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: 515-235-1719

Date of fiscal year end: December 31, 2022

Date of reporting period: December 31, 2022

ITEM 1 – REPORT TO STOCKHOLDERS

Principal

Variable

Contracts

Funds,

Inc.

Annual

Report

December

31

,

2022

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or

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if

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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

Economic

&

Financial

Market

Review

1

Important

Fund

Information

3

Blue

Chip

Account

(unaudited)

4

Bond

Market

Index

Account

(unaudited)

5

Core

Plus

Bond

Account

(unaudited)

6

Diversified

Balanced

Account

(unaudited)

7

Diversified

Balanced

Managed

Volatility

Account

(unaudited)

8

Diversified

Balanced

Volatility

Control

Account

(unaudited)

9

Diversified

Growth

Account

(unaudited)

10

Diversified

Growth

Managed

Volatility

Account

(unaudited)

11

Diversified

Growth

Volatility

Control

Account

(unaudited)

12

Diversified

Income

Account

(unaudited)

13

Diversified

International

Account

(unaudited)

14

Equity

Income

Account

(unaudited)

15

Global

Emerging

Markets

Account

(unaudited)

16

Government

&

High

Quality

Bond

Account

(unaudited)

17

LargeCap

Growth

Account

I

(unaudited)

18

LargeCap

S&P

500

Index

Account

(unaudited)

19

LargeCap

S&P

500

Managed

Volatility

Index

Account

(unaudited)

20

MidCap

Account

(unaudited)

21

Principal

Capital

Appreciation

Account

(unaudited)

22

Principal

LifeTime

2010

Account

(unaudited)

23

Principal

LifeTime

2020

Account

(unaudited)

24

Principal

LifeTime

2030

Account

(unaudited)

25

Principal

LifeTime

2040

Account

(unaudited)

26

Principal

LifeTime

2050

Account

(unaudited)

27

Principal

LifeTime

2060

Account

(unaudited)

28

Principal

LifeTime

Strategic

Income

Account

(unaudited)

29

Real

Estate

Securities

Account

(unaudited)

30

SAM

Balanced

Portfolio

(unaudited)

31

SAM

Conservative

Balanced

Portfolio

(unaudited)

32

SAM

Conservative

Growth

Portfolio

(unaudited)

33

SAM

Flexible

Income

Portfolio

(unaudited)

34

SAM

Strategic

Growth

Portfolio

(unaudited)

35

Short-Term

Income

Account

(unaudited)

36

SmallCap

Account

(unaudited)

37

U.S.

LargeCap

Buffer

July

Account

(unaudited)

38

Financial

Statements

39

Notes

to

Financial

Statements

102

Schedules

of

Investments

128

Financial

Highlights

(Includes

performance

information)

259

Report

of

Independent

Registered

Public

Accounting

Firm

333

Shareholder

Expense

Example

335

Supplemental

Information

338

1

Economic

&

Financial

Market

Review

Global

economic

growth

continued

to

normalize

lower

as

a

tumultuous

2022

came

to

a

close.

Plagued

by

geopolitical

disruptions,

continued

supply

constraints,

and

wage

pressures,

global

inflation,

the

primary

driver

of

economic

angst

last

year,

increased

from

4.9%

in

December

2021

to

a

peak

of

7.5%

in

September

2022.

It

eventually

dropped

to

7.0%

in

November.

Despite

being

well

above

central

bank

targets,

downward

trending

inflation

in

4Q

2022

was

a

sign

of

relief

from

many

investors—oil

and

goods

prices

finally

rolled

over

and

appear

to

have

halted

headline

and

core

inflation’s

march

higher.

Unfortunately,

services

inflation,

particularly

shelter—a

key

component

of

the

Consumer

Price

Index

(CPI)—remains

elevated.

To

combat

the

persistently

high

inflation,

many

global

central

banks

embarked

on

aggressive

tightening

paths

in

2022.

While

global

policy

rates

rose

by

an

average

of

232

basis

points

(bps),

the

United

States

(U.S.)

Federal

Reserve

(Fed)

hiked

interest

rates

seven

times,

for

a

total

of

425

bps.

As

a

result,

hawkish

monetary

policies

weighed

heavily

on

global

financial

conditions

throughout

the

year.

Despite

U.S.

real

gross

domestic

product

(GDP)

growing

at

an

average

quarter-over-quarter

annualized

rate

of

2.0%

in

the

four

quarters

ending

4Q

2022

and

global

manufacturing

Purchasing

Manager’s

Index

(PMI)

reading

averaging

above

50

for

the

last

twelve

months,

economic

activity

slowed

in

the

fourth

quarter.1

Within

emerging

markets,

which

also

experienced

declining

PMIs,

China’s

economy

was

battered

by

recurring

lockdowns

and

weak

demand.

While

the

recent

turn

in

COVID-19

policy

has

caused

some

short-term

pain

in

China,

the

opening

of

China’s

economy

will

likely

bring

growth

to

the

region

in

2023.

As

global

economies

faltered,

global

earnings

growth

slowed

further

and

ended

the

year

barely

positive.

Compared

to

the

same

time

last

year,

MSCI

All

Country

World

Index

(ACWI)

trailing

twelve-months

earnings-per-share

(TTM

EPS)

grew

by

3%.

MSCI

World

Index

TTM

EPS

increased

by

4%,

much

higher

than

the

MSCI

Emerging

Market

Index’s

-2%.

In

developed

markets,

the

MSCI

U.S.

Index

earnings

grew

faster

than

the

MSCI

Europe

Index,

which

was

severely

impacted

by

the

geopolitical

challenges

in

eastern

Europe

and

subsequent

surge

in

fuel

prices.

U.S.

mid-cap

(17%)

and

small-cap

(10%)

stocks

delivered

much

higher

earnings

growth

than

large-cap

(7%)

stocks,

while

value

stocks

(10%)

earnings

growth

outpaced

growth

stocks

(3%)

for

the

year.

Global

bonds

slightly

outperformed

global

equities

in

2022,

but

both

experienced

losses.

In

the

U.S.,

both

U.S.

equities

and

bonds

recorded

double-digit

yearly

declines

for

the

first

time

since

the

19th

century.

In

USD

terms,

the

MSCI

ACWI

Index

fell

-18%

year-over-year,

while

the

Bloomberg

Global

Aggregate

Index

was

down

17%.

Within

equities,

developed

markets

outperformed

emerging

markets

by

2%,

while

the

U.S.

underperformed

developed

markets

ex-U.S.

by

6%.

The

NASDAQ

100

was

the

worst

performer

among

major

markets,

with

a

32%

loss.

U.S.

value,

represented

by

the

Russel

1000

Value

Index,

was

the

top

outperformer

with

an

8%

loss.

The

Bloomberg

U.S.

Treasury

Index

delivered

a

12%

loss

as

the

U.S.

10-year

Treasury

yield

rose

from

1.51%

to

3.87%.

Global

high-yield

bonds

outperformed

investment-grade

corporate

bonds

and

global

treasury

bonds

by

4%

and

5%,

respectively.

DXY

Index,

a

proxy

for

USD

strength,

increased

by

8%.

Commodity

prices

represented

by

the

S&P

GSCI

Total

Return

Index

increased

by

26%,

and

Nymex

crude

oil

rose

slightly

from

$75.2

to

$80.3

USD/

barrel.

Heading

into

2023,

hawkish

monetary

policy

remains

a

headwind

to

global

growth,

particularly

from

the

U.S.

Federal

Reserve,

but

the

end

of

this

central

bank

hiking

cycle

is

likely

within

sight.

Inflation

is

starting

to

decelerate

due

to

improved

supply

chains

and

lower

energy

prices,

global

equity

valuations

are

considerably

more

attractive,

and

there

may

also

be

more

significant

opportunities

in

core

fixed

income

and

real

assets

as

interest

rates

stabilize.

In

2023,

diversification

across

asset

classes

is

recommended,

inflation

mitigation

continues

to

be

necessary,

and

taking

advantage

of

attractively

valued

global

opportunities

will

likely

be

rewarded.

*

Unless

otherwise

stated,

data

sources

are

Bloomberg,

FactSet,

and

Principal

Asset

Allocation.

Data

as

of

December

31,

2022.

1

In

global

PMI

readings,

a

number

above

50

means

that

manufacturing

activity

is

expanding,

and

a

number

below

50

indicates

contraction.

Index

descriptions:

MSCI

All

Country

World

Index

(ACWI)

includes

large

and

mid-cap

stocks

across

developed

and

emerging

market

countries.

MSCI

World

Index

captures

large

and

mid-cap

representation

across

23

Developed

Markets

(DM)

countries.

MSCI

World

ex

U.S.

Index

captures

large

and

mid-cap

representation

across

22

of

23

Developed

Markets

(DM)

countries--

excluding

the

United

States.

MSCI

Europe

Index

captures

large

and

mid-cap

representation

across

15

Developed

Markets

(DM)

countries

in

Europe.

2

Economic

&

Financial

Market

Review

MSCI

Emerging

Markets

Index

consists

of

large

and

mid-cap

companies

across

24

countries

and

represents

10%

of

the

world

market

capitalization.

The

index

covers

approximately

85%

of

the

free

float-adjusted

market

capitalization

in

each

of

the

24

countries.

MSCI

U.S.

Index

is

designed

to

measure

the

performance

of

the

large

and

mid-cap

segments

of

the

US

market

NASDAQ

100

Index

is

a

basket

of

the

100

largest,

most

actively

traded

U.S.

companies

listed

on

the

NASDAQ

stock

exchange.

The

index

includes

companies

from

various

industries

except

for

the

financial

industry,

like

commercial

and

investment

banks.

Russell

1000

Growth

Index

measures

the

performance

of

the

large-cap

growth

segment

of

the

U.S.

equity

universe.

Russell

1000

Value

Index

measures

the

performance

of

the

large-cap

value

segment

of

the

U.S.

equity

universe.

Bloomberg

Global

Aggregate

Index

is

a

flagship

measure

of

global

investment

grade

debt

from

24

local

currency

markets.

This

multi-currency

benchmark

includes

treasury,

government-related,

corporate,

and

securitized

fixed-rate

bonds

from

both

developed

and

emerging

markets

issuers.

Bloomberg

U.S.

Treasury

Index

measures

U.S.

dollar-denominated,

fixed-rate,

nominal

debt

issued

by

the

U.S.

Treasury.

U.S.

Dollar

Index

(USDX,

DXY,

DX)

is

an

index

(or

measure)

of

the

value

of

the

United

States

dollar

relative

to

a

basket

of

foreign

currencies,

often

referred

to

as

a

basket

of

U.S.

trade

partners'

currencies.

S&P

GSCI

Total

Return

Index

is

an

index

of

24

exchange-traded

futures

contracts

that

represent

a

large

portion

of

the

global

commodities

market.

3

Important

Fund

Information

The

following

information

applies

to

all

funds

shown

in

the

annual

report:

The

line

graphs

on

the

following

pages

illustrate

the

growth

of

a

hypothetical

$10,000

investment.

For

each

fund,

the

illustration

is

based

on

performance

of

Class

3

shares

for

Blue

Chip

Account,

Class

2

shares

for

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,

and

U.S.

LargeCap

Buffer

July

Account

and

Class

1

shares

for

all

other

funds.

The

performance

of

other

share

classes

will

differ.

Investment

results

shown

represent

historical

performance

and

do

not

guarantee

future

results.

Your

investment’s

returns

and

principal

values

will

fluctuate

with

changes

in

interest

rates

and

other

market

conditions

so

the

value,

when

redeemed,

may

be

worth

more

or

less

than

original

costs.

Performance

shown

does

not

account

for

fees,

expenses,

and

charges

of

any

variable

insurance

contract

or

retirement

plan.

If

these

fees

were

reflected,

performance

would

be

lower.

Current

performance

may

be

lower

or

higher

than

the

performance

shown.

For

more

information,

including

the

most

recent

month-end

performance,

call

your

financial

professional,

or

call

800-222-5852.

*

Performance

assumes

reinvestment

of

all

dividends

and

capital

gains.

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

fund’s

oldest

share

class,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

Performance

does

not

reflect

the

impact

of

federal,

state,

or

municipal

taxes.

If

it

did,

performance

would

be

lower.

**

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

.

4

Blue

Chip

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

with

large

market

capitalizations

at

the

time

of

purchase

that,

in

the

opinion

of

Principal

Global

Investors,

LLC

("PGI,"

the

fund's

investment

advisor),

display

characteristics

of

a

"blue

chip"

company.

For

this

fund,

companies

with

large

market

capitalizations

are

those

with

market

capitalizations

similar

to

companies

in

the

Russell

1000

Growth

Index.

Over

its

fiscal

year,

the

Blue

Chip

Account’s

relative

performance

benefited

from

positive

sector

allocation,

primarily

from

its

overweight

position

in

the

Financial

and

Industrials

sectors.

The

largest

contributor

to

performance

was

O’Reilly

Automotive,

a

leading

auto

parts

aftermarket

retailer,

serving

both

consumers

who

repair

their

own

vehicles

and

professional

mechanics

through

their

more

than

5,000

stores.

The

next

largest

contributor

was

Progressive.

Progressive

is

the

3rd

largest

auto

insurer

in

the

U.S.,

the

largest

seller

of

motorcycle

policies,

market-leader

in

commercial

auto

insurance,

and

one

of

the

top

15

homeowners

carriers.

The

third

largest

contributor

was

CoStar

Group,

commercial

real

estate’s

leading

provider

of

information,

analytics

and

online

marketplaces.

Started

over

35

years

ago

by

current

CEO

Andy

Florance,

CoStar

has

grown

to

be

an

essential

part

of

the

real

estate

ecosystem

and

is

sometimes

called

the

“Bloomberg

for

commercial

real

estate”.

Company

selection

in

Healthcare

and

Information

Technology

was

a

drag

on

relative

performance

during

the

year.

The

largest

detractor

for

the

year

was

Amazon,

a

dominant

online

retailer

and

cloud

computing

business.

The

second

largest

detractor

from

performance

was

Alphabet,

the

parent

company

of

a

collection

of

high-quality

businesses

including

Google

Search

and

YouTube.

The

third

largest

detractor

was

Microsoft.

Its

two

largest

businesses,

Office

and

cloud

platform

Azure,

continue

to

gain

share

as

they

make

businesses

more

efficient.

Satya

Nadella

and

Amy

Hood

(CEO

and

CFO

respectively)

ensure

Microsoft

is

focused

on

large

and

growing

opportunities.

Value

of

a

$10,000

Investment*

December

9,

2020

-

December

31,

2022

1-Year

Since

Inception

Inception

Date

Class

3

Shares

-31.20%

-5.64%

12/9/20

5

Bond

Market

Index

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

current

income.

Under

normal

circumstances,

the

fund

uses

a

passive

investment

approach

known

as

"sampling"

to

invest

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

investments

designed

to

track

the

Bloomberg

U.S.

Aggregate

Bond

Index

(the

"index")

at

the

time

of

purchase.

The

index

is

composed

of

investment

grade,

fixed

rate

debt

issues

with

maturities

of

one

year

or

more,

including

government

securities,

corporate

securities,

and

asset-backed

and

mortgage-backed

securities

(securitized

products).

Overall,

the

portfolio

performed

in

line

with

the

benchmark

during

the

past

year.

The

top

contributors

were

security

specific

impacts

within

investment

grade

corporate

bonds,

slightly

lower

allocation

compared

to

benchmark

weight

to

commercial

mortgage-backed

securities,

and

security

specific

impacts

within

government

related

credit.

The

top

detractors

were

security

specific

impacts

within

mortgage-backed

securities,

slightly

lower

allocation

compared

to

benchmark

weight

to

asset-backed

securities,

and

slightly

higher

allocation

compared

to

benchmark

weight

to

investment

grade

corporate

bonds.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-13.16%

-0.20%

0.76%

5/15/12

6

Core

Plus

Bond

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

current

income

and,

as

a

secondary

objective,

capital

appreciation.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

bonds

or

other

debt

securities

at

the

time

of

purchase.

Such

investments

include

securities

issued

or

guaranteed

by

the

U.S.

government

or

its

agencies

or

instrumentalities

(including

collateralized

mortgage

obligations);

asset-backed

securities

and

mortgage-backed

securities

(securitized

products);

corporate

bonds;

and

foreign

securities,

including

emerging

market

securities.

During

the

past

year

the

top

contributing

factors

included

duration

positioning,

security

selection

within

below

investment

grade

corporate

bonds,

and

overweight

allocation

to

mortgage-backed

securities.

During

the

past

year

the

top

detracting

factors

included

out-of-index

allocation

to

below

investment

grade

corporate

bonds,

security

selection

within

investment

grade

corporate

bonds,

and

security

selection

within

emerging

market

debt.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-14.13%

0.27%

1.39%

12/18/87

7

Diversified

Balanced

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

as

high

a

level

of

total

return

(consisting

of

reinvested

income

and

capital

appreciation)

as

is

consistent

with

reasonable

risk.

The

fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

ETFs

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-

Traded

Funds,

and

other

fund

complexes.

It

generally

allocates

approximately

50%

of

its

assets

to

equity

index

underlying

funds

to

gain

broad

market

capitalization

exposure

to

both

U.S.

and

non-U.S.

investments,

including

investments

in

smaller

companies,

and

approximately

50%

to

fixed-income

index

underlying

funds

for

intermediate

duration

fixed-income

exposure.

Equity

markets

were

sharply

negative

in

2022.

The

reality

of

a

global

economic

slow-down,

ongoing

geopolitical

unrest,

and

aggressive

global

central

bank

policy

tightening

to

tame

inflation

weighed

on

global

markets.

U.S.

mid-cap

and

small-cap

equities

outperformed

large-

caps,

but

all

three

were

down

double-digits.

Developed

ex-U.S.

equities

experienced

similar

levels

of

decline.

Aggressive

policy

hikes

by

the

Fed,

along

with

a

deteriorating

economic

outlook,

pushed

fixed

income

into

negative

territory

but

it

slightly

outperformed

global

equities

on

the

year.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date***

Class

1

Shares

-14.85%

4.15%

5.92%

5/1/17

12/30/09

Class

2

Shares

-15.10%

3.89%

5.77%

12/30/09

–

Class

3

Shares

-15.24%

3.73%

5.61%

12/9/20

12/30/09

^

The

Fund

uses

a

blended

benchmark,

Diversified

Balanced

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Balanced

Custom

Index

is

composed

of

50%

Bloomberg

U.S.

Aggregate

Bond

Index,

35%

S&P

500

Index,

7%

MSCI

EAFE

Index

NTR,

4%

S&P

MidCap

400

Index,

and

4%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

8

Diversified

Balanced

Managed

Volatility

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

as

high

a

level

of

total

return

as

is

consistent

with

reasonable

risk,

with

an

emphasis

on

managing

volatility.

The

fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

exchange-traded

funds

("ETFs")

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-Traded

Funds

and

other

fund

complexes

(collectively,

the

"underlying

funds").

It

generally

allocates

approximately

50%

of

its

assets

to

equity

index

underlying

funds

to

gain

broad

market

capitalization

exposure

to

both

U.S.

and

non-U.S.

investments

and

approximately

50%

to

fixed-income

index

underlying

funds

for

intermediate

duration

fixed-income

exposure.

Equity

markets

were

sharply

negative

in

2022.

The

reality

of

a

global

economic

slow-down,

ongoing

geopolitical

unrest,

and

aggressive

global

central

bank

policy

tightening

to

tame

inflation

weighed

on

global

markets.

U.S.

mid-cap

and

small-cap

equities

outperformed

large-

caps,

but

all

three

were

down

double-digits.

Developed

ex-U.S.

equities

experienced

similar

levels

of

decline.

Aggressive

policy

hikes

by

the

Fed,

along

with

a

deteriorating

economic

outlook,

pushed

fixed

income

into

negative

territory

but

it

slightly

outperformed

global

equities

on

the

year.

Value

of

a

$10,000

Investment*

October

31,

2013

-

December

31,

2022

1-Year

5-Year

Since

Inception

Inception

Date

Extended

Performance

Inception

Date***

Class

2

Shares

-14.63%

3.64%

4.79%

10/31/13

–

Class

3

Shares

-14.79%

3.48%

4.63%

12/9/20

10/31/13

^The

Fund

uses

a

blended

benchmark,

Diversified

Balanced

Managed

Volatility

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Balanced

Managed

Volatility

Custom

Index

is

composed

of

50%

Bloomberg

U.S.

Aggregate

Bond

Index,

35%

S&P

500

Index,

7%

MSCI

EAFE

Index

NTR,

4%

S&P

MidCap

400

Index,

and

4%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

9

Diversified

Balanced

Volatility

Control

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

as

high

a

level

of

total

return

(consisting

of

reinvested

income

and

capital

appreciation)

as

is

consistent

with

reasonable

risk,

while

seeking

to

control

volatility.

The

fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

exchange-traded

funds

(“ETFs”)

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-Traded

Funds

and

other

fund

complexes

(collectively,

the

"underlying

funds").

The

fund

also

invests

in

cash

and

cash

equivalents

(as

investments

and/or

to

serve

as

margin

or

collateral

for

derivatives

positions)

and

derivative

instruments

(primarily

exchange-traded

futures).

These

products

utilized

futures

to

manage

equity

exposures,

reducing

risk

and

volatility

profiles

as

dictated

by

market

conditions

and

proprietary

volatility

signals.

Equity

markets

were

sharply

negative

in

2022.

The

reality

of

a

global

economic

slow-down,

ongoing

geopolitical

unrest,

and

aggressive

global

central

bank

policy

tightening

to

tame

inflation

weighed

on

global

markets.

U.S.

mid-cap

and

small-cap

equities

outperformed

large-

caps,

but

all

three

were

down

double-digits.

Developed

ex-U.S.

equities

experienced

similar

levels

of

decline.

Aggressive

policy

hikes

by

the

Fed,

along

with

a

deteriorating

economic

outlook,

pushed

fixed

income

into

negative

territory

but

it

slightly

outperformed

global

equities

on

the

year.

Value

of

a

$10,000

Investment*

March

30,

2017

-

December

31,

2022

1-Year

5-Year

Since

Inception

Inception

Date

Extended

Performance

Inception

Date***

Class

2

Shares

-13.79%

2.80%

3.82%

3/30/17

–

Class

3

Shares

-13.84%

2.67%

3.70%

12/9/20

3/30/17

^The

Fund

uses

a

blended

benchmark,

Diversified

Balanced

Volatility

Control

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Balanced

Volatility

Control

Custom

Index

is

composed

of

50%

Bloomberg

U.S.

Aggregate

Bond

Index,

35%

S&P

500

Index,

7%

MSCI

EAFE

Index

NTR,

4%

S&P

MidCap

400

Index,

and

4%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

10

Diversified

Growth

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

capital

appreciation.

The

fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

exchange-traded

funds

(“ETFs”)

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-Traded

Funds,

and

other

fund

complexes

(collectively,

the

"underlying

funds").

It

generally

allocates

approximately

65%

of

its

assets

to

equity

index

underlying

funds

to

gain

broad

market

capitalization

exposure

to

both

U.S.

and

non-U.S.

investments

and

approximately

35%

to

fixed-income

index

underlying

funds

for

intermediate

duration

fixed-

income

exposure.

Equity

markets

were

sharply

negative

in

2022.

The

reality

of

a

global

economic

slow-down,

ongoing

geopolitical

unrest,

and

aggressive

global

central

bank

policy

tightening

to

tame

inflation

weighed

on

global

markets.

U.S.

mid-cap

and

small-cap

equities

outperformed

large-

caps,

but

all

three

were

down

double-digits.

Developed

ex-U.S.

equities

experienced

similar

levels

of

decline.

Aggressive

policy

hikes

by

the

Fed,

along

with

a

deteriorating

economic

outlook,

pushed

fixed

income

into

negative

territory

but

it

slightly

outperformed

global

equities

on

the

year.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date***

Class

2

Shares

-15.70%

4.96%

7.20%

12/30/09

–

Class

3

Shares

-15.84%

4.81%

7.04%

12/9/20

12/30/09

^The

Fund

uses

a

blended

benchmark,

Diversified

Growth

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Growth

Custom

Index

is

composed

of

45%

S&P

500

Index,

35%

Bloomberg

U.S.

Aggregate

Bond

Index,

10%

MSCI

EAFE

Index

NTR,

5%

S&P

MidCap

400

Index,

and

5%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

11

Diversified

Growth

Managed

Volatility

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

capital

appreciation,

with

an

emphasis

on

managing

volatility.

The

fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

exchange-traded

funds

(“ETFs”)

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-Traded

Funds

and

other

fund

complexes

(collectively,

the

"underlying

funds").

It

generally

allocates

approximately

65%

of

its

assets

to

equity

index

underlying

funds

to

gain

broad

market

capitalization

exposure

to

both

U.S.

and

non-U.S.

investments

and

approximately

35%

to

fixed-income

index

underlying

funds

for

intermediate

duration

fixed-income

exposure.

Equity

markets

were

sharply

negative

in

2022.

The

reality

of

a

global

economic

slow-down,

ongoing

geopolitical

unrest,

and

aggressive

global

central

bank

policy

tightening

to

tame

inflation

weighed

on

global

markets.

U.S.

mid-cap

and

small-cap

equities

outperformed

large-

caps,

but

all

three

were

down

double-digits.

Developed

ex-U.S.

equities

experienced

similar

levels

of

decline.

Aggressive

policy

hikes

by

the

Fed,

along

with

a

deteriorating

economic

outlook,

pushed

fixed

income

into

negative

territory

but

it

slightly

outperformed

global

equities

on

the

year.

Value

of

a

$10,000

Investment*

October

31,

2013

-

December

31,

2022

1-Year

5-Year

Since

Inception

Inception

Date

Extended

Performance

Inception

Date***

Class

2

Shares

-15.12%

4.70%

5.87%

10/31/13

–

Class

3

Shares

-15.17%

4.54%

5.70%

12/9/20

10/31/13

^The

Fund

uses

a

blended

benchmark,

Diversified

Growth

Managed

Volatility

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Growth

Managed

Volatility

Custom

Index

is

composed

of

45%

S&P

500

Index,

35%

Bloomberg

U.S.

Aggregate

Bond

Index,

10%

MSCI

EAFE

Index

NTR,

5%

S&P

MidCap

400

Index,

and

5%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

12

Diversified

Growth

Volatility

Control

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

capital

appreciation,

while

seeking

to

control

volatility.

The

fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

exchange-traded

funds

(“ETFs”)

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-Traded

Funds

and

other

fund

complexes

(collectively,

the

"underlying

funds").

It

also

invests

in

cash

and

cash

equivalents

(as

investments

and/or

to

serve

as

margin

or

collateral

for

derivatives

positions)

and

derivative

instruments

(primarily

exchange-traded

futures).

These

products

utilized

futures

to

manage

equity

exposures,

reducing

risk

and

volatility

profiles

as

dictated

by

market

conditions

and

proprietary

volatility

signals.

Equity

markets

were

sharply

negative

in

2022.

The

reality

of

a

global

economic

slow-down,

ongoing

geopolitical

unrest,

and

aggressive

global

central

bank

policy

tightening

to

tame

inflation

weighed

on

global

markets.

U.S.

mid-cap

and

small-cap

equities

outperformed

large-

caps,

but

all

three

were

down

double-digits.

Developed

ex-U.S.

equities

experienced

similar

levels

of

decline.

Aggressive

policy

hikes

by

the

Fed,

along

with

a

deteriorating

economic

outlook,

pushed

fixed

income

into

negative

territory

but

it

slightly

outperformed

global

equities

on

the

year.

Value

of

a

$10,000

Investment*

March

30,

2017

-

December

31,

2022

1-Year

5-Year

Since

Inception

Inception

Date

Extended

Performance

Inception

Date***

Class

2

Shares

-13.82%

3.71%

4.89%

3/30/17

–

Class

3

Shares

-13.97%

3.56%

4.74%

12/9/20

3/30/17

^The

Fund

uses

a

blended

benchmark,

Diversified

Growth

Volatility

Control

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Growth

Volatility

Control

Custom

Index

is

composed

of

45%

S&P

500

Index,

35%

Bloomberg

U.S.

Aggregate

Bond

Index,

10%

MSCI

EAFE

Index

NTR,

5%

S&P

MidCap

400

Index,

and

5%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

13

Diversified

Income

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

a

high

level

of

total

return

(consisting

of

reinvestment

of

income

with

some

capital

appreciation).

The fund

operates

as

a

fund

of

funds

and

invests

in

funds

and

exchange-traded

funds

("ETFs")

of

Principal

Funds,

Inc.,

PVC,

Principal

Exchange-

Traded

Funds,

and

other

fund

complexes

(collectively,

the

"underlying

funds").

It

generally

allocates

approximately

35%

of

its

assets

to

equity

index

underlying

funds

to

gain

broad

market

capitalization

exposure

to

both

U.S.

and

non-U.S.

investments

and

approximately

65%

to

fixed-income

index

underlying

funds

for

intermediate

duration

fixed-income

exposure.

U.S.

large-cap

equity

was

the

best

performing

underlying

holding

driven

by

strong

earnings

growth.

U.S.

small-caps

lagged

large-caps

but

still

outperformed

U.S.

mid-cap

equities.

Abroad,

non-U.S.

developed

equities

lagged

U.S.

equities

but

still

outperformed

fixed

income

by

a

broad

margin

for

the

year.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date***

Class

2

Shares

-14.54%

2.72%

4.28%

5/15/12

–

Class

3

Shares

-14.73%

2.54%

4.11%

12/9/20

5/15/12

^The

Fund

uses

a

blended

benchmark,

Diversified

Income

Custom

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Income

Custom

Index

is

composed

of

65%

Bloomberg

U.S.

Aggregate

Bond

Index,

25%

S&P

500

Index,

4%

MSCI

EAFE

Index

NTR,

3%

S&P

MidCap

400

Index,

and

3%

S&P

SmallCap

600

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

2

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

14

Diversified

International

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

The

fund

invests

primarily

in

foreign

equity

securities.

It

has

no

limitation

on

the

percentage

of

assets

that

are

invested

in

any

one

country

or

denominated

in

any

one

currency,

but

the

fund

typically

invests

in

foreign

securities

of

at

least

20

countries.

Primary

consideration

is

given

to

securities

of

issuers

of

developed

areas

(for

example,

Japan,

Western

Europe,

Canada,

Australia,

Hong

Kong,

and

Singapore);

however,

the

fund

also

invests

in

emerging

market

securities.

The

fund

invests

in

equity

securities

regardless

of

market

capitalization

size

and

style

(growth

or

value).

Strong

stock

selection

was

witnessed

in

Denmark

and

Singapore,

as

well

as

in

the

communication

services

sector.

Top

performers

included

Novo

Nordisk,

AstraZeneca,

and

Equinor.

Novo

Nordisk,

a

Danish

pharmaceutical

company

specializing

in

treatments

for

diabetes

and

obesity,

continues

to

benefit

from

strong

demand

for

their

insulin

drugs.

AstraZeneca,

a

global

pharmaceutical

company

focusing

on

oncology,

cardiovascular,

and

respiratory

drugs,

saw

benefits

from

their

quality

product

mix

and

a

strong

drug

pipeline.

Equinor,

a

Norwegian

oil

exploration

and

production

company,

capitalized

on

tightening

in

the

European

gas

market

because

of

the

war

in

Ukraine.

TCS

Group

Holding,

Brookfield

Corporation,

and

Lonza

Group

led

underperformance

during

the

year.

TCS

Group,

one

of

the

largest

online

banks

in

Russia,

was

down

due

to

sanctions

from

the

war

in

Ukraine.

We

have

exited

the

position.

Brookfield

Corporation,

a

global

alternative

asset

management

company,

experienced

weakness

as

their

REIT

assets

lagged

the

market

due

to

the

raising

rates.

However,

current

estimates

place

the

company

at

a

discount

to

forward

NAV

after

a

recent

spin-off

of

the

asset

management

business

which

should

provide

favorable

upside.

Lonza

Group,

a

pharmaceutical

manufacturer,

was

down

after

a

contract

cancellation

in

biologics

and

overhead

costs

lowering

margins

in

the

near

term

from

underutilized

capacity.

However,

the

company

is

positioned

to

capitalize

on

demand

for

high

quality

drug

manufacturers

as

biologic

volumes

continue

to

increase.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-20.00%

0.63%

4.32%

5/2/94

15

Equity

Income

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

current

income

and

long-term

growth

of

income

and

capital.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

dividend-paying

equity

securities

at

the

time

of

purchase.

It

usually

invests

in

equity

securities

of

companies

with

large

and

medium

market

capitalizations.

The

fund

invests

in

value

equity

securities,

an

investment

strategy

that

emphasizes

buying

equity

securities

that

appear

to

be

undervalued.

Marathon

Petroleum

Corporation

(MPC)

reported

strong

results

driven

by

record

refining

margins

and

raised

its

dividend

29%

in

addition

to

buying

back

approximately

30%

of

outstanding

shares.

Merck

&

Co.,

Inc.

(MRK)

contributed

to

relative

performance

as

the

company’s

Keytruda

drug

saw

sales

increase

+26%

year-over-year.

In

addition,

a

study

of

Keytruda

in

combination

with

a

personalized

cancer

vaccine

saw

positive

phase

2

results.

EOG

Resources

Incorporated

(EOG),

a

premier

E&P

company,

moved

higher

with

the

energy

sector

and

continues

to

generate

healthy

free

cash

flows.

EOG

has

increased

its

base

dividend

10%

and

paid

$5.80

in

special

dividends

over

the

past

year

as

the

company

targets

returning

a

minimum

of

60%

of

free

cash

flows

to

its

shareholders.

Not

owning

Exxon

Mobil

Corporation

(XOM)

detracted

from

relative

performance

as

the

energy

sector

moved

higher.

KKR

&

Co.

Inc.

(KKR),

a

leading

alternatives

manager

and

top

contributor

to

the

strategy

in

2021;

detracted

from

relative

performance

as

high

interest

rates

weighed

on

the

company.

First

Republic

Bank

(FRC)

detracted

from

relative

results

as

FRC

saw

its

net

interest

margin

decline.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date***

Class

1

Shares

-10.50%

7.42%

10.70%

4/28/98

–

Class

2

Shares

-10.72%

7.15%

10.43%

5/1/01

–

Class

3

Shares

-10.86%

7.00%

10.28%

12/9/20

4/28/98

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

1

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

16

Global

Emerging

Markets

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

emerging

market

companies

at

the

time

of

purchase.

The

adviser

considers

a

security

to

be

tied

economically

to

an

emerging

market

(an

"emerging

market

security")

if

the

issuer

of

the

security

has

its

principal

place

of

business

or

principal

office

in

an

emerging

market,

has

its

principal

securities

trading

market

in

an

emerging

market,

or

derives

a

majority

of

its

revenue

from

emerging

markets.

All

regions

underperformed

over

the

last

twelve

months,

but

we

had

notable

gains

in

Mexico,

South

Korea,

and

South

Africa.

Outperformance

in

Mexico

was

driven

by

an

overweight

position

to

the

financials

sector

and

our

consumer

staples

holding,

Arca

Continental,

up

32.4%.

South

Korea

was

led

by

an

underweight

position

to

the

communication

services

sector,

down

53.4%,

and

our

energy

holding,

GTT,

up

16.9%.

Gains

in

South

Africa

were

attributable

to

our

consumer

discretionary

holdings,

Naspers,

and

an

overweight

position

to

materials.

From

a

sector

standpoint,

consumer

staples

and

energy

were

the

top

performers

where

stock

selection

drove

gains.

The

top

contributors

during

the

period

were

overweight

positions

to

GTT,

up

16.9%,

AKR

Corporindo,

up

63.1%,

Naspers,

up

61.1%,

as

well

as

no

exposure

to

Gazprom,

down

100.0%,

and

NIO,

down

69.2%

The

EMEA

region

was

the

worst

performer

over

the

last

twelve

months

where

we

were

hurt

by

our

underweight

to

the

energy

producing

nations,

namely

Saudi

Arabia.

We

were

also

hurt

by

negative

stock

selection

in

China,

led

by

financials,

utilities,

and

healthcare.

Taiwan

was

also

another

source

of

underperformance,

entirely

led

by

losses

in

technology.

We

were

hurt

by

both

our

overweight

position

and

negative

stock

selection.

Financials,

information

technology,

and

utilities

were

the

worst

performing

sectors

during

the

period.

Negative

stock

selection

in

banks

drove

the

underperformance

in

financials,

our

semiconductor

exposure

led

losses

in

technology,

and

utilities

was

mostly

driven

by

our

China

exposure.

Notable

detractors

were

our

overweight

positions

to

Sberbank,

down

100.0%,

TCS

Group,

down

100.0%,

Vale,

down

31.4%,

Lukoil,

down

100.0%,

and

Meituan,

down

42.5%.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-22.66%

-2.94%

0.45%

10/24/00

17

Government

&

High

Quality

Bond

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

a

high

level

of

current

income

consistent

with

safety

and

liquidity.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

debt

securities

issued

by

the

U.S.

government,

its

agencies

or

instrumentalities

or

debt

securities

that

are

rated,

at

the

time

of

purchase,

AAA

by

S&P

Global

Ratings

or

Aaa

by

Moody's.

It

maintains

an

average

portfolio

duration

that

is

within

50%

of

the

duration

of

the

Bloomberg

Fixed-Rate

MBS

Index.

Financial

markets

were

generally

in

broad

retreat

over

the

year

as

investors

weighed

the

potential

economic

fallout

from

increasingly

aggressive

central

bank

efforts

to

reduce

multi-decade

high

inflation.

Persistently

high

inflation

prints

caused

a

substantial

increase

in

Treasury

rates

while

the

Federal

Reserve

(Fed)

raised

the

Fed

Funds

rate

by

0.75%

at

four

of

last

five

meetings

and

while

ending

the

year

with

a

0.50%

increase.

Increased

uncertainty

regarding

the

Fed’s

terminal

rate

resulted

in

increased

interest

rate

volatility

while

the

Fed

is

no

longer

re-investing

MBS

paydowns

allowing

the

balance

sheet

to

shrink

on

a

monthly

basis.

The

combination

of

these

factors

led

to

one

of

the

most

volatile

periods

in

the

Bloomberg

U.S.

Agency

Fixed

Rate

MBS

Index

history

as

the

index

posted

both

its

best

(July

2022)

and

two

of

the

worst

months

(August/September

2022)

of

excess

returns

in

the

history

of

the

index.

Security

selection/coupon

allocation

was

the

primary

contributor

to

performance

for

the

year

as

the

fund

maintained

an

underweight

position

to

the

lowest

coupons

within

the

Bloomberg

U.S.

Agency

Fixed

Rate

MBS

Index

(i.e.

Conventional

and

GNMA

30yr

1.5%/2%

and

Conventional

15yr

2%)

which

contributed

to

performance.

The

fund

maintained

an

underweight

position

to

the

Conventional

20yr

sector

which

contributed

to

performance.

Further,

the

fund’s

out-of-index

allocation

to

agency

collateralized

mortgage

obligations

(agency

CMO)

also

outperformed

the

benchmark

contributing

to

fund

performance.

Security

selection

and

an

overweight

position

within

the

Conventional

30-year

4%,

4.5s

and

5%

coupons

detracted

from

performance

in

the

year

as

specified

pool

pay-ups

remained

under

pressure.

These

pay-ups

were

not

measured

within

index

pricing

methodology

for

the

majority

of

the

year

but

were

incorporated

into

index

pricing

methodology

in

the

fourth

quarter

of

2022.

Further,

the

fund’s

out-of-index

allocations

to

agency

commercial

mortgage-backed

securities

(ACMBS)

and

a

long-dated

U.S.

Treasury

also

detracted

from

performance.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-11.81%

-0.78%

0.45%

5/6/93

18

LargeCap

Growth

Account

I

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisors:

Brown

Advisory,

LLC,

and

T.

Rowe

Price

Associates,

Inc.

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

with

large

market

capitalizations

at

the

time

of

purchase.

For

this

fund,

companies

with

large

market

capitalizations

are

those

with

market

capitalizations

within

the

range

of

companies

comprising

the

Russell

1000

Growth

Index.

The

fund

is

non-diversified.

Brown’s

performance

was

helped

by

positive

sector

positioning,

especially

within

the

healthcare,

consumer

staples,

and

consumer

discretionary

sectors.

Stock

selection

was

also

positive

in

the

industrials

sector.

T.

Rowe’s

performance

was

helped

by

positive

stock

selection

in

the

healthcare

sector.

Over

the

one-year

period,

Brown

and

T.

Rowe

both

underperformed

the

index

by

a

wide

margin.

Brown

underperformed

the

index

due

to

poor

stock

selection

in

the

information

technology

and

healthcare

sectors.

T.

Rowe

underperformed

the

index

due

to

poor

stock

selection

within

the

information

technology

and

consumer

discretionary

sectors.

Sector

positioning

was

also

detractor

due

to

an

overweight

to

the

communication

services

sector.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-34.16%

8.85%

12.67%

6/1/94

19

LargeCap

S&P

500

Index

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

that

compose

the

S&P

500

Index

at

the

time

of

purchase.

The

index

is

designed

to

represent

U.S.

equities

with

risk/return

characteristics

of

the

large

cap

universe.

During

the

12-month

period

ending

in

December

2022,

the

Principal

LargeCap

S&P

500

Index

Fund

was

in

line

with

the

S&P

500

index.

It

uses

an

indexing

strategy

and

does

not

attempt

to

manage

market

volatility,

use

defensive

strategies

or

reduce

the

effect

of

any

long-term

periods

of

negative

stock

market

performance.

Two

of

the

eleven

economic

sectors

in

the

index

posted

positive

returns

during

the

period

with

the

energy

and

utility

sectors

providing

the

best

return.

Exxon

Mobil,

ConocoPhillips,

and

Chevron

contributed

to

fund

performance

for

the

12-month

period

ending

December.

The

communication

services

and

consumer

discretionary

sectors

recorded

the

worst

returns

during

the

period.

Tesla,

Meta

Platforms,

and

PayPal

Holdings

detracted

from

fund

performance

for

the

12-month

period

ending

in

December.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date***

Class

1

Shares

-18.33%

9.14%

12.25%

5/3/99

–

Class

2

Shares

-18.53%

8.86%

11.97%

5/1/15

5/3/99

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

1

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

20

LargeCap

S&P

500

Managed

Volatility

Index

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisor:

Spectrum

Asset

Management,

Inc.

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital,

with

an

emphasis

on

managing

volatility.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

that

compose

the

S&P

500

Index

at

the

time

of

each

purchase.

The

index

is

designed

to

represent

U.S.

equities

with

risk/return

characteristics

of

the

large

cap

universe,

which

include

growth

and

value

stocks.

During

the

12-month

period

ending

in

December

2022,

the

Principal

LargeCap

S&P

500

Managed

Volatility

Account

was

in

line

with

the

S&P

500

index.

It

uses

an

indexing

strategy

and

does

not

attempt

to

manage

market

volatility,

use

defensive

strategies

or

reduce

the

effect

of

any

long-term

periods

of

negative

stock

market

performance.

Two

of

the

eleven

economic

sectors

in

the

index

posted

positive

returns

during

the

period

with

the

energy

and

utility

sectors

providing

the

best

return.

Exxon

Mobil,

ConocoPhillips,

and

Chevron

contributed

to

fund

performance

for

the

12-month

period

ending

December.

The

communication

services

and

consumer

discretionary

sectors

recorded

the

worst

returns

during

the

period.

Tesla,

Meta

Platforms,

and

PayPal

Holdings

detracted

from

fund

performance

for

the

12-month

period

ending

in

December.

Value

of

a

$10,000

Investment*

October

31,

2013

-

December

31,

2022

1-Year

5-Year

Since

Inception

Inception

Date

Class

1

Shares

-16.95%

8.59%

9.78%

10/31/13

21

MidCap

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

with

medium

market

capitalizations

at

the

time

of

purchase.

For

this

fund,

companies

with

medium

market

capitalizations

are

those

with

market

capitalizations

within

the

range

of

companies

comprising

the

Russell

Midcap

Index.

Over

its

fiscal

year,

company

selection

and

allocation

in

the

Industrials

sector

contributed

to

relative

performance

in

the

MidCap

Account.

The

largest

contributor

to

performance

was

O’Reilly

Automotive,

a

leading

auto

parts

aftermarket

retailer,

serving

both

consumers

who

repair

their

own

vehicles

and

professional

mechanics

through

their

more

than

5,000

stores.

The

next

largest

contributor

was

Arch

Capital

Group,

a

provider

of

mortgage

insurance,

reinsurance,

and

specialty

insurance.

Arch’s

owner-operator

management

team

focuses

on

long-term

returns

through

cycles,

with

a

willingness

to

give

up

some

return

during

good

times

to

protect

their

downside

in

challenging

environments.

The

third

largest

contributor

was

CoStar

Group,

commercial

real

estate’s

leading

provider

of

information,

analytics

and

online

marketplaces.

Started

over

35

years

ago

by

current

CEO

Andy

Florance,

CoStar

has

grown

to

be

an

essential

part

of

the

real

estate

ecosystem

and

is

sometimes

called

the

“Bloomberg

for

commercial

real

estate”.

Sector

allocation

made

up

the

majority

of

the

negative

impact

on

the

MidCap

Account’s

relative

performance,

in

large

part

due

to

the

portfolio

having

zero

weight

in

the

Energy

sector

–

which

was

the

best

performing

sector

up

over

50%.

The

largest

detractor

from

the

MidCap

Account’s

performance

this

year

was

CarMax.

CarMax

is

the

largest

used

car

retailer

in

the

U.S.

with

more

than

200

locations.

CarMax

purchases,

reconditions,

buys

&

sells

used

vehicles,

operates

wholesale

auctions

on

their

store

lots,

and

provides

financing

to

their

used

vehicle

customers

through

CarMax

Auto

Finance.

The

next

largest

detractor

was

Brookfield

Corporation

(previously

Brookfield

Asset

Management).

Brookfield

Corporation

is

a

global

investor

and

asset

manager,

focused

on

real

estate,

infrastructure,

renewable

power,

private

equity

assets

and

venture

capital.

Shares

detracted

from

performance

over

the

quarter,

however,

the

company

continues

to

have

both

investment

and

fundraising

success.

The

third

largest

detractor

during

the

year

was

KKR

&

Co.

KKR

is

a

global

asset

management

firm

with

leading

capabilities

in

private

equity,

credit,

and

real

assets.

Their

terrific

investment

track

record

has

enabled

them

to

continually

raise

larger

funds,

which

are

frequently

oversubscribed.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-22.98%

8.88%

12.54%

12/18/87

Class

2

Shares

-23.16%

8.61%

12.26%

9/9/09

22

Principal

Capital

Appreciation

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

growth

of

capital.

The

fund

invests

primarily

in

equity

securities

of

companies

with

any

market

capitalization,

but

it

has

a

greater

exposure

to

large

market

capitalization

companies

than

small

or

medium

market

capitalization

companies.

Those

managing

the

fund's

investments

seek

to

invest

in

securities

of

businesses

that

they

believe

are

trading

at

a

discount

to

their

private

market

value

(i.e.,

the

value

of

the

business

if

it

was

sold),

have

a

competitive

advantage,

and/or

that

have

barriers

to

entry

in

their

respective

industries.

Chevron

Corporation

(CVX)

contributed

to

relative

results

as

the

company

benefited

from

resurgent

energy

markets.

Not

owning

Tesla

Inc

(TSLA)

contributed

to

relative

results.

EOG

Resources

Incorporated

(EOG),

a

premier

E&P

company,

moved

higher

with

the

energy

sector

and

continues

to

generate

healthy

free

cash

flows.

Not

owning

Exxon

Mobil

Corporation

(XOM)

detracted

from

relative

performance

as

the

energy

sector

moved

higher.

PayPal

Holdings,

Inc.

(PYPL)

lagged

as

management

tapered

growth

expectations.

Adobe

Incorporated

(ADBE)

detracted

from

relative

results

as

markets

reacted

negatively

to

ADBE’s

purchase

of

Figma.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-16.42%

10.17%

12.54%

4/28/98

Class

2

Shares

-16.62%

9.89%

12.26%

11/6/01

23

Principal

LifeTime

2010

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

total

return

consisting

of

long-term

growth

of

capital

and

current

income.

The

fund

operates

as

a

"target

date

fund"

that

invests

according

to

an

asset

allocation

strategy

designed

for

investors

having

a

retirement

investment

goal

close

to

the

year

in

the

fund's

name.

The

fund's

asset

allocation

will

become

more

conservative

over

time

as

investment

goals

near

(for

example,

retirement,

which

is

assumed

to

begin

at

age

65)

and

investors

become

more

risk-averse.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-13.20%

2.36%

4.22%

8/30/04

24

Principal

LifeTime

2020

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

total

return

consisting

of

long-term

growth

of

capital

and

current

income.

The

fund

operates

as

a

"target

date

fund"

that

invests

according

to

an

asset

allocation

strategy

designed

for

investors

having

a

retirement

investment

goal

close

to

the

year

in

the

fund's

name.

The

fund's

asset

allocation

will

become

more

conservative

over

time

as

investment

goals

near

(for

example,

retirement,

which

is

assumed

to

begin

at

age

65)

and

investors

become

more

risk-averse.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-14.38%

3.35%

5.69%

8/30/04

25

Principal

LifeTime

2030

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

total

return

consisting

of

long-term

growth

of

capital

and

current

income.

The

fund

operates

as

a

"target

date

fund"

that

invests

according

to

an

asset

allocation

strategy

designed

for

investors

having

a

retirement

investment

goal

close

to

the

year

in

the

fund's

name.

The

fund's

asset

allocation

will

become

more

conservative

over

time

as

investment

goals

near

(for

example,

retirement,

which

is

assumed

to

begin

at

age

65)

and

investors

become

more

risk-averse.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-16.84%

4.09%

6.68%

8/30/04

26

Principal

LifeTime

2040

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

total

return

consisting

of

long-term

growth

of

capital

and

current

income.

The

fund

operates

as

a

"target

date

fund"

that

invests

according

to

an

asset

allocation

strategy

designed

for

investors

having

a

retirement

investment

goal

close

to

the

year

in

the

fund's

name.

The

fund's

asset

allocation

will

become

more

conservative

over

time

as

investment

goals

near

(for

example,

retirement,

which

is

assumed

to

begin

at

age

65)

and

investors

become

more

risk-averse.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-18.10%

4.74%

7.53%

8/30/04

27

Principal

LifeTime

2050

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

total

return

consisting

of

long-term

growth

of

capital

and

current

income.

The

fund

operates

as

a

"target

date

fund"

that

invests

according

to

an

asset

allocation

strategy

designed

for

investors

having

a

retirement

investment

goal

close

to

the

year

in

the

fund's

name.

The

fund's

asset

allocation

will

become

more

conservative

over

time

as

investment

goals

near

(for

example,

retirement,

which

is

assumed

to

begin

at

age

65)

and

investors

become

more

risk-averse.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-18.81%

5.06%

7.98%

8/30/04

28

Principal

LifeTime

2060

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

total

return

consisting

of

long-term

growth

of

capital

and

current

income.

The

fund

operates

as

a

"target

date

fund"

that

invests

according

to

an

asset

allocation

strategy

designed

for

investors

having

a

retirement

investment

goal

close

to

the

year

in

the

fund's

name.

The

fund's

asset

allocation

will

become

more

conservative

over

time

as

investment

goals

near

(for

example,

retirement,

which

is

assumed

to

begin

at

age

65)

and

investors

become

more

risk-averse.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

May

1,

2013

-

December

31,

2022

1-Year

5-Year

Since

Inception

Inception

Date

Class

1

Shares

-18.78%

5.22%

7.58%

5/1/13

29

Principal

LifeTime

Strategic

Income

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

current

income,

and

as

a

secondary

objective,

capital

appreciation.

The

fund

invests

according

to

an

asset

allocation

strategy

designed

for

investors

primarily

seeking

current

income

and

secondarily

capital

appreciation.

The

fund's

asset

allocation

is

designed

for

investors

who

are

approximately

15

years

beyond

the

normal

retirement

age

of

65.

The

fund

is

a

fund

of

funds

and

invests

in

underlying

funds

of

Principal

Funds,

Inc.

("PFI")

and

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC").

Active

management

within

the

U.S.

mid

and

small

cap

equity

space

contributed

for

the

year

as

the

MidCap

Value

I

and

SmallCap

Value

II

strategies

posted

strong

performance

relative

to

their

indices.

The

Core

Fixed

Income

and

High

Income

investment

options

outperformed

their

respective

indices

for

the

year.

The

inclusion

of

a

non-U.S.

value

strategy,

Overseas,

contributed

from

both

a

style

selection

and

manager

selection

perspective.

Active

management

was

the

largest

detractor

for

the

year.

Within

the

U.S.

largecap

equity

space,

LargeCap

Growth

I,

Blue

Chip,

and

Equity

Income

lagged

their

indices.

Within

non-U.S.

equity,

Diversified

International,

International

SmallCap

and

Origin

Emerging

Markets

underperformed

their

indices.

Asset

class

positioning

detracted

from

performance

for

the

year

driven

by

an

underweight

to

fixed

income

and

overweight

to

U.S.

equity.

Style

selection

detracted

across

both

U.S.

equity

and

fixed

income

asset

classes

for

the

year.

The

Russell

indices

underperformed

the

S&P

indices

while

the

short-term

income

exposure

lagged

the

S&P

treasury

bond

exposure

due

to

its

higher

duration

profile.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-13.09%

1.80%

3.09%

8/30/04

30

Real

Estate

Securities

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisor:

Principal

Real

Estate

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

generate

a

total

return.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

principally

engaged

in

the

real

estate

industry

at

the

time

of

purchase.

A

real

estate

company

has

at

least

50%

of

its

assets,

income

or

profits

derived

from

products

or

services

related

to

the

real

estate

industry.

It

is

non-diversified.

An

underweight

to

weakness

in

data

centers

on

power

cost

and

rising

rate

pressures

was

beneficial.

An

underweight

to

traditional

office

contributed,

with

the

sector

underperforming

due

to

sluggish

return

to

office

momentum,

poor

leasing

activity

and

negative

earnings

revisions.

Elevated

cash

holdings

in

a

declining

market

was

also

beneficial.

An

overweight

to

single

family

rental

detracted,

with

the

sector

underperforming

from

whistleblower

noise,

regulatory

concerns,

increasing

bad

debt,

and

surprise

higher

real

estate

taxes.

An

underweight

to

net

lease

detracted,

as

investors

sought

safety

in

the

sector

due

to

recession

concerns.

Not

holding

a

document

storage

company

detracted,

with

the

company

outperforming

from

strong

leasing

numbers

and

successful

implementation

of

higher

pricing.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-25.41%

4.93%

7.79%

5/1/98

Class

2

Shares

-25.58%

4.67%

7.53%

1/8/07

31

SAM

Balanced

Portfolio

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

as

high

a

level

of

total

return

(consisting

of

reinvested

income

and

capital

appreciation)

as

is

consistent

with

reasonable

risk.

The

fund

operates

as

funds

of

funds

and

invests

principally

in

funds

and

exchange-traded

funds

("ETFs")

of

Principal

Funds,

Inc.,

PVC,

and

Principal

Exchange-Traded

Funds

("underlying

funds").

It

generally

invests

between

40%

and

80%

of

its

assets

in

equity

funds,

and

less

than

30%

in

any

one

equity

fund.

The

portfolio's

allocation

in

U.S.

large

cap

value

equities,

which

outperformed

their

growth

counterparts,

was

the

largest

positive

contributor

to

performance

for

the

period.

In

addition,

the

portfolio's

allocation

to

real

assets

aided

performance

for

the

period.

Lastly,

the

portfolio's

allocation

to

U.S.

short-term

investment

grade

bonds,

which

helped

in

the

risk-off

environment,

positively

contributed

to

performance

for

the

period.

The

portfolio's

allocation

in

U.S.

large

cap

growth

equities,

which

underperformed

their

value

counterparts,

was

the

largest

detractor

to

performance

for

the

period.

In

addition,

relative

to

the

benchmark,

the

portfolio's

tactical

allocation

of

underweight

to

equity,

underweight

to

fixed

income,

and

overweight

to

alternative

&

specialty

securities

hindered

performance

for

the

period.

Lastly,

security

selection

in

emerging

market

equities

negatively

contributed

to

performance

for

the

period.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-16.15%

3.88%

6.38%

6/3/97

Class

2

Shares

-16.29%

3.62%

6.11%

11/6/01

^The

Fund

uses

a

blended

benchmark,

SAM

Balanced

Blended

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

SAM

Balanced

Blended

Index

is

composed

of

45%

Russell

3000

Index,

40%

Bloomberg

U.S.

Aggregate

Bond

Index,

and

15%

MSCI

EAFE

Index

NTR.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

32

SAM

Conservative

Balanced

Portfolio

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

a

high

level

of

total

return

(consisting

of

reinvestment

of

income

and

capital

appreciation),

consistent

with

a

moderate

degree

of

principal

risk.

The

fund

operates

as

a

fund

of

funds.

It

generally

invests

between

40%

and

80%

of

its

assets

in

fixed-

income

funds,

and

less

than

40%

in

any

one

fixed-income

fund.

The

fund

generally

invests

between

20%

and

60%

of

its

assets

in

equity

funds,

and

less

than

30%

in

any

one

equity

fund.

It

generally

invests

less

than

20%

of

its

assets

in

specialty

funds,

and

less

than

20%

in

any

one

specialty

fund.

The

portfolio's

allocation

in

U.S.

large

cap

value

equities,

which

outperformed

their

growth

counterparts,

was

the

largest

positive

contributor

to

performance

for

the

period.

In

addition,

the

portfolio's

allocation

to

U.S.

short-term

investment

grade

bonds,

which

helped

in

the

risk-off

environment,

aided

performance

for

the

period.

Lastly,

the

portfolio's

allocation

to

real

assets

positively

contributed

to

performance

for

the

period.

The

portfolio's

allocation

in

U.S.

large

cap

growth

equities,

which

underperformed

their

value

counterparts,

was

the

largest

detractor

to

performance

for

the

period.

In

addition,

security

selection

in

emerging

market

equities

hindered

performance

for

the

period.

Lastly,

security

selection

in

U.S.

large

cap

growth

equities

negatively

contributed

to

performance

for

the

period.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-14.45%

2.84%

4.83%

4/23/98

Class

2

Shares

-14.69%

2.58%

4.57%

11/6/01

^The

Fund

uses

a

blended

benchmark,

SAM

Conservative

Balanced

Blended

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

SAM

Conservative

Balanced

Blended

Index

is

composed

of

60%

Bloomberg

U.S.

Aggregate

Bond

Index,

30%

Russell

3000

Index,

and

10%

MSCI

EAFE

Index

NTR.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

33

SAM

Conservative

Growth

Portfolio

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

capital

appreciation.

The

fund

operates

as

a

fund

of

funds.

It

generally

invests

between

0%

and

40%

of

its

assets

in

fixed-income

funds,

and

less

than

30%

in

any

one

fixed-income

fund.

The

fund

generally

invests

between

60%

and

100%

of

its

assets

in

equity

funds,

and

less

than

40%

in

any

one

equity

fund.

It

generally

invests

less

than

20%

of

its

assets

in

specialty

funds,

and

less

than

20%

in

any

one

specialty

fund.

The

portfolio's

allocation

in

U.S.

large

cap

value

equities,

which

outperformed

their

growth

counterparts,

was

the

largest

positive

contributor

to

performance

for

the

period.

In

addition,

the

portfolio's

allocation

to

real

assets

aided

performance

for

the

period.

Lastly,

security

selection

in

U.S.

small

cap

equities

positively

contributed

to

performance

for

the

period.

The

portfolio's

allocation

in

U.S.

large

cap

growth

equities,

which

underperformed

their

value

counterparts,

was

the

largest

detractor

to

performance

for

the

period.

In

addition,

relative

to

the

benchmark,

the

portfolio's

tactical

allocation

of

underweight

to

equity,

underweight

to

fixed

income,

and

overweight

to

alternative

&

specialty

securities

hindered

performance

for

the

period.

Lastly,

security

selection

in

emerging

market

equities

negatively

contributed

to

performance

for

the

period.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-17.79%

4.84%

7.82%

6/3/97

Class

2

Shares

-17.97%

4.58%

7.55%

11/6/01

^The

Fund

uses

a

blended

benchmark,

SAM

Conservative

Growth

Blended

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

SAM

Conservative

Growth

Blended

Index

is

composed

of

60%

Russell

3000

Index,

20%

Bloomberg

U.S.

Aggregate

Bond

Index,

and

20%

MSCI

EAFE

Index

NTR.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

34

SAM

Flexible

Income

Portfolio

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

capital

appreciation.

The

fund

operates

as

a

fund

of

funds.

It

generally

invests

between

0%

and

40%

of

its

assets

in

fixed-income

funds,

and

less

than

30%

in

any

one

fixed-income

fund.

The

fund

generally

invests

between

60%

and

100%

of

its

assets

in

equity

funds,

and

less

than

40%

in

any

one

equity

fund.

It

generally

invests

less

than

20%

of

its

assets

in

specialty

funds,

and

less

than

20%

in

any

one

specialty

fund.

The

portfolio's

allocation

in

U.S.

large

cap

value

equities,

which

outperformed

their

growth

counterparts,

was

the

largest

positive

contributor

to

performance

for

the

period.

In

addition,

the

portfolio's

allocation

to

real

assets

aided

performance

for

the

period.

Lastly,

security

selection

in

U.S.

small

cap

equities

positively

contributed

to

performance

for

the

period.

The

portfolio's

allocation

in

U.S.

large

cap

growth

equities,

which

underperformed

their

value

counterparts,

was

the

largest

detractor

to

performance

for

the

period.

In

addition,

relative

to

the

benchmark,

the

portfolio's

tactical

allocation

of

underweight

to

equity,

underweight

to

fixed

income,

and

overweight

to

alternative

&

specialty

securities

hindered

performance

for

the

period.

Lastly,

security

selection

in

emerging

market

equities

negatively

contributed

to

performance

for

the

period.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-13.11%

2.04%

3.77%

9/9/97

Class

2

Shares

-13.37%

1.78%

3.50%

11/6/01

^

The

Fund

uses

a

blended

benchmark,

SAM

Flexible

Income

Blended

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

SAM

Flexible

Income

Blended

Index

is

composed

of

75%

Bloomberg

U.S.

Aggregate

Bond

Index,

20%

Russell

3000,

and

5%

MSCI

EAFE

Index

NTR.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

35

SAM

Strategic

Growth

Portfolio

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

long-term

capital

appreciation.

The

fund

operates

as

a

fund

of

funds.

It

generally

invests

between

75%

and

100%

of

its

assets

in

equity

funds,

and

less

than

50%

in

any

one

equity

fund.

The

fund

invests

less

than

20%

of

its

assets

in

specialty

funds,

and

less

than

20%

in

any

one

specialty

fund.

The

portfolio's

allocation

in

U.S.

large

cap

value

equities,

which

outperformed

their

growth

counterparts,

was

the

largest

positive

contributor

to

performance

for

the

period.

In

addition,

the

portfolio's

allocation

to

real

assets

aided

performance

for

the

period.

Lastly,

security

selection

in

U.S.

small

cap

equities

positively

contributed

to

performance

for

the

period.

The

portfolio's

allocation

in

U.S.

large

cap

growth

equities,

which

underperformed

their

value

counterparts,

was

the

largest

detractor

to

performance

for

the

period.

In

addition,

security

selection

in

U.S.

large

cap

growth

equities

hindered

performance

for

the

period.

Lastly,

security

selection

in

emerging

market

equities

negatively

contributed

to

performance

for

the

period.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-18.78%

5.53%

8.74%

6/3/97

Class

2

Shares

-18.98%

5.26%

8.47%

11/6/01

^The

Fund

uses

a

blended

benchmark,

SAM

Strategic

Growth

Blended

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

SAM

Strategic

Growth

Blended

Index

is

composed

of

70%

Russell

3000

Index,

25%

MSCI

EAFE

Index

NTR,

and

5%

Bloomberg

U.S.

Aggregate

Bond

Index.

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

36

Short-Term

Income

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

as

high

a

level

of

current

income

as

is

consistent

with

prudent

investment

management

and

stability

of

principal.

The

fund

invests

primarily

in

high

quality

short-term

bonds

and

other

fixed-income

securities

that,

at

the

time

of

purchase,

are

rated

BBB-

or

higher

by

S&P

Global

Ratings

("S&P

Global")

or

Baa3

or

higher

by

Moody's

Investors

Service,

Inc.

("Moody's")

or,

if

unrated,

in

the

opinion

of

those

selecting

such

investments,

are

of

comparable

quality.

It

invests

in

foreign

securities.

For

the

fiscal

year

2022

the

Short

Term

Income

Account

contributions

to

performance

were

led

by

underweights

to

supranationals

and

government

guarantee.

Overweights

to

electric

utilities,

basic

industry,

and

communications

round

out

the

top

contributors.

The

detractors

to

performance

were

out

of

benchmark

allocations

to

non-agency

commercial

mortgage

backed

securities

and

other

asset

backed

securities,

issue

selection

in

banking,

and

out

of

benchmark

allocations

to

student

loan

asset

backed

securities

and

auto

backed

asset

backed

securities.

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Class

1

Shares

-3.45%

0.94%

1.28%

1/12/94

37

SmallCap

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

with

small

market

capitalizations

at

the

time

of

purchase.

For

this

fund,

companies

with

small

market

capitalizations

are

those

with

market

capitalizations

within

the

range

of

companies

comprising

the

Russell

2000

Index.

ChampionX,

which

makes

products

to

improve

the

productivity

of

oil

wells,

reported

better-than-expected

results

driven

by

strong

demand

and

price

increases

across

its

global

footprint,

and

committed

to

return

60%

of

free

cash

flow

to

shareholders

going

forward.

PDC

Energy,

an

oil

and

gas

producer

operating

in

Colorado

and

Texas,

responded

well

amid

rising

oil

prices

and

news

of

an

attractive

acquisition.

Pioneer

Natural

Resources,

an

oil

and

gas

producer

operating

in

the

Midland

Basin

of

Texas,

responded

well

to

rising

oil

prices.

Signify

Health,

a

value-based

healthcare

provider

network

focused

on

improving

outcomes

and

lowering

costs,

performed

well

following

the

announcement

that

CVS

Health

will

acquire

the

company

at

a

significant

premium.

ExlService,

provides

outsourced

business

process

management

services.

The

company

reported

better-than-expected

results

driven

by

its

analytics

business.

Syneos

Health,

a

contract

research

organization

serving

the

biotechnology

and

pharmaceutical

industries,

underperformed

following

the

company

reporting

a

sharp

decline

in

new

business

bookings

amid

recent

executive

changes

and

staff

turnover.

Sonder

Holdings,

an

innovative

lodging

company

which

operates

a

network

of

short-term

rentals,

underperformed

following

weaker-than-expected

quarterly

financial

results

and

lowered

their

full-year

outlook.

SiTime,

a

provider

of

semiconductor

timing

devices,

lagged

after

announcing

that

the

rest

of

2022

would

see

weaker

demand

in

its

low-end

consumer

business

that

includes

end

markets

like

wearables,

cameras,

and

printers.

Digital

Ocean

provides

outsourced

cloud

computing

services

for

individual

developers,

startups,

and

small

businesses.

While

the

company

reported

better-than-expected

operating

results,

the

stock

still

underperformed

as

high-growth

companies

lagged

the

broader

market.

Beauty

Health,

an

aesthetics-focused

organization

led

by

its

flagship

offering,

HydraFacial,

underperformed

amid

concerns

that

higher

inflation

could

lead

to

a

pullback

in

discretionary

spending

by

consumers

Value

of

a

$10,000

Investment*

December

31,

2012

-

December

31,

2022

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date***

Class

1

Shares

-20.63%

5.75%

10.50%

5/1/98

–

Class

2

Shares

-20.88%

5.47%

10.22%

2/17/15

5/1/98

***Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

1

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

38

U.S.

LargeCap

Buffer

July

Account

Investment

Advisor:

Principal

Global

Investors,

LLC

Average

Annual

Total

Returns*

as

of

December

31,

2022

No

performance

information

is

shown

below

because

the

Fund

has

not

yet

had

a

calendar

year

of

performance.

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

Fund

seeks

to

provide

investors

with

returns

(before

fees

and

expenses)

based

on

the

S&P

500

Price

Return

Index

(the

“Index”),

while

seeking

to

provide

a

buffer

against

the

first

10%

(prior

to

taking

into

account

any

fees

and

expenses

of

the

Fund)

of

Index

losses,

over

a

twelve-month

period

beginning

on

July

1

and

ending

on

June

30.

The

Principal

Variable

Contract

(“PVC”)

U.S.

LargeCap

Buffer

portfolios

are

defined

outcome

investment

solutions

that

provide

limited

downside

protection,

full

upside

participation

up

to

10%,

and

partial

participation

on

any

gains

above

10%.

The

portfolio

uses

a

combination

of

ETFs

and

options

to

accomplish

this

objective.

The

out-of-the-money

put,

ETF

holdings,

and

out-of-the-money

call

contributed

to

performance.

The

at-the-money

put

detracted

from

performance.

Overall,

performance

since

launch

is

in

line

with

our

expectations.

Value

of

a

$10,000

Investment*

June

29,

2022

-

December

31,

2022

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

39

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Blue

Chip

Account

Bond

Market

Index

Account

Core

Plus

Bond

Account

Investment

in

securities--at

cost

..........................................................

$

9,955‌

$

2,563,793‌

$

222,473‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

194‌

$

65,730‌

$

2,395‌

Assets

Investment

in

securities--at

value 

..........................................................

$

8,588‌

$

2,268,826‌

(a)

$

200,177‌

(a)

Investment

in

affiliated

Funds--at

value

.....................................................

194‌

65,730‌

2,395‌

Cash

.........................................................................................

–‌

691‌

9‌

Deposits

with

counterparty

..................................................................

–‌

15‌

13‌

Receivables:

Dividends

and

interest

.................................................................

3‌

12,977‌

1,378‌

Fund

shares

sold

.......................................................................

14‌

186‌

79‌

Investment

securities

sold

.............................................................

5‌

31,935‌

234‌

Variation

margin

on

futures

...........................................................

–‌

–‌

7‌

Variation

margin

on

swaps

............................................................

–‌

–‌

10‌

Total

Assets  

8,804‌

2,380,360‌

204,302‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

3‌

282‌

77‌

Accrued

distribution

fees

....................................................................

2‌

–‌

–‌

Accrued

service

fees

........................................................................

1‌

–‌

–‌

Accrued

directors'

expenses

.................................................................

–‌

13‌

–‌

Accrued

professional

fees

...................................................................

5‌

1‌

4‌

Accrued

other

expenses

.....................................................................

1‌

15‌

5‌

Deposits

from

counterparty

.................................................................

–‌

153‌

–‌

Payables:

Fund

shares

redeemed

.................................................................

–‌

232‌

9‌

Investment

securities

purchased

......................................................

113‌

79,363‌

16,285‌

Variation

margin

on

futures

...........................................................

–‌

–‌

5‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

–‌

10,230‌

894‌

Total

Liabilities  

125‌

90,289‌

17,279‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

8,679‌

$

2,290,071‌

$

187,023‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

11,058‌

$

2,596,560‌

$

216,840‌

Total

distributable

earnings

(accumulated

loss)

.............................................

(

2,379‌

)

(

306,489‌

)

(

29,817‌

)

Total

Net

Assets 

$

8,679‌

$

2,290,071‌

$

187,023‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

200,000‌

300,000‌

400,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

N/A‌

$

2,290,071‌

$

187,023‌

Shares

Issued

and

Outstanding

........................................................

250,935‌

19,861‌

Net

Asset

Value

per

share

.............................................................

$

9

.13‌

$

9

.42‌

Class

3

:

Net

Assets

..........................................................................

$

8,679‌

N/A‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

986‌

Net

Asset

Value

per

share

.............................................................

$

8

.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.

December

31,

2022

40

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Diversified

Balanced

Account

Diversified

Balanced

Managed

Volatility

Account

Diversified

Balanced

Volatility

Control

Account

Investment

in

securities--at

cost

..........................................................

$

–‌

$

–‌

$

20,100‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

645,657‌

$

139,873‌

$

204,675‌

Assets

Investment

in

securities--at

value 

..........................................................

$

–‌

$

–‌

$

19,568‌

Investment

in

affiliated

Funds--at

value

.....................................................

749,112‌

141,435‌

187,664‌

Receivables:

Dividends

and

interest

.................................................................

–‌

–‌

54‌

Fund

shares

sold

.......................................................................

2‌

1‌

72‌

Investment

securities

sold

.............................................................

181‌

4‌

–‌

Total

Assets  

749,295‌

141,440‌

207,358‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

32‌

6‌

21‌

Accrued

distribution

fees

....................................................................

155‌

31‌

45‌

Accrued

directors'

expenses

.................................................................

4‌

1‌

1‌

Accrued

professional

fees

...................................................................

4‌

4‌

4‌

Accrued

other

expenses

.....................................................................

1‌

–‌

–‌

Payables:

Fund

shares

redeemed

.................................................................

184‌

5‌

–‌

Investment

securities

purchased

......................................................

–‌

–‌

57‌

Total

Liabilities  

380‌

47‌

128‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

748,915‌

$

141,393‌

$

207,230‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

587,459‌

$

131,563‌

$

220,737‌

Total

distributable

earnings

(accumulated

loss)

.............................................

161,456‌

9,830‌

(

13,507‌

)

Total

Net

Assets 

$

748,915‌

$

141,393‌

$

207,230‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

650,000‌

400,000‌

400,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

32,564‌

N/A‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

2,401‌

Net

Asset

Value

per

share

.............................................................

$

13

.57‌

Class

2

:

Net

Assets

..........................................................................

$

715,788‌

$

141,384‌

$

207,220‌

Shares

Issued

and

Outstanding

........................................................

52,605‌

12,854‌

19,671‌

Net

Asset

Value

per

share

.............................................................

$

13

.61‌

$

11

.00‌

$

10

.53‌

Class

3

:

Net

Assets

..........................................................................

$

563‌

$

9‌

$

10‌

Shares

Issued

and

Outstanding

........................................................

42‌

1‌

1‌

Net

Asset

Value

per

share

.............................................................

$

13

.45‌

$

10

.95‌

$

10

.51‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

41

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Diversified

Growth

Account

Diversified

Growth

Managed

Volatility

Account

Diversified

Growth

Volatility

Control

Account

Investment

in

securities--at

cost

..........................................................

$

–‌

$

–‌

$

75,646‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

2,525,296‌

$

278,505‌

$

1,199,885‌

Assets

Investment

in

securities--at

value 

..........................................................

$

–‌

$

–‌

$

73,903‌

Investment

in

affiliated

Funds--at

value

.....................................................

3,046,755‌

293,052‌

1,122,974‌

Receivables:

Dividends

and

interest

.................................................................

–‌

1‌

397‌

Fund

shares

sold

.......................................................................

255‌

–‌

–‌

Investment

securities

sold

.............................................................

51‌

95‌

201‌

Total

Assets  

3,047,061‌

293,148‌

1,197,475‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

132‌

13‌

123‌

Accrued

distribution

fees

....................................................................

660‌

64‌

257‌

Accrued

directors'

expenses

.................................................................

17‌

2‌

6‌

Accrued

professional

fees

...................................................................

4‌

4‌

4‌

Accrued

other

expenses

.....................................................................

5‌

–‌

2‌

Payables:

Fund

shares

redeemed

.................................................................

306‌

95‌

252‌

Total

Liabilities  

1,124‌

178‌

644‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

3,045,937‌

$

292,970‌

$

1,196,831‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

2,280,111‌

$

257,462‌

$

1,240,687‌

Total

distributable

earnings

(accumulated

loss)

.............................................

765,826‌

35,508‌

(

43,856‌

)

Total

Net

Assets 

$

3,045,937‌

$

292,970‌

$

1,196,831‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

500,000‌

400,000‌

400,000‌

Net

Asset

Value

Per

Share:

Class

2

:

Net

Assets

..........................................................................

$

3,045,729‌

$

292,960‌

$

1,196,821‌

Shares

Issued

and

Outstanding

........................................................

187,976‌

24,930‌

108,148‌

Net

Asset

Value

per

share

.............................................................

$

16

.20‌

$

11

.75‌

$

11

.07‌

Class

3

:

Net

Assets

..........................................................................

$

208‌

$

10‌

$

10‌

Shares

Issued

and

Outstanding

........................................................

13‌

1‌

1‌

Net

Asset

Value

per

share

.............................................................

$

16

.07‌

$

11

.70‌

$

11

.04‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

42

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Diversified

Income

Account

Diversified

International

Account

Equity

Income

Account

Investment

in

securities--at

cost

..........................................................

$

–‌

$

218,698‌

$

398,292‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

254,755‌

$

637‌

$

18,363‌

Foreign

currency--at

cost

..................................................................

$

–‌

$

33‌

$

–‌

Assets

Investment

in

securities--at

value 

..........................................................

$

–‌

$

239,676‌

(a)

$

673,648‌

(a)

Investment

in

affiliated

Funds--at

value

.....................................................

254,425‌

637‌

18,363‌

Foreign

currency--at

value

..................................................................

–‌

33‌

–‌

Receivables:

Dividends

and

interest

.................................................................

–‌

800‌

1,541‌

Fund

shares

sold

.......................................................................

209‌

31‌

80‌

Investment

securities

sold

.............................................................

–‌

398‌

–‌

Prepaid

expenses

............................................................................

–‌

4‌

–‌

Total

Assets  

254,634‌

241,579‌

693,632‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

11‌

174‌

277‌

Accrued

distribution

fees

....................................................................

55‌

–‌

12‌

Accrued

directors'

expenses

.................................................................

1‌

1‌

4‌

Accrued

foreign

tax

.........................................................................

–‌

114‌

–‌

Accrued

professional

fees

...................................................................

4‌

–‌

3‌

Accrued

other

expenses

.....................................................................

–‌

23‌

13‌

Payables:

Fund

shares

redeemed

.................................................................

–‌

15‌

330‌

Investment

securities

purchased

......................................................

209‌

289‌

–‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

–‌

4,242‌

10,426‌

Total

Liabilities  

280‌

4,858‌

11,065‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

254,354‌

$

236,721‌

$

682,567‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

240,730‌

$

218,312‌

$

360,133‌

Total

distributable

earnings

(accumulated

loss)

.............................................

13,624‌

18,409‌

322,434‌

Total

Net

Assets 

$

254,354‌

$

236,721‌

$

682,567‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

250,000‌

300,000‌

400,000‌

Net

Asset

Value

Per

Share:

Class

1:

Net

Assets

..........................................................................

N/A‌

$

236,721‌

$

625,764‌

Shares

Issued

and

Outstanding

........................................................

17,723‌

23,582‌

Net

Asset

Value

per

share

.............................................................

$

13.36‌

$

26.54‌

Class

2:

Net

Assets

..........................................................................

$

254,300‌

N/A‌

$

56,495‌

Shares

Issued

and

Outstanding

........................................................

21,199‌

2,157‌

Net

Asset

Value

per

share

.............................................................

$

12.00‌

$

26.19‌

Class

3:

Net

Assets

..........................................................................

$

54‌

N/A‌

$

308‌

Shares

Issued

and

Outstanding

........................................................

5‌

12‌

Net

Asset

Value

per

share

.............................................................

$

12.21‌

$

26.30‌

(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.

December

31,

2022

43

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Global

Emerging

Markets

Account

(a)

Government

&

High

Quality

Bond

Account

LargeCap

Growth

Account

I

Investment

in

securities--at

cost

..........................................................

$

64,715‌

$

165,152‌

$

375,168‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

2,443‌

$

5,397‌

$

11,974‌

Foreign

currency--at

cost

..................................................................

$

124‌

$

–‌

$

–‌

Assets

Investment

in

securities--at

value 

..........................................................

$

66,116‌

(b)

$

147,529‌

$

427,377‌

(b)

Investment

in

affiliated

Funds--at

value

.....................................................

2,443‌

5,397‌

11,974‌

Foreign

currency--at

value

..................................................................

124‌

–‌

–‌

Cash

.........................................................................................

9‌

–‌

–‌

Deposits

with

counterparty

..................................................................

–‌

299‌

95‌

Receivables:

Dividends

and

interest

.................................................................

171‌

406‌

109‌

Expense

reimbursement

from

Manager

...............................................

–‌

–‌

7‌

Foreign

tax

refund

.....................................................................

11‌

–‌

–‌

Fund

shares

sold

.......................................................................

4‌

6‌

54‌

Investment

securities

sold

.............................................................

–‌

–‌

524‌

Variation

margin

on

futures

...........................................................

–‌

10‌

–‌

Prepaid

expenses

............................................................................

2‌

–‌

–‌

Total

Assets  

68,880‌

153,647‌

440,140‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

58‌

59‌

272‌

Accrued

directors'

expenses

.................................................................

–‌

1‌

1‌

Accrued

foreign

tax

.........................................................................

314‌

–‌

–‌

Accrued

professional

fees

...................................................................

–‌

4‌

3‌

Accrued

other

expenses

.....................................................................

9‌

2‌

3‌

Payables:

Fund

shares

redeemed

.................................................................

28‌

11‌

204‌

Investment

securities

purchased

......................................................

104‌

15,206‌

107‌

Variation

margin

on

futures

...........................................................

–‌

18‌

5‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

352‌

–‌

52‌

Total

Liabilities  

865‌

15,301‌

647‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

68,015‌

$

138,346‌

$

439,493‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

69,681‌

$

171,416‌

$

365,628‌

Total

distributable

earnings

(accumulated

loss)

.............................................

(1,666‌)

(33,070‌)

73,865‌

Total

Net

Assets 

$

68,015‌

$

138,346‌

$

439,493‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

200,000‌

200,000‌

200,000‌

Net

Asset

Value

Per

Share:

Class

1:

Net

Assets

..........................................................................

$

68,015‌

$

138,346‌

$

439,493‌

Shares

Issued

and

Outstanding

........................................................

5,080‌

16,785‌

14,543‌

Net

Asset

Value

per

share

.............................................................

$

13.39‌

$

8.24‌

$

30.22‌

(a)

Effective

May

2,

2022,

International

Emerging

Markets

Account

changed

its

name

to

Global

Emerging

Markets

Account.

(b)

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.

December

31,

2022

44

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

LargeCap

S&P

500

Index

Account

LargeCap

S&P

500

Managed

Volatility

Index

Account

MidCap

Account

Investment

in

securities--at

cost

..........................................................

$

1,544,495‌

$

108,360‌

$

422,988‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

88,905‌

$

10,782‌

$

1,497‌

Assets

Investment

in

securities--at

value 

..........................................................

$

2,467,981‌

$

169,473‌

$

587,697‌

Investment

in

affiliated

Funds--at

value

.....................................................

88,905‌

10,782‌

1,497‌

Deposits

with

counterparty

..................................................................

–‌

1,408‌

–‌

Receivables:

Dividends

and

interest

.................................................................

2,294‌

168‌

144‌

Fund

shares

sold

.......................................................................

112‌

–‌

54‌

Investment

securities

sold

.............................................................

–‌

115‌

1,517‌

Total

Assets  

2,559,292‌

181,946‌

590,909‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

529‌

70‌

273‌

Accrued

distribution

fees

....................................................................

9‌

–‌

7‌

Accrued

directors'

expenses

.................................................................

14‌

1‌

3‌

Accrued

professional

fees

...................................................................

3‌

3‌

3‌

Accrued

other

expenses

.....................................................................

12‌

4‌

2‌

Cash

overdraft

...............................................................................

–‌

–‌

996‌

Payables:

Fund

shares

redeemed

.................................................................

189‌

44‌

81‌

Investment

securities

purchased

......................................................

–‌

–‌

1,773‌

Options

and

swaptions

contracts

written

 (premiums

received

$

0

,

$

1,018

and

$

0

)

...

–‌

661‌

–‌

Variation

margin

on

futures

...........................................................

235‌

8‌

–‌

Total

Liabilities  

991‌

791‌

3,138‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

2,558,301‌

$

181,155‌

$

587,771‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

1,499,941‌

$

120,415‌

$

408,080‌

Total

distributable

earnings

(accumulated

loss)

.............................................

1,058,360‌

60,740‌

179,691‌

Total

Net

Assets 

$

2,558,301‌

$

181,155‌

$

587,771‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

300,000‌

100,000‌

105,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

2,516,267‌

$

181,155‌

$

554,971‌

Shares

Issued

and

Outstanding

........................................................

137,960‌

13,048‌

10,829‌

Net

Asset

Value

per

share

.............................................................

$

18

.24‌

$

13

.88‌

$

51

.25‌

Class

2

:

Net

Assets

..........................................................................

$

42,034‌

N/A‌

$

32,800‌

Shares

Issued

and

Outstanding

........................................................

2,347‌

649‌

Net

Asset

Value

per

share

.............................................................

$

17

.91‌

$

50

.56‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

45

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

Capital

Appreciation

Account

Principal

LifeTime

2010

Account

Principal

LifeTime

2020

Account

Investment

in

securities--at

cost

..........................................................

$

86,080‌

$

–‌

$

–‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

1,401‌

$

36,486‌

$

159,804‌

Assets

Investment

in

securities--at

value 

..........................................................

$

149,588‌

(a)

$

–‌

$

–‌

Investment

in

affiliated

Funds--at

value

.....................................................

1,401‌

33,146‌

151,556‌

Receivables:

Dividends

and

interest

.................................................................

174‌

47‌

187‌

Fund

shares

sold

.......................................................................

62‌

22‌

172‌

Interfund

lending

......................................................................

3,100‌

–‌

–‌

Total

Assets  

154,325‌

33,215‌

151,915‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

83‌

–‌

–‌

Accrued

distribution

fees

....................................................................

7‌

–‌

–‌

Accrued

directors'

expenses

.................................................................

1‌

–‌

1‌

Accrued

professional

fees

...................................................................

3‌

4‌

4‌

Accrued

other

expenses

.....................................................................

2‌

–‌

–‌

Cash

overdraft

...............................................................................

10‌

–‌

–‌

Payables:

Fund

shares

redeemed

.................................................................

16‌

1‌

165‌

Investment

securities

purchased

......................................................

115‌

68‌

194‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

9‌

–‌

–‌

Total

Liabilities  

246‌

73‌

364‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

154,079‌

$

33,142‌

$

151,551‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

79,692‌

$

35,281‌

$

153,945‌

Total

distributable

earnings

(accumulated

loss)

.............................................

74,387‌

(

2,139‌

)

(

2,394‌

)

Total

Net

Assets 

$

154,079‌

$

33,142‌

$

151,551‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

200,000‌

100,000‌

200,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

121,010‌

$

33,142‌

$

151,551‌

Shares

Issued

and

Outstanding

........................................................

3,986‌

3,059‌

13,041‌

Net

Asset

Value

per

share

.............................................................

$

30

.36‌

$

10

.83‌

$

11

.62‌

Class

2

:

Net

Assets

..........................................................................

$

33,069‌

N/A‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

1,111‌

Net

Asset

Value

per

share

.............................................................

$

29

.78‌

(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.

December

31,

2022

46

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

LifeTime

2030

Account

Principal

LifeTime

2040

Account

Principal

LifeTime

2050

Account

Investment

in

affiliated

Funds--at

cost

....................................................

$

240,609‌

$

124,289‌

$

60,389‌

Assets

Investment

in

affiliated

Funds--at

value

.....................................................

$

227,669‌

$

118,059‌

$

56,835‌

Receivables:

Dividends

and

interest

.................................................................

223‌

50‌

4‌

Fund

shares

sold

.......................................................................

11‌

96‌

52‌

Investment

securities

sold

.............................................................

201‌

–‌

–‌

Total

Assets  

228,104‌

118,205‌

56,891‌

Liabilities

Accrued

directors'

expenses

.................................................................

1‌

–‌

–‌

Accrued

professional

fees

...................................................................

4‌

4‌

4‌

Payables:

Fund

shares

redeemed

.................................................................

212‌

64‌

7‌

Investment

securities

purchased

......................................................

223‌

82‌

50‌

Total

Liabilities  

440‌

150‌

61‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

227,664‌

$

118,055‌

$

56,830‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

231,310‌

$

119,161‌

$

57,869‌

Total

distributable

earnings

(accumulated

loss)

.............................................

(

3,646‌

)

(

1,106‌

)

(

1,039‌

)

Total

Net

Assets 

$

227,664‌

$

118,055‌

$

56,830‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

200,000‌

200,000‌

200,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

227,664‌

$

118,055‌

$

56,830‌

Shares

Issued

and

Outstanding

........................................................

19,456‌

8,091‌

4,071‌

Net

Asset

Value

per

share

.............................................................

$

11

.70‌

$

14

.59‌

$

13

.96‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

47

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

LifeTime

2060

Account

Principal

LifeTime

Strategic

Income

Account

Real

Estate

Securities

Account

Investment

in

securities--at

cost

..........................................................

$

–‌

$

–‌

$

122,416‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

16,600‌

$

26,955‌

$

1,325‌

Assets

Investment

in

securities--at

value 

..........................................................

$

–‌

$

–‌

$

132,266‌

Investment

in

affiliated

Funds--at

value

.....................................................

15,134‌

24,137‌

1,325‌

Receivables:

Dividends

and

interest

.................................................................

2‌

35‌

763‌

Fund

shares

sold

.......................................................................

20‌

10‌

50‌

Investment

securities

sold

.............................................................

–‌

–‌

119‌

Total

Assets  

15,156‌

24,182‌

134,523‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

–‌

–‌

91‌

Accrued

distribution

fees

....................................................................

–‌

–‌

2‌

Accrued

directors'

expenses

.................................................................

–‌

–‌

1‌

Accrued

professional

fees

...................................................................

4‌

4‌

3‌

Accrued

other

expenses

.....................................................................

–‌

–‌

1‌

Cash

overdraft

...............................................................................

–‌

–‌

97‌

Payables:

Fund

shares

redeemed

.................................................................

–‌

–‌

1‌

Investment

securities

purchased

......................................................

21‌

45‌

–‌

Total

Liabilities  

25‌

49‌

196‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

15,131‌

$

24,133‌

$

134,327‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

15,971‌

$

26,139‌

$

116,569‌

Total

distributable

earnings

(accumulated

loss)

.............................................

(

840‌

)

(

2,006‌

)

17,758‌

Total

Net

Assets 

$

15,131‌

$

24,133‌

$

134,327‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

100,000‌

100,000‌

300,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

15,131‌

$

24,133‌

$

124,969‌

Shares

Issued

and

Outstanding

........................................................

1,116‌

2,385‌

7,362‌

Net

Asset

Value

per

share

.............................................................

$

13

.56‌

$

10

.12‌

$

16

.97‌

Class

2

:

Net

Assets

..........................................................................

N/A‌

N/A‌

$

9,358‌

Shares

Issued

and

Outstanding

........................................................

550‌

Net

Asset

Value

per

share

.............................................................

$

17

.00‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

48

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

SAM

Balanced

Portfolio

SAM

Conservative

Balanced

Portfolio

SAM

Conservative

Growth

Portfolio

Investment

in

affiliated

Funds--at

cost

....................................................

$

551,741‌

$

165,940‌

$

329,885‌

Assets

Investment

in

affiliated

Funds--at

value

.....................................................

$

568,167‌

$

163,305‌

$

345,705‌

Receivables:

Dividends

and

interest

.................................................................

486‌

170‌

229‌

Fund

shares

sold

.......................................................................

150‌

6‌

46‌

Investment

securities

sold

.............................................................

177‌

12‌

–‌

Total

Assets  

568,980‌

163,493‌

345,980‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

113‌

33‌

69‌

Accrued

distribution

fees

....................................................................

28‌

6‌

34‌

Accrued

directors'

expenses

.................................................................

2‌

1‌

1‌

Accrued

professional

fees

...................................................................

4‌

4‌

4‌

Accrued

other

expenses

.....................................................................

1‌

–‌

1‌

Payables:

Fund

shares

redeemed

.................................................................

327‌

18‌

26‌

Investment

securities

purchased

......................................................

305‌

136‌

100‌

Total

Liabilities  

780‌

198‌

235‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

568,200‌

$

163,295‌

$

345,745‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

518,702‌

$

162,186‌

$

307,690‌

Total

distributable

earnings

(accumulated

loss)

.............................................

49,498‌

1,109‌

38,055‌

Total

Net

Assets 

$

568,200‌

$

163,295‌

$

345,745‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

300,000‌

200,000‌

200,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

438,565‌

$

134,379‌

$

190,273‌

Shares

Issued

and

Outstanding

........................................................

34,496‌

13,138‌

10,780‌

Net

Asset

Value

per

share

.............................................................

$

12

.71‌

$

10

.23‌

$

17

.65‌

Class

2

:

Net

Assets

..........................................................................

$

129,635‌

$

28,916‌

$

155,472‌

Shares

Issued

and

Outstanding

........................................................

10,371‌

2,877‌

8,983‌

Net

Asset

Value

per

share

.............................................................

$

12

.50‌

$

10

.05‌

$

17

.31‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

49

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

SAM

Flexible

Income

Portfolio

SAM

Strategic

Growth

Portfolio

Short-Term

Income

Account

Investment

in

securities--at

cost

..........................................................

$

–‌

$

–‌

$

139,419‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

150,957‌

$

327,171‌

$

755‌

Assets

Investment

in

securities--at

value 

..........................................................

$

–‌

$

–‌

$

132,763‌

Investment

in

affiliated

Funds--at

value

.....................................................

143,024‌

338,864‌

755‌

Cash

.........................................................................................

–‌

–‌

12‌

Deposits

with

counterparty

..................................................................

–‌

–‌

18‌

Receivables:

Dividends

and

interest

.................................................................

179‌

172‌

607‌

Fund

shares

sold

.......................................................................

7‌

45‌

30‌

Investment

securities

sold

.............................................................

5‌

–‌

–‌

Total

Assets  

143,215‌

339,081‌

134,185‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

29‌

68‌

51‌

Accrued

distribution

fees

....................................................................

7‌

36‌

–‌

Accrued

directors'

expenses

.................................................................

1‌

1‌

–‌

Accrued

professional

fees

...................................................................

4‌

4‌

4‌

Accrued

other

expenses

.....................................................................

–‌

1‌

3‌

Payables:

Fund

shares

redeemed

.................................................................

12‌

25‌

4‌

Investment

securities

purchased

......................................................

139‌

20‌

–‌

Variation

margin

on

futures

...........................................................

–‌

–‌

1‌

Total

Liabilities  

192‌

155‌

63‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

143,023‌

$

338,926‌

$

134,122‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

153,109‌

$

313,078‌

$

139,644‌

Total

distributable

earnings

(accumulated

loss)

.............................................

(

10,086‌

)

25,848‌

(

5,522‌

)

Total

Net

Assets 

$

143,023‌

$

338,926‌

$

134,122‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

200,000‌

200,000‌

400,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

108,390‌

$

174,041‌

$

134,122‌

Shares

Issued

and

Outstanding

........................................................

10,662‌

8,809‌

55,735‌

Net

Asset

Value

per

share

.............................................................

$

10

.17‌

$

19

.76‌

$

2

.41‌

Class

2

:

Net

Assets

..........................................................................

$

34,633‌

$

164,885‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

3,456‌

8,505‌

Net

Asset

Value

per

share

.............................................................

$

10

.02‌

$

19

.39‌

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

50

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

SmallCap

Account

U.S.

LargeCap

Buffer

January

Account

U.S.

LargeCap

Buffer

July

Account

Investment

in

securities--at

cost

..........................................................

$

151,843‌

$

27,813‌

$

28,086‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

163‌

$

26,061‌

$

1‌

Assets

Investment

in

securities--at

value 

..........................................................

$

165,054‌

(a)

$

27,747‌

$

27,281‌

Investment

in

affiliated

Funds--at

value

.....................................................

163‌

26,061‌

1‌

Receivables:

Dividends

and

interest

.................................................................

157‌

6‌

12‌

Expense

reimbursement

from

Manager

...............................................

–‌

4‌

1‌

Fund

shares

sold

.......................................................................

36‌

558‌

60‌

Investment

securities

sold

.............................................................

808‌

1,596‌

1,993‌

Total

Assets  

166,218‌

55,972‌

29,348‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

119‌

1‌

16‌

Accrued

distribution

fees

....................................................................

2‌

–‌

6‌

Accrued

directors'

expenses

.................................................................

1‌

–‌

–‌

Accrued

professional

fees

...................................................................

3‌

4‌

5‌

Accrued

other

expenses

.....................................................................

1‌

–‌

–‌

Payables:

Borrowing

.............................................................................

–‌

–‌

1,805‌

Fund

shares

redeemed

.................................................................

84‌

–‌

202‌

Investment

securities

purchased

......................................................

115‌

27,813‌

168‌

Options

and

swaptions

contracts

written

 (premiums

received

$

0

,

$

1,596

and

$

1,759

)

......................................................................................

–‌

1,573‌

899‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

607‌

–‌

–‌

Total

Liabilities  

932‌

29,391‌

3,101‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

165,286‌

$

26,581‌

$

26,247‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

152,583‌

$

26,619‌

$

26,131‌

Total

distributable

earnings

(accumulated

loss)

.............................................

12,703‌

(

38‌

)

116‌

Total

Net

Assets 

$

165,286‌

$

26,581‌

$

26,247‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

200,000‌

200,000‌

200,000‌

Net

Asset

Value

Per

Share:

Class

1

:

Net

Assets

..........................................................................

$

156,903‌

N/A‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

12,037‌

Net

Asset

Value

per

share

.............................................................

$

13

.03‌

Class

2

:

Net

Assets

..........................................................................

$

8,383‌

$

26,581‌

$

26,247‌

Shares

Issued

and

Outstanding

........................................................

649‌

2,662‌

2,584‌

Net

Asset

Value

per

share

.............................................................

$

12

.91‌

$

9

.99‌

$

10

.16‌

(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.

December

31,

2022

51

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

U.S.

LargeCap

Buffer

October

Account

Investment

in

securities--at

cost

......................................................................................................................

$

18,575‌

Assets

Investment

in

securities--at

value 

......................................................................................................................

$

18,818‌

Receivables:

Dividends

and

interest

.............................................................................................................................

9‌

Expense

reimbursement

from

Manager

...........................................................................................................

2‌

Investment

securities

sold

.........................................................................................................................

4,222‌

Total

Assets  

23,051‌

Liabilities

Accrued

management

and

investment

advisory

fees

....................................................................................................

13‌

Accrued

distribution

fees

................................................................................................................................

5‌

Accrued

professional

fees

...............................................................................................................................

5‌

Cash

overdraft

...........................................................................................................................................

1,825‌

Payables:

Borrowing

.........................................................................................................................................

2,200‌

Fund

shares

redeemed

.............................................................................................................................

36‌

Investment

securities

purchased

..................................................................................................................

179‌

Options

and

swaptions

contracts

written

 (premiums

received

$

1,168

)

...........................................................................

810‌

Total

Liabilities  

5,073‌

Net

Assets

Applicable

to

Outstanding

Shares

........................................................................................................

$

17,978‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...........................................................................................................

$

16,859‌

Total

distributable

earnings

(accumulated

loss)

.........................................................................................................

1,119‌

Total

Net

Assets 

$

17,978‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

........................................................................................................................................

200,000‌

Net

Asset

Value

Per

Share:

Class

2

:

Net

Assets

......................................................................................................................................

$

17,978‌

Shares

Issued

and

Outstanding

....................................................................................................................

1,711‌

Net

Asset

Value

per

share

.........................................................................................................................

$

10

.51‌

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

52

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Account

Bond

Market

Index

Account

Core

Plus

Bond

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

1‌

$

1,496‌

$

92‌

Dividends

.........................................................................................

60‌

162‌

14‌

Interest

............................................................................................

–‌

56,743‌

6,527‌

Securities

lending

-

net

...........................................................................

–‌

69‌

15‌

Total

Income

61‌

58,470‌

6,648‌

Expenses:

Management

and

investment

advisory

fees

......................................................

50‌

3,508‌

965‌

Distribution

f

ees

-

Class

3

........................................................................

21‌

N/A‌

N/A‌

Administrative

service

fees

-

Class

3

............................................................

13‌

N/A‌

N/A‌

Shareholder

meeting

expense

....................................................................

–‌

–‌

1‌

Chief

compliance

officer

expenses

...............................................................

–‌

2‌

–‌

Custodian

fees

....................................................................................

4‌

44‌

18‌

Directors'

expenses

...............................................................................

3‌

53‌

7‌

Professional fees

.................................................................................

5‌

6‌

14‌

Other

expenses

...................................................................................

–‌

8‌

1‌

Total

Gross

Expenses

96‌

3,621‌

1,006‌

Less:

Reimbursement

from

Manager

-

Class

3

..................................................

8‌

N/A‌

N/A‌

Total

Net

Expenses

88‌

3,621‌

1,006‌

Net

Investment

Income

(Loss)

(

27‌

)

54,849‌

5,642‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

swap

agreements

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

(

1,012‌

)

(

63,710‌

)

(

10,579‌

)

Futures

contracts

.................................................................................

–‌

–‌

(

1,373‌

)

Swap

agreements

.................................................................................

–‌

–‌

59‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

(

2,849‌

)

(

362,326‌

)

(

26,277‌

)

Futures

contracts

.................................................................................

–‌

–‌

(

35‌

)

Swap

agreements

.................................................................................

–‌

–‌

(

158‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

swap

agreements

(

3,861‌

)

(

426,036‌

)

(

38,363‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

3,888‌

)

$

(

371,187‌

)

$

(

32,721‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

53

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Account

Diversified

Balanced

Managed

Volatility

Account

Diversified

Balanced

Volatility

Control

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

15,273‌

$

2,625‌

$

3,665‌

Dividends

.........................................................................................

–‌

–‌

57‌

Interest

............................................................................................

–‌

–‌

2‌

Total

Income

15,273‌

2,625‌

3,724‌

Expenses:

Management

and

investment

advisory

fees

......................................................

419‌

79‌

251‌

Distribution

f

ees

-

Class

2

........................................................................

2,005‌

393‌

524‌

Distribution

f

ees

-

Class

3

........................................................................

1‌

–‌

–‌

Administrative

service

fees

-

Class

3

............................................................

1‌

–‌

–‌

Chief

compliance

officer

expenses

...............................................................

1‌

–‌

–‌

Custodian

fees

....................................................................................

–‌

–‌

1‌

Directors'

expenses

...............................................................................

19‌

5‌

7‌

Professional fees

.................................................................................

4‌

4‌

4‌

Other

expenses

...................................................................................

3‌

1‌

1‌

Total

Expenses

2,453‌

482‌

788‌

Net

Investment

Income

(Loss)

12,820‌

2,143‌

2,936‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

5‌

–‌

(

2,888‌

)

Investment

transactions

in

affiliated

Funds

......................................................

11,325‌

48‌

(

77‌

)

Futures

contracts

.................................................................................

–‌

–‌

(

337‌

)

Capital

gain

distributions

received

from

affiliated

Funds

........................................

34,261‌

6,165‌

4,546‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

–‌

–‌

(

2,291‌

)

Investments

in

affiliated

Funds

...................................................................

(

205,426‌

)

(

34,833‌

)

(

33,806‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

(

159,835‌

)

(

28,620‌

)

(

34,853‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

147,015‌

)

$

(

26,477‌

)

$

(

31,917‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

54

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Account

Diversified

Growth

Managed

Volatility

Account

Diversified

Growth

Volatility

Control

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

59,350‌

$

5,081‌

$

20,462‌

Interest

............................................................................................

–‌

–‌

27‌

Total

Income

59,350‌

5,081‌

20,489‌

Expenses:

Management

and

investment

advisory

fees

......................................................

1,674‌

163‌

1,421‌

Distribution

f

ees

-

Class

2

........................................................................

8,371‌

815‌

2,961‌

Distribution

f

ees

-

Class

3

........................................................................

1‌

–‌

–‌

Administrative

service

fees

-

Class

3

............................................................

1‌

–‌

–‌

Chief

compliance

officer

expenses

...............................................................

2‌

1‌

1‌

Custodian

fees

....................................................................................

–‌

–‌

1‌

Directors'

expenses

...............................................................................

70‌

9‌

28‌

Professional fees

.................................................................................

4‌

4‌

4‌

Other

expenses

...................................................................................

11‌

1‌

4‌

Total

Expenses

10,134‌

993‌

4,420‌

Net

Investment

Income

(Loss)

49,216‌

4,088‌

16,069‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

–‌

–‌

(

20,759‌

)

Investment

transactions

in

affiliated

Funds

......................................................

20,019‌

637‌

(

50‌

)

Futures

contracts

.................................................................................

–‌

–‌

563‌

Capital

gain

distributions

received

from

affiliated

Funds

........................................

176,503‌

16,375‌

40,100‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

–‌

–‌

(

5,212‌

)

Investments

in

affiliated

Funds

...................................................................

(

857,158‌

)

(

78,488‌

)

(

210,629‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

(

660,636‌

)

(

61,476‌

)

(

195,987‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

611,420‌

)

$

(

57,388‌

)

$

(

179,918‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

55

See

accompanying

notes.

Amounts

in

thousands

Diversified

Income

Account

Diversified

International

Account

Equity

Income

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

5,211‌

$

55‌

$

202‌

Dividends

.........................................................................................

–‌

7,949‌

16,853‌

Withholding

tax

..................................................................................

–‌

(714‌)

(433‌)

Interest

............................................................................................

–‌

–‌

2‌

Securities

lending

-

net

...........................................................................

–‌

18‌

30‌

Total

Income

5,211‌

7,308‌

16,654‌

Expenses:

Management

and

investment

advisory

fees

......................................................

138‌

2,111‌

3,199‌

Distribution

fees

-

Class

2

........................................................................

690‌

N/A‌

134‌

Distribution

fees

-

Class

3

........................................................................

1‌

N/A‌

1‌

Custodian

fees

....................................................................................

–‌

86‌

13‌

Directors'

expenses

...............................................................................

8‌

7‌

17‌

Professional fees

.................................................................................

4‌

31‌

–‌

Other

expenses

...................................................................................

1‌

40‌

2‌

Total

Expenses

842‌

2,275‌

3,366‌

Net

Investment

Income

(Loss)

4,369‌

5,033‌

13,288‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

Net

realized

gain

(loss)

from:

Investment

transactions (net

of

foreign

taxes

of 

$0,

$(

2)

and

$0

,

respectively)

.................

–‌

(2,607‌)

39,464‌

Investment

transactions

in

affiliated

Funds

......................................................

1,619‌

–‌

–‌

Foreign

currency

transactions

....................................................................

–‌

(351‌)

–‌

Capital

gain

distributions

received

from

affiliated

Funds

........................................

8,171‌

–‌

–‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

 (net

of

foreign

taxes

of

$0,

$1

45

and

$0,

respectively)

.............................

–‌

(61,815‌)

(129,955‌)

Investments

in

affiliated

Funds

...................................................................

(59,996‌)

–‌

–‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

(50,206‌)

(64,773‌)

(90,491‌)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(45,837‌)

$

(59,740‌)

$

(77,203‌)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

56

See

accompanying

notes.

Amounts

in

thousands

Global

Emerging

Markets

Account

(a)

Government

&

High

Quality

Bond

Account

LargeCap

Growth

Account

I

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

50‌

$

62‌

$

109‌

Dividends

.........................................................................................

2,437‌

–‌

2,625‌

Withholding

tax

..................................................................................

(231‌)

–‌

(25‌)

Interest

............................................................................................

–‌

3,207‌

3‌

Securities

lending

-

net

...........................................................................

5‌

1‌

21‌

Total

Income

2,261‌

3,270‌

2,733‌

Expenses:

Management

and

investment

advisory

fees

......................................................

735‌

883‌

3,583‌

Custodian

fees

....................................................................................

32‌

6‌

17‌

Directors'

expenses

...............................................................................

4‌

6‌

13‌

Professional fees

.................................................................................

34‌

6‌

8‌

Other

expenses

...................................................................................

2‌

–‌

2‌

Total

Gross

Expenses

807‌

901‌

3,623‌

Less: Reimbursement

from

Manager

............................................................

–‌

–‌

82‌

Less:

Reimbursement

from

Manager

-

Class

1

..................................................

–‌

–‌

1‌

Total

Net

Expenses

807‌

901‌

3,540‌

Net

Investment

Income

(Loss)

1,454‌

2,369‌

(807‌)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions (net

of

foreign

taxes

of 

$

(56)

,

$0

and

$0,

respectively)

................

(3,886‌)

(6,477‌)

23,703‌

Foreign

currency

transactions

....................................................................

(91‌)

–‌

–‌

Futures

contracts

.................................................................................

–‌

(1,716‌)

(437‌)

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

 (net

of

foreign

taxes

of

$149

,

$0

and

$0,

respectively)

.............................

(17,743‌)

(16,977‌)

(260,017‌)

Futures

contracts

.................................................................................

–‌

(72‌)

(105‌)

Translation

of

assets

and

liabilities

in

foreign

currencies

........................................

36‌

–‌

–‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

(21,684‌)

(25,242‌)

(236,856‌)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(20,230‌)

$

(22,873‌)

$

(237,663‌)

(a)

Effective

May

2,

2022,

International

Emerging

Markets

Account

changed

its

name

to

Global

Emerging

Markets

Account.

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

57

See

accompanying

notes.

Amounts

in

thousands

LargeCap

S&P

500

Index

Account

LargeCap

S&P

500

Managed

Volatility

Index

Account

MidCap

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

757‌

$

148‌

$

19‌

Dividends

.........................................................................................

42,915‌

2,982‌

4,515‌

Withholding

tax

..................................................................................

(

11‌

)

(

1‌

)

(

99‌

)

Interest

............................................................................................

10‌

5‌

–‌

Securities

lending

-

net

...........................................................................

10‌

1‌

–‌

Total

Income

43,681‌

3,135‌

4,435‌

Expenses:

Management

and

investment

advisory

fees

......................................................

6,600‌

909‌

3,247‌

Distribution

f

ees

-

Class

2

........................................................................

107‌

N/A‌

83‌

Chief

compliance

officer

expenses

...............................................................

1‌

–‌

–‌

Custodian

fees

....................................................................................

13‌

15‌

5‌

Directors'

expenses

...............................................................................

59‌

6‌

15‌

Professional fees

.................................................................................

4‌

4‌

4‌

Other

expenses

...................................................................................

48‌

3‌

2‌

Total

Expenses

6,832‌

937‌

3,356‌

Net

Investment

Income

(Loss)

36,849‌

2,198‌

1,079‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

167,486‌

12,835‌

18,967‌

Futures

contracts

.................................................................................

(

8,795‌

)

(

608‌

)

–‌

Options

and

swaptions

...........................................................................

–‌

1,246‌

–‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

(

760,127‌

)

(

53,284‌

)

(

193,890‌

)

Futures

contracts

.................................................................................

(

5,076‌

)

(

262‌

)

–‌

Options

and

swaptions

...........................................................................

–‌

(

1,004‌

)

–‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

options

and

swaptions

(

606,512‌

)

(

41,077‌

)

(

174,923‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

569,663‌

)

$

(

38,879‌

)

$

(

173,844‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

58

See

accompanying

notes.

Amounts

in

thousands

Principal

Capital

Appreciation

Account

Principal

LifeTime

2010

Account

Principal

LifeTime

2020

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

48‌

$

896‌

$

3,922‌

Dividends

.........................................................................................

2,384‌

–‌

–‌

Withholding

tax

..................................................................................

(

14‌

)

–‌

–‌

Interest

............................................................................................

3‌

–‌

–‌

Securities

lending

-

net

...........................................................................

2‌

–‌

–‌

Total

Income

2,423‌

896‌

3,922‌

Expenses:

Management

and

investment

advisory

fees

......................................................

1,017‌

N/A‌

N/A‌

Distribution

f

ees

-

Class

2

........................................................................

75‌

N/A‌

N/A‌

Custodian

fees

....................................................................................

4‌

–‌

–‌

Directors'

expenses

...............................................................................

6‌

3‌

6‌

Professional fees

.................................................................................

4‌

4‌

4‌

Other

expenses

...................................................................................

1‌

–‌

–‌

Total

Expenses

1,107‌

7‌

10‌

Net

Investment

Income

(Loss)

1,316‌

889‌

3,912‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

13,105‌

–‌

–‌

Investment

transactions

in

affiliated

Funds

......................................................

–‌

(

64‌

)

(

245‌

)

Capital

gain

distributions

received

from

affiliated

Funds

........................................

–‌

419‌

2,474‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

(

45,995‌

)

–‌

–‌

Investments

in

affiliated

Funds

...................................................................

–‌

(

6,409‌

)

(

34,528‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

(

32,890‌

)

(

6,054‌

)

(

32,299‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

31,574‌

)

$

(

5,165‌

)

$

(

28,387‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

59

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2030

Account

Principal

LifeTime

2040

Account

Principal

LifeTime

2050

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

4,469‌

$

1,812‌

$

727‌

Total

Income

4,469‌

1,812‌

727‌

Expenses:

Directors'

expenses

...............................................................................

7‌

5‌

4‌

Professional fees

.................................................................................

5‌

4‌

4‌

Total

Expenses

12‌

9‌

8‌

Net

Investment

Income

(Loss)

4,457‌

1,803‌

719‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

in

affiliated

Funds

......................................................

232‌

(

23‌

)

(

77‌

)

Capital

gain

distributions

received

from

affiliated

Funds

........................................

4,919‌

3,442‌

1,937‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

in

affiliated

Funds

...................................................................

(

54,937‌

)

(

29,678‌

)

(

15,580‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

(

49,786‌

)

(

26,259‌

)

(

13,720‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

45,329‌

)

$

(

24,456‌

)

$

(

13,001‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

60

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2060

Account

Principal

LifeTime

Strategic

Income

Account

Real

Estate

Securities

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

193‌

$

673‌

$

24‌

Dividends

.........................................................................................

–‌

–‌

3,654‌

Interest

............................................................................................

–‌

–‌

1‌

Total

Income

193‌

673‌

3,679‌

Expenses:

Management

and

investment

advisory

fees

......................................................

N/A‌

N/A‌

1,208‌

Distribution

f

ees

-

Class

2

........................................................................

N/A‌

N/A‌

26‌

Custodian

fees

....................................................................................

–‌

–‌

2‌

Directors'

expenses

...............................................................................

2‌

3‌

5‌

Professional fees

.................................................................................

4‌

4‌

4‌

Total

Expenses

6‌

7‌

1,245‌

Net

Investment

Income

(Loss)

187‌

666‌

2,434‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

–‌

–‌

5,568‌

Investment

transactions

in

affiliated

Funds

......................................................

(

8‌

)

(

134‌

)

–‌

Capital

gain

distributions

received

from

affiliated

Funds

........................................

515‌

310‌

–‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

–‌

–‌

(

54,789‌

)

Investments

in

affiliated

Funds

...................................................................

(

4,027‌

)

(

4,788‌

)

–‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

(

3,520‌

)

(

4,612‌

)

(

49,221‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

3,333‌

)

$

(

3,946‌

)

$

(

46,787‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

61

See

accompanying

notes.

Amounts

in

thousands

SAM

Balanced

Portfolio

SAM

Conservative

Balanced

Portfolio

SAM

Conservative

Growth

Portfolio

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

15,072‌

$

5,035‌

$

7,389‌

Dividends

.........................................................................................

12‌

2‌

11‌

Total

Income

15,084‌

5,037‌

7,400‌

Expenses:

Management

and

investment

advisory

fees

......................................................

1,431‌

410‌

852‌

Distribution

f

ees

-

Class

2

........................................................................

342‌

79‌

413‌

Custodian

fees

....................................................................................

1‌

1‌

1‌

Directors'

expenses

...............................................................................

14‌

6‌

9‌

Professional fees

.................................................................................

4‌

4‌

4‌

Other

expenses

...................................................................................

2‌

–‌

1‌

Total

Expenses

1,794‌

500‌

1,280‌

Net

Investment

Income

(Loss)

13,290‌

4,537‌

6,120‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

(

299‌

)

(

56‌

)

(

253‌

)

Investment

transactions

in

affiliated

Funds

......................................................

9,870‌

(

1,684‌

)

8,119‌

Capital

gain

distributions

received

from

affiliated

Funds

........................................

11,926‌

2,074‌

9,457‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

in

affiliated

Funds

...................................................................

(

152,302‌

)

(

34,462‌

)

(

101,143‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

(

130,805‌

)

(

34,128‌

)

(

83,820‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

117,515‌

)

$

(

29,591‌

)

$

(

77,700‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

62

See

accompanying

notes.

Amounts

in

thousands

SAM

Flexible

Income

Portfolio

SAM

Strategic

Growth

Portfolio

Short-Term

Income

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

4,994‌

$

6,097‌

$

31‌

Dividends

.........................................................................................

–‌

10‌

–‌

Interest

............................................................................................

–‌

–‌

3,063‌

Total

Income

4,994‌

6,107‌

3,094‌

Expenses:

Management

and

investment

advisory

fees

......................................................

375‌

829‌

632‌

Distribution

f

ees

-

Class

2

........................................................................

99‌

435‌

N/A‌

Custodian

fees

....................................................................................

–‌

1‌

11‌

Directors'

expenses

...............................................................................

5‌

9‌

5‌

Professional fees

.................................................................................

4‌

4‌

4‌

Other

expenses

...................................................................................

1‌

1‌

1‌

Total

Expenses

484‌

1,279‌

653‌

Net

Investment

Income

(Loss)

4,510‌

4,828‌

2,441‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

–‌

(

247‌

)

(

1,194‌

)

Investment

transactions

in

affiliated

Funds

......................................................

(

6,580‌

)

1,449‌

–‌

Futures

contracts

.................................................................................

–‌

–‌

(

91‌

)

Capital

gain

distributions

received

from

affiliated

Funds

........................................

955‌

10,164‌

–‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

–‌

–‌

(

6,697‌

)

Investments

in

affiliated

Funds

...................................................................

(

23,780‌

)

(

96,735‌

)

–‌

Futures

contracts

.................................................................................

–‌

–‌

(

11‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

(

29,405‌

)

(

85,369‌

)

(

7,993‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(

24,895‌

)

$

(

80,541‌

)

$

(

5,552‌

)

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

63

See

accompanying

notes.

Amounts

in

thousands

SmallCap

Account

U.S.

LargeCap

Buffer

January

Account

(a)

U.S.

LargeCap

Buffer

July

Account

(b)

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

..................................................................

$

30‌

$

6‌

$

3‌

Dividends

.........................................................................................

2,040‌

–‌

209‌

Withholding

tax

..................................................................................

(13‌)

–‌

–‌

Securities

lending

-

net

...........................................................................

63‌

–‌

–‌

Total

Income

2,120‌

6‌

212‌

Expenses:

Management

and

investment

advisory

fees

......................................................

1,521‌

1‌

87‌

Distribution

fees

-

Class

2

........................................................................

22‌

–‌

32‌

Custodian

fees

....................................................................................

3‌

–‌

1‌

Directors'

expenses

...............................................................................

6‌

–‌

–‌

Professional fees

.................................................................................

4‌

4‌

5‌

Other

expenses

...................................................................................

1‌

–‌

–‌

Total

Gross

Expenses

1,557‌

5‌

125‌

Less:

Reimbursement

from

Manager

-

Class

2

..................................................

–‌

4‌

4‌

Total

Net

Expenses

1,557‌

1‌

121‌

Net

Investment

Income

(Loss)

563‌

5‌

91‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

(470‌)

–‌

(30‌)

Options

and

swaptions

...........................................................................

–‌

–‌

79‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

(45,822‌)

(66‌)

(805‌)

Options

and

swaptions

...........................................................................

–‌

23‌

860‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

(46,292‌)

(43‌)

104‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

(45,729‌)

$

(38‌)

$

195‌

(a)

Period

from

December

28,

2022,

date

operations

commenced,

through

December

31,

2022.

(b)

Period

from

June

29,

2022,

date

operations

commenced,

through

December

31,

2022.

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2022

64

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

Buffer

October

Account

(a)

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

.......................................................................................................................

$

7‌

Dividends

..............................................................................................................................................

88‌

Total

Income

95‌

Expenses:

Management

and

investment

advisory

fees

...........................................................................................................

40‌

Distribution

f

ees

-

Class

2

.............................................................................................................................

14‌

Professional fees

......................................................................................................................................

5‌

Other

expenses

........................................................................................................................................

3‌

Total

Gross

Expenses

62‌

Less:

Reimbursement

from

Manager

-

Class

2

.......................................................................................................

6‌

Total

Net

Expenses

56‌

Net

Investment

Income

(Loss)

39‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

...............................................................................................................................

358‌

Options

and

swaptions

................................................................................................................................

151‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

............................................................................................................................................

243‌

Options

and

swaptions

................................................................................................................................

358‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

1,110‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

1,149‌

(a)

Period

from

September

29,

2022,

date

operations

commenced,

through

December

31,

2022.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

65

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

(

27‌

)

$

(

49‌

)

Net

realized

gain

(loss)

on

investments

................................................................................................

(

1,012‌

)

152‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

2,849‌

)

1,312‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

3,888‌

)

1,415‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

13‌

)

(

90‌

)

Total

Dividends

and

Distributions

(

13‌

)

(

90‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

935‌

)

7,020‌

Total

Increase

(Decrease)

in

Net

Assets

(

4,836‌

)

8,345‌

Net

Assets

Beginning

of

period

....................................................................................................................

13,515‌

5,170‌

End

of

period

..........................................................................................................................

$

8,679‌

$

13,515‌

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

7,053‌

Reinvested

.....................................................................................................

13‌

Redeemed

......................................................................................................

(

8,001‌

)

Net

Increase

(Decrease)

$

(

935‌

)

Shares:

Sold

..........................................................................................................

704‌

Reinvested

.....................................................................................................

1‌

Redeemed

......................................................................................................

(

774‌

)

Net

Increase

(Decrease)

(

69‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

7,278‌

Reinvested

.....................................................................................................

90‌

Redeemed

......................................................................................................

(

348‌

)

Net

Increase

(Decrease)

$

7,020‌

Shares:

Sold

..........................................................................................................

575‌

Reinvested

.....................................................................................................

7‌

Redeemed

......................................................................................................

(

27‌

)

Net

Increase

(Decrease)

555‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

13‌

)

Total

Dividends

and

Distributions

$

(

13‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

90‌

)

Total

Dividends

and

Distributions

$

(

90‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

66

See

accompanying

notes.

Amounts

in

thousands

Bond

Market

Index

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

54,849‌

$

45,135‌

Net

realized

gain

(loss)

on

investments

................................................................................................

(

63,710‌

)

10,041‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

362,326‌

)

(

104,415‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

371,187‌

)

(

49,239‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

55,335‌

)

(

65,097‌

)

Total

Dividends

and

Distributions

(

55,335‌

)

(

65,097‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

184,015‌

)

279,685‌

Total

Increase

(Decrease)

in

Net

Assets

(

610,537‌

)

165,349‌

Net

Assets

Beginning

of

period

....................................................................................................................

2,900,608‌

2,735,259‌

End

of

period

..........................................................................................................................

$

2,290,071‌

$

2,900,608‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

389,255‌

Reinvested

.....................................................................................................

55,335‌

Redeemed

......................................................................................................

(

628,605‌

)

Net

Increase

(Decrease)

$

(

184,015‌

)

Shares:

Sold

..........................................................................................................

40,752‌

Reinvested

.....................................................................................................

5,982‌

Redeemed

......................................................................................................

(

65,346‌

)

Net

Increase

(Decrease)

(

18,612‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

547,705‌

Reinvested

.....................................................................................................

65,097‌

Redeemed

......................................................................................................

(

333,117‌

)

Net

Increase

(Decrease)

$

279,685‌

Shares:

Sold

..........................................................................................................

50,001‌

Reinvested

.....................................................................................................

5,983‌

Redeemed

......................................................................................................

(

30,507‌

)

Net

Increase

(Decrease)

25,477‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

55,335‌

)

Total

Dividends

and

Distributions

$

(

55,335‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

65,097‌

)

Total

Dividends

and

Distributions

$

(

65,097‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

67

See

accompanying

notes.

Amounts

in

thousands

Core

Plus

Bond

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

5,642‌

$

5,111‌

Net

realized

gain

(loss)

on

investments

,

futures

and

swap

agreements

................................................................

(

11,893‌

)

3,359‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

,

futures

and

swap

agreements

.................................

(

26,470‌

)

(

9,772‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

32,721‌

)

(

1,302‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

8,626‌

)

(

12,230‌

)

Total

Dividends

and

Distributions

(

8,626‌

)

(

12,230‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

8,012‌

)

(

6,042‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

49,359‌

)

(

19,574‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

236,382‌

255,956‌

End

of

period

..........................................................................................................................

$

187,023‌

$

236,382‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

20,483‌

Reinvested

.....................................................................................................

8,626‌

Redeemed

......................................................................................................

(

37,121‌

)

Net

Increase

(Decrease)

$

(

8,012‌

)

Shares:

Sold

..........................................................................................................

1,969‌

Reinvested

.....................................................................................................

902‌

Redeemed

......................................................................................................

(

3,605‌

)

Net

Increase

(Decrease)

(

734‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

29,658‌

Reinvested

.....................................................................................................

12,230‌

Redeemed

......................................................................................................

(

47,930‌

)

Net

Increase

(Decrease)

$

(

6,042‌

)

Shares:

Sold

..........................................................................................................

2,504‌

Reinvested

.....................................................................................................

1,057‌

Redeemed

......................................................................................................

(

4,025‌

)

Net

Increase

(Decrease)

(

464‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

8,626‌

)

Total

Dividends

and

Distributions

$

(

8,626‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

12,230‌

)

Total

Dividends

and

Distributions

$

(

12,230‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

68

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

12,820‌

$

17,690‌

Net

realized

gain

(loss)

on

investments

................................................................................................

45,591‌

83,118‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

205,426‌

)

3,843‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

147,015‌

)

104,651‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

91,817‌

)

(

71,869‌

)

Total

Dividends

and

Distributions

(

91,817‌

)

(

71,869‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

17,497‌

)

(

47,814‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

256,329‌

)

(

15,032‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

1,005,244‌

1,020,276‌

End

of

period

..........................................................................................................................

$

748,915‌

$

1,005,244‌

Class

1

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

.....................................................................................

$

835‌

$

6,172‌

$

358‌

Reinvested

................................................................................

4,093‌

87,663‌

61‌

Redeemed

.................................................................................

(

4,113‌

)

(

112,510‌

)

(

56‌

)

Net

Increase

(Decrease)

$

815‌

$

(

18,675‌

)

$

363‌

Shares:

Sold

.....................................................................................

51‌

404‌

24‌

Reinvested

................................................................................

300‌

6,399‌

4‌

Redeemed

.................................................................................

(

268‌

)

(

7,263‌

)

(

4‌

)

Net

Increase

(Decrease)

83‌

(

460‌

)

24‌

Year

Ended

December

31,

2021

Dollars:

Sold

.....................................................................................

$

1,245‌

$

11,560‌

$

314‌

Reinvested

................................................................................

3,051‌

68,811‌

7‌

Redeemed

.................................................................................

(

4,144‌

)

(

128,657‌

)

(

1‌

)

Net

Increase

(Decrease)

$

152‌

$

(

48,286‌

)

$

320‌

Shares:

Sold

.....................................................................................

68‌

634‌

17‌

Reinvested

................................................................................

172‌

3,872‌

–‌

Redeemed

.................................................................................

(

227‌

)

(

7,075‌

)

–‌

Net

Increase

(Decrease)

13‌

(

2,569‌

)

17‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

.........................................

$

(

4,093‌

)

$

(

87,663‌

)

$

(

61‌

)

Total

Dividends

and

Distributions

$

(

4,093‌

)

$

(

87,663‌

)

$

(

61‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

.........................................

$

(

3,051‌

)

$

(

68,811‌

)

$

(

7‌

)

Total

Dividends

and

Distributions

$

(

3,051‌

)

$

(

68,811‌

)

$

(

7‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

69

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Managed

Volatility

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

2,143‌

$

4,163‌

Net

realized

gain

(loss)

on

investments

................................................................................................

6,213‌

11,691‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

34,833‌

)

1,776‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

26,477‌

)

17,630‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

15,880‌

)

(

7,204‌

)

Total

Dividends

and

Distributions

(

15,880‌

)

(

7,204‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

321‌

)

(

11,504‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

42,678‌

)

(

1,078‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

184,071‌

185,149‌

End

of

period

..........................................................................................................................

$

141,393‌

$

184,071‌

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

6,468‌

–‌

Reinvested

..........................................................................................

15,879‌

1‌

Redeemed

...........................................................................................

(

22,669‌

)

–‌

Net

Increase

(Decrease)

$

(

322‌

)

$

1‌

Shares:

Sold

...............................................................................................

498‌

–‌

Reinvested

..........................................................................................

1,436‌

–‌

Redeemed

...........................................................................................

(

1,834‌

)

–‌

Net

Increase

(Decrease)

100‌

–‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

11,475‌

–‌

Reinvested

..........................................................................................

7,203‌

1‌

Redeemed

...........................................................................................

(

30,183‌

)

–‌

Net

Increase

(Decrease)

$

(

11,505‌

)

$

1‌

Shares:

Sold

...............................................................................................

805‌

–‌

Reinvested

..........................................................................................

509‌

–‌

Redeemed

...........................................................................................

(

2,121‌

)

–‌

Net

Increase

(Decrease)

(

807‌

)

–‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

15,879‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

15,879‌

)

$

(

1‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

7,203‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

7,203‌

)

$

(

1‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

70

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Volatility

Control

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

2,936‌

$

3,482‌

Net

realized

gain

(loss)

on

investments

and

futures

...................................................................................

1,244‌

12,812‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

36,097‌

)

3,609‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

31,917‌

)

19,903‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

16,150‌

)

(

6,085‌

)

Total

Dividends

and

Distributions

(

16,150‌

)

(

6,085‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

25,499‌

31,501‌

Total

Increase

(Decrease)

in

Net

Assets

(

22,568‌

)

45,319‌

Net

Assets

Beginning

of

period

....................................................................................................................

229,798‌

184,479‌

End

of

period

..........................................................................................................................

$

207,230‌

$

229,798‌

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

22,113‌

–‌

Reinvested

..........................................................................................

16,149‌

1‌

Redeemed

...........................................................................................

(

12,764‌

)

–‌

Net

Increase

(Decrease)

$

25,498‌

$

1‌

Shares:

Sold

...............................................................................................

1,925‌

–‌

Reinvested

..........................................................................................

1,531‌

–‌

Redeemed

...........................................................................................

