in
thousands
Core
Plus
Bond
Account
Diversified
International
Account
Equity
Income
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
36‌
$
8‌
$
58‌
Dividends
..................................................................................
42‌
3,238‌
10,106‌
Withholding
tax
...........................................................................
–‌
(
297‌
)
(
358‌
)
Interest
.....................................................................................
3,853‌
–‌
–‌
Securities
lending
-
net
....................................................................
4‌
4‌
17‌
Total
Income
3,935‌
2,953‌
9,823‌
Expenses:
Management
and
investment
advisory
fees
...............................................
580‌
981‌
1,577‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
N/A‌
34‌
Custodian
fees
.............................................................................
10‌
59‌
6‌
Directors'
expenses
........................................................................
4‌
4‌
9‌
Professional fees
..........................................................................
3‌
19‌
3‌
Total
Expenses
597‌
1,063‌
1,629‌
Net
Investment
Income
(Loss)
3,338‌
1,890‌
8,194‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies,
futures
contracts
and
swap
agreements
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
3,445‌
(
7,814‌
)
(
2,222‌
)
Foreign
currency
transactions
.............................................................
–‌
(
145‌
)
–‌
Futures
contracts
..........................................................................
525‌
–‌
–‌
Swap
agreements
..........................................................................
2,024‌
–‌
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
5,573‌
(
18,093‌
)
(
117,535‌
)
Futures
contracts
..........................................................................
70‌
–‌
–‌
Swap
agreements
..........................................................................
(
149‌
)
–‌
–‌
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
–‌
3‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies,
futures
contracts
and
swap
agreements
11,488‌
(
26,049‌
)
(
119,757‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
14,826‌
$
(
24,159‌
)
$
(
111,563‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
7
See
accompanying
notes.
Amounts
in
thousands
Government
&
High
Quality
Bond
Account
LargeCap
Growth
Account
I
MidCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
29‌
$
28‌
$
3‌
Dividends
..................................................................................
–‌
1,437‌
2,194‌
Withholding
tax
...........................................................................
–‌
(
7‌
)
(
59‌
)
Interest
.....................................................................................
2,182‌
–‌
–‌
Securities
lending
-
net
....................................................................
3‌
7‌
22‌
Total
Income
2,214‌
1,465‌
2,160‌
Expenses:
Management
and
investment
advisory
fees
...............................................
614‌
1,728‌
1,463‌
Distribution
fees
-
Class
2
.................................................................
N/A‌
N/A‌
23‌
Custodian
fees
.............................................................................
3‌
11‌
1‌
Directors'
expenses
........................................................................
4‌
6‌
7‌
Professional fees
..........................................................................
3‌
4‌
3‌
Other
expenses
............................................................................
–‌
–‌
1‌
Total
Gross
Expenses
624‌
1,749‌
1,498‌
Less:
Reimbursement
from
Manager
.....................................................
–‌
39‌
–‌
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–‌
7‌
–‌
Total
Net
Expenses
624‌
1,703‌
1,498‌
Net
Investment
Income
(Loss)
1,590‌
(
238‌
)
662‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
591‌
25,619‌
27,200‌
Investment
transactions
in
affiliated
securities
............................................
–‌
50‌
–‌
Futures
contracts
..........................................................................
(
813‌
)
389‌
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
4,657‌
25,307‌
(
57,558‌
)
Investments
in
affiliated
securities
........................................................
–‌
(
64‌
)
–‌
Futures
contracts
..........................................................................
(
214‌
)
22‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
4,221‌
51,323‌
(
30,358‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
5,811‌
$
51,085‌
$
(
29,696‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
8
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
11‌
$
3‌
$
3,113‌
Dividends
..................................................................................
1,266‌
1,807‌
–‌
Withholding
tax
...........................................................................
(
5‌
)
–‌
–‌
Securities
lending
-
net
....................................................................
1‌
–‌
–‌
Total
Income
1,273‌
1,810‌
3,113‌
Expenses:
Management
and
investment
advisory
fees
...............................................
440‌
572‌
735‌
Distribution
fees
-
Class
2
.................................................................
16‌
8‌
143‌
Custodian
fees
.............................................................................
1‌
1‌
–‌
Directors'
expenses
........................................................................
3‌
3‌
8‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Expenses
463‌
587‌
889‌
Net
Investment
Income
(Loss)
810‌
1,223‌
2,224‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
(
590‌
)
3,297‌
2‌
Investment
transactions
in
affiliated
securities
............................................
–‌
–‌
1,178‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
(
5,711‌
)
(
26,686‌
)
–‌
Investments
in
affiliated
securities
........................................................
–‌
–‌
(
33,684‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
(
6,301‌
)
(
23,389‌
)
(
32,504‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
5,491‌
)
$
(
22,166‌
)
$
(
30,280‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
9
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
1,288‌
$
915‌
$
1,727‌
Total
Income
1,288‌
915‌
1,727‌
Expenses:
Management
and
investment
advisory
fees
...............................................
205‌
373‌
205‌
Distribution
fees
-
Class
2
.................................................................
31‌
163‌
38‌
Directors'
expenses
........................................................................
3‌
5‌
3‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Expenses
242‌
544‌
249‌
Net
Investment
Income
(Loss)
1,046‌
371‌
1,478‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
(
83‌
)
(
414‌
)
53‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
(
6,068‌
)
(
21,875‌
)
(
4,903‌
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
(
6,151‌
)
(
22,289‌
)
(
4,850‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
5,105‌
)
$
(
21,918‌
)
$
(
3,372‌
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Six
Months
Ended
June
30,
2020
(unaudited)
10
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
239‌
$
12‌
$
9‌
Dividends
..................................................................................
–‌
–‌
1,036‌
Withholding
tax
...........................................................................
–‌
–‌
(
1‌
)
Interest
.....................................................................................
–‌
1,581‌
–‌
Securities
lending
-
net
....................................................................
–‌
1‌
70‌
Total
Income
239‌
1,594‌
1,114‌
Expenses:
Management
and
investment
advisory
fees
...............................................
326‌
325‌
670‌
Distribution
fees
-
Class
2
.................................................................
164‌
N/A‌
7‌
Custodian
fees
.............................................................................
–‌
5‌
2‌
Directors'
expenses
........................................................................
4‌
3‌
3‌
Professional fees
..........................................................................
3‌
3‌
3‌
Total
Gross
Expenses
497‌
336‌
685‌
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–‌
6‌
–‌
Total
Net
Expenses
497‌
330‌
685‌
Net
Investment
Income
(Loss)
(
258‌
)
1,264‌
429‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–‌
411‌
273‌
Investment
transactions
in
affiliated
securities
............................................
(
1,050‌
)
–‌
–‌
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–‌
1,631‌
(
20,651‌
)
Investments
in
affiliated
securities
........................................................
(
21,332‌
)
–‌
–‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
(
22,382‌
)
2,042‌
(
20,378‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
22,640‌
)
$
3,306‌
$
(
19,949‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
11
See
accompanying
notes.
Amounts
in
thousands
Core
Plus
Bond
Account
Diversified
International
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
3,338‌
$
8,756‌
$
1,890‌
$
4,743‌
Net
realized
gain
(loss)
on
investments
,
foreign
currencies
,
futures
contracts
and
swap
agreements
...
5,994‌
4,484‌
(
7,959‌
)
421‌
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
swap
agreements
...............................................................................................
5,494‌
15,149‌
(
18,090‌
)
46,445‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
14,826‌
28,389‌
(
24,159‌
)
51,609‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
10,172‌
)
–‌
(
16,680‌
)
Class
2
..............................................................................................
N/A‌
–‌
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
10,172‌
)
–‌
(
16,680‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
26,978‌
50,731‌
7,295‌
16,466‌
Class
2
..............................................................................................
N/A‌
678‌
N/A‌
282‌
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
13,863‌
N/A‌
N/A‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
10,172‌
–‌
16,680‌
Dollars
redeemed:
Class
1
..............................................................................................
(
34,029‌
)
(
120,810‌
)
(
17,680‌
)
(
34,685‌
)
Class
2
..............................................................................................
N/A‌
(
1,497‌
)
N/A‌
(
2,536‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,051‌
)
(
46,863‌
)
(
10,385‌
)
(
3,793‌
)
Total
Increase
(Decrease)
7,775‌
(
28,646‌
)
(
34,544‌
)
31,136‌
Net
Assets
Beginning
of
period
......................................................................................
252,874‌
281,520‌
266,768‌
235,632‌
End
of
period
............................................................................................
$
260,649‌
$
252,874‌
$
232,224‌
$
266,768‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
2,276‌
4,480‌
542‌
1,091‌
Class
2
..............................................................................................
N/A‌
61‌
N/A‌
19‌
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
1,210‌
N/A‌
N/A‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
891‌
–‌
1,154‌
Shares
redeemed:
Class
1
..............................................................................................
(
2,891‌
)
(
10,571‌
)
(
1,262‌
)
(
2,292‌
)
Class
2
..............................................................................................
N/A‌
(
132‌
)
N/A‌
(
165‌
)
Net
Increase
(Decrease)
..................................................................................
(
615‌
)
(
4,061‌
)
(
720‌
)
(
193‌
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
12
See
accompanying
notes.
Amounts
in
thousands
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
8,194‌
$
15,671‌
$
1,590‌
$
5,203‌
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
(
2,222‌
)
25,250‌
(
222‌
)
447‌
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
117,535‌
)
143,189‌
4,443‌
8,424‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
111,563‌
)
184,110‌
5,811‌
14,074‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
31,963‌
)
–‌
(
6,457‌
)
Class
2
..............................................................................................
–‌
(
1,260‌
)
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
33,223‌
)
–‌
(
6,457‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
32,111‌
30,924‌
28,920‌
45,780‌
Class
2
..............................................................................................
1,759‌
2,812‌
N/A‌
109‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
31,963‌
–‌
6,457‌
Class
2
..............................................................................................
–‌
1,260‌
N/A‌
–‌
Dollars
redeemed:
Class
1
..............................................................................................
(
40,422‌
)
(
102,774‌
)
(
34,335‌
)
(
38,035‌
)
Class
2
..............................................................................................
(
3,262‌
)
(
3,271‌
)
N/A‌
(
2,835‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
9,814‌
)
(
39,086‌
)
(
5,415‌
)
11,476‌
Total
Increase
(Decrease)
(
121,377‌
)
111,801‌
396‌
19,093‌
Net
Assets
Beginning
of
period
......................................................................................
773,185‌
661,384‌
241,332‌
222,239‌
End
of
period
............................................................................................
$
651,808‌
$
773,185‌
$
241,728‌
$
241,332‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,383‌
1,185‌
2,909‌
4,656‌
Class
2
..............................................................................................
73‌
107‌
N/A‌
11‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
1,212‌
–‌
662‌
Class
2
..............................................................................................
–‌
48‌
N/A‌
–‌
Shares
redeemed:
Class
1
..............................................................................................
(
1,647‌
)
(
3,931‌
)
(
3,451‌
)
(
3,904‌
)
Class
2
..............................................................................................
(
134‌
)
(
127‌
)
N/A‌
(
289‌
)
Net
Increase
(Decrease)
..................................................................................
(
325‌
)
(
1,506‌
)
(
542‌
)
1,136‌
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
13
See
accompanying
notes.
Amounts
in
thousands
LargeCap
Growth
Account
I
MidCap
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
(
238‌
)
$
126‌
$
662‌
$
4,139‌
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
26,058‌
37,349‌
27,200‌
65,028‌
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
25,265‌
79,915‌
(
57,558‌
)
131,244‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
51,085‌
117,390‌
(
29,696‌
)
200,411‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
34,797‌
)
–‌
(
78,890‌
)
Class
2
..............................................................................................
N/A‌
–‌
–‌
(
2,711‌
)
Total
Dividends
and
Distributions
–‌
(
34,797‌
)
–‌
(
81,601‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
39,058‌
49,655‌
10,484‌
16,147‌
Class
2
..............................................................................................
N/A‌
1,475‌
904‌
241‌
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
112,835‌
N/A‌
N/A‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
34,797‌
–‌
78,890‌
Class
2
..............................................................................................
N/A‌
–‌
–‌
2,711‌
Dollars
redeemed:
Class
1
..............................................................................................
(
49,543‌
)
(
72,723‌
)
(
48,216‌
)
(
96,550‌
)
Class
2
..............................................................................................
N/A‌
(
5,277‌
)
(
1,697‌
)
(
1,662‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
10,485‌
)
120,762‌
(
38,525‌
)
(
223‌
)
Total
Increase
(Decrease)
40,600‌
203,355‌
(
68,221‌
)
118,587‌
Net
Assets
Beginning
of
period
......................................................................................
502,653‌
299,298‌
608,662‌
490,075‌
End
of
period
............................................................................................
$
543,253‌
$
502,653‌
$
540,441‌
$
608,662‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,059‌
1,406‌
203‌
272‌
Class
2
..............................................................................................
N/A‌
42‌
17‌
4‌
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
3,150‌
N/A‌
N/A‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
1,003‌
–‌
1,395‌
Class
2
..............................................................................................
N/A‌
–‌
–‌
48‌
Shares
redeemed:
Class
1
..............................................................................................
(
1,357‌
)
(
2,043‌
)
(
863‌
)
(
1,633‌
)
Class
2
..............................................................................................
N/A‌
(
148‌
)
(
31‌
)
(
28‌
)
Net
Increase
(Decrease)
..................................................................................
(
298‌
)
3,410‌
(
674‌
)
58‌
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
14
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Real
Estate
Securities
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
810‌
$
1,897‌
$
1,223‌
$
2,548‌
Net
realized
gain
(loss)
on
investments
..................................................................
(
590‌
)
9,392‌
3,297‌
10,570‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
5,711‌
)
30,626‌
(
26,686‌
)
28,328‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
5,491‌
)
41,915‌
(
22,166‌
)
41,446‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
14,537‌
)
–‌
(
12,865‌
)
Class
2
..............................................................................................
–‌
(
1,192‌
)
–‌
(
409‌
)
Total
Dividends
and
Distributions
–‌
(
15,729‌
)
–‌
(
13,274‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
2,935‌
2,236‌
8,622‌
13,048‌
Class
2
..............................................................................................
1,417‌
3,206‌
1,849‌
2,340‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
14,537‌
–‌
12,865‌
Class
2
..............................................................................................
–‌
1,192‌
–‌
409‌
Dollars
redeemed:
Class
1
..............................................................................................
(
11,285‌
)
(
26,520‌
)
(
17,940‌
)
(
31,224‌
)
Class
2
..............................................................................................
(
1,330‌
)
(
1,378‌
)
(
1,186‌
)
(
602‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
8,263‌
)
(
6,727‌
)
(
8,655‌
)
(
3,164‌
)
Total
Increase
(Decrease)
(
13,754‌
)
19,459‌
(
30,821‌
)
25,008‌
Net
Assets
Beginning
of
period
......................................................................................
156,763‌
137,304‌
161,930‌
136,922‌
End
of
period
............................................................................................
$
143,009‌
$
156,763‌
$
131,109‌
$
161,930‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
111‌
77‌
449‌
621‌
Class
2
..............................................................................................
49‌
109‌
93‌
109‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
509‌
–‌
619‌
Class
2
..............................................................................................
–‌
42‌
–‌
20‌
Shares
redeemed:
Class
1
..............................................................................................
(
395‌
)
(
894‌
)
(
936‌
)
(
1,476‌
)
Class
2
..............................................................................................
(
46‌
)
(
47‌
)
(
60‌
)
(
29‌
)
Net
Increase
(Decrease)
..................................................................................
(
281‌
)
(
204‌
)
(
454‌
)
(
136‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
15
See
accompanying
notes.
Amounts
in
thousands
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
2,224‌
$
14,101‌
$
1,046‌
$
4,273‌
Net
realized
gain
(loss)
on
investments
..................................................................
1,180‌
20,849‌
(
83‌
)
4,079‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
33,684‌
)
90,645‌
(
6,068‌
)
18,902‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
30,280‌
)
125,595‌
(
5,105‌
)
27,254‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
34,485‌
)
–‌
(
7,836‌
)
Class
2
..............................................................................................
–‌
(
6,978‌
)
–‌
(
1,118‌
)
Total
Dividends
and
Distributions
–‌
(
41,463‌
)
–‌
(
8,954‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
8,582‌
11,207‌
6,413‌
10,371‌
Class
2
..............................................................................................
6,432‌
12,791‌
2,985‌
3,994‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
34,485‌
–‌
7,836‌
Class
2
..............................................................................................
–‌
6,978‌
–‌
1,118‌
Dollars
redeemed:
Class
1
..............................................................................................
(
41,605‌
)
(
102,578‌
)
(
15,249‌
)
(
24,553‌
)
Class
2
..............................................................................................
(
8,300‌
)
(
13,398‌
)
(
1,697‌
)
(
2,337‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
34,891‌
)
(
50,515‌
)
(
7,548‌
)
(
3,571‌
)
Total
Increase
(Decrease)
(
65,171‌
)
33,617‌
(
12,653‌
)
14,729‌
Net
Assets
Beginning
of
period
......................................................................................
698,830‌
665,213‌
189,475‌
174,746‌
End
of
period
............................................................................................
$
633,659‌
$
698,830‌
$
176,822‌
$
189,475‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
567‌
740‌
534‌
886‌
Class
2
..............................................................................................
442‌
852‌
252‌
338‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
2,314‌
–‌
668‌
Class
2
..............................................................................................
–‌
474‌
–‌
96‌
Shares
redeemed:
Class
1
..............................................................................................
(
2,837‌
)
(
6,736‌
)
(
1,322‌
)
(
2,065‌
)
Class
2
..............................................................................................
(
558‌
)
(
895‌
)
(
152‌
)
(
199‌
)
Net
Increase
(Decrease)
..................................................................................
(
2,386‌
)
(
3,251‌
)
(
688‌
)
(
276‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
16
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
371‌
$
6,095‌
$
1,478‌
$
4,893‌
Net
realized
gain
(loss)
on
investments
..................................................................
(
414‌
)
5,613‌
53‌
4,715‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
21,875‌
)
59,644‌
(
4,903‌
)
13,562‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
21,918‌
)
71,352‌
(
3,372‌
)
23,170‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
13,076‌
)
–‌
(
9,918‌
)
Class
2
..............................................................................................
–‌
(
8,339‌
)
–‌
(
1,807‌
)
Total
Dividends
and
Distributions
–‌
(
21,415‌
)
–‌
(
11,725‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
9,021‌
13,665‌
6,586‌
11,700‌
Class
2
..............................................................................................
4,936‌
12,305‌
3,666‌
5,814‌
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
346‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
107‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
13,076‌
–‌
9,918‌
Class
2
..............................................................................................
–‌
8,339‌
–‌
1,807‌
Dollars
redeemed:
Class
1
..............................................................................................
(
13,665‌
)
(
33,646‌
)
(
19,397‌
)
(
30,930‌
)
Class
2
..............................................................................................
(
6,764‌
)
(
14,790‌
)
(
2,266‌
)
(
4,297‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
6,472‌
)
(
1,051‌
)
(
11,411‌
)
(
5,535‌
)
Total
Increase
(Decrease)
(
28,390‌
)
48,886‌
(
14,783‌
)
5,910‌
Net
Assets
Beginning
of
period
......................................................................................
356,847‌
307,961‌
188,585‌
182,675‌
End
of
period
............................................................................................
$
328,457‌
$
356,847‌
$
173,802‌
$
188,585‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
497‌
719‌
538‌
937‌
Class
2
..............................................................................................
276‌
654‌
303‌
468‌
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A‌
N/A‌
N/A‌
27‌
Class
2
..............................................................................................
N/A‌
N/A‌
N/A‌
8‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
698‌
–‌
811‌
Class
2
..............................................................................................
–‌
452‌
–‌
149‌
Shares
redeemed:
Class
1
..............................................................................................
(
756‌
)
(
1,766‌
)
(
1,610‌
)
(
2,464‌
)
Class
2
..............................................................................................
(
381‌
)
(
790‌
)
(
191‌
)
(
346‌
)
Net
Increase
(Decrease)
..................................................................................
(
364‌
)
(
33‌
)
(
960‌
)
(
410‌
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
17
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
(
258‌
)
$
5,175‌
$
1,264‌
$
3,167‌
Net
realized
gain
(loss)
on
investments
..................................................................
(
1,050‌
)
7,194‌
411‌
367‌
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
21,332‌
)
56,229‌
1,631‌
2,788‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
22,640‌
)
68,598‌
3,306‌
6,322‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
–‌
(
10,497‌
)
–‌
(
3,392‌
)
Class
2
..............................................................................................
–‌
(
8,871‌
)
N/A‌
–‌
Total
Dividends
and
Distributions
–‌
(
19,368‌
)
–‌
(
3,392‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
10,930‌
13,010‌
38,645‌
32,469‌
Class
2
..............................................................................................
5,650‌
9,949‌
N/A‌
1,115‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
10,497‌
–‌
3,392‌
Class
2
..............................................................................................
–‌
8,871‌
N/A‌
–‌
Dollars
redeemed:
Class
1
..............................................................................................
(
13,591‌
)
(
21,196‌
)
(
33,595‌
)
(
56,911‌
)
Class
2
..............................................................................................
(
6,828‌
)
(
10,097‌
)
N/A‌
(
5,301‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
3,839‌
)
11,034‌
5,050‌
(
25,236‌
)
Total
Increase
(Decrease)
(
26,479‌
)
60,264‌
8,356‌
(
22,306‌
)
Net
Assets
Beginning
of
period
......................................................................................
315,413‌
255,149‌
130,852‌
153,158‌
End
of
period
............................................................................................
$
288,934‌
$
315,413‌
$
139,208‌
$
130,852‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
556‌
625‌
14,975‌
12,624‌
Class
2
..............................................................................................
303‌
486‌
N/A‌
437‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
–‌
517‌
–‌
1,330‌
Class
2
..............................................................................................
–‌
443‌
N/A‌
–‌
Shares
redeemed:
Class
1
..............................................................................................
(
707‌
)
(
1,024‌
)
(
13,033‌
)
(
22,197‌
)
Class
2
..............................................................................................
(
344‌
)
(
496‌
)
N/A‌
(
2,065‌
)
Net
Increase
(Decrease)
..................................................................................
(
192‌
)
551‌
1,942‌
(
9,871‌
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
18
See
accompanying
notes.
Amounts
in
thousands
SmallCap
Account
Period
Ended
June
30,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
...................................................................................................................
$
429‌
$
976‌
Net
realized
gain
(loss)
on
investments
.........................................................................................................
273‌
12,355‌
Change
in
unrealized
appreciation/depreciation
of
investments
................................................................................
(
20,651‌
)
31,227‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
19,949‌
)
44,558‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
.....................................................................................................................................
–‌
(
28,785‌
)
Class
2
.....................................................................................................................................
–‌
(
937‌
)
Total
Dividends
and
Distributions
–‌
(
29,722‌
)
Capital
Share
Transactions
Dollars
sold:
Class
1
.....................................................................................................................................
7,176‌
7,971‌
Class
2
.....................................................................................................................................
829‌
1,072‌
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
–‌
28,785‌
Class
2
.....................................................................................................................................
–‌
937‌
Dollars
redeemed:
Class
1
.....................................................................................................................................
(
14,439‌
)
(
29,980‌
)
Class
2
.....................................................................................................................................
(
870‌
)
(
475‌
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,304‌
)
8,310‌
Total
Increase
(Decrease)
(
27,253‌
)
23,146‌
Net
Assets
Beginning
of
period
.............................................................................................................................
191,263‌
168,117‌
End
of
period
...................................................................................................................................
$
164,010‌
$
191,263‌
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
.....................................................................................................................................
581‌
506‌
Class
2
.....................................................................................................................................
62‌
70‌
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
–‌
1,996‌
Class
2
.....................................................................................................................................
–‌
65‌
Shares
redeemed:
Class
1
.....................................................................................................................................
(
1,087‌
)
(
1,890‌
)
Class
2
.....................................................................................................................................
(
63‌
)
(
30‌
)
Net
Increase
(Decrease)
.........................................................................................................................
(
507‌
)
717‌
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
19
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
Core
Plus
Bond
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
LargeCap
Growth
Account
I,
MidCap
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
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
(“ASC”)
Topic
946,
Financial
Services
-
Investment
Companies
.
The
Accounts
have
not
provided
financial
support
and
are
not
contractually
required
to
provide
financial
support
to
any
investee.
Effective
June
7,
2019,
Core
Plus
Bond
Account
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
taxable
exchange
of
5,873,000
shares
from
Income
Account
for
1,210,000
shares
valued
at
$13,863,000
of
Core
Plus
Bond
Account
at
an
approximate
exchange
rate
of
.21
and
.21
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
Income
Account,
with
a
fair
value
of
approximately
$13,145,000
and
a
cost
of
$12,607,000
and
$613,000
cash
were
the
primary
assets
acquired
by
Core
Plus
Bond
Account
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
Core
Plus
Bond
Account
were
recorded
at
fair
value.
The
net
assets
of
Income
Account
and
Core
Plus
Bond
Account
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$13,863,000
($4,875,000
of
accumulated
realized
gain)
and
$304,718,000,
respectively.
The
net
assets
of
Core
Plus
Bond
Account
immediately
following
the
acquisition
were
$318,581,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
Core
Plus
Bond
Account,
Core
Plus
Bond
Account’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$11,379,000
of
net
investment
income,
$24,559,000
of
net
realized
and
unrealized
gain
on
investments,
and
$35,938,000
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
Income
Account
that
have
been
included
in
Core
Plus
Bond
Account’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
LargeCap
Growth
Account
I
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Growth
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
non-taxable
exchange
of
4,657,000
shares
from
LargeCap
Growth
Account
for
3,150,000
shares
valued
at
$112,835,000
of
LargeCap
Growth
Account
I
at
an
approximate
exchange
rate
of
.68
and
.67
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
LargeCap
Growth
Account,
with
a
fair
value
of
approximately
$109,603,000
and
a
cost
of
$97,236,000
and
$3,176,000
cash
were
the
primary
assets
acquired
by
LargeCap
Growth
Account
I
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
LargeCap
Growth
Account
I
were
recorded
at
fair
value;
however,
the
cost
basis
of
the
investments
received
from
LargeCap
Growth
Account
were
maintained
through
the
reorganization.
The
net
assets
of
LargeCap
Growth
Account
and
LargeCap
Growth
Account
I
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$112,835,000
($650,000
of
accumulated
realized
gain)
and
$351,045,000,
respectively.
The
net
assets
of
LargeCap
Growth
Account
I
immediately
following
the
acquisition
were
$463,880,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
LargeCap
Growth
Account
I,
LargeCap
Growth
Account
I’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$132,000
of
net
investment
income,
$134,661,000
of
net
realized
and
unrealized
gain
on
investments,
and
$134,793,000
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
Growth
Account
that
have
been
included
in
LargeCap
Growth
Account
I’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
SAM
Flexible
Income
Portfolio
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Multi-Asset
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
non-taxable
exchange
of
43,000
shares
from
Multi-Asset
Income
Account
for
35,000
shares
valued
at
$453,000
of
SAM
Flexible
Income
Portfolio
at
an
approximate
exchange
rate
of
.83
and
.83
for
Class
1
and
Class
2
shares,
respectively.
$457,000
cash
was
the
primary
asset
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
20
acquired
by
SAM
Flexible
Income
Portfolio
on
June
7,
2019.
The
net
assets
of
Multi-Asset
Income
Account
and
SAM
Flexible
Income
Portfolio
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$453,000
and
$185,924,000,
respectively.
The
net
assets
of
SAM
Flexible
Income
Portfolio
immediately
following
the
acquisition
were
$186,377,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
SAM
Flexible
Income
Portfolio,
SAM
Flexible
Income
Portfolio’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$4,900,000
of
net
investment
income,
$18,302,000
of
net
realized
and
unrealized
gain
on
investments,
and
$23,202,000
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
Multi-Asset
Income
Account
that
have
been
included
in
SAM
Flexible
Income
Portfolio’s
statement
of
operations
since
June
7,
2019.
Effective
June
14,
2019,
Class
2
shares
discontinued
and
converted
into
Class
1
shares
for
the
following
Accounts:
Both
classes
of
shares
for
each
of
the
Accounts
represent
interests
in
the
same
portfolio
of
investments
and
will
vote
together
as
a
single
class,
except
where
otherwise
required
by
law
or
as
determined
by
the
Fund’s
Board
of
Directors.
In
addition,
the
Board
of
Directors
declares
separate
dividends
on
each
class
of
shares.
2.
Significant
Accounting
Policies
The
preparation
of
financial
statements
in
conformity
with
U.S. GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Accounts:
Security
Valuation.
Certain
of
the
Accounts,
including
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
and
SAM
Strategic
Growth
Portfolio
(collectively,
the
“SAM
Portfolios”),
invest
in
other
series
of
the
Fund
and
in
class
R-6
and
Institutional
shares
of
series
of
Principal
Funds,
Inc.,
which
are
valued
at
the
closing
net
asset
value
per
share
of
each
respective
fund
on
the
day
of
valuation.
In
addition,
certain
of
the
Accounts
invest
in
Principal
Exchange-Traded
Funds,
which
are
valued
at
closing
exchange
price.
The
Accounts
also
invest
in
other
publicly
traded
investment
funds.
Other
publicly
traded
investment
funds
are
valued
at
the
respective
fund’s
net
asset
value.
The
shares
of
the
other
series
of
the
Fund,
Principal
Funds,
Inc.,
Principal
Exchange-Traded
Funds,
and
other
publicly
traded
investment
funds
are
referred
to
as
the
“Underlying
Funds”.
The
Accounts
(with
the
exception
of
the
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
or
an
evaluated
bid
price
provided
by
a
pricing
service.
Pricing
services
use
modeling
techniques
that
incorporate
security
characteristics
such
as
current
quotations
by
broker/dealers,
coupon,
maturity,
quality,
type
of
issue,
trading
characteristics,
other
yield
and
risk
factors,
and
other
market
conditions
to
determine
an
evaluated
bid
price
or,
in
the
case
of
certain
credit
default
swaps,
a
mean
price
provided
by
a
pricing
service.
When
reliable
market
quotations
are
not
considered
to
be
readily
available,
which
may
be
the
case,
for
example,
with
respect
to
restricted
securities,
certain
debt
securities,
preferred
stocks,
and
foreign
securities,
the
investments
are
valued
at
their
fair
value
as
determined
in
good
faith
by
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,
provided
by
independent
pricing
services,
are
reviewed
in
the
course
of
making
a
good
faith
determination
of
a
security’s
fair
value,
including,
but
not
limited
to,
price
movements
in
American
depository
receipts
(“ADRs”),
futures
contracts,
industry
indices,
general
indices,
and
foreign
currencies.
Core
Plus
Bond
Account
LargeCap
Growth
Account
I
Diversified
International
Account
Short-Term
Account
Government
&
High
Quality
Bond
Account
1.
Organization
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
21
To
the
extent
the
Accounts
invest
in
foreign
securities
listed
on
foreign
exchanges
which
trade
on
days
on
which
the
Accounts
do
not
determine
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
Fund
to
value
such
securities
at
prices
at
which
it
is
expected
those
shares
may
be
sold,
and
the
Manager
or
any
sub-advisor
is
authorized
to
make
such
determinations
subject
to
such
oversight
by
the
Fund’s
Board
of
Directors
as
may
occasionally
be
necessary.
Currency
Translation.
Foreign
holdings
are
translated
to
U.S.
dollars
using
the
exchange
rate
at
the
daily
close
of
the
New
York
Stock
Exchange.
The
identified
cost
of
the
Accounts’
holdings
is
translated
at
approximate
rates
prevailing
when
acquired.
Income
and
expense
amounts
are
translated
at
approximate
rates
prevailing
when
received
or
paid,
with
daily
accruals
of
such
amounts
reported
at
approximate
rates
prevailing
at
the
date
of
valuation.
Since
the
carrying
amount
of
the
foreign
securities
is
determined
based
on
the
exchange
rate
and
market
values
at
the
close
of
the
period,
it
is
not
practicable
to
isolate
that
portion
of
the
results
of
operations
arising
as
a
result
of
changes
in
the
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
during
the
period.
Net
realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
trade
and
settlement
dates
on
security
transactions,
and
the
difference
between
the
amount
of
dividends,
interest
income,
interest
expense,
and
foreign
withholding
taxes
recorded
on
the
books
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
appreciation
(depreciation)
on
translation
of
assets
and
liabilities
in
foreign
currencies
arise
from
changes
in
the
exchange
rate
relating
to
assets
and
liabilities,
other
than
investments
in
securities,
purchased
and
held
in
non-U.S.
denominated
currencies.
The
following accounts
held
securities
denominated
in
foreign
currencies
that
exceeded
5%
of
net
assets
of
the
respective
account as
of
June
30,
2020:
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,
respectively,
on
the
level
yield
method
over
the
expected
lives
of
the
respective
securities.
Callable
debt
securities
purchased
at
a
premium
are
amortized
to
the
earliest
call
date
and
to
the
callable
amount,
if
other
than
par.
The Accounts
allocate
all
income
and
realized
and
unrealized
gains
or
losses
on
a
daily
basis
to
each
class
of
shares
based
upon
the
relative
proportion
of
the
value
of
shares
outstanding
of
each class. 
Distributions
from
Real
Estate
Investment
Trusts
("REITs")
may
be
characterized
as
ordinary
income,
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
are
used
in
reporting
the
character
of
income
and
distributions
for
financial
statement
purposes.
Real
Estate
Securities
Account
receives
substantial
distributions
from
holdings
in
REITs. 
Expenses.
Expenses
directly
attributed
to
a
particular account
are
charged
to
that
account.
Other
expenses
not
directly
attributed
to
a
particular 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
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.
Diversified
International
Account
Euro
20.0%
Japanese
Yen
16.4
Swiss
Franc
8.7
Canadian
Dollar
7.5
British
Pound
Sterling
6.7
Hong
Kong
Dollar
6.6
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
22
In
addition
to
the
expenses
the Accounts
bear
directly,
each
of
the Accounts
may
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 Accounts
may
own
different
proportions
of
Underlying
Funds
at
different
times,
the
amount
of
expense
incurred
indirectly
by
each Account
will
vary.
Expenses
included
in
the
statements
of
operations
of
the Accounts
reflect
the
expenses
of
each
Account
and do
not
include
any
expenses
associated
with
the
Underlying
Funds. 
Dividends
and
Distributions
to
Shareholders.
Dividends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
and
distributions
to
shareholders
from
net
investment
income
and
net
realized
gain
from
investments
and
foreign
currency
transactions
are
determined
in
accordance
with
federal
tax
regulations,
which
may
differ
from
U.S.
GAAP.
These
differences
are
primarily
due
to
differing
treatments
for
amortization
of
premiums
and
discounts,
net
operating
losses,
foreign
currency
transactions,
options
and
futures
contracts,
certain
defaulted
securities,
sales
of
passive
foreign
investment
companies,
losses
deferred
due
to
wash
sales,
mortgage-backed
securities,
certain
preferred
securities,
swap
agreements,
short
sales,
partnership
investments,
REITs,
utilization
of
earnings
and
profits
distributed
to
shareholders
on
redemption
of
shares,
and
limitations
imposed
by
Sections
381
–
384
of
the
Internal
Revenue
Code.
Permanent
book
and
tax
basis
differences
are
reclassified
within
the
capital
accounts
based
on
federal
tax-basis
treatment;
temporary
differences
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
current
and
accumulated
earnings
and
profits
for
federal
income
tax
purposes,
they
are
reported
as
return
of
capital
distributions.
Federal
Income
Taxes.
No
provision
for
federal
income
taxes
is
considered
necessary
because
each
of
the Accounts
intends
to
qualify
as
a
“regulated
investment
company”
under
the
Internal
Revenue
Code
and
intends
to
distribute
each
year
substantially
all
of
its
net
investment
income
and
realized
capital
gains
to
shareholders.
Management
evaluates
tax
positions
taken
or
expected
to
be
taken
in
the
course
of
preparing
the
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,
2020,
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
2016-2018.
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
the
statements
of
operations.
In
consideration
of
recent
decisions
rendered
by
European
courts,
certain
of
the Accounts
have
filed
additional
tax
reclaims
for
taxes
withheld
in
prior
years.
Due
to
the
uncertainty
and
timing
of
these
reclaims,
a
corresponding
receivable
will
only
be
recorded
when
both
the
amount
is
known
and
there
are
no
significant
uncertainties
regarding
collectability.
Gains
realized
upon
the
disposition
of
certain
foreign
securities
held
by
certain
of
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
statements
of
operations.
In
certain
countries,
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
statements
of
assets
and
liabilities. As
of June
30,
2020,
none
of
the
Accounts
had
a
deferred
tax
liability.
Recent
Accounting
Pronouncements.
In
March
2020,
the
Financial
Accounting
Standards
Board
("FASB")
issued
Accounting
Standards
Update
("ASU")
No.
2020-04,
Reference
Rate
Reform
(Topic
848);
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting,
which
provides
optional
guidance
for
a
limited
period
of
time
to
ease
the
potential
burden
in
accounting
for
(or
recognizing
the
effects
of)
reference
rate
reform.
The
guidance
is
applicable
to
contracts
referencing
LIBOR
or
another
reference
rate
that
is
expected
to
be
discontinued
due
to
reference
rate
reform. The
ASU
is
effective
as
of
March
12,
2020
and
generally
can
be
applied
through
December
31,
2022.
At
this
time,
management
is
evaluating
the
implications
of
the
ASU.
In
August
2018,
the
FASB
issued
ASU
No.
2018-13,
Fair
Value
Measurement
(Topic
820):
Disclosure
Framework
-
Changes
to
the
Disclosure
Requirements
for
Fair
Value
Measurement,
which
amends
and
eliminates
certain
disclosure
requirements
for
fair
value
as
part
of
its
framework
project.
The
ASU
is
effective
for
annual
and
interim
periods
beginning
after
December
15,
2019.
The
early
adoption
of
the
removal
or
modification
of
disclosures
and
delay
of
adoption
of
the
additional
disclosures
is
permitted.
As
of December
31,
2018,
the Accounts
have
adopted
the
removal
and
modification
of
applicable
disclosures.
In
March
2017,
the
FASB
issued
ASU
No.
2017-08,
Premium
Amortization
on
Purchased
Callable
Debt
Securities,
which
amends
the
accounting
standards
to
shorten
the
amortization
period
of
certain
purchased
callable
debt
securities
to
the
earliest
call
date.
The
ASU
is
effective
for
annual
and
interim
periods
beginning
after
December
15,
2018.
The
Accounts have
adopted
the
new
amendment
as
of
January
1,
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
23
2019.
The
adoption
of
the
ASU
resulted
in
a
cumulative
effective
adjustment
to
components
within
total
distributable
earnings
(accumulated
loss)
on
the
statements
of
assets
and
liabilities
as
of
the
beginning
of
the
fiscal
year.
This
cumulative
effective
adjustment did
not
have
a
material
impact
on
the
financial
statements
and
did
not
impact
net
assets
of
the
Accounts.
3.
Operating
Policies
Borrowings.
Pursuant
to
an
exemptive
order
issued
by
the
Securities
and
Exchange
Commission
(the
"SEC"),
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
London
Interbank
Offered Rate
("LIBOR")
rate
plus
1.00%).
The
interest
income
received
is
included
in
interest
income
on
the
statements
of
operations.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
There
were
no
outstanding
loans
or borrowings
as
of
June
30,
2020.
During
the period
ended
June
30,
2020, Accounts
lending
to
the
Facility
were
as
follows
(amounts
in
thousands):
During
the period
ended
June
30,
2020, Accounts
borrowing
from
the
Facility
were
as
follows
(amounts
in
thousands): 
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
$100
million,
collectively.
Borrowings
are
made
solely
to
facilitate
the
handling
of
unusual
and/or
unanticipated
short-term
cash
requirements.
Interest
is
charged
to
each
participant,
based
on
its
borrowings,
at
a
rate
equal
to
the
higher
of
the
Federal
Funds
Rate
or
the
One
Month
LIBOR
rate
plus
1.00%.
Additionally,
a
commitment
fee
is
charged
at
an
annual
rate
of
.15%
on
the
amount
of
the
line
of
credit
which
is
allocated
to
each
participating
fund
based
on
average
net
assets.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
The
Accounts
did
not
borrow
against
the
line
of
credit
during
the
period
ended
June
30,
2020
.
Contingent
Convertible
Securities.
Contingent
convertible
securities
(“
CoCos
”)
are
hybrid
debt
securities
that
may
convert
into
equity
or
have
their
principal
written
down
upon
the
occurrence
of
certain
“triggers.”
Although
a
contingent
convertible
security’s
equity
conversion
and
principal
write-down
features
are
tailored
to
the
particular
issuing
banking
institution
and
its
regulatory
requirements,
triggers
are
generally
linked
to
regulatory
capital
thresholds
or
regulatory
actions
calling
into
question
such
institution’s
continued
viability
as
a
going-
concern.
CoCos
may
have
no
stated
maturity
and
fully
discretionary
coupons,
which
means
coupon
payments
can
be
canceled
at
the
issuing
banking
institution’s
discretion
or
at
the
request
of
the
relevant
regulatory
authority
without
causing
a
default.
To
provide
the
appropriate
regulatory
capital
treatment,
CoCos
are
usually
issued
in
the
form
of
subordinated
debt
instruments
that
rank
junior
to
the
claims
of
holders
of
more
senior
obligations
in
the
event
of
the
issuer’s
liquidation.
If
CoCos
are
converted
into
equity
securities
due
to
a
trigger
event,
holders
will
be
further
subordinated.
The
future
value
of
CoCos
is
unpredictable
and
is
influenced
by
many
factors
including,
without
limitation:
the
creditworthiness
of
the
issuer
and/or
fluctuations
in
such
issuer’s
applicable
capital
ratios;
supply
and
demand
for
CoCos
;
general
market
conditions
and
available
liquidity;
and
economic,
financial
and
political
events
that
affect
the
issuer,
its
particular
market
or
the
financial
markets
in
general.
Due
to
these
features,
CoCos
may
have
substantially
greater
risk
than
other
securities
in
times
of
financial
stress.
Because
Average
Daily
Amount
Loaned
Weighted
Average
Annual
Interest
Rate
Core
Plus
Bond
Account
$
48
1.75
%
Diversified
International
Account
6
1.93
Equity
Income
Account
35
0.62
LargeCap
Growth
Account
I
8
1.51
Principal
Capital
Appreciation
Account
12
1.93
Short-Term
Income
Account
24
0.87
SmallCap
Account
1
2.14
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Diversified
International
Account
$
6
0.64
%
Government
&
High
Quality
Bond
Account
13
1.01
LargeCap
Growth
Account
I
24
0.96
MidCap
Account
68
1.76
Real
Estate
Securities
Account
13
1.40
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
24
of
the
uncertainty
regarding
whether
a
conversion
event
will
occur,
it
may
be
difficult
to
predict
when,
if
at
all,
a
contingent
convertible
security
will
be
converted
to
equity,
and
an
account may
suffer
losses
as
a
result.
If
the
trigger
level
is
breached,
the
issuer’s
decision
to
write
down,
write
off
or
convert
a
contingent
convertible
security
may
result
in
the
account's
complete
loss
on
an
investment
in
CoCos
with
no
chance
of
recovery
even
if
the
issuer
remains
in
existence. As
of
June
30,
2020,
Accounts
investing
in
CoCos
,
as
a
percentage
of
net
assets,
were
as
follows:
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,
as
stated
in
the
counterparties’
master
netting
agreements
(“Master
Netting
Agreements”),
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
Netting
Agreements
may
also
help
limit
counterparty
risk
by
specifying
collateral
posting
arrangements
at
pre-arranged
exposure
levels.
Under
the
Master
Netting
Agreements,
collateral
is
routinely
transferred
if
the
total
net
exposure
to
certain
transactions
governed
under
the
relevant
master
netting
agreement
with
a
counterparty
exceeds
a
specified
threshold.
Collateral
information
relating
to
securities
on
loan
is
included
in
the
securities
lending
note
to
financial
statements.
The
financial
instruments
that
are
subject
to
Master
Netting
Agreements
or
similar
agreements
may
include
right
of
setoff
provisions.
Derivative
instruments
include
provisions
to
setoff
positions
covered
under
the
agreements
with
the
same
counterparties
and
provisions
to
setoff
positions
outside
of
the
agreements
with
the
same
counterparties
in
the
event
of
default
by
one
of
the
parties.
Derivative
instruments
also
include
collateral
provisions.
Collateral
received
and
pledged
are
generally
settled
daily
with
each
counterparty.
As
of
June
30,
2020
,
no
Accounts
had
financial
assets
and
liabilities
subject
to
Master
Netting
Agreements
or
similar
agreements.
Cross
Trades. 
The
Accounts
may
engage
in
cross
trades.
A
cross
trade
is
a
purchase
or
sale
transaction
between
affiliated
portfolios
executed
directly
or
through
an
intermediary.
Mutual
funds
and
other
managed
portfolios
may
be
considered
affiliated
if
they
have
a
common
investment
advisor,
so
an
account may
be
considered
affiliated
with
any
portfolio
for
which
the
account's
sub-advisor
acts
as
an
investment
advisor.
Such
transactions
are
permissible
provided
that
the
conditions
of
Rule
17a-7
under
the
Investment
Company
Act
of
1940
are
satisfied. 
Deposits
with
Counterparty.
Cash
pledged
as
collateral
is
reflected
as
an
asset
on
the
statements
of
assets
and
liabilities
as
deposits
with
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
Customer
account
agreements
govern
cleared
derivatives
transactions
such
as
futures
contracts
and
certain
swap
agreements.
Such
transactions
require
posting
of
initial
margin
as
determined
by
each
relevant
clearing
agency
which
is
segregated
in
an
account
at
a
futures
commission
merchant
(“FCM”)
registered
with
the
Commodity
Futures
Trading
Commission.
International
Swaps
and
Derivatives
Association
(“ISDA”)
accounts
are
maintained
in
a
segregated
account
at
the
custodian
for
over-the-counter
("OTC")
derivatives.
Master
Securities
Forward
Transaction
Agreements
("MSFTA")
accounts
are
also
maintained
in
a
segregated
account
at
the
custodian
for
collateral
related
to
forward
currency
contracts
and
"to-be-announced"
("TBA")
securities.
Certain
of
the Accounts may
pledge
cash
to
a
broker
for
securities
sold
short.
As
of
June
30,
2020,
deposits
with
counterparty
were
as
follows
(amounts
in
thousands):
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 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.
Futures
contracts
are
marked
to
market
daily
at
the
closing
settlement
price
or
in
the
absence
of
such
a
price,
the
most
recent
quoted
bid
price.
If
there
are
no
quotations
available,
the
security
is
valued
at
the
last
available
Core
Plus
Bond
Account
1.02
%
FCM
(Futures
and
Cleared
Swaps)
ISDA
(OTC
Derivatives)
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Total
Deposits
with
Counterparty
Core
Plus
Bond
Account
$
—
$
1
$
7
$
8
Government
&
High
Quality
Bond
Account
209
—
—
209
LargeCap
Growth
Account
I
336
—
—
336
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
25
closing
settlement
price.
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
total
distributable
earnings
(accumulated
loss)
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. 
Inflation-Indexed
Bonds.
Certain
of
the
Accounts
may
invest
in
inflation-indexed
bonds.
Inflation-indexed
bonds
are
fixed-income
securities
whose
principal
value
is
periodically
adjusted
to
the
rate
of
inflation.
The
interest
rate
on
these
bonds
is
generally
fixed
at
issuance
at
a
rate
lower
than
typical
bonds.
Over
the
life
of
an
inflation-indexed
bond,
however,
interest
will
be
paid
based
on
a
principal
value,
which
is
adjusted
for
inflation.
Any
increase
or
decrease
in
the
principal
amount
of
an
inflation-indexed
bond
will
be
included
as
interest
income
on
the
statements
of
operations,
even
though
the
Accounts
would
not
receive
the
principal
until
maturity.
Mortgage
Dollar
Rolls.
Certain
of
the
Accounts
have
entered
into
mortgage-dollar-roll
transactions
on TBA
securities,
in
which
the
Accounts
sell
mortgage-backed
securities
and
simultaneously
agree
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
Accounts
forgo
principal
and
interest
paid
on
the
securities
and
are
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
Accounts
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 Fund's
policy
that
the
counterparties’
custodian
takes
possession
of
the
underlying
collateral
securities.
The
fair
value
of
the
collateral
is
at
all
times
at
least
equal
to
the
total
amount
of
the
repurchase
obligation.
In
the
event
of
default
on
the
obligation
to
repurchase,
the
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
domestic
and
foreign
fixed
income
loaned
securities
and
105%
of
the
market
value
of
the
foreign
equity
loaned
securities. The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
business
of
the
Accounts
and
any
additional
required
collateral
is
delivered
to
the
Accounts
on
the
next
business
day.
The
cash
collateral
received
is
usually
invested
in
a
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
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
26
income,
net
of
related
fees, is
shown
on
the
statements
of
operations.
As
of
June
30,
2020,
the
Accounts
had
securities
on
loan
as
follows
(amounts
in
thousands):  
Senior
Floating
Rate
Interests.
The
Accounts
may
invest
in
senior
floating
rate
interests
(bank
loans).
Senior
floating
rate
interests
typically
hold
the
most
senior
position
in
the
capital
structure
of
a
business
entity
(the
“Borrower”),
are
secured
by
specific
collateral
and
have
a
claim
on
the
assets
and/or
stock
of
the
Borrower
that
is
senior
to
that
held
by
subordinated
debtholders
and
stockholders
of
the
Borrower.
Senior
floating
rate
interests
are
typically
structured
and
administered
by
a
financial
institution
that
acts
as
the
agent
of
the
lenders
participating
in
the
senior
floating
rate
interest.
Borrowers
of
senior
floating
rate
interests
are
typically
rated
below-investment-grade,
which
means
they
are
more
likely
to
default
than
investment-grade
loans.
A
default
could
lead
to
non-payment
of
income
which
would
result
in
a
reduction
of
income
to
the
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
LIBOR
rate.
Senior
floating
rate
interests
generally
are
subject
to
mandatory
and/or
optional
prepayment.
Because
of
these
mandatory
prepayment
conditions
and
because
there
may
be
significant
economic
incentives
for
the
Borrower
to
repay,
prepayments
of
senior
floating
rate
interests
may
occur.
As
a
result,
the
actual
remaining
maturity
of
senior
floating
rate
interests
may
be
substantially
less
than
stated
maturities
shown
in
the
schedules
of
investments.
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.
Commitments
are
marked
to
market
daily
and
the
unrealized
gain
or
loss
is
shown
as
a
separate
line
item
called
unrealized
gain
or
loss
on
commitments
on
the
statements
of
assets
and
liabilities,
as
applicable.
As
of
June
30,
2020
,
the
commitments
were
as
follows
(amounts
in
thousands):
Swap
Agreements.
Core
Plus
Bond Account
entered
into
swap
agreements
during
the
period.
Swap
agreements
are
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.
In
connection
with
these
agreements,
securities
may
be
identified
as
collateral
in
accordance
with
the
terms
of
the
respective
swap
agreements
to
provide
assets
of
value
and
recourse
in
the
event
of
default
or
bankruptcy/insolvency.
Swap
agreements
are
valued
through
a
pricing
service
or
using
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
Centrally
cleared
swaps
are
valued
using
the
last
traded
price
from
the
preliminary
trading
exchange.
