finalretailbook.htm - Generated by SEC Publisher for SEC Filing

Due to size constraints, this filing is being made in two related submissions. This submission is the second of the two related submissions.

The accession number of the previous related submission is as follows: 0000898745-16-001567

GLOBAL INVESTMENT MANAGEMENT • ASSET ALLOCATION EXPERTISE • RETIREMENT LEADERSHIP

For the first time since 2007—a nine-year period where at least one part of the world was in a recession or a steep downturn—we have reached a point where economic growth has synchronized, with most global economies becoming stable or improving.

The real U.S. expansion may be ready to begin, as the economy has essentially been in recovery the entire seven years since the recession.¹In August, The Conference Board consumer confidence index rebounded to its highest level in a year, nearly the best since the recession. Average hourly earnings have gained 2.6 percent and are rising over last year, with household spending following the trend of higher income. Ultra-low mortgage rates are lighting a fire under house prices and activity, boosting household confidence at the same time.

The ritual of “will they or won’t they” regarding the Federal Reserve’s decision to raise interest rates is tiring some investors. However, volatility has been low in U.S. Treasury bonds as well as in stocks, maybe from months of commentary suggesting that higher rates are just ahead, but somehow never materializing.

The U.S. alone is not driving the global upturn, as recent Eurozone and U.K. economic data has also been quite resilient. Business and consumer confidence softened and lending weakened, but not to the extent feared. Eurozone data similarly has little evidence of contagion, even with negotiation uncertainties about Brexit. Loan demand is picking up as lending standards ease, and capital spending is rising. Joblessness is flat, but at a high of 10.1 percent. So far, the ubiquitous forecasts of recession or slump in Europe are proving way off base. Data from China still shows a mild rebound after several years of deteriorating growth. Sentiment is better; business surveys edged higher in August with the official gauge the best in almost two years. The synchronized upturn’s rising tide is lifting developing countries too. As oil prices firm and political crises ease, Brazil and Russia can exit their recessions.

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. We 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.²

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.

*All data cited from August 2016 Principal Economic Insights by Robert Baur, Ph.D. Chief Global Economist, available at principalfunds.com/commentary.

¹A recession is the end of a business cycle and the beginning of the next cycle is a recovery, which in a typical cycle eventually turn into a sustainable expansion.

²Asset allocation and diversification do not ensure a profit or protect against a loss. Past performance does not guarantee future results.

Central Bank policies have remained a key focus in the markets, as investors continued to anticipate the Federal Reserve’s (the Fed’s) rate normalization timeline. The possibility of an interest rate hike grew throughout August as U.S. data points indicated a solid outlook. The Bank of England implemented easing policies over the summer, stressing that further cuts are likely and that rates will remain low indefinitely.

If the circle of improved wages, confidence, demand, profits, capital spending, and expansion continues as it appears it might in the U.S., the economic upcycle will last a while longer, extended by the drop in interest rates after the U.K. vote in June. We look for a U.S. growth rebound, boosted by strong consumer spending, rising investment, and higher inventories. For 2016, real GDP gains likely will be weak, given the sluggish first half. We believe growth in 2017 should be well over 2% even with a Fed rate hike or two.

The United Kingdom and the Eurozone are proving more resilient to the Brexit (British exit of the European Union) aftermath than forecasters believed. China’s modest bounce continues. That plus improving U.S. demand benefits the developing world.

Late summer brought flat prices for broad equity indices. Defensive sectors, such as health care and utilities, had been winners for years because the marginal buyer of stocks (those whose willingness to pay is equal to the market price), has been yield-hungry fixed income investors looking for better returns than in U.S. treasury bonds. They were buying growth companies with solid earnings, low volatility, and good dividends. In August, those U.S. defensive sectors took a tumble: health care, off 3.5%; utilities, down 6.1%; and telecom services lost 5.7%, as measured by their respective indexes. The small rise in yields of sovereign bonds hurt safe haven-centered portfolios. Long-dated U.S. treasury bonds fell and U.S. global bonds also lost ground. But, the optimism expressed above about global growth was positive for both developed and developing-country corporate bonds. Credit spreads narrowed and returns for August were at least a small positive.

*All data cited from August 2016 Principal Economic Insights by Robert Baur, Ph.D. Chief Global Economist, available at principalfunds.com/commentary.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks long-term growth of capital. The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with large market capitalizations at the time of each purchase. It invests in foreign securities. The fund invests in growth equity securities; growth orientation emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average.

Amazon, an e-commerce company, contributed. Alphabet (previously Google), Microsoft and Facebook were contributors. American Tower, which owns over 100,000 cell phone towers globally and leases antenna space on these towers to wireless service providers, contributed. Valeant Pharmaceuticals, a unique pharmaceutical company with significant franchises in eye care, dermatology, and branded generics, detracted. Liberty Global, a large cable company with operations primarily in Europe, detracted. QUALCOMM, a leader in communications chip technology, detracted. American Express, a services company that provides charge and credit payment cards, as well as travel-related services, to consumers and businesses around the world, detracted. Liberty TripAdvisor Holdings detracted.

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 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 12/30/16 for Class A, C, and 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 Institutional Class shares, adjusted for the fees and expenses of the share class shown. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

*** Performance shown for the benchmark is calculated from 5/31/12 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks to achieve long-term returns, comprised of income and capital appreciation, with an emphasis on managing volatility. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in a diversified portfolio of credit-related instruments, represented by bonds and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

Security selection within investment-grade corporate bonds contributed. Security selection within U.S. Treasury securities contributed to performance. Security selection within emerging market debt contributed. The portfolio underperformed the Barclays Global Aggregate Corporate index over the year driven mainly by a short duration position as rates fell. An out-of-index allocation to below investment-grade corporate bonds detracted. An out-of-index allocation to U.S. Treasury securities 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 12/30/16 for Class A. Returns displayed 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.

*** Performance shown for the benchmark is calculated from 8/31/14 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

BlackRock Financial Management, Inc.; Brookfield Investment Management, Inc.; Credit Suisse Asset Management, LLC; Fischer Francis Trees & Watts, Inc.;

Macquarie Capital Investment Management, LLC; Pictet Asset Management SA; Principal Real Estate Investors, LLC; Symphony Asset Management, LLC; Tortoise Capital Advisors, LLC.

The investment seeks a long-term total return in excess of inflation. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in investments related to real assets and real asset companies. The fund seeks to achieve its investment objective by allocating its assets among general investment categories related to real assets and real asset companies (which include tangible assets and investments that are expected to perform well in periods of high inflation).

Allocation to real estate investment trusts (REITs) (sub-advised by Principal Real Estate Investors, LLC) contributed as their allocation to retail, office, and industrial stocks contributed the most to absolute returns, while manager security selection contributed the most in diversified and self-storage stocks. Allocation to treasury inflation protected securities (TIPs) (sub-advised by BlackRock Financial Management, Inc.) contributed to absolute returns. The sub-advisor underperformed on a relative basis as long U.S. breakeven positioning was the main detractor due to narrowing inflation expectations, as nominal rates were better bid due to the risk off market sentiment that unfolded surrounding geo-political uncertainties. Allocation to floating rate debt (sub-advised by Symphony Asset Management, LLC) contributed to absolute returns. The sub-advisor underperformed on a relative basis as security selection in consumer discretionary and information technology detracted. Allocation to master limited partnerships (MLPs) (sub-advised by Tortoise Capital Advisors, LLC) detracted as relative underperformance was driven by an overweight position in the underperforming crude oil pipelines and refined product pipelines subsector. Negative security selection within the gathering and processing and natural gas pipelines subsectors also detracted. Allocation to timber stocks in global timber (sub-advised by Pictet Asset Management SA) detracted driven by an overweight position to pulp, and out-of-benchmark allocation to homebuilders and negative performance in containerboard. Manager selection in containerboard and homebuilders also weighed on performance. Underweight to metals & mining stocks within the natural resource allocations detracted as those stocks saw a significant rally. Allocation to commodities (sub-advised by Credit Suisse Asset Management LLC), which was implemented through derivatives including commodities future contracts, 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. 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 12/30/16 for Class A, C, and P. Returns displayed are based on net total investment expense.

*** Performance shown for the benchmark is calculated from 3/31/10 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index. Diversified Real Asset Blended Index is composed of 35% Barclays U.S. Treasury TIPS Index, 20% S&P Global Infrastructure Index, 20% S&P Global Natural Resources Index, 15% Bloomberg Commodity Index, and 10% FTSE EPRA/NAREIT Developed Markets Index

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks to provide a high level of current income with an emphasis on managing volatility. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in U.S. and non-U.S. below investment grade securities (sometimes called "high yield" or "junk") which are rated at the time of purchase Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by Standard & Poor's Rating Service ("S&P").

Issue specific impacts from Caraustar Industries, AZ Chem, and EP Energy LLC contributed. Issue impacts from Halcon Resources, Whiting Petroleum, and Continental Resources contributed. Security selection within bank loans and bonds detracted. Within bank loans, Newpage Corporation, Seadrill Partners LLC, and Drillships Financing Holding detracted the most. Bonds that detracted the most were EP Energy LLC, Eletson Holdings, and Bi-Lo LLC.

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 12/30/16 for Class A. Returns displayed 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.

AQR Capital Management, LLC; Cliffwater, LLC; CNH Partners, LLC; Finisterre Capital, LLP; Graham Capital Management, LP; KLS Diversified Asset Management, LLP; Loomis, Sayles & Company, LP; Los Angeles Capital Management and Equity Research, Inc.; Sound Point Capital Management, LP; Wellington Management Company, LLP; York Registered Holdings, LP.

The investment seeks to achieve long-term capital appreciation with an emphasis on positive total returns and managing volatility. The fund's investment adviser allocates the fund's assets among one or more of the investment strategies, which are executed by one or more of the fund's sub-advisors. It invests in a broad range of instruments including, but not limited to, equities, bonds, currencies, convertible securities and derivatives such as futures, options, swaps and forwards. The fund can invest a higher percentage of assets in securities of individual issuers than a diversified fund. It is non-diversified.

The emerging markets credit sleeve (sub-advised by Finisterre Capital, LLP) contributed as gains were driven by energy-related credits, partially offset by losses on crude oil and interest rate hedges. The equity long/short sleeve (sub-advised by LA Capital Management and Equity Research, Inc.) contributed as the main contributors were overweight to quality and dividend-yield factors, and underweight to risky factors (volatility and financial risk) and momentum. The fixed-income market neutral sleeve (sub-advised by KLS Diversified Asset Management, LLP) contributed as gains were led by the credit portfolio which benefitted from high yield spread tightening, and curve trades within the rates portfolio. The equity long/short sleeve (sub-advised by Wellington Management Company, LLP) was a drag on performance as the U.S. futures and options hedge strategy was the main detractor, but the portfolio was also hurt by higher-than-average market exposure during the early part of 2016. All of the aforementioned positions are achieved through the use of derivatives, including currency forward and interest rate and equity market futures. The event driven sleeve (sub-advised by York Registered Holdings LP) detracted as losses were led by special situation equities, largely attributable to the sell-off in value stocks in the third quarter of 2015 and hedge fund deleveraging during first quarter of 2016. The global macro sleeve (sub-advised by Graham Capital Management LP) detracted due to losses in equity index trading, as many equity markets suffered from several sharp reversals.

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

Expense limits apply through 12/30/16 for Class A, C, and P. Returns displayed are based on net total investment expense.

*** Performance shown for the benchmark is calculated from 10/31/11 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks long-term growth of capital with lower volatility than the global equity markets. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities and derivatives on equity securities, at the time of each purchase. It will invest in foreign, including emerging market, securities, of at least three countries and at least 30% of its net assets in foreign securities. The fund will also invest in U.S. securities.

Adidas, the second largest sporting goods company globally, contributed. Qualicorp, a Brazil-based company primarily active in the health care insurance sector, contributed. NetEase, a Chinese gaming and internet media platform, contributed. ConocoPhillips, an independent exploration and production company, detracted. Leidos, which provides scientific, engineering, systems integration and technical services to the U.S. government and certain private sector end markets, detracted. Boeing, the world's largest aerospace and defense company by sales, detracted.

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 12/30/16 for Class A and P. Returns displayed 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.

*** Performance shown for the benchmark is calculated from 9/30/15 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index. Global Opportunities Equity Hedged Blended Index is composed of 70% BofA Merrill Lynch USD LIBOR 1 month and 30% MSCI All Country World Index

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks long-term growth of capital. Under normal market circumstances, the fund invests in equity securities, and the fund invests in foreign, including emerging market, securities of at least three countries and at least 30% of its net assets in foreign securities. It also invests in U.S. securities.

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

Expense limits apply through 12/30/16 for Class A, C, and P. Returns displayed are based on net total investment expense.

*** Performance shown for the benchmark is calculated from 12/31/12 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with small market capitalizations at the time of each purchase. It invests primarily in foreign equity securities. The fund has no limitation on the percentage of assets that is invested in any one country or denominated in any one currency, but it typically invests in foreign securities of more than 10 countries.

European markets outside of the UK and Asia, excluding Japan, produced the best results. Within the Asia Pacific region, Australia and Hong Kong produced the strongest results. Within Europe, Italy, Spain, and France were the biggest contributors. The energy and industrials sectors contributed the most. Treasury Wine Estates (Australia), Bluescope Steel Limited (Australian steel producer), and Lion Corporation (Japanese household products manufacturer) were the biggest individual contributors to relative performance. Negative stock selection in Japan and in the UK, the two largest countries in the international small cap universe, detracted. The consumer discretionary and information technology sectors were the biggest detractors. Swiss financial services company Leonteq, Aldermore (UK property lender), and Concordia International (Canadian pharmaceutical company) were the biggest individual detractors from relative performance.

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

Expense limits apply through 12/30/16 for Class A and P. Returns displayed 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.

*** Performance shown for the benchmark is calculated from 5/31/14 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Global Investors, LLC

The investment seeks to provide a high level of income that is exempt from federal income tax while protecting investors' capital. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal obligations. It invests in other debt obligations, including (but not limited to) taxable municipal obligations, U.S. Treasury securities, obligations of the U.S. government, its agencies and instrumentalities ("Agency Securities") and exchange-traded funds (ETFs) to gain exposure to the municipal market.

Allocation to Golden State Tobacco, Mohegan Tribal Finance Authority, and Tender Option Bond Trust contributed. Allocation to Ohio Air Quality Development Authority, Louisiana Public Facilities Authority, and Iowa Finance Authority detracted.

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

Expense limits apply through 12/30/16 for Class A, C, and 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 Class A shares, 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:
Origin Asset Management, LLP

The investment seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of emerging market companies at the time of each purchase. Emerging market companies are companies with their principal place of business or principal office in emerging market countries or companies whose principal securities trading market is an emerging market country.

The information technology sector was the strongest contributor to relative performance, with Asian internet and mobile device hardware companies especially strong. The telecommunications and consumer staples sectors also contributed. From a geographical perspective, stock selection within China/Hong Kong was especially strong. The violent technical reversal, with previously weak stocks outperforming at the expense of prior winners, was a detractor from performance due to the Fund's emphasis on trend following, so long as those trends are justified by company fundamentals. For the most part, the change in leadership does not appear to be supported by any major change in underlying company fundamental performance. From a geographical perspective, Taiwan and South Korea were the biggest detractors as previously strongly performing financial companies markedly underperformed. Stock selection within Brazil, Turkey, India, and South Africa detracted.

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.

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

Expense limits apply through 12/30/16 for Class A. Returns displayed are based on net total investment expense.

*** Performance shown for the benchmark is calculated from 1/31/15 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Spectrum Asset Management, Inc.

The investment seeks to provide current income. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in preferred securities at the time of purchase. It concentrates its investments (invests more than 25% of its net assets) in securities in the U.S. and non-U.S. financial services (i.e., banking, insurance and commercial finance,) industry. The fund also regularly invests in the real estate investment trust (i.e. REIT) and utility industries.

The hybrid market performed well during the year against the backdrop of declining interest rates and central bank policy support. The negotiated exchange by GE for its preferred stock of GECC benefited performance. Security selection in domestic securities contributed, particularly in industrials. Contingent capital (CoCo) securities, especially European bank AT1's, performed poorly in February due to the fear of coupon skips by European banks. Certain insurance names declined due to continued structural concerns of term extension rather than being called at par. Being underweight to DRD (dividend received deduction)-eligible preferred securities, which outperformed the overall index, detracted.

*** Performance shown for the benchmark assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index. Preferreds Blended Index is composed of 50% BofA Merrill Lynch Fixed Rate Preferred Securities Index and 50% BofA Merrill Lynch U.S. Capital Securities Index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Real Estate Investors, LLC

The investment seeks total return with income. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in mutual funds that invest in the real estate industry at the time of purchase. The underlying funds invest in equity and debt real estate securities of U.S. and non-U.S. issuers and are both concentrated in the real estate industry; therefore, the Real Estate Allocation Fund is considered concentrated in the real estate industry as well. The fund allocates its investments between the underlying funds, 25% to 75% in each underlying fund, based on qualitative and quantitative analysis.

An average overweight to global real estate securities vs. real estate debt contributed to overall relative performance. Within the Real Estate Debt Income Fund (sub-advised by Principal Real Estate Investors, LLC), overweight to out-of-index legacy bonds as well as being overweight duration at the 10-year portion of the interest rate curve during a period when the yield curve flattened contributed. Within the Global Real Estate Securities Fund (sub-advised by Principal Real Estate Investors, LLC), positive attribution came from an overweight to U.S. industrial and self-storage, as well as German residential companies.

Both of the underlying funds posted negative excess returns vs. their respective benchmarks. Overweight to London office in the global real estate securities sleeve detracted. Within the commercial mortgage-backed securities (CMBS) sleeve, overweight to BBB-rated bonds relative to the benchmark during a period where the credit curve steepened materially between those bonds and AAA-rated bonds detracted.

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.

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

Expense limits apply through 12/30/16 for Class A. Returns displayed 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.

*** Performance shown for the benchmark assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index. Real Estate Allocation Blended Index is composed of 50% FTSE EPRA/NAREIT Developed Index NR and 50% Barclays CMBS ERISA ELIGIBLE Index.

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Principal Real Estate Investors, LLC

The investment seeks current income. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in debt securities of U.S. companies principally engaged in the real estate industry at the time of purchase. A real estate company has at least 50% of its assets, income or profits derived from products or services related to the real estate industry. The fund is non-diversified.

Being overweight to out-of-index legacy bonds that benefitted from a higher percentage of maturing loans paying off than was expected at the beginning of the period contributed. Being overweight the index exposure to 2014-2016 vintage AA and A-rated bonds during a period where the credit curve flattened between those bonds and AAA-rated bonds contributed. Being overweight to the 10-year part of the Treasury curve and underweight the 5-year part of the curve during a period where the yield curve flattened contributed. Being overweight BBB-rated bonds relative to the benchmark during a period where the credit curve steepened materially between those bonds and AAA-rated bonds detracted. One detractor was exposure to out-of-index interest only (IO) securities during a period when IO spreads widened relative to index spreads.

A sales charge may apply as follows: Class A shares: maximum up-front sales charge of 3.75%; 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 12/30/16 for Class A; 12/30/2016 for Class P. Returns displayed are based on net total investment expense.

*** Performance shown for the benchmark assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index

Investment Advisor:
Principal Management Corporation

Sub-Advisor:
Edge Asset Management, Inc.

The investment seeks to provide current income and long-term growth of income and capital. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying equity securities of companies with small to medium market capitalizations at the time of each purchase. It invests in the securities of foreign issuers, real estate investment trusts, preferred securities, convertible securities, master limited partnerships, and royalty trusts.

New Flyer Industries (NFI) contributed due to outperformance on strong top and bottom line growth. Its acquisition of Motor Coach Industries was a positive development as the combined company dominates the metropolitan bus and motor coach markets in North America. Digital Realty Trust (DLR) contributed as it outperformed on top and bottom-line growth. DLR made an accretive acquisition of TelX, which diversified its portfolio by expanding into the colocation and interconnection businesses. Additionally, DLR grew its footprint overseas by acquiring eight facilities in Europe. EPR Properties (EPR) contributed as the specialty real estate investment trust (REIT) had strong financial results, continued to invest for future growth, and also likely benefitted from the low interest rate environment and corresponding investor interest in the higher-yielding sector. HollyFrontier (HFC) detracted from as tighter refining margins weighed on profitability. Colony Capital (CLNY) traded down following the announcement of its planned tri-merger with NorthStar Asset Management and NorthStar Realty Finance. Alliance Resource Partners underperformed as the price of coal grew pressured and the price differential between its contract rates and the current market rate weighed on the stock.

*** Performance shown for the benchmark is calculated from 5/31/11 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
August 31, 2016

						Credit
						Opportunities			Diversified Real
Amounts in thousands, except per share amounts		Blue Chip Fund				Explorer Fund			Asset Fund^(a)
Investment in securities--at cost		$	1,157,009		$	19,544		$	3,665,518
Foreign currency--at cost		$	–		$	–		$	29,195
Assets
Investment in securities--at value		$	1,332,876		$	19,710		$	3,757,312
Foreign currency--at value			–			–			29,173
Cash			–			–			23,793
Deposits with counterparty			–			264			2,387
Receivables:
Dividends and interest			1,516			100			6,495
Expense reimbursement from Manager			–			3			66
Foreign currency contracts			–			–			4,940
Fund shares sold			578			–			2,413
Investment securities sold			1,318			5,875			7,531
OTC swap agreements--at value (premiums paid $0, $0 and $0)			–			4			259
Variation margin on financial derivative instruments			–			4			4,622
Prepaid expenses			–			3			–
Total Assets			1,336,288			25,963			3,838,991
Liabilities
Accrued management and investment advisory fees			770			10			2,492
Accrued distribution fees			26			2			55
Accrued transfer agent fees			20			1			479
Accrued directors' expenses			4			2			6
Accrued professional fees			22			26			88
Accrued other expenses			20			–			86
Cash overdraft			–			95			–
Payables:
Dividends payable			–			15			–
Foreign currency contracts			–			–			6,321
Fund shares redeemed			840			–			1,789
Investment securities purchased			1,514			6,432			105,513
Options and swaptions contracts written (premiums received $0, $0 and $1,672)			–			–			1,109
Variation margin on financial derivative instruments			–			4			4,865
Total Liabilities			3,216			6,587			122,803
Net Assets Applicable to Outstanding Shares		$	1,333,072		$	19,376		$	3,716,188
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	1,155,183		$	20,337		$	4,018,935
Accumulated undistributed (overdistributed) net investment income (loss)			2,173			64			93,211
Accumulated undistributed (overdistributed) net realized gain (loss)			(151	)		(1,151	)		(486,867	)
Net unrealized appreciation (depreciation) of investments			175,867			126			92,323
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency			–			–			(1,414	)
Total Net Assets		$	1,333,072		$	19,376		$	3,716,188
Capital Stock (par value: $.01 per share):
Shares authorized			950,000			200,000			1,725,000
Net Asset Value Per Share:
Class A: Net Assets	$		36,575		$	9,669		$	210,864
Shares Issued and Outstanding			2,171			1,018			19,056
Net Asset Value per share	$		16.85		$	9.50		$	11.07
Maximum Offering Price	$		17.83		$	9.87		$	11.50
Class C: Net Assets	$		21,705			N/A		$	31,350
Shares Issued and Outstanding			1,314						2,902
Net Asset Value per share	$		16.52	^(b)				$	10.80	^(b)
Class P: Net Assets	$		17,494			N/A		$	149,921
Shares Issued and Outstanding			1,031						13,566
Net Asset Value per share	$		16.97					$	11.05
Institutional: Net Assets	$		1,257,265		$	9,707		$	3,294,419
Shares Issued and Outstanding			73,939			1,019			297,253
Net Asset Value per share	$		17.00		$	9.52		$	11.08
R-3: Net Assets	$		11			N/A		$	11
Shares Issued and Outstanding			1						1
Net Asset Value per share	$		16.96					$	11.06
R-4: Net Assets	$		11			N/A		$	11
Shares Issued and Outstanding			1						1
Net Asset Value per share	$		16.98					$	11.07
R-5: Net Assets	$		11			N/A		$	11
Shares Issued and Outstanding			1						1
Net Asset Value per share	$		16.99					$	11.08
R-6: Net Assets			N/A			N/A		$	29,601
Shares Issued and Outstanding									2,671
Net Asset Value per share								$	11.08


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
August 31, 2016
									Global
									Opportunities
	Dynamic High Yield				Global Multi-				Equity Hedged
Amounts in thousands, except per share amounts	Explorer Fund				Strategy Fund				Fund
Investment in securities--at cost	$	15,662		$	3,159,743			$	6,564
Foreign currency--at cost	$	–		$	17,747			$	5
Assets
Investment in securities--at value	$	15,632		$	3,241,562			$	6,858
Foreign currency--at value		–			17,702				5
Cash		3			22,943				–
Deposits with counterparty		–			466,787				18
Receivables:
Dividends and interest		106			11,759				14
Expense reimbursement from Manager		4			4				13
Foreign currency contracts		–			24,086				–
Fund shares sold		2			3,999				–
Investment securities sold		44			73,589				322
OTC swap agreements--at value (premiums paid $0, $3,776 and $0)		–			12,167				–
Variation margin on financial derivative instruments		–			1,315				18
Prepaid expenses		4			–				7
Total Assets		15,795			3,875,913				7,255
Liabilities
Accrued management and investment advisory fees		8			3,588				6
Accrued distribution fees		1			79				1
Accrued transfer agent fees		1			162				1
Accrued directors' expenses		2			5				2
Accrued professional fees		35			143				24
Accrued other expenses		–			3,125				–
Cash overdraft		–			–				19
Payables:
Dividends payable		57			–				–
Foreign currency contracts		–			21,217				–
Fund shares redeemed		–			2,943				–
Investment securities purchased		1,525			103,015				286
Options and swaptions contracts written (premiums received $0, $5,941 and $0)		–			3,327				–
Reverse repurchase agreements		–			257,667				–
Short sales (proceeds received $0, $689,197 and $0)		–			720,668				–
OTC swap agreements--at value (premiums received $0, $2,619 and $0)		–			3,816				–
Variation margin on financial derivative instruments		–			2,130				–
Total Liabilities		1,629			1,121,885				339
Net Assets Applicable to Outstanding Shares	$	14,166		$	2,754,028			$	6,916
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	15,467		$	2,750,641			$	7,571
Accumulated undistributed (overdistributed) net investment income (loss)		(10	)		(2,623	)			49
Accumulated undistributed (overdistributed) net realized gain (loss)		(1,261	)		(45,912	)			(677	)
Net unrealized appreciation (depreciation) of investments		(30	)		49,069				(27	)
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			2,853				–
Total Net Assets	$	14,166		$	2,754,028			$	6,916
Capital Stock (par value: $.01 per share):
Shares authorized		200,000			1,450,000				300,000
Net Asset Value Per Share:
Class A: Net Assets	$	7,267		$	145,370		$		2,345
Shares Issued and Outstanding		795			13,495				257
Net Asset Value per share	$	9.14		$	10.77		$		9.12
Maximum Offering Price	$	9.50		$	11.19		$		9.65
Class C: Net Assets		N/A		$	56,557				N/A
Shares Issued and Outstanding					5,354
Net Asset Value per share				$	10.56	^(a)
Class P: Net Assets		N/A		$	286,895		$		2,285
Shares Issued and Outstanding					26,527				250
Net Asset Value per share				$	10.82		$		9.14
Institutional: Net Assets	$	6,899		$	2,265,206		$		2,286
Shares Issued and Outstanding		752			208,536				250
Net Asset Value per share	$	9.17		$	10.86		$		9.14


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
August 31, 2016
								Multi-Manager
		Global			International Small			Equity Long/Short
Amounts in thousands, except per share amounts	Opportunities Fund				Company Fund			Fund
Investment in securities--at cost	$	1,250,184		$	167,753		$	331,044
Foreign currency--at cost	$	–		$	2		$	427
Assets
Investment in securities--at value	$	1,313,565		$	170,706		$	337,068
Foreign currency--at value		–			3			429
Deposits with counterparty		–			–			121,285
Receivables:
Dividends and interest		3,929			296			527
Expense reimbursement from Manager		6			–			14
Foreign currency contracts		–			–			261
Fund shares sold		170			2			–
Investment securities sold		38,892			816			5,942
OTC swap agreements--at value (premiums paid $0, $0 and $0)		–			–			499
Variation margin on financial derivative instruments		–			–			153
Total Assets		1,356,562			171,823			466,178
Liabilities
Accrued management and investment advisory fees		945			153			435
Accrued distribution fees		2			1			–
Accrued transfer agent fees		5			3			2
Accrued custodian fees		–			24			–
Accrued directors' expenses		3			2			1
Accrued professional fees		34			24			26
Accrued other expenses		40			17			221
Cash overdraft		–			–			10,333
Payables:
Foreign currency contracts		–			–			175
Fund shares redeemed		479			–			–
Investment securities purchased		27,455			630			7,967
Short sales (proceeds received $0, $0 and $120,213)		–			–			120,823
OTC swap agreements--at value (premiums received $0, $0 and $0)		–			–			84
Variation margin on financial derivative instruments		–			–			49
Total Liabilities		28,963			854			140,116
Net Assets Applicable to Outstanding Shares	$	1,327,599		$	170,969		$	326,062
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,262,823		$	170,995		$	324,242
Accumulated undistributed (overdistributed) net investment income (loss)		18,782			406			881
Accumulated undistributed (overdistributed) net realized gain (loss)		(17,297	)		(3,385	)		(3,960	)
Net unrealized appreciation (depreciation) of investments		63,381			2,953			4,879
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		(90	)		–			20
Total Net Assets	$	1,327,599		$	170,969		$	326,062
Capital Stock (par value: $.01 per share):
Shares authorized		650,000			300,000			400,000
Net Asset Value Per Share:
Class A: Net Assets	$	4,940		$	2,026		$	55
Shares Issued and Outstanding		431			207			6
Net Asset Value per share	$	11.45		$	9.80		$	9.97
Maximum Offering Price	$	12.12		$	10.37		$	10.55
Class C: Net Assets	$	1,595			N/A			N/A
Shares Issued and Outstanding		141
Net Asset Value per share	$	11.34	^(a)
Class P: Net Assets	$	164		$	157		$	10
Shares Issued and Outstanding		14			16			1
Net Asset Value per share	$	11.53		$	9.80		$	9.98
Institutional: Net Assets	$	1,320,900		$	168,786		$	10
Shares Issued and Outstanding		114,207			17,108			1
Net Asset Value per share	$	11.57		$	9.87		$	9.99
R-6: Net Assets		N/A			N/A		$	325,987
Shares Issued and Outstanding								32,619
Net Asset Value per share							$	9.99


STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
August 31, 2016
	Opportunistic				Origin Emerging				Preferred
Amounts in thousands, except per share amounts	Municipal Fund				Markets Fund				Securities Fund
Investment in securities--at cost	$	136,413		$	709,072			$	5,318,657
Investments in affiliated securities--at cost	$	–		$	–			$	121,899
Assets
Investment in securities--at value	$	144,558		$	777,161			$	5,638,640
Investment in affiliated securities--at value		–			–				121,028
Cash		5,002			119				–
Deposits with counterparty		–			1,600				–
Receivables:
Dividends and interest		1,574			1,334				69,917
Expense reimbursement from Manager		7			7				–
Expense reimbursement from Distributor		–			–				1
Fund shares sold		675			218				33,348
Investment securities sold		3,791			–				3,493
Total Assets		155,607			780,439				5,866,427
Liabilities
Accrued management and investment advisory fees		59			789				3,440
Accrued administrative service fees		–			–				1
Accrued distribution fees		24			–				919
Accrued service fees		–			–				3
Accrued transfer agent fees		9			4				794
Accrued directors' expenses		3			4				11
Accrued professional fees		26			26				35
Accrued other expenses		15			87				201
Payables:
Dividends payable		356			–				20,510
Fund shares redeemed		169			518				10,614
Interest expense and fees payable		13			–				–
Investment securities purchased		9,064			–				195
Options and swaptions contracts written (premiums received $0, $0 and $4,386)		–			–				2,034
Variation margin on financial derivative instruments		–			366				–
Floating rate notes issued		5,565			–				–
Total Liabilities		15,303			1,794				38,757
Net Assets Applicable to Outstanding Shares	$	140,304		$	778,645			$	5,827,670
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	133,393		$	905,456			$	5,445,948
Accumulated undistributed (overdistributed) net investment income (loss)		206			5,349				23,900
Accumulated undistributed (overdistributed) net realized gain (loss)		(1,440	)		(200,116	)			36,358
Net unrealized appreciation (depreciation) of investments		8,145			67,950				321,464
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			6				–
Total Net Assets	$	140,304		$	778,645			$	5,827,670
Capital Stock (par value: $.01 per share):
Shares authorized		450,000			425,000				2,200,000
Net Asset Value Per Share:
Class A: Net Assets	$	49,208		$	401		$		883,381
Shares Issued and Outstanding		4,461			44				85,235
Net Asset Value per share	$	11.03		$	9.07		$		10.36
Maximum Offering Price	$	11.46		$	9.60		$		10.76
Class C: Net Assets	$	16,455			N/A		$		859,055
Shares Issued and Outstanding		1,492							82,987
Net Asset Value per share	$	11.03	^(a)				$		10.35	^(a)
Class J: Net Assets		N/A			N/A		$		50,135
Shares Issued and Outstanding									4,957
Net Asset Value per share							$		10.11	^(a)
Class P: Net Assets	$	71,035		$	11		$		1,578,548
Shares Issued and Outstanding		6,431			1				153,408
Net Asset Value per share	$	11.05		$	8.97		$		10.29
Institutional: Net Assets	$	3,606		$	778,143		$		2,444,823
Shares Issued and Outstanding		327			86,740				237,368
Net Asset Value per share	$	11.03		$	8.97		$		10.30
R-1: Net Assets		N/A			N/A		$		1,572
Shares Issued and Outstanding									153
Net Asset Value per share							$		10.25
R-2: Net Assets		N/A			N/A		$		1,234
Shares Issued and Outstanding									121
Net Asset Value per share							$		10.20
R-3: Net Assets		N/A			N/A		$		3,311
Shares Issued and Outstanding									324
Net Asset Value per share							$		10.23
R-4: Net Assets		N/A			N/A		$		1,395
Shares Issued and Outstanding									137
Net Asset Value per share							$		10.21
R-5: Net Assets		N/A			N/A		$		4,216
Shares Issued and Outstanding									411
Net Asset Value per share							$		10.26
R-6: Net Assets		N/A		$	90				N/A
Shares Issued and Outstanding					10
Net Asset Value per share				$	8.97


STATEMENT OF ASSETS AND LIABILITIES
PRINCIPAL FUNDS, INC.
August 31, 2016
							Small-MidCap
		Real Estate		Real Estate Debt			Dividend
Amounts in thousands, except per share amounts and Real Estate Allocation Fund	Allocation Fund			Income Fund			Income Fund
Investment in securities--at cost	$	–	$	151,973		$	1,978,440
Investment in affiliated Funds--at cost	$	902,354	$	–		$	–
Foreign currency--at cost	$	–	$	–		$	327
Assets
Investment in securities--at value	$	–	$	154,020		$	2,283,882
Investment in affiliated Funds--at value		930,678		–			–
Foreign currency--at value		–		–			327
Receivables:
Dividends and interest		1,286		879			4,602
Expense reimbursement from Manager		8,529		4			–
Fund shares sold		4,945		444			10,912
Other assets		2		–			–
Total Assets		945,440		155,347			2,299,723
Liabilities
Accrued management and investment advisory fees		–		71			1,454
Accrued distribution fees		148		–			179
Accrued transfer agent fees		1,329		1			212
Accrued directors' expenses		2,282		3			5
Accrued professional fees		14,822		27			25
Accrued registration fees		2,188		–			–
Accrued other expenses		177		9			76
Payables:
Dividends payable		–		425			–
Fund shares redeemed		–		28			1,877
Investment securities purchased		6,232		–			4,695
Total Liabilities		27,178		564			8,523
Net Assets Applicable to Outstanding Shares	$	918,262	$	154,783		$	2,291,200
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	883,720	$	152,700		$	1,993,907
Accumulated undistributed (overdistributed) net investment income (loss)		1,742		33			44,586
Accumulated undistributed (overdistributed) net realized gain (loss)		4,476		3			(52,733	)
Net unrealized appreciation (depreciation) of investments		28,324		2,047			305,442
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–		–			(2	)
Total Net Assets	$	918,262	$	154,783		$	2,291,200
Capital Stock (par value: $.01 per share):
Shares authorized		200,000,000		300,000			1,700,000
Net Asset Value Per Share:
Class A: Net Assets	$	729,997	$	831	$		207,431
Shares Issued and Outstanding		70,513		83			13,877
Net Asset Value per share	$	10.35	$	9.97	$		14.95
Maximum Offering Price	$	10.95	$	10.36	$		15.82
Class C: Net Assets		N/A		N/A	$		165,335
Shares Issued and Outstanding							11,139
Net Asset Value per share					$		14.84	^(a)
Class P: Net Assets		N/A	$	136	$		775,969
Shares Issued and Outstanding				14			51,200
Net Asset Value per share			$	9.87	$		15.16
Institutional: Net Assets	$	188,265	$	153,816	$		1,142,465
Shares Issued and Outstanding		18,071		15,583			76,102
Net Asset Value per share	$	10.42	$	9.87	$		15.01


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended August 31, 2016



					Credit Opportunities			Diversified Real
Amounts in thousands	Blue Chip Fund^(a)				Explorer Fund			Asset Fund^(a),(b)
Net Investment Income (Loss)
Income:
Dividends	$	13,324		$	–		$	68,085
Withholding tax		(460	)		–			(1,973	)
Interest		5			799			38,647
Total Income		12,869			799			104,759
Expenses:
Management and investment advisory fees		8,675			112			29,316
Distribution fees - Class A		73			23			241
Distribution fees - Class C		165			N/A			359
Registration fees - Class A		22			20			15
Registration fees - Class C		18			N/A			15
Registration fees - Class P		14			N/A			47
Registration fees - Institutional		2			19			44
Registration fees - R-6		N/A			N/A			18
Shareholder reports - Class A		18			–			55
Shareholder reports - Class C		8			N/A			24
Shareholder reports - Class P		2			N/A			167
Shareholder reports - Institutional		–			–			297
Shareholder reports - R-6		N/A			N/A			1
Transfer agent fees - Class A		58			9			129
Transfer agent fees - Class C		38			N/A			67
Transfer agent fees - Class P		8			N/A			761
Transfer agent fees - Institutional		1			–			1,181
Custodian fees		3			4			178
Directors' expenses		26			3			73
Professional fees		27			30			197
Other expenses		12			1			33
Total Gross Expenses		9,170			221			33,218
Less: Reimbursement from Manager - Class A		–			25			28
Less: Reimbursement from Manager - Class C		–			N/A			43
Less: Reimbursement from Manager - Class P		–			N/A			394
Less: Reimbursement from Manager - Institutional		–			29			–
Less: Reimbursement from Manager - R-6		N/A			N/A			14
Total Net Expenses		9,170			167			32,739
Net Investment Income (Loss)		3,699			632			72,020

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		14,125			(375	)		(353,416	)
Foreign currency transactions		–			(4	)		(6,572	)
Futures contracts		–			(204	)		6,910
Options and swaptions		–			–			3,760
Swap agreements		–			(77	)		(2,260	)
Change in unrealized appreciation/depreciation of:
Investments		121,600			957			248,869
Futures contracts		–			8			(67	)
Options and swaptions		–			–			387
Swap agreements		–			(56	)		696
Translation of assets and liabilities in foreign currencies		–			–			(3,180	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		135,725			249			(104,873	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	139,424		$	881		$	(32,853	)


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended August 31, 2016

								Global Opportunities
	Dynamic High Yield				Global Multi-			Equity Hedged
Amounts in thousands	Explorer Fund				Strategy Fund			Fund^(a)
Net Investment Income (Loss)
Income:
Dividends	$	–		$	24,593		$	171
Withholding tax		–			(587	)		(12	)
Interest		825			52,243			–
Total Income		825			76,249			159
Expenses:
Management and investment advisory fees		90			46,936			75
Distribution fees - Class A		18			403			6
Distribution fees - Class C		N/A			606			N/A
Registration fees - Class A		20			42			22
Registration fees - Class C		N/A			21			N/A
Registration fees - Class P		N/A			51			23
Registration fees - Institutional		20			19			22
Shareholder reports - Class A		1			27			–
Shareholder reports - Class C		N/A			11			N/A
Shareholder reports - Class P		N/A			38			–
Shareholder reports - Institutional		–			91			–
Transfer agent fees - Class A		10			102			9
Transfer agent fees - Class C		N/A			74			N/A
Transfer agent fees - Class P		N/A			275			–
Transfer agent fees - Institutional		–			361			–
Custodian fees		1			403			23
Directors' expenses		3			61			2
Dividends and interest on securities sold short		–			12,537			–
Professional fees		39			243			29
Short sale fees		–			805			–
Other expenses		2			32			2
Reverse repurchase agreement interest expense		–			800			–
Total Gross Expenses		204			63,938			213
Less: Reimbursement from Manager - Class A		40			–			46
Less: Reimbursement from Manager - Class C		N/A			9			N/A
Less: Reimbursement from Manager - Class P		N/A			–			37
Less: Reimbursement from Manager - Institutional		35			–			38
Total Net Expenses		129			63,929			92
Net Investment Income (Loss)		696			12,320			67

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		(906	)		(18,701	)		(81	)
Foreign currency transactions		–			(3,294	)		(9	)
Futures contracts		–			(1,779	)		(595	)
Options and swaptions		–			8,424			–
Short sales		–			2,765			–
Swap agreements		–			10,069			–
Change in unrealized appreciation/depreciation of:
Investments		582			110,059			294
Futures contracts		–			(19,760	)		(321	)
Options and swaptions		–			8,340			–
Short sales		–			(47,199	)		–
Swap agreements		–			(7,637	)		–
Translation of assets and liabilities in foreign currencies		–			(7,569	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(324	)		33,718			(712	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	372		$	46,038		$	(645	)


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended August 31, 2016

								Multi-Manager
		Global			International Small			Equity
Amounts in thousands	Opportunities Fund				Company Fund			Long/Short Fund^(a)
Net Investment Income (Loss)
Income:
Dividends	$	32,206		$	1,135		$	1,402
Withholding tax		(1,805	)		(99	)		(71	)
Interest		61			3			55
Total Income		30,462			1,039			1,386
Expenses:
Management and investment advisory fees		10,671			532			1,494
Distribution fees - Class A		11			12			–
Distribution fees - Class C		17			N/A			N/A
Registration fees - Class A		13			11			19
Registration fees - Class C		13			N/A			N/A
Registration fees - Class P		13			11			20
Registration fees - Institutional		19			26			19
Registration fees - R-6		N/A			N/A			19
Shareholder reports - Class A		4			1			–
Shareholder reports - Class C		1			N/A			N/A
Transfer agent fees - Class A		19			15			5
Transfer agent fees - Class C		13			N/A			N/A
Transfer agent fees - Class P		1			1			–
Transfer agent fees - Institutional		1			3			–
Custodian fees		78			60			28
Directors' expenses		28			3			2
Dividends and interest on securities sold short		–			–			590
Professional fees		120			29			28
Short sale fees		–			–			157
Other expenses		8			2			19
Total Gross Expenses		11,030			706			2,400
Less: Reimbursement from Manager - Class A		19			42			25
Less: Reimbursement from Manager - Class C		21			N/A			N/A
Less: Reimbursement from Manager - Class P		13			24			20
Less: Reimbursement from Manager - Institutional		–			11			20
Less: Reimbursement from Manager - R-6		N/A			N/A			65
Total Net Expenses		10,977			629			2,270
Net Investment Income (Loss)		19,485			410			(884	)

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		(14,828	)		(2,646	)		785
Foreign currency transactions		(675	)		28			513
Futures contracts		–			–			(1,489	)
Net increase from payments by affiliates		–			–			126
Options and swaptions		–			–			(43	)
Short sales		–			–			(3,170	)
Swap agreements		–			–			1,083
Change in unrealized appreciation/depreciation of:
Investments		37,011			2,898			6,024
Futures contracts		–			–			(950	)
Short sales		–			–			(610	)
Swap agreements		–			–			415
Translation of assets and liabilities in foreign currencies		(33	)		–			20
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		21,475			280			2,704
Net Increase (Decrease) in Net Assets Resulting from Operations	$	40,960		$	690		$	1,820


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended August 31, 2016

	Opportunistic			Origin Emerging			Preferred
Amounts in thousands	Municipal Fund			Markets Fund^(a)			Securities Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated securities	$	–	$	–		$	9,081
Dividends		40		18,627			104,767
Withholding tax		–		(2,295	)		(89	)
Interest		4,261		42			193,033
Total Income		4,301		16,374			306,792
Expenses:
Management and investment advisory fees		483		9,346			36,344
Distribution fees - Class A		92		1			2,017
Distribution fees - Class C		133		N/A			8,104
Distribution fees - Class J		N/A		N/A			87
Distribution fees - R-1		N/A		N/A			6
Distribution fees - R-2		N/A		N/A			5
Distribution fees - R-3		N/A		N/A			9
Distribution fees - R-4		N/A		N/A			1
Administrative service fees - R-1		N/A		N/A			5
Administrative service fees - R-2		N/A		N/A			3
Administrative service fees - R-3		N/A		N/A			3
Registration fees - Class A		26		16			79
Registration fees - Class C		16		N/A			35
Registration fees - Class J		N/A		N/A			17
Registration fees - Class P		23		18			123
Registration fees - Institutional		18		2			190
Registration fees - R-6		N/A		20			N/A
Service fees - R-1		N/A		N/A			4
Service fees - R-2		N/A		N/A			4
Service fees - R-3		N/A		N/A			9
Service fees - R-4		N/A		N/A			3
Service fees - R-5		N/A		N/A			10
Shareholder reports - Class A		1		1			76
Shareholder reports - Class C		1		N/A			50
Shareholder reports - Class J		N/A		N/A			8
Shareholder reports - Class P		1		–			56
Shareholder reports - Institutional		–		–			139
Transfer agent fees - Class A		19		9			780
Transfer agent fees - Class C		13		N/A			764
Transfer agent fees - Class J		N/A		N/A			77
Transfer agent fees - Class P		13		–			1,396
Transfer agent fees - Institutional		–		9			970
Custodian fees		1		269			22
Directors' expenses		5		15			109
Interest expense and fees		46		–			–
Professional fees		30		33			43
Other expenses		3		8			58
Total Gross Expenses		924		9,747			51,606
Less: Reimbursement from Manager - Class A		7		26			–
Less: Reimbursement from Manager - Class C		16		N/A			–
Less: Reimbursement from Manager - Class P		–		19			–
Less: Reimbursement from Manager - Institutional		18		–			–
Less: Reimbursement from Manager - R-6		N/A		20			N/A
Less: Reimbursement from Distributor - Class J		N/A		N/A			19
Total Net Expenses		883		9,682			51,587
Net Investment Income (Loss)		3,418		6,692			255,205

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		111		(128,603	)		(46,201	)
Foreign currency transactions		–		(1,341	)		–
Futures contracts		–		(2,662	)		50,888
Options and swaptions		–		–			48,325
Change in unrealized appreciation/depreciation of:
Investments		7,099		175,536			53,290
Investment in affiliated securities		–		–			(3,182	)
Futures contracts		–		2,825			–
Options and swaptions		–		–			1,474
Translation of assets and liabilities in foreign currencies		–		43			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		7,210		45,798			104,594
Net Increase (Decrease) in Net Assets Resulting from Operations	$	10,628	$	52,490		$	359,799
^(a)Class P shares commenced operations on March 29, 2016.


STATEMENTS OF OPERATIONS
PRINCIPAL FUNDS, INC.
Year Ended August 31, 2016

						Small-MidCap
	Real Estate			Real Estate Debt		Dividend
Amounts in thousands, except Real Estate Allocation Fund	Allocation Fund			Income Fund		Income Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	15,383	$	–	$	–
Dividends		–		1		67,742
Withholding tax		–		–		(272	)
Interest		–		2,926		80
Securities lending - net		–		–		200
Total Income		15,383		2,927		67,750
Expenses:
Management and investment advisory fees		N/A		413		14,083
Distribution fees - Class A		1,260		40		414
Distribution fees - Class C		N/A		N/A		1,378
Registration fees - Class A		17,059		15		21
Registration fees - Class C		N/A		N/A		21
Registration fees - Class P		N/A		16		28
Registration fees - Institutional		16,668		21		27
Shareholder reports - Class A		821		1		28
Shareholder reports - Class C		N/A		N/A		17
Shareholder reports - Class P		N/A		–		30
Shareholder reports - Institutional		7		–		37
Transfer agent fees - Class A		10,778		10		190
Transfer agent fees - Class C		N/A		N/A		185
Transfer agent fees - Class P		N/A		–		500
Transfer agent fees - Institutional		158		–		346
Custodian fees		–		1		6
Directors' expenses		2,214		4		38
Professional fees		16,190		30		30
Other expenses		1,206		3		18
Total Gross Expenses		66,361		554		17,397
Less: Reimbursement from Manager - Class A		44,225		6		–
Less: Reimbursement from Manager - Class P		N/A		17		–
Less: Reimbursement from Manager - Institutional		19,488		–		–
Total Net Expenses		2,648		531		17,397
Net Investment Income (Loss)		12,735		2,396		50,353

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		–		4		(30,781	)
Investment transactions in affiliated Funds		703		–		–
Foreign currency transactions		–		–		(4	)
Capital gain distribution received from affiliated Funds		3,841		–		–
Change in unrealized appreciation/depreciation of:
Investments		–		2,979		368,562
Investments in affiliated Funds		46,748		–		–
Translation of assets and liabilities in foreign currencies		–		–		(4	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		51,292		2,983		337,773
Net Increase (Decrease) in Net Assets Resulting from Operations	$	64,027	$	5,379	$	388,126


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																	Blue Chip Fund
																	Year Ended		Year Ended
																	August 31, 2016		August 31, 2015
Operations
Net investment income (loss)																$	3,699		$	4,998
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																	14,125			16,220
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																	121,600			1,171
				Net Increase (Decrease) in Net Assets Resulting from Operations													139,424			22,389

Dividends and Distributions to Shareholders
From net investment income																	(5,301	)		(3,203	)
From net realized gain on investments																	(24,809	)		(13,610	)
												Total Dividends and Distributions					(30,110	)		(16,813	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																	(41,971	)		824,418
										Total Increase (Decrease) in Net Assets							67,343			829,994

Net Assets
Beginning of period																	1,265,729			435,735
End of period (including undistributed net investment income as set forth below)																$	1,333,072		$	1,265,729
Undistributed (overdistributed) net investment income (loss)																$	2,173		$	3,777

		Class A		Class C				Class P		Institutional		R-3		R-4		R-5
Capital Share Transactions:
Year Ended August 31, 2016^(a)
Dollars:
Sold	$	19,421	$	12,276		$		17,498	$	45,737	$	10	$	10	$	10
Reinvested		524		288				364		28,919		–		–		–
Redeemed		(6,850	)	(4,435	)			(8,204	)	(147,539	)	–		–		–
Net Increase (Decrease)	$	13,095	$	8,129		$		9,658	$	(72,883	) $	10	$	10	$	10
Shares:
Sold		1,248		803				1,109		2,959		1		1		1
Reinvested		34		19				23		1,852		–		–		–
Redeemed		(440	)	(290	)			(543	)	(9,322	)	–		–		–
Net Increase (Decrease)		842		532				589		(4,511	)	1		1		1
Year Ended August 31, 2015
Dollars:
Sold	$	15,335	$	9,519		$		6,302		$ 959,697		N/A		N/A		N/A
Reinvested		258		119				41		16,383		N/A		N/A		N/A
Redeemed		(3,723	)	(897	)			(1,426	)	(177,190	)	N/A		N/A		N/A
Net Increase (Decrease)	$	11,870	$	8,741		$		4,917		$ 798,890		N/A		N/A		N/A
Shares:
Sold		982		610				390		60,682		N/A		N/A		N/A
Reinvested		17		8				3		1,094		N/A		N/A		N/A
Redeemed		(243	)	(58	)			(95	)	(11,172	)	N/A		N/A		N/A
Net Increase (Decrease)		756		560				298		50,604		N/A		N/A		N/A

Distributions:
Year Ended August 31, 2016^(a)
From net investment income $		(11	) $	–		$		(59	) $	(5,231	) $	– $		– $		–
From net realized gain on
investments		(518	)	(288	)			(305	)	(23,698	)	–		–		–
Total Dividends and Distributions $		(529	) $	(288)			$	(364	) $	(28,929	) $	– $		– $		–
Year Ended August 31, 2015
From net investment income $		(17	) $	–		$		(5	) $	(3,181	)	N/A		N/A		N/A
From net realized gain on
investments		(253	)	(119	)			(36	)	(13,202	)	N/A		N/A		N/A
Total Dividends and Distributions $		(270	) $	(119)			$	(41	) $	(16,383	)	N/A		N/A		N/A


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands								Credit Opportunities Explorer Fund
								Year Ended		Period Ended
								August 31, 2016		August 31, 2015^(a)
Operations
Net investment income (loss)							$	632		$	747
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								(660	)		(521	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies								909			(783	)
					Net Increase (Decrease) in Net Assets Resulting from Operations			881			(557	)

Dividends and Distributions to Shareholders
From net investment income								(570	)		(720	)
					Total Dividends and Distributions			(570	)		(720	)

Capital Share Transactions
Net increase (decrease) in capital share transactions								238			20,104
					Total Increase (Decrease) in Net Assets			549			18,827

Net Assets
Beginning of period								18,827			–
End of period (including undistributed net investment income as set forth below)							$	19,376		$	18,827
Undistributed (overdistributed) net investment income (loss)							$	64		$	26
			Class A		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold		$	67	$	174
Reinvested			3		2
Redeemed			(7	)	(1	)
Net Increase (Decrease)		$	63	$	175
Shares:
Sold			7		19
Reinvested			1		–
Redeemed			(1	)	–
Net Increase (Decrease)			7		19
Period Ended August 31, 2015^(a)
Dollars:
Sold	$	10,102		$	10,000
Reinvested			2		–
Net Increase (Decrease)		$	10,104	$	10,000
Shares:
Sold			1,011		1,000
Net Increase (Decrease)			1,011		1,000

Distributions:
Year Ended August 31, 2016
From net investment income$			(271	) $	(299	)
From net realized gain on
investments			–		–
Total Dividends and Distributions $			(271	) $	(299	)
Period Ended August 31, 2015^(a)
From net investment income$			(347	) $	(373	)
From net realized gain on
investments			–		–
Total Dividends and Distributions $			(347	) $	(373	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																	Diversified Real Asset Fund^(a)
																	Year Ended				Year Ended
																	August 31, 2016				August 31, 2015
Operations
Net investment income (loss)																	$		72,020		$	52,011
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																			(351,578	)		(126,427	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																			246,705			(410,687	)
					Net Increase (Decrease) in Net Assets Resulting from Operations														(32,853	)		(485,103	)

Dividends and Distributions to Shareholders
From net investment income																			(36,288	)		(33,105	)
From net realized gain on investments																			–			(35,325	)
											Total Dividends and Distributions								(36,288	)		(68,430	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																			91,017			1,265,798
									Total Increase (Decrease) in Net Assets										21,876			712,265

Net Assets
Beginning of period																			3,694,312			2,982,047
End of period (including undistributed net investment income as set forth below)																	$		3,716,188		$	3,694,312
Undistributed (overdistributed) net investment income (loss)																	$		93,211		$	76,371
			Class A		Class C		Class P		Institutional		R-3		R-4		R-5		R-6
Capital Share Transactions:
Year Ended August 31, 2016^(b)
Dollars:
Sold	$	165,599		$	3,159		$ 110,867		$ 1,235,726	$	10	$	10	$	10	$	53,784
Reinvested			451		–		2,773		31,461		–		–		–		18
Redeemed			(60,549	)	(16,070	)	(342,462)		(1,067,664)		–		–		–		(26,106	)
Net Increase (Decrease)	$	105,501			$ (12,911)		$ (228,822)	$	199,523	$	10	$	10	$	10	$	27,696
Shares:
Sold			14,973		305		10,380		116,270		1		1		1		4,976
Reinvested			43		–		266		3,011		–		–		–		2
Redeemed			(5,733	)	(1,547	)	(32,473	)	(101,291	)	–		–		–		(2,379	)
Net Increase (Decrease)			9,283		(1,242	)	(21,827	)	17,990		1		1		1		2,599
Year Ended August 31, 2015^(c)
Dollars:
Sold		$	54,362	$	10,722		$ 207,460		$ 1,894,082		N/A		N/A		N/A	$	872
Reinvested			2,068		494		6,441		55,907		N/A		N/A		N/A		–
Redeemed			(54,238	)	(13,074	)	(71,914	)	(827,347	)	N/A		N/A		N/A		(37	)
Net Increase (Decrease)		$	2,192	$	(1,858)		$ 141,987		$ 1,122,642		N/A		N/A		N/A	$	835
Shares:
Sold			4,438		890		16,987		154,829		N/A		N/A		N/A		75
Reinvested			171		42		534		4,623		N/A		N/A		N/A		–
Redeemed			(4,475	)	(1,106	)	(5,991	)	(68,376	)	N/A		N/A		N/A		(3	)
Net Increase (Decrease)			134		(174	)	11,530		91,076		N/A		N/A		N/A		72

Distributions:
Year Ended August 31, 2016^(b)
From net investment income $			(471	) $	– $		(2,999	) $	(32,800	) $	– $		–	$	–	$	(18	)
From net realized gain on
investments			–		–		–		–		–		–		–		–
Total Dividends and Distributions $			(471	) $	– $		(2,999	) $	(32,800	) $	– $		–	$	–	$	(18	)
Year Ended August 31, 2015^(c)
From net investment income $			(862	) $	– $		(3,198	) $	(29,045	)	N/A		N/A		N/A	$	–
From net realized gain on
investments			(1,366	)	(594	)	(3,762	)	(29,603	)	N/A		N/A		N/A		–
Total Dividends and Distributions $			(2,228	) $	(594	) $	(6,960	) $	(58,648	)	N/A		N/A		N/A	$	–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands							Dynamic High Yield Explorer Fund
							Year Ended		Period Ended
							August 31, 2016		August 31, 2015^(a)
Operations
Net investment income (loss)						$	696		$	639
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements							(906	)		(320	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies							582			(612	)
				Net Increase (Decrease) in Net Assets Resulting from Operations			372			(293	)

Dividends and Distributions to Shareholders
From net investment income							(751	)		(634	)
				Total Dividends and Distributions			(751	)		(634	)

Capital Share Transactions
Net increase (decrease) in capital share transactions							(277	)		15,749
				Total Increase (Decrease) in Net Assets			(656	)		14,822

Net Assets
Beginning of period							14,822			–
End of period (including undistributed net investment income as set forth below)						$	14,166		$	14,822
Undistributed (overdistributed) net investment income (loss)						$	(10	)	$	15
		Class A		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	118	$	15
Reinvested		18		1
Redeemed		(422	)	(7	)
Net Increase (Decrease)	$	(286	) $	9
Shares:
Sold		13		2
Reinvested		2		–
Redeemed		(45	)	(1	)
Net Increase (Decrease)		(30	)	1

Period Ended August 31, 2015^(a)
Dollars:
Sold	$	8,329	$	7,514
Reinvested		16		–
Redeemed		(109	)	(1	)
Net Increase (Decrease)	$	8,236	$	7,513
Shares:
Sold		835		751
Reinvested		2		–
Redeemed		(12	)	–
Net Increase (Decrease)		825		751

Distributions:
Year Ended August 31, 2016
From net investment income$		(380	) $	(371	)
From net realized gain on
investments		–		–
Total Dividends and Distributions $		(380	) $	(371	)

Period Ended August 31, 2015^(a)
From net investment income$		(318	) $	(316	)
From net realized gain on
investments		–		–
Total Dividends and Distributions $		(318	) $	(316	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands												Global Multi-Strategy Fund
												Year Ended		Year Ended
												August 31, 2016		August 31, 2015
Operations
Net investment income (loss)											$	12,320		$	(7,367	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements												(2,516	)		82,470
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies												36,234			(59,881	)
					Net Increase (Decrease) in Net Assets Resulting from Operations							46,038			15,222

Dividends and Distributions to Shareholders
From net investment income												(24,184	)		(19,599	)
From net realized gain on investments												(64,579	)		(34,303	)
									Total Dividends and Distributions			(88,763	)		(53,902	)

Capital Share Transactions
Net increase (decrease) in capital share transactions												(408,924	)		1,372,288
									Total Increase (Decrease) in Net Assets			(451,649	)		1,333,608

Net Assets
Beginning of period												3,205,677			1,872,069
End of period (including undistributed net investment income as set forth below)											$	2,754,028		$	3,205,677
Undistributed (overdistributed) net investment income (loss)											$	(2,623	)	$	7,487
			Class A		Class C		Class P		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold		$	71,294	$	16,274		$ 168,441		$722,819
Reinvested			4,173		1,208		6,741		63,629
Redeemed			(111,180	)	(20,162	)	(166,821)		(1,165,340)
Net Increase (Decrease)	$	(35,713		) $	(2,680	) $	8,361		$ (378,892)
Shares:
Sold			6,722		1,550		15,780		67,670
Reinvested			395		116		635		5,972
Redeemed			(10,450	)	(1,934	)	(15,732	)	(108,839	)
Net Increase (Decrease)			(3,333	)	(268	)	683		(35,197	)
Year Ended August 31, 2015
Dollars:
Sold	$	149,603		$	29,624		$ 198,204		$ 1,386,946
Reinvested			2,092		636		3,427		39,324
Redeemed			(59,728	)	(11,724	)	(126,442	)	(239,674	)
Net Increase (Decrease)		$	91,967	$	18,536	$	75,189		$ 1,186,596
Shares:
Sold			13,524		2,713		17,847		124,779
Reinvested			192		59		313		3,576
Redeemed			(5,390	)	(1,076	)	(11,368	)	(21,477	)
Net Increase (Decrease)			8,326		1,696		6,792		106,878

Distributions:
Year Ended August 31, 2016
From net investment income $			(889	) $	– $		(2,416	) $	(20,879	)
From net realized gain on
investments			(3,482	)	(1,372	)	(6,513	)	(53,212	)
Total Dividends and Distributions $			(4,371	) $	(1,372	) $	(8,929	) $	(74,091	)
Year Ended August 31, 2015
From net investment income $			(553	) $	– $		(1,512	) $	(17,534	)
From net realized gain on
investments			(1,640	)	(714	)	(2,801	)	(29,148	)
Total Dividends and Distributions $			(2,193	) $	(714	) $	(4,313	) $	(46,682	)


						STATEMENT OF CHANGES IN NET ASSETS
						PRINCIPAL FUNDS, INC.


									Global
									Opportunities
									Equity Hedged
Amounts in thousands									Fund
									Period Ended
									August 31, 2016^(a)
Operations
Net investment income (loss)								$	67
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements									(685	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies									(27	)
				Net Increase (Decrease) in Net Assets Resulting from Operations					(645	)

Dividends and Distributions to Shareholders
From net investment income									(10	)
						Total Dividends and Distributions			(10	)

Capital Share Transactions
Net increase (decrease) in capital share transactions									7,571
						Total Increase (Decrease) in Net Assets			6,916

Net Assets
Beginning of period									–
End of period (including undistributed net investment income as set forth below)								$	6,916
Undistributed (overdistributed) net investment income (loss)								$	49
		Class A		Class P		Institutional
Capital Share Transactions:
Period Ended August 31, 2016^(a)
Dollars:
Sold	$	2,622	$	2,500	$	2,500
Redeemed		(51	)	–		–
Net Increase (Decrease)	$	2,571	$	2,500	$	2,500
Shares:
Sold		262		250		250
Redeemed		(5	)	–		–
Net Increase (Decrease)		257		250		250

Distributions:
Period Ended August 31, 2016^(a)
From net investment income $		(4	) $	(3	) $	(3	)
From net realized gain on
investments		–		–		–
Total Dividends and Distributions $		(4	) $	(3	) $	(3	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands											Global Opportunities Fund
											Year Ended		Year Ended
											August 31, 2016		August 31, 2015
Operations
Net investment income (loss)										$	19,485		$	19,155
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements											(15,503	)		9,487
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies											36,978			(79,815	)
				Net Increase (Decrease) in Net Assets Resulting from Operations							40,960			(51,173	)

Dividends and Distributions to Shareholders
From net investment income											(17,170	)		(13,001	)
From net realized gain on investments											(11,153	)		(121,684	)
								Total Dividends and Distributions			(28,323	)		(134,685	)

Capital Share Transactions
Net increase (decrease) in capital share transactions											52,905			39,902
								Total Increase (Decrease) in Net Assets			65,542			(145,956	)

Net Assets
Beginning of period											1,262,057			1,408,013
End of period (including undistributed net investment income as set forth below)										$	1,327,599		$	1,262,057
Undistributed (overdistributed) net investment income (loss)										$	18,782		$	17,150
		Class A		Class C		Class P		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	1,942	$	645	$	237		$ 293,433
Reinvested		70		17		11		28,218
Redeemed		(1,179	)	(614	)	(879	)	(268,996	)
Net Increase (Decrease)	$	833	$	48	$	(631	) $	52,655
Shares:
Sold		172		57		21		26,081
Reinvested		6		1		1		2,433
Redeemed		(104	)	(55	)	(78	)	(23,864	)
Net Increase (Decrease)		74		3		(56	)	4,650
Year Ended August 31, 2015
Dollars:
Sold	$	2,442	$	767	$	959		$ 223,063
Reinvested		261		192		51		134,179
Redeemed		(724	)	(1,155	)	(149	)	(319,984	)
Net Increase (Decrease)	$	1,979	$	(196	) $	861	$	37,258
Shares:
Sold		202		63		77		17,613
Reinvested		23		17		4		11,557
Redeemed		(60	)	(97	)	(12	)	(25,293	)
Net Increase (Decrease)		165		(17	)	69		3,877

Distributions:
Year Ended August 31, 2016
From net investment income $		(35	) $	(2	) $	(7	) $	(17,126	)
From net realized gain on
investments		(38	)	(16	)	(5	)	(11,094	)
Total Dividends and Distributions $		(73	) $	(18	) $	(12	) $	(28,220	)
Year Ended August 31, 2015
From net investment income $		(14	) $	– $		(5	) $	(12,982	)
From net realized gain on
investments		(248	)	(193	)	(46	)	(121,197	)
Total Dividends and Distributions $		(262	) $	(193	) $	(51) $		(134,179	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands									International Small Company Fund
									Year Ended		Year Ended
									August 31, 2016		August 31, 2015
Operations
Net investment income (loss)								$	410		$	77
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements									(2,618	)		(586	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies									2,898			114
				Net Increase (Decrease) in Net Assets Resulting from Operations					690			(395	)

Dividends and Distributions to Shareholders
From net investment income									(181	)		(37	)
						Total Dividends and Distributions			(181	)		(37	)

Capital Share Transactions
Net increase (decrease) in capital share transactions									157,298			6,086
						Total Increase (Decrease) in Net Assets			157,807			5,654

Net Assets
Beginning of period									13,162			7,508
End of period (including undistributed net investment income as set forth below)								$	170,969		$	13,162
Undistributed (overdistributed) net investment income (loss)								$	406		$	86

		Class A		Class P		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	1,165	$	– $		167,975
Reinvested		26		–		64
Redeemed		(4,764	)	(4,232	)	(2,936	)
Net Increase (Decrease)	$	(3,573	) $	(4,232	) $	165,103
Shares:
Sold		123		–		17,079
Reinvested		3		–		7
Redeemed		(489	)	(432	)	(329	)
Net Increase (Decrease)		(363	)	(432	)	16,757
Year Ended August 31, 2015^(a)
Dollars:
Sold	$	2,038	$	1,463	$	3,580
Reinvested		1		–		–
Redeemed		(471	)	(462	)	(63	)
Net Increase (Decrease)	$	1,568	$	1,001	$	3,517
Shares:
Sold		207		144		357
Redeemed		(48	)	(46	)	(6	)
Net Increase (Decrease)		159		98		351

Distributions:
Year Ended August 31, 2016
From net investment income $		(74	) $	(43	) $	(64	)
From net realized gain on
investments		–		–		–
Total Dividends and Distributions $		(74	) $	(43	) $	(64	)
Year Ended August 31, 2015^(a)
From net investment income $		(20	) $	(17	) $	–
From net realized gain on
investments		–		–		–
Total Dividends and Distributions $		(20	) $	(17	) $	–


						STATEMENT OF CHANGES IN NET ASSETS
						PRINCIPAL FUNDS, INC.


										Multi-Manager
										Equity
										Long/Short
Amounts in thousands										Fund
										Period Ended
										August 31, 2016^(a)
Operations
Net investment income (loss)									$	(884	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements										(2,195	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies										4,899
				Net Increase (Decrease) in Net Assets Resulting from Operations						1,820


Capital Share Transactions
Net increase (decrease) in capital share transactions										324,242
								Total Increase (Decrease) in Net Assets		326,062

Net Assets
Beginning of period										–
End of period (including undistributed net investment income as set forth below)									$	326,062
Undistributed (overdistributed) net investment income (loss)									$	881
		Class A		Class P		Institutional		R-6
Capital Share Transactions:
Period Ended August 31, 2016^(a)
Dollars:
Sold	$	55	$	10	$	10		$ 324,461
Redeemed		–		–		–		(294
Net Increase (Decrease)	$	55	$	10	$	10	$324,167
Shares:
Sold		6		1		1		32,648
Redeemed		–		–		–		(29)
Net Increase (Decrease)		6		1		1		32,619

Distributions:
Period Ended August 31, 2016^(a)
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											Opportunistic Municipal Fund
											Year Ended		Year Ended
											August 31, 2016		August 31, 2015
Operations
Net investment income (loss)										$	3,418		$	1,211
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements											111			153
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies											7,099			(19	)
				Net Increase (Decrease) in Net Assets Resulting from Operations							10,628			1,345

Dividends and Distributions to Shareholders
From net investment income											(3,302	)		(1,171	)
								Total Dividends and Distributions			(3,302	)		(1,171	)

Capital Share Transactions
Net increase (decrease) in capital share transactions											84,228			23,023
								Total Increase (Decrease) in Net Assets			91,554			23,197

Net Assets
Beginning of period											48,750			25,553
End of period (including undistributed net investment income as set forth below)										$	140,304		$	48,750
Undistributed (overdistributed) net investment income (loss)										$	206		$	94
		Class A		Class C		Class P		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	34,745	$	6,664	$	60,056	$	3,504
Reinvested		952		145		1,663		35
Redeemed		(11,821	)	(1,261	)	(10,429	)	(25	)
Net Increase (Decrease)	$	23,876	$	5,548	$	51,290	$	3,514
Shares:
Sold		3,260		629		5,653		325
Reinvested		89		13		155		3
Redeemed		(1,100	)	(118	)	(973	)	(2	)
Net Increase (Decrease)		2,249		524		4,835		326
Year Ended August 31, 2015^(a)
Dollars:
Sold	$	10,767	$	1,310	$	16,215	$	10
Reinvested		381		54		120		–
Redeemed		(5,022	)	(691	)	(121	)	–
Net Increase (Decrease)	$	6,126	$	673	$	16,214	$	10
Shares:
Sold		1,051		129		1,581		1
Reinvested		37		5		12		–
Redeemed		(492	)	(68	)	(12	)	–
Net Increase (Decrease)		596		66		1,581		1

Distributions:
Year Ended August 31, 2016
From net investment income $		(1,245	) $	(358	) $	(1,664	) $	(35	)
From net realized gain on
investments		–		–		–		–
Total Dividends and Distributions $		(1,245	) $	(358	) $	(1,664	) $	(35	)
Year Ended August 31, 2015^(a)
From net investment income $		(746	) $	(305	) $	(120	) $	–
From net realized gain on
investments		–		–		–		–
Total Dividends and Distributions $		(746	) $	(305	) $	(120	) $	–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands															Origin Emerging Markets Fund
															Year Ended		Period Ended
															August 31, 2016		August 31, 2015^(a)
Operations
Net investment income (loss)														$	6,692		$	8,483
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements															(132,606	)		(69,773	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies															178,404			(110,448	)
				Net Increase (Decrease) in Net Assets Resulting from Operations											52,490			(171,738	)

Dividends and Distributions to Shareholders
From net investment income															(7,563	)		–
												Total Dividends and Distributions			(7,563	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions															(82,612	)		988,068
												Total Increase (Decrease) in Net Assets			(37,685	)		816,330

Net Assets
Beginning of period															816,330			–
End of period (including undistributed net investment income as set forth below)														$	778,645		$	816,330
Undistributed (overdistributed) net investment income (loss)														$	5,349		$	7,562
		Class A		Class P				Institutional				R-6
Capital Share Transactions:
Year Ended August 31, 2016^(b)
Dollars:
Sold	$	270	$	10			$	209,412		$		–
Reinvested		2		–				7,559				–
Redeemed		(102	)	–				(299,763	)			–
Net Increase (Decrease)	$	170	$	10			$	(82,792)			$	–
Shares:
Sold		32		1				26,073				–
Reinvested		–		–				914				–
Redeemed		(13	)	–				(37,173	)			–
Net Increase (Decrease)		19		1				(10,186	)			–

Period Ended August 31, 2015^(a)
Dollars:
Sold	$	4,285		N/A	$	1,011,795					$	3,000
Redeemed		(3,965	)	N/A				(24,197	)			(2,850	)
Net Increase (Decrease)	$	320		N/A		$		987,598		$		150
Shares:
Sold		428		N/A				99,465				300
Redeemed		(403	)	N/A				(2,539	)			(290	)
Net Increase (Decrease)		25		N/A				96,926				10

Distributions:
Year Ended August 31, 2016^(b)
From net investment income $		(3	) $	–		$		(7,559)			$	(1	)
From net realized gain on
investments		–		–				–				–
Total Dividends and Distributions $		(3	) $	–		$		(7,559)			$	(1	)

Period Ended August 31, 2015^(a)
From net investment income $		–		N/A		$		–		$		–
From net realized gain on
investments		–		N/A				–				–
Total Dividends and Distributions $		–		N/A		$		–		$		–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands															Preferred Securities Fund
															Year Ended						Year Ended
															August 31, 2016						August 31, 2015
Operations
Net investment income (loss)															$		255,205				$		236,958
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																			53,012				49,548
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																			51,582				(106,620	)
				Net Increase (Decrease) in Net Assets Resulting from Operations													359,799						179,886

Dividends and Distributions to Shareholders
From net investment income																	(246,710			)			(243,775	)
From net realized gain on investments																			(42,753	)			(83,916	)
									Total Dividends and Distributions								(289,463			)			(327,691	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																	939,469						257,382
						Total Increase (Decrease) in Net Assets											1,009,805						109,577

Net Assets
Beginning of period																	4,817,865						4,708,288
End of period (including undistributed net investment income as set forth below)															$		5,827,670				$		4,817,865
Undistributed (overdistributed) net investment income (loss)															$				23,900		$		4,902
		Class A		Class C		Class J	Class P		Institutional		R-1		R-2		R-3				R-4		R-5
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	475,347		$ 173,69	5 $	14,119	$ 821,293		$ 1,295,88	8 $	669	$	473	$	926			$	1,765	$	1,163
Reinvested		37,931		26,703		2,686	48,835		67,652		81		75		196				76		220
Redeemed		(354,083	)	(124,635	)	(10,649)	(662,446)		(872,625	)	(535	)	(890	)	(1,597	)			(1,986	)	(878	)
Net Increase (Decrease)	$	159,195	$	75,763	$	6,156	$ 207,682	$	490,915	$	215	$	(342)	$	(475)			$	(145	) $	505
Shares:
Sold		46,776		17,121		1,417	81,437		128,129		67		47		92				175		115
Reinvested		3,737		2,634		271	4,843		6,701		8		8		20				8		22
Redeemed		(34,858	)	(12,283	)	(1,075)	(65,989)		(86,387	)	(53	)	(88	)	(159	)			(199	)	(87	)
Net Increase (Decrease)		15,655		7,472		613	20,291		48,443		22		(33	)	(47	)			(16	)	50
Year Ended August 31, 2015
Dollars:
Sold	$	340,004	$	93,132	$	13,048	$ 880,203		$ 1,019,963	$	682	$	870	$	1,263			$	1,874	$	2,807
Reinvested		46,336		31,325		2,786	46,933		77,941		93		85		259				108		248
Redeemed		(497,001	)	(134,618	)	(10,586)	(504,449)		(1,148,639)		(1,151	)	(203	)	(1,714	)			(1,595	)	(2,622	)
Net Increase (Decrease)	$	(110,661) $		$ (10,161)		5,248	$ 422,687	$	(50,735	) $	(376	) $	752	$	(192)			$	387	$	433
Shares:
Sold		32,612		8,966		1,283	85,020		98,395		66		85		123				182		273
Reinvested		4,476		3,031		275	4,564		7,567		9		8		25				11		24
Redeemed		(47,650	)	(12,948	)	(1,040)	(48,878)		(110,633	)	(112	)	(20	)	(167	)			(157	)	(256	)
Net Increase (Decrease)		(10,562	)	(951	)	518	40,706		(4,671	)	(37	)	73		(19	)			36		41

Distributions:
Year Ended August 31, 2016
From net investment income		$ (37,554)		$ (31,583) $		(2,287)	$ (67,845)		$ (106,888) $		(69	) $	(69)	$	(164)			$	(65)	$	(186)
From net realized gain on
investments		(6,571	)	(6,863	)	(421)	(11,569	)	(17,224	)	(14	)	(13	)	(33	)			(11	)	(34	)
Total Dividends and Distributions		$ (44,125)		$ (38,446) $		(2,708)	$ (79,414)		$ (124,112) $		(83	) $	(82)	$	(197)			$	(76)	$	(220)
Year Ended August 31, 2015
From net investment income		$ (39,030)		$ (32,829) $		(2,087)	$ (63,214)		$ (106,028) $		(67	) $	(64)	$	(187)			$	(83)	$	(186)
From net realized gain on
investments		(14,424	)	(13,694	)	(723)	(20,040	)	(34,826	)	(26	)	(24	)	(72	)			(25	)	(62	)
Total Dividends and Distributions		$ (53,454)		$ (46,523) $		(2,810)	$ (83,254)		$ (140,854) $		(93	) $	(88)	$	(259)			$	(108)	$	(248)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in dollars										Real Estate Allocation Fund
										Year Ended		Period Ended
										August 31, 2016		August 31, 2015^(a)
Operations
Net investment income (loss)									$	12,735		$	2,941
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements										4,544			(12	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies										46,748			(18,424	)
							Net Increase (Decrease) in Net Assets Resulting from Operations			64,027			(15,495	)

Dividends and Distributions to Shareholders
From net investment income										(12,382	)		(1,552	)
From net realized gain on investments										(56	)		–
							Total Dividends and Distributions			(12,438	)		(1,552	)

Capital Share Transactions
Net increase (decrease) in capital share transactions										546,289			337,431
							Total Increase (Decrease) in Net Assets			597,878			320,384

Net Assets
Beginning of period										320,384			–
End of period (including undistributed net investment income as set forth below)									$	918,262		$	320,384
Undistributed (overdistributed) net investment income (loss)									$	1,742		$	1,453
		Class A			Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	429,545			$		186,306
Reinvested			11,434				1,004
Redeemed		(64,022		)			(17,978	)
Net Increase (Decrease)	$	376,957			$		169,332
Shares:
Sold			43,511				18,712
Reinvested			1,161				99
Redeemed			(6,450	)			(1,747	)
Net Increase (Decrease)			38,222				17,064

Period Ended August 31, 2015^(a)
Dollars:
Sold	$	339,860			$		10,000
Reinvested			1,479				73
Redeemed		(13,981		)			–
Net Increase (Decrease)	$	327,358			$		10,073
Shares:
Sold			33,529				1,000
Reinvested			148				7
Redeemed			(1,386	)			–
Net Increase (Decrease)			32,291				1,007

Distributions:
Year Ended August 31, 2016
From net investment income$			(11,379) $				(1,003	)
From net realized gain on
investments			(55	)			(1	)
Total Dividends and Distributions$			(11,434) $				(1,004	)

Period Ended August 31, 2015^(a)
From net investment income$			(1,479)			$	(73	)
From net realized gain on
investments			–				–
Total Dividends and Distributions$			(1,479)			$	(73	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands										Real Estate Debt Income Fund
										Year Ended		Period Ended
										August 31, 2016		August 31, 2015^(a)
Operations
Net investment income (loss)									$	2,396		$	926
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements										4			(1	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies										2,979			(932	)
					Net Increase (Decrease) in Net Assets Resulting from Operations					5,379			(7	)

Dividends and Distributions to Shareholders
From net investment income										(2,379	)		(937	)
							Total Dividends and Distributions			(2,379	)		(937	)

Capital Share Transactions
Net increase (decrease) in capital share transactions										107,225			45,502
							Total Increase (Decrease) in Net Assets			110,225			44,558

Net Assets
Beginning of period										44,558			–
End of period (including undistributed net investment income as set forth below)									$	154,783		$	44,558
Undistributed (overdistributed) net investment income (loss)									$	33		$	(1	)
			Class A		Class P		Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold		$	907	$	484		$ 149,596
Reinvested			11		7		1,324
Redeemed			(21,924	)	(469	)	(22,711	)
Net Increase (Decrease)	$	(21,006		) $	22	$	128,209
Shares:
Sold			94		50		15,509
Reinvested			1		1		135
Redeemed			(2,275	)	(49	)	(2,354	)
Net Increase (Decrease)			(2,180	)	2		13,290

Period Ended August 31, 2015^(a),(b)
Dollars:
Sold		$	22,658	$	113	$	22,857
Reinvested			1		1		6
Redeemed			(114	)	–		(20	)
Net Increase (Decrease)		$	22,545	$	114	$	22,843
Shares:
Sold			2,275		12		2,294
Reinvested			–		–		1
Redeemed			(12	)	–		(2	)
Net Increase (Decrease)			2,263		12		2,293

Distributions:
Year Ended August 31, 2016
From net investment income $			(509	) $	(7	) $	(1,863	)
From net realized gain on
investments			–		–		–
Total Dividends and Distributions $			(509	) $	(7	) $	(1,863	)

Period Ended August 31, 2015^(a),(b)
From net investment income $			(447	) $	(1	) $	(489	)
From net realized gain on
investments			–		–		–
Total Dividends and Distributions $			(447	) $	(1	) $	(489	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands									Small-MidCap Dividend Income Fund
									Year Ended			Year Ended
									August 31, 2016		August 31, 2015
Operations
Net investment income (loss)								$	50,353		$	47,582
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements									(30,785	)		45,159
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies									368,558			(219,893	)
				Net Increase (Decrease) in Net Assets Resulting from Operations					388,126			(127,152	)

Dividends and Distributions to Shareholders
From net investment income									(44,005	)		(37,522	)
From net realized gain on investments									(33,793	)		(35,479	)
						Total Dividends and Distributions			(77,798	)		(73,001	)

Capital Share Transactions
Net increase (decrease) in capital share transactions									261,732			596,664
						Total Increase (Decrease) in Net Assets			572,060			396,511

Net Assets
Beginning of period									1,719,140			1,322,629
End of period (including undistributed net investment income as set forth below)								$	2,291,200		$	1,719,140
Undistributed (overdistributed) net investment income (loss)								$	44,586		$	25,863
		Class A		Class C	Class P	Institutional
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	73,239	$	38,847	$ 304,443	$243,297
Reinvested		6,089		4,141	23,657	40,737
Redeemed		(67,249	)	(33,902)	(218,874)	(152,693	)
Net Increase (Decrease)	$	12,079	$	9,086	$ 109,226	$131,341
Shares:
Sold		5,304		2,882	22,025	17,861
Reinvested		477		328	1,824	3,168
Redeemed		(5,097	)	(2,631)	(16,658)	(11,405	)
Net Increase (Decrease)		684		579	7,191	9,624
Year Ended August 31, 2015
Dollars:
Sold	$	84,482	$	67,856	$ 324,713	$447,792
Reinvested		6,909		3,627	23,766	34,344
Redeemed		(77,993	)	(22,421)	(205,921)	(90,490	)
Net Increase (Decrease)	$	13,398	$	49,062	$ 142,558	$391,646
Shares:
Sold		6,099		4,924	23,172	32,084
Reinvested		507		268	1,720	2,507
Redeemed		(5,663	)	(1,650)	(14,775)	(6,610	)
Net Increase (Decrease)		943		3,542	10,117	27,981

Distributions:
Year Ended August 31, 2016
From net investment income $		(3,698	) $	(2,062)	$(14,473)	$(23,772	)
From net realized gain on
investments		(3,134	)	(2,665)	(10,927)	(17,067	)
Total Dividends and Distributions $		(6,832	) $	(4,727)	$(25,400)	$(40,839	)
Year Ended August 31, 2015
From net investment income $		(3,795	) $	(1,706)	$(13,745)	$(18,276	)
From net realized gain on
investments		(4,107	)	(2,536)	(12,056)	(16,780	)
Total Dividends and Distributions $		(7,902	) $	(4,242)	$(25,801)	$(35,056	)

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 Blue Chip Fund, Credit Opportunities Explorer Fund, Diversified Real Asset Fund, Dynamic High Yield Explorer Fund, Global Multi-Strategy Fund, Global Opportunities Equity Hedged Fund, Global Opportunities Fund, International Small Company Fund, Multi-Manager Equity Long/Short Fund, Opportunistic Municipal Fund, Origin Emerging Markets Fund, Preferred Securities Fund, Real Estate Allocation Fund, Real Estate Debt Income Fund and Small-MidCap Dividend Income 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 September 10, 2014, the initial purchases of $10,000,000 of Class A and Institutional shares of Credit Opportunities Explorer Fund were made by Principal Financial Services, Inc.