(

1,105‌

)

–‌

Net

Increase

(Decrease)

2,351‌

–‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

32,617‌

–‌

Reinvested

..........................................................................................

6,085‌

–‌

Redeemed

...........................................................................................

(

7,201‌

)

–‌

Net

Increase

(Decrease)

$

31,501‌

–‌

Shares:

Sold

...............................................................................................

2,530‌

–‌

Reinvested

..........................................................................................

468‌

–‌

Redeemed

...........................................................................................

(

559‌

)

–‌

Net

Increase

(Decrease)

2,439‌

–‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

16,149‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

16,149‌

)

$

(

1‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

6,085‌

)

$

–‌

Total

Dividends

and

Distributions

$

(

6,085‌

)

$

–‌

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

71

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

49,216‌

$

68,785‌

Net

realized

gain

(loss)

on

investments

................................................................................................

196,522‌

316,529‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

857,158‌

)

157,988‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

611,420‌

)

543,302‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

358,548‌

)

(

250,729‌

)

Total

Dividends

and

Distributions

(

358,548‌

)

(

250,729‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

41,449‌

(

171,209‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

928,519‌

)

121,364‌

Net

Assets

Beginning

of

period

....................................................................................................................

3,974,456‌

3,853,092‌

End

of

period

..........................................................................................................................

$

3,045,937‌

$

3,974,456‌

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

29,072‌

$

3‌

Reinvested

..........................................................................................

358,524‌

24‌

Redeemed

...........................................................................................

(

346,144‌

)

(

30‌

)

Net

Increase

(Decrease)

$

41,452‌

$

(

3‌

)

Shares:

Sold

...............................................................................................

1,595‌

–‌

Reinvested

..........................................................................................

22,022‌

1‌

Redeemed

...........................................................................................

(

18,929‌

)

(

1‌

)

Net

Increase

(Decrease)

4,688‌

–‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

29,205‌

$

257‌

Reinvested

..........................................................................................

250,728‌

1‌

Redeemed

...........................................................................................

(

451,399‌

)

(

1‌

)

Net

Increase

(Decrease)

$

(

171,466‌

)

$

257‌

Shares:

Sold

...............................................................................................

1,372‌

12‌

Reinvested

..........................................................................................

11,911‌

–‌

Redeemed

...........................................................................................

(

21,202‌

)

–‌

Net

Increase

(Decrease)

(

7,919‌

)

12‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

358,524‌

)

$

(

24‌

)

Total

Dividends

and

Distributions

$

(

358,524‌

)

$

(

24‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

250,728‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

250,728‌

)

$

(

1‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

72

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Managed

Volatility

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

4,088‌

$

9,314‌

Net

realized

gain

(loss)

on

investments

................................................................................................

17,012‌

28,838‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

78,488‌

)

11,557‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

57,388‌

)

49,709‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

35,729‌

)

(

15,269‌

)

Total

Dividends

and

Distributions

(

35,729‌

)

(

15,269‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

2,837‌

)

(

23,764‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

95,954‌

)

10,676‌

Net

Assets

Beginning

of

period

....................................................................................................................

388,924‌

378,248‌

End

of

period

..........................................................................................................................

$

292,970‌

$

388,924‌

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

6,850‌

–‌

Reinvested

..........................................................................................

35,728‌

1‌

Redeemed

...........................................................................................

(

45,416‌

)

–‌

Net

Increase

(Decrease)

$

(

2,838‌

)

$

1‌

Shares:

Sold

...............................................................................................

501‌

–‌

Reinvested

..........................................................................................

3,030‌

–‌

Redeemed

...........................................................................................

(

3,441‌

)

–‌

Net

Increase

(Decrease)

90‌

–‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

14,028‌

$

1‌

Reinvested

..........................................................................................

15,269‌

–‌

Redeemed

...........................................................................................

(

53,062‌

)

–‌

Net

Increase

(Decrease)

$

(

23,765‌

)

$

1‌

Shares:

Sold

...............................................................................................

929‌

–‌

Reinvested

..........................................................................................

1,002‌

–‌

Redeemed

...........................................................................................

(

3,481‌

)

–‌

Net

Increase

(Decrease)

(

1,550‌

)

–‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

35,728‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

35,728‌

)

$

(

1‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

15,269‌

)

$

–‌

Total

Dividends

and

Distributions

$

(

15,269‌

)

$

–‌

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

73

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Volatility

Control

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

16,069‌

$

19,273‌

Net

realized

gain

(loss)

on

investments

and

futures

...................................................................................

19,854‌

82,568‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

215,841‌

)

44,292‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

179,918‌

)

146,133‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

100,929‌

)

(

31,026‌

)

Total

Dividends

and

Distributions

(

100,929‌

)

(

31,026‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

200,538‌

166,448‌

Total

Increase

(Decrease)

in

Net

Assets

(

80,309‌

)

281,555‌

Net

Assets

Beginning

of

period

....................................................................................................................

1,277,140‌

995,585‌

End

of

period

..........................................................................................................................

$

1,196,831‌

$

1,277,140‌

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

122,311‌

–‌

Reinvested

..........................................................................................

100,928‌

1‌

Redeemed

...........................................................................................

(

22,702‌

)

–‌

Net

Increase

(Decrease)

$

200,537‌

$

1‌

Shares:

Sold

...............................................................................................

10,128‌

–‌

Reinvested

..........................................................................................

9,142‌

–‌

Redeemed

...........................................................................................

(

1,899‌

)

–‌

Net

Increase

(Decrease)

17,371‌

–‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

158,445‌

–‌

Reinvested

..........................................................................................

31,026‌

–‌

Redeemed

...........................................................................................

(

23,023‌

)

–‌

Net

Increase

(Decrease)

$

166,448‌

–‌

Shares:

Sold

...............................................................................................

11,705‌

–‌

Reinvested

..........................................................................................

2,268‌

–‌

Redeemed

...........................................................................................

(

1,701‌

)

–‌

Net

Increase

(Decrease)

12,272‌

–‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

100,928‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

100,928‌

)

$

(

1‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

31,026‌

)

$

–‌

Total

Dividends

and

Distributions

$

(

31,026‌

)

$

–‌

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

74

See

accompanying

notes.

Amounts

in

thousands

Diversified

Income

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

4,369‌

$

5,767‌

Net

realized

gain

(loss)

on

investments

................................................................................................

9,790‌

14,072‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

59,996‌

)

2,165‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

45,837‌

)

22,004‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

19,858‌

)

(

13,544‌

)

Total

Dividends

and

Distributions

(

19,858‌

)

(

13,544‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

6,715‌

)

(

5,231‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

72,410‌

)

3,229‌

Net

Assets

Beginning

of

period

....................................................................................................................

326,764‌

323,535‌

End

of

period

..........................................................................................................................

$

254,354‌

$

326,764‌

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

25,673‌

$

29‌

Reinvested

..........................................................................................

19,855‌

3‌

Redeemed

...........................................................................................

(

51,591‌

)

(

684‌

)

Net

Increase

(Decrease)

$

(

6,063‌

)

$

(

652‌

)

Shares:

Sold

...............................................................................................

1,931‌

2‌

Reinvested

..........................................................................................

1,640‌

–‌

Redeemed

...........................................................................................

(

3,807‌

)

(

49‌

)

Net

Increase

(Decrease)

(

236‌

)

(

47‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

50,123‌

$

769‌

Reinvested

..........................................................................................

13,513‌

31‌

Redeemed

...........................................................................................

(

69,652‌

)

(

15‌

)

Net

Increase

(Decrease)

$

(

6,016‌

)

$

785‌

Shares:

Sold

...............................................................................................

3,308‌

50‌

Reinvested

..........................................................................................

899‌

2‌

Redeemed

...........................................................................................

(

4,598‌

)

(

1‌

)

Net

Increase

(Decrease)

(

391‌

)

51‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

19,855‌

)

$

(

3‌

)

Total

Dividends

and

Distributions

$

(

19,855‌

)

$

(

3‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

13,513‌

)

$

(

31‌

)

Total

Dividends

and

Distributions

$

(

13,513‌

)

$

(

31‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

75

See

accompanying

notes.

Amounts

in

thousands

Diversified

International

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

5,033‌

$

4,504‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

.......................................................................

(

2,958‌

)

26,148‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

61,815‌

)

(

2,864‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

59,740‌

)

27,788‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

29,853‌

)

(

5,303‌

)

Total

Dividends

and

Distributions

(

29,853‌

)

(

5,303‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

26,888‌

(

14,785‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

62,705‌

)

7,700‌

Net

Assets

Beginning

of

period

....................................................................................................................

299,426‌

291,726‌

End

of

period

..........................................................................................................................

$

236,721‌

$

299,426‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

19,900‌

Reinvested

.....................................................................................................

29,853‌

Redeemed

......................................................................................................

(

22,865‌

)

Net

Increase

(Decrease)

$

26,888‌

Shares:

Sold

..........................................................................................................

1,264‌

Reinvested

.....................................................................................................

2,316‌

Redeemed

......................................................................................................

(

1,479‌

)

Net

Increase

(Decrease)

2,101‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

17,997‌

Reinvested

.....................................................................................................

5,303‌

Redeemed

......................................................................................................

(

38,085‌

)

Net

Increase

(Decrease)

$

(

14,785‌

)

Shares:

Sold

..........................................................................................................

955‌

Reinvested

.....................................................................................................

274‌

Redeemed

......................................................................................................

(

2,021‌

)

Net

Increase

(Decrease)

(

792‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

29,853‌

)

Total

Dividends

and

Distributions

$

(

29,853‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

5,303‌

)

Total

Dividends

and

Distributions

$

(

5,303‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

76

See

accompanying

notes.

Amounts

in

thousands

Equity

Income

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

13,288‌

$

13,034‌

Net

realized

gain

(loss)

on

investments

................................................................................................

39,464‌

89,817‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

129,955‌

)

53,748‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

77,203‌

)

156,599‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

90,442‌

)

(

14,647‌

)

Total

Dividends

and

Distributions

(

90,442‌

)

(

14,647‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

94,716‌

(

176,299‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

72,929‌

)

(

34,347‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

755,496‌

789,843‌

End

of

period

..........................................................................................................................

$

682,567‌

$

755,496‌

Class

1

Class

2

Class

3

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

.....................................................................................

$

81,023‌

$

13,227‌

$

382‌

Reinvested

................................................................................

83,164‌

7,220‌

58‌

Redeemed

.................................................................................

(

85,628‌

)

(

4,544‌

)

(

186‌

)

Net

Increase

(Decrease)

$

78,559‌

$

15,903‌

$

254‌

Shares:

Sold

.....................................................................................

2,726‌

447‌

13‌

Reinvested

................................................................................

3,184‌

280‌

2‌

Redeemed

.................................................................................

(

2,815‌

)

(

156‌

)

(

7‌

)

Net

Increase

(Decrease)

3,095‌

571‌

8‌

Year

Ended

December

31,

2021

Dollars:

Sold

.....................................................................................

$

42,546‌

$

15,172‌

$

174‌

Reinvested

................................................................................

13,771‌

875‌

1‌

Redeemed

.................................................................................

(

245,030‌

)

(

3,764‌

)

(

44‌

)

Net

Increase

(Decrease)

$

(

188,713‌

)

$

12,283‌

$

131‌

Shares:

Sold

.....................................................................................

1,340‌

477‌

5‌

Reinvested

................................................................................

426‌

27‌

–‌

Redeemed

.................................................................................

(

7,761‌

)

(

119‌

)

(

1‌

)

Net

Increase

(Decrease)

(

5,995‌

)

385‌

4‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

.........................................

$

(

83,164‌

)

$

(

7,220‌

)

$

(

58‌

)

Total

Dividends

and

Distributions

$

(

83,164‌

)

$

(

7,220‌

)

$

(

58‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

.........................................

$

(

13,771‌

)

$

(

875‌

)

$

(

1‌

)

Total

Dividends

and

Distributions

$

(

13,771‌

)

$

(

875‌

)

$

(

1‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

77

See

accompanying

notes.

Amounts

in

thousands

Global

Emerging

Markets

Account

(a)

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

1,454‌

$

984‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

.......................................................................

(

3,977‌

)

7,008‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

foreign

currencies

.........................................

(

17,707‌

)

(

7,245‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

20,230‌

)

747‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

8,143‌

)

(

1,851‌

)

Total

Dividends

and

Distributions

(

8,143‌

)

(

1,851‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

5,573‌

(

1,920‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

22,800‌

)

(

3,024‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

90,815‌

93,839‌

End

of

period

..........................................................................................................................

$

68,015‌

$

90,815‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

6,834‌

Reinvested

.....................................................................................................

8,143‌

Redeemed

......................................................................................................

(

9,404‌

)

Net

Increase

(Decrease)

$

5,573‌

Shares:

Sold

..........................................................................................................

440‌

Reinvested

.....................................................................................................

614‌

Redeemed

......................................................................................................

(

591‌

)

Net

Increase

(Decrease)

463‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

10,524‌

Reinvested

.....................................................................................................

1,851‌

Redeemed

......................................................................................................

(

14,295‌

)

Net

Increase

(Decrease)

$

(

1,920‌

)

Shares:

Sold

..........................................................................................................

504‌

Reinvested

.....................................................................................................

90‌

Redeemed

......................................................................................................

(

684‌

)

Net

Increase

(Decrease)

(

90‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

8,143‌

)

Total

Dividends

and

Distributions

$

(

8,143‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

1,851‌

)

Total

Dividends

and

Distributions

$

(

1,851‌

)

(a)

Effective

May

2,

2022,

International

Emerging

Markets

Account

changed

its

name

to

Global

Emerging

Markets

Account.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

78

See

accompanying

notes.

Amounts

in

thousands

Government

&

High

Quality

Bond

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

2,369‌

$

801‌

Net

realized

gain

(loss)

on

investments

and

futures

...................................................................................

(

8,193‌

)

833‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

.....................................................

(

17,049‌

)

(

4,200‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

22,873‌

)

(

2,566‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

2,203‌

)

(

4,266‌

)

Total

Dividends

and

Distributions

(

2,203‌

)

(

4,266‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

34,355‌

)

(

23,387‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

59,431‌

)

(

30,219‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

197,777‌

227,996‌

End

of

period

..........................................................................................................................

$

138,346‌

$

197,777‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

43,900‌

Reinvested

.....................................................................................................

2,203‌

Redeemed

......................................................................................................

(

80,458‌

)

Net

Increase

(Decrease)

$

(

34,355‌

)

Shares:

Sold

..........................................................................................................

4,906‌

Reinvested

.....................................................................................................

263‌

Redeemed

......................................................................................................

(

9,246‌

)

Net

Increase

(Decrease)

(

4,077‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

35,129‌

Reinvested

.....................................................................................................

4,266‌

Redeemed

......................................................................................................

(

62,782‌

)

Net

Increase

(Decrease)

$

(

23,387‌

)

Shares:

Sold

..........................................................................................................

3,648‌

Reinvested

.....................................................................................................

445‌

Redeemed

......................................................................................................

(

6,431‌

)

Net

Increase

(Decrease)

(

2,338‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

2,203‌

)

Total

Dividends

and

Distributions

$

(

2,203‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

4,266‌

)

Total

Dividends

and

Distributions

$

(

4,266‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

79

See

accompanying

notes.

Amounts

in

thousands

LargeCap

Growth

Account

I

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

(

807‌

)

$

(

1,753‌

)

Net

realized

gain

(loss)

on

investments

and

futures

...................................................................................

23,266‌

70,697‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

.....................................................

(

260,122‌

)

61,881‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

237,663‌

)

130,825‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

59,936‌

)

(

78,910‌

)

Total

Dividends

and

Distributions

(

59,936‌

)

(

78,910‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

30,436‌

42,384‌

Total

Increase

(Decrease)

in

Net

Assets

(

267,163‌

)

94,299‌

Net

Assets

Beginning

of

period

....................................................................................................................

706,656‌

612,357‌

End

of

period

..........................................................................................................................

$

439,493‌

$

706,656‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

42,909‌

Reinvested

.....................................................................................................

59,936‌

Redeemed

......................................................................................................

(

72,409‌

)

Net

Increase

(Decrease)

$

30,436‌

Shares:

Sold

..........................................................................................................

1,111‌

Reinvested

.....................................................................................................

1,847‌

Redeemed

......................................................................................................

(

1,879‌

)

Net

Increase

(Decrease)

1,079‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

49,902‌

Reinvested

.....................................................................................................

78,910‌

Redeemed

......................................................................................................

(

86,428‌

)

Net

Increase

(Decrease)

$

42,384‌

Shares:

Sold

..........................................................................................................

962‌

Reinvested

.....................................................................................................

1,526‌

Redeemed

......................................................................................................

(

1,661‌

)

Net

Increase

(Decrease)

827‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

59,936‌

)

Total

Dividends

and

Distributions

$

(

59,936‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

78,910‌

)

Total

Dividends

and

Distributions

$

(

78,910‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

80

See

accompanying

notes.

Amounts

in

thousands

LargeCap

S&P

500

Index

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

36,849‌

$

34,299‌

Net

realized

gain

(loss)

on

investments

and

futures

...................................................................................

158,691‌

346,848‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

.....................................................

(

765,203‌

)

389,815‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

569,663‌

)

770,962‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

323,890‌

)

(

293,077‌

)

Total

Dividends

and

Distributions

(

323,890‌

)

(

293,077‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

242,605‌

(

189,279‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

650,948‌

)

288,606‌

Net

Assets

Beginning

of

period

....................................................................................................................

3,209,249‌

2,920,643‌

End

of

period

..........................................................................................................................

$

2,558,301‌

$

3,209,249‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

410,935‌

$

9,528‌

Reinvested

..........................................................................................

318,523‌

5,367‌

Redeemed

...........................................................................................

(

496,565‌

)

(

5,183‌

)

Net

Increase

(Decrease)

$

232,893‌

$

9,712‌

Shares:

Sold

...............................................................................................

20,016‌

462‌

Reinvested

..........................................................................................

17,125‌

294‌

Redeemed

...........................................................................................

(

23,059‌

)

(

265‌

)

Net

Increase

(Decrease)

14,082‌

491‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

138,939‌

$

13,085‌

Reinvested

..........................................................................................

289,214‌

3,863‌

Redeemed

...........................................................................................

(

630,975‌

)

(

3,405‌

)

Net

Increase

(Decrease)

$

(

202,822‌

)

$

13,543‌

Shares:

Sold

...............................................................................................

5,730‌

556‌

Reinvested

..........................................................................................

12,121‌

165‌

Redeemed

...........................................................................................

(

25,846‌

)

(

149‌

)

Net

Increase

(Decrease)

(

7,995‌

)

572‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

318,523‌

)

$

(

5,367‌

)

Total

Dividends

and

Distributions

$

(

318,523‌

)

$

(

5,367‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

289,214‌

)

$

(

3,863‌

)

Total

Dividends

and

Distributions

$

(

289,214‌

)

$

(

3,863‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

81

See

accompanying

notes.

Amounts

in

thousands

LargeCap

S&P

500

Managed

Volatility

Index

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

2,198‌

$

2,028‌

Net

realized

gain

(loss)

on

investments

,

futures

and

options

and

swaptions

..........................................................

13,473‌

26,911‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

,

futures

and

options

and

swaptions

...........................

(

54,550‌

)

26,106‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

38,879‌

)

55,045‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

21,467‌

)

(

26,835‌

)

Total

Dividends

and

Distributions

(

21,467‌

)

(

26,835‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

1,606‌

(

23,427‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

58,740‌

)

4,783‌

Net

Assets

Beginning

of

period

....................................................................................................................

239,895‌

235,112‌

End

of

period

..........................................................................................................................

$

181,155‌

$

239,895‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

25,037‌

Reinvested

.....................................................................................................

21,467‌

Redeemed

......................................................................................................

(

44,898‌

)

Net

Increase

(Decrease)

$

1,606‌

Shares:

Sold

..........................................................................................................

1,620‌

Reinvested

.....................................................................................................

1,521‌

Redeemed

......................................................................................................

(

2,812‌

)

Net

Increase

(Decrease)

329‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

9,025‌

Reinvested

.....................................................................................................

26,835‌

Redeemed

......................................................................................................

(

59,287‌

)

Net

Increase

(Decrease)

$

(

23,427‌

)

Shares:

Sold

..........................................................................................................

492‌

Reinvested

.....................................................................................................

1,513‌

Redeemed

......................................................................................................

(

3,199‌

)

Net

Increase

(Decrease)

(

1,194‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

21,467‌

)

Total

Dividends

and

Distributions

$

(

21,467‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

26,835‌

)

Total

Dividends

and

Distributions

$

(

26,835‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

82

See

accompanying

notes.

Amounts

in

thousands

MidCap

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

1,079‌

$

(

121‌

)

Net

realized

gain

(loss)

on

investments

................................................................................................

18,967‌

70,194‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

193,890‌

)

83,393‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

173,844‌

)

153,466‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

64,874‌

)

(

44,926‌

)

Total

Dividends

and

Distributions

(

64,874‌

)

(

44,926‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

76,590‌

11,622‌

Total

Increase

(Decrease)

in

Net

Assets

(

162,128‌

)

120,162‌

Net

Assets

Beginning

of

period

....................................................................................................................

749,899‌

629,737‌

End

of

period

..........................................................................................................................

$

587,771‌

$

749,899‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

73,412‌

$

6,394‌

Reinvested

..........................................................................................

61,220‌

3,653‌

Redeemed

...........................................................................................

(

64,934‌

)

(

3,155‌

)

Net

Increase

(Decrease)

$

69,698‌

$

6,892‌

Shares:

Sold

...............................................................................................

1,254‌

109‌

Reinvested

..........................................................................................

1,170‌

71‌

Redeemed

...........................................................................................

(

1,107‌

)

(

56‌

)

Net

Increase

(Decrease)

1,317‌

124‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

42,968‌

$

8,836‌

Reinvested

..........................................................................................

42,787‌

2,139‌

Redeemed

...........................................................................................

(

82,470‌

)

(

2,638‌

)

Net

Increase

(Decrease)

$

3,285‌

$

8,337‌

Shares:

Sold

...............................................................................................

601‌

126‌

Reinvested

..........................................................................................

610‌

31‌

Redeemed

...........................................................................................

(

1,183‌

)

(

39‌

)

Net

Increase

(Decrease)

28‌

118‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

61,221‌

)

$

(

3,653‌

)

Total

Dividends

and

Distributions

$

(

61,221‌

)

$

(

3,653‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

42,787‌

)

$

(

2,139‌

)

Total

Dividends

and

Distributions

$

(

42,787‌

)

$

(

2,139‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

83

See

accompanying

notes.

Amounts

in

thousands

Principal

Capital

Appreciation

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

1,316‌

$

1,248‌

Net

realized

gain

(loss)

on

investments

................................................................................................

13,105‌

21,700‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

45,995‌

)

21,069‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

31,574‌

)

44,017‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

20,695‌

)

(

8,415‌

)

Total

Dividends

and

Distributions

(

20,695‌

)

(

8,415‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

12,101‌

(

7,069‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

40,168‌

)

28,533‌

Net

Assets

Beginning

of

period

....................................................................................................................

194,247‌

165,714‌

End

of

period

..........................................................................................................................

$

154,079‌

$

194,247‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

5,046‌

$

9,781‌

Reinvested

..........................................................................................

16,595‌

4,100‌

Redeemed

...........................................................................................

(

21,029‌

)

(

2,392‌

)

Net

Increase

(Decrease)

$

612‌

$

11,489‌

Shares:

Sold

...............................................................................................

146‌

292‌

Reinvested

..........................................................................................

544‌

137‌

Redeemed

...........................................................................................

(

600‌

)

(

72‌

)

Net

Increase

(Decrease)

90‌

357‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

4,872‌

$

8,993‌

Reinvested

..........................................................................................

7,194‌

1,221‌

Redeemed

...........................................................................................

(

26,775‌

)

(

2,574‌

)

Net

Increase

(Decrease)

$

(

14,709‌

)

$

7,640‌

Shares:

Sold

...............................................................................................

125‌

241‌

Reinvested

..........................................................................................

184‌

32‌

Redeemed

...........................................................................................

(

699‌

)

(

71‌

)

Net

Increase

(Decrease)

(

390‌

)

202‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

16,595‌

)

$

(

4,100‌

)

Total

Dividends

and

Distributions

$

(

16,595‌

)

$

(

4,100‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

7,194‌

)

$

(

1,221‌

)

Total

Dividends

and

Distributions

$

(

7,194‌

)

$

(

1,221‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

84

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2010

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

889‌

$

1,022‌

Net

realized

gain

(loss)

on

investments

................................................................................................

355‌

1,441‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

6,409‌

)

(

386‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

5,165‌

)

2,077‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

2,458‌

)

(

2,606‌

)

Total

Dividends

and

Distributions

(

2,458‌

)

(

2,606‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

3,468‌

2,002‌

Total

Increase

(Decrease)

in

Net

Assets

(

4,155‌

)

1,473‌

Net

Assets

Beginning

of

period

....................................................................................................................

37,297‌

35,824‌

End

of

period

..........................................................................................................................

$

33,142‌

$

37,297‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

10,245‌

Reinvested

.....................................................................................................

2,458‌

Redeemed

......................................................................................................

(

9,235‌

)

Net

Increase

(Decrease)

$

3,468‌

Shares:

Sold

..........................................................................................................

846‌

Reinvested

.....................................................................................................

225‌

Redeemed

......................................................................................................

(

794‌

)

Net

Increase

(Decrease)

277‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

7,457‌

Reinvested

.....................................................................................................

2,606‌

Redeemed

......................................................................................................

(

8,061‌

)

Net

Increase

(Decrease)

$

2,002‌

Shares:

Sold

..........................................................................................................

538‌

Reinvested

.....................................................................................................

195‌

Redeemed

......................................................................................................

(

587‌

)

Net

Increase

(Decrease)

146‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

2,458‌

)

Total

Dividends

and

Distributions

$

(

2,458‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

2,606‌

)

Total

Dividends

and

Distributions

$

(

2,606‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

85

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2020

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

3,912‌

$

5,371‌

Net

realized

gain

(loss)

on

investments

................................................................................................

2,229‌

11,453‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

34,528‌

)

442‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

28,387‌

)

17,266‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

16,757‌

)

(

14,360‌

)

Total

Dividends

and

Distributions

(

16,757‌

)

(

14,360‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

361‌

(

739‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

44,783‌

)

2,167‌

Net

Assets

Beginning

of

period

....................................................................................................................

196,334‌

194,167‌

End

of

period

..........................................................................................................................

$

151,551‌

$

196,334‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

20,769‌

Reinvested

.....................................................................................................

16,757‌

Redeemed

......................................................................................................

(

37,165‌

)

Net

Increase

(Decrease)

$

361‌

Shares:

Sold

..........................................................................................................

1,572‌

Reinvested

.....................................................................................................

1,431‌

Redeemed

......................................................................................................

(

2,888‌

)

Net

Increase

(Decrease)

115‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

26,050‌

Reinvested

.....................................................................................................

14,360‌

Redeemed

......................................................................................................

(

41,149‌

)

Net

Increase

(Decrease)

$

(

739‌

)

Shares:

Sold

..........................................................................................................

1,689‌

Reinvested

.....................................................................................................

954‌

Redeemed

......................................................................................................

(

2,674‌

)

Net

Increase

(Decrease)

(

31‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

16,757‌

)

Total

Dividends

and

Distributions

$

(

16,757‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

14,360‌

)

Total

Dividends

and

Distributions

$

(

14,360‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

86

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2030

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

4,457‌

$

6,898‌

Net

realized

gain

(loss)

on

investments

................................................................................................

5,151‌

15,985‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

54,937‌

)

6,546‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

45,329‌

)

29,429‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

22,810‌

)

(

12,163‌

)

Total

Dividends

and

Distributions

(

22,810‌

)

(

12,163‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

32,939‌

17,307‌

Total

Increase

(Decrease)

in

Net

Assets

(

35,200‌

)

34,573‌

Net

Assets

Beginning

of

period

....................................................................................................................

262,864‌

228,291‌

End

of

period

..........................................................................................................................

$

227,664‌

$

262,864‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

53,204‌

Reinvested

.....................................................................................................

22,810‌

Redeemed

......................................................................................................

(

43,075‌

)

Net

Increase

(Decrease)

$

32,939‌

Shares:

Sold

..........................................................................................................

4,035‌

Reinvested

.....................................................................................................

1,933‌

Redeemed

......................................................................................................

(

3,360‌

)

Net

Increase

(Decrease)

2,608‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

49,164‌

Reinvested

.....................................................................................................

12,163‌

Redeemed

......................................................................................................

(

44,020‌

)

Net

Increase

(Decrease)

$

17,307‌

Shares:

Sold

..........................................................................................................

3,203‌

Reinvested

.....................................................................................................

792‌

Redeemed

......................................................................................................

(

2,883‌

)

Net

Increase

(Decrease)

1,112‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

22,810‌

)

Total

Dividends

and

Distributions

$

(

22,810‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

12,163‌

)

Total

Dividends

and

Distributions

$

(

12,163‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

87

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2040

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

1,803‌

$

3,939‌

Net

realized

gain

(loss)

on

investments

................................................................................................

3,419‌

8,351‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

29,678‌

)

4,896‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

24,456‌

)

17,186‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

12,301‌

)

(

5,654‌

)

Total

Dividends

and

Distributions

(

12,301‌

)

(

5,654‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

20,640‌

15,503‌

Total

Increase

(Decrease)

in

Net

Assets

(

16,117‌

)

27,035‌

Net

Assets

Beginning

of

period

....................................................................................................................

134,172‌

107,137‌

End

of

period

..........................................................................................................................

$

118,055‌

$

134,172‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

28,579‌

Reinvested

.....................................................................................................

12,301‌

Redeemed

......................................................................................................

(

20,240‌

)

Net

Increase

(Decrease)

$

20,640‌

Shares:

Sold

..........................................................................................................

1,734‌

Reinvested

.....................................................................................................

838‌

Redeemed

......................................................................................................

(

1,210‌

)

Net

Increase

(Decrease)

1,362‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

28,876‌

Reinvested

.....................................................................................................

5,654‌

Redeemed

......................................................................................................

(

19,027‌

)

Net

Increase

(Decrease)

$

15,503‌

Shares:

Sold

..........................................................................................................

1,495‌

Reinvested

.....................................................................................................

289‌

Redeemed

......................................................................................................

(

979‌

)

Net

Increase

(Decrease)

805‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

12,301‌

)

Total

Dividends

and

Distributions

$

(

12,301‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

5,654‌

)

Total

Dividends

and

Distributions

$

(

5,654‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

88

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2050

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

719‌

$

2,075‌

Net

realized

gain

(loss)

on

investments

................................................................................................

1,860‌

4,722‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

15,580‌

)

2,429‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

13,001‌

)

9,226‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

6,812‌

)

(

2,689‌

)

Total

Dividends

and

Distributions

(

6,812‌

)

(

2,689‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

8,116‌

12,211‌

Total

Increase

(Decrease)

in

Net

Assets

(

11,697‌

)

18,748‌

Net

Assets

Beginning

of

period

....................................................................................................................

68,527‌

49,779‌

End

of

period

..........................................................................................................................

$

56,830‌

$

68,527‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

14,329‌

Reinvested

.....................................................................................................

6,811‌

Redeemed

......................................................................................................

(

13,024‌

)

Net

Increase

(Decrease)

$

8,116‌

Shares:

Sold

..........................................................................................................

886‌

Reinvested

.....................................................................................................

486‌

Redeemed

......................................................................................................

(

797‌

)

Net

Increase

(Decrease)

575‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

21,207‌

Reinvested

.....................................................................................................

2,689‌

Redeemed

......................................................................................................

(

11,685‌

)

Net

Increase

(Decrease)

$

12,211‌

Shares:

Sold

..........................................................................................................

1,120‌

Reinvested

.....................................................................................................

140‌

Redeemed

......................................................................................................

(

614‌

)

Net

Increase

(Decrease)

646‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

6,812‌

)

Total

Dividends

and

Distributions

$

(

6,812‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

2,689‌

)

Total

Dividends

and

Distributions

$

(

2,689‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

89

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2060

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

187‌

$

499‌

Net

realized

gain

(loss)

on

investments

................................................................................................

507‌

1,142‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

4,027‌

)

718‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

3,333‌

)

2,359‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

1,644‌

)

(

526‌

)

Total

Dividends

and

Distributions

(

1,644‌

)

(

526‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

2,828‌

3,979‌

Total

Increase

(Decrease)

in

Net

Assets

(

2,149‌

)

5,812‌

Net

Assets

Beginning

of

period

....................................................................................................................

17,280‌

11,468‌

End

of

period

..........................................................................................................................

$

15,131‌

$

17,280‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

5,272‌

Reinvested

.....................................................................................................

1,644‌

Redeemed

......................................................................................................

(

4,088‌

)

Net

Increase

(Decrease)

$

2,828‌

Shares:

Sold

..........................................................................................................

339‌

Reinvested

.....................................................................................................

121‌

Redeemed

......................................................................................................

(

263‌

)

Net

Increase

(Decrease)

197‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

6,857‌

Reinvested

.....................................................................................................

526‌

Redeemed

......................................................................................................

(

3,404‌

)

Net

Increase

(Decrease)

$

3,979‌

Shares:

Sold

..........................................................................................................

383‌

Reinvested

.....................................................................................................

29‌

Redeemed

......................................................................................................

(

189‌

)

Net

Increase

(Decrease)

223‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

1,644‌

)

Total

Dividends

and

Distributions

$

(

1,644‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

526‌

)

Total

Dividends

and

Distributions

$

(

526‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

90

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

Strategic

Income

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

666‌

$

878‌

Net

realized

gain

(loss)

on

investments

................................................................................................

176‌

1,141‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

4,788‌

)

(

641‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

3,946‌

)

1,378‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

2,017‌

)

(

1,855‌

)

Total

Dividends

and

Distributions

(

2,017‌

)

(

1,855‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

33‌

)

(

419‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

5,996‌

)

(

896‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

30,129‌

31,025‌

End

of

period

..........................................................................................................................

$

24,133‌

$

30,129‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

6,789‌

Reinvested

.....................................................................................................

2,017‌

Redeemed

......................................................................................................

(

8,839‌

)

Net

Increase

(Decrease)

$

(

33‌

)

Shares:

Sold

..........................................................................................................

600‌

Reinvested

.....................................................................................................

198‌

Redeemed

......................................................................................................

(

800‌

)

Net

Increase

(Decrease)

(

2‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

5,995‌

Reinvested

.....................................................................................................

1,855‌

Redeemed

......................................................................................................

(

8,269‌

)

Net

Increase

(Decrease)

$

(

419‌

)

Shares:

Sold

..........................................................................................................

467‌

Reinvested

.....................................................................................................

147‌

Redeemed

......................................................................................................

(

644‌

)

Net

Increase

(Decrease)

(

30‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

2,017‌

)

Total

Dividends

and

Distributions

$

(

2,017‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

1,855‌

)

Total

Dividends

and

Distributions

$

(

1,855‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

91

See

accompanying

notes.

Amounts

in

thousands

Real

Estate

Securities

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

2,434‌

$

1,972‌

Net

realized

gain

(loss)

on

investments

................................................................................................

5,568‌

12,636‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

54,789‌

)

39,587‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

46,787‌

)

54,195‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

12,433‌

)

(

12,779‌

)

Total

Dividends

and

Distributions

(

12,433‌

)

(

12,779‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

6,975‌

8,574‌

Total

Increase

(Decrease)

in

Net

Assets

(

52,245‌

)

49,990‌

Net

Assets

Beginning

of

period

....................................................................................................................

186,572‌

136,582‌

End

of

period

..........................................................................................................................

$

134,327‌

$

186,572‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

15,012‌

$

2,367‌

Reinvested

..........................................................................................

11,602‌

831‌

Redeemed

...........................................................................................

(

21,259‌

)

(

1,578‌

)

Net

Increase

(Decrease)

$

5,355‌

$

1,620‌

Shares:

Sold

...............................................................................................

726‌

116‌

Reinvested

..........................................................................................

617‌

44‌

Redeemed

...........................................................................................

(

1,029‌

)

(

79‌

)

Net

Increase

(Decrease)

314‌

81‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

21,019‌

$

2,630‌

Reinvested

..........................................................................................

12,078‌

701‌

Redeemed

...........................................................................................

(

26,908‌

)

(

946‌

)

Net

Increase

(Decrease)

$

6,189‌

$

2,385‌

Shares:

Sold

...............................................................................................

955‌

117‌

Reinvested

..........................................................................................

535‌

31‌

Redeemed

...........................................................................................

(

1,224‌

)

(

43‌

)

Net

Increase

(Decrease)

266‌

105‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

11,602‌

)

$

(

831‌

)

Total

Dividends

and

Distributions

$

(

11,602‌

)

$

(

831‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

12,078‌

)

$

(

701‌

)

Total

Dividends

and

Distributions

$

(

12,078‌

)

$

(

701‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

92

See

accompanying

notes.

Amounts

in

thousands

SAM

Balanced

Portfolio

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

13,290‌

$

14,424‌

Net

realized

gain

(loss)

on

investments

................................................................................................

21,497‌

87,788‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

152,302‌

)

(

8,821‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

117,515‌

)

93,391‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

96,305‌

)

(

26,472‌

)

Total

Dividends

and

Distributions

(

96,305‌

)

(

26,472‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

37,076‌

(

24,962‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

176,744‌

)

41,957‌

Net

Assets

Beginning

of

period

....................................................................................................................

744,944‌

702,987‌

End

of

period

..........................................................................................................................

$

568,200‌

$

744,944‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

9,783‌

$

11,338‌

Reinvested

..........................................................................................

74,784‌

21,521‌

Redeemed

...........................................................................................

(

67,909‌

)

(

12,441‌

)

Net

Increase

(Decrease)

$

16,658‌

$

20,418‌

Shares:

Sold

...............................................................................................

644‌

760‌

Reinvested

..........................................................................................

5,820‌

1,703‌

Redeemed

...........................................................................................

(

4,482‌

)

(

848‌

)

Net

Increase

(Decrease)

1,982‌

1,615‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

20,819‌

$

14,289‌

Reinvested

..........................................................................................

21,306‌

5,166‌

Redeemed

...........................................................................................

(

76,310‌

)

(

10,232‌

)

Net

Increase

(Decrease)

$

(

34,185‌

)

$

9,223‌

Shares:

Sold

...............................................................................................

1,185‌

817‌

Reinvested

..........................................................................................

1,200‌

295‌

Redeemed

...........................................................................................

(

4,324‌

)

(

594‌

)

Net

Increase

(Decrease)

(

1,939‌

)

518‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

74,784‌

)

$

(

21,521‌

)

Total

Dividends

and

Distributions

$

(

74,784‌

)

$

(

21,521‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

21,306‌

)

$

(

5,166‌

)

Total

Dividends

and

Distributions

$

(

21,306‌

)

$

(

5,166‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

93

See

accompanying

notes.

Amounts

in

thousands

SAM

Conservative

Balanced

Portfolio

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

4,537‌

$

4,257‌

Net

realized

gain

(loss)

on

investments

................................................................................................

334‌

16,868‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

34,462‌

)

(

2,486‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

29,591‌

)

18,639‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

20,687‌

)

(

6,255‌

)

Total

Dividends

and

Distributions

(

20,687‌

)

(

6,255‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

9,917‌

(

3,317‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

40,361‌

)

9,067‌

Net

Assets

Beginning

of

period

....................................................................................................................

203,656‌

194,589‌

End

of

period

..........................................................................................................................

$

163,295‌

$

203,656‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

11,034‌

$

4,448‌

Reinvested

..........................................................................................

16,969‌

3,718‌

Redeemed

...........................................................................................

(

21,575‌

)

(

4,677‌

)

Net

Increase

(Decrease)

$

6,428‌

$

3,489‌

Shares:

Sold

...............................................................................................

898‌

374‌

Reinvested

..........................................................................................

1,641‌

366‌

Redeemed

...........................................................................................

(

1,843‌

)

(

424‌

)

Net

Increase

(Decrease)

696‌

316‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

14,199‌

$

6,406‌

Reinvested

..........................................................................................

5,275‌

980‌

Redeemed

...........................................................................................

(

25,083‌

)

(

5,094‌

)

Net

Increase

(Decrease)

$

(

5,609‌

)

$

2,292‌

Shares:

Sold

...............................................................................................

1,072‌

487‌

Reinvested

..........................................................................................

392‌

74‌

Redeemed

...........................................................................................

(

1,870‌

)

(

393‌

)

Net

Increase

(Decrease)

(

406‌

)

168‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

16,969‌

)

$

(

3,718‌

)

Total

Dividends

and

Distributions

$

(

16,969‌

)

$

(

3,718‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

5,275‌

)

$

(

980‌

)

Total

Dividends

and

Distributions

$

(

5,275‌

)

$

(

980‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

94

See

accompanying

notes.

Amounts

in

thousands

SAM

Conservative

Growth

Portfolio

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

6,120‌

$

7,415‌

Net

realized

gain

(loss)

on

investments

................................................................................................

17,323‌

42,905‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

101,143‌

)

16,534‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

77,700‌

)

66,854‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

47,780‌

)

(

13,052‌

)

Total

Dividends

and

Distributions

(

47,780‌

)

(

13,052‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

36,398‌

(

3,590‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

89,082‌

)

50,212‌

Net

Assets

Beginning

of

period

....................................................................................................................

434,827‌

384,615‌

End

of

period

..........................................................................................................................

$

345,745‌

$

434,827‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

19,210‌

$

9,265‌

Reinvested

..........................................................................................

26,475‌

21,305‌

Redeemed

...........................................................................................

(

28,556‌

)

(

11,301‌

)

Net

Increase

(Decrease)

$

17,129‌

$

19,269‌

Shares:

Sold

...............................................................................................

890‌

462‌

Reinvested

..........................................................................................

1,484‌

1,217‌

Redeemed

...........................................................................................

(

1,374‌

)

(

573‌

)

Net

Increase

(Decrease)

1,000‌

1,106‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

17,827‌

$

13,856‌

Reinvested

..........................................................................................

7,539‌

5,513‌

Redeemed

...........................................................................................

(

39,869‌

)

(

8,456‌

)

Net

Increase

(Decrease)

$

(

14,503‌

)

$

10,913‌

Shares:

Sold

...............................................................................................

756‌

597‌

Reinvested

..........................................................................................

312‌

232‌

Redeemed

...........................................................................................

(

1,678‌

)

(

362‌

)

Net

Increase

(Decrease)

(

610‌

)

467‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

26,475‌

)

$

(

21,305‌

)

Total

Dividends

and

Distributions

$

(

26,475‌

)

$

(

21,305‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

7,539‌

)

$

(

5,513‌

)

Total

Dividends

and

Distributions

$

(

7,539‌

)

$

(

5,513‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

95

See

accompanying

notes.

Amounts

in

thousands

SAM

Flexible

Income

Portfolio

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

4,510‌

$

4,526‌

Net

realized

gain

(loss)

on

investments

................................................................................................

(

5,625‌

)

13,048‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

23,780‌

)

(

5,173‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

24,895‌

)

12,401‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

16,989‌

)

(

7,312‌

)

Total

Dividends

and

Distributions

(

16,989‌

)

(

7,312‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

(

8,945‌

)

4,501‌

Total

Increase

(Decrease)

in

Net

Assets

(

50,829‌

)

9,590‌

Net

Assets

Beginning

of

period

....................................................................................................................

193,852‌

184,262‌

End

of

period

..........................................................................................................................

$

143,023‌

$

193,852‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

6,065‌

$

6,472‌

Reinvested

..........................................................................................

12,901‌

4,088‌

Redeemed

...........................................................................................

(

27,189‌

)

(

11,282‌

)

Net

Increase

(Decrease)

$

(

8,223‌

)

$

(

722‌

)

Shares:

Sold

...............................................................................................

529‌

564‌

Reinvested

..........................................................................................

1,255‌

403‌

Redeemed

...........................................................................................

(

2,383‌

)

(

1,018‌

)

Net

Increase

(Decrease)

(

599‌

)

(

51‌

)

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

14,388‌

$

14,144‌

Reinvested

..........................................................................................

5,721‌

1,591‌

Redeemed

...........................................................................................

(

25,468‌

)

(

5,875‌

)

Net

Increase

(Decrease)

$

(

5,359‌

)

$

9,860‌

Shares:

Sold

...............................................................................................

1,101‌

1,082‌

Reinvested

..........................................................................................

437‌

123‌

Redeemed

...........................................................................................

(

1,944‌

)

(

453‌

)

Net

Increase

(Decrease)

(

406‌

)

752‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

12,901‌

)

$

(

4,088‌

)

Total

Dividends

and

Distributions

$

(

12,901‌

)

$

(

4,088‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

5,721‌

)

$

(

1,591‌

)

Total

Dividends

and

Distributions

$

(

5,721‌

)

$

(

1,591‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

96

See

accompanying

notes.

Amounts

in

thousands

SAM

Strategic

Growth

Portfolio

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

4,828‌

$

7,421‌

Net

realized

gain

(loss)

on

investments

................................................................................................

11,366‌

39,884‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

96,735‌

)

22,379‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

80,541‌

)

69,684‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

45,904‌

)

(

12,320‌

)

Total

Dividends

and

Distributions

(

45,904‌

)

(

12,320‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

36,424‌

15,973‌

Total

Increase

(Decrease)

in

Net

Assets

(

90,021‌

)

73,337‌

Net

Assets

Beginning

of

period

....................................................................................................................

428,947‌

355,610‌

End

of

period

..........................................................................................................................

$

338,926‌

$

428,947‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

18,207‌

$

9,105‌

Reinvested

..........................................................................................

23,671‌

22,233‌

Redeemed

...........................................................................................

(

26,033‌

)

(

10,759‌

)

Net

Increase

(Decrease)

$

15,845‌

$

20,579‌

Shares:

Sold

...............................................................................................

799‌

401‌

Reinvested

..........................................................................................

1,189‌

1,137‌

Redeemed

...........................................................................................

(

1,139‌

)

(

468‌

)

Net

Increase

(Decrease)

849‌

1,070‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

20,247‌

$

15,072‌

Reinvested

..........................................................................................

6,518‌

5,802‌

Redeemed

...........................................................................................

(

21,478‌

)

(

10,188‌

)

Net

Increase

(Decrease)

$

5,287‌

$

10,686‌

Shares:

Sold

...............................................................................................

758‌

566‌

Reinvested

..........................................................................................

239‌

216‌

Redeemed

...........................................................................................

(

811‌

)

(

391‌

)

Net

Increase

(Decrease)

186‌

391‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

23,671‌

)

$

(

22,233‌

)

Total

Dividends

and

Distributions

$

(

23,671‌

)

$

(

22,233‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

6,518‌

)

$

(

5,802‌

)

Total

Dividends

and

Distributions

$

(

6,518‌

)

$

(

5,802‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

97

See

accompanying

notes.

Amounts

in

thousands

Short-Term

Income

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

2,441‌

$

1,618‌

Net

realized

gain

(loss)

on

investments

and

futures

...................................................................................

(

1,285‌

)

198‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

.....................................................

(

6,708‌

)

(

2,809‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

5,552‌

)

(

993‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

1,814‌

)

(

2,932‌

)

Total

Dividends

and

Distributions

(

1,814‌

)

(

2,932‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

956‌

(

12,562‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

6,410‌

)

(

16,487‌

)

Net

Assets

Beginning

of

period

....................................................................................................................

140,532‌

157,019‌

End

of

period

..........................................................................................................................

$

134,122‌

$

140,532‌

Class

1

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

..........................................................................................................

$

42,597‌

Reinvested

.....................................................................................................

1,814‌

Redeemed

......................................................................................................

(

43,455‌

)

Net

Increase

(Decrease)

$

956‌

Shares:

Sold

..........................................................................................................

17,245‌

Reinvested

.....................................................................................................

756‌

Redeemed

......................................................................................................

(

17,747‌

)

Net

Increase

(Decrease)

254‌

Year

Ended

December

31,

2021

Dollars:

Sold

..........................................................................................................

$

34,540‌

Reinvested

.....................................................................................................

2,932‌

Redeemed

......................................................................................................

(

50,034‌

)

Net

Increase

(Decrease)

$

(

12,562‌

)

Shares:

Sold

..........................................................................................................

13,394‌

Reinvested

.....................................................................................................

1,150‌

Redeemed

......................................................................................................

(

19,407‌

)

Net

Increase

(Decrease)

(

4,863‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

1,814‌

)

Total

Dividends

and

Distributions

$

(

1,814‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

2,932‌

)

Total

Dividends

and

Distributions

$

(

2,932‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

98

See

accompanying

notes.

Amounts

in

thousands

SmallCap

Account

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Operations

Net

investment

income

(loss)

..........................................................................................................

$

563‌

$

(

127‌

)

Net

realized

gain

(loss)

on

investments

................................................................................................

(

470‌

)

35,323‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.................................................................

(

45,822‌

)

5,193‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

45,729‌

)

40,389‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...................................................................

(

32,260‌

)

(

7,482‌

)

Total

Dividends

and

Distributions

(

32,260‌

)

(

7,482‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..................................................................................

18,888‌

(

12,782‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

59,101‌

)

20,125‌

Net

Assets

Beginning

of

period

....................................................................................................................

224,387‌

204,262‌

End

of

period

..........................................................................................................................

$

165,286‌

$

224,387‌

Class

1

Class

2

Capital

Share

Transactions:

Year

Ended

December

31,

2022

Dollars:

Sold

...............................................................................................

$

8,534‌

$

1,094‌

Reinvested

..........................................................................................

30,668‌

1,592‌

Redeemed

...........................................................................................

(

22,009‌

)

(

991‌

)

Net

Increase

(Decrease)

$

17,193‌

$

1,695‌

Shares:

Sold

...............................................................................................

517‌

67‌

Reinvested

..........................................................................................

2,258‌

118‌

Redeemed

...........................................................................................

(

1,405‌

)

(

63‌

)

Net

Increase

(Decrease)

1,370‌

122‌

Year

Ended

December

31,

2021

Dollars:

Sold

...............................................................................................

$

17,504‌

$

1,948‌

Reinvested

..........................................................................................

7,164‌

318‌

Redeemed

...........................................................................................

(

38,216‌

)

(

1,500‌

)

Net

Increase

(Decrease)

$

(

13,548‌

)

$

766‌

Shares:

Sold

...............................................................................................

883‌

98‌

Reinvested

..........................................................................................

360‌

16‌

Redeemed

...........................................................................................

(

1,926‌

)

(

77‌

)

Net

Increase

(Decrease)

(

683‌

)

37‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2022

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

30,668‌

)

$

(

1,592‌

)

Total

Dividends

and

Distributions

$

(

30,668‌

)

$

(

1,592‌

)

Year

Ended

December

31,

2021

From

net

investment

income

and

net

realized

gain

on

investments

...................................................

$

(

7,164‌

)

$

(

318‌

)

Total

Dividends

and

Distributions

$

(

7,164‌

)

$

(

318‌

)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

99

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

Buffer

January

Account

Period Ended

December

31,

2022

(a)

Operations

Net

investment

income

(loss)

..................................................................................................................................

$

5‌

Net

realized

gain

(loss)

on

investments

........................................................................................................................

–‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

............................................................

(

43‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

38‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...........................................................................................

–‌

Total

Dividends

and

Distributions

–‌

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..........................................................................................................

26,619‌

Total

Increase

(Decrease)

in

Net

Assets

26,581‌

Net

Assets

Beginning

of

period

............................................................................................................................................

–‌

End

of

period

..................................................................................................................................................

$

26,581‌

Class

2

Capital

Share

Transactions:

Period Ended

December

31,

2022

(a)

Dollars:

Sold

..........................................................................................................

$

26,619‌

Net

Increase

(Decrease)

$

26,619‌

Shares:

Sold

..........................................................................................................

2,662‌

Redeemed

......................................................................................................

–‌

Net

Increase

(Decrease)

2,662‌

Dividends

and

Distributions

to

Shareholders:

Period Ended

December

31,

2022

(a)

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

–‌

Total

Dividends

and

Distributions

$

–‌

(a)

Period

from

December

28,

2022,

date

operations

commenced,

through

December

31,

2022.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

100

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

Buffer

July

Account

Period Ended

December

31,

2022

(a)

Operations

Net

investment

income

(loss)

..................................................................................................................................

$

91‌

Net

realized

gain

(loss)

on

investments

and

options

and

swaptions

...........................................................................................

49‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

............................................................

55‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

195‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...........................................................................................

(

91‌

)

Total

Dividends

and

Distributions

(

91‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..........................................................................................................

26,143‌

Total

Increase

(Decrease)

in

Net

Assets

26,247‌

Net

Assets

Beginning

of

period

............................................................................................................................................

–‌

End

of

period

..................................................................................................................................................

$

26,247‌

Class

2

Capital

Share

Transactions:

Period Ended

December

31,

2022

(a)

Dollars:

Sold

..........................................................................................................

$

29,487‌

Reinvested

.....................................................................................................

91‌

Redeemed

......................................................................................................

(

3,435‌

)

Net

Increase

(Decrease)

$

26,143‌

Shares:

Sold

..........................................................................................................

2,910‌

Reinvested

.....................................................................................................

9‌

Redeemed

......................................................................................................

(

335‌

)

Net

Increase

(Decrease)

2,584‌

Dividends

and

Distributions

to

Shareholders:

Period Ended

December

31,

2022

(a)

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

91‌

)

Total

Dividends

and

Distributions

$

(

91‌

)

(a)

Period

from

June

29,

2022,

date

operations

commenced,

through

December

31,

2022.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

101

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

Buffer

October

Account

Period Ended

December

31,

2022

(a)

Operations

Net

investment

income

(loss)

..................................................................................................................................

$

39‌

Net

realized

gain

(loss)

on

investments

and

options

and

swaptions

...........................................................................................

509‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

............................................................

601‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

1,149‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

...........................................................................................

(

39‌

)

Total

Dividends

and

Distributions

(

39‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

..........................................................................................................

16,868‌

Total

Increase

(Decrease)

in

Net

Assets

17,978‌

Net

Assets

Beginning

of

period

............................................................................................................................................

–‌

End

of

period

..................................................................................................................................................

$

17,978‌

Class

2

Capital

Share

Transactions:

Period Ended

December

31,

2022

(a)

Dollars:

Sold

..........................................................................................................

$

25,883‌

Reinvested

.....................................................................................................

39‌

Redeemed

......................................................................................................

(

9,054‌

)

Net

Increase

(Decrease)

$

16,868‌

Shares:

Sold

..........................................................................................................

2,562‌

Reinvested

.....................................................................................................

4‌

Redeemed

......................................................................................................

(

855‌

)

Net

Increase

(Decrease)

1,711‌

Dividends

and

Distributions

to

Shareholders:

Period Ended

December

31,

2022

(a)

From

net

investment

income

and

net

realized

gain

on

investments

..............................................................

$

(

39‌

)

Total

Dividends

and

Distributions

$

(

39‌

)

(a)

Period

from

September

29,

2022,

date

operations

commenced,

through

December

31,

2022.

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

102

1.

Organization

Principal

Variable

Contracts

Funds,

Inc.

(the

"Fund")

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

“1940

Act”)

as

an

open-end

management

investment

company

and

operates

as

a

series

fund

in

the

mutual

fund

industry.

The

financial

statements

for

Blue

Chip

Account,

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,

Global

Emerging

Markets

Account,

Government

&

High

Quality

Bond

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,

SmallCap

Account,

U.S.

LargeCap

Buffer

January

Account,

U.S.

LargeCap

Buffer

July

Account,

and

U.S.

LargeCap

Buffer

October

Account

series

of

the

Fund,

(known

as

the

“Funds”),

are

presented

herein.

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

are

referred

to

collectively

as

the

“Principal

LifeTime

Funds”.

SAM

Balanced

Portfolio,

SAM

Conservative

Balanced

Portfolio,

SAM

Conservative

Growth

Portfolio,

SAM

Flexible

Income

Portfolio,

and

SAM

Strategic

Growth

Portfolio

are

referred

to

collectively

as

the

“SAM

Portfolios”.

The

Funds

may

offer

up

to

three

classes

of

shares:

Class

1,

Class

2,

and

Class

3.

Each

of

the

Funds

is

an

investment

company

and

applies

specialized

accounting

and

reporting

under

Accounting

Standards

Codification

(“ASC”)

Topic

946,

Financial

Services

-

Investment

Companies

.

The

Funds

have

not

provided

financial

support

and

are

not

contractually

required

to

provide

financial

support

to

any

investee.

Effective

May

2,

2022,

International

Emerging

Markets

Account

changed

its

name

to

Global

Emerging

Markets

Account.

Effective

June

29,

2022,

the

initial

purchase

of

$1,020,000

of

Class

2

shares

of

U.S.

LargeCap

Buffer

July

Account

was

made

by

Principal

Financial

Services,

Inc.

(“PFSI”),

an

affiliate

of

the

Principal

Global

Investors,

LLC

(“the

Manager”).

Effective

September

29,

2022,

the

initial

purchase

of

$1,020,010

of

Class

2

shares

of

U.S.

LargeCap

Buffer

October

Account

was

made

by

PFSI,

an

affiliate

of

the

Manager.

Effective

December

28,

2022,

the

initial

purchase

of

$1,020,000

of

Class

2

shares

of

U.S.

LargeCap

Buffer

January

Account

was

made

by

PFSI,

an

affiliate

of

the

Manager.

All

classes

of

shares

for

each

of

the

Funds

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

Fund’s

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.

generally

accepted

accounting

principles

(“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

Funds:

Security

Valuation.

The

Funds

may

invest

in

other

series

of

the

Fund,

Principal

Funds,

Inc.,

and

other

investment

funds,

which

may

include

exchange-traded

funds,

money

market

funds

and

other

registered

open-end

investment

companies.

Investments

in

registered

open-

end

investment

companies,

other

than

exchange-traded

funds,

are

valued

at

the

respective

fund’s

closing

net

asset

value

per

share

on

the

day

of

valuation.

The

Funds

value

securities,

including

exchange-traded

funds,

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.

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

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

103

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

Funds’

net

asset

values

are

reflected

in

the

Funds’

net

asset

values

and

these

securities

are

valued

at

fair

value.

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

Funds

invest

in

foreign

securities

listed

on

foreign

exchanges

which

trade

on

days

on

which

the

Funds

do

not

determine

net

asset

values,

for

example,

weekends

and

other

customary

national

U.S.

holidays,

the

Funds’

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

Funds’

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

Funds

held

securities

denominated

in

foreign

currencies

that

exceeded

5%

of

net

assets

of

the

respective

fund

as

of

December

31,

2022:

Income

and

Investment

Transactions.

The Funds

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

Funds

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 Funds

are

informed

of

the

ex-dividend

date.

Interest

income

is

recognized

on

an

accrual

basis.

Payment

in

kind

("PIK") income

is

computed

on

the

value

of the

securities

received

at

the

contractual

rate

specified

in

each

loan

agreement. 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

Diversified

International

Account

Euro

18.7%

British

Pound

Sterling

15.5

Japanese

Yen

14.0

Canadian

Dollar

9.8

Global

Emerging

Markets

Account

Hong

Kong

Dollar

25.3%

Indian

Rupee

13.4

South

Korean

Won

11.4

New

Taiwan

Dollar

10.3

Brazilian

Real

6.0

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

104

other

than

par.

The Funds

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.

Distributions

received

from

other

series

of

the

Fund

and

other

investment

companies

(collectively,

"Underlying

Funds")

are

recorded

in

accordance

with

the

character

of

distributions

as

designated

by

the

Underlying

Funds.

Distributions

received

from

Real

Estate

Investment

Trusts

("REITs")

may

be

characterized

as

ordinary

income,

capital

gain,

or

a

return

of

capital

to

the

Funds.

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 fund

are

charged

to

that

fund.

Other

expenses

not

directly

attributed

to

a

particular fund

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 Funds

bear

directly,

each

of

the Funds

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 Funds

may

own

different

proportions

of

the Underlying

Funds

at

different

times,

the

amount

of

expense

incurred

indirectly

by

each Fund

will

vary.

Expenses

included

in

the

statements

of

operations

and

financial

highlights

of

the Funds 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,

tax

straddles,

mortgage-backed

securities,

certain

preferred

securities,

swap

agreements,

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

Funds

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

Funds’

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.

The

Funds

recognize

interest

and

penalties,

if

any,

related

to

unrecognized

tax

positions

as

tax

expense

on

the

statements

of

operations. During

the year

ended

December

31,

2022,

the

Funds

did

not

record

any

such

tax

benefit

or

expense

in

the

accompanying

financial

statements.

The

statute

of

limitations

remains

open

for

the

last

three

years,

once

a

return

is

filed.

No

examinations

are

in

progress

at

this

time.

Foreign

Taxes.

Certain

of

the

Funds

are

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

they

invest.

Foreign

income

taxes

are

accrued

by

the

Funds

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

Funds

have

filed

additional

tax

reclaims

for

taxes

withheld

in

prior

years.

Due

to

the

uncertainty

regarding

collectability

and

timing

of

these

reclaims,

among

other

factors,

a

corresponding

receivable

will

only

be

recognized

when

the

tax

position

meets

the

"more

likely

than

not"

threshold.

Any

tax

reclaims

received

are

included

in

dividend

income

on

the

statements

of

operations.

Gains

realized

upon

the

disposition

of

certain

foreign

securities

held

by

certain

Funds

may

be

subject

to

capital

gains

tax,

payable

prior

to

the

repatriation

of

sale

proceeds.

The

tax

is

computed

on

certain

net

realized

gains

and,

if

any,

is

shown

on

the

statements

of

operations.

Realized

losses

in

excess

of

gains

may

be

carried

forward

to

offset

future

gains.

In

addition,

the

Funds

accrue

an

estimated

tax

liability

for

future

gains

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

105

on

certain

foreign

securities.

Any

foreign

tax

refund

receivables and

any

accrued

foreign

tax

liabilities

are

shown

on

the

statements

of

assets

and

liabilities.

At

December

31,

2022,

the

Funds’

had

foreign

tax

refund

receivables

and

accrued

foreign

tax

liabilities

as

follows

(amounts

in

thousands):

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

London

Interbank

Offered

Rate

("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.

In

December

2022,

the

FASB

issued

ASU

No.

2022-06

Reference

Rate

Reform

(Topic

848):

Deferral

of

the

Sunset

Date

of

Topic

848

which

updates

and

clarifies

ASU

No.

2020-04.

The amendments

in

this ASU

defer

the

sunset

date

of

Topic

848

from

December

31,

2022,

to

December

31,

2024. Management expects

the impact

of

these

ASUs will

not

have

a

material

impact

on

the

Funds'

financial

statements.

In

June

2022,

the

FASB

issued

ASU

No.

2022-03

Fair

Value

Measurement

(Topic

820);

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions,

which

provides

clarifying

guidance

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

is

not

considered

in

measuring

fair

value.

The

ASU

is

effective

for

fiscal

years

beginning

after

December

15,

2023,

and

interim

periods

within

those

fiscal

years.

Management

expects

the

ASU

will

not

have

a

material

impact

on

the

Funds’

financial

statements.

3.

Operating

Policies

Borrowings.

Pursuant

to

an

exemptive

order

issued

by

the

Securities

and

Exchange

Commission

(the

"SEC"),

the

Funds

and

other

registered

investment

companies

managed

by

the

Manager

may

participate

in

an

interfund

lending

facility

(“Facility”).

The

Facility

allows

the Funds

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.

Effective

April

18,

2022,

interest

paid

and

received

on

borrowings

is

the

average

of

the

current

repurchase

agreement

rate

and

the

bank

loan

rate

plus

the

applicable

margin

of

1.00%.

The

bank

loan

rate

equals

the

higher

of

(

i

)

the

Federal

Funds

Rate

or

(ii)

the

secured

overnight

financing

rate

plus

.10%

(“Adjusted

SOFR”).

If

the

Federal

Funds

Rate

or

the

Adjusted

SOFR

is

less

than

zero,

it

shall

be

deemed

to

be

zero

for

purposes

of

calculating

such

rate.

Prior

to

April

18,

2022,

the

bank

loan

rate

equaled

the

higher

of

(

i

)

the

Federal

Funds

Rate

or

(ii)

the

One

Month

LIBOR

rate

plus

the

applicable

margin

of

1.25%.

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. 

As

of

December

31,

2022,

Principal

Capital

Appreciation

Account

had

an

outstanding

loan

of

$3,100,000

to

the

Facility while

U.S.

LargeCap

Buffer

July

Account

and

U.S.

LargeCap

Buffer

October

Account

had

outstanding

borrowings

of

$1,805,000

and

$2,200,000,

respectively,

from

the

Facility.

During

the year

ended

December

31,

2022, Funds

lending

to

the

Facility

were

as

follows

(amounts

in

thousands):

Foreign

Tax

Refund

Receivable

Accrued

Foreign

Tax

Liability

Diversified

International

Account

$

—

$

114

Global

Emerging

Markets

Account

11

314

Average

Daily

Amount

Loaned

Weighted

Average

Annual

Interest

Rate

Blue

Chip

Account

$

—

3.14

%

Bond

Market

Index

Account

697

3.39

Core

Plus

Bond

Account

34

1.82

Diversified

Balanced

Volatility

Control

Account

54

1.63

Diversified

Growth

Volatility

Control

Account

386

1.65

Diversified

International

Account

19

2.32

Equity

Income

Account

69

3.06

Global

Emerging

Markets

Account

17

2.96

Government

&

High

Quality

Bond

Account

12

2.20

LargeCap

Growth

Account

I

41

3.25

LargeCap

S&P

500

Index

Account

401

2.63

LargeCap

S&P

500

Managed

Volatility

Index

Account

150

3.08

MidCap

Account

6

3.54

Principal

Capital

Appreciation

Account

56

4.21

Real

Estate

Securities

Account

19

2.76

Short-Term

Income

Account

17

1.30

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

106

During

the year

ended

December

31,

2022,

Funds

borrowing

from

the

Facility

were

as

follows

(amounts

in

thousands): 

In

addition,

the

Funds

(with

the

exception

of

U.S.

LargeCap

Buffer

January

Account,

U.S.

LargeCap

Buffer

July

Account,

and

U.S.

LargeCap

Buffer

October

Account)

participate

with

other

registered

investment

companies

managed

by

the

Manager

in

an

unsecured

joint

line

of

credit

with

a

group

of

financial

institutions

which

allows

the

participants

to

borrow

up

to

$250

million,

collectively.

Borrowings

are

made

solely

to

facilitate

the

handling

of

unusual

and/or

unanticipated

short-term

cash

requirements. Effective

April

18,

2022,

the

line

of

credit

is

available

under

a

group

of

revolving

financial

institutions

and

lending

is

carried

out

with

unaffiliated

financial

institutions.

Effective

April

18,

2022,

interest

is

charged

to

each

participant,

based

on

its

borrowings,

at

a

rate

equal

to

the

higher

of

the

Federal

Funds

Rate

or

the

Adjusted

SOFR

plus

1.00%.

Prior

to

April

18,

2022,

interest

was

charged

at

an

annual

rate

equal

to

the

higher

of

the

Federal

Funds

Rate

or

the

One

Month

LIBOR

rate

plus

1.25%.

If

the

Federal

Funds

Rate

or

the

Adjusted

SOFR

is

less

than

zero,

it

shall

be

deemed

to

be

zero

for

purposes

of

calculating

such

rate.

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

participant

based

on

average

net

assets.

The

interest

expense

associated

with

these

borrowings

is

included

in

other

expenses

on

the

statements

of

operations.

As

of December

31,

2022,

none

of

the

Funds

had

outstanding

borrowings

against

the

line

of

credit.

During

the year ended

December

31,

2022,

Funds

borrowing

against

the

line

of

credit

were

as

follows

(amounts

in

thousands):

Contingent

Convertible

Securities.

As

footnoted

in

the

schedules

of

investments, certain

of

the

Funds

invest

in

contingent

convertible securities

(“

CoCos

”).

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

a

fund

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

fund's

complete

loss

on

an

investment

in

CoCos

with

no

chance

of

recovery

even

if

the

issuer

remains

in

existence.

Average

Daily

Amount

Loaned

Weighted

Average

Annual

Interest

Rate

SmallCap

Account

$

13

2.00

%

Average

Daily

Amount

Borrowed

Weighted

Average

Annual

Interest

Rate

Blue

Chip

Account

$

4

1.78

%

Diversified

Balanced

Volatility

Control

Account

3

3.63

Diversified

Growth

Volatility

Control

Account

20

3.60

Diversified

International

Account

6

2.79

LargeCap

S&P

500

Index

Account

437

2.40

MidCap

Account

16

1.31

Short-Term

Income

Account

4

2.63

SmallCap

Account

3

2.49

U.S.

LargeCap

Buffer

July

Account

22

4.73

U.S.

LargeCap

Buffer

October

Account

200

4.19

Average

Daily

Amount

Borrowed

Weighted

Average

Annual

Interest

Rate

MidCap

Account

$

1

1.39

%

SAM

Flexible

Income

Portfolio

5

3.43

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

107

Counterparties.

The

Funds

may

be

exposed

to

counterparty

risk,

or

the

risk

that

another

party

with

which

the

Funds

have

unsettled

or

open

transactions

will

fail

to

perform

on

their

commitment.

To

the

extent

that

unpaid

amounts

owed

to

the

Funds

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

Funds

in

the

form

of

cash

or

cash

equivalents

equal

in

value

to

the

unpaid

amount

owed

to

the

Funds.

If

the

unpaid

amount

owed

to

the

Funds

subsequently

decreases,

the

Funds

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.

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

are

shown

gross

on

the

statements

of

assets

and

liabilities.

Derivative

instruments

also

include

collateral

provisions.

Collateral

received

and

pledged

are

generally

settled

daily

with

each

counterparty.

As

of

December

31,

2022

,

none

of

the

Funds

had

financial

assets

and

liabilities

subject

to

Master

Netting

Agreements

or

similar

agreements.

Cross

Trades. 

The

Funds

ma

y

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

a

fund

may

be

considered

affiliated

with

any

portfolio

for

which

the

fund's

sub-advisor

acts

as

an

investment

advisor.

Such

transactions

are

permissible

provided

that

the

conditions

of

Rule

17a-7

under

the

1940

Act

are

satisfied.

For

the

year ended

December

31

,

2022,

none

of

the

Funds

had

material

cross

trades.

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 Funds may

pledge

cash

to

a

broker

for

securities

sold

short.

As

of

December

31,

2022,

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 Funds

by

the

broker

is

received

in

the

fund’s

custodian

account.

As

of

December

31,

2022,

deposits

from

counterparty

were

as

follows

(amounts

in

thousands):

Foreign

Currency

Contracts.

Certain

of

the

Funds

may

be

subject

to

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

such

Funds’

investment

objectives.

The

Funds

may

use

foreign

currency

contracts

to

gain

exposure

to,

or

hedge

against

changes

in

the

value

FCM

(Futures

and

Cleared

Swaps)

MSFTA

(Forward

Currency

Contracts

and

TBA

Securities)

Options

Total

Deposits

with

Counterparty

Bond

Market

Index

Account

$

—

$

15

$

—

$

15

Core

Plus

Bond

Account

—

13

—

13

Government

&

High

Quality

Bond

Account

292

7

—

299

LargeCap

Growth

Account

I

95

—

—

95

LargeCap

S&P

500

Managed

Volatility

Index

Account

—

—

1,408

1,408

Short-Term

Income

Account

18

—

—

18

MSFTA

(Forward

Currency

Contracts

and

TBA

Securities)

Bond

Market

Index

Account

$

153

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

108

of

foreign

currencies.

Certain

of

the

Funds

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

Funds

as

an

unrealized

gain

or

loss.

When

the

contract

is

closed,

the

Funds

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

Funds’

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

Funds

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

or

other

respective

currency. 

Futures

Contracts.

The Funds

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 Funds

(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

Funds,

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,

typically a

fund 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 fund

as

a

variation

margin

receivable

or

payable

on

financial

derivative

instruments.

For

those

contracts

where

daily

variation

margin

payments

are

not

received

from

or

paid

to

the

broker,

the

cumulative

unrealized

gains

or

losses

are

included

in

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

included

as

a

component

of

total

distributable

earnings

(accumulated

loss)

on

the

statements

of

assets

and

liabilities.

When

the

contracts

are

closed,

the fund

recognizes

a

realized

gain

or

loss

equal

to

the

difference

between

the

proceeds

from,

or

cost

of,

the

closing

transaction

and

the

fund’s

cost

basis

in

the

contract.

There

is

minimal

counterparty

credit

risk

to

the Funds

because

futures

are

exchange

traded

and

the

exchange’s

clearinghouse,

as

counterparty

to

all

exchange

traded

futures,

guarantees

the

futures

against

default.

Long

equity

futures

contracts

are

used

to

obtain

market

exposure

for

the

cash

balances

that

are

maintained

by

certain

of

the

Funds

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,

Government

&

High

Quality

Bond

Account,

and

Short-Term

Income

Account.

The

notional

values

of

the

futures

contracts

will

vary

in

accordance

with

changing

duration

of

these

funds.

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

Funds

has

valued

the

investments.

This

may

have

an

adverse

effect

on

each

of

the

Funds’

ability

to

dispose

of

particular

illiquid

securities

at

fair

value

and

may

limit

each

of

the

Funds’

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

Funds

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

Funds

would

not

receive

the

principal

until

maturity.

Mortgage

Dollar

Rolls.

Certain

of

the

Funds

may

enter

into

mortgage-dollar-roll

transactions

on

TBA

securities,

in

which

the

Funds

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

Funds

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

Funds

treat

mortgage-dollar-roll

transactions

as

purchases

and

sales;

as

such,

these

transactions

may

increase

the

Funds’

portfolio

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

109

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.

The

Funds

may

write

and

purchase

call

and

put

options

on

securities

and

on

securities

indices

to

hedge

against

a

decline

in

the

value

of

securities

owned

or

an

increase

in

the

price

of

securities

that

the

Funds

plan

to

purchase,

or

to

generate

additional

revenue.

Exchange-traded

options

may

be

closed

out

only

on

an

exchange

that

generally

provides

a

liquid

secondary

market

for

an

option

of

the

same

series.

Over

the

Counter

(“OTC”)

options

differ

from

exchange-traded

options

in

that

they

are

two-party

contracts,

with

price

and

other

terms

negotiated

between

buyer

and

seller,

and

generally

do

not

have

as

much

market

liquidity

as

exchange-traded

options.

An

OTC

option

(an

option

not

traded

on

an

established

exchange)

may

be

closed

out

only

by

agreement

with

the

other

party

to

the

original

option

transaction.

FLexible

EXchange

(“FLEX”)

options

are

customized

options

contracts

available

through

national

securities

exchanges

that

are

guaranteed

for

settlement

by

the

Options

Clearing

Corporation

(“OCC”),

a

market

clearinghouse.

FLEX

options

provide

investors

with

the

ability

to

customize

terms

of

an

option,

including

exercise

prices,

exercise

styles,

and

expiration

dates

while

achieving

price

discovery

in

price

competitive,

transparent

auction

markets

and

avoiding

the

counterparty

exposure

of

the

OTC

options

positions.

All

FLEX

options

in

the

Funds

are

European-style

options

that

can

only

be

exercised

at

the

expiration

date

of

the

option.

Writing

put

options

tends

to

increase

a

fund’s

exposure

to

the

underlying

instrument.

Writing

call

options

tends

to

decrease

a

fund’s

exposure

to

the

underlying

instrument.

When

a

fund

writes

a

call

or

put

option,

an

amount

equal

to

the

premium

received

is

recorded

as

a

liability

and

subsequently

marked

to

market

to

reflect

the

current

value

of

the

option

written.

These

liabilities

are

reflected

as

options

contracts

written

on

the

statements

of

assets

and

liabilities.

Premiums

received

from

writing

options

which

expire

are

treated

as

realized

gains.

Premiums

received

from

writing

options

which

are

exercised

or

closed

are

added

to

the

proceeds

or

offset

against

amounts

paid

on

the

underlying index

to

determine

the

realized

gain

or

loss.

A

fund,

as

a

writer

of

an

option,

has

no

control

over

whether

the

underlying

index

may

be

sold

(call)

or

purchased

(put)

and

as

a

result

bears

the

market

risk

of

an

unfavorable

change

in

the

price

of

the

index

underlying

the

written

option.

There

is

the

risk a

fund may

not

be

able

to

enter

into

a

closing

transaction

because

of

an

illiquid

market.

The

maximum

potential

amount

of

future

payments

(undiscounted)

that

a

fund 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

schedules

of

investments. A

fund may

also

purchase

put

and

call

options.

Purchasing

call

options

tends

to

increase a

fund's exposure

to

the

underlying

instrument.

Purchasing

put

options

tends

to

decrease a

fund's

exposure

to

the

underlying

instrument.

A

fund pays

a

premium

which

is

included

on

the fund's

statements

of

assets

and

liabilities

as

an

investment

and

subsequently

marked

to

market

to

reflect

the

current

value

of

the

option.

Premiums

paid

for

purchasing

options

which

expire

are

treated

as

realized

losses.

The

risk

associated

with

purchasing

put

and

call

options

is

limited

to

the

premium

paid.

Premiums

paid

for

purchasing

options

which

are

exercised

or

closed

are

added

to

the

amounts

paid

or

offset

against

the

proceeds

on

the

underlying

index

transaction

to

determine

the

realized

gain

or

loss.

Details

of

options

contracts

open

at year

end

are

included

in

the

Funds'

schedules

of

investments.

Private

Investments

in

Public

Equity.

The

Funds

may

invest

in

private

investments

in

public

equity

(“PIPEs”)

which

are

issued

by

a

company

in

the

secondary

market

as

a

means

of

raising

capital.

In

connection

with

PIPEs,

the

Funds

may

enter

into

unfunded

commitments.

Commitments

may

be

subject

to

various

contingencies

and

are

recognized

when

the

commitment

is

legally

binding.

These

contingencies

are

considered

in

the

valuation

of

the

commitments.

The

Funds

are

obligated

to

fund

these

commitments

when

the

contingencies

are

met

and

therefore,

the

Funds

must

have

funds

sufficient

to

cover

their

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

unfunded

commitments

on

the

statements

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statements

of

operations,

as

applicable.

As

of

year

end

,

the

commitments

are

typically

categorized

as

Level

2

within

the

disclosure

hierarchy.

As of

December

31,

2022,

the

Funds

had

no

unfunded

commitments

in

connection

with

PIPEs. 

Rebates.

Subject

to

best

execution,

the

Funds

may

direct

certain

portfolio

transactions

to

brokerage

firms

that,

in

turn,

have

agreed

to

rebate

a

portion

of

the

related

brokerage

commission

to

the

Funds

in

cash.

Commission

rebates

are

included

as

a

component

of

realized

gain

from

investment

transactions

in

the

statements

of

operations. 

Repurchase

Agreements.

The

Funds

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

Funds

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

Funds

could

experience

delays

in

the

realization

of

the

collateral. 

Restricted

Securities.

Certain

of

the

Funds

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. 

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

110

Securities

Lending.

As

footnoted

in

the

schedules

of

investments,

certain

of

the

Funds

may

lend

portfolio

securities

to

approved

brokerage

firms

to

earn

additional

income.

The

Funds

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

Funds

and

any

additional

required

collateral

is

delivered

to

the

Funds

on

the

next

business

day.

The

transactions

are

accounted

for

as

secured

borrowings

and

the

remaining

contractual

maturity

is

overnight

and

continuous

for

all

securities. The

cash

collateral

received

is

usually

invested

in

an

SEC-registered

money

market

mutual

fund

and

the

Funds

could

realize

a

loss

on

such

investments.

Further,

the

Funds

could

experience

a

delay

in

recovering their

securities

and

possible

loss

of

income

or

value

if

the

borrower

fails

to

return

them.

Securities

lending

income,

net

of

related

fees,

is

shown

on

the

statements

of

operations.

Senior

Floating

Rate

Interests.

The

Funds

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”),

and

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

fund

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

(or

such

successor

if

no

longer

available).

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

Funds

may

also

enter

into

unfunded

loan

commitments.

All

or

a

portion

of

the

loan

commitments

may

be

unfunded.

The

Funds

are

obligated

to

fund

these

loan

commitments

at

the

Borrower’s

discretion.

Therefore,

the

Funds

must

have

funds

sufficient

to

cover

their

contractual

obligation.

Unfunded

loan

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

unfunded

commitments

on

the

statements

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statements

of

operations,

as

applicable.

As

of

period

end,

the

unfunded

loan

commitments

are

categorized

as

Level

2

within

the

disclosure

hierarchy.

As

of

December

31,

2022

,

the

Funds

had

no

unfunded

loan

commitments.

Short

Sales.

Certain

of

the

Funds

may

enter

into

short

sales

transactions.

A

short

sale

is

a

transaction

in

which

a

fund

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

fund

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

and

liabilities.

The

fund

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.

A

fund

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

fund

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

fund

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

would

be

included

as

short

sale

fees

on

the

statements

of

operations.

None

of

the

Funds

entered

into

short

sales

transactions

during

the

year

ended

December

31,

2022.

Swap

Agreements.

Certain

of

t

he

Funds

may

enter

into in swap

agreements

.

Swap

agreements

are

negotiated

agreements

between

a

fund 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.

A

fund 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

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

111

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

primary

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

which

is

included

as

a

component

of

total

distributable

earnings

(accumulated

loss)

on the

statements

of

assets

and

liabilities.

Upon

termination

of

swap

agreements,

the Funds

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 Funds

and

any

counterparty

are

required

to

maintain

an

agreement

that

requires

the Funds

and

that

counterparty

to

monitor

the

net

fair

value

of

all

derivative

transactions

entered

into

pursuant

to

the

contract

between

the Funds

and

such

counterparty.

If

the

net

fair

value

of

such

derivatives

transactions

between

the Funds

and

that

counterparty

exceeds

a

certain

threshold

(as

defined

in

the

agreement),

the Funds

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 Funds

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, a

fund would

add

leverage

to

its

portfolio

because,

in

addition

to

its

total

net

assets,

a

fund would

be

subject

to

investment

exposure

on

the

notional

amount

of

the

swap.

If a

fund is

a

seller

of

protection

and

a

credit

event

occurs,

as

defined

under

the

terms

of

that

particular

swap

agreement,

the fund

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 a fund

is

a

buyer

of

protection

and

a

credit

event

occurs,

as

defined

under

the

terms

of

that

particular

swap

agreement,

a

fund 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.

A

fund may

use

credit

default

swaps

on

credit

indices

to

hedge

a

portfolio

of

credit

default

swaps

or

bonds,

which

is

less

expensive

than

it

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

112

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

a

fund 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 December

31,

2022

for

which a

fund

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 a

fund 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

Funds

may

trade

portfolio

securities

on

a

TBA

or

when-issued

basis.

In

a

TBA

or

when-issued

transaction,

the

Funds

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

Funds,

normally

15

to

30

days

later.

These

transactions

are

subject

to

market

fluctuations

and

their

current

value

is

determined

in

the

same

manner

as

for

other

portfolio

securities. 

Underlying

Funds.

The

performance

and

risks

of

each

Principal

LifeTime

Fund,

each

SAM

Portfolio,

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

invests.

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.,

Principal

Exchange-Traded

Funds,

and

other

asset

allocation

programs.

The

Manager

is

committed

to

minimizing

the

potential

impact

of

underlying

fund

risk

to

the

extent

consistent

with

pursuing

the

investment

objectives

of

the

funds

of

funds

which

it

manages.

Each

may

face

conflicts

of

interest

in

fulfilling

its

responsibilities

to

all

such

funds.

Shareholder

reports

for

Principal

Funds,

Inc.

and

Principal

Exchange-Traded

Funds

can

be

found

at

www.PrincipalAM.com.

As

of

December

31,

2022,

series

of

the

Fund

owned

the

following

percentages,

in

the

aggregate,

of

the

outstanding

shares

of

the

Funds

listed

below:

U.S.

Government

Agencies

or

Government-Sponsored

Enterprises.

Certain

of

the

Funds

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

Funds’

shares.

Some

U.S.

Government

securities

such

Total

Percentage

of

Outstanding

Shares

Owned

Bond

Market

Index

Account

98.88

%

Equity

Income

Account

27.26

Government

&

High

Quality

Bond

Account

25.35

LargeCap

S&P

500

Index

Account

79.11

LargeCap

S&P

500

Managed

Volatility

Index

Account

100.00

MidCap

Account

12.57

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

113

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):

Asset

Derivatives

December

31,

2022

Liability

Derivatives

December

31,

2022

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)

$

5

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

169

*

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

16

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

31

*

Total

$

21

*

$

200

*

Government

&

High

Quality

Bond

Account

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

79

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

106

*

LargeCap

Growth

Account

I

Equity

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

41

*

LargeCap

S&P

500

Index

Account

Equity

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

2,278

*

LargeCap

S&P

500

Managed

Volatility

Index

Account

Equity

Contracts

Investment

in

Securities

-at

value

$

1,133

Payables,

Total

distributable

earnings

(accumulated

loss)

$

706

*

Short-Term

Income

Account

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

7

*

U.S.

LargeCap

Buffer

January

Account

Equity

Contracts

Investment

in

Securities

-at

value

$

5,035

Payables,

Total

distributable

earnings

(accumulated

loss)

$

1,573

U.S.

LargeCap

Buffer

July

Account

Equity

Contracts

Investment

in

Securities

-at

value

$

4,346

Payables,

Total

distributable

earnings

(accumulated

loss)

$

899

U.S.

LargeCap

Buffer

October

Account

Equity

Contracts

Investment

in

Securities

-at

value

$

3,071

Payables,

Total

distributable

earnings

(accumulated

loss)

$

810

*

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.

December

31,

2022

114

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

Swap

agreements

$

59

$

(158)

Interest

Rate

Contracts

Futures

contracts

$

(1,373)

$

(35)

Total

$

(1,314)

$

(193)

Diversified

Balanced

Volatility

Control

Account

Equity

Contracts

Futures

contracts

$

(337)

$

—

Diversified

Growth

Volatility

Control

Account

Equity

Contracts

Futures

contracts

$

563

$

—

Government

&

High

Quality

Bond

Account

Interest

Rate

Contracts

Futures

contracts

$

(1,716)

$

(72)

LargeCap

Growth

Account

I

Equity

Contracts

Futures

contracts

$

(437)

$

(105)

LargeCap

S&P

500

Index

Account

Equity

Contracts

Futures

contracts

$

(8,795)

$

(5,076)

LargeCap

S&P

500

Managed

Volatility

Index

Account

Equity

Contracts

Investment

transactions/Investments*

$

(98)

$

1,146

Futures

contracts

$

(608)

$

(262)

Options

and

swaptions

$

1,246

$

(1,004)

Total

$

540

$

(120)

Short-Term

Income

Account

Interest

Rate

Contracts

Futures

contracts

$

(91)

$

(11)

U.S.

LargeCap

Buffer

January

Account

Equity

Contracts

Investment

transactions/Investments*

$

—

$

(65)

Options

and

swaptions

$

—

$

23

Total

$

—

$

(42)

U.S.

LargeCap

Buffer

July

Account

Equity

Contracts

Investment

transactions/Investments*

$

(72)

$

(776)

Options

and

swaptions

$

79

$

860

Total

$

7

$

84

U.S.

LargeCap

Buffer

October

Account

Equity

Contracts

Investment

transactions/Investments*

$

(226)

$

(442)

Options

and

swaptions

$

151

$

358

Total

$

(75)

$

(84)

*Investment

transactions

includes

purchased

options

and/or

purchased

swaptions

.

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

115

The

following

table

includes

a

summary

of

the

average

quarterly

outstanding

notional

by

derivative

instrument

type

for

the year

ended

December

31,

2022 (amounts

in

thousands):

4.

Fair

Valuation

Fair

value

is

defined

as

the

price

that

the Funds

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 Funds

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

Funds.

Unobservable

inputs

are

inputs

that

reflect

the

fund'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,

OTC

derivatives,

and

U.S.

Government

and

Government

Agency

Obligations.

Contract

Type

Derivative

Type

Average

Notional

Core

Plus

Bond

Account

Credit

Contracts

Exchange

Cleared

Credit

Default

Swaps

-

Buy

Protection

$

17,503

Interest

Rate

Contracts

Futures

-

Long

12,369

Futures

-

Short

4,498

Diversified

Balanced

Volatility

Control

Account

Equity

Contracts

Futures

-

Short

9,474

Diversified

Growth

Volatility

Control

Account

Equity

Contracts

Futures

-

Short

74,635

Government

&

High

Quality

Bond

Account

Interest

Rate

Contracts

Futures

-

Long

16,653

Futures

-

Short

11,499

LargeCap

Growth

Account

I

Equity

Contracts

Futures

-

Long

2,727

LargeCap

S&P

500

Index

Account

Equity

Contracts

Futures

-

Long

64,044

LargeCap

S&P

500

Managed

Volatility

Index

Account

Equity

Contracts

Futures

-

Long

3,254

Purchased

Options

26

Written

Options

26

Short-Term

Income

Account

Interest

Rate

Contracts

Futures

-

Long

2,475

U.S.

LargeCap

Buffer

January

Account

Equity

Contracts

Purchased

Options

76

Written

Options

88

U.S.

LargeCap

Buffer

July

Account

Equity

Contracts

Purchased

Options

63

Written

Options

75

U.S.

LargeCap

Buffer

October

Account

Equity

Contracts

Purchased

Options

52

Written

Options

58

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

116

●

Level

3

–

Significant

unobservable

inputs

(including

the

Funds’

assumptions

in

determining

the

fair

value

of

investments).

Investments

which are

generally included

in

this

category

include

certain

common

stocks,

convertible

preferred

stocks,

corporate

bonds,

preferred

stocks

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 Funds

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

Funds'

own

assumptions

are

set

to

reflect

those

that

market

participants

would

use

in

pricing

the

asset

or

liability

at

the

measurement

date.

The

Funds

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

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.

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,

pandemics, accidents,

conflicts,

etc.).

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 December

31,

2022

in

valuing

the

Funds'

securities

carried

at

fair

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)

Blue

Chip

Account

Common

Stocks*

$

8,588

$

—

$

—

$

8,588

Investment

Companies

194

—

—

194

Total

investments

in

securities

$

8,782

$

—

$

—

$

8,782

Bond

Market

Index

Account

Bonds*

—

685,402

—

685,402

Investment

Companies

70,770

—

—

70,770

Municipal

Bonds*

—

13,031

—

13,031

U.S.

Government

&

Government

Agency

Obligations*

—

1,565,353

—

1,565,353

Total

investments

in

securities

$

70,770

$

2,263,786

$

—

$

2,334,556

Core

Plus

Bond

Account

Bonds*

—

99,032

1

99,033

Investment

Companies

3,289

—

—

3,289

Senior

Floating

Rate

Interests*

—

1,665

—

1,665

U.S.

Government

&

Government

Agency

Obligations*

—

98,585

—

98,585

Total

investments

in

securities

$

3,289

$

199,282

$

1

$

202,572

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

117

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

(continued)

Derivative

Assets

Credit

Contracts

Exchange

Cleared

Credit

Default

Swaps**

$

—

$

5

$

—

$

5

Interest

Rate

Contracts

Futures**

16

—

—

16

Derivative

Liabilities

Credit

Contracts

Exchange

Cleared

Credit

Default

Swaps**

—

(169)

—

(169)

Interest

Rate

Contracts

Futures**

(31)

—

—

(31)

Diversified

Balanced

Account

Investment

Companies

749,112

—

—

749,112

Total

investments

in

securities

$

749,112

$

—

$

—

$

749,112

Diversified

Balanced

Managed

Volatility

Account

Investment

Companies

141,435

—

—

141,435

Total

investments

in

securities

$

141,435

$

—

$

—

$

141,435

Diversified

Balanced

Volatility

Control

Account

Investment

Companies

207,232

—

—

207,232

Total

investments

in

securities

$

207,232

$

—

$

—

$

207,232

Diversified

Growth

Account

Investment

Companies

3,046,755

—

—

3,046,755

Total

investments

in

securities

$

3,046,755

$

—

$

—

$

3,046,755

Diversified

Growth

Managed

Volatility

Account

Investment

Companies

293,052

—

—

293,052

Total

investments

in

securities

$

293,052

$

—

$

—

$

293,052

Diversified

Growth

Volatility

Control

Account

Investment

Companies

1,196,877

—

—

1,196,877

Total

investments

in

securities

$

1,196,877

$

—

$

—

$

1,196,877

Diversified

Income

Account

Investment

Companies

254,425

—

—

254,425

Total

investments

in

securities

$

254,425

$

—

$

—

$

254,425

Diversified

International

Account

Common

Stocks

Basic

Materials

4,230

9,731

—

13,961

Communications

1,890

4,470

—

6,360

Consumer,

Cyclical

11,187

24,321

—

35,508

Consumer,

Non-cyclical

2,371

46,567

—

48,938

Energy

5,939

9,903

—

15,842

Financial

13,694

43,783

—

57,477

Industrial

5,628

21,916

—

27,544

Technology

791

25,444

—

26,235

Utilities

—

3,569

—

3,569

Investment

Companies

4,879

—

—

4,879

Total

investments

in

securities

$

50,609

$

189,704

$

—

$

240,313

Equity

Income

Account

Common

Stocks*

668,512

—

—

668,512

Investment

Companies

23,499

—

—

23,499

Total

investments

in

securities

$

692,011

$

—

$

—

$

692,011

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

118

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Global

Emerging

Markets

Account

Common

Stocks

Basic

Materials

$

1,398

$

2,506

$

—

$

3,904

Communications

1,626

8,915

—

10,541

Consumer,

Cyclical

1,826

6,860

—

8,686

Consumer,

Non-cyclical

1,227

6,822

—

8,049

Energy

521

4,142

—

4,663

Financial

1,770

10,611

—

12,381

Industrial

408

4,670

—

5,078

Technology

1,171

10,770

—

11,941

Utilities

—

510

—

510

Investment

Companies

2,795

—

—

2,795

Preferred

Stocks

Financial

—

11

—

11

Total

investments

in

securities

$

12,742

$

55,817

$

—

$

68,559

Government

&

High

Quality

Bond

Account

Bonds*

—

16,463

—

16,463

Investment

Companies

5,397

—

—

5,397

U.S.

Government

&

Government

Agency

Obligations*

—

131,066

—

131,066

Total

investments

in

securities

$

5,397

$

147,529

$

—

$

152,926

Derivative

Assets

Interest

Rate

Contracts

Futures**

79

—

—

79

Derivative

Liabilities

Interest

Rate

Contracts

Futures**

(106)

—

—

(106)

LargeCap

Growth

Account

I

Common

Stocks

Basic

Materials

563

—

—

563

Communications

66,361

—

—

66,361

Consumer,

Cyclical

33,049

—

—

33,049

Consumer,

Non-cyclical

121,270

—

—

121,270

Energy

963

—

—

963

Financial

28,204

—

—

28,204

Industrial

23,657

—

—

23,657

Technology

151,155

—

113

151,268

Utilities

28

—

—

28

Convertible

Preferred

Stocks

Basic

Materials

—

—

154

154

Consumer,

Cyclical

—

—

117

117

Technology

—

—

427

427

Investment

Companies

13,290

—

—

13,290

Total

investments

in

securities

$

438,540

$

—

$

811

$

439,351

Derivative

Liabilities

Equity

Contracts

Futures**

(41)

—

—

(41)

LargeCap

S&P

500

Index

Account

Common

Stocks*

2,462,212

—

—

2,462,212

Investment

Companies

94,674

—

—

94,674

Total

investments

in

securities

$

2,556,886

$

—

$

—

$

2,556,886

Derivative

Liabilities

Equity

Contracts

Futures**

(2,278)

—

—

(2,278)

LargeCap

S&P

500

Managed

Volatility

Index

Account

Common

Stocks*

168,103

—

—

168,103

Investment

Companies

11,019

—

—

11,019

Purchased

Options

—

1,133

—

1,133

Total

investments

in

securities

$

179,122

$

1,133

$

—

$

180,255

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

119

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

LargeCap

S&P

500

Managed

Volatility

Index

Account

(continued)

Derivative

Liabilities

Equity

Contracts

Futures**

$

(45)

$

—

$

—

$

(45)

Written

Options

—

(661)

—

(661)

MidCap

Account

Common

Stocks*

587,697

—

—

587,697

Investment

Companies

1,497

—

—

1,497

Total

investments

in

securities

$

589,194

$

—

$

—

$

589,194

Principal

Capital

Appreciation

Account

Common

Stocks

Basic

Materials

4,599

—

—

4,599

Communications

15,210

—

—

15,210

Consumer,

Cyclical

16,668

—

—

16,668

Consumer,

Non-cyclical

27,551

—

—

27,551

Energy

8,946

—

—

8,946

Financial

28,867

—

—

28,867

Industrial

11,814

1,324

—

13,138

Technology

29,221

—

—

29,221

Utilities

5,379

—

—

5,379

Investment

Companies

1,410

—

—

1,410

Total

investments

in

securities

$

149,665

$

1,324

$

—

$

150,989

Principal

LifeTime

2010

Account

Investment

Companies

33,146

—

—

33,146

Total

investments

in

securities

$

33,146

$

—

$

—

$

33,146

Principal

LifeTime

2020

Account

Investment

Companies

151,556

—

—

151,556

Total

investments

in

securities

$

151,556

$

—

$

—

$

151,556

Principal

LifeTime

2030

Account

Investment

Companies

227,669

—

—

227,669

Total

investments

in

securities

$

227,669

$

—

$

—

$

227,669

Principal

LifeTime

2040

Account

Investment

Companies

118,059

—

—

118,059

Total

investments

in

securities

$

118,059

$

—

$

—

$

118,059

Principal

LifeTime

2050

Account

Investment

Companies

56,835

—

—

56,835

Total

investments

in

securities

$

56,835

$

—

$

—

$

56,835

Principal

LifeTime

2060

Account

Investment

Companies

15,134

—

—

15,134

Total

investments

in

securities

$

15,134

$

—

$

—

$

15,134

Principal

LifeTime

Strategic

Income

Account

Investment

Companies

24,137

—

—

24,137

Total

investments

in

securities

$

24,137

$

—

$

—

$

24,137

Real

Estate

Securities

Account

Common

Stocks*

132,266

—

—

132,266

Investment

Companies

1,325

—

—

1,325

Total

investments

in

securities

$

133,591

$

—

$

—

$

133,591

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

120

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

SAM

Balanced

Portfolio

Investment

Companies

$

568,167

$

—

$

—

$

568,167

Total

investments

in

securities

$

568,167

$

—

$

—

$

568,167

SAM

Conservative

Balanced

Portfolio

Investment

Companies

163,305

—

—

163,305

Total

investments

in

securities

$

163,305

$

—

$

—

$

163,305

SAM

Conservative

Growth

Portfolio

Investment

Companies

345,705

—

—

345,705

Total

investments

in

securities

$

345,705

$

—

$

—

$

345,705

SAM

Flexible

Income

Portfolio

Investment

Companies

143,024

—

—

143,024

Total

investments

in

securities

$

143,024

$

—

$

—

$

143,024

SAM

Strategic

Growth

Portfolio

Investment

Companies

338,864

—

—

338,864

Total

investments

in

securities

$

338,864

$

—

$

—

$

338,864

Short-Term

Income

Account

Bonds*

—

117,078

—

117,078

Investment

Companies

755

—

—

755

U.S.

Government

&

Government

Agency

Obligations*

—

15,685

—

15,685

Total

investments

in

securities

$

755

$

132,763

$

—

$

133,518

Derivative

Liabilities

Interest

Rate

Contracts

Futures**

(7)

—

—

(7)

SmallCap

Account

Common

Stocks*

164,447

—

—

164,447

Investment

Companies

770

—

—

770

Total

investments

in

securities

$

165,217

$

—

$

—

$

165,217

U.S.

LargeCap

Buffer

January

Account

Investment

Companies

48,773

—

—

48,773

Purchased

Options

—

5,035

—

5,035

Total

investments

in

securities

$

48,773

$

5,035

$

—

$

53,808

Derivative

Liabilities

Equity

Contracts

Written

Options

—

(1,573)

—

(1,573)

U.S.

LargeCap

Buffer

July

Account

Investment

Companies

22,936

—

—

22,936

Purchased

Options

—

4,346

—

4,346

Total

investments

in

securities

$

22,936

$

4,346

$

—

$

27,282

Derivative

Liabilities

Equity

Contracts

Written

Options

—

(899)

—

(899)

U.S.

LargeCap

Buffer

October

Account

Investment

Companies

15,747

—

—

15,747

Purchased

Options

—

3,071

—

3,071

Total

investments

in

securities

$

15,747

$

3,071

$

—

$

18,818

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

121

*For

additional

detail

regarding

sector

classifications,

please

see

the

schedules

of

investments.

**Exchange

cleared

swaps

and

futures

are

presented

at

the

unrealized

appreciation/(depreciation)

of

the

instrument.

At

the

end

of

the

year,

there

were

no Funds

which

had

a

significant

Level

3

balance.

During

the

year,

there

were

no

significant

purchases,

sales,

or

transfers

into

or

out

of

Level

3.

5.

Management

Agreement

and

Transactions

with

Affiliates

Management

Services.

The

Funds

have

agreed

to

pay

management

and

investment

advisory

fees

to

the

Manager

computed

at

an

annual

percentage

rate

of

each

of

the

Fund’s

average

daily

net

assets.

A

portion

of

the

management

fee

is

paid

by

the

Manager

to

the

sub-advisor

of

each

of

the

Funds,

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

management

and

investment

advisory

fees

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

Funds

do

not

pay

management

and

investment

advisory

fees.

The

annual

rates

used

in

this

calculation

for

each

of

the

other

Funds

are

as

follows:

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

U.S.

LargeCap

Buffer

October

Account

(continued)

Derivative

Liabilities

Equity

Contracts

Written

Options

$

—

$

(810)

$

—

$

(810)

Net

Assets

of

Fund

(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

Government

&

High

Quality

Bond

Account

.50

.48

.46

.45

.44

LargeCap

Growth

Account

I

.80

.75

.70

.65

.60

MidCap

Account

.65

.60

.55

.50

.45

Real

Estate

Securities

Account

.79

.77

.73

.70

.68

SmallCap

Account

.85

.80

.75

.70

.65

Net

Assets

of

Fund

(in

millions)

First

$250

Next

$250

Next

$250

Next

$250

Thereafter

Diversified

International

Account

.85%

.80%

.75%

.70%

.65%

Global

Emerging

Markets

Account

1.00

.98

.96

.95

.90

Net

Assets

of

Fund

(in

millions)

First

$500

Over

$500

Blue

Chip

Account

.60%

.55%

Principal

Capital

Appreciation

Account

.625

.50

Short-Term

Income

Account

.45

.39

Net

Assets

of

Fund

(in

billions)

First

$3

Over

$3

LargeCap

S&P

500

Index

Account

.24%

.23%

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

Managed

Volatility

Index

Account

.45

U.S.

LargeCap

Buffer

January

Account

.69

U.S.

LargeCap

Buffer

July

Account

.69

U.S.

LargeCap

Buffer

October

Account

.69

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

122

The

Manager

has

contractually

agreed

to

waive

certain

of

the

Funds'

management

and

investment

advisory

fees.

The

expense

waiver

will

reduce

the fund's

management

and

investment

advisory

fees.

The

waivers

are

expressed

as

a

percentage

of

average

daily

net

assets

on

an

annualized

basis

during

the

reporting

period.

The

waivers

are

as

follows:

The

Manager

has

contractually

agreed

to

limit

the

expenses

(excluding

interest

expense,

expenses

related

to fund

investments,

acquired

fund

fees

and

expenses,

and

tax

reclaim

recovery

expenses

and

other

extraordinary

expenses)

for

certain

classes

of

shares

of

certain

of

the

Funds.

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

expenses

borne

by

the

Manager

are

subject

to

reimbursement

by

the

Funds

through

the

fiscal

year

end,

provided

no

reimbursement

will

be

made

if

it

would

result

in

the

Funds

exceeding

the

total

operating

expense

limits.

Any

amounts

outstanding

at

the

end

of

the

year

are

shown

as

an

expense

reimbursement

from

Manager

or

expense

reimbursement

to

Manager

on

the

statements

of

assets

and

liabilities.

The

operating

expense

limits are

as

follows:

#

Period

from

December

28,

2022

(date

operations

commenced)

to

December

31,

2022.

*

Period

from

June

29,

2022

(date

operations

commenced)

to

December

31,

2022.

^

Period

from

September

29,

2022

(date

operations

commenced)

to

December

31,

2022.

Distribution

Fees.

Class

2

and

Class

3

shares

of

the

Funds

bear

distribution

fees.

The

fee

is

computed

at

an

annual

rate

of

the

average

daily

net

assets

attributable

to

Class

2

and

Class

3

shares

of

each

of

the

Funds.

Distribution

fees

are

paid

to

Principal

Funds

Distributor,

Inc.

(an

affiliate

of

the

Manager),

the

principal

distributor

of

the

Funds.

A

portion

of

the

distribution

fees

may

be

paid

to

other

selling

dealers

for

providing

certain

services.

The

annual

distribution

fee

rate

is

.25%.

Administrative

Service

Fees.

Class

3

shares

of

the

Funds

bear

administrative

service

fees.

The

fee

is

computed

at

an

annual

rate

of

the

average

daily

net

assets

attributable

to

Class

3

shares

of

each

of

the

Funds.

Administration

service

fees

are

paid

to

Principal

Shareholder

Services,

Inc.

(an

affiliate

of

the

Manager),

the

principal

administrator

of

the

Funds.

The

annual

administrative

service

fee

rate

is

.15%.

Chief

Compliance

Officer

Expenses.

The

Funds

pay

certain

expenses

associated

with

the

Chief

Compliance

Officer

(“CCO”).

This

expense

is

allocated

among

the

registered

investment

companies

managed

by

the

Manager

based

on

the

relative

net

assets

of

each

fund

and

is

shown

on

the

statements

of

operations.

Affiliated

Ownership.

At

December

31,

2022,

the

Manager,

Principal National

Life

Insurance

Company

(an

affiliate

of

the

Manager), Principal

Life

Insurance

Company

(an

affiliate

of

the

Manager),

Principal

Financial

Services,

Inc.

(an

affiliate

of

the

Manager) and/or

one

or

more

separate

accounts

sponsored

by

Principal

Life

Insurance

Company

owned

shares

of

the

Funds as

follows

(amounts

in

thousands):

Period

from

January

1,

2022

through

December

31,

2022

Expiration

LargeCap

Growth

Account

I

.016%

April

30,

2023

Period

from

January

1,

2022

through

December

31,

2022

Class

1

Class

2

Class

3

Expiration

Blue

Chip

Account

N/A

N/A

1.05%

April

30,

2023

Diversified

Balanced

Managed

Volatility

Account

N/A

.31%

N/A

April

30,

2023

Global

Emerging

Markets

Account

1.20%

N/A

N/A

April

30,

2023

LargeCap

Growth

Account

I

.69

N/A

N/A

April

30,

2023

Principal

LifeTime

2060

Account

.10

N/A

N/A

April

30,

2022

U.S.

LargeCap

Buffer

January

Account

N/A

.95#

N/A

April

30,

2024

U.S.

LargeCap

Buffer

July

Account

N/A

.95*

N/A

April

30,

2024

U.S.

LargeCap

Buffer

October

Account

N/A

.95^

N/A

April

30,

2024

Class

1

Class

2

Class

3

Blue

Chip

Account

N/A

N/A

876

Bond

Market

Index

Account

2,818

N/A

N/A

Core

Plus

Bond

Account

19,405

N/A

N/A

Diversified

Balanced

Account

2,401

52,605

1

Diversified

Balanced

Managed

Volatility

Account

N/A

12,854

1

Diversified

Balanced

Volatility

Control

Account

N/A

19,671

1

Diversified

Growth

Account

N/A

187,976

1

Diversified

Growth

Managed

Volatility

Account

N/A

24,930

1

Diversified

Growth

Volatility

Control

Account

N/A

108,148

1

Diversified

Income

Account

N/A

21,200

—

Diversified

International

Account

17,521

N/A

N/A

Equity

Income

Account

12,180

527

—

5.

Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

123

6.

Investment

Transactions

For

the year ended

December

31,

2022,

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

Funds

were

as

follows

(amounts

in

thousands):

Class

1

Class

2

Class

3

Global

Emerging

Markets

Account

5,080

N/A

N/A

Government

&

High

Quality

Bond

Account

12,216

N/A

N/A

LargeCap

Growth

Account

I

14,257

N/A

N/A

LargeCap

S&P

500

Index

Account

26,965

2,347

N/A

MidCap

Account

9,191

284

N/A

Principal

Capital

Appreciation

Account

3,382

383

N/A

Principal

LifeTime

2010

Account

3,059

N/A

N/A

Principal

LifeTime

2020

Account

13,041

N/A

N/A

Principal

LifeTime

2030

Account

19,456

N/A

N/A

Principal

LifeTime

2040

Account

8,091

N/A

N/A

Principal

LifeTime

2050

Account

4,071

N/A

N/A

Principal

LifeTime

2060

Account

1,116

N/A

N/A

Principal

LifeTime

Strategic

Income

Account

2,385

N/A

N/A

Real

Estate

Securities

Account

7,340

539

N/A

SAM

Balanced

Portfolio

32,137

2,884

N/A

SAM

Conservative

Balanced

Portfolio

12,908

1,437

N/A

SAM

Conservative

Growth

Portfolio

9,461

1,385

N/A

SAM

Flexible

Income

Portfolio

10,332

2,515

N/A

SAM

Strategic

Growth

Portfolio

8,435

885

N/A

Short-Term

Income

Account

55,144

N/A

N/A

SmallCap

Account

11,767

343

N/A

U.S.

LargeCap

Buffer

January

Account

N/A

2,662

N/A

U.S.

LargeCap

Buffer

July

Account

N/A

2,584

N/A

U.S.

LargeCap

Buffer

October

Account

N/A

1,711

N/A

Purchases

Sales

Blue

Chip

Account

$

7,773

$

8,814

Bond

Market

Index

Account

1,545,201

1,659,815

Core

Plus

Bond

Account

222,621

226,241

Diversified

Balanced

Account

164,230

226,515

Diversified

Balanced

Managed

Volatility

Account

33,191

41,093

Diversified

Balanced

Volatility

Control

Account

205,157

196,978

Diversified

Growth

Account

678,368

769,957

Diversified

Growth

Managed

Volatility

Account

65,314

83,439

Diversified

Growth

Volatility

Control

Account

1,146,402

1,056,805

Diversified

Income

Account

65,453

79,502

Diversified

International

Account

116,772

115,625

Equity

Income

Account

145,090

130,630

Global

Emerging

Markets

Account

24,429

26,200

Government

&

High

Quality

Bond

Account

356,584

387,590

LargeCap

Growth

Account

I

144,555

175,443

LargeCap

S&P

500

Index

Account

243,466

305,324

LargeCap

S&P

500

Managed

Volatility

Index

Account

15,623

29,088

MidCap

Account

105,732

93,142

Principal

Capital

Appreciation

Account

85,534

96,417

Principal

LifeTime

2010

Account

14,702

12,384

Principal

LifeTime

2020

Account

43,048

53,057

Principal

LifeTime

2030

Account

80,277

60,772

Principal

LifeTime

2040

Account

43,855

30,271

Principal

LifeTime

2050

Account

23,543

19,582

Principal

LifeTime

2060

Account

7,577

5,692

Principal

LifeTime

Strategic

Income

Account

10,067

11,141

Real

Estate

Securities

Account

28,289

29,262

SAM

Balanced

Portfolio

266,910

283,206

SAM

Conservative

Balanced

Portfolio

92,283

92,926

SAM

Conservative

Growth

Portfolio

173,763

157,888

SAM

Flexible

Income

Portfolio

87,197

105,047

SAM

Strategic

Growth

Portfolio

159,213

145,861

Short-Term

Income

Account

42,770

47,944

SmallCap

Account

32,961

40,278

5.

Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

124

For

the year

ended

December

31,

2022,

the

cost

of

U.S.

government

securities

purchased

and

proceeds

from

U.S.

government

securities

sold

(not

including

short-term

investments)

by

the

Funds

were

as

follows

(amounts

in

thousands):

7.

Federal

Tax

Information

Distributions

to

Shareholders.

The

federal

income

tax

character

of

distributions

paid

for

the years

ended December

31,

2022 and

December

31,

2021 were

as

follows

(amounts

in

thousands):

*The

Funds

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

Funds

may

also

utilize

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

dividends

paid

deduction.

Purchases

Sales

U.S.

LargeCap

Buffer

January

Account

$

22,713

$

—

U.S.

LargeCap

Buffer

July

Account

24,996

2,074

U.S.

LargeCap

Buffer

October

Account

22,340

7,862

Purchases

Sales

Bond

Market

Index

Account

$

991,400

$

1,038,620

Core

Plus

Bond

Account

88,062

68,666

Government

&

High

Quality

Bond

Account

188,343

198,451

Short-Term

Income

Account

44,677

30,606

Ordinary

Income

Long-Term

Capital

Gain*

Section

1250

Gain**

2022

2021

2022

2021

2022

2021

Blue

Chip

Account

$

—

$

88

$

13

$

2

$

—

$

—

Bond

Market

Index

Account

53,039

60,596

2,296

4,501

—

—

Core

Plus

Bond

Account

6,363

12,218

2,263

12

—

—

Diversified

Balanced

Account

20,659

28,150

71,158

43,719

—

—

Diversified

Balanced

Managed

Volatility

Account

4,380

4,631

11,500

2,573

—

—

Diversified

Balanced

Volatility

Control

Account

11,938

5,290

4,212

795

—

—

Diversified

Growth

Account

82,184

96,364

276,364

154,365

—

—

Diversified

Growth

Managed

Volatility

Account

9,755

8,754

25,974

6,515

—

—

Diversified

Growth

Volatility

Control

Account

67,136

24,199

33,793

6,827

—

—

Diversified

Income

Account

7,318

8,098

12,540

5,446

—

—

Diversified

International

Account

6,558

3,880

23,295

1,423

—

—

Equity

Income

Account

29,946

14,234

60,496

413

—

—

Global

Emerging

Markets

Account

2,586

421

5,557

1,430

—

—

Government

&

High

Quality

Bond

Account

2,203

4,266

—

—

—

—

LargeCap

Growth

Account

I

6,213

8,155

53,723

70,755

—

—

LargeCap

S&P

500

Index

Account

41,050

49,598

282,840

243,479

—

—

LargeCap

S&P

500

Managed

Volatility

Index

Account

2,043

7,341

19,424

19,494

—

—

MidCap

Account

1,775

832

63,099

44,094

—

—

Principal

Capital

Appreciation

Account

5,170

1,798

15,525

6,617

—

—

Principal

LifeTime

2010

Account

1,061

1,193

1,397

1,413

—

—

Principal

LifeTime

2020

Account

6,678

4,268

10,079

10,092

—

—

Principal

LifeTime

2030

Account

8,467

5,514

14,343

6,649

—

—

Principal

LifeTime

2040

Account

4,161

2,447

8,140

3,207

—

—

Principal

LifeTime

2050

Account

2,185

1,109

4,627

1,580

—

—

Principal

LifeTime

2060

Account

518

288

1,126

238

—

—

Principal

LifeTime

Strategic

Income

Account

926

887

1,091

968

—

—

Real

Estate

Securities

Account

2,788

2,299

9,374

10,480

271

—

SAM

Balanced

Portfolio

21,423

11,456

74,882

15,016

—

—

SAM

Conservative

Balanced

Portfolio

5,818

3,678

14,869

2,577

—

—

SAM

Conservative

Growth

Portfolio

12,091

4,710

35,689

8,342

—

—

SAM

Flexible

Income

Portfolio

6,580

4,511

10,409

2,801

—

—

SAM

Strategic

Growth

Portfolio

9,751

3,534

36,153

8,786

—

—

Short-Term

Income

Account

1,615

2,921

199

11

—

—

SmallCap

Account

6,073

4,950

26,187

2,532

—

—

U.S.

LargeCap

Buffer

July

Account

91

—

—

—

—

—

U.S.

LargeCap

Buffer

October

Account

39

—

—

—

—

—

6.

Investment

Transactions

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

125

For

U.S.

federal

income

tax

purposes,

short-term

capital

gain

distributions

are

considered

ordinary

income

distributions.

Distributable

Earnings.

As

of December

31,

2022,

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.

Capital

Loss

Carryforwards.

For

federal

income

tax

purposes,

capital

loss

carryforwards

are

losses

that

can

be

used

to

offset

future

capital

gains

of

the

Funds.

As

of

December

31,

2022,

the

Funds

had

approximate

net

capital

loss

carryforwards

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)

Blue

Chip

Account

$

—

$

—

$

(511)

$

(1,868)

$

—

$

(2,379)

Bond

Market

Index

Account

57,063

—

(64,803)

(298,749)

—

(306,489)

Core

Plus

Bond

Account

5,691

—

(12,004)

(23,494)

(10)

(29,817)

Diversified

Balanced

Account

12,813

45,809

—

102,834

—

161,456

Diversified

Balanced

Managed

Volatility

Account

2,142

6,251

—

1,437

—

9,830

Diversified

Balanced

Volatility

Control

Account

2,934

1,785

—

(18,205)

(21)

(13,507)

Diversified

Growth

Account

49,198

197,801

—

518,827

—

765,826

Diversified

Growth

Managed

Volatility

Account

4,087

17,109

—

14,312

—

35,508

Diversified

Growth

Volatility

Control

Account

16,061

20,319

—

(79,904)

(332)

(43,856)

Diversified

Income

Account

4,711

9,737

—

(824)

—

13,624

Diversified

International

Account

2,725

—

(3,536)

19,220

—

18,409

Equity

Income

Account

14,228

28,776

—

279,430

—

322,434

Global

Emerging

Markets

Account

1,455

—

(3,922)

801

—

(1,666)

Government

&

High

Quality

Bond

Account

2,867

—

(18,300)

(17,623)

(14)

(33,070)

LargeCap

Growth

Account

I

—

25,446

—

48,419

—

73,865

LargeCap

S&P

500

Index

Account

37,480

110,231

—

910,649

—

1,058,360

LargeCap

S&P

500

Managed

Volatility

Index

Account

2,246

10,487

—

60,350

(12,343)

60,740

MidCap

Account

—

13,916

—

165,775

—

179,691

Principal

Capital

Appreciation

Account

1,321

10,885

—

62,181

—

74,387

Principal

LifeTime

2010

Account

889

419

—

(3,447)

—

(2,139)

Principal

LifeTime

2020

Account

3,911

2,270

—

(8,575)

—

(2,394)

Principal

LifeTime

2030

Account

4,547

5,335

—

(13,528)

—

(3,646)

Principal

LifeTime

2040

Account

1,862

3,436

—

(6,404)

—

(1,106)

Principal

LifeTime

2050

Account

744

1,925

—

(3,708)

—

(1,039)

Principal

LifeTime

2060

Account

195

508

—

(1,543)

—

(840)

Principal

LifeTime

Strategic

Income

Account

667

236

—

(2,909)

—

(2,006)

Real

Estate

Securities

Account

2,792

5,322

—

9,644

—

17,758

SAM

Balanced

Portfolio

13,322

24,360

—

11,816

—

49,498

SAM

Conservative

Balanced

Portfolio

4,551

1,138

—

(4,580)

—

1,109

SAM

Conservative

Growth

Portfolio

6,135

19,108

—

12,812

—

38,055

SAM

Flexible

Income

Portfolio

4,525

—

(4,243)

(10,368)

—

(10,086)

SAM

Strategic

Growth

Portfolio

4,835

13,605

—

7,408

—

25,848

Short-Term

Income

Account

2,437

—

(1,198)

(6,755)

(6)

(5,522)

SmallCap

Account

510

—

(709)

12,902

—

12,703

U.S.

LargeCap

Buffer

January

Account

4

—

(41)

(1)

—

(38)

U.S.

LargeCap

Buffer

July

Account

92

56

—

(30)

(2)

116

U.S.

LargeCap

Buffer

October

Account

446

—

—

686

(13)

1,119

Short-Term

Long-Term

Total

Blue

Chip

Account

$

511

$

—

$

511

Bond

Market

Index

Account

32,787

32,016

64,803

Core

Plus

Bond

Account

6,614

5,390

12,004

Diversified

International

Account

3,536

—

3,536

Global

Emerging

Markets

Account

1,790

2,132

3,922

Government

&

High

Quality

Bond

Account

8,415

9,885

18,300

SAM

Flexible

Income

Portfolio

1,674

2,569

4,243

Short-Term

Income

Account

888

310

1,198

SmallCap

Account

709

—

709

U.S.

LargeCap

Buffer

January

Account

17

24

41

7.

Federal

Tax

Information

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

126

All

of

these

capital

losses

were

generated

in

taxable

years

beginning

after

the

enactment

date

of

the

Regulated

Investment

Company

Modernization

Act

of

2010

on

December

22,

2010,

and

will

be

carried

forward

with

no

expiration

and

with

the

character

of

the

loss

retained.

For

the

year

ended

December

31,

2022,

the

Funds

did

not

utilize

capital

loss

carryforwards.

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 fund's

taxable

year

subsequent

to

October 31.

For

the

taxable

year

ended

December

31,

2022

,

the Funds

do

not

plan

to

defer

any

late-year

losses. 

Reclassification

of

Capital

Accounts.

The

Funds

may

record

reclassifications

in

their

capital

accounts.

These

reclassifications

have

no

impact

on

the

total

net

assets

of

the

Funds.

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

Funds’

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,

2022,

the

Funds

recorded

reclassifications

as

follows

(amounts

in

thousands):

Federal

Income

Tax

Basis.

As

of December

31,

2022,

the

net

federal

income

tax

unrealized

appreciation

(depreciation)

and

federal

tax

cost

of

investments

held

by

the

Funds

were

as

follows

(amounts

in

thousands):

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

Blue

Chip

Account

$

27

$

(27)

Equity

Income

Account

(9,345)

9,345

LargeCap

Growth

Account

I

804

(804)

LargeCap

S&P

500

Index

Account

(44,443)

44,443

LargeCap

S&P

500

Managed

Volatility

Index

Account

(1,406)

1,406

MidCap

Account

(4,202)

4,202

Principal

Capital

Appreciation

Account

(2,789)

2,789

SmallCap

Account

(1)

1

U.S.

LargeCap

Buffer

July

Account

12

(12)

U.S.

LargeCap

Buffer

October

Account

9

(9)

Unrealized

Appreciation

Unrealized

(Depreciation)

Net

Unrealized

Appreciation/

(Depreciation)

Cost

for

Federal

Income

Tax

Purposes

Blue

Chip

Account

$

247

$

(2,116)

$

(1,869)

$

10,651

Bond

Market

Index

Account

2,532

(301,281)

(298,749)

2,633,305

Core

Plus

Bond

Account

599

(24,093)

(23,494)

225,887

Diversified

Balanced

Account

148,583

(45,749)

102,834

646,278

Diversified

Balanced

Managed

Volatility

Account

12,202

(10,765)

1,437

139,998

Diversified

Balanced

Volatility

Control

Account

2,844

(21,049)

(18,205)

225,437

Diversified

Growth

Account

675,254

(156,427)

518,827

2,527,928

Diversified

Growth

Managed

Volatility

Account

31,400

(17,088)

14,312

278,740

Diversified

Growth

Volatility

Control

Account

20,354

(100,258)

(79,904)

1,276,781

Diversified

Income

Account

24,184

(25,008)

(824)

255,249

Diversified

International

Account

3

6,657

(17,316)

19,

341

22

0,972

Equity

Income

Account

303,268

(23,838)

279,430

412,581

Global

Emerging

Markets

Account

9,

900

(8,829)

1,071

67,488

Government

&

High

Quality

Bond

Account

854

(18,477)

(17,623)

170,522

LargeCap

Growth

Account

I

112,290

(63,871)

48,419

390,891

LargeCap

S&P

500

Index

Account

1,059,357

(148,708)

910,649

1,643,959

LargeCap

S&P

500

Managed

Volatility

Index

Account

70,481

(10,131)

60,350

119,199

MidCap

Account

196,545

(30,769)

165,776

423,418

Principal

Capital

Appreciation

Account

66,421

(4,240)

62,181

88,808

Principal

LifeTime

2010

Account

1,475

(4,922)

(3,447)

36,593

Principal

LifeTime

2020

Account

11,933

(20,508)

(8,575)

160,131

Principal

LifeTime

2030

Account

14,800

(28,328)

(13,528)

241,197

Principal

LifeTime

2040

Account

7,530

(13,934)

(6,404)

124,463

Principal

LifeTime

2050

Account

4,020

(7,728)

(3,708)

60,543

Principal

LifeTime

2060

Account

577

(2,120)

(1,543)

16,677

Principal

LifeTime

Strategic

Income

Account

989

(3,898)

(2,909)

27,046

Real

Estate

Securities

Account

22,302

(12,658)

9,644

123,947

SAM

Balanced

Portfolio

69,683

(57,867)

11,816

556,351

7.

Federal

Tax

Information

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

127

8.

Subsequent

Events

Management

has

evaluated

events

and

transactions

that

have

occurred

through

the

date

the

financial

statements

were issued

that

would

merit

recognition

or

disclosure

in

the

financial

statements. 

On

September

13,

2022,

the

Fund’s

Board

of

Directors

approved

the

acquisition

of

the

assets

of

the

Principal

LifeTime

2010

Account

by

the

Principal

LifeTime

Strategic

Income

Account.

The

proposed

merger

is

expected

to

occur

on

or

about

May

1,

2023.

There

were

no

additional

items

requiring

adjustment

of

the

financial

statements

or

additional

disclosure.

Unrealized

Appreciation

Unrealized

(Depreciation)

Net

Unrealized

Appreciation/

(Depreciation)

Cost

for

Federal

Income

Tax

Purposes

SAM

Conservative

Balanced

Portfolio

$

12,478

$

(17,058)

$

(4,580)

$

167,885

SAM

Conservative

Growth

Portfolio

49,065

(36,253)

12,812

332,893

SAM

Flexible

Income

Portfolio

4,692

(15,060)

(10,368)

153,392

SAM

Strategic

Growth

Portfolio

36,833

(29,425)

7,408

331,456

Short-Term

Income

Account

173

(6,928)

(6,755)

140,266

SmallCap

Account

40,210

(27,308)

12,902

152,315

U.S.

LargeCap

Buffer

January

Account

24

(25)

(1)

52,236

U.S.

LargeCap

Buffer

July

Account

1,062

(1,092)

(30)

26,413

U.S.

LargeCap

Buffer

October

Account

1,226

(540)

686

17,322

7.

Federal

Tax

Information

(continued)

Schedule

of

Investments

Blue

Chip

Account

December

31,

2022

See

accompanying

notes.

128

INVESTMENT

COMPANIES

-

2.24%

Shares

Held

Value

(000's)

Money

Market

Funds

-

2.24%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

194,386‌

$

194‌

TOTAL

INVESTMENT

COMPANIES

$

194‌

COMMON

STOCKS

-

98.95%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

4.98%

TransDigm

Group

Inc

686‌

$

432‌

Chemicals

-

2.55%

Linde

PLC

457‌

149‌

Sherwin-Williams

Co/The

303‌

72‌

$

221‌

Commercial

Services

-

9.08%

CoStar

Group

Inc

(c)

3,280‌

253‌

Moody's

Corp

1,172‌

327‌

S&P

Global

Inc

622‌

208‌

$

788‌

Distribution

&

Wholesale

-

1.80%

Copart

Inc

(c)

2,563‌

156‌

Diversified

Financial

Services

-

13.20%

Brookfield

Asset

Management

Ltd

(c)

2,696‌

77‌

Brookfield

Reinsurance

Ltd

(c)

67‌

2‌

Charles

Schwab

Corp/The

2,464‌

205‌

Mastercard

Inc

1,239‌

431‌

Visa

Inc

2,074‌

431‌

$

1,146‌

Healthcare

-

Products

-

5.74%

Danaher

Corp

1,395‌

370‌

IDEXX

Laboratories

Inc

(c)

237‌

97‌

Intuitive

Surgical

Inc

(c)

116‌

31‌

$

498‌

Insurance

-

3.81%

Progressive

Corp/The

2,554‌

331‌

Internet

-

14.25%

Alphabet

Inc

-

A

Shares

(c)

983‌

87‌

Alphabet

Inc

-

C

Shares

(c)

4,557‌

404‌

Amazon.com

Inc

(c)

6,256‌

526‌

Netflix

Inc

(c)

747‌

220‌

$

1,237‌

Lodging

-

2.32%

Hilton

Worldwide

Holdings

Inc

1,587‌

201‌

Pharmaceuticals

-

1.94%

Zoetis

Inc

1,149‌

168‌

Private

Equity

-

5.52%

Brookfield

Corp

11,026‌

347‌

KKR

&

Co

Inc

2,851‌

132‌

$

479‌

REITs

-

5.02%

American

Tower

Corp

1,922‌

407‌

SBA

Communications

Corp

104‌

29‌

$

436‌

Retail

-

4.03%

CarMax

Inc

(c)

1,058‌

64‌

Costco

Wholesale

Corp

185‌

85‌

O'Reilly

Automotive

Inc

(c)

238‌

201‌

$

350‌

Semiconductors

-

0.33%

NVIDIA

Corp

195‌

29‌

Software

-

21.13%

Adobe

Inc

(c)

1,039‌

350‌

Intuit

Inc

813‌

316‌

Microsoft

Corp

3,815‌

915‌

Roper

Technologies

Inc

532‌

230‌

Salesforce

Inc

(c)

156‌

21‌

Snowflake

Inc

-

Class

A

(c)

14‌

2‌

$

1,834‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Transportation

-

3.25%

Union

Pacific

Corp

1,363‌

$

282‌

TOTAL

COMMON

STOCKS

$

8,588‌

Total

Investments

$

8,782‌

Other

Assets

and

Liabilities

-  (1.19)%

(103‌)

TOTAL

NET

ASSETS

-

100.00%

$

8,679‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Sector

Percent

Financial

27.55‌%

Technology

21.46‌%

Consumer,

Non-cyclical

16.76‌%

Communications

14.25‌%

Industrial

8.23‌%

Consumer,

Cyclical

8.15‌%

Basic

Materials

2.55‌%

Money

Market

Funds

2.24‌%

Other

Assets

and

Liabilities

(1.19‌)%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Blue

Chip

Account

December

31,

2022

See

accompanying

notes.