OTC
swaps
are
modeled
taking
into
account
the
counterparties’
creditworthiness
and
using
a
series
of
techniques,
including
simulation
models.
Changes
in
value
are
recorded
as
unrealized
gain
or
loss.
These
unrealized
gains
or
losses
are
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
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.
Market
Value
Collateral
Value
Core
Plus
Bond
Account
$
1,080
$
1,123
Diversified
International
Account
1,951
3,079
LargeCap
Growth
Account
I
2,104
2,132
MidCap
Account
199
197
Short-Term
Income
Account
1,547
1,594
SmallCap
Account
5,596
5,635
Unfunded
Loan
Commitment
Unrealized
gain/loss
Core
Plus
Bond
Account
$
5
$
–
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
27
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.
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,
which
is
less
expensive
than
it
would
be
to
buy
many
credit
default
swaps
to
achieve
a
similar
effect.
Credit
default
swaps
on
indices
are
benchmarks
for
protecting
investors
owning
bonds
against
default,
and
traders
use
them
to
speculate
on
changes
in
credit
quality.
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,
2020
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.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
28
Interest
rate
swaps
involve
the
commitment
to
exchange
fixed
or
floating
rate
cash
flows
based
on
changes
in
the
value
of
a
specific
reference
rate.
Certain
collateral
amounts
relate
to
exchange
cleared
swaps
which
are
not
subject
to
master
netting
agreements
with
counterparties.
To
Be
Announced
Securities.
The Accounts
may
trade
portfolio
securities
on
a
TBA
or
when-issued
basis.
In
a
TBA
or
when-issued
transaction,
the Accounts
commit
to
purchase
or
sell
securities
for
which
all
specific
information
is
not
known
at
the
time
of
the
trade.
Securities
purchased
on
a
TBA
or
when-issued
basis
are
not
settled
until
they
are
delivered
to
the
Accounts,
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
of
the
SAM
Portfolios
(singly,
a
“fund
of
funds”)
directly
corresponds
to
the
performance
and
risks
of
the
Underlying
Funds
in
which
the
fund
of
funds
invests.
By
investing
in
many
Underlying
Funds,
a
fund
of
funds
has
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
Fund,
Principal
Funds,
Inc.,
and
some
of
the
Underlying
Funds.
The
Manager
is
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.
Shareholder
reports
for
the
Underlying
Funds
can
be
found
online
at
www.principalfunds.com.
As
of
June
30,
2020
,
series
of
the
Fund
owned
the
following
percentages,
in
the
aggregate,
of
the
outstanding
shares
of
the
Accounts
listed
below:
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 U.S.
Government)
include
the FNMA
and
the
Federal
Home
Loan
Mortgage
Corporation
(“FHLMC”).
The
FNMA
is
a
government
sponsored
corporation,
the
common
stock
of
which
is
owned
entirely
by
private
stockholders.
The
FNMA
purchases
conventional
residential
mortgages
from
a
list
of
approved
seller/servicers
which
include
state
and
federally
chartered
savings
and
loan
associations,
mutual
savings
banks,
commercial
banks,
credit
unions,
and
mortgage
bankers.
Pass-through
securities
issued
by
the
FNMA
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
the
FNMA,
but
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
The
FHLMC
issues
participation
certificates,
which
are
pass-through
securities,
each
representing
an
undivided
interest
in
a
pool
of
residential
mortgages.
The
FHLMC
guarantees
the
timely
payment
of
interest
and
ultimate
collection
of
principal,
but
participation
certificates
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government. 
Account
Total
Percentage
of
Outstanding
Shares
Owned
Equity
Income
Account
31.98%
Government
&
High
Quality
Bond
Account
39.30
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
29
Derivatives.
The
following
tables
provide
information
about
where
in
the
statements
of
assets
and
liabilities
and
statements
of
operations
information
about
derivatives
can
be
found
(amounts
in
thousands):
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
changing
cash
balances.
Long
and
short
U.S.
Treasury
futures
contracts
are
used
to
obtain
interest
rate
exposure
in
order
to
manage
duration
of
Core
Plus
Bond
Account
and
Government
&
High
Quality
Bond
Account.
The
notional
values
of
the
futures
contracts
will
vary
in
accordance
with
changing
duration
of
these
funds.
The
following
table
includes
a
summary
of
the
average
quarterly
outstanding
notional
by
derivative
instrument
type
for
the period
ended
June
30,
2020 (amounts
in
thousands):
Asset
Derivatives
June
30,
2020
Liability
Derivatives
June
30,
2020
Derivatives
not
accounted
for
as
hedging
instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Core
Plus
Bond
Account
Credit
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
—
Payables,
Total
distributable
earnings
(accumulated
loss)
$
149
*
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
18
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
10
*
Total
$
18
*
$
159
*
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
—
Payables,
Total
distributable
earnings
(accumulated
loss)
$
29
*
LargeCap
Growth
Account
I
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
33
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
*
Includes
cumulative
unrealized
appreciation/depreciation
of
exchange
traded
swaps
and
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.
Derivatives
not
accounted
for
as
hedging
instruments
Location
of
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Realized
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Change
in
Unrealized
Appreciation/
(Depreciation)
of
Derivatives
Recognized
in
Statement
of  Operations
Core
Plus
Bond
Account
Credit
contracts
Net
realized
gain
(loss)
from
Swap
agreements/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Swap
agreements
$
2,024
$
(149)
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
525
$
70
Total
$
2,549
$
(79)
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(813)
$
(214)
LargeCap
Growth
Account
I
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
389
$
22
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps
–
Buy
Protection
$
7,699
Interest
Rate
Contracts
Futures
-
Long
6,141
Futures
-
Short
10,332
Government
&
High
Quality
Bond
Account
Interest
Rate
Contracts
Futures
-
Short
9,990
LargeCap
Growth
Account
I
Equity
Contracts
Futures
-
Long
3,194
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
30
4.
Fair
Valuation
Fair
value
is
defined
as
the
price
that
the Accounts
would
receive
upon
selling
a
security
or
transferring
a
liability in
a
timely
transaction
to
an
independent
buyer
in
the
principal
or
most
advantageous
market
of
the
security
at
the
measurement
date.
In
determining
fair
value,
the Accounts
may
use
one
or
more
of
the
following
approaches:
market,
income
and/or
cost.
A
hierarchy
for
inputs
is
used
in
measuring
fair
value
that
maximizes
the
use
of
observable
inputs
and
minimizes
the
use
of
unobservable
inputs
by
requiring
that
the
most
observable
inputs
be
used
when
available.
Observable
inputs
are
inputs
that
reflect
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
Accounts.
Unobservable
inputs
are
inputs
that
reflect
the
account's
own
estimates
about
the
estimates
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
the
best
information
available
in
the
circumstances.
The
three-tier
hierarchy
of
inputs
is
summarized
in
the
three
broad
levels
listed
below.
●
Level
1
–
Quoted
prices
are
available
in
active
markets
for
identical
securities
as
of
the
reporting
date.
Investments
which
are
generally
included
in
this
category
include listed
equities
and
listed
derivatives.
●
Level
2
–
Other
significant
observable
inputs
(including
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Investments
which
are
generally
included
in
this
category
include
certain
foreign
equities,
corporate
bonds,
senior
floating
rate
interests,
municipal
bonds,
and
U.S.
Government
and
Government
Agency
Obligations.
●
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
common
stocks,
corporate
bonds,
mortgage
backed
securities
or
senior
floating
rate
interests.
The
availability
of
observable
inputs
can
vary
from
security
to
security
and
is
affected
by
a
wide
variety
of
factors,
including,
for
example,
the
type
of
security,
whether
the
security
is
new
and
not
yet
established
in
the
market
place,
and
other
characteristics
particular
to
the
transaction.
To
the
extent
that
valuation
is
based
on
models
or
inputs
that
are
less
observable
or
unobservable
in
the
market,
the
determination
of
fair
value
requires
more
judgment.
Accordingly,
the
degree
of
judgment
exercised
by
the
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
Accounts'
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,
when
available. 
Investments
which
are
included
in
the
Level
3
category
may
be
valued
using
indicative
quoted
prices
from
brokers
and
dealers
participating
in
the
market
for
these
investments.
These
investments
are
classified
as
Level
3
investments
due
to
the
lack
of
market
transparency
and
market
corroboration
to
support
these
quoted
prices.
Valuation
models
may
be
used
as
the
pricing
source
for
other
investments
classified
as
Level
3.
Valuation
models
rely
on
one
or
more
significant
unobservable
inputs
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.
Benchmark
pricing
procedures
set
the
base
price
of
a
security
based
on
current
market
data.
The
base
price
may
be
a
broker-
dealer
quote,
transaction
price,
or
internal
value
based
on
relevant
market
data.
The
fair
values
of
these
securities
are
dependent
on
economic,
political,
and
other
considerations.
The
values
of
such
securities
may
be
affected
by
significant
changes
in
the
economic
conditions,
changes
in
government
policies,
and
other
factors
(e.g.,
natural
disasters,
accidents,
conflicts,
etc.).
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
The
Manager
has
established
a
valuation
committee
(“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
at
least
monthly
and
reports
directly
to
the
Board
of
Directors.
A
pricing
group
(the
“Pricing
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
31
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
approaches
established
for
each
asset
class.
The
Pricing
Group
will
consider
all
appropriate
information
available
when
determining
fair
valuation.
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.
The
following
is
a
summary
of
the
inputs
used
as
of June
30,
2020
in
valuing
the
Accounts'
securities
carried
at
value
(amounts
in
thousands):
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Core
Plus
Bond
Account
Bonds*
$
—
$
159,577
$
23
$
159,600
Investment
Companies
19,647
—
—
19,647
Senior
Floating
Rate
Interests*
—
2,078
—
2,078
U.S.
Government
&
Government
Agency
Obligations*
—
107,149
—
107,149
Total
investments
in
securities
$
19,647
$
268,804
$
23
$
288,474
Assets
Interest
Rate
Contracts
Futures**
18
—
—
18
Liabilities
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps**
—
(149)
—
(149)
Interest
Rate
Contracts
Futures**
(10)
—
—
(10)
Diversified
International
Account
Common
Stocks
Basic
Materials
3,527
6,965
—
10,492
Communications
8,635
17,981
—
26,616
Consumer,
Cyclical
4,669
33,118
—
37,787
Consumer,
Non-cyclical
2,707
37,402
—
40,109
Energy
5,348
6,761
—
12,109
Financial
10,040
33,919
—
43,959
Industrial
2,250
22,413
—
24,663
Technology
1,826
27,095
—
28,921
Utilities
536
4,923
—
5,459
Investment
Companies
3,702
—
—
3,702
Preferred
Stocks
1,021
—
—
1,021
Total
investments
in
securities
$
44,261
$
190,577
$
—
$
234,838
Equity
Income
Account
Common
Stocks*
636,748
—
—
636,748
Investment
Companies
13,745
—
—
13,745
Total
investments
in
securities
$
650,493
$
—
$
—
$
650,493
Government
&
High
Quality
Bond
Account
Bonds*
—
50,120
—
50,120
Investment
Companies
20,544
—
—
20,544
U.S.
Government
&
Government
Agency
Obligations*
—
181,861
—
181,861
Total
investments
in
securities
$
20,544
$
231,981
$
—
$
252,525
Liabilities
Interest
Rate
Contracts
Futures**
(29)
—
—
(29)
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
32
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
LargeCap
Growth
Account
I
Common
Stocks
Basic
Materials
$
8,305
$
—
$
—
$
8,305
Communications
118,451
—
—
118,451
Consumer,
Cyclical
35,458
—
—
35,458
Consumer,
Non-cyclical
149,529
—
—
149,529
Energy
774
—
—
774
Financial
35,274
—
—
35,274
Industrial
32,047
—
—
32,047
Technology
143,091
20
90
143,201
Utilities
3,559
—
—
3,559
Convertible
Preferred
Stocks
Communications
—
—
330
330
Consumer,
Cyclical
—
214
—
214
Investment
Companies
17,602
—
—
17,602
Preferred
Stocks
Communications
—
87
119
206
Consumer,
Cyclical
—
—
657
657
Technology
—
—
246
246
Total
investments
in
securities
$
544,090
$
321
$
1,442
$
545,853
Assets
Equity
Contracts
Futures**
33
—
—
$
33
MidCap
Account
Common
Stocks
Basic
Materials
3,666
—
—
3,666
Communications
57,461
—
—
57,461
Consumer,
Cyclical
120,172
—
—
120,172
Consumer,
Non-cyclical
65,106
1,205
—
66,311
Financial
135,573
—
—
135,573
Industrial
70,698
—
—
70,698
Technology
75,208
—
—
75,208
Utilities
11,983
—
—
11,983
Investment
Companies
1,120
—
—
1,120
Total
investments
in
securities
$
540,987
$
1,205
$
—
$
542,192
Principal
Capital
Appreciation
Account
Common
Stocks*
141,675
—
—
141,675
Investment
Companies
2,159
—
—
2,159
Total
investments
in
securities
$
143,834
$
—
$
—
$
143,834
Real
Estate
Securities
Account
Common
Stocks*
130,434
—
—
130,434
Investment
Companies
42
—
—
42
Total
investments
in
securities
$
130,476
$
—
$
—
$
130,476
SAM
Balanced
Portfolio
Investment
Companies
633,815
—
—
633,815
Total
investments
in
securities
$
633,815
$
—
$
—
$
633,815
SAM
Conservative
Balanced
Portfolio
Investment
Companies
176,871
—
—
176,871
Total
investments
in
securities
$
176,871
$
—
$
—
$
176,871
SAM
Conservative
Growth
Portfolio
Investment
Companies
328,557
—
—
328,557
Total
investments
in
securities
$
328,557
$
—
$
—
$
328,557
SAM
Flexible
Income
Portfolio
Investment
Companies
173,850
—
—
173,850
Total
investments
in
securities
$
173,850
$
—
$
—
$
173,850
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
33
*For
additional
detail
regarding
sector
classifications,
please
see
the
schedules
of
investments.
**Futures
are
presented
at
the
unrealized
appreciation/(depreciation)
of
the
instrument.
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.
5.
Management
Agreement
and
Transactions
with
Affiliates
Management
Services.
The
Accounts
have
agreed
to
pay
investment
advisory
and
management
fees
to
the
Manager
computed
at
an
annual
percentage
rate
of
each
account’s
average
daily
net
assets.
A
portion
of
the
management
fee
is
paid
by
the
Manager
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:
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
SAM
Strategic
Growth
Portfolio
Investment
Companies
$
289,027
$
—
$
—
$
289,027
Total
investments
in
securities
$
289,027
$
—
$
—
$
289,027
Short-Term
Income
Account
Bonds*
—
120,948
—
120,948
Investment
Companies
3,759
—
—
3,759
U.S.
Government
&
Government
Agency
Obligations*
—
13,476
—
13,476
Total
investments
in
securities
$
3,759
$
134,424
$
—
$
138,183
SmallCap
Account
Common
Stocks*
164,084
—
—
164,084
Investment
Companies
7,333
—
—
7,333
Total
investments
in
securities
$
171,417
$
—
$
—
$
171,417
Net
Assets
of
Account
(in
millions)
First
$100
Next
$100
Next
$100
Next
$100
Thereafter
Core
Plus
Bond
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
Real
Estate
Securities
Account
.83
.78
.73
.70
.68
SmallCap
Account
.85
.80
.75
.70
.65
Net
Assets
of
Account
(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
(in
billions)
First
$2
Over
$2
Government
&
High
Quality
Bond
Account
.50%
.45%
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
34
The
Manager
has
contractually
agreed
to
limit
certain
of
the
Accounts'
management
and
investment
advisory
fees.
The
expense
limit
will
reduce
the account's
management
and
investment
advisory
fees
by
the
following
amounts:
The
Manager
has
contractually
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to account
investments,
acquired
fund
fees
and
expenses,
and
other
extraordinary
expenses)
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:
The
Manager
has
contractually
agreed
to
reduce
Short-Term
Income
Account’s
expenses
by
.01%
through
the
period
ended
April
30,
2021.
Amounts
owed
to
the Accounts
under
the
terms
of
the
expense
limitation
agreements
are
reflected
in
the
statements
of
assets
and
liabilities
as
expense
reimbursement
from
Manager
and
are
settled
periodically. 
Distribution
Fees.
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.
(an
affiliate
of
the
Manager),
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
distribution
fee
rate
is
.25%.
Chief
Compliance
Officer
Expenses.
The Accounts
pay
certain
expenses
associated
with
the
Chief
Compliance
Officer
(“CCO”).
This
expense
is
allocated
based
on
the
relative
net
assets
of
each account
and
is
shown
on
the
statements
of
operations.
Affiliated
Ownership.
At
June
30,
2020,
the
Manager,
Principal National
Life
Insurance
Company, 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):
6.
Investment
Transactions
For
the period ended
June
30,
2020,
the
cost
of
investment
securities
purchased
and
proceeds
from
investment
securities
sold
(not
including
short-term
investments,
return
of
capital, and
U.S.
government
securities)
by
the Accounts
were
as
follows
(amounts
in
thousands):
Period
from
January
1,
2020
through
June
30,
2020
Expiration
LargeCap
Growth
Account
I
.016%
April
30,
2021
Period
from
January
1,
2020
through
June
30,
2020
Class
1
Class
2
Expiration
LargeCap
Growth
Account
I
.69%
N/A
April
30,
2021
Class
1
Class
2
Core
Plus
Bond
Account
20,827
N/A
Diversified
International
Account
16,052
N/A
Equity
Income
Account
13,222
279
Government
&
High
Quality
Bond
Account
14,218
N/A
LargeCap
Growth
Account
I
12,794
N/A
MidCap
Account
8,976
11
Principal
Capital
Appreciation
Account
3,749
191
Real
Estate
Securities
Account
6,728
316
SAM
Balanced
Portfolio
31,866
1,551
SAM
Conservative
Balanced
Portfolio
12,405
789
SAM
Conservative
Growth
Portfolio
9,033
849
SAM
Flexible
Income
Portfolio
10,972
1,525
SAM
Strategic
Growth
Portfolio
7,174
536
Short-Term
Income
Account
52,012
N/A
SmallCap
Account
11,288
187
Purchases
Sales
Core
Plus
Bond
Account
$
196,900
$
169,359
Diversified
International
Account
57,945
64,681
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
35
For
the period
ended June
30,
2020,
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
in
thousands):
7.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the periods
ended June
30,
2020 and
December
31,
2019 were
as
follows
(amounts
in
thousands):
*The
Accounts
designate
these
distributions
as
long-term
capital
gain
dividends
per
Internal
Revenue
Code
Sec.
852
(b)(3)(C)
in
the
20-percent
group
(which
may
be
taxed
at
a
20-percent
rate,
a
15-percent
rate
or
a
0-percent
rate,
depending
on
the
shareholder’s
taxable
income).
^Unrecaptured
Section
1250
gains
are
gains
from
the
sale
of
depreciable
property
that
are
subject
to
a
maximum
tax
rate
of
25%.
Certain
Accounts
may
also
utilize
earnings
and
profits
distributed
to
shareholders
on
redemptions
of
shares
as
part
of
the
dividends
paid
deduction.
For
U.S.
federal
income
tax
purposes,
short-term
capital
gain
distributions
are
considered
ordinary
income
distributions.
Purchases
Sales
Equity
Income
Account
$
82,587
$
83,291
Government
&
High
Quality
Bond
Account
33,564
58,453
LargeCap
Growth
Account
I
111,004
122,953
MidCap
Account
52,058
86,951
Principal
Capital
Appreciation
Account
34,889
41,250
Real
Estate
Securities
Account
30,927
36,844
SAM
Balanced
Portfolio
5,843
46,303
SAM
Conservative
Balanced
Portfolio
6,718
15,783
SAM
Conservative
Growth
Portfolio
6,727
17,110
SAM
Flexible
Income
Portfolio
7,457
20,092
SAM
Strategic
Growth
Portfolio
8,388
15,984
Short-Term
Income
Account
31,527
32,881
SmallCap
Account
27,839
31,373
Purchases
Sales
Core
Plus
Bond
Account
$
68,105
$
87,455
Government
&
High
Quality
Bond
Account
24,451
15,201
Short-Term
Income
Account
19,201
15,189
Ordinary
Income
Long-Term
Capital
Gain
Section
1250
Gain
2020
2019
2020
2019*
2020
2019^
Core
Plus
Bond
Account
$
—
$
10,172
$
—
$
—
$
—
$
—
Diversified
International
Account
—
4,159
—
12,521
—
—
Equity
Income
Account
—
16,637
—
16,586
—
—
Government
&
High
Quality
Bond
Account
—
6,457
—
—
—
—
LargeCap
Growth
Account
I
—
230
—
34,567
—
—
MidCap
Account
—
1,707
—
79,894
—
—
Principal
Capital
Appreciation
Account
—
2,602
—
13,127
—
—
Real
Estate
Securities
Account
—
3,501
—
9,349
—
424
SAM
Balanced
Portfolio
—
17,364
—
24,099
—
—
SAM
Conservative
Balanced
Portfolio
—
5,316
—
3,638
—
—
SAM
Conservative
Growth
Portfolio
—
5,992
—
15,423
—
—
SAM
Flexible
Income
Portfolio
—
6,506
—
5,219
—
—
SAM
Strategic
Growth
Portfolio
—
4,270
—
15,098
—
—
Short-Term
Income
Account
—
3,392
—
—
—
—
SmallCap
Account
—
6,293
—
23,429
—
—
6.
Investment
Transactions
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
36
Distributable
Earnings.
As
of December
31,
2019,
the
components
of
total
distributable
earnings
(accumulated
loss)
on
a
federal
tax
basis
were
as
follows
(amounts
in
thousands):
*Represents
book-to-tax
accounting
differences.
^Undistributed
Ordinary
Income
reported
includes
$257
of
undistributed
Section
1250
Capital
Gains.
Capital
Loss
Carryforwards.
For
federal
income
tax
purposes,
capital
loss
carryforwards
are
losses
that
can
be
used
to
offset
future
capital
gains
of
the
Accounts.
As
of December
31,
2019,
the Accounts had
approximate
net
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
Capital
losses
generated
in
taxable
years
beginning
after
the
enactment
date
of
the
Regulated
Investment
Company
Modernization
Act
of
2010
on
December
22,
2010,
will
be
carried
forward
with
no
expiration
and
with
the
character
of
the
loss
retained.
For
the
year
ended
December
31,
2019,
the
following
accounts
had
utilized
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
Late-Year
Losses.
A
regulated
investment
company
may
elect
to
treat
any
portion
of
its
qualified
late-year
loss
as
arising
on
the
first
day
of
the
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,
2019
,
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
U.S.
GAAP
and
tax
accounting.
Adjustments
are
made
to
reflect
the
impact
these
items
have
on
current
and
future
distributions
to
shareholders.
Therefore,
the
source
of
the Accounts'
distributions
may
be
shown
in
the
accompanying
statements
of
changes
in
net
assets
as
from
net
investment
income
and net
realized
gain
on
investments
or
from
tax
return
of
capital
depending
on
the
type
of
book
and
tax
differences
that
exist.
For
the
year
ended
December
31,
2019,
the
Accounts
recorded
reclassifications
as
follows
(amounts
in
thousands):
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences
*
Total
Accumulated
Earnings
(Deficit)
Core
Plus
Bond
Account
$
9,502
$
—
$
(3,611
)
$
5,284
$
10
$
11,185
Diversified
International
Account
6,492
—
(272
)
47,862
—
54,082
Equity
Income
Account
16,244
19,472
—
326,401
—
362,117
Government
&
High
Quality
Bond
Account
5,986
—
(9,021
)
1,107
(32
)
(1,960
)
LargeCap
Growth
Account
I
3,033
29,010
—
167,090
—
199,133
MidCap
Account
3,538
53,798
—
231,016
—
288,352
Principal
Capital
Appreciation
Account
2,352
6,711
—
70,749
—
79,812
Real
Estate
Securities
Account
2,828^
7,881
—
44,053
—
54,762
SAM
Balanced
Portfolio
14,661
19,995
—
132,710
—
167,366
SAM
Conservative
Balanced
Portfolio
4,482
3,128
—
22,888
—
30,498
SAM
Conservative
Growth
Portfolio
6,331
5,240
—
68,824
—
80,395
SAM
Flexible
Income
Portfolio
5,110
3,760
—
15,026
—
23,896
SAM
Strategic
Growth
Portfolio
5,533
7,048
—
49,410
—
61,991
Short-Term
Income
Account
3,165
—
(656
)
1,600
(6
)
4,103
SmallCap
Account
999
12,319
—
25,091
—
38,409
Short-Term
Long-Term
Total
Core
Plus
Bond
Account
$
157
$
3,454
$
3,611
Diversified
International
Account
272
—
272
Government
&
High
Quality
Bond
Account
515
8,506
9,021
Short-Term
Income
Account
—
656
656
Utilized
Core
Plus
Bond
Account
$
3,194
SAM
Flexible
Income
Portfolio
4
Short-Term
Income
Account
333
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Equity
Income
Account
$
(4,802
)
$
4,802
LargeCap
Growth
Account
I
(6,036
)
6,036
7.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
37
Federal
Income
Tax
Basis.
 As
of June
30,
2020, the
net
federal
income
tax
unrealized
appreciation
(depreciation)
and
federal
tax
cost
of
investments
held
by
the
Accounts
were
as
follows
(amounts
in
thousands):
8.
Other
Matters
As
of
the
date
these
financial
statements
were
available
to
be
issued,
the
outbreak
of
the
novel
coronavirus
(“COVID-19”)
in
many
countries
continues
to
adversely
impact
global
commercial
activity
and
has
contributed
to
significant
volatility
in
financial
markets.
The
global
impact
of
the
outbreak
has
been
rapidly
evolving
and
many
countries
have
reacted
by
instituting
quarantines
and
restriction
on
travel.
Such
measures,
as
well
as
the
general
uncertainty
surrounding
the
dangers
and
impact
of
COVID-19,
are
creating
significant
disruption
in
supply
chains
and
economic
activity.
As
COVID-19
continues
to
spread,
the
potential
impacts,
including
a
global,
regional
or
other
economic
recession,
are
increasingly
difficult
to
assess.
These
events,
or
fear
of
such
an
event,
present
material
uncertainty
and
risk
with
respect
to
the Accounts'
performance
and
financial
results.
9.
Subsequent
Events
Management
has
evaluated
events
and
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
that
would
merit
recognition
or
disclosure
in
the
financial
statements. 
There
were
no
items
requiring
adjustment
of
the
financial
statements
or
additional
disclosure.
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
MidCap
Account
$
(11,336
)
$
11,336
Principal
Capital
Appreciation
Account
(2,189
)
2,189
Real
Estate
Securities
Account
(2,323
)
2,323
SAM
Flexible
Income
Portfolio
(4
)
4
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Core
Plus
Bond
Account
$
16,082
$
(5,339)
$
10,743
$
277,590
Diversified
International
Account
44,170
(14,386)
29,784
205,054
Equity
Income
Account
240,366
(31,500)
208,866
441,627
Government
&
High
Quality
Bond
Account
8,812
(3,262)
5,550
246,946
LargeCap
Growth
Account
I
199,757
(7,402)
192,355
353,531
MidCap
Account
191,045
(17,586)
173,459
368,733
Principal
Capital
Appreciation
Account
66,983
(1,945)
65,038
78,796
Real
Estate
Securities
Account
27,505
(10,137)
17,368
113,108
SAM
Balanced
Portfolio
105,249
(6,224)
99,025
534,790
SAM
Conservative
Balanced
Portfolio
19,865
(3,045)
16,820
160,051
SAM
Conservative
Growth
Portfolio
52,138
(5,189)
46,949
281,608
SAM
Flexible
Income
Portfolio
13,912
(3,789)
10,123
163,727
SAM
Strategic
Growth
Portfolio
34,908
(6,830)
28,078
260,949
Short-Term
Income
Account
3,700
(469)
3,231
134,952
SmallCap
Account
35,073
(30,633)
4,440
166,977
7.
Federal
Tax
Information
(continued)
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
38
INVESTMENT
COMPANIES
-
7.54%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
4.36%
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
22,000‌
$
2,959‌
SPDR
Bloomberg
Barclays
High
Yield
Bond
ETF
83,000‌
8,396‌
$
11,355‌
Money
Market
Funds
-
3.18%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
1,122,614‌
1,123‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
7,168,780‌
7,169‌
$
8,292‌
TOTAL
INVESTMENT
COMPANIES
$
19,647‌
BONDS
-
61.23%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
1.69%
Boeing
Co/The
2.70%,
02/01/2027
$
540‌
$
527‌
2.80%,
03/01/2024
300‌
304‌
3.10%,
05/01/2026
190‌
194‌
3.20%,
03/01/2029
200‌
198‌
3.50%,
03/01/2039
65‌
58‌
3.63%,
03/01/2048
155‌
136‌
3.75%,
02/01/2050
150‌
135‌
3.90%,
05/01/2049
75‌
69‌
4.88%,
05/01/2025
380‌
414‌
Lockheed
Martin
Corp
1.85%,
06/15/2030
110‌
113‌
2.90%,
03/01/2025
360‌
396‌
4.09%,
09/15/2052
60‌
78‌
Raytheon
Technologies
Corp
3.50%,
03/15/2027
(e)
215‌
242‌
3.95%,
08/16/2025
390‌
444‌
4.45%,
11/16/2038
115‌
141‌
4.50%,
06/01/2042
205‌
256‌
5.40%,
05/01/2035
130‌
176‌
SSL
Robotics
LLC
9.75%,
12/31/2023
(e)
135‌
144‌
TransDigm
Inc
6.25%,
03/15/2026
(e)
75‌
75‌
7.50%,
03/15/2027
140‌
134‌
Triumph
Group
Inc
5.25%,
06/01/2022
55‌
47‌
6.25%,
09/15/2024
(e)
20‌
17‌
7.75%,
08/15/2025
(f)
160‌
120‌
$
4,418‌
Agriculture
-
0.67%
Altria
Group
Inc
2.35%,
05/06/2025
155‌
163‌
4.50%,
05/02/2043
5‌
6‌
5.80%,
02/14/2039
85‌
105‌
5.95%,
02/14/2049
35‌
46‌
BAT
Capital
Corp
2.76%,
08/15/2022
395‌
409‌
3.22%,
08/15/2024
170‌
182‌
3.56%,
08/15/2027
220‌
237‌
4.54%,
08/15/2047
120‌
130‌
JBS
Investments
II
GmbH
7.00%,
01/15/2026
(e)
200‌
210‌
Reynolds
American
Inc
5.70%,
08/15/2035
165‌
203‌
5.85%,
08/15/2045
45‌
55‌
$
1,746‌
Airlines
-
0.89%
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95%,
07/15/2024
521‌
422‌
American
Airlines
2014-1
Class
A
Pass
Through
Trust
3.70%,
04/01/2028
116‌
98‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Airlines
(continued)
American
Airlines
2015-1
Class
A
Pass
Through
Trust
3.38%,
11/01/2028
$
23‌
$
19‌
American
Airlines
2016-3
Class
A
Pass
Through
Trust
3.25%,
04/15/2030
195‌
159‌
Continental
Airlines
2007-1
Class
A
Pass
Through
Trust
5.98%,
10/19/2023
85‌
80‌
Continental
Airlines
2012-1
Class
A
Pass
Through
Trust
4.15%,
10/11/2025
305‌
286‌
JetBlue
2019-1
Class
AA
Pass
Through
Trust
2.75%,
11/15/2033
133‌
126‌
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd
6.50%,
06/20/2027
(g)
45‌
45‌
Southwest
Airlines
Co
4.75%,
05/04/2023
195‌
200‌
5.25%,
05/04/2025
125‌
132‌
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
224‌
204‌
United
Airlines
2018-1
Class
A
Pass
Through
Trust
3.70%,
09/01/2031
191‌
153‌
United
Airlines
2018-1
Class
AA
Pass
Through
Trust
3.50%,
09/01/2031
187‌
175‌
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
160‌
144‌
US
Airways
2013-1
Class
A
Pass
Through
Trust
3.95%,
05/15/2027
93‌
77‌
$
2,320‌
Automobile
Asset
Backed
Securities
-
2.51%
AmeriCredit
Automobile
Receivables
Trust
2020-1
0.54%,
03/20/2023
2,500‌
2,499‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
Carmax
Auto
Owner
Trust
2018-4
0.38%,
02/15/2022
395‌
395‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
Drive
Auto
Receivables
Trust
2020-2
0.72%,
07/17/2023
500‌
500‌
1.00
x
1
Month
USD
LIBOR
+
0.53%
Ford
Credit
Auto
Lease
Trust
2019-B
2.28%,
02/15/2022
274‌
275‌
Mercedes-Benz
Auto
Lease
Trust
2019-A
3.10%,
11/15/2021
325‌
328‌
Santander
Retail
Auto
Lease
Trust
2019-A
2.72%,
01/20/2022
(e)
1,103‌
1,113‌
Tesla
Auto
Lease
Trust
2019-A
2.13%,
04/20/2022
(e)
915‌
925‌
World
Omni
Auto
Receivables
Trust
1.05%,
03/15/2021
381‌
382‌
World
Omni
Auto
Receivables
Trust
2019-A
3.02%,
04/15/2022
136‌
136‌
$
6,553‌
Automobile
Floor
Plan
Asset
Backed
Securities
-
0.96%
GMF
Floorplan
Owner
Revolving
Trust
0.50%,
09/15/2022
(e)
2,500‌
2,498‌
1.00
x
1
Month
USD
LIBOR
+
0.32%
Automobile
Manufacturers
-
1.18%
BMW
US
Capital
LLC
3.80%,
04/06/2023
(e)
305‌
328‌
3.90%,
04/09/2025
(e)
550‌
610‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
39
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Manufacturers
(continued)
Daimler
Finance
North
America
LLC
2.70%,
08/03/2020
(e)
$
450‌
$
451‌
Ford
Motor
Co
8.50%,
04/21/2023
80‌
85‌
9.00%,
04/22/2025
80‌
86‌
9.63%,
04/22/2030
(f)
25‌
30‌
Ford
Motor
Credit
Co
LLC
4.14%,
02/15/2023
520‌
509‌
General
Motors
Co
6.25%,
10/02/2043
120‌
127‌
6.60%,
04/01/2036
275‌
297‌
General
Motors
Financial
Co
Inc
3.45%,
01/14/2022
365‌
371‌
Navistar
International
Corp
6.63%,
11/01/2025
(e)
155‌
147‌
9.50%,
05/01/2025
(e)
25‌
27‌
$
3,068‌
Automobile
Parts
&
Equipment
-
0.06%
American
Axle
&
Manufacturing
Inc
6.63%,
10/15/2022
60‌
61‌
6.88%,
07/01/2028
40‌
39‌
Dana
Inc
5.38%,
11/15/2027
40‌
40‌
5.63%,
06/15/2028
25‌
25‌
$
165‌
Banks
-
9.44%
ANZ
New
Zealand
Int'l
Ltd/London
2.55%,
02/13/2030
(e),(f)
300‌
321‌
Banco
de
Credito
del
Peru
2.70%,
01/11/2025
(e)
100‌
100‌
Banco
Internacional
del
Peru
SAA
Interbank
3.25%,
10/04/2026
(e)
150‌
151‌
Banco
Santander
Mexico
SA
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand
5.38%,
04/17/2025
(e)
150‌
164‌
Banco
Santander
SA
2.75%,
05/28/2025
600‌
622‌
Bancolombia
SA
3.00%,
01/29/2025
200‌
196‌
Bank
of
America
Corp
2.68%,
06/19/2041
(h)
355‌
365‌
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.88%,
10/22/2030
(h)
305‌
330‌
3
Month
USD
LIBOR
+
1.19%
3.19%,
07/23/2030
(h)
165‌
182‌
3
Month
USD
LIBOR
+
1.18%
3.46%,
03/15/2025
(h)
135‌
146‌
3
Month
USD
LIBOR
+
0.97%
4.20%,
08/26/2024
700‌
777‌
4.25%,
10/22/2026
150‌
172‌
4.30%,
12/31/2099
(h),(i)
175‌
157‌
3
Month
USD
LIBOR
+
2.66%
Bank
of
Montreal
3.80%,
12/15/2032
(h)
185‌
199‌
USD
Swap
Semi-Annual
5
Year
+
1.43%
Barclays
PLC
2.85%,
05/07/2026
(h)
400‌
418‌
3
Month
USD
LIBOR
+
2.45%
7.75%,
12/31/2049
(h),(i)
200‌
203‌
USD
Swap
Semi-Annual
5
Year
+
4.84%
BNP
Paribas
SA
2.22%,
06/09/2026
(e),(h)
400‌
410‌
United
States
Secured
Overnight
Financing
Rate
+
2.07%
4.50%,
12/31/2049
(e),(h),(i)
310‌
272‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.94%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
CIT
Group
Inc
3.93%,
06/19/2024
(h)
$
35‌
$
34‌
United
States
Secured
Overnight
Financing
Rate
+
3.83%
4.13%,
03/09/2021
50‌
50‌
5.00%,
08/15/2022
120‌
123‌
5.80%,
12/31/2049
(h),(i)
95‌
73‌
3
Month
USD
LIBOR
+
3.97%
Citigroup
Inc
3.11%,
04/08/2026
(h)
495‌
532‌
United
States
Secured
Overnight
Financing
Rate
+
2.75%
3.52%,
10/27/2028
(h)
60‌
66‌
3
Month
USD
LIBOR
+
1.15%
4.65%,
07/23/2048
105‌
137‌
4.70%,
12/31/2049
(h),(i)
75‌
67‌
United
States
Secured
Overnight
Financing
Rate
+
3.23%
Cooperatieve
Rabobank
UA
3.95%,
11/09/2022
300‌
317‌
Credit
Suisse
AG/New
York
NY
2.95%,
04/09/2025
980‌
1,064‌
Credit
Suisse
Group
AG
2.19%,
06/05/2026
(e),(h)
1,000‌
1,013‌
United
States
Secured
Overnight
Financing
Rate
+
2.04%
4.19%,
04/01/2031
(e),(h)
250‌
285‌
United
States
Secured
Overnight
Financing
Rate
+
3.73%
5.10%,
12/31/2049
(e),(h),(i)
200‌
190‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.29%
Danske
Bank
A/S
3.00%,
09/20/2022
(e),(h)
1,000‌
1,016‌
3
Month
USD
LIBOR
+
1.25%
DBS
Group
Holdings
Ltd
4.52%,
12/11/2028
(e),(h)
315‌
340‌
USD
Swap
Rate
NY
5
Year
+
1.59%
First
Republic
Bank/CA
2.50%,
06/06/2022
250‌
257‌
4.63%,
02/13/2047
500‌
600‌
Goldman
Sachs
Group
Inc/The
3.63%,
02/20/2024
275‌
299‌
3.85%,
01/26/2027
160‌
180‌
5.75%,
01/24/2022
370‌
399‌
6.75%,
10/01/2037
300‌
437‌
HSBC
Holdings
PLC
2.63%,
11/07/2025
(h)
335‌
347‌
3
Month
USD
LIBOR
+
1.14%
4.25%,
03/14/2024
435‌
469‌
JPMorgan
Chase
&
Co
2.08%,
04/22/2026
(h)
335‌
348‌
United
States
Secured
Overnight
Financing
Rate
+
1.85%
3.96%,
11/15/2048
(h)
20‌
24‌
3
Month
USD
LIBOR
+
1.38%
4.60%,
12/31/2049
(h),(i)
765‌
683‌
United
States
Secured
Overnight
Financing
Rate
+
3.13%
4.95%,
06/01/2045
140‌
188‌
5.50%,
10/15/2040
260‌
373‌
Lloyds
Banking
Group
PLC
3.87%,
07/09/2025
(h)
850‌
923‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
3.50%
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
40
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Morgan
Stanley
2.19%,
04/28/2026
(h)
$
150‌
$
156‌
United
States
Secured
Overnight
Financing
Rate
+
1.99%
3.62%,
04/01/2031
(h)
170‌
194‌
United
States
Secured
Overnight
Financing
Rate
+
3.12%
5.00%,
11/24/2025
330‌
385‌
5.55%,
12/31/2049
(h),(i)
565‌
519‌
3
Month
USD
LIBOR
+
3.81%
6.38%,
07/24/2042
120‌
187‌
NatWest
Markets
PLC
2.38%,
05/21/2023
(e)
200‌
205‌
Popular
Inc
6.13%,
09/14/2023
65‌
66‌
Royal
Bank
of
Scotland
Group
PLC
4.27%,
03/22/2025
(h)
200‌
218‌
3
Month
USD
LIBOR
+
1.76%
5.13%,
05/28/2024
890‌
974‌
6.00%,
12/31/2049
(f),(h),(i)
425‌
431‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.63%
7.50%,
12/31/2049
(h),(i)
425‌
427‌
USD
Swap
Semi-Annual
5
Year
+
5.80%
Santander
UK
PLC
5.00%,
11/07/2023
(e)
287‌
313‌
Standard
Chartered
PLC
2.82%,
01/30/2026
(e),(h)
235‌
240‌
3
Month
USD
LIBOR
+
1.21%
6.00%,
12/31/2049
(e),(h),(i)
690‌
686‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.66%
Synchrony
Bank
3.00%,
06/15/2022
1,125‌
1,149‌
UBS
AG/London
1.75%,
04/21/2022
(e)
460‌
469‌
UBS
Group
AG
6.88%,
12/31/2049
(h),(i)
440‌
445‌
USD
Swap
Semi-Annual
(VS
6
Month)
5
Year
+
5.50%
US
Bancorp
3.00%,
07/30/2029
175‌
190‌
Wells
Fargo
&
Co
2.39%,
06/02/2028
(h)
545‌
563‌
United
States
Secured
Overnight
Financing
Rate
+
2.10%
3.07%,
04/30/2041
(h)
105‌
110‌
United
States
Secured
Overnight
Financing
Rate
+
2.53%
4.40%,
06/14/2046
170‌
203‌
Westpac
Banking
Corp
4.11%,
07/24/2034
(h)
85‌
94‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
315‌
371‌
$
24,614‌
Beverages
-
0.64%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
115‌
129‌
4.90%,
02/01/2046
490‌
600‌
Anheuser-Busch
InBev
Worldwide
Inc
2.50%,
07/15/2022
27‌
28‌
5.45%,
01/23/2039
225‌
284‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Constellation
Brands
Inc
2.88%,
05/01/2030
$
90‌
$
95‌
3.15%,
08/01/2029
410‌
440‌
4.40%,
11/15/2025
70‌
81‌
$
1,657‌
Biotechnology
-
0.07%
Amgen
Inc
2.20%,
02/21/2027
175‌
184‌
Building
Materials
-
0.23%
BMC
East
LLC
5.50%,
10/01/2024
(e)
100‌
101‌
Builders
FirstSource
Inc
5.00%,
03/01/2030
(e)
65‌
61‌
6.75%,
06/01/2027
(e)
85‌
87‌
Carrier
Global
Corp
2.24%,
02/15/2025
(e)
155‌
158‌
Martin
Marietta
Materials
Inc
2.50%,
03/15/2030
115‌
116‌
Norbord
Inc
5.75%,
07/15/2027
(e)
65‌
66‌
$
589‌
Chemicals
-
0.80%
Air
Products
and
Chemicals
Inc
2.70%,
05/15/2040
85‌
89‌
Aruba
Investments
Inc
8.75%,
02/15/2023
(e)
203‌
204‌
Blue
Cube
Spinco
LLC
9.75%,
10/15/2023
70‌
72‌
Braskem
Netherlands
Finance
BV
4.50%,
01/31/2030
(e)
200‌
183‌
CF
Industries
Inc
4.95%,
06/01/2043
135‌
146‌
Consolidated
Energy
Finance
SA
6.50%,
05/15/2026
(e)
165‌
139‌
DuPont
de
Nemours
Inc
5.32%,
11/15/2038
165‌
209‌
5.42%,
11/15/2048
105‌
138‌
EI
du
Pont
de
Nemours
and
Co
1.70%,
07/15/2025
175‌
181‌
2.30%,
07/15/2030
35‌
36‌
LYB
International
Finance
III
LLC
2.88%,
05/01/2025
250‌
266‌
NOVA
Chemicals
Corp
5.25%,
08/01/2023
(e)
55‌
53‌
PolyOne
Corp
5.75%,
05/15/2025
(e)
75‌
77‌
SABIC
Capital
II
BV
4.00%,
10/10/2023
(e)
200‌
213‌
Valvoline
Inc
4.25%,
02/15/2030
(e)
30‌
30‌
4.38%,
08/15/2025
(e)
15‌
15‌
Westlake
Chemical
Corp
3.38%,
06/15/2030
35‌
36‌
$
2,087‌
Commercial
Mortgage
Backed
Securities
-
1.96%
BANK
2017-BNK9
4.03%,
11/15/2054
(j)
500‌
507‌
Benchmark
2019-B15
Mortgage
Trust
3.56%,
12/15/2072
250‌
252‌
Citigroup
Commercial
Mortgage
Trust
2015-GC27
3.57%,
02/10/2048
900‌
946‌
Citigroup
Commercial
Mortgage
Trust
2016-GC37
3.58%,
04/10/2049
350‌
369‌
Credit
Suisse
Commercial
Mortgage
Trust
Series
2006-C5
1.09%,
12/15/2039
(j),(k)
130‌
2‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
41
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