Effective September 10, 2014, the initial purchases of $7,500,000 of Class A and Institutional shares of Dynamic High Yield Explorer Fund were made by Principal Financial Services, Inc.

Effective December 31, 2014, the initial purchase of $10,000 of R-6 shares of Diversified Real Asset Fund was made by Principal Management Corporation (the “Manager”).

Effective December 31, 2014, the initial purchase of $10,000 of Institutional shares of International Small Company Fund was made by the Manager.

Effective December 31, 2014, the initial purchases of $10,000 of Class A and Institutional shares of Real Estate Allocation Fund were made by the Manager.

Effective December 31, 2014, the initial purchases of $10,000,000 of Class A and Institutional shares of Real Estate Debt Income Fund were made by Principal Financial Services, Inc. On February 6, 2015, February 13, 2015, and February 20, 2015, additional purchases totaling $12,500,000 of Class A and Institutional shares were made by Principal Financial Services, Inc.

Effective January 23, 2015, the initial purchases of $4,000,000, $3,000,000 and $3,000,000 of Class A, Institutional and R-6 shares, respectively, of Origin Emerging Markets Fund were made by Principal Financial Services, Inc.

Effective March 10, 2015, the initial purchase of $10,000 of Institutional Class of Opportunistic Municipal Fund was made by the Manager.

Effective June 15, 2015, the initial purchase of $10,000 of Class P shares of Real Estate Debt Income Fund was made by the Manager.

Effective September 22, 2015, the initial purchases of $2,500,000 of Class A shares, Class P shares and Institutional shares of Global Opportunities Equity Hedged Fund were made by Principal Financial Services, Inc.

Effective March 29, 2016, the initial purchases of $10,000 of R-3, R-4 and R-5 shares of Blue Chip Fund and Diversified Real Asset Fund were made by the Manager.

Effective March 29, 2016, the initial purchase of $10,000 of Class P shares of Origin Emerging Markets Fund was made by the Manager.

Effective March 31, 2016, the initial purchases of $10,000 of Class A, Class P, Institutional and R-6 shares of Multi-Manager Equity Long/Short Fund were made by the Manager.

All classes of shares for each of the Funds represent interests in the same portfolio of investments, and will vote together as a single class except where otherwise required by law or as determined by the Fund’s Board of Directors. In addition, the 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 Fund:

Security Valuation. Real Estate Allocation Fund invests 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.

The Funds (with the exception of Real Estate Allocation Fund) value securities for which market quotations are readily available at fair value, which is determined using the last reported sale price. If no sales are reported, as is regularly the case for some securities traded over-the-counter, securities are valued using the last reported bid price or an evaluated bid price provided by a pricing service. Pricing services use modeling techniques that incorporate security characteristics such as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, other yield and risk factors, and other market conditions to determine an evaluated bid price or, in the case of certain credit default swaps, a mean price provided by a pricing service. 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, provided by independent pricing services, are reviewed in the course of making a good faith determination of a security’s fair value, including, but not limited to, price movements in 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.

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 primary market is considered the date on which the loan allocations are determined. Trade date for senior floating rate interests purchased in the secondary market is the date on which the transaction is entered into. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. The Funds record dividend income on the ex-dividend date, except dividend income from foreign securities whereby the ex-dividend date has passed; such dividends are recorded as soon as the Funds are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method 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 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 of each class. Expenses specifically attributable to a particular class are charged directly to such class and are included separately in the statements of operations.

In addition to the expenses that the Real Estate Allocation Fund bears directly, the Real Estate Allocation Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Expenses included in the statement of operations of Real Estate Allocation Fund reflect the expenses of Real Estate Allocation Fund and do not include any expenses associated with the Underlying Funds.

Distributions to Shareholders. With respect to Opportunistic Municipal 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, options and futures contracts, certain defaulted securities, sales of Passive Foreign Investment Companies, losses deferred due to wash sales, tax straddles, mortgage-backed securities, certain preferred securities, swap agreements, short sales, partnership investments, REITs, utilization of earnings and profits distributed to shareholders on redemption of shares, and limitations imposed by Sections 381-384 of the Internal Revenue Code. Permanent book and tax basis differences are reclassified within the capital accounts based on federal tax-basis treatment; temporary differences do not require reclassification. To the extent dividends and distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as return of capital distributions.

Federal Income Taxes. No provision for federal income taxes is considered necessary because each of the Funds intends to qualify as a “regulated investment company” under the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders.

Management evaluates tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more likely than not” that each tax position would be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the current year. During the year ended August 31, 2016, the Funds did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the, shorter of the fiscal years from 2013-2015 or commencement of the fund’s operations to 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, certain of 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 recorded when both the amount is known and there are no significant uncertainties regarding collectability.

Basis for Consolidation. The Diversified Real Asset Fund (the “Consolidated Fund”) may invest up to 25% of its total assets in its wholly-owned subsidiary DRA Cayman Corporation (a “Cayman Subsidiary”) organized under the laws of the Cayman Islands. Diversified Real Asset Fund is the sole shareholder of the Cayman Subsidiary, and shares of the Cayman Subsidiary will not be sold or offered to other investors. To the extent that Diversified Real Asset Fund invests in its Cayman Subsidiary, it will be subject to the particular risks associated with the Cayman Subsidiary’s investments, which are discussed in the applicable Prospectus and SAI. The principal purpose of investing in the Cayman Subsidiary is to allow Diversified Real Asset Fund to gain exposure to the commodity markets within the limitations of federal tax laws applicable to regulated investment companies. Diversified Real Asset Fund’s investment portfolio has been consolidated and includes the portfolio holdings of Diversified Real Asset Fund and its Cayman Subsidiary. The consolidated financial statements include the accounts of Diversified Real Asset Fund and its Cayman Subsidiary. All intercompany transactions and balances have been eliminated in consolidation. At August 31, 2016, the net assets of the Cayman Subsidiary were $347,869,000 or 9.4% of the Consolidated Fund’s net assets.

Recent Accounting Pronouncements. In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-15 Presentation of Financial Statements – Going Concern requiring management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. The ASU is effective prospectively for annual periods ending after December 15, 2016, and interim periods thereafter. At this time, management is evaluating the implications of these changes on the financial statements.

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%). Blue Chip Fund, Credit Opportunities Explorer Fund, Diversified Real Asset Fund, Global Multi-Strategy Fund, Global Opportunities Fund, International Small Company Fund, Origin Emerging Markets Fund, Preferred Securities Fund, Real Estate Debt Income Fund, and Small-MidCap Dividend Income Fund each loaned to the Facility. The interest income received is included in interest income on the statements of operations.

During the period ended August 31, 2016, funds borrowing from the Facility were as follows (amounts in thousands):

The interest expense associated with these borrowings is included in other expenses 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 .15% on the amount of the line of credit. During the year ended August 31, 2016, Origin Emerging Markets Fund borrowed against the line of credit. The average outstanding balance for the liability during the year ended August 31, 2016 was $9,000 at a weighted average interest rate of 1.86%. The interest expense associated with those borrowings is included in other expenses on the statements of operations.

Commodity Linked Notes. Diversified Real Asset Fund invests in structured notes whose market values are primarily derived from changes in the value of various commodity 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 the fair 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.

Credit Opportunities Explorer Fund, Diversified Real Asset Fund, Global Multi-Strategy Fund and Multi-Manager Equity Long/Short Fund have financial instruments that are subject to Master Netting Agreements or similar agreements.

As of August 31, 2016, financial assets and liabilities subject to Master Netting Agreements or similar agreements were as follows (amounts in thousands):


Fund: Credit Opportunities Explorer Fund
Financial Derivative Instruments: Over the Counter Summary

								Counterparty
								Barclays Bank PLC
Assets*
Total Return Swaps										$	4
Total OTC										$	4

Liabilities*
Total Return Swaps										$	—
Total OTC										$	—

Net Market Value of OTC Derivatives										$	4
Collateral (Received)/Pledged											—
Net Exposure										$	4

Fund: Diversified Real Asset Fund
Financial Derivative Instruments: Over the Counter Summary


																				Counterparty
		BOA			BARC			BNP			CITI			CS			DB			GOLD			HSBC			JPM			MS			RBC			RBS		SCB		UBS		Total
Assets*
Foreign Currency
Contracts	$	—		$	608		$	—		$	—		$	—		$	503		$	—		$	73		$	3,689		$	14		$	—		$	9	$	—	$	44	$	4,940
Interest Rate Swaps		—			126			—			—			—			133			—			—			—			—			—			—		—		—		259
Purchased Interest
Rate Swaptions		—			223			—			—			—			955			—			—			—			—			—			—		—		—		1,178
Purchased Options		—			860			62			—			—			99			—			—			534			—			—			—		—		77		1,632
Total OTC	$	—		$	1,817		$	62		$	—		$	—		$	1,690		$	—		$	73		$	4,223		$	14		$	—		$	9	$	—	$	121	$	8,009

Liabilities*
Foreign Currency
Contracts	$	(77	)	$	(705	)	$	—		$	(5	)	$	(39	)	$	(576	)	$	(5	)	$	(15	)	$	(4,513	)	$	(155	)	$	(14	)	$	(42)		$(175)	$	—	$	(6,321	)
Written Interest Rate
Swaptions		—			(19	)		—			—			—			(219	)		—			—			—			—			—			—		—		—		(238	)
Written Options		—			(651	)		(33	)		—			—			—			—			—			—			—			—			—		—		—		(684	)
Total OTC	$	(77	)	$	(1,375	)	$	(33	)	$	(5	)	$	(39	)	$	(795	)	$	(5	)	$	(15	)	$	(4,513	)	$	(155	)	$	(14	)	$	(42)		$(175)	$	—	$	(7,243	)

Net Market Value of
OTC Derivatives	$	(77	)	$	442		$	29		$	(5	)	$	(39	)	$	895		$	(5	)	$	58		$	(290	)	$	(141	)	$	(14	)	$	(33)		$(175)	$	121	$	766
Collateral
(Received)/Pledged		—			—			—			—			—			(693	)^		—			—			250	**		—			—			—		—		—		(443	)^
Net Exposure	$	(77	)	$	442		$	29		$	(5	)	$	(39	)	$	202		$	(5	)	$	58		$	(40	)	$	(141	)	$	(14	)	$	(33)		$(175)	$	121	$	323


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016


3. Operating Policies (Continued)

Fund: Global Multi-Strategy Fund
Financial Derivative Instruments: Over the Counter Summary

																	Counterparty
		BOA			BARC			BNYM			CITI			CBA			CS			DB			HSBC			JPM			ML			MS			SCB			SN		Total
Assets*
Credit Default Swaps	$	—		$	1,177		$	—		$	1,342		$	—		$	26		$	505		$	531		$	—		$	—		$	10		$	—		$	—	$	3,591
Equity Basket Swaps		50			—			—			—			—			—			1,636			—			—			—			6,044			—			—		7,730
Foreign Currency
Contracts		12,023			1,192			1,748			7,550			496			50			66			70			107			253			325			—			206		24,086
Interest Rate Swaps		34			162			—			—			—			—			7			—			48			9			—			—			—		260
Purchased Interest
Rate Swaptions		29			91			—			—			—			—			82			—			—			—			—			—			—		202
Purchased Options		—			228			—			—			—			—			—			—			—			109			—			—			—		337
Synthetic Futures		458			—			—			—			—			—			—			—			—			—			104			—			—		562
Total Return Swaps		—			—			—			—			—			—			—			—			—			—			24			—			—		24
Total OTC	$	12,594		$	2,850		$	1,748		$	8,892		$	496		$	76		$	2,296		$	601		$	155		$	371		$	6,507		$	—		$	206	$	36,792

Liabilities*
Credit Default Swaps	$	—		$	(1,599	)	$	—		$	—		$	—		$	(128	)	$	—			$(794)		$	—		$	—		$	—		$	—		$	—	$	(2,521	)
Equity Basket Swaps		—			—			—			—			—			—			(292	)		—			—			—			(726	)		—			—		(1,018	)
Foreign Currency
Contracts		(11,334	)		(959	)		(1,040	)		(4,167	)		(60	)		—			—			—			(2,651	)		(198	)		(708	)		(100	)		—		(21,217	)
Interest Rate Swaps		(40	)		(6	)		—			—			—			—			(13	)		—			—			(12	)		—			—			—		(71	)
Synthetic Futures		(65	)		—			—			—			—			—			—			—			—			—			(96	)		—			—		(161	)
Total Return Swaps		—			—			—			—			—			—			—			—			—			—			(45	)		—			—		(45	)
Written Interest Rate
Swaptions		(4	)		(33	)		—			—			—			—			—			—			—			—			—			—			—		(37	)
Written Options		—			(270	)		—			—			—			—			—			—			—			—			—			—			—		(270	)
Total OTC	$	(11,443	)	$	(2,867)			$(1,040)			$(4,167)		$	(60	)	$	(128	)	$	(305)			$(794)			$(2,651)			$(210)		$	(1,575	)	$	(100	)	$	—	$	(25,340	)

Net Market Value of
OTC Derivatives	$	1,151		$	(17	)	$	708		$	4,725		$	436		$	(52	)	$	1,991			$(193)			$(2,496)		$	161		$	4,932		$	(100	)	$	206	$	11,452
Collateral
(Received)/Pledged		—			17	**		—			(1,410)^			—			—			(50)^			193	**		—			—			—			—			—		(1,250	)^
Net Exposure	$	1,151		$	—		$	708		$	3,315		$	436		$	(52	)	$	1,941		$	—			$(2,496)		$	161		$	4,932		$	(100	)	$	206	$	10,202


Fund: Multi-Manager Equity Long/Short Fund
Financial Derivative Instruments: Over the Counter Summary

Counterparty

					Goldman Sachs									Morgan Stanley									Total
Assets*
Equity Basket Swaps							$	225								$	274					$	499
Foreign Currency Contracts								93									168									261
Total OTC							$	318								$	442					$	760

Liabilities*
Equity Basket Swaps							$	(6	)							$	(78	)				$	(84				)
Foreign Currency Contracts								(47	)								(128	)					(175				)
Total OTC							$	(53	)					$(206				)				$	(259				)

Net Market Value of OTC Derivatives							$	265								$	236					$	501
Collateral (Received)/Pledged								—									—									—
Net Exposure							$	265								$	236					$	501

**The fund has pledged securities or cash to the counterparty as collateral which may be in excess of the amount owed to the counterparty.

^ The counterparty has pledged cash or securities to the fund as collateral in a segregated account which is not included in the assets of the fund.

Collateral information relating to securities on loan is included in the securities lending note to financial statements.

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. Opportunistic Municipal Fund has 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 balance of the floating rate notes issued as of August 31, 2016 was $5,565,000. The average outstanding balance for the liability during the year ended August 31, 2016 was $4,411,000 at a weighted average interest rate of 1.05%. 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 Funds’ investment objectives. 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 and sell foreign currencies at a specified future date at a fixed exchange rate. Forward foreign currency contracts are valued at the forward rate, and are marked-to-market daily. The change in fair value is recorded by the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of forward foreign currency contracts does not eliminate the fluctuations in underlying prices of the Funds’ portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the currency changes unfavorably to the U.S. dollar.

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 Real Estate Allocation 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. Future contracts are marked to market daily at the closing settlement price or in the absence of such a price, the most recent quoted bid price. If there are no quotations available, the security is valued at the last available closing settlement price. During the period the futures contracts are open, daily changes in the fair value of the contracts are recognized as unrealized gains or losses. These unrealized gains or losses are included as a component of 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 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.

Options Contracts. During the period Global Multi-Strategy Fund, Diversified Real Asset Fund, Multi-Manager Equity Long/Short Fund, and Preferred Securities Fund wrote call and put options on swaps, securities, indices and currencies they own or in which they may invest 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, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as options contracts written on the statements of assets and liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying 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 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 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 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 August 31, 2016, 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 the counterparties’ custodian takes possession of the underlying collateral securities. The fair value of the collateral is at all times at least equal to the total amount of the repurchase obligation. In the event of default on the obligation to repurchase, the Funds have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event the seller of a repurchase agreement defaults, the Funds could experience delays in the realization of the collateral.

In addition, Global Multi-Strategy Fund may enter into repurchase agreements with certain counterparties that are collateralized by assets other than U.S. government or U.S. government agency securities. The collateral pledged by the counterparty under these repurchase agreements is maintained in a segregated account at the counterparty’s custodian. After entering into the repurchase agreement, the fund may sell short the security pledged by the counterparty as collateral in anticipation of a decline in market value. Upon the settlement of the short sale, the fund will unwind the repurchase agreement.

Although the repurchase agreements are typically open-ended through the maturity date of the collateral, the fund has a right to terminate the repurchase agreement at any time with two days’ notice. During periods of high demand for the collateral security, the fund may also pay the counterparty a fee and the amount is recorded as interest expense on the statement of operations.

Global Master Repurchase Agreements govern the repurchase and reverse repurchase transactions between the fund and the counterparty. Collateral requirements for certain counterparties may be determined on a total exposure basis, rather than on an individual repurchase agreement or reverse repurchase agreement basis in order to determine the collateral to be received or pledged.

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.

Reverse Repurchase Agreements. Global Multi-Strategy Fund has entered into reverse repurchase agreements. Under a reverse repurchase agreement, a fund sells securities and agrees to repurchase them at a specified date and price. Reverse repurchase agreements are considered to be borrowings by the fund, and are subject to the fund’s restrictions on borrowing. Reverse repurchase agreements may increase the volatility of a fund and involve the risk that interest costs on money borrowed may exceed the return on securities purchased with the borrowed money. While a reverse repurchase agreement is outstanding, the Fund will maintain cash or appropriate liquid assets to cover its obligation under the agreement. The Fund will enter into reverse repurchase agreements only with parties that the Sub-Advisor deems creditworthy. The fund must segregate assets in an amount equal to the amount the fund owes pursuant to the terms of the reverse repurchase agreements. Reverse repurchase agreements are shown as a separate line item on the statements of assets and liabilities. Interest payments made are shown as reverse repurchase agreement interest expense on the statements of operations. The average amount of borrowings outstanding during the year ended August 31, 2016 was $156,897,881 at a weighted average interest rate of 0.51%. The following table shows a breakdown of the obligations owed by fund, security type sold and remaining maturity for the reverse repurchase agreements.

Securities Lending. To earn additional income, certain of the Funds may lend portfolio securities to approved brokerage firms. The Funds receive collateral, in the form of cash, against the loaned securities. During the period of the loan, the borrower must maintain collateral in an amount not less than 102% of the market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The cash collateral received is usually invested in an SEC-registered money market mutual fund and the Funds could realize a loss on such investments. Further, the Funds could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium received for lending certain types of securities. Security lending income is shown in each fund’s statement of operations. As of August 31, 2016, the Funds had no securities on loan.

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).

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 unrealized gain or loss on unfunded loan commitments on the statements of assets and liabilities. As of August 31, 2016, the unfunded loan commitments were as follows (amounts in thousands):

Short Sales. Global Multi-Strategy Fund and Multi-Manager Equity Long/Short 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. Credit Opportunities Explorer Fund, Diversified Real Asset Fund, Global Multi-Strategy Fund, and Multi-Manager Equity Long/Short 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 swaps 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.

Credit default swap agreements on corporate issues or sovereign issues 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 default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). The Funds may use credit default swaps on corporate issues or sovereign issues of an emerging country to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Funds own or has exposure to the referenced obligation).

For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of August 31, 2016 for which a Fund is the seller of protection are disclosed in the footnotes to the schedules of investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.

Synthetic futures, which are total return swaps on futures contracts, along with equity basket swaps generally involve the commitment to receive positive returns or pay negative returns on a specified reference security, basket of securities, security index or index component, without actually owning the underlying position.

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 August 31, 2016, counterparties had pledged collateral for swap agreements of $620,000 and $2,118,497 for the Diversified Real Asset Fund and Global Multi-Strategy Fund, respectively. 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. The performance and risks of Real Estate Allocation Fund, (singly, “a fund 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 fund 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, Principal LifeTime Hybrid Funds, PVC Principal LifeTime Accounts, 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, Real Estate Allocation Fund, and each of the underlying funds. Principal Global Investors, LLC ("PGI") is Sub-Advisor to the Principal LifeTime Funds, Principal LifeTime Hybrid 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, and PVC Diversified Income Account. Principal Real Estate Investors, LLC, (“Principal-REI”) is 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. Either 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 August 31, 2016, the SAM Portfolios, Principal LifeTime Funds, Principal LifeTime Hybrid Funds, 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, PVC Multi-Asset Income Account, and Real Estate Allocation Fund 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 in thousands):



Derivatives not accounted for	Asset Derivatives August 31, 2016		Fair	Liability Derivatives August 31, 2016		Fair
as hedging instruments	Statement of Assets and Liabilities Location		Value	Statement of Assets and Liabilities Location		Value
Credit Opportunities Explorer Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	53	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	4	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	11^*	Payables, Net Assets Consist of Net unrealized	$	2	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	15		$	55
Diversified Real Asset Fund
Commodity contracts	Receivables, Net Assets Consist of Net unrealized	$ 10,792^*		Payables, Net Assets Consist of Net unrealized	$	10,918	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	6,572	Payables	$	7,005
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	2,072^*	Payables, Net Assets Consist of Net unrealized	$	950	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	19,436		$	18,873
Global Multi-Strategy Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	3,596^*	Payables, Net Assets Consist of Net unrealized	$	2,643	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$ 16,425		Payables, Net Assets Consist of Net unrealized	$	17,834
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$ 24,423		Payables	$	21,487
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	5,075^*	Payables, Net Assets Consist of Net unrealized	$	3,374	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	49,519		$	45,338
Global Opportunities Equity Hedged Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	321	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Multi-Manager Equity Long/Short Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	728^*	Payables, Net Assets Consist of Net unrealized	$	1,066	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	261	Payables	$	175
		Total$	989		$	1,241
Origin Emerging Markets Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	139	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Preferred Securities Fund
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	7,169	Payables, Net Assets Consist of Net unrealized	$	2,034
	appreciation (depreciation) of investments			appreciation (depreciation) of investments

*Includes cumulative unrealized appreciation/depreciation of futures, and certain synthetic 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.


	NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016


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
Diversified Real Asset Fund
Commodity contracts	Net realized gain (loss) from Futures	$	9,054		$	(126	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
Foreign exchange contracts	Net realized gain (loss) from Investment	$	(16,329	)	$	(3,656	)
	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	$	(5,893	)	$	980
	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	$	(13,168	)	$	(2,802	)
Global Multi-Strategy Fund
Credit contracts	Net realized gain (loss) from Swap	$	1,892		$	(3,103	)
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Equity contracts	Net realized gain (loss) from Investment	$	(4,243	)	$	(36,361	)
	transactions, Futures contracts, Options and
	swaptions, and Swap agreements/Change in
	unrealized appreciation/(depreciation) of
	Investments, Futures contracts, Options and
	swaptions, and Swap agreements
Foreign exchange contracts	Net realized gain (loss) from Investment	$	(1,121	)	$	(8,422	)
	transactions, Foreign currency transactions,
	Futures contracts, 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	$	(2,136	)	$	489
	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	$	(5,608	)	$	(47,397	)
Global Opportunities Equity Hedged Fund
Equity contracts	Net realized gain (loss) from Futures	$	(595	)	$	(321	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
Multi-Manager Equity Long/Short Fund
Equity contracts	Net realized gain (loss) from Investment	$	(441	)	$	(664	)
	transactions, Futures contracts, Options and
	swaptions, and Swap agreements/Change in
	unrealized appreciation/(depreciation) of
	Investments, Futures contracts, and Swap
	agreements
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	582		$	86
	currency transactions /Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
	Total	$	141		$	(578	)
Origin Emerging Markets Fund
Equity contracts	Net realized gain (loss) from Futures	$	(2,662	)	$	2,825
	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 Credit Opportunities Explorer Fund, Diversified Real Asset Fund, and Global Multi-Strategy Fund. The Preferred Securities Fund uses long and short U.S. Treasury futures contracts to mitigate interest rate volatility. The notional values of the futures contracts will vary in accordance with changing duration of these funds.

The following table includes a summary of the average quarterly outstanding volume by derivative instrument type for the year ended August 31, 2016:


	NOTES TO FINANCIAL STATEMENTS
	PRINCIPAL FUNDS, INC.
	August 31, 2016
3. Operating Policies (Continued)

Global Multi-Strategy Fund
Credit Contracts	Credit Default Swaps - Buy Protection	$	110,574,675
	Credit Default Swaps - Sell Protection	$	30,368,686
	Exchange Cleared Credit Default Swaps - Buy Protection	$	6,933,333
	Exchange Cleared Credit Default Swaps - Sell Protection	$	1,791,667
Equity Contracts	Futures – Long	$	146,396,729
	Futures – Short	$	307,584,726
	Purchased Options		10,420
	Synthetic Futures - Long	$	5,856,693
	Synthetic Futures - Short	$	13,254,544
	Total Return Equity Basket Swaps - Long	$	299,099,620
	Total Return Equity Basket Swaps - Short	$	278,140,922
	Total Return Swaps - Pay Floating Rate	$	2,777,649
	Total Return Swaps - Receive Floating Rate	$	36,331
	Written Options		2,706
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	927,362,384
	Foreign Currency Contracts - Contracts to Deliver	$	1,258,155,488
	Futures – Short	$	2,484,923
	Purchased Options		53,313,375
	Written Options		18,531,063
Interest Rate Contracts	Exchange Cleared Interest Rate Swaps - Pay Floating Rate	$	78,984,165
	Exchange Cleared Interest Rate Swaps - Receive Floating Rate	$	61,539,472
	Futures – Long	$	2,011,577,994
	Futures – Short	$	962,539,626
	Interest Rate Swaps - Pay Floating Rate	$	22,475,385
	Interest Rate Swaps - Receive Floating Rate	$	20,940,623
	Purchased Interest Rate Swaptions	$	122,499,424
	Purchased Options		9,970
	Synthetic Futures - Long	$	69,306,820
	Synthetic Futures - Short	$	15,329,008
	Total Return Swaps - Pay Floating Rate	$	23,112,023
	Total Return Swaps - Receive Floating Rate	$	15,553,240
	Written Interest Rate Swaptions	$	74,699,979
	Written Options		3,965
Global Opportunities Equity Hedged Fund
Equity Contracts	Futures – Short	$	5,310,789

Multi-Manager Equity Long/Short Fund
Equity Contracts	Futures – Short	$	27,713,594
	Purchased Options		881
	Total Return Equity Basket Swaps - Long	$	29,345,858
	Total Return Equity Basket Swaps - Short	$	773,125
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	3,758,708
	Foreign Currency Contracts - Contracts to Deliver	$	43,825,516
Origin Emerging Markets Fund
Equity Contracts	Futures – Long	$	32,164,505

Preferred Securities Fund
Equity Contracts	Purchased Options		16,975
	Written Options		16,975
Interest Rate Contracts	Purchased Options		9,331
	Written Options		9,331

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.

The fair values of these entities are dependent on economic, political and other considerations. The values of the investments 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 when determining fair valuation.

The Pricing Group relies on externally provided valuation inputs to determine the value of 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.

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. The table below includes transfers from Level 1 to Level 2 at August 31, 2016 due to lack of exchange traded valuation data:

In addition, $12,026,355 was transferred from Level 1 to Level 2 on the Diversified Real Asset Fund to reflect events that occurred after the close of a certain foreign market or exchange but prior to the calculation of the Fund’s net asset value.

Below are transfers from Level 2 to Level 1 at August 31, 2016 due to the resumption of trading for previous thinly traded securities:

The following is a summary of the inputs used as of August 31, 2016 in valuing the Funds' securities carried at value (amounts shown in thousands):


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016


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 Real Asset Fund	$	—		$	297,912		$	—	$	297,912
Commodity Indexed Structured Notes*		—			37,676			—		37,676
Common Stocks
Basic Materials		125,908			99,606			—		225,514
Communications		1,353			7,356			—		8,709
Consumer, Cyclical		32,240			8,745			—		40,985
Consumer, Non-cyclical		51,818			90,734			—		142,552
Diversified		—			11,936			—		11,936
Energy		529,260			11,535			—		540,795
Financial		325,298			168,551			—		493,849
Industrial		94,582			88,617			—		183,199
Utilities		100,701			67,472			—		168,173
Convertible Bonds*		—			123			—		123
Investment Companies*		314,430			—			—		314,430
Senior Floating Rate Interests*		—			592,133			—		592,133
U.S. Government & Government Agency Obligations*		—			696,239			—		696,239
Purchased Interest Rate Swaptions		—			1,178			—		1,178
Purchased Capped Options		—			—			—		—
Purchased Options		277			1,632			—		1,909
Total investments in securities $		1,575,867		$	2,181,445		$	—	$	3,757,312
Assets
Commodity Contracts**
Futures	$	10,792		$	—		$	—	$	10,792
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	4,940		$	—	$	4,940
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—		$	84		$	—	$	84
Futures		274			—			—		274
Interest Rate Swaps		—			259			—		259
Liabilities
Commodity Contracts**
Futures	$	(10,918	)	$	—		$	—	$	(10,918	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(6,321	)	$	—	$	(6,321	)
Written Options		—			(684	)		—		(684	)
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—		$	(41	)	$	—	$	(41	)
Futures		(484	)		—			—		(484	)
Interest Rate Swaptions		—			(238	)		—		(238	)
Options		(187	)		—			—		(187	)

Dynamic High Yield Explorer Fund
Bonds*	$	—		$	3,110		$	—	$	3,110
Common Stocks*		17			—			—		17
Investment Companies*		2,379			—			—		2,379
Senior Floating Rate Interests*		—			10,126			—		10,126
Total investments in securities $		2,396		$	13,236		$	—	$	15,632


Global Multi-Strategy Fund
Bonds*	$	—		$	723,648		$	12,150	$	735,798
Common Stocks
Basic Materials		39,591			23,578			—		63,169
Communications		97,360			10,913			—		108,273
Consumer, Cyclical		106,899			23,257			19		130,175
Consumer, Non-cyclical		232,250			25,959			—		258,209
Diversified		1,875			—			—		1,875
Energy		44,364			2,112			—		46,476
Financial		141,903			25,627			2,814		170,344
Industrial		99,318			38,109			—		137,427
Technology		113,948			9,330			—		123,278
Utilities		22,450			3,122			—		25,572
Convertible Bonds*		—			60,474			—		60,474
Convertible Preferred Stocks
Communications		2,600			—			267		2,867
Consumer, Cyclical		—			498			41		539
Consumer, Non-cyclical		7,591			116			—		7,707
Financial		4,438			2,248			—		6,686
Industrial		208			—			—		208
Technology		—			—			64		64
Utilities		949			—			—		949
Investment Companies*		596,359			477			—		596,836


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016


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)

Global Multi-Strategy Fund (Continued)
Preferred Stocks
Communications	$	—		$	107		$	2,045		$	2,152
Financial		—			—			785			785
Industrial		—			—			149			149
Technology		—			—			315			315
Repurchase Agreements*		—			382,601			—			382,601
Senior Floating Rate Interests*		—			73,832			—			73,832
U.S. Government & Government Agency Obligations*		—			297,880			—			297,880
Purchased Interest Rate Swaptions		—			202			—			202
Purchased Options		6,383			337			—			6,720
Total investments in securities $		1,518,486		$	1,704,427		$	18,649		$	3,241,562
Short Sales
Bonds	$	—		$	(49,659	)	$	—		$	(49,659	)
Common Stocks
Basic Materials		(7,381	)		(1,593	)		—			(8,974	)
Communications		(19,602	)		(4,019	)		(24	)		(23,645	)
Consumer, Cyclical		(49,851	)		(4,150	)		—			(54,001	)
Consumer, Non-cyclical		(67,976	)		(4,378	)		—			(72,354	)
Energy		(11,846	)		(1,276	)		—			(13,122	)
Financial		(62,218	)		(4,243	)		—			(66,461	)
Industrial		(31,271	)		(4,067	)		—			(35,338	)
Technology		(52,184	)		(1,278	)		—			(53,462	)
Utilities		(13,295	)		(365	)		—			(13,660	)
Preferred Stocks
Basic Materials		—			(321	)		—			(321	)
Consumer, Cyclical		—			(516	)		—			(516	)
Consumer, Non-cyclical		—			(73	)		—			(73	)
Industrial		—			(67	)		—			(67	)
U.S. Government & Government Agency Obligations		—			(329,015	)		—			(329,015	)
Total Short Sales $		(315,624	)	$	(405,020	)	$	(24	)	$	(720,668	)
Assets
Credit Contracts**
Credit Default Swaps	$	—		$	3,591		$	—		$	3,591
Exchange Cleared Credit Default Swaps		—			5			—			5
Equity Contracts**
Futures	$	3,277		$	—		$	—		$	3,277
Synthetic Futures		—			122			—			122
Total Return Equity Basket Swaps		—			7,730			—			7,730
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	24,086		$	—		$	24,086
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—		$	749		$	—		$	749
Futures		2,313			—			—			2,313
Interest Rate Swaps		—			260			—			260
Synthetic Futures		—			440			—			440
Total Return Swaps		—			24			—			24
Liabilities
Credit Contracts**
Credit Default Swaps	$	—		$	(2,521	)	$	—		$	(2,521	)
Exchange Cleared Credit Default Swaps		—			(122	)		—			(122	)
Equity Contracts**
Futures	$	(14,255	)	$	—		$	—		$	(14,255	)
Options		(2,417	)		—			—			(2,417	)
Synthetic Futures		—			(99	)		—			(99	)
Total Return Equity Basket Swaps		—			(1,018	)		—			(1,018	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(21,217	)	$	—		$	(21,217	)
Options		—			(270	)		—			(270	)
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—		$	(943	)	$	—		$	(943	)
Futures		(1,658	)		—			—			(1,658	)
Interest Rate Swaps		—			(71	)		—			(71	)
Interest Rate Swaptions		—			(37	)		—			(37	)
Options		(603	)		—			—			(603	)
Synthetic Futures		—			(62	)		—			(62	)
Total Return Swaps		—			(45	)		—			(45	)


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016


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

Fund
Global Opportunities Equity Hedged Fund
Common Stocks
Basic Materials	$	75		$	50	$	—	$	125
Communications		615			281		—		896
Consumer, Cyclical		131			210		—		341
Consumer, Non-cyclical		1,398			587		—		1,985
Diversified		—			42		—		42
Energy		183			—		—		183
Financial		719			558		—		1,277
Industrial		285			522		—		807
Technology		420			237		—		657
Utilities		107			294		—		401
Investment Companies*		144			—		—		144
	Total investments in securities $	4,077		$	2,781	$	—	$	6,858
Liabilities
Equity Contracts**
Futures	$	(321	)	$	—	$	—	$	(321	)

Global Opportunities Fund
Common Stocks
Basic Materials	$	14,621		$	9,777	$	—	$	24,398
Communications		116,519			54,196		—		170,715
Consumer, Cyclical		27,931			40,117		—		68,048
Consumer, Non-cyclical		272,325			116,354		—		388,679
Diversified		—			8,605		—		8,605
Energy		40,375			—		—		40,375
Financial		136,813			107,010		—		243,823
Industrial		54,709			102,043		—		156,752
Technology		79,157			45,169		—		124,326
Utilities		22,110			59,356		—		81,466
Investment Companies*		6,378			—		—		6,378
	Total investments in securities $	770,938		$	542,627	$	—	$	1,313,565


International Small Company Fund
Common Stocks
Basic Materials	$	3,895		$	10,588	$	—	$	14,483
Communications		1,005			7,532		—		8,537
Consumer, Cyclical		2,216			25,200		—		27,416
Consumer, Non-cyclical		—			28,944		—		28,944
Energy		5,268			2,748		—		8,016
Financial		2,989			33,787		—		36,776
Industrial		2,055			25,079		—		27,134
Technology		2,534			8,537		—		11,071
Utilities		—			3,347		—		3,347
Investment Companies*		2,523			—		—		2,523
Preferred Stocks
Industrial		—			2,459		—		2,459
	Total investments in securities $	22,485		$	148,221	$	—	$	170,706


Multi-Manager Equity Long/Short Fund
Common Stocks
Basic Materials	$	11,060		$	3,954	$	—	$	15,014
Communications		35,208			14,915		—		50,123
Consumer, Cyclical		23,556			5,581		—		29,137
Consumer, Non-cyclical		56,725			11,314		—		68,039
Energy		6,108			821		—		6,929
Financial		27,805			13,838		—		41,643
Industrial		18,226			14,365		—		32,591
Technology		32,498			6,091		—		38,589
Utilities		5,831			—		—		5,831
Investment Companies*		48,975			—		—		48,975
Purchased Options		197			—		—		197
	Total investments in securities $	266,189		$	70,879	$	—	$	337,068


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016



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)

Multi-Manager Equity Long/Short Fund (Continued)
Short Sales
Common Stocks
Basic Materials	$	(3,301	)	$	(1,103	)	$	—	$	(4,404	)
Communications		(4,098	)		—			—		(4,098	)
Consumer, Cyclical		(14,866	)		(2,381	)		—		(17,247	)
Consumer, Non-cyclical		(18,918	)		(2,305	)		—		(21,223	)
Diversified		(77	)		—			—		(77	)
Energy		(8,344	)		(2,505	)		—		(10,849	)
Financial		(6,789	)		(3,772	)		—		(10,561	)
Industrial		(9,295	)		(3,189	)		—		(12,484	)
Technology		(7,745	)		(1,158	)		—		(8,903	)
Utilities		(4,767	)		—			—		(4,767	)
Investment Companies		(16,919	)		(9,291	)		—		(26,210	)
	Total Short Sales $	(95,119	)	$	(25,704	)	$	—	$	(120,823	)

Assets
Equity Contracts**
Futures	$	32		$	—		$	—	$	32
Total Return Equity Basket Swaps		—			499			—		499
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	261		$	—	$	261
Liabilities
Equity Contracts**
Futures	$	(982	)	$	—		$	—	$	(982	)
Total Return Equity Basket Swaps		—			(84	)		—		(84	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(175	)	$	—	$	(175	)

Opportunistic Municipal Fund
Bonds*	$	—		$	515		$	—	$	515
Investment Companies*		1,087			—			—		1,087
Municipal Bonds*		—			142,956			—		142,956
	Total investments in securities $	1,087		$	143,471		$	—	$	144,558

Origin Emerging Markets Fund
Common Stocks
Basic Materials	$	—		$	41,473		$	—	$	41,473
Communications		23,362			103,030			—		126,392
Consumer, Cyclical		16,113			78,573			—		94,686
Consumer, Non-cyclical		36,485			77,990			—		114,475
Diversified		—			15,173			—		15,173
Energy		—			10,606			—		10,606
Financial		8,544			64,161			—		72,705
Industrial		21,817			56,652			—		78,469
Technology		118,610			25,491			—		144,101
Utilities		8,599			42,118			—		50,717
Investment Companies*		28,364			—			—		28,364
	Total investments in securities $	261,894		$	515,267		$	—	$	777,161
Liabilities
Equity Contracts**
Futures	$	(139	)	$	—		$	—	$	(139	)

Preferred Securities Fund
Bonds*	$	—		$	3,742,191		$	—	$	3,742,191
Convertible Bonds*		—			25,464			—		25,464
Convertible Preferred Stocks
Financial		82,478			—			—		82,478
Investment Companies*		167,452			—			—		167,452
Preferred Stocks
Communications		152,618			143,636			—		296,254
Consumer, Non-cyclical		—			25,235			—		25,235
Financial		1,054,074			153,192			—		1,207,266
Government		—			27,614			—		27,614
Industrial		39,077			—			—		39,077
Utilities		115,430			24,038			—		139,468
Purchased Options		7,169			—			—		7,169
	Total investments in securities $	1,618,298		$	4,141,370		$	—	$	5,759,668
Liabilities
Interest Rate Contracts**
Options	$	(2,034	)	$	—		$	—	$	(2,034	)
81


NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
August 31, 2016


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)


Real Estate Allocation Fund
Investment Companies*	$	931	$	—	$	—	$	931
	Total investments in securities $	931	$	—	$	—	$	931

Real Estate Debt Income Fund
Bonds*	$	—	$	152,289	$	—	$	152,289
Investment Companies*		1,731		—		—		1,731
	Total investments in securities $	1,731	$	152,289	$	—	$	154,020

Small-MidCap Dividend Income Fund
Common Stocks*	$	2,227,663	$	—	$	—	$	2,227,663
Investment Companies*		56,219		—		—		56,219
	Total investments in securities $	2,283,882	$	—	$	—	$	2,283,882

SystematEx International Fund
Common Stocks
Basic Materials	$	—	$	4,606	$	—	$	4,606
Communications		—		4,659		—		4,659
Consumer, Cyclical		—		8,470		—		8,470
Consumer, Non-cyclical		—		15,025		—		15,025
Diversified		12		608		—		620
Energy		—		4,613		—		4,613
Financial		—		12,825		—		12,825
Industrial		—		7,584		—		7,584
Technology		—		2,483		—		2,483
Utilities		—		2,014		—		2,014
Investment Companies*		12		—		—		12
Preferred Stocks
Basic Materials		—		6		—		6
Consumer, Cyclical		—		34		—		34
Consumer, Non-cyclical		—		191		—		191
	Total investments in securities $	24	$	63,118	$	—	$	63,142

SystematEx Large Value Fund
Common Stocks*	$	8,494	$	—	$	—	$	8,494
Investment Companies*		7		—		—		7
	Total investments in securities $	8,501	$	—	$	—	$	8,501

At the end of the period, there were no 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.

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:

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 expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) for certain classes of shares of certain of the Funds. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits. The limits are expressed as a percentage of average daily net assets attributable to each class of shares on an annualized basis during the reporting period. The operating expense limits are as follows:

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 expenses, and other extraordinary expenses. The limits are expressed as a percentage of average daily net assets attributable to Class P shares on an annualized basis during the reporting period. The limits are as follows:

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 and are settled monthly.

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%, .15%, .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 percent 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 .132% 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 and are settled monthly.

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 Credit Opportunities Explorer Fund, Diversified Real Asset Fund, Dynamic High Yield Explorer Fund, Global Multi-Strategy Fund, Opportunistic Municipal Fund, Preferred Securities Fund, and Real Estate Debt Income Fund and 5.50% for Blue Chip Fund, Global Opportunities Equity Hedged Fund, Global Opportunities Fund, International Small Company Fund, Multi-Manager Equity Long/Short Fund, Origin Emerging Markets Fund, Real Estate Allocation Fund, and Small-MidCap Dividend Income Fund. The aggregate amounts of these charges retained by the Distributor for the period ended August 31, 2016, were as follows (amounts in thousands):

Affiliated Ownership. At August 31, 2016, Principal Life Insurance Company (an affiliate of the Managerthe Manager, Principal Securities, Inc., 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 Preferred Securities Fund, $113,000 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 August 31, 2016.

For the year ended August 31, 2016, 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):

For the year ended August 31, 2016, the cost of U.S. government securities purchased and proceeds from U.S. government securities sold (not including short-term investments) by the Funds were as follows (amounts in thousands):

Distributions to Shareholders. The federal income tax character of distributions paid for the periods ended August 31, 2016, and August 31, 2015 were as follows (amounts in thousands):

# Certain Funds may also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. ^ 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).

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

Distributable Earnings. As of August 31, 2016, the components of distributable earnings/(deficit) 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)
Blue Chip Fund	$	2,111	$	—	$	356	$	(329	)	$	175,751		$	—		$	177,889
Credit Opportunities Explorer Fund		23		—		—		(1,110	)		156			(30	)		(961	)
Diversified Real Asset Fund		82,414		—		—		(381,863	)		(3,254	)		(44	)		(302,747	)
Dynamic High Yield Explorer Fund		9		—		—		(1,261	)		(49	)		—			(1,301	)
Global Multi-Strategy Fund		1,206		—		—		(20,690	)		33,837			(10,966	)		3,387
Global Opportunities Equity Hedged Fund		65		—		—		(974	)		254			—			(655	)
Global Opportunities Fund		21,811		—		—		(13,424	)		56,389			—			64,776
International Small Company Fund		1,339		—		—		(2,553	)		1,188			—			(26	)
Multi-Manager Equity Long/Short Fund		1,037		—		—		(2,729	)		3,948			(436	)		1,820
Opportunistic Municipal Fund		—		17		—		(1,440	)		8,334			—			6,911
Origin Emerging Markets Fund		5,349		—		—		(198,575	)		66,415			—			(126,811	)
Preferred Securities Fund		1,957		—		34,796		—			321,516			23,453			381,722
Real Estate Allocation Fund		2		—		4		—			28			—			34
Real Estate Debt Income Fund		33		—		3		—			2,047			—			2,083
Small-MidCap Dividend Income Fund		38,448		—		—		(46,951	)		305,796			—			297,293

*Represents book-to-tax accounting differences related to straddle loss deferrals, constructive sale gain recognition, and defaulted securities.

Capital Loss Carryforwards. For federal income tax purposes, capital loss carryforwards are losses that can be used to offset future capital gains of the Funds. At August 31, 2016, the Funds had approximate net capital loss carryforwards as follows (amounts in

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.

As of August 31, 2016, 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 any 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 August 31, 2016, Blue Chip Fund had an approximate late-year loss of $329,000.

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 August 31, 2016, the Funds recorded reclassifications as follows (amounts in thousands):

Federal Income Tax Basis. At August 31, 2016, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the Funds were as follows (amounts in thousands):

*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.


COMMON STOCKS - 99.92%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 3.32%					Retail - 12.10%
TransDigm Group Inc ^(a)	155,276	$	44,283		AutoZone Inc ^(a)	15,580	$	11,557
					CarMax Inc ^(a)	574,199		33,849
Banks - 4.02%					Dollar Tree Inc ^(a)	195,855		16,197
Wells Fargo & Co	1,055,210		53,605		Starbucks Corp	762,084		42,852
					TJX Cos Inc/The	257,661		19,953
Beverages - 1.83%					Yum! Brands Inc	407,284		36,945
Anheuser-Busch InBev SA/NV ADR	196,376		24,357				$	161,353
					Software - 3.44%
Chemicals - 2.52%					CommerceHub Inc - Series C ^(a)	11,121		164
Air Products & Chemicals Inc	162,899		25,350		Microsoft Corp	796,027		45,740
Monsanto Co	77,219		8,224				$	45,904
		$	33,574		TOTAL COMMON STOCKS		$	1,332,005
Commercial Services - 5.27%					INVESTMENT COMPANIES - 0.07%	Shares Held		Value(000	's)
Brookfield Business Partners LP	36,604		845		Money Market Funds - 0.07%
Moody's Corp	346,403		37,651		Goldman Sachs Financial Square Funds -	871,001		871
PayPal Holdings Inc ^(a)	853,733		31,716		Government Fund
		$	70,212
Diversified Financial Services - 10.90%					TOTAL INVESTMENT COMPANIES		$	871
BlackRock Inc	32,688		12,186		Total Investments		$	1,332,876
Charles Schwab Corp/The	573,722		18,049		Other Assets and Liabilities - 0.01%		$	196
FNF Group	285,791		10,772		TOTAL NET ASSETS - 100.00%		$	1,333,072
MasterCard Inc	572,094		55,281
Visa Inc	605,545		48,989
		$	145,277		(a) Non-Income Producing Security
Electric - 0.37%
Brookfield Infrastructure Partners LP	101,509		4,866

Electronics - 0.42%					Portfolio Summary (unaudited)
Fortive Corp	107,367		5,655		Sector			Percent
					Financial			34.86	%
Engineering & Construction - 1.81%					Communications			25.05	%
SBA Communications Corp ^(a)	211,698		24,165		Consumer, Non-cyclical			13.77	%
					Consumer, Cyclical			12.10	%
Food - 2.16%					Industrial			6.38	%
Mondelez International Inc	439,121		19,769		Technology			3.44	%
Nestle SA ADR	113,986		9,062		Basic Materials			2.52	%
		$	28,831		Energy			1.43	%
Healthcare - Products - 1.84%					Utilities			0.37	%
Danaher Corp	300,669		24,477		Investment Companies			0.07	%
					Other Assets and Liabilities			0.01	%
Insurance - 10.04%					TOTAL NET ASSETS			100.00	%
Aon PLC	325,934		36,293
Berkshire Hathaway Inc - Class B ^(a)	444,193		66,847
Markel Corp ^(a)	32,949		30,679
		$	133,819
Internet - 19.18%
Alphabet Inc - A Shares ^(a)	7,787		6,151
Alphabet Inc - C Shares ^(a)	124,040		95,145
Amazon.com Inc ^(a)	122,331		94,092
Facebook Inc ^(a)	408,523		51,523
Liberty Ventures ^(a)	227,380		8,763
		$	255,674
Media - 5.87%
Liberty Broadband Corp - C Shares ^(a)	375,865		25,758
Liberty Global PLC - C Shares ^(a)	1,703,926		52,532
		$	78,290
Miscellaneous Manufacturers - 0.83%
Colfax Corp ^(a)	370,357		10,992

Pharmaceuticals - 2.67%
Zoetis Inc	697,506		35,643

Pipelines - 1.43%
Kinder Morgan Inc/DE	873,868		19,094

Real Estate - 4.77%
Brookfield Asset Management Inc	1,888,510		63,624

REITS - 5.13%
American Tower Corp	488,349		55,369
Equinix Inc	35,104		12,941
		$	68,310

Schedule of Investments
Credit Opportunities Explorer Fund
August 31, 2016


COMMON STOCKS - 0.03%		Shares Held		Value(000			's)				Principal
Forest Products & Paper - 0.03%								BONDS (continued)			Amount (000's) Value (000's)
Verso Corp ^(a)			796	$		5		Diversified Financial Services (continued)
								Springleaf Finance Corp
TOTAL COMMON STOCKS				$		5		5.25%, 12/15/2019		$	40	$	41
INVESTMENT COMPANIES - 10.40%		Shares Held		Value(000			's)				$		119
Money Market Funds - 10.40%								Electronics - 2.68%
BlackRock Liquidity Funds FedFund Portfolio			2,015,543			2,016		Keysight Technologies Inc
								4.55%, 10/30/2024			500		520
TOTAL INVESTMENT COMPANIES				$		2,016
		Principal						Entertainment - 1.12%
BONDS- 65.26	%	Amount (000's)		Value(000			's)	CCM Merger Inc
								9.13%, 05/01/2019^(d)			75		79
Banks- 13.83	%
Bank of Montreal								Eldorado Resorts Inc
1.62%, 08/27/2021^(b)		$	750		$	751		7.00%, 08/01/2023			55		58
Commonwealth Bank of Australia								GLP Capital LP / GLP Financing II Inc
0.00%, 09/06/2021^{(a),(b),(c),(d)}			700			701		5.38%, 04/15/2026			20		22
JPMorgan Chase & Co								WMG Acquisition Corp
5.00%, 12/29/2049^(b),(e)			70			70		6.75%, 04/15/2022^(d)			55		58
Popular Inc											$		217
7.00%, 07/01/2019			50			52		Food- 0.41	%
Svenska Handelsbanken AB								BI-LO LLC / BI-LO Finance Corp
1.88%, 09/07/2021^(c)			600			598		9.25%, 02/15/2019^(d)			50		43
Toronto-Dominion Bank/The								JBS USA LUX SA / JBS USA Finance Inc
1.66%, 04/07/2021^(b)			500			507		5.88%, 07/15/2024^(d)			35		36
				$		2,679					$		79
Beverages - 8.13%								Healthcare - Products - 0.25%
Anheuser-Busch InBev Finance Inc								Universal Hospital Services Inc
3.65%, 02/01/2026			296			316		7.63%, 08/15/2020			50		48
Coca-Cola Co/The
2.25%, 09/01/2026^(c)			550			550		Healthcare - Services - 0.44%
Molson Coors Brewing Co								Centene Corp
3.00%, 07/15/2026			700			709		5.63%, 02/15/2021			10		11
				$		1,575		6.13%, 02/15/2024			15		16
Building Materials - 1.80%								MPH Acquisition Holdings LLC
								7.13%, 06/01/2024^(d)			55		59
Owens Corning
3.40%, 08/15/2026			350			349					$		86
								Home Builders - 0.24%
Commercial Mortgage Backed Securities - 5.92%								WCI Communities Inc
CD 2007-CD4 Commercial Mortgage Trust								6.88%, 08/15/2021			45		47
5.37%, 12/11/2049			200			202
COMM 2013-CCRE6 Mortgage Trust								Insurance - 9.36%
4.31%, 03/10/2046^(b),(d)			100			89		Jackson National Life Global Funding
								3.05%, 04/29/2026^(d)			600		611
Commercial Mortgage Pass Through
Certificates								MetLife Inc
4.93%, 10/15/2045^(b),(d)			100			103		10.75%, 08/01/2069			500		805
								New York Life Global Funding
JP Morgan Chase Commercial Mortgage								2.35%, 07/14/2026^(d)			350		348
Securities Trust 2007-C1
6.19%, 02/15/2051^(b)			200			202		Voya Financial Inc
								5.65%, 05/15/2053^(b)			50		50
JPMBB Commercial Mortgage Securities
Trust 2014-C24											$		1,814
1.22%, 11/15/2047^(b),(f)			2,701			147		Iron & Steel - 0.29%
4.57%, 11/15/2047^(b)			225			240		Signode Industrial Group Lux SA/Signode
Morgan Stanley Bank of America Merrill								Industrial Group US Inc
Lynch Trust 2015-C25								6.38%, 05/01/2022^(d)			55		56
3.64%, 10/15/2048			150			164
				$		1,147		Media- 1.86	%
Computers - 4.04%								CCO Holdings LLC / CCO Holdings Capital
								Corp
Apple Inc								5.88%, 04/01/2024^(d)			55		59
4.65%, 02/23/2046			250			293
Hewlett Packard Enterprise Co								Charter Communications Operating LLC /
6.35%, 10/15/2045^(d)			250			258		Charter Communications Operating Capital
								6.83%, 10/23/2055^(d)			200		249
Seagate HDD Cayman
4.75%, 01/01/2025			250			231		WideOpenWest Finance LLC /
				$		782		WideOpenWest Capital Corp
								10.25%, 07/15/2019 ^(g)			50		53
Diversified Financial Services - 0.62%
Ally Financial Inc											$		361
5.75%, 11/20/2025			35			37		Metal Fabrication & Hardware - 0.02%
Credit Acceptance Corp								Wise Metals Intermediate Holdings LLC/Wise
7.38%, 03/15/2023			20			21		Holdings Finance Corp
								9.75%, PIK 10.50%, 06/15/2019 ^(d),(h)			5		4
Navient Corp
5.00%, 10/26/2020			5			5
5.88%, 03/25/2021			15			15


		Principal							Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's)			Value(000			's)
Mining - 0.11%					Transportation (continued)
Teck Resources Ltd					Navios Maritime Acquisition Corp / Navios
3.75%, 02/01/2023	$	25	$	21	Acquisition Finance US Inc
						8.13%, 11/15/2021^(d)			$	120		$	91
Miscellaneous Manufacturers - 3.38%											$		142
Bombardier Inc					TOTAL BONDS						$		12,644
4.75%, 04/15/2019^(d)		50		50					Principal
General Electric Co					SENIOR FLOATING RATE INTERESTS -0.26		%	Amount (000's)			Value(000			's)
1.65%, 03/15/2023^(b)		600		604
					Oil & Gas - 0.21%
		$		654	Chesapeake Energy Corp, Term Loan
Mortgage Backed Securities - 3.53%						0.00%, 08/17/2021^(b),(i)		$		40	$		41
Fannie Mae REMICS
5.48%, 07/25/2046^(b),(f)		183		49	REITS- 0.05		%
5.53%, 01/25/2044^(b),(f)		274		50	iStar Inc, Term Loan B
5.63%, 11/25/2042^(b),(f)		174		44		5.50%, 07/01/2020^(b)				9			10
Ginnie Mae
5.09%, 02/20/2045^(b),(f)		218		44	TOTAL SENIOR FLOATING RATE INTERESTS						$		51
5.54%, 11/20/2040^(b),(f)		229		47

5.54%, 05/20/2046^(b),(f)		199		45	U.S. GOVERNMENT & GOVERNMENT			Principal
					AGENCY OBLIGATIONS - 25.77%			Amount (000's)			Value(000			's)
5.59%, 11/20/2041^(b),(f)		217		46
					U.S. Treasury - 25.77%
5.59%, 07/16/2043^(b),(f)		203		34
						1.13%, 08/31/2021		$		3,335	$		3,326
5.59%, 02/20/2046^(b),(f)		196		53
						1.38%, 01/31/2021				350			353
5.59%, 06/20/2046^(b),(f)		179		42
						1.50%, 08/15/2026				1,005			999
5.69%, 11/20/2045^(b),(f)		207		44
						1.75%, 01/31/2023				175			179
5.69%, 01/20/2046^(b),(f)		195		47
						2.50%, 05/15/2046				130			137
6.09%, 04/16/2040^(b),(f)		193		45
											$		4,994
6.14%, 12/20/2040^(b),(f)		241		48
6.14%, 04/16/2042^(b),(f)		207		46	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
					OBLIGATIONS						$		4,994
		$		684	Total Investments						$		19,710
Oil & Gas - 0.83%					Other Assets and Liabilities - (1.72)%						$		(334	)
Continental Resources Inc/OK					TOTAL NET ASSETS - 100.00%						$		19,376
4.50%, 04/15/2023		25		24
5.00%, 09/15/2022		15		14
EP Energy LLC / Everest Acquisition Finance					(a)	Non-Income Producing Security
Inc					(b)	Variable Rate. Rate shown is in effect at August 31, 2016.
7.75%, 09/01/2022		40		22	(c)	Security purchased on a when-issued basis.
9.38%, 05/01/2020		35		23	(d)	Security exempt from registration under Rule 144A of the Securities Act of
Halcon Resources Corp						1933. These securities may be resold in transactions exempt from
8.63%, 02/01/2020^(d)		40		38		registration, normally to qualified institutional buyers. At the end of the
						period, the value of these securities totaled $3,228 or 16.66% of net assets.
Whiting Petroleum Corp
5.00%, 03/15/2019		10		9	(e)	Perpetual security. Perpetual securities pay an indefinite stream of
5.75%, 03/15/2021		35		31		interest, but they may be called by the issuer at an earlier date.
		$		161	(f)	Security is an Interest Only Strip.
Pharmaceuticals - 2.73%					(g)	Security is Illiquid. At the end of the period, the value of these securities
Baxalta Inc						totaled $53 or 0.27% of net assets.
5.25%, 06/23/2045		450		529	(h)	Payment in kind; the issuer has the option of paying additional securities
						in lieu of cash.
Pipelines - 0.22%					(i)	This Senior Floating Rate Note will settle after August 31, 2016, at which
Tesoro Logistics LP / Tesoro Logistics						time the interest rate will be determined.
Finance Corp
6.13%, 10/15/2021		25		26
6.38%, 05/01/2024		15		16
		$		42		Portfolio Summary (unaudited)
Retail - 0.87%					Sector								Percent
BMC Stock Holdings Inc					Government								25.77	%
9.00%, 09/15/2018^(d)		45		47	Financial								23.85	%
Landry's Holdings II Inc					Consumer, Non-cyclical								11.96	%
10.25%, 01/01/2018 ^(d)		120		122	Investment Companies								10.40	%
		$		169	Mortgage Securities								9.45	%
Software - 0.39%					Industrial								8.61	%
Activision Blizzard Inc					Technology								4.44	%
6.13%, 09/15/2023^(d)		70		76	Communications								3.32	%
					Consumer, Cyclical								2.23	%
Telecommunications - 1.46%					Energy								1.26	%
Frontier Communications Corp					Basic Materials								0.43	%
11.00%, 09/15/2025		20		21	Other Assets and Liabilities								(1.72	)%
10.50%, 09/15/2022		10		11	TOTAL NET ASSETS								100.00	%
Verizon Communications Inc
4.13%, 08/15/2046		250		251
		$		283
Transportation - 0.73%
Eletson Holdings Inc
9.63%, 01/15/2022^(d)		70		51

(a) Implied credit spreads, represented in absolute terms, used in determining the market value of credit default swap agreements on corporate issues or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments 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.