129

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

303‌

$

109‌

$

194‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

30‌

5,459‌

5,489‌

—‌

$

30‌

$

5,762‌

$

5,598‌

$

194‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

1‌

—‌

—‌

—‌

$

1‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

130

INVESTMENT

COMPANIES

-

3.09%

Shares

Held

Value

(000's)

Money

Market

Funds

-

3.09%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

5,040,397‌

$

5,040‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b),(c)

65,730,514‌

65,730‌

$

70,770‌

TOTAL

INVESTMENT

COMPANIES

$

70,770‌

BONDS

-

29.93%

Principal

Amount

(000's)

Value

(000's)

Advertising

-

0.03%

Interpublic

Group

of

Cos

Inc/The

2.40%,

03/01/2031

$

190‌

$

150‌

5.40%,

10/01/2048

300‌

274‌

Omnicom

Group

Inc

2.45%,

04/30/2030

160‌

133‌

2.60%,

08/01/2031

295‌

241‌

$

798‌

Aerospace

&

Defense

-

0.46%

Boeing

Co/The

1.43%,

02/04/2024

435‌

417‌

2.75%,

02/01/2026

175‌

162‌

2.95%,

02/01/2030

170‌

144‌

3.25%,

02/01/2028

325‌

295‌

3.25%,

02/01/2035

170‌

129‌

3.63%,

02/01/2031

175‌

153‌

3.75%,

02/01/2050

235‌

161‌

3.95%,

08/01/2059

315‌

212‌

4.88%,

05/01/2025

620‌

615‌

5.04%,

05/01/2027

310‌

307‌

5.15%,

05/01/2030

310‌

302‌

5.71%,

05/01/2040

310‌

296‌

5.81%,

05/01/2050

505‌

468‌

5.88%,

02/15/2040

154‌

148‌

General

Dynamics

Corp

1.15%,

06/01/2026

195‌

173‌

2.25%,

06/01/2031

195‌

163‌

3.25%,

04/01/2025

80‌

78‌

3.50%,

04/01/2027

160‌

153‌

3.75%,

05/15/2028

300‌

285‌

4.25%,

04/01/2040

160‌

146‌

L3Harris

Technologies

Inc

1.80%,

01/15/2031

90‌

69‌

2.90%,

12/15/2029

60‌

51‌

3.83%,

04/27/2025

500‌

486‌

Lockheed

Martin

Corp

1.85%,

06/15/2030

55‌

45‌

3.55%,

01/15/2026

120‌

117‌

3.80%,

03/01/2045

375‌

306‌

3.90%,

06/15/2032

100‌

94‌

4.07%,

12/15/2042

47‌

41‌

4.09%,

09/15/2052

389‌

326‌

4.15%,

06/15/2053

100‌

85‌

4.70%,

05/15/2046

25‌

23‌

4.95%,

10/15/2025

135‌

136‌

5.10%,

11/15/2027

150‌

153‌

5.25%,

01/15/2033

150‌

155‌

5.70%,

11/15/2054

150‌

157‌

Northrop

Grumman

Corp

3.20%,

02/01/2027

500‌

469‌

3.85%,

04/15/2045

500‌

399‌

4.03%,

10/15/2047

300‌

249‌

Raytheon

Technologies

Corp

1.90%,

09/01/2031

170‌

134‌

2.25%,

07/01/2030

160‌

133‌

2.38%,

03/15/2032

195‌

158‌

2.82%,

09/01/2051

175‌

113‌

3.03%,

03/15/2052

195‌

132‌

3.50%,

03/15/2027

250‌

238‌

3.75%,

11/01/2046

30‌

23‌

4.05%,

05/04/2047

300‌

246‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Aerospace

&

Defense

(continued)

Raytheon

Technologies

Corp  

(continued)

4.13%,

11/16/2028

$

435‌

$

416‌

4.15%,

05/15/2045

40‌

33‌

4.35%,

04/15/2047

40‌

34‌

4.50%,

06/01/2042

375‌

337‌

4.63%,

11/16/2048

210‌

189‌

4.88%,

10/15/2040

154‌

144‌

$

10,498‌

Agriculture

-

0.33%

Altria

Group

Inc

2.35%,

05/06/2025

160‌

151‌

2.45%,

02/04/2032

190‌

143‌

3.40%,

05/06/2030

325‌

278‌

3.70%,

02/04/2051

190‌

119‌

3.88%,

09/16/2046

60‌

40‌

4.00%,

02/04/2061

190‌

123‌

4.80%,

02/14/2029

63‌

60‌

5.80%,

02/14/2039

380‌

350‌

Archer-Daniels-Midland

Co

2.50%,

08/11/2026

850‌

788‌

2.70%,

09/15/2051

195‌

129‌

2.90%,

03/01/2032

390‌

335‌

BAT

Capital

Corp

2.26%,

03/25/2028

170‌

141‌

2.73%,

03/25/2031

170‌

133‌

2.79%,

09/06/2024

245‌

234‌

3.46%,

09/06/2029

245‌

211‌

3.56%,

08/15/2027

800‌

731‌

3.98%,

09/25/2050

170‌

111‌

4.54%,

08/15/2047

325‌

230‌

BAT

International

Finance

PLC

1.67%,

03/25/2026

170‌

151‌

Bunge

Ltd

Finance

Corp

2.75%,

05/14/2031

195‌

160‌

Philip

Morris

International

Inc

0.88%,

05/01/2026

175‌

154‌

1.75%,

11/01/2030

175‌

137‌

2.75%,

02/25/2026

310‌

290‌

3.25%,

11/10/2024

30‌

29‌

3.38%,

08/11/2025

375‌

360‌

4.13%,

03/04/2043

300‌

237‌

4.25%,

11/10/2044

30‌

24‌

4.38%,

11/15/2041

61‌

50‌

4.50%,

03/20/2042

400‌

337‌

4.88%,

11/15/2043

35‌

31‌

5.13%,

11/17/2027

255‌

257‌

5.63%,

11/17/2029

255‌

259‌

5.75%,

11/17/2032

130‌

133‌

Reynolds

American

Inc

4.45%,

06/12/2025

250‌

245‌

5.70%,

08/15/2035

25‌

23‌

5.85%,

08/15/2045

415‌

353‌

$

7,537‌

Airlines

-

0.04%

American

Airlines

2019-1

Class

AA

Pass

Through

Trust

3.15%,

08/15/2033

147‌

121‌

Delta

Air

Lines

2020-1

Class

AA

Pass

Through

Trust

2.00%,

06/10/2028

272‌

232‌

Southwest

Airlines

Co

5.25%,

05/04/2025

480‌

482‌

United

Airlines

2014-2

Class

A

Pass

Through

Trust

3.75%,

03/03/2028

122‌

112‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

131

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Airlines

(continued)

United

Airlines

2019-2

Class

AA

Pass

Through

Trust

2.70%,

11/01/2033

$

71‌

$

57‌

$

1,004‌

Apparel

-

0.04%

NIKE

Inc

2.40%,

03/27/2025

160‌

153‌

2.75%,

03/27/2027

160‌

149‌

3.25%,

03/27/2040

160‌

130‌

3.38%,

11/01/2046

350‌

271‌

3.63%,

05/01/2043

200‌

166‌

$

869‌

Automobile

Manufacturers

-

0.40%

American

Honda

Finance

Corp

0.55%,

07/12/2024

190‌

177‌

1.20%,

07/08/2025

165‌

151‌

1.30%,

09/09/2026

195‌

172‌

2.15%,

09/10/2024

445‌

425‌

2.25%,

01/12/2029

200‌

172‌

General

Motors

Co

5.00%,

10/01/2028

400‌

383‌

5.00%,

04/01/2035

200‌

172‌

5.40%,

04/01/2048

360‌

294‌

6.75%,

04/01/2046

25‌

24‌

General

Motors

Financial

Co

Inc

1.05%,

03/08/2024

190‌

180‌

1.20%,

10/15/2024

175‌

162‌

1.25%,

01/08/2026

190‌

167‌

1.50%,

06/10/2026

190‌

165‌

2.35%,

02/26/2027

730‌

637‌

2.35%,

01/08/2031

190‌

143‌

2.40%,

04/10/2028

190‌

160‌

2.40%,

10/15/2028

175‌

145‌

2.70%,

06/10/2031

190‌

146‌

3.80%,

04/07/2025

200‌

193‌

4.30%,

07/13/2025

325‌

315‌

4.35%,

01/17/2027

305‌

290‌

5.10%,

01/17/2024

500‌

498‌

Honda

Motor

Co

Ltd

2.53%,

03/10/2027

390‌

356‌

Mercedes-Benz

Finance

North

America

LLC

8.50%,

01/18/2031

127‌

157‌

PACCAR

Financial

Corp

0.35%,

02/02/2024

190‌

181‌

1.80%,

02/06/2025

170‌

160‌

3.55%,

08/11/2025

175‌

170‌

Toyota

Motor

Corp

1.34%,

03/25/2026

385‌

345‌

3.67%,

07/20/2028

200‌

190‌

Toyota

Motor

Credit

Corp

0.45%,

01/11/2024

190‌

182‌

0.50%,

06/18/2024

190‌

178‌

0.80%,

10/16/2025

210‌

188‌

1.15%,

08/13/2027

165‌

140‌

1.65%,

01/10/2031

190‌

150‌

1.80%,

02/13/2025

160‌

150‌

1.90%,

01/13/2027

200‌

178‌

1.90%,

09/12/2031

195‌

154‌

2.00%,

10/07/2024

165‌

157‌

3.35%,

01/08/2024

400‌

395‌

3.65%,

08/18/2025

115‌

112‌

4.40%,

09/20/2024

165‌

163‌

4.45%,

06/29/2029

155‌

152‌

4.55%,

09/20/2027

95‌

94‌

$

9,123‌

Automobile

Parts

&

Equipment

-

0.03%

Aptiv

PLC

/

Aptiv

Corp

3.25%,

03/01/2032

175‌

143‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Automobile

Parts

&

Equipment

(continued)

BorgWarner

Inc

3.38%,

03/15/2025

$

500‌

$

479‌

$

622‌

Banks

-

5.82%

Banco

Santander

SA

1.85%,

03/25/2026

400‌

353‌

2.75%,

05/28/2025

200‌

187‌

2.75%,

12/03/2030

400‌

306‌

3.22%,

11/22/2032

(d)

200‌

151‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.60%

3.49%,

05/28/2030

200‌

168‌

5.29%,

08/18/2027

200‌

195‌

Bank

of

America

Corp

0.98%,

04/22/2025

(d)

380‌

356‌

Secured

Overnight

Financing

Rate

+

0.69%

0.98%,

09/25/2025

(d)

170‌

156‌

Secured

Overnight

Financing

Rate

+

0.91%

1.32%,

06/19/2026

(d)

320‌

288‌

Secured

Overnight

Financing

Rate

+

1.15%

1.66%,

03/11/2027

(d)

365‌

323‌

Secured

Overnight

Financing

Rate

+

0.91%

1.73%,

07/22/2027

(d)

380‌

333‌

Secured

Overnight

Financing

Rate

+

0.96%

1.90%,

07/23/2031

(d)

750‌

576‌

Secured

Overnight

Financing

Rate

+

1.53%

1.92%,

10/24/2031

(d)

340‌

260‌

Secured

Overnight

Financing

Rate

+

1.37%

2.09%,

06/14/2029

(d)

190‌

160‌

Secured

Overnight

Financing

Rate

+

1.06%

2.30%,

07/21/2032

(d)

380‌

293‌

Secured

Overnight

Financing

Rate

+

1.22%

2.46%,

10/22/2025

(d)

310‌

293‌

3

Month

USD

LIBOR

+

0.87%

2.48%,

09/21/2036

(d)

385‌

283‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.20%

2.50%,

02/13/2031

(d)

320‌

260‌

3

Month

USD

LIBOR

+

0.99%

2.55%,

02/04/2028

(d)

390‌

346‌

Secured

Overnight

Financing

Rate

+

1.05%

2.57%,

10/20/2032

(d)

355‌

278‌

Secured

Overnight

Financing

Rate

+

1.21%

2.65%,

03/11/2032

(d)

570‌

456‌

Secured

Overnight

Financing

Rate

+

1.22%

2.68%,

06/19/2041

(d)

670‌

451‌

Secured

Overnight

Financing

Rate

+

1.93%

2.83%,

10/24/2051

(d)

880‌

539‌

Secured

Overnight

Financing

Rate

+

1.88%

2.97%,

02/04/2033

(d)

390‌

314‌

Secured

Overnight

Financing

Rate

+

1.33%

2.97%,

07/21/2052

(d)

380‌

237‌

Secured

Overnight

Financing

Rate

+

1.56%

3.19%,

07/23/2030

(d)

335‌

288‌

3

Month

USD

LIBOR

+

1.18%

3.25%,

10/21/2027

40‌

37‌

3.31%,

04/22/2042

(d)

380‌

279‌

Secured

Overnight

Financing

Rate

+

1.58%

3.38%,

04/02/2026

(d)

195‌

186‌

Secured

Overnight

Financing

Rate

+

1.33%

3.42%,

12/20/2028

(d)

1,041‌

943‌

3

Month

USD

LIBOR

+

1.04%

3.48%,

03/13/2052

(d)

190‌

134‌

Secured

Overnight

Financing

Rate

+

1.65%

3.50%,

04/19/2026

345‌

329‌

3.59%,

07/21/2028

(d)

500‌

460‌

3

Month

USD

LIBOR

+

1.37%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

132

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Bank

of

America

Corp  

(continued)

3.82%,

01/20/2028

(d)

$

400‌

$

373‌

3

Month

USD

LIBOR

+

1.58%

3.88%,

08/01/2025

30‌

29‌

3.95%,

04/21/2025

480‌

467‌

3.97%,

02/07/2030

(d)

1,000‌

908‌

3

Month

USD

LIBOR

+

1.21%

4.18%,

11/25/2027

560‌

531‌

4.20%,

08/26/2024

625‌

615‌

4.27%,

07/23/2029

(d)

360‌

336‌

3

Month

USD

LIBOR

+

1.31%

4.33%,

03/15/2050

(d)

310‌

254‌

3

Month

USD

LIBOR

+

1.52%

4.38%,

04/27/2028

(d)

470‌

449‌

Secured

Overnight

Financing

Rate

+

1.58%

4.44%,

01/20/2048

(d)

30‌

25‌

3

Month

USD

LIBOR

+

1.99%

4.57%,

04/27/2033

(d)

590‌

540‌

Secured

Overnight

Financing

Rate

+

1.83%

4.83%,

07/22/2026

(d)

340‌

336‌

Secured

Overnight

Financing

Rate

+

1.75%

5.00%,

01/21/2044

25‌

23‌

5.02%,

07/22/2033

(d)

340‌

323‌

Secured

Overnight

Financing

Rate

+

2.16%

5.88%,

02/07/2042

228‌

232‌

6.11%,

01/29/2037

400‌

405‌

7.75%,

05/14/2038

250‌

291‌

Bank

of

America

NA

6.00%,

10/15/2036

250‌

255‌

Bank

of

Montreal

0.95%,

01/22/2027

(d)

190‌

168‌

Secured

Overnight

Financing

Rate

+

0.60%

1.85%,

05/01/2025

150‌

140‌

3.09%,

01/10/2037

(d)

400‌

302‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.40%

3.30%,

02/05/2024

400‌

392‌

3.70%,

06/07/2025

175‌

170‌

4.25%,

09/14/2024

105‌

104‌

4.70%,

09/14/2027

105‌

104‌

Bank

of

New

York

Mellon

Corp/The

0.50%,

04/26/2024

170‌

160‌

0.75%,

01/28/2026

185‌

164‌

1.60%,

04/24/2025

140‌

130‌

1.65%,

07/14/2028

150‌

126‌

2.05%,

01/26/2027

200‌

180‌

2.10%,

10/24/2024

375‌

357‌

2.50%,

01/26/2032

200‌

162‌

3.35%,

04/25/2025

195‌

189‌

3.99%,

06/13/2028

(d)

175‌

167‌

Secured

Overnight

Financing

Rate

+

1.15%

4.41%,

07/24/2026

(d)

170‌

167‌

Secured

Overnight

Financing

Rate

+

1.35%

5.83%,

10/25/2033

(d)

150‌

155‌

Secured

Overnight

Financing

Rate

+

2.07%

Bank

of

Nova

Scotia/The

1.05%,

03/02/2026

190‌

168‌

1.30%,

06/11/2025

160‌

147‌

1.30%,

09/15/2026

195‌

170‌

1.45%,

01/10/2025

175‌

163‌

2.15%,

08/01/2031

190‌

151‌

2.70%,

08/03/2026

170‌

157‌

3.40%,

02/11/2024

400‌

393‌

4.50%,

12/16/2025

500‌

490‌

5.25%,

12/06/2024

155‌

155‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Barclays

PLC

2.28%,

11/24/2027

(d)

$

420‌

$

363‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.05%

2.65%,

06/24/2031

(d)

320‌

250‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.90%

2.67%,

03/10/2032

(d)

200‌

153‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.20%

3.56%,

09/23/2035

(d)

200‌

152‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.90%

3.81%,

03/10/2042

(d)

200‌

135‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.70%

4.34%,

01/10/2028

1,030‌

957‌

4.38%,

01/12/2026

200‌

194‌

4.97%,

05/16/2029

(d)

210‌

197‌

3

Month

USD

LIBOR

+

1.90%

5.50%,

08/09/2028

(d)

335‌

324‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.65%

7.33%,

11/02/2026

(d)

305‌

316‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

3.05%

7.44%,

11/02/2033

(d)

305‌

320‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

3.50%

BNP

Paribas

SA

4.25%,

10/15/2024

750‌

733‌

BPCE

SA

4.00%,

04/15/2024

250‌

246‌

Canadian

Imperial

Bank

of

Commerce

1.25%,

06/22/2026

190‌

167‌

3.30%,

04/07/2025

375‌

360‌

Citigroup

Inc

0.98%,

05/01/2025

(d)

485‌

454‌

Secured

Overnight

Financing

Rate

+

0.67%

1.12%,

01/28/2027

(d)

185‌

161‌

Secured

Overnight

Financing

Rate

+

0.77%

1.28%,

11/03/2025

(d)

145‌

134‌

Secured

Overnight

Financing

Rate

+

0.53%

1.46%,

06/09/2027

(d)

370‌

321‌

Secured

Overnight

Financing

Rate

+

0.77%

2.01%,

01/25/2026

(d)

185‌

171‌

Secured

Overnight

Financing

Rate

+

0.69%

2.52%,

11/03/2032

(d)

175‌

136‌

Secured

Overnight

Financing

Rate

+

1.18%

2.56%,

05/01/2032

(d)

520‌

411‌

Secured

Overnight

Financing

Rate

+

1.17%

2.57%,

06/03/2031

(d)

320‌

259‌

Secured

Overnight

Financing

Rate

+

2.11%

2.67%,

01/29/2031

(d)

315‌

258‌

Secured

Overnight

Financing

Rate

+

1.15%

2.90%,

11/03/2042

(d)

195‌

135‌

Secured

Overnight

Financing

Rate

+

1.38%

2.98%,

11/05/2030

(d)

155‌

130‌

Secured

Overnight

Financing

Rate

+

1.42%

3.06%,

01/25/2033

(d)

185‌

149‌

Secured

Overnight

Financing

Rate

+

1.35%

3.20%,

10/21/2026

770‌

712‌

3.67%,

07/24/2028

(d)

650‌

597‌

3

Month

USD

LIBOR

+

1.39%

3.75%,

06/16/2024

500‌

491‌

3.79%,

03/17/2033

(d)

395‌

338‌

Secured

Overnight

Financing

Rate

+

1.94%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

133

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Citigroup

Inc  

(continued)

3.89%,

01/10/2028

(d)

$

400‌

$

374‌

3

Month

USD

LIBOR

+

1.56%

4.07%,

04/23/2029

(d)

240‌

221‌

3

Month

USD

LIBOR

+

1.19%

4.28%,

04/24/2048

(d)

330‌

270‌

3

Month

USD

LIBOR

+

1.84%

4.30%,

11/20/2026

525‌

508‌

4.40%,

06/10/2025

780‌

766‌

4.45%,

09/29/2027

20‌

19‌

4.60%,

03/09/2026

60‌

59‌

4.65%,

07/30/2045

222‌

190‌

4.66%,

05/24/2028

(d),(e)

365‌

353‌

Secured

Overnight

Financing

Rate

+

1.89%

4.91%,

05/24/2033

(d)

230‌

215‌

Secured

Overnight

Financing

Rate

+

2.09%

5.30%,

05/06/2044

25‌

22‌

5.50%,

09/13/2025

325‌

327‌

5.61%,

09/29/2026

(d)

395‌

397‌

Secured

Overnight

Financing

Rate

+

1.55%

5.88%,

01/30/2042

328‌

330‌

6.27%,

11/17/2033

(d)

305‌

315‌

Secured

Overnight

Financing

Rate

+

2.34%

6.63%,

06/15/2032

112‌

118‌

6.68%,

09/13/2043

30‌

32‌

8.13%,

07/15/2039

132‌

162‌

Citizens

Bank

NA/Providence

RI

6.06%,

10/24/2025

(d)

295‌

298‌

Secured

Overnight

Financing

Rate

+

1.45%

Cooperatieve

Rabobank

UA

5.25%,

05/24/2041

500‌

500‌

5.25%,

08/04/2045

250‌

224‌

5.75%,

12/01/2043

250‌

236‌

Cooperatieve

Rabobank

UA/NY

0.38%,

01/12/2024

250‌

238‌

3.88%,

08/22/2024

250‌

246‌

Credit

Suisse

AG/New

York

NY

0.50%,

02/02/2024

305‌

282‌

1.25%,

08/07/2026

250‌

202‌

3.63%,

09/09/2024

400‌

373‌

5.00%,

07/09/2027

275‌

251‌

Credit

Suisse

Group

AG

3.75%,

03/26/2025

250‌

225‌

4.88%,

05/15/2045

250‌

171‌

Deutsche

Bank

AG/New

York

NY

0.90%,

05/28/2024

150‌

140‌

1.69%,

03/19/2026

500‌

448‌

2.13%,

11/24/2026

(d)

200‌

176‌

Secured

Overnight

Financing

Rate

+

1.87%

4.10%,

01/13/2026

500‌

481‌

5.37%,

09/09/2027

325‌

326‌

Discover

Bank

2.45%,

09/12/2024

320‌

303‌

2.70%,

02/06/2030

250‌

200‌

Fifth

Third

Bancorp

2.38%,

01/28/2025

85‌

81‌

4.06%,

04/25/2028

(d)

150‌

142‌

Secured

Overnight

Financing

Rate

+

1.36%

4.30%,

01/16/2024

30‌

30‌

Fifth

Third

Bank

NA

3.85%,

03/15/2026

700‌

667‌

Goldman

Sachs

Group

Inc/The

0.86%,

02/12/2026

(d)

155‌

140‌

Secured

Overnight

Financing

Rate

+

0.61%

1.09%,

12/09/2026

(d)

315‌

278‌

Secured

Overnight

Financing

Rate

+

0.79%

1.43%,

03/09/2027

(d)

385‌

338‌

Secured

Overnight

Financing

Rate

+

0.80%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Goldman

Sachs

Group

Inc/The  

(continued)

1.54%,

09/10/2027

(d)

$

190‌

$

164‌

Secured

Overnight

Financing

Rate

+

0.82%

1.95%,

10/21/2027

(d)

400‌

350‌

Secured

Overnight

Financing

Rate

+

0.91%

1.99%,

01/27/2032

(d)

475‌

362‌

Secured

Overnight

Financing

Rate

+

1.09%

2.38%,

07/21/2032

(d)

285‌

221‌

Secured

Overnight

Financing

Rate

+

1.25%

2.60%,

02/07/2030

840‌

701‌

2.62%,

04/22/2032

(d)

380‌

303‌

Secured

Overnight

Financing

Rate

+

1.28%

2.64%,

02/24/2028

(d)

300‌

267‌

Secured

Overnight

Financing

Rate

+

1.11%

2.65%,

10/21/2032

(d)

195‌

154‌

Secured

Overnight

Financing

Rate

+

1.26%

2.91%,

07/21/2042

(d)

385‌

262‌

Secured

Overnight

Financing

Rate

+

1.47%

3.10%,

02/24/2033

(d)

780‌

633‌

Secured

Overnight

Financing

Rate

+

1.41%

3.21%,

04/22/2042

(d)

190‌

137‌

Secured

Overnight

Financing

Rate

+

1.51%

3.44%,

02/24/2043

(d)

385‌

283‌

Secured

Overnight

Financing

Rate

+

1.63%

3.50%,

01/23/2025

600‌

580‌

3.63%,

02/20/2024

550‌

540‌

3.81%,

04/23/2029

(d)

1,050‌

959‌

3

Month

USD

LIBOR

+

1.16%

3.85%,

01/26/2027

60‌

57‌

4.22%,

05/01/2029

(d)

415‌

387‌

3

Month

USD

LIBOR

+

1.30%

4.25%,

10/21/2025

680‌

664‌

4.41%,

04/23/2039

(d)

180‌

156‌

3

Month

USD

LIBOR

+

1.43%

4.48%,

08/23/2028

(d)

280‌

268‌

Secured

Overnight

Financing

Rate

+

1.73%

4.80%,

07/08/2044

25‌

22‌

5.15%,

05/22/2045

310‌

278‌

6.75%,

10/01/2037

530‌

566‌

HSBC

Holdings

PLC

0.98%,

05/24/2025

(d)

400‌

370‌

Secured

Overnight

Financing

Rate

+

0.71%

1.59%,

05/24/2027

(d)

400‌

345‌

Secured

Overnight

Financing

Rate

+

1.29%

1.65%,

04/18/2026

(d)

250‌

226‌

Secured

Overnight

Financing

Rate

+

1.54%

2.01%,

09/22/2028

(d)

335‌

280‌

Secured

Overnight

Financing

Rate

+

1.73%

2.10%,

06/04/2026

(d)

320‌

291‌

Secured

Overnight

Financing

Rate

+

1.93%

2.36%,

08/18/2031

(d)

200‌

153‌

Secured

Overnight

Financing

Rate

+

1.95%

2.63%,

11/07/2025

(d)

230‌

216‌

Secured

Overnight

Financing

Rate

+

1.40%

2.80%,

05/24/2032

(d)

200‌

155‌

Secured

Overnight

Financing

Rate

+

1.19%

2.85%,

06/04/2031

(d)

200‌

160‌

Secured

Overnight

Financing

Rate

+

2.39%

2.87%,

11/22/2032

(d)

400‌

306‌

Secured

Overnight

Financing

Rate

+

1.41%

3.97%,

05/22/2030

(d)

400‌

350‌

3

Month

USD

LIBOR

+

1.61%

4.04%,

03/13/2028

(d)

500‌

461‌

3

Month

USD

LIBOR

+

1.55%

4.18%,

12/09/2025

(d)

340‌

330‌

Secured

Overnight

Financing

Rate

+

1.51%

4.25%,

03/14/2024

500‌

491‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

134

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

HSBC

Holdings

PLC  

(continued)

4.29%,

09/12/2026

(d)

$

500‌

$

478‌

3

Month

USD

LIBOR

+

1.35%

4.58%,

06/19/2029

(d)

365‌

336‌

3

Month

USD

LIBOR

+

1.53%

4.76%,

06/09/2028

(d)

200‌

189‌

Secured

Overnight

Financing

Rate

+

2.11%

4.95%,

03/31/2030

200‌

191‌

5.25%,

03/14/2044

300‌

253‌

5.40%,

08/11/2033

(d)

335‌

310‌

Secured

Overnight

Financing

Rate

+

2.87%

6.10%,

01/14/2042

174‌

181‌

6.50%,

05/02/2036

420‌

424‌

7.39%,

11/03/2028

(d)

305‌

321‌

Secured

Overnight

Financing

Rate

+

3.35%

Huntington

Bancshares

Inc/OH

2.55%,

02/04/2030

110‌

90‌

Huntington

National

Bank/The

5.65%,

01/10/2030

305‌

307‌

ING

Groep

NV

1.73%,

04/01/2027

(d)

200‌

176‌

Secured

Overnight

Financing

Rate

+

1.01%

2.73%,

04/01/2032

(d)

200‌

159‌

Secured

Overnight

Financing

Rate

+

1.32%

3.55%,

04/09/2024

400‌

391‌

JPMorgan

Chase

&

Co

0.56%,

02/16/2025

(d)

190‌

179‌

Secured

Overnight

Financing

Rate

+

0.42%

0.77%,

08/09/2025

(d)

385‌

355‌

Secured

Overnight

Financing

Rate

+

0.49%

0.82%,

06/01/2025

(d)

375‌

350‌

Secured

Overnight

Financing

Rate

+

0.54%

0.97%,

06/23/2025

(d)

385‌

359‌

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

0.58%

1.04%,

02/04/2027

(d)

380‌

331‌

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

0.70%

1.05%,

11/19/2026

(d)

360‌

318‌

Secured

Overnight

Financing

Rate

+

0.80%

1.47%,

09/22/2027

(d)

155‌

134‌

Secured

Overnight

Financing

Rate

+

0.77%

1.58%,

04/22/2027

(d)

380‌

334‌

Secured

Overnight

Financing

Rate

+

0.89%

1.76%,

11/19/2031

(d)

360‌

273‌

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

1.11%

1.95%,

02/04/2032

(d)

380‌

291‌

Secured

Overnight

Financing

Rate

+

1.07%

2.01%,

03/13/2026

(d)

160‌

148‌

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

1.59%

2.07%,

06/01/2029

(d)

295‌

246‌

Secured

Overnight

Financing

Rate

+

1.02%

2.08%,

04/22/2026

(d)

460‌

427‌

Secured

Overnight

Financing

Rate

+

1.85%

2.18%,

06/01/2028

(d)

265‌

232‌

Secured

Overnight

Financing

Rate

+

1.89%

2.30%,

10/15/2025

(d)

280‌

264‌

Secured

Overnight

Financing

Rate

+

1.16%

2.52%,

04/22/2031

(d)

380‌

311‌

Secured

Overnight

Financing

Rate

+

2.04%

2.53%,

11/19/2041

(d)

180‌

118‌

Secured

Overnight

Financing

Rate

+

1.51%

2.55%,

11/08/2032

(d)

390‌

308‌

Secured

Overnight

Financing

Rate

+

1.18%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

JPMorgan

Chase

&

Co  

(continued)

2.58%,

04/22/2032

(d)

$

380‌

$

304‌

Secured

Overnight

Financing

Rate

+

1.25%

2.74%,

10/15/2030

(d)

260‌

218‌

Secured

Overnight

Financing

Rate

+

1.51%

2.95%,

10/01/2026

300‌

280‌

2.96%,

05/13/2031

(d)

350‌

288‌

Secured

Overnight

Financing

Rate

+

2.52%

3.11%,

04/22/2041

(d)

380‌

276‌

Secured

Overnight

Financing

Rate

+

2.46%

3.11%,

04/22/2051

(d)

730‌

478‌

Secured

Overnight

Financing

Rate

+

2.44%

3.30%,

04/01/2026

500‌

474‌

3.33%,

04/22/2052

(d)

380‌

257‌

Secured

Overnight

Financing

Rate

+

1.58%

3.51%,

01/23/2029

(d)

400‌

363‌

3

Month

USD

LIBOR

+

0.95%

3.63%,

12/01/2027

25‌

23‌

3.88%,

02/01/2024

520‌

513‌

3.88%,

09/10/2024

500‌

489‌

3.88%,

07/24/2038

(d)

500‌

415‌

3

Month

USD

LIBOR

+

1.36%

3.90%,

07/15/2025

300‌

293‌

3.96%,

11/15/2048

(d)

400‌

312‌

3

Month

USD

LIBOR

+

1.38%

4.01%,

04/23/2029

(d)

270‌

250‌

3

Month

USD

LIBOR

+

1.12%

4.03%,

07/24/2048

(d)

30‌

24‌

3

Month

USD

LIBOR

+

1.46%

4.20%,

07/23/2029

(d)

300‌

280‌

3

Month

USD

LIBOR

+

1.26%

4.25%,

10/01/2027

10‌

10‌

4.32%,

04/26/2028

(d)

585‌

559‌

Secured

Overnight

Financing

Rate

+

1.56%

4.57%,

06/14/2030

(d)

535‌

503‌

Secured

Overnight

Financing

Rate

+

1.75%

4.59%,

04/26/2033

(d)

390‌

361‌

Secured

Overnight

Financing

Rate

+

1.80%

4.85%,

07/25/2028

(d)

170‌

166‌

Secured

Overnight

Financing

Rate

+

1.99%

4.85%,

02/01/2044

20‌

18‌

4.91%,

07/25/2033

(d)

340‌

324‌

Secured

Overnight

Financing

Rate

+

2.08%

4.95%,

06/01/2045

55‌

49‌

5.40%,

01/06/2042

102‌

100‌

5.55%,

12/15/2025

(d)

310‌

310‌

Secured

Overnight

Financing

Rate

+

1.07%

5.60%,

07/15/2041

154‌

154‌

5.63%,

08/16/2043

375‌

364‌

5.72%,

09/14/2033

(d)

325‌

317‌

Secured

Overnight

Financing

Rate

+

2.58%

6.40%,

05/15/2038

550‌

594‌

KeyBank

NA/Cleveland

OH

5.85%,

11/15/2027

250‌

258‌

KeyCorp

2.25%,

04/06/2027

410‌

363‌

2.55%,

10/01/2029

310‌

261‌

3.88%,

05/23/2025

(d)

160‌

157‌

Secured

Overnight

Financing

Rate

+

1.25%

Korea

Development

Bank/The

0.40%,

06/19/2024

400‌

374‌

0.80%,

04/27/2026

350‌

307‌

1.75%,

02/18/2025

500‌

466‌

4.00%,

09/08/2025

200‌

194‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

135

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Kreditanstalt

fuer

Wiederaufbau

0.00%,

04/18/2036

(f)

$

380‌

$

219‌

0.00%,

06/29/2037

(f)

200‌

109‌

0.25%,

03/08/2024

575‌

545‌

0.38%,

07/18/2025

580‌

525‌

0.50%,

09/20/2024

575‌

536‌

0.63%,

01/22/2026

790‌

707‌

1.00%,

10/01/2026

290‌

258‌

1.25%,

01/31/2025

800‌

749‌

2.00%,

05/02/2025

380‌

359‌

2.50%,

11/20/2024

800‌

770‌

2.88%,

04/03/2028

275‌

259‌

3.00%,

05/20/2027

520‌

496‌

3.13%,

06/10/2025

270‌

262‌

Landwirtschaftliche

Rentenbank

0.88%,

03/30/2026

170‌

152‌

0.88%,

09/03/2030

330‌

260‌

2.00%,

01/13/2025

300‌

285‌

2.38%,

06/10/2025

600‌

571‌

3.88%,

09/28/2027

205‌

202‌

Lloyds

Banking

Group

PLC

3.57%,

11/07/2028

(d)

430‌

387‌

3

Month

USD

LIBOR

+

1.21%

3.75%,

01/11/2027

515‌

479‌

4.45%,

05/08/2025

400‌

392‌

4.65%,

03/24/2026

500‌

479‌

4.98%,

08/11/2033

(d)

335‌

308‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.30%

5.30%,

12/01/2045

200‌

171‌

Mitsubishi

UFJ

Financial

Group

Inc

0.95%,

07/19/2025

(d)

400‌

372‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.55%

1.41%,

07/17/2025

200‌

182‌

1.54%,

07/20/2027

(d)

400‌

347‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.75%

1.64%,

10/13/2027

(d)

200‌

173‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.67%

2.05%,

07/17/2030

250‌

197‌

2.19%,

02/25/2025

200‌

187‌

2.56%,

02/25/2030

200‌

166‌

2.76%,

09/13/2026

200‌

183‌

2.80%,

07/18/2024

450‌

432‌

3.20%,

07/18/2029

200‌

175‌

3.75%,

07/18/2039

550‌

447‌

3.85%,

03/01/2026

350‌

335‌

4.08%,

04/19/2028

(d)

200‌

189‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.30%

4.32%,

04/19/2033

(d)

200‌

181‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.55%

5.13%,

07/20/2033

(d)

200‌

191‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.13%

5.35%,

09/13/2028

(d)

325‌

322‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.90%

Mizuho

Financial

Group

Inc

2.20%,

07/10/2031

(d)

200‌

156‌

Secured

Overnight

Financing

Rate

+

1.77%

2.23%,

05/25/2026

(d)

200‌

184‌

3

Month

USD

LIBOR

+

0.83%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Mizuho

Financial

Group

Inc  

(continued)

2.26%,

07/09/2032

(d)

$

200‌

$

152‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%

2.84%,

07/16/2025

(d)

1,000‌

953‌

Secured

Overnight

Financing

Rate

+

1.24%

3.15%,

07/16/2030

(d)

400‌

342‌

3

Month

USD

LIBOR

+

1.13%

5.41%,

09/13/2028

(d),(e)

325‌

325‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.05%

Morgan

Stanley

0.79%,

01/22/2025

(d)

380‌

359‌

Secured

Overnight

Financing

Rate

+

0.51%

0.79%,

05/30/2025

(d)

385‌

358‌

Secured

Overnight

Financing

Rate

+

0.53%

0.86%,

10/21/2025

(d)

95‌

87‌

Secured

Overnight

Financing

Rate

+

0.75%

0.99%,

12/10/2026

(d)

280‌

245‌

Secured

Overnight

Financing

Rate

+

0.72%

1.16%,

10/21/2025

(d)

165‌

152‌

Secured

Overnight

Financing

Rate

+

0.56%

1.51%,

07/20/2027

(d)

380‌

330‌

Secured

Overnight

Financing

Rate

+

0.86%

1.59%,

05/04/2027

(d)

270‌

237‌

Secured

Overnight

Financing

Rate

+

0.88%

1.79%,

02/13/2032

(d)

710‌

534‌

Secured

Overnight

Financing

Rate

+

1.03%

1.93%,

04/28/2032

(d)

105‌

79‌

Secured

Overnight

Financing

Rate

+

1.02%

2.19%,

04/28/2026

(d)

475‌

441‌

Secured

Overnight

Financing

Rate

+

1.99%

2.24%,

07/21/2032

(d)

380‌

292‌

Secured

Overnight

Financing

Rate

+

1.18%

2.48%,

01/21/2028

(d)

120‌

107‌

Secured

Overnight

Financing

Rate

+

1.00%

2.48%,

09/16/2036

(d)

265‌

192‌

Secured

Overnight

Financing

Rate

+

1.36%

2.51%,

10/20/2032

(d)

180‌

141‌

Secured

Overnight

Financing

Rate

+

1.20%

2.72%,

07/22/2025

(d)

250‌

239‌

Secured

Overnight

Financing

Rate

+

1.15%

2.80%,

01/25/2052

(d)

240‌

148‌

Secured

Overnight

Financing

Rate

+

1.43%

2.94%,

01/21/2033

(d)

280‌

227‌

Secured

Overnight

Financing

Rate

+

1.29%

3.13%,

07/27/2026

680‌

634‌

3.22%,

04/22/2042

(d)

190‌

141‌

Secured

Overnight

Financing

Rate

+

1.49%

3.59%,

07/22/2028

(d)

30‌

28‌

3

Month

USD

LIBOR

+

1.34%

3.62%,

04/17/2025

(d)

390‌

381‌

Secured

Overnight

Financing

Rate

+

1.16%

3.63%,

01/20/2027

530‌

500‌

3.70%,

10/23/2024

25‌

24‌

3.77%,

01/24/2029

(d)

360‌

330‌

3

Month

USD

LIBOR

+

1.14%

3.88%,

04/29/2024

30‌

30‌

3.95%,

04/23/2027

50‌

47‌

3.97%,

07/22/2038

(d)

15‌

13‌

3

Month

USD

LIBOR

+

1.46%

4.00%,

07/23/2025

30‌

29‌

4.21%,

04/20/2028

(d)

390‌

371‌

Secured

Overnight

Financing

Rate

+

1.61%

4.30%,

01/27/2045

50‌

43‌

4.35%,

09/08/2026

30‌

29‌

4.38%,

01/22/2047

30‌

25‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

136

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Morgan

Stanley  

(continued)

4.68%,

07/17/2026

(d)

$

170‌

$

167‌

Secured

Overnight

Financing

Rate

+

1.67%

4.89%,

07/20/2033

(d)

225‌

211‌

Secured

Overnight

Financing

Rate

+

2.08%

5.00%,

11/24/2025

525‌

523‌

5.60%,

03/24/2051

(d)

500‌

497‌

Secured

Overnight

Financing

Rate

+

4.84%

6.14%,

10/16/2026

(d)

295‌

301‌

Secured

Overnight

Financing

Rate

+

1.77%

6.30%,

10/18/2028

(d)

295‌

305‌

Secured

Overnight

Financing

Rate

+

2.24%

6.34%,

10/18/2033

(d)

295‌

309‌

Secured

Overnight

Financing

Rate

+

2.56%

6.38%,

07/24/2042

620‌

672‌

NatWest

Group

PLC

1.64%,

06/14/2027

(d)

265‌

229‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%

4.80%,

04/05/2026

500‌

489‌

4.89%,

05/18/2029

(d)

400‌

378‌

3

Month

USD

LIBOR

+

1.75%

5.08%,

01/27/2030

(d)

400‌

377‌

3

Month

USD

LIBOR

+

1.91%

Northern

Trust

Corp

3.95%,

10/30/2025

500‌

490‌

4.00%,

05/10/2027

130‌

127‌

Oesterreichische

Kontrollbank

AG

0.38%,

09/17/2025

340‌

305‌

2.88%,

05/23/2025

430‌

414‌

3.63%,

09/09/2027

125‌

122‌

PNC

Bank

NA

2.70%,

10/22/2029

250‌

211‌

PNC

Financial

Services

Group

Inc/The

2.20%,

11/01/2024

130‌

124‌

2.31%,

04/23/2032

(d)

150‌

121‌

Secured

Overnight

Financing

Rate

+

0.98%

2.55%,

01/22/2030

160‌

136‌

2.60%,

07/23/2026

490‌

454‌

3.45%,

04/23/2029

300‌

274‌

4.63%,

06/06/2033

(d)

105‌

97‌

Secured

Overnight

Financing

Rate

+

1.85%

5.35%,

12/02/2028

(d)

105‌

106‌

Secured

Overnight

Financing

Rate

+

1.62%

Royal

Bank

of

Canada

0.43%,

01/19/2024

380‌

363‌

1.15%,

07/14/2026

190‌

167‌

1.20%,

04/27/2026

175‌

156‌

1.60%,

01/21/2025

700‌

654‌

2.25%,

11/01/2024

310‌

295‌

2.55%,

07/16/2024

125‌

121‌

3.63%,

05/04/2027

115‌

109‌

3.88%,

05/04/2032

225‌

205‌

6.00%,

11/01/2027

150‌

156‌

Santander

Holdings

USA

Inc

2.49%,

01/06/2028

(d)

270‌

232‌

Secured

Overnight

Financing

Rate

+

1.25%

4.50%,

07/17/2025

780‌

763‌

Santander

UK

Group

Holdings

PLC

1.09%,

03/15/2025

(d)

200‌

187‌

Secured

Overnight

Financing

Rate

+

0.79%

1.53%,

08/21/2026

(d)

200‌

176‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.25%

1.67%,

06/14/2027

(d)

200‌

170‌

Secured

Overnight

Financing

Rate

+

0.99%

2.47%,

01/11/2028

(d)

200‌

171‌

Secured

Overnight

Financing

Rate

+

1.22%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

State

Street

Corp

2.20%,

02/07/2028

(d)

$

145‌

$

130‌

Secured

Overnight

Financing

Rate

+

0.73%

2.20%,

03/03/2031

140‌

112‌

2.35%,

11/01/2025

(d)

250‌

238‌

Secured

Overnight

Financing

Rate

+

0.94%

2.40%,

01/24/2030

160‌

136‌

2.65%,

05/19/2026

60‌

56‌

3.55%,

08/18/2025

225‌

219‌

4.42%,

05/13/2033

(d)

365‌

345‌

Secured

Overnight

Financing

Rate

+

1.61%

5.75%,

11/04/2026

(d)

90‌

92‌

Secured

Overnight

Financing

Rate

+

1.35%

Sumitomo

Mitsui

Financial

Group

Inc

0.51%,

01/12/2024

200‌

190‌

1.47%,

07/08/2025

300‌

273‌

1.90%,

09/17/2028

400‌

330‌

2.13%,

07/08/2030

530‌

419‌

2.14%,

09/23/2030

170‌

131‌

2.30%,

01/12/2041

200‌

126‌

2.35%,

01/15/2025

200‌

189‌

2.70%,

07/16/2024

420‌

403‌

2.75%,

01/15/2030

200‌

168‌

2.93%,

09/17/2041

195‌

131‌

3.04%,

07/16/2029

200‌

173‌

3.36%,

07/12/2027

450‌

416‌

3.45%,

01/11/2027

140‌

131‌

3.78%,

03/09/2026

500‌

481‌

Toronto-Dominion

Bank/The

0.70%,

09/10/2024

195‌

181‌

1.15%,

06/12/2025

330‌

301‌

1.20%,

06/03/2026

190‌

168‌

1.95%,

01/12/2027

400‌

356‌

2.00%,

09/10/2031

195‌

154‌

2.35%,

03/08/2024

195‌

189‌

3.20%,

03/10/2032

195‌

168‌

3.77%,

06/06/2025

70‌

68‌

4.11%,

06/08/2027

70‌

68‌

4.29%,

09/13/2024

295‌

292‌

4.46%,

06/08/2032

175‌

167‌

4.69%,

09/15/2027

565‌

559‌

Truist

Bank

1.50%,

03/10/2025

250‌

232‌

3.63%,

09/16/2025

250‌

240‌

Truist

Financial

Corp

1.13%,

08/03/2027

215‌

181‌

1.20%,

08/05/2025

365‌

334‌

1.27%,

03/02/2027

(d)

60‌

53‌

Secured

Overnight

Financing

Rate

+

0.61%

1.89%,

06/07/2029

(d)

175‌

146‌

Secured

Overnight

Financing

Rate

+

0.86%

1.95%,

06/05/2030

290‌

233‌

2.50%,

08/01/2024

350‌

336‌

4.12%,

06/06/2028

(d)

135‌

129‌

Secured

Overnight

Financing

Rate

+

1.37%

5.90%,

10/28/2026

(d)

150‌

153‌

Secured

Overnight

Financing

Rate

+

1.63%

US

Bancorp

1.38%,

07/22/2030

415‌

321‌

2.22%,

01/27/2028

(d)

155‌

139‌

Secured

Overnight

Financing

Rate

+

0.73%

2.40%,

07/30/2024

190‌

183‌

2.49%,

11/03/2036

(d)

175‌

133‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

0.95%

3.00%,

07/30/2029

950‌

834‌

3.15%,

04/27/2027

25‌

23‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

137

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

US

Bancorp  

(continued)

5.73%,

10/21/2026

(d)

$

150‌

$

153‌

Secured

Overnight

Financing

Rate

+

1.43%

5.85%,

10/21/2033

(d)

150‌

156‌

Secured

Overnight

Financing

Rate

+

2.09%

US

Bank

NA/Cincinnati

OH

2.05%,

01/21/2025

300‌

284‌

Wells

Fargo

&

Co

0.81%,

05/19/2025

(d)

110‌

103‌

Secured

Overnight

Financing

Rate

+

0.51%

2.16%,

02/11/2026

(d)

645‌

601‌

3

Month

USD

LIBOR

+

0.75%

2.19%,

04/30/2026

(d)

525‌

489‌

Secured

Overnight

Financing

Rate

+

2.00%

2.39%,

06/02/2028

(d)

475‌

419‌

Secured

Overnight

Financing

Rate

+

2.10%

2.41%,

10/30/2025

(d)

970‌

917‌

Secured

Overnight

Financing

Rate

+

1.09%

3.00%,

04/22/2026

500‌

468‌

3.00%,

10/23/2026

530‌

490‌

3.07%,

04/30/2041

(d)

480‌

342‌

Secured

Overnight

Financing

Rate

+

2.53%

3.35%,

03/02/2033

(d)

465‌

392‌

Secured

Overnight

Financing

Rate

+

1.50%

3.58%,

05/22/2028

(d)

500‌

464‌

3

Month

USD

LIBOR

+

1.31%

3.91%,

04/25/2026

(d)

390‌

379‌

Secured

Overnight

Financing

Rate

+

1.32%

4.10%,

06/03/2026

600‌

581‌

4.40%,

06/14/2046

385‌

309‌

4.48%,

04/04/2031

(d)

245‌

230‌

Secured

Overnight

Financing

Rate

+

4.03%

4.61%,

04/25/2053

(d)

390‌

330‌

Secured

Overnight

Financing

Rate

+

2.13%

4.65%,

11/04/2044

330‌

278‌

4.81%,

07/25/2028

(d)

170‌

166‌

Secured

Overnight

Financing

Rate

+

1.98%

4.90%,

07/25/2033

(d)

340‌

323‌

Secured

Overnight

Financing

Rate

+

2.10%

4.90%,

11/17/2045

520‌

448‌

5.01%,

04/04/2051

(d)

325‌

286‌

Secured

Overnight

Financing

Rate

+

4.50%

5.38%,

11/02/2043

20‌

19‌

5.61%,

01/15/2044

45‌

44‌

Wells

Fargo

Bank

NA

5.95%,

08/26/2036

750‌

752‌

6.60%,

01/15/2038

250‌

270‌

Westpac

Banking

Corp

1.15%,

06/03/2026

190‌

168‌

1.95%,

11/20/2028

200‌

170‌

2.15%,

06/03/2031

190‌

158‌

2.35%,

02/19/2025

155‌

147‌

2.65%,

01/16/2030

155‌

135‌

2.89%,

02/04/2030

(d)

160‌

147‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.35%

2.96%,

11/16/2040

80‌

53‌

3.02%,

11/18/2036

(d)

150‌

112‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.53%

3.13%,

11/18/2041

200‌

132‌

3.74%,

08/26/2025

110‌

107‌

4.04%,

08/26/2027

110‌

107‌

4.11%,

07/24/2034

(d)

165‌

141‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.00%

4.42%,

07/24/2039

165‌

136‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Westpac

Banking

Corp  

(continued)

5.46%,

11/18/2027

$

560‌

$

572‌

$

133,353‌

Beverages

-

0.56%

Anheuser-Busch

Cos

LLC

/

Anheuser-Busch

InBev

Worldwide

Inc

3.65%,

02/01/2026

525‌

505‌

4.70%,

02/01/2036

1,030‌

973‌

4.90%,

02/01/2046

890‌

809‌

Anheuser-Busch

InBev

Finance

Inc

4.63%,

02/01/2044

25‌

22‌

Anheuser-Busch

InBev

Worldwide

Inc

3.50%,

06/01/2030

295‌

269‌

4.35%,

06/01/2040

605‌

532‌

4.75%,

01/23/2029

560‌

553‌

5.45%,

01/23/2039

500‌

499‌

5.80%,

01/23/2059

595‌

609‌

8.20%,

01/15/2039

51‌

64‌

Coca-Cola

Co/The

1.00%,

03/15/2028

340‌

284‌

1.38%,

03/15/2031

340‌

265‌

1.45%,

06/01/2027

360‌

318‌

1.50%,

03/05/2028

190‌

164‌

1.65%,

06/01/2030

260‌

213‌

1.75%,

09/06/2024

190‌

181‌

2.13%,

09/06/2029

165‌

141‌

2.25%,

01/05/2032

195‌

164‌

2.50%,

06/01/2040

260‌

189‌

2.50%,

03/15/2051

170‌

110‌

2.60%,

06/01/2050

260‌

172‌

2.88%,

05/05/2041

195‌

149‌

3.00%,

03/05/2051

285‌

207‌

3.38%,

03/25/2027

160‌

153‌

Constellation

Brands

Inc

2.25%,

08/01/2031

170‌

135‌

3.15%,

08/01/2029

630‌

552‌

3.60%,

05/09/2024

80‌

78‌

4.35%,

05/09/2027

160‌

156‌

Diageo

Capital

PLC

2.13%,

10/24/2024

200‌

190‌

2.13%,

04/29/2032

200‌

159‌

2.38%,

10/24/2029

200‌

171‌

5.30%,

10/24/2027

295‌

302‌

5.88%,

09/30/2036

139‌

145‌

Fomento

Economico

Mexicano

SAB

de

CV

3.50%,

01/16/2050

160‌

112‌

Keurig

Dr

Pepper

Inc

2.25%,

03/15/2031

(e)

190‌

153‌

3.35%,

03/15/2051

190‌

130‌

3.95%,

04/15/2029

110‌

102‌

4.05%,

04/15/2032

110‌

100‌

4.50%,

04/15/2052

110‌

92‌

Molson

Coors

Beverage

Co

3.00%,

07/15/2026

530‌

492‌

5.00%,

05/01/2042

50‌

44‌

PepsiCo

Inc

1.40%,

02/25/2031

165‌

130‌

1.63%,

05/01/2030

95‌

77‌

1.95%,

10/21/2031

165‌

133‌

2.38%,

10/06/2026

670‌

623‌

2.63%,

07/29/2029

170‌

150‌

2.63%,

10/21/2041

160‌

118‌

2.75%,

10/21/2051

160‌

111‌

2.85%,

02/24/2026

500‌

475‌

2.88%,

10/15/2049

160‌

114‌

3.60%,

02/18/2028

170‌

163‌

4.20%,

07/18/2052

60‌

55‌

$

12,807‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

138

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Biotechnology

-

0.29%

Amgen

Inc

1.65%,

08/15/2028

$

180‌

$

150‌

1.90%,

02/21/2025

160‌

150‌

2.00%,

01/15/2032

180‌

141‌

2.20%,

02/21/2027

1,090‌

978‌

2.45%,

02/21/2030

160‌

135‌

2.60%,

08/19/2026

500‌

462‌

3.00%,

02/22/2029

200‌

177‌

3.00%,

01/15/2052

180‌

115‌

3.15%,

02/21/2040

860‌

633‌

3.38%,

02/21/2050

160‌

111‌

4.20%,

03/01/2033

165‌

153‌

4.20%,

02/22/2052

200‌

159‌

4.40%,

05/01/2045

40‌

34‌

4.66%,

06/15/2051

300‌

258‌

4.88%,

03/01/2053

165‌

146‌

Baxalta

Inc

4.00%,

06/23/2025

50‌

49‌

5.25%,

06/23/2045

130‌

124‌

Biogen

Inc

2.25%,

05/01/2030

115‌

94‌

5.20%,

09/15/2045

540‌

508‌

Gilead

Sciences

Inc

1.65%,

10/01/2030

165‌

131‌

2.60%,

10/01/2040

85‌

59‌

2.80%,

10/01/2050

165‌

106‌

2.95%,

03/01/2027

530‌

493‌

4.00%,

09/01/2036

300‌

264‌

4.60%,

09/01/2035

500‌

475‌

Regeneron

Pharmaceuticals

Inc

1.75%,

09/15/2030

165‌

127‌

Royalty

Pharma

PLC

1.75%,

09/02/2027

310‌

262‌

2.20%,

09/02/2030

160‌

125‌

3.30%,

09/02/2040

160‌

111‌

$

6,730‌

Building

Materials

-

0.13%

Carrier

Global

Corp

2.24%,

02/15/2025

23‌

22‌

2.49%,

02/15/2027

36‌

32‌

2.72%,

02/15/2030

320‌

269‌

3.38%,

04/05/2040

300‌

228‌

3.58%,

04/05/2050

160‌

114‌

Johnson

Controls

International

plc

4.50%,

02/15/2047

500‌

411‌

Johnson

Controls

International

plc

/

Tyco

Fire

&

Security

Finance

SCA

2.00%,

09/16/2031

385‌

304‌

Martin

Marietta

Materials

Inc

2.50%,

03/15/2030

500‌

412‌

3.20%,

07/15/2051

190‌

129‌

Masco

Corp

1.50%,

02/15/2028

190‌

157‌

4.50%,

05/15/2047

525‌

411‌

Owens

Corning

4.40%,

01/30/2048

300‌

232‌

Vulcan

Materials

Co

3.50%,

06/01/2030

295‌

260‌

$

2,981‌

Chemicals

-

0.35%

Air

Products

and

Chemicals

Inc

1.85%,

05/15/2027

655‌

582‌

2.80%,

05/15/2050

155‌

107‌

Albemarle

Corp

5.45%,

12/01/2044

150‌

136‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Chemicals

(continued)

Celanese

US

Holdings

LLC

6.05%,

03/15/2025

$

345‌

$

344‌

6.17%,

07/15/2027

345‌

340‌

6.38%,

07/15/2032

(e)

345‌

328‌

Dow

Chemical

Co/The

2.10%,

11/15/2030

165‌

133‌

3.60%,

11/15/2050

165‌

118‌

4.38%,

11/15/2042

230‌

190‌

4.80%,

05/15/2049

300‌

253‌

5.25%,

11/15/2041

280‌

261‌

9.40%,

05/15/2039

30‌

40‌

DuPont

de

Nemours

Inc

4.73%,

11/15/2028

475‌

468‌

5.32%,

11/15/2038

500‌

481‌

5.42%,

11/15/2048

245‌

233‌

Eastman

Chemical

Co

4.80%,

09/01/2042

100‌

84‌

Ecolab

Inc

1.30%,

01/30/2031

85‌

65‌

1.65%,

02/01/2027

350‌

310‌

2.13%,

08/15/2050

85‌

47‌

2.75%,

08/18/2055

307‌

183‌

4.80%,

03/24/2030

160‌

158‌

EIDP

Inc

1.70%,

07/15/2025

185‌

171‌

Linde

Inc/CT

1.10%,

08/10/2030

165‌

126‌

LYB

International

Finance

III

LLC

1.25%,

10/01/2025

84‌

75‌

2.25%,

10/01/2030

(e)

165‌

131‌

3.63%,

04/01/2051

165‌

110‌

4.20%,

10/15/2049

125‌

93‌

LyondellBasell

Industries

NV

4.63%,

02/26/2055

20‌

16‌

5.75%,

04/15/2024

130‌

130‌

Nutrien

Ltd

4.20%,

04/01/2029

600‌

564‌

4.90%,

06/01/2043

200‌

176‌

5.95%,

11/07/2025

155‌

158‌

PPG

Industries

Inc

1.20%,

03/15/2026

190‌

168‌

Sherwin-Williams

Co/The

2.20%,

03/15/2032

160‌

127‌

2.30%,

05/15/2030

160‌

132‌

2.95%,

08/15/2029

450‌

394‌

3.30%,

05/15/2050

160‌

109‌

3.80%,

08/15/2049

175‌

130‌

Westlake

Corp

3.13%,

08/15/2051

190‌

117‌

3.60%,

08/15/2026

350‌

329‌

$

8,117‌

Commercial

Mortgage

Backed

Securities

-

1.40%

BANK

2018-BNK10

3.69%,

02/15/2061

1,850‌

1,723‌

CFCRE

Commercial

Mortgage

Trust

2016-C4

3.28%,

05/10/2058

1,300‌

1,219‌

Citigroup

Commercial

Mortgage

Trust

2016-GC36

3.62%,

02/10/2049

1,000‌

940‌

COMM

2013-CCRE8

Mortgage

Trust

3.61%,

06/10/2046

(g)

415‌

413‌

COMM

2015-DC1

Mortgage

Trust

3.35%,

02/10/2048

1,000‌

952‌

COMM

2015-LC19

Mortgage

Trust

3.18%,

02/10/2048

1,000‌

953‌

COMM

2016-CR28

Mortgage

Trust

3.76%,

02/10/2049

1,000‌

950‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

139

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Commercial

Mortgage

Backed

Securities

(continued)

CSAIL

2016-C7

Commercial

Mortgage

Trust

3.31%,

11/15/2049

$

647‌

$

623‌

Fannie

Mae-Aces

2.41%,

10/25/2026

(g)

784‌

725‌

2.53%,

09/25/2024

672‌

644‌

2.70%,

06/25/2025

(g)

1,360‌

1,292‌

2.76%,

02/25/2027

(g)

797‌

750‌

2.96%,

02/25/2027

(g)

900‌

846‌

2.99%,

12/25/2027

(g)

719‌

671‌

3.31%,

07/25/2028

(g)

2,025‌

1,928‌

Freddie

Mac

Multifamily

Structured

Pass

Through

Certificates

2.67%,

03/25/2026

1,050‌

991‌

3.06%,

07/25/2023

(g)

750‌

743‌

3.06%,

12/25/2024

500‌

484‌

3.31%,

05/25/2023

(g)

801‌

794‌

3.32%,

02/25/2023

(g)

669‌

667‌

3.41%,

12/25/2026

1,500‌

1,439‌

3.53%,

10/25/2023

(g)

1,050‌

1,038‌

GS

Mortgage

Securities

Trust

2014-GC18

3.80%,

01/10/2047

296‌

291‌

GS

Mortgage

Securities

Trust

2015-GC34

3.51%,

10/10/2048

1,000‌

945‌

GS

Mortgage

Securities

Trust

2017-GS5

3.47%,

03/10/2050

1,799‌

1,717‌

GS

Mortgage

Securities

Trust

2018-GS9

3.99%,

03/10/2051

(g)

1,500‌

1,411‌

JPMBB

Commercial

Mortgage

Securities

Trust

2014-C22

3.80%,

09/15/2047

1,000‌

967‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

2015-C24

3.48%,

05/15/2048

854‌

811‌

Morgan

Stanley

Capital

I

Trust

2017-H1

3.26%,

06/15/2050

2,500‌

2,306‌

SG

Commercial

Mortgage

Securities

Trust

2016-C5

3.06%,

10/10/2048

1,000‌

921‌

UBS-Barclays

Commercial

Mortgage

Trust

2013-C6

3.24%,

04/10/2046

337‌

334‌

Wells

Fargo

Commercial

Mortgage

Trust

2015-C28

3.29%,

05/15/2048

1,515‌

1,441‌

WFRBS

Commercial

Mortgage

Trust

2013-C14

2.98%,

06/15/2046

51‌

51‌

$

31,980‌

Commercial

Services

-

0.25%

American

University/The

3.67%,

04/01/2049

125‌

96‌

Automatic

Data

Processing

Inc

1.70%,

05/15/2028

195‌

169‌

3.38%,

09/15/2025

500‌

484‌

California

Institute

of

Technology

4.32%,

08/01/2045

80‌

70‌

Global

Payments

Inc

1.20%,

03/01/2026

370‌

323‌

1.50%,

11/15/2024

195‌

181‌

2.65%,

02/15/2025

170‌

160‌

3.20%,

08/15/2029

170‌

144‌

4.15%,

08/15/2049

85‌

60‌

Leland

Stanford

Junior

University/The

3.65%,

05/01/2048

287‌

237‌

Massachusetts

Institute

of

Technology

3.89%,

07/01/2116

250‌

180‌

4.68%,

07/01/2114

250‌

213‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Commercial

Services

(continued)

Moody's

Corp

4.25%,

08/08/2032

$

175‌

$

164‌

5.25%,

07/15/2044

500‌

481‌

PayPal

Holdings

Inc

1.65%,

06/01/2025

160‌

149‌

2.30%,

06/01/2030

160‌

131‌

2.40%,

10/01/2024

160‌

153‌

2.85%,

10/01/2029

160‌

139‌

3.90%,

06/01/2027

(e)

185‌

178‌

4.40%,

06/01/2032

185‌

174‌

S&P

Global

Inc

1.25%,

08/15/2030

165‌

127‌

2.45%,

03/01/2027

(h)

295‌

269‌

2.50%,

12/01/2029

120‌

103‌

3.25%,

12/01/2049

120‌

86‌

3.70%,

03/01/2052

(h)

295‌

228‌

University

of

Southern

California

5.25%,

10/01/2111

30‌

29‌

Verisk

Analytics

Inc

4.00%,

06/15/2025

500‌

486‌

William

Marsh

Rice

University

3.57%,

05/15/2045

500‌

408‌

$

5,622‌

Computers

-

0.65%

Apple

Inc

0.55%,

08/20/2025

525‌

474‌

0.70%,

02/08/2026

350‌

311‌

1.13%,

05/11/2025

550‌

506‌

1.20%,

02/08/2028

345‌

292‌

1.25%,

08/20/2030

525‌

413‌

1.40%,

08/05/2028

190‌

161‌

1.65%,

05/11/2030

160‌

131‌

1.65%,

02/08/2031

175‌

141‌

1.70%,

08/05/2031

385‌

308‌

2.20%,

09/11/2029

165‌

143‌

2.38%,

02/08/2041

175‌

124‌

2.40%,

08/20/2050

525‌

327‌

2.65%,

05/11/2050

160‌

106‌

2.65%,

02/08/2051

175‌

115‌

2.70%,

08/05/2051

285‌

188‌

2.80%,

02/08/2061

175‌

111‌

2.90%,

09/12/2027

655‌

611‌

2.95%,

09/11/2049

165‌

117‌

3.20%,

05/13/2025

445‌

430‌

3.20%,

05/11/2027

320‌

303‌

3.25%,

08/08/2029

175‌

162‌

3.35%,

02/09/2027

535‌

512‌

3.35%,

08/08/2032

175‌

159‌

3.45%,

02/09/2045

30‌

24‌

3.75%,

09/12/2047

115‌

95‌

3.75%,

11/13/2047

150‌

123‌

3.85%,

05/04/2043

300‌

259‌

3.95%,

08/08/2052

175‌

149‌

4.65%,

02/23/2046

1,235‌

1,169‌

Dell

International

LLC

/

EMC

Corp

3.38%,

12/15/2041

(h)

200‌

134‌

3.45%,

12/15/2051

(h)

400‌

245‌

6.02%,

06/15/2026

1,000‌

1,020‌

8.10%,

07/15/2036

138‌

155‌

8.35%,

07/15/2046

83‌

95‌

Hewlett

Packard

Enterprise

Co

1.45%,

04/01/2024

465‌

444‌

4.90%,

10/15/2025

300‌

297‌

6.20%,

10/15/2035

80‌

82‌

6.35%,

10/15/2045

195‌

194‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

140

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Computers

(continued)

HP

Inc

1.45%,

06/17/2026

$

190‌

$

166‌

2.20%,

06/17/2025

240‌

224‌

3.00%,

06/17/2027

240‌

219‌

4.75%,

01/15/2028

175‌

170‌

6.00%,

09/15/2041

154‌

148‌

International

Business

Machines

Corp

2.20%,

02/09/2027

100‌

90‌

3.30%,

05/15/2026

1,050‌

999‌

3.50%,

05/15/2029

470‌

432‌

4.00%,

07/27/2025

165‌

162‌

4.00%,

06/20/2042

35‌

29‌

4.15%,

05/15/2039

230‌

198‌

4.25%,

05/15/2049

340‌

280‌

4.40%,

07/27/2032

(e)

165‌

157‌

4.70%,

02/19/2046

185‌

164‌

5.60%,

11/30/2039

92‌

93‌

5.88%,

11/29/2032

200‌

213‌

6.22%,

08/01/2027

351‌

371‌

NetApp

Inc

2.38%,

06/22/2027

160‌

142‌

$

14,887‌

Consumer

Products

-

0.05%

Church

&

Dwight

Co

Inc

3.15%,

08/01/2027

300‌

280‌

3.95%,

08/01/2047

300‌

234‌

Clorox

Co/The

1.80%,

05/15/2030

160‌

127‌

Kimberly-Clark

Corp

2.75%,

02/15/2026

400‌

377‌

2.88%,

02/07/2050

160‌

110‌

$

1,128‌

Cosmetics

&

Personal

Care

-

0.20%

Colgate-Palmolive

Co

3.10%,

08/15/2025

175‌

169‌

3.25%,

08/15/2032

175‌

158‌

Estee

Lauder

Cos

Inc/The

1.95%,

03/15/2031

170‌

137‌

2.00%,

12/01/2024

240‌

228‌

2.38%,

12/01/2029

240‌

206‌

GSK

Consumer

Healthcare

Capital

UK

PLC

3.13%,

03/24/2025

250‌

238‌

GSK

Consumer

Healthcare

Capital

US

LLC

3.38%,

03/24/2027

475‌

442‌

3.63%,

03/24/2032

370‌

325‌

4.00%,

03/24/2052

250‌

195‌

Procter

&

Gamble

Co/The

0.55%,

10/29/2025

240‌

215‌

1.20%,

10/29/2030

340‌

267‌

1.90%,

02/01/2027

115‌

104‌

2.30%,

02/01/2032

115‌

97‌

2.80%,

03/25/2027

660‌

618‌

3.55%,

03/25/2040

160‌

138‌

Unilever

Capital

Corp

1.38%,

09/14/2030

170‌

133‌

2.13%,

09/06/2029

115‌

97‌

2.60%,

05/05/2024

510‌

494‌

5.90%,

11/15/2032

230‌

247‌

$

4,508‌

Distribution

&

Wholesale

-

0.01%

WW

Grainger

Inc

4.60%,

06/15/2045

250‌

227‌

Diversified

Financial

Services

-

0.98%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

1.65%,

10/29/2024

1,440‌

1,328‌

1.75%,

10/29/2024

380‌

349‌

1.75%,

01/30/2026

170‌

150‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Diversified

Financial

Services

(continued)

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust  

(continued)

2.45%,

10/29/2026

$

225‌

$

197‌

2.88%,

08/14/2024

1,035‌

980‌

3.00%,

10/29/2028

245‌

205‌

3.30%,

01/30/2032

380‌

297‌

3.40%,

10/29/2033

275‌

209‌

3.88%,

01/23/2028

300‌

270‌

Air

Lease

Corp

1.88%,

08/15/2026

200‌

174‌

2.10%,

09/01/2028

385‌

314‌

2.30%,

02/01/2025

265‌

247‌

2.88%,

01/15/2026

385‌

356‌

2.88%,

01/15/2032

200‌

159‌

3.25%,

03/01/2025

500‌

474‌

3.25%,

10/01/2029

95‌

81‌

Ally

Financial

Inc

2.20%,

11/02/2028

190‌

148‌

4.75%,

06/09/2027

160‌

150‌

8.00%,

11/01/2031

540‌

557‌

American

Express

Co

1.65%,

11/04/2026

1,350‌

1,196‌

2.25%,

03/04/2025

195‌

184‌

3.30%,

05/03/2027

30‌

28‌

3.38%,

05/03/2024

130‌

127‌

4.05%,

05/03/2029

75‌

71‌

4.05%,

12/03/2042

25‌

21‌

BlackRock

Inc

2.10%,

02/25/2032

150‌

121‌

2.40%,

04/30/2030

125‌

107‌

3.50%,

03/18/2024

500‌

492‌

Brookfield

Finance

Inc

2.72%,

04/15/2031

190‌

152‌

3.50%,

03/30/2051

165‌

105‌

3.90%,

01/25/2028

400‌

367‌

Brookfield

Finance

LLC

/

Brookfield

Finance

Inc

3.45%,

04/15/2050

160‌

101‌

Capital

One

Financial

Corp

1.88%,

11/02/2027

(d)

125‌

109‌

Secured

Overnight

Financing

Rate

+

0.86%

2.36%,

07/29/2032

(d)

190‌

137‌

Secured

Overnight

Financing

Rate

+

1.34%

3.20%,

02/05/2025

415‌

399‌

3.75%,

04/24/2024

5‌

5‌

3.75%,

07/28/2026

1,000‌

942‌

4.20%,

10/29/2025

30‌

29‌

4.93%,

05/10/2028

(d)

255‌

247‌

Secured

Overnight

Financing

Rate

+

2.06%

Charles

Schwab

Corp/The

0.90%,

03/11/2026

315‌

279‌

1.15%,

05/13/2026

195‌

173‌

1.65%,

03/11/2031

315‌

245‌

1.95%,

12/01/2031

195‌

153‌

2.00%,

03/20/2028

385‌

338‌

3.45%,

02/13/2026

250‌

242‌

CME

Group

Inc

3.00%,

03/15/2025

530‌

512‌

5.30%,

09/15/2043

200‌

207‌

Credit

Suisse

USA

Inc

7.13%,

07/15/2032

300‌

303‌

Discover

Financial

Services

4.10%,

02/09/2027

500‌

471‌

Intercontinental

Exchange

Inc

1.85%,

09/15/2032

125‌

95‌

2.10%,

06/15/2030

160‌

130‌

2.65%,

09/15/2040

165‌

115‌

3.00%,

09/15/2060

165‌

102‌

3.75%,

12/01/2025

50‌

49‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

141

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Diversified

Financial

Services

(continued)

Intercontinental

Exchange

Inc  

(continued)

4.00%,

09/15/2027

$

365‌

$

353‌

4.25%,

09/21/2048

150‌

127‌

4.60%,

03/15/2033

185‌

178‌

4.95%,

06/15/2052

335‌

310‌

Jefferies

Financial

Group

Inc

2.63%,

10/15/2031

165‌

126‌

4.15%,

01/23/2030

400‌

357‌

6.50%,

01/20/2043

200‌

195‌

Mastercard

Inc

2.00%,

03/03/2025

210‌

199‌

2.00%,

11/18/2031

170‌

137‌

2.95%,

11/21/2026

500‌

471‌

2.95%,

03/15/2051

190‌

134‌

3.35%,

03/26/2030

80‌

73‌

3.85%,

03/26/2050

560‌

467‌

Nasdaq

Inc

2.50%,

12/21/2040

185‌

120‌

Nomura

Holdings

Inc

1.85%,

07/16/2025

330‌

301‌

2.33%,

01/22/2027

385‌

337‌

2.68%,

07/16/2030

330‌

264‌

ORIX

Corp

3.70%,

07/18/2027

300‌

280‌

Synchrony

Financial

4.25%,

08/15/2024

800‌

782‌

4.50%,

07/23/2025

20‌

19‌

Visa

Inc

1.10%,

02/15/2031

165‌

126‌

1.90%,

04/15/2027

475‌

428‌

2.00%,

08/15/2050

165‌

97‌

2.05%,

04/15/2030

155‌

131‌

2.70%,

04/15/2040

155‌

117‌

3.15%,

12/14/2025

600‌

578‌

3.65%,

09/15/2047

85‌

70‌

4.15%,

12/14/2035

215‌

203‌

4.30%,

12/14/2045

375‌

342‌

Western

Union

Co/The

6.20%,

11/17/2036

200‌

199‌

$

22,520‌

Electric

-

1.89%

AEP

Texas

Inc

2.10%,

07/01/2030

165‌

134‌

3.45%,

01/15/2050

55‌

39‌

3.45%,

05/15/2051

195‌

138‌

4.70%,

05/15/2032

65‌

62‌

5.25%,

05/15/2052

65‌

62‌

AEP

Transmission

Co

LLC

2.75%,

08/15/2051

190‌

120‌

4.00%,

12/01/2046

400‌

314‌

4.50%,

06/15/2052

90‌

79‌

AES

Corp/The

2.45%,

01/15/2031

180‌

143‌

Alabama

Power

Co

1.45%,

09/15/2030

160‌

125‌

3.13%,

07/15/2051

190‌

129‌

4.30%,

01/02/2046

400‌

332‌

Ameren

Corp

1.75%,

03/15/2028

190‌

160‌

Ameren

Illinois

Co

1.55%,

11/15/2030

180‌

142‌

3.25%,

03/15/2050

80‌

57‌

3.85%,

09/01/2032

115‌

107‌

American

Electric

Power

Co

Inc

1.00%,

11/01/2025

45‌

40‌

2.30%,

03/01/2030

160‌

131‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Appalachian

Power

Co

3.30%,

06/01/2027

$

200‌

$

187‌

7.00%,

04/01/2038

120‌

134‌

Arizona

Public

Service

Co

2.60%,

08/15/2029

270‌

225‌

2.65%,

09/15/2050

170‌

99‌

4.50%,

04/01/2042

77‌

63‌

Baltimore

Gas

and

Electric

Co

2.25%,

06/15/2031

190‌

154‌

4.55%,

06/01/2052

60‌

53‌

Berkshire

Hathaway

Energy

Co

1.65%,

05/15/2031

135‌

104‌

2.85%,

05/15/2051

180‌

118‌

3.80%,

07/15/2048

300‌

231‌

4.50%,

02/01/2045

325‌

283‌

4.60%,

05/01/2053

(h)

195‌

169‌

5.15%,

11/15/2043

15‌

14‌

6.13%,

04/01/2036

156‌

164‌

CenterPoint

Energy

Houston

Electric

LLC

3.35%,

04/01/2051

190‌

140‌

4.25%,

02/01/2049

300‌

261‌

4.85%,

10/01/2052

80‌

76‌

CenterPoint

Energy

Inc

1.45%,

06/01/2026

195‌

173‌

2.50%,

09/01/2024

90‌

86‌

2.95%,

03/01/2030

125‌

107‌

3.70%,

09/01/2049

90‌

67‌

CMS

Energy

Corp

3.75%,

12/01/2050

(d)

180‌

136‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.90%

Commonwealth

Edison

Co

3.00%,

03/01/2050

160‌

110‌

3.13%,

03/15/2051

190‌

131‌

4.00%,

03/01/2049

300‌

243‌

Connecticut

Light

and

Power

Co/The

0.75%,

12/01/2025

180‌

161‌

2.05%,

07/01/2031

190‌

153‌

3.20%,

03/15/2027

165‌

155‌

4.00%,

04/01/2048

500‌

417‌

Consolidated

Edison

Co

of

New

York

Inc

2.40%,

06/15/2031

195‌

159‌

3.00%,

12/01/2060

180‌

112‌

3.70%,

11/15/2059

80‌

58‌

3.88%,

06/15/2047

650‌

500‌

4.13%,

05/15/2049

300‌

244‌

4.20%,

03/15/2042

128‌

107‌

4.30%,

12/01/2056

230‌

184‌

5.85%,

03/15/2036

51‌

52‌

6.15%,

11/15/2052

155‌

166‌

6.75%,

04/01/2038

125‌

137‌

Constellation

Energy

Generation

LLC

6.25%,

10/01/2039

349‌

356‌

Consumers

Energy

Co

2.50%,

05/01/2060

160‌

90‌

3.10%,

08/15/2050

245‌

170‌

4.20%,

09/01/2052

175‌

150‌

Delmarva

Power

&

Light

Co

4.15%,

05/15/2045

350‌

281‌

Dominion

Energy

Inc

1.45%,

04/15/2026

190‌

169‌

3.30%,

04/15/2041

190‌

141‌

3.38%,

04/01/2030

155‌

137‌

4.70%,

12/01/2044

300‌

255‌

4.90%,

08/01/2041

77‌

68‌

5.38%,

11/15/2032

105‌

104‌

5.95%,

06/15/2035

400‌

402‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

142

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Dominion

Energy

South

Carolina

Inc

5.45%,

02/01/2041

$

77‌

$

76‌

DTE

Electric

Co

1.90%,

04/01/2028

435‌

378‌

2.25%,

03/01/2030

160‌

134‌

2.63%,

03/01/2031

155‌

132‌

3.95%,

03/01/2049

250‌

205‌

DTE

Energy

Co

1.05%,

06/01/2025

85‌

77‌

Duke

Energy

Carolinas

LLC

3.20%,

08/15/2049

450‌

315‌

4.00%,

09/30/2042

100‌

83‌

5.30%,

02/15/2040

362‌

358‌

Duke

Energy

Corp

0.90%,

09/15/2025

170‌

152‌

3.15%,

08/15/2027

15‌

14‌

3.30%,

06/15/2041

190‌

138‌

3.50%,

06/15/2051

190‌

132‌

3.75%,

09/01/2046

400‌

297‌

4.50%,

08/15/2032

175‌

164‌

5.00%,

08/15/2052

175‌

155‌

Duke

Energy

Florida

LLC

1.75%,

06/15/2030

160‌

127‌

2.50%,

12/01/2029

330‌

282‌

3.40%,

10/01/2046

300‌

215‌

5.65%,

04/01/2040

25‌

25‌

5.95%,

11/15/2052

155‌

165‌

6.40%,

06/15/2038

66‌

72‌

Duke

Energy

Indiana

LLC

2.75%,

04/01/2050

160‌

100‌

6.12%,

10/15/2035

77‌

78‌

6.45%,

04/01/2039

300‌

323‌

Duke

Energy

Ohio

Inc

2.13%,

06/01/2030

160‌

131‌

Duke

Energy

Progress

LLC

2.50%,

08/15/2050

165‌

99‌

Emera

US

Finance

LP

3.55%,

06/15/2026

25‌

23‌

4.75%,

06/15/2046

25‌

19‌

Entergy

Arkansas

LLC

2.65%,

06/15/2051

170‌

103‌

Entergy

Corp

0.90%,

09/15/2025

580‌

517‌

1.90%,

06/15/2028

115‌

97‌

2.40%,

06/15/2031

190‌

151‌

Entergy

Louisiana

LLC

2.90%,

03/15/2051

90‌

58‌

3.10%,

06/15/2041

190‌

141‌

4.75%,

09/15/2052

105‌

94‌

Entergy

Texas

Inc

1.75%,

03/15/2031

165‌

129‌

4.00%,

03/30/2029

300‌

283‌

4.50%,

03/30/2039

300‌

260‌

Evergy

Inc

2.45%,

09/15/2024

165‌

157‌

Evergy

Kansas

Central

Inc

4.25%,

12/01/2045

500‌

401‌

Evergy

Metro

Inc

2.25%,

06/01/2030

160‌

132‌

Eversource

Energy

0.80%,

08/15/2025

165‌

148‌

1.65%,

08/15/2030

165‌

128‌

Exelon

Corp

3.35%,

03/15/2032

(h)

195‌

169‌

4.45%,

04/15/2046

20‌

17‌

5.63%,

06/15/2035

300‌

304‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Florida

Power

&

Light

Co

2.45%,

02/03/2032

$

200‌

$

167‌

2.88%,

12/04/2051

195‌

131‌

3.15%,

10/01/2049

90‌

65‌

3.70%,

12/01/2047

200‌

160‌

4.05%,

10/01/2044

350‌

296‌

5.69%,

03/01/2040

48‌

50‌

Georgia

Power

Co

2.20%,

09/15/2024

165‌

157‌

4.30%,

03/15/2042

228‌

196‌

4.70%,

05/15/2032

185‌

178‌

Gulf

Power

Co

3.30%,

05/30/2027

400‌

376‌

Hydro-Quebec

8.05%,

07/07/2024

102‌

107‌

Iberdrola

International

BV

6.75%,

07/15/2036

128‌

135‌

Interstate

Power

and

Light

Co

2.30%,

06/01/2030

40‌

33‌

4.10%,

09/26/2028

300‌

286‌

Kentucky

Utilities

Co

3.30%,

06/01/2050

155‌

109‌

5.13%,

11/01/2040

250‌

237‌

MidAmerican

Energy

Co

3.15%,

04/15/2050

165‌

117‌

3.65%,

04/15/2029

300‌

280‌

4.25%,

07/15/2049

300‌

254‌

Mississippi

Power

Co

4.25%,

03/15/2042

100‌

81‌

National

Rural

Utilities

Cooperative

Finance

Corp

0.35%,

02/08/2024

155‌

147‌

1.00%,

06/15/2026

190‌

167‌

2.40%,

03/15/2030

105‌

87‌

3.05%,

04/25/2027

300‌

278‌

3.25%,

11/01/2025

500‌

477‌

4.15%,

12/15/2032

175‌

162‌

4.80%,

03/15/2028

115‌

114‌

Nevada

Power

Co

2.40%,

05/01/2030

200‌

168‌

NextEra

Energy

Capital

Holdings

Inc

1.90%,

06/15/2028

195‌

166‌

2.25%,

06/01/2030

450‌

370‌

2.75%,

11/01/2029

115‌

99‌

4.20%,

06/20/2024

175‌

173‌

5.00%,

07/15/2032

175‌

172‌

5.65%,

05/01/2079

(d)

500‌

454‌

3

Month

USD

LIBOR

+

3.16%

Northern

States

Power

Co/MN

2.25%,

04/01/2031

190‌

158‌

2.60%,

06/01/2051

160‌

101‌

2.90%,

03/01/2050

80‌

55‌

3.40%,

08/15/2042

100‌

78‌

5.35%,

11/01/2039

82‌

83‌

NorthWestern

Corp

4.18%,

11/15/2044

300‌

243‌

NSTAR

Electric

Co

4.55%,

06/01/2052

185‌

166‌

4.95%,

09/15/2052

80‌

77‌

Ohio

Power

Co

1.63%,

01/15/2031

150‌

116‌

Oncor

Electric

Delivery

Co

LLC

0.55%,

10/01/2025

165‌

147‌

2.75%,

06/01/2024

300‌

290‌

3.10%,

09/15/2049

430‌

304‌

4.15%,

06/01/2032

(h)

185‌

175‌

4.55%,

09/15/2032

(h)

115‌

113‌

4.60%,

06/01/2052

(h)

185‌

169‌

5.25%,

09/30/2040

51‌

51‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

143

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Pacific

Gas

and

Electric

Co

2.10%,

08/01/2027

$

1,160‌

$

991‌

2.50%,

02/01/2031

320‌

248‌

3.30%,

08/01/2040

160‌

108‌

3.50%,

08/01/2050

1,160‌

721‌

4.20%,

06/01/2041

190‌

141‌

4.95%,

06/08/2025

455‌

448‌

5.90%,

06/15/2032

150‌

146‌

PacifiCorp

2.90%,

06/15/2052

190‌

124‌

5.35%,

12/01/2053

155‌

153‌

6.25%,

10/15/2037

92‌

98‌

PECO

Energy

Co

2.80%,

06/15/2050

425‌

278‌

2.85%,

09/15/2051

175‌

115‌

4.38%,

08/15/2052

115‌

101‌

4.60%,

05/15/2052

55‌

49‌

PPL

Electric

Utilities

Corp

3.00%,

10/01/2049

80‌

54‌

3.95%,

06/01/2047

300‌

243‌

Progress

Energy

Inc

7.75%,

03/01/2031

136‌

154‌

Public

Service

Co

of

Colorado

1.88%,

06/15/2031

155‌

123‌

2.70%,

01/15/2051

495‌

319‌

3.70%,

06/15/2028

300‌

285‌

4.50%,

06/01/2052

60‌

54‌

Public

Service

Electric

and

Gas

Co

2.05%,

08/01/2050

165‌

92‌

2.45%,

01/15/2030

160‌

137‌

3.00%,

05/15/2027

400‌

374‌

3.15%,

01/01/2050

160‌

112‌

3.65%,

09/01/2042

200‌

159‌

Public

Service

Enterprise

Group

Inc

0.80%,

08/15/2025

330‌

296‌

Puget

Sound

Energy

Inc

2.89%,

09/15/2051

170‌

109‌

3.25%,

09/15/2049

60‌

41‌

5.80%,

03/15/2040

351‌

352‌

San

Diego

Gas

&

Electric

Co

1.70%,

10/01/2030

170‌

134‌

3.32%,

04/15/2050

155‌

111‌

3.70%,

03/15/2052

195‌

153‌

Sempra

Energy

3.40%,

02/01/2028

300‌

278‌

3.80%,

02/01/2038

300‌

246‌

4.00%,

02/01/2048

400‌

312‌

6.00%,

10/15/2039

112‌

113‌

Southern

California

Edison

Co

2.25%,

06/01/2030

160‌

132‌

2.85%,

08/01/2029

125‌

109‌

3.45%,

02/01/2052

200‌

142‌

3.65%,

02/01/2050

315‌

230‌

4.00%,

04/01/2047

585‌

457‌

4.70%,

06/01/2027

365‌

357‌

5.50%,

03/15/2040

102‌

98‌

5.85%,

11/01/2027

155‌

160‌

5.95%,

02/01/2038

367‌

370‌

Southern

Co/The

1.75%,

03/15/2028

190‌

160‌

3.25%,

07/01/2026

570‌

536‌

3.75%,

09/15/2051

(d)

435‌

351‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%

4.00%,

01/15/2051

(d)

170‌

155‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.73%

5.15%,

10/06/2025

90‌

91‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Southern

Co/The  

(continued)

5.70%,

10/15/2032

$

60‌

$

61‌

Southern

Power

Co

0.90%,

01/15/2026

40‌

35‌

5.25%,

07/15/2043

200‌

180‌

Southwestern

Electric

Power

Co

4.10%,

09/15/2028

400‌

379‌

6.20%,

03/15/2040

51‌

52‌

Tampa

Electric

Co

3.45%,

03/15/2051

185‌

129‌

4.35%,

05/15/2044

200‌

166‌

Tucson

Electric

Power

Co

1.50%,

08/01/2030

455‌

348‌

3.25%,

05/01/2051

195‌

128‌

Union

Electric

Co

2.15%,

03/15/2032

190‌

150‌

2.63%,

03/15/2051

165‌

104‌

3.50%,

04/15/2024

500‌

491‌

Virginia

Electric

and

Power

Co

2.30%,

11/15/2031

195‌

157‌

2.45%,

12/15/2050

90‌

53‌

2.88%,

07/15/2029

90‌

79‌

2.95%,

11/15/2051

380‌

250‌

3.75%,

05/15/2027

115‌

110‌

4.20%,

05/15/2045

600‌

488‌

6.00%,

05/15/2037

77‌

80‌

8.88%,

11/15/2038

10‌

13‌

WEC

Energy

Group

Inc

1.38%,

10/15/2027

165‌

140‌

2.20%,

12/15/2028

200‌

169‌

5.00%,

09/27/2025

80‌

80‌

Wisconsin

Electric

Power

Co

2.05%,

12/15/2024

65‌

62‌

4.75%,

09/30/2032

120‌

118‌

Wisconsin

Public

Service

Corp

2.85%,

12/01/2051

195‌

125‌

Xcel

Energy

Inc

1.75%,

03/15/2027

280‌

245‌

2.60%,

12/01/2029

115‌

98‌

4.60%,

06/01/2032

110‌

105‌

$

43,218‌

Electrical

Components

&

Equipment

-

0.03%

Emerson

Electric

Co

0.88%,

10/15/2026

550‌

476‌

2.20%,

12/21/2031

400‌

323‌

$

799‌

Electronics

-

0.09%

Agilent

Technologies

Inc

2.10%,

06/04/2030

160‌

129‌

2.30%,

03/12/2031

195‌

157‌

Fortive

Corp

3.15%,

06/15/2026

535‌

500‌

Honeywell

International

Inc

1.10%,

03/01/2027

190‌

165‌

1.35%,

06/01/2025

75‌

69‌

1.75%,

09/01/2031

190‌

150‌

1.95%,

06/01/2030

310‌

256‌

2.50%,

11/01/2026

50‌

46‌

2.70%,

08/15/2029

85‌

76‌

2.80%,

06/01/2050

(e)

160‌

114‌

5.00%,

02/15/2033

155‌

158‌

Jabil

Inc

1.70%,

04/15/2026

190‌

168‌

Tyco

Electronics

Group

SA

7.13%,

10/01/2037

14‌

16‌

$

2,004‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

144

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Entertainment

-

0.12%

Warnermedia

Holdings

Inc

3.43%,

03/15/2024

(h)

$

390‌

$

379‌

3.64%,

03/15/2025

(h)

395‌

376‌

3.76%,

03/15/2027

(h)

395‌

356‌

4.05%,

03/15/2029

(h)

390‌

337‌

4.28%,

03/15/2032

(h)

290‌

239‌

5.05%,

03/15/2042

(h)

395‌

302‌

5.14%,

03/15/2052

(h)

295‌

214‌

5.39%,

03/15/2062

(h)

635‌

463‌

$

2,666‌

Environmental

Control

-

0.07%

Republic

Services

Inc

1.75%,

02/15/2032

90‌

69‌

2.30%,

03/01/2030

340‌

285‌

2.50%,

08/15/2024

215‌

206‌

Waste

Connections

Inc

2.20%,

01/15/2032

385‌

306‌

4.20%,

01/15/2033

345‌

320‌

Waste

Management

Inc

0.75%,

11/15/2025

90‌

81‌

2.00%,

06/01/2029

195‌

165‌

2.50%,

11/15/2050

180‌

112‌

4.15%,

04/15/2032

(e)

95‌

90‌

$

1,634‌

Federal

&

Federally

Sponsored

Credit

-

0.07%

Federal

Farm

Credit

Banks

Funding

Corp

0.25%,

02/26/2024

385‌

366‌

2.63%,

05/16/2024

365‌

355‌

4.25%,

09/26/2024

315‌

313‌

4.50%,

11/18/2024

460‌

459‌

$

1,493‌

Finance

-

Mortgage

Loan/Banker

-

0.66%

Fannie

Mae

0.50%,

06/17/2025

370‌

337‌

0.50%,

11/07/2025

360‌

324‌

0.75%,

10/08/2027

500‌

431‌

0.88%,

08/05/2030

680‌

540‌

2.13%,

04/24/2026

1,150‌

1,078‌

2.50%,

02/05/2024

500‌

488‌

2.63%,

09/06/2024

750‌

727‌

5.63%,

07/15/2037

200‌

223‌

6.63%,

11/15/2030

602‌

706‌

7.13%,

01/15/2030

199‌

236‌

7.25%,

05/15/2030

280‌

336‌

Federal

Home

Loan

Banks

0.38%,

09/04/2025

470‌

423‌

2.50%,

02/13/2024

1,000‌

975‌

2.75%,

06/28/2024

710‌

690‌

3.25%,

11/16/2028

2,000‌

1,920‌

4.50%,

10/03/2024

1,195‌

1,194‌

5.50%,

07/15/2036

700‌

769‌

Freddie

Mac

0.38%,

09/23/2025

3,160‌

2,844‌

6.25%,

07/15/2032

231‌

269‌

6.75%,

03/15/2031

577‌

681‌

$

15,191‌

Food

-

0.31%

Campbell

Soup

Co

3.95%,

03/15/2025

350‌

342‌

4.15%,

03/15/2028

160‌

153‌

Conagra

Brands

Inc

1.38%,

11/01/2027

125‌

104‌

4.85%,

11/01/2028

205‌

200‌

5.30%,

11/01/2038

120‌

113‌

5.40%,

11/01/2048

120‌

111‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Food

(continued)

General

Mills

Inc

2.25%,

10/14/2031

$

170‌

$

137‌

4.00%,

04/17/2025

300‌

293‌

Hershey

Co/The

1.70%,

06/01/2030

160‌

128‌

3.38%,

08/15/2046

350‌

262‌

J

M

Smucker

Co/The

2.13%,

03/15/2032

195‌

151‌

JBS

USA

LUX

SA

/

JBS

USA

Food

Co

/

JBS

USA

Finance

Inc

5.13%,

02/01/2028

(h)

325‌

308‌

5.75%,

04/01/2033

(h)

325‌

310‌

6.50%,

12/01/2052

(h)

325‌

309‌

Kellogg

Co

2.10%,

06/01/2030

160‌

130‌

3.25%,

04/01/2026

500‌

475‌

Koninklijke

Ahold

Delhaize

NV

5.70%,

10/01/2040

30‌

30‌

Kroger

Co/The

1.70%,

01/15/2031

190‌

147‌

3.70%,

08/01/2027

300‌

284‌

3.95%,

01/15/2050

175‌

136‌

4.45%,

02/01/2047

55‌

46‌

5.15%,

08/01/2043

300‌

276‌

5.40%,

07/15/2040

25‌

24‌

McCormick

&

Co

Inc/MD

0.90%,

02/15/2026

190‌

166‌

1.85%,

02/15/2031

190‌

147‌

Mondelez

International

Inc

1.50%,

02/04/2031

105‌

81‌

2.63%,

03/17/2027

195‌

177‌

2.63%,

09/04/2050

625‌

388‌

Sysco

Corp

2.40%,

02/15/2030

135‌

112‌

2.45%,

12/14/2031

115‌

92‌

4.50%,

04/01/2046

300‌

251‌

4.85%,

10/01/2045

250‌

220‌

5.38%,

09/21/2035

500‌

487‌

Tyson

Foods

Inc

4.55%,

06/02/2047

520‌

445‌

$

7,035‌

Forest

Products

&

Paper

-

0.06%

Celulosa

Arauco

y

Constitucion

SA

4.50%,

08/01/2024

500‌

492‌

Georgia-Pacific

LLC

7.75%,

11/15/2029

51‌

58‌

8.00%,

01/15/2024

228‌

235‌

International

Paper

Co

4.80%,

06/15/2044

223‌

192‌

Suzano

Austria

GmbH

2.50%,

09/15/2028

90‌

76‌

5.00%,

01/15/2030

300‌

281‌

$

1,334‌

Gas

-

0.12%

Atmos

Energy

Corp

1.50%,

01/15/2031

165‌

128‌

3.38%,

09/15/2049

165‌

120‌

4.13%,

10/15/2044

400‌

328‌

5.75%,

10/15/2052

105‌

110‌

CenterPoint

Energy

Resources

Corp

1.75%,

10/01/2030

165‌

130‌

4.40%,

07/01/2032

175‌

168‌

Eastern

Energy

Gas

Holdings

LLC

2.50%,

11/15/2024

155‌

148‌

NiSource

Inc

0.95%,

08/15/2025

330‌

297‌

3.49%,

05/15/2027

20‌

19‌

3.60%,

05/01/2030

150‌

134‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

145

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Gas

(continued)

NiSource

Inc  

(continued)

5.00%,

06/15/2052

$

355‌

$

323‌

5.95%,

06/15/2041

402‌

406‌

Southern

California

Gas

Co

2.55%,

02/01/2030

160‌

136‌

Southern

Co

Gas

Capital

Corp

1.75%,

01/15/2031

165‌

126‌

3.15%,

09/30/2051

195‌

126‌

Washington

Gas

Light

Co

3.65%,

09/15/2049

95‌

69‌

$

2,768‌

Hand

&

Machine

Tools

-

0.03%

Stanley

Black

&

Decker

Inc

2.30%,

03/15/2030

735‌

602‌

2.75%,

11/15/2050

175‌

107‌

$

709‌

Healthcare

-

Products

-

0.29%

Abbott

Laboratories

1.15%,

01/30/2028

250‌

212‌

1.40%,

06/30/2030

330‌

262‌

3.75%,

11/30/2026

266‌

259‌

4.75%,

11/30/2036

40‌

40‌

4.90%,

11/30/2046

500‌

487‌

5.30%,

05/27/2040

200‌

203‌

Baxter

International

Inc

1.73%,

04/01/2031

175‌

133‌

1.92%,

02/01/2027

395‌

350‌

2.27%,

12/01/2028

195‌

166‌

Boston

Scientific

Corp

1.90%,

06/01/2025

160‌

149‌

2.65%,

06/01/2030

160‌

137‌

3.45%,

03/01/2024

263‌

258‌

4.70%,

03/01/2049

17‌

15‌

7.38%,

01/15/2040

51‌

59‌

Danaher

Corp

2.60%,

10/01/2050

165‌

105‌

DH

Europe

Finance

II

Sarl

2.60%,

11/15/2029

155‌

136‌

3.25%,

11/15/2039

155‌

124‌

GE

HealthCare

Technologies

Inc

5.60%,

11/15/2025

(h)

155‌

156‌

5.65%,

11/15/2027

(h)

155‌

157‌

5.86%,

03/15/2030

(h)

155‌

159‌

5.91%,

11/22/2032

(h)

155‌

161‌

6.38%,

11/22/2052

(h)

155‌

165‌

Koninklijke

Philips

NV

5.00%,

03/15/2042

128‌

112‌

Medtronic

Inc

4.38%,

03/15/2035

665‌

629‌

PerkinElmer

Inc

0.85%,

09/15/2024

120‌

111‌

1.90%,

09/15/2028

155‌

128‌

Stryker

Corp

3.50%,

03/15/2026

500‌

480‌

4.10%,

04/01/2043

200‌

164‌

4.63%,

03/15/2046

20‌

18‌

Thermo

Fisher

Scientific

Inc

1.22%,

10/18/2024

385‌

361‌

2.00%,

10/15/2031

190‌

154‌

2.60%,

10/01/2029

160‌

141‌

2.80%,

10/15/2041

250‌

184‌

4.80%,

11/21/2027

155‌

155‌

Zimmer

Biomet

Holdings

Inc

2.60%,

11/24/2031

165‌

134‌

$

6,664‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Healthcare

-

Services

-

0.62%

Aetna

Inc

3.50%,

11/15/2024

$

300‌

$

291‌

4.13%,

11/15/2042

100‌

82‌

6.63%,

06/15/2036

105‌

112‌

6.75%,

12/15/2037

112‌

120‌

Ascension

Health

3.95%,

11/15/2046

500‌

413‌

Baylor

Scott

&

White

Holdings

3.97%,

11/15/2046

232‌

187‌

Centene

Corp

4.63%,

12/15/2029

500‌

457‌

Children's

Hospital

Medical

Center/Cincinnati

OH

4.27%,

05/15/2044

215‌

189‌

CommonSpirit

Health

4.35%,

11/01/2042

200‌

169‌

Elevance

Health

Inc

1.50%,

03/15/2026

190‌

171‌

2.88%,

09/15/2029

120‌

105‌

3.13%,

05/15/2050

600‌

411‌

3.60%,

03/15/2051

190‌

142‌

3.65%,

12/01/2027

300‌

283‌

4.10%,

05/15/2032

170‌

158‌

4.38%,

12/01/2047

300‌

256‌

4.63%,

05/15/2042

30‌

27‌

4.65%,

01/15/2043

115‌

104‌

6.10%,

10/15/2052

150‌

160‌

HCA

Inc

2.38%,

07/15/2031

190‌

148‌

3.38%,

03/15/2029

(h)

390‌

343‌

3.50%,

07/15/2051

190‌

122‌

4.38%,

03/15/2042

(h)

195‌

155‌

4.50%,

02/15/2027

800‌

771‌

5.25%,

06/15/2026

750‌

741‌

Humana

Inc

1.35%,

02/03/2027

190‌

164‌

2.15%,

02/03/2032

190‌

148‌

3.13%,

08/15/2029

85‌

75‌

4.50%,

04/01/2025

160‌

158‌

4.95%,

10/01/2044

325‌

293‌

Kaiser

Foundation

Hospitals

3.27%,

11/01/2049

230‌

166‌

4.15%,

05/01/2047

470‌

398‌

Laboratory

Corp

of

America

Holdings

2.30%,

12/01/2024

310‌

293‌

2.95%,

12/01/2029

310‌

267‌

4.70%,

02/01/2045

115‌

99‌

Mass

General

Brigham

Inc

3.19%,

07/01/2049

315‌

217‌

4.12%,

07/01/2055

300‌

237‌

Memorial

Sloan-Kettering

Cancer

Center

4.13%,

07/01/2052

200‌

167‌

4.20%,

07/01/2055

250‌

204‌

Mount

Sinai

Hospitals

Group

Inc

3.98%,

07/01/2048

400‌

309‌

Quest

Diagnostics

Inc

2.95%,

06/30/2030

155‌

134‌

UnitedHealth

Group

Inc

0.55%,

05/15/2024

195‌

184‌

1.25%,

01/15/2026

160‌

145‌

2.00%,

05/15/2030

160‌

132‌

2.30%,

05/15/2031

195‌

162‌

2.38%,

08/15/2024

250‌

240‌

2.75%,

05/15/2040

160‌

116‌

2.88%,

08/15/2029

175‌

156‌

2.90%,

05/15/2050

160‌

108‌

3.05%,

05/15/2041

195‌

147‌

3.25%,

05/15/2051

120‌

86‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

146

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Healthcare

-

Services

(continued)

UnitedHealth

Group

Inc  

(continued)

3.45%,

01/15/2027

$

440‌

$

419‌

3.50%,

08/15/2039

200‌

163‌

3.70%,

05/15/2027

(e)

185‌

179‌

3.70%,

08/15/2049

350‌

277‌

4.20%,

05/15/2032

185‌

176‌

4.25%,

06/15/2048

165‌

143‌

4.45%,

12/15/2048

120‌

107‌

4.63%,

07/15/2035

30‌

29‌

4.75%,

07/15/2045

700‌

655‌

4.75%,

05/15/2052

185‌

171‌

5.25%,

02/15/2028

295‌

302‌

5.35%,

02/15/2033

295‌

304‌

5.88%,

02/15/2053

295‌

319‌

6.50%,

06/15/2037

77‌

86‌

$

14,252‌

Home

Builders

-

0.01%

DR

Horton

Inc

1.30%,

10/15/2026

190‌

163‌

1.40%,

10/15/2027

(e)

165‌

138‌

$

301‌

Insurance

-

0.67%

Aflac

Inc

1.13%,

03/15/2026

195‌

173‌

Allied

World

Assurance

Co

Holdings

Ltd

4.35%,

10/29/2025

500‌

479‌

Allstate

Corp/The

0.75%,

12/15/2025

160‌

142‌

1.45%,

12/15/2030

160‌

123‌

3.28%,

12/15/2026

500‌

475‌

5.55%,

05/09/2035

200‌

204‌

American

International

Group

Inc

4.80%,

07/10/2045

50‌

45‌

Aon

Corp

2.80%,

05/15/2030

160‌

136‌

Aon

Corp

/

Aon

Global

Holdings

PLC

2.60%,

12/02/2031

245‌

200‌

2.85%,

05/28/2027

195‌

179‌

2.90%,

08/23/2051

195‌

124‌

5.00%,

09/12/2032

90‌

89‌

Arch

Capital

Finance

LLC

5.03%,

12/15/2046

250‌

215‌

Arch

Capital

Group

US

Inc

5.14%,

11/01/2043

375‌

335‌

Athene

Holding

Ltd

4.13%,

01/12/2028

500‌

458‌

Berkshire

Hathaway

Finance

Corp

1.45%,

10/15/2030

165‌

131‌

1.85%,

03/12/2030

80‌

67‌

2.30%,

03/15/2027

195‌

180‌

2.50%,

01/15/2051

190‌

119‌

2.85%,

10/15/2050

125‌

83‌

2.88%,

03/15/2032

195‌

169‌

4.20%,

08/15/2048

285‌

251‌

4.25%,

01/15/2049

400‌

356‌

4.30%,

05/15/2043

300‌

269‌

5.75%,

01/15/2040

115‌

125‌

Berkshire

Hathaway

Inc

3.13%,

03/15/2026

350‌

335‌

4.50%,

02/11/2043

25‌

23‌

Chubb

Corp/The

6.50%,

05/15/2038

10‌

11‌

Chubb

INA

Holdings

Inc

1.38%,

09/15/2030

335‌

260‌

2.85%,

12/15/2051

100‌

66‌

3.35%,

05/03/2026

30‌

29‌

4.35%,

11/03/2045

25‌

22‌

6.70%,

05/15/2036

250‌

278‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

CNA

Financial

Corp

2.05%,

08/15/2030

$

165‌

$

130‌

Corebridge

Financial

Inc

3.50%,

04/04/2025

(h)

200‌

192‌

3.85%,

04/05/2029

(h)

200‌

182‌

3.90%,

04/05/2032

(h)

200‌

175‌

Equitable

Holdings

Inc

4.35%,

04/20/2028

605‌

576‌

Hartford

Financial

Services

Group

Inc/The

2.90%,

09/15/2051

165‌

104‌

3.60%,

08/19/2049

170‌

122‌

4.30%,

04/15/2043

250‌

200‌

Lincoln

National

Corp

4.35%,

03/01/2048

55‌

41‌

7.00%,

06/15/2040

47‌

49‌

Loews

Corp

4.13%,

05/15/2043

200‌

162‌

Manulife

Financial

Corp

5.38%,

03/04/2046

250‌

240‌

Markel

Corp

3.45%,

05/07/2052

250‌

168‌

Marsh

&

McLennan

Cos

Inc

2.38%,

12/15/2031

150‌

121‌

3.88%,

03/15/2024

500‌

493‌

4.38%,

03/15/2029

50‌

48‌

4.90%,

03/15/2049

400‌

368‌

6.25%,

11/01/2052

150‌

166‌

MetLife

Inc

3.00%,

03/01/2025

300‌

288‌

3.60%,

04/10/2024

250‌

245‌

4.05%,

03/01/2045

400‌

334‌

4.60%,

05/13/2046

225‌

202‌

4.88%,

11/13/2043

20‌

19‌

5.70%,

06/15/2035

164‌

172‌

6.40%,

12/15/2066

288‌

279‌

Progressive

Corp/The

3.20%,

03/26/2030

160‌

144‌

3.70%,

03/15/2052

165‌

127‌

4.35%,

04/25/2044

200‌

171‌

Prudential

Financial

Inc

2.10%,

03/10/2030

160‌

133‌

3.70%,

10/01/2050

(d)

165‌

139‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.04%

3.70%,

03/13/2051

630‌

481‌

3.91%,

12/07/2047

177‌

141‌

5.20%,

03/15/2044

(d)

350‌

333‌

3

Month

USD

LIBOR

+

3.04%

5.70%,

12/14/2036

25‌

26‌

5.70%,

09/15/2048

(d)

400‌

382‌

3

Month

USD

LIBOR

+

2.67%

Travelers

Cos

Inc/The

3.05%,

06/08/2051

270‌

184‌

4.00%,

05/30/2047

400‌

323‌

6.25%,

06/15/2037

12‌

13‌

6.75%,

06/20/2036

51‌

57‌

Trinity

Acquisition

PLC

4.40%,

03/15/2026

500‌

485‌

W

R

Berkley

Corp

4.00%,

05/12/2050

85‌

64‌

Willis

North

America

Inc

2.95%,

09/15/2029

55‌

46‌

3.60%,

05/15/2024

300‌

292‌

3.88%,

09/15/2049

165‌

117‌

XLIT

Ltd

5.25%,

12/15/2043

400‌

390‌

$

15,275‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

147

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Internet

-

0.52%

Alibaba

Group

Holding

Ltd

2.13%,

02/09/2031

(e)

$

200‌

$

159‌

3.15%,

02/09/2051

300‌

186‌

3.40%,

12/06/2027

325‌

299‌

3.60%,

11/28/2024

300‌

290‌

4.20%,

12/06/2047

575‌

439‌

4.40%,

12/06/2057

305‌

233‌

Alphabet

Inc

0.80%,

08/15/2027

330‌

283‌

1.10%,

08/15/2030

165‌

129‌

1.90%,

08/15/2040

165‌

109‌

2.00%,

08/15/2026

30‌

28‌

2.05%,

08/15/2050

165‌

96‌

2.25%,

08/15/2060

165‌

93‌

3.38%,

02/25/2024

530‌

530‌

Amazon.com

Inc

0.45%,

05/12/2024

365‌

344‌

1.20%,

06/03/2027

465‌

403‌

1.50%,

06/03/2030

465‌

374‌

1.65%,

05/12/2028

560‌

481‌

2.10%,

05/12/2031

365‌

298‌

2.88%,

05/12/2041

365‌

272‌

3.00%,

04/13/2025

300‌

289‌

3.10%,

05/12/2051

365‌

260‌

3.15%,

08/22/2027

490‌

460‌

3.25%,

05/12/2061

385‌

264‌

3.30%,

04/13/2027

380‌

361‌

3.60%,

04/13/2032

380‌

348‌

3.80%,

12/05/2024

20‌

20‌

3.88%,

08/22/2037

340‌

301‌

3.95%,

04/13/2052

190‌

157‌

4.05%,

08/22/2047

30‌

26‌

4.60%,

12/01/2025

280‌

279‌

4.65%,

12/01/2029

280‌

278‌

4.70%,

12/01/2032

280‌

277‌

4.80%,

12/05/2034

30‌

30‌

4.95%,

12/05/2044

240‌

236‌

Baidu

Inc

1.72%,

04/09/2026

200‌

178‌

2.38%,

10/09/2030

200‌

160‌

3.08%,

04/07/2025

(e)

200‌

188‌

4.13%,

06/30/2025

(e)

500‌

479‌

eBay

Inc

1.90%,

03/11/2025

160‌

150‌

2.60%,

05/10/2031

(e)

195‌

160‌

3.45%,

08/01/2024

605‌

588‌

4.00%,

07/15/2042

100‌

79‌

5.95%,

11/22/2027

155‌

159‌

Expedia

Group

Inc

2.95%,

03/15/2031

195‌

157‌

Meta

Platforms

Inc

3.50%,

08/15/2027

345‌

322‌

3.85%,

08/15/2032

345‌

304‌

4.45%,

08/15/2052

300‌

238‌

$

11,794‌

Iron

&

Steel

-

0.08%

Nucor

Corp

2.00%,

06/01/2025

155‌

144‌

3.13%,

04/01/2032

195‌

165‌

4.30%,

05/23/2027

185‌

180‌

Steel

Dynamics

Inc

1.65%,

10/15/2027

85‌

71‌

2.40%,

06/15/2025

40‌

38‌

2.80%,

12/15/2024

500‌

475‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Iron

&

Steel

(continued)

Vale

Overseas

Ltd

6.25%,

08/10/2026

$

400‌

$

414‌

6.88%,

11/21/2036

317‌

335‌

8.25%,

01/17/2034

38‌

45‌

$

1,867‌

Lodging

-

0.02%

Marriott

International

Inc/MD

2.85%,

04/15/2031

195‌

158‌

5.00%,

10/15/2027

300‌

296‌

$

454‌

Machinery

-

Construction

&

Mining

-

0.10%

Caterpillar

Financial

Services

Corp

0.45%,

05/17/2024

195‌

184‌

0.80%,

11/13/2025

180‌

161‌

0.95%,

01/10/2024

200‌

193‌

1.10%,

09/14/2027

335‌

286‌

1.15%,

09/14/2026

195‌

172‌

3.40%,

05/13/2025

365‌

355‌

3.65%,

08/12/2025

175‌

171‌

4.90%,

01/17/2025

155‌

155‌

Caterpillar

Inc

2.60%,

04/09/2030

150‌

130‌

3.25%,

09/19/2049

160‌

121‌

3.40%,

05/15/2024

30‌

29‌

3.80%,

08/15/2042

105‌

89‌

6.05%,

08/15/2036

132‌

144‌

$

2,190‌

Machinery

-

Diversified

-

0.14%

CNH

Industrial

Capital

LLC

1.45%,

07/15/2026

200‌

176‌

1.88%,

01/15/2026

165‌

150‌

Deere

&

Co

2.88%,

09/07/2049

165‌

118‌

3.10%,

04/15/2030

160‌

143‌

3.90%,

06/09/2042

30‌

26‌

5.38%,

10/16/2029

100‌

104‌

Dover

Corp

5.38%,

03/01/2041

77‌

74‌

John

Deere

Capital

Corp

0.70%,

01/15/2026

155‌

138‌

1.05%,

06/17/2026

190‌

169‌

1.50%,

03/06/2028

190‌

162‌

2.00%,

06/17/2031

195‌

157‌

2.05%,

01/09/2025

160‌

152‌

2.35%,

03/08/2027

195‌

177‌

2.80%,

07/18/2029

185‌

165‌

3.40%,

06/06/2025

175‌

170‌

4.15%,

09/15/2027

205‌

201‌

4.35%,

09/15/2032

120‌

116‌

4.55%,

10/11/2024

120‌

120‌

Otis

Worldwide

Corp

2.06%,

04/05/2025

160‌

150‌

2.57%,

02/15/2030

160‌

134‌

3.36%,

02/15/2050

160‌

112‌

Rockwell

Automation

Inc

1.75%,

08/15/2031

135‌

107‌

2.80%,

08/15/2061

190‌

113‌

$

3,134‌

Media

-

0.73%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

2.25%,

01/15/2029

385‌

310‌

2.30%,

02/01/2032

145‌

107‌

2.80%,

04/01/2031

405‌

315‌

3.50%,

06/01/2041

380‌

248‌

3.70%,

04/01/2051

405‌

246‌

3.85%,

04/01/2061

145‌

84‌

3.90%,

06/01/2052

195‌

122‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

148

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Media

(continued)

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital  

(continued)

4.40%,

12/01/2061

$

95‌

$

61‌

4.80%,

03/01/2050

545‌

396‌

4.91%,

07/23/2025

900‌

882‌

5.75%,

04/01/2048

605‌

495‌

6.48%,

10/23/2045

435‌

392‌

Comcast

Corp

1.50%,

02/15/2031

165‌

128‌

2.35%,

01/15/2027

60‌

55‌

2.45%,

08/15/2052

(e)

165‌

96‌

2.65%,

02/01/2030

125‌

108‌

2.65%,

08/15/2062

165‌

93‌

2.89%,

11/01/2051

1,447‌

929‌

3.15%,

03/01/2026

30‌

29‌

3.25%,

11/01/2039

245‌

191‌

3.38%,

08/15/2025

525‌

506‌

3.40%,

07/15/2046

20‌

15‌

3.45%,

02/01/2050

485‌

352‌

3.55%,

05/01/2028

125‌

117‌

3.70%,

04/15/2024

1,050‌

1,034‌

3.75%,

04/01/2040

860‌

709‌

3.90%,

03/01/2038

150‌

129‌

4.00%,

08/15/2047

30‌

24‌

4.00%,

03/01/2048

400‌

321‌

4.00%,

11/01/2049

20‌

16‌

4.15%,

10/15/2028

500‌

480‌

4.25%,

01/15/2033

120‌

113‌

5.25%,

11/07/2025

70‌

71‌

5.50%,

11/15/2032

120‌

125‌

5.65%,

06/15/2035

20‌

21‌

7.05%,

03/15/2033

15‌

17‌

Discovery

Communications

LLC

3.63%,

05/15/2030

180‌

148‌

3.95%,

06/15/2025

250‌

238‌

3.95%,

03/20/2028

250‌

222‌

4.00%,

09/15/2055

301‌

181‌

Fox

Corp

3.05%,

04/07/2025

40‌

38‌

5.48%,

01/25/2039

200‌

182‌

5.58%,

01/25/2049

500‌

446‌

Grupo

Televisa

SAB

4.63%,

01/30/2026

500‌

485‌

NBCUniversal

Media

LLC

4.45%,

01/15/2043

10‌

9‌

Paramount

Global

4.00%,

01/15/2026

300‌

288‌

4.20%,

05/19/2032

200‌

164‌

4.38%,

03/15/2043

435‌

300‌

4.85%,

07/01/2042

200‌

148‌

6.88%,

04/30/2036

181‌

176‌

7.88%,

07/30/2030

178‌

190‌

Thomson

Reuters

Corp

5.85%,

04/15/2040

25‌

24‌

Time

Warner

Cable

Enterprises

LLC

8.38%,

07/15/2033

95‌

106‌

Time

Warner

Cable

LLC

5.50%,

09/01/2041

340‌

282‌

5.88%,

11/15/2040

20‌

17‌

6.55%,

05/01/2037

176‌

168‌

6.75%,

06/15/2039

77‌

73‌

7.30%,

07/01/2038

300‌

298‌

TWDC

Enterprises

18

Corp

3.70%,

12/01/2042

100‌

81‌

7.00%,

03/01/2032

51‌

58‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Media

(continued)

Walt

Disney

Co/The

1.75%,

01/13/2026

$

315‌

$

288‌

2.00%,

09/01/2029

245‌

205‌

2.20%,

01/13/2028

(e)

460‌

409‌

2.65%,

01/13/2031

395‌

337‌

2.75%,

09/01/2049

325‌

215‌

3.35%,

03/24/2025

120‌

116‌

3.50%,

05/13/2040

160‌

129‌

3.60%,

01/13/2051

160‌

122‌

3.70%,

03/23/2027

120‌

115‌

4.63%,

03/23/2040

240‌

224‌

4.75%,

11/15/2046

230‌

209‌

4.95%,

10/15/2045

350‌

328‌

6.20%,

12/15/2034

154‌

167‌

6.40%,

12/15/2035

98‌

107‌

$

16,630‌

Metal

Fabrication

&

Hardware

-

0.01%

Precision

Castparts

Corp

3.25%,

06/15/2025

25‌

24‌

4.38%,

06/15/2045

250‌

218‌

$

242‌

Mining

-

0.15%

Barrick

North

America

Finance

LLC

5.75%,

05/01/2043

355‌

359‌

Barrick

PD

Australia

Finance

Pty

Ltd

5.95%,

10/15/2039

90‌

92‌

BHP

Billiton

Finance

USA

Ltd

4.13%,

02/24/2042

500‌

434‌

5.00%,

09/30/2043

270‌

262‌

Newmont

Corp

2.25%,

10/01/2030

610‌

490‌

2.60%,

07/15/2032

140‌

111‌

4.88%,

03/15/2042

20‌

18‌

Rio

Tinto

Alcan

Inc

6.13%,

12/15/2033

77‌

82‌

Rio

Tinto

Finance

USA

Ltd

2.75%,

11/02/2051

175‌

116‌

Rio

Tinto

Finance

USA

PLC

4.75%,

03/22/2042

328‌

306‌

Southern

Copper

Corp

5.88%,

04/23/2045

350‌

358‌

6.75%,

04/16/2040

258‌

288‌

Teck

Resources

Ltd

3.90%,

07/15/2030

695‌

622‌

$

3,538‌

Miscellaneous

Manufacturers

-

0.17%

3M

Co

2.00%,

02/14/2025

(e)

130‌

123‌

2.38%,

08/26/2029

500‌

424‌

Eaton

Corp

3.10%,

09/15/2027

575‌

535‌

4.00%,

11/02/2032

100‌

92‌

4.15%,

03/15/2033

150‌

139‌

4.15%,

11/02/2042

50‌

43‌

Illinois

Tool

Works

Inc

2.65%,

11/15/2026

500‌

464‌

3.50%,

03/01/2024

350‌

345‌

Parker-Hannifin

Corp

4.25%,

09/15/2027

355‌

344‌

4.50%,

09/15/2029

355‌

340‌

Teledyne

Technologies

Inc

0.95%,

04/01/2024

190‌

180‌

2.25%,

04/01/2028

190‌

164‌

Trane

Technologies

Luxembourg

Finance

SA

3.80%,

03/21/2029

600‌

552‌

4.65%,

11/01/2044

300‌

253‌

$

3,998‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

149

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Oil

&

Gas

-

0.83%

BP

Capital

Markets

America

Inc

1.75%,

08/10/2030

$

460‌

$

367‌

2.72%,

01/12/2032

100‌

83‌

2.77%,

11/10/2050

425‌

271‌

2.94%,

06/04/2051

190‌

125‌

3.00%,

02/24/2050

160‌

107‌

3.00%,

03/17/2052

195‌

129‌

3.06%,

06/17/2041

385‌

285‌

3.54%,

04/06/2027

275‌

261‌

3.59%,

04/14/2027

30‌

29‌

BP

Capital

Markets

PLC

3.28%,

09/19/2027

175‌

165‌

3.72%,

11/28/2028

40‌

38‌

Canadian

Natural

Resources

Ltd

3.85%,

06/01/2027

655‌

617‌

4.95%,

06/01/2047

20‌

17‌

6.25%,

03/15/2038

250‌

247‌

Chevron

Corp

1.55%,

05/11/2025

85‌

79‌

2.00%,

05/11/2027

160‌

144‌

2.24%,

05/11/2030

160‌

137‌

2.95%,

05/16/2026

355‌

337‌

3.08%,

05/11/2050

160‌

115‌

Chevron

USA

Inc

0.69%,

08/12/2025

330‌

298‌

1.02%,

08/12/2027

165‌

142‌

2.34%,

08/12/2050

165‌

102‌

3.25%,

10/15/2029

325‌

298‌

ConocoPhillips

Co

2.40%,

03/07/2025

215‌

204‌

3.76%,

03/15/2042

402‌

333‌

3.80%,

03/15/2052

135‌

106‌

4.03%,

03/15/2062

169‌

133‌

4.30%,

11/15/2044

420‌

363‌

Devon

Energy

Corp

5.00%,

06/15/2045

10‌

9‌

5.60%,

07/15/2041

425‌

397‌

Diamondback

Energy

Inc

3.25%,

12/01/2026

155‌

144‌

EOG

Resources

Inc

4.15%,

01/15/2026

350‌

343‌

EQT

Corp

5.68%,

10/01/2025

315‌

313‌

Equinor

ASA

1.75%,

01/22/2026

160‌

146‌

2.65%,

01/15/2024

400‌

390‌

2.88%,

04/06/2025

145‌

139‌

3.00%,

04/06/2027

345‌

322‌

3.25%,

11/18/2049

450‌

327‌

3.63%,

04/06/2040

145‌

119‌

5.10%,

08/17/2040

263‌

258‌

Exxon

Mobil

Corp

2.02%,

08/16/2024

400‌

383‌

2.28%,

08/16/2026

500‌

463‌

2.44%,

08/16/2029

150‌

131‌

2.61%,

10/15/2030

305‌

266‌

2.99%,

03/19/2025

305‌

294‌

3.00%,

08/16/2039

150‌

115‌

3.10%,

08/16/2049

450‌

322‌

3.45%,

04/15/2051

405‌

305‌

4.23%,

03/19/2040

305‌

274‌

Hess

Corp

5.60%,

02/15/2041

51‌

48‌

7.13%,

03/15/2033

221‌

239‌

7.30%,

08/15/2031

25‌

27‌

HF

Sinclair

Corp

5.88%,

04/01/2026

475‌

475‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Oil

&

Gas

(continued)

Marathon

Oil

Corp

6.60%,

10/01/2037

$

223‌

$

222‌

Marathon

Petroleum

Corp

3.63%,

09/15/2024

400‌

389‌

5.00%,

09/15/2054

200‌

167‌

5.13%,

12/15/2026

300‌

298‌

Phillips

66

1.30%,

02/15/2026

90‌

81‌

2.15%,

12/15/2030

410‌

328‌

3.85%,

04/09/2025

490‌

478‌

5.88%,

05/01/2042

128‌

131‌

Pioneer

Natural

Resources

Co

1.13%,

01/15/2026

190‌

169‌

1.90%,

08/15/2030

165‌

129‌

2.15%,

01/15/2031

190‌

150‌

Shell

International

Finance

BV

2.00%,

11/07/2024

155‌

147‌

2.38%,

11/07/2029

155‌

134‌

2.50%,

09/12/2026

330‌

306‌

2.75%,

04/06/2030

400‌

351‌

2.88%,

11/26/2041

180‌

131‌

3.13%,

11/07/2049

155‌

109‌

3.25%,

04/06/2050

400‌

287‌

3.63%,

08/21/2042

100‌

80‌

4.00%,

05/10/2046

245‌

200‌

4.38%,

05/11/2045

490‌

428‌

4.55%,

08/12/2043

35‌

32‌

5.50%,

03/25/2040

25‌

25‌

6.38%,

12/15/2038

43‌

47‌

Suncor

Energy

Inc

3.75%,

03/04/2051

190‌

136‌

4.00%,

11/15/2047

90‌

68‌

6.50%,

06/15/2038

428‌

439‌

6.80%,

05/15/2038

12‌

13‌

6.85%,

06/01/2039

5‌

5‌

TotalEnergies

Capital

International

SA

2.43%,

01/10/2025

85‌

81‌

2.83%,

01/10/2030

85‌

75‌

2.99%,

06/29/2041

170‌

127‌

3.13%,

05/29/2050

510‌

360‌

3.39%,

06/29/2060

370‌

258‌

3.46%,

07/12/2049

85‌

64‌

Valero

Energy

Corp

2.80%,

12/01/2031

395‌

322‌

4.00%,

06/01/2052

195‌

147‌

6.63%,

06/15/2037

234‌

249‌

7.50%,

04/15/2032

15‌

17‌

$

18,961‌

Oil

&

Gas

Services

-

0.06%

Baker

Hughes

Holdings

LLC

/

Baker

Hughes

Co-Obligor

Inc

2.06%,

12/15/2026

200‌

179‌

3.14%,

11/07/2029

155‌

137‌

3.34%,

12/15/2027

165‌

152‌

4.08%,

12/15/2047

170‌

133‌

Halliburton

Co

3.80%,

11/15/2025

24‌

23‌

4.50%,

11/15/2041

51‌

43‌

4.85%,

11/15/2035

275‌

254‌

7.45%,

09/15/2039

10‌

11‌

NOV

Inc

3.60%,

12/01/2029

155‌

136‌

3.95%,

12/01/2042

200‌

140‌

Schlumberger

Investment

SA

2.65%,

06/26/2030

165‌

142‌

$

1,350‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

150

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Packaging

&

Containers

-

0.04%

Amcor

Flexibles

North

America

Inc

4.00%,

05/17/2025

$

365‌

$

355‌

Packaging

Corp

of

America

3.00%,

12/15/2029

310‌

265‌

3.05%,

10/01/2051

165‌

106‌

4.05%,

12/15/2049

155‌

118‌

WRKCo

Inc

3.00%,

06/15/2033

80‌

64‌

$

908‌

Pharmaceuticals

-

1.45%

AbbVie

Inc

2.60%,

11/21/2024

465‌

445‌

2.95%,

11/21/2026

310‌

288‌

3.20%,

05/14/2026

335‌

317‌

3.20%,

11/21/2029

775‌

699‌

3.80%,

03/15/2025

330‌

322‌

3.85%,

06/15/2024

245‌

241‌

4.05%,

11/21/2039

385‌

330‌

4.25%,

11/14/2028

220‌

212‌

4.25%,

11/21/2049

620‌

515‌

4.30%,

05/14/2036

170‌

153‌

4.40%,

11/06/2042

200‌

173‌

4.45%,

05/14/2046

280‌

241‌

4.50%,

05/14/2035

300‌

278‌

4.63%,

10/01/2042

100‌

89‌

4.70%,

05/14/2045

330‌

293‌

4.75%,

03/15/2045

235‌

211‌

4.88%,

11/14/2048

210‌

191‌

AmerisourceBergen

Corp

3.40%,

05/15/2024

250‌

244‌

Astrazeneca

Finance

LLC

0.70%,

05/28/2024

295‌

278‌

1.75%,

05/28/2028

195‌

167‌

2.25%,

05/28/2031

190‌

158‌

AstraZeneca

PLC

0.70%,

04/08/2026

125‌

110‌

1.38%,

08/06/2030

165‌

130‌

2.13%,

08/06/2050

85‌

50‌

3.00%,

05/28/2051

155‌

109‌

3.38%,

11/16/2025

605‌

584‌

4.00%,

09/18/2042

125‌

108‌

4.38%,

11/16/2045

185‌

166‌

4.38%,

08/17/2048

90‌

80‌

6.45%,

09/15/2037

164‌

185‌

Becton

Dickinson

and

Co

1.96%,

02/11/2031

190‌

150‌

2.82%,

05/20/2030

160‌

137‌

3.36%,

06/06/2024

10‌

10‌

3.70%,

06/06/2027

900‌

850‌

3.73%,

12/15/2024

54‌

53‌

4.67%,

06/06/2047

35‌

31‌

4.69%,

12/15/2044

196‌

175‌

Bristol-Myers

Squibb

Co

0.75%,

11/13/2025

180‌

162‌

1.13%,

11/13/2027

315‌

269‌

1.45%,

11/13/2030

180‌

142‌

2.55%,

11/13/2050

180‌

113‌

2.90%,

07/26/2024

389‌

378‌

2.95%,

03/15/2032

500‌

435‌

3.25%,

08/01/2042

300‌

229‌

3.40%,

07/26/2029

167‌

155‌

3.55%,

03/15/2042

500‌

406‌

3.70%,

03/15/2052

600‌

467‌

3.90%,

02/20/2028

185‌

178‌

4.13%,

06/15/2039

230‌

205‌

4.25%,

10/26/2049

430‌

370‌

4.35%,

11/15/2047

150‌

132‌

4.55%,

02/20/2048

144‌

129‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pharmaceuticals

(continued)