GS
Mortgage
Securities
Trust
2011-GC5
1.49%,
08/10/2044
(e),(j),(k)
$
9,057‌
$
85‌
GS
Mortgage
Securities
Trust
2012-GCJ7
2.35%,
05/10/2045
(j),(k)
1,595‌
31‌
GS
Mortgage
Securities
Trust
2013-GC16
1.21%,
11/10/2046
(j),(k)
1,903‌
54‌
GS
Mortgage
Securities
Trust
2014-GC26
1.11%,
11/10/2047
(j),(k)
4,183‌
143‌
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
375‌
410‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.61%,
08/15/2046
(e),(j)
350‌
346‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2012-LC9
1.65%,
12/15/2047
(j),(k)
1,792‌
51‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2016-JP3
3.14%,
08/15/2049
500‌
520‌
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C24
4.55%,
11/15/2047
(j)
500‌
430‌
LB-UBS
Commercial
Mortgage
Trust
2007-C1
0.35%,
02/15/2040
(j),(k)
397‌
—‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2012-C5
1.58%,
08/15/2045
(e),(j),(k)
3,129‌
69‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C14
1.15%,
02/15/2047
(j),(k)
5,832‌
126‌
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C16
1.16%,
06/15/2047
(j),(k)
3,485‌
99‌
MSBAM
Commercial
Mortgage
Securities
Trust
2012-CKSV
1.19%,
10/15/2030
(e),(j),(k)
3,500‌
65‌
UBS-Barclays
Commercial
Mortgage
Trust
2012-C4
1.76%,
12/10/2045
(e),(j),(k)
1,172‌
33‌
3.32%,
12/10/2045
(e)
500‌
510‌
WFRBS
Commercial
Mortgage
Trust
2013-C12
1.34%,
03/15/2048
(e),(j),(k)
2,362‌
59‌
$
5,107‌
Commercial
Services
-
0.64%
ADT
Security
Corp/The
6.25%,
10/15/2021
45‌
46‌
Ahern
Rentals
Inc
7.38%,
05/15/2023
(e)
145‌
70‌
Brink's
Co/The
5.50%,
07/15/2025
(e)
110‌
112‌
CoStar
Group
Inc
2.80%,
07/15/2030
(e),(g)
140‌
143‌
DP
World
PLC
6.85%,
07/02/2037
100‌
121‌
Garda
World
Security
Corp
9.50%,
11/01/2027
(e)
126‌
133‌
Global
Payments
Inc
2.65%,
02/15/2025
180‌
191‌
PayPal
Holdings
Inc
2.65%,
10/01/2026
240‌
261‌
Prime
Security
Services
Borrower
LLC
/
Prime
Finance
Inc
6.25%,
01/15/2028
(e)
110‌
104‌
Refinitiv
US
Holdings
Inc
6.25%,
05/15/2026
(e)
95‌
101‌
8.25%,
11/15/2026
(e)
60‌
65‌
Tms
International
Holding
Corp
7.25%,
08/15/2025
(e)
195‌
159‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
(continued)
United
Rentals
North
America
Inc
4.63%,
10/15/2025
$
75‌
$
75‌
4.88%,
01/15/2028
75‌
77‌
$
1,658‌
Computers
-
0.86%
Apple
Inc
2.75%,
01/13/2025
220‌
239‌
4.65%,
02/23/2046
110‌
152‌
Dell
International
LLC
/
EMC
Corp
4.42%,
06/15/2021
(e)
365‌
375‌
4.90%,
10/01/2026
(e)
370‌
408‌
5.45%,
06/15/2023
(e)
250‌
274‌
7.13%,
06/15/2024
(e)
235‌
243‌
8.35%,
07/15/2046
(e)
125‌
167‌
NetApp
Inc
1.88%,
06/22/2025
290‌
294‌
Seagate
HDD
Cayman
4.13%,
01/15/2031
(e)
80‌
84‌
$
2,236‌
Credit
Card
Asset
Backed
Securities
-
0.86%
Chase
Issuance
Trust
0.38%,
04/17/2023
1,238‌
1,239‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
0.73%,
06/15/2023
1,000‌
1,004‌
1.00
x
1
Month
USD
LIBOR
+
0.55%
$
2,243‌
Distribution
&
Wholesale
-
0.07%
American
Builders
&
Contractors
Supply
Co
Inc
4.00%,
01/15/2028
(e)
90‌
87‌
5.88%,
05/15/2026
(e)
105‌
104‌
$
191‌
Diversified
Financial
Services
-
1.61%
AerCap
Holdings
NV
5.88%,
10/10/2079
(h)
150‌
108‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.54%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
4.50%,
09/15/2023
(g)
705‌
705‌
Air
Lease
Corp
3.38%,
07/01/2025
370‌
371‌
Ally
Financial
Inc
4.25%,
04/15/2021
30‌
31‌
Blackstone
Holdings
Finance
Co
LLC
3.50%,
09/10/2049
(e)
50‌
52‌
Brookfield
Finance
Inc
4.00%,
04/01/2024
870‌
943‌
4.85%,
03/29/2029
100‌
118‌
Brookfield
Finance
LLC
3.45%,
04/15/2050
310‌
297‌
Credit
Acceptance
Corp
5.13%,
12/31/2024
(e)
30‌
29‌
6.63%,
03/15/2026
205‌
206‌
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
200‌
203‌
Global
Aircraft
Leasing
Co
Ltd
6.50%,
PIK
7.25%,
09/15/2024
(e),(j),(l)
100‌
67‌
ILFC
E-Capital
Trust
II
3.27%,
12/21/2065
(e),(j)
100‌
52‌
Navient
Corp
5.00%,
03/15/2027
50‌
42‌
6.63%,
07/26/2021
125‌
122‌
6.75%,
06/15/2026
140‌
130‌
Nuveen
Finance
LLC
4.13%,
11/01/2024
(e)
290‌
327‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
42
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Springleaf
Finance
Corp
5.63%,
03/15/2023
$
75‌
$
76‌
6.63%,
01/15/2028
130‌
129‌
6.88%,
03/15/2025
175‌
180‌
8.88%,
06/01/2025
5‌
5‌
$
4,193‌
Electric
-
3.59%
Alabama
Power
Co
3.45%,
10/01/2049
160‌
175‌
Avangrid
Inc
3.20%,
04/15/2025
490‌
536‌
Centrais
Eletricas
Brasileiras
SA
3.63%,
02/04/2025
(e)
200‌
196‌
CMS
Energy
Corp
3.00%,
05/15/2026
75‌
81‌
4.70%,
03/31/2043
120‌
144‌
Commonwealth
Edison
Co
4.00%,
03/01/2049
225‌
279‌
Dominion
Energy
Inc
2.58%,
07/01/2020
900‌
900‌
3.90%,
10/01/2025
100‌
113‌
4.25%,
06/01/2028
85‌
98‌
DTE
Electric
Co
3.95%,
03/01/2049
60‌
73‌
DTE
Energy
Co
3.40%,
06/15/2029
280‌
302‌
Duke
Energy
Florida
LLC
3.80%,
07/15/2028
220‌
257‌
Enel
Chile
SA
4.88%,
06/12/2028
105‌
117‌
Evergy
Inc
2.90%,
09/15/2029
245‌
262‌
Exelon
Corp
3.50%,
06/01/2022
215‌
225‌
FirstEnergy
Corp
1.60%,
01/15/2026
145‌
146‌
2.25%,
09/01/2030
50‌
50‌
3.40%,
03/01/2050
250‌
264‌
Fortis
Inc/Canada
3.06%,
10/04/2026
103‌
111‌
Georgia
Power
Co
3.70%,
01/30/2050
50‌
55‌
4.30%,
03/15/2043
80‌
95‌
Indiantown
Cogeneration
LP
9.77%,
12/15/2020
10‌
11‌
MidAmerican
Energy
Co
3.15%,
04/15/2050
120‌
136‌
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
180‌
186‌
4.75%,
04/30/2043
(h)
125‌
125‌
3
Month
USD
LIBOR
+
2.91%
NextEra
Energy
Capital
Holdings
Inc
2.75%,
05/01/2025
370‌
400‌
2.75%,
11/01/2029
145‌
156‌
3.50%,
04/01/2029
300‌
339‌
NextEra
Energy
Operating
Partners
LP
4.25%,
07/15/2024
(e)
145‌
147‌
NRG
Energy
Inc
5.25%,
06/15/2029
(e)
80‌
84‌
6.63%,
01/15/2027
110‌
115‌
7.25%,
05/15/2026
85‌
90‌
Pacific
Gas
and
Electric
Co
1.75%,
06/16/2022
735‌
736‌
Perusahaan
Perseroan
Persero
PT
Perusahaan
Listrik
Negara
3.88%,
07/17/2029
(e)
200‌
209‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
PPL
Electric
Utilities
Corp
3.95%,
06/01/2047
$
85‌
$
103‌
4.75%,
07/15/2043
90‌
117‌
PPL
WEM
Ltd
/
Western
Power
Distribution
PLC
5.38%,
05/01/2021
(e)
735‌
753‌
Public
Service
Co
of
Colorado
4.05%,
09/15/2049
55‌
68‌
Southern
California
Edison
Co
4.20%,
03/01/2029
125‌
146‌
4.88%,
03/01/2049
150‌
196‌
Southern
Co/The
5.50%,
03/15/2057
(h)
50‌
51‌
3
Month
USD
LIBOR
+
3.63%
Tucson
Electric
Power
Co
4.85%,
12/01/2048
25‌
33‌
Virginia
Electric
and
Power
Co
3.80%,
04/01/2028
180‌
209‌
4.60%,
12/01/2048
60‌
79‌
Vistra
Operations
Co
LLC
5.50%,
09/01/2026
(e)
100‌
102‌
5.63%,
02/15/2027
(e)
55‌
56‌
Xcel
Energy
Inc
2.60%,
12/01/2029
205‌
220‌
$
9,346‌
Electrical
Components
&
Equipment
-
0.14%
Energizer
Holdings
Inc
4.75%,
06/15/2028
(e),(g)
85‌
83‌
5.50%,
06/15/2025
(e)
65‌
67‌
6.38%,
07/15/2026
(e)
60‌
62‌
WESCO
Distribution
Inc
7.13%,
06/15/2025
(e)
90‌
95‌
7.25%,
06/15/2028
(e)
45‌
48‌
$
355‌
Electronics
-
0.08%
Sensata
Technologies
BV
5.00%,
10/01/2025
(e)
155‌
165‌
Sensata
Technologies
Inc
4.38%,
02/15/2030
(e)
55‌
54‌
$
219‌
Engineering
&
Construction
-
0.02%
MasTec
Inc
4.88%,
03/15/2023
60‌
60‌
Entertainment
-
0.46%
Boyne
USA
Inc
7.25%,
05/01/2025
(e)
150‌
157‌
Caesars
Resort
Collection
LLC
/
CRC
Finco
Inc
5.25%,
10/15/2025
(e)
100‌
87‌
CCM
Merger
Inc
6.00%,
03/15/2022
(e)
145‌
144‌
Colt
Merger
Sub
Inc
6.25%,
07/01/2025
(e),(g)
130‌
129‌
8.13%,
07/01/2027
(e),(g)
120‌
116‌
Eldorado
Resorts
Inc
6.00%,
04/01/2025
35‌
37‌
6.00%,
09/15/2026
185‌
200‌
Enterprise
Development
Authority/The
12.00%,
07/15/2024
(e)
125‌
126‌
Lions
Gate
Capital
Holdings
LLC
5.88%,
11/01/2024
(e)
80‌
76‌
Scientific
Games
International
Inc
8.63%,
07/01/2025
(g)
55‌
51‌
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp
5.13%,
10/01/2029
(e)
100‌
89‌
$
1,212‌
Environmental
Control
-
0.25%
Republic
Services
Inc
2.30%,
03/01/2030
140‌
146‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
43
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Environmental
Control
(continued)
Waste
Connections
Inc
2.60%,
02/01/2030
$
135‌
$
142‌
4.25%,
12/01/2028
300‌
355‌
$
643‌
Food
-
0.75%
Albertsons
Cos
Inc
/
Safeway
Inc
/
New
Albertsons
LP
/
Albertsons
LLC
4.63%,
01/15/2027
(e)
115‌
115‌
5.75%,
03/15/2025
70‌
71‌
5.88%,
02/15/2028
(e)
90‌
93‌
6.63%,
06/15/2024
105‌
108‌
Gruma
SAB
de
CV
4.88%,
12/01/2024
(e)
350‌
375‌
Ingles
Markets
Inc
5.75%,
06/15/2023
113‌
113‌
JBS
USA
LUX
SA
/
JBS
USA
Finance
Inc
5.75%,
06/15/2025
(e)
160‌
162‌
JBS
USA
LUX
SA
/
JBS
USA
Food
Co
/
JBS
USA
Finance
Inc
6.50%,
04/15/2029
(e)
45‌
48‌
Kraft
Heinz
Foods
Co
4.38%,
06/01/2046
125‌
123‌
McCormick
&
Co
Inc/MD
3.15%,
08/15/2024
225‌
244‌
Post
Holdings
Inc
4.63%,
04/15/2030
(e)
30‌
29‌
5.00%,
08/15/2026
(e)
225‌
226‌
TreeHouse
Foods
Inc
4.88%,
03/15/2022
40‌
40‌
Want
Want
China
Finance
Ltd
2.88%,
04/27/2022
200‌
204‌
$
1,951‌
Gas
-
0.25%
Dominion
Energy
Gas
Holdings
LLC
3.00%,
11/15/2029
115‌
123‌
Piedmont
Natural
Gas
Co
Inc
3.50%,
06/01/2029
180‌
205‌
Southern
California
Gas
Co
2.55%,
02/01/2030
130‌
140‌
Southern
Co
Gas
Capital
Corp
4.40%,
05/30/2047
165‌
196‌
$
664‌
Healthcare
-
Products
-
0.50%
Abbott
Laboratories
4.90%,
11/30/2046
185‌
266‌
Boston
Scientific
Corp
3.45%,
03/01/2024
290‌
314‌
4.55%,
03/01/2039
260‌
319‌
4.70%,
03/01/2049
215‌
274‌
Medtronic
Inc
4.38%,
03/15/2035
106‌
139‌
$
1,312‌
Healthcare
-
Services
-
0.90%
Centene
Corp
3.38%,
02/15/2030
265‌
267‌
4.25%,
12/15/2027
20‌
21‌
4.63%,
12/15/2029
70‌
74‌
4.75%,
05/15/2022
155‌
157‌
5.25%,
04/01/2025
(e)
200‌
206‌
5.38%,
06/01/2026
(e)
100‌
104‌
CHS/Community
Health
Systems
Inc
6.25%,
03/31/2023
110‌
103‌
8.00%,
03/15/2026
(e)
105‌
99‌
DaVita
Inc
4.63%,
06/01/2030
(e)
100‌
99‌
HCA
Inc
5.88%,
05/01/2023
150‌
162‌
5.88%,
02/01/2029
275‌
311‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
Tenet
Healthcare
Corp
4.63%,
07/15/2024
$
95‌
$
93‌
4.63%,
09/01/2024
(e)
80‌
78‌
5.13%,
11/01/2027
(e)
105‌
104‌
7.50%,
04/01/2025
(e)
60‌
64‌
UnitedHealth
Group
Inc
2.75%,
05/15/2040
235‌
252‌
3.50%,
08/15/2039
140‌
163‌
$
2,357‌
Home
Builders
-
0.29%
Forestar
Group
Inc
5.00%,
03/01/2028
(e)
5‌
5‌
8.00%,
04/15/2024
(e)
260‌
269‌
KB
Home
7.63%,
05/15/2023
55‌
60‌
Lennar
Corp
4.88%,
12/15/2023
80‌
84‌
LGI
Homes
Inc
6.88%,
07/15/2026
(e)
200‌
204‌
Picasso
Finance
Sub
Inc
6.13%,
06/15/2025
(e)
95‌
97‌
Williams
Scotsman
International
Inc
7.88%,
12/15/2022
(e)
25‌
26‌
$
745‌
Home
Equity
Asset
Backed
Securities
-
0.07%
Saxon
Asset
Securities
Trust
2004-1
1.88%,
03/25/2035
119‌
76‌
1.00
x
1
Month
USD
LIBOR
+
1.70%
Specialty
Underwriting
&
Residential
Finance
Trust
Series
2004-BC1
0.95%,
02/25/2035
123‌
113‌
1.00
x
1
Month
USD
LIBOR
+
0.77%
$
189‌
Insurance
-
1.94%
Acrisure
LLC
/
Acrisure
Finance
Inc
8.13%,
02/15/2024
(e)
95‌
99‌
American
International
Group
Inc
3.90%,
04/01/2026
400‌
452‌
4.50%,
07/16/2044
360‌
419‌
Arch
Capital
Finance
LLC
4.01%,
12/15/2026
125‌
142‌
5.03%,
12/15/2046
125‌
156‌
Arch
Capital
Group
Ltd
3.64%,
06/30/2050
190‌
199‌
Markel
Corp
3.35%,
09/17/2029
265‌
283‌
4.30%,
11/01/2047
95‌
107‌
Massachusetts
Mutual
Life
Insurance
Co
3.38%,
04/15/2050
(e)
105‌
108‌
New
York
Life
Insurance
Co
3.75%,
05/15/2050
(e)
120‌
136‌
PartnerRe
Finance
B
LLC
3.70%,
07/02/2029
50‌
55‌
Pricoa
Global
Funding
I
3.45%,
09/01/2023
(e)
575‌
625‌
Progressive
Corp/The
3.95%,
03/26/2050
80‌
101‌
Swiss
Re
Finance
Luxembourg
SA
5.00%,
04/02/2049
(e),(h)
200‌
224‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.58%
Voya
Financial
Inc
5.65%,
05/15/2053
(h)
360‌
363‌
3
Month
USD
LIBOR
+
3.58%
6.13%,
12/31/2049
(h),(i)
50‌
49‌
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.36%
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
44
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
XLIT
Ltd
4.45%,
03/31/2025
$
830‌
$
935‌
5.50%,
03/31/2045
450‌
602‌
$
5,055‌
Internet
-
0.42%
Amazon.com
Inc
1.20%,
06/03/2027
145‌
147‌
2.50%,
06/03/2050
125‌
128‌
2.70%,
06/03/2060
110‌
112‌
Baidu
Inc
3.08%,
04/07/2025
200‌
210‌
4.38%,
05/14/2024
200‌
218‌
Netflix
Inc
4.38%,
11/15/2026
200‌
208‌
NortonLifeLock
Inc
3.95%,
06/15/2022
65‌
66‌
$
1,089‌
Investment
Companies
-
0.10%
Icahn
Enterprises
LP
/
Icahn
Enterprises
Finance
Corp
4.75%,
09/15/2024
50‌
47‌
6.25%,
02/01/2022
60‌
60‌
6.25%,
05/15/2026
80‌
80‌
6.38%,
12/15/2025
65‌
65‌
$
252‌
Iron
&
Steel
-
0.56%
Cleveland-Cliffs
Inc
4.88%,
01/15/2024
(e)
55‌
52‌
6.38%,
10/15/2025
(e)
25‌
20‌
6.75%,
03/15/2026
(e)
25‌
24‌
Nucor
Corp
2.00%,
06/01/2025
130‌
135‌
2.70%,
06/01/2030
30‌
31‌
Steel
Dynamics
Inc
2.40%,
06/15/2025
220‌
227‌
2.80%,
12/15/2024
700‌
728‌
3.25%,
01/15/2031
50‌
51‌
3.45%,
04/15/2030
100‌
104‌
Vale
Overseas
Ltd
6.25%,
08/10/2026
50‌
59‌
6.88%,
11/21/2036
26‌
34‌
$
1,465‌
Leisure
Products
&
Services
-
0.01%
NCL
Corp
Ltd
3.63%,
12/15/2024
(e)
40‌
24‌
Lodging
-
0.03%
Hilton
Domestic
Operating
Co
Inc
5.38%,
05/01/2025
(e)
10‌
10‌
5.75%,
05/01/2028
(e)
10‌
10‌
MGM
Resorts
International
6.00%,
03/15/2023
60‌
61‌
$
81‌
Machinery
-
Diversified
-
0.15%
Maxim
Crane
Works
Holdings
Capital
LLC
10.13%,
08/01/2024
(e)
230‌
226‌
Westinghouse
Air
Brake
Technologies
Corp
3.20%,
06/15/2025
150‌
153‌
$
379‌
Media
-
2.91%
Altice
Financing
SA
7.50%,
05/15/2026
(e)
200‌
209‌
AMC
Networks
Inc
4.75%,
12/15/2022
37‌
37‌
4.75%,
08/01/2025
125‌
123‌
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp
4.50%,
08/15/2030
(e)
157‌
160‌
5.50%,
05/01/2026
(e)
250‌
259‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
3.70%,
04/01/2051
$
185‌
$
181‌
4.46%,
07/23/2022
320‌
341‌
4.80%,
03/01/2050
135‌
149‌
4.91%,
07/23/2025
620‌
711‌
6.48%,
10/23/2045
120‌
159‌
Comcast
Corp
3.75%,
04/01/2040
165‌
193‌
3.95%,
10/15/2025
200‌
229‌
3.97%,
11/01/2047
210‌
249‌
4.60%,
10/15/2038
280‌
356‌
4.60%,
08/15/2045
160‌
206‌
6.45%,
03/15/2037
200‌
296‌
CSC
Holdings
LLC
6.50%,
02/01/2029
(e)
208‌
227‌
6.75%,
11/15/2021
40‌
42‌
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co
5.38%,
08/15/2026
(e)
50‌
36‌
DISH
DBS
Corp
5.88%,
07/15/2022
140‌
142‌
6.75%,
06/01/2021
40‌
41‌
7.38%,
07/01/2028
(g)
50‌
50‌
Fox
Corp
3.05%,
04/07/2025
100‌
108‌
5.48%,
01/25/2039
95‌
127‌
5.58%,
01/25/2049
90‌
125‌
Meredith
Corp
6.88%,
02/01/2026
190‌
158‌
NBCUniversal
Media
LLC
4.45%,
01/15/2043
145‌
182‌
Radiate
Holdco
LLC
/
Radiate
Finance
Inc
6.63%,
02/15/2025
(e)
35‌
35‌
Time
Warner
Cable
LLC
4.00%,
09/01/2021
225‌
231‌
5.88%,
11/15/2040
135‌
167‌
6.55%,
05/01/2037
100‌
132‌
UPC
Holding
BV
5.50%,
01/15/2028
(e)
300‌
288‌
ViacomCBS
Inc
2.90%,
01/15/2027
350‌
367‌
4.38%,
03/15/2043
105‌
110‌
4.75%,
05/15/2025
215‌
246‌
4.95%,
05/19/2050
120‌
134‌
VTR
Finance
NV
6.38%,
07/15/2028
(e),(g)
200‌
205‌
Walt
Disney
Co/The
2.65%,
01/13/2031
30‌
32‌
3.50%,
05/13/2040
260‌
284‌
5.40%,
10/01/2043
80‌
109‌
Ziggo
BV
5.50%,
01/15/2027
(e)
150‌
152‌
$
7,588‌
Metal
Fabrication
&
Hardware
-
0.04%
Advanced
Drainage
Systems
Inc
5.00%,
09/30/2027
(e)
65‌
66‌
Park-Ohio
Industries
Inc
6.63%,
04/15/2027
60‌
49‌
$
115‌
Mining
-
0.93%
First
Quantum
Minerals
Ltd
7.25%,
04/01/2023
(e)
200‌
191‌
7.50%,
04/01/2025
(e)
200‌
192‌
FMG
Resources
August
2006
Pty
Ltd
4.75%,
05/15/2022
(e)
125‌
127‌
Freeport-McMoRan
Inc
4.25%,
03/01/2030
75‌
73‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
45
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mining
(continued)
Glencore
Funding
LLC
3.00%,
10/27/2022
(e)
$
400‌
$
411‌
Hudbay
Minerals
Inc
7.25%,
01/15/2023
(e)
70‌
69‌
7.63%,
01/15/2025
(e)
130‌
124‌
IAMGOLD
Corp
7.00%,
04/15/2025
(e)
135‌
136‌
New
Gold
Inc
7.50%,
07/15/2027
(e)
125‌
129‌
Newmont
Corp
2.25%,
10/01/2030
255‌
258‌
Novelis
Corp
4.75%,
01/30/2030
(e)
165‌
158‌
Taseko
Mines
Ltd
8.75%,
06/15/2022
(e)
115‌
96‌
Teck
Resources
Ltd
3.90%,
07/15/2030
(e)
160‌
159‌
6.13%,
10/01/2035
180‌
204‌
6.25%,
07/15/2041
85‌
93‌
$
2,420‌
Miscellaneous
Manufacturers
-
0.24%
General
Electric
Co
3.45%,
05/01/2027
85‌
87‌
5.55%,
01/05/2026
180‌
207‌
5.88%,
01/14/2038
220‌
249‌
6.88%,
01/10/2039
75‌
92‌
$
635‌
Mortgage
Backed
Securities
-
3.50%
Fannie
Mae
REMIC
Trust
2005-W2
0.38%,
05/25/2035
29‌
29‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
Fannie
Mae
REMICS
2.25%,
07/25/2040
73‌
75‌
3.00%,
04/25/2022
(k)
125‌
2‌
3.00%,
04/25/2027
(k)
181‌
11‌
3.50%,
11/25/2027
(k)
125‌
9‌
3.50%,
07/25/2028
(k)
239‌
16‌
3.50%,
03/25/2031
(k)
255‌
10‌
5.82%,
10/25/2046
(k)
976‌
229‌
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
5.92%,
02/25/2043
(k)
277‌
60‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.92%,
09/25/2046
(k)
259‌
54‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.32%,
03/25/2022
(k)
9‌
—‌
(1.00)
x
1
Month
USD
LIBOR
+
6.50%
Freddie
Mac
REMICS
0.63%,
05/15/2049
1,878‌
1,881‌
1.00
x
1
Month
USD
LIBOR
+
0.45%
3.00%,
09/15/2025
(k)
15‌
—‌
3.00%,
03/15/2026
(k)
137‌
2‌
3.00%,
05/15/2027
(k)
142‌
8‌
3.00%,
10/15/2027
(k)
78‌
5‌
3.50%,
11/15/2020
(k)
26‌
—‌
4.00%,
11/15/2038
(k)
251‌
7‌
Ginnie
Mae
5.31%,
05/20/2042
(k)
992‌
208‌
(1.00)
x
1
Month
USD
LIBOR
+
5.50%
5.90%,
07/16/2042
(k)
2,188‌
498‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.90%,
07/16/2043
(k)
596‌
121‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.91%,
11/20/2041
(k)
263‌
62‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.91%,
06/20/2046
(k)
636‌
133‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
12/20/2043
(k)
312‌
78‌
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Ginnie
Mae  
(continued)
6.01%,
09/20/2041
(k)
$
2,740‌
$
484‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
11/20/2045
(k)
1,663‌
359‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
08/20/2047
(k)
1,667‌
373‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
09/20/2047
(k)
2,639‌
570‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
08/16/2045
(k)
2,517‌
569‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.06%,
06/20/2044
(k)
3,909‌
529‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.45%,
04/16/2042
(k)
1,068‌
255‌
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.46%,
02/20/2042
(k)
167‌
43‌
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.56%,
11/20/2045
(k)
2,236‌
534‌
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
6.89%,
04/20/2041
(k)
1,250‌
295‌
(1.10)
x
1
Month
USD
LIBOR
+
7.10%
HomeBanc
Mortgage
Trust
2005-5
0.52%,
01/25/2036
199‌
188‌
1.00
x
1
Month
USD
LIBOR
+
0.34%
JP
Morgan
Mortgage
Trust
2016-2
2.82%,
06/25/2046
(e),(j)
341‌
352‌
JP
Morgan
Mortgage
Trust
2016-3
3.50%,
10/25/2046
(e),(j)
252‌
256‌
Sequoia
Mortgage
Trust
2016-3
3.50%,
11/25/2046
(e),(j)
748‌
764‌
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Series
2006-AR1
Trust
0.43%,
02/25/2036
67‌
54‌
1.00
x
1
Month
USD
LIBOR
+
0.25%
$
9,123‌
Office
&
Business
Equipment
-
0.02%
Xerox
Corp
4.12%,
03/15/2023
60‌
60‌
Oil
&
Gas
-
2.87%
Ascent
Resources
Utica
Holdings
LLC
/
ARU
Finance
Corp
7.00%,
11/01/2026
(e)
100‌
64‌
10.00%,
04/01/2022
(e)
78‌
66‌
BP
Capital
Markets
America
Inc
2.94%,
04/06/2023
790‌
835‌
3.19%,
04/06/2025
550‌
599‌
3.59%,
04/14/2027
175‌
193‌
4.23%,
11/06/2028
35‌
41‌
Canadian
Natural
Resources
Ltd
4.95%,
06/01/2047
65‌
72‌
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(d),(m),(n)
90‌
—‌
Chevron
Corp
2.00%,
05/11/2027
250‌
262‌
Comstock
Resources
Inc
7.50%,
05/15/2025
(e)
50‌
45‌
9.75%,
08/15/2026
170‌
158‌
Continental
Resources
Inc/OK
3.80%,
06/01/2024
605‌
566‌
4.90%,
06/01/2044
55‌
44‌
Ecopetrol
SA
6.88%,
04/29/2030
165‌
189‌
Endeavor
Energy
Resources
LP
/
EER
Finance
Inc
6.63%,
07/15/2025
(e)
80‌
81‌
EP
Energy
LLC
/
Everest
Acquisition
Finance
Inc
0.00%,
05/15/2026
(d),(e)
245‌
49‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
46
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Exxon
Mobil
Corp
2.02%,
08/16/2024
$
135‌
$
141‌
2.44%,
08/16/2029
105‌
111‌
3.00%,
08/16/2039
75‌
79‌
3.10%,
08/16/2049
30‌
31‌
Laredo
Petroleum
Inc
9.50%,
01/15/2025
55‌
38‌
10.13%,
01/15/2028
110‌
76‌
Marathon
Oil
Corp
4.40%,
07/15/2027
175‌
172‌
6.60%,
10/01/2037
225‌
233‌
MEG
Energy
Corp
6.50%,
01/15/2025
(e)
5‌
5‌
7.00%,
03/31/2024
(e)
105‌
90‌
7.13%,
02/01/2027
(e)
65‌
54‌
Nabors
Industries
Inc
5.00%,
09/15/2020
24‌
24‌
5.75%,
02/01/2025
220‌
89‌
Oasis
Petroleum
Inc
6.25%,
05/01/2026
(e)
125‌
21‌
6.88%,
01/15/2023
100‌
17‌
Occidental
Petroleum
Corp
2.60%,
08/13/2021
405‌
396‌
2.70%,
08/15/2022
55‌
51‌
2.90%,
08/15/2024
120‌
103‌
3.20%,
08/15/2026
110‌
89‌
3.40%,
04/15/2026
35‌
28‌
4.30%,
08/15/2039
75‌
52‌
4.40%,
04/15/2046
(f)
75‌
52‌
8.00%,
07/15/2025
(g)
85‌
85‌
Parsley
Energy
LLC
/
Parsley
Finance
Corp
5.63%,
10/15/2027
(e)
70‌
69‌
Petrobras
Global
Finance
BV
5.09%,
01/15/2030
(e)
91‌
91‌
5.30%,
01/27/2025
150‌
156‌
Petroleos
Mexicanos
6.50%,
01/23/2029
215‌
188‌
6.84%,
01/23/2030
(e)
105‌
92‌
Shelf
Drilling
Holdings
Ltd
8.25%,
02/15/2025
(e)
60‌
27‌
Shell
International
Finance
BV
3.13%,
11/07/2049
55‌
58‌
Sinopec
Group
Overseas
Development
2017
Ltd
2.50%,
09/13/2022
(e),(f)
325‌
333‌
SM
Energy
Co
5.00%,
01/15/2024
(f)
65‌
35‌
6.63%,
01/15/2027
95‌
47‌
Southwestern
Energy
Co
7.75%,
10/01/2027
(f)
185‌
161‌
Sunoco
LP
/
Sunoco
Finance
Corp
4.88%,
01/15/2023
45‌
44‌
5.50%,
02/15/2026
65‌
63‌
Total
Capital
International
SA
2.83%,
01/10/2030
100‌
109‌
3.46%,
07/12/2049
15‌
16‌
Valero
Energy
Corp
2.85%,
04/15/2025
525‌
554‌
WPX
Energy
Inc
4.50%,
01/15/2030
65‌
57‌
5.25%,
09/15/2024
10‌
10‌
5.25%,
10/15/2027
25‌
23‌
5.75%,
06/01/2026
20‌
19‌
5.88%,
06/15/2028
20‌
19‌
$
7,472‌
Other
Asset
Backed
Securities
-
0.67%
Verizon
Owner
Trust
2017-3
0.46%,
04/20/2022
(e)
520‌
520‌
1.00
x
1
Month
USD
LIBOR
+
0.27%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-1
2.82%,
09/20/2022
(e)
$
351‌
$
354‌
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
850‌
869‌
$
1,743‌
Packaging
&
Containers
-
0.45%
Ardagh
Packaging
Finance
PLC
/
Ardagh
Holdings
USA
Inc
6.00%,
02/15/2025
(e)
200‌
205‌
Bemis
Co
Inc
2.63%,
06/19/2030
185‌
190‌
Cascades
Inc/Cascades
USA
Inc
5.38%,
01/15/2028
(e)
40‌
41‌
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp
VI
4.75%,
02/01/2026
70‌
71‌
Crown
Cork
&
Seal
Co
Inc
7.38%,
12/15/2026
132‌
154‌
Flex
Acquisition
Co
Inc
6.88%,
01/15/2025
(e)
60‌
58‌
7.88%,
07/15/2026
(e)
40‌
39‌
Mauser
Packaging
Solutions
Holding
Co
7.25%,
04/15/2025
(e)
160‌
145‌
Reynolds
Group
Issuer
Inc
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
(Luxembourg)
S.A.
4.72%,
07/15/2021
(e)
40‌
40‌
3
Month
USD
LIBOR
+
3.50%
5.13%,
07/15/2023
(e)
155‌
156‌
WRKCo
Inc
3.00%,
06/15/2033
70‌
73‌
$
1,172‌
Pharmaceuticals
-
2.57%
AbbVie
Inc
2.60%,
11/21/2024
(e)
170‌
181‌
4.05%,
11/21/2039
(e)
45‌
53‌
Bausch
Health
Americas
Inc
8.50%,
01/31/2027
(e)
75‌
80‌
Bausch
Health
Cos
Inc
5.00%,
01/30/2028
(e)
40‌
38‌
Bayer
US
Finance
II
LLC
3.38%,
07/15/2024
(e)
135‌
146‌
3.88%,
12/15/2023
(e)
395‌
433‌
4.25%,
12/15/2025
(e)
400‌
459‌
4.38%,
12/15/2028
(e)
225‌
263‌
Becton
Dickinson
and
Co
2.89%,
06/06/2022
185‌
192‌
3.36%,
06/06/2024
200‌
216‌
3.70%,
06/06/2027
450‌
503‌
4.67%,
06/06/2047
115‌
141‌
4.69%,
12/15/2044
141‌
174‌
Bristol-Myers
Squibb
Co
4.13%,
06/15/2039
(e)
240‌
306‌
4.25%,
10/26/2049
(e)
195‌
257‌
Cigna
Corp
3.75%,
07/15/2023
213‌
231‌
4.38%,
10/15/2028
345‌
408‌
4.80%,
08/15/2038
165‌
209‌
4.90%,
12/15/2048
35‌
46‌
CVS
Health
Corp
3.63%,
04/01/2027
155‌
174‌
4.30%,
03/25/2028
140‌
164‌
4.88%,
07/20/2035
190‌
240‌
5.05%,
03/25/2048
35‌
46‌
Eli
Lilly
and
Co
4.15%,
03/15/2059
80‌
105‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
47
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Pfizer
Inc
2.55%,
05/28/2040
$
125‌
$
129‌
2.70%,
05/28/2050
95‌
98‌
Upjohn
Inc
1.65%,
06/22/2025
(e)
75‌
76‌
2.30%,
06/22/2027
(e)
110‌
113‌
Zoetis
Inc
3.25%,
02/01/2023
240‌
253‌
3.90%,
08/20/2028
575‌
677‌
4.45%,
08/20/2048
95‌
123‌
4.70%,
02/01/2043
120‌
158‌
$
6,692‌
Pipelines
-
2.24%
Abu
Dhabi
Crude
Oil
Pipeline
LLC
3.65%,
11/02/2029
(e)
200‌
223‌
Buckeye
Partners
LP
3.95%,
12/01/2026
120‌
113‌
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp
5.63%,
05/01/2027
(e)
135‌
113‌
Energy
Transfer
Operating
LP
3.75%,
05/15/2030
505‌
502‌
4.50%,
04/15/2024
390‌
423‌
5.15%,
03/15/2045
75‌
71‌
6.25%,
04/15/2049
85‌
90‌
Enterprise
Products
Operating
LLC
3.13%,
07/31/2029
50‌
54‌
3.95%,
01/31/2060
80‌
82‌
4.20%,
01/31/2050
155‌
173‌
5.38%,
02/15/2078
(h)
250‌
224‌
3
Month
USD
LIBOR
+
2.57%
Hess
Midstream
Operations
LP
5.63%,
02/15/2026
(e)
150‌
148‌
Kinder
Morgan
Energy
Partners
LP
4.70%,
11/01/2042
150‌
162‌
MPLX
LP
4.00%,
03/15/2028
55‌
58‌
4.88%,
12/01/2024
195‌
217‌
5.50%,
02/15/2049
125‌
139‌
NuStar
Logistics
LP
6.00%,
06/01/2026
120‌
116‌
6.75%,
02/01/2021
120‌
119‌
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
175‌
196‌
5.75%,
05/15/2024
1,325‌
1,492‌
Targa
Resources
Partners
LP
/
Targa
Resources
Partners
Finance
Corp
6.50%,
07/15/2027
176‌
176‌
Western
Midstream
Operating
LP
3.10%,
02/01/2025
365‌
346‌
Williams
Cos
Inc/The
4.55%,
06/24/2024
550‌
610‌
$
5,847‌
Real
Estate
-
0.03%
Cushman
&
Wakefield
US
Borrower
LLC
6.75%,
05/15/2028
(e)
65‌
68‌
REITs
-
1.62%
Alexandria
Real
Estate
Equities
Inc
3.45%,
04/30/2025
715‌
796‌
4.70%,
07/01/2030
110‌
135‌
American
Campus
Communities
Operating
Partnership
LP
3.88%,
01/30/2031
260‌
273‌
American
Tower
Corp
1.30%,
09/15/2025
185‌
186‌
3.10%,
06/15/2050
160‌
158‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
$
510‌
$
551‌
Crown
Castle
International
Corp
3.40%,
02/15/2021
350‌
355‌
CyrusOne
LP
/
CyrusOne
Finance
Corp
2.90%,
11/15/2024
295‌
309‌
Essex
Portfolio
LP
3.00%,
01/15/2030
240‌
262‌
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
6.00%,
04/15/2025
(e)
50‌
52‌
Healthcare
Trust
of
America
Holdings
LP
3.10%,
02/15/2030
235‌
237‌
Healthpeak
Properties
Inc
2.88%,
01/15/2031
165‌
169‌
Iron
Mountain
Inc
5.00%,
07/15/2028
(e)
45‌
44‌
Park
Intermediate
Holdings
LLC
/
PK
Domestic
Property
LLC
/
PK
Finance
Co-Issuer
7.50%,
06/01/2025
(e)
50‌
51‌
Prologis
LP
3.00%,
04/15/2050
100‌
106‌
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
185‌
178‌
VICI
Properties
LP
/
VICI
Note
Co
Inc
3.50%,
02/15/2025
(e)
55‌
52‌
Welltower
Inc
2.75%,
01/15/2031
320‌
320‌
$
4,234‌
Retail
-
0.17%
Home
Depot
Inc/The
3.30%,
04/15/2040
70‌
79‌
5.88%,
12/16/2036
60‌
90‌
IRB
Holding
Corp
6.75%,
02/15/2026
(e)
130‌
124‌
7.00%,
06/15/2025
(e)
15‌
15‌
L
Brands
Inc
6.88%,
07/01/2025
(e)
30‌
31‌
9.38%,
07/01/2025
(e)
25‌
25‌
Nordstrom
Inc
8.75%,
05/15/2025
(e)
15‌
16‌
Walmart
Inc
4.05%,
06/29/2048
10‌
13‌
Yum!
Brands
Inc
7.75%,
04/01/2025
(e)
50‌
54‌
$
447‌
Semiconductors
-
1.36%
Analog
Devices
Inc
2.95%,
04/01/2025
300‌
325‌
Applied
Materials
Inc
1.75%,
06/01/2030
440‌
450‌
Broadcom
Inc
3.15%,
11/15/2025
(e)
270‌
287‌
4.70%,
04/15/2025
(e)
525‌
591‌
Lam
Research
Corp
4.00%,
03/15/2029
120‌
143‌
4.88%,
03/15/2049
25‌
35‌
Microchip
Technology
Inc
4.25%,
09/01/2025
(e)
25‌
25‌
Micron
Technology
Inc
2.50%,
04/24/2023
270‌
281‌
NVIDIA
Corp
3.50%,
04/01/2040
95‌
111‌
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/15/2022
(e)
370‌
394‌
4.63%,
06/01/2023
(e)
400‌
439‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
48
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Semiconductors
(continued)
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70%,
05/01/2025
(e)
$
60‌
$
63‌
3.15%,
05/01/2027
(e)
60‌
64‌
Xilinx
Inc
2.38%,
06/01/2030
85‌
87‌
2.95%,
06/01/2024
225‌
241‌
$
3,536‌
Software
-
0.90%
Adobe
Inc
2.15%,
02/01/2027
120‌
129‌
2.30%,
02/01/2030
75‌
81‌
Epicor
Software
Corp
7.56%,
06/30/2023
(e)
10‌
10‌
3
Month
USD
LIBOR
+
7.25%
Fiserv
Inc
3.80%,
10/01/2023
200‌
219‌
4.40%,
07/01/2049
190‌
231‌
Intuit
Inc
1.35%,
07/15/2027
215‌
216‌
Microsoft
Corp
2.53%,
06/01/2050
30‌
31‌
2.68%,
06/01/2060
99‌
103‌
3.70%,
08/08/2046
120‌
149‌
Open
Text
Corp
3.88%,
02/15/2028
(e)
140‌
135‌
5.88%,
06/01/2026
(e)
80‌
83‌
Oracle
Corp
2.50%,
04/01/2025
255‌
273‌
2.80%,
04/01/2027
240‌
262‌
2.95%,
05/15/2025
100‌
109‌
4.00%,
11/15/2047
35‌
41‌
salesforce.com
Inc
3.70%,
04/11/2028
230‌
269‌
$
2,341‌
Sovereign
-
1.71%
Abu
Dhabi
Government
International
Bond
2.13%,
09/30/2024
(e)
200‌
206‌
CoBank
ACB
6.25%,
12/31/2049
(h),(i)
115‌
114‌
3
Month
USD
LIBOR
+
4.66%
Colombia
Government
International
Bond
3.00%,
01/30/2030
325‌
322‌
5.00%,
06/15/2045
200‌
226‌
Egypt
Government
International
Bond
5.58%,
02/21/2023
(e)
200‌
204‌
Honduras
Government
International
Bond
7.50%,
03/15/2024
200‌
216‌
Hungary
Government
International
Bond
5.38%,
02/21/2023
44‌
48‌
Indonesia
Government
International
Bond
5.38%,
10/17/2023
(e)
300‌
333‌
Israel
Government
International
Bond
2.75%,
07/03/2030
275‌
303‌
Mexico
Government
International
Bond
5.00%,
04/27/2051
200‌
216‌
Panama
Government
International
Bond
3.88%,
03/17/2028
200‌
225‌
Qatar
Government
International
Bond
3.25%,
06/02/2026
400‌
434‌
3.88%,
04/23/2023
(e)
200‌
214‌
4.40%,
04/16/2050
(e)
200‌
248‌
Russian
Foreign
Bond
-
Eurobond
5.10%,
03/28/2035
(e)
200‌
247‌
Saudi
Government
International
Bond
4.00%,
04/17/2025
(e)
600‌
665‌
Ukraine
Government
International
Bond
9.75%,
11/01/2028
(e)
200‌
228‌
$
4,449‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
-
0.62%
Navient
Student
Loan
Trust
2019-1
0.51%,
12/27/2067
(e)
$
126‌
$
126‌
1.00
x
1
Month
USD
LIBOR
+
0.33%
SMB
Private
Education
Loan
Trust
2020-A
0.48%,
03/15/2027
(e)
1,502‌
1,492‌
1.00
x
1
Month
USD
LIBOR
+
0.30%
$
1,618‌
Telecommunications
-
2.44%
AT&T
Inc
2.30%,
06/01/2027
230‌
238‌
2.75%,
06/01/2031
135‌
141‌
3.50%,
06/01/2041
215‌
225‌
3.88%,
01/15/2026
175‌
197‌
4.05%,
12/15/2023
425‌
472‌
4.30%,
02/15/2030
110‌
129‌
5.15%,
03/15/2042
135‌
169‌
5.35%,
09/01/2040
330‌
415‌
5.38%,
10/15/2041
130‌
163‌
5.45%,
03/01/2047
45‌
59‌
CenturyLink
Inc
4.00%,
02/15/2027
(e)
35‌
34‌
CommScope
Inc
8.25%,
03/01/2027
(e)
195‌
200‌
Embarq
Corp
8.00%,
06/01/2036
105‌
118‌
Level
3
Financing
Inc
4.25%,
07/01/2028
(e)
105‌
105‌
5.13%,
05/01/2023
30‌
30‌
Ooredoo
International
Finance
Ltd
3.88%,
01/31/2028
250‌
275‌
Rogers
Communications
Inc
3.70%,
11/15/2049
105‌
116‌
4.35%,
05/01/2049
50‌
61‌
Sprint
Communications
Inc
6.00%,
11/15/2022
75‌
79‌
Sprint
Corp
7.13%,
06/15/2024
120‌
135‌
7.63%,
03/01/2026
35‌
41‌
7.88%,
09/15/2023
180‌
203‌
Telecom
Italia
Capital
SA
6.38%,
11/15/2033
65‌
73‌
T-Mobile
USA
Inc
2.05%,
02/15/2028
(e)
220‌
220‌
3.50%,
04/15/2025
(e)
315‌
343‌
3.88%,
04/15/2030
(e)
255‌
284‌
4.00%,
04/15/2022
125‌
128‌
5.13%,
04/15/2025
200‌
205‌
Verizon
Communications
Inc
3.88%,
02/08/2029
270‌
319‌
4.50%,
08/10/2033
355‌
442‌
5.25%,
03/16/2037
260‌
348‌
Vodafone
Group
PLC
4.88%,
06/19/2049
215‌
271‌
Zayo
Group
Holdings
Inc
4.00%,
03/01/2027
(e)
80‌
76‌
6.13%,
03/01/2028
(e)
50‌
49‌
$
6,363‌
Transportation
-
0.21%
Eletson
Holdings
Inc
/
Eletson
Finance
US
LLC
/
Agathonissos
Finance
LLC
0.00%,
01/15/2022
(d),(m),(n)
121‌
23‌
Navios
Maritime
Acquisition
Corp
/
Navios
Acquisition
Finance
US
Inc
8.13%,
11/15/2021
(e)
200‌
113‌
Navios
Maritime
Holdings
Inc
/
Navios
Maritime
Finance
II
US
Inc
7.38%,
01/15/2022
(e)
55‌
23‌
11.25%,
08/15/2022
(e)
45‌
30‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
49
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Transportation
(continued)
Navios
South
American
Logistics
Inc
/
Navios
Logistics
Finance
US
Inc
7.25%,
05/01/2022
(e)
$
140‌
$
140‌
10.75%,
07/01/2025
(e),(g)
50‌
51‌
Union
Pacific
Corp
4.38%,
11/15/2065
60‌
75‌
Watco
Cos
LLC
/
Watco
Finance
Corp
6.50%,
06/15/2027
(e)
85‌
87‌
$
542‌
Trucking
&
Leasing
-
0.08%
DAE
Funding
LLC
4.50%,
08/01/2022
(e)
95‌
90‌
5.25%,
11/15/2021
(e)
25‌
25‌
5.75%,
11/15/2023
(e)
100‌
95‌
$
210‌
TOTAL
BONDS
$
159,600‌
SENIOR
FLOATING
RATE
INTERESTS
-
0.80%
Principal
Amount
(000's)
Value
(000's)
Automobile
Manufacturers
-
0.05%
Navistar
Inc
3.70%,
11/06/2024
(o)
$
124‌
$
117‌
3
Month
USD
LIBOR
+
3.00%
Commercial
Services
-
0.01%
Refinitiv
US
Holdings
Inc
3.43%,
10/01/2025
(o)
34‌
34‌
3
Month
USD
LIBOR
+
3.00%
Computers
-
0.07%
McAfee
LLC
9.50%,
09/29/2025
(o)
195‌
194‌
3
Month
USD
LIBOR
+
3.25%
Diversified
Financial
Services
-
0.07%
Russell
Investments
US
Institutional
Holdco
Inc
3.82%,
06/01/2023
(o)
188‌
182‌
1
Month
USD
LIBOR
+
2.75%
Electrical
Components
&
Equipment
-
0.01%
Energizer
Holdings
Inc
2.44%,
12/17/2025
(o)
35‌
33‌
1
Month
USD
LIBOR
+
4.50%
Entertainment
-
0.04%
Eldorado
Resorts
Inc
3.25%,
04/17/2024
(o)
56‌
56‌
3
Month
USD
LIBOR
+
3.00%
Lions
Gate
Capital
Holdings
LLC
2.43%,
03/24/2025
(o)
49‌
46‌
3
Month
USD
LIBOR
+
2.00%
$
102‌
Food
-
0.02%
Bellring
Brands
LLC
6.00%,
10/21/2024
(o)
54‌
53‌
1
Month
USD
LIBOR
+
5.00%
Forest
Products
&
Paper
-
0.03%
Pixelle
Specialty
Solutions
LLC
7.50%,
10/31/2024
(o)
79‌
74‌
1
Month
USD
LIBOR
+
6.50%
Insurance
-
0.11%
AssuredPartners
Inc
5.50%,
02/12/2027
(o)
100‌
98‌
1
Month
USD
LIBOR
+
4.50%
Asurion
LLC
3.18%,
11/03/2023
(o)
89‌
86‌
1
Month
USD
LIBOR
+
7.25%
6.68%,
08/04/2025
(o)
100‌
100‌
3
Month
USD
LIBOR
+
3.25%
$
284‌
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Lodging
-
0.05%
Golden
Nugget
LLC
3.25%,
10/04/2023
(o)
$
76‌
$
61‌
1
Month
USD
LIBOR
+
2.50%
Spectacle
Gary
Holdings
LLC
11.00%,
12/23/2025
(o)
70‌
65‌
1
Month
USD
LIBOR
+
9.00%
$
126‌
Media
-
0.03%
CSC
Holdings
LLC
2.68%,
04/15/2027
(o)
50‌
47‌
1
Month
USD
LIBOR
+
2.50%
Diamond
Sports
Group
LLC
3.43%,
08/24/2026
(o)
45‌
36‌
1
Month
USD
LIBOR
+
3.50%
$
83‌
Pharmaceuticals
-
0.18%
Bausch
Health
Americas
Inc
3.15%,
05/19/2025
(o)
273‌
265‌
3
Month
USD
LIBOR
+
7.50%
Endo
International
PLC
5.00%,
04/29/2024
(o)
212‌
200‌
3
Month
USD
LIBOR
+
4.00%
$
465‌
Pipelines
-
0.03%
Buckeye
Partners
LP
2.92%,
11/01/2026
(o)
85‌
81‌
1
Month
USD
LIBOR
+
2.75%
Retail
-
0.03%
IRB
Holding
Corp
2.76%,
02/05/2025
(o)
74‌
68‌
1
Month
USD
LIBOR
+
2.75%
Telecommunications
-
0.07%
Maxar
Technologies
Ltd
2.93%,
10/05/2024
(o)
104‌
97‌
3
Month
USD
LIBOR
+
4.25%
Zayo
Group
Holdings
Inc
3.18%,
02/19/2027
(o)
90‌
85‌
1
Month
USD
LIBOR
+
3.00%
$
182‌
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
2,078‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
41.11%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
3.53%
3.00%,
10/01/2042
$
46‌
$
50‌
3.00%,
11/01/2042
256‌
277‌
3.00%,
11/01/2042
47‌
50‌
3.00%,
03/01/2043
1,170‌
1,276‌
3.00%,
12/01/2046
112‌
119‌
3.00%,
01/01/2047
2,128‌
2,315‌
3.50%,
10/01/2041
41‌
45‌
3.50%,
04/01/2042
51‌
55‌
3.50%,
04/01/2042
103‌
112‌
3.50%,
04/01/2045
47‌
51‌
3.50%,
10/01/2045
792‌
866‌
3.50%,
03/01/2048
117‌
128‌
3.62%,
02/01/2037
8‌
8‌
1.00
x
12
Month
USD
LIBOR
+
1.63%
4.00%,
02/01/2045
23‌
24‌
4.00%,
02/01/2046
58‌
63‌
4.00%,
02/01/2046
359‌
386‌
4.00%,
06/01/2046
57‌
62‌
4.00%,
04/01/2047
304‌
328‌
4.00%,
11/01/2047
521‌
557‌
4.50%,
07/01/2024
10‌
10‌
4.50%,
10/01/2041
32‌
35‌
4.50%,
12/01/2043
801‌
892‌
4.50%,
03/01/2046
264‌
300‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
50
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
5.00%,
06/01/2031
$
79‌
$
89‌
5.00%,
10/01/2035
29‌
33‌
5.00%,
06/01/2041
755‌
854‌
6.00%,
06/01/2032
19‌
22‌
6.00%,
10/01/2032
10‌
12‌
6.00%,
01/01/2038
48‌
57‌
6.50%,
03/01/2029
2‌
3‌
6.50%,
05/01/2029
4‌
4‌
6.50%,
04/01/2031
2‌
2‌
6.50%,
02/01/2032
4‌
4‌
6.50%,
05/01/2032
3‌
4‌
6.50%,
04/01/2035
7‌
8‌
7.00%,
12/01/2029
10‌
11‌
7.00%,
06/01/2030
3‌
4‌
7.00%,
12/01/2030
1‌
1‌
7.00%,
01/01/2031
2‌
2‌
7.00%,
12/01/2031
29‌
30‌
7.50%,
04/01/2030
1‌
1‌
7.50%,
03/01/2031
7‌
8‌
8.00%,
09/01/2030
31‌
32‌
$
9,190‌
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
17.51%
2.00%,
07/01/2035
(p)
650‌
672‌
2.00%,
07/01/2050
(p)
500‌
512‌
2.50%,
07/01/2035
(p)
2,000‌
2,094‌
2.50%,
07/01/2050
(p)
3,950‌
4,118‌
3.00%,
03/01/2034
244‌
260‌
3.00%,
07/01/2035
(p)
4,000‌
4,204‌
3.00%,
03/01/2042
82‌
88‌
3.00%,
03/01/2042
76‌
81‌
3.00%,
05/01/2042
43‌
46‌
3.00%,
06/01/2042
78‌
83‌
3.00%,
06/01/2042
38‌
41‌
3.00%,
05/01/2043
158‌
171‌
3.00%,
07/01/2050
(p)
8,450‌
8,900‌
3.50%,
04/01/2030
289‌
306‌
3.50%,
05/01/2034
1,261‌
1,361‌
3.50%,
08/01/2034
302‌
320‌
3.50%,
12/01/2040
59‌
63‌
3.50%,
01/01/2041
35‌
38‌
3.50%,
12/01/2041
18‌
19‌
3.50%,
03/01/2042
32‌
35‌
3.50%,
04/01/2042
65‌
70‌
3.50%,
11/01/2042
875‌
971‌
3.50%,
02/01/2043
42‌
46‌
3.50%,
07/01/2043
736‌
808‌
3.50%,
01/01/2044
229‌
251‌
3.50%,
11/01/2044
1,479‌
1,615‌
3.50%,
03/01/2045
51‌
56‌
3.50%,
06/01/2045
97‌
106‌
3.50%,
11/01/2045
63‌
68‌
3.50%,
05/01/2046
52‌
55‌
3.50%,
08/01/2047
1,493‌
1,657‌
3.50%,
10/01/2047
1,502‌
1,656‌
3.50%,
11/01/2047
662‌
724‌
3.50%,
01/01/2048
480‌
527‌
3.50%,
03/01/2048
980‌
1,070‌
3.50%,
04/01/2048
1,302‌
1,422‌
4.00%,
08/01/2020
1‌
1‌
4.00%,
03/01/2034
352‌
387‌
4.00%,
09/01/2040
77‌
86‌
4.00%,
05/01/2041
167‌
183‌
4.00%,
10/01/2041
41‌
45‌
4.00%,
10/01/2041
27‌
30‌
4.00%,
11/01/2041
38‌
42‌
4.00%,
04/01/2042
25‌
28‌
4.00%,
11/01/2043
34‌
37‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.00%,
11/01/2043
$
95‌
$
106‌
4.00%,
02/01/2044
112‌
123‌
4.00%,
06/01/2044
239‌
263‌
4.00%,
09/01/2044
30‌
32‌
4.00%,
09/01/2045
102‌
113‌
4.00%,
12/01/2045
590‌
639‌
4.00%,
08/01/2046
79‌
86‌
4.00%,
01/01/2047
54‌
58‌
4.00%,
04/01/2047
315‌
344‌
4.00%,
05/01/2047
701‌
750‌
4.00%,
11/01/2047
1,707‌
1,865‌
4.00%,
05/01/2048
159‌
170‌
4.00%,
10/01/2048
1,284‌
1,371‌
4.00%,
10/01/2048
394‌
436‌
4.00%,
01/01/2049
267‌
285‌
4.50%,
07/01/2025
30‌
32‌
4.50%,
08/01/2040
46‌
51‌
4.50%,
11/01/2040
683‌
750‌
4.50%,
12/01/2040
29‌
32‌
4.50%,
08/01/2041
32‌
36‌
4.50%,
09/01/2041
216‌
241‌
4.50%,
05/01/2044
35‌
39‌
4.50%,
12/01/2044
87‌
95‌
4.50%,
06/01/2046
39‌
42‌
4.50%,
05/01/2047
26‌
29‌
4.50%,
05/01/2047
92‌
100‌
4.50%,
05/01/2049
269‌
290‌
5.00%,
10/01/2041
153‌
175‌
5.00%,
06/01/2048
364‌
412‌
5.50%,
12/01/2022
7‌
8‌
5.50%,
07/01/2033
200‌
229‌
5.50%,
04/01/2035
22‌
25‌
5.50%,
08/01/2036
433‌
498‌
5.50%,
02/01/2037
3‌
4‌
5.50%,
05/01/2040
40‌
45‌
6.00%,
05/01/2031
2‌
2‌
6.00%,
07/01/2035
124‌
144‌
6.00%,
02/01/2037
78‌
87‌
6.00%,
02/01/2038
46‌
54‌
6.50%,
03/01/2032
3‌
3‌
6.50%,
07/01/2037
14‌
16‌
6.50%,
07/01/2037
29‌
35‌
6.50%,
02/01/2038
33‌
39‌
6.50%,
03/01/2038
7‌
8‌
6.50%,
09/01/2038
106‌
123‌
$
45,638‌
Government
National
Mortgage
Association
(GNMA)
-
7.19%
2.50%,
07/01/2050
1,500‌
1,579‌
3.00%,
02/15/2043
311‌
332‌
3.00%,
07/20/2044
436‌
466‌
3.00%,
01/20/2046
338‌
360‌
3.00%,
07/20/2046
542‌
577‌
3.00%,
12/20/2046
1,483‌
1,576‌
3.00%,
07/01/2050
4,200‌
4,450‌
3.50%,
04/20/2046
183‌
199‌
3.50%,
10/20/2046
278‌
297‌
3.50%,
07/20/2047
1,119‌
1,205‌
3.50%,
07/01/2050
3,000‌
3,166‌
4.00%,
02/15/2042
115‌
127‌
4.00%,
06/20/2046
72‌
77‌
4.00%,
01/20/2048
1,891‌
2,074‌
4.50%,
09/15/2039
522‌
597‌
4.50%,
11/15/2040
95‌
107‌
4.50%,
06/20/2048
26‌
28‌
5.00%,
02/15/2034
188‌
215‌
5.00%,
10/15/2034
68‌
78‌
5.00%,
10/20/2039
35‌
40‌
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
51
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
5.00%,
07/20/2040
$
16‌
$
17‌
5.00%,
02/15/2042
79‌
91‌
5.50%,
12/20/2033
93‌
107‌
5.50%,
05/20/2035
10‌
12‌
5.50%,
12/20/2048
465‌
506‌
6.00%,
01/20/2029
17‌
19‌
6.00%,
07/20/2029
3‌
3‌
6.00%,
12/15/2033
21‌
24‌
6.00%,
12/20/2036
49‌
57‌
6.50%,
03/20/2028
3‌
3‌
6.50%,
05/20/2029
3‌
3‌
6.50%,
12/15/2032
282‌
324‌
7.00%,
03/15/2031
6‌
6‌
7.50%,
05/15/2029
13‌
13‌
8.00%,
12/15/2030
6‌
7‌
$
18,742‌
U.S.
