ncsrfinalretail.htm - Generated by SEC Publisher for SEC Filing

GLOBAL INVESTMENT MANAGEMENT • ASSET ALLOCATION EXPERTISE • RETIREMENT LEADERSHIP

At the October Federal Open Market Committee meeting, the Federal Reserve (the Fed) voted to keep the benchmark interest rate at its current level, but announced that they are preparing for a possible increase in December based on the near balance of their dual mandate of maximum employment and price stability. October data suggests that the U.S. economy is growing and on stable footing. Indications are that recession risk is down, consumer balance sheets are the best in years, the job market remains robust, and the housing market continues to recover.

Globally, concerns about China remain and European growth continues to be slow. However, at the end of October, the European Central Bank reiterated that they would do whatever it takes to support the ongoing recovery in Europe, not only keeping interest rates unchanged, but potentially expanding the current program of quantitative easing.

Because markets tend to fluctuate, we believe the most prudent approach for investing is to select a portfolio allocation that is broadly diversified both across and within asset classes.¹We encourage you to work closely with your financial professional to select and monitor those investments best suited to helping you work toward and realize your financial goals.

Our focus at Principal Funds has always been on consistent, long-term performance for our investors. Our investment strategies cover a wide range of asset classes to help you diversify your portfolio as you save for the future—whether you are investing for goals that are years down the road, or closer at hand.

We strive to maintain a diverse investment lineup that helps meet client and investor needs. To address market interest in active exchange-traded funds (ETFs) and actively managed, multi-asset class strategies, we recently added an additional income-focused portfolio available as an ETF. Additional information on this strategy is available at https://www.principaletfs.com.

At Principal Funds, we're honored to be part of your investment strategy. On behalf of everyone at Principal Funds, I thank you for your business.

¹Asset allocation and diversification do not ensure a profit or protect against a loss. Past performance does not guarantee future results.

With unemployment in the U.S. down to pre-recession levels and the economy showing steady growth, it appears we are at the end of the seven-year era of low-ranging interest rates (between 0 percent and 0.25 percent). However, while economic data at the end of October appeared sufficient to satisfy the Federal Reserve’s dual mandate of low inflation and full employment, the decision made at the October 28 Federal Open Market Committee meeting was to wait until December to consider a rate hike.¹

The unemployment rate has fallen to 5.05 percent (rounded to 5.1 percent).²Wage growth has accelerated and household incomes are growing, with critical growth at the lower and middle-income sectors where expenditures were cut sharply during the recession and were slow to gain headway during the subsequent recovery.

The Consumer Price Index (CPI) for all items was essentially unchanged over the last 12 months, while the CPI less food and energy increased at 1.9 percent overall over the past 12 months, the highest 12-month change since July 2014.²In addition, the rate of savings from the gains due to the drop in oil prices has fallen and it appears that some “windfall” is being spent on new, larger, more expensive, and less fuel efficient vehicles than would have been the case absent the drop in oil prices. Not only are we experiencing auto sales at an 18.2 million annual rate (the fastest pace in more than 10 years) ³, but services and non-durable goods spending has picked up sharply. Further, the Federal Open Market Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate. Real personal consumption expenditures growth over the past five quarters depicts an ongoing consumer spending uptrend, with the second quarter 2015 showing an increase of 3.6 percent.⁴

While the U.S. economy continues to grow overall with the most recent gross domestic product (GDP) report showing 3.9 percent, the same cannot be said of overseas economies.⁴Most dramatically, the Chinese economy has shown a deceleration of economic growth, reducing rates five times in the last year. European growth continues to limp along, and the Volkswagen emissions scandal at the end of September created a huge gap in the strongest economy in Europe. The European Central Bank’s October meeting concluded with a reiteration not only to keep interest rates unchanged but potentially to expand the current program of quantitative easing.⁵

¹The Federal Reserve
²The Bureau of Labor Statistics
³Bloomberg Business, October 1, 2015
⁴The St. Louis Fed
⁵The European Central Bank

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Tobacco exposure contributed to fund performance. Exposure to inverse floaters (adjusts its coupon payment as the interest rate changes) and allocation to healthcare also contributed. Allocation to public utilities and education holdings detracted from performance.

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. Current performance may be lower or higher than the performance shown. For more information, including the most recent month-end performance, visit principalfunds.com, call your financial professional, or call 800-222-5852.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. Class P shares do not have a sales charge. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/28/17 for Class P. Returns displayed are based on net total investment expense.

* 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.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Security selection within mortgage-backed securities, as well as within below-investment-grade and investment-grade corporate bonds contributed. Overweight to asset-backed securities contributed. Overweight to commercial mortgage-backed securities contributed. Duration and curve positioning detracted as the portfolio was short duration relative to the index during times of declining interest rates at the intermediate and long end of the curve. An out-of-index allocation to below-investment-grade corporate bonds, overweight to investment-grade corporate bonds, and underweight to U.S. Treasury securities detracted. Security selection within emerging markets detracted.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A and C. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Stock selection in the United Kingdom contributed, driven by overweight to Taylor Wimpey PLC, as a result of rising home prices, favorable mortgage rates, and supportive government initiatives. Stock selection in the financials sector contributed, driven by an overweight to CK Hutchison Holdings Ltd as a result of the Cheung Kong group restructuring into CK Hutchison Holdings and Cheung Kong Property Holdings being well received by the market resulting in a higher valuation for the combined entity. Stock selection in the consumer discretionary sector contributed, led by an overweight to Dollarama, the leading dollar store operator in Canada. Allocation to Japan detracted, led by an overweight position in OMRON Corporation. Stock selection in the consumer staples industry detracted, led by a position in Aryzta AG, the global leader of par-baked bakery goods. Stock selection in the industrials sector detracted, driven by an overweight position in Canadian Pacific Railway Limited due to weaker economic activity and lower energy related shipments.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. Class P shares do not have a sales charge. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes C and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to Hasbro, Inc. in the consumer discretionary sector was a top contributor as the licensing business that ties merchandise to box-office hits has become a very profitable business segment. Allocation to Kraft Heinz Company contributed as the company outperformed due to the merger between Kraft and Heinz. Allocation to Starbucks Corporation contributed as a result of continued positive execution operationally and financially. Allocation to Crescent Point Energy Corp. detracted due to the decline in oil prices and the weak Canadian dollar. Allocation to Marathon Oil Corporation detracted due to the company's exposure to commodity prices. Allocation to Royal Dutch Shell PLC detracted with the rest of the energy sector as stocks sensitive to commodity prices declined following the drop in oil.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

Colonial First State Asset Management (Australia) Limited; DDJ Capital Management, LLC; Guggenheim Partners Investment Management, LLC; Logan Circle Partners, LP; Post Advisory Group, LLC; Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Reaves Asset Management; Spectrum Asset Management, Inc.; Stone Harbor Investment Partners, LP; Tortoise Capital Advisors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to commercial mortgage-backed securities (CMBS) contributed as the sector benefited from improving real estate fundamentals and strong investor demand for the asset class. Allocation to preferred securities contributed as they performed well in the falling interest rate environment and on the back of solid fundamentals in the banking sector (most issuance in the preferred security sector comes from this sector). Allocation to real estate investment trusts (REITs) contributed due to solid fundamentals, supported by strong labor market growth and modest new supply. Security selection within REITs contributed due to an emphasis on self-storage, which performed well as the recovery in the U.S. housing market is fueling demand for self-storage. Selection within office and hotel REITS also contributed. Allocation to master limited partnerships (MLPs) detracted the most from absolute performance as they were under pressure as falling energy prices led many investors to question the viability of the asset class. Allocation to emerging market debt also detracted as the asset class was swept up in the negative sentiment stemming from falling commodity prices and a slowdown in global growth led by deceleration in China. Within emerging market debt, overweight to Venezuela and underweight to the Ukraine detracted. Allocation to infrastructure equity detracted from performance as infrastructure stocks were under pressure from concerns about rising U.S. interest rates as well as from falling energy prices.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

unmanaged, and individuals cannot invest directly in an index. The primary index changed from the Global Diversified Income Custom Index to the Global Diversified Income Blended Index. The largest component of each index is shown above. The Global Diversified Income Blended Index is composed of 40% Barclays Global Credit Index; 30% Barclays Global High Yield Index; and 30% MSCI ACWI Value Index

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Real Estate Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Overweight to CubeSmart and the entire self-storage sector contributed as fundamentals remained strong due to technology efficiencies. Overweight to Simon Property Group contributed as the company has been able to backfill vacancies with better credit tenants and has increased private market transactions. Allocation to UNITE Group PLC, a student housing provider in the United Kingdom, contributed as a result of strong earnings results, projected record student enrollments, and extremely short supply. Underweight to Macerich Company detracted as the stock continued to perform well on the back of strong core headline results and positive market fundamentals despite the rejection of a potential takeover. Overweight to Pebblebrook Hotels was a top detractor due to weakening demand from transient travelers and visitors from overseas. Overweight to Boardwalk REIT, a Canadian residential company in energy concentrated markets, detracted due to concerns about the impact low oil prices will have on apartment demand in Boardwalk's markets.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes C and P. Returns displayed are based on net total investment expense.

unmanaged, and individuals cannot invest directly in an index. The Fund’s primary benchmark changed from the FTSE EPRA/NAREIT Developed Index to the FTSE EPRA NAREIT Developed Index NR because the FTSE EPRA NAREIT Developed Index NR is net of tax and therefore more appropriate for investors in a taxable mutual fund.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Fund performance during the fiscal year?

Issue selection in Freddie Mac (FHLMC) securities contributed to performance. Underweight to and issue selection in Ginnie Mae (GNMA) securities aided performance as they underperformed other agency mortgages. Issue selection in Fannie Mae (FNMA) securities contributed to performance. An out-of-benchmark allocation to agency commercial mortgage-backed securities (CMBS) was the largest detractor from performance. Underweight to low coupon Fannie Mae (FNMA) and Freddie Mac (FHLMC) securities detracted as they outperformed other agency mortgages. Allocation to cash detracted from performance.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 2.25%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. Class P shares do not have a sales charge. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A, C, and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to Jazz Technologies Inc. contributed. Allocation to Voya contributed as it outperformed over the year as the credit profile improved. Allocation to RKI Exploration & Production, whose bonds were acquired by WPX Energy, contributed. Allocation to Chaparral Energy Inc. detracted as crude prices have moved lower as the market focused on Chinese growth concerns, crude over supply, and equity market volatility. Allocation to Goodman Networks, Inc. detracted as the company continues to be challenged by reduced demand from key customer AT&T. Allocation to Texas Competitive Electric detracted as the company's bankruptcy will take longer than expected and operating results have been negatively impacted by the recent decline in natural gas prices.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

What contributed to or detracted from Fund performance during the fiscal year?

An underweight allocation to the metals and mining subsector within the basic industrials sector aided results. Security selection within metals and mining also contributed. An underweight position to oil field services within the energy sector contributed. An overweight to gaming within the consumer cyclicals sector contributed. An overweight position to independent energy providers detracted, as did security selection within this energy subsector. Underweights to the capital goods, financials, and consumer cyclicals sectors detracted. Overall security selection within utilities detracted.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class A. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Fund performance during the fiscal year?

Security selection in the consumer non-cyclical sector was the largest contributor to performance. Security selection in agency mortgage-backed securities (MBS) contributed significantly. An overweight to and issue selection in the banking sector contributed to performance. An overweight to and issue selection in the energy sector was the largest detractor due to the impact of lower oil prices. Security selection in the communications sector detracted from performance. Overweight to the basic industry sector hindered performance due to the fall in commodity prices.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
BlackRock Financial Management, Inc.

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to long U.S. dollar foreign exchange positioning (especially vs. the euro) and allocation to Italian inflation-linked bonds and breakevens were the primary contributors to active performance. Allocation to New Zealand (outright, and in part vs. U.S.) real rate allocation also contributed. Long U.S. breakeven positioning was the primary detractor. The portfolio's short Japanese nominal positioning and long Japanese breakeven positioning also detracted.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A and C. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Allocation in the Asia and Latin America regions contributed to relative performance. Allocations to India, Mexico, and Taiwan were the most significant contributors. The top individual contributors were overweight to Aurobindo Pharma Ltd, Gruma Sab De CV, Hyosung Corporation, Maruti Suzuki India Limited, and Bank of China. Allocation to the Europe Middle East and Africa region detracted. South Korea, Russia, and Thailand were the most notable detractors during the period. The top individual detractors were overweight to Itau Unibanco Holding SA, Kroton Educacional, Smiles SA, Bb Seguridade Participacoes, and Shinhan Financial Group Co.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A, C, and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Origin Asset Management, LLP

What contributed to or detracted from Fund performance during the fiscal year?

Stock selection within the information technology, materials, and consumer discretionary sectors contributed. From a regional perspective, selection within the United Kingdom (notably housing related) and emerging Asia contributed to relative performance. Lack of exposure to consumer staples, sought after by investors as a "safe haven" despite their poor value, detracted from relative performance. Overweight positons in emerging markets was a detractor despite stock selection within those markets. Allocation to Europe was also a detractor.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%. Class P shares do not have a sales charge. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Columbus Circle Investors

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to Nike contributed due to improved pricing, more efficient manufacturing, positive trends in footwear spending, market share gains, and increased sponsorship/licensing deals. Allocation to Starbucks Corp. contributed due to comparable store sales driven by expanded food offerings, the successful launch of premium beverages and teas, strong results in China and Japan, and the proliferation of mobile ordering and rewards card membership. Allocation to Royal Caribbean contributed due to improvement in trends in key markets, new policies to reduce discounts, stringent cost controls, declining fuel costs, and the reacceleration of onboard spending. An out-of-benchmark allocation to U.S. Steel Corp detracted due to weak pricing and volumes based on a stronger dollar, weak China manufacturing activity, and struggling emerging market economies. Allocation to Halliburton and Pioneer Natural Resources detracted due to temporary production cutbacks over concerns that oil producer capital spending budgets may be curtailed as a result of plummeting oil prices, excessive U.S. production, and above quota output by the Organization of Petroleum Exporting Countries (OPEC).

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

What contributed to or detracted from Fund performance during the fiscal year?

Overall stock selection contributed, led by selection in the consumer discretionary and materials sectors. An average approximate 6% overweight to the healthcare sector also benefitted performance. Additionally, a lower dividend yield (a comparison of dividends paid relative to share price, in the absence of capital gains, the dividend yield is the return on investment) enhanced portfolio returns relative to the index. The portfolio's higher price volatility relative to the index (overweight position in stocks that have experienced more price movement than those within the index) detracted from performance. Poor stock selection in the energy and consumer staples sectors detracted. Overweight to the energy sector, relative to the index, hurt performance.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Principal LargeCap S&P 500 Index Fund was in line with the S&P 500 index. Six of the ten economic sectors posted positive returns with the consumer discretionary and information technology sectors providing the largest positive returns. Individual contributors included Kraft Heinz Company, Netflix and Amazon.com Inc. The energy and materials sectors detracted the most, recording the worst returns. Allocations to CONSOL Energy, Chesapeake Energy and Genworth Financial detracted from portfolio performance.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 1.50%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class C. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Overweight to Tesoro Corporation contributed to performance due to higher than expected margins in California and the mid-continent. Overweight to Kroger, which reported solid earnings throughout the period and raised fiscal year 2015 (FY15) guidance, contributed. Overweight to Electronic Arts contributed to performance due to the console cycle and an increase in digital gaming. Overweight to Western Digital Corporation, a developer and manufacturer of storage solutions, detracted as the company faces tough competition as the industry continues to mature and consolidate. Overweight to ConocoPhillips, a large global oil company, detracted as energy prices fell. An overweight position in LyondellBasell Industries NV detracted as the recent fall in commodity prices have applied downward pressure on margins.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes C and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to O'Reilly Automotive contributed due to solid results, the benefit of low gas prices increasing total miles driven, and being well positioned as the average age of vehicles on the road increases. Allocation to Markel, a specialty insurance underwriter, contributed. Allocation to AutoZone, which has used available cash flow to buy back shares, contributed to performance. Allocation to Colfax detracted due to weakness within the company's end markets, the headwind of a strong dollar, and a temporary manufacturing problem which negatively impacted earnings. Allocation to Platform Specialty Products detracted as end markets for their products experienced cyclical weakness in the industrial and agricultural categories. Allocation to Discovery Communications, which owns an extensive library of non-fiction content and airs domestically on 14 channels and in over 210 countries on an average of eight channels per country, detracted due to an overall concern regarding the health of the domestic pay-tv advertising market.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

What contributed to or detracted from Fund performance during the fiscal year?

Overall stock selection contributed, specifically in the energy and consumer discretionary sectors. Overall sector allocation also added to performance, led by an average approximate 1% underweight to the energy sector, which was the worst performing sector in the index. Additionally, a higher relative strength profile (an overweight to stocks exhibiting upward price movement during the trailing period) than the index benefitted portfolio performance. An average approximate 4% overweight to the industrial sector detracted. Poor stock selection in the financials sector detracted. Additionally, the portfolio's higher price volatility (overweight position in stocks that have experienced more price movement) than the index detracted.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to Starbucks Corporation contributed due to strong returns as the company continued to execute well operationally and financially. Allocation to Nike, Inc. in the consumer discretionary sector contributed due to strong sales globally. Allocation to HCC Insurance Holdings, Inc. in the financials sector contributed due in part to the Tokio Marine announcement that it will acquire HCC in an all-cash deal. Allocation to Franklin Resources, Inc. in the financials sector detracted due to weaker than expected revenues and net outflows. Allocation to Devon Energy Corporation detracted due to the depressed oil and gas price environment. Allocation to Apache Corporation detracted as it traded down with other oil and gas exploration & production stocks when the price of oil fell.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Real Estate Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Overweight to CubeSmart and the entire self-storage sector contributed due to strong fundamentals and technology efficiencies. Underweight to HCP, Inc. in the healthcare sector contributed as it underperformed due to deteriorating rent coverage from HCR ManorCare, its largest tenant. Overweight to Simon Property Group contributed as the company has been able to backfill vacancies with better credit tenants and increased private market transactions. Underweight to Macerich Company detracted as the stock rallied early in the year from the news of a potential takeover, strong core headline results, and positive market fundamentals despite the takeover rejection. Overweight to Pebblebrook Hotels was a top detractor due to weakening demand from transient travelers and visitors from overseas. Overweight to Host Hotels & Resorts, Inc. detracted due to issues with their large presence in NYC and demand from overseas visitors.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes C and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Fund performance during the fiscal year?

Security selection in U.S. government-owned debt aided performance. Security selection in the insurance sector contributed. Allocation to non-agency mortgage-backed securities (MBS) contributed. Underweight to and issue selection in the banking sector was the largest detractor from performance. Allocation to auto asset-backed securities (ABS) detracted from performance. Allocation to cash detracted.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Stock selection in the financials, information technology, consumer discretionary, and industrials sectors contributed most to performance. Allocation to Manhattan Associates, which provides retailers and wholesalers with software systems for supply-chain management, contributed due to better-than-expected operating results. Allocation to Rite Aid contributed as shares were up sharply on news that they agreed to be acquired by Walgreens Boots Alliance, a larger competitor. Allocation to Sabre, a company that provides technology solutions that enable airlines, hotels, and other travel suppliers to transact with travel buyers to manage reservations, contributed as a result of ongoing travel industry growth and increased outsourcing of IT solutions. Stock selection in the utilities and materials sectors detracted most from performance. Allocation to DeVry Education Group, a leading provider of for-profit educational services, detracted due to weaker-than-expected results that stemmed from decelerating enrollments. Allocation to SUPERVALU, a food retailer and wholesaler, detracted as food price deflation constrained profitability. Allocation to Worthington Industries, a steel processing company and manufacturer of pressurized cylinders, detracted as higher input and operating costs interrupted the company's plans for improving operating margins.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A, C, and P. Returns displayed are based on net total investment expense.

Dimensional Fund Advisors, LP; Los Angeles Capital Management & Equity Research, Inc.; Vaughan Nelson Investment Management, LP

What contributed to or detracted from Fund performance during the fiscal year?

Overall stock selection across every sector contributed, led by the financials sector. An average approximate 6% overweight to the healthcare sector also contributed. A higher relative strength profile (an overweight to stocks exhibiting upward price movement during the trailing period) in relation to the index was beneficial to performance. A significant underweight of an average approximate 12% to the financials sector was a detractor from performance, as it was one of the better performing sectors in the index. Exposure to the energy sector also detracted as the sector was extremely negative for the year. Lastly, the portfolio's higher price volatility relative to the index detracted.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Classes A and P. Returns displayed are based on net total investment expense.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

Allocation to transportation contributed. Allocation to the tobacco holdings contributed. Exposure to inverse floaters (adjusts its coupon payment as the interest rates change) contributed. Allocation to tribal gaming holdings detracted. Allocation to housing and education holdings detracted.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses.

Expense limits apply through 2/29/16 for Class C; 2/28/17 for Class P. Returns displayed are based on net total investment expense.


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015
		California			Core Plus			Diversified
Amounts in thousands, except per share amounts	Municipal Fund				Bond Fund^(a)			International Fund
Investment in securities--at cost	$	208,799		$	4,480,739		$	5,586,099
Foreign currency--at cost	$	–		$	377		$	–
Assets
Investment in securities--at value	$	225,917		$	4,443,267		$	6,116,717
Foreign currency--at value		–			378			–
Cash		7,060			183,717			–
Receivables:
Dividends and interest		2,739			30,270			22,781
Expense reimbursement from Manager		10			21			4
Expense reimbursement from Distributor		–			13			15
Foreign currency contracts		–			198			–
Fund shares sold		3,245			7,538			10,214
Investment securities sold		–			194,523			99,324
Variation margin on financial derivative instruments		–			460			–
Other assets		–			7			5
Prepaid directors' expenses		–			4			–
Total Assets		238,971			4,860,396			6,249,060
Liabilities
Accrued management and investment advisory fees		84			1,782			4,283
Accrued administrative service fees		–			6			6
Accrued distribution fees		56			74			116
Accrued service fees		–			28			34
Accrued transfer agent fees		6			190			302
Accrued professional fees		26			37			11
Accrued other expenses		16			108			210
Cash overdraft		–			–			35,410
Payables:
Deferred foreign tax		–			–			232
Dividends payable		1,106			7,162			–
Foreign currency contracts		–			52			–
Fund shares redeemed		582			9,122			6,675
Interest expense and fees payable		86			–			–
Investment securities purchased		1,833			586,182			23,944
Unrealized loss on unfunded loan commitments		N/A			–			N/A
Variation margin on financial derivative instruments		–			92			–
Floating rate notes issued		10,739			–			–
Total Liabilities		14,534			604,835			71,223
Net Assets Applicable to Outstanding Shares	$	224,437		$	4,255,561		$	6,177,837
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	250,786		$	4,419,345		$	6,025,989
Accumulated undistributed (overdistributed) net investment income (loss)		406			1,553			73,133
Accumulated undistributed (overdistributed) net realized gain (loss)		(43,873	)		(127,879	)		(450,823	)
Net unrealized appreciation (depreciation) of investments		17,118			(37,603	)		530,386
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			145			(848	)
Total Net Assets	$	224,437		$	4,255,561		$	6,177,837
Capital Stock (par value: $.01 per share):
Shares authorized		600,000			1,060,000			1,525,000
Net Asset Value Per Share:
Class A: Net Assets	$	201,572		$	96,057		$	242,162
Shares Issued and Outstanding		19,266			8,895			20,970
Net Asset Value per share	$	10.46		$	10.80		$	11.55
Maximum Offering Price	$	10.87		$	11.22		$	12.22
Class C: Net Assets	$	16,014		$	7,020		$	14,376
Shares Issued and Outstanding		1,528			650			1,249
Net Asset Value per share	$	10.48	^(b)	$	10.80	^(b)	$	11.51	^(b)
Class J: Net Assets		N/A		$	157,975		$	181,039
Shares Issued and Outstanding					14,536			15,845
Net Asset Value per share				$	10.87	^(b)	$	11.43	^(b)
Class P: Net Assets	$	6,710			N/A		$	3,992
Shares Issued and Outstanding		642						348
Net Asset Value per share	$	10.46					$	11.48
Institutional: Net Assets	$	141		$	3,861,879		$	5,579,231
Shares Issued and Outstanding		14			357,790			484,088
Net Asset Value per share	$	10.46		$	10.79		$	11.53
R-1: Net Assets		N/A		$	6,480		$	5,298
Shares Issued and Outstanding					600			462
Net Asset Value per share				$	10.79		$	11.48
R-2: Net Assets		N/A		$	11,029		$	6,922
Shares Issued and Outstanding					1,032			606
Net Asset Value per share				$	10.69		$	11.43
R-3: Net Assets		N/A		$	30,643		$	37,260
Shares Issued and Outstanding					2,855			3,244
Net Asset Value per share				$	10.73		$	11.48
R-4: Net Assets		N/A		$	23,662		$	36,818
Shares Issued and Outstanding					2,164			3,159
Net Asset Value per share				$	10.93		$	11.66
R-5: Net Assets		N/A		$	60,816		$	70,739
Shares Issued and Outstanding					5,660			6,079
Net Asset Value per share				$	10.74		$	11.64


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015
					Global Diversified			Global Real Estate
Amounts in thousands, except per share amounts	Equity Income Fund				Income Fund			Securities Fund
Investment in securities--at cost	$	3,842,795		$	11,502,768		$	2,644,503
Foreign currency--at cost	$	–		$	17,022		$	–
Assets
Investment in securities--at value	$	5,477,903		$	11,216,213		$	2,927,595
Foreign currency--at value		–			16,888			–
Cash		869			11,338			–
Deposits with counterparty		–			45,144			–
Receivables:
Dividends and interest		7,751			120,819			1,790
Expense reimbursement from Manager		–			–			5
Foreign currency contracts		–			8,913			–
Fund shares sold		924			54,288			6,922
Investment securities sold		–			183,401			34,541
Other assets		2			–			–
Prepaid directors' expenses		1			–			1
Total Assets		5,487,450			11,657,004			2,970,854
Liabilities
Accrued management and investment advisory fees		2,317			6,913			2,124
Accrued administrative service fees		9			–			–
Accrued distribution fees		376			2,777			81
Accrued service fees		63			–			–
Accrued transfer agent fees		369			1,813			215
Accrued professional fees		17			35			20
Accrued other expenses		101			690			82
Cash overdraft		–			–			2,314
Payables:
Dividends payable		–			37,609			–
Foreign currency contracts		–			2,891			–
Fund shares redeemed		5,889			35,091			5,008
Investment securities purchased		–			169,820			6,333
Options and swaptions contracts written (premiums received $0, $14,021 and $0)		–			19,948			–
OTC swap agreements--at value (premiums received $0, $2,379 and $0)		–			4,100			–
Unrealized loss on unfunded loan commitments		N/A			–			N/A
Total Liabilities		9,141			281,687			16,177
Net Assets Applicable to Outstanding Shares	$	5,478,309		$	11,375,317		$	2,954,677
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	3,822,744		$	11,645,616		$	2,620,105
Accumulated undistributed (overdistributed) net investment income (loss)		32,422			119,525			(8,869	)
Accumulated undistributed (overdistributed) net realized gain (loss)		(11,966	)		(101,649	)		60,369
Net unrealized appreciation (depreciation) of investments		1,635,108			(294,203	)		283,092
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		1			6,028			(20	)
Total Net Assets	$	5,478,309		$	11,375,317		$	2,954,677
Capital Stock (par value: $.01 per share):
Shares authorized		1,700,000			1,850,000			725,000
Net Asset Value Per Share:
Class A: Net Assets	$	942,277		$	2,353,934		$	146,690
Shares Issued and Outstanding		36,516			173,224			16,766
Net Asset Value per share	$	25.80		$	13.59		$	8.75
Maximum Offering Price	$	27.30		$	14.12		$	9.26
Class C: Net Assets	$	189,402		$	2,677,807		$	59,807
Shares Issued and Outstanding		7,510			198,140			7,035
Net Asset Value per share	$	25.22	^(a)	$	13.51	^(a)	$	8.50	^(a)
Class P: Net Assets	$	125,785		$	2,972,152		$	226,953
Shares Issued and Outstanding		4,873			219,776			24,390
Net Asset Value per share	$	25.81		$	13.52		$	9.31
Institutional: Net Assets	$	3,921,558		$	3,371,424		$	2,521,188
Shares Issued and Outstanding		151,801			249,062			270,597
Net Asset Value per share	$	25.83		$	13.54		$	9.32
R-1: Net Assets	$	3,194			N/A			N/A
Shares Issued and Outstanding		124
Net Asset Value per share	$	25.71
R-2: Net Assets	$	5,605			N/A			N/A
Shares Issued and Outstanding		217
Net Asset Value per share	$	25.79
R-3: Net Assets	$	68,044			N/A			N/A
Shares Issued and Outstanding		2,645
Net Asset Value per share	$	25.73
R-4: Net Assets	$	56,958			N/A			N/A
Shares Issued and Outstanding		2,210
Net Asset Value per share	$	25.77
R-5: Net Assets	$	165,486			N/A			N/A
Shares Issued and Outstanding		6,412
Net Asset Value per share	$	25.81
R-6: Net Assets		N/A			N/A		$	39
Shares Issued and Outstanding								4
Net Asset Value per share							$	9.32


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015
	Government & High
Amounts in thousands, except per share amounts	Quality Bond Fund				High Yield Fund			High Yield Fund I
Investment in securities--at cost	$	1,574,514		$	3,788,780		$	912,500
Foreign currency--at cost	$	–		$	1,442		$	–
Assets
Investment in securities--at value	$	1,572,410		$	3,578,652		$	865,061
Foreign currency--at value		–			1,434			–
Cash		–			293			438
Receivables:
Dividends and interest		7,686			61,758			14,269
Expense reimbursement from Manager		7			–			–
Expense reimbursement from Distributor		36			–			–
Foreign currency contracts		–			538			–
Fund shares sold		5,241			22,830			5,221
Investment securities sold		–			19,837			5,419
Variation margin on financial derivative instruments		–			79			–
Other assets		19			–			–
Prepaid directors' expenses		1			2			2
Total Assets		1,585,400			3,685,423			890,410
Liabilities
Accrued management and investment advisory fees		657			1,500			470
Accrued administrative service fees		3			–			–
Accrued distribution fees		144			557			1
Accrued service fees		13			–			–
Accrued transfer agent fees		146			1,122			29
Accrued professional fees		24			32			31
Accrued other expenses		62			265			17
Cash overdraft		199			–			–
Payables:
Dividends payable		4,529			16,516			3,871
Fund shares redeemed		1,804			7,376			1,148
Investment securities purchased		28,336			23,763			8,480
Unrealized loss on unfunded loan commitments		N/A			–			N/A
Total Liabilities		35,917			51,131			14,047
Net Assets Applicable to Outstanding Shares	$	1,549,483		$	3,634,292		$	876,363
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,613,430		$	3,864,656		$	944,251
Accumulated undistributed (overdistributed) net investment income (loss)		(2,451	)		(1,435	)		444
Accumulated undistributed (overdistributed) net realized gain (loss)		(59,392	)		(19,608	)		(20,893	)
Net unrealized appreciation (depreciation) of investments		(2,104	)		(209,841	)		(47,439	)
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			520			–
Total Net Assets	$	1,549,483		$	3,634,292		$	876,363
Capital Stock (par value: $.01 per share):
Shares authorized		1,175,000			1,700,000			400,000
Net Asset Value Per Share:
Class A: Net Assets	$	291,241		$	1,039,461		$	3,981
Shares Issued and Outstanding		26,641			145,136			413
Net Asset Value per share	$	10.93		$	7.16		$	9.64
Maximum Offering Price	$	11.18		$	7.44		$	10.02
Class C: Net Assets	$	54,699		$	415,004			N/A
Shares Issued and Outstanding		5,010			57,412
Net Asset Value per share	$	10.92	^(a)	$	7.23	^(a)
Class J: Net Assets	$	133,414			N/A			N/A
Shares Issued and Outstanding		12,188
Net Asset Value per share	$	10.95	^(a)
Class P: Net Assets	$	8,300		$	538,738			N/A
Shares Issued and Outstanding		757			75,209
Net Asset Value per share	$	10.96		$	7.16
Institutional: Net Assets	$	1,001,014		$	1,641,089		$	872,382
Shares Issued and Outstanding		91,536			230,525			90,400
Net Asset Value per share	$	10.94		$	7.12		$	9.65
R-1: Net Assets	$	2,703			N/A			N/A
Shares Issued and Outstanding		247
Net Asset Value per share	$	10.94
R-2: Net Assets	$	7,499			N/A			N/A
Shares Issued and Outstanding		685
Net Asset Value per share	$	10.94
R-3: Net Assets	$	17,243			N/A			N/A
Shares Issued and Outstanding		1,576
Net Asset Value per share	$	10.94
R-4: Net Assets	$	10,391			N/A			N/A
Shares Issued and Outstanding		949
Net Asset Value per share	$	10.95
R-5: Net Assets	$	22,979			N/A			N/A
Shares Issued and Outstanding		2,099
Net Asset Value per share	$	10.95


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015
											International
							Inflation				Emerging
Amounts in thousands, except per share amounts			Income Fund				Protection Fund				Markets Fund
Investment in securities--at cost		$	3,110,861			$	1,691,437			$	1,222,898
Foreign currency--at cost			$	–		$	59,680				$ –
Assets
Investment in securities--at value		$	3,125,451			$	1,642,275			$	1,183,479
Foreign currency--at value				–			59,560				–
Cash				272			–				–
Deposits with counterparty				–			2,619				–
Receivables:
Dividends and interest				26,777			3,125				408
Expense reimbursement from Manager				4			6				2
Expense reimbursement from Distributor				8			1				9
Foreign currency contracts				–			5,659				–
Foreign tax refund				–			–				143
Fund shares sold				10,053			2,136				1,674
Interfund lending				–			–				50
Investment securities sold				–			7,207				7,999
Variation margin on financial derivative instruments				–			136				–
Total Assets			3,162,565				1,722,724				1,193,764
Liabilities
Accrued management and investment advisory fees				1,280			529				1,191
Accrued administrative service fees				7			1				2
Accrued distribution fees				145			9				51
Accrued service fees				26			3				11
Accrued transfer agent fees				162			29				181
Accrued professional fees				23			23				7
Accrued other expenses				57			52				127
Cash overdraft				–			–				3,497
Payables:
Deferred foreign tax				–			–				389
Dividends payable				8,361			–				–
Foreign currency contracts				–			4,184				–
Fund shares redeemed				4,861			2,319				1,844
Investment securities purchased				–			65,063				161
Options and swaptions contracts written (premiums received $0, $6,222 and $0)				–			4,675				–
OTC swap agreements--at value (premiums received $0, $0 and $0)				–			286				–
Variation margin on financial derivative instruments				–			226				–
Total Liabilities				14,922			77,399				7,461
Net Assets Applicable to Outstanding Shares		$	3,147,643			$	1,645,325			$	1,186,303
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	3,173,778			$	1,714,083			$	1,341,072
Accumulated undistributed (overdistributed) net investment income (loss)				(7,102	)		11,980				6,805
Accumulated undistributed (overdistributed) net realized gain (loss)				(33,623	)		(32,478	)			(122,049	)
Net unrealized appreciation (depreciation) of investments				14,590			(49,616	)			(39,665	)
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency				–			1,356				140
Total Net Assets		$	3,147,643			$	1,645,325			$	1,186,303
Capital Stock (par value: $.01 per share):
Shares authorized			1,125,000				900,000				900,000
Net Asset Value Per Share:
Class A: Net Assets	$		265,113			$	13,490		$		78,797
Shares Issued and Outstanding				27,964			1,628				3,688
Net Asset Value per share	$			9.48		$	8.29		$		21.37
Maximum Offering Price	$			9.70		$	8.61		$		22.61
Class C: Net Assets	$			64,349		$	3,834		$		9,388
Shares Issued and Outstanding				6,750			480				459
Net Asset Value per share	$			9.53	^(a)	$	7.99	^(a)	$		20.45	^(a)
Class J: Net Assets	$			92,169		$	7,516		$		99,723
Shares Issued and Outstanding				9,700			927				4,839
Net Asset Value per share	$			9.50	^(a)	$	8.11	^(a)	$		20.61	^(a)
Class P: Net Assets	$			20,563			N/A		$		1,279
Shares Issued and Outstanding				2,164							60
Net Asset Value per share	$			9.50					$		21.22
Institutional: Net Assets	$		2,576,219			$	1,608,193		$		948,114
Shares Issued and Outstanding			271,009				192,582				44,631
Net Asset Value per share	$			9.51		$	8.35		$		21.24
R-1: Net Assets	$			15,740		$	693		$		2,842
Shares Issued and Outstanding				1,655			87				135
Net Asset Value per share	$			9.51		$	8.00		$		21.08
R-2: Net Assets	$			2,867		$	533		$		3,777
Shares Issued and Outstanding				301			66				180
Net Asset Value per share	$			9.52		$	8.04		$		20.95
R-3: Net Assets	$			33,494		$	4,825		$		10,805
Shares Issued and Outstanding				3,517			594				512
Net Asset Value per share	$			9.52		$	8.12		$		21.10
R-4: Net Assets	$			23,620		$	1,982		$		8,922
Shares Issued and Outstanding				2,482			242				421
Net Asset Value per share	$			9.52		$	8.19		$		21.20
R-5: Net Assets	$			46,970		$	4,259		$		22,656
Shares Issued and Outstanding				4,944			516				1,066
Net Asset Value per share	$			9.50		$	8.25		$		21.26
R-6: Net Assets	$			6,539			N/A				N/A
Shares Issued and Outstanding				688
Net Asset Value per share	$			9.50


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015
					LargeCap				LargeCap
Amounts in thousands, except per share amounts	International Fund I				Growth Fund				Growth Fund I
Investment in securities--at cost	$	343,000		$	2,169,564			$	5,564,592
Assets
Investment in securities--at value	$	378,709		$	2,879,331			$	7,359,830
Deposits with counterparty		651			–				11,204
Receivables:
Dividends and interest		2,076			1,021				2,507
Expense reimbursement from Manager		–			2				103
Expense reimbursement from Distributor		–			6				10
Fund shares sold		63			192				1,651
Investment securities sold		–			108,155				37,899
Other assets		–			12				–
Prepaid directors' expenses		–			1				4
Total Assets		381,499			2,988,720				7,413,208
Liabilities
Accrued management and investment advisory fees		290			1,513				3,645
Accrued administrative service fees		2			4				19
Accrued distribution fees		4			117				74
Accrued service fees		5			23				122
Accrued transfer agent fees		35			457				399
Accrued custodian fees		17			–				–
Accrued professional fees		16			17				18
Accrued other expenses		27			56				65
Payables:
Fund shares redeemed		211			2,390				12,279
Investment securities purchased		–			41,645				55,257
Variation margin on financial derivative instruments		41			–				1,042
Total Liabilities		648			46,222				72,920
Net Assets Applicable to Outstanding Shares	$	380,851		$	2,942,498			$	7,340,288
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	656,481		$	1,887,577			$	4,578,599
Accumulated undistributed (overdistributed) net investment income (loss)		2,799			3,670				1,122
Accumulated undistributed (overdistributed) net realized gain (loss)		(314,985	)		341,484				952,963
Net unrealized appreciation (depreciation) of investments		36,712			709,767				1,807,604
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		(156	)		–				–
Total Net Assets	$	380,851		$	2,942,498			$	7,340,288
Capital Stock (par value: $.01 per share):
Shares authorized		700,000			1,335,000				1,170,000
Net Asset Value Per Share:
Class A: Net Assets	$	5,303		$	380,233		$		14,606
Shares Issued and Outstanding		394			34,753				1,097
Net Asset Value per share	$	13.45		$	10.94		$		13.31
Maximum Offering Price	$	14.23		$	11.58		$		14.08
Class C: Net Assets		N/A		$	18,986				N/A
Shares Issued and Outstanding					1,888
Net Asset Value per share				$	10.06	^(a)
Class J: Net Assets		N/A		$	69,824		$		123,054
Shares Issued and Outstanding					6,735				10,515
Net Asset Value per share				$	10.37	^(a)	$		11.70	^(a)
Class P: Net Assets	$	34,612		$	11,686		$		1,300
Shares Issued and Outstanding		2,562			1,033				96
Net Asset Value per share	$	13.51		$	11.31		$		13.46
Institutional: Net Assets	$	316,421		$	2,352,018		$		6,608,588
Shares Issued and Outstanding		23,385			206,722				489,925
Net Asset Value per share	$	13.53		$	11.38		$		13.49
R-1: Net Assets	$	3,710		$	5,815		$		8,078
Shares Issued and Outstanding		276			553				660
Net Asset Value per share	$	13.42		$	10.52		$		12.23
R-2: Net Assets	$	3,189		$	5,386		$		16,204
Shares Issued and Outstanding		237			504				1,354
Net Asset Value per share	$	13.48		$	10.69		$		11.97
R-3: Net Assets	$	4,721		$	19,280		$		152,222
Shares Issued and Outstanding		350			1,661				12,005
Net Asset Value per share	$	13.47		$	11.61		$		12.68
R-4: Net Assets	$	3,651		$	14,853		$		94,343
Shares Issued and Outstanding		271			1,285				7,369
Net Asset Value per share	$	13.49		$	11.56		$		12.80
R-5: Net Assets	$	9,244		$	64,417		$		320,510
Shares Issued and Outstanding		685			5,626				24,397
Net Asset Value per share	$	13.49		$	11.45		$		13.14
R-6: Net Assets		N/A			N/A		$		1,383
Shares Issued and Outstanding									103
Net Asset Value per share							$		13.49


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015
	LargeCap S&P 500				LargeCap
Amounts in thousands, except per share amounts		Index Fund			Value Fund				MidCap Fund
Investment in securities--at cost	$	3,270,043		$	2,273,785			$	8,895,327
Assets
Investment in securities--at value	$	4,912,823		$	2,485,843			$	11,133,689
Cash		463			1,872				47
Receivables:
Dividends and interest		5,071			1,864				3,879
Expense reimbursement from Manager		5			3				–
Expense reimbursement from Distributor		43			6				23
Fund shares sold		21,928			412				45,404
Investment securities sold		946			–				24,289
Other assets		2			28				6
Prepaid directors' expenses		–			3				–
Total Assets		4,941,281			2,490,031				11,207,337
Liabilities
Accrued management and investment advisory fees		609			861				5,433
Accrued administrative service fees		31			1				35
Accrued distribution fees		244			64				832
Accrued service fees		182			4				150
Accrued transfer agent fees		277			165				1,492
Accrued directors' expenses		1			–				–
Accrued professional fees		17			17				19
Accrued other expenses		104			54				513
Payables:
Fund shares redeemed		17,071			3,653				17,217
Investment securities purchased		–			2,576				29,085
Variation margin on financial derivative instruments		383			–				–
Total Liabilities		18,919			7,395				54,776
Net Assets Applicable to Outstanding Shares	$	4,922,362		$	2,482,636			$	11,152,561
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	3,237,760		$	1,968,768			$	8,207,190
Accumulated undistributed (overdistributed) net investment income (loss)		62,433			39,643				9,383
Accumulated undistributed (overdistributed) net realized gain (loss)		(25,363	)		262,167				697,626
Net unrealized appreciation (depreciation) of investments		1,647,532			212,058				2,238,362
Total Net Assets	$	4,922,362		$	2,482,636			$	11,152,561
Capital Stock (par value: $.01 per share):
Shares authorized		950,000			1,000,000				1,775,000
Net Asset Value Per Share:
Class A: Net Assets	$	269,123		$	202,026		$		1,995,620
Shares Issued and Outstanding		18,196			15,849				89,704
Net Asset Value per share	$	14.79		$	12.75		$		22.25
Maximum Offering Price	$	15.02		$	13.49		$		23.54
Class C: Net Assets	$	32,500		$	7,233		$		346,242
Shares Issued and Outstanding		2,243			583				16,674
Net Asset Value per share	$	14.49	^(a)	$	12.41	^(a)	$		20.77	^(a)
Class J: Net Assets	$	518,099		$	68,986		$		278,993
Shares Issued and Outstanding		35,351			5,506				12,996
Net Asset Value per share	$	14.66	^(a)	$	12.53	^(a)	$		21.47	^(a)
Class P: Net Assets		N/A		$	273		$		2,478,644
Shares Issued and Outstanding					22				109,948
Net Asset Value per share				$	12.72		$		22.54
Institutional: Net Assets	$	3,232,141		$	2,187,554		$		5,328,050
Shares Issued and Outstanding		218,369			171,591				235,703
Net Asset Value per share	$	14.80		$	12.75		$		22.60
R-1: Net Assets	$	21,157		$	1,384		$		58,620
Shares Issued and Outstanding		1,439			110				2,777
Net Asset Value per share	$	14.70		$	12.60		$		21.11
R-2: Net Assets	$	30,689		$	2,048		$		34,310
Shares Issued and Outstanding		2,074			162				1,609
Net Asset Value per share	$	14.80		$	12.64		$		21.33
R-3: Net Assets	$	217,562		$	3,815		$		151,776
Shares Issued and Outstanding		14,725			302				6,930
Net Asset Value per share	$	14.78		$	12.63		$		21.90
R-4: Net Assets	$	219,215		$	2,116		$		154,669
Shares Issued and Outstanding		14,783			167				6,859
Net Asset Value per share	$	14.83		$	12.62		$		22.55
R-5: Net Assets	$	381,876		$	7,201		$		325,637
Shares Issued and Outstanding		25,538			565				14,550
Net Asset Value per share	$	14.95		$	12.75		$		22.38


	STATEMENTS OF ASSETS AND LIABILITIES
	PRINCIPAL FUNDS, INC.
	October 31, 2015
			MidCap				Money			Principal Capital
Amounts in thousands, except per share amounts			Value Fund III				Market Fund			Appreciation Fund
Investment in securities--at cost		$	967,796			$	1,003,430		$	1,476,754
Assets
Investment in securities--at value		$	1,053,917			$	1,003,430		$	2,647,725
Cash			6				95			209
Deposits with counterparty			2,800				–			–
Receivables:
Dividends and interest			750				68			1,985
Expense reimbursement from Manager			19				240			–
Expense reimbursement from Distributor			9				72			–
Fund shares sold			406				1,053			463
Investment securities sold			3,079				–			3,560
Variation margin on financial derivative instruments			12				–			–
Other assets			–				26			5
Prepaid directors' expenses			–				–			1
	Total Assets		1,060,998				1,004,984			2,653,948
Liabilities
Accrued management and investment advisory fees			561				347			978
Accrued administrative service fees			2				–			5
Accrued distribution fees			30				72			244
Accrued service fees			14				–			25
Accrued transfer agent fees			73				205			342
Accrued professional fees			17				23			26
Accrued other expenses			26				59			65
Payables:
Fund shares redeemed			1,741				4,063			2,622
Investment securities purchased			6,043				–			12,132
	Total Liabilities		8,507				4,769			16,439
Net Assets Applicable to Outstanding Shares		$	1,052,491			$	1,000,215		$	2,637,509
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	926,127			$	1,038,661		$	1,329,713
Accumulated undistributed (overdistributed) net investment income (loss)			8,971				–			28,230
Accumulated undistributed (overdistributed) net realized gain (loss)			29,769				(38,446	)		108,595
Net unrealized appreciation (depreciation) of investments			87,624				–			1,170,971
	Total Net Assets	$	1,052,491			$	1,000,215		$	2,637,509
Capital Stock (par value: $.01 per share):
Shares authorized			550,000				8,400,000			1,000,000
Net Asset Value Per Share:
Class A: Net Assets	$		12,058		$		465,970		$	933,710
Shares Issued and Outstanding			635				465,858			15,757
Net Asset Value per share	$		19.00		$		1.00		$	59.26
Maximum Offering Price	$		20.11		$		1.00		$	62.71
Class C: Net Assets			N/A		$		19,896		$	48,298
Shares Issued and Outstanding							19,891			991
Net Asset Value per share					$		1.00	^(a)	$	48.72	^(a)
Class J: Net Assets	$		104,787		$		254,240			N/A
Shares Issued and Outstanding			5,798				254,179
Net Asset Value per share	$		18.07	^(a)	$		1.00	^(a)
Class P: Net Assets	$		158				N/A		$	33,658
Shares Issued and Outstanding			8							561
Net Asset Value per share	$		19.12						$	60.00
Institutional: Net Assets	$		866,866		$		260,109		$	1,501,149
Shares Issued and Outstanding			45,241				260,047			24,933
Net Asset Value per share	$		19.16		$		1.00		$	60.21
R-1: Net Assets	$		1,496				N/A		$	4,282
Shares Issued and Outstanding			82							72
Net Asset Value per share	$		18.14						$	59.14
R-2: Net Assets	$		2,204				N/A		$	3,797
Shares Issued and Outstanding			121							64
Net Asset Value per share	$		18.27						$	59.28
R-3: Net Assets	$		15,024				N/A		$	35,202
Shares Issued and Outstanding			827							594
Net Asset Value per share	$		18.16						$	59.22
R-4: Net Assets	$		18,262				N/A		$	23,003
Shares Issued and Outstanding			1,014							386
Net Asset Value per share	$		18.01						$	59.66
R-5: Net Assets	$		27,790				N/A		$	54,410
Shares Issued and Outstanding			1,529							909
Net Asset Value per share	$		18.18						$	59.86
R-6: Net Assets	$		3,846				N/A			N/A
Shares Issued and Outstanding			201
Net Asset Value per share	$		19.16


	STATEMENTS OF ASSETS AND LIABILITIES
	PRINCIPAL FUNDS, INC.
	October 31, 2015
			Real Estate				Short-Term
Amounts in thousands, except per share amounts			Securities Fund				Income Fund			SmallCap Fund^(a)
Investment in securities--at cost		$	1,774,110			$	2,819,194		$	494,796
Assets
Investment in securities--at value		$	2,369,073			$	2,816,988		$	591,068
Cash			–				323			–
Deposits with counterparty			–				–			167
Receivables:
Dividends and interest			432				18,106			176
Expense reimbursement from Manager			–				–			1
Expense reimbursement from Distributor			15				11			17
Fund shares sold			9,677				7,212			4,174
Investment securities sold			36,757				20,325			8,139
Other assets			–				–			1
Prepaid directors' expenses			2				–			1
	Total Assets		2,415,956				2,862,965			603,744
Liabilities
Accrued management and investment advisory fees			1,620				993			374
Accrued administrative service fees			12				2			2
Accrued distribution fees			161				141			114
Accrued service fees			70				9			9
Accrued transfer agent fees			428				166			174
Accrued professional fees			17				24			17
Accrued other expenses			117				53			56
Payables:
Dividends payable			–				4,726			–
Fund shares redeemed			7,313				12,295			977
Investment securities purchased			35,932				29,515			3,036
Variation margin on financial derivative instruments			–				–			8
	Total Liabilities		45,670				47,924			4,767
Net Assets Applicable to Outstanding Shares		$	2,370,286			$	2,815,041		$	598,977
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	1,661,670			$	2,833,786		$	483,930
Accumulated undistributed (overdistributed) net investment income (loss)			3,293				3,774			(582	)
Accumulated undistributed (overdistributed) net realized gain (loss)			110,360				(20,313	)		19,344
Net unrealized appreciation (depreciation) of investments			594,963				(2,206	)		96,285
	Total Net Assets	$	2,370,286			$	2,815,041		$	598,977
Capital Stock (par value: $.01 per share):
Shares authorized			950,000				820,000			725,000
Net Asset Value Per Share:
Class A: Net Assets	$		289,165		$		297,899		$	225,217
Shares Issued and Outstanding			12,451				24,468			10,923
Net Asset Value per share	$		23.22		$		12.18		$	20.62
Maximum Offering Price	$		24.57		$		12.46		$	21.82
Class C: Net Assets	$		42,051		$		84,886		$	25,086
Shares Issued and Outstanding			1,836				6,968			1,309
Net Asset Value per share	$		22.90	^(b)	$		12.18	^(b)	$	19.16	^(b)
Class J: Net Assets	$		179,043		$		124,221		$	200,263
Shares Issued and Outstanding			7,905				10,207			10,103
Net Asset Value per share	$		22.65	^(b)	$		12.17	^(b)	$	19.82	^(b)
Class P: Net Assets	$		73,264		$		86,908		$	6,007
Shares Issued and Outstanding			3,155				7,140			276
Net Asset Value per share	$		23.22		$		12.17		$	21.76
Institutional: Net Assets	$		1,458,518		$		2,180,068		$	98,042
Shares Issued and Outstanding			62,747				179,153			4,496
Net Asset Value per share	$		23.24		$		12.17		$	21.81
R-1: Net Assets	$		6,976		$		1,237		$	2,889
Shares Issued and Outstanding			303				102			146
Net Asset Value per share	$		22.98		$		12.17		$	19.88
R-2: Net Assets	$		16,941		$		1,975		$	4,161
Shares Issued and Outstanding			761				162			207
Net Asset Value per share	$		22.26		$		12.17		$	20.06
R-3: Net Assets	$		64,026		$		11,415		$	9,368
Shares Issued and Outstanding			2,817				938			454
Net Asset Value per share	$		22.73		$		12.17		$	20.63
R-4: Net Assets	$		93,806		$		14,049		$	9,089
Shares Issued and Outstanding			4,167				1,154			427
Net Asset Value per share	$		22.51		$		12.17		$	21.27
R-5: Net Assets	$		146,496		$		12,383		$	18,855
Shares Issued and Outstanding			6,494				1,017			871
Net Asset Value per share	$		22.56		$		12.18		$	21.65


	STATEMENTS OF ASSETS AND LIABILITIES
	PRINCIPAL FUNDS, INC.
	October 31, 2015
			SmallCap			Tax-Exempt
Amounts in thousands, except per share amounts			Value Fund II			Bond Fund
Investment in securities--at cost		$	1,194,250		$	236,070
Assets
Investment in securities--at value		$	1,318,590		$	254,469
Cash			2			3,079
Deposits with counterparty			4,500			–
Receivables:
Dividends and interest			318			3,697
Expense reimbursement from Manager			32			13
Expense reimbursement from Distributor			2			–
Fund shares sold			201			670
Investment securities sold			6,875			–
Other assets			–			9
	Total Assets		1,330,520			261,937
Liabilities
Accrued management and investment advisory fees			1,096			95
Accrued administrative service fees			2			–
Accrued distribution fees			9			60
Accrued service fees			11			–
Accrued transfer agent fees			29			19
Accrued professional fees			17			23
Accrued other expenses			17			18
Payables:
Dividends payable			–			508
Fund shares redeemed			1,466			243
Interest expense and fees payable			–			12
Investment securities purchased			3,058			2,139
Variation margin on financial derivative instruments			209			–
Floating rate notes issued			–			7,621
	Total Liabilities		5,914			10,738
Net Assets Applicable to Outstanding Shares		$	1,324,606		$	251,199
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	1,030,219		$	253,889
Accumulated undistributed (overdistributed) net investment income (loss)			5,405			668
Accumulated undistributed (overdistributed) net realized gain (loss)			163,301			(21,757	)
Net unrealized appreciation (depreciation) of investments			125,681			18,399
	Total Net Assets	$	1,324,606		$	251,199
Capital Stock (par value: $.01 per share):
Shares authorized			750,000			600,000
Net Asset Value Per Share:
Class A: Net Assets	$		2,320		$	226,170
Shares Issued and Outstanding			183			30,821
Net Asset Value per share	$		12.68		$	7.34
Maximum Offering Price	$		13.42		$	7.63
Class C: Net Assets			N/A		$	14,771
Shares Issued and Outstanding						2,007
Net Asset Value per share					$	7.36	^(a)
Class J: Net Assets	$		18,937			N/A
Shares Issued and Outstanding			1,516
Net Asset Value per share	$		12.49	^(a)
Class P: Net Assets	$		50		$	9,913
Shares Issued and Outstanding			4			1,352
Net Asset Value per share	$		12.73		$	7.33
Institutional: Net Assets	$		1,251,443		$	345
Shares Issued and Outstanding			98,061			47
Net Asset Value per share	$		12.76		$	7.34
R-1: Net Assets	$		1,761			N/A
Shares Issued and Outstanding			148
Net Asset Value per share	$		11.88
R-2: Net Assets	$		3,666			N/A
Shares Issued and Outstanding			305
Net Asset Value per share	$		12.00
R-3: Net Assets	$		11,887			N/A
Shares Issued and Outstanding			963
Net Asset Value per share	$		12.35
R-4: Net Assets	$		12,024			N/A
Shares Issued and Outstanding			964
Net Asset Value per share	$		12.48
R-5: Net Assets	$		22,508			N/A
Shares Issued and Outstanding			1,788
Net Asset Value per share	$		12.59
R-6: Net Assets	$		10			N/A
Shares Issued and Outstanding			1
Net Asset Value per share	$		12.75


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

	California Municipal				Core Plus Bond			Diversified
Amounts in thousands	Fund^(a),(b),(c)				Fund^(b),(d)			International Fund^(b)
Net Investment Income (Loss)
Income:
Dividends	$	–		$	1,316		$	161,410
Withholding tax		–			–			(16,002	)
Interest		10,508			129,333			32
Total Income		10,508			130,649			145,440
Expenses:
Management and investment advisory fees		1,000			21,157			46,456
Distribution fees - Class A		522			249			629
Distribution fees - Class B		1			4			11
Distribution fees - Class C		131			68			136
Distribution fees - Class J		N/A			407			479
Distribution fees - R-1		N/A			21			20
Distribution fees - R-2		N/A			35			25
Distribution fees - R-3		N/A			75			105
Distribution fees - R-4		N/A			26			39
Administrative service fees - R-1		N/A			17			16
Administrative service fees - R-2		N/A			23			17
Administrative service fees - R-3		N/A			21			29
Administrative service fees - R-4		N/A			8			12
Administrative service fees - R-5		N/A			6			7
Registration fees - Class A		17			21			17
Registration fees - Class B		4			1			1
Registration fees - Class C		13			13			11
Registration fees - Class J		N/A			13			14
Registration fees - Class P		15			N/A			12
Registration fees - Institutional		18			53			70
Service fees - R-1		N/A			15			14
Service fees - R-2		N/A			30			21
Service fees - R-3		N/A			75			105
Service fees - R-4		N/A			64			97
Service fees - R-5		N/A			146			187
Shareholder reports - Class A		13			36			61
Shareholder reports - Class C		2			2			3
Shareholder reports - Class J		N/A			64			46
Shareholder reports - Institutional		–			30			15
Transfer agent fees - Class A		84			207			562
Transfer agent fees - Class B		2			4			8
Transfer agent fees - Class C		16			20			37
Transfer agent fees - Class J		N/A			202			277
Transfer agent fees - Class P		–			N/A			6
Transfer agent fees - Institutional		–			148			160
Custodian fees		2			68			788
Directors' expenses		6			78			98
Interest expense and fees		64			–			–
Professional fees		42			64			83
Other expenses		6			50			42
Total Gross Expenses		1,958			23,521			50,716
Less: Reimbursement from Manager - Class A		–			131			–
Less: Reimbursement from Manager - Class B		6			5			2
Less: Reimbursement from Manager - Class C		–			19			20
Less: Reimbursement from Manager - Class P		15			N/A			10
Less: Reimbursement from Manager - Institutional		19			–			–
Less: Reimbursement from Distributor - Class J		N/A			47			55
Total Net Expenses		1,918			23,319			50,629
Net Investment Income (Loss)		8,590			107,330			94,811

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		123			3,516			(30,140	)
Foreign currency transactions		–			1,558			(5,039	)
Futures contracts		–			346			–
Swap agreements		–			(4,193	)		–
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $0, $0 and $232, respectively) .		(856	)		(67,071	)		(227,434	)
Futures contracts		–			612			–
Swap agreements		–			1,545			–
Translation of assets and liabilities in foreign currencies		–			(80	)		(616	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(733	)		(63,767	)		(263,229	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	7,857		$	43,563		$	(168,418	)


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

		Equity			Global Diversified			Global Real Estate
Amounts in thousands	Income Fund^(a)				Income Fund			Securities Fund^(b)
Net Investment Income (Loss)
Income:
Dividends	$	173,333		$	135,707		$	69,629
Withholding tax		(2,554	)		(5,601	)		(2,725	)
Interest		51			506,429			9
Total Income		170,830			636,535			66,913
Expenses:
Management and investment advisory fees		29,258			79,391			23,697
Distribution fees - Class A		2,478			6,187			314
Distribution fees - Class B		92			N/A			N/A
Distribution fees - Class C		1,956			27,820			563
Distribution fees - R-1		12			N/A			N/A
Distribution fees - R-2		19			N/A			N/A
Distribution fees - R-3		184			N/A			N/A
Distribution fees - R-4		58			N/A			N/A
Administrative service fees - R-1		9			N/A			N/A
Administrative service fees - R-2		13			N/A			N/A
Administrative service fees - R-3		52			N/A			N/A
Administrative service fees - R-4		17			N/A			N/A
Administrative service fees - R-5		17			N/A			N/A
Registration fees - Class A		19			70			27
Registration fees - Class B		2			N/A			N/A
Registration fees - Class C		14			62			20
Registration fees - Class P		23			130			40
Registration fees - Institutional		14			196			63
Registration fees - R-6		N/A			N/A			22
Service fees - R-1		8			N/A			N/A
Service fees - R-2		16			N/A			N/A
Service fees - R-3		184			N/A			N/A
Service fees - R-4		144			N/A			N/A
Service fees - R-5		421			N/A			N/A
Shareholder reports - Class A		120			204			25
Shareholder reports - Class C		19			273			12
Shareholder reports - Class P		10			266			25
Shareholder reports - Institutional		6			158			36
Transfer agent fees - Class A		1,290			2,267			193
Transfer agent fees - Class B		25			N/A			N/A
Transfer agent fees - Class C		223			2,778			87
Transfer agent fees - Class P		108			2,701			174
Transfer agent fees - Institutional		219			1,063			426
Custodian fees		100			413			158
Directors' expenses		102			194			48
Dividends and interest on securities sold short		–			1,248			–
Professional fees		32			60			38
Other expenses		50			107			19
Total Gross Expenses		37,314			125,588			25,987
Less: Reimbursement from Manager - R-6		N/A			N/A			22
Total Net Expenses		37,314			125,588			25,965
Net Investment Income (Loss)		133,516			510,947			40,948

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		335,322			(106,165	)		98,534
Foreign currency transactions		(61	)		34,786			(349	)
Options and swaptions		–			(10,315	)		–
Short sales		–			(7,730	)		–
Swap agreements		–			5,196			–
Change in unrealized appreciation/depreciation of:
Investments		(444,660	)		(660,319	)		(38,147	)
Options and swaptions		–			44,593			–
Short sales		–			1			–
Swap agreements		–			(1,721	)		–
Translation of assets and liabilities in foreign currencies		5			(1,189	)		98
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(109,394	)		(702,863	)		60,136
Net Increase (Decrease) in Net Assets Resulting from Operations	$	24,122		$	(191,916	)	$	101,084


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

	Government & High
Amounts in thousands	Quality Bond Fund^(a)				High Yield Fund^(a)			High Yield Fund I
Net Investment Income (Loss)
Income:
Dividends	$	–		$	1,201		$	236
Interest		47,203			231,500			77,037
Total Income		47,203			232,701			77,273
Expenses:
Management and investment advisory fees		7,780			18,757			8,077
Distribution fees - Class A		758			2,843			81
Distribution fees - Class B		12			70			N/A
Distribution fees - Class C		570			4,534			N/A
Distribution fees - Class J		333			N/A			N/A
Distribution fees - R-1		9			N/A			N/A
Distribution fees - R-2		15			N/A			N/A
Distribution fees - R-3		41			N/A			N/A
Distribution fees - R-4		11			N/A			N/A
Administrative service fees - R-1		8			N/A			N/A
Administrative service fees - R-2		10			N/A			N/A
Administrative service fees - R-3		12			N/A			N/A
Administrative service fees - R-4		3			N/A			N/A
Administrative service fees - R-5		2			N/A			N/A
Registration fees - Class A		14			46			26
Registration fees - Class B		3			2			N/A
Registration fees - Class C		12			18			N/A
Registration fees - Class J		13			N/A			N/A
Registration fees - Class P		13			100			N/A
Registration fees - Institutional		33			96			32
Service fees - R-1		7			N/A			N/A
Service fees - R-2		13			N/A			N/A
Service fees - R-3		41			N/A			N/A
Service fees - R-4		27			N/A			N/A
Service fees - R-5		54			N/A			N/A
Shareholder reports - Class A		41			106			8
Shareholder reports - Class C		5			31			N/A
Shareholder reports - Class J		25			N/A			N/A
Shareholder reports - Class P		–			145			N/A
Shareholder reports - Institutional		18			118			7
Transfer agent fees - Class A		391			1,227			77
Transfer agent fees - Class B		6			13			N/A
Transfer agent fees - Class C		69			463			N/A
Transfer agent fees - Class J		155			N/A			N/A
Transfer agent fees - Class P		5			1,132			N/A
Transfer agent fees - Institutional		111			1,025			66
Custodian fees		7			11			30
Directors' expenses		29			65			23
Professional fees		44			54			52
Other expenses		14			47			16
Total Gross Expenses		10,714			30,903			8,495
Less: Reimbursement from Manager - Class A		–			–			60
Less: Reimbursement from Manager - Class B		8			–			N/A
Less: Reimbursement from Manager - Class C		15			–			N/A
Less: Reimbursement from Manager - Class P		4			–			N/A
Less: Reimbursement from Manager - R-1		3			N/A			N/A
Less: Reimbursement from Manager - R-2		5			N/A			N/A
Less: Reimbursement from Manager - R-3		16			N/A			N/A
Less: Reimbursement from Manager - R-4		10			N/A			N/A
Less: Reimbursement from Manager - R-5		21			N/A			N/A
Less: Reimbursement from Distributor - Class A		303			–			–
Less: Reimbursement from Distributor - Class J		73			N/A			N/A
Total Net Expenses		10,256			30,903			8,435
Net Investment Income (Loss)		36,947			201,798			68,838

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		8,348			(12,206	)		(19,909	)
Foreign currency transactions		–			5,793			–
Swap agreements		–			1,688			–
Change in unrealized appreciation/depreciation of:
Investments		(15,228	)		(229,157	)		(60,818	)
Swap agreements		–			(17	)		–
Translation of assets and liabilities in foreign currencies		–			(1,128	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(6,880	)		(235,027	)		(80,727	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	30,067		$	(33,229	)	$	(11,889	)


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

								International
					Inflation			Emerging
Amounts in thousands	Income Fund^(a)				Protection Fund			Markets Fund^(a)
Net Investment Income (Loss)
Income:
Dividends	$	–			$ –		$	42,448
Withholding tax		–			–			(5,215	)
Interest		113,272			11,705			1
Total Income		113,272			11,705			37,234
Expenses:
Management and investment advisory fees		14,738			5,593			18,469
Distribution fees - Class A		677			41			220
Distribution fees - Class B		19			N/A			10
Distribution fees - Class C		663			40			103
Distribution fees - Class J		235			20			290
Distribution fees - R-1		48			2			11
Distribution fees - R-2		8			2			14
Distribution fees - R-3		79			13			31
Distribution fees - R-4		25			2			12
Administrative service fees - R-1		38			2			9
Administrative service fees - R-2		5			1			9
Administrative service fees - R-3		22			4			9
Administrative service fees - R-4		8			1			3
Administrative service fees - R-5		5			–			3
Registration fees - Class A		16			13			16
Registration fees - Class B		4			N/A			1
Registration fees - Class C		13			12			12
Registration fees - Class J		15			12			12
Registration fees - Class P		15			N/A			12
Registration fees - Institutional		39			45			22
Registration fees - R-6		20			N/A			N/A
Service fees - R-1		34			2			8
Service fees - R-2		6			1			12
Service fees - R-3		79			13			31
Service fees - R-4		62			5			30
Service fees - R-5		112			10			66
Shareholder reports - Class A		31			3			35
Shareholder reports - Class C		8			–			4
Shareholder reports - Class J		12			3			35
Shareholder reports - Class P		2			N/A			1
Shareholder reports - Institutional		19			1			19
Transfer agent fees - Class A		333			35			248
Transfer agent fees - Class B		6			N/A			7
Transfer agent fees - Class C		98			15			41
Transfer agent fees - Class J		111			24			187
Transfer agent fees - Class P		22			N/A			2
Transfer agent fees - Institutional		218			3			144
Custodian fees		4			26			760
Directors' expenses		56			27			30
Professional fees		44			43			63
Other expenses		22			10			25
Total Gross Expenses		17,971			6,024			21,016
Less: Reimbursement from Manager - Class A		–			8			68
Less: Reimbursement from Manager - Class B		1			N/A			3
Less: Reimbursement from Manager - Class C		–			17			–
Less: Reimbursement from Manager - Class P		–			N/A			13
Less: Reimbursement from Manager - R-6		19			N/A			N/A
Less: Reimbursement from Distributor - Class J		27			2			32
Total Net Expenses		17,924			5,997			20,900
Net Investment Income (Loss)		95,348			5,708			16,334

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		18,125			(21,358	)		(32,428	)
Foreign currency transactions		–			15,020			(3,323	)
Futures contracts		–			(5,771	)		–
Options and swaptions		–			6,527			–
Swap agreements		–			(1,046	)		–
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $0, $0 and $389, respectively) .		(102,832	)		(38,203	)		(162,970	)
Futures contracts		–			448			–
Options and swaptions		–			1,386			–
Swap agreements		–			(43	)		–
Translation of assets and liabilities in foreign currencies		–			599			301
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(84,707	)		(42,441	)		(198,420	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	10,641		$	(36,733	)	$	(182,086	)


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

					LargeCap			LargeCap
Amounts in thousands	International Fund I				Growth Fund^(a)			Growth Fund I^(b)
Net Investment Income (Loss)
Income:
Dividends	$	8,255		$	29,519		$	59,719
Withholding tax		(589	)		(35	)		(61	)
Interest		18			7			97
Total Income		7,684			29,491			59,755
Expenses:
Management and investment advisory fees		3,266			20,429			44,887
Distribution fees - Class A		7			955			24
Distribution fees - Class B		N/A			18			N/A
Distribution fees - Class C		N/A			175			N/A
Distribution fees - Class J		N/A			170			279
Distribution fees - R-1		15			21			30
Distribution fees - R-2		9			16			57
Distribution fees - R-3		12			48			387
Distribution fees - R-4		4			16			96
Administrative service fees - R-1		12			17			24
Administrative service fees - R-2		6			11			38
Administrative service fees - R-3		3			13			108
Administrative service fees - R-4		1			5			29
Administrative service fees - R-5		1			7			33
Registration fees - Class A		14			20			16
Registration fees - Class B		N/A			2			N/A
Registration fees - Class C		N/A			11			N/A
Registration fees - Class J		N/A			13			14
Registration fees - Class P		15			15			16
Registration fees - Institutional		16			11			22
Registration fees - R-6		N/A			N/A			20
Service fees - R-1		10			15			21
Service fees - R-2		8			13			48
Service fees - R-3		12			48			387
Service fees - R-4		11			40			241
Service fees - R-5		24			178			828
Shareholder reports - Class A		1			83			2
Shareholder reports - Class C		N/A			3			N/A
Shareholder reports - Class J		N/A			12			23
Shareholder reports - Institutional		18			1			115
Transfer agent fees - Class A		12			683			23
Transfer agent fees - Class B		N/A			9			N/A
Transfer agent fees - Class C		N/A			35			N/A
Transfer agent fees - Class J		N/A			104			142
Transfer agent fees - Class P		1			8			1
Transfer agent fees - Institutional		97			636			1,451
Custodian fees		43			2			60
Directors' expenses		9			60			129
Professional fees		46			30			33
Other expenses		6			25			65
Total Gross Expenses		3,679			23,958			49,649
Less: Reimbursement from Manager		–			–			1,192
Less: Reimbursement from Manager - Class A		20			–			1
Less: Reimbursement from Manager - Class P		–			2			15
Less: Reimbursement from Manager - R-6		N/A			N/A			21
Less: Reimbursement from Distributor - Class J		N/A			20			34
Total Net Expenses		3,659			23,936			48,386
Net Investment Income (Loss)		4,025			5,555			11,369

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		(20,118	)		341,289			986,346
Foreign currency transactions		(650	)		–			–
Futures contracts		(485	)		–			(5,510	)
Change in unrealized appreciation/depreciation of:
Investments		19,796			(139,895	)		(283,158	)
Futures contracts		810			–			7,732
Translation of assets and liabilities in foreign currencies		15			–			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(632	)		201,394			705,410
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,393		$	206,949		$	716,779


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

	LargeCap S&P 500				LargeCap
Amounts in thousands	Index Fund				Value Fund^(a)			MidCap Fund^(a)
Net Investment Income (Loss)
Income:
Dividends	$	93,231		$	68,530		$	95,696
Withholding tax		–			–			(1,231	)
Interest		43			3			6
Total Income		93,274			68,533			94,471
Expenses:
Management and investment advisory fees		6,868			12,429			61,154
Distribution fees - Class A		388			519			4,951
Distribution fees - Class B		N/A			5			42
Distribution fees - Class C		314			78			3,603
Distribution fees - Class J		1,301			181			734
Distribution fees - R-1		71			5			163
Distribution fees - R-2		104			8			123
Distribution fees - R-3		567			11			402
Distribution fees - R-4		224			3			168
Administrative service fees - R-1		57			4			130
Administrative service fees - R-2		69			5			82
Administrative service fees - R-3		159			3			112
Administrative service fees - R-4		67			1			51
Administrative service fees - R-5		41			1			29
Registration fees - Class A		21			14			54
Registration fees - Class B		N/A			1			1
Registration fees - Class C		14			11			5
Registration fees - Class J		22			14			12
Registration fees - Class P		N/A			16			147
Registration fees - Institutional		46			18			221
Service fees - R-1		51			4			117
Service fees - R-2		87			7			102
Service fees - R-3		567			11			402
Service fees - R-4		558			6			421
Service fees - R-5		1,021			20			722
Shareholder reports - Class A		44			57			123
Shareholder reports - Class C		4			2			20
Shareholder reports - Class J		64			18			36
Shareholder reports - Class P		N/A			–			304
Shareholder reports - Institutional		16			23			344
Transfer agent fees - Class A		396			324			2,596
Transfer agent fees - Class B		N/A			4			9
Transfer agent fees - Class C		45			21			395
Transfer agent fees - Class J		435			82			164
Transfer agent fees - Class P		N/A			1			1,932
Transfer agent fees - Institutional		169			148			3,166
Custodian fees		17			5			8
Directors' expenses		83			51			176
Professional fees		31			30			36
Other expenses		83			21			106
Total Gross Expenses		14,004			14,162			83,363
Less: Reimbursement from Manager - Class B		N/A			3			–
Less: Reimbursement from Manager - Class C		18			13			–
Less: Reimbursement from Manager - Class P		N/A			16			–
Less: Reimbursement from Distributor - Class J		286			21			84
Total Net Expenses		13,700			14,109			83,279
Net Investment Income (Loss)		79,574			54,424			11,192

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		132,900			268,829			699,848
Futures contracts		614			(415	)		–
Change in unrealized appreciation/depreciation of:
Investments		(16,747	)		(207,536	)		(139,834	)
Futures contracts		2,229			(452	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		118,996			60,426			560,014
Net Increase (Decrease) in Net Assets Resulting from Operations	$	198,570		$	114,850		$	571,206


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

		MidCap			Money		Principal Capital
Amounts in thousands	Value Fund III^(a)				Market Fund^(b)		Appreciation Fund^(b)
Net Investment Income (Loss)
Income:
Dividends	$	19,805		$	–	$	51,050
Withholding tax		–			–		(50	)
Interest		19			1,983		7
Total Income		19,824			1,983		51,007
Expenses:
Management and investment advisory fees		6,578			3,967		11,918
Distribution fees - Class A		18			N/A		2,209
Distribution fees - Class B		N/A			10		61
Distribution fees - Class C		N/A			164		464
Distribution fees - Class J		280			603		N/A
Distribution fees - R-1		4			N/A		11
Distribution fees - R-2		6			N/A		9
Distribution fees - R-3		32			N/A		77
Distribution fees - R-4		17			N/A		21
Administrative service fees - R-1		3			N/A		9
Administrative service fees - R-2		4			N/A		6
Administrative service fees - R-3		9			N/A		22
Administrative service fees - R-4		5			N/A		6
Administrative service fees - R-5		3			N/A		4
Registration fees - Class A		15			73		24
Registration fees - Class B		N/A			2		2
Registration fees - Class C		N/A			12		11
Registration fees - Class J		12			27		N/A
Registration fees - Class P		14			N/A		14
Registration fees - Institutional		36			35		20
Registration fees - R-6		20			N/A		N/A
Service fees - R-1		3			N/A		8
Service fees - R-2		5			N/A		7
Service fees - R-3		32			N/A		77
Service fees - R-4		41			N/A		53
Service fees - R-5		69			N/A		113
Shareholder reports - Class A		1			56		125
Shareholder reports - Class C		N/A			2		8
Shareholder reports - Class J		20			82		N/A
Shareholder reports - Class P		–			N/A		3
Shareholder reports - Institutional		2			3		21
Transfer agent fees - Class A		23			481		1,080
Transfer agent fees - Class B		N/A			4		18
Transfer agent fees - Class C		N/A			23		72
Transfer agent fees - Class J		105			313		N/A
Transfer agent fees - Class P		–			N/A		27
Transfer agent fees - Institutional		133			15		127
Custodian fees		19			18		17
Directors' expenses		20			20		49
Professional fees		28			43		39
Other expenses		8			14		25
Total Gross Expenses		7,565			5,967		16,757
Less: Reimbursement from Manager		144			–		–
Less: Reimbursement from Manager - Class A		9			1,577		–
Less: Reimbursement from Manager - Class B		N/A			16		–
Less: Reimbursement from Manager - Class C		N/A			72		–
Less: Reimbursement from Manager - Class J		–			1,206		N/A
Less: Reimbursement from Manager - Class P		14			N/A		–
Less: Reimbursement from Manager - Institutional		–			631		–
Less: Reimbursement from Manager - R-6		20			N/A		N/A
Less: Reimbursement from Distributor - Class B		N/A			2		–
Less: Reimbursement from Distributor - Class C		N/A			164		–
Less: Reimbursement from Distributor - Class J		32			316		N/A
Total Net Expenses		7,346			1,983		16,757
Net Investment Income (Loss)		12,478			–		34,250

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		42,686			21		139,501
Futures contracts		107			–		–
Change in unrealized appreciation/depreciation of:
Investments		(45,653	)		–		(42,417	)
Futures contracts		787			–		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(2,073	)		21		97,084
Net Increase (Decrease) in Net Assets Resulting from Operations	$	10,405		$	21	$	131,334


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

	Real Estate			Short-Term
Amounts in thousands	Securities Fund^(a)			Income Fund			SmallCap Fund^(a),(b)
Net Investment Income (Loss)
Income:
Dividends	$	55,798		$ –		$	5,878
Interest		5		55,609			1
Total Income		55,803		55,609			5,879
Expenses:
Management and investment advisory fees		18,890		11,130			4,206
Distribution fees - Class A		687		417			527
Distribution fees - Class B		12		N/A			8
Distribution fees - Class C		390		868			189
Distribution fees - Class J		475		300			520
Distribution fees - R-1		27		4			9
Distribution fees - R-2		53		6			11
Distribution fees - R-3		154		29			19
Distribution fees - R-4		79		14			7
Administrative service fees - R-1		22		4			7
Administrative service fees - R-2		35		4			8
Administrative service fees - R-3		43		8			5
Administrative service fees - R-4		24		4			2
Administrative service fees - R-5		17		1			2
Registration fees - Class A		45		10			25
Registration fees - Class B		1		N/A			–
Registration fees - Class C		14		18			13
Registration fees - Class J		19		15			14
Registration fees - Class P		19		16			15
Registration fees - Institutional		53		34			15
Service fees - R-1		19		3			7
Service fees - R-2		44		5			9
Service fees - R-3		154		29			19
Service fees - R-4		198		36			17
Service fees - R-5		432		26			44
Shareholder reports - Class A		86		14			55
Shareholder reports - Class C		6		9			5
Shareholder reports - Class J		34		16			40
Shareholder reports - Class P		9		4			–
Shareholder reports - Institutional		115		21			2
Transfer agent fees - Class A		508		278			392
Transfer agent fees - Class B		5		N/A			5
Transfer agent fees - Class C		76		104			40
Transfer agent fees - Class J		238		125			211
Transfer agent fees - Class P		64		59			1
Transfer agent fees - Institutional		824		305			11
Custodian fees		3		8			7
Directors' expenses		40		48			11
Professional fees		30		44			27
Other expenses		30		23			9
Total Gross Expenses		23,974		14,039			6,514
Less: Reimbursement from Manager - Class B		2		N/A			2
Less: Reimbursement from Manager - Class P		–		–			13
Less: Reimbursement from Manager - R-4		–		1			–
Less: Reimbursement from Distributor - Class J		53		67			61
Total Net Expenses		23,919		13,971			6,438
Net Investment Income (Loss)		31,884		41,638			(559	)

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		133,162		459			31,120
Futures contracts		–		–			496
Change in unrealized appreciation/depreciation of:
Investments		(35,358	)	(13,080	)		2,220
Futures contracts		–		–			(240	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		97,804		(12,621	)		33,596
Net Increase (Decrease) in Net Assets Resulting from Operations	$	129,688		$29,017		$	33,037


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015
	SmallCap				Tax-Exempt
Amounts in thousands	Value Fund II^(a)				Bond Fund^(b),(c),(d)
Net Investment Income (Loss)
Income:
Dividends	$	21,610		$	–
Withholding tax		(5	)		–
Interest		32			11,282
Total Income		21,637			11,282
Expenses:
Management and investment advisory fees		13,517			1,043
Distribution fees - Class A		3			547
Distribution fees - Class B		N/A			2
Distribution fees - Class C		N/A			118
Distribution fees - Class J		49			N/A
Distribution fees - R-1		7			N/A
Distribution fees - R-2		12			N/A
Distribution fees - R-3		30			N/A
Distribution fees - R-4		13			N/A
Administrative service fees - R-1		5			N/A
Administrative service fees - R-2		8			N/A
Administrative service fees - R-3		8			N/A
Administrative service fees - R-4		4			N/A
Administrative service fees - R-5		3			N/A
Registration fees - Class A		14			26
Registration fees - Class B		N/A			3
Registration fees - Class C		N/A			14
Registration fees - Class J		11			N/A
Registration fees - Class P		14			15
Registration fees - Institutional		16			19
Registration fees - R-6		20			N/A
Service fees - R-1		5			N/A
Service fees - R-2		10			N/A
Service fees - R-3		30			N/A
Service fees - R-4		33			N/A
Service fees - R-5		58			N/A
Shareholder reports - Class A		–			13
Shareholder reports - Class C		N/A			2
Shareholder reports - Class J		5			N/A
Shareholder reports - Institutional		12			–
Transfer agent fees - Class A		11			102
Transfer agent fees - Class B		N/A			2
Transfer agent fees - Class C		N/A			19
Transfer agent fees - Class J		33			N/A
Transfer agent fees - Institutional		111			–
Custodian fees		48			2
Directors' expenses		26			6
Interest expense and fees		–			44
Professional fees		28			42
Other expenses		16			5
Total Gross Expenses		14,160			2,024
Less: Reimbursement from Manager		330			–
Less: Reimbursement from Manager - Class A		21			–
Less: Reimbursement from Manager - Class B		N/A			5
Less: Reimbursement from Manager - Class C		N/A			19
Less: Reimbursement from Manager - Class P		14			14
Less: Reimbursement from Manager - Institutional		–			20
Less: Reimbursement from Manager - R-6		21			N/A
Less: Reimbursement from Distributor - Class J		6			N/A
Total Net Expenses		13,768			1,966
Net Investment Income (Loss)		7,869			9,316

Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
Net realized gain (loss) from:
Investment transactions		172,246			299
Futures contracts		3,031			–
Change in unrealized appreciation/depreciation of:
Investments		(167,993	)		(2,628	)
Futures contracts		(1,815	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		5,469			(2,329	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	13,338		$	6,987


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands														California Municipal Fund
														Year Ended		Year Ended
														October 31, 2015		October 31, 2014
Operations
Net investment income (loss)													$	8,590		$	8,041
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements														123			(1,654	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies														(856	)		15,116
					Net Increase (Decrease) in Net Assets Resulting from Operations									7,857			21,503

Dividends and Distributions to Shareholders
From net investment income														(8,905	)		(7,623	)
											Total Dividends and Distributions			(8,905	)		(7,623	)

Capital Share Transactions
Net increase (decrease) in capital share transactions														(2,082	)		40,983
									Total Increase (Decrease) in Net Assets					(3,130	)		54,863

Net Assets
Beginning of period														227,567			172,704
End of period (including undistributed net investment income as set forth below)													$	224,437		$	227,567
Undistributed (overdistributed) net investment income (loss)													$	406		$	705

			Class A		Class B^(a)		Class C		Class P		Institutional
Capital Share Transactions:
Year Ended October 31, 2015^(b),(c)
Dollars:
Sold		$	52,002	$	– $		7,057	$	6,986	$	140
Reinvested			7,479		2		376		22		1
Redeemed			(72,544	)	(392	)	(2,909	)	(302	)	–
Net Increase (Decrease)	$	(13,063		) $	(390	) $	4,524	$	6,706	$	141
Shares:
Sold			4,945		–		670		669		14
Reinvested			712		–		36		2		–
Redeemed			(6,901	)	(37	)	(276	)	(29	)	–
Net Increase (Decrease)			(1,244	)	(37	)	430		642		14
Year Ended October 31, 2014
Dollars:
Sold		$	71,192	$	2	$	4,564		N/A		N/A
Reinvested			6,622		19		274		N/A		N/A
Redeemed			(38,829	)	(562	)	(2,299	)	N/A		N/A
Net Increase (Decrease)		$	38,985	$	(541	) $	2,539		N/A		N/A
Shares:
Sold			6,942		–		449		N/A		N/A
Reinvested			652		2		27		N/A		N/A
Redeemed			(3,849	)	(55	)	(228	)	N/A		N/A
Net Increase (Decrease)			3,745		(53	)	248		N/A		N/A

Distributions:
Year Ended October 31, 2015^(b),(c)
From net investment income $			(8,462	) $	(2	) $	(418	) $	(22	) $	(1	)
From net realized gain on
investments			–		–		–		–		–
Total Dividends and Distributions $			(8,462	) $	(2	) $	(418	) $	(22	) $	(1	)
Year Ended October 31, 2014
From net investment income $			(7,308	) $	(19	) $	(296	)	N/A		N/A
From net realized gain on
investments			–		–		–		N/A		N/A
Total Dividends and Distributions $			(7,308	) $	(19	) $	(296	)	N/A		N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												Core Plus Bond Fund^(a)
																										Year Ended						Year Ended
																										October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																										$		107,330				$		66,246
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																														1,227				28,537
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														(64,994	)			16,182
				Net Increase (Decrease) in Net Assets Resulting from Operations																										43,563				110,965

Dividends and Distributions to Shareholders
From net investment income																												(110,080			)			(73,012	)
													Total Dividends and Distributions															(110,080			)			(73,012	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												372,519						1,568,219
										Total Increase (Decrease) in Net Assets																		306,002						1,606,172

Net Assets
Beginning of period																												3,949,559						2,343,387
End of period (including undistributed net investment income as set forth below)																										$		4,255,561				$		3,949,559
Undistributed (overdistributed) net investment income (loss)																										$				1,553		$		1,288

		Class A		Class B^(b)		Class C				Class J			Institutional					R-1				R-2				R-3				R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	10,738	$	10	$	1,535		$		11,326		$	1,379,269			$	1,227			$		2,432		$		5,568		$		6,341	$	12,311
Issued in acquisitions		–		–		–				–			44,389				2,471					3,127				9,416				6,309		17,134
Reinvested		2,126		6		83				3,559			101,264				100					219				604				564		1,342

Redeemed		(17,019	)	(1,221	)	(1,146	)			(21,163)			(1,159,262)				(1,880		)			(5,348	)			(11,782	)			(16,229	)	(15,901	)
Net Increase (Decrease)	$	(4,155	) $	(1,205	) $	472		$		(6,278)			$ 365,660		$		1,918			$		430		$		3,806		$		(3,015	) $	14,886
Shares:
Sold		982		1		141				1,030			126,125				111					226				514				572		1,134
Issued in acquisitions		–		–		–				–			4,050				226					288				864				569		1,571
Reinvested		194		1		7				323			9,264				9					20				56				51		123
Redeemed		(1,560	)	(111	)	(105	)			(1,928	)		(106,128	)			(172		)			(496	)			(1,086	)			(1,469	)	(1,464	)
Net Increase (Decrease)		(384	)	(109	)	43				(575	)		33,311				174					38				348				(277	)	1,364
Year Ended October 31, 2014
Dollars:
Sold	$	10,462	$	5	$	949		$		13,189		$	1,668,533			$	977			$		3,424		$		5,145		$		6,468	$	9,858
Reinvested		2,351		21		92				3,877			63,712				100					264				661				652		1,138
Redeemed		(19,329	)	(468	)	(1,450	)			(26,874	)		(133,460	)			(2,469		)			(8,049	)			(11,688	)			(10,773	)	(9,099	)
Net Increase (Decrease)	$	(6,516	) $	(442	) $	(409)			$	(9,808)			$ 1,598,785				$(1,392)				$	(4,361)			$	(5,882)			$	(3,653	) $	1,897
Shares:
Sold		964		–		87				1,203			152,458				90					316				476				586		912
Reinvested		216		2		9				353			5,844				9					24				61				59		105
Redeemed		(1,779	)	(43	)	(134	)			(2,457	)		(12,260	)			(226		)			(746	)			(1,080	)			(979	)	(842	)
Net Increase (Decrease)		(599	)	(41	)	(38	)			(901	)		146,042				(127		)			(406	)			(543	)			(334	)	175

Distributions:
Year Ended October 31, 2015
From net investment income $		(2,211	) $	(8	) $	(90)			$	(3,577)			$ (101,362)				$(100				)	$(219			)	$(604			)	$(565	)	$(1,344	)
From net realized gain on
investments		–		–		–				–			–				–					–				–				–		–
Total Dividends and Distributions $		(2,211	) $	(8	) $	(90)			$	(3,577)			$ (101,362)				$(100				)	$(219			)	$(604			)	$(565	) $	(1,344	)
Year Ended October 31, 2014
From net investment income $		(2,461	) $	(22	) $	(99)			$	(3,900)			$(63,715)		$		(100				) $	(264			) $	(661			) $	(652	) $	(1,138	)
From net realized gain on
investments		–		–		–				–			–				–					–				–				–		–
Total Dividends and Distributions $		(2,461	) $	(22	) $	(99)			$	(3,900)			$ (63,715)		$		(100				) $	(264			) $	(661			) $	(652	) $	(1,138	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								Diversified International Fund
																								Year Ended							Year Ended
																								October 31, 2015							October 31, 2014
Operations
Net investment income (loss)																								$				94,811			$		80,393
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												(35,179	)		225,262
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																										(228,050			)		(140,870			)
					Net Increase (Decrease) in Net Assets Resulting from Operations																					(168,418			)		164,785

Dividends and Distributions to Shareholders
From net investment income																												(78,901	)				(95,806	)
															Total Dividends and Distributions													(78,901	)				(95,806	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										910,515					540,865
													Total Increase (Decrease) in Net Assets													663,196					609,844

Net Assets
Beginning of period																										5,514,641					4,904,797
End of period (including undistributed net investment income as set forth below)																								$		6,177,837				$	5,514,641
Undistributed (overdistributed) net investment income (loss)																								$				73,133			$		56,939

			Class A		Class B^(a)			Class C					Class J		Class P			Institutional				R-1		R-2				R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold		$	25,724	$	38	$		4,203			$		16,153	$	1,856		$	1,952,349			$	823	$	980		$		5,876	$		10,398	$	12,811
Reinvested			2,335		–			30					2,193		58			71,970				34		71				445			450		974

Redeemed			(32,336	)	(3,857		)	(2,408	)				(30,601	)	(2,235)			(1,070,417)				(1,369	)	(3,663	)			(18,052	)		(14,028	)	(20,290	)
Net Increase (Decrease)		$	(4,277	) $	(3,819		) $	1,825		$	(12,255			) $	(321)			$ 953,902		$		(512	) $	(2,612)				$ (11,731)			(3,180	) $	(6,505	)
Shares:
Sold			2,160		3			349					1,365		158			163,868				69		83				500			854		1,084
Reinvested			202		–			3					192		5			6,258				3		6				38			39		84
Redeemed			(2,733	)	(318		)	(205	)				(2,620	)	(192	)		(92,279	)			(117	)	(313	)			(1,542	)		(1,198	)	(1,728	)
Net Increase (Decrease)			(371	)	(315		)	147					(1,063	)	(29	)		77,847				(45	)	(224	)			(1,004	)		(305	)	(560	)
Year Ended October 31, 2014
Dollars:
Sold		$	20,149	$	47	$		3,199			$		17,207	$	3,568		$	735,763		$		940	$	1,757		$		4,913	$		6,851	$	15,333
Reinvested			3,534		3			111					3,246		29			85,163				69		144				808			821		1,444
Redeemed			(35,806	)	(1,547		)	(2,792	)				(27,473	)	(854	)		(238,628	)			(2,129	)	(4,557	)			(12,231	)		(18,147	)	(20,070	)
Net Increase (Decrease)	$	(12,123		) $	(1,497		) $	518			$		(7,020	) $	2,743		$	582,298		$		(1,120	) $	(2,656)			$	(6,510)			$ (10,475)		(3,293	)
Shares:
Sold			1,687		4			268					1,447		306			61,487				79		147				412			563		1,281
Reinvested			297		–			9					276		2			7,205				6		12				68			69		121
Redeemed			(2,981	)	(128		)	(232	)				(2,320	)	(72	)		(19,953	)			(178	)	(385	)			(1,028	)		(1,505	)	(1,647	)
Net Increase (Decrease)			(997	)	(124		)	45					(597	)	236			48,739				(93	)	(226	)			(548	)		(873	)	(245	)

Distributions:
Year Ended October 31, 2015
From net investment income $			(2,626	) $	–	$		(31				) $	(2,194	) $	(72) $			(72,004	)	$		(34	) $	(71			) $	(445	) $		(450	) $	(974	)
From net realized gain on
investments			–		–			–					–		–			–				–		–				–			–		–
Total Dividends and Distributions $			(2,626	) $	–	$		(31				) $	(2,194	) $	(72) $			(72,004	)	$		(34	) $	(71			) $	(445	) $		(450	) $	(974	)
Year Ended October 31, 2014
From net investment income $			(3,910	) $	(3		) $	(116				) $	(3,248	) $	(36) $			(85,207	)	$		(69	) $	(144			) $	(808	) $		(821	) $	(1,444	)
From net realized gain on
investments			–		–			–					–		–			–				–		–				–			–		–
Total Dividends and Distributions $			(3,910	) $	(3		) $	(116				) $	(3,248	) $	(36) $			(85,207	)	$		(69	) $	(144			) $	(808	) $		(821	) $	(1,444	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								Equity Income Fund
																						Year Ended								Year Ended
																						October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																						$		133,516						$		141,668
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																								335,261								145,085
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																								(444,655			)					545,843
				Net Increase (Decrease) in Net Assets Resulting from Operations																						24,122						832,596

Dividends and Distributions to Shareholders
From net investment income																								(126,046			)					(120,648	)
													Total Dividends and Distributions											(126,046			)					(120,648	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																								(403,730			)					(8,569	)
										Total Increase (Decrease) in Net Assets														(505,654			)					703,379

Net Assets
Beginning of period																								5,983,963								5,280,584
End of period (including undistributed net investment income as set forth below)																						$		5,478,309						$		5,983,963
Undistributed (overdistributed) net investment income (loss)																						$				32,422				$		44,589

		Class A		Class B^(a)		Class C				Class P			Institutional			R-1				R-2		R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	111,135	$	96	$	28,651		$		32,398		$	626,047		$	813		$		1,394	$	7,204		$		14,540		$		19,274
Reinvested		18,390		77		2,082				2,530			95,201			49				74		1,277				1,131				3,480

Redeemed		(160,016	)	(32,731	)	(28,889	)			(37,090)			(1,051,885)			(760	)			(2,832	)	(19,916	)			(12,386	)			(23,068	)
Net Increase (Decrease)	$	(30,491) $		(32,558) $		1,844		$		(2,162)			$ (330,637) $			102		$		(1,364) $		(11,435)				$3,285		$		(314	)
Shares:
Sold		4,171		3		1,108				1,225			23,485			31				53		273				549				732
Reinvested		709		3		82				98			3,667			2				3		49				44				134
Redeemed		(6,082	)	(1,213	)	(1,122	)			(1,413	)		(39,814	)		(29	)			(108	)	(754	)			(474	)			(866	)
Net Increase (Decrease)		(1,202	)	(1,207	)	68				(90	)		(12,662	)		4				(52	)	(432	)			119				–
Year Ended October 31, 2014
Dollars:
Sold	$	135,913	$	459	$	32,125		$		54,721		$	227,886		$	528		$		2,067	$	12,309		$		8,673		$		24,347
Reinvested		17,588		399		1,781				1,832			91,461			48				110		1,345				1,058				3,146
Redeemed		(200,992	)	(27,126	)	(25,429	)			(21,542	)		(296,228	)		(1,560	)			(4,758	)	(15,112	)			(12,788	)			(20,830	)
Net Increase (Decrease)	$	(47,491) $		(26,268) $		8,477		$		35,011		$	23,119		$	(984)			$	(2,581	) $	(1,458)			$	(3,057)			$	6,663
Shares:
Sold		5,525		19		1,328				2,181			9,180			21				83		496				353				980
Reinvested		702		16		73				73			3,644			2				4		54				42				125
Redeemed		(8,098	)	(1,098	)	(1,048	)			(869	)		(11,977	)		(62	)			(190	)	(605	)			(508	)			(841	)
Net Increase (Decrease)		(1,871	)	(1,063	)	353				1,385			847			(39	)			(103	)	(55	)			(113	)			264

Distributions:
Year Ended October 31, 2015
From net investment income		$ (19,095) $		(78	) $	(2,458)			$	(2,943)			$ (95,434)		$	(49			) $	(101	) $	(1,277			) $	(1,131			) $	(3,480	)
From net realized gain on
investments		–		–		–				–			–			–				–		–				–				–
Total Dividends and Distributions		$ (19,095) $		(78	) $	(2,458)			$	(2,943)			$ (95,434)		$	(49			) $	(101	) $	(1,277			) $	(1,131			) $	(3,480	)
Year Ended October 31, 2014
From net investment income		$(18,209) $		(408	) $	(2,143)			$	(2,217)			$ (91,938)		$	(49			) $	(134	) $	(1,345			) $	(1,058			) $	(3,147	)
From net realized gain on
investments		–		–		–				–			–			–				–		–				–				–
Total Dividends and Distributions		$ (18,209) $		(408	) $	(2,143)			$	(2,217)			$ (91,938)		$	(49			) $	(134	) $	(1,345			) $	(1,058			) $	(3,147	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands										Global Diversified Income Fund
										Year Ended		Year Ended
										October 31, 2015		October 31, 2014
Operations
Net investment income (loss)									$	510,947		$	371,971
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements										(84,228	)		255,197
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies										(618,635	)		22,079
					Net Increase (Decrease) in Net Assets Resulting from Operations					(191,916	)		649,247

Dividends and Distributions to Shareholders
From net investment income										(472,424	)		(363,272	)
From net realized gain on investments										(239,376	)		–
							Total Dividends and Distributions			(711,800	)		(363,272	)

Capital Share Transactions
Net increase (decrease) in capital share transactions										2,331,799			1,468,629
							Total Increase (Decrease) in Net Assets			1,428,083			1,754,604

Net Assets
Beginning of period										9,947,234			8,192,630
End of period (including undistributed net investment income as set forth below)									$	11,375,317		$	9,947,234
Undistributed (overdistributed) net investment income (loss)									$	119,525		$	84,319
		Class A			Class C	Class P	Institutional
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	649,916		$	490,528	$ 1,206,340	$ 2,634,540
Reinvested		143,314			126,149	145,684	170,167

Redeemed		(702,951	)		(476,761)	(1,459,577)	(595,550	)
Net Increase (Decrease)	$	90,279		$	139,916	$ (107,553)	$ 2,209,157
Shares:
Sold		45,982			34,888	85,866	185,335
Reinvested		10,256			9,079	10,476	12,249
Redeemed		(50,147	)		(34,227)	(103,197)	(42,617	)
Net Increase (Decrease)		6,091			9,740	(6,855)	154,967
Year Ended October 31, 2014
Dollars:
Sold	$	870,398		$	665,254	$ 1,925,041	$ 634,890
Reinvested		96,008			65,238	79,115	47,857

Redeemed		(1,257,572	)		(422,045)	(1,027,399)	(208,156	)
Net Increase (Decrease)	$	(291,166)			$ 308,447	$ 976,757	$474,591
Shares:
Sold		59,379			45,575	130,738	43,408
Reinvested		6,600			4,505	5,446	3,288
Redeemed		(85,592	)		(29,153)	(70,823)	(14,375	)
Net Increase (Decrease)		(19,613	)		20,927	65,361	32,321

Distributions:
Year Ended October 31, 2015
From net investment income$		(106,393)			$ (99,212)	$ (139,160)	$ (127,659)
From net realized gain on
investments		(58,492	)		(66,073)	(69,782)	(45,029	)
Total Dividends and Distributions		$(164,885)			$ (165,285)	$ (208,942)	$ (172,688)
Year Ended October 31, 2014
From net investment income		$ (109,792)			$ (87,765)	$ (116,538)	$ (49,177)
From net realized gain on
investments		–			–	–	–
Total Dividends and Distributions		$ (109,792) )			$ (87,765	$ (116,538)	$ (49,177)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				Global Real Estate Securities Fund
																				Year Ended			Year Ended
																				October 31, 2015			October 31, 2014
Operations
Net investment income (loss)																			$	40,948		$	28,858
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																				98,185			35,031
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																				(38,049	)		156,170
						Net Increase (Decrease) in Net Assets Resulting from Operations														101,084			220,059

Dividends and Distributions to Shareholders
From net investment income																				(73,436	)		(39,949	)
From net realized gain on investments																				(14,594	)		(52,789	)
																	Total Dividends and Distributions			(88,030	)		(92,738	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																				606,405			591,598
														Total Increase (Decrease) in Net Assets						619,459			718,919

Net Assets
Beginning of period																				2,335,218			1,616,299
End of period (including undistributed net investment income as set forth below)																			$	2,954,677		$	2,335,218
Undistributed (overdistributed) net investment income (loss)																			$	(8,869	)	$	(5,820	)

		Class A				Class C					Class P			Institutional			R-6
Capital Share Transactions:
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	97,992		$		23,206		$	183,916				$	956,233		$	41
Reinvested		3,317				1,311					3,380			73,723			–
Redeemed		(56,691	)			(11,857	)				(70,200	)		(597,964	)		(2	)
Net Increase (Decrease)	$	44,618		$		12,660		$	117,096				$	431,992		$	39
Shares:
Sold		11,199				2,700					19,853			102,278			4
Reinvested		379				153					364			7,926			–
Redeemed		(6,524	)			(1,397	)				(7,682	)		(63,765	)		–
Net Increase (Decrease)		5,054				1,456					12,535			46,439			4
Year Ended October 31, 2014
Dollars:
Sold	$	54,659		$		24,488			$		85,308		$	531,471			N/A
Reinvested		3,975				1,293					2,678			80,250			N/A
Redeemed		(33,165	)			(5,854	)				(34,861	)		(118,644	)		N/A
Net Increase (Decrease)	$	25,469		$		19,927			$		53,125		$	493,077			N/A
Shares:
Sold		6,773				3,084					9,818			61,008			N/A
Reinvested		511				172					323			9,706			N/A
Redeemed		(4,054	)			(734	)				(4,092	)		(13,766	)		N/A
Net Increase (Decrease)		3,230				2,522					6,049			56,948			N/A

Distributions:
Year Ended October 31, 2015^(a)
From net investment income		$(2,966)			$	(1,074)				$	(3,465)			$ (65,931)		$	–
From net realized gain on
investments		(655	)			(311	)				(657	)		(12,971	)		–
Total Dividends and Distributions		$(3,621)				(1,385)				$	(4,122)			$ (78,902)		$	–
Year Ended October 31, 2014
From net investment income		$(1,614)			$	(413)				$	(1,497)			$ (36,425)			N/A
From net realized gain on
investments		(2,514	)			(994	)				(1,879	)		(47,402	)		N/A
Total Dividends and Distributions		$(4,128)			$	(1,407)				$	(3,376)			$ (83,827)			N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



																							Government & High
Amounts in thousands																									Quality Bond Fund
																					Year Ended								Year Ended
																					October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																					$				36,947				$			40,336
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									8,348							8,269
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									(15,228	)						10,453
					Net Increase (Decrease) in Net Assets Resulting from Operations																				30,067							59,058

Dividends and Distributions to Shareholders
From net investment income																									(44,238	)						(51,206	)
From tax return of capital																									–							(230	)
											Total Dividends and Distributions														(44,238	)						(51,436	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							(101,028			)				(129,220			)
									Total Increase (Decrease) in Net Assets														(115,199			)				(121,598			)

Net Assets
Beginning of period																							1,664,682							1,786,280
End of period (including undistributed net investment income as set forth below)																					$		1,549,483						$	1,664,682
Undistributed (overdistributed) net investment income (loss)																					$				(2,451	)			$			(4,159	)
			Class A		Class B^(a)		Class C		Class J		Class P			Institutional			R-1				R-2				R-3				R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold		$	35,344	$	10	$	8,308	$	19,937	$	3,854		$	118,536		$	508		$		3,705		$		5,617		$		5,386	$		8,197
Reinvested			7,794		15		1,022		3,495		195			29,723			59				105				414				294			618
Redeemed			(65,788	)	(3,957	)	(13,978	)	(24,557	)	(3,060	)		(224,217	)		(318	)			(1,174	)			(4,986	)			(6,083)			(6,046	)
Net Increase (Decrease)	$	(22,650		) $	(3,932	) $	(4,648	) $	(1,125	) $	989		$	(75,958	)	$	249		$		2,636		$		1,045		$		(403)		$	2,769
Shares:
Sold			3,205		1		754		1,807		348			10,702			46				337				509				487			743
Reinvested			707		1		93		316		17			2,694			5				9				37				27			56
Redeemed			(5,962	)	(358	)	(1,268	)	(2,223	)	(277	)		(20,284	)		(29	)			(106	)			(451	)			(552		)	(547	)
Net Increase (Decrease)			(2,050	)	(356	)	(421	)	(100	)	88			(6,888	)		22				240				95				(38		)	252
Year Ended October 31, 2014
Dollars:
Sold		$	23,479	$	45	$	7,502	$	14,083	$	2,634		$	35,749		$	681		$		938		$		4,095		$		3,101	$		6,326
Reinvested			9,331		93		1,313		3,718		203			34,703			63				123				445				310			553
Redeemed			(105,332	)	(2,054	)	(31,639	)	(27,446	)	(6,312	)		(87,871	)		(1,423	)			(1,373	)			(6,202	)			(3,269)			(5,787	)
Net Increase (Decrease)	$	(72,522		) $	(1,916)		$ (22,824) $		(9,645	) $	(3,475)			$ (17,419)		$	(679)			$	(312)			$	(1,662)			$	142	$		1,092
Shares:
Sold			2,139		4		684		1,281		239			3,272			62				85				373				283			575
Reinvested			851		9		120		339		19			3,162			6				11				40				28			50
Redeemed			(9,619	)	(188	)	(2,893	)	(2,504	)	(576	)		(7,995	)		(130	)			(125	)			(566	)			(298)			(528	)
Net Increase (Decrease)			(6,629	)	(175	)	(2,089	)	(884	)	(318	)		(1,561	)		(62	)			(29	)			(153	)			13			97

Distributions:
Year Ended October 31, 2015
From net investment income $			(8,165	) $	(19	) $	(1,066	) $	(3,531	) $	(225)			$ (29,723)		$	(59			) $	(122			) $	(415			) $	(294		) $	(619	)
From net realized gain on
investments			–		–		–		–		–			–			–				–				–				–			–
Total Dividends and Distributions $			(8,165	) $	(19	) $	(1,066	) $	(3,531	) $	(225)			$ (29,723)		$	(59			) $	(122			) $	(415			) $	(294		) $	(619	)
Year Ended October 31, 2014
From net investment income $			(9,719	) $	(96	) $	(1,360	) $	(3,740	) $	(236)			$ (34,566)		$	(63			) $	(125			) $	(443			) $	(308		) $	(550	)
From net realized gain on
investments			–		–		–		–		–			–			–				–				–				–			–
From tax return of capital			(42	)	–		(5	)	(17	)	(1	)		(157	)		–						(1)				(2)		(2		)	(3	)
Total Dividends and Distributions $			(9,761	) $	(96	) $	(1,365	) $	(3,757	) $	(237)			$ (34,723)		$	(63			) $	(126			) $	(445			) $	(310		) $	(553	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																High Yield Fund
																Year Ended		Year Ended
																October 31, 2015		October 31, 2014
Operations
Net investment income (loss)															$	201,798		$	225,102
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																(4,725	)		48,498
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																(230,302	)		(62,580	)
						Net Increase (Decrease) in Net Assets Resulting from Operations										(33,229	)		211,020

Dividends and Distributions to Shareholders
From net investment income																(204,785	)		(239,844	)
From net realized gain on investments																(40,031	)		(85,621	)
													Total Dividends and Distributions			(244,816	)		(325,465	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																149,831			(246,679	)
										Total Increase (Decrease) in Net Assets						(128,214	)		(361,124	)

Net Assets
Beginning of period																3,762,506			4,123,630
End of period (including undistributed net investment income as set forth below)															$	3,634,292		$	3,762,506
Undistributed (overdistributed) net investment income (loss)															$	(1,435	)	$	(4,790	)
		Class A		Class B^(a)				Class C		Class P			Institutional
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	794,562		$		109	$	43,242		$ 207,586			$ 1,395,785
Reinvested		70,817				478		22,572		43,047			87,903
Redeemed		(928,674	)			(24,509	)	(119,173	)	(709,207	)		(734,707	)
Net Increase (Decrease)	$	(63,295)				$ (23,922)		$ (53,359)		$ (458,574)			$ 748,981
Shares:
Sold		106,410				15		5,777		28,034			188,570
Reinvested		9,593				64		3,035		5,819			12,022
Redeemed		(125,461	)			(3,248	)	(15,949	)	(94,601	)		(99,496	)
Net Increase (Decrease)		(9,458	)			(3,169	)	(7,137	)	(60,748	)		101,096
Year Ended October 31, 2014
Dollars:
Sold	$	426,403		$		271	$	54,605		$ 680,265			$ 416,363
Reinvested		134,155				1,852		32,563		50,252			73,608

Redeemed		(1,287,497	)			(9,751	)	(122,090	)	(308,173	)		(389,505	)
Net Increase (Decrease)	$	(726,939)			$	(7,628)		$ (34,922)		$ 422,344		$	100,466
Shares:
Sold		54,372				34		6,897		86,607			53,715
Reinvested		17,162				236		4,133		6,430			9,514
Redeemed		(164,357	)			(1,236	)	(15,449	)	(39,394	)		(50,213	)
Net Increase (Decrease)		(92,823	)			(966	)	(4,419	)	53,643			13,016

Distributions:
Year Ended October 31, 2015
From net investment income		$ (62,808) $				(356)		$ (21,448)		$ (40,699)			$ (79,474)
From net realized gain on
investments		(13,383	)			(243	)	(5,198	)	(8,484	)		(12,723	)
Total Dividends and Distributions		$ (76,191) $				(599)		$ (26,646)		$ (49,183)			$ (92,197)
Year Ended October 31, 2014
From net investment income		$ (100,794) $				(1,487)		$ (27,559)		$ (50,609)			$ (59,395)
From net realized gain on
investments		(40,698	)			(659	)	(11,297	)	(13,638	)		(19,329	)
Total Dividends and Distributions		$ (141,492) $				(2,146)		$ (38,856)		$ (64,247)			$ (78,724)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands							High Yield Fund I
							Year Ended		Year Ended
							October 31, 2015		October 31, 2014
Operations
Net investment income (loss)						$	68,838		$	91,505
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements							(19,909	)		16,005
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies							(60,818	)		(27,129	)
			Net Increase (Decrease) in Net Assets Resulting from Operations				(11,889	)		80,381

Dividends and Distributions to Shareholders
From net investment income							(69,085	)		(91,233	)
From net realized gain on investments							(13,688	)		(29,943	)
			Total Dividends and Distributions				(82,773	)		(121,176	)

Capital Share Transactions
Net increase (decrease) in capital share transactions							(821,406	)		305,020
			Total Increase (Decrease) in Net Assets				(916,068	)		264,225

Net Assets
Beginning of period							1,792,431			1,528,206
End of period (including undistributed net investment income as set forth below)						$	876,363		$	1,792,431
Undistributed (overdistributed) net investment income (loss)						$	444		$	520
			Class A	Institutional
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$		112,883	$ 342,290
Reinvested			1,777	78,410

Redeemed			(109,862)	(1,246,904)
Net Increase (Decrease)		$	4,798	$ (826,204)
Shares:
Sold			10,953	33,655
Reinvested			175	7,788
Redeemed			(10,968)	(121,595)
Net Increase (Decrease)			160	(80,152)
Year Ended October 31, 2014
Dollars:
Sold		$	18,629	$ 374,769
Reinvested			1,970	118,060
Redeemed			(50,283)	(158,125)
Net Increase (Decrease)	$	(29,684)		$ 334,704
Shares:
Sold			1,749	35,256
Reinvested			186	11,143
Redeemed			(4,750)	(14,867)
Net Increase (Decrease)			(2,815)	31,532

Distributions:
Year Ended October 31, 2015
From net investment income$			(1,608)	$ (67,477)
From net realized gain on
investments			(174)	(13,514	)
Total Dividends and Distributions$			(1,782)	$ (80,991)
Year Ended October 31, 2014
From net investment income$			(1,327)	$ (89,906)
From net realized gain on
investments			(644)	(29,299	)
Total Dividends and Distributions$			(1,971)	$ (119,205)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				Income Fund
																		Year Ended					Year Ended
																October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																$		95,348				$	91,471
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																		18,125							6,938
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																		(102,832			)		27,302
					Net Increase (Decrease) in Net Assets Resulting from Operations													10,641					125,711

Dividends and Distributions to Shareholders
From net investment income																		(100,635			)		(97,957			)
											Total Dividends and Distributions							(100,635			)		(97,957			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																		393,642					371,600
											Total Increase (Decrease) in Net Assets							303,648					399,354

Net Assets
Beginning of period																		2,843,995					2,444,641
End of period (including undistributed net investment income as set forth below)																$		3,147,643				$	2,843,995
Undistributed (overdistributed) net investment income (loss)																$		(7,102			)	$	(11,031			)

			Class A		Class B^(a)		Class C		Class J		Class P	Institutional		R-1		R-2		R-3		R-4		R-5			R-6
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold		$	55,391	$	29	$	13,872	$	22,258	$	22,138	$ 464,692	$	7,081	$	822	$	13,091	$	9,645	$	22,562		$	7,623
Reinvested			7,728		29		1,355		2,790		548	84,029		339		59		878		741		1,385			92
Redeemed			(63,070	)	(6,253	)	(14,004	)	(23,465	)	(26,451)	(188,039)		(1,563	)	(200	)	(4,414	)	(7,715	)	(9,365		)	(996	)
Net Increase (Decrease)		$	49	$	(6,195	)$	1,223	$	1,583	$	(3,765)	$ 360,682	$	5,857	$	681	$	9,555	$	2,671	$	14,582		$	6,719
Shares:
Sold			5,722		3		1,424		2,292		2,276	47,832		729		83		1,342		990		2,314			782
Reinvested			799		3		139		288		57	8,669		35		6		90		76			143		10
Redeemed			(6,518	)	(639	)	(1,442	)	(2,423	)	(2,727)	(19,456)		(162	)	(20	)	(456	)	(798	)		(971	)	(104	)
Net Increase (Decrease)			3		(633	)	121		157		(394)	37,045		602		69		976		268		1,486			688
Year Ended October 31, 2014
Dollars:
Sold		$	54,330	$	206	$	9,756	$	22,997	$	28,518	$ 339,640	$	5,912	$	1,293		$ 10,136		$8,004			$ 39,682		N/A
Reinvested			9,350		170		1,692		2,995		458	79,892		230		46		733		650		1,145			N/A
Redeemed			(87,220	)	(3,628	)	(20,465	)	(21,760	)	(17,081)	(60,128)		(1,497	)	(295)		(7,871	)	(2,961)			(23,329)		N/A
Net Increase (Decrease)	$	(23,540		)$	(3,252	)$	(9,017	)$	4,232	$	11,895	$ 359,404	$	4,645	$	1,044	$	2,998	$	5,693	$	17,498			N/A
Shares:
Sold			5,575		21		998		2,358		2,915	34,784		606		132		1,036		821		4,090			N/A
Reinvested			961		17		173		307		47	8,189		23		5		75		66			117		N/A
Redeemed			(8,982	)	(373	)	(2,102	)	(2,241	)	(1,744)	(6,187)		(154	)	(30	)	(804	)	(303	)	(2,389		)	N/A
Net Increase (Decrease)			(2,446	)	(335	)	(931	)	424		1,218	36,786		475		107		307		584		1,818			N/A

Distributions:
Year Ended October 31, 2015
From net investment
income		$	(8,088	)$	(38	)$	(1,446	)$	(2,825	)$	(695)	$ (84,036)	$	(339	)$	(70	)$	(878	)$	(741	)$	(1,387		)$	(92	)
From net realized gain on
investments			–		–		–		–		–	–		–		–		–		–			–		–
Total Dividends and
Distributions		$	(8,088	)$	(38	)$	(1,446	)$	(2,825	)$	(695)	$ (84,036)	$	(339	)$	(70	)$	(878	)$	(741	)$	(1,387		)$	(92	)
Year Ended October 31, 2014
From net investment
income		$	(9,698	)$	(185	)$	(1,796	)$	(3,044	)$	(522)	$ (79,903)	$	(230	)$	(51	)$	(733	)$	(650	)$	(1,145		)	N/A
From net realized gain on
investments			–		–		–		–		–	–		–		–		–		–			–		N/A
Total Dividends and
Distributions		$	(9,698	)$	(185	)$	(1,796	)$	(3,044	)$	(522)	$ (79,903)	$	(230	)$	(51	)$	(733	)$	(650	)$	(1,145		)	N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																					Inflation Protection Fund
																					Year Ended						Year Ended
																					October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																					$				5,708		$	11,871
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									(6,628	)		(4,364	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									(35,813	)		8,210
				Net Increase (Decrease) in Net Assets Resulting from Operations																					(36,733	)		15,717

Dividends and Distributions to Shareholders
From net investment income																									(17,061	)		–
From net realized gain on investments																									–			(14,478	)
													Total Dividends and Distributions												(17,061	)		(14,478	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							634,119					245,063
										Total Increase (Decrease) in Net Assets													580,325					246,302

Net Assets
Beginning of period																							1,065,000					818,698
End of period (including undistributed net investment income as set forth below)																					$		1,645,325				$	1,065,000
Undistributed (overdistributed) net investment income (loss)																					$				11,980		$	16,186

		Class A		Class C		Class J				Institutional			R-1				R-2		R-3		R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	11,423	$	792	$	1,880		$	814,849			$	176		$		232	$	1,508	$	1,147		$		2,719
Reinvested		175		39		101				16,564			8				7		73		25				52
Redeemed		(12,684	)	(1,039	)	(2,821	)		(194,867		)		(367	)			(260	)	(2,326	)	(1,149	)			(2,138	)
Net Increase (Decrease)	$	(1,086	) $	(208	) $	(840)				$ 636,546		$	(183)			$	(21	) $	(745	) $	23		$		633
Shares:
Sold		1,339		97		227				95,267			22				28		181		137				324
Reinvested		21		5		12				1,962			1				1		9		3				6
Redeemed		(1,507	)	(127	)	(339	)			(22,883	)		(44	)			(32	)	(280	)	(137	)			(256	)
Net Increase (Decrease)		(147	)	(25	)	(100	)			74,346			(21	)			(3	)	(90	)	3				74
Year Ended October 31, 2014
Dollars:
Sold	$	3,608	$	651	$	1,853		$	348,938			$	401		$		311	$	1,843	$	1,183		$		10,520
Reinvested		290		78		174				13,685			17				15		112		30				48
Redeemed		(6,481	)	(1,673	)	(3,104	)		(113,628		)		(414	)			(490	)	(2,442	)	(824	)			(9,638	)
Net Increase (Decrease)	$	(2,583	) $	(944	) $	(1,077)				$ 248,995		$	4		$		(164	) $	(487	) $	389		$		930
Shares:
Sold		416		78		219				40,803			49				37		218		139				1,253
Reinvested		35		9		21				1,639			2				2		14		4				6
Redeemed		(758	)	(201	)	(370	)			(13,207	)		(51	)			(59	)	(292	)	(97	)			(1,109	)
Net Increase (Decrease)		(307	)	(114	)	(130	)			29,235			–				(20	)	(60	)	46				150

Distributions:
Year Ended October 31, 2015
From net investment income $		(186	) $	(45	) $	(101)				$ (16,564)		$	(8)			$	(7	) $	(73	) $	(25)			$	(52	)
From net realized gain on
investments		–		–		–				–			–				–		–		–				–
Total Dividends and Distributions $		(186	) $	(45	) $	(101)				$ (16,564)		$	(8)			$	(7	) $	(73	) $	(25)			$	(52	)
Year Ended October 31, 2014
From net investment income $		– $		– $		–			$	–		$	–		$		– $		– $		–		$		–
From net realized gain on
investments		(307	)	(90	)	(174	)			(13,685	)		(17	)			(15	)	(112	)	(30	)			(48	)
Total Dividends and Distributions $		(307	) $	(90	) $	(174)				$ (13,685)		$	(17)			$	(15	) $	(112	) $	(30)			$	(48	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								International Emerging Markets Fund
																								Year Ended					Year Ended
																								October 31, 2015					October 31, 2014
Operations
Net investment income (loss)																								$		16,334			$		23,618
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																										(35,751	)				14,598
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																								(162,669			)				(28,938	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																				(182,086			)				9,278

Dividends and Distributions to Shareholders
From net investment income																										(31,011	)				(14,005	)
															Total Dividends and Distributions											(31,011	)				(14,005	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																								(659,956			)		176,676
													Total Increase (Decrease) in Net Assets											(873,053			)		171,949

Net Assets
Beginning of period																								2,059,356					1,887,407
End of period (including undistributed net investment income as set forth below)																							$	1,186,303				$	2,059,356
Undistributed (overdistributed) net investment income (loss)																								$		6,805			$		24,062
		Class A		Class B^(a)				Class C					Class J		Class P		Institutional				R-1			R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	13,865	$	12		$		1,895			$		11,746	$	1,151		$ 364,971		$		649	$		1,075	$	3,185	$		3,815	$	7,657
Reinvested		983		–				25					1,604		24		27,544				25			48		140			180		400
Redeemed		(15,343	)	(3,363	)			(1,809	)				(24,716	)	(1,654)		(1,026,519)				(819	)		(2,539	)	(5,339	)		(7,542	)	(11,307	)
Net Increase (Decrease)	$	(495	) $	(3,351)			$	111		$	(11,366			) $	(479)		$ (634,004) $				(145	) $		(1,416	) $	(2,014	) $		(3,547	) $	(3,250	)
Shares:
Sold		580		1				83					508		48		15,618				28			46		135			161		333
Reinvested		42		–				1					71		1		1,186				1			2		6			8		17
Redeemed		(655	)	(148	)			(80	)				(1,093	)	(70	)	(42,594	)			(36	)		(108	)	(230	)		(329	)	(485	)
Net Increase (Decrease)		(33	)	(147	)			4					(514	)	(21	)	(25,790	)			(7	)		(60	)	(89	)		(160	)	(135	)
Year Ended October 31, 2014
Dollars:
Sold	$	15,860	$	39		$		2,550			$		10,948	$	570		$ 286,163		$		681	$		1,577	$	2,578	$		3,361	$	8,302
Reinvested		214		–				–					515		14		12,959				–			2		–			84		200
Redeemed		(22,842	)	(1,081	)			(2,441	)				(27,435	)	(1,055	)	(82,349	)			(1,632	)		(2,228	)	(7,048	)		(9,736	)	(12,094	)
Net Increase (Decrease)	$	(6,768	) $	(1,042)			$	109		$	(15,972			) $	(471	) $	216,773		$		(951	) $		(649	) $	(4,470	) $		(6,291	) $	(3,592	)
Shares:
Sold		634		2				108					459		23		11,765				29			65		106			137		339
Reinvested		9		–				–					22		1		534				–			–		–			3		8
Redeemed		(927	)	(47	)			(103	)				(1,164	)	(43	)	(3,347	)			(67	)		(93	)	(287	)		(399	)	(498	)
Net Increase (Decrease)		(284	)	(45	)			5					(683	)	(19	)	8,952				(38	)		(28	)	(181	)		(259	)	(151	)

Distributions:
Year Ended October 31, 2015
From net investment income		$(1,001	) $	–		$		(26)				$	(1,605	) $	(26	) $	(27,560)			$	(25	) $		(48	) $	(140	) $		(180	) $	(400	)
From net realized gain on
investments		–		–				–					–		–		–				–			–		–			–		–
Total Dividends and Distributions		$(1,001	) $	–		$		(26)				$	(1,605	) $	(26	) $	(27,560)			$	(25	) $		(48	) $	(140	) $		(180	) $	(400	)
Year Ended October 31, 2014
From net investment income		$(217	) $	–		$		–			$		(516	) $	(18	) $	(12,968)			$	– $			(2	) $	– $			(84	) $	(200	)
From net realized gain on
investments		–		–				–					–		–		–				–			–		–			–		–
Total Dividends and Distributions		$(217	) $	–		$		–			$		(516	) $	(18	) $	(12,968)			$	– $			(2	) $	– $			(84	) $	(200	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																							International Fund I
																					Year Ended				Year Ended
																					October 31, 2015				October 31, 2014
Operations
Net investment income (loss)																					$		4,025		$	7,995
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																							(21,253	)		114,931
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																							20,621			(94,457	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																	3,393			28,469

Dividends and Distributions to Shareholders
From net investment income																							(7,847	)		(9,947	)
															Total Dividends and Distributions								(7,847	)		(9,947	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							12,759			(288,580	)
													Total Increase (Decrease) in Net Assets										8,305			(270,058	)

Net Assets
Beginning of period																							372,546			642,604
End of period (including undistributed net investment income as set forth below)																					$		380,851		$	372,546
Undistributed (overdistributed) net investment income (loss)																					$		2,799		$	7,271
		Class A				Class P					Institutional		R-1		R-2		R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	5,708		$		35,660			$		31,361	$	803	$	1,111	$	1,351	$	1,236	$	3,571
Reinvested		19				5					7,340		58		40		78		117		189
Redeemed		(953	)			(423	)				(63,388	)	(1,383	)	(963	)	(2,006	)	(3,412	)	(3,360	)
Net Increase (Decrease)	$	4,774		$		35,242			$		(24,687	) $	(522	) $	188	$	(577	) $	(2,059	) $	400
Shares:
Sold		404				2,593					2,227		58		79		97		91		264
Reinvested		1				1					552		4		3		6		9		14
Redeemed		(68	)			(33	)				(4,631	)	(102	)	(71	)	(146	)	(249	)	(242	)
Net Increase (Decrease)		337				2,561					(1,852	)	(40	)	11		(43	)	(149	)	36
Year Ended October 31, 2014^(a)
Dollars:
Sold	$	758		$		10			$		28,563	$	555	$	660	$	863	$	942	$	1,626
Reinvested		–				–					9,590		36		31		71		96		123
Redeemed		(1	)			–					(321,595	)	(1,281	)	(1,901	)	(2,390	)	(3,758	)	(1,578	)
Net Increase (Decrease)	$	757		$		10		$	(283,442			) $	(690	) $	(1,210	) $	(1,456	) $	(2,720	) $	171
Shares:
Sold		57				1					2,136		42		50		65		71		122
Reinvested		–				–					728		3		2		5		7		9
Redeemed		–				–					(24,432	)	(97	)	(143	)	(178	)	(287	)	(119	)
Net Increase (Decrease)		57				1					(21,568	)	(52	)	(91	)	(108	)	(209	)	12

Distributions:
Year Ended October 31, 2015
From net investment income $		(19)			$	(5)				$	(7,341	) $	(58	) $	(40	) $	(78	) $	(117	) $	(189	)
From net realized gain on
investments		–				–					–		–		–		–		–		–
Total Dividends and Distributions $		(19)			$	(5)				$	(7,341	) $	(58	) $	(40	) $	(78	) $	(117	) $	(189	)
Year Ended October 31, 2014^(a)
From net investment income $		–		$		–			$		(9,590	) $	(36	) $	(31	) $	(71	) $	(96	) $	(123	)
From net realized gain on
investments		–				–					–		–		–		–		–		–
Total Dividends and Distributions $		–		$		–			$		(9,590	) $	(36	) $	(31	) $	(71	) $	(96	) $	(123	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																									LargeCap Growth Fund
																							Year Ended						Year Ended
																							October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																							$				5,555		$			5,304
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									341,289					355,410
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									(139,895			)				90,615
					Net Increase (Decrease) in Net Assets Resulting from Operations																				206,949					451,329

Dividends and Distributions to Shareholders
From net investment income																											(4,548	)				(8,242	)
From net realized gain on investments																									(354,865			)		(321,764			)
															Total Dividends and Distributions										(359,413			)		(330,006			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																									(287,199			)		184,837
											Total Increase (Decrease) in Net Assets														(439,663			)		306,160

Net Assets
Beginning of period																									3,382,161					3,076,001
End of period (including undistributed net investment income as set forth below)																							$		2,942,498				$	3,382,161
Undistributed (overdistributed) net investment income (loss)																							$				3,670		$			2,999

		Class A			Class B^(a)		Class C				Class J				Class P			Institutional			R-1		R-2				R-3		R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	23,057		$	21	$	5,251		$		18,150		$		4,590		$	360,232		$	830	$	1,353		$		4,547	$	5,902	$		6,042
Reinvested		38,756			648		1,554				7,185				1,030			296,834			668		612				2,056		1,398			7,299
Redeemed		(38,464	)		(6,032	)	(2,909	)			(16,994	)			(4,461	)		(971,587	)		(1,615	)	(2,070	)			(7,268	)	(5,772)			(18,042	)
Net Increase (Decrease)	$	23,349		$	(5,363	) $	3,896		$		8,341		$		1,159		$	(314,521	)	$	(117)	$	(105)			$	(665	) $	1,528	$		(4,701	)
Shares:
Sold		2,118			2		527				1,757				401			31,102			81		127				397		523			534
Reinvested		3,774			71		163				739				97			27,862			67		61				189		129			681
Redeemed		(3,544	)		(618	)	(289	)			(1,656	)			(407	)		(86,296	)		(154	)	(200	)			(637	)	(508)			(1,581	)
Net Increase (Decrease)		2,348			(545	)	401				840				91			(27,332	)		(6	)	(12	)			(51	)	144			(366	)
Year Ended October 31, 2014
Dollars:
Sold	$	19,885		$	180	$	2,879		$		14,359		$		1,793		$	170,325		$	1,108	$	1,402		$		2,441	$	4,289	$		7,047
Reinvested		36,950			767		1,404				6,348				966			269,390			734		793				2,238		1,869			6,975
Redeemed		(45,822	)		(2,193	)	(2,948	)			(14,578	)			(2,740	)		(264,556	)		(2,238	)	(3,814	)			(6,981	)	(11,000)			(12,435	)
Net Increase (Decrease)	$	11,013		$	(1,246	) $	1,335		$		6,129		$		19		$	175,159		$	(396	) $	(1,619)			$	(2,302	) $	(4,842)		$	1,587
Shares:
Sold		1,836			18		283				1,385				160			15,158			104		129				212		380			633
Reinvested		3,560			81		144				642				90			25,130			73		78				204		172			648
Redeemed		(4,212	)		(221	)	(287	)			(1,408	)			(242	)		(23,564	)		(213	)	(357	)			(610	)	(985		)	(1,102	)
Net Increase (Decrease)		1,184			(122	)	140				619				8			16,724			(36	)	(150	)			(194	)	(433		)	179

Distributions:
Year Ended October 31, 2015
From net investment income		$–		$	– $		–		$		–		$		–		$	(4,548	)	$	– $		–		$		– $		–	$		–
From net realized gain on
investments		(39,229	)		(651	)	(1,811	)			(7,185	)			(1,156	)		(292,794	)		(668	)	(618	)			(2,056	)	(1,398		)	(7,299	)
Total Dividends and Distributions		$ (39,229) $			(651	) $	(1,811)			$	(7,185)			$	(1,156)			$ (297,342)		$	(668	) $	(618)			$	(2,056	) $	(1,398		) $	(7,299	)
Year Ended October 31, 2014
From net investment income		$–		$	– $		–		$		–		$		(16)			$(8,226	)	$	– $		–		$		– $		–	$		–
From net realized gain on
investments		(37,387	)		(773	)	(1,627	)			(6,349	)			(1,092	)		(261,921	)		(734	)	(799	)			(2,238	)	(1,869		)	(6,975	)
Total Dividends and Distributions		$ (37,387)			$(773	) $	(1,627)			$	(6,349)			$	(1,108)			$ (270,147)		$	(734	) $	(799)			$	(2,238	) $	(1,869		) $	(6,975	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												LargeCap Growth Fund I
																												Year Ended						Year Ended
																												October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																												$				11,369		$		12,143
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																														980,836						712,441
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														(275,426			)			188,292
						Net Increase (Decrease) in Net Assets Resulting from Operations																								716,779						912,876

Dividends and Distributions to Shareholders
From net investment income																																(20,583	)			(10,198	)
From net realized gain on investments																														(705,653			)			(419,282	)
																	Total Dividends and Distributions													(726,236			)			(429,480	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																														(409,112			)			414,714
													Total Increase (Decrease) in Net Assets																	(418,569			)			898,110

Net Assets
Beginning of period																														7,758,857						6,860,747
End of period (including undistributed net investment income as set forth below)																												$		7,340,288				$		7,758,857
Undistributed (overdistributed) net investment income (loss)																												$				1,122		$		8,064
		Class A				Class J				Class P			Institutional				R-1		R-2				R-3					R-4				R-5		R-6
Capital Share Transactions:
Year Ended October 31, 2015 ^(b)
Dollars:
Sold	$	11,162		$		27,589		$		1,241		$	1,095,097			$	1,242	$	3,740		$		15,680			$		21,871		$		29,817	$	1,340
Reinvested		630				11,161				2			654,987				851		2,150				15,708					9,386				31,288		1

Redeemed		(3,769	)			(20,641	)			(8)			(2,169,862	)			(2,291	)	(10,252	)			(42,852	)				(26,054	)			(68,268	)	(58	)
Net Increase (Decrease)	$	8,023		$		18,109		$		1,235		$	(419,778	)	$		(198	)	$(4,362)				$ (11,464)					$5,203		$		(7,163	) $	1,283
Shares:
Sold		855				2,411				96			83,898				104		320				1,270					1,742				2,333		107
Reinvested		52				1,056				–			53,730				76		198				1,369					812				2,638		–
Redeemed		(290	)			(1,820	)			(1	)		(164,983	)			(192	)	(881	)			(3,495	)				(2,122	)			(5,433	)	(4	)
Net Increase (Decrease)		617				1,647				95			(27,355	)			(12	)	(363	)			(856	)				432				(462	)	103
Year Ended October 31, 2014 ^(a)
Dollars:
Sold	$	5,582		$		19,593		$		17		$	750,471		$		1,539	$	10,189		$		21,800			$		18,656		$		82,776		N/A
Reinvested		157				6,610				–			388,891				525		1,349				9,776					6,356				15,808		N/A
Redeemed		(1,348	)			(20,808	)			–			(790,030	)			(2,638	)	(7,556	)			(27,876	)				(35,859	)			(39,266	)	N/A
Net Increase (Decrease)	$	4,391		$		5,395		$		17		$	349,332		$		(574	) $	3,982		$		3,700		$	(10,847)					$	59,318		N/A
Shares:
Sold		437				1,730				1			58,456				130		870				1,790					1,519				6,589		N/A
Reinvested		13				603				–			31,307				46		120				828					535				1,302		N/A
Redeemed		(106	)			(1,838	)			–			(61,708	)			(221	)	(653	)			(2,271	)				(2,923	)			(3,116	)	N/A
Net Increase (Decrease)		344				495				1			28,055				(45	)	337				347					(869	)			4,775		N/A

Distributions:
Year Ended October 31, 2015 ^(b)
From net investment income $		– $				– $				– $			(20,315	)	$		– $		–		$		–			$		–		$		(268	) $	–
From net realized gain on
investments		(652	)			(11,162	)			(2	)		(634,676	)			(851	)	(2,195	)			(15,708	)				(9,386	)			(31,020	)	(1	)
Total Dividends and Distributions $		(652)				$ (11,162)				$ (2) $			(654,991	)	$		(851	) $	(2,195)				$ (15,708)					$(9,386)				$ (31,288) $		(1	)
Year Ended October 31, 2014 ^(a)
From net investment income $		–		$		–		$		– $			(10,198	)	$		– $		–		$		–			$		–		$		–		N/A
From net realized gain on
investments		(159	)			(6,612	)			–			(378,697	)			(525	)	(1,349	)			(9,776	)				(6,356	)			(15,808	)	N/A
Total Dividends and Distributions $		(159)			$	(6,612)			$	–		$	(388,895	)	$		(525	) $	(1,349)			$	(9,776)				$	(6,356)				$ (15,808)		N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																									LargeCap S&P 500 Index Fund
																									Year Ended						Year Ended
																									October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																									$				79,574		$	66,241
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																											133,514					102,223
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																													(14,518	)		451,178
						Net Increase (Decrease) in Net Assets Resulting from Operations																					198,570					619,642

Dividends and Distributions to Shareholders
From net investment income																													(68,885	)		(58,505	)
From net realized gain on investments																													(2,702	)		–
																	Total Dividends and Distributions												(71,587	)		(58,505	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																											546,355					(23,330	)
													Total Increase (Decrease) in Net Assets														673,338					537,807

Net Assets
Beginning of period																											4,249,024					3,711,217
End of period (including undistributed net investment income as set forth below)																									$		4,922,362				$	4,249,024
Undistributed (overdistributed) net investment income (loss)																									$				62,433		$	52,094

		Class A				Class C				Class J			Institutional				R-1				R-2		R-3		R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	63,932		$		14,630		$		68,403		$	1,169,162			$	5,603		$		6,579	$	50,069	$	60,520		$		65,697
Reinvested		3,907				253				8,101			45,292				204				425		2,985		3,424				6,889
Redeemed		(52,171	)			(8,424	)			(83,082	)		(588,085	)			(4,197	)			(15,153	)	(91,167	)	(65,456	)			(121,985	)
Net Increase (Decrease)	$	15,668		$		6,459		$		(6,578)			$ 626,369		$		1,610		$		(8,149)		$ (38,113)		$(1,512)				$ (49,399)
Shares:
Sold		4,399				1,020				4,765			79,636				389				450		3,442		4,152				4,492
Reinvested		269				18				563			3,123				14				29		205		235				469
Redeemed		(3,587	)			(601	)			(5,771	)		(40,684	)			(289	)			(1,043	)	(6,291	)	(4,520	)			(8,292	)
Net Increase (Decrease)		1,081				437				(443	)		42,075				114				(564	)	(2,644	)	(133	)			(3,331	)
Year Ended October 31, 2014
Dollars:
Sold	$	35,762		$		8,653		$		67,423		$	312,186		$		3,620		$		5,777	$	49,241	$	44,525		$		89,806
Reinvested		2,829				165				6,021			38,393				145				420		2,629		2,536				5,308
Redeemed		(35,865	)			(3,661	)			(66,708	)		(387,960	)			(6,272	)			(17,407	)	(56,388	)	(39,107	)			(85,401	)
Net Increase (Decrease)	$	2,726		$		5,157		$		6,736		$	(37,381	)	$		(2,507)				$ (11,210) $		(4,518	) $	7,954		$		9,713
Shares:
Sold		2,690				661				5,087			23,463				273				434		3,686		3,314				6,675
Reinvested		222				13				476			3,013				11				33		206		198				411
Redeemed		(2,705	)			(280	)			(5,055	)		(29,127	)			(473	)			(1,322	)	(4,163	)	(2,916	)			(6,381	)
Net Increase (Decrease)		207				394				508			(2,651	)			(189	)			(855	)	(271	)	596				705

Distributions:
Year Ended October 31, 2015
From net investment income $		(3,815)			$	(259)			$	(7,772)			$ (43,718)		$		(191)			$	(400	) $	(2,835	) $	(3,279)			$	(6,616	)
From net realized gain on
investments		(165	)			(19	)			(338	)		(1,574	)			(13	)			(25	)	(150	)	(145	)			(273	)
Total Dividends and Distributions $		(3,980)			$	(278)			$	(8,110)			$ (45,292)		$		(204)			$	(425	) $	(2,985	) $	(3,424)			$	(6,889	)
Year Ended October 31, 2014
From net investment income $		(2,878)			$	(173)			$	(6,023)			$ (38,393)		$		(145)			$	(420	) $	(2,629	) $	(2,536)			$	(5,308	)
From net realized gain on
investments		–				–				–			–				–				–		–		–				–
Total Dividends and Distributions $		(2,878)			$	(173)			$	(6,023)			$ (38,393)		$		(145)			$	(420	) $	(2,629	) $	(2,536)			$	(5,308	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												LargeCap Value Fund
																										Year Ended									Year Ended
																										October 31, 2015									October 31, 2014
Operations
Net investment income (loss)																										$				54,424					$		54,968
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												268,414							347,452
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																												(207,988			)						31,711
						Net Increase (Decrease) in Net Assets Resulting from Operations																						114,850							434,131

Dividends and Distributions to Shareholders
From net investment income																														(57,750	)						(43,181	)
From net realized gain on investments																												(349,771			)				(284,484			)
																Total Dividends and Distributions												(407,521			)				(327,665			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												(974,058			)				343,452
												Total Increase (Decrease) in Net Assets														(1,266,729					)				449,918

Net Assets
Beginning of period																												3,749,365							3,299,447
End of period (including undistributed net investment income as set forth below)																										$		2,482,636						$	3,749,365
Undistributed (overdistributed) net investment income (loss)																										$				39,643					$		43,254

		Class A				Class B^(a)		Class C				Class J				Class P			Institutional			R-1				R-2				R-3					R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	9,802		$		16	$	1,396		$		6,826		$		227		$	299,948		$	338		$		879		$		1,137		$			756	$	1,319
Reinvested		22,528				140		797				8,344				29			372,853			154				333				522					277		909

Redeemed		(24,631	)			(1,528	)	(2,311	)			(15,227	)			(165)			(1,650,721	)		(390	)			(2,927	)			(1,953	)				(1,281	)	(2,454	)
Net Increase (Decrease)	$	7,699		$		(1,372	) $	(118)			$	(57)			$	91		$	(977,920	)	$	102		$		(1,715)			$	(294)			$		(248	) $	(226	)
Shares:
Sold		764				1		112				542				17			22,562			26				70				88					61		103
Reinvested		1,782				11		65				672				3			29,481			12				27				42					22		72
Redeemed		(1,915	)			(118	)	(185	)			(1,208	)			(13	)		(127,294	)		(31	)			(235	)			(155	)				(103	)	(192	)
Net Increase (Decrease)		631				(106	)	(8	)			6				7			(75,251	)		7				(138	)			(25	)				(20	)	(17	)
Year Ended October 31, 2014^(b)
Dollars:
Sold	$	11,300		$		9	$	1,492		$		10,629		$		606		$	223,109		$	443		$		850		$		1,234		$			899	$	1,836
Reinvested		18,636				143		653				6,611				–			299,062			141				258				359					256		921
Redeemed		(26,473	)			(642	)	(1,409	)			(12,664	)			(409	)		(186,818	)		(724	)			(561	)			(915	)				(1,362	)	(4,018	)
Net Increase (Decrease)	$	3,463		$		(490	) $	736		$		4,576		$		197		$	335,353		$	(140)			$	547		$		678		$			(207	) $	(1,261	)
Shares:
Sold		847				1		114				811				45			16,738			34				64				92					68		137
Reinvested		1,457				11		52				525				–			23,401			11				20				28					20		72
Redeemed		(1,983	)			(48	)	(108	)			(964	)			(30	)		(14,111	)		(55	)			(42	)			(69	)				(103	)	(311	)
Net Increase (Decrease)		321				(36	)	58				372				15			26,028			(10	)			42				51					(15	)	(102	)

Distributions:
Year Ended October 31, 2015
From net investment income		$(2,533)			$	– $		(33)			$	(954)			$	(4) $			(53,978	)	$	(11)			$	(39			) $	(55			) $		(31	) $	(112	)
From net realized gain on
investments		(20,481	)			(144	)	(792	)			(7,392	)			(25	)		(318,875	)		(143	)			(409)				(467)					(246	)	(797	)
Total Dividends and Distributions		$ (23,014) $				(144	) $	(825)			$	(8,346)			$	(29) $			(372,853	)	$	(154)			$	(448			) $	(522			) $		(277	) $	(909	)
Year Ended October 31, 2014^(b)
From net investment income		$(1,842)			$	– $		(39)			$	(638)			$	– $			(40,471	)	$	(9)			$	(27			) $	(32			) $		(26	) $	(97	)
From net realized gain on
investments		(17,308	)			(147	)	(648	)			(5,974	)			–			(258,591	)		(132	)			(303)				(327)					(230	)	(824	)
Total Dividends and Distributions		$ (19,150) $				(147	) $	(687)			$	(6,612)			$	– $			(299,062	)	$	(141)			$	(330			) $	(359			) $		(256	) $	(921	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																					MidCap Fund
																			Year Ended					Year Ended
																			October 31, 2015					October 31, 2014
Operations
Net investment income (loss)																			$		11,192			$		21,511
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																			699,848					466,325
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																			(139,834			)		538,045
				Net Increase (Decrease) in Net Assets Resulting from Operations															571,206					1,025,881

Dividends and Distributions to Shareholders
From net investment income																					(22,322	)				(10,518	)
From net realized gain on investments																			(448,289			)		(159,328			)
										Total Dividends and Distributions									(470,611			)		(169,846			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																			2,186,740					698,018
								Total Increase (Decrease) in Net Assets											2,287,335					1,554,053

Net Assets
Beginning of period																			8,865,226					7,311,173
End of period (including undistributed net investment income as set forth below)																		$	11,152,561				$	8,865,226
Undistributed (overdistributed) net investment income (loss)																			$		9,383			$		21,684
		Class A		Class B^(a)		Class C		Class J		Class P		Institutional		R-1					R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	405,982	$	37	$	23,655	$	4,450		$1,040,954		$ 2,446,404 $		30,644		$			9,227	$	39,289	$		67,468		$ 138,143
Reinvested		83,960		660		14,443		14,862		78,478		157,613		1,793					1,739		7,866			8,154		13,558
Redeemed		(381,011	)	(14,582	)	(46,427	)	(34,547	)	(506,905)		(1,152,717)		(6,146	)				(17,469	)	(55,805	)		(90,974	)	(96,056	)
Net Increase (Decrease)	$	108,931		$ (13,885)		$(8,329)		$ (15,235)		$ 612,527		$ 1,451,300 $		26,291		$			(6,503	) $	(8,650)			$ (15,352) $		55,645
Shares:
Sold		18,059		2		1,130		205		45,954		107,085		1,426					428		1,775			2,964		6,176
Reinvested		3,987		33		730		730		3,668		7,346		89					86		379			382		639
Redeemed		(17,061	)	(672	)	(2,210	)	(1,600	)	(22,353	)	(50,492	)	(288	)				(825	)	(2,535	)		(4,063	)	(4,296	)
Net Increase (Decrease)		4,985		(637	)	(350	)	(665	)	27,269		63,939		1,227					(311	)	(381	)		(717	)	2,519
Year Ended October 31, 2014
Dollars:
Sold	$	330,287	$	228	$	19,402	$	3,024		$ 948,638		$ 1,244,296 $		14,086		$			10,914	$	35,467	$		48,061	$	90,725
Reinvested		39,608		337		6,130		6,288		25,793		51,356		469					667		3,362			3,588		4,569
Redeemed		(700,282	)	(4,491	)	(52,154	)	(35,301	)	(565,546	)	(645,816	)	(5,418	)				(15,737	)	(51,222	)		(62,749	)	(50,561	)
Net Increase (Decrease)	$	(330,387	) $	(3,926)		$ (26,622)		$ (25,989)		$ 408,885 $		649,836	$	9,137		$			(4,156)		$ (12,393)			$ (11,100) $		44,733
Shares:
Sold		16,116		12		1,003		152		45,109		59,682		711					549		1,745			2,309		4,392
Reinvested		2,003		18		326		329		1,288		2,556		25					35		172			179		230
Redeemed		(33,620	)	(229	)	(2,664	)	(1,775	)	(26,642	)	(30,825	)	(275	)				(783	)	(2,522	)		(3,015	)	(2,434	)
Net Increase (Decrease)		(15,501	)	(199	)	(1,335	)	(1,294	)	19,755		31,413		461					(199	)	(605	)		(527	)	2,188

Distributions:
Year Ended October 31, 2015
From net investment income		$ (18) $		– $		– $		(387	) $	(6,017	) $	(15,264	) $	–		$			– $		– $			(101	) $	(535	)
From net realized gain on
investments		(90,324	)	(672	)	(18,134	)	(14,483	)	(88,014	)	(203,895	)	(1,794	)				(2,027	)	(7,866	)		(8,053	)	(13,027	)
Total Dividends and Distributions		$ (90,342) $		(672)		$ (18,134)		$ (14,870)		$ (94,031)		$ (219,159) $		(1,794)			$		(2,027	) $	(7,866	) $		(8,154)		$ (13,562)
Year Ended October 31, 2014
From net investment income		$ – $		– $		– $		– $		(2,790	) $	(7,502	) $	–		$			– $		– $			– $		(226	)
From net realized gain on
investments		(42,407	)	(342	)	(7,771	)	(6,290	)	(27,586	)	(62,266	)	(470	)				(900	)	(3,362	)		(3,588	)	(4,346	)
Total Dividends and Distributions		$ (42,407) $		(342	) $	(7,771	) $	(6,290)		$ (30,376) $		(69,768	) $	(470)			$		(900	) $	(3,362	) $		(3,588	) $	(4,572	)
^(a)Class B shares discontinued operations and converted to Class A shares on February 23, 2015.


