Government & High Quality Bond Fund f/k/a Mortgage Securities Fund (Third Prospectus Summary) | Government & High Quality Bond Fund f/k/a Mortgage Securities Fund

Government & High Quality Bond Fund

Objective:

The Fund seeks to provide a high level of current income consistent with safety
and liquidity.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder Fees (fees paid directly from your investment): None

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

Annual Fund Operating Expenses Government & High Quality Bond Fund f/k/a Mortgage Securities Fund		Class R-1	Class R-2	Class R-3	Class R-4	Class R-5
Management Fees		0.50%	0.50%	0.50%	0.50%	0.50%
Distribution and/or Service (12b-1) Fees		0.35%	0.30%	0.25%	0.10%
Other Expenses		0.54%	0.46%	0.33%	0.29%	0.27%
Total Annual Fund Operating Expenses		1.39%	1.26%	1.08%	0.89%	0.77%
Expense Reimbursement	[1]	0.10%	0.10%	0.10%	0.10%	0.10%
Total Annual Fund Operating Expense after Expense Reimbursement		1.29%	1.16%	0.98%	0.79%	0.67%

Example

This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that
the Fund's operating expenses remain the same. Although your actual costs may
be higher or lower, based on these assumptions your costs would be:

Expense Example Government & High Quality Bond Fund f/k/a Mortgage Securities Fund (USD $)	Expense Example, With Redemption, 1 Year	Expense Example, With Redemption, 3 Years	Expense Example, With Redemption, 5 Years	Expense Example, With Redemption, 10 Years
Class R-1	131	423	744	1,653
Class R-2	118	383	675	1,507
Class R-3	100	316	552	1,229
Class R-4	81	267	476	1,080
Class R-5	68	229	411	938

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate
may indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the Fund's performance.
During the most recent fiscal year, the Fund's portfolio turnover rate was
104.7% of the average value of its portfolio.

Principal Investment Strategies

Under normal circumstances, the Fund invests at least 80% of its net assets, plus
borrowings for investment purposes, in securities issued by the U.S. government,
its agencies or instrumentalities or securities that are rated AAA by S&P, AAA by
Fitch, or Aaa by Moody's, including but not limited to mortgage securities such
as agency and non-agency collateralized mortgage obligations, and other obligations
that are secured by mortgages or mortgage-backed securities. Under normal
circumstances, the Fund maintains an average portfolio duration between one and
4.5 years. The Fund may also invest in mortgage-backed securities that are not
issued by the U.S. government, its agencies or instrumentalities or rated AAA by S&P,
AAA by Fitch, or Aaa by Moody's, including collateralized mortgage obligations, and
in other obligations that are secured by mortgages or mortgage-backed securities.
The Fund may actively trade portfolio securities.

Principal Risks

The Fund may be an appropriate investment for investors seeking diversification
by investing in a fixed-income mutual fund.

The value of your investment in the Fund changes with the value of the Fund's
investments. Many factors affect that value, and it is possible to lose money by
investing in the Fund. An investment in the Fund is not a deposit of a bank and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. The principal risks of investing in the Fund, in
alphabetical order, are:

Active Trading Risk. Actively trading portfolio securities may accelerate
realization of taxable gains and losses, lower fund performance and may result
in high portfolio turnover rates and increased brokerage costs.

Fixed-Income Securities Risk. Fixed-income securities are subject to interest
rate risk and credit quality risk. The market value of fixed-income securities
generally declines when interest rates rise, and an issuer of fixed-income
securities could default on its payment obligations.

Portfolio Duration Risk. Portfolio duration is a measure of the expected life of
a fixed-income security and its sensitivity to changes in interest rates. The
longer a fund's average portfolio duration, the more sensitive the fund will be
to changes in interest rates.

Prepayment Risk. Unscheduled prepayments on mortgage-backed and asset-backed
securities may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension risk).

Real Estate Securities Risk. Real estate securities are subject to the risks
associated with direct ownership of real estate, including declines in value,
adverse economic conditions, increases in expenses, regulatory changes and
environmental problems.