Treasury
-
9.80%
1.50%,
08/15/2026
1,420‌
1,513‌
1.63%,
08/15/2029
2,500‌
2,728‌
3.00%,
05/15/2045
3,140‌
4,216‌
3.00%,
11/15/2045
(q)
2,000‌
2,696‌
3.13%,
05/15/2048
5,950‌
8,339‌
3.75%,
11/15/2043
1,650‌
2,455‌
4.75%,
02/15/2037
2,260‌
3,604‌
$
25,551‌
U.S.
Treasury
Bill
-
3.08%
0.09%,
07/02/2020
(r)
800‌
800‌
0.11%,
07/30/2020
(r)
810‌
810‌
0.12%,
09/17/2020
(r)
6,420‌
6,418‌
$
8,028‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
107,149‌
Total
Investments
$
288,474‌
Other
Assets
and
Liabilities
-  (10.68)%
(27,825‌)
TOTAL
NET
ASSETS
-
100.00%
$
260,649‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,123
or
0.43%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$44,564
or
17.10%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(g)
Security
purchased
on
a
when-issued
basis.
(h)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(i)
Perpetual
security.
Perpetual
securities
pay
an
indefinite
stream
of
interest,
but
they
may
be
called
by
the
issuer
at
an
earlier
date.
Date
shown,
if
any,
reflects
the
next
call
date
or
final
legal
maturity
date.
Rate
shown
is
as
of
period
end.
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Security
is
an
Interest
Only
Strip.
(l)
Payment
in
kind;
the
issuer
has
the
option
of
paying
additional
securities
in
lieu
of
cash.
(m)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(n)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$23
or
0.01%
of
net
assets.
(o)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
(p)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.  See
Notes
to
Financial
Statements
for
additional
information.
(q)
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
$852
or
0.33%
of
net
assets.
(r)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary  (unaudited)
Sector
Percent
Mortgage
Securities
33.69‌%
Financial
14.92‌%
Government
14.59‌%
Consumer,
Non-cyclical
6.95‌%
Communications
5.87‌%
Asset
Backed
Securities
5.69‌%
Energy
5.14‌%
Investment
Companies
4.36‌%
Utilities
3.84‌%
Industrial
3.59‌%
Consumer,
Cyclical
3.33‌%
Technology
3.21‌%
Money
Market
Funds
3.18‌%
Basic
Materials
2.32‌%
Other
Assets
and
Liabilities
(10.68‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
11,648‌
$
110,575‌
$
115,054‌
$
7,169‌
$
11,648‌
$
110,575‌
$
115,054‌
$
7,169‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
36‌
$
—‌
$
—‌
$
—‌
$
36‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Core
Plus
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
52
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
September
2020
Long
32‌
$
4,454‌
$
11‌
US
10
Year
Ultra
Note;
September
2020
Short
5‌
787‌
(3‌)
US
2
Year
Note;
September
2020
Long
9‌
1,987‌
—‌
US
5
Year
Note;
September
2020
Short
26‌
3,269‌
(7‌)
US
Long
Bond;
September
2020
Long
13‌
2,321‌
7‌
Total
$
8‌
Amounts
in
thousands
except
contracts.
Exchange
Cleared
Credit
Default
Swaps
Buy
Protection
Reference
Entity
Implied
Credit
Spread
as
of
June
30,
2020
(a)
(Pay)/
Receive
Fixed
Rate
Payment
Frequency
Maturity
Date
Notional
Amount
Upfront
Payments/
(Receipts)
Unrealized
Appreciation/
(Depreciation)
Fair
Value
CDX.EM.32
N/A
(1.00)%
Quarterly
12/20/2024
$
6,045‌
$
366‌
$
(149‌)
$
217‌
Total
$
366‌
$
(149‌)
$
217‌
Amounts
in
thousands.
(a)
Implied
credit
spreads,
represented
in
absolute
terms,
used
in
determining
the
market
value
of
credit
default
swap
agreements
on
corporate
issues
or
sovereign
issues
as
of
period
end
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
buying/selling
protection
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
Wider
credit
spreads
represent
a
deterioration
of
the
referenced
entity's
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
Schedule
of
Investments
Diversified
International
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
53
INVESTMENT
COMPANIES
-
1.60%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.60%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
3,079,357‌
$
3,0
79‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
623,410‌
623‌
$
3,70
2‌
TOTAL
INVESTMENT
COMPANIES
$
3,70
2‌
COMMON
STOCKS
-
99.09%
Shares
Held
Value
(000's)
Apparel
-
1.62%
Adidas
AG
(d)
4,141‌
$
1,092‌
boohoo
Group
PLC
(d)
73,502‌
377‌
LVMH
Moet
Hennessy
Louis
Vuitton
SE
5,215‌
2,302‌
$
3,771‌
Automobile
Manufacturers
-
3.74%
Ferrari
NV
9,265‌
1,587‌
Honda
Motor
Co
Ltd
37,300‌
955‌
Kia
Motors
Corp
22,088‌
597‌
Maruti
Suzuki
India
Ltd
12,609‌
976‌
Toyota
Motor
Corp
59,200‌
3,723‌
Volvo
AB
-
B
Shares
(d)
54,536‌
858‌
$
8,696‌
Automobile
Parts
&
Equipment
-
0.61%
Toyota
Industries
Corp
26,500‌
1,409‌
Banks
-
6.08%
Bank
Leumi
Le-Israel
BM
186,004‌
935‌
Canadian
Imperial
Bank
of
Commerce
15,200‌
1,016‌
Credicorp
Ltd
9,318‌
1,246‌
DBS
Group
Holdings
Ltd
123,200‌
1,854‌
DNB
ASA
(d)
92,415‌
1,233‌
Erste
Group
Bank
AG
(d)
29,622‌
700‌
Grupo
Financiero
Banorte
SAB
de
CV
(d)
214,059‌
741‌
HDFC
Bank
Ltd
ADR
15,362‌
698‌
ICICI
Bank
Ltd
ADR
52,858‌
491‌
Kotak
Mahindra
Bank
Ltd
27,147‌
490‌
Mediobanca
Banca
di
Credito
Finanziario
SpA
133,003‌
960‌
PT
Bank
Central
Asia
Tbk
644,400‌
1,289‌
Toronto-Dominion
Bank/The
40,500‌
1,808‌
United
Overseas
Bank
Ltd
44,300‌
647‌
$
14,108‌
Beverages
-
0.62%
Carlsberg
A/S
10,880‌
1,443‌
Biotechnology
-
1.23%
CSL
Ltd
14,339‌
2,852‌
Building
Materials
-
1.63%
Anhui
Conch
Cement
Co
Ltd
75,598‌
568‌
China
Lesso
Group
Holdings
Ltd
332,000‌
436‌
Cie
de
Saint-Gobain
(d)
24,203‌
873‌
CRH
PLC
44,763‌
1,541‌
HeidelbergCement
AG
6,757‌
362‌
$
3,780‌
Chemicals
-
1.69%
BASF
SE
18,435‌
1,035‌
Evonik
Industries
AG
30,352‌
773‌
Koninklijke
DSM
NV
10,270‌
1,426‌
Nutrien
Ltd
21,200‌
681‌
$
3,915‌
Commercial
Services
-
1.60%
Adecco
Group
AG
13,677‌
645‌
Adyen
NV
(d),(e)
899‌
1,310‌
Aggreko
PLC
19,611‌
108‌
Dai
Nippon
Printing
Co
Ltd
31,300‌
720‌
New
Oriental
Education
&
Technology
Group
Inc
ADR
(d)
7,184‌
935‌
$
3,718‌
Computers
-
2.64%
Capgemini
SE
12,047‌
1,390‌
Logitech
International
SA
38,994‌
2,555‌
Nomura
Research
Institute
Ltd
40,200‌
1,098‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
(continued)
Obic
Co
Ltd
6,200‌
$
1,093‌
$
6,136‌
Consumer
Products
-
0.47%
Hindustan
Unilever
Ltd
38,019‌
1,099‌
Cosmetics
&
Personal
Care
-
0.42%
Unilever
NV
18,291‌
975‌
Distribution
&
Wholesale
-
2.12%
Bunzl
PLC
19,840‌
532‌
Ferguson
PLC
22,964‌
1,877‌
ITOCHU
Corp
89,000‌
1,926‌
Mitsubishi
Corp
28,100‌
594‌
$
4,929‌
Diversified
Financial
Services
-
2.08%
Housing
Development
Finance
Corp
Ltd
51,518‌
1,198‌
KB
Financial
Group
Inc
27,651‌
783‌
London
Stock
Exchange
Group
PLC
8,309‌
864‌
ORIX
Corp
129,600‌
1,609‌
Tisco
Financial
Group
PCL
164,300‌
371‌
$
4,825‌
Electric
-
2.35%
Enel
SpA
275,388‌
2,382‌
Iberdrola
SA
217,668‌
2,541‌
Northland
Power
Inc
21,400‌
536‌
$
5,459‌
Electrical
Components
&
Equipment
-
0.43%
Delta
Electronics
Inc
173,000‌
987‌
Electronics
-
1.55%
Halma
PLC
33,563‌
956‌
Hoya
Corp
27,496‌
2,633‌
$
3,589‌
Energy
-
Alternate
Sources
-
0.68%
Vestas
Wind
Systems
A/S
15,515‌
1,589‌
Entertainment
-
0.29%
Flutter
Entertainment
PLC
5,030‌
664‌
Food
-
4.13%
Dino
Polska
SA
(d),(e)
2,700‌
137‌
Koninklijke
Ahold
Delhaize
NV
35,625‌
971‌
Nestle
India
Ltd
3,021‌
686‌
Nestle
SA
49,877‌
5,530‌
Seven
&
i
Holdings
Co
Ltd
22,700‌
743‌
Uni
-President
Enterprises
Corp
630,000‌
1,526‌
$
9,593‌
Forest
Products
&
Paper
-
0.43%
Mondi
PLC
53,905‌
1,008‌
Hand
&
Machine
Tools
-
1.28%
Amada
Co
Ltd
72,200‌
591‌
Techtronic
Industries
Co
Ltd
240,500‌
2,380‌
$
2,971‌
Healthcare
-
Products
-
1.68%
Ambu
A/S
14,094‌
445‌
Carl
Zeiss
Meditec
AG
4,176‌
407‌
GN
Store
Nord
A/S
8,486‌
454‌
Koninklijke
Philips
NV
(d)
37,475‌
1,751‌
Sartorius
Stedim
Biotech
3,333‌
845‌
$
3,902‌
Healthcare
-
Services
-
1.81%
ICON
PLC
(d)
10,518‌
1,772‌
Lonza
Group
AG
4,607‌
2,440‌
$
4,212‌
Home
Builders
-
1.01%
Persimmon
PLC
46,402‌
1,313‌
Taylor
Wimpey
PLC
583,293‌
1,030‌
$
2,343‌
Home
Furnishings
-
1.50%
Howden
Joinery
Group
PLC
135,999‌
931‌
Sony
Corp
36,800‌
2,540‌
$
3,471‌
Schedule
of
Investments
Diversified
International
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
54
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
6.44%
AIA
Group
Ltd
196,800‌
$
1,842‌
ASR
Nederland
NV
24,394‌
751‌
AXA
SA
(f)
72,918‌
1,534‌
BB
Seguridade
Participacoes
SA
110,431‌
560‌
Fairfax
Financial
Holdings
Ltd
2,800‌
865‌
Hannover
Rueck
SE
9,136‌
1,579‌
ICICI
Lombard
General
Insurance
Co
Ltd
(e)
29,369‌
493‌
Legal
&
General
Group
PLC
515,727‌
1,406‌
NN
Group
NV
26,200‌
881‌
PICC
Property
&
Casualty
Co
Ltd
692,000‌
575‌
Prudential
PLC
84,619‌
1,275‌
Sompo
Holdings
Inc
30,100‌
1,036‌
Tokio
Marine
Holdings
Inc
37,700‌
1,650‌
Unipol
Gruppo
SpA
(d)
130,134‌
508‌
$
14,955‌
Internet
-
7.62%
Alibaba
Group
Holding
Ltd
ADR
(d)
11,958‌
2,579‌
Alibaba
Group
Holding
Ltd
(d)
101,736‌
2,645‌
MercadoLibre
Inc
(d)
681‌
671‌
Naspers
Ltd
8,709‌
1,601‌
NCSoft
Corp
836‌
622‌
Shopify
Inc
(d)
2,346‌
2,227‌
Tencent
Holdings
Ltd
91,993‌
5,895‌
Vipshop
Holdings
Ltd
ADR
(d)
72,794‌
1,449‌
$
17,689‌
Investment
Companies
-
0.34%
Kinnevik
AB
29,824‌
787‌
Machinery
-
Construction
&
Mining
-
0.53%
Komatsu
Ltd
59,600‌
1,221‌
Machinery
-
Diversified
-
1.55%
Daifuku
Co
Ltd
7,000‌
613‌
Keyence
Corp
4,000‌
1,676‌
Miura
Co
Ltd
10,800‌
450‌
Valmet
Oyj
33,058‌
867‌
$
3,606‌
Metal
Fabrication
&
Hardware
-
1.04%
NSK
Ltd
69,300‌
517‌
SKF
AB
101,791‌
1,903‌
$
2,420‌
Mining
-
2.40%
Franco-Nevada
Corp
12,901‌
1,802‌
MMC
Norilsk
Nickel
PJSC
ADR
39,666‌
1,044‌
Rio
Tinto
Ltd
39,764‌
2,723‌
$
5,569‌
Miscellaneous
Manufacturers
-
1.65%
JSR
Corp
36,800‌
714‌
Pidilite
Industries
Ltd
30,656‌
557‌
Siemens
AG
16,039‌
1,892‌
Trelleborg
AB
(d)
46,082‌
676‌
$
3,839‌
Oil
&
Gas
-
3.07%
LUKOIL
PJSC
ADR
15,043‌
1,118‌
Neste
Oyj
63,955‌
2,512‌
Parkland
Corp/Canada
20,600‌
512‌
Petrobras
Distribuidora
SA
111,700‌
441‌
Reliance
Industries
Ltd
67,783‌
1,542‌
Suncor
Energy
Inc
59,100‌
996‌
$
7,121‌
Pharmaceuticals
-
5.30%
Galapagos
NV
(d)
3,530‌
697‌
Novartis
AG
37,514‌
3,268‌
Novo
Nordisk
A/S
42,545‌
2,772‌
Roche
Holding
AG
16,101‌
5,578‌
$
12,315‌
Pipelines
-
1.46%
Pembina
Pipeline
Corp
70,500‌
1,763‌
TC
Energy
Corp
38,300‌
1,636‌
$
3,399‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Private
Equity
-
2.47%
3i
Group
PLC
225,576‌
$
2,323‌
Brookfield
Asset
Management
Inc
79,469‌
2,615‌
Intermediate
Capital
Group
PLC
49,460‌
789‌
$
5,727‌
Real
Estate
-
1.53%
CK
Asset
Holdings
Ltd
164,500‌
987‌
PSP
Swiss
Property
AG
823‌
93‌
Sun
Hung
Kai
Properties
Ltd
61,000‌
779‌
Tokyo
Tatemono
Co
Ltd
(f)
37,900‌
436‌
Vonovia
SE
20,652‌
1,262‌
$
3,557‌
Retail
-
4.42%
Alimentation
Couche-Tard
Inc
86,246‌
2,704‌
ANTA
Sports
Products
Ltd
85,000‌
756‌
Hennes
&
Mauritz
AB
41,234‌
602‌
Home
Product
Center
PCL
1,333,500‌
670‌
JD
Sports
Fashion
PLC
109,002‌
839‌
Li
Ning
Co
Ltd
263,000‌
842‌
Lojas
Renner
SA
21,500‌
167‌
Magazine
Luiza
SA
46,500‌
614‌
Pan
Pacific
International
Holdings
Corp
85,900‌
1,891‌
Wal-Mart
de
Mexico
SAB
de
CV
495,022‌
1,184‌
$
10,269‌
Semiconductors
-
8.16%
ASML
Holding
NV
10,696‌
3,913‌
MediaTek
Inc
44,000‌
870‌
NXP
Semiconductors
NV
16,012‌
1,826‌
Samsung
Electronics
Co
Ltd
105,075‌
4,651‌
SK
Hynix
Inc
24,592‌
1,756‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
555,140‌
5,929‌
$
18,945‌
Software
-
1.65%
Capcom
Co
Ltd
26,800‌
981‌
Dassault
Systemes
SE
8,014‌
1,391‌
Nemetschek
SE
9,246‌
635‌
NetEase
Inc
48,300‌
833‌
$
3,840‌
Telecommunications
-
3.84%
Deutsche
Telekom
AG
81,705‌
1,371‌
Nice
Ltd
ADR
(d)
9,031‌
1,709‌
Nippon
Telegraph
&
Telephone
Corp
103,000‌
2,400‌
Orange
SA
68,999‌
825‌
SoftBank
Group
Corp
52,000‌
2,622‌
$
8,927‌
Toys,
Games
&
Hobbies
-
0.96%
Nintendo
Co
Ltd
5,000‌
2,235‌
Transportation
-
0.97%
Canadian
National
Railway
Co
25,428‌
2,250‌
TOTAL
COMMON
STOCKS
$
230,115‌
PREFERRED
STOCKS
-
0.44%
Shares
Held
Value
(000's)
Investment
Companies
-
0.24%
Itausa
SA
0.08%
317,046‌
$
563‌
Telecommunications
-
0.20%
Telefonica
Brasil
SA
2.68%
51,500‌
458‌
TOTAL
PREFERRED
STOCKS
$
1,021‌
Total
Investments
$
234,83
8‌
Other
Assets
and
Liabilities
-  (1.13)%
(2,61
4‌
)
TOTAL
NET
ASSETS
-
100.00%
$
232,224‌
Schedule
of
Investments
Diversified
International
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
55
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$3,079
or
1.33%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,940
or
0.84%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Location
Percent
Japan
16.39‌%
Canada
9.22‌%
Switzerland
8.66‌%
United
Kingdom
8.32‌%
China
7.54‌%
Netherlands
5.53‌%
Germany
4.48‌%
Taiwan
4.01‌%
France
3.94‌%
Korea,
Republic
Of
3.63‌%
India
3.54‌%
Denmark
2.88‌%
Hong
Kong
2.58‌%
Italy
2.34‌%
Sweden
2.08‌%
Ireland
1.71‌%
United
States
1.60‌%
Finland
1.45‌%
Australia
1.23‌%
Brazil
1.21‌%
Israel
1.14‌%
Spain
1.09‌%
Singapore
1.08‌%
Russian
Federation
0.93‌%
Mexico
0.83‌%
South
Africa
0.69‌%
Indonesia
0.56‌%
Peru
0.54‌%
Norway
0.53‌%
Thailand
0.45‌%
Austria
0.30‌%
Belgium
0.30‌%
Argentina
0.29‌%
Poland
0.06‌%
Other
Assets
and
Liabilities
(1.13‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,370‌
$
22,550‌
$
24,297‌
$
623‌
$
2,370‌
$
22,550‌
$
24,297‌
$
623‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
8‌
$
—‌
$
—‌
$
—‌
$
8‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Equity
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
56
INVESTMENT
COMPANIES
-
2.11%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.11%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
13,744,455‌
$
13,74
5‌
TOTAL
INVESTMENT
COMPANIES
$
13,74
5‌
COMMON
STOCKS
-
97.69%
Shares
Held
Value
(000's)
Apparel
-
1.53%
NIKE
Inc
101,456‌
$
9,948‌
Automobile
Manufacturers
-
2.40%
PACCAR
Inc
209,302‌
15,666‌
Automobile
Parts
&
Equipment
-
1.61%
Magna
International
Inc
236,290‌
10,522‌
Banks
-
9.09%
First
Republic
Bank/CA
106,007‌
11,236‌
JPMorgan
Chase
&
Co
174,755‌
16,437‌
Morgan
Stanley
165,817‌
8,009‌
PNC
Financial
Services
Group
Inc
/The
109,353‌
11,505‌
Truist
Financial
Corp
148,659‌
5,582‌
US
Bancorp
176,770‌
6,509‌
$
59,278‌
Beverages
-
1.87%
Coca-Cola
Co/The
272,189‌
12,161‌
Biotechnology
-
1.24%
Corteva
Inc
301,352‌
8,073‌
Chemicals
-
2.66%
Air
Products
and
Chemicals
Inc
39,559‌
9,552‌
PPG
Industries
Inc
73,640‌
7,810‌
$
17,362‌
Computers
-
1.80%
Apple
Inc
32,161‌
11,732‌
Diversified
Financial
Services
-
4.36%
BlackRock
Inc
33,463‌
18,207‌
Discover
Financial
Services
203,758‌
10,206‌
$
28,413‌
Electric
-
6.48%
Eversource
Energy
99,530‌
8,288‌
NextEra
Energy
Inc
40,627‌
9,757‌
Sempra
Energy
48,857‌
5,728‌
WEC
Energy
Group
Inc
109,948‌
9,637‌
Xcel
Energy
Inc
141,532‌
8,846‌
$
42,256‌
Electronics
-
0.81%
Honeywell
International
Inc
36,612‌
5,294‌
Food
-
3.95%
Hormel
Foods
Corp
309,617‌
14,945‌
Tyson
Foods
Inc
180,781‌
10,795‌
$
25,740‌
Healthcare
-
Products
-
4.53%
Abbott
Laboratories
178,549‌
16,325‌
Medtronic
PLC
143,814‌
13,188‌
$
29,513‌
Insurance
-
4.75%
Allstate
Corp/The
30,685‌
2,976‌
Chubb
Ltd
90,990‌
11,521‌
Fidelity
National
Financial
Inc
273,608‌
8,389‌
Swiss
Re
AG
ADR
419,860‌
8,083‌
$
30,969‌
Machinery
-
Diversified
-
2.47%
Deere
&
Co
102,418‌
16,095‌
Media
-
2.51%
Walt
Disney
Co/The
146,490‌
16,335‌
Miscellaneous
Manufacturers
-
2.61%
3M
Co
16,061‌
2,505‌
Parker-Hannifin
Corp
79,080‌
14,493‌
$
16,998‌
Oil
&
Gas
-
5.01%
Chevron
Corp
103,385‌
9,225‌
EOG
Resources
Inc
165,110‌
8,364‌
Exxon
Mobil
Corp
53,075‌
2,374‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Oil
&
Gas
(continued)
Marathon
Petroleum
Corp
238,411‌
$
8,912‌
Royal
Dutch
Shell
PLC
-
B
shares
ADR
123,322‌
3,755‌
$
32,630‌
Pharmaceuticals
-
9.62%
Becton
Dickinson
and
Co
49,898‌
11,939‌
Merck
&
Co
Inc
187,548‌
14,503‌
Novartis
AG
ADR
120,358‌
10,512‌
Pfizer
Inc
275,052‌
8,994‌
Roche
Holding
AG
ADR
385,993‌
16,745‌
$
62,693‌
Pipelines
-
1.34%
Enterprise
Products
Partners
LP
479,811‌
8,718‌
Private
Equity
-
2.21%
KKR
&
Co
Inc
467,066‌
14,423‌
REITs
-
5.19%
Alexandria
Real
Estate
Equities
Inc
75,730‌
12,287‌
Digital
Realty
Trust
Inc
94,490‌
13,428‌
Realty
Income
Corp
136,192‌
8,104‌
$
33,819‌
Retail
-
3.63%
Costco
Wholesale
Corp
54,923‌
16,653‌
Starbucks
Corp
95,128‌
7,001‌
$
23,654‌
Semiconductors
-
3.27%
Microchip
Technology
Inc
108,133‌
11,388‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
175,188‌
9,945‌
$
21,333‌
Software
-
3.68%
Fidelity
National
Information
Services
Inc
56,639‌
7,595‌
Microsoft
Corp
39,910‌
8,122‌
SAP
SE
ADR
58,951‌
8,253‌
$
23,970‌
Telecommunications
-
5.19%
BCE
Inc
383,238‌
16,008‌
Verizon
Communications
Inc
323,680‌
17,844‌
$
33,852‌
Toys,
Games
&
Hobbies
-
1.89%
Hasbro
Inc
164,194‌
12,306‌
Transportation
-
1.99%
Union
Pacific
Corp
76,869‌
12,99
5‌
TOTAL
COMMON
STOCKS
$
636,74
8‌
Total
Investments
$
650,493‌
Other
Assets
and
Liabilities
-  0.20%
1,315‌
TOTAL
NET
ASSETS
-
100.00%
$
651,808‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Schedule
of
Investments
Equity
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
57
Portfolio
Summary  (unaudited)
Sector
Percent
Financial
25.60‌%
Consumer,
Non-cyclical
21.21‌%
Consumer,
Cyclical
11.06‌%
Technology
8.75‌%
Industrial
7.88‌%
Communications
7.70‌%
Utilities
6.48‌%
Energy
6.35‌%
Basic
Materials
2.66‌%
Money
Market
Funds
2.11‌%
Other
Assets
and
Liabilities
0.20‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
14,848‌
$
99,84
6‌
$
100,949‌
$
13,74
5‌
$
14,848‌
$
99,84
6‌
$
100,949‌
$
13,74
5‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
58‌
$
—‌
$
—‌
$
—‌
$
58‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
58
INVESTMENT
COMPANIES
-
8.50%
Shares
Held
Value
(000's)
Money
Market
Funds
-
8.50%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
20,544,429‌
$
20,544‌
TOTAL
INVESTMENT
COMPANIES
$
20,544‌
BONDS
-
20.74%
Principal
Amount
(000's)
Value
(000's)
Commercial
Mortgage
Backed
Securities
-
4.87%
COMM
2014-CCRE19
Mortgage
Trust
4.89%,
08/10/2047
(d)
$
600‌
$
577‌
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.37%,
05/25/2022
1,100‌
1,132‌
3.30%,
04/25/2023
(d)
1,300‌
1,391‌
3.46%,
08/25/2023
(d)
1,200‌
1,297‌
3.53%,
10/25/2023
(d)
870‌
946‌
Ginnie
Mae
0.50%,
10/16/2054
(d),(e)
9,230‌
179‌
0.55%,
04/16/2047
(d),(e)
8,980‌
263‌
0.58%,
03/16/2060
(d),(e)
4,492‌
239‌
0.68%,
11/16/2052
(d),(e)
11,713‌
377‌
0.77%,
09/16/2053
(d),(e)
8,638‌
288‌
0.77%,
02/16/2055
(d),(e)
19,225‌
332‌
0.83%,
02/16/2053
(d),(e)
10,480‌
378‌
2.60%,
05/16/2059
628‌
659‌
2.60%,
03/16/2060
1,068‌
1,121‌
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.61%,
08/15/2046
(d),(f)
2,000‌
2,033‌
Wells
Fargo
Commercial
Mortgage
Trust
2014-LC16
4.46%,
08/15/2050
600‌
558‌
$
11,770‌
Credit
Card
Asset
Backed
Securities
-
2.51%
American
Express
Credit
Account
Master
Trust
0.42%,
04/15/2024
3,500‌
3,505‌
1.00
x
1
Month
USD
LIBOR
+
0.24%
Chase
Issuance
Trust
0.38%,
04/17/2023
2,558‌
2,560‌
1.00
x
1
Month
USD
LIBOR
+
0.20%
$
6,065‌
Mortgage
Backed
Securities
-
12.57%
EverBank
Mortgage
Loan
Trust
18-1
3.50%,
02/25/2048
(d),(f)
472‌
489‌
Fannie
Mae
Grantor
Trust
2005-T1
0.53%,
05/25/2035
185‌
185‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
Fannie
Mae
Interest
Strip
3.50%,
12/25/2043
(d),(e)
1,323‌
197‌
Fannie
Mae
REMICS
3.00%,
10/25/2040
(e)
4,102‌
202‌
3.00%,
04/25/2042
768‌
791‌
3.00%,
08/25/2042
255‌
260‌
3.00%,
02/25/2043
378‌
392‌
3.00%,
03/25/2046
583‌
606‌
3.00%,
05/25/2048
178‌
186‌
3.18%,
06/25/2045
(e)
3,185‌
176‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.00%
3.50%,
01/25/2040
(e)
1,768‌
80‌
3.50%,
11/25/2042
2,500‌
2,717‌
4.00%,
12/25/2039
(e)
835‌
35‌
4.50%,
04/25/2045
(e)
2,608‌
444‌
5.82%,
10/25/2046
(e)
651‌
153‌
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
7.00%,
04/25/2032
101‌
120‌
Freddie
Mac
REMICS
1.50%,
04/15/2028
769‌
780‌
2.50%,
11/15/2032
800‌
847‌
2.50%,
02/15/2043
798‌
841‌
3.00%,
11/15/2030
(e)
1,617‌
41‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Freddie
Mac
REMICS  
(continued)
3.00%,
11/15/2035
$
950‌
$
1,006‌
3.00%,
06/15/2040
357‌
368‌
3.00%,
10/15/2041
727‌
750‌
3.00%,
04/15/2046
241‌
260‌
3.15%,
05/15/2038
(e)
2,845‌
148‌
1.00
x
12
Month
Treasury
Average
Index
+
0.00%
3.50%,
03/15/2029
294‌
309‌
3.50%,
08/15/2040
(e)
1,971‌
112‌
3.50%,
05/15/2043
837‌
863‌
3.50%,
09/15/2043
1,200‌
1,237‌
4.00%,
05/15/2039
4,200‌
4,372‌
Ginnie
Mae
3.50%,
05/20/2039
50‌
51‌
3.50%,
10/20/2044
(e)
4,369‌
479‌
3.50%,
11/20/2045
930‌
985‌
4.00%,
02/20/2044
(e)
2,750‌
233‌
4.00%,
04/20/2044
(e)
1,411‌
125‌
4.00%,
01/20/2046
(e)
1,425‌
117‌
5.90%,
07/16/2043
(e)
3,144‌
636‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.91%,
06/20/2046
(e)
636‌
133‌
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
12/20/2043
(e)
1,407‌
352‌
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
6.01%,
08/20/2042
(e)
1,149‌
206‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.01%,
09/20/2047
(e)
723‌
136‌
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
08/16/2045
(e)
451‌
102‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.06%,
06/20/2044
(e)
1,769‌
239‌
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.56%,
11/20/2045
(e)
671‌
160‌
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
JP
Morgan
Mortgage
Trust
2016-4
3.50%,
10/25/2046
(d),(f)
575‌
588‌
JP
Morgan
Mortgage
Trust
2017-3
3.82%,
08/25/2047
(d),(f)
557‌
566‌
JP
Morgan
Mortgage
Trust
2018-8
4.00%,
01/25/2049
(d),(f)
501‌
513‌
JP
Morgan
Mortgage
Trust
2019-9
3.50%,
05/25/2050
(d),(f)
1,200‌
1,235‌
New
Residential
Mortgage
Loan
Trust
2014-1
5.00%,
01/25/2054
(d),(f)
1,398‌
1,508‌
New
Residential
Mortgage
Loan
Trust
2015-2
5.53%,
08/25/2055
(d),(f)
1,036‌
1,105‌
Sequoia
Mortgage
Trust
2013-2
3.64%,
02/25/2043
(d)
627‌
639‌
Sequoia
Mortgage
Trust
2017-2
3.63%,
02/25/2047
(d),(f)
459‌
454‌
Sequoia
Mortgage
Trust
2017-3
3.79%,
04/25/2047
(d),(f)
461‌
457‌
Sequoia
Mortgage
Trust
2018-5
3.50%,
05/25/2048
(d),(f)
382‌
395‌
$
30,381‌
Other
Asset
Backed
Securities
-
0.79%
Chase
Funding
Trust
Series
2004-1
0.64%,
12/25/2033
95‌
85‌
1.00
x
1
Month
USD
LIBOR
+
0.46%
CNH
Equipment
Trust
2016-C
1.76%,
09/15/2023
500‌
502‌
Towd
Point
Mortgage
Trust
4.25%,
10/25/2053
(d),(f)
550‌
579‌
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
59
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
$
722‌
$
738‌
$
1,904‌
TOTAL
BONDS
$
50,120‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
75.23%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
10.83%
2.00%,
10/01/2031
$
611‌
$
636‌
2.50%,
02/01/2028
534‌
568‌
3.00%,
02/01/2027
186‌
196‌
3.00%,
01/01/2031
469‌
502‌
3.00%,
01/01/2033
830‌
891‌
3.00%,
03/01/2037
353‌
373‌
3.00%,
08/01/2042
642‌
688‌
3.00%,
10/01/2042
465‌
498‌
3.00%,
10/01/2042
888‌
952‌
3.00%,
10/01/2042
992‌
1,082‌
3.00%,
05/01/2043
630‌
684‌
3.00%,
10/01/2046
694‌
757‌
3.00%,
01/01/2047
895‌
976‌
3.50%,
02/01/2032
926‌
991‌
3.50%,
04/01/2042
1,309‌
1,417‌
3.50%,
05/01/2042
506‌
554‌
3.50%,
07/01/2042
1,865‌
2,029‌
3.50%,
02/01/2044
730‌
789‌
3.50%,
07/01/2046
614‌
677‌
3.50%,
01/01/2048
908‌
1,001‌
3.50%,
04/01/2049
1,778‌
1,943‌
4.00%,
07/01/2042
678‌
767‌
4.00%,
01/01/2043
860‌
944‌
4.00%,
06/01/2043
1,006‌
1,113‌
4.00%,
10/01/2045
1,043‌
1,169‌
4.00%,
01/01/2048
1,088‌
1,230‌
4.23%,
09/01/2032
12‌
13‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.23%
4.50%,
11/01/2043
761‌
876‌
5.00%,
10/01/2025
84‌
92‌
5.00%,
02/01/2033
123‌
139‌
5.00%,
06/01/2033
145‌
160‌
5.00%,
01/01/2034
397‌
456‌
5.00%,
07/01/2035
80‌
92‌
5.00%,
07/01/2035
19‌
22‌
5.00%,
07/01/2035
9‌
10‌
5.00%,
10/01/2035
35‌
40‌
5.50%,
03/01/2033
88‌
100‌
5.50%,
04/01/2038
3‌
4‌
5.50%,
05/01/2038
25‌
29‌
6.00%,
12/01/2023
2‌
2‌
6.00%,
05/01/2031
10‌
12‌
6.00%,
12/01/2031
10‌
12‌
6.00%,
09/01/2032
6‌
7‌
6.00%,
11/01/2033
48‌
54‌
6.00%,
11/01/2033
12‌
13‌
6.00%,
09/01/2034
41‌
48‌
6.00%,
02/01/2035
37‌
43‌
6.00%,
10/01/2036
39‌
45‌
6.00%,
03/01/2037
38‌
43‌
6.00%,
01/01/2038
67‌
79‌
6.00%,
01/01/2038
7‌
8‌
6.00%,
04/01/2038
30‌
34‌
6.50%,
12/01/2021
3‌
3‌
6.50%,
04/01/2022
5‌
5‌
6.50%,
05/01/2022
4‌
4‌
6.50%,
05/01/2023
5‌
5‌
6.50%,
04/01/2024
1‌
2‌
6.50%,
04/01/2026
2‌
2‌
6.50%,
05/01/2026
1‌
1‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
6.50%,
05/01/2026
$
2‌
$
2‌
6.50%,
01/01/2028
3‌
3‌
6.50%,
03/01/2028
2‌
2‌
6.50%,
10/01/2028
12‌
14‌
6.50%,
11/01/2028
3‌
3‌
6.50%,
12/01/2028
6‌
7‌
6.50%,
03/01/2029
3‌
3‌
6.50%,
07/01/2031
18‌
20‌
6.50%,
08/01/2031
5‌
5‌
6.50%,
10/01/2031
7‌
8‌
6.50%,
10/01/2031
7‌
8‌
6.50%,
12/01/2031
11‌
12‌
6.50%,
02/01/2032
11‌
13‌
6.50%,
05/01/2032
28‌
31‌
6.50%,
04/01/2035
5‌
6‌
7.00%,
09/01/2023
3‌
3‌
7.00%,
12/01/2023
1‌
1‌
7.00%,
01/01/2024
1‌
2‌
7.00%,
09/01/2027
3‌
3‌
7.00%,
01/01/2028
21‌
23‌
7.00%,
04/01/2028
12‌
13‌
7.00%,
05/01/2028
2‌
2‌
7.00%,
10/01/2031
5‌
5‌
7.00%,
10/01/2031
11‌
12‌
7.00%,
04/01/2032
37‌
44‌
7.50%,
10/01/2030
6‌
7‌
7.50%,
02/01/2031
2‌
2‌
7.50%,
02/01/2031
7‌
9‌
8.00%,
10/01/2030
13‌
16‌
8.50%,
07/01/2029
15‌
16‌
$
26,177‌
Federal
National
Mortgage
Association
(FNMA)
-
0.51%
3.00%,
04/01/2043
824‌
872‌
3.64%,
12/01/2032
11‌
11‌
1.00
x
12
Month
USD
LIBOR
+
1.64%
3.65%,
12/01/2033
67‌
68‌
1.00
x
12
Month
USD
LIBOR
+
1.65%
5.50%,
05/01/2033
13‌
14‌
6.00%,
05/01/2037
159‌
180‌
6.50%,
08/01/2025
14‌
15‌
6.50%,
11/01/2032
13‌
15‌
7.00%,
08/01/2028
13‌
14‌
7.00%,
12/01/2028
10‌
11‌
8.00%,
05/01/2027
6‌
6‌
8.50%,
10/01/2027
23‌
23‌
$
1,229‌
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
38.72%
2.00%,
02/01/2032
372‌
386‌
2.00%,
07/01/2035
(g)
1,250‌
1,293‌
2.00%,
07/01/2050
(g)
1,225‌
1,254‌
2.50%,
06/01/2027
850‌
902‌
2.50%,
08/01/2028
602‌
641‌
2.50%,
12/01/2031
720‌
765‌
2.50%,
09/01/2032
495‌
528‌
2.50%,
04/01/2050
2,057‌
2,146‌
2.50%,
07/01/2050
(g)
2,400‌
2,502‌
3.00%,
05/01/2029
690‌
736‌
3.00%,
08/01/2031
1,298‌
1,395‌
3.00%,
12/01/2034
1,631‌
1,715‌
3.00%,
10/01/2036
545‌
584‌
3.00%,
10/01/2042
1,318‌
1,433‌
3.00%,
11/01/2042
1,429‌
1,554‌
3.00%,
12/01/2042
1,285‌
1,398‌
3.00%,
02/01/2043
941‌
1,027‌
3.00%,
06/01/2043
1,609‌
1,750‌
3.00%,
08/01/2043
1,111‌
1,208‌
3.00%,
09/01/2046
1,332‌
1,450‌
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
60
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
10/01/2046
$
915‌
$
989‌
3.00%,
11/01/2046
1,392‌
1,527‌
3.00%,
01/01/2047
874‌
953‌
3.00%,
01/01/2047
896‌
977‌
3.00%,
10/01/2049
1,859‌
1,959‌
3.00%,
12/01/2049
1,386‌
1,461‌
3.00%,
01/01/2050
2,149‌
2,265‌
3.00%,
02/01/2050
2,009‌
2,118‌
3.50%,
08/01/2031
654‌
706‌
3.50%,
02/01/2033
1,045‌
1,128‌
3.50%,
09/01/2033
1,435‌
1,549‌
3.50%,
06/01/2039
540‌
576‌
3.50%,
02/01/2042
1,001‌
1,112‌
3.50%,
09/01/2042
1,632‌
1,792‌
3.50%,
11/01/2042
1,090‌
1,197‌
3.50%,
12/01/2042
1,206‌
1,331‌
3.50%,
02/01/2043
425‌
472‌
3.50%,
09/01/2044
1,735‌
1,925‌
3.50%,
10/01/2044
522‌
579‌
3.50%,
11/01/2044
516‌
573‌
3.50%,
03/01/2045
1,209‌
1,322‌
3.50%,
03/01/2045
534‌
589‌
3.50%,
06/01/2045
863‌
958‌
3.50%,
09/01/2045
773‌
848‌
3.50%,
10/01/2045
600‌
666‌
3.50%,
11/01/2045
579‌
639‌
3.50%,
01/01/2046
603‌
669‌
3.50%,
03/01/2046
427‌
474‌
3.50%,
04/01/2046
918‌
1,019‌
3.50%,
03/01/2047
905‌
1,004‌
3.50%,
10/01/2047
659‌
731‌
3.50%,
11/01/2048
1,856‌
2,059‌
3.50%,
05/01/2049
857‌
945‌
4.00%,
01/01/2034
433‌
466‌
4.00%,
10/01/2037
763‌
821‌
4.00%,
02/01/2041
1,203‌
1,346‌
4.00%,
02/01/2042
714‌
800‌
4.00%,
08/01/2043
421‌
476‌
4.00%,
10/01/2043
318‌
349‌
4.00%,
08/01/2044
467‌
528‌
4.00%,
10/01/2044
1,336‌
1,491‌
4.00%,
11/01/2044
445‌
503‌
4.00%,
12/01/2044
763‌
863‌
4.00%,
02/01/2045
758‌
857‌
4.00%,
08/01/2045
712‌
805‌
4.00%,
07/01/2046
633‌
715‌
4.00%,
08/01/2046
1,380‌
1,526‌
4.00%,
07/01/2047
941‌
1,064‌
4.00%,
10/01/2047
830‌
929‌
4.00%,
12/01/2047
766‌
865‌
4.50%,
08/01/2039
1,396‌
1,581‌
4.50%,
03/01/2042
359‌
413‌
4.50%,
09/01/2043
1,479‌
1,701‌
4.50%,
10/01/2043
782‌
900‌
4.50%,
11/01/2043
867‌
997‌
4.50%,
09/01/2045
630‌
715‌
4.50%,
10/01/2045
831‌
955‌
4.50%,
11/01/2045
1,215‌
1,379‌
4.50%,
08/01/2048
853‌
967‌
4.50%,
09/01/2048
1,620‌
1,861‌
4.50%,
12/01/2048
1,134‌
1,275‌
5.00%,
05/01/2033
989‌
1,128‌
5.00%,
04/01/2035
93‌
107‌
5.00%,
04/01/2035
71‌
81‌
5.00%,
07/01/2035
4‌
5‌
5.00%,
02/01/2038
327‌
375‌
5.00%,
02/01/2040
1,091‌
1,257‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.00%,
07/01/2041
$
883‌
$
1,026‌
5.50%,
05/01/2024
4‌
5‌
5.50%,
06/01/2033
50‌
57‌
5.50%,
02/01/2037
3‌
4‌
5.50%,
03/01/2038
80‌
92‌
6.00%,
06/01/2022
6‌
6‌
6.00%,
11/01/2028
12‌
13‌
6.00%,
12/01/2031
5‌
6‌
6.00%,
01/01/2033
41‌
47‌
6.00%,
07/01/2037
104‌
121‌
6.00%,
11/01/2037
3‌
3‌
6.00%,
12/01/2037
7‌
8‌
6.00%,
03/01/2038
53‌
62‌
6.50%,
11/01/2023
13‌
15‌
6.50%,
05/01/2024
4‌
5‌
6.50%,
09/01/2024
6‌
6‌
6.50%,
07/01/2025
8‌
9‌
6.50%,
02/01/2026
2‌
3‌
6.50%,
03/01/2026
1‌
1‌
6.50%,
05/01/2026
2‌
2‌
6.50%,
06/01/2026
1‌
1‌
6.50%,
07/01/2028
8‌
9‌
6.50%,
09/01/2028
15‌
16‌
6.50%,
02/01/2029
1‌
1‌
6.50%,
03/01/2029
4‌
5‌
6.50%,
04/01/2029
4‌
4‌
6.50%,
06/01/2031
10‌
11‌
6.50%,
01/01/2032
3‌
4‌
6.50%,
04/01/2032
3‌
4‌
6.50%,
08/01/2032
8‌
9‌
6.50%,
02/01/2033
8‌
10‌
6.50%,
12/01/2036
32‌
38‌
6.50%,
07/01/2037
11‌
12‌
6.50%,
07/01/2037
22‌
27‌
6.50%,
02/01/2038
26‌
31‌
7.00%,
10/01/2029
12‌
13‌
7.00%,
05/01/2031
4‌
4‌
7.00%,
11/01/2031
18‌
20‌
8.00%,
06/01/2030
2‌
2‌
$
93,592‌
Government
National
Mortgage
Association
(GNMA)
-
15.04%
2.50%,
07/01/2050
4,500‌
4,737‌
3.00%,
11/15/2042
750‌
796‌
3.00%,
12/15/2042
1,405‌
1,492‌
3.00%,
02/15/2043
1,271‌
1,371‌
3.00%,
05/15/2043
1,712‌
1,839‌
3.00%,
07/20/2045
1,360‌
1,453‌
3.00%,
07/20/2046
780‌
830‌
3.00%,
08/20/2046
1,714‌
1,824‌
3.00%,
09/20/2046
2,066‌
2,196‌
3.00%,
12/20/2046
1,015‌
1,079‌
3.00%,
02/20/2047
1,215‌
1,291‌
3.00%,
08/20/2047
857‌
910‌
3.50%,
01/15/2043
1,049‌
1,133‌
3.50%,
05/15/2043
1,181‌
1,275‌
3.50%,
06/20/2043
689‌
749‌
3.50%,
04/20/2045
645‌
694‌
3.50%,
06/20/2046
95‌
102‌
3.50%,
02/20/2047
760‌
826‌
3.50%,
04/20/2047
1,530‌
1,633‌
3.50%,
05/20/2047
864‌
934‌
3.50%,
11/20/2047
651‌
697‌
3.50%,
02/20/2048
1,731‌
1,841‌
4.00%,
08/15/2041
853‌
948‌
4.00%,
07/20/2047
768‌
825‌
4.00%,
01/20/2048
3,197‌
3,508‌
4.50%,
07/15/2040
444‌
497‌
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
61
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
5.00%,
09/15/2033
$
4‌
$
5‌
5.00%,
02/15/2034
244‌
278‌
5.00%,
09/15/2039
32‌
36‌
5.50%,
11/15/2033
21‌
23‌
5.50%,
05/20/2035
105‌
121‌
6.00%,
04/20/2026
3‌
3‌
6.00%,
05/20/2026
2‌
2‌
6.00%,
03/20/2028
2‌
2‌
6.00%,
06/20/2028
11‌
13‌
6.00%,
07/20/2028
6‌
6‌
6.00%,
02/20/2029
6‌
6‌
6.00%,
03/20/2029
12‌
13‌
6.00%,
07/20/2029
12‌
13‌
6.00%,
07/20/2033
95‌
109‌
6.50%,
12/20/2025
6‌
7‌
6.50%,
02/20/2026
4‌
4‌
6.50%,
03/20/2031
8‌
10‌
6.50%,
04/20/2031
9‌
11‌
7.00%,
01/15/2028
1‌
1‌
7.00%,
01/15/2028
1‌
1‌
7.00%,
01/15/2028
4‌
4‌
7.00%,
01/15/2028
2‌
3‌
7.00%,
01/15/2028
1‌
1‌
7.00%,
03/15/2028
51‌
53‌
7.00%,
05/15/2028
5‌
5‌
7.00%,
01/15/2029
11‌
12‌
7.00%,
03/15/2029
4‌
3‌
7.00%,
05/15/2031
7‌
8‌
7.00%,
09/15/2031
24‌
28‌
7.00%,
06/15/2032
80‌
92‌
7.50%,
04/15/2023
4‌
4‌
7.50%,
09/15/2023
1‌
1‌
7.50%,
09/15/2023
1‌
1‌
7.50%,
10/15/2023
2‌
2‌
7.50%,
11/15/2023
2‌
2‌
8.00%,
07/15/2026
1‌
1‌
8.00%,
08/15/2026
2‌
2‌
8.00%,
01/15/2027
1‌
1‌
8.00%,
02/15/2027
1‌
1‌
$
36,368‌
U.S.