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																							MidCap Value Fund III
																							Year Ended				Year Ended
																							October 31, 2015				October 31, 2014
Operations
Net investment income (loss)																							$		12,478		$		10,766
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									42,793				68,884
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									(44,866	)			26,008
						Net Increase (Decrease) in Net Assets Resulting from Operations																			10,405				105,658

Dividends and Distributions to Shareholders
From net investment income																									(11,507	)			(8,655	)
From net realized gain on investments																									(69,078	)			(22,025	)
																Total Dividends and Distributions									(80,585	)			(30,680	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							142,377						140,054
												Total Increase (Decrease) in Net Assets													72,197				215,032

Net Assets
Beginning of period																							980,294						765,262
End of period (including undistributed net investment income as set forth below)																						$	1,052,491				$		980,294
Undistributed (overdistributed) net investment income (loss)																							$		8,971		$		8,138
		Class A				Class J		Class P				Institutional				R-1		R-2		R-3			R-4		R-5		R-6
Capital Share Transactions:
Year Ended October 31, 2015 ^(b)
Dollars:
Sold	$	13,636		$		6,321	$	131		$		228,844		$		706	$	1,147	$	9,217	$		9,439	$	17,907	$	4,658
Reinvested		300				9,585		3				65,902				92		154		825			1,258		2,375		1
Redeemed		(3,438	)			(15,454	)	(13	)			(193,042	)			(243	)	(604	)	(3,169	)		(5,298	)	(8,260	)	(603	)
Net Increase (Decrease)	$	10,498		$		452	$	121		$		101,704		$		555	$	697	$	6,873	$		5,399	$	12,022	$	4,056
Shares:
Sold		696				338		7				11,430				37		61		492			504		930		232
Reinvested		16				530		–				3,434				5		8		46			69		131		–
Redeemed		(174	)			(831	)	(1	)			(9,523	)			(13	)	(32	)	(170	)		(286	)	(442	)	(31	)
Net Increase (Decrease)		538				37		6				5,341				29		37		368			287		619		201
Year Ended October 31, 2014^(a)
Dollars:
Sold	$	2,194		$		10,123	$	41		$		161,900		$		726	$	1,031	$	5,766	$		9,879	$	9,048		N/A
Reinvested		–				3,967		–				25,826				16		51		170			166		466		N/A
Redeemed		(218	)			(14,917	)	–				(69,018	)			(206	)	(686	)	(1,724	)		(608	)	(3,939	)	N/A
Net Increase (Decrease)	$	1,976		$		(827	) $	41		$		118,708		$		536	$	396	$	4,212	$		9,437	$	5,575		N/A
Shares:
Sold		108				540		2				8,145				38		54		302			523		478		N/A
Reinvested		–				222		–				1,370				1		3		10			9		26		N/A
Redeemed		(11	)			(798	)	–				(3,522	)			(11	)	(38	)	(92	)		(32	)	(209	)	N/A
Net Increase (Decrease)		97				(36	)	2				5,993				28		19		220			500		295		N/A

Distributions:
Year Ended October 31, 2015 ^(b)
From net investment income		$(41)			$	(1,072	) $	–		$		(9,808)			$	(8	) $	(13	) $	(91	) $		(155	) $	(319	) $	–
From net realized gain on
investments		(264	)			(8,513	)	(3	)			(56,179	)			(84	)	(141	)	(734	)		(1,103	)	(2,056	)	(1	)
Total Dividends and Distributions		$(305)			$	(9,585	) $	(3)			$	(65,987)			$	(92	) $	(154	) $	(825	) $		(1,258	) $	(2,375	) $	(1	)
Year Ended October 31, 2014^(a)
From net investment income		$–		$		(879	) $	–		$		(7,581)			$	(2	) $	(9	) $	(35	) $		(40	) $	(109	)	N/A
From net realized gain on
investments		–				(3,089	)	–				(18,262	)			(14	)	(42	)	(135	)		(126	)	(357	)	N/A
Total Dividends and Distributions		$–		$		(3,968	) $	–		$		(25,843)			$	(16	) $	(51	) $	(170	) $		(166	) $	(466	)	N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				Money Market Fund
																				Year Ended			Year Ended
																				October 31, 2015			October 31, 2014
Operations
Net investment income (loss)																			$	–			$	2
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																				21				219
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																				–				–
							Net Increase (Decrease) in Net Assets Resulting from Operations													21				221


Capital Share Transactions
Net increase (decrease) in capital share transactions																				(79,529	)			(57,081	)
													Total Increase (Decrease) in Net Assets							(79,508	)			(56,860	)

Net Assets
Beginning of period																				1,079,723			1,136,583
End of period (including undistributed net investment income as set forth below)																			$	1,000,215		$	1,079,723
Undistributed (overdistributed) net investment income (loss)																			$	–			$	–

			Class A		Class B^(a)				Class C			Class J				Institutional
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	606,436			$		308	$	20,175		$	153,936			$	279,433
Redeemed			(611,590)				(3,650	)	(18,257	)		(149,621		)		(356,699		)
Net Increase (Decrease)		$	(5,154)			$	(3,342	) $	1,918			$	4,315		$	(77,266		)
Shares:
Sold			606,435				308		20,175			153,936				279,433
Redeemed			(611,590)				(3,649	)	(18,257	)		(149,621		)		(356,699		)
Net Increase (Decrease)			(5,155	)			(3,341	)	1,918				4,315			(77,266		)
Year Ended October 31, 2014
Dollars:
Sold	$	474,113			$		500	$	15,971		$	117,768			$	242,449
Redeemed			(475,605)				(3,544	)	(19,230	)		(146,440		)		(263,063		)
Net Increase (Decrease)		$	(1,492)			$	(3,044	) $	(3,259)			$ (28,672)					$ (20,614)
Shares:
Sold			474,115				499		15,971			117,768				242,450
Redeemed			(475,606)				(3,544	)	(19,230	)		(146,440		)		(263,063		)
Net Increase (Decrease)			(1,491	)			(3,045	)	(3,259	)		(28,672		)		(20,613		)

Distributions:
Year Ended October 31, 2015
From net investment income			$–		$		– $		–			$	–				$–
From net realized gain on
investments			–				–		–				–				–
Total Dividends and Distributions			$– $				– $		–			$	–				$–
Year Ended October 31, 2014
From net investment income			$–		$		– $		–			$	–				$–
From net realized gain on
investments			–				–		–				–				–
Total Dividends and Distributions			$– $				– $		–			$	–				$–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																										Principal Capital Appreciation Fund
																										Year Ended								Year Ended
																										October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																										$				34,250				$		26,222
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												139,501								109,057
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														(42,417	)					205,161
						Net Increase (Decrease) in Net Assets Resulting from Operations																						131,334								340,440

Dividends and Distributions to Shareholders
From net investment income																														(27,638	)					(22,458	)
From net realized gain on investments																														(93,612	)					(48,623	)
															Total Dividends and Distributions													(121,250			)					(71,081	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												135,200								(26,562	)
												Total Increase (Decrease) in Net Assets																145,284								242,797

Net Assets
Beginning of period																												2,492,225								2,249,428
End of period (including undistributed net investment income as set forth below)																										$		2,637,509						$		2,492,225
Undistributed (overdistributed) net investment income (loss)																										$				28,230				$		21,687
		Class A				Class B^(a)		Class C				Class P			Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	76,728			$	64	$	10,822		$		10,731		$	245,276		$	657		$		673		$		5,010		$		4,452		$		7,660
Issued in acquisitions		113,691				–		–				–			346,764			2,734				2,412				13,768				11,753				17,498
Reinvested		37,350				881		2,060				1,347			74,586			71				94				1,115				731				1,727
Redeemed		(110,173	)			(21,520	)	(7,178	)			(9,891	)		(676,905	)		(793	)			(1,505	)			(9,145	)			(8,932	)			(9,413	)
Net Increase (Decrease)	$	117,596		$	(20,575		) $	5,704		$		2,187		$	(10,279	)	$	2,669		$		1,674		$		10,748		$		8,004		$		17,472
Shares:
Sold		1,308				1		223				186			4,049			11				12				85				75				133
Issued in acquisitions		1,896				–		–				–			5,702			46				40				230				195				289
Reinvested		657				19		44				23			1,291			1				2				20				13				30
Redeemed		(1,893	)			(436	)	(149	)			(170	)		(11,369	)		(14	)			(26	)			(156	)			(155	)			(159	)
Net Increase (Decrease)		1,968				(416	)	118				39			(327	)		44				28				179				128				293
Year Ended October 31, 2014
Dollars:
Sold	$	66,454			$	157	$	9,269		$		12,447		$	54,748		$	713		$		518		$		4,734		$		1,945		$		9,360
Reinvested		21,096				777		1,009				626			44,739			37				60				572				479				961
Redeemed		(98,668	)			(15,081	)	(7,134	)			(6,207	)		(113,200	)		(725	)			(901	)			(3,013	)			(5,411	)			(6,923	)
Net Increase (Decrease)	$	(11,118)				$ (14,147) $		3,144		$		6,866		$	(13,713	)	$	25		$		(323)			$	2,293		$		(2,987)			$	3,398
Shares:
Sold		1,208				3		203				219			986			13				9				84				35				172
Reinvested		399				18		23				12			834			1				1				11				9				18
Redeemed		(1,789	)			(327	)	(157	)			(110	)		(2,028	)		(13	)			(16	)			(55	)			(100	)			(124	)
Net Increase (Decrease)		(182	)			(306	)	69				121			(208	)		1				(6	)			40				(56	)			66

Distributions:
Year Ended October 31, 2015
From net investment income		$ (7,551) $				(7	) $	(181)			$	(358)			$ (18,820)		$	(7			) $	(11			) $	(188			) $	(149			) $	(366	)
From net realized gain on
investments		(30,745	)			(898	)	(1,972	)			(1,167	)		(55,813	)		(64)				(83)				(927)				(582)				(1,361	)
Total Dividends and Distributions		$ (38,296) $				(905	) $	(2,153)			$	(1,525)			$ (74,633)		$	(71			) $	(94			) $	(1,115			) $	(731			) $	(1,727	)
Year Ended October 31, 2014
From net investment income		$ (5,774) $				– $		(133)			$	(227)			$ (15,740)		$	(3			) $	(10			) $	(137			) $	(134			) $	(300	)
From net realized gain on
investments		(15,865	)			(795	)	(933	)			(477	)		(29,028	)		(34)				(50)				(435)				(345)				(661	)
Total Dividends and Distributions		$ (21,639) $				(795	) $	(1,066)			$	(704)			$ (44,768)		$	(37			) $	(60			) $	(572			) $	(479			) $	(961	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												Real Estate Securities Fund
																												Year Ended								Year Ended
																												October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																												$				31,884				$				18,678
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																														133,162										23,520
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																																(35,358	)					289,137
							Net Increase (Decrease) in Net Assets Resulting from Operations																							129,688								331,335

Dividends and Distributions to Shareholders
From net investment income																																(30,710	)							(27,287	)
From net realized gain on investments																																(20,461	)					(184,920			)
																		Total Dividends and Distributions														(51,171	)					(212,207			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																														257,056								516,277
														Total Increase (Decrease) in Net Assets																335,573								635,405

Net Assets
Beginning of period																														2,034,713								1,399,308
End of period (including undistributed net investment income as set forth below)																												$		2,370,286						$		2,034,713
Undistributed (overdistributed) net investment income (loss)																												$				3,293				$				4,917

			Class A				Class B^(a)		Class C					Class J				Class P			Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	171,316			$		65	$	16,496			$		34,665		$		69,916		$	561,722		$	2,386		$		7,413		$		27,701		$		54,787		$		53,147
Reinvested			4,797				38		439					4,061				1,153			28,961			125				279				1,204				1,651				3,941
Redeemed			(101,123	)			(4,007	)	(10,057	)				(49,090	)			(42,082	)		(430,645	)		(2,930	)			(8,893	)			(23,329	)			(33,484)				(83,567	)
Net Increase (Decrease)		$	74,990		$		(3,904	) $	6,878		$	(10,364)					$	28,987		$	160,038		$	(419)			$	(1,201)			$	5,576		$		22,954	$	(26,479			)
Shares:
Sold			7,277				3		722					1,522				2,980			24,308			104				332				1,222				2,483				2,355
Reinvested			211				2		20					183				51			1,274			5				13				54				75				178
Redeemed			(4,414	)			(168	)	(443	)				(2,205	)			(1,849	)		(18,856	)		(130	)			(405	)			(1,031	)			(1,517)				(3,772	)
Net Increase (Decrease)			3,074				(163	)	299					(500	)			1,182			6,726			(21	)			(60	)			245				1,041				(1,239	)
Year Ended October 31, 2014
Dollars:
Sold		$	67,599		$		183	$	7,683			$		37,358		$		32,115		$	461,087		$	2,285		$		5,590		$		16,783		$		21,281		$		64,004
Reinvested			22,872				509		3,549					21,633				3,342			109,388			847				2,015				7,091				7,474				16,873
Redeemed			(52,409	)			(1,159	)	(7,102	)				(29,346	)			(27,675	)		(204,964	)		(3,056	)			(5,317	)			(18,389	)			(13,090)				(32,777	)
Net Increase (Decrease)		$	38,062		$		(467	) $	4,130			$		29,645		$		7,782		$	365,511		$	76		$		2,288		$		5,485		$		15,665		$		48,100
Shares:
Sold			3,401				9		388					1,892				1,602			22,981			116				291				853				1,092				3,445
Reinvested			1,265				29		200					1,227				184			6,028			47				116				401				426				957
Redeemed			(2,625	)			(60	)	(365	)				(1,500	)			(1,399	)		(10,310	)		(153	)			(274	)			(937	)			(679)				(1,682	)
Net Increase (Decrease)			2,041				(22	)	223					1,619				387			18,699			10				133				317				839				2,720

Distributions:
Year Ended October 31, 2015
From net investment income			$(3,001)			$	(4	) $	(138)				$	(2,217)			$	(864)			$ (20,461)		$	(50)			$	(151			) $	(619			) $	(947			) $	(2,258	)
From net realized gain on
investments			(2,088	)			(35	)	(339	)				(1,848	)			(447	)		(12,483	)		(75	)			(174)				(585)				(704			)	(1,683	)
Total Dividends and Distributions			$(5,089)			$	(39	) $	(477)				$	(4,065)			$	(1,311)			$ (32,944)		$	(125)			$	(325			) $	(1,204			) $	(1,651			) $	(3,941	)
Year Ended October 31, 2014
From net investment income			$(2,511)			$	(20	) $	(199)				$	(2,370)			$	(597)			$ (17,416)		$	(66)			$	(197			) $	(708			) $	(875			) $	(2,328	)
From net realized gain on
investments			(20,923	)			(504	)	(3,732	)				(19,272	)			(4,454	)		(105,748	)		(781	)			(1,979)				(6,383)				(6,599			)	(14,545	)
Total Dividends and Distributions			$ (23,434) $				(524	) $	(3,931)					$ (21,642) $				(5,051)			$ (123,164)		$	(847)			$	(2,176			) $	(7,091			) $	(7,474)				$ (16,873)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											Short-Term Income Fund
																											Year Ended								Year Ended
																											October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																											$				41,638				$		33,087
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																															459						7,291
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																															(13,080	)					(12,438	)
							Net Increase (Decrease) in Net Assets Resulting from Operations																								29,017						27,940

Dividends and Distributions to Shareholders
From net investment income																															(41,019	)					(32,788	)
From net realized gain on investments																															(651	)					(979	)
																	Total Dividends and Distributions														(41,670	)					(33,767	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																													289,518								761,881
														Total Increase (Decrease) in Net Assets															276,865								756,054

Net Assets
Beginning of period																													2,538,176								1,782,122
End of period (including undistributed net investment income as set forth below)																											$		2,815,041						$		2,538,176
Undistributed (overdistributed) net investment income (loss)																											$				3,774				$		3,154

			Class A				Class C		Class J					Class P			Institutional				R-1		R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	143,071			$		26,015	$	37,156			$		89,972		$	720,313		$		498	$	602		$		4,762		$		3,769		$		5,638
Reinvested			3,484				389		1,570					947			33,356				9		17				126				183				147
Redeemed			(124,474	)			(31,401	)	(34,235	)				(76,490	)		(499,955	)			(734	)	(592	)			(7,883	)			(4,110	)			(2,632	)
Net Increase (Decrease)		$	22,081		$		(4,997	) $	4,491			$		14,429		$	253,714		$		(227	) $	27		$		(2,995)			$	(158)			$	3,153
Shares:
Sold			11,717				2,129		3,043					7,364			58,984				41		49				390				309				461
Reinvested			285				32		129					78			2,732				1		2				10				15				12
Redeemed			(10,189	)			(2,569	)	(2,804	)				(6,263	)		(40,933	)			(60	)	(49	)			(645	)			(337	)			(215	)
Net Increase (Decrease)			1,813				(408	)	368					1,179			20,783				(18	)	2				(245	)			(13	)			258
Year Ended October 31, 2014
Dollars:
Sold		$	93,607		$		22,145	$	35,492		$	124,787				$	1,018,630			$	554	$	594		$		12,454		$		12,996		$		6,537
Reinvested			4,323				529		1,654					629			24,796				14		18				139				97				92
Redeemed			(156,237	)			(37,638	)	(41,219	)				(109,699	)		(238,125	)			(946	)	(288	)			(8,827	)			(3,171	)			(2,056	)
Net Increase (Decrease)	$	(58,307)					$ (14,964) $		(4,073)				$	15,717		$	805,301		$		(378	) $	324		$		3,766		$		9,922		$		4,573
Shares:
Sold			7,642				1,807		2,898					10,193			83,261				45		49				1,016				1,061				534
Reinvested			353				43		135					51			2,023				1		1				11				8				7
Redeemed			(12,754	)			(3,071	)	(3,367	)				(8,957	)		(19,448	)			(77	)	(24	)			(720	)			(259	)			(168	)
Net Increase (Decrease)			(4,759	)			(1,221	)	(334	)				1,287			65,836				(31	)	26				307				810				373

Distributions:
Year Ended October 31, 2015
From net investment income $			(3,787)			$	(409	) $	(1,558)				$	(1,242)			$ (33,551)		$		(9	) $	(17			) $	(123			) $	(179			) $	(144	)
From net realized gain on
investments			(68	)			(22	)	(29	)				(20	)		(502	)			–		–				(3)				(4)				(3	)
Total Dividends and Distributions $			(3,855)			$	(431	) $	(1,587)				$	(1,262)			$ (34,053)		$		(9	) $	(17			) $	(126			) $	(183			) $	(147	)
Year Ended October 31, 2014
From net investment income $			(4,570)			$	(554	) $	(1,607)				$	(970)			$ (24,743)		$		(13	) $	(17			) $	(130			) $	(95			) $	(89	)
From net realized gain on
investments			(179	)			(56	)	(66	)				(28	)		(634	)			(1	)	(1)				(9)				(2)				(3	)
Total Dividends and Distributions $			(4,749)			$	(610	) $	(1,673)				$	(998)			$ (25,377)		$		(14	) $	(18			) $	(139			) $	(97			) $	(92	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																									SmallCap Fund^(a)
																							Year Ended							Year Ended
																							October 31, 2015							October 31, 2014
Operations
Net investment income (loss)																							$		(559	)				$		(609	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									31,616							64,485
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									1,980							(24,171	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																				33,037							39,705

Dividends and Distributions to Shareholders
From net investment income																									–							(158	)
From net realized gain on investments																									(57,913	)						(35,644	)
												Total Dividends and Distributions													(57,913	)						(35,802	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							114,771									18,085
										Total Increase (Decrease) in Net Assets															89,895							21,988

Net Assets
Beginning of period																							509,082							487,094
End of period (including undistributed net investment income as set forth below)																						$	598,977						$	509,082
Undistributed (overdistributed) net investment income (loss)																							$		(582	)				$		9
		Class A			Class B^(b)		Class C			Class J		Class P		Institutional						R-1			R-2		R-3					R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	63,659		$	13	$	11,775		$	16,663	$	7,846		$		28,320		$		1,048	$		1,876	$	6,126		$			6,935	$	10,174
Reinvested		21,091			328		1,864			23,309		9				7,837				274			313		727					455		1,324
Redeemed		(39,668	)		(2,928	)	(3,114	)		(30,577	)	(1,722	)			(7,827	)			(371	)		(782	)	(3,737	)				(2,063	)	(4,406	)
Net Increase (Decrease)	$	45,082		$	(2,587	) $	10,525		$	9,395	$	6,133		$		28,330		$		951	$		1,407	$	3,116		$			5,327	$	7,092
Shares:
Sold		2,992			1		598			814		349				1,271				50			90		288					319		477
Reinvested		1,084			19		103			1,247		1				382				15			16		37					23		65
Redeemed		(1,887	)		(157	)	(158	)		(1,508	)	(77	)			(345	)			(18	)		(38	)	(176	)				(96	)	(201	)
Net Increase (Decrease)		2,189			(137	)	543			553		273				1,308				47			68		149					246		341
Year Ended October 31, 2014^(c)
Dollars:
Sold	$	31,748		$	70	$	5,440		$	16,496	$	75		$		6,647		$		626	$		757	$	2,883		$			1,663	$	2,494
Reinvested		12,875			260		937			14,946		–				4,677				180			218		438					303		809
Redeemed		(34,544	)		(1,149	)	(2,870	)		(32,788	)	–				(4,755	)			(1,116	)		(1,041	)	(2,894	)				(2,157	)	(3,143	)
Net Increase (Decrease)	$	10,079		$	(819	) $	3,507		$	(1,346	) $	75		$		6,569		$		(310	) $		(66	) $	427		$			(191	) $	160
Shares:
Sold		1,465			4		263			787		3				292				29			35		133					74		110
Reinvested		608			13		47			732		–				211				9			11		21					14		37
Redeemed		(1,594	)		(58	)	(141	)		(1,566	)	–				(206	)			(53	)		(49	)	(133	)				(96	)	(138	)
Net Increase (Decrease)		479			(41	)	169			(47	)	3				297				(15	)		(3	)	21					(8	)	9

Distributions:
Year Ended October 31, 2015
From net investment income		$–		$	– $		–		$	– $		–		$		–		$		– $			– $		–		$			– $		–
From net realized gain on
investments		(21,322	)		(330	)	(1,913	)		(23,316	)	(9	)			(7,838	)			(274	)		(405	)	(727	)				(455	)	(1,324	)
Total Dividends and Distributions		$ (21,322) $			(330	) $	(1,913)			$ (23,316) $		(9)			$	(7,838)			$	(274	) $		(405	) $	(727)			$		(455	) $	(1,324	)
Year Ended October 31, 2014^(c)
From net investment income		$–		$	– $		–		$	– $		–		$		(154)			$	– $			– $		–		$			– $		(4	)
From net realized gain on
investments		(12,988	)		(263	)	(973	)		(14,951	)	–				(4,523	)			(180	)		(220	)	(438	)				(303	)	(805	)
Total Dividends and Distributions		$ (12,988) $			(263	) $	(973)			$ (14,951) $		–		$		(4,677)			$	(180	) $		(220	) $	(438)			$		(303	) $	(809	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																							SmallCap Value Fund II
																							Year Ended				Year Ended
																							October 31, 2015				October 31, 2014
Operations
Net investment income (loss)																							$		7,869		$		3,590
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																							175,277						136,660
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																							(169,808			)			2,506
						Net Increase (Decrease) in Net Assets Resulting from Operations																			13,338				142,756

Dividends and Distributions to Shareholders
From net investment income																									(4,369	)			(7,271	)
From net realized gain on investments																							(136,041			)			(98,502	)
																Total Dividends and Distributions							(140,410			)			(105,773	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							(111,118			)			(21,399	)
														Total Increase (Decrease) in Net Assets									(238,190			)			15,584

Net Assets
Beginning of period																							1,562,796						1,547,212
End of period (including undistributed net investment income as set forth below)																						$	1,324,606				$		1,562,796
Undistributed (overdistributed) net investment income (loss)																							$		5,405		$		1,046
		Class A				Class J				Class P				Institutional		R-1		R-2		R-3			R-4		R-5		R-6
Capital Share Transactions:
Year Ended October 31, 2015 ^(b)
Dollars:
Sold	$	2,557		$		2,113		$		35		$	182,968		$	402	$	1,246	$	3,363	$		2,347	$	5,776	$	10
Reinvested		70				2,120				2				132,327		211		485		1,213			1,393		2,475		1
Redeemed		(399	)			(3,304	)			–				(433,011	)	(522	)	(2,235	)	(3,046	)		(3,740	)	(5,975	)	–
Net Increase (Decrease)	$	2,228		$		929		$		37		$	(117,716		) $	91	$	(504	) $	1,530	$		– $		2,276	$	11
Shares:
Sold		192				164				3				13,702		31		100		261			181		441		1
Reinvested		6				172				–				10,497		18		41		99			113		199		–
Redeemed		(31	)			(256	)			–				(31,710	)	(42	)	(178	)	(237	)		(289	)	(460	)	–
Net Increase (Decrease)		167				80				3				(7,511	)	7		(37	)	123			5		180		1
Year Ended October 31, 2014 ^(a)
Dollars:
Sold	$	249		$		3,462		$		15			$	82,991	$	376	$	895	$	3,013	$		3,705	$	8,020		N/A
Reinvested		–				1,219				–				100,947		141		390		813			767		1,496		N/A
Redeemed		(32	)			(3,805	)			–				(205,532	)	(773	)	(2,927	)	(4,334	)		(2,967	)	(9,528	)	N/A
Net Increase (Decrease)	$	217		$		876		$		15			$	(21,594	) $	(256	) $	(1,642	) $	(508	) $		1,505	$	(12	)	N/A
Shares:
Sold		18				256				1				6,025		29		69		222			275		592		N/A
Reinvested		–				93				–				7,515		11		30		62			58		113		N/A
Redeemed		(2	)			(281	)			–				(14,942	)	(60	)	(223	)	(323	)		(218	)	(707	)	N/A
Net Increase (Decrease)		16				68				1				(1,402	)	(20	)	(124	)	(39	)		115		(2	)	N/A

Distributions:
Year Ended October 31, 2015^(b)
From net investment income		$(2)			$	–		$		–			$	(4,343	) $	– $		– $		– $			– $		(24	) $	–
From net realized gain on
investments		(68	)			(2,120	)			(2	)			(128,097	)	(211	)	(485	)	(1,213	)		(1,393	)	(2,451	)	(1	)
Total Dividends and Distributions		$(70)			$	(2,120)			$	(2) $				(132,440	) $	(211	) $	(485	) $	(1,213	) $		(1,393	) $	(2,475	) $	(1)
Year Ended October 31, 2014^(a)
From net investment income		$–		$		–		$		–			$	(7,197	) $	– $		– $		(4	) $		(17	) $	(53	)	N/A
From net realized gain on
investments		–				(1,219	)			–				(93,750	)	(141	)	(390	)	(809	)		(750	)	(1,443	)	N/A
Total Dividends and Distributions		$–		$		(1,219)			$	–		$	(100,947		) $	(141	) $	(390	) $	(813	) $		(767	) $	(1,496	)	N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands														Tax-Exempt Bond Fund
														Year Ended			Year Ended
														October 31, 2015		October 31, 2014
Operations
Net investment income (loss)													$	9,316		$	9,195
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements														299			(1,982	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies														(2,628	)		14,045
					Net Increase (Decrease) in Net Assets Resulting from Operations									6,987			21,258

Dividends and Distributions to Shareholders
From net investment income														(9,623	)		(8,811	)
											Total Dividends and Distributions			(9,623	)		(8,811	)

Capital Share Transactions
Net increase (decrease) in capital share transactions														35,992			(10,599	)
									Total Increase (Decrease) in Net Assets					33,356			1,848

Net Assets
Beginning of period														217,843			215,995
End of period (including undistributed net investment income as set forth below)													$	251,199		$	217,843
Undistributed (overdistributed) net investment income (loss)													$	668		$	1,030
			Class A		Class B^(a)		Class C		Class P		Institutional
Capital Share Transactions:
Year Ended October 31, 2015^(b),(c)
Dollars:
Sold		$	49,882	$	– $		6,900	$	9,906	$	341
Reinvested			7,592		8		297		24		1
Redeemed			(35,976	)	(715	)	(2,210	)	(58	)	–
Net Increase (Decrease)		$	21,498	$	(707	) $	4,987	$	9,872	$	342
Shares:
Sold			6,772		–		936		1,357		47
Reinvested			1,029		1		40		3		–
Redeemed			(4,892	)	(96	)	(299	)	(8	)	–
Net Increase (Decrease)			2,909		(95	)	677		1,352		47
Year Ended October 31, 2014
Dollars:
Sold		$	15,214	$	1	$	2,856		N/A		N/A
Reinvested			7,042		25		250		N/A		N/A
Redeemed			(33,331	)	(362	)	(2,294	)	N/A		N/A
Net Increase (Decrease)	$	(11,075		) $	(336	) $	812		N/A		N/A
Shares:
Sold			2,106		–		397		N/A		N/A
Reinvested			974		3		34		N/A		N/A
Redeemed			(4,663	)	(51	)	(319	)	N/A		N/A
Net Increase (Decrease)			(1,583	)	(48	)	112		N/A		N/A

Distributions:
Year Ended October 31, 2015^(b),(c)
From net investment income			$(9,202	) $	(9	) $	(387	) $	(24	)$	(1	)
From net realized gain on
investments			–		–		–		–		–
Total Dividends and Distributions			$(9,202	) $	(9	) $	(387	) $	(24	)$	(1	)
Year Ended October 31, 2014
From net investment income			$(8,476	) $	(26	) $	(309	)	N/A		N/A
From net realized gain on
investments			–		–		–		N/A		N/A
Total Dividends and Distributions			$(8,476	) $	(26	) $	(309	)	N/A		N/A

Principal Funds, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and operates as a series fund in the mutual fund industry. The financial statements for California Municipal Fund, Core Plus Bond Fund, Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, Inflation Protection Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap S&P 500 Index Fund, LargeCap Value Fund, MidCap Fund, MidCap Value Fund III, Money Market Fund, Principal Capital Appreciation Fund, Real Estate Securities Fund, Short-Term Income Fund, SmallCap Blend Fund, SmallCap Value Fund II and Tax-Exempt Bond Fund (known as the "Funds") are presented herein. The Funds may offer up to eleven classes of shares: Class A, Class C, Class J, Class P, Institutional, R-1, R-2, R-3, R-4, R-5, and R-6. Information presented in these financial statements pertains to Class A, Class C, and Class P shares. Certain detailed financial information for Class J, Institutional, R-1, R-2, R-3, R-4, R-5, and R-6 classes of shares is provided separately.

Each of the Funds is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946, Financial Services - Investment Companies. Each of the Funds was an investment company at all times during the year. The Funds have not provided financial support, and are not contractually required to provide financial support to any investee.

Effective June 3, 2014, the initial purchases of $10,000 of Class A and Class P shares of International Fund I, MidCap Value Fund III, and SmallCap Value Fund II were made by Principal Management Corporation (the “Manager”).

Effective June 3, 2014, the initial purchases of $10,000 of Class P shares of LargeCap Growth Fund I, LargeCap Value Fund, and SmallCap Fund were made by the Manager.

Effective February 20, 2015, Bond & Mortgage Securities Fund acquired all the assets and assumed all the liabilities of Core Plus Bond Fund I pursuant to a plan of acquisition approved by shareholders on February 13, 2015. The purpose of the acquisition was to combine two funds managed by the Manager with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a taxable exchange of 8,899,000 shares from Core Plus Bond Fund I for 7,568,000 shares valued at $82,846,000 of Bond & Mortgage Securities Fund at an approximate exchange rate of .85, .84, .85, .85, .84, and .85 for Institutional, R-1, R-2, R-3, R-4 and R-5 classes of shares, respectively. The investment securities of Core Plus Bond Fund I, with a fair value of approximately $82,437,000 were the primary assets acquired by Bond & Mortgage Securities Fund. For financial reporting purposes, assets received and shares issued by Bond & Mortgage Securities Fund were recorded at fair value. The aggregate net assets of Core Plus Bond Fund I and Bond & Mortgage Securities Fund immediately prior to the acquisition in accordance with U.S. GAAP were approximately $82,846,000 and $4,229,384,000, respectively. The aggregate net assets of Bond & Mortgage Securities Fund immediately following the acquisition were $4,312,230,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitations.

Assuming the acquisition had been completed on November 1, 2014, the beginning of the fiscal year for Bond & Mortgage Securities Fund, Bond & Mortgage Securities Fund’s pro forma results of operations for the year ended October 31, 2015, would have been $112,191,000 of net investment income, $54,712,000 of net realized and unrealized loss on investments, and $57,479,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Bond & Mortgage Securities Fund that have been included in Bond & Mortgage Securities Fund’s statement of operations since February 20, 2015.

Effective February 23, 2015, Class B shares discontinued operations and converted to Class A shares.

Effective February 27, 2015, the initial purchase of $10,000 of Institutional shares of California Municipal Fund was made by the Manager.

Effective May 18, 2015, the initial purchase of $10,000 of Institutional shares of Tax-Exempt Bond Fund was made by the Manager.

Effective August 24, 2015, the initial purchase of $10,000 of Class P shares of California Municipal Fund and Tax-Exempt Bond Fund were made by the Manager.

Effective August 31, 2015, Bond & Mortgage Securities Fund changed its name to Core Plus Bond Fund.

Effective August 31, 2015, SmallCap Blend Fund changed its name to SmallCap Fund.

Effective April 24, 2015, Principal Capital Securities Fund acquired all the assets and assumed all the liabilities of LargeCap Blend Fund II pursuant to a plan of acquisition approved by shareholders on April 17, 2015. The purpose of the acquisition was to combine two funds managed by Principal Management Corporation with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 64,280,000 shares from LargeCap Blend Fund II for 8,398,000 shares valued at $508,620,000 of Principal Capital Appreciation Fund at an approximate exchange rate of .13 for Class J, Institutional, R-1, R-2, R-3, R-4 and R-5 classes of shares. The investment securities of LargeCap Blend Fund II, with a fair value of approximately $540,086,000 and a cost of $486,868,000, were the primary assets acquired by Principal Capital Appreciation Fund. For financial reporting purposes, assets received and shares issued by Principal Capital Appreciation Fund were recorded at fair value; however, the cost basis of the investments received from LargeCap Blend Fund II was carried forward to align ongoing reporting of Principal Capital Appreciation Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The aggregate net assets of LargeCap Blend Fund II and Principal Capital Appreciation Fund immediately prior to the acquisition in accordance with U.S. GAAP were approximately $508,620,000 ($5,882,000 of accumulated realized losses and $53,218,000 of unrealized appreciation), and $2,584,975,000, respectively. The aggregate net assets of Principal Capital Appreciation Fund immediately following the acquisition were $3,093,595,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitations.

Assuming the acquisition had been completed on November 1, 2014, the beginning of the fiscal year for Principal Capital Appreciation Fund, Principal Capital Appreciation Fund’s pro forma results of operations for the year ended October 31, 2015, would have been $38,239,000 of net investment income, $122,408,000 of net realized and unrealized gain on investments, and $160,647,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Principal Capital Appreciation Fund that have been included in Principal Capital Appreciation Fund’s statement of operations since April 24, 2015.

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 Board of Directors declares separate dividends on each class of shares.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 (with the exception of Money Market Fund) value securities for which market quotations are readily available at market 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, market conditions and dealer-supplied valuations 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 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 as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors. Many factors 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 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 Funds 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.

Money Market Fund values its securities, other than holdings of other publicly traded investment funds, at amortized cost as permitted under Rule 2a-7 of the Investment Company Act of 1940. Other publicly traded investment funds are valued at the funds’ net asset value. Under the amortized cost method, a security is valued by applying a constant yield to maturity of the difference between the principal amount due at maturity and the cost of the security to the Funds.

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 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 fund:

Income and Investment Transactions. The Funds record investment transactions on a trade date basis. 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. Discounts and premiums on securities are accreted/amortized over the lives of the respective securities. The Funds allocate daily all income and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding (number of settled shares outstanding for Money Market Fund) of each class.

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 (number of settled shares outstanding for Money Market Fund) 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.

Distributions to Shareholders. With respect to Money Market Fund, all net investment income and any realized gains from investment transactions are declared as dividends daily to settled shares of record as of that day. With respect to California Municipal Fund, Core Plus Bond Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, Short-Term Income Fund and Tax-Exempt Bond Fund, net investment income is declared as dividends daily to settled shares of record as of that day, and all distributions of realized gains from investment transactions are recorded on the ex-dividend date. Dividends and distributions to shareholders of the other Funds 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. generally accepted accounting principles. These differences are primarily due to differing treatments for net operating losses, foreign currency transactions, 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, redemptions-in-kind, 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.

Global Real Estate Securities Fund and Real Estate Securities Fund receive substantial distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net 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 must be used in reporting the character of income and distributions for financial statement purposes.

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.

The Funds evaluate 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. During the year ended October 31, 2015, the Funds did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years from 2012-2015. 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 foreign dividends on the statements of operations. In consideration of recent decisions rendered by European courts, the Funds have filed additional tax reclaims for taxes withheld in prior years. Due to the uncertainty and timing of these reclaims, a corresponding receivable will only be booked when both the amount is known and significant uncertainties regarding collectability are removed. The receivable amount is shown as dividends and interest receivable on the statements of assets and liabilities.

Gains realized upon the disposition of certain foreign securities held by the Funds may be subject to capital gains tax, payable prior to repatriation of sale proceeds. The tax is computed on certain net realized gains and, if any, is shown on the statement of operations. Realized losses in excess of gains may be carried forward to offset future gains. In addition, the Funds accrue an estimated deferred tax liability for future gains on certain foreign securities. Any accrued tax liability is shown on the statement of assets and liabilities. At October 31, 2015, Diversified International Fund had no foreign tax refund receivable and had a deferred tax liability of $232,000 and International Emerging Markets Fund had a foreign tax refund receivable of $143,000 and had a deferred tax liability of $389,000 relating to foreign securities.

Borrowings. Pursuant to an exemptive order issued by the Securities and Exchange Commission, 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. Interest paid and received on borrowings is the average of the current repurchase agreement rate and the bank loan rate (the higher of (i) the Federal Funds Rate or (ii) the One Month LIBOR rate plus 1.00%). During the year ended October 31, 2015, Diversified International Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, International Emerging Markets Fund, International Fund I, LargeCap Value Fund, MidCap Fund, Principal Capital Appreciation Fund, Real Estate Securities Fund, Short-Term Income Fund, and SmallCap Value Fund II each borrowed from the Facility. Core Plus Bond Fund, Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap S&P 500 Index Fund, LargeCap Value Fund, MidCap Fund, MidCap Value Fund III, Principal Capital Appreciation Fund, Real Estate Securities Fund, Short-Term Income Fund, SmallCap Fund, and SmallCap Value Fund II each loaned to the Facility. The interest expense associated with these borrowings is included in other expenses on the statements of operations. The interest received is included in interest on the statements of operations.

In addition, certain of the Funds participate with other registered investment companies managed by the Manager in an unsecured joint line of credit with a bank which allows the participants to borrow up to $75 million, collectively. Borrowings are made solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each participant, based on its borrowings, at a rate equal to the higher of the Federal Funds Rate or the One Month LIBOR rate plus 1.00%. Additionally, a commitment fee is charged at an annual rate of .10% on the amount of the line of credit. During the year ended October 31, 2015, California Municipal Fund, Core Plus Bond Fund, Global Diversified Income Fund, International Emerging Markets Fund, and Principal Capital Appreciation Fund, borrowed against the line of credit. The interest expense associated with these borrowings is included in other expenses on the statements of operations.

Credit Linked Notes. Global Diversified Income Fund invests in structured notes whose market values are primarily derived from changes in the value of various credit indices and other factors. Valuations on these securities may be volatile as the payment features on certain notes may contain attributes that multiply the effects of changes in the values of the underlying indices. Structured notes may entail a greater degree of market risk than other types of debt securities. Structured notes may also be more volatile, less liquid, and more difficult to accurately price than less complex securities or more traditional debt securities. Fluctuations in value of the structured notes are recorded as unrealized gains and losses in the accompanying financial statements. Interest income is accrued daily. These notes are subject to prepayment, credit, and interest rate risks. At maturity, or when a note is sold, the Fund records a realized gain or loss.

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, 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.

Core Plus Bond Fund, Global Diversified Income Fund, and Inflation Protection Fund have financial instruments that are subject to Master Netting Agreements or similar agreements.

As of October 31, 2015, financial assets and liabilities subject to Master Netting Agreements or similar agreements were as follows (amounts in thousands):


Fund: Core Plus Bond Fund
Financial Derivative Instruments: Over the Counter Summary

		Counterparty
		Brown Brothers
		Harriman & Co.
Assets*
Foreign Currency Contracts	$	198
Total OTC	$	198

Liabilities*
Foreign Currency Contracts	$	(52	)
Total OTC	$	(52	)

Net Market Value of OTC Derivatives	$	146
Collateral (Received)/Pledged		—
Net Exposure	$	146



Fund: Global Diversified Income Fund
Financial Derivative Instruments: Over the Counter Summary

								Counterparty
																			Standard
																			Chartered
					Bank of New											JP Morgan			Bank – Hong
		Bank of America			York Mellon			Barclays		Credit Suisse			HSBC			Chase			Kong		Total
Assets*
Foreign Currency Contracts	$	570		$	7		$	81	$	—		$	—		$	8,221		$	34	$	8,913
Total OTC	$	570		$	7		$	81	$	—		$	—		$	8,221		$	34	$	8,913

Liabilities*
Credit Default Swaps	$	—		$	—		$	—	$	(4,100	)	$	—		$	—		$	—	$	(4,100	)
Foreign Currency Contracts		(282	)		(22	)		—		—			(4	)		(2,583	)		—		(2,891	)
Total OTC	$	(282	)	$	(22	)	$	—	$	(4,100	)	$	(4	)	$	(2,583	)	$	—	$	(6,991	)

Net Market Value of OTC
Derivatives	$	288		$	(15	)	$	81	$	(4,100	)	$	(4	)	$	5,638		$	34	$	1,922
Collateral (Received)/Pledged		(219	)^		—			—		4,100	**		—			(5,440	)^		—		(1,559	)^
Net Exposure	$	69		$	(15	)	$	81	$	—		$	(4	)	$	198		$	34	$	363


Fund: High Yield Fund
Financial Derivative Instruments: Over the Counter Summary

		Counterparty
		Brown Brothers
		Harriman & Co.
Assets*
Foreign Currency Contracts	$	538
Collateral (Received)/Pledged		—
Net Exposure	$	538


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 31, 2015


3. Operating Policies (Continued)

Fund: Inflation Protection Fund
Financial Derivative Instruments: Over the Counter Summary

													Counterparty
		Bank																				JP
		of		Barclays			BNP						Deutsche			Goldman						Morgan			Morgan
		America		Bank PLC			Paribas			Citigroup			Bank AG			Sachs			HSBC			Chase			Stanley			UBS AG			Total
Assets*
Foreign Currency Contracts	$	3	$	871		$	442		$	460		$	923		$	616		$	1,215		$	479		$	184		$	466		$	5,659
Purchased Interest Rate
Swaptions		—		130			—			—			125			—			—			—			—			—			255
Total OTC	$	3	$	1,001		$	442		$	460		$	1,048		$	616		$	1,215		$	479		$	184		$	466		$	5,914

Liabilities*
Foreign Currency Contracts	$	—	$	(112	)	$	(47	)	$	(1,207	)	$	(828	)	$	(207	)	$	(405	)	$	(286	)	$	(49	)	$	(1,043	)	$	(4,184	)
Interest Rate Swaps		—		(286	)		—			—			—			—			—			—			—			—			(286	)
Written Interest Rate
Swaptions		—		(2,999	)		—			—			—			—			—			—			—			—			(2,999	)
Total OTC	$	—	$	(3,397	)	$	(47	)	$	(1,207	)	$	(828	)	$	(207	)	$	(405	)	$	(286	)	$	(49	)	$	(1,043	)	$	(7,469	)

Net Market Value of OTC
Derivatives	$	3	$	(2,396	)	$	395		$	(747	)	$	220		$	409		$	810		$	193		$	135		$	(577	)	$	(1,555	)
Collateral (Received)/Pledged		—		2,396	**		—			—			—			—			—			—			—			—			2,396	**
Net Exposure	$	3	$	—		$	395		$	(747	)	$	220		$	409		$	810		$	193		$	135		$	(577	)	$	841

* Represents amount of offsetting derivative assets or liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or liabilities for presentation on the statements of assets and liabilities.

The financial instruments that are subject to Master Netting Agreements or similar agreements may include right of setoff provisions. Derivative instruments include provisions to setoff positions covered under the agreements with the same counterparties and provisions to setoff positions outside of the agreements with the same counterparties in the event of default by one of the parties. Derivative instruments also include collateral provisions. Collateral received and pledged are generally settled daily with each counterparty.

Floating Rate Notes Issued in Conjunction with Securities Held. California Municipal Fund and Tax-Exempt Bond Fund have entered into transactions in which a fund transfers fixed rate bonds to trusts in exchange for cash and residual interests in the trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties. The fund enters into shortfall and forbearance agreements with the trusts, which commit the fund to pay the trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the fund (inverse floating rate securities) include the right of the fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the fixed rate bond from the trusts to the fund, thereby collapsing the trusts. The fund accounts for the transfer of bonds to the trusts as secured borrowings, with the securities transferred remaining in the fund’s investment assets, and the related floating rate notes reflected as fund liabilities under the caption “floating rate notes issued” in the statement of assets and liabilities. The notes issued by the trusts have interest rates that reset weekly, and the floating rate note holders have the option to tender their notes to the trusts for redemption at par at each reset date.

Foreign Currency Contracts. Certain of the Funds may be subject to foreign currency exchange rate risk in the normal course of pursuing such Fund’s investment objective. The Funds may use foreign currency contracts to gain exposure to, or hedge against changes in the value of foreign currencies. Certain of the Funds enter into forward contracts to purchase or 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 market 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.

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 Money Market Fund) 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, 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. 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 net unrealized appreciation (depreciation) of investments 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.

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 market 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.

Joint Trading Account. Certain of the Funds may, pursuant to an exemptive order issued by the Securities and Exchange Commission, transfer uninvested funds into a joint trading account. The order permits the participating Funds’ cash balances to be deposited into a single joint account along with the cash of other registered investment companies managed by the Manager. These balances may be invested in one or more short-term instruments or repurchase agreements that are collateralized by U.S. government securities. Earnings from the joint trading account are allocated to each of the Funds based on their pro rata participating ownership interest in the joint trading account.

Mortgage Dollar Rolls. Certain of the Funds have entered into mortgage-dollar-roll transactions on “to-be-announced” securities (“TBA’s”), 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 turnover ratio. Amounts to be received or paid in connection with open mortgage-dollar-rolls are included in Investment securities sold and Investment securities purchased on the statements of assets and liabilities.

Options Contracts. During the period Global Diversified Income Fund and Inflation Protection Fund wrote call and put options on futures, swaps, securities, indices and currencies they own or in which they may invest and inflation floors for both hedging and non-hedging purposes. 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 and inflation floor, 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. An inflation floor can give downside protection to investments in inflation-linked products. 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 future, swap, security, index or currency transaction to determine the realized gain or loss. A fund, as a writer of an option, has no control over whether the underlying future, swap, security, index or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, swap, security, index or currency 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. 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 future, swap, security, index or currency transaction to determine the realized gain or loss. Details of options contracts open at year end are included in the Funds' schedules of investments. Transactions in options written during the year ended October 31, 2015, were as follows:

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 Funds’ policy that its 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.

Senior Floating Rate Interests. The Funds may invest in senior floating rate interests (bank loans). Senior floating rate interests hold the most senior position in the capital structure of a business entity (the “Borrower”), are typically 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. 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 London InterBank Offered Rate (LIBOR) or the prime rate offered by one or more major United States banks.

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 (“commitments”). All or a portion of the commitments may be unfunded. The Funds are obligated to fund these commitments at the borrower’s discretion. Therefore, the Funds must have funds sufficient to cover its contractual obligation. Unfunded loan commitments are marked to market daily and the unrealized gain or loss is shown as a separate line item called unfunded loan commitments on the statements of assets and liabilities. As of October 31, 2015, the unfunded loan commitments were as follows (amounts in thousands):

Short Sales. Global Diversified Income Fund entered into short sales transactions during the period. 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 statement 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 appear as dividends and interest on shorts on the statement 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 statement of assets and liabilities and securities segregated as collateral are footnoted in the schedule 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 are included as short sale fees on the statement of operations.

Swap Agreements. Core Plus Bond Fund, Global Diversified Income Fund, High Yield Fund, and Inflation Protection Fund invested in swap agreements during the period. Swap agreements are privately 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 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; changes in value are recorded as unrealized gain or loss. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments 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 with a credit default swap on indices which is less expensive than it would be to buy many credit default swap to achieve a similar effect. Credit-default swap 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 market 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.

Interest rate swaps involve the commitment to exchange cash flows based on changes in the value of a specific reference security or a basket of securities.

As of October 31, 2015, counterparties had pledged collateral for swap agreements of $2,810,450 for High Yield Fund. The collateral is maintained in a segregated account and is not recorded in the books and records of the funds. 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 “to-be-announced” (“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. Principal LifeTime 2010 Fund, Principal LifeTime 2015 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2025 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2035 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2045 Fund, Principal LifeTime 2050 Fund, Principal LifeTime 2055 Fund, Principal LifeTime 2060 Fund, Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hyrbrid 2060 Fund, Principal LifeTime Hybrid Income Fund, and Principal LifeTime Strategic Income Fund (collectively, the “Principal LifeTime Funds”) along with the SAM Balanced, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, and SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) along with Real Estate Allocation Fund invest in Institutional Class shares of other series of Principal Funds, Inc. (the "Underlying Funds").

The performance and risks of each Principal LifeTime Fund, and SAM Portfolio (singly, “a fund of funds” and collectively, “the funds of funds”) directly correspond to the performance and risks of the underlying funds in which the fund of funds invest. By investing in many underlying funds, the funds of funds have partial exposure to the risks of many different areas of the market. The more a fund of funds allocates to stock funds, the greater the expected risk.

An underlying fund to a fund of funds may experience relatively large redemptions or purchases as the fund of funds periodically reallocates or rebalances its assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs. In addition, when a fund of funds reallocates or redeems significant assets away from an underlying fund, the loss of assets to the underlying fund could result in increased expense ratios for that fund.

The Manager is the advisor to the Principal LifeTime Funds, PVC Principal LifeTime Accounts, Real Estate Allocation Fund, SAM Portfolios, PVC SAM Portfolios, PVC Diversified Balanced Account, PVC Diversified Balanced Managed Volatility Account, PVC Diversified Growth Account, PVC Diversified Growth Managed Volatility Account, PVC Diversified Income Account, and each of the underlying funds. Principal Global Investors, LLC ("PGI") is Sub-Advisor to the Principal LifeTime Funds, PVC Principal LifeTime Accounts, PVC Diversified Balanced Account, PVC Diversified Balanced Managed Volatility Account, PVC Diversified Growth Account, PVC Diversified Growth Managed Volatility Account, PVC Diversified Income Account, Principal Real Estate Investors, LLC (“Principal-REI”) is the Sub-Advisor to Real Estate Allocation Fund, and Edge Asset Management, Inc. ("Edge") is the Sub-Advisor to the SAM Portfolios and PVC SAM Portfolios. PGI, Principal-REI or Edge also serves as Sub-Advisor to some or all of the underlying funds. The Manager, PGI, Principal-REI, and Edge are committed to minimizing the potential impact of underlying fund risk on underlying funds to the extent consistent with pursuing the investment objectives of the fund of funds which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.

As of October 31, 2015, the SAM Portfolios, Principal LifeTime Funds, Principal LifeTime Hybrid Funds, Real Estate Allocation Fund, PVC SAM Portfolios, PVC Principal LifeTime Accounts, PVC Diversified Balanced Account, PVC Diversified Balanced Managed Volatility Account, PVC Diversified Growth Account, PVC Diversified Growth Managed Volatility Account, PVC Diversified Income Account, and PVC Multi-Asset Income Account owned the following percentages, in the aggregate, of the outstanding shares of the underlying 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 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 United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC”). FNMA is a government sponsored corporation, the common stock of which is owned entirely by private stockholders. 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 FNMA are guaranteed as to the timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. 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 shown in thousands):



Derivatives not accounted for	Asset Derivatives October 31, 2015		Fair	Liability Derivatives October 31, 2015		Fair
as hedging instruments	Statement of Assets and Liabilities Location		Value	Statement of Assets and Liabilities Location		Value
Core Plus Bond Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	14
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	198	Payables	$	52
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	118^*	Payables, Net Assets Consist of Net unrealized	$	235	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	316		$	301
Global Diversified Income Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	4,100
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	19,948
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	8,913	Payables	$	2,891
		Total$	8,913		$	26,939
High Yield Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	287	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	538 Payables		$	—
		Total$	825		$	—
Inflation Protection Fund
Foreign exchange contracts	Receivables	$	7,976	Payables	$	5,742
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	1,530^*	Payables, Net Assets Consist of Net unrealized	$	5,919	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	9,506		$	11,661
International Fund I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	1,003^*	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap Growth Fund I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$ 12,366^*		Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap S&P 500 Index Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	4,752^*	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
MidCap Value Fund III
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	1,503^*	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments

*Includes cumulative unrealized appreciation/depreciation of 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.


					Change in Unrealized
					Appreciation/(Depreciation) of
Derivatives not accounted for	Location of Gain or (Loss) on Derivatives		Realized Gain or (Loss) on Derivatives		Derivatives Recognized in Statement
as hedging instruments	Recognized in Statement of Operations		Recognized in Statement of Operations		of Operations
Core Plus Bond Fund
Credit contracts	Net realized gain (loss) from Swap	$	(4,193	)	$	1,545
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Equity contracts	Net realized gain (loss) from Futures	$	(98	)	$	—
	contracts
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	1,753		$	(114	)
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
Interest rate contracts	Net realized gain (loss) from Futures	$	444		$	612
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
	Total	$	(2,094	)	$	2,043
Global Diversified Income Fund
Credit contracts	Net realized gain (loss) from Swap	$	4,665		$	(1.721	)
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Equity contracts	Net realized gain (loss) from Options and	$	(10,315	)	$	44,593
	swaptions/Change in unrealized
	appreciation/(depreciation) of Options and
	swaptions
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	39,887		$	(1,266	)
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
Interest rate contracts	Net realized gain (loss) from Swap	$	531		$	—
	agreements
	Total	$	34,768		$	41,606
High Yield Fund
Credit contracts	Net realized gain (loss) from Swap	$	1,688		$	(17	)
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	6,966		$	(1,172	)
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
	Total	$	8,654		$	(1,189	)
Inflation Protection Fund
Foreign exchange contracts	Net realized gain (loss) from Investment	$	7,444		$	(122	)
	transactions, Foreign currency transactions,
	and Options and swaptions/Change in
	unrealized appreciation/(depreciation) of
	Investments, Options and swaptions, and
	Translation of assets and liabilities in
	foreign currencies
Interest rate contracts	Net realized gain (loss) from Investment	$	(10,349	)	$	(391	)
	transactions, Futures contracts, Options and
	swaptions, and Swap agreements/Change in
	unrealized appreciation/(depreciation) of
	Investments, Futures contracts, Options and
	swaptions, and Swap agreements
	Total	$	(2,905	)	$	(513	)


	NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 31, 2015


3. Operating Policies (Continued)
					Change in Unrealized
					Appreciation/(Depreciation) of
Derivatives not accounted for	Location of Gain or (Loss) on Derivatives	Realized Gain or (Loss) on Derivatives			Derivatives Recognized in Statement
as hedging instruments	Recognized in Statement of Operations	Recognized in Statement of Operations			of Operations
International Fund I
Equity contracts	Net realized gain (loss) from Futures	$	(485	)	$	810
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap Growth Fund I
Equity contracts	Net realized gain (loss) from Futures	$	(5,510	)	$	7,732
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap S&P 500 Index Fund
Equity contracts	Net realized gain (loss) from Futures	$	614		$	2,229
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap Value Fund
Equity contracts	Net realized gain (loss) from Futures	$	(415	)	$	(452	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
MidCap Value Fund III
Equity contracts	Net realized gain (loss) from Futures	$	107		$	787
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap Fund
Equity contracts	Net realized gain (loss) from Futures	$	496		$	(240	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap Value Fund II
Equity contracts	Net realized gain (loss) from Futures	$	3,031		$	(1,815	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts

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 Fund and Inflation Protection Fund. The notional values of the futures contracts will vary in accordance with changing duration of these funds. The level of other derivative activity disclosed in the schedules of investments is representative of the level of derivative activity used in the Funds throughout the year ended October 31, 2015.

Fair value is defined as the price that the Funds would receive upon selling a security 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 use various valuation approaches, including market, income and/or cost approaches. 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 Funds 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. The type of securities included in Level 1 includes listed equities and listed derivatives.

Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayments speeds, credit risk, etc.) Investments which are generally included in this category include corporate bonds, senior floating rate interests, and municipal bonds.

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 corporate bonds and certain mortgage backed securities.

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 Fund’s 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.

Investments which are generally included in the Level 3 category are primarily 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. Valuation models rely on one or more significant unobservable inputs such as prepayment rates, probability of default, or loss severity in the event of default. Significant increases in any of those inputs in isolation would result in a significantly lower fair value measurement. Benchmark pricing procedures set the base price of a security based on current market data. The base price may be a broker-dealer quote, transaction price, or internal value based on relevant market data.

The fair values of these entities are dependent on economic, political and other considerations. The values of the underlying investee entities may be affected by significant changes in the economic conditions, changes in government policies, and other factors (e.g., natural disasters, accidents, conflicts, etc.).

Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors. The Manager has established a Valuation Committee of senior officers and employees, with the responsibility of overseeing the pricing and valuation of all securities, including securities where market quotations are not readily available. The Valuation Committee meets monthly and reports directly to the Board of Directors. The Pricing Group who reports to the Valuation Committee relies on the established Pricing Policies to determine fair valuation. Included in the Pricing Policies is an overview of the approved valuation technique established for each asset class. The Pricing Group will consider all appropriate information available when determining fair valuation.

The Pricing Group relies on externally provided inputs to value Level 3 securities. Security values are updated as new information becomes available. Valuation data and changes in valuation amounts are reviewed on a daily basis based on specified criteria for the security, asset class, and other factors. In addition, valuation data is periodically compared to actual transactions executed by the Funds (i.e., purchases/sales) and differences between transaction prices and prior period valuation data are investigated based on specified tolerances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those instruments. For example, short-term securities held in Money Market Fund are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of these securities, but because the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The beginning of the period timing recognition has been adopted for the significant transfers between levels of each Fund’s assets and liabilities. There were no significant purchases, sales, or transfers into or out of Level 3, except as noted in the Level 3 roll forward.

The table below includes transfers from Level 1 to Level 2 as of October 31, 2015 due to lack of exchange traded valuation data; however observable market inputs were available to support these valuations:

Below are transfers from Level 2 to Level 1 as of October 31, 2015 due to the resumption of trading for previous thinly traded securities:

The following is a summary of the inputs used as of October 31, 2015, in valuing the Funds’ securities carried at value (amounts shown in thousands):


					Level 2 - Other
		Level 1 - Quoted			Significant Observable			Level 3 - Significant
Fund		Prices			Inputs			Unobservable Inputs		Totals (Level 1,2,3)

California Municipal Fund
Municipal Bonds*	$	—		$	225,917		$	—	$	225,917
Total investments in securities $		—		$	225,917		$	—	$	225,917

Core Plus Bond Fund
Bonds*	$	—		$	2,731,541		$	15,417	$	2,746,958
Convertible Bonds*		—			1,325			—		1,325
Investment Companies*		31,460			—			—		31,460
Preferred Stocks
Communications		1,330			—			—		1,330
Financial		14,557			4,414			—		18,971
Utilities		1,811			—			—		1,811
Senior Floating Rate Interests*		—			137,855			—		137,855
U.S. Government & Government Agency Obligations*		—			1,503,557			—		1,503,557
Total investments in securities $		49,158		$	4,378,692		$	15,417	$	4,443,267
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	198		$	—	$	198
Interest Rate Contracts**
Futures	$	118		$	—		$	—	$	118
Liabilities
Credit Contracts**
Exchange Cleared Credit Default Swaps	$	—		$	(14	)	$	—	$	(14	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(52	)	$	—	$	(52	)
Interest Rate Contracts**
Futures	$	(235	)	$	—		$	—	$	(235	)


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 31, 2015


4. Fair Valuation (Continued)
				Level 2 - Other
		Level 1 - Quoted		Significant Observable				Level 3 - Significant
Fund		Prices			Inputs			Unobservable Inputs		Totals (Level 1,2,3)

Diversified International Fund
Common Stocks
Basic Materials	$	—		$	165,098		$	—	$	165,098
Communications		18,451			697,913			—		716,364
Consumer, Cyclical		254,212			833,885			—		1,088,097
Consumer, Non-cyclical		146,227			968,529			—		1,114,756
Energy		152,374			162,228			—		314,602
Financial		332,675			1,171,036			—		1,503,711
Industrial		93,956			555,964			—		649,920
Technology		—			316,079			—		316,079
Utilities		—			167,923			—		167,923
Investment Companies*		67,488			—			—		67,488
Preferred Stocks
Basic Materials		—			12,679			—		12,679
	Total investments in securities $	1,065,383		$	5,051,334		$	—	$	6,116,717

Equity Income Fund
Common Stocks*	$	5,371,453		$	—		$	—	$	5,371,453
Investment Companies*		106,450			—			—		106,450
	Total investments in securities $	5,477,903		$	—		$	—	$	5,477,903

Global Diversified Income Fund
Bonds*	$	—		$	7,312,519		$	46,628	$	7,359,147
Common Stocks
Basic Materials		8,346			16,904			—		25,250
Communications		132,689			60,367			10		193,066
Consumer, Cyclical		17,278			45,692			—		62,970
Consumer, Non-cyclical		117,018			93,976			—		210,994
Diversified		—			7,592			—		7,592
Energy		512,301			12,172			—		524,473
Financial		418,288			313,020			—		731,308
Government		553			—			—		553
Industrial		50,475			43,915			—		94,390
Technology		34,722			1,527			—		36,249
Utilities		343,758			110,894			—		454,652
Convertible Bonds*		—			4,136			—		4,136
Convertible Preferred Stocks
Financial		4,639			—			—		4,639
Credit Linked Structured Notes*		—			4,774			2,903		7,677
Investment Companies*		437,905			—			—		437,905
Preferred Stocks
Communications		19,553			14,696			—		34,249
Consumer, Non-cyclical		—			1,017			—		1,017
Financial		153,928			22,705			—		176,633
Industrial		17,480			167			—		17,647
Utilities		15,315			—			—		15,315
Senior Floating Rate Interests*		—			807,734			8,617		816,351
	Total investments in securities $	2,284,248		$	8,873,807		$	58,158	$	11,216,213
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	8,913		$	—	$	8,913
Liabilities
Credit Contracts**
Credit Default Swaps	$	—		$	(4,100	)	$	—	$	(4,100	)
Equity Contracts**
Options	$	(19,948	)	$	—		$	—	$	(19,948	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(2,891	)	$	—	$	(2,891	)

Global Real Estate Securities Fund
Common Stocks
Consumer, Cyclical	$	—		$	45,645		$	—	$	45,645
Diversified		—			29,418			—		29,418
Financial		1,649,383			1,154,707			—		2,804,090
Investment Companies*		48,442			—			—		48,442
	Total investments in securities $	1,697,825		$	1,229,770		$	—	$	2,927,595


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 31, 2015


4. Fair Valuation (Continued)
			Level 2 - Other
		Level 1 - Quoted	Significant Observable			Level 3 - Significant
Fund		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)

Government & High Quality Bond Fund
Bonds*	$	—	$	480,985	$	—	$	480,985
Investment Companies*		49,367		—		—		49,367
U.S. Government & Government Agency Obligations*		—		1,042,058		—		1,042,058
Total investments in securities $		49,367	$	1,523,043	$	—	$	1,572,410

High Yield Fund
Bonds*	$	—	$	2,994,541	$	—	$	2,994,541
Common Stocks
Consumer, Non-cyclical		—		—		488		488
Energy		—		—		—		—
Technology		—		—		—		—
Convertible Bonds*		—		19,987		—		19,987
Investment Companies*		238,693		—		—		238,693
Preferred Stocks
Financial		—		12,520		—		12,520
Senior Floating Rate Interests*		—		237,659		—		237,659
U.S. Government & Government Agency Obligations*		—		74,764		—		74,764
Total investments in securities $		238,693	$	3,339,471	$	488	$	3,578,652
Assets
Credit Contracts**
Exchange Cleared Credit Default Swaps	$	—	$	287	$	—	$	287
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—	$	538	$	—	$	538

High Yield Fund I
Bonds*	$	—	$	776,378	$	235	$	776,613
Common Stocks
Communications		547		—		—		547
Consumer, Cyclical		—		21		—		21
Industrial		—		—		—		—
Utilities		292		—		173		465
Convertible Bonds*		—		221		639		860
Investment Companies*		29,883		—		—		29,883
Preferred Stocks
Financial		—		3,073		—		3,073
Industrial		—		—		—		—
Senior Floating Rate Interests*		—		53,599		—		53,599
Total investments in securities $		30,722	$	833,292	$	1,047	$	865,061

Income Fund
Bonds*	$	—	$	1,913,161	$	14,471	$	1,927,632
Common Stocks
Financial		—		—		5		5
Industrial		—		—		—		—
Technology		—		—		—		—
Convertible Bonds*		—		9,222		—		9,222
Investment Companies*		130,754		—		—		130,754
Senior Floating Rate Interests*		—		7,576		—		7,576
U.S. Government & Government Agency Obligations*		—		1,050,262		—		1,050,262
Total investments in securities $		130,754	$	2,980,221	$	14,476	$	3,125,451

Inflation Protection Fund
Bonds*	$	—	$	82,247	$	168	$	82,415
Investment Companies*		33,888		—		—		33,888
U.S. Government & Government Agency Obligations*		—		1,522,926		—		1,522,926
Purchased Interest Rate Swaptions		—		255		—		255
Purchased Capped Options		—		—		—		—
Purchased Options		474		2,317		—		2,791
Total investments in securities $		34,362	$	1,607,745	$	168	$	1,642,275
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—	$	5,659	$	—	$	5,659
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—	$	233	$	—	$	233
Futures		568		—		—		568


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 31, 2015


4. Fair Valuation (Continued)
				Level 2 - Other
		Level 1 - Quoted		Significant Observable				Level 3 - Significant
Fund		Prices			Inputs			Unobservable Inputs		Totals (Level 1,2,3)

Inflation Protection Fund (Continued)
Liabilities
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(4,184	)	$	—	$	(4,184	)
Written Options		—			(1,558	)		—		(1,558	)
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—		$	(778	)	$	—	$	(778	)
Futures		(1,738	)		—			—		(1,738	)
Interest Rate Swaps		—			(286	)		—		(286	)
Interest Rate Swaptions		—			(2,999	)		—		(2,999	)
Options		(118	)		—			—		(118	)

International Emerging Markets Fund
Common Stocks
Basic Materials	$	4,811		$	38,887		$	—	$	43,698
Communications		33,620			135,058			—		168,678
Consumer, Cyclical		16,334			138,506			—		154,840
Consumer, Non-cyclical		54,663			60,762			—		115,425
Diversified		—			14,836			—		14,836
Energy		29,510			57,161			—		86,671
Financial		33,424			237,229			—		270,653
Industrial		33,765			80,102			—		113,867
Technology		19,341			115,830			—		135,171
Utilities		—			57,060			—		57,060
Investment Companies*		10,672			—			—		10,672
Preferred Stocks
Communications		—			690			—		690
Financial		—			11,218			—		11,218
Total investments in securities $		236,140		$	947,339		$	—	$	1,183,479

International Fund I
Common Stocks
Basic Materials	$	—		$	24,791		$	—	$	24,791
Communications		—			16,129			—		16,129
Consumer, Cyclical		14,710			77,036			—		91,746
Consumer, Non-cyclical		7,821			38,893			—		46,714
Financial		971			68,532			—		69,503
Industrial		2,267			49,731			—		51,998
Technology		22,732			35,092			—		57,824
Utilities		—			6,524			—		6,524
Investment Companies*		13,480			—			—		13,480
Total investments in securities $		61,981		$	316,728		$	—	$	378,709
Assets
Equity Contracts**
Futures	$	1,003		$	—		$	—	$	1,003

LargeCap Growth Fund
Common Stocks*	$	2,815,042		$	—		$	—	$	2,815,042
Investment Companies*		64,289			—			—		64,289
Total investments in securities $		2,879,331		$	—		$	—	$	2,879,331

LargeCap Growth Fund I
Common Stocks
Basic Materials	$	127,818		$	—		$	—	$	127,818
Communications		1,434,974			—			1,694		1,436,668
Consumer, Cyclical		967,198			—			—		967,198
Consumer, Non-cyclical		2,051,597			—			—		2,051,597
Diversified		78			—			—		78
Energy		101,722			—			—		101,722
Financial		642,342			—			—		642,342
Industrial		673,551			—			—		673,551
Technology		1,079,958			—			—		1,079,958
Utilities		371			—			—		371
Convertible Preferred Stocks
Communications		—			2,733			25,477		28,210
Investment Companies*		245,347			—			—		245,347
Preferred Stocks
Communications		—			—			4,970		4,970
Total investments in securities $		7,324,956		$	2,733		$	32,141	$	7,359,830
Assets
Equity Contracts**
Futures	$	12,366		$	—		$	—	$	12,366


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 31, 2015


4. Fair Valuation (Continued)
			Level 2 - Other
		Level 1 - Quoted	Significant Observable			Level 3 - Significant
Fund		Prices		Inputs		Unobservable Inputs		Totals (Level 1,2,3)

LargeCap S&P 500 Index Fund
Common Stocks*	$	4,823,917	$	—	$	—	$	4,823,917
Investment Companies*		88,906		—		—		88,906
	Total investments in securities $	4,912,823	$	—	$	—	$	4,912,823
Assets
Equity Contracts**
Futures	$	4,752	$	—	$	—	$	4,752

LargeCap Value Fund
Common Stocks*	$	2,470,123	$	—	$	—	$	2,470,123
Investment Companies*		15,720		—		—		15,720
	Total investments in securities $	2,485,843	$	—	$	—	$	2,485,843

MidCap Fund
Common Stocks*	$	11,124,326	$	—	$	—	$	11,124,326
Investment Companies*		9,363		—		—		9,363
	Total investments in securities $	11,133,689	$	—	$	—	$	11,133,689

MidCap Value Fund III
Common Stocks*	$	996,297	$	—	$	—	$	996,297
Investment Companies*		57,620		—		—		57,620
	Total investments in securities $	1,053,917	$	—	$	—	$	1,053,917
Assets
Equity Contracts**
Futures	$	1,503	$	—	$	—	$	1,503

Money Market Fund
Bonds*	$	—	$	102,338	$	—	$	102,338
Certificate of Deposit*		—		28,500		—		28,500
Commercial Paper*		—		698,520		—		698,520
Investment Companies*		51,270		—		—		51,270
Municipal Bonds*		—		52,602		—		52,602
Repurchase Agreements*		—		70,200		—		70,200
	Total investments in securities $	51,270	$	952,160	$	—	$	1,003,430

Principal Capital Appreciation Fund
Common Stocks*	$	2,598,528	$	—	$	—	$	2,598,528
Investment Companies*		49,197		—		—		49,197
	Total investments in securities $	2,647,725	$	—	$	—	$	2,647,725

Real Estate Securities Fund
Common Stocks*	$	2,309,231	$	—	$	—	$	2,309,231
Investment Companies*		59,842		—		—		59,842
	Total investments in securities $	2,369,073	$	—	$	—	$	2,369,073

Short-Term Income Fund
Bonds*	$	—	$	2,800,123	$	10,752	$	2,810,875
Investment Companies*		4,786		—		—		4,786
U.S. Government & Government Agency Obligations*		—		1,327		—		1,327
	Total investments in securities $	4,786	$	2,801,450	$	10,752	$	2,816,988

SmallCap Fund
Common Stocks
Communications	$	29,318	$	—	$	—	$	29,318
Consumer, Cyclical		94,778		—		—		94,778
Consumer, Non-cyclical		128,582		61		—		128,643
Energy		18,701		—		—		18,701
Financial		156,391		—		—		156,391
Industrial		56,521		—		—		56,521
Technology		73,393		—		—		73,393
Utilities		18,374		—		—		18,374
Investment Companies*		14,949		—		—		14,949
	Total investments in securities $	591,007	$	61	$	—	$	591,068
Assets
Equity Contracts**
Futures	$	13	$	—	$	—	$	13

*For additional detail regarding sector classifications, please see the Schedule of Investments.

**Exchange cleared swaps, futures, and foreign currency contracts are valued at the unrealized appreciation/(depreciation) of the instrument.

Certain detailed information is provided for those Funds with significant investments in Level 3 securities. Quantitative information about the significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy is as follows (amounts in thousands):

The changes in investments measured at fair value for which Level 3 inputs have been used to determine fair value are as follows (amounts shown in thousands):

*Securities are transferred into Level 3 for a variety of reasons including, but not limited to: 1. Securities where trading has been halted 2. Securities that have certain restrictions on trading 3. Instances in which a security is not priced by a pricing services

**Securities are transferred out of Level 3 for a variety of reasons including, but not limited to: 1. Securities where trading resumes 2. Securities where trading restrictions have expired 3. Instances in which a price becomes available from a pricing service

At the end of the period, there were no other Funds which had a significant Level 3 balance. During the period, there were no significant purchases, sales, or transfers into or out of Level 3, except as noted above.

Management Services. The Funds have agreed to pay investment advisory and management fees to the Manager (wholly owned by Principal Financial Services, Inc.) computed at an annual percentage rate of each of the Funds’ 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 rates used in this calculation for the Funds are as follows:


																						Net Assets of Fund (in
					Net Assets of Fund (in billions)																	billions)

					First $1			Over $ 1														First $2		Over $2
California Municipal Fund					.45	%				.40	%	Government & High Quality Bond Fund										.50	%	.45	%

		Net Assets of Fund (in millions)																	Net Assets of Fund
																			First			Next
		First			Next			Over										$	500		$	500		Over $1
	$	200		$	300		$	500											million			million		billion
Short-Term Income Fund		.50	%		.45	%		.40			%	Principal Capital Appreciation Fund							.625	%		.50	%	.375	%

		Net Assets of Fund (in millions)																	Net Assets of Fund (in billions)
		First						Over
	$	250					$	250											First $2			Next $1		Over $3
High Yield Fund		.625	%					.50	%			Income Fund							.50	%		.44	%	.43	%

										Net Assets of Funds
		First						Next				Next		Next		Next $1			Over $3
		$500 million						$500 million				$500 million		$500 million		billion			billion
Core Plus Bond Fund					.55	%		.53	%			.51	%	.50	%	.48	%		.45	%
Diversified International Fund					.90			.88				.86		.85		.83			.80
Global Diversified Income Fund					.80			.78				.76		.75		.73			.70
Global Real Estate Securities Fund					.90			.88				.86		.85		.84			.83
High Yield Fund I					.65			.63				.61		.60		.59			.58
International Emerging Markets Fund					1.20			1.18				1.16		1.15		1.14			1.13
International Fund I					.90			.88				.86		.85		.84			.83
LargeCap Growth Fund I					.66			.64				.62		.61		.60			.59
Large Cap Value Fund					.45			.43				.41		.40		.39			.38
MidCap Fund					.65			.63				.61		.60		.59			.58
Money Market Fund					.40			.39				.38		.37		.36			.35
Real Estate Securities Fund					.85			.83				.81		.80		.79			.78
SmallCap Value Fund II					1.00			.98				.96		.95		.94			.93

					Net Assets of Fund
		First			Next
	$	500			$500			Next $1				Next $1		Over $3
		million			million			billion				billion		billion
LargeCap Growth Fund		.68	%		.65	%		.62	%	.58			%	.55	%

		Net Assets of Fund (in millions)
		First			Next			Over
	$	250		$	250		$	500
Equity Income Fund		.60	%		.55	%		.50	%


					All Net Assets
LargeCap S&P 500 Index Fund					.15	%

In addition to the management fee, R-1, R-2, R-3, R-4, and R-5 classes of shares of the Funds pay the Manager a service fee and an administrative service fee computed at an annual percentage rate of each class’s average daily net assets. The annual rates for the service fee are .25%, .25%, .25%, .25%, and .25% and the annual rates for the administrative service fee are .28%, .20%, .07%, .03%, and .01% for R-1, R-2, R-3, R-4, and R-5, respectively. Class A, Class C, Class P, and Institutional shares of the Funds reimburse Principal Shareholder Services, Inc. (the “Transfer Agent”) (wholly owned by the Manager) for transfer agent services. Class J shares pays Principal Shareholder Services, Inc. a fee for the services provided in an amount that includes a profit.

The Manager has contractually agreed to limit the expenses (excluding interest the Funds incur in connection with investments they make) 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 operating expense limits are as follows:


			Period from November 1, 2014 through October 31, 2015
	Class A		Class C		Class J	Institutional		Expiration

California Municipal Fund	N/A		N/A		N/A	.60	%*	February 29, 2016
Core Plus Bond Fund	.88	%	1.75	%	N/A	N/A		February 29, 2016
Diversified International Fund	N/A		2.08		N/A	N/A		February 29, 2016
Global Real Estate Securities Fund	1.45	**	2.20		N/A	1.00	**	February 29, 2016
Government & High Quality Bond Fund	.88		1.63		1.00%**	N/A		February 29, 2016
High Yield Fund	N/A		N/A		N/A	.61		February 28, 2015
High Yield Fund I	1.05		N/A		N/A	N/A		February 29, 2016
Income Fund	N/A		N/A		1.10	N/A		February 28, 2015
Inflation Protection Fund	.90		1.65		1.15	N/A		February 29, 2016
International Emerging Markets Fund	1.75		2.80		N/A	N/A		February 29, 2016
International Fund I	1.45		N/A		N/A	1.00		February 29, 2016
LargeCap Growth Fund I	1.25		N/A		N/A	N/A		February 29, 2016
LargeCap S&P 500 Index Fund	N/A		1.30		N/A	N/A		February 29, 2016
LargeCap Value Fund	N/A		1.70		N/A	N/A		February 29, 2016
MidCap Value Fund III	1.30		N/A		N/A	.736	**	February 29, 2016
Money Market Fund	N/A		1.79		N/A	N/A		February 29, 2016
Principal Capital Appreciation Fund	N/A		1.82		N/A	N/A		February 28, 2015
Real Estate Securities Fund	N/A		2.20		N/A	N/A		February 29, 2016
SmallCap Fund	1.35	^	2.08		N/A	.80		February 29, 2016
SmallCap Value Fund II	1.45		N/A		N/A	N/A		February 29, 2016
Tax-Exempt Bond Fund	N/A		1.60		N/A	.60	^^	February 29, 2016

In addition, the Manager has contractually agreed to limit certain of the Funds’ management and investment advisory fees through the period ending February 29, 2016. The expense limit will reduce the Fund’s management and investment advisory fees by the following amounts:

The Manager has also voluntarily agreed to limit Money Market Fund’s expenses for all classes of shares to the extent necessary to maintain a 0% yield. The voluntary expense limit may be terminated at any time.

In addition, the Manager has contractually agreed to limit Class P expenses other than management and investment advisory fees and distribution fees and, if necessary, pay expenses normally payable by the Fund, excluding interest expense, expenses related to fund investments, acquired fund fees and investments, and other extraordinary expenses, through the period ending February 29, 2016. The expense limit will maintain these expenses (expressed as a percent of average net assets on an annualized basis) not to exceed .20% for each of California Municipal Bond Fund, Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, Income Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap Value Fund, MidCap Fund, MidCap Value Fund III, Principal Capital Appreciation Fund, Real Estate Securities Fund, Short Term Income Fund, SmallCap Fund, SmallCap Value Fund II, and Tax-Exempt Bond Fund, respectively.

The Manager has voluntarily agreed to limit certain of the Fund’s expenses attributable to Class J shares of Core Plus Bond Fund and Short-Term Income Fund by paying, if necessary, expenses normally payable by the Fund, excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses. The expense limits will maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed .99% and 1.00%, respectively. The expense limits expired February 28, 2015.

Amounts owed to the Funds under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as expense reimbursement from Manager.

Distribution Fees. The Class A, Class C, Class J, R-1, R-2, R-3 and R-4 shares of the Funds bear distribution fees. The fee is computed at an annual rate of the average daily net assets attributable to each class of each of the Funds. Distribution fees are paid to Principal Funds Distributor, Inc. (“the Distributor”), 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 rates are .25%, 1.00%, .25%, .35%, .30%, .25% and .10% for, Class A, Class C, Class J, R-1, R-2, R-3 and R-4 classes of shares, respectively, except the following classes of shares:

The Distributor has voluntarily agreed to limit the distribution fees (expressed as a percent of average net assets on an annualized basis) attributable to Class J shares (with the exception of Money Market Fund). The limit will maintain the level of distribution fees not to exceed .15% for Class J shares. The voluntary expense limit may be terminated at any time.

The Distributor has voluntarily agreed to limit Money Market Fund’s distribution fees attributable to certain share classes of Money Market Fund. The limit will maintain the level of distribution fees not to exceed 0% for Class C and Class J shares. The voluntary expense limit may be terminated at any time.

The Distributor has voluntarily agreed to limit the distribution fees attributable to Class A shares of Government & High Quality Bond Fund. The limit will maintain the level of distribution fees not to exceed .15% for Class A shares. The limit may be terminated at any time.

Amounts owed to the Funds under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as expense reimbursement from Distributor.

Sales Charges. Principal Funds Distributor, Inc., as the principal distributor, receives proceeds of any CDSC on certain Class A, Class C, and Class J share redemptions. The charge for Class A shares is 1.00% (.25% for the LargeCap S&P 500 Index Fund) of the lesser of current market value or the cost of shares redeemed within 12 months of purchase that were originally sold without a sales charge. The charge for Class C shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 12 months of purchase. The charge for Class J shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 18 months of purchase. Principal Funds Distributor, Inc. also retains sales charges on sales of Class A shares based on declining rates which begin at 1.50% for LargeCap S&P 500 Index Fund, 2.25% for Government & High Quality Bond Fund, Income Fund and Short Term Income Fund, 3.75% for California Municipal Fund, Core Plus Bond Fund, Global Diversified Income Fund, High Yield Fund, High Yield Fund I, Inflation Protection Fund, and Tax-Exempt Bond Fund, and 5.50% for all other Funds (except Money Market Fund which does not carry a sales charge). The aggregate amounts of these charges retained by Principal Funds Distributor, Inc. for the year ended October 31, 2015, were as follows (in thousands):

Affiliated Ownership. At October 31, 2015, Principal Life Insurance Company (an affiliate of the Manager), the Manager, Principal Funds Distributor, Inc., Princor Financial Services Corporation, Collective Investment Trusts sponsored by Principal Trust Company, benefit plans and separate accounts sponsored on behalf of Principal Life Insurance Company, and other affiliated entities owned shares of the Funds as follows (amounts in thousands):

Affiliated Brokerage Commissions. With respect to Global Diversified Income Fund, $49,000 of brokerage commission was paid to Spectrum Asset Management, Inc., a member of the Principal Financial Group. The other Funds did not pay brokerage commissions to any member of the Principal Financial Group during the year ended October 31, 2015.

The following table reflects the conversion of Class B shares into Class A shares (reflected in the statement of changes in net assets as Class B shares and dollars redeemed and Class A dollars sold) for the year ended October 31, 2015 (amounts in thousands).

For the year ended October 31, 2015, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and U.S. government securities) by the Funds were as follows (amounts shown in thousands):

In addition Global Diversified Income Fund had $719,682,000 of covers on securities sold short and $705,007,000 of securities sold short.

For the year ended October 31, 2015, 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 shown in thousands):

The following funds had in-kind-redemptions during the year ended October 31, 2015. The realized gain is included in net realized gain (loss) from investment transactions on the statements of operations. The in-kind-redemptions resulted in a distribution of securities with values and realized gains as follows (amounts in thousands):

Distributions to Shareholders. The federal income tax character of distributions paid for the years ended October 31, 2015 and October 31, 2014 were as follows (amounts in thousands):


										Long-Term
		Ordinary Income				Tax-Exempt Income*				Capital Gain^		Return of Capital		Section 1250 Gain#
		2015		2014		2015		2014		2015	2014	2015	2014	2015	2014
California Municipal Fund	$	160	$	15	$	8,745	$	7,608	$	— $	— $	— $	— $	— $	—
Core Plus Bond Fund		110,080		73,012		—		—		—	—	—	—	—	—
Diversified International Fund		78,901		95,806		—		—		—	—	—	—	—	—
Equity Income Fund		126,046		120,648		—		—		—	—	—	—	—	—
Global Diversified Income Fund		540,658		363,272		—		—		171,142	—	—	—	—	—
Global Real Estate Securities Fund		76,290		69,953		—		—		11,740	22,785	—	—	—	—
Government & High Quality Bond Fund		44,238		51,206		—		—		—	—	—	230	—	—
High Yield Fund		221,037		266,666		—		—		23,779	58,799	—	—	—	—
High Yield Fund I		72,862		100,811		—		—		9,911	20,365	—	—	—	—
Income Fund		100,635		97,957		—		—		—	—	—	—	—	—
Inflation Protection Fund		17,061		1,736		—		—		—	12,742	—	—	—	—
International Emerging Markets Fund		31,011		14,005		—		—		—	—	—	—	—	—
International Fund I		7,847		9,947		—		—		—	—	—	—	—	—
LargeCap Growth Fund		4,548		8,173		—		—		354,865	321,833	—	—	—	—
LargeCap Growth Fund I		85,471		38,663		—		—		640,765	390,817	—	—	—	—
LargeCap S&P 500 Index Fund		71,587		58,505		—		—		—	—	—	—	—	—
LargeCap Value Fund		225,546		116,854		—		—		181,975	210,811	—	—	—	—
MidCap Fund		29,212		35,728		—		—		441,399	134,118	—	—	—	—
MidCap Value Fund III		37,100		14,298		—		—		43,485	16,382	—	—	—	—
Principal Capital Appreciation Fund		27,603		22,458		—		—		93,647	48,623	—	—	—	—
Real Estate Securities Fund		30,710		24,725		—		—		18,261	187,482	—	—	2,200	—
Short-Term Income Fund		41,040		32,788		—		—		630	979	—	—	—	—
SmallCap Fund		9,561		3,046		—		—		48,352	32,756	—	—	—	—
SmallCap Value Fund II		27,593		6,780		—		—		112,817	98,993	—	—	—	—
Tax-Exempt Bond Fund		183		17		9,440		8,794		—	—	—	—	—	—

*The funds designate these distributions as exempt interest per IRC Sec. 852(b)(5).

^ The funds designate these distributions as long-term capital gain dividends per IRC 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%

For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.

Distributable Earnings. As of October 31, 2015, the components of distributable earnings on a federal tax basis were as follows (amounts in thousands):


																		Total
		Undistributed		Undistributed		Undistributed						Net Unrealized			Other			Accumulated
		Ordinary		Tax-Exempt		Long-Term			Accumulated			Appreciation			Temporary			Earnings
		Income		Income		Capital Gains			Losses			(Depreciation)			Differences*			(Deficit)
California Municipal Fund	$	—	$	—	$	—		$	(43,872	)	$	17,523		$	—		$	(26,349	)
Core Plus Bond Fund		1,473		—		—			(125,688	)		(38,998	)		(571	)		(163,784	)
Diversified International Fund		83,148		—		—			(446,671	)		515,371			—			151,848
Equity Income Fund		10,820		—		—			(109	)		1,644,854			—			1,655,565
Global Diversified Income Fund		53,012		—		—			(67,840	)		(253,689	)		(1,782	)		(270,299	)
Global Real Estate Securities Fund		34,196		—		66,932			(517	)		233,961			—			334,572
Government & High Quality Bond Fund		1,783		—		—			(59,392	)		(6,338	)		—			(63,947	)
High Yield Fund		8,796		—		—			(11,106	)		(225,575	)		(2,479	)		(230,364	)
High Yield Fund I		851		—		—			(19,758	)		(48,574	)		(407	)		(67,888	)
Income Fund		6,036		—		—			(33,623	)		1,452			—			(26,135	)
Inflation Protection Fund		13,457		—		—			(18,838	)		(60,431	)		(2,946	)		(68,758	)
International Emerging Markets Fund		7,158		—		—			(117,288	)		(44,639	)		—			(154,769	)
International Fund I		2,852		—		—			(313,953	)		35,471			—			(275,630	)
LargeCap Growth Fund		3,505		—		342,428			—			708,988			—			1,054,921
LargeCap Growth Fund I		1,122		—		978,309			—			1,782,258			—			2,761,689
LargeCap S&P 500 Index Fund		62,336		—		38,987			(17,236	)		1,600,515			—			1,684,602
LargeCap Value Fund		48,816		—		257,967			—			207,085			—			513,868
MidCap Fund		—		—		701,830			—			2,243,541			—			2,945,371
MidCap Value Fund III		8,971		—		34,690			—			82,703			—			126,364
Money Market Fund		—		—		—			(38,446	)		—			—			(38,446	)
Principal Capital Appreciation Fund		27,806		—		130,012			(9,104	)		1,159,082			—			1,307,796
Real Estate Securities Fund		11,577		—		122,635	^		—			574,404			—			708,616
Short-Term Income Fund		3,856		—		—			(19,498	)		(2,421	)		(682	)		(18,745	)
SmallCap Fund		—		—		25,436			(6,500	)		96,111			—			115,047
SmallCap Value Fund II		21,271		—		157,670			—			115,446			—			294,387
Tax-Exempt Bond Fund		—		43		—			(21,757	)		19,024			—			(2,690	)

^ Undistributed Long-Term Capital Gain reported includes $5,451,000 of Undistributed 1250 Capital Gains.

Distributable earnings reflect certain limitations imposed by Sections 381-384 of the Internal Revenue Code.

Capital Loss Carryforwards. Capital loss carryforwards are losses that can be used to offset future capital gains of the Funds. At October 31, 2015, the Funds had approximate net capital loss carryforwards as follows (amounts in thousands):


			Net Capital Loss Carryforward Expiring In:			No Expiration
						Short-	Long-		Annual
		2016	2017	2018	2019	Term	Term	Total	Limitations*
California Municipal Fund	$	10,723	$ 21,987	$3,189	$6,663	$568	$742	$43,872	$—
Core Plus Bond Fund		—	104,898	—	20,018	—	772	125,688	—
Diversified International Fund		38,411	372,959	—	—	35,301	—	446,671	38,411
Equity Income Fund		—	—	—	109	—	—	109	—
Global Diversified Income Fund		—	—	—	—	67,840	—	67,840	—
Global Real Estate Securities Fund		—	400	117	—	—	—	517	200
Government & High Quality Bond Fund		55,497	2,385	—	—	194	1,316	59,392	—
High Yield Fund		—	—	—	—	6,012	5,094	11,106	—
High Yield Fund I		—	—	—	—	11,218	8,540	19,758	—
Income Fund		—	11,616	8,587	13,420	—	—	33,623	—
Inflation Protection Fund		—	—	—	—	4,198	14,640	18,838	—
International Emerging Markets Fund		—	68,739	—	—	48,549	—	117,288	—
International Fund I		21,578	272,451	—	—	15,519	4,405	313,953	—
LargeCap S&P 500 Index Fund		17,236	—	—	—	—	—	17,236	—
Money Market Fund		35,477	2,969	—	—	—	—	38,446	5,612
Principal Capital Appreciation Fund		9,104	—	—	—	—	—	9,104	9,104
Short-Term Income Fund		3,950	15,548	—	—	—	—	19,498	5,314
SmallCap Fund		5,909	—	—	—	—	—	5,909	5,909
Tax-Exempt Bond Fund		3,668	8,745	3,432	2,371	3,504	37	21,757	—

*In accordance with Sections 381-384 of the Internal Revenue Code, a portion of certain Fund’s losses have been subjected to an annual limitation.

Capital losses generated in taxable years beginning after the enactment date of the Regulated Investment Company Modernization Act of 2010, December 22, 2010, will be carried forward with no expiration and with the character of the loss retained. These capital losses must be fully utilized before the pre-enactment capital loss carryforwards listed in the table above.

As of October 31, 2015, the following Funds had expired and utilized capital loss carryforwards as follows (amounts in thousands):

Late-Year Losses. A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. At October 31, 2015, SmallCap Fund had an approximate late-year ordinary loss of $591,000.

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 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 Statement of Changes in Net Assets as from net investment income, from net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2015, the Funds recorded reclassifications as follows (amounts in thousands):


		Accumulated			Accumulated
		Undistributed Net			Net Realized Gain
		Investment Income			on Investments			Paid in Capital
California Municipal Fund	$	16		$	380		$	(396	)
Core Plus Bond Fund		4,366			(1,254	)		(3,112	)
Diversified International Fund		284			38,127			(38,411	)
Equity Income Fund		(19,637	)		28,300			(8,663	)
Global Diversified Income Fund		(3,317	)		3,405			(88	)
Global Real Estate Securities Fund		29,439			(32,356	)		2,917
Government & High Quality Bond Fund		8,999			(5,852	)		(3,147	)
High Yield Fund		6,342			(6,342	)		—
High Yield Fund I		171			(171	)		—
Income Fund		9,216			(9,216	)		—
Inflation Protection Fund		7,147			(7,147	)		—
International Emerging Markets Fund		(2,580	)		2,580			—
International Fund I		(650	)		650			—
LargeCap Growth Fund		(336	)		336			—
LargeCap Growth Fund I		2,272			(2,272	)		—
LargeCap S&P 500 Index Fund		(350	)		(54,192	)		54,542
LargeCap Value Fund		(285	)		285			—
MidCap Fund		(1,171	)		1,171			—
MidCap Value Fund III		(138	)		(11,198	)		11,336
Money Market Fund		—			2,773			(2,773	)
Principal Capital Appreciation Fund		(69	)		(2,379	)		2,448
Real Estate Securities Fund		(2,798	)		—			2,798
Short-Term Income Fund		1			(1	)		—
SmallCap Fund		(32	)		21			11
SmallCap Value Fund II		859			(858	)		(1	)
Tax-Exempt Bond Fund		(55	)		55			—

Federal Income Tax Basis. At October 31, 2015, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the Funds were as follows (amounts in thousands):


		Unrealized		Unrealized			Net Unrealized			Cost for Federal
		Appreciation		(Depreciation)			Appreciation (Depreciation)			Income Tax Purposes
California Municipal Fund*	$	17,713	$	(202	)	$	17,511		$	197,655
Core Plus Bond Fund		39,580		(78,579	)		(38,999	)		4,482,266
Diversified International Fund		814,390		(297,939	)		516,451			5,600,266
Equity Income Fund		1,853,245		(208,392	)		1,644,853			3,833,050
Global Diversified Income Fund		341,132		(588,767	)		(247,635	)		11,463,848
Global Real Estate Securities Fund		329,033		(95,052	)		233,981			2,693,614
Government & High Quality Bond Fund		24,859		(31,197	)		(6,338	)		1,578,748
High Yield Fund		64,818		(290,375	)		(225,557	)		3,804,209
High Yield Fund I		12,496		(61,069	)		(48,573	)		913,634
Income Fund		81,566		(80,114	)		1,452			3,123,999
Inflation Protection Fund		6,027		(66,781	)		(60,754	)		1,703,029
International Emerging Markets Fund		71,111		(115,502	)		(44,391	)		1,227,870
International Fund I		47,148		(11,521	)		35,627			343,082
LargeCap Growth Fund		755,383		(46,395	)		708,988			2,170,343
LargeCap Growth Fund I		1,940,878		(158,620	)		1,782,258			5,577,572
LargeCap S&P 500 Index Fund		1,743,733		(143,218	)		1,600,515			3,312,308
LargeCap Value Fund		255,656		(48,571	)		207,085			2,278,758
MidCap Fund		2,675,145		(431,604	)		2,243,541			8,890,148
MidCap Value Fund III		142,088		(59,385	)		82,703			971,214
Money Market Fund		—		—			—			1,003,430
Principal Capital Appreciation Fund		1,187,546		(28,464	)		1,159,082			1,488,643
Real Estate Securities Fund		609,279		(34,876	)		574,403			1,794,670
Short-Term Income Fund		15,570		(17,991	)		(2,421	)		2,819,409
SmallCap Fund		124,044		(27,934	)		96,110			494,958
SmallCap Value Fund II		212,111		(96,665	)		115,446			1,203,144
Tax-Exempt Bond Fund*		19,975		(951	)		19,024			227,824

*The Fund holds floating rate securities which are accounted for differently for GAAP vs. federal income tax purposes. This causes a difference in cost basis and fair market value of investments for tax and GAAP purposes.

Management has evaluated events and transactions that have occurred through the date the financial statements were issued that would merit recognition or disclosure in the financial statements. There were no items requiring adjustment of the financial statements or additional disclosure.


Schedule of Investments
California Municipal Fund
October 31, 2015



		Principal					Principal
MUNICIPAL BONDS - 100.66%		Amount (000's) Value (000's)			MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)

California - 99.83%					California (continued)
Abag Finance Authority for Nonprofit Corps					Carson Redevelopment Agency Successor
5.00%, 08/01/2043	$	1,500	$	1,674	Agency (credit support from NATL)
Alameda Community Improvement					5.50%, 10/01/2016^(a)	$	1,000	$	1,044
Commission Successor Agency (credit					City of Alhambra CA (credit support from
support from BAM)					NATL)
5.00%, 09/01/2031^(a)		1,000		1,141	6.13%, 09/02/2018^(a)		1,715		1,742
Alameda Unified School District-Alameda					City of Bakersfield CA Wastewater
County/CA					Revenue (credit support from AGM)
5.00%, 08/01/2032		1,795		2,095	5.00%, 09/15/2032^(a)		2,000		2,167
Alum Rock Union Elementary School					City of Compton CA
District					2.20%, 06/01/2016		1,000		1,000
5.25%, 08/01/2043		1,000		1,129	City of Compton CA Water Revenue
Anaheim Public Financing Authority					6.00%, 08/01/2039		1,250		1,321
5.25%, 10/01/2034		1,000		1,116	City of Irvine CA
Association of Bay Area Governments (credit					5.00%, 09/01/2049		1,000		1,065
support from XLCA)					City of Los Angeles Department of Airports
5.25%, 09/01/2029^(a)		130		130	5.13%, 05/15/2033		1,230		1,367
Baldwin Park Financing Authority					City of San Francisco CA Public Utilities
4.63%, 08/01/2016		395		402	Commission Water Revenue
Bay Area Toll Authority					5.00%, 11/01/2036		2,010		2,328
5.13%, 04/01/2039		3,000		3,429	City of Torrance CA
California Educational Facilities Authority					6.00%, 06/01/2022		1,000		1,017
5.00%, 01/01/2038^(b)		1,379		1,482	City of Turlock CA
5.00%, 10/01/2038^(b)		900		995	5.13%, 10/15/2031		1,000		1,089
5.00%, 01/01/2039^(b)		3,642		3,998	5.13%, 10/15/2037		1,000		1,089
5.25%, 10/01/2039^(b)		6,500		7,214	City of Vernon CA Electric System Revenue
5.38%, 04/01/2034		1,000		1,135	5.13%, 08/01/2021		515		571
California Health Facilities Financing					5.13%, 08/01/2021		1,485		1,644
Authority					Coachella Valley Unified School
5.00%, 02/01/2035		2,000		2,227	District/CA (credit support from AGM)
5.00%, 08/15/2043^(c)		600		675	0.00%, 08/01/2039^(a),(e)		7,800		2,742
5.75%, 09/01/2039		2,000		2,283	Dinuba Financing Authority
6.00%, 07/01/2039		2,000		2,283	5.38%, 09/01/2038		1,000		1,010
6.50%, 10/01/2038		15		17	Dinuba Redevelopment Agency (credit
6.50%, 10/01/2038		985		1,147	support from BAM)
California Infrastructure & Economic					5.00%, 09/01/2033^(a)		2,000		2,246
Development Bank (credit support from					East Bay Municipal Utility District Water
NATL ST INTERCEPT)					System Revenue
5.00%, 08/15/2018^(a)		500		502	5.00%, 06/01/2036		1,000		1,147
California Pollution Control Financing					El Monte Union High School District (credit
Authority					support from ASSURED GTY)
3.63%, 07/01/2027		500		503	5.50%, 06/01/2034^(a)		2,000		2,251
4.30%, 07/01/2040		1,500		1,522	Escondido Union High School District
5.00%, 07/01/2030^(d)		2,000		2,138	0.00%, 08/01/2041^(e)		1,000		325
5.00%, 07/01/2037^(d)		4,000		4,248	Fontana Redevelopment Agency (credit
California School Finance Authority					support from NATL)
5.00%, 07/01/2035^(d)		1,925		2,049	5.20%, 09/01/2030^(a)		1,000		1,002
California State Public Works Board					Foothill-De Anza Community College
5.00%, 11/01/2037		1,375		1,554	District
5.00%, 10/01/2039		4,500		5,094	5.00%, 08/01/2040		1,500		1,670
California State University					Golden State Tobacco Securitization Corp
5.25%, 11/01/2038		2,000		2,259	4.50%, 06/01/2027		5,565		5,437
California State University (credit support					5.75%, 06/01/2047		5,000		4,580
from AGM)					Indio Redevelopment Agency
5.00%, 11/01/2039^(a)		1,000		1,090	5.63%, 08/15/2035		1,355		1,456
California Statewide Communities					Inland Valley Development Agency
Development Authority					5.25%, 09/01/2037		1,000		1,118
5.00%, 10/01/2028		1,875		2,089	La Verne Public Financing Authority
5.25%, 12/01/2034		3,500		3,693	7.25%, 09/01/2026		800		802
7.25%, 11/15/2041^(d)		1,500		1,741	Lancaster Redevelopment Agency Successor
California Statewide Communities					Agency
Development Authority (credit support from					6.88%, 08/01/2039		545		663
CA MTG INS)					6.88%, 08/01/2039		455		522
6.25%, 08/15/2028^(a)		2,250		2,590	Los Angeles County Public Works Financing
California Statewide Communities					Authority
Development Authority (credit support from					5.00%, 08/01/2042		1,400		1,564
FHA INS)					Los Angeles County Sanitation Districts
6.25%, 08/01/2024^(a)		800		933	Financing Authority
California Statewide Financing Authority					5.00%, 10/01/2035		4,500		5,175
6.00%, 05/01/2043		2,000		2,000	Los Angeles Department of Water
6.00%, 05/01/2043		1,550		1,550	5.38%, 07/01/2038		1,000		1,119


Schedule of Investments
California Municipal Fund
October 31, 2015



		Principal					Principal
MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)			MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)

California (continued)					California (continued)
Los Angeles Unified School District/CA					San Bernardino County Redevelopment
5.00%, 07/01/2029	$	2,000	$	2,264	Agency (credit support from ASSURED
Los Angeles Unified School					GTY)
District/CA (credit support from AGM)					5.00%, 09/01/2018^(a)	$	1,565	$	1,571
5.00%, 07/01/2032^(a)		1,000		1,063	San Diego Community College District
Marin Healthcare District					5.25%, 08/01/2033^(b)		1,950		2,226
5.00%, 08/01/2034^(c)		1,000		1,161	San Diego Public Facilities Financing
Merced Union High School District					Authority Water Revenue
0.00%, 08/01/2032^(e)		3,380		1,752	5.38%, 08/01/2034		2,000		2,281
Morongo Band of Mission Indians/The					San Diego Redevelopment Agency
6.50%, 03/01/2028^(d)		1,000		1,104	6.40%, 09/01/2019		1,000		1,004
Needles Public Utility Authority					San Francisco Bay Area Rapid Transit
6.50%, 02/01/2022		2,130		2,131	District
Norco Community Redevelopment Agency					5.00%, 07/01/2028		1,755		2,012
Successor Agency (credit support from BAM)					San Francisco City & County Redevelopment
5.00%, 03/01/2032^(a)		1,000		1,125	Agency
Norco Financing Authority (credit support					5.00%, 08/01/2044		1,500		1,574
from AGM)					6.50%, 08/01/2039		1,000		1,146
5.63%, 10/01/2034^(a)		1,000		1,129	San Joaquin Hills Transportation Corridor
Northern Inyo County Local Hospital District					Agency
5.00%, 12/01/2029		1,010		1,038	5.00%, 01/15/2034		2,500		2,696
Oakland Unified School District/Alameda					San Luis Obispo County Financing
County					Authority (credit support from AGM)
5.00%, 08/01/2040		3,000		3,296	5.00%, 08/01/2030^(a)		1,000		1,109
Ontario Redevelopment Financing					San Luis Obispo County Financing
Authority (credit support from AMBAC)					Authority (credit support from BAM)
5.50%, 08/01/2016^(a)		1,055		1,060	5.00%, 09/01/2037^(a)		1,000		1,125
Ontario Redevelopment Financing					Santa Clara County Financing Authority
Authority (credit support from NATL)					5.25%, 05/15/2036		2,000		2,179
5.25%, 08/01/2016^(a)		1,060		1,063	Santa Margarita Water District
Palm Desert Financing Authority (credit					5.00%, 09/01/2038		465		494
support from NATL)					Semitropic Improvement District
5.00%, 08/01/2022^(a)		1,280		1,288	5.00%, 12/01/2038		2,000		2,248
Pittsburg Unified School District					Southern California Public Power Authority
0.00%, 08/01/2036^(e)		1,365		558	5.00%, 11/01/2029		1,955		2,252
5.00%, 08/01/2043		2,900		3,198	5.25%, 07/01/2029		695		814
Pittsburg Unified School District (credit					5.25%, 07/01/2031		695		803
support from AGM)					State of California
5.50%, 08/01/2031^(a)		1,000		1,129	2.45%, 12/01/2031		1,000		1,001
Pomona Public Financing Authority (credit					5.00%, 02/01/2038		1,450		1,644
support from NATL)					5.00%, 04/01/2043		3,380		3,810
5.00%, 02/01/2021^(a)		5,000		5,012	5.25%, 11/01/2040		1,500		1,733
Pomona Unified School District (credit					5.75%, 04/01/2031		675		779
support from NATL)					6.00%, 03/01/2033		2,000		2,397
6.15%, 08/01/2030^(a)		1,000		1,203	6.00%, 04/01/2038		3,000		3,493
Port Commission of the City & County of San					State of California Department of Water
Francisco					Resources
4.00%, 03/01/2035		1,000		1,004	5.00%, 12/01/2028		1,615		1,792
Port of Los Angeles					5.00%, 12/01/2028		65		72
5.00%, 08/01/2032		1,740		1,973	Stockton East Water District (credit support
Poway Unified School District					from NATL)
0.00%, 08/01/2036^(e)		4,000		1,716	5.25%, 04/01/2022^(a)		1,780		1,783
Richmond Joint Powers Financing Authority					Stockton Unified School District (credit
6.25%, 07/01/2024		1,000		1,161	support from AGM)
Ripon Unified School District (credit support					5.00%, 08/01/2038^(a)		1,500		1,674
from BAM)					Tobacco Securitization Authority of Southern
0.00%, 08/01/2033^(a),(e)		1,110		477	California
Riverside Community Properties Development					5.13%, 06/01/2046		1,500		1,325
Inc					Tulare County Transportation Authority
6.00%, 10/15/2038		1,000		1,170	5.00%, 02/01/2029		1,000		1,167
Riverside County Transportation					Tustin Public Financing Authority
Commission					5.00%, 04/01/2041		1,000		1,095
5.00%, 06/01/2032		1,500		1,718	University of California
Rocklin Unified School District (credit					5.00%, 05/15/2044		1,000		1,126
support from NATL)					5.25%, 05/15/2039^(b)		2,513		2,831
0.00%, 08/01/2019^(a),(e)		1,360		1,127	5.25%, 05/15/2039^(b)		487		561
0.00%, 08/01/2020^(a),(e)		1,415		1,111	Walnut Energy Center Authority
0.00%, 08/01/2023^(a),(e)		1,225		819	5.00%, 01/01/2035		1,225		1,367
Salinas Valley Solid Waste Authority (credit					Western Municipal Water District Facilities
support from AGM)					Authority
5.50%, 08/01/2031^(a)		1,500		1,726	5.00%, 10/01/2034		1,700		1,904
							$		224,064


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



	INVESTMENT COMPANIES - 0.74%			Shares Held	Value (000			's)			Principal
									BONDS (continued)		Amount (000's) Value (000's)
	Publicly Traded Investment Fund - 0.74%
	Goldman Sachs Financial Square Funds -			31,460,179		$	31,460		Airlines (continued)
	Government Fund								American Airlines 2015-1 Class B Pass
									Through Trust
	TOTAL INVESTMENT COMPANIES				$		31,460		3.70%, 11/01/2024	$	270	$	265
	PREFERRED STOCKS - 0.52%			Shares Held	Value (000			's)	United Airlines 2014-1 Class A Pass Through
									Trust
	Banks - 0.42	%							4.00%, 10/11/2027		3,600		3,672
	Bank of America Corp 6.50%; Series Y ^(a)			35,000			921		United Airlines 2014-2 Class A Pass Through
	City National Corp/CA ^(a)			90,000			2,614		Trust
	CoBank ACB 6.20% ^(a)			35,000			3,593		3.75%, 03/03/2028		2,430		2,448
	Morgan Stanley ^(a)			180,000			4,662		US Airways 2001-1G Pass Through Trust
	State Street Corp 5.90%; Series D ^(a)			225,000			5,990		7.08%, 09/20/2022		203		219
					$		17,780		US Airways 2013-1 Class A Pass Through
	Diversified Financial Services - 0.03%								Trust
	Ally Financial Inc ^(a),(b)			806			821		3.95%, 05/15/2027		1,354		1,374
	RBS Capital Funding Trust V ^(a)			15,000			370				$		17,628
					$		1,191		Apparel - 0.12%
	Electric - 0.04%								NIKE Inc
	SCE Trust III ^(a)			65,000			1,811		3.88%, 11/01/2045		5,265		5,159


	Telecommunications - 0.03%								Automobile Asset Backed Securities - 6.45%
	Verizon Communications Inc			50,000			1,330		Ally Auto Receivables Trust 2014-2
									0.68%, 07/17/2017^(d)		2,490		2,490
									Ally Auto Receivables Trust 2014-3
	TOTAL PREFERRED STOCKS				$		22,112		0.81%, 09/15/2017^(d)		7,577		7,578

				Principal					Ally Auto Receivables Trust 2014-SN1
	BONDS - 64.55	%		Amount (000's)	Value (000			's)	0.39%, 10/20/2016^(d)		317		316
	Advertising - 0.02%								Ally Auto Receivables Trust 2014-SN2
	MDC Partners Inc								1.21%, 02/20/2019^(d)		7,300		7,305
	6.75%, 04/01/2020^(b)		$	885		$	900		AmeriCredit Automobile Receivables Trust
									2013-2
									0.65%, 12/08/2017		638		638
	Aerospace & Defense - 0.04%
	Air 2 US								AmeriCredit Automobile Receivables Trust
	8.03%, 10/01/2020^(b),(c)			202			217		2014-2
									0.47%, 10/10/2017^(d)		2,974		2,973
	8.63%, 10/01/2020^(b)			223			228
									2.18%, 06/08/2020		2,000		2,000
	Embraer Netherlands Finance BV								Americredit Automobile Receivables Trust
	5.05%, 06/15/2025			1,100			1,053		2014-4
					$		1,498		0.59%, 04/09/2018^(d)		8,934		8,937
	Agriculture - 0.74%								AmeriCredit Automobile Receivables Trust
	Altria Group Inc								2015-2
	2.85%, 08/09/2022			2,815			2,783		2.40%, 01/08/2021^(d)		7,850		7,867
	4.50%, 05/02/2043			1,475			1,433		ARI Fleet Lease Trust 2012-B
	9.95%, 11/10/2038			915			1,490		0.50%, 01/15/2021^(b),(d)		1,095		1,093
	BAT International Finance PLC								BMW Vehicle Lease Trust 2015-1
	2.75%, 06/15/2020^(b)			485			494		1.24%, 12/20/2017		5,515		5,523
	Philip Morris International Inc								Capital Auto Receivables Asset Trust 2013-1
	4.38%, 11/15/2041			1,355			1,342		0.79%, 06/20/2017		1,192		1,192
	Pinnacle Operating Corp								Capital Auto Receivables Asset Trust 2013-2
	9.00%, 11/15/2020^(b)			1,785			1,732		1.24%, 10/20/2017		4,221		4,224
	Reynolds American Inc								Capital Auto Receivables Asset Trust 2014-2
	3.25%, 06/12/2020			2,895			2,966		1.26%, 05/21/2018^(d)		4,000		4,000
	3.25%, 11/01/2022			6,290			6,258		Capital Auto Receivables Asset Trust 2015-2
	4.45%, 06/12/2025			6,935			7,237		0.59%, 10/20/2017^(d)		9,125		9,099
	5.70%, 08/15/2035			2,595			2,839		CarMax Auto Owner Trust 2014-4
	5.85%, 08/15/2045			2,455			2,723		1.25%, 11/15/2019		8,500		8,491
					$		31,297		CarMax Auto Owner Trust 2015-1
									0.88%, 03/15/2018^(d)		4,450		4,452
	Airlines - 0.41%								CarMax Auto Owner Trust 2015-2
	American Airlines 2013-1 Class B Pass								0.48%, 06/15/2018^(d)		10,000		9,985
	Through Trust								Chesapeake Funding LLC
	5.63%, 01/15/2021^(b)			1,367			1,383		0.61%, 03/07/2026^(b),(d)		17,017		16,967
	American Airlines 2013-2 Class A Pass								0.64%, 01/07/2025^(b),(d)		2,190		2,188
	Through Trust								1.44%, 04/07/2024^(b),(d)		2,079		2,079
	4.95%, 07/15/2024			1,727			1,850		Chrysler Capital Auto Receivables Trust 2014-
	American Airlines 2014-1 Class A Pass								B
	Through Trust								0.69%, 09/15/2017^(b),(d)		11,108		11,106
	3.70%, 04/01/2028			1,474			1,491		Drive Auto Receivables Trust 2015-A
	American Airlines 2015-1 Class A Pass								1.01%, 11/15/2017^(b),(d)		3,121		3,120
	Through Trust								Drive Auto Receivables Trust 2015-C
	3.38%, 11/01/2028			5,050			4,926		0.87%, 02/15/2018^(b),(d)		5,000		4,997


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal						Principal
BONDS (continued)	Amount (000's)			Value (000's)	BONDS (continued)			Amount (000's) Value (000's)

Automobile Asset Backed Securities (continued)					Automobile Manufacturers (continued)
Drive Auto Receivables Trust 2015-D					Fiat Chrysler Automobiles NV
1.07%, 06/15/2018^(b),(d)	$	10,920	$	10,921	4.50%, 04/15/2020		$	750	$	757
Enterprise Fleet Financing LLC					Ford Motor Co
1.59%, 02/22/2021^(b),(d)		3,500		3,488	7.40%, 11/01/2046			1,130		1,416
GM Financial Automobile Leasing Trust					Ford Motor Credit Co LLC
2014-1					2.60%, 11/04/2019			2,375		2,355
1.76%, 05/21/2018^(b)		5,110		5,124	8.00%, 12/15/2016			11,315		12,105
1.99%, 05/21/2018^(b)		2,000		2,000	General Motors Co
GM Financial Automobile Leasing Trust					3.50%, 10/02/2018			10,120		10,288
2014-2					4.88%, 10/02/2023			5,810		6,095
1.96%, 03/20/2018^(b)		1,500		1,502	6.25%, 10/02/2043			530		585
2.43%, 03/20/2018^(b)		4,250		4,244	General Motors Financial Co Inc
Hertz Fleet Lease Funding LP					2.63%, 07/10/2017			3,695		3,716
0.60%, 04/10/2028^(b),(d)		5,483		5,467	3.10%, 01/15/2019			3,475		3,487
0.75%, 12/10/2027^(b),(d)		12,443		12,411	3.25%, 05/15/2018			4,655		4,712
Honda Auto Receivables 2015-3 Owner					3.45%, 04/10/2022			3,960		3,867
Trust					4.30%, 07/13/2025			2,610		2,656
0.92%, 11/20/2017		2,700		2,700	Hyundai Capital America
Mercedes Benz Auto Lease Trust 2015-B					2.40%, 10/30/2018^(b)			2,015		2,015
0.72%, 01/16/2018^(d)		4,500		4,500	Jaguar Land Rover Automotive PLC
Nissan Auto Receivables 2013-C Owner					3.50%, 03/15/2020^(b)			800		791
Trust					4.13%, 12/15/2018^(b)			540		553
0.67%, 08/15/2018^(d)		1,822		1,819	5.63%, 02/01/2023^(b)			3,065		3,157
Nissan Auto Receivables 2015-A Owner					Navistar International Corp
Trust					8.25%, 11/01/2021			2,575		2,008
1.05%, 10/15/2019^(d)		6,500		6,478	Nissan Motor Acceptance Corp
Santander Drive Auto Receivables Trust 2014-					0.88%, 03/03/2017^(b),(d)			3,000		2,995
1					Toyota Motor Credit Corp
2.36%, 04/15/2020		1,000		1,005	0.71%, 01/17/2019^(d)			1,320		1,309
Santander Drive Auto Receivables Trust 2014-					Volkswagen Group of America Finance LLC
2					0.77%, 11/20/2017^(b),(d)			10,000		9,548
0.80%, 04/16/2018^(d)		7,713		7,707	Volkswagen International Finance NV
Santander Drive Auto Receivables Trust 2014-					1.13%, 11/18/2016^(b)			1,625		1,600
4								$		104,769
0.52%, 01/16/2018^(d)		5,543		5,537
Santander Drive Auto Receivables Trust 2014-					Automobile Parts & Equipment - 0.22%
5					Dana Holding Corp
0.60%, 04/16/2018^(d)		8,150		8,144	5.38%, 09/15/2021			335		342
1.77%, 09/16/2019		4,000		4,011	5.50%, 12/15/2024			1,590		1,586
2.48%, 06/15/2020		4,000		4,012	6.00%, 09/15/2023			395		409
					6.75%, 02/15/2021			415		431
					Gestamp Funding Luxembourg SA
Santander Drive Auto Receivables Trust 2015-1					5.63%, 05/31/2020^(b)			200		205
0.91%, 07/16/2018^(d)		6,497		6,489
SunTrust Auto Receivables Trust 2015-1					Lear Corp
0.99%, 06/15/2018^(b),(d)		12,500		12,513	5.25%, 01/15/2025			2,220		2,264
					Nemak SAB de CV
Volkswagen Auto Lease Trust 2015-A					5.50%, 02/28/2023^(b)			1,500		1,534
0.51%, 06/20/2017^(d)		9,631		9,602
1.25%, 12/20/2017		14,540		14,494	Schaeffler Holding Finance BV
					6.75%, PIK 7.50%, 11/15/2022^(b),(e)			410		448

					ZF North America Capital Inc
Volkswagen Auto Loan Enhanced Trust 2014-1					4.00%, 04/29/2020^(b)			1,070		1,081
0.91%, 10/22/2018		2,265		2,253	4.50%, 04/29/2022^(b)			195		196
World Omni Auto Receivables Trust 2014-B					4.75%, 04/29/2025^(b)			800		785
1.14%, 01/15/2020		9,700		9,653
		$		274,694				$		9,281

Automobile Floor Plan Asset Backed Securities - 1.28%					Banks- 8.53	%
Ally Master Owner Trust					Abbey National Treasury Services PLC/United
0.65%, 04/15/2018^(d)		8,000		7,996	Kingdom
					0.74%, 09/29/2017^(d)			7,000		6,961
1.60%, 10/15/2019		8,000		8,021
GE Dealer Floorplan Master Note Trust					Associated Banc-Corp
0.57%, 07/20/2019^(d)		10,575		10,517	2.75%, 11/15/2019			1,965		1,978
0.59%, 04/20/2018^(d)		28,127		28,113	4.25%, 01/15/2025			7,610		7,689
		$		54,647	5.13%, 03/28/2016			5,055		5,118
					Banco Bilbao Vizcaya Argentaria SA
Automobile Manufacturers - 2.46%					3.00%, 10/20/2020			8,130		8,146
American Honda Finance Corp					Banco Nacional de Comercio Exterior SNC
2.45%, 09/24/2020		5,130		5,173	4.38%, 10/14/2025^(b)			1,500		1,508
Daimler Finance North America LLC					Banco Santander Mexico SA Institucion de
1.45%, 08/01/2016^(b)		2,005		2,006	Banca Multiple Grupo Financiero Santander
1.65%, 03/02/2018^(b)		5,725		5,691	4.13%, 11/09/2022^(b)			800		812
2.25%, 03/02/2020^(b)		3,390		3,354	Bank of America Corp
2.45%, 05/18/2020^(b)		5,480		5,476	3.95%, 04/21/2025			4,110		4,044
2.70%, 08/03/2020^(b)		7,050		7,054	4.20%, 08/26/2024			5,320		5,349


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Banks (continued)					Banks (continued)
Bank of America Corp (continued)					Morgan Stanley (continued)
4.25%, 10/22/2026	$	2,906	$	2,915	5.00%, 11/24/2025	$	11,920	$	12,755
4.75%, 04/21/2045		3,000		2,928	5.55%, 12/29/2049^(a),(d)		3,265		3,261
6.10%, 12/29/2049^(a),(d)		6,780		6,856	Nordea Bank AB
6.25%, 09/29/2049^(a),(d)		3,595		3,646	2.50%, 09/17/2020^(b)		7,365		7,402
Bank of New York Mellon Corp/The					4.88%, 05/13/2021^(b)		2,000		2,155
4.95%, 12/29/2049^(a),(d)		16,715		16,715	5.50%, 09/29/2049^(a),(b),(d)		2,230		2,190
Banque Centrale de Tunisie SA					PNC Bank NA
5.75%, 01/30/2025^(b)		1,150		1,078	6.00%, 12/07/2017		7,400		8,021
Barclays PLC					Popular Inc
8.25%, 12/29/2049^(a),(d)		3,800		4,046	7.00%, 07/01/2019		900		878
BBVA Banco Continental SA					Regions Bank/Birmingham AL
5.00%, 08/26/2022^(b)		975		1,026	2.25%, 09/14/2018		3,510		3,523
BBVA Bancomer SA/Texas					Royal Bank of Scotland Group PLC
6.75%, 09/30/2022^(b)		3,000		3,366	5.13%, 05/28/2024		410		420
BNP Paribas SA					7.50%, 12/29/2049^(a),(d)		910		942
4.38%, 09/28/2025^(b)		4,910		4,861	7.64%, 03/29/2049^(a),(d)		390		407
BPCE SA					Santander UK Group Holdings PLC
4.63%, 07/11/2024^(b)		5,550		5,528	4.75%, 09/15/2025^(b)		5,635		5,630
5.15%, 07/21/2024^(b)		1,250		1,290	Skandinaviska Enskilda Banken AB
CIT Group Inc					2.45%, 05/27/2020^(b)		3,500		3,517
3.88%, 02/19/2019		3,795		3,852	5.75%, 11/29/2049^(a),(d)		7,695		7,560
City National Corp/CA					Svenska Handelsbanken AB
5.25%, 09/15/2020		6,330		7,119	5.25%, 12/29/2049^(a),(d)		2,500		2,413
Compass Bank					UBS AG/Jersey
1.85%, 09/29/2017		2,675		2,664	7.25%, 02/22/2022^(d)		4,840		5,105
2.75%, 09/29/2019		4,550		4,514	UBS AG/Stamford CT
Cooperatieve Centrale Raiffeisen-					2.35%, 03/26/2020		3,575		3,576
Boerenleenbank BA/Netherlands					UBSGroup FundingJerseyLtd
4.38%, 08/04/2025		4,500		4,591	2.95%, 09/24/2020^(b)		4,290		4,292
4.63%, 12/01/2023		2,800		2,921	4.13%, 09/24/2025^(b)		5,505		5,529
5.25%, 08/04/2045		7,490		7,836	UBS Preferred Funding Trust V
5.75%, 12/01/2043		465		523	6.24%, 05/29/2049^(a)		2,459		2,490
11.00%, 12/29/2049 ^(a),(b),(d)		1,560		1,940	US Bank NA/Cincinnati OH
Deutsche Bank Capital Funding Trust VII					2.80%, 01/27/2025		3,690		3,592
5.63%, 01/29/2049^(a),(b),(d)		3,000		2,944	Wells Fargo & Co
Discover Bank/Greenwood DE					2.60%, 07/22/2020		2,520		2,542
2.60%, 11/13/2018		5,500		5,530	3.90%, 05/01/2045		25		23
Fifth Third Bank/Cincinnati OH					5.87%, 12/29/2049^(a),(d)		2,865		3,030
2.88%, 10/01/2021		3,125		3,121	5.90%, 12/29/2049^(a),(d)		2,075		2,127
First Horizon National Corp					Westpac Banking Corp
3.50%, 12/15/2020		4,600		4,584	0.66%, 05/19/2017^(d)		6,650		6,648
Goldman Sachs Group Inc/The							$		362,998
2.60%, 04/23/2020		2,590		2,601
3.85%, 07/08/2024		4,405		4,494	Beverages - 0.37%
4.25%, 10/21/2025		5,490		5,488	Ajecorp BV
4.75%, 10/21/2045		3,570		3,621	6.50%, 05/14/2022		1,100		558
5.15%, 05/22/2045		5,000		5,019	Anheuser-Busch Cos LLC
5.38%, 03/15/2020		2,415		2,697	5.60%, 03/01/2017		1,090		1,148
5.38%, 12/29/2049^(a),(d)		9,945		9,846	Anheuser-Busch InBev Worldwide Inc
5.95%, 01/15/2027		1,725		1,963	3.75%, 07/15/2042		2,210		1,875
6.75%, 10/01/2037		735		886	Coca-Cola Co/The
Huntington National Bank/The					2.88%, 10/27/2025		3,545		3,511
0.74%, 04/24/2017^(d)		12,100		12,024	Coca-Cola Icecek AS
					4.75%, 10/01/2018^(b)		2,050		2,131
2.88%, 08/20/2020		2,000		2,006
ING Bank NV					Constellation Brands Inc
1.02%, 10/01/2019^(b),(d)		3,000		2,976	3.75%, 05/01/2021		1,265		1,293
2.70%, 08/17/2020^(b)		10,235		10,351	3.88%, 11/15/2019		520		541
5.80%, 09/25/2023^(b)		4,425		4,865	4.25%, 05/01/2023		1,855		1,899
					Corp Lindley SA
Intesa Sanpaolo SpA					6.75%, 11/23/2021^(b)		700		773
3.13%, 01/15/2016		3,070		3,083
5.02%, 06/26/2024^(b)		10,415		10,432	6.75%, 11/23/2021		865		956
7.70%, 12/29/2049^(a),(b),(d)		2,610		2,639	Pernod Ricard SA
					5.75%, 04/07/2021^(b)		1,045		1,164
JPMorgan Chase & Co
4.50%, 01/24/2022		1,225		1,327			$		15,849
4.95%, 06/01/2045		3,540		3,580	Biotechnology - 0.94%
5.00%, 12/29/2049^(a),(d)		3,625		3,574
					Celgene Corp
Morgan Stanley					2.13%, 08/15/2018		815		821
1.75%, 02/25/2016		8,610		8,641	2.88%, 08/15/2020		3,375		3,396
2.38%, 07/23/2019		6,435		6,466	3.88%, 08/15/2025		8,315		8,337
4.00%, 07/23/2025		3,290		3,383	4.63%, 05/15/2044		665		636
4.30%, 01/27/2045		3,140		3,009	5.00%, 08/15/2045		2,670		2,679


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



	Principal							Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)

Biotechnology (continued)					Commercial Mortgage Backed Securities (continued)
Celgene Corp (continued)					Banc of America Commercial Mortgage Trust
5.25%, 08/15/2043	$	115	$	118	2015-UB	S7
Genzyme Corp					3.71%, 09/15/2048		$	2,000	$	2,085
5.00%, 06/15/2020		810		907	BCRR Trust 2009-1
Gilead Sciences Inc					5.86%, 07/17/2040^(b)			1,945		2,047
2.55%, 09/01/2020		8,045		8,122	CD 2006-CD3 Mortgage Trust
3.05%, 12/01/2016		840		860	5.62%, 10/15/2048			1,725		1,755
3.65%, 03/01/2026		8,985		9,084	CD 2007-CD4 Commercial Mortgage Trust
4.60%, 09/01/2035		2,095		2,127	5.37%, 12/11/2049			5,490		5,645
4.75%, 03/01/2046		2,325		2,352	CFCRE Commercial Mortgage Trust 2011-
4.80%, 04/01/2044		575		581	C2
		$		40,020	5.57%, 12/15/2047^(b),(d)			800		887
					Citigroup Commercial Mortgage Trust 2012-
Building Materials - 0.63%					GC8
Boise Cascade Co					4.29%, 09/10/2045^(b)			800		839
6.38%, 11/01/2020		390		404
Cemex SAB de CV					Citigroup Commercial Mortgage Trust 2015-
6.13%, 05/05/2025^(b)		650		616	GC27
					3.14%, 02/10/2048^(d)			5,000		4,964
7.25%, 01/15/2021^(b)		4,385		4,495
					3.57%, 02/10/2048^(d)			6,500		6,508
CRH America Inc
3.88%, 05/18/2025^(b)		2,320		2,328	Citigroup Commercial Mortgage Trust 2015-
5.13%, 05/18/2045^(b)		1,355		1,404	GC29
					3.19%, 04/10/2048^(d)			3,000		2,996
8.13%, 07/15/2018		3,425		3,958	4.16%, 04/10/2048^(d)			2,000		1,910
Martin Marietta Materials Inc
1.43%, 06/30/2017^(d)		9,280		9,217	COMM 2010-RR1
					5.54%, 12/11/2049^(b),(d)			900		933
4.25%, 07/02/2024		2,830		2,800	COMM 2013-CCRE11 Mortgage Trust
Norbord Inc					1.18%, 10/10/2046^(d)			59,326		3,856
5.38%, 12/01/2020^(b)		650		661
					4.72%, 10/10/2046			5,000		5,525
Vulcan Materials Co					COMM 2013-CCRE6 Mortgage Trust
4.50%, 04/01/2025		915		936	4.17%, 03/10/2046^(b),(d)			500		447
		$		26,819	COMM 2013-LC6 Mortgage Trust
					4.29%, 01/10/2046^(b),(d)			1,470		1,329
Chemicals - 0.56%
A Schulman Inc					COMM 2014-CCRE16 Mortgage Trust
6.88%, 06/01/2023^(b)		665		660	4.05%, 04/10/2047			600		643
					COMM 2014-CCRE17 Mortgage Trust
Agrium Inc					4.74%, 05/10/2047^(d)			1,850		1,895
3.38%, 03/15/2025		4,630		4,326
Aruba Investments Inc					COMM 2014-LC17 Mortgage Trust
8.75%, 02/15/2023^(b)		1,000		988	4.49%, 10/10/2047			5,000		5,254
					COMM 2014-UBS5 Mortgage Trust
Axiall Corp					1.10%, 09/10/2047^(d)			71,459		4,329
4.88%, 05/15/2023		1,700		1,616
Blue Cube Spinco Inc					COMM 2015-CCRE22 Mortgage Trust
9.75%, 10/15/2023^(b)		365		393	4.13%, 03/10/2048^(d)			1,750		1,668
CF Industries Inc					COMM 2015-PC1 Mortgage Trust
4.95%, 06/01/2043		1,350		1,259	4.29%, 07/10/2050^(d)			2,000		2,100
5.15%, 03/15/2034		1,595		1,572	Commercial Mortgage Pass Through
Consolidated Energy Finance SA					Certificates
6.75%, 10/15/2019^(b)		2,200		2,189	4.77%, 10/15/2045^(b),(d)			5,290		5,364
Cornerstone Chemical Co					Credit Suisse Commercial Mortgage Trust
9.38%, 03/15/2018^(b)		720		727	Series 2006-C3
Dow Chemical Co/The					5.82%, 06/15/2038^(d)			85		85
4.38%, 11/15/2042		515		463	Credit Suisse Commercial Mortgage Trust
Eagle Spinco Inc					Series 2006-C5
4.63%, 02/15/2021		2,280		2,220	0.72%, 12/15/2039^(d)			13,341		63
Mexichem SAB de CV					Credit Suisse Commercial Mortgage Trust
5.88%, 09/17/2044		1,300		1,162	Series 2007-C3
Monsanto Co					5.70%, 06/15/2039^(d)			1,577		1,642
3.95%, 04/15/2045		2,780		2,347	Credit Suisse First Boston Mortgage Securities
4.40%, 07/15/2044		802		715	Corp
NOVA Chemicals Corp					0.48%, 11/15/2037^(b),(d)			696		—
5.00%, 05/01/2025^(b)		985		985	4.77%, 07/15/2037			59		59
5.25%, 08/01/2023^(b)		2,245		2,297	CSMC Series 2009-RR1
					5.38%, 02/15/2040^(b)			3,165		3,252
		$		23,919
					CSMC Series 2009-RR3
Commercial Mortgage Backed Securities - 5.83%					5.34%, 12/15/2043^(b),(d)			1,545		1,608
Banc of America Commercial Mortgage Trust					DBUBS 2011-LC2 Mortgage Trust
2007-3					4.54%, 07/10/2044^(b)			5,000		5,511
0.48%, 06/10/2049^(b),(d)		1,000		975	5.46%, 07/10/2044^(b),(d)			5,000		5,261
Banc of America Commercial Mortgage Trust					GE Commercial Mortgage Corp Series 2007-
2008-1					C1 Trust
6.26%, 02/10/2051^(d)		3,255		3,512	5.61%, 12/10/2049^(d)			6,575		6,807
					GS Mortgage Securities Trust 2011-GC5
					1.64%, 08/10/2044^(b),(d)			147,729		6,815


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



			Principal						Principal
	BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

	Commercial Mortgage Backed Securities (continued)					Commercial Mortgage Backed Securities (continued)
	GS Mortgage Securities Trust 2012-GCJ7					LB-UBS Commercial Mortgage Trust 2007-
	2.53%, 05/10/2045^(d)	$	18,917	$	1,768	C6
	GS Mortgage Securities Trust 2013-GC16					6.11%, 07/15/2040		$	7,350	$	7,770
	1.52%, 11/10/2046^(d)		30,887		2,084	ML-CFC Commercial Mortgage Trust 2006-
	5.32%, 11/10/2046^(d)		800		861	4
	GS Mortgage Securities Trust 2013-GCJ12					5.20%, 12/12/2049			2,000		2,068
	3.78%, 06/10/2046^(d)		780		778	Morgan Stanley Bank of America Merrill
	GS Mortgage Securities Trust 2014-GC26					Lynch Trust 2013-C11
	1.11%, 11/10/2047^(d)		50,230		3,541	0.75%, 08/15/2046^(d)			29,056		658
	GS Mortgage Securities Trust 2015-GC34					Morgan Stanley Bank of America Merrill
	3.51%, 10/10/2048^(d)		1,482		1,511	Lynch Trust 2013-C9
	JP Morgan Chase Commercial Mortgage					3.46%, 05/15/2046			1,781		1,810
	Securities Corp					Morgan Stanley Bank of America Merrill
	1.87%, 12/15/2047^(d)		21,562		1,711	Lynch Trust 2014-C15
	3.35%, 12/15/2047^(b),(d)		500		509	1.20%, 04/15/2047^(d)			55,325		3,599
	JP Morgan Chase Commercial Mortgage					4.05%, 04/15/2047			3,000		3,215
	Securities Trust 2005-CIBC12					Morgan Stanley Bank of America Merrill
	5.30%, 09/12/2037^(d)		300		79	Lynch Trust 2014-C16
	JP Morgan Chase Commercial Mortgage					1.24%, 06/15/2047^(d)			25,721		1,725
	Securities Trust 2006-CIBC17					4.76%, 06/15/2047^(d)			4,250		4,334
	5.43%, 12/12/2043		2,096		2,147	Morgan Stanley Bank of America Merrill
	5.46%, 12/12/2043		5,000		5,059	Lynch Trust 2014-C18
	JP Morgan Chase Commercial Mortgage					4.44%, 10/15/2047^(d)			3,250		3,423
	Securities Trust 2006-LDP9					Morgan Stanley Bank of America Merrill
	5.34%, 05/15/2047		215		221	Lynch Trust 2015-C20
	JP Morgan Chase Commercial Mortgage					3.61%, 02/15/2048^(d)			2,000		2,014
	Securities Trust 2007-C1					4.16%, 02/15/2048^(d)			1,975		1,936
	5.95%, 02/15/2051^(d)		10,000		10,607	Morgan Stanley Bank of America Merrill
	JP Morgan Chase Commercial Mortgage					Lynch Trust 2015-C26
	Securities Trust 2010-C1					3.89%, 11/15/2048^(c),(f)			3,000		3,090
	5.95%, 06/15/2043^(b)		2,585		2,822	Morgan Stanley Capital I Trust 2007-IQ13
	JP Morgan Chase Commercial Mortgage					5.36%, 03/15/2044^(d)			700		722
	Securities Trust 2011-C5					MSBAM Commercial Mortgage Securities
	3.15%, 08/15/2046		1,791		1,814	Trust 2012-CKSV
	5.32%, 08/15/2046^(b),(d)		800		862	1.13%, 10/15/2030^(b),(d)			23,195		1,464
	JP Morgan Chase Commercial Mortgage					UBS Commercial Mortgage Trust 2012-C1
	Securities Trust 2013-C16					3.40%, 05/10/2045^(d)			550		571
	1.34%, 12/15/2046^(d)		13,248		753	UBS-Barclays Commercial Mortgage Trust
	JPMBB Commercial Mortgage Securities					2012	-C3
	Trust 2013-C15					3.09%, 08/10/2049^(d)			1,610		1,644
	1.57%, 11/15/2045^(d)		49,333		2,993	4.96%, 08/10/2049^(b),(d)			1,500		1,587
	JPMBB Commercial Mortgage Securities					UBS-Barclays Commercial Mortgage Trust
	Trust 2014-C18					2012	-C4
	4.81%, 02/15/2047^(d)		2,700		2,737	1.82%, 12/10/2045^(b),(d)			20,009		1,792
	JPMBB Commercial Mortgage Securities					3.32%, 12/10/2045^(b),(d)			2,300		2,325
	Trust 2014-C19					UBS-Barclays Commercial Mortgage Trust
	1.27%, 04/15/2047^(d)		47,373		2,345	2013	-C5
	JPMBB Commercial Mortgage Securities					3.18%, 03/10/2046^(d)			2,025		2,062
	Trust 2014-C24					4.09%, 03/10/2046^(b),(d)			1,090		1,001
	1.08%, 11/15/2047^(d)		9,457		575	Wachovia Bank Commercial Mortgage Trust
	3.93%, 11/15/2047^(b),(d)		1,000		830	Series 2006-C27
	4.43%, 11/15/2047^(d)		4,350		4,304	5.77%, 07/15/2045			1,138		1,150
	JPMBB Commercial Mortgage Securities					Wachovia Bank Commercial Mortgage Trust
	Trust 2015-C28					Series 2006-C28
	3.99%, 10/15/2048^(d)		7,000		6,705	0.35%, 10/15/2048^(b),(d)			18,932		18,796
	JPMBB Commercial Mortgage Securities					Wachovia Bank Commercial Mortgage Trust
	Trust 2015-C31					Series 2007-C30
	1.04%, 08/15/2048^(d)		43,414		2,909	0.40%, 12/15/2043^(b),(d)			1,350		1,311
	LB-UBS Commercial Mortgage Trust 2005-					5.25%, 12/15/2043			1,013		1,018
	C3					Wachovia Bank Commercial Mortgage Trust
	0.65%, 07/15/2040^(b),(d)		2,746		81	Series 2007-C34
	LB-UBS Commercial Mortgage Trust 2005-					5.68%, 05/15/2046^(d)			243		256
	C7					Wells Fargo Commercial Mortgage Trust
	5.32%, 11/15/2040		250		250	2015-NX	S3
	LB-UBS Commercial Mortgage Trust 2007-					4.64%, 09/15/2057^(d)			1,400		1,433
	C1					WFRBS Commercial Mortgage Trust 2013-
	0.41%, 02/15/2040^(d)		9,921		49	C12
	LB-UBS Commercial Mortgage Trust 2007-					1.47%, 03/15/2048^(b),(d)			58,213		4,125
	C2					WFRBS Commercial Mortgage Trust 2014-
	5.43%, 02/15/2040		1,912		1,981	C22
						4.07%, 09/15/2057			5,000		5,214
						4.37%, 09/15/2057^(d)			2,000		2,066


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Commercial Mortgage Backed Securities (continued)					Distribution & Wholesale (continued)
WFRBS Commercial Mortgage Trust 2014-					HD Supply Inc (continued)
C23					7.50%, 07/15/2020	$	725	$	772
0.71%, 10/15/2057^(d)	$	54,515	$	2,306	WW Grainger Inc
		$		247,940	4.60%, 06/15/2045		3,425		3,648
							$		5,762
Commercial Services - 0.15%
Ahern Rentals Inc					Diversified Financial Services - 1.89%
7.38%, 05/15/2023^(b)		760		707	AerCap Ireland Capital Ltd / AerCap Global
ERAC USA Finance LLC					Aviation Trust
3.30%, 10/15/2022^(b)		3,695		3,674	4.63%, 10/30/2020		605		627
4.50%, 02/15/2045^(b)		195		181	Aircastle Ltd
Jurassic Holdings III Inc					4.63%, 12/15/2018		380		394
6.88%, 02/15/2021^(b)		385		277	5.13%, 03/15/2021		2,340		2,469
Moody's Corp					5.50%, 02/15/2022		530		560
5.25%, 07/15/2044		680		714	7.63%, 04/15/2020		240		277
TMS International Corp					Ally Financial Inc
7.63%, 10/15/2021^(b)		925		847	4.75%, 09/10/2018		220		229
		$		6,400	Countrywide Financial Corp
					6.25%, 05/15/2016		4,530		4,651
Computers - 0.91%					Credit Acceptance Corp
Apple Inc					6.13%, 02/15/2021		3,010		3,010
0.55%, 05/03/2018^(d)		5,473		5,476
					7.38%, 03/15/2023^(b)		1,275		1,320
0.60%, 05/06/2019^(d)		3,980		3,965
					Denali Borrower LLC / Denali Finance Corp
2.85%, 05/06/2021		230		237	5.63%, 10/15/2020^(b)		1,420		1,511
3.45%, 02/09/2045		2,035		1,755	Fly Leasing Ltd
Compiler Finance Sub Inc					6.38%, 10/15/2021		2,050		2,112
7.00%, 05/01/2021^(b)		515		273
					GE Capital International Funding Co
Dell Inc					0.96%, 04/15/2016^(b)		4,671		4,670
5.65%, 04/15/2018		365		379	2.34%, 11/15/2020^(b)		19,706		19,763
Hewlett Packard Enterprise Co					4.42%, 11/15/2035^(b)		1,714		1,779
2.85%, 10/05/2018^(b)		1,390		1,393
3.60%, 10/15/2020^(b)		3,445		3,470	General Electric Capital Corp
					5.25%, 06/29/2049^(a),(d)		2,690		2,811
4.90%, 10/15/2025^(b)		2,005		1,981
6.20%, 10/15/2035^(b)		2,495		2,434	5.30%, 02/11/2021		6,800		7,762
6.35%, 10/15/2045^(b)		3,665		3,550	5.88%, 01/14/2038		534		659
					Icahn Enterprises LP / Icahn Enterprises
HP Inc					Finance Corp
6.00%, 09/15/2041		2,180		2,096	3.50%, 03/15/2017		395		400
IHS Inc					4.88%, 03/15/2019		940		961
5.00%, 11/01/2022		285		288	6.00%, 08/01/2020		1,025		1,070
International Business Machines Corp					ILFC E-Capital Trust II
0.68%, 02/12/2019^(d)		5,550		5,505
					6.25%, 12/21/2065^(b),(d)		155		146
NCR Corp					International Lease Finance Corp
4.63%, 02/15/2021		751		742	2.29%, 06/15/2016^(d)		30		30
Seagate HDD Cayman					6.25%, 05/15/2019		2,405		2,615
4.88%, 06/01/2027^(b)		2,970		2,582
5.75%, 12/01/2034^(b)		3,300		2,792	National Rural Utilities Cooperative Finance
					Corp
		$		38,918	0.56%, 05/12/2017^(d)		4,200		4,197
					4.75%, 04/30/2043^(d)		855		850
Consumer Products - 0.02%
Spectrum Brands Inc					Navient Corp
5.75%, 07/15/2025^(b)		650		693	6.13%, 03/25/2024		1,025		925
					OneMain Financial Holdings Inc
					7.25%, 12/15/2021^(b)		1,225		1,280
Credit Card Asset Backed Securities - 0.59%					Peachtree Corners Funding Trust
BA Credit Card Trust					3.98%, 02/15/2025^(b)		10,340		10,406
0.49%, 01/15/2020^(d)		1,115		1,113
					Springleaf Finance Corp
Barclays Dryrock Issuance Trust					5.25%, 12/15/2019		2,000		1,990
0.54%, 03/16/2020^(d)		5,000		4,992
					6.90%, 12/15/2017		135		142
1.48%, 09/15/2020		2,250		2,255	SUAM Finance BV
Chase Issuance Trust					4.88%, 04/17/2024^(b)		625		644
0.45%, 04/15/2019^(d)		7,183		7,144
							$		80,260
0.66%, 04/15/2019^(d)		2,150		2,141
Citibank Credit Card Issuance Trust					Electric - 3.13%
0.40%, 08/24/2018^(d)		6,625		6,620	Alabama Power Co
World Financial Network Credit Card Master					3.75%, 03/01/2045		1,835		1,680
Trust					3.85%, 12/01/2042		850		789
1.26%, 03/15/2021		785		784	4.15%, 08/15/2044		3,335		3,225
		$		25,049	CMS Energy Corp
					4.70%, 03/31/2043		910		925
Distribution & Wholesale - 0.14%					4.88%, 03/01/2044		1,835		1,896
Global Partners LP / GLP Finance Corp					Commonwealth Edison Co
7.00%, 06/15/2023		975		917	3.70%, 03/01/2045		3,680		3,373
HD Supply Inc					3.80%, 10/01/2042		2,170		2,047
5.25%, 12/15/2021^(b)		405		425
					4.60%, 08/15/2043		1,380		1,458


		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

Electric (continued)					Electric (continued)
Consolidated Edison Co of New York Inc					Puget Energy Inc
3.30%, 12/01/2024	$	3,000	$	3,044	6.00%, 09/01/2021		$	2,935	$	3,369
4.63%, 12/01/2054		1,940		1,964	Southern California Edison Co
Dominion Resources Inc/VA					3.60%, 02/01/2045			3,660		3,372
3.90%, 10/01/2025		4,530		4,592	3.90%, 12/01/2041			390		376
DTE Energy Co					4.05%, 03/15/2042			1,610		1,599
6.38%, 04/15/2033		4,795		5,894	Virginia Electric & Power Co
Duke Energy Corp					4.00%, 01/15/2043			245		240
3.75%, 04/15/2024		1,500		1,549	4.45%, 02/15/2044			1,560		1,635
Dynegy Inc					4.65%, 08/15/2043			1,620		1,744
6.75%, 11/01/2019		715		713				$		133,022
7.38%, 11/01/2022		1,385		1,388
Edison International					Electronics - 0.17%
3.75%, 09/15/2017		1,420		1,474	Keysight Technologies Inc
					3.30%, 10/30/2019^(b)			4,300		4,257
Electricite de France SA					4.55%, 10/30/2024^(b)			2,790		2,661
2.15%, 01/22/2019^(b)		1,805		1,807
2.35%, 10/13/2020^(b)		16,390		16,207	Sanmina Corp
					4.38%, 06/01/2019^(b)			210		214
3.63%, 10/13/2025^(b)		3,205		3,193
4.88%, 01/22/2044^(b)		1,140		1,136				$		7,132
4.95%, 10/13/2045^(b)		1,515		1,501
					Engineering & Construction - 0.07%
5.63%, 12/29/2049^(a),(b),(d)		4,365		4,314	Aguila 3 SA
Elwood Energy LLC					7.88%, 01/31/2018^(b)			390		399
8.16%, 07/05/2026		664		734	SBA Tower Trust
Exelon Corp					2.90%, 10/15/2044^(b)			2,700		2,684
2.85%, 06/15/2020		4,560		4,564				$		3,083
3.95%, 06/15/2025		3,225		3,256
5.10%, 06/15/2045		1,480		1,523	Entertainment - 0.30%
Florida Power & Light Co					Carmike Cinemas Inc
4.05%, 06/01/2042		1,035		1,029	6.00%, 06/15/2023^(b)			720		746
4.13%, 02/01/2042		755		763	CCM Merger Inc
Indiantown Cogeneration LP					9.13%, 05/01/2019^(b)			2,640		2,798
9.77%, 12/15/2020		821		931	Cinemark USA Inc
Kentucky Utilities Co					4.88%, 06/01/2023			2,555		2,520
3.30%, 10/01/2025		3,950		4,016	DreamWorks Animation SKG Inc
Lamar Funding Ltd					6.88%, 08/15/2020^(b)			1,435		1,428
3.96%, 05/07/2025^(b)		2,000		1,873	Eldorado Resorts Inc
Louisville Gas & Electric Co					7.00%, 08/01/2023^(b)			1,175		1,190
3.30%, 10/01/2025		5,470		5,575	Lions Gate Entertainment Corp
MidAmerican Energy Co					5.25%, 08/01/2018			265		274
4.25%, 05/01/2046		2,900		2,936	Peninsula Gaming LLC / Peninsula Gaming
Miran Mid-Atlantic Series C Pass Through					Corp
Trust					8.38%, 02/15/2018^(b)			1,200		1,248
10.06%, 12/30/2028		2,197		2,203	Regal Entertainment Group
Mirant Mid-Atlantic Series B Pass Through					5.75%, 03/15/2022			1,785		1,843
Trust					WMG Acquisition Corp
9.13%, 06/30/2017		307		310	6.00%, 01/15/2021^(b)			126		130
Northern States Power Co/MN					WMG Holdings Corp
3.40%, 08/15/2042		265		236	13.75%, 10/01/2019			755		801
NRG Energy Inc								$		12,978
6.25%, 05/01/2024		835		747
					Environmental Control - 0.03%
8.25%, 09/01/2020		820		840	Republic Services Inc
Oncor Electric Delivery Co LLC					3.80%, 05/15/2018			1,215		1,270
2.15%, 06/01/2019		4,630		4,595
5.25%, 09/30/2040		950		1,035
Pacific Gas & Electric Co					Food- 1.05	%
3.50%, 06/15/2025		3,320		3,354	BI-LO LLC / BI-LO Finance Corp
4.45%, 04/15/2042		645		651	9.25%, 02/15/2019^(b)			1,075		1,105
PacifiCorp					Cencosud SA
3.85%, 06/15/2021		1,137		1,206	5.50%, 01/20/2021^(b)			350		367
4.10%, 02/01/2042		1,675		1,644	5.50%, 01/20/2021			2,100		2,202
Perusahaan Listrik Negara PT					Gruma SAB de CV
5.50%, 11/22/2021^(b)		1,875		1,934	4.88%, 12/01/2024^(b)			3,200		3,384
PPL Electric Utilities Corp					Grupo Bimbo SAB de CV
3.00%, 09/15/2021		465		478	4.88%, 06/27/2044^(b)			2,150		1,926
4.75%, 07/15/2043		1,435		1,566	Ingles Markets Inc
PPL WEM Ltd / Western Power Distribution					5.75%, 06/15/2023			1,305		1,331
Ltd					JBS USA LLC / JBS USA Finance Inc
3.90%, 05/01/2016^(b)		2,470		2,499	5.75%, 06/15/2025^(b)			915		885
5.38%, 05/01/2021^(b)		5,140		5,683	JM Smucker Co/The
Public Service Electric & Gas Co					2.50%, 03/15/2020			2,000		1,999
3.65%, 09/01/2042		365		337	3.50%, 03/15/2025			2,910		2,919
					4.38%, 03/15/2045			4,910		4,788


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)

	Food (continued)						Healthcare - Services (continued)
	Kraft Heinz Foods Co						Anthem Inc (continued)
	2.80%, 07/02/2020^(b)		$	6,475	$	6,500	4.35%, 08/15/2020	$	505	$	537
	5.00%, 07/15/2035^(b)			1,155		1,205	4.63%, 05/15/2042		1,485		1,449
	5.20%, 07/15/2045^(b)			8,310		8,810	4.65%, 01/15/2043		1,250		1,229
	Post Holdings Inc						4.65%, 08/15/2044		855		843
	7.75%, 03/15/2024^(b)			475		506	Centene Corp
	Smithfield Foods Inc						4.75%, 05/15/2022		2,040		2,030
	5.25%, 08/01/2018^(b)			855		868	5.75%, 06/01/2017		4,580		4,775
	5.88%, 08/01/2021^(b)			1,425		1,496	Cigna Corp
	Wm Wrigley Jr Co						4.00%, 02/15/2022		1,875		1,951
	2.40%, 10/21/2018^(b)			1,650		1,676	Fresenius Medical Care US Finance II Inc
	3.38%, 10/21/2020^(b)			2,745		2,845	4.75%, 10/15/2024^(b)		1,180		1,195
				$		44,812	5.88%, 01/31/2022^(b)		985		1,074
							6.50%, 09/15/2018^(b)		330		362
	Forest Products & Paper - 0.13%						HCA Holdings Inc
	Domtar Corp						6.25%, 02/15/2021		925		1,011
	6.25%, 09/01/2042			2,155		2,103	HCA Inc
	Klabin Finance SA						4.75%, 05/01/2023		2,685		2,752
	5.25%, 07/16/2024^(b)			1,600		1,437
							5.00%, 03/15/2024		1,045		1,076
	Resolute Forest Products Inc						5.25%, 04/15/2025		1,500		1,552
	5.88%, 05/15/2023			645		480	5.38%, 02/01/2025		225		231
	Sappi Papier Holding GmbH						5.88%, 03/15/2022		580		638
	7.50%, 06/15/2032^(b)			630		586
							IASIS Healthcare LLC / IASIS Capital Corp
	Tembec Industries Inc						8.38%, 05/15/2019		310		317
	9.00%, 12/15/2019^(b)			805		644
							MPH Acquisition Holdings LLC
	Verso Paper Holdings LLC / Verso Paper Inc						6.63%, 04/01/2022^(b)		2,390		2,438
	11.75%, 01/15/2019			835		188	Tenet Healthcare Corp
				$		5,438	6.00%, 10/01/2020		155		167
	Gas- 0.05	%					UnitedHealth Group Inc
	Dominion Gas Holdings LLC						1.90%, 07/16/2018		2,425		2,454
	4.80%, 11/01/2043			75		73	4.63%, 07/15/2035		4,780		5,072
	Nakilat Inc						4.75%, 07/15/2045		4,205		4,470
	6.07%, 12/31/2033			350		405	WellCare Health Plans Inc
	Talent Yield Investments Ltd						5.75%, 11/15/2020		5,390		5,633
	4.50%, 04/25/2022^(b)			1,500		1,564			$		45,283
				$		2,042	Holding Companies - Diversified - 0.08%
	Healthcare - Products - 1.23%						Alfa SAB de CV
							5.25%, 03/25/2024^(b)		1,323		1,391
	Becton Dickinson and Co
	2.68%, 12/15/2019			2,900		2,933	Alphabet Holding Co Inc
	ConvaTec Finance International SA						7.75%, 11/01/2017		820		806
	8.25%, PIK 9.00%, 01/15/2019^(b),(e)			2,250		2,244	Argos Merger Sub Inc
							7.13%, 03/15/2023^(b)		1,115		1,173
	ConvaTec Healthcare E SA
	10.50%, 12/15/2018 ^(b)			400		414			$		3,370
	DJO Finco Inc / DJO Finance LLC / DJO						Home Builders - 0.24%
	Finance Corp						Beazer Homes USA Inc
	8.13%, 06/15/2021^(b)			1,720		1,707
							6.63%, 04/15/2018		685		707
	Hill-Rom Holdings Inc						CalAtlantic Group Inc
	5.75%, 09/01/2023^(b),(d)			740		755
							5.88%, 11/15/2024		520		546
	Kinetic Concepts Inc / KCI USA Inc						KB Home
	10.50%, 11/01/2018			1,325		1,399	4.75%, 05/15/2019		390		384
	Mallinckrodt International Finance SA /						Lennar Corp
	Mallinckrodt CB LLC						4.13%, 12/01/2018		1,725		1,764
	5.63%, 10/15/2023^(b)			1,840		1,737
							4.50%, 11/15/2019		675		699
	Medtronic Inc						4.75%, 11/15/2022^(d)		2,215		2,215
	2.50%, 03/15/2020			2,160		2,194	WCI Communities Inc
	3.50%, 03/15/2025			4,211		4,312	6.88%, 08/15/2021		2,105		2,210
	4.38%, 03/15/2035			5,170		5,354	Woodside Homes Co LLC / Woodside Homes
	4.63%, 03/15/2045			7,510		7,895	Finance Inc
	Universal Hospital Services Inc						6.75%, 12/15/2021^(b)		1,725		1,604
	7.63%, 08/15/2020			1,470		1,402			$		10,129
	Zimmer Biomet Holdings Inc
	2.00%, 04/01/2018			4,000		4,001	Home Equity Asset Backed Securities - 0.03%
	2.70%, 04/01/2020			10,765		10,734	First NLC Trust 2005-1
	3.15%, 04/01/2022			1,035		1,027	0.69%, 05/25/2035^(d)		314		219
	3.55%, 04/01/2025			3,915		3,852	JP Morgan Mortgage Acquisition Trust 2006-
	4.25%, 08/15/2035			325		307	CW2
				$		52,267	0.35%, 08/25/2036^(d)		819		769
							New Century Home Equity Loan Trust 2005-
	Healthcare - Services - 1.06%						1
	Anthem Inc						0.78%, 03/25/2035^(d)		85		85
	3.13%, 05/15/2022			865		857
	3.50%, 08/15/2024			1,175		1,170


	Principal						Principal
BONDS (continued)	Amount (000's)			Value (000's)	BONDS (continued)		Amount (000's) Value (000's)

Home Equity Asset Backed Securities (continued)					Lodging (continued)
Saxon Asset Securities Trust 2004-1					Boyd Gaming Corp (continued)
1.89%, 03/25/2035^(d)	$	282	$	133	9.00%, 07/01/2020		$	364	$	392
Specialty Underwriting & Residential Finance					MGM Resorts International
Trust Series 2004-BC1					6.00%, 03/15/2023			705		716
0.96%, 02/25/2035^(d)		303		278	6.63%, 12/15/2021			1,065		1,137
		$		1,484	7.75%, 03/15/2022			85		94
					8.63%, 02/01/2019			190		215
Insurance - 2.17%					10.00%, 11/01/2016			1,205		1,293
ACE INA Holdings Inc
2.30%, 11/03/2020^(f)		8,575		8,580	Wyndham Worldwide Corp
3.35%, 05/03/2026^(f)		5,395		5,413	2.50%, 03/01/2018			2,920		2,924
								$		7,317
American International Group Inc
3.38%, 08/15/2020		6,505		6,792	Machinery - Construction & Mining - 0.02%
3.75%, 07/10/2025		7,060		7,173	Vander Intermediate Holding II Corp
3.88%, 01/15/2035		5,400		5,059	9.75%, PIK 10.50%, 02/01/2019 ^(b),(e)			875		757
4.50%, 07/16/2044		6,000		5,876
4.80%, 07/10/2045		1,470		1,516


CNO Financial Group Inc					Machinery - Diversified - 0.03%
4.50%, 05/30/2020		650		676	CNH Industrial America LLC
					7.25%, 01/15/2016			150		152
Liberty Mutual Group Inc
4.25%, 06/15/2023^(b)		2,270		2,327	CNH Industrial Capital LLC
					3.88%, 07/16/2018^(b)			1,330		1,333
7.00%, 03/07/2067^(b),(d)		2,760		2,646
7.80%, 03/07/2087^(b)		1,695		1,987				$		1,485
Pricoa Global Funding I					Media- 2.65	%
2.20%, 05/16/2019^(b)		3,170		3,177	21st Century Fox America Inc
Prudential Financial Inc					3.70%, 10/15/2025^(b)			2,620		2,620
5.38%, 05/15/2045^(d)		6,175		6,206	4.75%, 09/15/2044			850		853
TIAA Asset Management Finance Co LLC					4.95%, 10/15/2045^(b)			820		839
2.95%, 11/01/2019^(b)		6,675		6,759	5.40%, 10/01/2043			1,465		1,571
Voya Financial Inc					6.15%, 02/15/2041			3,275		3,825
5.50%, 07/15/2022		3,500		3,963	Altice Financing SA
5.65%, 05/15/2053^(d)		8,615		8,723	6.50%, 01/15/2022^(b)			475		481
XLIT Ltd					6.63%, 02/15/2023^(b)			400		401
4.45%, 03/31/2025		9,000		8,998	7.88%, 12/15/2019^(b)			400		418
5.50%, 03/31/2045		6,890		6,609	Altice Finco SA
		$		92,480	7.63%, 02/15/2025^(b)			1,425		1,350
					8.13%, 01/15/2024^(b)			1,720		1,711
Internet - 0.15%					9.88%, 12/15/2020^(b)			325		349
Alibaba Group Holding Ltd
3.13%, 11/28/2021^(b)		3,200		3,151	Altice Luxembourg SA
					7.75%, 05/15/2022^(b)			340		327
Zayo Group LLC / Zayo Capital Inc
6.00%, 04/01/2023^(b)		2,115		2,156	Cable One Inc
					5.75%, 06/15/2022^(b)			180		184
10.13%, 07/01/2020		883		962
					Cablevision Systems Corp
		$		6,269	8.00%, 04/15/2020			990		965
Iron & Steel - 0.24%					CBS Corp
AK Steel Corp					5.75%, 04/15/2020			1,640		1,849
7.63%, 05/15/2020		820		426	CCO Holdings LLC / CCO Holdings Capital
ArcelorMittal					Corp
6.13%, 06/01/2018		345		346	5.13%, 05/01/2023^(b)			4,820		4,832
6.25%, 03/01/2021^(d)		1,940		1,832	CCO Safari II LLC
7.75%, 10/15/2039^(d)		2,165		1,846	3.58%, 07/23/2020^(b)			3,930		3,945
Commercial Metals Co					4.91%, 07/23/2025^(b)			2,280		2,318
4.88%, 05/15/2023		2,785		2,465	6.38%, 10/23/2035^(b)			585		603
7.35%, 08/15/2018		740		795	6.83%, 10/23/2055^(b)			2,395		2,427
Samarco Mineracao SA					Comcast Corp
5.38%, 09/26/2024^(b)		700		600	3.38%, 02/15/2025			7,450		7,587
Signode Industrial Group Lux SA/Signode					4.20%, 08/15/2034			510		506
Industrial Group US Inc					4.60%, 08/15/2045			325		337
6.38%, 05/01/2022^(b)		2,240		2,100	6.40%, 03/01/2040			1,975		2,538
		$		10,410	6.50%, 11/15/2035			330		421
					CSC Holdings LLC
Leisure Products & Services - 0.05%					6.75%, 11/15/2021			280		272
Harley-Davidson Inc					8.63%, 02/15/2019			185		197
4.63%, 07/28/2045		875		867	DIRECTV Holdings LLC / DIRECTV
Jarden Corp					Financing Co Inc
6.13%, 11/15/2022		110		114	3.80%, 03/15/2022			2,145		2,196
NCL Corp Ltd					4.45%, 04/01/2024			8,950		9,229
5.25%, 11/15/2019^(b)		920		954
					6.00%, 08/15/2040			1,560		1,618
		$		1,935	6.38%, 03/01/2041			1,195		1,290
Lodging - 0.17%					DISH DBS Corp
Boyd Gaming Corp					4.25%, 04/01/2018			710		709
6.88%, 05/15/2023		515		546	5.88%, 07/15/2022			1,890		1,852
					5.88%, 11/15/2024			1,125		1,076


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)

Media (continued)					Mining (continued)
DISH DBS Corp (continued)					Rio Tinto Finance USA Ltd	(continued)
6.75%, 06/01/2021	$	4,605	$	4,755	9.00%, 05/01/2019	$	2,670	$	3,242
7.88%, 09/01/2019		1,517		1,665	Rio Tinto Finance USA PLC
NBCUniversal Enterprise Inc					2.00%, 03/22/2017		2,350		2,360
1.01%, 04/15/2018^(b),(d)		5,490		5,492	St Barbara Ltd
NBCUniversal Media LLC					8.88%, 04/15/2018^(b)		880		836
2.88%, 01/15/2023		4,325		4,338	Taseko Mines Ltd
4.45%, 01/15/2043		1		1	7.75%, 04/15/2019		330		172
Neptune Finco Corp					Teck Resources Ltd
6.63%, 10/15/2025^(b)		445		468	2.50%, 02/01/2018		1,045		891
10.13%, 01/15/2023 ^(b)		1,250		1,322			$		34,897
Numericable-SFR SAS
6.00%, 05/15/2022^(b)		235		236	Miscellaneous Manufacturers - 0.48%
					Bombardier Inc
RCN Telecom Services LLC / RCN Capital					5.50%, 09/15/2018^(b)		1,100		1,031
Corp					7.50%, 03/15/2025^(b)		575		447
8.50%, 08/15/2020^(b)		1,685		1,771
Time Warner Cable Inc					Ingersoll-Rand Global Holding Co Ltd
4.13%, 02/15/2021		2,840		2,915	2.88%, 01/15/2019		1,065		1,082
5.88%, 11/15/2040		10		9	5.75%, 06/15/2043		790		869
6.75%, 07/01/2018		920		1,021	Ingersoll-Rand Luxembourg Finance SA
8.75%, 02/14/2019		1,165		1,366	3.55%, 11/01/2024		3,405		3,372
Time Warner Inc					4.65%, 11/01/2044		1,185		1,128
2.10%, 06/01/2019		1,080		1,076	Siemens Financieringsmaatschappij NV
					1.45%, 05/25/2018^(b)		1,133		1,131
4.05%, 12/15/2023		5,060		5,256	2.15%, 05/27/2020^(b)		3,307		3,300
6.25%, 03/29/2041		6,685		7,629	4.40%, 05/27/2045^(b)		800		828
Unitymedia GmbH
6.13%, 01/15/2025^(b)		895		916	Tyco Electronics Group SA
					0.52%, 01/29/2016^(d)		1,735		1,735
Unitymedia Hessen GmbH & Co KG /
Unitymedia NRW GmbH					2.38%, 12/17/2018		150		151
5.50%, 01/15/2023^(b)		1,275		1,310	3.50%, 02/03/2022		2,935		3,000
Univision Communications Inc					7.13%, 10/01/2037		105		134
8.50%, 05/15/2021^(b)		1,355		1,416	Tyco International Finance SA
Viacom Inc					5.13%, 09/14/2045		2,110		2,217
4.85%, 12/15/2034		3,405		2,937			$		20,425
5.85%, 09/01/2043		885		833	Mortgage Backed Securities - 1.95%
VTR Finance BV					Adjustable Rate Mortgage Trust 2004-2
6.88%, 01/15/2024^(b)		1,555		1,504	1.34%, 02/25/2035^(d)		43		43
WideOpenWest Finance LLC /					Fannie Mae REMIC Trust 2005-W2
WideOpenWest Capital Corp					0.40%, 05/25/2035^(d)		542		536
13.38%, 10/15/2019		1,535		1,562	Fannie Mae REMICS
10.25%, 07/15/2019		1,395		1,393	2.25%, 07/25/2040		277		277
		$		112,887	3.50%, 09/25/2027^(d)		9,723		1,220
					3.50%, 11/25/2027^(d)		2,560		291
Metal Fabrication & Hardware - 0.03%
					3.50%, 05/25/2028		4,095		441
Wise Metals Intermediate Holdings LLC/Wise					5.90%, 02/25/2043^(d)		7,898		1,686
Holdings Finance Corp					6.30%, 12/25/2021^(d)		1,084		122
9.75%, PIK 10.50%, 06/15/2019 ^(b),(e)		1,455		1,353
					6.30%, 03/25/2022^(d)		725		80
					38.03%, 08/25/2035 ^(d)		28		6
Mining - 0.82%					Freddie Mac REMICS
Anglo American Capital PLC					0.65%, 06/15/2023^(d)		36		37
1.27%, 04/15/2016^(b),(d)		4,150		4,129	0.80%, 08/15/2018^(d)		368		371
Barrick Gold Corp					1.25%, 09/15/2033		2,076		2,079
3.85%, 04/01/2022		1,739		1,636	2.00%, 02/15/2036^(d)		1,285		1,282
Barrick North America Finance LLC					2.75%, 03/15/2041		1,572		1,614
4.40%, 05/30/2021		2,881		2,863	3.00%, 09/15/2025^(d)		5,713		321
BHP Billiton Finance USA Ltd					3.00%, 05/15/2027^(d)		11,677		822
2.05%, 09/30/2018		1,670		1,675	3.00%, 10/15/2027^(d)		1,601		153
FMG Resources August 2006 Pty Ltd					3.00%, 02/15/2029^(d)		10,805		1,053
6.88%, 04/01/2022^(b)		1,895		1,355	3.50%, 02/15/2028		7,131		726
8.25%, 11/01/2019^(b)		880		748	3.50%, 01/15/2040^(d)		6,606		857
9.75%, 03/01/2022^(b)		405		403	3.50%, 03/15/2041		8,296		1,122
Freeport-McMoRan Inc					4.00%, 09/15/2021		15		15
2.30%, 11/14/2017		3,895		3,661	4.00%, 04/15/2025^(d)		7,715		557
4.00%, 11/14/2021		4,000		3,358	6.02%, 07/15/2045^(d)		21,000		4,732
5.40%, 11/14/2034		905		638	6.45%, 05/15/2026^(d)		5,217		812
Glencore Funding LLC					6.55%, 09/15/2034^(d)		1,051		132
3.13%, 04/29/2019^(b)		945		810	Freddie Mac Structured Agency Credit Risk
Newmont Mining Corp					Debt Notes
4.88%, 03/15/2042		2,895		2,307	1.05%, 04/25/2024^(d)		5,893		5,888
Rio Tinto Finance USA Ltd					1.10%, 10/25/2027^(d)		7,161		7,128
3.50%, 11/02/2020		749		781	1.35%, 12/25/2027^(d)		7,999		7,995
4.13%, 05/20/2021		2,885		3,032	1.44%, 03/25/2028^(d)		4,959		4,955


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Mortgage Backed Securities (continued)					Oil & Gas (continued)
Freddie Mac Structured Agency Credit Risk					Drill Rigs Holdings Inc
Debt Notes (continued)					6.50%, 10/01/2017^(b)	$	330	$	225
1.45%, 01/25/2025^(d)	$	3,820	$	3,820	Encana Corp
1.55%, 08/25/2024^(d)		917		916	5.15%, 11/15/2041		1,035		813
1.60%, 10/25/2024^(d)		749		749	EP Energy LLC / Everest Acquisition Finance
1.65%, 09/25/2024^(d)		12,203		12,252	Inc
1.85%, 08/25/2024^(d)		3,406		3,422	6.38%, 06/15/2023		845		636
2.60%, 08/25/2024^(d)		5,750		5,808	9.38%, 05/01/2020		2,665		2,319
Ginnie Mae					Halcon Resources Corp
1.75%, 10/16/2037		803		809	8.63%, 02/01/2020^(b)		275		237
3.50%, 02/20/2040^(d)		4,986		704	9.25%, 02/15/2022		150		48
4.50%, 05/16/2043^(d)		3,873		751	9.75%, 07/15/2020		1,550		527
4.50%, 04/16/2044		1,295		160	Linn Energy LLC / Linn Energy Finance
5.00%, 10/16/2022^(d)		1,584		38	Corp
5.41%, 02/20/2045^(d)		10,185		2,141	6.25%, 11/01/2019^(d)		820		193
6.46%, 08/20/2038^(d)		10,746		1,762	6.50%, 05/15/2019		1,015		264
Impac CMB Trust Series 2007-A					8.63%, 04/15/2020		310		81
0.45%, 05/25/2037^(b),(d)		1,753		1,638	Marathon Petroleum Corp
Merrill Lynch Mortgage Investors Trust Series					4.75%, 09/15/2044		3,485		3,161
2005 -A8					Nabors Industries Inc
0.55%, 08/25/2036^(d)		168		148	2.35%, 09/15/2016		1,400		1,393
Residential Asset Securitization Trust 2004-					Noble Energy Inc
A10					3.90%, 11/15/2024		4,485		4,269
5.50%, 02/25/2035		130		130	5.05%, 11/15/2044		3,025		2,768
Wells Fargo Mortgage Backed Securities					Northern Blizzard Resources Inc
2005-AR16 Trust					7.25%, 02/01/2022^(b)		715		586
2.70%, 03/25/2035^(d)		448		441	Oasis Petroleum Inc
		$		83,042	6.50%, 11/01/2021		455		388
					6.88%, 03/15/2022		290		247
Office & Business Equipment - 0.11%					6.88%, 01/15/2023		1,870		1,618
Xerox Corp					Ocean Rig UDW Inc
2.95%, 03/15/2017		555		561	7.25%, 04/01/2019^(b)		1,320		614
3.50%, 08/20/2020		1,795		1,755	Pacific Exploration and Production Corp
6.75%, 02/01/2017		550		580	5.13%, 03/28/2023^(b)		700		256
6.75%, 12/15/2039		1,730		1,784	PDC Energy Inc
		$		4,680	7.75%, 10/15/2022		2,250		2,261
Oil & Gas - 2.30%					Petroleos Mexicanos
Anadarko Petroleum Corp					4.50%, 01/23/2026^(b)		1,500		1,432
3.45%, 07/15/2024		4,585		4,477	6.38%, 01/23/2045		1,575		1,492
4.50%, 07/15/2044		1,525		1,412	Phillips 66
Apache Corp					4.65%, 11/15/2034		2,180		2,175
4.25%, 01/15/2044		365		320	Pride International Inc
4.75%, 04/15/2043		2,395		2,215	6.88%, 08/15/2020		1,880		1,852
Baytex Energy Corp					QEP Resources Inc
5.13%, 06/01/2021^(b)		370		311	5.25%, 05/01/2023		1,025		910
BP Capital Markets PLC					6.80%, 04/01/2018		200		202
0.85%, 05/10/2019^(d)		6,585		6,485	Rowan Cos Inc
Carrizo Oil & Gas Inc					5.00%, 09/01/2017		1,875		1,889
6.25%, 04/15/2023		145		138	5.40%, 12/01/2042		1,960		1,356
7.50%, 09/15/2020		2,907		2,900	Seven Generations Energy Ltd
					6.75%, 05/01/2023^(b)		285		259
Chaparral Energy Inc
7.63%, 11/15/2022		1,456		480	Seventy Seven Operating LLC
9.88%, 10/01/2020		655		242	6.63%, 11/15/2019		1,385		821
Chesapeake Energy Corp					Shell International Finance BV
3.57%, 04/15/2019^(d)		1,010		651	3.25%, 05/11/2025		560		559
4.88%, 04/15/2022		700		434	Southwestern Energy Co
6.13%, 02/15/2021		615		403	4.05%, 01/23/2020		8,880		8,556
6.50%, 08/15/2017		295		271	Sunoco LP / Sunoco Finance Corp
					5.50%, 08/01/2020^(b)		765		784
CNOOC Finance 2013 Ltd					6.38%, 04/01/2023^(b)		1,075		1,083
3.00%, 05/09/2023		850		805
ConocoPhillips					TalismanEnergyInc
5.75%, 02/01/2019		500		559	3.75%, 02/01/2021		3,505		3,200
ConocoPhillips Co					5.50%, 05/15/2042		4,680		3,416
1.22%, 05/15/2022^(d)		3,300		3,292	7.75%, 06/01/2019		2,355		2,596
					Ultra Petroleum Corp
Continental Resources Inc/OK					6.13%, 10/01/2024^(b)		1,475		826
3.80%, 06/01/2024		4,885		4,088
4.50%, 04/15/2023		1,945		1,718	Whiting Canadian Holding Co ULC
Denbury Resources Inc					8.13%, 12/01/2019		410		413
5.50%, 05/01/2022		1,055		738	Woodside Finance Ltd
					3.65%, 03/05/2025^(b)		1,065		970
Devon Energy Corp
2.25%, 12/15/2018		4,935		4,938	WPX Energy Inc
					7.50%, 08/01/2020		830		776