Cardinal

Health

Inc

3.08%,

06/15/2024

$

50‌

$

49‌

3.41%,

06/15/2027

200‌

187‌

4.60%,

03/15/2043

100‌

82‌

Cigna

Corp

0.61%,

03/15/2024

90‌

85‌

1.25%,

03/15/2026

370‌

330‌

2.40%,

03/15/2030

860‌

720‌

3.20%,

03/15/2040

160‌

121‌

3.40%,

03/15/2051

185‌

131‌

4.13%,

11/15/2025

270‌

264‌

4.38%,

10/15/2028

750‌

723‌

4.80%,

08/15/2038

400‌

371‌

4.80%,

07/15/2046

25‌

22‌

4.90%,

12/15/2048

360‌

324‌

6.13%,

11/15/2041

16‌

17‌

CVS

Health

Corp

1.30%,

08/21/2027

165‌

140‌

1.75%,

08/21/2030

165‌

130‌

1.88%,

02/28/2031

185‌

145‌

2.63%,

08/15/2024

420‌

403‌

2.70%,

08/21/2040

750‌

518‌

3.00%,

08/15/2026

375‌

350‌

3.25%,

08/15/2029

170‌

152‌

4.30%,

03/25/2028

219‌

212‌

4.78%,

03/25/2038

485‌

442‌

5.05%,

03/25/2048

980‌

880‌

5.13%,

07/20/2045

370‌

337‌

5.30%,

12/05/2043

25‌

23‌

Eli

Lilly

&

Co

3.95%,

03/15/2049

400‌

355‌

GlaxoSmithKline

Capital

Inc

3.63%,

05/15/2025

600‌

586‌

3.88%,

05/15/2028

545‌

523‌

5.38%,

04/15/2034

500‌

513‌

Johnson

&

Johnson

0.55%,

09/01/2025

370‌

334‌

0.95%,

09/01/2027

370‌

319‌

2.10%,

09/01/2040

370‌

255‌

2.45%,

03/01/2026

30‌

28‌

3.50%,

01/15/2048

90‌

73‌

3.63%,

03/03/2037

20‌

18‌

3.70%,

03/01/2046

225‌

189‌

3.75%,

03/03/2047

30‌

25‌

4.95%,

05/15/2033

201‌

209‌

McKesson

Corp

0.90%,

12/03/2025

185‌

164‌

Mead

Johnson

Nutrition

Co

4.60%,

06/01/2044

250‌

223‌

Merck

&

Co

Inc

0.75%,

02/24/2026

80‌

71‌

1.45%,

06/24/2030

365‌

291‌

1.70%,

06/10/2027

340‌

301‌

1.90%,

12/10/2028

190‌

163‌

2.15%,

12/10/2031

380‌

310‌

2.35%,

06/24/2040

285‌

198‌

2.75%,

02/10/2025

385‌

369‌

2.75%,

12/10/2051

235‌

157‌

3.60%,

09/15/2042

100‌

82‌

3.70%,

02/10/2045

10‌

8‌

3.90%,

03/07/2039

115‌

101‌

4.00%,

03/07/2049

170‌

145‌

4.15%,

05/18/2043

200‌

177‌

Novartis

Capital

Corp

1.75%,

02/14/2025

325‌

306‌

2.00%,

02/14/2027

325‌

296‌

2.20%,

08/14/2030

160‌

136‌

2.75%,

08/14/2050

160‌

111‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

151

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pharmaceuticals

(continued)

Novartis

Capital

Corp  

(continued)

3.00%,

11/20/2025

$

500‌

$

479‌

4.40%,

05/06/2044

350‌

325‌

Pfizer

Inc

0.80%,

05/28/2025

445‌

408‌

1.70%,

05/28/2030

195‌

160‌

1.75%,

08/18/2031

155‌

124‌

2.55%,

05/28/2040

450‌

325‌

2.63%,

04/01/2030

160‌

141‌

2.70%,

05/28/2050

190‌

128‌

3.45%,

03/15/2029

210‌

198‌

4.00%,

03/15/2049

140‌

121‌

4.40%,

05/15/2044

30‌

28‌

5.60%,

09/15/2040

380‌

398‌

7.20%,

03/15/2039

176‌

213‌

Sanofi

3.63%,

06/19/2028

400‌

382‌

Shire

Acquisitions

Investments

Ireland

DAC

3.20%,

09/23/2026

525‌

492‌

Takeda

Pharmaceutical

Co

Ltd

2.05%,

03/31/2030

405‌

331‌

3.18%,

07/09/2050

405‌

273‌

Utah

Acquisition

Sub

Inc

3.95%,

06/15/2026

595‌

556‌

5.25%,

06/15/2046

170‌

129‌

Viatris

Inc

2.30%,

06/22/2027

120‌

103‌

2.70%,

06/22/2030

160‌

125‌

3.85%,

06/22/2040

120‌

80‌

4.00%,

06/22/2050

160‌

99‌

Wyeth

LLC

5.95%,

04/01/2037

91‌

98‌

6.50%,

02/01/2034

144‌

161‌

Zoetis

Inc

2.00%,

05/15/2030

350‌

284‌

3.00%,

05/15/2050

175‌

118‌

3.95%,

09/12/2047

5‌

4‌

5.40%,

11/14/2025

110‌

112‌

$

33,132‌

Pipelines

-

0.81%

Cheniere

Corpus

Christi

Holdings

LLC

3.70%,

11/15/2029

310‌

280‌

Eastern

Gas

Transmission

&

Storage

Inc

4.80%,

11/01/2043

300‌

260‌

Enbridge

Energy

Partners

LP

7.38%,

10/15/2045

100‌

112‌

Enbridge

Inc

1.60%,

10/04/2026

60‌

53‌

2.50%,

01/15/2025

155‌

147‌

2.50%,

08/01/2033

390‌

300‌

3.13%,

11/15/2029

155‌

135‌

3.40%,

08/01/2051

390‌

265‌

5.50%,

12/01/2046

30‌

28‌

Energy

Transfer

LP

2.90%,

05/15/2025

315‌

297‌

3.75%,

05/15/2030

160‌

141‌

4.75%,

01/15/2026

50‌

49‌

4.95%,

01/15/2043

200‌

161‌

5.00%,

05/15/2044

350‌

285‌

5.15%,

03/15/2045

400‌

331‌

5.25%,

04/15/2029

400‌

387‌

5.30%,

04/15/2047

15‌

12‌

5.35%,

05/15/2045

15‌

13‌

5.75%,

02/15/2033

155‌

152‌

6.13%,

12/15/2045

525‌

486‌

6.25%,

04/15/2049

500‌

465‌

6.50%,

02/01/2042

402‌

397‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pipelines

(continued)

Enterprise

Products

Operating

LLC

2.80%,

01/31/2030

$

120‌

$

102‌

3.30%,

02/15/2053

65‌

43‌

3.70%,

02/15/2026

375‌

361‌

3.70%,

01/31/2051

250‌

180‌

3.75%,

02/15/2025

500‌

486‌

3.90%,

02/15/2024

250‌

246‌

4.25%,

02/15/2048

155‌

124‌

4.85%,

08/15/2042

300‌

265‌

4.85%,

03/15/2044

430‌

379‌

4.90%,

05/15/2046

400‌

348‌

6.13%,

10/15/2039

123‌

126‌

6.45%,

09/01/2040

177‌

185‌

6.88%,

03/01/2033

15‌

16‌

Kinder

Morgan

Energy

Partners

LP

4.70%,

11/01/2042

200‌

165‌

5.00%,

03/01/2043

100‌

85‌

5.40%,

09/01/2044

400‌

359‌

6.38%,

03/01/2041

128‌

127‌

6.50%,

09/01/2039

112‌

113‌

6.95%,

01/15/2038

112‌

119‌

7.40%,

03/15/2031

177‌

191‌

Kinder

Morgan

Inc

1.75%,

11/15/2026

190‌

168‌

2.00%,

02/15/2031

310‌

240‌

3.25%,

08/01/2050

310‌

200‌

3.60%,

02/15/2051

155‌

107‌

4.30%,

06/01/2025

55‌

54‌

5.05%,

02/15/2046

15‌

13‌

5.55%,

06/01/2045

50‌

46‌

MPLX

LP

1.75%,

03/01/2026

165‌

147‌

4.13%,

03/01/2027

425‌

401‌

4.25%,

12/01/2027

400‌

378‌

4.50%,

04/15/2038

220‌

185‌

4.70%,

04/15/2048

185‌

146‌

4.88%,

12/01/2024

30‌

30‌

4.90%,

04/15/2058

60‌

47‌

5.20%,

03/01/2047

330‌

280‌

5.20%,

12/01/2047

200‌

170‌

5.50%,

02/15/2049

170‌

149‌

ONEOK

Inc

2.20%,

09/15/2025

160‌

147‌

2.75%,

09/01/2024

175‌

168‌

3.40%,

09/01/2029

100‌

86‌

4.45%,

09/01/2049

500‌

372‌

Plains

All

American

Pipeline

LP

/

PAA

Finance

Corp

4.30%,

01/31/2043

200‌

145‌

4.50%,

12/15/2026

300‌

288‌

4.65%,

10/15/2025

15‌

15‌

Sabine

Pass

Liquefaction

LLC

5.00%,

03/15/2027

360‌

353‌

5.63%,

03/01/2025

390‌

391‌

5.75%,

05/15/2024

300‌

300‌

5.88%,

06/30/2026

345‌

349‌

Spectra

Energy

Partners

LP

5.95%,

09/25/2043

200‌

194‌

Targa

Resources

Corp

5.20%,

07/01/2027

355‌

348‌

Texas

Eastern

Transmission

LP

7.00%,

07/15/2032

100‌

109‌

TransCanada

PipeLines

Ltd

2.50%,

10/12/2031

195‌

155‌

4.25%,

05/15/2028

300‌

284‌

4.75%,

05/15/2038

300‌

267‌

4.88%,

05/15/2048

420‌

367‌

5.60%,

03/31/2034

300‌

294‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

152

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pipelines

(continued)

TransCanada

PipeLines

Ltd  

(continued)

6.10%,

06/01/2040

$

25‌

$

25‌

7.25%,

08/15/2038

51‌

56‌

Williams

Cos

Inc/The

2.60%,

03/15/2031

1,090‌

882‌

3.50%,

10/15/2051

195‌

133‌

3.75%,

06/15/2027

400‌

377‌

3.90%,

01/15/2025

350‌

341‌

5.10%,

09/15/2045

180‌

157‌

5.30%,

08/15/2052

175‌

156‌

6.30%,

04/15/2040

343‌

350‌

$

18,646‌

Private

Equity

-

0.01%

Brookfield

Corp

4.00%,

01/15/2025

300‌

293‌

Regional

Authority

-

0.28%

Province

of

Alberta

Canada

1.00%,

05/20/2025

555‌

511‌

1.30%,

07/22/2030

300‌

240‌

3.30%,

03/15/2028

570‌

539‌

Province

of

British

Columbia

Canada

0.90%,

07/20/2026

585‌

518‌

1.30%,

01/29/2031

(e)

185‌

147‌

6.50%,

01/15/2026

18‌

19‌

Province

of

Manitoba

Canada

1.50%,

10/25/2028

190‌

161‌

3.05%,

05/14/2024

500‌

488‌

Province

of

Ontario

Canada

0.63%,

01/21/2026

(e)

495‌

440‌

1.05%,

04/14/2026

(e)

380‌

340‌

1.13%,

10/07/2030

625‌

490‌

2.13%,

01/21/2032

420‌

349‌

3.10%,

05/19/2027

310‌

294‌

3.20%,

05/16/2024

250‌

244‌

Province

of

Quebec

Canada

0.60%,

07/23/2025

650‌

589‌

1.35%,

05/28/2030

760‌

616‌

1.50%,

02/11/2025

295‌

277‌

7.50%,

09/15/2029

64‌

75‌

$

6,337‌

REITs

-

0.95%

Alexandria

Real

Estate

Equities

Inc

1.88%,

02/01/2033

250‌

186‌

2.75%,

12/15/2029

80‌

68‌

2.95%,

03/15/2034

195‌

158‌

3.00%,

05/18/2051

190‌

120‌

3.38%,

08/15/2031

115‌

100‌

4.00%,

02/01/2050

85‌

64‌

4.90%,

12/15/2030

80‌

78‌

American

Tower

Corp

0.60%,

01/15/2024

360‌

343‌

1.30%,

09/15/2025

80‌

72‌

1.60%,

04/15/2026

190‌

169‌

1.88%,

10/15/2030

165‌

127‌

2.90%,

01/15/2030

160‌

136‌

2.95%,

01/15/2051

180‌

111‌

3.38%,

10/15/2026

500‌

467‌

3.65%,

03/15/2027

200‌

187‌

3.70%,

10/15/2049

165‌

117‌

AvalonBay

Communities

Inc

1.90%,

12/01/2028

200‌

167‌

2.05%,

01/15/2032

195‌

153‌

2.30%,

03/01/2030

160‌

133‌

5.00%,

02/15/2033

155‌

153‌

Boston

Properties

LP

2.55%,

04/01/2032

155‌

118‌

2.75%,

10/01/2026

550‌

495‌

2.90%,

03/15/2030

415‌

339‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

REITs

(continued)

Brixmor

Operating

Partnership

LP

3.85%,

02/01/2025

$

300‌

$

288‌

Corporate

Office

Properties

LP

2.75%,

04/15/2031

195‌

146‌

Crown

Castle

Inc

1.05%,

07/15/2026

380‌

328‌

1.35%,

07/15/2025

195‌

177‌

2.50%,

07/15/2031

190‌

153‌

2.90%,

04/01/2041

190‌

130‌

3.10%,

11/15/2029

150‌

131‌

3.20%,

09/01/2024

250‌

241‌

3.25%,

01/15/2051

370‌

241‌

3.30%,

07/01/2030

155‌

136‌

4.00%,

11/15/2049

110‌

83‌

CubeSmart

LP

2.00%,

02/15/2031

125‌

94‌

2.25%,

12/15/2028

200‌

165‌

Digital

Realty

Trust

LP

4.45%,

07/15/2028

250‌

237‌

5.55%,

01/15/2028

120‌

121‌

Equinix

Inc

1.00%,

09/15/2025

165‌

148‌

1.25%,

07/15/2025

160‌

145‌

1.80%,

07/15/2027

160‌

137‌

2.50%,

05/15/2031

195‌

157‌

2.63%,

11/18/2024

155‌

148‌

3.20%,

11/18/2029

260‌

226‌

3.40%,

02/15/2052

195‌

133‌

ERP

Operating

LP

1.85%,

08/01/2031

385‌

299‌

2.50%,

02/15/2030

125‌

104‌

Essex

Portfolio

LP

1.70%,

03/01/2028

190‌

158‌

3.00%,

01/15/2030

170‌

144‌

4.00%,

03/01/2029

300‌

273‌

4.50%,

03/15/2048

300‌

237‌

Federal

Realty

Investment

Trust

1.25%,

02/15/2026

170‌

150‌

4.50%,

12/01/2044

250‌

196‌

GLP

Capital

LP

/

GLP

Financing

II

Inc

4.00%,

01/15/2030

170‌

149‌

5.38%,

04/15/2026

300‌

294‌

Healthcare

Realty

Holdings

LP

2.00%,

03/15/2031

170‌

129‌

Healthpeak

Properties

Inc

2.13%,

12/01/2028

165‌

138‌

3.00%,

01/15/2030

150‌

129‌

3.40%,

02/01/2025

19‌

18‌

6.75%,

02/01/2041

300‌

308‌

Kilroy

Realty

LP

2.50%,

11/15/2032

165‌

117‌

KRC

Interim

Corp

2.25%,

12/01/2031

195‌

150‌

2.70%,

10/01/2030

165‌

135‌

3.70%,

10/01/2049

330‌

225‌

4.60%,

02/01/2033

175‌

160‌

Life

Storage

LP

2.20%,

10/15/2030

85‌

66‌

2.40%,

10/15/2031

195‌

150‌

Mid-America

Apartments

LP

1.70%,

02/15/2031

125‌

97‌

4.00%,

11/15/2025

500‌

486‌

National

Retail

Properties

Inc

4.80%,

10/15/2048

200‌

166‌

Omega

Healthcare

Investors

Inc

4.50%,

01/15/2025

300‌

292‌

4.95%,

04/01/2024

750‌

739‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

153

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

REITs

(continued)

Prologis

LP

1.25%,

10/15/2030

$

165‌

$

125‌

1.75%,

07/01/2030

160‌

126‌

2.13%,

04/15/2027

145‌

130‌

2.25%,

04/15/2030

140‌

117‌

2.25%,

01/15/2032

195‌

155‌

2.88%,

11/15/2029

75‌

65‌

3.00%,

04/15/2050

110‌

74‌

3.88%,

09/15/2028

250‌

236‌

4.00%,

09/15/2028

400‌

380‌

4.63%,

01/15/2033

80‌

77‌

Public

Storage

0.88%,

02/15/2026

145‌

128‌

1.85%,

05/01/2028

380‌

326‌

2.25%,

11/09/2031

200‌

160‌

Realty

Income

Corp

0.75%,

03/15/2026

430‌

374‌

2.20%,

06/15/2028

180‌

154‌

3.10%,

12/15/2029

375‌

327‌

3.25%,

01/15/2031

165‌

143‌

Simon

Property

Group

LP

1.75%,

02/01/2028

190‌

162‌

2.00%,

09/13/2024

915‌

869‌

2.45%,

09/13/2029

140‌

117‌

2.65%,

02/01/2032

200‌

160‌

3.25%,

11/30/2026

500‌

468‌

3.25%,

09/13/2049

140‌

93‌

3.50%,

09/01/2025

165‌

158‌

4.25%,

11/30/2046

130‌

104‌

6.75%,

02/01/2040

25‌

27‌

Spirit

Realty

LP

2.10%,

03/15/2028

190‌

155‌

UDR

Inc

2.10%,

08/01/2032

565‌

415‌

3.20%,

01/15/2030

165‌

143‌

Ventas

Realty

LP

3.00%,

01/15/2030

200‌

168‌

3.50%,

04/15/2024

300‌

292‌

5.70%,

09/30/2043

300‌

273‌

VICI

Properties

LP

4.38%,

05/15/2025

585‌

567‌

Welltower

Inc

2.75%,

01/15/2032

195‌

152‌

3.63%,

03/15/2024

600‌

587‌

4.13%,

03/15/2029

300‌

275‌

Weyerhaeuser

Co

7.38%,

03/15/2032

85‌

94‌

WP

Carey

Inc

2.40%,

02/01/2031

85‌

68‌

$

21,779‌

Retail

-

0.67%

AutoZone

Inc

1.65%,

01/15/2031

165‌

128‌

3.75%,

06/01/2027

250‌

238‌

Costco

Wholesale

Corp

1.38%,

06/20/2027

155‌

136‌

1.60%,

04/20/2030

155‌

127‌

1.75%,

04/20/2032

155‌

122‌

2.75%,

05/18/2024

50‌

49‌

3.00%,

05/18/2027

150‌

141‌

Dollar

General

Corp

4.15%,

11/01/2025

500‌

489‌

Dollar

Tree

Inc

4.20%,

05/15/2028

185‌

177‌

Home

Depot

Inc/The

0.90%,

03/15/2028

190‌

157‌

1.88%,

09/15/2031

195‌

156‌

2.13%,

09/15/2026

250‌

229‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Retail

(continued)

Home

Depot

Inc/The  

(continued)

2.38%,

03/15/2051

$

190‌

$

113‌

2.70%,

04/15/2025

195‌

187‌

2.75%,

09/15/2051

195‌

127‌

2.88%,

04/15/2027

195‌

182‌

2.95%,

06/15/2029

435‌

393‌

3.50%,

09/15/2056

305‌

227‌

3.90%,

06/15/2047

30‌

25‌

4.00%,

09/15/2025

325‌

321‌

4.20%,

04/01/2043

520‌

455‌

4.25%,

04/01/2046

340‌

294‌

4.40%,

03/15/2045

320‌

286‌

4.95%,

09/15/2052

160‌

154‌

5.95%,

04/01/2041

351‌

382‌

Lowe's

Cos

Inc

1.30%,

04/15/2028

165‌

137‌

1.70%,

10/15/2030

165‌

129‌

3.00%,

10/15/2050

50‌

32‌

3.10%,

05/03/2027

250‌

233‌

3.65%,

04/05/2029

250‌

231‌

3.70%,

04/15/2046

40‌

30‌

3.75%,

04/01/2032

195‌

173‌

4.00%,

04/15/2025

160‌

157‌

4.05%,

05/03/2047

30‌

23‌

4.25%,

04/01/2052

195‌

155‌

4.38%,

09/15/2045

500‌

411‌

4.40%,

09/08/2025

160‌

158‌

5.00%,

04/15/2033

(e)

160‌

156‌

5.00%,

04/15/2040

160‌

148‌

5.63%,

04/15/2053

160‌

153‌

McDonald's

Corp

1.45%,

09/01/2025

160‌

147‌

2.13%,

03/01/2030

160‌

134‌

2.63%,

09/01/2029

415‌

364‌

3.38%,

05/26/2025

500‌

484‌

3.50%,

07/01/2027

325‌

308‌

3.63%,

09/01/2049

115‌

86‌

3.70%,

02/15/2042

128‌

102‌

4.70%,

12/09/2035

25‌

24‌

4.88%,

07/15/2040

9‌

8‌

4.88%,

12/09/2045

250‌

231‌

5.15%,

09/09/2052

325‌

312‌

6.30%,

10/15/2037

262‌

285‌

O'Reilly

Automotive

Inc

1.75%,

03/15/2031

(e)

85‌

66‌

4.35%,

06/01/2028

300‌

291‌

Starbucks

Corp

2.00%,

03/12/2027

160‌

143‌

3.00%,

02/14/2032

(e)

135‌

115‌

3.55%,

08/15/2029

500‌

461‌

4.45%,

08/15/2049

300‌

255‌

Target

Corp

1.95%,

01/15/2027

(e)

150‌

136‌

2.35%,

02/15/2030

320‌

272‌

2.50%,

04/15/2026

500‌

468‌

2.95%,

01/15/2052

175‌

120‌

4.50%,

09/15/2032

245‌

238‌

TJX

Cos

Inc/The

1.60%,

05/15/2031

130‌

101‌

Walgreens

Boots

Alliance

Inc

3.45%,

06/01/2026

148‌

141‌

Walmart

Inc

1.05%,

09/17/2026

185‌

164‌

1.50%,

09/22/2028

185‌

158‌

1.80%,

09/22/2031

195‌

159‌

2.50%,

09/22/2041

195‌

142‌

2.65%,

09/22/2051

(e)

185‌

125‌

2.95%,

09/24/2049

245‌

178‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

154

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Retail

(continued)

Walmart

Inc  

(continued)

3.90%,

09/09/2025

$

160‌

$

158‌

3.95%,

06/28/2038

185‌

169‌

4.15%,

09/09/2032

660‌

643‌

4.50%,

09/09/2052

660‌

628‌

$

15,437‌

Semiconductors

-

0.64%

Analog

Devices

Inc

2.10%,

10/01/2031

135‌

109‌

2.80%,

10/01/2041

195‌

143‌

Applied

Materials

Inc

1.75%,

06/01/2030

160‌

130‌

3.30%,

04/01/2027

35‌

33‌

3.90%,

10/01/2025

500‌

489‌

4.35%,

04/01/2047

40‌

36‌

5.10%,

10/01/2035

250‌

253‌

Broadcom

Corp

/

Broadcom

Cayman

Finance

Ltd

3.88%,

01/15/2027

910‌

861‌

Broadcom

Inc

1.95%,

02/15/2028

(h)

150‌

127‌

2.60%,

02/15/2033

(h)

405‌

304‌

3.14%,

11/15/2035

(h)

640‌

471‌

3.19%,

11/15/2036

(h)

14‌

10‌

3.42%,

04/15/2033

(h)

460‌

369‌

3.47%,

04/15/2034

(h)

350‌

279‌

3.50%,

02/15/2041

(h)

200‌

142‌

3.75%,

02/15/2051

(h)

50‌

35‌

4.15%,

11/15/2030

271‌

243‌

4.30%,

11/15/2032

185‌

163‌

4.75%,

04/15/2029

730‌

695‌

Intel

Corp

2.00%,

08/12/2031

190‌

150‌

2.45%,

11/15/2029

310‌

266‌

3.05%,

08/12/2051

190‌

123‌

3.15%,

05/11/2027

540‌

509‌

3.20%,

08/12/2061

190‌

119‌

3.25%,

11/15/2049

315‌

214‌

3.40%,

03/25/2025

(e)

160‌

156‌

3.73%,

12/08/2047

240‌

180‌

3.75%,

03/25/2027

160‌

154‌

3.75%,

08/05/2027

175‌

168‌

4.00%,

08/05/2029

705‌

671‌

4.00%,

12/15/2032

200‌

185‌

4.15%,

08/05/2032

(e)

175‌

164‌

4.25%,

12/15/2042

200‌

170‌

4.60%,

03/25/2040

160‌

146‌

4.80%,

10/01/2041

77‌

71‌

4.90%,

07/29/2045

25‌

23‌

KLA

Corp

4.65%,

11/01/2024

145‌

145‌

4.95%,

07/15/2052

355‌

330‌

Lam

Research

Corp

1.90%,

06/15/2030

155‌

126‌

2.88%,

06/15/2050

235‌

157‌

Marvell

Technology

Inc

2.45%,

04/15/2028

380‌

322‌

4.88%,

06/22/2028

300‌

286‌

Micron

Technology

Inc

2.70%,

04/15/2032

290‌

217‌

4.19%,

02/15/2027

115‌

109‌

4.66%,

02/15/2030

115‌

104‌

NVIDIA

Corp

0.58%,

06/14/2024

385‌

363‌

1.55%,

06/15/2028

190‌

162‌

2.00%,

06/15/2031

385‌

308‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Semiconductors

(continued)

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA

Inc

2.50%,

05/11/2031

$

385‌

$

307‌

3.13%,

02/15/2042

195‌

132‌

3.15%,

05/01/2027

80‌

73‌

3.25%,

05/11/2041

195‌

136‌

4.40%,

06/01/2027

220‌

211‌

QUALCOMM

Inc

1.30%,

05/20/2028

411‌

348‌

1.65%,

05/20/2032

340‌

262‌

3.25%,

05/20/2027

320‌

304‌

4.65%,

05/20/2035

115‌

112‌

4.80%,

05/20/2045

425‌

398‌

6.00%,

05/20/2053

155‌

165‌

Texas

Instruments

Inc

1.13%,

09/15/2026

195‌

172‌

1.38%,

03/12/2025

160‌

149‌

1.75%,

05/04/2030

245‌

201‌

1.90%,

09/15/2031

195‌

158‌

4.15%,

05/15/2048

205‌

181‌

TSMC

Arizona

Corp

3.88%,

04/22/2027

200‌

192‌

4.25%,

04/22/2032

(e)

200‌

193‌

$

14,684‌

Software

-

0.60%

Activision

Blizzard

Inc

1.35%,

09/15/2030

85‌

66‌

2.50%,

09/15/2050

790‌

485‌

Adobe

Inc

1.90%,

02/01/2025

315‌

298‌

2.30%,

02/01/2030

160‌

136‌

Electronic

Arts

Inc

1.85%,

02/15/2031

190‌

149‌

Fidelity

National

Information

Services

Inc

0.60%,

03/01/2024

90‌

85‌

1.65%,

03/01/2028

180‌

149‌

3.10%,

03/01/2041

90‌

62‌

4.50%,

07/15/2025

130‌

128‌

5.10%,

07/15/2032

130‌

125‌

Fiserv

Inc

3.50%,

07/01/2029

310‌

279‌

3.85%,

06/01/2025

300‌

291‌

Microsoft

Corp

2.40%,

08/08/2026

55‌

51‌

2.53%,

06/01/2050

792‌

521‌

2.68%,

06/01/2060

1,209‌

767‌

3.13%,

11/03/2025

700‌

676‌

3.30%,

02/06/2027

200‌

193‌

3.45%,

08/08/2036

358‌

317‌

Oracle

Corp

2.30%,

03/25/2028

385‌

334‌

2.50%,

04/01/2025

150‌

142‌

2.65%,

07/15/2026

700‌

643‌

2.80%,

04/01/2027

850‌

774‌

2.88%,

03/25/2031

385‌

319‌

2.95%,

04/01/2030

150‌

128‌

3.60%,

04/01/2040

150‌

110‌

3.60%,

04/01/2050

150‌

101‌

3.65%,

03/25/2041

385‌

284‌

3.80%,

11/15/2037

250‌

198‌

3.90%,

05/15/2035

600‌

502‌

3.95%,

03/25/2051

385‌

274‌

4.00%,

07/15/2046

780‌

568‌

4.10%,

03/25/2061

190‌

132‌

4.30%,

07/08/2034

1,015‌

892‌

4.38%,

05/15/2055

610‌

461‌

5.80%,

11/10/2025

235‌

240‌

6.15%,

11/09/2029

55‌

57‌

6.25%,

11/09/2032

115‌

120‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

155

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Software

(continued)

Oracle

Corp  

(continued)

6.90%,

11/09/2052

$

115‌

$

123‌

Roper

Technologies

Inc

1.00%,

09/15/2025

85‌

76‌

1.40%,

09/15/2027

165‌

140‌

2.35%,

09/15/2024

110‌

105‌

2.95%,

09/15/2029

95‌

83‌

Salesforce

Inc

1.95%,

07/15/2031

190‌

152‌

2.70%,

07/15/2041

385‌

275‌

2.90%,

07/15/2051

385‌

252‌

ServiceNow

Inc

1.40%,

09/01/2030

165‌

126‌

Take-Two

Interactive

Software

Inc

3.55%,

04/14/2025

340‌

327‌

VMware

Inc

1.40%,

08/15/2026

570‌

497‌

1.80%,

08/15/2028

285‌

233‌

2.20%,

08/15/2031

385‌

292‌

$

13,738‌

Sovereign

-

1.48%

Canada

Government

International

Bond

0.75%,

05/19/2026

390‌

347‌

1.63%,

01/22/2025

865‌

818‌

2.88%,

04/28/2025

430‌

416‌

Chile

Government

International

Bond

2.45%,

01/31/2031

(e)

535‌

444‌

2.55%,

01/27/2032

(e)

475‌

389‌

2.75%,

01/31/2027

200‌

184‌

3.10%,

05/07/2041

500‌

359‌

3.13%,

03/27/2025

250‌

243‌

3.50%,

04/15/2053

200‌

142‌

3.86%,

06/21/2047

300‌

234‌

4.00%,

01/31/2052

200‌

154‌

Export

Development

Canada

3.38%,

08/26/2025

250‌

243‌

Export-Import

Bank

of

Korea

0.38%,

02/09/2024

200‌

190‌

1.25%,

01/18/2025

200‌

185‌

1.38%,

02/09/2031

200‌

152‌

2.13%,

01/18/2032

200‌

159‌

3.25%,

11/10/2025

500‌

477‌

3.25%,

08/12/2026

500‌

475‌

4.25%,

09/15/2027

200‌

196‌

4.50%,

09/15/2032

200‌

195‌

Indonesia

Government

International

Bond

2.15%,

07/28/2031

400‌

331‌

2.85%,

02/14/2030

800‌

710‌

3.05%,

03/12/2051

(e)

400‌

287‌

3.50%,

01/11/2028

200‌

190‌

3.70%,

10/30/2049

200‌

154‌

4.15%,

09/20/2027

200‌

196‌

4.20%,

10/15/2050

500‌

413‌

4.65%,

09/20/2032

335‌

328‌

4.75%,

02/11/2029

200‌

201‌

Israel

Government

AID

Bond

5.50%,

04/26/2024

125‌

126‌

5.50%,

09/18/2033

12‌

13‌

Israel

Government

International

Bond

3.88%,

07/03/2050

400‌

336‌

4.50%,

01/30/2043

400‌

373‌

Japan

Bank

for

International

Cooperation

0.50%,

04/15/2024

200‌

189‌

1.25%,

01/21/2031

400‌

311‌

1.88%,

04/15/2031

200‌

163‌

2.00%,

10/17/2029

200‌

170‌

2.13%,

02/16/2029

(e)

400‌

347‌

2.25%,

11/04/2026

400‌

365‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Sovereign

(continued)

Japan

Bank

for

International

Cooperation  

(continued)

2.38%,

04/20/2026

$

300‌

$

278‌

2.88%,

04/14/2025

400‌

384‌

3.00%,

05/29/2024

1,000‌

973‌

3.88%,

09/16/2025

300‌

293‌

Korea

International

Bond

1.00%,

09/16/2030

200‌

157‌

3.88%,

09/20/2048

500‌

433‌

Mexico

Government

International

Bond

2.66%,

05/24/2031

400‌

323‌

3.25%,

04/16/2030

(e)

200‌

174‌

3.50%,

02/12/2034

600‌

480‌

3.75%,

01/11/2028

250‌

236‌

3.75%,

04/19/2071

400‌

248‌

3.77%,

05/24/2061

200‌

126‌

3.90%,

04/27/2025

(e)

600‌

591‌

4.13%,

01/21/2026

500‌

487‌

4.50%,

04/22/2029

300‌

286‌

4.50%,

01/31/2050

800‌

607‌

4.60%,

02/10/2048

700‌

540‌

4.75%,

03/08/2044

506‌

408‌

5.55%,

01/21/2045

300‌

269‌

6.05%,

01/11/2040

464‌

450‌

Panama

Government

International

Bond

2.25%,

09/29/2032

200‌

148‌

3.30%,

01/19/2033

(e)

200‌

162‌

3.75%,

03/16/2025

800‌

773‌

3.87%,

07/23/2060

340‌

219‌

3.88%,

03/17/2028

500‌

470‌

4.30%,

04/29/2053

400‌

289‌

4.50%,

05/15/2047

200‌

154‌

4.50%,

04/16/2050

400‌

302‌

6.70%,

01/26/2036

224‌

233‌

Peruvian

Government

International

Bond

1.86%,

12/01/2032

780‌

569‌

2.78%,

01/23/2031

145‌

120‌

2.78%,

12/01/2060

180‌

105‌

3.30%,

03/11/2041

340‌

247‌

3.55%,

03/10/2051

(e)

200‌

142‌

5.63%,

11/18/2050

528‌

521‌

6.55%,

03/14/2037

126‌

133‌

7.35%,

07/21/2025

180‌

189‌

8.75%,

11/21/2033

192‌

233‌

Philippine

Government

International

Bond

2.46%,

05/05/2030

500‌

434‌

2.65%,

12/10/2045

400‌

268‌

2.95%,

05/05/2045

200‌

144‌

3.00%,

02/01/2028

300‌

279‌

3.20%,

07/06/2046

200‌

146‌

3.70%,

03/01/2041

200‌

163‌

3.70%,

02/02/2042

230‌

187‌

5.00%,

01/13/2037

300‌

290‌

6.38%,

10/23/2034

210‌

232‌

9.50%,

02/02/2030

400‌

508‌

10.63%,

03/16/2025

400‌

451‌

Republic

of

Italy

Government

International

Bond

0.88%,

05/06/2024

200‌

187‌

1.25%,

02/17/2026

400‌

347‌

2.38%,

10/17/2024

200‌

188‌

2.88%,

10/17/2029

200‌

166‌

3.88%,

05/06/2051

600‌

403‌

5.38%,

06/15/2033

420‌

407‌

State

of

Israel

2.50%,

01/15/2030

200‌

178‌

3.38%,

01/15/2050

400‌

307‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

156

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Sovereign

(continued)

Svensk

Exportkredit

AB

0.38%,

03/11/2024

$

200‌

$

190‌

0.50%,

08/26/2025

835‌

751‌

3.63%,

09/03/2024

200‌

196‌

Tennessee

Valley

Authority

2.88%,

02/01/2027

250‌

237‌

3.50%,

12/15/2042

400‌

332‌

4.25%,

09/15/2065

200‌

174‌

4.63%,

09/15/2060

300‌

280‌

5.25%,

09/15/2039

251‌

261‌

5.38%,

04/01/2056

154‌

163‌

5.88%,

04/01/2036

300‌

329‌

6.75%,

11/01/2025

102‌

108‌

Uruguay

Government

International

Bond

4.13%,

11/20/2045

100‌

92‌

4.38%,

10/27/2027

390‌

393‌

4.98%,

04/20/2055

210‌

201‌

5.10%,

06/18/2050

725‌

710‌

5.75%,

10/28/2034

(e)

150‌

162‌

$

33,821‌

Supranational

Bank

-

1.43%

African

Development

Bank

0.88%,

03/23/2026

345‌

308‌

0.88%,

07/22/2026

385‌

341‌

Asian

Development

Bank

0.38%,

06/11/2024

385‌

362‌

0.38%,

09/03/2025

325‌

292‌

0.50%,

02/04/2026

400‌

356‌

1.00%,

04/14/2026

380‌

342‌

1.25%,

06/09/2028

100‌

86‌

1.50%,

01/20/2027

400‌

360‌

1.50%,

03/04/2031

195‌

160‌

1.75%,

09/19/2029

325‌

280‌

1.88%,

03/15/2029

390‌

341‌

2.13%,

03/19/2025

300‌

285‌

2.63%,

01/30/2024

1,500‌

1,465‌

2.75%,

01/19/2028

250‌

234‌

2.88%,

05/06/2025

340‌

328‌

3.13%,

08/20/2027

705‌

673‌

3.13%,

04/27/2032

340‌

314‌

3.88%,

09/28/2032

100‌

98‌

4.13%,

09/27/2024

315‌

312‌

5.82%,

06/16/2028

15‌

16‌

6.38%,

10/01/2028

51‌

56‌

Asian

Infrastructure

Investment

Bank/The

2.25%,

05/16/2024

900‌

869‌

3.38%,

06/29/2025

355‌

345‌

3.75%,

09/14/2027

325‌

316‌

Council

Of

Europe

Development

Bank

0.38%,

06/10/2024

385‌

361‌

1.38%,

02/27/2025

320‌

300‌

European

Bank

for

Reconstruction

&

Development

0.50%,

11/25/2025

385‌

344‌

0.50%,

01/28/2026

(e)

380‌

338‌

1.63%,

09/27/2024

650‌

617‌

European

Investment

Bank

0.38%,

07/24/2024

(e)

475‌

445‌

0.38%,

12/15/2025

340‌

303‌

0.38%,

03/26/2026

480‌

424‌

0.63%,

10/21/2027

285‌

242‌

0.75%,

10/26/2026

190‌

167‌

1.25%,

02/14/2031

(e)

355‌

288‌

1.38%,

03/15/2027

400‌

358‌

1.63%,

03/14/2025

315‌

297‌

1.63%,

05/13/2031

395‌

330‌

1.75%,

03/15/2029

(e)

200‌

174‌

1.88%,

02/10/2025

600‌

569‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Supranational

Bank

(continued)

European

Investment

Bank  

(continued)

2.25%,

06/24/2024

$

500‌

$

483‌

2.38%,

05/24/2027

(e)

300‌

279‌

2.63%,

03/15/2024

1,000‌

974‌

3.25%,

01/29/2024

850‌

836‌

3.25%,

11/15/2027

(e)

325‌

312‌

FMS

Wertmanagement

2.75%,

01/30/2024

500‌

489‌

Inter-American

Development

Bank

0.50%,

09/23/2024

610‌

568‌

0.63%,

09/16/2027

340‌

288‌

0.88%,

04/20/2026

425‌

380‌

1.13%,

07/20/2028

385‌

327‌

1.13%,

01/13/2031

385‌

308‌

1.50%,

01/13/2027

400‌

360‌

1.75%,

03/14/2025

585‌

552‌

2.13%,

01/15/2025

500‌

477‌

2.38%,

07/07/2027

500‌

462‌

3.00%,

02/21/2024

250‌

245‌

3.13%,

09/18/2028

500‌

473‌

3.50%,

09/14/2029

320‌

307‌

4.38%,

01/24/2044

50‌

49‌

International

Bank

for

Reconstruction

&

Development

0.50%,

10/28/2025

905‌

813‌

0.75%,

11/24/2027

365‌

310‌

0.75%,

08/26/2030

385‌

300‌

0.88%,

07/15/2026

580‌

516‌

1.25%,

02/10/2031

385‌

311‌

1.38%,

04/20/2028

930‌

808‌

1.63%,

01/15/2025

475‌

449‌

1.63%,

11/03/2031

385‌

315‌

1.75%,

10/23/2029

680‌

585‌

2.50%,

03/19/2024

800‌

778‌

2.50%,

11/25/2024

800‌

770‌

2.50%,

07/29/2025

850‌

811‌

2.50%,

03/29/2032

355‌

312‌

3.13%,

06/15/2027

(e)

645‌

616‌

3.63%,

09/21/2029

315‌

305‌

International

Finance

Corp

0.38%,

07/16/2025

1,080‌

977‌

3.63%,

09/15/2025

150‌

147‌

Nordic

Investment

Bank

0.38%,

09/11/2025

255‌

229‌

0.50%,

01/21/2026

(e)

400‌

359‌

2.25%,

05/21/2024

500‌

483‌

3.38%,

09/08/2027

325‌

314‌

$

32,773‌

Telecommunications

-

1.07%

America

Movil

SAB

de

CV

4.38%,

04/22/2049

250‌

213‌

6.13%,

03/30/2040

102‌

105‌

6.38%,

03/01/2035

200‌

212‌

AT&T

Inc

0.90%,

03/25/2024

385‌

366‌

1.65%,

02/01/2028

330‌

279‌

1.70%,

03/25/2026

135‌

122‌

2.25%,

02/01/2032

240‌

188‌

2.30%,

06/01/2027

465‌

414‌

2.75%,

06/01/2031

310‌

257‌

2.95%,

07/15/2026

(e)

20‌

19‌

3.10%,

02/01/2043

240‌

166‌

3.50%,

06/01/2041

310‌

231‌

3.50%,

09/15/2053

904‌

610‌

3.55%,

09/15/2055

1,198‌

799‌

3.65%,

06/01/2051

755‌

532‌

3.65%,

09/15/2059

1,057‌

707‌

3.80%,

02/15/2027

40‌

38‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

157

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Telecommunications

(continued)

AT&T

Inc  

(continued)

4.10%,

02/15/2028

$

81‌

$

77‌

4.25%,

03/01/2027

230‌

224‌

4.30%,

12/15/2042

221‌

181‌

4.35%,

03/01/2029

500‌

475‌

4.35%,

06/15/2045

260‌

209‌

4.50%,

03/09/2048

490‌

399‌

Bell

Telephone

Co

of

Canada

or

Bell

Canada/The

3.65%,

03/17/2051

190‌

137‌

British

Telecommunications

PLC

9.62%,

12/15/2030

577‌

691‌

Cisco

Systems

Inc

2.50%,

09/20/2026

580‌

540‌

5.50%,

01/15/2040

600‌

624‌

Corning

Inc

4.38%,

11/15/2057

300‌

233‌

4.75%,

03/15/2042

102‌

91‌

Deutsche

Telekom

International

Finance

BV

8.75%,

06/15/2030

641‌

756‌

Juniper

Networks

Inc

2.00%,

12/10/2030

185‌

141‌

Motorola

Solutions

Inc

4.00%,

09/01/2024

49‌

48‌

Orange

SA

5.38%,

01/13/2042

102‌

99‌

Rogers

Communications

Inc

2.95%,

03/15/2025

(h)

195‌

186‌

3.20%,

03/15/2027

(h)

395‌

365‌

3.70%,

11/15/2049

225‌

152‌

3.80%,

03/15/2032

(h)

195‌

168‌

5.00%,

03/15/2044

500‌

428‌

Telefonica

Emisiones

SA

5.21%,

03/08/2047

530‌

426‌

7.05%,

06/20/2036

795‌

815‌

TELUS

Corp

4.60%,

11/16/2048

300‌

254‌

T-Mobile

USA

Inc

1.50%,

02/15/2026

320‌

287‌

2.05%,

02/15/2028

320‌

275‌

2.25%,

11/15/2031

350‌

275‌

2.40%,

03/15/2029

310‌

262‌

2.55%,

02/15/2031

245‌

200‌

3.00%,

02/15/2041

170‌

120‌

3.30%,

02/15/2051

310‌

207‌

3.40%,

10/15/2052

260‌

175‌

3.50%,

04/15/2025

150‌

144‌

3.75%,

04/15/2027

295‌

278‌

3.88%,

04/15/2030

295‌

267‌

4.38%,

04/15/2040

150‌

128‌

4.50%,

04/15/2050

295‌

242‌

5.20%,

01/15/2033

555‌

550‌

5.65%,

01/15/2053

370‌

358‌

Verizon

Communications

Inc

1.45%,

03/20/2026

385‌

346‌

1.50%,

09/18/2030

450‌

350‌

1.68%,

10/30/2030

748‌

583‌

1.75%,

01/20/2031

360‌

279‌

2.10%,

03/22/2028

580‌

503‌

2.36%,

03/15/2032

180‌

143‌

2.55%,

03/21/2031

385‌

317‌

2.63%,

08/15/2026

25‌

23‌

2.65%,

11/20/2040

135‌

91‌

2.88%,

11/20/2050

360‌

226‌

2.99%,

10/30/2056

562‌

343‌

3.00%,

11/20/2060

80‌

48‌

3.38%,

02/15/2025

40‌

39‌

3.40%,

03/22/2041

385‌

289‌

3.55%,

03/22/2051

385‌

274‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Telecommunications

(continued)

Verizon

Communications

Inc  

(continued)

3.70%,

03/22/2061

$

190‌

$

132‌

3.85%,

11/01/2042

275‌

218‌

3.88%,

02/08/2029

400‌

375‌

4.13%,

03/16/2027

300‌

292‌

4.33%,

09/21/2028

500‌

481‌

4.40%,

11/01/2034

750‌

689‌

4.50%,

08/10/2033

360‌

337‌

4.81%,

03/15/2039

600‌

550‌

Vodafone

Group

PLC

4.25%,

09/17/2050

165‌

126‌

5.00%,

05/30/2038

250‌

230‌

5.25%,

05/30/2048

400‌

352‌

6.15%,

02/27/2037

201‌

204‌

$

24,585‌

Toys,

Games

&

Hobbies

-

0.00%

Hasbro

Inc

6.35%,

03/15/2040

25‌

24‌

Transportation

-

0.56%

Burlington

Northern

Santa

Fe

LLC

3.05%,

02/15/2051

400‌

278‌

3.30%,

09/15/2051

200‌

146‌

3.40%,

09/01/2024

230‌

224‌

3.55%,

02/15/2050

115‌

88‌

4.38%,

09/01/2042

545‌

486‌

4.45%,

03/15/2043

20‌

18‌

4.45%,

01/15/2053

100‌

89‌

4.55%,

09/01/2044

15‌

14‌

5.15%,

09/01/2043

350‌

341‌

Canadian

National

Railway

Co

2.45%,

05/01/2050

65‌

40‌

3.20%,

08/02/2046

400‌

293‌

3.65%,

02/03/2048

75‌

60‌

3.85%,

08/05/2032

175‌

163‌

Canadian

Pacific

Railway

Co

1.75%,

12/02/2026

390‌

348‌

2.45%,

12/02/2031

190‌

157‌

3.00%,

12/02/2041

190‌

143‌

3.10%,

12/02/2051

190‌

128‌

4.80%,

09/15/2035

500‌

467‌

CSX

Corp

2.40%,

02/15/2030

65‌

55‌

2.60%,

11/01/2026

300‌

276‌

3.25%,

06/01/2027

40‌

37‌

3.35%,

11/01/2025

250‌

240‌

3.35%,

09/15/2049

70‌

50‌

3.80%,

03/01/2028

100‌

95‌

3.80%,

11/01/2046

30‌

24‌

4.25%,

11/01/2066

400‌

314‌

4.30%,

03/01/2048

105‌

89‌

4.50%,

11/15/2052

155‌

135‌

4.75%,

05/30/2042

277‌

253‌

FedEx

Corp

3.10%,

08/05/2029

550‌

485‌

3.88%,

08/01/2042

100‌

76‌

4.40%,

01/15/2047

405‌

323‌

4.55%,

04/01/2046

400‌

324‌

4.75%,

11/15/2045

525‌

443‌

Kansas

City

Southern/Old

4.70%,

05/01/2048

300‌

258‌

Norfolk

Southern

Corp

2.30%,

05/15/2031

195‌

160‌

2.55%,

11/01/2029

155‌

133‌

2.90%,

08/25/2051

190‌

123‌

3.85%,

01/15/2024

200‌

198‌

3.94%,

11/01/2047

398‌

319‌

4.15%,

02/28/2048

200‌

164‌

4.55%,

06/01/2053

70‌

61‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

158

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Transportation

(continued)

Norfolk

Southern

Corp  

(continued)

4.84%,

10/01/2041

$

100‌

$

92‌

Ryder

System

Inc

2.50%,

09/01/2024

80‌

76‌

2.90%,

12/01/2026

150‌

137‌

4.30%,

06/15/2027

55‌

53‌

Union

Pacific

Corp

2.15%,

02/05/2027

230‌

208‌

2.38%,

05/20/2031

195‌

164‌

2.80%,

02/14/2032

185‌

160‌

2.89%,

04/06/2036

210‌

167‌

3.15%,

03/01/2024

400‌

392‌

3.20%,

05/20/2041

195‌

153‌

3.38%,

02/14/2042

190‌

151‌

3.80%,

10/01/2051

577‌

459‌

3.80%,

04/06/2071

175‌

129‌

3.84%,

03/20/2060

575‌

444‌

4.50%,

01/20/2033

160‌

156‌

4.95%,

09/09/2052

160‌

153‌

United

Parcel

Service

Inc

2.50%,

09/01/2029

125‌

109‌

3.40%,

09/01/2049

770‌

595‌

3.90%,

04/01/2025

665‌

654‌

4.88%,

11/15/2040

25‌

24‌

5.20%,

04/01/2040

125‌

125‌

6.20%,

01/15/2038

23‌

25‌

$

12,744‌

Trucking

&

Leasing

-

0.01%

GATX

Corp

1.90%,

06/01/2031

380‌

280‌

Water

-

0.06%

American

Water

Capital

Corp

2.30%,

06/01/2031

195‌

160‌

3.25%,

06/01/2051

195‌

139‌

3.75%,

09/01/2047

180‌

140‌

4.15%,

06/01/2049

650‌

535‌

4.45%,

06/01/2032

110‌

105‌

6.59%,

10/15/2037

5‌

6‌

Essential

Utilities

Inc

2.40%,

05/01/2031

190‌

151‌

5.30%,

05/01/2052

185‌

173‌

$

1,409‌

TOTAL

BONDS

$

685,402‌

MUNICIPAL

BONDS

-

0.57%

Principal

Amount

(000's)

Value

(000's)

California

-

0.18%

Bay

Area

Toll

Authority

6.26%,

04/01/2049

$

300‌

$

340‌

6.92%,

04/01/2040

120‌

140‌

California

State

University

2.98%,

11/01/2051

160‌

111‌

East

Bay

Municipal

Utility

District

Water

System

Revenue

5.87%,

06/01/2040

60‌

65‌

Los

Angeles

Department

of

Water

&

Power

6.57%,

07/01/2045

150‌

177‌

Los

Angeles

Unified

School

District/CA

5.75%,

07/01/2034

80‌

83‌

5.76%,

07/01/2029

50‌

52‌

6.76%,

07/01/2034

530‌

593‌

Regents

of

the

University

of

California

Medical

Center

Pooled

Revenue

6.55%,

05/15/2048

250‌

284‌

San

Diego

County

Water

Authority

6.14%,

05/01/2049

260‌

287‌

Santa

Clara

Valley

Transportation

Authority

5.88%,

04/01/2032

25‌

26‌

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

California

(continued)

State

of

California

3.50%,

04/01/2028

$

165‌

$

155‌

7.30%,

10/01/2039

375‌

456‌

7.35%,

11/01/2039

500‌

610‌

7.60%,

11/01/2040

180‌

231‌

7.63%,

03/01/2040

280‌

354‌

University

of

California

5.77%,

05/15/2043

200‌

210‌

$

4,174‌

District

of

Columbia

-

0.02%

District

of

Columbia

Water

&

Sewer

Authority

4.81%,

10/01/2114

450‌

390‌

Georgia

-

0.02%

Municipal

Electric

Authority

of

Georgia

6.64%,

04/01/2057

146‌

156‌

7.06%,

04/01/2057

193‌

196‌

$

352‌

Illinois

-

0.06%

Chicago

Transit

Authority

Sales

&

Transfer

Tax

Receipts

Revenue

6.90%,

12/01/2040

195‌

216‌

Chicago

Transit

Authority

Sales

Tax

Receipts

Fund

6.20%,

12/01/2040

70‌

75‌

County

of

Cook

IL

6.23%,

11/15/2034

102‌

110‌

State

of

Illinois

5.10%,

06/01/2033

1,000‌

960‌

7.35%,

07/01/2035

65‌

68‌

$

1,429‌

Kansas

-

0.01%

State

of

Kansas

Department

of

Transportation

4.60%,

09/01/2035

115‌

112‌

Nevada

-

0.00%

County

of

Clark

Department

of

Aviation

6.82%,

07/01/2045

25‌

29‌

New

Jersey

-

0.06%

New

Jersey

Economic

Development

Authority

(credit

support

from

National

Public

Finance

Guarantee

Corp

)

7.43%,

02/15/2029

(i)

700‌

754‌

New

Jersey

Transportation

Trust

Fund

Authority

5.75%,

12/15/2028

190‌

191‌

6.56%,

12/15/2040

210‌

226‌

New

Jersey

Turnpike

Authority

7.10%,

01/01/2041

147‌

177‌

Rutgers

The

State

University

of

New

Jersey

5.67%,

05/01/2040

130‌

134‌

$

1,482‌

New

York

-

0.09%

City

of

New

York

NY

5.52%,

10/01/2037

25‌

26‌

Metropolitan

Transportation

Authority

6.81%,

11/15/2040

135‌

141‌

New

York

City

Municipal

Water

Finance

Authority

5.72%,

06/15/2042

270‌

290‌

5.95%,

06/15/2042

125‌

138‌

New

York

City

Transitional

Finance

Authority

Future

Tax

Secured

Revenue

5.51%,

08/01/2037

250‌

257‌

New

York

State

Dormitory

Authority

5.60%,

03/15/2040

435‌

450‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

159

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

New

York

(continued)

Port

Authority

of

New

York

&

New

Jersey

4.46%,

10/01/2062

$

400‌

$

347‌

4.96%,

08/01/2046

300‌

291‌

6.04%,

12/01/2029

50‌

53‌

$

1,993‌

Ohio

-

0.01%

American

Municipal

Power

Inc

6.27%,

02/15/2050

64‌

68‌

Ohio

State

University/The

4.91%,

06/01/2040

125‌

125‌

$

193‌

Pennsylvania

-

0.02%

State

Public

School

Building

Authority

5.00%,

09/15/2027

500‌

501‌

Texas

-

0.08%

City

of

San

Antonio

TX

Electric

&

Gas

Systems

Revenue

5.81%,

02/01/2041

135‌

144‌

Dallas

Area

Rapid

Transit

5.02%,

12/01/2048

50‌

48‌

Dallas

Convention

Center

Hotel

Development

Corp

7.09%,

01/01/2042

70‌

76‌

Dallas

County

Hospital

District

5.62%,

08/15/2044

83‌

88‌

Dallas

Independent

School

District

(credit

support

from

Permanent

School

Fund

Guarantee

Program

)

6.45%,

02/15/2035

(i)

50‌

50‌

Grand

Parkway

Transportation

Corp

5.18%,

10/01/2042

300‌

307‌

State

of

Texas

4.68%,

04/01/2040

100‌

97‌

5.52%,

04/01/2039

405‌

428‌

Texas

Transportation

Commission

State

Highway

Fund

5.18%,

04/01/2030

625‌

637‌

$

1,875‌

Utah

-

0.01%

State

of

Utah

3.54%,

07/01/2025

220‌

216‌

Wisconsin

-

0.01%

State

of

Wisconsin

(credit

support

from

Assured

Guaranty

Municipal

Corp

)

5.70%,

05/01/2026

(i)

280‌

285‌

TOTAL

MUNICIPAL

BONDS

$

13,031‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

68.35%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

1.46%

2.00%,

08/01/2029

$

174‌

$

160‌

2.00%,

10/01/2031

44‌

40‌

2.00%,

03/01/2032

86‌

79‌

2.50%,

10/01/2027

46‌

44‌

2.50%,

03/01/2028

116‌

110‌

2.50%,

06/01/2028

71‌

68‌

2.50%,

06/01/2028

166‌

158‌

2.50%,

07/01/2028

116‌

111‌

2.50%,

10/01/2028

82‌

77‌

2.50%,

10/01/2028

56‌

53‌

2.50%,

10/01/2029

148‌

139‌

2.50%,

12/01/2029

175‌

164‌

2.50%,

09/01/2030

305‌

287‌

2.50%,

01/01/2031

333‌

312‌

2.50%,

01/01/2031

31‌

29‌

2.50%,

02/01/2031

36‌

34‌

2.50%,

03/01/2031

100‌

94‌

2.50%,

12/01/2031

112‌

105‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

2.50%,

12/01/2031

$

124‌

$

116‌

2.50%,

02/01/2032

145‌

136‌

2.50%,

03/01/2032

191‌

179‌

2.50%,

11/01/2032

368‌

344‌

2.50%,

02/01/2033

107‌

100‌

2.50%,

03/01/2033

73‌

68‌

2.50%,

03/01/2033

246‌

231‌

2.50%,

04/01/2033

116‌

107‌

2.50%,

05/01/2033

48‌

44‌

2.50%,

06/01/2033

77‌

71‌

2.50%,

11/01/2036

69‌

62‌

2.50%,

02/01/2043

89‌

77‌

2.50%,

03/01/2043

70‌

61‌

3.00%,

01/01/2027

41‌

40‌

3.00%,

03/01/2027

32‌

31‌

3.00%,

05/01/2027

35‌

34‌

3.00%,

10/01/2028

119‌

115‌

3.00%,

07/01/2029

153‌

147‌

3.00%,

08/01/2029

67‌

64‌

3.00%,

10/01/2029

40‌

38‌

3.00%,

11/01/2029

68‌

65‌

3.00%,

07/01/2030

153‌

147‌

3.00%,

09/01/2030

206‌

198‌

3.00%,

11/01/2030

36‌

34‌

3.00%,

11/01/2030

63‌

60‌

3.00%,

01/01/2031

71‌

68‌

3.00%,

04/01/2031

150‌

144‌

3.00%,

02/01/2032

33‌

31‌

3.00%,

05/01/2032

54‌

51‌

3.00%,

12/01/2032

240‌

229‌

3.00%,

12/01/2032

237‌

226‌

3.00%,

01/01/2033

324‌

309‌

3.00%,

02/01/2033

189‌

179‌

3.00%,

03/01/2033

117‌

112‌

3.00%,

04/01/2033

104‌

97‌

3.00%,

04/01/2033

82‌

77‌

3.00%,

06/01/2033

65‌

61‌

3.00%,

09/01/2033

89‌

83‌

3.00%,

09/01/2033

95‌

89‌

3.00%,

12/01/2034

23‌

22‌

3.00%,

01/01/2035

16‌

15‌

3.00%,

02/01/2035

23‌

22‌

3.00%,

05/01/2035

192‌

178‌

3.00%,

02/01/2036

44‌

41‌

3.00%,

09/01/2036

48‌

44‌

3.00%,

02/01/2037

57‌

53‌

3.00%,

05/01/2037

63‌

58‌

3.00%,

06/01/2037

64‌

60‌

3.00%,

07/01/2037

101‌

94‌

3.00%,

09/01/2037

21‌

20‌

3.00%,

01/01/2043

139‌

127‌

3.00%,

01/01/2043

149‌

136‌

3.00%,

02/01/2043

632‌

575‌

3.00%,

03/01/2043

365‌

332‌

3.00%,

04/01/2043

127‌

116‌

3.00%,

05/01/2043

124‌

113‌

3.00%,

06/01/2043

230‌

210‌

3.00%,

07/01/2043

233‌

213‌

3.00%,

07/01/2043

211‌

192‌

3.00%,

07/01/2043

401‌

365‌

3.00%,

07/01/2043

365‌

332‌

3.00%,

08/01/2043

49‌

44‌

3.00%,

08/01/2043

68‌

62‌

3.00%,

08/01/2043

122‌

111‌

3.00%,

08/01/2043

676‌

616‌

3.00%,

09/01/2043

254‌

231‌

3.00%,

09/01/2043

279‌

254‌

3.00%,

09/01/2043

121‌

110‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

160

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

3.00%,

10/01/2043

$

98‌

$

90‌

3.00%,

10/01/2043

244‌

222‌

3.00%,

03/01/2045

210‌

190‌

3.00%,

04/01/2045

76‌

68‌

3.00%,

06/01/2045

275‌

248‌

3.00%,

07/01/2045

161‌

145‌

3.00%,

07/01/2045

221‌

200‌

3.00%,

08/01/2045

315‌

283‌

3.00%,

08/01/2045

101‌

91‌

3.00%,

08/01/2045

97‌

87‌

3.00%,

12/01/2045

433‌

389‌

3.00%,

03/01/2046

189‌

169‌

3.00%,

03/01/2046

18‌

16‌

3.00%,

04/01/2046

258‌

231‌

3.00%,

04/01/2046

24‌

21‌

3.00%,

05/01/2046

68‌

61‌

3.00%,

09/01/2046

309‌

277‌

3.00%,

10/01/2046

326‌

292‌

3.00%,

11/01/2046

536‌

479‌

3.00%,

11/01/2046

54‌

48‌

3.00%,

11/01/2046

318‌

285‌

3.00%,

11/01/2046

350‌

313‌

3.00%,

12/01/2046

395‌

354‌

3.00%,

12/01/2046

439‌

393‌

3.00%,

01/01/2047

601‌

538‌

3.00%,

03/01/2047

599‌

536‌

3.00%,

03/01/2048

218‌

194‌

3.50%,

10/01/2025

31‌

30‌

3.50%,

11/01/2025

36‌

36‌

3.50%,

12/01/2026

35‌

35‌

3.50%,

01/01/2029

63‌

61‌

3.50%,

01/01/2032

45‌

44‌

3.50%,

02/01/2032

28‌

27‌

3.50%,

03/01/2032

33‌

32‌

3.50%,

04/01/2032

34‌

33‌

3.50%,

08/01/2032

26‌

25‌

3.50%,

09/01/2033

92‌

89‌

3.50%,

01/01/2034

29‌

28‌

3.50%,

01/01/2035

62‌

60‌

3.50%,

02/01/2035

52‌

50‌

3.50%,

07/01/2035

88‌

84‌

3.50%,

09/01/2035

121‌

116‌

3.50%,

04/01/2037

34‌

33‌

3.50%,

06/01/2037

66‌

63‌

3.50%,

05/01/2041

38‌

35‌

3.50%,

02/01/2042

120‌

113‌

3.50%,

04/01/2042

42‌

39‌

3.50%,

06/01/2042

96‌

90‌

3.50%,

07/01/2042

109‌

102‌

3.50%,

07/01/2042

147‌

138‌

3.50%,

08/01/2042

65‌

60‌

3.50%,

08/01/2042

148‌

138‌

3.50%,

02/01/2044

216‌

201‌

3.50%,

06/01/2044

190‌

178‌

3.50%,

09/01/2044

107‌

100‌

3.50%,

02/01/2045

120‌

111‌

3.50%,

03/01/2045

172‌

160‌

3.50%,

06/01/2045

198‌

184‌

3.50%,

07/01/2045

325‌

303‌

3.50%,

09/01/2045

168‌

156‌

3.50%,

10/01/2045

191‌

177‌

3.50%,

11/01/2045

315‌

294‌

3.50%,

12/01/2045

225‌

209‌

3.50%,

12/01/2045

257‌

239‌

3.50%,

12/01/2045

31‌

28‌

3.50%,

01/01/2046

18‌

17‌

3.50%,

01/01/2046

89‌

83‌

3.50%,

03/01/2046

157‌

146‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

3.50%,

03/01/2046

$

806‌

$

750‌

3.50%,

04/01/2046

194‌

181‌

3.50%,

05/01/2046

208‌

195‌

3.50%,

06/01/2046

245‌

227‌

3.50%,

08/01/2046

171‌

160‌

3.50%,

04/01/2047

256‌

237‌

3.50%,

11/01/2047

287‌

267‌

3.50%,

11/01/2047

182‌

169‌

3.50%,

05/01/2048

33‌

30‌

3.50%,

06/01/2048

113‌

105‌

3.50%,

06/01/2048

335‌

311‌

3.50%,

09/01/2048

111‌

103‌

4.00%,

06/01/2025

17‌

17‌

4.00%,

07/01/2025

27‌

27‌

4.00%,

12/01/2030

14‌

14‌

4.00%,

08/01/2031

14‌

14‌

4.00%,

10/01/2031

22‌

21‌

4.00%,

11/01/2031

6‌

6‌

4.00%,

12/01/2031

11‌

11‌

4.00%,

11/01/2033

30‌

30‌

4.00%,

01/01/2034

55‌

53‌

4.00%,

07/01/2035

20‌

19‌

4.00%,

03/01/2037

85‌

82‌

4.00%,

05/01/2038

30‌

29‌

4.00%,

02/01/2041

74‌

71‌

4.00%,

06/01/2042

48‌

46‌

4.00%,

06/01/2042

54‌

52‌

4.00%,

08/01/2043

339‌

325‌

4.00%,

01/01/2044

61‌

59‌

4.00%,

02/01/2044

140‌

134‌

4.00%,

03/01/2044

54‌

52‌

4.00%,

04/01/2044

141‌

136‌

4.00%,

05/01/2044

37‌

35‌

4.00%,

07/01/2044

80‌

77‌

4.00%,

07/01/2044

72‌

69‌

4.00%,

10/01/2044

98‌

94‌

4.00%,

11/01/2044

224‌

215‌

4.00%,

12/01/2044

217‌

208‌

4.00%,

01/01/2045

60‌

57‌

4.00%,

02/01/2045

66‌

63‌

4.00%,

04/01/2045

70‌

67‌

4.00%,

05/01/2045

45‌

43‌

4.00%,

06/01/2045

85‌

82‌

4.00%,

07/01/2045

93‌

90‌

4.00%,

08/01/2045

304‌

292‌

4.00%,

08/01/2045

31‌

30‌

4.00%,

08/01/2045

34‌

33‌

4.00%,

09/01/2045

85‌

82‌

4.00%,

09/01/2045

328‌

315‌

4.00%,

10/01/2045

334‌

320‌

4.00%,

11/01/2045

213‌

205‌

4.00%,

12/01/2045

97‌

93‌

4.00%,

03/01/2047

251‌

242‌

4.00%,

08/01/2047

261‌

249‌

4.00%,

10/01/2047

191‌

181‌

4.00%,

12/01/2047

311‌

297‌

4.00%,

07/01/2048

172‌

164‌

4.00%,

08/01/2048

102‌

97‌

4.00%,

09/01/2048

260‌

248‌

4.50%,

08/01/2023

4‌

4‌

4.50%,

05/01/2024

8‌

8‌

4.50%,

02/01/2030

4‌

4‌

4.50%,

08/01/2030

4‌

4‌

4.50%,

05/01/2031

5‌

5‌

4.50%,

06/01/2031

33‌

33‌

4.50%,

06/01/2039

55‌

54‌

4.50%,

10/01/2039

39‌

39‌

4.50%,

10/01/2040

49‌

49‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

161

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

4.50%,

03/01/2041

$

109‌

$

108‌

4.50%,

03/01/2041

119‌

116‌

4.50%,

11/01/2041

120‌

119‌

4.50%,

09/01/2043

68‌

66‌

4.50%,

11/01/2043

31‌

31‌

4.50%,

11/01/2043

64‌

62‌

4.50%,

01/01/2044

57‌

56‌

4.50%,

01/01/2044

60‌

59‌

4.50%,

03/01/2044

60‌

59‌

4.50%,

05/01/2044

77‌

76‌

4.50%,

07/01/2044

38‌

38‌

4.50%,

09/01/2044

38‌

37‌

4.50%,

10/01/2045

89‌

88‌

4.50%,

02/01/2046

114‌

111‌

4.50%,

03/01/2047

32‌

31‌

4.50%,

03/01/2047

149‌

146‌

4.50%,

04/01/2047

33‌

33‌

4.50%,

06/01/2047

76‌

74‌

4.50%,

09/01/2047

80‌

79‌

4.50%,

11/01/2047

22‌

21‌

4.50%,

05/01/2048

63‌

62‌

4.50%,

07/01/2048

124‌

122‌

4.50%,

11/01/2048

69‌

68‌

4.50%,

01/01/2049

252‌

247‌

4.50%,

05/01/2049

650‌

637‌

5.00%,

09/01/2023

4‌

4‌

5.00%,

04/01/2024

3‌

3‌

5.00%,

01/01/2025

17‌

17‌

5.00%,

12/01/2027

13‌

13‌

5.00%,

02/01/2030

2‌

2‌

5.00%,

03/01/2030

1‌

1‌

5.00%,

04/01/2034

46‌

46‌

5.00%,

06/01/2035

56‌

57‌

5.00%,

01/01/2038

94‌

95‌

5.00%,

11/01/2038

76‌

77‌

5.00%,

12/01/2038

85‌

86‌

5.00%,

09/01/2039

133‌

136‌

5.00%,

01/01/2040

76‌

77‌

5.00%,

05/01/2040

31‌

31‌

5.00%,

04/01/2041

54‌

54‌

5.00%,

06/01/2041

50‌

50‌

5.00%,

11/01/2041

63‌

63‌

5.00%,

11/01/2041

47‌

48‌

5.50%,

01/01/2028

25‌

25‌

5.50%,

04/01/2036

46‌

47‌

5.50%,

12/01/2036

52‌

54‌

5.50%,

12/01/2036

50‌

52‌

5.50%,

03/01/2039

78‌

81‌

5.50%,

04/01/2039

49‌

51‌

5.50%,

02/01/2040

72‌

75‌

5.50%,

06/01/2041

107‌

111‌

6.00%,

02/01/2027

3‌

3‌

$

33,488‌

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

-

20.34%

1.50%,

03/01/2036

4,718‌

4,087‌

1.50%,

05/01/2036

7,502‌

6,499‌

1.50%,

11/01/2036

3,641‌

3,153‌

1.50%,

11/01/2050

2,281‌

1,766‌

1.50%,

01/01/2051

10,276‌

7,948‌

1.50%,

06/01/2051

7,482‌

5,779‌

2.00%,

09/01/2028

52‌

48‌

2.00%,

05/01/2030

108‌

98‌

2.00%,

04/01/2032

71‌

65‌

2.00%,

02/01/2036

6,553‌

5,845‌

2.00%,

03/01/2036

2,972‌

2,651‌

2.00%,

04/01/2036

7,329‌

6,560‌

2.00%,

05/01/2036

3,727‌

3,325‌

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)

2.00%,

06/01/2036

$

1,097‌

$

979‌

2.00%,

06/01/2036

3,353‌

2,991‌

2.00%,

04/01/2051

14,056‌

11,536‌

2.00%,

04/01/2051

8,496‌

7,013‌

2.00%,

04/01/2051

5,201‌

4,273‌

2.00%,

04/01/2051

8,648‌

7,097‌

2.00%,

04/01/2051

30,721‌

25,243‌

2.00%,

05/01/2051

17,779‌

14,592‌

2.00%,

06/01/2051

7,046‌

5,749‌

2.00%,

07/01/2051

7,929‌

6,469‌

2.00%,

09/01/2051

10,060‌

8,207‌

2.00%,

10/01/2051

6,981‌

5,690‌

2.00%,

10/01/2051

2,772‌

2,279‌

2.00%,

11/01/2051

7,419‌

6,085‌

2.00%,

12/01/2051

9,433‌

7,728‌

2.00%,

12/01/2051

12,101‌

9,914‌

2.00%,

01/01/2052

8,819‌

7,225‌

2.50%,

01/01/2028

54‌

51‌

2.50%,

07/01/2028

72‌

68‌

2.50%,

08/01/2028

38‌

36‌

2.50%,

08/01/2028

69‌

65‌

2.50%,

09/01/2028

81‌

77‌

2.50%,

07/01/2029

112‌

105‌

2.50%,

07/01/2029

48‌

46‌

2.50%,

07/01/2029

20‌

19‌

2.50%,

09/01/2029

91‌

85‌

2.50%,

12/01/2029

62‌

58‌

2.50%,

01/01/2030

73‌

69‌

2.50%,

04/01/2030

97‌

91‌

2.50%,

05/01/2030

200‌

188‌

2.50%,

06/01/2030

100‌

94‌

2.50%,

08/01/2030

53‌

50‌

2.50%,

08/01/2030

251‌

235‌

2.50%,

01/01/2031

84‌

79‌

2.50%,

01/01/2031

104‌

98‌

2.50%,

02/01/2031

141‌

132‌

2.50%,

02/01/2031

94‌

88‌

2.50%,

05/01/2031

56‌

52‌

2.50%,

06/01/2031

100‌

93‌

2.50%,

11/01/2031

1,029‌

962‌

2.50%,

12/01/2031

166‌

155‌

2.50%,

01/01/2032

200‌

187‌

2.50%,

01/01/2032

358‌

334‌

2.50%,

02/01/2032

250‌

233‌

2.50%,

03/01/2032

105‌

99‌

2.50%,

03/01/2032

58‌

54‌

2.50%,

11/01/2032

18‌

17‌

2.50%,

12/01/2032

53‌

49‌

2.50%,

01/01/2033

64‌

60‌

2.50%,

02/01/2033

245‌

229‌

2.50%,

04/01/2033

484‌

452‌

2.50%,

07/01/2033

43‌

39‌

2.50%,

10/01/2034

510‌

470‌

2.50%,

02/01/2035

1,454‌

1,339‌

2.50%,

06/01/2035

1,947‌

1,787‌

2.50%,

10/01/2036

19‌

17‌

2.50%,

10/01/2036

39‌

35‌

2.50%,

12/01/2036

84‌

75‌

2.50%,

07/01/2037

2,389‌

2,192‌

2.50%,

07/01/2040

1,660‌

1,460‌

2.50%,

01/01/2043

262‌

226‌

2.50%,

08/01/2043

90‌

77‌

2.50%,

10/01/2043

162‌

140‌

2.50%,

12/01/2046

62‌

54‌

2.50%,

07/01/2050

4,405‌

3,765‌

2.50%,

08/01/2050

2,292‌

1,965‌

2.50%,

09/01/2050

5,164‌

4,414‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

162

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%,

10/01/2050

$

3,512‌

$

2,995‌

2.50%,

02/01/2051

7,715‌

6,608‌

2.50%,

07/01/2051

2,119‌

1,799‌

2.50%,

07/01/2051

3,338‌

2,834‌

2.50%,

08/01/2051

3,771‌

3,202‌

2.50%,

09/01/2051

3,200‌

2,716‌

2.50%,

09/01/2051

3,547‌

3,035‌

2.50%,

09/01/2051

8,807‌

7,480‌

2.50%,

10/01/2051

6,666‌

5,658‌

2.50%,

11/01/2051

6,205‌

5,336‌

2.50%,

11/01/2051

7,194‌

6,153‌

2.50%,

02/01/2052

6,658‌

5,681‌

2.50%,

02/01/2052

5,022‌

4,260‌

2.50%,

02/01/2052

3,998‌

3,408‌

2.50%,

03/01/2052

7,046‌

6,017‌

2.50%,

03/01/2052

3,517‌

2,993‌

2.50%,

03/01/2052

6,267‌

5,336‌

2.50%,

04/01/2052

948‌

807‌

2.50%,

04/01/2052

3,687‌

3,149‌

2.50%,

04/01/2052

6,685‌

5,699‌

2.50%,

05/01/2052

2,904‌

2,474‌

3.00%,

11/01/2026

38‌

37‌

3.00%,

02/01/2027

67‌

64‌

3.00%,

04/01/2027

350‌

339‌

3.00%,

08/01/2027

49‌

47‌

3.00%,

10/01/2028

182‌

175‌

3.00%,

11/01/2028

61‌

59‌

3.00%,

02/01/2029

50‌

48‌

3.00%,

03/01/2029

87‌

83‌

3.00%,

03/01/2029

67‌

64‌

3.00%,

04/01/2029

71‌

68‌

3.00%,

05/01/2029

79‌

75‌

3.00%,

06/01/2029

52‌

50‌

3.00%,

08/01/2029

31‌

30‌

3.00%,

10/01/2029

52‌

50‌

3.00%,

10/01/2029

39‌

37‌

3.00%,

10/01/2029

37‌

35‌

3.00%,

11/01/2029

52‌

50‌

3.00%,

01/01/2030

192‌

185‌

3.00%,

01/01/2030

76‌

73‌

3.00%,

01/01/2030

206‌

198‌

3.00%,

03/01/2030

122‌

116‌

3.00%,

06/01/2030

92‌

88‌

3.00%,

06/01/2030

106‌

100‌

3.00%,

09/01/2030

145‌

139‌

3.00%,

09/01/2030

41‌

39‌

3.00%,

10/01/2030

117‌

112‌

3.00%,

02/01/2031

47‌

45‌

3.00%,

04/01/2032

538‌

515‌

3.00%,

05/01/2032

72‌

68‌

3.00%,

08/01/2032

108‌

102‌

3.00%,

01/01/2033

18‌

17‌

3.00%,

02/01/2033

273‌

259‌

3.00%,

02/01/2033

982‌

935‌

3.00%,

08/01/2033

329‌

308‌

3.00%,

05/01/2034

75‌

71‌

3.00%,

05/01/2034

53‌

49‌

3.00%,

08/01/2034

225‌

211‌

3.00%,

10/01/2034

24‌

22‌

3.00%,

11/01/2034

66‌

62‌

3.00%,

12/01/2034

835‌

784‌

3.00%,

02/01/2035

71‌

66‌

3.00%,

02/01/2035

68‌

63‌

3.00%,

03/01/2035

31‌

29‌

3.00%,

04/01/2035

31‌

29‌

3.00%,

06/01/2035

83‌

77‌

3.00%,

07/01/2035

30‌

28‌

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%,

11/01/2035

$

43‌

$

40‌

3.00%,

07/01/2036

63‌

59‌

3.00%,

12/01/2036

101‌

94‌

3.00%,

12/01/2036

144‌

133‌

3.00%,

12/01/2036

213‌

197‌

3.00%,

02/01/2037

13‌

12‌

3.00%,

02/01/2037

89‌

83‌

3.00%,

04/01/2037

69‌

64‌

3.00%,

04/01/2037

43‌

40‌

3.00%,

07/01/2037

26‌

24‌

3.00%,

08/01/2037

40‌

37‌

3.00%,

09/01/2037

113‌

105‌

3.00%,

01/01/2038

(j)

2,000‌

1,873‌

3.00%,

06/01/2040

1,326‌

1,200‌

3.00%,

04/01/2042

77‌

70‌

3.00%,

09/01/2042

36‌

33‌

3.00%,

12/01/2042

93‌

85‌

3.00%,

02/01/2043

202‌

183‌

3.00%,

02/01/2043

263‌

240‌

3.00%,

02/01/2043

404‌

368‌

3.00%,

04/01/2043

106‌

96‌

3.00%,

04/01/2043

413‌

376‌

3.00%,

04/01/2043

206‌

188‌

3.00%,

04/01/2043

159‌

145‌

3.00%,

04/01/2043

116‌

106‌

3.00%,

04/01/2043

250‌

227‌

3.00%,

04/01/2043

146‌

133‌

3.00%,

04/01/2043

155‌

141‌

3.00%,

04/01/2043

221‌

201‌

3.00%,

05/01/2043

100‌

91‌

3.00%,

05/01/2043

19‌

17‌

3.00%,

05/01/2043

186‌

169‌

3.00%,

05/01/2043

163‌

148‌

3.00%,

06/01/2043

149‌

136‌

3.00%,

06/01/2043

341‌

310‌

3.00%,

06/01/2043

142‌

129‌

3.00%,

06/01/2043

368‌

335‌

3.00%,

06/01/2043

202‌

184‌

3.00%,

07/01/2043

56‌

51‌

3.00%,

07/01/2043

259‌

236‌

3.00%,

07/01/2043

112‌

102‌

3.00%,

08/01/2043

354‌

321‌

3.00%,

08/01/2043

72‌

65‌

3.00%,

08/01/2043

137‌

124‌

3.00%,

08/01/2043

26‌

23‌

3.00%,

08/01/2043

236‌

215‌

3.00%,

08/01/2043

47‌

43‌

3.00%,

09/01/2043

302‌

274‌

3.00%,

09/01/2043

159‌

144‌

3.00%,

10/01/2043

369‌

335‌

3.00%,

10/01/2043

33‌

30‌

3.00%,

11/01/2043

126‌

115‌

3.00%,

11/01/2043

68‌

62‌

3.00%,

11/01/2043

44‌

40‌

3.00%,

01/01/2044

64‌

58‌

3.00%,

01/01/2045

180‌

163‌

3.00%,

05/01/2045

251‌

226‌

3.00%,

09/01/2045

34‌

31‌

3.00%,

10/01/2045

153‌

138‌

3.00%,

11/01/2045

36‌

32‌

3.00%,

11/01/2045

79‌

71‌

3.00%,

12/01/2045

221‌

198‌

3.00%,

01/01/2046

147‌

132‌

3.00%,

02/01/2046

245‌

219‌

3.00%,

02/01/2046

35‌

31‌

3.00%,

02/01/2046

222‌

199‌

3.00%,

04/01/2046

47‌

42‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

163

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%,

05/01/2046

$

41‌

$

37‌

3.00%,

05/01/2046

144‌

130‌

3.00%,

05/01/2046

95‌

85‌

3.00%,

06/01/2046

82‌

74‌

3.00%,

08/01/2046

139‌

125‌

3.00%,

08/01/2046

166‌

148‌

3.00%,

09/01/2046

108‌

97‌

3.00%,

09/01/2046

72‌

65‌

3.00%,

10/01/2046

538‌

481‌

3.00%,

10/01/2046

68‌

61‌

3.00%,

11/01/2046

340‌

304‌

3.00%,

11/01/2046

235‌

210‌

3.00%,

11/01/2046

39‌

35‌

3.00%,

11/01/2046

51‌

45‌

3.00%,

11/01/2046

387‌

347‌

3.00%,

11/01/2046

267‌

239‌

3.00%,

12/01/2046

417‌

373‌

3.00%,

12/01/2046

741‌

665‌

3.00%,

01/01/2047

271‌

241‌

3.00%,

01/01/2047

412‌

368‌

3.00%,

02/01/2047

308‌

275‌

3.00%,

02/01/2047

80‌

71‌

3.00%,

05/01/2047

174‌

155‌

3.00%,

10/01/2048

22‌

20‌

3.00%,

09/01/2049

2,217‌

1,962‌

3.00%,

10/01/2049

5,503‌

4,884‌

3.00%,

11/01/2049

328‌

291‌

3.00%,

11/01/2049

1,682‌

1,494‌

3.00%,

11/01/2049

1,101‌

974‌

3.00%,

11/01/2049

636‌

563‌

3.00%,

12/01/2049

4,031‌

3,578‌

3.00%,

03/01/2050

3,632‌

3,207‌

3.00%,

03/01/2050

3,328‌

2,951‌

3.00%,

06/01/2050

3,036‌

2,679‌

3.00%,

07/01/2050

6,495‌

5,772‌

3.00%,

07/01/2050

1,321‌

1,164‌

3.00%,

10/01/2050

2,221‌

1,964‌

3.00%,

03/01/2052

6,516‌

5,745‌

3.50%,

10/01/2025

46‌

45‌

3.50%,

11/01/2025

28‌

27‌

3.50%,

11/01/2025

68‌

67‌

3.50%,

01/01/2026

40‌

39‌

3.50%,

03/01/2026

59‌

57‌

3.50%,

12/01/2026

59‌

57‌

3.50%,

02/01/2027

37‌

36‌

3.50%,

11/01/2028

69‌

68‌

3.50%,

12/01/2028

42‌

40‌

3.50%,

03/01/2029

64‌

62‌

3.50%,

01/01/2031

3‌

3‌

3.50%,

04/01/2031

7‌

6‌

3.50%,

02/01/2032

26‌

25‌

3.50%,

04/01/2032

28‌

27‌

3.50%,

05/01/2032

61‌

59‌

3.50%,

06/01/2032

127‌

123‌

3.50%,

07/01/2032

41‌

39‌

3.50%,

09/01/2032

60‌

58‌

3.50%,

12/01/2032

1,339‌

1,294‌

3.50%,

09/01/2033

33‌

31‌

3.50%,

09/01/2033

43‌

42‌

3.50%,

10/01/2033

163‌

157‌

3.50%,

10/01/2033

68‌

65‌

3.50%,

11/01/2033

72‌

69‌

3.50%,

01/01/2034

45‌

43‌

3.50%,

06/01/2034

75‌

72‌

3.50%,

08/01/2034

19‌

18‌

3.50%,

11/01/2034

47‌

45‌

3.50%,

02/01/2035

769‌

738‌

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%,

12/01/2035

$

95‌

$

90‌

3.50%,

07/01/2036

105‌

101‌

3.50%,

02/01/2037

73‌

70‌

3.50%,

03/01/2037

84‌

81‌

3.50%,

05/01/2037

15‌

15‌

3.50%,

07/01/2037

32‌

31‌

3.50%,

10/01/2037

37‌

35‌

3.50%,

01/01/2038

100‌

95‌

3.50%,

01/01/2041

372‌

348‌

3.50%,

03/01/2041

500‌

467‌

3.50%,

10/01/2041

43‌

41‌

3.50%,

12/01/2041

145‌

136‌

3.50%,

12/01/2041

157‌

147‌

3.50%,

01/01/2042

53‌

50‌

3.50%,

03/01/2042

47‌

44‌

3.50%,

03/01/2042

138‌

129‌

3.50%,

03/01/2042

34‌

32‌

3.50%,

05/01/2042

260‌

243‌

3.50%,

05/01/2042

43‌

40‌

3.50%,

07/01/2042

63‌

59‌

3.50%,

07/01/2042

35‌

33‌

3.50%,

10/01/2042

293‌

274‌

3.50%,

04/01/2043

100‌

93‌

3.50%,

05/01/2043

247‌

231‌

3.50%,

05/01/2043

296‌

277‌

3.50%,

05/01/2043

89‌

83‌

3.50%,

06/01/2043

251‌

234‌

3.50%,

07/01/2043

107‌

100‌

3.50%,

07/01/2043

280‌

262‌

3.50%,

08/01/2043

63‌

59‌

3.50%,

08/01/2043

197‌

184‌

3.50%,

09/01/2043

72‌

68‌

3.50%,

12/01/2043

57‌

53‌

3.50%,

01/01/2044

831‌

777‌

3.50%,

02/01/2044

62‌

58‌

3.50%,

07/01/2044

398‌

372‌

3.50%,

10/01/2044

160‌

149‌

3.50%,

10/01/2044

58‌

54‌

3.50%,

11/01/2044

163‌

152‌

3.50%,

12/01/2044

173‌

161‌

3.50%,

12/01/2044

30‌

28‌

3.50%,

12/01/2044

123‌

114‌

3.50%,

01/01/2045

185‌

172‌

3.50%,

04/01/2045

164‌

152‌

3.50%,

05/01/2045

66‌

61‌

3.50%,

07/01/2045

32‌

29‌

3.50%,

07/01/2045

184‌

171‌

3.50%,

08/01/2045

181‌

169‌

3.50%,

08/01/2045

160‌

149‌

3.50%,

09/01/2045

198‌

184‌

3.50%,

09/01/2045

250‌

232‌

3.50%,

09/01/2045

81‌

76‌

3.50%,

11/01/2045

78‌

72‌

3.50%,

11/01/2045

140‌

130‌

3.50%,

12/01/2045

269‌

250‌

3.50%,

12/01/2045

184‌

171‌

3.50%,

12/01/2045

153‌

142‌

3.50%,

01/01/2046

229‌

212‌

3.50%,

01/01/2046

292‌

271‌

3.50%,

02/01/2046

123‌

114‌

3.50%,

02/01/2046

46‌

43‌

3.50%,

03/01/2046

193‌

179‌

3.50%,

03/01/2046

161‌

150‌

3.50%,

05/01/2046

195‌

181‌

3.50%,

06/01/2046

52‌

48‌

3.50%,

07/01/2046

171‌

159‌

3.50%,

09/01/2046

160‌

149‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

164

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%,

11/01/2046

$

350‌

$

325‌

3.50%,

12/01/2046

192‌

178‌

3.50%,

01/01/2047

421‌

392‌

3.50%,

02/01/2047

311‌

289‌

3.50%,

03/01/2047

37‌

34‌

3.50%,

09/01/2047

90‌

84‌

3.50%,

11/01/2047

364‌

336‌

3.50%,

01/01/2048

358‌

331‌

3.50%,

02/01/2048

291‌

269‌

3.50%,

02/01/2048

31‌

29‌

3.50%,

03/01/2048

228‌

211‌

3.50%,

04/01/2048

145‌

134‌

3.50%,

10/01/2048

46‌

43‌

3.50%,

10/01/2048

29‌

26‌

3.50%,

04/01/2049

239‌

223‌

3.50%,

06/01/2049

443‌

408‌

3.50%,

06/01/2049

528‌

486‌

3.50%,

06/01/2049

481‌

443‌

3.50%,

07/01/2049

1,207‌

1,108‌

3.50%,

07/01/2049

1,410‌

1,300‌

3.50%,

07/01/2049

660‌

607‌

3.50%,

08/01/2049

648‌

595‌

3.50%,

09/01/2049

667‌

614‌

3.50%,

11/01/2049

1,181‌

1,089‌

3.50%,

11/01/2049

3,421‌

3,175‌

3.50%,

11/01/2049

1,244‌

1,144‌

3.50%,

05/01/2050

1,156‌

1,061‌

3.50%,

09/01/2050

1,837‌

1,716‌

3.50%,

05/01/2052

4,797‌

4,406‌

3.50%,

08/01/2052

3,997‌

3,663‌

3.50%,

01/01/2053

(j)

5,495‌

4,991‌

4.00%,

07/01/2025

35‌

34‌

4.00%,

04/01/2029

2‌

2‌

4.00%,

10/01/2030

5‌

5‌

4.00%,

12/01/2030

43‌

42‌

4.00%,

02/01/2031

15‌

14‌

4.00%,

03/01/2031

239‌

233‌

4.00%,

07/01/2031

10‌

9‌

4.00%,

10/01/2031

40‌

38‌

4.00%,

11/01/2031

9‌

9‌

4.00%,

12/01/2031

8‌

7‌

4.00%,

01/01/2032

12‌

11‌

4.00%,

09/01/2033

85‌

83‌

4.00%,

01/01/2036

78‌

75‌

4.00%,

02/01/2036

57‌

55‌

4.00%,

06/01/2036

48‌

46‌

4.00%,

01/01/2037

64‌

62‌

4.00%,

02/01/2037

139‌

134‌

4.00%,

07/01/2038

96‌

91‌

4.00%,

02/01/2039

27‌

26‌

4.00%,

10/01/2039

46‌

44‌

4.00%,

01/01/2041

156‌

150‌

4.00%,

02/01/2041

38‌

36‌

4.00%,

02/01/2041

101‌

97‌

4.00%,

09/01/2041

53‌

51‌

4.00%,

02/01/2043

53‌

51‌

4.00%,

12/01/2043

51‌

49‌

4.00%,

01/01/2044

167‌

160‌

4.00%,

06/01/2044

63‌

60‌

4.00%,

06/01/2044

130‌

124‌

4.00%,

07/01/2044

99‌

94‌

4.00%,

07/01/2044

88‌

85‌

4.00%,

09/01/2044

53‌

51‌

4.00%,

10/01/2044

149‌

141‌

4.00%,

10/01/2044

88‌

84‌

4.00%,

11/01/2044

106‌

101‌

4.00%,

12/01/2044

27‌

26‌

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%,

12/01/2044

$

124‌

$

119‌

4.00%,

01/01/2045

29‌

27‌

4.00%,

02/01/2045

124‌

119‌

4.00%,

02/01/2045

58‌

56‌

4.00%,

02/01/2045

125‌

119‌

4.00%,

07/01/2045

96‌

92‌

4.00%,

07/01/2045

73‌

70‌

4.00%,

09/01/2045

117‌

113‌

4.00%,

10/01/2045

109‌

104‌

4.00%,

10/01/2045

39‌

38‌

4.00%,

11/01/2045

48‌

46‌

4.00%,

11/01/2045

180‌

172‌

4.00%,

12/01/2045

48‌

46‌

4.00%,

12/01/2045

63‌

60‌

4.00%,

01/01/2046

199‌

190‌

4.00%,

02/01/2046

36‌

35‌

4.00%,

02/01/2046

178‌

170‌

4.00%,

03/01/2046

42‌

40‌

4.00%,

03/01/2046

60‌

58‌

4.00%,

04/01/2046

92‌

88‌

4.00%,

07/01/2046

163‌

156‌

4.00%,

04/01/2047

250‌

239‌

4.00%,

06/01/2047

180‌

172‌

4.00%,

08/01/2047

38‌

36‌

4.00%,

08/01/2047

266‌

254‌

4.00%,

08/01/2047

128‌

123‌

4.00%,

08/01/2047

213‌

204‌

4.00%,

09/01/2047

245‌

234‌

4.00%,

11/01/2047

474‌

454‌

4.00%,

01/01/2048

384‌

367‌

4.00%,

02/01/2048

175‌

166‌

4.00%,

03/01/2048

84‌

80‌

4.00%,

03/01/2048

3,385‌

3,253‌

4.00%,

05/01/2048

512‌

492‌

4.00%,

06/01/2048

139‌

132‌

4.00%,

06/01/2048

359‌

343‌

4.00%,

07/01/2048

103‌

98‌

4.00%,

08/01/2048

46‌

44‌

4.00%,

08/01/2048

49‌

47‌

4.00%,

09/01/2048

131‌

125‌

4.00%,

09/01/2048

202‌

193‌

4.00%,

01/01/2049

2,013‌

1,922‌

4.00%,

01/01/2049

1,123‌

1,071‌

4.00%,

03/01/2049

155‌

148‌

4.00%,

04/01/2049

280‌

267‌

4.00%,

04/01/2049

200‌

190‌

4.00%,

07/01/2049

947‌

898‌

4.00%,

08/01/2049

639‌

607‌

4.00%,

10/01/2049

330‌

313‌

4.00%,

10/01/2049

457‌

436‌

4.00%,

11/01/2049

411‌

391‌

4.00%,

04/01/2050

1,902‌

1,801‌

4.00%,

08/01/2052

7,160‌

6,753‌

4.00%,

01/01/2053

(j)

5,915‌

5,546‌

4.50%,

07/01/2029

1‌

1‌

4.50%,

02/01/2030

4‌

4‌

4.50%,

04/01/2030

1‌

1‌

4.50%,

08/01/2030

28‌

28‌

4.50%,

09/01/2030

24‌

24‌

4.50%,

01/01/2031

5‌

5‌

4.50%,

04/01/2031

3‌

3‌

4.50%,

05/01/2031

5‌

5‌

4.50%,

07/01/2031

20‌

20‌

4.50%,

08/01/2031

11‌

11‌

4.50%,

02/01/2035

47‌

46‌

4.50%,

08/01/2040

35‌

34‌

4.50%,

08/01/2040

112‌

111‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

165

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%,

06/01/2041

$

55‌

$

55‌

4.50%,

09/01/2041

89‌

88‌

4.50%,

09/01/2043

40‌

39‌

4.50%,

10/01/2043

84‌

83‌

4.50%,

01/01/2044

161‌

158‌

4.50%,

01/01/2044

186‌

182‌

4.50%,

02/01/2044

109‌

107‌

4.50%,

03/01/2044

59‌

58‌

4.50%,

03/01/2044

53‌

51‌

4.50%,

05/01/2044

188‌

185‌

4.50%,

05/01/2044

43‌

43‌

4.50%,

05/01/2044

55‌

54‌

4.50%,

06/01/2044

98‌

96‌

4.50%,

08/01/2044

76‌

75‌

4.50%,

08/01/2044

71‌

69‌

4.50%,

12/01/2044

226‌

222‌

4.50%,

04/01/2046

64‌

62‌

4.50%,

08/01/2046

56‌

55‌

4.50%,

01/01/2047

56‌

55‌

4.50%,

02/01/2047

91‌

89‌

4.50%,

02/01/2047

31‌

30‌

4.50%,

03/01/2047

66‌

64‌

4.50%,

10/01/2047

64‌

63‌

4.50%,

11/01/2047

128‌

126‌

4.50%,

02/01/2048

95‌

93‌

4.50%,

04/01/2048

276‌

271‌

4.50%,

05/01/2048

169‌

165‌

4.50%,

07/01/2048

1,940‌

1,895‌

4.50%,

08/01/2048

46‌

45‌

4.50%,

08/01/2048

44‌

43‌

4.50%,

10/01/2048

217‌

213‌

4.50%,

10/01/2048

323‌

316‌

4.50%,

12/01/2048

944‌

933‌

4.50%,

03/01/2049

2,158‌

2,114‌

4.50%,

04/01/2049

186‌

182‌

4.50%,

05/01/2049

1,538‌

1,504‌

4.50%,

07/01/2049

310‌

303‌

4.50%,

07/01/2049

588‌

574‌

4.50%,

09/01/2049

2,110‌

2,064‌

4.50%,

09/01/2049

326‌

319‌

4.50%,

10/01/2052

2,479‌

2,405‌

4.50%,

01/01/2053

(j)

5,150‌

4,956‌

5.00%,

07/01/2024

1‌

1‌

5.00%,

04/01/2029

3‌

3‌

5.00%,

09/01/2029

45‌

46‌

5.00%,

03/01/2030

6‌

6‌

5.00%,

08/01/2030

7‌

7‌

5.00%,

07/01/2035

68‌

70‌

5.00%,

04/01/2037

94‌

95‌

5.00%,

01/01/2039

135‌

136‌

5.00%,

07/01/2039

61‌

62‌

5.00%,

07/01/2039

55‌

56‌

5.00%,

02/01/2041

58‌

59‌

5.00%,

02/01/2041

104‌

106‌

5.00%,

05/01/2042

145‌

147‌

5.00%,

03/01/2044

78‌

79‌

5.00%,

03/01/2044

47‌

47‌

5.00%,

05/01/2044

48‌

48‌

5.00%,

11/01/2044

97‌

98‌

5.00%,

04/01/2048

67‌

66‌

5.00%,

09/01/2048

557‌

554‌

5.00%,

05/01/2049

44‌

44‌

5.00%,

06/01/2049

388‌

388‌

5.00%,

07/01/2049

219‌

219‌

5.00%,

08/01/2049

234‌

234‌

5.00%,

01/01/2053

(j)

9,225‌

9,089‌

5.50%,

08/01/2023

1‌

1‌

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%,

10/01/2023

$

3‌

$

3‌

5.50%,

11/01/2023

5‌

5‌

5.50%,

02/01/2026

14‌

14‌

5.50%,

03/01/2027

16‌

16‌

5.50%,

06/01/2028

2‌

2‌

5.50%,

09/01/2028

1‌

1‌

5.50%,

01/01/2029

1‌

1‌

5.50%,

01/01/2029

6‌

6‌

5.50%,

12/01/2029

5‌

5‌

5.50%,

11/01/2035

116‌

120‌

5.50%,

12/01/2036

49‌

51‌

5.50%,

03/01/2037

73‌

76‌

5.50%,

08/01/2037

53‌

55‌

5.50%,

08/01/2037

65‌

67‌

5.50%,

08/01/2037

50‌

52‌

5.50%,

05/01/2038

96‌

99‌

5.50%,

06/01/2038

42‌

43‌

5.50%,

01/01/2053

(j)

4,975‌

4,987‌

6.00%,

05/01/2041

87‌

91‌

6.00%,

01/01/2053

(j)

1,900‌

1,928‌

6.50%,

01/01/2038

39‌

41‌

$

465,747‌

Government

National

Mortgage

Association

(GNMA)

-

6.10%

2.00%,

08/20/2050

6,689‌

5,652‌

2.00%,

01/20/2051

7,650‌

6,450‌

2.00%,

02/20/2051

19,428‌

16,285‌

2.00%,

05/20/2051

5,243‌

4,416‌

2.50%,

03/20/2028

34‌

32‌

2.50%,

07/20/2028

37‌

35‌

2.50%,

03/20/2031

45‌

42‌

2.50%,

05/20/2032

55‌

51‌

2.50%,

07/20/2043

91‌

80‌

2.50%,

06/20/2045

51‌

45‌

2.50%,

12/20/2046

105‌

92‌

2.50%,

01/20/2047

156‌

138‌

2.50%,

06/20/2050

13,265‌

11,587‌

2.50%,

05/20/2051

8,844‌

7,689‌

2.50%,

07/20/2051

3,206‌

2,784‌

2.50%,

09/20/2051

11,830‌

10,268‌

3.00%,

07/20/2030

73‌

70‌

3.00%,

01/20/2031

47‌

45‌

3.00%,

07/20/2032

54‌

51‌

3.00%,

01/20/2033

25‌

24‌

3.00%,

09/20/2042

553‌

505‌

3.00%,

10/15/2042

89‌

81‌

3.00%,

12/20/2042

156‌

143‌

3.00%,

01/20/2043

217‌

198‌

3.00%,

03/20/2043

114‌

105‌

3.00%,

03/20/2043

289‌

263‌

3.00%,

04/20/2043

373‌

341‌

3.00%,

06/15/2043

134‌

123‌

3.00%,

06/20/2043

81‌

74‌

3.00%,

07/15/2043

35‌

32‌

3.00%,

08/15/2043

67‌

61‌

3.00%,

08/15/2043

66‌

60‌

3.00%,

08/20/2043

38‌

35‌

3.00%,

09/20/2043

149‌

136‌

3.00%,

10/20/2043

78‌

71‌

3.00%,

11/20/2043

59‌

53‌

3.00%,

03/20/2044

119‌

109‌

3.00%,

08/20/2044

437‌

399‌

3.00%,

11/15/2044

216‌

193‌

3.00%,

11/20/2044

144‌

131‌

3.00%,

12/20/2044

142‌

130‌

3.00%,

02/15/2045

151‌

135‌

3.00%,

05/20/2045

125‌

114‌

3.00%,

07/15/2045

61‌

54‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

166

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Government

National

Mortgage

Association

(GNMA)

(continued)

3.00%,

07/20/2045

$

979‌

$

892‌

3.00%,

08/15/2045

150‌

134‌

3.00%,

08/20/2045

311‌

283‌

3.00%,

10/20/2045

270‌

245‌

3.00%,

11/20/2045

159‌

145‌

3.00%,

12/20/2045

221‌

201‌

3.00%,

01/20/2046

55‌

50‌

3.00%,

02/20/2046

73‌

67‌

3.00%,

03/20/2046

347‌

315‌

3.00%,

04/20/2046

225‌

205‌

3.00%,

05/20/2046

207‌

188‌

3.00%,

06/20/2046

312‌

283‌

3.00%,

07/20/2046

932‌

844‌

3.00%,

08/20/2046

639‌

578‌

3.00%,

09/20/2046

373‌

338‌

3.00%,

10/20/2046

247‌

223‌

3.00%,

11/20/2046

378‌

342‌

3.00%,

11/20/2046

181‌

162‌

3.00%,

12/20/2046

463‌

419‌

3.00%,

01/20/2047

306‌

276‌

3.00%,

07/20/2047

14‌

13‌

3.00%,

10/20/2047

315‌

284‌

3.00%,

11/20/2047

149‌

135‌

3.00%,

12/20/2047

496‌

446‌

3.00%,

01/20/2048

212‌

192‌

3.00%,

02/20/2048

225‌

203‌

3.00%,

03/20/2048

210‌

189‌

3.00%,

11/20/2049

7,800‌

7,014‌

3.00%,

09/20/2051

8,847‌

7,915‌

3.50%,

09/20/2028

45‌

44‌

3.50%,

04/20/2042

360‌

339‌

3.50%,

05/20/2042

381‌

359‌

3.50%,

06/20/2042

107‌

100‌

3.50%,

07/20/2042

424‌

400‌

3.50%,

10/20/2042

257‌

242‌

3.50%,

01/15/2043

106‌

99‌

3.50%,

01/20/2043

138‌

130‌

3.50%,

02/20/2043

418‌

394‌

3.50%,

03/20/2043

394‌

372‌

3.50%,

03/20/2043

187‌

173‌

3.50%,

04/15/2043

49‌

46‌

3.50%,

04/20/2043

269‌

251‌

3.50%,

04/20/2043

383‌

360‌

3.50%,

07/20/2043

457‌

430‌

3.50%,

08/15/2043

36‌

34‌

3.50%,

08/20/2043

349‌

329‌

3.50%,

09/20/2043

232‌

219‌

3.50%,

07/20/2044

249‌

232‌

3.50%,

08/20/2044

264‌

247‌

3.50%,

09/20/2044

99‌

92‌

3.50%,

10/20/2044

105‌

98‌

3.50%,

11/20/2044

111‌

104‌

3.50%,

12/20/2044

124‌

116‌

3.50%,

02/20/2045

123‌

114‌

3.50%,

05/20/2045

159‌

148‌

3.50%,

06/20/2045

33‌

31‌

3.50%,

07/20/2045

237‌

221‌

3.50%,

08/20/2045

111‌

104‌

3.50%,

09/20/2045

59‌

55‌

3.50%,

10/20/2045

438‌

408‌

3.50%,

11/20/2045

360‌

335‌

3.50%,

12/20/2045

229‌

212‌

3.50%,

01/20/2046

568‌

530‌

3.50%,

02/20/2046

31‌

29‌

3.50%,

03/20/2046

2,894‌

2,698‌

3.50%,

04/20/2046

225‌

209‌

3.50%,

05/20/2046

304‌

284‌

3.50%,

06/20/2046

1,317‌

1,229‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Government

National

Mortgage

Association

(GNMA)

(continued)

3.50%,

07/15/2046

$

32‌

$

30‌

3.50%,

07/20/2046

157‌

146‌

3.50%,

08/20/2046

703‌

656‌

3.50%,

09/20/2046

291‌

273‌

3.50%,

10/20/2046

348‌

325‌

3.50%,

11/20/2046

265‌

246‌

3.50%,

12/20/2046

296‌

276‌

3.50%,

01/20/2047

295‌

275‌

3.50%,

02/20/2047

174‌

162‌

3.50%,

03/20/2047

231‌

215‌

3.50%,

04/20/2047

555‌

516‌

3.50%,

05/20/2047

167‌

156‌

3.50%,

06/20/2047

254‌

237‌

3.50%,

07/20/2047

463‌

432‌

3.50%,

08/20/2047

731‌

682‌

3.50%,

09/20/2047

53‌

50‌

3.50%,

10/20/2047

179‌

167‌

3.50%,

11/20/2047

235‌

219‌

3.50%,

12/20/2047

267‌

249‌

3.50%,

01/20/2048

375‌

351‌

3.50%,

02/20/2048

59‌

55‌

3.50%,

07/20/2048

117‌

109‌

3.50%,

01/01/2053

(j)

3,000‌

2,756‌

4.00%,

08/15/2040

32‌

31‌

4.00%,

12/20/2040

17‌

17‌

4.00%,

08/15/2041

27‌

27‌

4.00%,

11/15/2041

47‌

45‌

4.00%,

03/15/2042

27‌

27‌

4.00%,

03/20/2042

74‌

72‌

4.00%,

04/20/2042

65‌

63‌

4.00%,

05/15/2042

90‌

87‌

4.00%,

10/20/2043

35‌

34‌

4.00%,

11/20/2043

82‌

79‌

4.00%,

02/20/2044

197‌

189‌

4.00%,

03/15/2044

66‌

64‌

4.00%,

05/20/2044

126‌

121‌

4.00%,

06/20/2044

94‌

91‌

4.00%,

07/20/2044

380‌

366‌

4.00%,

08/20/2044

273‌

263‌

4.00%,

09/20/2044

248‌

239‌

4.00%,

10/20/2044

327‌

314‌

4.00%,

11/20/2044

144‌

139‌

4.00%,

12/20/2044

264‌

254‌

4.00%,

01/20/2045

224‌

215‌

4.00%,

04/20/2045

140‌

135‌

4.00%,

05/15/2045

89‌

85‌

4.00%,

07/20/2045

52‌

50‌

4.00%,

08/20/2045

132‌

128‌

4.00%,

09/20/2045

187‌

180‌

4.00%,

10/20/2045

101‌

97‌

4.00%,

11/20/2045

37‌

35‌

4.00%,

12/15/2045

41‌

40‌

4.00%,

12/20/2045

94‌

90‌

4.00%,

01/20/2046

58‌

56‌

4.00%,

02/20/2046

85‌

82‌

4.00%,

04/20/2046

138‌

132‌

4.00%,

05/20/2046

69‌

66‌

4.00%,

07/20/2046

144‌

139‌

4.00%,

01/20/2047

277‌

266‌

4.00%,

02/20/2047

215‌

206‌

4.00%,

03/20/2047

198‌

190‌

4.00%,

05/20/2047

264‌

253‌

4.00%,

06/20/2047

268‌

257‌

4.00%,

07/20/2047

643‌

617‌

4.00%,

08/20/2047

31‌

30‌

4.00%,

09/20/2047

2,017‌

1,942‌

4.00%,

10/20/2047

147‌

141‌

4.00%,

01/01/2053

(j)

7,250‌

6,859‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

167

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Government

National

Mortgage

Association

(GNMA)

(continued)

4.50%,

02/15/2039

$

69‌

$

68‌

4.50%,

05/15/2039

49‌

48‌

4.50%,

11/15/2039

178‌

177‌

4.50%,

04/15/2040

134‌

133‌

4.50%,

01/20/2041

21‌

21‌

4.50%,

02/20/2041

20‌

20‌

4.50%,

03/20/2041

16‌

15‌

4.50%,

07/15/2041

42‌

42‌

4.50%,

05/20/2043

62‌

62‌

4.50%,

06/20/2043

69‌

69‌

4.50%,

10/20/2043

56‌

56‌

4.50%,

11/20/2043

181‌

182‌

4.50%,

03/20/2044

261‌

260‌

4.50%,

04/20/2044

11‌

12‌

4.50%,

05/20/2044

191‌

192‌

4.50%,

07/20/2044

99‌

99‌

4.50%,

12/20/2044

41‌

41‌

4.50%,

02/20/2045

107‌

108‌

4.50%,

03/20/2045

46‌

46‌

4.50%,

04/20/2045

56‌

57‌

4.50%,

06/20/2046

55‌

55‌

4.50%,

12/20/2046

165‌

166‌

4.50%,

02/20/2047

95‌

94‌

4.50%,

04/20/2047

63‌

63‌

4.50%,

06/15/2047

44‌

44‌

4.50%,

08/20/2047

132‌

130‌

4.50%,

10/20/2047

62‌

61‌

4.50%,

02/20/2048

1,004‌

988‌

4.50%,

05/20/2048

721‌

710‌

4.50%,

08/20/2048

182‌

179‌

4.50%,

10/20/2048

108‌

106‌

4.50%,

11/20/2048

166‌

163‌

4.50%,

12/20/2048

48‌

47‌

4.50%,

01/01/2053

(j)

5,000‌

4,850‌

5.00%,

07/15/2035

44‌

44‌

5.00%,

04/15/2041

98‌

99‌

5.00%,

08/20/2041

43‌

44‌

5.00%,

04/20/2042

34‌

35‌

5.00%,

12/20/2042

97‌

99‌

5.00%,

07/20/2043

58‌

59‌

5.00%,

02/20/2044

61‌

62‌

5.00%,

03/20/2044

37‌

37‌

5.00%,

12/20/2045

55‌

56‌

5.00%,

03/20/2048

43‌

43‌

5.00%,

06/20/2048

815‌

814‌

5.00%,

10/20/2048

54‌

54‌

5.00%,

01/01/2053

(j)

1,550‌

1,536‌

5.50%,

01/15/2040

48‌

50‌

5.50%,

06/20/2040

25‌

26‌

5.50%,

01/20/2041

108‌

112‌

5.50%,

10/20/2042

42‌

44‌

5.50%,

09/20/2043

49‌

51‌

6.00%,

04/15/2035

7‌

7‌

$

139,812‌

U.S.

Treasury

-

40.45%

0.13%,

01/15/2024

9,930‌

9,468‌

0.25%,

03/15/2024

3,325‌

3,152‌

0.25%,

05/15/2024

8,055‌

7,581‌

0.25%,

06/15/2024

8,105‌

7,607‌

0.25%,

05/31/2025

2,360‌

2,142‌

0.25%,

06/30/2025

7,025‌

6,364‌

0.25%,

07/31/2025

10,330‌

9,322‌

0.25%,

08/31/2025

9,680‌

8,704‌

0.25%,

09/30/2025

12,000‌

10,775‌

0.25%,

10/31/2025

2,345‌

2,097‌

0.38%,

08/15/2024

10,480‌

9,791‌

0.38%,

09/15/2024

1,060‌

988‌

0.38%,

04/30/2025

8,100‌

7,392‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

(continued)

0.38%,

11/30/2025

$

4,675‌

$

4,182‌

0.38%,

01/31/2026

2,475‌

2,202‌

0.38%,

07/31/2027

8,175‌

6,935‌

0.38%,

09/30/2027

3,705‌

3,123‌

0.50%,

03/31/2025

4,250‌

3,903‌

0.50%,

02/28/2026

9,240‌

8,233‌

0.50%,

04/30/2027

2,100‌

1,808‌

0.50%,

05/31/2027

3,290‌

2,821‌

0.50%,

06/30/2027

4,645‌

3,973‌

0.50%,

08/31/2027

5,260‌

4,477‌

0.50%,

10/31/2027

5,060‌

4,280‌

0.63%,

07/31/2026

4,210‌

3,720‌

0.63%,

03/31/2027

5,975‌

5,185‌

0.63%,

11/30/2027

4,645‌

3,944‌

0.63%,

12/31/2027

8,210‌

6,955‌

0.63%,

05/15/2030

10,135‌

8,021‌

0.63%,

08/15/2030

10,525‌

8,285‌

0.75%,

11/15/2024

7,445‌

6,949‌

0.75%,

03/31/2026

8,220‌

7,367‌

0.75%,

04/30/2026

2,800‌

2,503‌

0.75%,

05/31/2026

5,825‌

5,195‌

0.75%,

08/31/2026

3,050‌

2,701‌

0.75%,

01/31/2028

10,270‌

8,733‌

0.88%,

01/31/2024

1,975‌

1,895‌

0.88%,

06/30/2026

4,900‌

4,382‌

0.88%,

09/30/2026

2,620‌

2,326‌

0.88%,

11/15/2030

8,185‌

6,542‌

1.00%,

07/31/2028

5,165‌

4,390‌

1.13%,

02/28/2025

8,950‌

8,355‌

1.13%,

10/31/2026

3,635‌

3,251‌

1.13%,

02/28/2027

2,670‌

2,374‌

1.13%,

02/29/2028

9,595‌

8,308‌

1.13%,

08/31/2028

6,155‌

5,255‌

1.13%,

02/15/2031

10,685‌

8,709‌

1.13%,

05/15/2040

3,760‌

2,353‌

1.13%,

08/15/2040

3,925‌

2,437‌

1.25%,

08/31/2024

7,600‌

7,195‌

1.25%,

11/30/2026

3,875‌

3,477‌

1.25%,

12/31/2026

3,175‌

2,843‌

1.25%,

03/31/2028

7,125‌

6,193‌

1.25%,

04/30/2028

7,750‌

6,725‌

1.25%,

06/30/2028

4,550‌

3,934‌

1.25%,

09/30/2028

5,680‌

4,878‌

1.25%,

08/15/2031

11,020‌

8,936‌

1.25%,

05/15/2050

6,230‌

3,353‌

1.38%,

08/31/2026

3,400‌

3,082‌

1.38%,

10/31/2028

4,050‌

3,496‌

1.38%,

12/31/2028

8,310‌

7,167‌

1.38%,

11/15/2031

9,140‌

7,439‌

1.38%,

11/15/2040

6,065‌

3,943‌

1.38%,

08/15/2050

5,155‌

2,864‌

1.50%,

09/30/2024

5,950‌

5,650‌

1.50%,

10/31/2024

1,000‌

947‌

1.50%,

11/30/2024

7,880‌

7,456‌

1.50%,

08/15/2026

3,115‌

2,839‌

1.50%,

01/31/2027

5,200‌

4,695‌

1.50%,

11/30/2028

6,695‌

5,814‌

1.50%,

02/15/2030

5,660‌

4,823‌

1.63%,

02/15/2026

3,315‌

3,066‌

1.63%,

05/15/2026

3,345‌

3,079‌

1.63%,

09/30/2026

1,265‌

1,157‌

1.63%,

11/30/2026

1,500‌

1,368‌

1.63%,

08/15/2029

3,750‌

3,254‌

1.63%,

05/15/2031

10,330‌

8,687‌

1.63%,

11/15/2050

6,050‌

3,600‌

1.75%,

06/30/2024

3,970‌

3,804‌

1.75%,

12/31/2024

5,620‌

5,335‌

1.75%,

01/31/2029

4,390‌

3,856‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

168

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

(continued)

1.75%,

11/15/2029

$

6,200‌

$

5,405‌

1.75%,

08/15/2041

6,835‌

4,677‌

1.88%,

07/31/2026

7,400‌

6,844‌

1.88%,

02/28/2027

3,220‌

2,949‌

1.88%,

02/28/2029

3,180‌

2,816‌

1.88%,

02/15/2032

8,390‌

7,117‌

1.88%,

02/15/2041

7,345‌

5,191‌

1.88%,

02/15/2051

7,680‌

4,881‌

1.88%,

11/15/2051

7,155‌

4,532‌

2.00%,

04/30/2024

4,035‌

3,893‌

2.00%,

05/31/2024

6,765‌

6,518‌

2.00%,

06/30/2024

5,195‌

4,996‌

2.00%,

02/15/2025

8,570‌

8,154‌

2.00%,

08/15/2025

4,850‌

4,580‌

2.00%,

11/15/2026

9,295‌

8,594‌

2.00%,

11/15/2041

5,650‌

4,034‌

2.00%,

02/15/2050

4,735‌

3,127‌

2.00%,

08/15/2051

6,555‌

4,292‌

2.13%,

03/31/2024

3,525‌

3,415‌

2.13%,

07/31/2024

5,580‌

5,367‌

2.13%,

09/30/2024

4,770‌

4,578‌

2.13%,

11/30/2024

4,460‌

4,269‌

2.13%,

05/15/2025

2,880‌

2,737‌

2.13%,

05/31/2026

2,520‌

2,358‌

2.25%,

01/31/2024

1,475‌

1,436‌

2.25%,

03/31/2024

2,860‌

2,775‌

2.25%,

04/30/2024

6,700‌

6,487‌

2.25%,

10/31/2024

3,336‌

3,204‌

2.25%,

11/15/2024

8,963‌

8,608‌

2.25%,

12/31/2024

3,000‌

2,875‌

2.25%,

11/15/2025

4,080‌

3,862‌

2.25%,

03/31/2026

5,000‌

4,712‌

2.25%,

02/15/2027

8,160‌

7,594‌

2.25%,

08/15/2027

5,535‌

5,120‌

2.25%,

11/15/2027

8,485‌

7,819‌

2.25%,

05/15/2041

4,845‌

3,642‌

2.25%,

08/15/2046

3,195‌

2,261‌

2.25%,

08/15/2049

8,610‌

6,053‌

2.25%,

02/15/2052

6,580‌

4,576‌

2.38%,

02/29/2024

4,635‌

4,514‌

2.38%,

08/15/2024

4,595‌

4,433‌

2.38%,

04/30/2026

5,000‌

4,723‌

2.38%,

05/15/2027

8,780‌

8,186‌

2.38%,

03/31/2029

4,020‌

3,655‌

2.38%,

05/15/2029

4,795‌

4,359‌

2.38%,

02/15/2042

1,865‌

1,424‌

2.38%,

11/15/2049

3,960‌

2,862‌

2.38%,

05/15/2051

4,315‌

3,096‌

2.50%,

01/31/2024

12,700‌

12,400‌

2.50%,

04/30/2024

5,725‌

5,562‌

2.50%,

05/15/2024

3,066‌

2,976‌

2.50%,

05/31/2024

3,220‌

3,124‌

2.50%,

01/31/2025

3,300‌

3,175‌

2.50%,

03/31/2027

4,305‌

4,040‌

2.50%,

02/15/2045

3,450‌

2,597‌

2.50%,

02/15/2046

2,925‌

2,188‌

2.50%,

05/15/2046

2,520‌

1,880‌

2.63%,

03/31/2025

1,805‌

1,739‌

2.63%,

12/31/2025

5,000‌

4,781‌

2.63%,

02/15/2029

8,305‌

7,676‌

2.63%,

07/31/2029

2,325‌

2,141‌

2.75%,

02/15/2024

5,336‌

5,221‌

2.75%,

02/28/2025

8,615‌

8,324‌

2.75%,

06/30/2025

1,280‌

1,233‌

2.75%,

08/31/2025

5,225‌

5,022‌

2.75%,

04/30/2027

3,660‌

3,468‌

2.75%,

02/15/2028

5,775‌

5,430‌

2.75%,

08/15/2032

7,785‌

7,089‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

(continued)

2.75%,

08/15/2042

$

1,591‌

$

1,279‌

2.75%,

11/15/2042

2,610‌

2,092‌

2.75%,

08/15/2047

3,060‌

2,387‌

2.75%,

11/15/2047

3,405‌

2,656‌

2.88%,

05/31/2025

4,120‌

3,983‌

2.88%,

06/15/2025

17,035‌

16,465‌

2.88%,

07/31/2025

2,000‌

1,932‌

2.88%,

11/30/2025

3,435‌

3,305‌

2.88%,

05/15/2028

4,400‌

4,152‌

2.88%,

08/15/2028

5,825‌

5,485‌

2.88%,

04/30/2029

6,595‌

6,177‌

2.88%,

05/15/2032

6,240‌

5,751‌

2.88%,

05/15/2043

3,773‌

3,080‌

2.88%,

08/15/2045

2,145‌

1,727‌

2.88%,

11/15/2046

1,565‌

1,254‌

2.88%,

05/15/2049

4,615‌

3,713‌

2.88%,

05/15/2052

5,525‌

4,427‌

3.00%,

07/15/2025

100‌

97‌

3.00%,

09/30/2025

2,775‌

2,682‌

3.00%,

10/31/2025

4,500‌

4,346‌

3.00%,

05/15/2042

1,200‌

1,009‌

3.00%,

11/15/2044

2,375‌

1,960‌

3.00%,

05/15/2045

1,845‌

1,520‌

3.00%,

11/15/2045

1,320‌

1,086‌

3.00%,

02/15/2047

3,115‌

2,550‌

3.00%,

05/15/2047

2,150‌

1,759‌

3.00%,

02/15/2048

2,990‌

2,451‌

3.00%,

08/15/2048

2,745‌

2,254‌

3.00%,

02/15/2049

4,115‌

3,389‌

3.00%,

08/15/2052

4,430‌

3,650‌

3.13%,

08/31/2027

6,040‌

5,809‌

3.13%,

11/15/2028

8,255‌

7,874‌

3.13%,

08/31/2029

4,085‌

3,878‌

3.13%,

11/15/2041

1,700‌

1,469‌

3.13%,

02/15/2042

805‌

694‌

3.13%,

02/15/2043

1,480‌

1,263‌

3.13%,

08/15/2044

3,045‌

2,573‌

3.13%,

05/15/2048

4,020‌

3,379‌

3.25%,

06/30/2029

2,055‌

1,967‌

3.25%,

05/15/2042

3,650‌

3,200‌

3.38%,

08/15/2042

3,440‌

3,074‌

3.38%,

05/15/2044

3,525‌

3,108‌

3.38%,

11/15/2048

4,715‌

4,159‌

3.50%,

09/15/2025

8,645‌

8,472‌

3.50%,

02/15/2039

1,170‌

1,099‌

3.63%,

08/15/2043

1,880‌

1,728‌

3.63%,

02/15/2044

1,755‌

1,610‌

3.75%,

08/15/2041

755‌

716‌

3.75%,

11/15/2043

1,935‌

1,814‌

3.88%,

09/30/2029

570‌

566‌

3.88%,

11/30/2029

4,885‌

4,852‌

3.88%,

08/15/2040

1,669‌

1,628‌

4.00%,

11/15/2052

2,085‌

2,088‌

4.13%,

11/15/2032

6,750‌

6,888‌

4.25%,

05/15/2039

1,190‌

1,226‌

4.25%,

11/15/2040

1,135‌

1,160‌

4.38%,

02/15/2038

1,445‌

1,513‌

4.38%,

11/15/2039

2,970‌

3,097‌

4.38%,

05/15/2040

1,489‌

1,548‌

4.38%,

05/15/2041

1,660‌

1,720‌

4.50%,

02/15/2036

1,590‌

1,697‌

4.50%,

05/15/2038

710‌

754‌

4.50%,

08/15/2039

1,235‌

1,310‌

4.63%,

02/15/2040

1,100‌

1,182‌

4.75%,

02/15/2037

660‌

721‌

5.00%,

05/15/2037

1,130‌

1,262‌

5.25%,

02/15/2029

2,000‌

2,123‌

5.38%,

02/15/2031

3,616‌

3,969‌

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2022

See

accompanying

notes.

169

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

(continued)

6.00%,

02/15/2026

$

2,000‌

$

2,103‌

6.13%,

11/15/2027

2,225‌

2,426‌

6.13%,

08/15/2029

1,000‌

1,118‌

6.25%,

05/15/2030

1,500‌

1,710‌

6.38%,

08/15/2027

1,830‌

2,003‌

6.88%,

08/15/2025

1,000‌

1,062‌

$

926,306‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

1,565,353‌

Total

Investments

$

2,334,556‌

Other

Assets

and

Liabilities

-  (1.94)%

(44,485‌)

TOTAL

NET

ASSETS

-

100.00%

$

2,290,071‌

(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

$10,230

or

0.45%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

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.

(e)

Security

or

a

portion

of

the

security

was

on

loan.  At

the

end

of

the

period,

the

value

of

these

securities

totaled

$9,858

or

0.43%

of

net

assets.

(f)

Non-income

producing

security

(g)

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.

(h)

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

$9,565

or

0.42%

of

net

assets.

(i)

Credit

support

indicates

investments

that

benefit

from

credit

enhancement

or

liquidity

support

provided

by

a

third

party

bank,

institution,

or

government

agency.

(j)

Security

was

purchased

in

a

"to-be-announced"

("TBA")

transaction.