Treasury
-
3.31%
2.13%,
12/31/2022
2,400‌
2,517‌
3.13%,
05/15/2021
2,500‌
2,564‌
4.50%,
02/15/2036
1,000‌
1,531‌
5.25%,
11/15/2028
1,000‌
1,384‌
$
7,996‌
U.S.
Treasury
Bill
-
6.82%
0.08%,
07/02/2020
(h)
6,000‌
6,000‌
0.11%,
07/30/2020
(h)
10,500‌
10,499‌
$
16,499‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
181,861‌
Total
Investments
$
252,525‌
Other
Assets
and
Liabilities
-  (4.47)%
(10,797‌)
TOTAL
NET
ASSETS
-
100.00%
$
241,728‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
(d)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(e)
Security
is
an
Interest
Only
Strip.
(f)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$9,922
or
4.10%
of
net
assets.
(g)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.  See
Notes
to
Financial
Statements
for
additional
information.
(h)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary  (unaudited)
Sector
Percent
Mortgage
Securities
82.54‌%
Government
10.13‌%
Money
Market
Funds
8.50‌%
Asset
Backed
Securities
3.30‌%
Other
Assets
and
Liabilities
(4.47‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
62
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
6,646‌
$
84,646‌
$
70,748‌
$
20,544‌
$
6,646‌
$
84,646‌
$
70,748‌
$
20,544‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
29‌
$
—‌
$
—‌
$
—‌
$
29‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
September
2020
Short
64‌
$
8,907‌
$
(23‌)
US
Long
Bond;
September
2020
Short
20‌
3,571‌
(6‌)
Total
$
(29‌)
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
63
INVESTMENT
COMPANIES
-
3.24%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.82%
Technology
Select
Sector
SPDR
Fund
24,310‌
$
2,540‌
Vanguard
Mega
Cap
Growth
ETF
(a)
11,606‌
1,898‌
$
4,438‌
Money
Market
Funds
-
2.41%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(b),(c)
2,131,639‌
2,132‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(b),(d),(e)
10,969,117‌
10,969‌
$
13,101‌
Principal
Exchange-Traded
Funds
-
0.01%
Principal
Price
Setters
Index
ETF
(d)
1,616‌
63‌
TOTAL
INVESTMENT
COMPANIES
$
17,602‌
COMMON
STOCKS
-
96.94%
Shares
Held
Value
(000's)
Advertising
-
0.01%
Trade
Desk
Inc
/The
(e)
162‌
$
66‌
Aerospace
&
Defense
-
1.19%
HEICO
Corp
144‌
14‌
HEICO
Corp
-
Class
A
251‌
20‌
L3Harris
Technologies
Inc
34,382‌
5,834‌
Lockheed
Martin
Corp
1,032‌
377‌
Mercury
Systems
Inc
(e)
177‌
14‌
Northrop
Grumman
Corp
618‌
190‌
TransDigm
Group
Inc
47‌
21‌
$
6,470‌
Agriculture
-
0.03%
Altria
Group
Inc
3,497‌
137‌
Apparel
-
0.09%
NIKE
Inc
5,038‌
494‌
VF
Corp
76‌
5‌
$
499‌
Automobile
Manufacturers
-
0.12%
Tesla
Inc
(e)
615‌
664‌
Automobile
Parts
&
Equipment
-
0.45%
Allison
Transmission
Holdings
Inc
293‌
11‌
Aptiv
PLC
31,152‌
2,427‌
$
2,438‌
Banks
-
0.23%
Goldman
Sachs
Group
Inc
/The
6,200‌
1,225‌
Beverages
-
1.36%
Boston
Beer
Co
Inc
/The
(e)
34‌
18‌
Brown-Forman
Corp
-
A
Shares
154‌
9‌
Brown-Forman
Corp
-
B
Shares
98,278‌
6,256‌
Coca-Cola
Co/The
9,787‌
437‌
Monster
Beverage
Corp
(e)
1,479‌
103‌
PepsiCo
Inc
4,394‌
581‌
$
7,404‌
Biotechnology
-
2.63%
ACADIA
Pharmaceuticals
Inc
(e)
438‌
21‌
Acceleron
Pharma
Inc
(e)
172‌
16‌
Alexion
Pharmaceuticals
Inc
(e)
4,537‌
509‌
Alnylam
Pharmaceuticals
Inc
(e)
457‌
68‌
Amgen
Inc
2,538‌
599‌
Biogen
Inc
(e)
198‌
53‌
BioMarin
Pharmaceutical
Inc
(e)
656‌
81‌
Bluebird
Bio
Inc
(e)
115‌
7‌
Exact
Sciences
Corp
(e)
517‌
45‌
Exelixis
Inc
(e)
442‌
10‌
Guardant
Health
Inc
(e)
297‌
24‌
Illumina
Inc
(e)
18,524‌
6,860‌
Immunomedics
Inc
(e)
824‌
29‌
Incyte
Corp
(e)
14,963‌
1,556‌
Ionis
Pharmaceuticals
Inc
(e)
258‌
15‌
Iovance
Biotherapeutics
Inc
(e)
541‌
15‌
Livongo
Health
Inc
(a),(e)
215‌
16‌
Moderna
Inc
(e)
1,075‌
69‌
Regeneron
Pharmaceuticals
Inc
(e)
402‌
251‌
Sage
Therapeutics
Inc
(e)
15‌
1‌
Seattle
Genetics
Inc
(e)
486‌
83‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Biotechnology
(continued)
Vertex
Pharmaceuticals
Inc
(e)
13,583‌
$
3,943‌
$
14,271‌
Building
Materials
-
0.01%
Armstrong
World
Industries
Inc
71‌
5‌
Carrier
Global
Corp
1,248‌
28‌
Trex
Co
Inc
(e)
231‌
30‌
$
63‌
Chemicals
-
1.53%
Air
Products
and
Chemicals
Inc
113‌
27‌
Ecolab
Inc
200‌
40‌
FMC
Corp
102‌
10‌
NewMarket
Corp
23‌
9‌
RPM
International
Inc
427‌
32‌
Sherwin-Williams
Co/The
14,121‌
8,160‌
W
R
Grace
&
Co
81‌
4‌
$
8,282‌
Commercial
Services
-
6.54%
2U
Inc
(e)
79‌
3‌
Automatic
Data
Processing
Inc
1,381‌
206‌
Avalara
Inc
(e)
307‌
41‌
Booz
Allen
Hamilton
Holding
Corp
551‌
43‌
Bright
Horizons
Family
Solutions
Inc
(e)
161‌
19‌
Chegg
Inc
(e)
484‌
33‌
Cintas
Corp
27,014‌
7,195‌
CoreLogic
Inc
/United
States
17‌
1‌
CoStar
Group
Inc
(e)
2,673‌
1,899‌
Equifax
Inc
360‌
62‌
FleetCor
Technologies
Inc
(e)
331‌
83‌
Gartner
Inc
(e)
347‌
42‌
Global
Payments
Inc
39,662‌
6,728‌
H&R
Block
Inc
543‌
8‌
IHS
Markit
Ltd
867‌
65‌
MarketAxess
Holdings
Inc
147‌
74‌
Moody's
Corp
677‌
186‌
Morningstar
Inc
73‌
10‌
Paylocity
Holding
Corp
(e)
139‌
20‌
PayPal
Holdings
Inc
(e)
94,900‌
16,535‌
Quanta
Services
Inc
111‌
4‌
Rollins
Inc
518‌
22‌
S&P
Global
Inc
5,646‌
1,860‌
Square
Inc
(e)
1,531‌
161‌
StoneCo
Ltd
(e)
620‌
24‌
TransUnion
693‌
60‌
Verisk
Analytics
Inc
683‌
116‌
WEX
Inc
(e)
15‌
3‌
$
35,503‌
Computers
-
4.28%
Accenture
PLC
-
Class
A
2,427‌
521‌
Apple
Inc
39,843‌
14,535‌
CACI
International
Inc
(e)
15‌
3‌
Crowdstrike
Holdings
Inc
(e)
8,373‌
840‌
Dell
Technologies
Inc
(e)
37‌
2‌
EPAM
Systems
Inc
(e)
213‌
54‌
Fortinet
Inc
(e)
533‌
73‌
Genpact
Ltd
195,144‌
7,127‌
Globant
SA
(e)
144‌
21‌
Leidos
Holdings
Inc
52‌
5‌
Lumentum
Holdings
Inc
(e)
32‌
3‌
NetApp
Inc
480‌
21‌
Pure
Storage
Inc
(e)
553‌
10‌
Science
Applications
International
Corp
30‌
2‌
Zscaler
Inc
(e)
282‌
31‌
$
23,248‌
Consumer
Products
-
0.03%
Avery
Dennison
Corp
137‌
15‌
Church
&
Dwight
Co
Inc
984‌
76‌
Clorox
Co/The
359‌
79‌
Reynolds
Consumer
Products
Inc
54‌
2‌
$
172‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
64
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Cosmetics
&
Personal
Care
-
1.29%
Estee
Lauder
Cos
Inc
/The
34,232‌
$
6,459‌
Procter
&
Gamble
Co/The
4,697‌
562‌
$
7,021‌
Distribution
&
Wholesale
-
0.04%
Copart
Inc
(e)
814‌
68‌
Fastenal
Co
1,860‌
80‌
IAA
Inc
(e)
129‌
5‌
Pool
Corp
156‌
42‌
WW
Grainger
Inc
132‌
41‌
$
236‌
Diversified
Financial
Services
-
4.19%
Ares
Management
Corp
392‌
16‌
Cboe
Global
Markets
Inc
96‌
9‌
Charles
Schwab
Corp/The
24,131‌
814‌
Credit
Acceptance
Corp
(a),(e)
3‌
1‌
Intercontinental
Exchange
Inc
761‌
70‌
LendingTree
Inc
(e)
30‌
9‌
LPL
Financial
Holdings
Inc
26‌
2‌
Mastercard
Inc
35,146‌
10,393‌
SLM
Corp
344‌
2‌
T
Rowe
Price
Group
Inc
231‌
29‌
Tradeweb
Markets
Inc
278‌
16‌
Virtu
Financial
Inc
223‌
5‌
Visa
Inc
57,469‌
11,101‌
Western
Union
Co/The
319‌
7‌
XP
Inc
(e)
6,711‌
282‌
$
22,756‌
Electric
-
0.66%
NextEra
Energy
Inc
10,222‌
2,455‌
NRG
Energy
Inc
338‌
11‌
Sempra
Energy
9,320‌
1,093‌
$
3,559‌
Electrical
Components
&
Equipment
-
0.01%
Energizer
Holdings
Inc
197‌
9‌
Generac
Holdings
Inc
(e)
223‌
27‌
Universal
Display
Corp
172‌
26‌
$
62‌
Electronics
-
3.93%
Agilent
Technologies
Inc
107‌
9‌
Allegion
plc
240‌
25‌
Amphenol
Corp
60,379‌
5,785‌
Coherent
Inc
(e)
79‌
10‌
Fortive
Corp
103,797‌
7,023‌
Jabil
Inc
112‌
4‌
Keysight
Technologies
Inc
(e)
252‌
25‌
Mettler
-Toledo
International
Inc
(e)
89‌
72‌
PerkinElmer
Inc
87‌
9‌
Roper
Technologies
Inc
21,582‌
8,379‌
Waters
Corp
(e)
19‌
3‌
$
21,344‌
Energy
-
Alternate
Sources
-
0.01%
Enphase
Energy
Inc
(e)
422‌
20‌
SolarEdge
Technologies
Inc
(e)
195‌
27‌
$
47‌
Engineering
&
Construction
-
0.00%
frontdoor
Inc
(e)
57‌
3‌
Entertainment
-
0.19%
DraftKings
Inc
(a),(e)
29,531‌
982‌
Live
Nation
Entertainment
Inc
(e)
567‌
25‌
Vail
Resorts
Inc
13‌
3‌
$
1,010‌
Environmental
Control
-
0.00%
Waste
Management
Inc
219‌
23‌
Food
-
0.05%
Beyond
Meat
Inc
(e)
164‌
22‌
Campbell
Soup
Co
350‌
17‌
Grocery
Outlet
Holding
Corp
(e)
148‌
6‌
Hershey
Co/The
456‌
59‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Food
(continued)
Kellogg
Co
342‌
$
23‌
Lamb
Weston
Holdings
Inc
135‌
9‌
McCormick
&
Co
Inc
/MD
278‌
50‌
Pilgrim's
Pride
Corp
(e)
67‌
1‌
Sprouts
Farmers
Market
Inc
(e)
397‌
10‌
Sysco
Corp
1,383‌
76‌
$
273‌
Hand
&
Machine
Tools
-
0.00%
Lincoln
Electric
Holdings
Inc
98‌
8‌
MSA
Safety
Inc
32‌
4‌
$
12‌
Healthcare
-
Products
-
8.03%
10X
Genomics
Inc
(e)
217‌
19‌
Abbott
Laboratories
2,862‌
262‌
ABIOMED
Inc
(e)
177‌
43‌
Adaptive
Biotechnologies
Corp
(e)
284‌
14‌
Align
Technology
Inc
(e)
313‌
86‌
Avantor
Inc
(e)
69,935‌
1,189‌
Baxter
International
Inc
854‌
73‌
Bio-
Techne
Corp
143‌
38‌
Bruker
Corp
176‌
7‌
Cooper
Cos
Inc
/The
24‌
7‌
Danaher
Corp
47,673‌
8,430‌
Edwards
Lifesciences
Corp
(e)
87,500‌
6,047‌
Haemonetics
Corp
(e)
185‌
17‌
Hill-Rom
Holdings
Inc
32‌
3‌
Hologic
Inc
(e)
718‌
41‌
ICU
Medical
Inc
(e)
22‌
4‌
IDEXX
Laboratories
Inc
(e)
362‌
119‌
Insulet
Corp
(e)
252‌
49‌
Intuitive
Surgical
Inc
(e)
22,002‌
12,537‌
Masimo
Corp
(e)
193‌
44‌
Novocure
Ltd
(e)
397‌
23‌
Penumbra
Inc
(e)
128‌
23‌
Quidel
Corp
(e)
148‌
33‌
Repligen
Corp
(e)
208‌
26‌
ResMed
Inc
616‌
118‌
STERIS
PLC
18‌
3‌
Stryker
Corp
23,270‌
4,193‌
Tandem
Diabetes
Care
Inc
(e)
208‌
21‌
Teleflex
Inc
117‌
43‌
Thermo
Fisher
Scientific
Inc
27,659‌
10,022‌
Varian
Medical
Systems
Inc
(e)
46‌
6‌
West
Pharmaceutical
Services
Inc
293‌
66‌
$
43,606‌
Healthcare
-
Services
-
2.35%
Amedisys
Inc
(e)
126‌
25‌
Anthem
Inc
5,190‌
1,365‌
Centene
Corp
(e)
23,953‌
1,522‌
Charles
River
Laboratories
International
Inc
(e)
173‌
30‌
Chemed
Corp
63‌
28‌
DaVita
Inc
(e)
55‌
4‌
Encompass
Health
Corp
176‌
11‌
HCA
Healthcare
Inc
22,000‌
2,135‌
Humana
Inc
5,419‌
2,102‌
IQVIA
Holdings
Inc
(e)
289‌
41‌
Laboratory
Corp
of
America
Holdings
(e)
22‌
4‌
Molina
Healthcare
Inc
(e)
159‌
28‌
PPD
Inc
(e)
210‌
6‌
Syneos
Health
Inc
(e)
27‌
2‌
Teladoc
Health
Inc
(e)
267‌
51‌
UnitedHealth
Group
Inc
18,424‌
5,434‌
$
12,788‌
Home
Builders
-
0.00%
NVR
Inc
(e)
1‌
3‌
Home
Furnishings
-
0.00%
Dolby
Laboratories
Inc
31‌
2‌
Tempur
Sealy
International
Inc
(e)
140‌
10‌
$
12‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
65
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Housewares
-
0.01%
Scotts
Miracle-
Gro
Co/The
151‌
$
20‌
Toro
Co/The
386‌
26‌
$
46‌
Insurance
-
0.08%
Alleghany
Corp
5‌
3‌
Aon
PLC
919‌
177‌
Axis
Capital
Holdings
Ltd
29‌
1‌
Brown
&
Brown
Inc
50‌
2‌
Erie
Indemnity
Co
58‌
11‌
Lincoln
National
Corp
95‌
4‌
Marsh
&
McLennan
Cos
Inc
1,576‌
169‌
Primerica
Inc
100‌
12‌
Progressive
Corp/The
676‌
54‌
RenaissanceRe
Holdings
Ltd
66‌
11‌
$
444‌
Internet
-
21.70%
Alibaba
Group
Holding
Ltd
ADR
(e)
40,139‌
8,658‌
Alphabet
Inc
-
A
Shares
(e)
9,868‌
13,993‌
Alphabet
Inc
-
C
Shares
(e)
11,321‌
16,004‌
Amazon.com
Inc
(e)
14,406‌
39,744‌
Anaplan
Inc
(e)
521‌
24‌
Booking
Holdings
Inc
(e)
1,494‌
2,379‌
CDW
Corp/DE
569‌
66‌
eBay
Inc
2,630‌
138‌
Etsy
Inc
(e)
472‌
50‌
Expedia
Group
Inc
61‌
5‌
Facebook
Inc
(e)
66,414‌
15,081‌
FireEye
Inc
(e)
199‌
2‌
GoDaddy
Inc
(e)
663‌
49‌
Grubhub
Inc
(e)
34‌
2‌
Match
Group
Inc
(e)
8,410‌
2,720‌
Match
Group
Inc
(a),(e)
222‌
24‌
Netflix
Inc
(e)
13,016‌
5,923‌
NortonLifeLock
Inc
2,232‌
44‌
Okta
Inc
(e)
495‌
99‌
Palo
Alto
Networks
Inc
(e)
391‌
90‌
Pinterest
Inc
(e)
1,334‌
30‌
Proofpoint
Inc
(e)
227‌
25‌
Roku
Inc
(e)
407‌
47‌
Snap
Inc
Class
A
(e)
114,491‌
2,689‌
Spotify
Technology
SA
(e)
17,048‌
4,401‌
Tencent
Holdings
Ltd
ADR
74,961‌
4,798‌
Uber
Technologies
Inc
(e)
4,204‌
131‌
VeriSign
Inc
(e)
243‌
50‌
Wayfair
Inc
(e)
239‌
47‌
Wix.com
Ltd
(e)
2,054‌
526‌
Zendesk
Inc
(e)
452‌
40‌
Zillow
Group
Inc
-
A
Shares
(e)
25‌
2‌
Zillow
Group
Inc
-
C
Shares
(e)
59‌
3‌
$
117,884‌
Leisure
Products
&
Services
-
0.00%
Peloton
Interactive
Inc
(e)
95‌
6‌
Planet
Fitness
Inc
(e)
182‌
11‌
Polaris
Inc
25‌
2‌
Virgin
Galactic
Holdings
Inc
(a),(e)
206‌
3‌
$
22‌
Lodging
-
0.27%
Hilton
Worldwide
Holdings
Inc
15,739‌
1,156‌
Las
Vegas
Sands
Corp
568‌
26‌
Wynn
Resorts
Ltd
3,738‌
278‌
$
1,460‌
Machinery
-
Construction
&
Mining
-
0.01%
BWX
Technologies
Inc
244‌
14‌
Vertiv
Holdings
Co
(e)
797‌
11‌
$
25‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Machinery
-
Diversified
-
0.28%
Cognex
Corp
659‌
$
39‌
Graco
Inc
331‌
16‌
Ingersoll
Rand
Inc
(e)
48,511‌
1,364‌
Nordson
Corp
188‌
36‌
Rockwell
Automation
Inc
226‌
48‌
$
1,503‌
Media
-
0.08%
Altice
USA
Inc
(e)
1,295‌
29‌
Cable
One
Inc
20‌
35‌
Charter
Communications
Inc
(e)
559‌
285‌
FactSet
Research
Systems
Inc
148‌
49‌
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(e)
38‌
1‌
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(e)
80‌
3‌
Nexstar
Media
Group
Inc
117‌
10‌
Sirius
XM
Holdings
Inc
2,840‌
17‌
World
Wrestling
Entertainment
Inc
184‌
8‌
$
437‌
Mining
-
0.00%
Royal
Gold
Inc
187‌
23‌
Miscellaneous
Manufacturers
-
0.07%
3M
Co
1,600‌
250‌
Axon
Enterprise
Inc
(e)
247‌
24‌
Donaldson
Co
Inc
53‌
2‌
Illinois
Tool
Works
Inc
559‌
98‌
$
374‌
Office
&
Business
Equipment
-
0.01%
Zebra
Technologies
Corp
(e)
193‌
49‌
Oil
&
Gas
-
0.13%
Concho
Resources
Inc
13,230‌
681‌
Packaging
&
Containers
-
0.02%
Amcor
PLC
963‌
10‌
Ball
Corp
1,196‌
83‌
Berry
Global
Group
Inc
(e)
181‌
8‌
Crown
Holdings
Inc
(e)
54‌
4‌
Graphic
Packaging
Holding
Co
242‌
3‌
$
108‌
Pharmaceuticals
-
5.22%
AbbVie
Inc
7,141‌
701‌
Agios
Pharmaceuticals
Inc
(e)
23‌
1‌
AmerisourceBergen
Corp
280‌
28‌
Becton
Dickinson
and
Co
8,278‌
1,981‌
Bristol-Myers
Squibb
Co
3,297‌
194‌
Cardinal
Health
Inc
1,170‌
61‌
Cigna
Corp
26,983‌
5,064‌
DexCom
Inc
(e)
21,687‌
8,792‌
Eli
Lilly
and
Co
3,632‌
596‌
Global
Blood
Therapeutics
Inc
(e)
234‌
15‌
Herbalife
Nutrition
Ltd
(e)
55‌
2‌
Horizon
Therapeutics
Plc
(e)
681‌
38‌
Johnson
&
Johnson
1,524‌
214‌
McKesson
Corp
481‌
74‌
Merck
&
Co
Inc
9,523‌
736‌
Neurocrine
Biosciences
Inc
(e)
368‌
45‌
PRA
Health
Sciences
Inc
(e)
215‌
21‌
Reata
Pharmaceuticals
Inc
(e)
84‌
13‌
Sarepta
Therapeutics
Inc
(e)
298‌
48‌
Zoetis
Inc
71,003‌
9,730‌
$
28,354‌
Pipelines
-
0.01%
Cheniere
Energy
Inc
(e)
925‌
45‌
Equitrans
Midstream
Corp
(a)
150‌
1‌
$
46‌
Private
Equity
-
0.00%
Apollo
Global
Management
Inc
339‌
17‌
Carlyle
Group
Inc
/The
(a)
43‌
1‌
$
18‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
66
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
-
1.99%
American
Tower
Corp
1,837‌
$
475‌
Americold
Realty
Trust
80‌
3‌
Brookfield
Property
REIT
Inc
206‌
2‌
CoreSite
Realty
Corp
108‌
13‌
Crown
Castle
International
Corp
1,609‌
269‌
Equinix
Inc
367‌
258‌
Equity
LifeStyle
Properties
Inc
286‌
18‌
Extra
Space
Storage
Inc
356‌
33‌
Iron
Mountain
Inc
670‌
17‌
Public
Storage
395‌
76‌
SBA
Communications
Corp
32,229‌
9,601‌
Simon
Property
Group
Inc
959‌
66‌
$
10,831‌
Retail
-
5.35%
AutoZone
Inc
(e)
56‌
63‌
Best
Buy
Co
Inc
166‌
15‌
Burlington
Stores
Inc
(e)
233‌
46‌
CarMax
Inc
(e)
11,159‌
999‌
Carvana
Co
(a),(e)
25,716‌
3,091‌
Chipotle
Mexican
Grill
Inc
(e)
1,321‌
1,390‌
Costco
Wholesale
Corp
20,534‌
6,226‌
Dollar
General
Corp
19,595‌
3,733‌
Dollar
Tree
Inc
(e)
449‌
42‌
Domino's
Pizza
Inc
157‌
58‌
Dunkin'
Brands
Group
Inc
280‌
18‌
Five
Below
Inc
(e)
218‌
23‌
Floor
&
Decor
Holdings
Inc
(e)
325‌
19‌
Home
Depot
Inc
/The
2,153‌
539‌
Lowe's
Cos
Inc
3,144‌
425‌
Lululemon
Athletica
Inc
(e)
27,858‌
8,692‌
McDonald's
Corp
347‌
64‌
Ollie's
Bargain
Outlet
Holdings
Inc
(e)
188‌
18‌
O'Reilly
Automotive
Inc
(e)
294‌
124‌
Ross
Stores
Inc
34,536‌
2,944‌
Starbucks
Corp
2,705‌
199‌
TJX
Cos
Inc
/The
3,892‌
197‌
Tractor
Supply
Co
463‌
61‌
Ulta
Beauty
Inc
(e)
201‌
41‌
Wendy's
Co/The
718‌
16‌
Williams-Sonoma
Inc
51‌
4‌
Yum
China
Holdings
Inc
101‌
5‌
Yum!
Brands
Inc
91‌
8‌
$
29,060‌
Semiconductors
-
2.55%
Advanced
Micro
Devices
Inc
(e)
28,837‌
1,518‌
Analog
Devices
Inc
5‌
1‌
Applied
Materials
Inc
3,484‌
211‌
ASML
Holding
NV
-
NY
Reg
Shares
8,621‌
3,173‌
Broadcom
Inc
1,398‌
441‌
Entegris
Inc
502‌
30‌
Inphi
Corp
(e)
191‌
22‌
IPG
Photonics
Corp
(e)
9‌
1‌
KLA
Corp
622‌
121‌
Lam
Research
Corp
551‌
178‌
Marvell
Technology
Group
Ltd
36,004‌
1,262‌
Maxim
Integrated
Products
Inc
353‌
21‌
Microchip
Technology
Inc
705‌
74‌
MKS
Instruments
Inc
164‌
19‌
Monolithic
Power
Systems
Inc
173‌
41‌
NVIDIA
Corp
2,240‌
851‌
NXP
Semiconductors
NV
45,216‌
5,156‌
QUALCOMM
Inc
4,514‌
412‌
Teradyne
Inc
663‌
56‌
Texas
Instruments
Inc
1,499‌
190‌
Xilinx
Inc
979‌
96‌
$
13,874‌
Shipbuilding
-
0.00%
Huntington
Ingalls
Industries
Inc
15‌
3‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
-
19.52%
Activision
Blizzard
Inc
1,209‌
$
92‌
Adobe
Inc
(e)
15,051‌
6,552‌
Akamai
Technologies
Inc
(e)
528‌
57‌
Alteryx
Inc
(e)
210‌
34‌
ANSYS
Inc
(e)
343‌
100‌
Aspen
Technology
Inc
(e)
253‌
26‌
Atlassian
Corp
PLC
(e)
501‌
90‌
Autodesk
Inc
(e)
38,722‌
9,262‌
Bill.com
Holdings
Inc
(e)
64‌
6‌
Black
Knight
Inc
(e)
579‌
42‌
Broadridge
Financial
Solutions
Inc
459‌
58‌
Cadence
Design
Systems
Inc
(e)
1,104‌
106‌
CDK
Global
Inc
63‌
3‌
Ceridian
HCM
Holding
Inc
(e)
299‌
24‌
Cerner
Corp
1,219‌
84‌
Change
Healthcare
Inc
(e)
714‌
8‌
Citrix
Systems
Inc
135‌
20‌
Cloudflare
Inc
(e)
436‌
16‌
Coupa
Software
Inc
(e)
267‌
74‌
Datadog
Inc
(e)
610‌
53‌
DocuSign
Inc
(e)
758‌
131‌
Dropbox
Inc
-
A
Shares
(e)
983‌
21‌
Dynatrace
Inc
(e)
608‌
25‌
Elastic
NV
(e)
218‌
20‌
Electronic
Arts
Inc
(e)
76,274‌
10,072‌
Everbridge
Inc
(e)
136‌
19‌
Fair
Isaac
Corp
(e)
112‌
47‌
Fastly
Inc
(e)
291‌
25‌
Fidelity
National
Information
Services
Inc
16,859‌
2,261‌
Fiserv
Inc
(e)
420‌
41‌
Five9
Inc
(e)
246‌
27‌
Guidewire
Software
Inc
(e)
63‌
7‌
HubSpot
Inc
(e)
166‌
37‌
Intuit
Inc
47,796‌
14,156‌
Jack
Henry
&
Associates
Inc
240‌
44‌
Manhattan
Associates
Inc
(e)
226‌
21‌
Medallia
Inc
(e)
328‌
8‌
Microsoft
Corp
188,305‌
38,322‌
MongoDB
Inc
(e)
3,727‌
844‌
MSCI
Inc
356‌
119‌
New
Relic
Inc
(e)
201‌
14‌
Nutanix
Inc
(e)
713‌
17‌
Oracle
Corp
6,718‌
371‌
Paychex
Inc
1,016‌
77‌
Paycom
Software
Inc
(e)
198‌
61‌
Pegasystems
Inc
142‌
14‌
Pluralsight
Inc
(e)
375‌
7‌
PTC
Inc
(e)
418‌
32‌
RealPage
Inc
(e)
308‌
20‌
RingCentral
Inc
(e)
307‌
87‌
salesforce.com
Inc
(e)
63,393‌
11,876‌
ServiceNow
Inc
(e)
7,626‌
3,089‌
Slack
Technologies
Inc
(e)
27,480‌
855‌
Smartsheet
Inc
(e)
442‌
22‌
Snowflake
Inc
-
Class
B
(e),(f),(g)
522‌
20‌
Splunk
Inc
(e)
17,710‌
3,519‌
SS&C
Technologies
Holdings
Inc
188‌
11‌
Stripe
Inc
-
Class
B
(e),(f),(g),(h)
5,754‌
90‌
Synopsys
Inc
(e)
8,246‌
1,608‌
Take-Two
Interactive
Software
Inc
(e)
416‌
58‌
Teradata
Corp
(e)
338‌
7‌
Twilio
Inc
(e)
460‌
101‌
Tyler
Technologies
Inc
(e)
157‌
54‌
Veeva
Systems
Inc
(e)
575‌
135‌
VMware
Inc
(a),(e)
317‌
49‌
Workday
Inc
(e)
3,588‌
672‌
Zoom
Video
Communications
Inc
(a),(e)
719‌
182‌
Zynga
Inc
(e)
2,922‌
28‌
$
106,030‌
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
67
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Telecommunications
-
0.01%
Arista
Networks
Inc
(e)
194‌
$
41‌
CommScope
Holding
Co
Inc
(e)
47‌
1‌
LogMeIn
Inc
16‌
1‌
Motorola
Solutions
Inc
14‌
2‌
PagerDuty
Inc
(e)
273‌
8‌
Switch
Inc
354‌
6‌
T-Mobile
US
Inc
-
Rights
(e)
652‌
—‌
Ubiquiti
Inc
29‌
5‌
$
64‌
Toys,
Games
&
Hobbies
-
0.00%
Mattel
Inc
(e)
818‌
8‌
Transportation
-
0.38%
CH
Robinson
Worldwide
Inc
84‌
7‌
Expeditors
International
of
Washington
Inc
408‌
31‌
JB
Hunt
Transport
Services
Inc
4,749‌
571‌
Landstar
System
Inc
125‌
14‌
Norfolk
Southern
Corp
5,313‌
933‌
Old
Dominion
Freight
Line
Inc
337‌
57‌
Union
Pacific
Corp
1,389‌
235‌
United
Parcel
Service
Inc
1,867‌
208‌
XPO
Logistics
Inc
(e)
19‌
1‌
$
2,057‌
TOTAL
COMMON
STOCKS
$
526,598‌
CONVERTIBLE
PREFERRED
STOCKS
-
0.10%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.04%
Waymo
LLC
Series
A-2
0.00%
(e),(f),(g)
2,489‌
$
214‌
Internet
-
0.06%
Airbnb
Inc
-
Series
D
0.00%
(e),(f),(g),(h)
3,936‌
257‌
Airbnb
Inc
-
Series
E
0.00%
(e),(f),(g),(h)
1,119‌
73‌
$
330‌
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
544‌
PREFERRED
STOCKS
-
0.20%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.12%
Rivian
Automotive
Series
D
0.00%
(e),(f),(g),(h)
61,168‌
657‌
Internet
-
0.02%
Doordash
0.00%
(e),(f),(g)
377‌
$
87‌
Software
-
0.04%
Magic
Leap
Inc
-
Series
C
0.00%
(e),(f),(g),(h)
5,653‌
26‌
Magic
Leap
Inc
-
Series
D
0.00%
(e),(f),(g),(h)
1,903‌
11‌
UIPATH
Inc
Series
D-1
0.00%
(e),(f),(g),(h)
4,548‌
179‌
UIPATH
Inc
Series
D-2
0.00%
(e),(f),(g),(h)
764‌
30‌
$
246‌
Telecommunications
-
0.02%
Aurora
Innovation
0.00%
(e),(f),(g),(h)
12,920‌
119‌
TOTAL
PREFERRED
STOCKS
$
1,109‌
Total
Investments
$
545,853‌
Other
Assets
and
Liabilities
-  (0.48)%
(2,600‌)
TOTAL
NET
ASSETS
-
100.00%
$
543,253‌
(a)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,132
or
0.39%
of
net
assets.
(d)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(e)
Non-income
producing
security
(f)
Restricted
Security.
Please
see
Restricted
Security
sub-schedule
for
additional
information.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$1,763
or
0.32%
of
net
assets.
(h)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
Portfolio
Summary  (unaudited)
Sector
Percent
Consumer,
Non-cyclical
27.53‌%
Technology
26.40‌%
Communications
21.90‌%
Consumer,
Cyclical
6.68‌%
Financial
6.49‌%
Industrial
5.90‌%
Money
Market
Funds
2.41‌%
Basic
Materials
1.53‌%
Utilities
0.66‌%
Investment
Companies
0.47‌%
Domestic
Equity
Funds
0.36‌%
Energy
0.15‌%
Other
Assets
and
Liabilities
(0.48‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
Growth
Account
I
June
30,
2020
(unaudited)
See
accompanying
notes.
68
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
5,083‌
$
84,037‌
$
78,151‌
$
10,969‌
Principal
Millennials
Index
ETF
199‌
—‌
199‌
—‌
Principal
Price
Setters
Index
ETF
66‌
—‌
—‌
63‌
Principal
Sustainable
Momentum
Index
ETF
21‌
—‌
20‌
—‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
166‌
—‌
156‌
—‌
$
5,535‌
$
84,037‌
$
78,52
6‌
$
11,032‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
27‌
$
—‌
$
—‌
$
—‌
Principal
Millennials
Index
ETF
—‌
37‌
—‌
(3
7‌
)
Principal
Price
Setters
Index
ETF
—‌
—‌
—‌
(3‌)
Principal
Sustainable
Momentum
Index
ETF
—‌
1‌
—‌
(2‌)
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
1‌
12‌
—‌
(22‌)
$
28‌
$
50‌
$
—‌
$
(6
4‌
)
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Airbnb
Inc
-
Series
D  
0.00%
04/16/2014
$
160‌
$
257‌
0.05%
Airbnb
Inc
-
Series
E  
0.00%
07/14/2015
104‌
73‌
0.01%
Aurora
Innovation  
0.00%
03/01/2019
119‌
119‌
0.02%
Doordash
0.00%
06/17/2020
87‌
87‌
0.02%
Magic
Leap
Inc
-
Series
C  
0.00%
01/20/2016
130‌
26‌
0.00%
Magic
Leap
Inc
-
Series
D  
0.00%
10/12/2017
5
1‌
11‌
0.00%
Rivian
Automotive
Series
D  
0.00%
12/23/2019
657‌
657‌
0.12%
Snowflake
Inc
-
Class
B
03/17/2020
20‌
20‌
0.00%
Stripe
Inc
-
Class
B
12/17/2019
90‌
90‌
0.02%
UIPATH
Inc
Series
D-1  
0.00%
04/26/2019
179‌
179‌
0.03%
UIPATH
Inc
Series
D-2  
0.00%
04/26/2019
30‌
30‌
0.01%
Waymo
LLC
Series
A-2  
0.00%
05/08/2020
214‌
214‌
0.04%
Total
$
1,763‌
0.32%
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
September
2020
Long
21‌
$
3,245‌
$
33‌
Total
$
33‌
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
MidCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
69
INVESTMENT
COMPANIES
-
0.21%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.21%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
197,078‌
$
197‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
922,788‌
923‌
$
1,120‌
TOTAL
INVESTMENT
COMPANIES
$
1,120‌
COMMON
STOCKS
-
100.11%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
5.22%
HEICO
Corp
-
Class
A
66,970‌
$
5,440‌
TransDigm
Group
Inc
51,584‌
22,803‌
$
28,243‌
Banks
-
1.26%
First
Republic
Bank/CA
48,990‌
5,193‌
M&T
Bank
Corp
15,642‌
1,626‌
$
6,819‌
Beverages
-
0.54%
Brown-Forman
Corp
-
B
Shares
46,029‌
2,930‌
Building
Materials
-
3.72%
Martin
Marietta
Materials
Inc
28,940‌
5,978‌
Summit
Materials
Inc
(d)
131,622‌
2,117‌
Vulcan
Materials
Co
103,602‌
12,002‌
$
20,097‌
Chemicals
-
0.68%
Air
Products
and
Chemicals
Inc
15,185‌
3,666‌
Commercial
Services
-
10.45%
CoStar
Group
Inc
(d)
15,585‌
11,076‌
Everarc
Holdings
Ltd
(d)
92,882‌
1,205‌
Everarc
Holdings
Ltd
-
Warrants
(d)
97,671‌
25‌
Gartner
Inc
(d)
76,548‌
9,287‌
IHS
Markit
Ltd
102,174‌
7,714‌
Moody's
Corp
21,716‌
5,966‌
S&P
Global
Inc
7,522‌
2,478‌
Square
Inc
(d)
20,881‌
2,191‌
TransUnion
100,087‌
8,712‌
Verisk
Analytics
Inc
45,980‌
7,826‌
$
56,480‌
Distribution
&
Wholesale
-
3.98%
Copart
Inc
(d)
167,752‌
13,968‌
Fastenal
Co
175,718‌
7,528‌
$
21,496‌
Diversified
Financial
Services
-
1.93%
Credit
Acceptance
Corp
(d)
24,946‌
10,453‌
Electric
-
2.22%
Brookfield
Infrastructure
Partners
LP
220,654‌
9,071‌
Brookfield
Renewable
Partners
LP
60,794‌
2,912‌
$
11,983‌
Electronics
-
3.35%
Mettler
-Toledo
International
Inc
(d)
9,108‌
7,337‌
Roper
Technologies
Inc
27,735‌
10,768‌
$
18,105‌
Entertainment
-
2.83%
Liberty
Media
Corp-Liberty
Braves
-
A
Shares
(d)
5,176‌
104‌
Liberty
Media
Corp-Liberty
Braves
-
C
Shares
(d)
18,935‌
374‌
Live
Nation
Entertainment
Inc
(d)
167,625‌
7,431‌
Vail
Resorts
Inc
40,698‌
7,413‌
$
15,322‌
Hand
&
Machine
Tools
-
0.66%
Colfax
Corp
(d)
127,081‌
3,545‌
Healthcare
-
Products
-
1.28%
IDEXX
Laboratories
Inc
(d)
20,901‌
6,901‌
Home
Builders
-
2.16%
Lennar
Corp
-
A
Shares
86,908‌
5,355‌
Lennar
Corp
-
B
Shares
1,475‌
68‌
NVR
Inc
(d)
1,915‌
6,241‌
$
11,664‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
8.00%
Aon
PLC
21,695‌
$
4,178‌
Arch
Capital
Group
Ltd
(d)
263,544‌
7,551‌
Brown
&
Brown
Inc
185,125‌
7,546‌
Fidelity
National
Financial
Inc
212,087‌
6,503‌
Markel
Corp
(d)
14,313‌
13,213‌
Progressive
Corp/The
52,893‌
4,237‌
$
43,228‌
Internet
-
4.94%
VeriSign
Inc
(d)
53,963‌
11,161‌
Wix.com
Ltd
(d)
60,608‌
15,529‌
$
26,690‌
Investment
Companies
-
0.23%
Brookfield
Business
Partners
LP
12,809‌
395‌
Brookfield
Infrastructure
Corp
(e)
19,143‌
872‌
$
1,267‌
Lodging
-
2.67%
Hilton
Worldwide
Holdings
Inc
154,678‌
11,361‌
Hyatt
Hotels
Corp
61,300‌
3,083‌
$
14,444‌
Machinery
-
Diversified
-
0.13%
Cognex
Corp
11,856‌
708‌
Media
-
3.77%
Liberty
Broadband
Corp
-
A
Shares
(d)
23,522‌
2,874‌
Liberty
Broadband
Corp
-
C
Shares
(d)
63,346‌
7,853‌
Liberty
Media
Corp-Liberty
Formula
One
-
A
Shares
(d)
18,376‌
536‌
Liberty
Media
Corp-Liberty
Formula
One
-
C
Shares
(d)
129,880‌
4,119‌
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(d)
30,630‌
1,057‌
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(d)
114,199‌
3,934‌
$
20,373‌
Private
Equity
-
7.20%
Brookfield
Asset
Management
Inc
665,340‌
21,890‌
Kennedy-Wilson
Holdings
Inc
158,273‌
2,409‌
KKR
&
Co
Inc
347,588‌
10,733‌
Onex
Corp
87,192‌
3,872‌
$
38,904‌
Real
Estate
-
2.62%
Brookfield
Property
Partners
LP
77,618‌
768‌
CBRE
Group
Inc
(d)
219,778‌
9,938‌
Howard
Hughes
Corp/The
(d)
66,228‌
3,440‌
$
14,146‌
REITs
-
3.84%
Equinix
Inc
4,881‌
3,428‌
SBA
Communications
Corp
54,000‌
16,088‌
Vornado
Realty
Trust
32,458‌
1,240‌
$
20,756‌
Retail
-
10.59%
CarMax
Inc
(d)
204,296‌
18,295‌
Dollar
General
Corp
15,510‌
2,955‌
Domino's
Pizza
Inc
21,968‌
8,116‌
O'Reilly
Automotive
Inc
(d)
35,624‌
15,021‌
Restaurant
Brands
International
Inc
187,359‌
10,235‌
Ross
Stores
Inc
30,783‌
2,624‌
$
57,246‌
Semiconductors
-
1.64%
Microchip
Technology
Inc
84,081‌
8,85
6‌
Software
-
12.28%
ANSYS
Inc
(d)
36,821‌
10,742‌
Autodesk
Inc
(d)
66,955‌
16,015‌
Black
Knight
Inc
(d)
199,340‌
14,464‌
Guidewire
Software
Inc
(d)
78,070‌
8,654‌
MSCI
Inc
14,598‌
4,873‌
RealPage
Inc
(d)
103,634‌
6,737‌
Slack
Technologies
Inc
(d)
102,580‌
3,189‌
Schedule
of
Investments
MidCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
70
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Tyler
Technologies
Inc
(d)
4,836‌
$
1,678‌
$
66,352‌
Telecommunications
-
1.92%
GCI
Liberty
Inc
(d)
73,331‌
5,216‌
Motorola
Solutions
Inc
36,982‌
5,182‌
$
10,398‌
TOTAL
COMMON
STOCKS
$
541,07
2‌
Total
Investments
$
542,19
2‌
Other
Assets
and
Liabilities
-  (0.32)%
(1,75
1‌
)
TOTAL
NET
ASSETS
-
100.00%
$
540,441‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$197
or
0.04%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Sector
Percent
Financial
25.08‌%
Consumer,
Cyclical
22.23‌%
Technology
13.92‌%
Industrial
13.08‌%
Consumer,
Non-cyclical
12.27‌%
Communications
10.63‌%
Utilities
2.22‌%
Basic
Materials
0.68‌%
Money
Market
Funds
0.21‌%
Other
Assets
and
Liabilities
(0.32‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
252‌
$
97,945‌
$
97,274‌
$
923‌
$
252‌
$
97,945‌
$
97,274‌
$
923‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
3‌
$
—‌
$
—‌
$
—‌
$
3‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
Capital
Appreciation
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
71
INVESTMENT
COMPANIES
-
1.51%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.51%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
2,158,758‌
$
2,159‌
TOTAL
INVESTMENT
COMPANIES
$
2,159‌
COMMON
STOCKS
-
99.07%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
1.18%
Northrop
Grumman
Corp
3,580‌
$
1,101‌
Teledyne
Technologies
Inc
(b)
1,909‌
593‌
$
1,694‌
Apparel
-
1.93%
Deckers
Outdoor
Corp
(b)
9,278‌
1,822‌
NIKE
Inc
9,575‌
939‌
$
2,761‌
Automobile
Manufacturers
-
0.87%
PACCAR
Inc
16,584‌
1,241‌
Banks
-
3.34%
JPMorgan
Chase
&
Co
32,602‌
3,067‌
PNC
Financial
Services
Group
Inc/The
16,244‌
1,709‌
$
4,776‌
Beverages
-
2.45%
Keurig
Dr
Pepper
Inc
23,034‌
654‌
PepsiCo
Inc
21,510‌
2,845‌
$
3,499‌
Chemicals
-
1.09%
FMC
Corp
15,614‌
1,555‌
Commercial
Services
-
0.70%
PayPal
Holdings
Inc
(b)
5,774‌
1,006‌
Computers
-
5.42%
Apple
Inc
21,260‌
7,756‌
Consumer
Products
-
1.32%
Church
&
Dwight
Co
Inc
24,450‌
1,890‌
Diversified
Financial
Services
-
5.57%
Ameriprise
Financial
Inc
8,067‌
1,210‌
BlackRock
Inc
2,019‌
1,099‌
Charles
Schwab
Corp/The
37,679‌
1,271‌
Discover
Financial
Services
16,698‌
836‌
Nasdaq
Inc
7,775‌
929‌
Visa
Inc
13,583‌
2,624‌
$
7,969‌
Electric
-
3.33%
NextEra
Energy
Inc
10,586‌
2,543‌
Xcel
Energy
Inc
35,622‌
2,226‌
$
4,769‌
Electronics
-
1.91%
Honeywell
International
Inc
10,815‌
1,564‌
Roper
Technologies
Inc
3,017‌
1,171‌
$
2,735‌
Environmental
Control
-
1.06%
Republic
Services
Inc
16,696‌
1,370‌
Waste
Connections
Inc
1,555‌
146‌
$
1,516‌
Food
-
1.05%
McCormick
&
Co
Inc/MD
7,587‌
1,361‌
Tyson
Foods
Inc
2,390‌
143‌
$
1,504‌
Hand
&
Machine
Tools
-
0.52%
Snap-on
Inc
5,364‌
743‌
Healthcare
-
Products
-
4.75%
Abbott
Laboratories
14,816‌
1,355‌
Edwards
Lifesciences
Corp
(b)
11,622‌
803‌
Medtronic
PLC
14,432‌
1,323‌
Thermo
Fisher
Scientific
Inc
6,742‌
2,443‌
Varian
Medical
Systems
Inc
(b)
7,065‌
866‌
$
6,790‌
Healthcare
-
Services
-
1.99%
UnitedHealth
Group
Inc
6,469‌
1,908‌
Universal
Health
Services
Inc
10,052‌
934‌
$
2,842‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
3.24%
Chubb
Ltd
7,321‌
$
927‌
Fidelity
National
Financial
Inc
37,556‌
1,151‌
Marsh
&
McLennan
Cos
Inc
16,858‌
1,810‌
Progressive
Corp/The
9,247‌
741‌
$
4,629‌
Internet
-
10.08%
Alphabet
Inc
-
A
Shares
(b)
2,992‌
4,243‌
Amazon.com
Inc
(b)
2,510‌
6,925‌
Facebook
Inc
(b)
10,557‌
2,397‌
Netflix
Inc
(b)
1,879‌
855‌
$
14,420‌
Machinery
-
Diversified
-
0.91%
Deere
&
Co
8,293‌
1,303‌
Media
-
1.87%
Comcast
Corp
-
Class
A
38,191‌
1,489‌
Nexstar
Media
Group
Inc
3,853‌
322‌
Walt
Disney
Co/The
7,716‌
860‌
$
2,671‌
Miscellaneous
Manufacturers
-
0.49%
3M
Co
4,518‌
705‌
Oil
&
Gas
-
2.22%
Chevron
Corp
23,822‌
2,126‌
Valero
Energy
Corp
17,740‌
1,043‌
$
3,169‌
Packaging
&
Containers
-
1.04%
Ball
Corp
21,510‌
1,495‌
Pharmaceuticals
-
7.49%
Becton
Dickinson
and
Co
8,860‌
2,120‌
Bristol-Myers
Squibb
Co
29,534‌
1,737‌
DexCom
Inc
(b)
1,252‌
507‌
Johnson
&
Johnson
13,098‌
1,842‌
Merck
&
Co
Inc
32,466‌
2,510‌
Pfizer
Inc
28,001‌
916‌
Roche
Holding
AG
ADR
24,734‌
1,073‌
$
10,705‌
REITs
-
3.20%
Alexandria
Real
Estate
Equities
Inc
14,898‌
2,417‌
American
Tower
Corp
1,150‌
297‌
Extra
Space
Storage
Inc
10,294‌
951‌
Prologis
Inc
9,705‌
906‌
$
4,571‌
Retail
-
5.94%
Costco
Wholesale
Corp
6,675‌
2,024‌
Home
Depot
Inc/The
10,158‌
2,545‌
Lululemon
Athletica
Inc
(b)
6,453‌
2,013‌
Starbucks
Corp
8,941‌
658‌
Target
Corp
10,463‌
1,255‌
$
8,495‌
Semiconductors
-
5.17%
Broadcom
Inc
4,861‌
1,534‌
Lam
Research
Corp
5,373‌
1,738‌
Microchip
Technology
Inc
12,380‌
1,304‌
NVIDIA
Corp
3,137‌
1,192‌
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
28,722‌
1,630‌
$
7,398‌
Software
-
12.90%
Adobe
Inc
(b)
8,044‌
3,502‌
Fair
Isaac
Corp
(b)
4,910‌
2,052‌
Fidelity
National
Information
Services
Inc
17,053‌
2,287‌
Microsoft
Corp
39,881‌
8,116‌
salesforce.com
Inc
(b)
5,479‌
1,026‌
ServiceNow
Inc
(b)
3,602‌
1,459‌
$
18,442‌
Telecommunications
-
4.23%
Cisco
Systems
Inc
28,986‌
1,352‌
T-Mobile
US
Inc
(b)
22,905‌
2,386‌
T-Mobile
US
Inc
-
Rights
(b)
22,905‌
4‌
Schedule
of
Investments
Principal
Capital
Appreciation
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
72
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Telecommunications
(continued)
Verizon
Communications
Inc
41,781‌
$
2,303‌
$
6,045‌
Toys,
Games
&
Hobbies
-
0.11%
Hasbro
Inc
2,013‌
151‌
Transportation
-
1.70%
Expeditors
International
of
Washington
Inc
13,013‌
990‌
Union
Pacific
Corp
8,518‌
1,440‌
$
2,430‌
TOTAL
COMMON
STOCKS
$
141,675‌
Total
Investments
$
143,834‌
Other
Assets
and
Liabilities
-  (0.58)%
(825‌)
TOTAL
NET
ASSETS
-
100.00%
$
143,009‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (unaudited)
Sector
Percent
Technology
23.49‌%
Consumer,
Non-cyclical
19.75‌%
Communications
16.18‌%
Financial
15.35‌%
Consumer,
Cyclical
8.85‌%
Industrial
8.81‌%
Utilities
3.33‌%
Energy
2.22‌%
Money
Market
Funds
1.51‌%
Basic
Materials
1.09‌%
Other
Assets
and
Liabilities
(0.58‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,945‌
$
17,019‌
$
17,805‌
$
2,159‌
$
2,945‌
$
17,019‌
$
17,805‌
$
2,159‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
11‌
$
—‌
$
—‌
$
—‌
$
11‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Real
Estate
Securities
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
73
INVESTMENT
COMPANIES
-
0.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.03%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
41,532‌
$
42‌
TOTAL
INVESTMENT
COMPANIES
$
42‌
COMMON
STOCKS
-
99.49%
Shares
Held
Value
(000's)
Lodging
-
0.70%
Choice
Hotels
International
Inc
7,910‌
$
624‌
Hilton
Worldwide
Holdings
Inc
3,969‌
292‌
$
916‌
REITs
-
98.79%
Alexandria
Real
Estate
Equities
Inc
27,579‌
4,475‌
American
Assets
Trust
Inc
25,911‌
721‌
American
Campus
Communities
Inc
11,270‌
394‌
American
Homes
4
Rent
197,098‌
5,302‌
American
Tower
Corp
15,245‌
3,941‌
Apartment
Investment
and
Management
Co
76,197‌
2,868‌
AvalonBay
Communities
Inc
54,838‌
8,480‌
Boston
Properties
Inc
29,191‌
2,638‌
Brandywine
Realty
Trust
61,568‌
671‌
Camden
Property
Trust
23,443‌
2,139‌
CoreSite
Realty
Corp
16,756‌
2,029‌
Cousins
Properties
Inc
85,229‌
2,542‌
CubeSmart
72,374‌
1,953‌
CyrusOne
Inc
30,195‌
2,197‌
DiamondRock
Hospitality
Co
92,435‌
511‌
Digital
Realty
Trust
Inc
6,933‌
985‌
Equinix
Inc
18,469‌
12,971‌
Equity
LifeStyle
Properties
Inc
45,850‌
2,865‌
Equity
Residential
32,218‌
1,895‌
Essential
Properties
Realty
Trust
Inc
72,265‌
1,072‌
Essex
Property
Trust
Inc
20,803‌
4,767‌
Extra
Space
Storage
Inc
31,520‌
2,912‌
First
Industrial
Realty
Trust
Inc
34,463‌
1,325‌
Healthcare
Trust
of
America
Inc
157,934‌
4,188‌
Healthpeak
Properties
Inc
89,337‌
2,462‌
Invitation
Homes
Inc
275,759‌
7,592‌
Kilroy
Realty
Corp
30,543‌
1,793‌
Park
Hotels
&
Resorts
Inc
106,360‌
1,052‌
Prologis
Inc
152,937‌
14,274‌
PS
Business
Parks
Inc
1,385‌
183‌
Public
Storage
6,391‌
1,226‌
Regency
Centers
Corp
48,485‌
2,225‌
Rexford
Industrial
Realty
Inc
46,253‌
1,916‌
Sabra
Health
Care
REIT
Inc
114,912‌
1,658‌
Saul
Centers
Inc
14,445‌
466‌
Simon
Property
Group
Inc
19,261‌
1,317‌
STORE
Capital
Corp
141,972‌
3,380‌
Sun
Communities
Inc
32,055‌
4,349‌
Taubman
Centers
Inc
7,033‌
266‌
Terreno
Realty
Corp
54,190‌
2,853‌
VICI
Properties
Inc
107,614‌
2,173‌
Welltower
Inc
111,496‌
5,770‌
Weyerhaeuser
Co
32,160‌
722‌
$
129,518‌
TOTAL
COMMON
STOCKS
$
130,434‌
Total
Investments
$
130,476‌
Other
Assets
and
Liabilities
-  0.48
%
633‌
TOTAL
NET
ASSETS
-
100.00%
$
131,109‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Sector
Percent
Financial
98.79‌%
Consumer,
Cyclical
0.70‌%
Money
Market
Funds
0.03‌%
Other
Assets
and
Liabilities
0.48‌%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Real
Estate
Securities
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
74
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,130‌
$
12,836‌
$
13,924‌
$
42‌
$
1,130‌
$
12,836‌
$
13,924‌
$
42‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
3‌
$
—‌
$
—‌
$
—‌
$
3‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
Schedule
of
Investments
SAM
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
75
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.78%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
11,310,294‌
$
11,310‌
Principal
Exchange-Traded
Funds
-
20.44%
Principal
Active
Global
Dividend
Income
ETF
(
a)
1,219,500‌
32,042‌
Principal
Active
Income
ETF
(
a)
249,900‌
9,028‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
160,200‌
4,289‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
2,304,200‌
69,243‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
544,600‌
14,888‌
$
129,490‌
Principal
Funds,
Inc.