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Oil & Gas (continued)					Packaging & Containers (continued)
YPF SA					Reynolds Group Issuer Inc / Reynolds Group
8.88%, 12/19/2018^(b)	$	2,250	$	2,323	Issuer LLC / Reynolds Group Issuer
		$		97,671	(Luxembourg) S.A.
					7.88%, 08/15/2019	$	1,065	$	1,104
Oil & Gas Services - 0.06%					Rock-Tenn Co
Exterran Partners LP / EXLP Finance Corp					3.50%, 03/01/2020		4,330		4,452
6.00%, 10/01/2022		395		334			$		18,931
PHI Inc
5.25%, 03/15/2019		755		668	Pharmaceuticals - 0.87%
Weatherford International Ltd/Bermuda					AbbVie Inc
5.13%, 09/15/2020		1,190		1,019	2.50%, 05/14/2020		5,245		5,186
5.95%, 04/15/2042		685		464	3.60%, 05/14/2025		1,565		1,538
		$		2,485	4.70%, 05/14/2045		3,975		3,805
					Actavis Funding SCS
Other Asset Backed Securities - 1.29%					3.00%, 03/12/2020		3,425		3,437
Chase Funding Trust Series 2003-5					3.45%, 03/15/2022		2,000		1,987
0.80%, 07/25/2033^(d)		716		655
					4.55%, 03/15/2035		410		391
Chase Funding Trust Series 2004-1
0.66%, 12/25/2033^(d)		23		21	Forest Laboratories LLC
					5.00%, 12/15/2021^(b)		7,670		8,289
Countrywide Asset-Backed Certificates
1.80%, 01/25/2034^(d)		11		10	JLL/Delta Dutch Pledgeco BV
					8.75%, PIK 9.50%, 05/01/2020^(b),(e)		1,210		1,236
Dell Equipment Finance Trust 2014-1
0.64%, 07/22/2016^(b)		1,128		1,128	Perrigo Co PLC
					1.30%, 11/08/2016		690		683
Dell Equipment Finance Trust 2015-1
1.01%, 07/24/2017^(b)		14,000		13,991	Pfizer Inc
					5.20%, 08/12/2020		3,626		4,090
Dell Equipment Finance Trust 2015-2
1.09%, 12/22/2017^(b),(c),(d)		10,000		10,000	Valeant Pharmaceuticals International Inc
					5.38%, 03/15/2020^(b)		1,270		1,105
1.72%, 09/22/2020^(b),(c),(d)		5,200		5,200
					5.50%, 03/01/2023^(b)		545		458
GreatAmerica Leasing Receivables					5.88%, 05/15/2023^(b)		2,675		2,252
0.61%, 05/15/2016^(b),(d)		53		53
					7.50%, 07/15/2021^(b)		1,710		1,560
GreatAmerica Leasing Receivables Funding					Wyeth LLC
LLC					6.00%, 02/15/2036		565		669
1.66%, 04/17/2017^(b)		345		345
					Zoetis Inc
JP Morgan Mortgage Acquisition Trust 2007-					1.15%, 02/01/2016		490		490
CH3
0.35%, 03/25/2037^(d)		1,525		1,508			$		37,176
Kubota Credit Owner Trust 2015-1					Pipelines - 1.63%
1.54%, 03/15/2019^(b),(d)		8,880		8,878	Boardwalk Pipelines LP
Popular ABS Mortgage Pass-Through Trust					3.38%, 02/01/2023		4,445		3,793
2005-1					Columbia Pipeline Group Inc
0.47%, 05/25/2035^(d)		1,093		973	3.30%, 06/01/2020^(b)		5,620		5,606
Trade MAPS 1 Ltd					Enable Midstream Partners LP
0.90%, 12/10/2018^(b),(d)		11,500		11,472	3.90%, 05/15/2024^(b)		1,590		1,282
Volvo Financial Equipment LLC Series 2014-					Enbridge Energy Partners LP
1					4.38%, 10/15/2020		2,865		2,902
0.54%, 11/15/2016^(b),(d)		508		508	Enbridge Inc
		$		54,742	0.78%, 06/02/2017^(d)		4,580		4,498
					Energy Transfer Equity LP
Packaging & Containers - 0.44%					5.88%, 01/15/2024		410		397
Ardagh Finance Holdings SA					Energy Transfer Partners LP
8.63%, PIK 8.63%, 06/15/2019^(b),(e)		381		399
					4.05%, 03/15/2025		2,885		2,538
Ardagh Packaging Finance PLC / Ardagh					4.15%, 10/01/2020		3,330		3,340
Holdings USA Inc					4.90%, 03/15/2035		950		771
3.34%, 12/15/2019^(b),(d)		1,150		1,133
6.00%, 06/30/2021^(b)		220		216	EnLink Midstream Partners LP
7.00%, 11/15/2020^(b)		46		46	4.15%, 06/01/2025		3,440		3,138
					4.40%, 04/01/2024		904		851
Berry Plastics Corp					5.05%, 04/01/2045		1,210		976
6.00%, 10/15/2022^(b)		485		507
					Enterprise Products Operating LLC
Beverage Packaging Holdings Luxembourg II					3.70%, 02/15/2026		1,915		1,820
SA / Beverage Packaging Holdings II					4.90%, 05/15/2046		2,730		2,502
5.63%, 12/15/2016^(b)		240		240
6.00%, 06/15/2017^(b)		660		663	Kinder Morgan Energy Partners LP
					4.70%, 11/01/2042		1,540		1,151
Coveris Holding Corp					5.63%, 09/01/2041		680		563
10.00%, 06/01/2018 ^(b)		1,500		1,485
					Kinder Morgan Inc/DE
Coveris Holdings SA					3.05%, 12/01/2019		4,445		4,309
7.88%, 11/01/2019^(b)		885		841
					5.05%, 02/15/2046		850		674
Crown Cork & Seal Co Inc					ONEOK Partners LP
7.38%, 12/15/2026		1,615		1,762	4.90%, 03/15/2025		2,515		2,319
Packaging Corp of America					Sabine Pass Liquefaction LLC
4.50%, 11/01/2023		5,775		6,083	5.63%, 02/01/2021^(d)		990		983
					5.63%, 03/01/2025^(b)		910		872
					6.25%, 03/15/2022		745		739


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

	Pipelines (continued)						Retail (continued)
	Sabine Pass LNG LP						Claire's Stores Inc
	7.50%, 11/30/2016		$	350	$	361	7.75%, 06/01/2020^(b)	$	365	$	104
	TransCanada PipeLines Ltd						9.00%, 03/15/2019^(b)		395		323
	4.63%, 03/01/2034			965		929	CVS Health Corp
	5.00%, 10/16/2043			1,605		1,573	2.80%, 07/20/2020		1,110		1,129
	7.13%, 01/15/2019			730		836	3.88%, 07/20/2025		2,454		2,524
	Transportadora de Gas Internacional SA ESP						4.13%, 05/15/2021		3,160		3,383
	5.70%, 03/20/2022			1,315		1,351	4.75%, 12/01/2022^(b)		6,515		7,101
	Western Gas Partners LP						4.88%, 07/20/2035		5,155		5,426
	5.45%, 04/01/2044			4,215		3,826	5.00%, 12/01/2024^(b)		1,835		2,038
	Williams Cos Inc/The						5.13%, 07/20/2045		8,595		9,215
	7.88%, 09/01/2021			2,770		2,802	CVS Pass-Through Trust
	Williams Partners LP						5.93%, 01/10/2034^(b)		1,084		1,207
	3.60%, 03/15/2022			3,500		3,158	7.51%, 01/10/2032^(b)		2,803		3,422
	5.10%, 09/15/2045			830		639	Dollar Tree Inc
	Williams Partners LP / ACMP Finance Corp						5.25%, 03/01/2020^(b)		325		339
	4.88%, 05/15/2023			4,760		4,296	5.75%, 03/01/2023^(b)		650		685
	4.88%, 03/15/2024			2,950		2,655	Home Depot Inc/The
	6.13%, 07/15/2022			1,100		1,126	3.35%, 09/15/2025		7,580		7,777
				$		69,576	JC Penney Corp Inc
							5.65%, 06/01/2020		1,850		1,693
	Real Estate - 0.14%						L Brands Inc
	China Overseas Finance Cayman VI Ltd						6.88%, 11/01/2035^(b)		745		774
	4.25%, 05/08/2019			1,100		1,143	Landry's Holdings II Inc
	Crescent Resources LLC / Crescent Ventures						10.25%, 01/01/2018 ^(b)		1,085		1,117
	Inc
	10.25%, 08/15/2017 ^(b)			1,310		1,329	Landry's Inc
							9.38%, 05/01/2020^(b)		1,460		1,566
	Prologis LP						Macy's Retail Holdings Inc
	3.75%, 11/01/2025			1,680		1,666	5.90%, 12/01/2016		3,694		3,883
	4.25%, 08/15/2023			1,050		1,095	6.90%, 04/01/2029		145		173
	6.88%, 03/15/2020			743		857	Michaels Stores Inc
				$		6,090	5.88%, 12/15/2020^(b)		1,007		1,062
	REITS- 0.86	%					Neiman Marcus Group LTD LLC
							8.75%, 10/15/2021^(b)		855		888
	DDR Corp
	3.63%, 02/01/2025			3,310		3,140	Petco Holdings Inc
							8.50%, PIK 9.25%, 10/15/2017^(b),(e)		1,905		1,938
	DuPont Fabros Technology LP
	5.88%, 09/15/2021			1,315		1,381	Rite Aid Corp
	Equinix Inc						6.13%, 04/01/2023^(b)		900		970
	4.88%, 04/01/2020			230		240	Tops Holding LLC / Tops Markets II Corp
							8.00%, 06/15/2022^(b)		1,320		1,366
	5.38%, 01/01/2022			935		977
	5.38%, 04/01/2023			730		759	Wal-Mart Stores Inc
	Hospitality Properties Trust						1.00%, 04/21/2017		2,750		2,762
	4.50%, 06/15/2023			940		937			$		65,806
	Host Hotels & Resorts LP						Semiconductors - 0.28%
	4.50%, 02/01/2026			1,635		1,643	Applied Materials Inc
	iStar Inc						5.10%, 10/01/2035		3,110		3,145
	3.88%, 07/01/2016			245		244	Micron Technology Inc
	4.88%, 07/01/2018			390		384	5.25%, 01/15/2024^(b)		1,805		1,729
	5.00%, 07/01/2019			125		122	NXP BV / NXP Funding LLC
	9.00%, 06/01/2017			490		519	5.75%, 02/15/2021^(b)		200		209
	Kimco Realty Corp						QUALCOMM Inc
	3.40%, 11/01/2022			2,160		2,161	4.65%, 05/20/2035		3,995		3,695
	National Retail Properties Inc						4.80%, 05/20/2045		1,065		921
	4.00%, 11/15/2025			1,740		1,731	Semiconductor Manufacturing International
	Regency Centers LP						Corp
	5.88%, 06/15/2017			7,225		7,674	4.13%, 10/07/2019^(b)		2,250		2,245
	Retail Properties of America Inc								$		11,944
	4.00%, 03/15/2025			3,160		3,017
	Scentre Group Trust 1 / Scentre Group Trust						Software - 0.66%
	2						Activision Blizzard Inc
	2.38%, 04/28/2021^(b)			4,030		3,863	5.63%, 09/15/2021^(b)		2,885		3,052
	Select Income REIT						6.13%, 09/15/2023^(b)		970		1,056
	4.15%, 02/01/2022			3,170		3,123	Fidelity National Information Services Inc
	Simon Property Group LP						2.85%, 10/15/2018		2,450		2,476
	2.50%, 09/01/2020			4,490		4,523	3.63%, 10/15/2020		2,580		2,626
				$		36,438	Microsoft Corp
							2.00%, 11/03/2020^(f)		3,645		3,654
	Retail - 1.55%						3.13%, 11/03/2025^(f)		2,845		2,879
	1011778 BC ULC / New Red Finance Inc						4.45%, 11/03/2045^(f)		2,595		2,631
	4.63%, 01/15/2022^(b)			935		949
							MSCI Inc
	Building Materials Holding Corp						5.25%, 11/15/2024^(b)		785		826
	9.00%, 09/15/2018^(b)			1,880		1,992
							5.75%, 08/15/2025^(b)		355		374


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)

Software (continued)					Sovereign (continued)
Oracle Corp					Panama Government International Bond
2.50%, 10/15/2022	$	773	$	757	3.75%, 03/16/2025	$	550	$	545
2.95%, 05/15/2025		5,990		5,859	4.00%, 09/22/2024		2,500		2,525
4.38%, 05/15/2055		1,895		1,776	Peruvian Government International Bond
		$		27,966	4.13%, 08/25/2027		2,225		2,236
					Poland Government Bond
Sovereign - 0.83%					5.25%, 10/25/2020	PLN	315		94
Australia Government Bond					Poland Government International Bond
3.25%, 04/21/2029	AUD	125		92	3.00%, 03/17/2023	$	1,700		1,718
4.50%, 04/15/2020		200		158	Romanian Government International Bond
Belgium Government Bond					4.88%, 01/22/2024^(b)		1,850		2,012
4.25%, 09/28/2021^(b)	EUR	35		48
					Russian Foreign Bond - Eurobond
4.25%, 09/28/2022		305		425	7.50%, 03/31/2030^(d)		3,900		4,638
Bundesrepublik Deutschland					Spain Government Bond
1.00%, 08/15/2024		395		458	0.25%, 04/30/2018	EUR	500		551
1.50%, 09/04/2022		200		241	0.50%, 10/31/2017		100		111
1.50%, 05/15/2024		425		513	2.75%, 10/31/2024^(b)		175		211
4.75%, 07/04/2028		15		25	4.65%, 07/30/2025^(b)		40		56
Canada Housing Trust No 1					4.85%, 10/31/2020^(b)		295		390
1.70%, 12/15/2017^(b)	CAD	525		409
					5.15%, 10/31/2044^(b)		25		40
2.40%, 12/15/2022^(b)		40		32
					5.50%, 04/30/2021^(b)		100		138
Colombia Government International Bond					Sweden Government Bond
7.38%, 03/18/2019	$	100		114	1.50%, 11/13/2023	SEK	550		70
Denmark Government Bond					4.25%, 03/12/2019		200		27
1.75%, 11/15/2025	DKK	750		120	Switzerland Government Bond
France Government Bond OAT					2.50%, 03/08/2036	CHF	30		43
0.50%, 05/25/2025	EUR	100		107	United Kingdom Gilt
1.00%, 05/25/2019		300		343	1.25%, 07/22/2018	GBP	100		156
1.75%, 11/25/2024		385		463	1.75%, 07/22/2019		35		55
3.00%, 04/25/2022		740		956	1.75%, 09/07/2022		490		764
3.50%, 04/25/2026		30		42	3.25%, 01/22/2044		200		347
4.50%, 04/25/2041		25		44	4.25%, 12/07/2040		60		121
Hungary Government International Bond					4.75%, 12/07/2030		25		51
5.38%, 02/21/2023	$	1,740		1,914			$		35,245
Ireland Government Bond
3.40%, 03/18/2024	EUR	160		210	Student Loan Asset Backed Securities - 1.43%
4.50%, 04/18/2020		200		262	Navient Private Education Loan Trust 2014-
Italy Buoni Poliennali Del Tesoro					A
0.25%, 05/15/2018		235		259	0.68%, 05/16/2022^(b),(d)	$	2,755		2,748
2.50%, 12/01/2024		100		120	Navient Private Education Loan Trust 2015-
3.50%, 03/01/2030^(b)		500		654	A
3.75%, 08/01/2021		355		454	0.70%, 12/15/2021^(b),(d)		3,341		3,329
4.25%, 09/01/2019		75		95	Navient Student Loan Trust 2014-8
4.75%, 06/01/2017		75		89	0.48%, 08/25/2020^(d)		5,201		5,175
5.00%, 09/01/2040		15		24	Navient Student Loan Trust 2015-1
6.00%, 05/01/2031		20		33	0.50%, 09/26/2022^(d)		2,196		2,183
Japan Government Ten Year Bond					SLM Private Education Loan Trust 2012-A
0.50%, 12/20/2024	JPY	35,000		297	1.60%, 08/15/2025^(b),(d)		8,116		8,140
0.60%, 03/20/2023		30,000		257	SLM Private Education Loan Trust 2012-B
1.40%, 06/20/2019		81,000		705	1.30%, 12/15/2021^(b),(d)		176		177
1.50%, 09/20/2018		139,500		1,205	SLM Private Education Loan Trust 2012-C
Japan Government Thirty Year Bond					1.30%, 08/15/2023^(b),(d)		2,437		2,437
1.50%, 03/20/2045		36,000		309	SLM Private Education Loan Trust 2012-D
Japan Government Twenty Year Bond					1.25%, 06/15/2023^(b),(d)		5,652		5,655
1.40%, 09/20/2034		11,000		97	SLM Private Education Loan Trust 2012-E
1.50%, 06/20/2034		100,000		901	0.95%, 10/16/2023^(b),(d)		3,241		3,239
1.90%, 03/20/2024		95,000		899	SLM Private Education Loan Trust 2013-A
Kazakhstan Government International Bond					0.80%, 08/15/2022^(b),(d)		4,188		4,175
5.13%, 07/21/2025^(b)	$	1,200		1,193	SLM Private Education Loan Trust 2013-B
Kenya Government International Bond					0.85%, 07/15/2022^(b),(d)		5,649		5,640
5.88%, 06/24/2019^(b)		1,200		1,161	SLM Private Education Loan Trust 2014-A
Mexican Bonos					0.80%, 07/15/2022^(b),(d)		9,180		9,147
5.00%, 12/11/2019^(d)	MXN	3,500		211	SLM Student Loan Trust 2008-6
Mexico Government International Bond					0.87%, 10/25/2017^(d)		38		38
3.63%, 03/15/2022	$	100		102	SLM Student Loan Trust 2008-8
4.00%, 10/02/2023		230		237	1.22%, 10/25/2017^(d)		29		29
Namibia International Bonds					SLM Student Loan Trust 2012-6
5.25%, 10/29/2025^(b)		1,650		1,634	0.48%, 09/25/2019^(d)		8,346		8,310
Netherlands Government Bond					SLM Student Loan Trust 2013-6
1.75%, 07/15/2023^(b)	EUR	150		182	0.48%, 02/25/2019^(d)		240		240
2.00%, 07/15/2024^(b)		170		210			$		60,662
5.50%, 01/15/2028		25		42


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

Telecommunications - 2.64%					Telecommunications (continued)
AT&T Inc					Verizon Communications Inc
2.38%, 11/27/2018	$	795	$	806	0.73%, 06/09/2017^(d)		$	7,740	$	7,717
2.45%, 06/30/2020		3,555		3,520	1.35%, 06/09/2017			3,270		3,274
3.40%, 05/15/2025		1,570		1,524	2.09%, 09/14/2018^(d)			7,303		7,502
4.35%, 06/15/2045		2,205		1,909	4.52%, 09/15/2048			3,256		2,925
4.45%, 05/15/2021		4,160		4,460	5.01%, 08/21/2054			6,423		5,937
4.50%, 05/15/2035		8,380		7,838	5.15%, 09/15/2023			13,642		15,206
B Communications Ltd					6.25%, 04/01/2037			425		485
7.38%, 02/15/2021^(b)		230		250	6.40%, 09/15/2033			373		431
Bharti Airtel International Netherlands BV					VimpelCom Holdings BV
5.13%, 03/11/2023^(b)		2,400		2,546	7.50%, 03/01/2022^(b)			2,500		2,631
CC Holdings GS V LLC / Crown Castle GS					Virgin Media Finance PLC
III Corp					5.75%, 01/15/2025^(b)			600		590
3.85%, 04/15/2023		3,570		3,531	6.00%, 10/15/2024^(b)			405		408
CenturyLink Inc					Virgin Media Secured Finance PLC
5.63%, 04/01/2025		1,100		987	5.25%, 01/15/2026^(b)			380		380
Digicel Group Ltd					Vodafone Group PLC
8.25%, 09/30/2020^(b)		2,650		2,345	2.50%, 09/26/2022			2,720		2,548
Eileme 2 AB					Wind Acquisition Finance SA
11.63%, 01/31/2020 ^(b)		830		897	4.75%, 07/15/2020^(b)			1,245		1,267
Embarq Corp					7.38%, 04/23/2021^(b)			2,320		2,337
8.00%, 06/01/2036		570		600				$		112,206
Empresa Nacional de Telecomunicaciones
SA					Transportation - 0.77%
4.75%, 08/01/2026^(b)		1,150		1,118	Burlington Northern Santa Fe LLC
Frontier Communications Corp					3.85%, 09/01/2023			3,830		3,997
8.88%, 09/15/2020^(b)		395		410	CSX Corp
11.00%, 09/15/2025 ^(b)		1,360		1,426	3.95%, 05/01/2050			5,395		4,688
10.50%, 09/15/2022 ^(b)		730		757	5.50%, 04/15/2041			3,305		3,701
Goodman Networks Inc					6.25%, 03/15/2018			740		818
12.13%, 07/01/2018		780		273	7.38%, 02/01/2019			964		1,119
					Eletson Holdings
Intelsat Jackson Holdings SA					9.63%, 01/15/2022^(b)			1,595		1,463
7.25%, 10/15/2020		710		648
Intelsat Luxembourg SA					FedEx Corp
6.75%, 06/01/2018		125		111	3.20%, 02/01/2025			1,528		1,496
7.75%, 06/01/2021		3,085		1,820	4.75%, 11/15/2045			4,850		4,785
8.13%, 06/01/2023		630		373	Hornbeck Offshore Services Inc
Level 3 Communications Inc					5.00%, 03/01/2021			445		340
5.75%, 12/01/2022		855		876	Navios Maritime Acquisition Corp / Navios
					Acquisition Finance US Inc
Level 3 Financing Inc					8.13%, 11/15/2021^(b)			2,810		2,691
3.91%, 01/15/2018^(d)		295		297
5.38%, 08/15/2022		1,320		1,343	Navios Maritime Holdings Inc / Navios
5.38%, 01/15/2024^(b),(f)		365		370	Maritime Finance II US Inc
					7.38%, 01/15/2022^(b)			1,235		971
6.13%, 01/15/2021		270		285
Ooredoo International Finance Ltd					8.13%, 02/15/2019			385		281
3.88%, 01/31/2028		1,300		1,263	Navios South American Logistics Inc / Navios
					Logistics Finance US Inc
Sable International Finance Ltd					7.25%, 05/01/2022^(b)			2,610		2,196
8.75%, 02/01/2020^(b)		200		211
Sprint Capital Corp					Union Pacific Corp
6.88%, 11/15/2028		565		469	3.25%, 08/15/2025			1,560		1,584
6.90%, 05/01/2019		640		614	3.88%, 02/01/2055			1,105		973
Sprint Communications Inc					4.38%, 11/15/2065			1,780		1,696
7.00%, 08/15/2020		3,065		2,843				$		32,799
9.00%, 11/15/2018^(b)		175		192
					Trucking & Leasing - 0.06%
9.13%, 03/01/2017		236		245	Penske Truck Leasing Co Lp / PTL Finance
Sprint Corp					Corp
7.13%, 06/15/2024		1,995		1,752	3.38%, 02/01/2022^(b)			2,535		2,474
7.88%, 09/15/2023		680		629
Telefonica Emisiones SAU					TOTAL BONDS			$		2,746,958
5.46%, 02/16/2021		2,185		2,438				Principal
6.42%, 06/20/2016		595		614	CONVERTIBLE BONDS - 0.03%			Amount (000's) Value (000's)
7.05%, 06/20/2036		625		749
T-Mobile USA Inc					Banks- 0.02	%
6.00%, 03/01/2023		540		538	ING Groep NV
6.13%, 01/15/2022		185		188	6.00%, 12/29/2049^(a),(d)			700		685
6.25%, 04/01/2021		2,230		2,302
6.50%, 01/15/2024		190		193	Semiconductors - 0.01%
6.63%, 04/28/2021		585		606	Jazz Technologies Inc
Turkcell Iletisim Hizmetleri AS					8.00%, 12/31/2018			430		640
5.75%, 10/15/2025^(b)		800		799
UPCB Finance IV Ltd
5.38%, 01/15/2025^(b)		602		603	TOTAL CONVERTIBLE BONDS			$		1,325


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



SENIOR FLOATING RATE INTERESTS -			Principal			SENIOR FLOATING RATE INTERESTS			Principal
3.24	%	Amount (000's)			Value (000's)	(continued)			Amount (000's) Value (000's)

Aerospace & Defense - 0.11%						Electric - 0.01%
B/E Aerospace Inc, Term Loan B						Texas Competitive Electric Holdings Co LLC,
4.00%, 11/19/2021^(d)		$	4,555	$	4,576	Term Loan NONEXT
						4.71%, 04/25/2015^(d)		$	1,803	$	576

Apparel - 0.02%
Calceus Acquisition Inc, Term Loan B1						Electronics - 0.08%
5.00%, 09/24/2020^(d)			757		712	TTM Technologies Inc, Term Loan B
						6.00%, 05/07/2021^(d)			3,456		3,232

Automobile Manufacturers - 0.09%
FCA US LLC, Term Loan B						Entertainment - 0.34%
3.50%, 05/24/2017^(d)			446		446	CCM Merger Inc, Term Loan B
Navistar Inc, Term Loan B						4.50%, 07/30/2021^(d)			2,873		2,863
6.50%, 08/06/2020^(d)			3,615		3,398	Eldorado Resorts Inc, Term Loan B
			$		3,844	4.25%, 07/15/2022^(d)			3,119		3,116
						Lions Gate Entertainment Corp, Term Loan
Automobile Parts & Equipment - 0.03%						B
Federal-Mogul Holdings Corp, Term Loan C						5.00%, 03/11/2022^(d)			3,850		3,850
4.75%, 04/02/2021^(d)			1,280		1,164
						Peninsula Gaming LLC, Term Loan B
						4.25%, 11/30/2017^(d)			1,022		1,019
Building Materials - 0.07%						WMG Acquisition Corp, Term Loan B
Builders FirstSource Inc, Term Loan B						3.75%, 07/07/2020^(d)			3,743		3,638
6.00%, 07/22/2022^(d)			1,515		1,502				$		14,486
GYP Holdings III Corp, Term Loan B
4.75%, 03/26/2021^(d)			803		778	Food- 0.07	%
7.75%, 03/25/2022^(d)			720		704	B&G Foods Inc, Term Loan B
						0.00%, 10/21/2022^(d),(g)			545		545
			$		2,984
						Bremen Acquisition LLC, Term Loan B
Chemicals - 0.40%						4.00%, 09/19/2022^(d)			2,440		2,441
A Schulman Inc, Term Loan B									$		2,986
4.00%, 05/11/2022^(d)			1,157		1,144

Aruba Investments Inc, Term Loan B						Forest Products & Paper - 0.19%
4.50%, 02/02/2022^(d)			667		661	Caraustar Industries Inc, Term Loan B
						8.00%, 04/26/2019^(d)			1,333		1,329
Axiall Holdco Inc, Term Loan B						8.00%, 05/01/2019^(d)			4,799		4,775
4.00%, 02/25/2022^(d)			1,721		1,721
						NewPage Corp, Term Loan B
AZ Chem US Inc, Term Loan						9.50%, 02/05/2021^(d)			3,717		1,913
7.50%, 06/10/2022^(d)			3,522		3,534
AZ Chem US Inc, Term Loan B									$		8,017
4.50%, 06/10/2021^(d)			161		161	Healthcare - Products - 0.02%
Emerald Performance Materials LLC, Term						ConvaTec Inc, Term Loan B
Loan						4.25%, 06/09/2020^(d)			170		169
7.75%, 07/22/2022^(d)			3,585		3,522	Kinetic Concepts Inc, Term Loan E1
Ineos US Finance LLC, Term Loan B						4.50%, 05/04/2018^(d)			810		809
3.75%, 12/15/2020^(d)			3,223		3,134				$		978
Methanol Holdings Trinidad Ltd, Term Loan
B						Healthcare - Services - 0.23%
4.25%, 06/16/2022^(d)			3,362		3,177	DaVita HealthCare Partners Inc, Term Loan
			$		17,054	B
						3.50%, 06/18/2021^(d)			1,410		1,413
Commercial Services - 0.09%						Lantheus Medical Imaging Inc, Term Loan B
Interactive Data Corp, Term Loan B						7.00%, 06/24/2022^(d)			2,758		2,537
4.75%, 05/02/2021^(d)			1,867		1,866	MPH Acquisition Holdings LLC, Term Loan
TMS International Corp, Term Loan B						B
4.50%, 10/04/2020^(d)			1,919		1,813	3.75%, 03/19/2021^(d)			2,300		2,266
			$		3,679	Radnet Management Inc, Term Loan B
						4.28%, 10/10/2018^(d)			156		156
Computers - 0.03%						8.00%, 03/25/2021^(d)			3,545		3,403
Oberthur Technologies of America Corp,
Term Loan B2									$		9,775
4.50%, 10/18/2019^(d)			1,273		1,267	Insurance - 0.07%
						Asurion LLC, Term Loan
						8.50%, 02/19/2021^(d)			2,975		2,671
Consumer Products - 0.09%
Dell International LLC, Term Loan B2						Asurion LLC, Term Loan B1
						5.00%, 05/24/2019^(d)			209		199
4.00%, 04/29/2020^(d)			3,983		3,981
						Asurion LLC, Term Loan B2
						4.25%, 06/19/2020^(d)			344		320
Diversified Financial Services - 0.06%									$		3,190
Delos Finance Sarl, Term Loan B
3.50%, 02/26/2021^(d)			2,495		2,493	Internet - 0.03%
						Zayo Group LLC, Term Loan B
						3.75%, 05/06/2021^(d)			1,169		1,167


Schedule of Investments
Core Plus Bond Fund
October 31, 2015



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's) Value (000's)			(continued)		Amount (000's) Value (000's)

	Media- 0.20	%					Retail - 0.24%
	CCO Safari III LLC, Term Loan I						Academy Ltd, Term Loan B
	3.50%, 01/23/2023^(d)		$	950	$	949	5.00%, 06/16/2022^(d)		$	2,526	$	2,516
	iHeartCommunications Inc, Term Loan D-						Dollar Tree Inc, Term Loan B1
	EXT						3.50%, 05/26/2022^(d)			783		784
	6.94%, 01/30/2019^(d)			2,845		2,378	Michaels Stores Inc, Term Loan B
	Numericable US LLC, Term Loan B1						4.00%, 01/20/2028^(d)			2,894		2,892
	4.50%, 04/23/2020^(d)			457		450	Neiman Marcus Group LTD LLC, Term
	Numericable US LLC, Term Loan B2						Loan
	4.50%, 04/23/2020^(d)			395		390	4.25%, 10/25/2020^(d)			3,005		2,933
	Univision Communications Inc, Term Loan						PetSmart Inc, Term Loan B
	C3						4.25%, 03/11/2022^(d)			1,337		1,336
	4.00%, 03/01/2020^(d)			156		155				$		10,461
	Univision Communications Inc, Term Loan
	C4						Software - 0.14%
	4.00%, 03/01/2020^(d)			2,392		2,375	Activision Blizzard Inc, Term Loan B
							3.25%, 07/26/2020^(d)			2,364		2,369
	WideOpenWest Finance LLC, Term Loan B
	4.50%, 04/01/2019^(d)			1,361		1,337	Evergreen Skills Lux Sarl, Term Loan
							3.75%, 04/08/2021^(d)			2,375		2,328
	WideOpenWest Finance LLC, Term Loan B1
	3.75%, 07/17/2017^(d)			742		732	First Data Corp, Term Loan B
							4.20%, 03/24/2021^(d)			1,140		1,140
				$		8,766
										$		5,837
	Mining - 0.08%
	FMG Resources August 2006 Pty Ltd, Term						Telecommunications - 0.03%
	Loan B						Altice Financing SA, Delay-Draw Term Loan
	3.75%, 06/30/2019^(d)			3,972		3,352	DD
							5.50%, 07/03/2019^(d)			966		966
							NTELOS Inc, Term Loan B
	Oil & Gas - 0.09%						5.75%, 11/09/2019^(d)			230		228
	Drillships Financing Holding Inc, Term Loan									$		1,194
	B1
	6.00%, 03/31/2021^(d)			1,514		867	Trucking & Leasing - 0.03%
	Seadrill Operating LP, Term Loan B						Fly Funding II Sarl, Term Loan
	4.00%, 02/12/2021^(d)			5,081		2,952	3.50%, 08/09/2019^(d)			1,153		1,145
	Seventy Seven Operating LLC, Term Loan B
	3.75%, 06/17/2021^(d)			232		192	TOTAL SENIOR FLOATING RATE INTERESTS			$		137,855
				$		4,011	U.S. GOVERNMENT & GOVERNMENT		Principal
							AGENCY OBLIGATIONS - 35.33%		Amount (000's) Value (000's)
	Oil & Gas Services - 0.07%						Federal Home Loan Mortgage Corporation (FHLMC) -
	Navios Maritime Midstream Partners LP,						3.88	%
	Term Loan B						2.09%, 06/01/2043^(d)		$	1,386	$	1,426
	5.50%, 06/15/2020^(d)			3,032		2,998	2.24%, 12/01/2035^(d)			48		50
							2.41%, 05/01/2037^(d)			310		331
							2.49%, 01/01/2034^(d)			49		50

	Packaging & Containers - 0.05%						2.50%, 07/01/2034^(d)			16		17
	Berry Plastics Group Inc, Term Loan F
	4.00%, 09/16/2022^(d)			1,385		1,387	2.82%, 07/01/2043^(d)			6,527		6,710
	SIG Combibloc PurchaseCo Sarl, Term Loan						3.00%, 01/01/2043			4,234		4,282
	B						3.00%, 02/01/2043			1,731		1,751
	4.25%, 03/11/2022^(d)			667		666	3.50%, 06/01/2044			1,642		1,710
				$		2,053	3.50%, 05/01/2045			29,352		30,567
							3.50%, 10/01/2045			17,961		18,789
	Pharmaceuticals - 0.17%						3.50%, 11/01/2045^(h)			32,000		33,222
	DPx Holdings BV, Term Loan B						4.00%, 12/01/2041^(h)			2,100		2,227
	4.25%, 01/22/2021^(d)			2,224		2,176	4.00%, 02/01/2044			17,323		18,515
	Endo Luxembourg Finance I Co Sarl, Term						4.00%, 10/01/2044			4,489		4,798
	Loan B						4.50%, 04/01/2031			1,706		1,861
	3.75%, 06/24/2022^(d)			800		786	4.50%, 04/01/2041			10,357		11,265
	Grifols Worldwide Operations USA Inc, Term						5.00%, 03/01/2018			228		236
	Loan B						5.00%, 05/01/2018			162		168
	3.19%, 03/05/2021^(d)			1,124		1,121	5.00%, 10/01/2018			123		128
	Valeant Pharmaceuticals International Inc,						5.00%, 01/01/2019			179		188
	Term Loan BE1						5.00%, 06/01/2031			1,324		1,454
	3.75%, 08/05/2020^(d)			1,712		1,588	5.00%, 02/01/2039			1,564		1,712
	Valeant Pharmaceuticals International Inc,						5.00%, 09/01/2039			3,506		3,879
	Term Loan BF1						5.00%, 08/01/2040			3,286		3,629
	4.00%, 04/01/2022^(d)			1,746		1,621	5.00%, 03/01/2041			4,073		4,515
				$		7,292	5.50%, 03/01/2018			70		72
							5.50%, 08/01/2023			849		930
	REITS- 0.11	%
	iStar Inc, Term Loan A2						5.50%, 05/01/2033			114		127
	7.00%, 03/19/2017^(d)			4,585		4,585	5.50%, 10/01/2033			89		99
							5.50%, 12/01/2033			1,143		1,288
							5.50%, 11/01/2036			981		1,106
							5.50%, 04/01/2038			205		227
							5.50%, 04/01/2038			388		439



U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)

Federal Home Loan Mortgage Corporation (FHLMC)
(continued)					Federal National Mortgage Association (FNMA) (continued)

					3.00%, 05/01/2043	$	1,283	$	1,300
5.50%, 08/01/2038	$	744	$	853
					3.00%, 05/01/2043		8,376		8,488
5.50%, 03/01/2040		1,177		1,322
					3.00%, 08/01/2043		5,349		5,419

6.00%, 07/01/2017		6		6	3.00%, 12/01/2045^(h)		16,400		16,536

6.00%, 03/01/2022		32		36	3.36%, 04/01/2041^(d)		1,258		1,332

6.00%, 07/01/2023		405		458	3.50%, 11/01/2026^(h)		14,450		15,256
6.00%, 06/01/2028		5		5
					3.50%, 10/01/2033		5,332		5,619
6.00%, 01/01/2029		2		2
					3.50%, 08/01/2034		3,986		4,186
6.00%, 03/01/2031		16		18
					3.50%, 01/01/2041		416		434

6.00%, 12/01/2031		54		61	3.50%, 12/01/2041^(h)		49,000		50,881
6.00%, 12/01/2032		55		63
					3.50%, 05/01/2043		588		616
6.00%, 02/01/2033		149		168
					3.50%, 07/01/2043		3,008		3,155
6.00%, 12/01/2033		64		73

6.00%, 10/01/2036^(d)		469		535	3.50%, 09/01/2044		9,355		9,788

6.00%, 12/01/2037^(d)		357		402	3.50%, 03/01/2045		12,899		13,513

6.00%, 01/01/2038^(d)		81		91	3.50%, 04/01/2045		5,782		6,036
					4.00%, 08/01/2020		1,469		1,536
6.00%, 01/01/2038		531		614
					4.00%, 01/01/2029		3,603		3,806
6.00%, 07/01/2038		2,154		2,464
					4.00%, 02/01/2031		622		669
6.50%, 06/01/2017		23		24
					4.00%, 03/01/2034		1,312		1,420
6.50%, 03/01/2029		1		1
					4.00%, 04/01/2034		6,787		7,341
6.50%, 03/01/2029		10		12
					4.00%, 05/01/2044		6,552		7,017
6.50%, 05/01/2029		14		16
					4.00%, 02/01/2045		473		504
6.50%, 04/01/2031		6		7
					4.00%, 03/01/2045		7,333		7,810
6.50%, 06/01/2031		1		1
					4.00%, 10/01/2045		4,595		4,907

6.50%, 09/01/2031		4		5	4.00%, 12/01/2042^(h)		45,755		48,616
6.50%, 02/01/2032		1		1
					4.50%, 04/01/2024		2,336		2,421
6.50%, 02/01/2032		4		5
					4.50%, 04/01/2044		5,876		6,369
6.50%, 05/01/2032		17		20
					4.50%, 07/01/2044		14,294		15,558
6.50%, 04/01/2035		115		132
					4.50%, 12/01/2044		18,482		20,052
6.50%, 10/01/2035		86		98
					5.00%, 03/01/2018		77		80
7.00%, 12/01/2029		9		10
					5.00%, 09/01/2033		7,405		8,152
7.00%, 06/01/2030		14		16
					5.00%, 02/01/2035		4,023		4,486
7.00%, 12/01/2030		11		13
					5.00%, 05/01/2039		2,537		2,811
7.00%, 09/01/2031		2		3
					5.00%, 12/01/2039		136		150
7.50%, 09/01/2030		2		2
					5.00%, 04/01/2040		737		816
7.50%, 09/01/2030		2		3
					5.00%, 06/01/2040		224		247
7.50%, 01/01/2031		14		17
					5.00%, 05/01/2041		4,131		4,564
7.50%, 03/01/2031		3		4
					5.00%, 06/01/2041		4,721		5,270
7.50%, 02/01/2032		7		7
					5.00%, 10/01/2041		5,854		6,468
8.00%, 09/01/2030		53		55
					5.50%, 09/01/2017		12		12

		$		165,391	5.50%, 10/01/2017		14		14

Federal National Mortgage Association (FNMA) - 11.27%					5.50%, 06/01/2020		189		197

1.75%, 10/01/2034^(d)		179		186	5.50%, 09/01/2020		862		928

1.96%, 09/01/2038^(d)		1,585		1,671	5.50%, 02/01/2023		61		68

2.16%, 12/01/2032^(d)		102		106	5.50%, 06/01/2023		178		199

2.23%, 02/01/2036^(d)		40		41	5.50%, 07/01/2023		5		6

2.24%, 04/01/2036^(d)		276		293	5.50%, 07/01/2033		236		266

2.26%, 07/01/2033^(d)		961		1,013	5.50%, 09/01/2033		276		311

2.29%, 12/01/2036^(d)		514		548	5.50%, 08/01/2036		2,366		2,653

2.31%, 01/01/2033^(d)		91		95	5.50%, 02/01/2037		138		156

2.31%, 03/01/2035^(d)		262		279	5.50%, 04/01/2038		4,303		4,849

2.38%, 07/01/2034^(d)		344		367	5.50%, 12/01/2038		1,803		2,049

2.49%, 08/01/2035^(d)		280		299	5.50%, 05/01/2040		1,149		1,283

2.50%, 04/01/2028		4,465		4,582	5.50%, 05/01/2040		1,141		1,275

2.50%, 06/01/2028		295		303	6.00%, 02/01/2023		25		29

2.50%, 09/01/2029		1,421		1,451	6.00%, 02/01/2038^(d)		982		1,113

2.50%, 03/01/2030		15,579		15,885	6.00%, 05/01/2038		156		177

2.50%, 11/01/2030^(h)		19,600		19,952	6.00%, 08/01/2038		716		813

2.67%, 04/01/2033^(d)		181		192	6.00%, 08/01/2038		238		270

2.82%, 03/01/2035^(d)		4,013		4,295	6.00%, 03/01/2040		6,074		6,898

3.00%, 11/01/2026^(h)		27,000		28,085	6.50%, 02/01/2017		2		2

3.00%, 07/01/2028		7,955		8,298	6.50%, 03/01/2017		1		1

3.00%, 10/01/2029		1,676		1,748	6.50%, 08/01/2017		19		20

3.00%, 08/01/2034		8,899		9,218	6.50%, 05/01/2022		10		11

3.00%, 10/01/2034		4,475		4,627	6.50%, 12/01/2031		8		9

3.00%, 12/01/2040		231		233	6.50%, 02/01/2032		4		4

3.00%, 11/01/2042		776		787	6.50%, 02/01/2032		2		2

3.00%, 03/01/2043		6,530		6,619	6.50%, 04/01/2032		8		9

3.00%, 04/01/2043		840		851	6.50%, 06/01/2032		2		3

3.00%, 04/01/2043		35,337		35,816	6.50%, 08/01/2032		21		24

					6.50%, 07/01/2037		652		745

					6.50%, 07/01/2037		495		595


U.S. GOVERNMENT & GOVERNMENT			Principal			U.S. GOVERNMENT & GOVERNMENT			Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)		Value (000's)		AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)

Federal National Mortgage Association (FNMA) (continued)						U.S. Treasury (continued)
6.50%, 12/01/2037		$	638	$	730		1.38%, 12/31/2018⁽ⁱ⁾	$		73,220	$	73,803
6.50%, 02/01/2038			533		642		1.38%, 01/31/2020			85,000		84,821
6.50%, 03/01/2038			296		338		1.38%, 03/31/2020			13,650		13,602
6.50%, 09/01/2038			1,006		1,193		1.38%, 04/30/2020			7,750		7,718
7.00%, 02/01/2032			18		19		1.50%, 01/31/2022			2,025		1,987
7.00%, 03/01/2032			50		58		1.63%, 12/31/2019			13,000		13,115
7.50%, 08/01/2032			12		14		1.75%, 09/30/2019			24,580		24,966
			$		479,454		1.75%, 10/31/2020			1,000		1,009
Government National Mortgage Association (GNMA) -							1.75%, 04/30/2022			1,230		1,222
6.38	%						1.88%, 11/30/2021			30,000		30,161
1.50%, 07/20/2043^(d)			1,262		1,280		2.00%, 05/31/2021			9,290		9,450
2.00%, 04/20/2043^(d)			1,493		1,545		2.13%, 08/31/2020			6,075		6,242
3.00%, 06/20/2043			5,585		5,735		2.13%, 12/31/2021			95		97
3.00%, 01/20/2045			2,979		3,047		2.13%, 05/15/2025			12,185		12,159
3.00%, 11/01/2045			37,000		37,792		2.38%, 05/31/2018			350		363
3.00%, 11/01/2045^(h)			6,600		6,727		2.38%, 08/15/2024			325		332
3.50%, 11/01/2041^(h)			15,200		15,904		2.50%, 05/15/2024			4,500		4,651
3.50%, 03/15/2042			2,079		2,191		2.50%, 02/15/2045			10,000		9,108
3.50%, 04/15/2042			568		595		2.63%, 04/30/2016			350		354
3.50%, 04/15/2042			1,995		2,093		3.00%, 11/15/2044			25,380		25,669
3.50%, 10/15/2042			2,369		2,503		3.00%, 05/15/2045			1,580		1,599
3.50%, 06/15/2043			12,074		12,727		3.13%, 02/15/2042			25		26
3.50%, 01/20/2045			1,384		1,452		3.25%, 12/31/2016			150		155
3.50%, 11/01/2045			68,175		71,431		3.38%, 05/15/2044			495		539
4.00%, 02/15/2042			1,745		1,878		3.75%, 11/15/2043^(j)			37,035		43,278
4.00%, 04/15/2045			7,626		8,141		3.88%, 08/15/2040			44,545		52,693
4.00%, 11/01/2041^(h)			25,000		26,627		4.38%, 05/15/2040			12,140		15,475
4.50%, 06/20/2025			5,720		6,147		4.50%, 02/15/2036			175		227
4.50%, 09/15/2039			644		711		4.75%, 02/15/2041			70		94
4.50%, 03/15/2040			5,998		6,514		6.25%, 05/15/2030			100		147
4.50%, 10/20/2040			1,999		2,181					$		473,727
4.50%, 04/15/2041			4,192		4,595
						U.S. Treasury Bill - 1.95%
4.50%, 01/20/2044			6,173		6,654		0.06%, 01/28/2016^(k)			83,000		82,983
4.50%, 07/20/2045			7,906		8,526
4.50%, 08/20/2045			11,491		12,400
4.50%, 11/01/2041^(h)			10,000		10,814	U.S. Treasury Inflation-Indexed Obligations - 0.72%
5.00%, 11/15/2033			3,229		3,598		0.13%, 04/15/2019			2,136		2,132
5.00%, 06/15/2034			69		77		0.13%, 01/15/2022			4,633		4,523
5.00%, 10/20/2039			345		383		0.13%, 07/15/2024			8,832		8,456
5.00%, 07/20/2040			483		523		0.25%, 01/15/2025			16,038		15,410
5.00%, 02/15/2042			2,528		2,798					$		30,521
5.50%, 10/15/2033			1,123		1,284	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
5.50%, 05/20/2035			128		144	OBLIGATIONS				$		1,503,557
5.50%, 02/15/2038			1,520		1,706	Total Investments				$		4,443,267
6.00%, 07/20/2028			56		63	Liabilities in Excess of Other Assets, Net - (4.41)%				$		(187,706	)
6.00%, 11/20/2028			47		53	TOTAL NET ASSETS - 100.00%				$		4,255,561
6.00%, 01/20/2029			53		62
6.00%, 07/20/2029			12		14
6.00%, 08/15/2031			21		24	(a)	Perpetual security. Perpetual securities pay an indefinite stream of
6.00%, 01/15/2032			5		6		interest, but they may be called by the issuer at an earlier date.
6.00%, 02/15/2032			42		48	(b)	Security exempt from registration under Rule 144A of the Securities Act of
6.00%, 02/15/2033			50		57		1933. These securities may be resold in transactions exempt from
6.00%, 12/15/2033			53		62		registration, normally to qualified institutional buyers. At the end of the
6.50%, 03/20/2028			10		11		period, the value of these securities totaled $808,777 or 19.01% of net
6.50%, 05/20/2029			9		10		assets.
6.50%, 02/20/2032			4		5	(c)	Fair value of these investments is determined in good faith by the Manager
6.50%, 10/15/2032			27		32		under procedures established and periodically reviewed by the Board of
6.50%, 12/15/2032			94		108		Directors. At the end of the period, the fair value of these securities totaled
7.00%, 06/15/2031			18		22		$18,507 or 0.43% of net assets.
7.00%, 07/15/2031			2		2	(d)	Variable Rate. Rate shown is in effect at October 31, 2015.
7.00%, 06/15/2032			145		171	(e)	Payment in kind; the issuer has the option of paying additional securities
8.00%, 01/20/2031			7		8		in lieu of cash.
			$		271,481	(f)	Security purchased on a when-issued basis.
						(g)	This Senior Floating Rate Note will settle after October 31, 2015, at which
U.S. Treasury - 11.13%
							time the interest rate will be determined.
0.50%, 09/30/2016			350		350
						(h)	Security was purchased in a "to-be-announced" ("TBA") transaction. See
0.50%, 04/30/2017			2,100		2,096
							Notes to Financial Statements for additional information.
0.63%, 08/15/2016			16,445		16,473
						(i)	Security or a portion of the security was pledged to cover margin
0.88%, 07/15/2018			11,265		11,232
							requirements for swap and/or swaption contracts. At the end of the period,
1.25%, 11/30/2018			250		251
							the value of these securities totaled $6,967 or 0.16% of net assets.
1.25%, 01/31/2019			300		301
1.25%, 01/31/2020			8,019		7,962


Portfolio Summary (unaudited)
Sector			Percent
Mortgage Securities			29.31			%
Government			14.63			%
Financial			14.30			%
Asset Backed Securities			11.07			%
Consumer, Non-cyclical			7.10			%
Consumer, Cyclical			6.38			%
Communications			5.75			%
Energy			4.15			%
Utilities			3.23			%
Industrial			3.11			%
Basic Materials			2.42			%
Technology			2.14			%
Exchange Traded Funds			0.74			%
Diversified			0.08			%
Liabilities in Excess of Other Assets, Net			(4.41			)%
TOTAL NET ASSETS			100.00			%

Exchange Cleared Credit Default Swaps

Buy Protection
		(Pay)/									Upfront			Unrealized
		Receive			Expiration						Premiums			Appreciation/
Reference Entity		Fixed Rate			Date			Notional Amount			Paid/(Received)			(Depreciation)			Fair Value
CDX.NA.HY.24			(5.00	)%	06/20/2020				$64,449		$(3,708		) $	(14	)	$	(3,722	)
Total										$	(3,708		) $	(14	)	$	(3,722	)

Amounts in thousands


Foreign Currency Contracts

												Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept					In Exchange For			Fair Value				Asset			Liability
Brown Brothers Harriman & Co	12/09/2015	JPY	58,679,734				$		494	$	487	$		—		$	(7	)
Total												$		—		$	(7	)
												Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver					In Exchange For			Fair Value				Asset			Liability
Brown Brothers Harriman & Co	12/09/2015	AUD	406,383				$		280	$	289	$		—		$	(9	)
Brown Brothers Harriman & Co	12/09/2015	CAD	619,347						467		474			—			(7	)
Brown Brothers Harriman & Co	12/09/2015	CHF			61,761				63		62			1			—
Brown Brothers Harriman & Co	12/09/2015	DKK	828,501						124		122			2			—
Brown Brothers Harriman & Co	12/09/2015	EUR	7,027,169						7,843		7,730			113			—
Brown Brothers Harriman & Co	12/09/2015	GBP	1,010,734						1,535		1,558			—			(23	)
Brown Brothers Harriman & Co	12/09/2015	JPY	622,702,304						5,244		5,164			80			—
Brown Brothers Harriman & Co	12/09/2015	MXN	3,805,447						224		230			—			(6	)
Brown Brothers Harriman & Co	12/09/2015	PLN	371,756						98		96			2			—
Brown Brothers Harriman & Co	12/09/2015	SEK	849,973						100		100			—			—
Total												$		198		$	(45	)

Amounts in thousands except contracts


Futures Contracts

																Unrealized
Type	Long/Short		Contracts					Notional Value						Fair Value		Appreciation/(Depreciation)
US 10 Year Note; December 2015		Short			185		$		23,500	$				23,622	$		(122	)
US 2 Year Note; December 2015		Short			52				11,351					11,370			(19	)
US 5 Year Note; December 2015		Short			40				4,767					4,791			(24	)
US Long Bond; December 2015		Short			47				7,283					7,353			(70	)
US Ultra Bond; December 2015		Long			430				68,575					68,693			118
Total														$			(117	)

Amounts in thousands except contracts


COMMON STOCKS - 97.71%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.40%				Commercial Services - 0.80%
WPP PLC	1,095,469	$	24,557	Ashtead Group PLC	1,356,705	$	20,860
				Ritchie Bros Auctioneers Inc	197,800		5,134
				TAL Education Group ADR ^(a)	606,342		23,314
Aerospace & Defense - 0.89%					$		49,308
Safran SA	513,965		39,038
Thales SA	221,304		15,998	Computers - 0.69%
	$		55,036	Cap Gemini SA	318,690		28,337
				TDK Corp	226,831		14,448
Agriculture - 1.05%					$		42,785
Imperial Tobacco Group PLC	543,974		29,292
KT&G Corp	359,229		35,893	Diversified Financial Services - 2.00%
	$		65,185	Intermediate Capital Group PLC	1,269,232		11,047
				Macquarie Group Ltd	976,440		59,122
Airlines - 1.29%				ORIX Corp	2,984,190		43,580
easyJet PLC	183,188		4,935	Paragon Group of Cos PLC/The	1,554,090		10,037
International Consolidated Airlines Group SA	2,408,464		21,534
(a)					$		123,786
Ryanair Holdings PLC ADR	680,632		53,218	Electric - 2.20%
	$		79,687	Enel SpA	7,259,117		33,474
				Iberdrola SA	7,652,725		54,573
Automobile Manufacturers - 3.62%				Korea Electric Power Corp	1,063,085		47,865
Daimler AG	456,752		39,607		$		135,912
Maruti Suzuki India Ltd	447,449		30,453
Renault SA	461,940		43,526	Electrical Components & Equipment - 0.52%
Toyota Motor Corp	1,799,537		110,247	Mabuchi Motor Co Ltd	321,653		15,915
	$		223,833	Prysmian SpA	747,050		16,133
					$		32,048
Automobile Parts & Equipment - 1.42%
Bridgestone Corp	977,097		35,831	Electronics - 3.41%
Continental AG	216,665		52,028	Alps Electric Co Ltd	1,016,933		31,565
	$		87,859	Hon Hai Precision Industry Co Ltd	20,908,526		55,576
				Hoya Corp	1,277,404		52,714
Banks - 11.15%				Murata Manufacturing Co Ltd	370,841		52,790
Axis Bank Ltd	3,578,963		25,938	Omron Corp	551,928		18,276
Bank of Ireland ^(a)	52,208,971		19,413
					$		210,921
Bank of Kyoto Ltd/The	1,441,274		14,556
Bank of Montreal	705,633		41,034	Energy - Alternate Sources - 0.31%
China Construction Bank Corp	46,162,272		33,456	Vestas Wind Systems A/S	328,903		19,176
Commonwealth Bank of Australia	511,245		27,760
Danske Bank A/S	1,153,245		31,730
HDFC Bank Ltd ^(b)	342,386		6,871	Engineering & Construction - 1.39%
				Acciona SA	157,121		13,181
ICICI Bank Ltd ADR	3,291,824		28,375
				Promotora y Operadora de Infraestructura	1,135,107		14,271
KBC Groep NV	376,357		22,883	SAB de CV ^(a)
Mediobanca SpA	3,088,142		31,057
				Skanska AB	1,034,769		20,192
Mitsubishi UFJ Financial Group Inc	10,604,276		68,583
				Vinci SA	566,055		38,110
Mizuho Financial Group Inc	27,136,830		55,898
					$		85,754
Nordea Bank AB	4,545,021		50,148
Royal Bank of Canada	869,759		49,734	Food - 3.46%
Skandinaviska Enskilda Banken AB	3,422,283		35,937	Delhaize Group	451,626		41,906
Sumitomo Mitsui Financial Group Inc	962,756		38,408	Ezaki Glico Co Ltd	337,089		16,100
Svenska Handelsbanken AB	1,782,217		24,205	Greencore Group PLC	2,638,636		12,269
Toronto-Dominion Bank/The	1,701,634		69,856	Gruma SAB de CV	1,458,587		22,385
Yes Bank Ltd	1,107,721		12,811	JBS SA	6,170,300		22,799
	$		688,653	Nestle SA	1,106,331		84,495
				Uni-President Enterprises Corp	8,175,840		13,823

Beverages - 1.32%					$		213,777
Ambev SA	5,485,200		27,152
Anheuser-Busch InBev SA/NV	456,767		54,503	Forest Products & Paper - 0.71%
	$		81,655	Mondi PLC	1,362,743		31,512
				Smurfit Kappa Group PLC	430,690		12,257
Biotechnology - 0.92%
China Biologic Products Inc ^(a)	105,363		12,005		$		43,769
CSL Ltd	440,617		29,288	Hand & Machine Tools - 0.33%
Genmab A/S ^(a)	157,375		15,530	Fuji Electric Co Ltd	4,577,737		20,424
	$		56,823

Building Materials - 0.81%				Healthcare - Services - 1.32%
CRH PLC	1,334,543		36,528	Fresenius SE & Co KGaA	727,006		53,422
Kingspan Group PLC	558,032		13,529	Netcare Ltd	4,466,070		12,700
	$		50,057	Ramsay Health Care Ltd	347,929		15,294
					$		81,416
Chemicals - 1.60%
Evonik Industries AG	711,744		25,844	Home Builders - 3.11%
Givaudan SA ^(a)	14,546		26,011	Barratt Developments PLC	4,916,273		46,313
Lonza Group AG ^(a)	191,363		28,088	Persimmon PLC ^(a)	1,213,154		37,204
Yara International ASA	421,787		19,160	Sekisui House Ltd	2,693,668		44,840
	$		99,103


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Home Builders (continued)				Private Equity - 0.48%
Taylor Wimpey PLC	20,972,493	$	63,890	3i Group PLC	3,828,205	$	29,489
	$		192,247

Home Furnishings - 1.06%				Real Estate - 2.79%
Howden Joinery Group PLC	2,946,496		21,015	Brookfield Asset Management Inc	2,680,402		93,638
Steinhoff International Holdings Ltd	7,233,966		44,225	Cheung Kong Property Holdings Ltd	3,162,840		22,131
	$		65,240	Deutsche Wohnen AG	908,277		25,603
				Vonovia SE	542,840		18,095
Insurance - 6.53%				Wheelock & Co Ltd	2,771,631		12,919
AXA SA	1,735,366		46,314		$		172,386
BB Seguridade Participacoes SA	3,322,900		22,919
Direct Line Insurance Group PLC	8,864,150		53,768	REITS - 0.47%
Fairfax Financial Holdings Ltd	55,071		27,119	Mirvac Group	10,456,642		13,366
Hannover Rueck SE	495,032		57,231	Segro PLC	2,228,428		15,437
Legal & General Group PLC	8,393,549		33,801		$		28,803
PICC Property & Casualty Co Ltd	7,091,775		16,092

Prudential PLC	1,893,096		44,216	Retail - 6.39%
				Alimentation Couche-Tard Inc	2,041,646		87,827
Sampo Oyj	637,204		31,145
				CK Hutchison Holdings Ltd	4,361,489		59,724
SCOR SE	701,410		26,080
				Dollarama Inc	1,142,616		77,185
Tokio Marine Holdings Inc	1,161,550		44,756
				GS Retail Co Ltd	362,706		18,282
	$		403,441	Next PLC	279,685		34,444
Internet - 1.45%				Pandora A/S	587,858		67,837
Auto Trader Group PLC ^(a),(c)	3,909,467		23,376	Travis Perkins PLC	462,435		13,630
Tencent Holdings Ltd	2,526,232		47,618	Wal-Mart de Mexico SAB de CV	13,584,878		35,982
Vipshop Holdings Ltd ADR^(a)	899,189		18,451		$		394,911
	$		89,445
				Semiconductors - 3.60%
Investment Companies - 0.92%				ams AG	461,722		14,775
Investor AB	1,544,334		57,153	ARM Holdings PLC	2,278,547		35,884
				Dialog Semiconductor PLC ^(a)	804,891		29,777
				Infineon Technologies AG	1,937,788		23,869
Leisure Products & Services - 0.24%				Samsung Electronics Co Ltd	46,975		56,343
Yamaha Motor Co Ltd	665,617		14,925	Taiwan Semiconductor Manufacturing Co Ltd	14,633,544		61,661
					$		222,309

Media - 1.77%
ITV PLC	18,142,529		70,434	Software - 0.83%
				HCL Technologies Ltd	1,131,594		15,072
Mediaset Espana Comunicacion SA	923,963		11,211	UBISOFT Entertainment ^(a)	1,198,668		35,913
ProSiebenSat.1 Media SE	518,102		27,996
					$		50,985
	$		109,641

				Telecommunications - 7.98%
Mining - 0.36%				Bharti Infratel Ltd	3,485,622		20,716
BHP Billiton PLC	1,390,507		22,226
				BT Group PLC	10,024,316		71,589
				China Mobile Ltd	5,061,546		60,687
Miscellaneous Manufacturers - 1.26%				China Telecom Corp Ltd	63,083,444		32,906
FUJIFILM Holdings Corp	1,181,820		47,141	Deutsche Telekom AG	3,674,076		68,821
Largan Precision Co Ltd	392,000		30,462	KDDI Corp	2,096,438		50,730
	$		77,603	Nippon Telegraph & Telephone Corp	1,646,663		60,369
				NTT DOCOMO Inc	1,768,700		34,446
Oil & Gas - 3.96%				Orange SA	3,260,938		57,496
Bharat Petroleum Corp Ltd	1,373,747		18,272	Proximus SADP	1,010,277		34,961
Caltex Australia Ltd	1,721,284		38,533		$		492,721
Canadian Natural Resources Ltd	1,465,500		33,981
Lukoil PJSC ADR	670,025		24,339	Toys, Games & Hobbies - 0.48%
Statoil ASA	2,057,812		33,263	Nintendo Co Ltd	183,869		29,395
Suncor Energy Inc	1,448,332		43,098
TOTAL SA	1,095,650		52,984
				Transportation - 1.91%
	$		244,470	Canadian National Railway Co	1,110,648		67,840
Pharmaceuticals - 9.17%				East Japan Railway Co	403,800		38,392
Actelion Ltd ^(a)	227,786		31,620	Euronav NV	791,794		11,845
Bayer AG	466,084		62,146		$		118,077
BTG PLC ^(a)	1,887,708		16,028

Novartis AG	1,342,940		121,655	Water - 0.52%
				Veolia Environnement SA	1,377,981		32,011
Novo Nordisk A/S	1,877,560		99,705
Roche Holding AG	465,305		126,330
				TOTAL COMMON STOCKS	$		6,036,550
Shire PLC	999,207		75,670
Teva Pharmaceutical Industries Ltd ADR	564,929		33,438	INVESTMENT COMPANIES - 1.09%	Shares Held Value (000's)
	$		566,592	Publicly Traded Investment Fund - 1.09%
				Goldman Sachs Financial Square Funds -	67,488,457		67,488
Pipelines - 0.82%				Government Fund
Keyera Corp	463,860		14,314
TransCanada Corp	1,088,927		36,642
	$		50,956	TOTAL INVESTMENT COMPANIES	$		67,488


COMMON STOCKS - 98.05%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Aerospace & Defense - 2.63%				Gas - 1.19%
Lockheed Martin Corp	302,735	$	66,550	Sempra Energy	635,981	$	65,131
Raytheon Co	662,501		77,778
	$		144,328	Healthcare - Products - 2.08%
Apparel - 1.18%				Becton Dickinson and Co	286,532		40,836
VF Corp	953,117		64,354	Medtronic PLC	992,544		73,369
					$		114,205

Automobile Manufacturers - 1.35%				Insurance - 6.18%
PACCAR Inc	1,407,987		74,131	ACE Ltd	1,220,063		138,526
				Allstate Corp/The	782,116		48,397
				Chubb Corp/The	86,800		11,228
Automobile Parts & Equipment - 2.95%				MetLife Inc	2,391,646		120,491
Autoliv Inc	768,263		93,144	Swiss Re AG ADR	854,740		19,881
Johnson Controls Inc	1,512,028		68,314		$		338,523
	$		161,458
				Machinery - Diversified - 2.05%
Banks - 9.50%				Deere & Co	1,438,124		112,174
Australia & New Zealand Banking Group Ltd	633,020		12,382
ADR
Bank of Nova Scotia/The	1,003,904		47,163	Media - 0.21%
Grupo Financiero Santander Mexico SAB de	1,676,667		15,341	Walt Disney Co/The	100,966		11,484
CV ADR
JPMorgan Chase & Co	1,974,017		126,831	Mining - 0.45%
M&T Bank Corp	337,570		40,458	BHP Billiton Ltd ADR	748,916		24,632
PNC Financial Services Group Inc/The	1,131,085		102,092
US Bancorp	1,885,941		79,549
Wells Fargo & Co	1,781,359		96,443	Miscellaneous Manufacturers - 2.01%
	$		520,259	3M Co	207,894		32,683
				Parker-Hannifin Corp	739,531		77,429
Beverages - 0.76%					$		110,112
Coca-Cola Co/The	984,189		41,680
				Oil & Gas - 9.60%
				Chevron Corp	671,002		60,981
Chemicals - 1.79%				Cimarex Energy Co	582,623		68,784
Air Products & Chemicals Inc	291,294		40,484	Crescent Point Energy Corp	1,576,787		21,488
EI du Pont de Nemours & Co	723,906		45,896	Exxon Mobil Corp	899,018		74,385
PPG Industries Inc	110,620		11,533	Marathon Oil Corp	674,986		12,406
	$		97,913	Marathon Petroleum Corp	2,124,605		110,055
Computers - 4.43%				Occidental Petroleum Corp	1,262,408		94,100
Accenture PLC - Class A	174,081		18,661	Royal Dutch Shell PLC - B shares ADR	1,590,717		83,815
Apple Inc	1,203,638		143,835		$		526,014
EMC Corp/MA	2,198,075		57,634	Pharmaceuticals - 10.62%
International Business Machines Corp	162,528		22,767	Abbott Laboratories	2,005,037		89,826
	$		242,897	GlaxoSmithKline PLC ADR	316,254		13,618
Distribution & Wholesale - 0.82%				Johnson & Johnson	623,537		62,996
Genuine Parts Co	493,524		44,792	Merck & Co Inc	1,806,696		98,754
				Novartis AG ADR	722,254		65,313
				Pfizer Inc	3,030,488		102,491
Diversified Financial Services - 5.91%				Roche Holding AG ADR	2,625,626		89,035
BlackRock Inc	317,166		111,633	Teva Pharmaceutical Industries Ltd ADR	1,005,668		59,526
Discover Financial Services	1,686,875		94,836		$		581,559
FNF Group	3,326,904		117,373
	$		323,842	Pipelines - 2.47%
				Enterprise Products Partners LP	2,243,346		61,984
Electric - 5.17%				Kinder Morgan Inc/DE	2,686,267		73,469
Eversource Energy	1,395,176		71,070		$		135,453
NextEra Energy Inc	544,880		55,938
WEC Energy Group Inc	1,386,110		71,468	Private Equity - 1.16%
Xcel Energy Inc	2,375,030		84,622	KKR & Co LP	3,702,460		63,497
	$		283,098

Electrical Components & Equipment - 0.61%				REITS - 4.25%
Emerson Electric Co	712,961		33,673	American Capital Agency Corp	2,690,526		47,972
				Annaly Capital Management Inc	5,540,526		55,128
				Digital Realty Trust Inc	1,753,729		129,706
Electronics - 1.11%					$		232,806
Garmin Ltd	572,673		20,312
Honeywell International Inc	391,903		40,476	Retail - 2.22%
	$		60,788	Costco Wholesale Corp	256,175		40,506
				Starbucks Corp	1,141,879		71,447
Food - 2.80%				Tiffany & Co	118,980		9,809
Kraft Heinz Co/The	711,758		55,496		$		121,762
Kroger Co/The	2,587,349		97,802
	$		153,298	Semiconductors - 4.99%
				Applied Materials Inc	3,765,619		63,150
				Maxim Integrated Products Inc	1,208,549		49,526


				Schedule of Investments
				Equity Income Fund
				October 31, 2015


COMMON STOCKS (continued)	Shares Held	Value(000			's)

Semiconductors (continued)
Microchip Technology Inc	1,995,842		$	96,379
Taiwan Semiconductor Manufacturing Co Ltd	2,926,971			64,276
ADR
		$		273,331

Software - 0.90%
Microsoft Corp	933,580			49,144

Telecommunications - 2.45%
BCE Inc	1,814,949			78,424
Verizon Communications Inc	1,192,793			55,918
		$		134,342

Toys, Games & Hobbies - 2.14%
Hasbro Inc	1,526,569			117,286


Transportation - 2.07%
Norfolk Southern Corp	504,792			40,399
Union Pacific Corp	440,540			39,362
United Parcel Service Inc	327,376			33,726
		$		113,487
TOTAL COMMON STOCKS		$		5,371,453
INVESTMENT COMPANIES - 1.94%	Shares Held	Value(000			's)

Publicly Traded Investment Fund - 1.94%
Morgan Stanley Institutional Liquidity Funds -	106,450,241			106,450
Government Portfolio

TOTAL INVESTMENT COMPANIES		$		106,450
Total Investments		$		5,477,903
Other Assets in Excess of Liabilities, Net - 0.01%		$		406
TOTAL NET ASSETS - 100.00%		$		5,478,309




Portfolio Summary (unaudited)
Sector				Percent
Financial				27.00	%
Consumer, Non-cyclical				16.26	%
Energy				12.07	%
Consumer, Cyclical				10.66	%
Industrial				10.48	%
Technology				10.32	%
Utilities				6.36	%
Communications				2.66	%
Basic Materials				2.24	%
Exchange Traded Funds				1.94	%
Other Assets in Excess of Liabilities, Net				0.01	%
TOTAL NET ASSETS				100.00	%


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



COMMON STOCKS - 20.58%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.00%				Commercial Services (continued)
Multiplus SA	59,600	$	531	Jiangsu Expressway Co Ltd	7,302,000	$	9,873
				KAR Auction Services Inc	31,165		1,197
				Macquarie Infrastructure Corp	16,782		1,335
Aerospace & Defense - 0.02%				Programmed Maintenance Services Ltd	603,374		1,245
BAE Systems PLC	350,695		2,372	Sabre Corp	37,000		1,085
				Transurban Group	2,227,349		16,505
Agriculture - 0.42%				Travelport Worldwide Ltd	229,152		3,105
Imperial Tobacco Group PLC	368,973		19,868		$		84,033
Philip Morris International Inc	320,446		28,328
				Computers - 0.06%
	$		48,196	Accenture PLC - Class A	46,617		4,997
Airlines - 0.01%				Amdocs Ltd	21,993		1,310
Air New Zealand Ltd	480,488		945		$		6,307
				Diversified Financial Services - 0.07%
Apparel - 0.02%				Aircastle Ltd	54,851		1,243
Gunze Ltd	353,000		1,121	Ashford Inc ^(a),(b)	1,934		124
Peak Sport Products Co Ltd	2,449,000		736	Century Tokyo Leasing Corp	42,700		1,449
	$		1,857	Intermediate Capital Group PLC	150,756		1,312
				Tokai Tokyo Financial Holdings Inc	152,000		925
Automobile Manufacturers - 0.15%				Urban & Civic PLC	621,938		2,629
Daimler AG	90,149		7,817		$		7,682
Toyota Motor Corp	160,300		9,821
	$		17,638	Electric - 2.82%
				AES Corp/VA	523,759		5,735
Automobile Parts & Equipment - 0.04%				Alliant Energy Corp	79,462		4,690
Bridgestone Corp	135,200		4,958	Ameren Corp	70,732		3,090
				American Electric Power Co Inc	64,055		3,629
Banks - 1.04%				Avista Corp	40,585		1,374
Australia & New Zealand Banking Group Ltd	435,439		8,422	China Power International Development Ltd	838,000		527
Bank of Communications Co Ltd	788,000		581	China Resources Power Holdings Co Ltd	844,000		1,909
Bank of Montreal	135,700		7,891	CMS Energy Corp	260,000		9,378
Bank of Nova Scotia/The	166,000		7,806	Consolidated Edison Inc	55,197		3,629
China Construction Bank Corp	5,761,000		4,175	Dominion Resources Inc/VA	250,000		17,858
Commonwealth Bank of Australia	189,614		10,296	DTE Energy Co ^(a)	307,744		25,109
DBS Group Holdings Ltd	238,700		2,935	DUET Group	4,397,243		7,372
FNB Corp/PA	206,857		2,786	Duke Energy Corp	194,446		13,897
Gunma Bank Ltd/The	141,000		888	Edison International	100,000		6,052
JPMorgan Chase & Co ^(a)	150,879		9,694	Enel SpA	974,628		4,494
KBC Groep NV	29,609		1,800	Eversource Energy ^(a)	398,132		20,281
Mizuho Financial Group Inc	4,066,500		8,376	Exelon Corp	332,688		9,288
National Australia Bank Ltd	418,661		8,940	Huadian Power International Corp Ltd	562,000		411
National Penn Bancshares Inc	251,837		3,032	Huaneng Power International Inc	1,748,000		1,892
PacWest Bancorp	101,221		4,559	Iberdrola SA	1,630,052		11,624
Royal Bank of Canada	127,374		7,284	Infraestructura Energetica Nova SAB de CV	170,000		817
Toronto-Dominion Bank/The	154,409		6,339	Iren SpA	791,158		1,303
Webster Financial Corp	15,710		583	ITC Holdings Corp ^(a)	883,863		28,920
Wells Fargo & Co ^(a)	394,856		21,378	NextEra Energy Inc ^(a)	276,318		28,367
	$		117,765	PG&E Corp	346,510		18,504
				Pinnacle West Capital Corp ^(a)	70,000		4,446
Beverages - 0.06%				Portland General Electric Co	27,285		1,012
PepsiCo Inc	65,670		6,711	Power Assets Holdings Ltd	1,057,500		10,518
				PPL Corp ^(a)	799,193		27,492
				Public Service Enterprise Group Inc	80,122		3,308
Biotechnology - 0.14%				SCANA Corp ^(a)	368,000		21,793
Gilead Sciences Inc	146,712		15,864
				Southern Co/The	115,000		5,187
				SSE PLC	463,837		10,791
Building Materials - 0.01%				WEC Energy Group Inc ^(a)	120,000		6,187
Universal Forest Products Inc	15,618		1,134		$		320,884

				Electrical Components & Equipment - 0.01%
Chemicals - 0.09%				Kung Long Batteries Industrial Co Ltd	216,000		799
Dow Chemical Co/The	77,354		3,997
Evonik Industries AG	37,394		1,358
LyondellBasell Industries NV	46,813		4,349	Electronics - 0.07%
	$		9,704	Hon Hai Precision Industry Co Ltd	1,911,300		5,080
				Hu Lane Associate Inc	304,000		1,403
Commercial Services - 0.74%				Pegatron Corp	100,000		245
Abertis Infraestructuras SA	814,071		13,518	Siix Corp	44,600		1,255
Adecco SA ^(b)	16,100		1,197
					$		7,983
Atlantia SpA	232,280		6,432
CCR SA	3,378,100		10,616	Energy - Alternate Sources - 0.12%
Cengage Learning Holdings II Inc	34,465		853	NextEra Energy Partners LP	210,000		5,514
COSCO Pacific Ltd ^(c)	5,906,000		7,641	Pattern Energy Group Inc	325,000		7,602
Dai Nippon Printing Co Ltd	233,000		2,410		$		13,116
Hutchison Port Holdings Trust	12,676,539		7,021


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value(000's)

Engineering & Construction - 0.20%				Insurance (continued)
Aena SA ^(b),(d)	13,306	$	1,485	Phoenix Group Holdings	79,331	$	1,043
BBA Aviation PLC	2,716,260		7,980	SCOR SE	81,151		3,018
China Machinery Engineering Corp	873,000		758	Swiss Re AG	79,146		7,347
Ferrovial SA	48,916		1,234	Travelers Cos Inc/The	68,433		7,725
Fraport AG Frankfurt Airport Services	78,332		4,966	Validus Holdings Ltd	34,586		1,532
Worldwide					$		72,716
Grupo Aeroportuario del Pacifico SAB de CV	328,503		2,963
NCC AB	45,821		1,417	Internet - 0.04%
Vinci SA	27,750		1,868	Cogent Communications Holdings Inc	155,000		4,762
	$		22,671

				Investment Companies - 0.02%
Entertainment - 0.02%				New Mountain Finance Corp	86,033		1,199
Regal Entertainment Group	44,753		867
				THL Credit Inc	70,369		806
Vail Resorts Inc	11,865		1,355
					$		2,005
	$		2,222

				Lodging - 0.03%
Food - 0.02%				Accor SA	54,000		2,681
Cal-Maine Foods Inc	19,710		1,054
				Echo Entertainment Group Ltd	198,900		719
Select Harvests Ltd	156,418		1,127
					$		3,400
	$		2,181
				Media - 0.42%
Forest Products & Paper - 0.03%				Charter Communications Inc ^(b)	84,000		16,039
Mondi PLC	50,411		1,166
				Comcast Corp - Class A	175,000		10,958
Stora Enso OYJ	190,624		1,768	Houghton Mifflin Harcourt Co ^(b)	360,119		7,055
	$		2,934	ProSiebenSat.1 Media SE	63,640		3,439
Gas - 0.88%				Time Warner Cable Inc	56,000		10,606
Atmos Energy Corp	59,630		3,757		$		48,097
Gas Natural SDG SA	210,095		4,545

National Grid PLC	2,284,570		32,543	Mining - 0.11%
National Grid PLC ADR ^(a)	105,000		7,518	BHP Billiton Ltd	271,096		4,446
NiSource Inc ^(a)	435,715		8,348	BHP Billiton PLC	347,018		5,547
				Boliden AB	29,676		568
Rubis SCA	53,529		4,290
				Independence Group NL	252,297		494
Sempra Energy	190,000		19,458	Mirabela Nickel Ltd ^(b),(c),(e)	26,307,311		1,557
Snam SpA	1,069,858		5,537
UGI Corp	203,802		7,473		$		12,612
Vectren Corp	30,240		1,375	Miscellaneous Manufacturers - 0.06%
Western Gas Equity Partners LP ^(a)	109,666		4,730	AO Smith Corp	7,801		599
	$		99,574	General Electric Co	214,388		6,200
				Largan Precision Co Ltd	7,000		544
Hand & Machine Tools - 0.01%
Basso Industry Corp ^(b),(c)	396,900		791		$		7,343
				Office Furnishings - 0.00%
Healthcare - Products - 0.01%				Steelcase Inc	28,865		560
CR Bard Inc	4,037		752
Fisher & Paykel Healthcare Corp Ltd	161,618		851	Oil & Gas - 0.87%
	$		1,603	Antero Midstream Partners LP ^(e)	261,494		6,229
				Canadian Natural Resources Ltd	152,400		3,534

Healthcare - Services - 0.02%				Chevron Corp	40,000		3,635
HealthSouth Corp	32,935		1,147	ConocoPhillips ^(a)	132,551		7,072
Quest Diagnostics Inc	21,663		1,472
				EQT GP Holdings LP	70,085		1,853
	$		2,619	Exxon Mobil Corp ^(a)	344,888		28,536
Holding Companies - Diversified - 0.07%				Royal Dutch Shell PLC ADR	460,000		24,132
China Merchants Holdings International Co	2,286,000		7,592	Royal Dutch Shell PLC - B Shares	204,345		5,351
Ltd				Statoil ASA	126,541		2,045
				Tesoro Corp	12,298		1,315
				TORC Oil & Gas Ltd	190,900		968
Home Builders - 0.06%				TOTAL SA	98,769		4,776
Berkeley Group Holdings PLC	26,724		1,364	Valero Energy Partners LP ^(e)	158,463		7,921
Galliford Try PLC	37,190		857	Whitecap Resources Inc	231,660		2,057
Sekisui House Ltd	303,200		5,047		$		99,424
	$		7,268
				Oil & Gas Services - 0.06%
Insurance - 0.64%				Targa Resources Corp	119,788		6,846
Allianz SE	36,987		6,475
AXA SA	503,929		13,449
Beazley PLC	208,820		1,167	Packaging & Containers - 0.02%
Direct Line Insurance Group PLC	1,447,782		8,782	Sonoco Products Co	51,820		2,212
Everest Re Group Ltd	6,057		1,078
First American Financial Corp	106,363		4,056	Pharmaceuticals - 0.44%
Hannover Rueck SE	91,457		10,573	AstraZeneca PLC	62,091		3,957
Horace Mann Educators Corp	16,200		555	Kaken Pharmaceutical Co Ltd	19,400		1,341
Muenchener Rueckversicherungs-Gesellschaft	25,086		5,002	Merck & Co Inc	149,201		8,155
AG in Muenchen				Novartis AG	29,580		2,680
Old Republic International Corp	50,661		914	Pfizer Inc ^(a)	837,473		28,323


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Pharmaceuticals (continued)				REITS (continued)
Recordati SpA	39,262	$	976	Colony Capital Inc	21,211	$	431
Roche Holding AG	11,259		3,057	Crombie Real Estate Investment Trust	270,000		2,682
SCI Pharmtech Inc	530,000		1,298	Crown Castle International Corp	358,483		30,636
	$		49,787	CubeSmart ^(a)	233,066		6,484
				CyrusOne Inc	33,812		1,193
Pipelines - 3.56%				CYS Investments Inc ^(a)	136,793		1,056
Buckeye Partners LP ^(a)	364,709		24,738
				DCT Industrial Trust Inc ^(a)	106,592		3,957
Columbia Pipeline Group Inc ^(a)	458,813		9,530
				DDR Corp	438,530		7,367
Columbia Pipeline Partners LP	299,597		4,057	Digital Realty Trust Inc	82,688		6,116
DCP Midstream Partners LP ^(a)	176,883		5,082
				Duke Realty Corp	542,252		11,224
Enbridge Energy Partners LP	459,889		12,849	Education Realty Trust Inc	85,000		3,052
Enbridge Inc	204,248		8,730	EPR Properties ^(a)	122,069		6,935
Energy Transfer Equity LP ^(a)	1,007,601		21,714
				Equity One Inc ^(a)	230,872		6,137
EnLink Midstream LLC	153,582		3,026	Equity Residential	113,046		8,741
Enterprise Products Partners LP ^(a)	1,714,147		47,362
				Essex Property Trust Inc ^(a)	28,959		6,384
EQT Midstream Partners LP	198,144		14,671	Eurocommercial Properties NV	44,000		2,098
Genesis Energy LP ^(a)	194,696		7,848
				Fortune Real Estate Investment Trust	2,465,000		2,551
Kinder Morgan Inc/DE	523,224		14,311	Frasers Centrepoint Trust	1,600,000		2,231
Magellan Midstream Partners LP ^(a)	598,318		38,178
MarkWest Energy Partners LP ^(a)	349,410		15,262	General Growth Properties Inc	246,930		7,149
MPLX LP ^(a)	159,333		6,181	GEO Group Inc/The	192,089		6,198
				Goodman Group	1,300,000		5,578
ONEOK Inc	121,070		4,106	Granite Real Estate Investment Trust	26,400		769
ONEOK Partners LP	236,616		7,531	Great Portland Estates PLC	236,548		3,240
Phillips 66 Partners LP	198,433		12,033	Hospitality Properties Trust ^(a)	294,910		7,915
Plains All American Pipeline LP ^(a)	781,440		24,787
				Hospitality Property Fund Ltd	200,000		176
Shell Midstream Partners LP	225,709		7,726	Hyprop Investments Ltd	121,497		1,102
Spectra Energy Corp	337,864		9,653	Immobiliare Grande Distribuzione SIIQ SpA	986,436		985
Spectra Energy Partners LP ^(e)	362,188		15,625
Sunoco Logistics Partners LP ^(a)	596,189		17,313	Japan Hotel REIT Investment Corp	1,677		1,165
Tesoro Logistics LP ^(a),(e)	323,362		18,131	Japan Logistics Fund Inc	850		1,590
				Kenedix Retail REIT Corp	328		641
TransCanada Corp	270,644		9,107	Klepierre	209,006		9,899
Western Gas Partners LP ^(a),(e)	297,146		15,190
Williams Cos Inc/The ^(a)	657,720		25,940	Land Securities Group PLC	341,856		7,043
				LaSalle Hotel Properties	75,000		2,206
Williams Partners LP	130,344		4,406	LibertyPropertyTrust ^(a)	147,200		5,008
	$		405,087	LondonMetric Property PLC	3,270,000		8,516
Real Estate - 0.62%				Medical Properties Trust Inc	421,070		4,758
Aeon Mall Co Ltd	250,000		4,182	Merlin Properties Socimi SA	436,666		5,596
Atrium European Real Estate Ltd ^(b)	227,000		941	Mirvac Group	6,133,543		7,840
Beijing Capital Land Ltd	1,914,000		919	Monmouth Real Estate Investment Corp	105,030		1,093
Citycon OYJ ^(b)	2,255,857		5,936	National Storage Affiliates Trust	140,033		2,106
Croesus Retail Trust	9,103,842		5,425	New Residential Investment Corp	120,209		1,458
Dalian Wanda Commercial Properties Co Ltd	790,000		5,273	NewRiver Retail Ltd	1,119,373		5,693
(d)				Nomura Real Estate Master Fund Inc	2,212		2,803
Fabege AB	220,900		3,509	Omega Healthcare Investors Inc	221,059		7,631
Frasers Centrepoint Ltd	1,500,000		1,744	Piedmont Office Realty Trust Inc	260,000		5,039
Kerry Properties Ltd	554,000		1,640	Prologis Inc	334,250		14,283
				Public Storage ^(a)	80,097		18,379
KWG Property Holding Ltd	845,000		609
Mitsui Fudosan Co Ltd	481,400		13,101	Pure Industrial Real Estate Trust	420,000		1,426
New World Development Co Ltd	6,503,000		6,936	QTS Realty Trust Inc	19,284		829
Religare Health Trust	3,839,400		2,722	Retail Properties of America Inc	355,000		5,314
Sponda OYJ	655,000		2,782	Sabra Health Care REIT Inc	239,280		5,427
Sun Hung Kai Properties Ltd	796,933		10,645	Saul Centers Inc	42,000		2,355
TLG Immobilien AG	180,000		3,386	Scentre Group	1,000,000		2,933
Vukile Property Fund Ltd	400,000		554	Segro PLC	417,009		2,889
	$		70,304	Senior Housing Properties Trust	160,000		2,430
				Shopping Centres Australasia Property Group	575,142		840
REITS - 4.01%				Simon Property Group Inc ^(a)	134,857		27,168
Agree Realty Corp	250,640		8,116	Spring Real Estate Investment Trust	14,736,000		5,892
AIMS AMP Capital Industrial REIT	1,525,150		1,522	STAG Industrial Inc	135,713		2,785
Alexandria Real Estate Equities Inc	79,620		7,145	Stockland	2,091,000		6,001
Altarea SCA	21,400		4,031	STORE Capital Corp	148,476		3,366
American Tower Corp	145,593		14,884	Summit Hotel Properties Inc	488,340		6,388
Apartment Investment & Management Co	253,890		9,950	Sun Communities Inc	153,460		10,285
Ashford Hospitality Prime Inc ^(a)	10,574		155	UDR Inc	50,863		1,753
Ashford Hospitality Trust Inc ^(a)	258,350		1,777	Vastned Retail NV	86,000		4,171
Assura PLC	5,257,816		4,557	Ventas Inc	146,437		7,867
Big Yellow Group PLC	100,000		1,154	Welltower Inc	60,696		3,937
Boston Properties Inc ^(a)	45,577		5,736	Wereldhave NV	151,920		9,471
BritishLandCoPLC/The	175,000		2,344	Westfield Corp	870,000		6,312
Campus Crest Communities Inc ^(a)	271,981		1,803	Workspace Group PLC	265,000		3,903
Canadian Apartment Properties REIT	43,451		895	WP GLIMCHER Inc	421,000		4,892
Care Capital Properties Inc	12,859		424		$		456,626
Champion REIT	16,000,000		8,365


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)		Shares Held	Value(000			's)

Retail - 0.15%				Water- 0.30	%
Darden Restaurants Inc	87,100	$	5,391	American Water Works Co Inc ^(a)		306,000		$	17,552
Foot Locker Inc	22,686		1,537	CiadeSaneamentoBasicodoEstadodeSao		798,010			3,504
Man Wah Holdings Ltd	1,448,000		1,654	Paulo ADR
Reject Shop Ltd/The	112,876		920	Suez Environnement Co		228,000			4,329
Wal-Mart de Mexico SAB de CV	1,527,200		4,045	Veolia Environnement SA		379,198			8,809
Wal-Mart Stores Inc	61,541		3,523				$		34,194
	$		17,070	TOTAL COMMON STOCKS			$		2,341,497
				INVESTMENT COMPANIES - 3.85%		Shares Held	Value(000			's)
Savings & Loans - 0.04%
Berkshire Hills Bancorp Inc	49,338		1,411	Publicly Traded Investment Fund - 3.85%
New York Community Bancorp Inc	64,086		1,059	BlackRock Liquidity Funds FedFund Portfolio		50,517,908			50,518
Provident Financial Services Inc	85,628		1,740	Morgan Stanley Institutional Liquidity Funds -		387,386,890			387,387
	$		4,210	Government Portfolio
							$		437,905
Semiconductors - 0.02%
Analog Devices Inc	9,913		596	TOTAL INVESTMENT COMPANIES			$		437,905
Powertech Technology Inc	440,000		970
Silicon Motion Technology Corp ADR	28,114		894	CONVERTIBLE PREFERRED STOCKS -0.04	%	Shares Held	Value(000			's)
	$		2,460	Banks- 0.04	%
				Wells Fargo & Co ^(f)		3,902			4,639
Software - 0.24%
Blackbaud Inc	13,337		836
Hansen Technologies Ltd	256,474		557	TOTAL CONVERTIBLE PREFERRED STOCKS			$		4,639
Microsoft Corp	495,609		26,089	PREFERRED STOCKS - 2.15%		Shares Held	Value(000			's)
	$		27,482	Banks- 0.79	%
				AgriBank FCB ^(f)		33,000			3,453
Storage & Warehousing - 0.06%				Bank of America Corp 6.63%; Series I ^(f)		18,146			474
Safestore Holdings PLC	1,268,258		6,352	Bank of New York Mellon Corp/The ^(f)		48,715			1,252
Sumitomo Warehouse Co Ltd/The	132,000		700
				Barclays Bank PLC 8.13% ^(f)		169,800			4,462
	$		7,052	Citigroup Inc 6.88%; Series K ^(f)		163,700			4,508
Supranational Bank - 0.00%				Citigroup Inc 7.13%; Series J ^(f)		223,000			6,148
Banco Latinoamericano de Comercio Exterior	20,451		553	City National Corp/CA ^(f)		19,590			569
SA				CoBank ACB 6.20% ^(f)		7,000			719
				CoBank ACB 6.25% ^(d),(f)		50,000			5,172
				Deutsche Bank Contingent Capital Trust II ^(f)		366,970			9,475
Telecommunications - 1.23%				Fifth Third Bancorp ^(f)		209,585			5,847
AT&T Inc	280,000		9,383
BCE Inc ^(a)	250,000		10,802	GMAC Capital Trust I		157,000			4,055
				Goldman Sachs Group Inc/The ^(f)		32,200			802
Bezeq The Israeli Telecommunication Corp	547,273		1,173	ING Groep NV 6.13% ^(f)		146,000			3,727
Ltd				JPMorgan Chase & Co ^(f)		24,800			612
Cable & Wireless Communications PLC	3,911,429		4,429	JPMorgan Chase & Co 6.10% ^(f)		34,400			871
CenturyLink Inc ^(a)	250,000		7,052
				M&T Bank Corp - Series A ^(f)		1,505			1,554
Chunghwa Telecom Co Ltd	872,000		2,672	Morgan Stanley - Series E ^(f)		4,021			112
Cisco Systems Inc	575,817		16,612	PNC Financial Services Group Inc/The ^(f)		234,700			6,536
Cleveland Unlimited Inc ^(b),(c),(e)	1		10
				Royal Bank of Scotland Group PLC 5.75%;		218,454			5,394
Deutsche Telekom AG	104,663		1,960	Series L ^(f)
Far EasTone Telecommunications Co Ltd	2,599,000		5,639	State Street Corp 5.25%; Series C ^(f)		244,850			6,263
Freenet AG	47,039		1,587	State Street Corp 5.90%; Series D ^(f)		65,000			1,730
Frontier Communications Corp	500,000		2,570	State Street Corp 6.00% ^(f)		1,580			41
HKT Trust & HKT Ltd	4,039,637		4,838	TCF Financial Corp ^(f)		48,227			1,302
Infrastrutture Wireless Italiane SpA ^(b),(d)	182,470		947
				US Bancorp ^(f)		364,991			9,782
KDDI Corp	466,200		11,281	Valley National Bancorp ^(f)		184,000			4,826
Level 3 Communications Inc ^(b)	180,000		9,171
				Wells Fargo & Co 6.63% ^(f)		1,861			52
Nippon Telegraph & Telephone Corp	159,600		5,851
NTT DOCOMO Inc	238,800		4,651				$		89,738
Orange SA	371,137		6,544	Diversified Financial Services - 0.05%
Taiwan Mobile Co Ltd	602,000		1,895	Affiliated Managers Group Inc 6.38%		22,111			576
Telenor ASA	183,708		3,461	Charles Schwab Corp/The ^(f)		165,953			4,300
T-Mobile US Inc ^(b)	122,000		4,623	General Electric Capital Corp 4.88%		13,477			345
Verizon Communications Inc ^(a)	375,000		17,580
							$		5,221
Vodafone Group PLC ADR	150,000		4,945
	$		139,676	Electric - 0.13%
				Duke Energy Corp		3,569			90
Transportation - 0.43%				Entergy Arkansas Inc 4.90%		13,312			333
Canadian National Railway Co	77,885		4,757	Entergy Arkansas Inc 5.75%		68,278			1,724
CEVA Group PLC ^(b)	123		77	Entergy Louisiana LLC 4.70%		172,915			4,167
CSX Corp	120,919		3,264	Entergy Louisiana LLC 5.88%		6,008			152
East Japan Railway Co	50,100		4,763	Entergy New Orleans Inc		52,335			1,309
Fukuyama Transporting Co Ltd	143,000		777	Integrys Holding Inc		2,759			70
Kamigumi Co Ltd	594,000		5,103	Interstate Power & Light Co ^(f)		98,856			2,546
Kansas City Southern	38,215		3,163	NextEra Energy Capital Holdings Inc - Series		201,389			4,924
Union Pacific Corp ^(a)	292,182		26,106	I
Wisdom Marine Lines Co Ltd ^(b)	948,000		1,075				$		15,315
	$		49,085


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	PREFERRED STOCKS (continued)		Shares Held Value (000's)						Principal
							BONDS (continued)		Amount (000's) Value (000's)
	Food- 0.01	%
	Dairy Farmers of America Inc ^(b),(d),(f)			10,000	$	1,017	Aerospace & Defense (continued)
							LMI Aerospace Inc
							7.38%, 07/15/2019		$	4,307	$	4,232
	Insurance - 0.55%
	Aegon NV 6.38% ^(f)			331,071		8,475	StandardAero Aviation Holdings Inc
							10.00%, 07/15/2023 ^(d)			5,050		5,101
	Aflac Inc			225,135		5,750
	Allstate Corp/The 6.63%; Series E ^(f)			122,903		3,342	TransDigm Inc
	Allstate Corp/The 6.75%; Series C ^(f)			43,356		1,182	5.50%, 10/15/2020			19,945		19,995
							6.00%, 07/15/2022			2,540		2,565
	American Financial Group Inc/OH 5.75%			9,619		249	6.50%, 05/15/2025^(d)			3,650		3,709
	American Financial Group Inc/OH 6.38%			22,964		609
	Arch Capital Group Ltd ^(f)			92,770		2,492				$		44,610
	Aspen Insurance Holdings Ltd 5.95% ^(f)			197,787		5,042	Agriculture - 0.25%
	Aspen Insurance Holdings Ltd 7.25% ^(f)			132,920		3,544	Vector Group Ltd
	Axis Capital Holdings Ltd 6.88% ^(f)			138,578		3,747	7.75%, 02/15/2021			26,256		28,028
	Delphi Financial Group Inc 7.38%			291,374		7,175
	Hartford Financial Services Group Inc/The			151,051		4,652
	PartnerRe Ltd 7.25% ^(f)			127,947		3,657	Automobile Manufacturers - 0.06%
	Protective Life Corp 6.25%			127,353		3,321	Fiat Chrysler Finance Europe
	Prudential PLC ^(b)			2,800		73	4.75%, 07/15/2022		EUR	1,000		1,166
	Reinsurance Group of America Inc			22,411		649	6.75%, 10/14/2019			2,000		2,507
	RenaissanceRe Holdings Ltd - Series E ^(f)			34,385		854	Peugeot SA
	Torchmark Corp			82,341		2,108	6.50%, 01/18/2019			2,100		2,630
	XLIT Ltd ^(f)			6,623		5,464				$		6,303
				$		62,385	Automobile Parts & Equipment - 0.11%
	Media- 0.01	%					Gestamp Funding Luxembourg SA
	Comcast Corp			60,128		1,585	5.88%, 05/31/2020			2,500		2,862
							Metalsa SA de CV
							4.90%, 04/24/2023^(d)		$	2,083		1,838
	REITS- 0.16	%					Rhino Bondco S.P.A
	Digital Realty Trust Inc - Series E ^(f)			19,740		511	7.25%, 11/15/2020		EUR	1,500		1,761
	Equity Residential ^(f)			20,702		1,319	Schaeffler Holding Finance BV
	Kimco Realty Corp 5.50% ^(f)			75,613		1,867	5.75%, 11/15/2021			3,550		4,200
	National Retail Properties Inc ^(f)			71,632		1,895	Tupy Overseas SA
	Prologis Inc - Series Q ^(f)			92,034		5,933	6.63%, 07/17/2024^(d)		$	1,525		1,363
	PS Business Parks Inc - Series T ^(f)			115,362		2,991				$		12,024
	Public Storage Inc 5.20%; Series W ^(f)			30,634		757
	Public Storage Inc 5.88%; Series A ^(f)			58,951		1,536	Banks- 2.54	%
	Public Storage Inc 6.00%; Series Z ^(f)			20,000		526	ABN AMRO Bank NV
	Public Storage Inc 6.38%; Series Y ^(f)			12,871		344	6.25%, 09/13/2022^(g)			2,000		2,115
	Ventas Realty LP / Ventas Capital Corp			12,284		325	Agricola Senior Trust
	Vornado Realty Trust - Series J ^(f)			4,267		111	6.75%, 06/18/2020^(d)			2,660		2,643
				$		18,115	Banco Davivienda SA
							5.88%, 07/09/2022^(d)			3,390		3,445
	Savings & Loans - 0.01%						Banco do Brasil SA/Cayman
	Astoria Financial Corp ^(f)			2,980		77	9.00%, 06/29/2049^(d),(f)			300		207
	First Niagara Financial Group Inc ^(f)			39,846		1,097	9.00%, 06/29/2049^(f),(g)			1,200		828
				$		1,174	Banco Inbursa SA Institucion de Banca
							Multiple
	Telecommunications - 0.29%						4.13%, 06/06/2024^(d)			3,160		3,085
	Centaur Funding Corp 9.08% ^(d)			11,900		14,696
							Banco Santander SA
	Qwest Corp 7.00%			44,419		1,160	6.38%, 05/29/2049^(f),(g)			2,000		1,955
	Qwest Corp 7.38%			283,876		7,327

	Qwest Corp 7.50%			136,946		3,588	Bancolombia SA
							5.13%, 09/11/2022			6,346		6,289
	Telephone & Data Systems Inc 6.88%			25,608		655
							Bank of America Corp
	Telephone & Data Systems Inc 7.00%			121,991		3,123	6.25%, 09/29/2049^(f),(g)			4,600		4,665
	Verizon Communications Inc			79,510		2,115	6.50%, 10/29/2049^(f),(g)			700		732
				$		32,664	Bank of New York Mellon Corp/The
	Transportation - 0.15%						4.95%, 12/29/2049^(f),(g)			4,000		4,000
	CEVA Group PLC ^(b)			267		167	Barclays PLC
	Seaspan Corp			704,000		17,480	3.65%, 03/16/2025			4,200		4,062
				$		17,647	6.63%, 06/29/2049^(f),(g)			1,961		1,935
							8.25%, 12/29/2049^(f),(g)			4,000		4,259
	TOTAL PREFERRED STOCKS			$		244,861
							BBVA Bancomer SA/Texas
				Principal			6.75%, 09/30/2022^(d)			2,615		2,934
	BONDS- 64.69	%	Amount (000's) Value (000's)
							BNP Paribas SA
	Advertising - 0.19%						7.20%, 06/29/2049^(d),(f)			4,400		5,038
	MDC Partners Inc						7.37%, 12/29/2049^(d),(f),(g)			3,000		3,105
	6.75%, 04/01/2020^(d)		$	20,800	$	21,164	Cadence Financial Corp
							4.88%, 06/28/2019^(d),(e)			3,500		3,482
	Aerospace & Defense - 0.39%						CITIC Ltd
	Aerojet Rocketdyne Holdings Inc						6.38%, 04/10/2020			889		998
	7.13%, 03/15/2021			4,300		4,520	6.63%, 04/15/2021			1,574		1,808
	Finmeccanica SpA						6.80%, 01/17/2023			1,200		1,394
	4.50%, 01/19/2021		EUR	3,700		4,488	6.88%, 01/21/2018			700		763


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	Principal					Principal
BONDS (continued)	Amount (000's)	Value(000	's)	BONDS (continued)		Amount (000's) Value (000's)

Banks (continued)				Banks (continued)
CITIC Ltd (continued)				Trade & Development Bank of Mongolia
7.88%, 04/15/2049^(f),(g)	$1,450	$ 1,479		LLC
8.62%, 05/29/2049^(f),(g)	3,300	3,743		9.38%, 05/19/2020^(d)		$	1,905	$	1,901
Citigroup Capital III				Turkiye Vakiflar Bankasi TAO
7.63%, 12/01/2036	8,600	10,675		6.87%, 02/03/2025^(d),(g)			10,913		10,582
Citigroup Inc				UBS Preferred Funding Trust V
5.95%, 12/29/2049^(f)	4,900	4,728		6.24%, 05/29/2049^(f)			5,000		5,063
6.30%, 12/29/2049^(f),(g)	6,500	6,429		Wells Fargo & Co
Citizens Financial Group Inc				7.98%, 12/31/2049^(f),(g)			12,000		12,780
5.50%, 12/29/2049^(d),(f),(g)	6,000	5,895					$		288,600
Cooperatieve Centrale Raiffeisen-
Boerenleenbank BA/Netherlands				Biotechnology - 0.05%
11.00%, 12/29/2049 ^(d),(f),(g)	14,015	17,431		Concordia Healthcare Corp
				9.50%, 10/21/2022^(d)			5,900		5,782
Corestates Capital III
0.89%, 02/15/2027^(d),(g)	500	419
Credit Agricole SA				Building Materials - 0.30%
8.38%, 12/31/2049^(d),(f),(g)	1,900	2,152		Building Materials Corp of America
Credit Suisse Group AG				6.00%, 10/15/2025^(d)			2,500		2,656
7.50%, 12/29/2049^(d),(f),(g)	1,000	1,056		Cemex Finance LLC
Development Bank of Kazakhstan JSC				9.38%, 10/12/2022^(d)			1,932		2,101
5.50%, 12/20/2015	200	201		Cemex SAB de CV
Finansbank AS/Turkey				6.13%, 05/05/2025^(d)			4,366		4,137
6.25%, 04/30/2019^(d)	4,957	5,176		HeidelbergCement Finance Luxembourg SA
Fleet Capital Trust V				7.50%, 04/03/2020		EUR	2,000		2,711
1.34%, 12/18/2028^(g)	7,500	6,937		9.50%, 12/15/2018			1,000		1,363
Goldman Sachs Group Inc/The				Reliance Intermediate Holdings LP
5.38%, 12/29/2049^(f),(g)	4,700	4,653		6.50%, 04/01/2023^(d)		$	18,515		18,978
5.70%, 12/29/2049^(f),(g)	2,000	2,027		Votorantim Cimentos SA
HSBC Capital Funding LP/Jersey				7.25%, 04/05/2041^(d)			2,642		2,213
10.18%, 12/29/2049 ^(d),(f),(g)	4,000	6,040					$		34,159
ICICI Bank Ltd
6.37%, 04/30/2022^(g)	4,100	4,207		Chemicals - 0.39%
Industrial & Commercial Bank of China Ltd				Axalta Coating Systems US Holdings Inc /
6.00%, 12/29/2049^(f),(g)	1,515	1,595		Axalta Coating Systems Dutch Holding B
Itau Unibanco Holding SA/Cayman Island				5.75%, 02/01/2021		EUR	3,500		4,003
2.85%, 05/26/2018^(d)	850	823		Braskem America Finance Co
5.65%, 03/19/2022^(d)	5,280	4,990		7.13%, 07/22/2041^(d)		$	800		636
JPMorgan Chase & Co				Braskem Finance Ltd
5.30%, 12/29/2049^(f),(g)	8,700	8,726		5.75%, 04/15/2021			2,488		2,333
6.13%, 12/29/2049^(f),(g)	5,500	5,617		6.45%, 02/03/2024			3,610		3,249
6.75%, 01/29/2049^(f),(g)	19,000	20,615		7.38%, 10/29/2049^(d),(f)			1,533		1,246
KeyCorp Capital III				Huntsman International LLC
7.75%, 07/15/2029	795	952		5.13%, 04/15/2021		EUR	1,000		1,065
M&T Bank Corp				INEOS Group Holdings SA
6.45%, 12/29/2049^(f),(g)	535	571		5.75%, 02/15/2019			2,200		2,412
6.88%, 12/29/2049^(f)	1,900	1,908		Mexichem SAB de CV
				5.88%, 09/17/2044^(d)		$	1,947		1,740
Morgan Stanley
5.55%, 12/29/2049^(f),(g)	1,250	1,248		OCP SA
				4.50%, 10/22/2025^(d)			5,000		4,795
National Savings Bank
5.15%, 09/10/2019^(d)	500	480		5.63%, 04/25/2024^(d)			794		829
Nordea Bank AB				PSPC Escrow Corp
5.50%, 09/29/2049^(d),(f),(g)	4,100	4,026		6.00%, 02/01/2023		EUR	5,000		4,530
5.50%, 09/29/2049^(f),(g)	9,000	8,838		Sinochem Offshore Capital Co Ltd
6.13%, 12/29/2049^(d),(f),(g)	2,000	1,975		3.25%, 04/29/2019^(d)		$	7,298		7,401
PNC Financial Services Group Inc/The				TPC Group Inc
6.75%, 07/29/2049^(f),(g)	8,500	9,161		8.75%, 12/15/2020^(d)			12,365		10,110
Provident Funding Associates LP / PFG							$		44,349
Finance Corp				Coal- 0.61	%
6.75%, 06/15/2021^(d)	16,920	16,243
				CONSOL Energy Inc
Royal Bank of Scotland Group PLC				5.88%, 04/15/2022			6,545		4,140

7.50%, 12/29/2049(f),(g)	600	621		8.00%, 04/01/2023^(d)			6,750		4,708
8.00%, 12/29/2049^(f),(g)	600	627

Societe Generale SA				Foresight Energy LLC / Foresight Energy
				Finance Corp
1.07%, 12/29/2049(d),(f),(g)	3,000	2,760		7.88%, 08/15/2021^(d)			56,880		41,806
7.88%, 12/29/2049^(d),(f),(g)	2,000	2,006

8.00%, 09/29/2049^(d),(f),(g)	1,000	1,010
				Natural Resource Partners LP / NRP Finance
8.25%, 09/29/2049^(f),(g)	7,500	7,895		Corp
				9.13%, 10/01/2018			3,075		2,245
Standard Chartered PLC				Peabody Energy Corp
5.70%, 03/26/2044	6,100	6,254		6.25%, 11/15/2021			27,505		3,644
7.01%, 07/29/2049^(d),(f)	4,150	4,482

TC Ziraat Bankasi AS				SunCoke Energy Partners LP / SunCoke
				Energy Partners Finance Corp
4.25%, 07/03/2019(d)	1,870	1,861		7.38%, 02/01/2020^(d)			6,000		4,980


		Principal						Principal

BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)


Coal (continued)					Commercial Mortgage Backed Securities (continued)

SunCoke Energy Partners LP / SunCoke					COMM 2014-CCRE21 Mortgage Trust

Energy Partners Finance Corp	(continued)				1.42%, 12/10/2047^(d),(g)		$	20,879	$	2,153

7.38%, 02/01/2020^(d)	$	9,538	$	7,917	COMM 2014-LC17 Mortgage Trust

		$		69,440	3.11%, 10/10/2047^(d)			4,383		2,994

					3.69%, 10/10/2047^(d),(g)			3,000		2,411

Commercial Mortgage Backed Securities - 16.50%					Comm 2014-UBS2 Mortgage Trust

Banc of America Commercial Mortgage Trust					5.02%, 03/10/2047^(d),(g)			13,190		12,398

2006-6					COMM 2014-UBS3 Mortgage Trust

5.48%, 10/10/2045		5,000		5,016	1.29%, 06/10/2047^(d),(g)			60,721		4,507

Banc of America Merrill Lynch Commercial					4.81%, 06/10/2047^(d),(g)			21,861		19,338

Mortgage Inc					COMM 2014-UBS5 Mortgage Trust

4.77%, 07/10/2043		14,250		13,140	3.49%, 09/10/2047^(d),(g)			10,000		7,634

4.85%, 07/10/2043		9,500		7,625	COMM 2014-UBS6 Mortgage Trust
5.34%, 11/10/2042^(g)		3,044		3,040
					0.50%, 12/10/2047^(d),(g)			60,589		2,230

CD 2006-CD2 Mortgage Trust
5.42%, 01/15/2046^(g)		8,755		8,258	Commercial Mortgage Pass Through
					Certificates

CD 2006-CD3 Mortgage Trust					3.50%, 02/10/2047^(d)			18,498		14,402
5.69%, 10/15/2048^(g)		15,650		13,419
					Commercial Mortgage Trust 2007-GG9

CD 2007-CD4 Commercial Mortgage Trust					5.51%, 03/10/2039			53,926		51,064

5.40%, 12/11/2049		48,110		41,957	5.53%, 03/10/2039			14,000		9,795

CFCRE Commercial Mortgage Trust 2011-					Credit Suisse Commercial Mortgage Trust

C1					Series 2006-C1
5.52%, 04/15/2044^(d),(g)		5,550		6,166
					5.47%, 02/15/2039^(g)			10,045		10,060

Citigroup Commercial Mortgage Trust 2007-					5.47%, 02/15/2039^(g)			3,790		3,790

C6					5.47%, 02/15/2039^(g)			19,700		19,561
5.71%, 07/10/2017^(d),(g)		30,000		27,441
					5.47%, 02/15/2039^(d),(g)			23,036		22,682
5.71%, 12/10/2049^(g)		21,680		19,831
					Credit Suisse Commercial Mortgage Trust

Citigroup Commercial Mortgage Trust 2012-					Series 2006-C2

GC8					5.66%, 03/15/2039^(g)			1,000		1,006
4.88%, 09/10/2045^(d),(g)		1,875		1,686
					Credit Suisse Commercial Mortgage Trust

Citigroup Commercial Mortgage Trust 2013-					Series 2007-C1

GC15					5.42%, 02/15/2040			12,500		12,786
4.25%, 09/10/2046^(d),(g)		16,492		13,173

5.10%, 09/10/2046^(d),(g)		18,100		17,594	5.46%, 02/15/2040			30,000		17,849
					Credit Suisse Commercial Mortgage Trust

Citigroup Commercial Mortgage Trust 2014-					Series 2007-C5

GC19					0.29%, 09/15/2040^(d),(g)			272,897		1,367
1.23%, 03/10/2047^(d),(g)		15,244		1,155
					Credit Suisse First Boston Mortgage Securities

Citigroup Commercial Mortgage Trust 2014-					Corp

GC23					5.23%, 12/15/2040			6,250		6,243
1.30%, 07/10/2047^(d),(g)		55,444		4,203
					5.23%, 12/15/2040^(d),(g)			6,700		6,670

Citigroup Commercial Mortgage Trust 2015-					Credit Suisse Mortgage Capital Certificates

GC31					2006	-C4
4.20%, 06/10/2048^(g)		5,000		3,904
					5.54%, 09/15/2039^(g)			29,489		29,545

COMM 2012-CCRE1 Mortgage Trust					CSAIL 2015-C1 Commercial Mortgage Trust
2.46%, 05/15/2045^(d)		13,993		10,765
					0.50%, 04/15/2050^(d),(g)			62,192		2,302
5.36%, 05/15/2045^(d),(g)		8,889		9,032
					DBUBS 2011-LC1 Mortgage Trust

COMM 2012-CCRE4 Mortgage Trust					0.27%, 11/10/2046^(d),(g)			142,384		2,072
4.57%, 10/15/2045^(d),(g)		5,000		4,722
					DBUBS 2011-LC2 Mortgage Trust

COMM 2012-CCRE5 Mortgage Trust					1.38%, 07/10/2044^(d),(g)			16,743		613
4.34%, 12/10/2045^(d),(g)		3,375		3,303

4.34%, 12/10/2045^(d),(g)		7,500		7,057	DBUBS 2011-LC3 Mortgage Trust
					3.75%, 08/10/2044^(d)			12,029		10,736

COMM 2013-CCRE11 Mortgage Trust
0.87%, 10/10/2046^(c),(d),(g)		40,266		2,013	FHLMC Multifamily Structured Pass Through

4.37%, 10/10/2046^(d),(g)		5,108		4,183	Certificates
					0.74%, 03/25/2020^(g)			151,904		3,952
5.17%, 10/10/2046^(d),(g)		13,519		12,741
					1.16%, 01/25/2021^(g)			61,136		3,091

Comm 2013-CCRE13 Mortgage Trust					1.38%, 11/25/2019^(g)			56,993		2,541
4.75%, 12/10/2023^(d),(g)		6,421		5,950
					1.45%, 08/25/2020^(g)			28,578		1,498
4.75%, 12/10/2023^(d),(g)		18,660		16,062
					1.46%, 04/25/2041^(g)			86,714		5,051

COMM 2013-CCRE6 Mortgage Trust					1.61%, 08/25/2016^(g)			23,178		168
1.51%, 03/10/2046^(g)		87,449		4,822
					1.62%, 08/25/2040^(g)			73,469		4,021
4.17%, 03/10/2046^(d),(g)		21,400		19,114
					1.64%, 04/25/2017^(g)			89,282		1,310
4.17%, 03/10/2046^(d),(g)		10,500		8,670
					1.66%, 06/25/2042^(g)			13,000		693

COMM 2013-CCRE7 Mortgage Trust					1.70%, 04/25/2045^(g)			48,322		2,518
4.35%, 03/10/2046^(d),(g)		7,500		6,694
					1.90%, 11/25/2039^(g)			28,598		1,535

COMM 2013-LC6 Mortgage Trust					2.00%, 09/25/2039^(g)			32,000		1,744
4.29%, 01/10/2046^(d),(g)		15,205		13,752
					2.10%, 10/25/2025^(g)			47,224		2,611

COMM 2014-CCRE15 Mortgage Trust					2.21%, 12/25/2039^(g)			15,514		1,800
4.27%, 02/10/2047^(d),(g)		5,414		4,616
					2.25%, 01/25/2041^(g)			15,537		1,646

COMM 2014-CCRE17 Mortgage Trust					2.52%, 07/25/2039^(g)			89,000		5,452
0.33%, 05/10/2047^(d),(g)		44,717		992
					2.58%, 11/25/2041^(g)			25,000		3,429
0.80%, 05/10/2047^(d),(g)		62,604		3,083
					2.58%, 12/25/2043^(g)			18,309		2,170
4.30%, 05/10/2047^(d),(g)		5,311		4,113
					2.80%, 08/25/2039^(g)			38,877		5,551
4.80%, 05/10/2047^(d),(g)		17,469		16,045


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



		Principal				Principal
BONDS (continued)		Amount (000's)	Value(000	's)	BONDS (continued)	Amount (000's) Value (000's)

Commercial Mortgage Backed Securities (continued)					Commercial Mortgage Backed Securities (continued)
FHLMC Multifamily Structured Pass Through					JP Morgan Chase Commercial Mortgage
Certificates (continued)					Securities Trust 2007-CIBC20
2.81%, 01/25/2043^(g)	$	85,739	$ 11,277		6.18%, 02/12/2051^(d),(g)	$5,755	$	5,792
3.22%, 02/25/2042^(g)		92,991	14,738		JP Morgan Chase Commercial Mortgage
3.61%, 06/25/2041^(g)		4,400	777		Securities Trust 2010-C1
4.63%, 11/25/2044^(g)		1,800	373		3.77%, 06/15/2043^(d)	5,000		1,856
FREMF 2011-K704 Mortgage Trust					JP Morgan Chase Commercial Mortgage
0.10%, 10/25/2030^(d),(g)		564,451	1,327		Securities Trust 2010-CNTR
GE Capital Commercial Mortgage Corp					2.00%, 08/05/2032^(d),(g)	11,929		782
4.53%, 06/10/2048^(g)		1,816	1,815		JP Morgan Chase Commercial Mortgage
GE Commercial Mortgage Corp Series 2007-					Securities Trust 2011-C3
C1 Trust					4.41%, 02/15/2046^(d)	4,330		3,869
5.54%, 12/10/2049^(d)		9,000	9,281		JP Morgan Chase Commercial Mortgage
5.61%, 12/10/2049^(g)		10,000	10,353		Securities Trust 2011-C5
GS Mortgage Securities Corp II					4.00%, 08/15/2046^(d)	6,000		5,345
3.38%, 05/10/2050^(g)		4,500	3,296		5.32%, 08/15/2046^(d),(g)	4,844		5,038
4.85%, 11/10/2045^(d),(g)		8,500	7,460		JP Morgan Chase Commercial Mortgage
4.85%, 11/10/2045^(d),(g)		10,000	9,536		Securities Trust 2012-C6
GS Mortgage Securities Trust 2010-C1					2.97%, 05/15/2045^(d)	7,500		5,780
1.48%, 08/10/2043^(d),(g)		46,102	2,592		5.20%, 05/15/2045^(d),(g)	3,835		3,806
GS Mortgage Securities Trust 2010-C2					JP Morgan Chase Commercial Mortgage
5.18%, 12/10/2043^(d),(g)		10,000	10,337		Securities Trust 2012-C8
GS Mortgage Securities Trust 2011-GC5					2.75%, 10/15/2045^(d),(g)	8,553		6,503
5.31%, 08/10/2044^(d),(g)		20,000	20,364		JP Morgan Chase Commercial Mortgage
5.31%, 08/10/2044^(d),(g)		3,660	3,541		Securities Trust 2013-C10
GS Mortgage Securities Trust 2012-GC6					0.36%, 12/15/2047^(d),(g)	276,436		6,186
0.19%, 01/10/2045^(d),(g)		226,539	2,420		JP Morgan Chase Commercial Mortgage
GS Mortgage Securities Trust 2012-GCJ7					Securities Trust 2013-C16
5.72%, 05/10/2045^(d),(g)		7,429	7,480		1.26%, 12/15/2046^(d),(g)	20,750		1,624
GS Mortgage Securities Trust 2013-GC16					3.74%, 12/15/2046^(d)	10,000		7,708
3.50%, 11/10/2046^(d),(g)		2,500	1,880		5.01%, 12/15/2046^(d),(g)	16,203		15,290
5.32%, 11/10/2046^(d),(g)		3,544	3,410		JP Morgan Chase Commercial Mortgage
GS Mortgage Securities Trust 2013-GCJ14					Securities Trust 2013-LC11
4.77%, 08/10/2046^(d),(g)		3,500	3,260		0.99%, 04/15/2046^(d),(g)	49,841		2,746
4.77%, 08/10/2046^(d),(g)		7,742	6,917		1.55%, 04/15/2046^(g)	117,714		8,892
4.77%, 08/10/2046^(d),(g)		2,500	2,080		JP Morgan Chase Commercial Mortgage
GS Mortgage Securities Trust 2014-GC26					Securities Trust 2014-C20
1.21%, 11/10/2047^(d),(g)		29,811	2,665		1.16%, 07/15/2047^(g)	95,225		5,660
JP Morgan Chase Commercial Mortgage					JPMBB Commercial Mortgage Securities
Securities Trust 2005-CIBC12					Trust 2013-C12
4.99%, 09/12/2037		148	149		4.09%, 07/15/2045^(g)	13,826		12,463
JP Morgan Chase Commercial Mortgage					JPMBB Commercial Mortgage Securities
Securities Trust 2005-LDP1					Trust 2013-C15
5.76%, 03/15/2046^(d),(g)		4,600	4,599		5.08%, 11/15/2045^(d),(g)	23,750		22,776
JP Morgan Chase Commercial Mortgage					JPMBB Commercial Mortgage Securities
Securities Trust 2005-LDP4					Trust 2014-C18
5.13%, 10/15/2042		7,800	7,757		1.14%, 02/15/2047^(g)	58,875		3,440
JP Morgan Chase Commercial Mortgage					4.81%, 02/15/2047^(d),(g)	10,000		8,828
Securities Trust 2006-CIBC14					JPMBB Commercial Mortgage Securities
5.54%, 12/12/2044^(g)		20,340	19,661		Trust 2014-C23
JP Morgan Chase Commercial Mortgage					0.88%, 09/15/2047^(g)	442,332		19,920
Securities Trust 2006-CIBC16					JPMBB Commercial Mortgage Securities
5.62%, 05/12/2045		20,140	19,828		Trust 2014-C24
JP Morgan Chase Commercial Mortgage					1.08%, 11/15/2047^(g)	129,415		7,869
Securities Trust 2006-CIBC17					3.93%, 11/15/2047^(d),(g)	18,500		15,348
5.49%, 12/12/2043		30,435	16,283		JPMBB Commercial Mortgage Securities
JP Morgan Chase Commercial Mortgage					Trust 2014-C26
Securities Trust 2006-LDP6					4.43%, 01/15/2048^(g)	10,000		9,690
5.56%, 04/15/2043^(g)		5,599	5,600		JPMBB Commercial Mortgage Securities
JP Morgan Chase Commercial Mortgage					Trust 2015-C28
Securities Trust 2006-LDP7					0.50%, 10/15/2048^(d),(g)	54,005		1,996
5.91%, 04/15/2045^(g)		9,000	8,595		1.21%, 10/15/2048^(g)	62,835		4,490
JP Morgan Chase Commercial Mortgage					4.24%, 10/15/2048^(g)	8,600		7,745
Securities Trust 2006-LDP9					JPMBB Commercial Mortgage Securities
5.34%, 05/15/2047		1,000	999		Trust 2015-C29
JP Morgan Chase Commercial Mortgage					3.70%, 05/15/2048^(g)	4,500		3,472
Securities Trust 2007-C1					JPMBB Commercial Mortgage Securities
5.95%, 02/15/2051^(g)		17,000	18,032		Trust 2015-C30
JP Morgan Chase Commercial Mortgage					0.73%, 07/15/2048^(g)	84,262		3,639
Securities Trust 2007-CIBC19					JPMBB Commercial Mortgage Securities
5.70%, 02/12/2049^(g)		35,000	32,545		Trust 2015-C31
					0.50%, 08/15/2048^(d),(g)	42,377		1,614


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



			Principal						Principal
	BONDS (continued)		Amount (000's)	Value(000	's)	BONDS (continued)			Amount (000's) Value (000's)

	Commercial Mortgage Backed Securities (continued)					Commercial Mortgage Backed Securities (continued)
	LB Commercial Mortgage Trust 2007-C3					Morgan Stanley Bank of America Merrill
	5.90%, 07/15/2044^(g)	$	5,000	$ 5,125		Lynch Trust 2013-C9
	5.90%, 07/15/2044^(g)		12,738	12,821		4.16%, 05/15/2046^(d),(g)		$	4,150	$	3,555
LB	-UBS Commercial Mortgage Trust 2003-					Morgan Stanley Bank of America Merrill
	C8					Lynch Trust 2014-C14
	0.17%, 09/15/2037^(d),(g)		868	—		4.83%, 02/15/2047^(d),(g)			10,331		9,192
LB	-UBS Commercial Mortgage Trust 2004-					Morgan Stanley Bank of America Merrill
	C1					Lynch Trust 2014-C15
	5.00%, 01/15/2036		1,000	996		0.90%, 04/15/2047^(c),(d),(g)			67,485		3,965
LB	-UBS Commercial Mortgage Trust 2005-					4.90%, 04/15/2047^(d),(g)			8,786		8,095
	C3					4.90%, 04/15/2047^(d),(g)			4,000		3,502
	4.95%, 07/15/2040^(g)		1,681	1,788		Morgan Stanley Bank of America Merrill
LB	-UBS Commercial Mortgage Trust 2006-					Lynch Trust 2014-C16
	C6					4.26%, 06/15/2047^(d),(g)			17,104		14,174
	5.47%, 09/15/2039^(g)		8,500	8,537		4.76%, 06/15/2047^(d),(g)			20,000		17,795
LB	-UBS Commercial Mortgage Trust 2006-					4.76%, 06/15/2047^(g)			5,510		5,618
	C7					Morgan Stanley Bank of America Merrill
	5.41%, 11/15/2038		28,000	24,700		Lynch Trust 2014-C18
LB	-UBS Commercial Mortgage Trust 2007-					0.99%, 10/15/2047^(g)			193,670		9,351
	C1					4.49%, 10/15/2047			4,408		4,473
	5.48%, 02/15/2040		10,000	10,260		Morgan Stanley Bank of America Merrill
LB	-UBS Commercial Mortgage Trust 2007-					Lynch Trust 2015-C20
	C6					1.39%, 02/15/2048^(d),(g)			41,500		4,384
	6.12%, 07/15/2040^(g)		17,000	17,502		Morgan Stanley Bank of America Merrill
	6.14%, 07/15/2040^(g)		13,250	13,436		Lynch Trust 2015-C26
	6.14%, 07/15/2040^(g)		8,841	8,498		0.00%, 11/15/2048^{(b),(c),(g),(h)}			7,185		5,202
LB	-UBS Commercial Mortgage Trust 2007-					Morgan Stanley Capital I Trust 2006-HQ10
	C7					5.39%, 11/12/2041^(g)			6,450		6,462
	6.25%, 09/15/2045^(g)		10,500	10,901		Morgan Stanley Capital I Trust 2007-HQ13
	6.25%, 09/15/2045^(g)		8,845	8,907		5.93%, 12/15/2044			13,275		13,538
LB	-UBS Commercial Mortgage Trust 2008-					Morgan Stanley Capital I Trust 2011-C3
	C1					1.21%, 07/15/2049^(d),(g)			38,061		1,092
	6.10%, 04/15/2041^(g)		13,964	9,724		UBS Commercial Mortgage Trust 2012-C1
	Merrill Lynch Mortgage Trust 2005-LC1					0.35%, 05/10/2045^(d),(g)			143,076		3,096
	5.36%, 01/12/2044^(g)		2,300	2,305		5.00%, 05/10/2045^(d)			8,000		7,091
	Merrill Lynch Mortgage Trust 2006-C1					UBS-Barclays Commercial Mortgage Trust
	5.67%, 05/12/2039^(g)		9,000	9,046		2012	-C2
	5.67%, 05/12/2039^(g)		15,000	12,582		1.72%, 05/10/2063^(d),(g)			36,338		2,413
	Merrill Lynch Mortgage Trust 2006-C2					UBS-Barclays Commercial Mortgage Trust
	5.80%, 08/12/2043^(g)		28,000	28,163		2012	-C3
	Merrill Lynch Mortgage Trust 2007-C1					4.96%, 08/10/2049^(d),(g)			25,827		25,498
	5.84%, 06/12/2050^(g)		15,870	231		4.96%, 08/10/2049^(d),(g)			20,994		18,988
	5.84%, 06/12/2050^(g)		10,781	108		UBS-Barclays Commercial Mortgage Trust
ML	-CFC Commercial Mortgage Trust 2006-					2012	-C4
	3					4.50%, 12/10/2045^(d),(g)			21,000		20,051
	5.48%, 07/12/2046^(g)		24,265	24,451		4.50%, 12/10/2045^(d),(g)			17,981		15,761
	5.52%, 07/12/2046^(g)		20,750	20,360		UBS-Barclays Commercial Mortgage Trust
	5.55%, 07/12/2046^(g)		2,500	1,781		2013	-C5
ML	-CFC Commercial Mortgage Trust 2007-					4.09%, 03/10/2046^(d),(g)			9,150		8,400
	5					4.09%, 03/10/2046^(d),(g)			2,500		2,057
	5.45%, 08/12/2048		15,070	14,894		Wachovia Bank Commercial Mortgage Trust
ML	-CFC Commercial Mortgage Trust 2007-					Series 2006-C26
	9					6.00%, 06/15/2045^(g)			13,067		13,226
	0.36%, 09/12/2049^(g)		14,499	—		Wachovia Bank Commercial Mortgage Trust
	6.19%, 09/12/2049^(g)		35,490	35,596		Series 2006-C29
	Morgan Stanley Bank of America Merrill					5.37%, 11/15/2048			30,879		30,626
	Lynch Trust 2012-C5					Wachovia Bank Commercial Mortgage Trust
	0.08%, 08/15/2045^(d),(g)		221,584	1,214		Series 2007-C30
	4.69%, 08/15/2045^(d),(g)		6,787	6,647		5.41%, 12/15/2043^(g)			12,715		12,723
	Morgan Stanley Bank of America Merrill					5.46%, 12/15/2043^(g)			6,778		7,164
	Lynch Trust 2013-C10					5.48%, 12/15/2043			22,500		23,161
	4.08%, 07/15/2046^(d),(g)		5,609	5,257		Wachovia Bank Commercial Mortgage Trust
	Morgan Stanley Bank of America Merrill					Series 2007-C34
	Lynch Trust 2013-C11					6.02%, 05/15/2046^(g)			8,718		8,796
	0.75%, 08/15/2046^(g)		164,653	3,727		Wachovia Commercial Mortgage Securities
	Morgan Stanley Bank of America Merrill					Inc Commercial Mortgage Pass Through
	Lynch Trust 2013-C13					Certificates Series 2003 C5
	4.89%, 11/15/2046^(d),(g)		5,462	5,231		2.18%, 06/15/2035^(d),(g)			488		13
	Morgan Stanley Bank of America Merrill					Wells Fargo Commercial Mortgage Trust
	Lynch Trust 2013-C8					2010	-C1
	1.45%, 12/15/2048^(g)		113,604	5,678		0.59%, 11/15/2043^(d),(g)			13,678		360
	4.17%, 12/15/2048^(d),(g)		18,500	17,281


		Principal					Principal
BONDS (continued)		Amount (000's)			Value (000's)	BONDS (continued)	Amount (000's) Value (000's)

Commercial Mortgage Backed Securities (continued)						Computers - 0.09%
Wells Fargo Commercial Mortgage Trust						NCR Corp
2014-L	C18					5.88%, 12/15/2021	$	2,000	$	2,020
1.20%, 12/15/2047^(g)		$	86,272	$	6,544	6.38%, 12/15/2023		8,078		8,320
3.96%, 12/15/2047^(d),(g)			13,500		10,990			$		10,340
Wells Fargo Commercial Mortgage Trust
2015	-C28					Consumer Products - 0.28%
4.14%, 05/15/2048^(g)			10,000		7,862	Central Garden & Pet Co
Wells Fargo Commercial Mortgage Trust						8.25%, 03/01/2018		24,182		24,636
2015-NX	S1					Spectrum Brands Inc
4.11%, 05/15/2048^(g)			6,500		5,348	6.63%, 11/15/2022		6,500		7,101
Wells Fargo Commercial Mortgage Trust								$		31,737
2015-NX	S2
4.25%, 07/15/2058^(g)			9,153		7,373	Distribution & Wholesale - 0.27%
						Alliance Automotive Finance PLC
Wells Fargo Commercial Mortgage Trust						6.25%, 12/01/2021	EUR	1,600		1,816
2015-NX	S3					American Tire Distributors Inc
3.15%, 09/15/2057^(d),(g)			5,000		3,647	10.25%, 03/01/2022 ^(d)	$	14,750		14,898
WFRBS Commercial Mortgage Trust 2011-						H&E Equipment Services Inc
C4						7.00%, 09/01/2022		1,690		1,715
0.61%, 06/15/2044^(d),(g)			107,829		2,034
						Li & Fung Ltd
WFRBS Commercial Mortgage Trust 2011-						6.00%, 11/25/2049^(f)		3,500		3,605
C5
0.11%, 11/15/2044^(d),(g)			121,416		852	VWR Funding Inc
						4.63%, 04/15/2022	EUR	4,192		4,400
WFRBS Commercial Mortgage Trust 2013-						4.63%, 04/15/2022^(d)		3,850		4,041
C11								$		30,475
4.18%, 03/15/2045^(d),(g)			10,000		8,422
WFRBS Commercial Mortgage Trust 2014-						Diversified Financial Services - 1.66%
C20						AerCap Ireland Capital Ltd / AerCap Global
3.99%, 05/15/2047^(d),(g)			10,000		8,191	Aviation Trust
WFRBS Commercial Mortgage Trust 2014-						3.75%, 05/15/2019	$	3,000		3,036
C22						4.63%, 10/30/2020		11,800		12,228
3.77%, 09/15/2057^(g)			8,500		7,985	Aircastle Ltd
3.91%, 09/15/2057^(d),(g)			10,000		8,166	5.50%, 02/15/2022		4,000		4,230
WFRBS Commercial Mortgage Trust 2014-						Alliance Data Systems Corp
C24						5.25%, 12/01/2017^(d)		2,500		2,575
3.69%, 11/15/2047^(d)			11,047		8,775	5.38%, 08/01/2022^(d)		18,300		18,575
						6.38%, 04/01/2020^(d)		4,500		4,646
			$		1,877,478
						American Express Co
Commercial Services - 1.03%						5.20%, 05/29/2049^(f),(g)		2,000		2,000
AA Bond Co Ltd						Ares Finance Co II LLC
5.50%, 07/31/2043		GBP	1,525		2,239	5.25%, 09/01/2025^(d)		3,300		3,327
ADT Corp/The						Charles Schwab Corp/The
6.25%, 10/15/2021		$	6,000		6,480	7.00%, 02/28/2049^(f),(g)		4,198		4,880
Ancestry.com Holdings LLC						CIMPOR Financial Operations BV
9.63%, PIK 10.38%, 10/15/2018 ^(d),(i)			30,400		30,704	5.75%, 07/17/2024^(d)		2,334		1,538
Atento Luxco 1 SA						Depository Trust & Clearing Corp/The
7.38%, 01/29/2020			3,575		3,352	4.88%, 12/29/2049^(d),(f),(g)		9,000		9,045
Avis Budget Finance PLC						Drawbridge Special Opportunities Fund
6.00%, 03/01/2021		EUR	2,100		2,425	LP/Drawbridge Special Opportunities
ENA Norte Trust						Finance
4.95%, 04/25/2028^(d)		$	3,215		3,289	5.00%, 08/01/2021^(d)		15,300		14,994
Europcar Groupe SA						Financiera de Desarrollo Territorial SA
5.75%, 06/15/2022		EUR	3,700		4,231	Findeter
Jaguar Holding Co II / Pharmaceutical Product						7.88%, 08/12/2024^(d)	COP	2,500,000		787
Development LLC						General Electric Capital Corp
6.38%, 08/01/2023^(d)		$	18,100		18,122	6.25%, 12/31/2049^(f),(g)	$	2,600		2,898
Midas Intermediate Holdco II LLC / Midas						7.13%, 12/29/2049^(f),(g)		15,100		17,742
Intermediate Holdco II Finance Inc
7.88%, 10/01/2022^(d)			8,538		8,410	Icahn Enterprises LP / Icahn Enterprises
						Finance Corp
Prospect Medical Holdings Inc						5.88%, 02/01/2022		7,700		7,931
8.38%, 05/01/2019^(d)			700		739
						Jefferies Finance LLC / JFIN Co-Issuer Corp
Truven Health Analytics Inc						7.38%, 04/01/2020^(d)		4,725		4,630
10.63%, 06/01/2020			12,950		13,565	7.50%, 04/15/2021^(d)		14,250		13,805
United Rentals North America Inc						Jefferies LoanCore LLC / JLC Finance Corp
4.63%, 07/15/2023			11,350		11,400	6.88%, 06/01/2020^(d)		8,700		8,526
Verisk Analytics Inc						Lock AS
4.00%, 06/15/2025			3,000		2,919	5.48%, 08/15/2020^(d),(g)	EUR	500		551
Verisure Holding AB						7.00%, 08/15/2021^(d)		2,700		3,104
6.00%, 11/01/2022^(d)		EUR	3,700		4,160	MBNA Capital B
WEX Inc						1.10%, 02/01/2027^(g)	$	7,500		6,938
4.75%, 02/01/2023^(d)		$	5,100		4,769
						National Financial Partners Corp
			$		116,804	9.00%, 07/15/2021^(d)		18,664		18,290


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)

Diversified Financial Services (continued)					Energy - Alternate Sources (continued)
Nationstar Mortgage LLC / Nationstar Capital					TerraForm Power Operating LLC
Corp					5.88%, 02/01/2023^(d)		$	8,300	$	7,657
6.50%, 07/01/2021	$	2,700	$	2,471	6.13%, 06/15/2025^(d)			1,675		1,507
6.50%, 06/01/2022		3,500		3,150				$		23,129
7.88%, 10/01/2020		2,800		2,758
NewStar Financial Inc					Engineering & Construction - 0.21%
7.25%, 05/01/2020		3,025		3,017	AECOM
					5.75%, 10/15/2022^(d)			5,800		6,032
Oxford Finance LLC / Oxford Finance Co-
Issuer Inc					Heathrow Finance PLC
7.25%, 01/15/2018^(d)		3,640		3,731	5.75%, 03/03/2025		GBP	1,700		2,682
Pershing Square Holdings Ltd					7.13%, 03/01/2017			2,500		4,061
5.50%, 07/15/2022^(d)		4,500		4,258	Michael Baker Holdings LLC / Micahel Baker
					Finance Corp
Quicken Loans Inc					8.88%, PIK 9.63%, 04/15/2019^(d),(i)		$	6,394		5,211
5.75%, 05/01/2025^(d)		1,900		1,886
SUAM Finance BV					Michael Baker International LLC / CDL
4.88%, 04/17/2024^(d)		1,821		1,876	Acquisition Co Inc
					8.25%, 10/15/2018^(d)			2,650		2,491
		$		189,423
					Odebrecht Finance Ltd
Electric - 0.84%					7.13%, 06/26/2042^(d)			2,350		1,398
AES Corp/VA					7.13%, 06/26/2042			1,730		1,029
7.38%, 07/01/2021		10,264		10,931	Pratama Agung Pte Ltd
Comision Federal de Electricidad					6.25%, 02/24/2020			1,240		1,215
4.88%, 01/15/2024^(d)		891		911				$		24,119
6.13%, 06/16/2045^(d)		4,760		4,605
Dominion Resources Inc/VA					Entertainment - 0.68%
7.50%, 06/30/2066		700		627	Choctaw Resort Development Enterprise
					7.25%, 11/15/2019^(d)			8,253		8,088
Electricite de France SA
5.25%, 01/29/2049^(d),(f),(g)		4,790		4,766	Gibson Brands Inc
					8.88%, 08/01/2018^(d)			6,980		6,125
5.63%, 12/29/2049^(f),(g)		9,980		9,863
Enel SpA					GLP Capital LP / GLP Financing II Inc
5.00%, 01/15/2075^(g)	EUR	3,400		3,926	4.38%, 11/01/2018			2,000		2,070
Eskom Holdings SOC Ltd					4.88%, 11/01/2020			4,582		4,720
5.75%, 01/26/2021^(d)	$	1,130		1,050	Vougeot Bidco PLC
6.75%, 08/06/2023^(d)		700		650	7.88%, 07/15/2020		GBP	2,000		3,268
7.13%, 02/11/2025		900		835	WMG Acquisition Corp
					6.00%, 01/15/2021^(d)		$	2,536		2,612
7.13%, 02/11/2025^(d)		30,368		28,166
					6.75%, 04/15/2022^(d)			54,865		50,784
Listrindo Capital BV
6.95%, 02/21/2019^(d)		4,989		5,164				$		77,667
Majapahit Holding BV					Food- 1.34	%
7.75%, 01/20/2020^(d)		1,730		1,952
					Bakkavor Finance 2 PLC
7.88%, 06/29/2037		1,375		1,542	8.25%, 02/15/2018		GBP	925		1,473
NextEra Energy Capital Holdings Inc
7.30%, 09/01/2067^(g)		5,000		4,975	Boparan Finance PLC
					5.50%, 07/15/2021			4,000		5,611
Perusahaan Listrik Negara PT					Bumble Bee Holdco SCA
5.50%, 11/22/2021^(d)		1,640		1,692	9.63%, PIK 10.38%, 03/15/2018 ^(d),(i)		$	6,432		6,528
RWE AG					Bumble Bee Holdings Inc
7.00%, 10/12/2072^(g)		4,800		4,887	9.00%, 12/15/2017^(d)			5,400		5,549
Terraform Global Operating LLC
9.75%, 08/15/2022^(d)		6,750		6,041	Campofrio Food Group SA
					3.38%, 03/15/2022		EUR	1,000		1,108
Three Gorges Finance I Cayman Islands Ltd					Cencosud SA
3.70%, 06/10/2025^(d)		2,718		2,766	4.88%, 01/20/2023^(d)		$	750		742
		$		95,349	5.15%, 02/12/2025^(d)			3,200		3,136
					5.50%, 01/20/2021^(d)			852		893
Electrical Components & Equipment - 0.10%					6.63%, 02/12/2045^(d)			2,250		2,050
Anixter Inc
5.13%, 10/01/2021		1,750		1,792	Cosan Luxembourg SA
					5.00%, 03/14/2023^(d)			4,286		3,600
5.50%, 03/01/2023^(d)		4,900		5,059
WESCO Distribution Inc					ESAL GmbH
					6.25%, 02/05/2023^(d)			4,453		4,342
5.38%, 12/15/2021		4,830		4,673
		$		11,524	Findus Bondco SA
					9.13%, 07/01/2018		EUR	3,405		3,915
Electronics - 0.25%					FPC Finance Ltd
Real Alloy Holding Inc					6.00%, 06/28/2019		$	1,850		1,952
10.00%, 01/15/2019 ^(d),(e)		20,120		20,522	FPT Finance Ltd
Techem Energy Metering Service GmbH &					6.38%, 09/28/2020			1,000		1,091
Co KG					Gruma SAB de CV
7.88%, 10/01/2020	EUR	3,300		3,930	4.88%, 12/01/2024^(d)			1,858		1,965
Trionista TopCo GmbH					Grupo Bimbo SAB de CV
6.88%, 04/30/2021		3,400		3,964	4.88%, 06/27/2044^(d)			2,650		2,374
		$		28,416	KeHE Distributors LLC / KeHE Finance
					Corp
Energy - Alternate Sources - 0.20%					7.63%, 08/15/2021^(d)			7,775		8,203
ContourGlobal Power Holdings SA
7.13%, 06/01/2019^(d)	$	14,000		13,965

Schedule of Investments
Global Diversified Income Fund
October 31, 2015


		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)					BONDS (continued)	Amount (000's) Value (000's)

Food (continued)							Healthcare - Services (continued)
Marfrig Holdings Europe BV							HomeVi SAS
6.88%, 06/24/2019^(d)		$	7,800	$	7,117		6.88%, 08/15/2021	EUR	2,000	$	2,282
Marfrig Overseas Ltd							MPH Acquisition Holdings LLC
9.50%, 05/04/2020^(d)			700		700		6.63%, 04/01/2022^(d)	$	20,790		21,206
Minerva Luxembourg SA							Priory Group No 3 PLC
7.75%, 01/31/2023^(d)			4,632		4,574		7.00%, 02/15/2018	GBP	1,102		1,749
Premier Foods Finance PLC							8.88%, 02/15/2019		1,325		2,114
6.50%, 03/15/2021		GBP	3,000		4,298		Select Medical Corp
R&R PIK PLC							6.38%, 06/01/2021	$	5,150		4,558
9.25%, PIK 10.00%, 05/15/2018 ⁽ⁱ⁾		EUR	5,670		6,297		Surgical Care Affiliates Inc
Simmons Foods Inc							6.00%, 04/01/2023^(d)		15,370		15,447
7.88%, 10/01/2021^(d)		$	2,210		2,066		Tenet Healthcare Corp
Tesco PLC							3.84%, 06/15/2020^(d),(g)		4,700		4,665
6.13%, 02/24/2022		GBP	3,100		5,050		6.00%, 10/01/2020		2,100		2,268
US Foods Inc							6.75%, 06/15/2023		17,150		17,021
8.50%, 06/30/2019		$	65,635		68,261		8.13%, 04/01/2022		30,000		31,725
			$		152,895				$		142,938

Forest Products & Paper - 0.22%							Holding Companies - Diversified - 1.76%
Cascades Inc							CeramTec Group GmbH
5.50%, 07/15/2022^(d)			2,500		2,431		8.25%, 08/15/2021	EUR	5,000		5,959
5.75%, 07/15/2023^(d)			2,900		2,784	Co	-operative Group Holdings 2011 Ltd
Fibria Overseas Finance Ltd							7.50%, 07/08/2026	GBP	1,500		2,476
5.25%, 05/12/2024			6,608		6,500		Dubai Holding Commercial Operations MTN
Mercer International Inc							Ltd
7.00%, 12/01/2019			6,340		6,467		6.00%, 02/01/2017		6,800		10,604
7.75%, 12/01/2022			3,970		4,149		GCS Holdco Finance I SA
Smurfit Kappa Acquisitions							6.50%, 11/15/2018	EUR	2,950		3,350
2.75%, 02/01/2025		EUR	2,550		2,762		HRG Group Inc
			$		25,093		7.75%, 01/15/2022	$	75,781		75,212
							7.75%, 01/15/2022^(d)		9,990		9,915
Gas- 0.14	%						7.88%, 07/15/2019		14,050		14,910
LBC Tank Terminals Holding Netherlands							7.88%, 07/15/2019^(d)		1,950		2,070
BV
6.88%, 05/15/2023^(d)		$	11,050		11,326		KraussMaffei Group GmbH
							8.75%, 12/15/2020	EUR	1,360		1,593
Perusahaan Gas Negara Persero Tbk PT
5.13%, 05/16/2024^(d)			2,947		2,919		Opal Acquisition Inc
							8.88%, 12/15/2021^(d)	$	52,321		46,501
Towngas Finance Ltd
4.75%, 01/29/2049^(f),(g)			2,000		2,061		ProGroup AG
							5.13%, 05/01/2022	EUR	3,300		3,809
			$		16,306		Sinochem Overseas Capital Co Ltd
							4.50%, 11/12/2020	$	2,116		2,227
Hand & Machine Tools - 0.00%							4.50%, 11/12/2020^(d)		19,256		20,266
Stanley Black & Decker Inc
5.75%, 12/15/2053			450		476		6.30%, 11/12/2040		950		1,138
									$		200,030

Healthcare - Products - 0.22%							Home Builders - 0.05%
ConvaTec Finance International SA							Brookfield Residential Properties Inc
8.25%, PIK 9.00%, 01/15/2019^(d),(i)			13,191		13,158		6.38%, 05/15/2025^(d)		4,400		4,224
Fresenius Finance BV							Lennar Corp
3.00%, 02/01/2021		EUR	1,000		1,172		4.88%, 12/15/2023^(h)		1,600		1,594
Sterigenics-Nordion Holdings LLC									$		5,818
6.50%, 05/15/2023^(d)		$	10,260		10,324
							Home Furnishings - 0.06%
			$		24,654		Magnolia BC SA
Healthcare - Services - 1.26%							9.00%, 08/01/2020	EUR	1,000		1,185
Acadia Healthcare Co Inc							Tempur Sealy International Inc
5.13%, 07/01/2022			2,700		2,666		5.63%, 10/15/2023^(d)	$	5,400		5,657
5.63%, 02/15/2023^(d)			4,500		4,506				$		6,842
5.63%, 02/15/2023			7,288		7,297
							Insurance - 1.70%
6.13%, 03/15/2021			2,000		2,080
							ACE Capital Trust II

Amsurg Corp							9.70%, 04/01/2030		4,000		5,850
5.63%, 11/30/2020			2,500		2,544
							AG Insurance SA/NV
5.63%, 07/15/2022			2,850		2,800		6.75%, 03/29/2049^(f),(g)		3,000		3,231

CHS/Community Health Systems Inc							AIG Life Holdings Inc
5.13%, 08/01/2021			2,000		2,065		7.57%, 12/01/2045^(d)		2,900		3,784
6.88%, 02/01/2022			4,000		4,030
							8.50%, 07/01/2030		5,400		7,155
7.13%, 07/15/2020			2,000		2,050
							Allstate Corp/The
DaVita HealthCare Partners Inc							5.75%, 08/15/2053^(g)		100		104
5.00%, 05/01/2025			3,650		3,623

HealthSouth Corp							American Equity Investment Life Holding
5.75%, 09/15/2025^(d)			3,600		3,584		Co
							6.63%, 07/15/2021		24,570		26,044

Holding Medi-Partenaires SAS
7.00%, 05/15/2020		EUR	2,265		2,658		American International Group Inc
							8.18%, 05/15/2068		1,500		1,980


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Insurance (continued)					Investment Companies (continued)
AXA SA					Grupo Aval Ltd
8.60%, 12/15/2030	$	6,332	$	8,671	4.75%, 09/26/2022^(d)		$	1,481	$	1,444
Catlin Insurance Co Ltd					4.75%, 09/26/2022			1,200		1,170
7.25%, 07/29/2049^(d),(f)		6,150		5,274				$		5,711
Chubb Corp/The
6.38%, 03/29/2067^(g)		900		864	Iron & Steel - 0.43%
Dai-ichi Life Insurance Co Ltd/The					ABJA Investment Co Pte Ltd
5.10%, 10/29/2049^(d),(f),(g)		2,400		2,499	4.85%, 01/31/2020			4,114		4,164
Fidelity & Guaranty Life Holdings Inc					5.95%, 07/31/2024			3,585		3,337
6.38%, 04/01/2021^(d)		7,325		7,709	ArcelorMittal
					6.13%, 06/01/2025			1,270		1,095
Great-West Life & Annuity Insurance Capital					6.25%, 03/01/2021^(g)			1,025		968
LP
6.63%, 11/15/2034^(d)		2,400		2,665	BlueScope Steel Finance Ltd/BlueScope Steel
					Finance USA LLC
HUB International Ltd					7.13%, 05/01/2018^(d)			781		769
7.88%, 10/01/2021^(d)		6,875		6,858
					Evraz Group SA
Ironshore Holdings US Inc					6.50%, 04/22/2020^(d)			7,851		7,592
8.50%, 05/15/2020^(d)		3,410		3,974
					6.75%, 04/27/2018^(d)			3,760		3,779
Kemper Corp
4.35%, 02/15/2025		2,500		2,527	Metalloinvest Finance Ltd
					5.63%, 04/17/2020^(d)			2,200		2,096
Liberty Mutual Group Inc					6.50%, 07/21/2016^(d)			550		559
7.80%, 03/07/2087^(d)		9,061		10,624
					Optima Specialty Steel
Liberty Mutual Insurance Co					12.00%, 12/30/2016 ^(c),(e)			14,740		13,377
7.70%, 10/15/2097^(d)		946		1,186
					Samarco Mineracao SA
Lincoln National Corp					4.13%, 11/01/2022^(d)			5,153		4,283
6.05%, 04/20/2067^(g)		684		568
MetLife Capital Trust IV					ThyssenKrupp AG
7.88%, 12/15/2067^(d)		5,000		6,200	4.00%, 08/27/2018		EUR	2,200		2,570
MetLife Capital Trust X					Vale Overseas Ltd
9.25%, 04/08/2068^(d)		11,000		15,292	6.88%, 11/10/2039		$	4,844		3,887
MetLife Inc								$		48,476
6.40%, 12/15/2066^(g)		6,800		7,457
					Lodging - 0.47%
Mitsui Sumitomo Insurance Co Ltd					Caesars Entertainment Operating Co Inc
7.00%, 03/15/2072^(d)		600		696	0.00%, 06/01/2017^(b)			39,240		31,098
Nippon Life Insurance Co					Interval Acquisition Corp
5.10%, 10/16/2044^(d),(g)		3,200		3,336	5.63%, 04/15/2023^(d)			2,100		2,152
Provident Financing Trust I					MCE Finance Ltd
7.41%, 03/15/2038		4,400		4,975	5.00%, 02/15/2021^(d)			4,792		4,487
Prudential Financial Inc
5.63%, 06/15/2043^(g)		2,700		2,826	Seminole Hard Rock Entertainment Inc /
					Seminole Hard Rock International LLC
5.88%, 09/15/2042^(g)		3,700		3,922	5.88%, 05/15/2021^(d)			3,115		3,107
Prudential PLC					Studio City Finance Ltd
7.75%, 01/29/2049^(f)		2,215		2,301	8.50%, 12/01/2020^(d)			1,400		1,417
USI Inc/NY					8.50%, 12/01/2020			750		759
7.75%, 01/15/2021^(d)		2,224		2,224	Wynn Las Vegas LLC / Wynn Las Vegas
Wayne Merger Sub LLC					Capital Corp
8.25%, 08/01/2023^(d)		26,100		25,936	4.25%, 05/30/2023^(d)			950		846
Wilton Re Finance LLC					5.50%, 03/01/2025^(d)			10,000		9,386
5.88%, 03/30/2033^(d),(g)		8,450		8,896
								$		53,252
XLIT Ltd
6.50%, 12/31/2049^(f),(g)		1,200		957	Machinery - Diversified - 0.42%
York Risk Services Holding Corp					Cleaver-Brooks Inc
8.50%, 10/01/2022^(d)		7,600		6,688	8.75%, 12/15/2019^(d)			7,155		6,887
					9.75%, 12/31/2019^(c),(d),(e)			12,500		11,219
		$		193,273
					CNH Industrial Capital LLC
Internet - 0.49%					3.88%, 07/16/2018^(d)			950		952
Ancestry.com Inc					SPL Logistics Escrow LLC / SPL Logistics
11.00%, 12/15/2020		13,810		15,087	Finance Corp
Cogent Communications Group Inc					8.88%, 08/01/2020^(d)			7,044		7,467
5.38%, 03/01/2022^(d)		3,050		3,004	Tempel Steel Co
IAC/InterActiveCorp					12.00%, 08/15/2016 ^(d)			4,075		4,095
4.75%, 12/15/2022		2,395		2,251	Zebra Technologies Corp
Netflix Inc					7.25%, 10/15/2022			15,850		17,296
5.50%, 02/15/2022^(d)		6,029		6,361
								$		47,916
TIBCO Software Inc
11.38%, 12/01/2021 ^(d)		4,525		4,367	Media- 2.87	%
Zayo Group LLC / Zayo Capital Inc					Altice Financing SA
6.00%, 04/01/2023^(d)		18,095		18,448	6.63%, 02/15/2023^(d)			15,400		15,439
6.38%, 05/15/2025^(d)		6,650		6,733	Altice US Finance I Corp
					5.38%, 07/15/2023^(d)			4,000		4,048
		$		56,251
					Cable One Inc
Investment Companies - 0.05%					5.75%, 06/15/2022^(d)			7,317		7,500
American Capital Ltd
6.50%, 09/15/2018^(d)		3,000		3,097


	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)

Media (continued)					Metal Fabrication & Hardware (continued)
CCO Holdings LLC / CCO Holdings Capital					Shale-Inland Holdings LLC / Shale-Inland
Corp					Finance Corp
5.13%, 05/01/2023^(d)	$	17,825	$	17,869	8.75%, 11/15/2019^(d)	$	7,920	$	5,900
5.25%, 03/15/2021		5,650		5,834			$		18,269
6.63%, 01/31/2022		4,000		4,240
CCO Safari II LLC					Mining - 1.37%
4.46%, 07/23/2022^(d)		4,350		4,413	Aleris International Inc
Clear Channel Worldwide Holdings Inc					7.63%, 02/15/2018		6,345		5,933
6.50%, 11/15/2022		7,350		7,571	7.88%, 11/01/2020		3,340		3,140
6.50%, 11/15/2022		5,000		5,213	Barminco Finance Pty Ltd
					9.00%, 06/01/2018^(d)		3,680		2,870
7.63%, 03/15/2020		19,210		19,930
7.63%, 03/15/2020		5,140		5,217	Century Aluminum Co
					7.50%, 06/01/2021^(d)		32,532		27,490
Columbus International Inc
7.38%, 03/30/2021^(d)		5,793		6,025	Cia Brasileira de Aluminio
					4.75%, 06/17/2024^(d)		2,093		1,789
CSC Holdings LLC
5.25%, 06/01/2024		7,000		6,156	Cia Minera Ares SAC
					7.75%, 01/23/2021^(d)		2,066		2,004
6.75%, 11/15/2021		2,450		2,378
					Cia Minera Milpo SAA
DISH DBS Corp					4.63%, 03/28/2023^(d)		3,825		3,653
4.25%, 04/01/2018		2,150		2,147
5.00%, 03/15/2023		1,975		1,827	Corp Nacional del Cobre de Chile
					3.00%, 07/17/2022^(d)		19,454		18,369
5.13%, 05/01/2020		7,575		7,547
5.88%, 07/15/2022		2,150		2,107	3.88%, 11/03/2021		4,353		4,398
					4.25%, 07/17/2042^(d)		3,805		3,125
5.88%, 11/15/2024		7,900		7,556	4.50%, 08/13/2023^(d)		2,899		2,952
LGE HoldCo VI BV					4.50%, 09/16/2025^(d)		7,978		7,913
7.13%, 05/15/2024	EUR	5,400		6,449
					4.88%, 11/04/2044		2,650		2,359
McGraw-Hill Global Education Holdings LLC					4.88%, 11/04/2044^(d)		19,241		17,125
/ McGraw-Hill Global Education Finance					5.63%, 09/21/2035^(d)		2,185		2,223
9.75%, 04/01/2021	$	11,363		12,443
					6.15%, 10/24/2036		11,188		11,899
Midcontinent Communications &					Eldorado Gold Corp
Midcontinent Finance Corp					6.13%, 12/15/2020^(d)		10,225		9,381
6.88%, 08/15/2023^(d)		11,975		12,289
					Gold Fields Orogen Holdings BVI Ltd
Neptune Finco Corp					4.88%, 10/07/2020^(d)		1,640		1,328
6.63%, 10/15/2025^(d)		19,950		20,997
10.88%, 10/15/2025 ^(d)		7,500		8,006	Joseph T Ryerson & Son Inc
Nielsen Finance LLC / Nielsen Finance Co					9.00%, 10/15/2017		16,660		14,536
5.00%, 04/15/2022^(d)		13,503		13,722	Mirabela Nickel Ltd
					0.00%, 09/10/2044^(b),(c),(e)		138		—
Numericable-SFR SAS
4.88%, 05/15/2019^(d)		13,300		13,367	MMC Norilsk Nickel OJSC via MMC Finance
5.38%, 05/15/2022	EUR	2,550		2,902	Ltd
					6.63%, 10/14/2022^(d)		3,810		3,905
5.63%, 05/15/2024		1,550		1,744
6.00%, 05/15/2022^(d)	$	1,100		1,103	Southern Copper Corp
Quebecor Media Inc					5.25%, 11/08/2042		1,944		1,574
5.75%, 01/15/2023		1,600		1,640	Vedanta Resources PLC
					6.00%, 01/31/2019^(d)		881		705
RCN Telecom Services LLC / RCN Capital					7.13%, 05/31/2023^(d)		236		175
Corp
8.50%, 08/15/2020^(d)		6,929		7,284	Yamana Gold Inc
Sirius XM Radio Inc					4.95%, 07/15/2024		7,500		6,881
5.38%, 04/15/2025^(d)		2,600		2,662			$		155,727
6.00%, 07/15/2024^(d)		21,450		22,647
					Miscellaneous Manufacturers - 0.24%
TEGNA Inc					Amsted Industries Inc
5.13%, 07/15/2020		2,250		2,346	5.00%, 03/15/2022^(d)		6,186		6,248
Tribune Media Co					5.38%, 09/15/2024^(d)		8,794		8,684
5.88%, 07/15/2022^(d)		4,675		4,804	CBC Ammo LLC / CBC FinCo Inc
Unitymedia GmbH					7.25%, 11/15/2021^(d)		7,350		6,872
6.13%, 01/15/2025^(d)		20,800		21,294
					Gates Global LLC / Gates Global Co
Unitymedia Hessen GmbH & Co KG /					5.75%, 07/15/2022	EUR	1,500		1,336
Unitymedia NRW GmbH					Trinseo Materials Operating SCA / Trinseo
4.00%, 01/15/2025	EUR	2,750		3,024	Materials Finance Inc
5.00%, 01/15/2025^(d)	$	5,350		5,323	6.38%, 05/01/2022		3,400		3,727
5.50%, 01/15/2023^(d)		5,367		5,516
							$		26,867
Univision Communications Inc
5.13%, 02/15/2025^(d)		1,300		1,277	Mortgage Backed Securities - 0.11%
8.50%, 05/15/2021^(d)		5,500		5,748	BCAP LLC 2013-RR4 Trust
VTR Finance BV					4.07%, 02/13/2051^(c),(d),(g)	$	40,390		1,568
6.88%, 01/15/2024^(d)		8,515		8,238	6.07%, 02/13/2051^(c),(d),(g)		11,334		11,359
Ziggo Bond Finance BV							$		12,927
5.88%, 01/15/2025^(d)		8,898		8,475
					Municipals - 0.01%
		$		326,317	Bogota Distrito Capital
Metal Fabrication & Hardware - 0.16%					9.75%, 07/26/2028	COP	1,900,000		704
Optimas OE Solutions Holding LLC / Optimas
OE Solutions Inc
8.63%, 06/01/2021^(d)		13,020		12,369


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's)	Value(000	's)	BONDS (continued)		Amount (000's) Value (000's)

