International Emerging Markets Fund (Prospectus Summary): | International Emerging Markets Fund

INTERNATIONAL EMERGING MARKETS FUND    

Supplement dated June 15, 2012

to the Class R-1, Class R-2, Class R-3, Class R-4 and Class R-5 Shares Prospectus

for Principal Funds, Inc.

dated February 29, 2012

(as supplemented on March 16, 2012 and April 23, 2012)

This supplement updates information currently in the Prospectus. Retain this supplement with the Prospectus.  

FUND SUMMARIES

Under the Principal Investment Strategies heading, delete the paragraph that begins “Here, "emerging market country" means any country which is considered” and substitute:    

Here, "emerging market country" means any country which is considered to be an emerging country by the  

international financial community (including the MSCI Emerging Markets Index or has a sovereign debt rating  

of BBB+ or lower based on the lower of S&P and Moody’s ratings). These countries generally include every  

nation in the world except the United States, Canada, Japan, Australia, and New Zealand, and most nations  

located in Western Europe. The Fund will invest in equity securities of small, medium, and large capitalization  

companies.