Class
R-6
-
49.43%
Blue
Chip
Fund
(
a)
2,077,334‌
61,593‌
Core
Fixed
Income
Fund
(
a)
7,513,863‌
76,416‌
Diversified
International
Fund
(
a)
6,025,324‌
71,099‌
Diversified
Real
Asset
Fund
(
a)
1,795,161‌
18,706‌
Edge
MidCap
Fund
(
a)
1,803,546‌
24,835‌
Global
Real
Estate
Securities
Fund
(
a)
1,895,052‌
16,260‌
High
Yield
Fund
(
a)
1,368,901‌
9,158‌
International
Small
Company
Fund
(
a)
870,682‌
8,402‌
Origin
Emerging
Markets
Fund
(
a)
835,220‌
9,237‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
1,786,713‌
17,545‌
$
313,251‌
Principal
Funds,
Inc.
Institutional
Class
-
9.38%
Inflation
Protection
Fund
(
a)
1,043,882‌
9,489‌
Short-Term
Income
Fund
(
a)
3,988,060‌
49,930‌
$
59,419‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
18.99%
Equity
Income
Account
(
a)
3,198,282‌
76,919‌
Government
&
High
Quality
Bond
Account
(
a)
4,321,018‌
43,426‌
$
120,345‌
TOTAL
INVESTMENT
COMPANIES
$
633,815‌
Total
Investments
$
633,815‌
Other
Assets
and
Liabilities
-  (
0.02)%
(156‌)
TOTAL
NET
ASSETS
-
100.00%
$
633,659‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
45.82‌%
Domestic
Equity
Funds
39.06‌%
International
Equity
Funds
10.41‌%
Specialty
Funds
2.95‌%
Money
Market
Funds
1.78‌%
Other
Assets
and
Liabilities
(
0.02‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
76
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
64,076‌
$
92‌
$
8,747‌
$
61,593‌
Core
Fixed
Income
Fund
84,277‌
1,568‌
12,232‌
76,416‌
Diversified
International
Fund
82,310‌
276‌
4,802‌
71,099‌
Diversified
Real
Asset
Fund
22,012‌
106‌
1,137‌
18,706‌
Edge
MidCap
Fund
29,239‌
124‌
1,353‌
24,835‌
Equity
Income
Account
92,733‌
311‌
2,833‌
76,919‌
Global
Real
Estate
Securities
Fund
20,186‌
135‌
610‌
16,260‌
Government
&
High
Quality
Bond
Account
46,640‌
486‌
4,808‌
43,426‌
High
Yield
Fund
10,183‌
462‌
796‌
9,158‌
Inflation
Protection
Fund
10,145‌
65‌
1,205‌
9,489‌
International
Small
Company
Fund
10,223‌
59‌
339‌
8,402‌
Origin
Emerging
Markets
Fund
10,362‌
35‌
721‌
9,237‌
Principal
Active
Global
Dividend
Income
ETF
36,652‌
—‌
—‌
32,042‌
Principal
Active
Income
ETF
9,639‌
605‌
—‌
9,028‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
2,721‌
9,193‌
604‌
11,310‌
Principal
Investment
Grade
Corporate
Active
ETF
5,329‌
—‌
1,198‌
4,289‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
72,121‌
—‌
—‌
69,243‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
17,732‌
—‌
—‌
14,888‌
Short-Term
Income
Fund
53,153‌
856‌
5,000‌
49,930‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
18,459‌
663‌
522‌
17,545‌
$
698,192‌
$
15,036‌
$
46,907‌
$
633,815‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
1,223‌
$
—‌
$
4,949‌
Core
Fixed
Income
Fund
1,057‌
61‌
—‌
2,742‌
Diversified
International
Fund
—‌
(8‌)
—‌
(6,677‌)
Diversified
Real
Asset
Fund
—‌
(55‌)
—‌
(2,220‌)
Edge
MidCap
Fund
—‌
(96‌)
—‌
(3,079‌)
Equity
Income
Account
—‌
86‌
—‌
(13,378‌)
Global
Real
Estate
Securities
Fund
28‌
(52‌)
—‌
(3,399‌)
Government
&
High
Quality
Bond
Account
—‌
(9‌)
—‌
1,117‌
High
Yield
Fund
261‌
(22‌)
—‌
(669‌)
Inflation
Protection
Fund
13‌
28‌
—‌
456‌
International
Small
Company
Fund
—‌
(10‌)
—‌
(1,531‌)
Origin
Emerging
Markets
Fund
—‌
(26‌)
—‌
(413‌)
Principal
Active
Global
Dividend
Income
ETF
164‌
—‌
—‌
(4,610‌)
Principal
Active
Income
ETF
192‌
—‌
—‌
(1,216‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
15‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
67‌
90‌
—‌
68‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
338‌
—‌
—‌
(2,878‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
43‌
—‌
—‌
(2,844‌)
Short-Term
Income
Fund
521‌
14‌
—‌
907‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
414‌
(46‌)
—‌
(1,009‌)
$
3,113‌
$
1,178‌
$
—‌
$
(33,684‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
77
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.86%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
3,283,360‌
$
3,283‌
Principal
Exchange-Traded
Funds
-
13.83%
Principal
Active
Global
Dividend
Income
ETF
(
a)
133,000‌
3,495‌
Principal
Active
Income
ETF
(
a)
132,100‌
4,772‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
65,800‌
1,762‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
396,800‌
11,924‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
91,200‌
2,493‌
$
24,446‌
Principal
Funds,
Inc.
Class
R-6
-
51.63%
Blue
Chip
Fund
(
a)
412,458‌
12,229‌
Core
Fixed
Income
Fund
(
a)
3,170,670‌
32,246‌
Diversified
International
Fund
(
a)
1,198,984‌
14,148‌
Diversified
Real
Asset
Fund
(
a)
441,940‌
4,605‌
Edge
MidCap
Fund
(
a)
363,895‌
5,011‌
Global
Diversified
Income
Fund
(
a)
380,941‌
4,560‌
Global
Real
Estate
Securities
Fund
(
a)
415,424‌
3,564‌
High
Yield
Fund
(
a)
591,143‌
3,955‌
International
Small
Company
Fund
(
a)
169,496‌
1,636‌
Origin
Emerging
Markets
Fund
(
a)
161,550‌
1,787‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
769,585‌
7,557‌
$
91,298‌
Principal
Funds,
Inc.
Institutional
Class
-
13.98%
Inflation
Protection
Fund
(
a)
489,790‌
4,452‌
Short-Term
Income
Fund
(
a)
1,619,275‌
20,273‌
$
24,725‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
18.73%
Equity
Income
Account
(
a)
611,317‌
14,702‌
Government
&
High
Quality
Bond
Account
(
a)
1,832,491‌
18,417‌
$
33,119‌
TOTAL
INVESTMENT
COMPANIES
$
176,871‌
Total
Investments
$
176,871‌
Other
Assets
and
Liabilities
-  (
0.03)%
(49‌)
TOTAL
NET
ASSETS
-
100.00%
$
176,822‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
60.85‌%
Domestic
Equity
Funds
26.21‌%
International
Equity
Funds
5.93‌%
Specialty
Funds
5.18‌%
Money
Market
Funds
1.86‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
78
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
12,479‌
$
166‌
$
1,644‌
$
12,229‌
Core
Fixed
Income
Fund
34,488‌
1,596‌
5,005‌
32,246‌
Diversified
International
Fund
15,831‌
423‌
821‌
14,148‌
Diversified
Real
Asset
Fund
5,408‌
107‌
350‌
4,605‌
Edge
MidCap
Fund
5,620‌
199‌
209‌
5,011‌
Equity
Income
Account
17,198‌
626‌
647‌
14,702‌
Global
Diversified
Income
Fund
5,124‌
349‌
226‌
4,560‌
Global
Real
Estate
Securities
Fund
4,290‌
195‌
153‌
3,564‌
Government
&
High
Quality
Bond
Account
19,609‌
779‌
2,438‌
18,417‌
High
Yield
Fund
4,201‌
321‌
265‌
3,955‌
Inflation
Protection
Fund
4,712‌
190‌
678‌
4,452‌
International
Small
Company
Fund
2,003‌
15‌
85‌
1,636‌
Origin
Emerging
Markets
Fund
2,005‌
29‌
159‌
1,787‌
Principal
Active
Global
Dividend
Income
ETF
3,997‌
—‌
—‌
3,495‌
Principal
Active
Income
ETF
5,199‌
216‌
—‌
4,772‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
580‌
2,920‌
217‌
3,283‌
Principal
Investment
Grade
Corporate
Active
ETF
1,906‌
—‌
201‌
1,762‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
12,420‌
—‌
—‌
11,924‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
2,969‌
—‌
—‌
2,493‌
Short-Term
Income
Fund
21,442‌
938‌
2,471‌
20,273‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
7,903‌
569‌
431‌
7,557‌
$
189,384‌
$
9,638‌
$
16,000‌
$
176,871‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
91‌
$
—‌
$
1,137‌
Core
Fixed
Income
Fund
442‌
(30‌)
—‌
1,197‌
Diversified
International
Fund
—‌
(4‌)
—‌
(1,281‌)
Diversified
Real
Asset
Fund
—‌
(16‌)
—‌
(544‌)
Edge
MidCap
Fund
—‌
(8‌)
—‌
(591‌)
Equity
Income
Account
—‌
12‌
—‌
(2,487‌)
Global
Diversified
Income
Fund
118‌
(29‌)
—‌
(658‌)
Global
Real
Estate
Securities
Fund
6‌
(31‌)
—‌
(737‌)
Government
&
High
Quality
Bond
Account
—‌
(16‌)
—‌
483‌
High
Yield
Fund
112‌
(21‌)
—‌
(281‌)
Inflation
Protection
Fund
6‌
14‌
—‌
214‌
International
Small
Company
Fund
—‌
1‌
—‌
(298‌)
Origin
Emerging
Markets
Fund
—‌
(8‌)
—‌
(80‌)
Principal
Active
Global
Dividend
Income
ETF
18‌
—‌
—‌
(502‌)
Principal
Active
Income
ETF
102‌
—‌
—‌
(643‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
3‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
26‌
15‌
—‌
42‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
58‌
—‌
—‌
(496‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
7‌
—‌
—‌
(476‌)
Short-Term
Income
Fund
211‌
—‌
—‌
364‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
179‌
(53‌)
—‌
(431‌)
$
1,288‌
$
(83‌)
$
—‌
$
(6,068‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
79
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.68%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
5,521,039‌
$
5,521‌
Principal
Exchange-Traded
Funds
-
21.37%
Principal
Active
Global
Dividend
Income
ETF
(
a)
401,000‌
10,536‌
Principal
Active
Income
ETF
(
a)
122,900‌
4,440‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
50,000‌
1,339‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
1,451,300‌
43,613‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
375,400‌
10,262‌
$
70,190‌
Principal
Funds,
Inc.
Class
R-6
-
52.70%
Blue
Chip
Fund
(
a)
1,527,766‌
45,298‌
Core
Fixed
Income
Fund
(
a)
1,466,457‌
14,914‌
Diversified
International
Fund
(
a)
4,698,221‌
55,439‌
Diversified
Real
Asset
Fund
(
a)
1,051,538‌
10,957‌
Edge
MidCap
Fund
(
a)
1,413,996‌
19,471‌
Global
Real
Estate
Securities
Fund
(
a)
1,160,983‌
9,961‌
International
Small
Company
Fund
(
a)
624,732‌
6,029‌
Origin
Emerging
Markets
Fund
(
a)
570,139‌
6,306‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
481,018‌
4,723‌
$
173,098‌
Principal
Funds,
Inc.
Institutional
Class
-
4.66%
Short-Term
Income
Fund
(
a)
1,222,609‌
15,307‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
19.62%
Equity
Income
Account
(
a)
2,219,900‌
53,388‌
Government
&
High
Quality
Bond
Account
(
a)
1,099,771‌
11,053‌
$
64,441‌
TOTAL
INVESTMENT
COMPANIES
$
328,557‌
Total
Investments
$
328,557‌
Other
Assets
and
Liabilities
-  (
0.03)%
(100‌)
TOTAL
NET
ASSETS
-
100.00%
$
328,457‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
52.37‌%
Fixed
Income
Funds
32.65‌%
International
Equity
Funds
9.99‌%
Specialty
Funds
3.34‌%
Money
Market
Funds
1.68‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
80
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
44,819‌
$
171‌
$
3,975‌
$
45,298‌
Core
Fixed
Income
Fund
17,340‌
633‌
3,521‌
14,914‌
Diversified
International
Fund
61,484‌
1,223‌
2,229‌
55,439‌
Diversified
Real
Asset
Fund
12,484‌
234‌
457‌
10,957‌
Edge
MidCap
Fund
21,539‌
770‌
552‌
19,471‌
Equity
Income
Account
62,031‌
1,675‌
1,366‌
53,388‌
Global
Real
Estate
Securities
Fund
11,975‌
448‌
387‌
9,961‌
Government
&
High
Quality
Bond
Account
11,078‌
336‌
628‌
11,053‌
International
Small
Company
Fund
6,926‌
281‌
149‌
6,029‌
Origin
Emerging
Markets
Fund
7,147‌
35‌
555‌
6,306‌
Principal
Active
Global
Dividend
Income
ETF
12,052‌
—‌
—‌
10,536‌
Principal
Active
Income
ETF
4,674‌
363‌
—‌
4,440‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
826‌
5,058‌
363‌
5,521‌
Principal
Investment
Grade
Corporate
Active
ETF
1,685‌
—‌
397‌
1,339‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
46,991‌
—‌
1,139‌
43,613‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
12,223‌
—‌
—‌
10,262‌
Short-Term
Income
Fund
15,935‌
386‌
1,291‌
15,307‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
5,325‌
172‌
464‌
4,723‌
$
356,534‌
$
11,785‌
$
17,473‌
$
328,557‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
206‌
$
—‌
$
4,077‌
Core
Fixed
Income
Fund
210‌
(50‌)
—‌
512‌
Diversified
International
Fund
—‌
(129‌)
—‌
(4,910‌)
Diversified
Real
Asset
Fund
—‌
(43‌)
—‌
(1,261‌)
Edge
MidCap
Fund
—‌
(66‌)
—‌
(2,220‌)
Equity
Income
Account
—‌
(13‌)
—‌
(8,939‌)
Global
Real
Estate
Securities
Fund
17‌
(74‌)
—‌
(2,001‌)
Government
&
High
Quality
Bond
Account
—‌
(2‌)
—‌
269‌
International
Small
Company
Fund
—‌
(5‌)
—‌
(1,024‌)
Origin
Emerging
Markets
Fund
—‌
(3‌)
—‌
(318‌)
Principal
Active
Global
Dividend
Income
ETF
54‌
—‌
—‌
(1,516‌)
Principal
Active
Income
ETF
94‌
—‌
—‌
(597‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
6‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
21‌
30‌
—‌
21‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
213‌
(233‌)
—‌
(2,006‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
29‌
—‌
—‌
(1,961‌)
Short-Term
Income
Fund
158‌
(1‌)
—‌
278‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
113‌
(31‌)
—‌
(279‌)
$
915‌
$
(414‌)
$
—‌
$
(21,875‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
81
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.96%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
3,402,309‌
$
3,402‌
Principal
Exchange-Traded
Funds
-
15.62%
Principal
Active
Global
Dividend
Income
ETF
(
a)
505,300‌
13,276‌
Principal
Active
Income
ETF
(
a)
126,600‌
4,574‌
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
100,800‌
2,699‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
219,600‌
6,599‌
$
27,148‌
Principal
Funds,
Inc.
Class
R-6
-
44.83%
Blue
Chip
Fund
(
a)
109,123‌
3,236‌
Core
Fixed
Income
Fund
(
a)
4,148,189‌
42,187‌
Edge
MidCap
Fund
(
a)
196,319‌
2,703‌
Global
Diversified
Income
Fund
(
a)
684,662‌
8,195‌
Global
Real
Estate
Securities
Fund
(
a)
559,240‌
4,798‌
High
Yield
Fund
(
a)
1,107,240‌
7,408‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
956,374‌
9,392‌
$
77,919‌
Principal
Funds,
Inc.
Institutional
Class
-
18.24%
Inflation
Protection
Fund
(
a)
1,061,408‌
9,648‌
Short-Term
Income
Fund
(
a)
1,760,951‌
22,047‌
$
31,695‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
19.38%
Equity
Income
Account
(
a)
480,618‌
11,559‌
Government
&
High
Quality
Bond
Account
(
a)
2,201,712‌
22,127‌
$
33,686‌
TOTAL
INVESTMENT
COMPANIES
$
173,850‌
Total
Investments
$
173,850‌
Other
Assets
and
Liabilities
-  (
0.03)%
(48‌)
TOTAL
NET
ASSETS
-
100.00%
$
173,802‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
69.08‌%
Domestic
Equity
Funds
13.87‌%
International
Equity
Funds
10.40‌%
Specialty
Funds
4.72‌%
Money
Market
Funds
1.96‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
82
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
3,401‌
$
122‌
$
640‌
$
3,236‌
Core
Fixed
Income
Fund
45,508‌
1,988‌
6,874‌
42,187‌
Edge
MidCap
Fund
2,998‌
180‌
161‌
2,703‌
Equity
Income
Account
13,572‌
926‌
1,061‌
11,559‌
Global
Diversified
Income
Fund
9,319‌
669‌
578‌
8,195‌
Global
Real
Estate
Securities
Fund
6,690‌
121‌
1,018‌
4,798‌
Government
&
High
Quality
Bond
Account
23,476‌
903‌
2,806‌
22,127‌
High
Yield
Fund
8,171‌
520‌
731‌
7,408‌
Inflation
Protection
Fund
11,203‌
324‌
2,395‌
9,648‌
Principal
Active
Global
Dividend
Income
ETF
15,187‌
—‌
—‌
13,276‌
Principal
Active
Income
ETF
5,100‌
90‌
—‌
4,574‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
511‌
2,981‌
90‌
3,402‌
Principal
Investment
Grade
Corporate
Active
ETF
2,864‌
—‌
253‌
2,699‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
6,874‌
—‌
—‌
6,599‌
Short-Term
Income
Fund
23,652‌
907‌
2,908‌
22,047‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
9,918‌
707‌
667‌
9,392‌
$
188,444‌
$
10,438‌
$
20,182‌
$
173,850‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
46‌
$
—‌
$
307‌
Core
Fixed
Income
Fund
581‌
30‌
—‌
1,535‌
Edge
MidCap
Fund
—‌
(21‌)
—‌
(293‌)
Equity
Income
Account
—‌
(16‌)
—‌
(1,862‌)
Global
Diversified
Income
Fund
213‌
(55‌)
—‌
(1,160‌)
Global
Real
Estate
Securities
Fund
8‌
90‌
—‌
(1,085‌)
Government
&
High
Quality
Bond
Account
—‌
(21‌)
—‌
575‌
High
Yield
Fund
215‌
(40‌)
—‌
(512‌)
Inflation
Protection
Fund
15‌
62‌
—‌
454‌
Principal
Active
Global
Dividend
Income
ETF
68‌
—‌
—‌
(1,911‌)
Principal
Active
Income
ETF
98‌
—‌
—‌
(616‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
4‌
—‌
—‌
—‌
Principal
Investment
Grade
Corporate
Active
ETF
39‌
19‌
—‌
69‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
32‌
—‌
—‌
(275‌)
Short-Term
Income
Fund
231‌
3‌
—‌
393‌
Spectrum
Preferred
and
Capital
Securities
Income
Fund
223‌
(44‌)
—‌
(522‌)
$
1,727‌
$
53‌
$
—‌
$
(4,903‌)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
June
30,
2020
(unaudited)
See
accompanying
notes.
83
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.56%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(b),(c)
4,510,282‌
$
4,510‌
Principal
Exchange-Traded
Funds
-
16.11%
Principal
Active
Global
Dividend
Income
ETF
(
a)
606,000‌
15,922‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
665,000‌
19,984‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
389,100‌
10,637‌
$
46,543‌
Principal
Funds,
Inc.
Class
R-6
-
62.10%
Blue
Chip
Fund
(
a)
1,588,916‌
47,112‌
Diversified
International
Fund
(
a)
5,192,262‌
61,269‌
Edge
MidCap
Fund
(
a)
1,377,834‌
18,973‌
Global
Real
Estate
Securities
Fund
(
a)
1,602,808‌
13,752‌
International
Small
Company
Fund
(
a)
697,756‌
6,733‌
LargeCap
Growth
Fund
I
(
a)
911,950‌
16,160‌
Origin
Emerging
Markets
Fund
(
a)
1,394,324‌
15,421‌
$
179,420‌
Principal
Funds,
Inc.
Institutional
Class
-
2.30%
LargeCap
Value
Fund
III
(
a)
462,414‌
6,645‌
Principal
Variable
Contracts
Funds,
Inc.  Class
1
-
17.96%
Equity
Income
Account
(
a)
2,158,388‌
51,909‌
TOTAL
INVESTMENT
COMPANIES
$
289,027‌
Total
Investments
$
289,027‌
Other
Assets
and
Liabilities
-  (
0.03)%
(93‌)
TOTAL
NET
ASSETS
-
100.00%
$
288,934‌
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary  (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
59.33‌%
Fixed
Income
Funds
21.20‌%
International
Equity
Funds
17.94‌%
Money
Market
Funds
1.56‌%
Other
Assets
and
Liabilities
(
0.03‌)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
48,441‌
$
616‌
$
6,095‌
$
47,112‌
Diversified
International
Fund
67,657‌
1,827‌
2,595‌
61,269‌
Edge
MidCap
Fund
21,089‌
761‌
628‌
18,973‌
Equity
Income
Account
59,669‌
2,519‌
1,563‌
51,909‌
Global
Real
Estate
Securities
Fund
16,031‌
1,116‌
576‌
13,752‌
International
Small
Company
Fund
7,873‌
415‌
392‌
6,733‌
LargeCap
Growth
Fund
I
15,867‌
413‌
1,633‌
16,160‌
LargeCap
Value
Fund
III
7,700‌
392‌
254‌
6,645‌
Origin
Emerging
Markets
Fund
16,906‌
329‌
1,108‌
15,421‌
Principal
Active
Global
Dividend
Income
ETF
18,213‌
—‌
—‌
15,922‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
696‌
3,814‌
—‌
4,510‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
22,380‌
—‌
1,140‌
19,984‌
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
12,669‌
—‌
—‌
10,637‌
$
315,191‌
$
12,202‌
$
15,984‌
$
289,027‌
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
—‌
$
(94‌)
$
—‌
$
4,244‌
Diversified
International
Fund
—‌
(266‌)
—‌
(5,354‌)
Edge
MidCap
Fund
—‌
(88‌)
—‌
(2,161‌)
Equity
Income
Account
—‌
(165‌)
—‌
(8,551‌)
Global
Real
Estate
Securities
Fund
25‌
(97‌)
—‌
(2,722‌)
International
Small
Company
Fund
—‌
(46‌)
—‌
(1,117‌)
LargeCap
Growth
Fund
I
—‌
(31‌)
—‌
1,544‌
LargeCap
Value
Fund
III
—‌
(47‌)
—‌
(1,146‌)
Origin
Emerging
Markets
Fund
—‌
(39‌)
—‌
(667‌)
Principal
Active
Global
Dividend
Income
ETF
82‌
—‌
—‌
(2,291‌)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
5‌
—‌
—‌
—‌
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
97‌
(177‌)
—‌
(1,079‌)
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
30‌
—‌
—‌
(2,032‌)
$
239‌
$
(1,050‌)
$
—‌
$
(21,332‌)
Amounts
in
thousands.
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
84
INVESTMENT
COMPANIES
-
2.70%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.70%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09
%
(a),(b)
1,593,776‌
$
1,594‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00
%
(a),(c),(d)
2,164,588‌
2,165‌
$
3,759‌
TOTAL
INVESTMENT
COMPANIES
$
3,759‌
BONDS
-
86.88%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
0.57%
General
Dynamics
Corp
3.00
%,
05
/11/2021
$
250‌
$
256‌
3.25
%,
04
/01/2025
100‌
111‌
Northrop
Grumman
Corp
2.08
%,
10
/15/2020
150‌
151‌
Raytheon
Technologies
Corp
3.20
%,
03
/15/2024
(e)
250‌
269‌
$
787‌
Agriculture
-
0.15%
Cargill
Inc
1.38
%,
07
/23/2023
(e)
200‌
203‌
Airlines
-
0.28%
Alaska
Airlines
2020-1
Class
A
Pass
Through
Trust
4.80
%,
02
/15/2029
(e),(f)
200‌
202‌
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95
%,
07
/15/2024
241‌
195‌
$
397‌
Automobile
Asset
Backed
Securities
-
5.78%
Americredit
Automobile
Receivables
Trust
2018-1
3.07
%,
12
/19/2022
148‌
150‌
Americredit
Automobile
Receivables
Trust
2018-2
3.15
%,
03
/20/2023
175‌
177‌
Americredit
Automobile
Receivables
Trust
2018-3
3.11
%,
01
/18/2022
3‌
3‌
Americredit
Automobile
Receivables
Trust
2019-1
2.93
%,
06
/20/2022
82‌
82‌
2.97
%,
11
/20/2023
200‌
204‌
Americredit
Automobile
Receivables
Trust
2019-2
2.28
%,
01
/18/2024
400‌
408‌
2.43
%,
09
/19/2022
99‌
100‌
AmeriCredit
Automobile
Receivables
Trust
2019-3
2.17
%,
01
/18/2023
189‌
191‌
AmeriCredit
Automobile
Receivables
Trust
2020-1
1.10
%,
03
/20/2023
100‌
100‌
Capital
Auto
Receivables
Asset
Trust
2018-2
3.27
%,
06
/20/2023
(e)
193‌
194‌
CPS
Auto
Receivables
Trust
2019-A
3.18
%,
06
/15/2022
(e)
34‌
34‌
CPS
Auto
Receivables
Trust
2019-B
2.89
%,
05
/16/2022
(e)
50‌
50‌
CPS
Auto
Receivables
Trust
2019-C
2.55
%,
09
/15/2022
(e)
94‌
95‌
CPS
Auto
Receivables
Trust
2020-A
2.09
%,
05
/15/2023
(e)
151‌
152‌
CPS
Auto
Receivables
Trust
2020-B
1.15
%,
07
/17/2023
(e)
193‌
194‌
Ford
Credit
Auto
Owner
Trust
2015-REV2
2.44
%,
01
/15/2027
(e)
173‌
173‌
Ford
Credit
Auto
Owner
Trust
2016-REV2
2.03
%,
12
/15/2027
(e)
750‌
759‌
Ford
Credit
Auto
Owner
Trust
2017-REV1
2.62
%,
08
/15/2028
(e)
500‌
514‌
Ford
Credit
Auto
Owner
Trust
2018-REV2
3.47
%,
01
/15/2030
(e)
400‌
423‌
Ford
Credit
Auto
Owner
Trust
2019-REV1
3.52
%,
07
/15/2030
(e)
300‌
321‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
Ford
Credit
Auto
Owner
Trust
2020-REV1
2.04
%,
08
/15/2031
(e)
$
250‌
$
254‌
OneMain
Direct
Auto
Receivables
Trust
2018-1
3.43
%,
12
/16/2024
(e)
500‌
507‌
OneMain
Direct
Auto
Receivables
Trust
2019-1
3.63
%,
09
/14/2027
(e)
750‌
806‌
Santander
Drive
Auto
Receivables
Trust
2019-3
2.28
%,
02
/15/2022
177‌
177‌
TCF
Auto
Receivables
Owner
Trust
2016-PT1
1.93
%,
06
/15/2022
(e)
60‌
60‌
Toyota
Auto
Loan
Extended
Note
Trust
2019-1
2.56
%,
11
/25/2031
(e)
250‌
266‌
Toyota
Auto
Loan
Extended
Note
Trust
2020-1
1.35
%,
05
/25/2033
(e)
200‌
203‌
Westlake
Automobile
Receivables
Trust
2018-2
3.20
%,
01
/16/2024
(e)
46‌
46‌
Westlake
Automobile
Receivables
Trust
2018-3
2.98
%,
01
/18/2022
(e)
15‌
15‌
3.32
%,
10
/16/2023
(e)
300‌
302‌
Westlake
Automobile
Receivables
Trust
2019-1
3.06
%,
05
/16/2022
(e)
103‌
104‌
3.26
%,
10
/17/2022
(e)
350‌
355‌
Westlake
Automobile
Receivables
Trust
2019-3
2.15
%,
02
/15/2023
(e)
239‌
241‌
World
Omni
Select
Auto
Trust
2019-A
2.06
%,
08
/15/2023
379‌
382‌
$
8,042‌
Automobile
Floor
Plan
Asset
Backed
Securities
-
1.37%
Ally
Master
Owner
Trust
2.70
%,
01
/17/2023
500‌
504‌
3.29
%,
05
/15/2023
500‌
511‌
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II
0.81
%,
09
/25/2023
(e)
250‌
249‌
1.00
x
1
Month
USD
LIBOR
+
0.63%
Volvo
Financial
Equipment
Master
Owner
Trust
0.68
%,
11
/15/2022
(e)
250‌
250‌
1.00
x
1
Month
USD
LIBOR
+
0.50%
0.70
%,
07
/17/2023
(e)
400‌
398‌
1.00
x
1
Month
USD
LIBOR
+
0.52%
$
1,912‌
Automobile
Manufacturers
-
0.69%
General
Motors
Financial
Co
Inc
2.17
%,
04
/09/2021
300‌
298‌
3
Month
USD
LIBOR
+
0.85%
PACCAR
Financial
Corp
3.10
%,
05
/10/2021
250‌
256‌
Toyota
Motor
Credit
Corp
2.60
%,
01
/11/2022
400‌
412‌
$
966‌
Banks
-
20.22%
Bank
of
America
Corp
1.32
%,
06
/19/2026
(g),(h)
600‌
602‌
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.30
%,
01
/20/2023
350‌
353‌
3
Month
USD
LIBOR
+
1.16%
2.50
%,
10
/21/2022
500‌
512‌
2.63
%,
10
/19/2020
250‌
252‌
3.00
%,
12
/20/2023
(g)
430‌
452‌
3
Month
USD
LIBOR
+
0.79%
4.20
%,
08
/26/2024
500‌
555‌
Bank
of
New
York
Mellon
Corp/The
1.81
%,
10
/30/2023
500‌
506‌
3
Month
USD
LIBOR
+
1.05%
2.10
%,
10
/24/2024
250‌
263‌
2.50
%,
04
/15/2021
300‌
305‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
85
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
BNP
Paribas
SA
3.50
%,
03
/01/2023
(e)
$
250‌
$
265‌
Capital
One
NA
1.91
%,
01
/30/2023
600‌
599‌
3
Month
USD
LIBOR
+
1.15%
Citigroup
Inc
1.95
%,
04
/25/2022
200‌
201‌
3
Month
USD
LIBOR
+
0.96%
2.70
%,
03
/30/2021
900‌
915‌
3.50
%,
05
/15/2023
250‌
266‌
4.00
%,
08
/05/2024
274‌
299‌
4.04
%,
06
/01/2024
(g)
250‌
272‌
3
Month
USD
LIBOR
+
1.02%
Credit
Suisse
AG/New
York
NY
2.10
%,
11
/12/2021
250‌
255‌
Credit
Suisse
Group
AG
4.21
%,
06
/12/2024
(e),(g)
500‌
537‌
3
Month
USD
LIBOR
+
1.24%
Fifth
Third
Bancorp
2.60
%,
06
/15/2022
600‌
622‌
3.65
%,
01
/25/2024
200‌
218‌
4.30
%,
01
/16/2024
400‌
441‌
Fifth
Third
Bank
NA
2.25
%,
06
/14/2021
300‌
305‌
First
Republic
Bank/CA
1.91
%,
02
/12/2024
(g)
250‌
256‌
United
States
Secured
Overnight
Financing
Rate
+
0.62%
Goldman
Sachs
Group
Inc/The
3.00
%,
04
/26/2022
950‌
968‌
3.20
%,
02
/23/2023
300‌
318‌
HSBC
Holdings
PLC
2.63
%,
11
/07/2025
(g)
200‌
207‌
3
Month
USD
LIBOR
+
1.14%
3.95
%,
05
/18/2024
(g)
250‌
269‌
3
Month
USD
LIBOR
+
0.99%
Huntington
Bancshares
Inc/OH
2.63
%,
08
/06/2024
200‌
212‌
ING
Groep
NV
3.15
%,
03
/29/2022
450‌
468‌
JPMorgan
Chase
&
Co
1.51
%,
06
/01/2024
(g)
300‌
305‌
United
States
Secured
Overnight
Financing
Rate
+
1.46%
1.89
%,
04
/25/2023
1,000‌
1,003‌
3
Month
USD
LIBOR
+
0.90%
2.25
%,
10
/24/2023
500‌
506‌
3
Month
USD
LIBOR
+
1.23%
2.30
%,
08
/15/2021
250‌
250‌
4.25
%,
10
/15/2020
750‌
758‌
KeyBank
NA/Cleveland
OH
1.25
%,
03
/10/2023
300‌
305‌
2.40
%,
06
/09/2022
400‌
414‌
3.30
%,
02
/01/2022
250‌
260‌
KeyCorp
5.10
%,
03
/24/2021
488‌
504‌
Morgan
Stanley
2.42
%,
10
/24/2023
1,400‌
1,417‌
3
Month
USD
LIBOR
+
1.40%
4.10
%,
05
/22/2023
300‌
324‌
5.50
%,
07
/24/2020
1,118‌
1,121‌
MUFG
Union
Bank
NA
2.10
%,
12
/09/2022
250‌
258‌
PNC
Bank
NA
1.49
%,
07
/27/2022
400‌
402‌
3
Month
USD
LIBOR
+
0.50%
2.70
%,
11
/01/2022
600‌
628‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
PNC
Financial
Services
Group
Inc/The
3.90
%,
04
/29/2024
$
150‌
$
166‌
Royal
Bank
of
Scotland
Group
PLC
4.27
%,
03
/22/2025
(g)
250‌
272‌
3
Month
USD
LIBOR
+
1.76%
Societe
Generale
SA
2.63
%,
01
/22/2025
(e)
300‌
306‌
State
Street
Corp
2.35
%,
11
/01/2025
(g)
200‌
212‌
United
States
Secured
Overnight
Financing
Rate
+
0.94%
3.10
%,
05
/15/2023
688‌
739‌
Truist
Bank
1.15
%,
08
/02/2022
250‌
251‌
3
Month
USD
LIBOR
+
0.59%
2.45
%,
08
/01/2022
700‌
725‌
2.63
%,
01
/15/2022
600‌
619‌
Truist
Financial
Corp
2.05
%,
05
/10/2021
200‌
203‌
2.90
%,
03
/03/2021
500‌
508‌
UBS
AG/London
1.75
%,
04
/21/2022
(e)
250‌
255‌
UBS
Group
AG
3.49
%,
05
/23/2023
(e)
300‌
314‌
US
Bancorp
3.60
%,
09
/11/2024
350‌
390‌
US
Bank
NA/Cincinnati
OH
1.95
%,
01
/09/2023
250‌
259‌
2.05
%,
10
/23/2020
300‌
301‌
2.65
%,
05
/23/2022
300‌
312‌
Wells
Fargo
&
Co
1.65
%,
06
/02/2024
(g)
400‌
406‌
United
States
Secured
Overnight
Financing
Rate
+
1.60%
1.98
%,
07
/22/2020
100‌
100‌
3
Month
USD
LIBOR
+
0.88%
2.16
%,
02
/11/2026
(g)
200‌
206‌
3
Month
USD
LIBOR
+
0.75%
2.19
%,
04
/30/2026
(g)
400‌
414‌
United
States
Secured
Overnight
Financing
Rate
+
2.00%
3.07
%,
01
/24/2023
1,000‌
1,036‌
$
28,142‌
Beverages
-
0.88%
Anheuser-Busch
InBev
Worldwide
Inc
4.15
%,
01
/23/2025
500‌
567‌
Diageo
Capital
PLC
1.38
%,
09
/29/2025
200‌
204‌
Keurig
Dr
Pepper
Inc
3.55
%,
05
/25/2021
250‌
257‌
PepsiCo
Inc
2.15
%,
10
/14/2020
200‌
201‌
$
1,229‌
Biotechnology
-
0.61%
Amgen
Inc
2.20
%,
02
/21/2027
250‌
264‌
2.65
%,
05
/11/2022
400‌
414‌
Biogen
Inc
3.63
%,
09
/15/2022
159‌
169‌
$
847‌
Building
Materials
-
0.27%
Martin
Marietta
Materials
Inc
4.25
%,
07
/02/2024
349‌
380‌
Chemicals
-
0.90%
Air
Liquide
Finance
SA
1.75
%,
09
/27/2021
(e)
250‌
253‌
Celanese
US
Holdings
LLC
3.50
%,
05
/08/2024
200‌
211‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
86
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Chemicals
(continued)
Chevron
Phillips
Chemical
Co
LLC
/
Chevron
Phillips
Chemical
Co
LP
3.30
%,
05
/01/2023
(e)
$
200‌
$
209‌
DuPont
de
Nemours
Inc
4.21
%,
11
/15/2023
250‌
274‌
International
Flavors
&
Fragrances
Inc
3.40
%,
09
/25/2020
100‌
101‌
Westlake
Chemical
Corp
3.60
%,
07
/15/2022
200‌
207‌
$
1,255‌
Commercial
Mortgage
Backed
Securities
-
1.71%
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
1.02
%,
09
/25/2029
1,400‌
1,406‌
Ginnie
Mae
0.42
%,
09
/16/2055
(
i
),(j)
2,319‌
56‌
0.61
%,
01
/16/2054
(
i
),(j)
2,305‌
54‌
0.63
%,
10
/16/2054
(
i
),(j)
2,843‌
67‌
0.77
%,
02
/16/2055
(
i
),(j)
4,747‌
82‌
0.82
%,
01
/16/2055
(
i
),(j)
4,593‌
136‌
0.90
%,
06
/16/2045
(
i
),(j)
716‌
30‌
1.33
%,
12
/16/2036
(
i
),(j)
544‌
15‌
GS
Mortgage
Securities
Trust
2017-GS6
1.95
%,
05
/10/2050
326‌
327‌
JPMDB
Commercial
Mortgage
Securities
Trust
2016-C4
1.54
%,
12
/15/2049
204‌
204‌
$
2,377‌
Commercial
Services
-
0.29%
PayPal
Holdings
Inc
1.35
%,
06
/01/2023
400‌
408‌
Computers
-
0.72%
Apple
Inc
0.75
%,
05
/11/2023
200‌
202‌
1.13
%,
05
/11/2025
250‌
255‌
Dell
International
LLC
/
EMC
Corp
5.45
%,
06
/15/2023
(e)
200‌
219‌
Hewlett
Packard
Enterprise
Co
4.45
%,
10
/02/2023
300‌
327‌
$
1,003‌
Credit
Card
Asset
Backed
Securities
-
0.59%
BA
Credit
Card
Trust
1.74
%,
01
/15/2025
800‌
823‌
Diversified
Financial
Services
-
1.18%
American
Express
Co
2.75
%,
05
/20/2022
200‌
208‌
3.00
%,
02
/22/2021
550‌
558‌
3.70
%,
11
/05/2021
150‌
156‌
Capital
One
Bank
USA
NA
2.01
%,
01
/27/2023
(g)
250‌
253‌
United
States
Secured
Overnight
Financing
Rate
+
0.62%
Capital
One
Financial
Corp
3.90
%,
01
/29/2024
242‌
263‌
USAA
Capital
Corp
2.63
%,
06
/01/2021
(e)
200‌
204‌
$
1,642‌
Electric
-
5.39%
Alabama
Power
Co
2.45
%,
03
/30/2022
250‌
258‌
Alliant
Energy
Finance
LLC
3.75
%,
06
/15/2023
(e)
400‌
429‌
Black
Hills
Corp
4.25
%,
11
/30/2023
750‌
817‌
CenterPoint
Energy
Inc
3.60
%,
11
/01/2021
300‌
312‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
2.58
%,
07
/01/2020
$
200‌
$
200‌
2.72
%,
08
/15/2021
(j)
200‌
204‌
3.07
%,
08
/15/2024
(j)
200‌
215‌
DTE
Energy
Co
2.25
%,
11
/01/2022
250‌
258‌
2.53
%,
10
/01/2024
300‌
314‌
2.60
%,
06
/15/2022
200‌
206‌
Duke
Energy
Florida
LLC
3.10
%,
08
/15/2021
250‌
255‌
Emera
US
Finance
LP
2.70
%,
06
/15/2021
300‌
305‌
Evergy
Inc
2.45
%,
09
/15/2024
200‌
211‌
Exelon
Corp
3.50
%,
06
/01/2022
500‌
523‌
Indiantown
Cogeneration
LP
9.77
%,
12
/15/2020
28‌
29‌
LG&E
and
KU
Energy
LLC
4.38
%,
10
/01/2021
310‌
321‌
NextEra
Energy
Capital
Holdings
Inc
2.40
%,
09
/01/2021
500‌
511‌
2.90
%,
04
/01/2022
150‌
156‌
3.15
%,
04
/01/2024
150‌
163‌
Public
Service
Enterprise
Group
Inc
2.88
%,
06
/15/2024
100‌
107‌
San
Diego
Gas
&
Electric
Co
1.91
%,
02
/01/2022
58‌
58‌
Sempra
Energy
1.72
%,
01
/15/2021
500‌
500‌
3
Month
USD
LIBOR
+
0.50%
Southern
California
Edison
Co
1.85
%,
02
/01/2022
118‌
118‌
Tucson
Electric
Power
Co
3.05
%,
03
/15/2025
100‌
108‌
Vistra
Operations
Co
LLC
3.70
%,
01
/30/2027
(e)
500‌
515‌
WEC
Energy
Group
Inc
3.38
%,
06
/15/2021
400‌
411‌
$
7,504‌
Electronics
-
0.66%
Fortive
Corp
2.35
%,
06
/15/2021
300‌
304‌
Honeywell
International
Inc
1.85
%,
11
/01/2021
400‌
408‌
2.15
%,
08
/08/2022
200‌
207‌
$
919‌
Environmental
Control
-
0.15%
Republic
Services
Inc
2.50
%,
08
/15/2024
100‌
106‌
Waste
Management
Inc
2.95
%,
06
/15/2024
100‌
103‌
$
209‌
Finance
-
Mortgage
Loan/Banker
-
7.87%
Fannie
Mae
0.50
%,
06
/17/2025
1,000‌
1,000‌
1.75
%,
07
/02/2024
(h)
400‌
422‌
1.88
%,
09
/24/2026
3,700‌
3,983‌
2.00
%,
01
/05/2022
1,000‌
1,028‌
2.13
%,
04
/24/2026
1,200‌
1,308‌
2.50
%,
02
/05/2024
(h)
500‌
539‌
Freddie
Mac
0.25
%,
06
/26/2023
400‌
399‌
1.50
%,
02
/12/2025
1,150‌
1,205‌
2.75
%,
06
/19/2023
1,000‌
1,075‌
$
10,959‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
87
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Food
-
0.63%
Conagra
Brands
Inc
3.80
%,
10
/22/2021
$
500‌
$
520‌
Tyson
Foods
Inc
0.82
%,
08
/21/2020
200‌
200‌
3
Month
USD
LIBOR
+
0.45%
2.25
%,
08
/23/2021
150‌
152‌
$
872‌
Forest
Products
&
Paper
-
0.30%
Georgia-Pacific
LLC
1.75
%,
09
/30/2025
(e)
400‌
413‌
Healthcare
-
Services
-
0.25%
Humana
Inc
2.50
%,
12
/15/2020
100‌
101‌
UnitedHealth
Group
Inc
1.95
%,
10
/15/2020
250‌
251‌
$
352‌
Home
Builders
-
0.15%
DR
Horton
Inc
2.50
%,
10
/15/2024
200‌
209‌
Home
Furnishings
-
0.15%
Panasonic
Corp
2.54
%,
07
/19/2022
(e)
200‌
206‌
Insurance
-
4.19%
Allstate
Corp/The
0.94
%,
03
/29/2023
250‌
249‌
3
Month
USD
LIBOR
+
0.63%
Berkshire
Hathaway
Inc
2.75
%,
03
/15/2023
500‌
530‌
Five
Corners
Funding
Trust
4.42
%,
11
/15/2023
(e)
750‌