Oil & Gas - 5.05%					Oil & Gas (continued)
Antero Resources Corp					Legacy Reserves LP / Legacy Reserves
5.13%, 12/01/2022	$	3,300	$ 2,962		Finance Corp (continued)
5.38%, 11/01/2021		8,400	7,728		8.00%, 12/01/2020	$	10,148	$	7,205
5.63%, 06/01/2023^(d)		5,000	4,600		Lonestar Resources America Inc
Atlas Energy Holdings Operating Co LLC /					8.75%, 04/15/2019^(d)		2,850		1,902
Atlas Resource Finance Corp					Lukoil International Finance BV
7.75%, 01/15/2021^(e)		9,283	3,806		3.42%, 04/24/2018		7,690		7,495
9.25%, 08/15/2021^(e)		10,462	4,289		Memorial Production Partners LP / Memorial
Bill Barrett Corp					Production Finance Corp
7.63%, 10/01/2019		6,022	4,622		6.88%, 08/01/2022		22,729		14,319
Blue Racer Midstream LLC / Blue Racer					7.63%, 05/01/2021		13,322		8,926
Finance Corp					Memorial Resource Development Corp
6.13%, 11/15/2022^(d)		6,942	6,491		5.88%, 07/01/2022		5,925		5,584
BreitBurn Energy Partners LP / BreitBurn					Milagro Oil & Gas Inc
Finance Corp					0.00%, 05/15/2016^(b),(e)		5,765		1,758
7.88%, 04/15/2022		29,951	11,232		Pacific Exploration and Production Corp
8.63%, 10/15/2020		6,460	2,875		5.13%, 03/28/2023^(d)		2,897		1,058
CNOOC Finance 2015 USA LLC					5.63%, 01/19/2025^(d)		4,050		1,519
3.50%, 05/05/2025		5,272	5,116		Pertamina Persero PT
Comstock Resources Inc					4.30%, 05/20/2023^(d)		5,893		5,567
10.00%, 03/15/2020 ^(d)		10,150	6,623		5.25%, 05/23/2021		1,000		1,024
CrownRock LP / CrownRock Finance Inc					6.50%, 05/27/2041		320		298
7.13%, 04/15/2021^(d)		1,500	1,521		Petrobras Global Finance BV
7.75%, 02/15/2023^(d)		8,133	8,377		3.88%, 01/27/2016		659		657
Delek & Avner Tamar Bond Ltd					5.38%, 01/27/2021		3,380		2,750
5.08%, 12/30/2023^(d)		2,306	2,341		6.88%, 01/20/2040		4,000		2,880
5.41%, 12/30/2025^(d)		952	967		8.38%, 12/10/2018		460		460
Ecopetrol SA					Petroleos de Venezuela SA
4.13%, 01/16/2025		616	543		5.13%, 10/28/2016		23,378		17,557
5.88%, 05/28/2045		7,271	5,926		5.25%, 04/12/2017		24,324		13,682
7.38%, 09/18/2043		1,200	1,143		5.50%, 04/12/2037		6,500		2,223
EP Energy LLC / Everest Acquisition Finance					6.00%, 05/16/2024		7,000		2,511
Inc					8.50%, 11/02/2017		78,763		47,841
6.38%, 06/15/2023		5,300	3,988		Petroleos Mexicanos
9.38%, 05/01/2020		4,850	4,219		4.88%, 01/18/2024		6,252		6,247
EP PetroEcuador via Noble Sovereign					5.63%, 01/23/2046^(d)		26,260		22,644
Funding I Ltd					6.38%, 01/23/2045		5,814		5,509
5.96%, 09/24/2019^(g)		24,202	19,241		6.50%, 06/02/2041		700		672
Gazprom OAO Via Gaz Capital SA					Precision Drilling Corp
4.30%, 11/12/2015^(d)		900	900		5.25%, 11/15/2024		3,550		2,938
4.95%, 07/19/2022^(d)		4,677	4,513		PTT Exploration & Production PCL
6.00%, 01/23/2021^(d)		2,126	2,154		4.88%, 12/29/2049^(d),(f),(g)		6,955		6,861
6.51%, 03/07/2022^(d)		4,260	4,431		Puma International Financing SA
6.51%, 03/07/2022		3,325	3,459		6.75%, 02/01/2021^(d)		11,117		11,246
8.15%, 04/11/2018^(d)		2,754	2,980		QEP Resources Inc
9.25%, 04/23/2019		14,392	16,173		5.25%, 05/01/2023		3,050		2,707
9.25%, 04/23/2019^(d)		3,701	4,159		Rex Energy Corp
GeoPark Latin America Ltd Agencia en Chile					6.25%, 08/01/2022		7,620		3,124
7.50%, 02/11/2020^(d)		3,520	2,420		8.88%, 12/01/2020		5,580		2,790
Gulfport Energy Corp					Rosneft Oil Co via Rosneft International
7.75%, 11/01/2020		6,400	6,336		Finance Ltd
IronGate Energy Services LLC					3.15%, 03/06/2017^(d)		8,898		8,781
11.00%, 07/01/2018 ^(d),(e)		2,400	1,464		4.20%, 03/06/2022^(d)		4,786		4,271
KazMunayGas National Co JSC					SandRidge Energy Inc
4.40%, 04/30/2023^(d)		20,418	17,968		7.50%, 03/15/2021		3,450		828
4.40%, 04/30/2023		1,959	1,724		8.13%, 10/15/2022		6,600		1,551
4.88%, 05/07/2025^(d)		2,807	2,470		8.75%, 06/01/2020^(d)		5,000		3,056
5.75%, 04/30/2043^(d)		10,655	8,202		Seven Generations Energy Ltd
5.75%, 04/30/2043		2,309	1,777		6.75%, 05/01/2023^(d)		3,200		2,912
6.00%, 11/07/2044^(d)		13,164	10,288		8.25%, 05/15/2020^(d)		4,645		4,506
6.00%, 11/07/2044		5,248	4,101		Sinopec Capital 2013 Ltd
6.38%, 04/09/2021		19,827	20,031		3.13%, 04/24/2023^(d)		2,439		2,347
6.38%, 04/09/2021^(d)		21,460	21,681		Sinopec Group Overseas Development 2012
7.00%, 05/05/2020		7,695	8,000		Ltd
7.00%, 05/05/2020^(d)		1,829	1,901		4.88%, 05/17/2042^(d)		1,053		1,081
9.13%, 07/02/2018^(d)		3,041	3,354		State Oil Co of the Azerbaijan Republic
Keane Group Holdings					4.75%, 03/13/2023		7,340		6,334
8.75%, 08/08/2019^(c),(e),(g)		2,230	1,773		5.45%, 02/09/2017		2,161		2,199
8.75%, 08/08/2019^(c),(e),(g)		6,691	5,319		Summit Midstream Holdings LLC / Summit
Legacy Reserves LP / Legacy Reserves					Midstream Finance Corp
Finance Corp					5.50%, 08/15/2022		900		783
6.63%, 12/01/2021		20,891	13,789		7.50%, 07/01/2021		786		762


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)

Oil & Gas (continued)					Pipelines (continued)
Teine Energy Ltd					Genesis Energy LP / Genesis Energy Finance
6.88%, 09/30/2022^(d)	$	2,190	$	1,971	Corp
Ultra Petroleum Corp					6.75%, 08/01/2022		$	1,335	$	1,302
5.75%, 12/15/2018^(d)		8,250		5,527	Gibson Energy Inc
Unit Corp					6.75%, 07/15/2021^(d)			9,350		9,046
6.63%, 05/15/2021		9,640		7,712	Oleoducto Central SA
YPF SA					4.00%, 05/07/2021^(d)			2,264		2,207
8.50%, 07/28/2025^(d)		2,772		2,725	Rose Rock Midstream LP / Rose Rock
8.75%, 04/04/2024^(d)		11,547		11,702	Finance Corp
8.88%, 12/19/2018		3,895		4,022	5.63%, 07/15/2022			3,250		2,763
8.88%, 12/19/2018^(d)		2,132		2,202	Sabine Pass Liquefaction LLC
Zhaikmunai LLP					5.63%, 04/15/2023			9,040		8,797
6.38%, 02/14/2019^(d)		1,318		1,071	6.25%, 03/15/2022			4,224		4,192
7.13%, 11/13/2019^(d)		7,482		6,098				$		34,731
		$		574,372
					Real Estate - 0.25%
Oil & Gas Services - 0.05%					China Overseas Finance Cayman V Ltd
BIBBY Offshore Services PLC					3.95%, 11/15/2022			1,800		1,787
7.50%, 06/15/2021	GBP	1,300		1,543	Country Garden Holdings Co Ltd
FTS International Inc					7.25%, 04/04/2021^(d)			250		261
6.25%, 05/01/2022	$	6,543		1,505	7.25%, 04/04/2021			690		720
7.84%, 06/15/2020^(d),(g)		4,050		2,815	Deutsche Raststaetten Gruppe IV GmbH
		$		5,863	6.75%, 12/30/2020		EUR	2,800		3,320
					Greystar Real Estate Partners LLC
Packaging & Containers - 0.44%					8.25%, 12/01/2022^(d)		$	2,250		2,368
Ardagh Packaging Finance PLC					Kennedy-Wilson Inc
9.25%, 10/15/2020	EUR	4,500		5,195	5.88%, 04/01/2024			9,200		9,119
Ball Corp					Longfor Properties Co Ltd
5.25%, 07/01/2025	$	550		559	6.88%, 10/18/2019			2,730		2,918
Berry Plastics Corp					MAF Global Securities Ltd
5.13%, 07/15/2023		4,200		4,158	7.13%, 10/29/2049^(f),(g)			8,124		8,409
6.00%, 10/15/2022^(d)		4,150		4,337
								$		28,902
Crown European Holdings SA
4.00%, 07/15/2022	EUR	1,000		1,148	Regional Authority - 0.13%
Horizon Holdings I SASU					Brazil Loan Trust 1
7.25%, 08/01/2023^(d)		500		572	5.48%, 07/24/2023^(d)			8,647		7,674
Horizon Holdings III SASU					Provincia de Buenos Aires/Argentina
5.13%, 08/01/2022		800		915	9.38%, 09/14/2018			5,670		5,755
Novelis Inc					9.63%, 04/18/2028^(d)			1,400		1,418
8.75%, 12/15/2020	$	7,700		7,719				$		14,847
Reynolds Group Issuer Inc / Reynolds Group
Issuer LLC / Reynolds Group Issuer					REITS- 0.27	%
(Luxembourg) S.A.					DuPont Fabros Technology LP
5.75%, 10/15/2020		12,800		13,312	5.63%, 06/15/2023			2,175		2,235
6.88%, 02/15/2021^(g)		5,700		5,956	Equinix Inc
SIG Combibloc Holdings SCA					4.88%, 04/01/2020			2,800		2,926
7.75%, 02/15/2023	EUR	5,100		5,919	5.38%, 01/01/2022			3,515		3,672
					5.38%, 04/01/2023			4,000		4,160
		$		49,790
					GEO Group Inc/The
Pharmaceuticals - 0.48%					5.88%, 10/15/2024			5,200		5,252
Capsugel SA					Iron Mountain Inc
7.00%, PIK 7.75%, 05/15/2019^(d),(i)	$	7,625		7,682	6.00%, 10/01/2020^(d)			12,150		12,879
DPx Holdings BV								$		31,124
7.50%, 02/01/2022^(d)		650		663
					Retail - 1.22%
Endo Ltd / Endo Finance LLC / Endo Finco					1011778 BC ULC / New Red Finance Inc
Inc					4.63%, 01/15/2022^(d)			7,950		8,069
6.00%, 07/15/2023^(d)		5,650		5,650
					6.00%, 04/01/2022^(d)			28,740		30,070
JLL/Delta Dutch Pledgeco BV
8.75%, PIK 9.50%, 05/01/2020^(d),(i)		8,200		8,374	99 Cents Only Stores LLC
Valeant Pharmaceuticals International					11.00%, 12/15/2019			7,372		3,833
6.38%, 10/15/2020^(d)		9,625		8,614	AmeriGas Finance LLC / AmeriGas Finance
Valeant Pharmaceuticals International Inc					Corp
4.50%, 05/15/2023	EUR	4,800		4,268	7.00%, 05/20/2022			6,290		6,636
5.50%, 03/01/2023^(d)	$	10,825		9,093	Carrols Restaurant Group Inc
5.88%, 05/15/2023^(d)		11,800		9,934	8.00%, 05/01/2022			2,400		2,550
					Checkers Drive-In Restaurants Inc
		$		54,278	11.00%, 12/01/2017 ^(d)			7,970		8,408
Pipelines - 0.30%					Douglas GmbH
Crestwood Midstream Partners LP /					6.25%, 07/15/2022		EUR	1,000		1,158
Crestwood Midstream Finance Corp					Ferrellgas LP / Ferrellgas Finance Corp
6.13%, 03/01/2022		3,847		3,308	6.50%, 05/01/2021		$	500		464
Enterprise Products Operating LLC					6.75%, 01/15/2022			3,400		3,154
7.03%, 01/15/2068^(g)		2,950		3,116	6.75%, 06/15/2023^(d)			9,900		9,133


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)

Retail (continued)					Sovereign (continued)
Jo-Ann Stores Holdings Inc					Argentine Republic Government International
9.75%, PIK 10.50%, 10/15/2019 ^(d),(i)	$	2,775	$	2,095	Bond (continued)
Jo-Ann Stores LLC					0.00%, 12/31/2033^(b)	EUR	7,921	$	8,980
8.13%, 03/15/2019^(d)		8,932		8,150	0.00%, 12/31/2033^(b)		1,697		1,905
L Brands Inc					0.00%, 12/15/2035^(b),(g)	$	15,989		1,578
6.88%, 11/01/2035^(d)		1,550		1,610	0.00%, 12/31/2038^(b)	EUR	3,000		1,823
Men's Wearhouse Inc/The					Banco Nacional de Desenvolvimento
7.00%, 07/01/2022		2,700		2,808	Economico e Social
Nathan's Famous Inc					5.50%, 07/12/2020	$	1,080		1,015
10.00%, 03/15/2020 ^(d)		28,010		29,691	Brazil Minas SPE via State of Minas Gerais
NPC International Inc / NPC Operating Co A					5.33%, 02/15/2028^(g)		9,802		7,977
Inc / NPC Operating Co B Inc					Brazil Notas do Tesouro Nacional Serie F
10.50%, 01/15/2020		4,600		4,842	10.00%, 01/01/2025	BRL	28,880		5,493
Petco Animal Supplies Inc					10.00%, 01/01/2017		17,550		4,310
9.25%, 12/01/2018^(d)		3,200		3,292	Brazilian Government International Bond
Pizzaexpress Financing 2 PLC					2.63%, 01/05/2023	$	1,100		909
6.63%, 08/01/2021	GBP	2,500		4,007	4.25%, 01/07/2025		54,753		48,525
Stonegate Pub Co Financing PLC					5.00%, 01/27/2045		24,307		18,230
5.75%, 04/15/2019		1,600		2,480	5.63%, 01/07/2041		7,614		6,224
Suburban Propane Partners LP/Suburban					7.13%, 01/20/2037		14,241		13,849
Energy Finance Corp					7.13%, 01/20/2037		1,220		1,186
5.50%, 06/01/2024	$	6,400		6,208	8.25%, 01/20/2034		5,563		5,938
5.75%, 03/01/2025		350		337	Colombia Government International Bond
		$		138,995	4.00%, 02/26/2024		6,392		6,274
					4.38%, 07/12/2021		8,184		8,430
Semiconductors - 0.11%					4.50%, 01/28/2026		4,030		3,990
Micron Technology Inc					5.00%, 06/15/2045		12,475		11,072
5.25%, 08/01/2023^(d)		10,400		10,161
5.63%, 01/15/2026^(d)		2,400		2,256	5.63%, 02/26/2044		1,085		1,050
					6.13%, 01/18/2041		2,000		2,055
		$		12,417	7.38%, 09/18/2037		2,685		3,115
Software - 1.32%					7.75%, 04/14/2021	COP	3,538,000		1,243
Aspect Software Inc					8.13%, 05/21/2024	$	5,615		6,943
10.63%, 05/15/2017 ^(e)		10,501		9,083	9.85%, 06/28/2027	COP	6,738,000		2,708
Audatex North America Inc					11.75%, 02/25/2020	$	2,082		2,769
6.00%, 06/15/2021^(d)		8,400		8,459	10.38%, 01/28/2033		5,359		7,663
6.13%, 11/01/2023^(d)		27,400		27,571	Colombian TES
Emdeon Inc					7.75%, 09/18/2030	COP	12,905,300		4,212
6.00%, 02/15/2021^(d)		9,750		9,567	10.00%, 07/24/2024		816,000		320
Ensemble S Merger Sub Inc					Costa Rica Government International Bond
9.00%, 09/30/2023^(d)		8,500		8,521	4.25%, 01/26/2023	$	25,117		22,605
Epicor / Eagle Parent 2L Note					4.38%, 04/30/2025^(d)		10,307		8,916
9.25%, 06/01/2023^(c),(g)		15,000		14,550	4.38%, 04/30/2025		4,750		4,109
					7.00%, 04/04/2044^(d)		11,735		10,561
First Data Corp
7.00%, 12/01/2023^(d),(h)		2,400		2,442	7.16%, 03/12/2045^(d)		3,000		2,707
8.75%, PIK 10.00%, 01/15/2022 ^(d),(i)		2,320		2,443	7.16%, 03/12/2045		18,175		16,403
Infor US Inc					Croatia Government International Bond
6.50%, 05/15/2022^(d)		18,200		17,245	3.88%, 05/30/2022	EUR	3,500		3,868
					5.50%, 04/04/2023^(d)	$	4,487		4,622
Italics Merger Sub Inc
7.13%, 07/15/2023^(d)		8,750		8,680	5.50%, 04/04/2023		4,694		4,835
Microsoft Corp					6.00%, 01/26/2024^(d)		12,711		13,458
4.20%, 11/03/2035^(h)		2,900		2,915	6.38%, 03/24/2021^(d)		10,249		11,030
					6.75%, 11/05/2019^(d)		6,205		6,750
Nuance Communications Inc
5.38%, 08/15/2020^(d)		18,307		18,673	6.75%, 11/05/2019		7,609		8,277
Open Text Corp					Dominican Republic International Bond
5.63%, 01/15/2023^(d)		14,375		14,519	5.88%, 04/18/2024^(d)		23,849		24,266
SS&C Technologies Holdings Inc					6.60%, 01/28/2024		8,380		8,904
5.88%, 07/15/2023^(d)		5,550		5,828	7.45%, 04/30/2044^(d)		18,877		19,915
		$		150,496	7.50%, 05/06/2021		9,351		10,169
					7.50%, 05/06/2021^(d)		2,600		2,827
Sovereign - 11.43%					Ecuador Government International Bond
Argentina Bonar Bonds					9.38%, 12/15/2015		6,450		6,353
7.00%, 04/17/2017^(e)		35,463		35,137	10.50%, 03/24/2020 ^(d)		3,350		2,780
Argentine Republic Government International					10.50%, 03/24/2020		3,445		2,859
Bond					Egypt Government International Bond
0.00%, 11/14/2002^(b),(e)	EUR	734		743	5.88%, 06/11/2025^(d)		15,674		14,655
0.00%, 11/26/2003^(b),(e)		320		324	6.88%, 04/30/2040^(d)		2,250		2,016
0.00%, 03/04/2004^(b),(e)		545		551	El Salvador Government International Bond
0.00%, 09/07/2007^(b),(e)		532		544	5.88%, 01/30/2025		2,041		1,811
0.00%, 05/26/2009^(b),(e)		2,200		2,250	6.38%, 01/18/2027^(d)		2,705		2,414
0.00%, 03/31/2023^(b),(e),(g)	$	2,110		2,448	7.65%, 06/15/2035		10,649		9,651
0.00%, 03/31/2023^(b),(e)		5,543		6,430	7.75%, 01/24/2023		7,288		7,397
0.00%, 03/31/2023^(b),(e)	EUR	1,755		1,795	8.25%, 04/10/2032		4,231		4,215


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	Principal					Principal
BONDS (continued)	Amount (000's)		Value(000	's)	BONDS (continued)	Amount (000's) Value (000's)

Sovereign (continued)					Sovereign (continued)
EMATUM Via Mozambique EMATUM					Nigeria Government International
Finance 2020 BV					Bond (continued)
6.31%, 09/11/2020	$	3,880	$ 3,446		6.38%, 07/12/2023	$	8,473	$	7,965
Export Credit Bank of Turkey					6.75%, 01/28/2021		8,941		8,809
5.38%, 11/04/2016^(d)		250	257		Panama Government International Bond
Federal Democratic Republic of Ethiopia					3.75%, 03/16/2025		5,970		5,910
6.63%, 12/11/2024^(d)		5,733	5,317		4.30%, 04/29/2053		2,665		2,372
Gabon Government International Bond					6.70%, 01/26/2036		2,716		3,361
6.38%, 12/12/2024^(d)		10,504	9,034		8.13%, 04/28/2034		9,109		12,183
6.95%, 06/16/2025^(d)		3,357	2,933		8.88%, 09/30/2027		2,019		2,852
Hungary Government Bond					9.38%, 04/01/2029		5,795		8,526
3.50%, 06/24/2020	HUF	2,575,000	9,527		Panama Notas del Tesoro
5.50%, 06/24/2025		1,160,000	4,804		4.88%, 02/05/2021		5,853		6,159
Hungary Government International Bond					Perusahaan Penerbit SBSN Indonesia III
5.75%, 11/22/2023	$	2,327	2,621		4.35%, 09/10/2024^(d)		2,935		2,851
Indonesia Government International Bond					Peruvian Government International Bond
3.38%, 04/15/2023^(d)		20,272	19,316		5.63%, 11/18/2050		2,621		2,831
3.38%, 07/30/2025^(d)	EUR	5,740	6,081		6.55%, 03/14/2037		1,109		1,339
4.13%, 01/15/2025	$	5,545	5,417		8.75%, 11/21/2033		1,575		2,299
4.88%, 05/05/2021		3,755	3,945		Republic of Angola Via Northern Lights III
5.13%, 01/15/2045^(d)		3,232	3,031		BV
5.25%, 01/17/2042^(d)		2,000	1,899		7.00%, 08/16/2019		4,345		4,226
5.25%, 01/17/2042		2,766	2,626		Republic of Azerbaijan International Bond
5.88%, 03/13/2020		3,000	3,329		4.75%, 03/18/2024^(d)		12,369		11,855
5.88%, 03/13/2020^(d)		2,000	2,219		Republic of Ghana
5.88%, 01/15/2024^(d)		16,041	17,711		7.88%, 08/07/2023^(d)		4,704		4,035
6.63%, 02/17/2037		4,545	4,995		8.13%, 01/18/2026^(d)		10,976		9,322
6.75%, 01/15/2044^(d)		2,937	3,324		8.13%, 01/18/2026		1,000		849
7.75%, 01/17/2038		3,643	4,497		8.50%, 10/04/2017		1,910		1,922
8.50%, 10/12/2035		6,760	8,864		10.75%, 10/14/2030 ^(d)		10,126		10,724
11.63%, 03/04/2019 ^(d)		850	1,088		Republic of Honduras
Indonesia Treasury Bond					8.75%, 12/16/2020		348		388
7.00%, 05/15/2022	IDR	10,060,000	666		Republic of Iraq
7.88%, 04/15/2019		57,520,000	4,085		5.80%, 01/15/2028^(e)		28,521		20,892
8.38%, 03/15/2024		168,811,000	12,014		Republic of Paraguay
8.38%, 09/15/2026		149,000,000	10,443		4.63%, 01/25/2023^(d)		5,134		5,185
9.00%, 03/15/2029		23,100,000	1,675		6.10%, 08/11/2044^(d)		6,565		6,663
Ivory Coast Government International Bond					Republic of Serbia
5.38%, 07/23/2024^(d)	$	1,872	1,675		5.88%, 12/03/2018		1,014		1,076
5.38%, 07/23/2024		1,000	895		5.88%, 12/03/2018^(d)		9,469		10,037
5.75%, 12/31/2032^(g)		36,538	32,519		7.25%, 09/28/2021		813		929
6.38%, 03/03/2028^(d)		14,022	12,918		Romania Government Bond
Jamaica Government International Bond					5.95%, 06/11/2021	RON	27,430		7,936
6.75%, 04/28/2028		13,420	13,654		Russian Federal Bond - OFZ
7.63%, 07/09/2025		11,175	12,181		7.00%, 08/16/2023	RUB	563,000		7,481
7.88%, 07/28/2045		3,540	3,575		Russian Foreign Bond - Eurobond
10.63%, 06/20/2017		1,000	1,120		4.50%, 04/04/2022	$	2,000		2,045
Kazakhstan Government International Bond					4.88%, 09/16/2023		17,200		17,780
5.13%, 07/21/2025^(d)		3,961	3,940		5.00%, 04/29/2020		5,000		5,256
6.50%, 07/21/2045^(d)		9,095	8,874		5.63%, 04/04/2042		14,400		14,350
Kenya Government International Bond					Slovakia Government International Bond
6.88%, 06/24/2024		2,434	2,257		4.38%, 05/21/2022^(d)		848		954
6.88%, 06/24/2024^(d)		11,944	11,075		Slovenia Government International Bond
Lithuania Government International Bond					5.25%, 02/18/2024^(d)		5,425		6,076
6.13%, 03/09/2021^(d)		4,990	5,841		5.50%, 10/26/2022^(d)		1,075		1,217
Mexican Bonos					South Africa Government Bond
7.75%, 05/29/2031^(g)	MXN	199,000	13,545		8.75%, 01/31/2044	ZAR	71,000		4,939
8.00%, 06/11/2020^(g)		111,000	7,503		10.50%, 12/21/2026		90,000		7,507
10.00%, 12/05/2024 ^(g)		136,500	10,578		South Africa Government International Bond
Mexico Government International Bond					4.67%, 01/17/2024	$	7,242		7,314
3.50%, 01/21/2021	$	27,184	27,959		5.88%, 09/16/2025		19,341		21,019
3.60%, 01/30/2025		4,269	4,248		Sri Lanka Government International Bond
4.00%, 10/02/2023		8,601	8,876		5.13%, 04/11/2019^(d)		248		244
4.60%, 01/23/2046		12,881	11,947		5.88%, 07/25/2022^(d)		6,635		6,386
4.75%, 03/08/2044		15,517	14,741		6.13%, 06/03/2025^(d)		7,203		6,799
6.05%, 01/11/2040		10,736	12,132		6.25%, 10/04/2020^(d)		11,155		11,200
Morocco Government International Bond					6.85%, 11/03/2025^(d),(h)		6,200		6,130
4.25%, 12/11/2022^(d)		3,589	3,614		Turkey Government Bond
Namibia International Bonds					8.00%, 03/12/2025^(g)	TRY	31,800		9,871
5.25%, 10/29/2025^(d)		4,483	4,438		10.50%, 01/15/2020 ^(g)		26,539		9,358
Nigeria Government International Bond					Turkey Government International Bond
6.38%, 07/12/2023^(d)		1,940	1,824		3.25%, 03/23/2023	$	22,514		20,929


Schedule of Investments
Global Diversified Income Fund
October 31, 2015



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)

Sovereign (continued)					Telecommunications (continued)
Turkey Government International					Empresa de Telecomunicaciones de Bogota
Bond (continued)					7.00%, 01/17/2023^(d)	COP	8,325,000	$	2,529
4.25%, 04/14/2026	$	1,465	$	1,406	Empresa Nacional de Telecomunicaciones
4.88%, 04/16/2043		4,503		4,054	SA
5.13%, 03/25/2022		4,708		4,924	4.75%, 08/01/2026^(d)	$	2,444		2,377
5.63%, 03/30/2021		4,539		4,879	4.88%, 10/30/2024^(d)		2,289		2,292
5.75%, 03/22/2024		8,204		8,851	Frontier Communications Corp
6.00%, 01/14/2041		8,177		8,596	7.13%, 01/15/2023		1,700		1,517
6.25%, 09/26/2022		2,363		2,623	8.88%, 09/15/2020^(d)		13,925		14,456
6.75%, 04/03/2018		2,570		2,795	Hughes Satellite Systems Corp
6.88%, 03/17/2036		866		996	7.63%, 06/15/2021		10,225		11,145
7.00%, 06/05/2020		3,924		4,446	Intelsat Jackson Holdings SA
7.38%, 02/05/2025		8,012		9,583	7.25%, 04/01/2019		4,350		4,078
7.50%, 11/07/2019		4,006		4,589	Interoute Finco PLC
8.00%, 02/14/2034		6,768		8,663	7.38%, 10/15/2020^(d)	EUR	7,700		8,937
Ukreximbank Via Biz Finance PLC					Koninklijke KPN NV
9.63%, 04/27/2022		4,475		4,060	7.00%, 03/28/2073^(d),(g)	$	400		414
Uruguay Government International Bond					Level 3 Financing Inc
4.38%, 10/27/2027		845		839	5.13%, 05/01/2023^(d)		4,900		4,955
Venezuela Government International Bond					5.38%, 08/15/2022		6,400		6,512
5.75%, 02/26/2016		12,247		11,145	5.38%, 01/15/2024^(d),(h)		9,550		9,670
9.00%, 05/07/2023		10,110		3,968	5.38%, 05/01/2025^(d)		2,650		2,657
13.63%, 08/15/2018 ^(e)		6,000		3,228	6.13%, 01/15/2021		4,700		4,953
Zambia Government International Bond					7.00%, 06/01/2020		2,000		2,120
5.38%, 09/20/2022		1,560		1,154	Matterhorn Telecom Holding SA
8.50%, 04/14/2024^(d)		6,088		5,135	4.88%, 05/01/2023	EUR	5,595		5,276
8.97%, 07/30/2027^(d)		10,980		9,196	Millicom International Cellular SA
		$		1,300,955	6.00%, 03/15/2025	$	3,350		2,755
					6.63%, 10/15/2021^(d)		3,631		3,177
Supranational Bank - 0.25%					MTN Mauritius Investments Ltd
African Export-Import Bank					4.76%, 11/11/2024^(d)		1,050		966
3.88%, 06/04/2018		3,600		3,627	Oi SA
Eastern and Southern African Trade and					5.75%, 02/10/2022^(d)		2,500		1,550
Development Bank					9.75%, 09/15/2016^(d)	BRL	6,695		1,528
6.38%, 12/06/2018		3,270		3,310	Qualitytech LP/QTS Finance Corp
European Bank for Reconstruction &					5.88%, 08/01/2022	$	6,170		6,340
Development					Sirius XM Canada Holdings Inc
5.63%, 03/15/2017	INR	130,000		1,968	5.63%, 04/23/2021^(d)	CAD	3,600		2,726
Inter-American Development Bank					Sixsigma Networks Mexico SA de CV
7.25%, 07/17/2017	IDR	105,000,000		7,136	8.25%, 11/07/2021^(d)	$	2,464		2,402
International Finance Corp					Sprint Capital Corp
6.45%, 10/30/2018	INR	275,670		4,190	6.90%, 05/01/2019		3,300		3,168
7.75%, 12/03/2016		179,000		2,762	Sprint Communications Inc
7.80%, 06/03/2019		317,670		5,004	7.00%, 03/01/2020^(d)		2,050		2,152
		$		27,997	9.00%, 11/15/2018^(d)		3,950		4,343
Telecommunications - 2.69%					Sprint Corp
Alcatel-Lucent USA Inc					7.25%, 09/15/2021		13,300		12,219
6.75%, 11/15/2020^(d)	$	5,952		6,324	7.63%, 02/15/2025		3,150		2,796
Altice Luxembourg SA					TBG Global Pte Ltd
7.25%, 05/15/2022	EUR	5,400		5,760	4.63%, 04/03/2018^(d)		3,015		3,000
Avaya Inc					Telecom Italia SpA
7.00%, 04/01/2019^(d)	$	5,450		4,428	3.25%, 01/16/2023	EUR	3,500		3,998
B Communications Ltd					Telefonica Celular del Paraguay SA
7.38%, 02/15/2021^(d)		5,292		5,742	6.75%, 12/13/2022^(d)	$	875		792
Bharti Airtel International Netherlands BV					Telefonica Europe BV
5.13%, 03/11/2023^(d)		1,823		1,934	4.20%, 12/29/2049^(f),(g)	EUR	3,400		3,773
5.35%, 05/20/2024		1,350		1,450	Telemar Norte Leste SA
					5.50%, 10/23/2020^(d)	$	1,325		901
CenturyLink Inc
5.63%, 04/01/2020		5,000		5,006	Telenet Finance V Luxembourg SCA
5.63%, 04/01/2025		5,225		4,689	6.25%, 08/15/2022	EUR	2,000		2,367
Colombia Telecomunicaciones SA ESP					6.75%, 08/15/2024		2,900		3,500
8.50%, 12/29/2049^(d),(f),(g)		4,219		3,771	T-Mobile USA Inc
Comcel Trust via Comunicaciones Celulares					6.00%, 03/01/2023	$	3,485		3,474
SA					6.46%, 04/28/2019		1,280		1,317
6.88%, 02/06/2024^(d)		5,065		4,039	Turk Telekomunikasyon AS
					4.88%, 06/19/2024^(d)		2,474		2,388
CommScope Inc
4.38%, 06/15/2020^(d)		7,450		7,599	UPC Holding BV
CommScope Technologies Finance LLC					6.38%, 09/15/2022	EUR	4,600		5,425
6.00%, 06/15/2025^(d)		10,625		10,785	UPCB Finance IV Ltd
					5.38%, 01/15/2025^(d)	$	6,650		6,658
Digicel Group Ltd
7.13%, 04/01/2022^(d)		11,858		9,783	ViaSat Inc
8.25%, 09/30/2020^(d)		8,140		7,203	6.88%, 06/15/2020		3,500		3,666


		Principal					SENIOR FLOATING RATE INTERESTS		Principal
BONDS (continued)		Amount (000's) Value (000's)					(continued)		Amount (000's) Value (000's)

Telecommunications (continued)							Aerospace & Defense - 0.04%
Vimpel Communications Via VIP Finance							DAE Aviation Holdings Inc, Term Loan
Ireland Ltd OJSC							5.25%, 06/24/2022^(g)		$	4,600	$	4,583
7.75%, 02/02/2021		$		500	$	532
VimpelCom Holdings BV
5.95%, 02/13/2023^(d)				8,030		7,679	Agriculture - 0.16%
7.50%, 03/01/2022^(d)				5,288		5,565	North Atlantic Trading Co Inc, Term Loan B
							7.83%, 01/13/2020^(g)			7,477		7,383
Virgin Media Finance PLC
6.00%, 10/15/2024^(d)				14,725		14,835	NVA Holdings Inc/United States, Term Loan
							8.00%, 08/08/2022^(g)			3,400		3,360
6.38%, 10/15/2024		GBP		4,200		6,591	8.00%, 08/08/2022^(g)			7,639		7,550
6.38%, 10/15/2024^(d)				3,300		5,178
Virgin Media Secured Finance PLC										$		18,293
5.25%, 01/15/2026^(d)		$		3,400		3,400	Automobile Manufacturers - 0.03%
Wind Acquisition Finance SA							Navistar Inc, Term Loan B
4.75%, 07/15/2020^(d)				4,425		4,502	6.50%, 08/16/2017^(g)			3,600		3,384
7.00%, 04/23/2021		EUR		3,650		4,145
7.38%, 04/23/2021^(d)		$		3,375		3,400
				$		305,609	Automobile Parts & Equipment - 0.10%
							BBB Industries US Holdings Inc, Term Loan
Transportation - 0.33%							B
BNSF Funding Trust I							6.00%, 10/15/2021^(g)			1,990		1,983
6.61%, 12/15/2055^(g)				4,610		5,168	Dealer Tire LLC, Term Loan
CEVA Group PLC							5.50%, 12/17/2021^(g)			1,985		1,997
7.00%, 03/01/2021^(d)				8,945		8,084	Mavis Tire Supply Corp, Term Loan
Kazakhstan Temir Zholy Finance BV							6.25%, 11/02/2020^(c),(e),(g)			7,132		7,025
6.38%, 10/06/2020^(d)				3,555		3,473				$		11,005
Lima Metro Line 2 Finance Ltd
5.88%, 07/05/2034^(d)				1,725		1,738	Beverages - 0.01%
							Arctic Glacier USA Inc, Term Loan B
Pelabuhan Indonesia II PT							6.00%, 05/10/2019^(g)			1,253		1,184
4.25%, 05/05/2025^(d)				3,470		3,184
5.38%, 05/05/2045^(d)				1,640		1,365
XPO Logistics Inc							Building Materials - 0.04%
5.75%, 06/15/2021		EUR		4,175		4,149	GYP Holdings III Corp, Term Loan B
6.50%, 06/15/2022^(d)		$		7,200		6,426	4.75%, 03/26/2021^(g)			4,728		4,582
7.88%, 09/01/2019^(d)				3,500		3,522
				$		37,109
							Chemicals - 0.16%
							Road Infrastructure Investment LLC, Term
TOTAL BONDS			$	7,359,147			Loan
		Principal					7.75%, 09/21/2021^(e),(g)			440		409
CONVERTIBLE BONDS - 0.04%		Amount (000's) Value (000's)					Royal Holdings Inc/IN, Term Loan
Banks- 0.01	%						8.50%, 06/12/2023^(g)			11,870		11,821
ING Groep NV							Solenis International LP, Term Loan
6.50%, 12/29/2049^(f),(g)				1,000		962	7.75%, 07/02/2022^(g)			6,100		5,688
										$		17,918

Mining - 0.03%							Coal- 0.01	%
Mirabela Nickel Ltd							Westmoreland Coal Co, Term Loan B
9.50%, PIK 9.50%, 06/24/2019^(d),(e),(i)				6,349		3,174	7.50%, 12/16/2020^(g)			883		696

TOTAL CONVERTIBLE BONDS				$		4,136	Commercial Services - 0.25%
CREDIT LINKED STRUCTURED NOTES		Principal					Busy Bees Group Ltd, Term Loan
- 0.07	%	Amount (000's) Value (000's)					5.19%, 04/29/2022^(g)		GBP	1,200		1,835
Sovereign - 0.07%							Concentra Inc, Term Loan B
Republic of Iraq - Merrill Lynch							9.00%, 04/22/2023^(g)		$	10,200		10,149
2.53%, 01/07/2028^(c),(e),(g)		JPY		559,328		2,903	9.00%, 04/22/2023^(g)			4,920		4,896
Titulos De Tesoreria B - Citigroup Inc							Lineage Logistics LLC, Term Loan B
11.00%, 07/27/2020 ^(d)		COP		12,000,000		4,774	4.50%, 03/31/2021^(g)			1,227		1,173
				$		7,677	Packers Holdings LLC, Term Loan B
							5.00%, 12/02/2021^(g)			1,147		1,145
TOTAL CREDIT LINKED STRUCTURED NOTES				$		7,677
							Taxware Holdings, Term Loan
SENIOR FLOATING RATE INTERESTS -				Principal			7.50%, 04/01/2022^(c),(g)			2,095		2,074
7.18	%	Amount (000's) Value (000's)
							Verisure Holding AB, Term Loan
Advertising - 0.01%							0.00%, 10/21/2022^(g),(j)			1,000		998
Acosta Inc, Term Loan B							Washington Inventory Service, Term Loan
4.25%, 09/26/2021^(g)		$		896	$	873	10.25%, 06/18/2019 ^(e),(g)			6,800		6,596
										$		28,866

							Computers - 0.04%
							Expert Global Solutions Inc/Georgia, Term
							Loan B
							8.50%, 04/02/2018^(g)			4,379		4,332


SENIOR FLOATING RATE INTERESTS		Principal				SENIOR FLOATING RATE INTERESTS		Principal
(continued)		Amount (000's) Value (000's)				(continued)		Amount (000's) Value (000's)

Distribution & Wholesale - 0.20%						Healthcare - Products (continued)
Beacon Roofing Supply Inc, Term Loan B						Physio-Control International Inc, Term Loan
4.00%, 09/23/2022^(g)		$	1,500	$	1,498	B (continued)
Foundation Building Materials LLC, Term						10.00%, 05/19/2023 ^(g)	$	19,440	$	18,176
Loan								$		33,575
7.25%, 10/07/2022^(g)			2,800		2,674
11.50%, 10/06/2023 ^(g)			14,370		13,508	Healthcare - Services - 0.77%
						Affordable Care Holding Corp, Term Loan
HBC Holdings LLC, Term Loan B						5.75%, 10/22/2020^(g)		3,600		3,528
6.75%, 09/30/2019^(c),(e),(g)			3,465		3,361
Performance Food Group Inc, Term Loan						American Renal Holdings Inc, Delay-Draw
6.25%, 11/07/2019^(g)			1,190		1,188	Term Loan DD
						8.50%, 02/14/2020^(g)		5,899		5,884
			$		22,229
						Dialysis Newco Inc, Term Loan
Diversified Financial Services - 0.19%						7.75%, 10/21/2021^(g)		2,000		2,015
Connolly Corp, Term Loan						7.75%, 10/21/2021^(g)		12,277		12,369
8.00%, 05/13/2022^(g)			22,255		22,060	HC Group Holdings III Inc, Term Loan B
						6.00%, 03/25/2022^(g)		12,500		12,516
						Heartland Dental LLC, Term Loan
Electric - 0.05%						5.50%, 12/21/2018^(g)		16,213		15,970
Invenergy Thermal Operating I LLC, Term						9.75%, 06/20/2019^(g)		21,740		21,595
Loan
6.50%, 10/05/2022^(g)			6,200		6,138	Surgery Center Holdings Inc, Term Loan
						8.50%, 07/23/2021^(g)		5,031		4,968
						US Renal Care Inc, Term Loan B1
Electronics - 0.22%						8.50%, 01/03/2020^(g)		2,900		2,925
CPI Buyer LLC, Term Loan						8.50%, 01/03/2020^(g)		5,390		5,437
8.50%, 07/18/2022^(e),(g)			10,160		10,033			$		87,207
Linxens France SA, Term Loan
0.00%, 07/31/2023^(e),(g),(j)			15,795		15,558	Holding Companies - Diversified - 0.07%
						Spirit Retail Bidco Ltd, Term Loan
			$		25,591	4.32%, 06/30/2021^(c),(e),(g)		7,730		7,575
Engineering & Construction - 0.01%
NANA Development Corp, Term Loan B
8.00%, 03/13/2018^(e),(g)			750		724	Home Furnishings - 0.01%
						Targus Group International Inc, PIK Term
						Loan B
Entertainment - 0.28%						14.54%, PIK 1.00%, 05/24/2016 ^(e),(g),(i)		1,296		952
Amaya Holdings BV, Term Loan
0.00%, 08/01/2021^(g),(j)			10,000		9,755

Cyan Blue Holdco 3 Ltd, Term Loan						Insurance - 0.52%
6.41%, 02/09/2022^(g)		GBP	7,700		11,862	Alliant Holdings I LLC, Term Loan B
						4.50%, 07/27/2022^(g)		2,993		2,954
Delta 2 Lux Sarl, Term Loan B
7.75%, 07/29/2022^(g)		$	10,260		9,766	AssuredPartners Inc, Term Loan
						5.75%, 10/14/2022^(g)		3,450		3,448
			$		31,383	Asurion LLC, Term Loan
Environmental Control - 0.12%						8.50%, 02/19/2021^(g)		21,950		19,709
Infiltrator Systems Integrated LLC, Term						8.50%, 02/19/2021^(g)		30,985		27,822
Loan						Hyperion Insurance Group Ltd, Term Loan B
9.75%, 05/19/2023^(g)			14,000		13,860	5.50%, 03/26/2022^(g)		5,028		5,028
								$		58,961

Food- 0.29	%					Internet - 0.52%
AdvancePierre Foods Inc, Term Loan						Accuvant, Term Loan
9.50%, 10/02/2017^(g)			10,081		9,980	6.25%, 01/28/2022^(g)		3,980		3,955
Albertsons LLC, Term Loan B4						10.00%, 01/30/2023 ^(g)		27,705		27,185
5.50%, 08/11/2021^(g)			7,445		7,441	Active Network Inc/The, Term Loan B
American Seafoods Group LLC, Term Loan						5.50%, 11/06/2020^(g)		1,576		1,559
6.00%, 08/04/2021^(g)			3,300		3,251	EIG Investors Corp, Term Loan B
CTI Foods Holding Co LLC, Term Loan						5.00%, 11/09/2019^(g)		3,589		3,585
8.25%, 06/14/2019^(g)			3,360		3,125	Landslide Holdings Inc, Term Loan
Milk Specialties Co, Term Loan B						5.00%, 02/25/2020^(g)		3,626		3,594
8.25%, 11/07/2018^(g)			9,614		9,557	ProQuest LLC, Term Loan B
			$		33,354	5.25%, 09/24/2021^(g)		5,482		5,395
						Severin Acquisition LLC, Term Loan
Hand & Machine Tools - 0.01%						5.50%, 07/31/2023^(c),(e),(g)		2,650		2,624
Milacron LLC, Term Loan B						TCH-2 Holdings LLC, Term Loan
4.50%, 09/28/2020^(g)			1,585		1,587
						8.75%, 11/06/2021^(g)		4,700		4,606
						Tibco Software Inc, Term Loan
Healthcare - Products - 0.30%						6.50%, 11/25/2020^(g)		7,464		7,063
CareCore National LLC, Term Loan								$		59,566
5.50%, 02/12/2021^(g)			4,831		4,300
5.50%, 02/12/2021^(g)			8,160		7,262	Leisure Products & Services - 0.11%
						Equinox Holdings Inc, Term Loan
Physio-Control International Inc, Term Loan						9.75%, 05/16/2020^(g)		12,500		12,594
B
5.50%, 05/19/2022^(g)			3,905		3,837


SENIOR FLOATING RATE INTERESTS		Principal				SENIOR FLOATING RATE INTERESTS		Principal
(continued)		Amount (000's) Value (000's)				(continued)		Amount (000's) Value (000's)

Lodging - 0.17%						Pharmaceuticals (continued)
Parq Holdings LP, Delay-Draw Term Loan						BioScrip Inc, Delay-Draw Term Loan B-DD
DD						6.50%, 07/22/2020^(g)	$	5,830	$	5,305
8.50%, 12/17/2020^(g)		$	3,357	$	3,290	BioScrip Inc, Term Loan B
Parq Holdings LP, Term Loan						6.50%, 06/05/2020^(g)		9,717		8,843
8.50%, 12/04/2020^(g)			16,414		16,086	Lanai Holdings III Inc, Term Loan
			$		19,376	8.75%, 08/14/2023^(g)		16,800		16,548
						MedImpact OpCo Holdings Inc, Term Loan
Machinery - Diversified - 0.24%						0.00%, 09/30/2022^(g),(j)		4,850		4,832
CPM Holdings Inc, Term Loan
10.25%, 12/02/2022 ^(e),(g)			15,780		15,780	Nellson Nutraceutical LLC, Term Loan A1
						6.00%, 12/23/2021^(g)		1,470		1,455
CPM Holdings Inc, Term Loan B
6.00%, 04/01/2022^(g)			8,838		8,830	P2 Lower Acquisition LLC, Term Loan
						9.50%, 10/18/2021^(g)		5,225		5,160
Pro Mach Group Inc, Term Loan B
4.75%, 10/15/2021^(g)			2,780		2,772	PharMEDium Healthcare Corp, Term Loan
						7.75%, 01/28/2022^(g)		20,561		20,604
			$		27,382			$		63,651

Media- 0.14	%					Retail - 0.39%
Cengage Learning Acquisitions Inc, Term						99 Cents Only Stores LLC, Term Loan B2
Loan EXIT						0.00%, 01/11/2019^(g),(j)		1,780		1,412
7.00%, 03/06/2020^(g)			4,070		4,041
						Dollar Tree Inc, Term Loan B2
CSC Holdings LLC, Term Loan						4.19%, 05/26/2022^(g)		3,300		3,301
5.00%, 09/23/2022^(g)			3,300		3,309

Cumulus Media Holdings Inc, Term Loan B						Genoa a QoL Healthcare Co LLC, Term
4.25%, 12/18/2020^(g)			1,146		972	Loan
						8.75%, 04/28/2023^(g)		3,716		3,697
Numericable US LLC, Term Loan						GOBP Holdings Inc, Term Loan B
0.00%, 01/20/2023^(g),(j)			2,800		2,767
						4.75%, 10/15/2021^(g)		2,680		2,653
Springer Science+Business Media GmbH,						Mattress Holding Corp, Term Loan B
Term Loan B9						4.19%, 10/01/2021^(g)		4,426		4,421
4.75%, 08/14/2020^(g)			5,277		5,224
						Nautilus Merger Sub Inc, Term Loan
			$		16,313	6.75%, 03/11/2022^(g)		13,312		12,845
Metal Fabrication & Hardware - 0.00%						Nautilus Merger Sub Inc, Term Loan B
						4.00%, 03/12/2021^(g)		2,487		2,391
Doncasters Group Ltd, Term Loan
9.50%, 10/28/2020^(g)			270		268	PetSmart Inc, Term Loan B
						4.25%, 03/10/2022^(g)		2,736		2,735
						Sears Roebuck Acceptance Corp, Term Loan
Mining - 0.02%						B
Chemstralia Pty Ltd, Term Loan B						5.50%, 06/30/2018^(g)		11,433		11,072
7.25%, 02/09/2022^(g)			1,990		1,965
								$		44,527

						Semiconductors - 0.02%
Miscellaneous Manufacturers - 0.10%						Sensata Technologies BV, Term Loan B
Survitec Group Ltd, Term Loan						3.00%, 10/11/2021^(g)		2,687		2,684
5.26%, 02/24/2022^(g)		GBP	1,100		1,670
UTEX Industries Inc, Term Loan
8.25%, 05/16/2022^(g)		$	8,890		7,068	Software - 0.35%
UTEX Industries Inc, Term Loan B						Advanced Computer Software Group PLC,
5.00%, 05/14/2021^(g)			3,358		2,847	Term Loan
			$		11,585	10.50%, 01/30/2023 ^(g)		5,100		4,902
						Air Newco LLC, Term Loan B
Oil & Gas - 0.02%						6.50%, 01/28/2022^(g)		4,577		4,549
Petrochoice Holdings Inc, Term Loan						Compuware Corp, Term Loan B1
(g)
6.00%, 07/30/2022			2,500		2,444	6.25%, 12/11/2019^(g)		4,331		4,127
						Evergreen Skills Lux Sarl, Term Loan
						9.25%, 04/28/2022^(g)		14,157		10,689
Oil & Gas Services - 0.01%
FTS International Inc, Term Loan						Infor US Inc, Term Loan B3
5.75%, 04/09/2021^(g)			1,300		330	3.75%, 06/03/2020^(g)		298		290
Panda Temple Power II LLC, Term Loan B						Infor US Inc, Term Loan B5
7.25%, 04/03/2019^(g)			850		731	3.75%, 06/03/2020^(g)		478		464
			$		1,061	Informatica Corp, Term Loan B
						4.50%, 06/03/2022^(g)		2,600		2,563
Packaging & Containers - 0.27%						MA FinanceCo LLC, Term Loan B
Berlin Packaging LLC, Term Loan						5.26%, 10/07/2021^(g)		1,535		1,532
7.75%, 09/23/2022^(g)			17,050		16,709	Magic Newco LLC, Term Loan
Dysart Merger Sub Inc, Term Loan						12.00%, 12/06/2019 ^(g)		10,000		10,756
5.50%, 08/13/2021^(g)			1,995		1,978
								$		39,872
FPC Holdings Inc, Term Loan
9.25%, 05/15/2020^(e),(g)			9,400		9,024	Telecommunications - 0.28%
Prolampac Intermediate Inc, Term Loan						Avaya Inc, Term Loan B6
5.00%, 08/06/2022^(g)			2,460		2,435	6.50%, 03/31/2018^(g)		3,276		2,725
			$		30,146	Avaya Inc, Term Loan B7
						6.25%, 04/30/2020^(g)		6,971		5,336
Pharmaceuticals - 0.56%						Gogo Intermediate Holdings LLC, Term Loan
9089969 Canada Inc, Term Loan A2						B1
6.00%, 12/23/2021^(g)			913		904	11.25%, 06/21/2017 ^(e),(g)		4,281		4,281

Schedule of Investments
Global Diversified Income Fund
October 31, 2015


SENIOR FLOATING RATE INTERESTS		Principal					Portfolio Summary (unaudited)
(continued)				Amount (000's)		Value (000's)	Country	Percent
							United States	63.45	%

							United Kingdom	2.79	%
Telecommunications (continued)
	Gogo Intermediate Holdings LLC, Term Loan						Canada	2.52	%
	B2
	7.50%, 03/21/2018^(g)	$		1,397	$	1,341	Luxembourg	1.96	%
							Netherlands	1.84	%
LTS Buyer LLC, Term Loan
	8.00%, 03/28/2021^(g)			5,947		5,779	Mexico	1.63	%
							France	1.42	%
LTS Buyer LLC, Term Loan B
	4.00%, 04/01/2020^(g)			3,491		3,434	Brazil	1.23	%
							Indonesia	1.20	%
Tower Development Corp, Term Loan
	6.75%, 02/01/2017^(c),(e),(g)			8,617		8,617	Turkey	1.12	%
							Kazakhstan	1.08	%
				$		31,513
							Germany	1.03	%
Transportation - 0.09%							Cayman Islands	1.00	%
CEVA Group PLC, SYNTH LOC							Australia	0.94	%
	6.50%, 03/19/2021^(g)			649		569	Venezuela	0.88	%
CEVA Group PLC, Term Loan							Japan	0.87	%
	6.50%, 03/12/2021^(g)			930		815	Colombia	0.80	%
	6.50%, 03/19/2021^(g)			116		102	Argentina	0.79	%
CEVA Intercompany BV, Term Loan							Chile	0.73	%
	6.50%, 03/19/2021^(g)			674		591	Hong Kong	0.67	%
SIRVA Worldwide Inc, Term Loan							South Africa	0.65	%
	7.50%, 03/22/2019^(g)			6,739		6,435	Dominican Republic	0.58	%
XPO Logistics Inc, Term Loan							Costa Rica	0.57	%
	0.00%, 10/27/2021^(g),(j)			2,000		1,980	Ireland	0.49	%
				$		10,492	Bermuda	0.47	%
TOTAL SENIOR FLOATING RATE INTERESTS				$		816,351	Croatia	0.45	%
Total Investments			$	11,216,213			Russian Federation	0.43	%
Other Assets in Excess of Liabilities, Net - 1.40%				$		159,104	Cote d'Ivoire	0.42	%
TOTAL NET ASSETS - 100.00%			$	11,375,317			Virgin Islands, British	0.38	%
							Panama	0.38	%
							Spain	0.36	%
(a)	Security or a portion of the security was pledged to cover margin						Singapore	0.34	%
	requirements for options contracts. At the end of the period, the value of						Italy	0.32	%
	these securities totaled $198,996 or 1.75% of net assets.						Sri Lanka	0.27	%
(b)	Non-Income Producing Security						Jamaica	0.27	%
(c)	Fair value of these investments is determined in good faith by the Manager						China	0.25	%
	under procedures established and periodically reviewed by the Board of						Ghana	0.25	%
	Directors. At the end of the period, the fair value of these securities totaled						Sweden	0.23	%
	$114,523 or 1.01% of net assets.						El Salvador	0.22	%
(d)	Security exempt from registration under Rule 144A of the Securities Act of						Taiwan, Province Of China	0.21	%
	1933. These securities may be resold in transactions exempt from						Iraq	0.21	%
	registration, normally to qualified institutional buyers. At the end of the						Jersey, Channel Islands	0.20	%
	period, the value of these securities totaled $3,499,741 or 30.77% of net						Azerbaijan	0.18	%
	assets.						Nigeria	0.17	%
(e)	Security is Illiquid. At the end of the period, the value of these securities						Egypt	0.15	%
	totaled $313,733 or 2.76% of net assets.						Hungary	0.15	%
(f)	Perpetual security. Perpetual securities pay an indefinite stream of						Marshall Islands	0.15	%
	interest, but they may be called by the issuer at an earlier date.						Zambia	0.13	%
(g)	Variable Rate. Rate shown is in effect at October 31, 2015.						Switzerland	0.13	%
(h)	Security purchased on a when-issued basis.						Kenya	0.12	%
(i)	Payment in kind; the issuer has the option of paying additional securities						Paraguay	0.12	%
	in lieu of cash.						Gabon	0.11	%
(j)	This Senior Floating Rate Note will settle after October 31, 2015, at which						Serbia	0.11	%
	time the interest rate will be determined.						Peru	0.10	%
							Ecuador	0.10	%
							Israel	0.09	%
							Finland	0.09	%
							Norway	0.08	%
							Morocco	0.08	%
							Romania	0.07	%
							Thailand	0.06	%
							Slovenia	0.06	%
							Ethiopia	0.05	%
							Barbados	0.05	%
							Belgium	0.05	%
							Lithuania	0.05	%
							Guernsey	0.04	%
							India	0.04	%
							Namibia	0.04	%
							Austria	0.04	%
							Curacao	0.02	%
							Mongolia	0.02	%
							New Zealand	0.02	%
							Mauritius	0.01	%

(a) The maximum potential payment amount that the seller of credit protection could be required to make if a credit event occurs as defined under the terms of that particular swap agreement is $20,000.

(b) The market price and resulting market value for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit default swap as of the period end. Increasing market 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.

(c) 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 requiredtobe 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.


Foreign Currency Contracts

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For		Fair Value		Asset		Liability
Bank of America NA	11/04/2015	BRL	10,224,900	$	2,700	$	2,650	$	—	$	(50	)
Bank of America NA	11/09/2015	GBP	1,600,000		2,445		2,466		21		—
Barclays Bank PLC	11/17/2015	COP	18,482,275,370		6,308		6,371		63		—
JP Morgan Chase	11/04/2015	BRL	22,211,049		5,550		5,757		207		—
JP Morgan Chase	11/05/2015	EUR	2,222,747		2,460		2,444		—		(16	)
JP Morgan Chase	11/09/2015	EUR	45,107,102		50,493		49,604		—		(889	)
JP Morgan Chase	11/09/2015	GBP	1,059,209		1,628		1,633		8		(3	)
JP Morgan Chase	11/09/2015	RUB	347,873,712		5,474		5,439		62		(97	)
JP Morgan Chase	12/02/2015	BRL	12,341,327		3,096		3,169		73		—
Standard Chartered Bank, Hong Kong	11/25/2015	MXN	51,544,118		3,096		3,117		21		—
Standard Chartered Bank, Hong Kong	12/04/2015	COP	23,268,000,000		8,000		8,006		6		—
Total								$	461	$	(1,055	)
									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset		Liability
Bank of America NA	11/04/2015	BRL	10,404,920	$	2,690	$	2,697	$	—	$	(7	)
Bank of America NA	11/09/2015	CAD	3,590,000		2,747		2,745		2		—
Bank of America NA	11/09/2015	EUR	18,400,000		20,655		20,234		421		—
Bank of America NA	11/09/2015	GBP	11,600,000		17,656		17,881		—		(225	)
Bank of America NA	11/25/2015	EUR	13,627,263		15,101		14,988		113		—
Bank of America NA	11/25/2015	HUF	871,716,305		3,099		3,086		13		—
Bank of New York Mellon	12/10/2015	GBP	100,000		154		154		—		—
Bank of New York Mellon	12/17/2015	GBP	225,000		349		347		2		—
Bank of New York Mellon	01/07/2016	GBP	2,150,000		3,291		3,313		—		(22	)
Bank of New York Mellon	01/22/2016	GBP	825,000		1,276		1,271		5		—
Barclays Bank PLC	11/25/2015	EUR	2,294,535		2,542		2,524		18		—
HSBC Securities Inc	11/25/2015	MXN	139,641,633		8,439		8,443		—		(4	)
JP Morgan Chase	11/04/2015	BRL	22,033,161		5,529		5,711		—		(182	)
JP Morgan Chase	11/05/2015	EUR	212,096,693		240,723		233,236		7,487		—
JP Morgan Chase	11/09/2015	EUR	9,896,334		11,015		10,883		143		(11	)
JP Morgan Chase	11/09/2015	GBP	40,342,200		61,212		62,187		—		(975	)
JP Morgan Chase	11/09/2015	JPY	353,243,000		2,952		2,928		24		—
JP Morgan Chase	11/25/2015	ZAR	46,915,943		3,438		3,379		59		—
JP Morgan Chase	11/27/2015	COP	37,124,640,000		12,423		12,783		—		(360	)
JP Morgan Chase	11/27/2015	IDR	241,738,110,000		17,684		17,526		158		—
JP Morgan Chase	12/02/2015	BRL	12,251,549		3,096		3,146		—		(50	)


Schedule of Investments
Global Diversified Income Fund
October 31, 2015


Foreign Currency Contracts (continued)

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date		Contracts to Deliver	In Exchange For			Fair Value				Asset		Liability
Standard Chartered Bank, Hong Kong	11/25/2015	MXN	40,864,620	$	2,478	$	2,471			$	7	$	—
Total									$		8,452	$	(1,836	)

Amounts in thousands except contracts


Options

							Upfront Premiums					Unrealized
Written Options Outstanding	Exercise Price		Expiration Date	Contracts	Paid/(Received)				Fair Value		Appreciation/(Depreciation)
Call - iShares MSCI EAFE ETF	$	62.00	11/22/2015	77,467	$		(4,715	) $	(3,003	)	$		1,712
Call - iShares MSCI Emerging Markets ETF	$	37.00	11/22/2015	47,981			(2,705	)	(355	)			2,350
Call - iShares Russell 2000 ETF	$	118.00	11/22/2015	2,841			(283	)	(213	)			70
Call - iShares US Real Estate ETF	$	77.00	11/22/2015	3,464			(98	)	(126	)			(28	)
Call - SPDR Dow Jones Industrial Average ETF $		175.00	11/22/2015	20,144			(2,029	)	(6,324	)			(4,295	)
Trust
Call - SPDR S&P 500 ETF Trust	$	207.00	11/22/2015	30,016			(3,675	)	(9,491	)			(5,816	)
Call - SPDR S&P MidCap 400 ETF Trust	$	265.00	11/22/2015	1,656			(385	)	(409	)			(24	)
Call - Utilities Select Sector SPDR Fund	$	46.00	11/22/2015	5,783			(131	)	(27	)			104
Total					$		(14,021	) $	(19,948	)	$		(5,927	)

Amounts in thousands except contracts


COMMON STOCKS - 97.44%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held	Value(000			's)

Holding Companies - Diversified - 0.99%				REITS (continued)
Wharf Holdings Ltd/The	4,943,880	$	29,418	Workspace Group PLC	2,419,539		$	35,636
						$		2,158,769

Lodging - 1.03%				Storage & Warehousing - 0.52%
Accor SA	610,679		30,326	Safestore Holdings PLC	3,058,601			15,319

				TOTAL COMMON STOCKS		$		2,879,153
Real Estate - 21.84%
Aeon Mall Co Ltd	2,493,900		41,717	INVESTMENT COMPANIES - 1.64%	Shares Held	Value(000			's)
CapitaLand Ltd	14,816,600		32,684	Publicly Traded Investment Fund - 1.64%
Cheung Kong Property Holdings Ltd	2,134,000		14,932	Morgan Stanley Institutional Liquidity Funds -	48,442,368			48,442
China Resources Land Ltd	5,250,000		13,643	Government Portfolio
Dalian Wanda Commercial Properties Co Ltd	3,707,000		24,741
(a)
				TOTAL INVESTMENT COMPANIES		$		48,442
Deutsche Wohnen AG	2,209,153		62,274	Total Investments		$		2,927,595
Fabege AB	2,116,986		33,632	Other Assets in Excess of Liabilities, Net - 0.92%		$		27,082
Hongkong Land Holdings Ltd	6,609,343		49,558	TOTAL NET ASSETS - 100.00%		$		2,954,677
Mitsubishi Estate Co Ltd	4,002,077		85,831
Mitsui Fudosan Co Ltd	3,585,793		97,583
New World Development Co Ltd	30,810,000		32,862	(a) Security exempt from registration under Rule 144A of the Securities Act of
Sun Hung Kai Properties Ltd	5,812,577		77,643	1933. These securities may be resold in transactions exempt from
TLG Immobilien AG	752,848		14,162	registration, normally to qualified institutional buyers. At the end of the
UNITE Group PLC/The	4,403,375		45,063	period, the value of these securities totaled $24,741 or 0.84% of net assets.
Wihlborgs Fastigheter AB	971,657		18,996
	$		645,321

REITS - 73.06%				Portfolio Summary (unaudited)
Alexandria Real Estate Equities Inc	346,680		31,111	Country				Percent
American Tower Corp	233,141		23,834	United States				55.77	%
Apartment Investment & Management Co	1,271,733		49,839	United Kingdom				9.24	%
AvalonBay Communities Inc	434,600		75,981	Japan				8.49	%
Big Yellow Group PLC	677,139		7,817	Hong Kong				7.52	%
Boston Properties Inc	517,085		65,075	Australia				5.15	%
Care Capital Properties Inc	276,260		9,103	France				4.84	%
CubeSmart	2,062,565		57,381	Germany				2.59	%
DDR Corp	1,534,643		25,782	Sweden				1.78	%
Derwent London PLC	359,049		21,443	Spain				1.75	%
Duke Realty Corp	1,899,375		39,317	Singapore				1.11	%
Education Realty Trust Inc	417,622		14,997	China				0.84	%
EPR Properties	376,637		21,397	Other Assets in Excess of Liabilities, Net				0.92	%
Equinix Inc	84,190		24,978	TOTAL NET ASSETS				100.00	%
Equity One Inc	1,106,583		29,413
Equity Residential	1,108,736		85,727
Essex Property Trust Inc	449,635		99,118
Federal Realty Investment Trust	263,722		37,841
First Industrial Realty Trust Inc	1,554,404		33,699
General Growth Properties Inc	2,201,865		63,744
Goodman Group	10,216,207		43,831
Great Portland Estates PLC	3,986,145		54,591
Hammerson PLC	1,493,458		14,632
Host Hotels & Resorts Inc	1,864,271		32,308
Hudson Pacific Properties Inc	552,591		15,788
Kilroy Realty Corp	635,100		41,815
Klepierre	1,482,053		70,190
Land Securities Group PLC	3,795,826		78,200
Macerich Co/The	115,730		9,807
Merlin Properties Socimi SA	4,033,761		51,692
Mirvac Group	29,733,711		38,007
Nomura Real Estate Master Fund Inc	20,606		26,110
Pebblebrook Hotel Trust	1,023,411		34,980
Prologis Inc	1,946,185		83,161
Public Storage	462,281		106,075
Saul Centers Inc	211,722		11,871
Simon Property Group Inc	1,056,537		212,850
SL Green Realty Corp	605,002		71,765
Spring Real Estate Investment Trust	10,288,900		4,114
STORE Capital Corp	575,545		13,048
Sun Communities Inc	348,790		23,376
Sunstone Hotel Investors Inc	2,062,948		29,830
Unibail-Rodamco SE	151,913		42,282
Ventas Inc	1,182,743		63,537
VEREIT Inc	967,358		7,990
Vornado Realty Trust	163,921		16,482
Welltower Inc	567,372		36,805
Westfield Corp	9,703,322		70,399

Schedule of Investments Government & High Quality Bond Fund October 31, 2015


INVESTMENT COMPANIES - 3.19%		Shares Held			Value (000's)			Principal
						BONDS (continued)	Amount (000's)			Value (000's)
Publicly Traded Investment Fund - 3.19%
Goldman Sachs Financial Square Funds -		49,366,634		$	49,367	Commercial Mortgage Backed Securities (continued)
Government Fund						WFRBS Commercial Mortgage Trust 2013-
						C14
TOTAL INVESTMENT COMPANIES			$		49,367	4.00%, 06/15/2046^(a),(b)	$	2,500	$	2,250
		Principal				WFRBS Commercial Mortgage Trust 2014-
BONDS- 31.04	%	Amount (000's)			Value (000's)	C22
						3.91%, 09/15/2057^(a),(b)		4,840		3,952
Commercial Mortgage Backed Securities - 14.00%						WFRBS Commercial Mortgage Trust 2014-
CFCRE Commercial Mortgage Trust 2011-						C23
C1						4.38%, 10/15/2057^(a)		9,700		10,059
5.84%, 04/15/2044^(a),(b)		$	3,000	$	3,296	WFRBS Commercial Mortgage Trust 2014-
Citigroup Commercial Mortgage Trust 2013-						LC14
GC17						4.34%, 03/15/2047^(a)		8,000		7,934
4.54%, 11/10/2046			6,363		6,889			$		216,899
COMM 2014-UBS4 Mortgage Trust
4.62%, 08/10/2047^(a)			5,000		4,814	Home Equity Asset Backed Securities - 0.83%
Ginnie Mae						ACE Securities Corp Mortgage Loan Trust
0.16%, 04/16/2053^(a)			21,319		566	Series 2007-D1
0.50%, 05/16/2053^(a)			56,153		2,845	6.34%, 02/25/2038^(a),(b)		4,110		3,966
0.53%, 01/16/2054^(a)			46,533		2,263	6.93%, 02/25/2038^(b)		9,077		8,989
0.57%, 02/16/2053^(a)			71,074		3,480			$		12,955
0.59%, 08/16/2053^(a)			20,323		682
0.61%, 12/16/2053^(a)			37,125		1,871	Mortgage Backed Securities - 15.99%
0.63%, 08/16/2051^(a)			91,784		5,013	BNPP Mortgage Securities LLC 2009-1
0.65%, 04/16/2053^(a)			29,485		1,510	Trust
						6.00%, 08/27/2037^(b)		6,757		7,077
0.67%, 10/16/2053^(a)			44,280		2,377
0.69%, 03/16/2049^(a)			39,534		1,631	Citigroup Mortgage Loan Trust 2010-9
						4.25%, 01/25/2036^(b)		2,965		3,051
0.71%, 04/16/2047^(a)			110,370		6,090
0.74%, 11/16/2045^(a)			44,879		2,456	Citigroup Mortgage Loan Trust 2014-A
						5.43%, 01/25/2035^(a),(b)		6,741		7,163
0.76%, 09/16/2053^(a)			31,430		1,335
0.77%, 12/16/2053^(a)			112,822		6,675	Fannie Mae Interest Strip
0.78%, 06/16/2054^(a)			73,836		3,444	3.50%, 12/25/2043		7,567		1,344
						7.00%, 04/25/2024^(a)		65		14
0.80%, 06/16/2052^(a)			43,076		2,204
0.83%, 11/16/2052^(a)			60,610		3,934	Fannie Mae REMICS
						0.80%, 04/25/2027^(a)		15		15
0.84%, 02/16/2053^(a)			89,473		6,181
						1.83%, 08/25/2044^(a)		65,568		5,121
0.85%, 10/16/2054^(a)			59,862		3,004
0.87%, 04/16/2056^(a)			39,986		2,777	2.00%, 12/25/2042		5,614		4,626
						2.50%, 02/25/2028^(a)		25,478		2,262
0.88%, 03/16/2052^(a)			71,466		5,352
0.88%, 02/16/2053^(a)			51,654		3,449	2.50%, 11/25/2041		7,219		7,359
0.89%, 06/16/2054^(a)			31,588		1,729	3.00%, 04/25/2045		5,088		4,698
						3.50%, 01/25/2028^(a)		24,245		2,881
0.91%, 02/16/2053^(a)			61,659		4,029
						3.50%, 06/25/2033^(a)		25,311		2,870
0.94%, 01/16/2056^(a)			25,878		1,846
						3.50%, 01/25/2040^(a)		28,455		3,622
0.95%, 07/16/2047^(a)			88,200		5,995
						3.50%, 11/25/2042^(a)		31,519		5,852
0.95%, 02/16/2056^(a)			48,776		3,768
0.96%, 02/16/2046^(a)			66,669		4,167	3.50%, 02/25/2043		1,907		2,000
0.96%, 09/16/2053^(a)			60,674		3,910	4.00%, 06/25/2039		10,000		10,586
0.96%, 01/16/2057^(a)			38,258		3,122	4.00%, 12/25/2039		15,562		1,701
1.01%, 10/16/2056^(a)			44,745		3,882	7.00%, 04/25/2032		1,724		1,977
1.03%, 12/16/2053^(a)			16,155		939	9.00%, 05/25/2020		17		19
1.04%, 10/16/2053^(a)			19,841		1,173	Freddie Mac REMICS
						1.10%, 02/15/2021^(a)		10		10
1.22%, 03/16/2049^(a)			37,656		2,367
						1.97%, 10/15/2040^(a)		61,728		4,554
2.63%, 09/16/2055^(a)			6,533		6,526
						2.01%, 10/15/2040^(a)		49,548		3,598
2.75%, 02/16/2055			12,000		12,062	2.50%, 11/15/2032		7,643		7,586
3.00%, 09/16/2049			6,200		5,935	2.50%, 01/15/2043^(a)		19,665		2,790
3.48%, 07/16/2045^(a)			6,443		6,690
						2.50%, 02/15/2043		3,979		3,901
GS Mortgage Securities Trust 2011-GC5
5.31%, 08/10/2044^(a),(b)			4,624		4,708	3.00%, 08/15/2028		4,712		4,840
						3.00%, 11/15/2030^(a)		10,590		929
GS Mortgage Securities Trust 2013-GC13						3.00%, 06/15/2031^(a)		15,630		1,592
4.07%, 07/10/2046^(a),(b)			5,000		4,452
						3.00%, 06/15/2040		8,394		8,683
GS Mortgage Securities Trust 2015-GC34						3.00%, 10/15/2042		2,801		2,879
4.81%, 10/10/2048			4,169		4,005	3.00%, 03/15/2043		7,914		8,139
JP Morgan Chase Commercial Mortgage						3.00%, 05/15/2044^(a)		4,653		4,833
Securities Trust 2013-C10						3.50%, 01/15/2028^(a)		13,107		1,494
3.37%, 12/15/2047^(a)			7,800		7,915
						3.50%, 04/15/2040		16,656		1,448
JP Morgan Chase Commercial Mortgage						4.00%, 06/15/2028^(a)		3,880		120
Securities Trust 2013-C16						4.00%, 05/15/2039		4,825		5,062
4.94%, 12/15/2046^(a)			8,000		8,711
						4.00%, 11/15/2042^(a)		18,374		3,256
JPMBB Commercial Mortgage Securities						4.50%, 05/15/2037^(a)		4,849		5,066
Trust 2014-C25						6.50%, 08/15/2027		112		121
4.45%, 11/15/2047^(a)			5,000		4,902
						Freddie Mac Strips
Wells Fargo Commercial Mortgage Trust						1.90%, 10/15/2037^(a)		74,719		5,555
2015	-C31					1.96%, 02/15/2038^(a)		63,500		4,496
4.61%, 11/15/2048^(a),(c),(d)			6,000		5,733
						3.00%, 10/15/2027^(a)		23,024		2,544


Schedule of Investments
Government & High Quality Bond Fund
October 31, 2015



			Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
BONDS (continued)			Amount (000's) Value (000's)			AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)
						Federal Home Loan Mortgage Corporation (FHLMC)
Mortgage Backed Securities (continued)						(continued)

Ginnie Mae
1.20%, 03/20/2041^(a)		$	52,913	$	2,525	5.00%, 02/01/2033	$	966	$	1,072
						5.00%, 01/01/2034		874		975
3.00%, 05/16/2037			14,000		14,316
3.25%, 05/20/2045^(a)			4,830		5,016	5.00%, 05/01/2034		197		215
3.50%, 04/20/2038^(a)			13,024		1,522	5.00%, 05/01/2035		211		231
3.50%, 10/20/2041^(a)			21,421		2,606	5.00%, 07/01/2035		5		5
						5.00%, 07/01/2035		92		101
3.50%, 01/20/2043			25,723		5,831
3.50%, 05/20/2043^(a)			16,993		2,419	5.00%, 10/01/2035		17		19
						5.00%, 11/01/2035		743		822
3.50%, 04/16/2044			4,913		4,839
						5.00%, 07/01/2044		5,750		6,381
4.00%, 02/20/2034			6,647		7,132
						5.50%, 04/01/2018		36		37
4.00%, 11/16/2038			1,090		1,144
4.00%, 02/20/2044^(a)			10,568		1,621	5.50%, 03/01/2029		1		2
4.50%, 04/20/2045^(a)			11,346		3,018	5.50%, 05/01/2033		16		18
						5.50%, 10/01/2033		21		23
5.00%, 11/20/2039			7,347		8,073
						5.50%, 12/01/2033		590		658

LF Rothschild Mortgage Trust III						5.50%, 07/01/2037		41		46
9.95%, 09/01/2017			1		1
						5.50%, 04/01/2038		24		26
Morgan Stanley Re-REMIC Trust 2010-R1
2.57%, 07/26/2035^(a),(b)			9,700		9,234	5.50%, 05/01/2038		102		114
						6.00%, 04/01/2017		59		61

						6.00%, 04/01/2017		60		61
New Residential Mortgage Loan Trust 2014-3
4.75%, 11/25/2054^(a),(b)			8,412		8,930	6.00%, 05/01/2017		63		65
						6.00%, 07/01/2017		3		3
Sequoia Mortgage Trust 2013-2
3.66%, 02/25/2043^(a)			6,798		6,875	6.00%, 01/01/2021		57		60
						6.00%, 06/01/2028		12		14
Springleaf Mortgage Loan Trust 2013-3
3.79%, 09/25/2057^(a),(b)			4,800		4,869	6.00%, 05/01/2031		135		155
						6.00%, 10/01/2031		5		6
			$		247,705	6.00%, 02/01/2032		21		24
Other Asset Backed Securities - 0.22%						6.00%, 09/01/2032		224		253
TAL Advantage V LLC						6.00%, 11/01/2033		517		584
3.33%, 05/20/2039^(a),(b)			3,454		3,426	6.00%, 11/01/2033		424		479
						6.00%, 05/01/2034		1,752		2,003
TOTAL BONDS			$		480,985	6.00%, 05/01/2034		1,349		1,515
U.S. GOVERNMENT & GOVERNMENT			Principal			6.00%, 09/01/2034		133		153
AGENCY OBLIGATIONS - 67.25%			Amount (000's) Value (000's)			6.00%, 02/01/2035		139		160
						6.00%, 10/01/2036^(a)		94		107
Federal Home Loan Mortgage Corporation (FHLMC) -
15.98	%					6.00%, 03/01/2037		149		170
2.04%, 03/01/2036^(a)		$	253	$	262	6.00%, 05/01/2037		241		275
2.48%, 10/01/2032^(a)			2		2	6.00%, 01/01/2038^(a)		69		78
2.50%, 08/01/2027			2,376		2,441	6.00%, 03/01/2038		65		74
2.50%, 09/01/2027			7,569		7,777	6.00%, 04/01/2038		184		212
2.50%, 02/01/2028			7,404		7,608	6.00%, 07/01/2038		347		395
3.00%, 01/01/2027			6,676		6,954	6.00%, 10/01/2038		233		266
3.00%, 02/01/2027			6,851		7,131	6.00%, 09/01/2039		6,627		7,719
3.00%, 04/01/2035			3,718		3,834	6.50%, 11/01/2016		18		18
3.00%, 10/01/2042			10,524		10,645	6.50%, 06/01/2017		11		12
3.00%, 10/01/2042			8,445		8,542	6.50%, 12/01/2021		295		337
3.00%, 05/01/2043			7,603		7,688	6.50%, 04/01/2022		252		288
3.50%, 11/01/2026			4,352		4,610	6.50%, 05/01/2022		104		118
3.50%, 02/01/2032			7,237		7,610	6.50%, 08/01/2022		61		70
3.50%, 04/01/2032			6,339		6,667	6.50%, 05/01/2023		92		97
3.50%, 12/01/2041			3,843		4,031	6.50%, 07/01/2023		2		3
3.50%, 02/01/2042			2,788		2,906	6.50%, 01/01/2024		6		7
3.50%, 04/01/2042			1,096		1,143	6.50%, 07/01/2025		2		3
3.50%, 04/01/2042			11,358		11,841	6.50%, 07/01/2025		2		2
3.50%, 07/01/2042			12,478		13,012	6.50%, 09/01/2025		1		2
3.50%, 09/01/2042			8,944		9,324	6.50%, 10/01/2025		3		3
3.50%, 08/01/2043			8,676		9,072	6.50%, 10/01/2025		2		2
3.50%, 02/01/2044			9,628		10,051	6.50%, 03/01/2029		6		7
4.00%, 12/01/2040			7,687		8,253	6.50%, 03/01/2029		70		81
4.00%, 10/01/2041			5,077		5,427	6.50%, 04/01/2031		267		305
4.00%, 12/01/2041			6,928		7,494	6.50%, 10/01/2031		105		121
4.00%, 07/01/2042			4,650		5,048	6.50%, 02/01/2032		15		18
4.00%, 07/01/2043			6,038		6,529	6.50%, 04/01/2032		13		15
4.00%, 09/01/2044			7,478		8,083	6.50%, 04/01/2035		8		10
4.50%, 08/01/2033			641		696	6.50%, 02/01/2037		31		36
4.50%, 07/01/2039			2,355		2,572	7.00%, 07/01/2024		3		4
4.50%, 12/01/2040			6,048		6,558	7.00%, 01/01/2028		458		515
4.50%, 04/01/2041			7,504		8,310	7.00%, 06/01/2029		171		200
4.50%, 11/01/2043			7,303		8,129	7.00%, 01/01/2031		1		1
4.50%, 01/01/2044			7,599		8,398	7.00%, 04/01/2031		107		121
5.00%, 10/01/2025			111		122	7.00%, 10/01/2031		127		145
5.00%, 12/01/2032			90		100

Schedule of Investments Government & High Quality Bond Fund October 31, 2015


U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)				AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC)
					Federal National Mortgage Association (FNMA) (continued)
(continued)
					4.00%, 08/01/2044	$	5,881	$	6,375
7.00%, 04/01/2032	$	267	$	321
					4.00%, 11/01/2044		4,443		4,816
7.50%, 12/01/2030		4		4
					4.00%, 07/01/2045		8,916		9,561
7.50%, 02/01/2031		33		38
					4.50%, 12/01/2019		53		55
7.50%, 02/01/2031		2		3
					4.50%, 01/01/2020		205		215
8.00%, 08/01/2030		1		1
					4.50%, 09/01/2025		3,464		3,729
8.00%, 12/01/2030		10		10
					4.50%, 07/01/2039		2,434		2,676
8.50%, 04/01/2019		1		1
					4.50%, 09/01/2039		3,037		3,338
8.50%, 07/01/2029		141		156
					4.50%, 03/01/2041		5,487		6,003
		$		247,582	4.50%, 03/01/2042		13,456		14,927
Federal National Mortgage Association (FNMA) - 38.10%					4.50%, 09/01/2043		5,799		6,443
2.00%, 10/01/2027		5,009		5,020	4.50%, 09/01/2043		6,673		7,415
2.00%, 10/01/2027		3,731		3,740	4.50%, 09/01/2043		10,619		11,800
2.00%, 02/01/2028		6,596		6,610	4.50%, 11/01/2043		9,537		10,597
2.00%, 08/01/2028		3,966		3,975	4.50%, 05/01/2044		10,394		11,324
2.00%, 07/01/2030		8,289		8,255	4.50%, 09/01/2044		8,185		9,095
2.25%, 12/01/2033^(a)		135		143	4.50%, 10/01/2044		5,626		6,252
2.50%, 06/01/2027		8,517		8,738	5.00%, 01/01/2018		28		29
2.50%, 05/01/2028		4,400		4,520	5.00%, 11/01/2018		158		164
2.50%, 05/01/2028		3,783		3,886	5.00%, 04/01/2019		48		50
2.50%, 07/01/2028		13,533		13,718	5.00%, 01/01/2026		130		143
2.50%, 03/01/2030		10,290		10,495	5.00%, 04/01/2035		276		310
2.59%, 03/01/2028^(a)		15		15	5.00%, 05/01/2035		151		167
2.63%, 11/01/2033^(a)		11		11	5.00%, 07/01/2035		50		55
3.00%, 04/01/2027		6,299		6,575	5.00%, 02/01/2038		2,926		3,294
3.00%, 05/01/2029		9,896		10,341	5.00%, 03/01/2038		2,262		2,548
3.00%, 06/01/2042		7,739		7,853	5.00%, 02/01/2040		11,528		13,037
3.00%, 10/01/2042		8,054		8,169	5.00%, 04/01/2040		1,286		1,439
3.00%, 11/01/2042		11,118		11,275	5.00%, 05/01/2040		4,348		4,909
3.00%, 12/01/2042		8,259		8,374	5.00%, 06/01/2040		2,029		2,249
3.00%, 01/01/2043		8,147		8,259	5.00%, 07/01/2040		3,236		3,636
3.00%, 02/01/2043		7,513		7,615	5.00%, 07/01/2041		13,059		14,769
3.00%, 02/01/2043		8,532		8,660	5.00%, 07/01/2041		5,634		6,276
3.00%, 04/01/2043		10,121		10,243	5.00%, 02/01/2044		5,243		5,930
3.00%, 04/01/2045		11,666		11,808	5.50%, 09/01/2017		27		28
3.00%, 07/01/2045		3,945		3,992	5.50%, 09/01/2017		3		3
3.50%, 02/01/2042		8,825		9,276	5.50%, 12/01/2017		169		174
3.50%, 03/01/2042		4,697		4,900	5.50%, 03/01/2018		34		35
3.50%, 06/01/2042		4,844		5,056	5.50%, 06/01/2019		11		12
3.50%, 07/01/2042		7,410		7,766	5.50%, 06/01/2019		8		8
3.50%, 07/01/2042		5,671		5,919	5.50%, 07/01/2019		3		3
3.50%, 09/01/2042		12,683		13,293	5.50%, 07/01/2019		11		12
3.50%, 11/01/2042		7,803		8,188	5.50%, 07/01/2019		24		25
3.50%, 02/01/2043		3,069		3,229	5.50%, 07/01/2019		40		42
3.50%, 05/01/2043		7,249		7,608	5.50%, 08/01/2019		52		54
3.50%, 10/01/2044		9,342		9,821	5.50%, 08/01/2019		9		10
3.50%, 11/01/2044		8,456		8,890	5.50%, 09/01/2019		59		62
3.50%, 03/01/2045		7,666		8,040	5.50%, 06/01/2026		114		128
3.50%, 03/01/2045		4,819		5,042	5.50%, 05/01/2033		187		209
3.50%, 06/01/2045		9,788		10,296	5.50%, 07/01/2033		1,015		1,153
3.50%, 09/01/2045		7,406		7,763	5.50%, 09/01/2033		598		679
4.00%, 01/01/2034		2,303		2,477	5.50%, 02/01/2035		2,435		2,754
4.00%, 08/01/2039		5,938		6,325	5.50%, 02/01/2037		15		17
4.00%, 09/01/2040		4,515		4,857	5.50%, 12/01/2037		1,489		1,693
4.00%, 01/01/2041		6,937		7,406	5.50%, 03/01/2038		587		662
4.00%, 04/01/2041		5,309		5,665	5.50%, 03/01/2038		391		445
4.00%, 04/01/2041		4,374		4,664	6.00%, 12/01/2016		61		62
4.00%, 11/01/2041		6,534		6,973	6.00%, 01/01/2017		1		1
4.00%, 02/01/2042		3,552		3,840	6.00%, 04/01/2017		12		12
4.00%, 04/01/2042		7,803		8,331	6.00%, 08/01/2017		210		216
4.00%, 03/01/2043		6,747		7,271	6.00%, 08/01/2018		162		169
4.00%, 08/01/2043		6,638		7,192	6.00%, 12/01/2022		21		24
4.00%, 08/01/2043		11,287		12,229	6.00%, 03/01/2029		75		86
4.00%, 10/01/2043		8,403		9,085	6.00%, 08/01/2031		470		537
4.00%, 04/01/2044		4,356		4,722	6.00%, 12/01/2031		4		4
4.00%, 08/01/2044		14,775		16,014	6.00%, 12/01/2031		2		3
					6.00%, 01/01/2032		355		400
					6.00%, 11/01/2032		10		12
					6.00%, 04/01/2033		285		317
					6.00%, 02/01/2034		336		381
					6.00%, 03/01/2034		622		709
					6.00%, 09/01/2034		1,122		1,257

Schedule of Investments Government & High Quality Bond Fund October 31, 2015



U.S. GOVERNMENT & GOVERNMENT			Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)


Federal National Mortgage Association (FNMA) (continued)						Government National Mortgage Association (GNMA)
						(continued)
6.00%, 11/01/2037		$	178	$	201
						4.50%, 10/15/2039	$	4,766	$	5,230
6.00%, 02/01/2038			208		237
						4.50%, 09/20/2041		5,490		5,990
6.00%, 03/01/2038			119		136
						5.00%, 02/15/2034		227		253
6.00%, 08/01/2038			1,064		1,215
						5.00%, 10/15/2039		4,540		5,094
6.00%, 04/01/2039			1,133		1,306
						5.50%, 07/20/2033		1,829		2,063
6.50%, 06/01/2016			1		1
						5.50%, 03/20/2034		1,866		2,106
6.50%, 09/01/2024			301		344
						5.50%, 05/20/2035		204		230
6.50%, 08/01/2028			70		80
						5.50%, 01/15/2039		468		523
6.50%, 11/01/2028			49		57
						5.50%, 01/15/2039		300		341
6.50%, 12/01/2028			43		49
						6.00%, 10/15/2023		106		119
6.50%, 02/01/2029			30		35
						6.00%, 11/15/2023		47		53
6.50%, 03/01/2029			53		61
						6.00%, 11/15/2023		20		22
6.50%, 04/01/2029			27		31
						6.00%, 12/15/2023		25		29
6.50%, 06/01/2031			141		164
						6.00%, 12/15/2023		2		2
6.50%, 06/01/2031			73		83
						6.00%, 12/15/2023		20		23
6.50%, 06/01/2031			79		90
						6.00%, 01/15/2024		14		16
6.50%, 09/01/2031			6		7
						6.00%, 01/20/2024		6		7
6.50%, 12/01/2031			6		6
						6.00%, 02/15/2024		28		32
6.50%, 01/01/2032			35		39
						6.00%, 02/15/2024		26		30
6.50%, 04/01/2032			23		26
						6.00%, 02/15/2024		17		19
6.50%, 04/01/2032			373		427
						6.00%, 03/15/2024		16		18
6.50%, 08/01/2032			169		197
						6.00%, 04/20/2024		29		33
6.50%, 11/01/2032			424		481
						6.00%, 05/20/2024		19		21
6.50%, 11/01/2032			223		249
						6.00%, 05/20/2024		22		25
6.50%, 02/01/2033			365		417
						6.00%, 10/20/2024		12		13
6.50%, 07/01/2034			673		781
						6.00%, 09/20/2025		23		26
6.50%, 04/01/2036			11		12
						6.00%, 04/20/2026		75		85
6.50%, 08/01/2036			93		111
						6.00%, 10/20/2028		11		12
6.50%, 08/01/2036			156		181
						6.00%, 02/20/2029		115		133

6.50%, 10/01/2036			69		82	6.00%, 05/20/2032^(a)		330		371
6.50%, 11/01/2036			61		70
						6.00%, 08/15/2032		39		44
6.50%, 07/01/2037			48		55
						6.00%, 09/15/2032		75		84
6.50%, 07/01/2037			37		44
						6.00%, 02/15/2033		28		33
6.50%, 08/01/2037			77		89
						6.00%, 07/20/2033		1,386		1,576
6.50%, 08/01/2037			913		1,100
						6.00%, 08/15/2038		324		378
6.50%, 01/01/2038			12		14
						6.50%, 09/15/2023		8		9
6.50%, 02/01/2038			39		47
						6.50%, 09/15/2023		15		17
6.50%, 05/01/2038			13		14
						6.50%, 09/15/2023		24		28
7.00%, 05/01/2022			17		19
						6.50%, 09/15/2023		13		15
7.00%, 08/01/2028			89		104
						6.50%, 10/15/2023		22		25
7.00%, 12/01/2028			94		109
						6.50%, 11/15/2023		5		5
7.00%, 07/01/2029			93		110
						6.50%, 12/15/2023		7		8
7.00%, 11/01/2031			375		426
						6.50%, 12/15/2023		28		32
7.00%, 07/01/2032			184		209
						6.50%, 12/15/2023		15		17
7.50%, 12/01/2024			128		141
						6.50%, 12/15/2023		32		37
7.50%, 07/01/2029			27		28
						6.50%, 01/15/2024		19		22
7.50%, 02/01/2030			87		98
						6.50%, 01/15/2024		8		9
7.50%, 01/01/2031			2		2
						6.50%, 01/15/2024		41		47
7.50%, 08/01/2032			16		19
						6.50%, 01/15/2024		13		15
8.00%, 05/01/2022			1		1
						6.50%, 01/15/2024		7		8
8.50%, 09/01/2025			1		2
						6.50%, 01/15/2024		13		15
9.00%, 09/01/2030			34		40
						6.50%, 03/15/2024		26		30

			$		590,299	6.50%, 04/15/2024		17		20

						6.50%, 04/20/2024		12		14
Government National Mortgage Association (GNMA) -
8.30	%					6.50%, 07/15/2024		47		54

3.00%, 11/15/2042			9,684		9,948	6.50%, 01/15/2026		10		12

3.00%, 11/15/2042			7,306		7,483	6.50%, 03/15/2026		15		18

3.00%, 12/15/2042			7,629		7,813	6.50%, 07/20/2026		4		4

3.00%, 02/15/2043			7,995		8,213	6.50%, 10/20/2028		12		14

3.50%, 12/20/2041			6,113		6,423	6.50%, 03/20/2031		93		108

3.50%, 07/15/2042			7,803		8,175	6.50%, 04/20/2031		75		88

3.50%, 08/20/2042			7,421		7,819	6.50%, 07/15/2031		2		2

3.50%, 06/20/2043			8,017		8,464	6.50%, 10/15/2031		15		17

3.50%, 08/15/2043			10,341		10,879	6.50%, 07/15/2032		6		7

4.00%, 08/15/2041			6,427		6,970	6.50%, 05/20/2034		644		780

4.00%, 02/20/2043			3,629		3,884	6.80%, 04/20/2025		43		44

4.00%, 03/15/2044			6,595		7,178	7.00%, 11/15/2022		6		6

4.00%, 10/20/2044			6,569		7,063	7.00%, 11/15/2022		11		11

						7.00%, 12/15/2022		40		43

						7.00%, 12/15/2022		7		7

						7.00%, 01/15/2023		10		10

						7.00%, 01/15/2023		17		18

Schedule of Investments Government & High Quality Bond Fund October 31, 2015


U.S. GOVERNMENT & GOVERNMENT	Principal				U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's) Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)
Government National Mortgage Association (GNMA)					Government National Mortgage Association (GNMA)
(continued)					(continued)
7.00%, 01/15/2023	$	8	$	8		9.50%, 11/15/2017	$	3	$	3
7.00%, 02/15/2023		22		22		9.50%, 09/20/2018		17		17
7.00%, 07/15/2023		9		9		9.50%, 09/15/2020		7		7
7.00%, 07/15/2023		9		9		9.50%, 12/20/2020		16		16
7.00%, 07/15/2023		18		19		9.50%, 01/20/2021		1		1
7.00%, 08/15/2023		18		19		9.50%, 02/20/2021		1		1
7.00%, 10/15/2023		15		16		9.50%, 08/15/2021		53		60
7.00%, 12/15/2023		18		20				$		128,668
7.00%, 12/15/2023		19		20
7.00%, 01/15/2026		12		12	U.S. Treasury - 4.46%
7.00%, 01/15/2027		24		26		2.25%, 11/30/2017		5,900		6,076
7.00%, 10/15/2027		2		2		3.00%, 11/15/2044		14,800		14,968
7.00%, 10/15/2027		9		9		3.13%, 05/15/2021		18,000		19,374
7.00%, 10/15/2027		2		2		4.25%, 11/15/2040		9,510		11,908
7.00%, 11/15/2027		25		25		5.25%, 11/15/2028		5,300		7,012
7.00%, 12/15/2027		2		2		6.25%, 08/15/2023		7,500		9,831
7.00%, 12/15/2027		6		6				$		69,169
7.00%, 02/15/2028		1		1	U.S. Treasury Strip - 0.41%
7.00%, 04/15/2028		3		3		0.00%, 05/15/2020^(e),(f)		6,800		6,340
7.00%, 06/15/2028		149		167
7.00%, 12/15/2028		76		85	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
7.00%, 01/15/2029		54		61	OBLIGATIONS			$		1,042,058
7.00%, 03/15/2029		36		37	Total Investments			$		1,572,410
7.00%, 04/15/2029		184		206	Liabilities in Excess of Other Assets, Net - (1.48)%			$		(22,927	)
7.00%, 04/15/2029		18		19	TOTAL NET ASSETS - 100.00%			$		1,549,483
7.00%, 05/15/2031		10		12
7.00%, 06/20/2031		71		87
7.00%, 07/15/2031		2		2	(a)	Variable Rate. Rate shown is in effect at October 31, 2015.
7.00%, 09/15/2031		2		3	(b)	Security exempt from registration under Rule 144A of the Securities Act of
7.25%, 09/15/2025		21		21		1933. These securities may be resold in transactions exempt from
7.50%, 04/15/2017		4		4		registration, normally to qualified institutional buyers. At the end of the
7.50%, 04/15/2017		1		1		period, the value of these securities totaled $75,363 or 4.86% of net assets.
7.50%, 04/15/2017		3		3	(c)	Security purchased on a when-issued basis.
7.50%, 07/15/2018		5		5	(d)	Fair value of these investments is determined in good faith by the Manager
7.50%, 12/15/2021		21		21		under procedures established and periodically reviewed by the Board of
7.50%, 02/15/2022		7		7		Directors. At the end of the period, the fair value of these securities totaled
7.50%, 03/15/2022		9		9		$5,733 or 0.37% of net assets.
7.50%, 03/15/2022		2		2	(e)	Non-Income Producing Security
7.50%, 04/15/2022		3		3	(f)	Security is a Principal Only Strip.
7.50%, 04/15/2022		24		24
7.50%, 04/15/2022		6		6
7.50%, 07/15/2022		22		22
7.50%, 08/15/2022		15		15		Portfolio Summary (unaudited)
7.50%, 08/15/2022		15		15	Sector					Percent
7.50%, 08/15/2022		2		2	Mortgage Securities					92.37	%
7.50%, 08/15/2022		4		5	Government					4.87	%
7.50%, 02/15/2023		9		10	Exchange Traded Funds					3.19	%
7.50%, 05/15/2023		13		13	Asset Backed Securities					1.05	%
7.50%, 05/15/2023		3		3	Liabilities in Excess of Other Assets, Net					(1.48	)%
7.50%, 06/15/2023		14		16	TOTAL NET ASSETS					100.00	%
7.50%, 10/15/2023		1		1
7.50%, 11/15/2023		12		12
7.50%, 03/15/2024		21		23
7.50%, 08/15/2024		1		1
7.50%, 05/15/2027		17		17
7.50%, 05/15/2027		6		6
7.50%, 06/15/2027		10		11
7.50%, 08/15/2029		65		74
7.50%, 09/15/2029		20		20
7.50%, 10/15/2029		65		74
7.50%, 11/15/2029		80		85
7.50%, 11/15/2029		49		51
8.00%, 06/15/2017		2		2
8.00%, 02/15/2022		20		22
8.00%, 04/15/2022		15		16
8.00%, 12/15/2030		7		9
9.00%, 11/15/2021		51		57
9.50%, 10/15/2017		3		4


Schedule of Investments
High Yield Fund
October 31, 2015



	COMMON STOCKS - 0.01%			Shares Held	Value(000			's)				Principal
									BONDS (continued)			Amount (000's) Value (000's)
	Biotechnology - 0.00%
	Neuro-Hitech Inc ^(a),(b)			250,000		$	—		Automobile Parts & Equipment (continued)
									ZF North America Capital Inc
									4.00%, 04/29/2020^(e)		$	10,200	$	10,302
	Commercial Services - 0.01%								4.50%, 04/29/2022^(e)			2,030		2,044
	(a),(b)
	Network Holding Co KSCC			393,257			488		4.75%, 04/29/2025^(e)			7,040		6,908
												$		52,105
	Computers - 0.00%
	SONICblue Inc ^(a),(b)			10,000,000			—		Banks- 4.47	%
									Barclays PLC
									8.25%, 12/29/2049^(d),(g)			34,160		36,370
	Energy - Alternate Sources - 0.00%								CIT Group Inc
	Ogden Corp ^(a),(b),(c)			5,000,000			—		3.88%, 02/19/2019			27,935		28,354
									ING Bank NV
	TOTAL COMMON STOCKS				$		488		5.80%, 09/25/2023^(e)			18,700		20,558
	INVESTMENT COMPANIES - 6.57%			Shares Held	Value(000			's)	JPMorgan Chase & Co
									5.00%, 12/29/2049^(d),(g)			27,925		27,534
	Publicly Traded Investment Fund - 6.57%								Popular Inc
	Goldman Sachs Financial Square Funds -			238,693,431			238,693		7.00%, 07/01/2019			8,920		8,697
	Government Fund								Royal Bank of Scotland Group PLC
									7.50%, 12/29/2049^(d),(g)			7,800		8,073
	TOTAL INVESTMENT COMPANIES				$		238,693		Wells Fargo & Co
	PREFERRED STOCKS - 0.34%			Shares Held	Value(000			's)	5.87%, 12/29/2049^(d),(g)			13,765		14,559
									5.90%, 12/29/2049^(d),(g)			18,000		18,450
	Diversified Financial Services - 0.34%
	Ally Financial Inc ^(d),(e)			12,284			12,520					$		162,595
									Beverages - 0.66%
	TOTAL PREFERRED STOCKS				$		12,520		Constellation Brands Inc
				Principal					3.75%, 05/01/2021			7,770		7,945
	BONDS- 82.40	%		Amount (000's)	Value(000			's)	4.25%, 05/01/2023			15,780		16,155
	Advertising - 0.24%											$		24,100
	MDC Partners Inc								Building Materials - 1.26%
	6.75%, 04/01/2020^(e)		$	8,485		$	8,633		Boise Cascade Co
									6.38%, 11/01/2020			7,920		8,197
									Cemex SAB de CV
	Aerospace & Defense - 0.15%								6.13%, 05/05/2025^(e)			3,675		3,482
	Air 2 US
	8.63%, 10/01/2020^(e)			5,197			5,304		7.25%, 01/15/2021^(e)			17,335		17,769
									Norbord Inc
									5.38%, 12/01/2020^(e)			10,175		10,340
	Agriculture - 0.59%								Vulcan Materials Co
	Pinnacle Operating Corp								4.50%, 04/01/2025			5,925		6,058
	9.00%, 11/15/2020^(e)			22,113			21,450
												$		45,846

									Chemicals - 2.76%
	Airlines - 0.24%								A Schulman Inc
	American Airlines 2015-1 Class B Pass								6.88%, 06/01/2023^(e)			7,105		7,052
	Through Trust								Aruba Investments Inc
	3.70%, 11/01/2024			2,800			2,751		8.75%, 02/15/2023^(e)			10,280		10,152
	United Airlines 2014-1 Class B Pass Through								Axiall Corp
	Trust								4.88%, 05/15/2023			9,347		8,885
	4.75%, 10/11/2023			3,332			3,347		Blue Cube Spinco Inc
	US Airways 2001-1G Pass Through Trust								9.75%, 10/15/2023^(e)			3,315		3,572
	7.08%, 09/20/2022			2,392			2,583		Consolidated Energy Finance SA
					$		8,681		6.75%, 10/15/2019^(e)			11,995		11,935
									Cornerstone Chemical Co
	Automobile Manufacturers - 1.74%								9.38%, 03/15/2018^(e)			9,815		9,913
	Fiat Chrysler Automobiles NV
	4.50%, 04/15/2020			7,500			7,575		Eagle Spinco Inc
	Jaguar Land Rover Automotive PLC								4.63%, 02/15/2021			14,815		14,426
	3.50%, 03/15/2020^(e)			7,400			7,317		NOVA Chemicals Corp
	4.13%, 12/15/2018^(e)			11,130			11,408		5.00%, 05/01/2025^(e)			8,760		8,760
	4.25%, 11/15/2019^(e)			12,880			13,105		5.25%, 08/01/2023^(e)			24,915		25,493
	5.63%, 02/01/2023^(e)			6,780			6,984					$		100,188
	Navistar International Corp								Commercial Services - 0.53%
	8.25%, 11/01/2021			21,650			16,887		Ahern Rentals Inc
					$		63,276		7.38%, 05/15/2023^(e)			7,070		6,575
	Automobile Parts & Equipment - 1.43%								Jurassic Holdings III Inc
									6.88%, 02/15/2021^(e)			8,060		5,803
	Dana Holding Corp
	5.38%, 09/15/2021			4,750			4,845		TMS International Corp
									7.63%, 10/15/2021^(e)			7,500		6,863
	5.50%, 12/15/2024			5,970			5,955
	6.00%, 09/15/2023			8,135			8,420					$		19,241
	Lear Corp								Computers - 0.44%
	5.25%, 01/15/2025			9,840			10,037		Compiler Finance Sub Inc
	Schaeffler Holding Finance BV								7.00%, 05/01/2021^(e)			12,770		6,768
	6.75%, PIK 6.75%, 11/15/2022^(e),(f)			3,290			3,594


		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Computers (continued)					Engineering & Construction - 0.23%
IHS Inc					Aguila 3 SA
5.00%, 11/01/2022	$	3,065	$	3,096	7.88%, 01/31/2018^(e)		$	8,070	$	8,252
NCR Corp
4.63%, 02/15/2021		6,286		6,207
					Entertainment - 3.32%
		$		16,071	Carmike Cinemas Inc
Consumer Products - 0.20%					6.00%, 06/15/2023^(e)			7,040		7,295
Spectrum Brands Inc					CCM Merger Inc
5.75%, 07/15/2025^(e)		6,755		7,202	9.13%, 05/01/2019^(e)			22,291		23,628
					Cinemark USA Inc
					4.88%, 06/01/2023			20,905		20,617
Distribution & Wholesale - 0.78%					DreamWorks Animation SKG Inc
Global Partners LP / GLP Finance Corp					6.88%, 08/15/2020^(e)			15,055		14,980
7.00%, 06/15/2023		10,170		9,560	Eldorado Resorts Inc
HD Supply Inc					7.00%, 08/01/2023^(e)			10,345		10,474
5.25%, 12/15/2021^(e)		2,525		2,651
					Peninsula Gaming LLC / Peninsula Gaming
7.50%, 07/15/2020		15,120		16,103	Corp
		$		28,314	8.38%, 02/15/2018^(e)			16,680		17,347
Diversified Financial Services - 5.05%					Regal Entertainment Group
					5.75%, 03/15/2022			8,090		8,353
AerCap Ireland Capital Ltd / AerCap Global					WMG Acquisition Corp
Aviation Trust					6.75%, 04/15/2022^(e)			9,685		8,965
4.63%, 10/30/2020		5,865		6,077
4.63%, 07/01/2022		16,135		16,478	WMG Holdings Corp
Aircastle Ltd					13.75%, 10/01/2019			8,435		8,952
4.63%, 12/15/2018		3,915		4,062				$		120,611
5.13%, 03/15/2021		17,575		18,542	Food- 1.49	%
5.50%, 02/15/2022		5,165		5,462	BI-LO LLC / BI-LO Finance Corp
7.63%, 04/15/2020		8,050		9,288	9.25%, 02/15/2019^(e)			10,155		10,434
Credit Acceptance Corp					Ingles Markets Inc
6.13%, 02/15/2021		27,150		27,150	5.75%, 06/15/2023			10,265		10,471
7.38%, 03/15/2023^(e)		12,325		12,756
					JBS USA LLC / JBS USA Finance Inc
Denali Borrower LLC / Denali Finance Corp					5.75%, 06/15/2025^(e)			9,165		8,867
5.63%, 10/15/2020^(e)		7,410		7,882
					Post Holdings Inc
Fly Leasing Ltd					7.75%, 03/15/2024^(e)			4,585		4,883
6.38%, 10/15/2021		20,730		21,352	Smithfield Foods Inc
Icahn Enterprises LP / Icahn Enterprises					5.25%, 08/01/2018^(e)			4,339		4,404
Finance Corp					5.88%, 08/01/2021^(e)			14,255		14,968
5.88%, 02/01/2022		6,100		6,283				$		54,027
6.00%, 08/01/2020		7,060		7,369
Navient Corp					Forest Products & Paper - 0.70%
6.13%, 03/25/2024		9,965		8,993	Resolute Forest Products Inc
OneMain Financial Holdings Inc					5.88%, 05/15/2023			7,035		5,241
7.25%, 12/15/2021^(e)		17,355		18,136	Sappi Papier Holding GmbH
Springleaf Finance Corp					7.50%, 06/15/2032^(e)			5,985		5,566
5.25%, 12/15/2019		13,650		13,582	7.75%, 07/15/2017^(e)			5,000		5,200
		$		183,412	Tembec Industries Inc
					9.00%, 12/15/2019^(e)			9,430		7,544
Electric - 1.75%					Verso Paper Holdings LLC / Verso Paper Inc
Dynegy Inc					11.75%, 01/15/2019			7,920		1,782
6.75%, 11/01/2019		3,500		3,491				$		25,333
7.38%, 11/01/2022		12,610		12,642
Elwood Energy LLC					Hand & Machine Tools - 0.14%
8.16%, 07/05/2026		7,292		8,058	Paternoster Holding III GmbH
Indiantown Cogeneration LP					8.50%, 02/15/2023^(e)		EUR	4,900		5,114
9.77%, 12/15/2020		2,922		3,316


Miran Mid-Atlantic Series C Pass Through					Healthcare - Products - 2.26%
Trust					ConvaTec Finance International SA
10.06%, 12/30/2028		18,968		19,015	8.25%, PIK 9.00%, 01/15/2019^(e),(f)		$	24,165		24,105

Mirant Mid-Atlantic Series B Pass Through					ConvaTec Healthcare E SA
Trust					10.50%, 12/15/2018 ^(e)			300		310
9.13%, 06/30/2017		339		342

					DJO Finco Inc / DJO Finance LLC / DJO
NRG Energy Inc					Finance Corp
6.25%, 05/01/2024		6,760		6,050	8.13%, 06/15/2021^(e)			16,265		16,143
8.25%, 09/01/2020		10,375		10,635
					Hill-Rom Holdings Inc
		$		63,549	5.75%, 09/01/2023^(e),(g)			6,440		6,569
Electronics - 0.05%					Kinetic Concepts Inc / KCI USA Inc
Sanmina Corp					10.50%, 11/01/2018			3,560		3,759
4.38%, 06/01/2019^(e)		1,940		1,979	Mallinckrodt International Finance SA /
					Mallinckrodt CB LLC
					5.63%, 10/15/2023^(e)			17,690		16,695


	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)

Healthcare - Products (continued)					Leisure Products & Services - 0.29%
Universal Hospital Services Inc					NCL Corp Ltd
7.63%, 08/15/2020	$	15,410	$	14,697	5.25%, 11/15/2019^(e)		$	10,175	$	10,557
		$		82,278

Healthcare - Services - 3.51%					Lodging - 0.83%
Centene Corp					Boyd Gaming Corp
4.75%, 05/15/2022		14,700		14,627	6.88%, 05/15/2023			5,360		5,682
Fresenius Medical Care US Finance II Inc					MGM Resorts International
4.75%, 10/15/2024^(e)		5,770		5,842	6.00%, 03/15/2023			12,225		12,408
5.88%, 01/31/2022^(e)		7,825		8,529	6.63%, 12/15/2021			6,290		6,715
6.50%, 09/15/2018^(e)		4,895		5,372	7.75%, 03/15/2022			1,600		1,776
HCA Holdings Inc					10.00%, 11/01/2016			3,205		3,439
6.25%, 02/15/2021		2,480		2,709				$		30,020

HCA Inc					Machinery - Construction & Mining - 0.22%
4.75%, 05/01/2023		21,400		21,935
					Vander Intermediate Holding II Corp
5.00%, 03/15/2024		17,315		17,835	9.75%, PIK 10.50%, 02/01/2019 ^(e),(f)			9,350		8,088
5.25%, 04/15/2025		3,915		4,052
5.38%, 02/01/2025		2,220		2,278
5.88%, 03/15/2022		12,015		13,217	Media- 8.76	%
MPH Acquisition Holdings LLC					Altice Financing SA
6.63%, 04/01/2022^(e)		16,770		17,105	6.50%, 01/15/2022^(e)			5,830		5,903
WellCare Health Plans Inc					6.63%, 02/15/2023^(e)			3,000		3,008
5.75%, 11/15/2020		13,555		14,165	Altice Finco SA
		$		127,666	7.63%, 02/15/2025^(e)			10,455		9,906
					8.13%, 01/15/2024^(e)			15,895		15,816
Holding Companies - Diversified - 0.59%					9.88%, 12/15/2020^(e)			10,022		10,749
Alphabet Holding Co Inc					Altice Luxembourg SA
7.75%, 11/01/2017		9,020		8,862	7.75%, 05/15/2022^(e)			3,220		3,099
Argos Merger Sub Inc					Cable One Inc
7.13%, 03/15/2023^(e)		11,930		12,556
					5.75%, 06/15/2022^(e)			2,150		2,204
		$		21,418	Cablevision Systems Corp
Home Builders - 2.08%					8.00%, 04/15/2020			10,875		10,603
Lennar Corp					CCO Holdings LLC / CCO Holdings Capital
4.13%, 12/01/2018		9,125		9,330	Corp
4.50%, 11/15/2019		8,300		8,591	5.13%, 05/01/2023^(e)			44,650		44,762
4.75%, 11/15/2022^(g)		17,305		17,305	CSC Holdings LLC
WCI Communities Inc					6.75%, 11/15/2021			4,685		4,547
6.88%, 08/15/2021		21,855		22,948	DISH DBS Corp
Woodside Homes Co LLC / Woodside Homes					5.88%, 07/15/2022			22,230		21,785
Finance Inc					5.88%, 11/15/2024			11,890		11,373
6.75%, 12/15/2021^(e)		18,625		17,321	6.75%, 06/01/2021			36,050		37,222
		$		75,495	7.88%, 09/01/2019			19,500		21,397
					Neptune Finco Corp
Insurance - 2.29%					6.63%, 10/15/2025^(e)			4,225		4,447
CNO Financial Group Inc					10.13%, 01/15/2023 ^(e)			13,135		13,890
4.50%, 05/30/2020		5,855		6,090	Numericable-SFR SAS
Liberty Mutual Group Inc					6.00%, 05/15/2022^(e)			7,655		7,674
7.00%, 03/07/2067^(e),(g)		19,172		18,381	RCN Telecom Services LLC / RCN Capital
Voya Financial Inc					Corp
5.65%, 05/15/2053^(g)		57,935		58,659	8.50%, 08/15/2020^(e)			16,475		17,319
		$		83,130	TVN Finance Corp III AB
					7.38%, 12/15/2020^(e)		EUR	2,475		2,935

Internet - 1.15%					Unitymedia GmbH
United Group BV					6.13%, 01/15/2025^(e)		$	8,940		9,152
7.88%, 11/15/2020^(e)	EUR	12,000		14,099
Zayo Group LLC / Zayo Capital Inc					Unitymedia Hessen GmbH & Co KG /
6.00%, 04/01/2023^(e)	$	21,635		22,057	Unitymedia NRW GmbH
					5.50%, 01/15/2023^(e)			16,650		17,113
10.13%, 07/01/2020		5,286		5,762
					Univision Communications Inc
		$		41,918	6.75%, 09/15/2022^(e)			4,516		4,770
Iron & Steel - 2.23%					8.50%, 05/15/2021^(e)			11,896		12,431
AK Steel Corp					WideOpenWest Finance LLC /
7.63%, 05/15/2020		6,355		3,305	WideOpenWest Capital Corp
ArcelorMittal					13.38%, 10/15/2019			21,140		21,510
6.25%, 03/01/2021^(g)		2,275		2,148	10.25%, 07/15/2019			3,180		3,176
7.75%, 10/15/2039^(g)		38,810		33,085	Ziggo Bond Finance BV
Commercial Metals Co					4.63%, 01/15/2025^(e)		EUR	1,500		1,542
4.88%, 05/15/2023		23,670		20,948				$		318,333
Signode Industrial Group Lux SA/Signode
Industrial Group US Inc					Metal Fabrication & Hardware - 0.26%
6.38%, 05/01/2022^(e)		22,965		21,530	Wise Metals Intermediate Holdings LLC/Wise
					Holdings Finance Corp
		$		81,016	9.75%, PIK 10.50%, 06/15/2019 ^(e),(f)		$	10,055		9,351


		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

Mining - 1.41%					Oil & Gas Services - 0.44%
FMG Resources August 2006 Pty Ltd					Exterran Partners LP / EXLP Finance Corp
6.88%, 04/01/2022^(e)	$	8,180	$	5,849	6.00%, 10/01/2022		$	7,955	$	6,722
8.25%, 11/01/2019^(e)		17,720		15,062	PHI Inc
9.75%, 03/01/2022^(e)		4,215		4,194	5.25%, 03/15/2019			10,570		9,354
Midwest Vanadium Pty Ltd								$		16,076
0.00%, 02/15/2018^(a),(e)		11,225		449
St Barbara Ltd					Packaging & Containers - 2.19%
8.88%, 04/15/2018^(e)		15,120		14,364	Ardagh Finance Holdings SA
					8.63%, PIK 8.63%, 06/15/2019^(e),(f)			7,361		7,710
Taseko Mines Ltd
7.75%, 04/15/2019		4,535		2,358	Ardagh Packaging Finance PLC / Ardagh
					Holdings USA Inc
Teck Resources Ltd					3.34%, 12/15/2019^(e),(g)			14,000		13,790
2.50%, 02/01/2018		10,540		8,985	6.00%, 06/30/2021^(e)			4,280		4,195
		$		51,261	7.00%, 11/15/2020^(e)			1,039		1,041
Miscellaneous Manufacturers - 0.31%					Berry Plastics Corp
Bombardier Inc					6.00%, 10/15/2022^(e)			4,645		4,854
5.50%, 09/15/2018^(e)		6,875		6,445	Beverage Packaging Holdings Luxembourg II
7.50%, 03/15/2025^(e)		6,235		4,848	SA / Beverage Packaging Holdings II
		$		11,293	5.63%, 12/15/2016^(e)			4,845		4,845
					6.00%, 06/15/2017^(e)			2,755		2,769
Oil & Gas - 6.07%					Coveris Holding Corp
Baytex Energy Corp					10.00%, 06/01/2018 ^(e)			11,160		11,048
5.13%, 06/01/2021^(e)		7,195		6,044
					Coveris Holdings SA
Carrizo Oil & Gas Inc					7.88%, 11/01/2019^(e)			8,780		8,341
6.25%, 04/15/2023		1,510		1,436	Crown Cork & Seal Co Inc
7.50%, 09/15/2020		14,800		14,763	7.38%, 12/15/2026			15,449		16,859
Chaparral Energy Inc					Reynolds Group Issuer Inc / Reynolds Group
7.63%, 11/15/2022		18,979		6,263	Issuer LLC / Reynolds Group Issuer
9.88%, 10/01/2020		7,360		2,723	(Luxembourg) S.A.
Chesapeake Energy Corp					7.88%, 08/15/2019			2,735		2,834
4.88%, 04/15/2022		14,585		9,043	9.88%, 08/15/2019			1,193		1,256
6.13%, 02/15/2021		5,525		3,618				$		79,542
Denbury Resources Inc
5.50%, 05/01/2022		18,285		12,800	Pharmaceuticals - 1.71%
EP Energy LLC / Everest Acquisition Finance					JLL/Delta Dutch Pledgeco BV
Inc					8.75%, PIK 9.50%, 05/01/2020^(e),(f)			11,640		11,887
6.38%, 06/15/2023		8,430		6,344	Valeant Pharmaceuticals International Inc
9.38%, 05/01/2020		21,895		19,049	5.38%, 03/15/2020^(e)			10,120		8,804
Halcon Resources Corp					5.50%, 03/01/2023^(e)			8,875		7,455
8.63%, 02/01/2020^(e)		3,090		2,665	5.88%, 05/15/2023^(e)			19,955		16,800
9.25%, 02/15/2022		2,775		888	6.75%, 08/15/2018^(e)			3,000		2,895
9.75%, 07/15/2020		18,280		6,215	7.50%, 07/15/2021^(e)			15,865		14,477
Linn Energy LLC / Linn Energy Finance								$		62,318
Corp
6.25%, 11/01/2019^(g)		9,585		2,252	Pipelines - 1.16%
6.50%, 05/15/2019		13,210		3,435	Energy Transfer Equity LP
Northern Blizzard Resources Inc					5.88%, 01/15/2024			7,960		7,711
7.25%, 02/01/2022^(e)		13,414		10,999	Sabine Pass Liquefaction LLC
					5.63%, 02/01/2021^(g)			10,410		10,332
Oasis Petroleum Inc					5.63%, 03/01/2025^(e)			20,000		19,175
6.50%, 11/01/2021		3,655		3,116
6.88%, 03/15/2022		5,645		4,812	6.25%, 03/15/2022			4,915		4,878
6.88%, 01/15/2023		11,825		10,229				$		42,096
Ocean Rig UDW Inc
7.25%, 04/01/2019^(e)		14,090		6,552	Real Estate - 0.45%
					Crescent Resources LLC / Crescent Ventures
PDC Energy Inc					Inc
7.75%, 10/15/2022		24,945		25,070	10.25%, 08/15/2017 ^(e)			16,155		16,397
QEP Resources Inc
5.25%, 05/01/2023		13,091		11,618
Seven Generations Energy Ltd					REITS- 1.12	%
6.75%, 05/01/2023^(e)		3,080		2,803	DuPont Fabros Technology LP
Seventy Seven Operating LLC					5.88%, 09/15/2021			12,075		12,679
6.63%, 11/15/2019		11,835		7,012	Equinix Inc
Sunoco LP / Sunoco Finance Corp					5.38%, 01/01/2022			10,065		10,515
5.50%, 08/01/2020^(e)		7,070		7,247	iStar Inc
6.38%, 04/01/2023^(e)		10,945		11,027	3.88%, 07/01/2016			1,630		1,622
Ultra Petroleum Corp					4.88%, 07/01/2018			7,230		7,121
6.13%, 10/01/2024^(e)		13,355		7,479	9.00%, 06/01/2017			8,295		8,793
Whiting Canadian Holding Co ULC								$		40,730
8.13%, 12/01/2019		7,900		7,959	Retail - 4.00%
WPX Energy Inc					1011778 BC ULC / New Red Finance Inc
7.50%, 08/01/2020		7,750		7,246	4.63%, 01/15/2022^(e)			9,885		10,033
		$		220,707	Building Materials Holding Corp
					9.00%, 09/15/2018^(e)			14,375		15,229


Schedule of Investments
High Yield Fund
October 31, 2015



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)

Retail (continued)					Telecommunications (continued)
Claire's Stores Inc					Sprint Communications Inc
7.75%, 06/01/2020^(e)	$	3,035	$	865	7.00%, 08/15/2020		$	26,235	$	24,333
9.00%, 03/15/2019^(e)		3,120		2,551	9.00%, 11/15/2018^(e)			12,425		13,660
Dollar Tree Inc					Sprint Corp
5.75%, 03/01/2023^(e)		6,640		6,997	7.13%, 06/15/2024			8,840		7,763
JC Penney Corp Inc					7.88%, 09/15/2023			7,845		7,257
5.65%, 06/01/2020		13,695		12,531	T-Mobile USA Inc
L Brands Inc					6.13%, 01/15/2022			4,110		4,182
6.88%, 11/01/2035^(e)		7,245		7,526	6.25%, 04/01/2021			18,595		19,197
Landry's Holdings II Inc					6.50%, 01/15/2024			4,025		4,085
10.25%, 01/01/2018 ^(e)		18,155		18,700	6.63%, 04/28/2021			12,140		12,565
Landry's Inc					UPCB Finance IV Ltd
9.38%, 05/01/2020^(e)		11,755		12,607	5.38%, 01/15/2025^(e)			2,000		2,002
Michaels Stores Inc					Virgin Media Finance PLC
5.88%, 12/15/2020^(e)		12,293		12,969	5.75%, 01/15/2025^(e)			5,000		4,913
Neiman Marcus Group LTD LLC					6.00%, 10/15/2024^(e)			2,940		2,962
8.75%, 10/15/2021^(e)		8,780		9,120	Virgin Media Secured Finance PLC
Petco Holdings Inc					5.25%, 01/15/2026^(e)			3,965		3,965
8.50%, PIK 9.25%, 10/15/2017^(e),(f)		9,525		9,692	Wind Acquisition Finance SA
Rite Aid Corp					4.75%, 07/15/2020^(e)			10,885		11,075
6.13%, 04/01/2023^(e)		11,685		12,590	7.38%, 04/23/2021^(e)			23,940		24,120
Tops Holding LLC / Tops Markets II Corp								$		236,213
8.00%, 06/15/2022^(e)		13,525		13,998
		$		145,408	Transportation - 2.30%
					Eletson Holdings
Savings & Loans - 0.00%					9.63%, 01/15/2022^(e)			17,244		15,821
Washington Mutual Bank / Henderson NV					Hornbeck Offshore Services Inc
0.00%, 06/15/2011^(a),(b)		3,500		—	5.00%, 03/01/2021			9,980		7,635
0.00%, 01/15/2013^(a)		3,000		1	Navios Maritime Acquisition Corp / Navios
0.00%, 01/15/2015^(a),(g)		2,000		1	Acquisition Finance US Inc
		$		2	8.13%, 11/15/2021^(e)			37,660		36,059
					Navios Maritime Holdings Inc / Navios
Semiconductors - 0.61%					Maritime Finance II US Inc
Micron Technology Inc					7.38%, 01/15/2022^(e)			16,245		12,773
5.25%, 01/15/2024^(e)		22,140		21,199
					Navios South American Logistics Inc / Navios
NXP BV / NXP Funding LLC					Logistics Finance US Inc
5.75%, 02/15/2021^(e)		805		841
					7.25%, 05/01/2022^(e)			13,220		11,121
		$		22,040				$		83,409
Software - 1.44%					TOTAL BONDS			$		2,994,541
Activision Blizzard Inc							Principal
5.63%, 09/15/2021^(e)		17,765		18,790	CONVERTIBLE BONDS - 0.55%		Amount (000's) Value (000's)
6.13%, 09/15/2023^(e)		21,295		23,185
					Banks- 0.19	%
MSCI Inc
5.25%, 11/15/2024^(e)		6,675		7,025	ING Groep NV
					6.00%, 12/29/2049^(d),(g)			6,900		6,753
5.75%, 08/15/2025^(e)		3,315		3,496
		$		52,496
					Food Service - 0.00%
Telecommunications - 6.50%					FU JI Food and Catering Services Holdings
B Communications Ltd					Ltd
7.38%, 02/15/2021^(e)		5,550		6,022
					0.00%, 11/09/2009^(a),(b)		HKD	46,500		—
CenturyLink Inc					0.00%, 10/18/2010^(a),(b)		CNY	245,000		—
5.63%, 04/01/2025		11,325		10,164				$		—
Frontier Communications Corp
8.88%, 09/15/2020^(e)		3,175		3,296	Semiconductors - 0.36%
11.00%, 09/15/2025 ^(e)		12,975		13,599	Jazz Technologies Inc
10.50%, 09/15/2022 ^(e)		7,545		7,828	8.00%, 12/31/2018		$	8,893		13,234
Goodman Networks Inc
12.13%, 07/01/2018		14,363		5,027	TOTAL CONVERTIBLE BONDS			$		19,987
Intelsat Jackson Holdings SA					SENIOR FLOATING RATE INTERESTS -			Principal
7.25%, 10/15/2020		12,140		11,078	6.54	%	Amount (000's) Value (000's)
Intelsat Luxembourg SA
7.75%, 06/01/2021		10,180		6,006	Aerospace & Defense - 0.39%
Level 3 Communications Inc					B/E Aerospace Inc, Term Loan B
					4.00%, 11/19/2021^(g)		$	14,232	$	14,297
5.75%, 12/01/2022		5,470		5,607
Level 3 Financing Inc
5.13%, 05/01/2023^(e)		4,440		4,490	Building Materials - 0.05%
5.38%, 08/15/2022		7,935		8,074	GYP Holdings III Corp, Term Loan B
5.38%, 01/15/2024^(e),(h)		3,460		3,503	7.75%, 03/25/2022^(g)			1,850		1,810
Play Finance 1 SA
6.50%, 08/01/2019	EUR	3,000		3,435
Sprint Capital Corp					Chemicals - 0.59%
6.88%, 11/15/2028	$	7,235		6,005	AZ Chem US Inc, Term Loan
					7.50%, 06/10/2022^(g)			12,993		13,036

SENIOR FLOATING RATE INTERESTS

Principal

SENIOR FLOATING RATE INTERESTS

Principal

(continued)

Amount (000's) Value (000's)

(continued)

Amount (000's) Value (000's)

Chemicals (continued)

Oil & Gas - 0.26%

Emerald Performance Materials LLC, Term

Seadrill Operating LP, Term Loan B

Loan

4.00%, 02/12/2021^(g)

9,837

5,714

7.75%, 07/22/2022^(g)

8,475

8,327

Seventy Seven Operating LLC, Term Loan B

21,363

3.75%, 06/17/2021^(g)

4,488

3,705

9,419

Consumer Products - 0.23%

Dell International LLC, Term Loan B2

Packaging & Containers - 0.19%

4.00%, 04/29/2020^(g)

8,342

8,337

SIG Combibloc PurchaseCo Sarl, Term Loan

4.25%, 03/11/2022^(g)

6,771

6,769

Electric - 0.11%

Texas Competitive Electric Holdings Co LLC,

Term Loan NONEXT

Pharmaceuticals - 0.17%

4.71%, 04/25/2015^(g)

12,873

4,114

Valeant Pharmaceuticals International Inc,

Term Loan BF1

4.00%, 04/01/2022^(g)

6,612

6,137

Electronics - 0.25%

TTM Technologies Inc, Term Loan B

6.00%, 05/07/2021^(g)

9,681

9,051

REITS- 0.31

iStar Inc, Term Loan A2

7.00%, 03/19/2017^(g)

11,269

Entertainment - 0.69%

CCM Merger Inc, Term Loan B

4.50%, 07/30/2021^(g)

5,041

5,023

Retail - 0.61%

Lions Gate Entertainment Corp, Term Loan

Academy Ltd, Term Loan B

5.00%, 06/16/2022^(g)

13,485

13,427

5.00%, 03/11/2022^(g)

10,245

Michaels Stores Inc, Term Loan B

Peninsula Gaming LLC, Term Loan B

4.00%, 01/20/2028^(g)

7,806

7,800

4.25%, 11/30/2017^(g)

9,706

9,687

PetSmart Inc, Term Loan B

24,955

4.25%, 03/11/2022^(g)

958

957

22,184

Forest Products & Paper - 0.75%

Caraustar Industries Inc, Term Loan B

Telecommunications - 0.27%

8.00%, 04/26/2019^(g)

11,643

11,609

Altice Financing SA, Delay-Draw Term Loan

8.00%, 05/01/2019^(g)

11,520

11,463

NewPage Corp, Term Loan B

5.50%, 07/03/2019^(g)

4,986

4,985

9.50%, 02/05/2021^(g)

8,244

4,243

NTELOS Inc, Term Loan B

27,315

5.75%, 11/09/2019^(g)

4,771

4,735

9,720

Healthcare - Services - 0.79%

TOTAL SENIOR FLOATING RATE INTERESTS

237,659

Lantheus Medical Imaging Inc, Term Loan B

7.00%, 06/24/2022^(g)

13,027

11,985

U.S. GOVERNMENT & GOVERNMENT

Principal

MPH Acquisition Holdings LLC, Term Loan

AGENCY OBLIGATIONS - 2.06%

Amount (000's) Value (000's)

U.S. Treasury Bill - 2.06%

3.75%, 03/19/2021^(g)

8,596

8,473

0.22%, 10/13/2016^(i),(j)

75,000

74,764

Radnet Management Inc, Term Loan B

8.00%, 03/25/2021^(g)

8,770

8,419

TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY

28,877

OBLIGATIONS

74,764

Insurance - 0.19%

Total Investments

3,578,652

Asurion LLC, Term Loan

Other Assets in Excess of Liabilities, Net - 1.53%

55,640

8.50%, 02/19/2021^(g)

7,505

6,739

TOTAL NET ASSETS - 100.00%

3,634,292

Internet - 0.02%

(a)

Non-Income Producing Security

Zayo Group LLC, Term Loan B

(b)

Fair value of these investments is determined in good faith by the Manager

3.75%, 05/06/2021^(g)

803

801

under procedures established and periodically reviewed by the Board of

Directors. At the end of the period, the fair value of these securities totaled

Media- 0.56

$488 or 0.01% of net assets.

Univision Communications Inc, Term Loan

(c)

Security is Illiquid. At the end of the period, the value of these securities

totaled $0 or 0.00% of net assets.

4.00%, 03/01/2020^(g)

3,226

3,203

(d)

Perpetual security. Perpetual securities pay an indefinite stream of

Univision Communications Inc, Term Loan

interest, but they may be called by the issuer at an earlier date.

(e)

Security exempt from registration under Rule 144A of the Securities Act of

4.00%, 03/01/2020^(g)

7,924

7,869

1933. These securities may be resold in transactions exempt from

WideOpenWest Finance LLC, Term Loan B

registration, normally to qualified institutional buyers. At the end of the

4.50%, 04/01/2019^(g)

9,724

9,549

period, the value of these securities totaled $1,541,593 or 42.42% of net

assets.

20,621

(f)

Payment in kind; the issuer has the option of paying additional securities

Mining - 0.11%

in lieu of cash.

FMG Resources August 2006 Pty Ltd, Term

(g)

Variable Rate. Rate shown is in effect at October 31, 2015.

Loan B

(h)

Security purchased on a when-issued basis.

3.75%, 06/30/2019^(g)

4,599

3,881

(i)

Rate shown is the discount rate of the original purchase.

(j)

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 $5,597 or 0.15% of net assets.

See accompanying notes

196


Schedule of Investments
High Yield Fund I
October 31, 2015



	COMMON STOCKS - 0.12%			Shares Held	Value(000			's)				Principal
									BONDS (continued)			Amount (000's) Value (000's)
	Electric - 0.06%
	Dynegy Inc ^(a)			15,000		$	292		Automobile Manufacturers - 1.07%
	Upstate New York Power Producers Inc			6,862			173		FCA US LLC / CG Co-Issuer Inc
	(a),(b),(c)								8.25%, 06/15/2021		$	5,669	$	6,065
					$		465		Fiat Chrysler Automobiles NV
									4.50%, 04/15/2020			913		922
	Packaging & Containers - 0.00%								5.25%, 04/15/2023			630		627
	Constar International ^(a),(b),(c)			9,689			—
									General Motors Co
									0.00%, 11/15/2015^(a),(b),(c)			100		—
									0.00%, 11/15/2015^(a),(b),(c)			75		—
	Retail - 0.00%
	Nebraska Book Holdings Inc ^(a),(b)			20,064			21		0.00%, 12/01/2020^(a),(b),(c)			25		—
	Neebo, Inc - Warrants ^(a),(b),(c)			7,519			—		0.00%, 12/01/2020^(a),(b),(c)			50		—
	Neebo, Inc - Warrants ^(a),(b),(c)			3,508			—		0.00%, 07/15/2023^(a),(b),(c)			1,000		—
									0.00%, 09/01/2025^(a),(b),(c)			700		—
					$		21
									0.00%, 05/01/2028^(a),(b),(c)			150		—
	Telecommunications - 0.06%								0.00%, 07/15/2033^(a),(b),(c)			5,050		—
	NII Holdings Inc ^(a)			77,871			547		0.00%, 03/15/2036^(a),(b),(c)			725		—
									Jaguar Land Rover Automotive PLC
	Transportation - 0.00%								4.13%, 12/15/2018^(e)			383		393
	Gener8 Maritime Inc - Warrants ^(a),(b),(c)			1,507			—		4.25%, 11/15/2019^(e)			566		576
									5.63%, 02/01/2023^(e)			300		309
	TOTAL COMMON STOCKS				$		1,033		JB Poindexter & Co Inc
									9.00%, 04/01/2022^(e)			449		475
	INVESTMENT COMPANIES - 3.41%			Shares Held	Value(000			's)
												$		9,367
	Publicly Traded Investment Fund - 3.41%
	BlackRock Liquidity Funds FedFund Portfolio			29,883,100			29,883		Automobile Parts & Equipment - 0.94%
									American Axle & Manufacturing Inc
									6.63%, 10/15/2022			1,000		1,062
	TOTAL INVESTMENT COMPANIES				$		29,883

	PREFERRED STOCKS - 0.35%			Shares Held	Value(000			's)	Goodyear Tire & Rubber Co/The
									6.50%, 03/01/2021			550		584
	Diversified Financial Services - 0.17%								7.00%, 05/15/2022			1,170		1,272
	Ally Financial Inc ^(d),(e)			1,449			1,477		MPG Holdco I Inc
									7.38%, 10/15/2022			289		307
									Pittsburgh Glass Works LLC
	Insurance - 0.18%								8.00%, 11/15/2018^(e)			644		671
	XLIT Ltd ^(d)			1,935			1,596
									Tenneco Inc
									5.38%, 12/15/2024			660		683
	Packaging & Containers - 0.00%								ZF North America Capital Inc
	Constar International ^(a),(b),(c)			977			—		4.00%, 04/29/2020^(e)			2,375		2,399
									4.50%, 04/29/2022^(e)			520		524
	TOTAL PREFERRED STOCKS				$		3,073		4.75%, 04/29/2025^(e)			759		745
				Principal								$		8,247
	BONDS- 88.61	%		Amount (000's)	Value(000			's)	Banks- 2.73	%
	Advertising - 0.32%								Bank of America Corp
	Acosta Inc								6.10%, 12/29/2049^(d),(f)			935		945
	7.75%, 10/01/2022^(e)		$	2,870		$	2,777		Barclays Bank PLC
									7.63%, 11/21/2022			385		440
									Barclays PLC
	Aerospace & Defense - 0.12%								8.25%, 12/29/2049^(d),(f)			435		463
	Kratos Defense & Security Solutions Inc								BNP Paribas SA
	7.00%, 05/15/2019			166			132		7.37%, 12/29/2049^(d),(e),(f)			261		270
	Orbital ATK Inc								CIT Group Inc
	5.25%, 10/01/2021			216			221		3.88%, 02/19/2019			1,695		1,720
	5.50%, 10/01/2023^(e)			170			178
									5.00%, 05/15/2017			385		397
	TransDigm Inc								5.00%, 08/15/2022			928		978
	6.00%, 07/15/2022			519			524		5.25%, 03/15/2018			1,385		1,452
					$		1,055		5.38%, 05/15/2020			3,412		3,681
									6.63%, 04/01/2018^(e)			3,905		4,208
	Airlines - 0.36%
									Citigroup Inc
									5.87%, 12/29/2049^(d),(f)			645		638
	Continental Airlines 2005-ERJ1 Pass Through
	Trust								5.95%, 12/29/2049^(d),(f)			1,120		1,118
	9.80%, 10/01/2022			377			416
	Continental Airlines 2012-3 Class C Pass Thru								Royal Bank of Scotland Group PLC
	Certificates								6.00%, 12/19/2023			1,555		1,688
	6.13%, 04/29/2018			845			871		6.13%, 12/15/2022			3,256		3,571
									7.50%, 12/29/2049^(d),(f)			561		581

	Delta Air Lines 2012-1 Class B Pass Through								8.00%, 12/29/2049^(d),(f)			279		291
	Trust
	6.88%, 05/07/2019^(e)			314			338		Societe Generale SA
									8.00%, 09/29/2049^(d),(e),(f)			1,440		1,455
	Northwest Airlines 2007-1 Class A Pass
	Through Trust											$		23,896
	7.03%, 05/01/2021			1,107			1,242		Beverages - 0.36%
	UAL 2007-1 Pass Through Trust								Constellation Brands Inc
	6.64%, 01/02/2024			309			327		3.75%, 05/01/2021			229		234
					$		3,194		3.88%, 11/15/2019			375		390


Schedule of Investments
High Yield Fund I
October 31, 2015



			Principal					Principal
BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Beverages (continued)						Chemicals (continued)
Constellation Brands Inc	(continued)					Chemours Co/The (continued)
4.25%, 05/01/2023		$	685	$	701	7.00%, 05/15/2025^(e)	$	188	$	140
4.75%, 11/15/2024			805		844	Eagle Spinco Inc
6.00%, 05/01/2022			295		330	4.63%, 02/15/2021		248		241
Cott Beverages Inc						Hexion Inc
6.75%, 01/01/2020			621		658	6.63%, 04/15/2020		409		347
			$		3,157	10.00%, 04/15/2020		341		324
						Huntsman International LLC
Biotechnology - 0.12%						4.88%, 11/15/2020		1,775		1,670
AMAG Pharmaceuticals Inc						5.13%, 11/15/2022^(e)		520		484
7.88%, 09/01/2023^(e)			320		299
						Momentive Performance - Escrow
Concordia Healthcare Corp						0.00%, 10/15/2020^(a),(b),(c)		1,575		—
7.00%, 04/15/2023^(e)			905		787
						Momentive Performance Materials Inc
			$		1,086	3.88%, 10/24/2021		1,575		1,260
Building Materials - 1.81%						NOVA Chemicals Corp
						5.00%, 05/01/2025^(e)		1,778		1,778
Building Materials Corp of America
5.38%, 11/15/2024^(e)			670		689	Olin Corp
6.00%, 10/15/2025^(e)			90		96	5.50%, 08/15/2022		268		251
CEMEX Espana SA/Luxembourg						Platform Specialty Products Corp
9.88%, 04/30/2019^(e)			1,650		1,759	6.50%, 02/01/2022^(e)		469		399
Cemex Finance LLC						PolyOne Corp
6.00%, 04/01/2024^(e)			757		723	5.25%, 03/15/2023		914		916
9.38%, 10/12/2022^(e)			220		239	PQ Corp
Cemex SAB de CV						8.75%, 11/01/2018^(e)		2,900		2,925
6.13%, 05/05/2025^(e)			203		192	Rain CII Carbon LLC / CII Carbon Corp
6.50%, 12/10/2019^(e)			125		127	8.00%, 12/01/2018^(e)		830		723
7.25%, 01/15/2021^(e)			1,950		1,999	8.25%, 01/15/2021^(e)		210		175
Hardwoods Acquisition Inc						Tronox Finance LLC
7.50%, 08/01/2021^(e)			778		716	6.38%, 08/15/2020		30		21
Headwaters Inc						7.50%, 03/15/2022^(e)		916		648
7.25%, 01/15/2019			885		916	WR Grace & Co-Conn
						5.13%, 10/01/2021^(e)		401		417

Masco Corp						5.63%, 10/01/2024^(e)		192		198
4.45%, 04/01/2025			506		507
5.95%, 03/15/2022			690		764			$		18,276
Masonite International Corp
5.63%, 03/15/2023^(e)			373		390
						Coal- 0.18%
NCI Building Systems Inc						Cloud Peak Energy Resources LLC / Cloud
8.25%, 01/15/2023^(e)			420		445	Peak Energy Finance Corp
						6.38%, 03/15/2024		599		284
NWH Escrow Corp
7.50%, 08/01/2021^(e)			197		176	CONSOL Energy Inc
						5.88%, 04/15/2022		1,470		930
Summit Materials LLC / Summit Materials						Peabody Energy Corp
Finance Corp						10.00%, 03/15/2022 ^(e)		1,208		326
6.13%, 07/15/2023			370		368			$		1,540
Unifrax I LLC / Unifrax Holding Co
7.50%, 02/15/2019^(e)			725		700	Commercial Services - 3.69%
US Concrete Inc						ACE Cash Express Inc
8.50%, 12/01/2018			795		825	11.00%, 02/01/2019 ^(e)		1,106		365
USG Corp						ADT Corp/The
5.50%, 03/01/2025^(e)			395		406	2.25%, 07/15/2017		790		786
9.75%, 01/15/2018^(f)			2,175		2,442	4.13%, 06/15/2023		2,912		2,803
Vulcan Materials Co						4.88%, 07/15/2042		900		689
4.50%, 04/01/2025			594		608	Ahern Rentals Inc
7.50%, 06/15/2021			650		770	7.38%, 05/15/2023^(e)		625		581
			$		15,857	APX Group Inc
						8.75%, 12/01/2020		3,310		2,731
Chemicals - 2.09%
Ashland Inc						Avis Budget Car Rental LLC / Avis Budget
4.75%, 08/15/2022^(f)			867		867	Finance Inc
						5.13%, 06/01/2022^(e)		448		457
Axalta Coating Systems US Holdings Inc /						5.25%, 03/15/2025^(e)		183		182
Axalta Coating Systems Dutch Holding B
7.38%, 05/01/2021^(e)			695		735	CEB Inc
						5.63%, 06/15/2023^(e)		266		270
Axiall Corp						Cenveo Corp
4.88%, 05/15/2023			532		506	8.50%, 09/15/2022^(e)		420		309
Basell Finance Co BV
8.10%, 03/15/2027^(e)			575		737	Garda World Security Corp
						7.25%, 11/15/2021^(e)		925		844
Blue Cube Spinco Inc
9.75%, 10/15/2023^(e)			1,000		1,077	Harland Clarke Holdings Corp
						9.25%, 03/01/2021^(e)		445		378
10.00%, 10/15/2025 ^(e)			883		958
						Hertz Corp/The
Celanese US Holdings LLC						5.88%, 10/15/2020		980		1,014
4.63%, 11/15/2022			295		296	7.38%, 01/15/2021		849		884
Chemours Co/The
6.63%, 05/15/2023^(e)			245		183


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Commercial Services (continued)					Diversified Financial Services - 5.64%
Jaguar Holding Co II / Pharmaceutical Product					AerCap Ireland Capital Ltd / AerCap Global
Development LLC					Aviation Trust
6.38%, 08/01/2023^(e)	$	1,235	$	1,237	3.75%, 05/15/2019	$	1,810	$	1,832
Jurassic Holdings III Inc					4.50%, 05/15/2021		2,520		2,589
6.88%, 02/15/2021^(e)		800		576	4.63%, 07/01/2022		379		387
Live Nation Entertainment Inc					Aircastle Ltd
7.00%, 09/01/2020^(e)		274		290	6.25%, 12/01/2019		1,532		1,674
Mustang Merger Corp					Alliance Data Systems Corp
8.50%, 08/15/2021^(e)		383		402	5.38%, 08/01/2022^(e)		305		310
RR Donnelley & Sons Co					Ally Financial Inc
6.00%, 04/01/2024		615		564	2.75%, 01/30/2017		410		412
6.50%, 11/15/2023		970		909	3.60%, 05/21/2018		1,385		1,402
7.00%, 02/15/2022		665		653	4.13%, 03/30/2020		465		480
7.25%, 05/15/2018		383		410	4.63%, 05/19/2022		192		200
7.63%, 06/15/2020		2,755		2,858	4.63%, 03/30/2025		825		831
7.88%, 03/15/2021		1,215		1,268	5.13%, 09/30/2024		665		701
8.25%, 03/15/2019		2,275		2,548	5.50%, 02/15/2017		335		348
Service Corp International/US					6.25%, 12/01/2017		1,665		1,777
5.38%, 05/15/2024		1,845		1,967	8.00%, 03/15/2020		3,505		4,145
8.00%, 11/15/2021		440		524	8.00%, 11/01/2031		706		863
United Rentals North America Inc					8.00%, 11/01/2031		900		1,091
5.50%, 07/15/2025		550		549	CNG Holdings Inc
5.75%, 11/15/2024		1,050		1,066	9.38%, 05/15/2020^(e)		920		466
6.13%, 06/15/2023		2,140		2,233	Denali Borrower LLC / Denali Finance Corp
7.38%, 05/15/2020		945		1,003	5.63%, 10/15/2020^(e)		812		864
8.25%, 02/01/2021		920		968	E*TRADE Financial Corp
		$		32,318	4.63%, 09/15/2023		382		394
					5.38%, 11/15/2022		465		497
Computers - 0.71%					Icahn Enterprises LP / Icahn Enterprises
IHS Inc					Finance Corp
5.00%, 11/01/2022		2,422		2,446	3.50%, 03/15/2017		1,745		1,765
NCR Corp					4.88%, 03/15/2019		520		532
4.63%, 02/15/2021		405		400	5.88%, 02/01/2022		669		689
5.88%, 12/15/2021		250		252	ILFC E-Capital Trust I
Riverbed Technology Inc					4.57%, 12/21/2065^(e),(f)		1,483		1,368
8.88%, 03/01/2023^(e)		560		521
					ILFC E-Capital Trust II
SunGard Data Systems Inc					6.25%, 12/21/2065^(e),(f)		915		860
6.63%, 11/01/2019		490		507	International Lease Finance Corp
7.38%, 11/15/2018		319		327	3.88%, 04/15/2018		620		629
7.63%, 11/15/2020		1,667		1,738	4.63%, 04/15/2021		2,672		2,766
		$		6,191	5.88%, 08/15/2022		185		202
Consumer Products - 0.17%					6.25%, 05/15/2019		2,820		3,067
Spectrum Brands Inc					8.63%, 01/15/2022		2,334		2,871
5.75%, 07/15/2025^(e)		630		672	8.88%, 09/01/2017		1,795		1,992
6.13%, 12/15/2024^(e)		736		793	National Financial Partners Corp
					9.00%, 07/15/2021^(e)		480		470
		$		1,465
					Nationstar Mortgage LLC / Nationstar Capital
Cosmetics & Personal Care - 0.26%					Corp
Edgewell Personal Care Co					6.50%, 07/01/2021		232		212
4.70%, 05/19/2021		525		541	7.88%, 10/01/2020		327		322
4.70%, 05/24/2022		1,335		1,367	9.63%, 05/01/2019		126		130
Revlon Consumer Products Corp					Navient Corp
5.75%, 02/15/2021^(f)		325		329	4.63%, 09/25/2017		205		207
		$		2,237	4.88%, 06/17/2019		3,945		3,817
					5.50%, 01/15/2019		1,475		1,466
Distribution & Wholesale - 0.57%
Beacon Roofing Supply Inc					5.88%, 03/25/2021		1,145		1,084
6.38%, 10/01/2023^(e)		243		256	6.13%, 03/25/2024		1,044		942
Global Partners LP / GLP Finance Corp					6.25%, 01/25/2016		355		358
					Quicken Loans Inc
6.25%, 07/15/2022		315		290	5.75%, 05/01/2025^(e)		756		750
7.00%, 06/15/2023		425		400
H&E Equipment Services Inc					Walter Investment Management Corp
7.00%, 09/01/2022		894		907	7.88%, 12/15/2021		2,075		1,681
HD Supply Inc							$		49,443
5.25%, 12/15/2021^(e)		1,580		1,659	Electric - 2.54%
7.50%, 07/15/2020		925		985	AES Corp/VA
Univar USA Inc					4.88%, 05/15/2023		1,000		927
6.75%, 07/15/2023^(e)		475		470	5.50%, 04/15/2025		525		488
		$		4,967	Calpine Corp
					0.00%, 07/15/2013^(a),(b),(c)		1,500		—
					5.38%, 01/15/2023		650		621
					5.50%, 02/01/2024		1,000		950
					6.00%, 01/15/2022^(e)		1,295		1,361


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

Electric (continued)					Entertainment (continued)
Dynegy Inc					GLP Capital LP / GLP Financing II Inc
5.88%, 06/01/2023	$	727	$	680	4.38%, 11/01/2018		$	590	$	611
6.75%, 11/01/2019		575		574	4.88%, 11/01/2020			4,530		4,666
7.38%, 11/01/2022		900		902	5.38%, 11/01/2023			1,515		1,530
GenOn Energy Inc					International Game Technology PLC
9.88%, 10/15/2020		1,000		829	6.50%, 02/15/2025^(e)			1,715		1,612
InterGen NV					Isle of Capri Casinos Inc
7.00%, 06/30/2023^(e)		643		555	5.88%, 03/15/2021			1,545		1,626
IPALCO Enterprises Inc					8.88%, 06/15/2020			1,209		1,300
5.00%, 05/01/2018		650		686	Mohegan Tribal Gaming Authority
NRG Energy Inc					9.75%, 09/01/2021			3,475		3,579
6.25%, 07/15/2022		1,790		1,647	11.00%, 09/15/2018 ^(e)			254		254
6.25%, 05/01/2024		1,000		895	Peninsula Gaming LLC / Peninsula Gaming
6.63%, 03/15/2023		1,833		1,705	Corp
7.63%, 01/15/2018		1,390		1,456	8.38%, 02/15/2018^(e)			1,850		1,924
7.88%, 05/15/2021		3,110		3,094	Pinnacle Entertainment Inc
8.25%, 09/01/2020		535		548	6.38%, 08/01/2021			980		1,044
Talen Energy Supply LLC					7.50%, 04/15/2021			960		1,012
5.13%, 07/15/2019^(e)		2,716		2,485	7.75%, 04/01/2022			955		1,058
6.50%, 06/01/2025^(e)		1,312		1,164	Regal Entertainment Group
Terraform Global Operating LLC					5.75%, 03/15/2022			1,885		1,946
9.75%, 08/15/2022^(e)		382		342	5.75%, 06/15/2023			525		525
Texas Competitive Electric Holdings Co LLC					Scientific Games International Inc
/ TCEH Finance Inc					6.25%, 09/01/2020			940		653
0.00%, 10/01/2020^(a),(e),(f)		1,075		363	6.63%, 05/15/2021			925		643
		$		22,272	7.00%, 01/01/2022^(e)			840		845
					10.00%, 12/01/2022			5,590		4,947
Electrical Components & Equipment - 0.24%					Shingle Springs Tribal Gaming Authority
Anixter Inc					9.75%, 09/01/2021^(e)			595		625
5.50%, 03/01/2023^(e)		425		439
					Six Flags Entertainment Corp
Energizer Holdings Inc					5.25%, 01/15/2021^(e)			225		233
5.50%, 06/15/2025^(e)		809		825
					WMG Acquisition Corp
EnerSys					5.63%, 04/15/2022^(e)			500		495
5.00%, 04/30/2023^(e)		240		243
					6.75%, 04/15/2022^(e)			800		740
International Wire Group Holdings Inc
8.50%, 10/15/2017^(e)		593		614				$		36,141
		$		2,121	Environmental Control - 0.12%
					Casella Waste Systems Inc
Electronics - 0.15%					7.75%, 02/15/2019			1,075		1,091
Allegion PLC
5.88%, 09/15/2023		240		251
Flextronics International Ltd					Food- 2.41	%
5.00%, 02/15/2023		1,080		1,103	Albertson's Holdings LLC/Safeway Inc
		$		1,354	7.75%, 10/15/2022^(e)			1,304		1,405
					Bumble Bee Holdings Inc
Energy - Alternate Sources - 0.01%					9.00%, 12/15/2017^(e)			425		437
TerraForm Power Operating LLC
6.13%, 06/15/2025^(e)		137		123	Darling Ingredients Inc
					5.38%, 01/15/2022			1,345		1,335
					Dean Foods Co
					6.50%, 03/15/2023^(e)			1,500		1,582
Engineering & Construction - 0.63%
AECOM					Ingles Markets Inc
5.75%, 10/15/2022^(e)		444		462	5.75%, 06/15/2023			440		449
5.88%, 10/15/2024^(e)		2,475		2,555	JBS USA LLC / JBS USA Finance Inc
					5.75%, 06/15/2025^(e)			621		601
MasTec Inc
4.88%, 03/15/2023		1,202		1,007	5.88%, 07/15/2024^(e)			1,421		1,393
					7.25%, 06/01/2021^(e)			1,227		1,284

SBA Communications Corp					7.25%, 06/01/2021^(e)			1,517		1,587
4.88%, 07/15/2022		520		531
Tutor Perini Corp					8.25%, 02/01/2020^(e)			1,193		1,250
7.63%, 11/01/2018		985		1,005	Pilgrim's Pride Corp
					5.75%, 03/15/2025^(e)			395		404
		$		5,560
					Post Holdings Inc
Entertainment - 4.12%					6.00%, 12/15/2022^(e)			2,760		2,774
AMC Entertainment Inc					6.75%, 12/01/2021^(e)			1,339		1,386
5.75%, 06/15/2025		945		952	7.75%, 03/15/2024^(e)			882		939
5.88%, 02/15/2022		685		709	8.00%, 07/15/2025^(e)			478		518
Cedar Fair LP / Canada's Wonderland Co /					Smithfield Foods Inc
Magnum Management Corp					5.88%, 08/01/2021^(e)			1,426		1,497
5.25%, 03/15/2021		1,325		1,381	6.63%, 08/15/2022			875		936
Chukchansi Economic Development					SUPERVALU Inc
Authority					7.75%, 11/15/2022			1,343		1,321
0.00%, 05/30/2020^(a),(e)		1,268		729	TreeHouse Foods Inc
Cinemark USA Inc					4.88%, 03/15/2022			53		51
5.13%, 12/15/2022		500		502				$		21,149


			Principal					Principal
BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Forest Products & Paper - 0.13%						Healthcare - Services (continued)
Cascades Inc						Fresenius Medical Care US Finance II Inc
5.50%, 07/15/2022^(e)		$	408	$	397	4.13%, 10/15/2020^(e)	$	538	$	550
5.75%, 07/15/2023^(e)			300		288	4.75%, 10/15/2024^(e)		1,270		1,286
Clearwater Paper Corp						5.63%, 07/31/2019^(e)		1,359		1,478
4.50%, 02/01/2023			370		353	5.88%, 01/31/2022^(e)		1,214		1,323
5.38%, 02/01/2025^(e)			104		103	6.50%, 09/15/2018^(e)		1,520		1,668
			$		1,141	Fresenius Medical Care US Finance Inc
						5.75%, 02/15/2021^(e)		255		277
Gas- 0.14	%					HCA Holdings Inc
AmeriGas Partners LP / AmeriGas Finance						6.25%, 02/15/2021		619		676
Corp						HCA Inc
6.25%, 08/20/2019			500		511	4.25%, 10/15/2019		1,890		1,947
NGL Energy Partners LP / NGL Energy						4.75%, 05/01/2023		650		666
Finance Corp						5.00%, 03/15/2024		2,109		2,172
5.13%, 07/15/2019			281		261	5.25%, 04/15/2025		571		591
6.88%, 10/15/2021			516		493	5.38%, 02/01/2025		1,726		1,771
			$		1,265	5.88%, 03/15/2022		531		584
Hand & Machine Tools - 0.09%						5.88%, 05/01/2023		478		507
Milacron LLC / Mcron Finance Corp						6.50%, 02/15/2020		2,377		2,660
7.75%, 02/15/2021^(e)			790		810	7.50%, 02/15/2022		825		949
						7.69%, 06/15/2025		1,130		1,249
						HealthSouth Corp
Healthcare - Products - 1.72%						5.75%, 11/01/2024		254		254
Alere Inc
6.38%, 07/01/2023^(e)			1,391		1,446	IASIS Healthcare LLC / IASIS Capital Corp
						8.38%, 05/15/2019		4,407		4,506
6.50%, 06/15/2020			1,168		1,206	LifePoint Health Inc
ConvaTec Healthcare E SA						5.50%, 12/01/2021		598		607
10.50%, 12/15/2018 ^(e)			1,383		1,430
						MPH Acquisition Holdings LLC
Crimson Merger Sub Inc						6.63%, 04/01/2022^(e)		1,235		1,260
6.63%, 05/15/2022^(e)			457		396
						Tenet Healthcare Corp
DJO Finco Inc / DJO Finance LLC / DJO						4.38%, 10/01/2021		530		529
Finance Corp						4.50%, 04/01/2021		750		750
8.13%, 06/15/2021^(e)			2,242		2,225
						5.00%, 03/01/2019		401		392
Halyard Health Inc						5.50%, 03/01/2019		270		266
6.25%, 10/15/2022			320		327	6.00%, 10/01/2020		1,151		1,243
Hill-Rom Holdings Inc						6.25%, 11/01/2018		1,417		1,509
5.75%, 09/01/2023^(e),(f)			325		332
						6.75%, 06/15/2023		575		571
Hologic Inc						6.88%, 11/15/2031		535		481
5.25%, 07/15/2022^(e)			1,095		1,143
						8.00%, 08/01/2020		603		624
Mallinckrodt International Finance SA						8.13%, 04/01/2022		1,787		1,890
4.75%, 04/15/2023			451		392	Universal Health Services Inc
Mallinckrodt International Finance SA /						4.75%, 08/01/2022^(e)		259		264
Mallinckrodt CB LLC								$		49,245
4.88%, 04/15/2020^(e)			995		954
5.50%, 04/15/2025^(e)			3,175		2,889	Holding Companies - Diversified - 0.35%
5.63%, 10/15/2023^(e)			1,055		995	Argos Merger Sub Inc
5.75%, 08/01/2022^(e)			815		775	7.13%, 03/15/2023^(e)		2,930		3,084
Sterigenics-Nordion Holdings LLC
6.50%, 05/15/2023^(e)			190		191
						Home Builders - 1.79%
Teleflex Inc						Brookfield Residential Properties Inc
5.25%, 06/15/2024			367		375	6.38%, 05/15/2025^(e)		188		181
			$		15,076	Brookfield Residential Properties Inc /
Healthcare - Services - 5.62%						Brookfield Residential US Corp
Acadia Healthcare Co Inc						6.13%, 07/01/2022^(e)		248		244
6.13%, 03/15/2021			253		263	CalAtlantic Group Inc
Amsurg Corp						5.38%, 10/01/2022		735		750
5.63%, 11/30/2020			364		370	5.88%, 11/15/2024		389		408
5.63%, 07/15/2022			690		678	8.38%, 01/15/2021		910		1,079
Centene Corp						DR Horton Inc
4.75%, 05/15/2022			652		649	4.38%, 09/15/2022		682		696
CHS/Community Health Systems Inc						4.75%, 02/15/2023		25		26
5.13%, 08/15/2018			1,411		1,437	5.75%, 08/15/2023		1,610		1,759
5.13%, 08/01/2021			1,363		1,407	Lennar Corp
6.88%, 02/01/2022			2,090		2,105	4.50%, 06/15/2019		85		88
7.13%, 07/15/2020			386		396	4.50%, 11/15/2019		820		849
8.00%, 11/15/2019			1,631		1,696	4.75%, 12/15/2017		1,065		1,102
						4.75%, 11/15/2022^(f)		1,695		1,695
DaVita HealthCare Partners Inc
5.00%, 05/01/2025			1,365		1,355	4.75%, 05/30/2025		410		406
5.13%, 07/15/2024			1,285		1,304	4.88%, 12/15/2023^(g)		100		100
5.75%, 08/15/2022			1,159		1,217	M/I Homes Inc
Envision Healthcare Corp						8.63%, 11/15/2018		460		470
5.13%, 07/01/2022^(e)			894		868


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

Home Builders (continued)					Iron & Steel (continued)
Mattamy Group Corp					Signode Industrial Group Lux SA/Signode
6.50%, 11/15/2020^(e)	$	794	$	782	Industrial Group US Inc
Meritage Homes Corp					6.38%, 05/01/2022^(e)		$	600	$	563
6.00%, 06/01/2025		215		220	Steel Dynamics Inc
7.00%, 04/01/2022		355		388	5.13%, 10/01/2021			400		397
7.15%, 04/15/2020		315		343	5.25%, 04/15/2023			200		195
PulteGroup Inc					5.50%, 10/01/2024			320		316
6.00%, 02/15/2035		290		288	6.38%, 08/15/2022			320		329
Taylor Morrison Communities Inc / Monarch								$		9,468
Communities Inc
5.25%, 04/15/2021^(e)		1,875		1,889	Leisure Products & Services - 0.16%
5.63%, 03/01/2024^(e)		366		361	NCL Corp Ltd
					5.25%, 11/15/2019^(e)			920		955
5.88%, 04/15/2023^(e)		467		473
					Sabre GLBL Inc
Toll Brothers Finance Corp					5.38%, 04/15/2023^(e)			289		293
4.00%, 12/31/2018		230		239
4.38%, 04/15/2023		90		89	Viking Cruises Ltd
					6.25%, 05/15/2025^(e)			120		118
4.88%, 11/15/2025		269		269
WCI Communities Inc								$		1,366
6.88%, 08/15/2021		487		511	Lodging - 1.16%
		$		15,705	Boyd Gaming Corp
Home Furnishings - 0.05%					6.88%, 05/15/2023			216		229
Tempur Sealy International Inc					FelCor Lodging LP
5.63%, 10/15/2023^(e)		405		424	6.00%, 06/01/2025			225		233
					Hilton Worldwide Finance LLC / Hilton
					Worldwide Finance Corp
Housewares - 0.03%					5.63%, 10/15/2021			510		534
Scotts Miracle-Gro Co/The					MGM Resorts International
6.00%, 10/15/2023^(e)		267		281	6.00%, 03/15/2023			660		670
					7.75%, 03/15/2022			2,100		2,331
Insurance - 0.34%					8.63%, 02/01/2019			1,610		1,819
CNO Financial Group Inc					Seminole Hard Rock Entertainment Inc /
4.50%, 05/30/2020		183		190	Seminole Hard Rock International LLC
					5.88%, 05/15/2021^(e)			755		753
5.25%, 05/30/2025		481		511
Fidelity & Guaranty Life Holdings Inc					Station Casinos LLC
6.38%, 04/01/2021^(e)		425		447	7.50%, 03/01/2021			2,165		2,311
Hartford Financial Services Group Inc/The					Wynn Las Vegas LLC / Wynn Las Vegas
8.13%, 06/15/2068^(f)		395		439	Capital Corp
					4.25%, 05/30/2023^(e)			210		187
Liberty Mutual Group Inc					5.50%, 03/01/2025^(e)			1,185		1,112
7.80%, 03/07/2087^(e)		626		734
USI Inc/NY								$		10,179
7.75%, 01/15/2021^(e)		636		636
					Machinery - Construction & Mining - 0.41%
		$		2,957	BlueLine Rental Finance Corp
					7.00%, 02/01/2019^(e)			1,256		1,267
Internet - 0.45%
Blue Coat Holdings Inc					Oshkosh Corp
8.38%, 06/01/2023^(e)		273		283	5.38%, 03/01/2025			323		324
IAC/InterActiveCorp					Terex Corp
4.88%, 11/30/2018		1,630		1,675	6.00%, 05/15/2021			1,220		1,208
Netflix Inc					6.50%, 04/01/2020			775		781
5.50%, 02/15/2022^(e)		425		448				$		3,580
5.88%, 02/15/2025^(e)		425		450
					Machinery - Diversified - 0.68%
VeriSign Inc					ATS Automation Tooling Systems Inc
5.25%, 04/01/2025		149		152	6.50%, 06/15/2023^(e)			453		464
Zayo Group LLC / Zayo Capital Inc					Briggs & Stratton Corp
6.00%, 04/01/2023^(e)		580		591	6.88%, 12/15/2020			475		519
10.13%, 07/01/2020		349		380	Case New Holland Industrial Inc
		$		3,979	7.88%, 12/01/2017			2,605		2,817
Iron & Steel - 1.08%					Gardner Denver Inc
					6.88%, 08/15/2021^(e)			345		299
AK Steel Corp
8.75%, 12/01/2018		470		452	Manitowoc Co Inc/The
Allegheny Technologies Inc					8.50%, 11/01/2020			1,025		1,067
7.37%, 08/15/2023^(f)		490		416	Zebra Technologies Corp
ArcelorMittal					7.25%, 10/15/2022			693		756
6.13%, 06/01/2025		215		185				$		5,922
6.25%, 03/01/2021^(f)		200		189
					Media- 8.44	%
7.00%, 02/25/2022^(f)		2,290		2,170	Altice Financing SA
7.75%, 10/15/2039^(f)		3,355		2,860	6.63%, 02/15/2023^(e)			865		867
10.60%, 06/01/2019 ^(f)		545		602
					Altice Finco SA
Commercial Metals Co					8.13%, 01/15/2024^(e)			200		199
6.50%, 07/15/2017		455		472	9.88%, 12/15/2020^(e)			200		215
7.35%, 08/15/2018		300		322