Consolidated Schedule of Investments Diversified Real Asset Fund August 31, 2016


COMMON STOCKS - 48.86%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Agriculture - 0.10%					Engineering & Construction (continued)
Archer-Daniels-Midland Co	87,105	$	3,812		Eiffage SA	27,600	$	2,164
					Enav SpA ^(a),(c)	1,861,884		7,726
Automobile Manufacturers - 0.08%					Ferrovial SA	174,439		3,440
Mahindra & Mahindra Ltd	137,293		2,970		Flughafen Zuerich AG	46,887		8,679
					Fraport AG Frankfurt Airport Services	34,716		1,935
Building Materials - 0.35%					Worldwide
Boise Cascade Co ^(a)	127,562		3,347		Grupo Aeroportuario del Centro Norte SAB de	287,551		1,770
Builders FirstSource Inc ^(a)	212,855		2,924		CV
Norbord Inc ^(b)	278,421		6,688		Grupo Aeroportuario del Pacifico SAB de CV	55,100		548
		$	12,959		Hopewell Highway Infrastructure Ltd	3,794,000		2,209
Chemicals - 1.76%					Japan Airport Terminal Co Ltd	39,800		1,572
					SBA Communications Corp ^(a)	88,687		10,124
Agrium Inc	23,867		2,300
CF Industries Holdings Inc	153,093		3,980		Sydney Airport	484,688		2,649
Givaudan SA	2,664		5,510		Vinci SA	34,783		2,643
Ingevity Corp ^(a)	15,969		709				$	54,959
Koninklijke DSM NV	56,191		3,922		Environmental Control - 0.08%
Monsanto Co	49,046		5,223		Tomra Systems ASA ^(b)	277,475		3,095
Mosaic Co/The	245,020		7,368
Novozymes A/S	66,098		2,867		Food - 1.55%
OCI NV ^(a)	128,642		2,258		Ajinomoto Co Inc	222,600		4,724
Potash Corp of Saskatchewan Inc	65,638		1,189		Ariake Japan Co Ltd	38,300		1,812
Potash Corp of Saskatchewan Inc	269,095		4,871		Aryzta AG ^(a)	25,700		1,025
Symrise AG	40,574		2,985		BRF SA	187,100		3,118
Syngenta AG	33,406		14,584		Cal-Maine Foods Inc	34,511		1,585
Tessenderlo Chemie NV ^(a)	105,315		3,352		China Mengniu Dairy Co Ltd	1,000,000		1,891
Yara International ASA	122,720		4,346		Chr Hansen Holding A/S	40,718		2,471
		$	65,464		Emmi AG ^(a)	4,621		3,083
Commercial Services - 1.25%					Flowers Foods Inc	88,612		1,321
Abertis Infraestructuras SA	710,453		11,006		Fuji Oil Holdings Inc	179,100		3,482
Atlantia SpA	176,876		4,551		Hormel Foods Corp	56,180		2,149
Cengage Learning Holdings II Inc ^(a)	11,792		295		Iwatsuka Confectionery Co Ltd ^(b)	5,300		178
					Kato Sangyo Co Ltd ^(b)	66,400		1,455
COSCO SHIPPING Ports Ltd	4,028,000		4,357
Hamburger Hafen und Logistik AG	97,382		1,566		Leroy Seafood Group ASA	51,936		2,328
Hutchison Port Holdings Trust	10,542,952		4,529		McCormick & Co Inc/MD	47,517		4,845
Macquarie Atlas Roads Group	134,935		561		Salmar ASA	56,743		1,570
OHL Mexico SAB de CV ^(a)	2,480,000		3,502		Sanderson Farms Inc	20,271		1,951
Transurban Group	1,862,128		16,019		Sao Martinho SA	78,400		1,212
		$	46,386		Saputo Inc	103,349		3,436
Consumer Products - 0.15%					Sysco Corp	124,125		6,437
Kimberly-Clark Corp	42,474		5,439		Toyo Suisan Kaisha Ltd	68,900		2,826
					Tyson Foods Inc	37,971		2,869
					United Natural Foods Inc ^(a)	40,234		1,835
Cosmetics & Personal Care - 0.70%
Kao Corp	105,400		5,481				$	57,603
Svenska Cellulosa AB SCA	416,135		12,790		Forest Products & Paper - 4.31%
					Acadian Timber Corp ^(b)	142,091		1,973
Unicharm Corp	311,000		7,558
		$	25,829		BillerudKorsnas AB	132,651		2,262
					Canfor Corp ^(a)	545,094		6,330
Electric - 2.07%					Clearwater Paper Corp ^(a)	39,262		2,437
Ameren Corp	66,000		3,262		Deltic Timber Corp ^(b)	151,946		10,778
American Electric Power Co Inc	34,400		2,221
Dominion Resources Inc/VA	46,000		3,411		DS Smith PLC	505,867		2,715
DONG Energy A/S ^(a),(c)	26,400		1,047		Empresas CMPC SA	2,168,453		4,313
Duke Energy Corp	113,300		9,025		Ence Energia y Celulosa SA	80,202		203
Edison International	62,255		4,527		Fibria Celulose SA ADR	1,463,386		10,039
Enel SpA	1,002,388		4,430		Holmen AB	150,919		5,272
					Interfor Corp ^(a)	624,708		7,422
Engie SA	78,232		1,250
Eversource Energy	70,255		3,792		International Paper Co	177,191		8,592
Huadian Fuxin Energy Corp Ltd	9,024,000		2,321		Klabin SA	3,137,300		16,487
Hydro One Ltd ^(c)	23,853		477		Metsa Board OYJ	304,733		1,797
Iberdrola SA	1,148,476		7,565		Mondi PLC	537,886		10,945
					Pope Resources a Delaware LP ^(b)	70,006		4,447
Infraestructura Energetica Nova SAB de CV	613,200		2,367
NextEra Energy Inc	100,600		12,167		Smurfit Kappa Group PLC	391,266		9,657
Origin Energy Ltd	125,900		496		Smurfit Kappa Group PLC	27,633		684
PG&E Corp	300,752		18,628		Stora Enso OYJ	607,593		5,363
		$	76,986		Sumitomo Forestry Co Ltd	415,100		5,619
					Suzano Papel e Celulose SA	3,357,900		10,534
Electronics - 0.17%					TFS Corp Ltd ^(b)	3,175,625		3,745
Trimble Navigation Ltd ^(a)	225,833		6,188
					UPM-Kymmene OYJ	358,565		7,207
					West Fraser Timber Co Ltd	495,733		16,690
Energy - Alternate Sources - 0.06%
					Western Forest Products Inc	2,807,777		4,539
China Longyuan Power Group Corp Ltd	2,639,000		2,212
							$	160,050
Engineering & Construction - 1.48%					Gas - 1.95%
Aena SA ^(c)	51,631		7,298		Beijing Enterprises Holdings Ltd	203,000		1,162
Auckland International Airport Ltd	404,900		2,202		CenterPoint Energy Inc	97,114		2,182

Consolidated Schedule of Investments Diversified Real Asset Fund August 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Gas (continued)					Pipelines (continued)
China Gas Holdings Ltd	1,481,134	$	2,514		Buckeye Partners LP	362,467	$	25,467
Enagas SA	83,747		2,461		Columbia Pipeline Partners LP	146,477		1,988
ENN Energy Holdings Ltd	664,951		3,718		Enbridge Energy Management LLC ^(a)	204,007		4,643
Hong Kong & China Gas Co Ltd	1,781,169		3,393		Enbridge Inc	558,509		22,027
National Grid PLC	1,302,908		17,931		Energy Transfer Equity LP	945,898		16,932
NiSource Inc	134,817		3,228		Energy Transfer Partners LP	495,366		19,785
ONE Gas Inc	33,143		2,029		Enterprise Products Partners LP	1,415,578		37,371
Sempra Energy	161,911		16,940		EQT Midstream Partners LP ^(b)	335,564		26,379
Snam SpA	1,290,559		7,163		Genesis Energy LP	316,270		11,319
Southcross Holdings Borrower LP ^(a),(b)	37		12		Kinder Morgan Inc/DE	965,100		21,087
Southwest Gas Corp	77,474		5,409		Koninklijke Vopak NV	68,877		3,501
Spire Inc	33,100		2,142		Magellan Midstream Partners LP	523,508		36,818
Western Gas Equity Partners LP	59,604		2,198		MPLX LP	783,079		25,943
		$	72,482		ONEOK Partners LP	552,210		21,398
Healthcare - Services - 0.00%					Pembina Pipeline Corp	68,506		2,061
Millennium Health LLC ^(a),(b)	33,861		26		Pembina Pipeline Corp	159,572		4,813
Millennium Health LLC ^(a),(b),(d)	20,580		—		Phillips 66 Partners LP	352,851		17,456
Millennium Health LLC ^(a),(b),(d)	19,318		—		Plains All American Pipeline LP	1,162,384		32,617
		$	26		Shell Midstream Partners LP	397,823		12,122
Holding Companies - Diversified - 0.32%					Spectra Energy Corp	162,362		5,784
China Merchants Port Holdings Co Ltd	3,195,376		9,082		Spectra Energy Partners LP	287,351		13,112
Empresas COPEC SA	325,843		2,854		Sunoco Logistics Partners LP	812,060		24,037
		$	11,936		Tallgrass Energy Partners LP	184,189		8,487
Home Builders - 0.41%					Tesoro Logistics LP	397,815		19,079
Lennar Corp - A Shares	128,056		6,057		TransCanada Corp	522,198		23,681
Toll Brothers Inc ^(a)	293,085		9,112		Veresen Inc	508,960		5,014
					Western Gas Partners LP ^(b)	388,280		19,538
		$	15,169
					Williams Cos Inc/The	1,168,445		32,646
Home Furnishings - 0.08%
Rational AG	6,070		2,979		Williams Partners LP	178,332		6,794
							$	507,721
Housewares - 0.06%					Real Estate - 1.59%
					ADO Properties SA ^(c)	159,149		6,968
Scotts Miracle-Gro Co/The	25,267		2,092
					Aeon Mall Co Ltd	384,400		5,418
Lodging - 0.10%					Deutsche Wohnen AG	430,573		16,164
City Developments Ltd	600,100		3,731		Fabege AB	415,259		7,697
					Mitsui Fudosan Co Ltd	546,000		11,790
Machinery - Diversified - 0.87%					New World Development Co Ltd	5,434,000		6,795
AGCO Corp	76,384		3,708		UNITE Group PLC/The	503,858		4,147
Alamo Group Inc	29,148		1,889				$	58,979
ANDRITZ AG	67,334		3,439		REITS - 11.70%
Bucher Industries AG	12,838		3,253		Agree Realty Corp	92,162		4,423
Deere & Co	95,243		8,053		Alexandria Real Estate Equities Inc	89,008		9,799
Krones AG	16,895		1,615		American Homes 4 Rent	242,050		5,294
Kubota Corp	172,700		2,539		American Tower Corp	209,574		23,762
Middleby Corp/The ^(a)	28,718		3,680		Apartment Investment & Management Co	102,441		4,628
Valmet OYJ	322,873		4,310		Assura PLC	3,885,804		2,985
		$	32,486		AvalonBay Communities Inc	71,081		12,440
Oil & Gas - 0.73%					Boston Properties Inc	58,494		8,197
					CatchMark Timber Trust Inc ^(b)	387,023		4,528
Antero Midstream Partners LP	343,306		9,462
Cheniere Energy Inc ^(a)	112,800		4,839		Crown Castle International Corp	202,861		19,224
EQT GP Holdings LP	85,787		2,152		CubeSmart	286,544		7,889
Valero Energy Partners LP ^(b)	253,229		10,608		DDR Corp	234,464		4,434
Vantage Drilling International ^(a),(d)	1,554		—		Dexus Property Group	836,490		6,102
		$	27,061		Digital Realty Trust Inc	67,699		6,708
					Duke Realty Corp	395,196		11,113
Oil & Gas Services - 0.10%
Targa Resources Corp	87,230		3,801		EPR Properties	86,790		6,797
					Equinix Inc	28,412		10,474
					Equity One Inc	247,730		7,690
Packaging & Containers - 1.35%
Ball Corp	69,416		5,497		Equity Residential	76,332		4,952
FP Corp	58,800		3,103		Essex Property Trust Inc	38,369		8,714
Graphic Packaging Holding Co	502,588		7,208		Federal Realty Investment Trust	28,836		4,585
					Fortune Real Estate Investment Trust	2,802,000		3,581
Huhtamaki OYJ	60,222		2,621		Frasers Logistics & Industrial Trust ^(a)	8,302,356		5,941
KapStone Paper and Packaging Corp	542,373		9,497
Mayr Melnhof Karton AG ^(b)	6,896		777		Gecina SA	52,480		8,225
Multi-Color Corp	33,424		2,234		General Growth Properties Inc	269,771		7,861
Packaging Corp of America	122,258		9,613		Goodman Group	2,009,319		11,441
WestRock Co	201,924		9,672		Great Portland Estates PLC	309,810		2,757
					Hoshino Resorts REIT Inc	157		1,872
		$	50,222
					Industrial & Infrastructure Fund Investment	471		2,346
Pharmaceuticals - 0.09%					Corp
Zoetis Inc	67,661		3,457
					Japan Hotel REIT Investment Corp	6,009		5,168
					Japan Logistics Fund Inc	1,689		3,851
Pipelines - 13.66%					Japan Retail Fund Investment Corp	2,830		6,363
APA Group	839,702		5,822
					Klepierre	150,453		7,066

Consolidated Schedule of Investments Diversified Real Asset Fund August 31, 2016


COMMON STOCKS (continued)			Shares Held	Value(000			's)			Principal
REITS (continued)								BONDS (continued)		Amount (000's)		Value(000			's)
Link REIT			1,322,000	$		9,603		Federal & Federally Sponsored Credit (continued)
Mirvac Group			2,615,430			4,552		Federal Farm Credit Banks (continued)
NewRiver REIT PLC			294,732			1,235		0.98%, 12/14/2017		$	10,000		$	9,988
Nomura Real Estate Master Fund Inc			4,260			7,034						$		85,694
Orix JREIT Inc			3,264			5,709		Finance - Mortgage Loan/Banker - 4.96%
Physicians Realty Trust			450,552			9,646		Fannie Mae
Potlatch Corp			268,251			10,159		0.53%, 07/20/2017^(e)			13,175			13,177
Prologis Inc			190,643			10,125		0.60%, 12/20/2017^(e)			20,000			20,016
Public Storage			27,582			6,177		Fannie Mae Discount Notes
Rayonier Inc ^(b)			564,031			15,528		0.41%, 01/17/2017^(f)			3,000			2,995
Regency Centers Corp			50,489			4,066		Federal Home Loan Banks
Rexford Industrial Realty Inc			245,214			5,476		0.53%, 04/25/2017^(e)			7,000			7,001
Senior Housing Properties Trust			253,386			5,661		0.57%, 12/07/2017^(e)			8,500			8,504
Simon Property Group Inc			135,883			29,279		0.57%, 12/07/2017^(e)			10,000			10,004
SL Green Realty Corp			47,344			5,573		0.60%, 01/04/2018^(e)			2,000			2,004
STORE Capital Corp			177,267			5,252		0.61%, 06/16/2017^(e)			10,000			10,017
Sun Communities Inc			80,037			6,124		0.64%, 09/11/2017^(e)			15,000			15,033
Sunstone Hotel Investors Inc			203,583			2,828		0.64%, 10/25/2017^(e)			6,200			6,209
Unibail-Rodamco SE			13,159			3,621		0.66%, 09/07/2017^(e)			28,000			28,062
Viva Energy REIT ^(a)			1,200,886			2,292		0.66%, 10/27/2017^(e)			5,800			5,809
Welltower Inc			70,005			5,373		0.66%, 03/08/2018^(e)			10,000			10,023
Westfield Corp			1,020,583			7,828		Freddie Mac
Weyerhaeuser Co			958,213			30,519		0.75%, 02/26/2018^(e)			7,670			7,672
				$		434,870		1.00%, 03/08/2017			15,218			15,250
Retail - 0.06%								1.00%, 05/11/2018			5,955			5,949
Tractor Supply Co			25,886			2,173		1.05%, 02/26/2018			1,600			1,601
								1.05%, 05/25/2018			10,000			10,001
Storage & Warehousing - 0.06%								Freddie Mac Discount Notes
Safestore Holdings PLC			415,985			2,035		0.41%, 12/23/2016^(f)			5,000			4,995
												$		184,322
Telecommunications - 0.23%								Media- 0.01	%
Cellnex Telecom SA ^(c)			196,900			3,438		iHeartCommunications Inc
Eutelsat Communications SA			201,100			3,918		9.00%, 12/15/2019			523			423
Intelsat SA ^(a)			501,183			1,353
				$		8,709		Sovereign - 0.74%
Textiles - 0.26%								Deutsche Bundesrepublik Inflation Linked
Mohawk Industries Inc ^(a)			46,225			9,836		Bond
								0.10%, 04/15/2023		EUR	2,860			3,442
Transportation - 0.63%								Italy Buoni Poliennali Del Tesoro
East Japan Railway Co			61,736			5,302		1.25%, 09/15/2032^(c)			576			706
Groupe Eurotunnel SE			1,346,548			14,831		2.10%, 09/15/2016			11			12
Prumo Logistica SA ^(a)			897,274			1,942		2.35%, 09/15/2024^(c)			3,169			4,127
West Japan Railway Co			21,200			1,215		2.55%, 09/15/2041			1,397			2,128
				$		23,290		2.60%, 09/15/2023			315			416
Water- 0.50	%							Japanese Government CPI Linked Bond
American Water Works Co Inc			75,405			5,579		0.10%, 09/10/2024		JPY	886,042			9,005
Cia de Saneamento Basico do Estado de Sao			122,100			1,105		0.10%, 03/10/2025			302,993			3,085
Paulo ADR								0.10%, 03/10/2026			67,230			687
Pennon Group PLC			775,166			8,939		New Zealand Government Bond
United Utilities Group PLC			241,304			3,082		2.52%, 09/20/2035^(e)		NZD	2,959			2,495
				$		18,705		3.07%, 09/20/2030^(e)			1,546			1,370
TOTAL COMMON STOCKS				$		1,815,712						$		27,473
INVESTMENT COMPANIES - 8.46%			Shares Held	Value(000			's)	TOTAL BONDS				$		297,912
Money Market Funds - 8.46%								COMMODITY INDEXED STRUCTURED		Principal
BlackRock Liquidity Funds FedFund Portfolio			7,906,309			7,906		NOTES- 1.01	%	Amount (000's)		Value(000			's)
Cash Account Trust - Government & Agency			157,200,689			157,201		Banks- 0.36	%
Portfolio - Government Cash Managed								Royal Bank of Canada; Dow Jones - UBS
Morgan Stanley Institutional Liquidity Funds -			149,323,074			149,323		Commodity Index Linked Note
Government Portfolio								0.36%, 01/11/2017^(c),(e)		$	3,900			4,238
				$		314,430		0.36%, 02/13/2017^(c),(e)			7,600			9,161
TOTAL INVESTMENT COMPANIES				$		314,430						$		13,399
			Principal					Supranational Bank - 0.65%
BONDS- 8.02	%		Amount (000's)	Value(000			's)	International Bank for Reconstruction &
Federal & Federally Sponsored Credit - 2.31%								Development; Dow Jones - UBS Commodity
Federal Farm Credit Banks								Index Linked Note
0.52%, 10/13/2017^(e)		$	18,000		$	17,995		0.99%, 01/19/2017^(e)			24,000			24,277
0.54%, 11/22/2017^(e)			5,000			4,999
0.54%, 03/22/2018^(e)			10,000			9,997		TOTAL COMMODITY INDEXED STRUCTURED NOTES				$		37,676
0.58%, 12/14/2016^(e)			20,000			20,008
0.63%, 08/01/2018^(e)			10,000			9,999
0.65%, 04/05/2018^(e)			4,700			4,701
0.66%, 01/25/2018^(e)			8,000			8,007


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016



			Principal					SENIOR FLOATING RATE INTERESTS		Principal
CONVERTIBLE BONDS - 0.00%			Amount (000's)	Value(000			's)	(continued)		Amount (000's)		Value(000 's)
Oil & Gas - 0.00%								Commercial Services (continued)
Vantage Drilling International								Allied Universal Holdco LLC, Term Loan
1.00%, PIK 1.00%, 12/31/2030^{(b),(d),(e),(g)}		$	269		$	123		4.75%, 07/27/2022^(e)	$	1,493	$	1,463
								Brand Energy & Infrastructure Services Inc,
TOTAL CONVERTIBLE BONDS				$		123		Term Loan B
SENIOR FLOATING RATE INTERESTS -			Principal					4.75%, 11/20/2020^(e)		907		896
15.94	%		Amount (000's)	Value(000			's)	Ceridian HCM Holding Inc, Term Loan B2
Advertising - 0.13%								4.50%, 09/15/2020^(e)		1,054		1,017
Advantage Sales & Marketing Inc, Term								Global Payments Inc, Term Loan B
Loan								4.02%, 03/24/2023^(e)		750		755
7.50%, 07/21/2022^(e)		$	1,000	$		951		KAR Auction Services Inc, Term Loan B3
Advantage Sales & Marketing Inc, Term Loan								4.25%, 03/04/2023^(e)		998		1,009
B								Laureate Education Inc, Term Loan B
4.25%, 07/21/2021^(e)			2,015			1,999		5.00%, 06/16/2018^(e)		122		121
Checkout Holding Corp, Term Loan B								Pharmaceutical Product Development LLC,
4.50%, 04/03/2021^(e)			1,715			1,518		Term Loan B
Getty Images Inc, Term Loan B								4.25%, 08/05/2022^(e)		4,364		4,376
0.00%, 10/03/2019^(e),(h)			630			533		ServiceMaster Co LLC/The, Term Loan B
								4.25%, 06/25/2021^(e)		6,687		6,727
				$		5,001
Aerospace & Defense - 0.18%								Syniverse Holdings Inc, Term Loan B
								4.00%, 04/23/2019^(e)		1,172		1,039
Sequa Corp, Term Loan B
5.25%, 05/29/2017^(e)			2,829			2,431		4.00%, 04/23/2019^(e)		2,207		1,960
TransDigm Inc, Term Loan D								WEX Inc, Term Loan B
3.75%, 05/21/2021^(e)			4,167			4,156		4.25%, 06/24/2023^(e)		1,000		1,007
				$		6,587					$	21,649
Airlines - 0.30%								Computers - 0.44%
American Airlines Inc, Term Loan B								CSRA Inc, Term Loan B
3.25%, 06/27/2020^(e)			3,404			3,402		3.75%, 10/06/2022^(e)		1,961		1,969
3.50%, 10/10/2021^(b),(e)			2,772			2,773		Harland Clarke Holdings Corp, Term Loan
American Airlines Inc, Term Loan B1								B3
3.50%, 05/23/2019^(e)			2,185			2,184		7.00%, 04/26/2018^(e)		1,988		1,954
Delta Air Lines Inc, Term Loan B1								Harland Clarke Holdings Corp, Term Loan
3.25%, 10/18/2018^(e)			2,659			2,664		B4
								6.99%, 08/30/2019^(e)		938		916
				$		11,023
Automobile Manufacturers - 0.07%								iQor US Inc, Term Loan B
								6.00%, 02/19/2021^(b),(e)		2,727		2,318
FCA US LLC, Term Loan B
3.25%, 12/05/2018^(e)			2,497			2,499		Riverbed Technology Inc, Term Loan B
								5.00%, 04/25/2022^(e)		1,951		1,962
Automobile Parts & Equipment - 0.05%								Western Digital Corp, Term Loan B
								4.50%, 04/29/2023^(e)		7,200		7,237
Allison Transmission Inc, Term Loan B3
3.50%, 09/23/2019^(e)			1,975			1,979					$	16,356
								Consumer Products - 0.51%
Beverages - 0.16%								Dell International LLC, Term Loan
								0.00%, 05/31/2019^(e),(h)		3,000		2,943
Jacobs Douwe Egberts BV, Term Loan B
4.25%, 07/02/2021^(e)			3,692			3,713		0.00%, 06/02/2021^(e),(h)		2,000		1,934
Keurig Green Mountain Inc, Term Loan B								Dell International LLC, Term Loan B2
5.25%, 01/21/2023^(e)			2,367			2,388		4.00%, 04/29/2020^(e)		10,591		10,623
				$		6,101		Dell International LLC, Term Loan C
								3.75%, 09/24/2018^(e)		1,371		1,369
Biotechnology - 0.11%

Concordia International Corp, Term Loan B								Prestige Brands Inc, Term Loan B3
5.25%, 10/21/2021^(e)			4,489			4,244		4.12%, 09/03/2021(e)		588		590
								Spectrum Brands Inc, Term Loan
								3.51%, 06/16/2022^(e)		1,521		1,527
Building Materials - 0.21%
Headwaters Inc, Term Loan B1											$	18,986
4.00%, 03/24/2022^(e)			4,975			4,975		Cosmetics & Personal Care - 0.05%
Quikrete Holdings Inc, Term Loan B								Revlon Consumer Products Corp, Term Loan
4.00%, 09/18/2020^(e)			945			948		0.00%, 07/21/2023^(e),(h)		2,000		1,997
Safway Group Holding LLC, Term Loan
5.75%, 08/04/2023^(e)			2,000			2,000		Distribution & Wholesale - 0.15%
				$		7,923		HD Supply Inc, Term Loan
								3.75%, 08/06/2021^(e)		1,816		1,825
Chemicals - 0.09%
								Univar USA Inc, Term Loan B
Axalta Coating Systems US Holdings Inc,								4.25%, 06/24/2022^(e)		3,624		3,617
Term Loan B
3.75%, 02/01/2020^(e)			422			424					$	5,442
Duke Finance LLC, Term Loan								Diversified Financial Services - 0.19%
0.00%, 10/28/2021^(e),(h)			1,500			1,474		AlixPartners LLP, Term Loan B
								4.50%, 07/22/2022^(e)		1,241		1,247
Minerals Technologies Inc, Term Loan B2
4.75%, 05/09/2021^(e)			1,305			1,312		Delos Finance Sarl, Term Loan B
								3.50%, 02/26/2021^(e)		1,250		1,253
				$		3,210
Commercial Services - 0.58%								Walter Investment Management Corp, Term
Acosta Holdco Inc, Term Loan B								Loan
								4.75%, 12/11/2020^(e)		5,110		4,676
4.25%, 09/26/2021^(e)			1,316			1,279
											$	7,176


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's)		Value (000's)	(continued)		Amount (000's)		Value (000's)
	Electric - 0.63%						Healthcare - Products (continued)
	Calpine Corp, Term Loan B7						Carestream Health Inc, Term Loan
	3.64%, 05/05/2023^(e)		$	2,500	$	2,508	9.50%, 12/15/2019^(e)	$	729	$	686
	Dayton Power & Light Co/The, Term Loan B						Carestream Health Inc, Term Loan B
	0.00%, 08/19/2022^(e),(h)			2,250		2,266	5.00%, 06/05/2019^(e)		4,551		4,321
	Dynegy Inc, Term Loan C						ConvaTec Inc, Term Loan B
	5.00%, 06/22/2023^(e)			2,000		2,000	4.25%, 12/22/2016^(e)		6,873		6,888
	Energy Future Intermediate Holding Co LLC,						DJO Finance LLC, Term Loan B
	DIP Term Loan						4.25%, 06/24/2020^(e)		1,733		1,669
	4.25%, 12/19/2016^(e)			5,500		5,521	Kinetic Concepts Inc, Term Loan F1
	Texas Competitive Electric Holdings Co LLC,						5.00%, 11/04/2020^(e)		12,114		12,160
	Term Loan						Sterigenics-Nordion Holdings LLC, Term
	7.08%, 07/27/2023^(e)			8,957		8,977	Loan B
	7.08%, 07/27/2023^(e)			2,043		2,048	4.25%, 05/06/2022^(e)		2,360		2,353
				$		23,320			$		28,324
	Electronics - 0.07%						Healthcare - Services - 0.87%
	TTM Technologies Inc, Term Loan B						Ardent Legacy Acquisitions Inc, Term Loan
	6.00%, 05/07/2021^(e)			2,490		2,493	B
							6.50%, 07/30/2021^(e)		246		245
	Engineering & Construction - 0.07%						CHS/Community Health Systems Inc, Term
	AECOM, Term Loan B						Loan F
	3.75%, 09/17/2021^(e)			946		952	4.09%, 01/25/2018^(e)		28		28
	Engility Corp, Term Loan						CHS/Community Health Systems Inc, Term
	5.75%, 08/04/2023^(e)			1,456		1,466	Loan G
				$		2,418	3.75%, 12/13/2019^(e)		2,813		2,700
	Entertainment - 0.66%						CHS/Community Health Systems Inc, Term
	CCM Merger Inc, Term Loan B						Loan H
	4.50%, 07/30/2021^(e)			1,468		1,476	4.00%, 01/14/2021^(e)		5,627		5,392
	Delta 2 Lux Sarl, Term Loan B						DaVita HealthCare Partners Inc, Term Loan
	7.75%, 07/29/2022^(e)			2,250		2,227	B
	Delta 2 Lux Sarl, Term Loan B3						3.50%, 06/24/2021^(e)		1,683		1,691
	4.75%, 07/30/2021^(e)			5,368		5,337	Drumm Investors LLC, Term Loan
	SGMS Escrow Corp, Term Loan B2						9.50%, 05/04/2018^(e)		1,940		1,901
	6.00%, 09/17/2021^(e)			12,154		12,145	HCA Inc, Term Loan
	William Morris Endeavor Entertainment LLC,						3.57%, 02/05/2024^(e)		3,000		3,027
	Term Loan B						3.77%, 03/01/2023^(e)		3,226		3,263
	5.25%, 05/06/2021^(e)			2,207		2,209	Heartland Dental LLC, Term Loan
	WMG Acquisition Corp, Term Loan B						5.50%, 12/21/2018^(e)		2,914		2,894
	3.75%, 07/07/2020^(e)			992		988	IASIS Healthcare LLC, Term Loan B2
				$		24,382	4.50%, 05/03/2018^(e)		4,127		4,077
	Environmental Control - 0.24%						MPH Acquisition Holdings LLC, Term Loan
							B
	Advanced Disposal Services Inc, Term Loan						5.00%, 05/25/2023^(e)		1,750		1,768
	B2
	3.75%, 10/09/2019^(e)			6,702		6,692	Quorum Health Corp, Term Loan
	Tervita Corp, Term Loan B						6.75%, 04/29/2022^(e)		4,498		4,301
	6.25%, 05/14/2018^(e)			2,211		2,157	Select Medical Corp, Term Loan F
							6.00%, 03/03/2021^(e)		964		970
				$		8,849
	Food- 0.91	%							$		32,257
	AdvancePierre Foods Inc, Term Loan B						Holding Companies - Diversified - 0.28%
	4.50%, 05/26/2023^(e)			2,106		2,120	Emerald Expositions Holding Inc, Term Loan
	Albertsons LLC, Term Loan B4						B
	4.50%, 08/25/2021^(e)			10,763		10,804	4.75%, 06/17/2020^(e)		2,868		2,870
	Albertsons LLC, Term Loan B6						MGOC Inc, Term Loan B
	4.75%, 06/01/2023^(e)			8,019		8,062	4.00%, 07/30/2020^(e)		2,986		2,986
	Pinnacle Foods Finance LLC, Term Loan G						Travelport Finance Luxembourg Sarl, Term
	3.25%, 04/29/2020^(e)			2,425		2,431	Loan B
							5.00%, 09/02/2021^(e)		4,426		4,429
	Pinnacle Foods Finance LLC, Term Loan H
	3.25%, 04/29/2020^(e)			486		487			$		10,285
	SUPERVALU Inc, Term Loan						Insurance - 0.11%
	5.50%, 03/21/2019^(e)			3,569		3,570	Alliant Holdings Intermediate LLC, Term
	US Foods Inc, Term Loan B						Loan B
	4.00%, 06/15/2023^(e)			5,534		5,558	4.50%, 07/27/2022^(e)		1,995		1,987
	Wilton Brands LLC, Term Loan						HUB International Ltd, Term Loan B
	8.50%, 08/22/2018^(b),(e)			1,056		871	4.00%, 09/17/2020^(e)		2,209		2,200
				$		33,903			$		4,187
	Gas- 0.00	%					Internet - 0.30%
	Southcross Holdings Borrower LP, Term Loan						EIG Investors Corp, Term Loan B
	B						6.48%, 11/09/2019^(e)		2,077		1,956
	4.50%, PIK 5.50%, 04/13/2023^(b),(e),(g)			33		28	TIBCO Software Inc, Term Loan B
							6.50%, 11/25/2020^(e)		4,597		4,480
	Healthcare - Products - 0.76%						Uber Technologies Inc, Term Loan B
	Alere Inc, Term Loan B						5.00%, 07/07/2023^(e)		4,250		4,253
	4.50%, 06/10/2022^(e)			251		247


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's)		Value (000's)	(continued)		Amount (000's)		Value (000's)
	Internet (continued)						Media (continued)
	VFH Parent LLC, Term Loan B						iHeartCommunications Inc, Term Loan D-
	5.25%, 11/05/2019^(e)		$	304	$	304	EXT
	Zayo Group LLC, Term Loan B						7.27%, 01/22/2019^(e)	$	21,205	$	16,254
	3.75%, 05/06/2021^(e)			135		135	iHeartCommunications Inc, Term Loan E
				$		11,128	8.02%, 07/30/2019^(e)		2,986		2,282
	Investment Companies - 0.01%						McGraw-Hill Global Education Holdings
	New Millennium Holdco Inc, Term Loan						LLC, Term Loan
	7.50%, 12/21/2020^(b),(e)			1,153		548	5.00%, 05/02/2022^(e)		2,500		2,511
							Mediacom Illinois LLC, Delay-Draw Term
	Leisure Products & Services - 0.11%						Loan G-DD
	Equinox Holdings Inc, Term Loan B						3.50%, 06/18/2021^(e)		491		492
	5.00%, 01/31/2020^(e)			1,210		1,214	MTL Publishing LLC, Term Loan B3
	Life Time Fitness Inc, Term Loan B						4.00%, 08/12/2022^(e)		2,920		2,920
	4.25%, 06/03/2022^(e)			1,980		1,981	Springer Science+Business Media GmbH,
	Sabre GLBL Inc, Term Loan B2						Term Loan B9
	4.50%, 02/19/2019^(e)			807		809	4.75%, 08/14/2020^(e)		1,629		1,576
				$		4,004	Tribune Media Co, Term Loan B
							3.75%, 12/27/2020^(e)		4,137		4,145
	Leisure Time - 0.04%
	Planet Fitness, Term Loan						Virgin Media Investment Holdings Ltd, Term
	4.50%, 03/26/2021^(e)			1,237		1,244	Loan F
							3.65%, 06/07/2023^(e)		904		904
	Sabre GLBL Inc, Term Loan C
	4.00%, 02/15/2018^(e)			180		180	WideOpenWest Finance LLC, Term Loan
							0.00%, 08/18/2023^(e),(h)		2,453		2,440
				$		1,424
	Lodging - 0.32%						Ziggo BV, Delay-Draw Term Loan B3-DD
							3.70%, 01/15/2022^(e)		2,210		2,199
	Boyd Gaming Corp, Term Loan
	0.00%, 08/16/2023^(e),(h)			1,830		1,837	Ziggo BV, Term Loan B1
							3.65%, 01/15/2022^(e)		2,099		2,088
	Boyd Gaming Corp, Term Loan B
	4.00%, 08/07/2020^(e)			1,830		1,834	Ziggo BV, Term Loan B2
							3.66%, 01/15/2022^(e)		1,441		1,434
	CityCenter Holdings LLC, Term Loan B
	4.25%, 10/09/2020^(e)			1,826		1,836			$		61,805
	Extended Stay America Inc, Term Loan						Mining - 0.15%
	0.00%, 08/17/2023^(e),(h)			2,500		2,505	Fairmount Santrol Inc, Term Loan B2
							0.00%, 09/05/2019^(e),(h)		2,500		2,163
	Hilton Worldwide Finance LLC, Term Loan
	B1						FMG Resources August 2006 Pty Ltd, Term
	3.50%, 09/23/2020^(e)			268		269	Loan B
							3.75%, 06/30/2019^(e)		3,285		3,265
	Hilton Worldwide Finance LLC, Term Loan
	B2								$		5,428
	2.74%, 10/26/2023^(e)			2,743		2,755	Miscellaneous Manufacturers - 0.05%
	Intrawest Operations Group LLC, Term Loan						Gates Global LLC, Term Loan B
	B						4.25%, 06/11/2021^(e)		2,027		1,994
	5.00%, 11/26/2020^(e)			1,039		1,043
				$		12,079	Oil & Gas - 0.24%
	Machinery - Construction & Mining - 0.02%						Drillships Financing Holding Inc, Term Loan
	North American Lifting Holdings Inc, Term						B1
	Loan						6.00%, 02/02/2021^(e)		2,209		1,012
	5.50%, 11/26/2020^(e)			1,034		788	EP Energy LLC, Term Loan
							0.00%, 06/30/2021^(e),(h)		160		157
	Machinery - Diversified - 0.25%						EP Energy LLC, Term Loan B2
							0.00%, 04/30/2019^(e),(h)		1,200		1,170
	Gardner Denver Inc, Term Loan
	4.25%, 07/23/2020^(e)			3,747		3,553	EP Energy LLC, Term Loan B3
	RBS Global Inc, Term Loan B						0.00%, 05/24/2018^(e),(h)		1,500		1,466
	4.00%, 05/14/2020^(e)			2,319		2,318	Fieldwood Energy LLC, Term Loan
							8.00%, 08/31/2020^(e)		1,346		1,117
	Zebra Technologies Corp, Term Loan B
	4.00%, 10/27/2021^(e)			3,325		3,356	8.37%, 09/17/2020^(e)		2,514		1,678
							8.38%, 09/20/2020^(e)		914		329
				$		9,227
	Media- 1.66	%					Fieldwood Energy LLC, Term Loan B
							3.88%, 09/28/2018^(e)		1,664		1,418
	Altice US Finance I Corp, Term Loan B
	4.25%, 12/14/2022^(e)			6,115		6,138	Seadrill Operating LP, Term Loan B
							4.00%, 02/12/2021^(e)		1,065		511
	Charter Communications Operating LLC,
	Term Loan F								$		8,858
	3.00%, 01/19/2021^(e)			2,992		2,994	Oil & Gas Services - 0.03%
							Seventy Seven Operating LLC, Term Loan B
	Charter Communications Operating LLC,						3.75%, 06/17/2021^(e)		1,188		1,034
	Term Loan I
	3.50%, 01/24/2023^(e)			4,988		5,012
	Cumulus Media Holdings Inc, Term Loan B						Packaging & Containers - 0.28%
	4.25%, 12/18/2020^(e)			8,436		5,856	BWAY Holding Co, Term Loan B
	Gray Television Inc, Term Loan B						5.50%, 08/07/2020^(e)		3,083		3,093
	3.94%, 06/10/2021^(e)			594		596	Reynolds Group Holdings Inc, Term Loan
							0.00%, 01/20/2023^(e),(h)		7,000		7,007
	Houghton Mifflin Harcourt Publishers Inc,
	Term Loan B
	4.00%, 05/11/2021^(e)			1,980		1,964


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's) Value (000's)			(continued)		Amount (000's) Value (000's)
	Packaging & Containers (continued)						Retail (continued)
	SIG Combibloc PurchaseCo Sarl, Term Loan						Rite Aid Corp, Term Loan 2
	B						4.88%, 06/11/2021^(e)	$	2,750	$	2,754
	4.25%, 02/03/2022^(e)		$	247	$	247	Serta Simmons Bedding LLC, Term Loan B
				$		10,347	4.25%, 10/01/2019^(e)		664		666
	Pharmaceuticals - 0.51%								$		44,815
	Catalent Pharma Solutions Inc, Term Loan B						Semiconductors - 0.53%
	4.25%, 05/07/2021^(e)			4,780		4,804	Avago Technologies Cayman Finance Ltd,
	DPx Holdings BV, Term Loan B						Term Loan B3
	4.25%, 01/22/2021^(e)			2,207		2,197	3.51%, 02/01/2023^(e)		7,620		7,685
	Grifols Worldwide Operations USA Inc, Term						Cavium Inc, Term Loan
	Loan B						3.75%, 08/10/2022^(e)		3,000		3,008
	3.44%, 03/05/2021^(e)			816		822	Microsemi Corp, Term Loan B
	PRA Holdings Inc, Term Loan						3.75%, 12/17/2022^(e)		1,305		1,313
	4.50%, 09/18/2020^(e)			4,361		4,380	NXP BV, Term Loan B
	Valeant Pharmaceuticals International Inc,						3.75%, 11/05/2020^(e)		1,600		1,608
	Term Loan BD2						NXP BV, Term Loan D
	5.00%, 02/13/2019^(e)			242		242	3.25%, 01/10/2020^(e)		3,123		3,131
	Valeant Pharmaceuticals International Inc,						ON Semiconductor Corp, Term Loan B
	Term Loan BE1						5.25%, 03/31/2023^(e)		2,750		2,784
	5.25%, 06/26/2020^(e)			4,415		4,407			$		19,529
	Valeant Pharmaceuticals International Inc,						Software - 1.41%
	Term Loan BF1						Blackboard Inc, Term Loan B3
	5.50%, 03/11/2022^(e)			1,251		1,253	4.75%, 10/04/2018^(e)		3,478		3,425
	Vizient Inc, Term Loan B						BMC Software Finance Inc, Term Loan B
	6.25%, 02/09/2023^(e)			748		756	5.00%, 08/07/2020^(e)		5,491		5,235
				$		18,861	Cengage Learning Inc, Term Loan B
	Real Estate - 0.11%						5.25%, 06/07/2023^(e)		3,922		3,915
	Capital Automotive LP, Term Loan						Change Healthcare Holdings Inc, Term Loan
	6.00%, 04/18/2020^(e)			1,861		1,869	B2
	Capital Automotive LP, Term Loan B						3.75%, 11/02/2018^(e)		3,117		3,114
	4.00%, 04/05/2019^(e)			765		767	Compuware Corp, Term Loan B2
	Realogy Group LLC, Term Loan B						6.25%, 12/10/2021^(e)		4,891		4,751
	3.75%, 07/14/2022^(e)			1,514		1,522	First Data Corp, Term Loan B
				$		4,158	4.52%, 03/24/2021^(e)		12,928		12,988
	REITS- 0.22	%					Genesys Telecommunications Laboratories
	Communications Sales & Leasing Inc, Term						Inc, Term Loan
	Loan B						4.50%, 11/04/2020^(e)		1,950		1,945
	5.00%, 10/14/2022^(e)			7,414		7,414	Infor US Inc, Term Loan B5
	Starwood Property Trust Inc, Term Loan B						3.75%, 06/03/2020^(e)		3,126		3,090
	3.50%, 04/17/2020^(e)			717		716	Informatica LLC, Term Loan B
				$		8,130	4.50%, 06/03/2022^(e)		993		958
	Retail - 1.21%						MA FinanceCo LLC, Term Loan B2
							4.50%, 11/20/2021^(e)		348		348
	1011778 BC ULC, Term Loan B2
	3.75%, 12/10/2021^(e)			10,195		10,233	MA FinanceCo LLC, Term Loan C
	Academy Ltd, Term Loan B						4.50%, 10/07/2021^(e)		525		526
	5.00%, 06/16/2022^(e)			1,429		1,394	Magic Newco LLC, Term Loan B
							5.00%, 12/02/2018^(e)		2,181		2,188
	Bass Pro Group LLC, Term Loan B
	4.00%, 06/05/2020^(e)			988		982	Sophia LP, Term Loan B
							4.75%, 09/22/2016^(e)		5,091		5,093
	Belk Inc, Term Loan B
	5.75%, 11/18/2022^(e)			1,990		1,739	SS&C European Holdings SARL, Term Loan
	BJ's Wholesale Club Inc, Term Loan						B2
	8.50%, 03/21/2020^(e)			249		249	4.00%, 06/29/2022^(e)		534		537
	BJ's Wholesale Club Inc, Term Loan B						SS&C Technologies Inc, Term Loan B1
	4.50%, 09/26/2019^(e)			3,430		3,426	4.00%, 06/29/2022^(e)		4,193		4,219
	Dollar Tree Inc, Term Loan B1								$		52,332
	3.50%, 05/26/2022^(e)			3,546		3,552	Telecommunications - 0.53%
	Dollar Tree Inc, Term Loan B2						Avaya Inc, Term Loan B3
	4.18%, 05/26/2022^(e)			1,300		1,316	5.24%, 10/26/2017^(e)		2,259		1,811
	Gymboree Corp/The, Term Loan						Avaya Inc, Term Loan B6
	0.00%, 02/23/2018^(e),(h)			2,250		1,759	6.50%, 03/31/2018^(e)		2,621		2,049
	Hudson's Bay Co, Term Loan B						Avaya Inc, Term Loan B7
	4.75%, 08/12/2022^(e)			1,152		1,154	6.25%, 04/30/2020^(e)		246		184
	Jo-Ann Stores LLC, Term Loan						Cincinnati Bell Inc, Term Loan B
	4.00%, 03/19/2018^(e)			1,846		1,844	4.00%, 08/20/2020^(e)		973		973
	Michaels Stores Inc, Term Loan B						CommScope Inc, Term Loan B
	3.75%, 01/24/2020^(e)			1,032		1,036	3.75%, 12/29/2022^(e)		615		617
	Petco Animal Supplies Inc, Term Loan B1						FairPoint Communications Inc, Term Loan B
	5.00%, 01/15/2023^(e)			3,783		3,814	7.50%, 02/14/2019^(e)		3,872		3,868
	PetSmart Inc, Term Loan B						Intelsat Jackson Holdings SA, Term Loan B2
	4.25%, 03/10/2022^(e)			5,382		5,389	3.75%, 06/30/2019^(e)		2,603		2,469
	Rite Aid Corp, Term Loan 1						T-Mobile USA Inc, Term Loan B
	5.75%, 07/07/2020^(e)			3,500		3,508	3.50%, 11/03/2022^(e)		1,791		1,802

Consolidated Schedule of Investments Diversified Real Asset Fund August 31, 2016


SENIOR FLOATING RATE INTERESTS			Principal
(continued)			Amount (000's)		Value(000	's)
							(a)	Non-Income Producing Security
Telecommunications (continued)
							(b)	Security is Illiquid. At the end of the period, the value of these securities
UPC Financing Partnership, Term Loan AN								totaled $116,416 or 3.13% of net assets.
4.08%, 07/29/2024^(e)		$	6,000	$	5,978

				$	19,751		(c)	Security exempt from registration under Rule 144A of the Securities Act of
								1933. These securities may be resold in transactions exempt from
Transportation - 0.14%								registration, normally to qualified institutional buyers. At the end of the
CEVA Group PLC, SYNTH LOC								period, the value of these securities totaled $45,186 or 1.22% of net assets.
6.50%, 03/19/2021^(e)			371		296
							(d)	Fair value of these investments is determined in good faith by the Manager
CEVA Group PLC, Term Loan								under procedures established and periodically reviewed by the Board of
6.50%, 03/12/2021^(e)			528		421			Directors. At the end of the period, the fair value of these securities totaled
6.50%, 03/19/2021^(e)			66		52			$123 or 0.00% of net assets.

CEVA Intercompany BV, Term Loan							(e)	Variable Rate. Rate shown is in effect at August 31, 2016.
6.50%, 03/19/2021^(e)			383		305
							(f)	Rate shown is the discount rate of the original purchase.
Commercial Barge Line Co, Term Loan B							(g)	Payment in kind; the issuer has the option of paying additional securities
9.75%, 11/06/2020^(e)			988		943			in lieu of cash.

HGIM Corp, Term Loan B							(h)	This Senior Floating Rate Note will settle after August 31, 2016, at which
5.50%, 06/12/2020^(e)			2,188		1,258			time the interest rate will be determined.

XPO Logistics Inc, Term Loan B
5.50%, 10/27/2021^(e)			1,990		1,999		(i)	Security or a portion of the security was pledged to cover margin
								requirements for futures contracts. At the end of the period, the value of
				$	5,274			these securities totaled $20,043 or 0.54% of net assets.
TOTAL SENIOR FLOATING RATE INTERESTS				$	592,133
U.S. GOVERNMENT & GOVERNMENT			Principal
AGENCY OBLIGATIONS - 18.74%			Amount (000's)		Value(000	's)
U.S. Treasury - 2.44%								Portfolio Summary (unaudited)
0.50%, 10/31/2017^(e)		$	10,000	$	10,014		Sector		Percent
0.53%, 04/30/2018^(e)			20,000		20,021		Government		27.40	%
0.61%, 01/31/2018^(e),(i)			21,000		21,045		Energy		14.82	%
0.63%, 11/15/2016			8,000		8,005		Financial		14.29	%
0.88%, 01/31/2017			31,400		31,459		Investment Companies		8.46	%
				$	90,544		Consumer, Non-cyclical		8.30	%
U.S. Treasury Inflation-Indexed Obligations - 16.30%							Industrial		6.44	%
0.13%, 04/15/2018			1,460		1,467		Basic Materials		6.31	%
0.13%, 04/15/2019			48,271		48,699		Utilities		5.15	%
0.13%, 04/15/2020			44,854		45,294		Consumer, Cyclical		4.02	%
0.13%, 04/15/2021			34,674		35,031		Communications		2.86	%
0.13%, 01/15/2022			14,070		14,200		Technology		2.38	%
0.13%, 07/15/2022			20,532		20,763		Diversified		0.60	%
0.13%, 01/15/2023			30,423		30,608		Purchased Options		0.05	%
0.13%, 07/15/2024			40,104		40,281		Purchased Interest Rate Swaptions		0.03	%
0.13%, 07/15/2026			16,577		16,615		Purchased Capped Options		0.00	%
0.25%, 01/15/2025			19,499		19,683		Other Assets and Liabilities		(1.11	)%
0.38%, 07/15/2023			21,630		22,191		TOTAL NET ASSETS		100.00	%
0.38%, 07/15/2025			18,450		18,878
0.63%, 07/15/2021			25,253		26,225
0.63%, 01/15/2024			24,058		25,016
0.63%, 01/15/2026			38,726		40,402
0.63%, 02/15/2043			12,395		12,499
0.75%, 02/15/2042			13,602		14,086
0.75%, 02/15/2045			9,171		9,533
1.00%, 02/15/2046			5,483		6,113
1.13%, 01/15/2021			16,633		17,533
1.25%, 07/15/2020			4,864		5,152
1.38%, 01/15/2020			7,203		7,589
1.38%, 02/15/2044			12,772		15,246
1.75%, 01/15/2028			7,859		9,151
2.00%, 01/15/2026			5,463		6,364
2.13%, 02/15/2040			5,684		7,604
2.13%, 02/15/2041			19,282		26,033
2.38%, 01/15/2025			8,869		10,496
2.38%, 01/15/2027			7,151		8,699
2.50%, 01/15/2029			7,668		9,700
3.38%, 04/15/2032			5,478		8,015
3.63%, 04/15/2028			11,211		15,436
3.88%, 04/15/2029			7,723		11,093
				$	605,695
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS
				$	696,239
TOTAL PURCHASED OPTIONS - 0.05%				$	1,909
TOTAL PURCHASED CAPPED OPTIONS - 0.00%				$	—
TOTAL PURCHASED INTEREST RATE SWAPTIONS -
0.03	%			$	1,178
Total Investments				$	3,757,312
Other Assets and Liabilities - (1.11)%				$	(41,124	)
TOTAL NET ASSETS - 100.00%				$	3,716,188


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016


Foreign Currency Contracts

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For		Fair Value		Asset		Liability
Barclays Bank PLC	10/26/2016	AUD	8,517,105	$	6,461	$	6,391	$	—	$	(70	)
Barclays Bank PLC	10/26/2016	CHF	6,656,733		6,978		6,793		—		(185	)
Barclays Bank PLC	10/26/2016	CLP	2,173,112,600		3,242		3,181		—		(61	)
Barclays Bank PLC	10/26/2016	GBP	4,706,000		6,212		6,186		—		(26	)
Barclays Bank PLC	10/26/2016	JPY	1,378,821,040		13,600		13,360		—		(240	)
Credit Suisse	09/06/2016	EUR	1,900,000		2,159		2,120		—		(39	)
Deutsche Bank AG	09/02/2016	JPY	123,857,452		1,215		1,197		—		(18	)
Deutsche Bank AG	09/06/2016	NZD	1,000,000		729		725		—		(4	)
Deutsche Bank AG	09/09/2016	JPY	246,492,204		2,408		2,383		—		(25	)
Deutsche Bank AG	10/26/2016	BRL	52,306,463		15,940		15,940		71		(71	)
Deutsche Bank AG	10/26/2016	EUR	24,233,000		26,982		27,090		115		(7	)
Deutsche Bank AG	10/26/2016	JPY	1,392,303,235		13,326		13,491		165		—
Deutsche Bank AG	10/26/2016	NOK	56,039,752		6,800		6,729		—		(71	)
Goldman Sachs & Co	09/06/2016	EUR	2,000,000		2,236		2,231		—		(5	)
HSBC Securities Inc	09/26/2016	JPY	104,651,564		1,017		1,013		—		(4	)
JPMorgan Chase	10/26/2016	AUD	3,402		3		3		—		—
JPMorgan Chase	10/26/2016	CAD	8,540,000		6,556		6,515		—		(41	)
JPMorgan Chase	10/26/2016	CHF	25,683,970		26,502		26,208		—		(294	)
JPMorgan Chase	10/26/2016	CLP	8,955,802,500		13,506		13,110		—		(396	)
JPMorgan Chase	10/26/2016	COP	15,895,680,000		5,440		5,296		—		(144	)
JPMorgan Chase	10/26/2016	EUR	96,775,000		107,974		108,185		486		(275	)
JPMorgan Chase	10/26/2016	GBP	12,509,000		16,712		16,443		—		(269	)
JPMorgan Chase	10/26/2016	JPY	6,330,195,355		60,805		61,338		776		(243	)
JPMorgan Chase	10/26/2016	KRW	22,622,720,400		20,296		20,277		100		(119	)
JPMorgan Chase	10/26/2016	MXN	192,729,250		10,300		10,197		13		(116	)
JPMorgan Chase	10/26/2016	NOK	113,247,698		13,607		13,600		91		(98	)
JPMorgan Chase	10/26/2016	NZD	9,070,000		6,582		6,564		—		(18	)
JPMorgan Chase	10/26/2016	RUB	2,142,345,331		32,180		32,344		271		(107	)
JPMorgan Chase	10/26/2016	SEK	116,341,482		13,693		13,632		—		(61	)
JPMorgan Chase	10/26/2016	TRY	16,156,327		5,440		5,400		—		(40	)
JPMorgan Chase	10/26/2016	ZAR	81,208,500		6,000		5,469		—		(531	)
Morgan Stanley & Co	09/06/2016	EUR	6,130,000		6,910		6,839		—		(71	)
Morgan Stanley & Co	09/26/2016	EUR	915,000		1,019		1,022		3		—
Royal Bank of Scotland PLC	09/06/2016	NZD	4,450,000		3,219		3,228		9		—
Total								$	2,100	$	(3,649	)
									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset		Liability
Bank of America NA	09/06/2016	JPY	743,059,000	$	7,106	$	7,183	$	—	$	(77	)
Barclays Bank PLC	10/05/2016	JPY	601,187,500		5,829		5,820		9		—
Barclays Bank PLC	10/26/2016	CHF	6,665,856		6,920		6,802		118		—
Barclays Bank PLC	10/26/2016	EUR	38,802,000		43,504		43,377		186		(59	)
Barclays Bank PLC	10/26/2016	GBP	5,073,000		6,707		6,668		39		—
Barclays Bank PLC	10/26/2016	JPY	2,091,791,237		20,409		20,268		205		(64	)
Barclays Bank PLC	10/26/2016	MXN	63,282,922		3,399		3,348		51		—
Citigroup Inc	09/06/2016	EUR	25,000		28		28		—		—
Citigroup Inc	10/05/2016	NZD	5,009,000		3,623		3,628		—		(5	)
Credit Suisse	09/06/2016	EUR	40,000		45		45		—		—
Deutsche Bank AG	10/26/2016	BRL	35,296,204		10,662		10,756		34		(128	)
Deutsche Bank AG	10/26/2016	EUR	3,242,000		3,601		3,624		—		(23	)
Deutsche Bank AG	10/26/2016	JPY	1,049,326,872		9,939		10,168		—		(229	)
Deutsche Bank AG	10/26/2016	KRW	15,090,560,000		13,600		13,526		74		—
Deutsche Bank AG	10/26/2016	MXN	63,427,024		3,400		3,356		44		—
HSBC Securities Inc	09/09/2016	JPY	306,865,504		3,040		2,967		73		—
HSBC Securities Inc	09/26/2016	EUR	920,000		1,016		1,027		—		(11	)
JPMorgan Chase	10/26/2016	AUD	8,570,000		6,485		6,431		54		—
JPMorgan Chase	10/26/2016	BRL	11,451,231		3,399		3,490		—		(91	)
JPMorgan Chase	10/26/2016	CAD	8,512,393		6,538		6,494		44		—
JPMorgan Chase	10/26/2016	CHF	25,653,323		26,271		26,177		94		—
JPMorgan Chase	10/26/2016	CLP	11,215,952,872		16,998		16,419		579		—
JPMorgan Chase	10/26/2016	EUR	84,833,546		94,481		94,836		27		(382	)
JPMorgan Chase	10/26/2016	GBP	22,391,385		29,523		29,433		244		(154	)
JPMorgan Chase	10/26/2016	JPY	6,700,349,009		64,766		64,925		352		(511	)
JPMorgan Chase	10/26/2016	KRW	7,568,223,160		6,594		6,784		—		(190	)
JPMorgan Chase	10/26/2016	MXN	65,738,402		3,586		3,478		108		—
JPMorgan Chase	10/26/2016	NOK	113,294,782		13,600		13,605		8		(13	)
JPMorgan Chase	10/26/2016	NZD	18,005,000		12,800		13,030		—		(230	)
JPMorgan Chase	10/26/2016	RUB	2,147,829,109		32,421		32,427		184		(190	)
JPMorgan Chase	10/26/2016	SEK	57,873,705		6,800		6,781		19		—
JPMorgan Chase	10/26/2016	TRY	16,129,256		5,430		5,391		39		—
JPMorgan Chase	10/26/2016	ZAR	83,747,041		5,840		5,640		200		—
Morgan Stanley & Co	09/06/2016	JPY	743,059,000		7,099		7,183		—		(84	)
Morgan Stanley & Co	09/26/2016	JPY	104,212,424		1,019		1,008		11		—


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016

Foreign Currency Contracts (continued)

							Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset		Liability
RBC Dominion Securities	10/05/2016	EUR	9,730,000	$	10,854	$	10,868	$	— $		(14	)
Royal Bank of Scotland PLC	09/06/2016	EUR	19,736,000		21,976		22,018		—		(42	)
Standard Chartered Bank, Hong Kong	09/06/2016	NZD	11,029,000		7,826		8,001		—		(175	)
UBS AG	10/05/2016	JPY	601,187,500		5,864		5,820		44		—
Total							$		2,840	$	(2,672	)

Amounts in thousands except contracts

Futures Contracts

											Unrealized
Type	Long/Short		Contracts		Notional Value				Fair Value		Appreciation/(Depreciation)
90 Day Eurodollar; December 2017		Long	252	$	62,392		$		62,294	$	(98	)
90 Day Eurodollar; December 2018		Short	252		62,313				62,216		97
Brent Crude; December 2016		Long	305		14,000				14,417		417
Brent Crude; March 2017		Long	246		12,728				11,934		(794	)
Brent Crude; November 2016		Long	63		3,011				2,954		(57	)
Coffee 'C'; December 2016		Long	143		7,637				7,886		249
Copper; December 2016		Long	413		22,565				21,450		(1,115	)
Corn; December 2016		Long	1,177		20,519				18,567		(1,952	)
Cotton No.2; December 2016		Long	134		4,324				4,394		70
Cotton No.2; July 2017		Long	2		76				66		(10	)
Euro Bund 10 Year Bund; September 2016		Short	50		9,218				9,335		(117	)
Euro-Bobl 5 Year; September 2016		Short	3		444				447		(3	)
Euro-BTP; September 2016		Short	63		9,996				10,225		(229	)
Gasoline RBOB; December 2016		Long	22		1,177				1,213		36
Gasoline RBOB; November 2016		Long	188		10,738				10,443		(295	)
Gold 100 oz; December 2016		Long	294		37,127				38,555		1,428
Japan 10 Year Bond TSE; September 2016		Short	11		16,201				16,097		104
KC HRW Wheat; December 2016		Long	141		3,075				2,802		(273	)
Lean Hogs; December 2016		Long	50		1,257				1,151		(106	)
Lean Hogs; October 2016		Long	188		5,207				4,726		(481	)
Live Cattle; December 2016		Long	19		915				824		(91	)
Live Cattle; June 2017		Long	23		967				932		(35	)
Live Cattle; October 2016		Long	143		6,479				6,096		(383	)
LME Nickel; December 2016		Long	128		6,873				7,507		634
LME PRI Alum; December 2016		Long	353		13,776				14,268		492
LME Zinc; December 2016		Long	137		6,096				7,928		1,832
LME Zinc; December 2017		Long	47		2,645				2,706		61
Natural Gas; January 2017		Long	209		6,863				6,951		88
Natural Gas; November 2016		Long	834		24,425				25,045		620
NY Harb ULSD; November 2016		Long	235		13,830				14,261		431
Silver; December 2016		Long	169		13,745				15,807		2,062
Soybean Meal; December 2016		Long	244		8,585				7,484		(1,101	)
Soybean Meal; March 2017		Long	53		1,968				1,610		(358	)
Soybean Oil; December 2016		Long	446		8,750				8,796		46
Soybean; November 2016		Long	373		19,499				17,587		(1,912	)
Sugar #11; July 2017		Long	107		2,324				2,335		11
Sugar #11; October 2016		Long	528		10,827				11,863		1,036
US 10 Year Note; December 2016		Long	97		12,687				12,700		13
US 10 Year Ultra Note; December 2016		Short	51		7,362				7,363		(1	)
US 2 Year Note; December 2016		Short	249		54,370				54,360		10
US 5 Year Note; December 2016		Long	361		43,721				43,771		50
US Long Bond; December 2016		Short	98		16,674				16,697		(23	)
US Ultra Bond; December 2016		Short	31		5,798				5,811		(13	)
Wheat; December 2016		Long	403		8,779				7,823		(956	)
WTI Crude; December 2016		Short	284		14,054				13,038		1,016
WTI Crude; June 2017		Long	284		14,784				13,785		(999	)
WTI Crude; November 2016		Long	600		26,923				27,186		263
Total									$		(336	)
Amounts in thousands except contracts


Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016


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	Receive	2.07	%	03/10/2018		$	7,960	$	—		$				126		$	126	$	—
	Consumers
	NAS(CPURNSA)
Deutsche Bank AG	Eurostat Eurozone	Pay	1.04	%	01/18/2026		EUR	1,100		—						—			—		—
	HICP Ex Tobacco
	Unrevised Series
	NSA
Deutsche Bank AG	Eurostat Eurozone	Receive	0.76	%	01/18/2021			3,137		—						—			—		—
	HICP Ex Tobacco
	Unrevised Series
	NSA
Deutsche Bank AG	Eurostat Eurozone	Receive	0.77	%	01/18/2021			1,100		—						3			3		—
	HICP Ex Tobacco
	Unrevised Series
	NSA
Deutsche Bank AG	Eurostat Eurozone	Pay	1.18	%	01/18/2026			3,137		—						64			64		—
	HICP Ex Tobacco
	Unrevised Series
	NSA
Deutsche Bank AG	Eurostat Eurozone	Receive	0.74	%	01/18/2021			3,137		—						3			3		—
	HICP Ex Tobacco
	Unrevised Series
	NSA
Deutsche Bank AG	Eurostat Eurozone	Pay	1.18	%	01/18/2026			3,137		—						63			63		—
	HICP Ex Tobacco
	Unrevised Series
	NSA
Total								$		—		$				259		$	259	$	—

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	1.80	%	08/19/2046		$	2,083	$	—		$				(39	)	$			(39	)
	3 Month LIBOR	Receive	1.13	%	02/28/2021		21,300			1						72					73
	3 Month LIBOR	Receive	1.73	%	08/31/2046			2,500		—						(2	)				(2	)
	US Federal Funds	Receive	0.78	%	02/28/2021			6,930		—						12
	Effective Rate
	(continuous series)																				12
Total								$		1		$				43		$			44

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)
Call - 30 Year Interest	Barclays Bank PLC	3 Month	Pay			2.68% 01/13/2021 $				665	$	135	$		180	$					45
Rate Swap		LIBOR
Call - 30 Year Interest	Deutsche Bank AG	3 Month	Pay			2.68% 01/13/2021				2,900		352			781						429
Rate Swap		LIBOR
Put - 30 Year Interest	Barclays Bank PLC	3 Month	Receive			4.00% 11/22/2017				3,100		141			3						(138	)
Rate Swap		LIBOR
Put - 30 Year Interest	Barclays Bank PLC	3 Month	Receive			2.68% 01/13/2021				665		61			40						(21	)
Rate Swap		LIBOR
Put - 30 Year Interest	Deutsche Bank AG	3 Month	Receive			2.68% 01/13/2021				2,900		388			174						(214	)
Rate Swap		LIBOR
Total										$		1,077	$		1,178	$					101

			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 - 2 Year Interest	Barclays Bank PLC	3 Month	Receive			0.90%	06/08/2018			$2,500	$	(13		) $	(11		) $				2
Rate Swap		LIBOR
See accompanying notes.						103


					Consolidated Schedule of Investments
Diversified Real Asset Fund
August 31, 2016


Interest Rate Swaptions (continued)

						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 - 2 Year Interest	Deutsche Bank AG	3 Month			Receive			0.90% 06/08/2018 $						30,200			$		(150	) $	(130)					$	20
Rate Swap		LIBOR
Put - 2 Year Interest	Barclays Bank PLC	3 Month				Pay		1.90% 06/08/2018						2,500					(8	)			(6	)			2
Rate Swap		LIBOR
Put - 2 Year Interest	Deutsche Bank AG	3 Month				Pay		1.90% 06/08/2018						30,200					(128	)			(79	)			49
Rate Swap		LIBOR
Put - 5 Year Interest	Barclays Bank PLC	3 Month				Pay		2.10% 01/13/2017						4,275					(5	)			(2	)			3
Rate Swap		LIBOR
Put - 5 Year Interest	Deutsche Bank AG	3 Month				Pay		2.10% 01/13/2017						18,600					(174	)			(9	)			165
Rate Swap		LIBOR
Put - 5 Year Interest	Deutsche Bank AG	3 Month				Pay		2.10% 01/13/2017						2,790					(20	)			(1	)			19
Rate Swap		LIBOR
Total																$			(498	) $	(238					) $	260

Amounts in thousands


Options

												Upfront Premiums															Unrealized
Purchased Options Outstanding		Exercise Price				Expiration Date			Contracts				Paid/(Received)						Fair Value				Appreciation/(Depreciation)
Call - EUR versus GBP		EUR			0.94	10/10/2016			793,000			$				90		$			—		$				(90	)
Call - EUR versus USD		EUR			1.15	03/09/2017			29,800,000							1,064			498								(566	)
Call - USD versus CAD		$			1.32	11/04/2016			13,290,000							224			175								(49	)
Call - USD versus CAD		$			1.42	11/04/2016			13,290,000							58					10						(48	)
Call - USD versus MXN		$			19.87	11/04/2016			13,290,000							165			100								(65	)
Call - USD versus MXN		$			18.29	11/04/2016			13,290,000							431			575								144
Call - USD versus ZAR		$			15.38	09/05/2016			802,000							76					18						(58	)
Put - 90 Day Eurodollar Future; September 2017 $					98.25	09/19/2016				535						30					4						(26	)
Put - 90 Day Eurodollar Future; September 2017 $					98.75	09/19/2016				535						103					14						(89	)
Put - CHF versus NOK		CHF			8.20	02/20/2017			5,890,000							49					52						3
Put - CHF versus NOK		CHF			8.00	02/15/2017			5,890,000							43					25						(18	)
Put - EUR versus GBP Digital Knockout		EUR			0.73	10/27/2016			500,000							68					—						(68	)
Put - EUR versus GBP Digital Knockout		EUR			0.73	10/27/2016			2,397,000							325					1						(324	)
Put - EUR versus USD		EUR			1.09	11/04/2016			11,700,000							196					58						(138	)
Put - EUR versus USD		EUR			1.02	11/04/2016			11,700,000							44					4						(40	)
Put - GBP versus USD Digital Knockout		$			1.18	11/01/2016			1,087,000							95					14						(81	)
Put - US 10 Year Note Future; December 2016		$		128.50		11/28/2016				434						215			203								(12	)
Put - US Long Bond Future; December 2016		$		168.00		09/26/2016				65						67					56						(11	)
Put - USD versus JPY		$			96.00	02/01/2017			810,000							91					83						(8	)
Put - USD versus MXN		$			17.10	11/01/2016			785,000							78					17						(61	)
Put - USD versus NOK		$			7.70	11/01/2016			810,000							78					2						(76	)
Put - USD versus SEK		$			7.92	11/04/2016			810,000							72					—						(72	)
Total												$				3,662		$	1,909				$				(1,753	)

												Upfront Premiums															Unrealized
Written Options Outstanding		Exercise Price				Expiration Date			Contracts				Paid/(Received)						Fair Value				Appreciation/(Depreciation)
Call - USD versus CAD		$			1.37	11/04/2016			26,575,000			$				(229	)	$			(89	)	$				140
Call - USD versus MXN		$			19.00	11/04/2016			26,575,000							(544	)		(562			)					(18	)
Put - 90 Day Eurodollar Future; September 2016 $					98.88	09/19/2016				628						(93	)		(180			)					(87	)
Put - 90 Day Eurodollar Future; September 2017 $					98.50	09/19/2016				1,103						(94	)				(7	)					87
Put - EUR versus USD		EUR			1.06	11/04/2016			23,400,000							(214	)				(33	)					181
Total												$		(1,174			)	$	(871			)	$				303

Amounts in thousands except contracts


Purchased Capped Options

																Upfront
	Counterparty	Strike						Expiration					Notional			Premiums											Unrealized
Description	(Issuer)	Rate			Floating Rate			Date					Amount			Paid/(Received)						Fair Value					Appreciation/(Depreciation)
Cap - US CPI Urban	Deutsche Bank AG	2.00	%	Max(0, USCPIU-				11/07/2016			$		11,715		$			11	$				—		$		(11	)
Consumers NAS						2	%)
Cap - US CPI Urban	Deutsche Bank AG	2.00	%	Max(0, USCPIU-				11/11/2016					4,695					5					—				(5	)
Consumers NAS						2	%)
Total														$				16	$				—		$		(16	)

Amounts in thousands


Schedule of Investments
Dynamic High Yield Explorer Fund
August 31, 2016



	COMMON STOCKS - 0.12%			Shares Held	Value(000's)						Principal
	Forest Products & Paper - 0.12%								BONDS (continued)	Amount (000's)		Value(000's)
	Verso Corp ^(a)			2,657		$		17	Transportation - 1.55%
									Eletson Holdings Inc
	TOTAL COMMON STOCKS					$		17	9.63%, 01/15/2022^(b)	$	300		$	219
	INVESTMENT COMPANIES - 16.79%			Shares Held		Value(000's)
	Money Market Funds - 14.33%								TOTAL BONDS			$		3,110
	BlackRock Liquidity Funds FedFund Portfolio			2,030,364				2,030	SENIOR FLOATING RATE INTERESTS -		Principal
									71.48%	Amount (000's)		Value(000's)
	Exchange Traded Funds - 2.46%								Aerospace & Defense - 1.62%
	PowerShares Senior Loan Portfolio			15,000				349	B/E Aerospace Inc, Term Loan B
									3.75%, 12/16/2021^(c)	$	228	$		230
	TOTAL INVESTMENT COMPANIES					$		2,379
				Principal					Automobile Manufacturers - 0.69%
	BONDS- 21.96	%		Amount (000's)		Value(000's)			Navistar Inc, Term Loan B
									6.50%, 08/06/2020^(c)		104			98
	Banks- 0.95	%
	Popular Inc
	7.00%, 07/01/2019		$	130			$	134	Chemicals - 5.77%
									A Schulman Inc, Term Loan B
									4.19%, 05/11/2022^(c)		133			133
	Chemicals - 0.95%
	Consolidated Energy Finance SA								Aruba Investments Inc, Term Loan B
	6.75%, 10/15/2019^(b)			140				135	4.50%, 02/02/2022^(c)		69			69
									Emerald Performance Materials LLC, Term
	Diversified Financial Services - 0.90%								Loan
									7.75%, 07/22/2022^(c)		265			259
	Navient Corp
	5.88%, 03/25/2021			125				127	Ineos US Finance LLC, Term Loan B
									3.75%, 12/15/2020^(c)		210			210
									Methanol Holdings Trinidad Ltd, Term Loan
	Healthcare - Products - 0.78%								B
	Universal Hospital Services Inc								4.25%, 06/16/2022^(c)		149			146
	7.63%, 08/15/2020			115				110
												$		817
	Insurance - 1.52%								Consumer Products - 1.45%
	Voya Financial Inc								Dell International LLC, Term Loan B
	5.65%, 05/15/2053^(c)			215				215	0.00%, 06/02/2023^(c),(f)		205			206

	Media- 1.08	%							Diversified Financial Services - 1.91%
	WideOpenWest Finance LLC /								Delos Finance Sarl, Term Loan B
	WideOpenWest Capital Corp								3.50%, 02/26/2021^(c)		270			271
	10.25%, 07/15/2019 ^(d)			145				153
									Electric - 1.16%
	Metal Fabrication & Hardware - 2.22%								Dynegy Inc, Term Loan C
	Wise Metals Intermediate Holdings LLC/Wise								5.00%, 06/22/2023^(c)		165			165
	Holdings Finance Corp
	9.75%, PIK 10.50%, 06/15/2019 ^(b),(e)			379				315	Entertainment - 5.44%
									CCM Merger Inc, Term Loan B
									4.50%, 07/30/2021^(c)		190			191
	Mining - 1.09%
	Teck Resources Ltd								Eldorado Resorts Inc, Term Loan B
	3.75%, 02/01/2023			180				154	4.25%, 07/15/2022^(c)		202			202
									Lions Gate Entertainment Corp, Term Loan
	Oil & Gas - 4.91%								B
	Continental Resources Inc/OK								5.00%, 03/11/2022^(c)		270			274
	4.50%, 04/15/2023			180				170	WMG Acquisition Corp, Term Loan B
	Halcon Resources Corp								3.75%, 07/07/2020^(c)		104			104
	8.63%, 02/01/2020^(b)			255				242				$		771
	QEP Resources Inc								Food- 4.19%
	6.80%, 04/01/2018			95				96	B&G Foods Inc, Term Loan B
	Whiting Petroleum Corp								3.75%, 10/21/2022^(c)		303			304
	5.75%, 03/15/2021			210				188	JBS USA LLC, Term Loan B
						$		696	4.00%, 08/18/2022^(c)		139			139
	Pipelines - 0.26%								Pinnacle Foods Finance LLC, Term Loan I
	Tesoro Logistics LP / Tesoro Logistics								3.27%, 01/13/2023^(c)		149			150
	Finance Corp											$		593
	6.38%, 05/01/2024			35				37	Forest Products & Paper - 1.48%
									Caraustar Industries Inc, Term Loan B
	Retail - 0.93%								8.00%, 05/01/2019^(c)		208			209
	Landry's Holdings II Inc
	10.25%, 01/01/2018 ^(b)			130				132	Healthcare - Products - 3.09%
									Kinetic Concepts Inc, Term Loan F1
	Telecommunications - 4.82%								5.00%, 11/04/2020^(c)		208			209
	Frontier Communications Corp								Mallinckrodt International Finance SA, Term
	11.00%, 09/15/2025			165				178	Loan B
	Wind Acquisition Finance SA								3.25%, 03/19/2021^(c)		228			228
	4.75%, 07/15/2020^(b)			295				299				$		437
	7.38%, 04/23/2021^(b)			200				206
						$		683


Schedule of Investments
Dynamic High Yield Explorer Fund
August 31, 2016



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS			Principal
	(continued)			Amount (000's)		Value (000's)	(continued)		Amount (000's)		Value (000's)
	Healthcare - Services - 6.14%						Pharmaceuticals (continued)
	Acadia Healthcare Co Inc, Term Loan B2						Endo Luxembourg Finance Co I Sarl, Term
	4.50%, 02/04/2023^(c)		$	294	$	295	Loan B
	Lantheus Medical Imaging Inc, Term Loan B							3.75%, 06/24/2022^(c)	$	134	$	133
	0.00%, 06/24/2022^(c),(f)			187		178	Grifols Worldwide Operations USA Inc, Term
	MPH Acquisition Holdings LLC, Term Loan						Loan B
	B							3.44%, 03/05/2021^(c)		171		173
	5.00%, 05/25/2023^(c)			280		283	Valeant Pharmaceuticals International Inc,
	Radnet Management Inc, Term Loan B						Term Loan BD2
	4.77%, 06/30/2023^(c)			115		114		5.00%, 02/13/2019^(c)		194		194
				$		870	Valeant Pharmaceuticals International Inc,
	Insurance - 2.32%						Term Loan BF1
	Asurion LLC, Term Loan							5.50%, 04/01/2022^(c)		95		95
	8.50%, 02/19/2021^(c)			85		85					$	741
	Lonestar Intermediate Super Holdings LLC,						REITS - 2.89%
	PIK Term Loan						iStar Inc, Term Loan B
	0.00%, PIK 0.75%, 08/10/2021^(c),(e),(f)			245		244		5.50%, 07/01/2020^(c)		266		268
				$		329	MGM Growth Properties Operating
	Internet - 0.99%						Partnership LP, Term Loan B
	Zayo Group LLC, Term Loan B							4.00%, 04/07/2023^(c)		140		141
	0.00%, 05/06/2021^(c),(f)			140		140					$	409
							Retail - 7.43%
	Investment Companies - 1.33%						Academy Ltd, Term Loan B
	Frank Russell Co, Term Loan B							5.00%, 06/16/2022^(c)		105		103
	6.75%, 05/10/2023^(c)			200		188	Dollar Tree Inc, Term Loan B2
								4.18%, 07/06/2022^(c)		205		207
	Lodging - 0.92%						JC Penney Corp Inc, Term Loan B
	Hilton Worldwide Finance LLC, Term Loan							5.25%, 06/09/2023^(c)		160		161
	B1						KFC Holding Co, Term Loan B
	3.50%, 09/23/2020^(c)			12		12		3.26%, 06/02/2023^(c)		205		206
	Hilton Worldwide Finance LLC, Term Loan						Michaels Stores Inc, Term Loan B2
	B2							4.00%, 01/20/2028^(c)		132		133
	3.10%, 10/25/2023^(c)			118		119	PetSmart Inc, Term Loan B
				$		131		4.25%, 03/11/2022^(c)		243		243
	Media- 2.24	%									$	1,053
	SFR Group SA, Term Loan B						Semiconductors - 3.23%
	5.00%, 01/08/2024^(c)			170		170	Avago Technologies Cayman Finance Ltd,
	Univision Communications Inc, Term Loan						Term Loan B3
	C4							3.51%, 02/01/2023^(c)		279		282
	4.00%, 03/01/2020^(c)			147		147	NXP BV, Term Loan B
				$		317		3.75%, 11/05/2020^(c)		174		175
	Mining - 2.26%										$	457
	FMG Resources August 2006 Pty Ltd, Term						Software - 0.67%
	Loan B						Evergreen Skills Lux Sarl, Term Loan
	3.75%, 06/30/2019^(c)			322		320		3.75%, 04/08/2021^(c)		95		95

	Oil & Gas - 4.06%						TOTAL SENIOR FLOATING RATE INTERESTS				$	10,126
	California Resources Corp, Term Loan						Total Investments				$	15,632
	0.00%, 12/31/2021^(c),(f)			30		31	Other Assets and Liabilities - (10.35)%				$	(1,466	)
	Chesapeake Energy Corp, Term Loan						TOTAL NET ASSETS - 100.00%				$	14,166
	0.00%, 08/17/2021^(c),(f)			310		320
	Drillships Financing Holding Inc, Term Loan						(a)	Non-Income Producing Security
	B1						(b)	Security exempt from registration under Rule 144A of the Securities Act of
	6.00%, 03/31/2021^(c)			111		51		1933. These securities may be resold in transactions exempt from
	EP Energy LLC							registration, normally to qualified institutional buyers. At the end of the
	9.75%, 06/30/2021^(c)			135		133		period, the value of these securities totaled $1,548 or 10.93% of net assets.
	Seadrill Operating LP, Term Loan B						(c)	Variable Rate. Rate shown is in effect at August 31, 2016.
	4.00%, 02/12/2021^(c)			83		40	(d)	Security is Illiquid. At the end of the period, the value of these securities
								totaled $153 or 1.08% of net assets.
				$		575
							(e)	Payment in kind; the issuer has the option of paying additional securities
	Oil & Gas Services - 2.44%							in lieu of cash.