836‌
Guardian
Life
Global
Funding
1.10
%,
06
/23/2025
(e)
250‌
251‌
MassMutual
Global
Funding
II
0.85
%,
06
/09/2023
(e)
500‌
502‌
2.00
%,
04
/15/2021
(e)
450‌
456‌
Metropolitan
Life
Global
Funding
I
0.65
%,
09
/07/2020
(e)
250‌
250‌
United
States
Secured
Overnight
Financing
Rate
+
0.57%
0.90
%,
06
/08/2023
(e)
350‌
352‌
1.95
%,
09
/15/2021
(e)
470‌
478‌
New
York
Life
Global
Funding
0.83
%,
06
/10/2022
(e)
1,000‌
1,002‌
3
Month
USD
LIBOR
+
0.52%
2.00
%,
04
/13/2021
(e)
400‌
405‌
2.00
%,
01
/22/2025
(e)
200‌
210‌
Prudential
Financial
Inc
1.50
%,
03
/10/2026
300‌
306‌
$
5,827‌
Internet
-
0.36%
Amazon.com
Inc
1.20
%,
06
/03/2027
500‌
507‌
Iron
&
Steel
-
0.37%
Nucor
Corp
2.00
%,
06
/01/2025
500‌
518‌
Machinery
-
Construction
&
Mining
-
0.23%
Caterpillar
Financial
Services
Corp
2.55
%,
11
/29/2022
300‌
315‌
Machinery
-
Diversified
-
0.29%
John
Deere
Capital
Corp
1.20
%,
04
/06/2023
150‌
153‌
Otis
Worldwide
Corp
2.09
%,
04
/05/2023
(e)
250‌
247‌
3
Month
USD
LIBOR
+
0.45%
$
400‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
-
0.52%
Sky
Ltd
3.13
%,
11
/26/2022
(e)
$
130‌
$
138‌
ViacomCBS
Inc
4.75
%,
05
/15/2025
150‌
171‌
Walt
Disney
Co/The
1.75
%,
01
/13/2026
400‌
412‌
$
721‌
Mining
-
0.32%
Anglo
American
Capital
PLC
5.38
%,
04
/01/2025
(e)
400‌
452‌
Miscellaneous
Manufacturers
-
0.36%
Trane
Technologies
Global
Holding
Co
Ltd
2.90
%,
02
/21/2021
500‌
505‌
Mortgage
Backed
Securities
-
5.36%
Chase
Home
Lending
Mortgage
Trust
2019-1
3.50
%,
03
/25/2050
(e),(j)
175‌
179‌
CHL
Mortgage
Pass-Through
Trust
2003-46
4.02
%,
01
/19/2034
(j)
22‌
21‌
Credit
Suisse
First
Boston
Mortgage
Securities
Corp
5.00
%,
09
/25/2019
1‌
1‌
CSMC
2017-HL1
Trust
3.50
%,
06
/25/2047
(e),(j)
275‌
279‌
CSMC
2017-HL2
Trust
3.50
%,
10
/25/2047
(e),(j)
227‌
232‌
GS
Mortage
-Backed
Securities
Trust
2020-PJ1
3.50
%,
05
/25/2050
(e),(j)
82‌
82‌
GS
Mortgage-Backed
Securities
Corp
Trust
2020-PJ3
3.00
%,
10
/25/2050
(e),(j)
100‌
101‌
JP
Morgan
Mortgage
Trust
2004-A3
3.31
%,
07
/25/2034
(j)
13‌
12‌
JP
Morgan
Mortgage
Trust
2004-S1
5.00
%,
09
/25/2034
19‌
19‌
JP
Morgan
Mortgage
Trust
2016-4
3.50
%,
10
/25/2046
(e),(j)
351‌
355‌
JP
Morgan
Mortgage
Trust
2017-2
3.50
%,
05
/25/2047
(e),(j)
225‌
229‌
JP
Morgan
Mortgage
Trust
2017-4
3.50
%,
11
/25/2048
(e),(j)
173‌
176‌
JP
Morgan
Mortgage
Trust
2017-6
3.50
%,
12
/25/2048
(e),(j)
106‌
108‌
JP
Morgan
Mortgage
Trust
2018-3
3.50
%,
09
/25/2048
(e),(j)
271‌
275‌
JP
Morgan
Mortgage
Trust
2018-4
3.50
%,
10
/25/2048
(e),(j)
150‌
153‌
JP
Morgan
Mortgage
Trust
2018-6
3.50
%,
12
/25/2048
(e),(j)
129‌
130‌
JP
Morgan
Mortgage
Trust
2019-2
4.00
%,
08
/25/2049
(e),(j)
48‌
48‌
JP
Morgan
Mortgage
Trust
2019-5
4.00
%,
11
/25/2049
(e),(j)
146‌
147‌
PHH
Mortgage
Trust
Series
2008-CIM1
2.42
%,
06
/25/2038
78‌
74‌
1.00
x
1
Month
USD
LIBOR
+
2.25%
Prime
Mortgage
Trust
2005-2
5.25
%,
07
/25/2020
25‌
25‌
Provident
Funding
Mortgage
Loan
Trust
2005-1
0.75
%,
05
/25/2035
(k)
51‌
50‌
1.00
x
1
Month
USD
LIBOR
+
0.58%
PSMC
2018-1
Trust
3.50
%,
02
/25/2048
(e),(j)
398‌
403‌
PSMC
2018-2
Trust
3.50
%,
06
/25/2048
(e),(j)
220‌
223‌
PSMC
2018-3
Trust
4.00
%,
08
/25/2048
(e),(j)
142‌
143‌
PSMC
2018-4
Trust
4.00
%,
11
/25/2048
(e),(j)
65‌
65‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
88
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
PSMC
2020-1
Trust
3.50
%,
01
/25/2050
(e),(j)
$
343‌
$
350‌
PSMC
2020-2
Trust
3.00
%,
05
/25/2050
(e),(j),(k)
250‌
255‌
RBSSP
Resecuritization
Trust
2009-7
0.57
%,
06
/26/2037
(e)
5‌
5‌
1.00
x
1
Month
USD
LIBOR
+
0.40%
Sequoia
Mortgage
Trust
2013-4
1.55
%,
04
/25/2043
(j)
28‌
28‌
Sequoia
Mortgage
Trust
2013-8
2.25
%,
06
/25/2043
(j)
115‌
115‌
Sequoia
Mortgage
Trust
2017-1
3.50
%,
02
/25/2047
(e),(j)
273‌
280‌
Sequoia
Mortgage
Trust
2017-2
3.50
%,
02
/25/2047
(e),(j)
140‌
143‌
Sequoia
Mortgage
Trust
2017-3
3.50
%,
04
/25/2047
(e),(j)
205‌
209‌
Sequoia
Mortgage
Trust
2018-3
3.50
%,
03
/25/2048
(e),(j)
151‌
153‌
Sequoia
Mortgage
Trust
2018-5
3.50
%,
05
/25/2048
(e),(j)
197‌
200‌
Sequoia
Mortgage
Trust
2018-6
4.00
%,
07
/25/2048
(e),(j)
51‌
51‌
Sequoia
Mortgage
Trust
2018-7
4.00
%,
09
/25/2048
(e),(j)
44‌
44‌
Sequoia
Mortgage
Trust
2018-8
4.00
%,
11
/25/2048
(e),(j)
160‌
162‌
Sequoia
Mortgage
Trust
2018-CH3
4.00
%,
08
/25/2048
(e),(j)
59‌
60‌
Sequoia
Mortgage
Trust
2019-1
4.00
%,
02
/25/2049
(e),(j)
35‌
35‌
Sequoia
Mortgage
Trust
2020-1
3.50
%,
02
/25/2050
(e),(j)
79‌
81‌
Wells
Fargo
Mortgage
Backed
Securities
2018-1
3.50
%,
07
/25/2047
(e),(j)
232‌
238‌
Wells
Fargo
Mortgage
Backed
Securities
2019-1
Trust
4.00
%,
11
/25/2048
(e),(j)
149‌
150‌
4.00
%,
11
/25/2048
(e),(j)
61‌
61‌
Wells
Fargo
Mortgage
Backed
Securities
2019-3
Trust
3.00
%,
07
/25/2049
(e),(j)
258‌
261‌
Wells
Fargo
Mortgage
Backed
Securities
2019-4
Trust
3.50
%,
09
/25/2049
(e),(j)
190‌
194‌
Wells
Fargo
Mortgage
Backed
Securities
2020-1
Trust
3.00
%,
12
/25/2049
(e),(j)
437‌
445‌
Wells
Fargo
Mortgage
Backed
Securities
2020-2
Trust
3.00
%,
12
/25/2049
(e),(j)
400‌
409‌
$
7,459‌
Oil
&
Gas
-
1.48%
BP
Capital
Markets
America
Inc
2.94
%,
04
/06/2023
250‌
264‌
Cimarex
Energy
Co
4.38
%,
06
/01/2024
250‌
264‌
Exxon
Mobil
Corp
1.57
%,
04
/15/2023
150‌
154‌
2.99
%,
03
/19/2025
200‌
217‌
Marathon
Petroleum
Corp
4.50
%,
05
/01/2023
200‌
216‌
Phillips
66
0.96
%,
02
/26/2021
50‌
50‌
3
Month
USD
LIBOR
+
0.60%
3.70
%,
04
/06/2023
150‌
160‌
Shell
International
Finance
BV
2.38
%,
08
/21/2022
300‌
313‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Suncor
Energy
Inc
2.80
%,
05
/15/2023
$
300‌
$
313‌
3.10
%,
05
/15/2025
100‌
107‌
$
2,058‌
Oil
&
Gas
Services
-
0.19%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77
%,
12
/15/2022
250‌
260‌
Other
Asset
Backed
Securities
-
5.79%
CCG
Receivables
Trust
2.80
%,
09
/14/2026
(e)
394‌
401‌
CCG
Receivables
Trust
2018-1
2.50
%,
06
/16/2025
(e)
21‌
21‌
CCG
Receivables
Trust
2018-2
3.09
%,
12
/15/2025
(e)
219‌
222‌
CCG
Receivables
Trust
2019-2
2.11
%,
03
/15/2027
(e)
400‌
404‌
Daimler
Trucks
Retail
Trust
2019-1
2.77
%,
04
/15/2021
(e)
113‌
113‌
Drug
Royalty
III
LP
1
3.72
%,
04
/15/2027
(e)
85‌
85‌
1.00
x
3
Month
USD
LIBOR
+
2.50%
3.98
%,
04
/15/2027
(e)
8‌
8‌
4.27
%,
10
/15/2031
(e)
175‌
180‌
MMAF
Equipment
Finance
LLC
2018-A
2.92
%,
07
/12/2021
(e)
28‌
28‌
MMAF
Equipment
Finance
LLC
2019-A
2.84
%,
01
/10/2022
(e)
239‌
240‌
MMAF
Equipment
Finance
LLC
2020-A
0.74
%,
04
/09/2024
(e)
500‌
501‌
MVW
Owner
Trust
2015-1
2.52
%,
12
/20/2032
(e)
142‌
141‌
MVW
Owner
Trust
2016-1
2.25
%,
12
/20/2033
(e)
122‌
120‌
MVW
Owner
Trust
2018-1
3.45
%,
01
/21/2036
(e)
269‌
275‌
PFS
Financing
Corp
2.23
%,
10
/15/2024
(e)
750‌
740‌
2.40
%,
10
/17/2022
(e)
300‌
301‌
2.86
%,
04
/15/2024
(e)
250‌
257‌
3.19
%,
04
/17/2023
(e)
250‌
254‌
Verizon
Owner
Trust
2017-2
1.92
%,
12
/20/2021
(e)
40‌
40‌
Verizon
Owner
Trust
2017-3
2.06
%,
04
/20/2022
(e)
84‌
84‌
Verizon
Owner
Trust
2018-1
2.82
%,
09
/20/2022
(e)
351‌
354‌
Verizon
Owner
Trust
2018-A
3.23
%,
04
/20/2023
600‌
613‌
Verizon
Owner
Trust
2019-A
2.93
%,
09
/20/2023
500‌
515‌
Verizon
Owner
Trust
2019-B
2.33
%,
12
/20/2023
500‌
513‌
Verizon
Owner
Trust
2019-C
1.94
%,
04
/22/2024
500‌
513‌
Verizon
Owner
Trust
2020-A
1.85
%,
07
/22/2024
300‌
308‌
Volvo
Financial
Equipment
LLC
Series
2018-1
2.76
%,
10
/17/2022
(e)
100‌
101‌
Volvo
Financial
Equipment
LLC
Series
2019-1
3.00
%,
03
/15/2023
(e)
300‌
306‌
Volvo
Financial
Equipment
LLC
Series
2019-2
2.02
%,
08
/15/2022
(e)
250‌
252‌
VSE
2018-A
VOI
Mortgage
LLC
3.56
%,
02
/20/2036
(e)
160‌
164‌
$
8,054‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
89
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
-
2.69%
AbbVie
Inc
2.15
%,
11
/19/2021
(e)
$
500‌
$
510‌
2.30
%,
05
/14/2021
200‌
204‌
Bayer
US
Finance
II
LLC
3.88
%,
12
/15/2023
(e)
200‌
219‌
Bristol-Myers
Squibb
Co
2.90
%,
07
/26/2024
(e)
150‌
162‌
3.25
%,
08
/15/2022
(e)
250‌
264‌
3.63
%,
05
/15/2024
(e)
350‌
385‌
Cigna
Corp
3.40
%,
09
/17/2021
389‌
402‌
CVS
Health
Corp
2.63
%,
08
/15/2024
250‌
267‌
3.35
%,
03
/09/2021
300‌
306‌
Mead
Johnson
Nutrition
Co
3.00
%,
11
/15/2020
250‌
252‌
Merck
&
Co
Inc
0.75
%,
02
/24/2026
200‌
200‌
Novartis
Capital
Corp
1.75
%,
02
/14/2025
300‌
314‌
Pfizer
Inc
2.80
%,
03
/11/2022
250‌
260‌
$
3,745‌
Pipelines
-
2.03%
Buckeye
Partners
LP
4.15
%,
07
/01/2023
400‌
389‌
Enterprise
Products
Operating
LLC
3.50
%,
02
/01/2022
500‌
521‌
Florida
Gas
Transmission
Co
LLC
3.88
%,
07
/15/2022
(e)
250‌
261‌
Kinder
Morgan
Inc
2.50
%,
01
/15/2023
500‌
500‌
3
Month
USD
LIBOR
+
1.28%
ONEOK
Partners
LP
5.00
%,
09
/15/2023
325‌
351‌
Southeast
Supply
Header
LLC
4.25
%,
06
/15/2024
(e)
200‌
199‌
TransCanada
PipeLines
Ltd
2.60
%,
05
/15/2067
900‌
609‌
3
Month
USD
LIBOR
+
2.21%
$
2,830‌
REITs
-
1.87%
Alexandria
Real
Estate
Equities
Inc
3.90
%,
06
/15/2023
250‌
271‌
American
Tower
Corp
2.40
%,
03
/15/2025
200‌
211‌
American
Tower
Trust
#1
3.07
%,
03
/15/2048
(e)
225‌
230‌
Crown
Castle
International
Corp
1.35
%,
07
/15/2025
250‌
252‌
CubeSmart
LP
4.38
%,
12
/15/2023
92‌
100‌
Healthcare
Realty
Trust
Inc
3.75
%,
04
/15/2023
365‌
380‌
Omega
Healthcare
Investors
Inc
4.95
%,
04
/01/2024
250‌
263‌
SBA
Tower
Trust
2.88
%,
07
/15/2046
(e)
150‌
150‌
3.17
%,
04
/09/2047
(e)
400‌
404‌
Ventas
Realty
LP
3.50
%,
04
/15/2024
198‌
206‌
Welltower
Inc
3.75
%,
03
/15/2023
134‌
142‌
$
2,609‌
Retail
-
0.47%
McDonald's
Corp
2.75
%,
12
/09/2020
500‌
504‌
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Walmart
Inc
1.90
%,
12
/15/2020
$
150‌
$
151‌
$
655‌
Savings
&
Loans
-
0.00%
Washington
Mutual
Bank
/
Henderson
NV
0.00
%,
01
/15/2013
(d)
200‌
—‌
Semiconductors
-
1.14%
Broadcom
Inc
2.25
%,
11
/15/2023
(e)
150‌
155‌
4.70
%,
04
/15/2025
(e)
200‌
225‌
Microchip
Technology
Inc
4.33
%,
06
/01/2023
200‌
216‌
Micron
Technology
Inc
2.50
%,
04
/24/2023
300‌
312‌
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70
%,
05
/01/2025
(e)
200‌
210‌
3.15
%,
05
/01/2027
(e)
200‌
212‌
QUALCOMM
Inc
2.60
%,
01
/30/2023
250‌
262‌
$
1,592‌
Software
-
0.51%
Intuit
Inc
0.65
%,
07
/15/2023
200‌
200‌
Oracle
Corp
1.90
%,
09
/15/2021
200‌
204‌
VMware
Inc
2.95
%,
08
/21/2022
300‌
310‌
$
714‌
Student
Loan
Asset
Backed
Securities
-
4.20%
Commonbond
Student
Loan
Trust
2018-BGS
3.56
%,
09
/25/2045
(e)
215‌
223‌
Commonbond
Student
Loan
Trust
2018-C-GS
3.87
%,
02
/25/2046
(e)
284‌
295‌
Commonbond
Student
Loan
Trust
2019-A-GS
2.54
%,
01
/25/2047
(e)
420‌
436‌
Commonbond
Student
Loan
Trust
2020-A-GS
1.98
%,
08
/25/2050
(e)
200‌
202‌
Keycorp
Student
Loan
Trust
2000-b
1.30
%,
07
/25/2029
260‌
257‌
1.00
x
3
Month
USD
LIBOR
+
0.31%
KeyCorp
Student
Loan
Trust
2003-A
1.52
%,
01
/25/2037
649‌
643‌
1.00
x
3
Month
USD
LIBOR
+
0.53%
Laurel
Road
Prime
Student
Loan
Trust
2019-A
2.34
%,
10
/25/2048
(e)
52‌
52‌
Navient
Private
Education
Refi
Loan
Trust
2018-C
3.01
%,
06
/16/2042
(e)
18‌
18‌
Navient
Private
Education
Refi
Loan
Trust
2018-D
0.48
%,
12
/15/2059
(e)
36‌
36‌
1.00
x
1
Month
USD
LIBOR
+
0.30%
Navient
Private
Education
Refi
Loan
Trust
2019-A
3.03
%,
01
/15/2043
(e)
9‌
9‌
3.42
%,
01
/15/2043
(e)
100‌
102‌
Navient
Private
Education
Refi
Loan
Trust
2019-C
2.82
%,
02
/15/2068
(e)
174‌
175‌
Navient
Private
Education
Refi
Loan
Trust
2019-D
0.58
%,
12
/15/2059
(e)
71‌
71‌
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Refi
Loan
Trust
2019-E
2.39
%,
05
/15/2068
(e)
120‌
121‌
Navient
Private
Education
Refi
Loan
Trust
2019-F
2.18
%,
08
/15/2068
(e)
137‌
138‌
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
90
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
(continued)
Navient
Private
Education
Refi
Loan
Trust
2019-G
2.40
%,
10
/15/2068
(e)
$
352‌
$
359‌
Navient
Private
Education
Refi
Loan
Trust
2020-A
0.53
%,
11
/15/2068
(e)
142‌
142‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Private
Education
Refi
Loan
Trust
2020-B
1.80
%,
01
/15/2069
(e)
258‌
258‌
Navient
Private
Education
Refi
Loan
Trust
2020-D
1.69
%,
05
/15/2069
(e)
450‌
452‌
Navient
Student
Loan
Trust
2018-EA
3.43
%,
12
/15/2059
(e)
155‌
156‌
Navient
Student
Loan
Trust
2019-B
0.58
%,
12
/15/2059
(e)
78‌
78‌
1.00
x
1
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-A
0.71
%,
06
/15/2033
98‌
95‌
1.00
x
3
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-B
0.64
%,
03
/15/2024
260‌
256‌
1.00
x
3
Month
USD
LIBOR
+
0.33%
SLM
Private
Credit
Student
Loan
Trust
2006-A
0.60
%,
06
/15/2039
636‌
590‌
1.00
x
3
Month
USD
LIBOR
+
0.29%
SLM
Private
Credit
Student
Loan
Trust
2006-B
0.51
%,
12
/15/2039
252‌
240‌
1.00
x
3
Month
USD
LIBOR
+
0.20%
SMB
Private
Education
Loan
Trust
2019-A
0.53
%,
02
/16/2026
(e)
49‌
49‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2019-B
0.53
%,
07
/15/2026
(e)
95‌
95‌
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2020-A
0.48
%,
03
/15/2027
(e)
300‌
298‌
1.00
x
1
Month
USD
LIBOR
+
0.30%
$
5,846‌
Telecommunications
-
2.30%
AT&T
Inc
1.10
%,
06
/01/2021
300‌
301‌
3
Month
USD
LIBOR
+
0.75%
1.31
%,
02
/15/2023
250‌
249‌
3
Month
USD
LIBOR
+
0.89%
2.30
%,
06
/01/2027
300‌
311‌
3.60
%,
02
/17/2023
200‌
215‌
Cisco
Systems
Inc
2.20
%,
02
/28/2021
250‌
253‌
Crown
Castle
Towers
LLC
3.22
%,
05
/15/2022
(e)
322‌
327‌
Sprint
Spectrum
Co
LLC
/
Sprint
Spectrum
Co
II
LLC
/
Sprint
Spectrum
Co
III
LLC
3.36
%,
03
/20/2023
(e)
234‌
237‌
4.74
%,
03
/20/2025
(e)
950‌
1,031‌
Vodafone
Group
PLC
3.75
%,
01
/16/2024
250‌
273‌
$
3,197‌
Transportation
-
0.30%
Ryder
System
Inc
2.25
%,
09
/01/2021
200‌
203‌
3.75
%,
06
/09/2023
200‌
213‌
$
416‌
Trucking
&
Leasing
-
0.15%
Penske
Truck
Leasing
Co
Lp
/
PTL
Finance
Corp
3.45
%,
07
/01/2024
(e)
200‌
212‌
TOTAL
BONDS
$
120,948‌
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
9.68%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
0.01%
3.84
%,
09
/01/2035
$
10‌
$
10‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.25%
Federal
National
Mortgage
Association
(FNMA)
-
0.06%
2.97
%,
04
/01/2033
19‌
19‌
1.00
x
6
Month
USD
LIBOR
+
1.51%
3.61
%,
08
/01/2034
6‌
6‌
1.00
x
12
Month
USD
LIBOR
+
1.63%
3.64
%,
12
/01/2032
4‌
4‌
1.00
x
12
Month
USD
LIBOR
+
1.64%
3.75
%,
01
/01/2035
6‌
6‌
1.00
x
12
Month
USD
LIBOR
+
1.75%
3.79
%,
02
/01/2037
16‌
17‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.13%
3.95
%,
02
/01/2035
3‌
3‌
1.00
x
6
Month
USD
LIBOR
+
2.07%
4.04
%,
11
/01/2032
2‌
2‌
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.29%
4.12
%,
12
/01/2033
11‌
11‌
1.00
x
6
Month
USD
LIBOR
+
2.25%
4.28
%,
07
/01/2034
9‌
9‌
1.00
x
12
Month
USD
LIBOR
+
1.64%
8.00
%,
05
/01/2027
4‌
4‌
$
81‌
U.S.
Treasury
-
6.67%
1.50
%,
11
/30/2021
1,900‌
1,936‌
1.50
%,
10
/31/2024
250‌
264‌
1.63
%,
06
/30/2021
2,000‌
2,029‌
1.63
%,
08
/31/2022
1,700‌
1,753‌
1.75
%,
07
/31/2021
3,250‌
3,305‌
$
9,287‌
U.S.
Treasury
Bill
-
2.94%
0.13
%,
09
/10/2020
(l)
1,000‌
1,000‌
0.13
%,
10
/15/2020
(l)
500‌
500‌
0.13
%,
11
/05/2020
(l)
600‌
599‌
0.14
%,
08
/27/2020
(l)
500‌
500‌
0.14
%,
11
/19/2020
(l)
500‌
500‌
0.15
%,
01
/28/2021
(l)
500‌
499‌
0.16
%,
10
/01/2020
(l)
500‌
500‌
$
4,098‌
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
13,476‌
Total
Investments
$
138,183‌
Other
Assets
and
Liabilities
-  0.74
%
1,025‌
TOTAL
NET
ASSETS
-
100.00%
$
139,208‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,594
or
1.15%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$39,207
or
28.16%
of
net
assets.
(f)
Security
purchased
on
a
when-issued
basis.
(g)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(h)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(
i
)
Security
is
an
Interest
Only
Strip.
Schedule
of
Investments
Short-Term
Income
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
91
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions.  These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$305
or
0.22%
of
net
assets.
(l)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary  (
unaudited)
Sector
Percent
Financial
27.46‌%
Asset
Backed
Securities
17.73‌%
Government
17.48‌%
Mortgage
Securities
7.14‌%
Consumer,
Non-cyclical
5.50‌%
Utilities
5.39‌%
Energy
3.70‌%
Communications
3.18‌%
Industrial
2.98‌%
Money
Market
Funds
2.70‌%
Technology
2.37‌%
Basic
Materials
1.89‌%
Consumer,
Cyclical
1.74‌%
Other
Assets
and
Liabilities
0.74‌%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
4,444‌
$
44,323‌
$
46,602‌
$
2,165‌
$
4,444‌
$
44,323‌
$
46,602‌
$
2,165‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
12‌
$
—‌
$
—‌
$
—‌
$
12‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
SmallCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
92
INVESTMENT
COMPANIES
-
4.47%
Shares
Held
Value
(000's)
Money
Market
Funds
-
4.47%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.09%
(a),(b)
2,274,513‌
$
2,274‌
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c),(d)
5,059,021‌
5,059‌
$
7,333‌
TOTAL
INVESTMENT
COMPANIES
$
7,333‌
COMMON
STOCKS
-
100.05%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0.92%
Aerojet
Rocketdyne
Holdings
Inc
(d)
38,000‌
$
1,506‌
Agriculture
-
1.53%
Darling
Ingredients
Inc
(d)
102,000‌
2,511‌
Automobile
Parts
&
Equipment
-
0.76%
Modine
Manufacturing
Co
(d)
54,300‌
300‌
Visteon
Corp
(d)
13,900‌
952‌
$
1,252‌
Banks
-
6.25%
BancFirst
Corp
10,300‌
418‌
Cathay
General
Bancorp
47,000‌
1,236‌
First
Foundation
Inc
30,100‌
492‌
First
Interstate
BancSystem
Inc
38,900‌
1,204‌
First
Merchants
Corp
33,500‌
924‌
First
Midwest
Bancorp
Inc
/IL
70,700‌
944‌
Flagstar
Bancorp
Inc
35,000‌
1,030‌
IBERIABANK
Corp
21,500‌
979‌
Independent
Bank
Corp/MI
23,500‌
349‌
Lakeland
Bancorp
Inc
24,800‌
283‌
United
Community
Banks
Inc
/GA
79,120‌
1,592‌
WesBanco
Inc
39,200‌
796‌
$
10,247‌
Biotechnology
-
6.40%
Acceleron
Pharma
Inc
(d)
14,500‌
1,382‌
ADC
Therapeutics
SA
(d),(e)
9,600‌
449‌
Allogene
Therapeutics
Inc
(d),(e)
15,700‌
672‌
Bellicum
Pharmaceuticals
Inc
(d),(e)
10,400‌
77‌
Bluebird
Bio
Inc
(d)
8,400‌
513‌
Denali
Therapeutics
Inc
(d)
36,400‌
880‌
FibroGen
Inc
(d)
24,200‌
981‌
Immunomedics
Inc
(d)
19,100‌
677‌
Insmed
Inc
(d)
53,400‌
1,471‌
Iovance
Biotherapeutics
Inc
(d)
31,800‌
873‌
MacroGenics
Inc
(d)
32,500‌
907‌
Magenta
Therapeutics
Inc
(d)
47,400‌
356‌
Seattle
Genetics
Inc
(d)
7,400‌
1,257‌
$
10,495‌
Building
Materials
-
1.28%
Builders
FirstSource
Inc
(d)
71,300‌
1,476‌
JELD-WEN
Holding
Inc
(d)
38,300‌
617‌
$
2,093‌
Chemicals
-
1.09%
Cabot
Corp
36,260‌
1,344‌
Koppers
Holdings
Inc
(d)
15,400‌
290‌
Kraton
Corp
(d)
9,215‌
159‌
$
1,793‌
Commercial
Services
-
6.38%
AMN
Healthcare
Services
Inc
(d)
35,500‌
1,606‌
BrightView
Holdings
Inc
(d)
69,900‌
783‌
Brink's
Co/The
25,000‌
1,138‌
FTI
Consulting
Inc
(d)
6,800‌
779‌
HMS
Holdings
Corp
(d)
72,400‌
2,345‌
ICF
International
Inc
16,900‌
1,095‌
K12
Inc
(d)
51,100‌
1,392‌
Medifast
Inc
(e)
7,400‌
1,027‌
Nesco
Holdings
Inc
(d),(e)
75,600‌
304‌
$
10,469‌
Computers
-
5.20%
CACI
International
Inc
(d)
7,500‌
1,626‌
ExlService
Holdings
Inc
(d)
21,100‌
1,338‌
Parsons
Corp
(d)
54,200‌
1,964‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
(continued)
Perspecta
Inc
91,300‌
$
2,121‌
Ping
Identity
Holding
Corp
(d)
45,900‌
1,473‌
$
8,522‌
Consumer
Products
-
0.90%
Central
Garden
&
Pet
Co
-
A
Shares
(d)
43,720‌
1,477‌
Diversified
Financial
Services
-
4.14%
Federated
Hermes
Inc
29,700‌
704‌
Hamilton
Lane
Inc
21,946‌
1,479‌
LPL
Financial
Holdings
Inc
11,900‌
933‌
Piper
Sandler
Cos
20,150‌
1,192‌
PJT
Partners
Inc
7,859‌
403‌
Stifel
Financial
Corp
43,995‌
2,087‌
$
6,798‌
Electric
-
2.24%
PNM
Resources
Inc
47,580‌
1,829‌
Portland
General
Electric
Co
44,200‌
1,848‌
$
3,677‌
Electrical
Components
&
Equipment
-
1.54%
EnerSys
32,600‌
2,099‌
nLight
Inc
(d)
19,190‌
427‌
$
2,526‌
Electronics
-
4.10%
Advanced
Energy
Industries
Inc
(d)
29,600‌
2,006‌
Atkore
International
Group
Inc
(d)
48,000‌
1,313‌
SYNNEX
Corp
17,300‌
2,072‌
Vishay
Intertechnology
Inc
87,600‌
1,338‌
$
6,729‌
Engineering
&
Construction
-
2.23%
Great
Lakes
Dredge
&
Dock
Corp
(d)
108,000‌
1,000‌
MasTec
Inc
(d)
52,500‌
2,356‌
Tutor
Perini
Corp
(d)
24,798‌
302‌
$
3,658‌
Entertainment
-
2.43%
Eldorado
Resorts
Inc
(d),(e)
56,600‌
2,267‌
Golden
Entertainment
Inc
(d)
50,400‌
450‌
Vail
Resorts
Inc
7,000‌
1,275‌
$
3,992‌
Environmental
Control
-
0.96%
Tetra
Tech
Inc
19,900‌
1,574‌
Food
-
0.79%
Performance
Food
Group
Co
(d)
44,618‌
1,300‌
Forest
Products
&
Paper
-
0.26%
P
H
Glatfelter
Co
26,200‌
420‌
Gas
-
1.14%
Southwest
Gas
Holdings
Inc
27,150‌
1,875‌
Healthcare
-
Products
-
4.02%
Adaptive
Biotechnologies
Corp
(d)
13,600‌
658‌
Castle
Biosciences
Inc
(d)
3,127‌
118‌
Natera
Inc
(d)
47,277‌
2,357‌
Nevro
Corp
(d)
12,600‌
1,505‌
Precision
BioSciences
Inc
(d)
69,000‌
575‌
RA
Medical
Systems
Inc
(d)
62,600‌
31‌
STAAR
Surgical
Co
(d)
21,800‌
1,342‌
$
6,586‌
Healthcare
-
Services
-
4.58%
Addus
HomeCare
Corp
(d)
22,900‌
2,120‌
Encompass
Health
Corp
27,100‌
1,678‌
Syneos
Health
Inc
(d)
36,100‌
2,103‌
Teladoc
Health
Inc
(d)
8,400‌
1,603‌
$
7,504‌
Holding
Companies
-
Diversified
-
1.17%
GS
Acquisition
Holdings
Corp
II
(d)
182,300‌
1,916‌
Home
Builders
-
1.26%
Taylor
Morrison
Home
Corp
(d)
107,000‌
2,064‌
Home
Furnishings
-
0.61%
Purple
Innovation
Inc
(d)
55,334‌
996‌
Schedule
of
Investments
SmallCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
93
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
3.69%
Essent
Group
Ltd
35,600‌
$
1,291‌
First
American
Financial
Corp
18,100‌
869‌
Hanover
Insurance
Group
Inc
/The
18,300‌
1,854‌
Kemper
Corp
21,980‌
1,594‌
NMI
Holdings
Inc
(d)
27,600‌
444‌
$
6,052‌
Internet
-
0.61%
Eventbrite
Inc
(d)
77,300‌
663‌
Revolve
Group
Inc
(d),(e)
23,098‌
343‌
$
1,006‌
Iron
&
Steel
-
0.71%
Cleveland-Cliffs
Inc
(e)
212,000‌
1,170‌
Leisure
Products
&
Services
-
1.10%
Lindblad
Expeditions
Holdings
Inc
(d)
36,800‌
284‌
Planet
Fitness
Inc
(d)
25,200‌
1,526‌
$
1,810‌
Lodging
-
0.93%
Extended
Stay
America
Inc
136,700‌
1,530‌
Machinery
-
Diversified
-
0.58%
Columbus
McKinnon
Corp/NY
28,300‌
947‌
Media
-
0.63%
World
Wrestling
Entertainment
Inc
23,700‌
1,030‌
Metal
Fabrication
&
Hardware
-
1.85%
Advanced
Drainage
Systems
Inc
22,858‌
1,129‌
Rexnord
Corp
65,400‌
1,907‌
$
3,036‌
Mining
-
0.25%
Alcoa
Corp
(d)
36,420‌
409‌
Miscellaneous
Manufacturers
-
1.40%
Hillenbrand
Inc
75,600‌
2,046‌
Trinseo
SA
11,100‌
246‌
$
2,292‌
Oil
&
Gas
-
1.06%
Delek
US
Holdings
Inc
24,300‌
423‌
Parsley
Energy
Inc
42,000‌
449‌
PDC
Energy
Inc
(d)
16,400‌
204‌
Talos
Energy
Inc
(d)
24,500‌
225‌
WPX
Energy
Inc
(d)
69,800‌
445‌
$
1,746‌
Oil
&
Gas
Services
-
0.69%
ChampionX
Corp
(d)
39,100‌
382‌
Matrix
Service
Co
(d)
23,200‌
225‌
Select
Energy
Services
Inc
(d)
106,700‌
523‌
$
1,130‌
Packaging
&
Containers
-
0.86%
Graphic
Packaging
Holding
Co
100,400‌
1,405‌
Pharmaceuticals
-
2.91%
DexCom
Inc
(d)
2,700‌
1,095‌
Horizon
Therapeutics
Plc
(d)
35,500‌
1,973‌
Revance
Therapeutics
Inc
(d)
69,700‌
1,702‌
$
4,770‌
REITs
-
7.48%
Agree
Realty
Corp
32,400‌
2,129‌
Brandywine
Realty
Trust
152,700‌
1,663‌
Cousins
Properties
Inc
61,901‌
1,847‌
First
Industrial
Realty
Trust
Inc
53,900‌
2,072‌
Ladder
Capital
Corp
107,100‌
868‌
Pebblebrook
Hotel
Trust
110,420‌
1,508‌
Rexford
Industrial
Realty
Inc
42,900‌
1,777‌
Two
Harbors
Investment
Corp
78,640‌
396‌
$
12,260‌
Retail
-
4.39%
BJ's
Wholesale
Club
Holdings
Inc
(d)
67,600‌
2,520‌
Bloomin
'
Brands
Inc
29,400‌
313‌
Brinker
International
Inc
19,100‌
458‌
Caleres
Inc
120,000‌
1,001‌
Carvana
Co
(d)
14,100‌
1,695‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Children's
Place
Inc
/The
(e)
7,100‌
$
266‌
Ruth's
Hospitality
Group
Inc
48,760‌
398‌
World
Fuel
Services
Corp
21,200‌
546‌
$
7,197‌
Savings
&
Loans
-
0.56%
Sterling
Bancorp/DE
78,400‌
919‌
Semiconductors
-
2.25%
Entegris
Inc
32,400‌
1,913‌
SiTime
Corp
(d)
37,300‌
1,769‌
$
3,682‌
Software
-
5.68%
Aspen
Technology
Inc
(d)
15,600‌
1,616‌
Ceridian
HCM
Holding
Inc
(d)
7,681‌
609‌
Cloudflare
Inc
(d)
32,900‌
1,183‌
Dynatrace
Inc
(d)
20,700‌
840‌
Manhattan
Associates
Inc
(d)
21,400‌
2,016‌
SolarWinds
Corp
(d),(e)
99,288‌
1,754‌
Sprout
Social
Inc
(d),(e)
48,100‌
1,299‌
$
9,317‌
Telecommunications
-
0.24%
Switch
Inc
22,200‌
396‌
TOTAL
COMMON
STOCKS
$
164,084‌
Total
Investments
$
171,417‌
Other
Assets
and
Liabilities
-  (4.52)%
(7,407‌)
TOTAL
NET
ASSETS
-
100.00%
$
164,010‌
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$5,634
or
3.44%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.0%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary  (unaudited)
Sector
Percent
Consumer,
Non-cyclical
27.51‌%
Financial
22.12‌%
Industrial
15.72‌%
Technology
13.13‌%
Consumer,
Cyclical
11.48‌%
Money
Market
Funds
4.47‌%
Utilities
3.38‌%
Basic
Materials
2.31‌%
Energy
1.75‌%
Communications
1.48‌%
Diversified
1.17‌%
Other
Assets
and
Liabilities
(4.52‌)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SmallCap
Account
June
30,
2020
(unaudited)
See
accompanying
notes.
94
Affiliated
Securities
December
31,
2019
Purchases
Sales
June
30,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
10,018‌
$
88,224‌
$
93,183‌
$
5,059‌
$
10,018‌
$
88,224‌
$
93,183‌
$
5,059‌
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
9‌
$
—‌
$
—‌
$
—‌
$
9‌
$
—‌
$
—‌
$
—‌
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Glossary
to
the
Schedule
of
Investments
June
30,
2020
(unaudited)
See
accompanying
notes.
95
Currency
Abbreviations
USD/$
United
States
Dollar
See
accompanying
notes.
96
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)
(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
CORE
PLUS
BOND
ACCOUNT
Class
1
shares
2020(c)
$
11
.50‌
$
0
.15‌
$
0
.54‌
$
0
.69‌
$
–‌
$
–‌
$
–‌
2019
10
.81‌
0
.34‌
0
.72‌
1
.06‌
(
0
.37‌
)
–‌
(
0
.37‌
)
2018
11
.35‌
0
.36‌
(
0
.52‌
)
(
0
.16‌
)
(
0
.38‌
)
–‌
(
0
.38‌
)
2017
11
.15‌
0
.35‌
0
.18‌
0
.53‌
(
0
.33‌
)
–‌
(
0
.33‌
)
2016
11
.05‌
0
.32‌
0
.14‌
0
.46‌
(
0
.36‌
)
–‌
(
0
.36‌
)
2015
11
.46‌
0
.32‌
(
0
.37‌
)
(
0
.05‌
)
(
0
.36‌
)
–‌
(
0
.36‌
)
DIVERSIFIED
INTERNATIONAL
ACCOUNT
Class
1
shares
2020(c)
15
.71‌
0
.11‌
(
1
.54‌
)
(
1
.43‌
)
–‌
–‌
–‌
2019
13
.72‌
0
.28‌
2
.75‌
3
.03‌
(
0
.26‌
)
(
0
.78‌
)
(
1
.04‌
)
2018
17
.01‌
0
.31‌
(
3
.25‌
)
(
2
.94‌
)
(
0
.35‌
)
–‌
(
0
.35‌
)
2017
13
.42‌
0
.21‌
3
.67‌
3
.88‌
(
0
.29‌
)
–‌
(
0
.29‌
)
2016
13
.68‌
0
.24‌
(
0
.18‌
)
0
.06‌
(
0
.32‌
)
–‌
(
0
.32‌
)
2015
14
.08‌
0
.26‌
(
0
.29‌
)
(
0
.03‌
)
(
0
.37‌
)
–‌
(
0
.37‌
)
See
accompanying
notes.
97
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Net
Asset
Value,
End
of
Period
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
$
12
.19‌
6
.00‌
%
(d)
$
260,649‌
0
.47‌
%
(e)
2
.64‌
%
(e)
196
.0‌
%
(e)
11
.50‌
9
.81‌
252,874‌
0
.47‌
2
.99‌
152
.4‌
10
.81‌
(
1
.41‌
)
280,760‌
0
.47‌
3
.27‌
127
.5‌
11
.35‌
4
.81‌
293,662‌
0
.46‌
3
.08‌
123
.5‌
11
.15‌
4
.09‌
292,436‌
0
.46‌
2
.79‌
155
.1‌
11
.05‌
(
0
.48‌
)
290,032‌
0
.46‌
2
.80‌
177
.2‌
14
.28‌
(
9
.10‌
)
(d)
232,224‌
0
.92‌
(e)
1
.64‌
(e)
50
.0‌
(e)
15
.71‌
22
.69‌
266,768‌
0
.93‌
1
.86‌
43
.7‌
13
.72‌
(
17
.54‌
)
233,612‌
0
.91‌
1
.91‌
59
.3‌
17
.01‌
29
.06‌
292,975‌
0
.91‌
1
.37‌
42
.8‌
13
.42‌
0
.36‌
243,997‌
0
.91‌
1
.77‌
56
.8‌
13
.68‌
(
0
.35‌
)
273,300‌
0
.88‌
1
.80‌
48
.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,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
See
accompanying
notes.
98
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
EQUITY
INCOME
ACCOUNT
Class
1
shares
2020(c)
$
28
.19‌
$
0
.30‌
(
$
4
.44‌
)
(
$
4
.14‌
)
$
–‌
$
–‌
$
–‌
$
24
.05‌
2019
22
.86‌
0
.56‌
6
.00‌
6
.56‌
(
0
.51‌
)
(
0
.72‌
)
(
1
.23‌
)
28
.19‌
2018
26
.08‌
0
.64‌
(
1
.72‌
)
(
1
.08‌
)
(
0
.52‌
)
(
1
.62‌
)
(
2
.14‌
)
22
.86‌
2017
23
.20‌
0
.56‌
4
.14‌
4
.70‌
(
0
.58‌
)
(
1
.24‌
)
(
1
.82‌
)
26
.08‌
2016
21
.67‌
0
.57‌
2
.77‌
3
.34‌
(
0
.64‌
)
(
1
.17‌
)
(
1
.81‌
)
23
.20‌
2015
23
.12‌
0
.58‌
(
1
.46‌
)
(
0
.88‌
)
(
0
.57‌
)
–‌
(
0
.57‌
)
21
.67‌
Class
2
shares
2020(c)
27
.93‌
0
.27‌
(
4
.40‌
)
(
4
.13‌
)
–‌
–‌
–‌
23
.80‌
2019
22
.66‌
0
.49‌
5
.95‌
6
.44‌
(
0
.45‌
)
(
0
.72‌
)
(
1
.17‌
)
27
.93‌
2018
25
.87‌
0
.57‌
(
1
.70‌
)
(
1
.13‌
)
(
0
.46‌
)
(
1
.62‌
)
(
2
.08‌
)
22
.66‌
2017
23
.03‌
0
.49‌
4
.11‌
4
.60‌
(
0
.52‌
)
(
1
.24‌
)
(
1
.76‌
)
25
.87‌
2016
21
.52‌
0
.51‌
2
.75‌
3
.26‌
(
0
.58‌
)
(
1
.17‌
)
(
1
.75‌
)
23
.03‌
2015
22
.96‌
0
.52‌
(
1
.45‌
)
(
0
.93‌
)
(
0
.51‌
)
–‌
(
0
.51‌
)
21
.52‌
GOVERNMENT
&
HIGH
QUALITY
BOND
ACCOUNT
Class
1
shares
2020(c)
9
.81‌
0
.06‌
0
.18‌
0
.24‌
–‌
–‌
–‌
10
.05‌
2019
9
.47‌
0
.22‌
0
.39‌
0
.61‌
(
0
.27‌
)
–‌
(
0
.27‌
)
9
.81‌
2018
9
.76‌
0
.23‌
(
0
.15‌
)
0
.08‌
(
0
.37‌
)
–‌
(
0
.37‌
)
9
.47‌
2017
9
.98‌
0
.31‌
(
0
.12‌
)
0
.19‌
(
0
.41‌
)
–‌
(
0
.41‌
)
9
.76‌
2016
10
.16‌
0
.33‌
(
0
.14‌
)
0
.19‌
(
0
.37‌
)
–‌
(
0
.37‌
)
9
.98‌
2015
10
.44‌
0
.27‌
(
0
.19‌
)
0
.08‌
(
0
.35‌
)
(
0
.01‌
)
(
0
.36‌
)
10
.16‌
See
accompanying
notes.
99
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
14
.69‌
)
%
(d)
$
626,137‌
0
.48‌
%
(e)
2
.48‌
%
(e)
25
.3‌
%
(e)
29
.09‌
741,311‌
0
.47‌
2
.16‌
17
.9‌
(
5
.01‌
)
636,177‌
0
.49‌
2
.47‌
13
.2‌
21
.08‌
572,629‌
0
.50‌
2
.26‌
15
.9‌
15
.72‌
525,829‌
0
.50‌
2
.54‌
17
.1‌
(
3
.93‌
)
513,126‌
0
.49‌
2
.54‌
10
.7‌
(
14
.79‌
)
(d)
25,671‌
0
.73‌
(e)
2
.23‌
(e)
25
.3‌
(e)
28
.78‌
31,874‌
0
.72‌
1
.91‌
17
.9‌
(
5
.24‌
)
25,207‌
0
.74‌
2
.23‌
13
.2‌
20
.77‌
27,469‌
0
.75‌
2
.00‌
15
.9‌
15
.43‌
24,197‌
0
.75‌
2
.29‌
17
.1‌
(
4
.15‌
)
23,215‌
0
.74‌
2
.29‌
10
.7‌
2
.45‌
(d)
241,728‌
0
.51‌
(e)
1
.30‌
(e)
52
.3‌
(e)
6
.45‌
241,332‌
0
.51‌
2
.26‌
22
.5‌
0
.91‌
219,612‌
0
.51‌
2
.43‌
17
.4‌
1
.88‌
241,839‌
0
.51‌
3
.09‌
24
.3‌
1
.80‌
247,620‌
0
.51‌
3
.25‌
25
.8‌
0
.79‌
286,659‌
0
.51‌
2
.61‌
21
.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,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
See
accompanying
notes.
100
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
LARGECAP
GROWTH
ACCOUNT
I
Class
1
shares
2020(c)
$
37.64‌
(
$
0.02‌)
$
3.99‌
$
3.97‌
$
–‌
$
–‌
$
–‌
$
41.61‌
2019
30.10‌
0.01‌
10.27‌
10.28‌
(
0.02‌)
(
2.72‌)
(
2.74‌)
37.64‌
2018
31.18‌
0.03‌
1.41‌
1.44‌
(
0.01‌)
(
2.51‌)
(
2
.52‌)
30.10‌
2017
24.55‌
0.01‌
8.13‌
8.14‌
(
0.01‌)
(
1.50‌)
(
1.51‌)
31.18‌
2016
26.33‌
0.01‌
0.34‌
0.35‌
–‌
(
2.13‌)
(
2.13‌)
24.55‌
2015
28.70‌
0.02‌
2.26‌
2.28‌
(
0.07‌)
(
4.58‌)
(
4.65‌)
26.33‌
MIDCAP
ACCOUNT
Class
1
shares
2020(c)
59.93‌
0.07‌
(
2.99‌)
(
2.92‌)
–‌
–‌
–‌
57.01‌
2019
48.53‌
0.43‌
19.93‌
20.36‌
(
0.17‌)
(
8.79‌)
(
8.96‌)
59.93‌
2018
59.42‌
0.17‌
(
2.93‌)
(
2.76‌)
(
0.17‌)
(
7.96‌)
(
8.13‌)
48.53‌
2017
50.96‌
0.19‌
12.48‌
12.67‌
(
0.32‌)
(
3.89‌)
(
4.21‌)
59.42‌
2016
55.24‌
0.33‌
5.30‌
5.63‌
(
0.24‌)
(
9.67‌)
(
9.91‌)
50.96‌
2015
60.79‌
0.22‌
1.19‌
1.41‌
(
0.32‌)
(
6.64‌)
(
6.96‌)
55.24‌
Class
2
shares
2020(c)
59.42‌
–‌
(
2.97‌)
(
2.97‌)
–‌
–‌
–‌
56.45‌
2019
48.19‌
0.28‌
19.77‌
20.05‌
(
0.03‌)
(
8.79‌)
(
8.82‌)
59.42‌
2018
59.05‌
0.02‌
(
2.89‌)
(
2.87‌)
(
0.03‌)
(
7.96‌)
(
7.99‌)
48.19‌
2017
50.69‌
0.05‌
12.39‌
12.44‌
(
0.19‌)
(
3.89‌)
(
4
.08‌)
59.05‌
2016
54.97‌
0.20‌
5.27‌
5.47‌
(
0.08‌)
(
9.67‌)
(
9.75‌)
50.69‌
2015
60.54‌
0.07‌
1.17‌
1.24‌
(
0.17‌)
(
6.64‌)
(
6.81‌)
54.97‌
See
accompanying
notes.
101
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
10.55‌
%
(d)
$
543,253‌
0.69‌
%
(e),(f)
(0.10‌)
%
(e)
45.5‌
%
(e)
34.92‌
502,653‌
0.71‌
(f)
0.03‌
30.4‌
3.60‌
296,139‌
0.74‌
(f)
0.08‌
36.9‌
33.71‌
302,147‌
0.75‌
(f)
0.03‌
36.2‌
1.26‌
244,058‌
0.76‌
(f)
0.04‌
36.8‌
7.77‌
252,386‌
0.76‌
(f)
0.07‌
38.6‌
(4.89)
(d),(g)
521,494‌
0.55‌
(e)
0.25‌
(e)
19.1‌
(e)
43.10‌
(g)
587,854‌
0.55‌
0.72‌
10.5‌
(6.55‌)
474,365‌
0.54‌
0.29‌
24.6‌
25.51‌
575,104‌
0.54‌
0
.34‌
13.4‌
10.37‌
576,634‌
0.54‌
0.62‌
13.6‌
1.64‌
617,437‌
0.53‌
0.37‌
26.3‌
(5.00‌)
(d)
18,947‌
0.80‌
(e)
0.00‌
(e)
19.1‌
(e)
42.72‌
(g)
20,808‌
0.80‌
0.48‌
10.5‌
(6.79‌)
(g)
15,710‌
0.79‌
0.04‌
24.6‌
25.19‌
(g)
17,792‌
0.79‌
0.09‌
13.4‌
10.11‌
14,985‌
0.79‌
0.38‌
13.6‌
1.37‌
15,243‌
0.78‌
0.12‌
26.3‌
(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,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
(f)
Reflects
Manager's
contractual
expense
limit.
(g)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
See
accompanying
notes.