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)

Media (continued)					Media (continued)
Altice Luxembourg SA					Sinclair Television Group Inc	(continued)
7.63%, 02/15/2025^(e)	$	1,069	$	983	6.13%, 10/01/2022	$	1,030	$	1,058
7.75%, 05/15/2022^(e)		3,479		3,349	Sirius XM Radio Inc
AMC Networks Inc					4.25%, 05/15/2020^(e)		190		192
7.75%, 07/15/2021		812		871	4.63%, 05/15/2023^(e)		245		242
Cablevision Systems Corp					5.88%, 10/01/2020^(e)		1,585		1,685
8.00%, 04/15/2020		1,569		1,530	TEGNA Inc
8.63%, 09/15/2017		80		85	4.88%, 09/15/2021^(e)		145		144
CCO Holdings LLC / CCO Holdings Capital					5.13%, 10/15/2019		1,850		1,929
Corp					5.13%, 07/15/2020		1,055		1,100
5.13%, 05/01/2023^(e)		260		261	5.50%, 09/15/2024^(e)		495		502
5.25%, 09/30/2022		845		856	6.38%, 10/15/2023		565		610
5.38%, 05/01/2025^(e)		710		703	7.13%, 09/01/2018		1,140		1,164
6.63%, 01/31/2022		766		812	Time Warner Cable Inc
CCO Safari II LLC					7.30%, 07/01/2038		485		525
4.46%, 07/23/2022^(e)		654		663	Tribune Media Co
Cequel Communications Holdings I LLC /					5.88%, 07/15/2022^(e)		2,545		2,615
Cequel Capital Corp					Unitymedia Hessen GmbH & Co KG /
5.13%, 12/15/2021^(e)		1,455		1,398	Unitymedia NRW GmbH
5.13%, 12/15/2021^(e)		319		306	5.00%, 01/15/2025^(e)		300		299
6.38%, 09/15/2020^(e)		1,502		1,504	5.50%, 01/15/2023^(e)		300		308
Clear Channel Worldwide Holdings Inc					Univision Communications Inc
6.50%, 11/15/2022		1,847		1,902	5.13%, 05/15/2023^(e)		2,230		2,208
6.50%, 11/15/2022		2,273		2,369	5.13%, 02/15/2025^(e)		300		295
7.63%, 03/15/2020		3,101		3,217	6.75%, 09/15/2022^(e)		517		546
7.63%, 03/15/2020		150		152	Videotron Ltd
CSC Holdings LLC					5.00%, 07/15/2022		99		103
6.75%, 11/15/2021		461		447	5.38%, 06/15/2024^(e)		309		317
7.63%, 07/15/2018		765		812	WideOpenWest Finance LLC /
Cumulus Media Holdings Inc					WideOpenWest Capital Corp
7.75%, 05/01/2019		2,440		1,623	10.25%, 07/15/2019		685		684
DISH DBS Corp							$		73,990
5.00%, 03/15/2023		545		504
5.13%, 05/01/2020		2,080		2,072	Metal Fabrication & Hardware - 0.05%
5.88%, 07/15/2022		233		228	Wise Metals Group LLC / Wise Alloys
5.88%, 11/15/2024		2,245		2,147	Finance Corp
					8.75%, 12/15/2018^(e)		500		473
6.75%, 06/01/2021		4,175		4,311
7.88%, 09/01/2019		225		247
Gray Television Inc					Mining - 1.10%
7.50%, 10/01/2020		883		922	Alcoa Inc
iHeartCommunications Inc					5.13%, 10/01/2024		1,440		1,427
6.88%, 06/15/2018		503		433	5.40%, 04/15/2021		243		251
7.25%, 10/15/2027		730		482	5.87%, 02/23/2022		408		426
9.00%, 12/15/2019		1,072		907	5.90%, 02/01/2027		619		628
9.00%, 03/01/2021		82		67	5.95%, 02/01/2037		45		42
11.25%, 03/01/2021		3,209		2,744	6.75%, 01/15/2028		661		710
10.00%, 01/15/2018		440		233	Aleris International Inc
Liberty Interactive LLC					7.63%, 02/15/2018		298		279
8.50%, 07/15/2029		695		728	7.88%, 11/01/2020		205		193
LIN Television Corp					Coeur Mining Inc
5.88%, 11/15/2022^(e)		1,020		1,028	7.88%, 02/01/2021		1,413		865
Neptune Finco Corp					First Quantum Minerals Ltd
10.88%, 10/15/2025 ^(e)		1,565		1,671	6.75%, 02/15/2020^(e)		439		334
Nexstar Broadcasting Inc					7.00%, 02/15/2021^(e)		439		325
6.13%, 02/15/2022^(e)		445		445	FMG Resources August 2006 Pty Ltd
Nielsen Finance LLC / Nielsen Finance Co					9.75%, 03/01/2022^(e)		510		507
5.00%, 04/15/2022^(e)		3,382		3,437	Hecla Mining Co
Numericable-SFR SAS					6.88%, 05/01/2021		963		819
4.88%, 05/15/2019^(e)		1,825		1,834	Lundin Mining Corp
6.00%, 05/15/2022^(e)		5,057		5,070	7.50%, 11/01/2020^(e)		590		596
6.25%, 05/15/2024^(e)		1,392		1,392	7.88%, 11/01/2022^(e)		350		351
Quebecor Media Inc					New Gold Inc
5.75%, 01/15/2023		180		185	6.25%, 11/15/2022^(e)		495		424
Quebecor World PLC					7.00%, 04/15/2020^(e)		435		406
0.00%, 01/15/2025^(a),(b),(c)		480		1	Taseko Mines Ltd
0.00%, 11/15/2025^(a),(b),(c)		1,075		1	7.75%, 04/15/2019		305		159
0.00%, 08/01/2027^(a),(b),(c)		830		1	Teck Resources Ltd
RCN Telecom Services LLC / RCN Capital					6.00%, 08/15/2040		1,575		874
Corp							$		9,616
8.50%, 08/15/2020^(e)		313		329
Sinclair Television Group Inc					Miscellaneous Manufacturers - 0.14%
5.63%, 08/01/2024^(e)		940		921	Bombardier Inc
					4.75%, 04/15/2019^(e)		428		370


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)

Miscellaneous Manufacturers (continued)					Oil & Gas (continued)
Bombardier Inc (continued)					Newfield Exploration Co	(continued)
5.50%, 09/15/2018^(e)	$	322	$	302	5.75%, 01/30/2022	$	1,345	$	1,365
7.50%, 03/15/2018^(e)		559		554	Noble Energy Inc
		$		1,226	5.63%, 05/01/2021		250		253
					5.88%, 06/01/2022		649		654
Office & Business Equipment - 0.05%					5.88%, 06/01/2024		784		787
CDW LLC / CDW Finance Corp					Oasis Petroleum Inc
5.00%, 09/01/2023		136		141	6.50%, 11/01/2021		20		17
5.50%, 12/01/2024		240		252	6.88%, 03/15/2022		2,036		1,735
		$		393	Parker Drilling Co
Oil & Gas - 5.44%					7.50%, 08/01/2020		460		382
Antero Resources Corp					Penn Virginia Corp
5.13%, 12/01/2022		514		461	8.50%, 05/01/2020		373		108
5.38%, 11/01/2021		330		304	Precision Drilling Corp
5.63%, 06/01/2023^(e)		980		902	5.25%, 11/15/2024		633		524
6.00%, 12/01/2020		578		555	6.50%, 12/15/2021		235		204
Blue Racer Midstream LLC / Blue Racer					QEP Resources Inc
Finance Corp					5.25%, 05/01/2023		549		487
6.13%, 11/15/2022^(e)		1,097		1,026	5.38%, 10/01/2022		550		495
California Resources Corp					6.88%, 03/01/2021		1,075		1,043
5.00%, 01/15/2020		472		343	Range Resources Corp
					4.88%, 05/15/2025^(e)		680		609
5.50%, 09/15/2021		859		591
6.00%, 11/15/2024		797		542	5.00%, 03/15/2023		1,055		936
					Rice Energy Inc
Chesapeake Energy Corp					7.25%, 05/01/2023^(e)		405		375
4.88%, 04/15/2022		4,473		2,773
5.75%, 03/15/2023		235		148	Sabine Oil & Gas Corp
6.13%, 02/15/2021		402		263	0.00%, 02/15/2017^(a)		195		18
7.25%, 12/15/2018		325		262	SandRidge Energy Inc
Cimarex Energy Co					7.50%, 02/15/2023		2,030		472
4.38%, 06/01/2024		492		489	8.13%, 10/15/2022		815		192
					8.75%, 06/01/2020^(e)		905		553
5.88%, 05/01/2022		142		150
Citgo Holding Inc					SM Energy Co
10.75%, 02/15/2020 ^(e)		455		457	5.00%, 01/15/2024		880		790
CITGO Petroleum Corp					5.63%, 06/01/2025		409		372
6.25%, 08/15/2022^(e)		537		526	6.50%, 11/15/2021		585		576
Comstock Resources Inc					6.50%, 01/01/2023		615		606
9.50%, 06/15/2020		359		79	Stone Energy Corp
10.00%, 03/15/2020 ^(e)		566		369	7.50%, 11/15/2022		562		362
Concho Resources Inc					Summit Midstream Holdings LLC / Summit
5.50%, 04/01/2023		1,492		1,499	Midstream Finance Corp
6.50%, 01/15/2022		545		565	5.50%, 08/15/2022		815		709
					Sunoco LP / Sunoco Finance Corp
Denbury Resources Inc					5.50%, 08/01/2020^(e)		462		474
4.63%, 07/15/2023		1,920		1,282
EP Energy LLC / Everest Acquisition Finance					6.38%, 04/01/2023^(e)		825		831
Inc					Talos Production LLC / Talos Production
6.38%, 06/15/2023		681		512	Finance Inc
7.75%, 09/01/2022		627		483	9.75%, 02/15/2018^(e)		689		332
9.38%, 05/01/2020		936		814	Tesoro Corp
Halcon Resources Corp					5.13%, 04/01/2024		328		331
13.00%, 02/15/2022 ^(e)		641		373	Transocean Inc
					3.00%, 10/15/2017^(f)		265		243
Hilcorp Energy I LP / Hilcorp Finance Co
5.00%, 12/01/2024^(e)		561		508	6.38%, 12/15/2021		777		615
5.75%, 10/01/2025^(e)		750		694	6.50%, 11/15/2020		163		131
7.63%, 04/15/2021^(e)		906		922	Ultra Petroleum Corp
					5.75%, 12/15/2018^(e)		850		570
Jones Energy Holdings LLC / Jones Energy
Finance Corp					6.13%, 10/01/2024^(e)		646		362
6.75%, 04/01/2022		379		304	Unit Corp
Jupiter Resources Inc					6.63%, 05/15/2021		1,510		1,208
8.50%, 10/01/2022^(e)		535		278	W&T Offshore Inc
Linn Energy LLC / Linn Energy Finance					8.50%, 06/15/2019		424		191
Corp					Whiting Petroleum Corp
6.50%, 09/15/2021		522		115	5.00%, 03/15/2019		1,655		1,572
7.75%, 02/01/2021		2,601		598	6.25%, 04/01/2023		655		609
8.63%, 04/15/2020		1,330		346	WPX Energy Inc
MEG Energy Corp					5.25%, 09/15/2024		1,679		1,394
6.50%, 03/15/2021^(e)		165		145	6.00%, 01/15/2022		2,769		2,437
7.00%, 03/31/2024^(e)		519		449			$		47,670
Memorial Resource Development Corp					Oil & Gas Services - 0.32%
5.88%, 07/01/2022		555		523	Basic Energy Services Inc
Newfield Exploration Co					7.75%, 10/15/2022		462		171
5.38%, 01/01/2026		300		285	Exterran Partners LP / EXLP Finance Corp
5.63%, 07/01/2024		819		811	6.00%, 10/01/2022		370		313


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Oil & Gas Services (continued)					Pharmaceuticals (continued)
PHI Inc					Valeant Pharmaceuticals International
5.25%, 03/15/2019	$	419	$	371	Inc (continued)
Pioneer Energy Services Corp					6.13%, 04/15/2025^(e)	$	4,290	$	3,609
6.13%, 03/15/2022		658		378	6.75%, 08/15/2018^(e)		1,574		1,518
Sea Trucks Group Ltd					7.50%, 07/15/2021^(e)		473		432
9.00%, 03/26/2018^(e)		700		454			$		21,436
Trinidad Drilling Ltd
7.88%, 01/15/2019^(e)		435		417	Pipelines - 4.02%
Western Refining Logistics LP / WNRL					Crestwood Midstream Partners LP /
Finance Corp					Crestwood Midstream Finance Corp
7.50%, 02/15/2023		661		674	6.13%, 03/01/2022		1,000		860
					6.25%, 04/01/2023^(e)		1,580		1,343
		$		2,778
					DCP Midstream LLC
Packaging & Containers - 1.62%					4.75%, 09/30/2021^(e)		375		332
Ardagh Packaging Finance PLC					5.35%, 03/15/2020^(e)		300		279
9.13%, 10/15/2020^(e)		241		253	8.13%, 08/16/2030		330		328
Ardagh Packaging Finance PLC / Ardagh					DCP Midstream Operating LP
Holdings USA Inc					2.50%, 12/01/2017		555		517
7.00%, 11/15/2020^(e)		137		137	5.60%, 04/01/2044		705		547
9.13%, 10/15/2020^(e)		397		416	Energy Transfer Equity LP
Ball Corp					5.88%, 01/15/2024		2,110		2,044
5.00%, 03/15/2022		575		594	7.50%, 10/15/2020		990		1,064
5.25%, 07/01/2025		388		394	Genesis Energy LP / Genesis Energy Finance
Berry Plastics Corp					Corp
5.13%, 07/15/2023		1,050		1,040	5.63%, 06/15/2024		625		552
Beverage Packaging Holdings Luxembourg II					5.75%, 02/15/2021		725		678
SA / Beverage Packaging Holdings II					6.75%, 08/01/2022		220		215
5.63%, 12/15/2016^(e)		400		400	Hiland Partners LP / Hiland Partners Finance
6.00%, 06/15/2017^(e)		830		834	Corp
Constar International					5.50%, 05/15/2022^(e)		294		286
0.00%, PIK 0.00%, 12/31/2017^{(a),(b),(c),(f),(h)}		586		97	MarkWest Energy Partners LP / MarkWest
Graphic Packaging International Inc					Energy Finance Corp
4.75%, 04/15/2021		352		361	4.50%, 07/15/2023		1,834		1,719
Novelis Inc					4.88%, 12/01/2024		2,920		2,755
8.75%, 12/15/2020		1,050		1,053	4.88%, 06/01/2025		1,053		985
Owens-Brockway Glass Container Inc					PBF Logistics LP / PBF Logistics Finance
5.00%, 01/15/2022^(e)		840		856	Corp
5.88%, 08/15/2023^(e)		148		157	6.88%, 05/15/2023^(e)		272		253
6.38%, 08/15/2025^(e)		83		88	Regency Energy Partners LP / Regency
Reynolds Group Issuer Inc / Reynolds Group					Energy Finance Corp
Issuer LLC / Reynolds Group Issuer					4.50%, 11/01/2023		250		229
(Luxembourg) S.A.					5.50%, 04/15/2023		1,420		1,377
5.75%, 10/15/2020		1,445		1,503	Rockies Express Pipeline LLC
6.88%, 02/15/2021^(f)		1,045		1,092	5.63%, 04/15/2020^(e)		900		904
8.25%, 02/15/2021		1,530		1,589	6.00%, 01/15/2019^(e)		360		365
9.88%, 08/15/2019		1,171		1,232	6.85%, 07/15/2018^(e)		310		321
Sealed Air Corp					6.88%, 04/15/2040^(e)		830		788
5.50%, 09/15/2025^(e)		1,485		1,567	7.50%, 07/15/2038^(e)		645		626
6.50%, 12/01/2020^(e)		500		559	Rose Rock Midstream LP / Rose Rock
		$		14,222	Finance Corp
					5.63%, 07/15/2022		422		359
Pharmaceuticals - 2.45%					5.63%, 11/15/2023^(e)		1,041		885
Endo Finance LLC / Endo Finco Inc
5.38%, 01/15/2023^(e)		2,500		2,452	Sabine Pass Liquefaction LLC
					5.63%, 02/01/2021^(f)		210		208
7.00%, 12/15/2020^(e)		207		214
					5.63%, 04/15/2023		1,060		1,032
Endo Ltd / Endo Finance LLC / Endo Finco					5.63%, 03/01/2025^(e)		4,597		4,407
Inc					5.75%, 05/15/2024		2,525		2,436
6.00%, 07/15/2023^(e)		1,895		1,895
6.00%, 02/01/2025^(e)		425		422	SemGroup Corp
					7.50%, 06/15/2021		484		460
Grifols Worldwide Operations Ltd					Targa Resources Partners LP / Targa
5.25%, 04/01/2022		200		207	Resources Partners Finance Corp
Quintiles Transnational Corp					4.13%, 11/15/2019		935		870
4.88%, 05/15/2023^(e)		200		206
					4.25%, 11/15/2023		380		333
Valeant Pharmaceuticals International					5.00%, 01/15/2018^(e)		300		296
6.38%, 10/15/2020^(e)		3,300		2,953
6.75%, 08/15/2021^(e)		338		301	5.25%, 05/01/2023		850		791
7.00%, 10/01/2020^(e)		495		458	6.38%, 08/01/2022		600		582
7.25%, 07/15/2022^(e)		330		294	Tesoro Logistics LP / Tesoro Logistics
					Finance Corp
Valeant Pharmaceuticals International Inc					6.13%, 10/15/2021		775		806
5.38%, 03/15/2020^(e)		1,070		931
					6.25%, 10/15/2022^(e)		1,478		1,537
5.50%, 03/01/2023^(e)		2,035		1,710
5.63%, 12/01/2021^(e)		359		311	Williams Partners LP / ACMP Finance Corp
5.88%, 05/15/2023^(e)		4,185		3,523	6.13%, 07/15/2022		885		906
							$		35,275


Schedule of Investments
High Yield Fund I
October 31, 2015



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

	Real Estate - 0.12%						Retail (continued)
	Kennedy-Wilson Inc						New Albertsons Inc (continued)
	5.88%, 04/01/2024		$	229	$	227	8.00%, 05/01/2031	$	417	$	411
	Realogy Group LLC						8.70%, 05/01/2030		95		97
	7.63%, 01/15/2020^(e)			765		804	Party City Holdings Inc
				$		1,031	6.13%, 08/15/2023^(e)		270		278
							QVC Inc
	REITS- 1.58	%					5.13%, 07/02/2022		665		675
	Communications Sales & Leasing Inc / CSL						5.45%, 08/15/2034		555		495
	Capital LLC
	6.00%, 04/15/2023^(e)			117		114	Radio Systems Corp
							8.38%, 11/01/2019^(e)		589		625
	8.25%, 10/15/2023			1,340		1,239	Real Mex Restaurants Inc
	Crown Castle International Corp						7.00%, PIK 3.62%, 03/21/2016^(b),(c),(h)		163		135
	4.88%, 04/15/2022			1,719		1,820	Rite Aid Corp
	5.25%, 01/15/2023			606		652	6.13%, 04/01/2023^(e)		2,572		2,772
	Equinix Inc						6.75%, 06/15/2021		1,495		1,605
	5.38%, 01/01/2022			404		422	9.25%, 03/15/2020		1,130		1,213
	5.38%, 04/01/2023			200		208	Serta Simmons Bedding LLC
	5.75%, 01/01/2025			282		294	8.13%, 10/01/2020^(e)		800		848
	ESH Hospitality Inc
	5.25%, 05/01/2025^(e)			335		336	Suburban Propane Partners LP/Suburban
							Energy Finance Corp
	Iron Mountain Inc						5.75%, 03/01/2025		200		192
	5.75%, 08/15/2024			3,415		3,432	7.38%, 08/01/2021		797		837
	6.00%, 10/01/2020^(e)			608		644
							Tops Holding LLC / Tops Markets II Corp
	MPT Operating Partnership LP / MPT Finance						8.00%, 06/15/2022^(e)		480		497
	Corp						Yum! Brands Inc
	5.50%, 05/01/2024			1,980		2,020	3.75%, 11/01/2021		200		189
	Omega Healthcare Investors Inc								$		26,555
	5.88%, 03/15/2024			1,310		1,367
	RHP Hotel Properties LP / RHP Finance						Semiconductors - 0.88%
	Corp						Advanced Micro Devices Inc
	5.00%, 04/15/2023			270		279	6.75%, 03/01/2019		503		387
	Sabra Health Care LP / Sabra Capital Corp						7.00%, 07/01/2024		899		629
	5.50%, 02/01/2021			1,005		1,050	7.50%, 08/15/2022		75		55
				$		13,877	Amkor Technology Inc
							6.38%, 10/01/2022		1,350		1,311
	Retail - 3.03%						Freescale Semiconductor Inc
	1011778 BC ULC / New Red Finance Inc						6.00%, 01/15/2022^(e)		920		980
	4.63%, 01/15/2022^(e)			180		183
	6.00%, 04/01/2022^(e)			705		738	Micron Technology Inc
							5.25%, 08/01/2023^(e)		207		202
	AmeriGas Finance LLC / AmeriGas Finance						5.25%, 01/15/2024^(e)		320		307
	Corp						5.50%, 02/01/2025		387		369
	6.75%, 05/20/2020			430		446	5.63%, 01/15/2026^(e)		280		263
	7.00%, 05/20/2022			1,573		1,659	NXP BV / NXP Funding LLC
	Caleres Inc						4.13%, 06/15/2020^(e)		392		400
	6.25%, 08/15/2023^(e)			310		313
							4.63%, 06/15/2022^(e)		1,032		1,053
	Claire's Stores Inc						5.75%, 02/15/2021^(e)		297		310
	6.13%, 03/15/2020^(e)			728		539
							5.75%, 03/15/2023^(e)		232		244
	8.88%, 03/15/2019			2,463		985
	9.00%, 03/15/2019^(e)			1,527		1,248	Sensata Technologies BV
							5.00%, 10/01/2025^(e)		496		484
	CVS Health Corp						5.63%, 11/01/2024^(e)		696		708
	4.75%, 12/01/2022^(e)			250		272
									$		7,702
	Dollar Tree Inc
	5.75%, 03/01/2023^(e)			1,440		1,517	Software - 3.29%
	Ferrellgas LP / Ferrellgas Finance Corp						Activision Blizzard Inc
	6.75%, 01/15/2022			2,155		1,999	5.63%, 09/15/2021^(e)		2,139		2,263
	6.75%, 06/15/2023^(e)			566		522	Audatex North America Inc
	Guitar Center Inc						6.00%, 06/15/2021^(e)		617		621
	6.50%, 04/15/2019^(e)			611		572	6.13%, 11/01/2023^(e)		212		213
	JC Penney Corp Inc						Emdeon Inc
	8.13%, 10/01/2019			241		240	6.00%, 02/15/2021^(e)		445		437
	Jo-Ann Stores LLC						First Data Corp
	8.13%, 03/15/2019^(e)			225		205	5.38%, 08/15/2023^(e)		440		448
	L Brands Inc						6.75%, 11/01/2020^(e)		394		415
	5.63%, 10/15/2023			1,885		2,059	7.00%, 12/01/2023^(e),(g)		3,110		3,164
	Landry's Inc						8.25%, 01/15/2021^(e)		1,073		1,125
	9.38%, 05/01/2020^(e)			450		483	11.75%, 08/15/2021		1,412		1,610
	Nebraska Book Holdings Inc						12.63%, 01/15/2021		6,405		7,342
	15.00%, 06/30/2016 ^(e)			328		325	10.63%, 06/15/2021		1,069		1,193
	Neiman Marcus Group LTD LLC						11.25%, 01/15/2021		767		849
	8.00%, 10/15/2021^(e)			800		831	IMS Health Inc
	New Albertsons Inc						6.00%, 11/01/2020^(e)		401		415
	6.63%, 06/01/2028			325		289
	7.75%, 06/15/2026			265		261


Schedule of Investments
High Yield Fund I
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Software (continued)					Telecommunications (continued)
Infor Software Parent LLC / Infor Software					Nokia OYJ
Parent Inc					6.63%, 05/15/2039	$	216	$	226
7.13%, PIK 7.88%, 05/01/2021^(e),(h)	$	1,444	$	1,250	Plantronics Inc
Infor US Inc					5.50%, 05/31/2023^(e)		295		300
5.75%, 08/15/2020^(e)		116		118	Qwest Capital Funding Inc
6.50%, 05/15/2022^(e)		2,162		2,049	6.88%, 07/15/2028		159		138
Italics Merger Sub Inc					7.75%, 02/15/2031		780		732
7.13%, 07/15/2023^(e)		464		460	Qwest Corp
MSCI Inc					6.88%, 09/15/2033		745		739
5.25%, 11/15/2024^(e)		1,438		1,513	7.25%, 09/15/2025		310		333
5.75%, 08/15/2025^(e)		1,275		1,345	SBA Telecommunications Inc
Nuance Communications Inc					5.75%, 07/15/2020		580		605
5.38%, 08/15/2020^(e)		1,195		1,219	SoftBank Group Corp
Open Text Corp					4.50%, 04/15/2020^(e)		988		979
5.63%, 01/15/2023^(e)		435		439	Sprint Capital Corp
SS&C Technologies Holdings Inc					6.88%, 11/15/2028		2,795		2,320
5.88%, 07/15/2023^(e)		300		315	6.90%, 05/01/2019		209		201
		$		28,803	8.75%, 03/15/2032		3,560		3,204
					Sprint Communications Inc
Telecommunications - 10.03%					6.00%, 11/15/2022^(b)		1,153		985
Alcatel-Lucent USA Inc					7.00%, 03/01/2020^(e)		1,334		1,401
6.45%, 03/15/2029		269		284	7.00%, 08/15/2020		1,570		1,456
Avaya Inc					9.00%, 11/15/2018^(e)		1,271		1,397
7.00%, 04/01/2019^(e)		1,344		1,092
10.50%, 03/01/2021 ^(e)		924		358	9.13%, 03/01/2017		185		192
					11.50%, 11/15/2021		374		393
CenturyLink Inc					Sprint Corp
5.63%, 04/01/2025		621		557	7.13%, 06/15/2024		3,083		2,707
6.45%, 06/15/2021		1,835		1,849	7.25%, 09/15/2021		1,544		1,419
6.75%, 12/01/2023		895		888	7.63%, 02/15/2025		347		308
7.60%, 09/15/2039		295		252	7.88%, 09/15/2023		3,643		3,369
Cincinnati Bell Inc					Syniverse Holdings Inc
8.38%, 10/15/2020		986		1,028	9.13%, 01/15/2019		1,600		1,340
CommScope Inc
5.00%, 06/15/2021^(e)		160		161	Telecom Italia Capital SA
5.50%, 06/15/2024^(e)		840		832	6.00%, 09/30/2034		1,165		1,095
					Telecom Italia SpA
CommScope Technologies Finance LLC					5.30%, 05/30/2024^(e)		455		457
6.00%, 06/15/2025^(e)		1,165		1,182
					T-Mobile USA Inc
Consolidated Communications Inc					6.00%, 03/01/2023		2,227		2,221
6.50%, 10/01/2022		569		503	6.13%, 01/15/2022		1,525		1,552
Embarq Corp					6.25%, 04/01/2021		675		697
8.00%, 06/01/2036		3,930		4,134	6.38%, 03/01/2025		1,132		1,135
Frontier Communications Corp					6.50%, 01/15/2024		622		631
8.50%, 04/15/2020		1,085		1,118	6.54%, 04/28/2020		1,160		1,189
8.75%, 04/15/2022		404		389	6.63%, 11/15/2020		275		283
8.88%, 09/15/2020^(e)		421		437
					6.63%, 04/28/2021		1,501		1,554
9.00%, 08/15/2031		2,233		2,020	6.63%, 04/01/2023		521		532
9.25%, 07/01/2021		513		521	6.73%, 04/28/2022		1,703		1,758
11.00%, 09/15/2025 ^(e)		2,057		2,156
10.50%, 09/15/2022 ^(e)		598		620	6.84%, 04/28/2023		936		967
					Virgin Media Finance PLC
Goodman Networks Inc					5.75%, 01/15/2025^(e)		226		222
12.13%, 07/01/2018		950		332	6.00%, 10/15/2024^(e)		1,500		1,512
Hughes Satellite Systems Corp					Virgin Media Secured Finance PLC
6.50%, 06/15/2019		943		1,038	5.25%, 01/15/2026^(e)		360		360
Inmarsat Finance PLC					5.38%, 04/15/2021^(e)		1,125		1,182
4.88%, 05/15/2022^(e)		1,340		1,330
					West Corp
Intelsat Jackson Holdings SA					5.38%, 07/15/2022^(e)		515		491
5.50%, 08/01/2023		1,290		1,064	Wind Acquisition Finance SA
6.63%, 12/15/2022		1,824		1,441	4.75%, 07/15/2020^(e)		2,905		2,956
7.25%, 04/01/2019		521		488	7.38%, 04/23/2021^(e)		1,754		1,767
7.25%, 10/15/2020		1,480		1,350	Windstream Services LLC
7.50%, 04/01/2021		394		356	6.38%, 08/01/2023		340		269
Intelsat Luxembourg SA					7.50%, 06/01/2022		2,473		2,056
7.75%, 06/01/2021		2,927		1,726	7.50%, 04/01/2023		965		806
8.13%, 06/01/2023		1,085		643	7.75%, 10/01/2021		1,020		877
Level 3 Communications Inc							$		87,895
5.75%, 12/01/2022		636		652
Level 3 Financing Inc					Transportation - 0.49%
5.13%, 05/01/2023^(e)		132		133	Bluewater Holding BV
5.38%, 01/15/2024^(e),(g)		885		896	10.00%, 12/10/2019 ^(e)		1,300		845
5.38%, 05/01/2025^(e)		1,353		1,357	Martin Midstream Partners LP / Martin
6.13%, 01/15/2021		250		263	Midstream Finance Corp
7.00%, 06/01/2020		792		840	7.25%, 02/15/2021		1,043		983
8.63%, 07/15/2020		2,170		2,292


Schedule of Investments
High Yield Fund I
October 31, 2015



			Principal			SENIOR FLOATING RATE INTERESTS			Principal
BONDS (continued)			Amount (000's) Value (000's)			(continued)			Amount (000's) Value (000's)

Transportation (continued)						Commercial Services - 0.08%
Navios Maritime Acquisition Corp / Navios						Harland Clarke Holdings Corp, Term Loan
Acquisition Finance US Inc						B2
8.13%, 11/15/2021^(e)		$	189	$	181	5.58%, 06/30/2017^(f)		$	340	$	338
Navios Maritime Holdings Inc / Navios						5.58%, 06/30/2017^(f)			20		20
Maritime Finance II US Inc						Pharmaceutical Product Development LLC,
7.38%, 01/15/2022^(e)			900		707	Term Loan B
8.13%, 02/15/2019			175		128	4.25%, 08/05/2022^(f)			319		315
Navios South American Logistics Inc / Navios									$		673
Logistics Finance US Inc
7.25%, 05/01/2022^(e)			594		500	Computers - 0.18%
						Presidio Inc, Term Loan B
Ultrapetrol Bahamas Ltd						5.25%, 02/02/2022^(f)			787		781
8.88%, 06/15/2021			1,514		961
						Riverbed Technology Inc, Term Loan B
			$		4,305	6.00%, 02/25/2022^(f)			572		572
TOTAL BONDS		$	776,613			6.00%, 02/25/2022^(f)			216		216

			Principal						$		1,569
CONVERTIBLE BONDS - 0.10%			Amount (000's) Value (000's)

						Consumer Products - 0.09%
Electric - 0.10%						Dell International LLC, Term Loan B2
NRG Yield Inc						4.00%, 04/29/2020^(f)			452		452
3.25%, 06/01/2020^(e)			250		221
						Spectrum Brands Inc, Term Loan
Upstate New York Power Producers Inc						3.75%, 06/16/2022^(f)			368		369
20.00%, 06/15/2017 ^(b),(c),(e)			323		639
									$		821
			$		860
						Distribution & Wholesale - 0.05%

Retail - 0.00%						HD Supply Inc, Term Loan
Real Mex Restaurants Inc						0.00%, 08/06/2021^(f),(i)			435		433
1.12%, PIK 0.00%, 03/21/2018^(b),(c),(h)			82		—

TOTAL CONVERTIBLE BONDS			$		860	Diversified Financial Services - 0.08%
SENIOR FLOATING RATE INTERESTS -			Principal			Walter Investment Management Corp, Term
6.11	%		Amount (000's) Value (000's)			Loan
						4.75%, 12/11/2020^(f)			772		702
Advertising - 0.29%
Acosta Inc, Term Loan B
4.25%, 09/26/2021^(f)		$	239	$	233	Electric - 0.34%
Advantage Sales & Marketing Inc, Term						Texas Competitive Electric Holdings Co LLC,
Loan						Term Loan EXT
7.50%, 07/21/2022^(f)			1,799		1,654	4.68%, 10/10/2017^(f)			8,239		2,782
Advantage Sales & Marketing Inc, Term Loan						Texas Competitive Electric Holdings Co LLC,
B						Term Loan NONEXT
4.25%, 07/21/2021^(f)			238		232	4.68%, 10/10/2016^(f)			510		163
Vertis Inc, Term Loan EXIT									$		2,945
0.00%, 12/31/2015^{(a),(b),(c),(f)}			1,359		1

Visant Corp, Term Loan						Entertainment - 0.47%
7.00%, 08/13/2021^(f)			419		417	Delta 2 Lux Sarl, Term Loan B
						7.75%, 07/29/2022^(f)			600		571
			$		2,537	Delta 2 Lux Sarl, Term Loan B3
Aerospace & Defense - 0.12%						0.00%, 07/30/2021^(f),(i)			200		196
TransDigm Inc, Term Loan D						Eldorado Resorts Inc, Term Loan B
3.75%, 05/21/2021^(f)			239		235	4.25%, 07/15/2022^(f)			429		428
TransDigm Inc, Term Loan E						Graton Economic Development Authority,
3.50%, 05/13/2022^(f)			880		861	Term Loan
			$		1,096	4.75%, 08/06/2022^(f)			219		218
						Mohegan Tribal Gaming Authority, Term
Automobile Manufacturers - 0.17%						Loan B
FCA US LLC, Term Loan B						5.50%, 11/19/2019^(f)			1,860		1,838
3.25%, 12/31/2018^(f)			580		578

3.50%, 05/24/2017^(f)			730		729	Scientific Games International Inc, Term Loan
						B1
3.50%, 05/24/2017^(f)			227		226	6.00%, 05/22/2020^(f)			444		434
			$		1,533	Shingle Springs Tribal Gaming Authority,
						Term Loan B
Automobile Parts & Equipment - 0.05%						6.25%, 08/22/2019^(f)			410		410
Remy International Inc, Term Loan B
4.25%, 02/28/2020^(f)			438		437				$		4,095
						Food- 0.07	%
						Dole Food Co Inc, Term Loan B
Biotechnology - 0.06%						4.50%, 10/25/2018^(f)			95		94
Concordia Healthcare Corp, Term Loan
0.00%, 10/20/2021^(f),(i)			550		528	4.50%, 12/01/2018^(f)			17		17
						4.50%, 12/01/2018^(f)			83		83
						4.50%, 12/01/2018^(f)			95		94
Building Materials - 0.06%						4.50%, 12/01/2018^(f)			95		94
Stardust Finance Holdings Inc, Term Loan B						4.50%, 12/01/2018^(f)			95		95
6.50%, 03/14/2022^(f)			556		548	4.50%, 12/01/2018^(f)			95		95


Schedule of Investments
High Yield Fund I
October 31, 2015



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's) Value (000's)			(continued)		Amount (000's) Value (000's)

	Food (continued)						Oil & Gas - 0.35%
	Dole Food Co Inc, Term Loan B (continued)						Alon USA Partners LP, Term Loan B
	4.50%, 12/01/2018^(f)		$	83	$	83	9.25%, 11/13/2018^(f)	$	140	$	140
				$		655	EXCO Resources Inc, Term Loan
							13.50%, 10/21/2018 ^(f)		2,331		1,806
	Food Service - 0.17%						Fieldwood Energy LLC, Term Loan
	Aramark Services Inc, Term Loan F						8.38%, 09/30/2020^(f)		420		152
	3.25%, 02/21/2021^(f)			1,491		1,487
							MEG Energy Corp, Term Loan B
							3.75%, 03/31/2020^(f)		476		446
	Healthcare - Products - 0.05%						Sabine Oil & Gas Corp, Term Loan B
	Alere Inc, Term Loan B						0.00%, 01/18/2018^(a),(f)		667		68
	4.25%, 06/10/2022^(f)			219		220	Shelf Drilling Midco Ltd, PIK Term Loan B
	DJO Finance LLC, Term Loan B						10.00%, PIK 0.75%, 10/08/2018 ^(f),(h)		460		281
	4.25%, 06/24/2020^(f)			241		239	W&T Offshore Inc, Term Loan B
				$		459	9.00%, 05/05/2020^(f)		200		175
									$		3,068
	Healthcare - Services - 0.10%
	inVentiv Health Inc, Term Loan B4						Oil & Gas Services - 0.04%
	7.75%, 05/15/2018^(f)			867		862	Navios Maritime Midstream Partners LP,
							Term Loan B
							5.50%, 06/18/2020^(f)		190		188
	Holding Companies - Diversified - 0.03%						Stallion Oilfield Holdings Inc, Term Loan
	Twin River Management Group Inc, Term						8.00%, 06/11/2018^(f)		267		170
	Loan B
	5.25%, 07/10/2020^(f)			239		239			$		358
							Packaging & Containers - 0.13%
							Berry Plastics Group Inc, Term Loan E
	Internet - 0.03%						3.75%, 12/18/2020^(f)		240		240
	Go Daddy Operating Co LLC, Term Loan B
	4.25%, 05/05/2021^(f)			251		252	Berry Plastics Group Inc, Term Loan F
							4.00%, 09/16/2022^(f)		723		723
							4.25%, 09/16/2022^(f)		175		175
	Lodging - 0.18%								$		1,138
	ROC Finance LLC, Term Loan B
	5.00%, 03/27/2019^(f)			682		642	Real Estate - 0.18%
							Realogy Group LLC, Term Loan B
	Station Casinos LLC, Term Loan B						3.75%, 03/05/2020^(f)		1,583		1,582
	4.25%, 02/25/2018^(f)			473		473
	4.25%, 02/25/2020^(f)			468		468
				$		1,583	Retail - 0.78%
							J Crew Group Inc, Term Loan B
	Media- 0.97	%					4.00%, 02/26/2021^(f)		359		263
	Altice Financing SA, Delay-Draw Term Loan						4.00%, 02/26/2021^(f)		297		218
	DD						4.00%, 02/26/2021^(f)		355		261
	5.50%, 07/15/2019^(f)			688		688
							4.00%, 02/26/2021^(f)		354		259
	CCO Safari III LLC, Term Loan I
	3.50%, 01/23/2023^(f)			965		964	JC Penney Corp Inc, Term Loan
							6.00%, 05/21/2018^(f)		1,481		1,476
	CSC Holdings LLC, Term Loan
	0.00%, 10/09/2022^(f),(i)			818		820	PetSmart Inc, Term Loan B
							4.25%, 03/10/2022^(f)		1,453		1,452

	iHeartCommunications Inc, Term Loan D-						Rite Aid Corp, Term Loan 2
	EXT						4.88%, 06/11/2021^(f)		1,000		1,001
	6.94%, 01/23/2019^(f)			3,572		2,986

	Tribune Media Co, Term Loan B
	3.75%, 12/27/2020^(f)			334		333	Sears Roebuck Acceptance Corp, Term Loan B
							5.50%, 06/30/2018^(f)		1,154		1,118
	3.75%, 12/27/2020^(f)			512		510
	3.75%, 12/28/2020^(f)			1		1	Serta Simmons Bedding LLC, Term Loan B
							4.25%, 09/19/2019^(f)		353		353
	Univision Communications Inc, Term Loan						4.25%, 10/01/2019^(f)		148		148
	C3						4.25%, 10/01/2019^(f)		290		290
	4.00%, 03/01/2020^(f)			921		915
	4.00%, 03/01/2020^(f)			375		372			$		6,839
	Univision Communications Inc, Term Loan						Semiconductors - 0.29%
	C4						Avago Technologies Cayman Ltd, Term Loan
	4.00%, 03/01/2020^(f)			119		119	B
	4.00%, 03/01/2020^(f)			794		789	3.75%, 04/16/2019^(f)		1,910		1,910
				$		8,497	Freescale Semiconductor Inc, Term Loan B4
							4.25%, 02/13/2020^(f)		605		605
	Mining - 0.14%
									$		2,515
	Coeur Mining Inc, Term Loan B
	9.00%, 06/15/2020^(b),(f)			360		351	Software - 0.22%
	9.00%, 06/23/2020^(f)			119		116	Evergreen Skills Lux Sarl, Term Loan
	FMG Resources August 2006 Pty Ltd, Term						3.75%, 04/08/2021^(f)		190		186
	Loan B						3.75%, 04/08/2021^(f)		391		383
	0.00%, 06/30/2019^(f),(i)			373		314	First Data Corp, Term Loan B
	3.75%, 06/30/2019^(f)			557		470	3.95%, 06/24/2022^(f)		810		808
				$		1,251	First Data Corp, Term Loan B1
							3.70%, 09/24/2018^(f)		574		570
									$		1,947


COMMON STOCKS - 0.00%		Shares Held		Value(000			's)			Principal
								BONDS (continued)	Amount (000's) Value (000's)
Computers - 0.00%
SONICblue Inc ^(a),(b)			9,825,000		$	—		Banks (continued)
								Goldman Sachs Group Inc/The	(continued)
								5.35%, 01/15/2016	$	2,000	$	2,019
Diversified Financial Services - 0.00%								ING Bank NV
(a),(b),(c)
Adelphia Recovery Trust			658,740			5		3.75%, 03/07/2017^(e)		5,000		5,153
								4.00%, 03/15/2016^(e)		7,000		7,088
Transportation - 0.00%								JPMorgan Chase & Co
Trailer Bridge Inc ^(a),(b)			7,120			—		3.25%, 09/23/2022		5,000		5,049
								3.63%, 05/13/2024		15,000		15,161
TOTAL COMMON STOCKS				$		5		3.90%, 07/15/2025		5,000		5,120
								7.90%, 04/29/2049^(d),(f)		7,000		7,273
INVESTMENT COMPANIES - 4.15%		Shares Held		Value(000			's)
								JPMorgan Chase Bank NA
Publicly Traded Investment Fund - 4.15%								0.74%, 06/14/2017^(d)		5,000		4,989
Goldman Sachs Financial Square Funds -			130,754,469			130,754		Morgan Stanley
Government Fund								2.65%, 01/27/2020		5,000		5,033
								3.80%, 04/29/2016		4,000		4,061
TOTAL INVESTMENT COMPANIES				$		130,754		3.95%, 04/23/2027		10,000		9,727
			Principal					4.00%, 07/23/2025		5,000		5,142
BONDS- 61.24	%	Amount (000's)		Value(000			's)	4.88%, 11/01/2022		2,000		2,157
								5.50%, 07/28/2021		5,000		5,660


Airlines - 0.30%								PNC Bank NA
								2.95%, 01/30/2023		5,000		4,913
United Airlines 2013-1 Class A Pass Through
Trust								2.95%, 02/23/2025		10,000		9,722
4.30%, 02/15/2027		$	9,168		$	9,488
								PNC Financial Services Group Inc/The
								6.75%, 07/29/2049^(d),(f)		18,000		19,399
Automobile Floor Plan Asset Backed Securities - 3.79%								SunTrust Bank/Atlanta GA
Ally Master Owner Trust								2.75%, 05/01/2023		15,000		14,453
0.65%, 04/15/2018^(d)			13,000			12,994		US Bancorp
0.67%, 01/15/2019^(d)			5,000			4,991		1.65%, 05/15/2017		9,000		9,077
BMW Floorplan Master Owner Trust								2.95%, 07/15/2022		5,000		4,997
0.70%, 07/15/2020^(d),(e)			13,500			13,430		3.00%, 03/15/2022		2,000		2,036
CNH Wholesale Master Note Trust								3.60%, 09/11/2024		9,500		9,698
0.80%, 08/15/2019^(d),(e)			13,000			12,981		4.13%, 05/24/2021		3,000		3,263
Ford Credit Floorplan Master Owner Trust A								US Bank NA/Cincinnati OH
0.58%, 01/15/2018^(d)			14,000			14,003		2.80%, 01/27/2025		5,000		4,868
0.60%, 02/15/2019^(d)			6,000			5,993		Wells Fargo & Co
Mercedes-Benz Master Owner Trust 2015-B								7.98%, 12/31/2049^(d),(f)		15,000		15,975
0.58%, 04/15/2020^(d),(e)			15,000			14,904				$		278,762
Nissan Master Owner Trust Receivables
0.50%, 02/15/2018^(d)			14,000			13,995		Beverages - 1.18%
0.60%, 01/15/2020^(d)			15,000			15,007		Anheuser-Busch InBev Worldwide Inc
Volkswagen Credit Auto Master Trust								2.50%, 07/15/2022		9,000		8,554
0.54%, 07/22/2019^(d),(e)			11,000			10,864		7.75%, 01/15/2019		10,000		11,679
				$		119,162		Innovation Ventures LLC / Innovation
								Ventures Finance Corp
Automobile Manufacturers - 1.57%								9.50%, 08/15/2019^(e)		16,264		16,996
American Honda Finance Corp										$		37,229
0.82%, 10/07/2016^(d)			4,500			4,513
1.60%, 02/16/2018^(e)			10,000			10,002		Biotechnology - 1.64%
3.80%, 09/20/2021^(e)			10,000			10,527		Amgen Inc
Ford Motor Credit Co LLC								3.63%, 05/15/2022		4,500		4,620
3.98%, 06/15/2016			20,000			20,309		3.88%, 11/15/2021		13,000		13,729
General Motors Co								Gilead Sciences Inc
4.88%, 10/02/2023			4,000			4,196		3.25%, 09/01/2022		10,000		10,141
				$		49,547		3.50%, 02/01/2025		4,750		4,797
								3.65%, 03/01/2026		3,000		3,033
Banks- 8.86	%							4.40%, 12/01/2021		14,000		15,236
Bank of America Corp										$		51,556
3.88%, 08/01/2025			7,000			7,122
5.42%, 03/15/2017			5,000			5,246		Chemicals - 1.16%
6.50%, 07/15/2018			2,000			2,216		Airgas Inc
6.75%, 06/01/2028			2,000			2,449		1.65%, 02/15/2018		13,500		13,418
8.00%, 07/29/2049^(d),(f)			4,000			4,170		2.38%, 02/15/2020		7,000		6,904
8.13%, 12/29/2049^(d),(f)			10,000			10,413		3.65%, 07/15/2024		5,000		4,944
Bank of New York Mellon Corp/The								Axiall Corp
2.60%, 08/17/2020			9,500			9,651		4.88%, 05/15/2023		2,500		2,376
Citigroup Inc								Eagle Spinco Inc
3.88%, 03/26/2025			20,000			19,515		4.63%, 02/15/2021		9,250		9,007
4.45%, 09/29/2027			8,000			7,993				$		36,649
4.50%, 01/14/2022			4,000			4,326		Commercial Services - 0.68%
Goldman Sachs Group Inc/The								ERAC USA Finance LLC
3.63%, 02/07/2016			5,000			5,039		3.30%, 10/15/2022^(e)		2,000		1,988
3.63%, 01/22/2023			4,000			4,084		4.50%, 08/16/2021^(e)		6,000		6,425
5.25%, 07/27/2021			13,000			14,505		6.38%, 10/15/2017^(e)		4,000		4,348


		Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)

Commercial Services (continued)					Electronics - 0.62%
ERAC USA Finance LLC	(continued)				Corning Inc
7.00%, 10/15/2037^(e)	$	7,000	$	8,606	2.90%, 05/15/2022		$	5,000	$	4,861
		$		21,367	4.25%, 08/15/2020			10,000		10,700
					4.75%, 03/15/2042			4,000		3,899
Computers - 0.40%								$		19,460
Apple Inc
2.40%, 05/03/2023		13,000		12,719	Entertainment - 0.19%
					Greektown Holdings LLC/Greektown
					Mothership Corp
Credit Card Asset Backed Securities - 0.88%					8.88%, 03/15/2019^(e)			1,250		1,269
Cabela's Credit Card Master Note Trust
0.55%, 03/16/2020^(d)		10,253		10,238	Peninsula Gaming LLC / Peninsula Gaming
0.75%, 10/15/2019^(d),(e)		9,500		9,518	Corp
					8.38%, 02/15/2018^(e)			4,500		4,680
0.87%, 07/17/2023^(d)		8,000		8,007
								$		5,949
		$		27,763

Diversified Financial Services - 1.64%
					Environmental Control - 1.69%
GE Capital International Funding Co					ADS Waste Holdings Inc
2.34%, 11/15/2020^(e)		1,659		1,664	8.25%, 10/01/2020			21,000		22,024

General Electric Capital Corp					Republic Services Inc
1.34%, 03/15/2023^(d)		13,000		12,935	3.20%, 03/15/2025			10,000		9,748
					3.55%, 06/01/2022			6,000		6,174
5.30%, 02/11/2021		573		654
					3.80%, 05/15/2018			2,000		2,091

International Lease Finance Corp					5.00%, 03/01/2020			12,000		13,241
8.63%, 01/15/2022		3,000		3,690
8.75%, 03/15/2017^(d)		8,500		9,170				$		53,278
Jefferies Finance LLC / JFIN Co-Issuer Corp					Food- 0.63	%
7.38%, 04/01/2020^(e)		3,750		3,675	Kraft Heinz Foods Co
Jefferies Group LLC					3.50%, 07/15/2022^(e)			5,000		5,096
5.13%, 04/13/2018		5,000		5,257	3.95%, 07/15/2025^(e)			14,500		14,846
5.13%, 01/20/2023		1,500		1,501				$		19,942
6.25%, 01/15/2036		9,000		8,468
8.50%, 07/15/2019		4,000		4,711	Forest Products & Paper - 0.56%
		$		51,725	Plum Creek Timberlands LP
					3.25%, 03/15/2023			5,000		4,837
Electric - 5.93%					4.70%, 03/15/2021			12,000		12,784
Exelon Generation Co LLC								$		17,621
6.20%, 10/01/2017		14,000		14,976
6.25%, 10/01/2039		3,000		3,197	Healthcare - Services - 2.17%
GenOn Americas Generation LLC					HCA Inc
8.50%, 10/01/2021		12,500		9,844	5.88%, 05/01/2023			4,500		4,770
GenOn Energy Inc					7.50%, 02/15/2022			3,000		3,450
9.88%, 10/15/2020		6,500		5,387	7.50%, 11/06/2033			1,700		1,810
LG&E and KU Energy LLC					HealthSouth Corp
3.75%, 11/15/2020		5,000		5,226	5.75%, 11/01/2024			2,000		2,000
					5.75%, 09/15/2025^(e)			1,000		996
4.38%, 10/01/2021		5,000		5,410
Louisville Gas & Electric Co					7.75%, 09/15/2022			4,440		4,618
3.30%, 10/01/2025		3,000		3,058	Roche Holdings Inc
					0.67%, 09/30/2019^(d),(e)			31,000		30,805
Metropolitan Edison Co
3.50%, 03/15/2023^(e)		9,000		8,856	Vantage Oncology LLC / Vantage Oncology
					Finance Co
NiSource Finance Corp					9.50%, 06/15/2017^(e)			22,000		19,800
3.85%, 02/15/2023		2,000		2,066
6.13%, 03/01/2022		5,000		5,802				$		68,249
Oncor Electric Delivery Co LLC					Insurance - 2.89%
2.95%, 04/01/2025		4,000		3,822	Berkshire Hathaway Finance Corp
7.00%, 09/01/2022		17,000		20,658	0.62%, 01/12/2018^(d)			14,500		14,485
PacifiCorp					Berkshire Hathaway Inc
5.25%, 06/15/2035		5,000		5,654	3.00%, 02/11/2023			5,000		5,074
6.25%, 10/15/2037		2,000		2,533	3.75%, 08/15/2021			5,000		5,333
Solar Star Funding LLC
3.95%, 06/30/2035^(e)		7,000		6,999	Fidelity National Financial Inc
					5.50%, 09/01/2022			5,000		5,306
5.38%, 06/30/2035^(e)		15,500		17,462
					6.60%, 05/15/2017			12,000		12,803
Southwestern Electric Power Co					First American Financial Corp
3.55%, 02/15/2022		12,000		12,214	4.30%, 02/01/2023			20,000		19,940
Talen Energy Supply LLC					4.60%, 11/15/2024			5,000		5,095
4.60%, 12/15/2021		11,000		9,441	Prudential Financial Inc
6.50%, 05/01/2018		3,000		3,052	4.50%, 11/16/2021			2,000		2,192
TransAlta Corp					5.38%, 06/21/2020			2,000		2,244
4.50%, 11/15/2022		18,000		17,260	7.38%, 06/15/2019			4,000		4,700
6.65%, 05/15/2018		4,000		4,234	8.88%, 06/15/2068^(d)			12,000		13,688
Tucson Electric Power Co								$		90,860
3.05%, 03/15/2025		2,000		1,917
3.85%, 03/15/2023		14,000		14,150
5.15%, 11/15/2021		3,000		3,337
		$		186,555


		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)

Internet - 0.06%					Oil & Gas (continued)
VeriSign Inc					Whiting Petroleum Corp
5.25%, 04/01/2025	$	1,750	$	1,785	5.75%, 03/15/2021		$	18,000	$	16,718
								$		143,691

Iron & Steel - 1.12%					Oil & Gas Services - 1.36%
Allegheny Technologies Inc					Exterran Partners LP / EXLP Finance Corp
5.95%, 01/15/2021		16,000		14,080	6.00%, 04/01/2021			24,000		20,760
7.37%, 08/15/2023^(d)		7,000		5,950	Weatherford International Ltd/Bermuda
ArcelorMittal					4.50%, 04/15/2022			12,750		9,977
6.25%, 03/01/2021^(d)		16,000		15,110	5.13%, 09/15/2020			14,000		11,988
		$		35,140				$		42,725

Leisure Products & Services - 0.17%					Other Asset Backed Securities - 1.19%
Royal Caribbean Cruises Ltd					Drug Royalty II LP 2
7.25%, 03/15/2018		5,000		5,475	3.48%, 07/15/2023^(d),(e)			14,467		14,659
					PFS Financing Corp
					0.75%, 02/15/2018^(d),(e)			14,000		13,988
Lodging - 0.13%					0.82%, 04/15/2020^(d),(e)			9,000		8,952
Boyd Gaming Corp
6.88%, 05/15/2023		4,000		4,240				$		37,599
					Packaging & Containers - 0.26%
					Sealed Air Corp
					5.50%, 09/15/2025^(e)			2,000		2,110
Media- 2.08%
21st Century Fox America Inc					6.88%, 07/15/2033^(e)			6,000		6,120
4.50%, 02/15/2021		5,000		5,416
6.40%, 12/15/2035		8,000		9,373				$		8,230
Comcast Corp					Pharmaceuticals - 0.90%
2.85%, 01/15/2023		10,000		10,061	AbbVie Inc
3.13%, 07/15/2022		2,000		2,051	2.90%, 11/06/2022			13,750		13,306
5.15%, 03/01/2020		2,000		2,251	Actavis Funding SCS
Historic TW Inc					3.45%, 03/15/2022			5,000		4,968
9.15%, 02/01/2023		5,260		6,914	3.80%, 03/15/2025			10,000		9,909
NBCUniversal Enterprise Inc								$		28,183
1.01%, 04/15/2018^(d),(e)		3,000		3,001
Time Warner Cable Inc					Pipelines - 2.55%
4.00%, 09/01/2021		2,000		2,043	Buckeye Partners LP
4.13%, 02/15/2021		2,000		2,053	4.15%, 07/01/2023			10,000		9,064
5.00%, 02/01/2020		2,000		2,140	4.35%, 10/15/2024			7,500		6,948
6.55%, 05/01/2037		6,000		6,012	Columbia Pipeline Group Inc
6.75%, 06/15/2039		5,500		5,620	4.50%, 06/01/2025^(e)			11,000		10,586
7.30%, 07/01/2038		7,750		8,395	El Paso Natural Gas Co LLC
		$		65,330	7.50%, 11/15/2026			9,500		10,702
					Express Pipeline LLC
Office & Business Equipment - 0.02%					7.39%, 12/31/2019^(e)			3,516		3,686
CDW LLC / CDW Finance Corp					Southeast Supply Header LLC
5.50%, 12/01/2024		500		524	4.25%, 06/15/2024^(e)			14,000		13,527
					Southern Natural Gas Co LLC
Oil & Gas - 4.56%					8.00%, 03/01/2032			4,000		4,296
BG Energy Capital PLC					Tennessee Gas Pipeline Co LLC
2.88%, 10/15/2016^(e)		2,000		2,029	8.38%, 06/15/2032			2,000		2,061
4.00%, 10/15/2021^(e)		11,500		12,168	TransCanada PipeLines Ltd
BP Capital Markets PLC					1.01%, 06/30/2016^(d)			5,000		4,997
2.50%, 11/06/2022		3,000		2,903	6.10%, 06/01/2040			5,000		5,587
3.25%, 05/06/2022		4,000		4,055	7.25%, 08/15/2038			7,000		8,776
4.75%, 03/10/2019		14,000		15,192				$		80,230

Helmerich & Payne International Drilling Co					REITS- 6.22	%
4.65%, 03/15/2025		7,000		7,103	Alexandria Real Estate Equities Inc
Linn Energy LLC / Linn Energy Finance					3.90%, 06/15/2023			4,000		3,981
Corp					4.60%, 04/01/2022			20,500		21,417
6.50%, 05/15/2019		16,000		4,160	BioMed Realty LP
Nabors Industries Inc					3.85%, 04/15/2016			6,000		6,050
5.00%, 09/15/2020		14,000		13,403	4.25%, 07/15/2022			8,000		7,728
5.10%, 09/15/2023		5,000		4,404	6.13%, 04/15/2020			8,000		8,641
Petro-Canada					CubeSmart LP
9.25%, 10/15/2021		8,500		11,200	4.00%, 11/15/2025			5,000		4,979
Phillips 66					4.38%, 12/15/2023			8,000		8,292
4.30%, 04/01/2022		9,000		9,551	4.80%, 07/15/2022			9,000		9,705
Rowan Cos Inc					Duke Realty LP
4.88%, 06/01/2022		8,000		6,432	3.88%, 10/15/2022			3,000		3,019
5.00%, 09/01/2017		14,000		14,108	4.38%, 06/15/2022			4,000		4,137
Tesoro Corp					HCP Inc
5.38%, 10/01/2022		8,750		8,903	2.63%, 02/01/2020			5,000		4,953
W&T Offshore Inc					3.75%, 02/01/2019			5,000		5,197
8.50%, 06/15/2019		25,250		11,362	5.38%, 02/01/2021			3,000		3,304


Schedule of Investments
Income Fund
October 31, 2015



		Principal			SENIOR FLOATING RATE INTERESTS -			Principal
BONDS (continued)		Amount (000's) Value (000's)			0.24	%	Amount (000's) Value (000's)

REITS (continued)					Oil & Gas - 0.21%
Healthcare Realty Trust Inc					Drillships Financing Holding Inc, Term Loan
3.88%, 05/01/2025	$	5,000	$	4,864	B1
5.75%, 01/15/2021		4,000		4,441	6.00%, 03/31/2021^(d)		$	9,639	$	5,523
Hospitality Properties Trust					Drillships Ocean Ventures Inc, Term Loan B
4.50%, 06/15/2023		5,000		4,983	5.50%, 07/16/2021^(d)			1,481		958
4.65%, 03/15/2024		5,000		4,933				$		6,481
5.00%, 08/15/2022		14,000		14,457
Kimco Realty Corp					Transportation - 0.03%
6.88%, 10/01/2019		12,000		13,923	Trailer Bridge Inc, Term Loan
					10.00%, 04/02/2016 ^(b),(c),(d)			1,095		1,095
Omega Healthcare Investors Inc
5.25%, 01/15/2026^(e)		7,500		7,740
Simon Property Group LP					TOTAL SENIOR FLOATING RATE INTERESTS			$		7,576
2.75%, 02/01/2023		7,000		6,849	U.S. GOVERNMENT & GOVERNMENT		Principal
4.38%, 03/01/2021		3,000		3,267	AGENCY OBLIGATIONS - 33.37%		Amount (000's) Value (000's)
10.35%, 04/01/2019		9,000		11,215	Federal Home Loan Mortgage Corporation (FHLMC) -
Ventas Realty LP / Ventas Capital Corp					4.94	%
3.25%, 08/15/2022		8,000		7,786	3.00%, 10/01/2042		$	12,904	$	13,051
4.00%, 04/30/2019		3,000		3,142	3.00%, 10/01/2042			13,762		13,920
Welltower Inc					3.00%, 11/01/2042			13,546		13,702
3.75%, 03/15/2023		3,000		2,959	3.50%, 10/01/2041			7,641		7,959
4.50%, 01/15/2024		5,000		5,194	3.50%, 04/01/2042			10,326		10,765
4.95%, 01/15/2021		3,000		3,248	3.50%, 04/01/2042			9,392		9,796
6.13%, 04/15/2020		2,000		2,272	4.00%, 04/01/2039			6,126		6,624
6.20%, 06/01/2016		3,000		3,080	4.00%, 02/01/2045			14,873		15,816
		$		195,756	4.50%, 08/01/2033			742		803
					4.50%, 08/01/2033			1,680		1,817
Savings & Loans - 0.23%					4.50%, 08/01/2033			1,553		1,686
First Niagara Financial Group Inc					4.50%, 05/01/2039			4,017		4,361
7.25%, 12/15/2021		6,000		7,189	4.50%, 06/01/2039			3,410		3,762
					4.50%, 07/01/2039			8,720		9,540
Software - 1.34%					4.50%, 12/01/2040			9,141		9,912
Oracle Corp					4.50%, 10/01/2041			12,032		13,081
2.50%, 05/15/2022		24,000		23,702	5.00%, 08/01/2035			1,441		1,602
2.95%, 05/15/2025		19,000		18,585	5.00%, 11/01/2035			1,500		1,652
		$		42,287	5.00%, 10/01/2038			2,374		2,563
					5.00%, 08/01/2039			5,640		6,218
Storage & Warehousing - 0.09%					5.50%, 11/01/2017			246		255
Mobile Mini Inc					5.50%, 01/01/2018			52		54
7.88%, 12/01/2020		2,750		2,860	5.50%, 05/01/2031			286		319
					5.50%, 06/01/2035			665		737
					5.50%, 01/01/2036			1,574		1,778
Telecommunications - 0.65%
Qwest Corp					5.50%, 04/01/2036			1,655		1,870
6.75%, 12/01/2021		19,000		20,416	6.00%, 03/01/2031			63		72
					6.00%, 05/01/2032			249		286
					6.00%, 06/01/2038			678		778
Transportation - 0.81%					6.50%, 01/01/2029			68		79
Navios Maritime Holdings Inc / Navios					6.50%, 05/01/2029			125		143
Maritime Finance II US Inc					6.50%, 06/01/2029			58		67
7.38%, 01/15/2022^(e)		14,000		11,008	6.50%, 06/01/2029			123		143
Trailer Bridge Inc					6.50%, 08/01/2029			71		81
0.00%, 11/15/2015^(a),(b),(c)		12,000		—	7.00%, 01/01/2032			60		65
16.50%, 03/31/2017 ^(b),(c),(d)		15,624		14,471				$		155,357
		$		25,479
					Federal National Mortgage Association (FNMA) - 15.00%
Trucking & Leasing - 0.72%					3.00%, 03/01/2042			10,780		10,934
Penske Truck Leasing Co Lp / PTL Finance					3.00%, 03/01/2042			10,474		10,626
Corp					3.00%, 05/01/2042			12,202		12,382
3.75%, 05/11/2017^(e)		22,000		22,612	3.00%, 06/01/2042			11,257		11,422
					3.00%, 06/01/2042			11,224		11,388
TOTAL BONDS		$		1,927,632	3.50%, 12/01/2040			8,198		8,551
		Principal			3.50%, 01/01/2041			6,808		7,102
CONVERTIBLE BONDS - 0.29%		Amount (000's) Value (000's)			3.50%, 01/01/2041			6,561		6,844
					3.50%, 12/01/2041			5,897		6,149
Automobile Parts & Equipment - 0.29%					3.50%, 01/01/2042			8,893		9,304
Meritor Inc					3.50%, 03/01/2042			9,816		10,239
7.88%, 03/01/2026		6,710		9,222	3.50%, 04/01/2042			12,799		13,351
					3.50%, 02/01/2043			15,521		16,247
TOTAL CONVERTIBLE BONDS		$		9,222	3.50%, 06/01/2043			15,305		16,027
					3.50%, 03/01/2045			15,368		16,081
					4.00%, 03/01/2039			4,567		4,864
					4.00%, 08/01/2040			4,456		4,751
					4.00%, 09/01/2040			8,544		9,191
					4.00%, 11/01/2040			3,539		3,774


U.S. GOVERNMENT & GOVERNMENT			Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's) Value (000's)

Federal National Mortgage Association (FNMA) (continued)						U.S. Treasury (continued)
4.00%, 11/01/2040		$	5,292	$	5,637		4.38%, 02/15/2038	$	15,000	$	19,187
4.00%, 10/01/2041			5,436		5,801				$		422,272
4.00%, 10/01/2041			7,271		7,759	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
4.00%, 11/01/2041			15,395		16,433	OBLIGATIONS			$		1,050,262
4.00%, 04/01/2042			10,307		11,005	Total Investments			$		3,125,451
4.00%, 08/01/2043			16,500		17,746	Other Assets in Excess of Liabilities, Net - 0.71%			$		22,192
4.00%, 08/01/2043			14,210		15,215	TOTAL NET ASSETS - 100.00%			$		3,147,643
4.00%, 11/01/2043			14,283		15,291
4.00%, 11/01/2043			16,136		17,431
4.00%, 01/01/2044			15,162		16,232	(a)	Non-Income Producing Security
4.00%, 02/01/2044			16,144		17,367	(b)	Fair value of these investments is determined in good faith by the Manager
4.00%, 09/01/2044			14,386		15,322		under procedures established and periodically reviewed by the Board of
4.50%, 06/01/2039			2,086		2,264		Directors. At the end of the period, the fair value of these securities totaled
4.50%, 08/01/2039			3,072		3,392		$15,571 or 0.49% of net assets.
4.50%, 05/01/2040			4,383		4,793	(c)	Security is Illiquid. At the end of the period, the value of these securities
4.50%, 08/01/2040			15,088		16,393		totaled $15,571 or 0.49% of net assets.
4.50%, 10/01/2040			10,338		11,228	(d)	Variable Rate. Rate shown is in effect at October 31, 2015.
4.50%, 12/01/2040			11,014		12,047	(e)	Security exempt from registration under Rule 144A of the Securities Act of
4.50%, 08/01/2041			13,707		14,890		1933. These securities may be resold in transactions exempt from
4.50%, 10/01/2043			12,335		13,357		registration, normally to qualified institutional buyers. At the end of the
4.50%, 05/01/2044			20,047		21,841		period, the value of these securities totaled $381,164 or 12.11% of net
5.00%, 01/01/2018			196		204		assets.
5.00%, 10/01/2032			171		189	(f)	Perpetual security. Perpetual securities pay an indefinite stream of
5.00%, 08/01/2035			2,916		3,212		interest, but they may be called by the issuer at an earlier date.
5.00%, 04/01/2039			1,470		1,644
5.00%, 12/01/2039			2,030		2,239
5.00%, 04/01/2040			4,606		5,154
5.00%, 06/01/2040			4,001		4,476		Portfolio Summary (unaudited)
5.50%, 03/01/2033			238		266	Sector					Percent
5.50%, 02/01/2035			3,044		3,443	Mortgage Securities					19.96	%
6.00%, 04/01/2032			120		137	Financial					19.84	%
6.50%, 09/01/2028			51		58	Government					13.41	%
6.50%, 11/01/2028			27		31	Energy					8.68	%
6.50%, 05/01/2031			26		30	Consumer, Non-cyclical					7.20	%
6.50%, 05/01/2032			223		263	Utilities					5.93	%
7.00%, 01/01/2030			4		5	Asset Backed Securities					5.86	%
			$		472,022	Exchange Traded Funds					4.15	%
Government National Mortgage Association (GNMA) -						Industrial					4.13	%
0.02	%					Basic Materials					2.84	%
6.00%, 05/20/2032^(d)			440		494	Communications					2.79	%
7.00%, 06/20/2031			95		117	Consumer, Cyclical					2.74	%
			$		611	Technology					1.76	%
						Other Assets in Excess of Liabilities, Net					0.71	%
U.S. Treasury - 13.41%						TOTAL NET ASSETS					100.00	%
0.63%, 12/15/2016			15,000		15,021
0.75%, 10/31/2017			15,000		14,996
0.88%, 02/28/2017			15,000		15,063
1.25%, 10/31/2019			15,000		14,946
1.38%, 11/30/2018			15,000		15,134
1.63%, 04/30/2019			15,000		15,205
1.63%, 07/31/2019			15,000		15,177
1.63%, 06/30/2020			15,000		15,088
1.63%, 11/15/2022			15,000		14,731
1.75%, 05/31/2016			15,000		15,122
1.75%, 05/15/2022			15,000		14,902
1.75%, 05/15/2023			15,000		14,764
2.00%, 11/15/2021			15,000		15,196
2.25%, 11/15/2024			5,000		5,054
2.38%, 05/31/2018			15,000		15,549
2.50%, 05/15/2024			15,000		15,502
2.63%, 11/15/2020			15,000		15,753
2.75%, 11/15/2023			15,000		15,835
2.88%, 05/15/2043			15,000		14,832
3.00%, 11/15/2044			15,000		15,171
3.13%, 05/15/2021			15,000		16,144
3.13%, 08/15/2044			15,000		15,558
3.38%, 05/15/2044			15,000		16,327
3.50%, 02/15/2039			15,000		16,839
3.63%, 02/15/2020			15,000		16,367
3.63%, 02/15/2044			15,000		17,123
3.75%, 11/15/2043			10,000		11,686


INVESTMENT COMPANIES - 2.06%			Shares Held		Value (000's)		Principal
						BONDS (continued)	Amount (000's) Value (000's)
Publicly Traded Investment Fund - 2.06%
BlackRock Liquidity Funds FedFund Portfolio			33,887,950	$	33,888	Other Asset Backed Securities (continued)
						Countrywide Asset-Backed Certificates
TOTAL INVESTMENT COMPANIES			$		33,888	1.32%, 12/25/2032^(a)	$	43	$	40
						Fannie Mae Grantor Trust 2004-T9
			Principal			0.49%, 04/25/2035^(a)		9		9
BONDS- 5.01	%	Amount (000's) Value (000's)
						Fannie Mae REMIC Trust 2003-W16
Commercial Mortgage Backed Securities - 0.02%						0.50%, 11/25/2033^(a)		1		1
CD 2007-CD4 Commercial Mortgage Trust						Long Beach Mortgage Loan Trust 2004-2
0.37%, 12/11/2049^(a),(b)		$	5,298	$	19	0.99%, 06/25/2034^(a)		99		95
Commercial Mortgage Trust 2007-GG9								$		311
0.24%, 03/10/2039^(a),(b)			32,415		94
G-FORCE 2005-RR2 LLC						Sovereign - 4.70%
0.50%, 12/25/2039^(a),(b),(c)			175		168	Bundesrepublik Deutschland Bundesobligation
Ginnie Mae						Inflation Linked Bond
0.73%, 03/16/2047^(a)			590		15	0.75%, 04/15/2018	EUR	3,743		4,255
ML-CFC Commercial Mortgage Trust 2006-						Deutsche Bundesrepublik Inflation Linked
3						Bond
0.73%, 07/12/2046^(a),(b)			12,016		53	1.50%, 04/15/2016		17		19
			$		349	Italy Buoni Poliennali Del Tesoro
						1.25%, 09/15/2032^(b)		7,147		8,255
Home Equity Asset Backed Securities - 0.00%						2.10%, 09/15/2016		43		48
New Century Home Equity Loan Trust 2005-						2.35%, 09/15/2024^(b)		14,557		18,623
1						2.55%, 09/15/2041		1,658		2,312
0.78%, 03/25/2035^(a)			55		55	2.60%, 09/15/2023		1,071		1,390
Option One Mortgage Loan Trust 2005-1						Japanese Government CPI Linked Bond
1.70%, 02/25/2035^(a)			23		3	0.10%, 09/10/2024	JPY	2,127,700		18,743
			$		58	Mexican Udibonos
Mortgage Backed Securities - 0.27%						4.00%, 06/13/2019	MXN	197,270		12,946
						New Zealand Government Bond
Alternative Loan Trust 2007-OA7						3.07%, 09/20/2030^(a)	NZD	13,940		10,644
0.41%, 05/25/2047^(a)			1,213		568
Bear Stearns ALT-A Trust 2007-2								$		77,235
0.37%, 04/25/2037^(a)			515		377	TOTAL BONDS		$		82,415
ChaseMortgageFinanceTrust Series2007-						U.S. GOVERNMENT & GOVERNMENT	Principal
A2						AGENCY OBLIGATIONS - 92.56%	Amount (000's) Value (000's)
2.69%, 07/25/2037^(a)			112		111
						U.S. Treasury - 0.92%
Fannie Mae REMIC Trust 2004-W5						1.63%, 07/31/2019	$	15,000	$	15,177
0.65%, 02/25/2047^(a)			37		37
Fannie Mae REMIC Trust 2005-W2
0.40%, 05/25/2035^(a)			25		25	U.S. Treasury Inflation-Indexed Obligations - 91.64%
Freddie Mac REMICS						0.13%, 04/15/2016		23,966		23,815
0.60%, 09/15/2033^(a)			28		28	0.13%, 04/15/2017		66,582		66,545
0.65%, 06/15/2023^(a)			3		3	0.13%, 04/15/2018		103,132		103,226
HomeBanc Mortgage Trust 2005-5						0.13%, 04/15/2019		95,726		95,575
0.54%, 01/25/2036^(a)			485		422	0.13%, 04/15/2020		49,504		49,130
Impac CMB Trust Series 2004-5						0.13%, 01/15/2022		55,793		54,470
2.52%, 10/25/2034^(a)			30		23	0.13%, 07/15/2022		17,275		16,874
Impac CMB Trust Series 2004-6						0.13%, 01/15/2023		63,147		61,016
1.18%, 10/25/2034^(a)			19		18	0.13%, 07/15/2024		91,218		87,327
Impac CMB Trust Series 2005-1						0.25%, 01/15/2025		153,552		147,533
0.82%, 04/25/2035^(a)			136		121	0.38%, 07/15/2023		20,850		20,537
Impac CMB Trust Series 2005-5						0.38%, 07/15/2025		42,635		41,584
0.96%, 08/25/2035^(a)			29		19	0.63%, 07/15/2021		10,808		10,970
Impac CMB Trust Series 2007-A						0.63%, 01/15/2024		92,248		92,051
0.45%, 05/25/2037^(a),(b)			615		575	0.63%, 02/15/2043		28,112		24,207
JP Morgan Alternative Loan Trust 2007-A1						0.75%, 02/15/2042		27,687		24,749
0.35%, 03/25/2037^(a)			666		626	0.75%, 02/15/2045		61,208		54,288
Merrill Lynch Alternative Note Asset Trust						1.13%, 01/15/2021		87,421		90,860
Series 2007-A3						1.25%, 07/15/2020		17,730		18,576
0.41%, 04/25/2037^(a)			2,595		1,434	1.38%, 07/15/2018		7,023		7,307
WaMu Mortgage Pass-Through Certificates						1.38%, 01/15/2020		26,167		27,398
Series 2005-AR2 Trust						1.38%, 02/15/2044^(d)		54,051		56,005
0.57%, 01/25/2045^(a)			77		70	1.75%, 01/15/2028		27,649		30,694
WaMu Mortgage Pass-Through Certificates						2.00%, 01/15/2026		19,824		22,262
Series 2006-AR9 Trust						2.13%, 02/15/2040		18,567		22,246
0.42%, 08/25/2046^(a)			50		5	2.13%, 02/15/2041		14,282		17,208
			$		4,462	2.38%, 01/15/2025		61,523		70,758
						2.38%, 01/15/2027		21,041		24,661
Other Asset Backed Securities - 0.02%						2.50%, 07/15/2016		19,745		20,123
Argent Securities Trust 2006-W3						2.50%, 01/15/2029		38,073		45,906
0.32%, 04/25/2036^(a)			32		12	3.38%, 04/15/2032		2,659		3,668
Asset-Backed Pass-Through Certificates						3.63%, 04/15/2028		27,296		36,291
Series 2004-R2
0.82%, 04/25/2034^(a)			156		154


Portfolio Summary (unaudited)
Sector			Percent
Government			97.26	%
Exchange Traded Funds			2.06	%
Mortgage Securities			0.29	%
Purchased Options			0.17	%
Asset Backed Securities			0.02	%
Purchased Interest Rate Swaptions			0.01	%
Purchased Capped Options			0.00	%
Other Assets in Excess of Liabilities, Net			0.19	%
TOTAL NET ASSETS			100.00	%

Foreign Currency Contracts

										Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For			Fair Value		Asset		Liability
Barclays Bank PLC	12/15/2015	GBP	2,635,000		$	4,089	$	4,061	$	—	$	(28	)
Barclays Bank PLC	01/19/2016	GBP	2,706,698			4,152		4,171		19		—
Citigroup Inc	12/08/2015	EUR	44,490,000			50,058		48,941		—		(1,117	)
Citigroup Inc	12/15/2015	CAD	5,434,128			4,071		4,155		84		—
Citigroup Inc	01/19/2016	GBP	2,645,197			4,069		4,076		7		—
Deutsche Bank AG	11/02/2015	AUD	3,490,000			2,467		2,489		22		—
Deutsche Bank AG	11/10/2015	AUD	4,200,000			3,020		2,994		—		(26	)
Deutsche Bank AG	11/18/2015	MXN	69,185,225			4,155		4,185		30		—
Deutsche Bank AG	12/08/2015	EUR	22,152,500			24,690		24,369		—		(321	)
Deutsche Bank AG	12/15/2015	CAD	2,994,899			2,248		2,290		42		—
Deutsche Bank AG	03/22/2016	SEK	103,929,140			12,675		12,219		—		(456	)
Goldman Sachs & Co	12/08/2015	EUR	7,365,000			8,252		8,102		—		(150	)
Goldman Sachs & Co	12/15/2015	GBP	1,475,000			2,248		2,273		25		—
HSBC Securities Inc	12/08/2015	EUR	7,262,500			8,169		7,989		—		(180	)
HSBC Securities Inc	01/19/2016	EUR	7,295,000			8,166		8,033		—		(133	)
JP Morgan Chase	03/22/2016	CHF	12,164,703			12,667		12,381		—		(286	)
UBS AG	12/08/2015	EUR	43,165,000			48,526		47,483		—		(1,043	)
Total									$	229	$	(3,740	)
										Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For			Fair Value		Asset		Liability
Bank of America NA	12/03/2015	EUR	5,250,000		$	5,777	$	5,774	$	3	$	—
Barclays Bank PLC	11/04/2015	EUR	24,292,000			27,219		26,713		506		—
Barclays Bank PLC	11/05/2015	JPY	2,410,457,000			20,049		19,976		73		—
Barclays Bank PLC	12/03/2015	EUR	30,971,000			34,226		34,065		161		—
Barclays Bank PLC	12/03/2015	JPY	1,265,733,000			10,457		10,494		—		(37	)
Barclays Bank PLC	12/08/2015	EUR	2,475,000			2,812		2,723		89		—
Barclays Bank PLC	12/15/2015	CAD	5,407,995			4,089		4,136		—		(47	)
Barclays Bank PLC	01/19/2016	EUR	3,750,000			4,152		4,129		23		—
See accompanying notes					218


Schedule of Investments
Inflation Protection Fund
October 31, 2015


Foreign Currency Contracts (continued)

														Unrealized Appreciation/(Depreciation)
Counterparty		Delivery Date	Contracts to Deliver				In Exchange For				Fair Value				Asset			Liability
BNP Paribas		11/10/2015	AUD		7,015,000		$	4,957		$	5,000		$		4		$		(47	)
BNP Paribas		12/08/2015	EUR		14,385,000			16,262			15,824				438				—
Citigroup Inc		12/08/2015	EUR		14,660,000			16,429			16,127				302				—
Citigroup Inc		12/15/2015	GBP		2,700,000			4,071			4,161				—				(90	)
Citigroup Inc		01/19/2016	EUR		3,635,000			4,070			4,003				67				—
Deutsche Bank AG		12/08/2015	EUR		14,660,000			16,661			16,127				534				—
Deutsche Bank AG		12/15/2015	GBP		1,475,000			2,248			2,273				—				(25	)
Deutsche Bank AG		01/19/2016	GBP		430,000			664				663			1				—
Deutsche Bank AG		03/22/2016	CHF		12,164,703			12,675			12,381				294				—
Goldman Sachs & Co		11/04/2015	EUR		7,163,000			8,136			7,877				259				—
Goldman Sachs & Co		11/05/2015	JPY		6,000,000			50				50			—				—
Goldman Sachs & Co		12/03/2015	NZD		15,289,000			10,438			10,326				112				—
Goldman Sachs & Co		12/08/2015	EUR		7,345,000			8,300			8,080				220				—
Goldman Sachs & Co		12/15/2015	CAD		3,014,760			2,248			2,305				—				(57	)
HSBC Securities Inc		12/08/2015	EUR		28,770,000			32,863			31,648				1,215				—
HSBC Securities Inc		01/19/2016	GBP		5,358,606			8,165			8,257				—				(92	)
JP Morgan Chase		12/03/2015	MXN		99,264,000			6,032			5,999				33				—
JP Morgan Chase		03/22/2016	SEK		103,938,872			12,666			12,220				446				—
Morgan Stanley & Co		11/05/2015	JPY		115,100,000			967				954			13				—
Morgan Stanley & Co		12/03/2015	JPY		1,265,733,000			10,501			10,494				7				—
Morgan Stanley & Co		12/08/2015	EUR		4,370,000			4,971			4,807				164				—
Morgan Stanley & Co		12/15/2015	MXN		42,107,790			2,493			2,542				—				(49	)
UBS AG		12/08/2015	EUR		14,525,000			16,444			15,978				466				—
Total												$			5,430		$		(444	)

Amounts in thousands except contracts

Futures Contracts

																	Unrealized
Type		Long/Short			Contracts		Notional Value								Fair Value		Appreciation/(Depreciation)
90 Day Eurodollar; December 2015			Long		13		$	3,237			$				3,237	$			—
90 Day Eurodollar; March 2016			Long		1,354			336,792							336,672				(120	)
90 Day Eurodollar; March 2017			Short		1,354			334,844							334,607				237
Euro Bund 10 Year Bund; December 2015			Short		110			18,899							19,016				(117	)
Euro-Bobl 5 Year; December 2015			Short		8			1,132							1,139				(7	)
Euro-BTP; December 2015			Short		276			41,514							42,169				(655	)
Japan 10 Year Bond TSE; December 2015			Short		88			107,869							108,339				(470	)
UK 10 Year Gilt; December 2015			Long		2			367							363				(4	)
US 10 Year Note; December 2015			Short		311			40,042							39,711				331
US 2 Year Note; December 2015			Long		49			10,750							10,714				(36	)
US 5 Year Note; December 2015			Long		331			39,861							39,645				(216	)
US Long Bond; December 2015			Long		4			631							626				(5	)
US Ultra Bond; December 2015			Short		147			23,375							23,483				(108	)
Total															$			(1,170		)

Amounts in thousands except contracts

Interest Rate Swaps

		(Pay)/
		Receive						Upfront
		Floating	Fixed		Expiration		Notional	Premiums						Unrealized				Fair Value
Counterparty (Issuer)	Floating Rate Index	Rate	Rate		Date		Amount		Paid/(Received)					Appreciation/(Depreciation)				Asset	Liability
Barclays Bank PLC	US CPI Urban	Pay	1.85	%	03/10/2016	$	20,405		$		—				$(159	)	$	— $	(159	)
	Consumers
	NAS(CPURNSA)
Barclays Bank PLC	US CPI Urban	Receive	2.07	%	03/10/2018		20,405				—				(127	)		—	(127	)
	Consumers
	NAS(CPURNSA)
Total								$			—	$			(286	)	$	— $	(286	)

Amounts in thousands

Exchange Cleared Interest Rate Swaps

		(Pay)/
		Receive						Upfront
		Floating	Fixed		Expiration		Notional	Premiums						Unrealized
	Floating Rate Index	Rate	Rate		Date		Amount				Paid/(Received)			Appreciation/(Depreciation)				Fair Value
	3 Month LIBOR	Receive	2.20	%	08/09/2020	$	21,200		$		1				$(729	)	$		(728	)
	3 Month LIBOR	Pay	2.26	%	03/09/2025		12,200				—				233				233


Schedule of Investments
Inflation Protection Fund
October 31, 2015


Exchange Cleared Interest Rate Swaps (continued)

			(Pay)/
		Receive										Upfront
		Floating		Fixed		Expiration		Notional				Premiums			Unrealized
	Floating Rate Index		Rate	Rate		Date		Amount				Paid/(Received)					Appreciation/(Depreciation)			Fair Value
	3 Month LIBOR	Receive		2.16%		09/25/2025	$	6,300			$		—				$(49	)	$	(49	)
Total										$			1				$(545	)	$	(544	)

Amounts in thousands


Interest Rate Swaptions

				Pay/
				Receive											Upfront
Purchased Swaptions		Floating Rate		Floating		Exercise		Expiration		Notional			Premiums				Fair		Unrealized
Outstanding	Counterparty (Issuer)		Index	Rate		Rate		Date		Amount					Paid/(Received)		Value			Appreciation/(Depreciation)
Put - 10 Year Interest Barclays Bank PLC			3 Month	Receive		2.75% 01/18/2016 $						35,800		$	309	$	24	$		(285	)
Rate Swap			LIBOR
Put - 30 Year Interest Barclays Bank PLC			3 Month	Receive		4.00% 11/22/2017						6,900			313		106			(207	)
Rate Swap			LIBOR
Put - 30 Year Interest Deutsche Bank AG			3 Month	Receive		3.25% 03/17/2016						28,140			505		125			(380	)
Rate Swap			LIBOR
Total													$		1,127	$	255	$		(872	)

				Pay/
				Receive											Upfront
Written Swaptions		Floating Rate		Floating		Exercise		Expiration		Notional					Premiums		Fair		Unrealized
Outstanding	Counterparty (Issuer)		Index	Rate		Rate		Date		Amount					Paid/(Received)		Value			Appreciation/(Depreciation)
Call - 10 Year Interest Barclays Bank PLC			3 Month	Receive		2.10% 03/07/2017						$8,800		$	(168	) $	(211	) $		(43	)
Rate Swap			LIBOR
Call - 10 Year Interest Barclays Bank PLC			3 Month	Receive		2.10% 03/07/2017						17,600			(391	)	(422	)		(31	)
Rate Swap			LIBOR
Call - 10 Year Interest Barclays Bank PLC			3 Month	Receive		2.10% 01/20/2016						44,765			(269	)	(542	)		(273	)
Rate Swap			LIBOR
Call - 10 Year Interest Barclays Bank PLC			3 Month	Receive		2.15% 01/19/2016						44,765			(309	)	(645	)		(336	)
Rate Swap			LIBOR
Call - 10 Year Interest Barclays Bank PLC			3 Month	Receive		3.10% 03/17/2017						8,800			(223	)	(212	)		11
Rate Swap			LIBOR
Call - 30 Year Interest Barclays Bank PLC			6 Month	Receive		1.70% 12/23/2015						EUR7,730			(521	)	(453	)		68
Rate Swap		EURIBOR
Put - 10 Year Interest Barclays Bank PLC			3 Month	Pay		3.10% 03/07/2017						$8,800			(258	)	(106	)		152
Rate Swap			LIBOR
Put - 10 Year Interest Barclays Bank PLC			3 Month	Pay		3.10% 03/07/2017						17,600			(496	)	(213	)		283
Rate Swap			LIBOR
Put - 10 Year Interest Barclays Bank PLC			3 Month	Pay		3.10% 03/17/2017						8,800			(222	)	(110	)		112
Rate Swap			LIBOR
Put - 30 Year Interest Barclays Bank PLC			6 Month	Pay		1.70% 12/23/2015						EUR7,730			(521	)	(85	)		436
Rate Swap		EURIBOR
Total													$		(3,378)		$ (2,999)			$379

Amounts in thousands


Options

										Upfront Premiums									Unrealized
Purchased Options Outstanding			Exercise Price			Expiration Date		Contracts		Paid/(Received)					Fair Value )					Appreciation/(Depreciation
Call - AUD versus USD		AUD		0.74	11/10/2015		23,190,000		$				67		$		4	$		(63	)
Call - EUR versus GBP		EUR		0.77	01/15/2016		14,625,000						28				16			(12	)
Call - EUR versus USD		EUR		1.15	11/09/2015		43,840,000						265				2			(263	)
Call - EUR versus USD		EUR		1.10	11/09/2015		14,805,000						178				102			(76	)
Call - NZD versus USD		NZD		0.68	12/11/2015		25,000,000						256				253			(3	)
Call - US 10 Year Note Future; March 2016		$129.00			12/25/2015			500					493				188			(305	)
Call - US 10 Year Note Future; March 2016		$130.00			12/28/2015			407					239				76			(163	)
Call - USD versus JPY		$126.50			11/27/2015		33,230,000						63				11			(52	)
Call - USD versus JPY		$121.40			11/09/2015		16,550,000						154				38			(116	)
Call - USD versus MXN		$16.80			11/16/2015		16,595,000						147				56			(91	)
Put - 90 Day Eurodollar Future; December 2016			$99.00		12/14/2015			678					85				170			85
Put - AUD versus USD		AUD		0.70	11/09/2015		23,315,000						313				17			(296	)
Put - AUD versus USD		AUD		0.70	11/10/2015		23,190,000						64				43			(21	)
Put - CHF versus NOK		CHF		7.72	08/02/2016		32,280,000						397				144			(253	)
Put - CHF versus SEK		CHF		8.26	03/21/2016		17,370,000						279				108			(171	)
Put - EUR versus GBP		EUR		0.72	01/15/2016		14,625,000						190				276			86
Put - EUR versus USD		EUR		1.10	12/07/2015		36,905,000						367				391			24
Put - EUR versus USD		EUR		1.10	11/09/2015		14,805,000						153				96			(57	)


					Schedule of Investments
Inflation Protection Fund
October 31, 2015


Options (continued)

										Upfront Premiums								Unrealized
Purchased Options Outstanding		Exercise Price			Expiration Date		Contracts			Paid/(Received)				Fair Value			Appreciation/(Depreciation)
Put - EUR versus USD		EUR		1.10	11/18/2015		14,805,000		$		153		$	105			$	(48	)
Put - GBP versus JPY		GBP		180.00	05/13/2016		10,840,000				357			302				(55	)
Put - Japan 10 Year Bond TSE Future;		JPY		148.00	12/01/2015			48			75			40				(35	)
December 2015
Put - NZD versus USD		NZD		0.66	12/30/2015		24,465,000				248			189				(59	)
Put - USD versus JPY		$		114.00	11/27/2015		33,230,000				124			4				(120	)
Put - USD versus JPY		$		121.40	11/09/2015		16,550,000				146			135				(11	)
Put - USD versus MXN		$		16.14	11/16/2015		16,595,000				113			25				(88	)
Total									$		4,954		$	2,791			$	(2,163	)

										Upfront Premiums								Unrealized
Written Options Outstanding				Exercise Price	Expiration Date		Contracts			Paid/(Received)				Fair Value			Appreciation/(Depreciation)
Call - CHF versus SEK		CHF		9.10	03/21/2016		17,370,000		$		(183	)	$	(130	)		$	53
Call - EUR versus GBP		EUR		0.77	01/15/2016		14,625,000				(126	)		(16	)			110
Call - EUR versus USD		EUR		1.10	11/06/2015		14,805,000				(159	)		(92	)			67
Call - GBP versus JPY		GBP		192.50	05/13/2016		10,840,000				(187	)		(230	)			(43	)
Call - Japan 10 Year Bond TSE Future;		$		130.50	12/25/2015			500			(257	)		(70	)			187
December 2015
Call - NZD versus USD		NZD		0.68	12/11/2015		25,000,000				(226	)		(253	)			(27	)
Call - NZD versus USD		NZD		0.70	01/28/2016		24,465,000				(159	)		(200	)			(41	)
Call - USD versus JPY		$		121.40	11/06/2015		16,550,000				(141	)		(31	)			110
Call - USD versus JPY		$		126.50	11/27/2015		33,230,000				(176	)		(11	)			165
Put - AUD versus USD		AUD		0.66	12/11/2015		46,550,000				(334	)		(40	)			294
Put - EUR versus GBP		EUR		0.72	01/15/2016		14,625,000				(219	)		(276	)			(57	)
Put - EUR versus USD		EUR		1.08	11/18/2015		29,610,000				(130	)		(59	)			71
Put - EUR versus USD		EUR		1.10	11/06/2015		14,805,000				(134	)		(86	)			48
Put - Japan 10 Year Bond TSE Future;		JPY		147.50	12/01/2015			97			(83	)		(48	)			35
December 2015
Put - USD versus JPY		$		121.40	11/06/2015		16,550,000				(133	)		(128	)			5
Put - USD versus JPY		$		114.00	11/27/2015		33,230,000				(197	)		(6	)			191
Total									$		(2,844	)	$	(1,676	)		$	1,168

Amounts in thousands except contracts


Purchased Capped Options

											Upfront
	Counterparty	Strike				Expiration				Notional	Premiums							Unrealized
Description	(Issuer)	Index		Exercise Index		Date				Amount	Paid/(Received)			Fair Value				Appreciation/(Depreciation)
Floor - Eurostat	Barclays Bank PLC	15	%	Max(0, 0% -		11/19/2015				EUR 8,015		$	16	$		—	$	(16	)
Eurozone HICP ex				CPTFEMU)
Tobacco NSA
Total											$		16	$		—	$	(16	)

Amounts in thousands

Schedule of Investments International Emerging Markets Fund October 31, 2015


COMMON STOCKS - 97.86%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.57%				Electric - 4.31%
Multiplus SA	284,000	$	2,529	China Power International Development Ltd	12,963,000	$	8,146
Smiles SA	534,370		4,171	Huadian Power International Corp Ltd	12,187,631		8,911
	$		6,700	Huaneng Power International Inc	3,868,000		4,188
				JSW Energy Ltd	2,831,588		4,025
Agriculture - 1.34%				Korea Electric Power Corp	398,069		17,923
KT&G Corp	159,363		15,923	Tenaga Nasional BHD	2,706,000		7,954
					$		51,147

Airlines - 1.29%				Electronics - 3.14%
Air China Ltd	8,324,000		8,018	Elite Material Co Ltd	2,692,000		5,500
China Eastern Airlines Corp Ltd ^(a)	11,344,000		7,278
				FLEXium Interconnect Inc	1,416,406		3,951
	$		15,296	Hon Hai Precision Industry Co Ltd	6,199,918		16,480
Apparel - 1.43%				Pegatron Corp	3,734,000		9,125
Feng TAY Enterprise Co Ltd	1,240,474		7,108	Zhen Ding Technology Holding Ltd	783,000		2,225
Makalot Industrial Co Ltd	781,696		5,952		$		37,281
Pou Chen Corp	2,758,000		3,890	Engineering & Construction - 3.48%
	$		16,950	Grupo Aeroportuario del Centro Norte Sab de	700,600		3,598
Automobile Manufacturers - 3.49%				CV ^(a)
Ashok Leyland Ltd	8,197,932		11,706	Grupo Aeroportuario del Pacifico SAB de CV	1,178,500		10,629
Ford Otomotiv Sanayi AS	188,921		2,219	Grupo Aeroportuario del Sureste SAB de CV	749,526		11,616
Geely Automobile Holdings Ltd	7,750,000		4,133	Hyundai Development Co-Engineering &	187,567		7,533
Kia Motors Corp	203,999		9,958	Construction
Maruti Suzuki India Ltd	195,789		13,325	Promotora y Operadora de Infraestructura	630,108		7,922
	$		41,341	SAB de CV ^(a)
					$		41,298
Banks - 12.94%
Abu Dhabi Commercial Bank PJSC	3,274,061		6,647	Food - 3.65%
AMMB Holdings Bhd	2,172,600		2,408	Gruma SAB de CV	1,148,000		17,619
Banco de Chile	58,658,471		6,207	JBS SA	3,096,129		11,440
Bank Negara Indonesia Persero Tbk PT	15,024,100		5,194	Uni-President Enterprises Corp	8,413,040		14,224
Bank of China Ltd	19,846,113		9,359		$		43,283
Bank Rakyat Indonesia Persero Tbk PT	9,095,500		6,961	Forest Products & Paper - 0.97%
Barclays Africa Group Ltd	1,015,526		13,015	Mondi PLC	498,727		11,533
China Construction Bank Corp	51,346,722		37,214
FirstRand Ltd	3,169,695		11,615
Grupo Financiero Inbursa SAB de CV	2,006,200		4,020	Gas - 0.50%
HDFC Bank Ltd ADR	144,309		8,823	Korea Gas Corp	158,800		5,913
Industrial & Commercial Bank of China Ltd	22,386,000		14,200
Industrial Bank of Korea	935,875		11,456	Holding Companies - Diversified - 1.25%
Turkiye Halk Bankasi AS	836,461		3,133	AVI Ltd	733,166		4,664
Turkiye Is Bankasi	2,476,012		4,220	KOC Holding AS	1,162,638		5,251
Yes Bank Ltd	781,693		9,040	Siam Cement PCL/The	387,550		4,921
	$		153,512		$		14,836

Beverages - 1.69%				Home Furnishings - 1.52%
Ambev SA	2,854,900		14,132	Steinhoff International Holdings Ltd	2,958,201		18,085
Arca Continental SAB de CV	917,600		5,861
	$		19,993
				Insurance - 2.95%
Biotechnology - 0.00%				BB Seguridade Participacoes SA	1,226,980		8,463
China Biologic Products Inc ^(a)	483		55	China Taiping Insurance Holdings Co Ltd ^(a)	2,285,600		7,176
				PICC Property & Casualty Co Ltd	3,962,460		8,991
Chemicals - 2.31%				Ping An Insurance Group Co of China Ltd	829,500		4,656
LG Chem Ltd	42,143		11,203	Powszechny Zaklad Ubezpieczen SA	58,662		5,696
Lotte Chemical Corp	34,318		7,205		$		34,982
PTT Global Chemical PCL ^(b)	2,950,100		4,621
				Internet - 6.37%
UPL Ltd	616,932		4,325	Alibaba Group Holding Ltd ADR^(a)	79,219		6,641
	$		27,354	Baidu Inc ADR^(a)	36,487		6,840
				Com2uSCorp ^(a)	37,252		3,747
Commercial Services - 0.43%
TAL Education Group ADR^(a)	132,325		5,088	Tencent Holdings Ltd	2,380,900		44,878
				Vipshop Holdings Ltd ADR^(a)	654,923		13,439
					$		75,545
Computers - 1.26%
Infosys Ltd ADR	824,908		14,980	Leisure Products & Services - 0.54%
				China Travel International Investment Hong	14,134,000		6,388
				Kong Ltd
Diversified Financial Services - 4.28%
Fubon Financial Holding Co Ltd	10,631,000		17,183
Indiabulls Housing Finance Ltd	435,111		4,780	Media - 1.96%
KB Financial Group Inc	412,125		13,057	Naspers Ltd	159,362		23,266
Mega Financial Holding Co Ltd	12,914,691		9,410
SinoPac Financial Holdings Co Ltd	19,278,000		6,362	Metal Fabrication & Hardware - 1.18%
	$		50,792	Catcher Technology Co Ltd	645,000		6,330

Schedule of Investments International Emerging Markets Fund October 31, 2015


COMMON STOCKS (continued)	Shares Held Value (000's)				INVESTMENT COMPANIES - 0.90%		Shares Held	Value(000			's)

Metal Fabrication & Hardware (continued)					Publicly Traded Investment Fund - 0.90%
Hyosung Corp	74,864	$	7,644		Goldman Sachs Financial Square Funds -		10,671,865		$	10,672
	$		13,974		Government Fund

Mining - 0.41%					TOTAL INVESTMENT COMPANIES			$		10,672
MMC Norilsk Nickel PJSC ADR	322,892		4,811
					PREFERRED STOCKS - 1.00%		Shares Held	Value(000			's)

					Banks - 0.94%
Miscellaneous Manufacturers - 0.97%
Largan Precision Co Ltd	67,000		5,207		Itau Unibanco Holding SA		1,634,441			11,218
SKC Co Ltd	189,086		6,346
	$		11,553		Media - 0.06%
					Zee Entertainment Enterprises Ltd		50,630,718			690
Oil & Gas - 7.31%
Bharat Petroleum Corp Ltd	446,806		5,943
					TOTAL PREFERRED STOCKS			$		11,908
China Petroleum & Chemical Corp	26,863,978		19,365
CNOOC Ltd	10,722,000		12,111		Total Investments			$		1,183,479
Gazprom PAO ADR	1,463,812		6,169		Other Assets in Excess of Liabilities, Net - 0.24%			$		2,824
GS Holdings Corp	78,625		3,453		TOTAL NET ASSETS - 100.00%			$		1,186,303
Hindustan Petroleum Corp Ltd	424,046		4,978
Lukoil PJSC ADR	473,544		17,202
					(a)	Non-Income Producing Security
MOL Hungarian Oil & Gas PLC	101,309		4,572
SK Innovation Co Ltd ^(a)	64,990		6,739		(b)	Fair value of these investments is determined in good faith by the Manager
						under procedures established and periodically reviewed by the Board of
Tatneft PAO ADR	199,078		6,139
						Directors. At the end of the period, the fair value of these securities totaled
	$		86,671
						$4,621 or 0.39% of net assets.
Pharmaceuticals - 2.62%					(c)	Security is Illiquid. At the end of the period, the value of these securities
Aurobindo Pharma Ltd	1,399,338		17,849			totaled $0 or 0.00% of net assets.
Dr Reddy's Laboratories Ltd ADR	7,224		468
Sino Biopharmaceutical Ltd	3,976,000		4,941
Wockhardt Ltd	342,552		7,825
						Portfolio Summary (unaudited)
	$		31,083
					Country					Percent
Real Estate - 2.15%					China					19.62	%
China Overseas Land & Investment Ltd	2,662,000		8,598		Korea, Republic Of					17.69	%
China Overseas Property Holdings Ltd ^(a),(c)	1		—		Taiwan, Province Of China					15.69	%
China Vanke Co Ltd	3,149,300		7,349		India					10.07	%
Shimao Property Holdings Ltd	3,447,500		6,038		South Africa					7.33	%
Sino-Ocean Land Holdings Ltd	5,972,500		3,471		Mexico					7.06	%
	$		25,456		Hong Kong					5.76	%
					Brazil					4.36	%
REITS - 0.50%
Mexico Real Estate Management SA de CV ^(a)	4,271,000		5,911		Russian Federation					2.90	%
					Indonesia					2.68	%
					Malaysia					1.69	%
Retail - 4.53%					Turkey					1.25	%
ANTA Sports Products Ltd	2,365,000		6,616		United States					0.90	%
Astra International Tbk PT	12,761,900		5,486		Thailand					0.81	%
BGF retail Co Ltd	50,908		7,583		United Arab Emirates					0.56	%
Clicks Group Ltd	664,965		4,850		Chile					0.52	%
GS Retail Co Ltd	141,995		7,157		Poland					0.48	%
Shinsegae Co Ltd	28,172		5,732		Hungary					0.39	%
Wal-Mart de Mexico SAB de CV	6,166,900		16,334		Other Assets in Excess of Liabilities, Net					0.24	%
	$		53,758		TOTAL NET ASSETS					100.00	%

Semiconductors - 10.13%
Powertech Technology Inc	2,262,000		4,990
Samsung Electronics Co Ltd	46,365		55,611
Silicon Motion Technology Corp ADR	137,179		4,361
Taiwan Semiconductor Manufacturing Co Ltd	11,485,685		48,397
Win Semiconductors Corp ^(a)	5,035,468		6,832
	$		120,191

Telecommunications - 5.32%
Bharti Infratel Ltd	1,305,277		7,758
China Mobile Ltd	2,237,093		26,823
Chunghwa Telecom Co Ltd	2,820,000		8,640
LG Uplus Corp	610,409		5,850
Telekomunikasi Indonesia Persero Tbk PT	71,851,000		14,096
	$		63,167

Textiles - 0.25%
Welspun India Ltd	276,087		3,022


Transportation - 0.82%
MISC Bhd	4,652,100		9,761

TOTAL COMMON STOCKS	$		1,160,899
See accompanying notes				223


COMMON STOCKS - 95.90%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.51%				Diversified Financial Services - 4.95%
Teleperformance	25,000	$	1,962	Azimut Holding SpA	60,000	$	1,443
				CTBC Financial Holding Co Ltd	4,215,900		2,310
				E.Sun Financial Holding Co Ltd	2,995,000		1,800
Aerospace & Defense - 2.56%				Fubon Financial Holding Co Ltd	1,839,100		2,972
MTU Aero Engines AG	19,000		1,757	Henderson Group PLC	607,178		2,638
Safran SA	72,330		5,494	London Stock Exchange Group PLC	107,506		4,209
Thales SA	34,430		2,489	Magellan Financial Group Ltd	111,000		1,768
	$		9,740	Mitsubishi UFJ Lease & Finance Co Ltd	325,400		1,708
Agriculture - 1.12%					$		18,848
KT&G Corp	42,521		4,249	Electric - 0.45%
				Huaneng Power International Inc	1,573,800		1,704
Airlines - 0.98%
Japan Airlines Co Ltd	98,700		3,718	Electrical Components & Equipment - 0.49%
				TKH Group NV	49,000		1,854
Apparel - 0.44%
Gildan Activewear Inc	58,000		1,667	Electronics - 2.03%
				Fujitsu General Ltd	158,700		1,993
Automobile Manufacturers - 5.09%				Japan Aviation Electronics Industry Ltd	137,000		2,427
Daimler AG	60,055		5,208	Pegatron Corp	780,000		1,906
Fuji Heavy Industries Ltd	184,000		7,116	Zhen Ding Technology Holding Ltd	500,000		1,421
Shinmaywa Industries Ltd	175,000		1,910		$		7,747
Toyota Motor Corp	83,900		5,140
				Food - 0.92%
	$		19,374	SPAR Group Ltd/The	127,000		1,823
Automobile Parts & Equipment - 7.16%				Viscofan SA	29,000		1,692
Brembo SpA	44,000		1,939		$		3,515
Bridgestone Corp	140,200		5,141

Continental AG	13,960		3,352	Forest Products & Paper - 1.25%
				Mondi PLC	205,648		4,756
Koito Manufacturing Co Ltd	101,800		3,856
Linamar Corp	28,300		1,645
Magna International Inc	101,800		5,369	Hand & Machine Tools - 0.55%
NOK Corp	101,800		2,392	KUKA AG	25,000		2,113
TS Tech Co Ltd	66,000		1,810
Valeo SA	11,400		1,761
				Healthcare - Services - 0.57%
	$		27,265	ICON PLC ^(a)	34,000		2,172
Banks - 4.61%
BOC Hong Kong Holdings Ltd	488,000		1,561
China CITIC Bank Corp Ltd ^(a)	5,494,500		3,553	Home Builders - 4.36%
				Barratt Developments PLC	640,146		6,030
China Merchants Bank Co Ltd	1,494,100		3,901	Bellway PLC	80,421		3,212
DNB ASA	253,176		3,223	Berkeley Group Holdings PLC	86,577		4,419
Fukuoka Financial Group Inc	453,900		2,389	Persimmon PLC ^(a)	96,126		2,948
Sumitomo Mitsui Financial Group Inc	73,400		2,928		$		16,609
	$		17,555
				Home Furnishings - 0.50%
Chemicals - 5.26%				Howden Joinery Group PLC	266,000		1,897
Evonik Industries AG	92,438		3,356
Nissan Chemical Industries Ltd	184,900		4,592
Nitto Denko Corp	101,300		6,496	Insurance - 7.92%
Symrise AG	31,000		2,040	AXA SA	224,124		5,981
Yara International ASA	78,159		3,551	China Life Insurance Co Ltd/Taiwan	1,870,000		1,543
	$		20,035	Dai-ichi Life Insurance Co Ltd/The	191,800		3,318
				People's Insurance Co Group of China Ltd/The	6,130,780		3,281
Commercial Services - 1.13%				PICC Property & Casualty Co Ltd	1,681,000		3,814
Intrum Justitia AB	70,567		2,532	Porto Seguro SA	115,800		971
Zhejiang Expressway Co Ltd	1,430,000		1,758	Prudential PLC	177,238		4,140
	$		4,290	Swiss Life Holding AG ^(a)	7,997		1,906
Computers - 7.68%				Tokio Marine Holdings Inc	135,300		5,213
Atos SE	36,000		2,866		$		30,167
Cap Gemini SA	21,400		1,903
Cognizant Technology Solutions Corp ^(a)	56,000		3,814	Internet - 1.10%
				Tencent Holdings Ltd	222,200		4,188
Foxconn Technology Co Ltd	1,252,290		3,280
Ingenico Group SA	32,856		3,872
Itochu Techno-Solutions Corp	83,000		1,820	Lodging - 0.57%
Nomura Research Institute Ltd	195,400		7,986	Echo Entertainment Group Ltd	599,000		2,165
Obic Co Ltd	70,500		3,721
	$		29,262	Metal Fabrication & Hardware - 2.62%
Consumer Products - 0.56%				Assa Abloy AB	183,975		3,660
Societe BIC SA	13,500		2,151	Aurubis AG	48,196		3,220
				Catcher Technology Co Ltd	315,100		3,092
					$		9,972


COMMON STOCKS (continued)	Shares Held Value (000's)			INVESTMENT COMPANIES - 3.54%		Shares Held	Value(000			's)

Miscellaneous Manufacturers - 3.32%				Publicly Traded Investment Fund - 3.54%
CRRC Corp Ltd	1,376,000	$	1,749	First American Government Obligations Fund		13,480,273		$	13,480
Hexpol AB	180,000		1,749
Largan Precision Co Ltd	52,000		4,041	TOTAL INVESTMENT COMPANIES			$		13,480
Sunny Optical Technology Group Co Ltd	1,084,700		2,522	Total Investments			$		378,709
Zhuzhou CSR Times Electric Co Ltd	400,000		2,589	Other Assets in Excess of Liabilities, Net - 0.56%			$		2,142
	$		12,650	TOTAL NET ASSETS - 100.00%			$		380,851
Packaging & Containers - 0.59%
CCL Industries Inc	16,000		2,267	(a)	Non-Income Producing Security
				(b)	Security is Illiquid. At the end of the period, the value of these securities
					totaled $51 or 0.01% of net assets.
Pharmaceuticals - 7.97%
Dr Reddy's Laboratories Ltd ADR	38,160		2,473
Hikma Pharmaceuticals PLC	54,600		1,819		Portfolio Summary (unaudited)
Ipsen SA	30,000		1,892	Country					Percent
Jazz Pharmaceuticals PLC ^(a)	14,300		1,963	Japan					25.85	%
Novartis AG	50,142		4,542	China					9.72	%
Novo Nordisk A/S	63,265		3,360	United Kingdom					9.26	%
Shire PLC	75,000		5,680	France					7.96	%
Sino Biopharmaceutical Ltd	4,473,000		5,559	Taiwan, Province Of China					6.85	%
Towa Pharmaceutical Co Ltd	27,000		1,836	Canada					5.54	%
Valeant Pharmaceuticals International Inc ^(a)	13,000		1,213	Germany					5.53	%
	$		30,337	United States					4.86	%
				Hong Kong					4.78	%
Real Estate - 0.77%				Ireland					2.58	%
China Overseas Land & Investment Ltd	892,400		2,882	Sweden					2.09	%
China Overseas Property Holdings Ltd ^(a),(b)	297,466		51	Norway					1.78	%
	$		2,933	Denmark					1.74	%
				South Africa					1.73	%
Retail - 4.49%
				Switzerland					1.69	%
Alimentation Couche-Tard Inc	110,600		4,758
				Netherlands					1.22	%
ANTA Sports Products Ltd	978,000		2,736
				Korea, Republic Of					1.12	%
Lojas Renner SA	265,000		1,271
				Australia					1.03	%
Next PLC	25,941		3,195
				Italy					0.89	%
Pandora A/S	28,375		3,274
				India					0.65	%
USS Co Ltd	105,800		1,868
				Isle of Man					0.61	%
	$		17,102	Brazil					0.58	%
Semiconductors - 2.84%				Jordan					0.48	%
Dialog Semiconductor PLC ^(a)	69,291		2,563	Israel					0.46	%
Mellanox Technologies Ltd ^(a)	37,000		1,743	Spain					0.44	%
NXP Semiconductors NV ^(a)	35,300		2,766	Other Assets in Excess of Liabilities, Net					0.56	%
Taiwan Semiconductor Manufacturing Co Ltd	170,800		3,751	TOTAL NET ASSETS					100.00	%
ADR
	$		10,823

Software - 4.66%
Capcom Co Ltd	90,000		1,897
Constellation Software Inc/Canada	9,400		4,062
DH Corp	50,000		1,350
NetEase Inc ADR	36,300		5,246
Nexon Co Ltd	204,800		2,841
Playtech PLC	177,809		2,343
	$		17,739

Telecommunications - 2.62%
China Mobile Ltd	277,700		3,329
KDDI Corp	274,800		6,650
	$		9,979

Toys, Games & Hobbies - 0.51%
Bandai Namco Holdings Inc	79,300		1,949


Transportation - 1.48%
Central Japan Railway Co	20,000		3,648
Hitachi Transport System Ltd	114,000		2,007
	$		5,655

Water - 1.27%
Guangdong Investment Ltd	3,427,500		4,820

TOTAL COMMON STOCKS	$		365,229


COMMON STOCKS - 95.67%	Shares Held		Value (000's)	COMMON STOCKS (continued)	Shares Held	Value(000	's)

Airlines - 4.66%				Retail - 11.66%
Delta Air Lines Inc	1,382,530	$	70,288	L Brands Inc	586,591	$ 56,301
United Continental Holdings Inc ^(a)	1,105,477		66,671	Starbucks Corp	1,351,104	84,539
	$		136,959	Target Corp	1,080,105	83,362
				TJX Cos Inc/The	560,100	40,994
Apparel - 5.95%				Ulta Salon Cosmetics & Fragrance Inc ^(a)	447,015	77,763
NIKE Inc	922,042		120,815			$342,959
Under Armour Inc ^(a)	571,398		54,329
	$		175,144	Semiconductors - 4.04%
				Avago Technologies Ltd	163,799	20,168
Banks - 2.73%				Lam Research Corp	551,242	42,220
Capital One Financial Corp	1,017,009		80,242	NXP Semiconductors NV ^(a)	719,109	56,342
						$118,730

Beverages - 1.80%				Software - 3.81%
Constellation Brands Inc	393,321		53,020	Activision Blizzard Inc	1,041,300	36,195
				ServiceNow Inc ^(a)	553,985	45,233
Biotechnology - 5.51%				Tableau Software Inc ^(a)	364,579	30,610
Alexion Pharmaceuticals Inc ^(a)	155,493		27,367			$112,038
Gilead Sciences Inc	1,247,391		134,880
				Telecommunications - 1.25%
	$		162,247	Palo Alto Networks Inc ^(a)	228,445	36,780
Building Materials - 1.26%
Masco Corp	1,281,000		37,149	TOTAL COMMON STOCKS		$2,815,042
				INVESTMENT COMPANIES - 2.18%	Shares Held	Value(000	's)

Chemicals - 3.59%				Publicly Traded Investment Fund - 2.18%
PPG Industries Inc	1,013,802		105,699	Goldman Sachs Financial Square Funds -	64,288,507	64,289
				Government Fund
Commercial Services - 7.00%
FleetCor Technologies Inc ^(a)	225,207		32,624	TOTAL INVESTMENT COMPANIES		$64,289
MasterCard Inc	1,029,209		101,881	Total Investments		$2,879,331
McGraw Hill Financial Inc	470,975		43,631	Other Assets in Excess of Liabilities, Net - 2.15%		$63,167
PayPal Holdings Inc ^(a)	775,700		27,933	TOTAL NET ASSETS - 100.00%		$2,942,498
	$		206,069

Computers - 6.37%				(a) Non-Income Producing Security
Apple Inc	1,568,717		187,462


Diversified Financial Services - 3.45%				Portfolio Summary (unaudited)
Visa Inc	1,308,356		101,502	Sector		Percent
				Consumer, Non-cyclical		27.87	%
Food - 1.05%				Consumer, Cyclical		26.29	%
Mondelez International Inc	670,755		30,962	Communications		16.26	%
				Technology		14.22	%
				Financial		6.18	%
Healthcare - Products - 2.91%				Basic Materials		3.59	%
Edwards Lifesciences Corp ^(a)	342,598		53,839
				Exchange Traded Funds		2.18	%
Intuitive Surgical Inc ^(a)	63,671		31,619
				Industrial		1.26	%
	$		85,458	Other Assets in Excess of Liabilities, Net		2.15	%
Internet - 15.01%				TOTAL NET ASSETS		100.00	%
Alphabet Inc ^(a)	128,076		94,442
Amazon.com Inc ^(a)	161,223		100,910
Facebook Inc ^(a)	1,121,486		114,358
Netflix Inc ^(a)	347,144		37,623
Priceline Group Inc/The ^(a)	45,549		66,239
Splunk Inc ^(a)	501,958		28,190
	$		441,762

Leisure Products & Services - 2.52%
Royal Caribbean Cruises Ltd	755,002		74,254

Lodging - 1.50%
Hilton Worldwide Holdings Inc	1,769,486		44,219


Pharmaceuticals - 9.60%
Allergan PLC ^(a)	159,254		49,125
AmerisourceBergen Corp	307,618		29,688
Bristol-Myers Squibb Co	1,393,421		91,896
DexCom Inc ^(a)	233,977		19,495
Eli Lilly & Co	489,800		39,953
McKesson Corp	292,110		52,230
	$		282,387


Schedule of Investments
LargeCap Growth Fund I
October 31, 2015



COMMON STOCKS - 96.47%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.06%				Beverages (continued)
Interpublic Group of Cos Inc/The	37,123	$	851	Keurig Green Mountain Inc	267,004	$	13,551
Nielsen Holdings PLC	14,943		710	Monster Beverage Corp ^(a)	8,814		1,202
Omnicom Group Inc	35,062		2,627	PepsiCo Inc	133,374		13,630
	$		4,188		$		45,771

Aerospace & Defense - 1.99%				Biotechnology - 6.01%
B/E Aerospace Inc	8,683		408	Alexion Pharmaceuticals Inc ^(a)	949,233		167,065
Boeing Co/The	922,294		136,564	Alnylam Pharmaceuticals Inc ^(a)	4,836		416
General Dynamics Corp	11,862		1,762	Amgen Inc	61,121		9,668
Harris Corp	2,655		210	Biogen Inc ^(a)	90,908		26,410
Lockheed Martin Corp	11,629		2,556	BioMarin Pharmaceutical Inc ^(a)	182,269		21,332
Northrop Grumman Corp	7,537		1,415	Bluebird Bio Inc ^(a)	2,847		219
Rockwell Collins Inc	11,275		978	Celgene Corp ^(a)	530,582		65,108
Spirit AeroSystems Holdings Inc ^(a)	11,995		633	Charles River Laboratories International Inc(a)	3,768		246
TransDigm Group Inc ^(a)	4,504		990
United Technologies Corp	9,472		932	Gilead Sciences Inc	549,334		59,400
	$		146,448	Illumina Inc ^(a)	68,526		9,819
				Incyte Corp ^(a)	181,659		21,350
Agriculture - 0.26%				Intercept Pharmaceuticals Inc ^(a)	1,269		199
Altria Group Inc	170,197		10,292	Intrexon Corp ^(a)	3,683		124
Philip Morris International Inc	45,891		4,057	Isis Pharmaceuticals Inc ^(a)	9,534		459
Reynolds American Inc	90,782		4,386	Juno Therapeutics Inc ^(a)	951		49
	$		18,735	Medivation Inc ^(a)	12,536		527
				Puma Biotechnology Inc ^(a)	1,988		164
Airlines - 1.28%				Regeneron Pharmaceuticals Inc ^(a)	57,106		31,830
Alaska Air Group Inc	204,774		15,614	Seattle Genetics Inc ^(a)	7,560		314
American Airlines Group Inc	1,489,638		68,851	United Therapeutics Corp ^(a)	3,683		540
Delta Air Lines Inc	74,668		3,796	Vertex Pharmaceuticals Inc ^(a)	206,348		25,740
JetBlue Airways Corp ^(a),(b)	12,885		320
Southwest Airlines Co	65,459		3,030		$		440,979
United Continental Holdings Inc ^(a)	39,225		2,366
				Building Materials - 0.71%
	$		93,977	Martin Marietta Materials Inc	835		130
Apparel - 1.55%				Vulcan Materials Co	537,110		51,874
Carter's Inc	5,061		460		$		52,004
Hanesbrands Inc	953,891		30,468
Michael Kors Holdings Ltd ^(a)	16,197		626	Chemicals - 1.71%
				Air Products & Chemicals Inc	16,034		2,228
NIKE Inc	215,191		28,196	Airgas Inc	1,725		166
Ralph Lauren Corp	727		81	Ashland Inc	822		90
Skechers U.S.A. Inc ^(a)	11,514		359	Axalta Coating Systems Ltd ^(a)	8,907		246
Under Armour Inc ^(a)	548,678		52,168
				Celanese Corp	1,803		128
VF Corp	19,920		1,345	CF Industries Holdings Inc	19,520		991
	$		113,703	Chemours Co/The	10,045		70
Automobile Manufacturers - 0.41%				Dow Chemical Co/The	19,314		998
Ferrari NV ^(a)	50,360		2,539	Eastman Chemical Co	3,660		264
PACCAR Inc	33,004		1,738	Ecolab Inc	855,005		102,900
Tesla Motors Inc ^(a)	124,620		25,788	EI du Pont de Nemours & Co	39,477		2,503
	$		30,065	FMC Corp	7,947		324
				Huntsman Corp	12,560		165
Automobile Parts & Equipment - 0.35%				International Flavors & Fragrances Inc	6,949		806
Allison Transmission Holdings Inc	10,385		298	LyondellBasell Industries NV	37,688		3,502
BorgWarner Inc	199,350		8,536	Monsanto Co	28,369		2,645
Delphi Automotive PLC	36,586		3,044	NewMarket Corp	828		326
Johnson Controls Inc	8,450		382	Platform Specialty Products Corp ^(a)	2,517		26
Lear Corp	5,541		693	PPG Industries Inc	25,376		2,646
Mobileye NV ^(a)	258,600		11,771	Praxair Inc	14,154		1,572
Visteon Corp ^(a)	4,008		437	RPM International Inc	11,500		526
WABCO Holdings Inc ^(a)	4,906		551	Sherwin-Williams Co/The	4,774		1,274
	$		25,712	Sigma-Aldrich Corp	5,953		832
				Valspar Corp/The	7,119		576

Banks - 1.59%					$		125,804
Bank of New York Mellon Corp/The	20,477		853
Morgan Stanley	2,383,900		78,597	Commercial Services - 1.60%
Signature Bank/New York NY ^(a)	3,915		583	Aaron's Inc	3,049		75
State Street Corp	524,300		36,177	Automatic Data Processing Inc	22,226		1,933
SVB Financial Group ^(a)	2,886		352	Avis Budget Group Inc ^(a)	8,806		440
	$		116,562	Booz Allen Hamilton Holding Corp	9,681		285
				Cintas Corp	8,536		795
Beverages - 0.62%				CoStar Group Inc ^(a)	2,716		551
Brown-Forman Corp - A Shares	2,430		279	Equifax Inc	10,300		1,098
Brown-Forman Corp - B Shares	9,495		1,008	FleetCor Technologies Inc ^(a)	503,952		73,003
Coca-Cola Co/The	233,257		9,878	Gartner Inc ^(a)	7,429		674
Coca-Cola Enterprises Inc	19,734		1,013	Global Payments Inc	5,920		807
Constellation Brands Inc	15,106		2,036	KAR Auction Services Inc	6,089		234
Dr Pepper Snapple Group Inc	35,518		3,174	MasterCard Inc	100,656		9,964


Schedule of Investments
LargeCap Growth Fund I
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Commercial Services (continued)				Diversified Financial Services (continued)
McGraw Hill Financial Inc	16,135	$	1,495	Interactive Brokers Group Inc - A Shares	1,540	$	63
Moody's Corp	10,463		1,006	Intercontinental Exchange Inc	175,837		44,381
Morningstar Inc	2,441		200	Invesco Ltd	4,929		164
PayPal Holdings Inc ^(a)	496,403		17,876	Lazard Ltd	10,610		491
Quanta Services Inc ^(a)	3,993		80	Legg Mason Inc	2,615		117
Robert Half International Inc	12,258		645	LPL Financial Holdings Inc	6,725		287
Rollins Inc	10,277		276	Santander Consumer USA Holdings Inc ^(a)	2,275		41
RR Donnelley & Sons Co	14,003		236	T Rowe Price Group Inc	25,780		1,949
Sabre Corp	10,733		315	TD Ameritrade Holding Corp	704,396		24,281
Service Corp International/US	18,968		536	Visa Inc	3,819,295		296,300
ServiceMaster Global Holdings Inc ^(a)	10,602		378	Waddell & Reed Financial Inc	6,485		240
Total System Services Inc	19,221		1,008		$		496,915
Towers Watson & Co	1,575		195
United Rentals Inc ^(a)	8,025		601	Electric - 0.00%
				Calpine Corp ^(a)	3,443		53
Vantiv Inc ^(a)	12,908		647
Verisk Analytics Inc ^(a)	14,541		1,041	Dominion Resources Inc/VA	2,360		169
Western Union Co/The	45,040		867	ITC Holdings Corp	4,558		149
WEX Inc ^(a)	3,583		322		$		371
	$		117,583	Electrical Components & Equipment - 0.05%
Computers - 5.48%				Acuity Brands Inc	3,854		842
Accenture PLC - Class A	72,266		7,747	AMETEK Inc	20,593		1,129
Apple Inc	1,715,031		204,946	Emerson Electric Co	27,140		1,282
Cadence Design Systems Inc ^(a)	26,660		592	Hubbell Inc	977		95
Cognizant Technology Solutions Corp ^(a)	1,466,661		99,895		$		3,348
DST Systems Inc	2,948		360	Electronics - 2.08%
EMC Corp/MA	81,662		2,141	Allegion PLC	8,946		583
Fortinet Inc ^(a)	12,506		430	Amphenol Corp	1,748,446		94,800
Genpact Ltd ^(a)	3,088,280		76,527
				FLIR Systems Inc	8,597		229
IHS Inc ^(a)	5,270		630
				Gentex Corp	16,383		269
International Business Machines Corp	52,865		7,405	GoPro Inc ^(a)	8,412		210
Jack Henry & Associates Inc	7,576		586	Honeywell International Inc	67,352		6,956
NetApp Inc	9,101		309	Jabil Circuit Inc	4,608		106
Synopsys Inc ^(a)	2,476		124	Keysight Technologies Inc ^(a)	12,955		429
Teradata Corp ^(a)	10,873		306	Mettler-Toledo International Inc ^(a)	2,228		693
VeriFone Systems Inc ^(a)	10,486		316	National Instruments Corp	1,496,987		45,613
	$		402,314	PerkinElmer Inc	1,400		72
				Thermo Fisher Scientific Inc	10,687		1,398
Consumer Products - 0.06%				Trimble Navigation Ltd ^(a)	2,050		47
Avery Dennison Corp	7,746		503
Church & Dwight Co Inc	11,004		947	Tyco International PLC	21,692		790
				Waters Corp ^(a)	6,585		842
Clorox Co/The	6,129		747
Kimberly-Clark Corp	17,279		2,069		$		153,037
Spectrum Brands Holdings Inc	2,677		257	Energy - Alternate Sources - 0.00%
	$		4,523	TerraForm Power Inc	343		6
Cosmetics & Personal Care - 1.63%
Colgate-Palmolive Co	76,147		5,052	Engineering & Construction - 0.01%
Estee Lauder Cos Inc/The	1,424,951		114,652	AECOM ^(a)	2,534		75
	$		119,704	SBA Communications Corp ^(a)	3,761		447
				TopBuild Corp ^(a)	3,838		108
Distribution & Wholesale - 0.98%
Fastenal Co	1,721,254		67,404		$		630
Fossil Group Inc ^(a)	3,049		166	Entertainment - 0.01%
Genuine Parts Co	12,250		1,112	Gaming and Leisure Properties Inc	2,128		62
HD Supply Holdings Inc ^(a)	15,539		463	Regal Entertainment Group	9,402		182
Ingram Micro Inc	2,151		64	Six Flags Entertainment Corp	6,670		347
LKQ Corp ^(a)	26,188		775		$		591
Watsco Inc	2,685		330
WW Grainger Inc	6,926		1,455	Environmental Control - 1.29%
				Clean Harbors Inc ^(a)	4,171		194
	$		71,769
				Stericycle Inc ^(a)	779,409		94,597
Diversified Financial Services - 6.77%				Waste Management Inc	2,267		122
Affiliated Managers Group Inc ^(a)	4,473		806		$		94,913
Alliance Data Systems Corp ^(a)	9,137		2,717
American Express Co	9,882		724	Food - 0.20%
Ameriprise Financial Inc	14,526		1,676	Campbell Soup Co	9,580		487
Artisan Partners Asset Management Inc	3,134		120	ConAgra Foods Inc	3,420		139
BlackRock Inc	3,590		1,264	Flowers Foods Inc	14,897		402
CBOE Holdings Inc	7,367		494	General Mills Inc	35,639		2,071
				Hain Celestial Group Inc/The ^(a)	8,288		413
Charles Schwab Corp/The	3,925,908		119,819
CoreLogic Inc/United States ^(a)	5,181		202	Hershey Co/The	11,972		1,062
Credit Acceptance Corp ^(a)	905		171	Hormel Foods Corp	11,809		798
Eaton Vance Corp	9,836		355	Ingredion Inc	1,601		152
Federated Investors Inc	8,241		253	Kellogg Co	13,249		934
				Kraft Heinz Co/The	48,540		3,785


Schedule of Investments
LargeCap Growth Fund I
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Food (continued)				Home Builders (continued)
Kroger Co/The	58,595	$	2,215	Toll Brothers Inc ^(a)	6,500	$	234
McCormick & Co Inc/MD	10,741		902		$		1,902
Pilgrim's Pride Corp	3,977		75
Sysco Corp	10,919		450	Home Furnishings - 0.02%
Tyson Foods Inc	3,041		135	Harman International Industries Inc	6,121		673
Whole Foods Market Inc	28,119		842	Leggett & Platt Inc	12,815		577
				Tempur Sealy International Inc ^(a)	5,432		423
	$		14,862
				Whirlpool Corp	804		129
Forest Products & Paper - 0.02%					$		1,802
International Paper Co	39,313		1,678
				Housewares - 0.02%
				Newell Rubbermaid Inc	12,575		534
Hand & Machine Tools - 0.03%				Toro Co/The	5,517		415
Lincoln Electric Holdings Inc	6,632		397	Tupperware Brands Corp	4,349		256
Regal Beloit Corp	905		58		$		1,205
Snap-on Inc	5,123		850
Stanley Black & Decker Inc	5,610		594	Insurance - 0.09%
	$		1,899	AmTrust Financial Services Inc	951		65
				Aon PLC	26,435		2,467
Healthcare - Products - 5.94%				Arthur J Gallagher & Co	7,955		348
Align Technology Inc ^(a)	7,034		460	Berkshire Hathaway Inc - Class B ^(a)	11,770		1,601
Baxter International Inc	20,368		762	Erie Indemnity Co	2,460		215
Becton Dickinson and Co	140,643		20,044	Markel Corp ^(a)	180		156
Bio-Techne Corp	1,222		108	Marsh & McLennan Cos Inc	32,434		1,808
Boston Scientific Corp ^(a)	6,160		113		$		6,660
Bruker Corp ^(a)	8,845		162
Cooper Cos Inc/The	2,809		428	Internet - 18.33%
				Alphabet Inc ^(a)	278,204		205,144
CR Bard Inc	6,089		1,135
				Alphabet Inc ^(a)	208,053		147,886
Danaher Corp	2,506,058		233,840
				Amazon.com Inc ^(a)	630,136		394,402
DENTSPLY International Inc	3,830		233
Edwards Lifesciences Corp ^(a)	6,338		996	CDW Corp/DE	11,832		529
Henry Schein Inc ^(a)	7,057		1,071	Dropbox Inc ^{(a),(b),(c),(d)}	52,984		715
				eBay Inc ^(a)	161,654		4,510
Hill-Rom Holdings Inc	5,084		268
Hologic Inc ^(a)	20,895		812	Expedia Inc	8,443		1,151
IDEXX Laboratories Inc ^(a)	7,816		536	F5 Networks Inc ^(a)	7,882		869
Intuitive Surgical Inc ^(a)	343,381		170,523	Facebook Inc ^(a)	2,439,100		248,715
				FireEye Inc ^(a)	11,082		290
Patterson Cos Inc	4,914		233
				Flipkart Online Services Pvt Ltd ^{(a),(b),(c),(d)}	6,882		979
ResMed Inc	12,057		695
Sirona Dental Systems Inc ^(a)	4,836		528	HomeAway Inc ^(a)	3,467		109
St Jude Medical Inc	16,290		1,039	IAC/InterActiveCorp	6,802		456
				Liberty Ventures ^(a)	12,212		532
Stryker Corp	10,091		965
Varian Medical Systems Inc ^(a)	8,567		673	LinkedIn Corp ^(a)	169,246		40,767
VWR Corp ^(a)	1,978		54	Netflix Inc ^(a)	105,290		11,411
				Priceline Group Inc/The ^(a)	101,269		147,270
Zimmer Biomet Holdings Inc	619		65
				Splunk Inc ^(a)	10,269		577
	$		435,743
				Tencent Holdings Ltd ADR	1,298,100		24,495
Healthcare - Services - 3.50%				TripAdvisor Inc ^(a)	1,355,875		113,595
Acadia Healthcare Co Inc ^(a)	4,449		273	VeriSign Inc ^(a)	9,224		743
Aetna Inc	9,441		1,084		$		1,345,145
Anthem Inc	370,389		51,540
Centene Corp ^(a)	10,416		619	Iron & Steel - 0.00%
Cigna Corp	192,621		25,819	Steel Dynamics Inc	3,434		63
DaVita HealthCare Partners Inc ^(a)	1,005,455		77,933
Envision Healthcare Holdings Inc ^(a)	15,810		446

HCA Holdings Inc ^(a)	5,308		365	Leisure Products & Services - 0.36%
				Brunswick Corp/DE	6,833		368
Health Net Inc/CA ^(a)	1,627		104	Harley-Davidson Inc	9,464		468
Humana Inc	170,372		30,434	Jarden Corp ^(a)	18,279		819
Laboratory Corp of America Holdings ^(a)	3,111		382	Norwegian Cruise Line Holdings Ltd ^(a)	10,880		692
LifePoint Health Inc ^(a)	1,067		73	Polaris Industries Inc	5,688		639
MEDNAX Inc ^(a)	4,960		349
				Royal Caribbean Cruises Ltd	240,300		23,633
Premier Inc ^(a)	4,813		163
					$		26,619
Tenet Healthcare Corp ^(a)	8,853		278
UnitedHealth Group Inc	565,935		66,656	Lodging - 1.39%
Universal Health Services Inc	1,725		211	Choice Hotels International Inc	4,530		237
	$		256,729	Hilton Worldwide Holdings Inc	1,955,898		48,878
				Las Vegas Sands Corp	21,545		1,067
Holding Companies - Diversified - 0.00%				Marriott International Inc/MD	12,351		948
Leucadia National Corp	3,900		78	MGM Resorts International ^(a)	2,113,632		49,015
				Starwood Hotels & Resorts Worldwide Inc	14,293		1,142
Home Builders - 0.03%				Wyndham Worldwide Corp	10,478		852
DR Horton Inc	13,388		394		$		102,139
Lennar Corp - A Shares	6,082		305	Machinery - Construction & Mining - 0.01%
Lennar Corp - B Shares	1,841		76	Caterpillar Inc	10,958		800
NVR Inc ^(a)	379		621
Thor Industries Inc	5,038		272


Schedule of Investments
LargeCap Growth Fund I
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Machinery - Diversified - 0.80%				Oil & Gas Services - 0.94%
Cognex Corp	8,211	$	309	FMC Technologies Inc ^(a)	2,014,723	$	68,158
Cummins Inc	14,038		1,453	Oceaneering International Inc	2,209		93
Deere & Co	3,544		276	RPC Inc	917		10
Flowserve Corp	516,649		23,952	Schlumberger Ltd	9,054		708
Graco Inc	5,734		421	Targa Resources Corp	2,337		133
IDEX Corp	6,562		504		$		69,102
Middleby Corp/The ^(a)	5,177		605
Nordson Corp	5,657		403	Packaging & Containers - 0.05%
Rockwell Automation Inc	14,734		1,608	Ball Corp	11,709		802
Roper Technologies Inc	2,267		422	Bemis Co Inc	2,050		94
				Crown Holdings Inc ^(a)	5,974		317
Wabtec Corp/DE	345,766		28,654
Zebra Technologies Corp ^(a)	4,473		344	Graphic Packaging Holding Co	19,076		270
				Owens-Illinois Inc ^(a)	1,302		28
	$		58,951
				Packaging Corp of America	8,443		578
Media - 0.53%				Sealed Air Corp	17,846		876
AMC Networks Inc ^(a)	5,827		431	Silgan Holdings Inc	4,008		204
Cablevision Systems Corp	4,867		159	WestRock Co	7,847		422
CBS Corp	29,005		1,349		$		3,591
Comcast Corp - Class A	173,876		10,888
Comcast Corp - Special Class A	20,291		1,272	Pharmaceuticals - 8.12%
Discovery Communications Inc - A Shares ^(a)	11,786		347	AbbVie Inc	140,675		8,377
				Agios Pharmaceuticals Inc ^(a)	2,058		150
Discovery Communications Inc - C Shares ^(a)	20,879		575
				Akorn Inc ^(a)	6,245		167
DISH Network Corp ^(a)	12,335		777
				Alkermes PLC ^(a)	9,805		705
FactSet Research Systems Inc	5,053		885	Allergan PLC ^(a)	305,135		94,125
Scripps Networks Interactive Inc	8,303		499
Sirius XM Holdings Inc ^(a)	198,233		809	AmerisourceBergen Corp	20,698		1,998
Starz ^(a)	8,489		284	Baxalta Inc	27,527		949
Time Warner Cable Inc	16,829		3,187	Bristol-Myers Squibb Co	2,113,240		139,368
Time Warner Inc	25,411		1,914	Cardinal Health Inc	30,370		2,496
Twenty-First Century Fox Inc - A Shares	50,241		1,542	Eli Lilly & Co	493,654		40,268
				Endo International PLC ^(a)	5,989		359
Twenty-First Century Fox Inc - B Shares	28,572		882	Express Scripts Holding Co ^(a)	1,472,020		127,153
Viacom Inc	1,319		68	Herbalife Ltd ^(a)	6,353		356
Viacom Inc	28,350		1,398	Jazz Pharmaceuticals PLC ^(a)	4,867		668
Walt Disney Co/The	100,929		11,480
				Johnson & Johnson	28,811		2,911
	$		38,746	Mallinckrodt PLC ^(a)	3,668		241
Metal Fabrication & Hardware - 0.01%				McKesson Corp	201,363		36,003
Precision Castparts Corp	1,555		359	Mead Johnson Nutrition Co	1,212,322		99,410
Valmont Industries Inc	163		18	Merck & Co Inc	25,654		1,402
	$		377	Mylan NV ^(a)	28,386		1,252
				OPKO Health Inc ^(a)	24,106		228
Mining - 0.00%				Perrigo Co PLC	2,159		341
Compass Minerals International Inc	3,087		251	Quintiles Transnational Holdings Inc ^(a)	5,974		380
Tahoe Resources Inc	2,621		22	Valeant Pharmaceuticals International Inc ^(a)	366,220		34,340
	$		273	VCA Inc ^(a)	7,174		393
Miscellaneous Manufacturers - 1.14%				Zoetis Inc	39,824		1,713
3M Co	37,729		5,931		$		595,753
AO Smith Corp	7,127		548	Pipelines - 0.04%
AptarGroup Inc	1,718		126	ONEOK Inc	7,785		264
Carlisle Cos Inc	1,815		158	Williams Cos Inc/The	61,542		2,427
Colfax Corp ^(a)	1,496,441		40,344
					$		2,691
Donaldson Co Inc	11,151		337
Illinois Tool Works Inc	29,533		2,715	Real Estate - 0.02%
Ingersoll-Rand PLC	1,091		65	CBRE Group Inc ^(a)	24,184		902
Parker-Hannifin Corp	5,556		582	Jones Lang LaSalle Inc	2,909		485
Textron Inc	786,340		33,160	Realogy Holdings Corp ^(a)	5,099		199
	$		83,966		$		1,586

Office & Business Equipment - 0.00%				REITS - 0.28%
Pitney Bowes Inc	9,978		206	American Tower Corp	25,250		2,581
				Boston Properties Inc	15,176		1,910
				Columbia Property Trust Inc	1,953		49

Oil & Gas - 0.41%				Crown Castle International Corp	19,672		1,681
Cabot Oil & Gas Corp	33,618		730
				Digital Realty Trust Inc	6,794		502
Cimarex Energy Co	211,070		24,919
Continental Resources Inc/OK ^(a)	2,561		87	Empire State Realty Trust Inc	6,706		120
				Equinix Inc	5,363		1,591
CVR Energy Inc	693		31
				Equity LifeStyle Properties Inc	7,491		453
EOG Resources Inc	4,860		417
				Extra Space Storage Inc	10,370		822
HollyFrontier Corp	2,546		125
				Federal Realty Investment Trust	5,765		827
Marathon Petroleum Corp	5,207		270
Murphy USA Inc ^(a)	1,795		110	Healthcare Trust of America Inc	1,567		41
				Iron Mountain Inc	7,135		219
Pioneer Natural Resources Co	22,500		3,086
				Lamar Advertising Co	7,204		407
Range Resources Corp	1,430		43
				Omega Healthcare Investors Inc	4,937		170
Tesoro Corp	985		105
				Plum Creek Timber Co Inc	6,291		256
	$		29,923


Schedule of Investments
LargeCap Growth Fund I
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

REITS (continued)				Semiconductors (continued)
Post Properties Inc	2,355	$	141	KLA-Tencor Corp	12,985	$	872
Public Storage	14,074		3,229	Lam Research Corp	9,720		744
Simon Property Group Inc	18,523		3,732	Linear Technology Corp	20,167		896
Tanger Factory Outlet Centers Inc	8,760		306	Maxim Integrated Products Inc	9,402		385
Taubman Centers Inc	2,406		185	Microchip Technology Inc	17,381		839
Welltower Inc	19,393		1,258	Micron Technology Inc ^(a)	27,806		460
Weyerhaeuser Co	4,728		139	NXP Semiconductors NV ^(a)	1,068,554		83,721
	$		20,619	ON Semiconductor Corp ^(a)	34,701		382
				Qorvo Inc ^(a)	12,575		552
Retail - 6.76%				QUALCOMM Inc	14,603		868
Advance Auto Parts Inc	6,206		1,232	Skyworks Solutions Inc	11,260		870
AutoNation Inc ^(a)	7,127		450
AutoZone Inc ^(a)	1,841		1,444	Texas Instruments Inc	118,665		6,731
Bed Bath & Beyond Inc ^(a)	14,866		887	Xilinx Inc	5,889		280
					$		113,430
Brinker International Inc	6,330		288
CarMax Inc ^(a)	312,512		18,442	Shipbuilding - 0.01%
Chipotle Mexican Grill Inc ^(a)	39,416		25,235	Huntington Ingalls Industries Inc	4,612		553
Coach Inc	4,942		154
Copart Inc ^(a)	12,057		437
				Software - 7.70%
Costco Wholesale Corp	709,292		112,153	Adobe Systems Inc ^(a)	29,860		2,647
CVS Health Corp	100,053		9,883	Akamai Technologies Inc ^(a)	1,363,296		82,915
Darden Restaurants Inc	3,211		199	Allscripts Healthcare Solutions Inc ^(a)	8,211		115
Dick's Sporting Goods Inc	6,740		300	ANSYS Inc ^(a)	644,787		61,455
Dillard's Inc	944		85	Autodesk Inc ^(a)	14,208		784
Dollar General Corp	40,281		2,730	Black Knight Financial Services Inc ^(a)	3,312		119
Dollar Tree Inc ^(a)	32,989		2,160
				Broadridge Financial Solutions Inc	10,958		653
Domino's Pizza Inc	5,053		539
				CDK Global Inc	13,906		692
DSW Inc	2,948		74	Cerner Corp ^(a)	17,660		1,171
Dunkin' Brands Group Inc	8,597		356	Citrix Systems Inc ^(a)	13,721		1,127
Foot Locker Inc	13,582		920
				Dun & Bradstreet Corp/The	1,393		159
Gap Inc/The	21,313		580	Electronic Arts Inc ^(a)	52,923		3,814
GNC Holdings Inc	8,365		249
				Fidelity National Information Services Inc	7,204		525
Home Depot Inc/The	116,809		14,442	Fiserv Inc ^(a)	39,457		3,808
L Brands Inc	14,587		1,400	IMS Health Holdings Inc ^(a)	12,065		328
Liberty Interactive Corp QVC Group ^(a)	18,705		512
				Inovalon Holdings Inc ^(a)	3,869		89
Lowe's Cos Inc	734,434		54,224
lululemon athletica Inc ^(a)	9,271		456	Intuit Inc	16,251		1,583
				King Digital Entertainment PLC	10,278		154
Macy's Inc	39,297		2,003
				Microsoft Corp	1,652,247		86,975
McDonald's Corp	57,012		6,400
Michaels Cos Inc/The ^(a)	8,017		187	MSCI Inc	9,720		651
				NetSuite Inc ^(a)	777,951		66,181
Nordstrom Inc	12,289		801
				Oracle Corp	201,093		7,811
Nu Skin Enterprises Inc	2,182		83
O'Reilly Automotive Inc ^(a)	13,162		3,636	Paychex Inc	23,545		1,215
				PTC Inc ^(a)	10,641		377
Panera Bread Co ^(a)	2,399		426
				Rackspace Hosting Inc ^(a)	11,461		296
Penske Automotive Group Inc	2,847		139	Red Hat Inc ^(a)	421,885		33,375
Rite Aid Corp ^(a)	55,356		436
				salesforce.com inc ^(a)	2,064,769		160,454
Ross Stores Inc	57,988		2,933	ServiceNow Inc ^(a)	372,175		30,388
Sally Beauty Holdings Inc ^(a)	15,238		358
				SolarWinds Inc ^(a)	7,011		407
Signet Jewelers Ltd	6,988		1,055
				SS&C Technologies Holdings Inc	6,663		494
Starbucks Corp	2,853,694		178,555	Tableau Software Inc ^(a)	4,256		357
Target Corp	22,578		1,743	Ultimate Software Group Inc/The ^(a)	2,491		509
Tiffany & Co	7,243		597	Veeva Systems Inc ^(a)	6,910		175
TJX Cos Inc/The	40,534		2,967	VMware Inc ^(a)	7,174		432
Tractor Supply Co	411,657		38,033	Workday Inc ^(a)	164,467		12,988
Ulta Salon Cosmetics & Fragrance Inc ^(a)	5,641		981
Urban Outfitters Inc ^(a)	8,923		255		$		565,223
Vista Outdoor Inc ^(a)	1,826		82	Telecommunications - 0.66%
Walgreens Boots Alliance Inc	27,289		2,311	Arista Networks Inc ^(a)	3,397		219
Williams-Sonoma Inc	8,257		609	ARRIS Group Inc ^(a)	2,903		82
World Fuel Services Corp	1,670		74	AT&T Inc	52,748		1,767
Yum! Brands Inc	25,840		1,832	CommScope Holding Co Inc ^(a)	5,177		168
	$		496,327	Juniper Networks Inc	7,591		238
				Level 3 Communications Inc ^(a)	3,234		165
Semiconductors - 1.55%
				Motorola Solutions Inc	17,095		1,196
Altera Corp	5,517		290	Palo Alto Networks Inc ^(a)	83,200		13,395
Analog Devices Inc	16,909		1,017	T-Mobile US Inc ^(a)	541,700		20,525
Applied Materials Inc	42,974		721
				Verizon Communications Inc	225,142		10,555
ASML Holding NV - NY Reg Shares	87,700		8,138	Zayo Group Holdings Inc ^(a)	10,509		279
Atmel Corp	35,784		272
Avago Technologies Ltd	17,008		2,094		$		48,589
Broadcom Corp	2,375		122	Textiles - 0.01%
Freescale Semiconductor Ltd ^(a)	9,472		317	Mohawk Industries Inc ^(a)	3,854		753
Intel Corp	76,194		2,580
IPG Photonics Corp ^(a)	3,374		279


Schedule of Investments
LargeCap Growth Fund I
October 31, 2015



COMMON STOCKS (continued)		Shares Held		Value(000	's)	Portfolio Summary (unaudited)
						Sector	Percent

Toys, Games & Hobbies - 0.01%						Consumer, Non-cyclical	27.96	%
Hasbro Inc		8,249		$ 634
						Communications	20.04	%
						Technology	14.71	%
Transportation - 0.99%						Consumer, Cyclical	13.18	%
Canadian Pacific Railway Ltd		180,300		25,332		Industrial	9.17	%
CH Robinson Worldwide Inc		12,807		889		Financial	8.75	%
CSX Corp		32,598		880		Exchange Traded Funds	3.34	%
Expeditors International of Washington Inc		16,847		839		Basic Materials	1.73	%
FedEx Corp		209,551		32,700		Energy	1.39	%
Genesee & Wyoming Inc ^(a)		1,841		124		Diversified	0.00	%
JB Hunt Transport Services Inc		8,187		625		Utilities	0.00	%
Landstar System Inc		4,689		296		Liabilities in Excess of Other Assets, Net	(0.27	)%
Old Dominion Freight Line Inc ^(a)		6,578		407		TOTAL NET ASSETS	100.00	%
Teekay Corp		2,312		74
Union Pacific Corp		73,522		6,569
United Parcel Service Inc		41,728		4,299
			$	73,034
TOTAL COMMON STOCKS			$	7,081,303
INVESTMENT COMPANIES - 3.34%		Shares Held		Value(000	's)

Publicly Traded Investment Fund - 3.34%
Cash Account Trust - Government & Agency		3,220,995		3,221
Portfolio - Government Cash Managed
First American Government Obligations Fund		182,083,955		182,084
Morgan Stanley Institutional Liquidity Funds -		60,042,452		60,042
Government Portfolio
			$	245,347
TOTAL INVESTMENT COMPANIES			$	245,347
CONVERTIBLE PREFERRED STOCKS -
0.39	%	Shares Held		Value(000	's)

Internet - 0.39%
Airbnb Inc - Series D ^{(a),(b),(c),(d)}		121,527		11,314
Airbnb Inc - Series E ^{(a),(b),(c),(d)}		29,361		2,733
Dropbox Inc ^{(a),(b),(c),(d)}		254,085		4,235
Flipkart Online Services Pvt Ltd Series A		2,350		334
(a),(b),(c),(d)
Flipkart Online Services Pvt Ltd Series C		4,148		590
(a),(b),(c),(d)
Flipkart Online Services Pvt Ltd Series E		7,712		1,097
(a),(b),(c),(d)
Uber Technologies Inc ^{(a),(b),(c),(d)}		209,292		7,907
			$	28,210
TOTAL CONVERTIBLE PREFERRED STOCKS			$	28,210
PREFERRED STOCKS - 0.07%		Shares Held		Value(000	's)

Internet - 0.07%
Flipkart Online Services Pvt Ltd Series G		34,940		4,970
(a),(b),(c),(d)

TOTAL PREFERRED STOCKS			$	4,970
Total Investments			$	7,359,830
Liabilities in Excess of Other Assets, Net - (0.27)%			$	(19,542	)
TOTAL NET ASSETS - 100.00%			$	7,340,288


COMMON STOCKS - 98.00%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.24%				Beverages - 2.23%
Interpublic Group of Cos Inc/The	107,742	$	2,471	Brown-Forman Corp - B Shares	27,856	$	2,958
Nielsen Holdings PLC	96,311		4,576	Coca-Cola Co/The	1,027,803		43,527
Omnicom Group Inc	63,781		4,778	Coca-Cola Enterprises Inc	55,330		2,841
	$		11,825	Constellation Brands Inc	45,151		6,086
				Dr Pepper Snapple Group Inc	50,113		4,479
Aerospace & Defense - 2.04%				Keurig Green Mountain Inc	31,546		1,601
Boeing Co/The	167,684		24,829	Molson Coors Brewing Co	41,490		3,655
General Dynamics Corp	79,641		11,833	Monster Beverage Corp ^(a)	39,922		5,442
Harris Corp	32,572		2,577	PepsiCo Inc	385,653		39,410
L-3 Communications Holdings Inc	21,089		2,666		$		109,999
Lockheed Martin Corp	70,111		15,412
Northrop Grumman Corp	49,196		9,237	Biotechnology - 2.95%
Raytheon Co	79,690		9,356	Alexion Pharmaceuticals Inc ^(a)	59,372		10,449
Rockwell Collins Inc	34,593		3,000	Amgen Inc	199,062		31,488
United Technologies Corp	217,441		21,398	Biogen Inc ^(a)	58,483		16,990
	$		100,308	Celgene Corp ^(a)	207,540		25,467
				Gilead Sciences Inc	385,289		41,661
Agriculture - 1.72%				Regeneron Pharmaceuticals Inc ^(a)	20,298		11,314
Altria Group Inc	514,740		31,126	Vertex Pharmaceuticals Inc ^(a)	64,229		8,012
Archer-Daniels-Midland Co	159,864		7,299		$		145,381
Philip Morris International Inc	406,706		35,953
Reynolds American Inc	217,605		10,515	Building Materials - 0.18%
	$		84,893	Martin Marietta Materials Inc	17,589		2,729
				Masco Corp	90,297		2,618
Airlines - 0.67%				Vulcan Materials Co	34,965		3,377
American Airlines Group Inc	176,372		8,152		$		8,724
Delta Air Lines Inc	208,815		10,616
Southwest Airlines Co	173,100		8,013	Chemicals - 2.17%
United Continental Holdings Inc ^(a)	99,173		5,981	Air Products & Chemicals Inc	50,795		7,060
	$		32,762	Airgas Inc	17,638		1,696
				CF Industries Holdings Inc	61,181		3,106
Apparel - 0.83%				Dow Chemical Co/The	304,035		15,709
Hanesbrands Inc	105,662		3,375	Eastman Chemical Co	39,028		2,817
Michael Kors Holdings Ltd ^(a)	50,778		1,962
				Ecolab Inc	69,723		8,391
NIKE Inc	177,967		23,319	EI du Pont de Nemours & Co	237,546		15,060
Ralph Lauren Corp	15,690		1,738	FMC Corp	35,077		1,428
Under Armour Inc ^(a)	47,245		4,492
				International Flavors & Fragrances Inc	21,156		2,455
VF Corp	89,394		6,036	LyondellBasell Industries NV	97,844		9,091
	$		40,922	Monsanto Co	122,820		11,449
Automobile Manufacturers - 0.68%				Mosaic Co/The	88,514		2,991
Ford Motor Co	1,023,073		15,152	PPG Industries Inc	71,072		7,410
General Motors Co	378,419		13,211	Praxair Inc	75,207		8,355
PACCAR Inc	93,189		4,906	Sherwin-Williams Co/The	20,800		5,550
	$		33,269	Sigma-Aldrich Corp	31,353		4,381
					$		106,949
Automobile Parts & Equipment - 0.38%
BorgWarner Inc	59,414		2,544	Coal - 0.01%
Delphi Automotive PLC	74,649		6,210	CONSOL Energy Inc	60,120		400
Goodyear Tire & Rubber Co/The	70,725		2,323
Johnson Controls Inc	171,712		7,758	Commercial Services - 1.63%
	$		18,835	ADT Corp/The	44,612		1,474
				Automatic Data Processing Inc	122,288		10,638
Banks - 7.08%
				Cintas Corp	23,436		2,182
Bank of America Corp	2,748,301		46,116
				Equifax Inc	31,042		3,308
Bank of New York Mellon Corp/The	290,493		12,099
				H&R Block Inc	61,857		2,305
BB&T Corp	204,669		7,603
				MasterCard Inc	262,003		25,936
Capital One Financial Corp	142,403		11,236
				McGraw Hill Financial Inc	71,539		6,627
Citigroup Inc	790,173		42,014
				Moody's Corp	45,748		4,399
Comerica Inc	46,711		2,027	PayPal Holdings Inc ^(a)	291,158		10,485
Fifth Third Bancorp	210,876		4,017	Quanta Services Inc ^(a)	53,597		1,078
Goldman Sachs Group Inc/The	105,686		19,816
				Robert Half International Inc	35,310		1,859
Huntington Bancshares Inc/OH	210,828		2,313
				Total System Services Inc	44,428		2,330
JPMorgan Chase & Co	970,851		62,377	United Rentals Inc ^(a)	25,037		1,874
KeyCorp	220,750		2,742	Verisk Analytics Inc ^(a)	40,637		2,910
M&T Bank Corp	34,978		4,192
				Western Union Co/The	134,265		2,585
Morgan Stanley	400,000		13,188
Northern Trust Corp	57,462		4,045		$		79,990
PNC Financial Services Group Inc/The	134,835		12,170	Computers - 5.77%
Regions Financial Corp	347,827		3,252	Accenture PLC - Class A	163,853		17,565
State Street Corp	107,141		7,393	Apple Inc	1,497,132		178,907
SunTrust Banks Inc	136,002		5,647	Cognizant Technology Solutions Corp ^(a)	160,019		10,899
US Bancorp	434,576		18,330	Computer Sciences Corp	36,316		2,418
Wells Fargo & Co	1,226,368		66,396	EMC Corp/MA	505,297		13,249
Zions Bancorporation	53,600		1,542	Hewlett-Packard Co	474,237		12,785
	$		348,515	International Business Machines Corp	236,583		33,141


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Computers (continued)				Electrical Components & Equipment (continued)
NetApp Inc	78,780	$	2,678	Emerson Electric Co	172,518	$	8,148
SanDisk Corp	53,671		4,133		$		11,633
Seagate Technology PLC	79,292		3,018
Teradata Corp ^(a)	37,174		1,045	Electronics - 1.37%
Western Digital Corp	60,487		4,042	Agilent Technologies Inc	87,003		3,285
	$		283,880	Allegion PLC	25,153		1,639
				Amphenol Corp	81,160		4,401
Consumer Products - 0.35%				Corning Inc	321,844		5,986
Avery Dennison Corp	24,005		1,560	FLIR Systems Inc	36,819		982
Clorox Co/The	33,772		4,118	Garmin Ltd	31,078		1,102
Kimberly-Clark Corp	95,632		11,448	Honeywell International Inc	205,235		21,197
	$		17,126	PerkinElmer Inc	29,766		1,537
				TE Connectivity Ltd	105,637		6,807
Cosmetics & Personal Care - 1.52%				Thermo Fisher Scientific Inc	104,614		13,682
Colgate-Palmolive Co	236,311		15,679	Tyco International PLC	110,660		4,033
Estee Lauder Cos Inc/The	59,295		4,771	Waters Corp ^(a)	21,598		2,760
Procter & Gamble Co/The	712,127		54,392		$		67,411
	$		74,842
				Energy - Alternate Sources - 0.02%
Distribution & Wholesale - 0.21%				First Solar Inc ^(a)	19,867		1,134
Fastenal Co	76,176		2,983
Fossil Group Inc ^(a)	10,870		592
Genuine Parts Co	39,798		3,612	Engineering & Construction - 0.06%
WW Grainger Inc	15,934		3,346	Fluor Corp	38,051		1,819
	$		10,533	Jacobs Engineering Group Inc ^(a)	32,500		1,305
					$		3,124
Diversified Financial Services - 2.68%
Affiliated Managers Group Inc ^(a)	14,251		2,569	Environmental Control - 0.23%
Alliance Data Systems Corp ^(a)	16,127		4,795	Republic Services Inc	63,204		2,765
American Express Co	223,436		16,369	Stericycle Inc ^(a)	22,271		2,703
Ameriprise Financial Inc	46,788		5,397	Waste Management Inc	110,417		5,936
BlackRock Inc	33,633		11,838		$		11,404
Charles Schwab Corp/The	314,304		9,593

CME Group Inc/IL	88,670		8,377	Food - 1.76%
				Campbell Soup Co	47,282		2,401
Discover Financial Services	114,280		6,425
E*TRADE Financial Corp ^(a)	76,179		2,172	ConAgra Foods Inc	113,343		4,596
				General Mills Inc	157,186		9,134
Franklin Resources Inc	101,521		4,138
				Hershey Co/The	38,346		3,401
Intercontinental Exchange Inc	29,006		7,321
				Hormel Foods Corp	35,383		2,390
Invesco Ltd	112,551		3,733
				JM Smucker Co/The	31,388		3,685
Legg Mason Inc	28,801		1,289
				Kellogg Co	66,834		4,713
Nasdaq Inc	31,044		1,797
				Kraft Heinz Co/The	156,018		12,165
Navient Corp	98,194		1,295
				Kroger Co/The	255,027		9,640
T Rowe Price Group Inc	67,263		5,086
				McCormick & Co Inc/MD	30,444		2,557
Visa Inc	512,296		39,744
				Mondelez International Inc	423,015		19,526
	$		131,938	Sysco Corp	145,250		5,992
Electric - 2.63%				Tyson Foods Inc	79,903		3,544
AES Corp/VA	179,262		1,963	Whole Foods Market Inc	93,948		2,815
Ameren Corp	63,698		2,782		$		86,559
American Electric Power Co Inc	128,786		7,296