	Navios Maritime Midstream Partners LP,						(f)	This Senior Floating Rate Note will settle after August 31, 2016, at which
	Term Loan B							time the interest rate will be determined.
	5.50%, 06/15/2020^(c)			356		346

	Packaging & Containers - 2.53%
	Berry Plastics Group Inc, Term Loan H
	3.75%, 10/01/2022^(c)			193		193
	Coveris Holdings SA, Term Loan B
	0.00%, 05/08/2019^(c),(f)			165		165
				$		358
	Pharmaceuticals - 5.23%
	DPx Holdings BV, Term Loan B
	4.25%, 01/22/2021^(c)			147		146


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS - 38.66%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.04%					Automobile Parts & Equipment (continued)
Gendai Agency Inc	6,600	$	37		Toyoda Gosei Co Ltd	21,800	$	503
Interpublic Group of Cos Inc/The ^(a)	35,825		829		Toyota Industries Corp	2,965		142
Relia Inc	11,300		107				$	13,699
		$	973		Banks - 1.83%
Aerospace & Defense - 0.37%					ABN AMRO Group NV ^(c)	8,541		176
AAR Corp ^(a)	21,210		522		Banca Monte dei Paschi di Siena SpA ^(b)	311,057		84
Cobham PLC	583,785		1,239		Banco Bilbao Vizcaya Argentaria SA	5,668		35
General Dynamics Corp ^(a)	10,420		1,586		Banco Popolare SC	22,375		56
Harris Corp ^(a)	4,870		453		Banco Santander SA	11,728		53
IHI Corp	193,630		593		Bank of America Corp	258,274		4,169
Jamco Corp	5,700		106		Bank of New York Mellon Corp/The ^(a)	46,080		1,920
Leonardo-Finmeccanica SpA ^(b)	104,446		1,192		Bankinter SA	29,371		216
Lockheed Martin Corp	6,513		1,583		BNP Paribas SA	22,869		1,168
MTU Aero Engines AG	813		83		Cardinal Financial Corp	2,562		69
Rockwell Collins Inc ^(a)	6,978		584		Citigroup Inc	120,358		5,746
Saab AB	2,337		80		Commerzbank AG	44,658		313
TransDigm Group Inc ^(b)	3,202		913		Cullen/Frost Bankers Inc	3,035		221
Triumph Group Inc ^(a)	10,920		348		Danske Bank A/S	8,833		259
Ultra Electronics Holdings PLC	35,609		790		Eighteenth Bank Ltd/The	16,000		49
		$	10,072		Eurobank Ergasias SA ^(b)	143,963		86
					Fifth Third Bancorp ^(a)	115,020		2,319
Agriculture - 0.19%
Altria Group Inc ^(a)	14,940		987		First Citizens BancShares Inc/NC	2,032		579
					First Midwest Bancorp Inc/IL ^(a)	46,011		900
Archer-Daniels-Midland Co	20,660		904
					First NBC Bank Holding Co ^(b)	7,828		102
Japan Tobacco Inc	3,750		145
Philip Morris International Inc ^(a)	26,450		2,643		First Republic Bank/CA	15,968		1,229
Swedish Match AB	16,748		597		Goldman Sachs Group Inc/The	20,261		3,433
					Hope Bancorp Inc ^(a)	100,766		1,733
		$	5,276
					Huntington Bancshares Inc/OH ^(a)	1,897		19
Airlines - 0.11%
American Airlines Group Inc ^(a)	17,473		634		Intesa Sanpaolo SpA	69,252		165
Delta Air Lines Inc	12,442		457		Jyske Bank A/S	1,057		51
SkyWest Inc ^(a)	14,773		417		KBC Group NV	1,611		96
Spirit Airlines Inc ^(b)	22,759		910		M&T Bank Corp	28,469		3,369
United Continental Holdings Inc ^(b)	7,094		358		Mediobanca SpA	48,415		360
Virgin America Inc ^(b)	5,429		303		Mitsubishi UFJ Financial Group Inc	334,458		1,842
		$	3,079		Mizuho Financial Group Inc	484,200		844
					Morgan Stanley	90,707		2,908
Apparel - 0.16%					OFG Bancorp ^(a)	44,909		490
Adidas AG	450		75
					Oita Bank Ltd/The	35,000		114
Moncler SpA	4,534		75		PNC Financial Services Group Inc/The ^(a)	62,852		5,663
NIKE Inc	55,952		3,225
Ralph Lauren Corp ^(a)	9,888		1,025		PrivateBancorp Inc	13,216		607
					Prosperity Bancshares Inc ^(a)	7,440		413
Sanyo Shokai Ltd	81,000		128		Regions Financial Corp ^(a)	47,480		473
		$	4,528
					Shinsei Bank Ltd	163,000		260
Automobile Manufacturers - 0.33%					State Street Corp ^(a)	20,190		1,418
Fiat Chrysler Automobiles NV	72,455		501
Ford Motor Co ^(a)	189,930		2,393		Sumitomo Mitsui Financial Group Inc	30,200		1,056
					Synovus Financial Corp ^(a)	22,960		760
General Motors Co ^(a)	54,060		1,726
					Talmer Bancorp Inc	23,323		542
Hino Motors Ltd	40,430		449		TCF Financial Corp ^(a)	39,990		586
Honda Motor Co Ltd	40,000		1,232		Texas Capital Bancshares Inc ^(a),(b)	14,930		784
Isuzu Motors Ltd	10,310		119		Tochigi Bank Ltd/The	26,000		104
Mitsubishi Motors Corp	70,800		324		Tokyo TY Financial Group Inc	8,023		236
Nissan Motor Co Ltd	31,600		310		UBS Group AG	78,403		1,136
PACCAR Inc	28,393		1,699		US Bancorp ^(a)	8,610		380
Suzuki Motor Corp	6,250		208		Wells Fargo & Co ^(a)	6,183		314
		$	8,961		Yadkin Financial Corp	14,229		371
Automobile Parts & Equipment - 0.50%					Yamanashi Chuo Bank Ltd/The	28,000		118
Aisan Industry Co Ltd	25,400		197				$	50,394
Allison Transmission Holdings Inc	55,325		1,535
					Beverages - 0.75%
Daikyonishikawa Corp	30,080		323		Carlsberg A/S	2,042		192
Delphi Automotive PLC	34,324		2,425		Coca-Cola Co/The ^(a)	133,923		5,816
Exedy Corp	14,500		360		Coca-Cola European Partners PLC	29,181		1,122
Georg Fischer AG	150		121		Davide Campari-Milano SpA	4,400		48
Hella KGaA Hueck & Co	5,161		209		Dr Pepper Snapple Group Inc ^(a)	9,042		847
Keihin Corp	27,000		415
Mobileye NV ^(b)	38,111		1,863		Heineken NV	64,170		5,747
Motorcar Parts of America Inc ^(a),(b)	13,510		384		Molson Coors Brewing Co	8,404		860
					Monster Beverage Corp ^(b)	23,147		3,562
NGK Insulators Ltd	13,340		290		PepsiCo Inc ^(a)	24,064		2,569
NGK Spark Plug Co Ltd	34,580		649
							$	20,763
Nissin Kogyo Co Ltd	24,100		351
					Biotechnology - 0.93%
NOK Corp	24,900		507		Alder Biopharmaceuticals Inc ^(b)	9,859		325
Rheinmetall AG	19,341		1,396		Alexion Pharmaceuticals Inc ^(b)	3,220		405
Sumitomo Electric Industries Ltd	20,300		302		Amgen Inc ^(a)	5,260		895
Tokai Rika Co Ltd	30,200		599		Biogen Inc ^(b),(d)	5,730		1,751
Toyo Tire & Rubber Co Ltd	79,830		1,128


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Biotechnology (continued)					Commercial Services (continued)
Coherus Biosciences Inc ^(b)	15,219	$	453		Aramark	13,105	$	497
Genmab A/S ^(b)	69		11		Atlantia SpA	2,913		75
Medivation Inc ^(b)	232,924		18,764		Automatic Data Processing Inc	17,417		1,564
Novavax Inc ^(b)	23,200		159		Benefit One Inc	3,187		93
Regeneron Pharmaceuticals Inc ^(b)	4,348		1,707		Benesse Holdings Inc	13,900		321
Senseonics Holdings Inc ^(b)	107,369		429		CDI Corp ^(a)	9,595		55
Vertex Pharmaceuticals Inc ^(a),(b)	8,590		812		Cintas Corp	9,236		1,085
		$	25,711		CoStar Group Inc ^(b)	15,572		3,227
Building Materials - 0.70%					Equifax Inc ^(a)	6,460		852
BRAAS Monier Building Group SA	44,968		1,062		FreakOut Inc ^(b)	400		13
Builders FirstSource Inc ^(b)	23,625		325		Gartner Inc ^(a),(b)	10,250		933
Cie de Saint-Gobain	35,527		1,559		Global Payments Inc	10,515		799
CRH PLC	54,427		1,829		H&R Block Inc	27,050		586
Headwaters Inc ^(b)	39,597		718		HealthEquity Inc ^(a),(b)	26,720		870
HeidelbergCement AG ^(a)	1,332		124		Hertz Global Holdings Inc ^(b)	68,455		3,372
Ibstock PLC ^(c)	317,688		762		IHS Markit Ltd ^(b)	74,289		2,772
Italcementi SpA ^(b)	77,050		909		ISS A/S	7,615		308
LafargeHolcim Ltd ^(b)	27,595		1,465		Kyoritsu Maintenance Co Ltd	4,050		264
Lennox International Inc	18,848		3,036		LifeLock Inc ^(b)	16,790		279
Louisiana-Pacific Corp ^(b)	143,757		2,800		Macquarie Infrastructure Corp	44,648		3,569
Nibe Industrier AB	1,430		13		MarketAxess Holdings Inc	3,131		528
Norbord Inc ^(e)	113,441		2,725		Moody's Corp	5,107		555
Sanwa Holdings Corp	27,100		241		Nielsen Holdings PLC ^(a)	35,110		1,871
Sika AG	87		415		Outsourcing Inc	1,200		45
Taiheiyo Cement Corp	64,000		194		Prosegur Cia de Seguridad SA	12,388		83
Wienerberger AG	75,422		1,199		QinetiQ Group PLC	202,203		613
		$	19,376		Randstad Holding NV	3,906		185
Chemicals - 2.05%					Recruit Holdings Co Ltd	5,100		194
Air Products & Chemicals Inc	53,382		8,307		Robert Half International Inc	14,590		559
Akzo Nobel NV ^(a)	51,639		3,481		S&P Global Inc ^(d)	7,790		962
Ashland Inc ^(a)	14,723		1,724		Service Corp International/US ^(a)	74,920		1,981
Brenntag AG ^(a)	3,934		214		TechnoPro Holdings Inc	17,274		562
CF Industries Holdings Inc	178,334		4,636		Temp Holdings Co Ltd	12,500		200
Clariant AG ^(b)	4,355		76		Total System Services Inc ^(a)	29,460		1,451
Covestro AG ^(c)	3,806		198		Western Union Co/The	132,730		2,856
Denka Co Ltd	20,000		85				$	34,757
Dow Chemical Co/The	32,645		1,751		Computers - 1.65%
Eastman Chemical Co ^(a)	9,930		674		Accenture PLC - Class A	17,243		1,983
Evonik Industries AG	5,045		169		Apple Inc	34,910		3,704
Fujimi Inc	6,100		81		Bell System24 Holdings Inc	16,800		137
Givaudan SA	73		151		Cadence Design Systems Inc ^(b)	30,002		763
Hitachi Chemical Co Ltd	16,400		354		Computer Sciences Corp	14,630		688
International Flavors & Fragrances Inc ^(a)	8,670		1,201		CSRA Inc ^(a)	47,928		1,217
JSR Corp	52,800		773		Diebold Inc	5,691		160
Koninklijke DSM NV	883		62		EMC Corp ^(a)	692,411		20,073
LANXESS AG	3,230		172		Ferrotec Corp	24,700		326
Linde AG	44		7		Fleetmatics Group PLC ^(b)	9,542		571
Lonza Group AG ^(b)	4,418		838		Fujitsu Ltd	334,495		1,703
Mitsui Chemicals Inc	84,417		405		Hewlett Packard Enterprise Co ^(a)	119,087		2,558
Monsanto Co	56,362		6,003		International Business Machines Corp ^(a)	23,633		3,755
Mosaic Co/The	66,170		1,990		Itochu Techno-Solutions Corp	9,400		230
Nippon Shokubai Co Ltd	4,360		268		Japan Digital Laboratory Co Ltd	10,500		149
Nissan Chemical Industries Ltd	4,577		141		Lexmark International Inc	11,968		429
Nitto Denko Corp	5,300		362		Lumentum Holdings Inc ^(a),(b)	29,084		1,021
Platform Specialty Products Corp ^(b)	165,268		1,496		Melco Holdings Inc	10,500		251
PPG Industries Inc ^(a)	8,840		936		NET One Systems Co Ltd	47,500		323
Praxair Inc ^(a),(d)	24,837		3,031		NetApp Inc ^(a)	38,960		1,348
RPM International Inc ^(a)	22,180		1,209		Obic Co Ltd	950		49
Sherwin-Williams Co/The ^(a)	8,490		2,409		Otsuka Corp	8,242		350
Shin-Etsu Chemical Co Ltd	3,299		242		Pure Storage Inc ^(b)	1,056		12
Sumitomo Bakelite Co Ltd	58,720		292		Qualys Inc ^(a),(b)	12,690		436
Sumitomo Chemical Co Ltd	25,000		115		SCSK Corp	18,040		664
Syngenta AG ^(b)	3,438		1,498		Seagate Technology PLC	43,330		1,462
Syngenta AG	19,823		8,654		Teradata Corp ^(b)	33,490		1,063
Teijin Ltd	30,000		112				$	45,425
Tokyo Ohka Kogyo Co Ltd	5,700		180		Consumer Products - 0.25%
Umicore SA	2,905		172		Avery Dennison Corp ^(a)	8,840		684
Valspar Corp/The	16,288		1,717		Church & Dwight Co Inc ^(a)	15,577		1,549
Yara International ASA	6,288		223		Clorox Co/The ^(a)	15,710		2,058
		$	56,409		Kimberly-Clark Corp ^(a)	18,950		2,427
Commercial Services - 1.26%					Reckitt Benckiser Group PLC	2,006		194
Adecco Group AG	3,066		177				$	6,912
Apollo Education Group Inc ^(b)	45,204		401


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Cosmetics & Personal Care - 0.32%					Electric (continued)
Ci:z Holdings Co Ltd	7,800	$	199		Westar Energy Inc ^(a)	25,764	$	1,415
Colgate-Palmolive Co ^(a)	68,727		5,109				$	17,704
Estee Lauder Cos Inc/The	4,361		389		Electrical Components & Equipment - 0.28%
Kao Corp	3,420		178		AMETEK Inc ^(a)	20,030		977
Kose Corp	1,210		109		Funai Electric Co Ltd	28,800		227
Lion Corp	14,463		202		Gamesa Corp Tecnologica SA	20,727		476
Procter & Gamble Co/The ^(a)	23,589		2,059		Generac Holdings Inc ^(b)	59,578		2,222
Svenska Cellulosa AB SCA	13,521		416		Legrand SA	15,761		947
Unicharm Corp	4,550		111		Nissin Electric Co Ltd	11,942		186
		$	8,772		OSRAM Licht AG	9,672		505
Distribution & Wholesale - 0.08%					Prysmian SpA	11,206		277
Fastenal Co	22,923		988		Schneider Electric SE	13,400		914
Ingram Micro Inc	10,205		357		SunPower Corp ^(b)	46,626		464
ITOCHU Corp	11,900		141		Ushio Inc	23,400		261
Nippon Gas Co Ltd	3,442		96		W-Scope Corp	11,200		175
Trusco Nakayama Corp	8,100		372		Zumtobel Group AG	4,475		73
Yondoshi Holdings Inc	7,900		168				$	7,704
		$	2,122		Electronics - 0.70%
Diversified Financial Services - 0.76%					Agilent Technologies Inc	8,320		391
Alliance Data Systems Corp ^(a),(b)	6,759		1,382		Allegion PLC ^(a)	36,302		2,585
American Express Co	43,960		2,883		Alps Electric Co Ltd	24,700		559
Blackhawk Network Holdings Inc ^(b)	10,096		346		Brady Corp	18,730		627
BlackRock Inc	5,319		1,983		Coherent Inc ^(b)	2,685		282
CME Group Inc ^(a)	7,500		813		Corning Inc	16,030		364
Element Comm Aviation ^(b),(e),(f)	280		2,765		FEI Co	6,192		659
Franklin Resources Inc	11,480		419		Fortive Corp ^(a)	10,525		554
GAM Holding AG ^(b)	13,054		127		Gentex Corp ^(a)	88,535		1,575
Greenhill & Co Inc	44,310		1,016		Hitachi High-Technologies Corp	5,350		198
Hellenic Exchanges - Athens Stock Exchange	137,894		668		Honeywell International Inc	19,671		2,296
SA					Horiba Ltd	2,600		121
Ichigo Inc	46,800		191		Hosiden Corp	39,200		294
Japan Exchange Group Inc	25,400		398		Japan Aviation Electronics Industry Ltd	9,715		151
Julius Baer Group Ltd ^(b)	22,481		943		Keyence Corp	502		352
Kenedix Inc	68,900		317		Keysight Technologies Inc ^(b)	15,660		477
Legg Mason Inc ^(a)	27,860		964		Koninklijke Philips NV	1,581		46
LendingClub Corp ^(b)	53,560		290		Kuroda Electric Co Ltd	16,600		312
Mitsubishi UFJ Lease & Finance Co Ltd	19,400		91		Kyocera Corp	3,630		173
NorthStar Asset Management Group Inc	18,144		225		Minebea Co Ltd	22,100		225
Partners Group Holding AG	378		173		Mitsumi Electric Co Ltd ^(b)	13,800		86
Santander Consumer USA Holdings Inc ^(b)	3,822		48		Nichicon Corp	43,100		351
SEI Investments Co ^(a),(d)	19,960		920		Nippon Ceramic Co Ltd	10,900		205
Synchrony Financial	14,109		393		Rofin-Sinar Technologies Inc ^(b)	14,066		450
Virtus Investment Partners Inc ^(a)	4,350		397		SCREEN Holdings Co Ltd	11,000		143
Visa Inc	32,278		2,611		Siix Corp	2,377		90
Zenkoku Hosho Co Ltd	11,780		463		TokyoSeimitsuCoLtd	18,400		490
		$	20,826		Trimble Navigation Ltd ^(a),(b)	40,521		1,110
Electric - 0.64%					Tyco International Plc	57,382		2,506
A2A SpA	324,473		431		Waters Corp ^(a),(b)	10,820		1,702
AES Corp/VA	24,240		292				$	19,374
Ameren Corp ^(a)	7,000		346		Energy - Alternate Sources - 0.04%
American Electric Power Co Inc ^(a)	9,848		636		First Solar Inc ^(b)	17,918		678
Avangrid Inc	16,622		691		Pattern Energy Group Inc	5,711		136
Calpine Corp ^(b)	34,829		435		Vestas Wind Systems A/S	3,764		312
DTE Energy Co ^(a)	17,590		1,634				$	1,126
Duke Energy Corp ^(a)	14,790		1,178		Engineering & Construction - 0.28%
Empire District Electric Co/The	19,801		670		Abengoa SA ^(b)	410,719		91
Endesa SA ^(a)	16,390		334		ACS Actividades de Construccion y Servicios	7,943		225
Enel SpA	123,496		546		SA ^(a)
Entergy Corp ^(a)	20,003		1,564		Balfour Beatty PLC ^(b)	199,405		740
eRex Co Ltd	3,400		86		Boskalis Westminster	4,094		147
FirstEnergy Corp ^(a)	23,870		781		Ferrovial SA ^(a)	3,508		69
Hawaiian Electric Industries Inc ^(a)	18,864		566		Flughafen Zuerich AG	2,585		478
Hera SpA	17,737		49		Fluor Corp ^(a)	23,120		1,200
Iberdrola SA	14,520		96		HOCHTIEF AG	2,329		313
ITC Holdings Corp ^(a)	30,935		1,399		KBR Inc ^(a)	41,850		614
NRG Energy Inc	48,610		589		Kyudenko Corp	26,413		835
PG&E Corp ^(a)	8,810		546		NCC AB	6,383		159
PPL Corp	16,610		578		Nippon Densetsu Kogyo Co Ltd	9,700		183
Red Electrica Corp SA	8,712		188		Skanska AB	17,401		381
Southern Co/The ^(a)	44,090		2,263		Taisei Corp	17,738		133
Talen Energy Corp ^(b)	22,538		311		Tecnicas Reunidas SA	2,280		82
Terna Rete Elettrica Nazionale SpA	15,408		80		Tokyu Construction Co Ltd	17,600		172
					Toshiba Plant Systems & Services Corp	16,300		256


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Engineering & Construction (continued)					Hand & Machine Tools - 0.16%
Toyo Engineering Corp	113,000	$	349		Disco Corp	2,330	$	263
Vinci SA	15,839		1,203		DMG Mori Co Ltd	8,200		91
		$	7,630		KUKA AG ^(b)	5,811		689
Entertainment - 0.06%					Makita Corp	2,459		177
Avex Group Holdings Inc	12,900		167		Schindler Holding AG	78		15
Carmike Cinemas Inc ^(b)	9,523		306		Snap-on Inc ^(a)	3,840		588
OPAP SA	87,243		732		Stanley Black & Decker Inc ^(a)	19,918		2,465
Sankyo Co Ltd	1,900		66				$	4,288
Sega Sammy Holdings Inc	10,177		139		Healthcare - Products - 1.22%
Whistler Blackcomb Holdings Inc	11,369		325		Abbott Laboratories ^(a)	42,540		1,788
		$	1,735		ABIOMED Inc ^(b)	6,500		767
Environmental Control - 0.23%					Alere Inc ^(b)	23,806		931
Clean Harbors Inc ^(b)	46,707		2,233		Align Technology Inc ^(b)	26,237		2,437
Daiseki Co Ltd	3,500		61		Asahi Intecc Co Ltd	6,627		295
METAWATER Co Ltd	3,100		88		Baxter International Inc ^(a)	33,958		1,587
Republic Services Inc ^(a)	24,938		1,260		Becton Dickinson and Co ^(a)	21,613		3,830
Waste Connections Inc	3,225		246		Boston Scientific Corp ^(b)	15,376		366
Waste Management Inc ^(a)	38,750		2,478		Danaher Corp ^(a)	19,810		1,613
		$	6,366		Edwards Lifesciences Corp ^(b)	6,065		698
Food - 1.18%					Elekta AB	4,551		39
Ariake Japan Co Ltd	3,234		153		Getinge AB	4,037		79
Aryzta AG ^(b)	119		5		Hologic Inc ^(a),(b)	120,834		4,642
					Intuitive Surgical Inc ^(a),(b)	5,695		3,909
Belc Co Ltd	4,417		165
Campbell Soup Co ^(a)	18,339		1,114		Medtronic PLC ^(a)	45,031		3,919
ConAgra Foods Inc	28,014		1,306		Nipro Corp	6,642		83
Ebro Foods SA	12,216		273		Olympus Corp	9,710		318
					ResMed Inc ^(a)	8,660		578
Ezaki Glico Co Ltd	1,130		57
General Mills Inc ^(a)	43,710		3,096		St Jude Medical Inc	21,266		1,657
Greencore Group PLC	44,279		204		Straumann Holding AG	504		196
Hershey Co/The ^(a)	52,851		5,279		Stryker Corp ^(a)	13,150		1,521
Ingredion Inc ^(a)	3,000		411		Sysmex Corp	1,432		92
Itoham Yonekyu Holdings Inc ^(b)	46,600		441		Terumo Corp	2,166		84
					Thermo Fisher Scientific Inc ^(a)	6,910		1,052
Jeronimo Martins SGPS SA	1,174		19
Kellogg Co ^(a)	39,579		3,254		Varian Medical Systems Inc ^(a),(b)	11,071		1,064
Kesko OYJ	12,053		524				$	33,545
Kikkoman Corp	2,810		88		Healthcare - Services - 0.58%
Koninklijke Ahold Delhaize NV ^(b)	8,346		200		Acadia Healthcare Co Inc ^(b)	14,052		719
Megmilk Snow Brand Co Ltd	2,789		86		Ain Holdings Inc	4,850		276
MEIJI Holdings Co Ltd	2,412		217		BioMerieux	1,690		258
METRO AG	5,563		165		Cigna Corp ^(a)	16,354		2,098
Mondelez International Inc	35,219		1,586		CMIC Holdings Co Ltd	10,200		148
Morinaga & Co Ltd/Japan	54,777		442		DaVita Inc ^(a),(b)	17,980		1,162
Nomad Foods Ltd ^(b)	63,798		746		Envision Healthcare Holdings Inc ^(b)	53,723		1,153
Orkla ASA	31,593		289		EPS Holdings Inc	9,000		113
Post Holdings Inc ^(b)	7,620		646		Fresenius Medical Care AG & Co KGaA	682		60
Safeway, Inc. - CVR - Casa Ley ^(b),(e),(f)	11,050		—		Humana Inc ^(a)	22,607		4,040
Safeway, Inc. - CVR - Property Development	11,050		—		Laboratory Corp of America Holdings ^(b)	13,009		1,781
Centers ^(b),(e),(f)					MEDNAX Inc ^(a),(b)	17,830		1,173
Seven & i Holdings Co Ltd	10,940		460		PeptiDream Inc ^(b)	1,426		61
Sonae SGPS SA	5,811		5		Quorum Health Corp ^(b)	18,373		113
Suedzucker AG	23,993		626		RHOEN-KLINIKUM AG	6,634		196
Sysco Corp ^(a)	25,800		1,338		UnitedHealth Group Inc	20,183		2,746
United Super Markets Holdings Inc	11,100		101				$	16,097
WhiteWave Foods Co/The ^(b)	133,015		7,373		Holding Companies - Diversified - 0.07%
Whole Foods Market Inc ^(a)	59,666		1,813		Leucadia National Corp	97,930		1,875
Yamazaki Baking Co Ltd	3,927		89
		$	32,571		Home Builders - 0.42%
Forest Products & Paper - 0.05%					Cairn Homes PLC ^(b)	1,684,309		1,999
BillerudKorsnas AB	2,981		51		Iida Group Holdings Co Ltd	13,537		254
Holmen AB	333		12		NVR Inc ^(a),(b)	3,651		6,159
Smurfit Kappa Group PLC	38,495		950		PulteGroup Inc ^(d)	81,710		1,746
UPM-Kymmene OYJ	11,788		237		Toll Brothers Inc ^(a),(b)	43,790		1,361
		$	1,250				$	11,519
Gas - 0.19%					Home Furnishings - 0.16%
CenterPoint Energy Inc ^(a)	75,680		1,701		Alpine Electronics Inc	48,700		587
Enagas SA ^(a)	11,274		331		Electrolux AB	34,304		894
Piedmont Natural Gas Co Inc	16,336		982		Leggett & Platt Inc ^(a)	29,370		1,541
Questar Corp	38,916		973		Panasonic Corp	27,900		287
Snam SpA	7,949		44		Pioneer Corp ^(b)	207,200		455
Toho Gas Co Ltd	12,953		110		TiVo Inc ^(b)	50,962		541
UGI Corp	24,458		1,113				$	4,305
		$	5,254


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000 's)
Housewares - 0.04%					Internet (continued)
Tupperware Brands Corp ^(a)	15,280	$	1,001		Priceline Group Inc/The ^(b)	2,120	$		3,003
					Proto Corp	4,500			51
Insurance - 1.96%					Quotient Technology Inc ^(b)	54,224			703
Ageas	7,920		275		Rakuten Inc	27,000			341
Alleghany Corp ^(b),(d)	1,688		905		SMS Co Ltd	11,495			245
Allianz SE	287		43		Stamps.com Inc ^(a),(b)	11,160			1,079
American Equity Investment Life Holding Co	52,072		917		Start Today Co Ltd	2,616			121
(a)					Tencent Holdings Ltd	13,680			354
American Financial Group Inc/OH ^(a)	27,794		2,089		TripAdvisor Inc ^(b)	4,723			288
American International Group Inc ^(d)	70,058		4,192		VeriSign Inc ^(a),(b)	10,136			755
Arthur J Gallagher & Co ^(a)	65,405		3,232		Wayfair Inc ^(b)	36,406			1,402
Assicurazioni Generali SpA	2,697		34		WebMD Health Corp ^(b)	11,490			593
Assured Guaranty Ltd	17,095		475		Yahoo! Inc ^(b)	63,908			2,732
Baloise Holding AG	1,956		233				$		61,038
Berkshire Hathaway Inc - Class B ^(b)	12,007		1,807		Investment Companies - 0.01%
Brown & Brown Inc ^(a)	36,087		1,352		American Capital Ltd ^(b)	19,643			332
Chubb Ltd ^(a)	43,047		5,464
Cincinnati Financial Corp ^(a)	23,160		1,786		Iron & Steel - 0.12%
Dai-ichi Life Insurance Co Ltd/The	41,200		575		Aichi Steel Corp	9,000			48
Delta Lloyd NV	45,948		187		Chubu Steel Plate Co Ltd	12,600			62
Everest Re Group Ltd ^(a)	5,980		1,156		Hitachi Metals Ltd	26,270			319
Fairfax Financial Holdings Ltd	3,201		1,812		Japan Steel Works Ltd/The	102,000			476
Genworth Financial Inc ^(a),(b)	259,380		1,227		Kobe Steel Ltd	39,000			36
Gjensidige Forsikring ASA	5,045		86		Kyoei Steel Ltd	19,200			373
Hannover Rueck SE	2,208		226		Outokumpu OYJ ^(b)	4,415			24
Helvetia Holding AG	239		120		Reliance Steel & Aluminum Co	9,660			696
Lincoln National Corp	18,259		877		Salzgitter AG	5,253			160
Markel Corp ^(b)	4,127		3,843		SSAB AB ^(b)	5,833			17
Marsh & McLennan Cos Inc	33,662		2,277		Tokyo Steel Manufacturing Co Ltd	61,900			436
MetLife Inc	114,610		4,974		Yamato Kogyo Co Ltd	14,500			444
MGIC Investment Corp ^(b)	37,379		302		Yodogawa Steel Works Ltd	4,800			126
Muenchener Rueckversicherungs-Gesellschaft	474		86				$		3,217
AG in Muenchen					Leisure Products & Services - 0.10%
NN Group NV	16,218		484		Amer Sports Oyj	3,198			96
Poste Italiane SpA ^(c)	43,438		303		Harley-Davidson Inc	27,857			1,468
Progressive Corp/The ^(a)	29,711		967
					HIS Co Ltd	6,020			152
Prudential Financial Inc	21,310		1,692		TUI AG	62,391			870
Reinsurance Group of America Inc	17,318		1,859		Yamaha Corp	3,046			99
RenaissanceRe Holdings Ltd ^(a)	4,935		591
							$		2,685
Saga PLC	301,357		872		Lodging - 0.30%

Swiss Life Holding AG(b)	3,654		916		Diamond Resorts International Inc ^(b)	28,468			860
Swiss Re AG	1,970		166		Las Vegas Sands Corp	4,620			232
T&D Holdings Inc	78,600		899		Starwood Hotels & Resorts Worldwide Inc ^(a)	81,916			6,345
Talanx AG	5,777		169		Wyndham Worldwide Corp ^(a)	12,136			859
Tokio Marine Holdings Inc	15,064		593				$		8,296
Torchmark Corp ^(a)	7,025		454
Travelers Cos Inc/The ^(a)	5,720		679		Machinery - Construction & Mining - 0.11%
					Caterpillar Inc ^(a)	28,130			2,306
Unipol Gruppo Finanziario SpA	35,353		98		Joy Global Inc	12,687			346
White Mountains Insurance Group Ltd	1,501		1,237
Willis Towers Watson PLC ^(a)	10,586		1,313		Mitsubishi Electric Corp	26,535			347
Zurich Insurance Group AG ^(b)	275		70				$		2,999
					Machinery - Diversified - 0.47%
		$	53,914		Alstom SA ^(b)	32,487			861
Internet - 2.22%					Cummins Inc	3,760			472
Alibaba Group Holding Ltd ADR^(b)	28,251		2,746
Alphabet Inc - C Shares ^(a),(b)	7,140		5,477		Daifuku Co Ltd	9,700			168
Amazon.com Inc ^(a),(b)	8,205		6,311		Deere & Co	7,280			616
AVG Technologies NV ^(b)	23,023		572		Flowserve Corp	12,440			602
Blucora Inc ^(a),(b)	28,980		300		FLSmidth & Co A/S	318			12
comScore Inc ^(b)	32,202		993		GEA Group AG	4,697			251
Corindus Vascular Robotics Inc ^(b)	418,756		490		Hisaka Works Ltd	14,100			108
					Husqvarna AB	58,983			509
CyberAgent Inc	5,850		317		IDEX Corp ^(a)	36,733			3,432
Dip Corp	7,174		207
eBay Inc ^(a),(b)	69,260		2,227		KION Group AG	4,630			263
					MAN SE	2,429			253
en-japan Inc	14,680		276		Metso OYJ	1,468			41
Expedia Inc	20,853		2,275		Middleby Corp/The ^(b)	25,210			3,231
Facebook Inc ^(b)	35,067		4,423
GoDaddy Inc ^(b)	29,306		949		Miura Co Ltd	4,681			88
					OC Oerlikon Corp AG ^(b)	20,859			201
Gree Inc	71,800		365
Itokuro Inc ^(b)	3,000		83		Sumitomo Heavy Industries Ltd	145,500			716
Klarna Holding AB ^{(b),(e),(f),(g)}	808		91		Toshiba Machine Co Ltd	82,000			270
					Xylem Inc/NY ^(a)	13,700			697
LinkedIn Corp ^(b)	82,780		15,956
Liquidity Services Inc ^(a),(b)	42,360		424		Zuiko Corp	2,930			120
							$		12,911
M3 Inc	6,002		180
Netflix Inc ^(a),(b)	48,317		4,709


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Media - 0.92%					Oil & Gas (continued)
CBS Corp ^(a)	16,610	$	848		Memorial Resource Development Corp ^(b)	34,449	$		496
Comcast Corp - Class A	64,226		4,191		Murphy Oil Corp	24,910			666
DISH Network Corp ^(b)	103,559		5,201		Neste Oyj	1,277			53
EW Scripps Co/The ^(b)	58,067		987		Newfield Exploration Co ^(b)	49,714			2,156
FactSet Research Systems Inc ^(a)	22,049		3,925		Noble Energy Inc	27,070			933
Gray Television Inc ^(b)	150,229		1,687		Occidental Petroleum Corp	55,580			4,271
Media General Inc ^(b)	23,078		408		OGX Petroleo e Gas SA ADR^(b)	26,974			22
Mediaset Espana Comunicacion SA	5,524		67		Pioneer Natural Resources Co	34,312			6,144
Mediaset SpA	131,507		416		Repsol SA ^(a)	13,017			175
Nexstar Broadcasting Group Inc	11,621		613		Suncor Energy Inc	16,743			454
Nippon Television Holdings Inc	40,750		659		Whiting Petroleum Corp ^(b)	91,640			668
NOS SGPS SA	20,890		142				$		37,361
Sinclair Broadcast Group Inc	18,502		527		Oil & Gas Services - 0.22%
Starz ^(b)	4,746		148		Baker Hughes Inc	38,327			1,883
Tribune Media Co	55,012		2,095		FMC Technologies Inc ^(a),(b)	50,067			1,412
TV Asahi Holdings Corp	8,100		130		Fugro NV ^(b)	3,210			51
Twenty-First Century Fox Inc - A Shares ^(a)	24,500		601		Halliburton Co	38,963			1,676
Viacom Inc - B Shares	27,770		1,120		Schlumberger Ltd ^(a)	9,860			779
Wolters Kluwer NV	38,389		1,615		Subsea 7 SA ^(b)	19,531			211
		$	25,380				$		6,012
Metal Fabrication & Hardware - 0.02%					Packaging & Containers - 0.11%
Aurubis AG	8,237		434		Ball Corp	15,491			1,227
Neturen Co Ltd	18,500		129		Huhtamaki OYJ	1,526			66
SKF AB	745		12		KapStone Paper and Packaging Corp ^(a)	21,142			370
Tsubaki Nakashima Co Ltd	7,900		113		Packaging Corp of America ^(a)	5,450			429
		$	688		Silgan Holdings Inc ^(d)	17,773			855
Mining - 0.08%							$		2,947
Boliden AB	12,775		270		Pharmaceuticals - 2.55%
Constellium NV ^(b)	130,165		974		Actelion Ltd ^(b)	235			39
Franco-Nevada Corp	2,676		187		Allergan plc ^(b)	61,747			14,482
Freeport-McMoRan Inc	63,140		650		Almirall SA	25,256			385
Pacific Metals Co Ltd	76,000		212		AstraZeneca PLC	26,776			1,728
		$	2,293		AstraZeneca PLC ADR	22,888			751
Miscellaneous Manufacturers - 0.65%					Bayer AG	832			89
3M Co ^(a)	6,705		1,202		Bristol-Myers Squibb Co ^(a)	158,997			9,125
Carlisle Cos Inc ^(a)	17,920		1,879		Cardinal Health Inc ^(a)	51,382			4,094
Eaton Corp PLC ^(a)	14,740		981		DexCom Inc ^(b)	28,357			2,583
EnPro Industries Inc	39,050		2,105		Eisai Co Ltd	25,880			1,510
FUJIFILM Holdings Corp	11,540		434		Eli Lilly & Co ^(a)	19,790			1,539
General Electric Co ^(a)	142,389		4,448		Endo International PLC ^(b)	42,600			882
Harsco Corp ^(a)	78,630		782		Galenica AG	145			168
Illinois Tool Works Inc ^(a)	28,163		3,347		Grifols SA	3,000			64
Ingersoll-Rand PLC ^(a)	22,790		1,550		H Lundbeck A/S ^(b)	10,224			409
Nikon Corp	37,700		554		Herbalife Ltd ^(b)	1,772			108
Siemens AG	2,700		322		Johnson & Johnson ^(a)	34,340			4,098
Sumitomo Riko Co Ltd	24,200		226		Mallinckrodt PLC ^(a),(b)	14,075			1,049
Tenma Corp	7,600		117		McKesson Corp	8,473			1,564
Trelleborg AB	1,442		28		Mead Johnson Nutrition Co ^(a)	8,424			717
		$	17,975		Merck & Co Inc ^(a)	96,159			6,038
Office & Business Equipment - 0.06%					Mylan NV ^(b)	33,004			1,398
Canon Inc	25,000		717		Nippon Shinyaku Co Ltd	12,560			583
Xerox Corp	89,260		879		Novo Nordisk A/S	1,901			89
		$	1,596		Ono Pharmaceutical Co Ltd	16,014			417
Oil & Gas - 1.36%					Orion Oyj	429			16
Anadarko Petroleum Corp ^(a)	48,458		2,591		Perrigo Co PLC	18,990			1,728
Apache Corp	13,290		661		Pfizer Inc ^(a)	88,990			3,097
					Portola Pharmaceuticals Inc ^(b)	20,129			410
Cabot Oil & Gas Corp	32,750		807
Chevron Corp ^(a)	19,570		1,968		Quintiles Transnational Holdings Inc ^(b)	12,442			962
Cimarex Energy Co	2,750		364		Recordati SpA	7,249			219
Cobalt International Energy Inc ^(b)	85,785		103		Relypsa Inc ^(b)	19,613			627
ConocoPhillips	21,350		876		Shire PLC ADR	13,140			2,460
Devon Energy Corp ^(a)	9,210		399		Sosei Group Corp ^(b)	1,488			240
EOG Resources Inc	20,178		1,785		STADA Arzneimittel AG	8,292			445
Exxon Mobil Corp ^(a)	51,136		4,456		Suzuken Co Ltd/Aichi Japan	1,700			49
Galp Energia SGPS SA	8,076		118		Swedish Orphan Biovitrum AB ^(b)	7,868			93
Hess Corp	44,192		2,399		Takeda Pharmaceutical Co Ltd	25,430			1,121
HollyFrontier Corp ^(a)	23,720		614		TherapeuticsMD Inc ^(b)	472,561			3,251
Imperial Oil Ltd	66,878		2,037		TherapeuticsMD Inc ^(b),(e),(f)	15,388			106
					Zoetis Inc ^(a)	30,960			1,582
Inpex Corp	75,500		654
InterOil Corp ^(b)	632		31				$		70,315
Japan Petroleum Exploration Co Ltd	17,100		376		Pipelines - 0.07%
Karoon Gas Australia Ltd ^(b)	163,694		162		Williams Cos Inc/The	70,740			1,977
Marathon Oil Corp	61,404		922


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Private Equity - 0.03%					Retail (continued)
Kennedy-Wilson Holdings Inc	42,178	$	930		Joyful Honda Co Ltd	3,749	$	91
					Kate Spade & Co ^(b)	12,222		228
Real Estate - 0.12%					Kohl's Corp	23,200		1,030
Deutsche Wohnen AG	22,359		839		L Brands Inc ^(a)	13,810		1,053
GEK Terna Holding Real Estate Construction	102,547		216		Lowe's Cos Inc ^(a)	48,766		3,733
SA ^(b)					Macy's Inc	27,021		978
Hulic Co Ltd	25,900		246		Mattress Firm Holding Corp ^(b)	6,735		431
LEG Immobilien AG ^(b)	7,969		777		McDonald's Corp ^(a)	29,149		3,371
Leopalace21 Corp	84,690		562		MSC Industrial Direct Co Inc	19,806		1,447
Relo Group Inc	1,230		174		Nishimatsuya Chain Co Ltd	5,900		81
Sumitomo Real Estate Sales Co Ltd	10,500		198		Nitori Holdings Co Ltd	1,742		176
Takara Leben Co Ltd	57,100		373		Nordstrom Inc	7,847		396
WeWork Cos Inc ^{(b),(e),(f),(g)}	979		49		Outerwall Inc	3,299		171
		$	3,434		PAL GROUP Holdings Co Ltd	7,800		163
REITS - 1.25%					Panera Bread Co ^(a),(b)	19,147		4,158
American Campus Communities Inc	25,760		1,291		Restoration Hardware Holdings Inc ^(b)	7,082		239
American Tower Corp	27,626		3,132		Rite Aid Corp ^(a),(b)	196,298		1,478
Annaly Capital Management Inc	1,410		15		Seria Co Ltd	1,911		126
AvalonBay Communities Inc ^(a)	1,910		334		Signet Jewelers Ltd	12,419		1,018
Boston Properties Inc ^(a)	7,830		1,097		Staples Inc ^(a)	107,790		923
Camden Property Trust ^(a)	39,226		3,443		Sundrug Co Ltd	4,571		331
Care Capital Properties Inc ^(a)	25,250		757		Tailored Brands Inc ^(a)	47,650		628
Corrections Corp of America	41,630		663		Target Corp ^(a)	12,220		858
Crown Castle International Corp ^(a)	6,240		591		Tiffany & Co	13,960		996
Equinix Inc	3,732		1,376		TJX Cos Inc/The ^(a)	39,573		3,065
Equity Residential	8,230		534		Tsuruha Holdings Inc	2,819		276
Federal Realty Investment Trust ^(a)	11,466		1,823		Walgreens Boots Alliance Inc	21,160		1,708
General Growth Properties Inc ^(a)	16,157		471		Wal-Mart Stores Inc	22,450		1,604
Grivalia Properties REIC AE	92,689		723		Welcia Holdings Co Ltd	5,296		311
Hibernia REIT plc	772,514		1,205		Williams-Sonoma Inc	22,940		1,208
Hoshino Resorts REIT Inc	8		95		World Fuel Services Corp	29,673		1,323
Irish Residential Properties REIT Plc	1,176,121		1,536		Xebio Holdings Co Ltd	16,000		243
Iron Mountain Inc ^(a)	43,340		1,665		Yum! Brands Inc ^(a)	18,160		1,647
Lamar Advertising Co ^(a)	38,276		2,386				$	63,361
LibertyPropertyTrust ^(a)	49,940		2,059		Savings & Loans - 0.22%
National Retail Properties Inc ^(a)	48,030		2,406		Astoria Financial Corp ^(a)	47,178		722
NorthStar Realty Finance Corp	14,768		197		Dime Community Bancshares Inc ^(a)	10,977		194
Parkway Properties Inc/Md	12,974		234		EverBank Financial Corp	24,098		462
Post Properties Inc	6,654		441		New York Community Bancorp Inc	108,338		1,637
Prologis Inc ^(a)	19,927		1,058		People's United Financial Inc ^(a)	96,740		1,572
Regency Centers Corp ^(a)	21,670		1,745		Washington Federal Inc ^(a)	58,710		1,556
Taubman Centers Inc ^(a)	12,930		1,004				$	6,143
UDR Inc ^(a)	33,230		1,202		Semiconductors - 1.37%
Vornado Realty Trust ^(a)	8,590		888		Analog Devices Inc ^(a)	9,380		587
		$	34,371		Applied Materials Inc ^(a)	24,120		720
Retail - 2.30%					ASM International NV	3,309		126
Abercrombie & Fitch Co ^(a)	70,370		1,248		Broadcom Ltd	12,503		2,206
Advance Auto Parts Inc ^(d)	22,573		3,553		Cypress Semiconductor Corp	8,211		98
Autogrill SpA ^(a)	25,406		218		Dialog Semiconductor PLC ^(b)	1,744		61
AutoZone Inc ^(a),(b)	576		427		Fairchild Semiconductor International Inc ^(a),(b)	27,607		549
Bed Bath & Beyond Inc	30,930		1,434		Infineon Technologies AG	10,811		181
BJ's Restaurants Inc ^(a),(b)	26,670		1,059		Integrated Device Technology Inc ^(a),(b)	13,301		267
Bob Evans Farms Inc/DE ^(a)	12,700		521		Intel Corp ^(a)	80,690		2,896
CarMax Inc ^(b)	10,508		619		KLA-Tencor Corp ^(a)	31,612		2,189
Cash America International Inc	4,245		185		Lam Research Corp	15,032		1,403
Cawachi Ltd	7,900		175		Linear Technology Corp ^(a)	46,808		2,726
Chipotle Mexican Grill Inc ^(b)	2,344		970		Mellanox Technologies Ltd ^(b)	28,110		1,232
Citizen Holdings Co Ltd	42,500		235		Microchip Technology Inc	5,043		312
Coach Inc ^(a)	61,167		2,335		Micron Technology Inc ^(b)	282,189		4,654
cocokara fine Inc	3,750		127		Mimasu Semiconductor Industry Co Ltd	11,100		124
Costco Wholesale Corp	44,314		7,183		Miraial Co Ltd	9,800		68
Create SD Holdings Co Ltd	5,212		114		MKS Instruments Inc ^(a)	14,250		695
CST Brands Inc	28,398		1,358		Nippon Chemi-Con Corp	88,000		153
Darden Restaurants Inc ^(a)	18,400		1,134		NXP Semiconductors NV ^(b)	31,141		2,741
Francesca's Holdings Corp ^(a),(b)	37,789		516		Qorvo Inc ^(b)	49,369		2,835
Gap Inc/The	45,631		1,135		QUALCOMM Inc ^(a)	34,640		2,185
Genuine Parts Co ^(a)	7,250		745		Rohm Co Ltd	13,950		699
H2O Retailing Corp	6,900		94		Shinkawa Ltd ^(b)	23,900		148
Home Depot Inc/The ^(a)	10,043		1,347		Shinko Electric Industries Co Ltd	59,400		330
Honeys Co Ltd	15,580		188		Silicon Laboratories Inc ^(a),(b)	8,870		508
Hornbach Holding AG & Co KGaA	10,732		744		Skyworks Solutions Inc	44,193		3,308
IDOM Inc	27,500		164		STMicroelectronics NV	5,782		43
Industria de Diseno Textil SA	717		25		Sumco Corp	85,165		746
Jand Inc ^{(b),(e),(f),(g)}	1,693		19		Texas Instruments Inc ^(a)	9,720		676


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Semiconductors (continued)					Toys, Games & Hobbies (continued)
Tokyo Electron Ltd	3,068	$	283		Nintendo Co Ltd		4,024	$	888
Ultratech Inc ^(b)	10,390		260					$	3,702
Xilinx Inc ^(a)	30,738		1,666		Transportation - 0.87%
		$	37,675		AP Moeller - Maersk A/S - B shares		18		27
Software - 1.53%					bpost SA		18,944		482
Adobe Systems Inc ^(b)	7,968		815		Canadian National Railway Co		53,008		3,406
Alpha Systems Inc	2,400		36		Cargotec Oyj		3,817		171
ANSYS Inc ^(a),(b)	12,943		1,231		CH Robinson Worldwide Inc		24,510		1,701
athenahealth Inc ^(b)	10,230		1,252		Deutsche Post AG		1,678		53
Autodesk Inc ^(b)	23,224		1,565		DSV A/S		4,688		233
CA Inc ^(a)	23,489		797		East Japan Railway Co		3,550		305
CareView Communications Inc ^(b)	1,057,333		174		Expeditors International of Washington Inc ^(a)		9,310		472
Cerner Corp ^(a),(b)	8,600		555		FedEx Corp		7,489		1,235
Citrix Systems Inc ^(a),(b)	9,120		795		Genesee & Wyoming Inc ^(b)		37,750		2,567
CommVault Systems Inc ^(b)	15,000		773		Golar LNG Ltd		52,379		1,091
Cvent Inc ^(b)	20,826		681		Groupe Eurotunnel SE		54,832		604
DeNA Co Ltd	32,897		978		Irish Continental Group PLC		132,630		699
Digi International Inc ^(a),(b)	27,402		314		Kansas City Southern ^(a)		12,380		1,197
Dun & Bradstreet Corp/The	2,158		297		Knight Transportation Inc		32,944		926
Envestnet Inc ^(b)	13,730		542		Landstar System Inc		12,448		862
Fidelity National Information Services Inc ^(a)	7,619		604		Union Pacific Corp		25,945		2,479
Fiserv Inc ^(a),(b)	7,042		726		United Parcel Service Inc ^(a),(d)		42,203		4,609
inContact Inc ^(b)	25,713		357		XPO Logistics Inc ^(b)		26,801		959
Interactive Intelligence Group Inc ^(b)	939		56					$	24,078
Intuit Inc ^(a)	22,540		2,512		Trucking & Leasing - 0.04%
Jack Henry & Associates Inc ^(a)	27,500		2,400		AMERCO		2,966		1,019
Konami Holdings Corp	2,528		89
Microsoft Corp ^(a),(d)	120,829		6,943		Water- 0.09	%
MSCI Inc ^(a)	19,377		1,746		Aqua America Inc ^(a)		58,770		1,787
NetSuite Inc ^(b)	4,403		480		Veolia Environnement SA		38,817		827
Paychex Inc ^(a)	57,520		3,490					$	2,614
Press Ganey Holdings Inc ^(b)	2,883		116
					TOTAL COMMON STOCKS			$	1,064,798
Rackspace Hosting Inc ^(a),(b)	68,513		2,155
					INVESTMENT COMPANIES - 21.67%		Shares Held		Value(000	's)
Red Hat Inc ^(a),(b)	27,486		2,006
					Exchange Traded Funds - 0.02%
ServiceNow Inc ^(b)	12,311		895
					TOPIX Exchange Traded Fund		36,570		477
Software AG	9,203		366
SS&C Technologies Holdings Inc	84,118		2,772		Money Market Funds - 21.65%
Workday Inc ^(b)	41,918		3,554
					BlackRock Liquidity Funds FedFund Portfolio		4,879,992		4,880
		$	42,072		Wells Fargo Advantage Government Money		591,478,524		591,479
Telecommunications - 0.76%					Market Fund ^(h)
ARRIS International PLC ^(a),(b)	16,504		463
								$	596,359
AT&T Inc ^(a)	55,083		2,252
					TOTAL INVESTMENT COMPANIES			$	596,836
CalAmp Corp ^(a),(b)	31,259		456
CenturyLink Inc ^(a)	39,540		1,099		CONVERTIBLE PREFERRED STOCKS -
					0.69	%	Shares Held		Value(000	's)
Cisco Systems Inc	11,200		352
					Agriculture - 0.02%
Comtech Telecommunications Corp	24,420		315		Bunge Ltd 4.88%⁽ⁱ⁾		4,480	$	440
Elisa OYJ	449		16
Gogo Inc ^(b)	38,248		468
					Automobile Manufacturers - 0.02%
Hellenic Telecommunications Organization	69,388		657		Fiat Chrysler Automobiles NV 7.88%		7,500		498
SA
Loral Space & Communications Inc ^(b)	46,587		1,698
					Electric - 0.04%
Manitoba Telecom Services Inc	32,331		940
Motorola Solutions Inc ^(a)	56,955		4,385		Black Hills Corp 7.75%		10,000		658
					Dominion Resources Inc/VA 6.75%		2,375		121
Nippon Telegraph & Telephone Corp	14,846		653		Dynegy Inc 7.00%		1,975		170
NTT DOCOMO Inc	25,664		647
ParkerVision Inc ^(b)	54,806		260					$	949
Polycom Inc ^(b)	44,505		554		Electrical Components & Equipment - 0.01%
					Belden Inc 6.75%		1,950		208
Proximus SADP	16,107		493
Sunrise Communications Group AG ^(b),(c)	2,859		195
					Food- 0.00	%
Swisscom AG	4,008		1,917		Post Holdings Inc 2.50%⁽ⁱ⁾		725		116
TDC A/S	84,748		469
Telefonaktiebolaget LM Ericsson	4,521		32
Telia Co AB	6,748		30		Healthcare - Services - 0.07%
T-Mobile US Inc ^(b)	38,630		1,790		Anthem Inc 5.25%		45,500		1,953
Verizon Communications Inc ^(a)	14,152		741

		$	20,882		Internet - 0.01%
					Airbnb, Inc(b),(e),(f),(g)		1,685		177
Textiles - 0.04%
					DraftKings Inc(b),(e),(f),(g)		29,108		56
G&K Services Inc	2,716		264
					Dropbox Inc(b),(e),(f),(g)		2,671		34
UniFirst Corp/MA	7,146		918
								$	267
		$	1,182
					Investment Companies - 0.08%
Toys, Games & Hobbies - 0.13%					Mandatory Exchangeable Trust 5.75%^(c)		18,658		2,248
Mattel Inc ^(a)	84,933		2,814


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



	CONVERTIBLE PREFERRED STOCKS										Principal
	(continued)		Shares Held		Value(000			's)	BONDS (continued)		Amount (000's) Value (000's)
	Pharmaceuticals - 0.19%								Automobile Asset Backed Securities (continued)
	Allergan plc 5.50%			4,220	$		3,514		AmeriCredit Automobile Receivables Trust
	Teva Pharmaceutical Industries Ltd 7.00%			1,958			1,684		2016-2
					$		5,198		3.65%, 05/09/2022^(j)		$	80	$	83
	REITS- 0.16	%							CPS Auto Receivables Trust 2016-B
	Crown Castle International Corp 4.50%^(a)			11,450			1,291		8.14%, 05/15/2023^(c),(j)			855		901
	Welltower Inc 6.50%^(a),(i)			45,600			3,147		DT Auto Owner Trust 2014-3
					$		4,438		4.47%, 11/15/2021^(c),(j)			175		178
	Retail - 0.00%								DT Auto Owner Trust 2016-1
									4.66%, 12/15/2022^(c),(j)			1,335		1,338
	Jand Inc(b),(e),(f),(g)			3,781			41
									DT Auto Owner Trust 2016-2
									5.43%, 11/15/2022^(c),(j)			820		840
	Software - 0.00%
	Cloudera Inc (b),(e),(f),(g)			3,756			64		First Investors Auto Owner Trust 2014-1
									3.28%, 04/15/2021^(c),(j)			70		69

									First Investors Auto Owner Trust 2014-2
	Telecommunications - 0.09%								3.47%, 02/15/2021^(c),(j)			120		118
	T-Mobile US Inc 5.50%			33,825			2,600
									First Investors Auto Owner Trust 2015-1
									3.59%, 01/18/2022^(c),(j)			100		98
	TOTAL CONVERTIBLE PREFERRED STOCKS				$		19,020
	PREFERRED STOCKS - 0.12%		Shares Held		Value(000			's)	First Investors Auto Owner Trust 2015-2
									4.22%, 12/15/2021^(c),(j)			565		553
	Advertising - 0.00%
	Trade Desk Preferred (b),(e),(f),(g)			17,091			116		Flagship Credit Auto Trust 2015-1
									3.76%, 06/15/2021^(c)			165		165

	Electronics - 0.01%
									Flagship Credit Auto Trust 2015-2
	Veracode Inc (b),(e),(f),(g)			6,031			149		5.98%, 08/15/2022(c)			710		710
									Flagship Credit Auto Trust 2015-3
									7.12%, 11/15/2022^(c)			960		988
	Internet - 0.07%
	Forescout Tech Inc (b),(e),(f),(g)			9,157			112
									Ford Credit Auto Owner Trust 2015-B
	General Assembly Space, Inc (b),(e),(f),(g)			2,184			107		1.16%, 11/15/2019(j)			550		550

	Lithium Technologies Inc (b),(e),(f),(g)			59,552			325
	Pinterest Inc (b),(e),(f),(g)			87,425			570
									Nissan Auto Receivables 2016-C Owner Trust
	Uber Technologies Inc (b),(e),(f),(g)			15,196			741		1.18%, 01/15/2021(j)			200		199
									Prestige Auto Receivables Trust 2016-1
	Zuora Inc (b),(e),(f),(g)			40,988			181		5.15%, 11/15/2021^(c)			815		821
					$		2,036

	Private Equity - 0.01%
									Toyota Auto Receivables 2014-C Owner
	Forward Venture Services LLC (b),(e),(f),(g)			5,465			239		Trust
									0.93%, 07/16/2018			252		252
									Toyota Auto Receivables 2016-C
	Real Estate - 0.02%								1.14%, 08/17/2020^(j)			165		164
	Redfin Corp (b),(e),(f),(g)			29,409			110
									USAA Auto Owner Trust 2015-1
	WeWork Cos Inc Series D-1 (b),(e),(f),(g)			4,867			244		1.20%, 06/17/2019^(j)			1,200		1,201
	WeWork Cos Inc Series D-2 (b),(e),(f),(g)			3,824			192
												$		9,424
					$		546
									Automobile Manufacturers - 0.12%
	Software - 0.01%
									Ford Motor Credit Co LLC
	Birst Inc (b),(e),(f),(g)			21,065			115		1.46%, 01/17/2017^(j)			625		626
	Marklogic Corp (b),(e),(f),(g)			14,832			155

	Nutanix Inc (b),(e),(f),(g)			3,575			45		General Motors Financial Co Inc
									3.70%, 05/09/2023			245		250
					$		315
									4.00%, 01/15/2025			915		932
	TOTAL PREFERRED STOCKS				$		3,401		Hyundai Capital Services Inc
			Principal						1.45%, 03/18/2017^(c),(j)			950		950
	BONDS- 26.72	%	Amount (000's)		Value(000			's)	Volkswagen International Finance NV
	Aerospace & Defense - 0.17%								1.24%, 11/18/2016^(c),(j)			450		450
	Embraer Netherlands Finance BV											$		3,208
	5.05%, 06/15/2025		$	310		$	312		Banks- 1.66	%
	Embraer Overseas Ltd
	5.70%, 09/16/2023^(c)			320			340		Bank of America Corp
									4.20%, 08/26/2024			1,390		1,475
	Meccanica Holdings USA Inc								6.00%, 09/01/2017			1,100		1,148
	6.25%, 01/15/2040^(c)			1,685			1,685
									Bank of America NA
	Rockwell Collins Inc								0.95%, 06/15/2017^(j)			250		250
	1.00%, 12/15/2016^(j)			115			115

	StandardAero Aviation Holdings Inc								Banque Centrale de Tunisie International
	10.00%, 07/15/2023 ^(c)			2,000			2,100		Bond
									5.75%, 01/30/2025			9,340		9,202
					$		4,552		Barclays PLC
	Airlines - 0.12%								5.20%, 05/12/2026			200		208
	Air Canada 2015-2 Class B Pass Through								Citigroup Inc
	Trust								1.53%, 11/24/2017^(j)			945		947
	5.00%, 06/15/2025^(c)			2,020			2,020

									Financiera de Desarrollo Territorial SA
	Latam Airlines 2015-1 Pass Through Trust B								Findeter
	4.50%, 08/15/2025(c)			1,203			1,158		7.88%, 08/12/2024^(c)		COP	3,380,000		1,020
					$		3,178		Goldman Sachs Group Inc/The
	Automobile Asset Backed Securities - 0.34%								1.31%, 06/04/2017^(j)		$	1,205		1,207
	AmeriCredit Automobile Receivables 2015-4								HSBC Holdings PLC
	3.72%, 12/08/2021			189			196		4.30%, 03/08/2026			1,225		1,318
									KFW
									1.00%, 07/15/2019			867		863


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Banks (continued)					Commercial Mortgage Backed Securities (continued)
KFW (continued)					CGBAM Commercial Mortgage Trust 2014-
1.50%, 04/20/2020	$	1,980	$	1,998	HD
1.50%, 06/15/2021		2,025		2,033	2.11%, 02/15/2031^(c),(j)		$	610	$	596
Letras del Banco Central de la Republica					Citigroup Commercial Mortgage Trust 2014-
Argentina					GC19
0.00%, 01/04/2017^(b)	ARS	50,000		3,079	5.06%, 03/10/2047^(c),(j)			2,000		1,695
Lloyds Banking Group PLC					COBALT CMBS Commercial Mortgage Trust
4.65%, 03/24/2026	$	400		415	2007	-C2
Morgan Stanley					5.62%, 04/15/2047			5,000		4,850
4.35%, 09/08/2026		1,345		1,441	COMM 2014-SAVA Mortgage Trust
Royal Bank of Scotland Group PLC					1.66%, 06/15/2034^(c),(j)			79		79
5.13%, 05/28/2024		200		203	2.26%, 06/15/2034^(c),(j)			145		144
6.00%, 12/19/2023		360		381	2.91%, 06/15/2034^(c),(j)			290		287
Russian Agricultural Bank OJSC Via RSHB					Commercial Mortgage Trust 2005-GG5
Capital SA					5.71%, 04/10/2037^(j)			1,825		1,477
5.10%, 07/25/2018		6,375		6,557	Commercial Mortgage Trust 2007-GG11
Santander Holdings USA Inc					6.33%, 12/10/2049^(j)			1,500		1,470
4.50%, 07/17/2025		2,550		2,671	Extended Stay America Trust 2013-ESH
Santander Issuances SAU					4.17%, 12/05/2031^(c),(j)			857		858
5.18%, 11/19/2025		200		208	Ginnie Mae
Santander UK Group Holdings PLC					0.69%, 01/16/2053^(j),(k)			7,645		356
4.75%, 09/15/2025^(c)		1,000		1,005	GS Mortgage Securities Trust 2007-GG10
Standard Chartered PLC					5.99%, 08/10/2045^(j)			1,745		1,685
4.30%, 02/19/2027^(c)		800		807	Hilton USA Trust 2013-HLT
TC Ziraat Bankasi AS					3.71%, 11/05/2030^(c),(j)			275		276
4.75%, 04/29/2021^(c)		7,000		6,988	4.41%, 11/05/2030^(c),(j)			190		191
Wells Fargo & Co					5.61%, 11/05/2030^(c),(j)			215		216
0.99%, 06/02/2017^(j)		275		275	JP Morgan Chase Commercial Mortgage
		$		45,699	Securities Trust 2007-LDP10
Biotechnology - 0.13%					5.46%, 01/15/2049			250		243
Concordia International Corp					JP Morgan Chase Commercial Mortgage
9.50%, 10/21/2022^(c)		4,287		3,526	Securities Trust 2015-SGP
					5.01%, 07/15/2036^(c),(j)			785		785
Building Materials - 0.09%					Morgan Stanley Capital I Trust 2007-HQ12
Builders FirstSource Inc					5.90%, 04/12/2049^(j)			279		280
5.63%, 09/01/2024^(c)		586		596	Morgan Stanley Capital I Trust 2011-C2
Cemex SAB de CV					5.65%, 06/15/2044^(c),(j)			475		501
6.13%, 05/05/2025^(c)		1,140		1,201	Motel 6 Trust 2015-M6MZ
Owens Corning					8.23%, 02/05/2020^{(c),(e),(f),(j)}			2,814		2,843
3.40%, 08/15/2026		200		200	SCG Trust 2013-SRP1
4.20%, 12/01/2024		405		432	3.01%, 11/15/2026^(c),(j)			365		352
		$		2,429	3.76%, 11/15/2026^(c),(j)			400		387
					3.85%, 11/15/2026^(c),(j)			850		803
Chemicals - 0.29%
Albemarle Corp					Wachovia Bank Commercial Mortgage Trust
4.15%, 12/01/2024		405		437	Series 2005-C22
Hercules Inc					5.76%, 12/15/2044^(j)			26		26
6.50%, 06/30/2029		330		291	Wachovia Bank Commercial Mortgage Trust
OCP SA					Series 2006-C25
4.50%, 10/22/2025		2,850		2,914	6.01%, 05/15/2043^(c),(j)			2,300		1,429
6.88%, 04/25/2044		2,856		3,357	Wachovia Bank Commercial Mortgage Trust
Solvay Finance America LLC					Series 2007-C31
4.45%, 12/03/2025^(c)		500		542	5.84%, 04/15/2047^(j)			5,500		5,252
Westlake Chemical Corp					WFRBS Commercial Mortgage Trust 2012-
3.60%, 08/15/2026^(c)		490		490	C6
					5.77%, 04/15/2045^(c),(j)			500		516
		$		8,031
Commercial Mortgage Backed Securities - 1.33%								$		36,518
Banc of America Commercial Mortgage Trust					Commercial Services - 0.34%
2006-1					Cenveo Corp
5.88%, 09/10/2045^(c),(j)		5,536		5,343	6.00%, 08/01/2019^(c)			1,800		1,593
BLCP Hotel Trust					Constellis Holdings LLC / Constellis Finance
3.01%, 08/15/2029^(c),(j)		300		294	Corp
4.18%, 08/15/2029^(c),(j)		300		288	9.75%, 05/15/2020^(c)			1,042		1,003
BXHTL Mezzanine Trust					Corporate Risk Holdings LLC
8.67%, 05/15/2020^(e),(f),(j)		1,100		1,068	9.50%, 07/01/2019^(c)			415		392
					Team Health Inc
CCRESG Commercial Mortgage Trust 2016-					7.25%, 12/15/2023^(c)			2,467		2,689
HEAT
5.67%, 04/10/2029^(c),(j)		255		257	United Rentals North America Inc
CDGJ Commercial Mortgage Trust 2014-					4.63%, 07/15/2023			2,000		2,046
BXCH					Verisk Analytics Inc
2.36%, 12/15/2027^(c),(j)		800		799	5.50%, 06/15/2045			1,490		1,619
3.01%, 12/15/2027^(c),(j)		880		872				$		9,342


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Computers - 0.10%					Engineering & Construction - 0.01%
Diamond 1 Finance Corp / Diamond 2 Finance					Engility Corp
Corp					8.88%, 09/01/2024^(c)		$	275	$	280
5.88%, 06/15/2021^(c)	$	135	$	143
6.02%, 06/15/2026^(c)		2,310		2,472	Entertainment - 0.24%
7.13%, 06/15/2024^(c)		210		227	Codere Finance 2 Luxembourg SA
		$		2,842	9.00%, PIK 9.00%, 06/30/2021^(l)			4,500		4,635
Cosmetics & Personal Care - 0.02%					9.00%, PIK 9.00%, 06/30/2021^(c),(l)			2,000		2,060
Procter & Gamble Co/The								$		6,695
0.85%, 11/04/2016^(j)		445		445	Finance - Mortgage Loan/Banker - 1.03%
					Fannie Mae
Credit Card Asset Backed Securities - 0.23%					0.88%, 08/02/2019			5,779		5,748
American Express Credit Account Master					1.25%, 08/17/2021			1,718		1,710
Trust					2.13%, 04/24/2026			3,151		3,219
0.98%, 05/15/2019^(j)		265		265	Federal Home Loan Banks
American Express Credit Account Secured					0.88%, 08/05/2019			5,155		5,132
Note Trust 2012-4					1.13%, 07/14/2021			2,890		2,863
0.75%, 05/15/2020^(j)		835		836	Freddie Mac
American Express Issuance Trust II					0.88%, 07/19/2019			5,779		5,750
0.94%, 08/15/2019^(j)		570		572	1.13%, 08/12/2021			4,009		3,967
BA Credit Card Trust								$		28,389
0.84%, 06/15/2020^(j)		1,205		1,208	Food- 0.41	%
Capital One Multi-Asset Execution Trust					Albertsons Cos LLC / Safeway Inc / New
0.59%, 12/16/2019^(j)		1,205		1,205	Albertson's Inc / Albertson's LLC
Chase Issuance Trust					5.75%, 03/15/2025^(c)			595		616
0.56%, 08/15/2019^(j)		680		679	BRF SA
1.27%, 07/15/2021^(j)		600		599	7.75%, 05/22/2018^(c)		BRL	1,500		423
Discover Card Execution Note Trust					Cosan Luxembourg SA
0.81%, 08/17/2020^(j)		495		495	7.00%, 01/20/2027^(c)		$	4,625		4,874
0.86%, 08/17/2020^(j)		205		205	Fresh Market Inc/The
World Financial Network Credit Card Master					9.75%, 05/01/2023^(c)			4,167		3,896
Trust					JBS Investments GmbH
0.99%, 02/15/2022^(j)		165		165	7.25%, 04/03/2024^(c)			200		212
		$		6,229	JBS USA LUX SA / JBS USA Finance Inc
Diversified Financial Services - 0.47%					5.75%, 06/15/2025^(c)			600		609
Air Lease Corp					7.25%, 06/01/2021^(c)			40		41
4.25%, 09/15/2024		1,570		1,651	Marfrig Holdings Europe BV
Ally Financial Inc					8.00%, 06/08/2023^(c)			710		737
2.75%, 01/30/2017		100		100				$		11,408
3.25%, 09/29/2017		550		556	Gas- 0.03	%
4.25%, 04/15/2021		315		324	NGL Energy Partners LP / NGL Energy
4.75%, 09/10/2018		1,300		1,350	Finance Corp
5.50%, 02/15/2017		1,100		1,119	5.13%, 07/15/2019			725		680
5.75%, 11/20/2025		870		926	6.88%, 10/15/2021			130		121
Dragon Aviation Finance Luxembourg SA								$		801
4.00%, 11/28/2022^(f)		4,940		5,108
					Healthcare - Products - 0.04%
Ladder Capital Finance Holdings LLLP /					Becton Dickinson and Co
Ladder Capital Finance Corp					1.75%, 11/08/2016			1,205		1,206
5.88%, 08/01/2021^(c)		665		628
Quicken Loans Inc					Healthcare - Services - 0.04%
5.75%, 05/01/2025^(c)		1,210		1,207
					Quorum Health Corp
		$		12,969	11.63%, 04/15/2023 ^(c)			1,321		1,120
Electric - 0.24%
Duke Energy Progress LLC					Holding Companies - Diversified - 0.27%
0.88%, 03/06/2017^(j)		220		220	Alfa SAB de CV
Enel SpA					6.88%, 03/25/2044^(c)			400		445
8.75%, 09/24/2073^(c),(j)		2,170		2,534	Dubai Holding Commercial Operations MTN
Listrindo Capital BV					Ltd
6.95%, 02/21/2019		3,820		3,954	6.00%, 02/01/2017		GBP	5,300		7,047
		$		6,708				$		7,492
Electronics - 0.27%					Home Builders - 0.02%
Avnet Inc					PulteGroup Inc
4.63%, 04/15/2026		340		353	5.00%, 01/15/2027		$	600		613
Flextronics International Ltd
4.75%, 06/15/2025		790		839	Insurance - 0.11%
Keysight Technologies Inc					American International Group Inc
4.55%, 10/30/2024		2,385		2,481	3.90%, 04/01/2026			1,290		1,355
Real Alloy Holding Inc					Old Republic International Corp
10.00%, 01/15/2019 ^(c),(e)		3,650		3,696	3.88%, 08/26/2026			525		529
		$		7,369	4.88%, 10/01/2024			1,130		1,219
								$		3,103


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



			Principal							Principal
	BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)
	Internet - 0.00%						Mortgage Backed Securities (continued)
	DraftKings Inc Term Notes						Alternative Loan Trust 2004-28CB
	5.00%, 12/23/2016^(e),(f),(g)		$	27	$	27	5.75%, 01/25/2035		$	80	$	80
							Alternative Loan Trust 2004-J10
	Leisure Products & Services - 0.13%						6.00%, 09/25/2034			321		331
	LTF Merger Sub Inc						Alternative Loan Trust 2004-J3
	8.50%, 06/15/2023^(c)			3,588		3,615	5.50%, 04/25/2034			111		113
							Alternative Loan Trust 2005-14
	Lodging - 0.25%						0.73%, 05/25/2035^(j)			515		400
	Dakota Merger Sub Inc						Alternative Loan Trust 2005-J1
	7.75%, 09/01/2023^(c)			2,438		2,472	5.50%, 02/25/2025			213		217
	10.75%, 09/01/2024 ^(c)			3,194		3,138	American Home Mortgage Investment Trust
	Wyndham Worldwide Corp						2005-2
	5.10%, 10/01/2025			1,105		1,219	0.82%, 09/25/2045^(j)			226		186
				$		6,829	Banc of America Alternative Loan Trust 2003-
	Machinery - Construction & Mining - 0.06%						8
	Caterpillar Financial Services Corp						5.50%, 10/25/2033			137		140
	0.91%, 03/03/2017^(j)			530		530	Banc of America Alternative Loan Trust 2004-
	1.52%, 02/23/2018^(j)			1,200		1,210	6
				$		1,740	6.00%, 07/25/2034			666		697
	Machinery - Diversified - 0.06%						Banc of America Alternative Loan Trust 2005-
	Cloud Crane LLC						6
	10.13%, 08/01/2024 ^(c)			1,240		1,287	5.25%, 07/25/2035^(j)			192		175
	Xerium Technologies Inc						Banc of America Funding 2004-B Trust
	9.50%, 08/15/2021^(c)			243		249	2.80%, 11/20/2034^(j)			225		209
				$		1,536	Banc of America Funding 2005-5 Trust
	Media- 0.43	%					5.50%, 09/25/2035			78		81
	Cablevision SA/Argentina						Banc of America Funding 2005-7 Trust
	6.50%, 06/15/2021^(c)			365		381	5.75%, 11/25/2035^(j)			151		155
	Cox Communications Inc						Banc of America Funding 2007-4 Trust
	4.50%, 06/30/2043^(c)			765		688	5.50%, 11/25/2034			226		224
	4.70%, 12/15/2042^(c)			380		352	Banc of America Mortgage 2005-A Trust
							2.96%, 02/25/2035^(j)			63		62
	DISH DBS Corp
	5.88%, 11/15/2024			615		607	BCAP LLC Trust 2007-AA2
	Globo Comunicacao e Participacoes SA						6.00%, 03/25/2022			315		311
	4.84%, 06/08/2025^(j)			5,363		5,537	Bear Stearns ARM Trust 2004-6
							5.14%, 09/25/2034^(j)			863		791
	Grupo Televisa SAB
	7.25%, 05/14/2043		MXN	4,370		202	Bear Stearns ARM Trust 2005-12
							2.89%, 02/25/2036^(j)			383		297
	NBCUniversal Enterprise Inc
	5.25%, 12/19/2049^(c),(i)		$	1,205		1,277	CHL Mortgage Pass-Through Trust 2004-12
							3.35%, 08/25/2034^(j)			134		115
	Time Warner Cable Inc
	4.50%, 09/15/2042			645		624	CHL Mortgage Pass-Through Trust 2004-
							HYB4
	WideOpenWest Finance LLC /						3.08%, 09/20/2034^(j)			66		63
	WideOpenWest Capital Corp
	10.25%, 07/15/2019 ^(e)			1,950		2,052	CHL Mortgage Pass-Through Trust 2004-
				$		11,720	HYB8
							3.13%, 01/20/2035^(j)			110		105
	Metal Fabrication & Hardware - 0.12%
							CHL Mortgage Pass-Through Trust 2005-11
	Wise Metals Group LLC / Wise Alloys						0.79%, 04/25/2035^(j)			120		94
	Finance Corp
	8.75%, 12/15/2018^(c)			2,658		2,738	CHL Mortgage Pass-Through Trust 2005-21
							5.50%, 10/25/2035^(j)			158		143
	Zekelman Industries Inc
	9.88%, 06/15/2023^(c)			655		701	Citigroup Mortgage Loan Trust 2005-3
							2.99%, 08/25/2035^(j)			883		818
				$		3,439
							Citigroup Mortgage Loan Trust 2014-11
	Mining - 0.19%						0.63%, 08/25/2036^(c),(j)			948		826

	AngloGold Ashanti Holdings PLC						Citigroup Mortgage Loan Trust 2015-2
	5.13%, 08/01/2022			2,000		2,080	0.69%, 06/25/2047^(c),(j)			841		725
	5.38%, 04/15/2020			3,000		3,152
							Citigroup Mortgage Loan Trust Inc
				$		5,232	2.96%, 05/25/2035^(j)			114		106
	Miscellaneous Manufacturers - 0.09%						CitiMortgage Alternative Loan Trust Series
	GE Accounts Receivable Funding Master						2006	-A4
	6.99%, 08/24/2017^(e),(f),(j)			2,400		2,400
							6.00%, 09/25/2036			280		250
							Credit Suisse First Boston Mortgage Securities
	Mortgage Backed Securities - 1.58%						Corp
							2.84%, 11/25/2033^(j)			102		98
	Adjustable Rate Mortgage Trust 2004-4
	3.02%, 03/25/2035(j)			108		104	2.89%, 12/25/2033^(j)			72		71
	Alliance Bancorp Trust 2007-OA1						5.25%, 11/25/2020			571		561
	0.76%, 07/25/2037^(j)			1,188		860
							5.50%, 11/25/2035			182		164
	Alternative Loan Trust 2003-20CB						5.75%, 11/25/2033			62		64
	5.75%, 10/25/2033			108		112	CSFB Mortgage-Backed Trust Series 2004-
							AR4
	Alternative Loan Trust 2003-9T1
	5.50%, 07/25/2033(j)			93		92	3.00%, 05/25/2034^(j)			275		258
	Alternative Loan Trust 2004-14T2
	5.50%, 08/25/2034			105		109


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Mortgage Backed Securities (continued)						Mortgage Backed Securities (continued)
Deutsche Alt-A Securities Inc Mortgage Loan						MASTR Alternative Loan Trust 2004-8
Trust Series 2005-5						6.00%, 09/25/2034		$	494	$	510
5.50%, 11/25/2035		$	112	$	105	Merrill Lynch Alternative Note Asset Trust
Deutsche Alt-A Securities Inc Mortgage Loan						Series 2007-F1
Trust Series 2005-6						6.00%, 03/25/2037			151		118
5.50%, 12/25/2035^(j)			125		109	Merrill Lynch Mortgage Investors Trust Series
DSLA Mortgage Loan Trust 2005-AR5						MLCC 2006-1
0.84%, 09/19/2045^(j)			227		164	2.97%, 02/25/2036^(j)			1,034		948
Fannie Mae Connecticut Avenue Securities						Merrill Lynch Mortgage Investors Trust Series
6.07%, 04/25/2028^(j)			5,000		5,386	MLCC 2006-2
6.52%, 09/25/2028^(j)			750		821	2.58%, 05/25/2036^(j)			58		56
Fannie Mae Interest Strip						Merrill Lynch Mortgage Investors Trust Series
4.00%, 11/25/2040^(k)			19,546		2,768	MLCC 2007-1
Freddie Mac Structured Agency Credit Risk						2.96%, 01/25/2037^(j)			133		124
Debt Notes						National City Mortgage Capital Trust
2.17%, 04/25/2024^(j)			500		504	6.00%, 03/25/2038^(j)			647		672
2.37%, 10/25/2027^(j)			550		557	Newgate Funding 2007-3
2.72%, 02/25/2024^(j)			500		513	0.34%, 12/15/2050^(j)		EUR	170		179
4.77%, 11/25/2023^(j)			250		261	RALI Series 2006-QO4 Trust
9.32%, 03/25/2028^(j)			7,000		6,720	0.71%, 04/25/2046^(j)		$	244		197
9.87%, 04/25/2028^(j)			1,000		1,000	RALI Series 2006-QO7 Trust
GMACM Mortgage Loan Trust 2005-AR4						0.73%, 09/25/2046^(j)			114		84
3.56%, 07/19/2035^(j)			119		108	RALI Series 2007-QO4 Trust
GSR Mortgage Loan Trust 2004-14						0.71%, 05/25/2047^(j)			185		145
2.93%, 12/25/2034^(j)			154		153	Residential Asset Securitization Trust 2005-
GSR Mortgage Loan Trust 2005-4F						A8	CB
6.50%, 02/25/2035			140		140	5.38%, 07/25/2035			376		333
Harborview Mortgage Loan Trust						RFMSI Series 2006-S1 Trust
0.88%, 10/19/2033^(j)			1,033		964	5.75%, 01/25/2036			137		136
HarborView Mortgage Loan Trust 2006-10						Rmac 2005-Ns3 PLC
0.69%, 11/19/2036^(j)			406		335	0.10%, 06/12/2043^(j)		EUR	57		59
HarborView Mortgage Loan Trust 2006-7						RMAC Securities No 1 PLC
0.71%, 09/19/2046^(j)			111		81	0.00%, 06/12/2044^(b),(j)			110		112
IndyMac INDX Mortgage Loan Trust 2005-						Structured Adjustable Rate Mortgage Loan
AR11						Trust
2.94%, 08/25/2035^(j)			954		786	0.83%, 07/25/2035^(j)		$	857		636
IndyMac INDX Mortgage Loan Trust 2005-						3.17%, 09/25/2034^(j)			397		394
AR16	IP					Structured Adjustable Rate Mortgage Loan
1.16%, 07/25/2045^(j)			274		224	Trust Series 2004-6
JP Morgan Alternative Loan Trust						2.86%, 06/25/2034^(j)			176		173
2.77%, 03/25/2036^(j)			789		653	Structured Asset Securities Corp Mortgage
2.85%, 03/25/2036^(j)			25		18	Pass-Through Certificates Series 2004-20
JP Morgan Mortgage Trust 2005-A2						5.75%, 11/25/2034			127		129
2.76%, 04/25/2035^(j)			228		219	Structured Asset Securities Corp Trust 2005-
JP Morgan Mortgage Trust 2005-S3						1
6.00%, 01/25/2036^(j)			290		248	5.50%, 02/25/2035			177		180
JP Morgan Mortgage Trust 2006-A1						WaMu Mortgage Pass-Through Certificates
2.89%, 02/25/2036^(j)			199		175	Series 2004-CB2 Trust
JP Morgan Mortgage Trust 2006-A7						5.50%, 07/25/2034			64		66
2.82%, 01/25/2037^(j)			354		314	WaMu Mortgage Pass-Through Certificates
JP Morgan Mortgage Trust 2007-S1						Series 2006-AR19 Trust
5.75%, 03/25/2037			268		220	1.94%, 01/25/2047^(j)			858		767
Lehman XS Trust Series 2005-7N						WaMu Mortgage Pass-Through Certificates
0.80%, 12/25/2035^(j)			101		76	Series 2007-HY5 Trust
Lehman XS Trust Series 2006-4N						2.29%, 05/25/2037^(j)			653		540
0.74%, 04/25/2046^(j)			945		755	Washington Mutual Mortgage Pass-Through
Ludgate Funding PLC						Certificates WMALT Series 2006-2 Trust
0.00%, 01/01/2061^(b),(j)		EUR	118		120	6.00%, 03/25/2036^(j)			138		127
MASTR Adjustable Rate Mortgages Trust						Wedgewood Real Estate Trust 2016-1
2004-7						5.00%, 07/15/2046^(c)			185		184
2.86%, 07/25/2034^(j)		$	259		250	Wells Fargo Mortgage Backed Securities
MASTR Adjustable Rate Mortgages Trust						2003-M Trust
2005-2						2.79%, 12/25/2033^(j)			288		289
3.02%, 03/25/2035^(j)			737		572	Wells Fargo Mortgage Backed Securities
MASTR Adjustable Rate Mortgages Trust						2005-11 Trust
2006-2						5.50%, 11/25/2035			40		41
3.06%, 04/25/2036^(j)			176		160	Wells Fargo Mortgage Backed Securities
MASTR Alternative Loan Trust 2003-9						2005-16 Trust
5.25%, 11/25/2033			90		92	6.00%, 01/25/2036^(j)			165		163
MASTR Alternative Loan Trust 2004-5						Wells Fargo Mortgage Backed Securities
5.50%, 06/25/2034			92		94	2005-AR10 Trust
6.00%, 06/25/2034			110		113	2.93%, 05/01/2035^(j)			93		97