Portfolio

Summary  (unaudited)

Sector

Percent

Government

44.37‌%

Mortgage

Securities

29.30‌%

Financial

8.43‌%

Consumer,

Non-cyclical

4.35‌%

Money

Market

Funds

3.09‌%

Communications

2.35‌%

Utilities

2.07‌%

Technology

1.89‌%

Industrial

1.84‌%

Energy

1.70‌%

Consumer,

Cyclical

1.34‌%

Basic

Materials

0.64‌%

Revenue

Bonds

0.32‌%

General

Obligation

Unlimited

0.21‌%

Insured

0.04‌%

General

Obligation

Limited

0.00‌%

Other

Assets

and

Liabilities

(1.94‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

167,025‌

$

101,295‌

$

65,730‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

285,079‌

769,126‌

1,054,205‌

—‌

$

285,079‌

$

936,151‌

$

1,155,500‌

$

65,730‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

122‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

1,374‌

—‌

—‌

—‌

$

1,496‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

170

INVESTMENT

COMPANIES

-

1.76%

Shares

Held

Value

(000's)

Money

Market

Funds

-

1.76%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

894,168‌

$

894‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

2,394,729‌

2,395‌

$

3,289‌

TOTAL

INVESTMENT

COMPANIES

$

3,289‌

BONDS

-

52.95%

Principal

Amount

(000's)

Value

(000's)

Aerospace

&

Defense

-

2.05%

Boeing

Co/The

1.95%,

02/01/2024

$

1,370‌

$

1,320‌

2.20%,

02/04/2026

635‌

577‌

3.10%,

05/01/2026

190‌

179‌

3.75%,

02/01/2050

200‌

137‌

4.88%,

05/01/2025

380‌

377‌

Bombardier

Inc

7.13%,

06/15/2026

(d)

25‌

24‌

7.50%,

03/15/2025

(d)

34‌

34‌

Lockheed

Martin

Corp

5.70%,

11/15/2054

150‌

157‌

Raytheon

Technologies

Corp

4.13%,

11/16/2028

600‌

574‌

TransDigm

Inc

4.88%,

05/01/2029

55‌

48‌

6.25%,

03/15/2026

(d)

40‌

40‌

7.50%,

03/15/2027

151‌

149‌

8.00%,

12/15/2025

(d)

55‌

56‌

Triumph

Group

Inc

8.88%,

06/01/2024

(d)

162‌

165‌

$

3,837‌

Agriculture

-

0.27%

BAT

Capital

Corp

4.54%,

08/15/2047

120‌

85‌

Cargill

Inc

4.88%,

10/10/2025

(d)

265‌

264‌

Reynolds

American

Inc

5.70%,

08/15/2035

165‌

149‌

$

498‌

Airlines

-

0.38%

American

Airlines

2021-1

Class

B

Pass

Through

Trust

3.95%,

01/11/2032

10‌

8‌

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd

5.75%,

04/20/2029

(d)

20‌

18‌

Delta

Air

Lines

Inc

/

SkyMiles

IP

Ltd

4.50%,

10/20/2025

(d)

252‌

246‌

Hawaiian

Brand

Intellectual

Property

Ltd

/

HawaiianMiles

Loyalty

Ltd

5.75%,

01/20/2026

(d)

165‌

149‌

Southwest

Airlines

Co

5.25%,

05/04/2025

255‌

256‌

United

Airlines

Inc

4.38%,

04/15/2026

(d)

40‌

37‌

$

714‌

Automobile

Asset

Backed

Securities

-

4.00%

Ally

Auto

Receivables

Trust

2022-2

4.62%,

10/15/2025

970‌

966‌

AmeriCredit

Automobile

Receivables

Trust

2022-2

4.96%,

12/18/2025

854‌

855‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

1.15%

Capital

One

Prime

Auto

Receivables

Trust

2021-1

0.32%,

02/18/2025

237‌

234‌

Capital

One

Prime

Auto

Receivables

Trust

2022-1

2.71%,

06/16/2025

517‌

510‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Automobile

Asset

Backed

Securities

(continued)

Carmax

Auto

Owner

Trust

2020-1

1.89%,

12/16/2024

$

326‌

$

323‌

CarMax

Auto

Owner

Trust

2021-4

0.24%,

11/15/2024

85‌

84‌

CarMax

Auto

Owner

Trust

2022-1

0.91%,

02/18/2025

267‌

264‌

Carvana

Auto

Receivables

Trust

2021-P3

0.38%,

01/10/2025

85‌

84‌

Carvana

Auto

Receivables

Trust

2021-P4

0.82%,

04/10/2025

168‌

166‌

Ford

Credit

Auto

Owner

Trust

2022-C

4.33%,

04/15/2025

730‌

731‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

0.52%

GM

Financial

Consumer

Automobile

Receivables

Trust

2021-4

0.28%,

11/18/2024

171‌

169‌

Hyundai

Auto

Lease

Securitization

Trust

2022-B

4.43%,

10/15/2024

(d)

342‌

342‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

0.62%

Nissan

Auto

Lease

Trust

2021-A

0.30%,

12/15/2023

131‌

131‌

Nissan

Auto

Receivables

2022-B

Owner

Trust

4.50%,

08/15/2025

545‌

542‌

Santander

Drive

Auto

Receivables

Trust

2022-3

2.76%,

03/17/2025

288‌

286‌

Santander

Drive

Auto

Receivables

Trust

2022-6

4.37%,

05/15/2025

635‌

632‌

Santander

Drive

Auto

Receivables

Trust

2022-7

5.81%,

01/15/2026

455‌

456‌

Toyota

Auto

Receivables

2022-B

Owner

Trust

4.30%,

01/15/2025

358‌

358‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

0.49%

World

Omni

Auto

Receivables

Trust

2021-A

0.30%,

01/15/2026

323‌

311‌

World

Omni

Select

Auto

Trust

2021-A

0.29%,

02/18/2025

30‌

30‌

$

7,474‌

Automobile

Manufacturers

-

1.25%

Ford

Motor

Credit

Co

LLC

3.38%,

11/13/2025

320‌

289‌

General

Motors

Co

4.88%,

10/02/2023

665‌

663‌

General

Motors

Financial

Co

Inc

1.20%,

10/15/2024

170‌

158‌

1.25%,

01/08/2026

375‌

330‌

Mercedes-Benz

Finance

North

America

LLC

5.50%,

11/27/2024

(d)

900‌

905‌

$

2,345‌

Automobile

Parts

&

Equipment

-

0.03%

Dana

Inc

5.38%,

11/15/2027

55‌

51‌

Banks

-

9.24%

Bank

of

America

Corp

1.66%,

03/11/2027

(e)

350‌

310‌

Secured

Overnight

Financing

Rate

+

0.91%

2.48%,

09/21/2036

(e)

900‌

661‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.20%

2.68%,

06/19/2041

(e)

680‌

457‌

Secured

Overnight

Financing

Rate

+

1.93%

2.69%,

04/22/2032

(e)

235‌

188‌

Secured

Overnight

Financing

Rate

+

1.32%

3.85%,

03/08/2037

(e)

50‌

41‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.00%

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

171

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Bank

of

America

Corp  

(continued)

4.18%,

11/25/2027

$

350‌

$

332‌

4.20%,

08/26/2024

220‌

217‌

4.83%,

07/22/2026

(e)

250‌

247‌

Secured

Overnight

Financing

Rate

+

1.75%

Barclays

PLC

2.28%,

11/24/2027

(e)

200‌

173‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.05%

2.85%,

05/07/2026

(e)

600‌

558‌

Secured

Overnight

Financing

Rate

+

2.71%

7.75%,

09/15/2023

(e),(f),(g)

200‌

195‌

USD

Swap

Semi-Annual

5

Year

+

4.84%

BNP

Paribas

SA

2.22%,

06/09/2026

(d),(e)

400‌

367‌

Secured

Overnight

Financing

Rate

+

2.07%

Citigroup

Inc

3.11%,

04/08/2026

(e)

495‌

469‌

Secured

Overnight

Financing

Rate

+

2.84%

3.79%,

03/17/2033

(e)

415‌

355‌

Secured

Overnight

Financing

Rate

+

1.94%

5.61%,

09/29/2026

(e)

380‌

382‌

Secured

Overnight

Financing

Rate

+

1.55%

6.27%,

11/17/2033

(e)

350‌

361‌

Secured

Overnight

Financing

Rate

+

2.34%

Credit

Suisse

AG/New

York

NY

2.95%,

04/09/2025

665‌

598‌

Credit

Suisse

Group

AG

2.19%,

06/05/2026

(d),(e)

500‌

427‌

Secured

Overnight

Financing

Rate

+

2.04%

5.25%,

02/11/2027

(d),(e),(f),(g)

205‌

133‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.89%

9.02%,

11/15/2033

(d),(e)

250‌

256‌

Secured

Overnight

Financing

Rate

+

5.02%

DBS

Group

Holdings

Ltd

4.52%,

12/11/2028

(d),(e)

315‌

312‌

USD

Swap

Rate

NY

5

Year

+

1.59%

Deutsche

Bank

AG/New

York

NY

2.22%,

09/18/2024

(e)

375‌

362‌

Secured

Overnight

Financing

Rate

+

2.16%

Goldman

Sachs

Group

Inc/The

3.10%,

02/24/2033

(e)

360‌

292‌

Secured

Overnight

Financing

Rate

+

1.41%

3.63%,

02/20/2024

250‌

246‌

3.85%,

01/26/2027

160‌

152‌

5.70%,

11/01/2024

315‌

319‌

HSBC

Holdings

PLC

4.25%,

03/14/2024

435‌

427‌

JPMorgan

Chase

&

Co

2.08%,

04/22/2026

(e)

335‌

311‌

Secured

Overnight

Financing

Rate

+

1.85%

4.60%,

02/01/2025

(e),(f)

205‌

181‌

Secured

Overnight

Financing

Rate

+

3.13%

4.91%,

07/25/2033

(e)

705‌

671‌

Secured

Overnight

Financing

Rate

+

2.08%

KeyBank

NA/Cleveland

OH

4.15%,

08/08/2025

500‌

488‌

Lloyds

Banking

Group

PLC

3.87%,

07/09/2025

(e)

850‌

823‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

3.50%

Morgan

Stanley

0.99%,

12/10/2026

(e)

1,861‌

1,631‌

Secured

Overnight

Financing

Rate

+

0.72%

2.48%,

09/16/2036

(e)

225‌

163‌

Secured

Overnight

Financing

Rate

+

1.36%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Morgan

Stanley  

(continued)

4.35%,

09/08/2026

$

800‌

$

776‌

5.00%,

11/24/2025

230‌

229‌

Santander

UK

Group

Holdings

PLC

1.09%,

03/15/2025

(e)

345‌

322‌

Secured

Overnight

Financing

Rate

+

0.79%

Standard

Chartered

PLC

2.82%,

01/30/2026

(d),(e)

535‌

497‌

3

Month

USD

LIBOR

+

1.21%

6.00%,

07/26/2025

(d),(e),(f),(g)

215‌

207‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.66%

Toronto-Dominion

Bank/The

4.69%,

09/15/2027

250‌

247‌

Truist

Financial

Corp

5.90%,

10/28/2026

(e)

180‌

184‌

Secured

Overnight

Financing

Rate

+

1.63%

UBS

Group

AG

4.75%,

05/12/2028

(d),(e)

235‌

225‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.75%

UniCredit

SpA

1.98%,

06/03/2027

(d),(e)

200‌

171‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.20%

Wells

Fargo

&

Co

3.75%,

01/24/2024

330‌

326‌

4.61%,

04/25/2053

(e)

320‌

271‌

Secured

Overnight

Financing

Rate

+

2.13%

4.90%,

07/25/2033

(e)

145‌

138‌

Secured

Overnight

Financing

Rate

+

2.10%

Westpac

Banking

Corp

4.11%,

07/24/2034

(e)

85‌

73‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.00%

4.42%,

07/24/2039

615‌

508‌

$

17,279‌

Beverages

-

0.46%

Anheuser-Busch

Cos

LLC

/

Anheuser-Busch

InBev

Worldwide

Inc

3.65%,

02/01/2026

115‌

111‌

Anheuser-Busch

InBev

Worldwide

Inc

4.38%,

04/15/2038

190‌

170‌

4.60%,

04/15/2048

204‌

177‌

5.45%,

01/23/2039

225‌

224‌

Central

American

Bottling

Corp

/

CBC

Bottling

Holdco

SL

/

Beliv

Holdco

SL

5.25%,

04/27/2029

(d)

70‌

65‌

PepsiCo

Inc

1.95%,

10/21/2031

100‌

81‌

4.20%,

07/18/2052

45‌

41‌

$

869‌

Biotechnology

-

0.08%

CSL

Finance

PLC

4.75%,

04/27/2052

(d)

175‌

157‌

Building

Materials

-

0.51%

Builders

FirstSource

Inc

4.25%,

02/01/2032

(d)

235‌

191‌

Cemex

SAB

de

CV

3.88%,

07/11/2031

(d)

325‌

274‌

GCC

SAB

de

CV

3.61%,

04/20/2032

(d)

200‌

166‌

Smyrna

Ready

Mix

Concrete

LLC

6.00%,

11/01/2028

(d)

370‌

331‌

$

962‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

172

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Chemicals

-

0.91%

Braskem

Netherlands

Finance

BV

4.50%,

01/31/2030

(d)

$

200‌

$

170‌

Consolidated

Energy

Finance

SA

5.63%,

10/15/2028

(d)

260‌

221‌

6.50%,

05/15/2026

(d)

150‌

140‌

Element

Solutions

Inc

3.88%,

09/01/2028

(d)

111‌

94‌

Olympus

Water

US

Holding

Corp

4.25%,

10/01/2028

(d)

275‌

223‌

Orbia

Advance

Corp

SAB

de

CV

2.88%,

05/11/2031

(d)

350‌

274‌

SABIC

Capital

II

BV

4.00%,

10/10/2023

(d)

200‌

198‌

Sherwin-Williams

Co/The

4.25%,

08/08/2025

150‌

147‌

Westlake

Corp

2.88%,

08/15/2041

358‌

236‌

$

1,703‌

Commercial

Mortgage

Backed

Securities

-

1.82%

Benchmark

2019-B15

Mortgage

Trust

3.56%,

12/15/2072

250‌

201‌

Benchmark

2021-B25

Mortgage

Trust

2.58%,

04/15/2054

150‌

125‌

Citigroup

Commercial

Mortgage

Trust

2015-GC27

3.57%,

02/10/2048

900‌

850‌

Citigroup

Commercial

Mortgage

Trust

2016-GC37

3.58%,

04/10/2049

350‌

322‌

GS

Mortgage

Securities

Trust

2011-GC5

0.00%,

08/10/2044

(d),(h),(i),(j)

1,344‌

—‌

GS

Mortgage

Securities

Trust

2013-GC16

0.99%,

11/10/2046

(i),(j)

1,751‌

8‌

GS

Mortgage

Securities

Trust

2014-GC26

0.94%,

11/10/2047

(i),(j)

3,473‌

48‌

GS

Mortgage

Securities

Trust

2015-GC34

3.51%,

10/10/2048

375‌

354‌

GS

Mortgage

Securities

Trust

2020-GSA2

2.01%,

12/12/2053

350‌

274‌

JP

Morgan

Chase

Commercial

Mortgage

Securities

Trust

2016-JP3

3.14%,

08/15/2049

500‌

436‌

JPMBB

Commercial

Mortgage

Securities

Trust

2014-C24

4.38%,

11/15/2047

(j)

500‌

423‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

2014-C14

0.91%,

02/15/2047

(i),(j)

2,791‌

15‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

2014-C16

0.94%,

06/15/2047

(i),(j)

2,756‌

19‌

MSBAM

Commercial

Mortgage

Securities

Trust

2012-CKSV

1.00%,

10/15/2030

(d),(i),(j)

3,289‌

—‌

SREIT

Trust

2021-MFP

5.05%,

11/15/2038

(d)

350‌

337‌

1.00

x

1

Month

USD

LIBOR

+

0.73%

WFRBS

Commercial

Mortgage

Trust

2013-C12

0.91%,

03/15/2048

(d),(i),(j)

213‌

—‌

$

3,412‌

Commercial

Services

-

0.77%

Ahern

Rentals

Inc

7.38%,

05/15/2023

(d)

40‌

40‌

DP

World

Ltd/United

Arab

Emirates

6.85%,

07/02/2037

100‌

106‌

Garda

World

Security

Corp

4.63%,

02/15/2027

(d)

40‌

35‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Commercial

Services

(continued)

PayPal

Holdings

Inc

3.25%,

06/01/2050

$

300‌

$

204‌

3.90%,

06/01/2027

(k)

300‌

289‌

Prime

Security

Services

Borrower

LLC

/

Prime

Finance

Inc

3.38%,

08/31/2027

(d)

64‌

55‌

6.25%,

01/15/2028

(d)

107‌

97‌

United

Rentals

North

America

Inc

3.88%,

02/15/2031

80‌

67‌

4.88%,

01/15/2028

164‌

156‌

WASH

Multifamily

Acquisition

Inc

5.75%,

04/15/2026

(d)

195‌

184‌

Williams

Scotsman

International

Inc

6.13%,

06/15/2025

(d)

72‌

71‌

ZipRecruiter

Inc

5.00%,

01/15/2030

(d)

155‌

128‌

$

1,432‌

Computers

-

0.49%

Dell

International

LLC

/

EMC

Corp

3.38%,

12/15/2041

(d)

350‌

234‌

6.10%,

07/15/2027

435‌

447‌

NCR

Corp

5.13%,

04/15/2029

(d)

185‌

155‌

Seagate

HDD

Cayman

9.63%,

12/01/2032

(d)

68‌

75‌

$

911‌

Consumer

Products

-

0.02%

Kronos

Acquisition

Holdings

Inc

/

KIK

Custom

Products

Inc

5.00%,

12/31/2026

(d)

40‌

35‌

Credit

Card

Asset

Backed

Securities

-

0.35%

BA

Credit

Card

Trust

0.34%,

05/15/2026

685‌

655‌

Diversified

Financial

Services

-

2.89%

AerCap

Holdings

NV

5.88%,

10/10/2079

(e)

150‌

137‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.54%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

2.45%,

10/29/2026

395‌

345‌

3.00%,

10/29/2028

470‌

394‌

3.15%,

02/15/2024

1,000‌

967‌

4.50%,

09/15/2023

465‌

462‌

Air

Lease

Corp

1.88%,

08/15/2026

465‌

404‌

2.88%,

01/15/2026

290‌

268‌

Ally

Financial

Inc

5.80%,

05/01/2025

210‌

209‌

Aviation

Capital

Group

LLC

1.95%,

09/20/2026

(d)

1,000‌

847‌

Avolon

Holdings

Funding

Ltd

2.75%,

02/21/2028

(d)

435‌

349‌

Credit

Acceptance

Corp

5.13%,

12/31/2024

(d)

75‌

70‌

6.63%,

03/15/2026

196‌

186‌

Global

Aircraft

Leasing

Co

Ltd

6.50%,

PIK

7.25%;

09/15/2024

(d),(j),(l)

190‌

162‌

ILFC

E-Capital

Trust

II

6.54%,

12/21/2065

(d),(j),(k)

100‌

64‌

LPL

Holdings

Inc

4.00%,

03/15/2029

(d)

175‌

152‌

OneMain

Finance

Corp

4.00%,

09/15/2030

50‌

37‌

5.63%,

03/15/2023

45‌

45‌

6.63%,

01/15/2028

42‌

39‌

6.88%,

03/15/2025

189‌

182‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

173

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Diversified

Financial

Services

(continued)

SLM

Corp

3.13%,

11/02/2026

$

90‌

$

77‌

$

5,396‌

Electric

-

3.41%

Ameren

Illinois

Co

3.85%,

09/01/2032

46‌

43‌

Avangrid

Inc

3.20%,

04/15/2025

490‌

468‌

Clearway

Energy

Operating

LLC

3.75%,

02/15/2031

(d)

70‌

58‌

3.75%,

01/15/2032

(d)

70‌

56‌

4.75%,

03/15/2028

(d)

55‌

51‌

CMS

Energy

Corp

3.00%,

05/15/2026

75‌

70‌

4.70%,

03/31/2043

120‌

101‌

Colbun

SA

3.15%,

01/19/2032

(d)

300‌

253‌

Commonwealth

Edison

Co

4.00%,

03/01/2049

225‌

182‌

DTE

Electric

Co

3.95%,

03/01/2049

60‌

49‌

DTE

Energy

Co

4.22%,

11/01/2024

(j)

250‌

246‌

Duke

Energy

Carolinas

LLC

3.55%,

03/15/2052

75‌

56‌

Edison

International

4.70%,

08/15/2025

138‌

135‌

Enel

Chile

SA

4.88%,

06/12/2028

280‌

273‌

Entergy

Texas

Inc

3.55%,

09/30/2049

280‌

201‌

FirstEnergy

Corp

2.25%,

09/01/2030

358‌

284‌

Inversiones

Latin

America

Power

Ltda

5.13%,

06/15/2033

(d)

196‌

94‌

ITC

Holdings

Corp

4.95%,

09/22/2027

(d)

150‌

148‌

Korea

Electric

Power

Corp

5.38%,

04/06/2026

(d)

200‌

202‌

Monongahela

Power

Co

3.55%,

05/15/2027

(d)

215‌

202‌

National

Rural

Utilities

Cooperative

Finance

Corp

5.45%,

10/30/2025

115‌

116‌

NextEra

Energy

Capital

Holdings

Inc

3.50%,

04/01/2029

300‌

273‌

NRG

Energy

Inc

3.88%,

02/15/2032

(d)

582‌

437‌

Oncor

Electric

Delivery

Co

LLC

4.95%,

09/15/2052

(d)

50‌

48‌

Oryx

Funding

Ltd

5.80%,

02/03/2031

200‌

190‌

Pacific

Gas

and

Electric

Co

1.70%,

11/15/2023

50‌

48‌

4.20%,

06/01/2041

185‌

137‌

PECO

Energy

Co

4.38%,

08/15/2052

70‌

62‌

Perusahaan

Perseroan

Persero

PT

Perusahaan

Listrik

Negara

3.88%,

07/17/2029

(d)

200‌

177‌

PPL

Electric

Utilities

Corp

3.95%,

06/01/2047

85‌

69‌

Public

Service

Co

of

Colorado

4.50%,

06/01/2052

43‌

39‌

Public

Service

Enterprise

Group

Inc

5.85%,

11/15/2027

225‌

232‌

Southern

California

Edison

Co

4.20%,

03/01/2029

125‌

119‌

4.88%,

03/01/2049

150‌

132‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

State

Grid

Overseas

Investment

BVI

Ltd

3.50%,

05/04/2027

$

400‌

$

381‌

Tucson

Electric

Power

Co

4.85%,

12/01/2048

25‌

21‌

Vistra

Corp

7.00%,

12/15/2026

(d),(e),(f)

75‌

68‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.74%

Vistra

Operations

Co

LLC

4.38%,

05/01/2029

(d)

185‌

159‌

WEC

Energy

Group

Inc

5.00%,

09/27/2025

100‌

100‌

5.15%,

10/01/2027

134‌

135‌

Xcel

Energy

Inc

4.60%,

06/01/2032

269‌

257‌

$

6,372‌

Electrical

Components

&

Equipment

-

0.15%

WESCO

Distribution

Inc

7.13%,

06/15/2025

(d)

80‌

81‌

7.25%,

06/15/2028

(d)

203‌

206‌

$

287‌

Electronics

-

0.17%

Imola

Merger

Corp

4.75%,

05/15/2029

(d)

135‌

117‌

Sensata

Technologies

BV

5.00%,

10/01/2025

(d)

100‌

98‌

Sensata

Technologies

Inc

3.75%,

02/15/2031

(d)

86‌

71‌

4.38%,

02/15/2030

(d)

31‌

27‌

$

313‌

Engineering

&

Construction

-

0.20%

Aeropuerto

Internacional

de

Tocumen

SA

5.13%,

08/11/2061

(d)

200‌

163‌

Global

Infrastructure

Solutions

Inc

5.63%,

06/01/2029

(d)

265‌

207‌

$

370‌

Entertainment

-

0.57%

Boyne

USA

Inc

4.75%,

05/15/2029

(d)

170‌

150‌

Caesars

Entertainment

Inc

6.25%,

07/01/2025

(d)

75‌

73‌

CCM

Merger

Inc

6.38%,

05/01/2026

(d)

85‌

80‌

CDI

Escrow

Issuer

Inc

5.75%,

04/01/2030

(d)

165‌

148‌

Cinemark

USA

Inc

5.25%,

07/15/2028

(d)

185‌

137‌

8.75%,

05/01/2025

(d)

55‌

56‌

Warnermedia

Holdings

Inc

3.76%,

03/15/2027

(d)

130‌

117‌

5.05%,

03/15/2042

(d)

160‌

122‌

5.14%,

03/15/2052

(d)

250‌

182‌

$

1,065‌

Environmental

Control

-

0.23%

Madison

IAQ

LLC

4.13%,

06/30/2028

(d)

210‌

175‌

Waste

Connections

Inc

2.20%,

01/15/2032

175‌

139‌

4.20%,

01/15/2033

130‌

121‌

$

435‌

Food

-

1.62%

Albertsons

Cos

Inc

/

Safeway

Inc

/

New

Albertsons

LP

/

Albertsons

LLC

4.63%,

01/15/2027

(d)

100‌

93‌

4.88%,

02/15/2030

(d)

160‌

143‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

174

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Food

(continued)

Cencosud

SA

4.38%,

07/17/2027

(d)

$

200‌

$

190‌

JBS

USA

LUX

SA

/

JBS

USA

Food

Co

/

JBS

USA

Finance

Inc

3.63%,

01/15/2032

(d)

200‌

162‌

4.38%,

02/02/2052

(d)

526‌

372‌

6.50%,

12/01/2052

(d)

110‌

105‌

Kraft

Heinz

Foods

Co

3.75%,

04/01/2030

57‌

52‌

4.88%,

10/01/2049

435‌

378‌

MARB

BondCo

PLC

3.95%,

01/29/2031

200‌

154‌

Nestle

Holdings

Inc

4.13%,

10/01/2027

(d)

250‌

244‌

Pilgrim's

Pride

Corp

3.50%,

03/01/2032

(d)

100‌

78‌

4.25%,

04/15/2031

(d)

875‌

744‌

Post

Holdings

Inc

4.50%,

09/15/2031

(d)

180‌

151‌

Sysco

Corp

3.15%,

12/14/2051

20‌

13‌

3.30%,

07/15/2026

167‌

158‌

$

3,037‌

Forest

Products

&

Paper

-

0.03%

Suzano

Austria

GmbH

3.75%,

01/15/2031

75‌

63‌

Gas

-

0.19%

NiSource

Inc

0.95%,

08/15/2025

400‌

361‌

Healthcare

-

Products

-

0.16%

Abbott

Laboratories

1.40%,

06/30/2030

75‌

59‌

Boston

Scientific

Corp

3.45%,

03/01/2024

127‌

125‌

4.55%,

03/01/2039

128‌

115‌

$

299‌

Healthcare

-

Services

-

1.36%

Acadia

Healthcare

Co

Inc

5.00%,

04/15/2029

(d)

90‌

83‌

Centene

Corp

2.50%,

03/01/2031

150‌

117‌

2.63%,

08/01/2031

805‌

633‌

3.00%,

10/15/2030

81‌

66‌

3.38%,

02/15/2030

92‌

78‌

4.25%,

12/15/2027

165‌

155‌

CHS/Community

Health

Systems

Inc

6.00%,

01/15/2029

(d)

260‌

217‌

8.00%,

03/15/2026

(d)

50‌

45‌

HCA

Inc

3.13%,

03/15/2027

(d)

350‌

318‌

3.50%,

07/15/2051

195‌

125‌

Tenet

Healthcare

Corp

4.63%,

09/01/2024

(d)

75‌

73‌

6.13%,

06/15/2030

(d)

155‌

148‌

UnitedHealth

Group

Inc

4.75%,

05/15/2052

235‌

217‌

5.15%,

10/15/2025

150‌

152‌

5.88%,

02/15/2053

105‌

113‌

$

2,540‌

Home

Builders

-

0.14%

Beazer

Homes

USA

Inc

6.75%,

03/15/2025

40‌

38‌

Forestar

Group

Inc

3.85%,

05/15/2026

(d)

35‌

31‌

5.00%,

03/01/2028

(d)

100‌

86‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Home

Builders

(continued)

Lennar

Corp

4.75%,

05/30/2025

$

100‌

$

99‌

$

254‌

Home

Equity

Asset

Backed

Securities

-

0.03%

Saxon

Asset

Securities

Trust

2004-1

2.05%,

03/25/2035

95‌

52‌

1.00

x

1

Month

USD

LIBOR

+

1.70%

Insurance

-

1.13%

Acrisure

LLC

/

Acrisure

Finance

Inc

4.25%,

02/15/2029

(d)

180‌

149‌

7.00%,

11/15/2025

(d)

80‌

73‌

AIA

Group

Ltd

3.20%,

09/16/2040

(d)

320‌

228‌

American

International

Group

Inc

3.90%,

04/01/2026

34‌

33‌

Arch

Capital

Finance

LLC

4.01%,

12/15/2026

125‌

119‌

Arch

Capital

Group

Ltd

3.64%,

06/30/2050

275‌

190‌

Arthur

J

Gallagher

&

Co

3.50%,

05/20/2051

275‌

192‌

Chubb

INA

Holdings

Inc

3.35%,

05/03/2026

164‌

157‌

Corebridge

Financial

Inc

4.40%,

04/05/2052

(d)

195‌

154‌

Enstar

Group

Ltd

3.10%,

09/01/2031

60‌

44‌

Markel

Corp

3.35%,

09/17/2029

265‌

230‌

4.30%,

11/01/2047

95‌

74‌

MassMutual

Global

Funding

II

4.15%,

08/26/2025

(d)

380‌

372‌

MetLife

Inc

5.00%,

07/15/2052

110‌

105‌

$

2,120‌

Internet

-

0.91%

Alibaba

Group

Holding

Ltd

2.13%,

02/09/2031

(k)

200‌

159‌

Amazon.com

Inc

3.10%,

05/12/2051

220‌

157‌

4.55%,

12/01/2027

600‌

598‌

Baidu

Inc

4.38%,

05/14/2024

200‌

197‌

Meta

Platforms

Inc

3.50%,

08/15/2027

200‌

186‌

4.45%,

08/15/2052

125‌

99‌

Netflix

Inc

4.38%,

11/15/2026

77‌

74‌

4.88%,

06/15/2030

(d)

80‌

75‌

Prosus

NV

4.19%,

01/19/2032

(d)

200‌

166‌

$

1,711‌

Investment

Companies

-

0.22%

Blackstone

Private

Credit

Fund

4.70%,

03/24/2025

(k)

215‌

206‌

Compass

Group

Diversified

Holdings

LLC

5.25%,

04/15/2029

(d)

180‌

154‌

Icahn

Enterprises

LP

/

Icahn

Enterprises

Finance

Corp

4.75%,

09/15/2024

55‌

53‌

$

413‌

Iron

&

Steel

-

0.08%

Nucor

Corp

3.85%,

04/01/2052

70‌

54‌

Vale

Overseas

Ltd

3.75%,

07/08/2030

100‌

87‌

$

141‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

175

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Leisure

Products

&

Services

-

0.19%

Life

Time

Inc

5.75%,

01/15/2026

(d)

$

215‌

$

200‌

NCL

Corp

Ltd

5.88%,

02/15/2027

(d)

70‌

61‌

NCL

Finance

Ltd

6.13%,

03/15/2028

(d)

115‌

85‌

$

346‌

Lodging

-

0.46%

Marriott

International

Inc/MD

2.75%,

10/15/2033

425‌

324‌

3.60%,

04/15/2024

300‌

294‌

5.00%,

10/15/2027

250‌

247‌

$

865‌

Machinery

-

Diversified

-

0.14%

Maxim

Crane

Works

Holdings

Capital

LLC

10.13%,

08/01/2024

(d)

124‌

120‌

Westinghouse

Air

Brake

Technologies

Corp

3.20%,

06/15/2025

150‌

141‌

$

261‌

Media

-

1.38%

AMC

Networks

Inc

4.75%,

08/01/2025

204‌

155‌

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp

4.50%,

08/15/2030

(d)

245‌

203‌

4.75%,

03/01/2030

(d)

81‌

70‌

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

3.50%,

06/01/2041

375‌

245‌

4.91%,

07/23/2025

620‌

608‌

Comcast

Corp

5.25%,

11/07/2025

135‌

137‌

5.50%,

11/15/2032

400‌

417‌

Directv

Financing

LLC

/

Directv

Financing

Co-

Obligor

Inc

5.88%,

08/15/2027

(d)

26‌

23‌

DISH

DBS

Corp

5.25%,

12/01/2026

(d)

31‌

26‌

5.88%,

11/15/2024

96‌

89‌

7.38%,

07/01/2028

106‌

75‌

DISH

Network

Corp

11.75%,

11/15/2027

(d)

40‌

41‌

Paramount

Global

4.75%,

05/15/2025

46‌

45‌

Sirius

XM

Radio

Inc

4.00%,

07/15/2028

(d)

214‌

186‌

UPC

Holding

BV

5.50%,

01/15/2028

(d)

300‌

266‌

$

2,586‌

Mining

-

0.26%

Hudbay

Minerals

Inc

4.50%,

04/01/2026

(d)

120‌

109‌

6.13%,

04/01/2029

(d)

50‌

45‌

IAMGOLD

Corp

5.75%,

10/15/2028

(d)

97‌

75‌

New

Gold

Inc

7.50%,

07/15/2027

(d)

75‌

66‌

Novelis

Corp

3.25%,

11/15/2026

(d)

5‌

5‌

4.75%,

01/30/2030

(d)

174‌

154‌

Taseko

Mines

Ltd

7.00%,

02/15/2026

(d)

40‌

35‌

$

489‌

Miscellaneous

Manufacturers

-

0.06%

Parker-Hannifin

Corp

4.25%,

09/15/2027

115‌

112‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Mortgage

Backed

Securities

-

1.47%

Fannie

Mae

REMIC

Trust

2005-W2

4.59%,

05/25/2035

$

5‌

$

5‌

1.00

x

1

Month

USD

LIBOR

+

0.20%

Fannie

Mae

REMICS

1.71%,

02/25/2043

(i)

139‌

14‌

(1.00)

x

1

Month

USD

LIBOR

+

6.10%

1.71%,

09/25/2046

(i)

144‌

13‌

(1.00)

x

1

Month

USD

LIBOR

+

6.10%

2.25%,

07/25/2040

19‌

18‌

3.00%,

04/25/2027

(i)

68‌

3‌

3.00%,

09/25/2050

(i)

971‌

152‌

3.50%,

11/25/2027

(i)

44‌

2‌

3.50%,

07/25/2028

(i)

89‌

4‌

Freddie

Mac

REMICS

1.73%,

10/15/2046

(i)

1,097‌

99‌

(1.00)

x

1

Month

USD

LIBOR

+

6.05%

3.00%,

05/15/2027

(i)

47‌

2‌

3.00%,

10/15/2027

(i)

29‌

1‌

4.77%,

05/15/2049

996‌

969‌

1.00

x

1

Month

USD

LIBOR

+

0.45%

Ginnie

Mae

1.15%,

05/20/2042

(i)

543‌

44‌

(1.00)

x

1

Month

USD

LIBOR

+

5.50%

1.75%,

11/20/2041

(i)

153‌

17‌

(1.00)

x

1

Month

USD

LIBOR

+

6.10%

1.75%,

06/20/2046

(i)

331‌

36‌

(1.00)

x

1

Month

USD

LIBOR

+

6.10%

1.79%,

12/20/2043

(i)

168‌

17‌

(1.00)

x

1

Month

USD

LIBOR

+

6.14%

1.85%,

10/20/2045

(i)

379‌

41‌

(1.00)

x

1

Month

USD

LIBOR

+

6.20%

1.85%,

08/20/2047

(i)

925‌

107‌

(1.00)

x

1

Month

USD

LIBOR

+

6.20%

1.85%,

11/20/2047

(i)

269‌

27‌

(1.00)

x

1

Month

USD

LIBOR

+

6.20%

1.95%,

08/20/2050

(i)

1,004‌

126‌

(1.00)

x

1

Month

USD

LIBOR

+

6.30%

1.95%,

09/20/2050

(i)

888‌

109‌

(1.00)

x

1

Month

USD

LIBOR

+

6.30%

1.95%,

08/20/2051

(i)

650‌

80‌

(1.00)

x

1

Month

USD

LIBOR

+

6.30%

2.30%,

02/20/2042

(i)

98‌

13‌

(1.00)

x

1

Month

USD

LIBOR

+

6.65%

2.31%,

04/20/2041

(i)

587‌

71‌

(1.10)

x

1

Month

USD

LIBOR

+

7.10%

2.50%,

12/20/2050

(i)

1,054‌

162‌

3.00%,

07/20/2050

(i)

288‌

42‌

3.00%,

11/20/2050

(i)

562‌

85‌

3.00%,

11/20/2050

(i)

950‌

142‌

3.00%,

11/20/2050

(i)

1,140‌

193‌

3.50%,

10/20/2049

(i)

417‌

70‌

JP

Morgan

Mortgage

Trust

2016-2

4.58%,

06/25/2046

(d),(j)

60‌

54‌

Washington

Mutual

Mortgage

Pass-Through

Certificates

WMALT

Series

2006-AR1

Trust

4.89%,

02/25/2036

46‌

37‌

1.00

x

1

Month

USD

LIBOR

+

0.50%

$

2,755‌

Oil

&

Gas

-

1.21%

Aethon

United

BR

LP

/

Aethon

United

Finance

Corp

8.25%,

02/15/2026

(d)

330‌

327‌

Antero

Resources

Corp

7.63%,

02/01/2029

(d)

220‌

221‌

Ascent

Resources

Utica

Holdings

LLC

/

ARU

Finance

Corp

7.00%,

11/01/2026

(d)

120‌

116‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

176

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Oil

&

Gas

(continued)

Comstock

Resources

Inc

5.88%,

01/15/2030

(d)

$

140‌

$

120‌

CrownRock

LP

/

CrownRock

Finance

Inc

5.63%,

10/15/2025

(d)

85‌

82‌

Ecopetrol

SA

6.88%,

04/29/2030

175‌

159‌

Leviathan

Bond

Ltd

5.75%,

06/30/2023

(d)

175‌

174‌

MEG

Energy

Corp

7.13%,

02/01/2027

(d)

145‌

148‌

Nabors

Industries

Inc

9.00%,

02/01/2025

(d)

55‌

56‌

Occidental

Petroleum

Corp

5.55%,

03/15/2026

80‌

80‌

5.88%,

09/01/2025

425‌

424‌

6.13%,

01/01/2031

55‌

56‌

6.63%,

09/01/2030

36‌

37‌

Petrobras

Global

Finance

BV

5.50%,

06/10/2051

110‌

84‌

Petroleos

Mexicanos

6.70%,

02/16/2032

217‌

170‌

$

2,254‌

Oil

&

Gas

Services

-

0.11%

Archrock

Partners

LP

/

Archrock

Partners

Finance

Corp

6.25%,

04/01/2028

(d)

220‌

201‌

Other

Asset

Backed

Securities

-

0.44%

Dell

Equipment

Finance

Trust

2021-1

0.33%,

05/22/2026

(d)

12‌

12‌

DLLST

2022-1

LLC

2.79%,

01/22/2024

(d)

580‌

575‌

Verizon

Owner

Trust

2020-B

0.47%,

02/20/2025

242‌

238‌

$

825‌

Packaging

&

Containers

-

0.29%

Canpack

SA

/

Canpack

US

LLC

3.13%,

11/01/2025

(d)

200‌

175‌

Clydesdale

Acquisition

Holdings

Inc

6.63%,

04/15/2029

(d)

70‌

66‌

8.75%,

04/15/2030

(d)

50‌

43‌

Crown

Americas

LLC

/

Crown

Americas

Capital

Corp

VI

4.75%,

02/01/2026

60‌

58‌

Crown

Cork

&

Seal

Co

Inc

7.38%,

12/15/2026

122‌

126‌

Graphic

Packaging

International

LLC

4.13%,

08/15/2024

40‌

39‌

LABL

Inc

6.75%,

07/15/2026

(d)

40‌

38‌

$

545‌

Pharmaceuticals

-

0.95%

AbbVie

Inc

2.60%,

11/21/2024

65‌

62‌

4.05%,

11/21/2039

350‌

300‌

BellRing

Brands

Inc

7.00%,

03/15/2030

(d)

145‌

139‌

Bristol-Myers

Squibb

Co

4.13%,

06/15/2039

120‌

107‌

Cigna

Corp

4.90%,

12/15/2048

35‌

31‌

CVS

Health

Corp

4.30%,

03/25/2028

31‌

30‌

4.88%,

07/20/2035

190‌

180‌

5.05%,

03/25/2048

85‌

76‌

Jazz

Securities

DAC

4.38%,

01/15/2029

(d)

95‌

85‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pharmaceuticals

(continued)

Viatris

Inc

1.65%,

06/22/2025

$

75‌

$

68‌

Zoetis

Inc

3.00%,

09/12/2027

310‌

287‌

4.45%,

08/20/2048

345‌

297‌

4.70%,

02/01/2043

120‌

108‌

$

1,770‌

Pipelines

-

2.37%

Antero

Midstream

Partners

LP

/

Antero

Midstream

Finance

Corp

5.38%,

06/15/2029

(d)

170‌

155‌

5.75%,

03/01/2027

(d)

150‌

142‌

CNX

Midstream

Partners

LP

4.75%,

04/15/2030

(d)

220‌

181‌

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp

5.63%,

05/01/2027

(d)

239‌

222‌

Energy

Transfer

LP

3.75%,

05/15/2030

505‌

445‌

4.50%,

04/15/2024

390‌

385‌

5.15%,

03/15/2045

600‌

497‌

5.55%,

02/15/2028

212‌

210‌

Enterprise

Products

Operating

LLC

4.20%,

01/31/2050

180‌

142‌

EQM

Midstream

Partners

LP

6.00%,

07/01/2025

(d)

27‌

26‌

7.50%,

06/01/2027

(d)

50‌

49‌

Hess

Midstream

Operations

LP

4.25%,

02/15/2030

(d)

225‌

192‌

5.63%,

02/15/2026

(d)

110‌

107‌

Kinder

Morgan

Inc

1.75%,

11/15/2026

440‌

388‌

Kinetik

Holdings

LP

5.88%,

06/15/2030

(d)

160‌

150‌

NuStar

Logistics

LP

5.75%,

10/01/2025

50‌

48‌

Sabine

Pass

Liquefaction

LLC

5.00%,

03/15/2027

175‌

172‌

5.75%,

05/15/2024

375‌

375‌

Williams

Cos

Inc/The

4.55%,

06/24/2024

550‌

544‌

$

4,430‌

REITs

-

1

.07%

American

Tower

Corp

1.30%,

09/15/2025

185‌

167‌

HAT

Holdings

I

LLC

/

HAT

Holdings

II

LLC

3.38%,

06/15/2026

(d)

140‌

122‌

3.75%,

09/15/2030

(d)

150‌

110‌

Invitation

Homes

Operating

Partnership

LP

2.00%,

08/15/2031

200‌

148‌

2.30%,

11/15/2028

495‌

409‌

KRC

Interim

Corp

3.20%,

04/01/2032

140‌

116‌

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp

4.75%,

06/15/2029

(d)

188‌

152‌

Mid-America

Apartments

LP

2.88%,

09/15/2051

229‌

146‌

VICI

Properties

LP

/

VICI

Note

Co

Inc

3.50%,

02/15/2025

(d)

50‌

47‌

4.13%,

08/15/2030

(d)

555‌

486‌

XHR

LP

4.88%,

06/01/2029

(d)

130‌

106‌

$

2,009‌

Retail

-

0.43%

Abercrombie

&

Fitch

Management

Co

8.75%,

07/15/2025

(d),(k)

35‌

34‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

177

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Retail

(continued)

Bath

&

Body

Works

Inc

5.25%,

02/01/2028

$

60‌

$

56‌

6.63%,

10/01/2030

(d)

109‌

102‌

9.38%,

07/01/2025

(d)

78‌

83‌

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co

Inc

4.63%,

01/15/2029

(d)

175‌

148‌

IRB

Holding

Corp

7.00%,

06/15/2025

(d)

10‌

10‌

LSF9

Atlantis

Holdings

LLC

/

Victra

Finance

Corp

7.75%,

02/15/2026

(d)

165‌

146‌

Patrick

Industries

Inc

4.75%,

05/01/2029

(d)

100‌

83‌

7.50%,

10/15/2027

(d)

140‌

136‌

$

798‌

Semiconductors

-

0.56%

Broadcom

Inc

3.14%,

11/15/2035

(d)

34‌

25‌

3.42%,

04/15/2033

(d)

732‌

587‌

KLA

Corp

3.30%,

03/01/2050

350‌

253‌

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA

Inc

2.70%,

05/01/2025

60‌

57‌

3.15%,

05/01/2027

60‌

54‌

Skyworks

Solutions

Inc

1.80%,

06/01/2026

85‌

75‌

$

1,051‌

Software

-

1.91%

Fidelity

National

Information

Services

Inc

4.50%,

07/15/2025

400‌

392‌

Fiserv

Inc

3.20%,

07/01/2026

200‌

187‌

4.40%,

07/01/2049

190‌

154‌

Open

Text

Corp

3.88%,

02/15/2028

(d)

90‌

77‌

3.88%,

12/01/2029

(d)

345‌

278‌

Open

Text

Holdings

Inc

4.13%,

02/15/2030

(d)

295‌

237‌

Oracle

Corp

2.50%,

04/01/2025

255‌

241‌

2.80%,

04/01/2027

240‌

219‌

2.95%,

05/15/2025

100‌

95‌

3.95%,

03/25/2051

105‌

75‌

6.15%,

11/09/2029

115‌

119‌

Salesforce

Inc

3.70%,

04/11/2028

230‌

221‌

Take-Two

Interactive

Software

Inc

3.55%,

04/14/2025

340‌

327‌

4.00%,

04/14/2032

145‌

128‌

VMware

Inc

1.40%,

08/15/2026

535‌

466‌

1.80%,

08/15/2028

440‌

359‌

$

3,575‌

Sovereign

-

1.26%

Brazilian

Government

International

Bond

3.88%,

06/12/2030

(k)

205‌

178‌

Chile

Government

International

Bond

2.55%,

07/27/2033

200‌

157‌

CoBank

ACB

6.25%,

10/01/2026

(e),(f)

115‌

111‌

3

Month

USD

LIBOR

+

4.66%

Colombia

Government

International

Bond

3.13%,

04/15/2031

200‌

148‌

Dominican

Republic

International

Bond

4.88%,

09/23/2032

(d)

200‌

166‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Sovereign

(continued)

Egypt

Government

International

Bond

5.80%,

09/30/2027

(d)

$

225‌

$

185‌

Indonesia

Government

International

Bond

2.85%,

02/14/2030

200‌

178‌

Mexico

Government

International

Bond

4.75%,

03/08/2044

280‌

226‌

Philippine

Government

International

Bond

3.75%,

01/14/2029

200‌

191‌

Qatar

Government

International

Bond

4.63%,

06/02/2046

200‌

189‌

Romanian

Government

International

Bond

3.63%,

03/27/2032

90‌

72‌

Saudi

Government

International

Bond

4.50%,

10/26/2046

450‌

399‌

UAE

International

Government

Bond

3.25%,

10/19/2061

(d)

200‌

147‌

$

2,347‌

Telecommunications

-

2.03%

America

Movil

SAB

de

CV

5.38%,

04/04/2032

(d)

200‌

180‌

AT&T

Inc

2.55%,

12/01/2033

199‌

153‌

3.50%,

09/15/2053

749‌

505‌

Axtel

SAB

de

CV

6.38%,

11/14/2024

200‌

164‌

CT

Trust

5.13%,

02/03/2032

(d)

200‌

176‌

Empresa

Nacional

de

Telecomunicaciones

SA

3.05%,

09/14/2032

(d)

200‌

159‌

Maxar

Technologies

Inc

7.75%,

06/15/2027

(d)

155‌

161‌

T-Mobile

USA

Inc

2.40%,

03/15/2029

340‌

287‌

2.55%,

02/15/2031

210‌

172‌

3.50%,

04/15/2025

315‌

303‌

3.50%,

04/15/2031

560‌

484‌

Verizon

Communications

Inc

2.55%,

03/21/2031

610‌

502‌

2.88%,

11/20/2050

190‌

119‌

4.27%,

01/15/2036

325‌

289‌

Viavi

Solutions

Inc

3.75%,

10/01/2029

(d)

180‌

151‌

$

3,805‌

Transportation

-

0.19%

Burlington

Northern

Santa

Fe

LLC

4.45%,

01/15/2053

60‌

53‌

Eletson

Holdings

Inc

/

Eletson

Finance

US

LLC

/

Agathonissos

Finance

LLC

0.00%,

01/15/2022

(h),(m)

121‌

1‌

Union

Pacific

Corp

3.50%,

02/14/2053

280‌

210‌

XPO

Escrow

Sub

LLC

7.50%,

11/15/2027

(d)

85‌

86‌

$

350‌

Water

-

0.05%

Essential

Utilities

Inc

2.70%,

04/15/2030

115‌

96‌

TOTAL

BONDS

$

99,033‌

SENIOR

FLOATING

RATE

INTERESTS

-

0.89%

Principal

Amount

(000's)

Value

(000's)

Airlines

-

0.16%

AAdvantage

Loyalty

IP

Ltd

8.99%,

04/20/2028

(n)

$

180‌

$

179‌

1

Month

USD

LIBOR

+

4.75%

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

178

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Airlines

(continued)

United

Airlines

Inc

8.11%,

04/21/2028

(n)

$

122‌

$

120‌

1

Month

USD

LIBOR

+

3.75%

$

299‌

Commercial

Services

-

0.08%

Garda

World

Security

Corp

8.93%,

10/30/2026

(n)

150‌

146‌

1

Month

USD

LIBOR

+

4.25%

Computers

-

0.05%

Virtusa

Corp

7.82%,

02/11/2028

(n)

95‌

91‌

1

Month

USD

LIBOR

+

3.75%

Consumer

Products

-

0.07%

Kronos

Acquisition

Holdings

Inc

6.82%,

12/22/2026

(n)

137‌

129‌

1

Month

USD

LIBOR

+

3.75%

Diversified

Financial

Services

-

0.10%

Russell

Investments

US

Institutional

Holdco

Inc

6.75%,

05/30/2025

(n)

190‌

182‌

1

Month

USD

LIBOR

+

3.50%

Entertainment

-

0.02%

Lions

Gate

Capital

Holdings

LLC

6.32%,

03/24/2025

(n)

48‌

45‌

3

Month

USD

LIBOR

+

2.00%

Environmental

Control

-

0.02%

Madison

IAQ

LLC

6.81%,

06/21/2028

(n)

49‌

46‌

1

Month

USD

LIBOR

+

3.25%

Lodging

-

0.03%

Fertitta

Entertainment

LLC/NV

8.09%,

01/13/2029

(n)

61‌

58‌

CME

Term

Secured

Overnight

Financing

Rate

1

Month

+

4.00%

Media

-

0.11%

CSC

Holdings

LLC

6.37%,

04/15/2027

(n)

49‌

43‌

CME

Term

Secured

Overnight

Financing

Rate

1

Month

+

2.50%

Directv

Financing

LLC

9.07%,

08/02/2027

(n)

161‌

157‌

1

Month

USD

LIBOR

+

5.00%

$

200‌

Oil

&

Gas

-

0.01%

Ascent

Resources

Utica

Holdings

LLC

12.94%,

11/01/2025

(n)

20‌

21‌

1

Month

USD

LIBOR

+

9.00%

Packaging

&

Containers

-

0.02%

Valcour

Packaging

LLC

7.98%,

09/30/2028

(n)

45‌

37‌

1

Month

USD

LIBOR

+

3.75%

Pharmaceuticals

-

0.14%

Bausch

Health

Cos

Inc

9.15%,

01/27/2027

(n)

234‌

177‌

CME

Term

Secured

Overnight

Financing

Rate

1

Month

+

5.25%

Jazz

Financing

Lux

Sarl

7.25%,

05/05/2028

(n)

85‌

84‌

1

Month

USD

LIBOR

+

3.50%

$

261‌

Retail

-

0.08%

IRB

Holding

Corp

6.50%,

02/05/2025

(n)

152‌

150‌

1

Month

USD

LIBOR

+

2.75%

TOTAL

SENIOR

FLOATING

RATE

INTERESTS

$

1,665‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

52.71%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

1.65%

2.13%,

02/01/2037

$

2‌

$

2‌

1.00

x

12

Month

USD

LIBOR

+

1.63%

3.00%,

10/01/2042

25‌

23‌

3.00%,

11/01/2042

152‌

138‌

3.00%,

11/01/2042

27‌

24‌

3.00%,

03/01/2043

756‌

689‌

3.00%,

12/01/2046

54‌

49‌

3.50%,

10/01/2041

14‌

13‌

3.50%,

04/01/2042

50‌

47‌

3.50%,

04/01/2042

19‌

18‌

3.50%,

10/01/2045

386‌

360‌

3.50%,

03/01/2048

57‌

53‌

4.00%,

02/01/2045

7‌

6‌

4.00%,

02/01/2046

125‌

120‌

4.00%,

02/01/2046

32‌

31‌

4.00%,

06/01/2046

23‌

22‌

4.00%,

04/01/2047

111‌

107‌

4.00%,

11/01/2047

160‌

152‌

4.50%,

07/01/2024

2‌

2‌

4.50%,

10/01/2041

15‌

14‌

4.50%,

12/01/2043

366‌

360‌

4.50%,

03/01/2046

154‌

152‌

5.00%,

06/01/2031

37‌

37‌

5.00%,

10/01/2035

14‌

14‌

5.00%,

06/01/2041

518‌

526‌

6.00%,

06/01/2032

11‌

11‌

6.00%,

10/01/2032

6‌

6‌

6.00%,

01/01/2038

27‌

28‌

6.50%,

03/01/2029

1‌

1‌

6.50%,

05/01/2029

2‌

2‌

6.50%,

04/01/2031

1‌

1‌

6.50%,

02/01/2032

2‌

2‌

6.50%,

05/01/2032

2‌

2‌

6.50%,

04/01/2035

4‌

4‌

7.00%,

12/01/2029

5‌

5‌

7.00%,

06/01/2030

3‌

3‌

7.00%,

01/01/2031

1‌

1‌

7.00%,

12/01/2031

24‌

24‌

7.50%,

03/01/2031

5‌

5‌

8.00%,

09/01/2030

25‌

26‌

$

3,080‌

Federal

National

Mortgage

Association

(FNMA)

-

0.08%

3.50%,

01/01/2038

(o)

150‌

144‌

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

-

24.98%

2.00%,

12/01/2035

449‌

401‌

2.00%,

03/01/2036

639‌

570‌

2.00%,

07/01/2050

1,367‌

1,119‌

2.00%,

01/01/2051

1,132‌

941‌

2.00%,

02/01/2051

3,804‌

3,147‌

2.00%,

03/01/2051

1,440‌

1,194‌

2.00%,

03/01/2051

1,252‌

1,031‌

2.00%,

12/01/2051

548‌

453‌

2.00%,

12/01/2051

1,862‌

1,525‌

2.00%,

04/01/2052

2,252‌

1,846‌

2.00%,

05/01/2052

581‌

480‌

2.50%,

06/01/2035

1,008‌

925‌

2.50%,

08/01/2035

1,168‌

1,076‌

2.50%,

08/01/2050

1,540‌

1,320‌

2.50%,

07/01/2051

1,155‌

990‌

2.50%,

09/01/2051

755‌

646‌

2.50%,

09/01/2051

449‌

386‌

2.50%,

11/01/2051

663‌

570‌

2.50%,

01/01/2052

711‌

610‌

2.50%,

02/01/2052

571‌

487‌

2.50%,

02/01/2052

1,599‌

1,356‌

2.50%,

04/01/2052

573‌

488‌

2.50%,

04/01/2052

1,588‌

1,351‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

179

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%,

01/01/2053

(o)

$

368‌

$

311‌

3.00%,

03/01/2034

112‌

105‌

3.00%,

01/01/2038

(o)

1,625‌

1,522‌

3.00%,

03/01/2042

37‌

33‌

3.00%,

03/01/2042

34‌

31‌

3.00%,

05/01/2042

20‌

18‌

3.00%,

06/01/2042

34‌

31‌

3.00%,

06/01/2042

16‌

15‌

3.00%,

05/01/2043

92‌

83‌

3.00%,

07/01/2050

500‌

444‌

3.00%,

11/01/2050

428‌

383‌

3.00%,

07/01/2051

2,137‌

1,879‌

3.00%,

04/01/2052

2,307‌

2,043‌

3.00%,

01/01/2053

(o)

425‌

373‌

3.50%,

04/01/2030

140‌

137‌

3.50%,

05/01/2034

621‌

597‌

3.50%,

08/01/2034

128‌

122‌

3.50%,

12/01/2040

29‌

27‌

3.50%,

01/01/2041

15‌

14‌

3.50%,

12/01/2041

7‌

7‌

3.50%,

03/01/2042

15‌

14‌

3.50%,

04/01/2042

32‌

30‌

3.50%,

11/01/2042

484‌

453‌

3.50%,

07/01/2043

443‌

415‌

3.50%,

01/01/2044

132‌

123‌

3.50%,

11/01/2044

628‌

587‌

3.50%,

06/01/2045

45‌

42‌

3.50%,

05/01/2046

12‌

11‌

3.50%,

10/01/2047

779‌

730‌

3.50%,

11/01/2047

324‌

301‌

3.50%,

03/01/2048

458‌

426‌

3.50%,

06/01/2051

222‌

203‌

3.50%,

01/01/2053

(o)

1,400‌

1,272‌

4.00%,

03/01/2034

179‌

175‌

4.00%,

09/01/2040

35‌

33‌

4.00%,

05/01/2041

80‌

77‌

4.00%,

10/01/2041

23‌

22‌

4.00%,

10/01/2041

11‌

10‌

4.00%,

11/01/2041

16‌

15‌

4.00%,

04/01/2042

12‌

12‌

4.00%,

11/01/2043

48‌

46‌

4.00%,

02/01/2044

53‌

51‌

4.00%,

06/01/2044

106‌

102‌

4.00%,

09/01/2044

9‌

8‌

4.00%,

09/01/2045

47‌

45‌

4.00%,

12/01/2045

207‌

198‌

4.00%,

01/01/2047

18‌

17‌

4.00%,

11/01/2047

692‌

661‌

4.00%,

05/01/2048

31‌

30‌

4.00%,

10/01/2048

144‌

138‌

4.00%,

01/01/2049

67‌

64‌

4.00%,

01/01/2053

(o)

3,000‌

2,813‌

4.50%,

07/01/2025

7‌

7‌

4.50%,

08/01/2040

19‌

18‌

4.50%,

11/01/2040

402‌

398‌

4.50%,

08/01/2041

12‌

12‌

4.50%,

09/01/2041

131‌

130‌

4.50%,

05/01/2044

15‌

15‌

4.50%,

12/01/2044

22‌

22‌

4.50%,

06/01/2046

11‌

11‌

4.50%,

05/01/2047

9‌

9‌

4.50%,

05/01/2047

19‌

19‌

4.50%,

05/01/2049

85‌

83‌

4.50%,

01/01/2053

(o)

1,925‌

1,852‌

5.00%,

10/01/2041

70‌

71‌

5.00%,

06/01/2048

156‌

157‌

5.00%,

01/01/2053

(o)

1,300‌

1,281‌

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%,

07/01/2033

$

95‌

$

97‌

5.50%,

04/01/2035

10‌

10‌

5.50%,

08/01/2036

252‌

261‌

5.50%,

02/01/2037

2‌

2‌

5.50%,

05/01/2040

8‌

8‌

5.50%,

01/01/2053

(o)

1,000‌

1,002‌

6.00%,

05/01/2031

1‌

1‌

6.00%,

07/01/2035

69‌

71‌

6.00%,

02/01/2037

21‌

21‌

6.00%,

02/01/2038

25‌

27‌

6.00%,

01/01/2053

(o)

800‌

812‌

6.50%,

03/01/2032

1‌

1‌

6.50%,

07/01/2037

16‌

17‌

6.50%,

07/01/2037

4‌

4‌

6.50%,

02/01/2038

24‌

25‌

6.50%,

09/01/2038

69‌

74‌

$

46,729‌

Government

National

Mortgage

Association

(GNMA)

-

8.42%

2.00%,

02/20/2051

1,554‌

1,303‌

2.00%,

07/20/2051

2,591‌

2,172‌

2.50%,

06/20/2050

752‌

657‌

2.50%,

05/20/2051

1,027‌

893‌

2.50%,

09/20/2051

1,525‌

1,323‌

2.50%,

01/01/2053

(o)

550‌

477‌

3.00%,

02/15/2043

156‌

143‌

3.00%,

07/20/2044

186‌

169‌

3.00%,

01/20/2046

116‌

105‌

3.00%,

07/20/2046

175‌

159‌

3.00%,

12/20/2046

504‌

455‌

3.00%,

09/20/2051

1,513‌

1,354‌

3.00%,

01/01/2053

(o)

436‌

388‌

3.50%,

04/20/2046

108‌

100‌

3.50%,

10/20/2046

113‌

105‌

3.50%,

07/20/2047

481‌

448‌

3.50%,

01/01/2053

(o)

2,400‌

2,205‌

4.00%,

02/15/2042

57‌

55‌

4.00%,

06/20/2046

15‌

14‌

4.00%,

01/20/2048

651‌

636‌

4.00%,

01/01/2053

(o)

600‌

568‌

4.50%,

09/15/2039

327‌

324‌

4.50%,

11/15/2040

49‌

49‌

4.50%,

06/20/2048

3‌

3‌

4.50%,

01/01/2053

(o)

1,050‌

1,018‌

5.00%,

02/15/2034

102‌

104‌

5.00%,

10/15/2034

36‌

36‌

5.00%,

10/20/2039

17‌

17‌

5.00%,

07/20/2040

10‌

10‌

5.00%,

02/15/2042

42‌

43‌

5.50%,

12/20/2033

51‌

52‌

5.50%,

05/20/2035

5‌

6‌

5.50%,

12/20/2048

111‌

114‌

6.00%,

01/20/2029

8‌

9‌

6.00%,

07/20/2029

1‌

1‌

6.00%,

12/15/2033

8‌

8‌

6.00%,

12/20/2036

30‌

32‌

6.50%,

03/20/2028

1‌

1‌

6.50%,

05/20/2029

1‌

1‌

6.50%,

12/15/2032

185‌

191‌

7.00%,

03/15/2031

1‌

1‌

8.00%,

12/15/2030

3‌

3‌

$

15,752‌

U.S.

Treasury

-

14.50%

1.25%,

08/15/2031

3,650‌

2,960‌

1.38%,

11/15/2031

3,500‌

2,849‌

1.63%,

08/15/2029

1,100‌

954‌

1.75%,

08/15/2041

680‌

465‌

1.88%,

11/15/2051

375‌

237‌

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

180

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

(continued)

2.00%,

08/15/2051

(p)

$

2,900‌

$

1,899‌

2.25%,

11/15/2027

6,000‌

5,529‌

2.25%,

02/15/2052

2,325‌

1,617‌

2.88%,

05/15/2032

1,725‌

1,590‌

3.00%,

05/15/2045

1,140‌

939‌

3.00%,

11/15/2045

(q)

2,750‌

2,262‌

3.13%,

05/15/2048

3,210‌

2,698‌

3.75%,

11/15/2043

1,650‌

1,546‌

4.75%,

02/15/2037

1,435‌

1,568‌

$

27,113‌

U.S.

Treasury

Bill

-

3.08%

4.09%,

03/30/2023

(r)

235‌

232‌

4.46%,

05/18/2023

(r)

5,630‌

5,535‌

$

5,767‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

98,585‌

Total

Investments

$

202,572‌

Other

Assets

and

Liabilities

-  (8.31)%

(15,549‌)

TOTAL

NET

ASSETS

-

100.00%

$

187,023‌

(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

$894

or

0.48%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

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

$29,292

or

15.66%

of

net

assets.

(e)

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.

(f)

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.

(g)

Security

is

a

contingent

convertible

security,

("CoCo").

CoCo's

are

hybrid

debt

securities

that

may

convert

to

equity

or

have

their

principal

written

down

upon

occurrence

of

certain

"triggers".

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$535

or

0.29%

of

net

assets.

(h)

Non-income

producing

security

(i)

Security

is

an

Interest

Only

Strip.

(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

or

a

portion

of

the

security

was

on

loan.  At

the

end

of

the

period,

the

value

of

these

securities

totaled

$863

or

0.46%

of

net

assets.

(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,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

(n)

Rate

information

disclosed

is

based

on

an

average

weighted

rate

of

the

underlying

tranches

as

of

period

end.

(o)

Security

was

purchased

in

a

"to-be-announced"

("TBA")

transaction.

(p)

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

$1,676

or

0.90%

of

net

assets.

(q)

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

$305

or

0.16%

of

net

assets.

(r)

Rate

shown

is

the

discount

rate

of

the

original

purchase.

Portfolio

Summary  (unaudited)

Sector

Percent

Mortgage

Securities

38.42‌%

Government

18.84‌%

Financial

14.65‌%

Consumer,

Non-cyclical

5.98‌%

Asset

Backed

Securities

4.82‌%

Communications

4.43‌%

Industrial

4.03‌%

Consumer,

Cyclical

3.74‌%

Energy

3.70‌%

Utilities

3

.65‌%

Technology

3.01‌%

Money

Market

Funds

1.76‌%

Basic

Materials

1.28‌%

Other

Assets

and

Liabilities

(8.31‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

6,428‌

$

4,033‌

$

2,395‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

11,178‌

104,412‌

115,590‌

—‌

$

11,178‌

$

110,840‌

$

119,623‌

$

2,395‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

5‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

87‌

—‌

—‌

—‌

$

92‌

$

—‌

$

—‌

$

—‌

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;

March

2023

Short

42‌

$

4,716‌

$

16‌

US

2

Year

Note;

March

2023

Short

10‌

2,051‌

(2‌)

US

5

Year

Note;

March

2023

Long

30‌

3,238‌

(9‌)

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2022

See

accompanying

notes.

181

Futures

Contracts

(continued)

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

US

Long

Bond;

March

2023

Long

18‌

$

2,256‌

$

(20‌)

Total

$

(15‌)

Amounts

in

thousands

except

contracts.

Exchange

Cleared

Credit

Default

Swaps

Buy

Protection

Reference

Entity

Implied

Credit

Spread

as

of

December

31,

2022

(a)

(Pay)/

Receive

Fixed

Rate

Payment

Frequency

Maturity

Date

Notional

Amount

Upfront

Payments/

(Receipts)

Unrealized

Appreciation/

(Depreciation)

Fair

Value

CDX.EM.37

N/A

(1.00)%

Quarterly

06/20/2027

$

7,056‌

$

441‌

$

(87‌)

$

354‌

CDX.NA.HY.38

N/A

(5.00)%

Quarterly

06/20/2027

2,930‌

(65‌)

5‌

(60‌)

CDX.NA.HY.39

N/A

(5.00)%

Quarterly

12/20/2027

11,090‌

17‌

(82‌)

(65‌)

Total

$

393‌

$

(164‌)

$

229‌

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

December

31,

2022

See

accompanying

notes.

182

INVESTMENT

COMPANIES

-

100

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

15

.64

%

International

Equity

Index

Fund

(a)

5,372,966‌

$

52,548‌

MidCap

S&P

400

Index

Fund

(a)

1,622,714‌

31,886‌

SmallCap

S&P

600

Index

Fund

(a)

1,400,750‌

32,665‌

$

117,099‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

84

.39

%

Bond

Market

Index

Account

(a)

40,459,081‌

369,391‌

LargeCap

S&P

500

Index

Account

(a)

14,398,107‌

262,622‌

$

632,013‌

TOTAL

INVESTMENT

COMPANIES

$

749,112‌

Total

Investments

$

749,112‌

Other

Assets

and

Liabilities

-  (0.03)%

(

197‌

)

TOTAL

NET

ASSETS

-

100.00%

$

748,915‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

49

.32‌

%

Domestic

Equity

Funds

43

.69‌

%

International

Equity

Funds

7

.02‌

%

Other

Assets

and

Liabilities

(

0

.03‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

498,779‌

$

57,286‌

$

114,930‌

$

369,391‌

International

Equity

Index

Fund

71,164‌

9,205‌

16,503‌

52,548‌

LargeCap

S&P

500

Index

Account

353,415‌

78,652‌

74,600‌

262,622‌

MidCap

S&P

400

Index

Fund

41,040‌

8,543‌

10,632‌

31,886‌

SmallCap

S&P

600

Index

Fund

41,100‌

10,544‌

9,850‌

32,665‌

$

1,005,498‌

$

164,230‌

$

226,515‌

$

749,112‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

8,735‌

$

(

1,482‌

)

$

379‌

$

(

70,262‌

)

International

Equity

Index

Fund

1,390‌

(

95‌

)

58‌

(

11,223‌

)

LargeCap

S&P

500

Index

Account

4,301‌

12,079‌

29,564‌

(

106,924‌

)

MidCap

S&P

400

Index

Fund

429‌

625‌

1,658‌

(

7,690‌

)

SmallCap

S&P

600

Index

Fund

418‌

198‌

2,602‌

(

9,327‌

)

$

15,273‌

$

11,325‌

$

34,261‌

$

(

205,426‌

)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Balanced

Managed

Volatility

Account

December

31,

2022

See

accompanying

notes.

183

INVESTMENT

COMPANIES

-

100

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

15

.64

%

International

Equity

Index

Fund

(a)

1,014,641‌

$

9,923‌

MidCap

S&P

400

Index

Fund

(a)

306,423‌

6,021‌

SmallCap

S&P

600

Index

Fund

(a)

264,501‌

6,168‌

$

22,112‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

84

.39

%

Bond

Market

Index

Account

(a)

7,640,401‌

69,757‌

LargeCap

S&P

500

Managed

Volatility

Index

Account

(a)

3,571,016‌

49,566‌

$

119,323‌

TOTAL

INVESTMENT

COMPANIES

$

141,435‌

Total

Investments

$

141,435‌

Other

Assets

and

Liabilities

-  (0.03)%

(

42‌

)

TOTAL

NET

ASSETS

-

100.00%

$

141,393‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

49

.34‌

%

Domestic

Equity

Funds

43

.67‌

%

International

Equity

Funds

7

.02‌

%

Other

Assets

and

Liabilities

(

0

.03‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

91,392‌

$

12,366‌

$

20,626‌

$

69,757‌

International

Equity

Index

Fund

13,037‌

2,015‌

3,032‌

9,923‌

LargeCap

S&P

500

Managed

Volatility

Index

Account

64,646‌

14,773‌

13,549‌

49,566‌

MidCap

S&P

400

Index

Fund

7,518‌

1,827‌

2,014‌

6,021‌

SmallCap

S&P

600

Index

Fund

7,529‌

2,210‌

1,872‌

6,168‌

$

184,122‌

$

33,191‌

$

41,093‌

$

141,435‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

1,647‌

$

(

390‌

)

$

71‌

$

(

12,985‌

)

International

Equity

Index

Fund

263‌

(

9‌

)

11‌

(

2,088‌

)

LargeCap

S&P

500

Managed

Volatility

Index

Account

555‌

333‌

5,279‌

(

16,637‌

)

MidCap

S&P

400

Index

Fund

81‌

64‌

313‌

(

1,374‌

)

SmallCap

S&P

600

Index

Fund

79‌

50‌

491‌

(

1,749‌

)

$

2,625‌

$

48‌

$

6,165‌

$

(

34,833‌

)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Balanced

Volatility

Control

Account

December

31,

2022

See

accompanying

notes.

184

INVESTMENT

COMPANIES

-

100.00%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

9.44%

iShares

Core

S&P

500

ETF

50,932‌

$

19,568‌

Money

Market

Funds

-

10.54%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

21,849,093‌

21,849‌

Principal

Funds,

Inc.

Class

R-6

-

15.64%

International

Equity

Index

Fund

(a)

1,487,274‌

14,545‌

MidCap

S&P

400

Index

Fund

(a)

448,997‌

8,823‌

SmallCap

S&P

600

Index

Fund

(a)

387,522‌

9,037‌

$

32,405‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

64.38%

Bond

Market

Index

Account

(a)

11,199,902‌

102,255‌

LargeCap

S&P

500

Index

Account

(a)

1,708,049‌

31,155‌

$

133,410‌

TOTAL

INVESTMENT

COMPANIES

$

207,232‌

Total

Investments

$

207,232‌

Other

Assets

and

Liabilities

-  0.00%

(2‌)

TOTAL

NET

ASSETS

-

100.00%

$

207,230‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

49.34‌%

Domestic

Equity

Funds

23.66‌%

Money

Market

Funds

10.54‌%

Investment

Companies

9.44‌%

International

Equity

Funds

7.02‌%

Other

Assets

and

Liabilities

0.00‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

114,043‌

$

22,135‌

$

16,573‌

$

102,255‌

International

Equity

Index

Fund

16,269‌

3,935‌

3,039‌

14,545‌

LargeCap

S&P

500

Index

Account

34,629‌

13,760‌

7,299‌

31,155‌

MidCap

S&P

400

Index

Fund

9,382‌

3,441‌

2,287‌

8,823‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

37,124‌

15,275‌

21,849‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

13,645‌

18

7,799‌

201,444‌

—‌

SmallCap

S&P

600

Index

Fund

9,395‌

4,051‌

2,144‌

9,037‌

$

197,363‌

$

272,245‌

$

248,061‌

$

187,664‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

2,248‌

$

(113‌)

$

98‌

$

(17,237‌)

International

Equity

Index

Fund

382‌

(8‌)

16‌

(2,612‌)

LargeCap

S&P

500

Index

Account

475‌

24‌

3,261‌

(9,959‌)

MidCap

S&P

400

Index

Fund

118‌

16‌

456‌

(1,729‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

54‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

273‌

—‌

—‌

—‌

SmallCap

S&P

600

Index

Fund

115‌

4‌

715‌

(2,269‌)

$

3,665‌

$

(77‌)

$

4,546‌

$

(33,806‌)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Growth

Account

December

31,

2022

See

accompanying

notes.

185

INVESTMENT

COMPANIES

-

100

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

20

.72

%

International

Equity

Index

Fund

(a)

31,097,568‌

$

304,134‌

MidCap

S&P

400

Index

Fund

(a)

8,220,718‌

161,537‌

SmallCap

S&P

600

Index

Fund

(a)

7,097,263‌

165,508‌

$

631,179‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

79

.31

%

Bond

Market

Index

Account

(a)

114,736,784‌

1,047,547‌

LargeCap

S&P

500

Index

Account

(a)

75,001,544‌

1,368,029‌

$

2,415,576‌

TOTAL

INVESTMENT

COMPANIES

$

3,046,755‌

Total

Investments

$

3,046,755‌

Other

Assets

and

Liabilities

-  (0.03)%

(

818‌

)

TOTAL

NET

ASSETS

-

100.00%

$

3,045,937‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

55

.65‌

%

Fixed

Income

Funds

34

.39‌

%

International

Equity

Funds

9

.99‌

%

Other

Assets

and

Liabilities

(

0

.03‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

1,377,128‌

$

195,283‌

$

324,814‌

$

1,047,547‌

International

Equity

Index

Fund

401,011‌

52,844‌

85,225‌

304,134‌

LargeCap

S&P

500

Index

Account

1,792,336‌

346,634‌

280,252‌

1,368,029‌

MidCap

S&P

400

Index

Fund

202,357‌

36,467‌

41,578‌

161,537‌

SmallCap

S&P

600

Index

Fund

202,651‌

47,140‌

38,088‌

165,508‌

$

3,975,483‌

$

678,368‌

$

769,957‌

$

3,046,755‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

24,677‌

$

(

4,235‌

)

$

1,070‌

$

(

195,815‌

)

International

Equity

Index

Fund

8,043‌

21‌

335‌

(

64,517‌

)

LargeCap

S&P

500

Index

Account

22,313‌

24,319‌

153,395‌

(

515,008‌

)

MidCap

S&P

400

Index

Fund

2,188‌

370‌

8,448‌

(

36,079‌

)

SmallCap

S&P

600

Index

Fund

2,129‌

(

456‌

)

13,255‌

(

45,739‌

)

$

59,350‌

$

20,019‌

$

176,503‌

$

(

857,158‌

)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Growth

Managed

Volatility

Account

December

31,

2022

See

accompanying

notes.

186

INVESTMENT

COMPANIES

-

100

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

20

.73

%

International

Equity

Index

Fund

(a)

2,991,900‌

$

29,261‌

MidCap

S&P

400

Index

Fund

(a)

791,022‌

15,544‌

SmallCap

S&P

600

Index

Fund

(a)

682,953‌

15,926‌

$

60,731‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

79

.30

%

Bond

Market

Index

Account

(a)

11,038,330‌

100,780‌

LargeCap

S&P

500

Managed

Volatility

Index

Account

(a)

9,477,007‌

131,541‌

$

232,321‌

TOTAL

INVESTMENT

COMPANIES

$

293,052‌

Total

Investments

$

293,052‌

Other

Assets

and

Liabilities

-  (0.03)%

(

82‌

)

TOTAL

NET

ASSETS

-

100.00%

$

292,970‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

55

.64‌

%

Fixed

Income

Funds

34

.40‌

%

International

Equity

Funds

9

.99‌

%

Other

Assets

and

Liabilities

(

0

.03‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

134,856‌

$

19,344‌

$

33,908‌

$

100,780‌

International

Equity

Index

Fund

39,269‌

5,482‌

9,186‌

29,261‌

LargeCap

S&P

500

Managed

Volatility

Index

Account

175,242‌

31,730‌

31,350‌

131,541‌

MidCap

S&P

400

Index

Fund

19,816‌

3,876‌

4,677‌

15,544‌

SmallCap

S&P

600

Index

Fund

19,845‌

4,882‌

4,318‌

15,926‌

$

389,028‌

$

65,314‌

$

83,439‌

$

293,052‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

2,403‌

$

(

718‌

)

$

104‌

$

(

18,794‌

)

International

Equity

Index

Fund

775‌

(

4‌

)

33‌

(

6,300‌

)

LargeCap

S&P

500

Managed

Volatility

Index

Account

1,487‌

1,084‌

14,145‌

(

45,165‌

)

MidCap

S&P

400

Index

Fund

211‌

155‌

815‌

(

3,626‌

)

SmallCap

S&P

600

Index

Fund

205‌

120‌

1,278‌

(

4,603‌

)

$

5,081‌

$

637‌

$

16,375‌

$

(

78,488‌

)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Growth

Volatility

Control

Account

December

31,

2022

See

accompanying

notes.

187

INVESTMENT

COMPANIES

-

100.00%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

6.17%

iShares

Core

S&P

500

ETF

192,349‌

$

73,903‌

Money

Market

Funds

-

13.73%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

164,295,781‌

164,296‌

Principal

Funds,

Inc.

Class

R-6

-

20.73%

International

Equity

Index

Fund

(a)

12,224,858‌

119,559‌

MidCap

S&P

400

Index

Fund

(a)

3,230,258‌

63,475‌

SmallCap

S&P

600

Index

Fund

(a)

2,788,326‌

65,024‌

$

248,058‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

59.37%

Bond

Market

Index

Account

(a)

45,108,230‌

411,838‌

LargeCap

S&P

500

Index

Account

(a)

16,380,597‌

298,782‌

$

710,620‌

TOTAL

INVESTMENT

COMPANIES

$

1,196,877‌

Total

Investments

$

1,196,877‌

Other

Assets

and

Liabilities

-  0.00%

(46‌)

TOTAL

NET

ASSETS

-

100.00%

$

1,196,831‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

35.70‌%

Fixed

Income

Funds

34.41‌%

Money

Market

Funds

13.73‌%

International

Equity

Funds

9.99‌%

Investment

Companies

6.17‌%

Other

Assets

and

Liabilities

0.00‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

442,708‌

$

97,622‌

$

60,362‌

$

411,838‌

International

Equity

Index

Fund

128,898‌

30,844‌

19,434‌

119,559‌

LargeCap

S&P

500

Index

Account

320,078‌

125,136‌

52,793‌

298,782‌

MidCap

S&P

400

Index

Fund

65,042‌

22,788‌

12,254‌

63,475‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

240,218‌

75,922‌

164,296‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

98,839‌

1,167,117‌

1,265,956‌

—‌

SmallCap

S&P

600

Index

Fund

65,132‌

27,456‌

11,504‌

65,024‌

$

1,120,697‌

$

1,711,181‌

$

1,498,225‌

$

1,122,974‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

9,007‌

$

(333‌)

$

391‌

$

(67,797‌)

International

Equity

Index

Fund

3,151‌

9‌

131‌

(20,758‌)

LargeCap

S&P

500

Index

Account

4,526‌

208‌

31,115‌

(93,847‌)

MidCap

S&P

400

Index

Fund

854‌

53‌

3,294‌

(12,154‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

397‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

1,696‌

—‌

—‌

—‌

SmallCap

S&P

600

Index

Fund

831‌

13‌

5,169‌

(16,073‌)

$

20,462‌

$

(50‌)

$

40,100‌

$

(210,629‌)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Income

Account

December

31,

2022

See

accompanying

notes.

188

INVESTMENT

COMPANIES

-

100

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

10

.51

%

International

Equity

Index

Fund

(a)

1,046,772‌

$

10,237‌

MidCap

S&P

400

Index

Fund

(a)

414,684‌

8,149‌

SmallCap

S&P

600

Index

Fund

(a)

357,870‌

8,346‌

$

26,732‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

89

.52

%

Bond

Market

Index

Account

(a)

17,934,221‌

163,738‌

LargeCap

S&P

500

Index

Account

(a)

3,506,307‌

63,955‌

$

227,693‌

TOTAL

INVESTMENT

COMPANIES

$

254,425‌

Total

Investments

$

254,425‌

Other

Assets

and

Liabilities

-  (0.03)%

(

71‌

)

TOTAL

NET

ASSETS

-

100.00%

$

254,354‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

64

.37‌

%

Domestic

Equity

Funds

31

.63‌

%

International

Equity

Funds

4

.03‌

%

Other

Assets

and

Liabilities

(

0

.03‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

211,280‌

$

30,876‌

$

47,950‌

$

163,738‌

International

Equity

Index

Fund

13,249‌

2,464‌

3,391‌

10,237‌

LargeCap

S&P

500

Index

Account

82,251‌

25,588‌

22,001‌

63,955‌

MidCap

S&P

400

Index

Fund

10,028‌

2,999‌

3,168‌

8,149‌

SmallCap

S&P

600

Index

Fund

10,043‌

3,526‌

2,992‌

8,346‌

$

326,851‌

$

65,453‌

$

79,502‌

$

254,425‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

3,721‌

$

(

336‌

)

$

161‌

$

(

30,132‌

)

International

Equity

Index

Fund

269‌

(

1‌

)

11‌

(

2,084‌

)

LargeCap

S&P

500

Index

Account

1,006‌

1,905‌

6,921‌

(

23,788‌

)

MidCap

S&P

400

Index

Fund

109‌

38‌

420‌

(

1,748‌

)

SmallCap

S&P

600

Index

Fund

106‌

13‌

658‌

(

2,244‌

)

$

5,211‌

$

1,619‌

$

8,171‌

$

(

59,996‌

)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

International

Account

December

31,

2022

See

accompanying

notes.

189

INVESTMENT

COMPANIES

-

2

.06

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

2

.06

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

4,241,984‌

$

4,242‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

637,258‌

637‌

$

4,879‌

TOTAL

INVESTMENT

COMPANIES

$

4,879‌

COMMON

STOCKS

-

99

.46

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

0

.48

%

BAE

Systems

PLC

110,979‌

$

1,146‌

Apparel

-

2

.15

%

Gildan

Activewear

Inc

54,300‌

1,487‌

LVMH

Moet

Hennessy

Louis

Vuitton

SE

4,962‌

3,611‌

$

5,098‌

Automobile

Manufacturers

-

2

.42

%

Bayerische

Motoren

Werke

AG

17,270‌

1,529‌

Ferrari

NV

3,607‌

773‌

Kia

Corp

(d)

12,195‌

574‌

Toyota

Motor

Corp

209,400‌

2,857‌

$

5,733‌

Banks

-

12

.53

%

Bank

Leumi

Le-Israel

BM

140,462‌

1,170‌

Bank

Negara

Indonesia

Persero

Tbk

PT

2,179,300‌

1,291‌

Bank

of

Ireland

Group

PLC

191,128‌

1,821‌

Bank

Rakyat

Indonesia

Persero

Tbk

PT

8,369,208‌

2,653‌

Bankinter

SA

113,257‌

759‌

DBS

Group

Holdings

Ltd

122,100‌

3,091‌

DNB

Bank

ASA

41,758‌

825‌

FinecoBank

Banca

Fineco

SpA

50,395‌

837‌

Grupo

Financiero

Banorte

SAB

de

CV

174,759‌

1,258‌

HDFC

Bank

Ltd

ADR

13,020‌

891‌

ICICI

Bank

Ltd

ADR

148,865‌

3,259‌

Kasikornbank

PCL

192,300‌

817‌

Kotak

Mahindra

Bank

Ltd

69,799‌

1,536‌

Lloyds

Banking

Group

PLC

3,505,134‌

1,913‌

Nordea

Bank

Abp

191,304‌

2,049‌

PT

Bank

Central

Asia

Tbk

1,835,800‌

1,007‌

Resona

Holdings

Inc

147,000‌

807‌

Toronto-Dominion

Bank/The

39,900‌

2,583‌

United

Overseas

Bank

Ltd

48,000‌

1,099‌

$

29,666‌

Beverages

-

1

.64

%

Diageo

PLC

45,487‌

1,991‌

Kweichow

Moutai

Co

Ltd

4,799‌

1,193‌

Remy

Cointreau

SA

4,178‌

704‌

$

3,888‌

Biotechnology

-

1

.19

%

CSL

Ltd

8,083‌

1,576‌

Genmab

A/S

(d)

2,935‌

1,241‌

$

2,817‌

Building

Materials

-

1

.28

%

Beijing

Oriental

Yuhong

Waterproof

Technology

Co

Ltd

276,300‌

1,333‌

China

Lesso

Group

Holdings

Ltd

351,000‌

364‌

CRH

PLC

33,661‌

1,339‌

$

3,036‌

Chemicals

-

2

.14

%

Air

Liquide

SA

9,058‌

1,286‌

K+S

AG

33,316‌

657‌

Nutrien

Ltd

26,000‌

1,898‌

Shin-Etsu

Chemical

Co

Ltd

10,100‌

1,233‌

$

5,074‌

Commercial

Services

-

1

.14

%

Localiza

Rent

a

Car

SA

123,098‌

1,241‌

Localiza

Rent

a

Car

SA

-

Rights

(d)

538‌

1‌

TechnoPro

Holdings

Inc

35,900‌

956‌

TOPPAN

INC

33,400‌

493‌

$

2,691‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Computers

-

3

.04

%

Capgemini

SE

13,575‌

$

2,269‌

Infosys

Ltd

94,831‌

1,729‌

Logitech

International

SA

14,160‌

878‌

Teleperformance

6,340‌

1,516‌

WNS

Holdings

Ltd

ADR

(d)

9,892‌

791‌

$

7,183‌

Consumer

Products

-

0

.62

%

Reckitt

Benckiser

Group

PLC

21,036‌

1,458‌

Cosmetics

&

Personal

Care

-

2

.83

%

L'Oreal

SA

9,016‌

3,229‌

Unilever

PLC

68,562‌

3,461‌

$

6,690‌

Distribution

&

Wholesale

-

1

.51

%

ITOCHU

Corp

71,300‌

2,237‌

RS

GROUP

PLC

66,943‌

721‌

Vamos

Locacao

de

Caminhoes

Maquinas

e

Equipamentos

SA

261,334‌

625‌

$

3,583‌

Diversified

Financial

Services

-

2

.74

%

Bajaj

Finance

Ltd

12,208‌

967‌

Banco

BTG

Pactual

SA

188,600‌

855‌

Brookfield

Asset

Management

Ltd

(d)

20,267‌

580‌

Deutsche

Boerse

AG

6,180‌

1,064‌

Euronext

NV

(e)

7,604‌

563‌

Housing

Development

Finance

Corp

Ltd

41,354‌

1,315‌

London

Stock

Exchange

Group

PLC

13,215‌

1,136‌

$

6,480‌

Electric

-

1

.51

%

Iberdrola

SA

206,182‌

2,407‌

SSE

PLC

56,479‌

1,162‌

$

3,569‌

Electronics

-

1

.78

%

Halma

PLC

30,966‌

737‌

Hoya

Corp

19,796‌

1,896‌

Kyocera

Corp

15,200‌

755‌

Shimadzu

Corp

29,000‌

821‌

$

4,209‌

Engineering

&

Construction

-

0

.95

%

Anhui

Honglu

Steel

Construction

Group

Co

Ltd

120,898‌

510‌

Vinci

SA

17,521‌

1,747‌

$

2,257‌

Food

-

3

.98

%

Danone

SA

25,207‌

1,329‌

Dino

Polska

SA

(d),(e)

6,849‌

588‌

Nestle

SA

37,570‌

4,340‌

Seven

&

i

Holdings

Co

Ltd

61,100‌

2,618‌

Want

Want

China

Holdings

Ltd

818,000‌

545‌

$

9,420‌

Food

Service

-

0

.49

%

Compass

Group

PLC

50,024‌

1,155‌

Healthcare

-

Products

-

0

.69

%

Alcon

Inc

15,587‌

1,069‌

Sartorius

Stedim

Biotech

1,759‌

572‌

$

1,641‌

Healthcare

-

Services

-

0

.95

%

ICON

PLC

(d)

5,810‌

1,129‌

Lonza

Group

AG

2,264‌

1,111‌

$

2,240‌

Home

Builders

-

0

.56

%

Taylor

Wimpey

PLC

1,084,474‌

1,328‌

Home

Furnishings

-

0

.87

%

Haier

Smart

Home

Co

Ltd

415,800‌

1,411‌

Howden

Joinery

Group

PLC

94,349‌

637‌

$

2,048‌

Schedule

of

Investments

Diversified

International

Account

December

31,

2022

See

accompanying

notes.

190

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Insurance

-

5

.25

%

AIA

Group

Ltd

298,400‌

$

3,295‌

ASR

Nederland

NV

14,556‌

692‌

AXA

SA

68,860‌

1,918‌

Fairfax

Financial

Holdings

Ltd

2,900‌

1,718‌

MS&AD

Insurance

Group

Holdings

Inc

30,300‌

969‌

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

6,102‌

1,974‌

Prudential

PLC

66,317‌

904‌

Tryg

A/S

40,075‌

952‌

$

12,422‌

Internet

-

1

.21

%

JD.com

Inc

70,050‌

1,955‌

Pinduoduo

Inc

ADR

(d)

11,215‌

915‌

$

2,870‌

Investment

Companies

-

0

.23

%

EXOR

NV

(d)

7,460‌

546‌

Leisure

Products

&

Services

-

0

.96

%

Shimano

Inc

(f)

10,100‌

1,596‌

Yamaha

Motor

Co

Ltd

(f)

29,500‌

667‌

$

2,263‌

Machinery

-

Construction

&

Mining

-

1

.75

%

Mitsubishi

Electric

Corp

94,000‌

931‌

Mitsubishi

Heavy

Industries

Ltd

48,700‌

1,925‌

Weir

Group

PLC/The

64,042‌

1,288‌

$

4,144‌

Machinery

-

Diversified

-

2

.59

%

Atlas

Copco

AB

-

A

Shares

172,423‌

2,043‌

Ebara

Corp

20,100‌

716‌

Keyence

Corp

5,100‌

1,980‌

NARI

Technology

Co

Ltd

202,078‌

710‌

THK

Co

Ltd

36,600‌

692‌

$

6,141‌

Metal

Fabrication

&

Hardware

-

0

.42

%

APL

Apollo

Tubes

Ltd

74,699‌

983‌

Mining

-

3

.75

%

Anglo

American

PLC

45,749‌

1,791‌

BHP

Group

Ltd

93,169‌

2,886‌

Franco-Nevada

Corp

17,087‌

2,332‌

Rio

Tinto

Ltd

23,790‌

1,878‌

$

8,887‌

Oil

&

Gas

-

5

.58

%

BP

PLC

391,611‌

2,260‌

Equinor

ASA

70,095‌

2,519‌

Noble

Corp

PLC

(d)

17,880‌

674‌

Reliance

Industries

Ltd

47,864‌

1,469‌

Shell

PLC

112,686‌

3,177‌

Suncor

Energy

Inc

50,600‌

1,605‌

Tourmaline

Oil

Corp

30,000‌

1,514‌

$

13,218‌

Oil

&

Gas

Services

-

0

.91

%

Schlumberger

Ltd

40,136‌

2,146‌

Pharmaceuticals

-

7

.64

%

AstraZeneca

PLC

37,016‌

5,009‌

Merck

KGaA

5,349‌

1,032‌

Novo

Nordisk

A/S

42,052‌

5,711‌

Roche

Holding

AG

10,363‌

3,257‌

Sanofi

31,986‌

3,084‌

$

18,093‌

Pipelines

-

0

.20

%

Gaztransport

Et

Technigaz

SA

4,470‌

478‌

Private

Equity

-

2

.55

%

3i

Group

PLC

216,470‌

3,491‌

Brookfield

Corp

81,069‌

2,550‌

$

6,041‌

Real

Estate

-

0

.45

%

Mitsubishi

Estate

Co

Ltd

81,200‌

1,052‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

REITs

-

0

.54

%

CapitaLand

Integrated

Commercial

Trust

492,000‌

$

751‌

Segro

PLC

56,353‌

519‌

$

1,270‌

Retail

-

4

.92

%

ABC-Mart

Inc

9,400‌

531‌

Alimentation

Couche-Tard

Inc

59,746‌

2,626‌

Arezzo

Industria

e

Comercio

SA

29,200‌

433‌

Bosideng

International

Holdings

Ltd

1,330,000‌

630‌

Dollarama

Inc

17,900‌

1,047‌

JD

Sports

Fashion

PLC

931,148‌

1,415‌

Wal-Mart

de

Mexico

SAB

de

CV

850,522‌

3,006‌

Yum

China

Holdings

Inc

35,922‌

1,963‌

$

11,651‌

Semiconductors

-

7

.25

%

ASM

International

NV

3,112‌

789‌

ASML

Holding

NV

8,680‌

4,733‌

Renesas

Electronics

Corp

(d)

170,700‌

1,509‌

Samsung

Electronics

Co

Ltd

92,281‌

4,050‌

SK

Hynix

Inc

13,101‌

782‌

Taiwan

Semiconductor

Manufacturing

Co

Ltd

365,140‌

5,303‌

$

17,166‌

Software

-

0

.80

%

Dassault

Systemes

SE

28,851‌

1,037‌

Nexon

Co

Ltd

(f)

37,800‌

849‌

$

1,886‌

Telecommunications

-

1

.47

%

Nice

Ltd

ADR

(d),(f)

5,070‌

975‌

Nippon

Telegraph

&

Telephone

Corp

88,200‌

2,515‌

$

3,490‌

Toys,

Games

&

Hobbies

-

1

.12

%

Nintendo

Co

Ltd

63,000‌

2,649‌

Transportation

-

2

.38

%

Canadian

National

Railway

Co

24,028‌

2,854‌

Canadian

Pacific

Railway

Ltd

37,200‌

2,774‌

$

5,628‌

TOTAL

COMMON

STOCKS

$

235,434‌

Total

Investments

$

240,313‌

Other

Assets

and

Liabilities

-  (1.52)%

(

3,592‌

)

TOTAL

NET

ASSETS

-

100.00%

$

236,721‌

(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

$4,242

or

1.79%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

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

$1,151

or

0.49%

of

net

assets.

(f)

Security

or

a

portion

of

the

security

was

on

loan.  At

the

end

of

the

period,

the

value

of

these

securities

totaled

$4,045

or

1.71%

of

net

assets.

Schedule

of

Investments

Diversified

International

Account

December

31,

2022

See

accompanying

notes.

191

Portfolio

Summary  (unaudited)

Location

Percent

United

Kingdom

15

.50‌

%

Japan

14

.06‌

%

Canada

10

.80‌

%

France

9

.62‌

%

India

5

.49‌

%

China

4

.59‌

%

Switzerland

4

.49‌

%

Denmark

3

.33‌

%

United

States

3

.26‌

%

Netherlands

3

.09‌

%

Australia

2

.68‌

%

Germany

2

.65‌

%

Korea,

Republic

Of

2

.28‌

%

Taiwan

2

.24‌

%

Singapore

2

.09‌

%

Indonesia

2

.09‌

%

Ireland

1

.82‌

%

Mexico

1

.80‌

%

Hong

Kong

1

.66‌

%

Norway

1

.41‌

%

Spain

1

.34‌

%

Brazil

1

.33‌

%

Israel

0

.90‌

%

Finland

0

.87‌

%

Sweden

0

.86‌

%

Italy

0

.68‌

%

Thailand

0

.34‌

%

Poland

0

.25‌

%

Other

Assets

and

Liabilities

(

1

.52‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

1,819‌

$

1,182‌

$

637‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

115‌

87,181‌

87,296‌

—‌

$

115‌

$

89,000‌

$

88,478‌

$

637‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

1‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

54‌

—‌

—‌

—‌

$

55‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Equity

Income

Account

December

31,

2022

See

accompanying

notes.

192

INVESTMENT

COMPANIES

-

3.44%

Shares

Held

Value

(000's)

Money

Market

Funds

-

3.44%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

5,136,218‌

$

5,136‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b),(c)

18,363,139‌

18,363‌

$

23,499‌

TOTAL

INVESTMENT

COMPANIES

$

23,499‌

COMMON

STOCKS

-

97.94%

Shares

Held

Value

(000's)

Apparel

-

0.68%

NIKE

Inc

39,609‌

$

4,635‌

Automobile

Manufacturers

-

3.32%

Cummins

Inc

23,923‌

5,796‌

PACCAR

Inc

170,391‌

16,864‌

$

22,660‌

Automobile

Parts

&

Equipment

-

2.35%

Magna

International

Inc

285,410‌

16,034‌

Banks

-

10.01%

Bank

of

America

Corp

351,587‌

11,645‌

First

Republic

Bank/CA

71,683‌

8,737‌

JPMorgan

Chase

&

Co

125,321‌

16,806‌

Morgan

Stanley

208,049‌

17,688‌

PNC

Financial

Services

Group

Inc

/The

85,337‌

13,478‌

$

68,354‌

Beverages

-

1.74%

Coca-Cola

Co/The

186,726‌

11,878‌

Biotechnology

-

1.80%

Corteva

Inc

208,416‌

12,251‌

Chemicals

-

2.48%

Air

Products

and

Chemicals

Inc

39,334‌

12,125‌

PPG

Industries

Inc

38,063‌

4,786‌

$

16,911‌

Computers

-

1.40%

Apple

Inc

73,341‌

9,529‌

Diversified

Financial

Services

-

3.72%

BlackRock

Inc

22,796‌

16,154‌

Discover

Financial

Services

94,365‌

9,232‌

$

25,386‌

Electric

-

5.68%

Eversource

Energy

44,149‌

3,701‌

NextEra

Energy

Inc

152,884‌

12,781‌

Sempra

Energy

28,728‌

4,440‌

WEC

Energy

Group

Inc

96,609‌

9,058‌

Xcel

Energy

Inc

125,089‌

8,770‌

$

38,750‌

Food

-

2.85%

Hormel

Foods

Corp

313,881‌

14,297‌

Tyson

Foods

Inc

82,978‌

5,166‌

$

19,463‌

Healthcare

-

Products

-

4.82%

Abbott

Laboratories

129,766‌

14,247‌

Medtronic

PLC

144,540‌

11,233‌

STERIS

PLC

40,347‌

7,452‌

$

32,932‌

Healthcare

-

Services

-

1.02%

UnitedHealth

Group

Inc

13,102‌

6,947‌

Home

Builders

-

1.41%

DR

Horton

Inc

107,729‌

9,603‌

Insurance

-

3.67%

Chubb

Ltd

66,572‌

14,686‌

Fidelity

National

Financial

Inc

276,193‌

10,390‌

$

25,076‌

Machinery

-

Diversified

-

2.65%

Deere

&

Co

42,208‌

18,097‌

Media

-

3.04%

Cable

One

Inc

6,187‌

4,404‌

Comcast

Corp

-

Class

A

467,513‌

16,349‌

$

20,753‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Miscellaneous

Manufacturers

-

4.07%

Parker-Hannifin

Corp

57,624‌

$

16,768‌

Trane

Technologies

PLC

65,547‌

11,018‌

$

27,786‌

Oil

&

Gas

-

6

.00%

Chevron

Corp

63,468‌

11,392‌

EOG

Resources

Inc

108,149‌

14,008‌

Marathon

Petroleum

Corp

133,914‌

15,586‌

$

40,986‌

Pharmaceuticals

-

10.81%

Becton

Dickinson

and

Co

60,492‌

15,383‌

Eli

Lilly

&

Co

1,967‌

720‌

Merck

&

Co

Inc

168,388‌

18,683‌

Novartis

AG

ADR

160,813‌

14,589‌

Pfizer

Inc

207,598‌

10,637‌

Roche

Holding

AG

ADR

352,045‌

13,782‌

$

73,794‌

Pipelines

-

1.94%

Enterprise

Products

Partners

LP

548,561‌

13,231‌

Private

Equity

-

1.77%

KKR

&

Co

Inc

259,991‌

12,069‌

REITs

-

4.00%

Alexandria

Real

Estate

Equities

Inc

79,783‌

11,622‌

Digital

Realty

Trust

Inc

85,859‌

8,609‌

Realty

Income

Corp

111,635‌

7,081‌

$

27,312‌

Retail

-

3.54%

Costco

Wholesale

Corp

26,534‌

12,113‌

Starbucks

Corp

78,474‌

7,784‌

Target

Corp

28,386‌

4,231‌

$

24,128‌

Semiconductors

-

3.37%

Microchip

Technology

Inc

192,110‌

13,496‌

Taiwan

Semiconductor

Manufacturing

Co

Ltd

ADR

127,737‌

9,515‌

$

23,011‌

Software

-

3.56%

Fidelity

National

Information

Services

Inc

81,750‌

5,547‌

Microsoft

Corp

35,610‌

8,540‌

SAP

SE

ADR

(d)

99,011‌

10,217‌

$

24,304‌

Telecommunications

-

4.61%

BCE

Inc

358,651‌

15,763‌

Verizon

Communications

Inc

399,332‌

15,733‌

$

31,496‌

Transportation

-

1.63%

Expeditors

International

of

Washington

Inc

75,148‌

7,809‌

Union

Pacific

Corp

16,067‌

3,327‌

$

11,136‌

TOTAL

COMMON

STOCKS

$

668,512‌

Total

Investments

$

692,011‌

Other

Assets

and

Liabilities

-  (1.38)%

(9,444‌)

TOTAL

NET

ASSETS

-

100.00%

$

682,567‌

(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

$10,426

or

1.53%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

Security

or

a

portion

of

the

security

was

on

loan.  At

the

end

of

the

period,

the

value

of

these

securities

totaled

$10,115

or

1.48%

of

net

assets.

Schedule

of

Investments

Equity

Income

Account

December

31,

2022

See

accompanying

notes.

193

Portfolio

Summary  (unaudited)

Sector

Percent

Financial

23.17‌%

Consumer,

Non-cyclical

23.04‌%

Consumer,

Cyclical

11.30‌%

Industrial

8.35‌%

Technology

8.33‌%

Energy

7.94‌%

Communications

7.65‌%

Utilities

5.68‌%

Money

Market

Funds

3.44‌%

Basic

Materials

2.48‌%

Other

Assets

and

Liabilities

(1.38‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

39,896‌

$

21,533‌

$

18,363‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

11,037‌

206,158‌

217,195‌

—‌

$

11,037‌

$

246,054‌

$

238,728‌

$

18,363‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

31‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

171‌

—‌

—‌

—‌

$

202‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Global

Emerging

Markets

Account

December

31,

2022

See

accompanying

notes.

194

INVESTMENT

COMPANIES

-

4

.11

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

4

.11

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

351,534‌

$

352‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

2,443,336‌

2,443‌

$

2,795‌

TOTAL

INVESTMENT

COMPANIES

$

2,795‌

COMMON

STOCKS

-

96

.67

%

Shares

Held

Value

(000's)

Agriculture

-

0

.80

%

Muyuan

Foods

Co

Ltd

35,000‌

$

246‌

SLC

Agricola

SA

33,880‌

301‌

$

547‌

Airlines

-

0

.42

%

Air

Arabia

PJSC

484,117‌

283‌

Apparel

-

0

.82

%

Fila

Holdings

Corp

9,192‌

243‌

Youngone

Corp

(d)

8,526‌

318‌

$

561‌

Automobile

Manufacturers

-

2

.63

%

Ashok

Leyland

Ltd

203,109‌

352‌

Geely

Automobile

Holdings

Ltd

131,000‌

189‌

Hyundai

Motor

Co

3,327‌

398‌

Kia

Corp

(d)

11,066‌

521‌

Yadea

Group

Holdings

Ltd

(e)

196,000‌

326‌

$

1,786‌

Automobile

Parts

&

Equipment

-

0

.76

%

Fuyao

Glass

Industry

Group

Co

Ltd

(e)

54,400‌

227‌

Weichai

Power

Co

Ltd

221,000‌

292‌

$

519‌

Banks

-

9

.09

%

Bank

of

Jiangsu

Co

Ltd

203,190‌

214‌

Bank

Rakyat

Indonesia

Persero

Tbk

PT

2,807,276‌

890‌

Grupo

Financiero

Banorte

SAB

de

CV

98,000‌

705‌

HDFC

Bank

Ltd

30,088‌

590‌

Hong

Leong

Bank

Bhd

47,200‌

220‌

ICICI

Bank

Ltd

111,050‌

1,194‌

Kasikornbank

PCL

90,900‌

386‌

Kotak

Mahindra

Bank

Ltd

14,474‌

319‌

PT

Bank

Central

Asia

Tbk

1,314,300‌

721‌

Saudi

National

Bank/The

57,609‌

775‌

Vietnam

Technological

&

Commercial

Joint

Stock

Bank

(d)

142,800‌

168‌

$

6,182‌

Beverages

-

2

.71

%

Arca

Continental

SAB

de

CV

64,400‌

522‌

China

Resources

Beer

Holdings

Co

Ltd

70,000‌

487‌

Kweichow

Moutai

Co

Ltd

1,600‌

398‌

Tsingtao

Brewery

Co

Ltd

44,000‌

433‌

$

1,840‌

Building

Materials

-

1

.40

%

Beijing

Oriental

Yuhong

Waterproof

Technology

Co

Ltd

58,471‌

282‌

China

Lesso

Group

Holdings

Ltd

168,000‌

174‌

China

National

Building

Material

Co

Ltd

258,000‌

211‌

Voltas

Ltd

16,168‌

156‌

Xinyi

Glass

Holdings

Ltd

70,000‌

130‌

$

953‌

Chemicals

-

1

.25

%

Ganfeng

Lithium

Group

Co

Ltd

(e)

33,040‌

245‌

Navin

Fluorine

International

Ltd

3,005‌

148‌

Petronas

Chemicals

Group

Bhd

119,900‌

234‌

Supreme

Industries

Ltd

7,611‌

225‌

$

852‌

Coal

-

0

.55

%

Exxaro

Resources

Ltd

29,161‌

374‌

Commercial

Services

-

1

.67

%

Bidvest

Group

Ltd/The

18,819‌

236‌

GPS

Participacoes

e

Empreendimentos

SA

(d),(e)

64,788‌

146‌

Localiza

Rent

a

Car

SA

25,582‌

258‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Commercial

Services

(continued)

Localiza

Rent

a

Car

SA

-

Rights

(d)

111‌

$

—‌

MegaStudyEdu

Co

Ltd

4,537‌

287‌

Network

International

Holdings

PLC

(d),(e)

57,646‌

209‌

$

1,136‌

Computers

-

2

.37

%

CI&T

Inc

(d)

11,295‌

73‌

Globant

SA

(d)

1,321‌

222‌

Infosys

Ltd

45,558‌

831‌

TDCX

Inc

ADR

(d)

17,790‌

220‌

WNS

Holdings

Ltd

ADR

(d)

3,299‌

264‌

$

1,610‌

Distribution

&

Wholesale

-

1

.37

%

AKR

Corporindo

Tbk

PT

4,865,200‌

438‌

Vamos

Locacao

de

Caminhoes

Maquinas

e

Equipamentos

SA

206,360‌

494‌

$

932‌

Diversified

Financial

Services

-

4

.31

%

Bajaj

Finance

Ltd

5,329‌

422‌

Banco

BTG

Pactual

SA

77,512‌

351‌

BOC

Aviation

Ltd

(e)

34,800‌

290‌

CreditAccess

Grameen

Ltd

(d)

25,580‌

283‌

Fubon

Financial

Holding

Co

Ltd

345,361‌

632‌

Hong

Kong

Exchanges

&

Clearing

Ltd

5,700‌

245‌

KB

Financial

Group

Inc

18,450‌

707‌

$

2,930‌

Electric

-

0

.40

%

China

Longyuan

Power

Group

Corp

Ltd

222,000‌

270‌

Electrical

Components

&

Equipment

-

0

.99

%

Delta

Electronics

Inc

53,000‌

492‌

Frencken

Group

Ltd

260,800‌

184‌

$

676‌

Electronics

-

0

.80

%

Lotes

Co

Ltd

9,000‌

241‌

Voltronic

Power

Technology

Corp

6,000‌

301‌

$

542‌

Energy

-

Alternate

Sources

-

0

.26

%

Sao

Martinho

SA

34,582‌

174‌

Engineering

&

Construction

-

0

.44

%

Samsung

Engineering

Co

Ltd

(d)

17,055‌

302‌

Food

-

3

.09

%

Bid

Corp

Ltd

17,925‌

348‌

Dino

Polska

SA

(d),(e)

6,921‌

594‌

LT

Foods

Ltd

99,791‌

139‌

Nestle

India

Ltd

1,079‌

255‌

Tingyi

Cayman

Islands

Holding

Corp

220,000‌

388‌

Want

Want

China

Holdings

Ltd

565,000‌

377‌

$

2,101‌

Gas

-

0

.35

%

ENN

Natural

Gas

Co

Ltd

103,593‌

240‌

Hand

&

Machine

Tools

-

0

.24

%

Techtronic

Industries

Co

Ltd

14,500‌

161‌

Healthcare

-

Products

-

1

.31

%

Osstem

Implant

Co

Ltd

4,853‌

531‌

Shenzhen

Mindray

Bio-Medical

Electronics

Co

Ltd

7,900‌

360‌

$

891‌

Healthcare

-

Services

-

1

.03

%

Hygeia

Healthcare

Holdings

Co

Ltd

(d),(e)

38,600‌

275‌

IHH

Healthcare

Bhd

143,000‌

202‌

WuXi

AppTec

Co

Ltd

(e)

21,500‌

226‌

$

703‌

Home

Furnishings

-

0

.98

%

Haier

Smart

Home

Co

Ltd

141,800‌

481‌

Vestel

Beyaz

Esya

Sanayi

ve

Ticaret

AS

254,404‌

188‌

$

669‌

Schedule

of

Investments

Global

Emerging

Markets

Account

December

31,

2022

See

accompanying

notes.

195

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Insurance

-

3

.19

%

AIA

Group

Ltd

63,000‌

$

696‌

ICICI

Lombard

General

Insurance

Co

Ltd

(e)

16,850‌

251‌

ICICI

Prudential

Life

Insurance

Co

Ltd

(e)

35,601‌

194‌

PICC

Property

&

Casualty

Co

Ltd

576,000‌

545‌

Qualitas

Controladora

SAB

de

CV

(f)

109,500‌

484‌

$

2,170‌

Internet

-

13

.81

%

Alibaba

Group

Holding

Ltd

(d)

143,592‌

1,575‌

JD.com

Inc

31,407‌

877‌

Meituan

(d),(e)

55,500‌

1,230‌

My

EG

Services

Bhd

1,923,400‌

380‌

Naspers

Ltd

4,542‌

759‌

Pinduoduo

Inc

ADR

(d)

9,025‌

736‌

Tencent

Holdings

Ltd

81,200‌

3,443‌

Trip.com

Group

Ltd

ADR

(d)

11,377‌

391‌

$

9,391‌

Investment

Companies

-

0

.35

%

VEF

AB

(d),(f)

687,023‌

162‌

Yangzijiang

Financial

Holding

Ltd

(d)

293,200‌

77‌

$

239‌

Iron

&

Steel

-

2

.32

%

Gerdau

SA

ADR

68,444‌

379‌

Hunan

Valin

Steel

Co

Ltd

268,996‌

182‌

Severstal

PAO

(d)

9,865‌

—‌

Vale

SA

60,500‌

1,019‌

$

1,580‌

Leisure

Products

&

Services

-

0

.57

%

Eicher

Motors

Ltd

9,915‌

386‌

Lodging

-

0

.49

%

Galaxy

Entertainment

Group

Ltd

51,000‌

335‌

Machinery

-

Diversified

-

1

.30

%

NARI

Technology

Co

Ltd

94,192‌

331‌

Shanghai

Friendess

Electronic

Technology

Corp

Ltd

4,640‌

145‌

WEG

SA

55,900‌

408‌

$

884‌

Metal

Fabrication

&

Hardware

-

0

.75

%

APL

Apollo

Tubes

Ltd

20,651‌

272‌

Astral

Ltd

10,043‌

238‌

$

510‌

Mining

-

2

.16

%

Anglo

American

PLC

16,432‌

643‌

Impala

Platinum

Holdings

Ltd

40,023‌

503‌

Polyus

PJSC

(d)

108‌

—‌

Shandong

Gold

Mining

Co

Ltd

(e)

176,250‌

326‌

$

1,472‌

Miscellaneous

Manufacturers

-

0

.52

%

Elite

Material

Co

Ltd

27,000‌

149‌

Pidilite

Industries

Ltd

6,632‌

204‌

$

353‌

Oil

&

Gas

-

5

.02

%

Indian

Oil

Corp

Ltd

466,806‌

431‌

Petro

Rio

SA

(d)

49,200‌

347‌

Reliance

Industries

Ltd

62,576‌

1,921‌

Saudi

Arabian

Oil

Co

(e)

83,249‌

715‌

$

3,414‌

Pharmaceuticals

-

1

.22

%

Caplin

Point

Laboratories

Ltd

18,857‌

163‌

Grand

Pharmaceutical

Group

Ltd

326,000‌

191‌

Hansoh

Pharmaceutical

Group

Co

Ltd

(e)

142,000‌

268‌

Richter

Gedeon

Nyrt

9,417‌

209‌

$

831‌

Pipelines

-

1

.03

%

Gaztransport

Et

Technigaz

SA

6,560‌

701‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Real

Estate

-

1

.26

%

China

Overseas

Land

&

Investment

Ltd

119,000‌

$

311‌

China

Resources

Land

Ltd

70,000‌

319‌

Multiplan

Empreendimentos

Imobiliarios

SA

55,500‌

230‌

$

860‌

Retail

-

4

.73

%

Arezzo

Industria

e

Comercio

SA

11,600‌

172‌

Bosideng

International

Holdings

Ltd

664,000‌

315‌

El

Puerto

de

Liverpool

SAB

de

CV

36,411‌

215‌

Jumbo

SA

22,263‌

382‌

Lojas

Renner

SA

52,037‌

202‌

Mitra

Adiperkasa

Tbk

PT

(d)

3,033,500‌

281‌

Wal-Mart

de

Mexico

SAB

de

CV

210,300‌

743‌

Yifeng

Pharmacy

Chain

Co

Ltd

41,492‌

383‌

Yum

China

Holdings

Inc

9,350‌

522‌

$

3,215‌

Semiconductors

-

14

.30

%

ASML

Holding

NV

-

NY

Reg

Shares

717‌

392‌

Hana

Materials

Inc

4,593‌

120‌

MediaTek

Inc

26,000‌

526‌

Novatek

Microelectronics

Corp

16,400‌

167‌

Parade

Technologies

Ltd

4,000‌

100‌

RichWave

Technology

Corp

15,621‌

57‌

Samsung

Electronics

Co

Ltd

79,530‌

3,491‌

SK

Hynix

Inc

9,327‌

556‌

Taiwan

Semiconductor

Manufacturing

Co

Ltd

297,164‌

4,316‌

$

9,725‌

Shipbuilding

-

0

.44

%

Yangzijiang

Shipbuilding

Holdings

Ltd

293,200‌

298‌

Software

-

0

.89

%

NetEase

Inc

41,800‌

606‌

Telecommunications

-

1

.69

%

America

Movil

SAB

de

CV

ADR

27,444‌

499‌

KT

Corp

9,920‌

266‌

Millicom

International

Cellular

SA

(d)

11,414‌

145‌

ZTE

Corp

109,400‌

240‌

$

1,150‌

Transportation

-

0

.59

%

Container

Corp

Of

India

Ltd

17,839‌

159‌

MISC

Bhd

141,000‌

240‌

$

399‌

TOTAL

COMMON

STOCKS

$

65,753‌

PREFERRED

STOCKS

-

0

.02

%

Shares

Held

Value

(000's)

Diversified

Financial

Services

-

0

.02

%

Fubon

Financial

Holding

Co

Ltd

0.33%

6,701‌

$

11‌

TOTAL

PREFERRED

STOCKS

$

11‌

Total

Investments

$

68,559‌

Other

Assets

and

Liabilities

-  (0.80)%

(

544‌

)

TOTAL

NET

ASSETS

-

100.00%

$

68,015‌

(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

$352

or

0.52%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

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

$5,522

or

8.12%

of

net

assets.

(f)

Security

or

a

portion

of

the

security

was

on

loan.  At

the

end

of

the

period,

the

value

of

these

securities

totaled

$319

or

0.47%

of

net

assets.

Schedule

of

Investments

Global

Emerging

Markets

Account

December

31,

2022

See

accompanying

notes.

196

Portfolio

Summary  (unaudited)

Location

Percent

China

26

.09‌

%

India

13

.85‌

%

Korea,

Republic

Of

11

.37‌

%

Taiwan

10

.13‌

%

Brazil

6

.69‌

%

Hong

Kong

4

.96‌

%

Mexico

4

.67‌

%

United

States

4

.26‌

%

Indonesia

3

.43‌

%

South

Africa

3

.27‌

%

Saudi

Arabia

2

.19‌

%

Malaysia

2

.14‌

%

France

1

.03‌

%

United

Kingdom

0

.94‌

%

Poland

0

.87‌

%

Singapore

0

.86‌

%

United

Arab

Emirates

0

.73‌

%

Netherlands

0

.58‌

%

Thailand

0

.57‌

%

Greece

0

.56‌

%

Uruguay

0

.33‌

%

Hungary

0

.31‌

%

Turkey

0

.27‌

%

Vietnam

0

.25‌

%

Sweden

0

.24‌

%

Luxembourg

0

.21‌

%

Russian

Federation

0

.00‌

%

Other

Assets

and

Liabilities

(

0

.80‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

3,174‌

$

731‌

$

2,443‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

1,835‌

23,754‌

25,589‌

—‌

$

1,835‌

$

26,928‌

$

26,320‌

$

2,443‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

6‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

44‌

—‌

—‌

—‌

$

50‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2022

See

accompanying

notes.

197

INVESTMENT

COMPANIES

-

3.90%

Shares

Held

Value

(000's)

Money

Market

Funds

-

3.90%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

20‌

$

—‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

5,397,467‌

5,397‌

$

5,397‌

TOTAL

INVESTMENT

COMPANIES

$

5,397‌

BONDS

-

11.90%

Principal

Amount

(000's)

Value

(000's)

Automobile

Asset

Backed

Securities

-

4.15%

AmeriCredit

Automobile

Receivables

Trust

2022-2

4.96%,

12/18/2025

$

929‌

$

930‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

1.15%

Capital

One

Prime

Auto

Receivables

Trust

2021-1

0.32%,

02/18/2025

434‌

429‌

CarMax

Auto

Owner

Trust

2021-4

0.24%,

11/15/2024

120‌

119‌

CarMax

Auto

Owner

Trust

2022-1

0.91%,

02/18/2025

787‌

776‌

Carvana

Auto

Receivables

Trust

2021-P3

0.38%,

01/10/2025

410‌

406‌

Carvana

Auto

Receivables

Trust

2021-P4

0.82%,

04/10/2025

574‌

568‌

GM

Financial

Consumer

Automobile

Receivables

Trust

2021-4

0.28%,

11/18/2024

535‌

529‌

Santander

Drive

Auto

Receivables

Trust

2022-1

1.36%,

12/16/2024

331‌

331‌

Santander

Drive

Auto

Receivables

Trust

2022-3

2.76%,

03/17/2025

558‌

556‌

Santander

Drive

Auto

Receivables

Trust

2022-7

5.81%,

01/15/2026

930‌

932‌

Santander

Retail

Auto

Lease

Trust

2021-B

0.31%,

01/22/2024

(d)

128‌

128‌

World

Omni

Select

Auto

Trust

2021-A

0.29%,

02/18/2025

42‌

42‌

$

5,746‌

Commercial

Mortgage

Backed

Securities

-

0.41%

Ginnie

Mae

0.06%,

02/16/2055

(e),(f)

9,577‌

13‌

0.43%,

04/16/2047

(e),(f)

4,968‌

49‌

0.44%,

11/16/2052

(e),(f)

3,460‌

32‌

0.58%,

03/16/2060

(e),(f)

1,821‌

76‌

2.60%,

05/16/2059

227‌

195‌

2.60%,

03/16/2060

230‌

198‌

$

563‌

Mortgage

Backed

Securities

-

6.06%

EverBank

Mortgage

Loan

Trust

18-1

3.50%,

02/25/2048

(d),(f)

104‌

91‌

Fannie

Mae

Grantor

Trust

2005-T1

4.74%,

05/25/2035

113‌

109‌

1.00

x

1

Month

USD

LIBOR

+

0.35%

Fannie

Mae

Interest

Strip

3.50%,

12/25/2043

(e),(f)

617‌

89‌

Fannie

Mae

REMICS

0.00%,

06/25/2045

(e),(g)

1,351‌

43‌

1.00

x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.00%

1.66%,

09/25/2049

(e)

1,055‌

117‌

(1.00)

x

1

Month

USD

LIBOR

+

6.05%

3.00%,

10/25/2040

(e)

351‌

15‌

3.00%,

04/25/2042

129‌

125‌

3.00%,

05/25/2048

85‌

75‌

3.00%,

01/25/2051

(e)

1,952‌

315‌

4.50%,

04/25/2045

(e)

1,205‌

262‌

7.00%,

04/25/2032

55‌

57‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Mortgage

Backed

Securities

(continued)

Freddie

Mac

REMICS

0.00%,

05/15/2038

(e),(g)

$

1,308‌

$

46‌

1.00

x

12

Month

Treasury

Average

Index

+

0.00%

1.50%,

04/15/2028

331‌

309‌

1.66%,

11/25/2049

(e)

1,191‌

126‌

(1.00)

x

1

Month

USD

LIBOR

+

6.05%

3.00%,

11/15/2035

357‌

354‌

3.00%,

10/15/2041

19‌

19‌

3.00%,

04/15/2046

112‌

103‌

Ginnie

Mae

1.75%,

06/20/2046

(e)

331‌

36‌

(1.00)

x

1

Month

USD

LIBOR

+

6.10%

1.79%,

12/20/2043

(e)

758‌

77‌

(1.00)

x

1

Month

USD

LIBOR

+

6.14%

1.85%,

10/20/2045

(e)

885‌

97‌

(1.00)

x

1

Month

USD

LIBOR

+

6.20%

1.85%,

11/20/2047

(e)

635‌

63‌

(1.00)

x

1

Month

USD

LIBOR

+

6.20%

1.95%,

08/20/2050

(e)

2,343‌

295‌

(1.00)

x

1

Month

USD

LIBOR

+

6.30%

1.95%,

07/20/2051

(e)

1,552‌

197‌

(1.00)

x

1

Month

USD

LIBOR

+

6.30%

1.95%,

08/20/2051

(e)

1,793‌

222‌

(1.00)

x

1

Month

USD

LIBOR

+

6.30%

3.00%,

07/20/2050

(e)

1,287‌

189‌

3.00%,

09/20/2050

(e)

2,265‌

335‌

3.00%,

10/20/2050

(e)

1,624‌

250‌

3.00%,

11/20/2050

(e)

1,991‌

303‌

3.00%,

11/20/2050

(e)

3,370‌

505‌

3.00%,

12/20/2050

(e)

1,297‌

202‌

3.50%,

10/20/2049

(e)

1,934‌

323‌

4.00%,

02/20/2044

(e)

827‌

62‌

4.00%,

04/20/2044

(e)

552‌

47‌

4.00%,

01/20/2046

(e)

360‌

25‌

JP

Morgan

Mortgage

Trust

2016-4

3.50%,

10/25/2046

(d),(f)

126‌

111‌

JP

Morgan

Mortgage

Trust

2017-3

3.75%,

08/25/2047

(d),(f)

505‌

433‌

New

Residential

Mortgage

Loan

Trust

2014-1

5.00%,

01/25/2054

(d),(f)

929‌

878‌

New

Residential

Mortgage

Loan

Trust

2015-2

5.38%,

08/25/2055

(d),(f)

786‌

737‌

Sequoia

Mortgage

Trust

2013-2

3.63%,

02/25/2043

(f)

137‌

128‌

Sequoia

Mortgage

Trust

2017-3

3.75%,

04/25/2047

(d),(f)

405‌

350‌

Towd

Point

Mortgage

Trust

4.25%,

10/25/2053

(d),(f)

259‌

257‌

$

8,377‌

Other

Asset

Backed

Securities

-

1.28%

Chase

Funding

Trust

Series

2004-1

4.85%,

12/25/2033

73‌

68‌

1.00

x

1

Month

USD

LIBOR

+

0.46%

DLLST

2022-1

LLC

2.79%,

01/22/2024

(d)

1,000‌

992‌

HPEFS

Equipment

Trust

1.02%,

05/21/2029

(d)

729‌

717‌

$

1,777‌

TOTAL

BONDS

$

16,463‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

94.74%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

6.19%

2.00%,

10/01/2031

$

285‌

$

260‌

2.50%,

02/01/2028

215‌

205‌

3.00%,

02/01/2027

69‌

67‌

3.00%,

01/01/2031

223‌

213‌

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2022

See

accompanying

notes.

198

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

3.00%,

01/01/2033

$

419‌

$

401‌

3.00%,

03/01/2037

159‌

148‌

3.00%,

08/01/2042

277‌

253‌

3.00%,

10/01/2042

252‌

230‌

3.00%,

10/01/2042

490‌

446‌

3.00%,

05/01/2043

371‌

338‌

3.00%,

10/01/2046

447‌

401‌

3.50%,

02/01/2032

432‌

418‌

3.50%,

04/01/2042

632‌

592‌

3.50%,

05/01/2042

300‌

281‌

3.50%,

07/01/2042

955‌

897‌

3.50%,

02/01/2044

344‌

322‌

4.00%,

07/01/2042

453‌

443‌

4.00%,

01/01/2043

417‌

401‌

4.00%,

06/01/2043

419‌

403‌

4.00%,

10/01/2045

565‌

547‌

4.23%,

09/01/2032

6‌

6‌

1.00

x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.23%

4.50%,

11/01/2043

440‌

436‌

5.00%,

10/01/2025

28‌

28‌

5.00%,

02/01/2033

55‌

56‌

5.00%,

06/01/2033

96‌

96‌

5.00%,

01/01/2034

205‌

209‌

5.00%,

07/01/2035

44‌

45‌

5.00%,

07/01/2035

4‌

4‌

5.00%,

07/01/2035

10‌

11‌

5.00%,

10/01/2035

17‌

18‌

5.50%,

03/01/2033

47‌

48‌

5.50%,

04/01/2038

3‌

3‌

5.50%,

05/01/2038

11‌

11‌

6.00%,

05/01/2031

6‌

6‌

6.00%,

12/01/2031

5‌

5‌

6.00%,

11/01/2033

19‌

19‌

6.00%,

09/01/2034

21‌

22‌

6.00%,

02/01/2035

11‌

12‌

6.00%,

10/01/2036

20‌

21‌

6.00%,

03/01/2037

28‌

28‌

6.00%,

01/01/2038

38‌

40‌

6.00%,

04/01/2038

16‌

17‌

6.50%,

05/01/2023

1‌

1‌

6.50%,

04/01/2026

1‌

1‌

6.50%,

05/01/2026

1‌

1‌

6.50%,

01/01/2028

1‌

1‌

6.50%,

03/01/2028

1‌

1‌

6.50%,

10/01/2028

6‌

7‌

6.50%,

11/01/2028

1‌

1‌

6.50%,

12/01/2028

3‌

3‌

6.50%,

03/01/2029

1‌

1‌

6.50%,

07/01/2031

15‌

15‌

6.50%,

08/01/2031

4‌

4‌

6.50%,

10/01/2031

4‌

4‌

6.50%,

10/01/2031

6‌

6‌

6.50%,

12/01/2031

6‌

6‌

6.50%,

02/01/2032

6‌

6‌

6.50%,

05/01/2032

14‌

15‌

6.50%,

04/01/2035

3‌

3‌

7.00%,

09/01/2027

1‌

1‌

7.00%,

01/01/2028

11‌

11‌

7.00%,

04/01/2028

6‌

6‌

7.00%,

05/01/2028

1‌

1‌

7.00%,

10/01/2031

6‌

6‌

7.00%,

10/01/2031

3‌

3‌

7.00%,

04/01/2032

22‌

23‌

7.50%,

10/01/2030

4‌

4‌

7.50%,

02/01/2031

1‌

1‌

7.50%,

02/01/2031

4‌

5‌

8.00%,

10/01/2030

6‌

6‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

8.50%,

07/01/2029

$

12‌

$

12‌

$

8,562‌

Federal

National

Mortgage

Association

(FNMA)

-

0.44%

2.02%,

12/01/2032

8‌

8‌

1.00

x

12

Month

USD

LIBOR

+

1.64%

3.00%,

04/01/2043

462‌

415‌

3.95%,

12/01/2033

31‌

31‌

1.00

x

12

Month

USD

LIBOR

+

1.70%

5.50%,

05/01/2033

10‌

10‌

6.00%,

05/01/2037

117‌

119‌

6.50%,

08/01/2025

7‌

7‌

6.50%,

11/01/2032

10‌

10‌

7.00%,

08/01/2028

6‌

6‌

7.00%,

12/01/2028

6‌

7‌

$

613‌

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

-

63.19%

1.50%,

10/01/2036

1,771‌

1,533‌

2.00%,

02/01/2032

190‌

173‌

2.00%,

11/01/2035

880‌

785‌

2.00%,

11/01/2035

1,303‌

1,163‌

2.00%,

10/01/2050

825‌

677‌

2.00%,

03/01/2051

1,987‌

1,640‌

2.00%,

05/01/2051

4,608‌

3,786‌

2.00%,

09/01/2051

1,463‌

1,194‌

2.00%,

09/01/2051

3,341‌

2,735‌

2.00%,

11/01/2051

1,855‌

1,521‌

2.00%,

11/01/2051

2,947‌

2,418‌

2.00%,

11/01/2051

1,888‌

1,538‌

2.00%,

11/01/2051

1,558‌

1,277‌

2.00%,

12/01/2051

2,844‌

2,336‌

2.00%,

12/01/2051

2,769‌

2,271‌

2.00%,

01/01/2052

1,898‌

1,554‌

2.00%,

02/01/2052

2,147‌

1,759‌

2.50%,

06/01/2027

324‌

310‌

2.50%,

08/01/2028

259‌

246‌

2.50%,

12/01/2031

392‌

366‌

2.50%,

09/01/2032

264‌

247‌

2.50%,

08/01/2035

1,168‌

1,076‌

2.50%,

08/01/2050

2,865‌

2,456‌

2.50%,

07/01/2051

3,730‌

3,200‌

2.50%,

12/01/2051

1,010‌

866‌

2.50%,

12/01/2051

2,368‌

2,046‌

2.50%,

12/01/2051

2,638‌

2,262‌

2.50%,

01/01/2052

2,061‌

1,770‌

2.50%,

02/01/2052

1,902‌

1,623‌

2.50%,

04/01/2052

1,347‌

1,152‌

2.50%,

04/01/2052

5,227‌

4,484‌

2.50%,

05/01/2052

1,962‌

1,678‌

3.00%,

05/01/2029

310‌

298‌

3.00%,

08/01/2031

648‌

620‌

3.00%,

12/01/2034

441‌

414‌

3.00%,

10/01/2036

323‌

300‌

3.00%,

10/01/2042

819‌

745‌

3.00%,

10/01/2046

548‌

491‌

3.00%,

08/01/2049

253‌

224‌

3.00%,

10/01/2049

611‌

541‌

3.00%,

12/01/2049

587‌

519‌

3.00%,

01/01/2050

983‌

870‌

3.00%,

02/01/2050

902‌

798‌

3.00%,

07/01/2050

950‌

836‌

3.00%,

08/01/2050

734‌

647‌

3.00%,

09/01/2050

1,083‌

953‌

3.00%,

01/01/2053

(h)

2,950‌

2,588‌

3.50%,

08/01/2031

347‌

338‌

3.50%,

02/01/2033

532‌

514‌

3.50%,

09/01/2033

739‌

714‌

3.50%,

06/01/2039

223‌

209‌

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2022

See

accompanying

notes.