CMS Energy Corp	72,633		2,620	Forest Products & Paper - 0.10%
				International Paper Co	109,669		4,682
Consolidated Edison Inc	76,887		5,055
Dominion Resources Inc/VA	156,027		11,145
DTE Energy Co	47,117		3,844	Gas - 0.24%
Duke Energy Corp	180,706		12,915	AGL Resources Inc	31,526		1,971
Edison International	85,534		5,177	CenterPoint Energy Inc	112,956		2,095
Entergy Corp	47,131		3,212	NiSource Inc	83,447		1,599
Eversource Energy	83,267		4,242	Sempra Energy	61,830		6,332
Exelon Corp	226,200		6,316		$		11,997
FirstEnergy Corp	110,906		3,460
NextEra Energy Inc	120,834		12,405	Hand & Machine Tools - 0.14%
NRG Energy Inc	86,806		1,119	Snap-on Inc	15,271		2,533
Pepco Holdings Inc	66,542		1,772	Stanley Black & Decker Inc	40,229		4,264
PG&E Corp	128,420		6,858		$		6,797
Pinnacle West Capital Corp	29,091		1,848	Healthcare - Products - 2.04%
PPL Corp	175,886		6,050	Baxter International Inc	143,220		5,355
Public Service Enterprise Group Inc	132,803		5,483	Becton Dickinson and Co	55,197		7,867
SCANA Corp	37,519		2,222	Boston Scientific Corp ^(a)	352,828		6,450
Southern Co/The	238,488		10,756	CR Bard Inc	19,479		3,630
TECO Energy Inc	61,751		1,667	Danaher Corp	156,109		14,566
WEC Energy Group Inc	82,876		4,273	DENTSPLY International Inc	36,703		2,233
Xcel Energy Inc	133,157		4,744	Edwards Lifesciences Corp ^(a)	28,226		4,436
	$		129,224	Henry Schein Inc ^(a)	21,894		3,322
				Intuitive Surgical Inc ^(a)	9,718		4,826
Electrical Components & Equipment - 0.24%
AMETEK Inc	63,575		3,485	Medtronic PLC	371,266		27,444


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Healthcare - Products (continued)				Internet (continued)
Patterson Cos Inc	22,796	$	1,080	TripAdvisor Inc ^(a)	29,643	$	2,484
St Jude Medical Inc	73,966		4,720	VeriSign Inc ^(a)	26,219		2,113
Stryker Corp	83,040		7,940	Yahoo! Inc ^(a)	227,371		8,099
Varian Medical Systems Inc ^(a)	25,916		2,035		$		296,540
Zimmer Biomet Holdings Inc	44,847		4,690
	$		100,594	Iron & Steel - 0.07%
				Nucor Corp	83,904		3,549
Healthcare - Services - 1.71%
Aetna Inc	91,517		10,504

Anthem Inc	68,674		9,556	Leisure Products & Services - 0.28%
				Carnival Corp	121,523		6,572
Cigna Corp	67,600		9,061
DaVita HealthCare Partners Inc ^(a)	44,694		3,464	Harley-Davidson Inc	54,072		2,674
HCA Holdings Inc ^(a)	83,930		5,774	Royal Caribbean Cruises Ltd	45,038		4,429
Humana Inc	38,892		6,947		$		13,675
Laboratory Corp of America Holdings ^(a)	26,410		3,242	Lodging - 0.24%
Quest Diagnostics Inc	37,686		2,561	Marriott International Inc/MD	52,352		4,020
Tenet Healthcare Corp ^(a)	26,138		820	Starwood Hotels & Resorts Worldwide Inc	44,729		3,572
UnitedHealth Group Inc	250,338		29,485	Wyndham Worldwide Corp	31,007		2,522
Universal Health Services Inc	24,083		2,940	Wynn Resorts Ltd	21,325		1,492
	$		84,354		$		11,606

Holding Companies - Diversified - 0.04%				Machinery - Construction & Mining - 0.23%
Leucadia National Corp	88,544		1,772	Caterpillar Inc	158,208		11,548


Home Builders - 0.13%				Machinery - Diversified - 0.47%
DR Horton Inc	85,698		2,523	Cummins Inc	43,617		4,515
Lennar Corp - A Shares	45,663		2,286	Deere & Co	81,845		6,384
PulteGroup Inc	84,282		1,545	Flowserve Corp	35,013		1,623
	$		6,354	Rockwell Automation Inc	35,206		3,843
				Roper Technologies Inc	26,427		4,924

Home Furnishings - 0.14%				Xylem Inc/NY	47,648		1,735
Harman International Industries Inc	18,684		2,054
Leggett & Platt Inc	35,921		1,618		$		23,024
Whirlpool Corp	20,587		3,297	Media - 3.06%
	$		6,969	Cablevision Systems Corp	58,370		1,902
				CBS Corp	116,670		5,427

Housewares - 0.06%				Comcast Corp - Class A	555,193		34,766
Newell Rubbermaid Inc	70,305		2,983
				Comcast Corp - Special Class A	96,662		6,062
				Discovery Communications Inc - A Shares ^(a)	39,196		1,154
Insurance - 3.97%				Discovery Communications Inc - C Shares ^(a)	67,687		1,863
ACE Ltd	85,008		9,652	News Corp	28,300		438
Aflac Inc	113,069		7,208	News Corp	100,023		1,540
Allstate Corp/The	105,114		6,505	Scripps Networks Interactive Inc	24,730		1,486
American International Group Inc	339,683		21,420	TEGNA Inc	59,455		1,608
Aon PLC	73,519		6,860	Time Warner Cable Inc	74,289		14,070
Assurant Inc	17,541		1,430	Time Warner Inc	214,114		16,131
Berkshire Hathaway Inc - Class B ^(a)	491,822		66,898	Twenty-First Century Fox Inc - A Shares	320,532		9,837
Chubb Corp/The	59,588		7,708	Twenty-First Century Fox Inc - B Shares	113,203		3,496
Cincinnati Financial Corp	38,771		2,335	Viacom Inc	91,218		4,498
Genworth Financial Inc ^(a)	130,587		611	Walt Disney Co/The	407,663		46,368
Hartford Financial Services Group Inc/The	108,909		5,038		$		150,646
Lincoln National Corp	65,882		3,525
Loews Corp	75,302		2,746	Metal Fabrication & Hardware - 0.17%
Marsh & McLennan Cos Inc	139,138		7,756	Precision Castparts Corp	36,097		8,332
MetLife Inc	293,214		14,772
Progressive Corp/The	153,824		5,096	Mining - 0.19%
Prudential Financial Inc	118,400		9,768	Alcoa Inc	343,861		3,071
Torchmark Corp	30,547		1,772	Freeport-McMoRan Inc	298,230		3,510
Travelers Cos Inc/The	81,700		9,223	Newmont Mining Corp	138,892		2,703
Unum Group	64,761		2,244		$		9,284
XL Group PLC	79,366		3,022
	$		195,589	Miscellaneous Manufacturers - 2.71%
				3M Co	164,013		25,784
Internet - 6.02%				Dover Corp	41,076		2,647
Alphabet Inc ^(a)	76,103		56,118	Eaton Corp PLC	122,732		6,862
Alphabet Inc ^(a)	77,650		55,194	General Electric Co	2,650,610		76,656
Amazon.com Inc ^(a)	100,685		63,019	Illinois Tool Works Inc	86,498		7,953
eBay Inc ^(a)	294,235		8,209	Ingersoll-Rand PLC	69,662		4,128
Expedia Inc	26,265		3,580	Parker-Hannifin Corp	36,339		3,805
F5 Networks Inc ^(a)	18,640		2,054	Pentair PLC	47,270		2,643
Facebook Inc ^(a)	593,247		60,493	Textron Inc	72,568		3,060
Netflix Inc ^(a)	111,838		12,121		$		133,538
Priceline Group Inc/The ^(a)	13,310		19,356
Symantec Corp	179,615		3,700	Office & Business Equipment - 0.07%
				Pitney Bowes Inc	53,009		1,094


Schedule of Investments
LargeCap S&P 500 Index Fund
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Office & Business Equipment (continued)				Pipelines (continued)
Xerox Corp	263,754	$	2,477	ONEOK Inc	54,912	$	1,863
	$		3,571	Spectra Energy Corp	176,252		5,035
				Williams Cos Inc/The	179,107		7,064
Oil & Gas - 5.35%					$		28,599
Anadarko Petroleum Corp	133,368		8,920
Apache Corp	99,232		4,677	Publicly Traded Investment Fund - 0.33%
Cabot Oil & Gas Corp	108,636		2,359	iShares Core S&P 500 ETF	77,069		16,111
Chesapeake Energy Corp	135,761		968
Chevron Corp	494,010		44,896
				Real Estate - 0.06%
Cimarex Energy Co	24,797		2,928	CBRE Group Inc ^(a)	76,098		2,837
ConocoPhillips	323,819		17,276
Devon Energy Corp	101,425		4,253
Diamond Offshore Drilling Inc	16,923		336	REITS - 2.55%
Ensco PLC	61,891		1,029	American Tower Corp	111,123		11,360
EOG Resources Inc	144,173		12,377	Apartment Investment & Management Co	41,028		1,608
EQT Corp	40,010		2,643	AvalonBay Communities Inc	34,890		6,100
Exxon Mobil Corp	1,094,603		90,567	Boston Properties Inc	40,317		5,074
Helmerich & Payne Inc	28,287		1,592	Crown Castle International Corp	87,622		7,488
Hess Corp	63,303		3,558	Equinix Inc	14,953		4,436
Marathon Oil Corp	177,781		3,268	Equity Residential	95,582		7,390
Marathon Petroleum Corp	140,757		7,291	Essex Property Trust Inc	17,259		3,805
Murphy Oil Corp	42,631		1,212	General Growth Properties Inc	153,457		4,443
Newfield Exploration Co ^(a)	42,783		1,719	HCP Inc	121,442		4,518
Noble Energy Inc	111,592		3,999	Host Hotels & Resorts Inc	197,191		3,417
Occidental Petroleum Corp	200,559		14,950	Iron Mountain Inc	50,366		1,543
Phillips 66	125,704		11,194	Kimco Realty Corp	108,460		2,903
Pioneer Natural Resources Co	39,197		5,376	Macerich Co/The	35,329		2,994
Range Resources Corp	44,462		1,353	Plum Creek Timber Co Inc	45,871		1,869
Southwestern Energy Co ^(a)	100,927		1,114	Prologis Inc	137,598		5,880
Tesoro Corp	32,316		3,456	Public Storage	38,597		8,856
Transocean Ltd	89,717		1,420	Realty Income Corp	61,660		3,050
Valero Energy Corp	130,506		8,603	Simon Property Group Inc	81,229		16,364
	$		263,334	SL Green Realty Corp	26,151		3,102
				Ventas Inc	87,291		4,689
Oil & Gas Services - 1.01%				Vornado Realty Trust	46,516		4,677
Baker Hughes Inc	114,431		6,028	Welltower Inc	92,380		5,993
Cameron International Corp ^(a)	50,278		3,420
FMC Technologies Inc ^(a)	60,243		2,038	Weyerhaeuser Co	134,991		3,959
					$		125,518
Halliburton Co	224,396		8,612
National Oilwell Varco Inc	100,761		3,793	Retail - 6.49%
Schlumberger Ltd	332,217		25,966	Advance Auto Parts Inc	19,221		3,814
	$		49,857	AutoNation Inc ^(a)	20,549		1,298
				AutoZone Inc ^(a)	8,104		6,357
Packaging & Containers - 0.20%				Bed Bath & Beyond Inc ^(a)	44,523		2,655
Ball Corp	36,272		2,485	Best Buy Co Inc	80,573		2,822
Owens-Illinois Inc ^(a)	42,206		909
				CarMax Inc ^(a)	54,617		3,223
Sealed Air Corp	54,039		2,654	Chipotle Mexican Grill Inc ^(a)	8,175		5,234
WestRock Co	68,742		3,696	Coach Inc	72,622		2,266
	$		9,744	Costco Wholesale Corp	115,378		18,244
Pharmaceuticals - 7.37%				CVS Health Corp	292,585		28,901
Abbott Laboratories	391,284		17,530	Darden Restaurants Inc	29,928		1,852
AbbVie Inc	434,558		25,878	Dollar General Corp	77,356		5,242
Allergan PLC ^(a)	103,341		31,878	Dollar Tree Inc ^(a)	61,620		4,035
AmerisourceBergen Corp	53,921		5,204	GameStop Corp	28,017		1,291
Baxalta Inc	142,179		4,899	Gap Inc/The	62,453		1,700
Bristol-Myers Squibb Co	437,768		28,871	Home Depot Inc/The	337,114		41,681
Cardinal Health Inc	85,941		7,064	Kohl's Corp	51,948		2,396
Eli Lilly & Co	256,101		20,890	L Brands Inc	67,451		6,474
Endo International PLC ^(a)	54,672		3,280	Lowe's Cos Inc	242,900		17,933
Express Scripts Holding Co ^(a)	177,399		15,324	Macy's Inc	86,892		4,430
Johnson & Johnson	726,971		73,446	McDonald's Corp	247,252		27,754
Mallinckrodt PLC ^(a)	30,805		2,023	Nordstrom Inc	36,568		2,385
McKesson Corp	61,012		10,909	O'Reilly Automotive Inc ^(a)	26,096		7,209
Mead Johnson Nutrition Co	53,224		4,364	PVH Corp	21,669		1,971
Merck & Co Inc	739,449		40,418	Ross Stores Inc	108,632		5,495
Mylan NV ^(a)	108,399		4,779	Signet Jewelers Ltd	20,895		3,154
Perrigo Co PLC	38,402		6,058	Staples Inc	168,955		2,195
Pfizer Inc ^(b)	1,619,110		54,758	Starbucks Corp	389,646		24,380
Zoetis Inc	120,508		5,183	Target Corp	164,981		12,733
	$		362,756	Tiffany & Co	29,451		2,428
				TJX Cos Inc/The	177,042		12,958
Pipelines - 0.58%				Tractor Supply Co	35,656		3,294
Columbia Pipeline Group Inc	83,383		1,732	Urban Outfitters Inc ^(a)	24,892		712
Kinder Morgan Inc/DE	471,867		12,905	Walgreens Boots Alliance Inc	229,405		19,426


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)		Shares Held		Value(000			's)

Retail (continued)				Transportation (continued)
Wal-Mart Stores Inc	414,289	$	23,714	Norfolk Southern Corp		79,122			$	6,332
Yum! Brands Inc	113,204		8,027	Ryder System Inc		14,012				1,006
	$		319,683	Union Pacific Corp		227,794				20,353
				United Parcel Service Inc		183,363				18,890
Savings & Loans - 0.05%								$		73,606
Hudson City Bancorp Inc	126,505		1,280
				TOTAL COMMON STOCKS			$	4,823,917
People's United Financial Inc	81,382		1,298
				INVESTMENT COMPANIES - 1.81%		Shares Held		Value(000			's)
	$		2,578
				Publicly Traded Investment Fund - 1.81%

Semiconductors - 2.87%				Morgan Stanley Institutional Liquidity Funds -		88,905,935				88,906
Altera Corp	79,407		4,173		Government Portfolio

Analog Devices Inc	82,348		4,951
Applied Materials Inc	315,197		5,286
Avago Technologies Ltd	68,209		8,398	TOTAL INVESTMENT COMPANIES				$		88,906
Broadcom Corp	146,753		7,543	Total Investments			$	4,912,823
Intel Corp	1,248,065		42,259	Other Assets in Excess of Liabilities, Net - 0.19%				$		9,539
KLA-Tencor Corp	41,356		2,776	TOTAL NET ASSETS - 100.00%			$	4,922,362
Lam Research Corp	41,528		3,181
Linear Technology Corp	62,943		2,796
Microchip Technology Inc	55,417		2,676	(a)	Non-Income Producing Security
Micron Technology Inc ^(a)	282,596		4,680	(b)	Security or a portion of the security was pledged to cover margin
NVIDIA Corp	134,428		3,814		requirements for futures contracts. At the end of the period, the value of
Qorvo Inc ^(a)	39,256		1,724		these securities totaled $14,211 or 0.29% of net assets.
QUALCOMM Inc	412,486		24,510
Skyworks Solutions Inc	50,074		3,868
Texas Instruments Inc	269,456		15,283		Portfolio Summary (unaudited)
Xilinx Inc	67,905		3,234	Sector						Percent
	$		141,152	Consumer, Non-cyclical						23.37	%
Software - 4.54%				Financial						16.39	%
Activision Blizzard Inc	132,058		4,590	Technology						13.16	%
Adobe Systems Inc ^(a)	130,646		11,583	Communications						12.53	%
Akamai Technologies Inc ^(a)	46,886		2,852	Consumer, Cyclical						10.27	%
Autodesk Inc ^(a)	59,383		3,277	Industrial						9.54	%
CA Inc	82,257		2,279	Energy						6.97	%
Cerner Corp ^(a)	80,626		5,345	Utilities						2.87	%
Citrix Systems Inc ^(a)	42,188		3,464	Basic Materials						2.53	%
Dun & Bradstreet Corp/The	9,480		1,080	Exchange Traded Funds						2.14	%
Electronic Arts Inc ^(a)	81,842		5,898	Diversified						0.04	%
Fidelity National Information Services Inc	73,923		5,390	Other Assets in Excess of Liabilities, Net						0.19	%
Fiserv Inc ^(a)	61,583		5,943	TOTAL NET ASSETS						100.00	%
Intuit Inc	72,801		7,093
Microsoft Corp	2,099,705		110,529
Oracle Corp	853,761		33,160
Paychex Inc	84,396		4,353
Red Hat Inc ^(a)	48,169		3,811
salesforce.com inc ^(a)	162,873		12,657
	$		223,304

Telecommunications - 3.21%
AT&T Inc	1,614,818		54,113
CenturyLink Inc	147,800		4,170
Cisco Systems Inc	1,335,195		38,520
Frontier Communications Corp	306,688		1,576
Juniper Networks Inc	92,849		2,915
Level 3 Communications Inc ^(a)	75,667		3,855
Motorola Solutions Inc	42,208		2,953
Verizon Communications Inc	1,067,363		50,038
	$		158,140

Textiles - 0.07%
Mohawk Industries Inc ^(a)	16,687		3,262


Toys, Games & Hobbies - 0.09%
Hasbro Inc	29,511		2,267
Mattel Inc	88,895		2,185
	$		4,452

Transportation - 1.50%
CH Robinson Worldwide Inc	37,226		2,583
CSX Corp	258,259		6,970
Expeditors International of Washington Inc	49,660		2,473
FedEx Corp	68,955		10,760
JB Hunt Transport Services Inc	24,110		1,841
Kansas City Southern	28,972		2,398


COMMON STOCKS - 99.50%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held	Value(000			's)

Aerospace & Defense - 3.38%				Insurance (continued)
General Dynamics Corp	503,300	$	74,780	Hartford Financial Services Group Inc/The	623,590		$	28,847
Orbital ATK Inc	107,000		9,162	Reinsurance Group of America Inc	172,500			15,566
	$		83,942	Travelers Cos Inc/The	207,000			23,368
						$		173,636
Agriculture - 2.71%
Archer-Daniels-Midland Co	815,200		37,222	Media - 1.99%
Philip Morris International Inc	340,300		30,082	Comcast Corp - Class A	788,000			49,344
	$		67,304

Airlines - 1.01%				Miscellaneous Manufacturers - 1.81%
Delta Air Lines Inc	495,130		25,172	General Electric Co	1,549,000			44,797


Automobile Parts & Equipment - 1.61%				Oil & Gas - 12.72%
Allison Transmission Holdings Inc	871,300		25,006	Apache Corp	949,000			44,726
Goodyear Tire & Rubber Co/The	453,400		14,890	ConocoPhillips	445,700			23,778
				EP Energy Corp ^(a)	1,098,600			6,053
	$		39,896
				Exxon Mobil Corp	782,000			64,703
Banks - 16.03%				Newfield Exploration Co ^(a)	856,900			34,439
Bank of America Corp	220,000		3,692	Noble Corp PLC	1,693,000			22,805
Citigroup Inc	838,400		44,578	Tesoro Corp	540,400			57,785
Goldman Sachs Group Inc/The	239,000		44,812	Valero Energy Corp	934,000			61,569
JPMorgan Chase & Co	1,702,200		109,366			$		315,858
KeyCorp	2,026,300		25,167
SunTrust Banks Inc	1,188,500		49,347	Oil & Gas Services - 0.94%
				Cameron International Corp ^(a)	342,700			23,307
Wells Fargo & Co	2,234,600		120,981
	$		397,943

Biotechnology - 1.34%				Packaging & Containers - 0.67%
Amgen Inc	209,690		33,169	WestRock Co	310,900			16,714


Building Materials - 1.02%				Pharmaceuticals - 7.47%
Owens Corning	558,000		25,406	Cardinal Health Inc	761,600			62,604
				Johnson & Johnson	335,900			33,936
				Pfizer Inc	2,626,000			88,811
Chemicals - 2.83%						$		185,351
Dow Chemical Co/The	1,360,620		70,303
				REITS - 5.23%
				Apartment Investment & Management Co	354,000			13,873
Computers - 1.41%				Equity Residential	916,000			70,825
Amdocs Ltd	351,800		20,956	Extra Space Storage Inc	291,600			23,107
NetApp Inc	415,200		14,117	Simon Property Group Inc	109,600			22,080
	$		35,073			$		129,885

Cosmetics & Personal Care - 0.96%				Retail - 4.83%
Procter & Gamble Co/The	312,200		23,846	Darden Restaurants Inc	209,000			12,935
				Foot Locker Inc	545,600			36,964
Diversified Financial Services - 1.75%				Target Corp	761,100			58,742
CoreLogic Inc/United States ^(a)	609,400		23,754	Wal-Mart Stores Inc	198,000			11,334
Synchrony Financial ^(a)	637,000		19,594			$		119,975
	$		43,348	Semiconductors - 2.24%
Electric - 4.78%				Intel Corp	1,645,000			55,700
Ameren Corp	509,310		22,247
FirstEnergy Corp	842,320		26,280	Software - 3.09%
Public Service Enterprise Group Inc	1,698,200		70,119	Electronic Arts Inc ^(a)	532,200			38,356
	$		118,646	Microsoft Corp	727,000			38,269
Electronics - 0.31%						$		76,625
Keysight Technologies Inc ^(a)	235,590		7,793
				Telecommunications - 4.82%
				AT&T Inc	553,900			18,561
Food - 3.52%				Cisco Systems Inc	3,506,400			101,160
Ingredion Inc	152,300		14,478			$		119,721
Kroger Co/The	1,462,700		55,290	TOTAL COMMON STOCKS		$		2,470,123
Tyson Foods Inc ^(b)	395,200		17,531	INVESTMENT COMPANIES - 0.63%	Shares Held	Value(000			's)
	$		87,299	Publicly Traded Investment Fund - 0.63%
Healthcare - Services - 4.03%				Goldman Sachs Financial Square Funds -	15,719,828			15,720
Aetna Inc	331,500		38,050	Government Fund
Anthem Inc	352,600		49,064
UnitedHealth Group Inc	110,000		12,956	TOTAL INVESTMENT COMPANIES		$		15,720
	$		100,070	Total Investments		$		2,485,843
				Liabilities in Excess of Other Assets, Net - (0.13)%		$		(3,207	)
Insurance - 7.00%				TOTAL NET ASSETS - 100.00%		$		2,482,636
American International Group Inc	447,550		28,223
Berkshire Hathaway Inc - Class B ^(a)	151,000		20,539
Everest Re Group Ltd	320,800		57,093


COMMON STOCKS - 99.75%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Aerospace & Defense - 1.74%				Insurance (continued)
TransDigm Group Inc ^(a)	880,727	$	193,628	Markel Corp ^(a)	432,867	$	375,729
				Progressive Corp/The	1,855,569		61,475
				White Mountains Insurance Group Ltd	118,836		93,880
Banks - 1.10%				Willis Group Holdings PLC	2,094,669		93,443
M&T Bank Corp	1,026,536		123,030		$		1,337,806

				Internet - 3.29%
Building Materials - 1.93%				Liberty Ventures ^(a)	3,374,842		147,042
Armstrong World Industries Inc ^(a)	1,089,884		54,080
				VeriSign Inc ^(a)	2,730,683		220,093
Martin Marietta Materials Inc	1,036,411		160,799
					$		367,135
	$		214,879
				Leisure Products & Services - 0.65%
Chemicals - 3.98%				Liberty TripAdvisor Holdings Inc ^(a)	2,320,097		72,364
Air Products & Chemicals Inc	1,414,520		196,590
Airgas Inc	1,270,495		122,171
Ecolab Inc	666,653		80,231	Machinery - Diversified - 2.12%
Platform Specialty Products Corp ^(a)	4,276,312		44,645	Roper Technologies Inc	1,269,309		236,536
	$		443,637

Commercial Services - 8.31%				Media - 7.36%
KAR Auction Services Inc	3,555,348		136,525	Discovery Communications Inc - C Shares ^(a)	5,185,709		142,711
Live Nation Entertainment Inc ^(a)	3,430,634		93,588	FactSet Research Systems Inc	396,984		69,520
Macquarie Infrastructure Corp	1,811,095		144,073	Liberty Broadband Corp - A Shares ^(a)	791,384		43,178
McGraw Hill Financial Inc	1,686,566		156,243	Liberty Broadband Corp - C Shares ^(a)	2,004,748		107,795
Moody's Corp	2,137,103		205,504	Liberty Global PLC - A Shares ^(a)	1,075,512		47,882
Robert Half International Inc	897,324		47,253	Liberty Global PLC - C Shares ^(a)	4,106,738		175,111
Verisk Analytics Inc ^(a)	1,998,773		143,132	Liberty Global PLC LiLAC ^(a)	53,775		2,077
	$		926,318	Liberty Global PLC LiLAC ^(a)	190,531		7,366
				Liberty Media Corp - A Shares ^(a)	1,714,127		69,868
Distribution & Wholesale - 0.82%				Liberty Media Corp - C Shares ^(a)	3,958,476		154,974
Fastenal Co	1,245,705		48,782		$		820,482
HD Supply Holdings Inc ^(a)	1,448,309		43,145
	$		91,927	Miscellaneous Manufacturers - 0.96%
				Colfax Corp ^(a)	3,978,427		107,258
Diversified Financial Services - 4.24%
AerCap Holdings NV ^(a)	2,488,400		103,269
Charles Schwab Corp/The	2,423,606		73,968	Oil & Gas - 1.12%
FNF Group	5,486,089		193,549	EOG Resources Inc	330,925		28,410
FNFV Group ^(a)	1,650,324		18,550	Hess Corp	1,711,169		96,185
LPL Financial Holdings Inc	1,974,539		84,115		$		124,595
	$		473,451	Packaging & Containers - 0.29%
Electric - 1.63%				WestRock Co	602,095		32,369
Brookfield Infrastructure Partners LP	3,237,876		136,185
Brookfield Renewable Energy Partners LP/CA	883,528		23,307
Calpine Corp ^(a)	1,433,638		22,236	Pharmaceuticals - 3.93%
				Mead Johnson Nutrition Co	1,744,122		143,018
	$		181,728	Valeant Pharmaceuticals International Inc ^(a)	786,850		73,783
Electronics - 0.81%				Zoetis Inc	5,160,151		221,938
Sensata Technologies Holding NV ^(a)	1,875,893		90,212		$		438,739
				Pipelines - 0.01%
				Kinder Morgan Inc/DE - Warrants ^(a)	1,043,527		637
Engineering & Construction - 2.68%
SBA Communications Corp ^(a)	2,512,941		299,090
				Private Equity - 0.99%
Healthcare - Products - 2.40%				KKR & Co LP	2,228,270		38,215
Becton Dickinson and Co	790,028		112,595	Onex Corp	1,192,346		72,304
CR Bard Inc	830,621		154,786		$		110,519
	$		267,381	Real Estate - 7.87%
Healthcare - Services - 1.03%				Brookfield Asset Management Inc	14,520,963		507,798
DaVita HealthCare Partners Inc ^(a)	1,477,755		114,541	Brookfield Property Partners LP	1,826,240		42,990
				CBRE Group Inc ^(a)	3,606,097		134,435
				Forest City Enterprises Inc ^(a)	4,645,551		102,667
Holding Companies - Diversified - 0.99%				Howard Hughes Corp/The ^(a)	723,981		89,469
Leucadia National Corp	5,534,656		110,748		$		877,359

				REITS - 1.62%
Home Builders - 0.53%				Crown Castle International Corp	1,483,273		126,760
Lennar Corp - A Shares	1,176,300		58,897	Equinix Inc	181,767		53,927
					$		180,687
Insurance - 11.99%
Alleghany Corp ^(a)	95,593		47,440	Retail - 15.89%
				AutoZone Inc ^(a)	258,157		202,501
Aon PLC	3,334,979		311,187	CarMax Inc ^(a)	3,606,217		212,803
Arch Capital Group Ltd ^(a)	889,305		66,600
				Copart Inc ^(a)	2,080,169		75,323
Brown & Brown Inc	3,697,414		119,316
				Dollar General Corp	1,686,450		114,291
Loews Corp	4,627,986		168,736	Dollar Tree Inc ^(a)	1,026,855		67,249


			Schedule of Investments
			MidCap Fund
			October 31, 2015


COMMON STOCKS (continued)	Shares Held		Value(000	's)

Retail (continued)
J Alexander's Holdings Inc ^(a)	94,801		$ 914
Liberty Interactive Corp QVC Group ^(a)	6,257,230		171,260
O'Reilly Automotive Inc ^(a)	1,116,242		308,373
Restaurant Brands International Inc	4,343,264		174,425
Ross Stores Inc	3,110,498		157,329
Signet Jewelers Ltd	1,060,686		160,100
TJX Cos Inc/The	1,738,136		127,214
		$	1,771,782

Semiconductors - 1.21%
Microchip Technology Inc	2,786,905		134,580


Software - 5.31%
Autodesk Inc ^(a)	2,828,651		156,113
CDK Global Inc	1,015,017		50,538
Fidelity National Information Services Inc	2,442,472		178,105
Intuit Inc	1,322,305		128,832
MSCI Inc	1,177,449		78,889
		$	592,477

Telecommunications - 1.61%
EchoStar Corp ^(a)	1,261,231		56,541
Motorola Solutions Inc	1,763,862		123,417
		$	179,958

Textiles - 1.34%
Mohawk Industries Inc ^(a)	765,092		149,576

TOTAL COMMON STOCKS		$	11,124,326
INVESTMENT COMPANIES - 0.08%	Shares Held		Value(000	's)

Publicly Traded Investment Fund - 0.08%
Goldman Sachs Financial Square Funds -	9,363,104		9,363
Government Fund

TOTAL INVESTMENT COMPANIES		$	9,363
Total Investments		$	11,133,689
Other Assets in Excess of Liabilities, Net - 0.17%		$	18,872
TOTAL NET ASSETS - 100.00%		$	11,152,561


(a) Non-Income Producing Security



Portfolio Summary (unaudited)
Sector			Percent
Financial			27.81	%
Consumer, Cyclical			19.23	%
Consumer, Non-cyclical			15.67	%
Communications			12.26	%
Industrial			10.53	%
Technology			6.52	%
Basic Materials			3.98	%
Utilities			1.63	%
Energy			1.13	%
Diversified			0.99	%
Exchange Traded Funds			0.08	%
Other Assets in Excess of Liabilities, Net			0.17	%
TOTAL NET ASSETS			100.00	%


Schedule of Investments
MidCap Value Fund III
October 31, 2015



COMMON STOCKS - 94.67%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.02%				Biotechnology (continued)
Clear Channel Outdoor Holdings Inc ^(a)	1,354	$	10	Bio-Rad Laboratories Inc ^(a)	819	$	114
Nielsen Holdings PLC	3,582		170		$		160
	$		180
				Building Materials - 2.55%
Aerospace & Defense - 2.94%				Armstrong World Industries Inc ^(a)	845		42
Harris Corp	3,211		254	CRH PLC ADR	397,440		10,874
L-3 Communications Holdings Inc	3,712		469	Fortune Brands Home & Security Inc	3,235		169
Orbital ATK Inc	95,690		8,193	Martin Marietta Materials Inc	1,805		280
Spirit AeroSystems Holdings Inc ^(a)	416,117		21,946	Owens Corning	328,339		14,949
Triumph Group Inc	2,238		104	Vulcan Materials Co	4,984		482
	$		30,966		$		26,796

Agriculture - 2.57%				Chemicals - 2.45%
Bunge Ltd	85,502		6,239	Airgas Inc	1,649		159
Reynolds American Inc	431,546		20,852	Albemarle Corp	5,180		277
	$		27,091	Ashland Inc	1,907		209
				Cabot Corp	2,703		97
Airlines - 0.03%				Celanese Corp	4,444		316
Copa Holdings SA	1,431		72	Cytec Industries Inc	1,994		148
JetBlue Airways Corp ^(a),(b)	10,462		260
				Eastman Chemical Co	121,821		8,792
	$		332	FMC Corp	180,380		7,343
Apparel - 1.80%				Huntsman Corp	3,371		44
Hanesbrands Inc	587,576		18,767	Mosaic Co/The	16,017		541
				Platform Specialty Products Corp ^(a)	4,663		49
Ralph Lauren Corp	1,762		195
	$		18,962	Sigma-Aldrich Corp	3,216		449
				Westlake Chemical Corp	121,737		7,338
Automobile Manufacturers - 0.01%					$		25,762
PACCAR Inc	2,380		125
				Coal - 0.01%
				CONSOL Energy Inc	9,546		64
Automobile Parts & Equipment - 3.18%
Allison Transmission Holdings Inc	175,672		5,042
Delphi Automotive PLC	179,527		14,935	Commercial Services - 1.93%
Goodyear Tire & Rubber Co/The	406,398		13,346	Aaron's Inc	2,428		60
Lear Corp	1,268		158	ADT Corp/The	5,361		177
	$		33,481	Aramark	508		15
				Booz Allen Hamilton Holding Corp	376		11
Banks - 5.72%				Equifax Inc	54,000		5,755
Associated Banc-Corp	6,421		124	Graham Holdings Co	148		82
Bank of Hawaii Corp	2,045		134	H&R Block Inc	554		21
BOK Financial Corp	1,264		85	KAR Auction Services Inc	2,923		112
Capital One Financial Corp	157,638		12,438	Macquarie Infrastructure Corp	2,156		172
CIT Group Inc	9,326		401	ManpowerGroup Inc	3,903		358
Citizens Financial Group Inc	9,709		236	Quanta Services Inc ^(a)	5,078		102
City National Corp/CA	2,128		191	RR Donnelley & Sons Co	4,751		80
Comerica Inc	5,559		241	Total System Services Inc	250,548		13,141
Commerce Bancshares Inc/MO	3,715		169	Towers Watson & Co	1,776		220
Cullen/Frost Bankers Inc	2,408		165		$		20,306
East West Bancorp Inc	4,500		182
Fifth Third Bancorp	618,846		11,789	Computers - 2.99%
First Horizon National Corp	9,968		141	Amdocs Ltd	251,265		14,968
First Republic Bank/CA	4,438		290	Brocade Communications Systems Inc	25,158		262
Huntington Bancshares Inc/OH	442,866		4,858	Computer Sciences Corp	4,331		288
KeyCorp	326,977		4,061	DST Systems Inc	356		44
				IHS Inc ^(a)	306		37
M&T Bank Corp	4,147		497
Northern Trust Corp	7,280		512	Leidos Holdings Inc	2,457		129
PacWest Bancorp	4,558		205	Lexmark International Inc	2,643		86
				Lumentum Holdings Inc ^(a)	2,240		32
Popular Inc	4,770		141	NCR Corp ^(a)	7,067		188
Regions Financial Corp	60,485		566
Signature Bank/New York NY ^(a)	130		19	NetApp Inc	108,552		3,691
SunTrust Banks Inc	426,702		17,717	SanDisk Corp	6,484		499
SVB Financial Group ^(a)	592		72	Synopsys Inc ^(a)	210,758		10,534
				Teradata Corp ^(a)	1,542		43
Synovus Financial Corp	5,985		189
TCF Financial Corp	6,877		106	Western Digital Corp	9,950		665
Valley National Bancorp	430,900		4,525		$		31,466
Zions Bancorporation	6,337		182	Consumer Products - 0.72%
	$		60,236	Avery Dennison Corp	114,390		7,432
Beverages - 0.04%				Clorox Co/The	842		103
Brown-Forman Corp - A Shares	76		9		$		7,535
Brown-Forman Corp - B Shares	274		29	Cosmetics & Personal Care - 0.02%
Molson Coors Brewing Co	4,301		379	Avon Products Inc	17,273		70
	$		417	Edgewell Personal Care Co	1,941		164
Biotechnology - 0.02%					$		234
Alnylam Pharmaceuticals Inc ^(a)	536		46


Schedule of Investments
MidCap Value Fund III
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Distribution & Wholesale - 0.03%				Electronics (continued)
Fossil Group Inc ^(a)	333	$	18	Trimble Navigation Ltd ^(a)	10,031	$	228
Genuine Parts Co	335		31	Tyco International PLC	225,643		8,223
Ingram Micro Inc	6,325		188		$		17,201
WESCO International Inc ^(a)	1,959		96
				Energy - Alternate Sources - 0.02%
	$		333	First Solar Inc ^(a)	3,217		184
Diversified Financial Services - 4.80%				TerraForm Power Inc	2,168		39
Air Lease Corp	4,074		137		$		223
Ally Financial Inc ^(a)	13,867		276
Ameriprise Financial Inc	103,748		11,968	Engineering & Construction - 0.62%
				AECOM ^(a)	5,660		167
CoreLogic Inc/United States ^(a)	62,048		2,419
Discover Financial Services	213,130		11,982	Chicago Bridge & Iron Co NV ADR	4,447		200
E*TRADE Financial Corp ^(a)	9,053		258	Fluor Corp	4,568		218
				Jacobs Engineering Group Inc ^(a)	6,549		263
FNF Group	8,748		309
Interactive Brokers Group Inc - A Shares	2,555		105	KBR Inc	297,080		5,478
				SBA Communications Corp ^(a)	2,050		244
Intercontinental Exchange Inc	2,235		564
Invesco Ltd	15,245		506		$		6,570
Legg Mason Inc	2,682		120	Entertainment - 0.67%
Nasdaq Inc	3,620		209	Dolby Laboratories Inc	2,250		78
Navient Corp	724,916		9,562	Gaming and Leisure Properties Inc	3,534		103
Raymond James Financial Inc	6,392		352	International Game Technology PLC	1,416		23
Santander Consumer USA Holdings Inc ^(a)	4,165		75	SeaWorld Entertainment Inc	343,449		6,845
SLM Corp ^(a)	801,820		5,661
					$		7,049
Springleaf Holdings Inc ^(a)	2,442		114
Synchrony Financial ^(a)	190,749		5,868	Environmental Control - 0.06%
TD Ameritrade Holding Corp	1,224		42	Clean Harbors Inc ^(a)	1,017		47
Waddell & Reed Financial Inc	313		12	Republic Services Inc	7,539		330
	$		50,539	Waste Connections Inc	3,861		210
					$		587
Electric - 7.09%
AES Corp/VA	38,201		418	Food - 1.82%
Alliant Energy Corp	5,561		328	Campbell Soup Co	3,858		196
Ameren Corp	216,149		9,442	ConAgra Foods Inc	11,509		467
Calpine Corp ^(a)	18,430		286	Flowers Foods Inc	2,887		78
CMS Energy Corp	8,634		311	Ingredion Inc	75,167		7,145
Consolidated Edison Inc	13,433		883	JM Smucker Co/The	5,232		614
DTE Energy Co	5,594		456	Kellogg Co	773		54
Edison International	14,347		868	Pilgrim's Pride Corp	2,261		43
Entergy Corp	5,600		382	Pinnacle Foods Inc	6,001		264
Eversource Energy	9,909		505	Safeway, Inc. - CVR - Casa Ley ^(a),(c)	8,276		—
FirstEnergy Corp	282,164		8,804	Safeway, Inc. - CVR - Property Development	8,276		—
Great Plains Energy Inc	6,171		170	Centers ^(a),(b),(c)
Hawaiian Electric Industries Inc	4,264		125	Sysco Corp	12,742		526
ITC Holdings Corp	3,032		99	Tyson Foods Inc	217,484		9,648
MDU Resources Group Inc	7,732		146	Whole Foods Market Inc	2,793		84
NRG Energy Inc	19,388		250		$		19,119
OGE Energy Corp	10,307		294
				Forest Products & Paper - 0.02%
Pepco Holdings Inc	7,888		210	Domtar Corp	2,731		112
Pinnacle West Capital Corp	159,172		10,109	International Paper Co	2,433		104
PPL Corp	392,002		13,485
					$		216
Public Service Enterprise Group Inc	413,028		17,054
SCANA Corp	7,559		448	Gas - 1.27%
TECO Energy Inc	7,349		198	AGL Resources Inc	6,081		380
WEC Energy Group Inc	9,847		508	Atmos Energy Corp	5,878		370
Westar Energy Inc	4,420		175	CenterPoint Energy Inc	218,920		4,062
Xcel Energy Inc	244,122		8,697	National Fuel Gas Co	3,376		177
	$		74,651	NiSource Inc	18,072		346
				Questar Corp	6,976		144
Electrical Components & Equipment - 0.04%				Sempra Energy	7,717		790
Energizer Holdings Inc	2,468		106	UGI Corp	190,393		6,982
Hubbell Inc	2,611		253
SunPower Corp ^(a)	2,176		58	Vectren Corp	3,280		149
					$		13,400
	$		417
				Hand & Machine Tools - 1.43%
Electronics - 1.63%				Kennametal Inc	3,329		93
Agilent Technologies Inc	13,317		503
Arrow Electronics Inc ^(a)	5,176		285	Lincoln Electric Holdings Inc	602		36
				Regal Beloit Corp	1,925		123
Avnet Inc	7,520		342	Stanley Black & Decker Inc	139,612		14,796
FLIR Systems Inc	2,382		63
					$		15,048
Garmin Ltd	4,803		170
Gentex Corp	8,855		145	Healthcare - Products - 1.27%
Jabil Circuit Inc	6,786		156	Alere Inc ^(a)	1,209		56
Keysight Technologies Inc ^(a)	204,761		6,773	Bio-Techne Corp	866		76
National Instruments Corp	3,793		116	Boston Scientific Corp ^(a)	38,558		705
PerkinElmer Inc	3,824		197	Cooper Cos Inc/The	475		72


Schedule of Investments
MidCap Value Fund III
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Healthcare - Products (continued)				Insurance (continued)
DENTSPLY International Inc	4,658	$	284	White Mountains Insurance Group Ltd	188	$	149
Hill-Rom Holdings Inc	181		10	Willis Group Holdings PLC	153,925		6,867
Patterson Cos Inc	1,548		73	WR Berkley Corp	3,033		169
QIAGEN NV ^(a)	9,259		224	XL Group PLC	15,115		576
St Jude Medical Inc	172,135		10,984		$		72,505
Teleflex Inc	1,296		172
VWR Corp ^(a)	549		15	Internet - 0.05%
				HomeAway Inc ^(a)	2,596		82
Zimmer Biomet Holdings Inc	6,580		688
				Symantec Corp	21,233		437
	$		13,359	Zillow Group Inc ^(a)	1,424		40
Healthcare - Services - 3.62%					$		559
Brookdale Senior Living Inc ^(a)	5,749		120
Cigna Corp	113,659		15,235	Iron & Steel - 0.10%
Community Health Systems Inc ^(a)	5,296		148	Nucor Corp	14,500		613
DaVita HealthCare Partners Inc ^(a)	5,356		415	Reliance Steel & Aluminum Co	3,097		186
Health Net Inc/CA ^(a)	102,028		6,557	Steel Dynamics Inc	9,020		167
Laboratory Corp of America Holdings ^(a)	2,905		356	United States Steel Corp	6,068		71
LifePoint Health Inc ^(a)	1,586		109		$		1,037
MEDNAX Inc ^(a)	92,902		6,547
				Leisure Products & Services - 3.07%
Quest Diagnostics Inc	6,161		419	Brunswick Corp/DE	1,119		60
Universal Health Services Inc	66,816		8,158	Harley-Davidson Inc	4,272		211
	$		38,064	Norwegian Cruise Line Holdings Ltd ^(a)	205,677		13,085
Holding Companies - Diversified - 0.02%				Royal Caribbean Cruises Ltd	193,108		18,993
Leucadia National Corp	8,872		178		$		32,349
				Lodging - 0.04%
				Hyatt Hotels Corp ^(a)	1,447		73

Home Builders - 0.08%				MGM Resorts International ^(a)	12,893		299
DR Horton Inc	9,165		270
Lennar Corp - A Shares	3,310		166	Wynn Resorts Ltd	289		20
Lennar Corp - B Shares	420		17		$		392
PulteGroup Inc	11,389		209
				Machinery - Construction & Mining - 0.26%
Toll Brothers Inc(a)	5,675		204	Babcock & Wilcox Enterprises Inc ^(a)	2,616		44
	$		866	Joy Global Inc	144,699		2,486
Home Furnishings - 1.15%				Oshkosh Corp	3,184		131
Whirlpool Corp	75,649		12,114	Terex Corp	4,718		95
					$		2,756

Housewares - 0.03%				Machinery - Diversified - 1.73%
Newell Rubbermaid Inc	6,551		278	AGCO Corp	3,454		167
Tupperware Brands Corp	130		8	BWX Technologies Inc	3,907		111
	$		286	CNH Industrial NV	1,160,700		7,881
				Flowserve Corp	3,393		157
Insurance - 6.89%				IDEX Corp	213		16
Alleghany Corp ^(a)	498		247	Manitowoc Co Inc/The	5,534		85
Allied World Assurance Co Holdings AG	4,269		155	Roper Technologies Inc	2,842		530
American Financial Group Inc/OH	4,366		315	SPX FLOW Inc ^(a)	179,343		6,080
American National Insurance Co	462		48	Xylem Inc/NY	87,444		3,183
AmTrust Financial Services Inc	41,371		2,823		$		18,210
Arch Capital Group Ltd ^(a)	3,858		289
Arthur J Gallagher & Co	2,314		101	Media - 0.27%
Aspen Insurance Holdings Ltd	58,055		2,822	Cable One Inc	150		65
Assurant Inc	2,119		173	Cablevision Systems Corp	5,423		177
Assured Guaranty Ltd	6,815		187	Discovery Communications Inc - A Shares ^(a)	627		19
Axis Capital Holdings Ltd	3,148		170	Discovery Communications Inc - C Shares ^(a)	764		21
Brown & Brown Inc	5,030		162	Gannett Co Inc	4,921		78
Cincinnati Financial Corp	8,621		519	John Wiley & Sons Inc	2,007		105
CNA Financial Corp	1,463		53	Liberty Broadband Corp - A Shares ^(a)	1,162		63
Endurance Specialty Holdings Ltd	193,816		12,236	Liberty Media Corp - A Shares ^(a)	4,378		178
Everest Re Group Ltd	83,987		14,947	Liberty Media Corp - C Shares ^(a)	6,245		245
Hanover Insurance Group Inc/The	2,036		172	Meredith Corp	27,100		1,274
Hartford Financial Services Group Inc/The	271,306		12,551	News Corp	11,976		184
Lincoln National Corp	11,698		626	News Corp	5,163		80
Loews Corp	9,681		353	TEGNA Inc	9,927		268
Markel Corp ^(a)	391		339	Tribune Media Co	3,248		131
Old Republic International Corp	11,702		211		$		2,888
PartnerRe Ltd	2,727		379
				Metal Fabrication & Hardware - 0.02%
Progressive Corp/The	27,087		897	Timken Co/The	3,424		108
Reinsurance Group of America Inc	87,272		7,875	Valmont Industries Inc	989		107
RenaissanceRe Holdings Ltd	1,442		158
					$		215
StanCorp Financial Group Inc	1,322		152
Torchmark Corp	3,926		228	Mining - 0.12%
Unum Group	12,523		434	Alcoa Inc	40,725		364
Validus Holdings Ltd	3,821		169	Freeport-McMoRan Inc	32,343		381
Voya Financial Inc	122,091		4,953	Newmont Mining Corp	16,508		321


Schedule of Investments
MidCap Value Fund III
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Mining (continued)				Oil & Gas Services (continued)
Royal Gold Inc	2,475	$	118	Oceaneering International Inc	3,495	$	147
Tahoe Resources Inc	5,949		50	RPC Inc	3,075		34
	$		1,234	Superior Energy Services Inc	6,660		94
				Targa Resources Corp	1,345		77
Miscellaneous Manufacturers - 1.13%				Weatherford International PLC ^(a)	24,140		247
AptarGroup Inc	2,123		156		$		17,590
Carlisle Cos Inc	2,678		233
Colfax Corp ^(a)	4,183		113	Packaging & Containers - 0.83%
Crane Co	2,182		115	Bemis Co Inc	3,600		165
Donaldson Co Inc	831		25	Crown Holdings Inc ^(a)	4,502		239
Dover Corp	7,190		463	Graphic Packaging Holding Co	6,050		86
Eaton Corp PLC	153,156		8,563	Owens-Illinois Inc ^(a)	6,102		131
Ingersoll-Rand PLC	10,666		632	Sonoco Products Co	4,229		181
ITT Corp	3,944		156	WestRock Co	146,750		7,889
Parker-Hannifin Corp	3,540		371		$		8,691
Pentair PLC	8,077		452
SPX Corp	1,644		20	Pharmaceuticals - 2.37%
				Alkermes PLC ^(a)	1,014		73
Textron Inc	9,989		421
Trinity Industries Inc	6,866		186	Cardinal Health Inc	252,509		20,757
				Endo International PLC ^(a)	5,304		318
	$		11,906	Herbalife Ltd ^(a)	427		24
Office & Business Equipment - 0.04%				Mallinckrodt PLC ^(a)	45,672		2,999
Pitney Bowes Inc	5,594		116	Perrigo Co PLC	4,765		752
Xerox Corp	34,330		322	Quintiles Transnational Holdings Inc ^(a)	166		10
	$		438	VCA Inc ^(a)	185		10
					$		24,943
Oil & Gas - 4.41%
Antero Resources Corp ^(a)	3,115		73	Pipelines - 0.04%
Cheniere Energy Inc ^(a)	7,357		364	Columbia Pipeline Group Inc	9,925		206
Chesapeake Energy Corp	23,674		169	ONEOK Inc	6,791		230
Cimarex Energy Co	2,941		347		$		436
Cobalt International Energy Inc ^(a)	14,857		114
Concho Resources Inc ^(a)	3,732		433	Real Estate - 1.24%
				Forest City Enterprises Inc ^(a)	9,738		215
Continental Resources Inc/OK ^(a)	2,513		85
				Howard Hughes Corp/The ^(a)	732		90
CVR Energy Inc	700		31
Denbury Resources Inc	17,663		62	Jones Lang LaSalle Inc	75,800		12,637
				Realogy Holdings Corp ^(a)	2,886		113
Diamond Offshore Drilling Inc	2,979		59
Diamondback Energy Inc	2,706		200		$		13,055
Energen Corp	3,211		187	REITS - 7.72%
Ensco PLC	10,043		167	Alexandria Real Estate Equities Inc	2,245		202
EP Energy Corp ^(a)	849,488		4,680
				American Campus Communities Inc	4,847		197
EQT Corp	7,002		463	American Capital Agency Corp	10,988		196
Gulfport Energy Corp ^(a)	4,396		134
				Annaly Capital Management Inc	29,472		293
Helmerich & Payne Inc	5,574		314	Apartment Investment & Management Co	187,135		7,334
Hess Corp	11,279		634	Apple Hospitality REIT Inc	7,426		146
HollyFrontier Corp	8,387		411	AvalonBay Communities Inc	5,957		1,041
Kosmos Energy Ltd ^(a)	6,925		47
				BioMed Realty Trust Inc	8,722		204
Laredo Petroleum Inc ^(a)	5,073		58	Boston Properties Inc	412		52
Marathon Oil Corp	20,989		386	Brandywine Realty Trust	7,648		103
Murphy Oil Corp	7,488		213	Brixmor Property Group Inc	7,539		193
Murphy USA Inc ^(a)	1,802		111	Camden Property Trust	2,714		200
Nabors Industries Ltd	14,076		141	Care Capital Properties Inc	3,708		122
Newfield Exploration Co ^(a)	5,079		204
				CBL & Associates Properties Inc	7,868		115
Noble Corp PLC	342,639		4,615	Chimera Investment Corp	9,438		133
Noble Energy Inc	18,988		681	Columbia Property Trust Inc	5,017		125
Patterson-UTI Energy Inc	6,538		97	Corporate Office Properties Trust	201,554		4,636
PBF Energy Inc	167,006		5,678	Corrections Corp of America	4,920		140
Pioneer Natural Resources Co	4,657		639	DDR Corp	9,458		159
QEP Resources Inc	7,318		113	Digital Realty Trust Inc	3,287		243
Range Resources Corp	7,755		236	Douglas Emmett Inc	6,270		192
Rice Energy Inc ^(a)	3,038		46
				Duke Realty Corp	385,782		7,986
Rowan Cos PLC	5,483		108	Empire State Realty Trust Inc	2,870		51
Seadrill Ltd ^(a)	158,861		1,028	Equity Commonwealth ^(a)	5,812		167
SM Energy Co	190,895		6,367	Equity LifeStyle Properties Inc	147,000		8,891
Southwestern Energy Co ^(a)	21,208		234
				Essex Property Trust Inc	47,086		10,379
Tesoro Corp	153,610		16,426	General Growth Properties Inc	27,379		793
WPX Energy Inc ^(a)	10,371		71
				HCP Inc	19,525		726
	$		46,426	Healthcare Trust of America Inc	5,151		136
Oil & Gas Services - 1.67%				Hospitality Properties Trust	6,653		179
Cameron International Corp ^(a)	234,970		15,980	Host Hotels & Resorts Inc	541,224		9,379
Dril-Quip Inc ^(a)	1,734		107	Iron Mountain Inc	3,964		121
FMC Technologies Inc ^(a)	5,925		201	Kilroy Realty Corp	5,137		338
Frank's International NV	2,121		36	Kimco Realty Corp	20,081		538
National Oilwell Varco Inc	17,717		667	Liberty Property Trust	9,411		320


Schedule of Investments
MidCap Value Fund III
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

REITS (continued)				Semiconductors (continued)
Macerich Co/The	4,936	$	418	Cree Inc ^(a)	4,397	$	111
MFA Financial Inc	17,243		119	Freescale Semiconductor Ltd ^(a)	637		21
Mid-America Apartment Communities Inc	4,441		378	Lam Research Corp	1,406		108
National Retail Properties Inc	7,227		275	Marvell Technology Group Ltd	18,887		155
NorthStar Realty Finance Corp	11,333		136	Maxim Integrated Products Inc	5,815		238
Omega Healthcare Investors Inc	7,154		247	Microchip Technology Inc	168,683		8,146
Outfront Media Inc	5,897		139	NVIDIA Corp	25,394		720
Piedmont Office Realty Trust Inc	7,095		138	ON Semiconductor Corp ^(a)	1,752		19
Plum Creek Timber Co Inc	5,664		231	Teradyne Inc	9,205		180
Post Properties Inc	73,737		4,405	Xilinx Inc	6,190		295
Prologis Inc	16,347		699		$		10,644
Rayonier Inc	5,074		115
Realty Income Corp	11,265		557	Software - 0.75%
Regency Centers Corp	88,942		6,044	Activision Blizzard Inc	21,850		760
				Allscripts Healthcare Solutions Inc ^(a)	4,947		70
Retail Properties of America Inc	10,456		157	ANSYS Inc ^(a)	2,268		216
Senior Housing Properties Trust	10,055		153	Autodesk Inc ^(a)	1,811		100
SL Green Realty Corp	3,096		367	Black Knight Financial Services Inc ^(a)	174		6
Spirit Realty Capital Inc	19,128		195
Starwood Property Trust Inc	7,433		149	CA Inc	14,519		402
Taubman Centers Inc	1,810		139	Dun & Bradstreet Corp/The	1,160		132
				Electronic Arts Inc ^(a)	72,471		5,223
Two Harbors Investment Corp	16,838		142
UDR Inc	190,647		6,569	Fidelity National Information Services Inc	6,996		510
				Nuance Communications Inc ^(a)	10,220		173
Ventas Inc	14,278		767
VEREIT Inc	28,186		233	Paychex Inc	2,770		143
Vornado Realty Trust	8,640		869	SS&C Technologies Holdings Inc	1,152		85
				Zynga Inc ^(a)	30,644		73
Weingarten Realty Investors	5,556		199
Welltower Inc	9,292		603		$		7,893
Weyerhaeuser Co	14,761		433	Telecommunications - 0.23%
WP Carey Inc	3,252		206	ARRIS Group Inc ^(a)	4,734		134
WP GLIMCHER Inc	7,647		89	CenturyLink Inc	24,820		700
	$		81,201	CommScope Holding Co Inc ^(a)	2,642		86
				EchoStar Corp ^(a)	1,872		84
Retail - 3.82%
Best Buy Co Inc	13,444		471	Frontier Communications Corp	36,436		187
Cabela's Inc ^(a)	1,842		72	Juniper Networks Inc	10,142		318
				Level 3 Communications Inc ^(a)	10,938		557
Coach Inc	7,402		231	Sprint Corp ^(a)	31,034		147
CST Brands Inc	709		25
Darden Restaurants Inc	172,147		10,654	Telephone & Data Systems Inc	4,066		117
				United States Cellular Corp ^(a)	753		31
Dick's Sporting Goods Inc	2,149		96	Viavi Solutions Inc ^(a)	9,799		58
Dillard's Inc	909		81	Zayo Group Holdings Inc ^(a)	829		22
DSW Inc	2,848		71
Foot Locker Inc	186,487		12,635		$		2,441
GameStop Corp	4,486		207	Textiles - 0.51%
JC Penney Co Inc ^(a)	12,531		115	Mohawk Industries Inc ^(a)	27,510		5,378
Kohl's Corp	8,645		399
L Brands Inc	135,570		13,012
Liberty Interactive Corp QVC Group ^(a)	12,694		347	Toys, Games & Hobbies - 0.04%
Macy's Inc	4,672		238	Hasbro Inc	1,500		115
MSC Industrial Direct Co Inc	1,562		98	Mattel Inc	10,534		259
Nu Skin Enterprises Inc	1,839		70		$		374
Office Depot Inc ^(a)	18,572		141
				Transportation - 1.40%
Penske Automotive Group Inc	1,225		60	Genesee & Wyoming Inc ^(a)	1,345		90
PVH Corp	3,756		342	Golar LNG Ltd	313,379		9,091
Rite Aid Corp ^(a)	22,125		174
				Kansas City Southern	3,437		284
(a)
Sears Holdings Corp	512		12	Kirby Corp ^(a)	2,343		153
Staples Inc	19,940		259	Ryder System Inc	70,645		5,071
Tiffany & Co	860		71	Teekay Corp	1,415		46
Vista Outdoor Inc ^(a)	2,361		106
					$		14,735
Wendy's Co/The	8,903		82
World Fuel Services Corp	2,677		119	Water - 0.05%
	$		40,188	American Water Works Co Inc	5,596		321
				Aqua America Inc	5,545		159
Savings & Loans - 2.19%					$		480
First Niagara Financial Group Inc	388,323		4,019	TOTAL COMMON STOCKS	$		996,297
Hudson City Bancorp Inc	16,524		167
				INVESTMENT COMPANIES - 5.47%	Shares Held Value (000's)
New York Community Bancorp Inc	662,944		10,952
People's United Financial Inc	489,330		7,805	Publicly Traded Investment Fund - 5.47%
TFS Financial Corp	3,228		57	BlackRock Liquidity Funds FedFund Portfolio	4,033,103		4,033
	$		23,000	Cash Account Trust - Government & Agency	1,006,435		1,007
				Portfolio - Government Cash Managed
Semiconductors - 1.01%				First American Government Obligations Fund	39,204,727		39,205
Altera Corp	6,450		339
Analog Devices Inc	828		50
Applied Materials Inc	15,643		262


Schedule of Investments
MidCap Value Fund III
October 31, 2015



INVESTMENT COMPANIES (continued)		Shares Held			Value (000's)

Publicly Traded Investment Fund (continued)
Goldman Sachs Financial Square Funds -		13,375,332		$	13,375
Government Fund
			$		57,620
TOTAL INVESTMENT COMPANIES			$		57,620
Total Investments			$		1,053,917
Liabilities in Excess of Other Assets, Net - (0.14)%			$		(1,426	)
TOTAL NET ASSETS - 100.00%			$		1,052,491


(a)	Non-Income Producing Security
(b)	Security is Illiquid. At the end of the period, the value of these securities
	totaled $260 or 0.02% of net assets.
(c)	Fair value of these investments is determined in good faith by the Manager
	under procedures established and periodically reviewed by the Board of
	Directors. At the end of the period, the fair value of these securities totaled
	$0 or 0.00% of net assets.

	Portfolio Summary (unaudited)
Sector					Percent
Financial					28.56	%
Industrial					14.64	%
Consumer, Cyclical					14.46	%
Consumer, Non-cyclical					14.39	%
Utilities					8.41	%
Energy					6.15	%
Exchange Traded Funds					5.47	%
Technology					4.78	%
Basic Materials					2.69	%
Communications					0.57	%
Diversified					0.02	%
Liabilities in Excess of Other Assets, Net					(0.14	)%
TOTAL NET ASSETS					100.00	%



Futures Contracts

												Unrealized
Type			Long/Short		Contracts		Notional Value		Fair Value	Appreciation/(Depreciation)
S&P Mid 400 Emini; December 2015			Long		409	$	57,450	$	58,953		$	1,503
Total										$		1,503

Amounts in thousands except contracts


INVESTMENT COMPANIES - 5.12%			Shares Held Value (000's)					Principal
						MUNICIPAL BONDS - 5.26%		Amount (000's) Value (000's)
Publicly Traded Investment Fund - 5.12%
BlackRock Liquidity Funds TempFund			13,390,000	$	13,390	California - 0.82%
Portfolio						Kern Water Bank Authority (credit support
Deutsche Money Market Series			14,980,000		14,980	from Wells Fargo)
Morgan Stanley Institutional Liquidity Funds -			4,900,000		4,900	0.19%, 11/06/2015^(d)	$	4,367	$	4,367
Government Portfolio						San Francisco City & County Redevelopment
STIT - Liquid Assets Portfolio			18,000,000		18,000	Agency (credit support from Fannie Mae)
			$		51,270	0.09%, 11/06/2015^(d)		3,800		3,800
TOTAL INVESTMENT COMPANIES			$		51,270			$		8,167
			Principal			Colorado - 1.55%
BONDS- 10.23	%		Amount (000's) Value (000's)			City of Colorado Springs CO Utilities System
Automobile Asset Backed Securities - 3.53%						Revenue (credit support from Mizuho Bank
						LTD)
AmeriCredit Automobile Receivables Trust						0.16%, 11/06/2015^(d)		7,000		7,000
2015-3
0.50%, 08/08/2016^(a)		$	3,580	$	3,580	Colorado Housing & Finance
ARI Fleet Lease Trust 2015-A						Authority (credit support from Federal Home
0.40%, 04/15/2016^(b)			1,441		1,441	Loan Bank)
						0.15%, 11/06/2015^(a),(d)		7,510		7,510
BMW Vehicle Lease Trust 2015-2
0.42%, 10/20/2016^(a)			5,000		5,000	County of Kit Carson CO (credit support from
Drive Auto Receivables Trust 2015-D						Wells Fargo)
0.52%, 10/17/2016^(b)			5,161		5,161	0.08%, 11/06/2015^(d)		990		990
Enterprise Fleet Financing LLC								$		15,500
0.48%, 07/20/2016^(a),(b)			4,042		4,042

Ford Credit Auto Lease Trust 2015-B						Illinois - 1.13%
0.43%, 11/15/2016^(a)			4,000		4,000	Memorial Health System/IL (credit support
						from JP Morgan Chase & Co)
GM Financial Automobile Leasing Trust						0.08%, 11/06/2015^(d)		11,295		11,295
2015-3
0.45%, 10/20/2016^(a)			4,800		4,800
Huntington Auto Trust 2015-1						Maryland - 0.65%
0.35%, 06/15/2016			2,216		2,216	City of Baltimore MD (credit support from
						State Street Bank & Trust)
Santander Drive Auto Receivables Trust 2015-4						0.14%, 11/06/2015^(d)		6,555		6,555
0.50%, 09/15/2016^(a)			3,045		3,045
SunTrust Auto Receivables Trust 2015-1
0.40%, 06/15/2016^(a),(b)			2,016		2,016	Minnesota - 0.47%
						City of St Paul MN (credit support from
			$		35,301	Wells Fargo)
						0.19%, 11/06/2015^(d)		4,700		4,700
Banks- 0.72	%
Wells Fargo Bank NA
0.50%, 11/21/2016^(a)			7,200		7,200
						New Mexico - 0.32%
						City of Las Cruces NM (credit support from
						Wells Fargo)
Diversified Financial Services - 2.42%						0.19%, 11/06/2015^(d)		3,200		3,200
Corporate Finance Managers Inc
0.19%, 11/06/2015^(a)			9,200		9,200
MetLife Inc
0.39%, 08/17/2016^(a),(c)			15,000		15,000	Oklahoma - 0.31%
						Oklahoma University Hospital (credit support
			$		24,200	from Bank of America)
						0.15%, 11/06/2015^(d)		3,100		3,100
Healthcare - Services - 0.95%
Portland Clinic LLP/The
0.15%, 11/06/2015^(a)			9,520		9,520	Washington - 0.01%
						Washington State Housing Finance
Insurance - 1.60%						Commission (credit support from Fannie
New York Life Global Funding Company						Mae)
0.28%, 07/22/2016^(a),(c)			16,000		16,000	0.25%, 11/06/2015^(d)		85		85

						TOTAL MUNICIPAL BONDS		$		52,602
Other Asset Backed Securities - 1.01%								Principal
Dell Equipment Finance Trust 2015-2						COMMERCIAL PAPER - 69.84%		Amount (000's) Value (000's)
0.53%, 10/24/2016^(a),(b)			5,900		5,900
GE Equipment Transportation LLC Series						Aerospace & Defense - 0.78%
2015-1						United Technologies Corp
0.25%, 03/23/2016^(a)			394		394	0.26%, 11/24/2015^(b)	$	7,800	$	7,799
GreatAmerica Leasing Receivables Funding
LLC Series 2015-1
0.40%, 03/21/2016^(a),(b)			438		439	Agriculture - 2.15%
						Archer-Daniels-Midland Co
John Deere Owner Trust 2015						0.12%, 11/02/2015^(b)		5,700		5,700
0.27%, 04/01/2016^(a)			853		853
						Cargill Inc
MMAF Equipment Finance LLC 2015-A						0.12%, 11/02/2015^(b)		7,800		7,800
0.39%, 06/03/2016^(a),(b)			2,531		2,531
						Philip Morris International Inc
			$		10,117	0.17%, 12/30/2015^(b)		8,000		7,998
TOTAL BONDS			$		102,338			$		21,498


			Principal					Principal
COMMERCIAL PAPER (continued)			Amount (000's) Value (000's)			COMMERCIAL PAPER (continued)		Amount (000's) Value (000's)

Automobile Manufacturers - 0.50%						Commercial Services - 2.29%
PACCAR Financial Corp (credit support from						Catholic Health Initiatives
PACCAR Inc)						0.35%, 11/03/2015	$	7,000	$	7,000
0.12%, 11/02/2015^(d)		$	5,000	$	5,000	0.35%, 11/17/2015		7,900		7,899
						0.40%, 11/10/2015		8,000		7,999
								$		22,898
Banks- 26.96	%
Bank of Tokyo-Mitsubishi UFJ Ltd/New York						Computers - 1.60%
NY						EMC Corp/MA
0.17%, 11/12/2015			7,800		7,799	0.21%, 11/05/2015^(b)		8,000		8,000
0.19%, 11/27/2015			3,000		3,000	International Business Machines Corp
0.23%, 12/31/2015			5,500		5,498	0.20%, 12/28/2015^(b)		8,000		7,997
0.29%, 01/04/2016			7,000		6,996			$		15,997
BNP Paribas SA/New York NY
0.20%, 12/21/2015			2,270		2,269	Consumer Products - 0.70%
0.23%, 11/06/2015			7,700		7,700	Reckitt Benckiser Treasury Services
0.31%, 11/18/2015			7,900		7,899	PLC (credit support from Reckitt Benckiser
						Group)
Credit Suisse AG/New York NY						0.40%, 01/11/2016^(b),(d)		7,000		6,994
0.30%, 11/16/2015			7,900		7,899
0.32%, 11/30/2015			7,000		6,998
0.40%, 01/14/2016			7,000		6,994
DBS Bank Ltd						Diversified Financial Services - 16.59%
0.29%, 11/09/2015^(b),(e)			8,000		8,000	American Express Credit Corp
						0.24%, 12/09/2015		11,500		11,497
0.30%, 11/17/2015^(b),(e)			7,100		7,099	Anglesea Funding LLC
0.30%, 11/25/2015^(b),(e)			8,000		7,998	0.12%, 11/12/2015^(b)		7,700		7,700
DNB Bank ASA						AXA Financial Inc (credit support from AXA
0.25%, 12/29/2015^(b),(e)			6,000		5,998	SA)
ING US Funding LLC (credit support from						0.20%, 11/06/2015^(b),(d)		4,800		4,800
ING Bank)						CRC Funding LLC
0.30%, 12/09/2015^(d)			7,000		6,998	0.30%, 12/14/2015^(b)		7,900		7,897
0.32%, 12/02/2015^(d)			7,000		6,998
						DCAT LLC
Manhattan Asset Funding Co LLC						0.32%, 11/06/2015		8,500		8,500
0.19%, 11/13/2015			7,000		7,000	0.35%, 11/02/2015		8,000		8,000
0.20%, 11/16/2015			8,000		7,999	0.35%, 11/04/2015		8,300		8,300
0.20%, 12/02/2015			3,000		2,999	Fairway Finance LLC
0.22%, 12/18/2015			7,000		6,998	0.13%, 11/23/2015^(b)		8,000		7,999
Mizuho Bank Ltd/NY						0.30%, 12/08/2015^(b)		7,000		6,998
0.29%, 01/06/2016^(b)			8,700		8,695	Gotham Funding Corp
0.29%, 01/20/2016^(b)			8,200		8,195	0.19%, 11/03/2015^(b)		1,500		1,500
Nordea Bank AB						0.23%, 12/01/2015^(b)		6,500		6,498
0.23%, 01/21/2016^(b),(e)			8,000		7,996	0.25%, 12/07/2015^(b)		8,400		8,398
0.30%, 11/19/2015^(b),(e)			8,000		7,999	0.28%, 11/24/2015^(b)		8,000		7,999
0.31%, 02/12/2016^(b),(e)			7,000		6,994
						Intercontinental Exchange Inc
Sheffield Receivables Co LLC						0.15%, 11/10/2015^(b)		7,900		7,900
0.28%, 11/03/2015^(b)			7,900		7,900	0.25%, 11/04/2015^(b)		8,000		8,000
0.28%, 12/17/2015^(b)			8,000		7,997	0.30%, 12/22/2015^(b)		6,000		5,997
Skandinaviska Enskilda Banken AB
0.29%, 12/21/2015^(b),(e)			7,200		7,197	JP Morgan Securities LLC
						0.40%, 12/16/2015		2,000		1,999
0.29%, 12/23/2015^(b),(e)			7,500		7,497
						Jupiter Securitization Co LLC
0.33%, 02/16/2016^(b),(e)			7,000		6,993	0.42%, 01/13/2016^(b)		7,000		6,994
Societe Generale SA						Nieuw Amsterdam Receivables Corp
0.09%, 11/02/2015^(b),(e)			4,600		4,600	0.20%, 12/07/2015^(b)		6,500		6,499
0.26%, 11/04/2015^(b),(e)			6,900		6,900	0.21%, 12/08/2015^(b)		8,400		8,398
Standard Chartered Bank/New York						0.23%, 11/03/2015^(b)		7,400		7,400
0.30%, 11/16/2015^(b)			7,800		7,799
						Regency Markets No. 1 LLC
0.34%, 11/23/2015^(b)			8,000		7,998	0.18%, 11/05/2015^(b)		8,700		8,700
Sumitomo Mitsui Banking Corp						0.18%, 11/25/2015^(b)		6,000		5,999
0.24%, 12/17/2015^(b),(e)			8,300		8,298
						Thunder Bay Funding LLC
0.30%, 12/24/2015^(b),(e)			7,000		6,997	0.36%, 01/15/2016^(b)		2,000		1,998
0.31%, 11/09/2015^(b),(e)			8,000		7,999
								$		165,970
United Overseas Bank Ltd
0.30%, 11/16/2015^(b),(e)			2,000		2,000	Electric - 3.97%
0.30%, 12/04/2015^(b),(e)			8,500		8,498	GDF Suez
						0.26%, 11/10/2015^(b)		7,000		6,999
			$		269,691
						0.28%, 12/07/2015^(b)		5,000		4,999
Beverages - 0.95%						0.30%, 12/15/2015^(b)		7,000		6,997
Brown-Forman Corp						0.30%, 01/07/2016^(b)		6,000		5,997
0.16%, 11/05/2015^(b)			6,000		6,000	Oglethorpe Power Corp
0.18%, 11/20/2015^(b)			3,500		3,500	0.20%, 11/09/2015^(b)		7,014		7,014
			$		9,500	0.20%, 12/01/2015^(b)		7,700		7,699
Chemicals - 1.10%								$		39,705
EI du Pont de Nemours & Co
0.20%, 11/20/2015^(b)			11,000		10,999


			Principal						Maturity
COMMERCIAL PAPER (continued)			Amount (000's) Value (000's)			REPURCHASE AGREEMENTS - 7.02%		Amount (000's)		Value (000's)

Electrical Components & Equipment - 0.70%						Banks - 7.02%
Emerson Electric Co						Credit Suisse Repurchase Agreement; 0.09%		$	35,000	$	35,000
0.15%, 12/21/2015^(b)		$	7,000	$	6,998		dated 10/30/2015 maturing 11/02/2015
							(collateralized by US Government
							Securities; $35,701,325; 0%; dated
							11/15/40-02/15/43)
Healthcare - Products - 1.29%
Danaher Corp
0.15%, 11/06/2015^(b)			4,900		4,900	Merrill Lynch Repurchase Agreement; 0.07%			35,200		35,200
0.18%, 11/13/2015^(b)			8,000		7,999		dated 10/30/2015 maturing 11/02/2015
							(collateralized by US Government
			$		12,899		Security; $35,904,117; 0%; dated 05/04/37)

Insurance - 2.60%										$	70,200
Prudential PLC						TOTAL REPURCHASE AGREEMENTS				$	70,200
0.27%, 11/27/2015^(b)			8,000		7,999	Total Investments				$	1,003,430
0.30%, 12/04/2015^(b)			3,000		2,999	Liabilities in Excess of Other Assets, Net - (0.32)%				$	(3,215	)
0.32%, 02/17/2016^(b)			7,000		6,993	TOTAL NET ASSETS - 100.00%				$	1,000,215
0.37%, 02/02/2016^(b)			8,000		7,992
			$		25,983
						(a)	Variable Rate. Rate shown is in effect at October 31, 2015.
Machinery - Construction & Mining - 0.68%						(b)	Security exempt from registration under Rule 144A of the Securities Act of
Caterpillar Financial Services Corp (credit							1933. These securities may be resold in transactions exempt from
support from Caterpillar Inc)
0.17%, 11/23/2015^(d)			6,800		6,799		registration, normally to qualified institutional buyers. At the end of the
							period, the value of these securities totaled $538,013 or 53.79% of net
							assets.
Media- 0.80	%					(c)	Security is Illiquid. At the end of the period, the value of these securities
Walt Disney Co/The							totaled $31,000 or 3.10% of net assets.
0.15%, 12/24/2015^(b)			8,000		7,998	(d)	Credit support indicates investments that benefit from credit enhancement
							or liquidity support provided by a third party bank, institution, or
							government agency.
Miscellaneous Manufacturers - 1.07%						(e)	Security issued by foreign bank and denominated in USD.
Dover Corp
0.10%, 11/02/2015^(b)			10,700		10,700

							Portfolio Summary (unaudited)
Oil & Gas - 1.56%
BP Capital Markets PLC (credit support from						Sector					Percent
BP PLC)						Financial					62.26	%
0.16%, 11/18/2015^(b),(d)			8,600		8,599	Consumer, Non-cyclical					9.13	%
Exxon Mobil Corp						Insured					5.26	%
0.04%, 11/02/2015			7,000		7,000	Exchange Traded Funds					5.12	%
			$		15,599	Asset Backed Securities					4.54	%
						Utilities					3.97	%
Pharmaceuticals - 0.80%						Industrial					3.23	%
AstraZeneca PLC						Energy					2.81	%
0.14%, 12/10/2015^(b)			8,000		7,999	Technology					1.60	%
						Basic Materials					1.10	%
						Communications					0.80	%
Pipelines - 1.25%
Questar Corp						Consumer, Cyclical					0.50	%
0.15%, 11/13/2015^(b)			12,500		12,499	Liabilities in Excess of Other Assets, Net					(0.32	)%
						TOTAL NET ASSETS					100.00	%

REITS- 0.70	%
Simon Property Group LP
0.21%, 12/16/2015^(b)			7,000		6,998


Supranational Bank - 0.80%
Corp Andina de Fomento
0.24%, 01/04/2016^(b)			8,000		7,997

TOTAL COMMERCIAL PAPER			$		698,520
			Principal
CERTIFICATE OF DEPOSIT - 2.85%			Amount (000's)		Value (000's)

Banks- 2.85	%
Bank of America NA
0.28%, 11/12/2015			8,000		8,000
0.34%, 01/19/2016			6,700		6,700
0.34%, 02/29/2016			8,000		8,000
Bank of Nova Scotia/Houston
0.47%, 11/10/2016^(a),(e)			5,800		5,800
			$		28,500
TOTAL CERTIFICATE OF DEPOSIT			$		28,500

Schedule of Investments Principal Capital Appreciation Fund October 31, 2015


COMMON STOCKS - 98.52%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Aerospace & Defense - 3.22%				Distribution & Wholesale - 0.49%
Boeing Co/The	275,967	$	40,862	Pool Corp	157,534	$	12,845
Northrop Grumman Corp	162,086		30,432
Teledyne Technologies Inc ^(a)	152,007		13,564
				Diversified Financial Services - 3.37%
	$		84,858	Ameriprise Financial Inc	100,384		11,580
Airlines - 0.48%				Charles Schwab Corp/The	918,049		28,019
Alaska Air Group Inc	167,042		12,737	FNF Group	467,508		16,494
				Franklin Resources Inc	519,904		21,191
				T Rowe Price Group Inc	152,875		11,561
Apparel - 1.86%					$		88,845
NIKE Inc	361,700		47,394
Ralph Lauren Corp	13,777		1,526	Electric - 1.54%
	$		48,920	Duke Energy Corp	243,047		17,370
				Xcel Energy Inc	654,525		23,321
Automobile Manufacturers - 0.77%					$		40,691
PACCAR Inc	383,791		20,207
				Electronics - 3.43%
				Corning Inc	464,930		8,648
Automobile Parts & Equipment - 1.57%				FEI Co	105,962		7,650
Autoliv Inc	138,991		16,851	FLIR Systems Inc	111,399		2,971
Johnson Controls Inc	546,290		24,682	Thermo Fisher Scientific Inc	233,409		30,525
	$		41,533	Trimble Navigation Ltd ^(a)	505,731		11,505
				Waters Corp ^(a)	228,242		29,169
Banks - 7.13%
East West Bancorp Inc	365,376		14,757		$		90,468
Goldman Sachs Group Inc/The	68,228		12,793	Environmental Control - 1.04%
JPMorgan Chase & Co	474,459		30,484	Stericycle Inc ^(a)	42,546		5,164
PNC Financial Services Group Inc/The	362,533		32,722	Waste Connections Inc	407,306		22,190
State Street Corp	97,816		6,749		$		27,354
SVB Financial Group ^(a)	116,905		14,271
US Bancorp	562,656		23,733	Food - 2.80%
Wells Fargo & Co	971,862		52,617	Dairy Farm International Holdings Ltd ADR	138,724		4,581
	$		188,126	General Mills Inc	341,775		19,861
				Kroger Co/The	580,000		21,924
Beverages - 1.73%				McCormick & Co Inc/MD	232,362		19,514
Brown-Forman Corp - B Shares	124,835		13,255	Safeway, Inc. - CVR - Casa Ley ^(a),(b)	2,740		—
Coca-Cola Co/The	452,967		19,183	Safeway, Inc. - CVR - Property Development	2,740		—
PepsiCo Inc	129,123		13,195	Centers ^(a),(b),(c)
	$		45,633	Whole Foods Market Inc	267,071		8,001
Biotechnology - 0.76%					$		73,881
Gilead Sciences Inc	184,965		20,000	Gas - 1.44%
				Sempra Energy	370,803		37,974
Building Materials - 0.53%
Apogee Enterprises Inc	279,968		13,867	Healthcare - Products - 2.99%
				Becton Dickinson and Co	158,952		22,654
Chemicals - 2.18%				Bio-Techne Corp	140,762		12,415
EI du Pont de Nemours & Co	172,267		10,922	Edwards Lifesciences Corp ^(a)	120,248		18,897
FMC Corp	104,155		4,240	Halyard Health Inc ^(a)	193,028		5,729
Innospec Inc	53,065		2,931	Medtronic PLC	119,535		8,836
International Flavors & Fragrances Inc	164,862		19,134	Varian Medical Systems Inc ^(a)	131,432		10,321
PPG Industries Inc	195,185		20,350		$		78,852
	$		57,577
				Healthcare - Services - 1.61%
Commercial Services - 0.97%				DaVita HealthCare Partners Inc ^(a)	285,631		22,139
PayPal Holdings Inc ^(a)	188,713		6,796	Universal Health Services Inc	166,865		20,373
Robert Half International Inc	168,525		8,874		$		42,512
TrueBlue Inc ^(a)	337,511		9,778
				Housewares - 0.31%
	$		25,448	Tupperware Brands Corp	137,586		8,100
Computers - 5.11%
Apple Inc	776,505		92,792	Insurance - 2.00%
EMC Corp/MA	926,698		24,298	ACE Ltd	215,407		24,457
International Business Machines Corp	125,303		17,553	Chubb Corp/The	18,362		2,375
	$		134,643	MetLife Inc	187,872		9,465
Consumer Products - 0.88%				XL Group PLC	434,388		16,542
Kimberly-Clark Corp	94,844		11,354		$		52,839
WD-40 Co	123,327		11,787	Internet - 3.88%
	$		23,141	Alphabet Inc ^(a)	59,645		43,982
				Alphabet Inc ^(a)	21,939		15,594

Cosmetics & Personal Care - 0.62%				Amazon.com Inc ^(a)	51,950		32,515
Procter & Gamble Co/The	212,941		16,264
				eBay Inc ^(a)	118,126		3,296
				LinkedIn Corp ^(a)	29,213		7,037
					$		102,424


Schedule of Investments
Principal Capital Appreciation Fund
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)		Shares Held	Value(000			's)

Iron & Steel - 0.49%				Retail (continued)
Reliance Steel & Aluminum Co	217,107	$	13,018	Home Depot Inc/The		191,933		$	23,731
				Nordstrom Inc		360,120			23,483
				Starbucks Corp		719,187			44,999
Leisure Products & Services - 1.12%
Carnival Corp	302,390		16,353				$		200,256
Harley-Davidson Inc	268,528		13,279	Savings & Loans - 0.44%
	$		29,632	Washington Federal Inc		465,324			11,605

Machinery - Diversified - 0.93%
Deere & Co	273,021		21,296	Semiconductors - 2.99%
Tennant Co	55,621		3,221	Applied Materials Inc		634,419			10,639
	$		24,517	Avago Technologies Ltd		57,249			7,049
				Intel Corp		462,906			15,674
Media - 2.69%				Lam Research Corp		197,954			15,161
Comcast Corp - Class A	188,842		11,825	Microchip Technology Inc		413,665			19,976
Sirius XM Holdings Inc ^(a)	448,755		1,831
				QUALCOMM Inc		174,757			10,384
Viacom Inc	284,739		14,040				$		78,883
Walt Disney Co/The	379,476		43,162
	$		70,858	Software - 6.81%
				Adobe Systems Inc ^(a)		489,793			43,425
Metal Fabrication & Hardware - 0.46%				Autodesk Inc ^(a)		225,000			12,418
Precision Castparts Corp	52,770		12,180	Fair Isaac Corp		237,400			21,929
				Microsoft Corp		1,044,944			55,006
Miscellaneous Manufacturers - 2.21%				Omnicell Inc ^(a)		277,447			7,546
AptarGroup Inc	261,008		19,200	Oracle Corp		725,021			28,160
Crane Co	141,775		7,463	Tyler Technologies Inc ^(a)		65,887			11,224
Donaldson Co Inc	214,779		6,486				$		179,708
General Electric Co	872,471		25,232
				Telecommunications - 2.24%
	$		58,381
				Cisco Systems Inc		462,619			13,347
Oil & Gas - 5.20%				Verizon Communications Inc		977,239			45,813
Chevron Corp	314,909		28,619				$		59,160
Cimarex Energy Co	128,069		15,120
				Toys, Games & Hobbies - 0.58%
Devon Energy Corp	186,996		7,841
				Hasbro Inc		198,925			15,283
Energen Corp	201,578		11,722
Exxon Mobil Corp	499,151		41,300
HollyFrontier Corp	311,811		15,269	Transportation - 1.34%
Occidental Petroleum Corp	230,877		17,209	Expeditors International of Washington Inc		371,517			18,498
	$		137,080	Union Pacific Corp		187,961			16,794
							$		35,292
Oil & Gas Services - 0.96%
Natural Gas Services Group Inc ^(a)	13,905		313	Trucking & Leasing - 0.07%
Schlumberger Ltd	319,382		24,963	Greenbrier Cos Inc/The		50,680			1,928
	$		25,276
				TOTAL COMMON STOCKS			$		2,598,528

Pharmaceuticals - 6.71%				INVESTMENT COMPANIES - 1.87%		Shares Held	Value(000			's)
Abbott Laboratories	417,681		18,712
AbbVie Inc	215,107		12,810	Publicly Traded Investment Fund - 1.87%
Allergan PLC ^(a)	83,846		25,864	Goldman Sachs Financial Square Funds -		49,196,783			49,197
Bristol-Myers Squibb Co	298,356		19,677	Government Fund
Johnson & Johnson	358,073		36,176
McKesson Corp	201,011		35,941	TOTAL INVESTMENT COMPANIES			$		49,197
Perrigo Co PLC	54,310		8,567	Total Investments			$		2,647,725
Teva Pharmaceutical Industries Ltd ADR	132,595		7,848	Liabilities in Excess of Other Assets, Net - (0.39)%			$		(10,216	)
VCA Inc ^(a)	209,030		11,448
				TOTAL NET ASSETS - 100.00%			$		2,637,509
	$		177,043


Pipelines - 0.06%				(a)	Non-Income Producing Security
Magellan Midstream Partners LP	25,144		1,604
				(b)	Fair value of these investments is determined in good faith by the Manager
					under procedures established and periodically reviewed by the Board of
REITS - 2.92%					Directors. At the end of the period, the fair value of these securities totaled
Alexandria Real Estate Equities Inc	166,609		14,952		$0 or 0.00% of net assets.
Care Capital Properties Inc	22,109		729	(c)	Security is Illiquid. At the end of the period, the value of these securities
Essex Property Trust Inc	49,063		10,815		totaled $0 or 0.00% of net assets.
HCP Inc	148,061		5,508
Plum Creek Timber Co Inc	485,323		19,772
Sabra Health Care REIT Inc	228,281		5,177
Ventas Inc	302,944		16,274
Weyerhaeuser Co	131,541		3,858
	$		77,085

Retail - 7.59%
Copart Inc ^(a)	436,098		15,791
Costco Wholesale Corp	305,898		48,369
CVS Health Corp	341,590		33,742
Dollar General Corp	149,632		10,141


				Schedule of Investments
				Real Estate Securities Fund
				October 31, 2015


COMMON STOCKS - 97.43%	Shares Held	Value(000			's)

REITS - 97.43%
Alexandria Real Estate Equities Inc	482,695		$	43,317
American Tower Corp	378,985			38,744
Apartment Investment & Management Co	1,957,103			76,699
AvalonBay Communities Inc	536,462			93,790
Boston Properties Inc	784,509			98,730
Care Capital Properties Inc	408,843			13,471
CubeSmart	1,904,197			52,975
DDR Corp	2,362,958			39,698
Duke Realty Corp	1,916,646			39,675
Education Realty Trust Inc	623,310			22,383
EPR Properties	679,149			38,582
Equinix Inc	251,282			74,550
Equity One Inc	1,643,589			43,687
Equity Residential	1,711,680			132,347
Essex Property Trust Inc	548,743			120,965
Extra Space Storage Inc	220,791			17,495
Federal Realty Investment Trust	331,328			47,542
First Industrial Realty Trust Inc	2,445,211			53,012
General Growth Properties Inc	3,374,767			97,699
GEO Group Inc/The	127,798			4,124
Host Hotels & Resorts Inc	3,452,116			59,825
Hudson Pacific Properties Inc	697,223			19,920
Kilroy Realty Corp	793,478			52,243
Macerich Co/The	163,645			13,867
Pebblebrook Hotel Trust	1,419,034			48,503
Prologis Inc	2,368,917			101,224
Public Storage	714,403			163,927
Saul Centers Inc	369,833			20,736
Simon Property Group Inc	1,476,799			297,516
SL Green Realty Corp	838,269			99,435
STORE Capital Corp	716,218			16,237
Sun Communities Inc	522,553			35,021
Sunstone Hotel Investors Inc	2,691,073			38,913
Ventas Inc	1,674,884			89,975
VEREIT Inc	1,671,920			13,810
Vornado Realty Trust	308,572			31,027
Welltower Inc	887,418			57,567
		$		2,309,231
TOTAL COMMON STOCKS		$		2,309,231
INVESTMENT COMPANIES - 2.52%	Shares Held	Value(000			's)

Publicly Traded Investment Fund - 2.52%
BlackRock Liquidity Funds FedFund Portfolio	59,841,593			59,842

TOTAL INVESTMENT COMPANIES		$		59,842
Total Investments		$		2,369,073
Other Assets in Excess of Liabilities, Net - 0.05%		$		1,213
TOTAL NET ASSETS - 100.00%		$		2,370,286


INVESTMENT COMPANIES - 0.17%			Shares Held Value (000's)						Principal
						BONDS (continued)		Amount (000's) Value (000's)
Publicly Traded Investment Fund - 0.17%
Morgan Stanley Institutional Liquidity Funds -			4,785,937	$	4,786	Automobile Asset Backed Securities (continued)
Government Portfolio						Ford Credit Auto Owner Trust/Ford Credit
						2014-RE	V1
TOTAL INVESTMENT COMPANIES			$		4,786	2.26%, 11/15/2025^(a),(b)		$	11,327	$	11,430
			Principal			Santander Drive Auto Receivables Trust 2013-
BONDS- 99.85	%		Amount (000's) Value (000's)			1
						1.76%, 01/15/2019			4,500		4,513
Aerospace & Defense - 0.18%						Santander Drive Auto Receivables Trust 2013-
Rolls-Royce PLC						5
2.38%, 10/14/2020^(a)		$	5,000	$	5,004	1.55%, 10/15/2018			3,500		3,504
						2.25%, 06/17/2019^(b)			1,190		1,197
						2.73%, 10/15/2019^(b)			5,860		5,856
Agriculture - 0.93%
Cargill Inc						Santander Drive Auto Receivables Trust 2014-
6.00%, 11/27/2017^(a)			24,153		26,235	2
						1.62%, 02/15/2019			5,500		5,506
						Santander Drive Auto Receivables Trust 2014-
Airlines - 0.88%						3
Delta Air Lines 2009-1 Class A Pass Through						0.54%, 08/15/2017^(b)			688		688
Trust						2.13%, 08/17/2020^(b)			4,200		4,220
7.75%, 06/17/2021			10,795		12,171	Westlake Automobile Receivables Trust 2014-
UAL 2009-1 Pass Through Trust						2
10.40%, 05/01/2018			1,467		1,556	0.97%, 10/16/2017^(a),(b)			5,248		5,247
UAL 2009-2A Pass Through Trust						Westlake Automobile Receivables Trust 2015-
9.75%, 01/15/2017			10,256		10,948	1
			$		24,675	1.17%, 03/15/2018^(a),(b)			8,448		8,443
Automobile Asset Backed Securities - 8.72%						Westlake Automobile Receivables Trust 2015-
						2
AmeriCredit Automobile Receivables 2015-1						1.28%, 07/16/2018^(a),(b)			12,409		12,393
0.77%, 04/09/2018			8,362		8,359
						Westlake Automobile Receivables Trust 2015-
AmeriCredit Automobile Receivables Trust						3
2013-5						1.42%, 05/17/2021^(a),(b)			18,000		17,994
2.86%, 12/09/2019^(b)			9,300		9,388
AmeriCredit Automobile Receivables Trust									$		245,339
2014-1						Automobile Floor Plan Asset Backed Securities - 1.99%
0.90%, 02/08/2019			4,880		4,874	CNH Wholesale Master Note Trust
AmeriCredit Automobile Receivables Trust						0.80%, 08/15/2019^(a),(b)			9,159		9,146
2014-2						Ford Credit Floorplan Master Owner Trust A
0.54%, 10/10/2017^(b)			5,025		5,022	0.58%, 01/15/2018^(b)			9,664		9,666
AmeriCredit Automobile Receivables Trust						Nissan Master Owner Trust Receivables
2014-3						0.50%, 02/15/2018^(b)			9,327		9,323
0.64%, 04/09/2018			6,335		6,335	Volkswagen Credit Auto Master Trust
AmeriCredit Automobile Receivables Trust						0.54%, 07/22/2019^(a),(b)			12,327		12,175
2015-2						World Omni Master Owner Trust
0.83%, 09/10/2018^(b)			11,263		11,260	0.55%, 02/15/2018^(a),(b)			15,822		15,819
Capital Auto Receivables Asset Trust 2013-1									$		56,129
0.97%, 01/22/2018			14,327		14,322
1.29%, 04/20/2018			12,715		12,699	Automobile Manufacturers - 2.32%
Capital Auto Receivables Asset Trust 2014-1						Daimler Finance North America LLC
2.84%, 04/22/2019			4,400		4,463	0.75%, 03/02/2018^(a),(b)			9,495		9,384
Capital Auto Receivables Asset Trust 2014-2						1.38%, 08/01/2017^(a)			6,664		6,617
2.03%, 12/20/2018			9,000		9,054	Ford Motor Credit Co LLC
Capital Auto Receivables Asset Trust 2014-3						3.98%, 06/15/2016			18,631		18,919
0.51%, 02/21/2017^(b)			9,197		9,189	PACCAR Financial Corp
CPS Auto Receivables Trust 2013-A						1.45%, 03/09/2018			6,664		6,649
1.31%, 06/15/2020^(a),(b)			9,215		9,145	2.20%, 09/15/2019			9,327		9,365
CPS Auto Receivables Trust 2013-B						Toyota Motor Credit Corp
1.82%, 09/15/2020^(a),(b)			5,446		5,453	2.10%, 01/17/2019			14,327		14,482
CPS Auto Receivables Trust 2013-C									$		65,416
1.64%, 04/16/2018^(a)			3,283		3,279
						Banks- 16.44	%
CPS Auto Receivables Trust 2013-D
1.54%, 07/16/2018^(a),(b)			3,200		3,193	Bank of America Corp
3.97%, 11/15/2019^(a),(b)			1,000		1,003	2.60%, 01/15/2019			5,000		5,059
						2.63%, 10/19/2020			9,500		9,463
CPS Auto Receivables Trust 2014-B
1.11%, 11/15/2018^(a)			2,885		2,866	Bank of America NA
						0.62%, 06/15/2016^(b)			13,327		13,299
CPS Auto Receivables Trust 2014-C						0.64%, 06/15/2017^(b)			7,750		7,697
1.31%, 02/15/2019^(a),(b)			8,745		8,692
						5.30%, 03/15/2017			33,524		35,172
CPS Auto Receivables Trust 2014-D
1.49%, 04/15/2019^(a)			6,348		6,320	Bank of New York Mellon Corp/The
						2.20%, 03/04/2019			4,700		4,746
CPS Auto Receivables Trust 2015-C						2.20%, 05/15/2019			11,327		11,492
1.77%, 06/17/2019^(a)			13,857		13,861
						BB&T Corp
CPS Auto Trust						0.96%, 02/01/2019^(b)			5,664		5,642
1.48%, 03/16/2020^(a)			3,141		3,135
						Branch Banking & Trust Co
Ford Credit Auto Owner Trust 2015-REV2						0.63%, 05/23/2017^(b)			14,450		14,379
2.44%, 01/15/2027^(a),(b)			12,327		12,436


			Principal				Principal
BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)

Banks (continued)						Commercial Mortgage Backed Securities - 2.30%
Branch Banking & Trust Co	(continued)					Ginnie Mae
0.66%, 09/13/2016^(b)		$	17,425	$	17,392	0.59%, 07/16/2054^(b)	$	43,009	$	2,212
Capital One Financial Corp						0.69%, 03/16/2049^(b)		62,779		2,591
6.15%, 09/01/2016			12,930		13,446	0.84%, 01/16/2054^(b)		52,111		3,035
Capital One NA/Mclean VA						0.84%, 09/16/2055^(b)		44,114		2,550
0.98%, 02/05/2018^(b)			9,327		9,286	0.86%, 06/16/2055^(b)		48,587		2,709
1.65%, 02/05/2018			9,327		9,274	0.88%, 03/16/2052^(b)		42,798		3,205
Citigroup Inc						0.90%, 10/16/2054^(b)		56,672		2,895
0.80%, 08/14/2017^(b)			8,000		7,960	0.92%, 10/16/2054^(b)		73,122		4,401
1.09%, 04/08/2019^(b)			4,500		4,465	0.93%, 01/16/2055^(b)		107,762		5,669
1.63%, 10/26/2020^(b)			10,000		10,067	0.96%, 02/16/2055^(b)		78,213		3,580
1.70%, 04/27/2018			13,990		13,927	1.00%, 10/16/2054^(b)		84,219		4,908
6.13%, 05/15/2018			17,153		18,859	1.13%, 06/16/2045^(b)		85,662		5,882
Goldman Sachs Group Inc/The						1.14%, 08/16/2042^(b)		98,658		6,596
1.42%, 11/15/2018^(b)			9,909		9,959	1.20%, 07/16/2056^(b)		29,018		2,437
1.48%, 04/23/2020^(b)			23,990		24,017	1.22%, 02/16/2046^(b)		88,165		6,439
2.60%, 04/23/2020			4,798		4,818	1.27%, 10/16/2051^(b)		4,533		353
JPMorgan Chase Bank NA						1.41%, 12/16/2036^(b)		74,260		5,336
0.67%, 06/13/2016^(b)			6,000		5,991			$		64,798
5.88%, 06/13/2016			11,659		12,006
6.00%, 10/01/2017			29,480		31,905	Computers - 1.58%
KeyBank NA/Cleveland OH						Apple Inc
1.70%, 06/01/2018			6,500		6,491	0.90%, 05/12/2017		6,731		6,746
5.45%, 03/03/2016			14,351		14,562	1.00%, 05/03/2018		4,664		4,651
						Hewlett Packard Enterprise Co
Morgan Stanley						2.45%, 10/05/2017^(a)		9,500		9,528
1.17%, 01/24/2019^(b)			30,648		30,517
						2.85%, 10/05/2018^(a)		6,650		6,664
1.60%, 04/25/2018^(b)			16,490		16,709
1.88%, 01/05/2018			4,664		4,688	International Business Machines Corp
National City Bank/Cleveland OH						1.95%, 02/12/2019		16,740		16,884
0.70%, 06/07/2017^(b)			4,500		4,476			$		44,473
PNC Bank NA						Credit Card Asset Backed Securities - 1.35%
1.60%, 06/01/2018			4,500		4,492	Cabela's Credit Card Master Note Trust
4.88%, 09/21/2017			15,355		16,155	0.55%, 03/16/2020^(b)		5,878		5,869
6.88%, 04/01/2018			4,080		4,527	0.65%, 07/15/2022^(b)		9,495		9,397
PNC Funding Corp						0.68%, 06/15/2020^(a),(b)		5,914		5,902
5.63%, 02/01/2017			7,231		7,594	0.73%, 02/18/2020^(a),(b)		6,982		6,986
SunTrust Bank/Atlanta GA						0.85%, 08/16/2021^(a),(b)		9,745		9,732
7.25%, 03/15/2018			12,990		14,502			$		37,886
US Bank NA/Cincinnati OH
0.80%, 10/28/2019^(b)			14,209		14,139	Diversified Financial Services - 3.06%
Wells Fargo & Co						GE Capital International Funding Co
2.60%, 07/22/2020			14,327		14,450	0.96%, 04/15/2016^(a)		39,466		39,458
Wells Fargo Bank NA						Jefferies Group LLC
6.00%, 11/15/2017			8,500		9,235	3.88%, 11/09/2015		13,740		13,750
			$		462,858	5.50%, 03/15/2016		3,500		3,552
						Murray Street Investment Trust I
Beverages - 1.30%						4.65%, 03/09/2017^(b)		28,398		29,527
Anheuser-Busch InBev Finance Inc								$		86,287
2.15%, 02/01/2019			9,664		9,669
PepsiCo Inc						Electric - 4.32%
1.00%, 10/13/2017			4,750		4,741	Dominion Resources Inc/VA
2.15%, 10/14/2020			9,500		9,495	1.40%, 09/15/2017		9,327		9,281
SABMiller Holdings Inc						Indiantown Cogeneration LP
0.99%, 08/01/2018^(a),(b)			4,500		4,480	9.77%, 12/15/2020		9,024		10,242
2.45%, 01/15/2017^(a)			8,000		8,093	LG&E and KU Energy LLC
			$		36,478	2.13%, 11/15/2015		12,809		12,813
						NextEra Energy Capital Holdings Inc
Biotechnology - 1.69%						1.59%, 06/01/2017		6,664		6,661
Amgen Inc						7.30%, 09/01/2067^(b)		11,827		11,768
1.25%, 05/22/2017			9,000		8,985	Public Service Co of New Mexico
2.20%, 05/22/2019			9,327		9,368	7.95%, 05/15/2018		24,165		27,350
Biogen Inc						San Diego Gas & Electric Co
2.90%, 09/15/2020			14,000		14,123	1.91%, 02/01/2022		4,455		4,420
Gilead Sciences Inc						Southern California Edison Co
1.85%, 09/04/2018			4,750		4,798	1.85%, 02/01/2022		8,172		8,120
2.55%, 09/01/2020			10,250		10,347	Talen Energy Supply LLC
			$		47,621	6.50%, 05/01/2018		4,832		4,917
						Texas-New Mexico Power Co
Chemicals - 0.44%						9.50%, 04/01/2019^(a)		4,798		5,833
Airgas Inc
1.65%, 02/15/2018			12,592		12,515	TransAlta Corp
						6.65%, 05/15/2018		18,985		20,097
								$		121,502


Schedule of Investments
Short-Term Income Fund
October 31, 2015



				Principal						Principal
	BONDS (continued)		Amount (000's)			Value (000's)	BONDS (continued)		Amount (000's) Value (000's)

	Finance - Mortgage Loan/Banker - 8.11%						Home Equity Asset Backed Securities (continued)
	Fannie Mae						RASC Series 2003-KS10 Trust
	1.63%, 01/21/2020		$	47,286	$	47,551	4.47%, 03/25/2032		$	319	$	320
	1.75%, 06/20/2019			35,000		35,535	RASC Series 2005-AHL2 Trust
	1.75%, 09/12/2019			42,067		42,629	0.55%, 10/25/2035^(b)			3,541		3,490
	Freddie Mac						Soundview Home Loan Trust 2005-CTX1
	1.38%, 05/01/2020			103,148		102,583	0.62%, 11/25/2035^(b)			2,072		2,050
				$		228,298	Structured Asset Securities Corp Mortgage
							Loan Trust Series 2005-GEL4
	Food- 0.76	%					0.82%, 08/25/2035^(b)			1,200		1,150
	Ingredion Inc						Terwin Mortgage Trust Series TMTS 2005-
	3.20%, 11/01/2015			10,909		10,909	14	HE
	Kraft Heinz Foods Co						4.85%, 08/25/2036^(b)			1,702		1,748
	1.60%, 06/30/2017^(a)			5,664		5,668
	2.00%, 07/02/2018^(a)			4,731		4,745	Wells Fargo Home Equity Asset-Backed
							Securities 2004-2 Trust
				$		21,322	1.04%, 10/25/2034^(b)			285		279
	Gas- 0.88	%					5.00%, 10/25/2034			9,977		9,951
	Laclede Group Inc/The									$		48,051
	1.07%, 08/15/2017^(b)			24,886		24,789
							Home Furnishings - 0.50%
							Samsung Electronics America Inc
	Healthcare - Products - 0.68%						1.75%, 04/10/2017^(a)			13,990		13,982
	Becton Dickinson and Co
	1.80%, 12/15/2017			4,664		4,689	Insurance - 5.93%
	2.68%, 12/15/2019			4,664		4,717	Berkshire Hathaway Finance Corp
	Medtronic Inc						1.60%, 05/15/2017			11,490		11,607
	2.50%, 03/15/2020			9,495		9,646	Hartford Financial Services Group Inc/The
				$		19,052	8.13%, 06/15/2068^(b)			14,750		16,380
							Lincoln National Corp
	Healthcare - Services - 0.75%						7.00%, 05/17/2066^(b)			5,664		4,740
	Anthem Inc
	5.88%, 06/15/2017			11,164		11,913	MassMutual Global Funding II
	Roche Holdings Inc						2.00%, 04/05/2017^(a)			5,430		5,494
	0.67%, 09/30/2019^(a),(b)			9,327		9,268	2.10%, 08/02/2018^(a)			12,995		13,156
							2.35%, 04/09/2019^(a)			4,500		4,561
				$		21,181
							MetLife Inc
	Home Equity Asset Backed Securities - 1.71%						6.82%, 08/15/2018			10,245		11,625
	ABFC 2005-OPT1 Trust						Metropolitan Life Global Funding I
	0.56%, 07/25/2035^(b)			83		83	1.30%, 04/10/2017^(a)			6,995		7,018
	ABFC 2005-WMC1 Trust						2.30%, 04/10/2019^(a)			9,827		9,935
	0.86%, 06/25/2035^(b)			1,142		1,135	New York Life Global Funding
	ACE Securities Corp Home Equity Loan Trust						1.45%, 12/15/2017^(a)			13,909		13,932
	Series 2005-AG1						1.95%, 02/11/2020^(a)			16,941		16,777
	0.56%, 08/25/2035^(b)			99		97	2.15%, 06/18/2019^(a)			12,626		12,683
	ACE Securities Corp Home Equity Loan Trust						2.45%, 07/14/2016^(a)			9,327		9,445
	Series 2005-HE2						Prudential Financial Inc
	0.92%, 04/25/2035^(b)			906		903	8.88%, 06/15/2068^(b)			25,950		29,599
	ACE Securities Corp Home Equity Loan Trust									$		166,952
	Series 2005-WF1
	0.88%, 05/25/2035^(b)			396		395	Internet - 0.34%
	Asset Backed Securities Corp Home Equity						Amazon.com Inc
	Loan Trust Series OOMC 2005-HE6						2.60%, 12/05/2019			9,327		9,549
	0.71%, 07/25/2035^(b)			2,464		2,446
	Bayview Financial Acquisition Trust
	0.82%, 08/28/2044^(b)			4,350		4,339
							Machinery - Diversified - 0.83%
	5.66%, 12/28/2036^(b)			163		162	John Deere Capital Corp
							1.35%, 01/16/2018			9,327		9,323
	Bear Stearns Asset Backed Securities I Trust						2.05%, 03/10/2020			13,990		13,920
	2006	-PC1								$		23,243
	0.53%, 12/25/2035^(b)			2,620		2,613
	Credit Suisse First Boston Mortgage Securities						Manufactured Housing Asset Backed Securities - 0.00%
	Corp						Conseco Financial Corp
	4.80%, 05/25/2035			3,585		3,662	7.70%, 09/15/2026			142		148
	Home Equity Asset Trust 2005-4
	0.90%, 10/25/2035^(b)			4,283		4,200
							Media- 0.39	%
	JP Morgan Mortgage Acquisition Corp 2005-						Time Warner Cable Inc
	FLD1						8.25%, 04/01/2019			9,495		11,068
	0.69%, 07/25/2035^(b)			387		387
	JP Morgan Mortgage Acquisition Corp 2005-
	OPT1						Mining - 0.47%
	0.65%, 06/25/2035^(b)			1,039		1,032	Glencore Finance Canada Ltd
	New Century Home Equity Loan Trust 2005-						2.70%, 10/25/2017^(a),(b)			14,159		13,182
	3
	0.68%, 07/25/2035^(b)			7,634		7,609


Schedule of Investments
Short-Term Income Fund
October 31, 2015



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)

Miscellaneous Manufacturers - 0.11%					Mortgage Backed Securities (continued)
Ingersoll-Rand Global Holding Co Ltd					Springleaf Mortgage Loan Trust 2013-1
6.88%, 08/15/2018	$	2,850	$	3,201	1.27%, 06/25/2058^(a),(b)	$	16,255	$	16,248
					2.31%, 06/25/2058^(a),(b)		8,523		8,542
					3.14%, 06/25/2058^(a)		4,106		4,116

Mortgage Backed Securities - 3.52%					Springleaf Mortgage Loan Trust 2013-2
Alternative Loan Trust 2004-J8					1.78%, 12/25/2065^(a)		6,217		6,221
6.00%, 02/25/2017		141		141	3.52%, 12/25/2065^(a),(b)		6,806		6,876


Banc of America Alternative Loan Trust 2003-
10					WaMu Mortgage Pass-Through Certificates
5.00%, 12/25/2018		471		478	Series 2003-S8 Trust
					5.00%, 09/25/2018		139		141
Banc of America Funding 2004-1 Trust
5.25%, 02/25/2019		652		671			$		99,007
Banc of America Funding 2004-3 Trust					Oil & Gas - 3.08%
4.75%, 09/25/2019		593		600	BP Capital Markets PLC
Banc of America Mortgage Trust 2004-8					4.75%, 03/10/2019		10,327		11,206
5.25%, 10/25/2019		310		317	Chevron Corp
Banc of America Mortgage Trust 2005-7					1.72%, 06/24/2018		12,125		12,251
5.00%, 08/25/2020		46		47	Chevron Phillips Chemical Co LLC / Chevron
BCAP LLC 2011-RR11 Trust					Phillips Chemical Co LP
2.58%, 03/26/2035^(a),(b)		3,011		3,024	1.70%, 05/01/2018^(a)		9,495		9,457
CHL Mortgage Pass-Through Trust 2003-46					2.45%, 05/01/2020^(a)		4,832		4,818
2.68%, 01/19/2034^(b)		1,280		1,281	Phillips 66
CHL Mortgage Pass-Through Trust 2004-J1					2.95%, 05/01/2017		15,490		15,840
4.50%, 01/25/2019^(b)		120		121	Rowan Cos Inc
CHL Mortgage Pass-Through Trust 2004-J7					7.88%, 08/01/2019		5,664		5,703
5.00%, 09/25/2019		612		628	Shell International Finance BV
Citigroup Mortgage Loan Trust 2009-6					2.13%, 05/11/2020		11,495		11,517
2.74%, 07/25/2036^(a),(b)		888		889	Total Capital International SA
Credit Suisse First Boston Mortgage Securities					0.88%, 08/10/2018^(b)		5,430		5,439
Corp					1.55%, 06/28/2017		10,327		10,409
1.16%, 05/25/2034^(b)		560		541			$		86,640
5.00%, 09/25/2019		101		97
5.00%, 10/25/2019		567		569	Oil & Gas Services - 0.68%
Credit Suisse Mortgage Capital Certificates					Weatherford International Ltd/Bermuda
2.38%, 07/27/2037^(a),(b)		1,370		1,371	5.50%, 02/15/2016		19,153		19,153
Freddie Mac REMICS
0.65%, 06/15/2023^(b)		8		8
					Other Asset Backed Securities - 6.28%
Ginnie Mae					Ameriquest Mortgage Securities Inc Asset-
4.50%, 08/20/2032		101		104	Backed Pass-Through Ctfs Ser 2004-R11
GSMSC Pass-Through Trust 2009-4R					0.80%, 11/25/2034^(b)		414		412
0.64%, 12/26/2036^(a),(b)		3,337		3,293
					Ameriquest Mortgage Securities Inc Asset-
JP Morgan Mortgage Trust 2004-A3					Backed Pass-Through Ctfs Ser 2005-R1
2.46%, 07/25/2034^(b)		1,557		1,548	0.87%, 03/25/2035^(b)		2,294		2,288
JP Morgan Mortgage Trust 2004-S1					Carrington Mortgage Loan Trust Series 2005-
5.00%, 09/25/2034		1,581		1,633	NC4
JP Morgan Resecuritization Trust Series 2010-					0.60%, 09/25/2035^(b)		351		350
4					Citigroup Mortgage Loan Trust Inc
2.32%, 10/26/2036^(a),(b)		1,037		1,037	0.63%, 07/25/2035^(b)		485		482
MASTR Alternative Loan Trust 2003-9					Credit-Based Asset Servicing and
6.50%, 01/25/2019		547		568	Securitization LLC
MASTR Asset Securitization Trust 2004-11					5.33%, 07/25/2035^(b)		2,301		2,312
5.00%, 12/25/2019		118		121	CWABS Asset-Backed Certificates Trust
MASTR Asset Securitization Trust 2004-9					2005-3
5.00%, 09/25/2019		532		539	0.65%, 08/25/2035^(b)		902		900
PHH Mortgage Trust Series 2008-CIM1					Drug Royalty II LP 2
5.22%, 06/25/2038		4,126		4,181	3.48%, 07/15/2023^(a),(b)		11,244		11,394
Prime Mortgage Trust 2005-2					Fieldstone Mortgage Investment Trust Series
5.25%, 07/25/2020^(b)		964		990	2005-1
Provident Funding Mortgage Loan Trust 2005-					1.28%, 03/25/2035^(b)		1,872		1,871
1					First Franklin Mortgage Loan Trust 2005-
0.49%, 05/25/2035^(b)		4,999		4,820	FF4
RALI Series 2003-QS23 Trust					0.84%, 05/25/2035^(b)		503		500
5.00%, 12/26/2018		1,419		1,435	JP Morgan Mortgage Acquisition Corp 2005-
RALI Series 2004-QS3 Trust					OPT2
5.00%, 03/25/2019		886		889	0.49%, 12/25/2035^(b)		2,265		2,240
RBSSP Resecuritization Trust 2009-7					Mastr Specialized Loan Trust
0.59%, 06/26/2037^(a),(b)		1,024		982	1.45%, 11/25/2034^(a),(b)		238		252
5.00%, 09/26/2036^(a),(b)		663		677
					MVW Owner Trust 2015-1
Sequoia Mortgage Trust 2013-4					2.52%, 12/20/2032^(a),(b)		16,383		16,463
1.55%, 04/25/2043^(b)		13,910		13,458	NYCTL 2014-A Trust
Sequoia Mortgage Trust 2013-8					1.03%, 11/10/2027^(a),(c)		1,926		1,924
2.25%, 06/25/2043^(b)		10,086		9,805
					OneMain Financial Issuance Trust 2014-1
					2.43%, 06/18/2024^(a),(b)		23,794		23,797


			Principal					Principal
BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)

Other Asset Backed Securities (continued)						REITS (continued)
OneMain Financial Issuance Trust 2014-2						BioMed Realty LP
2.47%, 09/18/2024^(a)		$	20,653	$	20,672	2.63%, 05/01/2019	$	7,664	$	7,404
OneMain Financial Issuance Trust 2015-2						3.85%, 04/15/2016		7,327		7,388
2.57%, 07/18/2025^(a)			14,260		14,223	Digital Delta Holdings LLC
PFS Financing Corp						3.40%, 10/01/2020^(a)		6,700		6,734
0.75%, 02/15/2018^(a),(b)			18,653		18,637	HCP Inc
0.80%, 02/15/2019^(a),(b)			11,495		11,440	6.30%, 09/15/2016		10,366		10,788
0.80%, 10/15/2019^(a),(b)			9,164		9,059	Healthcare Realty Trust Inc
0.82%, 04/15/2020^(a),(b)			5,664		5,634	5.75%, 01/15/2021		6,997		7,768
1.15%, 02/15/2019^(a),(b)			4,600		4,583	Kimco Realty Corp
PFS Tax Lien Trust 2014-1						4.30%, 02/01/2018		6,664		7,011
1.44%, 04/15/2016^(a),(b)			10,409		10,404	Ventas Realty LP
RAMP Series 2005-RZ4 Trust						1.55%, 09/26/2016		7,495		7,527
0.60%, 11/25/2035^(b)			1,785		1,768	Welltower Inc
Securitized Asset Backed Receivables LLC						3.63%, 03/15/2016		5,745		5,803
Trust 2005-OP2								$		72,310
0.52%, 10/25/2035^(b)			4,581		4,444
						Savings & Loans - 0.00%
Securitized Asset Backed Receivables LLC						Washington Mutual Bank / Henderson NV
Trust 2006-OP1						0.00%, 01/15/2013^(e)		1,200		1
0.50%, 10/25/2035^(b)			206		205
Springleaf Funding Trust 2013-A
2.58%, 09/15/2021^(a),(b)			1,272		1,274	Software - 1.20%
Trafigura Securitisation Finance PLC 2014-1						Microsoft Corp
1.15%, 10/15/2021^(a),(b),(c)			8,829		8,828	1.30%, 11/03/2018^(d)		9,500		9,508
Wachovia Mortgage Loan Trust Series 2005-						1.85%, 02/12/2020		9,327		9,360
WMC1						Oracle Corp
0.94%, 10/25/2035^(b)			485		483	0.83%, 10/08/2019^(b)		5,000		4,980
			$		176,839	2.25%, 10/08/2019		4,750		4,812
						5.75%, 04/15/2018		4,664		5,149
Pharmaceuticals - 3.15%
Abbott Laboratories								$		33,809
2.00%, 03/15/2020			18,653		18,641	Student Loan Asset Backed Securities - 4.00%
AbbVie Inc						KeyCorp Student Loan Trust 2004-A
1.20%, 11/06/2015			23,317		23,318	0.62%, 10/28/2041^(b)		2,311		2,288
1.80%, 05/14/2018			4,798		4,802	KeyCorp Student Loan Trust 2006-A
2.50%, 05/14/2020			6,664		6,589	0.52%, 06/27/2029^(b)		862		861
Actavis Funding SCS						0.64%, 09/27/2035^(b)		34,317		33,509
1.85%, 03/01/2017			9,664		9,697	SLC Private Student Loan Trust 2006-A
2.35%, 03/12/2018			11,995		12,052	0.49%, 07/15/2036^(b)		9,202		9,106
Mead Johnson Nutrition Co						SLC Private Student Loan Trust 2010-B
3.00%, 11/15/2020^(d)			4,750		4,769	3.70%, 07/15/2042^(a),(b)		2,940		3,032
Merck & Co Inc						SLM Private Credit Student Loan Trust 2002-
1.10%, 01/31/2018			8,827		8,829	A
			$		88,697	0.89%, 12/16/2030^(b)		9,849		9,559

Pipelines - 2.58%						SLM Private Credit Student Loan Trust 2004-
						A
Buckeye Partners LP						0.54%, 03/16/2020^(b)		582		582
2.65%, 11/15/2018			11,316		10,951	0.74%, 06/15/2033^(b)		2,750		2,590
Columbia Pipeline Group Inc
2.45%, 06/01/2018^(a)			4,832		4,839	SLM Private Credit Student Loan Trust 2004-
3.30%, 06/01/2020^(a)			4,832		4,820	B
						0.54%, 06/15/2021^(b)		9,024		8,982
Florida Gas Transmission Co LLC
7.90%, 05/15/2019^(a)			10,271		11,826	SLM Private Credit Student Loan Trust 2005-
						B
Hiland Partners LP / Hiland Partners Finance						0.52%, 03/15/2023^(b)		7,740		7,663
Corp						0.61%, 12/15/2023^(b)		6,765		6,611
7.25%, 10/01/2020^(a)			16,599		17,346

TransCanada PipeLines Ltd						SLM Private Credit Student Loan Trust 2006-
6.35%, 05/15/2067^(b)			9,664		8,021	A
						0.53%, 12/15/2023^(b)		2,579		2,540

Williams Partners LP / ACMP Finance Corp						SLM Private Education Loan Trust 2013-A
6.13%, 07/15/2022			14,495		14,838	0.80%, 08/15/2022^(a),(b)		8,899		8,872
			$		72,641	SLM Private Education Loan Trust 2013-B
Real Estate - 0.85%						0.85%, 07/15/2022^(a),(b)		4,262		4,256
Prologis LP						1.85%, 06/17/2030^(a),(b)		9,664		9,611
7.38%, 10/30/2019			8,653		10,159	SLM Private Education Loan Trust 2014-A
WEA Finance LLC / Westfield UK & Europe						0.80%, 07/15/2022^(a),(b)		2,538		2,529
Finance PLC								$		112,591
1.75%, 09/15/2017^(a)			7,400		7,376
2.70%, 09/17/2019^(a)			6,500		6,478	Telecommunications - 2.14%
						AT&T Inc
			$		24,013	0.70%, 02/12/2016^(b)		9,327		9,324
REITS- 2.57	%					2.45%, 06/30/2020		6,664		6,599
Alexandria Real Estate Equities Inc						3.00%, 06/30/2022		4,798		4,706
2.75%, 01/15/2020			11,990		11,887


				Principal				(c)	Fair value of these investments is determined in good faith by the Manager
BONDS (continued)			Amount (000's)				Value (000's)		under procedures established and periodically reviewed by the Board of
									Directors. At the end of the period, the fair value of these securities totaled
Telecommunications (continued)									$10,752 or 0.38% of net assets.
Cisco Systems Inc								(d)	Security purchased on a when-issued basis.
	4.95%, 02/15/2019		$		13,990	$	15,394	(e)	Non-Income Producing Security
Verizon Communications Inc
	2.09%, 09/14/2018^(b)				4,664		4,791
	3.65%, 09/14/2018				8,250		8,702
	5.50%, 02/15/2018				4,250		4,611		Portfolio Summary (unaudited)
Vodafone Group PLC								Sector		Percent
	1.63%, 03/20/2017				6,164		6,163	Financial		28.85	%
					$		60,290	Asset Backed Securities		24.05	%
								Consumer, Non-cyclical		9.26	%

								Government		8.11	%
Transportation - 0.32%
	Ryder System Inc							Energy		6.34	%
	2.45%, 11/15/2018				8,995		9,059
								Mortgage Securities		5.87	%
								Utilities		5.20	%
Trucking & Leasing - 0.52%								Consumer, Cyclical		3.70	%
Penske Truck Leasing Co Lp / PTL Finance								Communications		2.87	%
Corp								Technology		2.78	%
	2.50%, 03/15/2016^(a)				6,164		6,195	Industrial		1.96	%
	3.75%, 05/11/2017^(a)				8,169		8,396	Basic Materials		0.91	%
					$		14,591	Exchange Traded Funds		0.17	%
TOTAL BONDS					$		2,810,875	Liabilities in Excess of Other Assets, Net		(0.07	)%
U.S. GOVERNMENT & GOVERNMENT				Principal				TOTAL NET ASSETS		100.00	%
AGENCY OBLIGATIONS - 0.05%			Amount (000's)				Value (000's)

Federal Home Loan Mortgage Corporation (FHLMC) -0.01		%
	2.33%, 11/01/2021^(b)		$		6	$	6
	2.47%, 09/01/2035^(b)				115		122
	6.00%, 04/01/2017				12		12
	6.00%, 05/01/2017				19		20
	7.00%, 12/01/2022				100		106
	9.50%, 08/01/2016				1		1
					$		267

Federal National Mortgage Association (FNMA) - 0.04%
	2.16%, 12/01/2032^(b)				56		59
	2.21%, 10/01/2035^(b)				262		279
	2.30%, 11/01/2022^(b)				2		2
	2.33%, 07/01/2034^(b)				49		52
	2.35%, 02/01/2037^(b)				151		160
	2.37%, 08/01/2034^(b)				70		75
	2.37%, 01/01/2035^(b)				116		123
	2.38%, 07/01/2034^(b)				176		188
	2.41%, 11/01/2032^(b)				45		47
	2.45%, 02/01/2035^(b)				26		28
	4.12%, 11/01/2035^(b)				9		9
	5.60%, 04/01/2019^(b)				2		2
	7.50%, 10/01/2029				5		6
	8.00%, 05/01/2027				2		2
	8.50%, 11/01/2017				2		2
	10.00%, 05/01/2022				2		2
					$		1,036

Government National Mortgage Association (GNMA) -0.00		%
	9.00%, 04/20/2025				1		2
	10.00%, 01/15/2019				21		22
					$		24
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS					$		1,327
Total Investments					$		2,816,988
Liabilities in Excess of Other Assets, Net - (0.07)%					$		(1,947)
TOTAL NET ASSETS - 100.00%					$		2,815,041


(a)	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 $774,237 or 27.50% of net
	assets.
(b)	Variable Rate. Rate shown is in effect at October 31, 2015.


COMMON STOCKS - 96.18%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Aerospace & Defense - 1.43%				Commercial Services (continued)
Astronics Corp ^(a)	61,180	$	2,313	Sabre Corp	283,550	$	8,314
Astronics Corp - Class B ^(a)	9,177		342	Team Health Holdings Inc ^(a)	114,830		6,852
Esterline Technologies Corp ^(a)	32,150		2,477	TransUnion ^(a)	71,710		1,844
Spirit AeroSystems Holdings Inc ^(a)	64,540		3,404		$		47,238

	$		8,536	Computers - 4.54%
Airlines - 0.52%				Barracuda Networks Inc ^(a)	81,000		1,554
Virgin America Inc ^(a)	87,260		3,107	CACI International Inc ^(a)	91,010		8,832
				Manhattan Associates Inc ^(a)	109,940		8,009
				NetScout Systems Inc ^(a)	193,680		6,947
Apparel - 2.05%				Pure Storage Inc ^(a)	104,540		1,843
G-III Apparel Group Ltd ^(a)	117,120		6,452
Skechers U.S.A. Inc ^(a)	186,360		5,815		$		27,185
	$		12,267	Diversified Financial Services - 2.53%
				CBOE Holdings Inc	104,710		7,020
Automobile Parts & Equipment - 2.42%				Cowen Group Inc ^(a)	333,980		1,406
American Axle & Manufacturing Holdings Inc	180,800		4,006	Evercore Partners Inc - Class A	61,750		3,334
(a)
				Houlihan Lokey Inc	154,720		3,390
Cooper Tire & Rubber Co	251,583		10,514		$		15,150
	$		14,520
				Electric - 2.03%
Banks - 9.24%				Avista Corp	155,344		5,258
Central Pacific Financial Corp	210,090		4,698	Portland General Electric Co	185,760		6,888
Chemical Financial Corp	36,890		1,252		$		12,146
First Merchants Corp	32,290		847
First of Long Island Corp/The	31,144		865	Electronics - 0.31%
FNB Corp/PA	331,760		4,469	Fluidigm Corp ^(a)	25,567		276
Great Western Bancorp Inc	152,730		4,316	Itron Inc ^(a)	42,720		1,569
Hanmi Financial Corp	67,264		1,715		$		1,845
National Penn Bancshares Inc	366,600		4,414
PacWest Bancorp	187,000		8,422	Energy - Alternate Sources - 0.58%
PrivateBancorp Inc	196,440		8,217	Pattern Energy Group Inc	149,722		3,502
Renasant Corp	63,040		2,183
WesBanco Inc	61,370		2,004	Engineering & Construction - 2.67%
Western Alliance Bancorp ^(a)	126,950		4,538	Dycom Industries Inc ^(a)	57,760		4,395
Wilshire Bancorp Inc	101,660		1,087	EMCOR Group Inc	173,680		8,385
Wintrust Financial Corp	125,400		6,331	MasTec Inc ^(a)	193,200		3,240
	$		55,358		$		16,020

Biotechnology - 2.46%				Entertainment - 2.91%
Acceleron Pharma Inc ^(a)	31,040		969	Isle of Capri Casinos Inc ^(a)	172,328		3,297
AMAG Pharmaceuticals Inc ^(a)	4,870		195	Marriott Vacations Worldwide Corp	95,940		6,179
Aratana Therapeutics Inc ^(a)	94,078		658	Vail Resorts Inc	69,480		7,932
Bellicum Pharmaceuticals Inc ^(a)	22,800		285		$		17,408
BIND Therapeutics Inc ^(a)	106,786		494
BIND Therapeutics Inc - Warrants ^(a),(b)	17,472		—	Food - 1.73%
Bluebird Bio Inc ^(a)	4,525		349	Amplify Snack Brands Inc ^(a)	100,950		1,220
Cambrex Corp ^(a)	51,640		2,374	Cal-Maine Foods Inc	90,894		4,859
Cytokinetics Inc - Warrants ^(a),(b),(c)	110,568		61	SUPERVALU Inc ^(a)	655,930		4,309
Epizyme Inc ^(a)	26,190		343		$		10,388
Exact Sciences Corp ^(a)	77,412		645

Fate Therapeutics Inc ^(a)	115,300		507	Gas - 1.04%
				Southwest Gas Corp	101,330		6,228
Genocea Biosciences Inc ^(a)	69,010		331
Insmed Inc ^(a)	63,150		1,253
Intercept Pharmaceuticals Inc ^(a)	3,480		547	Hand & Machine Tools - 0.66%
MacroGenics Inc ^(a)	36,450		1,133	Regal Beloit Corp	62,030		3,957
NewLink Genetics Corp ^(a)	21,670		829
Seattle Genetics Inc ^(a)	16,280		675

(a)				Healthcare - Products - 2.16%
Spark Therapeutics Inc	5,960		321	EndoChoice Holdings Inc ^(a)	79,330		819
(a)
Ultragenyx Pharmaceutical Inc	20,970		2,083	ICU Medical Inc ^(a)	55,670		6,122
(a)
Versartis Inc	63,610		657	K2M Group Holdings Inc ^(a)	127,700		2,331
	$		14,709	LDR Holding Corp ^(a)	55,430		1,402
				Nevro Corp ^(a)	39,760		1,621

Building Materials - 1.12%				STAAR Surgical Co ^(a)	79,640		649
Universal Forest Products Inc	45,650		3,316
US Concrete Inc ^(a)	61,400		3,405		$		12,944
	$		6,721	Healthcare - Services - 1.95%
				Centene Corp ^(a)	82,130		4,885
Commercial Services - 7.89%
ABM Industries Inc	159,050		4,517	HealthSouth Corp	174,300		6,071
Huron Consulting Group Inc ^(a)	34,180		1,651	Natera Inc ^(a)	15,459		127
				Teladoc Inc ^(a)	30,400		598
Korn/Ferry International	206,990		7,528
Live Nation Entertainment Inc ^(a)	113,845		3,106		$		11,681
Navigant Consulting Inc ^(a)	85,210		1,465

(a)				Home Builders - 0.76%
On Assignment Inc	103,320		4,661	Installed Building Products Inc ^(a)	206,171		4,567
PAREXEL International Corp ^(a)	115,660		7,300


Schedule of Investments
SmallCap Fund
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)		Shares Held	Value(000			's)

Insurance - 3.95%				Retail (continued)
American Equity Investment Life Holding Co	136,870	$	3,515	Citi Trends Inc		42,320		$	1,125
American Financial Group Inc/OH	103,740		7,489	Flex Pharma Inc ^(a)		43,280			490
AmTrust Financial Services Inc	11,832		807	Freshpet Inc ^(a)		60,940			594
Argo Group International Holdings Ltd	51,409		3,214	Kirkland's Inc		108,925			2,504
First American Financial Corp	135,730		5,176	Office Depot Inc ^(a)		1,028,720			7,839
Primerica Inc	72,000		3,429	Penske Automotive Group Inc		117,879			5,757
	$		23,630	Red Robin Gourmet Burgers Inc ^(a)		63,400			4,748
				Rite Aid Corp ^(a)		945,040			7,447
Internet - 2.61%				Wendy's Co/The		81,857			750
CDW Corp/DE	232,197		10,377
GoDaddy Inc ^(a)	36,660		1,008				$		39,482
Intralinks Holdings Inc ^(a)	182,300		1,595	Savings & Loans - 0.95%
MaxPoint Interactive Inc ^(a)	177,160		854	Berkshire Hills Bancorp Inc		41,730			1,194
Rapid7 Inc ^(a)	20,302		417	Oritani Financial Corp		56,670			902
Rubicon Project Inc/The ^(a)	91,452		1,386	Provident Financial Services Inc		177,610			3,609
	$		15,637				$		5,705

Investment Companies - 0.16%				Semiconductors - 1.19%
Apollo Investment Corp	11,184		60	Entegris Inc ^(a)		226,420			2,905
THL Credit Inc	76,840		880	Qorvo Inc ^(a)		96,765			4,251
	$		940				$		7,156

Office Furnishings - 0.57%				Software - 6.52%
Interface Inc	175,280		3,427	2U Inc ^(a)		135,005			2,832
				Acxiom Corp ^(a)		169,580			3,751
				Apigee Corp ^(a)		86,631			836
Oil & Gas - 2.12%				Appfolio Inc ^(a)		47,170			826
Carrizo Oil & Gas Inc ^(a)	60,530		2,278
				Aspen Technology Inc ^(a)		190,000			7,864
Northern Oil and Gas Inc ^(a)	383,390		1,932
				Black Knight Financial Services Inc ^(a)		94,800			3,416
PDC Energy Inc ^(a)	49,510		2,987
RSP Permian Inc ^(a)	123,940		3,399	Blackbaud Inc		113,690			7,127
				BroadSoft Inc ^(a)		32,750			1,047
Western Refining Inc	49,780		2,072	MINDBODY Inc ^(a)		102,370			1,601
	$		12,668	SYNNEX Corp		83,420			7,378
Oil & Gas Services - 0.42%				Workiva Inc ^(a)		143,150			2,374
Matrix Service Co ^(a)	111,510		2,531				$		39,052

				Telecommunications - 2.28%
Packaging & Containers - 0.51%				ARRIS Group Inc ^(a)		135,181			3,820
Graphic Packaging Holding Co	215,660		3,054	Plantronics Inc		132,470			7,103
				West Corp		115,810			2,758
							$		13,681
Pharmaceuticals - 5.29%
Anacor Pharmaceuticals Inc ^(a)	14,120		1,587	Transportation - 2.74%
Array BioPharma Inc ^(a)	155,040		794	ArcBest Corp		79,160			2,050
Cerulean Pharma Inc ^(a)	120,170		439	Ardmore Shipping Corp		128,980			1,851
Chimerix Inc ^(a)	15,900		623	Atlas Air Worldwide Holdings Inc ^(a)		102,640			4,233
Clovis Oncology Inc ^(a)	16,870		1,685	Matson Inc		148,860			6,822
Concert Pharmaceuticals Inc ^(a)	43,129		979	Navigator Holdings Ltd ^(a)		99,940			1,432
DexCom Inc ^(a)	19,100		1,591				$		16,388
Dyax Corp ^(a)	23,920		659	TOTAL COMMON STOCKS			$		576,119
FibroGen Inc ^(a)	31,870		743
				INVESTMENT COMPANIES - 2.50%		Shares Held	Value(000			's)
Nektar Therapeutics ^(a)	93,150		1,106
Neurocrine Biosciences Inc ^(a)	49,140		2,412	Publicly Traded Investment Fund - 2.50%
Orexigen Therapeutics Inc ^(a)	305,790		930	Goldman Sachs Financial Square Funds -		14,949,394			14,949
PRA Health Sciences Inc ^(a)	163,040		5,713	Government Fund
Prestige Brands Holdings Inc ^(a)	169,270		8,296
ProQR Therapeutics NV ^(a)	25,125		366	TOTAL INVESTMENT COMPANIES			$		14,949
Proteon Therapeutics Inc ^(a)	58,150		797	Total Investments			$		591,068
Relypsa Inc ^(a)	49,550		792	Other Assets in Excess of Liabilities, Net - 1.32%			$		7,909
Revance Therapeutics Inc ^(a)	23,876		935	TOTAL NET ASSETS - 100.00%			$		598,977
SCYNEXIS Inc ^(a)	78,360		501
Vanda Pharmaceuticals Inc ^(a)	68,425		735
	$		31,683	(a) Non-Income Producing Security
				(b)	Fair value of these investments is determined in good faith by the Manager
REITS - 9.28%					under procedures established and periodically reviewed by the Board of
Alexandria Real Estate Equities Inc	83,450		7,489		Directors. At the end of the period, the fair value of these securities totaled
CubeSmart	417,440		11,613		$61 or 0.01% of net assets.
First Industrial Realty Trust Inc	353,480		7,663	(c)	Security is Illiquid. At the end of the period, the value of these securities
Highwoods Properties Inc	295,070		12,821		totaled $61 or 0.01% of net assets.
LaSalle Hotel Properties	133,020		3,912
Mid-America Apartment Communities Inc	99,990		8,518
QTS Realty Trust Inc	83,510		3,592
	$		55,608

Retail - 6.59%
Caleres Inc	269,240		8,228


Schedule of Investments
SmallCap Value Fund II
October 31, 2015



COMMON STOCKS - 92.69%	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Advertising - 0.08%				Automobile Parts & Equipment (continued)
Harte-Hanks Inc	104,995	$	446	Horizon Global Corp ^(a)	3,362	$	29
Journal Media Group Inc	27,359		336	Meritor Inc ^(a)	25,553		278
Marchex Inc	23,792		102	Metaldyne Performance Group Inc	1,074		23
MDC Partners Inc	6,772		141	Miller Industries Inc/TN	19,089		433
Sizmek Inc ^(a)	5,083		30	Modine Manufacturing Co ^(a)	48,418		405
	$		1,055	Motorcar Parts of America Inc ^(a)	5,043		170
				Remy International Inc	16,297		481
Aerospace & Defense - 1.26%				Spartan Motors Inc	57,096		236
AAR Corp	62,514		1,418	Standard Motor Products Inc	8,019		354
Aerojet Rocketdyne Holdings Inc ^(a)	8,240		140
				Strattec Security Corp	2,606		156
Aerovironment Inc ^(a)	8,652		200
				Superior Industries International Inc	34,913		687
Arotech Corp ^(a)	9,039		13
				Supreme Industries Inc	16,313		130
Cubic Corp	18,366		823	Tenneco Inc ^(a)	187,125		10,589
Curtiss-Wright Corp	67,341		4,685	Titan International Inc	27,349		194
Ducommun Inc ^(a)	24,492		530
				Tower International Inc	1,811		50
Esterline Technologies Corp ^(a)	32,579		2,510
					$		17,960
Kaman Corp	13,037		507
KLX Inc ^(a)	33,362		1,304	Banks - 10.87%
Kratos Defense & Security Solutions Inc ^(a)	66,159		330	1st Constitution Bancorp ^(a)	882		11
LMI Aerospace Inc ^(a)	3,878		41	1st Source Corp	29,683		943
Moog Inc ^(a)	15,787		975	Access National Corp	1,674		35
National Presto Industries Inc	922		81	Alliance Bancorp Inc of Pennsylvania ^(c)	942		23
Orbital ATK Inc	7,183		615	American National Bankshares Inc	2,252		57
SIFCO Industries Inc	610		8	American River Bankshares ^(a)	5,499		57
Teledyne Technologies Inc ^(a)	14,418		1,287	Ameris Bancorp	28,179		888
Triumph Group Inc	25,275		1,177	AmeriServ Financial Inc	22,099		73
	$		16,644	Ames National Corp	1,885		47
				Arrow Financial Corp	5,121		142
Agriculture - 0.22%				ASB Bancorp Inc ^(a)	600		15
Alico Inc	707		30	Associated Banc-Corp	118,400		2,290
Alliance One International Inc ^(a)	6,752		119
				BancFirst Corp	1,416		87
Andersons Inc/The	15,794		559	Bancorp Inc/The ^(a)	10,984		79
MGP Ingredients Inc	5,023		87	BancorpSouth Inc	50,155		1,251
Tejon Ranch Co ^(a)	2,466		56
				Bank of Commerce Holdings	1,302		8
Universal Corp/VA	27,504		1,485	Bank of Florida Corp ^(a),(b),(c)	6,269		—
Vector Group Ltd	23,761		576	Banner Corp	3,812		188
	$		2,912	Bar Harbor Bankshares	1,678		59
Airlines - 0.36%				BBCN Bancorp Inc	24,050		404
Hawaiian Holdings Inc ^(a)	5,512		191	BCB Bancorp Inc	1,563		16
JetBlue Airways Corp ^(a),(b)	121,734		3,024	Blue Hills Bancorp Inc	5,451		77
Republic Airways Holdings Inc ^(a)	60,841		351	BNC Bancorp	7,925		178
SkyWest Inc	60,318		1,148	Boston Private Financial Holdings Inc	78,731		902
Virgin America Inc ^(a)	1,611		57	Bridge Bancorp Inc	2,637		76
	$		4,771	Bryn Mawr Bank Corp	8,169		238
				Camden National Corp	1,495		58
Apparel - 0.52%				Capital Bank Financial Corp	128,045		4,136
Cherokee Inc ^(a)	334		6	Capital City Bank Group Inc	14,180		219
Columbia Sportswear Co	7,572		415	Cardinal Financial Corp	18,871		429
Crocs Inc ^(a)	2,363		26	Carolina Bank Holdings Inc ^(a)	378		6
Deckers Outdoor Corp ^(a)	2,830		158	Cascade Bancorp ^(a)	14,452		81
Delta Apparel Inc ^(a)	6,921		114	Cass Information Systems Inc	955		50
Iconix Brand Group Inc ^(a)	54,084		829	Cathay General Bancorp	39,189		1,227
Lakeland Industries Inc ^(a)	6,346		78	CenterState Banks Inc	12,492		182
Perry Ellis International Inc ^(a)	22,372		480	Central Pacific Financial Corp	20,569		460
Rocky Brands Inc	8,535		109	Century Bancorp Inc/MA	1,037		46
Sequential Brands Group Inc ^(a)	1,225		15	Chemical Financial Corp	22,186		753
Skechers U.S.A. Inc ^(a)	47,865		1,493	Citizens & Northern Corp	5,813		115
Steven Madden Ltd ^(a)	61,600		2,147	Citizens First Corp	300		4
Superior Uniform Group Inc	8,321		142	City Holding Co	3,641		174
Unifi Inc ^(a)	26,534		812	CNB Financial Corp/PA	2,978		55
Weyco Group Inc	1,645		46	CoBiz Financial Inc	6,371		79
	$		6,870	Codorus Valley Bancorp Inc	1,188		24
				Colony Bankcorp Inc ^(a)	706		6
Automobile Manufacturers - 0.01%				Columbia Banking System Inc	7,807		260
Navistar International Corp ^(a)	6,533		81
Wabash National Corp ^(a)	530		6	Community Bank System Inc	36,268		1,478
				Community Trust Bancorp Inc	2,959		102
	$		87	Community West Bancshares	1,308		9
Automobile Parts & Equipment - 1.36%				CommunityOne Bancorp ^(a)	2,769		36
Accuride Corp ^(a)	2,103		6	ConnectOne Bancorp Inc	15,081		269
Cooper Tire & Rubber Co	35,544		1,486	CU Bancorp ^(a)	4,976		120
Cooper-Standard Holding Inc ^(a)	7,118		464	Customers Bancorp Inc ^(a)	13,227		364
Dana Holding Corp	56,344		946	CVB Financial Corp	14,381		251
Douglas Dynamics Inc	12,786		281	Eagle Bancorp Inc ^(a)	1,816		87
Federal-Mogul Holdings Corp ^(a)	72,562		562	Eastern Virginia Bankshares Inc	851		6
See accompanying notes				267


Schedule of Investments
SmallCap Value Fund II
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held	Value(000	's)

Banks (continued)				Banks (continued)
Enterprise Bancorp Inc/MA	1,631	$	38	Old Line Bancshares Inc	2,086	$ 36
Enterprise Financial Services Corp	7,193		204	Old National Bancorp/IN	75,315	1,054
Evans Bancorp Inc	387		10	Old Second Bancorp Inc ^(a)	18,139	121
Farmers Capital Bank Corp ^(a)	6,113		165	Opus Bank	1,936	72
FCB Financial Holdings Inc ^(a)	7,489		266	Pacific Continental Corp	6,854	98
Fidelity Southern Corp	9,313		195	Pacific Mercantile Bancorp ^(a)	1,055	7
Financial Institutions Inc	21,092		550	PacWest Bancorp	8,299	374
First Bancorp Inc/ME	2,270		48	Park National Corp	2,734	248
First BanCorp/Puerto Rico ^(a)	72,599		275	Park Sterling Corp	46,252	335
First Bancorp/Southern Pines NC	20,058		372	Patriot National Bancorp Inc ^(a)	212	3
First Bancshares Inc/The	1,620		26	Peapack Gladstone Financial Corp	3,035	69
First Busey Corp	20,053		418	Penns Woods Bancorp Inc	915	41
First Business Financial Services Inc	7,736		191	Peoples Bancorp Inc/OH	18,125	347
First Citizens BancShares Inc/NC	1,958		501	Peoples Bancorp of North Carolina Inc	1,797	35
First Commonwealth Financial Corp	142,847		1,313	Peoples Financial Services Corp	1,505	61
First Community Bancshares Inc/VA	21,848		420	People's Utah Bancorp	978	16
First Connecticut Bancorp Inc/Farmington CT	9,254		161	Pinnacle Financial Partners Inc	25,110	1,321
First Financial Bancorp	48,316		931	Preferred Bank/Los Angeles CA	4,968	164
First Financial Bankshares Inc	3,656		122	Premier Financial Bancorp Inc	8,519	125
First Financial Corp/IN	6,852		234	PrivateBancorp Inc	30,031	1,256
First Interstate BancSystem Inc	9,024		255	Prosperity Bancshares Inc	198,177	10,182
First Merchants Corp	330,869		8,679	QCR Holdings Inc	3,242	74
First Midwest Bancorp Inc/IL	172,902		3,081	Renasant Corp	24,890	863
First NBC Bank Holding Co ^(a)	2,892		108	Republic Bancorp Inc/KY	10,321	262
First of Long Island Corp/The	2,381		66	Republic First Bancorp Inc ^(a)	2,088	8
First United Corp ^(a)	1,489		13	S&T Bancorp Inc	26,099	832
FirstMerit Corp	757,076		14,226	Sandy Spring Bancorp Inc	36,710	1,010
FNB Corp/PA	141,450		1,905	SB Financial Group Inc	2,685	28
Franklin Financial Network Inc ^(a)	1,200		32	Select Bancorp Inc ^(a)	2,142	17
Fulton Financial Corp	217,510		2,919	ServisFirst Bancshares Inc	3,024	128
German American Bancorp Inc	4,115		129	Sierra Bancorp	23,063	374
Glacier Bancorp Inc	25,201		689	Simmons First National Corp	4,044	208
Great Southern Bancorp Inc	2,279		110	South State Corp	3,096	240
Great Western Bancorp Inc	9,794		277	Southcoast Financial Corp ^(a)	598	8
Guaranty Bancorp	6,423		106	Southern First Bancshares Inc ^(a)	357	8
Guaranty Federal Bancshares Inc	541		8	Southern National Bancorp of Virginia Inc	1,953	22
Hancock Holding Co	43,974		1,214	Southside Bancshares Inc	3,449	93
Hanmi Financial Corp	4,956		127	Southwest Bancorp Inc	22,312	377
Hawthorn Bancshares Inc	1,683		23	State Bank Financial Corp	4,862	104
Heartland Financial USA Inc	5,512		203	Stock Yards Bancorp Inc	2,770	104
Heritage Commerce Corp	15,330		163	Stonegate Bank	5,114	160
Heritage Financial Corp/WA	10,092		186	Suffolk Bancorp	2,305	69
Heritage Oaks Bancorp	4,603		41	Summit State Bank	804	11
Hilltop Holdings Inc ^(a)	56,676		1,188	Sun Bancorp Inc/NJ ^(a)	3,823	77
Home BancShares Inc/AR	10,978		471	Sussex Bancorp	1,215	16
Horizon Bancorp/IN	2,895		75	Synovus Financial Corp	12,685	401
IBERIABANK Corp	33,928		2,057	Talmer Bancorp Inc	6,907	116
Independent Bank Corp/MI	26,084		378	Texas Capital Bancshares Inc ^(a)	14,955	826
Independent Bank Corp/Rockland MA	5,851		273	TierOne Corp ^(a),(b),(c)	2,447	—
Independent Bank Group Inc	1,812		71	Tompkins Financial Corp	4,420	240
International Bancshares Corp	77,785		2,097	Towne Bank/Portsmouth VA	32,494	698
Kearny Financial Corp/MD	12,683		152	TriCo Bancshares	4,331	114
Lakeland Bancorp Inc	21,177		247	TriState Capital Holdings Inc ^(a)	13,025	163
Lakeland Financial Corp	80,945		3,637	Triumph Bancorp Inc ^(a)	3,076	51
LegacyTexas Financial Group Inc	6,450		185	TrustCo Bank Corp NY	17,268	108
Macatawa Bank Corp	7,247		37	Trustmark Corp	60,345	1,450
MainSource Financial Group Inc	41,155		891	UMB Financial Corp	5,333	262
MB Financial Inc	48,498		1,564	Umpqua Holdings Corp	134,110	2,240
MBT Financial Corp ^(a)	15,903		100	Union Bankshares Corp	438,400	10,981
Mercantile Bank Corp	11,101		245	United Bancshares Inc/OH	900	14
Merchants Bancshares Inc/VT	986		31	United Bankshares Inc/WV	9,398	372
Metro Bancorp Inc	18,205		564	United Community Banks Inc/GA	20,226	407
Mid Penn Bancorp Inc	119		2	United Security Bancshares/Fresno CA ^(a)	1,756	9
MidSouth Bancorp Inc	743		8	Unity Bancorp Inc	165	2
MidWestOne Financial Group Inc	2,515		78	Univest Corp of Pennsylvania	14,634	288
National Bankshares Inc	1,380		45	Valley National Bancorp	31,506	331
National Commerce Corp ^(a)	1,110		28	Walker & Dunlop Inc ^(a)	2,708	78
National Penn Bancshares Inc	162,304		1,954	Washington Trust Bancorp Inc	11,803	458
NBT Bancorp Inc	17,868		503	Webster Financial Corp	463,224	17,185
NewBridge Bancorp	8,242		93	WesBanco Inc	34,622	1,130
Northeast Bancorp	1,364		15	West Bancorporation Inc	3,058	60
Northrim BanCorp Inc	2,252		62	Westamerica Bancorporation	3,464	153
OFG Bancorp	44,324		408	Western Alliance Bancorp ^(a)	45,883	1,640


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Banks (continued)				Chemicals (continued)
Wilshire Bancorp Inc	67,066	$	717	Kraton Performance Polymers Inc ^(a)	40,992	$	837
Wintrust Financial Corp	92,102		4,651	Kronos Worldwide Inc	17,792		140
Yadkin Financial Corp	2,890		68	Landec Corp ^(a)	38,644		476
	$		143,960	Minerals Technologies Inc	1,556		92
				Oil-Dri Corp of America	1,003		31
Beverages - 0.08%				Olin Corp	90,514		1,736
Coca-Cola Bottling Co Consolidated	4,720		997	OMNOVA Solutions Inc ^(a)	3,684		26
Craft Brew Alliance Inc ^(a)	7,888		61
National Beverage Corp ^(a)	222		8	Quaker Chemical Corp	1,119		89
				Rayonier Advanced Materials Inc	7,509		69
	$		1,066	Sensient Technologies Corp	12,539		819
Biotechnology - 0.12%				Stepan Co	5,813		308
Acorda Therapeutics Inc ^(a)	3,309		119	Tronox Ltd	46,490		288
Agenus Inc ^(a)	2,596		12	Univar Inc ^(a)	2,793		49
Aratana Therapeutics Inc ^(a)	481		3	Valhi Inc	1,984		5
Assembly Biosciences Inc ^(a)	153		1		$		9,836
BioCryst Pharmaceuticals Inc ^(a)	2,440		22
Celldex Therapeutics Inc ^(a)	1,563		19	Coal - 0.05%
				Cloud Peak Energy Inc ^(a)	72,962		217
Cytokinetics Inc ^(a)	2,892		25
Dermira Inc ^(a)	1,728		47	Hallador Energy Co	3,458		21
				Peabody Energy Corp ^(a)	3,262		42
Emergent BioSolutions Inc ^(a)	9,771		314
Endocyte Inc ^(a)	6,479		33	SunCoke Energy Inc	64,827		321
				Westmoreland Coal Co ^(a)	3,333		24
Enzo Biochem Inc ^(a)	11,470		43
Geron Corp ^(a)	1,499		5		$		625
Harvard Bioscience Inc ^(a)	13,045		38	Commercial Services - 6.93%
Idera Pharmaceuticals Inc ^(a)	1,268		3	Aaron's Inc	74,698		1,843
Immunomedics Inc ^(a)	1,313		4	ABM Industries Inc	44,976		1,277
Inovio Pharmaceuticals Inc ^(a)	1,325		8	Alarm.com Holdings Inc ^(a)	613		8
Lexicon Pharmaceuticals Inc ^(a)	4,301		41	Albany Molecular Research Inc ^(a)	262,375		4,733
Loxo Oncology Inc ^(a)	1,343		31	American Public Education Inc ^(a)	3,083		67
Medicines Co/The ^(a)	10,354		355	AMN Healthcare Services Inc ^(a)	14,465		410
Merrimack Pharmaceuticals Inc ^(a)	1,062		10	Apollo Education Group Inc ^(a)	17,998		131
Ocata Therapeutics Inc ^(a)	934		4	ARC Document Solutions Inc ^(a)	24,236		151
Omeros Corp ^(a)	436		5	Arrowhead Research Corp ^(a)	4,631		24
PDL BioPharma Inc	28,532		131	Ascent Capital Group Inc ^(a)	8,176		178
Peregrine Pharmaceuticals Inc ^(a)	2,415		3	Avalon Holdings Corp ^(a)	3,917		7
Rigel Pharmaceuticals Inc ^(a)	3,392		9	Booz Allen Hamilton Holding Corp	496,225		14,619
RTI Surgical Inc ^(a)	33,246		140	Bridgepoint Education Inc ^(a)	15,592		121
Spectrum Pharmaceuticals Inc ^(a)	8,464		44	Brink's Co/The	2,445		76
Stemline Therapeutics Inc ^(a)	2,248		20	Cambium Learning Group Inc ^(a)	16,138		77
Theravance Biopharma Inc ^(a)	4,402		66	Cardtronics Inc ^(a)	4,150		143
Theravance Inc	1,895		17	Care.com Inc ^(a)	2,965		18
Tokai Pharmaceuticals Inc ^(a)	972		11	Carriage Services Inc	32,945		709
Verastem Inc ^(a)	4,812		9	Cartesian Inc ^(a)	650		2
Versartis Inc ^(a)	3,563		37	CBIZ Inc ^(a)	67,743		727
XOMA Corp ^(a)	2,672		3	CDI Corp	28,275		226
	$		1,632	Civeo Corp ^(a)	26,275		49
				CRA International Inc ^(a)	12,110		284
Building Materials - 0.83%				Cross Country Healthcare Inc ^(a)	29,237		395
Boise Cascade Co ^(a)	1,320		40
Continental Materials Corp ^(a)	657		8	Deluxe Corp	22,076		1,314
Gibraltar Industries Inc ^(a)	41,855		1,060	DeVry Education Group Inc	42,605		1,004
				Edgewater Technology Inc ^(a)	10,657		85
Griffon Corp	118,539		2,036	Electro Rent Corp	24,009		250
Lennox International Inc	36,950		4,907	Ennis Inc	33,363		668
Louisiana-Pacific Corp ^(a)	1,533		27
				Everi Holdings Inc ^(a)	36,406		170
LSI Industries Inc	26,231		282	Franklin Covey Co ^(a)	6,160		106
Nortek Inc ^(a)	907		56
				FRP Holdings Inc ^(a)	2,399		79
Quanex Building Products Corp	12,363		233	FTI Consulting Inc ^(a)	49,130		1,671
Simpson Manufacturing Co Inc	9,546		363	Great Lakes Dredge & Dock Corp ^(a)	59,659		239
Universal Forest Products Inc	26,730		1,941	Green Dot Corp ^(a)	11,434		212
	$		10,953	Hackett Group Inc/The	10,030		149
				HealthEquity Inc ^(a)	8,470		277
Chemicals - 0.74%
A Schulman Inc	25,325		909	Heidrick & Struggles International Inc	9,711		258
				Hudson Global Inc ^(a)	611		1
Aceto Corp	7,999		241
				Huron Consulting Group Inc ^(a)	8,740		422
American Vanguard Corp	18,988		254
Axiall Corp	46,852		949	ICF International Inc ^(a)	215,287		6,603
				Intersections Inc ^(a)	1,760		4
Cabot Corp	31,765		1,142
Calgon Carbon Corp	3,827		66	James River Group Holdings Ltd	2,223		65
Chemtura Corp ^(a)	18,794		600	K12 Inc ^(a)	26,002		252
Ferro Corp ^(a)	11,213		140	KAR Auction Services Inc	387,725		14,889
Hawkins Inc	1,595		66	Kelly Services Inc	40,803		645
Innophos Holdings Inc	4,358		185	Korn/Ferry International	67,291		2,448
Innospec Inc	4,958		274	Landauer Inc	3,690		146
Intrepid Potash Inc ^(a)	11,576		45	LendingTree Inc ^(a)	5,970		725


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Commercial Services (continued)				Consumer Products (continued)
Live Nation Entertainment Inc ^(a)	18,007	$	492	Acme United Corp	1,796	$	29
Matthews International Corp	14,264		823	Central Garden & Pet Co ^(a)	15,169		241
McGrath RentCorp	18,301		550	Central Garden and Pet Co - A Shares ^(a)	49,477		835
MoneyGram International Inc ^(a)	5,391		54	CSS Industries Inc	12,315		336
Monster Worldwide Inc ^(a)	89,215		560	Helen of Troy Ltd ^(a)	28,801		2,858
National Research Corp	493		8	Wausau Paper Corp	764		8
Navigant Consulting Inc ^(a)	69,058		1,188		$		5,699
Neff Corp ^(a)	1,751		10
Patriot National Inc ^(a)	340		4	Cosmetics & Personal Care - 0.03%
				CCA Industries Inc ^(a)	500		2
PDI Inc ^(a)	13,313		22
Pendrell Corp ^(a)	30,408		20	Inter Parfums Inc	1,861		51
				Revlon Inc ^(a)	11,982		376
Perceptron Inc ^(a)	7,593		60
PFSweb Inc ^(a)	442		7		$		429
QC Holdings Inc	400		1	Distribution & Wholesale - 0.87%
Quad/Graphics Inc	48,091		621	ADDvantage Technologies Group Inc ^(a)	3,841		9
RCM Technologies Inc	13,071		67	Beacon Roofing Supply Inc ^(a)	29,397		1,040
Rent-A-Center Inc/TX	63,451		1,166	Core-Mark Holding Co Inc	16,461		1,338
Resources Connection Inc	15,843		284	Essendant Inc	41,937		1,449
RPX Corp ^(a)	31,025		442	Fossil Group Inc ^(a)	101,525		5,524
ServiceMaster Global Holdings Inc ^(a)	319,250		11,381	Rentrak Corp ^(a)	140		8
ServiceSource International Inc ^(a)	4,738		20	ScanSource Inc ^(a)	34,906		1,205
SP Plus Corp ^(a)	487		12	Titan Machinery Inc ^(a)	3,470		43
Strayer Education Inc ^(a)	3,368		178	Veritiv Corp ^(a)	2,741		115
Team Inc ^(a)	36,275		1,270	WESCO International Inc ^(a)	17,082		836
TransUnion ^(a)	364,075		9,360
					$		11,567
Travelport Worldwide Ltd	4,144		56
TriNet Group Inc ^(a)	167,642		3,181	Diversified Financial Services - 1.01%
Universal Security Instruments Inc ^(a)	1,000		5	AeroCentury Corp ^(a)	423		4
Vectrus Inc ^(a)	433		11	Aircastle Ltd	47,078		1,066
Versar Inc ^(a)	3,300		11	Altisource Asset Management Corp ^(a)	81		2
Viad Corp	28,686		864	Arlington Asset Investment Corp	4,070		56
Volt Information Sciences Inc ^(a)	17,482		150	Asta Funding Inc ^(a)	11,856		102
Weight Watchers International Inc ^(a)	772		12	Atlanticus Holdings Corp ^(a)	16,062		49
	$		91,847	Calamos Asset Management Inc	32,862		308
				California First National Bancorp	2,983		40
Computers - 2.90%				Cowen Group Inc ^(a)	139,738		588
Agilysys Inc ^(a)	28,807		328	Credit Acceptance Corp ^(a)	1,280		242
Astro-Med Inc	9,156		121	Encore Capital Group Inc ^(a)	4,723		192
CACI International Inc ^(a)	166,200		16,128	Enova International Inc ^(a)	1,983		26
Ciber Inc ^(a)	159,402		569
				Federal Agricultural Mortgage Corp	11,178		328
Convergys Corp	210,827		5,412	First Marblehead Corp/The ^(a)	1,274		4
Datalink Corp ^(a)	25,215		184	FNFV Group ^(a)	26,573		299
Digimarc Corp ^(a)	163		4
				GAIN Capital Holdings Inc	5,225		39
Electronics For Imaging Inc ^(a)	7,237		336
				GAMCO Investors Inc	2,760		159
Engility Holdings Inc	271,890		8,752	Hannon Armstrong Sustainable Infrastructure	4,378		79
ExlService Holdings Inc ^(a)	327		15
				Capital Inc
Hutchinson Technology Inc ^(a)	8,712		15
				Houlihan Lokey Inc	1,763		39
Imation Corp ^(a)	55,798		113	Impac Mortgage Holdings Inc ^(a)	299		7
Insight Enterprises Inc ^(a)	73,263		1,861	INTL. FCStone Inc ^(a)	4,624		148
Key Tronic Corp ^(a)	16,991		142
				Investment Technology Group Inc	9,210		148
KEYW Holding Corp/The ^(a)	5,853		42	Janus Capital Group Inc	259,895		4,037
Lexmark International Inc	19,085		620	JMP Group LLC	6,387		39
Mentor Graphics Corp	19,209		522	KCG Holdings Inc ^(a)	27,125		338
Mercury Systems Inc ^(a)	23,555		404	Ladder Capital Corp	7,122		102
NCI Inc	319		5	Marlin Business Services Corp	12,133		215
NetScout Systems Inc ^(a)	8,749		314
				Moelis & Co	8,649		255
PAR Technology Corp ^(a)	9,256		49	Nationstar Mortgage Holdings Inc ^(a)	6,875		91
Planar Systems Inc ^(a)	24,121		150
				Nelnet Inc	24,666		883
Qualstar Corp ^(a)	4,617		5	NewStar Financial Inc ^(a)	56,773		599
Quantum Corp ^(a)	39,925		34	Ocwen Financial Corp ^(a)	14,602		102
Qumu Corp ^(a)	7,455		19
				Oppenheimer Holdings Inc	19,854		364
Radisys Corp ^(a)	5,005		13	PennyMac Financial Services Inc ^(a)	15,358		254
Silver Spring Networks Inc ^(a)	696		9	PHH Corp ^(a)	54,998		808
StarTek Inc ^(a)	11,737		42	Piper Jaffray Cos ^(a)	16,774		596
Stratasys Ltd ^(a)	6,900		176	RCS Capital Corp ^(a)	8,680		7
Super Micro Computer Inc ^(a)	4,310		122	Regional Management Corp ^(a)	8,903		145
Sykes Enterprises Inc ^(a)	61,343		1,778	Stifel Financial Corp ^(a)	9,187		408
TeleTech Holdings Inc	1,451		42	Virtus Investment Partners Inc	879		103
Unisys Corp ^(a)	2,476		33	Walter Investment Management Corp ^(a)	5,079		61
Vocera Communications Inc ^(a)	1,789		21	World Acceptance Corp ^(a)	633		24
	$		38,380		$		13,356