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



		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)
Wells Fargo Mortgage Backed Securities					Parsley Energy LLC / Parsley Finance
Trust					Corp (continued)
2.99%, 08/25/2034^(j)	$	131	$	133	7.50%, 02/15/2022^(c)		$	105	$	111
		$		43,577	Petrobras Global Finance BV
Municipals - 0.15%					3.75%, 01/14/2021		EUR	3,290		3,505
Provincia de Mendoza Argentina					5.38%, 01/27/2021		$	2,015		1,942
8.38%, 05/19/2024^(c)		3,990		4,199	6.25%, 12/14/2026		GBP	1,000		1,195
					8.38%, 05/23/2021^(m)		$	11,700		12,589
Oil & Gas - 2.14%					8.75%, 05/23/2026			425		466
Anadarko Petroleum Corp					Petroleos de Venezuela SA
4.50%, 07/15/2044		35		32	6.00%, 11/15/2026			5,500		1,994
Antero Resources Corp					Petroleos Mexicanos
5.13%, 12/01/2022		495		489	7.65%, 11/24/2021^(c),(j)		MXN	6,500		336
5.38%, 11/01/2021		65		65	RSP Permian Inc
Baytex Energy Corp					6.63%, 10/01/2022		$	1,665		1,732
5.13%, 06/01/2021^(c)		35		29	Sabine Oil & Gas Corp
5.63%, 06/01/2024^(c)		205		166	0.00%, 06/15/2019^(b)			300		1
Bonanza Creek Energy Inc					Shell International Finance BV
0.00%, 04/15/2021^(b)		55		25	1.03%, 11/15/2016^(j)			455		455
0.00%, 02/01/2023^(b)		210		90	SM Energy Co
BP Capital Markets PLC					5.00%, 01/15/2024			385		352
1.21%, 11/07/2016^(j)		385		385	6.13%, 11/15/2022			425		413
1.24%, 02/13/2018^(j)		255		255	Tengizchevroil Finance Co International Ltd
California Resources Corp					4.00%, 08/15/2026^(c)			2,500		2,492
5.50%, 09/15/2021		18		9	Transocean Inc
6.00%, 11/15/2024		89		43	9.00%, 07/15/2023^(c)			1,139		1,096
8.00%, 12/15/2022^(c)		265		179	Western Refining Logistics LP / WNRL
Chesapeake Energy Corp					Finance Corp
4.88%, 04/15/2022		635		486	7.50%, 02/15/2023			395		405
6.13%, 02/15/2021		35		29	Whiting Petroleum Corp
6.63%, 08/15/2020		25		22	5.00%, 03/15/2019			90		83
Concho Resources Inc					YPF SA
5.50%, 04/01/2023		985		1,017	31.35%, 07/07/2020 ^(c),(j)			410		453
ConocoPhillips					Zhaikmunai LLP
6.50%, 02/01/2039		220		289	6.38%, 02/14/2019			6,421		5,973
Continental Resources Inc/OK								$		59,031
3.80%, 06/01/2024		280		253	Other Asset Backed Securities - 1.43%
4.50%, 04/15/2023		135		127	AIM Aviation Finance Ltd
5.00%, 09/15/2022		2,890		2,796	5.07%, 02/15/2040^(c),(j)			1,325		1,279
Delek & Avner Tamar Bond Ltd					Ajax Mortgage Loan Trust 2016-B
5.41%, 12/30/2025^(c)		5,200		5,642	4.00%, 09/25/2065^(c)			425		424
Devon Energy Corp					American Homes 4 Rent 2014-SFR1
5.00%, 06/15/2045		350		336	3.01%, 06/17/2031^(c),(j)			645		632
Genel Energy Finance PLC					American Homes 4 Rent 2014-SFR2 Trust
7.50%, 05/14/2019^(c)		4,400		3,476	5.15%, 10/17/2036^(c),(j)			280		307
Halcon Resources Corp					6.23%, 10/17/2036^(c),(j)			695		761
8.63%, 02/01/2020^(c)		380		361	American Homes 4 Rent 2014-SFR3 Trust
Matador Resources Co					6.42%, 12/17/2036^(c),(j)			900		999
6.88%, 04/15/2023		957		988	American Homes 4 Rent 2015-SFR1
MEG Energy Corp					5.64%, 04/17/2052^(c),(j)			1,045		1,101
6.38%, 01/30/2023^(c)		295		230	AMMC CLO 17 Ltd
6.50%, 03/15/2021^(c)		40		33	7.57%, 11/15/2027^(c),(e),(j)			2,500		2,357
7.00%, 03/31/2024^(c)		485		390	AMMC CLO 18 Ltd
Midstates Petroleum Co Inc / Midstates					7.34%, 05/26/2028^(c),(e),(j)			1,750		1,634
Petroleum Co LLC					Apidos CLO XXII
0.00%, 06/01/2020^(b)		1,471		986	6.70%, 10/20/2027^(c),(e),(j)			750		698
Noble Energy Inc					Avery Point VII CLO Ltd
5.05%, 11/15/2044		225		225	7.28%, 01/15/2028^(c),(e),(j)			1,400		1,318
Noble Holding International Ltd					8.68%, 01/15/2028^(c),(e),(j)			1,050		840
5.25%, 03/15/2042		835		493	Bayview Opportunity Master Fund IIa Trust
Oasis Petroleum Inc					2016-RP	L3
6.88%, 03/15/2022		300		279	3.47%, 07/28/2031^(c),(j)			200		200
Odebrecht Offshore Drilling Finance Ltd					BlueMountain CLO 2013-4 Ltd
6.75%, 10/01/2023^(c)		2,169		325	6.33%, 04/15/2025^(c),(e),(j)			3,000		2,074
6.75%, 10/01/2023		12,360		1,854	Bowman Park CLO Ltd
OGX Austria GmbH					6.22%, 11/23/2025^(c),(e),(j)			1,000		908
0.00%, 06/01/2018^(b),(c),(e)		600		—	CAM Mortgage LLC 2015-1
0.00%, 04/01/2022^(b),(c),(e)		1,100		—	3.50%, 07/15/2064^(c)			376		376
Pacific Exploration and Production Corp					CAM Mortgage Trust 2016-1
0.00%, 01/26/2019^(b),(c)		690		121	4.00%, 01/15/2056^(c),(j)			232		230
0.00%, 03/28/2023^(b),(c)		2,270		397	5.00%, 01/15/2056^(c),(j)			545		527
Parsley Energy LLC / Parsley Finance Corp					CLI Funding V LLC
6.25%, 06/01/2024^(c)		500		516	3.38%, 10/18/2029^(c)			571		553


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



			Principal					Principal
BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Other Asset Backed Securities (continued)						Other Asset Backed Securities (continued)
Colony American Finance 2015-1 Ltd						VOLT XXXIV LLC
5.65%, 10/15/2047^(c)		$	550	$	555	3.25%, 02/25/2055^(c)		$	75	$	75
Colony American Finance 2016-1 Ltd									$		39,292
4.64%, 06/15/2048^(c),(j)			260		264	Pharmaceuticals - 0.53%
Colony American Homes 2014-1						Actavis Funding SCS
2.36%, 05/17/2031^(c),(j)			290		288	1.55%, 09/01/2016^(j)			1,035		1,035
Colony American Homes 2014-2						Endo Ltd / Endo Finance LLC / Endo Finco
3.72%, 07/17/2031^(c),(j)			1,000		968	Inc
Cronos Containers Program I Ltd						6.50%, 02/01/2025^(c),(j)			2,000		1,775
3.27%, 11/18/2029^(c)			834		803	Express Scripts Holding Co
GCA2014 Holdings Ltd - Class C						4.50%, 02/25/2026			1,320		1,459
6.00%, 01/05/2030^{(c),(e),(f),(j)}			580		446	Johnson & Johnson
GCA2014 Holdings Ltd - Class D						0.90%, 11/28/2016^(j)			430		430
7.50%, 01/05/2030^{(c),(e),(f),(j)}			227		141	Teva Pharmaceutical Finance Netherlands III
GCA2014 Holdings Ltd - Class E						BV
0.00%, 01/05/2030^{(b),(c),(e),(f),(j)}			1,030		144	3.15%, 10/01/2026			500		503
Global Container Assets Ltd						Valeant Pharmaceuticals International Inc
4.50%, 02/05/2030^(c),(j)			368		352	4.50%, 05/15/2023^(c)		EUR	1,340		1,241
Invitation Homes 2014-SFR1 Trust						5.50%, 03/01/2023^(c)		$	770		672
2.01%, 06/17/2031^(c),(j)			895		893	5.63%, 12/01/2021^(c)			275		248
Invitation Homes 2015-SFR1 Trust						5.88%, 05/15/2023^(c)			3,300		2,904
4.71%, 03/17/2032^(c),(j)			280		283	6.13%, 04/15/2025^(c)			5,000		4,394
Kabbage Funding 2014-1 Resecuritization									$		14,661
Trust						Pipelines - 0.40%
10.51%, 03/08/2018 ^{(c),(e),(f),(j)}			4,786		4,450
						Crestwood Midstream Partners LP /
Magnetite IX Ltd						Crestwood Midstream Finance Corp
6.46%, 07/25/2026^(c),(e),(j)			1,750		1,242
						6.13%, 03/01/2022			485		472
NYMT Residential 2016-RP1						Energy Transfer Partners LP
4.00%, 03/25/2021^(c),(j)			270		270	5.15%, 03/15/2045			100		96
Oak Hill Advisors Residential Loan Trust						6.13%, 12/15/2045			1,275		1,369
2015-NP	L2					EnLink Midstream Partners LP
3.72%, 07/25/2055^(c),(j)			491		487	5.05%, 04/01/2045			340		295
OneMain Financial Issuance Trust 2014-2						5.60%, 04/01/2044			200		185
2.47%, 09/18/2024^(c)			117		117
3.02%, 09/18/2024^(c),(j)			130		130	Enterprise Products Operating LLC
						3.70%, 02/15/2026			160		167
5.31%, 09/18/2024^(c),(j)			1,210		1,192
						Kinder Morgan Energy Partners LP
OneMain Financial Issuance Trust 2015-1						3.45%, 02/15/2023			140		139
3.19%, 03/18/2026^(c),(j)			220		222
						3.50%, 09/01/2023			200		198
OneMain Financial Issuance Trust 2015-3						4.70%, 11/01/2042			285		263
4.16%, 11/20/2028^(c),(j)			790		774	5.00%, 08/15/2042			710		687
OneMain Financial Issuance Trust 2016-2						5.00%, 03/01/2043			60		58
5.94%, 03/20/2028^(c)			720		749
						5.63%, 09/01/2041			440		450
RCO Depositor II LLC						MPLX LP
4.50%, 11/25/2045^(c),(j)			509		508
						4.00%, 02/15/2025			115		112
5.00%, 11/25/2045^(c)			800		764	4.50%, 07/15/2023^(c)			190		192
Rise Ltd						4.88%, 12/01/2024^(c)			1,080		1,105
4.75%, 02/15/2039^(e),(j)			422		417
						Plains All American Pipeline LP / PAA
Shenton Aircraft Investment I Ltd						Finance Corp
4.75%, 10/15/2042^(c)			1,175		1,158	4.90%, 02/15/2045			745		686
Sierra Timeshare 2012-1 Receivables Funding						Sabine Pass Liquefaction LLC
LLC						5.63%, 03/01/2025			1,030		1,089
2.84%, 11/20/2028^(c)			20		20	Targa Resources Partners LP / Targa
Sierra Timeshare 2013-1 Receivables Funding						Resources Partners Finance Corp
LLC						4.25%, 11/15/2023			35		34
1.59%, 11/20/2029^(c),(j)			93		92	5.25%, 05/01/2023			135		137
Sierra Timeshare 2013-3 Receivables Funding						6.38%, 08/01/2022			210		217
LLC						6.75%, 03/15/2024^(c)			1,190		1,264
2.20%, 10/20/2030^(c),(j)			210		210	Williams Partners LP
TAL Advantage V LLC						3.90%, 01/15/2025			240		239
3.55%, 11/20/2038^(c),(j)			381		374
						4.00%, 09/15/2025			925		926
THL Credit Wind River 2014-3 CLO Ltd						5.10%, 09/15/2045			250		245
6.30%, 01/22/2027^(c),(e),(j)			3,000		2,697
						6.30%, 04/15/2040			470		513
US Residential Opportunity Fund III Trust									$		11,138
2016-1						Real Estate - 0.49%
3.47%, 07/27/2036^(c)			195		195
						MAF Global Securities Ltd
VOLT XL LLC						7.13%, 10/29/2049^(i),(j)			10,500		11,222
4.88%, 11/27/2045^(c)			320		305
						Rialto Holdings LLC / Rialto Corp
VOLT XLVIII LLC						7.00%, 12/01/2018^(c)			2,238		2,271
3.50%, 07/25/2046^(c)			195		195
									$		13,493
VOLT XXXI LLC
3.38%, 02/25/2055^(c),(j)			294		294	REITS- 0.35	%
						Brixmor Operating Partnership LP
						3.85%, 02/01/2025			1,000		1,020


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
REITS (continued)					Sovereign (continued)
Brixmor Operating Partnership					Serbia International Bond
LP (continued)					4.88%, 02/25/2020	$	11,150	$	11,596
4.13%, 06/15/2026	$	235	$	244	5.25%, 11/21/2017^(c)		3,950		4,082
Communications Sales & Leasing Inc / CSL					Slovenia Government International Bond
Capital LLC					5.50%, 10/26/2022		20,487		23,672
8.25%, 10/15/2023		4,000		4,170	Spain Letras del Tesoro
Healthcare Realty Trust Inc					0.00%, 10/14/2016^(b)	EUR	5,260		5,870
3.88%, 05/01/2025		690		708	0.00%, 11/18/2016^(b)		6,400		7,144
Host Hotels & Resorts LP					Venezuela Government International Bond
5.25%, 03/15/2022		265		292	7.65%, 04/21/2025	$	5,000		2,140
Trust F/1401							$		217,075
5.25%, 01/30/2026^(c)		2,900		3,096	Student Loan Asset Backed Securities - 0.06%
		$		9,530	SoFi Professional Loan Program 2014-B
Savings & Loans - 0.02%					LLC
Flagstar Bancorp Inc					1.77%, 08/25/2032^(c),(j)		80		80
6.13%, 07/15/2021^(c)		677		691	SoFi Professional Loan Program 2015-A
					LLC
Software - 0.12%					1.72%, 03/25/2033^(c),(j)		506		506
Cengage Learning Inc					SoFi Professional Loan Program 2015-C
9.50%, 06/15/2024^(c)		750		767	LLC
Open Text Corp					3.58%, 08/25/2036^(c),(j)		150		151
5.88%, 06/01/2026^(c)		1,290		1,351	Sofi Professional Loan Program 2016-A LLC
Oracle Corp					3.57%, 01/26/2038^(c),(j)		810		813
0.86%, 07/07/2017^(j)		1,075		1,077			$		1,550
		$		3,195	Supranational Bank - 1.06%
Sovereign - 7.88%					African Export-Import Bank
1MDB Global Investments Ltd					3.88%, 06/04/2018^(m)		10,000		10,229
4.40%, 03/09/2023		13,200		11,221	Banque Ouest Africaine de Developpement
Banco Nacional de Desenvolvimento					5.50%, 05/06/2021^(c)		8,530		8,999
Economico e Social					5.50%, 05/06/2021^(m)		2,000		2,110
3.63%, 01/21/2019	EUR	5,000		5,706	Black Sea Trade & Development Bank
Brazil Minas SPE via State of Minas Gerais					4.88%, 05/06/2021^(c),(m)		6,400		6,809
5.33%, 02/15/2028^(j)	$	13,800		13,317	International Bank for Reconstruction &
Brazil Notas do Tesouro Nacional Serie F					Development
10.00%, 01/01/2025	BRL	32,000		8,937	1.38%, 05/24/2021		1,035		1,034
10.00%, 01/01/2017		8,000		2,447			$		29,181
Costa Rica Government International Bond					Telecommunications - 1.00%
4.38%, 04/30/2025^(c)	$	4,671		4,589	Alcatel-Lucent USA Inc
Croatia Government International Bond					6.45%, 03/15/2029		915		995
3.00%, 03/11/2025	EUR	7,542		8,404	6.50%, 01/15/2028		385		414
Gabon Government International Bond					Digicel Group Ltd
6.38%, 12/12/2024	$	3,750		3,477	7.13%, 04/01/2022		4,700		3,807
6.95%, 06/16/2025		2,900		2,712	Digicel Ltd
Ghana Government International Bond					6.00%, 04/15/2021		9,800		8,955
7.88%, 08/07/2023^(c)		2,887		2,660	Goodman Networks Inc
8.13%, 01/18/2026^(c)		400		368	12.13%, 07/01/2018		1,807		894
Honduras Government International Bond					GTH Finance BV
8.75%, 12/16/2020		3,780		4,375	6.25%, 04/26/2020^(c)		8,250		8,663
Hungary Government International Bond					Intelsat Jackson Holdings SA
5.75%, 11/22/2023		12,900		15,036	8.00%, 02/15/2024^(c)		2,420		2,429
Indonesia Treasury Bond					Oi SA
7.88%, 04/15/2019	IDR 71,500,000			5,541	0.00%, 09/15/2016^(b),(c)	BRL	1,475		85
Iraq International Bond					Verizon Communications Inc
5.80%, 01/15/2028^(e)	$	8,800		7,117	2.41%, 09/14/2018^(j)	$	1,170		1,203
Italy Buoni Ordinari del Tesoro BOT							$		27,445
0.00%, 10/14/2016^(b)	EUR	5,260		5,870
					Textiles - 0.06%
KazAgro National Management Holding JSC					Springs Industries Inc
3.26%, 05/22/2019		6,650		7,269	6.25%, 06/01/2021^(e)		1,562		1,626
4.63%, 05/24/2023	$	3,350		3,199
Kenya Government International Bond					TOTAL BONDS		$		735,798
6.88%, 06/24/2024		5,500		5,370		Principal
Malaysia Government Bond					CONVERTIBLE BONDS - 2.20%	Amount (000's) Value (000's)
4.25%, 05/31/2035	MYR	50,000		12,522	Automobile Parts & Equipment - 0.02%
Montenegro Government International Bond
3.88%, 03/18/2020^(c)	EUR	11,775		12,941	Meritor Inc
					7.88%, 03/01/2026		325		440
Poland Government Bond
4.75%, 04/25/2017	PLN	9,125		2,383	Biotechnology - 0.07%
Portugal Treasury Bill
					Acorda Therapeutics Inc
0.00%, 09/23/2016(b)	EUR	5,260		5,868	1.75%, 06/15/2021^(a)		875		740
0.00%, 11/18/2016^(b)		6,400		7,140
					Ionis Pharmaceuticals Inc
Romanian Government International Bond					1.00%, 11/15/2021		785		677
6.13%, 01/22/2044	$	3,050		4,102


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



			Principal							Principal
	CONVERTIBLE BONDS (continued)		Amount (000's) Value (000's)				CONVERTIBLE BONDS (continued)			Amount (000's) Value (000's)
	Biotechnology (continued)						Oil & Gas (continued)
	Medicines Co/The						Chesapeake Energy Corp
	2.50%, 01/15/2022		$	425	$	562	2.50%, 05/15/2037		$	490	$	487
				$		1,979	Cobalt International Energy Inc
	Coal- 0.00	%					2.63%, 12/01/2019			1,000		456
	Alpha Natural Resources Inc						Whiting Petroleum Corp
	0.00%, 12/15/2020^(b)			100		1	1.25%, 06/05/2020			221		190
							1.25%, 06/05/2020			1,986		1,706
	Diversified Financial Services - 0.02%									$		3,302
	Element Financial Corp						Pharmaceuticals - 0.03%
	5.13%, 06/30/2019^(c)		CAD	725		608	Herbalife Ltd
							2.00%, 08/15/2019			900		893
	Electric - 0.03%
	NRG Yield Inc						REITS- 0.11	%
	3.25%, 06/01/2020^(c)		$	225		220	Colony Capital Inc
	3.50%, 02/01/2019^(c)			650		652	3.88%, 01/15/2021			625		613
				$		872	Redwood Trust Inc
	Electrical Components & Equipment - 0.02%						4.63%, 04/15/2018			85		85
	General Cable Corp						Spirit Realty Capital Inc
	4.50%, 11/15/2029^(a),(j)			75		53	2.88%, 05/15/2019			825		911
	SunPower Corp						3.75%, 05/15/2021			150		170
	0.75%, 06/01/2018			575		520	Starwood Property Trust Inc
				$		573	3.75%, 10/15/2017			225		232
	Electronics - 0.04%						4.55%, 03/01/2018			875		962
	TTM Technologies Inc									$		2,973
	1.75%, 12/15/2020			550		687	Semiconductors - 1.04%
	Vishay Intertechnology Inc						Cypress Semiconductor Corp
	2.25%, 11/15/2040			300		335	4.50%, 01/15/2022^(c)			195		217
				$		1,022	Intel Corp
	Energy - Alternate Sources - 0.01%						3.25%, 08/01/2039			3,501		6,123
	SunEdison Inc						Microchip Technology Inc
	0.00%, 10/01/2018^(b)			400		26	2.13%, 12/15/2037			600		1,546
	0.00%, 01/15/2020^(b),(c)			1,425		93	Micron Technology Inc
	0.00%, 01/01/2021^(b)			725		47	3.13%, 05/01/2032			300		535
				$		166	Novellus Systems Inc
	Healthcare - Services - 0.17%						2.63%, 05/15/2041			3,708		10,183
	Anthem Inc						NVIDIA Corp
	2.75%, 10/15/2042^(a)			2,450		4,281	1.00%, 12/01/2018			3,225		9,810
	Brookdale Senior Living Inc						ON Semiconductor Corp
	2.75%, 06/15/2018			310		310	2.63%, 12/15/2026			300		328
				$		4,591				$		28,742
	Holding Companies - Diversified - 0.01%						Telecommunications - 0.09%
	RWT Holdings Inc						CalAmp Corp
	5.63%, 11/15/2019			185		188	1.63%, 05/15/2020			10		9
							Ciena Corp
							3.75%, 10/15/2018^(c)			475		596
	Home Builders - 0.01%
	CalAtlantic Group Inc						Palo Alto Networks Inc
							0.00%, 07/01/2019^(b)			1,225		1,640
	0.25%, 06/01/2019			205		191
							Viavi Solutions Inc
	Internet - 0.13%						0.63%, 08/15/2033			330		331
	LinkedIn Corp									$		2,576
	0.50%, 11/01/2019			665		660	Transportation - 0.02%
	VeriSign Inc						Ship Finance International Ltd
	4.48%, 08/15/2037^(j)			1,325		2,882	3.25%, 02/01/2018			600		642
				$		3,542
	Investment Companies - 0.15%						TOTAL CONVERTIBLE BONDS			$		60,474
	Aabar Investments PJSC						SENIOR FLOATING RATE INTERESTS -			Principal
	1.00%, 03/27/2022		EUR	5,500		4,181	2.68	%		Amount (000's) Value (000's)
							Advertising - 0.15%
	Media- 0.10	%					Affinion Group Inc, Term Loan B
	DISH Network Corp						6.75%, 04/30/2018^(j)		$	2,636	$	2,538
	3.38%, 08/15/2026^(c)		$	2,575		2,686	Polyconcept North America Holdings Inc,
	Liberty Media Corp						Term Loan B
	2.25%, 09/30/2046^(c)			180		185	6.25%, 08/10/2023^(j)			1,500		1,500
				$		2,871				$		4,038
	Miscellaneous Manufacturers - 0.01%						Aerospace & Defense - 0.04%
	Trinity Industries Inc						CAMP International Holding Co, Term Loan
	3.88%, 06/01/2036			100		121	0.00%, 08/11/2023^(j),(n)			1,000		993

	Oil & Gas - 0.12%						Agriculture - 0.01%
	Cheniere Energy Inc						Pinnacle Operating Corp, Term Loan B
	4.25%, 03/15/2045			750		463	4.75%, 11/14/2018^(j)			164		151


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



	SENIOR FLOATING RATE INTERESTS			Principal			SENIOR FLOATING RATE INTERESTS		Principal
	(continued)			Amount (000's) Value (000's)			(continued)		Amount (000's) Value (000's)
	Automobile Manufacturers - 0.05%						Environmental Control - 0.05%
	CH Hold Corp, Term Loan						USS Parent Holding Corp, Term Loan
	6.25%, 11/20/2019^(j)		$	1,496	$	1,489	5.50%, 08/10/2023^(j)		$	1,308	$	1,307

	Automobile Parts & Equipment - 0.05%						Food- 0.15	%
	Inteva Products LLC						Amplify Snack Brands Inc, Term Loan
	0.00%, 08/31/2021^(j),(n)			1,500		1,485	0.00%, 08/24/2023^(j),(n)			1,500		1,487
							ASP MSG Acquisition Co Inc, Term Loan
	Building Materials - 0.02%						0.00%, 08/04/2023^(j),(n)			1,000		1,001
	Headwaters Inc, Term Loan B1						US Foods Inc, Term Loan B
	4.00%, 03/24/2022^(j)			445		445	4.00%, 06/15/2023^(j)			1,500		1,507
										$		3,995
	Chemicals - 0.04%						Forest Products & Paper - 0.04%
	Vantage Specialties Inc, Term Loan B						Verso Paper Holdings LLC, Term Loan
	5.50%, 02/10/2019^(j)			1,000		993	EXIT
							12.00%, 09/24/2021 ^(j)			1,000		970
	Coal- 0.05	%
	Gulf Finance LLC, Term Loan						Healthcare - Services - 0.02%
	0.00%, 08/17/2023^(j),(n)			1,500		1,453	21st Century Oncology Inc, Term Loan B
							0.00%, 04/30/2022^(j),(n)			495		470
	Commercial Services - 0.23%
	Allied Universal Holdco LLC, Term Loan						Holding Companies - Diversified - 0.05%
	4.75%, 07/27/2022^(j)			960		941	Travelport Finance Luxembourg Sarl, Term
	Corporate Risk Holdings LLC, Term Loan B						Loan B
	8.25%, 07/01/2019^(j)			4,142		3,873	5.00%, 09/02/2021^(j)			1,496		1,497
	Oasis Outsourcing Holdings Inc, Term Loan
	5.75%, 12/21/2027^(j)			1,500		1,504	Insurance - 0.13%
				$		6,318	Alliant Holdings Intermediate LLC, Term
	Computers - 0.08%						Loan B2
	Everi Payments Inc, Term Loan B						5.00%, 08/14/2022^(j)			223		223
	0.00%, 12/18/2020^(j),(n)			255		242	Asurion LLC, Term Loan
	Sybil Software LLC, Term Loan B						0.00%, 08/10/2021^(j),(n)			2,500		2,487
	0.00%, 08/03/2022^(j),(n)			1,500		1,502	0.00%, 08/10/2021^(j),(n)			615		612
	Western Digital Corp, Term Loan B						Cunningham Lindsey US Inc, Term Loan B
	4.50%, 04/29/2023^(j)			577		580	5.00%, 10/18/2019^(j)			489		393
				$		2,324				$		3,715
	Distribution & Wholesale - 0.05%						Internet - 0.05%
	ABB Con-Cise Optical Group LLC, Term						ProQuest LLC, Term Loan B
	Loan B						5.75%, 09/24/2021^(j)			1,496		1,481
	6.00%, 06/01/2023^(j)			1,500		1,505
							Leisure Products & Services - 0.01%
	Diversified Financial Services - 0.01%						SRAM LLC, Term Loan B
	IG Investments Holdings LLC, Term Loan B						4.04%, 06/07/2018^(j)			294		281
	0.00%, 10/31/2021^(j),(n)			400		401
							Leisure Time - 0.11%
	Electric - 0.09%						AMF Bowling Centers Inc, Term Loan
	Primeline Utility Services LLC, Term Loan						0.00%, 08/17/2023^(j),(n)			1,500		1,488
	B						0.00%, 02/16/2024^(j),(n)			1,500		1,470
	6.50%, 11/14/2022^(j)			1,000		999				$		2,958
	Star West Generation LLC, Term Loan B						Lodging - 0.06%
	5.75%, 03/13/2020^(j)			805		543	Boyd Gaming Corp, Term Loan
	Texas Competitive Electric Holdings Co LLC,						0.00%, 08/16/2023^(j),(n)			153		154
	Term Loan						Diamond Resorts International Inc, Term
	7.08%, 07/27/2023^(j)			814		816	Loan
	7.08%, 07/27/2023^(j)			186		186	0.00%, 08/17/2023^(j),(n)			1,500		1,478
				$		2,544				$		1,632
	Electronics - 0.05%						Metal Fabrication & Hardware - 0.05%
	Aclara Technologies LLC, Term Loan						Eco-Bat Technologies Ltd, PIK Term Loan
	0.00%, 08/17/2023^(j),(n)			1,500		1,489	0.00%, PIK 11.00%, 03/31/2017 ^(j),(l),(n)		EUR	5,310		1,436

	Engineering & Construction - 0.01%						Miscellaneous Manufacturers - 0.02%
	Engility Corp, Term Loan						Gates Global LLC, Term Loan B
	5.75%, 08/04/2023^(j)			256		257	4.25%, 06/11/2021^(j)		$	624		613

	Entertainment - 0.16%						Office & Business Equipment - 0.07%
	NEP/NCP Holdco Inc, Term Loan B2						Eastman Kodak Co, Term Loan EXIT
	4.25%, 01/22/2020^(j)			1,496		1,488	7.25%, 09/03/2019^(j)			1,968		1,951
	Scientific Games International Inc, Term Loan
	B1						Oil & Gas - 0.05%
	6.00%, 05/22/2020^(j)			1,496		1,496	California Resources Corp, Term Loan
	VGD Merger Sub LLC, Term Loan B						0.00%, 12/31/2021^(j),(n)			695		728
	5.00%, 07/22/2023^(j)			1,500		1,503
				$		4,487


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



SENIOR FLOATING RATE INTERESTS		Principal				U.S. GOVERNMENT & GOVERNMENT			Principal
(continued)		Amount (000's)		Value(000	's)	AGENCY OBLIGATIONS (continued)			Amount (000's)		Value(000	's)
Oil & Gas (continued)						U.S. Treasury (continued)
Chesapeake Energy Corp, Term Loan						3.75%, 08/15/2041^(m)		$	308	$	404
0.00%, 08/17/2021^(j),(n)	$	546	$	563		3.75%, 11/15/2043^(m)			85,619		113,706
			$	1,291						$	268,644
Oil & Gas Services - 0.06%						U.S. Treasury Bill - 0.03%
CGG Holding US Inc, Term Loan						0.39%, 01/12/2017^(q)			850		849
6.50%, 05/15/2019^(j)		1,995		1,689
						U.S. Treasury Strip - 0.20%
Pharmaceuticals - 0.06%						0.00%, 02/15/2044^(b),(j),(r)			10,356		5,559
Vizient Inc, Term Loan B
6.25%, 02/09/2023^(j)		1,496		1,512		TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
						OBLIGATIONS				$	297,880
Pipelines - 0.03%									Maturity
Energy Transfer Equity LP, Term Loan						REPURCHASE AGREEMENTS - 13.89%			Amount (000's)		Value(000	's)
3.29%, 11/15/2019^(j)		593		582		Banks- 13.89	%
Southcross Energy Partners LP, Term Loan B						Barclays Bank PLC Repurchase Agreement		$	5,049	$	5,050
5.25%, 07/29/2021^(j)		291		234		(0.50)% dated 08/25/2016 (collateralized
			$	816		by Angolan Government International
Retail - 0.12%						Bond; $5,156,319; 9.50%; dated
Harbor Freight Tools USA Inc, Term Loan						11/12/25	)^(s)
4.00%, 08/16/2023^(j),(n)		1,227		1,229		Barclays Bank PLC Repurchase Agreement on			14,280		14,281
4.00%, 08/16/2023^(j)		280		281		securities sold short; (0.75)% dated
Leslie's Poolmart Inc, Term Loan						08/25/2016 (collateralized by Saudi
0.00%, 08/09/2023^(j),(n)		1,500		1,509		Electricity Global Sukuk Co 2;
Talbots Inc/The, Term Loan B						$14,543,137; 3.47%; dated 04/08/23)^(s)
5.50%, 03/13/2020^(j)		287		280		Barclays Bank PLC Repurchase Agreement on			5,163		5,163
			$	3,299		securities sold short; (0.80)% dated
Semiconductors - 0.01%						08/25/2016 (collateralized by Oman
Cavium Inc, Term Loan						Government International Bond;
3.75%, 08/10/2022^(j)		175		175		$5,220,919; 4.75%; dated 06/15/26)^(s)
						Barclays Bank PLC Repurchase Agreement on			5,655		5,709
Software - 0.11%						securities sold short; (1.60)% dated
Cengage Learning Inc, Term Loan B						01/20/2016 (collateralized by Rio Tinto
5.25%, 06/07/2023^(j)		1,500		1,497		Finance PLC; $6,789,968; 2.88%; dated
SolarWinds Holdings Inc, Term Loan B						12/11/24)^(s)
5.50%, 02/03/2023^(j)		1,500		1,505		Merrill Lynch Repurchase Agreement on			3,028		3,028
			$	3,002		securities sold short; (0.22)% dated
Telecommunications - 0.23%						08/31/2016 maturing 09/01/2016
Global Tel*Link Corp, Term Loan						(collateralized by United States Treasury
0.00%, 05/23/2020^(j),(n)		784		747		Note/Bond; $3,025,734; 1.50%; dated
Integra Telecom Holdings Inc, Term Loan B						08/15/26	)
5.25%, 08/14/2020^(j)		1,136		1,124		Merrill Lynch Repurchase Agreement on			94,705		94,704
Intelsat Jackson Holdings SA, Term Loan B2						securities sold short; 0.25% dated
3.75%, 06/30/2019^(j)		4,656		4,416		08/31/2016 maturing 09/01/2016
			$	6,287		(collateralized by United States Treasury
Transportation - 0.11%						Note/Bond; $94,664,613; 2.50%; dated
OSG Bulk Ships Inc, Term Loan B-EXIT						05/15/46	)
5.25%, 07/22/2019^(j)		178		176		Merrill Lynch Repurchase Agreement on			611		611
SIRVA Worldwide Inc, Term Loan						securities sold short; (0.25)% dated
0.00%, 03/22/2019^(e),(j),(n)		2,000		1,967		08/22/2016 (collateralized by Colombia
YRC Worldwide Inc, Term Loan						Government International Bond; $608,434;
8.00%, 02/13/2019^(j)		1,000		940		5.00%; dated 06/15/45)^(s)
			$	3,083		Merrill Lynch Repurchase Agreement on			47,720		47,709
TOTAL SENIOR FLOATING RATE INTERESTS			$	73,832		securities sold short; 0.27% dated
						08/03/2016 maturing 09/30/2016
U.S. GOVERNMENT & GOVERNMENT						(collateralized by United States Treasury
		Principal				Note/Bond; $46,945,043; 4.50%; dated
AGENCY OBLIGATIONS - 10.82%		Amount (000's)		Value(000	's)	02/15/36)

Federal National Mortgage Association (FNMA) - 0.83%
3.00%, 09/01/2045^(o)	$	22,000	$	22,828
						Merrill Lynch Repurchase Agreement on			10,366		10,366
						securities sold short; 0.28% dated
U.S. Treasury - 9.76%
0.75%, 04/30/2018^(p)		1,000		999		08/31/2016 maturing 09/01/2016
0.75%, 08/15/2019^(m)		10,590		10,542		(collateralized by United States Treasury
0.88%, 05/15/2019^(m)		5,586		5,585		Note/Bond; $10,356,897; 5.38%; dated
1.13%, 06/30/2021^(m)		2,580		2,572		02/15/31	)
1.25%, 03/31/2021^(m)		2,475		2,483		Merrill Lynch Repurchase Agreement on			16,729		16,729
1.38%, 04/30/2021^(m)		3,895		3,929		securities sold short; 0.35% dated
1.38%, 05/31/2021^(m)		4,762		4,805		08/31/2016 maturing 09/01/2016
1.63%, 02/15/2026^(m)		5,379		5,401		(collateralized by United States Treasury
2.25%, 11/15/2025^(m)		32,790		34,699		Note/Bond; $16,714,033; 0.75%; dated
2.25%, 08/15/2046^(m)		28,123		28,232		07/15/19	)
2.50%, 02/15/2046		500		528
3.38%, 05/15/2044		14,921		18,582
3.63%, 02/15/2044^(m)		27,843		36,177

REPURCHASE AGREEMENTS

Maturity

REPURCHASE AGREEMENTS

Maturity

(continued)

Amount (000's)

Value (000's)

(continued)

Amount (000's)

Value (000's)

Banks (continued)

Merrill Lynch Repurchase Agreement on

1,222

Merrill Lynch Repurchase Agreement; 0.54% $

3,540

securities sold short; (0.40)% dated

dated 08/31/2016 maturing 09/01/2016

08/22/2016 (collateralized by South Africa

(collateralized by United States Treasury

Government International Bond;

Note/Bond; $3,540,329; 1.38%; dated

$1,176,051; 4.88%; dated 04/14/26)^(s)

04/30/21)

Merrill Lynch Repurchase Agreement on

11,151

11,150

Merrill Lynch Repurchase Agreement on

securities sold short; 0.37% dated

securities sold short; (0.50)% dated

08/31/2016 maturing 09/01/2016

08/03/2016 (collateralized by Turkey

(collateralized by United States Treasury

Government International Bond; $43,495;

Note/Bond; $11,135,999; 6.25%; dated

7.38%; dated 02/05/25)^(s)

05/15/30

)

Merrill Lynch Repurchase Agreement on

1,211

Merrill Lynch Repurchase Agreement on

66,440

66,439

securities sold short; (0.50)% dated

securities sold short; 0.43% dated

08/09/2016 (collateralized by Turkey

08/31/2016 maturing 09/01/2016

Government International Bond;

(collateralized by United States Treasury

$1,229,936; 7.38%; dated 02/05/25)^(s)

Note/Bond; $66,346,860; 1.63%; dated

Merrill Lynch Repurchase Agreement on

1,195

1,197

05/15/26

)

securities sold short; (0.65)% dated

Merrill Lynch Repurchase Agreement; 0.45%

2,890

06/30/2016 (collateralized by Colombia

dated 08/31/2016 maturing 09/01/2016

Government International Bond;

(collateralized by United States Treasury

$1,213,120; 4.00%; dated 02/26/24)^(s)

Note/Bond; $2,886,501; 1.13%; dated

Merrill Lynch Repurchase Agreement on

440

06/30/21

)

securities sold short; (0.65)% dated

Merrill Lynch Repurchase Agreement on

61,011

61,010

08/03/2016 (collateralized by Colombia

securities sold short; 0.45% dated

Government International Bond; $440,177;

08/31/2016 maturing 09/30/2016

4.00%; dated 02/26/24)^(s)

(collateralized by United States Treasury

Merrill Lynch Repurchase Agreement on

2,813

2,816

Note/Bond; $60,974,317; 3.13%; dated

securities sold short; (0.75)% dated

11/15/41

)

07/18/2016 (collateralized by South Africa

Merrill Lynch Repurchase Agreement on

186

Government International Bond;

securities sold short; (0.45)% dated

$2,734,240; 4.88%; dated 04/14/26)^(s)

08/08/2016 (collateralized by Turkey

Merrill Lynch Repurchase Agreement on

1,175

1,182

Government International Bond; $189,686;

securities sold short; (0.80)% dated

7.38%; dated 02/05/25)^(s)

12/18/2015 (collateralized by Kazakhstan

Merrill Lynch Repurchase Agreement on

983

Government International Bond;

securities sold short; (0.45)% dated

$1,355,633; 5.13%; dated 07/21/25)^(s)

08/12/2016 (collateralized by Turkey

Merrill Lynch Repurchase Agreement on

1,429

Government International Bond; $985,882;

securities sold short; (0.80)% dated

7.38%; dated 02/05/25)^(s)

08/22/2016 (collateralized by Kazakhstan

Merrill Lynch Repurchase Agreement on

1,233

Government International Bond;

securities sold short; 0.46% dated

$1,429,063; 5.13%; dated 07/21/25)^(s)

08/31/2016 maturing 09/01/2016

382,601

(collateralized by United States Treasury

TOTAL REPURCHASE AGREEMENTS

382,601

Note/Bond; $1,232,382; 0.88%; dated

TOTAL PURCHASED OPTIONS - 0.24%

6,720

06/15/19

)

Merrill Lynch Repurchase Agreement on

668

TOTAL PURCHASED INTEREST RATE SWAPTIONS -0.01

202

securities sold short; 0.49% dated

Total Investments

3,241,562

08/31/2016 maturing 09/01/2016

Other Assets and Liabilities - (17.70)%

(487,534

)

(collateralized by United States Treasury

TOTAL NET ASSETS - 100.00%

2,754,028

Note/Bond; $667,780; 1.38%; dated

01/31/21

)

Merrill Lynch Repurchase Agreement on

15,648

(a)

Security or a portion of the security was pledged as collateral for short

securities sold short; 0.49% dated

sales. At the end of the period, the value of these securities totaled

08/31/2016 maturing 09/01/2016

$104,928 or 3.81% of net assets.

(collateralized by United States Treasury

(b)

Non-Income Producing Security

Note/Bond; $15,637,326; 3.00%; dated

(c)

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

11/15/45

)

1933. These securities may be resold in transactions exempt from

Merrill Lynch Repurchase Agreement on

5,720

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

securities sold short; (0.49)% dated

period, the value of these securities totaled $245,710 or 8.92% of net

08/31/2016 maturing 09/01/2016

assets.

(collateralized by United States Treasury

(d)

Security or a portion of the security was pledged to cover margin

Note/Bond; $5,713,812; 1.13%; dated

requirements for options contracts. At the end of the period, the value of

07/31/21

)

these securities totaled $10,219 or 0.37% of net assets.

Merrill Lynch Repurchase Agreement on

152

(e)

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

securities sold short; (0.50)% dated

totaled $51,690 or 1.88% of net assets.

04/29/2016 (collateralized by Colombia

(f)

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

Government International Bond; $157,958;

under procedures established and periodically reviewed by the Board of

4.00%; dated 02/26/24)^(s)

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

$23,430 or 0.85% of net assets.

Merrill Lynch Repurchase Agreement on

securities sold short; (0.50)% dated

(g)

Restricted Security. Please see Restricted Security Sub-Schedule for more

04/29/2016 (collateralized by Colombia

information.

Government International Bond; $94,775;

(h)

Security or a portion of the security was pledged to cover margin

4.00%; dated 02/26/24)^(s)

requirements for swap and/or swaption contracts. At the end of the period,

the value of these securities totaled $25,654 or 0.93% of net assets.


Portfolio Summary (unaudited)
Sector	Percent
Financial	23.86	%
Investment Companies	21.67	%
Government	20.11	%
Consumer, Non-cyclical	11.89	%
Consumer, Cyclical	6.33	%
Industrial	6.32	%
Communications	6.29	%
Technology	6.02	%
Energy	4.55	%
Mortgage Securities	3.74	%
Basic Materials	2.86	%
Asset Backed Securities	2.06	%
Utilities	1.35	%
Diversified	0.40	%
Purchased Options	0.24	%
Purchased Interest Rate Swaptions	0.01	%
Investments Sold Short	(26.17	)%
Other Assets and Liabilities	8.47	%
TOTAL NET ASSETS	100.00	%

Restricted Securities

Security Name	Trade Date			Cost			Value	Percent of Net Assets
Airbnb, Inc	06/24/2015		$		157	$	177	0.01	%
Birst Inc	03/03/2015				123		115	0.00	%
Cloudera Inc	02/05/2014				55		64	0.00	%
DraftKings Inc	12/04/2014				52		56	0.00	%
DraftKings Inc Term Notes	12/22/2015				27		27	0.00	%
Dropbox Inc	01/28/2014				51		34	0.00	%
Forescout Tech Inc	11/24/2015				109		112	0.00	%
Forward Venture Services LLC	11/20/2014				170		239	0.01	%
General Assembly Space, Inc	07/31/2015				107		107	0.00	%
Jand Inc	04/23/2015				19		19	0.00	%
Jand Inc	04/23/2015				43		41	0.00	%
Klarna Holding AB	08/07/2015				89		91	0.00	%
Lithium Technologies Inc	04/16/2015				290		325	0.01	%
Marklogic Corp	04/27/2015				172		155	0.01	%
Nutanix Inc	08/25/2014				48		45	0.00	%
Pinterest Inc	03/16/2015				627		570	0.02	%
Redfin Corp	12/15/2014				97		110	0.00	%
Trade Desk Preferred	02/09/2016				89		116	0.00	%
Uber Technologies Inc	06/05/2014				236		741	0.03	%
Veracode Inc	08/26/2014				112		149	0.01	%
WeWork Cos Inc	12/08/2014				16		49	0.00	%
WeWork Cos Inc Series D-1	12/08/2014				81		244	0.01	%
WeWork Cos Inc Series D-2	12/08/2014				64		192	0.01	%
Zuora Inc	01/15/2015				156		181	0.01	%


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016



Credit Default Swaps

Buy Protection
		Implied
		Credit Spread		(Pay)/						Upfront			Unrealized
		as of August		Receive		Expiration	Notional			Premiums			Appreciation/			Fair Value
Counterparty (Issuer)	Reference Entity	31, 2016	(a)	Fixed Rate		Date		Amount	Paid/(Received)				(Depreciation)			Asset		Liability
Barclays Bank PLC	AngloGold Ashanti	3.44	%	(1.00	)%	09/21/2020	$	10,000	$	962		$	(76	)	$	886	$	—
	Holdings PLC
Barclays Bank PLC	Deutsche Bank AG	2.15	%	(1.00	)%	06/20/2021	EUR	200		9			3			12		—
Barclays Bank PLC	Deutsche Bank AG	2.15	%	(1.00	)%	06/20/2021		175		9			1			10		—
Barclays Bank PLC	Emirate of Dubai	1.63	%	(5.00	)%	06/20/2021	$	10,000		(1,119	)		(422	)		—		(1,541	)
	Government
	International Bonds
Barclays Bank PLC	ITRAXX.ASIA	N/A		(1.00	)%	06/20/2021		1,110		21			(15	)		6		—
Barclays Bank PLC	Mexico Government	1.38	%	(1.00	)%	06/20/2021		15,000		431			(168	)		263		—
	International Bond
Citigroup Inc	Colombia	1.71	%	(1.00	)%	06/20/2021		20,000		637			7			644		—
	Government
	International Bond
Citigroup Inc	Russian Agricultural	2.48	%	(1.00	)%	03/20/2019		5,000		196			(14	)		182		—
	Bank OJSC Via
	RSHB Capital SA
Credit Suisse	Deutsche Bank AG	2.15	%	(1.00	)%	06/20/2021	EUR	375		15			7			22		—
Deutsche Bank AG	China Government	0.99	%	(1.00	)%	06/20/2021	$	1,200		6			(6	)		—		—
	International Bond
Deutsche Bank AG	Indonesia	1.44	%	(1.00	)%	06/20/2021		25,000		459			46			505		—
	Government
	International Bond
HSBC Securities Inc	Russian Foreign	2.18	%	(1.00	)%	06/20/2021		10,000		494			37			531		—
	Bond - Eurobond
Morgan Stanley & Co	ITRAXX.ASIA	N/A		(1.00	)%	06/20/2021		2,260		43			(33	)		10		—
Total								$		2,163		$	(633	)	$	3,071			$ (1,541)

Sell Protection
		Implied
		Credit Spread		(Pay)/						Upfront			Unrealized
		as of August		Receive		Expiration	Notional			Premiums			Appreciation/			Fair Value (c)
Counterparty (Issuer)	Reference Entity	31, 2016	(a)	Fixed Rate		Date		Amount (b)		Paid/(Received)			(Depreciation)			Asset		Liability
Barclays Bank PLC	Deutsche Bank AG	4.17	%	1.00	%	06/20/2021	EUR	200	$	(27	)	$	(4	)	$	— $		(31	)
Barclays Bank PLC	Deutsche Bank AG	4.17	%	1.00	%	06/20/2021		175		(26	)		(1	)		—		(27	)
Citigroup Inc	Argentine Republic	3.81	%	5.00	%	06/20/2021	$	10,000		504			12			516		—
	Government
	International Bond
Credit Suisse	China Government	0.99	%	1.00	%	06/20/2021		12,500		(4	)		8			4		—
	International Bond
Credit Suisse	Deutsche Bank AG	4.17	%	1.00	%	06/20/2021	EUR	375		(49	)		(9	)		—		(58	)
Credit Suisse	ITRAXX.ASIA	N/A		1.00	%	06/20/2021	$	12,500		(67	)		(3	)		—		(70	)
HSBC Securities Inc	Croatia Government	2.04	%	1.00	%	12/20/2020		10,000		(718	)		292			—		(426	)
	International Bond
HSBC Securities Inc	Croatia Government	1.95	%	1.00	%	09/20/2020		10,000		(619	)		251			—		(368	)
	International Bond
Total								$		(1,006	)	$	546		$	520	$	(980	)

Amounts in thousands
Exchange Cleared Credit Default Swaps

Buy Protection
		Implied
		Credit Spread		(Pay)/						Upfront			Unrealized
		as of August		Receive		Expiration	Notional			Premiums			Appreciation/
	Reference Entity	31, 2016	(a)	Fixed Rate		Date	Amount			Paid/(Received)			(Depreciation)			Fair Value
	CDX.NA.HY.26	N/A		(5.00	)%	06/20/2021	$	7,400	$	(206	)	$	(122	)	$			(328	)
	CDX.NA.HY.26	N/A		(5.00	)%	06/20/2021		2,550		(116	)		5					(111	)
Total								$		(322	)	$	(117	)	$			(439	)

Sell Protection
		Implied
		Credit Spread		(Pay)/						Upfront			Unrealized
		as of August		Receive		Expiration	Notional			Premiums			Appreciation/
	Reference Entity	31, 2016	(a)	Fixed Rate		Date	Amount (b)			Paid/(Received)			(Depreciation)			Fair Value (c)
	CDX.HY.26	N/A		5.00	%	06/20/2021	$	75	$	3		$	—		$			3
Total								$		3		$	—		$			3

(a) Implied credit spreads, represented in absolute terms, used in determining the market value of credit default swap agreements on corporate issues or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

(b) 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 $55,075 and 750 EUR .

(c) 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.


Foreign Currency Contracts

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For		Fair Value		Asset		Liability
Bank of America NA	09/21/2016	GBP	483,000	$	642	$	635	$	1	$	(8	)
Bank of America NA	09/23/2016	AUD	114,411,000		86,008		85,927		303		(384	)
Bank of America NA	09/23/2016	CAD	115,704,000		89,916		88,249		12		(1,679	)
Bank of America NA	09/23/2016	CHF	48,414,000		50,128		49,302		4		(830	)
Bank of America NA	09/23/2016	EUR	131,994,000		148,659		147,356		93		(1,396	)
Bank of America NA	09/23/2016	GBP	50,371,000		70,349		66,172		52		(4,229	)
Bank of America NA	09/23/2016	JPY	10,644,628,000		101,992		102,995		1,708		(705	)
Bank of America NA	09/23/2016	MXN	93,103,000		4,976		4,942		14		(48	)
Bank of America NA	09/23/2016	NZD	39,465,000		28,053		28,604		556		(5	)
Bank of New York Mellon	09/01/2016	CHF	152,300		155		155		—		—
Bank of New York Mellon	09/02/2016	CHF	161,000		164		164		—		—
Bank of New York Mellon	09/09/2016	EUR	14,735,481		16,671		16,441		5		(235	)
Bank of New York Mellon	09/09/2016	GBP	959,090		1,252		1,260		8		—
Bank of New York Mellon	09/21/2016	EUR	475,000		531		530		—		(1	)
Bank of New York Mellon	09/21/2016	GBP	665,000		881		874		—		(7	)
Bank of New York Mellon	10/03/2016	EUR	2,002,595		2,156		2,237		81		—
Bank of New York Mellon	10/12/2016	ZAR	10,784,620		769		728		—		(41	)
Bank of New York Mellon	12/05/2016	EUR	9,269,700		10,474		10,381		8		(101	)
Bank of New York Mellon	09/01/2016	AUD	9,350		7		7		—		—
Barclays Bank PLC	09/01/2016	ZAR	15,561,799		1,093		1,058		—		(35	)
Barclays Bank PLC	09/02/2016	CAD	4,587,522		3,553		3,499		—		(54	)
Barclays Bank PLC	09/02/2016	EUR	5,738,250		6,458		6,401		—		(57	)
Barclays Bank PLC	09/02/2016	GBP	2,186,000		2,872		2,870		3		(5	)
Barclays Bank PLC	09/02/2016	JPY	640,234,800		6,261		6,188		—		(73	)
Barclays Bank PLC	09/02/2016	MXN	69,862,944		3,775		3,715		—		(60	)
Barclays Bank PLC	09/02/2016	NOK	10,134,314		1,232		1,216		—		(16	)
Barclays Bank PLC	09/02/2016	SEK	20,749,632		2,468		2,424		—		(44	)
Barclays Bank PLC	09/02/2016	ZAR	8,548,556		580		581		1		—
Barclays Bank PLC	09/12/2016	CNY	2,995,650		450		448		—		(2	)
Barclays Bank PLC	09/14/2016	CNY	64,036,243		9,681		9,581		1		(101	)
Barclays Bank PLC	09/14/2016	MXN	12,344,144		664		656		—		(8	)
Barclays Bank PLC	09/16/2016	BRL	2,197,074		657		678		21		—
Barclays Bank PLC	09/16/2016	TRY	655,796		219		221		2		—
Barclays Bank PLC	09/19/2016	MXN	51,425,625		2,782		2,731		—		(51	)
Barclays Bank PLC	09/23/2016	CAD	1,108,073		857		845		—		(12	)
Barclays Bank PLC	09/26/2016	JPY	755,312,346		7,325		7,310		—		(15	)
Barclays Bank PLC	09/26/2016	MXN	21,334,662		1,148		1,132		—		(16	)
Barclays Bank PLC	09/26/2016	NZD	5,947,000		4,332		4,310		—		(22	)
Barclays Bank PLC	09/26/2016	SEK	24,568,506		2,917		2,874		—		(43	)
Barclays Bank PLC	09/30/2016	CNY	6,025,140		900		900		—		—
Barclays Bank PLC	09/30/2016	ZAR	3,025,619		218		205		—		(13	)
Barclays Bank PLC	10/03/2016	ZAR	8,104,095		547		548		1		—
Barclays Bank PLC	10/11/2016	MXN	45,591,566		2,461		2,416		1		(46	)
Barclays Bank PLC	10/11/2016	TRY	2,326,725		762		780		18		—
Barclays Bank PLC	10/11/2016	ZAR	5,237,294		383		354		—		(29	)
Barclays Bank PLC	10/12/2016	CNY	7,005,915		1,050		1,046		—		(4	)
Barclays Bank PLC	10/12/2016	HUF	149,515,500		526		539		13		—
Barclays Bank PLC	10/12/2016	MXN	17,795,657		950		943		1		(8	)
Barclays Bank PLC	10/12/2016	PLN	2,282,936		570		584		14		—
Barclays Bank PLC	10/12/2016	ZAR	6,217,260		420		420		—		—
Barclays Bank PLC	11/07/2016	ZAR	5,240,398		383		352		—		(31	)
Barclays Bank PLC	11/30/2016	CNY	9,167,652		1,365		1,365		—		—


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Foreign Currency Contracts (continued)

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For		Fair Value		Asset		Liability
Barclays Bank PLC	01/04/2017	CNY	14,771,188	$	2,188	$	2,194	$	6	$	—
Barclays Bank PLC	02/16/2017	CNY	63,265,739		9,434		9,371		3		(66	)
Barclays Bank PLC	09/25/2017	EUR	952,625		1,085		1,082		—		(3	)
Barclays Bank PLC	09/25/2017	GBP	775,615		1,022		1,027		5		—
Barclays Bank PLC	11/03/2017	EUR	1,454,910		1,653		1,656		3		—
Citigroup Inc	09/21/2016	AUD	25,044,000		18,620		18,810		288		(98	)
Citigroup Inc	09/21/2016	BRL	12,848,001		3,717		3,957		240		—
Citigroup Inc	09/21/2016	CAD	20,359,691		15,719		15,528		1		(192	)
Citigroup Inc	09/21/2016	CHF	7,532,353		7,722		7,670		17		(69	)
Citigroup Inc	09/21/2016	CLP	3,737,409,000		5,591		5,485		6		(112	)
Citigroup Inc	09/21/2016	COP	1,291,914,000		438		433		1		(6	)
Citigroup Inc	09/21/2016	CZK	46,100,000		1,913		1,905		—		(8	)
Citigroup Inc	09/21/2016	DKK	1,510,000		228		226		—		(2	)
Citigroup Inc	09/21/2016	EUR	11,735,075		13,182		13,100		22		(104	)
Citigroup Inc	09/21/2016	GBP	14,222,998		19,442		18,684		51		(809	)
Citigroup Inc	09/21/2016	HUF	685,333,307		2,468		2,470		14		(12	)
Citigroup Inc	09/21/2016	IDR	12,952,663,000		947		973		26		—
Citigroup Inc	09/21/2016	ILS	1,860,000		490		493		3		—
Citigroup Inc	09/21/2016	INR	118,227,000		1,732		1,761		29		—
Citigroup Inc	09/21/2016	JPY	8,014,362,003		75,682		77,537		1,981		(126	)
Citigroup Inc	09/21/2016	KRW	16,511,405,000		14,502		14,811		361		(52	)
Citigroup Inc	09/21/2016	MXN	175,192,262		9,428		9,300		23		(151	)
Citigroup Inc	09/21/2016	MYR	9,742,000		2,378		2,388		19		(9	)
Citigroup Inc	09/21/2016	NOK	36,328,000		4,412		4,361		6		(57	)
Citigroup Inc	09/21/2016	NZD	25,721,997		17,639		18,645		1,012		(6	)
Citigroup Inc	09/21/2016	PHP	45,995,000		980		986		7		(1	)
Citigroup Inc	09/21/2016	PLN	27,972,000		7,236		7,158		23		(101	)
Citigroup Inc	09/21/2016	SEK	23,804,832		2,860		2,784		—		(76	)
Citigroup Inc	09/21/2016	SGD	7,901,251		5,796		5,800		25		(21	)
Citigroup Inc	09/21/2016	TRY	39,317,000		13,055		13,238		194		(11	)
Citigroup Inc	09/21/2016	TWD	69,712,000		2,206		2,200		8		(14	)
Citigroup Inc	09/21/2016	ZAR	54,880,998		3,592		3,720		139		(11	)
Citigroup Inc	12/21/2016	AUD	6,021,602		4,540		4,513		—		(27	)
Citigroup Inc	12/21/2016	BRL	11,065,844		3,300		3,317		19		(2	)
Citigroup Inc	12/21/2016	CAD	1,445,187		1,109		1,103		—		(6	)
Citigroup Inc	12/21/2016	COP	312,368,006		104		103		—		(1	)
Citigroup Inc	12/21/2016	GBP	44,000		58		58		—		—
Citigroup Inc	12/21/2016	IDR	7,466,923,622		554		554		—		—
Citigroup Inc	12/21/2016	ILS	266,000		70		70		—		—
Citigroup Inc	12/21/2016	INR	42,462,614		622		624		2		—
Citigroup Inc	12/21/2016	JPY	641,801,133		6,344		6,235		—		(109	)
Citigroup Inc	12/21/2016	KRW	75,419,439		68		68		—		—
Citigroup Inc	12/21/2016	MXN	15,571,000		830		820		—		(10	)
Citigroup Inc	12/21/2016	MYR	1,039,000		256		253		—		(3	)
Citigroup Inc	12/21/2016	NOK	6,669,000		803		801		1		(3	)
Citigroup Inc	12/21/2016	NZD	5,338,701		3,854		3,856		5		(3	)
Citigroup Inc	12/21/2016	PHP	11,845,441		254		253		—		(1	)
Citigroup Inc	12/21/2016	PLN	2,905,055		746		742		—		(4	)
Citigroup Inc	12/21/2016	SEK	852,000		102		100		—		(2	)
Citigroup Inc	12/21/2016	TRY	3,971,084		1,316		1,312		—		(4	)
Citigroup Inc	12/21/2016	TWD	42,700,997		1,356		1,353		—		(3	)
Citigroup Inc	12/21/2016	ZAR	8,535,464		578		569		—		(9	)
Citigroup Inc	04/05/2017	EUR	1,500		2		2		—		—
Deutsche Bank AG	09/30/2016	EUR	555,000		619		620		1		—
HSBC Securities Inc	09/21/2016	JPY	788,224,000		7,556		7,626		70		—
Merrill Lynch	09/06/2016	EUR	1,300,000		1,454		1,450		—		(4	)
Merrill Lynch	09/06/2016	HUF	1,449,000,000		5,203		5,220		17		—
Merrill Lynch	09/13/2016	KRW	1,475,000,000		1,261		1,323		62		—
Merrill Lynch	09/19/2016	CNY	19,200,000		2,867		2,872		5		—
Morgan Stanley & Co	09/12/2016	SEK	30,900,000		3,656		3,612		—		(44	)
Morgan Stanley & Co	09/13/2016	CLP	3,400,000,000		5,009		4,992		—		(17	)
Morgan Stanley & Co	09/22/2016	MXN	95,600,000		5,273		5,074		—		(199	)
Morgan Stanley & Co	09/30/2016	NOK	53,500,000		6,272		6,424		152		—
Standard Chartered Bank, Hong Kong	09/21/2016	JPY	1,108,129,000		10,821		10,721		—		(100	)
Stifel, Nicolaus & Company	09/09/2016	RUB	500,000,000		7,544		7,634		90		—
Total							$		7,858	$	(13,082	)
									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset		Liability
Bank of America NA	09/21/2016	CHF	47,000	$	49	$	48	$	1	$	—
Bank of America NA	09/21/2016	GBP	2,111,000		2,967		2,773		194		—
Bank of America NA	09/23/2016	AUD	79,449,000		59,406		59,669		205		(468	)


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Foreign Currency Contracts (continued)

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset		Liability
Bank of America NA	09/23/2016	CAD	92,706,000	$	71,090	$	70,709	$	449	$	(68	)
Bank of America NA	09/23/2016	CHF	77,206,000		79,605		78,622		997		(14	)
Bank of America NA	09/23/2016	EUR	144,288,000		161,098		161,082		743		(727	)
Bank of America NA	09/23/2016	GBP	78,885,000		109,193		103,629		5,732		(168	)
Bank of America NA	09/23/2016	JPY	7,069,763,000		68,479		68,406		554		(481	)
Bank of America NA	09/23/2016	MXN	343,940,000		18,640		18,254		391		(5	)
Bank of America NA	09/23/2016	NZD	11,126,000		7,959		8,064		14		(119	)
Bank of New York Mellon	09/09/2016	EUR	33,127,872		36,619		36,963		3		(347	)
Bank of New York Mellon	09/09/2016	GBP	6,488,858		8,517		8,522		10		(15	)
Bank of New York Mellon	09/21/2016	CHF	3,900,000		4,073		3,971		102		—
Bank of New York Mellon	09/21/2016	EUR	13,000,000		14,876		14,512		364		—
Bank of New York Mellon	09/21/2016	GBP	3,220,000		4,514		4,230		284		—
Bank of New York Mellon	09/23/2016	EUR	5,259,750		6,026		5,872		154		—
Bank of New York Mellon	10/03/2016	EUR	5,000,005		5,693		5,584		109		—
Bank of New York Mellon	10/12/2016	ZAR	10,784,620		770		728		42		—
Bank of New York Mellon	10/14/2016	EUR	15,440,680		17,592		17,253		339		—
Bank of New York Mellon	11/18/2016	EUR	12,801,088		14,441		14,324		117		—
Bank of New York Mellon	12/05/2016	EUR	19,654,225		21,846		22,010		122		(286	)
Bank of New York Mellon	09/25/2017	GBP	930,815		1,225		1,232		—		(7	)
Barclays Bank PLC	09/01/2016	ZAR	15,561,799		1,112		1,059		53		—
Barclays Bank PLC	09/02/2016	AUD	4,645,250		3,515		3,492		23		—
Barclays Bank PLC	09/02/2016	CAD	5,303,517		4,099		4,044		55		—
Barclays Bank PLC	09/02/2016	EUR	7,924,250		8,901		8,839		66		(4	)
Barclays Bank PLC	09/02/2016	GBP	3,008,250		3,961		3,950		11		—
Barclays Bank PLC	09/02/2016	JPY	636,063,683		6,277		6,147		130		—
Barclays Bank PLC	09/02/2016	MXN	35,400,701		1,912		1,882		30		—
Barclays Bank PLC	09/02/2016	NOK	10,132,705		1,233		1,216		17		—
Barclays Bank PLC	09/02/2016	ZAR	8,538,920		581		581		—		—
Barclays Bank PLC	09/12/2016	CNY	3,085,200		450		462		—		(12	)
Barclays Bank PLC	09/14/2016	AUD	877,500		664		659		5		—
Barclays Bank PLC	09/14/2016	CNY	64,960,520		9,680		9,719		63		(102	)
Barclays Bank PLC	09/16/2016	TRY	655,275		219		221		—		(2	)
Barclays Bank PLC	09/19/2016	CAD	976,000		756		744		12		—
Barclays Bank PLC	09/19/2016	MXN	37,378,395		2,026		1,985		41		—
Barclays Bank PLC	09/23/2016	CAD	9,139,369		6,963		6,971		1		(9	)
Barclays Bank PLC	09/26/2016	AUD	2,339,000		1,760		1,756		4		—
Barclays Bank PLC	09/26/2016	JPY	451,834,096		4,498		4,373		125		—
Barclays Bank PLC	09/26/2016	NOK	15,155,407		1,830		1,820		11		(1	)
Barclays Bank PLC	09/26/2016	NZD	2,019,000		1,471		1,464		7		—
Barclays Bank PLC	09/26/2016	TRY	3,412,277		1,148		1,148		—		—
Barclays Bank PLC	09/30/2016	CNY	6,028,245		900		901		—		(1	)
Barclays Bank PLC	09/30/2016	ZAR	3,098,863		218		210		8		—
Barclays Bank PLC	10/03/2016	ZAR	7,945,895		548		538		10		—
Barclays Bank PLC	10/11/2016	MXN	50,436,763		2,734		2,672		62		—
Barclays Bank PLC	10/11/2016	TRY	6,455,477		2,186		2,164		22		—
Barclays Bank PLC	10/11/2016	ZAR	5,213,013		383		352		31		—
Barclays Bank PLC	10/12/2016	CNY	7,005,915		1,050		1,046		4		—
Barclays Bank PLC	10/12/2016	HUF	41,360,525		145		149		—		(4	)
Barclays Bank PLC	10/12/2016	MXN	4,467,874		240		237		3		—
Barclays Bank PLC	10/12/2016	PLN	951,378		237		243		—		(6	)
Barclays Bank PLC	10/12/2016	ZAR	5,995,542		420		405		15		—
Barclays Bank PLC	11/07/2016	ZAR	5,251,734		383		353		30		—
Barclays Bank PLC	01/04/2017	CNY	7,290,963		1,094		1,083		11		—
Barclays Bank PLC	02/16/2017	CNY	50,529,214		7,549		7,483		67		(1	)
Barclays Bank PLC	09/25/2017	EUR	952,625		1,091		1,083		8		—
Barclays Bank PLC	09/25/2017	GBP	775,615		1,201		1,027		174		—
Barclays Bank PLC	11/03/2017	EUR	1,454,910		1,654		1,657		—		(3	)
Citigroup Inc	09/21/2016	AUD	17,369,602		12,835		13,047		57		(269	)
Citigroup Inc	09/21/2016	BRL	5,717,844		1,695		1,761		—		(66	)
Citigroup Inc	09/21/2016	CAD	15,640,292		11,981		11,929		77		(25	)
Citigroup Inc	09/21/2016	CHF	21,968,000		22,345		22,368		29		(52	)
Citigroup Inc	09/21/2016	CLP	3,737,409,000		5,441		5,485		51		(95	)
Citigroup Inc	09/21/2016	COP	764,300,006		250		256		1		(7	)
Citigroup Inc	09/21/2016	CZK	38,000,000		1,573		1,570		5		(2	)
Citigroup Inc	09/21/2016	DKK	1,549,000		232		232		1		(1	)
Citigroup Inc	09/21/2016	EUR	25,665,799		28,796		28,651		192		(47	)
Citigroup Inc	09/21/2016	GBP	14,222,998		20,384		18,684		1,713		(13	)
Citigroup Inc	09/21/2016	HKD	1,483,000		192		192		—		—
Citigroup Inc	09/21/2016	HUF	1,050,900,002		3,741		3,788		—		(47	)
Citigroup Inc	09/21/2016	IDR	11,243,270,622		826		845		—		(19	)
Citigroup Inc	09/21/2016	ILS	15,508,000		4,047		4,108		—		(61	)
Citigroup Inc	09/21/2016	INR	68,990,614		1,017		1,028		—		(11	)
Citigroup Inc	09/21/2016	JPY	2,140,005,133		20,810		20,704		214		(108	)


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Foreign Currency Contracts (continued)

							Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset			Liability
Citigroup Inc	09/21/2016	MYR	9,742,000	$	2,399	$	2,388	$	18		$	(7	)
Citigroup Inc	09/21/2016	KRW	16,413,610,438		14,034		14,723		7			(696	)
Citigroup Inc	09/21/2016	MXN	185,198,002		9,863		9,831		46			(14	)
Citigroup Inc	09/21/2016	NOK	41,825,998		4,989		5,022		7			(40	)
Citigroup Inc	09/21/2016	NZD	13,357,701		9,599		9,683		1			(85	)
Citigroup Inc	09/21/2016	PHP	35,225,441		750		755		1			(6	)
Citigroup Inc	09/21/2016	PLN	15,670,054		3,967		4,010		6			(49	)
Citigroup Inc	09/21/2016	SEK	127,576,835		15,297		14,920		390			(13	)
Citigroup Inc	09/21/2016	SGD	11,076,000		8,220		8,131		91			(2	)
Citigroup Inc	09/21/2016	TRY	18,328,084		6,125		6,171		25			(71	)
Citigroup Inc	09/21/2016	TWD	69,712,000		2,183		2,200		3			(20	)
Citigroup Inc	09/21/2016	ZAR	30,313,464		1,997		2,055		25			(83	)
Citigroup Inc	12/21/2016	AUD	1,090,000		818		817		1			—
Citigroup Inc	12/21/2016	CAD	467,000		356		356		—			—
Citigroup Inc	12/21/2016	CHF	583,353		600		598		2			—
Citigroup Inc	12/21/2016	CLP	1,894,227,000		2,789		2,759		30			—
Citigroup Inc	12/21/2016	CZK	7,000,000		290		291		—			(1	)
Citigroup Inc	12/21/2016	DKK	917,000		138		138		—			—
Citigroup Inc	12/21/2016	EUR	4,243,728		4,765		4,756		9			—
Citigroup Inc	12/21/2016	GBP	5,634,998		7,402		7,415		—			(13	)
Citigroup Inc	12/21/2016	HKD	8,000		1		1		—			—
Citigroup Inc	12/21/2016	HUF	177,865,307		643		642		1			—
Citigroup Inc	12/21/2016	ILS	77,000		20		20		—			—
Citigroup Inc	12/21/2016	INR	819,000		12		12		—			—
Citigroup Inc	12/21/2016	JPY	205,958,000		2,010		2,001		9			—
Citigroup Inc	12/21/2016	KRW	575,277,000		513		516		—			(3	)
Citigroup Inc	12/21/2016	MXN	11,882,262		626		625		1			—
Citigroup Inc	12/21/2016	NZD	1,358,000		976		981		—			(5	)
Citigroup Inc	12/21/2016	PLN	1,871,000		477		478		—			(1	)
Citigroup Inc	12/21/2016	SEK	14,110,000		1,659		1,658		1			—
Citigroup Inc	12/21/2016	SGD	3,078,251		2,264		2,260		4			—
Citigroup Inc	12/21/2016	ZAR	4,615,000		316		307		9			—
Citigroup Inc	04/05/2017	EUR	1,500		2		2		—			—
Commonwealth Bank of Australia	09/09/2016	NZD	5,500,000		3,929		3,989		—			(60	)
Commonwealth Bank of Australia	09/21/2016	EUR	25,850,000		29,352		28,856		496			—
Credit Suisse	09/26/2016	COP	3,330,000,000		1,146		1,115		31			—
Credit Suisse	09/26/2016	IDR	33,300,000,000		2,517		2,498		19			—
Deutsche Bank AG	09/30/2016	EUR	1,690,000		1,910		1,887		23			—
Deutsche Bank AG	11/16/2016	EUR	412,000		464		461		3			—
Deutsche Bank AG	04/28/2017	PLN	9,350,000		2,427		2,388		39			—
JPMorgan Chase	09/21/2016	GBP	793,000		1,149		1,042		107			—
JPMorgan Chase	09/21/2016	JPY	10,599,029,000		99,892		102,543		—			(2,651	)
Merrill Lynch	09/06/2016	EUR	4,570,000		5,111		5,098		13			—
Merrill Lynch	09/06/2016	HUF	425,000,000		1,530		1,531		—			(1	)
Merrill Lynch	09/12/2016	BRL	3,500,000		1,097		1,081		16			—
Merrill Lynch	09/12/2016	MXN	10,000,000		546		531		15			—
Merrill Lynch	09/13/2016	KRW	6,000,000,000		5,189		5,382		—			(193	)
Merrill Lynch	09/19/2016	CNY	61,300,000		9,293		9,168		125			—
Morgan Stanley & Co	09/13/2016	CLP	3,400,000,000		5,013		4,992		21			—
Morgan Stanley & Co	09/21/2016	JPY	1,812,444,000		17,097		17,535		—			(438	)
Morgan Stanley & Co	09/22/2016	CAD	6,600,000		5,164		5,034		130			—
Morgan Stanley & Co	09/30/2016	CAD	8,235,000		6,298		6,281		17			—
Morgan Stanley & Co	09/30/2016	MXN	3,597,635		196		191		5			—
Morgan Stanley & Co	01/05/2017	BRL	7,900,000		2,348		2,358		—			(10	)
Stifel, Nicolaus & Company	09/09/2016	MYR	25,000,000		6,260		6,151		109			—
Stifel, Nicolaus & Company	09/09/2016	RUB	500,000,000		7,641		7,634		7			—
Total							$		16,228		$	(8,135	)

Amounts in thousands except contracts


Futures Contracts

												Unrealized
Type	Long/Short		Contracts		Notional Value				Fair Value	Appreciation/(Depreciation)
3 Month Euro Swiss; December 2016		Short	3	$	769		$		769	$		—
3 Month Euro Swiss; June 2017		Short	1		256				256			—
3 Month Euro Swiss; March 2017		Short	1		256				256			—
90 Day Eurodollar; December 2016		Short	141		34,944				34,915			29
90 Day Eurodollar; December 2017		Long	872		215,705				215,558			(147	)
90 Day Eurodollar; December 2017		Long	14		3,465				3,461			(4	)
90 Day Eurodollar; December 2018		Short	484		119,664				119,494			170


		Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016

Futures Contracts (continued)