199

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%,

11/01/2042

$

628‌

$

587‌

3.50%,

12/01/2042

678‌

635‌

3.50%,

02/01/2043

286‌

268‌

3.50%,

03/01/2045

291‌

272‌

3.50%,

03/01/2045

561‌

523‌

3.50%,

09/01/2045

408‌

381‌

3.50%,

03/01/2047

497‌

465‌

3.50%,

11/01/2048

1,180‌

1,107‌

3.50%,

03/01/2050

1,335‌

1,250‌

3.50%,

01/01/2053

(h)

3,000‌

2,725‌

4.00%,

01/01/2034

211‌

204‌

4.00%,

10/01/2037

303‌

292‌

4.00%,

02/01/2041

640‌

620‌

4.00%,

02/01/2042

395‌

382‌

4.00%,

10/01/2043

128‌

123‌

4.00%,

08/01/2044

285‌

279‌

4.00%,

10/01/2044

775‌

757‌

4.00%,

11/01/2044

267‌

261‌

4.00%,

08/01/2045

415‌

405‌

4.00%,

08/01/2046

672‌

643‌

4.00%,

07/01/2047

561‌

545‌

4.00%,

10/01/2047

450‌

435‌

4.00%,

01/01/2053

(h)

3,500‌

3,282‌

4.50%,

08/01/2039

775‌

768‌

4.50%,

09/01/2043

819‌

810‌

4.50%,

10/01/2043

464‌

455‌

4.50%,

11/01/2043

455‌

448‌

4.50%,

09/01/2045

322‌

318‌

4.50%,

10/01/2045

470‌

465‌

4.50%,

11/01/2045

684‌

676‌

5.00%,

05/01/2033

525‌

535‌

5.00%,

04/01/2035

49‌

50‌

5.00%,

04/01/2035

52‌

53‌

5.00%,

07/01/2035

2‌

2‌

5.00%,

02/01/2038

214‌

218‌

5.00%,

02/01/2040

614‌

630‌

5.00%,

07/01/2041

478‌

484‌

5.50%,

06/01/2033

28‌

29‌

5.50%,

02/01/2037

2‌

2‌

5.50%,

03/01/2038

46‌

48‌

6.00%,

11/01/2028

9‌

9‌

6.00%,

12/01/2031

2‌

2‌

6.00%,

01/01/2033

24‌

25‌

6.00%,

07/01/2037

48‌

50‌

6.00%,

11/01/2037

3‌

3‌

6.00%,

12/01/2037

6‌

6‌

6.00%,

03/01/2038

33‌

34‌

6.50%,

07/01/2025

5‌

5‌

6.50%,

02/01/2026

1‌

1‌

6.50%,

05/01/2026

1‌

1‌

6.50%,

07/01/2028

6‌

6‌

6.50%,

03/01/2029

3‌

3‌

6.50%,

06/01/2031

8‌

8‌

6.50%,

01/01/2032

3‌

3‌

6.50%,

04/01/2032

1‌

1‌

6.50%,

08/01/2032

5‌

5‌

6.50%,

02/01/2033

6‌

6‌

6.50%,

12/01/2036

10‌

10‌

6.50%,

07/01/2037

12‌

13‌

6.50%,

07/01/2037

3‌

3‌

6.50%,

02/01/2038

18‌

19‌

7.00%,

10/01/2029

5‌

5‌

7.00%,

05/01/2031

3‌

3‌

7.00%,

11/01/2031

8‌

8‌

8.00%,

06/01/2030

1‌

1‌

$

87,423‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Government

National

Mortgage

Association

(GNMA)

-

19.76%

2.00%,

08/20/2050

$

1,338‌

$

1,130‌

2.00%,

01/20/2051

1,606‌

1,355‌

2.00%,

02/20/2051

3,497‌

2,933‌

2.50%,

06/20/2050

2,786‌

2,433‌

2.50%,

05/20/2051

2,685‌

2,334‌

2.50%,

01/01/2053

(h)

250‌

217‌

3.00%,

11/15/2042

328‌

301‌

3.00%,

12/15/2042

726‌

665‌

3.00%,

02/15/2043

795‌

728‌

3.00%,

05/15/2043

945‌

865‌

3.00%,

07/20/2045

482‌

439‌

3.00%,

07/20/2046

252‌

228‌

3.00%,

08/20/2046

553‌

500‌

3.00%,

09/20/2046

673‌

610‌

3.00%,

12/20/2046

345‌

312‌

3.00%,

02/20/2047

439‌

395‌

3.00%,

08/20/2047

262‌

236‌

3.50%,

01/15/2043

621‌

584‌

3.50%,

05/15/2043

611‌

575‌

3.50%,

06/20/2043

399‌

372‌

3.50%,

04/20/2045

275‌

257‌

3.50%,

06/20/2046

46‌

42‌

3.50%,

02/20/2047

488‌

454‌

3.50%,

05/20/2047

495‌

473‌

3.50%,

11/20/2047

331‌

317‌

3.50%,

01/01/2053

(h)

2,000‌

1,837‌

4.00%,

08/15/2041

371‌

358‌

4.00%,

07/20/2047

348‌

342‌

4.00%,

01/20/2048

1,101‌

1,075‌

4.00%,

01/01/2053

(h)

900‌

851‌

4.50%,

07/15/2040

187‌

186‌

4.50%,

01/01/2053

(h)

1,000‌

970‌

5.00%,

09/15/2033

2‌

2‌

5.00%,

02/15/2034

132‌

135‌

5.00%,

09/15/2039

17‌

17‌

5.50%,

11/15/2033

18‌

18‌

5.50%,

05/20/2035

54‌

56‌

5.50%,

01/01/2053

(h)

1,000‌

1,006‌

6.00%,

04/20/2026

2‌

1‌

6.00%,

05/20/2026

1‌

1‌

6.00%,

03/20/2028

1‌

1‌

6.00%,

06/20/2028

7‌

7‌

6.00%,

07/20/2028

3‌

3‌

6.00%,

02/20/2029

3‌

3‌

6.00%,

03/20/2029

6‌

6‌

6.00%,

07/20/2029

6‌

7‌

6.00%,

07/20/2033

54‌

57‌

6.00%,

01/01/2053

(h)

1,500‌

1,524‌

6.50%,

12/20/2025

3‌

2‌

6.50%,

02/20/2026

2‌

2‌

6.50%,

03/20/2031

4‌

4‌

6.50%,

04/20/2031

5‌

5‌

7.00%,

01/15/2028

2‌

2‌

7.00%,

01/15/2028

1‌

1‌

7.00%,

01/15/2028

1‌

1‌

7.00%,

03/15/2028

38‌

38‌

7.00%,

01/15/2029

8‌

8‌

7.00%,

03/15/2029

3‌

3‌

7.00%,

05/15/2031

4‌

4‌

7.00%,

09/15/2031

19‌

19‌

7.00%,

06/15/2032

32‌

33‌

8.00%,

08/15/2026

1‌

1‌

$

27,341‌

U.S.

Treasury

-

1.80%

1.38%,

11/15/2031

250‌

204‌

1.88%,

11/15/2051

250‌

158‌

4.50%,

02/15/2036

1,000‌

1,067‌

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2022

See

accompanying

notes.

200

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

(continued)

5.25%,

11/15/2028

$

1,000‌

$

1,059‌

$

2,488‌

U.S.

Treasury

Bill

-

3.36%

4.09%,

03/30/2023

(

i

)

4,215‌

4,172‌

4.46%,

05/18/2023

(

i

)

475‌

467‌

$

4,639‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

131,066‌

Total

Investments

$

152,926‌

Other

Assets

and

Liabilities

-  (10.54)%

(14,580‌)

TOTAL

NET

ASSETS

-

100.00%

$

138,346‌

(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

$0

or

0.00%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

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

$4,693

or

3.39%

of

net

assets.

(e)

Security

is

an

Interest

Only

Strip.

(f)

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.

(g)

Non-income

producing

security

(h)

Security

was

purchased

in

a

"to-be-announced"

("TBA")

transaction.

(

i

)

Rate

shown

is

the

discount

rate

of

the

original

purchase.

Portfolio

Summary  (unaudited)

Sector

Percent

Mortgage

Securities

96.05‌%

Asset

Backed

Securities

5.43‌%

Government

5.16‌%

Money

Market

Funds

3.90‌%

Other

Assets

and

Liabilities

(10.54‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

6,033‌

$

636‌

$

5,397‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

17,990‌

136,128‌

154,118‌

—‌

$

17,990‌

$

142,161‌

$

154,754‌

$

5,397‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

10‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

52‌

—‌

—‌

—‌

$

62‌

$

—‌

$

—‌

$

—‌

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;

March

2023

Long

60‌

$

6,738‌

$

(36‌)

US

5

Year

Note;

March

2023

Short

111‌

11,980‌

79‌

US

Long

Bond;

March

2023

Long

64‌

8,022‌

(70‌)

Total

$

(27‌)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2022

See

accompanying

notes.

201

INVESTMENT

COMPANIES

-

3

.02

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

0

.29

%

iShares

Russell

1000

Growth

ETF

5,900‌

$

1,264‌

Money

Market

Funds

-

2

.73

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

51,896‌

52‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

11,973,746‌

11,974‌

$

12,026‌

TOTAL

INVESTMENT

COMPANIES

$

13,290‌

CONVERTIBLE

PREFERRED

STOCKS

-

0

.16

%

Shares

Held

Value

(000's)

Automobile

Manufacturers

-

0

.03

%

Waymo

LLC

Series

A-2

0.00%

(d),(e),(f)

2,489‌

$

117‌

Chemicals

-

0

.03

%

Sila

Nano

Series

F

0.00%

(d),(e),(f)

4,929‌

154‌

Software

-

0

.10

%

Nuro

-

Series

C

0.00%

(d),(e),(f)

17,442‌

242‌

Rappi

Inc

-

Series

E

0.00%

(d),(e),(f)

5,133‌

185‌

$

427‌

TOTAL

CONVERTIBLE

PREFERRED

STOCKS

$

698‌

COMMON

STOCKS

-

96

.79

%

Shares

Held

Value

(000's)

Advertising

-

0

.15

%

Trade

Desk

Inc/The

(d)

14,923‌

$

669‌

Aerospace

&

Defense

-

0

.99

%

Boeing

Co/The

(d)

499‌

95‌

HEICO

Corp

121‌

19‌

HEICO

Corp

-

Class

A

213‌

26‌

Howmet

Aerospace

Inc

107‌

4‌

L3Harris

Technologies

Inc

18,294‌

3,809‌

Lockheed

Martin

Corp

686‌

334‌

Northrop

Grumman

Corp

50‌

27‌

Spirit

AeroSystems

Holdings

Inc

291‌

9‌

TransDigm

Group

Inc

58‌

36‌

$

4,359‌

Agriculture

-

0

.00

%

Darling

Ingredients

Inc

(d)

38‌

2‌

Airlines

-

0

.01

%

Delta

Air

Lines

Inc

(d)

1,859‌

61‌

Apparel

-

0

.41

%

Deckers

Outdoor

Corp

(d)

68‌

27‌

NIKE

Inc

15,279‌

1,788‌

Skechers

USA

Inc

(d)

64‌

3‌

Tapestry

Inc

107‌

4‌

$

1,822‌

Automobile

Manufacturers

-

0

.81

%

Lucid

Group

Inc

(d),(g)

1,461‌

10‌

Rivian

Automotive

Inc

(d)

140,796‌

2,595‌

Tesla

Inc

(d)

7,577‌

933‌

$

3,538‌

Automobile

Parts

&

Equipment

-

0

.01

%

Allison

Transmission

Holdings

Inc

214‌

9‌

Aptiv

PLC

(d)

195‌

18‌

$

27‌

Banks

-

0

.01

%

First

Citizens

BancShares

Inc/NC

8‌

6‌

Signature

Bank/New

York

NY

11‌

1‌

SVB

Financial

Group

(d)

108‌

25‌

Western

Alliance

Bancorp

184‌

11‌

$

43‌

Beverages

-

1

.49

%

Boston

Beer

Co

Inc/The

(d)

27‌

9‌

Brown-Forman

Corp

-

A

Shares

84‌

5‌

Brown-Forman

Corp

-

B

Shares

46,579‌

3,059‌

Coca-Cola

Co/The

8,586‌

546‌

Monster

Beverage

Corp

(d)

22,579‌

2,293‌

PepsiCo

Inc

3,425‌

619‌

$

6,531‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Biotechnology

-

0

.72

%

Alnylam

Pharmaceuticals

Inc

(d)

360‌

$

86‌

Amgen

Inc

1,315‌

345‌

Certara

Inc

(d)

220‌

3‌

Exelixis

Inc

(d)

801‌

13‌

Guardant

Health

Inc

(d)

281‌

8‌

Horizon

Therapeutics

Plc

(d)

605‌

69‌

Illumina

Inc

(d)

1,812‌

366‌

Incyte

Corp

(d)

457‌

37‌

Ionis

Pharmaceuticals

Inc

(d)

386‌

15‌

Maravai

LifeSciences

Holdings

Inc

(d)

343‌

5‌

Moderna

Inc

(d)

59‌

11‌

Novavax

Inc

(d),(g)

241‌

2‌

Regeneron

Pharmaceuticals

Inc

(d)

44‌

32‌

Sarepta

Therapeutics

Inc

(d)

247‌

32‌

Seagen

Inc

(d)

398‌

51‌

Ultragenyx

Pharmaceutical

Inc

(d)

153‌

7‌

Vertex

Pharmaceuticals

Inc

(d)

7,138‌

2,061‌

$

3,143‌

Building

Materials

-

0

.02

%

Armstrong

World

Industries

Inc

77‌

5‌

Eagle

Materials

Inc

92‌

12‌

Fortune

Brands

Innovations

Inc

139‌

8‌

Louisiana-Pacific

Corp

27‌

2‌

Martin

Marietta

Materials

Inc

17‌

6‌

Masco

Corp

43‌

2‌

Masterbrand

Inc

(d)

139‌

1‌

Trex

Co

Inc

(d)

329‌

14‌

Vulcan

Materials

Co

189‌

33‌

$

83‌

Chemicals

-

0

.12

%

Albemarle

Corp

175‌

38‌

Axalta

Coating

Systems

Ltd

(d)

168‌

4‌

CF

Industries

Holdings

Inc

579‌

49‌

Chemours

Co/The

265‌

8‌

Ecolab

Inc

641‌

93‌

FMC

Corp

123‌

15‌

Linde

PLC

306‌

100‌

Mosaic

Co/The

133‌

6‌

PPG

Industries

Inc

366‌

46‌

RPM

International

Inc

24‌

2‌

Sherwin-Williams

Co/The

701‌

167‌

Valvoline

Inc

513‌

17‌

$

545‌

Commercial

Services

-

3

.88

%

Affirm

Holdings

Inc

(d)

17,393‌

168‌

Automatic

Data

Processing

Inc

1,123‌

268‌

Booz

Allen

Hamilton

Holding

Corp

381‌

40‌

Bright

Horizons

Family

Solutions

Inc

(d)

51‌

3‌

Cintas

Corp

18,570‌

8,387‌

CoStar

Group

Inc

(d)

161‌

13‌

Driven

Brands

Holdings

Inc

(d)

13‌

—‌

Equifax

Inc

175‌

34‌

Euronet

Worldwide

Inc

(d)

104‌

10‌

FleetCor

Technologies

Inc

(d)

213‌

39‌

FTI

Consulting

Inc

(d)

45‌

7‌

Gartner

Inc

(d)

224‌

75‌

Global

Payments

Inc

21,237‌

2,109‌

GXO

Logistics

Inc

(d)

41‌

2‌

H&R

Block

Inc

382‌

14‌

MarketAxess

Holdings

Inc

107‌

30‌

Mister

Car

Wash

Inc

(d)

203‌

2‌

Moody's

Corp

441‌

123‌

Morningstar

Inc

64‌

14‌

Paylocity

Holding

Corp

(d)

114‌

22‌

PayPal

Holdings

Inc

(d)

1,037‌

74‌

Quanta

Services

Inc

224‌

32‌

Robert

Half

International

Inc

273‌

20‌

Rollins

Inc

632‌

23‌

S&P

Global

Inc

15,947‌

5,341‌

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2022

See

accompanying

notes.

202

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Commercial

Services

(continued)

Shift4

Payments

Inc

(d)

148‌

$

8‌

Toast

Inc

(d)

746‌

14‌

TransUnion

408‌

23‌

United

Rentals

Inc

(d)

94‌

34‌

Verisk

Analytics

Inc

455‌

80‌

WEX

Inc

(d)

93‌

15‌

WillScot

Mobile

Mini

Holdings

Corp

(d)

317‌

14‌

$

17,038‌

Computers

-

5

.06

%

Accenture

PLC

-

Class

A

5,950‌

1,587‌

Apple

Inc

148,372‌

19,277‌

Crowdstrike

Holdings

Inc

(d)

615‌

65‌

Dell

Technologies

Inc

124‌

5‌

EPAM

Systems

Inc

(d)

159‌

52‌

Fortinet

Inc

(d)

17,152‌

839‌

Genpact

Ltd

273‌

13‌

Globant

SA

(d)

117‌

20‌

HP

Inc

1,354‌

36‌

International

Business

Machines

Corp

1,762‌

248‌

KBR

Inc

257‌

14‌

NCR

Corp

(d)

24‌

—‌

NetApp

Inc

644‌

39‌

Pure

Storage

Inc

(d)

809‌

22‌

Thoughtworks

Holding

Inc

(d)

301‌

3‌

Zscaler

Inc

(d)

247‌

28‌

$

22,248‌

Consumer

Products

-

0

.04

%

Avery

Dennison

Corp

148‌

27‌

Church

&

Dwight

Co

Inc

316‌

25‌

Clorox

Co/The

298‌

42‌

Kimberly-Clark

Corp

584‌

79‌

$

173‌

Cosmetics

&

Personal

Care

-

1

.99

%

Colgate-Palmolive

Co

1,492‌

118‌

Estee

Lauder

Cos

Inc/The

32,934‌

8,171‌

Olaplex

Holdings

Inc

(d)

388‌

2‌

Procter

&

Gamble

Co/The

2,949‌

447‌

$

8,738‌

Distribution

&

Wholesale

-

0

.07

%

Copart

Inc

(d)

1,239‌

76‌

Core

&

Main

Inc

(d)

74‌

1‌

Fastenal

Co

1,686‌

80‌

IAA

Inc

(d)

321‌

13‌

Pool

Corp

113‌

34‌

SiteOne

Landscape

Supply

Inc

(d)

80‌

9‌

Watsco

Inc

51‌

13‌

WESCO

International

Inc

(d)

70‌

9‌

WW

Grainger

Inc

132‌

73‌

$

308‌

Diversified

Financial

Services

-

4

.80

%

American

Express

Co

109‌

16‌

Ameriprise

Financial

Inc

199‌

62‌

Apollo

Global

Management

Inc

1,079‌

69‌

Blue

Owl

Capital

Inc

1,217‌

13‌

Charles

Schwab

Corp/The

2,473‌

206‌

Credit

Acceptance

Corp

(d)

1‌

—‌

LPL

Financial

Holdings

Inc

231‌

50‌

Mastercard

Inc

42,701‌

14,848‌

Raymond

James

Financial

Inc

49‌

5‌

Rocket

Cos

Inc

(g)

235‌

2‌

Tradeweb

Markets

Inc

200‌

13‌

Upstart

Holdings

Inc

(d),(g)

50‌

1‌

UWM

Holdings

Corp

(g)

298‌

1‌

Visa

Inc

27,900‌

5,797‌

Western

Union

Co/The

404‌

5‌

$

21,088‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Electric

-

0

.01

%

AES

Corp/The

352‌

$

10‌

Vistra

Corp

664‌

16‌

$

26‌

Electrical

Components

&

Equipment

-

0

.70

%

ChargePoint

Holdings

Inc

(d),(g)

780‌

7‌

Emerson

Electric

Co

552‌

53‌

Generac

Holdings

Inc

(d)

29,792‌

2,999‌

Universal

Display

Corp

127‌

14‌

$

3,073‌

Electronics

-

0

.83

%

Agilent

Technologies

Inc

782‌

117‌

Allegion

plc

203‌

21‌

Amphenol

Corp

41,529‌

3,162‌

Arrow

Electronics

Inc

(d)

11‌

1‌

Coherent

Corp

(d)

55‌

2‌

Honeywell

International

Inc

578‌

124‌

Jabil

Inc

318‌

22‌

Keysight

Technologies

Inc

(d)

486‌

83‌

Mettler-Toledo

International

Inc

(d)

64‌

93‌

National

Instruments

Corp

60‌

2‌

Vontier

Corp

307‌

6‌

$

3,633‌

Energy

-

Alternate

Sources

-

0

.03

%

Enphase

Energy

Inc

(d)

383‌

102‌

Enviva

Inc

96‌

5‌

Plug

Power

Inc

(d),(g)

755‌

9‌

$

116‌

Engineering

&

Construction

-

0

.00

%

AECOM

28‌

3‌

TopBuild

Corp

(d)

79‌

12‌

$

15‌

Entertainment

-

0

.24

%

Caesars

Entertainment

Inc

(d)

406‌

17‌

Churchill

Downs

Inc

104‌

22‌

DraftKings

Inc

(d)

1,036‌

12‌

Live

Nation

Entertainment

Inc

(d)

14,093‌

982‌

Madison

Square

Garden

Sports

Corp

31‌

6‌

Six

Flags

Entertainment

Corp

(d)

126‌

3‌

Vail

Resorts

Inc

110‌

26‌

$

1,068‌

Environmental

Control

-

0

.04

%

Republic

Services

Inc

42‌

6‌

Tetra

Tech

Inc

64‌

9‌

Waste

Management

Inc

1,127‌

177‌

$

192‌

Food

-

0

.06

%

Grocery

Outlet

Holding

Corp

(d)

23‌

—‌

Hershey

Co/The

371‌

86‌

Kellogg

Co

409‌

29‌

Lamb

Weston

Holdings

Inc

422‌

38‌

Performance

Food

Group

Co

(d)

138‌

8‌

Pilgrim's

Pride

Corp

(d)

84‌

2‌

Sysco

Corp

1,488‌

114‌

$

277‌

Gas

-

0

.00

%

National

Fuel

Gas

Co

25‌

2‌

Hand

&

Machine

Tools

-

0

.01

%

Lincoln

Electric

Holdings

Inc

161‌

23‌

MSA

Safety

Inc

45‌

7‌

$

30‌

Healthcare

-

Products

-

9

.51

%

10X

Genomics

Inc

(d)

242‌

9‌

Abbott

Laboratories

663‌

73‌

Align

Technology

Inc

(d)

16,507‌

3,481‌

Avantor

Inc

(d)

60,732‌

1,281‌

Baxter

International

Inc

226‌

11‌

Bio-Techne

Corp

452‌

37‌

Bruker

Corp

313‌

21‌

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2022

See

accompanying

notes.

203

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Healthcare

-

Products

(continued)

Danaher

Corp

129‌

$

34‌

Edwards

Lifesciences

Corp

(d)

90,334‌

6,740‌

Exact

Sciences

Corp

(d)

99‌

5‌

Globus

Medical

Inc

(d)

12‌

1‌

ICU

Medical

Inc

(d)

13‌

2‌

IDEXX

Laboratories

Inc

(d)

242‌

99‌

Insulet

Corp

(d)

5,139‌

1,513‌

Intuitive

Surgical

Inc

(d)

55,067‌

14,612‌

Masimo

Corp

(d)

105‌

16‌

Natera

Inc

(d)

265‌

11‌

Novocure

Ltd

(d)

305‌

22‌

Penumbra

Inc

(d)

103‌

23‌

Repligen

Corp

(d)

114‌

19‌

ResMed

Inc

423‌

88‌

Stryker

Corp

19,641‌

4,802‌

Tandem

Diabetes

Care

Inc

(d)

185‌

8‌

Thermo

Fisher

Scientific

Inc

15,955‌

8,787‌

Waters

Corp

(d)

172‌

59‌

West

Pharmaceutical

Services

Inc

217‌

51‌

$

41,805‌

Healthcare

-

Services

-

3

.17

%

agilon

health

Inc

(d),(g)

533‌

9‌

Catalent

Inc

(d)

168‌

7‌

Charles

River

Laboratories

International

Inc

(d)

136‌

30‌

Chemed

Corp

15‌

8‌

DaVita

Inc

(d)

163‌

12‌

Elevance

Health

Inc

215‌

110‌

Ginkgo

Bioworks

Holdings

Inc

(d)

587‌

1‌

HCA

Healthcare

Inc

39‌

9‌

Humana

Inc

5,187‌

2,657‌

IQVIA

Holdings

Inc

(d)

541‌

111‌

Molina

Healthcare

Inc

(d)

129‌

43‌

Signify

Health

Inc

(d)

26‌

1‌

Sotera

Health

Co

(d)

309‌

2‌

Syneos

Health

Inc

(d)

56‌

2‌

Teladoc

Health

Inc

(d)

54‌

1‌

UnitedHealth

Group

Inc

20,626‌

10,936‌

$

13,939‌

Home

Builders

-

0

.02

%

DR

Horton

Inc

489‌

43‌

NVR

Inc

(d)

6‌

28‌

PulteGroup

Inc

260‌

12‌

Toll

Brothers

Inc

162‌

8‌

$

91‌

Housewares

-

0

.00

%

Scotts

Miracle-Gro

Co/The

49‌

2‌

Insurance

-

0

.16

%

Aon

PLC

566‌

170‌

Arch

Capital

Group

Ltd

(d)

338‌

21‌

Arthur

J

Gallagher

&

Co

70‌

13‌

Assurant

Inc

11‌

1‌

Brown

&

Brown

Inc

59‌

3‌

Erie

Indemnity

Co

56‌

14‌

Everest

Re

Group

Ltd

35‌

12‌

Lincoln

National

Corp

110‌

3‌

Markel

Corp

(d)

9‌

12‌

Marsh

&

McLennan

Cos

Inc

1,297‌

215‌

Progressive

Corp/The

1,489‌

193‌

RenaissanceRe

Holdings

Ltd

69‌

13‌

Ryan

Specialty

Holdings

Inc

(d)

241‌

10‌

$

680‌

Internet

-

14

.32

%

Airbnb

Inc

(d)

1,100‌

94‌

Alphabet

Inc

-

A

Shares

(d)

164,867‌

14,546‌

Alphabet

Inc

-

C

Shares

(d)

94,394‌

8,375‌

Amazon.com

Inc

(d)

218,589‌

18,362‌

Booking

Holdings

Inc

(d)

1,292‌

2,604‌

CDW

Corp/DE

396‌

71‌

Chewy

Inc

(d)

106,989‌

3,967‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Internet

(continued)

Coupang

Inc

(d)

64,387‌

$

947‌

DoorDash

Inc

-

Class

A

(d)

641‌

31‌

eBay

Inc

207‌

9‌

Etsy

Inc

(d)

367‌

44‌

Expedia

Group

Inc

(d)

436‌

38‌

Gen

Digital

Inc

582‌

12‌

GoDaddy

Inc

(d)

64‌

5‌

IAC

Inc

(d)

10,595‌

470‌

Lyft

Inc

(d)

774‌

9‌

Match

Group

Inc

(d)

96,019‌

3,984‌

Meta

Platforms

Inc

(d)

20,434‌

2,459‌

Netflix

Inc

(d)

8,821‌

2,601‌

Okta

Inc

(d)

60‌

4‌

Opendoor

Technologies

Inc

(d)

390‌

—‌

Palo

Alto

Networks

Inc

(d)

861‌

120‌

Pinterest

Inc

(d)

360‌

9‌

Roku

Inc

(d)

101‌

4‌

Shopify

Inc

(d)

85,507‌

2,968‌

Spotify

Technology

SA

(d)

13,165‌

1,039‌

TripAdvisor

Inc

(d)

32‌

1‌

Uber

Technologies

Inc

(d)

4,872‌

120‌

VeriSign

Inc

(d)

32‌

7‌

Wayfair

Inc

(d)

147‌

5‌

Wix.com

Ltd

(d)

131‌

10‌

Zillow

Group

Inc

-

A

Shares

(d)

18‌

1‌

Zillow

Group

Inc

-

C

Shares

(d)

36‌

1‌

$

62,917‌

Leisure

Products

&

Services

-

0

.17

%

Brunswick

Corp/DE

37‌

3‌

Norwegian

Cruise

Line

Holdings

Ltd

(d)

109‌

1‌

Peloton

Interactive

Inc

(d)

87,983‌

699‌

Planet

Fitness

Inc

(d)

178‌

14‌

Polaris

Inc

120‌

12‌

YETI

Holdings

Inc

(d)

253‌

10‌

$

739‌

Lodging

-

0

.05

%

Choice

Hotels

International

Inc

95‌

11‌

Hilton

Worldwide

Holdings

Inc

568‌

72‌

Las

Vegas

Sands

Corp

(d)

356‌

17‌

Marriott

International

Inc/MD

778‌

116‌

Travel

+

Leisure

Co

168‌

6‌

Wyndham

Hotels

&

Resorts

Inc

179‌

13‌

Wynn

Resorts

Ltd

(d)

39‌

3‌

$

238‌

Machinery

-

Construction

&

Mining

-

0

.07

%

BWX

Technologies

Inc

112‌

7‌

Caterpillar

Inc

1,329‌

318‌

Vertiv

Holdings

Co

171‌

2‌

$

327‌

Machinery

-

Diversified

-

2

.26

%

AGCO

Corp

27‌

4‌

Cognex

Corp

468‌

22‌

Deere

&

Co

809‌

347‌

Graco

Inc

332‌

22‌

IDEX

Corp

30,309‌

6,920‌

Ingersoll

Rand

Inc

47,250‌

2,469‌

Middleby

Corp/The

(d)

14‌

2‌

Nordson

Corp

40‌

10‌

Otis

Worldwide

Corp

150‌

12‌

Rockwell

Automation

Inc

227‌

58‌

Toro

Co/The

305‌

35‌

Xylem

Inc/NY

74‌

8‌

$

9,909‌

Media

-

0

.06

%

Cable

One

Inc

11‌

8‌

Charter

Communications

Inc

(d)

315‌

107‌

FactSet

Research

Systems

Inc

110‌

44‌

Liberty

Broadband

Corp

-

A

Shares

(d)

27‌

2‌

Liberty

Broadband

Corp

-

C

Shares

(d)

163‌

12‌

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2022

See

accompanying

notes.

204

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Media

(continued)

Liberty

Media

Corp-Liberty

Formula

One

-

A

Shares

(d)

6‌

$

—‌

Liberty

Media

Corp-Liberty

Formula

One

-

C

Shares

(d)

71‌

4‌

Liberty

Media

Corp-Liberty

SiriusXM

-

A

Shares

73‌

3‌

Liberty

Media

Corp-Liberty

SiriusXM

-

C

Shares

(d)

135‌

5‌

Nexstar

Media

Group

Inc

11‌

2‌

Walt

Disney

Co/The

(d)

354‌

31‌

Warner

Bros

Discovery

Inc

(d)

5,029‌

48‌

World

Wrestling

Entertainment

Inc

128‌

9‌

$

275‌

Metal

Fabrication

&

Hardware

-

0

.00

%

Advanced

Drainage

Systems

Inc

184‌

15‌

Valmont

Industries

Inc

10‌

3‌

$

18‌

Mining

-

0

.00

%

MP

Materials

Corp

(d)

268‌

6‌

Royal

Gold

Inc

15‌

2‌

Southern

Copper

Corp

168‌

10‌

$

18‌

Miscellaneous

Manufacturers

-

0

.08

%

A

O

Smith

Corp

96‌

6‌

Axon

Enterprise

Inc

(d)

152‌

25‌

Carlisle

Cos

Inc

125‌

29‌

Donaldson

Co

Inc

65‌

4‌

General

Electric

Co

175‌

15‌

Illinois

Tool

Works

Inc

806‌

178‌

Parker-Hannifin

Corp

84‌

24‌

Trane

Technologies

PLC

393‌

66‌

$

347‌

Office

&

Business

Equipment

-

0

.00

%

Zebra

Technologies

Corp

(d)

62‌

16‌

Oil

&

Gas

-

0

.15

%

Antero

Resources

Corp

(d)

553‌

17‌

Coterra

Energy

Inc

375‌

9‌

Devon

Energy

Corp

933‌

57‌

Diamondback

Energy

Inc

293‌

40‌

EOG

Resources

Inc

1,253‌

162‌

Hess

Corp

645‌

92‌

Occidental

Petroleum

Corp

1,922‌

121‌

Ovintiv

Inc

520‌

26‌

PDC

Energy

Inc

138‌

9‌

Pioneer

Natural

Resources

Co

382‌

87‌

Range

Resources

Corp

456‌

12‌

Southwestern

Energy

Co

(d)

280‌

2‌

Texas

Pacific

Land

Corp

17‌

40‌

$

674‌

Oil

&

Gas

Services

-

0

.01

%

Halliburton

Co

1,192‌

47‌

Packaging

&

Containers

-

0

.02

%

Ardagh

Metal

Packaging

SA

172‌

1‌

Ball

Corp

360‌

18‌

Berry

Global

Group

Inc

178‌

11‌

Crown

Holdings

Inc

299‌

25‌

Graphic

Packaging

Holding

Co

671‌

15‌

Sealed

Air

Corp

421‌

21‌

$

91‌

Pharmaceuticals

-

6

.74

%

AbbVie

Inc

5,181‌

837‌

AmerisourceBergen

Corp

452‌

75‌

Becton

Dickinson

and

Co

11,475‌

2,918‌

Cigna

Corp

23,068‌

7,643‌

Daiichi

Sankyo

Co

Ltd

ADR

31,886‌

1,027‌

Dexcom

Inc

(d)

47,792‌

5,412‌

Eli

Lilly

&

Co

11,717‌

4,286‌

McKesson

Corp

81‌

31‌

Merck

&

Co

Inc

3,107‌

345‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Pharmaceuticals

(continued)

Neurocrine

Biosciences

Inc

(d)

273‌

$

33‌

Zoetis

Inc

47,884‌

7,017‌

$

29,624‌

Pipelines

-

0

.03

%

Cheniere

Energy

Inc

417‌

62‌

New

Fortress

Energy

Inc

142‌

6‌

ONEOK

Inc

148‌

10‌

Targa

Resources

Corp

654‌

48‌

$

126‌

Private

Equity

-

0

.04

%

Ares

Management

Corp

449‌

31‌

Blackstone

Inc

2,051‌

152‌

$

183‌

Real

Estate

-

0

.01

%

CBRE

Group

Inc

(d)

455‌

35‌

REITs

-

1

.41

%

American

Tower

Corp

1,043‌

221‌

Apartment

Income

REIT

Corp

45‌

2‌

Camden

Property

Trust

30‌

3‌

Crown

Castle

Inc

1,264‌

171‌

Equinix

Inc

204‌

134‌

Equity

LifeStyle

Properties

Inc

313‌

20‌

Extra

Space

Storage

Inc

47‌

7‌

Iron

Mountain

Inc

626‌

31‌

Lamar

Advertising

Co

225‌

21‌

Public

Storage

363‌

102‌

SBA

Communications

Corp

19,296‌

5,409‌

Simon

Property

Group

Inc

463‌

54‌

$

6,175‌

Retail

-

5

.72

%

Advance

Auto

Parts

Inc

17‌

2‌

AutoZone

Inc

(d)

50‌

123‌

Best

Buy

Co

Inc

180‌

14‌

BJ's

Wholesale

Club

Holdings

Inc

(d)

242‌

16‌

Burlington

Stores

Inc

(d)

178‌

36‌

CarMax

Inc

(d)

59‌

4‌

Carvana

Co

(d),(g)

322‌

2‌

Chipotle

Mexican

Grill

Inc

(d)

1,094‌

1,518‌

Costco

Wholesale

Corp

16,091‌

7,346‌

Darden

Restaurants

Inc

259‌

36‌

Dollar

General

Corp

12,538‌

3,088‌

Dollar

Tree

Inc

(d)

190‌

27‌

Domino's

Pizza

Inc

75‌

26‌

Five

Below

Inc

(d)

157‌

28‌

Floor

&

Decor

Holdings

Inc

(d)

304‌

21‌

Freshpet

Inc

(d)

75‌

4‌

Genuine

Parts

Co

33‌

6‌

Home

Depot

Inc/The

1,757‌

555‌

Leslie's

Inc

(d)

440‌

5‌

Lowe's

Cos

Inc

1,572‌

313‌

Lululemon

Athletica

Inc

(d)

20,363‌

6,524‌

McDonald's

Corp

526‌

139‌

Nordstrom

Inc

299‌

5‌

Ollie's

Bargain

Outlet

Holdings

Inc

(d)

11‌

1‌

O'Reilly

Automotive

Inc

(d)

74‌

62‌

RH

(d)

21‌

6‌

Ross

Stores

Inc

39,181‌

4,548‌

Starbucks

Corp

1,210‌

120‌

Target

Corp

748‌

111‌

TJX

Cos

Inc/The

3,403‌

271‌

Tractor

Supply

Co

325‌

73‌

Ulta

Beauty

Inc

(d)

148‌

69‌

Victoria's

Secret

&

Co

(d)

170‌

6‌

Wendy's

Co/The

505‌

11‌

Williams-Sonoma

Inc

158‌

18‌

Yum!

Brands

Inc

95‌

12‌

$

25,146‌

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2022

See

accompanying

notes.

205

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Semiconductors

-

5

.04

%

Advanced

Micro

Devices

Inc

(d)

21,610‌

$

1,400‌

Allegro

MicroSystems

Inc

(d)

206‌

6‌

Analog

Devices

Inc

304‌

50‌

Applied

Materials

Inc

2,518‌

245‌

ASML

Holding

NV

-

NY

Reg

Shares

7,287‌

3,982‌

Broadcom

Inc

1,158‌

647‌

Entegris

Inc

429‌

28‌

GLOBALFOUNDRIES

Inc

(d),(g)

45‌

2‌

KLA

Corp

415‌

156‌

Lam

Research

Corp

401‌

169‌

Lattice

Semiconductor

Corp

(d)

392‌

25‌

Microchip

Technology

Inc

1,335‌

94‌

Micron

Technology

Inc

610‌

31‌

Monolithic

Power

Systems

Inc

133‌

47‌

NVIDIA

Corp

63,648‌

9,302‌

NXP

Semiconductors

NV

32,918‌

5,202‌

ON

Semiconductor

Corp

(d)

785‌

49‌

QUALCOMM

Inc

3,285‌

361‌

Teradyne

Inc

413‌

36‌

Texas

Instruments

Inc

1,823‌

301‌

$

22,133‌

Shipbuilding

-

0

.00

%

Huntington

Ingalls

Industries

Inc

26‌

6‌

Software

-

24

.32

%

Adobe

Inc

(d)

17,808‌

5,993‌

Alteryx

Inc

(d)

186‌

9‌

ANSYS

Inc

(d)

134‌

32‌

AppLovin

Corp

(d),(g)

641‌

7‌

Aspen

Technology

Inc

(d)

79‌

16‌

Atlassian

Corp

(d)

29,911‌

3,849‌

Autodesk

Inc

(d)

36,099‌

6,746‌

Bentley

Systems

Inc

486‌

18‌

Black

Knight

Inc

(d)

50‌

3‌

Broadridge

Financial

Solutions

Inc

307‌

41‌

Cadence

Design

Systems

Inc

(d)

13,869‌

2,228‌

CCC

Intelligent

Solutions

Holdings

Inc

(d)

232‌

2‌

Ceridian

HCM

Holding

Inc

(d)

82‌

5‌

Cloudflare

Inc

(d)

828‌

37‌

Confluent

Inc

(d)

384‌

9‌

Coupa

Software

Inc

(d)

123‌

10‌

Datadog

Inc

(d)

772‌

57‌

Definitive

Healthcare

Corp

(d)

57‌

1‌

DocuSign

Inc

(d)

572‌

32‌

DoubleVerify

Holdings

Inc

(d)

172‌

4‌

Doximity

Inc

(d)

158‌

5‌

Dropbox

Inc

-

A

Shares

(d)

713‌

16‌

Dynatrace

Inc

(d)

575‌

22‌

Elastic

NV

(d)

224‌

11‌

Electronic

Arts

Inc

51‌

6‌

Fair

Isaac

Corp

(d)

71‌

42‌

Fiserv

Inc

(d)

60,527‌

6,118‌

Five9

Inc

(d)

200‌

14‌

HashiCorp

Inc

(d)

6,620‌

181‌

HubSpot

Inc

(d)

135‌

39‌

Informatica

Inc

(d)

28‌

—‌

Intuit

Inc

38,553‌

15,005‌

Jack

Henry

&

Associates

Inc

210‌

37‌

Jamf

Holding

Corp

(d)

177‌

4‌

Magic

Leap

Inc

(d),(e),(f)

371‌

7‌

Manhattan

Associates

Inc

(d)

111‌

13‌

Microsoft

Corp

153,111‌

36,720‌

MongoDB

Inc

(d)

4,653‌

916‌

MSCI

Inc

172‌

80‌

nCino

Inc

(d)

40‌

1‌

New

Relic

Inc

(d)

164‌

9‌

Nutanix

Inc

(d)

358‌

9‌

Oracle

Corp

3,078‌

252‌

Palantir

Technologies

Inc

(d)

5,388‌

35‌

Paychex

Inc

944‌

109‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Software

(continued)

Paycom

Software

Inc

(d)

149‌

$

46‌

Pegasystems

Inc

122‌

4‌

Playtika

Holding

Corp

(d)

243‌

2‌

Procore

Technologies

Inc

(d)

150‌

7‌

PTC

Inc

(d)

305‌

37‌

RingCentral

Inc

(d)

250‌

9‌

ROBLOX

Corp

(d)

1,310‌

37‌

Roper

Technologies

Inc

17,705‌

7,650‌

Salesforce

Inc

(d)

20,578‌

2,728‌

SentinelOne

Inc

(d)

398‌

6‌

ServiceNow

Inc

(d)

31,084‌

12,069‌

Smartsheet

Inc

(d)

373‌

15‌

Snowflake

Inc

-

Class

A

(d)

841‌

121‌

Splunk

Inc

(d)

476‌

41‌

Stripe

Inc

-

Class

B

(d),(e),(f)

5,754‌

106‌

Synopsys

Inc

(d)

446‌

142‌

Take-Two

Interactive

Software

Inc

(d)

393‌

41‌

Teradata

Corp

(d)

174‌

6‌

Twilio

Inc

(d)

200‌

10‌

Tyler

Technologies

Inc

(d)

104‌

33‌

UiPath

Inc

(d)

121‌

2‌

Unity

Software

Inc

(d)

489‌

14‌

Veeva

Systems

Inc

(d)

29,811‌

4,811‌

VMware

Inc

(d)

301‌

37‌

Workday

Inc

(d)

585‌

98‌

Zoom

Video

Communications

Inc

(d)

369‌

25‌

ZoomInfo

Technologies

Inc

(d)

792‌

24‌

$

106,871‌

Telecommunications

-

0

.57

%

Arista

Networks

Inc

(d)

20,559‌

2,495‌

Corning

Inc

140‌

4‌

Ubiquiti

Inc

4‌

1‌

$

2,500‌

Toys,

Games

&

Hobbies

-

0

.00

%

Mattel

Inc

(d)

507‌

9‌

Transportation

-

0

.36

%

CH

Robinson

Worldwide

Inc

92‌

8‌

CSX

Corp

1,552‌

48‌

Expeditors

International

of

Washington

Inc

148‌

15‌

JB

Hunt

Transport

Services

Inc

215‌

38‌

Landstar

System

Inc

95‌

15‌

Old

Dominion

Freight

Line

Inc

2,608‌

741‌

RXO

Inc

(d)

28‌

1‌

Union

Pacific

Corp

1,802‌

373‌

United

Parcel

Service

Inc

1,922‌

334‌

XPO

Inc

(d)

28‌

1‌

$

1,574‌

TOTAL

COMMON

STOCKS

$

425,363‌

Total

Investments

$

439,351‌

Other

Assets

and

Liabilities

-  0.03%

142‌

TOTAL

NET

ASSETS

-

100.00%

$

439,493‌

(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

$52

or

0.01%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

Non-income

producing

security

(e)

The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

(f)

Restricted

Security.

Please

see

Restricted

Securities

sub-schedule

for

additional

information.

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2022

See

accompanying

notes.

206

(g)

Security

or

a

portion

of

the

security

was

on

loan.  At

the

end

of

the

period,

the

value

of

these

securities

totaled

$51

or

0.01%

of

net

assets.

Portfolio

Summary  (unaudited)

Sector

Percent

Technology

34

.52‌

%

Consumer,

Non-cyclical

27

.60‌

%

Communications

15

.10‌

%

Consumer,

Cyclical

7

.54‌

%

Financial

6

.43‌

%

Industrial

5

.38‌

%

Money

Market

Funds

2

.73‌

%

Investment

Companies

0

.29‌

%

Energy

0

.22‌

%

Basic

Materials

0

.15‌

%

Utilities

0

.01‌

%

Other

Assets

and

Liabilities

0

.03‌

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

17,628‌

$

5,654‌

$

11,974‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

14,583‌

197,731‌

212,314‌

—‌

$

14,583‌

$

215,359‌

$

217,968‌

$

11,974‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

18‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

91‌

—‌

—‌

—‌

$

109‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Restricted

Securities

Security

Name

Acquisition

Date

Cost

Value

Percent

of

Net

Assets

Magic

Leap

Inc

01/20/2016-10/12/2017

$

182‌

$

7‌

0.00%

Nuro

-

Series

C  

0.00%

10/30/2020

228‌

242‌

0.06%

Rappi

Inc

-

Series

E  

0.00%

09/08/2020

306‌

185‌

0.04%

Sila

Nano

Series

F  

0.00%

01/07/2021

204‌

154‌

0.03%

Stripe

Inc

-

Class

B

12/17/2019

90‌

106‌

0.03%

Waymo

LLC

Series

A-2  

0.00%

05/08/2020

214‌

117‌

0.03%

Total

$

811‌

0.19%

Amounts

in

thousands.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

S&P

500

Emini;

March

2023

Long

9‌

$

1,737‌

$

(

41‌

)

Total

$

(

41‌

)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2022

See

accompanying

notes.

207

INVESTMENT

COMPANIES

-

3

.70

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

0

.22

%

iShares

Core

S&P

500

ETF

15,016‌

$

5,769‌

Money

Market

Funds

-

3

.48

%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

88,905,134‌

88,905‌

TOTAL

INVESTMENT

COMPANIES

$

94,674‌

COMMON

STOCKS

-

96

.24

%

Shares

Held

Value

(000's)

Advertising

-

0

.09

%

Interpublic

Group

of

Cos

Inc/The

29,772‌

$

992‌

Omnicom

Group

Inc

15,626‌

1,274‌

$

2,266‌

Aerospace

&

Defense

-

1

.77

%

Boeing

Co/The

(c)

42,926‌

8,177‌

General

Dynamics

Corp

17,250‌

4,280‌

Howmet

Aerospace

Inc

28,215‌

1,112‌

L3Harris

Technologies

Inc

14,591‌

3,038‌

Lockheed

Martin

Corp

17,874‌

8,696‌

Northrop

Grumman

Corp

11,087‌

6,049‌

Raytheon

Technologies

Corp

112,646‌

11,368‌

TransDigm

Group

Inc

3,958‌

2,492‌

$

45,212‌

Agriculture

-

0

.87

%

Altria

Group

Inc

137,327‌

6,277‌

Archer-Daniels-Midland

Co

42,094‌

3,909‌

Philip

Morris

International

Inc

118,785‌

12,022‌

$

22,208‌

Airlines

-

0

.20

%

Alaska

Air

Group

Inc

(c)

9,718‌

417‌

American

Airlines

Group

Inc

(c)

49,798‌

633‌

Delta

Air

Lines

Inc

(c)

49,131‌

1,615‌

Southwest

Airlines

Co

45,496‌

1,532‌

United

Airlines

Holdings

Inc

(c)

25,050‌

944‌

$

5,141‌

Apparel

-

0

.51

%

NIKE

Inc

96,524‌

11,294‌

Ralph

Lauren

Corp

3,149‌

333‌

Tapestry

Inc

18,465‌

703‌

VF

Corp

25,307‌

699‌

$

13,029‌

Automobile

Manufacturers

-

1

.48

%

Cummins

Inc

10,805‌

2,618‌

Ford

Motor

Co

302,643‌

3,520‌

General

Motors

Co

108,863‌

3,662‌

PACCAR

Inc

26,647‌

2,637‌

Tesla

Inc

(c)

205,669‌

25,334‌

$

37,771‌

Automobile

Parts

&

Equipment

-

0

.10

%

Aptiv

PLC

(c)

20,761‌

1,934‌

BorgWarner

Inc

17,943‌

722‌

$

2,656‌

Banks

-

4

.62

%

Bank

of

America

Corp

534,810‌

17,713‌

Bank

of

New

York

Mellon

Corp/The

56,360‌

2,565‌

Citigroup

Inc

148,412‌

6,713‌

Citizens

Financial

Group

Inc

37,738‌

1,486‌

Comerica

Inc

10,033‌

671‌

Fifth

Third

Bancorp

52,595‌

1,726‌

First

Republic

Bank/CA

14,016‌

1,708‌

Goldman

Sachs

Group

Inc/The

25,949‌

8,910‌

Huntington

Bancshares

Inc/OH

110,550‌

1,559‌

JPMorgan

Chase

&

Co

224,759‌

30,140‌

KeyCorp

71,488‌

1,245‌

M&T

Bank

Corp

13,228‌

1,919‌

Morgan

Stanley

101,015‌

8,588‌

Northern

Trust

Corp

15,969‌

1,413‌

PNC

Financial

Services

Group

Inc/The

30,906‌

4,881‌

Regions

Financial

Corp

71,601‌

1,544‌

Signature

Bank/New

York

NY

4,820‌

555‌

State

Street

Corp

28,116‌

2,181‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Banks

(continued)

SVB

Financial

Group

(c)

4,529‌

$

1,042‌

Truist

Financial

Corp

101,663‌

4,375‌

US

Bancorp

103,604‌

4,518‌

Wells

Fargo

&

Co

291,980‌

12,056‌

Zions

Bancorp

NA

11,465‌

564‌

$

118,072‌

Beverages

-

1

.87

%

Brown-Forman

Corp

-

B

Shares

14,010‌

920‌

Coca-Cola

Co/The

298,231‌

18,970‌

Constellation

Brands

Inc

12,438‌

2,883‌

Keurig

Dr

Pepper

Inc

65,111‌

2,322‌

Molson

Coors

Beverage

Co

14,404‌

742‌

Monster

Beverage

Corp

(c)

29,186‌

2,963‌

PepsiCo

Inc

105,567‌

19,072‌

$

47,872‌

Biotechnology

-

1

.79

%

Amgen

Inc

40,885‌

10,738‌

Biogen

Inc

(c)

11,035‌

3,056‌

Bio-Rad

Laboratories

Inc

(c)

1,649‌

693‌

Corteva

Inc

54,750‌

3,218‌

Gilead

Sciences

Inc

96,107‌

8,251‌

Illumina

Inc

(c)

12,052‌

2,437‌

Incyte

Corp

(c)

14,148‌

1,136‌

Moderna

Inc

(c)

25,318‌

4,548‌

Regeneron

Pharmaceuticals

Inc

(c)

8,205‌

5,920‌

Vertex

Pharmaceuticals

Inc

(c)

19,668‌

5,680‌

$

45,677‌

Building

Materials

-

0

.42

%

Carrier

Global

Corp

64,081‌

2,643‌

Johnson

Controls

International

plc

52,771‌

3,377‌

Martin

Marietta

Materials

Inc

4,758‌

1,608‌

Masco

Corp

17,280‌

807‌

Mohawk

Industries

Inc

(c)

4,039‌

413‌

Vulcan

Materials

Co

10,183‌

1,783‌

$

10,631‌

Chemicals

-

1

.68

%

Air

Products

and

Chemicals

Inc

16,995‌

5,239‌

Albemarle

Corp

8,977‌

1,947‌

Celanese

Corp

7,642‌

781‌

CF

Industries

Holdings

Inc

15,034‌

1,281‌

Dow

Inc

53,927‌

2,717‌

DuPont

de

Nemours

Inc

38,068‌

2,613‌

Eastman

Chemical

Co

9,195‌

749‌

Ecolab

Inc

18,987‌

2,764‌

FMC

Corp

9,651‌

1,204‌

International

Flavors

&

Fragrances

Inc

19,536‌

2,048‌

Linde

PLC

37,883‌

12,357‌

LyondellBasell

Industries

NV

19,461‌

1,616‌

Mosaic

Co/The

26,091‌

1,145‌

PPG

Industries

Inc

18,008‌

2,264‌

Sherwin-Williams

Co/The

18,069‌

4,288‌

$

43,013‌

Commercial

Services

-

1

.79

%

Automatic

Data

Processing

Inc

31,786‌

7,593‌

Cintas

Corp

6,614‌

2,987‌

CoStar

Group

Inc

(c)

31,162‌

2,408‌

Equifax

Inc

9,381‌

1,823‌

FleetCor

Technologies

Inc

(c)

5,652‌

1,038‌

Gartner

Inc

(c)

6,055‌

2,035‌

Global

Payments

Inc

20,721‌

2,058‌

MarketAxess

Holdings

Inc

2,884‌

804‌

Moody's

Corp

12,071‌

3,363‌

PayPal

Holdings

Inc

(c)

87,357‌

6,222‌

Quanta

Services

Inc

10,949‌

1,560‌

Robert

Half

International

Inc

8,315‌

614‌

Rollins

Inc

17,735‌

648‌

S&P

Global

Inc

25,518‌

8,547‌

United

Rentals

Inc

(c)

5,311‌

1,888‌

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2022

See

accompanying

notes.

208

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Commercial

Services

(continued)

Verisk

Analytics

Inc

11,982‌

$

2,114‌

$

45,702‌

Computers

-

7

.24

%

Accenture

PLC

-

Class

A

48,279‌

12,883‌

Apple

Inc

1,145,835‌

148,878‌

Cognizant

Technology

Solutions

Corp

39,380‌

2,252‌

DXC

Technology

Co

(c)

17,628‌

467‌

EPAM

Systems

Inc

(c)

4,407‌

1,444‌

Fortinet

Inc

(c)

49,687‌

2,429‌

Hewlett

Packard

Enterprise

Co

98,595‌

1,574‌

HP

Inc

67,832‌

1,823‌

International

Business

Machines

Corp

69,278‌

9,761‌

Leidos

Holdings

Inc

10,473‌

1,102‌

NetApp

Inc

16,657‌

1,000‌

Seagate

Technology

Holdings

PLC

14,713‌

774‌

Western

Digital

Corp

(c)

24,339‌

768‌

$

185,155‌

Consumer

Products

-

0

.29

%

Avery

Dennison

Corp

6,204‌

1,123‌

Church

&

Dwight

Co

Inc

18,686‌

1,506‌

Clorox

Co/The

9,453‌

1,327‌

Kimberly-Clark

Corp

25,860‌

3,510‌

$

7,466‌

Cosmetics

&

Personal

Care

-

1

.44

%

Colgate-Palmolive

Co

63,998‌

5,042‌

Estee

Lauder

Cos

Inc/The

17,720‌

4,397‌

Procter

&

Gamble

Co/The

(d)

181,581‌

27,520‌

$

36,959‌

Distribution

&

Wholesale

-

0

.31

%

Copart

Inc

(c)

32,835‌

1,999‌

Fastenal

Co

43,887‌

2,077‌

LKQ

Corp

19,450‌

1,039‌

Pool

Corp

2,993‌

905‌

WW

Grainger

Inc

3,447‌

1,917‌

$

7,937‌

Diversified

Financial

Services

-

3

.83

%

American

Express

Co

45,805‌

6,768‌

Ameriprise

Financial

Inc

8,155‌

2,539‌

BlackRock

Inc

11,509‌

8,156‌

Capital

One

Financial

Corp

29,249‌

2,719‌

Cboe

Global

Markets

Inc

8,127‌

1,020‌

Charles

Schwab

Corp/The

116,877‌

9,731‌

CME

Group

Inc

27,564‌

4,635‌

Discover

Financial

Services

20,935‌

2,048‌

Franklin

Resources

Inc

21,766‌

574‌

Intercontinental

Exchange

Inc

42,798‌

4,391‌

Invesco

Ltd

34,848‌

627‌

Mastercard

Inc

65,047‌

22,619‌

Nasdaq

Inc

25,974‌

1,593‌

Raymond

James

Financial

Inc

14,833‌

1,585‌

Synchrony

Financial

34,524‌

1,134‌

T

Rowe

Price

Group

Inc

17,124‌

1,868‌

Visa

Inc

125,284‌

26,029‌

$

98,036‌

Electric

-

2

.90

%

AES

Corp/The

51,181‌

1,472‌

Alliant

Energy

Corp

19,234‌

1,062‌

Ameren

Corp

19,809‌

1,761‌

American

Electric

Power

Co

Inc

39,374‌

3,738‌

CenterPoint

Energy

Inc

48,238‌

1,447‌

CMS

Energy

Corp

22,240‌

1,408‌

Consolidated

Edison

Inc

27,191‌

2,592‌

Constellation

Energy

Corp

25,057‌

2,160‌

Dominion

Energy

Inc

63,850‌

3,915‌

DTE

Energy

Co

14,845‌

1,745‌

Duke

Energy

Corp

59,006‌

6,077‌

Edison

International

29,261‌

1,862‌

Entergy

Corp

15,591‌

1,754‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Electric

(continued)

Evergy

Inc

17,587‌

$

1,107‌

Eversource

Energy

26,689‌

2,238‌

Exelon

Corp

76,145‌

3,292‌

FirstEnergy

Corp

41,619‌

1,745‌

NextEra

Energy

Inc

152,267‌

12,729‌

NRG

Energy

Inc

17,654‌

562‌

PG&E

Corp

(c)

123,370‌

2,006‌

Pinnacle

West

Capital

Corp

8,668‌

659‌

PPL

Corp

56,420‌

1,649‌

Public

Service

Enterprise

Group

Inc

38,231‌

2,342‌

Sempra

Energy

24,085‌

3,722‌

Southern

Co/The

83,420‌

5,957‌

WEC

Energy

Group

Inc

24,170‌

2,266‌

Xcel

Energy

Inc

41,932‌

2,940‌

$

74,207‌

Electrical

Components

&

Equipment

-

0

.29

%

AMETEK

Inc

17,596‌

2,459‌

Emerson

Electric

Co

45,308‌

4,352‌

Generac

Holdings

Inc

(c)

4,855‌

489‌

$

7,300‌

Electronics

-

1

.17

%

Agilent

Technologies

Inc

22,686‌

3,395‌

Allegion

plc

6,730‌

708‌

Amphenol

Corp

45,599‌

3,472‌

Fortive

Corp

27,112‌

1,742‌

Garmin

Ltd

11,750‌

1,084‌

Honeywell

International

Inc

51,516‌

11,040‌

Keysight

Technologies

Inc

(c)

13,701‌

2,344‌

Mettler-Toledo

International

Inc

(c)

1,709‌

2,470‌

TE

Connectivity

Ltd

24,374‌

2,798‌

Trimble

Inc

(c)

18,900‌

956‌

$

30,009‌

Energy

-

Alternate

Sources

-

0

.20

%

Enphase

Energy

Inc

(c)

10,415‌

2,760‌

First

Solar

Inc

(c)

7,596‌

1,138‌

SolarEdge

Technologies

Inc

(c)

4,283‌

1,213‌

$

5,111‌

Engineering

&

Construction

-

0

.05

%

Jacobs

Solutions

Inc

9,777‌

1,174‌

Entertainment

-

0

.06

%

Caesars

Entertainment

Inc

(c)

16,440‌

684‌

Live

Nation

Entertainment

Inc

(c)

10,945‌

763‌

$

1,447‌

Environmental

Control

-

0

.28

%

Pentair

PLC

12,604‌

567‌

Republic

Services

Inc

15,738‌

2,030‌

Waste

Management

Inc

28,624‌

4,491‌

$

7,088‌

Food

-

1

.21

%

Campbell

Soup

Co

15,388‌

873‌

Conagra

Brands

Inc

36,722‌

1,421‌

General

Mills

Inc

45,479‌

3,813‌

Hershey

Co/The

11,260‌

2,608‌

Hormel

Foods

Corp

22,181‌

1,010‌

J

M

Smucker

Co/The

8,164‌

1,294‌

Kellogg

Co

19,612‌

1,397‌

Kraft

Heinz

Co/The

61,009‌

2,484‌

Kroger

Co/The

49,912‌

2,225‌

Lamb

Weston

Holdings

Inc

11,020‌

985‌

McCormick

&

Co

Inc/MD

19,202‌

1,592‌

Mondelez

International

Inc

104,640‌

6,974‌

Sysco

Corp

38,832‌

2,969‌

Tyson

Foods

Inc

22,191‌

1,381‌

$

31,026‌

Forest

Products

&

Paper

-

0

.04

%

International

Paper

Co

27,255‌

944‌

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2022

See

accompanying

notes.

209

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Gas

-

0

.08

%

Atmos

Energy

Corp

10,718‌

$

1,201‌

NiSource

Inc

31,120‌

854‌

$

2,055‌

Hand

&

Machine

Tools

-

0

.07

%

Snap-on

Inc

4,073‌

931‌

Stanley

Black

&

Decker

Inc

11,335‌

851‌

$

1,782‌

Healthcare

-

Products

-

3

.73

%

Abbott

Laboratories

133,603‌

14,668‌

Align

Technology

Inc

(c)

5,566‌

1,174‌

Baxter

International

Inc

38,627‌

1,969‌

Bio-Techne

Corp

12,027‌

997‌

Boston

Scientific

Corp

(c)

109,751‌

5,078‌

Cooper

Cos

Inc/The

3,781‌

1,250‌

Danaher

Corp

50,202‌

13,325‌

DENTSPLY

SIRONA

Inc

16,467‌

524‌

Edwards

Lifesciences

Corp

(c)

47,374‌

3,535‌

Hologic

Inc

(c)

19,129‌

1,431‌

IDEXX

Laboratories

Inc

(c)

6,347‌

2,589‌

Intuitive

Surgical

Inc

(c)

27,080‌

7,186‌

Medtronic

PLC

101,846‌

7,915‌

PerkinElmer

Inc

9,671‌

1,356‌

ResMed

Inc

11,223‌

2,336‌

STERIS

PLC

7,648‌

1,413‌

Stryker

Corp

25,807‌

6,310‌

Teleflex

Inc

3,594‌

897‌

Thermo

Fisher

Scientific

Inc

30,052‌

16,549‌

Waters

Corp

(c)

4,553‌

1,560‌

West

Pharmaceutical

Services

Inc

5,673‌

1,335‌

Zimmer

Biomet

Holdings

Inc

16,079‌

2,050‌

$

95,447‌

Healthcare

-

Services

-

2

.72

%

Catalent

Inc

(c)

13,789‌

621‌

Centene

Corp

(c)

43,391‌

3,558‌

Charles

River

Laboratories

International

Inc

(c)

3,898‌

849‌

DaVita

Inc

(c)

4,212‌

314‌

Elevance

Health

Inc

18,301‌

9,388‌

HCA

Healthcare

Inc

16,249‌

3,899‌

Humana

Inc

9,701‌

4,969‌

IQVIA

Holdings

Inc

(c)

14,233‌

2,916‌

Laboratory

Corp

of

America

Holdings

6,790‌

1,599‌

Molina

Healthcare

Inc

(c)

4,475‌

1,478‌

Quest

Diagnostics

Inc

8,727‌

1,365‌

UnitedHealth

Group

Inc

71,594‌

37,958‌

Universal

Health

Services

Inc

4,917‌

693‌

$

69,607‌

Home

Builders

-

0

.23

%

DR

Horton

Inc

23,985‌

2,138‌

Lennar

Corp

-

A

Shares

19,521‌

1,767‌

NVR

Inc

(c)

231‌

1,065‌

PulteGroup

Inc

17,458‌

795‌

$

5,765‌

Home

Furnishings

-

0

.02

%

Whirlpool

Corp

4,174‌

590‌

Housewares

-

0

.01

%

Newell

Brands

Inc

28,840‌

377‌

Insurance

-

4

.02

%

Aflac

Inc

43,358‌

3,119‌

Allstate

Corp/The

20,323‌

2,756‌

American

International

Group

Inc

56,933‌

3,600‌

Aon

PLC

15,851‌

4,758‌

Arch

Capital

Group

Ltd

(c)

28,341‌

1,779‌

Arthur

J

Gallagher

&

Co

16,155‌

3,046‌

Assurant

Inc

4,049‌

506‌

Berkshire

Hathaway

Inc

-

Class

B

(c)

138,057‌

42,646‌

Brown

&

Brown

Inc

18,012‌

1,026‌

Chubb

Ltd

31,805‌

7,016‌

Cincinnati

Financial

Corp

12,045‌

1,233‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Insurance

(continued)

Everest

Re

Group

Ltd

3,002‌

$

994‌

Globe

Life

Inc

6,930‌

835‌

Hartford

Financial

Services

Group

Inc/The

24,376‌

1,848‌

Lincoln

National

Corp

11,800‌

363‌

Loews

Corp

15,101‌

881‌

Marsh

&

McLennan

Cos

Inc

38,008‌

6,290‌

MetLife

Inc

50,503‌

3,655‌

Principal

Financial

Group

Inc

17,438‌

1,463‌

Progressive

Corp/The

44,830‌

5,815‌

Prudential

Financial

Inc

28,200‌

2,805‌

Travelers

Cos

Inc/The

17,958‌

3,367‌

W

R

Berkley

Corp

15,663‌

1,137‌

Willis

Towers

Watson

PLC

8,295‌

2,029‌

$

102,967‌

Internet

-

7

.04

%

Alphabet

Inc

-

A

Shares

(c)

457,685‌

40,382‌

Alphabet

Inc

-

C

Shares

(c)

405,721‌

36,000‌

Amazon.com

Inc

(c)

680,086‌

57,127‌

Booking

Holdings

Inc

(c)

2,973‌

5,992‌

CDW

Corp/DE

10,373‌

1,852‌

eBay

Inc

41,582‌

1,724‌

Etsy

Inc

(c)

9,632‌

1,154‌

Expedia

Group

Inc

(c)

11,538‌

1,011‌

F5

Inc

(c)

4,586‌

658‌

Gen

Digital

Inc

44,422‌

952‌

Match

Group

Inc

(c)

21,403‌

888‌

Meta

Platforms

Inc

(c)

172,307‌

20,735‌

Netflix

Inc

(c)

34,099‌

10,055‌

VeriSign

Inc

(c)

7,068‌

1,452‌

$

179,982‌

Iron

&

Steel

-

0

.15

%

Nucor

Corp

19,659‌

2,591‌

Steel

Dynamics

Inc

12,780‌

1,249‌

$

3,840‌

Leisure

Products

&

Services

-

0

.07

%

Carnival

Corp

(c)

76,735‌

619‌

Norwegian

Cruise

Line

Holdings

Ltd

(c)

32,288‌

395‌

Royal

Caribbean

Cruises

Ltd

(c)

16,815‌

831‌

$

1,845‌

Lodging

-

0

.33

%

Hilton

Worldwide

Holdings

Inc

20,725‌

2,619‌

Las

Vegas

Sands

Corp

(c)

25,178‌

1,210‌

Marriott

International

Inc/MD

20,618‌

3,070‌

MGM

Resorts

International

24,425‌

819‌

Wynn

Resorts

Ltd

(c)

7,899‌

651‌

$

8,369‌

Machinery

-

Construction

&

Mining

-

0

.37

%

Caterpillar

Inc

39,877‌

9,553‌

Machinery

-

Diversified

-

0

.86

%

Deere

&

Co

21,047‌

9,024‌

Dover

Corp

10,756‌

1,456‌

IDEX

Corp

5,779‌

1,319‌

Ingersoll

Rand

Inc

31,027‌

1,621‌

Nordson

Corp

4,121‌

980‌

Otis

Worldwide

Corp

31,923‌

2,500‌

Rockwell

Automation

Inc

8,801‌

2,267‌

Westinghouse

Air

Brake

Technologies

Corp

13,935‌

1,391‌

Xylem

Inc/NY

13,809‌

1,527‌

$

22,085‌

Media

-

1

.25

%

Charter

Communications

Inc

(c)

8,231‌

2,791‌

Comcast

Corp

-

Class

A

330,562‌

11,560‌

DISH

Network

Corp

(c)

19,259‌

270‌

FactSet

Research

Systems

Inc

2,919‌

1,171‌

Fox

Corp

-

A

Shares

23,179‌

704‌

Fox

Corp

-

B

Shares

10,677‌

304‌

News

Corp

-

A

Shares

29,299‌

533‌

News

Corp

-

B

Shares

9,035‌

167‌

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2022

See

accompanying

notes.

210

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Media

(continued)

Paramount

Global

-

Class

B

38,697‌

$

653‌

Walt

Disney

Co/The

(c)

139,692‌

12,137‌

Warner

Bros

Discovery

Inc

(c)

169,330‌

1,605‌

$

31,895‌

Mining

-

0

.28

%

Freeport-McMoRan

Inc

109,522‌

4,162‌

Newmont

Corp

60,820‌

2,871‌

$

7,033‌

Miscellaneous

Manufacturers

-

1

.19

%

3M

Co

42,353‌

5,079‌

A

O

Smith

Corp

9,722‌

556‌

Eaton

Corp

PLC

30,474‌

4,783‌

General

Electric

Co

83,726‌

7,015‌

Illinois

Tool

Works

Inc

21,421‌

4,719‌

Parker-Hannifin

Corp

9,839‌

2,863‌

Teledyne

Technologies

Inc

(c)

3,591‌

1,436‌

Textron

Inc

15,998‌

1,133‌

Trane

Technologies

PLC

17,649‌

2,967‌

$

30,551‌

Office

&

Business

Equipment

-

0

.04

%

Zebra

Technologies

Corp

(c)

3,956‌

1,014‌

Oil

&

Gas

-

4

.24

%

APA

Corp

24,637‌

1,150‌

Chevron

Corp

136,314‌

24,467‌

ConocoPhillips

95,483‌

11,267‌

Coterra

Energy

Inc

60,418‌

1,484‌

Devon

Energy

Corp

50,089‌

3,081‌

Diamondback

Energy

Inc

13,487‌

1,845‌

EOG

Resources

Inc

45,008‌

5,829‌

EQT

Corp

28,127‌

952‌

Exxon

Mobil

Corp

315,569‌

34,807‌

Hess

Corp

21,263‌

3,016‌

Marathon

Oil

Corp

48,664‌

1,317‌

Marathon

Petroleum

Corp

35,912‌

4,180‌

Occidental

Petroleum

Corp

55,718‌

3,510‌

Phillips

66

36,216‌

3,769‌

Pioneer

Natural

Resources

Co

18,207‌

4,158‌

Valero

Energy

Corp

29,542‌

3,748‌

$

108,580‌

Oil

&

Gas

Services

-

0

.42

%

Baker

Hughes

Co

76,739‌

2,266‌

Halliburton

Co

69,578‌

2,738‌

Schlumberger

Ltd

108,654‌

5,809‌

$

10,813‌

Packaging

&

Containers

-

0

.19

%

Amcor

PLC

114,098‌

1,359‌

Ball

Corp

24,054‌

1,230‌

Packaging

Corp

of

America

7,091‌

907‌

Sealed

Air

Corp

11,084‌

553‌

Westrock

Co

19,485‌

685‌

$

4,734‌

Pharmaceuticals

-

6

.88

%

AbbVie

Inc

135,510‌

21,900‌

AmerisourceBergen

Corp

12,409‌

2,056‌

Becton

Dickinson

and

Co

21,852‌

5,557‌

Bristol-Myers

Squibb

Co

162,919‌

11,722‌

Cardinal

Health

Inc

20,087‌

1,544‌

Cigna

Corp

23,427‌

7,762‌

CVS

Health

Corp

100,682‌

9,383‌

Dexcom

Inc

(c)

29,599‌

3,352‌

Eli

Lilly

&

Co

60,430‌

22,108‌

Henry

Schein

Inc

(c)

10,387‌

830‌

Johnson

&

Johnson

200,338‌

35,390‌

McKesson

Corp

10,866‌

4,076‌

Merck

&

Co

Inc

194,275‌

21,555‌

Organon

&

Co

19,490‌

544‌

Pfizer

Inc

430,124‌

22,039‌

Viatris

Inc

92,922‌

1,034‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Pharmaceuticals

(continued)

Zoetis

Inc

35,714‌

$

5,234‌

$

176,086‌

Pipelines

-

0

.37

%

Kinder

Morgan

Inc

151,566‌

2,740‌

ONEOK

Inc

34,247‌

2,250‌

Targa

Resources

Corp

17,345‌

1,275‌

Williams

Cos

Inc/The

93,330‌

3,071‌

$

9,336‌

Real

Estate

-

0

.07

%

CBRE

Group

Inc

(c)

24,211‌

1,863‌

REITs

-

2

.53

%

Alexandria

Real

Estate

Equities

Inc

11,441‌

1,667‌

American

Tower

Corp

35,676‌

7,558‌

AvalonBay

Communities

Inc

10,719‌

1,731‌

Boston

Properties

Inc

10,929‌

739‌

Camden

Property

Trust

8,162‌

913‌

Crown

Castle

Inc

33,181‌

4,501‌

Digital

Realty

Trust

Inc

22,031‌

2,209‌

Equinix

Inc

7,091‌

4,645‌

Equity

Residential

26,062‌

1,538‌

Essex

Property

Trust

Inc

4,962‌

1,052‌

Extra

Space

Storage

Inc

10,261‌

1,510‌

Federal

Realty

Investment

Trust

5,599‌

566‌

Healthpeak

Properties

Inc

41,188‌

1,033‌

Host

Hotels

&

Resorts

Inc

54,789‌

879‌

Invitation

Homes

Inc

44,506‌

1,319‌

Iron

Mountain

Inc

22,275‌

1,110‌

Kimco

Realty

Corp

47,389‌

1,004‌

Mid-America

Apartment

Communities

Inc

8,847‌

1,389‌

Prologis

Inc

70,730‌

7,973‌

Public

Storage

12,111‌

3,393‌

Realty

Income

Corp

48,055‌

3,048‌

Regency

Centers

Corp

11,800‌

738‌

SBA

Communications

Corp

8,273‌

2,319‌

Simon

Property

Group

Inc

25,052‌

2,943‌

UDR

Inc

23,447‌

908‌

Ventas

Inc

30,628‌

1,380‌

VICI

Properties

Inc

73,797‌

2,391‌

Vornado

Realty

Trust

12,343‌

257‌

Welltower

Inc

36,206‌

2,373‌

Weyerhaeuser

Co

56,391‌

1,748‌

$

64,834‌

Retail

-

5

.36

%

Advance

Auto

Parts

Inc

4,607‌

677‌

AutoZone

Inc

(c)

1,455‌

3,588‌

Bath

&

Body

Works

Inc

17,498‌

737‌

Best

Buy

Co

Inc

15,352‌

1,231‌

CarMax

Inc

(c)

12,109‌

737‌

Chipotle

Mexican

Grill

Inc

(c)

2,124‌

2,947‌

Costco

Wholesale

Corp

33,914‌

15,482‌

Darden

Restaurants

Inc

9,377‌

1,297‌

Dollar

General

Corp

17,286‌

4,257‌

Dollar

Tree

Inc

(c)

16,129‌

2,281‌

Domino's

Pizza

Inc

2,713‌

940‌

Genuine

Parts

Co

10,800‌

1,874‌

Home

Depot

Inc/The

78,443‌

24,777‌

Lowe's

Cos

Inc

47,563‌

9,477‌

McDonald's

Corp

56,124‌

14,790‌

O'Reilly

Automotive

Inc

(c)

4,796‌

4,048‌

Ross

Stores

Inc

26,595‌

3,087‌

Starbucks

Corp

87,958‌

8,726‌

Target

Corp

35,269‌

5,257‌

TJX

Cos

Inc/The

88,968‌

7,082‌

Tractor

Supply

Co

8,465‌

1,904‌

Ulta

Beauty

Inc

(c)

3,925‌

1,841‌

Walgreens

Boots

Alliance

Inc

55,001‌

2,055‌

Walmart

Inc

108,151‌

15,335‌

Yum!

Brands

Inc

21,586‌

2,765‌

$

137,192‌

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2022

See

accompanying

notes.

211

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Semiconductors

-

4

.70

%

Advanced

Micro

Devices

Inc

(c)

123,547‌

$

8,002‌

Analog

Devices

Inc

39,413‌

6,465‌

Applied

Materials

Inc

65,922‌

6,419‌

Broadcom

Inc

31,034‌

17,352‌

Intel

Corp

316,234‌

8,358‌

KLA

Corp

10,859‌

4,094‌

Lam

Research

Corp

10,451‌

4,393‌

Microchip

Technology

Inc

42,146‌

2,961‌

Micron

Technology

Inc

83,306‌

4,164‌

Monolithic

Power

Systems

Inc

3,417‌

1,208‌

NVIDIA

Corp

190,800‌

27,884‌

NXP

Semiconductors

NV

19,858‌

3,138‌

ON

Semiconductor

Corp

(c)

33,133‌

2,066‌

Qorvo

Inc

(c)

7,770‌

704‌

QUALCOMM

Inc

85,897‌

9,444‌

Skyworks

Solutions

Inc

12,293‌

1,120‌

Teradyne

Inc

11,936‌

1,043‌

Texas

Instruments

Inc

69,544‌

11,490‌

$

120,305‌

Shipbuilding

-

0

.03

%

Huntington

Ingalls

Industries

Inc

3,057‌

705‌

Software

-

8

.88

%

Activision

Blizzard

Inc

54,571‌

4,177‌

Adobe

Inc

(c)

35,624‌

11,989‌

Akamai

Technologies

Inc

(c)

12,050‌

1,016‌

ANSYS

Inc

(c)

6,675‌

1,613‌

Autodesk

Inc

(c)

16,541‌

3,091‌

Broadridge

Financial

Solutions

Inc

9,014‌

1,209‌

Cadence

Design

Systems

Inc

(c)

21,019‌

3,376‌

Ceridian

HCM

Holding

Inc

(c)

11,768‌

755‌

Electronic

Arts

Inc

20,098‌

2,456‌

Fidelity

National

Information

Services

Inc

45,469‌

3,085‌

Fiserv

Inc

(c)

48,661‌

4,918‌

Intuit

Inc

21,598‌

8,406‌

Jack

Henry

&

Associates

Inc

5,589‌

981‌

Microsoft

Corp

571,204‌

136,986‌

MSCI

Inc

6,128‌

2,851‌

Oracle

Corp

117,759‌

9,626‌

Paychex

Inc

24,577‌

2,840‌

Paycom

Software

Inc

(c)

3,724‌

1,156‌

PTC

Inc

(c)

8,100‌

972‌

Roper

Technologies

Inc

8,126‌

3,511‌

Salesforce

Inc

(c)

76,625‌

10,160‌

ServiceNow

Inc

(c)

15,477‌

6,009‌

Synopsys

Inc

(c)

11,717‌

3,741‌

Take-Two

Interactive

Software

Inc

(c)

12,087‌

1,259‌

Tyler

Technologies

Inc

(c)

3,190‌

1,028‌

$

227,211‌

Telecommunications

-

2

.06

%

Arista

Networks

Inc

(c)

18,965‌

2,301‌

AT&T

Inc

546,111‌

10,054‌

Cisco

Systems

Inc

314,624‌

14,989‌

Corning

Inc

58,329‌

1,863‌

Juniper

Networks

Inc

24,869‌

795‌

Lumen

Technologies

Inc

72,933‌

381‌

Motorola

Solutions

Inc

12,811‌

3,301‌

T-Mobile

US

Inc

(c)

45,761‌

6,407‌

Verizon

Communications

Inc

321,814‌

12,679‌

$

52,770‌

Toys,

Games

&

Hobbies

-

0

.02

%

Hasbro

Inc

9,947‌

607‌

Transportation

-

1

.45

%

CH

Robinson

Worldwide

Inc

9,020‌

826‌

CSX

Corp

161,099‌

4,991‌

Expeditors

International

of

Washington

Inc

12,195‌

1,267‌

FedEx

Corp

18,343‌

3,177‌

JB

Hunt

Transport

Services

Inc

6,347‌

1,107‌

Norfolk

Southern

Corp

17,741‌

4,372‌

Old

Dominion

Freight

Line

Inc

6,943‌

1,970‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Transportation

(continued)

Union

Pacific

Corp

47,111‌

$

9,755‌

United

Parcel

Service

Inc

55,922‌

9,721‌

$

37,186‌

Water

-

0

.08

%

American

Water

Works

Co

Inc

13,932‌

2,124‌

TOTAL

COMMON

STOCKS

$

2,462,212‌

Total

Investments

$

2,556,886‌

Other

Assets

and

Liabilities

-  0.06%

1,415‌

TOTAL

NET

ASSETS

-

100.00%

$

2,558,301‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

(d)

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

$9,374

or

0.37%

of

net

assets.

Portfolio

Summary  (unaudited)

Sector

Percent

Consumer,

Non-cyclical

22

.59‌

%

Technology

20

.86‌

%

Financial

15

.07‌

%

Communications

10

.44‌

%

Consumer,

Cyclical

8

.70‌

%

Industrial

8

.14‌

%

Energy

5

.23‌

%

Money

Market

Funds

3

.48‌

%

Utilities

3

.06‌

%

Basic

Materials

2

.15‌

%

Investment

Companies

0

.22‌

%

Other

Assets

and

Liabilities

0

.06‌

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2022

See

accompanying

notes.

212

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

130,654‌

$

41,749‌

$

88,905‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

91,329‌

582,644‌

673,973‌

—‌

$

91,329‌

$

713,298‌

$

715,722‌

$

88,905‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

152‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

605‌

—‌

—‌

—‌

$

757‌

$

—‌

$

—‌

$

—‌

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;

March

2023

Long

465‌

$

89,768‌

$

(

2,278‌

)

Total

$

(

2,278‌

)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2022

See

accompanying

notes.

213

INVESTMENT

COMPANIES

-

6

.08

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

0

.13

%

iShares

Core

S&P

500

ETF

616‌

$

237‌

Money

Market

Funds

-

5

.95

%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

10,781,895‌

10,782‌

TOTAL

INVESTMENT

COMPANIES

$

11,019‌

COMMON

STOCKS

-

92

.79

%

Shares

Held

Value

(000's)

Advertising

-

0

.09

%

Interpublic

Group

of

Cos

Inc/The

2,033‌

$

68‌

Omnicom

Group

Inc

1,067‌

87‌

$

155‌

Aerospace

&

Defense

-

1

.70

%

Boeing

Co/The

(c)

2,930‌

558‌

General

Dynamics

Corp

1,177‌

292‌

Howmet

Aerospace

Inc

1,927‌

76‌

L3Harris

Technologies

Inc

997‌

208‌

Lockheed

Martin

Corp

1,221‌

594‌

Northrop

Grumman

Corp

757‌

413‌

Raytheon

Technologies

Corp

7,691‌

776‌

TransDigm

Group

Inc

270‌

170‌

$

3,087‌

Agriculture

-

0

.84

%

Altria

Group

Inc

9,377‌

428‌

Archer-Daniels-Midland

Co

2,874‌

267‌

Philip

Morris

International

Inc

8,110‌

821‌

$

1,516‌

Airlines

-

0

.19

%

Alaska

Air

Group

Inc

(c)

663‌

29‌

American

Airlines

Group

Inc

(c)

3,400‌

43‌

Delta

Air

Lines

Inc

(c)

3,354‌

110‌

Southwest

Airlines

Co

3,106‌

105‌

United

Airlines

Holdings

Inc

(c)

1,710‌

64‌

$

351‌

Apparel

-

0

.49

%

NIKE

Inc

6,590‌

771‌

Ralph

Lauren

Corp

215‌

23‌

Tapestry

Inc

1,261‌

48‌

VF

Corp

1,727‌

48‌

$

890‌

Automobile

Manufacturers

-

1

.42

%

Cummins

Inc

737‌

179‌

Ford

Motor

Co

20,663‌

240‌

General

Motors

Co

7,433‌

250‌

PACCAR

Inc

1,819‌

180‌

Tesla

Inc

(c)

14,042‌

1,730‌

$

2,579‌

Automobile

Parts

&

Equipment

-

0

.10

%

Aptiv

PLC

(c)

1,417‌

132‌

BorgWarner

Inc

1,226‌

49‌

$

181‌

Banks

-

4

.45

%

Bank

of

America

Corp

36,515‌

1,209‌

Bank

of

New

York

Mellon

Corp/The

3,848‌

175‌

Citigroup

Inc

10,133‌

458‌

Citizens

Financial

Group

Inc

2,577‌

102‌

Comerica

Inc

685‌

46‌

Fifth

Third

Bancorp

3,591‌

118‌

First

Republic

Bank/CA

957‌

117‌

Goldman

Sachs

Group

Inc/The

1,772‌

609‌

Huntington

Bancshares

Inc/OH

7,548‌

106‌

JPMorgan

Chase

&

Co

15,345‌

2,058‌

KeyCorp

4,881‌

85‌

M&T

Bank

Corp

904‌

131‌

Morgan

Stanley

6,897‌

586‌

Northern

Trust

Corp

1,090‌

97‌

PNC

Financial

Services

Group

Inc/The

2,111‌

333‌

Regions

Financial

Corp

4,888‌

105‌

Signature

Bank/New

York

NY

329‌

38‌

State

Street

Corp

1,919‌

149‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Banks

(continued)

SVB

Financial

Group

(c)

309‌

$

71‌

Truist

Financial

Corp

6,941‌

299‌

US

Bancorp

7,073‌

308‌

Wells

Fargo

&

Co

19,935‌

823‌

Zions

Bancorp

NA

785‌

39‌

$

8,062‌

Beverages

-

1

.80

%

Brown-Forman

Corp

-

B

Shares

956‌

63‌

Coca-Cola

Co/The

20,362‌

1,295‌

Constellation

Brands

Inc

849‌

197‌

Keurig

Dr

Pepper

Inc

4,445‌

158‌

Molson

Coors

Beverage

Co

983‌

51‌

Monster

Beverage

Corp

(c)

1,993‌

202‌

PepsiCo

Inc

7,207‌

1,302‌

$

3,268‌

Biotechnology

-

1

.72

%

Amgen

Inc

2,791‌

733‌

Biogen

Inc

(c)

754‌

209‌

Bio-Rad

Laboratories

Inc

(c)

112‌

47‌

Corteva

Inc

3,739‌

220‌

Gilead

Sciences

Inc

6,561‌

563‌

Illumina

Inc

(c)

822‌

166‌

Incyte

Corp

(c)

966‌

78‌

Moderna

Inc

(c)

1,729‌

311‌

Regeneron

Pharmaceuticals

Inc

(c)

560‌

404‌

Vertex

Pharmaceuticals

Inc

(c)

1,342‌

387‌

$

3,118‌

Building

Materials

-

0

.40

%

Carrier

Global

Corp

4,376‌

180‌

Johnson

Controls

International

plc

3,603‌

231‌

Martin

Marietta

Materials

Inc

324‌

109‌

Masco

Corp

1,179‌

55‌

Mohawk

Industries

Inc

(c)

275‌

28‌

Vulcan

Materials

Co

695‌

122‌

$

725‌

Chemicals

-

1

.62

%

Air

Products

and

Chemicals

Inc

1,160‌

358‌

Albemarle

Corp

612‌

133‌

Celanese

Corp

521‌

53‌

CF

Industries

Holdings

Inc

1,027‌

87‌

Dow

Inc

3,682‌

186‌

DuPont

de

Nemours

Inc

2,600‌

178‌

Eastman

Chemical

Co

628‌

51‌

Ecolab

Inc

1,296‌

189‌

FMC

Corp

659‌

82‌

International

Flavors

&

Fragrances

Inc

1,333‌

140‌

Linde

PLC

2,587‌

844‌

LyondellBasell

Industries

NV

1,328‌

110‌

Mosaic

Co/The

1,782‌

78‌

PPG

Industries

Inc

1,229‌

154‌

Sherwin-Williams

Co/The

1,233‌

293‌

$

2,936‌

Commercial

Services

-

1

.72

%

Automatic

Data

Processing

Inc

2,170‌

518‌

Cintas

Corp

451‌

204‌

CoStar

Group

Inc

(c)

2,127‌

164‌

Equifax

Inc

640‌

124‌

FleetCor

Technologies

Inc

(c)

386‌

71‌

Gartner

Inc

(c)

413‌

139‌

Global

Payments

Inc

1,415‌

141‌

MarketAxess

Holdings

Inc

197‌

55‌

Moody's

Corp

824‌

230‌

PayPal

Holdings

Inc

(c)

5,965‌

425‌

Quanta

Services

Inc

747‌

106‌

Robert

Half

International

Inc

568‌

42‌

Rollins

Inc

1,210‌

44‌

S&P

Global

Inc

1,743‌

584‌

United

Rentals

Inc

(c)

363‌

129‌

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2022

See

accompanying

notes.

214

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Commercial

Services

(continued)

Verisk

Analytics

Inc

818‌

$

144‌

$

3,120‌

Computers

-

6

.98

%

Accenture

PLC

-

Class

A

3,296‌

880‌

Apple

Inc

78,234‌

10,165‌

Cognizant

Technology

Solutions

Corp

2,689‌

154‌

DXC

Technology

Co

(c)

1,203‌

32‌

EPAM

Systems

Inc

(c)

300‌

98‌

Fortinet

Inc

(c)

3,393‌

166‌

Hewlett

Packard

Enterprise

Co

6,732‌

107‌

HP

Inc

4,632‌

125‌

International

Business

Machines

Corp

4,730‌

666‌

Leidos

Holdings

Inc

715‌

75‌

NetApp

Inc

1,138‌

68‌

Seagate

Technology

Holdings

PLC

1,005‌

53‌

Western

Digital

Corp

(c)

1,661‌

52‌

$

12,641‌

Consumer

Products

-

0

.28

%

Avery

Dennison

Corp

424‌

77‌

Church

&

Dwight

Co

Inc

1,275‌

103‌

Clorox

Co/The

645‌

90‌

Kimberly-Clark

Corp

1,765‌

240‌

$

510‌

Cosmetics

&

Personal

Care

-

1

.39

%

Colgate-Palmolive

Co

4,369‌

344‌

Estee

Lauder

Cos

Inc/The

1,209‌

300‌

Procter

&

Gamble

Co/The

12,398‌

1,879‌

$

2,523‌

Distribution

&

Wholesale

-

0

.30

%

Copart

Inc

(c)

2,241‌

136‌

Fastenal

Co

2,996‌

142‌

LKQ

Corp

1,328‌

71‌

Pool

Corp

205‌

62‌

WW

Grainger

Inc

235‌

131‌

$

542‌

Diversified

Financial

Services

-

3

.69

%

American

Express

Co

3,127‌

462‌

Ameriprise

Financial

Inc

557‌

173‌

BlackRock

Inc

785‌

556‌

Capital

One

Financial

Corp

1,997‌

186‌

Cboe

Global

Markets

Inc

554‌

70‌

Charles

Schwab

Corp/The

7,980‌

664‌

CME

Group

Inc

1,881‌

316‌

Discover

Financial

Services

1,429‌

140‌

Franklin

Resources

Inc

1,486‌

39‌

Intercontinental

Exchange

Inc

2,922‌

300‌

Invesco

Ltd

2,379‌

43‌

Mastercard

Inc

4,442‌

1,545‌

Nasdaq

Inc

1,773‌

109‌

Raymond

James

Financial

Inc

1,012‌

108‌

Synchrony

Financial

2,358‌

77‌

T

Rowe

Price

Group

Inc

1,170‌

128‌

Visa

Inc

8,553‌

1,777‌

$

6,693‌

Electric

-

2

.80

%

AES

Corp/The

3,494‌

100‌

Alliant

Energy

Corp

1,313‌

72‌

Ameren

Corp

1,352‌

120‌

American

Electric

Power

Co

Inc

2,688‌

255‌

CenterPoint

Energy

Inc

3,293‌

99‌

CMS

Energy

Corp

1,518‌

96‌

Consolidated

Edison

Inc

1,856‌

177‌

Constellation

Energy

Corp

1,710‌

147‌

Dominion

Energy

Inc

4,359‌

267‌

DTE

Energy

Co

1,013‌

119‌

Duke

Energy

Corp

4,028‌

415‌

Edison

International

1,997‌

127‌

Entergy

Corp

1,064‌

120‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Electric

(continued)

Evergy

Inc

1,200‌

$

76‌

Eversource

Energy

1,822‌

153‌

Exelon

Corp

5,199‌

225‌

FirstEnergy

Corp

2,841‌

119‌

NextEra

Energy

Inc

10,396‌

869‌

NRG

Energy

Inc

1,206‌

38‌

PG&E

Corp

(c)

8,423‌

137‌

Pinnacle

West

Capital

Corp

591‌

45‌

PPL

Corp

3,852‌

113‌

Public

Service

Enterprise

Group

Inc

2,610‌

160‌

Sempra

Energy

1,644‌

254‌

Southern

Co/The

5,695‌

407‌

WEC

Energy

Group

Inc

1,650‌

155‌

Xcel

Energy

Inc

2,863‌

201‌

$

5,066‌

Electrical

Components

&

Equipment

-

0

.28

%

AMETEK

Inc

1,201‌

168‌

Emerson

Electric

Co

3,093‌

297‌

Generac

Holdings

Inc

(c)

332‌

33‌

$

498‌

Electronics

-

1

.13

%

Agilent

Technologies

Inc

1,549‌

232‌

Allegion

plc

459‌

49‌

Amphenol

Corp

3,113‌

237‌

Fortive

Corp

1,852‌

119‌

Garmin

Ltd

804‌

74‌

Honeywell

International

Inc

3,517‌

754‌

Keysight

Technologies

Inc

(c)

936‌

160‌

Mettler-Toledo

International

Inc

(c)

117‌

169‌

TE

Connectivity

Ltd

1,665‌

191‌

Trimble

Inc

(c)

1,291‌

65‌

$

2,050‌

Energy

-

Alternate

Sources

-

0

.19

%

Enphase

Energy

Inc

(c)

711‌

188‌

First

Solar

Inc

(c)

518‌

78‌

SolarEdge

Technologies

Inc

(c)

292‌

83‌

$

349‌

Engineering

&

Construction

-

0

.04

%

Jacobs

Solutions

Inc

667‌

80‌

Entertainment

-

0

.06

%

Caesars

Entertainment

Inc

(c)

1,122‌

47‌

Live

Nation

Entertainment

Inc

(c)

747‌

52‌

$

99‌

Environmental

Control

-

0

.27

%

Pentair

PLC

858‌

39‌

Republic

Services

Inc

1,074‌

138‌

Waste

Management

Inc

1,955‌

307‌

$

484‌

Food

-

1

.17

%

Campbell

Soup

Co

1,049‌

60‌

Conagra

Brands

Inc

2,507‌

97‌

General

Mills

Inc

3,104‌

260‌

Hershey

Co/The

768‌

178‌

Hormel

Foods

Corp

1,514‌

69‌

J

M

Smucker

Co/The

557‌

88‌

Kellogg

Co

1,339‌

95‌

Kraft

Heinz

Co/The

4,165‌

170‌

Kroger

Co/The

3,407‌

152‌

Lamb

Weston

Holdings

Inc

752‌

67‌

McCormick

&

Co

Inc/MD

1,311‌

109‌

Mondelez

International

Inc

7,144‌

476‌

Sysco

Corp

2,652‌

203‌

Tyson

Foods

Inc

1,515‌

94‌

$

2,118‌

Forest

Products

&

Paper

-

0

.04

%

International

Paper

Co

1,861‌

64‌

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2022

See

accompanying

notes.

215

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Gas

-

0

.08

%

Atmos

Energy

Corp

731‌

$

82‌

NiSource

Inc

2,124‌

58‌

$

140‌

Hand

&

Machine

Tools

-

0

.07

%

Snap-on

Inc

278‌

64‌

Stanley

Black

&

Decker

Inc

773‌

58‌

$

122‌

Healthcare

-

Products

-

3

.60

%

Abbott

Laboratories

9,122‌

1,002‌

Align

Technology

Inc

(c)

380‌

80‌

Baxter

International

Inc

2,637‌

134‌

Bio-Techne

Corp

820‌

68‌

Boston

Scientific

Corp

(c)

7,493‌

347‌

Cooper

Cos

Inc/The

258‌

85‌

Danaher

Corp

3,427‌

910‌

DENTSPLY

SIRONA

Inc

1,123‌

36‌

Edwards

Lifesciences

Corp

(c)

3,234‌

241‌

Hologic

Inc

(c)

1,306‌

98‌

IDEXX

Laboratories

Inc

(c)

434‌

177‌

Intuitive

Surgical

Inc

(c)

1,849‌

491‌

Medtronic

PLC

6,953‌

540‌

PerkinElmer

Inc

660‌

93‌

ResMed

Inc

766‌

159‌

STERIS

PLC

522‌

96‌

Stryker

Corp

1,762‌

431‌

Teleflex

Inc

245‌

61‌

Thermo

Fisher

Scientific

Inc

2,051‌

1,129‌

Waters

Corp

(c)

311‌

107‌

West

Pharmaceutical

Services

Inc

387‌

91‌

Zimmer

Biomet

Holdings

Inc

1,097‌

140‌

$

6,516‌

Healthcare

-

Services

-

2

.62

%

Catalent

Inc

(c)

941‌

42‌

Centene

Corp

(c)

2,963‌

243‌

Charles

River

Laboratories

International

Inc

(c)

266‌

58‌

DaVita

Inc

(c)

288‌

22‌

Elevance

Health

Inc

1,250‌

641‌

HCA

Healthcare

Inc

1,110‌

267‌

Humana

Inc

662‌

339‌

IQVIA

Holdings

Inc

(c)

972‌

199‌

Laboratory

Corp

of

America

Holdings

464‌

109‌

Molina

Healthcare

Inc

(c)

305‌

101‌

Quest

Diagnostics

Inc

596‌

93‌

UnitedHealth

Group

Inc

4,888‌

2,592‌

Universal

Health

Services

Inc

336‌

47‌

$

4,753‌

Home

Builders

-

0

.22

%

DR

Horton

Inc

1,638‌

146‌

Lennar

Corp

-

A

Shares

1,332‌

121‌

NVR

Inc

(c)

16‌

74‌

PulteGroup

Inc

1,192‌

54‌

$

395‌

Home

Furnishings

-

0

.02

%

Whirlpool

Corp

285‌

40‌

Housewares

-

0

.01

%

Newell

Brands

Inc

1,969‌

26‌

Insurance

-

3

.88

%

Aflac

Inc

2,961‌

213‌

Allstate

Corp/The

1,388‌

188‌

American

International

Group

Inc

3,888‌

246‌

Aon

PLC

1,083‌

325‌

Arch

Capital

Group

Ltd

(c)

1,935‌

121‌

Arthur

J

Gallagher

&

Co

1,103‌

208‌

Assurant

Inc

277‌

35‌

Berkshire

Hathaway

Inc

-

Class

B

(c)

9,426‌

2,912‌

Brown

&

Brown

Inc

1,229‌

70‌

Chubb

Ltd

2,172‌

479‌

Cincinnati

Financial

Corp

823‌

84‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Insurance

(continued)

Everest

Re

Group

Ltd

205‌

$

68‌

Globe

Life

Inc

473‌

57‌

Hartford

Financial

Services

Group

Inc/The

1,665‌

126‌

Lincoln

National

Corp

808‌

25‌

Loews

Corp

1,031‌

60‌

Marsh

&

McLennan

Cos

Inc

2,596‌

430‌

MetLife

Inc

3,449‌

250‌

Principal

Financial

Group

Inc

1,191‌

100‌

Progressive

Corp/The

3,060‌

397‌

Prudential

Financial

Inc

1,926‌

191‌

Travelers

Cos

Inc/The

1,227‌

230‌

W

R

Berkley

Corp

1,069‌

77‌

Willis

Towers

Watson

PLC

567‌

139‌

$

7,031‌

Internet

-

6

.78

%

Alphabet

Inc

-

A

Shares

(c)

31,249‌

2,757‌

Alphabet

Inc

-

C

Shares

(c)

27,702‌

2,458‌

Amazon.com

Inc

(c)

46,434‌

3,900‌

Booking

Holdings

Inc

(c)

203‌

409‌

CDW

Corp/DE

708‌

126‌

eBay

Inc

2,840‌

118‌

Etsy

Inc

(c)

658‌

79‌

Expedia

Group

Inc

(c)

788‌

69‌

F5

Inc

(c)

313‌

45‌

Gen

Digital

Inc

3,033‌

65‌

Match

Group

Inc

(c)

1,462‌

61‌

Meta

Platforms

Inc

(c)

11,765‌

1,416‌

Netflix

Inc

(c)

2,328‌

687‌

VeriSign

Inc

(c)

483‌

99‌

$

12,289‌

Iron

&

Steel

-

0

.15

%

Nucor

Corp

1,343‌

177‌

Steel

Dynamics

Inc

872‌

85‌

$

262‌

Leisure

Products

&

Services

-

0

.07

%

Carnival

Corp

(c)

5,239‌

42‌

Norwegian

Cruise

Line

Holdings

Ltd

(c)

2,204‌

27‌

Royal

Caribbean

Cruises

Ltd

(c)

1,148‌

57‌

$

126‌

Lodging

-

0

.32

%

Hilton

Worldwide

Holdings

Inc

1,415‌

179‌

Las

Vegas

Sands

Corp

(c)

1,719‌

82‌

Marriott

International

Inc/MD

1,408‌

210‌

MGM

Resorts

International

1,668‌

56‌

Wynn

Resorts

Ltd

(c)

539‌

44‌

$

571‌

Machinery

-

Construction

&

Mining

-

0

.36

%

Caterpillar

Inc

2,723‌

652‌

Machinery

-

Diversified

-

0

.83

%

Deere

&

Co

1,437‌

616‌

Dover

Corp

735‌

99‌

IDEX

Corp

394‌

90‌

Ingersoll

Rand

Inc

2,118‌

111‌

Nordson

Corp

281‌

67‌

Otis

Worldwide

Corp

2,180‌

171‌

Rockwell

Automation

Inc

601‌

155‌

Westinghouse

Air

Brake

Technologies

Corp

951‌

95‌

Xylem

Inc/NY

942‌

104‌

$

1,508‌

Media

-

1

.20

%

Charter

Communications

Inc

(c)

562‌

191‌

Comcast

Corp

-

Class

A

22,570‌

789‌

DISH

Network

Corp

(c)

1,315‌

18‌

FactSet

Research

Systems

Inc

199‌

80‌

Fox

Corp

-

A

Shares

1,583‌

48‌

Fox

Corp

-

B

Shares

729‌

21‌

News

Corp

-

A

Shares

2,001‌

36‌

News

Corp

-

B

Shares

617‌

11‌

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2022

See

accompanying

notes.

216

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Media

(continued)

Paramount

Global

-

Class

B

2,642‌

$

45‌

Walt

Disney

Co/The

(c)

9,537‌

829‌

Warner

Bros

Discovery

Inc

(c)

11,561‌

110‌

$

2,178‌

Mining

-

0

.27

%

Freeport-McMoRan

Inc

7,477‌

284‌

Newmont

Corp

4,152‌

196‌

$

480‌

Miscellaneous

Manufacturers

-

1

.15

%

3M

Co

2,891‌

347‌

A

O

Smith

Corp

664‌

38‌

Eaton

Corp

PLC

2,080‌

326‌

General

Electric

Co

5,715‌

479‌

Illinois

Tool

Works

Inc

1,463‌

322‌

Parker-Hannifin

Corp

671‌

195‌

Teledyne

Technologies

Inc

(c)

245‌

98‌

Textron

Inc

1,093‌

77‌

Trane

Technologies

PLC

1,205‌

203‌

$

2,085‌

Office

&

Business

Equipment

-

0

.04

%

Zebra

Technologies

Corp

(c)

270‌

69‌

Oil

&

Gas

-

4

.09

%

APA

Corp

1,683‌

79‌

Chevron

Corp

9,308‌

1,671‌

ConocoPhillips

6,520‌

769‌

Coterra

Energy

Inc

4,126‌

101‌

Devon

Energy

Corp

3,419‌

210‌

Diamondback

Energy

Inc

921‌

126‌

EOG

Resources

Inc

3,073‌

398‌

EQT

Corp

1,921‌

65‌

Exxon

Mobil

Corp

(d)

21,546‌

2,377‌

Hess

Corp

1,452‌

206‌

Marathon

Oil

Corp

3,323‌

90‌

Marathon

Petroleum

Corp

2,452‌

285‌

Occidental

Petroleum

Corp

3,805‌

240‌

Phillips

66

2,473‌

257‌

Pioneer

Natural

Resources

Co

1,243‌

284‌

Valero

Energy

Corp

2,017‌

256‌

$

7,414‌

Oil

&

Gas

Services

-

0

.41

%

Baker

Hughes

Co

5,240‌

155‌

Halliburton

Co

4,750‌

187‌

Schlumberger

Ltd

7,418‌

396‌

$

738‌

Packaging

&

Containers

-

0

.18

%

Amcor

PLC

7,791‌

93‌

Ball

Corp

1,642‌

84‌

Packaging

Corp

of

America

485‌

62‌

Sealed

Air

Corp

756‌

37‌

Westrock

Co

1,330‌

47‌

$

323‌

Pharmaceuticals

-

6

.64

%

AbbVie

Inc

9,252‌

1,495‌

AmerisourceBergen

Corp

847‌

140‌

Becton

Dickinson

and

Co

1,492‌

379‌

Bristol-Myers

Squibb

Co

11,124‌

800‌

Cardinal

Health

Inc

1,372‌

106‌

Cigna

Corp

1,599‌

530‌

CVS

Health

Corp

6,874‌

641‌

Dexcom

Inc

(c)

2,021‌

229‌

Eli

Lilly

&

Co

4,126‌

1,509‌

Henry

Schein

Inc

(c)

709‌

57‌

Johnson

&

Johnson

13,679‌

2,416‌

McKesson

Corp

742‌

278‌

Merck

&

Co

Inc

13,264‌

1,472‌

Organon

&

Co

1,330‌

37‌

Pfizer

Inc

29,367‌

1,505‌

Viatris

Inc

6,344‌

71‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Pharmaceuticals

(continued)

Zoetis

Inc

2,439‌

$

357‌

$

12,022‌

Pipelines

-

0

.35

%

Kinder

Morgan

Inc

10,348‌

187‌

ONEOK

Inc

2,338‌

153‌

Targa

Resources

Corp

1,184‌

87‌

Williams

Cos

Inc/The

6,372‌

210‌

$

637‌

Real

Estate

-

0

.07

%

CBRE

Group

Inc

(c)

1,653‌

127‌

REITs

-

2

.44

%

Alexandria

Real

Estate

Equities

Inc

781‌

114‌

American

Tower

Corp

2,435‌

516‌

AvalonBay

Communities

Inc

731‌

118‌

Boston

Properties

Inc

746‌

50‌

Camden

Property

Trust

557‌

62‌

Crown

Castle

Inc

2,265‌

307‌

Digital

Realty

Trust

Inc

1,504‌

151‌

Equinix

Inc

484‌

317‌

Equity

Residential

1,779‌

105‌

Essex

Property

Trust

Inc

339‌

72‌

Extra

Space

Storage

Inc

700‌

103‌

Federal

Realty

Investment

Trust

382‌

39‌

Healthpeak

Properties

Inc

2,810‌

71‌

Host

Hotels

&

Resorts

Inc

3,740‌

60‌

Invitation

Homes

Inc

3,038‌

90‌

Iron

Mountain

Inc

1,520‌

76‌

Kimco

Realty

Corp

3,235‌

69‌

Mid-America

Apartment

Communities

Inc

604‌

95‌

Prologis

Inc

4,829‌

544‌

Public

Storage

827‌

232‌

Realty

Income

Corp

3,281‌

208‌

Regency

Centers

Corp

805‌

50‌

SBA

Communications

Corp

564‌

158‌

Simon

Property

Group

Inc

1,710‌

201‌

UDR

Inc

1,600‌

62‌

Ventas

Inc

2,091‌

94‌

VICI

Properties

Inc

5,038‌

163‌

Vornado

Realty

Trust

838‌

17‌

Welltower

Inc

2,472‌

162‌

Weyerhaeuser

Co

3,851‌

119‌

$

4,425‌

Retail

-

5

.17

%

Advance

Auto

Parts

Inc

315‌

46‌

AutoZone

Inc

(c)

99‌

244‌

Bath

&

Body

Works

Inc

1,194‌

50‌

Best

Buy

Co

Inc

1,048‌

84‌

CarMax

Inc

(c)

827‌

50‌

Chipotle

Mexican

Grill

Inc

(c)

145‌

201‌

Costco

Wholesale

Corp

2,315‌

1,057‌

Darden

Restaurants

Inc

640‌

89‌

Dollar

General

Corp

1,181‌

291‌

Dollar

Tree

Inc

(c)

1,101‌

156‌

Domino's

Pizza

Inc

186‌

64‌

Genuine

Parts

Co

737‌

128‌

Home

Depot

Inc/The

5,355‌

1,691‌

Lowe's

Cos

Inc

3,248‌

647‌

McDonald's

Corp

3,832‌

1,010‌

O'Reilly

Automotive

Inc

(c)

328‌

277‌

Ross

Stores

Inc

1,816‌

211‌

Starbucks

Corp

6,005‌

596‌

Target

Corp

2,408‌

359‌

TJX

Cos

Inc/The

6,075‌

484‌

Tractor

Supply

Co

578‌

130‌

Ulta

Beauty

Inc

(c)

268‌

126‌

Walgreens

Boots

Alliance

Inc

3,755‌

140‌

Walmart

Inc

7,385‌

1,047‌

Yum!

Brands

Inc

1,474‌

189‌

$

9,367‌

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2022

See

accompanying

notes.

217

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Semiconductors

-

4

.53

%

Advanced

Micro

Devices

Inc

(c)

8,435‌

$

546‌

Analog

Devices

Inc

2,691‌

442‌

Applied

Materials

Inc

4,501‌

438‌

Broadcom

Inc

2,118‌

1,184‌

Intel

Corp

21,591‌

571‌

KLA

Corp

741‌

279‌

Lam

Research

Corp

714‌

300‌

Microchip

Technology

Inc

2,879‌

202‌

Micron

Technology

Inc

5,688‌

284‌

Monolithic

Power

Systems

Inc

233‌

83‌

NVIDIA

Corp

13,028‌

1,904‌

NXP

Semiconductors

NV

1,356‌

214‌

ON

Semiconductor

Corp

(c)

2,262‌

141‌

Qorvo

Inc

(c)

531‌

48‌

QUALCOMM

Inc

5,864‌

645‌

Skyworks

Solutions

Inc

839‌

77‌

Teradyne

Inc

815‌

71‌

Texas

Instruments

Inc

4,749‌

785‌

$

8,214‌

Shipbuilding

-

0

.03

%

Huntington

Ingalls

Industries

Inc

208‌

48‌

Software

-

8

.56

%

Activision

Blizzard

Inc

3,725‌

285‌

Adobe

Inc

(c)

2,433‌

819‌

Akamai

Technologies

Inc

(c)

823‌

69‌

ANSYS

Inc

(c)

455‌

110‌

Autodesk

Inc

(c)

1,130‌

211‌

Broadridge

Financial

Solutions

Inc

615‌

82‌

Cadence

Design

Systems

Inc

(c)

1,435‌

231‌

Ceridian

HCM

Holding

Inc

(c)

803‌

51‌

Electronic

Arts

Inc

1,373‌

168‌

Fidelity

National

Information

Services

Inc

3,105‌

211‌

Fiserv

Inc

(c)

3,323‌

336‌

Intuit

Inc

1,474‌

574‌

Jack

Henry

&

Associates

Inc

381‌

67‌

Microsoft

Corp

(d)

38,999‌

9,353‌

MSCI

Inc

419‌

195‌

Oracle

Corp

8,040‌

657‌

Paychex

Inc

1,678‌

194‌

Paycom

Software

Inc

(c)

254‌

79‌

PTC

Inc

(c)

553‌

66‌

Roper

Technologies

Inc

554‌

239‌

Salesforce

Inc

(c)

5,231‌

694‌

ServiceNow

Inc

(c)

1,056‌

410‌

Synopsys

Inc

(c)

799‌

255‌

Take-Two

Interactive

Software

Inc

(c)

825‌

86‌

Tyler

Technologies

Inc

(c)

217‌

70‌

$

15,512‌

Telecommunications

-

1

.99

%

Arista

Networks

Inc

(c)

1,294‌

157‌

AT&T

Inc

37,286‌

687‌

Cisco

Systems

Inc

21,482‌

1,023‌

Corning

Inc

3,982‌

127‌

Juniper

Networks

Inc

1,697‌

54‌

Lumen

Technologies

Inc

4,961‌

26‌

Motorola

Solutions

Inc

874‌

225‌

T-Mobile

US

Inc

(c)

3,125‌

438‌

Verizon

Communications

Inc

21,972‌

866‌

$

3,603‌

Toys,

Games

&

Hobbies

-

0

.02

%

Hasbro

Inc

679‌

41‌

Transportation

-

1

.40

%

CH

Robinson

Worldwide

Inc

616‌

56‌

CSX

Corp

11,000‌

341‌

Expeditors

International

of

Washington

Inc

833‌

87‌

FedEx

Corp

1,252‌

217‌

JB

Hunt

Transport

Services

Inc

433‌

75‌

Norfolk

Southern

Corp

1,212‌

299‌

Old

Dominion

Freight

Line

Inc

474‌

134‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Transportation

(continued)

Union

Pacific

Corp

3,217‌

$

666‌

United

Parcel

Service

Inc

3,818‌

664‌

$

2,539‌

Water

-

0

.08

%

American

Water

Works

Co

Inc

951‌

145‌

TOTAL

COMMON

STOCKS

$

168,103‌

TOTAL

PURCHASED

OPTIONS

-

0.63%

$

1,133‌

Total

Investments

$

180,255‌

Other

Assets

and

Liabilities

-  0.50%

900‌

TOTAL

NET

ASSETS

-

100.00%

$

181,155‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

(d)

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

$2,564

or

1.42%

of

net

assets.

Portfolio

Summary  (unaudited)

Sector

Percent

Consumer,

Non-cyclical

21

.78‌

%

Technology

20

.11‌

%

Financial

14

.53‌

%

Communications

10

.06‌

%

Consumer,

Cyclical

8

.39‌

%

Industrial

7

.84‌

%

Money

Market

Funds

5

.95‌

%

Energy

5

.04‌

%

Utilities

2

.96‌

%

Basic

Materials

2

.08‌

%

Purchased

Options

0

.63‌

%

Investment

Companies

0

.13‌

%

Other

Assets

and

Liabilities

0

.50‌

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2022

See

accompanying

notes.

218

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

12,127‌

$

1,345‌

$

10,782‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

16,905‌

84,155‌

101,060‌

—‌

$

16,905‌

$

96,282‌

$

102,405‌

$

10,782‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

21‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

127‌

—‌

—‌

—‌

$

148‌

$

—‌

$

—‌

$

—‌

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

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Index

N/A

50‌

$

5‌

$

3,950

.00‌

01/23/2023

$

213‌

$

149‌

$

(

64‌

)

Put

-

S&P

500

Index

N/A

200‌

20‌

$

3,780

.00‌

01/23/2023

1,324‌

984‌

(

340‌

)

Total

$

1,537‌

$

1,133‌

$

(

404‌

)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Index

N/A

50‌

$

5‌

$

3,970

.00‌

01/23/2023

$

(

179‌

)

$

(

121‌

)

$

58‌

Put

-

S&P

500

Index

N/A

200‌

20‌

$

3,700

.00‌

01/23/2023

(

839‌

)

(

540‌

)

299‌

Total

$

(

1,018‌

)

$

(

661‌

)

$

357‌

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;

March

2023

Long

15‌

$

2,896‌

$

(

45‌

)

Total

$

(

45‌

)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

MidCap

Account

December

31,

2022

See

accompanying

notes.

219

INVESTMENT

COMPANIES

-

0

.25

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0

.25

%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

1,496,752‌

$

1,497‌

TOTAL

INVESTMENT

COMPANIES

$

1,497‌

COMMON

STOCKS

-

99

.99

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

9

.10

%

HEICO

Corp

-

Class

A

185,635‌

$

22,248‌

TransDigm

Group

Inc

49,606‌

31,235‌

$

53,483‌

Banks

-

0

.71

%

First

Republic

Bank/CA

34,407‌

4,194‌

Beverages

-

0

.07

%

Brown-Forman

Corp

-

B

Shares

6,369‌

418‌

Building

Materials

-

4

.77

%

Martin

Marietta

Materials

Inc

22,309‌

7,540‌

Summit

Materials

Inc

(c)

84,486‌

2,398‌

Vulcan

Materials

Co

103,333‌

18,095‌

$

28,033‌

Chemicals

-

1

.16

%

Air

Products

and

Chemicals

Inc

13,521‌

4,168‌

Perimeter

Solutions

SA

(c)

281,317‌

2,571‌

Perimeter

Solutions

SA

-

Warrants

(c)

97,671‌

74‌

$

6,813‌

Commercial

Services

-

9

.22

%

CoStar

Group

Inc

(c)

348,601‌

26,940‌

Gartner

Inc

(c)

24,060‌

8,088‌

Moody's

Corp

29,000‌

8,080‌

TransUnion

90,649‌

5,144‌

Verisk

Analytics

Inc

33,546‌

5,918‌

$

54,170‌

Distribution

&

Wholesale

-

5

.88

%

Copart

Inc

(c)

427,504‌

26,031‌

Fastenal

Co

180,846‌

8,557‌

$

34,588‌

Diversified

Financial

Services

-

1

.39

%

Brookfield

Asset

Management

Ltd

(c)

173,813‌

4,983‌

Brookfield

Reinsurance

Ltd

(c)

4,484‌

140‌

Credit

Acceptance

Corp

(c)

6,467‌

3,068‌

$

8,191‌

Electric

-

3

.23

%

Brookfield

Infrastructure

Partners

LP

406,717‌

12,604‌

Brookfield

Renewable

Corp

70,661‌

1,946‌

Brookfield

Renewable

Partners

LP

174,560‌

4,424‌

$

18,974‌

Electronics

-

2

.51

%

Agilent

Technologies

Inc

67,949‌

10,169‌

Mettler-Toledo

International

Inc

(c)

3,152‌

4,556‌

$

14,725‌

Entertainment

-

3

.60

%

Live

Nation

Entertainment

Inc

(c)

170,062‌

11,860‌

Vail

Resorts

Inc

39,091‌

9,317‌

$

21,177‌

Healthcare

-

Products

-

0

.94

%

IDEXX

Laboratories

Inc

(c)

13,608‌

5,552‌

Home

Builders

-

1

.76

%

Lennar

Corp

-

A

Shares

41,879‌

3,790‌

Lennar

Corp

-

B

Shares

1,155‌

86‌

NVR

Inc

(c)

1,399‌

6,453‌

$

10,329‌

Insurance

-

10

.00

%

Aon

PLC

16,571‌

4,973‌

Arch

Capital

Group

Ltd

(c)

145,267‌

9,120‌

Brown

&

Brown

Inc

264,471‌

15,067‌

F&G

Annuities

&

Life

Inc

1,995‌

40‌

Fidelity

National

Financial

Inc

29,349‌

1,104‌

Markel

Corp

(c)

14,324‌

18,872‌

Progressive

Corp/The

73,849‌

9,579‌

$

58,755‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Internet

-

2

.78

%

VeriSign

Inc

(c)

58,697‌

$

12,059‌

Wix.com

Ltd

(c)

55,658‌

4,276‌

$

16,335‌

Lodging

-

4

.41

%

Hilton

Worldwide

Holdings

Inc

165,127‌

20,866‌

Hyatt

Hotels

Corp

(c)

55,747‌

5,042‌

$

25,908‌

Machinery

-

Diversified

-

0

.52

%

Cognex

Corp

32,096‌

1,512‌

Enovis

Corp

(c)

15,325‌

820‌

Esab

Corp

15,325‌

719‌

$

3,051‌

Media

-

1

.63

%

Liberty

Broadband

Corp

-

A

Shares

(c)

5,444‌

413‌

Liberty

Broadband

Corp

-

C

Shares

(c)

7,837‌

598‌

Liberty

Media

Corp-Liberty

Formula

One

-

A

Shares

(c)

15,460‌

826‌

Liberty

Media

Corp-Liberty

Formula

One

-

C

Shares

(c)

129,745‌

7,756‌

$

9,593‌

Private

Equity

-

7

.82

%

Ares

Management

Corp

41,780‌

2,859‌

Brookfield

Corp

698,022‌

21,960‌

KKR

&

Co

Inc

375,506‌

17,431‌

Onex

Corp

77,151‌

3,712‌

$

45,962‌

Real

Estate

-

2

.46

%

CBRE

Group

Inc

(c)

128,980‌

9,926‌

Howard

Hughes

Corp/The

(c)

52,901‌

4,043‌

Kennedy-Wilson

Holdings

Inc

30,203‌

475‌

$

14,444‌

REITs

-

2

.88

%

SBA

Communications

Corp

60,357‌

16,919‌

Retail

-

11

.34

%

CarMax

Inc

(c)

213,826‌

13,020‌

Dollar

General

Corp

39,427‌

9,709‌

Domino's

Pizza

Inc

37,353‌

12,939‌

O'Reilly

Automotive

Inc

(c)

33,750‌

28,486‌

Ross

Stores

Inc

21,744‌

2,524‌

$

66,678‌

Semiconductors

-

1

.68

%

Microchip

Technology

Inc

140,417‌

9,864‌

Software

-

10

.13

%

ANSYS

Inc

(c)

13,300‌

3,213‌

Autodesk

Inc

(c)

62,603‌

11,699‌

Black

Knight

Inc

(c)

161,255‌

9,957‌

Constellation

Software

Inc/Canada

1,812‌

2,823‌

Guidewire

Software

Inc

(c)

15,831‌

990‌

MSCI

Inc

9,213‌

4,286‌

Roper

Technologies

Inc

39,292‌

16,978‌

Tyler

Technologies

Inc

(c)

29,759‌

9,595‌

$

59,541‌

TOTAL

COMMON

STOCKS

$

587,697‌

Total

Investments

$

589,194‌

Other

Assets

and

Liabilities

-  (0.24)%

(

1,423‌

)

TOTAL

NET

ASSETS

-

100.00%

$

587,771‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Schedule

of

Investments

MidCap

Account

December

31,

2022

See

accompanying

notes.

220

Portfolio

Summary  (unaudited)

Sector

Percent

Consumer,

Cyclical

26

.99‌

%

Financial

25

.26‌

%

Industrial

16

.90‌

%

Technology

11

.81‌

%

Consumer,

Non-cyclical

10

.23‌

%

Communications

4

.41‌

%

Utilities

3

.23‌

%

Basic

Materials

1

.16‌

%

Money

Market

Funds

0

.25‌

%

Other

Assets

and

Liabilities

(

0

.24‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

3,602‌

$

2,105‌

$

1,497‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

1,988‌

57,206‌

59,194‌

—‌

$

1,988‌

$

60,808‌

$

61,299‌

$

1,497‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

2‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

17‌

—‌

—‌

—‌

$

19‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Principal

Capital

Appreciation

Account

December

31,

2022

See

accompanying

notes.

221

INVESTMENT

COMPANIES

-

0

.91

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0

.91

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

8,858‌

$

9‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

1,400,759‌

1,401‌

$

1,410‌

TOTAL

INVESTMENT

COMPANIES

$

1,410‌

COMMON

STOCKS

-

97

.08

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

0

.94

%

Raytheon

Technologies

Corp

14,308‌

$

1,444‌

Apparel

-

1

.71

%

Deckers

Outdoor

Corp

(d)

5,426‌

2,166‌

NIKE

Inc

3,969‌

464‌

$

2,630‌

Automobile

Manufacturers

-

1

.84

%

Cummins

Inc

5,104‌

1,237‌

PACCAR

Inc

16,196‌

1,603‌

$

2,840‌

Automobile

Parts

&

Equipment

-

0

.20

%

Magna

International

Inc

5,596‌

314‌

Banks

-

4

.84

%

First

Republic

Bank/CA

5,782‌

705‌

JPMorgan

Chase

&

Co

23,701‌

3,178‌

Morgan

Stanley

22,808‌

1,939‌

PNC

Financial

Services

Group

Inc/The

10,397‌

1,642‌

$

7,464‌

Beverages

-

1

.50

%

Keurig

Dr

Pepper

Inc

64,870‌

2,313‌

Biotechnology

-

0

.07

%

Provention

Bio

Inc

(d)

10,390‌

110‌

Chemicals

-

2

.98

%

Air

Products

and

Chemicals

Inc

6,158‌

1,898‌

Albemarle

Corp

3,533‌

766‌

FMC

Corp

15,505‌

1,935‌

$

4,599‌

Commercial

Services

-

0

.81

%

Morningstar

Inc

3,283‌

711‌

PayPal

Holdings

Inc

(d)

7,507‌

535‌

$

1,246‌

Computers

-

5

.34

%

Amdocs

Ltd

13,634‌

1,239‌

Apple

Inc

53,824‌

6,994‌

$

8,233‌

Consumer

Products

-

0

.62

%

Church

&

Dwight

Co

Inc

11,830‌

954‌

Diversified

Financial

Services

-

8

.15

%

Ameriprise

Financial

Inc

6,589‌

2,052‌

BlackRock

Inc

937‌

664‌

Charles

Schwab

Corp/The

17,959‌

1,495‌

Discover

Financial

Services

6,156‌

602‌

Nasdaq

Inc

36,561‌

2,243‌

Visa

Inc

26,469‌

5,499‌

$

12,555‌

Electric

-

3

.49

%

Constellation

Energy

Corp

18,428‌

1,589‌

NextEra

Energy

Inc

25,957‌

2,170‌

Xcel

Energy

Inc

23,109‌

1,620‌

$

5,379‌

Electronics

-

0

.52

%

Honeywell

International

Inc

3,756‌

805‌

Energy

-

Alternate

Sources

-

0

.39

%

Enphase

Energy

Inc

(d)

2,296‌

608‌

Environmental

Control

-

1

.14

%

Republic

Services

Inc

13,611‌

1,756‌

Food

-

1

.03

%

Simply

Good

Foods

Co/The

(d)

41,857‌

1,592‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Healthcare

-

Products

-

3

.39

%

Abbott

Laboratories

17,851‌

$

1,960‌

Cooper

Cos

Inc/The

1,582‌

523‌

Edwards

Lifesciences

Corp

(d)

6,276‌

468‌

Medtronic

PLC

5,315‌

413‌

Thermo

Fisher

Scientific

Inc

3,366‌

1,854‌

$

5,218‌

Healthcare

-

Services

-

2

.90

%

UnitedHealth

Group

Inc

8,442‌

4,476‌

Home

Furnishings

-

0

.26

%

Sonos

Inc

(d)

24,119‌

408‌

Insurance

-

2

.85

%

Fidelity

National

Financial

Inc

14,793‌

556‌

Marsh

&

McLennan

Cos

Inc

11,274‌

1,866‌

Progressive

Corp/The

15,138‌

1,964‌

$

4,386‌

Internet

-

5

.18

%

Alphabet

Inc

-

A

Shares

(d)

50,867‌

4,488‌

Amazon.com

Inc

(d)

28,542‌

2,398‌

Meta

Platforms

Inc

(d)

9,102‌

1,095‌

$

7,981‌

Machinery

-

Construction

&

Mining

-

0

.86

%

Epiroc

AB

-

A

Shares

72,731‌

1,324‌

Machinery

-

Diversified

-

1

.02

%

Deere

&

Co

3,667‌

1,572‌

Media

-

3

.03

%

Charter

Communications

Inc

(d)

1,221‌

414‌

Comcast

Corp

-

Class

A

68,762‌

2,405‌

Nexstar

Media

Group

Inc

7,571‌

1,325‌

Walt

Disney

Co/The

(d)

5,972‌

519‌

$

4,663‌

Miscellaneous

Manufacturers

-

2

.22

%

Parker-Hannifin

Corp

6,496‌

1,890‌

Trane

Technologies

PLC

9,119‌

1,533‌

$

3,423‌

Oil

&

Gas

-

5

.21

%

Chevron

Corp

18,201‌

3,267‌

EOG

Resources

Inc

14,914‌

1,932‌

Helmerich

&

Payne

Inc

20,362‌

1,009‌

Marathon

Petroleum

Corp

15,571‌

1,812‌

$

8,020‌

Oil

&

Gas

Services

-

0

.21

%

Schlumberger

Ltd

5,945‌

318‌

Pharmaceuticals

-

7

.56

%

Bristol-Myers

Squibb

Co

15,901‌

1,144‌

CVS

Health

Corp

24,803‌

2,311‌

Eli

Lilly

&

Co

6,955‌

2,544‌

Merck

&

Co

Inc

19,878‌

2,206‌

Pfizer

Inc

36,961‌

1,894‌

Roche

Holding

AG

ADR

33,059‌

1,294‌

SIGA

Technologies

Inc

(e)

33,818‌

249‌

$

11,642‌

REITs

-

2

.90

%

Alexandria

Real

Estate

Equities

Inc

6,520‌

950‌

American

Tower

Corp

4,338‌

919‌

Extra

Space

Storage

Inc

3,468‌

510‌

Host

Hotels

&

Resorts

Inc

93,624‌

1,503‌

Prologis

Inc

5,150‌

580‌

$

4,462‌

Retail

-

6

.80

%

Chipotle

Mexican

Grill

Inc

(d)

725‌

1,006‌

Costco

Wholesale

Corp

3,292‌

1,503‌

Home

Depot

Inc/The

6,248‌

1,973‌

Lululemon

Athletica

Inc

(d)

1,938‌

621‌

O'Reilly

Automotive

Inc

(d)

2,287‌

1,930‌

Papa

John's

International

Inc

8,767‌

722‌

Starbucks

Corp

3,497‌

347‌

Target

Corp

2,674‌

398‌

Schedule

of

Investments

Principal

Capital

Appreciation

Account

December

31,

2022

See

accompanying

notes.