Consumer Products - 0.43%
ACCO Brands Corp ^(a)	172,471		1,392	Electric - 1.91%
				Abengoa Yield PLC	6,658		123


Schedule of Investments
SmallCap Value Fund II
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Electric (continued)				Electronics (continued)
ALLETE Inc	15,010	$	754	Stoneridge Inc ^(a)	6,135	$	78
Ameresco Inc ^(a)	3,589		23	Sypris Solutions Inc	37,183		28
Atlantic Power Corp	4,948		10	Tech Data Corp ^(a)	48,925		3,561
Avista Corp	27,982		947	TTM Technologies Inc ^(a)	100,858		736
Black Hills Corp	6,072		278	Vishay Intertechnology Inc	179,041		1,898
Cleco Corp	51,244		2,716	Vishay Precision Group Inc ^(a)	18,644		219
Dynegy Inc ^(a)	17,344		337	Watts Water Technologies Inc	7,733		421
El Paso Electric Co	6,478		251	Woodward Inc	2,748		125
Empire District Electric Co/The	29,661		669	ZAGG Inc ^(a)	15,863		135
EnerNOC Inc ^(a)	8,131		64		$		23,324
Genie Energy Ltd	10,258		116
IDACORP Inc	26,534		1,774	Energy - Alternate Sources - 0.18%
				Clean Energy Fuels Corp ^(a)	12,942		73
MGE Energy Inc	14,429		596
NorthWestern Corp	192,971		10,457	FutureFuel Corp	6,461		99
NRG Yield Inc - A Shares	6,312		87	Green Plains Inc	47,705		978
				Pacific Ethanol Inc ^(a)	6,358		38
NRG Yield Inc - C Shares	8,528		123
Ormat Technologies Inc	36,386		1,372	Pattern Energy Group Inc	7,556		177
				Renewable Energy Group Inc ^(a)	50,277		397
Otter Tail Corp	10,450		286	REX American Resources Corp ^(a)	9,743		536
PNM Resources Inc	32,270		907	TerraForm Global Inc ^(a)	5,953		45
Portland General Electric Co	20,662		766	Vivint Solar Inc ^(a)	1,365		16
Spark Energy Inc	458		8
Talen Energy Corp ^(a)	78,491		681		$		2,359
UIL Holdings Corp	27,816		1,419	Engineering & Construction - 0.59%
Unitil Corp	14,350		509	Aegion Corp ^(a)	45,965		887
	$		25,273	Argan Inc	5,766		213
				Comfort Systems USA Inc	3,453		110
Electrical Components & Equipment - 0.28%				Dycom Industries Inc ^(a)	6,396		487
Advanced Energy Industries Inc ^(a)	2,523		71
Encore Wire Corp	15,781		675	EMCOR Group Inc	46,867		2,263
				ENGlobal Corp ^(a)	18,947		20
EnerSys	4,399		268
General Cable Corp	24,562		378	Exponent Inc	174		9
Graham Corp	11,188		190	Granite Construction Inc	26,843		881
				Hill International Inc ^(a)	32,448		110
Insteel Industries Inc	3,322		71	Integrated Electrical Services Inc ^(a)	304		2
Littelfuse Inc	19,260		1,925	Layne Christensen Co ^(a)	12,149		77
Powell Industries Inc	869		29	MasTec Inc ^(a)	44,997		755
PowerSecure International Inc ^(a)	2,962		37
				Mistras Group Inc ^(a)	1,613		30
Ultralife Corp ^(a)	14,398		98
				MYR Group Inc ^(a)	16,957		381
	$		3,742	Orion Marine Group Inc ^(a)	33,709		131
Electronics - 1.76%				Primoris Services Corp	1,659		33
American Science & Engineering Inc	1,310		49	Sterling Construction Co Inc ^(a)	3,250		13
Applied Optoelectronics Inc ^(a)	763		16	TopBuild Corp ^(a)	5,211		147
AVX Corp	80,709		1,090	Tutor Perini Corp ^(a)	64,056		1,075
Ballantyne Strong Inc ^(a)	8,901		39	VSE Corp	4,298		247
Bel Fuse Inc	11,708		211		$		7,871
Benchmark Electronics Inc ^(a)	125,315		2,479
Brady Corp	7,475		170	Entertainment - 0.65%
Checkpoint Systems Inc	61,252		458	AMC Entertainment Holdings Inc	14,260		390
				Caesars Acquisition Co ^(a)	8,306		61
Coherent Inc ^(a)	12,290		666
				Carmike Cinemas Inc ^(a)	6,033		155
Control4 Corp ^(a)	3,850		25
CTS Corp	62,705		1,139	Dover Motorsports Inc	3,447		8
				DreamWorks Animation SKG Inc ^(a)	10,290		208
CyberOptics Corp ^(a)	7,092		50
				Eldorado Resorts Inc ^(a)	12,111		120
Electro Scientific Industries Inc	17,319		81	Eros International PLC ^(a)	6,089		68
ESCO Technologies Inc	24,121		895
FARO Technologies Inc ^(a)	1,806		61	International Speedway Corp	50,275		1,744
				Isle of Capri Casinos Inc ^(a)	1,176		23
Frequency Electronics Inc ^(a)	11,821		129
GSI Group Inc ^(a)	9,944		134	Marriott Vacations Worldwide Corp	58,264		3,752
II-VI Inc ^(a)	38,984		706	National CineMedia Inc	42,639		605
				Penn National Gaming Inc ^(a)	21,675		386
IntriCon Corp ^(a)	448		4
				RCI Hospitality Holdings Inc ^(a)	10,679		106
Itron Inc ^(a)	5,209		191
				Reading International Inc ^(a)	2,558		40
Kemet Corp ^(a)	28,632		80
Kimball Electronics Inc ^(a)	39,235		447	Speedway Motorsports Inc	50,396		931
Knowles Corp ^(a)	24,877		414		$		8,597
LGL Group Inc/The ^(a)	410		2
				Environmental Control - 0.23%
Multi-Fineline Electronix Inc ^(a)	21,681		402	Casella Waste Systems Inc ^(a)	6,707		41
Newport Corp ^(a)	27,434		415	CECO Environmental Corp	10,162		91
NVE Corp	1,765		105	Covanta Holding Corp	76,624		1,284
OSI Systems Inc ^(a)	3,051		263	Fenix Parts Inc ^(a)	1,181		9
Park Electrochemical Corp	3,758		61	Fuel Tech Inc ^(a)	4,445		9
Plexus Corp ^(a)	34,749		1,203	Heritage-Crystal Clean Inc ^(a)	2,282		27
Rofin-Sinar Technologies Inc ^(a)	31,240		905
				MSA Safety Inc	2,601		113
Rogers Corp ^(a)	8,512		396	Tetra Tech Inc	47,558		1,279
Sanmina Corp ^(a)	130,366		2,694	TRC Cos Inc ^(a)	17,210		178
Sparton Corp ^(a)	6,077		143
					$		3,031


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Food - 1.44%				Healthcare - Products (continued)
AMCON Distributing Co	191	$	16	Entellus Medical Inc ^(a)	334	$	6
Amplify Snack Brands Inc ^(a)	1,237		15	Exactech Inc ^(a)	4,426		75
B&G Foods Inc	11,727		425	Glaukos Corp ^(a)	363		7
Darling Ingredients Inc ^(a)	102,014		1,033	Greatbatch Inc ^(a)	21,759		1,163
Dean Foods Co	31,709		574	Haemonetics Corp ^(a)	3,664		124
Diamond Foods Inc ^(a)	187		7	Halyard Health Inc ^(a)	30,706		911
Fresh Del Monte Produce Inc	100,820		4,601	Hanger Inc ^(a)	44,601		644
Ingles Markets Inc	16,804		839	ICU Medical Inc ^(a)	1,695		187
John B Sanfilippo & Son Inc	17,973		1,163	Integra LifeSciences Holdings Corp ^(a)	174,208		10,378
Lancaster Colony Corp	12,250		1,393	Invacare Corp	16,791		290
Post Holdings Inc ^(a)	38,847		2,497	Lantheus Holdings Inc ^(a)	1,367		4
Sanderson Farms Inc	15,784		1,097	LeMaitre Vascular Inc	3,070		41
Seaboard Corp ^(a)	49		165	Luminex Corp ^(a)	7,000		127
Seneca Foods Corp - Class A ^(a)	19,838		579	Meridian Bioscience Inc	2,528		48
Seneca Foods Corp - Class B ^(a)	39		1	Merit Medical Systems Inc ^(a)	37,012		685
Smart & Final Stores Inc ^(a)	4,405		65	Misonix Inc ^(a)	10,945		122
Snyder's-Lance Inc	24,121		857	Natus Medical Inc ^(a)	2,319		106
SpartanNash Co	48,563		1,355	Navidea Biopharmaceuticals Inc ^(a)	5,385		11
SUPERVALU Inc ^(a)	49,267		324	NuVasive Inc ^(a)	8,120		383
Tootsie Roll Industries Inc	2,231		71	OraSure Technologies Inc ^(a)	13,283		69
TreeHouse Foods Inc ^(a)	17,461		1,496	Orthofix International NV ^(a)	11,720		399
United Natural Foods Inc ^(a)	532		27	Quidel Corp ^(a)	3,147		60
Village Super Market Inc	1,452		36	Rockwell Medical Inc ^(a)	1,342		16
Weis Markets Inc	9,292		382	SeaSpine Holdings Corp ^(a)	553		8
	$		19,018	SurModics Inc ^(a)	1,964		42
				Symmetry Surgical Inc ^(a)	12,918		110
Forest Products & Paper - 0.39%				Teleflex Inc	46,103		6,132
Clearwater Paper Corp ^(a)	3,090		156
				VWR Corp ^(a)	576,025		15,846
Domtar Corp	39,548		1,631	Wright Medical Group NV ^(a)	5,814		112
Mercer International Inc	51,746		559		$		52,389
Neenah Paper Inc	12,437		838
Orchids Paper Products Co	1,314		38	Healthcare - Services - 3.37%
PH Glatfelter Co	59,360		1,152	Addus HomeCare Corp ^(a)	13,112		328
Resolute Forest Products Inc ^(a)	70,441		526	Alliance HealthCare Services Inc ^(a)	3,090		27
Schweitzer-Mauduit International Inc	6,361		247	Almost Family Inc ^(a)	7,310		303
	$		5,147	Amedisys Inc ^(a)	19,494		771
				American Shared Hospital Services ^(a)	2,738		5
Gas - 2.06%				Amsurg Corp ^(a)	104,839		7,348
Chesapeake Utilities Corp	4,209		220	Civitas Solutions Inc ^(a)	225,250		5,796
Laclede Group Inc/The	180,214		10,555	Ensign Group Inc/The	4,333		182
New Jersey Resources Corp	44,424		1,408	Five Star Quality Care Inc ^(a)	51,012		167
Northwest Natural Gas Co	3,704		177	Genesis Healthcare Inc ^(a)	5,522		27
ONE Gas Inc	17,096		835	Health Net Inc/CA ^(a)	11,667		750
Piedmont Natural Gas Co Inc	10,662		611	HealthSouth Corp	16,500		575
South Jersey Industries Inc	20,801		552	Healthways Inc ^(a)	59,784		704
Southwest Gas Corp	20,189		1,240	IPC Healthcare Inc ^(a)	1,522		119
Vectren Corp	216,850		9,860	Kindred Healthcare Inc	81,994		1,098
WGL Holdings Inc	29,328		1,825	LHC Group Inc ^(a)	22,097		996
	$		27,283	LifePoint Health Inc ^(a)	111,545		7,683
				Magellan Health Inc ^(a)	51,031		2,725
Hand & Machine Tools - 0.62%
Franklin Electric Co Inc	222,142		7,321	Medcath Corp ^(a),(b),(c)	31,637		—
				Natera Inc ^(a)	178		1
Hardinge Inc	13,003		123
LS Starrett Co/The	5,475		65	National HealthCare Corp	2,393		157
Milacron Holdings Corp ^(a)	1,558		27	Select Medical Holdings Corp	65,802		743
P&F Industries Inc ^(a)	1,773		18	SunLink Health Systems Inc ^(a)	4,000		7
				Surgery Partners Inc ^(a)	341,625		5,746
Regal Beloit Corp	11,312		722
				Surgical Care Affiliates Inc ^(a)	231,842		6,865
	$		8,276
				Triple-S Management Corp ^(a)	41,804		860
Healthcare - Products - 3.95%				Universal American Corp/NY	87,895		656
Affymetrix Inc ^(a)	22,475		206
					$		44,639
Alere Inc ^(a)	247,858		11,431
Allied Healthcare Products Inc ^(a)	1,532		2	Holding Companies - Diversified - 0.04%
Analogic Corp	1,536		135	HRG Group Inc ^(a)	5,865		79
AngioDynamics Inc ^(a)	48,638		612	National Bank Holdings Corp	11,174		246
AtriCure Inc ^(a)	1,381		26	Resource America Inc	19,111		147
BioTelemetry Inc ^(a)	2,988		39		$		472
Cardiovascular Systems Inc ^(a)	508		7
Cerus Corp ^(a)	2,748		13	Home Builders - 1.23%
				AMREP Corp ^(a)	1,173		5
CONMED Corp	32,999		1,338	AV Homes Inc ^(a)	5,536		73
CryoLife Inc	14,972		158	Beazer Homes USA Inc ^(a)	5,802		83
Cutera Inc ^(a)	13,305		181
Cynosure Inc ^(a)	1,060		40	CalAtlantic Group Inc	233,238		8,884
				Cavco Industries Inc ^(a)	259		25
Digirad Corp	15,358		91	Century Communities Inc ^(a)	6,492		124
EndoChoice Holdings Inc ^(a)	418		4


Schedule of Investments
SmallCap Value Fund II
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Home Builders (continued)				Insurance (continued)
Green Brick Partners Inc ^(a)	14,126	$	149	MBIA Inc ^(a)	216,186	$	1,624
KB Home	15,507		203	MGIC Investment Corp ^(a)	116,081		1,092
LGI Homes Inc ^(a)	1,963		55	National General Holdings Corp	9,800		193
M/I Homes Inc ^(a)	44,817		1,028	National Interstate Corp	1,255		36
MDC Holdings Inc	52,739		1,371	National Security Group Inc/The	369		5
Meritage Homes Corp ^(a)	42,956		1,515	National Western Life Group Inc	5,644		1,457
New Home Co Inc/The ^(a)	1,386		20	Navigators Group Inc/The ^(a)	23,660		2,019
Orleans Homebuilders Inc ^(a),(b),(c)	7,702		—	NMI Holdings Inc ^(a)	9,649		73
Taylor Morrison Home Corp ^(a)	38,049		702	OneBeacon Insurance Group Ltd	4,288		62
TRI Pointe Group Inc ^(a)	109,878		1,426	Phoenix Cos Inc/The ^(a)	4,109		141
WCI Communities Inc ^(a)	10,520		252	Primerica Inc	14,876		708
William Lyon Homes ^(a)	20,213		431	ProAssurance Corp	9,904		525
Winnebago Industries Inc	634		13	Radian Group Inc	89,209		1,291
	$		16,359	RenaissanceRe Holdings Ltd	134,876		14,786
				RLI Corp	12,139		738
Home Furnishings - 0.23%				Safety Insurance Group Inc	6,485		376
Bassett Furniture Industries Inc	12,605		403	Security National Financial Corp ^(a)	895		5
Daktronics Inc	5,541		54	Selective Insurance Group Inc	92,040		3,359
DTS Inc/CA ^(a)	502		15
Emerson Radio Corp ^(a)	4,358		5	StanCorp Financial Group Inc	39,952		4,583
				State Auto Financial Corp	42,212		1,006
Ethan Allen Interiors Inc	6,237		170	State National Cos Inc	5,682		51
Flexsteel Industries Inc	8,784		382	Stewart Information Services Corp	14,703		591
Hooker Furniture Corp	14,812		367	Symetra Financial Corp	137,626		4,366
iRobot Corp ^(a)	3,290		99
				Third Point Reinsurance Ltd ^(a)	10,649		146
La-Z-Boy Inc	33,627		960	Unico American Corp ^(a)	5,796		56
Skullcandy Inc ^(a)	11,064		62
Stanley Furniture Co Inc ^(a)	8,033		23	United Fire Group Inc	43,119		1,604
Universal Electronics Inc ^(a)	10,175		484	United Insurance Holdings Corp	3,315		55
VOXX International Corp ^(a)	12,053		62	Universal Insurance Holdings Inc	19,212		606
					$		121,003
	$		3,086
				Internet - 0.59%
Housewares - 0.06%				1-800-Flowers.com Inc ^(a)	438		4
Libbey Inc	6,964		235	8x8 Inc ^(a)	8,296		89
Lifetime Brands Inc	15,351		236	Bankrate Inc ^(a)	36,174		430
NACCO Industries Inc	6,126		274	Bazaarvoice Inc ^(a)	5,895		26
	$		745	Blucora Inc ^(a)	60,785		595
				Boingo Wireless Inc ^(a)	2,869		22
Insurance - 9.13%
Ambac Financial Group Inc ^(a)	7,373		119	Chegg Inc ^(a)	8,333		58
American Equity Investment Life Holding Co	360,069		9,247	DHI Group Inc ^(a)	5,512		50
American Independence Corp ^(a)	1,020		10	ePlus Inc ^(a)	6,164		520
				FTD Cos Inc ^(a)	18,532		525
American National Insurance Co	1,810		187
AMERISAFE Inc	2,574		141	Intralinks Holdings Inc ^(a)	3,566		31
				Lands' End Inc ^(a)	2,422		60
Argo Group International Holdings Ltd	42,964		2,686
				Limelight Networks Inc ^(a)	11,742		24
Aspen Insurance Holdings Ltd	261,490		12,711
Atlantic American Corp	7,236		32	Liquidity Services Inc ^(a)	4,446		36
Atlas Financial Holdings Inc ^(a)	1,457		28	ModusLink Global Solutions Inc ^(a)	18,859		55
Baldwin & Lyons Inc	14,088		327	New Media Investment Group Inc	8,775		141
Citizens Inc/TX ^(a)	8,881		75	PC-Tel Inc	47		—
				Perficient Inc ^(a)	14,076		235
CNO Financial Group Inc	777,810		14,941
				QuinStreet Inc ^(a)	6,872		38
Crawford & Co	3,944		24
Donegal Group Inc	18,804		266	Rapid7 Inc ^(a)	381		8
				RealNetworks Inc ^(a)	18,858		73
EMC Insurance Group Inc	21,247		531
Employers Holdings Inc	23,407		620	Reis Inc	11,117		270
Endurance Specialty Holdings Ltd	62,517		3,947	RetailMeNot Inc ^(a)	6,624		58
Enstar Group Ltd ^(a)	1,232		194	RingCentral Inc ^(a)	199,500		3,691
				Rocket Fuel Inc ^(a)	4,651		21
FBL Financial Group Inc	56,003		3,522
Federated National Holding Co	7,349		226	Safeguard Scientifics Inc ^(a)	6,982		124
				Shutterfly Inc ^(a)	1,842		77
Fidelity & Guaranty Life	2,267		61
First Acceptance Corp ^(a)	19,254		55	Support.com Inc ^(a)	7,801		9
First American Financial Corp	404,507		15,425	TechTarget Inc ^(a)	2,849		27
Global Indemnity PLC ^(a)	18,355		521	TeleCommunication Systems Inc ^(a)	52,063		213
Greenlight Capital Re Ltd ^(a)	33,876		743	TheStreet Inc	28,307		41
Hallmark Financial Services Inc ^(a)	27,282		354	United Online Inc ^(a)	25,217		295
Hanover Insurance Group Inc/The	43,980		3,705		$		7,846
HCI Group Inc	19,724		860	Investment Companies - 0.48%
Heritage Insurance Holdings Inc ^(a)	8,888		196
				6D Global Technologies Inc ^(a),(c)	2,679		8
Horace Mann Educators Corp	70,459		2,413	Acacia Research Corp	9,177		61
Independence Holding Co	16,130		219	Real Industry Inc ^(a)	1,756		17
Infinity Property & Casualty Corp	8,766		706	TCP Capital Corp	429,525		6,249
Investors Title Co	1,402		105		$		6,335
Kansas City Life Insurance Co	1,764		86
Kemper Corp	76,586		2,736	Iron & Steel - 0.95%
Maiden Holdings Ltd	91,946		1,430	AK Steel Holding Corp ^(a)	31,372		91


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Iron & Steel (continued)				Media (continued)
Carpenter Technology Corp	34,488	$	1,148	Gannett Co Inc	3,260	$	52
Cliffs Natural Resources Inc	26,824		74	Gray Television Inc ^(a)	74,608		1,185
Commercial Metals Co	156,031		2,242	Hemisphere Media Group Inc ^(a)	1,970		27
Friedman Industries Inc	7,610		46	Here Media Inc ^(a),(b),(c)	3,700		—
Reliance Steel & Aluminum Co	141,650		8,493	Here Media Inc - Special Shares ^(a),(c)	3,700		—
Ryerson Holding Corp ^(a)	1,966		12	Houghton Mifflin Harcourt Co ^(a)	25,044		490
Schnitzer Steel Industries Inc	6,580		111	Martha Stewart Living Omnimedia Inc ^(a)	1,907		11
Shiloh Industries Inc ^(a)	13,842		104	McClatchy Co/The ^(a)	62,201		86
Universal Stainless & Alloy Products Inc ^(a)	7,119		62	Media General Inc ^(a)	46,471		691
Worthington Industries Inc	5,013		154	Meredith Corp	19,918		936
	$		12,537	New York Times Co/The	89,770		1,193
				Radio One Inc ^(a)	27,800		60
Leisure Products & Services - 0.19%				Saga Communications Inc	5,232		225
Brunswick Corp/DE	3,530		190	Salem Media Group Inc	14,406		91
Callaway Golf Co	66,818		665	Scholastic Corp	34,948		1,428
Escalade Inc	3,231		48	Spanish Broadcasting System Inc ^(a)	1,921		11
Intrawest Resorts Holdings Inc ^(a)	6,810		61
				Time Inc	103,257		1,918
Johnson Outdoors Inc	9,365		200	Townsquare Media Inc ^(a)	1,548		17
Liberty TripAdvisor Holdings Inc ^(a)	36,725		1,145
MCBC Holdings Inc ^(a)	718		10	Tribune Publishing Co	2,263		21
Nautilus Inc ^(a)	2,840		48		$		10,435
Performance Sports Group Ltd ^(a)	7,469		86	Metal Fabrication & Hardware - 0.15%
Planet Fitness Inc ^(a)	1,325		22	AM Castle & Co ^(a)	14,524		35
	$		2,475	Ampco-Pittsburgh Corp	8,217		95
				Chicago Rivet & Machine Co	1,070		28
Lodging - 0.22%				CIRCOR International Inc	7,664		352
Belmond Ltd ^(a)	131,563		1,413
Boyd Gaming Corp ^(a)	24,613		492	Dynamic Materials Corp	528		4
Caesars Entertainment Corp ^(a)	9,836		79	Eastern Co/The	2,538		42
Full House Resorts Inc ^(a)	458		1	Global Brass & Copper Holdings Inc	751		17
				Haynes International Inc	2,422		95
Interval Leisure Group Inc	6,010		106	Lawson Products Inc/DE ^(a)	7,691		200
Marcus Corp/The	27,396		567	LB Foster Co	9,307		137
MonarchCasino&Resort Inc ^(a)	3,004		66
Red Lion Hotels Corp ^(a)	31,701		259	Mueller Industries Inc	4,653		147
				Mueller Water Products Inc - Class A	37,922		334
	$		2,983	NN Inc	11,505		159
				Northwest Pipe Co ^(a)	6,346		84
Machinery - Construction & Mining - 0.15%
Astec Industries Inc	18,971		617	Olympic Steel Inc	12,270		117
Babcock & Wilcox Enterprises Inc ^(a)	1,225		21	TimkenSteel Corp	12,630		134
Hyster-Yale Materials Handling Inc	5,106		298		$		1,980
Oshkosh Corp	4,578		188	Mining - 0.33%
Terex Corp	42,081		844	Alcoa Inc	35,907		321
	$		1,968	A-Mark Precious Metals Inc	2,012		29
				Century Aluminum Co ^(a)	145,553		527
Machinery - Diversified - 0.27%
Alamo Group Inc	13,277		623	Energy Fuels Inc/Canada ^(a)	4,491		12
Albany International Corp	3,319		125	Globe Specialty Metals Inc	24,220		306
Altra Industrial Motion Corp	707		19	Hecla Mining Co	251,920		521
Applied Industrial Technologies Inc	5,305		219	Horsehead Holding Corp ^(a)	19,549		56
Briggs & Stratton Corp	51,060		908	Kaiser Aluminum Corp	18,776		1,526
Chart Industries Inc ^(a)	15,905		274	Materion Corp	19,781		597
Columbus McKinnon Corp/NY	4,169		78	Noranda Aluminum Holding Corp ^(a)	2,319		4
DXP Enterprises Inc ^(a)	1,652		50	Ring Energy Inc ^(a)	4,635		48
Gencor Industries Inc ^(a)	3,553		34	Stillwater Mining Co ^(a)	48,124		450
Gerber Scientific Inc ^(a),(b),(c)	56,637		—	United States Lime & Minerals Inc	401		19
Global Power Equipment Group Inc	4,572		20		$		4,416
Gorman-Rupp Co/The	2,657		76	Miscellaneous Manufacturers - 1.80%
Hurco Cos Inc	11,782		316	Actuant Corp	41,325		942
Kadant Inc	13,361		550	American Railcar Industries Inc	8,325		480
Key Technology Inc ^(a)	1,200		13
				AO Smith Corp	3,260		250
Lindsay Corp	771		52	Barnes Group Inc	40,981		1,540
SPX FLOW Inc ^(a)	1,454		49
				Chase Corp	219		10
Tennant Co	2,758		160	CLARCOR Inc	385		19
Twin Disc Inc	4,288		50	Core Molding Technologies Inc ^(a)	9,787		196
	$		3,616	EnPro Industries Inc	1,235		61
				Fabrinet ^(a)	33,833		733
Media - 0.79%
A H Belo Corp	19,330		105	Federal Signal Corp	41,546		626
Beasley Broadcast Group Inc	5,597		24	FreightCar America Inc	1,436		26
Crown Media Holdings Inc ^(a)	1,937		11	Handy & Harman Ltd ^(a)	583		14
Cumulus Media Inc ^(a)	202,652		93	Hillenbrand Inc	331,175		9,826
Daily Journal Corp ^(a)	204		42	LSB Industries Inc ^(a)	11,076		174
Entercom Communications Corp ^(a)	26,236		290	Lydall Inc ^(a)	8,300		284
				MFRI Inc ^(a)	8,842		50
Entravision Communications Corp	1,375		12
EW Scripps Co/The	64,189		1,416	Myers Industries Inc	6,430		100


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)


Miscellaneous Manufacturers (continued)				Oil & Gas (continued)

NL Industries Inc ^(a)	8,749	$	31	WPX Energy Inc ^(a)	69,624	$	478

Park-Ohio Holdings Corp	713		25		$		21,326

Raven Industries Inc	4,468		81

Servotronics Inc	788		6	Oil & Gas Services - 2.09%
				Basic Energy Services Inc ^(a)	50,803		189
SPX Corp	1,454		18

Standex International Corp	88,132		7,907	Bristow Group Inc	42,090		1,461
				C&J Energy Services Ltd ^(a)	24,169		120
Synalloy Corp	3,022		26

Tredegar Corp	14,349		205	CARBO Ceramics Inc	3,458		61
				Dawson Geophysical Co ^(a)	11,345		37
TriMas Corp ^(a)	9,741		195
				Exterran Holdings Inc	85,383		1,856

	$		23,825	Flotek Industries Inc ^(a)	9,946		180

Office Furnishings - 0.10%				Forum Energy Technologies Inc ^(a)	412,070		5,460

HNI Corp	2,980		128	Geospace Technologies Corp ^(a)	2,397		37

Kewaunee Scientific Corp	3,601		60	Gulf Island Fabrication Inc	11,118		112

Kimball International Inc	29,631		323	Gulfmark Offshore Inc	31,238		195

Knoll Inc	18,260		425	Helix Energy Solutions Group Inc ^(a)	144,196		833

Steelcase Inc	20,780		403	Independence Contract Drilling Inc ^(a)	3,494		25

Virco Manufacturing Corp ^(a)	4,847		18	ION Geophysical Corp ^(a)	117,058		43

	$		1,357	KeyEnergyServices Inc ^(a)	56,117		29

				Matrix Service Co ^(a)	6,298		143

Oil & Gas - 1.61%				McDermott International Inc ^(a)	123,752		571
Abraxas Petroleum Corp ^(a)	39,737		64
				Mitcham Industries Inc ^(a)	12,775		57

Adams Resources & Energy Inc	1,509		67	MRC Global Inc ^(a)	87,856		1,045

Alon USA Energy Inc	101,439		1,699	Natural Gas Services Group Inc ^(a)	14,943		337
Approach Resources Inc ^(a)	9,305		22
				Newpark Resources Inc ^(a)	366,474		2,074

Atwood Oceanics Inc	41,314		684	Oil States International Inc ^(a)	15,404		463
Barnwell Industries Inc ^(a)	2,755		6
				PHI Inc ^(a)	15,484		295
Bill Barrett Corp ^(a)	9,863		48
				Pioneer Energy Services Corp ^(a)	76,031		175
Bonanza Creek Energy Inc ^(a)	17,394		99
				SEACOR Holdings Inc ^(a)	22,129		1,293
Callon Petroleum Co ^(a)	70,587		612
				Steel Excel Inc ^(a)	15,136		255
Carrizo Oil & Gas Inc ^(a)	34,477		1,297

Clayton Williams Energy Inc ^(a)	3,589		214	Superior Energy Services Inc	275,912		3,907
				Tesco Corp	46,623		373

Comstock Resources Inc	62,256		143	TETRA Technologies Inc ^(a)	94,499		637
(a)
Contango Oil & Gas Co	22,736		174	Thermon Group Holdings Inc ^(a)	270,376		5,437

CVR Energy Inc	628		28	Willbros Group Inc ^(a)	16,248		33
Delek US Holdings Inc	81,811		2,225

Earthstone Energy Inc ^(a)	513		7		$		27,733

Eclipse Resources Corp ^(a)	8,670		19	Packaging & Containers - 3.20%

Energy XXI Ltd	40,770		71	Berry Plastics Group Inc ^(a)	9,134		306

Fairmount Santrol Holdings Inc ^(a)	2,569		7	Graphic Packaging Holding Co	963,051		13,637

Gastar Exploration Inc ^(a)	14,698		23	Greif Inc - Class A	20,153		661

Halcon Resources Corp ^(a)	67,469		47	Greif Inc - Class B	557		22

Jones Energy Inc ^(a)	15,687		81	KapStone Paper and Packaging Corp	419,875		9,132

Magnum Hunter Resources Corp - Warrants	11,862		—	Multi Packaging Solutions International Ltd ^(a)	355,475		5,812
(a),(b),(c)
				Silgan Holdings Inc	251,001		12,768

Matador Resources Co ^(a)	4,027		104		$		42,338

Noble Corp PLC	45,389		611

Noble Energy Inc	421		15	Pharmaceuticals - 0.81%
				ACADIA Pharmaceuticals Inc ^(a)	1,058		37
North Atlantic Drilling Ltd ^(a)	17,435		14
				Adamas Pharmaceuticals Inc ^(a)	1,793		26
Northern Oil and Gas Inc ^(a)	23,452		118
				Aimmune Therapeutics Inc ^(a)	199		3
Oasis Petroleum Inc ^(a)	18,860		219
				Akebia Therapeutics Inc ^(a)	4,207		38
Pacific Drilling SA ^(a)	49,242		79
				Amphastar Pharmaceuticals Inc ^(a)	1,848		22

Panhandle Oil and Gas Inc	4,671		86	Anika Therapeutics Inc ^(a)	646		25
Par Pacific Holdings Inc ^(a)	547		12
				Array BioPharma Inc ^(a)	4,478		23
Parker Drilling Co ^(a)	143,770		411
				Axovant Sciences Ltd ^(a)	252		3
Parsley Energy Inc ^(a)	8,069		143
				BioScrip Inc ^(a)	11,819		23

Patterson-UTI Energy Inc	82,082		1,222	Calithera Biosciences Inc ^(a)	1,911		16

PBF Energy Inc	50,308		1,711	Chiasma Inc ^(a)	131		3
PDC Energy Inc ^(a)	56,302		3,397
				Global Blood Therapeutics Inc ^(a)	124		6
Penn Virginia Corp ^(a)	15,149		9
				Ignyta Inc ^(a)	1,507		15
Rex Energy Corp ^(a)	8,984		20
				Impax Laboratories Inc ^(a)	1,502		52
Rice Energy Inc ^(a)	63,172		964
				NantKwest Inc ^(a)	119		1

Rowan Cos PLC	60,979		1,200	Natural Alternatives International Inc ^(a)	3,359		20
RSP Permian Inc ^(a)	54,924		1,506

Seventy Seven Energy Inc ^(a)	19,706		23	Nature's Sunshine Products Inc	2,085		25
				Neos Therapeutics Inc ^(a)	98		1

SM Energy Co	13,211		441	Nutraceutical International Corp ^(a)	14,022		344
Synergy Resources Corp ^(a)	23,578		264
				Omega Protein Corp ^(a)	53,060		966
TransAtlantic Petroleum Ltd ^(a)	5,763		15

Triangle Petroleum Corp ^(a)	60,021		72	Osiris Therapeutics Inc	286		5

Ultra Petroleum Corp ^(a)	10,580		58	Owens & Minor Inc	9,201		330
				PharMerica Corp ^(a)	48,560		1,387
Unit Corp ^(a)	32,715		412
				PRA Health Sciences Inc ^(a)	183,775		6,439
VAALCO Energy Inc ^(a)	13,619		25
				Prestige Brands Holdings Inc ^(a)	17,288		847

W&T Offshore Inc	18,480		60	Seres Therapeutics Inc ^(a)	152		5


Schedule of Investments
SmallCap Value Fund II
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Pharmaceuticals (continued)				REITS (continued)
Sucampo Pharmaceuticals Inc ^(a)	871	$	17	Independence Realty Trust Inc	5,741	$	45
Synutra International Inc ^(a)	978		6	InfraREIT Inc	4,133		99
Threshold Pharmaceuticals Inc ^(a)	616		2	Inland Real Estate Corp	45,366		401
Vanda Pharmaceuticals Inc ^(a)	1,449		16	Invesco Mortgage Capital Inc	16,683		201
	$		10,703	Investors Real Estate Trust	16,639		135
				iStar Inc ^(a)	11,598		150
Private Equity - 0.00%				Kite Realty Group Trust	11,325		299
Fifth Street Asset Management Inc	1,860		11	LaSalle Hotel Properties	26,750		787
				Lexington Realty Trust	27,839		246
Real Estate - 0.26%				LTC Properties Inc	18,234		781
Alexander & Baldwin Inc	37,667		1,422	Mack-Cali Realty Corp	18,983		413
Altisource Residential Corp	19,650		283	Medical Properties Trust Inc	43,793		495
BBX Capital Corp ^(a)	2,467		46	Monmouth Real Estate Investment Corp	7,966		83
California Coastal Communities Inc ^(a),(b),(c)	9,672		—	Monogram Residential Trust Inc	22,562		222
Consolidated-Tomoka Land Co	615		31	National Health Investors Inc	5,385		316
Griffin Industrial Realty Inc	872		22	New Residential Investment Corp	88,753		1,076
Kennedy-Wilson Holdings Inc	28,871		708	New Senior Investment Group Inc	11,747		118
RE/MAX Holdings Inc	11,538		435	New York Mortgage Trust Inc	14,722		84
St Joe Co/The ^(a)	9,108		180	New York REIT Inc	22,012		251
Stratus Properties Inc ^(a)	2,638		45	NexPoint Residential Trust Inc	3,581		47
Xenia Hotels & Resorts Inc	15,129		262	One Liberty Properties Inc	2,555		60
	$		3,434	Parkway Properties Inc/Md	11,467		192
				Pebblebrook Hotel Trust	15,645		534
REITS - 3.64%				Pennsylvania Real Estate Investment Trust	9,355		210
Acadia Realty Trust	30,323		997	PennyMac Mortgage Investment Trust	23,422		343
AG Mortgage Investment Trust Inc	33,924		516	Physicians Realty Trust	9,534		152
Agree Realty Corp	15,986		517	Potlatch Corp	3,870		121
Alexander's Inc	19		8	Preferred Apartment Communities Inc	4,188		46
American Assets Trust Inc	2,728		115	PS Business Parks Inc	4,423		380
American Capital Mortgage Investment Corp	11,220		163	QTS Realty Trust Inc	187		8
Anworth Mortgage Asset Corp	117,682		562	Ramco-Gershenson Properties Trust	17,642		296
Apollo Commercial Real Estate Finance Inc	64,818		1,077	Redwood Trust Inc	11,421		152
Apollo Residential Mortgage Inc	108,617		1,398	Resource Capital Corp	12,419		159
Ares Commercial Real Estate Corp	33,539		414	Retail Opportunity Investments Corp	20,982		380
Armada Hoffler Properties Inc	40,052		430	Rexford Industrial Realty Inc	7,525		114
ARMOUR Residential REIT Inc	5,981		123	RLJ Lodging Trust	36,626		919
Ashford Hospitality Prime Inc	40,675		598	Rouse Properties Inc	4,921		87
Ashford Hospitality Trust Inc	16,548		114	Sabra Health Care REIT Inc	11,497		261
Bluerock Residential Growth REIT Inc	3,538		42	Saul Centers Inc	380		21
Capstead Mortgage Corp	82,432		796	Select Income REIT	41,362		836
CatchMark Timber Trust Inc ^(b)	7,546		83
				Silver Bay Realty Trust Corp	14,709		238
Cedar Realty Trust Inc	16,146		113	Sovran Self Storage Inc	2,694		269
Chambers Street Properties	98,889		700	STAG Industrial Inc	8,824		181
Chatham Lodging Trust	9,549		219	Starwood Waypoint Residential Trust	5,182		128
Chesapeake Lodging Trust	28,587		787	STORE Capital Corp	9,660		219
Colony Capital Inc	57,833		1,176	Strategic Hotels & Resorts Inc ^(a)	37,263		525
CorEnergy Infrastructure Trust Inc	11,039		56	Summit Hotel Properties Inc	20,360		267
Cousins Properties Inc	29,348		295	Sun Communities Inc	7,819		524
CubeSmart	24,822		691	Sunstone Hotel Investors Inc	69,668		1,007
CyrusOne Inc	741		26	Terreno Realty Corp	5,840		131
CYS Investments Inc	29,895		230	UMH Properties Inc	4,547		45
DCT Industrial Trust Inc	22,950		852	United Development Funding IV	5,753		99
DiamondRock Hospitality Co	65,793		768	Universal Health Realty Income Trust	1,844		92
DuPont Fabros Technology Inc	20,580		660	Urstadt Biddle Properties Inc	9,415		189
Dynex Capital Inc	10,568		70	Washington Real Estate Investment Trust	18,870		510
EastGroup Properties Inc	7,759		436	Western Asset Mortgage Capital Corp	7,803		89
Education Realty Trust Inc	6,544		235	Whitestone REIT	9,407		116
EPR Properties	16,621		944		$		48,216
Equity One Inc	15,396		409
FelCor Lodging Trust Inc	145,070		1,168	Retail - 5.99%
First Industrial Realty Trust Inc	14,986		325	Abercrombie & Fitch Co	69,922		1,482
First Potomac Realty Trust	7,997		94	American Eagle Outfitters Inc	47,066		719
Franklin Street Properties Corp	21,803		227	America's Car-Mart Inc/TX ^(a)	1,278		44
GEO Group Inc/The	13,416		433	Ascena Retail Group Inc ^(a)	81,944		1,091
Getty Realty Corp	26,059		440	Barnes & Noble Education Inc ^(a)	60,263		889
Gladstone Commercial Corp	4,037		65	Barnes & Noble Inc	82,778		1,076
Government Properties Income Trust	9,537		155	Big 5 Sporting Goods Corp	16,658		153
Gramercy Property Trust Inc	7,860		178	Biglari Holdings Inc ^(a)	374		144
Great Ajax Corp	1,116		14	BJ's Restaurants Inc ^(a)	440		19
Hatteras Financial Corp	68,505		981	Bloomin' Brands Inc	181,800		3,085
Healthcare Realty Trust Inc	15,237		402	Bob Evans Farms Inc/DE	2,776		120
Hersha Hospitality Trust	366,052		8,789	Books-A-Million Inc ^(a)	13,331		42
Highwoods Properties Inc	40,689		1,768	Bravo Brio Restaurant Group Inc ^(a)	2,435		28
Hudson Pacific Properties Inc	14,285		408	Build-A-Bear Workshop Inc ^(a)	13,479		210


Schedule of Investments
SmallCap Value Fund II
October 31, 2015



COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Retail (continued)				Savings & Loans (continued)
Burlington Stores Inc ^(a)	2,023	$	97	Atlantic Coast Financial Corp ^(a)	210	$	1
Caleres Inc	18,067		552	Banc of California Inc	13,409		175
Carrols Restaurant Group Inc ^(a)	1,385		16	Bank Mutual Corp	42,946		311
Cash America International Inc	19,083		659	BankFinancial Corp	36,967		456
Cato Corp/The	8,740		330	Bear State Financial Inc ^(a)	395		4
Children's Place Inc/The	13,500		725	Beneficial Bancorp Inc ^(a)	43,963		610
Christopher & Banks Corp ^(a)	12,842		19	Berkshire Hills Bancorp Inc	57,496		1,644
Citi Trends Inc	10,795		286	Brookline Bancorp Inc	93,130		1,057
Conn's Inc ^(a)	4,036		77	BSB Bancorp Inc/MA ^(a)	1,673		37
Cracker Barrel Old Country Store Inc	4,739		651	Cape Bancorp Inc	5,980		77
Del Frisco's Restaurant Group Inc ^(a)	3,903		53	Capitol Federal Financial Inc	256,344		3,327
Denny's Corp ^(a)	96,490		1,057	Charter Financial Corp/MD	8,383		110
Destination Maternity Corp	1,406		10	Chicopee Bancorp Inc	1,061		18
Destination XL Group Inc ^(a)	5,520		32	Citizens Community Bancorp Inc/WI	2,250		20
DineEquity Inc	11,676		974	Clifton Bancorp Inc	24,500		357
DSW Inc	184,675		4,606	Dime Community Bancshares Inc	29,392		511
Express Inc ^(a)	3,508		68	Eagle Bancorp Montana Inc	111		1
Ezcorp Inc ^(a)	28,986		193	ESSA Bancorp Inc	9,408		125
Finish Line Inc/The	30,348		565	EverBank Financial Corp	74,620		1,288
First Cash Financial Services Inc ^(a)	202,568		7,728	First Defiance Financial Corp	12,222		468
Fogo De Chao Inc ^(a)	446		7	First Financial Northwest Inc	13,228		166
Fred's Inc	40,106		555	Flagstar Bancorp Inc ^(a)	22,618		503
Gaiam Inc ^(a)	502		3	Flushing Financial Corp	48,543		1,021
Genesco Inc ^(a)	15,746		986	Fox Chase Bancorp Inc	16,557		290
Group 1 Automotive Inc	108,344		9,421	HF Financial Corp	8,101		131
Guess? Inc	62,662		1,319	Hingham Institution for Savings	280		36
Haverty Furniture Cos Inc	34,442		806	HMN Financial Inc ^(a)	2,080		24
HSN Inc	184,275		11,397	Home Bancorp Inc	3,409		87
J Alexander's Holdings Inc ^(a)	2,714		26	HomeStreet Inc ^(a)	20,674		433
JC Penney Co Inc ^(a)	161,351		1,480	HomeTrust Bancshares Inc ^(a)	7,202		136
Kirkland's Inc	3,330		77	HopFed Bancorp Inc	3,929		46
Luby's Inc ^(a)	28,408		132	Investors Bancorp Inc	179,935		2,251
MarineMax Inc ^(a)	11,492		181	Lake Sunapee Bank Group	1,896		27
Men's Wearhouse Inc/The	280,437		11,212	Magyar Bancorp Inc ^(a)	400		4
Movado Group Inc	21,299		548	Meridian Bancorp Inc	62,343		876
New York & Co Inc ^(a)	8,783		23	Meta Financial Group Inc	4,607		199
Office Depot Inc ^(a)	70,292		535	MutualFirst Financial Inc	4,937		116
Ollie's Bargain Outlet Holdings Inc ^(a)	631		10	Northeast Community Bancorp Inc	2,697		20
Pacific Sunwear of California Inc ^(a)	51,451		14	Northfield Bancorp Inc	85,537		1,311
PC Connection Inc	35,596		828	Northwest Bancshares Inc	148,702		2,002
PCM Inc ^(a)	21,523		199	Ocean Shore Holding Co	2,736		47
Penske Automotive Group Inc	17,213		841	OceanFirst Financial Corp	2,690		50
Pep Boys-Manny Moe & Jack/The ^(a)	92,972		1,398	Oneida Financial Corp	800		17
Perfumania Holdings Inc ^(a)	3,407		13	Oritani Financial Corp	23,447		373
Regis Corp ^(a)	63,450		1,048	Pacific Premier Bancorp Inc ^(a)	11,328		242
Ruby Tuesday Inc ^(a)	108,175		566	Provident Financial Holdings Inc	10,567		181
Rush Enterprises Inc - Class A ^(a)	34,454		840	Provident Financial Services Inc	121,707		2,472
Rush Enterprises Inc - Class B ^(a)	11,863		269	Prudential Bancorp Inc	6,246		92
Ruth's Hospitality Group Inc	25,468		395	Pulaski Financial Corp	4,791		71
Shake Shack Inc ^(a)	203		9	Riverview Bancorp Inc	28,105		133
Shoe Carnival Inc	24,291		546	SI Financial Group Inc	1,687		21
Sonic Automotive Inc	28,175		702	Sterling Bancorp/DE	60,954		938
Sonic Corp	43,765		1,249	Territorial Bancorp Inc	10,109		282
Sportsman's Warehouse Holdings Inc ^(a)	2,311		25	Timberland Bancorp Inc/WA	7,281		88
Stage Stores Inc	41,337		402	United Community Financial Corp/OH	35,453		194
Stein Mart Inc	11,438		102	United Financial Bancorp Inc	16,200		210
Systemax Inc ^(a)	4,319		40	Washington Federal Inc	137,580		3,430
Tilly's Inc ^(a)	6,513		48	Waterstone Financial Inc	46,400		618
Trans World Entertainment Corp ^(a)	33,798		128	Wayne Savings Bancshares Inc	1,380		16
Tuesday Morning Corp ^(a)	19,794		108	Westfield Financial Inc	23,009		179
Vera Bradley Inc ^(a)	4,834		61	WSFS Financial Corp	4,166		132
Vista Outdoor Inc ^(a)	11,619		520		$		32,756
Vitamin Shoppe Inc ^(a)	22,003		631
Wendy's Co/The	172,818		1,583	Semiconductors - 2.46%
				Advanced Micro Devices Inc ^(a)	48,506		103
West Marine Inc ^(a)	24,670		251
				Alpha & Omega Semiconductor Ltd ^(a)	21,864		195
Wingstop Inc ^(a)	348		8
				Amkor Technology Inc ^(a)	128,500		799
World Fuel Services Corp	444		20	Axcelis Technologies Inc ^(a)	61,314		171
Zumiez Inc ^(a)	743		13
				AXT Inc ^(a)	5,895		13
	$		79,375
				Brooks Automation Inc	93,248		1,029
Savings & Loans - 2.47%				Cabot Microelectronics Corp ^(a)	6,231		263
Ameriana Bancorp	2,687		63	Cascade Microtech Inc ^(a)	18,872		290
Anchor BanCorp Wisconsin Inc ^(a)	1,513		62	CEVA Inc ^(a)	2,031		47
Astoria Financial Corp	160,922		2,569	Cirrus Logic Inc ^(a)	22,410		691


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)	Shares Held Value (000's)

Semiconductors (continued)				Software (continued)
Cohu Inc	30,153	$	380	Take-Two Interactive Software Inc ^(a)	5,526	$	184
Cree Inc ^(a)	4,612		116	Verint Systems Inc ^(a)	308,529		14,680
Diodes Inc ^(a)	28,578		655	Xactly Corp ^(a)	519		5
DSP Group Inc ^(a)	30,936		312		$		51,546
EMCORE Corp ^(a)	4,146		28
Entegris Inc ^(a)	7,922		102	Storage & Warehousing - 0.15%
Exar Corp ^(a)	500		3	Mobile Mini Inc	40,630		1,391
				Wesco Aircraft Holdings Inc ^(a)	43,388		541
Fairchild Semiconductor International Inc ^(a)	150,529		2,511
FormFactor Inc ^(a)	59,449		490		$		1,932
GigOptix Inc ^(a)	4,322		11

Integrated Device Technology Inc ^(a)	7,150		182	Supranational Bank - 0.01%
				Banco Latinoamericano de Comercio Exterior	7,016		190
Integrated Silicon Solution Inc	26,607		598	SA
Intersil Corp	58,352		790
IXYS Corp	20,943		261
Kopin Corp ^(a)	12,171		32	Telecommunications - 1.24%
Kulicke & Soffa Industries Inc ^(a)	79,205		840	ADTRAN Inc	18,521		288
Lattice Semiconductor Corp ^(a)	15,411		71	Alaska Communications Systems Group Inc	6,092		14
				(a)
Magnachip Semiconductor Corp ^(a)	2,607		14
MaxLinear Inc ^(a)	1,016		13	Anixter International Inc ^(a)	8,741		599
Microsemi Corp ^(a)	15,140		545	Atlantic Tele-Network Inc	7,497		573
				Aviat Networks Inc ^(a)	32,554		33
MKS Instruments Inc	43,998		1,550
Nanometrics Inc ^(a)	4,194		64	Aware Inc ^(a)	17,409		56
OmniVision Technologies Inc ^(a)	147,531		4,259	Black Box Corp	39,004		476
				Calix Inc ^(a)	8,153		57
Pericom Semiconductor Corp	30,712		536
Photronics Inc ^(a)	126,929		1,217	Cincinnati Bell Inc ^(a)	251,705		949
PMC-Sierra Inc ^(a)	15,449		184	Communications Systems Inc	8,832		72
Power Integrations Inc	1,327		67	Comtech Telecommunications Corp	21,629		523
QLogic Corp ^(a)	90,019		1,117	Consolidated Communications Holdings Inc	3,272		72
Qorvo Inc ^(a)	14,450		635	DigitalGlobe Inc ^(a)	58,458		873
Richardson Electronics Ltd/United States	13,691		82	EarthLink Holdings Corp	54,676		467
Rovi Corp ^(a)	97,246		890	Extreme Networks Inc ^(a)	16,981		61
Rudolph Technologies Inc ^(a)	22,019		282	Finisar Corp ^(a)	27,284		310
Semtech Corp ^(a)	5,980		105	General Communication Inc ^(a)	31,295		637
Sigma Designs Inc ^(a)	47,734		420	Globalstar Inc ^(a)	64,696		116
Silicon Laboratories Inc ^(a)	147,551		7,373	Harmonic Inc ^(a)	104,117		600
				Hawaiian Telcom Holdco Inc ^(a)	4,967		114
Tessera Technologies Inc	52,759		1,845
Ultra Clean Holdings Inc ^(a)	22,231		108	HC2 Holdings Inc ^(a)	1,480		11
Ultratech Inc ^(a)	7,726		121	ID Systems Inc ^(a)	1,586		6
Veeco Instruments Inc ^(a)	5,489		99	IDT Corp - Class B	11,402		148
Xcerra Corp ^(a)	6,414		44	Inteliquent Inc	26,536		550
			$ 32,553	Intelsat SA ^(a)	3,838		25

				InterDigital Inc/PA	1,599		81
Software - 3.89%				Iridium Communications Inc ^(a)	110,006		903
Actua Corp ^(a)	587		8	Ixia ^(a)	831		12
Acxiom Corp ^(a)	22,899		507	KVH Industries Inc ^(a)	4,762		47
Allscripts Healthcare Solutions Inc ^(a)	21,529		303	Leap Wireless International Inc - Rights	64,745		163
American Software Inc/GA	4,034		41	(a),(b),(c)
Appfolio Inc ^(a)	343		6	Loral Space & Communications Inc ^(a)	1,222		55
Avid Technology Inc ^(a)	51,244		433	Lumos Networks Corp	1,677		22
Bottomline Technologies de Inc ^(a)	848		24	NeoPhotonics Corp ^(a)	6,074		50
Brightcove Inc ^(a)	517		3	NETGEAR Inc ^(a)	36,780		1,522
Broadridge Financial Solutions Inc	201,750		12,020	NeuStar Inc ^(a)	8,176		222
BroadSoft Inc ^(a)	114,925		3,674	Novatel Wireless Inc ^(a)	4,845		10
Concurrent Computer Corp	2,188		11	NTELOS Holdings Corp ^(a)	3,231		30
Digi International Inc ^(a)	29,969		387	Optical Cable Corp	8,872		28
Digital Turbine Inc ^(a)	766		1	ORBCOMM Inc ^(a)	45,234		268
Dun & Bradstreet Corp/The	97,500		11,102	Polycom Inc ^(a)	156,993		2,163
Epiq Systems Inc	36,454		503	Preformed Line Products Co	1,673		71
Everyday Health Inc ^(a)	6,868		65	Premiere Global Services Inc ^(a)	12,757		175
Glu Mobile Inc ^(a)	10,760		44	RF Industries Ltd	300		1
inContact Inc ^(a)	997		9	Shenandoah Telecommunications Co	3,229		151
InnerWorkings Inc ^(a)	15,300		114	ShoreTel Inc ^(a)	26,516		251
ManTech International Corp/VA	23,748		686	Spok Holdings Inc	22,500		406
MedAssets Inc ^(a)	906		21	Telenav Inc ^(a)	5,150		37
MINDBODY Inc ^(a)	324		5	Telephone & Data Systems Inc	52,430		1,502
Park City Group Inc ^(a)	404		5	TESSCO Technologies Inc	2,082		46
PDF Solutions Inc ^(a)	865		9	Ubiquiti Networks Inc ^(a)	1,340		39
Progress Software Corp ^(a)	33,190		806	ViaSat Inc ^(a)	856		56
PTC Inc ^(a)	220		8	Viavi Solutions Inc ^(a)	14,545		87
QAD Inc	1,498		38	Vonage Holdings Corp ^(a)	31,915		194
Sapiens International Corp NV	1,382		16	West Corp	9,063		216
SciQuest Inc ^(a)	2,288		27	Westell Technologies Inc ^(a)	9,001		12
Seachange International Inc ^(a)	8,077		52
SYNNEX Corp	64,996		5,749


COMMON STOCKS (continued)	Shares Held Value (000's)			COMMON STOCKS (continued)		Shares Held	Value(000			's)

Telecommunications (continued)				Water (continued)
Windstream Holdings Inc	786	$	5	SJW Corp		5,476		$	174
	$		16,455	York Water Co/The		3,206			74
							$		2,471

Textiles - 0.10%				TOTAL COMMON STOCKS			$		1,227,753
Culp Inc	810		24
Dixie Group Inc/The ^(a)	12,240		80	INVESTMENT COMPANIES - 6.86%		Shares Held	Value(000			's)
G&K Services Inc	7,909		521	Publicly Traded Investment Fund - 6.86%
UniFirst Corp/MA	6,614		695	Cash Account Trust - Government & Agency		833,412			834
	$		1,320	Portfolio - Government Cash Managed
				First American Government Obligations Fund		90,003,771			90,003
Toys, Games & Hobbies - 0.02%
JAKKS Pacific Inc ^(a)	28,974		229				$		90,837
LeapFrog Enterprises Inc ^(a)	8,019		7	TOTAL INVESTMENT COMPANIES			$		90,837
	$		236	Total Investments			$		1,318,590
				Other Assets in Excess of Liabilities, Net - 0.45%			$		6,016
Transportation - 1.16%				TOTAL NET ASSETS - 100.00%			$		1,324,606
Air Transport Services Group Inc ^(a)	89,159		873
ArcBest Corp	34,776		900	(a)	Non-Income Producing Security
Ardmore Shipping Corp	10,307		148	(b)	Security is Illiquid. At the end of the period, the value of these securities
Atlas Air Worldwide Holdings Inc ^(a)	31,389		1,295		totaled $3,270 or 0.25% of net assets.
CAI International Inc ^(a)	17,309		201	(c)	Fair value of these investments is determined in good faith by the Manager
Celadon Group Inc	18,277		265		under procedures established and periodically reviewed by the Board of
Covenant Transportation Group Inc ^(a)	4,611		89		Directors. At the end of the period, the fair value of these securities totaled
DHT Holdings Inc	84,738		666		$194 or 0.01% of net assets.
Dorian LPG Ltd ^(a)	20,141		238
Era Group Inc ^(a)	26,995		375		Portfolio Summary (unaudited)
Frontline Ltd/Bermuda ^(a)	20,421		65	Sector					Percent
GasLog Ltd	28,994		336	Financial					27.86	%
Genco Shipping & Trading Ltd ^(a)	4,236		10	Consumer, Non-cyclical					17.38	%
Gener8 Maritime Inc ^(a)	3,255		34	Industrial					12.89	%
Golden Ocean Group Ltd ^(a)	11,590		23	Consumer, Cyclical					12.06	%
Hornbeck Offshore Services Inc ^(a)	62,479		844	Technology					9.25	%
Hub Group Inc ^(a)	2,304		92	Exchange Traded Funds					6.86	%
International Shipholding Corp	7,458		15	Utilities					4.16	%
Marten Transport Ltd	40,269		660	Energy					3.93	%
Matson Inc	44,927		2,059	Communications					2.70	%
Navios Maritime Acquisition Corp	15,843		57	Basic Materials					2.41	%
Nordic American Offshore Ltd	4,062		24	Diversified					0.04	%
Nordic American Tankers Ltd	17,918		274	Government					0.01	%
PAM Transportation Services Inc ^(a)	8,556		306	Other Assets in Excess of Liabilities, Net					0.45	%
Patriot Transportation Holding Inc ^(a)	320		7	TOTAL NET ASSETS					100.00	%
Providence and Worcester Railroad Co	4,798		77
Radiant Logistics Inc ^(a)	1,310		5
Roadrunner Transportation Systems Inc ^(a)	23,577		251
Saia Inc ^(a)	8,545		202
Scorpio Bulkers Inc ^(a)	58,899		82
Scorpio Tankers Inc	220,803		2,014
Ship Finance International Ltd	33,876		578
Teekay Tankers Ltd	51,669		395
Tidewater Inc	24,171		298
Ultrapetrol Bahamas Ltd ^(a)	20,472		9
Universal Truckload Services Inc	893		14
USA Truck Inc ^(a)	10,009		181
UTI Worldwide Inc ^(a)	12,571		90
Werner Enterprises Inc	42,550		1,126
XPO Logistics Inc ^(a)	1,694		47
YRC Worldwide Inc ^(a)	4,966		91
	$		15,316

Trucking & Leasing - 0.59%
AMERCO	10,123		4,113
GATX Corp	51,440		2,402
Greenbrier Cos Inc/The	18,553		706
TAL International Group Inc ^(a)	22,268		378
Textainer Group Holdings Ltd	3,884		76
Willis Lease Finance Corp ^(a)	8,412		131
	$		7,806

Water - 0.19%
American States Water Co	26,441		1,078
Artesian Resources Corp	12,247		298
California Water Service Group	11,047		247
Connecticut Water Service Inc	8,122		299
Consolidated Water Co Ltd	17,133		189
Middlesex Water Co	4,336		112


Schedule of Investments
Tax-Exempt Bond Fund
October 31, 2015



				Principal					Principal
	BONDS- 0.61	%		Amount (000's) Value (000's)			MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)

	U.S. Municipals - 0.61%						California (continued)
	Oglala Sioux Tribe						Los Angeles Department of Water & Power
	5.75%, 10/01/2025^(a)		$	1,500	$	1,528	5.25%, 07/01/2038	$	1,000	$	1,099
							Los Angeles Unified School District/CA
	TOTAL BONDS			$		1,528	5.00%, 07/01/2029		1,000		1,132
				Principal			Metropolitan Water District of Southern
	MUNICIPAL BONDS - 100.69%			Amount (000's) Value (000's)			California
							5.00%, 07/01/2029		1,150		1,303
	Alabama - 1.42%						Morongo Band of Mission Indians/The
	Auburn University						6.50%, 03/01/2028^(a)		500		552
	5.00%, 06/01/2038		$	555	$	614	Oakland Unified School District/Alameda
	5.00%, 06/01/2038			945		1,027	County
	Birmingham Airport Authority (credit support						5.00%, 08/01/2034		2,210		2,466
	from AGM)						Port of Los Angeles
	5.25%, 07/01/2030^(b)			1,000		1,132	5.00%, 08/01/2031		1,240		1,395
	Selma Industrial Development Board						Regents of the University of California
	6.25%, 11/01/2033			700		808	Medical Center Pooled Revenue
				$		3,581	5.50%, 05/15/2027		1,375		1,485
	Alaska - 0.69%						Richmond Joint Powers Financing Authority
	Borough of Matanuska-Susitna AK (credit						6.25%, 07/01/2024		1,000		1,161
	support from ASSURED GTY)						Riverside Community Properties Development
	5.50%, 09/01/2023^(b)			1,500		1,724	Inc
							6.00%, 10/15/2038		1,150		1,346
							Sacramento Area Flood Control
	Arizona - 1.64%						Agency (credit support from BAM)
	Arizona Department of Transportation State						5.00%, 10/01/2039^(b)		1,340		1,502
	Highway Fund Revenue						San Diego Unified School District/CA
	5.00%, 07/01/2026			1,500		1,666	0.00%, 07/01/2032^(d)		5,000		2,622
	City of Phoenix Civic Improvement Corp						Southern California Public Power Authority
	5.00%, 07/01/2034			1,000		1,113	5.25%, 07/01/2028		1,000		1,179
	Industrial Development Authority of the						University of California
	County of Pima/The						5.00%, 05/15/2037		1,500		1,711
	6.55%, 12/01/2037			295		300	5.75%, 05/15/2025		1,380		1,611
	Navajo County Pollution Control Corp						West Contra Costa Unified School District
	5.75%, 06/01/2034			1,015		1,045	5.25%, 08/01/2033		1,000		1,152
				$		4,124			$		53,959

	California - 21.50%						Colorado - 1.74%
	Alum Rock Union Elementary School						Colorado Health Facilities Authority
	District						4.00%, 01/15/2045		2,030		2,002
	5.25%, 08/01/2043			1,000		1,129	Platte River Power Authority
	Bay Area Toll Authority						5.00%, 06/01/2026		1,135		1,282
	5.00%, 04/01/2034			2,500		2,847	Regional Transportation District
	California Educational Facilities Authority						6.00%, 01/15/2041		450		506
	5.00%, 01/01/2038^(c)			1,621		1,742	6.50%, 01/15/2030		500		579
	5.00%, 10/01/2038^(c)			2,700		2,985			$		4,369
	5.00%, 01/01/2039^(c)			8,148		8,945
							Connecticut - 2.02%
	California Pollution Control Financing						Mohegan Tribal Finance Authority
	Authority						7.00%, 02/01/2045^(a)		4,500		3,836
	4.30%, 07/01/2040			2,000		2,030
	5.00%, 07/01/2030^(a)			1,000		1,069	State of Connecticut (credit support from
							ACA)
	California Statewide Communities						6.60%, 07/01/2024^(b)		1,215		1,219
	Development Authority
	6.25%, 11/15/2019^(a)			500		544			$		5,055
	6.63%, 11/15/2024^(a)			500		581
							District of Columbia - 2.72%
	California Statewide Communities						District of Columbia
	Development Authority (credit support from						5.00%, 12/01/2023		1,785		2,061
	FHA INS)						5.00%, 12/01/2024		715		826
	6.63%, 08/01/2029^(b)			890		1,048
							6.38%, 10/01/2034		1,000		1,204
	California Statewide Communities						District of Columbia Water & Sewer
	Development Authority (credit support from						Authority (credit support from AGM)
	GNMA COLL)						5.50%, 10/01/2017^(b)		500		547
	4.90%, 07/20/2039^(b)			500		529
							District of Columbia Water & Sewer
	City of Los Angeles Department of Airports						Authority (credit support from AGM-CR
	5.00%, 05/15/2035			1,500		1,700	NATL)
	City of Vernon CA Electric System Revenue						5.50%, 10/01/2041^(b)		2,000		2,187
	5.13%, 08/01/2021			380		421			$		6,825
	5.13%, 08/01/2021			620		686
	Golden State Tobacco Securitization Corp						Florida - 3.09%
	5.75%, 06/01/2047			5,800		5,313	City of Lakeland FL Department of Electric
	Lancaster Redevelopment Agency Successor						Utilities
	Agency						5.25%, 10/01/2036		1,000		1,253
	6.50%, 08/01/2029			580		674


Schedule of Investments
Tax-Exempt Bond Fund
October 31, 2015



				Principal					Principal
	MUNICIPAL BONDS (continued)			Amount (000's) Value (000's)			MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)

	Florida (continued)						Illinois (continued)
	County of Miami-Dade FL Aviation						Village of Pingree Grove IL Special Service
	Revenue (credit support from ASSURED						Area No 7
	GTY)						6.00%, 03/01/2036	$	21	$	22
	5.25%, 10/01/2033^(b)		$	2,000	$	2,190			$		27,921
	Escambia County Health Facilities
	Authority (credit support from AMBAC)						Indiana - 1.49%
	5.95%, 07/01/2020^(b)			65		69	Indiana Finance Authority
	Miami-Dade County Educational Facilities						5.00%, 10/01/2044		700		736
	Authority (credit support from BHAC-CR)						5.38%, 11/01/2032		1,000		1,101
	5.50%, 04/01/2038^(b)			1,000		1,021	Indiana Municipal Power Agency
	Miami-Dade County School Board Foundation						6.00%, 01/01/2039		1,000		1,136
	Inc (credit support from ASSURED GTY)						Town of Shoals IN
	5.25%, 05/01/2028^(b)			2,000		2,221	7.25%, 11/01/2043		700		776
	Orange County Industrial Development								$		3,749
	Authority/FL
	8.00%, 07/01/2036^(a)			1,000		1,004	Iowa- 2.20%
							City of Altoona IA (credit support from CITY
				$		7,758	APPROP)
							5.75%, 06/01/2031^(b)		1,200		1,286
	Georgia - 0.47%
	City of Atlanta GA Water & Wastewater						Iowa Finance Authority
	Revenue						5.00%, 12/01/2019		4,000		4,250
	6.00%, 11/01/2027			1,000		1,193			$		5,536
							Kansas - 0.45%
	Idaho- 1.17	%					Kansas Development Finance Authority
	Idaho Health Facilities Authority						5.50%, 11/15/2029		1,000		1,140
	6.65%, 02/15/2021			2,000		2,546
	Idaho Housing & Finance Association						Kentucky - 2.41%
	5.85%, 07/01/2036			390		395	Kentucky Economic Development Finance
				$		2,941	Authority
	Illinois - 11.11%						5.38%, 08/15/2024		1,000		1,093
	Chicago Board of Education						5.63%, 08/15/2027		1,000		1,100
	5.25%, 12/01/2035			1,200		1,094	Kentucky Economic Development Finance
	Chicago O'Hare International Airport						Authority (credit support from ASSURED
	5.00%, 01/01/2033			1,200		1,341	GTY)
							6.00%, 12/01/2033^(b)		1,000		1,091
	City of Chicago IL
	0.00%, 01/01/2029^(d)			240		101	Kentucky State Property & Building
	5.25%, 01/01/2029			2,000		2,059	Commission (credit support from ASSURED
	7.13%, 03/15/2022			400		400	GTY)
							5.25%, 02/01/2025^(b)		1,000		1,125
	7.46%, 02/15/2026			250		181
							Paducah Electric Plant Board (credit support
	City of Chicago IL (credit support from						from ASSURED GTY)
	ASSURED GTY)						5.25%, 10/01/2035^(b)		1,500		1,645
	5.25%, 01/01/2025^(b)			2,000		2,066
	City of Chicago IL Wastewater Transmission								$		6,054
	Revenue						Louisiana - 2.12%
	5.00%, 01/01/2033			2,000		2,133	Lafayette Public Trust Financing
	City of Chicago IL Wastewater Transmission						Authority (credit support from AGM)
	Revenue (credit support from BHAC)						5.25%, 10/01/2030^(b)		1,000		1,134
	5.50%, 01/01/2038^(b)			1,000		1,071
							Louisiana Public Facilities Authority
	Gilberts Special Service Area No 24/IL						8.00%, 07/01/2039		1,000		1,006
	5.38%, 03/01/2034			317		269	8.38%, 07/01/2039		600		618
	Huntley Special Service Area No						Louisiana Public Facilities Authority (credit
	10/IL (credit support from ASSURED GTY)						support from FNMA)
	5.10%, 03/01/2029^(b)			1,000		1,042	0.00%, 12/01/2019^(b),(d)		1,500		1,430
	Illinois Finance Authority						New Orleans Aviation Board (credit support
	5.00%, 12/01/2015			750		753	from ASSURED GTY)
	5.38%, 08/15/2024			500		561	6.00%, 01/01/2023^(b)		1,000		1,136
	5.50%, 08/01/2037			1,000		1,085			$		5,324
	5.75%, 08/15/2030			1,050		1,203
	5.75%, 11/15/2037			1,500		1,652	Maryland - 0.47%
	6.00%, 03/01/2038			1,540		1,714	Maryland Economic Development Corp
	6.25%, 11/15/2035			1,000		1,153	5.75%, 06/01/2035		545		593
	6.50%, 11/01/2038			1,000		1,163	Maryland Health & Higher Educational
	7.00%, 02/15/2018			300		323	Facilities Authority
	7.25%, 11/01/2038			1,000		1,185	6.00%, 07/01/2041		500		577
	Illinois State Toll Highway Authority								$		1,170
	5.25%, 01/01/2030			1,000		1,114
							Massachusetts - 3.64%
	State of Illinois						Massachusetts Bay Transportation Authority
	5.50%, 07/01/2027			3,410		3,731	5.25%, 07/01/2028		2,000		2,545
	United City of Yorkville IL						Massachusetts Development Finance Agency
	5.75%, 03/01/2028			500		505	5.75%, 12/01/2042		1,000		1,164


		Principal						Principal
MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)			MUNICIPAL BONDS (continued)			Amount (000's) Value (000's)

Massachusetts (continued)					New York (continued)
Massachusetts Educational Financing					Metropolitan Transportation Authority
Authority					5.00%, 11/15/2034		$	1,390	$	1,594
4.90%, 07/01/2028	$	3,075	$	3,238	5.25%, 11/15/2030			1,500		1,717
Massachusetts Health & Educational Facilities					New York City Industrial Development
Authority (credit support from GO OF UNIV)					Agency (credit support from ASSURED
5.00%, 07/01/2038^(b)		1,000		1,075	GTY)
Massachusetts State College Building					6.13%, 01/01/2029^(b)			1,000		1,130
Authority (credit support from ST APPROP)					New York City Transitional Finance Authority
5.50%, 05/01/2039^(b)		1,000		1,124	Building Aid Revenue (credit support from
		$		9,146	ST AID WITHHLDG)
					5.25%, 01/15/2039^(b)			2,145		2,383
Michigan - 1.56%					New York Liberty Development Corp
City of Detroit MI Sewage Disposal System					5.00%, 11/15/2031			1,000		1,136
Revenue (credit support from AGM)					5.00%, 09/15/2040			1,000		1,145
7.00%, 07/01/2027^(b)		1,500		1,754
					5.25%, 10/01/2035			3,585		4,240
Wayne County Airport Authority					New York Liberty Development Corp (credit
5.00%, 12/01/2045		2,000		2,170	support from GO OF AUTH)
		$		3,924	5.00%, 12/15/2041^(b)			1,000		1,122
Minnesota - 0.69%					New York State Dormitory Authority (credit
City of Minneapolis MN					support from ASSURED GTY ST AID
6.75%, 11/15/2032		500		586	WITHHLDG)
					5.00%, 10/01/2023^(b)			2,000		2,239
City of Minneapolis MN (credit support from
ASSURED GTY)					Tompkins County Development Corp
6.50%, 11/15/2038^(b)		165		192	5.00%, 07/01/2027			1,115		1,194
6.50%, 11/15/2038^(b)		835		949				$		22,344
		$		1,727	North Carolina - 1.06%
Missouri - 0.73%					City of Raleigh NC Combined Enterprise
City of St Louis MO Airport Revenue (credit					System Revenue
support from NATL)					5.00%, 03/01/2031			1,000		1,132
5.50%, 07/01/2028^(b)		1,500		1,827	North Carolina Medical Care Commission
					5.25%, 10/01/2037			1,500		1,528
								$		2,660
Nebraska - 1.32%
Municipal Energy Agency of Nebraska (credit					Ohio- 2.56	%
support from BHAC)					American Municipal Power Inc
5.13%, 04/01/2029^(b)		1,000		1,114	5.25%, 02/15/2033			2,575		2,924
OmahaPublicPower District					City of Cincinnati OH
5.50%, 02/01/2039		1,000		1,106	5.00%, 12/01/2032			815		920
University of Nebraska					Ohio Air Quality Development Authority
5.25%, 07/01/2039		1,000		1,103	5.63%, 06/01/2018			1,000		1,068
		$		3,323	Ohio Housing Finance Agency (credit support
					from GNMA/FNMA/FHLMC)
Nevada - 0.44%					5.20%, 09/01/2029^(b)			485		508
County of Clark NV					Ohio Water Development Authority
5.13%, 07/01/2034		1,000		1,115	4.00%, 01/01/2034			1,000		1,016
								$		6,436

New Hampshire - 0.42%					Oklahoma - 0.31%
City of Manchester NH General Airport					Tulsa Airports Improvement Trust
Revenue (credit support from AGM)					5.00%, 06/01/2035			700		770
5.13%, 01/01/2030^(b)		1,000		1,059

					Pennsylvania - 2.42%
New Jersey - 2.39%					Allegheny County Industrial Development
Casino Reinvestment Development Authority					Authority
5.25%, 11/01/2039		750		756	6.00%, 07/15/2038			1,000		1,051
New Jersey Economic Development					City of Scranton PA
Authority					8.50%, 09/01/2022			600		628
5.00%, 09/01/2034		1,000		1,146	Pennsylvania Economic Development
5.75%, 04/01/2031		1,005		1,147	Financing Authority
5.75%, 06/01/2031		550		612	6.00%, 06/01/2031			500		500
New Jersey Housing & Mortgage Finance					Pennsylvania Turnpike Commission
Agency					0.00%, 12/01/2028^(d),(e)			800		886
6.38%, 10/01/2028		225		234	0.00%, 12/01/2034^(d),(e)			500		551
New Jersey Transportation Trust Fund					Pottsville Hospital Authority/PA
Authority					6.50%, 07/01/2028			2,300		2,465
5.25%, 06/15/2032		2,000		2,105				$		6,081
		$		6,000

New York - 8.90%
Brooklyn Arena Local Development Corp
6.38%, 07/15/2043		1,400		1,600
Hudson Yards Infrastructure Corp
5.75%, 02/15/2047		2,500		2,844


			Principal					Principal
MUNICIPAL BONDS (continued)			Amount (000's) Value (000's)			MUNICIPAL BONDS (continued)		Amount (000's) Value (000's)

South Carolina - 0.44%						Virginia (continued)
South Carolina Jobs-Economic Development						Shops at White Oak Village Community
Authority (credit support from ASSURED						Development Authority/The
GTY)							5.30%, 03/01/2017	$	100	$	103
5.38%, 02/01/2029^(b)		$	1,000	$	1,095	Washington County Industrial Development
						Authority/VA
							7.50%, 07/01/2029		750		859

Tennessee - 0.30%									$		5,232
Chattanooga Health Educational & Housing
Facility Board						Washington - 2.43%
5.50%, 10/01/2020			250		251	FYI Properties
Shelby County Health Educational & Housing							5.50%, 06/01/2039		1,000		1,123
Facilities Board						State of Washington
5.63%, 09/01/2026			500		510		6.40%, 06/01/2017		1,520		1,605
			$		761	Washington Health Care Facilities Authority
							7.38%, 03/01/2038		1,000		1,207


Texas- 7.65	%					Washington Health Care Facilities
Capital Area Cultural Education Facilities						Authority (credit support from AGM)
Finance Corp							5.50%, 08/15/2038^(b)		1,000		1,084
6.13%, 04/01/2045			1,000		1,148


Central Texas Turnpike System						Washington Higher Education Facilities
5.00%, 08/15/2031			1,285		1,429		Authority
							5.63%, 10/01/2040		1,000		1,068

City of Houston TX Airport System Revenue									$		6,087
5.00%, 07/01/2029			2,000		2,133
Dallas County Flood Control District No 1						West Virginia - 0.65%
6.75%, 04/01/2016			35		35	County of Ohio WV
Gregg County Health Facilities Development							5.85%, 06/01/2034		250		256
Corp						West Virginia Hospital Finance Authority
5.00%, 10/01/2016			600		607		5.50%, 06/01/2034		1,250		1,378
Harris County Industrial Development Corp									$		1,634
5.00%, 02/01/2023			400		439
Harris County-Houston Sports Authority						Wisconsin - 3.58%
5.00%, 11/15/2030			2,000		2,267	City of Superior WI (credit support from GO
						OF CORP)
New Hope Cultural Education Facilities Corp							5.38%, 11/01/2021^(b)		750		802
5.00%, 07/01/2047			3,000		3,069
North Texas Health Facilities Development						County of Milwaukee WI Airport
Corp (credit support from AGM)						Revenue (credit support from AGM)
5.00%, 09/01/2024^(b)			1,000		1,066		5.25%, 12/01/2025^(b)		4,000		4,197
North Texas Tollway Authority						Public Finance Authority
5.00%, 01/01/2045			1,000		1,104		5.25%, 04/01/2030		1,400		1,438
5.63%, 01/01/2033			615		666	State of Wisconsin (credit support from ST
5.63%, 01/01/2033			385		425	APPROP)
							5.38%, 05/01/2025^(b)		1,000		1,141
5.75%, 01/01/2033			1,130		1,251
Sea Breeze Public Facility Corp						Wisconsin Health & Educational Facilities
6.50%, 01/01/2046			100		102	Authority
Tarrant County Cultural Education Facilities							6.38%, 02/15/2029		500		588
Finance Corp (credit support from ASSURED							6.63%, 02/15/2039		720		853
GTY)									$		9,019
6.25%, 07/01/2028^(b)			1,000		1,131	TOTAL MUNICIPAL BONDS			$		252,941
Texas A&M University						Total Investments			$		254,469
5.00%, 05/15/2027			1,000		1,132	Liability for Floating Rate Notes Issued in Conjunction with
Texas Private Activity Bond Surface						Securities Held - (3.03)%
Transportation Corp						Notes with an interest rate of 0.02% at October		$	(7,621	) $	(7,621	)
7.00%, 12/31/2038			1,000		1,238	31, 2015 and contractual maturity of collateral
			$		19,242	from 2017-2020.^(f)
						Total Net Investments			$		246,848
Utah- 0.12	%					Other Assets in Excess of Liabilities, Net - 1.73%			$		4,351
Utah Housing Corp						TOTAL NET ASSETS - 100.00%			$		251,199
5.75%, 07/01/2036			305		311


Virgin Islands - 0.29%						(a)	Security exempt from registration under Rule 144A of the Securities Act of
Virgin Islands Public Finance Authority							1933. These securities may be resold in transactions exempt from
5.00%, 10/01/2025			650		725		registration, normally to qualified institutional buyers. At the end of the
							period, the value of these securities totaled $9,114 or 3.63% of net assets.
						(b)	Credit support indicates investments that benefit from credit enhancement
Virginia - 2.08%							or liquidity support provided by a third party bank, institution, or
County of Botetourt VA							government agency.
6.00%, 07/01/2034			1,000		1,032	(c)	Security or portion of underlying security related to Inverse Floaters
6.00%, 07/01/2044			1,000		1,021		entered into by the Fund. See Notes to Financial Statements for additional
Fairfax County Industrial Development							information.
Authority						(d)	Non-Income Producing Security
5.00%, 05/15/2035^(c)			700		783
						(e)	Variable Rate. Rate shown is in effect at October 31, 2015.
Roanoke Economic Development Authority						(f)	Floating rate securities. The interest rate(s) shown reflect the rates in
6.63%, 12/01/2044			1,295		1,434		effect at October 31, 2015

Currency Abbreviations

AUD

BRL

CAD

CHF

CNY

COP

DKK

EUR

GBP

HKD

HUF

IDR

INR

JPY

MXN

NZD

PLN

RON

RUB

SEK

TRY

USD/$

ZAR

Australian Dollar

Brazilian Real

Canadian Dollar

Swiss Franc

Chinese Renminbi

Colombian Peso

Danish Krone

Euro

British Pound Sterling

Hong Kong Dollar

Hungarian Forint

Indonesian Rupiah

Indian Rupee

Japanese Yen

Mexican Peso

New Zealand Dollar

Polish Zloty

Romanian New Leu

Russian Rouble

Swedish Krona

Turkish Lira

United States Dollar

South African Rand

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net	Net Realized					Dividends				Total
			Value,		Investment	and Unrealized			Total From		from Net		Tax Return		Dividends			Net Asset
			Beginning		Income	Gain (Loss) on			Investment		Investment		of Capital		and			Value, End
			of Period		(Loss)(a)	Investments			Operations		Income		Distribution		Distributions			of Period
CALIFORNIA MUNICIPAL FUND
Class A shares
2015		$	10.51	$	0.41	($0.03	)	$	0.38		($0.43	)	$–		($0.43	)	$	10.46
2014			9.75		0.43	0.74			1.17		(0.41	)	–		(0.41	)		10.51
2013			10.45		0.43	(0.69	)		(0.26	)	(0.44	)	–		(0.44	)		9.75
2012			9.71		0.43	0.73			1.16		(0.42	)	–		(0.42	)		10.45
2011			10.00		0.46	(0.28	)		0.18		(0.47	)	–		(0.47	)		9.71
Class C shares
2015			10.53		0.31	(0.03	)		0.28		(0.33	)	–		(0.33	)		10.48
2014			9.77		0.33	0.74			1.07		(0.31	)	–		(0.31	)		10.53
2013			10.47		0.33	(0.70	)		(0.37	)	(0.33	)	–		(0.33	)		9.77
2012			9.73		0.34	0.73			1.07		(0.33	)	–		(0.33	)		10.47
2011			10.01		0.37	(0.27	)		0.10		(0.38	)	–		(0.38	)		9.73
Class P shares
2015	(d)		10.48		0.08	0.01			0.09		(0.11	)	–		(0.11	)		10.46
CORE PLUS BOND FUND(h)
Class A shares
2015			10.97		0.24	(0.17	)		0.07		(0.24	)	–		(0.24	)		10.80
2014			10.80		0.23	0.20			0.43		(0.26	)	–		(0.26	)		10.97
2013			11.09		0.24	(0.30	)		(0.06	)	(0.23	)	–		(0.23	)		10.80
2012			10.63		0.29	0.49			0.78		(0.32	)	–		(0.32	)		11.09
2011			10.57		0.37	0.08			0.45		(0.38	)	(0.01	)	(0.39	)		10.63
Class C shares
2015			10.97		0.14	(0.16	)		(0.02	)	(0.15	)	–		(0.15	)		10.80
2014			10.80		0.14	0.19			0.33		(0.16	)	–		(0.16	)		10.97
2013			11.09		0.15	(0.30	)		(0.15	)	(0.14	)	–		(0.14	)		10.80
2012			10.63		0.20	0.50			0.70		(0.24	)	–		(0.24	)		11.09
2011			10.57		0.28	0.08			0.36		(0.29	)	(0.01	)	(0.30	)		10.63


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



				Ratio of		Ratio of Expenses to		Ratio of Net
				Expenses to		Average Net Assets		Investment Income
			Net Assets, End of	Average Net		(Excluding Interest		to Average Net		Portfolio
Total Return(b)			Period (in thousands)	Assets		Expense and Fees)		Assets		Turnover Rate


3.67	%	$	201,572	0.81	%	0.78	%(c)	3.92	%	26.6	%
12.28			215,618	0.81		0.77	(c)	4.25		28.7
(2.57	)		163,521	0.81		0.77	(c)	4.25		20.4
12.18			212,099	0.81		0.77	(c)	4.26		21.9
2.03			202,248	0.86		0.81	(c)	4.91		45.4

2.70			16,014	1.74		1.71	(c)	2.99		26.6
11.15			11,563	1.79		1.75	(c)	3.27		28.7
(3.57	)		8,301	1.84		1.80	(c)	3.23		20.4
11.12			10,486	1.74		1.70	(c)	3.33		21.9
1.15			9,786	1.82		1.77	(c)	3.95		45.4

0.91	(e)		6,710	0.68 (f)	,(g)	0.65 (c)	,(f)	3.88	(f)	26.6	(f)


0.63			96,057	0.88	(g)	–		2.16		208.3
4.02			101,747	0.88	(g)	–		2.15		204.5
(0.52	)		106,666	0.94	(g)	–		2.16		205.6
7.49			127,605	0.94	(g)	–		2.65		218.6
4.33			130,506	0.94	(g)	–		3.50		265.5

(0.23	)		7,020	1.75	(g)	–		1.28		208.3
3.12			6,654	1.75	(g)	–		1.28		204.5
(1.33	)		6,967	1.75	(g)	–		1.35		205.6
6.63			8,861	1.75	(g)	–		1.82		218.6
3.49			7,106	1.75	(g)	–		2.68		265.5


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net	Net Realized				Dividends		Total
		Value,		Investment	and Unrealized		Total From		from Net		Dividends		Net Asset
		Beginning		Income	Gain (Loss) on		Investment		Investment		and		Value, End
		of Period		(Loss)(a)	Investments		Operations		Income		Distributions		of Period	Total Return(b)
DIVERSIFIED INTERNATIONAL FUND
Class A shares
2015	$	11.96	$	0.15	($0.44	)	($0.29	)	($0.12	)	($0.12	)	$11.55	(2.39	)%
2014		11.79		0.13	0.22		0.35		(0.18	)	(0.18	)	11.96	2.94
2013		9.88		0.14	1.93		2.07		(0.16	)	(0.16	)	11.79	21.15
2012		9.41		0.16	0.41		0.57		(0.10	)	(0.10	)	9.88	6.13
2011		9.80		0.15	(0.45	)	(0.30	)	(0.09	)	(0.09	)	9.41	(3.17	)
Class C shares
2015		11.91		0.06	(0.43	)	(0.37	)	(0.03	)	(0.03	)	11.51	(3.12	)
2014		11.77		0.04	0.21		0.25		(0.11	)	(0.11	)	11.91	2.10
2013		9.86		0.07	1.93		2.00		(0.09	)	(0.09	)	11.77	20.47
2012		9.38		0.10	0.41		0.51		(0.03	)	(0.03	)	9.86	5.47
2011		9.78		0.08	(0.45	)	(0.37	)	(0.03	)	(0.03	)	9.38	(3.78	)
Class P shares
2015		11.90		0.19	(0.44	)	(0.25	)	(0.17	)	(0.17	)	11.48	(2.11	)
2014		11.74		0.17	0.21		0.38		(0.22	)	(0.22	)	11.90	3.25
2013		9.85		0.19	1.90		2.09		(0.20	)	(0.20	)	11.74	21.55
2012		9.38		0.20	0.41		0.61		(0.14	)	(0.14	)	9.85	6.67
2011		9.80		0.14	(0.42	)	(0.28	)	(0.14	)	(0.14	)	9.38	(2.93	)


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net	Net Realized					Dividends		Total
		Value,		Investment	and Unrealized			Total From		from Net		Dividends			Net Asset
		Beginning		Income	Gain (Loss) on			Investment		Investment		and			Value, End
		of Period		(Loss)(a)	Investments			Operations		Income		Distributions			of Period	Total Return(b)
EQUITY INCOME FUND
Class A shares
2015	$	26.27	$	0.54	($0.50	)	$	0.04		($0.51	)	($0.51	)	$	25.80	0.16	%
2014		23.14		0.56	3.04			3.60		(0.47	)	(0.47	)		26.27	15.66
2013		19.47		0.55	3.65			4.20		(0.53	)	(0.53	)		23.14	21.87
2012		17.57		0.50	1.87			2.37		(0.47	)	(0.47	)		19.47	13.64
2011		16.91		0.49	0.63			1.12		(0.46	)	(0.46	)		17.57	6.69
Class C shares
2015		25.69		0.34	(0.49	)		(0.15	)	(0.32	)	(0.32	)		25.22	(0.57	)
2014		22.65		0.37	2.96			3.33		(0.29	)	(0.29	)		25.69	14.79
2013		19.07		0.38	3.58			3.96		(0.38	)	(0.38	)		22.65	21.01
2012		17.22		0.35	1.84			2.19		(0.34	)	(0.34	)		19.07	12.83
2011		16.59		0.36	0.61			0.97		(0.34	)	(0.34	)		17.22	5.87
Class P shares
2015		26.28		0.62	(0.50	)		0.12		(0.59	)	(0.59	)		25.81	0.45
2014		23.15		0.62	3.05			3.67		(0.54	)	(0.54	)		26.28	15.99
2013		19.47		0.61	3.66			4.27		(0.59	)	(0.59	)		23.15	22.27
2012		17.57		0.54	1.88			2.42		(0.52	)	(0.52	)		19.47	13.91
2011		16.93		0.51	0.66			1.17		(0.53	)	(0.53	)		17.57	6.95

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net	Net Realized				Dividends		Distributions		Total
			Value,		Investment	and Unrealized		Total From		from Net		from		Dividends			Net Asset
			Beginning		Income	Gain (Loss) on		Investment		Investment		Realized		and			Value, End
			of Period		(Loss)(a)	Investments		Operations		Income		Gains		Distributions			of Period
GLOBAL DIVERSIFIED INCOME FUND
Class A shares
2015		$	14.76	$	0.65	($0.86	)	($0.21	)	($0.61	)	($0.35	)	($0.96	)	$	13.59
2014			14.23		0.63	0.51		1.14		(0.61	)	–		(0.61	)		14.76
2013			14.14		0.67	0.20		0.87		(0.66	)	(0.12	)	(0.78	)		14.23
2012			12.98		0.76	1.16		1.92		(0.72	)	(0.04	)	(0.76	)		14.14
2011			13.35		0.79	(0.35	)	0.44		(0.70	)	(0.11	)	(0.81	)		12.98
Class C shares
2015			14.69		0.54	(0.87	)	(0.33	)	(0.50	)	(0.35	)	(0.85	)		13.51
2014			14.17		0.52	0.51		1.03		(0.51	)	–		(0.51	)		14.69
2013			14.08		0.55	0.22		0.77		(0.56	)	(0.12	)	(0.68	)		14.17
2012			12.93		0.66	1.15		1.81		(0.62	)	(0.04	)	(0.66	)		14.08
2011			13.30		0.69	(0.35	)	0.34		(0.60	)	(0.11	)	(0.71	)		12.93
Class P shares
2015			14.69		0.69	(0.87	)	(0.18	)	(0.64	)	(0.35	)	(0.99	)		13.52
2014			14.17		0.66	0.51		1.17		(0.65	)	–		(0.65	)		14.69
2013			14.09		0.69	0.21		0.90		(0.70	)	(0.12	)	(0.82	)		14.17
2012			12.93		0.79	1.16		1.95		(0.75	)	(0.04	)	(0.79	)		14.09
2011			13.31		0.83	(0.36	)	0.47		(0.74	)	(0.11	)	(0.85	)		12.93
GLOBAL REAL ESTATE SECURITIES FUND
Class A shares
2015			8.72		0.10	0.21		0.31		(0.23	)	(0.05	)	(0.28	)		8.75
2014			8.30		0.10	0.76		0.86		(0.16	)	(0.28	)	(0.44	)		8.72
2013			7.83		0.11	0.94		1.05		(0.43	)	(0.15	)	(0.58	)		8.30
2012			6.72		0.10	1.16		1.26		(0.15	)	–		(0.15	)		7.83
2011			6.83		0.08	(0.06	)	0.02		(0.09	)	(0.04	)	(0.13	)		6.72
Class C shares
2015			8.50		0.03	0.20		0.23		(0.18	)	(0.05	)	(0.23	)		8.50
2014			8.12		0.03	0.74		0.77		(0.11	)	(0.28	)	(0.39	)		8.50
2013			7.67		0.04	0.93		0.97		(0.37	)	(0.15	)	(0.52	)		8.12
2012			6.59		0.05	1.14		1.19		(0.11	)	–		(0.11	)		7.67
2011			6.71		0.03	(0.06	)	(0.03	)	(0.05	)	(0.04	)	(0.09	)		6.59
Class P shares
2015			9.25		0.12	0.24		0.36		(0.25	)	(0.05	)	(0.30	)		9.31
2014			8.78		0.12	0.81		0.93		(0.18	)	(0.28	)	(0.46	)		9.25
2013			8.24		0.14	1.00		1.14		(0.45	)	(0.15	)	(0.60	)		8.78
2012			7.07		0.14	1.20		1.34		(0.17	)	–		(0.17	)		8.24
2011	(f)		7.35		0.11	(0.28	)	(0.17	)	(0.11	)	–		(0.11	)		7.07


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.


						Ratio of Expenses to
						Average Net Assets
						(Excluding
				Ratio of		Dividends and		Ratio of Net
				Expenses to		Interest Expense on		Investment Income
			Net Assets, End of	Average Net		Short Sales and Short		to Average Net		Portfolio
Total Return(b)			Period (in thousands)	Assets		Sale Fees)		Assets		Turnover Rate


(1.49	)%	$	2,353,934	1.09	%	1.08	%	4.64	%	76.9	%
8.18			2,466,867	1.17	(c)	1.08	(d)	4.33		83.4
6.40			2,658,057	1.15	(c)	1.10	(d)	4.71		79.0
15.25			2,019,170	1.13	(c)	–		5.64		50.8
3.25			996,753	1.16	(c)	–		5.94		47.6

(2.17	) (e)		2,677,807	1.85		1.84		3.88		76.9
7.27	(e)		2,766,661	1.92	(c)	1.83	(d)	3.56		83.4
5.65			2,372,549	1.91	(c)	1.86	(d)	3.94		79.0
14.39			1,535,844	1.89	(c)	–		4.87		50.8
2.55			727,143	1.90	(c)	–		5.22		47.6

(1.25	)		2,972,152	0.83	(c)	0.82	(d)	4.90		76.9
8.43			3,329,928	0.91	(c)	0.82	(d)	4.55		83.4
6.63			2,285,742	0.89	(c)	0.84	(d)	4.93		79.0
15.59			1,125,168	0.90	(c)	–		5.84		50.8
3.51			420,384	0.83	(c)	–		6.38		47.6


3.59			146,690	1.32	(c)	–		1.11		47.5
11.07			102,093	1.32	(c)	–		1.16		29.3
13.94			70,426	1.37	(c)	–		1.40		52.4
19.08			20,896	1.45	(c)	–		1.46		87.9
0.28			13,483	1.45	(c)	–		1.18		78.8

2.75			59,807	2.09	(c)	–		0.35		47.5
10.08			47,399	2.14	(c)	–		0.33		29.3
13.19			24,808	2.20	(c)	–		0.53		52.4
18.27			5,021	2.20	(c)	–		0.70		87.9
(0.52	)		2,887	2.20	(c)	–		0.45		78.8

3.98			226,953	1.03	(c)	–		1.34		47.5
11.33			109,673	1.06	(c)	–		1.39		29.3
14.36			51,000	1.08	(c)	–		1.61		52.4
19.37			6,970	1.09	(c)	–		1.78		87.9
(2.25	) (g)		3,378	1.10 (c)	,(h)	–		1.80	(h)	78.8	(h)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period	Total Return(b)
GOVERNMENT & HIGH QUALITY BOND FUND
Class A shares
2015	$	11.03	$	0.26	($	0.06	)	$	0.20		($	0.30	)	($	0.30	)	$	10.93	1.80	%
2014		10.98		0.24		0.13			0.37			(0.32	)		(0.32	)		11.03	3.39
2013		11.37		0.24		(0.31	)		(0.07	)		(0.32	)		(0.32	)		10.98	(0.61	)
2012		11.26		0.31		0.20			0.51			(0.40	)		(0.40	)		11.37	4.58
2011		11.28		0.37		0.02			0.39			(0.41	)		(0.41	)		11.26	3.60
Class C shares
2015		11.02		0.15		(0.04	)		0.11			(0.21	)		(0.21	)		10.92	0.97
2014		10.97		0.15		0.12			0.27			(0.22	)		(0.22	)		11.02	2.52
2013		11.36		0.15		(0.31	)		(0.16	)		(0.23	)		(0.23	)		10.97	(1.44	)
2012		11.25		0.21		0.20			0.41			(0.30	)		(0.30	)		11.36	3.73
2011		11.27		0.28		0.02			0.30			(0.32	)		(0.32	)		11.25	2.76
Class P shares
2015		11.05		0.26		(0.04	)		0.22			(0.31	)		(0.31	)		10.96	1.99
2014		11.00		0.25		0.13			0.38			(0.33	)		(0.33	)		11.05	3.47
2013		11.39		0.25		(0.31	)		(0.06	)		(0.33	)		(0.33	)		11.00	(0.52	)
2012		11.28		0.32		0.20			0.52			(0.41	)		(0.41	)		11.39	4.68
2011		11.28		0.37		0.05			0.42			(0.42	)		(0.42	)		11.28	3.87

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net	Net Realized				Dividends		Distributions		Total
			Value,		Investment	and Unrealized		Total From		from Net		from		Dividendset			Net Ass
			Beginning		Income	Gain (Loss) on		Investment		Investment		Realized		and			Value, End
			of Period		(Loss)(a)	Investments		Operations		Income		Gains		Distributions			of Period
HIGH YIELD FUND
Class A shares
2015		$	7.72	$	0.40	($0.47	)	($0.07	)	($0.41	)	($0.08	)	($0.49	)	$	7.16
2014			7.94		0.43	(0.03	)	0.40		(0.46	)	(0.16	)	(0.62	)		7.72
2013			7.84		0.49	0.19		0.68		(0.51	)	(0.07	)	(0.58	)		7.94
2012			7.72		0.52	0.40		0.92		(0.54	)	(0.26	)	(0.80	)		7.84
2011			8.18		0.60	(0.28	)	0.32		(0.63	)	(0.15	)	(0.78	)		7.72
Class C shares
2015			7.78		0.35	(0.47	)	(0.12	)	(0.35	)	(0.08	)	(0.43	)		7.23
2014			8.01		0.38	(0.04	)	0.34		(0.41	)	(0.16	)	(0.57	)		7.78
2013			7.90		0.44	0.19		0.63		(0.45	)	(0.07	)	(0.52	)		8.01
2012			7.77		0.47	0.40		0.87		(0.48	)	(0.26	)	(0.74	)		7.90
2011			8.23		0.55	(0.29	)	0.26		(0.57	)	(0.15	)	(0.72	)		7.77
Class P shares
2015			7.72		0.42	(0.48	)	(0.06	)	(0.42	)	(0.08	)	(0.50	)		7.16
2014			7.94		0.45	(0.02	)	0.43		(0.49	)	(0.16	)	(0.65	)		7.72
2013			7.84		0.51	0.19		0.70		(0.53	)	(0.07	)	(0.60	)		7.94
2012			7.72		0.54	0.40		0.94		(0.56	)	(0.26	)	(0.82	)		7.84
2011			8.15		0.61	(0.24	)	0.37		(0.65	)	(0.15	)	(0.80	)		7.72
HIGH YIELD FUND I
Class A shares
2015			10.49		0.51	(0.75	)	(0.24	)	(0.53	)	(0.08	)	(0.61	)		9.64
2014			10.76		0.54	(0.06	)	0.48		(0.54	)	(0.21	)	(0.75	)		10.49
2013	(d)		10.70		0.36	0.07		0.43		(0.37	)	–		(0.37	)		10.76

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized					Dividends		Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net		from		Dividends				Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment		Realized		and				Value, End
		of Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions				of Period
INCOME FUND
Class A shares
2015	$	9.76	$	0.27		($0.26	)	$	0.01		($0.29	)	$–		($0.29		)	$	9.48
2014		9.65		0.32		0.13			0.45		(0.34	)	–		(0.34		)		9.76
2013		9.98		0.34		(0.31	)		0.03		(0.36	)	–		(0.36		)		9.65
2012		9.55		0.41		0.45			0.86		(0.43	)	–		(0.43		)		9.98
2011		9.65		0.45		(0.07	)		0.38		(0.48	)	–		(0.48		)		9.55
Class C shares
2015		9.81		0.20		(0.27	)		(0.07	)	(0.21	)	–		(0.21		)		9.53
2014		9.70		0.24		0.13			0.37		(0.26	)	–		(0.26		)		9.81
2013		10.03		0.26		(0.30	)		(0.04	)	(0.29	)	–		(0.29		)		9.70
2012		9.60		0.33		0.45			0.78		(0.35	)	–		(0.35		)		10.03
2011		9.70		0.38		(0.07	)		0.31		(0.41	)	–		(0.41		)		9.60
Class P shares
2015		9.78		0.29		(0.26	)		0.03		(0.31	)	–		(0.31		)		9.50
2014		9.67		0.33		0.14			0.47		(0.36	)	–		(0.36		)		9.78
2013		10.00		0.36		(0.31	)		0.05		(0.38	)	–		(0.38		)		9.67
2012		9.57		0.43		0.45			0.88		(0.45	)	–		(0.45		)		10.00
2011		9.67		0.46		(0.06	)		0.40		(0.50	)	–		(0.50		)		9.57
INFLATION PROTECTION FUND
Class A shares
2015		8.62		0.01		(0.23	)		(0.22	)	(0.11	)	–		(0.11		)		8.29
2014		8.69		0.05		0.04			0.09		–		(0.16	)	(0.16		)		8.62
2013		9.32		0.02		(0.63	)		(0.61	)	(0.02	)	–		(0.02		)		8.69
2012		8.70		0.04		0.59			0.63		(0.01	)	–		(0.01		)		9.32
2011		8.29		0.25		0.38			0.63		(0.22	)	–		(0.22		)		8.70
Class C shares
2015		8.36		(0.10	)	(0.18	)		(0.28	)	(0.09	)	–		(0.09		)		7.99
2014		8.50		(0.02	)	0.04			0.02		–		(0.16	)	(0.16		)		8.36
2013		9.16		(0.05	)	(0.61	)		(0.66	)	–		–		–				8.50
2012		8.61		(0.02	)	0.57			0.55		–		–		–				9.16
2011		8.23		0.17		0.38			0.55		(0.17	)	–		(0.17		)		8.61


						FINANCIAL HIGHLIGHTS
						PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized				Dividends		Total
		Value,		Investment		and Unrealized		Total From		from Net		Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment		Investment		and			Value, End
		of Period		(Loss)(a)		Investments		Operations		Income		Distributions			of Period	Total Return(b)
INTERNATIONAL EMERGING MARKETS FUND
Class A shares
2015	$	25.01	$	0.19		($3.56	)	($3.37	)	($0.27	)	($0.27	)	$	21.37	(13.56	)%
2014		25.11		0.18		(0.23	)	(0.05	)	(0.05	)	(0.05	)		25.01	(0.18	)
2013		24.52		0.18		0.65		0.83		(0.24	)	(0.24	)		25.11	3.34
2012		23.76		0.20		0.74		0.94		(0.18	)	(0.18	)		24.52	4.05
2011		25.69		0.25		(2.16	)	(1.91	)	(0.02	)	(0.02	)		23.76	(7.45	)
Class C shares
2015		23.96		(0.06	)	(3.39	)	(3.45	)	(0.06	)	(0.06	)		20.45	(14.43	)
2014		24.24		(0.05	)	(0.23	)	(0.28	)	–		–			23.96	(1.16	)
2013		23.69		(0.06	)	0.61		0.55		–		–			24.24	2.32
2012		22.98		(0.02	)	0.73		0.71		–		–			23.69	3.09
2011		25.06		0.02		(2.10	)	(2.08	)	–		–			22.98	(8.30	)
Class P shares
2015		24.84		0.26		(3.52	)	(3.26	)	(0.36	)	(0.36	)		21.22	(13.24	)
2014		24.97		0.28		(0.23	)	0.05		(0.18	)	(0.18	)		24.84	0.20
2013		24.37		0.30		0.65		0.95		(0.35	)	(0.35	)		24.97	3.87
2012		23.65		0.32		0.71		1.03		(0.31	)	(0.31	)		24.37	4.51
2011		25.60		0.48		(2.28	)	(1.80	)	(0.15	)	(0.15	)		23.65	(7.09	)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends			Net Asset
			Beginning		Income		Gain (Loss) on			Investment		Investment		Realized		and			Value, End
			of Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions			of Period
INTERNATIONAL FUND I
Class A shares
2015		$	13.63	$	0.14		($0.01	)	$	0.13		($0.31	)	$–		($0.31	)	$	13.45
2014	(e)		13.71		–		(0.08	)		(0.08	)	–		–		–			13.63
Class P shares
2015			13.65		0.19		(0.01	)		0.18		(0.32	)	–		(0.32	)		13.51
2014	(e)		13.71		0.09		(0.15	)		(0.06	)	–		–		–			13.65
LARGECAP GROWTH FUND
Class A shares
2015			11.55		(0.02	)	0.63			0.61		–		(1.22	)	(1.22	)		10.94
2014			11.25		(0.02	)	1.53			1.51		–		(1.21	)	(1.21	)		11.55
2013			8.68		0.02		2.56			2.58		(0.01	)	–		(0.01	)		11.25
2012			7.87		(0.01	)	0.82			0.81		–		–		–			8.68
2011			7.54		(0.03	)	0.36			0.33		–		–		–			7.87
Class C shares
2015			10.79		(0.10	)	0.59			0.49		–		(1.22	)	(1.22	)		10.06
2014			10.67		(0.10	)	1.43			1.33		–		(1.21	)	(1.21	)		10.79
2013			8.30		(0.07	)	2.44			2.37		–		–		–			10.67
2012			7.58		(0.08	)	0.80			0.72		–		–		–			8.30
2011			7.33		(0.09	)	0.34			0.25		–		–		–			7.58
Class P shares
2015			11.86		0.01		0.66			0.67		–		(1.22	)	(1.22	)		11.31
2014			11.51		0.01		1.57			1.58		(0.02	)	(1.21	)	(1.23	)		11.86
2013			8.90		0.04		2.64			2.68		(0.07	)	–		(0.07	)		11.51
2012			8.06		0.03		0.83			0.86		(0.02	)	–		(0.02	)		8.90
2011			7.69		–		0.37			0.37		–		–		–			8.06
LARGECAP GROWTH FUND I
Class A shares
2015			13.47		(0.06	)	1.17			1.11		–		(1.27	)	(1.27	)		13.31
2014			12.70		(0.06	)	1.60			1.54		–		(0.77	)	(0.77	)		13.47
2013	(h)		10.52		(0.04	)	2.22			2.18		–		–		–			12.70
Class P shares
2015			13.58		(0.01	)	1.19			1.18		(0.03	)	(1.27	)	(1.30	)		13.46
2014	(e)		12.79		(0.01	)	0.80			0.79		–		–		–			13.58

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net		Net Realized			Dividends		Distributions		Total
			Value,		Investment		and Unrealized		Total From	from Net		from		Dividends			Net Asset
			Beginning		Income		Gain (Loss) on		Investment	Investment		Realized		and			Value, End
			of Period		(Loss)(a)		Investments		Operations	Income		Gains		Distributions			of Period
LARGECAP S&P 500 INDEX FUND
Class A shares
2015		$	14.35	$	0.23	$	0.44	$	0.67	($0.22	)	($0.01	)	($0.23	)	$	14.79
2014			12.46		0.20		1.86		2.06	(0.17	)	–		(0.17	)		14.35
2013			10.01		0.18		2.42		2.60	(0.15	)	–		(0.15	)		12.46
2012			8.88		0.14		1.12		1.26	(0.13	)	–		(0.13	)		10.01
2011			8.35		0.12		0.50		0.62	(0.09	)	–		(0.09	)		8.88
Class C shares
2015			14.08		0.11		0.44		0.55	(0.13	)	(0.01	)	(0.14	)		14.49
2014			12.29		0.09		1.82		1.91	(0.12	)	–		(0.12	)		14.08
2013			9.89		0.09		2.41		2.50	(0.10	)	–		(0.10	)		12.29
2012			8.78		0.08		1.11		1.19	(0.08	)	–		(0.08	)		9.89
2011			8.26		0.06		0.50		0.56	(0.04	)	–		(0.04	)		8.78
LARGECAP VALUE FUND
Class A shares
2015			13.90		0.18		0.18		0.36	(0.15	)	(1.36	)	(1.51	)		12.75
2014			13.58		0.15		1.45		1.60	(0.11	)	(1.17	)	(1.28	)		13.90
2013			10.89		0.20		2.66		2.86	(0.17	)	–		(0.17	)		13.58
2012			9.31		0.14		1.52		1.66	(0.08	)	–		(0.08	)		10.89
2011			8.80		0.09		0.50		0.59	(0.08	)	–		(0.08	)		9.31
Class C shares
2015			13.58		0.07		0.17		0.24	(0.05	)	(1.36	)	(1.41	)		12.41
2014			13.35		0.04		1.42		1.46	(0.06	)	(1.17	)	(1.23	)		13.58
2013			10.74		0.08		2.64		2.72	(0.11	)	–		(0.11	)		13.35
2012			9.18		0.07		1.51		1.58	(0.02	)	–		(0.02	)		10.74
2011			8.70		0.02		0.49		0.51	(0.03	)	–		(0.03	)		9.18
Class P shares
2015			13.89		0.21		0.18		0.39	(0.20	)	(1.36	)	(1.56	)		12.72
2014	(d)		13.46		0.06		0.37		0.43	–		–		–			13.89


						FINANCIAL HIGHLIGHTS
						PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset	Net			Net Realized			Dividends		Distributions		Total
		Value,	Investment			and Unrealized		Total From	from Net		from		Dividends			Net Asset
		Beginning	Income			Gain (Loss) on		Investment	Investment		Realized		and			Value, End
		of Period	(Loss)(a)			Investments		Operations	Income		Gains		Distributions			of Period
MIDCAP FUND
Class A shares
2015	$	21.99	($0.01	)	$	1.35	$	1.34	$–		($1.08	)	($1.08	)	$	22.25
2014		19.87	0.02			2.52		2.54	–		(0.42	)	(0.42	)		21.99
2013		15.46	0.04			4.74		4.78	(0.14	)	(0.23	)	(0.37	)		19.87
2012		14.05	0.05			2.20		2.25	(0.03	)	(0.81	)	(0.84	)		15.46
2011		13.03	0.01			1.64		1.65	(0.14	)	(0.49	)	(0.63	)		14.05
Class C shares
2015		20.74	(0.17	)		1.28		1.11	–		(1.08	)	(1.08	)		20.77
2014		18.90	(0.12	)		2.38		2.26	–		(0.42	)	(0.42	)		20.74
2013		14.78	(0.09	)		4.53		4.44	(0.09	)	(0.23	)	(0.32	)		18.90
2012		13.54	(0.05	)		2.10		2.05	–		(0.81	)	(0.81	)		14.78
2011		12.62	(0.10	)		1.59		1.49	(0.08	)	(0.49	)	(0.57	)		13.54
Class P shares
2015		22.28	0.05			1.36		1.41	(0.07	)	(1.08	)	(1.15	)		22.54
2014		20.10	0.08			2.56		2.64	(0.04	)	(0.42	)	(0.46	)		22.28
2013		15.63	0.09			4.78		4.87	(0.17	)	(0.23	)	(0.40	)		20.10
2012		14.20	0.10			2.22		2.32	(0.08	)	(0.81	)	(0.89	)		15.63
2011		13.18	0.04			1.66		1.70	(0.19	)	(0.49	)	(0.68	)		14.20

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net			Net Realized			Dividends		Distributions		Total
		Value,		Investment			and Unrealized		Total From	from Net		from		Dividends			Net Asset
		Beginning		Income			Gain (Loss) on		Investment	Investment		Realized		and			Value, End
		of Period		(Loss)(a)			Investments		Operations	Income		Gains		Distributions			of Period
PRINCIPAL CAPITAL APPRECIATION FUND
Class A shares
2015	$	58.80	$	0.62		$	2.60	$	3.22	($0.53	)	($2.23	)	($2.76	)	$	59.26
2014		52.54		0.50			7.32		7.82	(0.41	)	(1.15	)	(1.56	)		58.80
2013		41.72		0.57			11.27		11.84	(0.53	)	(0.49	)	(1.02	)		52.54
2012		38.14		0.37			3.99		4.36	(0.30	)	(0.48	)	(0.78	)		41.72
2011		37.16		0.30			2.19		2.49	(0.40	)	(1.11	)	(1.51	)		38.14
Class C shares
2015		48.88		0.12			2.15		2.27	(0.20	)	(2.23	)	(2.43	)		48.72
2014		44.06		0.02			6.11		6.13	(0.16	)	(1.15	)	(1.31	)		48.88
2013		35.19		0.14			9.49		9.63	(0.27	)	(0.49	)	(0.76	)		44.06
2012		32.29		0.02			3.40		3.42	(0.04	)	(0.48	)	(0.52	)		35.19
2011		31.73		(0.03	)		1.86		1.83	(0.16	)	(1.11	)	(1.27	)		32.29
Class P shares
2015		59.49		0.77			2.63		3.40	(0.66	)	(2.23	)	(2.89	)		60.00
2014		53.15		0.62			7.40		8.02	(0.53	)	(1.15	)	(1.68	)		59.49
2013		42.23		0.67			11.40		12.07	(0.66	)	(0.49	)	(1.15	)		53.15
2012		38.56		0.48			4.05		4.53	(0.38	)	(0.48	)	(0.86	)		42.23
2011		37.62		0.38			2.22		2.60	(0.55	)	(1.11	)	(1.66	)		38.56

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net			Net Realized			Dividends		Distributions		Total
		Value,		Investment			and Unrealized		Total From	from Net		from		Dividends			Net Asset
		Beginning		Income			Gain (Loss) on		Investment	Investment		Realized		and			Value, End
		of Period		(Loss)(a)			Investments		Operations	Income		Gains		Distributions			of Period
REAL ESTATE SECURITIES FUND
Class A shares
2015	$	22.25	$	0.25		$	1.19	$	1.44	($0.25	)	($0.22	)	($0.47	)	$	23.22
2014		21.63		0.19			3.63		3.82	(0.29	)	(2.91	)	(3.20	)		22.25
2013		19.54		0.29			2.01		2.30	(0.21	)	–		(0.21	)		21.63
2012		17.40		0.19			2.08		2.27	(0.13	)	–		(0.13	)		19.54
2011		15.83		0.05			1.65		1.70	(0.13	)	–		(0.13	)		17.40
Class C shares
2015		21.95		0.08			1.17		1.25	(0.08	)	(0.22	)	(0.30	)		22.90
2014		21.38		0.03			3.59		3.62	(0.14	)	(2.91	)	(3.05	)		21.95
2013		19.33		0.12			1.99		2.11	(0.06	)	–		(0.06	)		21.38
2012		17.24		0.03			2.06		2.09	–		–		–			19.33
2011		15.74		(0.09	)		1.64		1.55	(0.05	)	–		(0.05	)		17.24
Class P shares
2015		22.24		0.32			1.20		1.52	(0.32	)	(0.22	)	(0.54	)		23.22
2014		21.62		0.24			3.64		3.88	(0.35	)	(2.91	)	(3.26	)		22.24
2013		19.53		0.36			2.01		2.37	(0.28	)	–		(0.28	)		21.62
2012		17.40		0.25			2.07		2.32	(0.19	)	–		(0.19	)		19.53
2011		15.83		0.07			1.70		1.77	(0.20	)	–		(0.20	)		17.40

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net		Net Realized					Dividends		Distributions		Total
			Value,		Investment		and Unrealized			Total From		from Net		from		Dividends			Net Asset
			Beginning		Income		Gain (Loss) on			Investment		Investment		Realized		and			Value, End
			of Period		(Loss)(a)		Investments			Operations		Income		Gains		Distributions			of Period
SHORT-TERM INCOME FUND
Class A shares
2015		$	12.23	$	0.17		($0.05	)	$	0.12		($0.17	)	$–		($0.17	)	$	12.18
2014			12.27		0.18		(0.03	)		0.15		(0.18	)	(0.01	)	(0.19	)		12.23
2013			12.28		0.17		(0.02	)		0.15		(0.16	)	–		(0.16	)		12.27
2012			11.97		0.22		0.30			0.52		(0.21	)	–		(0.21	)		12.28
2011			12.17		0.27		(0.18	)		0.09		(0.29	)	–		(0.29	)		11.97
Class C shares
2015			12.24		0.06		(0.06	)		–		(0.06	)	–		(0.06	)		12.18
2014			12.28		0.07		(0.03	)		0.04		(0.07	)	(0.01	)	(0.08	)		12.24
2013			12.29		0.07		(0.02	)		0.05		(0.06	)	–		(0.06	)		12.28
2012			11.97		0.12		0.31			0.43		(0.11	)	–		(0.11	)		12.29
2011			12.18		0.17		(0.19	)		(0.02	)	(0.19	)	–		(0.19	)		11.97
Class P shares
2015			12.23		0.19		(0.06	)		0.13		(0.19	)	–		(0.19	)		12.17
2014			12.27		0.20		(0.03	)		0.17		(0.20	)	(0.01	)	(0.21	)		12.23
2013			12.28		0.19		(0.02	)		0.17		(0.18	)	–		(0.18	)		12.27
2012			11.96		0.24		0.31			0.55		(0.23	)	–		(0.23	)		12.28
2011			12.16		0.27		(0.16	)		0.11		(0.31	)	–		(0.31	)		11.96
SMALLCAP FUND(d)
Class A shares
2015			21.74		(0.04	)	1.39			1.35		–		(2.47	)	(2.47	)		20.62
2014			21.60		(0.04	)	1.74			1.70		–		(1.56	)	(1.56	)		21.74
2013			15.50		0.03		6.21			6.24		(0.05	)	(0.09	)	(0.14	)		21.60
2012			13.76		0.01		1.73			1.74		–		–		–			15.50
2011			12.99		(0.07	)	0.84			0.77		–		–		–			13.76
Class C shares
2015			20.53		(0.20	)	1.30			1.10		–		(2.47	)	(2.47	)		19.16
2014			20.65		(0.21	)	1.65			1.44		–		(1.56	)	(1.56	)		20.53
2013			14.89		(0.11	)	5.96			5.85		–		(0.09	)	(0.09	)		20.65
2012			13.31		(0.09	)	1.67			1.58		–		–		–			14.89
2011			12.67		(0.18	)	0.82			0.64		–		–		–			13.31
Class P shares
2015			22.76		0.03		1.44			1.47		–		(2.47	)	(2.47	)		21.76
2014	(f)		22.83		0.01		(0.08	)		(0.07	)	–		–		–			22.76


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



				Ratio of		Ratio of Net
				Expenses to		Investment Income
			Net Assets, End of	Average Net		to Average Net		Portfolio
Total Return(b)			Period (in thousands)	Assets		Assets		Turnover Rate


0.98	%	$	297,899	0.68	%	1.39	%	56.4	%
1.20			277,110	0.69		1.45		49.1
1.19			336,352	0.76		1.36		50.1
4.38			359,554	0.77	(c)	1.81		47.9
0.76			320,548	0.76	(c)	2.27		43.6

0.00			84,886	1.57		0.50		56.4
0.30			90,275	1.57	(c)	0.57		49.1
0.38			105,547	1.57	(c)	0.55		50.1
3.62			99,524	1.58	(c)	1.01		47.9
(0.15	)		90,899	1.59	(c)	1.44		43.6

1.06			86,908	0.52	(c)	1.55		56.4
1.34			72,897	0.53	(c)	1.61		49.1
1.41			57,343	0.54	(c)	1.58		50.1
4.64			41,798	0.61	(c)	1.95		47.9
0.88			28,420	0.63	(c)	2.26		43.6


6.90			225,217	1.23	(c)	(0.19	)	69.2
8.08			189,911	1.23	(c)	(0.19	)	67.6
40.56			178,336	1.34	(c)	0.17		95.2
12.65			130,282	1.37	(c)	0.08		90.2
5.93			74,604	1.40	(c)	(0.50	)	76.1

5.99			25,086	2.07	(c)	(1.01	)	69.2
7.13			15,737	2.08	(c)	(1.04	)	67.6
39.51			12,344	2.08	(c)	(0.60	)	95.2
11.87			7,790	2.09	(c)	(0.59	)	90.2
5.05			2,342	2.20	(c)	(1.32	)	76.1

7.19	(e)		6,007	0.95	(c)	0.16		69.2
(0.31	) (g)		78	0.95 (c)	,(h)	0.13	(h)	67.6	(h)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset	Net			Net Realized					Dividends		Distributions		Total
			Value,	Investment			and Unrealized			Total From		from Net		from		Dividends			Net Asset
			Beginning	Income			Gain (Loss) on			Investment		Investment		Realized		and			Value, End
			of Period	(Loss)(a)			Investments			Operations		Income		Gains Distributions					of Period
SMALLCAP VALUE FUND II
Class A shares
2015		$	14.08	$–		$	0.14		$	0.14		($0.04	)	($1.50	)	($1.54	)	$	12.68
2014	(d)		13.75	(0.03	)		0.36			0.33		–		–		–			14.08
Class P shares
2015			14.09	0.04			0.14			0.18		(0.04	)	(1.50	)	(1.54	)		12.73
2014	(d)		13.75	–			0.34			0.34		–		–		–			14.09
TAX-EXEMPT BOND FUND
Class A shares
2015			7.42	0.30			(0.07	)		0.23		(0.31	)	–		(0.31	)		7.34
2014			7.00	0.31			0.41			0.72		(0.30	)	–		(0.30	)		7.42
2013			7.59	0.31			(0.60	)		(0.29	)	(0.30	)	–		(0.30	)		7.00
2012			7.10	0.30			0.49			0.79		(0.30	)	–		(0.30	)		7.59
2011			7.24	0.33			(0.14	)		0.19		(0.33	)	–		(0.33	)		7.10
Class C shares
2015			7.44	0.24			(0.07	)		0.17		(0.25	)	–		(0.25	)		7.36
2014			7.02	0.25			0.41			0.66		(0.24	)	–		(0.24	)		7.44
2013			7.60	0.25			(0.59	)		(0.34	)	(0.24	)	–		(0.24	)		7.02
2012			7.12	0.24			0.48			0.72		(0.24	)	–		(0.24	)		7.60
2011			7.25	0.27			(0.13	)		0.14		(0.27	)	–		(0.27	)		7.12
Class P shares
2015	(i)		7.31	0.06			–			0.06		(0.04	)	–		(0.04	)		7.33

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of California Municipal Fund, Core Plus Bond Fund (formerly Bond & Mortgage Securities Fund), Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, Inflation Protection Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap S&P 500 Index Fund, LargeCap Value Fund, MidCap Fund, MidCap Value Fund III, Money Market Fund, Principal Capital Appreciation Fund, Real Estate Securities Fund, Short-Term Income Fund, SmallCap Fund (formerly SmallCap Blend Fund), SmallCap Value Fund II and Tax-Exempt Bond Fund (26 of the portfolios constituting Principal Funds, Inc., collectively, the “Funds”), as of October 31, 2015, and the related statements of operations for the year then ended, statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian, agent banks, and brokers or by other appropriate auditing procedures where replies from brokers or agent banks were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds listed above constituting portfolios within Principal Funds, Inc. at October 31, 2015, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS,INC.
October 31, 2015 (unaudited)

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2015 to October 31, 2015), unless otherwise noted.

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, 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 section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. An annual fee of $15.00 or $30.00 may apply to IRA accounts and 403(b) accounts, respectively. These fees are not included in the table below. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

The second section 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 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 and do not reflect any transaction costs, such as sales charges on purchase payments, contingent deferred sales charges, redemption fees or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.


				Actual							Hypothetical
						Expenses Paid							Expenses Paid
		Beginning		Ending		During Period			Beginning		Ending		During Period
		Account		Account Value		May 1, 2015 to			Account		Account Value		May 1, 2015 to		Annualized
		Value May 1,		October 31,		October 31,			Value May 1,		October 31,		October 31,		Expense
		2015		2015		2015	^(a)		2015		2015		2015	^(a)	Ratio
California Municipal Fund
Class A	$	1,000.00	$	1,018.21	$	4.02		$	1,000.00	$	1,021.22	$	4.02		0.79	%
Class C		1,000.00		1,013.27		8.83			1,000.00		1,016.43		8.84		1.74
Class P		1,000.00		1,009.07		1.27	^(b)		1,000.00		1,021.78		3.47		0.68

California Municipal Fund
(Excluding Interest Expense and Fees)
Class A		1,000.00		1,018.20		3.87			1,000.00		1,021.33		3.88		0.76
Class C		1,000.00		1,013.30		8.68			1,000.00		1,016.48		8.73		1.71
Class P		1,000.00		1,009.10		1.22	^(b)		1,000.00		1,021.89		3.32		0.65

Core Plus Bond Fund
Class A		1,000.00		989.57		4.41			1,000.00		1,020.77		4.48		0.88
Class C		1,000.00		985.21		8.76			1,000.00		1,016.38		8.89		1.75

Diversified International Fund
Class A		1,000.00		933.71		6.68			1,000.00		1,018.30		6.97		1.37
Class C		1,000.00		929.73		10.17			1,000.00		1,014.67		10.61		2.09
Class P		1,000.00		934.85		4.97			1,000.00		1,020.06		5.19		1.02

Equity Income Fund
Class A		1,000.00		968.65		4.52			1,000.00		1,020.62		4.63		0.91
Class C		1,000.00		965.37		8.22			1,000.00		1,016.84		8.44		1.66
Class P		1,000.00		970.46		3.13			1,000.00		1,022.03		3.21		0.63

Global Diversified Income Fund
Class A		1,000.00		969.84		5.36			1,000.00		1,019.76		5.50		1.08
Class C		1,000.00		965.96		9.17			1,000.00		1,015.88		9.40		1.85
Class P		1,000.00		970.24		4.12			1,000.00		1,021.02		4.23		0.83


				SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS, INC.
October 31, 2015 (unaudited)


				Actual							Hypothetical
						Expenses Paid							Expenses Paid
		Beginning		Ending		During Period			Beginning		Ending		During Period
		Account		Account Value		May 1, 2015 to			Account		Account Value		May 1, 2015 to		Annualized
		Value May 1,		October 31,		October 31,			Value May 1,		October 31,		October 31,		Expense
		2015		2015		2015	^(a)		2015		2015		2015	^(a)	Ratio
Global Real Estate Securities Fund
Class A	$	1,000.00	$	993.80	$	6.83		$	1,000.00	$	1,018.35	$	6.92		1.36	%
Class C		1,000.00		989.52		10.63			1,000.00		1,014.52		10.76		2.12
Class P		1,000.00		995.66		5.28			1,000.00		1,019.91		5.35		1.05

Government & High Quality Bond Fund
Class A		1,000.00		1,000.34		4.03			1,000.00		1,021.17		4.08		0.80
Class C		1,000.00		996.16		8.20			1,000.00		1,016.99		8.29		1.63
Class P		1,000.00		1,001.75		3.53			1,000.00		1,021.68		3.57		0.70

High Yield Fund
Class A		1,000.00		974.04		4.18			1,000.00		1,020.97		4.28		0.84
Class C		1,000.00		970.43		8.05			1,000.00		1,017.04		8.24		1.62
Class P		1,000.00		974.67		3.53			1,000.00		1,021.63		3.62		0.71

High Yield Fund I
Class A		1,000.00		959.48		5.19			1,000.00		1,019.91		5.35		1.05

Income Fund
Class A		1,000.00		985.75		4.40			1,000.00		1,020.77		4.48		0.88
Class C		1,000.00		981.85		8.34			1,000.00		1,016.79		8.49		1.67
Class P		1,000.00		986.64		3.51			1,000.00		1,021.68		3.57		0.70

Inflation Protection Fund
Class A		1,000.00		963.95		4.50			1,000.00		1,020.62		4.63		0.91
Class C		1,000.00		960.34		8.15			1,000.00		1,016.89		8.39		1.65

International Emerging Markets Fund
Class A		1,000.00		834.77		7.54			1,000.00		1,016.99		8.29		1.63
Class C		1,000.00		829.95		12.68			1,000.00		1,011.34		13.94		2.75
Class P		1,000.00		836.09		5.88			1,000.00		1,018.80		6.46		1.27

International Fund I
Class A		1,000.00		927.00		7.04			1,000.00		1,017.90		7.38		1.45
Class P		1,000.00		929.16		5.25			1,000.00		1,019.76		5.50		1.08

LargeCap Growth Fund
Class A		1,000.00		1,018.62		5.50			1,000.00		1,019.76		5.50		1.08
Class C		1,000.00		1,015.14		9.80			1,000.00		1,015.48		9.80		1.93
Class P		1,000.00		1,020.76		4.23			1,000.00		1,021.02		4.23		0.83

LargeCap Growth Fund I
Class A		1,000.00		1,033.39		6.41			1,000.00		1,018.90		6.36		1.25
Class P		1,000.00		1,035.38		4.05			1,000.00		1,021.22		4.02		0.79

LargeCap S&P 500 Index Fund
Class A		1,000.00		1,004.76		2.48			1,000.00		1,022.74		2.50		0.49
Class C		1,000.00		1,001.38		6.56			1,000.00		1,018.65		6.61		1.30

LargeCap Value Fund
Class A		1,000.00		999.22		4.38			1,000.00		1,020.82		4.43		0.87
Class C		1,000.00		995.19		8.55			1,000.00		1,016.64		8.64		1.70
Class P		1,000.00		1,000.00		3.08			1,000.00		1,022.13		3.11		0.61

MidCap Fund
Class A		1,000.00		975.45		4.88			1,000.00		1,020.27		4.99		0.98
Class C		1,000.00		971.92		8.45			1,000.00		1,016.64		8.64		1.70
Class P		1,000.00		976.18		3.54			1,000.00		1,021.63		3.62		0.71

MidCap Value Fund III
Class A		1,000.00		967.91		6.45			1,000.00		1,018.65		6.61		1.30
Class P		1,000.00		969.57		4.12			1,000.00		1,021.02		4.23		0.83

Money Market Fund
Class A		1,000.00		1,000.00		1.11			1,000.00		1,024.10		1.12		0.22
Class C		1,000.00		1,000.00		1.11			1,000.00		1,024.10		1.12		0.22


				SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS, INC.
October 31, 2015 (unaudited)


				Actual							Hypothetical
						Expenses Paid							Expenses Paid
		Beginning		Ending		During Period			Beginning		Ending		During Period
		Account		Account Value		May 1, 2015 to			Account		Account Value		May 1, 2015 to		Annualized
		Value May 1,		October 31,		October 31,			Value May 1,		October 31,		October 31,		Expense
		2015		2015		2015	^(a)		2015		2015		2015	^(a)	Ratio
Principal Capital Appreciation Fund
Class A	$	1,000.00	$	1,004.41	$	4.24		$	1,000.00	$	1,020.97	$	4.28		0.84	%
Class C		1,000.00		1,000.41		8.37			1,000.00		1,016.84		8.44		1.66
Class P		1,000.00		1,005.53		3.08			1,000.00		1,022.13		3.11		0.61

Real Estate Securities Fund
Class A		1,000.00		1,034.47		7.08			1,000.00		1,018.25		7.02		1.38
Class C		1,000.00		1,030.48		10.85			1,000.00		1,014.52		10.76		2.12
Class P		1,000.00		1,036.27		5.18			1,000.00		1,020.11		5.14		1.01

Short-Term Income Fund
Class A		1,000.00		1,001.04		3.38			1,000.00		1,021.83		3.41		0.67
Class C		1,000.00		996.46		7.90			1,000.00		1,017.29		7.98		1.57
Class P		1,000.00		1,001.84		2.57			1,000.00		1,022.63		2.60		0.51

SmallCap Fund
Class A		1,000.00		984.72		6.15			1,000.00		1,019.00		6.26		1.23
Class C		1,000.00		980.05		10.43			1,000.00		1,014.67		10.61		2.09
Class P		1,000.00		985.96		4.76			1,000.00		1,020.42		4.84		0.95

SmallCap Value Fund II
Class A		1,000.00		962.06		7.17			1,000.00		1,017.90		7.38		1.45
Class P		1,000.00		962.93		5.74			1,000.00		1,019.36		5.90		1.16

Tax-Exempt Bond Fund
Class A		1,000.00		1,013.71		4.06			1,000.00		1,021.17		4.08		0.80
Class C		1,000.00		1,009.54		8.10			1,000.00		1,017.14		8.13		1.60
Class P		1,000.00		1,007.82		1.25	^(b)		1,000.00		1,021.83		3.41		0.67

Tax-Exempt Bond Fund
(Excluding Interest Expense and Fees)
Class A		1,000.00		1,013.70		3.96			1,000.00		1,021.22		3.98		0.78
Class C		1,000.00		1,009.50		8.00			1,000.00		1,017.14		8.07		1.58
Class P		1,000.00		1,007.80		1.22	^(b)		1,000.00		1,021.89		3.32		0.65

^(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 (August 24, 2015, to October 31, 2015), multiplied by 68/365 (to reflect the period since inception).

Under Maryland law, a Board of Directors oversees the Fund. The Directors have financial or other relevant experience and meet several times during the year to review contracts, Fund activities and the quality of services provided to the Fund. Each director also has the same position with Principal Variable Contracts Funds, Inc. which is also sponsored by Principal Life Insurance Company. Each director holds office for an indefinite term or until reaching age 72. Directors considered to be “interested persons” as defined in the Investment Company Act of 1940, as amended, as shown below are considered to be interested because of an affiliation with the Manager and Principal Life Insurance Company.

The following directors are considered not to be “interested persons” as defined in the 1940 Act


		Number of	Other
Name,		Portfolios in Fund	Directorships
Position Held with the Fund,	Principal Occupation(s)	Complex Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	120	Durango Herald, Inc;
Director since 2004			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948

Leroy T. Barnes, Jr.	Retired.	120	McClatchy
Director since March 2012			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.; Frontier
1951			Communications, Inc.

Craig Damos	President, The Damos	120	Hardin Construction
Director since 2008	Company. Formerly, CEO, The		Company
Member, Audit Committee	Weitz Company
Member, 15(c) Committee
1954

Elizabeth A. Nickels	Formerly, Executive Director,	120	Charlotte Russ; Follet
Director since September 2015	Herman Miller Foundation;		Corporation; Herman
1962	Formerly President, Herman		Miller, Inc.; Petsmart;
	Miller Healthcare		Spartan Nash;
			Spectrum Health
			Systems
Mark A. Grimmett	Executive Vice President and	120	None
Director since 2004	CFO, Merle Norman Cosmetics,
Member, Nominating and Governance	Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960

Fritz S. Hirsch	CEO, MAM USA	120	Focus Products Group
Director since 2005	Formerly, President, Sassy, Inc.
Member, Operations Committee
Member, 15(c) Committee
1951

Tao Huang	Formerly, Chief Operating	120	Armstrong World
Director since March 2012	Officer, Morningstar, Inc.		Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962

William C. Kimball	Partner, Kimball – Porter	120	Casey’s General Stores,
Director since 1999	Investments L.L.C.		Inc.
Member, Nominating and Governance
Committee
1947

Karen (“Karrie”) McMillan	Managing Director, Patomak	120	None
Director since 2014	Global Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute

The following directors are considered to be “interested persons” as defined in the 1940 Act, as amended, because of an affiliation with the Manager and Principal Life.


		Number of
		Portfolios in Fund	Other
Name,		Complex	Directorships
Position Held with the Fund,	Principal Occupation(s)	Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Michael J. Beer	Executive Vice President, Principal	120	None
Director since 2012	Funds Distributor, Inc. (“PFD”)
President, Chief Executive Officer	Vice President/Mutual Funds and
Member, Executive Committee	Broker Dealer, Principal Life
1961	Insurance Company (“PLIC”)
	Director, Principal Management
	Corporation, (the “Manager”)
	President & Chief Executive Officer,
	the Manager since 2015
	Executive Vice President/ Chief
	Operating Officer, the Manager
	(2008-2015)
	Director, Princor
	President, Princor (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) since 2011
	President, PSS since 2011

Nora M. Everett	Director, Edge Asset Management,	120	None
Director since 2008	Inc. (“Edge”) (2008-2011)
Chairman	Director, Finisterre Capital LLP since
Member, Executive Committee	2011
1959	Director, Origin Asset Management
	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) since 2010
	Chairman, PFD since 2011
	Senior Vice President/Retirement and
	Investor Services, PLIC (2008-2015)
	President/Retirement and Investor
	Services, PLIC since 2015
	Chairman, the Manager since 2011
	President, the Manager (2008-2015)
	Chairman, Princor since 2011
	Chief Executive Officer, Princor
	(2009-2015)
	Chairman, PSS since 2011

Correspondence intended for each Director who is other than an Interested Director may be sent to 711 High Street, Des Moines, IA

Name, Position Held with the Fund, Address, and Year of Birth

Randy L. Bergstrom Assistant Tax Counsel

711 High Street, Des Moines, IA 50392 1955

Tracy Bollin Chief Financial Officer

711 High Street, Des Moines, IA 50392 1970

Principal Occupation(s) During past 5 years

Counsel, Principal Global Investors, LLC (“PGI”)

Counsel, PLIC

Chief Financial Officer, PFA since 2010

Assistant Controller, PFD (2007-2010)

Chief Financial Officer, PFD since 2010

Chief Financial Officer, the Manager since 2010

Financial Controller, the Manager (2008-2010)

Assistant Controller, Princor (2009-2010)

Chief Financial Officer, Princor since 2010

Financial Controller, Princor (2008-2009)

Assistant Controller, PSS (2007-2010)

Chief Financial Officer, PSS since 2010

David J. Brown Chief Compliance Officer

711 High Street, Des Moines, IA 50392 1960

Senior Vice President, PFD

Vice President/Compliance, PLIC

Senior Vice President, the Manager

Senior Vice President, Princor

Senior Vice President, PSS

Teresa M. Button Treasurer

711 High Street, Des Moines, IA 50392 1963

Vice President/Treasurer, Edge since 2011

Vice President/Treasurer, PFA since 2011

Vice President/Treasurer, PFD since 2011

Vice President/Treasurer, PGI since 2011

Vice President/Treasurer, PLIC since 2011

Vice President/Treasurer, the Manager since 2011

Vice President/Treasurer, Post since 2011

Vice President/Treasurer, Principal-REI since 2011

Vice President/Treasurer, Princor since 2011

Vice President/Treasurer, PSS since 2011

Treasurer, Spectrum since 2011

Carolyn F. Kolks Assistant Tax Counsel

711 High Street, Des Moines, IA 50392 1962

Jennifer A. Mills Assistant Counsel

711 High Street, Des Moines, IA 50392 1973

Counsel, PGI

Counsel, PLIC

Counsel, PFD (2009-2013)

Counsel, PLIC

Counsel, the Manager (2009-2013, 2014 - present)

Counsel, Princor (2009-2013)

Counsel, PSS (2009-2013)

Layne A. Rasmussen Vice President and Controller

711 High Street, Des Moines, IA 50392 1958

Greg Reymann Assistant Counsel

711 High Street, Des Moines, IA 50392 1958

Vice President/Controller – Principal Funds, the Manager

Assistant General Counsel, PLIC since 2014

VP, Chief Compliance Officer and Chief Risk Officer, Transamerica Asset

Management, Inc. (“TAM”) (2010-2012)

Assistant General Counsel, Transamerica Asset Management Group (2013-2014)

Vice President/CFTC Principal, TAM (2013-2014)


Name, Position Held with the Fund,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Britney L. Schnathorst	Counsel, PLIC since 2013
Assistant Counsel	Prior thereto, Attorney in Private Practice
711 High Street, Des Moines, IA 50392
1981


Adam U. Shaikh	Counsel, PFD (2006-2013)
Assistant Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392	Counsel, the Manager (2007-2013, 2014 - present)
1972	Counsel, Princor (2007-2013)
	Counsel, PSS (2007-2013)

Dan Westholm	Assistant Vice President/Treasury, PFA since 2013
Assistant Treasurer	Director – Treasury, PFA (2011-2013)
711 High Street, Des Moines, IA 50392	Assistant Vice President/Treasury, PFD since 2013
1966	Director – Treasury, PFD (2011-2013)
	Assistant Vice President/Treasury, PLIC
	Assistant Vice President/Treasury, the Manager
	Assistant Vice President/Treasury, Princor since 2013
	Director – Treasury, Princor (2008-2009, 2011-2013)
	Assistant Vice President/Treasury, PSS

Beth Wilson	Vice President, the Manager (2007-2013)
Vice President and Secretary	Vice President, Princor (2007-2009)
711 High Street, Des Moines, IA 50392
1956

Clint Woods	Associate General Counsel, AEGON USA Investment Management, LLC (2003-
Counsel	2012)
711 High Street, Des Moines, IA 50392	Assistant General Counsel, Assistant Corporate Secretary, Governance Officer,
1961	PLIC since 2013

The 15(c) Committee assists 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 Audit Committee selects the independent auditors for the Fund and oversees the activities of the independent auditors as well as the internal auditors. The committee also receives reports about accounting and financial matters affecting the Fund.

The Executive Committee is selected by the Board. It may exercise all the powers of the Board, with certain exceptions, when the Board is not in session. The Committee must report its actions to the Board.

The Nominating and Governance Committee selects and nominates all candidates who are not “interested persons” of the Fund for election to the Board. The committee also oversees the structure and efficiency of the Board of Directors and the committees the Board establishes.

The Operations Committee oversees the provision of administrative and distribution services to the Funds, communications with the Funds’ shareholders, and provides review and oversight of the Funds’ operations.

Additional information about the Fund is available in the Prospectuses dated March 1, 2015, and the Statement of Additional Information dated March 1, 2015. These documents may be obtained free of charge by writing or telephoning Principal Funds Distributor, Inc., P.O. Box 10423, Des Moines, IA 50306. Telephone 1-800-222-5852.

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 Principal Funds Distributor, Inc., at 1-800-222-5852, or at www.sec.gov.

The Fund files complete schedules of investments with the Securities and Exchange Commission as of January 31 and July 31 of each year on Form N-Q. The Fund’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330.

During the period covered by this report, the Board of Directors of Principal Funds, Inc. (“PFI”) approved (1) the annual review and renewal of the Management Agreement and various subadvisory agreements for all Funds; and (2) a Subadvisory Agreement with Logan Circle Partners L.P. related to the Global Diversified Income Fund.

Annual Review and Renewal of Management Agreement and Subadvisory Agreements

At its September 16, 2015 meeting, the Board performed its annual review and renewal process relating to the Management Agreement and the Subadvisory 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 PFI, as defined in the 1940 Act (the “Independent Directors”), annually to review and to consider the continuation of: (1) the Management Agreement between Principal Management Corporation (the “Manager”) and PFI, on behalf of each of the seventy-nine (79) series of PFI (each series is referred to as a “Fund”) (2) the Subadvisory Agreements between the Manager and each of AllianceBernstein L.P.; American Century Investment Management, Inc.; Barrow Hanley Mewhinney & Strauss, LLC; BlackRock Financial Management, Inc.; Brown Advisory, LLC; Causeway Capital Management LLC.; Clearbridge Investments, LLC; Colonial First State Asset Management (Australia) Limited; Columbus Circle Investors; DDJ Capital Management, LLC; Dimensional Fund Advisors LP; Edge Asset Management, Inc.; Emerald Advisers, Inc.; Goldman Sachs Asset Management, L.P.; Guggenheim Partners Investment Management, LLC; J.P. Morgan Investment Management Inc.; Los Angeles Capital Management and Equity Research, Inc.; Neuberger Berman Fixed Income LLC; Origin Asset Management, LLP, Post Advisory Group, LLC; Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Robert W. Baird & Co. Incorporated; Sawgrass Asset Management, LLC, Spectrum Asset Management, Inc.; Stone Harbor Investment Partners LP; T. Rowe Price Associates, Inc.; Tortoise Capital Advisors, L.L.C.; Vaughan Nelson Investment Management, LP; W. H. Reaves & Co., Inc.; Westwood Management Corp.; and William Blair & Company, L.L.C.; (collectively, the “Subadvisers”). The Management Agreement and the Subadvisory Agreements are collectively referred to as the “Advisory Agreements.”

The Board, including the Independent Directors, considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, including the Independent Directors, reviewed a broad range of information requested for this purpose by the Independent Directors, 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. The Board reviewed the materials provided and concluded that it was provided all information reasonably necessary to evaluate the Advisory Agreements.

The Board considered the nature, quality and extent of the services provided under the Management Agreements, including 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 Agreement 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, other than for the “Core” portions of the Funds implementing the “Core Satellite” structure and the LifeTime Hybrid Funds, the Manager had delegated day-to-day portfolio management responsibility to the Subadvisers. The Board noted that the Manager’s process emphasizes the selection of Principal-affiliated subadvisers that are determined to be qualified under the Manager’s due diligence process, but that the Manager will select an unaffiliated subadviser to manage all of a portion of a Fund’s portfolio when deemed necessary or appropriate based on a consideration of the Fund’s investment mandate and available expertise and resources within the Principal organization. With respect to Funds with unaffiliated Subadvisers, the Board considered the due diligence process developed by the Manager for purposes of selecting a highly qualified unaffiliated subadviser for a Fund and for monitoring and replacing unaffiliated Subadvisers. The Board concluded that this due diligence process was working well. The Board also considered the compliance program established by the Manager 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 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 to the Funds under the Management Agreement were satisfactory.

The Board considered the nature, quality and extent of services provided under each Subadvisory Agreement. The Board considered the reputation, qualifications and background of the Subadviser, investment approach of the Subadviser, 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 Subadvisers’ compliance with investment policies and general legal compliance. In addition, the Board considered the analysis provided under the Manager’s due diligence program, which resulted in the Manager recommending that each Subadvisory Agreement be continued. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Subadvisers to the Funds under the Subadvisory Agreements are satisfactory.

The Board reviewed each Fund’s investment performance over longer-term periods, reviewing both the investment return during the three-year period ended May 31, 2015 and the blended investment return (50%/50%) of the three- and five-year periods ended May 31, 2015, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar. For Funds or Subadvisers that did not have a three-year or five-year performance history, the Board reviewed performance for a one-year or three-year period, respectively, noting that certain Funds had commenced operations recently and, accordingly, no 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 Subadvisers for multi-manager Funds, that had not attained during the relevant period 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. The Board considered the Manager’s due diligence process for evaluating performance applied to all Funds and all Subadvisers, from which they received regular reporting, and, for unaffiliated Subadvisers, 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 Subadvisers at the appropriate time, if necessary.

The Board considered each Fund’s management fee. The Board received information, based on data supplied by Lipper, comparing each Fund’s (1) contractual management fee at current asset levels and at theoretical asset levels, (2) actual (after any fee waivers) management fee at average fiscal-year asset levels, (3) actual non-management fees at average fiscal-year asset levels, and (4) actual total expense ratio (including, as applicable, acquired fund fees and expenses) at average fiscal-year asset levels for Class A shares, where available, to advisory fees and expense ratios of mutual funds in a peer group selected by Lipper, or for one Fund, a custom peer group recommended by the Manager and reviewed by the Board (“Expense Group”) and a broad-based, industry category defined by Lipper (“Expense Universe”). For Funds that did not offer Class A shares or if Class A shares represented less than 5% of the Fund’s total assets, the information provided was based upon Institutional Class shares.

In evaluating the management fees, the Board considered a variety of factors, including the amount of the fees, breakpoints, comparison to fees of peer group funds as well as other funds managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios, profitability and expense caps and fee waivers. For most Funds, actual management fees were within the third quartile or better when compared to their Expense Group. For some Funds, although actual management fees were higher than the third quartile, total net expense ratios were within the third quartile or better.

For each of the SAM Portfolios, the Board considered information from management about the Manager’s unique strategic and tactical asset allocation processes employed in the management of the Fund and determined that the strategy and processes justified management fees higher than those paid by the funds in the Fund’s Expense Group. For each of the SAM Portfolios, with the exception of the SAM Strategic Growth Portfolio, the Board concluded that the Fund met performance expectations. For each of the SAM Portfolios, the Board concluded that the total expense ratio (including the expenses of the underlying funds), with the continuation of the expense caps suggested by management, was within an acceptable range.

The Board also considered that the Manager contractually agreed to continue to waive a portion of its management fee for nine (9) PFI Funds that have implemented the “Core Satellite” structure. The Board also considered the expense caps and fee waivers that would be in place with respect to certain classes of various Funds.

With specific regard to the MidCap Growth Fund III, although the contractual management fee, the actual management fee and the total net expense ratio on the basis of Institutional Class shares are higher than third quartile (85%, 92% and 77%, respectively) for the Expense Group, the Board concluded that the Management Agreement should be renewed, based upon all relevant factors, including the explanation provided by the Manager for the Fund’s performance in the third quartile of its Morningstar peer group for each of the three-year and blended three- and five-year periods ended May 31, 2015 (68% and 69%, respectively) and the tight range of the total expense ratios within the Expense Group.

With specific regard to the Bond & Mortgage Securities Fund, although the contractual management fee, the actual management fee and the total net expense ratio on the basis of Institutional Class shares are higher than third quartile (93%, 99% and 80%, respectively) for the Expense Group, the Board concluded that the Management Agreement should be renewed, based upon all relevant factors, including that the Fund’s performance is in the second quartile for each of the three-year and blended three- and five-year periods ended May 31, 2015 and that its total expense ratio is in the second quartile (33%) when compared to its Expense Universe.

With specific regard to the Bond Market Index Fund, although the contractual management fee, the actual management fee and the total net expense ratio on the basis of Institutional Class shares are higher than third quartile (99%, 99% and 80%, respectively) for the Expense Group, the Board concluded that the Management Agreement should be renewed, based upon all relevant factors, including the explanation provided by the Manager for the lower ranking in the Expense Group (i.e., unusual circumstances of certain funds in the Expense Group), the competitiveness of the Fund’s total expense ratio (69%) when compared to the Expense Universe and that although the ranking of the Fund’s performance in its Morningstar peer group was in the third quartile for each of the three-year and blended three- and five-year periods ended May 31, 2015 (65% and 63%, respectively), the Fund’s performance relative to the target index met expectations for each of the three-year and blended three-and five-year periods ended May 31, 2015.

With specific regard to the Principal LifeTime Strategic Income Fund, although the actual management fee and the total net expense ratio on the basis of Institutional Class shares are higher than third quartile (78% and 78%, respectively) for the Expense Group, the Board concluded that the Management Agreement should be renewed, based upon all relevant factors, including that the Fund’s performance is in the first quartile for each of the three-year and blended three- and five-year periods ended May 31, 2015.

With specific regard to the SAM Strategic Growth Portfolio, although the Fund underperformed its Morningstar peer group ranking in the fourth quartile for each of the three-year and blended three- and five-year periods ended May 31, 2015 (81% and 82%, respectively), the Board noted that the same unique processes were employed for all the SAM Portfolios, which over the range of portfolios over an extended period had provided superior results, and that any particular Fund may compare less well as to a particular group of peer funds at a point in time, in this particular case because of a higher weighting in foreign securities than the funds in the peer group. Based upon all relevant factors, including the Boards’ view that these processes provide value to Fund shareholders over the long term, the Board concluded that the Management Agreement should be renewed.

Considering all factors they deemed relevant, the Board concluded that the management fee schedule for each Fund was reasonable and appropriate in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.

The Board reviewed detailed information regarding revenues the Manager receives under the Management Agreement, as well as the estimated direct and indirect costs the Manager incurs in providing to each Fund the services described in the applicable Advisory Agreements, for the year ended December 31, 2014. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to affiliated Subadvisers (Principal Global Investors, LLC, Principal Real Estate Investors LLC, Columbus Circle Investors, Edge Asset Management Inc., Origin Asset Management LLP, Post Advisory Group LLC and Spectrum Asset Management, Inc.), and the aggregated return on revenue to the Manager and its affiliates. The Board concluded that the management fee for each Fund was reasonable, taking into account the profitability information presented by the Manager.

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 through breakpoints in fees. The Board also noted the new breakpoints being offered by management for three Funds. The Board then reviewed the levels at which breakpoints occur and the amount of the reductions. 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 concluded that the fee schedule for each Fund reflects an appropriate level of sharing of any economies of scale.

The Board noted that the management fees for the LargeCap S&P 500 Index Fund, the MidCap S&P 400 Index Fund, the SmallCap S&P 600 Index Fund, the Principal LifeTime Funds, and the Principal LifeTime Hybrid Funds do not include breakpoints. Although their management fee schedules do not include breakpoints, the Board noted that each of these Funds has a relatively low basis point fee (25 basis points or less) on all Fund assets.

For each Fund the Board considered the subadvisory fees, noting that the Manager compensates each Subadviser from its own management fee, so that shareholders pay only the management fee. The Board also received industry data supplied by Lipper. The Board considered whether there are economies of scale with respect to the subadvisory services provided to each Fund and, if so, whether the subadvisory fees reflect such economies of scale through breakpoints in fees. In addition, in evaluating the subadvisory fees and the factor of profitability, with respect to unaffiliated Subadvisers, the Board considered that the subadvisory fee rate was negotiated at arm’s-length between the Manager and each Subadviser. The Board considered the profitability of the affiliated Subadvisers in conjunction with its review of the profitability of the Manager.

The Board also considered the character and amount of other incidental benefits received by the Manager and its affiliates and each Subadviser from their relationships with the Funds. The Board also considered as a part of this analysis each Subadvisor’s soft dollar practices and brokerage practices. The Board concluded that management and subadvisory fees for each Fund were reasonable in light of these benefits.

Based upon all of the information it considered and the conclusions it reached, the Board determined unanimously 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.

On June 9, 2015, the Board considered for the Global Diversified Income Fund (the “Fund”) the approval of a subadvisory agreement (the “Subadvisory Agreement”) between Principal Management Corporation (the “Manager”) and Logan Circle Partners, L.P. (the “Subadviser”) with respect to a portion of the emerging markets debt investment sleeve of the Fund.

The Board considered the nature, quality and extent of services expected to be provided under the Subadvisory Agreement.

The Board considered the reputation, qualifications and background of the Subadviser, investment approach of the Subadviser, the experience and skills of the Subadviser’s investment personnel who would be responsible for the day-to-day management of the Fund, and the resources made available to such personnel. In addition, the Board considered the Manager’s program for recommending, monitoring and replacing subadvisers and that the Manager recommended the Subadviser based upon that program.

The Board reviewed the historical one-year, three-year, five-year and since-inception (November 30, 2006) performance returns as of March 31, 2015 of the Subadviser in a composite with an investment strategy similar to the proposed strategy for the emerging markets debt investment sleeve of the Fund (gross and net of proposed fees), as compared to the historical performance returns of the current subadviser to the emerging markets debt investment sleeve of the Fund (which will remain a subadviser to a portion of such sleeve) in a composite with an investment strategy similar to the strategy for the investment sleeve of the Fund (one-year, three-year and since inception (March 30, 2012) only) (gross and net of fees) and a relevant benchmark index, and the annual performance of the Subadviser in the same composite for each of the last five calendar years (gross and net of proposed fees), as compared to the other subadviser’s composite (2013 and 2014 only) (gross and net of fees) and the relevant benchmark index. The Board also reviewed the percentile rankings of the historical performance of the Subadviser’s composite (net of proposed fees) and the other subadviser’s composite (net of fees) in a relevant Morningstar category for each of the periods and years referenced above. The Board concluded, based on the information provided, that the historical investment performance record of the Subadviser was satisfactory.

The Board considered the proposed subadvisory fee, noting that the Manager compensates subadvisers from its own management fee so that shareholders pay only the management fee. The Board considered whether there are economies of scale with respect to the subadvisory services to be provided to the Fund under the Subadvisory Agreement. The Board noted that the proposed subadvisory fee schedule includes breakpoints and concluded that the subadvisory fee schedule reflects an appropriate recognition of economies of scale at currently anticipated asset levels. The Board considered the Subadviser’s representation that it does not offer other clients a lower fee for the specific mandate it will be managing for the Fund and the Manager’s statement that it found the proposed subadvisory fee schedule to be fair and competitive. On the basis of the information provided, the Board concluded that the proposed subadvisory fee was reasonable.

The Board also considered the character and amount of other incidental benefits to be received by the Subadviser. The Board noted that the Subadviser does not engage in soft dollar trading. The Board concluded that, on the basis of the information provided, the proposed subadvisory fee was reasonable.

Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Subadvisory Agreement are fair and reasonable and that approval of the Subadvisory Agreement is in the best interests of the Fund.

FEDERAL INCOME TAX INFORMATION
PRINCIPAL FUNDS, INC.
October 31, 2015 (unaudited)

Long Term Capital Gain Dividends. Certain of the Funds distributed long term capital gain dividends during the fiscal year ended October 31, 2015.

Details of designated long term capital gain dividends for federal income tax purposes are shown in the notes to financial statements.

Dividend Received Deduction. For corporate shareholders, the percentages of ordinary income distributions (dividend income and short-term gains, if any) for the year ended October 31, 2015, that qualify for the dividend received deduction are as follows:

Qualified Dividend Income. Certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentages of ordinary income distributions for the fiscal year ended October 31, 2015, taxed at a maximum rate of 15% are as follows:

Foreign Taxes Paid. The following Funds elect under the Internal Revenue Code Section 853 to pass through foreign taxes paid to their shareholders.

The total amounts of foreign taxes passed through to shareholders on a per share basis for the year ended October 31, 2015, are as follows:

This information is given to meet certain requirements of the Internal Revenue Code and should not be used by shareholders for preparing their income tax returns. For tax return preparation purposes, please refer to the information supplied with the 1099-DIV form you will receive from the Fund’s transfer agent.

Principal Funds Distributor, Inc.
711 High Street
Des Moines, IA 50392-6370

Do not use this address for business correspondence.

GLOBAL INVESTMENT MANAGEMENT - ASSET ALLOCATION EXPERTISE - RETIREMENT LEADERSHIP

This annual report is published as general information for the shareholders of Principal Funds. This material is not authorized for distribution unless preceded or accompanied by a current prospectus that includes more information regarding the risk factors, expenses, policies, and objectives of the funds. Investors should read the prospectus carefully before investing. To obtain an additional prospectus, please contact your financial professional or call 800-222-5852.

GLOBAL INVESTMENT MANAGEMENT • ASSET ALLOCATION EXPERTISE • RETIREMENT LEADERSHIP

At Principal Funds, we're honored to be part of your investment strategy. On behalf of everyone at Principal Funds, I thank you for your business.

¹Asset allocation and diversification do not ensure a profit or protect against a loss. Past performance does not guarantee future results.

The Consumer Price Index (CPI) for all items was essentially unchanged over the last 12 months, while the CPI less food and energy increased at 1.9 percent overall over the past 12 months, the highest 12-month change since July 2014.²In addition, the rate of savings from the gains due to the drop in oil prices has fallen and it appears that some “windfall” is being spent on new, larger, more expensive, and less fuel efficient vehicles than would have been the case absent the drop in oil prices. Not only are we experiencing auto sales at an 18.2 million annual rate (the fastest pace in more than 10 years)³, but services and non-durable goods spending has picked up sharply. Further, the Federal Open Market Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate. Real personal consumption expenditures growth over the past five quarters depicts an ongoing consumer spending uptrend, with the second quarter 2015 showing an increase of 3.6 percent.⁴

¹The Federal Reserve
²The Bureau of Labor Statistics
³Bloomberg Business, October 1, 2015
⁴The St. Louis Fed
⁵The European Central Bank

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

The Principal LifeTime Funds invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

Outperformance from active managers was most prominent in the U.S. and non-U.S. equity broad asset classes, and as such aided performance, most notably in later dated funds. The largest contributor to performance from a manager selection standpoint was from the Diversified International Fund (sub-advised by Principal Global Investors, LLC). Within the U.S. equity broad asset class, the Large Cap Value Fund III (sub-advised by Barrow, Hanley, Mewhinney & Strauss, LLC and Westwood Management Corporation) was a significant contributor to performance. An overweight to real assets was a significant detractor from performance as the master limited partnership, commodity, and natural resource stock asset classes were significantly negative. In addition to the asset class experiencing poor absolute performance, the Diversified Real Asset Fund (sub-advised by multiple advisors) also detracted from a manager performance standpoint. The Core Plus Bond Fund (sub-advised by Principal Global Investors, LLC) also detracted from a manager performance standpoint, most notably in near dated funds.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses. Expense limits apply through 2/29/16. Gross and net expense ratios reflect the total annual fund operating expenses of the investment option and its underlying funds. Returns are based on net total investment expense.

* Performance assumes reinvestment of all dividends and capital gains. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

The Principal LifeTime Funds invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

* Performance assumes reinvestment of all dividends and capital gains. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

The Principal LifeTime Funds invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

* Performance assumes reinvestment of all dividends and capital gains. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

The Principal LifeTime Funds invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

* Performance assumes reinvestment of all dividends and capital gains. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

The Principal LifeTime Funds invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

* Performance assumes reinvestment of all dividends and capital gains. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

What contributed to or detracted from Fund performance during the fiscal year?

The Principal LifeTime Funds invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

* Performance assumes reinvestment of all dividends and capital gains. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Portfolio performance during the fiscal year?

The Principal Strategic Asset Management (SAM) Portfolios invest wholly in the Institutional Class shares of the underlying funds. Any specific performance comparisons of the underlying funds correspond to that share class.

Strong security selection in large cap growth equities was the largest contributor to performance. Strong security selection in mid cap value equities contributed. Strong security selection in mid cap growth equities aided results. Strategic overweight to international emerging market equities was the largest detractor from performance, as international emerging market equities lagged U.S. and international developed market equities, partially due to global growth concerns. Security selection in international developed market equities detracted from performance. Strategic and tactical underweight to large cap growth equities, which outperformed large cap value and smaller cap equities, hindered results.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses. Expense limits apply through 2/28/17 for Class P. Gross and net expense ratios reflect the total annual fund operating expenses of the investment option and its underlying funds. Returns are based on net total investment expense.

invest directly in an index. The SAM Balanced Blended Index is composed of 45% Russell 3000 Index, 40% Barclays Aggregate Bond Index, and 15% MSCI EAFE Index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Portfolio performance during the fiscal year?

Strong security selection in large cap growth equities was the largest contributor to performance. Strong security selection in mid cap value equities contributed. Strong security selection in mid cap growth equities aided results. Strategic overweight to international emerging market equities was the largest detractor from performance, as international emerging market equities lagged U.S. and international developed market equities, partially due to global growth concerns. Strategic and tactical overweight to high yield bonds, which underperformed most other fixed income assets, detracted from results. Security selection in international developed market equities hindered performance.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

Where gross and net expenses differ, Principal Management Corporation has contractually agreed to limit the investment option’s expenses. Expense limits apply through 2/29/16 for Classes A and C; 2/28/17 for Class P. Gross and net expense ratios reflect the total annual fund operating expenses of the investment option and its underlying funds. Returns are based on net total investment expense.

invest directly in an index. The SAM Conservative Balanced Blended Index is composed of 60% Barclays Aggregate Bond Index, 30% Russell 3000 Index, and 10% MSCI EAFE Index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Portfolio performance during the fiscal year?