102
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
CAPITAL
APPRECIATION
ACCOUNT
Class
1
shares
2020(c)
$
30
.72‌
$
0
.17‌
(
$
1
.23‌
)
(
$
1
.06‌
)
$
–‌
$
–‌
$
–‌
$
29
.66‌
2019
25
.86‌
0
.38‌
7
.77‌
8
.15‌
(
0
.50‌
)
(
2
.79‌
)
(
3
.29‌
)
30
.72‌
2018
28
.54‌
0
.44‌
(
1
.19‌
)
(
0
.75‌
)
(
0
.34‌
)
(
1
.59‌
)
(
1
.93‌
)
25
.86‌
2017
23
.94‌
0
.28‌
4
.66‌
4
.94‌
(
0
.34‌
)
–‌
(
0
.34‌
)
28
.54‌
2016
22
.35‌
0
.30‌
1
.73‌
2
.03‌
(
0
.26‌
)
(
0
.18‌
)
(
0
.44‌
)
23
.94‌
2015
22
.31‌
0
.30‌
0
.20‌
0
.50‌
(
0
.06‌
)
(
0
.40‌
)
(
0
.46‌
)
22
.35‌
Class
2
shares
2020(c)
30
.32‌
0
.13‌
(
1
.21‌
)
(
1
.08‌
)
–‌
–‌
–‌
29
.24‌
2019
25
.58‌
0
.30‌
7
.67‌
7
.97‌
(
0
.44‌
)
(
2
.79‌
)
(
3
.23‌
)
30
.32‌
2018
28
.25‌
0
.37‌
(
1
.17‌
)
(
0
.80‌
)
(
0
.28‌
)
(
1
.59‌
)
(
1
.87‌
)
25
.58‌
2017
23
.71‌
0
.22‌
4
.60‌
4
.82‌
(
0
.28‌
)
–‌
(
0
.28‌
)
28
.25‌
2016
22
.14‌
0
.24‌
1
.72‌
1
.96‌
(
0
.21‌
)
(
0
.18‌
)
(
0
.39‌
)
23
.71‌
2015
22
.11‌
0
.23‌
0
.21‌
0
.44‌
(
0
.01‌
)
(
0
.40‌
)
(
0
.41‌
)
22
.14‌
REAL
ESTATE
SECURITIES
ACCOUNT
Class
1
shares
2020(c)
21
.50‌
0
.17‌
(
3
.14‌
)
(
2
.97‌
)
–‌
–‌
–‌
18
.53‌
2019
17
.86‌
0
.34‌
5
.18‌
5
.52‌
(
0
.40‌
)
(
1
.48‌
)
(
1
.88‌
)
21
.50‌
2018
20
.62‌
0
.37‌
(
1
.09‌
)
(
0
.72‌
)
(
0
.37‌
)
(
1
.67‌
)
(
2
.04‌
)
17
.86‌
2017
21
.30‌
0
.25‌
1
.62‌
1
.87‌
(
0
.39‌
)
(
2
.16‌
)
(
2
.55‌
)
20
.62‌
2016
22
.20‌
0
.31‌
1
.09‌
1
.40‌
(
0
.32‌
)
(
1
.98‌
)
(
2
.30‌
)
21
.30‌
2015
22
.33‌
0
.34‌
0
.57‌
0
.91‌
(
0
.34‌
)
(
0
.70‌
)
(
1
.04‌
)
22
.20‌
Class
2
shares
2020(c)
21
.56‌
0
.15‌
(
3
.15‌
)
(
3
.00‌
)
–‌
–‌
–‌
18
.56‌
2019
17
.92‌
0
.30‌
5
.18‌
5
.48‌
(
0
.36‌
)
(
1
.48‌
)
(
1
.84‌
)
21
.56‌
2018
20
.70‌
0
.34‌
(
1
.12‌
)
(
0
.78‌
)
(
0
.33‌
)
(
1
.67‌
)
(
2
.00‌
)
17
.92‌
2017
21
.36‌
0
.19‌
1
.64‌
1
.83‌
(
0
.33‌
)
(
2
.16‌
)
(
2
.49‌
)
20
.70‌
2016
22
.29‌
0
.28‌
1
.06‌
1
.34‌
(
0
.29‌
)
(
1
.98‌
)
(
2
.27‌
)
21
.36‌
2015
22
.45‌
0
.34‌
0
.53‌
0
.87‌
(
0
.33‌
)
(
0
.70‌
)
(
1
.03‌
)
22
.29‌
See
accompanying
notes.
103
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
3
.45‌
)
%
(d)
$
129,880‌
0
.64‌
%
(e)
1
.17‌
%
(e)
50
.0‌
%
(e)
32
.49‌
143,227‌
0
.64‌
1
.27‌
29
.5‌
(
3
.41‌
)
128,547‌
0
.63‌
1
.52‌
44
.9‌
20
.75‌
154,472‌
0
.63‌
1
.07‌
28
.5‌
9
.11‌
147,193‌
0
.63‌
1
.31‌
33
.7‌
2
.18‌
154,732‌
0
.64‌
1
.33‌
22
.1‌
(f)
(
3
.56‌
)
(d)
13,129‌
0
.89‌
(e)
0
.93‌
(e)
50
.0‌
(e)
32
.10‌
13,536‌
0
.89‌
1
.03‌
29
.5‌
(
3
.64‌
)
(g)
8,757‌
0
.88‌
1
.28‌
44
.9‌
20
.46‌
(g)
8,526‌
0
.88‌
0
.83‌
28
.5‌
8
.85‌
7,420‌
0
.88‌
1
.06‌
33
.7‌
1
.94‌
7,517‌
0
.89‌
1
.05‌
22
.1‌
(f)
(
13
.81‌
)
(d)
125,019‌
0
.83‌
(e)
1
.75‌
(e)
44
.2‌
(e)
31
.26‌
155,569‌
0
.88‌
(h)
1
.62‌
19
.3‌
(
4
.21‌
)
133,429‌
0
.89‌
1
.89‌
17
.3‌
9
.19‌
154,615‌
0
.89‌
1
.19‌
19
.6‌
5
.85‌
158,760‌
0
.89‌
1
.38‌
31
.3‌
4
.21‌
159,292‌
0
.89‌
1
.54‌
22
.8‌
(
13
.91‌
)
(d)
6,090‌
1
.08‌
(e)
1
.58‌
(e)
44
.2‌
(e)
30
.94‌
6,361‌
1
.13‌
(h)
1
.43‌
19
.3‌
(
4
.47‌
)
3,493‌
1
.14‌
1
.73‌
17
.3‌
8
.94‌
2,830‌
1
.14‌
0
.89‌
19
.6‌
5
.53‌
4,215‌
1
.14‌
1
.26‌
31
.3‌
4
.00‌
1,994‌
1
.14‌
1
.56‌
22
.8‌
(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,
2020.
(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)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
(h)
Reflects
Manager's
contractual
expense
limit.
See
accompanying
notes.
104
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
BALANCED
PORTFOLIO
Class
1
shares
2020(c)
$
15
.67‌
$
0
.05‌
(
$
0
.70‌
)
(
$
0
.65‌
)
$
–‌
$
–‌
$
–‌
$
15
.02‌
2019
13
.90‌
0
.31‌
2
.43‌
2
.74‌
(
0
.40‌
)
(
0
.57‌
)
(
0
.97‌
)
15
.67‌
2018
15
.89‌
0
.36‌
(
1
.07‌
)
(
0
.71‌
)
(
0
.50‌
)
(
0
.78‌
)
(
1
.28‌
)
13
.90‌
2017
14
.44‌
0
.45‌
1
.71‌
2
.16‌
(
0
.34‌
)
(
0
.37‌
)
(
0
.71‌
)
15
.89‌
2016
14
.69‌
0
.30‌
0
.70‌
1
.00‌
(
0
.32‌
)
(
0
.93‌
)
(
1
.25‌
)
14
.44‌
2015
16
.51‌
0
.30‌
(
0
.38‌
)
(
0
.08‌
)
(
0
.49‌
)
(
1
.25‌
)
(
1
.74‌
)
14
.69‌
Class
2
shares
2020(c)
15
.48‌
0
.04‌
(
0
.71‌
)
(
0
.67‌
)
–‌
–‌
–‌
14
.81‌
2019
13
.74‌
0
.28‌
2
.39‌
2
.67‌
(
0
.36‌
)
(
0
.57‌
)
(
0
.93‌
)
15
.48‌
2018
15
.72‌
0
.32‌
(
1
.06‌
)
(
0
.74‌
)
(
0
.46‌
)
(
0
.78‌
)
(
1
.24‌
)
13
.74‌
2017
14
.30‌
0
.42‌
1
.67‌
2
.09‌
(
0
.30‌
)
(
0
.37‌
)
(
0
.67‌
)
15
.72‌
2016
14
.55‌
0
.27‌
0
.69‌
0
.96‌
(
0
.28‌
)
(
0
.93‌
)
(
1
.21‌
)
14
.30‌
2015
16
.37‌
0
.26‌
(
0
.38‌
)
(
0
.12‌
)
(
0
.45‌
)
(
1
.25‌
)
(
1
.70‌
)
14
.55‌
SAM
CONSERVATIVE
BALANCED
PORTFOLIO
Class
1
shares
2020(c)
12
.19‌
0
.07‌
(
0
.35‌
)
(
0
.28‌
)
–‌
–‌
–‌
11
.91‌
2019
11
.05‌
0
.28‌
1
.45‌
1
.73‌
(
0
.35‌
)
(
0
.24‌
)
(
0
.59‌
)
12
.19‌
2018
12
.33‌
0
.34‌
(
0
.73‌
)
(
0
.39‌
)
(
0
.42‌
)
(
0
.47‌
)
(
0
.89‌
)
11
.05‌
2017
11
.50‌
0
.38‌
0
.92‌
1
.30‌
(
0
.34‌
)
(
0
.13‌
)
(
0
.47‌
)
12
.33‌
2016
11
.52‌
0
.31‌
0
.42‌
0
.73‌
(
0
.30‌
)
(
0
.45‌
)
(
0
.75‌
)
11
.50‌
2015
12
.60‌
0
.29‌
(
0
.36‌
)
(
0
.07‌
)
(
0
.41‌
)
(
0
.60‌
)
(
1
.01‌
)
11
.52‌
Class
2
shares
2020(c)
12
.03‌
0
.06‌
(
0
.36‌
)
(
0
.30‌
)
–‌
–‌
–‌
11
.73‌
2019
10
.91‌
0
.25‌
1
.43‌
1
.68‌
(
0
.32‌
)
(
0
.24‌
)
(
0
.56‌
)
12
.03‌
2018
12
.19‌
0
.31‌
(
0
.73‌
)
(
0
.42‌
)
(
0
.39‌
)
(
0
.47‌
)
(
0
.86‌
)
10
.91‌
2017
11
.38‌
0
.36‌
0
.89‌
1
.25‌
(
0
.31‌
)
(
0
.13‌
)
(
0
.44‌
)
12
.19‌
2016
11
.41‌
0
.27‌
0
.42‌
0
.69‌
(
0
.27‌
)
(
0
.45‌
)
(
0
.72‌
)
11
.38‌
2015
12
.48‌
0
.27‌
(
0
.36‌
)
(
0
.09‌
)
(
0
.38‌
)
(
0
.60‌
)
(
0
.98‌
)
11
.41‌
See
accompanying
notes.
105
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
4
.15‌
)
%
(d)
$
516,836‌
0
.24‌
%
(e)
,(f)
0
.74‌
%
(e)
1
.8‌
%
(e)
20
.01‌
574,960‌
0
.24‌
(f)
,(g)
2
.06‌
23
.0‌
(
5
.04‌
)
561,162‌
0
.23‌
(f)
,(g)
2
.29‌
18
.2‌
15
.21‌
678,409‌
0
.23‌
(f)
2
.92‌
27
.4‌
6
.82‌
672,562‌
0
.23‌
(f)
2
.07‌
16
.5‌
(
0
.81‌
)
732,937‌
0
.23‌
(f)
1
.88‌
26
.1‌
(
4
.33‌
)
(d)
116,823‌
0
.49‌
(e)
,(f)
0
.49‌
(e)
1
.8‌
(e)
19
.74‌
123,870‌
0
.49‌
(f)
,(g)
1
.89‌
23
.0‌
(
5
.25‌
)
104,051‌
0
.48‌
(f)
,(g)
2
.10‌
18
.2‌
14
.88‌
110,129‌
0
.48‌
(f)
2
.77‌
27
.4‌
6
.62‌
97,047‌
0
.48‌
(f)
1
.88‌
16
.5‌
(
1
.08‌
)
96,511‌
0
.48‌
(f)
1
.66‌
26
.1‌
(
2
.30‌
)
(d)
150,889‌
0
.24‌
(e)
,(f)
1
.21‌
(e)
7
.6‌
(e)
15
.88‌
164,095‌
0
.24‌
(f)
,(g)
2
.32‌
30
.8‌
(
3
.49‌
)
154,297‌
0
.22‌
(f)
,(g)
2
.79‌
19
.5‌
11
.46‌
178,523‌
0
.23‌
(f)
3
.16‌
26
.3‌
6
.37‌
183,830‌
0
.23‌
(f)
2
.64‌
19
.8‌
(
0
.78‌
)
193,585‌
0
.23‌
(f)
2
.38‌
28
.2‌
(
2
.49‌
)
(d)
25,933‌
0
.49‌
(e)
,(f)
0
.97‌
(e)
7
.6‌
(e)
15
.66‌
25,380‌
0
.49‌
(f)
,(g)
2
.15‌
30
.8‌
(
3
.75‌
)
20,449‌
0
.47‌
(f)
,(g)
2
.59‌
19
.5‌
11
.14‌
20,541‌
0
.48‌
(f)
3
.06‌
26
.3‌
6
.08‌
17,477‌
0
.48‌
(f)
2
.39‌
19
.8‌
(
0
.93‌
)
17,774‌
0
.48‌
(f)
2
.19‌
28
.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,
2020.
(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.
See
accompanying
notes.
106
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
CONSERVATIVE
GROWTH
PORTFOLIO
Class
1
shares
2020(c)
$
19
.94‌
$
0
.03‌
(
$
1
.23‌
)
(
$
1
.20‌
)
$
–‌
$
–‌
$
–‌
$
18
.74‌
2019
17
.16‌
0
.36‌
3
.68‌
4
.04‌
(
0
.36‌
)
(
0
.90‌
)
(
1
.26‌
)
19
.94‌
2018
19
.86‌
0
.35‌
(
1
.51‌
)
(
1
.16‌
)
(
0
.56‌
)
(
0
.98‌
)
(
1
.54‌
)
17
.16‌
2017
17
.22‌
0
.54‌
2
.82‌
3
.36‌
(
0
.30‌
)
(
0
.42‌
)
(
0
.72‌
)
19
.86‌
2016
17
.22‌
0
.30‌
0
.90‌
1
.20‌
(
0
.26‌
)
(
0
.94‌
)
(
1
.20‌
)
17
.22‌
2015
19
.02‌
0
.26‌
(
0
.41‌
)
(
0
.15‌
)
(
0
.43‌
)
(
1
.22‌
)
(
1
.65‌
)
17
.22‌
Class
2
shares
2020(c)
19
.63‌
0
.01‌
(
1
.21‌
)
(
1
.20‌
)
–‌
–‌
–‌
18
.43‌
2019
16
.92‌
0
.32‌
3
.61‌
3
.93‌
(
0
.32‌
)
(
0
.90‌
)
(
1
.22‌
)
19
.63‌
2018
19
.60‌
0
.31‌
(
1
.50‌
)
(
1
.19‌
)
(
0
.51‌
)
(
0
.98‌
)
(
1
.49‌
)
16
.92‌
2017
17
.01‌
0
.49‌
2
.78‌
3
.27‌
(
0
.26‌
)
(
0
.42‌
)
(
0
.68‌
)
19
.60‌
2016
17
.02‌
0
.25‌
0
.89‌
1
.14‌
(
0
.21‌
)
(
0
.94‌
)
(
1
.15‌
)
17
.01‌
2015
18
.82‌
0
.21‌
(
0
.40‌
)
(
0
.19‌
)
(
0
.39‌
)
(
1
.22‌
)
(
1
.61‌
)
17
.02‌
SAM
FLEXIBLE
INCOME
PORTFOLIO
Class
1
shares
2020(c)
12
.58‌
0
.10‌
(
0
.29‌
)
(
0
.19‌
)
–‌
–‌
–‌
12
.39‌
2019
11
.86‌
0
.33‌
1
.22‌
1
.55‌
(
0
.46‌
)
(
0
.37‌
)
(
0
.83‌
)
12
.58‌
2018
12
.95‌
0
.40‌
(
0
.63‌
)
(
0
.23‌
)
(
0
.53‌
)
(
0
.33‌
)
(
0
.86‌
)
11
.86‌
2017
12
.45‌
0
.47‌
0
.56‌
1
.03‌
(
0
.44‌
)
(
0
.09‌
)
(
0
.53‌
)
12
.95‌
2016
12
.27‌
0
.42‌
0
.44‌
0
.86‌
(
0
.43‌
)
(
0
.25‌
)
(
0
.68‌
)
12
.45‌
2015
13
.22‌
0
.40‌
(
0
.56‌
)
(
0
.16‌
)
(
0
.47‌
)
(
0
.32‌
)
(
0
.79‌
)
12
.27‌
Class
2
shares
2020(c)
12
.44‌
0
.09‌
(
0
.29‌
)
(
0
.20‌
)
–‌
–‌
–‌
12
.24‌
2019
11
.74‌
0
.31‌
1
.19‌
1
.50‌
(
0
.43‌
)
(
0
.37‌
)
(
0
.80‌
)
12
.44‌
2018
12
.83‌
0
.38‌
(
0
.63‌
)
(
0
.25‌
)
(
0
.51‌
)
(
0
.33‌
)
(
0
.84‌
)
11
.74‌
2017
12
.34‌
0
.45‌
0
.54‌
0
.99‌
(
0
.41‌
)
(
0
.09‌
)
(
0
.50‌
)
12
.83‌
2016
12
.17‌
0
.38‌
0
.44‌
0
.82‌
(
0
.40‌
)
(
0
.25‌
)
(
0
.65‌
)
12
.34‌
2015
13
.12‌
0
.37‌
(
0
.56‌
)
(
0
.19‌
)
(
0
.44‌
)
(
0
.32‌
)
(
0
.76‌
)
12
.17‌
See
accompanying
notes.
107
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
6
.02‌
)
%
(d)
$
195,683‌
0
.24‌
%
(e)
,(f)
0
.33‌
%
(e)
4
.2‌
%
(e)
24
.06‌
213,346‌
0
.24‌
(f)
,(g)
1
.89‌
16
.2‌
(
6
.62‌
)
189,654‌
0
.23‌
(f)
,(g)
1
.81‌
27
.0‌
19
.78‌
220,054‌
0
.23‌
(f)
2
.88‌
35
.1‌
7
.00‌
194,284‌
0
.23‌
(f)
1
.73‌
25
.5‌
(
1
.09‌
)
193,966‌
0
.23‌
(f)
1
.40‌
29
.1‌
(
6
.11‌
)
(d)
132,774‌
0
.49‌
(e)
,(f)
0
.08‌
(e)
4
.2‌
(e)
23
.68‌
143,501‌
0
.49‌
(f)
,(g)
1
.68‌
16
.2‌
(
6
.82‌
)
118,307‌
0
.48‌
(f)
,(g)
1
.60‌
27
.0‌
19
.46‌
127,079‌
0
.48‌
(f)
2
.68‌
35
.1‌
6
.76‌
108,247‌
0
.48‌
(f)
1
.49‌
25
.5‌
(
1
.34‌
)
103,771‌
0
.48‌
(f)
1
.17‌
29
.1‌
(
1
.51‌
)
(d)
142,266‌
0
.24‌
(e)
,(f)
1
.71‌
(e)
8
.4‌
(e)
13
.25‌
157,922‌
0
.24‌
(f)
2
.65‌
37
.4‌
(
1
.97‌
)
157,019‌
0
.23‌
(f)
3
.19‌
19
.9‌
8
.41‌
194,742‌
0
.23‌
(f)
3
.69‌
29
.3‌
7
.04‌
196,393‌
0
.23‌
(f)
3
.32‌
17
.1‌
(
1
.31‌
)
200,828‌
0
.23‌
(f)
3
.05‌
25
.2‌
(
1
.61‌
)
(d)
31,536‌
0
.49‌
(e)
,(f)
1
.46‌
(e)
8
.4‌
(e)
12
.97‌
30,663‌
0
.49‌
(f)
2
.46‌
37
.4‌
(
2
.20‌
)
25,656‌
0
.48‌
(f)
3
.07‌
19
.9‌
8
.13‌
23,003‌
0
.48‌
(f)
3
.57‌
29
.3‌
6
.73‌
20,085‌
0
.48‌
(f)
3
.06‌
17
.1‌
(
1
.55‌
)
21,108‌
0
.48‌
(f)
2
.85‌
25
.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,
2020.
(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.
See
accompanying
notes.
108
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
STRATEGIC
GROWTH
PORTFOLIO
Class
1
shares
2020(c)
$
21
.85‌
(
$
0
.01‌
)
(
$
1
.54‌
)
(
$
1
.55‌
)
$
–‌
$
–‌
$
–‌
$
20
.30‌
2019
18
.36‌
0
.39‌
4
.54‌
4
.93‌
(
0
.33‌
)
(
1
.11‌
)
(
1
.44‌
)
21
.85‌
2018
21
.72‌
0
.33‌
(
2
.01‌
)
(
1
.68‌
)
(
0
.52‌
)
(
1
.16‌
)
(
1
.68‌
)
18
.36‌
2017
18
.54‌
0
.51‌
3
.54‌
4
.05‌
(
0
.30‌
)
(
0
.57‌
)
(
0
.87‌
)
21
.72‌
2016
18
.70‌
0
.30‌
0
.85‌
1
.15‌
(
0
.28‌
)
(
1
.03‌
)
(
1
.31‌
)
18
.54‌
2015
21
.00‌
0
.29‌
(
0
.56‌
)
(
0
.27‌
)
(
0
.47‌
)
(
1
.56‌
)
(
2
.03‌
)
18
.70‌
Class
2
shares
2020(c)
21
.53‌
(
0
.03‌
)
(
1
.52‌
)
(
1
.55‌
)
–‌
–‌
–‌
19
.98‌
2019
18
.11‌
0
.34‌
4
.47‌
4
.81‌
(
0
.28‌
)
(
1
.11‌
)
(
1
.39‌
)
21
.53‌
2018
21
.46‌
0
.28‌
(
2
.00‌
)
(
1
.72‌
)
(
0
.47‌
)
(
1
.16‌
)
(
1
.63‌
)
18
.11‌
2017
18
.33‌
0
.47‌
3
.48‌
3
.95‌
(
0
.25‌
)
(
0
.57‌
)
(
0
.82‌
)
21
.46‌
2016
18
.50‌
0
.26‌
0
.83‌
1
.09‌
(
0
.23‌
)
(
1
.03‌
)
(
1
.26‌
)
18
.33‌
2015
20
.80‌
0
.24‌
(
0
.55‌
)
(
0
.31‌
)
(
0
.43‌
)
(
1
.56‌
)
(
1
.99‌
)
18
.50‌
SHORT-TERM
INCOME
ACCOUNT
Class
1
shares
2020(c)
2
.57‌
0
.03‌
0
.03‌
0
.06‌
–‌
–‌
–‌
2
.63‌
2019
2
.52‌
0
.06‌
0
.06‌
0
.12‌
(
0
.07‌
)
–‌
(
0
.07‌
)
2
.57‌
2018
2
.55‌
0
.06‌
(
0
.03‌
)
0
.03‌
(
0
.06‌
)
–‌
(
0
.06‌
)
2
.52‌
2017
2
.54‌
0
.05‌
0
.01‌
0
.06‌
(
0
.05‌
)
–‌
(
0
.05‌
)
2
.55‌
2016
2
.54‌
0
.05‌
–‌
0
.05‌
(
0
.05‌
)
–‌
(
0
.05‌
)
2
.54‌
2015
2
.59‌
0
.04‌
(
0
.02‌
)
0
.02‌
(
0
.07‌
)
–‌
(
0
.07‌
)
2
.54‌
See
accompanying
notes.
109
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(
7
.09‌
)
%
(d)
$
154,388‌
0
.24‌
%
(e)
,(f)
(
0
.07‌
)
%
(e)
5
.9‌
%
(e)
27
.44‌
169,489‌
0
.24‌
(f)
,(g)
1
.89‌
20
.3‌
(
8
.60‌
)
140,247‌
0
.23‌
(f)
,(g)
1
.56‌
37
.8‌
22
.22‌
163,861‌
0
.23‌
(f)
2
.50‌
37
.7‌
6
.15‌
145,083‌
0
.23‌
(f)
1
.61‌
23
.4‌
(
1
.62‌
)
142,227‌
0
.23‌
(f)
1
.45‌
37
.9‌
(
7
.20‌
)
(d)
134,546‌
0
.49‌
(e)
,(f)
(
0
.32‌
)
(e)
5
.9‌
(e)
27
.13‌
145,924‌
0
.49‌
(f)
,(g)
1
.67‌
20
.3‌
(
8
.87‌
)
114,902‌
0
.48‌
(f)
,(g)
1
.34‌
37
.8‌
21
.95‌
126,632‌
0
.48‌
(f)
2
.33‌
37
.7‌
5
.90‌
103,870‌
0
.48‌
(f)
1
.41‌
23
.4‌
(
1
.87‌
)
95,775‌
0
.48‌
(f)
1
.19‌
37
.9‌
2
.33‌
(d)
139,208‌
0
.51‌
(e)
,(g)
1
.95‌
(e)
76
.5‌
(e)
4
.70‌
130,852‌
0
.51‌
(g)
2
.31‌
54
.2‌
1
.02‌
149,075‌
0
.50‌
(g)
2
.19‌
49
.9‌
2
.39‌
158,446‌
0
.50‌
(g)
2
.01‌
67
.3‌
2
.14‌
170,538‌
0
.50‌
(g)
1
.91‌
48
.6‌
0
.71‌
160,833‌
0
.49‌
(g)
1
.63‌
57
.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,
2020.
(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.
See
accompanying
notes.
110
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
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SMALLCAP
ACCOUNT
Class
1
shares
2020(c)
$
15.33‌
$
0.04‌
(
$
1.67‌)
(
$
1.63‌)
$
–‌
$
–‌
$
–‌
$
13.70‌
2019
14.30‌
0.08‌
3.67‌
3.75‌
(
0.06‌)
(
2.66‌)
(
2.72‌)
15.33‌
2018
17.10‌
0.03‌
(
1.62‌)
(
1.59‌)
(
0.06‌)
(
1.15‌)
(
1.21‌)
14.30‌
2017
15.21‌
0.06‌
1.89‌
1.95‌
(
0.06‌)
–‌
(
0.06‌)
17.10‌
2016
13.55‌
0.15‌
2.15‌
2.30‌
(
0.04‌)
(
0.60‌)
(
0.64‌)
15.21‌
2015
13.99‌
0.05‌
(
0.03‌)
0.02‌
(
0.01‌)
(
0.45‌)
(
0.46‌)
13.55‌
Class
2
shares
2020(c)
15.26‌
0.02‌
(
1.65‌)
(
1.63‌)
–‌
–‌
–‌
13.63‌
2019
14.24‌
0.04‌
3.66‌
3.70‌
(
0.02‌)
(
2.66‌)
(
2.68‌)
15.26‌
2018
17.04‌
(
0.01‌)
(
1.62‌)
(
1.63‌)
(
0.02‌)
(
1.15‌)
(
1.17‌)
14.24‌
2017
15.17‌
0.02‌
1.87‌
1.89‌
(
0.02‌)
–‌
(
0.02‌)
17.04‌
2016
13.52‌
0.11‌
2.15‌
2.26‌
(
0.01‌)
(
0.60‌)
(
0.61‌)
15.17‌
2015(g)
14.49‌
0.02‌
(
0.53‌)
(
0.51‌)
(
0.01‌)
(
0.45‌)
(
0.46‌)
13.52‌
See
accompanying
notes.
111
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
(10.63‌)
%
(d)
$
157,935‌
0.84‌
%
(e)
0.54‌
%
(e)
34.4‌
%
(e)
27.40‌
184,434‌
0.84‌
0.53‌
34.7‌
(
10.89‌)
163,243‌
0.83‌
0.20‌
45.0‌
12.87‌
208,669‌
0.83‌
0.37‌
64.1‌
17.39‌
209,911‌
0.83‌
1.08‌
57.1‌
(0.10‌)
205,344‌
0.83‌
0.33‌
63.3‌
(10.75)
(d),(f)
6,075‌
1.09‌
(e)
0.30‌
(e)
34.4‌
(e)
27.12‌
6,829‌
1.09‌
0.28‌
34.7‌
(11.17‌)
(f)
4,874‌
1.08‌
(0.05‌)
45.0‌
12.57‌
(f)
5,371‌
1.08‌
0.12‌
64.1‌
17.15‌
4,938‌
1.08‌
0.80‌
57.1‌
(3.76‌)
(d)
4,523‌
1.08‌
(e)
0.13‌
(e)
63.3‌
(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,
2020.
(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.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
(g)
Period
from
February
17,
2015
date
operations
commenced,
through
December
31,
2015.
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
112
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.
In
addition
to
the
expenses
the
Funds
bear
directly,
each
of
the
Accounts
may
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
period
and
held
for
the
entire
period
(
January
1,
2020
to
June
30,
2020
),
unless
otherwise
noted.
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
cost
of
owning
different
funds.
Beginning
Account
Value
January
1,
2020
Ending
Account
Value
June
30,
2020
Expenses
Paid
During
Period
January
1,
2020 
to
June
30,
2020
(a)
Annualized
Expense
Ratio
Core
Plus
Bond
Account
Class
1
Actual
$
1,000.00
$
1,060.00
$
2.41
0.47
%
Hypothetical
1,000.00
1,022.53
2.36
0.47
Diversified
International
Account
Class
1
Actual
1,000.00
908.98
4.37
0.92
Hypothetical
1,000.00
1,020.29
4.62
0.92
Equity
Income
Account
Class
1
Actual
1,000.00
853.14
2.21
0.48
Hypothetical
1,000.00
1,022.48
2.41
0.48
Equity
Income
Account
Class
2
Actual
1,000.00
852.13
3.36
0.73
Hypothetical
1,000.00
1,021.23
3.67
0.73
Government
&
High
Quality
Bond
Account
Class
1
Actual
1,000.00
1,024.46
2.57
0.51
Hypothetical
1,000.00
1,022.33
2.56
0.51
LargeCap
Growth
Account
I
Class
1
Actual
1,000.00
1,105.47
3.61
0.69
Hypothetical
1,000.00
1,021.43
3.47
0.69
MidCap
Account
Class
1
Actual
1,000.00
951.12
2.67
0.55
Hypothetical
1,000.00
1,022.13
2.77
0.55
MidCap
Account
Class
2
Actual
1,000.00
950.02
3.88
0.80
Hypothetical
1,000.00
1,020.89
4.02
0.80
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
June
30,
2020
(unaudited)
113
Beginning
Account
Value
January
1,
2020
Ending
Account
Value
June
30,
2020
Expenses
Paid
During
Period
January
1,
2020 
to
June
30,
2020
(a)
Annualized
Expense
Ratio
Principal
Capital
Appreciation
Account
Class
1
Actual
$
1,000.00
$
965.49
$
3.13
0.64
%
Hypothetical
1,000.00
1,021.68
3.22
0.64
Principal
Capital
Appreciation
Account
Class
2
Actual
1,000.00
964.38
4.35
0.89
Hypothetical
1,000.00
1,020.44
4.47
0.89
Real
Estate
Securities
Account
Class
1
Actual
1,000.00
861.86
3.84
0.83
Hypothetical
1,000.00
1,020.74
4.17
0.83
Real
Estate
Securities
Account
Class
2
Actual
1,000.00
860.85
5.00
1.08
Hypothetical
1,000.00
1,019.49
5.42
1.08
SAM
Balanced
Portfolio
Class
1
Actual
1,000.00
958.52
1.17
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Balanced
Portfolio
Class
2
Actual
1,000.00
956.72
2.38
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Conservative
Balanced
Portfolio
Class
1
Actual
1,000.00
977.03
1.18
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Conservative
Balanced
Portfolio
Class
2
Actual
1,000.00
975.06
2.41
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Conservative
Growth
Portfolio
Class
1
Actual
1,000.00
939.82
1.16
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Conservative
Growth
Portfolio
Class
2
Actual
1,000.00
938.87
2.36
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Flexible
Income
Portfolio
Class
1
Actual
1,000.00
984.90
1.18
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Flexible
Income
Portfolio
Class
2
Actual
1,000.00
983.92
2.42
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
SAM
Strategic
Growth
Portfolio
Class
1
Actual
1,000.00
929.06
1.15
0.24
Hypothetical
1,000.00
1,023.67
1.21
0.24
SAM
Strategic
Growth
Portfolio
Class
2
Actual
1,000.00
928.01
2.35
0.49
Hypothetical
1,000.00
1,022.43
2.46
0.49
Short-Term
Income
Account
Class
1
Actual
1,000.00
1,023.35
2.57
0.51
Hypothetical
1,000.00
1,022.33
2.56
0.51
SmallCap
Account
Class
1
Actual
1,000.00
893.67
3.95
0.84
Hypothetical
1,000.00
1,020.69
4.22
0.84
SmallCap
Account
Class
2
Actual
1,000.00
892.53
5.13
1.09
Hypothetical
1,000.00
1,019.44
5.47
1.09
(a)
Expenses
are
equal
to
a
fund's
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
114
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.,
Principal
Exchange-Traded
Funds,
and
Principal
Diversified
Select
Real
Asset
Fund
which
are
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
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
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Elizabeth
Ballantine
Director
since
2004
Member,
Nominating
and
Governance
Committee
1948
Principal,
EBA
Associates
127
Durango
Herald,
Inc.;
McClatchy
Newspapers,
Inc.
Leroy
T.
Barnes,
Jr.
Director
since
2012
Member,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1951
Retired.
127
McClatchy
Newspapers,
Inc.;
Frontier
Communications,
Inc.;
formerly,
Herbalife
Ltd.
Craig
Damos
Lead
Independent
Director
since
2020
Director
since
2008
Member,
Nominating
and
Governance
Committee
Member,15(c)
Committee
Member,
Executive
Committee
1954
President,
C.P.
Damos
Consulting
LLC
127
None
Mark
A.
Grimmett
Director
since
2004
Member,
Audit
Committee
Member,
15(c)
Committee
Member,
Executive
Committee
1960
Formerly,
Executive
Vice
President
and
CFO,
Merle
Norman
Cosmetics,
Inc.
127
None
Fritz
S.
Hirsch
Director
since
2005
Member,
Nominating
and
Governance
Committee
Member,
Operations
Committee
Member,
15(c)
Committee
1951
Formerly,
CEO,
MAM
USA
127
MAM
USA
Tao
Huang
Director
since
2012
Member,
Operations
Committee
Member,
15(c)
Committee
1962
Retired.
127
Armstrong
World
Industries,
Inc.
and
Equity
Lifestyle
Properties,
Inc.
Karen
(“Karrie”)
McMillan
Director
since
2014
Member,
Operations
Committee
1961
Managing
Director,
Patomak
Global
Partners,
LLC
127
None
Elizabeth
A.
Nickels
Director
since
2015
Member,
Audit
Committee
1962
Retired.
127
SpartanNash;
formerly:
Charlotte
Russe;
Follet
Corporation;
PetSmart;
Spectrum
Health
Systems
Mary
M.
(“Meg”)
VanDeWeghe
Director
since
2018
Member,
Operations
Committee
1959
CEO
and
President,
Forte
Consulting,
Inc.
127
Denbury
Resources
Inc.
and
Helmerich
&
Payne;
Formerly:
Brown
Advisory;
B/E
Aerospace;
WP
Carey;
Nalco
(and
its
successor
Ecolab)
115
The
following
directors
are
considered
to
be
“interested
persons”
as
defined
in
the
1940
Act,
because
of
an
affiliation
with
the
Manager
and
Principal
Life.
Correspondence
intended
for
each
Director
who
is
other
than
an
Interested
Director
may
be
sent
to
655
9th
Street,
Des
Moines,
IA
50392.
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Timothy
M.
Dunbar
Chair
and
Director
since
2019
Member,
Executive
Committee
1957
Director,
PGI
since
2018
President,
Principal
Global
Asset
Management,
PGI,
Principal
Life
Insurance
Company
(“PLIC”),
Principal
Financial
Services,
Inc.
(“PFSI”),
and
Principal
Financial
Group
(“PFG”)
since
2018
Chair/Executive
Vice
President,
RobustWealth,
Inc.
since
2018
Director,
Post
Advisory
Group,
LLC
(“Post”)
since
2018
Executive
Vice
President/Chief
Investment
Officer,
PLIC,
PFSI
and
PFG
(2014-2018)
127
None
Patrick
Halter
Director
since
2017
1959
Chief
Executive
Officer
and
President,
PGI
since
2018
Chief
Operating
Officer,
PGI
(2017-2018)
Chair,
PGI
since
2018
Director,
PGI
(2003-2018)
Director,
Finisterre
Capital
LLP
since
2018
Director,
Origin
Asset
Management
LLP
since
2018
Chair,
Post
since
2017
Chief
Executive
Officer,
Principal
Real
Estate
Investors,
LLC
(“PREI”)
since
2005
Chair,
PREI
since
2004
Chair,
Spectrum
Asset
Management,
Inc.
since
2017
Director,
CCIP,
LLC
since
2017
127
None
116
The
following
table
presents
officers
of
the
Funds.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Kamal
Bhatia
President,
Chief
Executive
Officer
1972
President,
PFG,
PFSI,
and
PLIC
since
2019
Principal
Executive
Officer,
OC
Private
Capital
(2017-2019)
Senior
Vice
President,
OppenheimerFunds
(2011-
2019)
Randy
D.
Bolin
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1961
Vice
President/Associate
General
Counsel,
PFSI
since
2013
Vice
President/Associate
General
Counsel,
PGI
since
2016
Assistant
General
Counsel,
PGI
(2007–2016)
Vice
President/Associate
General
Counsel,
PLIC
since
2013
Tracy
W.
Bollin
Chief
Financial
Officer
Des
Moines,
IA
50392
1970
Managing
Director,
PGI
since
2016
Chief
Operating
Officer,
PMC
(2015-2017)
Chief
Financial
Officer,
PFA
(2010-2015)
Senior
Vice
President,
PFD
since
2015
Chief
Financial
Officer,
PFD
(2010-2016)
Senior
Vice
President,
PMC
(2015–2017)
Chief
Financial
Officer,
PMC
(2010-2015)
Director,
PMC
(2014–2017)
Chief
Financial
Officer,
PSI
(2010-2015)
President,
PSS
since
2015
Chief
Financial
Officer,
PSS
(2010-2015)
Gina
L.
Graham
Treasurer
Des
Moines,
IA
50392
1965
Vice
President/Treasurer,
PFA
since
2016
Vice
President/Treasurer,
PFD
since
2016
Vice
President/Treasurer,
PGI
since
2016
Vice
President/Treasurer,
PLIC
since
2016
Vice
President/Treasurer,
PMC
(2016-2017)
Vice
President/Treasurer,
PREI
since
2016
Vice
President/Treasurer,
PSI
since
2016
Vice
President/Treasurer,
PSS
since
2016
Laura
B.
Latham
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Counsel,
PGI
since
2018
Prior
thereto,
Attorney
in
Private
Practice
Diane
K.
Nelson
AML
Officer
Des
Moines,
IA
50392
1965
Chief
Compliance
Officer/AML
Officer,
PSS
since
2015
Compliance
Advisor,
PMC
(2013-2015)
Sara
L.
Reece
Vice
President
and
Controller
Des
Moines,
IA
50392
1975
Director
-
Accounting,
PLIC
since
2015
Assistant
Financial
Controller,
PLIC
prior
to
2015
Teri
R.
Root
Chief
Compliance
Officer
Des
Moines,
IA
50392
1979
Interim
Chief
Compliance
Officer
(2018)
Deputy
Chief
Compliance
Officer
(2015-2018)
Deputy
Chief
Compliance
Officer,
PGI
since
2017
Vice
President
and
Chief
Compliance
Officer,
PMC
(2015–2017)
Vice
President,
PSS
since
2015
Britney
L.
Schnathorst
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1981
Counsel,
PLIC
since
2013
Adam
U.
Shaikh
Assistant
Counsel
Des
Moines,
IA
50392
1972
Assistant
General
Counsel,
PGI
since
2018
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
since
2006
Counsel,
PMC
(2014-2017)
John
L.
Sullivan
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1970
Counsel,
PGI
since
2019
Prior
thereto,
Attorney
in
Private
Practice
117
The
15(c)
Committee’s
primary
purpose
is
to
assist
the
Board
in
performing
the
annual
review
of
the
Fund’s
advisory
and
sub-advisory
agreements
pursuant
to
Section
15(c)
of
the
1940
Act.
The
Committee
responsibilities
include
requesting
and
reviewing
materials.
The
Audit
Committee’s
primary
purpose
is
to
assist
the
Board
in
fulfilling
certain
of
its
responsibilities.
The
Audit
Committee
serves
as
an
independent
and
objective
party
to
monitor
the
Fund
Complex’s
accounting
policies,
financial
reporting
and
internal
control
system,
as
well
as
the
work
of
the
independent
registered
public
accountants.
The
Audit
Committee
assists
Board
oversight
of
1)
the
integrity
of
the
Fund
Complex’s
financial
statements;
2)
the
Fund
Complex’s
compliance
with
certain
legal
and
regulatory
requirements;
3)
the
independent
registered
public
accountants’
qualifications
and
independence;
and
4)
the
performance
of
the
Fund
Complex’s
independent
registered
public
accountants.
The
Audit
Committee
also
provides
an
open
avenue
of
communication
among
the
independent
registered
public
accountants,
the
Manager’s
internal
auditors,
Fund
Complex
management,
and
the
Board.
The
Executive
Committee’s
primary
purpose
is
to
exercise
certain
powers
of
the
Board
when
the
Board
is
not
in
session.
When
the
Board
is
not
in
session,
the
Committee
may
exercise
all
powers
of
the
Board
in
the
management
of
the
business
of
the
Fund
Complex
except
the
power
to
1)
authorize
dividends
or
distributions
on
stock;
2)
issue
stock,
except
as
permitted
by
law;
3)
recommend
to
the
stockholders
any
action
which
requires
stockholder
approval;
4)
amend
the
bylaws;
or
5)
approve
any
merger
or
share
exchange
which
does
not
require
stockholder
approval.
The
Nominating
and
Governance
Committee’s
primary
purpose
is
to
oversee
the
structure
and
efficiency
of
the
Board
and
the
committees
established
by
the
Board.
The
Committee
responsibilities
include
evaluating
Board
membership
and
functions,
committee
membership
and
functions,
insurance
coverage,
and
legal
matters.
The
nominating
functions
of
the
Committee
include
selecting
and
nominating
all
candidates
who
are
not
“interested
persons”
of
the
Fund
Complex
for
election
to
the
Board.
Generally,
the
Committee
requests
director
nominee
suggestions
from
the
committee
members
and
management.
In
addition,
the
Committee
will
consider
Director
candidates
recommended
by
shareholders
of
the
Fund
Complex.
Recommendations
should
be
submitted
in
writing
to
Principal
Funds,
Inc.
at
711
High
Street,
Des
Moines,
IA
50392.
When
evaluating
a
person
as
a
potential
nominee
to
serve
as
an
Independent
Director,
the
Committee
will
generally
consider,
among
other
factors:
age;
education;
relevant
business
experience;
geographical
factors;
whether
the
person
is
“independent”
and
otherwise
qualified
under
applicable
laws
and
regulations
to
serve
as
a
director;
and
whether
the
person
is
willing
to
serve,
and
willing
and
able
to
commit
the
time
necessary
for
attendance
at
meetings
and
the
performance
of
the
duties
of
an
independent
director.
The
Committee
also
meets
personally
with
the
nominees
and
conducts
a
reference
check.
The
final
decision
is
based
on
a
combination
of
factors,
including
the
strengths
and
the
experience
an
individual
may
bring
to
the
Board.
The
Committee
believes
the
Board
generally
benefits
from
diversity
of
background,
experience
and
views
among
its
members,
and
considers
these
factors
in
evaluating
the
composition
of
the
Board.
The
Board
does
not
use
regularly
the
services
of
any
professional
search
firms
to
identify
or
evaluate
or
assist
in
identifying
or
evaluating
potential
candidates
or
nominees.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Dan
L.
Westholm
Assistant
Treasurer
Des
Moines,
IA
50392
1966
Assistant
Vice
President/Treasurer,
PGI
since
2017
Assistant
Vice
President/Treasury,
PFA
since
2013
Assistant
Vice
President/Treasury,
PFD
since
2013
Assistant
Vice
President/Treasury,
PLIC
since
2014
Assistant
Vice
President/Treasury,
PMC
(2013-
2017)
Assistant
Vice
President/Treasury,
PSI
since
2013
Assistant
Vice
President/Treasury,
PSS
since
2013
Beth
C.
Wilson
Vice
President
and
Secretary
Des
Moines,
IA
50392
1956
Director
and
Secretary
–
Funds,
PLIC
Clint
L.
Woods
Counsel,
Vice
President,
and
Assistant
Secretary
Des
Moines,
IA
50392
1961
Of
Counsel
(2017-2018)
Vice
President
(2016-2017)
Counsel
(2015-2017)
Vice
President,
PLIC
since
2015
Associate
General
Counsel,
Governance
Officer,
and
Assistant
Corporate
Secretary,
PLIC
since
2013
Jared
Yepsen
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1981
Counsel,
PGI
since
2017
Counsel,
PLIC
since
2015
Senior
Attorney,
Transamerica
Life
Insurance
Company
(2013-2015)
118
The
Operations
Committee’s
primary
purpose
is
to
oversee
the
provision
of
administrative
and
distribution
services
to
the
Funds
Complex,
communications
with
the
Fund
Complex’s
shareholders,
and
review
and
oversight
of
the
Fund
Complex’s
operations.
Additional
information
about
the
Fund
is
available
in
the
Prospectus
dated
May
1,
2020
and
as
supplemented,
and
the
Statement
of
Additional
Information
dated
May
1,
2020
and
as
supplemented.
These
documents
may
be
obtained
free
of
charge
by
writing
Principal
Funds,
Inc.,
P.O.
Box
8024,
Boston,
MA
02266-8024
or
telephoning
1-800-222-5852.
The
prospectus
may
be
viewed
at
www.PrincipalFunds.
com/prospectuses-pvc.
PROXY
VOTING
POLICIES
A
description
of
the
policies
and
procedures
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
the
results
of
the
proxy
votes
for
the
most
recent
twelve
months
ended
June
30
may
be
obtained
free
of
charge
by
telephoning
1-800-222-5852,
or
on
the
SEC
website
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
each
year
as
a
part
of
Form
N-PORT.
The
Fund’s
Form
N-PORT
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
1-202-551-8090.
STATEMENT
REGARDING
LIQUIDITY
RISK
MANAGEMENT
PROGRAM
Management
has
evaluated
events
and
transactions
that
have
occurred
The
Board
of
Directors
of
Principal
Funds,
Inc.
(the
“Board”)
met
on
March
10,
2020
to
review
the
liquidity
risk
management
program
(the
“Program”)
applicable
to
all
series
of
the
Principal
Variable
Contracts
Funds,
Inc., (each,
a
“Fund”),
pursuant
to
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”)
for
the
period
from
December
1,
2018
through
December
31,
2019
(the
“Reporting
Period”).
At
the
meeting,
the
committee
designated
by
the
Board
to
administer
the
Program,
the
Liquidity
Risk
Management
Committee
(the
“Committee”),
addressed
the
operation,
adequacy
and
effectiveness
of
the
Program,
the
operation
of
each
Fund’s
highly
liquid
investment
minimum,
where
applicable,
and
any
material
changes
made
to
the
Program
during
the
Reporting
Period.
The
Committee
noted
key
factors
it
considered
when
assessing,
managing
and
reviewing
each
Fund’s
liquidity
risk.
Such
factors
included
each
Fund’s
investment
strategy
and
liquidity
of
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions,
including
(a)
whether
the
Fund’s
investment
strategy
is
appropriate
for
an
open-end
fund,
(b)
the
extent
to
which
the
strategy
involves
a
relatively
concentrated
portfolio
or
large
positions
in
particular
issuers,
and
(c)
the
use
of
borrowings
for
investment
purposes
and
use
of
leveraged
derivatives
and
financial
commitment
obligations;
short-term
and
long-term
cash
flow
projections
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
holdings
of
cash
and
cash
equivalents,
as
well
as
borrowing
arrangements
and
other
funding
sources;
and
each
Fund’s
shareholder
ownership
concentration.
There
were
no
material
changes
to
the
Program
during
the
Reporting
Period.
The
Committee
concluded,
based
on
the
operation
of
the
functions
as
described
in
the
Report
that
the
Program
is
operating
as
intended
and
is
effective
in
implementing
the
requirements
of
the
Liquidity
Rule.
119
BOARD
CONSIDERATION
OF
INVESTMENT
ADVISORY
CONTRACTS
During
the
period
covered
by
this
report,
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
(“PVC”)
approved
an
Amended
and
Restated
Subadvisory
Agreement
(the
“Subadvisory
Agreement”)
between
Principal
Global
Investors,
LLC
(the
“Manager”)
and
T.
Rowe
Price
Associates,
Inc.
(the
“Subadvisor”)
related
to
the
LargeCap
Growth
Account
I.
in
connection
with
a
proposal
to
change
the
methodology
for
calculating
the
subadvisory
fee
and
to
amend
the
subadvisory
fee
schedule
to
reduce
the
effective
subadvisory
fee
rate
payable
at
certain
asset
levels.
Approval
of
Amended
and
Restated
Subadvisory
Agreement
LargeCap
Growth
Account
I
On
June
8,
2020,
the
Board
considered
for
the
LargeCap
Growth
Account
I
(the
“Account”)
the
approval
of
an
amended
fee
schedule
under
the
subadvisory
agreement
between
the
Manager
and
the
Subadvisor
with
respect
to
the
Account,
which
would
result
in
a
reduction
of
the
effective
subadvisory
rate
payable
at
certain
asset
levels.
The
Board
reviewed
materials
received
from
the
Manager
regarding
the
proposed
amendment
to
the
Subadvisory
Agreement
and
noted
that
because
the
subadvisory
fee
was
paid
by
the
Manager,
the
amendment
would
not
change
the
management
fee
rate
paid
by
the
Account.
The
Board
considered
the
Manager’s
representation
that
the
amendment
would
not
reduce
the
quality
or
quantity
of
the
services
the
Subadvisor
provides
to
the
Account
and
that
the
Subadvisor’s
obligations
under
the
Subadvisory
Agreement
would
remain
the
same
in
all
material
respects.
The
Board
also
considered
that
the
Manager
was
not
proposing
any
material
changes
to
the
terms
of
the
Subadvisory
Agreement
other
than
to
the
methodology
for
calculating
the
subadvisory
fee
and
the
subadvisory
fee
schedule.
The
Board
considered
that
they
had
last
approved
the
Subadvisory
Agreement
for
the
Account
during
the
annual
contract
renewal
process
that
concluded
at
the
Board
of
Directors’
September
2019
meeting.
They
noted
that
during
the
annual
contract
renewal
process,
they
had
considered
the
nature,
quality
and
extent
of
the
services
provided
by
the
Subadvisor
under
the
Subadvisory
Agreement
and
had
concluded,
based
upon
the
information
provided,
that
the
terms
of
the
Subadvisory
Agreement
were
reasonable
and
that
approval
of
the
Subadvisory
Agreement
was
in
the
best
interests
of
the
Account.
Based
upon
all
of
the
information
considered,
the
Board
concluded
that
it
was
in
the
best
interests
of
the
Account
to
approve
the
amended
Subadvisory
Agreement
and,
accordingly,
recommended
to
the
Board
of
Directors
the
approval
of
the
amended
Subadvisory
Agreement.
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This
report
must
be
preceded
or
accompanied
by
a
current
prospectus
for
the
Principal
Variable
Contracts
Funds,
Inc.
Principal
Funds
are
distributed
by
Principal
Funds
Distributor,
Inc.
Principal,
Principal
and
symbol
design,
and
Principal
Financial
Group
are
registered
trademarks
and
services
marks
of
Principal
Financial
Services,
Inc.,
a
Principal
Financial
Group
company.
©
2020
Principal
Financial
Services,
Inc.
|
MM1291B-12
|
06/2020
|
871465

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 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

 
Not applicable.
 
 
ITEM 13 – 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/ Kamal Bhatia
 
            Kamal Bhatia, President and CEO
 
Date
8/6/2020
 
 
 
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/ Kamal Bhatia
 
            Kamal Bhatia, President and CEO
 
Date
8/6/2020
 
 
 
By
/s/ Tracy W. Bollin
 
            Tracy W. Bollin, Chief Financial Officer
 
Date
8/6/2020