222

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Retail

(continued)

Tractor

Supply

Co

8,783‌

$

1,976‌

$

10,476‌

Semiconductors

-

4

.53

%

Broadcom

Inc

5,946‌

3,325‌

Lam

Research

Corp

3,126‌

1,314‌

Microchip

Technology

Inc

17,480‌

1,228‌

NVIDIA

Corp

7,625‌

1,114‌

$

6,981‌

Software

-

9

.09

%

Adobe

Inc

(d)

6,166‌

2,075‌

Fair

Isaac

Corp

(d)

3,222‌

1,929‌

Microsoft

Corp

29,348‌

7,037‌

Roper

Technologies

Inc

4,338‌

1,875‌

Salesforce

Inc

(d)

2,763‌

366‌

ServiceNow

Inc

(d)

982‌

381‌

Veeva

Systems

Inc

(d)

2,132‌

344‌

$

14,007‌

Telecommunications

-

1

.67

%

T-Mobile

US

Inc

(d)

18,328‌

2,566‌

Transportation

-

1

.83

%

Expeditors

International

of

Washington

Inc

14,020‌

1,457‌

Union

Pacific

Corp

6,552‌

1,357‌

$

2,814‌

TOTAL

COMMON

STOCKS

$

149,579‌

Total

Investments

$

150,989‌

Other

Assets

and

Liabilities

-  2.01%

3,090‌

TOTAL

NET

ASSETS

-

100.00%

$

154,079‌

(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

$9

or

0.01%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

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,

the

value

of

these

securities

totaled

$8

or

0.01%

of

net

assets.

Portfolio

Summary  (unaudited)

Sector

Percent

Technology

18

.96‌

%

Financial

18

.74‌

%

Consumer,

Non-cyclical

17

.88‌

%

Consumer,

Cyclical

10

.81‌

%

Communications

9

.88‌

%

Industrial

8

.53‌

%

Energy

5

.81‌

%

Utilities

3

.49‌

%

Basic

Materials

2

.98‌

%

Money

Market

Funds

0

.91‌

%

Other

Assets

and

Liabilities

2

.01‌

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

4,966‌

$

3,565‌

$

1,401‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

1,996‌

46,967‌

48,963‌

—‌

$

1,996‌

$

51,933‌

$

52,528‌

$

1,401‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

8‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

40‌

—‌

—‌

—‌

$

48‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Principal

LifeTime

2010

Account

December

31,

2022

See

accompanying

notes.

223

INVESTMENT

COMPANIES

-

100

.01

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

55

.25

%

Blue

Chip

Fund

(a),(b)

37,626‌

$

1,063‌

Core

Fixed

Income

Fund

(a)

1,398,264‌

11,773‌

Diversified

International

Fund

(a)

136,703‌

1,557‌

Diversified

Real

Asset

Fund

(a)

75,035‌

825‌

International

Small

Company

Fund

(a)

32,066‌

291‌

LargeCap

Growth

Fund

I

(a),(b)

78,479‌

1,032‌

MidCap

Fund

(a),(b)

5,979‌

187‌

MidCap

Value

Fund

I

(a)

48,608‌

750‌

Origin

Emerging

Markets

Fund

(a)

41,969‌

374‌

SmallCap

Growth

Fund

I

(a),(b)

18,362‌

223‌

SmallCap

Value

Fund

II

(a)

22,473‌

235‌

$

18,310‌

Principal

Funds,

Inc.

Institutional

Class

-

44

.76

%

Equity

Income

Fund

(a)

32,417‌

1,131‌

High

Income

Fund

(a)

279,353‌

2,187‌

Inflation

Protection

Fund

(a)

283,360‌

2,173‌

LargeCap

S&P

500

Index

Fund

(a)

56,178‌

1,082‌

LargeCap

Value

Fund

III

(a)

66,423‌

1,123‌

MidCap

Growth

Fund

III

(a),(b)

50,729‌

519‌

Overseas

Fund

(a)

85,434‌

790‌

Short-Term

Income

Fund

(a)

506,131‌

5,831‌

$

14,836‌

TOTAL

INVESTMENT

COMPANIES

$

33,146‌

Total

Investments

$

33,146‌

Other

Assets

and

Liabilities

-  (0.01)%

(

4‌

)

TOTAL

NET

ASSETS

-

100.00%

$

33,142‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

70

.97‌

%

Domestic

Equity

Funds

22

.16‌

%

International

Equity

Funds

4

.39‌

%

Specialty

Funds

2

.49‌

%

Other

Assets

and

Liabilities

(

0

.01‌

)

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Principal

LifeTime

2010

Account

December

31,

2022

See

accompanying

notes.

224

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

1,514‌

$

467‌

$

433‌

$

1,063‌

Core

Fixed

Income

Fund

11,735‌

4,917‌

2,904‌

11,773‌

Diversified

International

Fund

2,492‌

636‌

1,111‌

1,557‌

Diversified

Real

Asset

Fund

857‌

310‌

185‌

825‌

Equity

Income

Fund

1,414‌

411‌

465‌

1,131‌

High

Income

Fund

2,654‌

896‌

901‌

2,187‌

Inflation

Protection

Fund

2,288‌

981‌

657‌

2,173‌

International

Small

Company

Fund

463‌

118‌

195‌

291‌

LargeCap

Growth

Fund

I

1,456‌

620‌

414‌

1,032‌

LargeCap

S&P

500

Index

Fund

943‌

763‌

359‌

1,082‌

LargeCap

Value

Fund

III

1,432‌

460‌

580‌

1,123‌

MidCap

Fund

721‌

374‌

680‌

187‌

MidCap

Growth

Fund

III

—‌

549‌

42‌

519‌

MidCap

Value

Fund

I

728‌

334‌

215‌

750‌

Origin

Emerging

Markets

Fund

612‌

188‌

259‌

374‌

Overseas

Fund

1,046‌

334‌

484‌

790‌

Short-Term

Income

Fund

6,237‌

2,140‌

2,198‌

5,831‌

SmallCap

Growth

Fund

I

329‌

96‌

106‌

223‌

SmallCap

Value

Fund

II

380‌

108‌

196‌

235‌

$

37,301‌

$

14,702‌

$

12,384‌

$

33,146‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

19‌

$

7‌

$

(

504‌

)

Core

Fixed

Income

Fund

334‌

(

67‌

)

—‌

(

1,908‌

)

Diversified

International

Fund

17‌

(

2‌

)

—‌

(

458‌

)

Diversified

Real

Asset

Fund

52‌

(

1‌

)

48‌

(

156‌

)

Equity

Income

Fund

24‌

1‌

40‌

(

230‌

)

High

Income

Fund

149‌

(

42‌

)

—‌

(

420‌

)

Inflation

Protection

Fund

130‌

(

3‌

)

—‌

(

436‌

)

International

Small

Company

Fund

4‌

—‌

—‌

(

95‌

)

LargeCap

Growth

Fund

I

—‌

(

1‌

)

107‌

(

629‌

)

LargeCap

S&P

500

Index

Fund

16‌

(

13‌

)

15‌

(

252‌

)

LargeCap

Value

Fund

III

19‌

(

1‌

)

86‌

(

188‌

)

MidCap

Fund

—‌

92‌

6‌

(

320‌

)

MidCap

Growth

Fund

III

—‌

—‌

9‌

12‌

MidCap

Value

Fund

I

11‌

(

1‌

)

40‌

(

96‌

)

Origin

Emerging

Markets

Fund

11‌

(

30‌

)

—‌

(

137‌

)

Overseas

Fund

19‌

30‌

41‌

(

136‌

)

Short-Term

Income

Fund

103‌

(

38‌

)

—‌

(

310‌

)

SmallCap

Growth

Fund

I

—‌

(

4‌

)

2‌

(

92‌

)

SmallCap

Value

Fund

II

7‌

(

3‌

)

18‌

(

54‌

)

$

896‌

$

(

64‌

)

$

419‌

$

(

6,409‌

)

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

2020

Account

December

31,

2022

See

accompanying

notes.

225

INVESTMENT

COMPANIES

-

100

.00

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

58

.17

%

Blue

Chip

Fund

(a),(b)

227,077‌

$

6,417‌

Core

Fixed

Income

Fund

(a)

5,967,027‌

50,242‌

Diversified

International

Fund

(a)

814,045‌

9,272‌

Diversified

Real

Asset

Fund

(a)

342,908‌

3,769‌

International

Small

Company

Fund

(a)

191,489‌

1,735‌

LargeCap

Growth

Fund

I

(a),(b)

473,462‌

6,226‌

MidCap

Fund

(a),(b)

35,729‌

1,116‌

MidCap

Value

Fund

I

(a)

290,199‌

4,481‌

Origin

Emerging

Markets

Fund

(a)

252,919‌

2,256‌

SmallCap

Growth

Fund

I

(a),(b)

106,226‌

1,288‌

SmallCap

Value

Fund

II

(a)

129,999‌

1,358‌

$

88,160‌

Principal

Funds,

Inc.

Institutional

Class

-

41

.83

%

Equity

Income

Fund

(a)

195,565‌

6,821‌

High

Income

Fund

(a)

1,094,887‌

8,573‌

Inflation

Protection

Fund

(a)

1,110,462‌

8,517‌

LargeCap

S&P

500

Index

Fund

(a)

339,683‌

6,542‌

LargeCap

Value

Fund

III

(a)

401,397‌

6,788‌

MidCap

Growth

Fund

III

(a),(b)

303,103‌

3,098‌

Overseas

Fund

(a)

523,922‌

4,846‌

Short-Term

Income

Fund

(a)

1,580,761‌

18,211‌

$

63,396‌

TOTAL

INVESTMENT

COMPANIES

$

151,556‌

Total

Investments

$

151,556‌

Other

Assets

and

Liabilities

-  0.00%

(

5‌

)

TOTAL

NET

ASSETS

-

100.00%

$

151,551‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

62

.56‌

%

Domestic

Equity

Funds

29

.12‌

%

International

Equity

Funds

5

.83‌

%

Specialty

Funds

2

.49‌

%

Other

Assets

and

Liabilities

0

.00‌

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Principal

LifeTime

2020

Account

December

31,

2022

See

accompanying

notes.

226

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

10,286‌

$

1,653‌

$

2,336‌

$

6,417‌

Core

Fixed

Income

Fund

56,952‌

11,668‌

9,494‌

50,242‌

Diversified

International

Fund

17,182‌

1,967‌

6,702‌

9,272‌

Diversified

Real

Asset

Fund

4,441‌

767‌

717‌

3,769‌

Equity

Income

Fund

9,547‌

1,462‌

2,705‌

6,821‌

High

Income

Fund

11,542‌

2,280‌

3,310‌

8,573‌

Inflation

Protection

Fund

9,938‌

2,678‌

2,325‌

8,517‌

International

Small

Company

Fund

3,202‌

366‌

1,194‌

1,735‌

LargeCap

Growth

Fund

I

9,881‌

2,667‌

2,245‌

6,226‌

LargeCap

S&P

500

Index

Fund

7,019‌

3,295‌

1,997‌

6,542‌

LargeCap

Value

Fund

III

9,686‌

1,761‌

3,439‌

6,788‌

MidCap

Fund

4,866‌

1,697‌

3,978‌

1,116‌

MidCap

Growth

Fund

III

—‌

3,166‌

143‌

3,098‌

MidCap

Value

Fund

I

4,804‌

1,474‌

1,176‌

4,481‌

Origin

Emerging

Markets

Fund

4,052‌

808‌

1,561‌

2,256‌

Overseas

Fund

7,232‌

1,251‌

2,922‌

4,846‌

Short-Term

Income

Fund

20,827‌

3,355‌

4,848‌

18,211‌

SmallCap

Growth

Fund

I

2,257‌

332‌

663‌

1,288‌

SmallCap

Value

Fund

II

2,624‌

401‌

1,302‌

1,358‌

$

196,338‌

$

43,048‌

$

53,057‌

$

151,556‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(

114‌

)

$

45‌

$

(

3,072‌

)

Core

Fixed

Income

Fund

1,455‌

(

169‌

)

—‌

(

8,715‌

)

Diversified

International

Fund

103‌

(

603‌

)

—‌

(

2,572‌

)

Diversified

Real

Asset

Fund

240‌

(

8‌

)

219‌

(

714‌

)

Equity

Income

Fund

149‌

99‌

246‌

(

1,582‌

)

High

Income

Fund

604‌

(

260‌

)

—‌

(

1,679‌

)

Inflation

Protection

Fund

511‌

(

7‌

)

—‌

(

1,767‌

)

International

Small

Company

Fund

22‌

(

25‌

)

—‌

(

614‌

)

LargeCap

Growth

Fund

I

—‌

56‌

648‌

(

4,133‌

)

LargeCap

S&P

500

Index

Fund

100‌

(

173‌

)

90‌

(

1,602‌

)

LargeCap

Value

Fund

III

113‌

105‌

523‌

(

1,325‌

)

MidCap

Fund

—‌

949‌

35‌

(

2,418‌

)

MidCap

Growth

Fund

III

—‌

3‌

57‌

72‌

MidCap

Value

Fund

I

66‌

(

7‌

)

238‌

(

614‌

)

Origin

Emerging

Markets

Fund

67‌

(

261‌

)

—‌

(

782‌

)

Overseas

Fund

120‌

71‌

255‌

(

786‌

)

Short-Term

Income

Fund

333‌

(

105‌

)

—‌

(

1,018‌

)

SmallCap

Growth

Fund

I

—‌

(

6‌

)

10‌

(

632‌

)

SmallCap

Value

Fund

II

39‌

210‌

108‌

(

575‌

)

$

3,922‌

$

(

245‌

)

$

2,474‌

$

(

34,528‌

)

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

2030

Account

December

31,

2022

See

accompanying

notes.

227

INVESTMENT

COMPANIES

-

100.00%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

69.16%

Blue

Chip

Fund

(a),(b)

485,044‌

$

13,707‌

Core

Fixed

Income

Fund

(a)

9,406,659‌

79,204‌

Diversified

International

Fund

(a)

1,745,615‌

19,883‌

International

Small

Company

Fund

(a)

410,120‌

3,716‌

LargeCap

Growth

Fund

I

(a),(b)

1,011,652‌

13,303‌

MidCap

Fund

(a),(b)

74,222‌

2,318‌

MidCap

Value

Fund

I

(a)

606,765‌

9,368‌

Origin

Emerging

Markets

Fund

(a)

531,734‌

4,743‌

Real

Estate

Securities

Fund

(a)

214,142‌

5,401‌

SmallCap

Growth

Fund

I

(a),(b)

233,808‌

2,836‌

SmallCap

Value

Fund

II

(a)

285,742‌

2,986‌

$

157,465‌

Principal

Funds,

Inc.

Institutional

Class

-

30.84%

Equity

Income

Fund

(a)

417,201‌

14,552‌

High

Income

Fund

(a)

1,352,943‌

10,594‌

LargeCap

S&P

500

Index

Fund

(a)

723,750‌

13,939‌

LargeCap

Value

Fund

III

(a)

855,297‌

14,463‌

MidCap

Growth

Fund

III

(a),(b)

636,662‌

6,507‌

Overseas

Fund

(a)

1,097,180‌

10,149‌

$

70,204‌

TOTAL

INVESTMENT

COMPANIES

$

227,669‌

Total

Investments

$

227,669‌

Other

Assets

and

Liabilities

-  0.00%

(5‌)

TOTAL

NET

ASSETS

-

100.00%

$

227,664‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

48.18‌%

Domestic

Equity

Funds

43.65‌%

International

Equity

Funds

8.17‌%

Other

Assets

and

Liabilities

0.00‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

18,828‌

$

4,071‌

$

3,306‌

$

13,707‌

Core

Fixed

Income

Fund

75,243‌

25,388‌

9,148‌

79,204‌

Diversified

International

Fund

30,127‌

5,156‌

9,539‌

19,883‌

Equity

Income

Fund

17,520‌

3,625‌

3,815‌

14,552‌

High

Income

Fund

12,009‌

3,393‌

2,713‌

10,594‌

International

Small

Company

Fund

5,494‌

961‌

1,556‌

3,716‌

LargeCap

Growth

Fund

I

18,132‌

6,171‌

3,255‌

13,303‌

LargeCap

S&P

500

Index

Fund

14,218‌

5,870‌

2,713‌

13,939‌

LargeCap

Value

Fund

III

17,751‌

4,268‌

5,188‌

14,463‌

MidCap

Fund

9,037‌

3,616‌

7,564‌

2,318‌

MidCap

Growth

Fund

III

—‌

6,576‌

227‌

6,507‌

MidCap

Value

Fund

I

9,030‌

3,299‌

1,771‌

9,368‌

Origin

Emerging

Markets

Fund

6,897‌

1,916‌

2,093‌

4,743‌

Overseas

Fund

12,705‌

2,968‌

4,122‌

10,149‌

Real

Estate

Securities

Fund

6,948‌

1,115‌

670‌

5,401‌

SmallCap

Growth

Fund

I

4,201‌

851‌

1,027‌

2,836‌

SmallCap

Value

Fund

II

4,729‌

1,033‌

2,065‌

2,986‌

$

262,869‌

$

80,277‌

$

60,772‌

$

227,669‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

8‌

$

96‌

$

(5,894‌)

Core

Fixed

Income

Fund

2,107‌

(24‌)

—‌

(12,255‌)

Diversified

International

Fund

221‌

(32‌)

—‌

(5,829‌)

Equity

Income

Fund

293‌

13‌

522‌

(2,791‌)

High

Income

Fund

690‌

(103‌)

—‌

(1,992‌)

International

Small

Company

Fund

47‌

(6‌)

—‌

(1,177‌)

LargeCap

Growth

Fund

I

—‌

(25‌)

1,377‌

(7,720‌)

LargeCap

S&P

500

Index

Fund

213‌

(107‌)

191‌

(3,329‌)

LargeCap

Value

Fund

III

240‌

32‌

1,109‌

(2,400‌)

MidCap

Fund

—‌

779‌

72‌

(3,550‌)

MidCap

Growth

Fund

III

—‌

4‌

119‌

154‌

MidCap

Value

Fund

I

138‌

(3‌)

495‌

(1,187‌)

Origin

Emerging

Markets

Fund

140‌

(286‌)

—‌

(1,691‌)

Overseas

Fund

251‌

(5‌)

533‌

(1,397‌)

Real

Estate

Securities

Fund

45‌

(12‌)

147‌

(1,980‌)

SmallCap

Growth

Fund

I

—‌

9‌

23‌

(1,198‌)

SmallCap

Value

Fund

II

84‌

(10‌)

235‌

(701‌)

$

4,469‌

$

232‌

$

4,919‌

$

(54,937‌)

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

2040

Account

December

31,

2022

See

accompanying

notes.

228

INVESTMENT

COMPANIES

-

100.00%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

61.60%

Blue

Chip

Fund

(a),(b)

344,716‌

$

9,742‌

Core

Fixed

Income

Fund

(a)

2,115,307‌

17,811‌

Diversified

International

Fund

(a)

1,239,208‌

14,115‌

International

Small

Company

Fund

(a)

286,707‌

2,597‌

LargeCap

Growth

Fund

I

(a),(b)

719,118‌

9,456‌

MidCap

Fund

(a),(b)

64,805‌

2,024‌

MidCap

Value

Fund

I

(a)

429,265‌

6,628‌

Origin

Emerging

Markets

Fund

(a)

379,635‌

3,386‌

Real

Estate

Securities

Fund

(a)

113,003‌

2,850‌

SmallCap

Growth

Fund

I

(a),(b)

165,419‌

2,006‌

SmallCap

Value

Fund

II

(a)

201,895‌

2,110‌

$

72,725‌

Principal

Funds,

Inc.

Institutional

Class

-

38.40%

Equity

Income

Fund

(a)

295,902‌

10,321‌

High

Income

Fund

(a)

442,725‌

3,467‌

LargeCap

S&P

500

Index

Fund

(a)

513,819‌

9,896‌

LargeCap

Value

Fund

III

(a)

607,288‌

10,269‌

MidCap

Growth

Fund

III

(a),(b)

410,968‌

4,200‌

Overseas

Fund

(a)

776,309‌

7,181‌

$

45,334‌

TOTAL

INVESTMENT

COMPANIES

$

118,059‌

Total

Investments

$

118,059‌

Other

Assets

and

Liabilities

-  0.00%

(4‌)

TOTAL

NET

ASSETS

-

100.00%

$

118,055‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

58.86‌%

Fixed

Income

Funds

29.99‌%

International

Equity

Funds

11.15‌%

Other

Assets

and

Liabilities

0.00‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

12,123‌

$

3,580‌

$

2,126‌

$

9,742‌

Core

Fixed

Income

Fund

15,320‌

6,928‌

1,938‌

17,811‌

Diversified

International

Fund

20,086‌

3,711‌

5,760‌

14,115‌

Equity

Income

Fund

11,451‌

3,047‌

2,339‌

10,321‌

High

Income

Fund

3,188‌

1,348‌

495‌

3,467‌

International

Small

Company

Fund

3,746‌

686‌

1,035‌

2,597‌

LargeCap

Growth

Fund

I

11,740‌

4,965‌

2,094‌

9,456‌

LargeCap

S&P

500

Index

Fund

10,541‌

3,382‌

1,647‌

9,896‌

LargeCap

Value

Fund

III

11,567‌

3,120‌

2,813‌

10,269‌

MidCap

Fund

—‌

1,973‌

38‌

2,024‌

MidCap

Growth

Fund

III

5,719‌

3,221‌

2,971‌

4,200‌

MidCap

Value

Fund

I

6,149‌

2,514‌

1,227‌

6,628‌

Origin

Emerging

Markets

Fund

4,844‌

1,271‌

1,324‌

3,386‌

Overseas

Fund

8,472‌

2,114‌

2,455‌

7,181‌

Real

Estate

Securities

Fund

3,552‌

645‌

337‌

2,850‌

SmallCap

Growth

Fund

I

2,690‌

606‌

521‌

2,006‌

SmallCap

Value

Fund

II

2,988‌

744‌

1,151‌

2,110‌

$

134,176‌

$

43,855‌

$

30,271‌

$

118,059‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(7‌)

$

67‌

$

(3,828‌)

Core

Fixed

Income

Fund

443‌

(3‌)

—‌

(2,496‌)

Diversified

International

Fund

156‌

(1‌)

—‌

(3,921‌)

Equity

Income

Fund

199‌

(6‌)

366‌

(1,832‌)

High

Income

Fund

204‌

—‌

—‌

(574‌)

International

Small

Company

Fund

33‌

5‌

—‌

(805‌)

LargeCap

Growth

Fund

I

—‌

(5‌)

973‌

(5,150‌)

LargeCap

S&P

500

Index

Fund

150‌

(17‌)

135‌

(2,363‌)

LargeCap

Value

Fund

III

170‌

6‌

783‌

(1,611‌)

MidCap

Fund

—‌

—‌

62‌

89‌

MidCap

Growth

Fund

III

—‌

(2‌)

77‌

(1,767‌)

MidCap

Value

Fund

I

97‌

—‌

348‌

(808‌)

Origin

Emerging

Markets

Fund

100‌

9‌

—‌

(1,414‌)

Overseas

Fund

178‌

(4‌)

375‌

(946‌)

Real

Estate

Securities

Fund

23‌

—‌

75‌

(1,010‌)

SmallCap

Growth

Fund

I

—‌

—‌

16‌

(769‌)

SmallCap

Value

Fund

II

59‌

2‌

165‌

(473‌)

$

1,812‌

$

(23‌)

$

3,442‌

$

(29,678‌)

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

2050

Account

December

31,

2022

See

accompanying

notes.

229

INVESTMENT

COMPANIES

-

100.01%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

57.37%

Blue

Chip

Fund

(a),(b)

194,408‌

$

5,494‌

Core

Fixed

Income

Fund

(a)

222,516‌

1,874‌

Diversified

International

Fund

(a)

698,977‌

7,961‌

International

Small

Company

Fund

(a)

160,307‌

1,452‌

LargeCap

Growth

Fund

I

(a),(b)

405,546‌

5,333‌

MidCap

Fund

(a),(b)

36,622‌

1,144‌

MidCap

Value

Fund

I

(a)

242,283‌

3,741‌

Origin

Emerging

Markets

Fund

(a)

215,742‌

1,924‌

Real

Estate

Securities

Fund

(a)

55,143‌

1,391‌

SmallCap

Growth

Fund

I

(a),(b)

92,061‌

1,117‌

SmallCap

Value

Fund

II

(a)

112,329‌

1,174‌

$

32,605‌

Principal

Funds,

Inc.

Institutional

Class

-

42.64%

Equity

Income

Fund

(a)

167,287‌

5,835‌

High

Income

Fund

(a)

77,390‌

606‌

LargeCap

S&P

500

Index

Fund

(a)

289,801‌

5,581‌

LargeCap

Value

Fund

III

(a)

342,333‌

5,789‌

MidCap

Growth

Fund

III

(a),(b)

232,059‌

2,372‌

Overseas

Fund

(a)

437,550‌

4,047‌

$

24,230‌

TOTAL

INVESTMENT

COMPANIES

$

56,835‌

Total

Investments

$

56,835‌

Other

Assets

and

Liabilities

-  (0.01)%

(5‌)

TOTAL

NET

ASSETS

-

100.00%

$

56,830‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

68.57‌%

Fixed

Income

Funds

18.38‌%

International

Equity

Funds

13.06‌%

Other

Assets

and

Liabilities

(0.01‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

7,059‌

$

2,282‌

$

1,611‌

$

5,494‌

Core

Fixed

Income

Fund

1,075‌

1,472‌

446‌

1,874‌

Diversified

International

Fund

11,412‌

2,428‌

3,626‌

7,961‌

Equity

Income

Fund

6,664‌

1,906‌

1,671‌

5,835‌

High

Income

Fund

277‌

510‌

108‌

606‌

International

Small

Company

Fund

2,119‌

453‌

664‌

1,452‌

LargeCap

Growth

Fund

I

6,840‌

3,070‌

1,593‌

5,333‌

LargeCap

S&P

500

Index

Fund

6,537‌

1,738‌

1,288‌

5,581‌

LargeCap

Value

Fund

III

6,720‌

1,878‌

1,892‌

5,789‌

MidCap

Fund

—‌

1,116‌

23‌

1,144‌

MidCap

Growth

Fund

III

3,418‌

1,911‌

1,908‌

2,372‌

MidCap

Value

Fund

I

3,646‌

1,489‌

931‌

3,741‌

Origin

Emerging

Markets

Fund

2,787‌

792‌

836‌

1,924‌

Overseas

Fund

4,760‌

1,336‌

1,517‌

4,047‌

Real

Estate

Securities

Fund

1,815‌

343‌

262‌

1,391‌

SmallCap

Growth

Fund

I

1,572‌

370‌

375‌

1,117‌

SmallCap

Value

Fund

II

1,830‌

449‌

831‌

1,174‌

$

68,531‌

$

23,543‌

$

19,582‌

$

56,835‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(38‌)

$

38‌

$

(2,198‌)

Core

Fixed

Income

Fund

42‌

(5‌)

—‌

(222‌)

Diversified

International

Fund

88‌

(11‌)

—‌

(2,242‌)

Equity

Income

Fund

113‌

(7‌)

207‌

(1,057‌)

High

Income

Fund

30‌

(1‌)

—‌

(72‌)

International

Small

Company

Fund

18‌

3‌

—‌

(459‌)

LargeCap

Growth

Fund

I

—‌

(45‌)

549‌

(2,939‌)

LargeCap

S&P

500

Index

Fund

85‌

(24‌)

76‌

(1,382‌)

LargeCap

Value

Fund

III

96‌

8‌

441‌

(925‌)

MidCap

Fund

—‌

1‌

35‌

50‌

MidCap

Growth

Fund

III

—‌

4‌

43‌

(1,053‌)

MidCap

Value

Fund

I

55‌

3‌

197‌

(466‌)

Origin

Emerging

Markets

Fund

56‌

17‌

—‌

(836‌)

Overseas

Fund

100‌

1‌

212‌

(533‌)

Real

Estate

Securities

Fund

11‌

—‌

38‌

(505‌)

SmallCap

Growth

Fund

I

—‌

14‌

9‌

(464‌)

SmallCap

Value

Fund

II

33‌

3‌

92‌

(277‌)

$

727‌

$

(77‌)

$

1,937‌

$

(15,580‌)

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

2060

Account

December

31,

2022

See

accompanying

notes.

230

INVESTMENT

COMPANIES

-

100.02%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

57.39%

Blue

Chip

Fund

(a),(b)

51,704‌

$

1,461‌

Core

Fixed

Income

Fund

(a)

59,707‌

503‌

Diversified

International

Fund

(a)

185,941‌

2,118‌

International

Small

Company

Fund

(a)

42,777‌

388‌

LargeCap

Growth

Fund

I

(a),(b)

107,914‌

1,419‌

MidCap

Fund

(a),(b)

9,741‌

304‌

MidCap

Value

Fund

I

(a)

64,491‌

996‌

Origin

Emerging

Markets

Fund

(a)

57,573‌

513‌

Real

Estate

Securities

Fund

(a)

14,590‌

368‌

SmallCap

Growth

Fund

I

(a),(b)

24,680‌

299‌

SmallCap

Value

Fund

II

(a)

30,067‌

314‌

$

8,683‌

Principal

Funds,

Inc.

Institutional

Class

-

42.63%

Equity

Income

Fund

(a)

44,603‌

1,556‌

High

Income

Fund

(a)

20,762‌

163‌

LargeCap

S&P

500

Index

Fund

(a)

77,075‌

1,484‌

LargeCap

Value

Fund

III

(a)

91,017‌

1,539‌

MidCap

Growth

Fund

III

(a),(b)

61,843‌

632‌

Overseas

Fund

(a)

116,439‌

1,077‌

$

6,451‌

TOTAL

INVESTMENT

COMPANIES

$

15,134‌

Total

Investments

$

15,134‌

Other

Assets

and

Liabilities

-  (0.02)%

(3‌)

TOTAL

NET

ASSETS

-

100.00%

$

15,131‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

68.55‌%

Fixed

Income

Funds

18.40‌%

International

Equity

Funds

13.07‌%

Other

Assets

and

Liabilities

(0.02‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

1,767‌

$

739‌

$

476‌

$

1,461‌

Core

Fixed

Income

Fund

282‌

395‌

115‌

503‌

Diversified

International

Fund

2,858‌

850‌

1,020‌

2,118‌

Equity

Income

Fund

1,667‌

650‌

484‌

1,556‌

High

Income

Fund

98‌

133‌

45‌

163‌

International

Small

Company

Fund

535‌

159‌

189‌

388‌

LargeCap

Growth

Fund

I

1,712‌

947‌

473‌

1,419‌

LargeCap

S&P

500

Index

Fund

1,697‌

541‌

386‌

1,484‌

LargeCap

Value

Fund

III

1,685‌

644‌

548‌

1,539‌

MidCap

Fund

—‌

303‌

12‌

304‌

MidCap

Growth

Fund

III

841‌

591‌

538‌

632‌

MidCap

Value

Fund

I

907‌

494‌

283‌

996‌

Origin

Emerging

Markets

Fund

690‌

270‌

240‌

513‌

Overseas

Fund

1,245‌

441‌

461‌

1,077‌

Real

Estate

Securities

Fund

457‌

127‌

85‌

368‌

SmallCap

Growth

Fund

I

389‌

136‌

112‌

299‌

SmallCap

Value

Fund

II

454‌

157‌

225‌

314‌

$

17,284‌

$

7,577‌

$

5,692‌

$

15,134‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(1‌)

$

10‌

$

(568‌)

Core

Fixed

Income

Fund

11‌

(1‌)

—‌

(58‌)

Diversified

International

Fund

23‌

—‌

—‌

(570‌)

Equity

Income

Fund

29‌

—‌

56‌

(277‌)

High

Income

Fund

9‌

—‌

—‌

(23‌)

International

Small

Company

Fund

5‌

—‌

—‌

(117‌)

LargeCap

Growth

Fund

I

—‌

(2‌)

146‌

(765‌)

LargeCap

S&P

500

Index

Fund

22‌

(1‌)

20‌

(367‌)

LargeCap

Value

Fund

III

25‌

—‌

117‌

(242‌)

MidCap

Fund

—‌

—‌

9‌

13‌

MidCap

Growth

Fund

III

—‌

(2‌)

12‌

(260‌)

MidCap

Value

Fund

I

15‌

—‌

52‌

(122‌)

Origin

Emerging

Markets

Fund

15‌

—‌

—‌

(207‌)

Overseas

Fund

27‌

(1‌)

56‌

(147‌)

Real

Estate

Securities

Fund

3‌

—‌

10‌

(131‌)

SmallCap

Growth

Fund

I

—‌

—‌

2‌

(114‌)

SmallCap

Value

Fund

II

9‌

—‌

25‌

(72‌)

$

193‌

$

(8‌)

$

515‌

$

(4,027‌)

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

Strategic

Income

Account

December

31,

2022

See

accompanying

notes.

231

INVESTMENT

COMPANIES

-

100

.02

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

R-6

-

55

.23

%

Blue

Chip

Fund

(a),(b)

27,501‌

$

777‌

Core

Fixed

Income

Fund

(a)

1,016,123‌

8,556‌

Diversified

International

Fund

(a)

98,031‌

1,117‌

Diversified

Real

Asset

Fund

(a)

56,730‌

623‌

International

Small

Company

Fund

(a)

23,879‌

216‌

LargeCap

Growth

Fund

I

(a),(b)

57,270‌

753‌

MidCap

Fund

(a),(b)

4,365‌

136‌

MidCap

Value

Fund

I

(a)

35,319‌

545‌

Origin

Emerging

Markets

Fund

(a)

30,994‌

277‌

SmallCap

Growth

Fund

I

(a),(b)

13,165‌

160‌

SmallCap

Value

Fund

II

(a)

16,137‌

169‌

$

13,329‌

Principal

Funds,

Inc.

Institutional

Class

-

44

.79

%

Equity

Income

Fund

(a)

23,839‌

831‌

High

Income

Fund

(a)

202,908‌

1,589‌

Inflation

Protection

Fund

(a)

205,861‌

1,579‌

LargeCap

S&P

500

Index

Fund

(a)

41,065‌

791‌

LargeCap

Value

Fund

III

(a)

48,596‌

822‌

MidCap

Growth

Fund

III

(a),(b)

36,746‌

375‌

Overseas

Fund

(a)

63,188‌

584‌

Short-Term

Income

Fund

(a)

367,768‌

4,237‌

$

10,808‌

TOTAL

INVESTMENT

COMPANIES

$

24,137‌

Total

Investments

$

24,137‌

Other

Assets

and

Liabilities

-  (0.02)%

(

4‌

)

TOTAL

NET

ASSETS

-

100.00%

$

24,133‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

70

.77‌

%

Domestic

Equity

Funds

22

.20‌

%

International

Equity

Funds

4

.47‌

%

Specialty

Funds

2

.58‌

%

Other

Assets

and

Liabilities

(

0

.02‌

)

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Principal

LifeTime

Strategic

Income

Account

December

31,

2022

See

accompanying

notes.

232

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

1,174‌

$

345‌

$

375‌

$

777‌

Core

Fixed

Income

Fund

9,487‌

3,405‌

2,841‌

8,556‌

Diversified

International

Fund

1,957‌

427‌

922‌

1,117‌

Diversified

Real

Asset

Fund

719‌

209‌

185‌

623‌

Equity

Income

Fund

1,128‌

274‌

398‌

831‌

High

Income

Fund

2,146‌

611‌

811‌

1,589‌

Inflation

Protection

Fund

1,850‌

683‌

623‌

1,579‌

International

Small

Company

Fund

375‌

81‌

166‌

216‌

LargeCap

Growth

Fund

I

1,144‌

458‌

371‌

753‌

LargeCap

S&P

500

Index

Fund

844‌

480‌

324‌

791‌

LargeCap

Value

Fund

III

1,134‌

310‌

480‌

822‌

MidCap

Fund

626‌

230‌

538‌

136‌

MidCap

Growth

Fund

III

—‌

399‌

35‌

375‌

MidCap

Value

Fund

I

630‌

228‌

239‌

545‌

Origin

Emerging

Markets

Fund

502‌

124‌

219‌

277‌

Overseas

Fund

833‌

231‌

402‌

584‌

Short-Term

Income

Fund

5,043‌

1,436‌

1,979‌

4,237‌

SmallCap

Growth

Fund

I

254‌

64‌

85‌

160‌

SmallCap

Value

Fund

II

287‌

72‌

148‌

169‌

$

30,133‌

$

10,067‌

$

11,141‌

$

24,137‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(

15‌

)

$

6‌

$

(

352‌

)

Core

Fixed

Income

Fund

253‌

(

42‌

)

—‌

(

1,453‌

)

Diversified

International

Fund

12‌

(

8‌

)

—‌

(

337‌

)

Diversified

Real

Asset

Fund

40‌

(

1‌

)

36‌

(

119‌

)

Equity

Income

Fund

18‌

(

19‌

)

30‌

(

154‌

)

High

Income

Fund

113‌

(

40‌

)

—‌

(

317‌

)

Inflation

Protection

Fund

95‌

(

8‌

)

—‌

(

323‌

)

International

Small

Company

Fund

3‌

—‌

—‌

(

74‌

)

LargeCap

Growth

Fund

I

—‌

(

11‌

)

79‌

(

467‌

)

LargeCap

S&P

500

Index

Fund

12‌

(

15‌

)

11‌

(

194‌

)

LargeCap

Value

Fund

III

14‌

—‌

63‌

(

142‌

)

MidCap

Fund

—‌

58‌

4‌

(

240‌

)

MidCap

Growth

Fund

III

—‌

2‌

7‌

9‌

MidCap

Value

Fund

I

8‌

—‌

29‌

(

74‌

)

Origin

Emerging

Markets

Fund

8‌

(

20‌

)

—‌

(

110‌

)

Overseas

Fund

15‌

8‌

31‌

(

86‌

)

Short-Term

Income

Fund

77‌

(

28‌

)

—‌

(

235‌

)

SmallCap

Growth

Fund

I

—‌

2‌

1‌

(

75‌

)

SmallCap

Value

Fund

II

5‌

3‌

13‌

(

45‌

)

$

673‌

$

(

134‌

)

$

310‌

$

(

4,788‌

)

Amounts

in

thousands.

Schedule

of

Investments

Real

Estate

Securities

Account

December

31,

2022

See

accompanying

notes.

233

INVESTMENT

COMPANIES

-

0.99%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.99%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

1,324,713‌

$

1,325‌

TOTAL

INVESTMENT

COMPANIES

$

1,325‌

COMMON

STOCKS

-

98.46%

Shares

Held

Value

(000's)

Entertainment

-

1.16%

Marriott

Vacations

Worldwide

Corp

11,595‌

$

1,561‌

REITs

-

97.30%

Agree

Realty

Corp

26,532‌

1,882‌

Alexandria

Real

Estate

Equities

Inc

36,269‌

5,283‌

American

Homes

4

Rent

148,354‌

4,471‌

American

Tower

Corp

26,682‌

5,653‌

Apartment

Income

REIT

Corp

70,046‌

2,403‌

Apple

Hospitality

REIT

Inc

77,418‌

1,222‌

AvalonBay

Communities

Inc

39,854‌

6,437‌

Broadstone

Net

Lease

Inc

109,603‌

1,777‌

Cousins

Properties

Inc

73,974‌

1,871‌

CubeSmart

96,875‌

3,899‌

DiamondRock

Hospitality

Co

99,385‌

814‌

Digital

Realty

Trust

Inc

46,606‌

4,673‌

Equinix

Inc

8,552‌

5,602‌

Equity

LifeStyle

Properties

Inc

64,513‌

4,168‌

Equity

Residential

19,015‌

1,122‌

Essex

Property

Trust

Inc

23,919‌

5,069‌

Extra

Space

Storage

Inc

35,205‌

5,181‌

First

Industrial

Realty

Trust

Inc

69,139‌

3,337‌

Gaming

and

Leisure

Properties

Inc

41,087‌

2,140‌

Healthcare

Realty

Trust

Inc

81,845‌

1,577‌

InvenTrust

Properties

Corp

28,000‌

663‌

Invitation

Homes

Inc

158,870‌

4,709‌

Kilroy

Realty

Corp

53,267‌

2,060‌

Medical

Properties

Trust

Inc

144,057‌

1,605‌

NETSTREIT

Corp

47,420‌

869‌

Prologis

Inc

84,852‌

9,565‌

Public

Storage

10,590‌

2,967‌

Regency

Centers

Corp

60,266‌

3,767‌

Rexford

Industrial

Realty

Inc

87,133‌

4,761‌

Sabra

Health

Care

REIT

Inc

131,359‌

1,633‌

Saul

Centers

Inc

15,727‌

640‌

Simon

Property

Group

Inc

15,756‌

1,851‌

Sun

Communities

Inc

39,066‌

5,586‌

Terreno

Realty

Corp

48,528‌

2,760‌

Ventas

Inc

142,897‌

6,437‌

VICI

Properties

Inc

208,286‌

6,748‌

Welltower

Inc

83,947‌

5,503‌

$

130,705‌

TOTAL

COMMON

STOCKS

$

132,266‌

Total

Investments

$

133,591‌

Other

Assets

and

Liabilities

-  0.55%

736‌

TOTAL

NET

ASSETS

-

100.00%

$

134,327‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary  (unaudited)

Sector

Percent

Financial

97.30‌%

Consumer,

Cyclical

1.16‌%

Money

Market

Funds

0.99‌%

Other

Assets

and

Liabilities

0.55‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

1,475‌

$

150‌

$

1,325‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

2,129‌

24,741‌

26,870‌

—‌

$

2,129‌

$

26,216‌

$

27,020‌

$

1,325‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

2‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

22‌

—‌

—‌

—‌

$

24‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

Schedule

of

Investments

SAM

Balanced

Portfolio

December

31,

2022

See

accompanying

notes.

234

INVESTMENT

COMPANIES

-

99.99%

Shares

Held

Value

(000's)

Money

Market

Funds

-

1.00%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

5,698,886‌

$

5,699‌

Principal

Exchange-Traded

Funds

-

7.33%

Principal

U.S.

Mega-Cap

ETF

(a)

950,807‌

34,286‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

(a)

188,600‌

7,373‌

$

41,659‌

Principal

Funds,

Inc.

Class

R-6

-

46.27%

Blue

Chip

Fund

(a),(c)

2,292,014‌

64,772‌

Core

Fixed

Income

Fund

(a)

7,395,516‌

62,270‌

Diversified

International

Fund

(a)

2,447,539‌

27,877‌

Diversified

Real

Asset

Fund

(a)

2,353,861‌

25,869‌

Global

Real

Estate

Securities

Fund

(a)

309,388‌

2,661‌

High

Yield

Fund

(a)

2,449,355‌

15,431‌

International

Small

Company

Fund

(a)

675,014‌

6,116‌

LargeCap

Growth

Fund

I

(a),(c)

715,197‌

9,405‌

Origin

Emerging

Markets

Fund

(a)

2,325,109‌

20,740‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a)

3,175,881‌

27,757‌

$

262,898‌

Principal

Funds,

Inc.

Institutional

Class

-

28.02%

Bond

Market

Index

Fund

(a)

5,959,456‌

49,940‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a)

889,245‌

7,568‌

Inflation

Protection

Fund

(a)

1,544,734‌

11,848‌

LargeCap

Value

Fund

III

(a)

1,033,890‌

17,483‌

Overseas

Fund

(a)

1,055,701‌

9,765‌

Principal

Capital

Appreciation

Fund

(a)

815,843‌

45,157‌

Short-Term

Income

Fund

(a)

1,513,690‌

17,438‌

$

159,199‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

17.37%

Equity

Income

Account

(a)

2,256,755‌

59,894‌

Government

&

High

Quality

Bond

Account

(a)

1,743,794‌

14,369‌

MidCap

Account

(a)

477,042‌

24,449‌

$

98,712‌

TOTAL

INVESTMENT

COMPANIES

$

568,167‌

Total

Investments

$

568,167‌

Other

Assets

and

Liabilities

-  0.01%

33‌

TOTAL

NET

ASSETS

-

100.00%

$

568,200‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

46.25‌%

Fixed

Income

Funds

41.27‌%

International

Equity

Funds

6.92‌%

Specialty

Funds

4.55‌%

Money

Market

Funds

1.00‌%

Other

Assets

and

Liabilities

0.01‌%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

SAM

Balanced

Portfolio

December

31,

2022

See

accompanying

notes.

235

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

76,921‌

$

20,134‌

$

6,540‌

$

64,772‌

Bond

Market

Index

Fund

—‌

53,071‌

702‌

49,940‌

Core

Fixed

Income

Fund

82,384‌

14,282‌

21,404‌

62,270‌

Diversified

International

Fund

19,142‌

15,750‌

1,846‌

27,877‌

Diversified

Real

Asset

Fund

37,643‌

3,842‌

10,768‌

25,869‌

Edge

MidCap

Fund

17,925‌

80‌

15,373‌

—‌

Equity

Income

Account

62,100‌

18,432‌

6,869‌

59,894‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

23,011‌

1,003‌

13,650‌

7,568‌

Global

Real

Estate

Securities

Fund

17,302‌

80‌

12,848‌

2,661‌

Government

&

High

Quality

Bond

Account

26,575‌

15,701‌

24,276‌

14,369‌

High

Yield

Fund

16,203‌

7,045‌

5,023‌

15,431‌

Inflation

Protection

Fund

—‌

13,414‌

208‌

11,848‌

International

Small

Company

Fund

9,488‌

3,817‌

4,306‌

6,116‌

LargeCap

Growth

Fund

I

31,328‌

2,947‌

14,690‌

9,405‌

LargeCap

Value

Fund

III

37,659‌

1,778‌

18,652‌

17,483‌

MidCap

Account

7,624‌

24,126‌

1,535‌

24,449‌

Origin

Emerging

Markets

Fund

48,422‌

1,559‌

19,505‌

20,740‌

Overseas

Fund

7,286‌

8,485‌

4,282‌

9,765‌

Principal

Capital

Appreciation

Fund

13,047‌

43,312‌

4,509‌

45,157‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

5,699‌

—‌

5,699‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

22,974‌

26,882‌

49,856‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

10,054‌

—‌

8,817‌

—‌

Principal

U.S.

Mega-Cap

ETF

66,858‌

—‌

22,766‌

34,286‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

52,810‌

—‌

40,486‌

7,373‌

Short-Term

Income

Fund

25,640‌

447‌

7,464‌

17,438‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

32,072‌

4,752‌

4,132‌

27,757‌

$

744,468‌

$

286,638‌

$

320,507‌

$

568,167‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

1,687‌

$

453‌

$

(27,430‌)

Bond

Market

Index

Fund

818‌

(39‌)

—‌

(2,390‌)

Core

Fixed

Income

Fund

2,071‌

(2,299‌)

—‌

(10,693‌)

Diversified

International

Fund

310‌

(443‌)

—‌

(4,726‌)

Diversified

Real

Asset

Fund

1,644‌

132‌

1,498‌

(4,980‌)

Edge

MidCap

Fund

—‌

1,884‌

—‌

(4,516‌)

Equity

Income

Account

2,560‌

3,117‌

5,153‌

(16,886‌)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

907‌

(1,981‌)

—‌

(815‌)

Global

Real

Estate

Securities

Fund

(5‌)

3,062‌

36‌

(4,935‌)

Government

&

High

Quality

Bond

Account

264‌

(2,500‌)

—‌

(1,131‌)

High

Yield

Fund

1,026‌

(548‌)

—‌

(2,246‌)

Inflation

Protection

Fund

711‌

(15‌)

—‌

(1,343‌)

International

Small

Company

Fund

78‌

(1,176‌)

—‌

(1,707‌)

LargeCap

Growth

Fund

I

—‌

(4,101‌)

978‌

(6,079‌)

LargeCap

Value

Fund

III

292‌

(807‌)

1,349‌

(2,495‌)

MidCap

Account

57‌

(485‌)

1,943‌

(5,281‌)

Origin

Emerging

Markets

Fund

612‌

(2,471‌)

—‌

(7,265‌)

Overseas

Fund

242‌

(663‌)

516‌

(1,061‌)

Principal

Capital

Appreciation

Fund

446‌

(1,233‌)

—‌

(5,460‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

11‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

86‌

—‌

—‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

137‌

(1,220‌)

—‌

(17‌)

Principal

U.S.

Mega-Cap

ETF

719‌

8,504‌

—‌

(18,310‌)

Principal

U.S.

Small-Cap

Multi-Factor

ETF

219‌

12,059‌

—‌

(17,010‌)

Short-Term

Income

Fund

347‌

(182‌)

—‌

(1,003‌)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

1,520‌

(412‌)

—‌

(4,523‌)

$

15,072‌

$

9,870‌

$

11,926‌

$

(152,302‌)

Amounts

in

thousands.

(a)

The

negative

income

is

a

result

of

updated

information

received,

related

to

estimated

distributions

from

Real

Estate

Investment

Trusts

(“REITs”),

reported

in

the

prior

year

.

Schedule

of

Investments

SAM

Conservative

Balanced

Portfolio

December

31,

2022

See

accompanying

notes.

236

INVESTMENT

COMPANIES

-

100.01%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.90%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

1,464,725‌

$

1,465‌

Principal

Exchange-Traded

Funds

-

4.58%

Principal

U.S.

Mega-Cap

ETF

(a)

169,230‌

6,103‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

(a)

35,200‌

1,376‌

$

7,479‌

Principal

Funds,

Inc.

Class

R-6

-

46.18%

Blue

Chip

Fund

(a),(c)

474,081‌

13,398‌

Core

Fixed

Income

Fund

(a)

3,784,251‌

31,863‌

Diversified

International

Fund

(a)

428,036‌

4,875‌

Diversified

Real

Asset

Fund

(a)

414,006‌

4,550‌

Global

Real

Estate

Securities

Fund

(a)

102,739‌

884‌

High

Yield

Fund

(a)

761,160‌

4,795‌

International

Small

Company

Fund

(a)

113,402‌

1,027‌

Origin

Emerging

Markets

Fund

(a)

413,025‌

3,684‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a)

1,182,918‌

10,339‌

$

75,415‌

Principal

Funds,

Inc.

Institutional

Class

-

31.57%

Bond

Market

Index

Fund

(a)

2,917,394‌

24,448‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a)

470,516‌

4,004‌

Inflation

Protection

Fund

(a)

722,450‌

5,541‌

Overseas

Fund

(a)

126,337‌

1,169‌

Principal

Capital

Appreciation

Fund

(a)

158,560‌

8,776‌

Short-Term

Income

Fund

(a)

660,467‌

7,608‌

$

51,546‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

16.78%

Equity

Income

Account

(a)

570,754‌

15,148‌

Government

&

High

Quality

Bond

Account

(a)

953,105‌

7,854‌

MidCap

Account

(a)

85,826‌

4,398‌

$

27,400‌

TOTAL

INVESTMENT

COMPANIES

$

163,305‌

Total

Investments

$

163,305‌

Other

Assets

and

Liabilities

-  (0.01)%

(10‌)

TOTAL

NET

ASSETS

-

100.00%

$

163,295‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

62.04‌%

Domestic

Equity

Funds

30.13‌%

International

Equity

Funds

4.15‌%

Specialty

Funds

2.79‌%

Money

Market

Funds

0.90‌%

Other

Assets

and

Liabilities

(0.01‌)%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

SAM

Conservative

Balanced

Portfolio

December

31,

2022

See

accompanying

notes.

237

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

14,840‌

$

5,367‌

$

1,774‌

$

13,398‌

Bond

Market

Index

Fund

—‌

26,268‌

544‌

24,448‌

Core

Fixed

Income

Fund

37,543‌

6,009‌

5,620‌

31,863‌

Diversified

International

Fund

2,019‌

4,137‌

477‌

4,875‌

Diversified

Real

Asset

Fund

9,800‌

762‌

5,123‌

4,550‌

Edge

MidCap

Fund

3,423‌

138‌

3,067‌

—‌

Equity

Income

Account

11,346‌

8,164‌

1,262‌

15,148‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

11,778‌

656‌

7,159‌

4,004‌

Global

Real

Estate

Securities

Fund

6,822‌

74‌

5,262‌

884‌

Government

&

High

Quality

Bond

Account

12,152‌

7,516‌

10,139‌

7,854‌

High

Yield

Fund

7,943‌

3,494‌

5,391‌

4,795‌

Inflation

Protection

Fund

—‌

6,588‌

340‌

5,541‌

International

Small

Company

Fund

2,398‌

280‌

1,109‌

1,027‌

LargeCap

Growth

Fund

I

6,046‌

655‌

5,164‌

—‌

LargeCap

Value

Fund

III

5,183‌

2,180‌

7,066‌

—‌

MidCap

Account

2,215‌

3,378‌

188‌

4,398‌

Origin

Emerging

Markets

Fund

8,855‌

263‌

3,656‌

3,684‌

Overseas

Fund

1,520‌

1,649‌

1,693‌

1,169‌

Principal

Capital

Appreciation

Fund

2,022‌

10,547‌

2,142‌

8,776‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

1,465‌

—‌

1,465‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

4,910‌

13,661‌

18,571‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

4,686‌

436‌

4,570‌

—‌

Principal

U.S.

Mega-Cap

ETF

12,575‌

—‌

4,707‌

6,103‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

7,265‌

—‌

5,199‌

1,376‌

Short-Term

Income

Fund

12,127‌

387‌

4,354‌

7,608‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

16,125‌

935‌

4,574‌

10,339‌

$

203,593‌

$

105,009‌

$

109,151‌

$

163,305‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

419‌

$

94‌

$

(5,454‌)

Bond

Market

Index

Fund

401‌

(26‌)

—‌

(1,250‌)

Core

Fixed

Income

Fund

984‌

(685‌)

—‌

(5,384‌)

Diversified

International

Fund

54‌

(110‌)

—‌

(694‌)

Diversified

Real

Asset

Fund

312‌

97‌

263‌

(986‌)

Edge

MidCap

Fund

—‌

356‌

—‌

(850‌)

Equity

Income

Account

647‌

61‌

1,302‌

(3,161‌)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

433‌

(836‌)

—‌

(435‌)

Global

Real

Estate

Securities

Fund

(4‌)

1,013‌

14‌

(1,763‌)

Government

&

High

Quality

Bond

Account

135‌

(1,125‌)

—‌

(550‌)

High

Yield

Fund

433‌

(497‌)

—‌

(754‌)

Inflation

Protection

Fund

332‌

(22‌)

—‌

(685‌)

International

Small

Company

Fund

13‌

(235‌)

—‌

(307‌)

LargeCap

Growth

Fund

I

—‌

(1,268‌)

—‌

(269‌)

LargeCap

Value

Fund

III

—‌

(217‌)

—‌

(80‌)

MidCap

Account

10‌

(65‌)

339‌

(942‌)

Origin

Emerging

Markets

Fund

109‌

(482‌)

—‌

(1,296‌)

Overseas

Fund

29‌

(221‌)

62‌

(86‌)

Principal

Capital

Appreciation

Fund

87‌

(476‌)

—‌

(1,175‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

3‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

28‌

—‌

—‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

63‌

(543‌)

—‌

(9‌)

Principal

U.S.

Mega-Cap

ETF

130‌

1,769‌

—‌

(3,534‌)

Principal

U.S.

Small-Cap

Multi-Factor

ETF

38‌

1,878‌

—‌

(2,568‌)

Short-Term

Income

Fund

159‌

(103‌)

—‌

(449‌)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

639‌

(366‌)

—‌

(1,781‌)

$

5,035‌

$

(1,684‌)

$

2,074‌

$

(34,462‌)

Amounts

in

thousands.

(a)

The

negative

income

is

a

result

of

updated

information

received,

related

to

estimated

distributions

from

Real

Estate

Investment

Trusts

(“REITs”),

reported

in

the

prior

year.

Schedule

of

Investments

SAM

Conservative

Growth

Portfolio

December

31,

2022

See

accompanying

notes.

238

INVESTMENT

COMPANIES

-

99.99%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.80%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

2,766,147‌

$

2,766‌

Principal

Exchange-Traded

Funds

-

10.11%

Principal

U.S.

Mega-Cap

ETF

(a)

776,311‌

27,994‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

(a)

178,400‌

6,974‌

$

34,968‌

Principal

Funds,

Inc.

Class

R-6

-

44.23%

Blue

Chip

Fund

(a),(c)

1,848,993‌

52,252‌

Core

Fixed

Income

Fund

(a)

2,033,400‌

17,121‌

Diversified

International

Fund

(a)

2,094,041‌

23,851‌

Diversified

Real

Asset

Fund

(a)

1,511,617‌

16,613‌

Global

Real

Estate

Securities

Fund

(a)

185,455‌

1,595‌

High

Yield

Fund

(a)

625,661‌

3,942‌

International

Small

Company

Fund

(a)

550,758‌

4,990‌

LargeCap

Growth

Fund

I

(a),(c)

651,097‌

8,562‌

Origin

Emerging

Markets

Fund

(a)

1,898,512‌

16,935‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a)

806,168‌

7,046‌

$

152,907‌

Principal

Funds,

Inc.

Institutional

Class

-

23.56%

Bond

Market

Index

Fund

(a)

1,531,405‌

12,833‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a)

334,761‌

2,849‌

Inflation

Protection

Fund

(a)

308,156‌

2,364‌

LargeCap

Value

Fund

III

(a)

869,291‌

14,700‌

Overseas

Fund

(a)

724,159‌

6,698‌

Principal

Capital

Appreciation

Fund

(a)

687,622‌

38,060‌

Short-Term

Income

Fund

(a)

343,562‌

3,958‌

$

81,462‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

21.29%

Equity

Income

Account

(a)

1,823,770‌

48,403‌

Government

&

High

Quality

Bond

Account

(a)

429,550‌

3,539‌

MidCap

Account

(a)

422,628‌

21,660‌

$

73,602‌

TOTAL

INVESTMENT

COMPANIES

$

345,705‌

Total

Investments

$

345,705‌

Other

Assets

and

Liabilities

-  0.01%

40‌

TOTAL

NET

ASSETS

-

100.00%

$

345,745‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

63.23‌%

Fixed

Income

Funds

22.41‌%

International

Equity

Funds

8.74‌%

Specialty

Funds

4.81‌%

Money

Market

Funds

0.80‌%

Other

Assets

and

Liabilities

0.01‌%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

SAM

Conservative

Growth

Portfolio

December

31,

2022

See

accompanying

notes.

239

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

59,716‌

$

18,342‌

$

5,632‌

$

52,252‌

Bond

Market

Index

Fund

—‌

13,464‌

70‌

12,833‌

Core

Fixed

Income

Fund

17,280‌

4,497‌

1,608‌

17,121‌

Diversified

International

Fund

15,266‌

13,692‌

1,347‌

23,851‌

Diversified

Real

Asset

Fund

20,753‌

4,078‌

5,167‌

16,613‌

Edge

MidCap

Fund

14,981‌

319‌

13,037‌

—‌

Equity

Income

Account

48,104‌

18,022‌

7,283‌

48,403‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

4,093‌

1,690‌

2,211‌

2,849‌

Global

Real

Estate

Securities

Fund

8,020‌

1,051‌

6,746‌

1,595‌

Government

&

High

Quality

Bond

Account

5,358‌

4,447‌

5,468‌

3,539‌

High

Yield

Fund

2,154‌

2,601‌

332‌

3,942‌

Inflation

Protection

Fund

—‌

2,813‌

218‌

2,364‌

International

Small

Company

Fund

7,388‌

2,824‌

3,002‌

4,990‌

LargeCap

Growth

Fund

I

25,761‌

3,115‌

11,641‌

8,562‌

LargeCap

Value

Fund

III

28,523‌

2,922‌

14,017‌

14,700‌

MidCap

Account

7,256‌

20,153‌

689‌

21,660‌

Origin

Emerging

Markets

Fund

36,702‌

2,606‌

14,877‌

16,935‌

Overseas

Fund

6,284‌

2,853‌

1,474‌

6,698‌

Principal

Capital

Appreciation

Fund

7,922‌

38,371‌

2,622‌

38,060‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

2,766‌

—‌

2,766‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

14,113‌

9,174‌

23,287‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

1,868‌

284‌

1,804‌

—‌

Principal

U.S.

Mega-Cap

ETF

52,006‌

—‌

16,117‌

27,994‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

41,514‌

—‌

30,174‌

6,974‌

Short-Term

Income

Fund

4,307‌

1,340‌

1,405‌

3,958‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

5,088‌

3,387‌

311‌

7,046‌

$

434,457‌

$

174,811‌

$

170,539‌

$

345,705‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

492‌

$

364‌

$

(20,666‌)

Bond

Market

Index

Fund

210‌

(4‌)

—‌

(557‌)

Core

Fixed

Income

Fund

499‌

(183‌)

—‌

(2,865‌)

Diversified

International

Fund

265‌

(338‌)

—‌

(3,422‌)

Diversified

Real

Asset

Fund

1,027‌

69‌

960‌

(3,120‌)

Edge

MidCap

Fund

—‌

1,131‌

—‌

(3,394‌)

Equity

Income

Account

2,011‌

1,496‌

4,049‌

(11,936‌)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

265‌

(303‌)

—‌

(420‌)

Global

Real

Estate

Securities

Fund

3‌

1,693‌

16‌

(2,423‌)

Government

&

High

Quality

Bond

Account

54‌

(475‌)

—‌

(323‌)

High

Yield

Fund

195‌

(34‌)

—‌

(447‌)

Inflation

Protection

Fund

143‌

(9‌)

—‌

(222‌)

International

Small

Company

Fund

64‌

(829‌)

—‌

(1,391‌)

LargeCap

Growth

Fund

I

—‌

(3,383‌)

886‌

(5,290‌)

LargeCap

Value

Fund

III

244‌

(696‌)

1,129‌

(2,032‌)

MidCap

Account

50‌

(200‌)

1,699‌

(4,860‌)

Origin

Emerging

Markets

Fund

499‌

(1,977‌)

—‌

(5,519‌)

Overseas

Fund

166‌

(212‌)

354‌

(753‌)

Principal

Capital

Appreciation

Fund

375‌

(719‌)

—‌

(4,892‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

6‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

51‌

—‌

—‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

39‌

(346‌)

—‌

(2‌)

Principal

U.S.

Mega-Cap

ETF

572‌

5,768‌

—‌

(13,663‌)

Principal

U.S.

Small-Cap

Multi-Factor

ETF

206‌

7,289‌

—‌

(11,655‌)

Short-Term

Income

Fund

83‌

(66‌)

—‌

(218‌)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

362‌

(45‌)

—‌

(1,073‌)

$

7,389‌

$

8,119‌

$

9,457‌

$

(101,143‌)

Amounts

in

thousands.

Schedule

of

Investments

SAM

Flexible

Income

Portfolio

December

31,

2022

See

accompanying

notes.

240

INVESTMENT

COMPANIES

-

100.00%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.89%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

1,277,447‌

$

1,277‌

Principal

Exchange-Traded

Funds

-

4.74%

Principal

Active

High

Yield

ETF

(a)

171,116‌

3,054‌

Principal

U.S.

Mega-Cap

ETF

(a)

103,407‌

3,729‌

$

6,783‌

Principal

Funds,

Inc.

Class

R-6

-

43.88%

Blue

Chip

Fund

(a),(c)

198,442‌

5,608‌

Core

Fixed

Income

Fund

(a)

4,476,948‌

37,696‌

Diversified

International

Fund

(a)

276,363‌

3,148‌

Global

Real

Estate

Securities

Fund

(a)

100,913‌

868‌

High

Yield

Fund

(a)

315,711‌

1,989‌

Origin

Emerging

Markets

Fund

(a)

118,162‌

1,054‌

Small-

MidCap

Dividend

Income

Fund

(a)

109,091‌

1,656‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a)

1,229,420‌

10,745‌

$

62,764‌

Principal

Funds,

Inc.

Institutional

Class

-

37.56%

Bond

Market

Index

Fund

(a)

3,554,293‌

29,785‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a)

346,185‌

2,946‌

Inflation

Protection

Fund

(a)

924,675‌

7,092‌

Principal

Capital

Appreciation

Fund

(a)

95,607‌

5,292‌

Short-Term

Income

Fund

(a)

746,451‌

8,599‌

$

53,714‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

12.93%

Equity

Income

Account

(a)

345,894‌

9,180‌

Government

&

High

Quality

Bond

Account

(a)

1,129,330‌

9,306‌

$

18,486‌

TOTAL

INVESTMENT

COMPANIES

$

143,024‌

Total

Investments

$

143,024‌

Other

Assets

and

Liabilities

-  0.00%

(1‌)

TOTAL

NET

ASSETS

-

100.00%

$

143,023‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Fixed

Income

Funds

79.95‌%

Domestic

Equity

Funds

17.81‌%

International

Equity

Funds

1.35‌%

Money

Market

Funds

0.89‌%

Other

Assets

and

Liabilities

0.00‌%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

SAM

Flexible

Income

Portfolio

December

31,

2022

See

accompanying

notes.

241

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

9,924‌

$

1,339‌

$

2,756‌

$

5,608‌

Bond

Market

Index

Fund

—‌

32,482‌

1,153‌

29,785‌

Core

Fixed

Income

Fund

34,551‌

15,912‌

7,017‌

37,696‌

Diversified

International

Fund

4,873‌

1,897‌

2,386‌

3,148‌

Diversified

Real

Asset

Fund

12,601‌

270‌

12,730‌

—‌

Equity

Income

Account

5,414‌

7,135‌

1,531‌

9,180‌

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

5,895‌

785‌

2,868‌

2,946‌

Global

Real

Estate

Securities

Fund

8,179‌

380‌

6,771‌

868‌

Government

&

High

Quality

Bond

Account

21,160‌

6,463‌

15,900‌

9,306‌

High

Yield

Fund

2,086‌

1,031‌

766‌

1,989‌

Inflation

Protection

Fund

—‌

8,506‌

493‌

7,092‌

LargeCap

Value

Fund

III

3,442‌

95‌

3,394‌

—‌

Origin

Emerging

Markets

Fund

1,718‌

232‌

420‌

1,054‌

Principal

Active

High

Yield

ETF

12,000‌

—‌

7,532‌

3,054‌

Principal

Capital

Appreciation

Fund

3,243‌

5,683‌

2,561‌

5,292‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

1,277‌

—‌

1,277‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

3,795‌

17,501‌

21,296‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

19,063‌

—‌

16,044‌

—‌

Principal

U.S.

Mega-Cap

ETF

8,010‌

—‌

3,186‌

3,729‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

1,992‌

—‌

1,980‌

—‌

Short-Term

Income

Fund

14,944‌

484‌

6,110‌

8,599‌

Small-

MidCap

Dividend

Income

Fund

4,192‌

2,412‌

3,937‌

1,656‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

16,670‌

2,102‌

5,523‌

10,745‌

$

193,752‌

$

105,986‌

$

126,354‌

$

143,024‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(174‌)

$

39‌

$

(2,725‌)

Bond

Market

Index

Fund

491‌

(69‌)

—‌

(1,475‌)

Core

Fixed

Income

Fund

955‌

(947‌)

—‌

(4,803‌)

Diversified

International

Fund

35‌

(428‌)

—‌

(808‌)

Diversified

Real

Asset

Fund

81‌

321‌

—‌

(462‌)

Equity

Income

Account

413‌

198‌

831‌

(2,036‌)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

303‌

(467‌)

—‌

(399‌)

Global

Real

Estate

Securities

Fund

(7‌)

1,285‌

17‌

(2,205‌)

Government

&

High

Quality

Bond

Account

176‌

(1,968‌)

—‌

(449‌)

High

Yield

Fund

131‌

(80‌)

—‌

(282‌)

Inflation

Protection

Fund

426‌

(37‌)

—‌

(884‌)

LargeCap

Value

Fund

III

—‌

(94‌)

—‌

(49‌)

Origin

Emerging

Markets

Fund

31‌

(99‌)

—‌

(377‌)

Principal

Active

High

Yield

ETF

462‌

(164‌)

—‌

(1,250‌)

Principal

Capital

Appreciation

Fund

52‌

(648‌)

—‌

(425‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

3‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

20‌

—‌

—‌

—‌

Principal

Investment

Grade

Corporate

Active

ETF

355‌

(3,594‌)

—‌

575‌

Principal

U.S.

Mega-Cap

ETF

80‌

1,234‌

—‌

(2,329‌)

Principal

U.S.

Small-Cap

Multi-Factor

ETF

—‌

745‌

—‌

(757‌)

Short-Term

Income

Fund

194‌

(217‌)

—‌

(502‌)

Small-

MidCap

Dividend

Income

Fund

78‌

(660‌)

68‌

(351‌)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

715‌

(717‌)

—‌

(1,787‌)

$

4,994‌

$

(6,580‌)

$

955‌

$

(23,780‌)

Amounts

in

thousands.

(a)

The

negative

income

is

a

result

of

updated

information

received,

related

to

estimated

distributions

from

Real

Estate

Investment

Trusts

(“REITs”),

reported

in

the

prior

year.

Schedule

of

Investments

SAM

Strategic

Growth

Portfolio

December

31,

2022

See

accompanying

notes.

242

INVESTMENT

COMPANIES

-

99.98%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.70%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

2,373,134‌

$

2,373‌

Principal

Exchange-Traded

Funds

-

11.84%

Principal

U.S.

Mega-Cap

ETF

(a)

862,000‌

31,084‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

(a)

231,100‌

9,035‌

$

40,119‌

Principal

Funds,

Inc.

Class

R-6

-

39.20%

Blue

Chip

Fund

(a),(c)

2,037,871‌

57,590‌

Diversified

International

Fund

(a)

2,199,701‌

25,055‌

Diversified

Real

Asset

Fund

(a)

821,011‌

9,023‌

International

Small

Company

Fund

(a)

939,024‌

8,507‌

LargeCap

Growth

Fund

I

(a),(c)

777,543‌

10,225‌

Origin

Emerging

Markets

Fund

(a)

2,519,010‌

22,470‌

$

132,870‌

Principal

Funds,

Inc.

Institutional

Class

-

25.47%

Bond

Market

Index

Fund

(a)

1,161,499‌

9,733‌

LargeCap

Value

Fund

III

(a)

1,019,727‌

17,244‌

Overseas

Fund

(a)

1,588,739‌

14,696‌

Principal

Capital

Appreciation

Fund

(a)

806,855‌

44,659‌

$

86,332‌

Principal

Variable

Contracts

Funds,

Inc.  Class

1

-

22.77%

Equity

Income

Account

(a)

2,023,828‌

53,712‌

MidCap

Account

(a)

457,712‌

23,458‌

$

77,170‌

TOTAL

INVESTMENT

COMPANIES

$

338,864‌

Total

Investments

$

338,864‌

Other

Assets

and

Liabilities

-  0.02%

62‌

TOTAL

NET

ASSETS

-

100.00%

$

338,926‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Non-income

producing

security

Portfolio

Summary  (unaudited)

Fund

Type

Percent

Domestic

Equity

Funds

72.89‌%

International

Equity

Funds

13.47‌%

Fixed

Income

Funds

10.26‌%

Specialty

Funds

2.66‌%

Money

Market

Funds

0.70‌%

Other

Assets

and

Liabilities

0.02‌%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

SAM

Strategic

Growth

Portfolio

December

31,

2022

See

accompanying

notes.

243

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

61,196‌

$

20,309‌

$

2,217‌

$

57,590‌

Bond

Market

Index

Fund

—‌

10,733‌

408‌

9,733‌

Diversified

International

Fund

25,501‌

6,874‌

1,482‌

25,055‌

Diversified

Real

Asset

Fund

19,442‌

1,698‌

10,452‌

9,023‌

Edge

MidCap

Fund

16,427‌

206‌

14,411‌

—‌

Equity

Income

Account

49,597‌

22,079‌

6,343‌

53,712‌

Global

Real

Estate

Securities

Fund

3,238‌

—‌

3,145‌

—‌

International

Small

Company

Fund

9,801‌

1,789‌

626‌

8,507‌

LargeCap

Growth

Fund

I

53,778‌

1,970‌

31,684‌

10,225‌

LargeCap

Value

Fund

III

33,629‌

4,460‌

17,621‌

17,244‌

MidCap

Account

13,367‌

16,437‌

1,985‌

23,458‌

Origin

Emerging

Markets

Fund

25,779‌

13,705‌

10,909‌

22,470‌

Overseas

Fund

15,482‌

3,962‌

2,708‌

14,696‌

Principal

Capital

Appreciation

Fund

9,406‌

44,283‌

2,766‌

44,659‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

—‌

2,373‌

—‌

2,373‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

9,966‌

12,699‌

22,665‌

—‌

Principal

U.S.

Mega-Cap

ETF

43,423‌

44‌

4,629‌

31,084‌

Principal

U.S.

Small-Cap

Multi-Factor

ETF

38,607‌

—‌

24,059‌

9,035‌

$

428,639‌

$

163,621‌

$

158,110‌

$

338,864‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—‌

$

(689‌)

$

402‌

$

(21,009‌)

Bond

Market

Index

Fund

159‌

(22‌)

—‌

(570‌)

Diversified

International

Fund

279‌

(380‌)

—‌

(5,458‌)

Diversified

Real

Asset

Fund

562‌

265‌

521‌

(1,930‌)

Edge

MidCap

Fund

—‌

(271‌)

—‌

(1,951‌)

Equity

Income

Account

2,282‌

882‌

4,594‌

(12,503‌)

Global

Real

Estate

Securities

Fund

(7‌)

1,184‌

7‌

(1,277‌)

International

Small

Company

Fund

109‌

(192‌)

—‌

(2,265‌)

LargeCap

Growth

Fund

I

—‌

(3,771‌)

1,059‌

(10,068‌)

LargeCap

Value

Fund

III

287‌

(624‌)

1,323‌

(2,600‌)

MidCap

Account

43‌

(154‌)

1,482‌

(4,207‌)

Origin

Emerging

Markets

Fund

663‌

(451‌)

—‌

(5,654‌)

Overseas

Fund

365‌

(444‌)

776‌

(1,596‌)

Principal

Capital

Appreciation

Fund

440‌

(798‌)

—‌

(5,466‌)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

5‌

—‌

—‌

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

52‌

—‌

—‌

—‌

Principal

U.S.

Mega-Cap

ETF

589‌

943‌

—‌

(8,697‌)

Principal

U.S.

Small-Cap

Multi-Factor

ETF

269‌

5,971‌

—‌

(11,484‌)

$

6,097‌

$

1,449‌

$

10,164‌

$

(96,735‌)

Amounts

in

thousands.

(a)

The

negative

income

is

a

result

of

updated

information

received,

related

to

estimated

distributions

from

Real

Estate

Investment

Trusts

(“REITs”),

reported

in

the

prior

year.

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

244

INVESTMENT

COMPANIES

-

0.56%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.56%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

3‌

$

—‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

755,062‌

755‌

$

755‌

TOTAL

INVESTMENT

COMPANIES

$

755‌

BONDS

-

87.29%

Principal

Amount

(000's)

Value

(000's)

Aerospace

&

Defense

-

0.18%

Raytheon

Technologies

Corp

3.20%,

03/15/2024

$

250‌

$

245‌

Agriculture

-

0.07%

Bunge

Ltd

Finance

Corp

1.63%,

08/17/2025

100‌

91‌

Airlines

-

0.39%

Alaska

Airlines

2020-1

Class

A

Pass

Through

Trust

4.80%,

02/15/2029

(d)

232‌

221‌

American

Airlines

2013-2

Class

A

Pass

Through

Trust

4.95%,

07/15/2024

82‌

82‌

Delta

Air

Lines

Inc

/

SkyMiles

IP

Ltd

4.50%,

10/20/2025

(d)

229‌

223‌

$

526‌

Automobile

Asset

Backed

Securities

-

7.92%

Americredit

Automobile

Receivables

Trust

2022-1

2.05%,

01/20/2026

1,067‌

1,054‌

CPS

Auto

Receivables

Trust

2021-D

0.61%,

10/15/2025

(d)

104‌

103‌

CPS

Auto

Receivables

Trust

2022-A

0.98%,

04/16/2029

(d)

201‌

198‌

CPS

Auto

Receivables

Trust

2022-B

2.88%,

06/15/2026

(d)

1,281‌

1,258‌

Ford

Credit

Auto

Owner

Trust

2018-REV2

3.47%,

01/15/2030

(d)

800‌

789‌

Ford

Credit

Auto

Owner

Trust

2019-REV1

3.52%,

07/15/2030

(d)

300‌

294‌

Ford

Credit

Auto

Owner

Trust

2020-REV2

1.06%,

04/15/2033

(d)

475‌

425‌

Ford

Credit

Auto

Owner

Trust

2021-REV1

1.37%,

10/17/2033

(d)

250‌

223‌

Navistar

Financial

Dealer

Note

Master

Owner

Trust

II

5.19%,

05/25/2027

(d)

800‌

802‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

1.25%

OneMain

Direct

Auto

Receivables

Trust

2019-1

3.63%,

09/14/2027

(d)

750‌

720‌

OneMain

Direct

Auto

Receivables

Trust

2021-1

0.87%,

07/14/2028

(d)

750‌

694‌

OneMain

Direct

Auto

Receivables

Trust

2022-1

4.65%,

03/14/2029

(d)

500‌

485‌

Santander

Drive

Auto

Receivables

Trust

2022-1

1.36%,

12/16/2024

230‌

230‌

Santander

Drive

Auto

Receivables

Trust

2022-5

3.98%,

01/15/2025

300‌

299‌

Toyota

Auto

Loan

Extended

Note

Trust

2019-1

2.56%,

11/25/2031

(d)

250‌

241‌

Toyota

Auto

Loan

Extended

Note

Trust

2020-1

1.35%,

05/25/2033

(d)

200‌

183‌

Westlake

Automobile

Receivables

Trust

2021-1

0.39%,

10/15/2024

(d)

27‌

27‌

0.64%,

03/16/2026

(d)

250‌

246‌

Westlake

Automobile

Receivables

Trust

2021-2

0.32%,

04/15/2025

(d)

253‌

251‌

Westlake

Automobile

Receivables

Trust

2022-1

1.97%,

12/16/2024

(d)

1,150‌

1,138‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Automobile

Asset

Backed

Securities

(continued)

Westlake

Automobile

Receivables

Trust

2022-2

4.94%,

08/15/2025

(d)

$

498‌

$

495‌

1.00

x

30

Day

Average

Secured

Overnight

Financing

Rate

+

1.13%

World

Omni

Auto

Receivables

Trust

2022-A

1.15%,

04/15/2025

471‌

465‌

$

10,620‌

Banks

-

15.86%

Bank

of

America

Corp

0.98%,

09/25/2025

(e)

1,250‌

1,151‌

Secured

Overnight

Financing

Rate

+

0.91%

1.20%,

10/24/2026

(e)

700‌

622‌

Secured

Overnight

Financing

Rate

+

1.01%

1.32%,

06/19/2026

(e)

600‌

540‌

Secured

Overnight

Financing

Rate

+

1.15%

4.20%,

08/26/2024

750‌

738‌

Bank

of

Montreal

0.95%,

01/22/2027

(e)

600‌

530‌

Secured

Overnight

Financing

Rate

+

0.60%

Bank

of

New

York

Mellon

Corp/The

4.59%,

04/26/2024

500‌

497‌

Secured

Overnight

Financing

Rate

+

0.26%

Bank

of

Nova

Scotia/The

1.30%,

09/15/2026

307‌

268‌

Barclays

PLC

2.28%,

11/24/2027

(e)

500‌

432‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.05%

5.30%,

08/09/2026

(e)

500‌

496‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.30%

BNP

Paribas

SA

3.50%,

03/01/2023

(d)

250‌

249‌

Citigroup

Inc

0.78%,

10/30/2024

(e)

400‌

383‌

Secured

Overnight

Financing

Rate

+

0.69%

1.12%,

01/28/2027

(e)

400‌

349‌

Secured

Overnight

Financing

Rate

+

0.77%

3.50%,

05/15/2023

250‌

249‌

4.00%,

08/05/2024

274‌

269‌

4.04%,

06/01/2024

(e)

250‌

248‌

3

Month

USD

LIBOR

+

1.02%

Credit

Suisse

Group

AG

4.21%,

06/12/2024

(d),(e)

850‌

829‌

3

Month

USD

LIBOR

+

1.24%

Deutsche

Bank

AG/New

York

NY

0.90%,

05/28/2024

175‌

164‌

0.96%,

11/08/2023

400‌

385‌

Fifth

Third

Bancorp

3.65%,

01/25/2024

200‌

197‌

4.30%,

01/16/2024

400‌

396‌

First

Republic

Bank/CA

1.91%,

02/12/2024

(e)

250‌

249‌

Secured

Overnight

Financing

Rate

+

0.62%

Goldman

Sachs

Group

Inc/The

1.22%,

12/06/2023

500‌

483‌

2.64%,

02/24/2028

(e)

300‌

267‌

Secured

Overnight

Financing

Rate

+

1.11%

3.20%,

02/23/2023

300‌

299‌

4.48%,

08/23/2028

(e)

500‌

479‌

Secured

Overnight

Financing

Rate

+

1.73%

5.10%,

12/09/2026

600‌

578‌

Secured

Overnight

Financing

Rate

+

0.79%

HSBC

Holdings

PLC

2.63%,

11/07/2025

(e)

200‌

188‌

Secured

Overnight

Financing

Rate

+

1.40%

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

245

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

JPMorgan

Chase

&

Co

1.04%,

02/04/2027

(e)

$

200‌

$

174‌

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

0.70%

1.05%,

11/19/2026

(e)

1,400‌

1,235‌

Secured

Overnight

Financing

Rate

+

0.80%

1.51%,

06/01/2024

(e)

300‌

295‌

Secured

Overnight

Financing

Rate

+

1.46%

KeyBank

NA/Cleveland

OH

5.85%,

11/15/2027

600‌

619‌

Morgan

Stanley

0.53%,

01/25/2024

(e)

750‌

745‌

Secured

Overnight

Financing

Rate

+

0.46%

1.59%,

05/04/2027

(e)

250‌

219‌

Secured

Overnight

Financing

Rate

+

0.88%

2.48%,

01/21/2028

(e)

300‌

267‌

Secured

Overnight

Financing

Rate

+

1.00%

4.10%,

05/22/2023

300‌

299‌

4.95%,

01/24/2025

1,000‌

986‌

Secured

Overnight

Financing

Rate

+

0.63%

NatWest

Group

PLC

4.27%,

03/22/2025

(e)

250‌

245‌

3

Month

USD

LIBOR

+

1.76%

NatWest

Markets

PLC

0.80%,

08/12/2024

(d)

200‌

185‌

1.60%,

09/29/2026

(d)

750‌

651‌

Royal

Bank

of

Canada

0.88%,

01/20/2026

300‌

266‌

Societe

Generale

SA

2.63%,

01/22/2025

(d)

300‌

282‌

Toronto-Dominion

Bank/The

0.30%,

06/02/2023

300‌

294‌

0.75%,

01/06/2026

300‌

265‌

Truist

Financial

Corp

1.27%,

03/02/2027

(e)

348‌

308‌

Secured

Overnight

Financing

Rate

+

0.61%

UBS

Group

AG

1.01%,

07/30/2024

(d),(e)

250‌

243‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.83%

4.49%,

08/05/2025

(d),(e)

750‌

737‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.60%

Wells

Fargo

&

Co

1.65%,

06/02/2024

(e)

400‌

394‌

Secured

Overnight

Financing

Rate

+

1.60%

2.16%,

02/11/2026

(e)

200‌

187‌

3

Month

USD

LIBOR

+

0.75%

2.19%,

04/30/2026

(e)

400‌

372‌

Secured

Overnight

Financing

Rate

+

2.00%

2.41%,

10/30/2025

(e)

500‌

473‌

Secured

Overnight

Financing

Rate

+

1.09%

$

21,276‌

Beverages

-

0.77%

JDE

Peet's

NV

0.80%,

09/24/2024

(d)

500‌

457‌

Keurig

Dr

Pepper

Inc

0.75%,

03/15/2024

600‌

569‌

$

1,026‌

Biotechnology

-

0.81%

Gilead

Sciences

Inc

0.75%,

09/29/2023

1,124‌

1,089‌

Building

Materials

-

0.23%

Martin

Marietta

Materials

Inc

4.25%,

07/02/2024

309‌

305‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Chemicals

-

0.67%

Celanese

US

Holdings

LLC

3.50%,

05/08/2024

$

200‌

$

193‌

Nutrien

Ltd

5.90%,

11/07/2024

450‌

456‌

Westlake

Corp

3.60%,

08/15/2026

268‌

252‌

$

901‌

Commercial

Mortgage

Backed

Securities

-

9.23%

Arbor

Multifamily

Mortgage

Securities

Trust

2022-MF4

3.27%,

02/15/2055

(d),(f)

545‌

502‌

BX

2021-LBA3

Mortgage

Trust

5.01%,

10/15/2036

(d)

250‌

240‌

1.00

x

1

Month

USD

LIBOR

+

0.69%

BX

Commercial

Mortgage

Trust

2021-21M

5.05%,

10/15/2036

(d)

279‌

268‌

1.00

x

1

Month

USD

LIBOR

+

0.73%

BX

Commercial

Mortgage

Trust

2021-ACNT

5.17%,

11/15/2038

(d)

400‌

385‌

1.00

x

1

Month

USD

LIBOR

+

0.85%

BX

Commercial

Mortgage

Trust

2021-SOAR

4.99%,

06/15/2038

(d)

298‌

287‌

1.00

x

1

Month

USD

LIBOR

+

0.67%

BX

Commercial

Mortgage

Trust

2021-VINO

4.97%,

05/15/2038

(d)

200‌

192‌

1.00

x

1

Month

USD

LIBOR

+

0.65%

BX

Commercial

Mortgage

Trust

2021-VOLT

5.02%,

09/15/2036

(d)

1,000‌

963‌

1.00

x

1

Month

USD

LIBOR

+

0.70%

BX

Commercial

Mortgage

Trust

2021-XL2

5.01%,

10/15/2038

(d)

927‌

891‌

1.00

x

1

Month

USD

LIBOR

+

0.69%

BX

Trust

2021-BXMF

4.95%,

10/15/2026

(d)

375‌

359‌

1.00

x

1

Month

USD

LIBOR

+

0.64%

BX

Trust

2021-LGCY

4.82%,

10/15/2036

(d)

750‌

716‌

1.00

x

1

Month

USD

LIBOR

+

0.51%

Cold

Storage

Trust

2020-ICE5

5.22%,

11/15/2037

(d)

590‌

573‌

1.00

x

1

Month

USD

LIBOR

+

0.90%

Credit

Suisse

Mortgage

Capital

Certificates

2019-ICE4

5.30%,

05/15/2036

(d)

200‌

198‌

1.00

x

1

Month

USD

LIBOR

+

0.98%

ELP

Commercial

Mortgage

Trust

2021-ELP

5.02%,

11/15/2038

(d)

750‌

720‌

1.00

x

1

Month

USD

LIBOR

+

0.70%

Ginnie

Mae

0.06%,

02/16/2055

(f),(g)

2,365‌

3‌

0.20%,

10/16/2054

(f),(g)

1,312‌

17‌

0.31%,

01/16/2054

(f),(g)

426‌

3‌

0.32%,

01/16/2055

(f),(g)

2,589‌

16‌

0.32%,

09/16/2055

(f),(g)

998‌

9‌

0.78%,

06/16/2045

(f),(g)

336‌

5‌

JP

Morgan

Chase

Commercial

Mortgage

Securities

Trust

2021-MHC

5.12%,

04/15/2038

(d)

189‌

184‌

1.00

x

1

Month

USD

LIBOR

+

0.80%

Life

2021-BMR

Mortgage

Trust

5.02%,

03/15/2038

(d)

639‌

619‌

1.00

x

1

Month

USD

LIBOR

+

0.70%

Life

2022-BMR

Mortgage

Trust

5.63%,

05/15/2039

(d)

800‌

780‌

1.00

x

CME

Term

Secured

Overnight

Financing

Rate

1

Month

+

1.30%

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

246

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Commercial

Mortgage

Backed

Securities

(continued)

MHC

Commercial

Mortgage

Trust

2021-MHC

5.12%,

04/15/2038

(d)

$

1,200‌

$

1,164‌

1.00

x

1

Month

USD

LIBOR

+

0.80%

MHC

Trust

2021-MHC2

5.17%,

05/15/2038

(d)

400‌

388‌

1.00

x

1

Month

USD

LIBOR

+

0.85%

MHP

2021-STOR

5.02%,

07/15/2038

(d)

400‌

386‌

1.00

x

1

Month

USD

LIBOR

+

0.70%

MHP

2022-MHIL

5.15%,

01/15/2027

(d)

486‌

465‌

1.00

x

CME

Term

Secured

Overnight

Financing

Rate

1

Month

+

0.81%

OPG

Trust

2021-PORT

4.80%,

10/15/2036

(d)

685‌

655‌

1.00

x

1

Month

USD

LIBOR

+

0.48%

SREIT

Trust

2021-MFP

5.05%,

11/15/2038

(d)

500‌

481‌

1.00

x

1

Month

USD

LIBOR

+

0.73%

TPGI

Trust

2021-DGWD

5.02%,

06/15/2026

(d)

950‌

915‌

1.00

x

1

Month

USD

LIBOR

+

0.70%

$

12,384‌

Computers

-

1.09%

Apple

Inc

1.13%,

05/11/2025

1,200‌

1,105‌

Dell

International

LLC

/

EMC

Corp

5.45%,

06/15/2023

52‌

52‌

Hewlett

Packard

Enterprise

Co

4.45%,

10/02/2023

300‌

298‌

$

1,455‌

Consumer

Products

-

0.33%

Avery

Dennison

Corp

0.85%,

08/15/2024

475‌

443‌

Diversified

Financial

Services

-

0.52%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

1.65%,

10/29/2024

500‌

461‌

Capital

One

Financial

Corp

3.90%,

01/29/2024

242‌

239‌

$

700‌

Electric

-

7.61%

AES

Corp/The

1.38%,

01/15/2026

400‌

355‌

Alliant

Energy

Finance

LLC

1.40%,

03/15/2026

(d)

150‌

130‌

3.75%,

06/15/2023

(d)

900‌

894‌

American

Electric

Power

Co

Inc

2.03%,

03/15/2024

350‌

337‌

4.92%,

11/01/2023

600‌

597‌

3

Month

USD

LIBOR

+

0.48%

Black

Hills

Corp

1.04%,

08/23/2024

550‌

513‌

4.25%,

11/30/2023

750‌

746‌

Dominion

Energy

Inc

3.07%,

08/15/2024

(f)

200‌

193‌

5.30%,

09/15/2023

600‌

599‌

3

Month

USD

LIBOR

+

0.53%

DTE

Energy

Co

1.05%,

06/01/2025

100‌

91‌

2.53%,

10/01/2024

(f)

300‌

287‌

Duke

Energy

Corp

0.90%,

09/15/2025

250‌

223‌

Emera

US

Finance

LP

0.83%,

06/15/2024

395‌

369‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Entergy

Louisiana

LLC

0.62%,

11/17/2023

$

91‌

$

88‌

0.95%,

10/01/2024

500‌

465‌

Evergy

Inc

2.45%,

09/15/2024

200‌

190‌

Fells

Point

Funding

Trust

3.05%,

01/31/2027

(d)

750‌

682‌

Florida

Power

&

Light

Co

4.57%,

05/10/2023

200‌

200‌

Secured

Overnight

Financing

Rate

+

0.25%

Fortis

Inc/Canada

3.06%,

10/04/2026

413‌

383‌

NextEra

Energy

Capital

Holdings

Inc

4.47%,

11/03/2023

800‌

797‌

Secured

Overnight

Financing

Rate

+

0.40%

Public

Service

Enterprise

Group

Inc

0.80%,

08/15/2025

400‌

358‌

2.88%,

06/15/2024

100‌

96‌

Southwestern

Electric

Power

Co

1.65%,

03/15/2026

400‌

358‌

Tucson

Electric

Power

Co

3.05%,

03/15/2025

100‌

96‌

Vistra

Operations

Co

LLC

3.70%,

01/30/2027

(d)

500‌

456‌

Xcel

Energy

Inc

0.50%,

10/15/2023

500‌

482‌

1.75%,

03/15/2027

250‌

219‌

$

10,204‌

Entertainment

-

0.76%

Warnermedia

Holdings

Inc

3.76%,

03/15/2027

(d)

300‌

270‌

6.09%,

03/15/2024

(d)

750‌

748‌

Secured

Overnight

Financing

Rate

+

1.78%

$

1,018‌

Food

-

1.46%

Nestle

Holdings

Inc

0.38%,

01/15/2024

(d)

850‌

811‌

0.61%,

09/14/2024

(d)

500‌

466‌

Pilgrim's

Pride

Corp

5.88%,

09/30/2027

(d)

700‌

679‌

$

1,956‌

Forest

Products

&

Paper

-

0.27%

Georgia-Pacific

LLC

1.75%,

09/30/2025

(d)

400‌

365‌

Gas

-

0.27%

NiSource

Inc

0.95%,

08/15/2025

400‌

361‌

Healthcare

-

Products

-

0.36%

PerkinElmer

Inc

0.55%,

09/15/2023

500‌

484‌

Healthcare

-

Services

-

1.45%

Centene

Corp

4.25%,

12/15/2027

500‌

469‌

HCA

Inc

5.25%,

06/15/2026

1,000‌

988‌

Humana

Inc

0.65%,

08/03/2023

500‌

487‌

$

1,944‌

Home

Builders

-

0.14%

DR

Horton

Inc

2.50%,

10/15/2024

200‌

191‌

Home

Furnishings

-

0.18%

Panasonic

Holdings

Corp

2.68%,

07/19/2024

(d)

250‌

239‌

Insurance

-

3.20%

Athene

Global

Funding

1.72%,

01/07/2025

(d)

400‌

369‌

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

247

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

Five

Corners

Funding

Trust

4.42%,

11/15/2023

(d)

$

750‌

$

744‌

Guardian

Life

Global

Funding

0.88%,

12/10/2025

(d)

500‌

442‌

1.10%,

06/23/2025

(d)

550‌

498‌

Markel

Corp

3.50%,

11/01/2027

209‌

192‌

MassMutual

Global

Funding

II

2.75%,

06/22/2024

(d)

500‌

483‌

Metropolitan

Life

Global

Funding

I

0.90%,

06/08/2023

(d)

350‌

344‌

3.60%,

01/11/2024

(d)

600‌

591‌

New

York

Life

Global

Funding

2.00%,

01/22/2025

(d)

200‌

188‌

Northwestern

Mutual

Global

Funding

0.80%,

01/14/2026

(d)

500‌

442‌

$

4,293‌

Internet

-

0.33%

eBay

Inc

1.40%,

05/10/2026

500‌

443‌

Media

-

0.36%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

4.91%,

07/23/2025

292‌

286‌

Paramount

Global

4.75%,

05/15/2025

200‌

197‌

$

483‌

Mining

-

0.46%

Anglo

American

Capital

PLC

5.38%,

04/01/2025

(d)

400‌

396‌

Glencore

Funding

LLC

1.63%,

09/01/2025

(d)

250‌

226‌

$

622‌

Mortgage

Backed

Securities

-

2.27%

CHL

Mortgage

Pass-Through

Trust

2003-46

3.91%,

01/19/2034

(f)

9‌

8‌

GS

Mortgage-Backed

Securities

Corp

Trust

2020-PJ3

3.00%,

10/25/2050

(d),(f)

4‌

4‌

GS

Mortgage-Backed

Securities

Corp

Trust

2021-PJ3

2.50%,

08/25/2051

(d),(f)

118‌

102‌

JP

Morgan

Mortgage

Trust

2004-A3

3.32%,

07/25/2034

(f)

6‌

5‌

JP

Morgan

Mortgage

Trust

2004-S1

5.00%,

09/25/2034

10‌

10‌

JP

Morgan

Mortgage

Trust

2021-1

2.50%,

06/25/2051

(d),(f)

323‌

284‌

Morgan

Stanley

Residential

Mortgage

Loan

Trust

2020-1

2.50%,

12/25/2050

(d),(f)

164‌

144‌

Oceanview

Mortgage

Trust

2021-3

2.50%,

06/25/2051

(d),(f)

419‌

359‌

PHH

Mortgage

Trust

Series

2008-CIM1

6.37%,

06/25/2038

31‌

28‌

1.00

x

1

Month

USD

LIBOR

+

2.25%

PSMC

2021-3

Trust

2.50%,

08/25/2051

(d),(f)

817‌

703‌

Sequoia

Mortgage

Trust

2020-4

2.50%,

11/25/2050

(d),(f)

157‌

141‌

Sequoia

Mortgage

Trust

2021-3

2.50%,

05/25/2051

(d),(f)

405‌

350‌

Sequoia

Mortgage

Trust

2021-4

2.50%,

06/25/2051

(d),(f)

606‌

520‌

Wells

Fargo

Mortgage

Backed

Securities

2020-2

Trust

3.00%,

12/25/2049

(d),(f)

19‌

19‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Mortgage

Backed

Securities

(continued)

Wells

Fargo

Mortgage

Backed

Securities

2020-3

Trust

3.00%,

06/25/2050

(d),(f)

$

18‌

$

17‌

Wells

Fargo

Mortgage

Backed

Securities

2020-4

Trust

3.00%,

07/25/2050

(d),(f)

239‌

200‌

Wells

Fargo

Mortgage

Backed

Securities

2020-5

Trust

2.50%,

09/25/2050

(d),(f)

97‌

85‌

Wells

Fargo

Mortgage

Backed

Securities

2021-1

Trust

2.50%,

12/25/2050

(d),(f)

71‌

61‌

$

3,040‌

Office

&

Business

Equipment

-

0.27%

CDW

LLC

/

CDW

Finance

Corp

2.67%,

12/01/2026

400‌

355‌

Oil

&

Gas

-

0.85%

Chevron

USA

Inc

0.43%,

08/11/2023

300‌

292‌

0.69%,

08/12/2025

400‌

361‌

Exxon

Mobil

Corp

1.57%,

04/15/2023

150‌

149‌

2.99%,

03/19/2025

200‌

193‌

Phillips

66

3.85%,

04/09/2025

150‌

146‌

$

1,141‌

Other

Asset

Backed

Securities

-

12.64%

AMMC

CLO

15

Ltd

5.20%,

01/15/2032

(d)

600‌

590‌

1.00

x

3

Month

USD

LIBOR

+

1.12%

Bardot

CLO

Ltd

5.41%,

10/22/2032

(d)

500‌

490‌

1.00

x

3

Month

USD

LIBOR

+

1.09%

CCG

Receivables

Trust

2019-2

2.11%,

03/15/2027

(d)

9‌

9‌

CCG

Receivables

Trust

2020-1

0.54%,

12/14/2027

(d)

68‌

67‌

CCG

Receivables

Trust

2021-1

0.30%,

06/14/2027

(d)

242‌

234‌

CF

Hippolyta

Issuer

LLC

1.53%,

03/15/2061

(d)

1,666‌

1,440‌

1.69%,

07/15/2060

(d)

227‌

203‌

Dewolf

Park

CLO

Ltd

5.00%,

10/15/2030

(d)

1,500‌

1,479‌

1.00

x

3

Month

USD

LIBOR

+

0.92%

Fortress

Credit

Opportunities

XVII

CLO

Ltd

5.23%,

01/15/2030

(d)

837‌

823‌

1.00

x

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

1.37%

KKR

CLO

18

Ltd

5.13%,

07/18/2030

(d)

943‌

931‌

1.00

x

3

Month

USD

LIBOR

+

0.94%

KKR

Lending

Partners

III

Clo

LLC

5.62%,

10/20/2030

(d)

337‌

333‌

1.00

x

3

Month

USD

LIBOR

+

1.38%

5.79%,

10/20/2030

(d)

400‌

390‌

1.00

x

3

Month

USD

LIBOR

+

1.55%

Lake

Shore

MM

CLO

III

LLC

5.56%,

10/17/2031

(d)

1,000‌

977‌

1.00

x

3

Month

USD

LIBOR

+

1.48%

Madison

Park

Funding

XVIII

Ltd

5.22%,

10/21/2030

(d)

500‌

492‌

1.00

x

3

Month

USD

LIBOR

+

0.94%

Marathon

CLO

X

Ltd

5.61%,

11/15/2029

(d)

210‌

207‌

1.00

x

3

Month

USD

LIBOR

+

1.00%

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

248

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Other

Asset

Backed

Securities

(continued)

Marathon

CLO

XIII

Ltd

5.40%,

04/15/2032

(d)

$

500‌

$

491‌

1.00

x

3

Month

USD

LIBOR

+

1.32%

MMAF

Equipment

Finance

LLC

2020-A

0.74%,

04/09/2024

(d)

115‌

113‌

MVW

2021-1W

LLC

1.14%,

01/22/2041

(d)

57‌

52‌

MVW

Owner

Trust

2018-1

3.45%,

01/21/2036

(d)

92‌

89‌

Oaktree

CLO

2019-4

Ltd

5.36%,

10/20/2032

(d)

1,000‌

975‌

1.00

x

3

Month

USD

LIBOR

+

1.12%

Palmer

Square

Loan

Funding

2022-1

Ltd

4.91%,

04/15/2030

(d)

460‌

453‌

1.00

x

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

1.05%

Parliament

Funding

II

ltd

5.49%,

10/20/2031

(d)

400‌

391‌

1.00

x

3

Month

USD

LIBOR

+

1.25%

PFS

Financing

Corp

0.71%,

04/15/2026

(d)

250‌

235‌

0.97%,

02/15/2026

(d)

350‌

330‌

2.47%,

02/15/2027

(d)

1,000‌

939‌

Shackleton

2017-X

CLO

Ltd

5.13%,

04/20/2029

(d)

370‌

364‌

1.00

x

3

Month

USD

LIBOR

+

0.89%

Stratus

CLO

2021-2

Ltd

5.14%,

12/28/2029

(d)

222‌

219‌

1.00

x

3

Month

USD

LIBOR

+

0.90%

TCI-Flatiron

CLO

2016-1

Ltd

4.96%,

01/17/2032

(d)

750‌

740‌

1.00

x

CME

Term

Secured

Overnight

Financing

Rate

3

Month

+

1.10%

T-Mobile

US

Trust

2022-1

4.91%,

05/22/2028

(d)

1,500‌

1,498‌

Trafigura

Securitisation

Finance

PLC

2021-1

1.08%,

01/15/2025

(d)

600‌

551‌

Verizon

Master

Trust

5.23%,

11/22/2027

(f)

550‌

553‌

Voya

2012-4

Ltd

5.08%,

10/15/2030

(d)

250‌

246‌

1.00

x

3

Month

USD

LIBOR

+

1.00%

VSE

2018-A

VOI

Mortgage

LLC

3.56%,

02/20/2036

(d)

57‌

55‌

$

16,959‌

Packaging

&

Containers

-

0.34%

Graphic

Packaging

International

LLC

0.82%,

04/15/2024

(d)

300‌

281‌

1.51%,

04/15/2026

(d)

200‌

174‌

$

455‌

Pharmaceuticals

-

1.71%

AbbVie

Inc

2.60%,

11/21/2024

200‌

191‌

Bayer

US

Finance

II

LLC

3.88%,

12/15/2023

(d)

200‌

197‌

Bristol-Myers

Squibb

Co

0.54%,

11/13/2023

300‌

289‌

Cigna

Corp

0.61%,

03/15/2024

150‌

142‌

1.25%,

03/15/2026

800‌

713‌

GlaxoSmithKline

Capital

PLC

0.53%,

10/01/2023

500‌

484‌

Novartis

Capital

Corp

1.75%,

02/14/2025

300‌

283‌

$

2,299‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pipelines

-

1.89%

Buckeye

Partners

LP

4.15%,

07/01/2023

$

400‌

$

393‌

Energy

Transfer

LP

4.40%,

03/15/2027

250‌

237‌

5.55%,

02/15/2028

400‌

397‌

Kinder

Morgan

Inc

5.36%,

01/15/2023

500‌

500‌

3

Month

USD

LIBOR

+

1.28%

ONEOK

Partners

LP

5.00%,

09/15/2023

825‌

824‌

Southeast

Supply

Header

LLC

4.25%,

06/15/2024

(d)

200‌

186‌

$

2,537‌

REITs

-

2.79%

American

Tower

Trust

#1

3.07%,

03/15/2048

(d)

1,225‌

1,218‌

3.65%,

03/15/2048

(d)

270‌

244‌

Crown

Castle

Inc

1.35%,

07/15/2025

250‌

228‌

CubeSmart

LP

4.00%,

11/15/2025

65‌

62‌

Omega

Healthcare

Investors

Inc

4.50%,

01/15/2025

269‌

261‌

4.95%,

04/01/2024

250‌

246‌

SBA

Tower

Trust

1.63%,

05/15/2051

(d)

500‌

425‌

1.88%,

07/15/2050

(d)

125‌

110‌

2.33%,

07/15/2052

(d)

653‌

547‌

2.84%,

01/15/2050

(d)

225‌

212‌

Ventas

Realty

LP

3.50%,

04/15/2024

198‌

193‌

$

3,746‌

Semiconductors

-

0.29%

Microchip

Technology

Inc

4.33%,

06/01/2023

200‌

199‌

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA

Inc

2.70%,

05/01/2025

200‌

189‌

$

388‌

Software

-

0.76%

Oracle

Corp

1.65%,

03/25/2026

300‌

268‌

Roper

Technologies

Inc

1.00%,

09/15/2025

300‌

269‌

VMware

Inc

0.60%,

08/15/2023

500‌

487‌

$

1,024‌

Student

Loan

Asset

Backed

Securities

-

5.62%

Commonbond

Student

Loan

Trust

2018-BGS

3.56%,

09/25/2045

(d)

75‌

70‌

Commonbond

Student

Loan

Trust

2018-C-GS

3.87%,

02/25/2046

(d)

85‌

82‌

Commonbond

Student

Loan

Trust

2019-A-GS

2.54%,

01/25/2047

(d)

152‌

136‌

Commonbond

Student

Loan

Trust

2020-A-GS

1.98%,

08/25/2050

(d)

303‌

258‌

Commonbond

Student

Loan

Trust

2021-A-GS

1.20%,

03/25/2052

(d)

290‌

234‌

Commonbond

Student

Loan

Trust

2021-B-GS

1.17%,

09/25/2051

(d)

373‌

303‌

EDvestinU

Private

Education

Loan

Issue

No

3

LLC

1.80%,

11/25/2045

(d)

172‌

145‌

Keycorp

Student

Loan

Trust

2000-b

4.67%,

07/25/2029

17‌

17‌

1.00

x

3

Month

USD

LIBOR

+

0.31%

Laurel

Road

Prime

Student

Loan

Trust

2019-A

2.34%,

10/25/2048

(d)

10‌

10‌

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

249

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Student

Loan

Asset

Backed

Securities

(continued)

Navient

Private

Education

Refi

Loan

Trust

2019-A

3.42%,

01/15/2043

(d)

$

28‌

$

26‌

Navient

Private

Education

Refi

Loan

Trust

2019-G

2.40%,

10/15/2068

(d)

92‌

84‌

Navient

Private

Education

Refi

Loan

Trust

2020-D

1.69%,

05/15/2069

(d)

147‌

132‌

Navient

Private

Education

Refi

Loan

Trust

2020-F

1.22%,

07/15/2069

(d)

152‌

135‌

Navient

Private

Education

Refi

Loan

Trust

2020-G

1.17%,

09/16/2069

(d)

170‌

151‌

Navient

Private

Education

Refi

Loan

Trust

2020-H

1.31%,

01/15/2069

(d)

115‌

103‌

Navient

Private

Education

Refi

Loan

Trust

2021-A

0.84%,

05/15/2069

(d)

115‌

100‌

Navient

Private

Education

Refi

Loan

Trust

2021-B

0.94%,

07/15/2069

(d)

855‌

722‌

Navient

Private

Education

Refi

Loan

Trust

2021-c

1.06%,

10/15/2069

(d)

146‌

124‌

Navient

Private

Education

Refi

Loan

Trust

2021-E

0.97%,

12/16/2069

(d)

372‌

311‌

Navient

Private

Education

Refi

Loan

Trust

2021-F

1.11%,

02/18/2070

(d)

395‌

333‌

Navient

Private

Education

Refi

Loan

Trust

2022-A

2.23%,

07/15/2070

(d)

222‌

193‌

Nelnet

Student

Loan

Trust

2021-A

1.36%,

04/20/2062

(d)

651‌

576‌

Nelnet

Student

Loan

Trust

2021-C

1.32%,

04/20/2062

(d)

208‌

185‌

Nelnet

Student

Loan

Trust

2021-D

1.63%,

04/20/2062

(d)

410‌

370‌

SLM

Private

Credit

Student

Loan

Trust

2004-A

5.17%,

06/15/2033

48‌

46‌

1.00

x

3

Month

USD

LIBOR

+

0.40%

SLM

Private

Credit

Student

Loan

Trust

2004-B

5.10%,

03/15/2024

38‌

37‌

1.00

x

3

Month

USD

LIBOR

+

0.33%

SLM

Private

Credit

Student

Loan

Trust

2006-A

5.06%,

06/15/2039

410‌

385‌

1.00

x

3

Month

USD

LIBOR

+

0.29%

SLM

Private

Credit

Student

Loan

Trust

2006-B

4.97%,

12/15/2039

163‌

155‌

1.00

x

3

Month

USD

LIBOR

+

0.20%

SMB

Private

Education

Loan

Trust

2021-A

1.07%,

01/15/2053

(d)

181‌

156‌

SMB

Private

Education

Loan

Trust

2021-B

1.31%,

07/17/2051

(d)

416‌

371‌

SMB

Private

Education

Loan

Trust

2021-D

1.34%,

03/17/2053

(d)

746‌

653‌

SMB

Private

Education

Loan

Trust

2021-E

1.68%,

02/15/2051

(d)

545‌

492‌

SMB

Private

Education

Loan

Trust

2022-C

4.48%,

05/16/2050

(d)

457‌

437‌

$

7,532‌

Telecommunications

-

2.29%

AT&T

Inc

1.70%,

03/25/2026

600‌

541‌

5.54%,

02/15/2023

250‌

250‌

3

Month

USD

LIBOR

+

0.89%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Telecommunications

(continued)

Crown

Castle

Towers

LLC

3.66%,

05/15/2045

(d)

$

100‌

$

97‌

4.24%,

07/15/2048

(d)

290‌

263‌

NTT

Finance

Corp

0.37%,

03/03/2023

(d)

200‌

199‌

Sprint

Spectrum

Co

LLC

/

Sprint

Spectrum

Co

II

LLC

/

Sprint

Spectrum

Co

III

LLC

4.74%,

03/20/2025

(d)

647‌

639‌

5.15%,

03/20/2028

(d)

500‌

493‌

Verizon

Communications

Inc

5.09%,

03/20/2026

600‌

585‌

Secured

Overnight

Financing

Rate

+

0.79%

$

3,067‌

Transportation

-

0.51%

Canadian

Pacific

Railway

Co

1.35%,

12/02/2024

350‌

326‌

Ryder

System

Inc

1.75%,

09/01/2026

400‌

352‌

$

678‌

Trucking

&

Leasing

-

0.14%

Penske

Truck

Leasing

Co

Lp

/

PTL

Finance

Corp

3.45%,

07/01/2024

(d)

200‌

193‌

TOTAL

BONDS

$

117,078‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

11.70%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

0.01%

3.17%,

09/01/2035

$

6‌

$

6‌

1.00

x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.25%

Federal

National

Mortgage

Association

(FNMA)

-

0.02%

2.02%,

12/01/2032

3‌

3‌

1.00

x

12

Month

USD

LIBOR

+

1.64%

2.13%,

01/01/2035

3‌

3‌

1.00

x

12

Month

USD

LIBOR

+

1.75%

3.22%,

02/01/2037

9‌

9‌

1.00

x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.06%

3.31%,

02/01/2035

2‌

2‌

1.00

x

6

Month

USD

LIBOR

+

2.06%

3.81%,

08/01/2034

2‌

2‌

1.00

x

12

Month

USD

LIBOR

+

1.63%

3.83%,

07/01/2034

3‌

3‌

1.00

x

12

Month

USD

LIBOR

+

1.58%

4.02%,

04/01/2033

7‌

6‌

1.00

x

6

Month

USD

LIBOR

+

1.51%

4.42%,

11/01/2032

1‌

1‌

1.00

x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.29%

$

29‌

U.S.

Treasury

-

11.67%

0.63%,

03/31/2027

5,100‌

4,425‌

0.88%,

06/30/2026

2,500‌

2,236‌

1.25%,

11/30/2026

500‌

449‌

2.25%,

11/15/2027

3,400‌

3,133‌

2.38%,

05/15/2027

5,800‌

5,407‌

$

15,650‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

15,685‌

Total

Investments

$

133,518‌

Other

Assets

and

Liabilities

-  0.45%

604‌

TOTAL

NET

ASSETS

-

100.00%

$

134,122‌

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2022

See

accompanying

notes.

250

(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

$0

or

0.00%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

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

$67,208

or

50.11%

of

net

assets.

(e)

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.

(f)

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.

(g)

Security

is

an

Interest

Only

Strip.

Portfolio

Summary  (unaudited)

Sector

Percent

Asset

Backed

Securities

26.18‌%

Financial

22.37‌%

Government

11.67‌%

Mortgage

Securities

11.53‌%

Utilities

7.88‌%

Consumer,

Non-cyclical

6.96‌%

Communications

2.98‌%

Energy

2.74‌%

Technology

2.41‌%

Consumer,

Cyclical

1.47‌%

Basic

Materials

1.40‌%

Industrial

1.40‌%

Money

Market

Funds

0.56‌%

Other

Assets

and

Liabilities

0.45‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

2,742‌

$

1,987‌

$

755‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

1,991‌

69,356‌

71,347‌

—‌

$

1,991‌

$

72,098‌

$

73,334‌

$

755‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

3‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

28‌

—‌

—‌

—‌

$

31‌

$

—‌

$

—‌

$

—‌

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

5

Year

Note;

March

2023

Long

12‌

$

1,295‌

$

(7‌)

Total

$

(7‌)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

SmallCap

Account

December

31,

2022

See

accompanying

notes.

251

INVESTMENT

COMPANIES

-

0.47%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.47%

BlackRock

Liquidity

FedFund

-

Institutional

Class

4.01%

(a),(b)

606,657‌

$

607‌

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(c)

163,485‌

163‌

$

770‌

TOTAL

INVESTMENT

COMPANIES

$

770‌

COMMON

STOCKS

-

99.49%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

1.06%

AAR

Corp

(d)

39,000‌

$

1,751‌

Agriculture

-

1.80%

Darling

Ingredients

Inc

(d)

39,500‌

2,473‌

Vital

Farms

Inc

(d)

34,200‌

510‌

$

2,983‌

Airlines

-

0.20%

Sun

Country

Airlines

Holdings

Inc

(d)

21,200‌

336‌

Automobile

Parts

&

Equipment

-

0.82%

Visteon

Corp

(d)

10,400‌

1,361‌

Banks

-

10.26%

Ameris

Bancorp

40,500‌

1,909‌

BancFirst

Corp

8,800‌

776‌

Bancorp

Inc

/The

(d)

45,300‌

1,286‌

CVB

Financial

Corp

18,900‌

487‌

Enterprise

Financial

Services

Corp

22,400‌

1,097‌

First

Foundation

Inc

15,000‌

215‌

First

Interstate

BancSystem

Inc

35,000‌

1,353‌

First

Merchants

Corp

27,200‌

1,118‌

FNB

Corp/PA

112,300‌

1,466‌

Independent

Bank

Corp

4,102‌

346‌

Independent

Bank

Corp/MI

19,700‌

471‌

Lakeland

Bancorp

Inc

23,800‌

419‌

Popular

Inc

16,700‌

1,108‌

Sandy

Spring

Bancorp

Inc

17,100‌

602‌

United

Community

Banks

Inc

/GA

65,220‌

2,204‌

Webster

Financial

Corp

44,408‌

2,102‌

$

16,959‌

Biotechnology

-

4.77%

ADC

Therapeutics

SA

(d)

40,200‌

154‌

Allogene

Therapeutics

Inc

(d)

26,100‌

164‌

Cellectis

SA

ADR

(d)

74,600‌

157‌

Denali

Therapeutics

Inc

(d)

27,000‌

751‌

Design

Therapeutics

Inc

(d)

26,100‌

268‌

Horizon

Therapeutics

Plc

(d)

18,900‌

2,151‌

Immunocore

Holdings

PLC

ADR

(d)

18,700‌

1,066‌

Insmed

Inc

(d)

43,800‌

875‌

Iovance

Biotherapeutics

Inc

(d)

40,000‌

256‌

MacroGenics

Inc

(d)

28,500‌

191‌

Olink

Holding

AB

ADR

(d),(e)

34,200‌

868‌

Seagen

Inc

(d)

7,700‌

989‌

$

7,890‌

Building

Materials

-

1.76%

Modine

Manufacturing

Co

(d)

45,000‌

894‌

Summit

Materials

Inc

(d)

37,022‌

1,051‌

Trex

Co

Inc

(d)

22,900‌

969‌

$

2,914‌

Chemicals

-

0

.29%

Koppers

Holdings

Inc

17,100‌

482‌

Commercial

Services

-

3.24%

ABM

Industries

Inc

30,584‌

1,358‌

AMN

Healthcare

Services

Inc

(d)

12,400‌

1,275‌

Cross

Country

Healthcare

Inc

(d)

24,600‌

654‌

First

Advantage

Corp

(d)

35,900‌

467‌

ICF

International

Inc

9,700‌

961‌

Medifast

Inc

5,500‌

634‌

$

5,349‌

Computers

-

2.80%

ExlService

Holdings

Inc

(d)

17,000‌

2,880‌

KnowBe4

Inc

(d)

70,579‌

1,749‌

$

4,629‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Consumer

Products

-

0.51%

Central

Garden

&

Pet

Co

-

A

Shares

(d)

23,520‌

$

842‌

Cosmetics

&

Personal

Care

-

0.45%

Beauty

Health

Co/The

(d)

82,100‌

747‌

Distribution

&

Wholesale

-

2.41%

Core

&

Main

Inc

(d)

44,400‌

858‌

Titan

Machinery

Inc

(d)

26,200‌

1,041‌

WESCO

International

Inc

(d)

16,600‌

2,078‌

$

3,977‌

Diversified

Financial

Services

-

5.06%

Encore

Capital

Group

Inc

(d)

31,600‌

1,515‌

Flywire

Corp

(d)

34,900‌

854‌

Focus

Financial

Partners

Inc

(d)

41,400‌

1,543‌

Janus

Henderson

Group

PLC

23,200‌

546‌

Lazard

Ltd

15,700‌

544‌

Moelis

&

Co

11,100‌

426‌

Piper

Sandler

Cos

8,783‌

1,143‌

Stifel

Financial

Corp

20,300‌

1,185‌

StoneX

Group

Inc

(d)

6,453‌

615‌

$

8,371‌

Electric

-

2.19%

Brookfield

Renewable

Corp

44,700‌

1,231‌

Portland

General

Electric

Co

48,600‌

2,381‌

$

3,612‌

Electrical

Components

&

Equipment

-

0.87%

EnerSys

19,400‌

1,432‌

Electronics

-

4.11%

Advanced

Energy

Industries

Inc

20,800‌

1,784‌

Atkore

Inc

(d)

16,700‌

1,894‌

Mirion

Technologies

Inc

(d)

64,500‌

426‌

Mirion

Technologies

Inc

-

Warrants

(d)

45,150‌

51‌

TD

SYNNEX

Corp

13,600‌

1,288‌

Vishay

Intertechnology

Inc

62,400‌

1,346‌

$

6,789‌

Energy

-

Alternate

Sources

-

0.47%

Array

Technologies

Inc

(d)

40,500‌

783‌

Engineering

&

Construction

-

2.15%

Dycom

Industries

Inc

(d)

24,630‌

2,305‌

MYR

Group

Inc

(d)

13,500‌

1,243‌

$

3,548‌

Entertainment

-

2.50%

Caesars

Entertainment

Inc

(d)

27,700‌

1,152‌

Golden

Entertainment

Inc

(d)

42,100‌

1,575‌

Vail

Resorts

Inc

5,900‌

1,406‌

$

4,133‌

Food

-

1.27%

Performance

Food

Group

Co

(d)

35,918‌

2,097‌

Gas

-

1.12%

Southwest

Gas

Holdings

Inc

29,800‌

1,844‌

Hand

&

Machine

Tools

-

0.64%

Regal

Rexnord

Corp

8,800‌

1,056‌

Healthcare

-

Products

-

3.54%

Adaptive

Biotechnologies

Corp

(d)

39,700‌

304‌

Castle

Biosciences

Inc

(d)

47,100‌

1,109‌

Exact

Sciences

Corp

(d)

13,900‌

688‌

Natera

Inc

(d)

54,599‌

2,193‌

Nevro

Corp

(d)

19,400‌

768‌

STAAR

Surgical

Co

(d)

16,400‌

796‌

$

5,858‌

Healthcare

-

Services

-

3.82%

Addus

HomeCare

Corp

(d)

17,600‌

1,751‌

Amedisys

Inc

(d)

16,400‌

1,370‌

Aveanna

Healthcare

Holdings

Inc

(d)

93,400‌

73‌

LifeStance

Health

Group

Inc

(d)

126,600‌

625‌

Signify

Health

Inc

(d)

45,200‌

1,296‌

Syneos

Health

Inc

(d)

29,100‌

1,067‌

Teladoc

Health

Inc

(d)

5,900‌

140‌

$

6,322‌

Schedule

of

Investments

SmallCap

Account

December

31,

2022

See

accompanying

notes.

252

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Holding

Companies

-

Diversified

-

0.00%

Cazoo

Group

Ltd

-

Warrants

(d)

21,550‌

$

—‌

Home

Builders

-

1.32%

Taylor

Morrison

Home

Corp

(d)

72,100‌

2,188‌

Insurance

-

2.35%

CNO

Financial

Group

Inc

40,100‌

916‌

Hanover

Insurance

Group

Inc

/The

13,435‌

1,816‌

Primerica

Inc

8,100‌

1,149‌

$

3,881‌

Internet

-

0.09%

Lulu's

Fashion

Lounge

Holdings

Inc

(d),(e)

57,200‌

144‌

Iron

&

Steel

-

1

.17%

Commercial

Metals

Co

40,200‌

1,942‌

Leisure

Products

&

Services

-

0.98%

Life

Time

Group

Holdings

Inc

(d)

110,400‌

1,320‌

Lindblad

Expeditions

Holdings

Inc

(d)

38,700‌

298‌

$

1,618‌

Lodging

-

0.16%

Sonder

Holdings

Inc

(d)

207,000‌

257‌

Machinery

-

Diversified

-

1.76%

Chart

Industries

Inc

(d)

18,700‌

2,155‌

Zurn

Elkay

Water

Solutions

Corp

35,700‌

755‌

$

2,910‌

Media

-

0.96%

World

Wrestling

Entertainment

Inc

23,100‌

1,583‌

Mining

-

0.53%

Alcoa

Corp

11,620‌

529‌

Piedmont

Lithium

Inc

(d)

7,800‌

343‌

$

872‌

Miscellaneous

Manufacturers

-

0.73%

Hillenbrand

Inc

28,300‌

1,208‌

Oil

&

Gas

-

3.63%

California

Resources

Corp

50,000‌

2,176‌

Gulfport

Energy

Corp

(d)

14,500‌

1,068‌

PDC

Energy

Inc

34,000‌

2,158‌

Pioneer

Natural

Resources

Co

2,653‌

606‌

$

6,008‌

Oil

&

Gas

Services

-

2.34%

ChampionX

Corp

89,200‌

2,586‌

NexTier

Oilfield

Solutions

Inc

(d)

138,700‌

1,282‌

$

3,868‌

Packaging

&

Containers

-

0.66%

Graphic

Packaging

Holding

Co

48,800‌

1,086‌

Pharmaceuticals

-

1.43%

Collegium

Pharmaceutical

Inc

(d)

48,800‌

1,132‌

Dexcom

Inc

(d)

8,400‌

951‌

PMV

Pharmaceuticals

Inc

(d)

32,400‌

282‌

$

2,365‌

REITs

-

6.46%

Agree

Realty

Corp

35,900‌

2,546‌

Cousins

Properties

Inc

57,201‌

1,447‌

First

Industrial

Realty

Trust

Inc

45,400‌

2,191‌

Ladder

Capital

Corp

73,300‌

736‌

Pebblebrook

Hotel

Trust

129,820‌

1,738‌

Rexford

Industrial

Realty

Inc

37,000‌

2,022‌

$

10,680‌

Retail

-

5.68%

BJ's

Wholesale

Club

Holdings

Inc

(d)

32,200‌

2,130‌

Bloomin

'

Brands

Inc

53,100‌

1,068‌

Caleres

Inc

80,500‌

1,794‌

Petco

Health

&

Wellness

Co

Inc

(d)

51,150‌

485‌

Portillo's

Inc

(d)

42,000‌

686‌

Rush

Enterprises

Inc

-

Class

A

30,300‌

1,584‌

Sally

Beauty

Holdings

Inc

(d)

67,100‌

840‌

World

Fuel

Services

Corp

29,100‌

795‌

$

9,382‌

Savings

&

Loans

-

0.55%

Provident

Financial

Services

Inc

42,200‌

901‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Semiconductors

-

2.62%

Allegro

MicroSystems

Inc

(d)

70,100‌

$

2,104‌

Entegris

Inc

16,200‌

1,063‌

MKS

Instruments

Inc

4,140‌

351‌

SiTime

Corp

(d)

8,000‌

813‌

$

4,331‌

Software

-

6.21%

Aspen

Technology

Inc

(d)

3,344‌

687‌

Bentley

Systems

Inc

9,400‌

347‌

Concentrix

Corp

13,600‌

1,811‌

DigitalOcean

Holdings

Inc

(d)

27,300‌

695‌

DoubleVerify

Holdings

Inc

(d)

28,856‌

634‌

Doximity

Inc

(d)

17,700‌

594‌

Jamf

Holding

Corp

(d)

27,500‌

586‌

Manhattan

Associates

Inc

(d)

15,400‌

1,870‌

Privia

Health

Group

Inc

(d)

65,300‌

1,483‌

Sophia

Genetics

SA

(d)

24,901‌

51‌

Sprout

Social

Inc

(d)

26,700‌

1,507‌

$

10,265‌

Telecommunications

-

0.42%

Credo

Technology

Group

Holding

Ltd

(d)

52,175‌

694‌

Transportation

-

1.33%

Atlas

Air

Worldwide

Holdings

Inc

(d)

10,775‌

1,086‌

Hub

Group

Inc

(d)

14,000‌

1,113‌

$

2,199‌

TOTAL

COMMON

STOCKS

$

164,447‌

Total

Investments

$

165,217‌

Other

Assets

and

Liabilities

-  0.04%

69‌

TOTAL

NET

ASSETS

-

100.00%

$

165,286‌

(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

$607

or

0.37%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

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,

the

value

of

these

securities

totaled

$593

or

0.36%

of

net

assets.

Portfolio

Summary  (unaudited)

Sector

Percent

Financial

24.68‌%

Consumer,

Non-cyclical

20.83‌%

Industrial

15.07‌%

Consumer,

Cyclical

14.07‌%

Technology

11.63‌%

Energy

6.44‌%

Utilities

3.31‌%

Basic

Materials

1.99‌%

Communications

1.47‌%

Money

Market

Funds

0.47‌%

Diversified

0.00‌%

Other

Assets

and

Liabilities

0.04‌%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

SmallCap

Account

December

31,

2022

See

accompanying

notes.

253

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

774‌

$

611‌

$

163‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

7,998‌

91,632‌

99,630‌

—‌

$

7,998‌

$

92,406‌

$

100,241‌

$

163‌

Income

(a)

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

1‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

29‌

—‌

—‌

—‌

$

30‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

U.S.

LargeCap

Buffer

January

Account

December

31,

2022

See

accompanying

notes.

254

INVESTMENT

COMPANIES

-

183

.49

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

85

.45

%

iShares

Core

S&P

500

ETF

33,589‌

$

12,905‌

SPDR

Portfolio

S&P

500

ETF

74,596‌

3,355‌

SPDR

S&P

500

ETF

Trust

6,748‌

2,581‌

Vanguard

S&P

500

ETF

11,016‌

3,871‌

$

22,712‌

Money

Market

Funds

-

98

.04

%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(a),(b)

26,061,246‌

26,061‌

TOTAL

INVESTMENT

COMPANIES

$

48,773‌

TOTAL

PURCHASED

OPTIONS

-

18.94%

$

5,035‌

Total

Investments

$

53,808‌

Other

Assets

and

Liabilities

-  (102.43)%

(

27,227‌

)

TOTAL

NET

ASSETS

-

100.00%

$

26,581‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary  (unaudited)

Sector

Percent

Money

Market

Funds

98

.04‌

%

Investment

Companies

85

.45‌

%

Purchased

Options

18

.94‌

%

Other

Assets

and

Liabilities

(

102

.43‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

28,

2022

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

26,061‌

$

—‌

$

26,061‌

$

—‌

$

26,061‌

$

–‌

$

26,061‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

6‌

$

—‌

$

—‌

$

—‌

$

6‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a)

N/A

83‌

$

8‌

$

3

.84‌

01/02/2024

$

3,108‌

$

3,109‌

$

1‌

Put

-

S&P

500

Mini

Index

(a)

N/A

682‌

68‌

$

383

.95‌

01/02/2024

1,992‌

1,926‌

(

66‌

)

Total

$

5,100‌

$

5,035‌

$

(

65‌

)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a)

N/A

193‌

$

19‌

$

422

.35‌

01/02/2024

$

(

424‌

)

$

(

415‌

)

$

9‌

Put

-

S&P

500

Mini

Index

(a)

N/A

682‌

68‌

$

345

.56‌

01/02/2024

(

1,172‌

)

(

1,158‌

)

14‌

Total

$

(

1,596‌

)

$

(

1,573‌

)

$

23‌

Amounts

in

thousands

except

contracts/shares.

(a)

FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Schedule

of

Investments

U.S.

LargeCap

Buffer

July

Account

December

31,

2022

See

accompanying

notes.