Strong security selection in large cap growth equities was the largest contributor to performance. Strong security selection in mid cap value equities contributed. Strong security selection in mid cap growth equities aided results. Strategic overweight to international emerging market equities was the largest detractor from performance, as international emerging market equities lagged U.S. and international developed market equities, partially due to global growth concerns. Security selection in international developed market equities detracted from performance. Strategic and tactical overweight to master limited partnerships (MLPs), which underperformed, hindered performance.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

invest directly in an index. The SAM Conservative Growth Blended Index is composed of 60% Russell 3000 Index, 20% Barclays Aggregate Bond Index, and 20% MSCI EAFE Index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Portfolio performance during the fiscal year?

Strong security selection in high yield bonds was the largest contributor to performance. Strong security selection in mid cap value equities contributed. Strong security selection in large cap growth equities contributed. Strategic and tactical overweight to high yield bonds, which underperformed most other fixed income assets, was the largest detractor from performance. Strategic overweight to international emerging market equities detracted from performance, as international emerging market equities lagged U.S. and international developed market equities, partially due to global growth concerns. Strategic and tactical overweight to master limited partnerships (MLPs), which underperformed, hindered performance.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

invest directly in an index. The SAM Flexible Income Blended Index is composed of 75% Barclays Aggregate Bond Index, 20% Russell 3000 Index, and 5% MSCI EAFE Index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

What contributed to or detracted from Portfolio performance during the fiscal year?

Strong security selection in large cap growth equities was the largest contributor to performance. Strong security selection in mid cap value equities contributed. Strategic and tactical underweight to international developed market equities contributed, as they underperformed U.S. equities. Strategic overweight to international emerging market equities was the largest detractor from performance, as international emerging market equities lagged U.S. and international developed market equities, partially due to global growth concerns. Security selection in international developed market equities detracted. Security selection in large cap value equities hindered performance.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 5.50%; Class C shares: contingent deferred sales charge of 1% on redemptions made during the first 12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

invest directly in an index. The SAM Strategic Growth Blended Index is composed of 70% Russell 3000 Index, 25% MSCI EAFE Index, and 5% Barclays Aggregate Bond Index.


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015

	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands, except per share amounts		2010 Fund			2020 Fund			2030 Fund
Investment in affiliated Funds--at cost	$	1,286,628		$	5,746,455		$	6,068,751
Assets
Investment in affiliated Funds--at value	$	1,380,620		$	6,242,851		$	6,696,258
Receivables:
Dividends and interest		1,225			3,831			2,484
Expense reimbursement from Manager		4			5			8
Expense reimbursement from Distributor		21			76			88
Fund shares sold		533			2,543			2,484
Investment securities sold		5,008			16,588			21,839
Prepaid directors' expenses		1			9			2
Total Assets		1,387,412			6,265,903			6,723,163
Liabilities
Accrued management and investment advisory fees		35			157			169
Accrued administrative service fees		11			46			43
Accrued distribution fees		85			321			342
Accrued service fees		46			214			205
Accrued transfer agent fees		32			128			161
Accrued professional fees		3			5			4
Accrued other expenses		19			39			50
Payables:
Fund shares redeemed		5,541			19,129			24,322
Investment securities purchased		1,225			3,831			2,484
Total Liabilities		6,997			23,870			27,780
Net Assets Applicable to Outstanding Shares	$	1,380,415		$	6,242,033		$	6,695,383
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,236,443		$	5,323,925		$	5,581,365
Accumulated undistributed (overdistributed) net investment income (loss)		11,440			36,621			24,650
Accumulated undistributed (overdistributed) net realized gain (loss)		38,540			385,091			461,861
Net unrealized appreciation (depreciation) of investments		93,992			496,396			627,507
Total Net Assets	$	1,380,415		$	6,242,033		$	6,695,383
Capital Stock (par value: $.01 per share):
Shares authorized		650,000			1,125,000			1,225,000
Net Asset Value Per Share:
Class A: Net Assets	$	42,365		$	133,985		$	125,826
Shares Issued and Outstanding		3,126			9,411			8,716
Net Asset Value per share	$	13.55		$	14.24		$	14.44
Maximum Offering Price	$	14.08		$	15.07		$	15.28
Class J: Net Assets	$	249,105		$	900,725		$	1,046,222
Shares Issued and Outstanding		18,536			63,867			72,811
Net Asset Value per share	$	13.44	^(a)	$	14.10	^(a)	$	14.37	^(a)
Institutional: Net Assets	$	871,781		$	4,195,249		$	4,549,028
Shares Issued and Outstanding		64,557			295,719			315,352
Net Asset Value per share	$	13.50		$	14.19		$	14.43
R-1: Net Assets	$	12,141		$	46,993		$	41,478
Shares Issued and Outstanding		907			3,347			2,908
Net Asset Value per share	$	13.38		$	14.04		$	14.26
R-2: Net Assets	$	12,072		$	57,059		$	59,122
Shares Issued and Outstanding		902			4,071			4,137
Net Asset Value per share	$	13.39		$	14.02		$	14.29
R-3: Net Assets	$	64,152		$	277,010		$	250,480
Shares Issued and Outstanding		4,802			19,753			17,482
Net Asset Value per share	$	13.36		$	14.02		$	14.33
R-4: Net Assets	$	38,245		$	197,589		$	200,722
Shares Issued and Outstanding		2,854			14,050			13,608
Net Asset Value per share	$	13.40		$	14.06		$	14.75
R-5: Net Assets	$	90,554		$	433,423		$	422,505
Shares Issued and Outstanding		6,743			30,734			29,362
Net Asset Value per share	$	13.43		$	14.10		$	14.39


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015

								Principal LifeTime
	Principal LifeTime				Principal LifeTime			Strategic
Amounts in thousands, except per share amounts		2040 Fund			2050 Fund			Income Fund
Investment in affiliated Funds--at cost	$	3,810,104		$	1,981,214		$	683,307
Assets
Investment in affiliated Funds--at value	$	4,412,323		$	2,277,437		$	720,081
Receivables:
Dividends and interest		944			351			802
Expense reimbursement from Manager		9			12			1
Expense reimbursement from Distributor		51			15			7
Fund shares sold		2,845			2,419			427
Investment securities sold		10,000			4,398			2,303
Prepaid directors' expenses		2			1			–
Total Assets		4,426,174			2,284,633			723,621
Liabilities
Accrued management and investment advisory fees		111			57			17
Accrued administrative service fees		28			15			5
Accrued distribution fees		209			85			35
Accrued service fees		137			74			22
Accrued transfer agent fees		134			85			18
Accrued professional fees		4			3			3
Accrued other expenses		49			36			16
Payables:
Fund shares redeemed		12,828			6,815			2,730
Investment securities purchased		944			351			802
Total Liabilities		14,444			7,521			3,648
Net Assets Applicable to Outstanding Shares	$	4,411,730		$	2,277,112		$	719,973
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	3,592,734		$	1,881,868		$	678,944
Accumulated undistributed (overdistributed) net investment income (loss)		6,753			1,907			7,740
Accumulated undistributed (overdistributed) net realized gain (loss)		210,024			97,114			(3,485	)
Net unrealized appreciation (depreciation) of investments		602,219			296,223			36,774
Total Net Assets	$	4,411,730		$	2,277,112		$	719,973
Capital Stock (par value: $.01 per share):
Shares authorized		1,050,000			825,000			750,000
Net Asset Value Per Share:
Class A: Net Assets	$	91,391		$	68,799		$	29,781
Shares Issued and Outstanding		6,232			4,742			2,463
Net Asset Value per share	$	14.67		$	14.51		$	12.09
Maximum Offering Price	$	15.52		$	15.35		$	12.56
Class J: Net Assets	$	609,315		$	183,490		$	81,357
Shares Issued and Outstanding		41,215			13,011			6,801
Net Asset Value per share	$	14.78	^(a)	$	14.10	^(a)	$	11.96	^(a)
Institutional: Net Assets	$	3,056,094		$	1,671,172		$	505,216
Shares Issued and Outstanding		204,945			115,486			41,961
Net Asset Value per share	$	14.91		$	14.47		$	12.04
R-1: Net Assets	$	28,622		$	17,417		$	5,467
Shares Issued and Outstanding		1,946			1,220			457
Net Asset Value per share	$	14.71		$	14.27		$	11.97
R-2: Net Assets	$	37,545		$	23,189		$	7,320
Shares Issued and Outstanding		2,551			1,625			611
Net Asset Value per share	$	14.72		$	14.27		$	11.98
R-3: Net Assets	$	158,468		$	76,536		$	29,146
Shares Issued and Outstanding		10,772			5,353			2,449
Net Asset Value per share	$	14.71		$	14.30		$	11.90
R-4: Net Assets	$	134,693		$	66,438		$	16,252
Shares Issued and Outstanding		9,136			4,624			1,361
Net Asset Value per share	$	14.74		$	14.37		$	11.94
R-5: Net Assets	$	295,602		$	170,071		$	45,434
Shares Issued and Outstanding		19,935			11,813			3,783
Net Asset Value per share	$	14.83		$	14.40		$	12.01


	STATEMENTS OF ASSETS AND LIABILITIES
	PRINCIPAL FUNDS, INC.
	October 31, 2015

		SAM Balanced				SAM Conservative			SAM Conservative
Amounts in thousands, except per share amounts		Portfolio				Balanced Portfolio			Growth Portfolio
Investment in affiliated Funds--at cost		$	4,103,850		$	1,513,764		$	2,610,583
Assets
Investment in affiliated Funds--at value		$	4,867,236		$	1,678,343		$	3,186,817
Receivables:
Dividends and interest			4,503			2,575			907
Expense reimbursement from Manager			7			33			7
Expense reimbursement from Distributor			83			45			42
Fund shares sold			2,334			1,002			1,081
Investment securities sold			5,965			676			2,809
Prepaid directors' expenses			1			–			1
	Total Assets		4,880,129			1,682,674			3,191,664
Liabilities
Accrued management and investment advisory fees			1,268			438			828
Accrued administrative service fees			7			3			4
Accrued distribution fees			1,316			451			890
Accrued service fees			41			15			22
Accrued transfer agent fees			517			174			439
Accrued professional fees			14			13			14
Accrued other expenses			127			47			118
Payables:
Fund shares redeemed			8,984			1,544			4,010
Investment securities purchased			4,503			2,574			907
	Total Liabilities		16,777			5,259			7,232
Net Assets Applicable to Outstanding Shares		$	4,863,352		$	1,677,415		$	3,184,432
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	3,866,784		$	1,459,892		$	2,351,669
Accumulated undistributed (overdistributed) net investment income (loss)			–			1,388			1,202
Accumulated undistributed (overdistributed) net realized gain (loss)			233,182			51,556			255,327
Net unrealized appreciation (depreciation) of investments			763,386			164,579			576,234
	Total Net Assets	$	4,863,352		$	1,677,415		$	3,184,432
Capital Stock (par value: $.01 per share):
Shares authorized			1,925,000			1,725,000			1,925,000
Net Asset Value Per Share:
Class A: Net Assets	$		2,124,905		$	512,264		$	1,506,074
Shares Issued and Outstanding			133,894			42,536			82,928
Net Asset Value per share	$		15.87		$	12.04		$	18.16
Maximum Offering Price	$		16.79		$	12.74		$	19.22
Class C: Net Assets	$		762,424		$	264,904		$	549,093
Shares Issued and Outstanding			48,636			22,205			32,122
Net Asset Value per share	$		15.68	^(a)	$	11.93	^(a)	$	17.09	^(a)
Class J: Net Assets	$		994,998		$	538,078		$	496,991
Shares Issued and Outstanding			64,459			45,189			28,142
Net Asset Value per share	$		15.44	^(a)	$	11.91	^(a)	$	17.66	^(a)
Class P: Net Assets	$		3,811		$	1,889		$	2,877
Shares Issued and Outstanding			243			158			161
Net Asset Value per share	$		15.66		$	11.94		$	17.87
Institutional: Net Assets	$		782,696		$	290,780		$	523,817
Shares Issued and Outstanding			49,971			24,349			29,312
Net Asset Value per share	$		15.66		$	11.94		$	17.87
R-1: Net Assets	$		3,689		$	2,927		$	3,158
Shares Issued and Outstanding			236			246			179
Net Asset Value per share	$		15.63		$	11.90		$	17.56
R-2: Net Assets	$		5,570		$	1,532		$	5,383
Shares Issued and Outstanding			357			128			306
Net Asset Value per share	$		15.59		$	11.97		$	17.57
R-3: Net Assets	$		68,091		$	18,301		$	29,621
Shares Issued and Outstanding			4,361			1,535			1,681
Net Asset Value per share	$		15.61		$	11.92		$	17.62
R-4: Net Assets	$		40,322		$	18,067		$	20,164
Shares Issued and Outstanding			2,578			1,514			1,135
Net Asset Value per share	$		15.64		$	11.93		$	17.77
R-5: Net Assets	$		76,846		$	28,673		$	47,254
Shares Issued and Outstanding			4,911			2,403			2,663
Net Asset Value per share	$		15.65		$	11.93		$	17.74


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
October 31, 2015

		SAM Flexible			SAM Strategic
Amounts in thousands, except per share amounts	Income Portfolio				Growth Portfolio
Investment in affiliated Funds--at cost	$	2,145,701		$	1,586,558
Assets
Investment in affiliated Funds--at value	$	2,256,913		$	1,933,739
Receivables:
Dividends and interest		4,635			–
Expense reimbursement from Manager		7			7
Expense reimbursement from Distributor		71			23
Fund shares sold		6,592			563
Investment securities sold		1,338			1,221
Prepaid directors' expenses		–			1
Total Assets		2,269,556			1,935,554
Liabilities
Accrued management and investment advisory fees		589			501
Accrued administrative service fees		1			3
Accrued distribution fees		653			546
Accrued service fees		8			13
Accrued transfer agent fees		187			335
Accrued professional fees		14			14
Accrued other expenses		65			97
Payables:
Dividends payable		3,763			–
Fund shares redeemed		4,174			1,861
Investment securities purchased		4,636			–
Total Liabilities		14,090			3,370
Net Assets Applicable to Outstanding Shares	$	2,255,466		$	1,932,184
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	2,102,093		$	1,386,263
Accumulated undistributed (overdistributed) net investment income (loss)		1,092			5,580
Accumulated undistributed (overdistributed) net realized gain (loss)		41,069			193,160
Net unrealized appreciation (depreciation) of investments		111,212			347,181
Total Net Assets	$	2,255,466		$	1,932,184
Capital Stock (par value: $.01 per share):
Shares authorized		1,825,000			2,125,000
Net Asset Value Per Share:
Class A: Net Assets	$	840,440		$	996,126
Shares Issued and Outstanding		68,842			48,354
Net Asset Value per share	$	12.21		$	20.60
Maximum Offering Price	$	12.69		$	21.80
Class C: Net Assets	$	347,647		$	326,391
Shares Issued and Outstanding		28,737			17,077
Net Asset Value per share	$	12.10	^(a)	$	19.11	^(a)
Class J: Net Assets	$	849,016		$	278,150
Shares Issued and Outstanding		70,075			13,863
Net Asset Value per share	$	12.12	^(a)	$	20.06	^(a)
Class P: Net Assets	$	4,635		$	1,366
Shares Issued and Outstanding		381			67
Net Asset Value per share	$	12.17		$	20.25
Institutional: Net Assets	$	177,423		$	267,751
Shares Issued and Outstanding		14,576			13,214
Net Asset Value per share	$	12.17		$	20.26
R-1: Net Assets	$	676		$	3,151
Shares Issued and Outstanding		56			158
Net Asset Value per share	$	12.13		$	19.91
R-2: Net Assets	$	839		$	2,830
Shares Issued and Outstanding		69			142
Net Asset Value per share	$	12.16		$	19.96
R-3: Net Assets	$	10,070		$	17,993
Shares Issued and Outstanding		829			900
Net Asset Value per share	$	12.15		$	20.00
R-4: Net Assets	$	7,849		$	14,237
Shares Issued and Outstanding		646			707
Net Asset Value per share	$	12.16		$	20.12
R-5: Net Assets	$	16,871		$	24,189
Shares Issued and Outstanding		1,388			1,204
Net Asset Value per share	$	12.15		$	20.09


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015


	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands	2010 Fund				2020 Fund^(a)			2030 Fund^(a)
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	35,498		$	179,394		$	189,312
Total Income		35,498			179,394			189,312
Expenses:
Management and investment advisory fees		453			1,955			2,041
Distribution fees - Class A		108			337			310
Distribution fees - Class B		N/A			10			12
Distribution fees - Class J		638			2,248			2,599
Distribution fees - R-1		48			180			161
Distribution fees - R-2		41			201			197
Distribution fees - R-3		173			741			659
Distribution fees - R-4		47			220			213
Administrative service fees - R-1		38			144			128
Administrative service fees - R-2		28			134			131
Administrative service fees - R-3		49			208			185
Administrative service fees - R-4		14			66			64
Administrative service fees - R-5		10			47			46
Registration fees - Class A		14			19			21
Registration fees - Class B		N/A			2			1
Registration fees - Class J		19			29			35
Registration fees - Institutional		18			26			28
Service fees - R-1		34			129			115
Service fees - R-2		35			167			164
Service fees - R-3		174			741			660
Service fees - R-4		117			551			532
Service fees - R-5		258			1,184			1,142
Shareholder reports - Class A		3			18			21
Shareholder reports - Class J		12			42			61
Shareholder reports - Institutional		1			3			4
Transfer agent fees - Class A		54			161			169
Transfer agent fees - Class B		N/A			3			4
Transfer agent fees - Class J		112			421			611
Transfer agent fees - Institutional		9			53			49
Directors' expenses		29			115			127
Professional fees		72			77			77
Other expenses		20			77			77
Total Gross Expenses		2,628			10,309			10,644
Less: Reimbursement from Manager - Class A		19			29			56
Less: Reimbursement from Manager - Class B		N/A			4			4
Less: Reimbursement from Distributor - Class J		74			264			305
Total Net Expenses		2,535			10,012			10,279
Net Investment Income (Loss)		32,963			169,382			179,033

Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Investment transactions in affiliated Funds		69,719			279,156			278,358
Capital gain distribution received from affiliated Funds		25,095			154,157			212,693
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(118,596	)		(551,635	)		(597,161	)
Net Realized and Unrealized Gain (Loss) on Investments		(23,782	)		(118,322	)		(106,110	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	9,181		$	51,060		$	72,923


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015


								Principal LifeTime
	Principal LifeTime				Principal LifeTime			Strategic
Amounts in thousands	2040 Fund^(a)				2050 Fund^(a)			Income Fund^(a)
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	120,989		$	61,112		$	17,387
Total Income		120,989			61,112			17,387
Expenses:
Management and investment advisory fees		1,329			672			230
Distribution fees - Class A		221			164			76
Distribution fees - Class B		10			3			1
Distribution fees - Class J		1,495			437			202
Distribution fees - R-1		113			64			23
Distribution fees - R-2		131			78			25
Distribution fees - R-3		410			194			79
Distribution fees - R-4		141			67			19
Administrative service fees - R-1		91			52			18
Administrative service fees - R-2		87			52			16
Administrative service fees - R-3		115			54			22
Administrative service fees - R-4		42			20			6
Administrative service fees - R-5		31			18			5
Registration fees - Class A		19			15			11
Registration fees - Class B		1			6			6
Registration fees - Class J		34			22			16
Registration fees - Institutional		28			26			17
Service fees - R-1		81			46			16
Service fees - R-2		109			65			21
Service fees - R-3		410			194			79
Service fees - R-4		352			167			46
Service fees - R-5		773			445			121
Shareholder reports - Class A		20			17			3
Shareholder reports - Class J		49			25			7
Shareholder reports - Institutional		4			6			1
Transfer agent fees - Class A		144			125			45
Transfer agent fees - Class B		4			3			2
Transfer agent fees - Class J		513			328			59
Transfer agent fees - Institutional		38			21			6
Directors' expenses		83			43			16
Professional fees		74			72			72
Other expenses		51			26			11
Total Gross Expenses		7,003			3,527			1,277
Less: Reimbursement from Manager - Class A		73			78			24
Less: Reimbursement from Manager - Class B		4			8			8
Less: Reimbursement from Distributor - Class J		176			52			24
Total Net Expenses		6,750			3,389			1,221
Net Investment Income (Loss)		114,239			57,723			16,166

Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Investment transactions in affiliated Funds		62,860			16,973			22,669
Capital gain distribution received from affiliated Funds		157,700			82,879			6,914
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(277,215	)		(127,882	)		(43,118	)
Net Realized and Unrealized Gain (Loss) on Investments		(56,655	)		(28,030	)		(13,535	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	57,584		$	29,693		$	2,631


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015


					SAM Conservative
	SAM Balanced				Balanced			SAM Conservative
Amounts in thousands	Portfolio^(a),(b)				Portfolio^(a),(b)			Growth Portfolio^(a),(b)
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	126,851		$	47,092		$	74,901
Total Income		126,851			47,092			74,901
Expenses:
Management and investment advisory fees		15,077			5,119			9,984
Distribution fees - Class A		5,353			1,272			3,825
Distribution fees - Class B		231			40			174
Distribution fees - Class C		7,571			2,561			5,584
Distribution fees - Class J		2,508			1,346			1,261
Distribution fees - R-1		15			10			14
Distribution fees - R-2		24			7			22
Distribution fees - R-3		162			48			70
Distribution fees - R-4		49			20			23
Administrative service fees - R-1		12			8			11
Administrative service fees - R-2		16			5			15
Administrative service fees - R-3		45			13			20
Administrative service fees - R-4		15			6			7
Administrative service fees - R-5		11			4			8
Registration fees - Class A		28			25			27
Registration fees - Class B		4			3			–
Registration fees - Class C		21			18			18
Registration fees - Class J		29			26			24
Registration fees - Class P		15			15			15
Registration fees - Institutional		21			20			19
Service fees - R-1		11			8			10
Service fees - R-2		19			6			19
Service fees - R-3		162			47			70
Service fees - R-4		122			50			57
Service fees - R-5		279			93			203
Shareholder reports - Class A		201			44			167
Shareholder reports - Class C		67			21			54
Shareholder reports - Class J		39			18			21
Transfer agent fees - Class A		1,674			390			1,278
Transfer agent fees - Class B		34			8			34
Transfer agent fees - Class C		549			185			440
Transfer agent fees - Class J		385			213			242
Transfer agent fees - Institutional		6			2			3
Directors' expenses		87			31			58
Professional fees		26			23			25
Other expenses		56			21			39
Total Gross Expenses		34,924			11,726			23,841
Less: Reimbursement from Manager - Class A		–			99			–
Less: Reimbursement from Manager - Class B		–			8			–
Less: Reimbursement from Manager - Class C		–			42			–
Less: Reimbursement from Manager - Class P		15			15			15
Less: Reimbursement from Distributor - Class J		293			158			147
Total Net Expenses		34,616			11,404			23,679
Net Investment Income (Loss)		92,235			35,688			51,222

Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Investment transactions in affiliated Funds		196,528			39,054			202,119
Capital gain distribution received from affiliated Funds		109,644			27,264			95,516
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(347,591	)		(88,490	)		(316,879	)
Net Realized and Unrealized Gain (Loss) on Investments		(41,419	)		(22,172	)		(19,244	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	50,816		$	13,516		$	31,978


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended October 31, 2015

	SAM Flexible				SAM Strategic
Amounts in thousands	Income Portfolio^(a),(b)				Growth Portfolio^(a),(b)
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	71,174		$	50,075
Total Income		71,174			50,075
Expenses:
Management and investment advisory fees		6,652			6,105
Distribution fees - Class A		2,071			2,545
Distribution fees - Class B		50			136
Distribution fees - Class C		3,330			3,334
Distribution fees - Class J		1,983			713
Distribution fees - R-1		3			12
Distribution fees - R-2		3			13
Distribution fees - R-3		27			44
Distribution fees - R-4		10			18
Administrative service fees - R-1		2			10
Administrative service fees - R-2		2			8
Administrative service fees - R-3		8			12
Administrative service fees - R-4		3			5
Administrative service fees - R-5		2			4
Registration fees - Class A		35			23
Registration fees - Class B		3			4
Registration fees - Class C		24			15
Registration fees - Class J		54			18
Registration fees - Class P		15			15
Registration fees - Institutional		17			15
Service fees - R-1		2			9
Service fees - R-2		2			10
Service fees - R-3		27			44
Service fees - R-4		25			44
Service fees - R-5		52			89
Shareholder reports - Class A		51			139
Shareholder reports - Class C		27			41
Shareholder reports - Class J		25			15
Transfer agent fees - Class A		494			999
Transfer agent fees - Class B		8			24
Transfer agent fees - Class C		233			321
Transfer agent fees - Class J		349			169
Transfer agent fees - Institutional		3			2
Directors' expenses		40			36
Professional fees		24			23
Other expenses		25			25
Total Gross Expenses		15,681			15,039
Less: Reimbursement from Manager - Class P		15			15
Less: Reimbursement from Distributor - Class J		240			82
Total Net Expenses		15,426			14,942
Net Investment Income (Loss)		55,748			35,133

Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Investment transactions in affiliated Funds		36,110			136,795
Capital gain distribution received from affiliated Funds		20,488			88,393
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(111,997	)		(242,500	)
Net Realized and Unrealized Gain (Loss) on Investments		(55,399	)		(17,312	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	349		$	17,821


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																							Principal LifeTime 2010 Fund
																							Year Ended				Year Ended
																							October 31, 2015				October 31, 2014
Operations
Net investment income (loss)																							$		32,963		$	31,882
Net realized gain (loss) on investments																									94,814			53,135
Change in unrealized appreciation/depreciation of investments																									(118,596	)		18,471
				Net Increase (Decrease) in Net Assets Resulting from Operations																					9,181			103,488

Dividends and Distributions to Shareholders
From net investment income																									(32,009	)		(31,301	)
														Total Dividends and Distributions											(32,009	)		(31,301	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																									(264,638	)		(71,997	)
										Total Increase (Decrease) in Net Assets															(287,466	)		190

Net Assets
Beginning of period																									1,667,881			1,667,691
End of period (including undistributed net investment income as set forth below)																							$		1,380,415		$	1,667,881
Undistributed (overdistributed) net investment income (loss)																							$		11,440		$	10,486

		Class A		Class J			Institutional				R-1		R -2			R -3			R -4			R -5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	5,419	$	31,191		$	54,824		$	972		$		1,549	$		10,014	$		7,063	$		18,368
Reinvested		765		4,865			21,810			184				189			1,159			909			2,116
Redeemed		(6,033	)	(38,386	)		(287,101	)		(3,826		)		(5,198	)		(20,673	)		(28,275	)		(36,543	)
Net Increase (Decrease)	$	151	$	(2,330)			$ (210,467) $			(2,670		) $		(3,460	) $		(9,500)			$ (20,303)			$ (16,059)
Shares:
Sold		394		2,297			4,027			71				114			742			523			1,358
Reinvested		57		363			1,623			14				14			87			68			158
Redeemed		(441	)	(2,833	)		(21,078	)		(282		)		(385	)		(1,532	)		(2,093	)		(2,698	)
Net Increase (Decrease)		10		(173	)		(15,428	)		(197		)		(257	)		(703	)		(1,502	)		(1,182	)
Year Ended October 31, 2014
Dollars:
Sold	$	6,707	$	44,302		$	97,459		$	1,096		$		1,800	$		18,454	$		7,929	$		23,966
Reinvested		725		4,074			21,842			196				246			1,143			1,121			1,925
Redeemed		(8,412	)	(39,112	)		(162,872	)		(5,421		)		(7,869	)		(24,466	)		(20,904	)		(35,926	)
Net Increase (Decrease)	$	(980	) $	9,264		$	(43,571	)	$	(4,129		) $		(5,823	) $		(4,869)			$ (11,854)			$ (10,035)
Shares:
Sold		501		3,319			7,226			82				136			1,395			599			1,792
Reinvested		55		312			1,668			15				19			88			86			148
Redeemed		(625	)	(2,936	)		(12,150	)		(409		)		(593	)		(1,846	)		(1,570	)		(2,685	)
Net Increase (Decrease)		(69	)	695			(3,256	)		(312		)		(438	)		(363	)		(885	)		(745	)

Distributions:
Year Ended October 31, 2015
From net investment income $		(770	) $	(4,872)			$ (21,810)		$	(184		) $		(189	) $		(1,159	) $		(909	) $		(2,116	)
From net realized gain on
investments		–		–			–			–				–			–			–			–
Total Dividends and Distributions $		(770	) $	(4,872)			$ (21,810)		$	(184		) $		(189	) $		(1,159	) $		(909	) $		(2,116	)
Year Ended October 31, 2014
From net investment income $		(729	) $	(4,077)			$ (21,864)		$	(196		) $		(246	) $		(1,143	) $		(1,121	) $		(1,925	)
From net realized gain on
investments		–		–			–			–				–			–			–			–
Total Dividends and Distributions $		(729	) $	(4,077)			$ (21,864)		$	(196		) $		(246	) $		(1,143	) $		(1,121	) $		(1,925	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																									Principal LifeTime 2020 Fund
																									Year Ended							Year Ended
																									October 31, 2015							October 31, 2014
Operations
Net investment income (loss)																									$		169,382					$	123,220
Net realized gain (loss) on investments																											433,313						225,769
Change in unrealized appreciation/depreciation of investments																											(551,635				)		144,603
						Net Increase (Decrease) in Net Assets Resulting from Operations																								51,060			493,592

Dividends and Distributions to Shareholders
From net investment income																											(155,589				)		(118,013	)
From net realized gain on investments																											(224,960				)		(65,974	)
														Total Dividends and Distributions													(380,549				)		(183,987	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																											(350,319				)		227,848
											Total Increase (Decrease) in Net Assets																(679,808				)		537,453

Net Assets
Beginning of period																											6,921,841						6,384,388
End of period (including undistributed net investment income as set forth below)																									$		6,242,033					$	6,921,841
Undistributed (overdistributed) net investment income (loss)																									$					36,621		$	22,828

		Class A				Class B^(a)		Class J			Institutional			R-1		R -2			R -3					R -4					R -5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	22,395		$		20		$ 141,417		$	326,478		$	5,259	$		8,088	$		40,163			$		36,897			$		79,201
Reinvested		6,852				145		50,436			258,319			2,764			3,743			16,679					13,500					27,767
Redeemed		(16,872	)			(3,404	)	(125,156	)		(912,935	)		(11,564	)		(27,312	)		(81,218	)				(90,050	)				(121,931	)
Net Increase (Decrease)	$	12,375		$		(3,239)	$	66,697		$(328,138) $				(3,541)			$ (15,481)			$ (24,376)					$ (39,653)					$ (14,963)
Shares:
Sold		1,551				1		9,860			22,699			365			565			2,818					2,561					5,520
Reinvested		480				10		3,570			18,196			196			267			1,186					958					1,966
Redeemed		(1,171	)			(229	)	(8,755	)		(62,626	)		(812	)		(1,927	)		(5,660	)				(6,321	)				(8,546	)
Net Increase (Decrease)		860				(218	)	4,675			(21,731	)		(251	)		(1,095	)		(1,656	)				(2,802	)				(1,060	)
Year Ended October 31, 2014
Dollars:
Sold	$	24,600		$		56 $ 138,349				$	365,766		$	5,223	$		10,009	$		52,681			$		33,947			$		95,283
Reinvested		3,114				58		21,430			129,850			1,165			1,739			7,295					7,117					12,001
Redeemed		(23,421	)			(1,122	)	(101,988	)		(312,889	)		(13,581	)		(17,777	)		(48,826	)				(66,226	)				(96,005	)
Net Increase (Decrease)	$	4,293		$		(1,008)	$	57,791		$	182,727		$	(7,193)	$		(6,029)	$		11,150		$	(25,162) $							11,279
Shares:
Sold		1,689				4		9,576			25,107			363			695			3,663					2,346					6,582
Reinvested		218				4		1,513			9,131			82			123			517					504					847
Redeemed		(1,616	)			(77	)	(7,054	)		(21,498	)		(943	)		(1,240	)		(3,392	)				(4,617	)				(6,599	)
Net Increase (Decrease)		291				(69	)	4,035			12,740			(498	)		(422	)		788					(1,767	)				830

Distributions:
Year Ended October 31, 2015
From net investment income $		(2,752) $				(38)		$(19,779)			$ (108,767)			(887)	$		(1,242)	$		(6,010) $					(4,932)					$ (11,182)
From net realized gain on
investments		(4,417	)			(107	)	(30,681	)		(149,553	)		(1,877	)		(2,503	)		(10,669)					(8,568)					(16,585	)
Total Dividends and Distributions $		(7,169) $				(145)		$ (50,460)			$ (258,320) $			(2,764)	$		(3,745)			$ (16,679)					$ (13,500)					$ (27,767)
Year Ended October 31, 2014
From net investment income $		(1,908) $				(19)		$(13,256)			$ (85,225)		$	(573	) $		(939)	$		(4,230) $					(4,347) $					(7,516	)
From net realized gain on
investments		(1,219	)			(39	)	(8,179	)		(44,824	)		(592	)		(801	)		(3,065)					(2,770)					(4,485	)
Total Dividends and Distributions $		(3,127)			$	(58)		$(21,435)			$ (130,049) $			(1,165)	$		(1,740)	$		(7,295) $					(7,117) $ (12,001)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																								Principal LifeTime 2030 Fund
																								Year Ended								Year Ended
																								October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																								$		179,033						$	118,958
Net realized gain (loss) on investments																										491,051							256,071
Change in unrealized appreciation/depreciation of investments																										(597,161					)		166,659
							Net Increase (Decrease) in Net Assets Resulting from Operations																						72,923				541,688

Dividends and Distributions to Shareholders
From net investment income																										(169,600					)		(116,319	)
From net realized gain on investments																										(256,037					)		(82,514	)
															Total Dividends and Distributions											(425,637					)		(198,833	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										111,425							368,408
												Total Increase (Decrease) in Net Assets														(241,289					)		711,263

Net Assets
Beginning of period																										6,936,672							6,225,409
End of period (including undistributed net investment income as set forth below)																								$		6,695,383						$	6,936,672
Undistributed (overdistributed) net investment income (loss)																								$					24,650			$	15,217

		Class A					Class B^(a)		Class J			Institutional			R-1		R -2			R -3			R -4					R -5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	23,703		$			11$		160,804		$	457,116		$	5,798	$		8,384	$		37,800	$		37,797 $					85,972
Reinvested		6,976					197		62,802			289,917			2,667			3,987			16,254			14,075					28,497
Redeemed		(15,060	)				(3,886	)	(125,239	)		(695,569	)		(10,662	)		(22,337	)		(66,113	)		(82,351	)				(110,115		)
Net Increase (Decrease)	$	15,619		$			(3,678	)$	98,367		$	51,464		$	(2,197	) $		(9,966)			$ (12,059)			$ (30,479)					$4,354
Shares:
Sold		1,612					1		11,006			31,240			396			575			2,602			2,505					5,871
Reinvested		484					13		4,375			20,141			187			279			1,135			956					1,983
Redeemed		(1,023	)				(259	)	(8,596	)		(47,004	)		(743	)		(1,541	)		(4,514	)		(5,536	)				(7,573		)
Net Increase (Decrease)		1,073					(245	)	6,785			4,377			(160	)		(687	)		(777	)		(2,075	)				281
Year Ended October 31, 2014
Dollars:
Sold	$	23,109		$			29 $ 159,016				$	411,513		$	5,317	$		10,863	$		36,968	$		38,488			$		78,934
Reinvested		3,119					75		26,421			138,868			1,116			1,907			7,360			7,168					12,515
Redeemed		(20,370	)				(556	)	(100,491	)		(248,398	)		(9,787	)		(19,710	)		(45,891	)		(59,943	)				(89,232		)
Net Increase (Decrease)	$	5,858		$			(452	)$	84,946		$	301,983		$	(3,354	) $		(6,940	) $		(1,563)			$ (14,287) $					2,217
Shares:
Sold		1,566					2		10,801			27,856			363			739			2,519			2,535					5,371
Reinvested		215					5		1,835			9,618			78			133			512			486					868
Redeemed		(1,387	)				(37	)	(6,824	)		(16,801	)		(671	)		(1,348	)		(3,126	)		(4,027	)				(6,016		)
Net Increase (Decrease)		394					(30	)	5,812			20,673			(230	)		(476	)		(95	)		(1,006	)				223

Distributions:
Year Ended October 31, 2015
From net investment income $		(2,707)			$		(56)		$ (24,003)			$ (118,734) $			(860	) $		(1,303	) $		(5,737	) $		(4,955)					$ (11,245)
From net realized gain on
investments		(4,519	)				(143	)	(38,807	)		(171,183	)		(1,807	)		(2,689	)		(10,517	)		(9,120	)				(17,252		)
Total Dividends and Distributions $		(7,226)			$		(199)		$ (62,810)			$ (289,917) $			(2,667	) $		(3,992)			$ (16,254)			$ (14,075)					$ (28,497)
Year Ended October 31, 2014
From net investment income $		(1,728)			$	(24)			$(14,799)			$ (83,448)		$	(489	) $		(911	) $		(3,842	) $		(3,955) $					(7,123		)
From net realized gain on
investments		(1,398	)				(51	)	(11,625	)		(55,692	)		(627	)		(998	)		(3,518	)		(3,213	)				(5,392		)
Total Dividends and Distributions $		(3,126)			$	(75)			$(26,424)			$ (139,140) $			(1,116	) $		(1,909	) $		(7,360	) $		(7,168)						$ (12,515)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																										Principal LifeTime 2040 Fund
																										Year Ended							Year Ended
																										October 31, 2015							October 31, 2014
Operations
Net investment income (loss)																										$		114,239					$	71,361
Net realized gain (loss) on investments																												220,560						172,534
Change in unrealized appreciation/depreciation of investments																												(277,215				)		126,094
							Net Increase (Decrease) in Net Assets Resulting from Operations																								57,584			369,989

Dividends and Distributions to Shareholders
From net investment income																												(113,278				)		(70,619	)
From net realized gain on investments																												(172,816				)		(96,482	)
															Total Dividends and Distributions													(286,094				)		(167,101	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												174,124						331,571
												Total Increase (Decrease) in Net Assets																			(54,386	)		534,459

Net Assets
Beginning of period																												4,466,116						3,931,657
End of period (including undistributed net investment income as set forth below)																										$		4,411,730					$	4,466,116
Undistributed (overdistributed) net investment income (loss)																										$					6,753		$	5,792

		Class A					Class B^(a)		Class J			Institutional			R-1		R -2			R -3					R -4					R -5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	17,457		$		–			$107,726		$	339,995		$	3,658	$		6,120	$		28,503		$			33,432			$		63,728
Reinvested		5,327					176		37,083			198,779			2,018			2,930			10,433					9,678					19,569
Redeemed		(9,728	)				(3,266	)	(74,279	)		(435,957	)		(8,978	)		(20,271	)		(41,625	)				(53,963	)				(64,421	)
Net Increase (Decrease)	$	13,056		$			(3,090)	$	70,530		$	102,817		$	(3,302)			$ (11,221) $			(2,689)					$ (10,853) $					18,876
Shares:
Sold		1,170					–		7,176			22,504			244			409			1,912					2,217					4,226
Reinvested		364					12		2,517			13,392			137			200			711					659					1,324
Redeemed		(654	)				(217	)	(4,950	)		(28,535	)		(601	)		(1,366	)		(2,765	)				(3,632	)				(4,294	)
Net Increase (Decrease)		880					(205	)	4,743			7,361			(220	)		(757	)		(142	)				(756	)				1,256
Year Ended October 31, 2014
Dollars:
Sold	$	17,450		$			41		$ 102,869		$	295,144		$	4,258	$		7,408	$		29,403		$			27,879			$		59,860
Reinvested		2,884					100		19,807			118,374			1,166			2,005			5,843					6,455					10,456
Redeemed		(11,008	)				(434	)	(63,157	)		(164,371	)		(7,092	)		(16,370	)		(24,837	)				(40,710	)				(51,852	)
Net Increase (Decrease)	$	9,326		$			(293)	$	59,519		$	249,147		$	(1,668)	$		(6,957)	$		10,409		$			(6,376) $					18,464
Shares:
Sold		1,163					3		6,802			19,379			282			491			1,952					1,845					3,959
Reinvested		197					7		1,341			7,954			79			136			397					438					705
Redeemed		(735	)				(29	)	(4,175	)		(10,764	)		(471	)		(1,088	)		(1,654	)				(2,740	)				(3,406	)
Net Increase (Decrease)		625					(19	)	3,968			16,569			(110	)		(461	)		695					(457	)				1,258

Distributions:
Year Ended October 31, 2015
From net investment income		$(2,023)			$	(50)			$(13,994)			$ (80,805)		$	(646)	$		(964)	$		(3,689) $					(3,391) $					(7,716	)
From net realized gain on
investments		(3,393	)				(126	)	(23,094	)		(117,974	)		(1,372	)		(1,973	)		(6,744	)				(6,287	)				(11,853	)
Total Dividends and Distributions		$(5,416)			$		(176) $		(37,088)			$ (198,779)			$(2,018)	$		(2,937) $ (10,433) $								(9,678)					$ (19,569)
Year Ended October 31, 2014
From net investment income		$(1,133)			$		(20)	$	(7,790)			$ (51,815)		$	(329)	$		(643)	$		(2,098) $					(2,535) $					(4,256	)
From net realized gain on
investments		(1,757	)				(80	)	(12,019	)		(66,559	)		(837	)		(1,365	)		(3,745	)				(3,920	)				(6,200	)
Total Dividends and Distributions		$(2,890)			$		(100)		$ (19,809)			$ (118,374)			$(1,166)	$		(2,008)	$		(5,843)			$		(6,455)					$ (10,456)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																										Principal LifeTime 2050 Fund
																										Year Ended						Year Ended
																										October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																										$				57,723		$	33,938
Net realized gain (loss) on investments																														99,852			85,573
Change in unrealized appreciation/depreciation of investments																												(127,882			)		66,873
						Net Increase (Decrease) in Net Assets Resulting from Operations																								29,693			186,384

Dividends and Distributions to Shareholders
From net investment income																														(58,299	)		(34,006	)
From net realized gain on investments																														(85,679	)		(53,246	)
														Total Dividends and Distributions														(143,978			)		(87,252	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												199,075					229,185
											Total Increase (Decrease) in Net Assets																			84,790			328,317

Net Assets
Beginning of period																												2,192,322					1,864,005
End of period (including undistributed net investment income as set forth below)																										$		2,277,112				$	2,192,322
Undistributed (overdistributed) net investment income (loss)																										$				1,907		$	2,483

		Class A				Class B^(a)		Class J			Institutional			R-1			R -2				R -3				R -4				R -5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	16,619		$		– $		47,214		$	238,002		$	3,496		$		4,312		$		16,304		$		21,461		$		47,659
Reinvested		3,923				52		10,688			105,458			1,112				1,875				4,963				4,621				11,238
Redeemed		(9,968	)			(969	)	(25,127	)		(193,924	)		(4,309	)			(12,902	)			(19,677	)			(28,992	)			(44,054	)
Net Increase (Decrease)	$	10,574		$		(917	)$	32,775		$	149,536		$	299		$		(6,715) $				1,590		$		(2,910) $				14,843
Shares:
Sold		1,131				–		3,293			16,236			240				296				1,123				1,458				3,269
Reinvested		271				4		761			7,327			78				132				349				323				784
Redeemed		(673	)			(66	)	(1,760	)		(13,117	)		(298	)			(905	)			(1,347	)			(2,011	)			(3,018	)
Net Increase (Decrease)		729				(62	)	2,294			10,446			20				(477	)			125				(230	)			1,035
Year Ended October 31, 2014
Dollars:
Sold	$	14,098		$		20	$	40,725		$	188,169		$	3,223		$		6,136		$		17,693		$		17,246		$		36,255
Reinvested		2,267				33		5,627			65,324			634				1,212				2,893				3,200				6,010
Redeemed		(8,070	)			(178	)	(18,018	)		(93,093	)		(2,854	)			(6,423	)			(13,664	)			(19,567	)			(19,713	)
Net Increase (Decrease)	$	8,295		$		(125	)$	28,334		$	160,400		$	1,003		$		925		$		6,922		$		879		$		22,552
Shares:
Sold		955				1		2,819			12,759			220				420				1,215				1,172				2,467
Reinvested		157				3		400			4,535			45				85				203				223				419
Redeemed		(546	)			(12	)	(1,250	)		(6,313	)		(197	)			(442	)			(933	)			(1,350	)			(1,335	)
Net Increase (Decrease)		566				(8	)	1,969			10,981			68				63				485				45				1,551

Distributions:
Year Ended October 31, 2015
From net investment income $		(1,512) $				(15)	$	(4,048)			$ (43,718)		$	(371) $				(643) $				(1,809) $				(1,612) $				(4,571	)
From net realized gain on
investments		(2,446	)			(37	)	(6,649	)		(61,740	)		(741	)			(1,236	)			(3,154	)			(3,009	)			(6,667	)
Total Dividends and Distributions $		(3,958) $			(52)			$(10,697)			$ (105,458) $			(1,112) $				(1,879) $				(4,963) $				(4,621)				$ (11,238)
Year Ended October 31, 2014
From net investment income $		(825) $				(5)	$	(1,962)			$ (26,336)		$	(163) $				(365) $				(956) $				(1,135) $				(2,259	)
From net realized gain on
investments		(1,447	)			(28	)	(3,670	)		(39,028	)		(471	)			(849	)			(1,937	)			(2,065	)			(3,751	)
Total Dividends and Distributions $		(2,272) $				(33)	$	(5,632)			$ (65,364)		$	(634) $				(1,214) $				(2,893) $				(3,200) $				(6,010	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




																										Principal LifeTime
Amounts in thousands																							Strategic Income Fund
																							Year Ended					Year Ended
																							October 31, 2015					October 31, 2014
Operations
Net investment income (loss)																					$					16,166		$	16,591
Net realized gain (loss) on investments																										29,583			11,937
Change in unrealized appreciation/depreciation of investments																										(43,118	)		11,735
				Net Increase (Decrease) in Net Assets Resulting from Operations																						2,631			40,263

Dividends and Distributions to Shareholders
From net investment income																										(15,567	)		(16,102	)
													Total Dividends and Distributions													(15,567	)		(16,102	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										(71,881	)		6,233
										Total Increase (Decrease) in Net Assets																(84,817	)		30,394

Net Assets
Beginning of period																							804,790						774,396
End of period (including undistributed net investment income as set forth below)																					$		719,973					$	804,790
Undistributed (overdistributed) net investment income (loss)																					$					7,740		$	7,141

		Class A		Class B^(a)		Class J				Institutional			R-1		R -2			R -3				R -4			R -5
Capital Share Transactions:
Year Ended October 31, 2015
Dollars:
Sold	$	4,277	$	– $		19,119			$	63,088		$	855	$		1,267	$		5,478	$			7,840	$		9,964
Reinvested		517		3		1,417				11,655			84			104			519				337			921
Redeemed		(5,858	)	(340	)	(15,780	)		(133,822		)		(2,952	)		(3,633	)		(11,566	)			(12,649	)		(12,726	)
Net Increase (Decrease)	$	(1,064	) $	(337	) $	4,756		$	(59,079		)	$	(2,013	) $		(2,262	) $		(5,569	) $			(4,472	) $		(1,841	)
Shares:
Sold		351		–		1,585				5,199			71			105			456				647			821
Reinvested		43		–		119				972			7			9			44				28			77
Redeemed		(479	)	(27	)	(1,309	)			(11,040	)		(243	)		(300	)		(961	)			(1,049	)		(1,052	)
Net Increase (Decrease)		(85	)	(27	)	395				(4,869	)		(165	)		(186	)		(461	)			(374	)		(154	)
Year Ended October 31, 2014
Dollars:
Sold	$	4,508	$	63	$	15,132			$	80,866		$	1,166	$		2,127	$		9,304	$			7,459	$		12,874
Reinvested		567		3		1,366				11,970			123			136			625				431			879
Redeemed		(5,543	)	(118	)	(13,883	)			(80,035	)		(3,449	)		(2,426	)		(14,827	)			(10,293	)		(12,792	)
Net Increase (Decrease)	$	(468	) $	(52	) $	2,615			$	12,801		$	(2,160	) $		(163	) $		(4,898	) $			(2,403	) $		961
Shares:
Sold		375		5		1,267				6,747			98			179			785				624			1,076
Reinvested		48		–		117				1,022			10			11			54				37			75
Redeemed		(458	)	(10	)	(1,165	)			(6,657	)		(288	)		(203	)		(1,248	)			(866	)		(1,064	)
Net Increase (Decrease)		(35	)	(5	)	219				1,112			(180	)		(13	)		(409	)			(205	)		87

Distributions:
Year Ended October 31, 2015
From net investment income $		(527	) $	(3	) $	(1,417)				$ (11,655)		$	(84	) $		(104	) $		(519	) $			(337	) $		(921	)
From net realized gain on
investments		–		–		–				–			–			–			–				–			–
Total Dividends and Distributions $		(527	) $	(3	) $	(1,417)				$ (11,655)		$	(84	) $		(104	) $		(519	) $			(337	) $		(921	)
Year Ended October 31, 2014
From net investment income $		(569	) $	(3	) $	(1,366)				$ (11,970)		$	(123	) $		(136	) $		(625	) $			(431	) $		(879	)
From net realized gain on
investments		–		–		–				–			–			–			–				–			–
Total Dividends and Distributions $		(569	) $	(3	) $	(1,366)				$ (11,970)		$	(123	) $		(136	) $		(625	) $			(431	) $		(879	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																										SAM Balanced Portfolio
																										Year Ended								Year Ended
																										October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																										$			92,235					$				73,498
Net realized gain (loss) on investments																										306,172									113,544
Change in unrealized appreciation/depreciation of investments																										(347,591				)					191,459
						Net Increase (Decrease) in Net Assets Resulting from Operations																							50,816						378,501

Dividends and Distributions to Shareholders
From net investment income																													(94,484	)								(73,000	)
From net realized gain on investments																										(114,369				)								(72,822	)
															Total Dividends and Distributions											(208,853				)					(145,822				)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										111,957									186,121
											Total Increase (Decrease) in Net Assets																		(46,080	)					418,800

Net Assets
Beginning of period																										4,909,432									4,490,632
End of period (including undistributed net investment income as set forth below)																									$	4,863,352								$	4,909,432
Undistributed (overdistributed) net investment income (loss)																										$			–					$				2,226

		Class A				Class B^(a)		Class C			Class J				Class P				Institutional			R-1			R -2			R -3					R -4				R -5
Capital Share Transactions:
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	297,970			$187			$ 131,222		$	147,888		$		4,130		$	109,627			$	595		$		1,349	$		15,803			$		8,254	$			18,056
Reinvested		87,837				2,542		25,846			43,921				4				36,411			171				333			2,588					2,337				5,053
Redeemed		(277,000	)			(79,100	)	(102,666	)		(145,800	)			(372	)		(127,425		)		(1,555	)			(5,244	)		(9,607	)				(24,695)				(56,703	)
Net Increase (Decrease)	$	108,807		$	(76,371		) $	54,402		$	46,009		$		3,762			$	18,613		$	(789) $				(3,562)	$		8,784		$(14,104)							$ (33,594)
Shares:
Sold		18,474				12		8,257			9,448				267				7,003			38				85			995					521				1,153
Reinvested		5,532				160		1,647			2,844				–				2,323			11				21			166					149				323
Redeemed		(17,237	)			(4,861	)	(6,462	)		(9,341	)			(24	)			(8,023	)		(98	)			(328	)		(608	)				(1,558)				(3,692	)
Net Increase (Decrease)		6,769				(4,689	)	3,442			2,951				243				1,303			(49	)			(222	)		553					(888)				(2,216	)
Year Ended October 31, 2014
Dollars:
Sold	$	261,686			$1,159			$ 120,962		$	169,110				N/A			$	96,268		$	1,254		$		1,478	$		12,657			$		15,752	$			32,588
Reinvested		62,117				2,654		16,315			29,781				N/A				26,562			121				269			1,957					1,741				3,074
Redeemed		(262,946	)			(47,909	)	(93,348	)		(126,093	)			N/A				(91,942	)		(1,257	)			(2,327	)		(20,783	)				(12,704)				(12,075	)
Net Increase (Decrease)	$	60,857		$	(44,096		) $	43,929		$	72,798				N/A			$	30,888		$	118		$		(580)	$		(6,169) $					4,789	$			23,587
Shares:
Sold		16,443				73		7,691			10,889				N/A				6,114			79				95			808					1,001				2,080
Reinvested		3,964				170		1,060			1,950				N/A				1,712			8				17			127					113				198
Redeemed		(16,540	)			(3,017	)	(5,942	)		(8,147	)			N/A				(5,805	)		(82	)			(151	)		(1,318	)				(816)				(769	)
Net Increase (Decrease)		3,867				(2,774	)	2,809			4,692				N/A				2,021			5				(39	)		(383	)				298				1,509

Distributions:
Year Ended October 31, 2015^(b)
From net investment income $ (40,952)						$(861	) $	(9,266)			$ (20,597) $			(4)					$(18,112)		$	(64) $				(129)	$		(1,119) $					(1,012)		$		(2,368	)
From net realized gain on
investments		(48,036	)			(1,720	)	(17,140	)		(23,370	)			–				(18,313	)		(107	)			(204	)		(1,469)					(1,325		)		(2,685	)
Total Dividends and Distributions $ (88,988)						$ (2,581)		$ (26,406)			$ (43,967) $			(4)					$(36,425)		$	(171) $				(333)	$		(2,588) $					(2,337)		$		(5,053	)
Year Ended October 31, 2014
From net investment income $ (32,032)						$(899	) $	(6,022)			$ (15,511)			N/A					$(14,935)		$	(50) $				(113)	$		(920)					$(873)		$		(1,645	)
From net realized gain on
investments		(30,837	)			(1,798	)	(10,663	)		(14,328	)			N/A				(11,635	)		(71	)			(156	)		(1,037	)				(868		)		(1,429	)
Total Dividends and Distributions $ (62,869)						$ (2,697)		$ (16,685)			$ (29,839)				N/A		$	(26,570		)	$	(121) $				(269)	$		(1,957)					$(1,741)		$		(3,074	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																												SAM Conservative Balanced Portfolio
																												Year Ended							Year Ended
																												October 31, 2015							October 31, 2014
Operations
Net investment income (loss)																												$		35,688					$				31,449
Net realized gain (loss) on investments																														66,318									25,559
Change in unrealized appreciation/depreciation of investments																														(88,490	)								48,706
							Net Increase (Decrease) in Net Assets Resulting from Operations																							13,516							105,714

Dividends and Distributions to Shareholders
From net investment income																														(36,898	)								(30,556	)
From net realized gain on investments																														(26,236	)								(28,291	)
															Total Dividends and Distributions															(63,134	)								(58,847	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																														76,968							139,042
													Total Increase (Decrease) in Net Assets																	27,350							185,909

Net Assets
Beginning of period																												1,650,065							1,464,156
End of period (including undistributed net investment income as set forth below)																											$	1,677,415						$	1,650,065
Undistributed (overdistributed) net investment income (loss)																												$		1,388					$				2,598

		Class A					Class B^(a)		Class C				Class J		Class P					Institutional			R-1					R-2		R-3					R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	99,927			$		125	$	60,353			$	97,001	$	1,938			$		44,564		$	589		$			743	$	4,522		$			6,453		$		10,344
Reinvested		18,746					333		7,540				20,833		4					12,027			96					85		734					782				1,418
Redeemed		(82,165	)				(13,686	)	(38,241	)			(94,285	)	(67	)				(46,140	)		(488	)				(1,995	)	(7,537	)				(9,413	)			(18,172	)
Net Increase (Decrease)	$	36,508		$	(13,228)			$	29,652			$	23,549	$	1,875			$		10,451		$	197		$			(1,167)	$	(2,281)			$		(2,178)			$	(6,410	)
Shares:
Sold		8,174					10		4,987				8,025		164					3,703			49					62		373					533				856
Reinvested		1,550					28		629				1,741		–					1,002			8					7		61					65				118
Redeemed		(6,736	)				(1,107	)	(3,165	)			(7,811	)	(6	)				(3,813	)		(41	)				(164	)	(623	)				(776	)			(1,527	)
Net Increase (Decrease)		2,988					(1,069	)	2,451				1,955		158					892			16					(95	)	(189	)				(178	)			(553	)
Year Ended October 31, 2014
Dollars:
Sold	$	99,282			$		490	$	55,534		$	112,853			N/A			$		36,746		$	670		$			657	$	5,613		$			8,035		$		13,906
Reinvested		17,505					558		6,780				18,853		N/A					11,758			141					109		775					702				1,246
Redeemed		(79,948	)				(8,122	)	(36,271	)			(67,221	)	N/A					(37,028	)		(2,473	)				(1,111	)	(6,025	)				(6,011	)			(8,961	)
Net Increase (Decrease)	$	36,839			$		(7,074)	$	26,043			$	64,485		N/A			$		11,476		$	(1,662			) $		(345)	$	363		$			2,726		$		6,191
Shares:
Sold		8,171					40		4,613				9,384		N/A					3,051			56					54		470					664				1,159
Reinvested		1,459					47		572				1,587		N/A					987			12					9		65					59				105
Redeemed		(6,583	)				(668	)	(3,009	)			(5,582	)	N/A					(3,072	)		(210	)				(92	)	(500	)				(504	)			(747	)
Net Increase (Decrease)		3,047					(581	)	2,176				5,389		N/A					966			(142	)				(29	)	35					219				517

Distributions:
Year Ended October 31, 2015^(b)
From net investment income		$ (11,290)					$(138)	$	(3,823) $				(12,395) $		(4)				$	(7,453	)	$	(50)			$		(44)		$(404)			$		(446)			$	(851	)
From net realized gain on
investments		(7,770	)				(202	)	(3,907	)			(8,463	)	–					(4,574	)		(46	)				(41	)	(330	)				(336	)			(567	)
Total Dividends and Distributions		$ (19,060) $					(340)	$	(7,730) $				(20,858) $		(4) $					(12,027	)	$	(96)			$		(85)	$	(734)			$		(782)			$	(1,418	)
Year Ended October 31, 2014
From net investment income $		(9,323)				$	(210)	$	(2,871) $				(10,067)		N/A			$		(6,567	)	$	(56)					(49)	$	(382)			$		(356)			$	(675	)
From net realized gain on
investments		(8,431	)				(367	)	(4,049	)			(8,797	)	N/A					(5,192	)		(85	)				(60	)	(393	)				(346	)			(571	)
Total Dividends and Distributions		$ (17,754) $					(577)	$	(6,920)				$ (18,864)		N/A		$	(11,759			)	$	(141)			$		(109)	$	(775)			$		(702)			$	(1,246	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																										SAM Conservative Growth Portfolio
																										Year Ended						Year Ended
																										October 31, 2015						October 31, 2014
Operations
Net investment income (loss)																										$		51,222				$			34,716
Net realized gain (loss) on investments																										297,635							102,217
Change in unrealized appreciation/depreciation of investments																										(316,879			)				157,107
						Net Increase (Decrease) in Net Assets Resulting from Operations																						31,978					294,040

Dividends and Distributions to Shareholders
From net investment income																												(52,728	)						(37,744	)
From net realized gain on investments																										(102,365			)						(26,302	)
																Total Dividends and Distributions										(155,093			)						(64,046	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												34,828							32,336
												Total Increase (Decrease) in Net Assets																(88,287	)				262,330

Net Assets
Beginning of period																										3,272,719							3,010,389
End of period (including undistributed net investment income as set forth below)																									$	3,184,432						$	3,272,719
Undistributed (overdistributed) net investment income (loss)																										$		1,202				$			2,713

		Class A				Class B^(a)		Class C				Class J				Class P				Institutional			R-1			R-2		R-3				R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	192,880			$	128	$	67,814		$		72,559		$		2,909			$	62,339		$	711	$		1,627	$	6,561		$		6,067	$		12,921
Reinvested		69,639				2,102		23,076				24,520				–				26,906			192			392		1,226				1,179			4,218
Redeemed		(193,303	)			(59,776	)	(70,964	)			(77,500	)			(73	)			(72,993	)		(1,812	)		(4,943	)	(3,635	)			(10,305)			(49,834	)
Net Increase (Decrease)	$	69,216		$	(57,546		) $	19,926		$		19,579		$		2,836			$	16,252		$	(909	) $		(2,924	) $	4,152		$		(3,059)			$ (32,695)
Shares:
Sold		10,439				7		3,896				4,056				165				3,510			39			91		365				337			725
Reinvested		3,843				120		1,351				1,392				–				1,510			11			22		70				66			238
Redeemed		(10,520	)			(3,287	)	(4,090	)			(4,340	)			(4	)			(4,044	)		(103	)		(275	)	(203	)			(576)			(2,875	)
Net Increase (Decrease)		3,762				(3,160	)	1,157				1,108				161				976			(53	)		(162	)	232				(173)			(1,912	)
Year Ended October 31, 2014
Dollars:
Sold	$	168,703			$	782	$	63,476		$		90,413				N/A			$	42,885		$	1,178	$		1,227	$	5,477		$		6,638	$		20,443
Reinvested		29,395				887		7,886				9,814				N/A				12,404			68			148		576				514			1,605
Redeemed		(182,989	)			(38,774	)	(68,382	)			(59,775	)			N/A				(54,227	)		(1,479	)		(1,801	)	(8,136	)			(6,004)			(10,616	)
Net Increase (Decrease)	$	15,109		$	(37,105		) $	2,980		$		40,452				N/A			$	1,062		$	(233	) $		(426	) $	(2,083)			$	1,148	$		11,432
Shares:
Sold		9,317				44		3,697				5,127				N/A				2,390			66			70		311				374			1,155
Reinvested		1,656				52		470				568				N/A				710			4			8		34				30			93
Redeemed		(10,096	)			(2,206	)	(3,982	)			(3,383	)			N/A				(3,024	)		(85	)		(103	)	(460	)			(341)			(595	)
Net Increase (Decrease)		877				(2,110	)	185				2,312				N/A				76			(15	)		(25	)	(115	)			63			653

Distributions:
Year Ended October 31, 2015^(b)
From net investment income $		(24,700) $				(348	) $	(5,773)			$	(8,800)			$	–		$	(10,601		)	$	(52	) $		(117	) $	(388)			$	(412)		$	(1,537	)
From net realized gain on
investments		(45,829	)			(1,779	)	(18,013	)			(15,731	)			–				(16,312	)		(140	)		(275	)	(838	)			(767)			(2,681	)
Total Dividends and Distributions		$ (70,529)				$(2,127)		$ (23,786)				$(24,531)				$–		$	(26,913		)	$	(192	) $		(392	) $	(1,226)			$	(1,179)		$	(4,218	)
Year Ended October 31, 2014
From net investment income $		(18,085) $				(145	) $	(3,539)			$	(6,053	)			N/A			$	(8,160	)	$	(32	) $		(78	) $	(333)			$	(315)		$	(1,004	)
From net realized gain on
investments		(11,765	)			(755	)	(4,616	)			(3,769	)			N/A				(4,248	)		(36	)		(70	)	(243	)			(199)			(601	)
Total Dividends and Distributions		$ (29,850) $				(900	) $	(8,155)			$	(9,822	)			N/A		$	(12,408		)	$	(68	) $		(148	) $	(576)			$	(514)		$	(1,605	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																								SAM Flexible Income Portfolio
																								Year Ended					Year Ended
																								October 31, 2015					October 31, 2014
Operations
Net investment income (loss)																								$		55,748			$		47,777
Net realized gain (loss) on investments																										56,598					21,207
Change in unrealized appreciation/depreciation of investments																								(111,997			)				48,443
						Net Increase (Decrease) in Net Assets Resulting from Operations																				349			117,427

Dividends and Distributions to Shareholders
From net investment income																										(54,855	)				(47,578	)
From net realized gain on investments																										(21,877	)				(27,718	)
														Total Dividends and Distributions												(76,732	)				(75,296	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																								261,763					218,348
											Total Increase (Decrease) in Net Assets													185,380					260,479

Net Assets
Beginning of period																								2,070,086					1,809,607
End of period (including undistributed net investment income as set forth below)																							$	2,255,466				$	2,070,086
Undistributed (overdistributed) net investment income (loss)																								$		1,092			$		199

		Class A				Class B^(a)		Class C			Class J			Class P				Institutional			R-1			R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	222,826			$	126	$	97,577		$	250,254		$	4,676		$		31,072		$	161	$		416	$	3,322	$		2,276	$	4,492
Reinvested		29,207				307		9,283			28,565			11				7,076			23			32		375			383		780
Redeemed		(175,907	)			(16,876	)	(58,992	)		(125,499	)		(71	)			(34,505	)		(224	)		(715	)	(3,737	)		(6,527	)	(8,424	)
Net Increase (Decrease)	$	76,126		$	(16,443		) $	47,868		$	153,320		$	4,616		$		3,643		$	(40	) $		(267	) $	(40	) $		(3,868	) $	(3,152	)
Shares:
Sold		17,909				10		7,925			20,289			386				2,513			13			33		267			184		363
Reinvested		2,357				25		756			2,323			1				573			2			3		31			31		63
Redeemed		(14,180	)			(1,342	)	(4,802	)		(10,197	)		(6	)			(2,795	)		(18	)		(57	)	(302	)		(527	)	(692	)
Net Increase (Decrease)		6,086				(1,307	)	3,879			12,415			381				291			(3	)		(21	)	(4	)		(312	)	(266	)
Year Ended October 31, 2014
Dollars:
Sold	$	174,672			$	565	$	90,762		$	192,986			N/A		$		21,324		$	275	$		294	$	3,483	$		3,379	$	5,942
Reinvested		29,655				665		8,890			25,926			N/A				7,754			29			50		414			491		762
Redeemed		(146,495	)			(9,495	)	(53,794	)		(99,032	)		N/A				(27,335	)		(621	)		(912	)	(4,206	)		(4,459	)	(3,621	)
Net Increase (Decrease)	$	57,832			$	(8,265	) $	45,858		$	119,880			N/A		$		1,743		$	(317	) $		(568	) $	(309	) $		(589	) $	3,083
Shares:
Sold		14,011				46		7,346			15,592			N/A				1,713			22			24		282			271		480
Reinvested		2,400				54		727			2,112			N/A				629			2			4		34			40		62
Redeemed		(11,767	)			(763	)	(4,359	)		(8,016	)		N/A				(2,200	)		(50	)		(75	)	(339	)		(361	)	(292	)
Net Increase (Decrease)		4,644				(663	)	3,714			9,688			N/A				142			(26	)		(47	)	(23	)		(50	)	250

Distributions:
Year Ended October 31, 2015^(b)
From net investment income		$ (21,358) $				(146	) $	(6,118) $			(20,889) $			(11)			$	(5,225	)	$	(15	) $		(22	) $	(257	) $		(258	) $	(556	)
From net realized gain on
investments		(8,287	)			(167	)	(3,335	)		(7,749	)		–				(1,854	)		(8	)		(10	)	(118	)		(125	)	(224	)
Total Dividends and Distributions		$ (29,645) $				(313	) $	(9,453) $			(28,638) $			(11)			$	(7,079	)	$	(23	) $		(32	) $	(375	) $		(383	) $	(780	)
Year Ended October 31, 2014
From net investment income		$ (19,103) $				(327	) $	(5,071) $			(16,886)			N/A $				(5,102	)	$	(16	) $		(29	) $	(250	) $		(298	) $	(496	)
From net realized gain on
investments		(10,979	)			(350	)	(3,972	)		(9,106	)		N/A				(2,654	)		(13	)		(21	)	(164	)		(193	)	(266	)
Total Dividends and Distributions		$ (30,082) $				(677	) $	(9,043)			$ (25,992)			N/A		$		(7,756	)	$	(29	) $		(50	) $	(414	) $		(491	) $	(762	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.




Amounts in thousands																									SAM Strategic Growth Portfolio
																									Year Ended								Year Ended
																									October 31, 2015								October 31, 2014
Operations
Net investment income (loss)																									$				35,133				$			17,813
Net realized gain (loss) on investments																											225,188									94,122
Change in unrealized appreciation/depreciation of investments																											(242,500			)						97,180
						Net Increase (Decrease) in Net Assets Resulting from Operations																							17,821					209,115

Dividends and Distributions to Shareholders
From net investment income																													(34,985	)						(19,180	)
From net realized gain on investments																													(94,070	)						(13,887	)
																Total Dividends and Distributions											(129,055			)						(33,067	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																													30,241							(48,943	)
												Total Increase (Decrease) in Net Assets																	(80,993	)				127,105

Net Assets
Beginning of period																											2,013,177							1,886,072
End of period (including undistributed net investment income as set forth below)																									$		1,932,184						$	2,013,177
Undistributed (overdistributed) net investment income (loss)																									$				5,580				$			5,432

		Class A				Class B^(a)		Class C				Class J				Class P				Institutional			R-1		R-2				R-3				R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	127,786			$	82	$	38,193		$		37,020		$		1,439			$	30,909		$	659	$	1,514		$		4,399		$		6,720	$		9,769
Reinvested		62,495				2,452		19,822				18,748				–				18,927			258		294				1,126				1,260			2,320
Redeemed		(128,375	)			(46,920	)	(45,000	)			(45,191	)			(98	)			(48,080	)		(1,791	)	(3,557	)			(4,305	)			(12,775		)	(19,859	)
Net Increase (Decrease)	$	61,906		$	(44,386		) $	13,015		$		10,577		$		1,341			$	1,756		$	(874)	$	(1,749)			$	1,220		$		(4,795)		$	(7,770	)
Shares:
Sold		6,059				4		1,958				1,809				72				1,540			31		74				216				327			480
Reinvested		3,030				127		1,034				933				–				934			13		15				56				62			115
Redeemed		(6,132	)			(2,341	)	(2,304	)			(2,216	)			(5	)			(2,337	)		(88	)	(173	)			(212	)			(622		)	(1,018	)
Net Increase (Decrease)		2,957				(2,210	)	688				526				67				137			(44	)	(84	)			60				(233		)	(423	)
Year Ended October 31, 2014
Dollars:
Sold	$	100,668			$	585	$	35,497		$		39,944				N/A			$	26,851		$	1,080	$	1,004		$		3,297		$		6,294	$		9,810
Reinvested		16,489				521		3,857				4,922				N/A				5,586			57		69				342				295			567
Redeemed		(136,073	)			(29,695	)	(52,474	)			(38,730	)			N/A				(31,193	)		(1,454	)	(988	)			(6,841	)			(3,139		)	(6,091	)
Net Increase (Decrease)	$	(18,916)				$ (28,589)		(13,120)				$6,136				N/A			$	1,244		$	(317)	$	85		$		(3,202)			$	3,450	$		4,286
Shares:
Sold		4,845				31		1,826				1,972				N/A				1,304			55		50				161				308			484
Reinvested		811				27		204				248				N/A				280			3		3				17				15			28
Redeemed		(6,537	)			(1,519	)	(2,699	)			(1,909	)			N/A				(1,517	)		(74	)	(49	)			(337	)			(155		)	(298	)
Net Increase (Decrease)		(881	)			(1,461	)	(669	)			311				N/A				67			(16	)	4				(159	)			168			214

Distributions:
Year Ended October 31, 2015^(b)
From net investment income		$ (17,786) $				(350	) $	(3,981)			$	(5,395)			$	–			$	(6,050	)	$	(49)	$	(69)			$	(288)			$	(337)		$	(680	)
From net realized gain on
investments		(45,478	)			(2,128	)	(16,319	)			(13,354)				–				(12,956	)		(209	)	(225)				(838	)			(923		)	(1,640	)
Total Dividends and Distributions		$ (63,264) $				(2,478)		$ (20,300)				$ (18,749)				–		$	(19,006		)	$	(258	) $	(294			)$	(1,126			)$	(1,260		)$	(2,320	)
Year Ended October 31, 2014
From net investment income		$ (10,062)				(21	) $	(1,523)			$	(3,040	)			N/A			$	(3,734	)	$	(27)	$	(37)			$	(197)			$	(180)		$	(359	)
From net realized gain on
investments		(6,646	)			(507	)	(2,450	)			(1,884	)			N/A				(1,870	)		(30	)	(32	)			(145	)			(115		)	(208	)
Total Dividends and Distributions		$ (16,708)				$(528	) $	(3,973)			$	(4,924	)			N/A			$	(5,604	)	$	(57)	$	(69)			$	(342)			$	(295)		$	(567	)

Principal Funds, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and operates as a series fund in the mutual fund industry. The financial statements for Principal LifeTime 2010 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2050 Fund, Principal LifeTime Strategic Income Fund (collectively, the “Principal LifeTime Funds”), SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, and SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) (known as the "Funds") are presented herein. The Funds may offer up to ten classes of shares: Class A, Class C, Class J, Class P, Institutional, R-1, R-2, R-3, R-4, and R-5. Information presented in these financial statements pertains to Class A, Class C and Class P shares. Certain detailed financial information for Class J, Institutional, R-1, R-2, R-3, R-4, and R-5 classes of shares is provided separately.

Each of the Funds is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946, Financial Services - Investment Companies. Each of the Funds was an investment company at all times during the period. The Funds have not provided financial support, and are not contractually required to provide financial support to any investee.

Effective February 23, 2015, Class B shares discontinued operations and converted to Class A shares.

Effective August 24, 2015, the initial purchase of $10,000 of Class P shares of SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio and SAM Strategic Growth Portfolio were made by Principal Management Corporation (the “Manager”).

Security Valuation. The Funds invest in Institutional Class shares of other series of Principal Funds, Inc. (the "Underlying Funds"). Investments in the Underlying Funds are valued at the closing net asset value per share of each Underlying Fund on the day of valuation.

Income and Investment Transactions. The Funds record investment transactions on a trade date basis. 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. The Funds allocate daily all income and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding of each class.

Expenses. Expenses directly attributed to a particular fund are charged to that fund. Other fund expenses not directly attributed to a particular fund are apportioned among the registered investment companies managed by the Manager.

In addition to the expenses that each of the Funds bears directly, each of the Funds indirectly bears 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 Underlying Funds at different times, the amount of expense incurred indirectly by each of the Funds will vary. 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. Expenses included in the statements of operations of the Funds reflect the expenses of each of the Funds and do not include any expenses associated with the Underlying Funds.

Distributions to Shareholders. Dividends and distributions to shareholders of the Funds are recorded on the ex-dividend date. Dividends and distributions to shareholders from net investment income and net realized gain from investments are determined in accordance with federal tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales. 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.

The Funds evaluate 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. During the period ended October 31, 2015, the Funds did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years from 2012-2015. No examinations are in progress at this time.

The Funds participate with other registered investment companies managed by the Manager in an unsecured joint line of credit with a bank which allows the participants to borrow up to $75 million, collectively. Borrowings are made solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each participant, based on its borrowings, at a rate equal to the higher of the Fed Funds Rate or LIBOR Rate plus 1.00%. Additionally, a commitment fee is charged at an annual rate of .10% on the amount of the line of credit. The Funds did not borrow against the line of credit during the period ended October 31, 2015.

The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

The beginning of the period timing recognition has been adopted for the significant transfers between levels of each Fund’s assets and liabilities. As of October 31, 2015 there were no transfers between Level 1 and Level 2 and 100% of the Funds’ investments were valued based on Level 1 inputs.

Management Services. The Funds have agreed to pay investment advisory and management fees to Principal Management Corporation (wholly owned by Principal Financial Services, Inc.). A portion of the management fee is paid by Principal Management Corporation to the sub-advisor of each of the Funds, which are affiliates of the Manager. The annual rate paid by each of the Principal LifeTime Funds is .03% of each of the Principal LifeTime Funds’ average net assets. The annual rate paid by the SAM Portfolios is based upon the aggregate average daily net assets (“aggregate net assets”) of the SAM Portfolios. The investment advisory and management fee schedule for the SAM Portfolios is .55% of aggregate net assets up to $500 million, .50% of the next $500 million of aggregate net assets, .45% of the next $1 billion of aggregate net assets, .40% of the next $1 billion of aggregate net assets, .35% of the next $1 billion of aggregate net assets, .30% of the next $1 billion of aggregate net assets, .25% of the next $9 billion of aggregate net assets, and .20% of aggregate net assets over $14 billion.

In addition, the Manager has contractually agreed to limit Class P expenses other than management and investment advisory fees and distributions fees and, if necessary, pay expenses normally payable by the Fund, excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses, through the period ending February 28, 2017. The expense limit will maintain these expenses (expressed as a percent of average net assets on an annualized basis) not to exceed .20% for each of SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, respectively.

Amounts owed to the Funds under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as expense reimbursement from Manager.

Distribution Fees. Class A, Class C, Class J, R-1, R-2, R-3, and R-4 shares of the Funds bear distribution fees. The fee is computed at an annual rate of the average daily net assets attributable to each class of each of the Funds. Distribution fees are paid to Principal Funds Distributor, Inc. (the "Distributor"), 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 rates are .25%, 1.00%, .25%, .35%, .30%, .25%, and .10% for Class A, Class C, Class J, R-1, R-2, R-3 and R-4 classes of shares, respectively.

The Distributor has voluntarily agreed to limit the distribution fees (expressed as a percentage of average net assets on an annualized basis) attributable to Class J shares. The limit will maintain the level of distribution fees not to exceed .15% for Class J shares. The voluntary expense limit may be terminated at any time.

Amounts owed to the Funds under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as expense reimbursement from Distributor.

Sales Charges. The Distributor receives proceeds of any CDSC on certain Class A, Class C, and Class J share redemptions. The charge for Class A shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 12 months of purchase that were originally sold without a sales charge. The charge for Class C shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 12 months of purchase. The charge for Class J shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 18 months of purchase. The Distributor also retains sales charges on sales of Class A shares based on declining rates which begin at 3.75% for Principal LifeTime 2010 Fund, Principal LifeTime Strategic Income Fund, and SAM Flexible Income Portfolio and 5.50% for all other Funds. The aggregate amounts of these charges retained by the Distributor for the period ended October 31, 2015, were as follows (in thousands):

The following table reflects the conversion of Class B shares into Class A shares (reflected in the statement of changes in net assets as Class B shares and dollars redeemed and as Class A dollars sold) for the year ended October 31, 2015(amounts in thousands):

For the period ended October 31, 2015, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and U.S. government securities) by the Funds were as follows (amounts in thousands):

Distributions to Shareholders. The federal income tax character of distributions paid for the years ended October 31, 2015 and October 31, 2014 were as follows (amounts in thousands):

* The funds designate these distributions as long-term capital gain dividends per IRC 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).

For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.

Distributable Earnings. As of October 31, 2015, the components of distributable earnings/(deficit) on a federal tax basis were as follows (amounts in thousands):

As of October 31, 2015, the following funds utilized capital loss carryforwards as follows (amounts in thousands):

Late-Year Losses. A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. For the taxable year ended October 31, 2015, the Funds do not plan to defer any late-year losses.


				Schedule of Investments
				Principal LifeTime 2010 Fund
				October 31, 2015

INVESTMENT COMPANIES - 100.01%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)		2,659,289	$	43,001
Bond Market Index Fund ^(a)		8,821,844		97,834
Core Plus Bond Fund ^(a)	26,892,922			290,175
Diversified International Fund ^(a)		4,818,194		55,554
Diversified Real Asset Fund ^(a)		5,207,305		57,645
Equity Income Fund ^(a)		1,667,795		43,079
Global Diversified Income Fund ^(a)		8,574,083		116,093
Global Multi-Strategy Fund ^(a)		4,327,061		47,598
Global Opportunities Fund ^(a)		1,962,810		23,377
Inflation Protection Fund ^(a)	13,326,450			111,276
International Emerging Markets Fund ^(a)		609,127		12,938
LargeCap Growth Fund I ^(a)		3,459,744		46,672
LargeCap S&P 500 Index Fund ^(a)		4,521,269		66,915
LargeCap Value Fund III ^(a)		3,257,001		51,428
MidCap Fund ^(a)		2,421,295		54,745
Origin Emerging Markets Fund ^(a),(b)		1,259,839		11,049
Overseas Fund ^(a)		5,202,704		52,911
Short-Term Income Fund ^(a)	13,201,654			160,664
SmallCap Growth Fund I ^(a)		1,541,025		18,477
SmallCap Value Fund II ^(a)		1,503,885		19,189
		$		1,380,620
TOTAL INVESTMENT COMPANIES		$		1,380,620
Total Investments		$		1,380,620
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(205	)
TOTAL NET ASSETS - 100.00%		$		1,380,415


Schedule of Investments
Principal LifeTime 2010 Fund
October 31, 2015
	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—	2,955,501	$	46,611	296,212		$	4,708	2,659,289	$	41,909
Bond Market Index Fund	—		—	10,775,851		120,078	1,954,007			21,673	8,821,844		98,336
Core Plus Bond Fund	28,992,665		314,975	7,941,538		86,843	10,041,281			109,816	26,892,922		291,998
Core Plus Bond Fund I	16,575,093		174,845	—		—	16,575,093			186,657	—		—
Diversified International Fund	6,230,260		89,638	198,060		2,305	1,610,126			19,006	4,818,194		72,901
Diversified Real Asset Fund	4,946,391		50,972	1,459,186		17,577	1,198,272			14,255	5,207,305		55,035
Equity Income Fund	3,189,866		60,294	89,786		2,355	1,611,857			43,642	1,667,795		31,481
Global Diversified Income Fund	5,755,257		65,182	4,450,732		62,652	1,631,906			22,860	8,574,083		105,174
Global Multi-Strategy Fund	4,052,842		41,834	1,264,844		14,162	990,625			11,027	4,327,061		45,160
Global Opportunities Fund	2,111,906		22,881	267,864		3,126	416,960			5,097	1,962,810		21,165
High Yield Fund I	4,312,910		41,486	128,534		1,308	4,441,444			45,512	—		—
Inflation Protection Fund	9,770,709		79,378	6,235,186		53,338	2,679,445			22,803	13,326,450		109,943
International Emerging Markets Fund	958,038		26,831	30,079		698	378,990			8,915	609,127		17,776
LargeCap Growth Fund I	7,295,056		56,778	827,386		10,164	4,662,698			60,733	3,459,744		25,535
LargeCap S&P 500 Index Fund	4,327,759		42,994	1,208,096		17,838	1,014,586			14,719	4,521,269		47,647
LargeCap Value Fund	2,633,407		22,998	327,206		4,147	2,960,613			38,195	—		—
LargeCap Value Fund III	3,801,692		50,981	152,197		2,396	696,888			11,008	3,257,001		43,459
MidCap Fund	3,215,649		47,500	214,479		4,667	1,008,833			23,189	2,421,295		35,494
Origin Emerging Markets Fund	—		—	1,422,989		14,197	163,150			1,519	1,259,839		12,627
Overseas Fund	6,286,816		56,326	584,022		6,153	1,668,134			17,966	5,202,704		45,965
Short-Term Income Fund	15,008,224		181,265	1,355,577		16,560	3,162,147			38,609	13,201,654		159,189
SmallCap Growth Fund I	1,638,223		15,916	354,270		4,126	451,468			5,747	1,541,025		14,203
SmallCap Value Fund II	1,784,867		14,099	231,616		2,934	512,598			6,843	1,503,885		11,631
		$	1,457,173	$		494,235			$	734,499		$	1,286,628


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			6			$			—
Bond Market Index Fund			2,369				(69	)					—
Core Plus Bond Fund			8,534				(4	)					—
Core Plus Bond Fund I			—				11,812						—
Diversified International Fund			1,071				(36	)					—
Diversified Real Asset Fund			915				741						310
Equity Income Fund			1,252				12,474						—
Global Diversified Income Fund			5,559				200						1,373
Global Multi-Strategy Fund			518				191						545
Global Opportunities Fund			1,815				255						863
High Yield Fund I			658				2,718						235
Inflation Protection Fund			1,065				30						—
International Emerging Markets Fund			369				(838	)					—
LargeCap Growth Fund I			1,084				19,326						7,937
LargeCap S&P 500 Index Fund			1,103				1,534						—
LargeCap Value Fund			2,190				11,050						1,755
LargeCap Value Fund III			1,019				1,090						426
MidCap Fund			302				6,516						3,210
Origin Emerging Markets Fund			—				(51	)					—
Overseas Fund			2,272				1,452						2,642
Short-Term Income Fund			2,729				(27	)					42
SmallCap Growth Fund I			154				(92	)					3,657
SmallCap Value Fund II			520				1,441						2,100
	$		35,498	$			69,719			$			25,095
Amounts in thousands except shares


				Schedule of Investments
				Principal LifeTime 2020 Fund
				October 31, 2015


INVESTMENT COMPANIES - 100.01%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	16,237,713		$	262,564
Bond Market Index Fund ^(a)	30,608,617			339,449
Core Plus Bond Fund ^(a)	104,781,338			1,130,591
Diversified International Fund ^(a)	29,604,207			341,336
Diversified Real Asset Fund ^(a)	23,197,291			256,794
Equity Income Fund ^(a)		9,579,567		247,440
Global Diversified Income Fund ^(a)	29,394,252			397,998
Global Multi-Strategy Fund ^(a)	17,600,354			193,604
Global Opportunities Fund ^(a)	25,632,045			305,278
Global Real Estate Securities Fund ^(a)	18,763,963			174,880
Inflation Protection Fund ^(a)	24,711,455			206,341
International Emerging Markets Fund ^(a)		3,877,397		82,356
LargeCap Growth Fund I ^(a)	21,264,018			286,851
LargeCap S&P 500 Index Fund ^(a)	32,486,736			480,804
LargeCap Value Fund III ^(a)	18,245,963			288,104
MidCap Fund ^(a)		7,845,242		177,381
MidCap Growth Fund III ^(a)	10,783,661			112,366
MidCap Value Fund III ^(a)		5,872,899		112,525
Origin Emerging Markets Fund ^(a),(b)		6,828,646		59,887
Overseas Fund ^(a)	32,926,447			334,862
Short-Term Income Fund ^(a)	18,318,259			222,933
SmallCap Growth Fund I ^(a)		9,276,261		111,222
SmallCap Value Fund II ^(a)		9,191,608		117,285
		$		6,242,851
TOTAL INVESTMENT COMPANIES		$		6,242,851
Total Investments		$		6,242,851
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(818	)
TOTAL NET ASSETS - 100.00%		$		6,242,033


Schedule of Investments
Principal LifeTime 2020 Fund
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—	17,141,917	$	269,813	904,204		$	14,284	16,237,713	$	255,474
Bond Market Index Fund	—		—	35,292,012		392,941	4,683,395			52,045	30,608,617		340,933
Core Plus Bond Fund	90,707,453		983,777	29,974,905		327,872	15,901,020			173,448	104,781,338		1,138,199
Core Plus Bond Fund I	56,260,713		607,618	—		—	56,260,713			632,893	—		—
Diversified International Fund	32,751,125		443,284	1,440,805		16,891	4,587,723			53,574	29,604,207		405,783
Diversified Real Asset Fund	15,459,195		165,194	10,476,811		126,531	2,738,715			32,567	23,197,291		259,499
Equity Income Fund	8,288,809		158,464	2,584,754		70,201	1,293,996			34,029	9,579,567		197,755
Global Diversified Income Fund	10,039,151		136,803	21,919,540		309,900	2,564,439			35,837	29,394,252		410,926
Global Multi-Strategy Fund	16,508,779		172,267	3,606,363		40,575	2,514,788			28,036	17,600,354		185,229
Global Opportunities Fund	25,668,932		279,427	3,514,614		41,163	3,551,501			44,140	25,632,045		279,118
Global Real Estate Securities Fund	24,081,750		179,969	1,287,289		12,020	6,605,076			61,989	18,763,963		138,885
High Yield Fund I	12,582,832		121,828	454,151		4,626	13,036,983			133,598	—		—
Inflation Protection Fund	25,995,825		226,409	2,655,088		22,768	3,939,458			33,603	24,711,455		215,696
International Emerging Markets Fund	7,108,177		179,346	294,497		6,922	3,525,277			85,024	3,877,397		100,519
LargeCap Growth Fund I	45,172,084		353,584	5,478,812		67,547	29,386,878			383,901	21,264,018		155,114
LargeCap S&P 500 Index Fund	29,228,723		266,001	7,593,642		111,019	4,335,629			62,892	32,486,736		320,798
LargeCap Value Fund	21,506,209		204,438	2,816,655		35,736	24,322,864			313,491	—		—
LargeCap Value Fund III	30,849,069		416,940	1,421,624		22,445	14,024,730			223,308	18,245,963		242,079
MidCap Fund	4,815,200		71,565	3,891,999		90,814	861,957			19,494	7,845,242		144,405
MidCap Growth Fund III	10,729,167		96,320	2,849,333		29,220	2,794,839			31,744	10,783,661		94,410
MidCap Value Fund III	6,734,334		107,898	726,174		14,034	1,587,609			32,008	5,872,899		93,780
Origin Emerging Markets Fund	—		—	7,326,195		74,531	497,549			4,544	6,828,646		69,743
Overseas Fund	34,299,506		327,041	3,587,389		37,932	4,960,448			53,983	32,926,447		310,830
Short-Term Income Fund	19,227,454		235,166	2,001,023		24,468	2,910,218			35,524	18,318,259		224,090
SmallCap Growth Fund I	8,490,984		80,810	1,920,609		22,458	1,135,332			14,892	9,276,261		88,460
SmallCap Value Fund II	9,073,018		71,023	1,266,849		16,112	1,148,259			15,564	9,191,608		74,730
		$	5,885,172		$	2,188,539			$	2,606,412		$	5,746,455


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			(55	)		$			—
Bond Market Index Fund			7,528				37						—
Core Plus Bond Fund			30,018				(2	)					—
Core Plus Bond Fund I			—				25,275						—
Diversified International Fund			5,596				(818	)					—
Diversified Real Asset Fund			2,846				341						962
Equity Income Fund			5,678				3,119						—
Global Diversified Income Fund			14,962				60						2,377
Global Multi-Strategy Fund			2,100				423						2,209
Global Opportunities Fund			21,880				2,668						10,404
Global Real Estate Securities Fund			6,043				8,885						983
High Yield Fund I			1,923				7,144						683
Inflation Protection Fund			2,821				122						—
International Emerging Markets Fund			2,715				(725	)					—
LargeCap Growth Fund I			6,653				117,884						48,727
LargeCap S&P 500 Index Fund			7,395				6,670						—
LargeCap Value Fund			17,732				73,317						14,209
LargeCap Value Fund III			8,202				26,002						3,430
MidCap Fund			449				1,520						4,765
MidCap Growth Fund III			10,423				614						15,804
MidCap Value Fund III			5,101				3,856						5,894
Origin Emerging Markets Fund			—				(244	)					—
Overseas Fund			12,323				(160	)					14,314
Short-Term Income Fund			3,597				(20	)					54
SmallCap Growth Fund I			793				84						18,779
SmallCap Value Fund II			2,616				3,159						10,563
	$		179,394	$			279,156			$			154,157
Amounts in thousands except shares


				Schedule of Investments
				Principal LifeTime 2030 Fund
				October 31, 2015


INVESTMENT COMPANIES - 100.01%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	17,080,761		$	276,196
Bond Market Index Fund ^(a)	23,752,774			263,418
Core Plus Bond Fund ^(a)	79,700,305			859,966
Diversified International Fund ^(a)	40,951,567			472,172
Diversified Real Asset Fund ^(a)	23,699,339			262,352
Equity Income Fund ^(a)		8,775,212		226,664
Global Diversified Income Fund ^(a)	19,895,311			269,383
Global Multi-Strategy Fund ^(a)	18,242,606			200,669
Global Opportunities Fund ^(a)	26,617,749			317,017
Global Real Estate Securities Fund ^(a)	27,686,728			258,040
Inflation Protection Fund ^(a)	16,444,498			137,312
International Emerging Markets Fund ^(a)		5,401,684		114,732
LargeCap Growth Fund I ^(a)	37,933,757			511,726
LargeCap S&P 500 Index Fund ^(a)	44,157,490			653,531
LargeCap Value Fund ^(a)	22,067,252			281,357
LargeCap Value Fund III ^(a)	17,151,944			270,829
MidCap Fund ^(a)		2,886,030		65,253
MidCap Growth Fund III ^(a)	20,750,141			216,216
MidCap Value Fund III ^(a)	11,079,368			212,281
Origin Emerging Markets Fund ^(a),(b)	10,892,910			95,531
Overseas Fund ^(a)	46,537,809			473,289
SmallCap Growth Fund I ^(a)	10,757,702			128,985
SmallCap Value Fund II ^(a)	10,136,306			129,339
		$		6,696,258
TOTAL INVESTMENT COMPANIES		$		6,696,258
Total Investments		$		6,696,258
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(875	)
TOTAL NET ASSETS - 100.00%		$		6,695,383


Schedule of Investments
Principal LifeTime 2030 Fund
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—	17,760,431	$	283,440	679,670		$	10,720	17,080,761	$	272,653
Bond Market Index Fund	—		—	26,349,907		293,430	2,597,133			28,836	23,752,774		264,598
Core Plus Bond Fund	72,026,557		782,059	17,694,774		193,679	10,021,026			109,419	79,700,305		866,289
Core Plus Bond Fund I	30,575,625		331,226	—		—	30,575,625			343,935	—		—
Diversified International Fund	38,547,017		505,280	6,722,838		79,935	4,318,288			50,338	40,951,567		534,825
Diversified Real Asset Fund	12,908,360		143,178	12,611,637		152,633	1,820,658			21,610	23,699,339		274,285
Equity Income Fund	—		—	9,122,897		242,949	347,685			8,934	8,775,212		233,873
Global Diversified Income Fund	—		—	20,625,751		289,553	730,440			10,037	19,895,311		279,484
Global Multi-Strategy Fund	17,039,127		179,541	3,074,949		34,404	1,871,470			20,854	18,242,606		193,218
Global Opportunities Fund	26,269,818		289,206	4,526,792		53,332	4,178,861			51,102	26,617,749		292,546
Global Real Estate Securities Fund	36,178,638		274,300	2,788,518		26,024	11,280,428			106,669	27,686,728		207,319
High Yield Fund I	12,677,933		120,111	585,214		5,959	13,263,147			135,915	—		—
Inflation Protection Fund	17,054,219		148,967	1,328,950		11,313	1,938,671			16,541	16,444,498		143,752
International Emerging Markets Fund	9,078,789		221,146	623,711		14,603	4,300,816			103,158	5,401,684		131,320
LargeCap Growth Fund	17,321,705		109,525	2,361,540		25,433	19,683,245			223,437	—		—
LargeCap Growth Fund I	58,244,026		463,818	8,590,607		106,957	28,900,876			381,065	37,933,757		284,593
LargeCap S&P 500 Index Fund	33,316,274		306,036	14,773,007		215,254	3,931,791			56,979	44,157,490		468,999
LargeCap Value Fund	25,576,729		246,060	4,400,109		55,981	7,909,586			102,230	22,067,252		201,935
LargeCap Value Fund III	39,165,924		529,933	2,439,181		38,505	24,453,161			387,385	17,151,944		226,850
MidCap Fund	—		—	3,007,158		70,413	121,128			2,740	2,886,030		67,622
MidCap Growth Fund III	17,357,908		172,391	5,332,237		55,092	1,940,004			22,400	20,750,141		205,627
MidCap Value Fund III	10,675,829		170,573	1,518,152		29,476	1,114,613			22,386	11,079,368		179,114
Origin Emerging Markets Fund	—		—	11,362,400		115,776	469,490			4,288	10,892,910		111,333
Overseas Fund	45,370,554		430,414	6,071,669		64,309	4,904,414			53,229	46,537,809		441,339
Preferred Securities Fund	13,376,808		136,449	919,866		9,500	14,296,674			149,100	—		—
SmallCap Growth Fund I	9,320,361		87,207	2,447,930		28,897	1,010,589			13,144	10,757,702		102,976
SmallCap Value Fund II	9,484,574		74,889	1,654,519		21,196	1,002,787			13,508	10,136,306		84,201
		$	5,722,309		$	2,518,043			$	2,449,959		$	6,068,751


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			(67	)		$			—
Bond Market Index Fund			5,409				4						—
Core Plus Bond Fund			21,997				(30	)					—
Core Plus Bond Fund I			—				12,709						—
Diversified International Fund			6,772				(52	)					—
Diversified Real Asset Fund			2,442				84						824
Equity Income Fund			4,082				(142	)					—
Global Diversified Income Fund			8,336				(32	)					—
Global Multi-Strategy Fund			2,228				127						2,339
Global Opportunities Fund			22,967				1,110						10,916
Global Real Estate Securities Fund			8,733				13,664						1,514
High Yield Fund I			1,975				9,845						706
Inflation Protection Fund			1,904				13						—
International Emerging Markets Fund			3,571				(1,271	)					—
LargeCap Growth Fund			315				88,479						20,259
LargeCap Growth Fund I			8,793				94,883						64,396
LargeCap S&P 500 Index Fund			8,646				4,688						—
LargeCap Value Fund			21,623				2,124						17,323
LargeCap Value Fund III			10,680				45,797						4,464
MidCap Fund			—				(51	)					—
MidCap Growth Fund III			17,280				544						26,201
MidCap Value Fund III			8,289				1,451						9,575
Origin Emerging Markets Fund			—				(155	)					—
Overseas Fund			16,736				(155	)					19,410
Preferred Securities Fund			2,839				3,151						2,325
SmallCap Growth Fund I			892				16						21,125
SmallCap Value Fund II			2,803				1,624						11,316
	$		189,312	$			278,358			$			212,693
Amounts in thousands except shares


				Schedule of Investments
				Principal LifeTime 2040 Fund
				October 31, 2015


INVESTMENT COMPANIES - 100.01%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.01%
Bond Market Index Fund ^(a)		9,211,509	$	102,156
Core Plus Bond Fund ^(a)	30,008,733			323,794
Diversified International Fund ^(a)	32,046,469			369,496
Diversified Real Asset Fund ^(a)	12,193,729			134,984
Global Multi-Strategy Fund ^(a)		9,959,184		109,551
Global Opportunities Fund ^(a)	20,281,576			241,553
Global Real Estate Securities Fund ^(a)	24,313,186			226,599
High Yield Fund I ^(a)		8,463,069		81,669
Inflation Protection Fund ^(a)		4,222,674		35,259
International Emerging Markets Fund ^(a)		4,174,608		88,669
LargeCap Growth Fund ^(a)	13,713,635			156,061
LargeCap Growth Fund I ^(a)	34,735,339			468,580
LargeCap S&P 500 Index Fund ^(a)	35,067,635			519,001
LargeCap Value Fund ^(a)	22,839,152			291,199
LargeCap Value Fund III ^(a)	19,770,087			312,170
MidCap Growth Fund III ^(a)	16,445,316			171,360
MidCap Value Fund III ^(a)		8,334,408		159,687
Origin Emerging Markets Fund ^(a),(b)		8,425,573		73,892
Overseas Fund ^(a)	35,109,675			357,065
SmallCap Growth Fund I ^(a)		7,912,144		94,867
SmallCap Value Fund II ^(a)		7,422,460		94,711
		$		4,412,323
TOTAL INVESTMENT COMPANIES		$		4,412,323
Total Investments		$		4,412,323
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(593	)
TOTAL NET ASSETS - 100.00%		$		4,411,730


Schedule of Investments
Principal LifeTime 2040 Fund
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	—	$	—	10,059,823	$	111,960	848,314		$	9,412	9,211,509	$	102,550
Core Plus Bond Fund	22,604,730		245,381	10,389,959		113,697	2,985,956			32,576	30,008,733		326,492
Core Plus Bond Fund I	11,830,686		128,414	—		—	11,830,686			133,218	—		—
Diversified International Fund	30,593,219		376,075	4,677,843		56,096	3,224,593			37,620	32,046,469		394,473
Diversified Real Asset Fund	5,962,170		65,632	7,107,668		85,560	876,109			10,402	12,193,729		140,801
Global Multi-Strategy Fund	9,091,162		95,318	1,845,778		20,630	977,756			10,893	9,959,184		105,113
Global Opportunities Fund	19,807,034		220,608	3,691,009		43,509	3,216,467			39,233	20,281,576		225,433
Global Real Estate Securities Fund	24,739,965		188,770	2,512,456		23,419	2,939,235			27,388	24,313,186		185,229
High Yield Fund I	7,796,152		75,132	2,550,579		25,887	1,883,662			19,258	8,463,069		81,793
Inflation Protection Fund	—		—	4,397,464		37,412	174,790			1,476	4,222,674		35,934
International Emerging Markets Fund	7,397,067		174,553	563,221		13,151	3,785,680			92,408	4,174,608		95,626
LargeCap Growth Fund	14,272,201		94,788	2,586,929		28,176	3,145,495			36,149	13,713,635		88,837
LargeCap Growth Fund I	44,292,560		369,756	7,348,429		91,942	16,905,650			221,347	34,735,339		266,840
LargeCap S&P 500 Index Fund	23,960,154		213,162	13,871,183		205,032	2,763,702			40,079	35,067,635		380,696
LargeCap Value Fund	19,959,207		195,291	5,026,166		64,052	2,146,221			28,406	22,839,152		231,293
LargeCap Value Fund III	30,354,664		411,645	2,440,009		38,481	13,024,586			207,913	19,770,087		264,059
MidCap Growth Fund III	12,191,738		124,047	5,705,090		60,084	1,451,512			16,561	16,445,316		167,802
MidCap Value Fund III	7,050,893		115,468	2,092,936		41,228	809,421			16,172	8,334,408		140,794
Origin Emerging Markets Fund	—		—	8,769,060		89,651	343,487			3,175	8,425,573		86,435
Overseas Fund	31,519,541		310,259	7,067,504		75,979	3,477,370			37,629	35,109,675		348,534
Preferred Securities Fund	6,743,014		67,465	506,646		5,234	7,249,660			75,695	—		—
SmallCap Growth Fund I	6,720,991		64,678	1,907,497		22,609	716,344			9,278	7,912,144		78,013
SmallCap Value Fund II	6,806,620		55,816	1,317,578		16,918	701,738			9,433	7,422,460		63,357
		$	3,592,258		$	1,270,707			$	1,115,721		$	3,810,104


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		1,608	$			2			$			—
Core Plus Bond Fund			8,013				(10	)					—
Core Plus Bond Fund I			—				4,804						—
Diversified International Fund			5,411				(78	)					—
Diversified Real Asset Fund			1,136				11						383
Global Multi-Strategy Fund			1,197				58						1,256
Global Opportunities Fund			17,421				549						8,281
Global Real Estate Securities Fund			6,566				428						1,042
High Yield Fund I			4,523				32						437
Inflation Protection Fund			—				(2	)					—
International Emerging Markets Fund			2,927				330						—
LargeCap Growth Fund			261				2,022						16,795
LargeCap Growth Fund I			6,728				26,489						49,276
LargeCap S&P 500 Index Fund			6,255				2,581						—
LargeCap Value Fund			16,976				356						13,602
LargeCap Value Fund III			8,326				21,846						3,481
MidCap Growth Fund III			12,214				232						18,520
MidCap Value Fund III			5,511				270						6,367
Origin Emerging Markets Fund			—				(41	)					—
Overseas Fund			11,715				(75	)					13,579
Preferred Securities Fund			1,530				2,996						1,179
SmallCap Growth Fund I			647				4						15,330
SmallCap Value Fund II			2,024				56						8,172
	$		120,989	$			62,860			$			157,700
Amounts in thousands except shares


				Schedule of Investments
				Principal LifeTime 2050 Fund
				October 31, 2015


INVESTMENT COMPANIES - 100.01%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.01%
Bond Market Index Fund ^(a)		2,228,942	$	24,719
Core Plus Bond Fund ^(a)		7,618,261		82,201
Diversified International Fund ^(a)	17,375,288			200,337
Diversified Real Asset Fund ^(a)		5,439,170		60,212
Global Multi-Strategy Fund ^(a)		4,103,318		45,137
Global Opportunities Fund ^(a)	12,283,084			146,292
Global Real Estate Securities Fund ^(a)	12,593,506			117,371
High Yield Fund I ^(a)		4,689,868		45,257
International Emerging Markets Fund ^(a)		2,438,665		51,797
LargeCap Growth Fund ^(a)		7,568,932		86,134
LargeCap Growth Fund I ^(a)	20,473,421			276,186
LargeCap S&P 500 Index Fund ^(a)	17,677,678			261,630
LargeCap Value Fund ^(a)	12,599,905			160,649
LargeCap Value Fund III ^(a)	11,965,496			188,935
MidCap Growth Fund III ^(a)		8,864,984		92,373
MidCap Value Fund III ^(a)		4,992,429		95,655
Origin Emerging Markets Fund ^(a),(b)		5,225,385		45,827
Overseas Fund ^(a)	19,413,180			197,432
SmallCap Growth Fund I ^(a)		4,116,633		49,358
SmallCap Value Fund II ^(a)		3,913,376		49,935
		$		2,277,437
TOTAL INVESTMENT COMPANIES		$		2,277,437
Total Investments		$		2,277,437
Liabilities in Excess of Other Assets, Net - (0.01)%		$		(325	)
TOTAL NET ASSETS - 100.00%		$		2,277,112


Schedule of Investments
Principal LifeTime 2050 Fund
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	—	$	—	2,356,151	$	26,311	127,209		$	1,409	2,228,942	$	24,902
Core Plus Bond Fund	3,337,877		36,100	4,798,834		52,650	518,450			5,655	7,618,261		83,094
Core Plus Bond Fund I	2,437,095		26,503	—		—	2,437,095			27,432	—		—
Diversified International Fund	16,279,729		194,661	2,614,938		30,756	1,519,379			17,714	17,375,288		207,681
Diversified Real Asset Fund	2,310,117		25,744	3,450,697		41,504	321,644			3,819	5,439,170		63,429
Global Multi-Strategy Fund	3,465,410		36,139	972,760		10,840	334,852			3,728	4,103,318		43,265
Global Opportunities Fund	10,772,907		121,465	2,530,516		29,948	1,020,339			12,496	12,283,084		138,942
Global Real Estate Securities Fund	13,476,113		103,994	1,812,206		16,885	2,694,813			25,451	12,593,506		96,412
High Yield Fund I	4,016,356		41,019	1,534,012		15,651	860,500			8,801	4,689,868		47,894
International Emerging Markets Fund	3,840,680		92,297	425,205		9,925	1,827,220			44,369	2,438,665		57,969
LargeCap Growth Fund	7,543,771		52,852	1,648,826		18,068	1,623,665			18,405	7,568,932		52,928
LargeCap Growth Fund I	23,044,504		203,165	4,626,839		58,304	7,197,922			94,799	20,473,421		170,989
LargeCap S&P 500 Index Fund	12,276,133		112,661	6,657,729		98,456	1,256,184			18,220	17,677,678		193,478
LargeCap Value Fund	10,259,599		102,609	3,320,976		42,353	980,670			12,895	12,599,905		132,160
LargeCap Value Fund III	16,103,317		218,804	1,751,581		27,633	5,889,402			94,265	11,965,496		160,876
MidCap Growth Fund III	6,172,227		63,385	3,352,957		35,623	660,200			7,445	8,864,984		91,574
MidCap Value Fund III	3,550,422		58,275	1,809,479		35,961	367,472			7,317	4,992,429		86,963
Origin Emerging Markets Fund	—		—	5,382,218		55,187	156,833			1,463	5,225,385		53,721
Overseas Fund	17,129,903		172,781	3,940,057		41,791	1,656,780			17,839	19,413,180		196,724
Preferred Securities Fund	4,312,486		44,284	390,573		4,037	4,703,059			49,075	—		—
SmallCap Growth Fund I	3,325,299		33,530	1,117,089		13,366	325,755			4,177	4,116,633		42,717
SmallCap Value Fund II	3,411,928		29,174	819,731		10,583	318,283			4,259	3,913,376		35,496
		$	1,769,442	$		675,832			$	481,033		$	1,981,214


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		176	$			—			$			—
Core Plus Bond Fund			1,760				(1	)					—
Core Plus Bond Fund I			—				929						—
Diversified International Fund			2,930				(22	)					—
Diversified Real Asset Fund			449				—						151
Global Multi-Strategy Fund			464				14						486
Global Opportunities Fund			9,624				25						4,573
Global Real Estate Securities Fund			3,609				984						576
High Yield Fund I			2,408				25						228
International Emerging Markets Fund			1,548				116						—
LargeCap Growth Fund			140				413						9,005
LargeCap Growth Fund I			3,552				4,319						26,010
LargeCap S&P 500 Index Fund			3,254				581						—
LargeCap Value Fund			8,855				93						7,094
LargeCap Value Fund III			4,483				8,704						1,874
MidCap Growth Fund III			6,274				11						9,513
MidCap Value Fund III			2,818				44						3,255
Origin Emerging Markets Fund			—				(3	)					—
Overseas Fund			6,474				(9	)					7,492
Preferred Securities Fund			937				754						765
SmallCap Growth Fund I			325				(2	)					7,699
SmallCap Value Fund II			1,032				(2	)					4,158
	$		61,112	$			16,973			$			82,879
Amounts in thousands except shares


					Schedule of Investments
			Principal LifeTime Strategic Income Fund
					October 31, 2015


INVESTMENT COMPANIES - 100.01%		Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)			707,807	$	11,444
Bond Market Index Fund ^(a)			6,094,487		67,588
Core Plus Bond Fund ^(a)		17,567,841			189,557
Diversified International Fund ^(a)			1,293,787		14,917
Diversified Real Asset Fund ^(a)			1,828,644		20,243
Equity Income Fund ^(a)			1,051,542		27,161
Global Diversified Income Fund ^(a)			5,024,571		68,033
Global Multi-Strategy Fund ^(a)			2,649,468		29,144
Global Opportunities Fund ^(a)			566,428		6,746
Inflation Protection Fund ^(a)			9,964,504		83,203
International Emerging Markets Fund ^(a)			177,231		3,764
LargeCap Growth Fund I ^(a)			989,595		13,350
LargeCap S&P 500 Index Fund ^(a)			1,144,458		16,938
MidCap Fund ^(a)			728,911		16,481
Origin Emerging Markets Fund ^(a),(b)			319,226		2,800
Overseas Fund ^(a)			1,493,099		15,185
Short-Term Income Fund ^(a)		10,093,644			122,840
SmallCap Growth Fund I ^(a)			436,335		5,232
SmallCap Value Fund II ^(a)			427,404		5,455
			$		720,081
TOTAL INVESTMENT COMPANIES			$		720,081
Total Investments			$		720,081
Liabilities in Excess of Other Assets, Net - (0.01)%			$		(108	)
TOTAL NET ASSETS - 100.00%			$		719,973


(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional
	information.
(b)	Non-Income Producing Security



	Portfolio Summary (unaudited)
Fund Type					Percent
Fixed Income Funds					64.33	%
Specialty Funds					16.31	%
Domestic Equity Funds					13.34	%
International Equity Funds					6.03	%
Liabilities in Excess of Other Assets, Net					(0.01	)%
TOTAL NET ASSETS					100.00	%


Schedule of Investments
Principal LifeTime Strategic Income Fund
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	—	$	—	782,071	$	12,343	74,264		$	1,185	707,807	$	11,163
Bond Market Index Fund	—		—	7,190,057		80,120	1,095,570			12,146	6,094,487		67,951
Core Plus Bond Fund	17,850,327		194,204	5,079,911		55,561	5,362,397			58,639	17,567,841		191,117
Core Plus Bond Fund I	9,737,553		103,421	—		—	9,737,553			109,611	—		—
Diversified International Fund	1,438,189		17,695	116,104		1,352	260,506			3,045	1,293,787		16,118
Diversified Real Asset Fund	2,950,247		31,008	237,254		2,870	1,358,857			16,485	1,828,644		18,939
Equity Income Fund	1,947,921		36,952	122,455		3,235	1,018,834			27,646	1,051,542		19,830
Global Diversified Income Fund	3,369,813		35,863	2,544,587		35,707	889,829			12,431	5,024,571		59,147
Global Multi-Strategy Fund	1,984,381		20,357	1,096,295		12,239	431,208			4,796	2,649,468		27,817
Global Opportunities Fund	573,874		6,204	106,128		1,255	113,574			1,377	566,428		6,126
High Yield Fund I	2,744,771		27,191	169,298		1,722	2,914,069			29,854	—		—
Inflation Protection Fund	6,088,608		52,822	5,405,815		46,175	1,529,919			13,003	9,964,504		86,021
International Emerging Markets Fund	198,226		4,756	18,181		425	39,176			907	177,231		4,273
LargeCap Growth Fund I	1,877,365		14,800	293,776		3,661	1,181,546			15,365	989,595		7,293
LargeCap S&P 500 Index Fund	1,281,816		12,455	105,734		1,536	243,092			3,529	1,144,458		10,962
MidCap Fund	940,277		13,859	97,716		2,149	309,082			7,131	728,911		10,674
Origin Emerging Markets Fund	—		—	359,191		3,608	39,965			372	319,226		3,217
Overseas Fund	1,560,063		14,503	223,516		2,370	290,480			3,104	1,493,099		13,814
Short-Term Income Fund	10,891,347		131,273	1,128,676		13,789	1,926,379			23,519	10,093,644		121,537
SmallCap Growth Fund I	394,270		3,388	102,438		1,208	60,373			768	436,335		3,827
SmallCap Value Fund II	416,409		3,362	69,579		891	58,584			778	427,404		3,481
		$	724,113	$		282,216			$	345,691		$	683,307


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$			5			$			—
Bond Market Index Fund			1,555				(23	)					—
Core Plus Bond Fund			5,401				(9	)					—
Core Plus Bond Fund I			—				6,190						—
Diversified International Fund			256				116						—
Diversified Real Asset Fund			566				1,546						192
Equity Income Fund			781				7,289						—
Global Diversified Income Fund			3,338				8						834
Global Multi-Strategy Fund			263				17						277
Global Opportunities Fund			511				44						243
High Yield Fund I			432				941						156
Inflation Protection Fund			687				27						—
International Emerging Markets Fund			79				(1	)					—
LargeCap Growth Fund I			288				4,197						2,114
LargeCap S&P 500 Index Fund			338				500						—
MidCap Fund			91				1,797						971
Origin Emerging Markets Fund			—				(19	)					—
Overseas Fund			583				45						680
Short-Term Income Fund			2,055				(6	)					32
SmallCap Growth Fund I			38				(1	)					909
SmallCap Value Fund II			125				6						506
	$		17,387	$			22,669			$			6,914
Amounts in thousands except shares


				Schedule of Investments
				SAM Balanced Portfolio
				October 31, 2015


INVESTMENT COMPANIES - 100.08%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.08%
Blue Chip Fund ^(a)	14,009,512		$	226,534
Diversified International Fund ^(a)	36,812,849			424,452
EDGE MidCap Fund ^(a),(b)		6,304,643		66,766
Equity Income Fund ^(a)	20,151,026			520,501
Global Diversified Income Fund ^(a)		7,163,129		96,989
Global Multi-Strategy Fund ^(a)	33,503,805			368,542
Global Real Estate Securities Fund ^(a)	10,803,107			100,685
Government & High Quality Bond Fund ^(a)	33,048,958			361,555
High Yield Fund ^(a)	16,952,486			120,702
Income Fund ^(a)	72,978,319			694,024
Inflation Protection Fund ^(a)	10,237,466			85,483
International Emerging Markets Fund ^(a)		4,083,751		86,739
LargeCap Growth Fund ^(a)	39,587,854			450,510
LargeCap Value Fund ^(a)	22,475,681			286,565
MidCap Fund ^(a)	13,257,768			299,758
MidCap Value Fund I ^(a)		6,350,977		90,565
Preferred Securities Fund ^(a)		2,010,544		20,588
Principal Capital Appreciation Fund ^(a)		2,776,322		167,162
Short-Term Income Fund ^(a)	17,735,949			215,846
SmallCap Growth Fund I ^(a)		346,424		4,153
SmallCap Value Fund II ^(a)		2,628,505		33,540
Small-MidCap Dividend Income Fund ^(a)	10,912,791			145,577
		$		4,867,236
TOTAL INVESTMENT COMPANIES		$		4,867,236
Total Investments		$		4,867,236
Liabilities in Excess of Other Assets, Net - (0.08)%		$		(3,884	)
TOTAL NET ASSETS - 100.00%		$		4,863,352


Schedule of Investments
SAM Balanced Portfolio
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	8,330,072	$	107,294	6,457,022	$	100,986	777,582		$	12,393	14,009,512	$	195,994
Core Plus Bond Fund	5,091,556		55,856	26,976		296	5,118,532			55,947	—		—
Diversified International Fund	36,041,816		344,487	14,449,023		174,951	13,677,990			155,474	36,812,849		371,867
EDGE MidCap Fund	—		—	6,304,643		63,066	—			—	6,304,643		63,066
Equity Income Fund	23,640,900		361,003	780,369		20,320	4,270,243			111,785	20,151,026		300,512
Global Diversified Income Fund	4,920,716		65,850	2,588,902		36,452	346,489			4,819	7,163,129		97,283
Global Multi-Strategy Fund	20,232,264		212,386	14,027,523		155,090	755,982			8,367	33,503,805		358,983
Global Real Estate Securities Fund	5,413,459		43,642	6,532,913		62,007	1,143,265			10,505	10,803,107		94,563
Government & High Quality Bond	38,109,998		403,637	1,777,484		19,625	6,838,524			75,575	33,048,958		348,336
Fund
High Yield Fund	11,465,281		81,284	6,440,283		47,592	953,078			7,020	16,952,486		121,471
Income Fund	68,042,574		629,808	8,061,262		78,322	3,125,517			30,084	72,978,319		677,247
Inflation Protection Fund	—		—	10,361,529		88,652	124,063			1,044	10,237,466		87,583
International Emerging Markets Fund	4,155,230		92,150	1,893,422		44,453	1,964,901			45,978	4,083,751		87,721
LargeCap Growth Fund	32,451,586		212,413	9,323,069		105,132	2,186,801			24,949	39,587,854		291,474
LargeCap Growth Fund II	10,045,403		59,410	—		—	10,045,403			110,426	—		—
LargeCap Value Fund	37,824,306		446,386	5,132,166		65,005	20,480,791			263,725	22,475,681		245,132
MidCap Fund	5,950,853		51,854	7,877,913		175,488	570,998			13,196	13,257,768		214,378
MidCap Value Fund I	—		—	6,624,626		97,904	273,649			4,074	6,350,977		93,353
Preferred Securities Fund	5,629,925		40,804	179,558		1,851	3,798,939			39,600	2,010,544		12,806
Principal Capital Appreciation Fund	5,541,885		175,631	251,805		14,554	3,017,368			177,910	2,776,322		76,624
Short-Term Income Fund	13,665,438		163,324	5,027,866		61,426	957,355			11,679	17,735,949		212,984
SmallCap Growth Fund I	7,470,283		75,659	60,786		703	7,184,645			98,858	346,424		3,508
SmallCap Value Fund II	9,203,656		102,349	291,505		3,675	6,866,656			94,775	2,628,505		26,299
Small-MidCap Dividend Income Fund	7,403,427		74,584	3,864,200		53,080	354,836			4,936	10,912,791		122,666
		$	3,799,811		$	1,470,630			$	1,363,119		$	4,103,850


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		5,346	$			107			$			1,342
Core Plus Bond Fund			191				(205	)					—
Diversified International Fund			6,069				7,903						—
EDGE MidCap Fund			—				—						—
Equity Income Fund			12,798				30,974						—
Global Diversified Income Fund			5,134				(200	)					1,729
Global Multi-Strategy Fund			3,275				(126	)					3,417
Global Real Estate Securities Fund			2,389				(581	)					309
Government & High Quality Bond Fund			11,115				649						—
High Yield Fund			7,562				(385	)					814
Income Fund			23,568				(799	)					—
Inflation Protection Fund			790				(25	)					—
International Emerging Markets Fund			1,525				(2,904	)					—
LargeCap Growth Fund			702				(1,122	)					45,168
LargeCap Growth Fund II			—				51,016						—
LargeCap Value Fund			32,002				(2,534	)					25,663
MidCap Fund			1,286				232						13,650
MidCap Value Fund I			427				(477	)					692
Preferred Securities Fund			1,233				9,751						338
Principal Capital Appreciation Fund			3,309				64,349						9,817
Short-Term Income Fund			3,452				(87	)					54
SmallCap Growth Fund I			29				26,004						675
SmallCap Value Fund II			729				15,050						2,945
Small-MidCap Dividend Income Fund			3,920				(62	)					3,031
	$		126,851	$			196,528			$			109,644
Amounts in thousands except shares


					Schedule of Investments
			SAM Conservative Balanced Portfolio
					October 31, 2015


INVESTMENT COMPANIES - 100.06%		Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.06%
Blue Chip Fund ^(a)			2,942,144	$	47,575
Core Plus Bond Fund ^(a)			2,969,703		32,043
Diversified International Fund ^(a)			8,606,876		99,237
EDGE MidCap Fund ^(a),(b)			1,477,312		15,645
Equity Income Fund ^(a)			4,329,157		111,822
Global Diversified Income Fund ^(a)			4,050,773		54,848
Global Multi-Strategy Fund ^(a)			8,032,405		88,356
Global Real Estate Securities Fund ^(a)			2,581,450		24,059
Government & High Quality Bond Fund ^(a)		19,080,448			208,740
High Yield Fund ^(a)		11,468,536			81,656
Income Fund ^(a)		37,589,713			357,478
Inflation Protection Fund ^(a)			4,981,570		41,596
International Emerging Markets Fund ^(a)			974,768		20,704
LargeCap Growth Fund ^(a)			9,946,846		113,195
LargeCap Value Fund ^(a)			5,356,033		68,289
MidCap Fund ^(a)			2,735,873		61,858
MidCap Value Fund I ^(a)			2,190,714		31,240
Preferred Securities Fund ^(a)			829,375		8,493
Principal Capital Appreciation Fund ^(a)			721,736		43,456
Short-Term Income Fund ^(a)		10,364,304			126,134
SmallCap Growth Fund I ^(a)			138,848		1,665
SmallCap Value Fund II ^(a)			516,553		6,591
Small-MidCap Dividend Income Fund ^(a)			2,523,492		33,663
			$		1,678,343
TOTAL INVESTMENT COMPANIES			$		1,678,343
Total Investments			$		1,678,343
Liabilities in Excess of Other Assets, Net - (0.06)%			$		(928	)
TOTAL NET ASSETS - 100.00%			$		1,677,415


(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional
	information.
(b)	Non-Income Producing Security



	Portfolio Summary (unaudited)
Fund Type					Percent
Fixed Income Funds					51.04	%
Domestic Equity Funds					31.90	%
International Equity Funds					8.58	%
Specialty Funds					8.54	%
Liabilities in Excess of Other Assets, Net					(0.06	)%
TOTAL NET ASSETS					100.00	%


Schedule of Investments
SAM Conservative Balanced Portfolio
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	1,890,265	$	24,085	1,191,873	$	18,664	139,994		$	2,223	2,942,144	$	40,516
Core Plus Bond Fund	3,508,758		38,490	96,996		1,061	636,051			6,945	2,969,703		32,558
Diversified International Fund	8,015,503		75,544	3,664,527		44,254	3,073,154			34,933	8,606,876		86,541
EDGE MidCap Fund	—		—	1,477,312		14,789	—			—	1,477,312		14,789
Equity Income Fund	5,354,789		86,560	310,593		8,049	1,336,225			35,213	4,329,157		66,382
Global Diversified Income Fund	2,749,110		37,173	1,435,075		20,344	133,412			1,846	4,050,773		55,561
Global Multi-Strategy Fund	5,919,934		62,816	2,395,273		26,494	282,802			3,139	8,032,405		86,140
Global Real Estate Securities Fund	1,747,663		14,094	1,300,490		12,278	466,703			4,290	2,581,450		21,873
Government & High Quality Bond	21,142,894		227,777	1,394,056		15,394	3,456,502			38,217	19,080,448		204,882
Fund
High Yield Fund	6,581,494		48,282	5,472,848		40,374	585,806			4,318	11,468,536		84,090
Income Fund	38,223,422		360,765	2,792,334		27,095	3,426,043			33,151	37,589,713		353,891
Inflation Protection Fund	—		—	5,087,020		43,603	105,450			892	4,981,570		42,694
International Emerging Markets Fund	900,752		18,710	502,858		11,783	428,842			9,996	974,768		20,064
LargeCap Growth Fund	7,478,656		54,341	3,036,621		34,428	568,431			6,524	9,946,846		81,996
LargeCap Growth Fund II	2,234,944		14,804	—		—	2,234,944			24,595	—		—
LargeCap Value Fund	8,788,787		101,836	1,327,848		16,819	4,760,602			61,478	5,356,033		57,017
MidCap Fund	1,342,112		14,880	1,517,311		33,718	123,550			2,856	2,735,873		45,772
MidCap Value Fund I	—		—	2,190,714		32,890	—			—	2,190,714		32,890
Preferred Securities Fund	3,118,200		26,263	82,257		849	2,371,082			24,710	829,375		5,404
Principal Capital Appreciation Fund	1,257,119		40,956	82,050		4,766	617,433			35,943	721,736		21,250
Short-Term Income Fund	7,796,198		93,106	3,007,077		36,752	438,971			5,355	10,364,304		124,461
SmallCap Growth Fund I	1,631,306		17,047	24,363		282	1,516,821			20,935	138,848		1,408
SmallCap Value Fund II	1,985,144		22,016	56,614		714	1,525,205			21,129	516,553		5,141
Small-MidCap Dividend Income Fund	1,719,512		17,499	883,833		12,071	79,853			1,117	2,523,492		28,444
		$	1,397,044	$		457,471			$	379,805		$	1,513,764


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		1,071	$			(10	)		$			269
Core Plus Bond Fund			872				(48	)					—
Diversified International Fund			1,335				1,676						—
EDGE MidCap Fund			—				—						—
Equity Income Fund			2,605				6,986						—
Global Diversified Income Fund			2,868				(110	)					955
Global Multi-Strategy Fund			885				(31	)					917
Global Real Estate Securities Fund			659				(209	)					89
Government & High Quality Bond Fund			6,298				(72	)					—
High Yield Fund			4,898				(248	)					525
Income Fund			12,176				(818	)					—
Inflation Protection Fund			443				(17	)					—
International Emerging Markets Fund			325				(433	)					—
LargeCap Growth Fund			173				(249	)					11,132
LargeCap Growth Fund II			—				9,791						—
LargeCap Value Fund			7,488				(160	)					6,004
MidCap Fund			250				30						2,652
MidCap Value Fund I			353				—						580
Preferred Securities Fund			552				3,002						141
Principal Capital Appreciation Fund			825				11,471						2,448
Short-Term Income Fund			1,982				(42	)					30
SmallCap Growth Fund I			11				5,014						271
SmallCap Value Fund II			142				3,540						572
Small-MidCap Dividend Income Fund			881				(9	)					679
	$		47,092	$			39,054			$			27,264
Amounts in thousands except shares


				Schedule of Investments
		SAM Conservative Growth Portfolio
				October 31, 2015


INVESTMENT COMPANIES - 100.07%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.07%
Blue Chip Fund ^(a)	11,633,252		$	188,110
Diversified International Fund ^(a)	31,070,397			358,242
Diversified Real Asset Fund ^(a)		9,371,600		103,744
EDGE MidCap Fund ^(a),(b)		5,465,680		57,882
Equity Income Fund ^(a)	13,840,481			357,500
Global Multi-Strategy Fund ^(a)	28,317,124			311,488
Global Real Estate Securities Fund ^(a)		8,806,142		82,073
Government & High Quality Bond Fund ^(a)		7,101,627		77,692
High Yield Fund ^(a)		2,714,830		19,330
Income Fund ^(a)	17,404,253			165,514
LargeCap Growth Fund ^(a)	34,300,020			390,334
LargeCap Value Fund ^(a)	22,838,239			291,187
MidCap Fund ^(a)	12,146,404			274,630
MidCap Value Fund I ^(a)		5,752,349		82,028
Origin Emerging Markets Fund ^(a),(b)		7,214,325		63,270
Preferred Securities Fund ^(a)		336,112		3,442
Principal Capital Appreciation Fund ^(a)		2,669,715		160,743
Short-Term Income Fund ^(a)		3,966,906		48,277
SmallCap Growth Fund I ^(a)		522,274		6,262
SmallCap Value Fund II ^(a)		1,264,876		16,140
Small-MidCap Dividend Income Fund ^(a)		9,664,835		128,929
		$		3,186,817
TOTAL INVESTMENT COMPANIES		$		3,186,817
Total Investments		$		3,186,817
Liabilities in Excess of Other Assets, Net - (0.07)%		$		(2,385	)
TOTAL NET ASSETS - 100.00%		$		3,184,432


Schedule of Investments
SAM Conservative Growth Portfolio
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015		2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	7,149,147	$	91,484	5,291,032	$	82,865	806,927		$	12,746	11,633,252	$	161,606
Diversified International Fund	31,225,189		306,933	12,837,725		155,629	12,992,517			147,581	31,070,397		320,387
Diversified Real Asset Fund	3,693,377		41,033	5,938,156		72,741	259,933			3,084	9,371,600		110,525
EDGE MidCap Fund	—		—	5,465,680		54,660	—			—	5,465,680		54,660
Equity Income Fund	21,119,412		326,475	496,345		12,989	7,775,276			203,884	13,840,481		203,372
Global Multi-Strategy Fund	15,123,053		158,219	14,468,758		159,838	1,274,687			14,085	28,317,124		303,779
Global Real Estate Securities Fund	3,828,640		29,913	6,510,396		61,387	1,532,894			14,038	8,806,142		76,456
Government & High Quality Bond	7,926,599		82,764	292,224		3,226	1,117,196			12,334	7,101,627		74,055
Fund
High Yield Fund	2,490,537		16,579	311,457		2,291	87,164			623	2,714,830		18,184
Income Fund	16,436,805		149,594	3,284,077		31,634	2,316,629			22,478	17,404,253		158,615
International Emerging Markets Fund	3,636,303		86,327	57,946		1,345	3,694,249			86,862	—		—
LargeCap Growth Fund	28,991,788		202,795	7,719,084		87,191	2,410,852			27,427	34,300,020		260,952
LargeCap Growth Fund II	7,982,034		49,517	—		—	7,982,034			87,817	—		—
LargeCap Value Fund	32,588,127		383,260	4,201,599		53,175	13,951,487			178,809	22,838,239		254,579
MidCap Fund	4,889,848		41,536	7,885,271		175,659	628,715			14,334	12,146,404		203,003
MidCap Value Fund I	—		—	5,752,349		87,153	—			—	5,752,349		87,153
Origin Emerging Markets Fund	—		—	7,214,325		70,969	—			—	7,214,325		70,969
Preferred Securities Fund	1,556,237		11,345	35,867		371	1,255,992			13,101	336,112		2,051
Principal Capital Appreciation Fund	4,889,573		153,129	212,213		12,284	2,432,071			144,908	2,669,715		75,525
Short-Term Income Fund	3,052,997		36,349	1,038,774		12,684	124,865			1,522	3,966,906		47,502
SmallCap Growth Fund I	6,167,699		61,971	91,642		1,060	5,737,067			79,129	522,274		5,289
SmallCap Value Fund II	7,988,977		88,769	139,187		1,755	6,863,288			94,998	1,264,876		12,648
Small-MidCap Dividend Income Fund	6,372,977		64,082	3,569,746		49,108	277,888			3,864	9,664,835		109,273
		$	2,382,074		$	1,190,014			$	1,163,624		$	2,610,583


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		4,493	$			3			$			1,128
Diversified International Fund			5,243				5,406						—
Diversified Real Asset Fund			1,835				(165	)					620
EDGE MidCap Fund			—				—						—
Equity Income Fund			9,828				67,792						—
Global Multi-Strategy Fund			2,495				(193	)					2,619
Global Real Estate Securities Fund			2,138				(806	)					288
Government & High Quality Bond Fund			2,424				399						—
High Yield Fund			1,227				(63	)					123
Income Fund			5,228				(135	)					—
International Emerging Markets Fund			1,345				(810	)					—
LargeCap Growth Fund			621				(1,607	)					39,948
LargeCap Growth Fund II			—				38,300						—
LargeCap Value Fund			27,759				(3,047	)					22,257
MidCap Fund			1,193				142						12,677
MidCap Value Fund I			1,353				—						2,233
Origin Emerging Markets Fund			—				—						—
Preferred Securities Fund			237				3,436						57
Principal Capital Appreciation Fund			2,848				55,020						8,449
Short-Term Income Fund			769				(9	)					12
SmallCap Growth Fund I			43				21,387						1,017
SmallCap Value Fund II			348				17,122						1,406
Small-MidCap Dividend Income Fund			3,474				(53	)					2,682
	$		74,901	$			202,119			$			95,516
Amounts in thousands except shares


				Schedule of Investments
				SAM Flexible Income Portfolio
				October 31, 2015


INVESTMENT COMPANIES - 100.06%	Shares Held			Value (000's)

Principal Funds, Inc. Institutional Class - 100.06%
Core Plus Bond Fund ^(a)		4,612,225	$	49,766
Diversified International Fund ^(a)		4,826,950		55,655
Equity Income Fund ^(a)		8,810,375		227,572
Global Diversified Income Fund ^(a)	10,814,423			146,427
Global Real Estate Securities Fund ^(a)		2,476,400		23,080
Government & High Quality Bond Fund ^(a)	21,722,756			237,647
High Yield Fund ^(a)	25,136,571			178,972
Income Fund ^(a)	73,671,795			700,619
Inflation Protection Fund ^(a)	11,430,283			95,443
International Emerging Markets Fund ^(a)		1,232,779		26,184
LargeCap Growth Fund ^(a)		8,176,250		93,046
LargeCap Value Fund ^(a)		7,178,374		91,524
Preferred Securities Fund ^(a)		1,134,487		11,617
Short-Term Income Fund ^(a)	17,646,361			214,756
SmallCap Growth Fund I ^(a)		173,761		2,083
Small-MidCap Dividend Income Fund ^(a)		7,685,268		102,522
		$		2,256,913
TOTAL INVESTMENT COMPANIES		$		2,256,913
Total Investments		$		2,256,913
Liabilities in Excess of Other Assets, Net - (0.06)%		$		(1,447	)
TOTAL NET ASSETS - 100.00%		$		2,255,466


Schedule of Investments
SAM Flexible Income Portfolio
October 31, 2015


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases	Sales			Sales	2015			2015
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares			Cost
Blue Chip Fund	1,350,809	$	17,347	55,230	$	825	1,406,039		$	22,797	—		$	—
Core Plus Bond Fund	7,035,669		76,956	488,547		5,344	2,911,991			31,814	4,612,225			50,254
Diversified International Fund	4,358,106		39,535	3,624,420		43,830	3,155,576			35,699	4,826,950			52,793
Equity Income Fund	6,391,396		107,829	2,585,247		68,807	166,268			4,379	8,810,375			172,107
Global Diversified Income Fund	6,735,478		91,613	4,215,020		59,603	136,075			1,885	10,814,423			149,173
Global Real Estate Securities Fund	2,305,591		17,680	356,535		3,283	185,726			1,764	2,476,400			19,254
Government & High Quality Bond	26,445,155		286,309	2,645,210		29,245	7,367,609			81,503	21,722,756			233,005
Fund
High Yield Fund	13,450,642		99,129	12,312,471		90,340	626,542			4,586	25,136,571			184,489
Income Fund	62,497,941		591,233	12,612,502		122,334	1,438,648			13,867	73,671,795			699,204
Inflation Protection Fund	—		—	11,539,089		99,181	108,806			921	11,430,283			98,236
International Emerging Markets Fund	797,008		17,639	724,859		16,819	289,088			6,747	1,232,779			27,294
LargeCap Growth Fund	7,040,783		56,547	1,652,620		18,096	517,153			6,022	8,176,250			68,734
LargeCap Value Fund	8,279,764		99,077	1,915,078		24,335	3,016,468			38,987	7,178,374			83,384
Preferred Securities Fund	7,577,507		63,839	437,124		4,526	6,880,144			71,290	1,134,487			6,502
Principal Capital Appreciation Fund	644,235		21,615	—		—	644,235			39,128	—			—
Short-Term Income Fund	14,156,370		169,128	3,940,948		48,172	450,957			5,501	17,646,361			211,749
SmallCap Growth Fund I	1,509,044		16,848	37,598		435	1,372,881			18,804	173,761			1,772
Small-MidCap Dividend Income Fund	6,464,859		71,248	1,284,519		17,426	64,110			888	7,685,268			87,751
		$	1,843,572	$		652,601			$	386,582		$	2,145,701


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		500	$			4,625			$				125
Core Plus Bond Fund			1,374				(232	)						—
Diversified International Fund			683				5,127							—
Equity Income Fund			5,068				(150	)						—
Global Diversified Income Fund			7,324				(158	)					2,353
Global Real Estate Securities Fund			607				55							97
Government & High Quality Bond Fund			7,085				(1,046	)						—
High Yield Fund			10,142				(394	)						867
Income Fund			22,301				(496	)						—
Inflation Protection Fund			1,109				(24	)						—
International Emerging Markets Fund			304				(417	)						—
LargeCap Growth Fund			132				113						8,505
LargeCap Value Fund			7,128				(1,041	)					5,712
Preferred Securities Fund			1,527				9,427							536
Principal Capital Appreciation Fund			—				17,513							—
Short-Term Income Fund			3,298				(50	)						49
SmallCap Growth Fund I			14				3,293							322
Small-MidCap Dividend Income Fund			2,578				(35	)					1,922
	$		71,174	$			36,110			$			20,488
Amounts in thousands except shares


Schedule of Investments
SAM Strategic Growth Portfolio
October 31, 2015


	October 31,		October 31,									October 31,		October 31,
Affiliated Securities	2014		2014	Purchases		Purchases		Sales			Sales	2015			2015
	Shares		Cost	Shares			Cost	Shares			Proceeds	Shares			Cost
Blue Chip Fund	5,541,109	$	70,608	—		$	—	5,541,109		$	87,161	—		$	—
Diversified International Fund	15,786,727		147,133	22,387,991			271,806	7,664,020			87,234	30,510,698			341,074
Equity Income Fund	14,709,390		236,475	319,384			8,339	5,262,763			139,860	9,766,011			145,610
Global Multi-Strategy Fund	—		—	14,505,125			160,046	575,747			6,374	13,929,378			153,599
Global Real Estate Securities Fund	3,758,359		28,263	5,458,039			51,674	658,652			6,027	8,557,746			73,527
International Emerging Markets Fund	3,741,082		87,609	69,308			1,621	3,810,390			89,704	—			—
LargeCap Growth Fund	30,647,271		238,736	3,408,687			36,390	12,667,615			147,912	21,388,343			145,101
LargeCap Growth Fund II	4,750,807		28,355	—			—	4,750,807			52,163	—			—
LargeCap Value Fund	27,454,655		330,734	3,487,747			44,270	14,019,265			179,436	16,923,137			190,935
MidCap Fund	1,432,945		12,113	—			—	1,432,945			32,010	—			—
MidCap Value Fund I	—		—	8,171,402			131,452	156,583			2,205	8,014,819			128,848
Origin Emerging Markets Fund	—		—	11,604,666			114,172	110,783			1,042	11,493,883			113,068
Principal Capital Appreciation Fund	3,625,414		116,449	3,058,140			185,377	1,785,470			108,394	4,898,084			192,130
SmallCap Growth Fund I	3,530,582		35,165	552,899			6,397	2,855,582			38,368	1,227,899			12,083
SmallCap Value Fund II	5,248,559		54,283	353,608			4,458	2,910,805			39,964	2,691,362			25,000
Small-MidCap Dividend Income Fund	4,112,942		41,217	2,121,833			29,329	352,240			4,854	5,882,535			65,583
		$	1,427,140		$	1,045,331				$	1,022,708		$	1,586,558


						Realized Gain/Loss						Realized Gain from
			Income				on Investments				Capital Gain Distributions
Blue Chip Fund	$		—	$				16,553			$				—
Diversified International Fund			2,628					9,369							—
Equity Income Fund			6,862					40,656							—
Global Multi-Strategy Fund			283					(73	)						292
Global Real Estate Securities Fund			1,912					(383	)						253
International Emerging Markets Fund			1,377					474							—
LargeCap Growth Fund			542					17,887						34,892
LargeCap Growth Fund II			—					23,808							—
LargeCap Value Fund			22,973					(4,633	)					18,439
MidCap Fund			—					19,897							—
MidCap Value Fund I			5,466					(399	)					9,019
Origin Emerging Markets Fund			—					(62	)						—
Principal Capital Appreciation Fund			4,775					(1,302	)					14,168
SmallCap Growth Fund I			259					8,889						6,137
SmallCap Value Fund II			878					6,223						3,543
Small-MidCap Dividend Income Fund			2,120					(109	)					1,650
	$		50,075	$				136,795			$			88,393
Amounts in thousands except shares


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31:


		Net Asset		Net	Net Realized				Dividends		Distributions		Total
		Value,		Investment	and Unrealized			Total From	from Net		from		Dividends					Net Asset
		Beginning		Income	Gain (Loss) on			Investment	Investment		Realized		and				Value, End
		of Period		(Loss)(a)	Investments			Operations	Income		Gains			Distributions				of Period
PRINCIPAL LIFETIME 2010 FUND
Class A shares
2015	$	13.76	$	0.26	($0.22	)	$	0.04	($0.25	)	$–		($0.25		)	$	13.55
2014		13.18		0.23	0.57			0.80	(0.22	)	–		(0.22		)		13.76
2013		12.18		0.24	1.01			1.25	(0.25	)	–		(0.25		)		13.18
2012		11.40		0.20	0.82			1.02	(0.24	)	–		(0.24		)		12.18
2011		11.19		0.25	0.21			0.46	(0.25	)	–		(0.25		)		11.40
PRINCIPAL LIFETIME 2020 FUND
Class A shares
2015		14.99		0.33	(0.25	)		0.08	(0.31	)	(0.52	)	(0.83		)		14.24
2014		14.32		0.23	0.82			1.05	(0.23	)	(0.15	)	(0.38		)		14.99
2013		12.66		0.24	1.67			1.91	(0.25	)	–		(0.25		)		14.32
2012		11.69		0.20	1.00			1.20	(0.23	)	–		(0.23		)		12.66
2011		11.52		0.21	0.18			0.39	(0.22	)	–		(0.22		)		11.69
PRINCIPAL LIFETIME 2030 FUND
Class A shares
2015		15.24		0.34	(0.22	)		0.12	(0.34	)	(0.58	)	(0.92		)		14.44
2014		14.48		0.23	0.95			1.18	(0.23	)	(0.19	)	(0.42		)		15.24
2013		12.45		0.23	2.04			2.27	(0.24	)	–		(0.24		)		14.48
2012		11.49		0.19	0.99			1.18	(0.22	)	–		(0.22		)		12.45
2011		11.30		0.17	0.21			0.38	(0.19	)	–		(0.19		)		11.49


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31:


		Net Asset		Net	Net Realized				Dividends		Distributions		Total
		Value,		Investment	and Unrealized			Total From	from Net		from		Dividends			Net Asset
		Beginning		Income	Gain (Loss) on			Investment	Investment		Realized		and			Value, End
		of Period		(Loss)(a)	Investments			Operations	Income		Gains		Distributions			of Period
PRINCIPAL LIFETIME 2040 FUND
Class A shares
2015	$	15.50	$	0.34	($0.18	)	$	0.16	($0.36	)	($0.63	)	($0.99	)	$	14.67
2014		14.80		0.21	1.09			1.30	(0.23	)	(0.37	)	(0.60	)		15.50
2013		12.42		0.22	2.39			2.61	(0.23	)	–		(0.23	)		14.80
2012		11.42		0.17	1.03			1.20	(0.20	)	–		(0.20	)		12.42
2011		11.23		0.15	0.20			0.35	(0.16	)	–		(0.16	)		11.42
PRINCIPAL LIFETIME 2050 FUND
Class A shares
2015		15.31		0.34	(0.17	)		0.17	(0.36	)	(0.61	)	(0.97	)		14.51
2014		14.61		0.20	1.13			1.33	(0.22	)	(0.41	)	(0.63	)		15.31
2013		12.11		0.19	2.53			2.72	(0.22	)	–		(0.22	)		14.61
2012		11.09		0.16	1.03			1.19	(0.17	)	–		(0.17	)		12.11
2011		10.90		0.14	0.19			0.33	(0.14	)	–		(0.14	)		11.09
PRINCIPAL LIFETIME STRATEGIC INCOME FUND
Class A shares
2015		12.30		0.23	(0.23	)		–	(0.21	)	–		(0.21	)		12.09
2014		11.94		0.22	0.36			0.58	(0.22	)	–		(0.22	)		12.30
2013		11.60		0.26	0.34			0.60	(0.26	)	–		(0.26	)		11.94
2012		11.00		0.21	0.67			0.88	(0.28	)	–		(0.28	)		11.60
2011		10.93		0.31	0.06			0.37	(0.30	)	–		(0.30	)		11.00


						FINANCIAL HIGHLIGHTS
						PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31:


			Net Asset		Net	Net Realized				Dividends		Distributions		Total
			Value,		Investment	and Unrealized			Total From	from Net		from		Dividends			Net Asset
			Beginning		Income	Gain (Loss) on			Investment	Investment		Realized		and			Value, End
			of Period		(Loss)(a)	Investments			Operations	Income		Gains		Distributions			of Period
SAM BALANCED PORTFOLIO
Class A shares
2015		$	16.39	$	0.31	($0.14	)	$	0.17	($0.31	)	($0.38	)	($0.69	)	$	15.87
2014			15.60		0.26	1.04			1.30	(0.26	)	(0.25	)	(0.51	)		16.39
2013			13.70		0.26	1.90			2.16	(0.26	)	–		(0.26	)		15.60
2012			12.67		0.26	1.03			1.29	(0.26	)	–		(0.26	)		13.70
2011			12.45		0.28	0.22			0.50	(0.28	)	–		(0.28	)		12.67
Class C shares
2015			16.20		0.18	(0.12	)		0.06	(0.20	)	(0.38	)	(0.58	)		15.68
2014			15.43		0.14	1.02			1.16	(0.14	)	(0.25	)	(0.39	)		16.20
2013			13.55		0.15	1.89			2.04	(0.16	)	–		(0.16	)		15.43
2012			12.54		0.16	1.01			1.17	(0.16	)	–		(0.16	)		13.55
2011			12.33		0.19	0.21			0.40	(0.19	)	–		(0.19	)		12.54
Class P shares
2015	(d)		15.01		0.04	0.65			0.69	(0.04	)	–		(0.04	)		15.66
SAM CONSERVATIVE BALANCED PORTFOLIO
Class A shares
2015			12.41		0.26	(0.16	)		0.10	(0.27	)	(0.20	)	(0.47	)		12.04
2014			12.05		0.25	0.58			0.83	(0.24	)	(0.23	)	(0.47	)		12.41
2013			11.22		0.25	0.89			1.14	(0.25	)	(0.06	)	(0.31	)		12.05
2012			10.56		0.27	0.70			0.97	(0.26	)	(0.05	)	(0.31	)		11.22
2011			10.46		0.30	0.10			0.40	(0.30	)	–		(0.30	)		10.56
Class C shares
2015			12.30		0.17	(0.15	)		0.02	(0.19	)	(0.20	)	(0.39	)		11.93
2014			11.95		0.16	0.58			0.74	(0.16	)	(0.23	)	(0.39	)		12.30
2013			11.13		0.16	0.89			1.05	(0.17	)	(0.06	)	(0.23	)		11.95
2012			10.48		0.18	0.70			0.88	(0.18	)	(0.05	)	(0.23	)		11.13
2011			10.38		0.22	0.10			0.32	(0.22	)	–		(0.22	)		10.48
Class P shares
2015	(d)		11.63		0.04	0.32			0.36	(0.05	)	–		(0.05	)		11.94


						FINANCIAL HIGHLIGHTS
						PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31:


			Net Asset		Net	Net Realized					Dividends		Distributions		Total
			Value,		Investment	and Unrealized			Total From		from Net		from		Dividends			Net Asset
			Beginning		Income	Gain (Loss) on			Investment		Investment		Realized		and			Value, End
			of Period		(Loss)(a)	Investments			Operations		Income		Gains		Distributions			of Period
SAM CONSERVATIVE GROWTH PORTFOLIO
Class A shares
2015		$	18.86	$	0.29	($0.11	)	$	0.18		($0.30	)	($0.58	)	($0.88	)	$	18.16
2014			17.53		0.21	1.50			1.71		(0.23	)	(0.15	)	(0.38	)		18.86
2013			14.73		0.22	2.81			3.03		(0.23	)	–		(0.23	)		17.53
2012			13.48		0.19	1.26			1.45		(0.20	)	–		(0.20	)		14.73
2011			13.13		0.19	0.35			0.54		(0.19	)	–		(0.19	)		13.48
Class C shares
2015			17.81		0.15	(0.11	)		0.04		(0.18	)	(0.58	)	(0.76	)		17.09
2014			16.59		0.08	1.40			1.48		(0.11	)	(0.15	)	(0.26	)		17.81
2013			13.95		0.09	2.68			2.77		(0.13	)	–		(0.13	)		16.59
2012			12.77		0.08	1.20			1.28		(0.10	)	–		(0.10	)		13.95
2011			12.44		0.09	0.33			0.42		(0.09	)	–		(0.09	)		12.77
Class P shares
2015	(d)		16.84		0.01	1.02			1.03		–		–		–			17.87
SAM FLEXIBLE INCOME PORTFOLIO
Class A shares
2015			12.64		0.33	(0.31	)		0.02		(0.32	)	(0.13	)	(0.45	)		12.21
2014			12.37		0.32	0.46			0.78		(0.32	)	(0.19	)	(0.51	)		12.64
2013			11.99		0.33	0.50			0.83		(0.34	)	(0.11	)	(0.45	)		12.37
2012			11.32		0.36	0.68			1.04		(0.35	)	(0.02	)	(0.37	)		11.99
2011			11.31		0.40	0.01			0.41		(0.40	)	–		(0.40	)		11.32
Class C shares
2015			12.53		0.23	(0.30	)		(0.07	)	(0.23	)	(0.13	)	(0.36	)		12.10
2014			12.27		0.22	0.45			0.67		(0.22	)	(0.19	)	(0.41	)		12.53
2013			11.90		0.23	0.50			0.73		(0.25	)	(0.11	)	(0.36	)		12.27
2012			11.23		0.27	0.68			0.95		(0.26	)	(0.02	)	(0.28	)		11.90
2011			11.23		0.31	–			0.31		(0.31	)	–		(0.31	)		11.23
Class P shares
2015	(d)		11.97		0.06	0.21			0.27		(0.07	)	–		(0.07	)		12.17


						FINANCIAL HIGHLIGHTS
						PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31:


			Net Asset		Net	Net Realized				Dividends		Distributions		Total
			Value,		Investment	and Unrealized			Total From	from Net		from		Dividends			Net Asset
			Beginning		Income	Gain (Loss) on			Investment	Investment		Realized		and			Value, End
			of Period		(Loss)(a)	Investments			Operations	Income		Gains		Distributions			of Period
SAM STRATEGIC GROWTH PORTFOLIO
Class A shares
2015		$	21.79	$	0.37	($0.19	)	$	0.18	($0.37	)	($1.00	)	($1.37	)	$	20.60
2014			19.91		0.21	2.03			2.24	(0.22	)	(0.14	)	(0.36	)		21.79
2013			16.13		0.19	3.79			3.98	(0.20	)	–		(0.20	)		19.91
2012			14.61		0.12	1.52			1.64	(0.12	)	–		(0.12	)		16.13
2011			14.18		0.12	0.44			0.56	(0.13	)	–		(0.13	)		14.61
Class C shares
2015			20.32		0.21	(0.19	)		0.02	(0.23	)	(1.00	)	(1.23	)		19.11
2014			18.61		0.05	1.89			1.94	(0.09	)	(0.14	)	(0.23	)		20.32
2013			15.09		0.06	3.54			3.60	(0.08	)	–		(0.08	)		18.61
2012			13.67		0.01	1.42			1.43	(0.01	)	–		(0.01	)		15.09
2011			13.27		0.01	0.42			0.43	(0.03	)	–		(0.03	)		13.67
Class P shares
2015	(d)		18.81		0.01	1.43			1.44	–		–		–			20.25

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Principal LifeTime 2010 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2050 Fund, Principal LifeTime Strategic Income Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, and SAM Strategic Growth Portfolio, (11 of the portfolios constituting Principal Funds, Inc., collectively, the “Funds”), as of October 31, 2015, and the related statements of operations for the year then ended, statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and transfer agent of the affiliated funds. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds listed above constituting portfolios within Principal Funds, Inc., at October 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS,INC.
October 31, 2015 (unaudited)

As a shareholder of Principal Funds, Inc., you incur two types of costs: (1) transaction costs, including sales charges on purchase payments and contingent deferred sales charges; and (2) 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 Funds, Inc. and to compare these costs with the ongoing costs of investing in other mutual funds. As a shareholder of Principal LifeTime 2010 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2050 Fund, Principal LifeTime Strategic Income Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, or SAM Strategic Growth Portfolio, your fund will indirectly bear its pro rata share of the expenses incurred by the investment companies in which the fund invests. These expenses are not included in the fund’s annualized expense ratio used to calculate the expenses paid in this example. If they were, the expenses paid would be higher.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2015 to October 31, 2015), unless otherwise noted.


				Actual							Hypothetical
						Expenses Paid							Expenses Paid
				Ending		During Period					Ending		During Period
		Beginning		Account Value		May 1, 2015 to			Beginning		Account Value		May 1, 2015 to		Annualized
		Account Value		October 31,		October 31,			Account Value		October 31,		October 31,		Expense
		May 1, 2015		2015		2015	^(a)		May 1, 2015		2015		2015	^(a)	Ratio
Principal LifeTime 2010 Fund
Class A	$	1,000.00	$	974.82	$	2.04		$	1,000.00	$	1,023.14	$	2.09		0.41	%

Principal LifeTime 2020 Fund
Class A		1,000.00		972.68		2.04			1,000.00		1,023.14		2.09		0.41

Principal LifeTime 2030 Fund
Class A		1,000.00		971.08		2.04			1,000.00		1,023.14		2.09		0.41

Principal LifeTime 2040 Fund
Class A		1,000.00		972.17		2.04			1,000.00		1,023.14		2.09		0.41

Principal LifeTime 2050 Fund
Class A		1,000.00		971.22		2.04			1,000.00		1,023.14		2.09		0.41

Principal LifeTime Strategic Income Fund
Class A		1,000.00		978.95		2.05			1,000.00		1,023.14		2.09		0.41

SAM Balanced Portfolio
Class A		1,000.00		980.74		3.25			1,000.00		1,021.93		3.31		0.65
Class C		1,000.00		977.04		6.98			1,000.00		1,018.15		7.12		1.40
Class P		1,000.00		1,046.36		0.97	^(b)		1,000.00		1,022.63		2.60		0.51


				SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS, INC.
October 31, 2015 (unaudited)



				Actual							Hypothetical
						Expenses Paid							Expenses Paid
				Ending		During Period					Ending		During Period
		Beginning		Account Value		May 1, 2015 to			Beginning		Account Value		May 1, 2015 to		Annualized
		Account Value		October 31,		October 31,			Account Value		October 31,		October 31,		Expense
		May 1, 2015		2015		2015	^(a)		May 1, 2015		2015		2015	^(a)	Ratio
SAM Conservative Balanced Portfolio
Class A	$	1,000.00	$	982.70	$	3.15		$	1,000.00	$	1,022.03	$	3.21		0.63	%
Class C		1,000.00		979.67		6.89			1,000.00		1,018.25		7.02		1.38
Class P		1,000.00		1,030.90		0.96	^(b)		1,000.00		1,022.63		2.60		0.51

SAM Conservative Growth Portfolio
Class A		1,000.00		976.34		3.29			1,000.00		1,021.88		3.36		0.66
Class C		1,000.00		972.13		6.96			1,000.00		1,018.15		7.12		1.40
Class P		1,000.00		1,061.16		0.81	^(b)		1,000.00		1,023.09		2.14		0.42

SAM Flexible Income Portfolio
Class A		1,000.00		982.32		3.15			1,000.00		1,022.03		3.21		0.63
Class C		1,000.00		978.40		6.98			1,000.00		1,018.15		7.12		1.40
Class P		1,000.00		1,022.42		0.96	^(b)		1,000.00		1,022.63		2.60		0.51

SAM Strategic Growth Portfolio
Class A		1,000.00		975.84		3.34			1,000.00		1,021.83		3.41		0.67
Class C		1,000.00		972.02		7.11			1,000.00		1,018.00		7.27		1.43
Class P		1,000.00		1,077.09		0.99	^(b)		1,000.00		1,022.63		2.60		0.51

^(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).

The following directors are considered not to be “interested persons” as defined in the 1940 Act


		Number of	Other
Name,		Portfolios in Fund	Directorships
Position Held with the Fund,	Principal Occupation(s)	Complex Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	120	Durango Herald, Inc;
Director since 2004			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948

Leroy T. Barnes, Jr.	Retired.	120	McClatchy
Director since March 2012			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.; Frontier
1951			Communications, Inc.

Craig Damos	President, The Damos	120	Hardin Construction
Director since 2008	Company. Formerly, CEO, The		Company
Member, Audit Committee	Weitz Company
Member, 15(c) Committee
1954

Elizabeth A. Nickels	Formerly, Executive Director,	120	Charlotte Russ; Follet
Director since September 2015	Herman Miller Foundation;		Corporation; Herman
1962	Formerly President, Herman		Miller, Inc.; Petsmart;
	Miller Healthcare		Spartan Nash;
			Spectrum Health
			Systems
Mark A. Grimmett	Executive Vice President and	120	None
Director since 2004	CFO, Merle Norman Cosmetics,
Member, Nominating and Governance	Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960

Fritz S. Hirsch	CEO, MAM USA	120	Focus Products Group
Director since 2005	Formerly, President, Sassy, Inc.
Member, Operations Committee
Member, 15(c) Committee
1951

Tao Huang	Formerly, Chief Operating	120	Armstrong World
Director since March 2012	Officer, Morningstar, Inc.		Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962

William C. Kimball	Partner, Kimball – Porter	120	Casey’s General Stores,
Director since 1999	Investments L.L.C.		Inc.
Member, Nominating and Governance
Committee
1947

Karen (“Karrie”) McMillan	Managing Director, Patomak	120	None
Director since 2014	Global Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute

The following directors are considered to be “interested persons” as defined in the 1940 Act, as amended, because of an affiliation with the Manager and Principal Life.


		Number of
		Portfolios in Fund	Other
Name,		Complex	Directorships
Position Held with the Fund,	Principal Occupation(s)	Overseen by	Held by Director
Year of Birth	During past 5 years	Director	During Past 5 Years
Michael J. Beer	Executive Vice President, Principal	120	None
Director since 2012	Funds Distributor, Inc. (“PFD”)
President, Chief Executive Officer	Vice President/Mutual Funds and
Member, Executive Committee	Broker Dealer, Principal Life
1961	Insurance Company (“PLIC”)
	Director, Principal Management
	Corporation, (the “Manager”)
	President & Chief Executive Officer,
	the Manager since 2015
	Executive Vice President/ Chief
	Operating Officer, the Manager
	(2008-2015)
	Director, Princor
	President, Princor (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) since 2011
	President, PSS since 2011

Nora M. Everett	Director, Edge Asset Management,	120	None
Director since 2008	Inc. (“Edge”) (2008-2011)
Chairman	Director, Finisterre Capital LLP since
Member, Executive Committee	2011
1959	Director, Origin Asset Management
	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) since 2010
	Chairman, PFD since 2011
	Senior Vice President/Retirement and
	Investor Services, PLIC (2008-2015)
	President/Retirement and Investor
	Services, PLIC since 2015
	Chairman, the Manager since 2011
	President, the Manager (2008-2015)
	Chairman, Princor since 2011
	Chief Executive Officer, Princor
	(2009-2015)
	Chairman, PSS since 2011

Correspondence intended for each Director who is other than an Interested Director may be sent to 711 High Street, Des Moines, IA

Name, Position Held with the Fund, Address, and Year of Birth

Randy L. Bergstrom Assistant Tax Counsel

711 High Street, Des Moines, IA 50392 1955

Tracy Bollin Chief Financial Officer

711 High Street, Des Moines, IA 50392 1970

Principal Occupation(s) During past 5 years

Counsel, Principal Global Investors, LLC (“PGI”) Counsel, PLIC

Chief Financial Officer, PFA since 2010 Assistant Controller, PFD (2007-2010)

Chief Financial Officer, PFD since 2010 Chief Financial Officer, the Manager since 2010 Financial Controller, the Manager (2008-2010) Assistant Controller, Princor (2009-2010) Chief Financial Officer, Princor since 2010 Financial Controller, Princor (2008-2009) Assistant Controller, PSS (2007-2010) Chief Financial Officer, PSS since 2010

David J. Brown Chief Compliance Officer

711 High Street, Des Moines, IA 50392 1960

Senior Vice President, PFD Vice President/Compliance, PLIC

Senior Vice President, the Manager Senior Vice President, Princor Senior Vice President, PSS

Teresa M. Button Treasurer

711 High Street, Des Moines, IA 50392 1963

Vice President/Treasurer, Edge since 2011 Vice President/Treasurer, PFA since 2011

Vice President/Treasurer, PFD since 2011 Vice President/Treasurer, PGI since 2011 Vice President/Treasurer, PLIC since 2011 Vice President/Treasurer, the Manager since 2011 Vice President/Treasurer, Post since 2011 Vice President/Treasurer, Principal-REI since 2011 Vice President/Treasurer, Princor since 2011 Vice President/Treasurer, PSS since 2011 Treasurer, Spectrum since 2011

Carolyn F. Kolks Assistant Tax Counsel

711 High Street, Des Moines, IA 50392 1962

Jennifer A. Mills Assistant Counsel

711 High Street, Des Moines, IA 50392 1973

Counsel, PGI Counsel, PLIC

Counsel, PFD (2009-2013) Counsel, PLIC

Counsel, the Manager (2009-2013, 2014 - present) Counsel, Princor (2009-2013) Counsel, PSS (2009-2013)

Layne A. Rasmussen Vice President and Controller

711 High Street, Des Moines, IA 50392 1958

Greg Reymann, Assistant Counsel

711 High Street, Des Moines, IA 50392 1958

Vice President/Controller – Principal Funds, the Manager

Assistant General Counsel, PLIC since 2014 VP, Chief Compliance Officer and Chief Risk Officer, Transamerica Asset Management, Inc. (“TAM”) (2010-2012)

Assistant General Counsel, Transamerica Asset Management Group (2013-2014) Vice President/CFTC Principal, TAM (2013-2014)


Name, Position Held with the Fund,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Britney L. Schnathorst	Counsel, PLIC since 2013
Assistant Counsel	Prior thereto, Attorney in Private Practice
711 High Street, Des Moines, IA 50392
1981


Adam U. Shaikh	Counsel, PFD (2006-2013)
Assistant Counsel	Counsel, PLIC
711 High Street, Des Moines, IA 50392	Counsel, the Manager (2007-2013, 2014 - present)
1972	Counsel, Princor (2007-2013)
	Counsel, PSS (2007-2013)

Dan Westholm	Assistant Vice President/Treasury, PFA since 2013
Assistant Treasurer	Director – Treasury, PFA (2011-2013)
711 High Street, Des Moines, IA 50392	Assistant Vice President/Treasury, PFD since 2013
1966	Director – Treasury, PFD (2011-2013)
	Assistant Vice President/Treasury, PLIC
	Assistant Vice President/Treasury, the Manager
	Assistant Vice President/Treasury, Princor since 2013
	Director – Treasury, Princor (2008-2009, 2011-2013)
	Assistant Vice President/Treasury, PSS

Beth Wilson	Vice President, the Manager (2007-2013)
Vice President and Secretary	Vice President, Princor (2007-2009)
711 High Street, Des Moines, IA 50392
1956

Clint Woods	Associate General Counsel, AEGON USA Investment Management, LLC (2003-
Counsel	2012)
711 High Street, Des Moines, IA 50392	Assistant General Counsel, Assistant Corporate Secretary, Governance Officer,
1961	PLIC since 2013