									Unrealized
Type	Long/Short	Contracts		Notional Value		Fair Value		Appreciation/(Depreciation)
90 Day Eurodollar; June 2017	Long	484	$	119,882	$		119,748	$	(134	)
90 Day Eurodollar; June 2017	Short	121		29,966			29,937		29
90 Day Eurodollar; June 2018	Long	16		3,957			3,953		(4	)
90 Day Eurodollar; March 2017	Short	131		32,452			32,426		26
90 Day Eurodollar; March 2017	Short	77		19,065			19,059		6
90 Day Eurodollar; March 2018	Long	15		3,711			3,707		(4	)
90 Day Eurodollar; September 2016	Short	323		80,151			80,035		116
90 Day Eurodollar; September 2017	Long	12		2,970			2,968		(2	)
90 Day Eurodollar; September 2017	Long	78		19,318			19,290		(28	)
90 Day Short Sterling; December 2016	Long	137		22,420			22,420		—
90 Day Short Sterling; December 2017	Long	32		5,227			5,239		12
90 Day Short Sterling; December 2017	Long	1,297		212,190			212,340		150
90 Day Short Sterling; June 2017	Long	129		21,105			21,117		12
90 Day Short Sterling; June 2018	Long	28		4,574			4,584		10
90 Day Short Sterling; March 2017	Long	135		22,089			22,097		8
90 Day Short Sterling; March 2018	Long	30		4,898			4,911		13
90 Day Short Sterling; September 2017	Long	35		5,719			5,730		11
90 Day Short Sterling; September 2017	Short	156		25,536			25,540		(4	)
AEX Index; September 2016	Short	2		202			203		(1	)
ASX 90 Day Bank Bill; September 2017	Short	114		85,324			85,351		(27	)
Australia 10 Year Bond; September 2016	Short	35		3,551			3,627		(76	)
Australia 10 Year Bond; September 2016	Long	37		3,834			3,834		—
Australia 10 Year Bond; September 2016	Long	355		35,994			36,790		796
Australia 3 Year Bond; September 2016	Long	68		5,781			5,802		21
BIST 30 Index; October 2016	Long	27		87			86		(1	)
CAC40 Index; September 2016	Long	162		7,993			8,020		27
CAC40 Index; September 2016	Long	3		149			148		(1	)
Canada 10 Year Bond; December 2016	Short	19		2,126			2,126		—
Canada 10 Year Bond; December 2016	Long	311		34,782			34,807		25
Canadian Bank Acceptance; December 2016	Short	18		3,400			3,400		—
Canadian Bank Acceptance; June 2017	Short	4		756			756		—
Canadian Bank Acceptance; March 2017	Short	13		2,455			2,455		—
Canadian Bank Acceptance; September 2017	Short	152		28,714			28,710		4
DAX Index; September 2016	Long	24		6,986			7,101		115
DAX Index; September 2016	Long	30		8,806			8,877		71
DJ Euro Stoxx 50; September 2016	Short	807		25,305			27,275		(1,970	)
DJ Euro Stoxx 50; September 2016	Long	23		772			777		5
DJ Euro Stoxx 50; September 2016	Short	155		5,169			5,239		(70	)
E-Mini DJIA Index; September 2016	Long	21		1,930			1,931		1
E-Mini DJIA Index; September 2016	Long	338		30,367			31,088		721
eMini MSCI EAFE; September 2016	Long	3		254			253		(1	)
eMini MSCI Emerging Markets; September 2016	Long	35		1,553			1,554		1
Euribor; December 2016	Long	87		24,334			24,340		6
Euribor; December 2017	Long	33		9,234			9,235		1
Euribor; December 2017	Long	1,672		467,815			467,913		98
Euribor; June 2017	Long	93		26,027			26,024		(3	)
Euribor; June 2018	Long	22		6,156			6,156		—
Euribor; March 2017	Long	87		24,337			24,342		5
Euribor; March 2018	Long	34		9,510			9,515		5
Euribor; September 2017	Short	28		7,835			7,835		—
Euribor; September 2017	Long	26		7,278			7,276		(2	)
Euro Bund 10 Year Bund; September 2016	Long	199		37,188			37,154		(34	)
Euro Bund 10 Year Bund; September 2016	Short	91		16,740			16,990		(250	)
Euro-Bobl 5 Year; September 2016	Short	57		8,409			8,494		(85	)
FTSE China A50 Index; September 2016	Long	19		187			187		—
FTSE KLCI Index; September 2016	Long	7		145			145		—
FTSE/JSE Top 40; September 2016	Short	44		1,377			1,385		(8	)
FTSE/MIB Index; September 2016	Short	17		1,524			1,606		(82	)
FTSE100 Index; September 2016	Long	78		6,830			6,951		121
FTSE100 Index; September 2016	Long	189		16,998			16,842		(156	)


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016

Futures Contracts (continued)

														Unrealized
Type			Long/Short	Contracts			Notional Value					Fair Value		Appreciation/(Depreciation)
FTSE100 Index; September 2016			Short		100	$		7,708		$		8,911	$	(1,203			)
Hang Seng Index; September 2016			Long		2			295				296				1
Hang Seng Index; September 2016			Long		176			25,849				26,010				161
HSCEI China Index; September 2016			Long		9			555				554				(1	)
IBEX 35 Index; September 2016			Long		4			385				389				4
Japan 10 Year Bond TSE; September 2016			Long		25			36,605				36,585				(20	)
Japan 10 Year Bond TSE; September 2016			Short		7			10,269				10,244				25
Japan Topix Index; September 2016			Short		448			57,443				57,610				(167	)
Japan Topix Index; September 2016			Short		101			12,518				12,988				(470	)
Japan Topix Index; September 2016			Long		9			1,142				1,157				15
KOSPI 200 Index; September 2016			Long		3			324				345				21
Mex Bolsa Index; September 2016			Short		1			25				25				—
Mini Japan 10 Year Bond; September 2016			Long		10			1,464				1,464				—
Mini Japan 10 Year Bond; September 2016			Short		80			11,715				11,709				6
MSCI Singapore Index; September 2016			Short		21			489				478				11
MSCI Taiwan Index; September 2016			Long		12			405				402				(3	)
Nasdaq 100 E-Mini; September 2016			Long		446			42,464				42,582				118
Nasdaq 100 E-Mini; September 2016			Long		28			2,612				2,673				61
Nikkei 225 OSE; September 2016			Short		5			788				816				(28	)
Nikkei 225 OSE; September 2016			Short		30			4,812				4,897				(85	)
OMXS30 Index; September 2016			Long		10			165				166				1
Russell 2000 Mini; September 2016			Short		813			92,762				100,714		(7,952			)
Russell 2000 Mini; September 2016			Short		19			2,181				2,354				(173	)
Russell 2000 Mini; September 2016			Long		253			30,267				31,342		1,075
S&P 500 Emini; September 2016			Short		306			31,671				33,193		(1,522			)
S&P 500 Emini; September 2016			Long		439			46,944				47,621				677
S&P 500 Emini; September 2016			Long		64			6,972				6,942				(30	)
S&P 500 Emini; September 2016			Short		48			4,882				5,207				(325	)
S&P Mid 400 Emini; September 2016			Long		5			759				782				23
S&P/TSX 60 Index; September 2016			Long		9			1,147				1,167				20
SET50 Index; September 2016			Long		53			282				300				18
SGX CNX Nifty Index; September 2016			Short		17			295				301				(6	)
SPI 200 Index; September 2016			Long		11			1,109				1,118				9
UK 10 Year Gilt; December 2016			Short		27			4,663				4,663				—
UK 10 Year Gilt; December 2016			Long		24			4,140				4,145				5
US 10 Year Note; December 2016			Long		666			87,455				87,194				(261	)
US 10 Year Note; December 2016			Long		125			16,353				16,365				12
US 10 Year Note; December 2016			Short		188			24,667				24,613				54
US 10 Year Ultra Note; December 2016			Long		52			7,505				7,507				2
US 10 Year Ultra Note; September 2016			Long		249			35,960				36,058				98
US 2 Year Note; December 2016			Short		49			10,703				10,697				6
US 5 Year Note; December 2016			Short		55			6,665				6,669				(4	)
US 5 Year Note; December 2016			Long		274			33,306				33,222				(84	)
US Long Bond; December 2016			Long		172			29,367				29,304				(63	)
US Long Bond; December 2016			Long		344			58,431				58,609				178
US Ultra Bond; December 2016			Short		485			90,500				90,922				(422	)
US Ultra Bond; September 2016			Long		339			63,411				63,785				374
Total												$		(10,323			)
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
Bank of America NA	3 Month JIBAR	Receive	7.95%	05/08/2025	ZAR		12,600		$	—	$	23	$	23	$	—
Bank of America NA	6 Month CZK	Receive	0.35%	08/03/2021	CZK		177,000			—		(7	)	—		(7	)
	KIBOR


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Interest Rate Swaps (continued)

		(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
Bank of America NA	6 Month CZK	Pay	0.30	%	08/03/2018	CZK	587,800	$	—	$	(3	)	$	— $		(3	)
	KIBOR
Bank of America NA	6 Month CZK	Pay	0.31	%	08/04/2018		70,500		—		—			—		—
	KIBOR
Bank of America NA	6 Month CZK	Receive	0.36	%	08/04/2021		29,300		—		(1	)		—		(1	)
	KIBOR
Bank of America NA	Brazil Cetip	Pay	12.06	%	01/02/2020	BRL	2,445		—		2			2		—
	Interbank Deposit
Bank of America NA	Brazil Cetip	Pay	12.08	%	01/02/2020		6,444		—		5			5		—
	Interbank Deposit
Bank of America NA	CFETS China	Pay	2.57	%	07/07/2021	CNY	8,820		—		(10	)		—		(10	)
	Fixing Repo Rates
	7 Day
Bank of America NA	CFETS China	Pay	2.60	%	07/21/2021		13,000		—		(11	)		—		(11	)
	Fixing Repo Rates
	7 Day
Bank of America NA	CFETS China	Pay	2.64	%	06/29/2021		8,287		—		(5	)		—		(5	)
	Fixing Repo Rates
	7 Day
Bank of America NA	CFETS China	Pay	2.73	%	08/25/2021		8,000		—		(1	)		—		(1	)
	Fixing Repo Rates
	7 Day
Bank of America NA	FBIL - Overnight	Receive	6.39	%	07/16/2021	INR	140,000		—		4			4		—
	MIBOR
Bank of America NA	FBIL - Overnight	Receive	6.45	%	07/21/2021		147,000		—		(2	)		—		(2	)
	MIBOR
Barclays Bank PLC	3 Month JIBAR	Receive	7.95	%	05/05/2025	ZAR	94,000		—		162			162		—
Barclays Bank PLC	Brazil Cetip	Pay	11.84	%	01/02/2020	BRL	5,556		—		(6	)		—		(6	)
	Interbank Deposit
Deutsche Bank AG	6 Month CZK	Receive	0.38	%	07/29/2021	CZK	137,000		—		(13	)		—		(13	)
	LIBOR
Deutsche Bank AG	6 Month CZK	Pay	0.33	%	07/30/2018		350,000		—		5			5		—
	LIBOR
Deutsche Bank AG	MXN TIIE	Pay	6.14	%	07/06/2026	MXN	21,250		—		2			2		—
	Banxico
JP Morgan Chase	3 Month JIBAR	Receive	7.72	%	04/17/2025	ZAR	18,020		—		48			48		—
Merrill Lynch	6 Month CZK	Pay	0.32	%	07/30/2018	CZK	355,000		—		4			4		—
	LIBOR
Merrill Lynch	6 Month CZK	Receive	0.37	%	07/29/2021		142,000		—		(12	)		—		(12	)
	LIBOR
Merrill Lynch	MXN TIIE	Pay	6.13	%	07/06/2026	MXN	67,585		—		5			5		—
	Banxico
Total							$		—	$	189		$	260	$	(71	)

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	1.08	%	07/18/2021	$	26,950	$	—	$	165		$			165
	3 Month LIBOR	Pay	0.86	%	07/18/2018		71,500		—		(229	)				(229	)
	3 Month LIBOR	Receive	1.41	%	07/18/2026		3,924		—		16					16
	6MonthGBP	Pay	0.53	%	07/23/2018	GBP	14,250		—		27
	LIBOR															27
	6MonthGBP	Pay	0.50	%	07/23/2018		14,250		—		18
	LIBOR															18
	6MonthGBP	Receive	0.59	%	07/22/2021		4,750		—		(36	)
	LIBOR															(36	)
	6MonthGBP	Receive	0.62	%	07/21/2021		4,750		—		(44	)
	LIBOR															(44	)
	3 Month LIBOR	Pay	1.03	%	10/01/2018	$	10,591		1		(11	)				(10	)
	3 Month LIBOR	Receive	1.23	%	04/20/2020		1,964		—		(7	)				(7	)
	3 Month LIBOR	Receive	1.21	%	04/22/2021		2,415		—		(4	)				(4	)
	3 Month LIBOR	Receive	1.35	%	06/03/2021		4,698		—		(34	)				(34	)
	3 Month LIBOR	Receive	1.10	%	07/21/2021		5,382		—		24					24
	3 Month LIBOR	Receive	1.18	%	07/29/2021		5,393		1		2					3
	3 Month LIBOR	Pay	0.95	%	08/17/2018		12,930		1		(25	)				(24	)
	3 Month LIBOR	Receive	0.96	%	08/17/2018		12,930		—		22					22


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)
Call - 1 Year Interest Deutsche Bank AG		3 Month			Pay	8.48%	01/10/2017		ZAR166,300	$	70	$	82	$	12
Rate Swap		JIBAR
Put - 10 Year Interest Bank of America NA		ICE LIBOR			Receive	1.70%	09/09/2016		GBP7,500		97		—		(97	)
Rate Swap		GBP 6 Month
Put - 10 Year Interest Merrill Lynch		3 Month			Receive	2.57%	09/20/2016		$33,600		1,035		—		(1,035	)
Rate Swap		LIBOR
Put - 20 Year Interest Bank of America NA		ICE LIBOR			Receive	0.70%	11/21/2016		JPY600,000		87		29		(58	)
Rate Swap		JPY 6 Month
Put - 20 Year Interest Barclays Bank PLC		ICE LIBOR			Receive	0.50%	01/31/2017		556,500		86		91		5
Rate Swap		JPY 6 Month
Total									$		1,375	$	202	$	(1,173	)

					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)
Put - 10 Year Interest Merrill Lynch		3 Month			Receive	3.07%	09/20/2016		$33,600	$	(460	) $	— $		460
Rate Swap		LIBOR
Put - 2 Year Interest	Bank of America NA	3 Month AUD			Receive	1.90%	11/18/2016		AUD40,000		(75	)	(4	)	71
Rate Swap		BBR BBSW
Put - 2 Year Interest	Bank of America NA	ICE LIBOR			Receive	1.00%	12/09/2016		GBP30,000		(106	)	—		106
Rate Swap		GBP 6 Month
Put - 20 Year Interest Barclays Bank PLC		ICE LIBOR			Receive	0.90%	01/31/2017		JPY556,500		(40	)	(33	)	7
Rate Swap		JPY 6 Month
Total									$		(681	) $	(37	) $	644

Amounts in thousands


Options

									Upfront Premiums						Unrealized
Purchased Options Outstanding		Exercise Price			Expiration Date		Contracts		Paid/(Received)				Fair Value		Appreciation/(Depreciation)
Call - 90 Day Eurodollar Future; December 2016$			99.25		12/20/2016		1,977	$	246		$		74	$	(172	)
Call - 90 Day Eurodollar Future; December 2016$			99.38		12/20/2016		4,509		474				56		(418	)
Call - 90 Day Eurodollar Future; March 2017		$	99.25		03/14/2017		7,844		1,715		637				(1,078	)
Call - Allergan PLC		$	325.00		09/19/2016		237		254				—		(254	)
Call - Allergan PLC		$	310.00		09/19/2016		102		111				—		(111	)
Call - DISH Network Corp		$	50.00		01/23/2017		396		211		189				(22	)
Call - MAXIS Nikkei 225 Index		JPY	17,500.00		09/12/2016		51		200				12		(188	)
Call - MAXIS Nikkei 225 Index		JPY	17,500.00		10/17/2016		58		125		110				(15	)
Call - S&P 500 Emini Future; September 2016		$	2,170.00		09/19/2016		48		78				42		(36	)
Call - US 2 Year Note Future; December 2016		$	109.25		09/26/2016		375		67				71		4
Call - US Long Bond Future; December 2016		$	175.00		09/26/2016		104		142				25		(117	)
Call - USD versus BRL		$	3.35		09/15/2016		657,000		3				3		—
Call - USD versus CAD		$	1.32		10/18/2016		5,465,000		29				54		25
Call - USD versus CNH		$	6.50		09/13/2016		2,200,000		57				63		6
Call - USD versus CNY		$	6.75		09/30/2016		4,000,000		34				11		(23	)


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Options (continued)

								Upfront Premiums								Unrealized
Purchased Options Outstanding			Exercise Price	Expiration Date		Contracts		Paid/(Received)			Fair Value		Appreciation/(Depreciation)
Call - USD versus CNY		$	6.75	10/11/2016		4,918,500	$	15		$	18		$				3
Call - USD versus TRY		$	3.05	11/14/2016		1,093,000		24			16						(8	)
Call - USD versus TRY		$	3.05	11/14/2016		1,093,000		17			15						(2	)
Call - USD versus TRY		$	3.05	11/14/2016		1,093,000		18			16						(2	)
Call - USD versus TWD		$	31.78	01/18/2017		8,175,000		151			109						(42	)
Put - 90 Day Eurodollar Future; December 2017 $			98.75	10/17/2016		106		11			12						1
Put - 90 Day Eurodollar Future; December 2018 $			98.63	10/17/2016		400		62			62						—
Put - 90 Day Eurodollar Future; September 2017 $			98.88	09/19/2016		1,852		202			174						(28	)
Put - Icahn Enterprises LP		$	50.00	09/19/2016		128		17			13						(4	)
Put - iShares iBoxx $ High Yield Corporate		$	85.00	09/19/2016		400		37			7						(30	)
Bond ETF
Put - iShares Russell 2000 ETF		$	115.00	10/03/2016		900		111			52						(59	)
Put - S&P 500 Index		$	2,150.00	09/19/2016		56		95			71						(24	)
Put - S&P 500 Index		$	1,875.00	12/19/2016		650		5,585			895					(4,690		)
Put - S&P 500 Index		$	1,875.00	06/19/2017		454		3,806			2,375					(1,431		)
Put - S&P 500 Index		$	1,875.00	03/20/2017		454		2,934			1,499					(1,435		)
Put - SPDR Barclays High Yield Bond ETF		$	35.00	09/19/2016		2,000		46			7						(39	)
Put - USD versus CNH		$	6.53	09/23/2016		1,701,000		10			—						(10	)
Put - USD versus CNY		$	6.56	09/23/2016		2,732,500		4			1						(3	)
Put - USD versus CNY		$	6.56	09/23/2016		5,465,000		8			2						(6	)
Put - USD versus MXN		$	18.40	10/10/2016		1,094,000		13			7						(6	)
Put - USD versus MXN		$	18.15	09/15/2016		657,000		8			1						(7	)
Put - USD versus MXN		$	18.55	10/07/2016		1,639,500		16			14						(2	)
Put - USD versus MXN		$	18.10	10/20/2016		1,641,000		17			7						(10	)
Total							$	16,953		$	6,720		$			(10,233		)

								Upfront Premiums								Unrealized
Written Options Outstanding			Exercise Price	Expiration Date		Contracts		Paid/(Received)			Fair Value		Appreciation/(Depreciation)
Call - 90 Day Eurodollar Future; March 2020		$	98.75	03/13/2017		1,441	$	(584	)	$	(603	)	$				(19	)
Call - Carmike Cinemas Inc		$	30.00	09/19/2016		15		(2	)		(3	)					(1	)
Call - GBP versus USD		$	1.53	09/29/2016		675,000		(14	)		—						14
Call - Halliburton Co		$	49.00	10/24/2016		101		(5	)		(2	)					3
Call - MAXIS Nikkei 225 Index		JPY 18,500.00		10/17/2016		58		(35	)		(24	)					11
Call - Monsanto Co		$	115.00	01/23/2017		10		(4	)		(4	)					—
Call - Monsanto Co		$	115.00	10/24/2016		42		(12	)		(9	)					3
Call - Relypsa Inc		$	32.00	09/19/2016		45		(2	)		—						2
Call - USD versus BRL		$	3.45	11/04/2016		1,094,000		(15	)		(13	)					2
Call - USD versus BRL		$	3.45	11/04/2016		783,000		(8	)		(10	)					(2	)
Call - USD versus BRL		$	3.85	09/14/2016		900,000		(13	)		—						13
Call - USD versus BRL		$	3.48	12/12/2016		819,750		(16	)		(17	)					(1	)
Call - USD versus BRL		$	3.40	11/04/2016		1,094,000		(15	)		(18	)					(3	)
Call - USD versus MXN		$	19.10	11/24/2016		2,732,500		(41	)		(69	)					(28	)
Call - USD versus TRY		$	3.20	11/14/2016		1,093,000		(8	)		(6	)					2
Call - USD versus TRY		$	3.20	11/14/2016		1,093,000		(11	)		(6	)					5
Call - USD versus TRY		$	3.20	11/14/2016		1,093,000		(7	)		(6	)					1
Call - USD versus ZAR		$	15.80	12/12/2016		2,188,000		(56	)		(55	)					1
Call - Whiting Petroleum Corp		$	10.00	10/24/2016		458		(10	)		(7	)					3
Call - Whiting Petroleum Corp		$	9.00	09/19/2016		412		(6	)		(3	)					3
Put - S&P 500 Emini Future; September 2016		$	2,100.00	09/19/2016		48		(66	)		(11	)					55
Put - S&P 500 Index		$	1,725.00	06/19/2017		454		(2,468	)		(1,488	)					980
Put - S&P 500 Index		$	1,725.00	03/20/2017		454		(1,787	)		(866	)					921
Put - USD versus BRL		$	3.20	10/07/2016		783,000		(8	)		(10	)					(2	)
Put - USD versus BRL		$	3.35	09/15/2016		657,000		(9	)		(24	)					(15	)
Put - USD versus BRL		$	3.22	09/15/2016		657,000		(6	)		(7	)					(1	)
Put - USD versus BRL		$	3.10	11/04/2016		1,094,000		(12	)		(7	)					5
Put - USD versus BRL		$	3.20	10/07/2016		1,094,000		(13	)		(13	)					—
Put - USD versus ZAR		$	13.75	11/04/2016		1,094,000		(14	)		(6	)					8
Put - USD versus ZAR		$	13.65	10/07/2016		1,094,000		(13	)		(3	)					10
Total							$	(5,260	)	$	(3,290	)	$			1,970

Amounts in thousands except contracts


Synthetic Futures

											Unrealized					Fair Value
Counterparty (Issuer)	Reference Entity				Expiration Date			Notional Value			Appreciation/(Depreciation)					Asset	Liability
Bank of America NA	Canada 10 Year Bond Future; December 2016				12/30/2016		$	(17,714	)	$			(19	)	$	— $	(19	)
Bank of America NA	Euro Bund 10 Year Bund Future; September				09/12/2016			17,301					219			219	—
	2016
Bank of America NA	Euro Buxl 30 Year Bond Future; September				09/12/2016			392					37			37	—
	2016
Bank of America NA	Euro-Bobl 5 Year Future; September 2016				09/12/2016			9,296					75			75	—


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Synthetic Futures (continued)

						Unrealized						Fair Value
Counterparty (Issuer)	Reference Entity			Expiration Date		Notional Value			Appreciation/(Depreciation)			Asset		Liability
Bank of America NA	Euro-BTP Future; September 2016			09/12/2016	$	3,180	$		53		$	53	$	—
Bank of America NA	Euro-OAT Future; September 2016			09/12/2016		1,925			49			49		—
Bank of America NA	Euro-Schatz 2 Year Future; September 2016			09/12/2016	10,601				7			7		—
Bank of America NA	FTSE China A50 Index Future; September			09/29/2016		293			1			1		—
	2016
Bank of America NA	Hang Seng Index Future; September 2016			09/30/2016		147			1			1		—
Bank of America NA	HSCEI China Index Future; September 2016			09/30/2016		184			—			—		—
Bank of America NA	MSCI Taiwan Index Future; September 2016			09/30/2016		237			(3	)		—		(3	)
Bank of America NA	Tel Aviv 25 Index Future; September 2016			09/30/2016		(508	)		10			10		—
Bank of America NA	UK 10 Year Gilt Future; December 2016			12/30/2016	(6,605		)		(5	)		—		(5	)
Bank of America NA	US 10 Year Note Future; December 2016			12/30/2016		8,402			(23	)		—		(23	)
Bank of America NA	US 2 Year Note Future; December 2016			01/05/2017		656			(1	)		—		(1	)
Bank of America NA	US 5 Year Note Future; December 2016			01/05/2017		4,859			(9	)		—		(9	)
Bank of America NA	US Long Bond Future; December 2016			12/30/2016		1,707			(3	)		—		(3	)
Bank of America NA	US Ultra Bond Future; December 2016			12/30/2016		1,502			(2	)		—		(2	)
Bank of America NA	WIG 20 Index Future; September 2016			09/16/2016		158			6			6		—
Morgan Stanley & Co	BIST 30 Index Future; October 2016			10/31/2016		197			(2	)		—		(2	)
Morgan Stanley & Co	Bovespa Index Future; October 2016			10/14/2016		458			(4	)		—		(4	)
Morgan Stanley & Co	FTSE China A50 Index Future; September			09/29/2016		147			1			1		—
	2016
Morgan Stanley & Co	Hang Seng Index Future; September 2016			09/30/2016		589			3			3		—
Morgan Stanley & Co	HSCEI China Index Future; September 2016			09/30/2016		1,291			2			2		—
Morgan Stanley & Co	KOSPI 200 Index Future; September 2016			09/09/2016		3,669			98			98		—
Morgan Stanley & Co	MSCI Singapore Index Future; September			09/30/2016		24			(1	)		—		(1	)
	2016
Morgan Stanley & Co	MSCI Taiwan Index Future; September 2016			09/30/2016		543			(6	)		—		(6	)
Morgan Stanley & Co	SGX CNX Nifty Index Future; September			09/29/2016	(1,042		)		(19	)		—		(19	)
	2016
Morgan Stanley & Co	Swiss Market Index Future; September 2016			09/16/2016	(10,340		)		(500	)		—		(47	)
Morgan Stanley & Co	Taiwan TAIEX Index Future; September 2016			09/21/2016		2,197			(17	)		—		(17	)
Total						$			(52	)	$	562	$	(161	)

Amounts in thousands
Total Return Equity Basket Swaps

									Notional			Fair Value
Counterparty	Fund Pays			Fund Receives		Expiration Date			Value			Asset		Liability
Bank of America NA	Floating rate based on the Federal Funds	Total return on a custom basket of long and				08/12/2019		$	(493	) $		50	$	—
	Rate plus/less spread		short securities traded in USD
Deutsche Bank AG	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				11/28/2016-			(465	)		—		(144	)
	plus/less spread		short securities traded in USD			03/19/2021
Deutsche Bank AG	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				12/21/2016-			202			83		—
	plus/less spread		short securities traded in TWD			03/20/2017
Deutsche Bank AG	Floating rate based on 1 week LIBOR	Total return on a custom basket of long and				03/20/2017			97			16		—
	plus/less spread		short securities traded in IDR
Deutsche Bank AG	Floating rate based on 28 day Mexico	Total return on a custom basket of long and				03/22/2017			65			92		—
	Interbank TIIE Rate plus/less spread		short securities traded in MXN
Deutsche Bank AG	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				06/15/2017			46			4		—
	plus/less spread		short securities traded in CLP
Deutsche Bank AG	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				03/22/2017			592			16		—
	plus/less spread		short securities traded in BRL
Deutsche Bank AG	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				03/20/2017			9			32		—
	plus/less spread		short securities traded in MYR
Deutsche Bank AG	Floating rate based on 1 week ICE	Total return on a custom basket of long and				09/20/2017			1,344			109		—
	LIBOR CHF plus/less spread		short securities traded in CHF
Deutsche Bank AG	Floating rate based on 1 week EUR	Total return on a custom basket of long and				08/21/2017			255			303		—
	LIBOR plus/less spread		short securities traded in EUR
Deutsche Bank AG	Floating rate based on 1 week LIBOR	Total return on a custom basket of long and				01/19/2017-			3,494			646		—
	plus/less spread		short securities traded in GBP			05/19/2017
Deutsche Bank AG	Floating rate based on 1 week HIBOR	Total return on a custom basket of long and				03/20/2017			176			335		—
	plus/less spread		short securities traded in HKD
Deutsche Bank AG	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				03/20/2017-			106			—		(7	)
	plus/less spread		short securities traded in KRW			03/28/2017
Deutsche Bank AG	Floating rate based on the 1 month South	Total return on a custom basket of long and				03/24/2017			(67	)		—		(93	)
	Africa Johannesburg Interbank Agreed		short securities traded in ZAR
	Rate plus/less spread
Deutsche Bank AG	Floating rate based on the Poland	Total return on a custom basket of long and				03/21/2017			19			—		(48	)
	Warsaw Interbank Offer/Bid Spot Week		short securities traded in PLN
	Rate plus/less spread
Morgan Stanley & Co	Floating rate based on 1 month Euribor	Total return on a custom basket of long and				11/22/2017-			(2,463	)		88		—
	plus/less spread		short securities traded in EUR			05/08/2018
Morgan Stanley & Co	Floating rate based on 1 month LIBOR	Total return on a custom basket of long and				02/28/2017			31,384			894		—
	plus/less spread		short securities traded in GBP

Schedule of Investments

Global Multi-Strategy Fund

August 31, 2016

Total Return Equity Basket Swaps (continued)

Notional

Fair Value

Counterparty

Fund Pays

Fund Receives

Expiration Date

Value

Asset

Liability

Morgan Stanley & Co

Floating rate based on 1 month LIBOR

Total return on a custom basket of long and

08/22/2017

- $

5,036

— $

(726

)

plus/less spread

short securities traded in USD

10/11/2017

Morgan Stanley & Co

Floating rate based on the Bank of Japan

Total return on a custom basket of long and

08/23/2018

373

158

—

Estimate Unsecured Overnight Call Rate

short securities traded in JPY

plus/less spread

Morgan Stanley & Co

Floating rate based on the Federal Funds

Total return on a custom basket of long and

09/14/2016

6,176

4,904

—

Rate plus/less spread

short securities traded in USD

Total

45,886

7,730

(1,018

)

The expiration dates are measured from the commencement of investment in each underlying swap position.

Amounts in thousands

Total Return Swaps

Pay/Receive

Financing

Notional

Fair Value

Counterparty (Issuer)

Reference Entity

Contracts

Positive Return

Rate

Expiration Date

Amount

Asset

Liability

Morgan Stanley & Co

MSCI Netherlands Net

193,108

Pay

Euribor 1 Month minus .15%

09/21/2016

EUR

— $

)

Return EUR Index

Morgan Stanley & Co

MSCI Italy Net Return EUR

287,705

Pay

Euribor 1 Month minus .25%

09/21/2016

—

)

Index

Morgan Stanley & Co

MSCI Italy Net Return EUR

126,915

Pay

Euribor 1 Month minus .25%

09/21/2016

—

)

Index

Morgan Stanley & Co

MSCI Italy Net Return EUR

99,459

Pay

Euribor 1 Month minus .25%

09/21/2016

—

)

Index

Morgan Stanley & Co

MSCI Italy Net Return EUR

133,257

Pay

Euribor 1 Month minus .25%

09/21/2016

—

)

Index

Morgan Stanley & Co

MSCI Italy Net Return EUR

636,586

Pay

Euribor 1 Month minus .25%

09/21/2016

—

(20

)

Index

Morgan Stanley & Co

MSCI Turkey Net Return

Receive

1 Month TRLIBOR plus .55%

09/21/2016

TRY

—

)

TRY Index

Morgan Stanley & Co

MSCI South Africa Net

1,393,185

Pay

SAFE South Africa

09/21/2016

ZAR

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Morgan Stanley & Co

MSCI South Africa Net

3,553,364

Pay

SAFE South Africa

09/21/2016

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Morgan Stanley & Co

MSCI South Africa Net

1,569,186

Pay

SAFE South Africa

09/21/2016

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Morgan Stanley & Co

MSCI South Africa Net

3,729,364

Pay

SAFE South Africa

09/21/2016

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Morgan Stanley & Co

MSCI South Africa Net

2,451,043

Pay

SAFE South Africa

09/21/2016

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Morgan Stanley & Co

MSCI South Africa Net

1,348,843

Pay

SAFE South Africa

09/21/2016

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Morgan Stanley & Co

MSCI South Africa Net

2,569,726

Pay

SAFE South Africa

09/21/2016

—

Return ZAR Index

Johannesburg Interbank Agreed

Rate 1 Month minus .80%

Total

(45

)

Amounts in thousands except contracts


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Short Sales Outstanding



COMMON STOCKS - (12.38)%	Shares	Value(000			's)	COMMON STOCKS (continued)	Shares	Value(000			's)

Advertising - 0.00%						Banks (continued)
DKSH Holding AG	1,119		$	78		Swedbank AB	3,787		$	87
						UniCredit SpA	120,128			309
						Unione di Banche Italiane SpA	72,494			195
Aerospace & Defense - (0.23)%						United Bankshares Inc/WV	1,815			71
Boeing Co/The	4,010			519		Zions Bancorporation	22,378			685
Kaman Corp	6,950			312				$		14,159
Northrop Grumman Corp	8,920			1,892
Orbital ATK Inc	6,610			499		Beverages - (0.21)%
TransDigm Group Inc ^(a)	8,510			2,427		Anheuser-Busch InBev SA/NV	3,514			436
United Technologies Corp	4,830			514		Brown-Forman Corp - B Shares	7,960			386
		$		6,163		Constellation Brands Inc	14,050			2,305
						Molson Coors Brewing Co	10,980			1,124
Agriculture - (0.11)%						Monster Beverage Corp ^(a)	8,140			1,253
Reynolds American Inc	61,237			3,036				$		5,504

						Biotechnology - (0.14)%
Airlines - (0.22)%						Acorda Therapeutics Inc ^(a)	9,560			230
Alaska Air Group Inc	23,328			1,575		Biogen Inc ^(a)	2,130			651
Delta Air Lines Inc	30,741			1,130		Celgene Corp ^(a)	5,740			613
Deutsche Lufthansa AG	903			10		Illumina Inc ^(a)	3,840			646
JetBlue Airways Corp ^(a)	71,150			1,135
						Medicines Co/The ^(a)	23,030			902
Southwest Airlines Co	59,790			2,205		Regeneron Pharmaceuticals Inc ^(a)	1,000			393
		$		6,055		United Therapeutics Corp ^(a)	2,210			270
Apparel - (0.28)%								$		3,705
Hanesbrands Inc	136,342			3,619
						Building Materials - (0.08)%
NIKE Inc	45,460			2,620
						Buzzi Unicem SpA	2,509			53
VF Corp	20,940			1,299
						Geberit AG	295			129
		$		7,538		LafargeHolcim Ltd ^(a)	6,534			347
Automobile Manufacturers - (0.11)%						Martin Marietta Materials Inc	3,170			580
Bayerische Motoren Werke AG	6,071			527		Vulcan Materials Co	8,140			927
Daimler AG	10,069			697				$		2,036
Fiat Chrysler Automobiles NV	49,791			343
						Chemicals - (0.24)%
PACCAR Inc	17,110			1,024
						Air Products & Chemicals Inc	20,390			3,173
Volvo AB - B Shares	26,387			283
						Albemarle Corp	6,413			513
		$		2,874		BASF SE	1,028			83
Automobile Parts & Equipment - (0.19)%						EI du Pont de Nemours & Co	25,421			1,769
Continental AG	444			93		EMS-Chemie Holding AG	110			59
Delphi Automotive PLC	38,630			2,730		K+S AG	7,355			154
Goodyear Tire & Rubber Co/The	39,000			1,145		Novozymes A/S	5,146			223
Johnson Controls Inc	19,922			874		OCI NV ^(a)	14,010			246
Meritor Inc ^(a)	20,854			232		Solvay SA	840			92
Nokian Renkaat OYJ	4,637			167		Stepan Co	5,806			408
		$		5,241		Symrise AG	236			17
						Wacker Chemie AG	1,738			162
Banks - (0.51)%								$		6,899
Banca Generali SpA	10,618			213
Banca Mediolanum SpA	10,755			75		Commercial Services - (0.30)%
Banca Popolare dell'Emilia Romagna SC	6,921			27		Abertis Infraestructuras SA	4,801			74
Banco de Sabadell SA	102,958			140		Career Education Corp ^(a)	73,200			479
Banco Popular Espanol SA	211,761			286		Global Payments Inc	22,200			1,686
Bank of America Corp	28,190			455		Live Nation Entertainment Inc ^(a)	26,300			702
Bankia SA	65,818			55		ManpowerGroup Inc	5,239			374
CaixaBank SA	118,595			320		RELX NV	11,827			210
Canadian Imperial Bank of Commerce/Canada	4,825			383		S&P Global Inc	23,790			2,939
Capital One Financial Corp	16,002			1,146		Securitas AB	2,707			47
Chemical Financial Corp	11,007			509		SGS SA	105			231
Citizens Financial Group Inc	29,850			739		Sotheby's	16,290			646
Credit Suisse Group AG ^(a)	40,183			524		United Rentals Inc ^(a)	7,495			617
Deutsche Bank AG ^(a)	5,539			81		Verisk Analytics Inc ^(a)	7,857			653
DNB ASA	56			1		Wirecard AG	1,008			50
FinecoBank Banca Fineco SpA	9,440			57				$		8,708
FNB Corp/PA	30,732			384
						Computers - (0.09)%
Hope Bancorp Inc	496			8		CACI International Inc ^(a)	3,090			307
KeyCorp	48,898			614		Dell Technologies Inc ^(a)	195			9
M&T Bank Corp	22,050			2,609
						Diebold Inc	5,699			160
Nordea Bank AB	3,771			37
Signature Bank/New York NY ^(a)	22,800			2,782		DST Systems Inc	3,427			416
						Fortinet Inc ^(a)	31,320			1,132
Skandinaviska Enskilda Banken AB	19,491			190
SVB Financial Group ^(a)	9,480			1,053		Gemalto NV	2,275			159
						Western Digital Corp	1			—
Svenska Handelsbanken AB	9,587			124
								$		2,183


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Short Sales Outstanding


COMMON STOCKS (continued)	Shares			Value(000 's)	COMMON STOCKS (continued)		Shares		Value(000 's)
COMMON STOCKS (continued)	Shares			Value(000 's)	COMMON STOCKS (continued)		Shares		Value(000 's)
Cosmetics & Personal Care - (0.04)%					Food - (0.62)%
Beiersdorf AG		129	$	12	Axfood AB	5,172		$	92
Estee Lauder Cos Inc/The	11,642			1,039	B&G Foods Inc	22,040			1,046
Unilever NV	2,569			118	Barry Callebaut AG ^(a)		305		392
		$		1,169	Chocoladefabriken Lindt & Spruengli AG		49		284
					Chr Hansen Holding A/S	3,819			232
Diversified Financial Services - (0.47)%					Colruyt SA	3,048			168
Affiliated Managers Group Inc ^(a)	6,360			904
					Distribuidora Internacional de Alimentacion	37,830			231
Azimut Holding SpA	25,939			398	SA
Charles Schwab Corp/The	67,568			2,126	Hormel Foods Corp	57,200			2,188
Discover Financial Services	19,210			1,152	JM Smucker Co/The	3,750			532
E*TRADE Financial Corp ^(a)	78,630			2,074
					Koninklijke Ahold Delhaize NV ^(a)		587		14
Element Financial Corp	14,216			148	Kraft Heinz Co/The	26,610			2,381
Interactive Brokers Group Inc - A Shares	28,949			1,039	Kroger Co/The	80,310			2,569
Julius Baer Group Ltd ^(a)	2,085			87
					Marine Harvest ASA ^(a)	7,313			113
MasterCard Inc	5,040			487	Mondelez International Inc	71,580			3,223
Nasdaq Inc	12,060			859	Nestle SA		780		62
Raymond James Financial Inc	10,830			630	Post Holdings Inc ^(a)	1,253			106
Synchrony Financial	61,860			1,721	Tyson Foods Inc	45,805			3,462
Visa Inc	17,400			1,408			$		17,095
		$		13,033
					Forest Products & Paper - 0.00%
Electric - (0.24)%					Stora Enso OYJ		337		3
Avista Corp	13,830			562
Black Hills Corp	8,944			523
Consolidated Edison Inc	5,870			442	Gas - (0.20)%
Dynegy Inc ^(a)	10,040			127	Atmos Energy Corp	4,200			309
E.ON SE	1,099			10	Gas Natural SDG SA	5,148			106
EDP - Energias de Portugal SA	9,094			31	NiSource Inc	39,360			942
Fortis Inc/Canada	23,300			733	Sempra Energy	7,750			811
Fortum OYJ	5,265			81	South Jersey Industries Inc	10,214			303
Great Plains Energy Inc	5,679			154	Southwest Gas Corp	4,550			318
MDU Resources Group Inc	72,180			1,701	Spire Inc	17,000			1,100
NorthWestern Corp	5,380			311	UGI Corp	34,381			1,564
NRG Yield Inc - A Shares	10,509			169			$		5,453
NRG Yield Inc - C Shares	2,680			45
					Hand & Machine Tools - (0.05)%
OGE Energy Corp	11,530			359
					Lincoln Electric Holdings Inc	16,036			1,019
PNM Resources Inc	14,300			455
RWE AG ^(a)	8,386			137	Sandvik AB	30,577			332
SCANA Corp	11,820			835			$		1,351
		$		6,675	Healthcare - Products - (0.46)%
					Abbott Laboratories	18,739			787
Electrical Components & Equipment - (0.05)%					ABIOMED Inc ^(a)	6,450			761
Acuity Brands Inc	5,370			1,477	Align Technology Inc ^(a)	18,130			1,684
General Cable Corp	1,901			31	Boston Scientific Corp ^(a)	102,440			2,440
SunPower Corp ^(a)	6,685			67
					Coloplast A/S	1,282			97
		$		1,575	Cooper Cos Inc/The	2,974			553
Electronics - (0.13)%					Edwards Lifesciences Corp ^(a)	26,103			3,006
Arrow Electronics Inc ^(a)	25,860			1,702	Henry Schein Inc ^(a)	6,280			1,029
Electro Scientific Industries Inc ^(a)	19,738			110	QIAGEN NV ^(a)	12,812			339
Itron Inc ^(a)	10,810			515	Sonova Holding AG		332		46
TTM Technologies Inc ^(a)	47,082			505	Teleflex Inc	5,590			1,023
Vishay Intertechnology Inc	19,695			279	William Demant Holding A/S ^(a)	8,616			180
Woodward Inc	9,510			596	Zimmer Biomet Holdings Inc	4,735			614
		$		3,707			$		12,559

Energy - Alternate Sources - (0.05)%					Healthcare - Services - (0.51)%
REX American Resources Corp ^(a)	18,000			1,448	Aetna Inc	37,632			4,408
					Amsurg Corp ^(a)	17,946			1,165
					Anthem Inc	47,095			5,890
Engineering & Construction - (0.06)%					Centene Corp ^(a)	15,260			1,042
Acciona SA	1,680			120	HCA Holdings Inc ^(a)	13,040			985
Aena SA	1,340			189	UnitedHealth Group Inc	4,520			615
Fraport AG Frankfurt Airport Services	2,634			147
							$		14,105
Worldwide
Jacobs Engineering Group Inc ^(a)	21,493			1,132	Home Builders - (0.19)%
		$		1,588	DR Horton Inc	63,970			2,051
					Lennar Corp - A Shares	64,630			3,057
Entertainment - (0.01)%							$		5,108
AMC Entertainment Holdings Inc	2,136			65
Lions Gate Entertainment Corp	3,220			68	Home Furnishings - (0.02)%
Vail Resorts Inc	1,110			176	Harman International Industries Inc	7,640			647
		$		309


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Short Sales Outstanding



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

Housewares - (0.04)%						Media (continued)
Newell Brands Inc	22,640		$	1,202		Nexstar Broadcasting Group Inc	2,882		$	152
						ProSiebenSat.1 Media SE	1,533			66
						Schibsted ASA - A Shares	12,734			404
Insurance - (0.72)%
						Schibsted ASA - B Shares		533		15
Aegon NV	25,349			104
						Scripps Networks Interactive Inc	29,740			1,884
Aflac Inc	20,510			1,522		Telenet Group Holding NV ^(a)	4,730			222
Allstate Corp/The	31,150			2,148
						Time Inc	22,840			322
Assurant Inc	28,970			2,594
Berkshire Hathaway Inc - Class B ^(a)	8,060			1,213		Time Warner Inc	5,910			464
						Walt Disney Co/The	11,320			1,069
Endurance Specialty Holdings Ltd	16,670			1,098
First American Financial Corp	19,440			838				$		5,411
Loews Corp	17,610			737		Metal Fabrication & Hardware - (0.03)%
Mapfre SA	17,154			47		Assa Abloy AB	10,445			211
Marsh & McLennan Cos Inc	27,750			1,877		Tenaris SA	45,606			628
Old Republic International Corp	52,520			1,010				$		839
Primerica Inc	64,681			3,682
Sampo Oyj	5,173			222		Mining - (0.06)%
Stewart Information Services Corp	7,320			335		Alcoa Inc	150,570			1,518
Topdanmark A/S ^(a)	6,844			183		Norsk Hydro ASA	1,458			6
Tryg A/S	18,796			376				$		1,524
UnipolSai SpA	62,894			105		Miscellaneous Manufacturers - (0.13)%
Unum Group	34,340			1,223		Alfa Laval AB	20,020			311
XL Group Ltd	16,785			574		Donaldson Co Inc	11,560			434
		$		19,888		Hexpol AB	9,186			84
Internet - (0.32)%						Textron Inc	27,370			1,118
Alibaba Group Holding Ltd ADR^(a)	19,464			1,892		Trinity Industries Inc	59,225			1,446
Expedia Inc	16,230			1,771		Wartsila OYJ Abp		949		39
Facebook Inc ^(a)	5,380			678				$		3,432
New Media Investment Group Inc	56,297			900
Priceline Group Inc/The ^(a)		445		630		Office & Business Equipment - (0.02)%
						Pitney Bowes Inc	34,570			649
United Internet AG		939		38
VeriSign Inc ^(a)	37,589			2,798
		$		8,707		Oil & Gas - (0.23)%
						Cheniere Energy Inc ^(a)	3,387			145
Investment Companies - (0.01)%						Concho Resources Inc ^(a)	3,510			454
Ares Capital Corp	9,501			153		Eni SpA	5,658			86
						Newfield Exploration Co ^(a)	14,100			611
Iron & Steel - (0.02)%						Patterson-UTI Energy Inc	48,500			945
Acerinox SA	3,296			41		Range Resources Corp	12,547			484
APERAM SA	2,664			110		Statoil ASA	6,066			95
ArcelorMittal ^(a)	57,744			343		Tesoro Corp	18,520			1,397
						Transocean Ltd ^(a)	3,403			33
thyssenkrupp AG	2,337			54
		$		548		Valero Energy Corp	12,250			678
						Western Refining Inc	48,380			1,217
Leisure Products & Services - (0.04)%						Whiting Petroleum Corp ^(a)	5,847			43
Royal Caribbean Cruises Ltd	15,270			1,086				$		6,188

						Oil & Gas Services - (0.15)%
Lodging - (0.05)%						Dril-Quip Inc ^(a)	31,118			1,729
Marriott International Inc/MD	18,270			1,303		Halliburton Co	6,480			279
						Saipem SpA ^(a)	72,924			33
Machinery - Construction & Mining - (0.01)%						SBM Offshore NV	37,740			554
						SEACOR Holdings Inc ^(a)	18,000			1,058
Atlas Copco AB - A Shares	11,726			332
						Technip SA	3,135			186
						TETRA Technologies Inc ^(a)	48,260			292
Machinery - Diversified - (0.11)%						TGS Nopec Geophysical Co ASA	2,480			43
AGCO Corp	6,860			333				$		4,174
CNH Industrial NV	29,431			215
Duerr AG	1,008			85		Packaging & Containers - (0.16)%
Hexagon AB	8,408			342		Ball Corp	56,490			4,473
Kone OYJ	4,112			207
Nordson Corp	14,540			1,436		Pharmaceuticals - (0.24)%
Wabtec Corp/DE	5,110			392		Allergan plc ^(a)	11,036			2,589
Zardoya Otis SA	14,993			141		Depomed Inc ^(a)	19,620			398
		$		3,151		McKesson Corp	6,320			1,167
Media - (0.20)%						Merck KGaA	6,354			668
Altice NV - A Shares ^(a)	26,645			445		Mylan NV ^(a)	13,639			578
Atresmedia Corp de Medios de Comunicacion	16,259			192		Novartis AG	1,576			124
SA						Roche Holding AG		385		94
Axel Springer SE		464		24		Teva Pharmaceutical Industries Ltd ADR	15,708			791
Modern Times Group MTG AB	6,035			152


Schedule of Investments
Global Multi-Strategy Fund
August 31, 2016


Short Sales Outstanding



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

Pharmaceuticals (continued)						Semiconductors (continued)
UCB SA		783	$	64		ASML Holding NV		373	$	40
		$		6,473		Broadcom Ltd	14,400			2,540
						Cavium Inc ^(a)		1		—
Pipelines - (0.05)%						Intel Corp	133,869			4,805
Koninklijke Vopak NV	5,486			279		Lam Research Corp	156,929			14,644
ONEOK Inc	22,030			1,033		Microchip Technology Inc	24,764			1,533
		$		1,312		Micron Technology Inc ^(a)	27,349			451
Private Equity - 0.00%						NVIDIA Corp	173,217			10,625
						ON Semiconductor Corp ^(a)	17,714			191
Icahn Enterprises LP	1,979			103
						Rambus Inc ^(a)	40,150			555
						Rovi Corp ^(a)	18,176			372
REITS - (0.62)%						Skyworks Solutions Inc	12,970			971
Colony Capital Inc	31,884			589				$		37,407
Cousins Properties Inc	21,749			240
Crown Castle International Corp	11,680			1,107		Shipbuilding - (0.04)%
Equinix Inc	4,553			1,678		Huntington Ingalls Industries Inc	7,100			1,173
Healthcare Realty Trust Inc	51,807			1,816
LTC Properties Inc	17,060			886		Software - (0.48)%
Medical Properties Trust Inc	70,610			1,078		Activision Blizzard Inc	61,250			2,534
Mid-America Apartment Communities Inc	4,723			444		Akamai Technologies Inc ^(a)	30,720			1,686
Spirit Realty Capital Inc	37,972			503		Amadeus IT Group SA	6,550			301
Starwood Property Trust Inc	28,066			643		Broadridge Financial Solutions Inc	9,405			652
Summit Hotel Properties Inc	137,630			1,968		Electronic Arts Inc ^(a)	63,110			5,126
Ventas Inc	34,040			2,474		IMS Health Holdings Inc ^(a)	32,584			972
Welltower Inc	46,517			3,570		SAP SE	5,020			441
		$		16,996		Take-Two Interactive Software Inc ^(a)	23,850			1,037
						Tyler Technologies Inc ^(a)	2,890			474
Retail - (0.78)%
Advance Auto Parts Inc	23,110			3,637				$		13,223
AutoNation Inc ^(a)	15,560			737
						Telecommunications - (0.34)%
Bed Bath & Beyond Inc	2,937			136		BCE Inc	12,115			566
Best Buy Co Inc	47,535			1,829		Cellnex Telecom SA	18,063			315
Cie Financiere Richemont SA	6,237			359		Ciena Corp ^(a)	16,959			364
CVS Health Corp	5,980			559		Deutsche Telekom AG	7,992			133
Dick's Sporting Goods Inc	14,189			832		Freenet AG	1,495			43
Dillard's Inc	2,141			129		General Communication Inc ^(a)	17,560			244
DineEquity Inc	5,470			427		GN Store Nord A/S	4,759			102
Dollar Tree Inc ^(a)	23,291			1,926
						Koninklijke KPN NV	46,590			152
Domino's Pizza Inc	9,590			1,434		Leap Wireless International Inc - Rights ^(a),(b),(c)	7,565			24
Dufry AG ^(a)		918		107
						Level 3 Communications Inc ^(a)	46,732			2,319
First Cash Financial Services Inc	3,617			187		Millicom International Cellular SA	1,507			77
Foot Locker Inc	18,887			1,240		Nokia OYJ	63,877			360
GameStop Corp	4,833			137		Palo Alto Networks Inc ^(a)	8,664			1,154
Gap Inc/The	5,824			145		SES SA	14,290			329
GNC Holdings Inc	5,243			110		Tele2 AB	56,560			470
Hennes & Mauritz AB	12,024			366		Telecom Italia SpA/Milano ^(a)	238,674			217
HUGO BOSS AG	3,132			191		Telefonica Deutschland Holding AG	25,779			106
JC Penney Co Inc ^(a)	170,011			1,603
						Telefonica SA	6,456			65
Kohl's Corp	3,382			150		Telenor ASA		770		14
L Brands Inc	1,867			142		T-Mobile US Inc ^(a)	51,685			2,395
Luxottica Group SpA	8,115			392
								$		9,449
Macy's Inc	3,787			137
Nordstrom Inc	3,326			168		Textiles - (0.03)%
Pandora A/S		722		90		Mohawk Industries Inc ^(a)	4,130			879
Salvatore Ferragamo SpA	19,853			453
Starbucks Corp	19,730			1,109
						Transportation - (0.20)%
Swatch Group AG/The	1,571			405
Ulta Salon Cosmetics & Fragrance Inc ^(a)	3,200			791		FedEx Corp	7,860			1,296
						Heartland Express Inc	26,850			511
Walgreens Boots Alliance Inc	7,960			642
						Kuehne + Nagel International AG	1,107			155
Williams-Sonoma Inc	2,465			130		Old Dominion Freight Line Inc ^(a)	20,390			1,450
World Fuel Services Corp	23,525			1,049
Zalando SE ^(a)		262		10		Ship Finance International Ltd	23,869			360
						Union Pacific Corp	16,220			1,550
		$		21,759		YRC Worldwide Inc ^(a)	16,895			196
Savings & Loans - (0.08)%								$		5,518
BofI Holding Inc ^(a)	65,847			1,416

New York Community Bancorp Inc	47,194			713		Water - (0.06)%
						American Water Works Co Inc	7,260			537
		$		2,129		California Water Service Group	32,610			995
Semiconductors - (1.35)%								$		1,532
ams AG	9,930			337		TOTAL COMMON STOCKS (proceeds $311,576)		$		341,017
Analog Devices Inc	5,482			343


PREFERRED STOCKS - (0.04)%			Shares	Value(000			's)				Principal
								BONDS (continued)		Amount (000's)		Value (000's)
Automobile Manufacturers - (0.02)%
Volkswagen AG 0.17%			3,539		$	490		Sovereign (continued)
								Turkey Government International Bond
									7.38%, 02/05/2025	$	2,027	$	2,438
Automobile Parts & Equipment - 0.00%
Schaeffler AG 0.35%			1,700			26					$		16,729
								TOTAL BONDS (proceeds $47,831)			$		49,659
								U.S. GOVERNMENT & GOVERNMENT			Principal
Chemicals - (0.01)%								AGENCY OBLIGATIONS - (11.95)%		Amount (000's) Value (000's)
FUCHS PETROLUB SE 0.82%			7,067			321
								U.S. Treasury - (11.95)%
									0.75%, 07/15/2019	$	16,421	$	16,349
Consumer Products - (0.01)%									0.88%, 06/15/2019		1,231		1,230
Henkel AG & Co KGaA 1.47%			554			73			1.13%, 07/31/2021		3,476		3,465
									1.38%, 01/31/2021		661		667
Electronics - 0.00%									1.50%, 08/15/2026		3,043		3,024
Sartorius AG 0.38%			848			67			1.63%, 05/15/2026		65,781		66,030
									2.50%, 05/15/2046		88,820		94,007
TOTAL PREFERRED STOCKS (proceeds $884)				$		977			3.00%, 11/15/2045		13,317		15,519
		Principal							3.13%, 11/15/2041		50,948		60,503
BONDS- (1.80	)%	Amount (000's) Value (000's)							4.50%, 02/15/2036		32,790		46,877
									5.38%, 02/15/2031		7,034		10,339
Chemicals - (0.03)%									6.25%, 05/15/2030		7,074		11,005
Chemours Co/The											$		329,015
6.63%, 05/15/2023		$		750	$	720		TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY $					329,015
								OBLIGATIONS (proceeds $328,906)
Commercial Services - (0.07)%								TOTAL SHORT SALES (proceeds $689,197)			$		720,668
United Rentals North America Inc
5.75%, 11/15/2024			1,969			2,058

								(a)	Non-Income Producing Security
Diversified Financial Services - (0.06)%								(b)	Fair value of these investments is determined in good faith by the Manager
International Lease Finance Corp									under procedures established and periodically reviewed by the Board of
5.88%, 08/15/2022			1,436			1,621			Directors. At the end of the period, the fair value of these securities totaled
									$24 or 0.85% of net assets.
								(c)	Security is Illiquid. At the end of the period, the value of these securities
Electric - (0.48)%									totaled $24 or 0.85% of net assets.

Saudi Electricity Global Sukuk Co 2
3.47%, 04/08/2023			13,000			13,325

Lodging - (0.04)%
Wynn Las Vegas LLC / Wynn Las Vegas
Capital Corp
5.50%, 03/01/2025			1,000			1,010


Mining - (0.24)%
Rio Tinto Finance PLC
2.88%, 12/11/2024		EUR	5,000			6,674


Pharmaceuticals - (0.24)%
Endo Finance LLC
5.75%, 01/15/2022		$	2,000			1,864
Valeant Pharmaceuticals International Inc
5.38%, 03/15/2020			5,000			4,712
				$		6,576

Retail - (0.03)%
Macy's Retail Holdings Inc
4.50%, 12/15/2034			1,000			946


Sovereign - (0.61)%
Colombia Government International Bond
4.00%, 02/26/2024			1,810			1,905
5.00%, 06/15/2045				556		602
Kazakhstan Government International Bond
5.13%, 07/21/2025			2,465			2,771
Oman Government International Bond
4.75%, 06/15/2026			5,000			5,171
South Africa Government International Bond
4.88%, 04/14/2026			3,694			3,842


Schedule of Investments
Global Opportunities Equity Hedged Fund
August 31, 2016



COMMON STOCKS - 97.08%	Shares Held	Value (000's)		COMMON STOCKS (continued)	Shares Held		Value(000		's)
Advertising - 0.90%				Engineering & Construction (continued)
Interpublic Group of Cos Inc/The	2,676	$	62	Obayashi Corp	6,000	$		56
				Promotora y Operadora de Infraestructura	3,100			37
Agriculture - 5.70%				SAB de CV
British American Tobacco PLC	2,314		144	Vinci SA	1,385			105
Imperial Brands PLC	1,341		70			$		307
KT&G Corp	657		69	Environmental Control - 0.71%
Philip Morris International Inc	1,115		111	Waste Management Inc	765			49
		$	394
Apparel - 0.52%				Food - 1.81%
Adidas AG	219		36	Koninklijke Ahold Delhaize NV ^(b)	2,289			55
				Kroger Co/The	2,187			70
Automobile Manufacturers - 0.55%						$		125
Guangzhou Automobile Group Co Ltd	28,000		38	Food Service - 1.07%
				Compass Group PLC	3,933			74
Automobile Parts & Equipment - 0.90%
Toyota Industries Corp	1,300		62	Gas - 1.06%
				National Grid PLC	5,299			73
Banks - 8.69%
77 Bank Ltd/The	10,000		42	Healthcare - Services - 2.79%
Bank of Nova Scotia/The	1,100		59	Anthem Inc	632			79
BNP Paribas SA	1,303		66	Centene Corp ^(b)	1,668			114
JPMorgan Chase & Co	2,758		186			$		193
Mitsubishi UFJ Financial Group Inc	10,100		56	Holding Companies - Diversified - 0.61%
Sumitomo Mitsui Financial Group Inc	1,100		38	Wharf Holdings Ltd/The	6,000			42
Sumitomo Mitsui Trust Holdings Inc	26,000		93
SunTrust Banks Inc	1,375		61	Insurance - 5.57%
		$	601	Everest Re Group Ltd	274			53
Beverages - 0.74%				NN Group NV	1,959			58
Diageo PLC	1,853		51	Prudential Financial Inc	679			54
				SCOR SE	2,114			62
Biotechnology - 7.49%				Swiss Re AG	624			53
Amgen Inc ^(a)	1,140		194	Travelers Cos Inc/The	589			70
Charles River Laboratories International Inc	765		64	Unum Group	982			35
(b)						$		385
Genmab A/S ^(b)	192		31	Internet - 4.99%
Gilead Sciences Inc ^(a)	2,927		229	Alphabet Inc - A Shares ^(b)	202			160
		$	518	Auto Trader Group PLC ^(c)	6,294			31
Chemicals - 0.72%				Facebook Inc ^(b)	532			67
Lonza Group AG ^(b)	264		50	Symantec Corp	1,921			46
				Tencent Holdings Ltd	1,600			41
Commercial Services - 3.08%						$		345
AMN Healthcare Services Inc ^(b)	1,195		43	Machinery - Construction & Mining - 1.45%
Aramark	1,781		68	ABB Ltd ^(b)	2,381			52
Qualicorp SA	5,200		36	Hitachi Ltd	10,000			48
Total System Services Inc	1,331		66			$		100
		$	213	Machinery - Diversified - 0.82%
Computers - 4.73%				Mitsubishi Heavy Industries Ltd	13,000			57
Accenture PLC - Class A	1,196		138
Capgemini SA	1,004		98	Media - 0.88%
Synopsys Inc ^(b)	1,538		91	CBS Corp	1,193			61
		$	327
Cosmetics & Personal Care - 1.01%				Mining - 1.08%
Unilever NV	1,530		70	Barrick Gold Corp	2,013			34
				Kinross Gold Corp ^(b)	10,200			41
Distribution & Wholesale - 0.55%						$		75
HD Supply Holdings Inc ^(b)	1,054		38	Miscellaneous Manufacturers - 1.85%
				Siemens AG	1,074			128
Diversified Financial Services - 0.52%
ORIX Corp	2,500		36	Oil & Gas - 1.79%
				Exxon Mobil Corp	409			36
Electric - 3.08%				Lukoil PJSC ADR	941			42
Exelon Corp	1,640		56	Seven Generations Energy Ltd ^(b)	2,000			46
Iberdrola SA	9,307		61			$		124
Korea Electric Power Corp	1,138		59	Packaging & Containers - 0.69%
Tenaga Nasional BHD	10,000		37	Packaging Corp of America	615			48
		$	213
Electronics - 0.85%				Pharmaceuticals - 6.09%
Honeywell International Inc	506		59	AbbVie Inc	1,912			123
				Pfizer Inc	3,826			133
Engineering & Construction - 4.44%				Shire PLC	1,555			97
Aena SA ^(c)	267		38	VCA Inc ^(b)	957			68
Eiffage SA	487		38			$		421
EMCOR Group Inc	573		33


COMMON STOCKS (continued)	Shares Held		Value(000	's)	Portfolio Summary (unaudited)
Pipelines - 0.85%					Country	Percent
TransCanada Corp	1,300	$	59		United States	49.15	%
					Japan	8.61	%
Private Equity - 0.78%					United Kingdom	8.22	%
3i Group PLC	6,724		54		France	7.01	%
					Canada	5.09	%
Real Estate - 1.13%					China	2.73	%
Brookfield Asset Management Inc	2,300		78		Korea, Republic Of	2.63	%
					Germany	2.38	%
REITS - 1.78%					Switzerland	2.23	%
Digital Realty Trust Inc	400		40		Ireland	1.99	%
Extra Space Storage Inc	554		45		Netherlands	1.65	%
Mid-America Apartment Communities Inc	409		38		Spain	1.44	%
		$	123		Brazil	1.27	%
Retail - 1.34%					Bermuda	0.77	%
Alimentation Couche-Tard Inc	700		36		Indonesia	0.71	%
CVS Health Corp	614		57		Hong Kong	0.61	%
		$	93		Russian Federation	0.61	%
Semiconductors - 2.01%					Taiwan, Province Of China	0.56	%
Samsung Electronics Co Ltd	37		54		Mexico	0.54	%
Taiwan Semiconductor Manufacturing Co Ltd	7,000		39		Malaysia	0.52	%
Tokyo Electron Ltd	500		46		Denmark	0.44	%
		$	139		Other Assets and Liabilities	0.84	%
Shipbuilding - 0.85%					TOTAL NET ASSETS	100.00	%
Huntington Ingalls Industries Inc	355		59

Software - 2.76%
Microsoft Corp ^(a)	2,240		129
NetEase Inc ADR	293		62
		$	191
Telecommunications - 6.19%
AT&T Inc	847		35
China Telecom Corp Ltd	90,000		46
Cisco Systems Inc	5,863		184
NTT DOCOMO Inc	2,500		63
Orange SA	3,351		51
Telekomunikasi Indonesia Persero Tbk PT	154,400		49
		$	428
Water - 1.66%
Cia de Saneamento Basico do Estado de Sao	5,700		51
Paulo
Veolia Environnement SA	2,986		64
		$	115
TOTAL COMMON STOCKS		$	6,714
INVESTMENT COMPANIES - 2.08%	Shares Held		Value(000	's)
Money Market Funds - 2.08%
Morgan Stanley Institutional Liquidity Funds -	143,870		144
Government Portfolio

TOTAL INVESTMENT COMPANIES		$	144
Total Investments		$	6,858
Other Assets and Liabilities - 0.84%		$	58
TOTAL NET ASSETS - 100.00%		$	6,916


COMMON STOCKS - 98.46%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.86%					Engineering & Construction (continued)
Interpublic Group of Cos Inc/The	493,350	$	11,416		Promotora y Operadora de Infraestructura	538,265	$	6,454
					SAB de CV
Agriculture - 6.01%					Vinci SA	264,339		20,084
British American Tobacco PLC	468,651		29,076				$	60,541
Imperial Brands PLC	275,785		14,466		Environmental Control - 0.77%
KT&G Corp	137,331		14,398		Waste Management Inc	160,655		10,272
Philip Morris International Inc	218,759		21,860
		$	79,800		Food - 1.73%
Apparel - 0.58%					Koninklijke Ahold Delhaize NV ^(a)	418,627		10,050
Adidas AG	46,005		7,646		Kroger Co/The	403,197		12,898
							$	22,948
Automobile Manufacturers - 0.50%					Food Service - 1.13%
Guangzhou Automobile Group Co Ltd	4,856,000		6,675		Compass Group PLC	790,058		14,954

Automobile Parts & Equipment - 0.82%					Gas - 1.17%
Toyota Industries Corp	226,000		10,842		National Grid PLC	1,130,785		15,562

Banks - 8.55%					Healthcare - Services - 2.56%
Bank of Nova Scotia/The	231,600		12,329		Anthem Inc	102,807		12,859
BNP Paribas SA	270,926		13,836		Centene Corp ^(a)	309,794		21,156
JPMorgan Chase & Co	508,687		34,336				$	34,015
Mitsubishi UFJ Financial Group Inc	2,121,100		11,684		Holding Companies - Diversified - 0.65%
Sumitomo Mitsui Financial Group Inc	275,300		9,631		Wharf Holdings Ltd/The	1,221,000		8,605
Sumitomo Mitsui Trust Holdings Inc	5,491,000		19,703
SunTrust Banks Inc	272,944		12,029		Insurance - 5.75%
		$	113,548		Everest Re Group Ltd	49,701		9,611
Beverages - 0.74%					NN Group NV	411,154		12,276
Diageo PLC	352,938		9,782		Prudential Financial Inc	128,196		10,176
					SCOR SE	438,991		12,953
Biotechnology - 7.76%					Swiss Re AG	113,257		9,571
Amgen Inc	234,575		39,892		Travelers Cos Inc/The	120,884		14,350
Charles River Laboratories International Inc	133,643		11,120		Unum Group	206,970		7,370
(a)							$	76,307
Genmab A/S ^(a)	36,761		5,872		Internet - 5.08%
Gilead Sciences Inc	589,298		46,189		Alphabet Inc - A Shares ^(a)	38,227		30,194
		$	103,073		Auto Trader Group PLC ^(b)	1,166,975		5,717
Chemicals - 0.74%					Facebook Inc ^(a)	107,798		13,595
Lonza Group AG ^(a)	51,530		9,777		Symantec Corp	399,645		9,643
					Tencent Holdings Ltd	322,600		8,360
Commercial Services - 3.23%							$	67,509
AMN Healthcare Services Inc ^(a)	252,310		9,141		Machinery - Construction & Mining - 1.42%
Aramark	340,589		12,918		ABB Ltd ^(a)	431,114		9,352
Qualicorp SA	1,058,100		7,386		Hitachi Ltd	1,964,000		9,441
Total System Services Inc	272,850		13,438				$	18,793
		$	42,883		Machinery - Diversified - 0.88%
Computers - 4.45%					Mitsubishi Heavy Industries Ltd	2,680,000		11,693
Accenture PLC - Class A	216,921		24,946
Capgemini SA	177,887		17,381		Media - 0.88%
Synopsys Inc ^(a)	281,924		16,715		CBS Corp	229,832		11,728
		$	59,042
Cosmetics & Personal Care - 1.14%					Mining - 1.10%
Unilever NV	330,137		15,190		Barrick Gold Corp	429,106		7,299
					Kinross Gold Corp ^(a)	1,832,400		7,322
Distribution & Wholesale - 0.60%							$	14,621
HD Supply Holdings Inc ^(a)	219,278		7,918		Miscellaneous Manufacturers - 1.79%
					Siemens AG	198,798		23,716
Diversified Financial Services - 0.53%
ORIX Corp	486,300		7,008		Oil & Gas - 2.14%
					Antero Resources Corp ^(a)	155,017		3,962
Electric - 3.18%					Exxon Mobil Corp	87,053		7,586
Exelon Corp	343,455		11,678		Lukoil PJSC ADR	170,554		7,643
Iberdrola SA	1,912,589		12,598		Seven Generations Energy Ltd ^(a)	400,400		9,221
Korea Electric Power Corp	218,018		11,324				$	28,412
Tenaga Nasional BHD	1,833,300		6,659		Packaging & Containers - 0.70%
		$	42,259		Packaging Corp of America	118,573		9,323
Electronics - 0.82%
Honeywell International Inc	93,277		10,886		Pharmaceuticals - 6.10%
					AbbVie Inc	342,142		21,931
Engineering & Construction - 4.56%					Pfizer Inc	781,583		27,199
Aena SA ^(b)	56,024		7,919		Shire PLC	280,536		17,520
Eiffage SA	101,853		7,987		VCA Inc ^(a)	202,485		14,338
EMCOR Group Inc	109,085		6,246				$	80,988
Obayashi Corp	1,282,900		11,851


COMMON STOCKS (continued)	Shares Held		Value(000	's)	Portfolio Summary (unaudited)
Pipelines - 0.90%					Country	Percent
TransCanada Corp	263,800	$	11,963		United States	48.23	%
					United Kingdom	8.67	%
Private Equity - 0.78%					Japan	8.46	%
3i Group PLC	1,282,079		10,348		France	7.21	%
					Canada	5.29	%
Real Estate - 1.07%					Korea, Republic Of	2.77	%
Brookfield Asset Management Inc	420,024		14,173		China	2.63	%
					Germany	2.37	%
REITS - 1.69%					Switzerland	2.17	%
Digital Realty Trust Inc	77,819		7,711		Ireland	1.88	%
Extra Space Storage Inc	92,384		7,442		Netherlands	1.68	%
Mid-America Apartment Communities Inc	77,519		7,286		Spain	1.55	%
		$	22,439		Brazil	1.35	%
Retail - 1.51%					Indonesia	0.74	%
Alimentation Couche-Tard Inc	153,716		7,927		Bermuda	0.72	%
CVS Health Corp	129,393		12,086		Hong Kong	0.65	%
		$	20,013		Russian Federation	0.58	%
Semiconductors - 2.09%					Taiwan, Province Of China	0.56	%
Samsung Electronics Co Ltd	7,716		11,192		Malaysia	0.50	%
Taiwan Semiconductor Manufacturing Co Ltd	1,329,000		7,380		Mexico	0.49	%
Tokyo Electron Ltd	100,100		9,216		Denmark	0.44	%
		$	27,788		Other Assets and Liabilities	1.06	%
Shipbuilding - 0.87%					TOTAL NET ASSETS	100.00	%
Huntington Ingalls Industries Inc	69,795		11,528

Software - 2.82%
Microsoft Corp	452,709		26,013
NetEase Inc ADR	54,172		11,483
		$	37,496
Telecommunications - 6.03%
AT&T Inc	166,958		6,825
China Telecom Corp Ltd	16,590,000		8,548
Cisco Systems Inc	1,053,351		33,118
NTT DOCOMO Inc	451,600		11,389
Orange SA	678,914		10,349
Telekomunikasi Indonesia Persero Tbk PT	31,116,400		9,833
		$	80,062
Water - 1.78%
Cia de Saneamento Basico do Estado de Sao	1,152,500		10,432
Paulo
Veolia Environnement SA	620,048		13,213
		$	23,645
TOTAL COMMON STOCKS		$	1,307,187
INVESTMENT COMPANIES - 0.48%	Shares Held		Value(000	's)
Money Market Funds - 0.48%
Morgan Stanley Institutional Liquidity Funds -	6,378,186		6,378
Government Portfolio

TOTAL INVESTMENT COMPANIES		$	6,378
Total Investments		$	1,313,565
Other Assets and Liabilities - 1.06%		$	14,034
TOTAL NET ASSETS - 100.00%		$	1,327,599


Schedule of Investments
International Small Company Fund
August 31, 2016



COMMON STOCKS - 96.93%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Advertising - 0.20%					Diversified Financial Services (continued)
Stroeer SE & Co KGaA	7,381	$	341		Century Tokyo Leasing Corp	28,300	$		1,064
					Euronext NV ^(b)	15,486			654
Apparel - 0.76%					Ichigo Inc	248,700			1,013
Gunze Ltd	141,000		416		Intermediate Capital Group PLC	143,040			1,119
Moncler SpA	53,149		882		Worldpay Group PLC ^(a),(b)	186,033			730
		$	1,298		Zenkoku Hosho Co Ltd	23,900			939
Automobile Manufacturers - 0.83%							$		6,337
New Flyer Industries Inc	43,900		1,414		Electric - 1.03%
					Hera SpA	358,260			993
Automobile Parts & Equipment - 3.95%					Iren SpA	465,011			766
Calsonic Kansei Corp	73,000		575				$		1,759
Georg Fischer AG	1,710		1,376		Electrical Components & Equipment - 1.59%
Plastic Omnium SA	23,980		767		Fujikura Ltd	199,000			1,119
Rheinmetall AG	18,753		1,353		Gamesa Corp Tecnologica SA	69,696			1,600
TS Tech Co Ltd	45,700		1,063				$		2,719
Unipres Corp	50,890		910		Electronics - 2.63%
Xinyi Glass Holdings Ltd ^(a)	822,000		707		Alps Electric Co Ltd	27,700			627
		$	6,751		dorma+kaba Holding AG	1,825			1,433
Banks - 3.29%					Mycronic AB	42,316			502
77 Bank Ltd/The	249,000		1,039		Orbotech Ltd ^(a)	36,895			1,055
Aareal Bank AG	36,375		1,223		Osaki Electric Co Ltd	97,000			889
Israel Discount Bank Ltd ^(a)	536,588		969				$		4,506
Joyo Bank Ltd/The	213,000		847		Engineering & Construction - 3.99%
OneSavings Bank PLC	92,239		324		Aecon Group Inc	28,100			393
Suruga Bank Ltd	51,300		1,222		Eiffage SA	16,852			1,322
		$	5,624		Keller Group PLC	42,655			509
Beverages - 2.10%					Kinden Corp	96,800			1,060
Britvic PLC	86,774		733		Kyudenko Corp	35,300			1,115
Fevertree Drinks PLC	43,495		561		Maeda Corp	107,000			893
Royal Unibrew A/S	23,923		1,180		Toda Corp	167,000			851
Treasury Wine Estates Ltd	132,458		1,115		Yokogawa Bridge Holdings Corp	60,700			673
		$	3,589				$		6,816
Biotechnology - 0.43%					Entertainment - 0.34%
Genmab A/S ^(a)	4,598		734		Evolution Gaming Group AB ^(b)	19,334			582

Building Materials - 1.12%					Food - 2.82%
Buzzi Unicem SpA	57,341		1,220		Bellamy's Australia Ltd	77,413			767
Nichiha Corp	38,000		703		Ebro Foods SA	47,298			1,059
		$	1,923		Ezaki Glico Co Ltd	15,800			792
Chemicals - 3.19%					Greencore Group PLC	143,361			661
Covestro AG ^(b)	15,234		792		Megmilk Snow Brand Co Ltd	25,800			795
Denka Co Ltd	203,000		858		Sonae SGPS SA	892,238			746
DIC Corp	47,600		1,450				$		4,820
Lenzing AG	7,773		921		Forest Products & Paper - 1.08%
Sanyo Chemical Industries Ltd	89,000		751		BillerudKorsnas AB	58,553			998
Tosoh Corp	110,000		679		Smurfit Kappa Group PLC	34,177			844
		$	5,451				$		1,842
Commercial Services - 3.39%					Gas - 0.93%
Kanamoto Co Ltd	41,600		879		Rubis SCA	19,421			1,588
Loomis AB	42,325		1,212
Northgate PLC	92,457		512		Healthcare - Products - 1.57%
QinetiQ Group PLC	326,704		989		Carl Zeiss Meditec AG	15,814			575
Rentokil Initial PLC	554,678		1,558		DiaSorin SpA	11,110			718
Societa Iniziative Autostradali e Servizi SpA	67,062		651		Fisher & Paykel Healthcare Corp Ltd	144,711			1,015
		$	5,801		Ypsomed Holding AG ^(a)	2,011			372
Computers - 2.64%							$		2,680
Bechtle AG	5,003		558		Healthcare - Services - 1.94%
DTS Corp	29,100		599		Eurofins Scientific SE	3,135			1,272
NS Solutions Corp	39,400		683		Orpea	13,929			1,212
Teleperformance	16,913		1,755		UDG Healthcare PLC	104,153			838
Tieto OYJ	30,974		924				$		3,322
		$	4,519		Home Builders - 1.63%
Cosmetics & Personal Care - 1.87%					Bellway PLC	26,423			809
Lion Corp	97,000		1,358		Galliford Try PLC	33,580			501
Oriflame Holding AG ^(a)	27,025		832		Haseko Corp	107,300			1,017
Pola Orbis Holdings Inc	12,700		1,014		Redrow PLC	95,806			467
		$	3,204				$		2,794
Distribution & Wholesale - 0.93%					Home Furnishings - 0.48%
Inchcape PLC	117,932		1,087		Zojirushi Corp	52,300			819
Trusco Nakayama Corp	11,100		510
		$	1,597		Insurance - 2.38%
Diversified Financial Services - 3.71%					Beazley PLC	200,921			1,029
BOC Aviation Ltd ^(a),(b)	157,500		818		Challenger Ltd/Australia	185,348			1,278