255

INVESTMENT

COMPANIES

-

87.38%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

87.38%

iShares

Core

S&P

500

ETF

(a)

33,930‌

$

13,036‌

SPDR

Portfolio

S&P

500

ETF

(a)

75,466‌

3,395‌

SPDR

S&P

500

ETF

Trust

(a)

6,796‌

2,599‌

Vanguard

S&P

500

ETF

(a)

11,114‌

3,905‌

$

22,935‌

Money

Market

Funds

-

0.00%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(b),(c)

1,286‌

1‌

TOTAL

INVESTMENT

COMPANIES

$

22,936‌

TOTAL

PURCHASED

OPTIONS

-

16.56%

$

4,346‌

Total

Investments

$

27,282‌

Other

Assets

and

Liabilities

-  (3.94)%

(1,035‌)

TOTAL

NET

ASSETS

-

100.00%

$

26,247‌

(a)

Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

options

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$9,554

or

36.40%

of

net

assets.

(b)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(c)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary  (unaudited)

Sector

Percent

Investment

Companies

87.38‌%

Purchased

Options

16.56‌%

Money

Market

Funds

0.00‌%

Other

Assets

and

Liabilities

(3.94‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

609‌

$

608‌

$

1‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

—‌

18,771‌

18,771‌

—‌

$

—‌

$

19,380‌

$

19,379‌

$

1‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

3‌

—‌

—‌

—‌

$

3‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a)

N/A

81‌

$

8‌

$

3.79‌

07/03/2023

$

3,089‌

$

3,055‌

$

(34‌)

Put

-

S&P

500

Mini

Index

(a)

N/A

684‌

68‌

$

378.54‌

07/03/2023

2,033‌

1,291‌

(742‌)

Total

$

5,122‌

$

4,346‌

$

(776‌)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a)

N/A

227‌

$

23‌

$

416.39‌

07/03/2023

$

(522‌)

$

(255‌)

$

267‌

Put

-

S&P

500

Mini

Index

(a)

N/A

684‌

68‌

$

340.69‌

07/03/2023

(1,237‌)

(644‌)

593‌

Total

$

(1,759‌)

$

(899‌)

$

860‌

Amounts

in

thousands

except

contracts/shares.

(a)

FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Schedule

of

Investments

U.S.

LargeCap

Buffer

October

Account

December

31,

2022

See

accompanying

notes.

256

INVESTMENT

COMPANIES

-

87.59%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

87.59%

iShares

Core

S&P

500

ETF

(a)

23,316‌

$

8,958‌

SPDR

Portfolio

S&P

500

ETF

51,784‌

2,329‌

SPDR

S&P

500

ETF

Trust

4,659‌

1,782‌

Vanguard

S&P

500

ETF

7,622‌

2,678‌

$

15,747‌

Money

Market

Funds

-

0.00%

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

(b),(c)

100‌

—‌

TOTAL

INVESTMENT

COMPANIES

$

15,747‌

TOTAL

PURCHASED

OPTIONS

-

17.08%

$

3,071‌

Total

Investments

$

18,818‌

Other

Assets

and

Liabilities

-  (4.67)%

(840‌)

TOTAL

NET

ASSETS

-

100.00%

$

17,978‌

(a)

Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

options

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$6,647

or

36.97%

of

net

assets.

(b)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(c)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary  (unaudited)

Sector

Percent

Investment

Companies

87.59‌%

Purchased

Options

17.08‌%

Money

Market

Funds

0.00‌%

Other

Assets

and

Liabilities

(4.67‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

December

31,

2021

Purchases

Sales

December

31,

2022

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

209‌

$

209‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09%

—‌

21,059‌

21,059‌

—‌

$

—‌

$

21,268‌

$

21,268‌

$

—‌

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

R-6

4.15%

$

—‌

$

—‌

$

—‌

$

—‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

4.09

%

7‌

—‌

—‌

—‌

$

7‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a)

N/A

60‌

$

6‌

$

3.59‌

10/02/2023

$

2,172‌

$

2,257‌

$

85‌

Put

-

S&P

500

Mini

Index

(a)

N/A

476‌

48‌

$

358.56‌

10/02/2023

1,341‌

814‌

(527‌)

Total

$

3,513‌

$

3,071‌

$

(442‌)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a)

N/A

120‌

$

12‌

$

394.42‌

10/02/2023

$

(333‌)

$

(342‌)

$

(9‌)

Put

-

S&P

500

Mini

Index

(a)

N/A

476‌

48‌

$

322.70‌

10/02/2023

(835‌)

(468‌)

367‌

Total

$

(1,168‌)

$

(810‌)

$

358‌

Amounts

in

thousands

except

contracts/shares.

(a)

FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Glossary

to

the

Schedule

of

Investments

December

31,

2022

See

accompanying

notes.

257

Currency

Abbreviations

USD/$

United

States

Dollar

See

accompanying

notes.

259

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

BLUE

CHIP

ACCOUNT

Class

3

shares

2022

$

12

.81‌

(

$

0

.03‌

)

(

$

3

.97‌

)

(

$

4

.00‌

)

(

$

0

.01‌

)

(

$

0

.01‌

)

$

8

.80‌

2021

10

.34‌

(

0

.08‌

)

2

.64‌

2

.56‌

(

0

.09‌

)

(

0

.09‌

)

12

.81‌

2020(d)

10

.00‌

–‌

0

.34‌

0

.34‌

–‌

–‌

10

.34‌

See

accompanying

notes.

260

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

31

.20‌

)

%

$

8,679‌

1

.05‌

%

(c)

(

0

.33‌

)

%

91

.9‌

%

24

.72‌

13,515‌

1

.05‌

(c)

(

0

.63‌

)

12

.5‌

3

.40‌

(e)

5,170‌

1

.05‌

(c)

,(f)

(

0

.66‌

)

(f)

54

.6‌

(f)

(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)

Reflects

Manager's

contractual

expense

limit.

(d)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

See

accompanying

notes.

261

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

10

.76‌

$

0

.21‌

(

$

1

.62‌

)

(

$

1

.41‌

)

(

$

0

.21‌

)

(

$

0

.01‌

)

(

$

0

.22‌

)

$

9

.13‌

2021

11

.21‌

0

.17‌

(

0

.37‌

)

(

0

.20‌

)

(

0

.22‌

)

(

0

.03‌

)

(

0

.25‌

)

10

.76‌

2020

10

.72‌

0

.23‌

0

.55‌

0

.78‌

(

0

.29‌

)

–‌

(

0

.29‌

)

11

.21‌

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

See

accompanying

notes.

262

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

13

.16‌

)

%

$

2,290,071‌

0

.14‌

%

2

.19‌

%

102

.0‌

%

(

1

.83‌

)

2,900,608‌

0

.14‌

1

.58‌

130

.5‌

7

.29‌

2,735,259‌

0

.14‌

2

.04‌

104

.0‌

8

.47‌

2,539,460‌

0

.15‌

(c)

2

.60‌

93

.6‌

(

0

.19‌

)

2,213,355‌

0

.15‌

(c)

2

.52‌

123

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

263

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

CORE

PLUS

BOND

ACCOUNT

Class

1

shares

2022

$

11

.48‌

$

0

.28‌

(

$

1

.90‌

)

(

$

1

.62‌

)

(

$

0

.32‌

)

(

$

0

.12‌

)

(

$

0

.44‌

)

$

9

.42‌

2021

12

.15‌

0

.25‌

(

0

.30‌

)

(

0

.05‌

)

(

0

.32‌

)

(

0

.30‌

)

(

0

.62‌

)

11

.48‌

2020

11

.50‌

0

.23‌

0

.86‌

1

.09‌

(

0

.44‌

)

–‌

(

0

.44‌

)

12

.15‌

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

See

accompanying

notes.

264

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

.13‌

)

%

$

187,023‌

0

.49‌

%

2

.76‌

%

146

.8‌

%

(

0

.45‌

)

236,382‌

0

.47‌

2

.12‌

150

.8‌

9

.55‌

255,956‌

0

.47‌

1

.92‌

210

.3‌

9

.81‌

252,874‌

0

.47‌

2

.99‌

152

.4‌

(

1

.41‌

)

280,760‌

0

.47‌

3

.27‌

127

.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.

See

accompanying

notes.

265

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

ACCOUNT

Class

1

shares

2022

$

18.11‌

$

0.28‌

(

$

2.96‌)

(

$

2.68‌)

(

$

0.40‌)

(

$

1.46‌)

(

$

1.86‌)

$

13.57‌

2021

17.58‌

0.36‌

1.55‌

1.91‌

(

0.40‌)

(

0.98‌)

(

1.38‌)

18.11‌

2020

16.52‌

0.36‌

1.70‌

2.06‌

(

0.40‌)

(

0.60‌)

(

1.00‌)

17.58‌

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

Class

2

shares

2022

18.15‌

0.24‌

(

2.97‌)

(

2.73‌)

(

0.35‌)

(

1.46‌)

(

1.81‌)

13.61‌

2021

17.61‌

0.31‌

1.57‌

1.88‌

(

0.36‌)

(

0.98‌)

(

1.34‌)

18.15‌

2020

16.55‌

0.32‌

1.70‌

2.02‌

(

0.36‌)

(

0.60‌)

(

0.96‌)

17.61‌

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

Class

3

shares

2022

18.04‌

0.26‌

(

3.00‌)

(

2.74‌)

(

0.39‌)

(

1.46‌)

(

1.85‌)

13.45‌

2021

17.58‌

0.68‌

1.16‌

1.84‌

(

0.40‌)

(

0.98‌)

(

1.38‌)

18.04‌

2020(e)

17.32‌

0.05‌

0.21‌

0.26‌

–‌

–‌

–‌

17.58‌

See

accompanying

notes.

266

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(14.85‌)

%

$

32,564‌

0.05‌

%

–‌

%

1.79‌

%

19.5‌

%

11.06‌

41,982‌

0.05‌

–‌

2.00‌

14.3‌

12.96‌

40,515‌

0.05‌

–‌

2.18‌

23.6‌

18.43‌

40,694‌

0.05‌

–‌

2.25‌

16.9‌

(3.14‌)

36,763‌

0.05‌

–‌

1.95‌

15.7‌

(15.10‌)

715,788‌

0.30‌

–‌

1.52‌

19.5‌

10.83‌

962,935‌

0.30‌

–‌

1.72‌

14.3‌

12.63‌

979,751‌

0.30‌

–‌

1.95‌

23.6‌

18.23‌

988,264‌

0.30‌

(c)

0.30‌

(d)

1.96‌

16.9‌

(3.40‌)

968,449‌

0.30‌

(c)

0.30‌

(d)

1.69‌

15.7‌

(15.24‌)

563‌

0.45‌

–‌

1.72‌

19.5‌

10.65‌

327‌

0.45‌

–‌

3.79‌

14.3‌

1

.50‌

(f)

10‌

0.45‌

(g)

–‌

4.31‌

(g)

23.6‌

(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)

Reflects

Manager's

voluntary

expense

limit.

(d)

Excludes

expense

reimbursement

from

Manager.

(e)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(f)

Total

return

amounts

have

not

been

annualized.

(g)

Computed

on

an

annualized

basis.

See

accompanying

notes.

267

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

14.43‌

$

0.17‌

(

$

2.27‌)

(

$

2.10‌)

(

$

0.35‌)

(

$

0.98‌)

(

$

1.33‌)

$

11.00‌

2021

13.65‌

0.32‌

1.03‌

1.35‌

(

0.25‌)

(

0.32‌)

(

0.57‌)

14.43‌

2020

12.91‌

0.24‌

1.26‌

1.50‌

(

0.25‌)

(

0.51‌)

(

0.76‌)

13.65‌

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

Class

3

shares

2022

14.38‌

0.16‌

(

2.28‌)

(

2.12‌)

(

0.33‌)

(

0.98‌)

(

1.31‌)

10

.95‌

2021

13.65‌

0.31‌

1.02‌

1.33‌

(

0.28‌)

(

0.32‌)

(

0.60‌)

14.38‌

2020(d)

13.46‌

0.04‌

0.15‌

0.19‌

–‌

–‌

–‌

13.65‌

See

accompanying

notes.

268

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(14.63‌)

%

$

141,384‌

0.31‌

%

(c)

1.36‌

%

21.0‌

%

9.94‌

184,060‌

0.31‌

(c)

2.24‌

18.7‌

12.03‌

185,139‌

0.31‌

(c)

1.84‌

25.0‌

17.48‌

176,235‌

0.31‌

(c)

1

.90‌

21.3‌

(3.20‌)

162,166‌

0.31‌

(c)

1.59‌

16.2‌

(14.79‌)

9‌

0.46‌

1.28‌

21.0‌

9.81‌

11‌

0.46‌

2.17‌

18.7‌

1.41‌

(e)

10‌

0.46‌

(f)

4.31‌

(f)

25.0‌

(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)

Reflects

Manager's

contractual

expense

limit.

(d)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

See

accompanying

notes.

269

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

VOLATILITY

CONTROL

ACCOUNT

Class

2

shares

2022

$

13.27‌

$

0.16‌

(

$

1.99‌)

(

$

1.83‌)

(

$

0.20‌)

(

$

0.71‌)

(

$

0.91‌)

$

10.53‌

2021

12.40‌

0.22‌

1.02‌

1.24‌

(

0.17‌)

(

0.20‌)

(

0.37‌)

13.27‌

2020

11.71‌

0.20‌

0.81‌

1.01‌

(

0.18‌)

(

0.14‌)

(

0.32‌)

12.40‌

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

Class

3

shares

2022

13.23‌

0.14‌

(

1.97‌)

(

1.83‌)

(

0.18‌)

(

0.71‌)

(

0.89‌)

10.51‌

2021

12.40‌

0.19‌

1.03‌

1.22‌

(

0.19‌)

(

0.20‌)

(

0.39‌)

13.23‌

2020(e)

12.22‌

0.04‌

0.14‌

0.18‌

–‌

–‌

–‌

12.40‌

See

accompanying

notes.

270

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(13.79‌)

%

$

207,220‌

0.38‌

%

1.40‌

%

104.9‌

%

10.08‌

229,787‌

0.38‌

1.67‌

47.6‌

8.82‌

184,469‌

0.38‌

(c)

1.73‌

83.5‌

15.47‌

145,371‌

0.38‌

(c)

2.47‌

33.1‌

(3.71‌)

(d)

66,983‌

0.38‌

(c)

1.90‌

99.6‌

(13.84‌)

10‌

0.53‌

1.25‌

104.9‌

9.94‌

11‌

0.53‌

1.48‌

47.6‌

1.47‌

(f)

10‌

0.53‌

(g)

5.62‌

(g)

83.5‌

(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)

Reflects

Manager's

contractual

expense

limit.

(d)

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.

(e)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(f)

Total

return

amounts

have

not

been

annualized.

(g)

Computed

on

an

annualized

basis.

See

accompanying

notes.

271

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

ACCOUNT

Class

2

shares

2022

$

21.68‌

$

0.27‌

(

$

3.66‌)

(

$

3.39‌)

(

$

0.40‌)

(

$

1.69‌)

(

$

2.09‌)

$

16.20‌

2021

20.15‌

0.37‌

2.56‌

2.93‌

(

0.38‌)

(

1.02‌)

(

1.40‌)

21.68‌

2020

18.69‌

0.35‌

2.12‌

2.47‌

(

0.37‌)

(

0.64‌)

(

1.01‌)

20.15‌

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

Class

3

shares

2022

21.60‌

0.23‌

(

3.64‌)

(

3.41‌)

(

0.43‌)

(

1.69‌)

(

2.12‌)

16.07‌

2021

20.15‌

0.42‌

2.48‌

2.90‌

(

0.43‌)

(

1.02‌)

(

1.45‌)

21.60‌

2020(f)

19.80‌

0.07‌

0.28‌

0.35‌

–‌

–‌

–‌

20.15‌

See

accompanying

notes.

272

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(15.70‌)

%

$

3,045,729‌

0.30‌

%

–‌

%

1.47‌

%

20.1‌

%

14.79‌

3,974,179‌

0.30‌

–‌

1.74‌

14.7‌

13.76‌

3,853,082‌

0.30‌

–‌

1.89‌

23.0‌

21.20‌

3,772,145‌

0.30‌

(c)

0.30‌

(d)

1.89‌

16.0‌

(4.51‌)

(e)

3,488,312‌

0.30‌

(c)

0.30‌

(d)

1.69‌

15.5‌

(15.84‌)

208‌

0.45‌

–‌

1.27‌

20.1‌

14.63‌

277‌

0.45‌

–‌

2.00‌

14.7‌

1.77‌

(g)

10‌

0.45‌

(h)

–‌

5.91‌

(h)

23.0‌

(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)

Reflects

Manager's

voluntary

expense

limit.

(d)

Excludes

expense

reimbursement

from

Manager.

(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)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(g)

Total

return

amounts

have

not

been

annualized.

(h)

Computed

on

an

annualized

basis.

See

accompanying

notes.

273

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

15.66‌

$

0.17‌

(

$

2.54‌)

(

$

2.37‌)

(

$

0.40‌)

(

$

1.14‌)

(

$

1.54‌)

$

11.75‌

2021

14.33‌

0.36‌

1.58‌

1.94‌

(

0.24‌)

(

0.37‌)

(

0.61‌)

15.66‌

2020

13.53‌

0.23‌

1.46‌

1.69‌

(

0.25‌)

(

0.64‌)

(

0.89‌)

14.33‌

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

Class

3

shares

2022

15.59‌

0.15‌

(

2.51‌)

(

2.36‌)

(

0.39‌)

(

1.14‌)

(

1.53‌)

11.70‌

2021

14.33‌

0.35‌

1.56‌

1.91‌

(

0.28‌)

(

0.37‌)

(

0.65‌)

15.59‌

2020(d)

14.09‌

0.05‌

0.19‌

0.24‌

–‌

–‌

–‌

14.33‌

See

accompanying

notes.

274

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(15.12‌)

%

$

292,960‌

0.30‌

%

1.25‌

%

19.9‌

%

13.70‌

388,912‌

0.30‌

2.39‌

17.4‌

13.06‌

378,238‌

0.30‌

(c)

1.74‌

22.3‌

20.18‌

353,687‌

0.31‌

(c)

1.80‌

18.8‌

(4.07‌)

325,228‌

0.30‌

(c)

1.53‌

16.3‌

(15

.17‌)

10‌

0.45‌

1.17‌

19.9‌

13.44‌

12‌

0.45‌

2.31‌

17.4‌

1.70‌

(e)

10‌

0.45‌

(f)

5.91‌

(f)

22.3‌

(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)

Reflects

Manager's

contractual

expense

limit.

(d)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

See

accompanying

notes.

275

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

VOLATILITY

CONTROL

ACCOUNT

Class

2

shares

2022

$

14.07‌

$

0.17‌

(

$

2.12‌)

(

$

1.95‌)

(

$

0.20‌)

(

$

0.85‌)

(

$

1.05‌)

$

11.07‌

2021

12.68‌

0.23‌

1.52‌

1.75‌

(

0.16‌)

(

0.20‌)

(

0.36‌)

14.07‌

2020

12.00‌

0.19‌

0.86‌

1.05‌

(

0.18‌)

(

0.19‌)

(

0.37‌)

12.68‌

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

Class

3

shares

2022

14.03‌

0.14‌

(

2.10‌)

(

1.96‌)

(

0.18‌)

(

0.85‌)

(

1.03‌)

11.04‌

2021

12.68‌

0.20‌

1.53‌

1.73‌

(

0.18‌)

(

0.20‌)

(

0.38‌)

14.03‌

2020(d)

12.47‌

0.05‌

0.16‌

0.21‌

–‌

–‌

–‌

12.68‌

See

accompanying

notes.

276

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(13.82‌)

%

$

1,196,821‌

0.37‌

%

1.36‌

%

101.8‌

%

13.89‌

1,277,128‌

0.37‌

1.69‌

57.4‌

8.98‌

995,575‌

0.37‌

1.63‌

85.9‌

17.57‌

765,417‌

0.37‌

(c)

2.32‌

36.2‌

(4.60‌)

384,706‌

0.37‌

(c)

1.96‌

103.6‌

(

13.97‌)

10‌

0.52‌

1.18‌

101.8‌

13.74‌

12‌

0.52‌

1.46‌

57.4‌

1.68‌

(e)

10‌

0.52‌

(f)

7.20‌

(f)

85.9‌

(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)

Reflects

Manager's

contractual

expense

limit.

(d)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

See

accompanying

notes.

277

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

INCOME

ACCOUNT

Class

2

shares

2022

$

15.21‌

$

0.21‌

(

$

2.41‌)

(

$

2.20‌)

(

$

0.29‌)

(

$

0.72‌)

(

$

1.01‌)

$

12.00‌

2021

14.82‌

0.26‌

0.77‌

1.03‌

(

0.29‌)

(

0.35‌)

(

0.64‌)

15.21‌

2020

13.82‌

0.30‌

1.23‌

1.53‌

(

0.28‌)

(

0.25‌)

(

0.53‌)

14.82‌

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

Class

3

shares

2022

15.15‌

(

0.01‌)

(

2.21‌)

(

2.22‌)

–‌

(

0.72‌)

(

0.72‌)

12.21‌

2021

14.82‌

0.58‌

0.42‌

1.00‌

(

0.32‌)

(

0.35‌)

(

0.67‌)

15.15‌

2020(e)

14.65‌

0.02‌

0.15‌

0.17‌

–‌

–‌

–‌

14.82‌

See

accompanying

notes.

278

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(14.54‌)

%

$

254,300‌

0.30‌

%

–‌

%

1.58‌

%

23.5‌

%

6.96‌

325,983‌

0.30‌

(c)

0.30‌

(d)

1.75‌

24.8‌

11.27‌

323,525‌

0.30‌

(c)

0.30‌

(d)

2.10‌

31.2‌

15.16‌

279,888‌

0.31‌

(c)

0.31‌

(d)

2.16‌

25.6‌

(2.38‌)

241,331‌

0.30‌

(c)

0.30‌

(d)

1.72‌

22.8‌

(14.73‌)

54‌

0.45‌

–‌

(0.04‌)

23.5‌

6.78‌

781‌

0.45‌

–‌

3.83‌

24.8‌

1.16‌

(f)

10‌

0.45‌

(g)

–‌

2.69‌

(g)

31.2‌

(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)

Reflects

Manager's

voluntary

expense

limit.

(d)

Excludes

expense

reimbursement

from

Manager.

(e)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(f)

Total

return

amounts

have

not

been

annualized.

(g)

Computed

on

an

annualized

basis.

See

accompanying

notes.

279

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

19

.17‌

$

0

.31‌

(

$

4

.21‌

)

(

$

3

.90‌

)

(

$

0

.42‌

)

(

$

1

.49‌

)

(

$

1

.91‌

)

$

13

.36‌

2021

17

.77‌

0

.28‌

1

.46‌

1

.74‌

(

0

.25‌

)

(

0

.09‌

)

(

0

.34‌

)

19

.17‌

2020

15

.71‌

0

.18‌

2

.29‌

2

.47‌

(

0

.41‌

)

–‌

(

0

.41‌

)

17

.77‌

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

See

accompanying

notes.

280

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

20

.00‌

)

%

$

236,721‌

0

.92‌

%

2

.02‌

%

46

.9‌

%

9

.75‌

299,426‌

0

.90‌

1

.49‌

36

.6‌

16

.16‌

291,726‌

0

.92‌

1

.19‌

47

.1‌

22

.69‌

266,768‌

0

.93‌

1

.86‌

43

.7‌

(

17

.54‌

)

233,612‌

0

.91‌

1

.91‌

59

.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.

See

accompanying

notes.

281

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

34.25‌

$

0.59‌

(

$

4.25‌)

(

$

3

.66‌)

(

$

0.60‌)

(

$

3.45‌)

(

$

4.05‌)

$

26.54‌

2021

28.54‌

0.55‌

5.82‌

6.37‌

(

0.64‌)

(

0.02‌)

(

0.66‌)

34.25‌

2020

28.19‌

0.55‌

1

.08‌

1.63‌

(

0.52‌)

(

0.76‌)

(

1.28‌)

28.54‌

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

Class

2

shares

2022

33.87‌

0.51‌

(

4.20‌)

(

3.69‌)

(

0.54‌)

(

3.45‌)

(

3.99‌)

26.19‌

2021

28.26‌

0.47‌

5.75‌

6.22‌

(

0.59‌)

(

0.02‌)

(

0.61‌)

33.87‌

2020

27.93‌

0.48‌

1.06‌

1.54‌

(

0.45‌)

(

0.76‌)

(

1.21‌)

28.26‌

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

Class

3

shares

2022

34.10‌

0.47‌

(

4.23‌)

(

3.76‌)

(

0.59‌)

(

3.45‌)

(

4.04‌)

26.30‌

2021

28.53‌

0.47‌

5.76‌

6.23‌

(

0.64‌)

(

0.02‌)

(

0.66‌)

34.10‌

2020(c)

27.94‌

0.03‌

0.56‌

0.59‌

–‌

–‌

–‌

28.53‌

See

accompanying

notes.

282

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(10.50‌)

%

$

625,764‌

0.48‌

%

1.99‌

%

19.6‌

%

22.47‌

701,625‌

0.47‌

1.73‌

9.6‌

6.43‌

755,882‌

0.48‌

2.18‌

21.0‌

29.09‌

741,311‌

0.47‌

2.16‌

17.9‌

(5.01‌)

636,177‌

0.49‌

2.47‌

13.2‌

(10.72‌)

56,495‌

0.73‌

1.75‌

19.6‌

22.15‌

53,723‌

0.72‌

1.48‌

9.6‌

6.15‌

33,951‌

0.73‌

1.93‌

21.0‌

28.78‌

31,874‌

0.72‌

1.91‌

17.9‌

(5.24‌)

25,207‌

0.74‌

2.23‌

13.2‌

(10.86‌)

308‌

0.88‌

1.61‌

19.6‌

21.97‌

148‌

0.87‌

1.43‌

9.6‌

2.11‌

(d)

10‌

0.88‌

(e)

1.88‌

(e)

21.0‌

(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)

Period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020.

(d)

Total

return

amounts

have

not

been

annualized.

(e)

Computed

on

an

annualized

basis.

See

accompanying

notes.

283

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

GLOBAL

EMERGING

MARKETS

ACCOUNT(c)

Class

1

shares

2022

$

19

.67‌

$

0

.31‌

(

$

4

.78‌

)

(

$

4

.47‌

)

(

$

0

.26‌

)

(

$

1

.55‌

)

(

$

1

.81‌

)

$

13

.39‌

2021

19

.94‌

0

.21‌

(

0

.08‌

)

0

.13‌

(

0

.09‌

)

(

0

.31‌

)

(

0

.40‌

)

19

.67‌

2020

17

.13‌

0

.12‌

3

.10‌

3

.22‌

(

0

.41‌

)

–‌

(

0

.41‌

)

19

.94‌

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

See

accompanying

notes.

284

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

22

.66‌

)

%

$

68,015‌

1

.10‌

%

(d)

1

.98‌

%

34

.5‌

%

0

.58‌

90,815‌

1

.18‌

(d)

1

.01‌

35

.7‌

19

.23‌

93,839‌

1

.21‌

(d)

,(e)

0

.71‌

57

.6‌

17

.60‌

89,729‌

1

.20‌

(d)

2

.46‌

112

.5‌

(

21

.02‌

)

83,366‌

1

.35‌

(d)

1

.05‌

121

.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)

Effective

May

2,

2022,

International

Emerging

Markets

Account

changed

its

name

to

Global

Emerging

Markets

Account.

(d)

Reflects

Manager's

contractual

expense

limit.

(e)

Includes

0.01%

of

expenses

associated

with

the

reclaim

of

foreign

taxes

paid.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

See

accompanying

notes.

285

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

GOVERNMENT

&

HIGH

QUALITY

BOND

ACCOUNT

Class

1

shares

2022

$

9

.48‌

$

0

.12‌

(

$

1

.24‌

)

(

$

1

.12‌

)

(

$

0

.12‌

)

(

$

0

.12‌

)

$

8

.24‌

2021

9

.83‌

0

.04‌

(

0

.17‌

)

(

0

.13‌

)

(

0

.22‌

)

(

0

.22‌

)

9

.48‌

2020

9

.81‌

0

.12‌

0

.16‌

0

.28‌

(

0

.26‌

)

(

0

.26‌

)

9

.83‌

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

See

accompanying

notes.

286

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

11

.81‌

)

%

$

138,346‌

0

.50‌

%

1

.32‌

%

281

.4‌

%

(

1

.32‌

)

197,777‌

0

.50‌

0

.40‌

360

.7‌

2

.87‌

227,996‌

0

.51‌

1

.22‌

124

.6‌

6

.45‌

241,332‌

0

.51‌

2

.26‌

22

.5‌

0

.91‌

219,612‌

0

.51‌

2

.43‌

17

.4‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

See

accompanying

notes.

287

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

52

.48‌

(

$

0

.06‌

)

(

$

17

.54‌

)

(

$

17

.60‌

)

$

–‌

(

$

4

.66‌

)

(

$

4

.66‌

)

$

30

.22‌

2021

48

.46‌

(

0

.14‌

)

10

.65‌

10

.51‌

–‌

(

6

.49‌

)

(

6

.49‌

)

52

.48‌

2020

37

.64‌

(

0

.06‌

)

13

.36‌

13

.30‌

(

0

.01‌

)

(

2

.47‌

)

(

2

.48‌

)

48

.46‌

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

See

accompanying

notes.

288

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

34

.16‌

)

%

$

439,493‌

0

.69‌

%

(c)

(

0

.16‌

)

%

28

.1‌

%

21

.89‌

706,656‌

0

.66‌

(c)

(

0

.26‌

)

22

.1‌

36

.20‌

612,357‌

0

.69‌

(c)

(

0

.14‌

)

42

.2‌

34

.92‌

502,653‌

0

.71‌

(c)

0

.03‌

30

.4‌

3

.60‌

296,139‌

0

.74‌

(c)

0

.08‌

36

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

289

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

S&P

500

INDEX

ACCOUNT

Class

1

shares

2022

$

25

.53‌

$

0

.29‌

(

$

4

.92‌

)

(

$

4

.63‌

)

(

$

0

.28‌

)

(

$

2

.38‌

)

(

$

2

.66‌

)

$

18

.24‌

2021

21

.94‌

0

.27‌

5

.77‌

6

.04‌

(

0

.35‌

)

(

2

.10‌

)

(

2

.45‌

)

25

.53‌

2020

20

.19‌

0

.31‌

3

.12‌

3

.43‌

(

0

.37‌

)

(

1

.31‌

)

(

1

.68‌

)

21

.94‌

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

Class

2

shares

2022

25

.13‌

0

.23‌

(

4

.83‌

)

(

4

.60‌

)

(

0

.24‌

)

(

2

.38‌

)

(

2

.62‌

)

17

.91‌

2021

21

.65‌

0

.21‌

5

.69‌

5

.90‌

(

0

.32‌

)

(

2

.10‌

)

(

2

.42‌

)

25

.13‌

2020

19

.97‌

0

.26‌

3

.07‌

3

.33‌

(

0

.34‌

)

(

1

.31‌

)

(

1

.65‌

)

21

.65‌

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

See

accompanying

notes.

290

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

18

.33‌

)

%

$

2,516,267‌

0

.24‌

%

1

.34‌

%

9

.0‌

%

28

.33‌

3,162,615‌

0

.25‌

1

.11‌

2

.6‌

18

.08‌

2,892,842‌

0

.25‌

1

.60‌

11

.1‌

31

.10‌

2,693,344‌

0

.25‌

1

.80‌

3

.5‌

(

4

.58‌

)

2,378,088‌

0

.25‌

1

.94‌

8

.7‌

(

18

.53‌

)

42,034‌

0

.49‌

1

.10‌

9

.0‌

28

.05‌

46,634‌

0

.50‌

0

.86‌

2

.6‌

17

.77‌

27,801‌

0

.50‌

1

.35‌

11

.1‌

30

.82‌

15,834‌

0

.50‌

1

.56‌

3

.5‌

(

4

.90‌

)

7,081‌

0

.50‌

1

.77‌

8

.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.

See

accompanying

notes.

291

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

S&P

500

MANAGED

VOLATILITY

INDEX

ACCOUNT

Class

1

shares

2022

$

18

.86‌

$

0

.17‌

(

$

3

.34‌

)

(

$

3

.17‌

)

(

$

0

.17‌

)

(

$

1

.64‌

)

(

$

1

.81‌

)

$

13

.88‌

2021

16

.90‌

0

.15‌

4

.02‌

4

.17‌

(

0

.23‌

)

(

1

.98‌

)

(

2

.21‌

)

18

.86‌

2020

15

.06‌

0

.20‌

2

.24‌

2

.44‌

(

0

.25‌

)

(

0

.35‌

)

(

0

.60‌

)

16

.90‌

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

See

accompanying

notes.

292

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

16

.95‌

)

%

$

181,155‌

0

.46‌

%

1

.09‌

%

8

.3‌

%

25

.55‌

239,895‌

0

.46‌

0

.84‌

2

.6‌

16

.67‌

235,112‌

0

.46‌

1

.31‌

8

.9‌

28

.92‌

217,779‌

0

.47‌

1

.59‌

3

.8‌

(

3

.73‌

)

205,655‌

0

.46‌

1

.64‌

11

.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.

See

accompanying

notes.

293

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

74

.76‌

$

0

.11‌

(

$

17

.16‌

)

(

$

17

.05‌

)

(

$

0

.11‌

)

(

$

6

.35‌

)

(

$

6

.46‌

)

$

51

.25‌

2021

63

.69‌

–‌

15

.93‌

15

.93‌

(

0

.09‌

)

(

4

.77‌

)

(

4

.86‌

)

74

.76‌

2020

59

.93‌

0

.08‌

9

.93‌

10

.01‌

(

0

.44‌

)

(

5

.81‌

)

(

6

.25‌

)

63

.69‌

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

Class

2

shares

2022

73

.89‌

(

0

.03‌

)

(

16

.95‌

)

(

16

.98‌

)

–‌

(

6

.35‌

)

(

6

.35‌

)

50

.56‌

2021

63

.08‌

(

0

.18‌

)

15

.76‌

15

.58‌

–‌

(

4

.77‌

)

(

4

.77‌

)

73

.89‌

2020

59

.42‌

(

0

.07‌

)

9

.84‌

9

.77‌

(

0

.30‌

)

(

5

.81‌

)

(

6

.11‌

)

63

.08‌

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

See

accompanying

notes.

294

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

22

.98‌

)

%

$

554,971‌

0

.54‌

%

0

.19‌

%

15

.1‌

%

25

.53‌

711,126‌

0

.53‌

(

0

.01‌

)

17

.1‌

18

.33‌

(c)

604,094‌

0

.54‌

0

.14‌

12

.2‌

43

.10‌

(c)

587,854‌

0

.55‌

0

.72‌

10

.5‌

(

6

.55‌

)

474,365‌

0

.54‌

0

.29‌

24

.6‌

(

23

.16‌

)

32,800‌

0

.79‌

(

0

.05‌

)

15

.1‌

25

.20‌

38,773‌

0

.78‌

(

0

.26‌

)

17

.1‌

18

.07‌

25,643‌

0

.79‌

(

0

.12‌

)

12

.2‌

42

.72‌

(c)

20,808‌

0

.80‌

0

.48‌

10

.5‌

(

6

.79‌

)

(c)

15,710‌

0

.79‌

0

.04‌

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)

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.

295

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

41

.87‌

$

0

.30‌

(

$

7

.16‌

)

(

$

6

.86‌

)

(

$

0

.29‌

)

(

$

4

.36‌

)

(

$

4

.65‌

)

$

30

.36‌

2021

34

.30‌

0

.28‌

9

.13‌

9

.41‌

(

0

.33‌

)

(

1

.51‌

)

(

1

.84‌

)

41

.87‌

2020

30

.72‌

0

.31‌

5

.21‌

5

.52‌

(

0

.41‌

)

(

1

.53‌

)

(

1

.94‌

)

34

.30‌

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

Class

2

shares

2022

41

.19‌

0

.21‌

(

7

.04‌

)

(

6

.83‌

)

(

0

.22‌

)

(

4

.36‌

)

(

4

.58‌

)

29

.78‌

2021

33

.81‌

0

.18‌

8

.99‌

9

.17‌

(

0

.28‌

)

(

1

.51‌

)

(

1

.79‌

)

41

.19‌

2020

30

.32‌

0

.24‌

5

.13‌

5

.37‌

(

0

.35‌

)

(

1

.53‌

)

(

1

.88‌

)

33

.81‌

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

See

accompanying

notes.

296

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

16

.42‌

)

%

$

121,010‌

0

.63‌

%

0

.85‌

%

53

.1‌

%

27

.82‌

163,159‌

0

.63‌

0

.73‌

30

.6‌

18

.72‌

147,026‌

0

.63‌

1

.03‌

36

.5‌

32

.49‌

143,227‌

0

.64‌

1

.27‌

29

.5‌

(

3

.41‌

)

128,547‌

0

.63‌

1

.52‌

44

.9‌

(

16

.62‌

)

33,069‌

0

.88‌

0

.63‌

53

.1‌

27

.50‌

31,088‌

0

.88‌

0

.47‌

30

.6‌

18

.44‌

18,688‌

0

.88‌

0

.79‌

36

.5‌

32

.10‌

13,536‌

0

.89‌

1

.03‌

29

.5‌

(

3

.64‌

)

(c)

8,757‌

0

.88‌

1

.28‌

44

.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)

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.

297

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2010

ACCOUNT

Class

1

shares

2022

$

13

.41‌

$

0

.30‌

(

$

2

.06‌

)

(

$

1

.76‌

)

(

$

0

.34‌

)

(

$

0

.48‌

)

(

$

0

.82‌

)

$

10

.83‌

2021

13

.59‌

0

.38‌

0

.43‌

0

.81‌

(

0

.24‌

)

(

0

.75‌

)

(

0

.99‌

)

13

.41‌

2020

12

.75‌

0

.25‌

1

.17‌

1

.42‌

(

0

.33‌

)

(

0

.25‌

)

(

0

.58‌

)

13

.59‌

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

See

accompanying

notes.

298

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

13

.20‌

)

%

$

33,142‌

0

.02‌

%

2

.54‌

%

35

.3‌

%

5

.94‌

37,297‌

0

.02‌

2

.79‌

26

.4‌

11

.40‌

35,824‌

0

.02‌

1

.94‌

71

.6‌

14

.10‌

31,499‌

0

.04‌

2

.51‌

60

.8‌

(

3

.87‌

)

31,890‌

0

.02‌

2

.43‌

29

.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.

See

accompanying

notes.

299

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

15

.19‌

$

0

.30‌

(

$

2

.47‌

)

(

$

2

.17‌

)

(

$

0

.45‌

)

(

$

0

.95‌

)

(

$

1

.40‌

)

$

11

.62‌

2021

14

.99‌

0

.42‌

0

.94‌

1

.36‌

(

0

.26‌

)

(

0

.90‌

)

(

1

.16‌

)

15

.19‌

2020

13

.90‌

0

.25‌

1

.49‌

1

.74‌

(

0

.38‌

)

(

0

.27‌

)

(

0

.65‌

)

14

.99‌

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

See

accompanying

notes.

300

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

.38‌

)

%

$

151,551‌

0

.01‌

%

2

.32‌

%

25

.4‌

%

9

.17‌

196,334‌

0

.00‌

2

.72‌

23

.3‌

12

.89‌

194,167‌

0

.01‌

1

.81‌

53

.4‌

18

.12‌

190,475‌

0

.01‌

2

.47‌

52

.7‌

(

5

.40‌

)

172,173‌

0

.01‌

2

.37‌

28

.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.

See

accompanying

notes.

301

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2030

ACCOUNT

Class

1

shares

2022

$

15

.60‌

$

0

.25‌

(

$

2

.87‌

)

(

$

2

.62‌

)

(

$

0

.38‌

)

(

$

0

.90‌

)

(

$

1

.28‌

)

$

11

.70‌

2021

14

.51‌

0

.43‌

1

.41‌

1

.84‌

(

0

.21‌

)

(

0

.54‌

)

(

0

.75‌

)

15

.60‌

2020

13

.12‌

0

.23‌

1

.67‌

1

.90‌

(

0

.28‌

)

(

0

.23‌

)

(

0

.51‌

)

14

.51‌

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

See

accompanying

notes.

302

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

16

.84‌

)

%

$

227,664‌

0

.00‌

%

1

.89‌

%

25

.6‌

%

12

.79‌

262,864‌

0

.00‌

2

.78‌

26

.8‌

14

.89‌

228,291‌

0

.01‌

1

.77‌

52

.3‌

22

.01‌

182,172‌

0

.01‌

2

.47‌

35

.8‌

(

7

.06‌

)

140,617‌

0

.01‌

2

.21‌

28

.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.

See

accompanying

notes.

303

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2040

ACCOUNT

Class

1

shares

2022

$

19

.94‌

$

0

.25‌

(

$

3

.85‌

)

(

$

3

.60‌

)

(

$

0

.55‌

)

(

$

1

.20‌

)

(

$

1

.75‌

)

$

14

.59‌

2021

18

.09‌

0

.62‌

2

.13‌

2

.75‌

(

0

.25‌

)

(

0

.65‌

)

(

0

.90‌

)

19

.94‌

2020

16

.22‌

0

.29‌

2

.23‌

2

.52‌

(

0

.32‌

)

(

0

.33‌

)

(

0

.65‌

)

18

.09‌

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

See

accompanying

notes.

304

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

18

.10‌

)

%

$

118,055‌

0

.01‌

%

1

.52‌

%

25

.2‌

%

15

.29‌

134,172‌

0

.01‌

3

.18‌

19

.9‌

16

.11‌

107,137‌

0

.01‌

1

.82‌

38

.9‌

24

.74‌

85,405‌

0

.02‌

2

.36‌

28

.8‌

(

7

.85‌

)

62,741‌

0

.01‌

2

.17‌

14

.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.

See

accompanying

notes.

305

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2050

ACCOUNT

Class

1

shares

2022

$

19

.60‌

$

0

.20‌

(

$

3

.88‌

)

(

$

3

.68‌

)

(

$

0

.59‌

)

(

$

1

.37‌

)

(

$

1

.96‌

)

$

13

.96‌

2021

17

.47‌

0

.64‌

2

.32‌

2

.96‌

(

0

.22‌

)

(

0

.61‌

)

(

0

.83‌

)

19

.60‌

2020

15

.59‌

0

.27‌

2

.24‌

2

.51‌

(

0

.28‌

)

(

0

.35‌

)

(

0

.63‌

)

17

.47‌

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

See

accompanying

notes.

306

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

18

.81‌

)

%

$

56,830‌

0

.01‌

%

1

.22‌

%

33

.0‌

%

17

.02‌

68,527‌

0

.01‌

3

.37‌

28

.1‌

16

.68‌

49,779‌

0

.02‌

1

.75‌

32

.8‌

26

.39‌

38,881‌

0

.04‌

2

.11‌

24

.9‌

(

8

.64‌

)

30,354‌

0

.02‌

2

.03‌

22

.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.

See

accompanying

notes.

307

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

18

.81‌

$

0

.19‌

(

$

3

.71‌

)

(

$

3

.52‌

)

(

$

0

.52‌

)

(

$

1

.21‌

)

(

$

1

.73‌

)

$

13

.56‌

2021

16

.49‌

0

.61‌

2

.33‌

2

.94‌

(

0

.18‌

)

(

0

.44‌

)

(

0

.62‌

)

18

.81‌

2020

14

.68‌

0

.25‌

2

.10‌

2

.35‌

(

0

.22‌

)

(

0

.32‌

)

(

0

.54‌

)

16

.49‌

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

See

accompanying

notes.

308

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

18

.78‌

)

%

$

15,131‌

0

.04‌

%

(c)

1

.21‌

%

36

.5‌

%

17

.96‌

17,280‌

0

.03‌

(c)

3

.38‌

25

.3‌

16

.58‌

11,468‌

0

.07‌

(c)

1

.73‌

58

.8‌

27

.24‌

8,131‌

0

.10‌

(c)

2

.15‌

38

.6‌

(

9

.25‌

)

4,649‌

0

.10‌

(c)

1

.71‌

84

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

309

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

STRATEGIC

INCOME

ACCOUNT

Class

1

shares

2022

$

12

.62‌

$

0

.28‌

(

$

1

.93‌

)

(

$

1

.65‌

)

(

$

0

.37‌

)

(

$

0

.48‌

)

(

$

0

.85‌

)

$

10

.12‌

2021

12

.84‌

0

.37‌

0

.21‌

0

.58‌

(

0

.25‌

)

(

0

.55‌

)

(

0

.80‌

)

12

.62‌

2020

11

.92‌

0

.25‌

0

.96‌

1

.21‌

(

0

.28‌

)

(

0

.01‌

)

(

0

.29‌

)

12

.84‌

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

See

accompanying

notes.

310

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

13

.09‌

)

%

$

24,133‌

0

.03‌

%

2

.50‌

%

37

.6‌

%

4

.53‌

30,129‌

0

.02‌

2

.85‌

35

.6‌

10

.30‌

31,025‌

0

.03‌

2

.07‌

68

.6‌

12

.46‌

26,279‌

0

.06‌

2

.79‌

69

.0‌

(

3

.00‌

)

20,664‌

0

.03‌

2

.61‌

31

.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.

See

accompanying

notes.

311

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

REAL

ESTATE

SECURITIES

ACCOUNT

Class

1

shares

2022

$

24

.82‌

$

0

.32‌

(

$

6

.46‌

)

(

$

6

.14‌

)

(

$

0

.26‌

)

(

$

1

.45‌

)

(

$

1

.71‌

)

$

16

.97‌

2021

19

.11‌

0

.28‌

7

.26‌

7

.54‌

(

0

.33‌

)

(

1

.50‌

)

(

1

.83‌

)

24

.82‌

2020

21

.50‌

0

.36‌

(

1

.21‌

)

(

0

.85‌

)

(

0

.39‌

)

(

1

.15‌

)

(

1

.54‌

)

19

.11‌

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

Class

2

shares

2022

24

.86‌

0

.28‌

(

6

.47‌

)

(

6

.19‌

)

(

0

.22‌

)

(

1

.45‌

)

(

1

.67‌

)

17

.00‌

2021

19

.16‌

0

.23‌

7

.26‌

7

.49‌

(

0

.29‌

)

(

1

.50‌

)

(

1

.79‌

)

24

.86‌

2020

21

.56‌

0

.34‌

(

1

.24‌

)

(

0

.90‌

)

(

0

.35‌

)

(

1

.15‌

)

(

1

.50‌

)

19

.16‌

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

See

accompanying

notes.

312

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

25

.41‌

)

%

$

124,969‌

0

.79‌

%

1

.59‌

%

18

.5‌

%

40

.44‌

174,922‌

0

.82‌

1

.25‌

23

.1‌

(

3

.42‌

)

129,617‌

0

.83‌

1

.89‌

35

.4‌

31

.26‌

155,569‌

0

.88‌

(c)

1

.62‌

19

.3‌

(

4

.21‌

)

133,429‌

0

.89‌

1

.89‌

17

.3‌

(

25

.58‌

)

9,358‌

1

.04‌

1

.38‌

18

.5‌

40

.04‌

11,650‌

1

.07‌

1

.02‌

23

.1‌

(

3

.65‌

)

6,965‌

1

.08‌

1

.80‌

35

.4‌

30

.94‌

6,361‌

1

.13‌

(c)

1

.43‌

19

.3‌

(

4

.47‌

)

3,493‌

1

.14‌

1

.73‌

17

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

313

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

18

.11‌

$

0

.33‌

(

$

3

.23‌

)

(

$

2

.90‌

)

(

$

0

.38‌

)

(

$

2

.12‌

)

(

$

2

.50‌

)

$

12

.71‌

2021

16

.51‌

0

.35‌

1

.91‌

2

.26‌

(

0

.28‌

)

(

0

.38‌

)

(

0

.66‌

)

18

.11‌

2020

15

.67‌

0

.26‌

1

.43‌

1

.69‌

(

0

.35‌

)

(

0

.50‌

)

(

0

.85‌

)

16

.51‌

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

Class

2

shares

2022

17

.84‌

0

.29‌

(

3

.17‌

)

(

2

.88‌

)

(

0

.34‌

)

(

2

.12‌

)

(

2

.46‌

)

12

.50‌

2021

16

.29‌

0

.32‌

1

.85‌

2

.17‌

(

0

.24‌

)

(

0

.38‌

)

(

0

.62‌

)

17

.84‌

2020

15

.48‌

0

.23‌

1

.39‌

1

.62‌

(

0

.31‌

)

(

0

.50‌

)

(

0

.81‌

)

16

.29‌

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

See

accompanying

notes.

314

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

16

.15‌

)

%

$

438,565‌

0

.23‌

%

2

.17‌

%

43

.2‌

%

13

.74‌

588,703‌

0

.23‌

2

.00‌

38

.9‌

11

.28‌

568,806‌

0

.23‌

1

.74‌

18

.9‌

20

.01‌

574,960‌

0

.24‌

(c)

2

.06‌

23

.0‌

(

5

.04‌

)

561,162‌

0

.23‌

(c)

2

.29‌

18

.2‌

(

16

.29‌

)

129,635‌

0

.48‌

1

.98‌

43

.2‌

13

.39‌

156,241‌

0

.48‌

1

.83‌

38

.9‌

10

.96‌

134,181‌

0

.48‌

1

.56‌

18

.9‌

19

.74‌

123,870‌

0

.49‌

(c)

1

.89‌

23

.0‌

(

5

.25‌

)

104,051‌

0

.48‌

(c)

2

.10‌

18

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

315

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

BALANCED

PORTFOLIO

Class

1

shares

2022

$

13

.61‌

$

0

.30‌

(

$

2

.25‌

)

(

$

1

.95‌

)

(

$

0

.30‌

)

(

$

1

.13‌

)

(

$

1

.43‌

)

$

10

.23‌

2021

12

.80‌

0

.29‌

0

.95‌

1

.24‌

(

0

.25‌

)

(

0

.18‌

)

(

0

.43‌

)

13

.61‌

2020

12

.19‌

0

.24‌

0

.89‌

1

.13‌

(

0

.29‌

)

(

0

.23‌

)

(

0

.52‌

)

12

.80‌

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

Class

2

shares

2022

13

.40‌

0

.27‌

(

2

.22‌

)

(

1

.95‌

)

(

0

.27‌

)

(

1

.13‌

)

(

1

.40‌

)

10

.05‌

2021

12

.61‌

0

.26‌

0

.93‌

1

.19‌

(

0

.22‌

)

(

0

.18‌

)

(

0

.40‌

)

13

.40‌

2020

12

.03‌

0

.22‌

0

.86‌

1

.08‌

(

0

.27‌

)

(

0

.23‌

)

(

0

.50‌

)

12

.61‌

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

See

accompanying

notes.

316

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

.45‌

)

%

$

134,379‌

0

.24‌

%

2

.57‌

%

52

.1‌

%

9

.71‌

169,338‌

0

.23‌

2

.13‌

41

.2‌

9

.60‌

164,411‌

0

.24‌

2

.03‌

23

.4‌

15

.88‌

164,095‌

0

.24‌

(c)

2

.32‌

30

.8‌

(

3

.49‌

)

154,297‌

0

.22‌

(c)

2

.79‌

19

.5‌

(

14

.69‌

)

28,916‌

0

.49‌

2

.35‌

52

.1‌

9

.48‌

34,318‌

0

.48‌

1

.95‌

41

.2‌

9

.25‌

30,178‌

0

.49‌

1

.85‌

23

.4‌

15

.66‌

25,380‌

0

.49‌

(c)

2

.15‌

30

.8‌

(

3

.75‌

)

20,449‌

0

.47‌

(c)

2

.59‌

19

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

317

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

24

.82‌

$

0

.36‌

(

$

4

.75‌

)

(

$

4

.39‌

)

(

$

0

.45‌

)

(

$

2

.33‌

)

(

$

2

.78‌

)

$

17

.65‌

2021

21

.75‌

0

.44‌

3

.40‌

3

.84‌

(

0

.29‌

)

(

0

.48‌

)

(

0

.77‌

)

24

.82‌

2020

19

.94‌

0

.28‌

2

.22‌

2

.50‌

(

0

.37‌

)

(

0

.32‌

)

(

0

.69‌

)

21

.75‌

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

Class

2

shares

2022

24

.39‌

0

.31‌

(

4

.66‌

)

(

4

.35‌

)

(

0

.40‌

)

(

2

.33‌

)

(

2

.73‌

)

17

.31‌

2021

21

.40‌

0

.39‌

3

.32‌

3

.71‌

(

0

.24‌

)

(

0

.48‌

)

(

0

.72‌

)

24

.39‌

2020

19

.63‌

0

.24‌

2

.17‌

2

.41‌

(

0

.32‌

)

(

0

.32‌

)

(

0

.64‌

)

21

.40‌

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

See

accompanying

notes.

318

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

17

.79‌

)

%

$

190,273‌

0

.23‌

%

1

.75‌

%

43

.0‌

%

17

.75‌

242,713‌

0

.23‌

1

.85‌

43

.6‌

12

.95‌

226,009‌

0

.23‌

1

.46‌

20

.7‌

24

.06‌

213,346‌

0

.24‌

(c)

1

.89‌

16

.2‌

(

6

.62‌

)

189,654‌

0

.23‌

(c)

1

.81‌

27

.0‌

(

17

.97‌

)

155,472‌

0

.48‌

1

.52‌

43

.0‌

17

.44‌

192,114‌

0

.48‌

1

.67‌

43

.6‌

12

.68‌

158,606‌

0

.48‌

1

.28‌

20

.7‌

23

.68‌

143,501‌

0

.49‌

(c)

1

.68‌

16

.2‌

(

6

.82‌

)

118,307‌

0

.48‌

(c)

1

.60‌

27

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

319

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

13

.17‌

$

0

.32‌

(

$

2

.03‌

)

(

$

1

.71‌

)

(

$

0

.35‌

)

(

$

0

.94‌

)

(

$

1

.29‌

)

$

10

.17‌

2021

12

.81‌

0

.32‌

0

.55‌

0

.87‌

(

0

.31‌

)

(

0

.20‌

)

(

0

.51‌

)

13

.17‌

2020

12

.58‌

0

.31‌

0

.57‌

0

.88‌

(

0

.36‌

)

(

0

.29‌

)

(

0

.65‌

)

12

.81‌

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

Class

2

shares

2022

13

.00‌

0

.29‌

(

2

.01‌

)

(

1

.72‌

)

(

0

.32‌

)

(

0

.94‌

)

(

1

.26‌

)

10

.02‌

2021

12

.66‌

0

.30‌

0

.53‌

0

.83‌

(

0

.29‌

)

(

0

.20‌

)

(

0

.49‌

)

13

.00‌

2020

12

.44‌

0

.28‌

0

.56‌

0

.84‌

(

0

.33‌

)

(

0

.29‌

)

(

0

.62‌

)

12

.66‌

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

See

accompanying

notes.

320

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

13

.11‌

)

%

$

108,390‌

0

.24‌

%

2

.82‌

%

54

.1‌

%

6

.89‌

148,266‌

0

.23‌

2

.41‌

44

.0‌

7

.27‌

149,396‌

0

.24‌

2

.51‌

38

.6‌

13

.25‌

157,922‌

0

.24‌

2

.65‌

37

.4‌

(

1

.97‌

)

157,019‌

0

.23‌

3

.19‌

19

.9‌

(

13

.37‌

)

34,633‌

0

.49‌

2

.58‌

54

.1‌

6

.61‌

45,586‌

0

.48‌

2

.31‌

44

.0‌

7

.03‌

34,866‌

0

.49‌

2

.31‌

38

.6‌

12

.97‌

30,663‌

0

.49‌

2

.46‌

37

.4‌

(

2

.20‌

)

25,656‌

0

.48‌

3

.07‌

19

.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.

See

accompanying

notes.

321

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

28

.09‌

$

0

.33‌

(

$

5

.59‌

)

(

$

5

.26‌

)

(

$

0

.52‌

)

(

$

2

.55‌

)

(

$

3

.07‌

)

$

19

.76‌

2021

24

.17‌

0

.53‌

4

.24‌

4

.77‌

(

0

.26‌

)

(

0

.59‌

)

(

0

.85‌

)

28

.09‌

2020

21

.85‌

0

.26‌

2

.96‌

3

.22‌

(

0

.38‌

)

(

0

.52‌

)

(

0

.90‌

)

24

.17‌

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

Class

2

shares

2022

27

.62‌

0

.27‌

(

5

.49‌

)

(

5

.22‌

)

(

0

.46‌

)

(

2

.55‌

)

(

3

.01‌

)

19

.39‌

2021

23

.80‌

0

.46‌

4

.16‌

4

.62‌

(

0

.21‌

)

(

0

.59‌

)

(

0

.80‌

)

27

.62‌

2020

21

.53‌

0

.22‌

2

.91‌

3

.13‌

(

0

.34‌

)

(

0

.52‌

)

(

0

.86‌

)

23

.80‌

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

See

accompanying

notes.

322

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

18

.78‌

)

%

$

174,041‌

0

.23‌

%

1

.45‌

%

40

.8‌

%

19

.86‌

223,578‌

0

.23‌

1

.97‌

35

.9‌

15

.40‌

187,904‌

0

.23‌

1

.24‌

22

.3‌

27

.44‌

169,489‌

0

.24‌

(c)

1

.89‌

20

.3‌

(

8

.60‌

)

140,247‌

0

.23‌

(c)

1

.56‌

37

.8‌

(

18

.98‌

)

164,885‌

0

.48‌

1

.22‌

40

.8‌

19

.54‌

205,369‌

0

.48‌

1

.76‌

35

.9‌

15

.13‌

167,706‌

0

.48‌

1

.09‌

22

.3‌

27

.13‌

145,924‌

0

.49‌

(c)

1

.67‌

20

.3‌

(

8

.87‌

)

114,902‌

0

.48‌

(c)

1

.34‌

37

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

323

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

SHORT-TERM

INCOME

ACCOUNT

Class

1

shares

2022

$

2

.53‌

$

0

.04‌

(

$

0

.13‌

)

(

$

0

.09‌

)

(

$

0

.03‌

)

$

–‌

(

$

0

.03‌

)

$

2

.41‌

2021

2

.60‌

0

.03‌

(

0

.05‌

)

(

0

.02‌

)

(

0

.04‌

)

(

0

.01‌

)

(

0

.05‌

)

2

.53‌

2020

2

.57‌

0

.04‌

0

.05‌

0

.09‌

(

0

.06‌

)

–‌

(

0

.06‌

)

2

.60‌

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

See

accompanying

notes.

324

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

)

%

$

134,122‌

0

.46‌

%

1

.74‌

%

57

.7‌

%

(

0

.72‌

)

140,532‌

0

.47‌

1

.09‌

56

.7‌

3

.36‌

157,019‌

0

.51‌

(c)

1

.61‌

73

.7‌

4

.70‌

130,852‌

0

.51‌

(c)

2

.31‌

54

.2‌

1

.02‌

149,075‌

0

.50‌

(c)

2

.19‌

49

.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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

325

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

2022

$

20

.05‌

$

0

.05‌

(

$

4

.08‌

)

(

$

4

.03‌

)

(

$

0

.01‌

)

(

$

2

.98‌

)

(

$

2

.99‌

)

$

13

.03‌

2021

17

.26‌

(

0

.01‌

)

3

.48‌

3

.47‌

(

0

.06‌

)

(

0

.62‌

)

(

0

.68‌

)

20

.05‌

2020

15

.33‌

0

.03‌

3

.03‌

3

.06‌

(

0

.07‌

)

(

1

.06‌

)

(

1

.13‌

)

17

.26‌

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

Class

2

shares

2022

19

.93‌

0

.01‌

(

4

.05‌

)

(

4

.04‌

)

–‌

(

2

.98‌

)

(

2

.98‌

)

12

.91‌

2021

17

.17‌

(

0

.06‌

)

3

.47‌

3

.41‌

(

0

.03‌

)

(

0

.62‌

)

(

0

.65‌

)

19

.93‌

2020

15

.26‌

–‌

3

.01‌

3

.01‌

(

0

.04‌

)

(

1

.06‌

)

(

1

.10‌

)

17

.17‌

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

See

accompanying

notes.

326

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

(

20

.63‌

)

%

(c)

$

156,903‌

0

.84‌

%

0

.32‌

%

18

.0‌

%

20

.12‌

213,890‌

0

.82‌

(

0

.04‌

)

36

.6‌

22

.20‌

195,848‌

0

.84‌

0

.24‌

38

.8‌

27

.40‌

184,434‌

0

.84‌

0

.53‌

34

.7‌

(

10

.89‌

)

163,243‌

0

.83‌

0

.20‌

45

.0‌

(

20

.88‌

)

8,383‌

1

.09‌

0

.07‌

18

.0‌

19

.86‌

10,497‌

1

.07‌

(

0

.29‌

)

36

.6‌

21

.87‌

8,414‌

1

.09‌

(

0

.01‌

)

38

.8‌

27

.12‌

6,829‌

1

.09‌

0

.28‌

34

.7‌

(

11

.17‌

)

(c)

4,874‌

1

.08‌

(

0

.05‌

)

45

.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)

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.

327

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

BUFFER

JANUARY

ACCOUNT

Class

2

shares

2022(c)

$

10.00‌

$

–‌

(

$

0.01‌)

(

$

0.01‌)

$

9.99‌

See

accompanying

notes.

328

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

0.00‌

%

(d),(e)

$

26,581‌

%

0.95‌

(f),(g)

%

3.20‌%

(f)

0.0‌

%

(f)

(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)

Period

from

December

28,

2022,

date

operations

commenced,

through

December

31,

2022.

(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)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

329

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

BUFFER

JULY

ACCOUNT

Class

2

shares

2022(c)

$

10

.00‌

$

0

.04‌

$

0

.15‌

$

0

.19‌

(

$

0

.03‌

)

(

$

0

.03‌

)

$

10

.16‌

See

accompanying

notes.

330

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

.93‌

%

(d)

$

26,247‌

0

.95‌

%

(e)

,(f)

0

.72‌

%

(e)

20

.0‌

%

(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)

Period

from

June

29,

2022,

date

operations

commenced,

through

December

31,

2022.

(d)

Total

return

amounts

have

not

been

annualized.

(e)

Computed

on

an

annualized

basis.

(f)

Reflects

Manager's

contractual

expense

limit.

See

accompanying

notes.

331

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

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

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

BUFFER

OCTOBER

ACCOUNT

Class

2

shares

2022(c)

$

10

.00‌

$

0

.02‌

$

0

.51‌

$

0

.53‌

(

$

0

.02‌

)

(

$

0

.02‌

)

$

10

.51‌

See

accompanying

notes.

332

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

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

5

.29‌

%

(d)

$

17,978‌

0

.99‌

%

(e)

,(f)

,(g)

0

.68‌

%

(e)

180

.0‌

%

(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)

Period

from

September

29,

2022,

date

operations

commenced,

through

December

31,

2022.

(d)

Total

return

amounts

have

not

been

annualized.

(e)

Computed

on

an

annualized

basis.

(f)

Reflects

Manager's

contractual

expense

limit.

(g)

Includes

0.04%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

Report

of

Independent

Registered

Public

Accounting

Firm

333

To

the

Shareholders

and

the

Board

of

Directors

of

Principal

Variable

Contracts

Funds,

Inc.

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities

of

Principal

Variable

Contracts

Funds,

Inc.

(the

“Fund”)

(comprising

Blue

Chip

Account,

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,

Global

Emerging

Markets

Account

(formerly

International

Emerging

Markets

Account),

Government

&

High

Quality

Bond

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,

SmallCap

Account,

U.S.

LargeCap

Buffer

January

Account,

U.S.

LargeCap

Buffer

July

Account,

and

U.S.

LargeCap

Buffer

October

Account

(collectively

referred

to

as

the

“Funds”)),

including

the

schedules

of

investments,

as

of

December

31,

2022,

and

the

related

statements

of

operations

and

changes

in

net

assets,

and

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

and

the

related

notes

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

comprising

the

Fund

at

December

31,

2022,

the

results

of

their

operations,

changes

in

net

assets

and

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Funds

comprising

the

Fund

Statement

of

operations

Statements

of

changes

in

net

assets

Financial

highlights

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

Global

Emerging

Markets

Account

(formerly

International

Emerging

Markets

Account)

Government

&

High

Quality

Bond

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

SmallCap

Account

For

the

year

ended

December

31,

2022

For

each

of

the

two

years

in

the

period

ended

December

31,

2022

For

each

of

the

five

years

in

the

period

ended

December

31,

2022

Blue

Chip

Account

For

the

year

ended

December

31,

2022

For

each

of

the

two

years

in

the

period

ended

December

31,

2022

For

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

period

from

December

9,

2020,

date

operations

commenced,

through

December

31,

2020

U.S.

LargeCap

Buffer

January

Account

For

the

period

from

December

28,

2022,

date

operations

commenced,

through

December

31,

2022

U.S.

LargeCap

Buffer

July

Account

For

the

period

from

June

29,

2022,

date

operations

commenced,

through

December

31,

2022

U.S.

LargeCap

Buffer

October

Account

For

the

period

from

September

29,

2022,

date

operations

commenced,

through

December

31,

2022

Report

of

Independent

Registered

Public

Accounting

Firm

334

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

each

of

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Fund’s

internal

control

over

financial

reporting.

As

part

of

our

audits

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022,

by

correspondence

with

the

custodian,

agent

banks,

brokers,

portfolio

company

management

and

transfer

agents;

when

replies

were

not

received

from

brokers

or

agent

banks,

we

performed

other

auditing

procedures.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Principal

investment

companies

since

1969.

Minneapolis,

Minnesota

February

21,

2023

Shareholder

Expense

Example

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

(unaudited)

335

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

Funds

may

indirectly

bear

its

pro

rata

share

of

the

expenses

incurred

by

the

investment

companies

in

which

the

Funds

invest.

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

(

July

1,

2022

to

December

31,

2022

),

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

fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

fund’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.

Actual

Hypothetical

Beginning

Account

Value

July

1,

2022

Ending

Account

Value

December

31,

2022

Expenses

Paid

During Period

July

1,

2022 to

December

31,

2022

(a)

Beginning

Account

Value

July

1,

2022

Ending

Account

Value

December

31,

2022  

Expenses

Paid

During Period

July

1,

2022 to

December

31,

2022

(a)

Annualized

Expense

Ratio

Blue

Chip

Account

Class

3

$

1,000.00

$

992.49

$

5.27

$

1,000.00

$

1,019.91

$

5.35

1.05

%

Bond

Market

Index

Account

Class

1

1,000.00

968.26

0.69

1,000.00

1,024.50

0.71

0.14

Core

Plus

Bond

Account

Class

1

1,000.00

971.24

2.53

1,000.00

1,022.63

2.60

0.51

Diversified

Balanced

Account

Class

1

1,000.00

1,002.68

0.25

1,000.00

1,024.95

0.26

0.05

Class

2

1,000.00

1,001.28

1.51

1,000.00

1,023.69

1.53

0.30

Class

3

1,000.00

999.99

2.27

1,000.00

1,022.94

2.29

0.45

Diversified

Balanced

Managed

Volatility

Account

Class

2

1,000.00

1,001.59

1.56

1,000.00

1,023.64

1.58

0.31

Class

3

1,000.00

1,000.28

2.32

1,000.00

1,022.89

2.35

0.46

Diversified

Balanced

Volatility

Control

Account

Class

2

1,000.00

996.48

1.91

1,000.00

1,023.29

1.94

0.38

Class

3

1,000.00

996.46

2.67

1,000.00

1,022.53

2.70

0.53

Diversified

Growth

Account

Class

2

1,000.00

1,010.31

1.52

1,000.00

1,023.69

1.53

0.30

Class

3

1,000.00

1,009.88

2.28

1,000.00

1,022.94

2.29

0.45

Shareholder

Expense

Example

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

(unaudited)

336

Actual

Hypothetical

Beginning

Account

Value

July

1,

2022

Ending

Account

Value

December

31,

2022

Expenses

Paid

During Period

July

1,

2022 to

December

31,

2022

(a)

Beginning

Account

Value

July

1,

2022

Ending

Account

Value

December

31,

2022  

Expenses

Paid

During Period

July

1,

2022 to

December

31,

2022

(a)

Annualized

Expense

Ratio

Diversified

Growth

Managed

Volatility

Account

Class

2

$

1,000.00

$

1,011.59

$

1.52

$

1,000.00

$

1,023.69

$

1.53

0.30

%

Class

3

1,000.00

1,011.07

2.28

1,000.00

1,022.94

2.29

0.45

Diversified

Growth

Volatility

Control

Account

Class

2

1,000.00

1,005.39

1.87

1,000.00

1,023.34

1.89

0.37

Class

3

1,000.00

1,005.03

2.63

1,000.00

1,022.58

2.65

0.52

Diversified

Income

Account

Class

2

1,000.00

991.52

1.51

1,000.00

1,023.69

1.53

0.30

Class

3

1,000.00

989.93

2.26

1,000.00

1,022.94

2.29

0.45

Diversified

International

Account

Class

1

1,000.00

1,036.92

4.57

1,000.00

1,020.72

4.53

0.89

Equity

Income

Account

Class

1

1,000.00

1,048.39

2.48

1,000.00

1,022.79

2.45

0.48

Class

2

1,000.00

1,047.10

3.77

1,000.00

1,021.53

3.72

0.73

Class

3

1,000.00

1,046.42

4.54

1,000.00

1,020.77

4.48

0.88

Global

Emerging

Markets

Account

Class

1

1,000.00

970.86

5.37

1,000.00

1,019.76

5.50

1.08

Government

&

High

Quality

Bond

Account

Class

1

1,000.00

964.34

2.48

1,000.00

1,022.68

2.55

0.50

LargeCap

Growth

Account

I

Class

1

1,000.00

975.04

3.48

1,000.00

1,021.68

3.57

0.70

LargeCap

S&P

500

Index

Account

Class

1

1,000.00

1,021.56

1.27

1,000.00

1,023.95

1.28

0.25

Class

2

1,000.00

1,020.66

2.55

1,000.00

1,022.68

2.55

0.50

LargeCap

S&P

500

Managed

Volatility

Index

Account

Class

1

1,000.00

1,023.68

2.35

1,000.00

1,022.89

2.35

0.46

MidCap

Account

Class

1

1,000.00

1,046.95

2.79

1,000.00

1,022.48

2.75

0.54

Class

2

1,000.00

1,045.80

4.07

1,000.00

1,021.22

4.02

0.79

Principal

Capital

Appreciation

Account

Class

1

1,000.00

1,046.86

3.25

1,000.00

1,022.03

3.21

0.63

Class

2

1,000.00

1,045.49

4.54

1,000.00

1,020.77

4.48

0.88

Principal

LifeTime

2010

Account

Class

1

1,000.00

999.10

0.10

1,000.00

1,025.10

0.10

0.02

Principal

LifeTime

2020

Account

Class

1

1,000.00

1,002.70

0.05

1,000.00

1,025.16

0.05

0.01

Principal

LifeTime

2030

Account

Class

1

1,000.00

1,007.25

0.05

1,000.00

1,025.16

0.05

0.01

Principal

LifeTime

2040

Account

Class

1

1,000.00

1,020.04

0.05

1,000.00

1,025.16

0.05

0.01

Shareholder

Expense

Example

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

(unaudited)

337

Actual

Hypothetical

Beginning

Account

Value

July

1,

2022

Ending

Account

Value

December

31,

2022

Expenses

Paid

During Period

July

1,

2022 to

December

31,

2022

(a)

Beginning

Account

Value

July

1,

2022

Ending

Account

Value

December

31,

2022  

Expenses

Paid

During Period

July

1,

2022 to

December

31,

2022

(a)

Annualized

Expense

Ratio

Principal

LifeTime

2050

Account

Class

1

$

1,000.00

$

1,027.37

$

0.05

$

1,000.00

$

1,025.16

$

0.05

0.01

%

Principal

LifeTime

2060

Account

Class

1

1,000.00

1,027.39

0.20

1,000.00

1,025.00

0.20

0.04

Principal

LifeTime

Strategic

Income

Account

Class

1

1,000.00

999.82

0.15

1,000.00

1,025.05

0.15

0.03

Real

Estate

Securities

Account

Class

1

1,000.00

934.98

3.85

1,000.00

1,021.22

4.02

0.79

Class

2

1,000.00

933.93

5.07

1,000.00

1,019.96

5.30

1.04

SAM

Balanced

Portfolio

Class

1

1,000.00

1,007.65

1.21

1,000.00

1,024.00

1.22

0.24

Class

2

1,000.00

1,006.31

2.48

1,000.00

1,022.74

2.50

0.49

SAM

Conservative

Balanced

Portfolio

Class

1

1,000.00

1,001.98

1.21

1,000.00

1,024.00

1.22

0.24

Class

2

1,000.00

1,000.14

2.47

1,000.00

1,022.74

2.50

0.49

SAM

Conservative

Growth

Portfolio

Class

1

1,000.00

1,014.66

1.22

1,000.00

1,024.00

1.22

0.24

Class

2

1,000.00

1,013.48

2.49

1,000.00

1,022.74

2.50

0.49

SAM

Flexible

Income

Portfolio

Class

1

1,000.00

996.84

1.21

1,000.00

1,024.00

1.22

0.24

Class

2

1,000.00

994.89

2.46

1,000.00

1,022.74

2.50

0.49

SAM

Strategic

Growth

Portfolio

Class

1

1,000.00

1,023.97

1.22

1,000.00

1,024.00

1.22

0.24

Class

2

1,000.00

1,022.79

2.50

1,000.00

1,022.74

2.50

0.49

Short-Term

Income

Account

Class

1

1,000.00

1,001.12

2.32

1,000.00

1,022.89

2.35

0.46

SmallCap

Account

Class

1

1,000.00

1,042.82

4.33

1,000.00

1,020.97

4.28

0.84

Class

2

1,000.00

1,040.81

5.61

1,000.00

1,019.71

5.55

1.09

U.S.

LargeCap

Buffer

January

Account

Class

2

1,000.00

1,000.00

0.08

(b)

1,000.00

1,020.42

4.84

0.95

U.S.

LargeCap

Buffer

July

Account

Class

2

1,000.00

1,019.33

4.84

1,000.00

1,020.42

4.84

0.95

U.S.

LargeCap

Buffer

October

Account

Class

2

1,000.00

1,052.89

2.59

(

c

)

1,000.00

1,020.21

5.04

0.99

(a)

Expenses

are

equal

to

a

fund's

annualized

expense

ratio

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/365

(to

reflect

the

one-half

year

period).

(b)

Expenses

are

equal

to

a

fund's

annualized

expense

ratio

multiplied

by

the

average

account

value

over

the

period

(December

28,

2022

to

December

31,

2022),

multiplied

by

3/365

(to

reflect

the

period

since

inception).

(c)

Expenses

are

equal

to

a

fund's

annualized

expense

ratio

multiplied

by

the

average

account

value

over

the

period

(September

29,

2022

to

December

31,

2022),

multiplied

by

93/365

(to

reflect

the

period

since

inception).

Principal

Variable

Contracts

Funds,

Inc.

(unaudited)

338

Notification

of

Source

of

Distributions

Pursuant

to

Rule

19a-1

of

the

Investment

Company

Act

of

1940

As

noted

in

the

table

provided

below,

certain

of

the

Funds

made

distributions

for

the

months

of

September

2022

and

December

2022

for

which

a

portion

is

estimated

to

be

in

excess

of

the

Fund’s

current

and

accumulated

net

income.

As

of

these

month

ends,

the

estimated

sources

of

these

distributions

were

as

follows:

The

ultimate

composition

of

these

distributions

may

vary

from

the

estimates

provided

above

due

to

a

variety

of

factors

including

future

income

and

expenses,

and

realized

gains

and

losses

from

the

purchase

and

sale

of

securities.

Please

note

that

this

information

is

being

provided

to

satisfy

certain

notice

requirements

under

the

Investment

Company

Act

of

1940.

Tax

reporting

information

for

shareholders

of

the

Funds

will

not

be

available

until

the

end

of

the

Funds’

fiscal

year.

As

a

result,

shareholders

should

not

use

the

information

provided

in

this

notice

for

tax

reporting

purposes.

September

2022

Fund

Net

Income

Realized

Gain

Capital

Sources

Diversified

International

Account

98.39%

0.00%

1.61%

MidCap

Account

33.18

66.82

0.00

December

2022

Fund

Net

Income

Realized

Gain

Capital

Sources

U.S.

LargeCap

Buffer

October

Account

99.01%

0.99%

0.00%

339

FUND

BOARD

OF

DIRECTORS

AND

OFFICERS

The

Board

of

Directors

(the

“Board”)

has

overall

responsibility

for

overseeing

the

Fund’s

operations

in

accordance

with

the

Investment

Act

of

1940,

as

amended

(the

“1940

Act”),

other

applicable

laws,

and

the

Fund’s

charter.

Each

member

of

the

Board

(“Board

Member”)

serves

on

the

Boards

of

the

following

investment

companies:

Principal

Funds,

Inc.,

Principal

Variable

Contracts

Funds,

Inc.,

Principal

Exchange-Traded

Funds,

and

Principal

Diversified

Select

Real

Asset

Fund

which

are

collectively

referred

to

as

the

“Fund

Complex”.

Board

Members

that

are

affiliated

persons

of

any

investment

advisor,

the

principal

distributor,

or

the

principal

underwriter

of

the

Fund

Complex

are

considered

“interested

persons”

of

the

Fund

(as

defined

in

the

1940

Act)

and

are

referred

to

as

“Interested

Board

Members”.

Board

Members

who

are

not

Interested

Board

Members

are

referred

to

as

“Independent

Board

Members”.

Each

Board

Member

generally

serves

until

the

next

annual

meeting

of

shareholders

or

until

such

Board

Member’s

earlier

death,

resignation,

or

removal.

Independent

Board

Members

have

a

72-year

age

limit

and,

for

Independent

Board

Members

elected

on

or

after

September

14,

2021,

a

72-year

age

limit

or

a

15-year

term

limit,

whichever

occurs

first.

The

Board

may

waive

the

age

or

term

limits

in

the

Board’s

discretion.

The

Board

elects

officers

to

supervise

the

day-to-day

operations

of

the

Fund

Complex.

Officers

serve

at

the

pleasure

of

the

Board,

and

each

officer

has

the

same

position

with

each

investment

company

in

the

Fund

Complex.

INDEPENDENT

BOARD

MEMBERS

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

Other

Directorships

Held

by

Board

Member

During

Past

5

Years

Leroy

T.

Barnes,

Jr.

Board

Member

since

2012

Member,

Audit

Committee

1951

Retired

131

Formerly:

McClatchy

Newspapers,

Inc.;

Frontier

Communications,

Inc.

Craig

Damos

Lead

Independent

Board

Member

since

2020

Board

Member

since

2008

Member,

Nominating

and

Governance

Committee

Member,

Operations

Committee

Member,

Executive

Committee

1954

President,

C.P.

Damos

Consulting

LLC

131

None

Katharin

S.

Dyer

Board

Member

since

2023

Member,

Operations

Committee

1957

Founder

and

Chief

Executive

Officer,

Pivotwise,

Global

Partner,

IBM

(2016

–

2018)

131

Liquidity

Services,

Inc.

Frances

Grieb

Board

Member

since

2023

Member,

Audit

Committee

1960

Retired

131

First

Interstate

BancSystems,

Inc.

since

2022;

Great

Western

Bancorp,

Inc.

and

Great

Western

Bank

(2014-2022)

Fritz

S.

Hirsch

Board

Member

since

2005

Member,

Nominating

and

Governance

Committee

Member,

15(c)

Committee

1951

Interim

CEO,

MAM

USA:

February

2020

to

October

2020

131

MAM

USA

Victor

Hymes

Board

Member

since

2020

Chair,

Audit

Committee

Member,

Nominating

and

Governance

Committee

1957

Founder

and

Managing

Member

of

Legato

Capital

Management,

LLC

131

Formerly,

Montgomery

Street

Income

Securities

Inc.

Padelford

(“Padel”)

L.

Lattimer

Board

Member

since

2020

Chair,

Operations

Committee

Member,

15(c)

Committee

1961

Managing

Partner,

TBA

Management

Consulting

LLC

131

None

Karen

(“Karrie”)

McMillan

Board

Member

since

2014

Member,

Operations

Committee

Chair,

15(c)

Committee

1961

Founder/Owner,

Tyche

Consulting

LLC

Formerly,

Managing

Director,

Patomak

Global

Partners,

LLC

131

None

340

INTERESTED

BOARD

MEMBERS

Correspondence

intended

for

each

Board

Member

who

is

other

than

an

Interested

Board

Member

may

be

sent

to

655

9th

Street,

Des

Moines,

IA

50392.

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

Other

Directorships

Held

by

Board

Member

During

Past

5

Years

Elizabeth

A.

Nickels

Board

Member

since

2015

Member,

Audit

Committee

Chair,

Nominating

and

Governance

Committee

1962

Retired

131

SpartanNash

Mary

M.

(“Meg”)

VanDeWeghe

Board

Member

since

2018

Member,

Audit

Committee

Member,

15(c)

Committee

1959

CEO

and

President,

Forte

Consulting,

Inc.

131

Helmerich

&

Payne;

Formerly:

Brown

Advisory;

Denbury

Resources

Inc.

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

Other

Directorships

Held

by

Board

Member

During

Past

5

Years

Timothy

M.

Dunbar

Principal

Global

Investors

(“PGI”)

131

None

Chair

and

Board

Member

since

2019

Chair,

Executive

Committee

1957

President

(2018-2021)

Director

(2018-2020)

Principal

Financial

Group,

Inc.

(“PFGI”),

Principal

Financial

Services,

Inc.

(“PFSI”),

and

Principal

Life

Insurance

Company

(“PLIC”)

Division

President

(2020-2021)

President

(2018-2020)

Executive

Vice

President

and

Chief

Investment

Officer

(2014-2018)

Post

Advisory

Group,

LLC

(“Post”)

Director

(2018-2020)

RobustWealth

Chair

and

Executive

Vice

President

(2018-2021)

Patrick

G.

Halter

PGI

131

None

Board

Member

since

2017

Member,

Executive

Committee

1959

Chair

since

2018

Chief

Executive

Officer

and

President

since

2018

Chief

Operating

Officer

(2017-2018)

Director

since

2003

PFGI,

PFSI,

and

PLIC

President

and

Chief

Executive

Officer

–

Principal

Asset

Management

(“PAM”)

since

2022

President

–

Principal

Global

Asset

Management

(“PGAM”)

(2020-2022)

Post

Director

since

2017

Chair

(2017-2020)

Principal

Real

Estate

Investors,

LLC

(“PREI”)

President

-

PGAM

since

2022

Director

and

Chair

since

2004

Chief

Executive

Officer

and

President

(2018-2021)

Chief

Executive

Officer

(2005-2018)

Origin

Asset

Management

LLP

(“Origin”)

Director

(2018-2019)

341

FUND

COMPLEX

OFFICERS

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Kamal

Bhatia

PGI

President

and

Chief

Executive

Officer

Des

Moines,

IA

50392

1972

Director

since

2019

President

–

Principal

Funds

since

2019

Principal

Funds

Distributor,

Inc.

(“PFD”)

Director

since

2019

PFGI,

PFSI,

and

PLIC

Senior

Executive

Director

and

Chief

Operating

Officer

-

PAM

since

2022

Senior

Executive

Director

and

Chief

Operating

Officer

–

PGI

(2020-2022)

President-Principal

Funds

(2019-2020)

Post

Director

since

2020

PREI

Senior

Executive

Director

and

Chief

Operating

Officer

–

PGI

since

2022

Director

since

2020

Principal

Shareholder

Services,

Inc.

(“PSS”)

Executive

Vice

President

since

2019

Director

and

Chair

(2019-2022)

Spectrum

Asset

Management,

Inc.

(“Spectrum”)

Director

since

2021

Origin

Additional

Director

since

2022

Oppenheimer

Funds

Senior

Vice

President

(2011-2019)

Randy

D.

Bolin

Assistant

Tax

Counsel

Des

Moines,

IA

50392

1961

Vice

President/Associate

General

Counsel,

PGI

since

2016

Vice

President/Associate

General

Counsel,

PFSI

since

2013

Vice

President/Associate

General

Counsel,

PLIC

since

2013

Beth

Graff

Vice

President

and

Assistant

Controller

Des

Moines,

IA

50392

1968

Director

–

Fund

Accounting,

PLIC

since

2016

Gina

L.

Graham

Treasurer

Des

Moines,

IA

50392

1965

Vice

President

and

Treasurer,

PGI

since

2016

Vice

President

and

Treasurer,

PFD

since

2016

Vice

President

and

Treasurer,

PFSI

since

2016

Vice

President

and

Treasurer,

PLIC

since

2016

Vice

President

and

Treasurer,

PREI

since

2017

Vice

President

and

Treasurer,

Principal

Securities,

Inc.

(“PSI”)

since

2016

Vice

President

and

Treasurer,

PSS

since

2016

Vice

President

and

Treasurer,

RobustWealth,

Inc.

since

2018

Megan

Hoffmann

Vice

President

and

Controller

Des

Moines,

IA

50392

1979

Director

–

Accounting,

PLIC

since

2020

Assistant

Director

–

Accounting,

PLIC

(2017-2020)

Laura

B.

Latham

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

50392

1986

Counsel,

PGI

since

2018

Counsel,

PLIC

since

2018

342

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Diane

K.

Nelson

AML

Officer

Des

Moines,

IA

50392

1965

Chief

Compliance

Officer/AML

Officer,

PSS

since

2015

Tara

Parks

Vice

President

and

Assistant

Controller

Des

Moines,

IA

50392

1983

Director

–

Accounting,

PLIC

since

2019

Tax

Manager

–

ALPS

Fund

Services

(2011-2019)

Deanna

Y.

Pellack

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

50392

1987

Counsel,

PLIC

since

2022

Vice

President,

The

Northern

Trust

Company

(2019-

2022)

Second

Vice

President,

The

Northern

Trust

Company

(2014-2019)

Secretary,

Advisers

Investment

Trust

(2021-2022)

Assistant

Secretary,

Advisers

Investment

Trust

(2018-2021)

Sara

L.

Reece

Vice

President

and

Chief

Operating

Officer

Des

Moines,

IA

50392

1975

Managing

Director

–

Global

Funds

Ops,

PLIC

since

2021

Managing

Director

–

Financial

Analysis/

Planning,

PLIC

(2021)

Director

-

Accounting,

PLIC

(2015-2021)

Teri

R.

Root

Chief

Compliance

Officer

Des

Moines,

IA

50392

1979

Interim

Chief

Compliance

Officer

-

Funds

(2018)

Deputy

Chief

Compliance

Officer

-

Funds

(2015-

2018)

Chief

Compliance

Officer

–

Funds,

PGI

since

2018

Deputy

Chief

Compliance

Officer,

PGI

(2017-2018)

Vice

President,

PSS

since

2015

Michael

Scholten

Chief

Financial

Officer

Des

Moines,

IA

50392

1979

Chief

Operations

Officer,

PFD

since

2022

Chief

Financial

Officer

–

PFD

(2016-2022)

Assistant

Vice

President

and

Actuary,

PLIC

since

2021

Chief

Financial

Officer

–

Funds/Platforms,

PLIC

since

2015

Chief

Financial

Officer,

PSS

since

2015

Adam

U.

Shaikh

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

50392

1972

Assistant

General

Counsel,

PGI

since

2018

Counsel,

PGI

(2017-2018)

Counsel,

PLIC

since

2006

John

L.

Sullivan

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

50392

1970

Counsel,

PGI

since

2020

Counsel,

PLIC

since

2019

Prior

thereto,

Attorney

in

Private

Practice

Dan

L.

Westholm

Assistant

Treasurer

Des

Moines,

IA

50392

1966

Assistant

Vice

President-Treasury,

PGI

since

2013

Assistant

Vice

President-Treasury,

PFD

since

2013

Assistant

Vice

President-Treasury,

PLIC

since

2014

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

since

2007

343

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Clint

L.

Woods

PGI

Counsel,

Vice

President,

and

Assistant

Secretary

Des

Moines,

IA

50392

1961

Vice

President,

Associate

General

Counsel,

and

Assistant

Secretary

since

2021

Vice

President,

Associate

General

Counsel,

and

Secretary

(2020-2021)

Vice

President,

Associate

General

Counsel,

Governance

Officer,

and

Assistant

Corporate

Secretary

(2018-2020)

PFD

Vice

President,

Associate

General

Counsel,

and

Secretary

since

2022

Vice

President,

Associate

General

Counsel,

and

Assistant

Corporate

Secretary

(2019-2022)

PFSI

Vice

President,

Associate

Counsel,

Governance

Officer,

and

Assistant

Corporate

Secretary

since

2015

PLIC

Vice

President,

Associate

General

Counsel,

Governance

Officer,

and

Assistant

Corporate

Secretary

since

2015

Post

Assistant

Secretary

since

2021

Secretary

(2020-2021)

PREI

Vice

President,

Associate

General

Counsel,

Governance

Officer,

and

Secretary

since

2020

Vice

President,

Associate

Counsel,

Governance

Officer,

and

Assistant

Corporate

Secretary

(2020)

PSI

Vice

President,

Associate

General

Counsel,

and

Secretary

(2021-2022)

Vice

President,

Associate

General

Counsel,

and

Assistant

Corporate

Secretary

(2019-2021)

PSS

Vice

President,

Associate

General

Counsel,

and

Secretary

since

2021

Vice

President,

Associate

General

Counsel,

and

Assistant

Corporate

Secretary

(2019-2021)

RobustWealth,

Inc.

Vice

President,

Associate

General

Counsel,

and

Assistant

Corporate

Secretary

since

2019

Spectrum

Assistant

Secretary

since

2021

Secretary

(2020-2021)

Jared

A.

Yepsen

Assistant

Tax

Counsel

Des

Moines,

IA

50392

1981

Counsel,

PGI

(2017-2019)

Counsel,

PLIC

since

2015

344

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

related

materials.

The

Audit

Committee’s

primary

purpose

is

to

assist

the

Board

by

serving

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

Fund

Complex's

business

except

the

power

to

1)

issue

stock,

except

as

permitted

by

law;

2)

recommend

to

the

stockholders

any

action

which

requires

stockholder

approval;

3)

amend

the

bylaws;

or

4)

approve

any

merger

or

share

exchange

which

does

not

require

shareholder

approval.

The

Nominating

and

Governance

Committee’s

primary

purpose

is

to

oversee

the

structure

and

efficiency

of

the

Board

and

the

committees.

The

Committee

is

responsible

for

evaluating

Board

membership

and

functions,

committee

membership

and

functions,

insurance

coverage,

and

legal

matters.

The

Committee's

nominating

functions

include

selecting

and

nominating

Independent

Board

Member

candidates

for

election

to

the

Board.

Generally,

the

Committee

requests

nominee

suggestions

from

Board

Members

and

management.

In

addition,

the

Committee

considers

candidates

recommended

by

shareholders

of

the

Fund

Complex.

Recommendations

should

be

submitted

in

writing

to

the

Principal

Funds

Complex

Secretary,

in

care

of

the

Principal

Funds

Complex,

711

High

Street,

Des

Moines,

IA

50392.

Such

recommendations

must

include

all

information

specified

in

the

Committee’s

charter

and

must

conform

with

the

procedures

set

forth

in

Appendix

A

thereto,

which

can

be

found

at

https://secure02.principal.com/publicvsupply/GetFile?fm=MM13013&ty=VOP&EXT=.VOP.

Examples

of

such

information

include

the

nominee’s

biographical

information;

relevant

educational

and

professional

background

of

the

nominee;

the

number

of

shares

of

each

Fund

owned

of

record

and

beneficially

by

the

nominee

and

by

the

recommending

shareholder;

any

other

information

regarding

the

nominee

that

would

be

required

to

be

disclosed

in

a

proxy

statement

or

other

filing

required

to

be

made

in

connection

with

the

solicitation

of

proxies

for

the

election

of

board

members;

whether

the

nominee

is

an

“interested

person”

of

the

Fund

as

defined

in

the

1940

Act;

and

the

written

consent

of

the

nominee

to

be

named

as

a

nominee

and

serve

as

a

board

member

if

elected.

When

evaluating

a

potential

nominee

for

Independent

Board

Member,

the

Committee

may

consider,

among

other

factors:

educational

background;

relevant

business

and

industry

experience;

whether

the

person

is

an

"interested

person"

of

the

Fund

as

defined

in

the

1940

Act;

and

whether

the

person

is

willing

to

serve,

and

willing

and

able

to

commit

the

time

necessary

to

attend

meetings

and

perform

the

duties

of

an

Independent

Board

Member. In

addition,

the

Committee

may

consider

whether

a

candidate’s

background,

experience,

skills

and

views

would

complement

the

background,

experience,

skills

and

views

of

other

Board

Members

and

would

contribute

to

the

diversity

of

the

Board. The

Committee

meets

with

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

Board

does

not

regularly

use

the

services

of

professional

search

firms

to

identify

or

evaluate

potential

candidates

or

nominees.

The

Operations

Committee’s

primary

purpose

is

to

review

and

oversee

the

provision

of

administrative

and

distribution

services

to

the

Fund

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

Prospectuses

dated

May

1,

2022

(and

as

supplemented)

and

the

Statement

of

Additional

Information

dated

May

1,

2022

and

restated

September

14,

2022

(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.principalam.com/pvcprospectuses.

345

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

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT

reports

are available

on the

Commission’s

website

at

www.

sec.gov.

346

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

the

renewal

of

the

Management

Agreement

and

various

sub-advisory

agreements

for

all

Funds.

Annual

Review

and

Renewal

of

Management

Agreement

and

Sub-Advisory

Agreements

At

its

September

13,

2022

meeting,

the

Board

performed

its

annual

review

and

renewal

process

relating

to

the

Management

Agreement

and

the

Sub-Advisory

Agreements

for

all

Funds.

Section

15(c)

of

the

Investment

Company

Act

of

1940

(the

“1940

Act”)

requires

the

Board,

including

a

majority

of

the

Directors

who

have

no

direct

or

indirect

interest

in

the

investment

advisory

agreements

and

who

are

not

“interested

persons”

of

PVC,

as

defined

in

the

1940

Act

(the

“Independent

Directors”),

annually

to

review

and

to

consider

the

continuation

of:

(1)

the

Management

Agreement

between

the

Principal

Global

Investors,

LLC

(the

“Manager”)

and

PVC,

on

behalf

of

each

of

the

thirty-five

(35)

series

of

PVC

(each

series

is

referred

to

as

a

“Fund”);

and

(2)

the

Sub-Advisory

Agreements

between

the

Manager

and

each

of

Brown

Advisory,

LLC;

Principal

Real

Estate

Investors,

LLC

(“Principal-REI”);

Spectrum

Asset

Management

Inc.

(“Spectrum”)

and

T.

Rowe

Price

Associates,

Inc.

(collectively,

the

“Sub-Advisors”).

The

Management

Agreement

and

the

Sub-Advisory

Agreements

are

collectively

referred

to

as

the

“Advisory

Agreements.”

The

Board

considered

the

factors

and

reached

the

conclusions

described

below

relating

to

the

continuation

of

the

Advisory

Agreements.

In

evaluating

the

Advisory

Agreements,

the

Board,

reviewed

a

broad

range

of

information

including,

among

other

information,

information

regarding

performance,

advisory

fees,

total

expenses,

profitability

from

the

Advisory

Agreements

to

the

Manager

and

information

about

economies

of

scale.

For

PVC

U.S.

LargeCap

Buffer

July

Account,

which

began

operations

after

the

previous

annual

evaluation

of

the

Advisory

Agreements

in

September

2021,

the

Board

considered

that

the

Fund

had

less

than

a

full

year

of

operations

and

reviewed

the

information

that

they

had

considered

in

connection

with

the

initial

approval

of

the

Advisory

Agreements

for

the

Fund,

as

updated,

along

with

such

additional

information

as

the

Board

requested.

The

Board

reviewed

the

materials

provided

and

concluded

that

it

was

provided

all

information

reasonably

necessary

to

evaluate

the

Advisory

Agreements.

Management

Agreement

With

respect

to

the

Management

Agreement

for

each

Fund,

the

Board

considered,

among

other

factors,

that

the

Manager

and

its

affiliates

have

demonstrated

a

long-term

commitment

to

support

the

Funds,

including

undertakings

to

cap

Fund

expenses

and/

or

waive

management

fees

for

certain

Funds.

In

addition,

the

Board

considered

various

factors,

including

the

following,

and

made

certain

findings

and

conclusions

with

respect

thereto,

for

each

of

the

Funds.

The

Board

concluded

that

a

relationship

with

a

capable

and

conscientious

adviser

is

in

the

best

interests

of

each

Fund.

Nature,

Quality

and

Extent

of

Services

The

Board

considered

the

nature,

quality

and

extent

of

the

services

provided

under

the

Management

Agreements,

including

accounting

and

administrative

services.

The

Board

considered

the

experience

and

skills

of

senior

management

leading

Fund

operations,

the

experience

and

skills

of

the

personnel

performing

the

functions

under

the

Management

Agreements

and

the

resources

made

available

to

such

personnel,

the

ability

of

the

Manager

to

attract

and

retain

high-quality

personnel

and

the

organizational

depth

and

stability

of

the

Manager.

The

Board

concluded

that

appropriate

resources

were

provided

under

the

Management

Agreement.

The

Board

also

considered

that,

during

the

periods

reviewed,

the

Manager

had

delegated

day-to-day

portfolio

management

responsibility

for

certain

Funds

to

the

Sub-Advisors.

The

Board

noted

that

the

Manager’s

process

for

the

selection

of

sub-advisors

emphasizes

the

selection

of

Principal-affiliated

sub-advisors

that

are

determined

to

be

qualified

under

the

Manager’s

due

diligence

process,

but

that

the

Manager

will

select

an

unaffiliated

sub-advisor

to

manage

all

or

a

portion

of

a

Fund’s

investment

portfolio

when

deemed

necessary

or

appropriate

based

upon

a

consideration

of

the

Fund’s

investment

mandate

and

available

expertise

and

resources

within

the

Principal

organization.

With

respect

to

Funds

with

unaffiliated

Sub-Advisors,

the

Board

considered

the

due

diligence

process

developed

by

the

Manager

for

purposes

of

selecting

a

qualified

unaffiliated

sub-

advisor

for

a

Fund.

The

Board

considered

the

Manager’s

due

diligence

process

for

monitoring

and

replacing

Sub-Advisors

and

for

monitoring

the

investment

performance

of

the

Manager.

The

Board

also

considered

the

compliance

program

established

by

the

Manager

for

the

Funds,

the

quality

of

that

program

and

the

level

of

compliance

attained

by

the

Funds.

The

Board

noted

that

they

had

previously

reviewed

the

annual

best

execution

and

soft

dollar

reports

and

information

regarding

the

research

payment

accounts

for

applicable

Funds

and

included

those

findings

in

their

consideration

of

the

renewal

of

the

Advisory

Agreements.

Based

upon

all

relevant

factors,

the

Board

concluded

that

the

nature,

quality

and

extent

of

the

services

provided

by

the

Manager

347

to

the

Funds

under

each

Management

Agreement

were

satisfactory.

Investment

Performance

The

Board

reviewed

each

Fund’s

investment

performance

over

longer-term

periods,

reviewing

both

the

investment

return

during

the

three-year

period

ended

March

31,

2022

and

the

blended

investment

return

(50%/50%)

of

the

three-

and

five-year

periods

ended

March

31,

2022,

and

compared

those

returns

to

various

agreed-upon

performance

measures,

including

peer-group

data

based

upon

a

broad-based,

industry

category

determined

by

Morningstar

Direct

data.

For

Funds

or

Sub-Advisors

that

did

not

have

a

three-year

or

five-year

performance

history,

the

Board

reviewed

performance

for

a

one-year

or

three-year

period

ended

March

31,

2022,

respectively,

if

available.

The

Board

also

compared

each

Fund’s

investment

performance

over

the

one-,

three-

and

five-year

periods

ended

March

31,

2022,

as

available,

to

one

or

more

relevant

benchmark

indices.

The

Board

noted

that

certain

Funds

had

commenced

operations

recently

and,

accordingly,

no

or

limited

performance

information

was

considered.

The

Board

also

considered

whether

investment

results

were

consistent

with

a

Fund’s

investment

objective(s)

and

policies.

For

most

Funds,

the

Board

concluded

that

the

Fund’s

investment

returns

met

acceptable

levels

of

investment

performance.

There

were

certain

Funds,

and

certain

Sub-Advisors

for

multi-manager

Funds,

that

had

not

attained

during

the

relevant

period(s)

a

level

of

investment

performance

considered

satisfactory

by

the

Board.

For

such

Funds,

the

Board

also

considered

other

factors,

such

as

the

longer-term

performance

of

each

such

Fund

or

Sub-Advisor,

remedial

efforts

being

taken

to

improve

performance

and/or

the

Manager’s

explanation

for

the

performance

of

such

Fund

or

Sub-Advisor.

The

Board

considered

the

Manager’s

due

diligence

process

for

evaluating

the

performance

of

all

Funds

and

all

Sub-Advisors,

for

which

they

received

regular

reporting,

and

concluded

that

the

Manager

has

in

place

an

effective

due

diligence

process

to

monitor

investment

performance,

to

encourage

remedial

action

and

to

make

changes

in

the

Sub-Advisors

at

the

appropriate

time,

if

necessary.

Investment

Management

Fees

The

Board

considered

each

Fund’s

contractual

and

effective

management

fee

rates.

For

each

Fund,

the

Board

received

certain

information

from

Broadridge.

For

Funds

the

Board

received

information

comparing

each

Fund’s

(1)

contractual

management

fee

rate

at

current

asset

levels

and

at

theoretical

asset

levels,

(2)

effective

net

management

fee

rate

(after

any

fee

waivers)

at

average

fiscal-year

asset

levels,

(3)

actual

non-management

expense

rate

at

average

fiscal-year

asset

levels,

and

(4)

total

net

expense

ratio

(including,

as

applicable,

acquired

fund

fees

and

expenses

and

after

any

expense

caps

or

fee

waivers)

at

average

fiscal-year

asset

levels

for

Class

1

shares

of

the

Funds,

in

each

case

as

available,

to

investment

advisory

fee

rates,

non-management

expense

rates

and

expense

ratios

of

funds

in

a

peer

group

selected

by

Broadridge

(“Expense

Group”),

and,

if

available,

a

broad-based,

industry

category

defined

by

Broadridge

(“Expense

Universe”).

For

Funds

that

did

not

offer

Class

1

shares

or

for

which

Class

1

shares

represented

less

than

5%

of

the

Fund’s

total

assets,

comparative

fee

and

expense

information

was

provided

based

upon

Class

2

shares

(or

Class

3

shares

if

the

Fund

does

not

issue

Class

2

shares).

In

evaluating

the

contractual

and

effective

management

fee

rates,

the

Board

considered

a

variety

of

factors,

including

the

contractual

and

effective

fee

rates,

breakpoints,

comparison

to

fee

rates

of

peer

group

funds

and

other

funds

and

non-fund

accounts

managed

by

the

Manager,

sub-advisory

fee

rates

paid,

services

provided,

investment

performance,

total

net

expense

ratios,

profitability,

the

existence

and

sharing

of

economies

of

scale,

fall-out

benefits

and

expense

caps

and

fee

waivers.

The

Board

considered

that

certain

Principal

Funds,

Inc.

funds

with

similar

investment

strategies

and

policies

as

the

Funds

have

different

management

fee

schedules

and

noted

the

reasons

cited

by

the

Manager

for

the

differing

fee

rates.

In

reviewing

the

fees

of

other

accounts

managed

by

the

Manager,

the

Board

considered

information

provided

by

the

Manager

regarding

differences

between

the

services

provided

to

the

Funds

and

the

services

provided

to

such

other

accounts.

For

most

Funds,

effective

net

management

fee

rates

were

within

the

third

quartile

or

better

when

compared

to

their

Expense

Group.

For

some

Funds,

although

effective

net

management

fee

rates

were

higher

than

the

third

quartile,

total

net

expense

ratios

were

within

the

third

quartile

or

better.

With

respect

to

the

PVC

Principal

LifeTime

Accounts,

the

Board

noted

that

the

Funds

do

not

pay

Fund-level

management

fees

and

reviewed

the

actual

non-management

expenses

of

the

Funds.

The

Board

reviewed

the

total

net

expense

ratios

of

the

Funds,

including

acquired

fund

fees

and

expenses,

and

noted

that

the

total

net

expense

ratio,

including

acquired

fund

fees

and

expenses,

for

Class

1

shares

of

each

of

the

PVC

Principal

LifeTime

Accounts

was

in

the

third

quartile

or

better

in

the

Expense

Group

and

that

the

total

net

expense

ratio,

including

acquired

fund

fees

and

expenses.

With

regard

to

PVC

LargeCap

S&P

500

Managed

Volatility

Index

Account,

the

Board

noted

that

the

effective

net

management

348

fee

rate

and

the

total

net

expense

ratio

on

the

basis

of

Class

1

shares

were

higher

than

third

quartile

(both

were

at

the

99th

percentile)

in

the

Expense

Group.

The

Board

accepted

the

Manager’s

proposal

to

amend

the

management

fee

schedule

for

the

Fund

to

reduce

the

effective

management

fee

rate

payable

at

all

asset

levels

and

considered

the

pro

forma

effect

of

the

reduced

management

fee

schedule

on

the

rankings

of

the

Fund’s

effective

net

management

fee

rate

and

total

net

expense

ratio

on

the

basis

of

Class

1

shares

in

the

Expense

Group,

noting

that

the

Fund’s

effective

net

management

fee

rate

would

move

to

the

71st

percentile

and

the

Fund’s

total

net

expense

ratio

would

move

to

the

57th

percentile.

Considering

all

relevant

factors,

including

that

the

other

funds

in

the

Expense

Group

did

not

include

the

additional

feature

of

a

volatility

management

strategy

and

that

the

Fund’s

performance

was

in

the

third

quartile

of

its

Performance

Universe

for

each

of

the

three-year

and

blended

three-

and

five-year

periods

ended

March

31,

2022

(56th

and

54th

percentiles,

respectively),

the

Board

concluded

that

the

Management

Agreement,

as

amended,

should

be

renewed.

The

Board

also

considered

the

expense

caps

and

fee

waivers

that

would

be

in

place

with

respect

to

certain

Funds

and

share

classes.

The

list

of

agreed

upon

expense

caps

and

fee

waivers

is

the

result

of

the

Manager’s

proposals

to

extend

the

expense

caps

and

fee

waivers

for

certain

Funds

and

share

classes

and

to

terminate

the

expense

caps

and

fee

waivers

for

certain

Funds

and

share

classes

that

are

both

currently

operating

and

projected

to

operate

below

current

applicable

expense

caps.

With

regard

to

each

of

the

PVC

Equity

Income

Account

and

PVC

MidCap

Account,

the

Board

accepted

management’s

proposal

to

amend

the

Management

Agreement

for

the

Fund

to

add

one

or

more

new

breakpoints

to

the

management

fee

schedule

and

considered

the

new

breakpoint

or

breakpoints

in

concluding

that

the

Management

Agreement,

as

amended,

should

be

renewed.

With

regard

to

each

of

the

PVC

Short

Term

Income

Account

and

PVC

LargeCap

S&P

500

Index

Account,

the

Board

accepted

management’s

proposal

to

amend

the

management

fee

schedule

for

the

Fund

to

reduce

the

effective

management

fee

rate

payable

at

all

asset

levels

and

considered

this

fee

reduction

in

concluding

that

the

Management

Agreement,

as

amended,

should

be

renewed.

Profitability

The

Board

reviewed

detailed

information

regarding

revenues

the

Manager,

received

under

the

Management

Agreements

and

the

estimated

direct

and

indirect

costs

incurred

in

providing

to

each

Fund

the

services

described

in

the

applicable

Management

Agreements

for

the

year

ended

December

31,

2021.

The

Board

also

considered

the

returns

on

revenue

generated

in

connection

with

the

payment

of

sub-advisory

fees

to

affiliated

Sub-Advisors

(Principal-REI

and

Spectrum)

and

the

aggregated

return

on

revenue

to

the

Manager

and

its

affiliates

for

the

year

ended

December

31,

2021.

The

Board

concluded

that

the

management

fee

for

each

Fund

was

reasonable,

taking

into

account

the

profitability

information

presented

by

the

Manager.

Economies

of

Scale

The

Board

considered

whether

there

are

economies

of

scale

with

respect

to

the

management

of

each

Fund

and

whether

the

Funds

benefit

from

any

such

economies

of

scale.

The

Board

considered

the

Manager’s

biennial

breakpoint

analysis

that

was

received

by

the

Board

in

March

2022

and

the

Manager’s

representation

that

Funds

are

initially

priced

as

though

the

Fund

had

reached

scale,

reflecting

a

sharing

of

economies

of

scale.

The

Board

then

reviewed

the

levels

at

which

breakpoints

occur,

the

incremental

declines

in

management

fee

rates

at

each

breakpoint

and

the

amount

of

fee

reductions

that

had

been

provided

to

shareholders

as

a

result

of

these

breakpoints.

The

Board

considered

cost

saving

passed

along

to

the

Funds

as

a

result

of

certain

expense

caps

and

fee

waivers.

The

Board

considered

whether

the

effective

management

fee

rate

for

each

Fund

under

the

applicable

Management

Agreement

is

reasonable

in

relation

to

the

asset

size

of

such

Fund.

The

Board

also

noted

management’s

explanation

of

efficiencies

in

the

Manager’s

cost

structure.

The

Board

concluded

that

the

fee

schedule

for

each

Fund

reflects

an

appropriate

level

of

sharing

of

any

economies

of

scale.

The

Board

noted

that

the

Principal

LifeTime

Accounts

do

not

directly

pay

management

fees,

although

shareholders

bear

a

portion

of

the

cost

of

the

management

fees

at

the

underlying

fund

level

as

reflected

in

the

acquired

fund

fees

and

expenses.

The

Board

also

noted

that

the

management

fees

for

the

Bond

Market

Index

Account,

Diversified

Balanced

Account,

the

Diversified

Balanced

Managed

Volatility

Account,

the

Diversified

Balanced

Volatility

Control

Account,

the

Diversified

Growth

Account,

the

Diversified

Growth

Managed

Volatility

Account,

the

Diversified

Growth

Volatility

Control

Account,

and

the

Diversified

Income

Account

do

not

include

breakpoints,

but

each

such

Fund

has

a

relatively

low

management

fee

rate

(25

basis

points

or

less)

on

all

Fund

assets.

Considering

all

relevant

factors,

including

the

level

of

the

fee,

the

Board

determined

that

no

breakpoints

were

necessary

at

this

time.

The

Board

further

determined

that

no

breakpoints

are

necessary

at

this

time

for

the

349

LargeCap

S&P

500

Managed

Volatility

Index

Account

due,

among

other

factors,

to

their

current

asset

levels

and

taking

into

account

historical

and/or

pro

forma

levels

of

profitability

to

the

Manager.

Special

Circumstances

For

certain

Funds,

in

reaching

the

conclusion

that

the

Management

Agreement

should

be

renewed,

the

Board

included

within

their

considerations

certain

other

actions

taken

by

the

Board.

With

regard

to

the

PVC

LifeTime

2010

Account,

the

Board

noted

that

the

Board

had

approved

the

reorganization

of

PVC

LifeTime

2010

Account

into

PVC

Principal

Lifetime

Strategic

Account.

The

Board

considered

that

the

renewal

of

the

Management

Agreement

for

the

PVC

LifeTime

2010

Account

would

allow

the

Fund

to

operate

until

completion

of

its

reorganization

and

to

provide

for

continuous

operation

of

the

Fund

going

forward

in

the

event

Fund

shareholders

do

not

approve

the

reorganization.

Sub-Advisory

Agreements,

Economies

of

Scale

and

Profitability

For

each

sub-advised

Fund,

the

Board

considered

the

sub-advisory

fees,

noting

that

the

Manager

compensates

each

Sub-Advisor

from

its

own

management

fee,

so

that

shareholders

pay

only

the

management

fee.

Nature,

Quality

and

Extent

of

Services

The

Board

considered

the

nature,

quality

and

extent

of

the

services

provided

under

each

Sub-Advisory

Agreement.

The

Board

considered

the

reputation,

qualifications

and

background

of

the

Sub-Advisor,

the

investment

approach

of

the

Sub-Advisor,

the

experience

and

skills

of

investment

personnel

responsible

for

the

day-to-day

management

of

each

Fund

and

the

resources

made

available

to

such

personnel.

The

Board

also

considered

the

Sub-Advisors’

compliance

with

investment

policies

and

general

legal

compliance.

Based

upon

all

relevant

factors,

the

Board

concluded

that

the

nature,

quality

and

extent

of

the

services

provided

by

the

Sub-Advisors

to

the

sub-advised

Funds

under

the

Sub-Advisory

Agreements

are

satisfactory.

Investment

Performance

As

to

each

sub-advised

Fund,

the

Manager

had

advised

the

Board

that

the

investment

services

delivered

by

each

Sub-Advisor

to

the

Fund

were

reasonable.

Based

upon

all

relevant

factors,

the

Board

concluded

that

each

Sub-Advisor

is

qualified

and

that

either:

(1)

the

investment

performance

of

the

Sub-Advisor

met

acceptable

levels

of

investment

performance;

or

(2)

although

the

Fund

experienced

underperformance

from

the

applicable

Sub-Advisor,

based

upon

that

Fund’s

particular

circumstances

or

in

light

of

remedial

efforts

being

taken

to

improve

performance,

as

applicable,

it

was

in

the

best

interests

of

the

Fund

to

continue

to

closely

monitor

performance

and

to

renew

the

Sub-Advisory

Agreement.

In

each

case

involving

underperformance,

the

Board

concluded

that

the

Manager

was

providing

effective

monitoring.

Fees,

Economies

of

Scale

and

Profitability

For

each

sub-advised

Fund,

the

Board

considered

the

sub-advisory

fee

rates,

noting

that

the

Manager

compensates

each

Sub-

Advisor

from

its

own

management

fee,

so

that

shareholders

pay

only

the

management

fee.

For

each

sub-advised

Fund,

the

Board

received

certain

information

from

Broadridge

comparing

each

such

Fund’s

sub-advisory

fee

rate

at

current

asset

levels

and

at

theoretical

asset

levels

to

sub-advisory

fee

rates

of

sub-advised

funds

in

the

Expense

Group

and,

if

available,

the

Expense

Universe.

The

Board

considered

whether

there

are

economies

of

scale

with

respect

to

the

sub-advisory

services

provided

to

each

sub-

advised

Fund

and,

if

so,

whether

the

sub-advisory

fees

reflect

such

economies

of

scale

through

breakpoints

in

fees

or

whether

the

sub-advisory

fee

schedule

is

otherwise

appropriate

at

current

asset

levels.

In

addition,

in

evaluating

the

sub-advisory

fees

and

the

factor

of

profitability,

with

respect

to

unaffiliated

Sub-Advisors,

the

Board

considered

that

the

sub-advisory

fee

rate

was

negotiated

at

arm’s

length

between

the

Manager

and

the

Sub-Advisor.

The

Board

considered

the

profitability

of

the

affiliated

Sub-Advisors

in

conjunction

with

their

review

of

the

profitability

of

the

Manager.

On

the

basis

of

the

information

provided,

the

Board

concluded

that

the

sub-advisory

fees

were

reasonable.

Other

Benefits

to

Sub-Advisors

The

Board

also

considered

the

character

and

amount

of

other

incidental

benefits

received

by

each

Sub-Advisor

when

evaluating

the

sub-advisory

fees.

The

Board

considered

as

a

part

of

this

analysis

each

Sub-Advisor’s

brokerage

practices,

soft

dollar

practices

and

use

of

research

payment

accounts.

The

Board

concluded

that,

on

the

basis

of

the

information

provided,

the

350

sub-advisory

fees

were

reasonable.

Overall

Conclusions

Based

upon

all

of

the

information

considered

and

the

conclusions

reached,

the

Board

determined

that

the

terms

of

each

Advisory

Agreement

continue

to

be

fair

and

reasonable

and

that

the

continuation

of

each

Advisory

Agreement,

with

the

actions

proposed

by

the

Manager,

is

in

the

best

interests

of

each

Fund.

351

Special

Meeting

of

Shareholders

Principal

Variable

Contracts

Funds,

Inc.

–

Principal

LifeTime

2010

Account

Held

December

20,

2022

1.

Approval

of

a

Plan

of

Acquisition

providing

for

the

reorganization

of

the

Principal

LifeTime

2010

Account

into

the

Principal

LifeTime

Strategic

Income

Account.

For

Against

Abstain

2,857,142,911

54,057,711

318,314,604

Federal

Income

Tax

Information

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2022

(unaudited)

352

Long-Term

Capital

Gain

Dividends.

Certain

funds

distributed

long-term

capital

gain

dividends

during

the

fiscal

year

ended

December

31,

2022

.

Details

of

designated

long-term

capital

gain

dividends

for

federal

income

tax

purposes

are

shown

in

the

notes

to

financial

statements.

To

the

extent

necessary

to

distribute

such

capital

gains,

certain

funds

may

also

utilize,

and

hereby

designate,

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

Dividends

Paid

Deduction.

Unrecaptured

Section

1250

Gain

Distribution.

Principal

Variable

Contracts

Funds,

Inc.

–

Real

Estate

Securities

Account

distributed

Unrecaptured

Section

1250

gains,

in

addition

to

long-term

capital

gains,

in

2022.

Unrecaptured

Section

1250

gains

are

gains

from

the

sale

of

depreciable

properties

that

are

subject

to

a

maximum

tax

rate

of

25%.

Dividends

Received

Deduction

(“DRD”).

For

corporate

shareholders,

the

percentage

of

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any)

for

the

year

ended

December

31,

2022

,

that

qualifies

for

the

DRD

are

as

follows:

Foreign

Taxes

Paid.

The

following

funds

elect

under

the

Internal

Revenue

Code

Section

(“IRC”)

853

to

pass

through

foreign

taxes

paid

to

their

shareholders.

The

total

amounts

of

foreign

taxes

reported

on

a

per

share

basis

in

the

year

ended

December

31,

2022

,

are

as

follows:

The

funds

may

receive

a

refund

of

taxes

that

can

result

in

a

redetermination

of

historical

foreign

taxes

paid

in

accordance

with

IRC

Section

905(c).

The

Funds

will

provide

by

February

28th

annually,

when

applicable,

any

foreign

tax

redetermination

on

Principal’s

Tax

Center

website

under

the

Principal

Variable

Contracts

Funds,

Inc.’s

Foreign

Tax

Redetermination

Notices.

The

latest

Federal

Income

Tax

Information

is

available

on

Principal's

Tax

Center

website.

Website:

https://www.principal.com/tax-center

Please

consult

your

tax

advisor

if

you

have

any

questions.

DRD

DRD

Blue

Chip

Account

0.00%

Principal

LifeTime

2010

Account

8.47%

Bond

Market

Index

Account

0.00

Principal

LifeTime

2020

Account

9.21

Core

Plus

Bond

Account

0.35

Principal

LifeTime

2030

Account

12.90

Diversified

Balanced

Account

30.55

Principal

LifeTime

2040

Account

16.76

Diversified

Balanced

Managed

Volatility

Account

48.95

Principal

LifeTime

2050

Account

18.57

Diversified

Balanced

Volatility

Control

Account

9.66

Principal

LifeTime

2060

Account

19.52

Diversified

Growth

Account

38.36

Principal

LifeTime

Strategic

Income

Account

7.89

Diversified

Growth

Managed

Volatility

Account

59.10

Real

Estate

Securities

Account

1.71

Diversified

Growth

Volatility

Control

Account

12.44

SAM

Balanced

Portfolio

21.26

Diversified

Income

Account

20.31

SAM

Conservative

Balanced

Portfolio

17.43

Diversified

International

Account

0.00

SAM

Conservative

Growth

Portfolio

25.13

Equity

Income

Account

41.11

SAM

Flexible

Income

Portfolio

12.09

Global

Emerging

Markets

Account

0.00

SAM

Strategic

Growth

Portfolio

29.70

Government

&

High

Quality

Bond

Account

0.00

Short-Term

Income

Account

0.00

LargeCap

Growth

Account

I

38.85

SmallCap

Account

20.07

LargeCap

S&P

500

Index

Account

96.04

U.S.

LargeCap

Buffer

January

Account

0.00

LargeCap

S&P

500

Managed

Volatility

Index

Account

100.00

U.S.

LargeCap

Buffer

July

Account

100.00

MidCap

Account

100.00

U.S.

LargeCap

Buffer

October

Account

100.00

Principal

Capital

Appreciation

Account

42.40

Foreign

Taxes

Per

Share

Foreign

Source

Income

Foreign

Taxes

Per

Share

Foreign

Source

Income

Diversified

Balanced

Account

$

0.0023

8.32%

Principal

LifeTime

2030

Account

$

0.0065

14.35%

Diversified

Balanced

Managed

Volatility

Account

0.0018

7.26

Principal

LifeTime

2040

Account

0.0111

19.53

Diversified

Balanced

Volatility

Control

Account

0.0015

3.50

Principal

LifeTime

2050

Account

0.0126

20.94

Diversified

Growth

Account

0.0038

11.77

Principal

LifeTime

2060

Account

0.0116

22.48

Diversified

Growth

Managed

Volatility

Account

0.0028

9.92

Principal

LifeTime

Strategic

Income

Account

0.0033

8.79

Diversified

Growth

Volatility

Control

Account

0.0022

4.93

SAM

Balanced

Portfolio

0.0059

10.39

Diversified

Income

Account

0.0011

4.39

SAM

Conservative

Balanced

Portfolio

0.0029

9.48

Diversified

International

Account

0.0366

71.00

SAM

Conservative

Growth

Portfolio

0.0098

11.85

Global

Emerging

Markets

Account

0.0473

51.10

SAM

Flexible

Income

Portfolio

0.0013

4.25

Principal

LifeTime

2010

Account

0.0032

9.68

SAM

Strategic

Growth

Portfolio

0.0117

17.06

Principal

LifeTime

2020

Account

0.0055

10.49

Principal.com

This

report

must

be

preceded

or

accompanied

by

a

current

prospectus

for

the

Principal

Variable

Contracts

Funds,

Inc.

Principal

Variable

Contracts

Funds,

Inc.,

are

distributed

by

Principal

Funds

Distributor,

Inc.

Principal

®

,

Principal

Financial

Group

®

,

and

Principal

and

the

logomark

design

are

registered

trademarks

of

Principal

Financial

Services,

Inc.,

a

Principal

Financial

Group

company,

in

the

United

States

and

are

trademarks

and

services

marks

of

Principal

Financial

Services,

Inc.,

in

various

countries

around

the

world.

©

2022

Principal

Financial

Services,

Inc.

|

MM1290-28

|

02/2023

|

2628244

ITEM 2 – CODE OF ETHICS

(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended, as described in Item 2(c) of Form N-CSR, its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit hereto in response to Item 13(a)(1).

ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT

The Registrant's Board has determined that Elizabeth Nickels, a member of the Registrant's Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item.

ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a) Audit Fees.

Ernst & Young is the principal accountant for the registrant. As such, Ernst & Young has audited the financial statements of the registrant and reviewed regulatory filings that include those financial statements. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional services.

December 31, 2021 - $539,200

December 31, 2022 - $645,236

(b) Audit-Related Fees.

Ernst & Young provided audit-related services to the registrant that are not included in response to item 4(a). Those services related to the review of Form N-1A and Form N-14. Ernst & Young has billed the following amounts for those services.

December 31, 2021 - $0

December 31, 2022 - $15,550

Ernst &Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(c) Tax Fees.

Ernst & Young prepares and reviews the federal income tax returns and federal excise tax returns of the registrant. In connection with this service, Ernst & Young prepares and reviews the calculation of the registrant’s dividend distributions that are included as deductions on the tax returns. Ernst & Young also provides services to identify passive foreign investment companies. Ernst & Young also provides services to understand and comply with tax laws in certain foreign countries and services to determine the taxability of corporate actions. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional tax services.

December 31, 2021 - $173,379

December 31, 2022 - $134,149

Ernst & Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(d) All Other Fees.

Ernst & Young has not billed the registrant for other products or services during the last two fiscal years.

Ernst & Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(e) (1) Audit Committee Pre-Approval Policy.

  The audit committee of the registrant has adopted the following pre-approval policy:

Policy on Auditor Independence

The purpose of this policy is to ensure the independence of the Principal Funds' primary independent auditor.  This policy is established by the Audit Committee (the "Committee") of the Boards of Directors of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. and the Board of Trustees of Principal Exchange-Traded Funds and Principal Diversified Select Real Asset Fund (the “Funds”) (the “Boards of the Funds”) effective for all engagements of the primary independent auditor.

1.         The primary independent auditor, its subsidiaries and affiliates shall not provide Prohibited Services to the Funds.  For the purposes of this policy, Prohibited Services are:

·

Services that are subject to audit procedure during a financial statement audit;

·

Services where the auditor would act on behalf of management;

·

Services where the auditor is an advocate to the client's position in an adversarial proceeding;

·

Bookkeeping or other services related to the accounting records or financial statements of the Funds, its subsidiaries and affiliates;

·

Financial information systems design and implementation;

·

Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

·

Actuarial services;

·

Internal audit functions or human resources;

·

Broker or dealer, investment advisor, or investment banking services;

·

Legal services and expert services unrelated to the audit;

·

Tax planning services related to listed, confidential and aggressive transactions;

·

Personal tax planning services to individuals in a financial reporting oversight role with regard to the Funds (other than members of the Boards of the Funds who are not also officers of the Funds), including the immediate family members of such individuals;

·

Any other service that the Public Company Accounting Oversight Board (PCAOB) determines, by regulation, is impermissible.

2.         (A) All services the primary independent auditor, its subsidiaries and affiliates provide to the Funds, and (B) Audit services, including audits of annual financial statements, audits of acquired or divested businesses or review of regulatory filings, any independent auditor provides, shall be approved by the Committee in advance in accordance with the following procedure:

Each quarter, Management will present to the Committee for pre-approval, a detailed description of each particular service, excluding tax services, for which pre-approval is sought and a range of fees for such service.  The Committee may delegate pre-approval authority to one or more of its members provided such delegated member(s) shall present a report of any services approved to the full Committee at its next regularly scheduled meeting.  The Committee Chairperson shall have pre-approval authority for changes to any range of fees applicable to services the Committee previously approved and for new services and the range of fees for such services that arise between regularly scheduled Committee meetings.

Similarly, the primary independent auditor will present to the Committee for pre-approval a written description of the nature and scope of all tax services not expressly prohibited, including the fee arrangements for such services, and the potential effects of such services on the audit firm’s independence.

In considering whether to pre-approve the primary independent auditor’s provision of non-audit services, the Committee will consider whether the services are compatible with the maintenance of such auditor's independence.  The Committee will also consider whether the primary independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds' business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Funds' ability to manage or control risk or improve audit quality.

3.         The provisions of this policy shall apply to all audit and non-audit services provided directly to the Funds.  Additionally, the provisions of this policy shall apply to non-audit services provided to Principal Global Investors, LLC (“PGI”) or an affiliate of PGI that provides ongoing services to the Funds if the engagement relates directly to the operations and financial reporting of the Funds.

4.         Not less than annually, the primary independent auditor shall report to the Committee in writing all relationships that may reasonably be thought to bear on independence between the auditor and the Funds or persons in financial reporting oversight roles with respect to any services provided by the auditor, its subsidiaries or affiliates as of the date of the communication, pursuant to Rule 3526 of the PCAOB.  The primary independent auditor shall discuss with the Committee the potential effects of such relationships on the independence of the auditor.  In addition, the primary independent auditor shall affirm, in writing, that, as of the date of the communication, it is independent within the meaning of the federal securities laws and Rule 3520 of the PCAOB.

5.         The Committee shall ensure that the lead (or coordinating) audit partners, as well as the reviewing audit partner, of the Funds' primary independent auditor are rotated at least every five years and subject upon rotation to a five year "time out" period.  All other audit partners of the primary independent auditor, excluding partners who simply consult with others on the audit engagement regarding technical issues, shall rotate after seven years and be subject upon rotation to a two year "time out" period.

6.

Neither the Funds nor PGI may hire or promote any former partner, principal, shareholder or professional employee (Former Employee) of the primary independent auditor into a financial reporting oversight role unless the Former Employee (1) has severed his/her economic interest in the independent audit firm, and (2) was not a member of the audit engagement team for the Funds during the one year period preceding the date that the audit procedures began for the fiscal period in which the Funds or PGI proposes to hire or promote the Former Employee.  Neither the Funds nor PGI shall, without prior written consent of the primary independent auditor, hire or promote any Former Employee into a role not prohibited above if the Former Employee had provided any services to the Funds or PGI during the 12 months preceding the date of filing of the Funds' most recent annual report with the SEC.  Upon termination of the primary independent auditor, the Funds or PGI shall not, without prior written consent of the former primary independent auditor, hire or promote any Former Employee for a period of up to 12 months from termination.

7.

For persons recently promoted or hired into a financial reporting oversight role (other than members of the Boards of the Funds who are not also officers of the Funds), any personal tax planning services pursuant to an engagement that was in progress before the hiring or promotion and provided by the primary independent auditor must be completed on or before 180 days after the hiring or promotion.

8.

The phrase "financial reporting oversight role" means a role in which a person is in a position to exercise influence over the contents of the financial statements or anyone who prepares them, such as a member of the board of directors or similar management or governing body, chief executive officer, president, chief operating officer, chief financial officer, counsel, controller, chief internal auditor, or any equivalent positions.

(Adopted by the Audit Committee of the Boards of the Funds on March 10, 2020).

(End of policy)

(e) (2) Pre-Approval Waivers.

There were no services provided to the registrant by Ernst & Young that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

Substantially all work in connection with the audit of the registrant’s financial statements was performed by full-time employees of Ernst & Young.

(g)

The aggregate non-audit fees Ernst & Young billed to the registrant, the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant for each of registrant's last two fiscal years were as follows.

December 31, 2021 - $173,379

December 31, 2022 - $149,699

Ernst & Young billed Principal Shareholder Services and Principal Funds Distributor, Inc., and Principal Global Investors, LLC an aggregate of the following amounts for the last two years:

	2022	2021
Principal Shareholder Services	$4,725	$4,500
Principal Funds Distributor, Inc.	$4,715	$4,490
Principal Global Investors, LLC	$175,770	$106,900

(h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS

(a) Not applicable.

(b) 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 period covered by this report 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 required to be disclosed under Item 2 of Form N-CSR attached hereto as

Exhibit 99.CODE ETH

.

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto as

Exhibit 99.CERT

.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940 is 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 02/13/2023

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 02/13/2023

By /s/ Michael Scholten

            Michael Scholten, Chief Financial Officer

Date 02/13/2023