Risk of Being an Underlying Fund. A fund is subject to the risk of being an
underlying fund to the extent that a fund of funds invests in the fund. An
underlying fund of a fund of funds may experience relatively large redemptions
or investments as the fund of funds periodically reallocates or rebalances its
assets. These transactions may cause the underlying fund to sell portfolio
securities to meet such redemptions, or to invest cash from such investments, at
times it would not otherwise do so, and may as a result increase transaction
costs and adversely affect underlying fund performance.

U.S. Government Securities Risk. Yields available from U.S. government
securities are generally lower than yields from many other fixed-income
securities.

U.S. Government Sponsored Securities Risk. Securities issued by U.S.
government-sponsored or -chartered enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S. Treasury.

Performance

The following information provides an indication of the risks of investing in
the Fund. The bar chart shows the investment returns of the Fund's Class R-2
shares for each full calendar year of operations for 10 years (or, if shorter,
the life of the Fund). The table shows, for each share class of the Fund and for
the last one, five, and ten calendar year periods (or, if shorter, the life of
the Fund), how the Fund's average annual total returns compare to the returns of
one or more broad-based market indices. Past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the
future. You may get updated performance information online at www.principal.com
or by calling 1-800-222-5852.

The Fund commenced operations after succeeding to the operations of another fund
on January 12, 2007. Performance for periods prior to that date is based on the
performance of the predecessor fund which commenced operations on May 4, 1984.
On March 1, 2004, the investment policies of the predecessor fund were modified.
As a result, the Fund's performance for periods prior to that date may not be
representative of the performance it would have achieved had its current
investment policies been in place. The R-1, R-2, R-3, R-4, and R-5 Class shares
were first sold on December 15, 2008.

Total Returns as of December 31 each year (Class R-2 shares)

Highest return for a quarter during the period of       Q2 '02       3.44%
the bar chart above:
Lowest return for a quarter during the period of the    Q2 '04      -1.29%
bar chart above:

Average Annual Total Returns For the periods ended December 31, 2011

Average Annual Total Returns Government & High Quality Bond Fund f/k/a Mortgage Securities Fund	Average Annual Returns, Label	Average Annual Returns, 1 Year	Average Annual Returns, 5 Years	Average Annual Returns, 10 Years
Class R-1	Class R-1 Return Before Taxes	5.31%	5.33%	4.47%
Class R-2	Class R-2 Return Before Taxes	5.36%	5.45%	4.60%
Class R-3	Class R-3 Return Before Taxes	5.64%	5.64%	4.78%
Class R-4	Class R-4 Return Before Taxes	5.84%	5.81%	4.89%
Class R-5	Class R-5 Return Before Taxes	5.96%	5.88%	4.93%
After Taxes on Distributions Class R-1	Class R-1 Return After Taxes on Distributions	4.17%	3.89%	2.90%
After Taxes on Distributions and Sales Class R-1	Class R-1 Return After Taxes on Distribution and Sale of Fund Shares	3.43%	3.70%	2.88%
Barclays Capital MBS Fixed Rate Index	Barclays Capital MBS Fixed Rate Index (reflects no deduction for fees, expenses or taxes)	6.32%	6.61%	5.72%

After-tax returns are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor's tax situation and may differ
from those shown. The after-tax returns shown are not relevant to investors who
hold their Fund shares through tax-deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are shown for Class R-1
shares only and would be different for Class R-2, R-3, R-4 and R-5 shares.

[1] Principal Management Corporation ("Principal"), the investment advisor has contractually agreed to limit the Fund's expenses attributable to Class R-1, R-2, R-3, R-4, and R-5 shares and, if necessary, pay expenses normally payable by the Fund, excluding interest expense, through the period ending February 28, 2014. The expense limit will maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 1.29% for Class R-1, 1.16% for Class R-2, 0.98% for Class R-3, 0.79% for Class R-4, and 0.67% for Class R-5. It is expected that the expense limit will continue through the period disclosed; however, Principal Funds, Inc. and Principal, the parties to the agreement may agree to terminate the expense limit prior to the end of the period.