Schedule of Investments
International Small Company Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Insurance (continued)					Pharmaceuticals (continued)
Direct Line Insurance Group PLC	100,554	$	488		Recordati SpA	45,006	$		1,362
Hiscox Ltd	82,314		1,129				$		4,794
SCOR SE	4,836		143		Private Equity - 1.89%
		$	4,067		3i Group PLC	178,923			1,444
Internet - 1.77%					Alaris Royalty Corp	28,191			494
ASOS PLC ^(a)	11,821		703		AURELIUS Equity Opportunities SE & Co	14,402			812
Just Eat PLC ^(a)	152,647		1,085		KGaA
Rightmove PLC	22,865		1,231		SVG Capital PLC ^(a)	65,126			477
		$	3,019				$		3,227
Iron & Steel - 0.58%					Real Estate - 5.56%
BlueScope Steel Ltd	152,033		991		BUWOG AG ^(a)	40,632			1,057
					Castellum AB	104,498			1,580
Leisure Products & Services - 0.38%					Conwert Immobilien Invest SE ^(a)	47,712			838
Daiichikosho Co Ltd	16,900		655		Grand City Properties SA	52,084			1,142
					Hemfosa Fastigheter AB	107,926			1,194
Lodging - 0.89%					Sponda OYJ	103,076			538
Star Entertainment Grp Ltd/The	343,832		1,522		Starts Corp Inc	18,000			309
					TLG Immobilien AG	31,527			713
Machinery - Diversified - 2.04%					UNITE Group PLC/The	100,912			831
Daihen Corp	8,000		42		UOL Group Ltd	219,700			895
Ebara Corp	202,000		1,040		Wheelock & Co Ltd	72,000			411
KION Group AG	25,912		1,475				$		9,508
Tsubakimoto Chain Co	123,000		930		REITS - 4.69%
		$	3,487		Allied Properties Real Estate Investment Trust	23,959			673
Media - 1.48%					Axiare Patrimonio SOCIMI SA	30,210			389
Corus Entertainment Inc	107,200		1,005		Hibernia REIT plc	453,833			708
Informa PLC	143,589		1,336		Hulic Reit Inc	440			776
Sanoma OYJ	20,083		185		Japan Hotel REIT Investment Corp	1,175			1,011
		$	2,526		Mapletree Commercial Trust	559,058			640
Mining - 3.63%					MCUBS MidCity Investment Corp	204			687
Detour Gold Corp ^(a)	46,890		1,058		Milestone Apartments Real Estate Investment	43,800			658
HudBay Minerals Inc	158,066		641		Trust
Independence Group NL	216,311		597		Orix JREIT Inc	747			1,307
Kirkland Lake Gold Inc ^(a)	70,200		572		Pure Industrial Real Estate Trust	91,200			382
Lundin Mining Corp ^(a)	223,864		847		Smart Real Estate Investment Trust	28,954			782
Northern Star Resources Ltd	200,509		614				$		8,013
OceanaGold Corp	246,773		777		Retail - 5.73%
Sandfire Resources NL	108,154		445		Dollarama Inc	10,860			802
St Barbara Ltd ^(a)	302,668		648		Domino's Pizza Group PLC	184,508			870
		$	6,199		Izumi Co Ltd	12,900			507
Miscellaneous Manufacturers - 0.90%					JD Sports Fashion PLC	41,954			711
Aalberts Industries NV	36,458		1,225		K's Holdings Corp	58,000			916
Hill & Smith Holdings PLC	20,201		310		Man Wah Holdings Ltd	1,113,600			756
		$	1,535		Matsumotokiyoshi Holdings Co Ltd	12,900			569
Office Furnishings - 0.11%					Shimamura Co Ltd	5,700			660
Okamura Corp	20,900		192		Toridoll.corp	19,700			414
					Tsuruha Holdings Inc	7,100			696
Oil & Gas - 4.21%					Valor Holdings Co Ltd	44,400			1,199
Birchcliff Energy Ltd ^(a)	72,886		505		Valora Holding AG	3,223			878
Cardinal Energy Ltd	54,710		358		Yamada Denki Co Ltd	174,100			814
DCC PLC	13,984		1,273				$		9,792
Det Norske Oljeselskap ASA ^(a)	47,873		650		Semiconductors - 1.60%
Ensign Energy Services Inc	55,100		324		BE Semiconductor Industries NV	42,759			1,343
Parex Resources Inc ^(a)	79,767		944		Tower Semiconductor Ltd ^(a)	34,843			546
Raging River Exploration Inc ^(a)	114,689		930		Ulvac Inc	29,900			843
Seven Generations Energy Ltd ^(a)	39,000		898				$		2,732
Spartan Energy Corp ^(a)	157,158		404		Software - 2.23%
Whitecap Resources Inc	119,319		905		Kinaxis Inc ^(a)	23,100			1,095
		$	7,191		NetEnt AB ^(a)	68,796			569
Oil & Gas Services - 0.48%					Nexon Co Ltd	41,900			575
Technip SA	13,926		825		Open Text Corp	14,200			893
					TIS Inc	29,000			688
Packaging & Containers - 1.73%							$		3,820
CCL Industries Inc	3,182		607		Telecommunications - 1.55%
Orora Ltd	449,684		1,046		ADVA Optical Networking SE ^(a)	71,501			610
RPC Group PLC	114,855		1,311		Hitachi Kokusai Electric Inc	44,200			785
		$	2,964		Spark New Zealand Ltd	455,370			1,256
Pharmaceuticals - 2.80%							$		2,651
Amplifon SpA	135,009		1,420		Transportation - 1.86%
Indivior PLC	56,589		234		National Express Group PLC	229,550			1,066
Kaken Pharmaceutical Co Ltd	18,000		1,017		Sankyu Inc	221,000			1,260
Nippon Shinyaku Co Ltd	16,400		761

Schedule of Investments Multi-Manager Equity Long/Short Fund August 31, 2016


COMMON STOCKS - 88.31%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Advertising - 0.90%					Banks (continued)
JCDecaux SA	71,789	$	2,473		Nordea Bank AB	122,968	$		1,201
Omnicom Group Inc ^(a)	5,171		446		Northern Trust Corp	484			34
		$	2,919		PNC Financial Services Group Inc/The	1,049			95
Aerospace & Defense - 1.48%					Regions Financial Corp	39,115			390
					Signature Bank/New York NY ^(b)	2,156			263
Airbus Group SE	3,315		194
Boeing Co/The	6,390		827		State Street Corp	833			59
General Dynamics Corp	1,265		193		SunTrust Banks Inc	2,586			114
Harris Corp ^(a)	2,714		252		US Bancorp	3,675			162
L-3 Communications Holdings Inc ^(a)	1,683		251		Wells Fargo & Co	19,069			968
Leonardo-Finmeccanica SpA ^(b)	60,000		685		Western Alliance Bancorp ^(a),(b)	40,983			1,566
Lockheed Martin Corp ^(a)	9,125		2,217		Zions Bancorporation ^(a)	4,484			137
Northrop Grumman Corp	382		81				$		22,226
United Technologies Corp	1,196		127		Beverages - 3.07%
		$	4,827		Anheuser-Busch InBev SA/NV	3,000			372
Agriculture - 1.69%					Brown-Forman Corp - B Shares	846			41
					Coca-Cola Co/The ^(a)	7,931			345
Altria Group Inc	13,634		901
					Constellation Brands Inc ^(a)	35,860			5,883
British American Tobacco PLC	48,774		3,026
Philip Morris International Inc ^(a)	781		78		Dr Pepper Snapple Group Inc ^(a)	2,714			254
					Molson Coors Brewing Co ^(a)	27,378			2,801
Reynolds American Inc	13,426		666
Swedish Match AB	24,108		858		PepsiCo Inc	3,081			329
		$	5,529				$		10,025
Airlines - 0.52%					Biotechnology - 2.94%
Alaska Air Group Inc ^(a)	2,691		182		Alnylam Pharmaceuticals Inc ^(b)	5,869			410
American Airlines Group Inc	1,143		41		Amgen Inc	7,029			1,195
Delta Air Lines Inc ^(a)	16,374		602		Biogen Inc ^(a),(b)	6,570			2,008
Southwest Airlines Co ^(a)	13,561		500		Celgene Corp ^(b)	5,218			557
United Continental Holdings Inc ^(a),(b)	7,061		356		Gilead Sciences Inc ^(a)	48,133			3,773
					Incyte Corp ^(b)	4,429			359
		$	1,681
					Intrexon Corp ^(b)	35,000			884
Apparel - 0.53%					Vertex Pharmaceuticals Inc ^(b)	4,119			389
Adidas AG	500		83
Michael Kors Holdings Ltd ^(a),(b)	3,928		192				$		9,575
Moncler SpA	65,000		1,079		Building Materials - 0.60%
NIKE Inc	3,597		207		HeidelbergCement AG	6,814			632
Ralph Lauren Corp ^(a)	1,816		188		LafargeHolcim Ltd ^(b)	24,233			1,287
		$	1,749		Masco Corp	658			23
Automobile Manufacturers - 1.38%							$		1,942
Bayerische Motoren Werke AG	15,893		1,381		Chemicals - 2.33%
Daimler AG	12,491		865		Air Products & Chemicals Inc	760			118
Ferrari NV	11,807		569		Akzo Nobel NV	7,273			490
					Albemarle Corp ^(a)	16,122			1,290
Ford Motor Co	8,489		107
General Motors Co ^(a)	34,982		1,117		Eastman Chemical Co ^(a)	3,232			220
PACCAR Inc ^(a)	7,663		458		FMC Corp ^(a)	2,927			137
		$	4,497		International Flavors & Fragrances Inc	161			22
Automobile Parts & Equipment - 0.43%					Koninklijke DSM NV	8,333			582
BorgWarner Inc ^(a)	4,684		161		LANXESS AG	5,500			293
Delphi Automotive PLC ^(a)	5,963		421		LyondellBasell Industries NV ^(a)	9,182			724
					Mosaic Co/The ^(a)	7,650			230
Johnson Controls Inc	1,385		61
Rheinmetall AG	10,615		766		PPG Industries Inc	5,790			613
		$	1,409		Praxair Inc	601			73
					Sherwin-Williams Co/The ^(a)	9,843			2,793
Banks - 6.82%
ABN AMRO Group NV ^(c)	56,616		1,164				$		7,585
Alinma Bank - Warrants ^(b),(d),(e)	568,166		1,887		Commercial Services - 1.19%
					Automatic Data Processing Inc ^(a)	9,964			895
Banco Popolare SC	185,000		462
Bank of America Corp ^(a)	262,502		4,237		Cintas Corp	1,479			174
Bank of New York Mellon Corp/The	2,283		95		Ecolab Inc	643			79
Bank of the Ozarks Inc ^(a)	37,923		1,486		H&R Block Inc	468			10
					Moody's Corp ^(a)	4,204			457
BB&T Corp	1,741		67		Robert Half International Inc ^(a)	2,855			110
Capital One Financial Corp	1,390		100		S&P Global Inc ^(a)	5,782			714
Citigroup Inc	6,213		297
Citizens Financial Group Inc	1,131		28		Securitas AB	53,605			931
					United Rentals Inc ^(a),(b)	1,897			156
Comerica Inc	1,376		65		Verisk Analytics Inc ^(b)	1,263			105
Danske Bank A/S	74,815		2,196		Western Union Co/The ^(a)	10,670			230
Erste Group Bank AG	26,802		753
Fifth Third Bancorp	22,432		452				$		3,861
Goldman Sachs Group Inc/The	904		153		Computers - 3.43%
Huntington Bancshares Inc/OH	1,709		17		Accenture PLC - Class A	9,086			1,045
					Apple Inc ^(a)	26,329			2,793
ING Groep NV	114,350		1,431
					Cognizant Technology Solutions Corp ^(b)	1,298			75
Intesa Sanpaolo SpA	225,000		535
					CSRA Inc ^(a)	28,242			717
JPMorgan Chase & Co	7,724		521
KBC Group NV	11,367		674		EMC Corp	3,882			112
					Hewlett Packard Enterprise Co ^(a)	37,692			810
KeyCorp	34,814		438
					HP Inc ^(a)	37,409			538
M&T Bank Corp	404		48
Morgan Stanley	4,100		131		International Business Machines Corp	2,116			336

Schedule of Investments Multi-Manager Equity Long/Short Fund August 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Computers (continued)					Environmental Control - 0.01%
NetApp Inc ^(a)	81,392	$	2,815		Republic Services Inc	732	$		37
Teradata Corp ^(a),(b)	2,832		90
Western Digital Corp ^(a)	39,386		1,838		Food - 1.90%
		$	11,169		Campbell Soup Co ^(a)	6,756			410
Consumer Products - 0.31%					ConAgra Foods Inc ^(a)	9,578			446
Avery Dennison Corp ^(a)	1,983		154		Hormel Foods Corp	1,132			43
Church & Dwight Co Inc	275		27		JM Smucker Co/The	3,375			479
Clorox Co/The	2,377		312		Koninklijke Ahold Delhaize NV ^(b)	33,250			798
Kimberly-Clark Corp ^(a)	4,132		529		Kraft Heinz Co/The	2,603			233
		$	1,022		Mondelez International Inc ^(a)	2,236			101
Cosmetics & Personal Care - 0.40%					Nestle SA	30,009			2,392
Estee Lauder Cos Inc/The	1,271		113		Suedzucker AG	22,000			574
					Sysco Corp ^(a)	12,320			639
Procter & Gamble Co/The	5,705		498
Svenska Cellulosa AB SCA	22,512		692		Tyson Foods Inc	786			59
		$	1,303		Whole Foods Market Inc	681			21
Distribution & Wholesale - 0.07%							$		6,195
WW Grainger Inc	1,030		238		Gas - 1.22%
					CenterPoint Energy Inc	2,726			61
					Sempra Energy ^(a)	37,328			3,906
Diversified Financial Services - 4.05%
Affiliated Managers Group Inc ^(a),(b)	25,556		3,630				$		3,967
Ameriprise Financial Inc	346		35		Hand & Machine Tools - 0.47%
Anima Holding SpA ^(c)	130,000		630		Sandvik AB	123,911			1,344
BlackRock Inc ^(a)	3,542		1,320		Snap-on Inc ^(a)	1,270			195
Charles Schwab Corp/The	14,316		450				$		1,539
CME Group Inc ^(a)	7,376		799		Healthcare - Products - 0.69%
Discover Financial Services	869		52		Becton Dickinson and Co ^(a)	8,589			1,522
E*TRADE Financial Corp ^(b)	1,177		31		Danaher Corp ^(a)	6,757			550
Franklin Resources Inc ^(a)	12,611		460		Patterson Cos Inc ^(a)	2,167			100
Hoist Finance AB ^(c)	17,591		164		Zimmer Biomet Holdings Inc	427			55
Intercontinental Exchange Inc ^(a)	4,902		1,382				$		2,227
Invesco Ltd ^(a)	9,159		286		Healthcare - Services - 2.92%
Legg Mason Inc ^(a)	2,265		78		Acadia Healthcare Co Inc ^(b)	14,552			745
MasterCard Inc	5,380		520		Aetna Inc ^(a)	7,668			898
Nasdaq Inc ^(a)	3,618		258		Anthem Inc ^(a)	5,754			720
Navient Corp	677		10		Centene Corp ^(a),(b)	3,732			255
OM Asset Management PLC	50,229		678		Cigna Corp ^(a)	5,610			719
Synchrony Financial	1,783		50		Fresenius SE & Co KGaA	7,004			510
T Rowe Price Group Inc ^(a)	5,434		378		HCA Holdings Inc ^(a),(b)	21,354			1,613
Visa Inc ^(a)	24,615		1,992		Humana Inc ^(a)	3,260			583
		$	13,203		Laboratory Corp of America Holdings ^(b)	640			88
Electric - 0.56%					Quest Diagnostics Inc ^(a)	3,040			252
AES Corp/VA	1,410		17		UnitedHealth Group Inc ^(a)	11,351			1,544
American Electric Power Co Inc	1,051		68		Universal Health Services Inc ^(a)	13,150			1,585
CMS Energy Corp ^(a)	6,089		256				$		9,512
Consolidated Edison Inc ^(a)	3,497		263		Home Builders - 0.05%
DTE Energy Co ^(a)	3,913		364		DR Horton Inc ^(a)	4,794			154
Duke Energy Corp	1,465		117		Lennar Corp - A Shares	468			22
FirstEnergy Corp	6,023		197				$		176
NRG Energy Inc ^(a)	6,887		83
					Home Furnishings - 0.17%
PPL Corp	1,440		50		Harman International Industries Inc ^(a)	1,556			132
WEC Energy Group Inc ^(a)	6,900		413		Leggett & Platt Inc	2,330			122
		$	1,828		Whirlpool Corp ^(a)	1,640			293
Electrical Components & Equipment - 0.54%							$		547
AMETEK Inc ^(a)	5,081		248
					Insurance - 1.14%
Emerson Electric Co ^(a)	14,067		741		Aflac Inc	872			65
Prysmian SpA	30,006		741		American International Group Inc	639			38
		$	1,730		Arthur J Gallagher & Co	378			19
Electronics - 2.23%					Berkshire Hathaway Inc - Class B ^(b)	5,252			790
Agilent Technologies Inc ^(a)	6,792		319		Chubb Ltd	994			126
Flextronics International Ltd ^(b)	63,714		843		Cincinnati Financial Corp	347			27
FLIR Systems Inc	961		30		Hartford Financial Services Group Inc/The	825			34
Fortive Corp ^(a)	384		20		Lincoln National Corp	497			24
Garmin Ltd ^(a)	4,129		203		MetLife Inc	2,337			101
Koninklijke Philips NV	51,662		1,498		NN Group NV	23,000			687
TE Connectivity Ltd ^(a)	7,793		495		Progressive Corp/The	1,238			40
Tyco International Plc	87,681		3,830		Prudential Financial Inc	1,282			102
Waters Corp ^(b)	172		27		Sampo Oyj	12,367			532
		$	7,265		Torchmark Corp	256			17
Engineering & Construction - 0.04%					Unum Group	502			18
Jacobs Engineering Group Inc ^(a),(b)	2,661		140		Zurich Insurance Group AG ^(b)	4,247			1,087
							$		3,707
					Internet - 4.93%
					Alibaba Group Holding Ltd ADR^(b)	24,222			2,354


Schedule of Investments
Multi-Manager Equity Long/Short Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held	Value (000's)		COMMON STOCKS (continued)	Shares Held		Value (000		's)
Internet (continued)				Miscellaneous Manufacturers (continued)
Alphabet Inc - A Shares ^(b)	610	$	482	Siemens AG	11,949	$		1,425
Amazon.com Inc ^(a),(b)	4,695		3,611			$		2,293
eBay Inc ^(a),(b)	24,750		796	Office & Business Equipment - 0.02%
F5 Networks Inc ^(a),(b)	1,447		177	Pitney Bowes Inc ^(a)	4,127			77
Facebook Inc ^(a),(b)	9,671		1,220
Symantec Corp	1,316		32	Oil & Gas - 1.49%
Tencent Holdings Ltd	83,099		2,153	Africa Oil Corp ^(b)	535,000			821
United Internet AG	11,027		453	Anadarko Petroleum Corp	919			49
VeriSign Inc ^(a),(b)	3,138		234	Chesapeake Energy Corp ^(b)	1,271			8
Yahoo! Inc ^(a),(b)	64,808		2,771	Concho Resources Inc ^(a),(b)	15,376			1,987
Yoox Net-A-Porter Group SpA ^(b)	57,170		1,792	Diamond Offshore Drilling Inc ^(a)	2,571			48
		$	16,075	Helmerich & Payne Inc	1,525			92
Iron & Steel - 0.74%				Marathon Oil Corp ^(a)	18,523			278
APERAM SA	13,103		542	Marathon Petroleum Corp ^(a)	11,543			491
ArcelorMittal ^(b)	90,000		534	Murphy Oil Corp ^(a)	3,765			101
Nucor Corp ^(a)	6,983		339	Noble Energy Inc ^(a)	9,466			326
Outokumpu OYJ ^(b)	70,000		383	Transocean Ltd ^(a),(b)	7,988			77
SSAB AB ^(b)	208,898		621	Valero Energy Corp ^(a)	10,221			566
		$	2,419			$		4,844
Leisure Products & Services - 0.06%				Oil & Gas Services - 0.53%
Harley-Davidson Inc ^(a)	3,948		208	Baker Hughes Inc ^(a)	7,487			368
				FMC Technologies Inc ^(b)	4,904			138
Lodging - 0.26%				Halliburton Co	1,839			79
Marriott International Inc/MD ^(a)	5,559		397	National Oilwell Varco Inc ^(a)	8,245			276
Starwood Hotels & Resorts Worldwide Inc ^(a)	3,707		287	Schlumberger Ltd ^(a)	10,861			858
Wyndham Worldwide Corp ^(a)	2,446		173			$		1,719
		$	857	Packaging & Containers - 0.08%
Machinery - Construction & Mining - 0.66%				WestRock Co ^(a)	5,510			264
ABB Ltd ^(b)	55,760		1,209
Atlas Copco AB - A Shares	33,267		943	Pharmaceuticals - 5.76%
		$	2,152	AbbVie Inc	16,832			1,079
Machinery - Diversified - 0.69%				Actelion Ltd ^(b)	3,793			632
Cummins Inc ^(a)	3,674		461	Allergan plc ^(a),(b)	29,368			6,888
Deere & Co	672		57	AmerisourceBergen Corp ^(a)	4,667			406
Kone OYJ	14,150		711	Bristol-Myers Squibb Co	41,362			2,374
Metso OYJ	24,609		689	Cardinal Health Inc ^(a)	7,065			563
Rockwell Automation Inc ^(a)	2,830		328	Express Scripts Holding Co ^(a),(b)	14,061			1,022
		$	2,246	Johnson & Johnson	6,244			745
				Mallinckrodt PLC ^(b)	1,853			138
Media - 5.67%
Altice NV - A Shares ^(b)	54,106		904	McKesson Corp	4,514			833
CBS Corp ^(a)	9,752		498	Merck KGaA	5,031			529
Charter Communications Inc ^(a),(b)	10,207		2,625	Pfizer Inc ^(a)	102,884			3,581
Comcast Corp - Class A	11,523		752			$		18,790
Discovery Communications Inc - A Shares	48,874		1,247	Pipelines - 0.11%
(a),(b)				Kinder Morgan Inc/DE	4,767			104
DISH Network Corp ^(a),(b)	37,555		1,887	ONEOK Inc	4,569			215
Liberty Global PLC - C Shares ^(b)	77,459		2,388	Williams Cos Inc/The	1,690			47
News Corp - A Shares ^(a)	12,683		178			$		366
Schibsted ASA - A Shares	25,286		801	Real Estate - 0.14%
Scripps Networks Interactive Inc ^(a)	2,821		179	CBRE Group Inc ^(b)	718			21
TEGNA Inc ^(a)	4,734		96	Patrizia Immobilien AG ^(b)	18,245			435
Time Warner Inc ^(a)	48,826		3,828			$		456
Twenty-First Century Fox Inc - A Shares ^(a)	40,885		1,003	REITS - 0.63%
Viacom Inc - B Shares	8,627		348	AvalonBay Communities Inc	292			51
Walt Disney Co/The ^(a)	18,403		1,738	Crown Castle International Corp	8,236			781
		$	18,472	Digital Realty Trust Inc	313			31
Metal Fabrication & Hardware - 0.33%				Essex Property Trust Inc ^(a)	140			32
Assa Abloy AB	32,271		653	Extra Space Storage Inc	267			22
Tenaris SA	32,478		447	Federal Realty Investment Trust	106			17
		$	1,100	General Growth Properties Inc ^(a)	926			27
Mining - 1.54%				HCP Inc	993			39
AngloGold Ashanti Ltd ADR^(a),(b)	47,060		757	Host Hotels & Resorts Inc	1,584			28
Freeport-McMoRan Inc ^(a)	64,597		664	Kimco Realty Corp	898			27
Newmont Mining Corp ^(a)	31,579		1,208	National Retail Properties Inc ^(a)	16,814			842
Norsk Hydro ASA	119,870		509	Prologis Inc	1,125			60
Silver Wheaton Corp	73,903		1,872	SL Green Realty Corp	214			25
		$	5,010	Welltower Inc	761			58
Miscellaneous Manufacturers - 0.70%						$		2,040
3M Co	1,286		231	Retail - 5.45%
Dover Corp	331		24	AutoNation Inc ^(a),(b)	2,232			106
Illinois Tool Works Inc	1,922		228	AutoZone Inc ^(b)	243			180
Parker-Hannifin Corp ^(a)	2,939		360	Bed Bath & Beyond Inc ^(a)	3,378			157
Pentair PLC	387		25	Best Buy Co Inc ^(a)	7,084			272


Schedule of Investments
Multi-Manager Equity Long/Short Fund
August 31, 2016



COMMON STOCKS (continued)	Shares Held	Value (000's)		COMMON STOCKS (continued)		Shares Held	Value (000's)
Retail (continued)				Telecommunications (continued)
CarMax Inc ^(b)	3,378	$	199	Deutsche Telekom AG		52,228	$	871
Coach Inc	1,772		68	Juniper Networks Inc ^(a)		8,370		193
CVS Health Corp	17,868		1,669	Level 3 Communications Inc ^(b)		474		24
Darden Restaurants Inc ^(a)	2,738		169	Nokia OYJ		135,000		761
Dollar General Corp ^(a)	6,224		457	Sunrise Communications Group AG ^(b),(c)		13,412		913
Dollar Tree Inc ^(a),(b)	14,361		1,187	Swisscom AG		912		436
Foot Locker Inc ^(a)	2,974		195	Telecom Italia SpA/Milano ^(b)		1,300,000		1,180
Gap Inc/The ^(a)	8,702		216	Verizon Communications Inc		38,639		2,022
Genuine Parts Co ^(a)	3,255		335				$	12,657
Home Depot Inc/The ^(a)	14,356		1,925	Transportation - 2.16%
HUGO BOSS AG	8,351		509	Avance Gas Holding Ltd ^(c)		150,000		301
Kohl's Corp ^(a)	4,025		179	CH Robinson Worldwide Inc		305		21
Lowe's Cos Inc ^(a)	19,209		1,471	CSX Corp		9,571		271
Macy's Inc ^(a)	6,765		245	Expeditors International of Washington Inc ^(a)		3,954		200
McDonald's Corp ^(a)	17,947		2,076	FedEx Corp ^(a)		15,757		2,599
O'Reilly Automotive Inc ^(b)	202		56	Hoegh LNG Holdings Ltd		70,820		733
PVH Corp ^(a)	1,771		191	JB Hunt Transport Services Inc ^(a)		2,463		196
Ross Stores Inc ^(a)	8,735		544	Kuehne + Nagel International AG		6,246		873
Signet Jewelers Ltd ^(a)	1,715		141	Norfolk Southern Corp		1,069		100
Staples Inc	1,390		12	Union Pacific Corp		3,573		341
Target Corp ^(a)	12,975		911	United Parcel Service Inc ^(a)		13,010		1,421
Tiffany & Co	266		19				$	7,056
TJX Cos Inc/The	2,882		223	Water - 0.01%
Tractor Supply Co ^(a)	285		24	American Water Works Co Inc		484		36
Urban Outfitters Inc ^(a),(b)	2,561		92
Walgreens Boots Alliance Inc ^(a)	21,943		1,771
				TOTAL COMMON STOCKS			$	287,896
Wal-Mart Stores Inc ^(a)	21,243		1,518
Yum! Brands Inc ^(a)	3,632		329	INVESTMENT COMPANIES - 15.02%		Shares Held	Value (000's)
Zalando SE ^(b),(c)	8,620		329	Money Market Funds - 15.02%
				Wells Fargo Advantage Government Money		48,973,677		48,975
		$	17,775	Market Fund ^(f)
Savings & Loans - 0.00%
People's United Financial Inc	649		11	TOTAL INVESTMENT COMPANIES			$	48,975
				TOTAL PURCHASED OPTIONS - 0.06%			$	197
Semiconductors - 4.01%
				Total Investments			$	337,068
ams AG	20,000		678
Analog Devices Inc ^(a)	5,590		350	Other Assets and Liabilities - (3.38)%			$	(11,006	)
				TOTAL NET ASSETS - 100.00%			$	326,062
Applied Materials Inc	23,613		705
ASML Holding NV - NY Reg Shares	14,580		1,553
Dialog Semiconductor PLC ^(b)	35,497		1,244
				(a)	Security or a portion of the security was pledged as collateral for short
Infineon Technologies AG	84,924		1,425		sales. At the end of the period, the value of these securities totaled $88,515
Intel Corp	10,053		361		or 27.15% of net assets.
KLA-Tencor Corp ^(a)	3,410		236
Lam Research Corp ^(a)	3,950		369	(b)	Non-Income Producing Security
				(c)	Security exempt from registration under Rule 144A of the Securities Act of
Linear Technology Corp	1,934		113		1933. These securities may be resold in transactions exempt from
Marvell Technology Group Ltd	170,025		2,108		registration, normally to qualified institutional buyers. At the end of the
QUALCOMM Inc ^(a)	28,753		1,813		period, the value of these securities totaled $4,481 or 1.37% of net assets.

STMicroelectronics NV	183,011		1,372	(d)	Security is Illiquid. At the end of the period, the value of these securities
Synaptics Inc ^(b)	7,583		432		totaled $1,887 or 0.58% of net assets.
Xilinx Inc ^(a)	5,542		300
				(e)	Fair value of these investments is determined in good faith by the Manager
		$	13,059		under procedures established and periodically reviewed by the Board of
Software - 4.38%					Directors. At the end of the period, the fair value of these securities totaled
Akamai Technologies Inc ^(a),(b)	3,828		210		$1,887 or 0.58% of net assets.

CA Inc ^(a)	9,055		307
				(f)	Security or a portion of the security was pledged to cover margin
Citrix Systems Inc ^(b)	1,961		171		requirements for swap and/or swaption contracts. At the end of the period,
					the value of these securities totaled $10,313 or 3.16% of net assets.
CommVault Systems Inc ^(b)	5,472		282

Electronic Arts Inc ^(a),(b)	6,581		535
Fidelity National Information Services Inc ^(a)	2,399		190
Fiserv Inc ^(b)	471		48		Portfolio Summary (unaudited)
Intuit Inc ^(a)	5,931		661	Sector				Percent
Microsoft Corp ^(a)	46,133		2,651	Consumer, Non-cyclical				20.87	%
Oracle Corp ^(a)	90,039		3,712	Communications				15.37	%
PTC Inc ^(a),(b)	35,256		1,504	Investment Companies				15.02	%
Radware Ltd ^(b)	34,320		465	Financial				12.78	%
SAP SE	15,624		1,372	Technology				11.84	%
Verint Systems Inc ^(a),(b)	25,957		886	Industrial				9.99	%
VMware Inc ^(a),(b)	17,591		1,290	Consumer, Cyclical				8.92	%
		$	14,284	Basic Materials				4.61	%
Telecommunications - 3.88%				Energy				2.13	%
AT&T Inc ^(a)	43,090		1,762	Utilities				1.79	%
Cellnex Telecom SA ^(c)	56,157		980	Purchased Options				0.06	%
CenturyLink Inc ^(a)	11,936		332	Investments Sold Short				(37.06	)%
China Mobile Ltd	97,216		1,198	Other Assets and Liabilities				33.68	%
Cisco Systems Inc ^(a)	63,126		1,985	TOTAL NET ASSETS				100.00	%


Schedule of Investments
Multi-Manager Equity Long/Short Fund
August 31, 2016



Foreign Currency Contracts

											Unrealized Appreciation/(Depreciation)
Counterparty		Delivery Date		Contracts to Accept			In Exchange For		Fair Value				Asset		Liability
Goldman Sachs & Co		09/06/2016		DKK	2,900,000	$		433	$	435	$		2		$		—
Goldman Sachs & Co		09/06/2016		NOK	4,300,000			506		516			10				—
Goldman Sachs & Co		09/06/2016		SEK	2,500,000			297		292			—				(5	)
Morgan Stanley & Co		09/21/2016		DKK	5,986,000			898		898			—				—
Morgan Stanley & Co		09/21/2016		GBP	256,000			337		336			—				(1	)
Morgan Stanley & Co		09/21/2016		NOK	1,536,000			186		184			—				(2	)
Morgan Stanley & Co		09/21/2016		SEK	10,886,000			1,303	1,273				—				(30	)
Morgan Stanley & Co		11/17/2016		EUR	289,000			322		324			3				(1	)
Total											$		15		$		(39	)
											Unrealized Appreciation/(Depreciation)
Counterparty		Delivery Date		Contracts to Deliver			In Exchange For		Fair Value				Asset		Liability
Goldman Sachs & Co		09/06/2016		CHF	700,000	$		726	$	712	$		14		$		—
Goldman Sachs & Co		09/06/2016		DKK	7,187,392			1,083	1,078				5				—
Goldman Sachs & Co		09/06/2016		EUR	9,817,965			10,939	10,953				17				(31	)
Goldman Sachs & Co		09/06/2016		NOK	18,418,160			2,201	2,210				2				(11	)
Goldman Sachs & Co		09/06/2016		SEK	12,922,569			1,553	1,510				43				—
Morgan Stanley & Co		09/21/2016		CHF	5,389,000			5,536	5,487				49				—
Morgan Stanley & Co		09/21/2016		DKK	15,459,000			2,313	2,319				—				(6	)
Morgan Stanley & Co		09/21/2016		EUR	21,412,000			23,942	23,903				80				(41	)
Morgan Stanley & Co		09/21/2016		GBP	256,000			330		336			—				(6	)
Morgan Stanley & Co		09/21/2016		NOK	12,500,000			1,487	1,501				—				(14	)
Morgan Stanley & Co		09/21/2016		SEK	71,305,000			8,372	8,339				33				—
Morgan Stanley & Co		11/17/2016		CHF	938,000			956		958			1				(3	)
Morgan Stanley & Co		11/17/2016		EUR	3,612,000			4,020	4,042				2				(24	)
Total											$		246		$		(136	)

Amounts in thousands except contracts


Futures Contracts

															Unrealized
Type			Long/Short		Contracts		Notional Value						Fair Value		Appreciation/(Depreciation)
AEX Index; September 2016				Short	23	$		2,330	$				2,331	$			(1	)
CAC40 Index; September 2016				Short	125			6,220					6,188				32
DAX Index; September 2016				Short	6			1,762					1,775				(13	)
DJ Euro Stoxx 50; September 2016				Short	412			13,054					13,925				(871	)
DJ Euro Stoxx 50; September 2016				Short	30			1,001					1,014				(13	)
FTSE/MIB Index; September 2016				Short	30			2,817					2,834				(17	)
FTSE100 Index; September 2016				Short	60			5,292					5,347				(55	)
OMXS30 Index; September 2016				Short	166			2,737					2,749				(12	)
Total													$				(950	)

Amounts in thousands except contracts


Options

								Upfront Premiums							Unrealized
Purchased Options Outstanding		Exercise Price			Expiration Date		Contracts	Paid/(Received)			Fair Value				Appreciation/(Depreciation)
Put - EURO STOXX 50 Price EUR		EUR	2,900.00		09/19/2016		300	$	65	$			37	$			(28	)
Put - Powershares QQQ Trust Series 1		$	111.00		10/24/2016		897		161				97				(64	)
Put - SPDR S&P500 ETF Trust		$	211.00		10/24/2016		289		100				63				(37	)
Total								$	326	$			197	$			(129	)


Amounts in thousands except contracts


Total Return Equity Basket Swaps

													Notional		Fair Value
Counterparty	Fund Pays				Fund Receives				Expiration Date				Value		Asset		Liability
Goldman Sachs	Floating rate based on 1 month GBP				Total return on a custom basket of long and				04/18/2017 -			$	3,515	$	218	$	—
	LIBOR plus/less spread				short securities traded in GBP				09/01/2017
Goldman Sachs	Floating rate based on 1 month PRIBOR				Total return on a custom basket of long and				05/24/2017				—		—		(6	)
	plus/less spread				short securities traded in CZK
Goldman Sachs	Floating rate based on 1 month Euribor				Total return on a custom basket of long and				04/18/2017 -				5,892		7		—
	plus/less spread				short securities traded in EUR				08/31/2017


Schedule of Investments
Multi-Manager Equity Long/Short Fund
August 31, 2016


Short Sales Outstanding



COMMON STOCKS - (29.02)%	Shares			Value(000	's)	COMMON STOCKS (continued)	Shares			Value(000	's)

Advertising - (0.05)%						Commercial Services (continued)
Interpublic Group of Cos Inc/The	7,038		$	163		Total System Services Inc	3,229		$	159
								$		1,321

Aerospace & Defense - (0.78)%						Computers - (0.09)%
Boeing Co/The	7,535			975		Seagate Technology PLC	1,998			67
MTU Aero Engines AG	5,500			559		Western Digital Corp	4,970			232
Raytheon Co	5,181			726				$		299
Rockwell Collins Inc	2,276			191
TransDigm Group Inc ^(a)		296		84		Cosmetics & Personal Care - (0.03)%
						Colgate-Palmolive Co	1,301			97
		$		2,535


Agriculture - (0.14)%						Distribution & Wholesale - (0.61)%
Archer-Daniels-Midland Co	10,239			448
						Fastenal Co	22,798			983
						LKQ Corp ^(a)	5,387			194
Apparel - (0.50)%						WW Grainger Inc	3,462			799
Hanesbrands Inc	6,634			176				$		1,976
NIKE Inc	12,000			692
Under Armour Inc - Class A ^(a)	7,679			304		Diversified Financial Services - (0.08)%
						Alliance Data Systems Corp ^(a)	1,032			211
VF Corp	7,294			453
						American Express Co		715		47
		$		1,625
								$		258
Automobile Manufacturers - (0.48)%
Ford Motor Co	125,174			1,577		Electric - (1.33)%
						Alliant Energy Corp	3,991			151
						Ameren Corp	2,258			111
Automobile Parts & Equipment - (0.31)%						Consolidated Edison Inc	9,979			751
Delphi Automotive PLC	12,568			888		Dominion Resources Inc/VA	4,166			309
Goodyear Tire & Rubber Co/The	4,601			135		Edison International	1,463			106
		$		1,023		Entergy Corp	3,141			246
						Eversource Energy	1,220			66
Banks - (1.36)%
						Exelon Corp	14,514			493
DBS Group Holdings Ltd	66,049			726
Deutsche Bank AG ^(a)	58,668			863		NextEra Energy Inc	2,985			361
						PG&E Corp	8,699			539
DNB ASA	44,000			533
						Pinnacle West Capital Corp	1,955			147
Goldman Sachs Group Inc/The	3,971			673
						Public Service Enterprise Group Inc	8,564			366
Societe Generale SA	11,703			427
						SCANA Corp	2,509			177
Svenska Handelsbanken AB	60,000			773
						Southern Co/The	9,133			469
UniCredit SpA	175,000			450
						Xcel Energy Inc	1,541			64
		$		4,445
								$		4,356
Beverages - (0.47)%
						Electrical Components & Equipment - (0.06)%
Constellation Brands Inc	3,522			578
						Acuity Brands Inc		765		211
Molson Coors Brewing Co	3,773			386
Monster Beverage Corp ^(a)	3,546			546
		$		1,510		Electronics - (0.62)%
						Allegion PLC	1,701			121
Biotechnology - (0.63)%						Amphenol Corp	5,420			338
Alexion Pharmaceuticals Inc ^(a)	3,937			496
						Corning Inc	18,213			413
Illumina Inc(a)	2,574			433		Fingerprint Cards AB ^(a)	35,000			445
Regeneron Pharmaceuticals Inc ^(a)	1,826			717
Vertex Pharmaceuticals Inc ^(a)	4,464			422		Honeywell International Inc	2,322			271
						PerkinElmer Inc	1,930			103
		$		2,068		Tyco International Plc	7,482			327
Building Materials - (0.19)%								$		2,018
Fortune Brands Home & Security Inc	2,701			172		Energy - Alternate Sources - (0.10)%
Martin Marietta Materials Inc	1,115			204		First Solar Inc ^(a)	1,797			68
Vulcan Materials Co	2,102			239		Vestas Wind Systems A/S	3,000			249
		$		615				$		317

Chemicals - (1.21)%						Engineering & Construction - (0.31)%
CF Industries Holdings Inc	4,094			107		Fluor Corp	2,445			127
Dow Chemical Co/The	19,789			1,061		JM AB	35,000			888
EI du Pont de Nemours & Co	15,353			1,069				$		1,015
Monsanto Co	7,684			818
Wacker Chemie AG	9,500			882		Environmental Control - (0.09)%
		$		3,937		Stericycle Inc ^(a)	1,258			108
						Waste Management Inc	2,840			182
Commercial Services - (0.40)%								$		290
Equifax Inc	1,800			237
Global Payments Inc	2,712			206		Food - (1.53)%
Nielsen Holdings PLC	6,275			334		Colruyt SA	7,500			412
PayPal Holdings Inc ^(a)	8,682			323		General Mills Inc	10,482			742
Quanta Services Inc ^(a)	2,385			62		Hershey Co/The	3,543			354
						ICA Gruppen AB	32,000			1,094


Schedule of Investments
Multi-Manager Equity Long/Short Fund
August 31, 2016


Short Sales Outstanding



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

Food (continued)					Leisure Products & Services (continued)
Kellogg Co		758	$	62	Royal Caribbean Cruises Ltd	3,780		$	269
Kroger Co/The	16,523			529			$		894
McCormick & Co Inc/MD	2,224			227
Whole Foods Market Inc	24,570			746	Lodging - (0.05)%
Woolworths Ltd	44,939			799	Wynn Resorts Ltd	1,787			160
		$		4,965

Forest Products & Paper - (0.07)%					Machinery - Construction & Mining - (0.50)%
					Caterpillar Inc	19,985			1,638
International Paper Co		312		15
Stora Enso OYJ	25,000			221
		$		236	Machinery - Diversified - (0.48)%
					Flowserve Corp	2,278			110
Gas - (0.13)%					Kone OYJ	13,000			653
NiSource Inc		626		15	Metso OYJ	23,000			644
Sempra Energy	3,783			396	Roper Technologies Inc		99		17
		$		411	Xylem Inc/NY	3,147			160
Hand & Machine Tools - (0.02)%							$		1,584
Stanley Black & Decker Inc		447		55	Media - (0.23)%
					Walt Disney Co/The	8,042			760
Healthcare - Products - (1.83)%
Abbott Laboratories	15,223			640	Mining - (0.07)%
Baxter International Inc	3,863			180	Alcoa Inc	22,972			231
Becton Dickinson and Co	3,740			663
Boston Scientific Corp ^(a)	22,862			545
CR Bard Inc	1,291			285	Miscellaneous Manufacturers - (0.25)%
DENTSPLY SIRONA Inc	4,092			251	Eaton Corp PLC	4,839			322
Edwards Lifesciences Corp ^(a)	3,734			430	Ingersoll-Rand PLC	4,532			308
Henry Schein Inc ^(a)	1,436			235	Textron Inc	4,720			193
Hologic Inc ^(a)	3,910			150			$		823
Intuitive Surgical Inc ^(a)		677		465
					Office & Business Equipment - (0.05)%
Medtronic PLC	7,553			657
					Xerox Corp	17,796			175
St Jude Medical Inc	1,315			102
Stryker Corp	6,569			760
Thermo Fisher Scientific Inc	3,194			486	Oil & Gas - (2.69)%
Varian Medical Systems Inc ^(a)	1,655			159	Apache Corp	5,813			289
		$		6,008	Cabot Oil & Gas Corp	8,167			201
					Chevron Corp	9,630			968
Holding Companies - Diversified - (0.02)%					Cimarex Energy Co	1,668			221
Leucadia National Corp	4,008			77	Concho Resources Inc ^(a)	2,314			299
					ConocoPhillips	21,630			888
Home Builders - (0.29)%					Devon Energy Corp	9,202			399
Lennar Corp - A Shares	17,066			807	EOG Resources Inc	7,588			671
PulteGroup Inc	6,039			129	EQT Corp	3,025			216
		$		936	Exxon Mobil Corp		542		47
					Hess Corp	5,562			302
Housewares - (0.14)%					Neste Oyj	18,000			750
Newell Brands Inc	8,468			449	Newfield Exploration Co ^(a)	3,478			151
					Occidental Petroleum Corp	11,311			869
Insurance - (0.57)%					Phillips 66	9,017			707
Allstate Corp/The	1,138			78	Pioneer Natural Resources Co	2,306			413
Aon PLC	4,643			517	Range Resources Corp	2,977			115
Assurant Inc	1,065			95	Southwestern Energy Co ^(a)	6,893			96
Loews Corp	3,242			136	Statoil ASA	65,000			1,020
Marsh & McLennan Cos Inc	8,956			606	Tesoro Corp	2,083			157
Travelers Cos Inc/The		233		28			$		8,779
Willis Towers Watson PLC	2,430			301	Oil & Gas Services - (0.40)%
XL Group Ltd	1,915			65	Schlumberger Ltd	10,477			828
		$		1,826	Subsea 7 SA ^(a)	45,000			486
Internet - (0.81)%							$		1,314
Amazon.com Inc ^(a)	1,079			830
					Packaging & Containers - (0.14)%
Expedia Inc	2,712			296	Ball Corp	2,968			235
Facebook Inc ^(a)	3,312			418
					Owens-Illinois Inc ^(a)	2,845			51
Netflix Inc ^(a)	7,516			732
Priceline Group Inc/The ^(a)		126		178	Sealed Air Corp	3,428			162
TripAdvisor Inc ^(a)	2,558			156			$		448
		$		2,610	Pharmaceuticals - (1.45)%
					Allergan plc ^(a)	5,794			1,359
Leisure Products & Services - (0.27)%					Bristol-Myers Squibb Co		65		4
Carnival Corp	13,083			625	Eli Lilly & Co	17,887			1,391


Schedule of Investments
Multi-Manager Equity Long/Short Fund
August 31, 2016


Short Sales Outstanding



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

Pharmaceuticals (continued)						Telecommunications (continued)
Endo International PLC ^(a)	3,890		$	80		Frontier Communications Corp	20,601		$	95
Mead Johnson Nutrition Co	3,244			276		Motorola Solutions Inc	3,048			235
Merck & Co Inc	8,930			561				$		565
Mylan NV ^(a)	8,926			378
Perrigo Co PLC	2,515			229		Textiles - (0.02)%
						Mohawk Industries Inc ^(a)	358			76
Zoetis Inc	8,701			444
		$		4,722
						Toys, Games & Hobbies - (0.06)%
Pipelines - (0.14)%
						Mattel Inc	5,981			198
Spectra Energy Corp	12,313			439

						Transportation - (0.39)%
REITS - (1.23)%
						Kansas City Southern	1,896			183
American Tower Corp	7,462			846
						Ryder System Inc	939			61
Apartment Investment & Management Co	1,209			55
						United Parcel Service Inc	9,226			1,008
Boston Properties Inc		107		15
Crown Castle International Corp	5,928			562				$		1,252
Equinix Inc	1,235			455		TOTAL COMMON STOCKS (proceeds $95,050)		$		94,613
Equity Residential	5,272			342		INVESTMENT COMPANIES - (8.04)%	Shares	Value(000			's)
Iron Mountain Inc	4,320			166		Exchange Traded Funds - (8.04)%
Macerich Co/The	2,541			208		Consumer Discretionary Select Sector SPDR	17,909			1,443
Public Storage	3,041			681		Fund
Realty Income Corp	1,511			99		Health Care Select Sector SPDR Fund	8,994			654
Simon Property Group Inc		462		100		Industrial Select Sector SPDR Fund	28,403			1,664
UDR Inc		6		—		Materials Select Sector SPDR Fund	17,357			844
Ventas Inc		497		36		Source STOXX Europe 600 Optimised	2,500			922
Vornado Realty Trust		432		45		Automobiles & Parts UCITS ETF
Weyerhaeuser Co	13,244			422		Source STOXX Europe 600 Optimised Banks	25,000			1,613
		$		4,032		UCITS ETF
Retail - (2.56)%						Source STOXX Europe 600 Optimised Basic	5,750			1,329
Advance Auto Parts Inc	1,293			204		Resources UCITS ETF
Chipotle Mexican Grill Inc ^(a)	1,924			796		Source STOXX Europe 600 Optimised Food &	5,000			1,993
Cie Financiere Richemont SA	29,297			1,689		Beverage UCITS ETF
Costco Wholesale Corp	7,351			1,192		Source STOXX Europe 600 Optimised	4,500			930
Darden Restaurants Inc	9,736			600		Industrial Goods & Services UCITS ETF
L Brands Inc		348		27		Source STOXX Europe 600 Optimised Oil &	3,800			637
Nordstrom Inc	3,027			153		Gas UCITS ETF
Starbucks Corp	9,298			523		Source STOXX Europe 600 Optimised Retail	6,500			1,116
Swatch Group AG/The	2,688			692		UCITS ETF
Target Corp	16,902			1,186		Source STOXX Europe 600 Optimised	11,000			751
Ulta Salon Cosmetics & Fragrance Inc ^(a)	1,089			269		Technology UCITS ETF
Wal-Mart Stores Inc	14,031			1,002		SPDR S&P Regional Banking ETF	29,606			1,274
		$		8,333		SPDR S&P500 ETF Trust	37,251			8,100
						Technology Select Sector SPDR Fund	62,565			2,940
Semiconductors - (1.18)%								$		26,210
ASML Holding NV	6,500			694		TOTAL INVESTMENT COMPANIES (proceeds $25,163)		$		26,210
Broadcom Ltd	6,933			1,223		TOTAL SHORT SALES (proceeds $120,213)		$		120,823
Microchip Technology Inc	3,776			234
Micron Technology Inc ^(a)	18,194			300
NVIDIA Corp	9,375			575
Qorvo Inc ^(a)	2,238			128		(a) Non-Income Producing Security
REC Silicon ASA ^(a)	3,226,254			464
Skyworks Solutions Inc	2,166			162
Texas Instruments Inc	1,245			87
		$		3,867

Software - (1.44)%
Activision Blizzard Inc	4,281			177
Adobe Systems Inc ^(a)	7,449			762
Autodesk Inc ^(a)	3,945			266
Cerner Corp ^(a)	6,191			400
Dun & Bradstreet Corp/The		526		73
Microsoft Corp	3,681			212
Oracle Corp	14,604			602
Paychex Inc	1,387			84
Red Hat Inc ^(a)	3,180			232
salesforce.com Inc ^(a)	11,898			945
Workday Inc ^(a)	10,536			893
		$		4,646

Telecommunications - (0.17)%
AT&T Inc	5,759			235


INVESTMENT COMPANIES - 0.78%			Shares Held	Value(000			's)				Principal
Exchange Traded Funds - 0.78%								MUNICIPAL BONDS (continued)			Amount (000's)		Value(000		's)
SPDR Nuveen S&P High Yield Municipal			3,040	$		181		Connecticut - 3.06%
Bond ETF								Connecticut State Health & Educational
VanEck Vectors High-Yield Municipal Index			17,000			551		Facility Authority
ETF								5.00%, 09/01/2046^(b)		$	1,500	$		1,663
VanEck Vectors Short High-Yield Municipal			14,000			355		Mohegan Tribal Finance Authority
Index ETF								7.00%, 02/01/2045^(b)			2,500			2,623
				$		1,087						$		4,286
TOTAL INVESTMENT COMPANIES				$		1,087		Florida - 1.10%
			Principal					Orange County Housing Finance Authority
BONDS- 0.37	%		Amount (000's)	Value(000			's)	7.00%, 10/01/2025			485			492
U.S. Municipals - 0.37%								Orange County Industrial Development
Oglala Sioux Tribe								Authority/FL
5.75%, 10/01/2025^(a),(b)		$	500		$	515		8.00%, 07/01/2036^(b)			1,000			1,059
												$		1,551
TOTAL BONDS				$		515		Georgia - 0.40%
			Principal					City of Atlanta GA
MUNICIPAL BONDS - 101.89%			Amount (000's)	Value(000			's)	7.38%, 01/01/2031			500			564
Alabama - 2.30%
Lower Alabama Gas District/The								Illinois - 13.01%
5.00%, 09/01/2034		$	2,500	$		3,224		Chicago O'Hare International Airport
								5.00%, 01/01/2033			1,250			1,499
Arizona - 4.89%								City of Chicago IL
Navajo Nation								5.50%, 01/01/2033			1,000			1,059
5.50%, 12/01/2030^(b)			2,500			2,854		5.50%, 01/01/2042			300			314
Salt Verde Financial Corp								7.46%, 02/15/2026			1,953			1,390
5.00%, 12/01/2032			3,205			4,006		City of Chicago IL Wastewater Transmission
				$		6,860		Revenue
California - 14.62%								5.00%, 01/01/2031			760			888
Abag Finance Authority for Nonprofit Corps								5.00%, 01/01/2039			1,200			1,381
5.00%, 08/01/2043			500			594		City of Chicago IL Waterworks Revenue
California Educational Facilities Authority								5.00%, 11/01/2025			500			603
5.00%, 12/29/2015^(c)			1,730			1,905		Illinois Finance Authority
5.00%, 10/01/2038^(c)			900			978		5.00%, 02/15/2041			850			970
								Illinois State Toll Highway Authority
California Pollution Control Financing								5.00%, 01/01/2040^(c)			5,000			6,012
Authority
4.30%, 07/01/2040			1,000			1,083		Metropolitan Pier & Exposition
								Authority (credit support from NATL)
California Statewide Communities								5.50%, 06/15/2029^(c)			1,000			1,263
Development Authority (credit support from
GNMA COLL)								Metropolitan Water Reclamation District of
4.90%, 07/20/2039^(c)			500			540		Greater Chicago
California Statewide Financing Authority								5.00%, 12/01/2045			1,000			1,204
6.00%, 05/01/2043			1,000			1,017		State of Illinois
Golden State Tobacco Securitization Corp								4.00%, 06/01/2037			350			348
5.75%, 06/01/2047			4,260			4,354		5.50%, 07/01/2027			1,150			1,326
La Verne Public Financing Authority												$		18,257
7.25%, 09/01/2026			700			702		Indiana - 0.51%
Morongo Band of Mission Indians/The								Indiana Finance Authority
6.50%, 03/01/2028^(b)			825			886		5.00%, 10/01/2044			300			344
Oakland Unified School District/Alameda								Town of Shoals IN
County								7.25%, 11/01/2043			300			363
5.00%, 08/01/2035			1,225			1,501						$		707
Sacramento Area Flood Control								Iowa- 0.83	%
Agency (credit support from BAM)								Xenia Rural Water District
5.00%, 10/01/2039^(c)			500			598		5.00%, 12/01/2041^(c)			1,000			1,170
San Diego Community College District
5.25%, 08/01/2033^(c)			1,050			1,189		Louisiana - 3.03%
University of California								Juban Crossing Economic Development
5.00%, 05/15/2033			2,750			3,472		District
5.25%, 05/15/2039^(c)			1,257			1,413		7.00%, 09/15/2044^(b)			1,000			1,081
5.25%, 05/15/2039^(c)			243			273		7.00%, 09/15/2044^(b)			500			540
				$		20,505		Louisiana Public Facilities Authority
Colorado - 4.11%								8.38%, 07/01/2039			400			231
Colorado Health Facilities Authority								Parish of St John the Baptist LA
5.00%, 05/15/2040			1,000			1,182		5.13%, 06/01/2037			2,350			2,405
5.00%, 05/15/2045			1,000			1,179						$		4,257
Green Gables Metropolitan District No 1								Maine- 0.42	%
5.30%, 12/01/2046			1,250			1,284		Maine Health & Higher Educational Facilities
Promenade Castle Rock Metropolitan District								Authority
No 1								5.00%, 07/01/2046			500			582
5.75%, 12/01/2039			1,000			1,061
Sierra Ridge Metropolitan District No 2								Maryland - 1.65%
5.50%, 12/01/2046			1,000			1,058		City of Westminster MD
				$		5,764		6.25%, 07/01/2044			600			687


Schedule of Investments
Opportunistic Municipal Fund
August 31, 2016



		Principal							Principal
MUNICIPAL BONDS (continued)		Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)
Maryland (continued)						North Carolina - 1.32%
Maryland Economic Development Corp						North Carolina Eastern Municipal Power
5.00%, 03/31/2041	$	1,000	$	1,195		Agency
5.38%, 06/01/2025		390		437		5.25%, 01/01/2020		$	750	$	796
			$	2,319		North Carolina Medical Care Commission
Michigan - 1.68%						5.25%, 10/01/2035			1,000		1,056
Michigan Finance Authority										$	1,852
5.00%, 07/01/2035		1,000		1,174		Ohio- 1.22	%
Wayne County Airport Authority						Ohio Air Quality Development Authority
5.00%, 12/01/2045		1,000		1,178		3.75%, 12/01/2023			1,000		993
			$	2,352		Ohio Water Development Authority
Minnesota - 0.86%						4.00%, 01/01/2034			750		722
Housing & Redevelopment Authority of The										$	1,715
City of St Paul Minnesota						Oklahoma - 0.25%
5.00%, 11/15/2030		1,000		1,208		Tulsa Airports Improvement Trust
						5.00%, 06/01/2035^(f)			300		349
Missouri - 1.39%
City of St Louis MO Airport Revenue (credit						Oregon - 0.40%
support from NATL)						Warm Springs Reservation Confederated
5.50%, 07/01/2028^(c)		400		522		Tribe
Health & Educational Facilities Authority of						6.38%, 11/01/2033			500		556
the State of Missouri
5.00%, 02/01/2036		290		339		Pennsylvania - 4.56%
Kansas City Industrial Development						Allegheny County Industrial Development
Authority						Authority
5.00%, 04/01/2046^(b)		1,100		1,098		6.00%, 07/15/2038			400		435
			$	1,959		Chester County Health & Education Facilities
Nevada - 0.84%						Authority
Las Vegas Redevelopment Agency						5.25%, 12/01/2045			1,000		1,053
5.00%, 06/15/2045		1,000		1,178		City of Scranton PA
						5.00%, 11/15/2032			1,500		1,630
New Jersey - 9.01%						8.50%, 09/01/2022^(a)			200		224
Casino Reinvestment Development Authority						Lancaster County Hospital Authority/PA
5.25%, 11/01/2039		250		265		5.00%, 07/01/2045			1,250		1,429
Essex County Improvement Authority						Pennsylvania Economic Development
5.25%, 07/01/2045^(b)		1,300		1,359		Financing Authority
New Jersey Economic Development						5.50%, 11/01/2044			1,000		1,124
Authority						6.00%, 06/01/2031			500		500
5.25%, 06/15/2040		1,000		1,155						$	6,395
5.63%, 11/15/2030		1,000		1,162		South Carolina - 0.86%
5.75%, 09/15/2027		500		573		South Carolina Public Service Authority
New Jersey Educational Facilities						5.25%, 12/01/2055			1,000		1,206
Authority (credit support from AGM)
5.00%, 07/01/2034^(c)		1,000		1,198		Tennessee - 3.04%
5.00%, 07/01/2035^(c)		500		603		Chattanooga Health Educational & Housing
New Jersey Health Care Facilities Financing						Facility Board
Authority (credit support from AGM)						5.00%, 10/01/2028			1,050		1,272
5.00%, 07/01/2046^(c)		1,900		2,232		5.00%, 10/01/2035			500		589
New Jersey Transportation Trust Fund						Metropolitan Government Nashville &
Authority						Davidson County Health & Educational Facs
5.25%, 06/15/2032		2,000		2,317		Bd
Newark Housing Authority (credit support						5.00%, 07/01/2046			2,000		2,397
from AGM MUN GOVT GTD)										$	4,258
5.00%, 12/01/2038^(c)		1,500		1,776		Texas- 9.06	%
			$	12,640		Arlington Higher Education Finance Corp
New York - 11.15%						5.00%, 12/01/2046			1,100		1,273
Brooklyn Arena Local Development Corp						City of Dallas TX
5.00%, 07/15/2042^(c)		2,000		2,424		5.00%, 02/15/2027			1,000		1,260
6.25%, 07/15/2040		480		567		City of Houston TX Airport System Revenue
Build NYC Resource Corp						4.50%, 07/01/2020			1,000		1,085
5.00%, 07/01/2035		1,500		1,786		Harris County Cultural Education Facilities
5.50%, 09/01/2045^(b)		1,000		1,199		Finance Corp
Metropolitan Transportation Authority						6.00%, 10/01/2043			1,575		1,874
5.00%, 11/15/2034		1,000		1,230		Mission Economic Development Corp
New York Liberty Development Corp						5.75%, 10/01/2031^(b)			2,000		2,134
5.25%, 10/01/2035		1,280		1,757		New Hope Cultural Education Facilities
New York State Thruway Authority						Finance Corp
5.25%, 01/01/2056		1,000		1,237		5.00%, 07/01/2030			500		578
New York Transportation Development Corp						5.00%, 07/01/2047			1,500		1,679
5.00%, 08/01/2021		1,500		1,688		North Texas Tollway Authority
5.00%, 01/01/2023		560		675		5.00%, 01/01/2045			615		733
5.25%, 01/01/2050		2,650		3,100		Port Beaumont Navigation District
			$	15,663		7.25%, 02/01/2036^(b)			1,000		1,069


		Principal					Portfolio Summary (unaudited)
MUNICIPAL BONDS (continued)		Amount (000's)			Value(000	's)	Sector	Percent
Texas (continued)							Revenue Bonds	82.27	%
Texas Private Activity Bond Surface							General Obligation Unlimited	6.27	%
Transportation Corp							Insured	6.23	%
6.88%, 12/31/2039	$	550		$	650		General Obligation Limited	3.33	%
7.00%, 12/31/2038		300			379		Prerefunded	1.56	%
				$	12,714		Tax Allocation	1.24	%
Virginia - 1.86%							Certificate Participation	0.99	%
County of Botetourt VA							Investment Companies	0.78	%
6.00%, 07/01/2044		1,000			1,078		Government	0.37	%
Fairfax County Economic Development							Liability For Floating Rate Notes Issued	(3.97	)%
Authority							Other Assets and Liabilities	0.93	%
5.00%, 10/01/2042^(c)		1,000			1,177		TOTAL NET ASSETS	100.00	%
Fairfax County Industrial Development
Authority
5.00%, 05/15/2035^(c)		300			353
				$	2,608
Washington - 0.19%
Port of Seattle Industrial Development Corp
5.00%, 04/01/2030		250			271

West Virginia - 0.72%
West Virginia Economic Development
Authority
2.88%, 12/15/2026		1,000			1,007

Wisconsin - 3.55%
Public Finance Authority
4.00%, 08/01/2035		500			514
4.00%, 12/01/2036		2,000			2,023
5.00%, 12/01/2025		1,500			1,770
5.25%, 04/01/2030		600			672
				$	4,979
TOTAL MUNICIPAL BONDS				$	142,956
Total Investments				$	144,558
Liability for Floating Rate Notes Issued in Conjunction with
Securities Held - (3.97)%
Notes with interest rates of 0.59% - 0.64% at	$	(5,565	)	$	(5,565	)
August 31, 2016 and contractual maturity of
collateral from 2017-2024.^(g)
Total Net Investments				$	138,993
Other Assets and Liabilities - 0.93%				$	1,311
TOTAL NET ASSETS - 100.00%				$	140,304


Schedule of Investments
Origin Emerging Markets Fund
August 31, 2016



COMMON STOCKS - 96.17%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Advertising - 0.56%					Forest Products & Paper - 0.98%
Smiles SA	278,379	$	4,322		Mondi PLC	376,654	$		7,664

Aerospace & Defense - 0.63%					Hand & Machine Tools - 0.45%
Hanwha Techwin Co Ltd	89,000		4,913		Techtronic Industries Co Ltd	857,000			3,471

Agriculture - 3.15%					Healthcare - Products - 1.08%
KT&G Corp	234,006		24,533		China Medical System Holdings Ltd	2,500,000			4,179
					St Shine Optical Co Ltd	170,000			4,192
Automobile Manufacturers - 3.37%							$		8,371
Geely Automobile Holdings Ltd	21,103,400		16,882		Holding Companies - Diversified - 1.95%
Tata Motors Ltd ADR	230,000		9,377		KOC Holding AS	678,600			2,946
		$	26,259		Siam Cement PCL/The	798,900			12,227
Automobile Parts & Equipment - 1.65%							$		15,173
Hankook Tire Co Ltd	85,066		4,254		Home Furnishings - 3.41%
Hanon Systems	455,499		4,768		Coway Co Ltd	41,466			3,097
Xinyi Glass Holdings Ltd ^(a)	4,406,000		3,788		Skyworth Digital Holdings Ltd	8,190,900			6,053
		$	12,810		Steinhoff International Holdings NV	2,903,806			17,433
Banks - 1.30%							$		26,583
China CITIC Bank Corp Ltd	5,103,793		3,360		Insurance - 2.67%
China Construction Bank Corp	9,045,528		6,764		China Life Insurance Co Ltd/Taiwan	6,554,080			5,793
		$	10,124		PICC Property & Casualty Co Ltd	4,799,727			7,899
Beverages - 0.78%					Samsung Life Insurance Co Ltd	40,044			3,695
Ambev SA	1,020,700		6,037		Sul America SA	679,400			3,431
							$		20,818
Chemicals - 3.87%					Internet - 10.66%
LG Chem Ltd	46,978		11,355		Alibaba Group Holding Ltd ADR^(a)	195,900			19,040
Lotte Chemical Corp	27,772		6,654		Com2uSCorp ^(a)	81,123			7,506
PTT Global Chemical PCL ^(b)	4,770,100		8,385		NAVER Corp	22,800			17,253
Sinopec Shanghai Petrochemical Co Ltd	7,302,000		3,765		Tencent Holdings Ltd	1,511,305			39,165
		$	30,159				$		82,964
Commercial Services - 3.25%					Lodging - 1.21%
Kroton Educacional SA	1,047,400		4,457		Kangwon Land Inc	266,475			9,422
Localiza Rent a Car SA	285,000		3,565
New Oriental Education & Technology Group	348,600		13,763		Machinery - Diversified - 0.74%
Inc ADR					Hollysys Automation Technologies Ltd ^(a)	270,810			5,766
Zhejiang Expressway Co Ltd	3,123,700		3,479
		$	25,264		Mining - 0.47%
Computers - 2.12%					Korea Zinc Co Ltd	8,521			3,650
Cognizant Technology Solutions Corp ^(a)	139,200		7,996
Infosys Ltd ADR	278,800		4,422		Miscellaneous Manufacturers - 3.82%
Lite-On Technology Corp	2,720,510		4,110		Largan Precision Co Ltd	33,000			3,690
		$	16,528		Sunny Optical Technology Group Co Ltd	3,099,525			16,528
Cosmetics & Personal Care - 1.01%					Zhuzhou CRRC Times Electric Co Ltd	1,800,000			9,548
LG Household & Health Care Ltd	9,256		7,887				$		29,766
					Oil & Gas - 0.89%
Diversified Financial Services - 3.02%					SK Innovation Co Ltd	53,266			6,914
E.Sun Financial Holding Co Ltd	9,340,760		5,248
Mega Financial Holding Co Ltd	9,062,000		6,162		Pharmaceuticals - 2.95%
Noah Holdings Ltd ADR^(a)	194,400		5,113		Richter Gedeon Nyrt	402,732			8,262
Taishin Financial Holding Co Ltd	18,409,301		6,954		Sinopharm Group Co Ltd	2,879,900			14,718
		$	23,477				$		22,980
Electric - 2.92%					Real Estate - 2.35%
Korea Electric Power Corp	437,873		22,743		China Overseas Land & Investment Ltd	3,347,900			11,027
					China Vanke Co Ltd	2,838,200			7,259
Electronics - 3.26%							$		18,286
AAC Technologies Holdings Inc	1,624,518		18,502		Retail - 2.52%
Hon Hai Precision Industry Co Ltd	1,261,758		6,874		ANTA Sports Products Ltd	2,724,000			7,356
		$	25,376		Raia Drogasil SA	365,900			6,736
Energy - Alternate Sources - 0.47%					Truworths International Ltd	1,065,070			5,520
Xinyi Solar Holdings Ltd ^(a)	9,000,000		3,692				$		19,612
					Semiconductors - 12.76%
Engineering & Construction - 1.18%					Phison Electronics Corp	645,600			4,660
Grupo Aeroportuario del Centro Norte SAB de	920,100		5,664		Powertech Technology Inc	1,433,000			3,736
CV					Realtek Semiconductor Corp	1,287,000			5,141
Promotora y Operadora de Infraestructura	292,975		3,513		Samsung Electronics Co Ltd	53,377			38,625
SAB de CV					Silicon Motion Technology Corp ADR	121,400			6,128
		$	9,177		Taiwan Semiconductor Manufacturing Co Ltd	1,309,217			37,627
Food - 2.49%					ADR
BIM Birlesik Magazalar AS	176,403		3,023		Win Semiconductors Corp	1,720,000			3,453
SPAR Group Ltd/The	590,616		7,717				$		99,370
X5 Retail Group NV ^(a)	328,000		8,663		Software - 3.62%
		$	19,403		NetEase Inc ADR	112,335			23,812


				Schedule of Investments
Origin Emerging Markets Fund
August 31, 2016



COMMON STOCKS (continued)		Shares Held	Value (000's)
Software (continued)
TravelSky Technology Ltd		2,021,000	$	4,391
			$	28,203
Telecommunications - 5.02%
China Mobile Ltd		1,176,443		14,493
Chunghwa Telecom Co Ltd		5,929,400		21,287
Vodacom Group Ltd		319,597		3,326
			$	39,106
Water - 3.59%
Cia de Saneamento Basico do Estado de Sao		950,000		8,599
Paulo
Guangdong Investment Ltd		12,547,064		19,375
			$	27,974
TOTAL COMMON STOCKS			$	748,797
INVESTMENT COMPANIES - 3.64%		Shares Held	Value (000's)
Money Market Funds - 3.64%
First American Government Obligations Fund		28,364,471		28,364

TOTAL INVESTMENT COMPANIES			$	28,364
Total Investments			$	777,161
Other Assets and Liabilities - 0.19%			$	1,484
TOTAL NET ASSETS - 100.00%			$	778,645


(a)	Non-Income Producing Security
(b)	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
	$8,385 or 1.08% of net assets.



