SUB-SUB-ADVISORY AGREEMENT FOR
PRINCIPAL FUNDS, INC. --INTERNATIONAL FUND I
THIS SUB-SUB-ADVISORY AGREEMENT is made as of this 11th day of January,
2010, among SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC.,
(“SIMNA”) a corporation organized under the laws of the State of Delaware with its principal
place of business at 875 Third Avenue, 22nd Floor, New York 10022, and SCHRODER
INVESTMENT MANAGEMENT NORTH AMERICA LIMITED (“SIMNA Limited”) a UK
corporation with its principal office and place of business at 31 Gresham Street, London, UK
EC2V 7QA, and agreed and approved by PRINCIPAL MANAGEMENT CORPORATION
(“PMC”) a corporation organized under the laws of the State of Iowa.
W I T N E S S E T H
WHEREAS, PMC has retained SIMNA as its sub-adviser to render investment advisory
services to the International Fund I (the “Fund”), a series of Principal Funds, Inc., a Maryland
Corporation (the “Corporation”) registered as an investment company under the Investment
Company Act of 1940, as amended (the "1940 Act") pursuant to a Sub-Advisory Agreement
dated as of the date hereof (the “Principal Advisory Agreement”); and
WHEREAS, SIMNA desires to employ SIMNA Limited as its investment sub-adviser,
and SIMNA Limited is willing to render investment sub-advisory services to SIMNA, subject to
and in accordance with the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the mutual promises and undertakings set forth
in this Agreement, PMC, SIMNA and SIMNA Limited hereby agree as follows:
1.	Appointment of SIMNA Limited. SIMNA hereby employs SIMNA Limited as
investment sub-adviser for the assets of the Fund, and PMC hereby agrees to such appointment,
on the terms and conditions set forth herein, and subject to the direction of SIMNA. SIMNA
Limited accepts such employment and agrees to render the services herein set forth, for the
compensation herein provided.
2.	Duties of SIMNA Limited.
(a)	SIMNA employs SIMNA Limited to act as its sub-advisor in managing the
investment and reinvestment of the assets of the Fund in accordance with the Principal Advisory
Agreement; to continuously review, supervise, and administer an investment program for the
Fund; to determine in its discretion the securities to be purchased or sold and the portion of such
assets to be held uninvested; to provide the Corporation (either directly or through SIMNA) with
all records concerning the activities of SIMNA Limited that the Corporation is required to
maintain; and to render or assist SIMNA in rendering regular reports to the Corporation’s
officers and the Board of Directors concerning the discharge of SIMNA Limited’s
responsibilities hereunder. SIMNA Limited will discharge the foregoing responsibilities subject
to the supervision and oversight of SIMNA, the Corporation’s officers and the Board of
Directors and in compliance with the objective, policies, and limitations set forth in the Fund’s
prospectus and Statement of Additional Information, any additional operating policies or
procedures that the Fund communicates to SIMNA Limited in writing (either directly or through

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