	Portfolio Summary (unaudited)
Country				Percent
China				30.19	%
Korea, Republic Of				22.76	%
Taiwan, Province Of China				16.05	%
Hong Kong				7.48	%
South Africa				5.35	%
Brazil				4.78	%
United States				4.66	%
Thailand				2.65	%
India				1.77	%
Mexico				1.18	%
Russian Federation				1.11	%
Hungary				1.06	%
Turkey				0.77	%
Other Assets and Liabilities				0.19	%
TOTAL NET ASSETS				100.00	%



Futures Contracts

										Unrealized
Type		Long/Short		Contracts		Notional Value		Fair Value		Appreciation/(Depreciation)
eMini MSCI Emerging Markets; September 2016		Long		685	$	30,550	$	30,411	$	(139	)
Total								$		(139	)

Amounts in thousands except contracts


INVESTMENT COMPANIES - 2.87%			Shares Held		Value(000	's)	PREFERRED STOCKS (continued)										Shares Held		Value(000	's)
Money Market Funds - 2.87%							Electric (continued)
Goldman Sachs Financial Square Funds -			167,452,081	$	167,452		Entergy New Orleans Inc					5.00		%			3,299	$	85
		Government Fund					Entergy New Orleans Inc					5.50		%			20,000		541
							Entergy Texas Inc 5.63%										15,618		428
TOTAL INVESTMENT COMPANIES				$	167,452		Georgia Power Co 6.50%^(a)										97,900		10,305
							Gulf Power Co 6.00%^(a)										60,914		6,078
CONVERTIBLE PREFERRED STOCKS -1.42%
							Gulf Power Co 6.45%^(a)										9,400		981
			Shares Held		Value(000	's)
							Integrys Holding Inc 6.00%^(b)										87,600		2,404
Banks- 1.42	%
Wells Fargo & Co 7.50%^(a)			60,982	$	82,478		Interstate Power & Light Co						5.10	%^(a)			485,100		13,335
							NextEra Energy Capital Holdings Inc								5.00	%	491,093		12,631
TOTAL CONVERTIBLE PREFERRED STOCKS				$	82,478		NextEra Energy Capital Holdings Inc								5.13	%	662,215		17,006
PREFERRED STOCKS - 29.77%			Shares Held		Value(000	's)	NextEra Energy Capital Holdings Inc								5.63	%	170,585		4,442
							NextEra Energy Capital Holdings Inc								5.70	%	322,465		8,258
Banks- 9.04	%
AgriBank FCB 6.88%^(a),(b)			61,700		6,637		PPL Capital Funding Inc 5.90%										735		20
Bank of America Corp 6.38%^(a)			17,626		457													$	139,468
Bank of America Corp 6.50%^(a)			490		13		Food- 0.43	%
Bank of America Corp 6.63%^(a)			201,813		5,427		Dairy Farmers of America Inc 7.88%^(a),(c)										12,000		1,273
Bank of New York Mellon Corp/The 5.20%^(a)			139,534		3,659		Dairy Farmers of America Inc 7.88%^(a),(c)										232,500		23,962
Barclays Bank PLC 7.10%^(a)			1,011,767		26,093													$	25,235
Barclays Bank PLC 8.13%^(a)			249,031		6,520		Hand & Machine Tools - 0.50%
BB&T Corp 5.63%^(a)			150,000		4,044		Stanley Black & Decker Inc 5.75%										1,104,374		29,012
Capital One Financial Corp 6.00%^(a)			533,401		13,842
Citigroup Inc 6.88%^(a)			9,618		267		Insurance - 7.04%
Citigroup Inc 6.88%^(a),(b)			493,542		14,604		Aegon NV 4.00%^(a),(b)										66,900		1,650
CoBank ACB 6.13%^(a)			8,000		799		Aegon NV 6.38%^(a)										975,042		25,078
CoBank ACB 6.20%^(a),(b)			65,000		6,817		Aegon NV 6.50%^(a)										243,544		6,361
CoBank ACB 6.25%^(a),(b)			296,500		31,512		Aegon NV 8.00%										63,317		1,698
Cullen/Frost Bankers Inc 5.38%^(a)			276,081		7,584		Aflac Inc 5.50%										1,084,662		28,830
							Allstate Corp/The 5.10%^(b)										540,300		15,107
Deutsche Bank Contingent Capital Trust II			1,089,334		27,408
6.55%^(a)							Allstate Corp/The 6.25%^(a)										181,500		5,129
Goldman Sachs Group Inc/The 5.50%^(a),(b)			774,944		20,962		Allstate Corp/The 6.63%^(a)										380,000		10,655
HSBC Holdings PLC 6.20%^(a)			1,028,013		26,790		American Financial Group Inc/OH 5.75%										441,277		11,381
HSBC Holdings PLC 8.00%^(a)			348,226		9,179		American Financial Group Inc/OH 6.25%										250,786		6,944
Huntington Bancshares Inc/OH 5.88%^(a)			326,087		8,514		Arch Capital Group Ltd 6.75%^(a)										699,190		18,410
Huntington Bancshares Inc/OH 6.25%^(a)			1,050,000		29,169		Aspen Insurance Holdings Ltd 5.95%^(a),(b),(d)										450,449		13,464
ING Groep NV 6.13%^(a)			55,705		1,437		Aspen Insurance Holdings Ltd 7.25%^(a)										45,141		1,196
ING Groep NV 6.38%^(a)			829,730		21,324		Axis Capital Holdings Ltd 5.50%^(a)										155,098		4,140
ING Groep NV 7.05%^(a)			1,017,959		25,429		Axis Capital Holdings Ltd 6.88%^(a)										2,072,850		54,018
ING Groep NV 7.20%^(a)			163,000		4,271		Delphi Financial Group Inc 7.38%^(b)										527,604		11,739
KeyCorp 8.63%^(a),(b)			368,904		9,665		Hartford Financial Services Group Inc/The										1,040,014		32,688
M&T Bank Corp 6.38%^(a),(b)			5,400		5,726		7.88%^(b)
M&T Bank Corp 6.38%^(a),(b)			7,150		7,581		Protective Life Corp 6.00%										10,311		271
Merrill Lynch Capital Trust I 6.45%^(b)			315,326		8,151		Protective Life Corp 6.25%										336,151		8,753
Morgan Stanley 7.13%^(a),(b)			24,282		742		Prudential PLC 6.50%^(a)										92,849		2,532
							Prudential PLC 6.75%^(a)										174,600		4,681
PNC Financial Services Group Inc/The			1,730,132		52,250
6.13%^(a),(b)							Reinsurance Group of America Inc 6.20%^(b)										577,300		17,689
Royal Bank of Scotland Group PLC 5.75%^(a)			396,429		10,188		RenaissanceRe Holdings Ltd						5.38	%^(a)			654,975		17,363
State Street Corp 5.25%^(a)			1,425,192		36,855		RenaissanceRe Holdings Ltd 6.08%^(a)										178,371		4,520
State Street Corp 5.90%^(a),(b)			241,300		6,867		Torchmark Corp 5.88%										468,309		12,274
State Street Corp 6.00%^(a)			349,700		9,659		WR Berkley Corp 5.63%										1,262,728		32,389
TCF Financial Corp 7.50%^(a)			229,278		6,005		WR Berkley Corp 5.75%										65,930		1,719
US Bancorp 6.00% ^(a),(b)			2,082,309		54,265		XLIT Ltd 3.80%^(a),(b),(d)										76,419		59,607
Valley National Bancorp 6.25%^(a),(b)			172,200		5,088													$	410,286
Wells Fargo & Co 5.85%^(a),(b)			125,027		3,498		Media- 0.22	%
Wells Fargo & Co 6.63%^(a),(b)			236,676		7,254		Comcast Corp 5.00%										480,893		12,830
				$	526,552
Diversified Financial Services - 0.08%							Miscellaneous Manufacturers - 0.17%
Affiliated Managers Group Inc 6.38%			15,188		404		General Electric Co 4.88%										299,666		7,971
Charles Schwab Corp/The 6.00%^(a)			12,535		328		General Electric Co 4.88%										80,187		2,094
Charles Schwab Corp/The 6.00%^(a)			143,663		3,938													$	10,065
				$	4,670		REITS- 4.51		%
							Boston Properties Inc				5.25			%^(a)			7,284		190
Electric - 2.39%
Alabama Power Co 6.45%^(a)			89,000		2,373		Digital Realty Trust Inc 5.88%^(a)										97,818		2,553
							Digital Realty Trust Inc					6.35		%^(a)			202,498		5,599
Dominion Resources Inc/VA 5.25%			892,421		22,890
							Digital Realty Trust Inc					6.63		%^(a)			3,856		101
DTE Energy Co 5.25%			313,300		8,118
							Digital Realty Trust Inc					7.00		%^(a)			544,076		13,787
Duke Energy Corp 5.13%			362,408		9,571
							Digital Realty Trust Inc					7.38		%^(a)			239,911		6,938
Entergy Arkansas Inc 4.88%			10,000		250
							Hospitality Properties Trust 7.13%^(a)										411,113		10,607
Entergy Arkansas Inc 4.90%			241,096		6,088
							Kimco Realty Corp			5.50%^(a)							590,922		15,275
Entergy Arkansas Inc 5.75%			35,363		890
							Kimco Realty Corp			6.00%^(a)							667,508		17,328
Entergy Louisiana LLC 4.70%			165,100		4,185
							National Retail Properties Inc 6.63									%^(a)	455,621		11,728
Entergy Louisiana LLC 4.88%			25,000		625
							Prologis Inc 8.54%^(a)										167,700		11,776
Entergy Louisiana LLC 5.25%			236,055		6,114
							PS Business Parks Inc				5.70			%^(a)			377,419		9,956
Entergy Louisiana LLC 5.88%			1,981		50
							PS Business Parks Inc				5.75			%^(a)			520,724		13,482
Entergy Mississippi Inc 6.00%			70,689		1,800


Schedule of Investments
Preferred Securities Fund
August 31, 2016



	PREFERRED STOCKS (continued)						Shares Held	Value(000			's)			Principal
	REITS (continued)											BONDS (continued)		Amount (000's) Value (000's)
	PS Business Parks Inc 6.00%^(a)						188,128	$		4,957		Banks (continued)
	PS Business Parks Inc 6.45%^(a)						132,228			3,421		BNP Paribas SA (continued)
	Public Storage 5.20%^(a)						70,407			1,849		7.37%, 12/29/2049^(a),(b),(c)	$	100	$	102
	Public Storage 5.75%^(a)						222,900			5,791		7.63%, 12/29/2049^(a),(b),(c)		46,600		49,000
	Public Storage 5.88%^(a)						237,401			6,695		7.63%, 12/29/2049^(a),(b)		4,000		4,206
	Public Storage 5.90%^(a)						55,600			1,431		BPCE SA
	Public Storage 6.00%^(a)						580,214			16,606		5.70%, 10/22/2023^(c)		6,000		6,567
	Public Storage 6.38%^(a)						131,181			3,790		Chase Capital III
	Realty Income Corp 6.63%^(a)						776,752			20,320		1.22%, 03/01/2027^(b)		3,000		2,625
	Regency Centers Corp		6.00%^(a)				441,029			10,998		Citigroup Capital III
	Regency Centers Corp 6.63%^(a)						230,854			5,979		7.63%, 12/01/2036		2,700		3,473
	Senior Housing Properties Trust			5.63%			113,931			2,960		Citigroup Inc
	Senior Housing Properties Trust 6.25%						150,000			3,946		5.90%, 12/29/2049^(a)		200		208
	Ventas Realty LP / Ventas Capital Corp						198,708			5,409		5.95%, 12/29/2049^(a)		24,100		25,064
	5.45	%										6.13%, 12/29/2049^(a),(b)		47,300		49,353
	Vornado Realty Trust 5.40%^(a)						190,622			4,924		6.25%, 12/29/2049^(a),(b)		53,200		57,456
	Vornado Realty Trust		5.70%^(a)				830,753			21,583		Citizens Financial Group Inc
	Vornado Realty Trust 6.63%^(a)						90,192			2,331		5.50%, 12/29/2049^(a),(b)		7,500		7,425
	Vornado Realty Trust 6.88%^(a)						173,159			4,379		CoBank ACB
	Welltower Inc 6.50%^(a)						617,148			16,200		6.25%, 12/29/2049^(a),(b)		12,900		13,981
								$		262,889		Commerzbank AG
	Savings & Loans - 0.05%											8.13%, 09/19/2023^(c)		20,300		23,698
	Astoria Financial Corp		6.50%^(a)				106,851			2,869		Cooperatieve Rabobank UA
												11.00%, 12/29/2049 ^(a),(b)		7,750		9,460
	Sovereign - 0.48%											11.00%, 12/29/2049 ^(a),(b),(c)		69,657		85,025
	Farm Credit Bank of Texas 6.75%^(a),(b)						258,000			27,614		Corestates Capital III
												1.39%, 02/15/2027^(b),(c)		10,200		8,996
	Telecommunications - 4.86%											Countrywide Capital III
	Centaur Funding Corp 0.00%^(b),(c),(e)						26,500			22,608		8.05%, 06/15/2027		6,312		8,043
	Centaur Funding Corp 9.08%^(c),(f)						102,566			121,028		Credit Agricole SA
	Qwest Corp 6.13%						885,400			22,489		7.88%, 12/29/2049^(a),(c)		8,000		8,190
	Qwest Corp 6.88%						258,100			6,871		8.13%, 12/29/2049^(a),(b)		5,000		5,366
	Qwest Corp 7.00%						253,178			6,573		8.13%, 12/29/2049^(a),(b),(c)		11,050		11,858
	Qwest Corp 7.00%						520,255			13,610		8.38%, 12/31/2049^(a),(b),(c)		42,909		48,496
	Qwest Corp 7.50%						949,111			24,240		Credit Suisse AG
	Telephone & Data Systems Inc 6.63				%		224,067			6,023		6.50%, 08/08/2023^(c)		28,300		30,968
	Telephone & Data Systems Inc 6.88				%		2,595			66		Credit Suisse Group AG
	Telephone & Data Systems Inc 7.00				%		1,208,015			30,949		6.25%, 12/29/2049^(a),(b),(c)		39,100		38,269
	United States Cellular Corp 6.95%						110,817			2,869		6.25%, 12/29/2049^(a)		475		465
	Verizon Communications Inc 5.90%						942,517			26,098		7.50%, 12/29/2049^(a),(b)		3,000		3,162
								$		283,424		7.50%, 12/29/2049^(a),(b),(c)		34,040		35,878
	TOTAL PREFERRED STOCKS							$		1,734,914		Dresdner Funding Trust I
												8.15%, 06/30/2031^(c)		26,715		31,744
							Principal
	BONDS- 64.21	%					Amount (000's)	Value(000			's)	8.15%, 06/30/2031		3,200		3,808
	Banks- 36.66	%										Fifth Third Bancorp
												5.10%, 12/29/2049^(a),(b)		5,100		5,049
	ABN AMRO Bank NV
	4.80%, 04/18/2026^(c)					$	7,000		$	7,463		First Chicago NBD Institutional Capital I
	6.25%, 09/13/2022^(b)						10,000			10,450		1.31%, 02/01/2027^(b)		2,300		2,024
	Australia & New Zealand Banking Group											First Union Capital II
	Ltd/United Kingdom											7.95%, 11/15/2029		3,700		4,824
	6.75%, 12/29/2049^(a),(c)						4,000			4,496		Fleet Capital Trust V
												1.65%, 12/18/2028^(b)		2,500		2,178
	BAC Capital Trust XIII
	4.00%, 12/29/2049^(a),(b)						33,564			27,220		Goldman Sachs Group Inc/The
												5.70%, 12/29/2049^(a),(b)		39,795		40,651
	Banco Bilbao Vizcaya Argentaria SA
	9.00%, 05/29/2049^(a)						27,800			29,051		HBOS Capital Funding LP
												6.85%, 03/29/2049^(a)		7,000		7,097
	Banco Santander SA
	6.38%, 05/29/2049^(a),(b)						5,000			4,618		HSBC Capital Funding Dollar1 LP
												10.18%, 12/29/2049 ^(a),(b),(c)		32,900		49,811
	Bank of America Corp
	6.30%, 12/29/2049^(a),(b)						18,500			20,211		HSBC Holdings PLC
	6.50%, 10/29/2049^(a),(b)						50,000			54,505		6.87%, 12/29/2049^(a),(b)		29,600		30,969
	Bank of New York Mellon Corp/The											JPMorgan Chase & Co
	4.62%, 12/29/2049^(a),(b)						13,300			13,317		5.30%, 12/29/2049^(a),(b)		9,800		10,002
	4.95%, 12/29/2049^(a),(b)						75,100			76,696		6.13%, 12/29/2049^(a),(b)		22,000		23,554
												6.75%, 01/29/2049^(a),(b)		137,707		155,294
	Barclays Bank PLC
	7.63%, 11/21/2022						8,000			8,984		JPMorgan Chase Capital XXI
	7.75%, 04/10/2023^(b)						24,200			25,652		1.71%, 02/02/2037^(b)		13,251		10,717
	10.18%, 06/12/2021						3,000			3,845		KeyCorp Capital III
	10.18%, 06/12/2021 ^(c)						3,460			4,434		7.75%, 07/15/2029		3,500		4,164
	Barclays PLC											Lloyds Banking Group PLC
	6.63%, 06/29/2049^(a),(b)						34,178			32,512		6.27%, 11/29/2049^(a),(b),(c)		3,000		2,873
	8.25%, 12/29/2049^(a),(b)						63,158			64,696		6.27%, 11/29/2049^(a),(b)		3,150		3,016
												6.41%, 01/29/2049^(a),(c)		39,174		43,287
	BNP Paribas SA
	7.20%, 06/29/2049^(a),(c)						13,800			15,525		6.66%, 01/29/2049^(a),(c)		60,185		66,805
												7.50%, 04/30/2049^(a),(b)		49,888		50,699


		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Banks (continued)					Electric (continued)
M&T Bank Corp					PPL Capital Funding Inc
6.45%, 12/29/2049^(a),(b)	$	6,615	$	7,376	6.70%, 03/30/2067^(b)	$	15,375	$	13,280
6.88%, 12/29/2049^(a)		37,800		38,036			$		98,630
Morgan Stanley					Hand & Machine Tools - 0.23%
5.55%, 12/29/2049^(a),(b)		11,100		11,377	Stanley Black & Decker Inc
Nordea Bank AB					5.75%, 12/15/2053		12,250		13,126
5.50%, 09/29/2049^(a),(b),(c)		6,000		6,007
5.50%, 09/29/2049^(a),(b)		1,200		1,201	Insurance - 19.12%
6.13%, 12/29/2049^(a),(b)		1,800		1,791	ACE Capital Trust II
6.13%, 12/29/2049^(a),(b),(c)		32,831		32,667	9.70%, 04/01/2030		18,970		28,740
Northern Trust Corp					Aegon NV
4.60%, 12/29/2049^(a),(b)		4,400		4,493	1.43%, 07/29/2049^(a),(b)		11,889		7,643
PNC Financial Services Group Inc/The					AIG Life Holdings Inc
6.75%, 07/29/2049^(a),(b)		44,035		49,705	8.50%, 07/01/2030		30,200		38,279
Royal Bank of Scotland Group PLC					Allstate Corp/The
4.80%, 04/05/2026		7,500		7,854	5.75%, 08/15/2053^(b)		7,600		8,208
7.50%, 12/29/2049^(a),(b)		45,281		42,904	6.50%, 05/15/2067		12,505		14,443
7.64%, 03/29/2049^(a),(b)		1,900		1,869	American International Group Inc
7.65%, 08/29/2049^(a),(b)		34,315		41,178	8.18%, 05/15/2068		1,500		1,965
8.00%, 12/29/2049^(a),(b)		9,825		9,508	Aon Corp
8.62%, 12/29/2049^(a),(b)		3,000		3,056	8.21%, 01/01/2027		4,500		5,974
Skandinaviska Enskilda Banken AB					AXA SA
5.75%, 11/29/2049^(a),(b)		13,800		13,801	1.43%, 08/29/2049^(b)		9,295		6,516
Societe Generale SA					6.38%, 12/29/2049^(a),(b),(c)		27,793		30,294
1.40%, 12/29/2049^(a),(b),(c)		5,750		5,477	8.60%, 12/15/2030		13,565		19,045
7.88%, 12/29/2049^(a),(b),(c)		3,000		2,982	Catlin Insurance Co Ltd
7.88%, 12/29/2049^(a),(b)		15,000		14,910	7.25%, 07/29/2049^(a),(c)		52,586		40,491
8.00%, 12/29/2049^(a),(b),(c)		16,800		17,115	Chubb Corp/The
8.25%, 09/29/2049^(a),(b)		64,750		66,612	6.38%, 03/29/2067^(b)		44,690		41,757
Standard Chartered PLC					Dai-ichi Life Insurance Co Ltd/The
7.01%, 07/29/2049^(a),(c)		14,300		15,694	5.10%, 10/29/2049^(a),(b),(c)		12,300		13,530
7.50%, 12/29/2049^(a),(b),(c)		12,700		12,687	7.25%, 12/29/2049^(a),(c)		13,250		15,801
SunTrust Capital I					Demeter Investments BV for Swiss Re Ltd
1.49%, 05/15/2027^(b)		20,900		17,243	5.63%, 08/15/2052		16,800		17,984
Svenska Handelsbanken AB					Everest Reinsurance Holdings Inc
5.25%, 12/29/2049^(a),(b)		22,500		22,388	6.60%, 05/01/2067^(b)		34,120		27,722
Swedbank AB					Glen Meadow Pass-Through Trust
5.50%, 12/29/2049^(a),(b)		5,200		5,330	6.51%, 02/12/2067^(b),(c)		10,885		8,218
UBS AG/Stamford CT					Great-West Life & Annuity Insurance Capital
7.63%, 08/17/2022		10,000		11,716	LP
UBS Group AG					6.63%, 11/15/2034^(c)		7,000		8,306
6.87%, 12/29/2049^(a),(b)		18,078		18,236	Great-West Life & Annuity Insurance Capital
6.88%, 12/29/2049^(a),(b)		13,100		13,017	LP II
7.00%, 12/29/2049^(a),(b)		12,000		12,795	3.36%, 05/16/2046^(b),(c)		8,750		7,481
7.13%, 12/29/2049^(a)		1,757		1,807	Hartford Financial Services Group Inc/The
US Bancorp					8.13%, 06/15/2068^(b)		11,772		12,861
5.12%, 12/29/2049^(a),(b)		21,400		22,738	Liberty Mutual Group Inc
Wells Fargo & Co					7.00%, 03/07/2067^(b),(c)		17,738		14,811
5.87%, 12/29/2049^(a),(b)		47,800		52,793	7.80%, 03/07/2087^(c)		61,373		71,193
7.98%, 12/31/2049^(a),(b)		57,100		60,383	Liberty Mutual Insurance Co
		$		2,136,321	7.70%, 10/15/2097^(c)		20,025		26,724
Diversified Financial Services - 1.03%					Lincoln National Corp
Charles Schwab Corp/The					3.16%, 05/17/2066^(b)		13,109		10,192
7.00%, 02/28/2049^(a),(b)		27,158		31,367	6.05%, 04/20/2067^(b)		54,947		42,045
Depository Trust & Clearing Corp/The					Meiji Yasuda Life Insurance Co
4.88%, 12/29/2049^(a),(b),(c)		4,000		4,090	5.20%, 10/20/2045^(b),(c)		10,000		11,400
MBNA Capital B					MetLife Capital Trust IV
1.56%, 02/01/2027^(b)		2,500		2,178	7.88%, 12/15/2067^(c)		19,020		23,870
National Rural Utilities Cooperative Finance					MetLife Capital Trust X
Corp					9.25%, 04/08/2068^(c)		41,075		58,720
5.25%, 04/20/2046^(b)		21,300		22,486	MetLife Inc
		$		60,121	5.25%, 12/29/2049^(a),(b)		17,200		17,297
Electric - 1.69%					6.40%, 12/15/2066^(b)		11,400		12,802
Emera Inc					10.75%, 08/01/2069		28,223		45,439
6.75%, 06/15/2076^(b)		33,400		36,114	Mitsui Sumitomo Insurance Co Ltd
Integrys Holding Inc					7.00%, 03/15/2072^(c)		10,700		12,947
6.11%, 12/01/2066^(b)		13,082		10,973	MMI Capital Trust I
NextEra Energy Capital Holdings Inc					7.63%, 12/15/2027		1,073		1,377
6.35%, 10/01/2066^(b)		23,474		18,955	Nationwide Financial Services Inc
6.65%, 06/15/2067^(b)		2,000		1,670	6.75%, 05/15/2087		71,215		75,132
7.30%, 09/01/2067^(b)		17,750		17,638	Nippon Life Insurance Co
					4.70%, 01/20/2046^(b),(c)		5,000		5,488
					5.10%, 10/16/2044^(b),(c)		14,900		16,613


			Principal			Portfolio Summary (unaudited)
BONDS (continued)			Amount (000's) Value (000's)			Sector	Percent
Insurance (continued)						Financial	79.39	%
Provident Financing Trust I						Communications	5.20	%
7.41%, 03/15/2038		$	37,750	$	42,199	Industrial	4.76	%
Prudential Financial Inc						Utilities	4.08	%
5.63%, 06/15/2043^(b)			66,965		71,820	Investment Companies	2.87	%
5.88%, 09/15/2042^(b)			11,675		12,930	Energy	1.50	%
Prudential PLC						Government	0.48	%
7.75%, 01/29/2049^(a)			4,800		4,903	Consumer, Non-cyclical	0.43	%
Reinsurance Group of America Inc						Purchased Options	0.12	%
3.32%, 12/15/2065^(b)			26,423		19,949	Other Assets and Liabilities	1.17	%
Sompo Japan Nipponkoa Insurance Inc						TOTAL NET ASSETS	100.00	%
5.33%, 03/28/2073^(b),(c)			60,300		67,838
Sumitomo Life Insurance Co
6.50%, 09/20/2073^(b),(c)			15,500		18,561
Voya Financial Inc
5.65%, 05/15/2053^(b)			64,126		64,126
XLIT Ltd
6.50%, 12/31/2049^(a),(b)			14,350		10,741
			$		1,114,375
Miscellaneous Manufacturers - 3.10%
General Electric Co
5.00%, 12/29/2049^(a),(b)			168,649		180,876

Pipelines - 1.50%
Enterprise Products Operating LLC
7.03%, 01/15/2068^(b)			55,775		59,337
TransCanada PipeLines Ltd
6.35%, 05/15/2067^(b)			8,461		6,769
Transcanada Trust
5.63%, 05/20/2075^(b)			3,800		3,771
5.87%, 08/15/2076^(b)			16,200		17,263
			$		87,140
Telecommunications - 0.12%
Koninklijke KPN NV
7.00%, 03/28/2073^(b),(c)			6,550		7,213

Transportation - 0.76%
BNSF Funding Trust I
6.61%, 12/15/2055^(b)			38,509		44,389

TOTAL BONDS			$		3,742,191
			Principal
CONVERTIBLE BONDS - 0.44%			Amount (000's) Value (000's)
Banks- 0.44	%
ING Groep NV
6.50%, 12/29/2049^(a),(b)			26,000		25,464

TOTAL CONVERTIBLE BONDS			$		25,464
TOTAL PURCHASED OPTIONS - 0.12%			$		7,169
Total Investments			$		5,759,668
Other Assets and Liabilities - 1.17%			$		68,002
TOTAL NET ASSETS - 100.00%			$		5,827,670


					Schedule of Investments
Preferred Securities Fund
August 31, 2016




August 31,			August 31,													August 31,		August 31,
Affiliated Securities	2015		2015			Purchases			Purchases		Sales			Sales		2016		2016
Shares			Cost			Shares			Cost		Shares			Proceeds		Shares		Cost
Centaur Funding Corp 9.08%	71,576	$	85,034			30,990		$	36,865		—		$	—		102,566	$	121,899
	$		85,034					$	36,865				$	–		$		121,899


									Realized Gain/Loss							Realized Gain from
			Income						on Investments					Capital Gain Distributions
Centaur Funding Corp 9.08%	$			9,081			$				—			$				—
	$			9,081		$					—			$				—
Amounts in thousands except shares


Options

										Upfront Premiums						Unrealized
Purchased Options Outstanding	Exercise Price			Expiration Date				Contracts		Paid/(Received)				Fair Value		Appreciation/(Depreciation)
Put - US Long Bond Future; December 2016	$		169.00		09/26/2016				6,200	$	12,423		$	7,169		$		(5,254	)
Total										$	12,423		$	7,169		$		(5,254	)

										Upfront Premiums						Unrealized
Written Options Outstanding	Exercise Price			Expiration Date				Contracts		Paid/(Received)				Fair Value		Appreciation/(Depreciation)
Put - US Long Bond Future; December 2016	$		165.00		09/26/2016				6,200	$	(4,386	)	$	(2,034	)	$		2,352
Total										$	(4,386	)	$	(2,034	)	$		2,352

Amounts in thousands except contracts


Schedule of Investments
Real Estate Allocation Fund
August 31, 2016



INVESTMENT COMPANIES - 101.35%	Shares Held				Value
Principal Funds, Inc. Institutional Class - 101.35%
Global Real Estate Securities Fund ^(a)		47,961		$	460,422
Real Estate Debt Income Fund ^(a)		47,645			470,256
			$		930,678
TOTAL INVESTMENT COMPANIES			$		930,678
Total Investments			$		930,678
Other Assets and Liabilities - (1.35)%			$		(12,416	)
TOTAL NET ASSETS - 100.00%			$		918,262


(a) Affiliated Security. Please see Affiliated Sub-Schedule for transactional
information.


Portfolio Summary (unaudited)
Fund Type					Percent
Fixed Income Funds					51.21	%
International Equity Funds					50.14	%
Other Assets and Liabilities					(1.35	)%
TOTAL NET ASSETS					100.00	%



August 31,		August 31,										August 31,		August 31,
Affiliated Securities	2015		2015		Purchases			Purchases	Sales		Sales	2016		2016
Shares			Cost		Shares			Cost	Shares		Proceeds	Shares		Cost
Global Real Estate Securities Fund	20,381	$	193,364		54,122		$	490,184	26,542	$	245,539	47,961	$	438,790
Real Estate Debt Income Fund	14,683		146,149		54,032			521,092	21,070		203,599	47,645		463,564
		$	339,513				$	1,011,276		$	449,138		$	902,354


Schedule of Investments
Real Estate Debt Income Fund
August 31, 2016



	INVESTMENT COMPANIES - 1.12%		Shares Held		Value(000			's)				Principal
	Money Market Funds - 1.12%									BONDS (continued)		Amount (000's) Value (000's)
	First American Government Obligations Fund			1,731,291	$		1,731			Commercial Mortgage Backed Securities (continued)
										GS Mortgage Securities Trust 2015-GC34
	TOTAL INVESTMENT COMPANIES				$		1,731			3.51%, 10/10/2048^(a)		$	5,000	$	5,424
			Principal							4.47%, 10/10/2048			2,000		2,242
	BONDS- 98.39	%	Amount (000's)		Value(000			's)		GS Mortgage Securities Trust 2016-GS2
	Commercial Mortgage Backed Securities - 93.03%									3.76%, 05/10/2049			2,500		2,732
	Banc of America Commercial Mortgage Trust									JP Morgan Chase Commercial Mortgage
	2008-1									Securities Trust 2010-C1
	6.48%, 02/10/2051^(a)		$	1,800		$	1,787			5.95%, 06/15/2043^(b)			1,500		1,628
	6.48%, 02/10/2051^(a),(b)			1,000			934			JP Morgan Chase Commercial Mortgage
										Securities Trust 2011-C5
	Banc of America Commercial Mortgage Trust									5.51%, 08/15/2046^(a),(b)			1,200		1,325
	2015-UB	S7
	4.51%, 09/15/2048^(a)			1,080			1,217			JP Morgan Chase Commercial Mortgage
	Banc of America Commercial Mortgage Trust									Securities Trust 2016-JP2
	2016-UBS10									3.46%, 08/15/2049			1,000		1,053
	2.18%, 06/15/2049^(a),(c)			9,089			1,167			JPMBB Commercial Mortgage Securities
	5.08%, 06/15/2049^(a)			3,500			3,738			Trust 2013-C12
										4.22%, 07/15/2045^(a)			460		411
	CFCRE Commercial Mortgage Trust 2011-
	C2									JPMBB Commercial Mortgage Securities
	1.92%, 12/15/2047^(a),(b),(c)			12,924			413			Trust 2014-C21
										1.26%, 08/15/2047^(a),(c)			25,616		1,626
	Citigroup Commercial Mortgage Trust 2013-
	GC15									JPMBB Commercial Mortgage Securities
	5.27%, 09/10/2046^(a),(b)			2,010			1,875			Trust 2014-C24
										4.07%, 11/15/2047^(a),(b)			1,000		791

	Citigroup Commercial Mortgage Trust 2015-									4.12%, 11/15/2047^(a)			2,500		2,754
	GC27
	3.14%, 02/10/2048^(a)			2,000			2,108			LB Commercial Mortgage Trust 2007-C3
										6.11%, 07/15/2044^(a)			2,000		1,969
	Citigroup Commercial Mortgage Trust 2016-
	C1								ML	-CFC Commercial Mortgage Trust 2006-
	2.12%, 05/10/2049^(a),(c)			28,938			4,036			3
										5.48%, 07/12/2046^(a)			1,290		1,279
	3.51%, 05/10/2049			2,500			2,647
	4.12%, 05/10/2049			2,500			2,746			Morgan Stanley Bank of America Merrill
										Lynch Trust 2013-C13
	Citigroup Commercial Mortgage Trust 2016-									5.05%, 11/15/2046^(a)			4,000		4,420
	GC36
	3.62%, 02/10/2049			5,000			5,485			Morgan Stanley Bank of America Merrill
										Lynch Trust 2013-C9
	COMM 2006-C8 Mortgage Trust									4.29%, 05/15/2046^(a),(b)			3,000		2,841
	5.38%, 12/10/2046			2,000			1,938
	COMM 2012-CCRE4 Mortgage Trust									Morgan Stanley Bank of America Merrill
	3.25%, 10/15/2045			3,000			3,167			Lynch Trust 2014-C14
										1.42%, 02/15/2047^(a),(c)			20,844		1,073
	COMM 2013-CCRE11 Mortgage Trust
	1.20%, 10/10/2046^(a),(c)			26,060			1,493			Morgan Stanley Bank of America Merrill
	COMM 2013-CCRE6 Mortgage Trust									Lynch Trust 2014-C15
	1.62%, 03/10/2046^(a),(c)			14,807			633			5.06%, 04/15/2047^(a)			1,000		1,087
	COMM 2014-CCRE17 Mortgage Trust									Morgan Stanley Bank of America Merrill
	4.96%, 05/10/2047^(a),(b)			1,000			927			Lynch Trust 2015-C20
										4.16%, 02/15/2048^(a)			1,000		1,073
	Comm 2014-UBS2 Mortgage Trust
	4.20%, 03/10/2047			1,000			1,099			Morgan Stanley Bank of America Merrill
	COMM 2014-UBS3 Mortgage Trust									Lynch Trust 2015-C25
	4.94%, 06/10/2047^(a)			1,000			1,019			1.30%, 10/15/2048^(a),(c)			29,871		2,253
	COMM 2015-LC19 Mortgage Trust									Morgan Stanley Bank of America Merrill
	2.87%, 02/10/2048^(a),(b)			1,000			781			Lynch Trust 2015-C26
	COMM 2015-LC23 Mortgage Trust									3.53%, 10/15/2048			1,000		1,091
	4.80%, 10/10/2053^(a)			1,000			1,054			Morgan Stanley Bank of America Merrill
	COMM 2016-DC2 Mortgage Trust									Lynch Trust 2016-C28
	3.77%, 02/10/2049			6,000			6,635			3.95%, 01/15/2049			6,000		6,602
	Commercial Mortgage Trust 2007-GG9									Morgan Stanley Capital I Trust 2016-UBS9
	5.51%, 03/10/2039			3,000			2,768			4.70%, 03/15/2049			500		529
	Credit Suisse Commercial Mortgage Trust									UBS-Barclays Commercial Mortgage Trust
	Series 2007-C1									2012	-C4
										1.92%, 12/10/2045^(a),(b),(c)			9,382		729
	5.42%, 02/15/2040			3,000			2,982
										4.65%, 12/10/2045^(a),(b)			1,000		990
	FHLMC Multifamily Structured Pass Through
	Certificates									Wachovia Bank Commercial Mortgage Trust
	1.29%, 01/25/2021^(a),(c)			20,172			836			Series 2006-C29
	3.01%, 07/25/2025			5,000			5,383			5.37%, 11/15/2048			2,000		1,991
	3.15%, 11/25/2025^(a)			1,500			1,633			Wachovia Bank Commercial Mortgage Trust
	3.28%, 06/25/2025^(a)			5,000			5,488			Series 2007-C30
	3.33%, 08/25/2025^(a)			4,000			4,411			5.41%, 12/15/2043^(a)			4,000		4,008
	GS Mortgage Securities Trust 2010-C1									Wells Fargo Commercial Mortgage Trust
	1.58%, 08/10/2043^(a),(b),(c)			25,702			1,180			2015	-C31
	GS Mortgage Securities Trust 2011-GC3									3.70%, 11/15/2048			2,000		2,200
	0.84%, 03/10/2044^(a),(b),(c)			24,312			596			Wells Fargo Commercial Mortgage Trust
	GS Mortgage Securities Trust 2013-GCJ14									2015-NX	S1
	4.93%, 08/10/2046^(a),(b)			1,500			1,375			4.24%, 05/15/2048^(a)			3,180		2,629
	GS Mortgage Securities Trust 2014-GC22
	4.80%, 06/10/2047^(a)			3,110			3,334
	See accompanying notes.									175


COMMON STOCKS - 97.23%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 1.24%					Housewares - 0.76%
Harris Corp	305,935	$	28,446		Tupperware Brands Corp	265,785	$	17,417

Airlines - 1.18%					Insurance - 6.15%
Alaska Air Group Inc	400,498		27,046		Allied World Assurance Co Holdings AG	574,007		23,282
					AmTrust Financial Services Inc	2,026,483		53,681
Automobile Manufacturers - 1.63%					Arthur J Gallagher & Co	446,826		22,078
New Flyer Industries Inc	1,162,265		37,445		Validus Holdings Ltd	824,217		41,862
							$	140,903
Automobile Parts & Equipment - 0.89%					Investment Companies - 3.02%
Autoliv Inc	191,477		20,331		Ares Capital Corp	2,604,759		42,093
					Oaktree Capital Group LLC	613,904		26,993
Banks - 8.87%							$	69,086
Bank of the Ozarks Inc	1,090,090		42,710		Machinery - Diversified - 4.60%
BOK Financial Corp	324,304		22,399		Applied Industrial Technologies Inc	670,246		31,850
Cullen/Frost Bankers Inc	607,861		44,313		Flowserve Corp	459,701		22,236
PacWest Bancorp	1,171,714		50,747		IDEX Corp	259,644		24,261
Umpqua Holdings Corp	1,199,090		19,689		Nordson Corp	273,234		26,976
Washington Trust Bancorp Inc	554,964		23,392				$	105,323
		$	203,250		Media - 2.17%
Chemicals - 4.06%					Sinclair Broadcast Group Inc	1,745,881		49,723
Albemarle Corp	359,974		28,787
Cabot Corp	206,990		10,321		Miscellaneous Manufacturers - 2.13%
Huntsman Corp	2,083,689		36,027		Crane Co	553,538		35,604
RPM International Inc	326,040		17,779		Donaldson Co Inc	354,330		13,305
		$	92,914				$	48,909
Coal - 1.13%					Oil & Gas - 2.64%
Alliance Resource Partners LP	1,269,976		25,895		Helmerich & Payne Inc	113,951		6,889
					HollyFrontier Corp	1,134,524		29,362
Computers - 1.08%					Vermilion Energy Inc	669,984		24,211
Leidos Holdings Inc	608,339		24,644				$	60,462
					Oil & Gas Services - 1.34%
Diversified Financial Services - 1.85%					Targa Resources Corp	703,671		30,666
BGC Partners Inc	2,100,528		18,422
FNF Group	637,546		24,029		Packaging & Containers - 1.04%
		$	42,451		Packaging Corp of America	303,177		23,839
Electric - 5.67%
ALLETE Inc	465,108		27,581		Pipelines - 1.69%
Alliant Energy Corp	920,114		34,918		EnLink Midstream Partners LP	2,199,582		38,823
Great Plains Energy Inc	944,362		25,649
ITC Holdings Corp	585,254		26,465		Private Equity - 0.91%
PNM Resources Inc	479,836		15,254		Hercules Capital Inc	1,526,193		20,848
		$	129,867
Electrical Components & Equipment - 1.87%					REITS - 17.08%
Hubbell Inc	157,813		17,093		Agree Realty Corp	375,540		18,022
Littelfuse Inc	202,825		25,718		Alexandria Real Estate Equities Inc	236,719		26,060
		$	42,811		Colony Capital Inc	3,004,578		55,495
Electronics - 2.20%					CYS Investments Inc	395,503		3,484
Avnet Inc	822,323		34,275		EastGroup Properties Inc	325,316		23,872
Garmin Ltd	326,760		16,037		EPR Properties	623,769		48,854
		$	50,312		GEO Group Inc/The	815,111		16,335
Environmental Control - 1.34%					Gramercy Property Trust	4,289,352		41,521
MSA Safety Inc	528,126		30,763		LaSalle Hotel Properties	932,361		26,162
					Medical Properties Trust Inc	3,040,287		46,425
Food - 2.55%					Omega Healthcare Investors Inc	1,420,507		51,422
B&G Foods Inc	834,036		39,600		Pebblebrook Hotel Trust	1,121,926		33,703
Ingredion Inc	137,613		18,847				$	391,355
		$	58,447		Retail - 1.09%
Gas - 0.97%					Nordstrom Inc	494,978		24,977
Vectren Corp	455,884		22,297
					Semiconductors - 2.60%
Hand & Machine Tools - 2.06%					Maxim Integrated Products Inc	505,548		20,586
Lincoln Electric Holdings Inc	358,905		22,812		Microchip Technology Inc	628,617		38,918
Snap-on Inc	159,369		24,430				$	59,504
		$	47,242		Software - 2.63%
Healthcare - Products - 2.62%					Broadridge Financial Solutions Inc	321,162		22,256
STERIS PLC	481,466		34,030		j2 Global Inc	557,776		38,024
Teleflex Inc	141,714		25,946				$	60,280
		$	59,976		Supranational Bank - 1.82%
Home Furnishings - 2.27%					Banco Latinoamericano de Comercio Exterior	1,446,712		41,795
Harman International Industries Inc	614,693		52,058		SA

Currency Abbreviations

ARS

AUD

BRL

CAD

CHF

CLP

CNY

COP

CZK

DKK

EUR

GBP

HKD

HUF

IDR

ILS

INR

JPY

KRW

MXN

MYR

NOK

NZD

PHP

PLN

RUB

SEK

SGD

TRY

TWD

USD/$

ZAR

Argentine Peso

Australian Dollar

Brazilian Real

Canadian Dollar

Swiss Franc

Chilean Peso

Chinese Renminbi

Colombian Peso

Czech Koruna

Danish Krone

Euro

British Pound Sterling

Hong Kong Dollar

Hungarian Forint

Indonesian Rupiah

Israeli New Shekel

Indian Rupee

Japanese Yen

South Korean Won

Mexican Peso

Malaysian Ringgit

Norwegian Krone

New Zealand Dollar

Philippine Peso

Polish Zloty

Russian Rouble

Swedish Krona

Singapore Dollar

Turkish Lira

New Taiwan Dollar

United States Dollar

South African Rand


							FINANCIAL HIGHLIGHTS
							PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended August 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
BLUE CHIP FUND
Class A shares
2016		$	15.52	($0.04	)	$	1.69		$	1.65		($0.01	)	($0.31	)	($0.32	)	$	16.85
2015			15.07	(0.01	)		0.86			0.85		(0.02	)	(0.38	)	(0.40	)		15.52
2014	(d)		12.93	0.03			2.14			2.17		(0.03	)	–		(0.03	)		15.07
Class C shares
2016			15.33	(0.16	)		1.66			1.50		–		(0.31	)	(0.31	)		16.52
2015			14.97	(0.12	)		0.86			0.74		–		(0.38	)	(0.38	)		15.33
2014	(d)		12.93	(0.07	)		2.13			2.06		(0.02	)	–		(0.02	)		14.97
Class P shares
2016			15.62	0.02			1.70			1.72		(0.06	)	(0.31	)	(0.37	)		16.97
2015			15.13	0.08			0.85			0.93		(0.06	)	(0.38	)	(0.44	)		15.62
2014	(d)		12.93	0.10			2.14			2.24		(0.04	)	–		(0.04	)		15.13
CREDIT OPPORTUNITIES EXPLORER FUND
Class A shares
2016			9.36	0.29			0.12			0.41		(0.27	)	–		(0.27	)		9.50
2015	(g)		10.00	0.35			(0.65	)		(0.30	)	(0.34	)	–		(0.34	)		9.36
DIVERSIFIED REAL ASSET FUND
Class A shares
2016			11.22	0.17			(0.27	)		(0.10	)	(0.05	)	–		(0.05	)		11.07
2015			13.18	0.13			(1.88	)		(1.75	)	(0.08	)	(0.13	)	(0.21	)		11.22
2014			11.72	0.16			1.45			1.61		(0.04	)	(0.11	)	(0.15	)		13.18
2013			11.91	0.15			0.07			0.22		(0.11	)	(0.30	)	(0.41	)		11.72
2012			11.82	0.10			0.30			0.40		(0.03	)	(0.28	)	(0.31	)		11.91
Class C shares
2016			10.98	0.09			(0.27	)		(0.18	)	–		–		–			10.80
2015			12.91	0.04			(1.84	)		(1.80	)	–		(0.13	)	(0.13	)		10.98
2014			11.55	0.07			1.42			1.49		(0.02	)	(0.11	)	(0.13	)		12.91
2013			11.75	0.06			0.07			0.13		(0.03	)	(0.30	)	(0.33	)		11.55
2012			11.72	0.01			0.30			0.31		–		(0.28	)	(0.28	)		11.75
Class P shares
2016			11.21	0.19			(0.26	)		(0.07	)	(0.09	)	–		(0.09	)		11.05
2015			13.16	0.16			(1.87	)		(1.71	)	(0.11	)	(0.13	)	(0.24	)		11.21
2014			11.78	0.20			1.44			1.64		(0.15	)	(0.11	)	(0.26	)		13.16
2013			11.96	0.18			0.07			0.25		(0.13	)	(0.30	)	(0.43	)		11.78
2012			11.85	0.12			0.31			0.43		(0.04	)	(0.28	)	(0.32	)		11.96


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



				Ratio of				Ratio of Net
				Expenses to		Ratio of Gross		Investment Income
			Net Assets, End of	Average Net		Expenses to Average		to Average Net		Portfolio
Total Return(b)			Period (in thousands)	Assets		Net Assets		Assets		Turnover Rate


10.77	%	$	36,575	1.28	%	1.28	%(c)	(0.26	)%	36.4	%
5.78			20,629	1.35		1.39	(c)	(0.04	)	26.2
16.83	(e)		8,637	1.35	(f)	1.95 (c)	,(f)	0.25	(f)	34.4	(f)

9.93			21,705	2.08		2.08	(c)	(1.06	)	36.4
5.04			11,985	2.10		2.33	(c)	(0.77	)	26.2
15.99	(e)		3,321	2.10	(f)	4.22 (c)	,(f)	(0.51	) (f)	34.4	(f)

11.21			17,494	0.87		0.87	(c)	0.15		36.4
6.25			6,905	0.89		1.41	(c)	0.53		26.2
17.36	(e)		2,176	0.90	(f)	3.24 (c)	,(f)	0.75	(f)	34.4	(f)


4.51			9,669	1.10		1.37	(c)	3.20		618.9
(3.03	) (e)		9,459	1.10	(f)	1.39 (c)	,(f)	3.72	(f)	406.0	(f)


(0.85	)		210,864	1.25		1.28	(c)	1.59		77.6
(13.33	)		109,677	1.25		1.25	(c)	1.06		66.4
13.91			127,019	1.25		1.27	(c)	1.31		67.3
1.89			281,607	1.25		1.47	(c)	1.25		78.7
3.53			246,133	1.25		1.44	(c)	0.86		107.3

(1.55	) (h)		31,350	2.00		2.12	(c)	0.86		77.6
(13.98	)		45,514	2.00		2.04	(c)	0.30		66.4
13.07			55,741	2.00		2.04	(c)	0.57		67.3
1.10			49,372	2.00		2.04	(c)	0.51		78.7
2.80			42,133	2.00		2.13	(c)	0.07		107.3

(0.60	)		149,921	1.01		1.14	(c)	1.78		77.6
(13.08	)		396,768	1.01		1.06	(c)	1.36		66.4
14.20			314,063	1.02		1.13	(c)	1.59		67.3
2.14			60,294	0.99		0.99	(c)	1.51		78.7
3.78			39,474	1.04		1.13	(c)	1.05		107.3

Selected data for a share of Capital Stock outstanding throughout each year ended August 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
DYNAMIC HIGH YIELD EXPLORER FUND
Class A shares
2016		$	9.39	$	0.44		($0.21	)	$	0.23		($0.48	)	$–		($0.48	)	$	9.14
2015	(e)		10.00		0.40		(0.61	)		(0.21	)	(0.40	)	–		(0.40	)		9.39
GLOBAL MULTI-STRATEGY FUND
Class A shares
2016			10.91		0.01		0.14			0.15		(0.06	)	(0.23	)	(0.29	)		10.77
2015			11.04		(0.06	)	0.16			0.10		(0.06	)	(0.17	)	(0.23	)		10.91
2014			10.47		(0.04	)	0.70			0.66		(0.01	)	(0.08	)	(0.09	)		11.04
2013			10.32		–		0.29			0.29		–		(0.14	)	(0.14	)		10.47
2012	(i)		10.00		(0.04	)	0.36			0.32		–		–		–			10.32
Class C shares
2016			10.73		(0.07	)	0.13			0.06		–		(0.23	)	(0.23	)		10.56
2015			10.90		(0.15	)	0.15			–		–		(0.17	)	(0.17	)		10.73
2014			10.40		(0.12	)	0.70			0.58		–		(0.08	)	(0.08	)		10.90
2013			10.33		(0.08	)	0.29			0.21		–		(0.14	)	(0.14	)		10.40
2012	(j)		10.18		(0.02	)	0.17			0.15		–		–		–			10.33
Class P shares
2016			10.95		0.04		0.14			0.18		(0.08	)	(0.23	)	(0.31	)		10.82
2015			11.09		(0.04	)	0.16			0.12		(0.09	)	(0.17	)	(0.26	)		10.95
2014			10.51		(0.01	)	0.70			0.69		(0.03	)	(0.08	)	(0.11	)		11.09
2013			10.34		0.02		0.29			0.31		–		(0.14	)	(0.14	)		10.51
2012	(i)		10.00		(0.02	)	0.36			0.34		–		–		–			10.34


Ratio of Expenses to
						Average Net Assets
						(Excluding
						Dividends and
						Interest Expense on
				Ratio of		Short Sales, Short				Ratio of Net
				Expenses to		Sale Fees and		Ratio of Gross		Investment Income
			Net Assets, End of	Average Net		Reverse Repurchase		Expenses to Average		to Average Net		Portfolio
Total Return(b)			Period (in thousands)	Assets		Agreement Expense)		Net Assets		Assets		Turnover Rate


2.51	%(c)	$	7,267	1.10	%	N/A		1.67	%(d)	4.88	%	112.8	%
(2.00) (c),(f)			7,752	1.10	(g)	N/A		1.69 (d)	,(g)	4.24	(g)	94.0	(g)


1.41			145,370	2.41		1.94	% (h)	2.41	(d)	0.11		233.9
0.93			183,527	2.39		1.95	(h)	2.39	(d)	(0.55	)	142.5
6.37			93,900	2.54		2.00	(h)	2.57	(d)	(0.36	)	166.4
2.85			100,180	2.61		2.00	(h)	2.74	(d)	(0.07	)	135.6
3.20	(f)		8,465	2.70	(g)	2.00 (g)	,(h)	3.62 (d)	,(g)	(0.45	) (g)	196.0	(g)

0.61			56,557	3.22		2.75	(h)	3.24	(d)	(0.68	)	233.9
0.05			60,317	3.19		2.75	(h)	3.21	(d)	(1.37	)	142.5
5.64			42,783	3.29		2.75	(h)	3.38	(d)	(1.11	)	166.4
2.07			21,035	3.36		2.75	(h)	3.65	(d)	(0.82	)	135.6
1.47	(f)		1,529	3.30	(g)	2.75 (g)	,(h)	30.56 (d)	,(g)	(0.83	) (g)	196.0	(g)

1.74			286,895	2.18		1.71	(h)	2.18	(d)	0.37		233.9
1.15			282,957	2.16		1.72	(h)	2.16	(d)	(0.33	)	142.5
6.62			211,335	2.30		1.76	(h)	2.30	(d)	(0.12	)	166.4
3.04			66,419	2.40		1.79	(h)	2.49	(d)	0.08		135.6
3.40	(f)		707	2.50	(g)	1.80 (g)	,(h)	12.80 (d)	,(g)	(0.19	) (g)	196.0	(g)

Selected data for a share of Capital Stock outstanding throughout each year ended August 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 OPPORTUNITIES EQUITY HEDGED FUND
Class A shares
2016	(c)	$	10.00	$	0.07		($0.94	)	($0.87	)	($0.01	)	$–		($0.01	)	$	9.12
Class P shares
2016	(c)		10.00		0.09		(0.94	)	(0.85	)	(0.01	)	–		(0.01	)		9.14
GLOBAL OPPORTUNITIES FUND
Class A shares
2016			11.36		0.10		0.18		0.28		(0.09	)	(0.10	)	(0.19	)		11.45
2015			13.20		0.10		(0.67	)	(0.57	)	(0.06	)	(1.21	)	(1.27	)		11.36
2014	(g)		11.45		0.07		1.74		1.81		(0.06	)	–		(0.06	)		13.20
Class C shares
2016			11.25		0.02		0.18		0.20		(0.01	)	(0.10	)	(0.11	)		11.34
2015			13.12		–		(0.66	)	(0.66	)	–		(1.21	)	(1.21	)		11.25
2014	(g)		11.45		(0.01	)	1.74		1.73		(0.06	)	–		(0.06	)		13.12
Class P shares
2016			11.42		0.12		0.22		0.34		(0.13	)	(0.10	)	(0.23	)		11.53
2015			13.25		0.17		(0.67	)	(0.50	)	(0.12	)	(1.21	)	(1.33	)		11.42
2014	(g)		11.45		0.11		1.76		1.87		(0.07	)	–		(0.07	)		13.25
INTERNATIONAL SMALL COMPANY FUND
Class A shares
2016			9.59		0.06		0.27		0.33		(0.12	)	–		(0.12	)		9.80
2015			9.86		0.06		(0.28	)	(0.22	)	(0.05	)	–		(0.05	)		9.59
2014	(h)		10.00		(0.01	)	(0.13	)	(0.14	)	–		–		–			9.86
Class P shares
2016			9.63		0.09		0.20		0.29		(0.12	)	–		(0.12	)		9.80
2015			9.87		0.09		(0.28	)	(0.19	)	(0.05	)	–		(0.05	)		9.63
2014	(h)		10.00		–		(0.13	)	(0.13	)	–		–		–			9.87


							FINANCIAL HIGHLIGHTS
							PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended August 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
MULTI-MANAGER EQUITY LONG/SHORT FUND
Class A shares
2016	(c)	$	10.00	($0.05	)	$	0.02		($0.03	)	$–		$–		$–		$	9.97
Class P shares
2016	(c)		10.00	(0.05	)		0.03		(0.02	)	–		–		–			9.98
OPPORTUNISTIC MUNICIPAL FUND
Class A shares
2016			10.20	0.38			0.82		1.20		(0.37	)	–		(0.37	)		11.03
2015			10.09	0.42			0.10		0.52		(0.41	)	–		(0.41	)		10.20
2014			9.12	0.44			0.96		1.40		(0.43	)	–		(0.43	)		10.09
2013			10.29	0.43			(1.16	)	(0.73	)	(0.41	)	(0.03	)	(0.44	)		9.12
2012	(i)		10.00	0.08			0.28		0.36		(0.07	)	–		(0.07	)		10.29
Class C shares
2016			10.20	0.30			0.82		1.12		(0.29	)	–		(0.29	)		11.03
2015			10.09	0.34			0.10		0.44		(0.33	)	–		(0.33	)		10.20
2014			9.12	0.37			0.96		1.33		(0.36	)	–		(0.36	)		10.09
2013			10.29	0.36			(1.17	)	(0.81	)	(0.33	)	(0.03	)	(0.36	)		9.12
2012	(i)		10.00	0.07			0.28		0.35		(0.06	)	–		(0.06	)		10.29
Class P shares
2016			10.21	0.40			0.84		1.24		(0.40	)	–		(0.40	)		11.05
2015			10.09	0.42			0.13		0.55		(0.43	)	–		(0.43	)		10.21
2014	(k)		9.22	0.29			0.88		1.17		(0.30	)	–		(0.30	)		10.09
ORIGIN EMERGING MARKETS FUND
Class A shares
2016			8.55	0.04			0.56		0.60		(0.08	)	–		(0.08	)		9.07
2015	(l)		10.00	(0.03	)		(1.42	)	(1.45	)	–		–		–			8.55
Class P shares
2016	(n)		8.08	0.07			0.82		0.89		–		–		–			8.97


						Ratio of Expenses to
						Average Net Assets
						(Excluding
				Ratio of		Dividends and	Ratio of Expenses to				Ratio of Net
			Net Assets, End of	Expenses to		Interest Expense on	Average Net Assets		Ratio of Gross		Investment Income
			Period (in	Average Net		Short Sales and	(Excluding Interest		Expenses to Average		to Average Net		Portfolio
Total Return(b)			thousands)	Assets		Short Sale Fees)	Expense and Fees)		Net Assets		Assets		Turnover Rate


(0.30)%	(d)	$	55	2.80%	(e)	2.02%(e),(f)	N/A		219.49%(e),(g)		(1.24)%	(e)	412.4%	(e)

(0.20)	(d)		10	2.57	(e)	1.79 (e),(f)	N/A		494.87 (e)	,(g)	(1.11)	(e)	412.4	(e)


11.94			49,208	0.95		N/A	0.90%	(h)	0.97	(g)	3.52		53.5
5.17			22,568	0.96		N/A	0.90	(h)	1.10	(g)	4.06		54.9
15.71			16,305	1.01		N/A	0.90	(h)	1.21	(g)	4.57		78.4
(7.53	)		13,962	1.03		N/A	0.90	(h)	1.21	(g)	4.21		103.4
3.62	(d)		7,860	1.13	(e)	N/A	0.90 (e)	,(h)	3.23 (e)	,(g)	3.78	(e)	93.8	(e)

11.01	(j)		16,455	1.70		N/A	1.65	(h)	1.82	(g)	2.79		53.5
4.39			9,869	1.71		N/A	1.65	(h)	1.96	(g)	3.32		54.9
14.86			9,101	1.76		N/A	1.65	(h)	2.08	(g)	3.83		78.4
(8.22	)		7,835	1.78		N/A	1.65	(h)	2.03	(g)	3.47		103.4
3.48	(d)		7,745	1.88	(e)	N/A	1.65 (e)	,(h)	3.93 (e)	,(g)	3.03	(e)	93.8	(e)

12.35			71,035	0.67		N/A	0.62	(h)	0.67	(g)	3.77		53.5
5.48			16,303	0.76		N/A	0.70	(h)	1.05	(g)	4.10		54.9
12.81	(d)		147	0.81	(e)	N/A	0.70 (e)	,(h)	61.41 (e)	,(g)	4.32	(e)	78.4	(e)


7.03			401	1.75		N/A	N/A		9.54	(g)	0.47		69.0
(14.50) (d),(m)			210	1.75	(e)	N/A	N/A		8.96 (e)	,(g)	(0.50	) (e)	86.6	(e)

11.01	(d)		11	1.39	(e)	N/A	N/A		423.63 (e)	,(g)	1.95	(e)	69.0	(e)

(b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Period from March 31, 2016, date shares first offered, through August 31, 2016.

(d) Total return amounts have not been annualized. (e) Computed on an annualized basis.

(f) Excludes dividends and interest expense on short sales and short sale fees and reverse repurchase agreement expense. See "Operating Policies" in notes to financial statements.

(h) Excludes interest expense and fees paid through inverse floater agreements. See "Operating Policies" in notes to financial statements. (i) Period from June 14, 2012, date shares first offered, through August 31, 2012.

(j) Total return is calculated using the traded net asset value which may differ from the reported net asset value. The traded net asset value is the net asset value which a shareholder would have paid or received from a subscription or redemption.

(k) Period from December 30, 2013, date shares first offered, through August 31, 2014. (l) Period from January 23, 2015, date shares first offered, through August 31, 2015.

(m)During 2015, the Class experienced a significant withdrawal of monies by an affiliate. As the remaining shareholders held relatively small positions, the total return amounts expressed herein are greater than those that would have been experienced without the withdrawal.

(n) Period from March 29, 2016, date shares first offered, through August 31, 2016.

Selected data for a share of Capital Stock outstanding throughout each year ended August 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
PREFERRED SECURITIES FUND
Class A shares
2016		$	10.24	$	0.49	$	0.19		$	0.68		($	0.47	)	($	0.09	)	($	0.56	)	$	10.36
2015			10.56		0.50		(0.13	)		0.37			(0.51	)		(0.18	)		(0.69	)		10.24
2014			10.17		0.53		0.66			1.19			(0.53	)		(0.27	)		(0.80	)		10.56
2013			10.36		0.54		(0.12	)		0.42			(0.55	)		(0.06	)		(0.61	)		10.17
2012			9.82		0.59		0.55			1.14			(0.57	)		(0.03	)		(0.60	)		10.36
Class C shares
2016			10.23		0.42		0.19			0.61			(0.40	)		(0.09	)		(0.49	)		10.35
2015			10.55		0.42		(0.13	)		0.29			(0.43	)		(0.18	)		(0.61	)		10.23
2014			10.16		0.45		0.66			1.11			(0.45	)		(0.27	)		(0.72	)		10.55
2013			10.35		0.46		(0.12	)		0.34			(0.47	)		(0.06	)		(0.53	)		10.16
2012			9.81		0.51		0.56			1.07			(0.50	)		(0.03	)		(0.53	)		10.35
Class P shares
2016			10.17		0.51		0.20			0.71			(0.50	)		(0.09	)		(0.59	)		10.29
2015			10.50		0.52		(0.13	)		0.39			(0.54	)		(0.18	)		(0.72	)		10.17
2014			10.11		0.55		0.66			1.21			(0.55	)		(0.27	)		(0.82	)		10.50
2013			10.30		0.56		(0.12	)		0.44			(0.57	)		(0.06	)		(0.63	)		10.11
2012			9.77		0.60		0.55			1.15			(0.59	)		(0.03	)		(0.62	)		10.30
REAL ESTATE ALLOCATION FUND
Class A shares
2016			9.62		0.22		0.76			0.98			(0.25	)		–			(0.25	)		10.35
2015	(e)		10.00		0.13		(0.44	)		(0.31	)		(0.07	)		–			(0.07	)		9.62
REAL ESTATE DEBT INCOME FUND
Class A shares
2016			9.75		0.33		0.17			0.50			(0.28	)		–			(0.28	)		9.97
2015	(e)		10.00		0.22		(0.26	)		(0.04	)		(0.21	)		–			(0.21	)		9.75
Class P shares
2016			9.76		0.34		0.09			0.43			(0.32	)		–			(0.32	)		9.87
2015	(j)		9.87		0.07		(0.07	)		–			(0.11	)		–			(0.11	)		9.76

Selected data for a share of Capital Stock outstanding throughout each year ended August 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
SMALL-MIDCAP DIVIDEND INCOME FUND
Class A shares
2016		$	12.73	$	0.34	$	2.44		$	2.78		($0.30	)	($0.26	)	($0.56	)	$	14.95
2015			14.34		0.37		(1.39	)		(1.02	)	(0.28	)	(0.31	)	(0.59	)		12.73
2014			12.25		0.37		2.24			2.61		(0.26	)	(0.26	)	(0.52	)		14.34
2013			10.46		0.34		1.80			2.14		(0.32	)	(0.03	)	(0.35	)		12.25
2012			9.28		0.34		1.22			1.56		(0.38	)	–		(0.38	)		10.46
Class C shares
2016			12.65		0.24		2.41			2.65		(0.20	)	(0.26	)	(0.46	)		14.84
2015			14.26		0.26		(1.37	)		(1.11	)	(0.19	)	(0.31	)	(0.50	)		12.65
2014			12.21		0.25		2.24			2.49		(0.18	)	(0.26	)	(0.44	)		14.26
2013			10.48		0.23		1.81			2.04		(0.28	)	(0.03	)	(0.31	)		12.21
2012	(d)		9.87		0.05		0.63			0.68		(0.07	)	–		(0.07	)		10.48
Class P shares
2016			12.90		0.38		2.48			2.86		(0.34	)	(0.26	)	(0.60	)		15.16
2015			14.53		0.41		(1.40	)		(0.99	)	(0.33	)	(0.31	)	(0.64	)		12.90
2014			12.40		0.41		2.27			2.68		(0.29	)	(0.26	)	(0.55	)		14.53
2013			10.58		0.38		1.82			2.20		(0.35	)	(0.03	)	(0.38	)		12.40
2012			9.38		0.38		1.23			1.61		(0.41	)	–		(0.41	)		10.58

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Blue Chip Fund, Credit Opportunities Explorer Fund, Diversified Real Asset Fund (consolidated), Dynamic High Yield Explorer Fund, Global Multi-Strategy Fund, Global Opportunities Equity Hedged Fund, Global Opportunities Fund, International Small Company Fund, Multi-Manager Equity Long/Short Fund, Opportunistic Municipal Fund, Origin Emerging Markets Fund, Preferred Securities Fund, Real Estate Allocation Fund, Real Estate Debt Income Fund, and Small-MidCap Dividend Income Fund, (15 of the portfolios constituting the Principal Funds, Inc. (collectively the “Funds”)) as of August 31, 2016, and the related statements of operations, the statements of changes in net assets, 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 August 31, 2016, 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 the portfolios within Principal Funds, Inc. at August 31, 2016, and the results of their operations, the changes in their net assets 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.
August 31, 2016 (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 Real Estate Allocation Fund, the fund will indirectly bear its pro rata share of 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 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 (March 1, 2016 to August 31, 2016), 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. 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 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		March 1,			Account		Account Value		March 1,		Annualized
		Value March 1,		August 31,		2016 to August			Value March		August 31,		2016 to August		Expense
		2016		2016		31, 2016	^(a)		1, 2016		2016		31, 2016	^(a)	Ratio
Blue Chip Fund
Class A	$	1,000.00	$	1,154.90	$	7.15		$	1,000.00	$	1,018.50	$	6.70		1.32	%
Class C		1,000.00		1,150.42		11.24			1,000.00		1,014.68		10.53		2.08
Class P		1,000.00		1,156.78		4.83			1,000.00		1,020.66		4.52		0.89

Credit Opportunities Explorer Fund
Class A		1,000.00		1,087.78		5.77			1,000.00		1,019.61		5.58		1.10

Diversified Real Asset Fund
Class A		1,000.00		1,100.40		6.60			1,000.00		1,018.85		6.34		1.25
Class C		1,000.00		1,096.35		10.54			1,000.00		1,015.08		10.13		2.00
Class P		1,000.00		1,102.79		5.34			1,000.00		1,020.06		5.13		1.01

Dynamic High Yield Explorer Fund
Class A		1,000.00		1,102.45		5.81			1,000.00		1,019.61		5.58		1.10

Global Multi-Strategy Fund
Class A		1,000.00		1,038.57		12.45			1,000.00		1,012.92		12.30		2.43
Class C		1,000.00		1,034.28		16.57			1,000.00		1,008.85		16.36		3.24
Class P		1,000.00		1,040.38		11.39			1,000.00		1,013.98		11.24		2.22


SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS, INC.
August 31, 2016 (unaudited)


		Actual				Hypothetical
			Expenses Paid				Expenses Paid
	Beginning	Ending	During Period		Beginning	Ending	During Period
	Account	Account Value	March 1,		Account	Account Value	March 1,		Annualized
Value March 1,		August 31,	2016 to August		Value March	August 31,	2016 to August		Expense
	2016	2016	31, 2016	^(a)	1, 2016	2016	31, 2016	^(a)	Ratio
Global Multi-Strategy Fund(Excluding Dividends and
Interest Expense on Short Sales, Short Sale Fees and
Reverse Repurchase Agreement Expense)
Class A	1,000.00	1,038.60	9.69		1,000.00	1,015.52	9.62		1.89
Class C	1,000.00	1,034.30	13.81		1,000.00	1,011.39	13.74		2.70
Class P	1,000.00	1,040.40	8.62		1,000.00	1,016.58	8.55		1.68

Global Opportunities Equity Hedged Fund
Class A	1,000.00	954.97	7.62		1,000.00	1,017.34	7.86		1.55
Class P	1,000.00	956.07	6.39		1,000.00	1,018.60	6.60		1.30

Global Opportunities Fund
Class A	1,000.00	1,077.14	7.83		1,000.00	1,017.60	7.61		1.50
Class C	1,000.00	1,073.86	11.68		1,000.00	1,013.88	11.34		2.24
Class P	1,000.00	1,080.60	5.39		1,000.00	1,019.96	5.23		1.03

International Small Company Fund
Class A	1,000.00	1,106.09	8.47		1,000.00	1,017.09	8.11		1.60
Class P	1,000.00	1,099.89	6.55		1,000.00	1,018.90	6.29		1.24

Multi-Manager Equity Long/Short Fund
Class A	1,000.00	997.00	11.69	^(b)	1,000.00	1,011.06	14.15		2.80
Class P	1,000.00	998.00	10.73	^(b)	1,000.00	1,012.22	13.00		2.57

Multi-Manager Equity Long/Short Fund(Excluding Dividends
and Interest Expense on Short Sales and Short Sale Fees)
Class A	1,000.00	997.00	8.43	^(b)	1,000.00	1,014.91	10.23		2.02
Class P	1,000.00	998.00	7.48	^(b)	1,000.00	1,016.07	9.06		1.79

Opportunistic Municipal Fund
Class A	1,000.00	1,068.13	4.94		1,000.00	1,020.36	4.82		0.95
Class C	1,000.00	1,064.18	8.82		1,000.00	1,016.59	8.62		1.70
Class P	1,000.00	1,070.52	3.49		1,000.00	1,021.77	3.40		0.67

Opportunistic Municipal Fund (Excluding
Interest Expense and Fees)
Class A	1,000.00	1,068.10	4.68		1,000.00	1,020.56	4.58		0.90
Class C	1,000.00	1,064.20	8.56		1,000.00	1,016.74	8.40		1.65
Class P	1,000.00	1,070.50	3.23		1,000.00	1,021.98	3.16		0.62

Origin Emerging Markets Fund
Class A	1,000.00	1,215.82	9.75		1,000.00	1,016.34	8.87		1.75
Class P	1,000.00	1,110.15	6.26	^(c)	1,000.00	1,018.10	7.10		1.40

Preferred Securities Fund
Class A	1,000.00	1,070.65	5.52		1,000.00	1,019.81	5.38		1.06
Class C	1,000.00	1,066.72	9.35		1,000.00	1,016.09	9.12		1.80
Class P	1,000.00	1,072.55	4.17		1,000.00	1,021.11	4.06		0.80

Real Estate Allocation Fund
Class A	1,000.00	1,112.38	2.65		1,000.00	1,022.62	2.54		0.50

Real Estate Debt Income Fund
Class A	1,000.00	1,076.47	5.22		1,000.00	1,020.11	5.08		1.00
Class P	1,000.00	1,068.24	3.90		1,000.00	1,021.37	3.81		0.75

Small-MidCap Dividend Income Fund
Class A	1,000.00	1,240.31	6.36		1,000.00	1,019.46	5.74		1.13
Class C	1,000.00	1,234.77	10.73		1,000.00	1,015.53	9.68		1.91
Class P	1,000.00	1,242.00	4.79		1,000.00	1,020.86	4.32		0.85

^(a)Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (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 (March 31, 2016, to August 31, 2016), multiplied by 153/366 (to reflect the period since inception).

^(c)Expenses are equal to a fund's annualized expense ratio multiplied by the average account value over the period (March 29, 2016, to August 31, 2016), multiplied by 155/366 (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. and Principal Exchange-Traded Funds which are 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 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


			Other
Name,		Number of Portfolios	Directorships
Position Held with the Fund,	Principal Occupation(s)	in Fund Complex	Held by Director
Year of Birth	During past 5 years	Overseen by Director	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	126	Durango Herald, Inc;
Director since 2004			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948

Leroy T. Barnes, Jr.	Retired.	126	McClatchy
Director since March 2012			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.; Frontier
1951			Communications, Inc.

Craig Damos	President, The Damos Company	126	Hardin Construction
Director since 2008			Company
Member, Audit Committee
Member, 15(c) Committee
1954

Mark A. Grimmett	Formerly, Executive Vice	126	None
Director since 2004	President and CFO, Merle
Member, Nominating and Governance	Norman Cosmetics, Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960

Fritz S. Hirsch	CEO, MAM USA	126	Focus Products Group
Director since 2005
Member, Operations Committee
Member, 15(c) Committee
1951

Tao Huang	Formerly, Chief Operating	126	Armstrong World
Director since March 2012	Officer, Morningstar, Inc.		Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962

Drew E. Lawton	Formerly, Senior Managing	126	None
Director since March 2016	Director and CEO, New York
Member, Nominating and Governance	Life Investment Management
Committee	(New York Life Insurance
1959	Company)

Karen (“Karrie”) McMillan	Managing Director, Patomak	126	None
Director since 2014	Global Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute

Elizabeth A. Nickels	Formerly, Executive Director,	126	Charlotte Russe; Follet
Director since September 2015	Herman Miller Foundation;		Corporation; Herman
Member, Audit Committee	Formerly President, Herman		Miller, Inc.; PetSmart;
1962	Miller Healthcare		SpartanNash; Spectrum
			Health Systems

The following directors are considered to be “interested persons” as defined in the 1940 Act, because of an affiliation with the Manager and Principal Life.


			Other
		Number of	Directorships
		Portfolios in	Held by
Name,		Fund Complex	Director
Position Held with the Fund,	Principal Occupation(s)	Overseen	During Past 5
Year of Birth	During past 5 years	by Director	Years
Michael J. Beer	Chief Executive Officer, Principal Funds	126	None
Director since 2012	Distributor, Inc. (“PFD”) since 2015
President, Chief Executive Officer	Director, PFD since 2015
Member, Executive Committee	Vice President/Mutual Funds and Broker
1961	Dealer, Principal Life Insurance
	Company (“PLIC”) (2001-2014)
	Vice President/Chief Operating Officer,
	Principal Funds, PLIC (2014-2015)
	Executive Director, Principal Funds &
	Trust, PLIC since 2015
	Director, Principal Management
	Corporation, (the “Manager”) (2006-2015)
	President & Chief Executive Officer,
	the Manager since 2015
	Executive Vice President/Chief Operating
	Officer, the Manager (2008-2015)
	Chair, the Manager since 2015
Director, Principal Securities, Inc. (“PSI”) (2005-
	2015)
	President, PSI (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) (2007-2015)
	Chairman, PSS since 2015
	President, PSS (2007-2015)
	Executive Vice President, PSS since 2015

Nora M. Everett	Director, Edge Asset Management,	126	None
Director since 2008	Inc. (“Edge”) (2008-2011)
Chair	Director, Finisterre Capital LLP since 2011
Member, Executive Committee	Director, Origin Asset Management
1959	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) (2010-2015)
	Chairman, PFD (2011-2015)
	Director, PFD (2008-2011)
	Senior Vice President/Retirement and
	Investor Services, PLIC (2008-2015)
	President/Retirement and Investor
	Services, PLIC since 2015
	Chairman, the Manager (2011-2015)
	President, the Manager (2008-2015)
	Director, the Manager (2008-2011)
	Director, PSI (2008-2011, and since 2015)
	Chairman, PSI (2011-2015)
	Chief Executive Officer, PSI (2009-2015)
	Chairman, PSS (2011-2015)
	Director, PSS (2008-2011)

Correspondence intended for each Director who is other than an Interested Director may be sent to 655 9^thStreet, Des Moines, IA

Name, Position Held with the Fund, Address, and Year of Birth

Randy L. Bergstrom

Assistant Tax Counsel

Des Moines, IA 50392

1955

Jennifer A. Block

Assistant Counsel and Assistant Secretary

Des Moines, IA 50392

1973

Tracy Bollin

Chief Financial Officer

Des Moines, IA 50392

1970

Principal Occupation(s) During past 5 years

Counsel, Principal Global Investors, LLC (“PGI”)

Counsel, PLIC

Counsel, PFD (2009-2013)

Counsel, PLIC

Counsel, the Manager (2009-2013, 2014 - present)

Counsel, PSI (2009-2013) Counsel, PSS (2009-2013)

Chief Financial Officer, PFA (2010-2015) Senior Vice President, PFD since 2015

Chief Financial Officer, PFD since 2010 Senior Vice President, the Manager since 2015

Chief Financial Officer, the Manager (2010-2015) Director, the Manager since 2015

Chief Financial Officer, PSI (2010-2015) Director, PSS since 2015 President, PSS since 2015 Chief Financial Officer, PSS (2010-2015)

David J. Brown

Chief Compliance Officer

Des Moines, IA 50392

1960

Senior Vice President, PFD

Chief Compliance Officer-Funds, PLIC since 2016

Vice President/Compliance, PLIC Senior Vice President, the Manager

Senior Vice President, PSI Senior Vice President, PSS

Gina L. Graham

Treasurer

Des Moines, IA 50392

1965

Vice President/Treasurer, PFA since 2016 Vice President/Treasurer, PFD since 2016 Vice President/Treasurer, PGI since 2016

Vice President/Treasurer, PLIC since 2016 Vice President/Treasurer, the Manager since 2016

Vice President/Treasurer, Principal Real Estate Investors, LLC since 2016

Vice President/Treasurer, PSI since 2016 Vice President/Treasurer, PSS since 2016

Carolyn F. Kolks

Assistant Tax Counsel

Des Moines, IA 50392

1962

Layne A. Rasmussen

Vice President and Controller

Des Moines, IA 50392

1958

Greg Reymann

Assistant Counsel

Des Moines, IA 50392

1958

Counsel, PGI

Counsel, PLIC

Vice President/Controller – Principal Funds, the Manager

Assistant General Counsel, PLIC since 2014 Assistant General Counsel, the Manager since 2015

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,

Address, and Year of Birth

Teri R. Root

Deputy Chief Compliance

Officer Des Moines, IA 50392

1979

Britney L. Schnathorst

Assistant Counsel

Des Moines, IA 50392

1981

Adam U. Shaikh

Assistant Counsel

Des Moines, IA 50392

1972

Principal Occupation(s) During past 5 years

Vice President and Chief Compliance Officer, the Manager since 2015

Compliance Officer, the Manager (2010-2013)

Vice President, PSS since 2015

Counsel, PLIC since 2013

Prior thereto, Attorney in Private Practice

Counsel, PFD (2006-2013)

Counsel, PLIC

Counsel, the Manager (2007-2013, 2014 - present)

Counsel, PSI (2007-2013) Counsel, PSS (2007-2013)

Dan Westholm

Assistant Treasurer

Des Moines, IA 50392

1966

Assistant Vice President/Treasury, PFA since 2013 Director – Treasury, PFA (2011-2013) Assistant Vice President/Treasury, PFD since 2013

Director – Treasury, PFD (2011-2013) Assistant Vice President/Treasury, PLIC since 2014 Director – Treasury, PLIC (2007-2014)

Director – Treasury, the Manager (2003-2013) Assistant Vice President/Treasury, the Manager since 2013 Assistant Vice President/Treasury, PSI since 2013

Director – Treasury, PSI (2008-2009, 2011-2013) Assistant Vice President/Treasury, PSS since 2013 Director – Treasury, PSS (2007-2013)

Beth Wilson

Vice President and Secretary

Des Moines, IA 50392

1956

Clint Woods

Vice President and Counsel

Des Moines, IA 50392

1961

Director and Secretary – Funds, PLIC

Vice President, the Manager (2007-2013)

Vice President, Associate General Counsel, Governance Officer, and

Assistant Corporate Secretary, PLIC since 2015

Assistant General Counsel, Assistant Corporate Secretary, and Governance Officer, PLIC (2013-2015)

Associate General Counsel, AEGON (2003 - 2012)

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 Prospectus dated December 31, 2015, and the Statement of Additional Information dated December 31, 2015. These documents may be obtained free of charge by writing Principal Funds, Inc., P.O. Box 8024, Boston, MA 02266-8024 or telephoning 1-800-222-5852. The prospectus may be viewed at www.PrincipalFunds.com/prospectuses.

A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities and the results of the proxy votes for the most recent twelve months ended June 30 may be obtained free of charge by telephoning 1-800-222-5852, or on the SEC website at www.sec.gov.

The Fund files complete schedules of investments with the Securities and Exchange Commission as of May 31 and November 30 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) a Subadvisory agreement with Columbus Circle Investors, a Subadvisory agreement with Passport Capital, LLC, a Subadvisory agreement with Sirios Capital Management, L.P., a Subadvisory agreement with Three Bridges Capital, LP, and an amended and restated management agreement with Principal Management Corporation (the “Manager”) related to the addition of the Multi-Manager Equity Long/Short Fund; (2) a Subadvisory agreement with Gotham Asset Management, LLC related to the Multi-Manager Equity Long/Short Fund; (3) a Subadvisory agreement with Sound Point Capital Management, LP related to the Global-Multi Strategy Fund; and (4) amended Subadvisory agreements with Cliffwater, LLC and York Registered Holdings L. P. related to the Global-Multi Strategy Fund.

On December 15, 2015, the Board met to consider, on behalf of the newly established Multi-Manager Equity Long/Short Fund (the “Fund”), the approval of: (1) an amended and restated management agreement (“Management Agreement”) between PFI, for the Fund, and the Manager and (2) a subadvisory agreement between the Manager and Passport Capital, LLC (“Passport” or a “Subadvisor”) with respect to the Fund (the “Passport Subadvisory Agreement”); (3) a subadvisory agreement between the Manager and Sirios Capital Management, L.P. (“Sirios” or a “Subadvisor”) with respect to the Fund (the “Sirios Subadvisory Agreement”); (4) a subadvisory agreement between the Manager and Three Bridges Capital, LP (“Three Bridges” or a “Subadvisor”) with respect to the Fund (the “Three Bridges Subadvisory Agreement”); and (5) a subadvisory agreement between the Manager and Columbus Circle Investors (“CCI” or a “Subadvisor”) with respect to the Fund (the “CCI Agreement”). (The Passport Subadvisory Agreement, the Sirios Subadvisory Agreement, the Three Bridges Subadvisory Agreement and the CCI Subadvisory Agreement are together referred to as the “Subadvisory Agreements,” and the Management Agreement and the Subadvisory Agreements are together referred to as the “Advisory Agreements.”)

Based upon its review, the Board concluded that it was in the best interests of the Fund to approve the Advisory Agreements. In reaching this conclusion, no single factor was determinative in the Board’s analysis, but rather the Board considered a variety of factors.

With respect to the Management Agreement, the Board considered, among other factors, that the Manager has had a long-term relationship with the PFI funds and has demonstrated a commitment to support the PFI funds. The Board concluded that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered various factors, including the following, and made certain findings and conclusions with regard thereto, in approving the Advisory Agreements.

The Board considered the nature, quality and extent of the services to be provided under the Management Agreement, including administrative services. The Board noted that, in connection with the 2015 annual renewal of the management agreements for the other PFI funds and series of Principal Variable Contracts Funds, Inc. (“PVC”) and Principal Exchange-Traded Funds (“PETF” and together with PFI and PVC, the “Principal Funds”), the Board had: (1) reviewed the services provided by the Manager to the other series of Principal Funds under the management agreements; (2) considered the experience and skills of senior management leading fund operations, the experience and skills of the personnel performing the functions under the management agreements and the resources made available to such personnel, the ability of the Manager to attract and retain high-quality personnel, and the organizational depth and stability of the Manager and concluded that appropriate resources were provided under the management agreements for the Principal Funds; (3) considered the due diligence process developed by the Manager for purposes of selecting highly qualified unaffiliated subadvisors and for monitoring and replacing unaffiliated subadvisors and concluded that this due diligence process was working well; and (4) considered the compliance program established by the Manager for the Principal Funds and their respective series and the level of compliance attained by the Principal Funds. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services to be provided by the Manager to the Fund under the Management Agreement are expected to be satisfactory.

The Board considered the nature, quality and extent of the services to be provided under each of the Subadvisory Agreements. For each Subadvisory Agreement, the Board considered the reputation, qualifications and background of the Subadvisor, the investment approach of the Subadvisor, the experience and skills of the Subadvisor’s investment personnel who would be responsible for the day-to-day management of the Fund, and the resources made available to such personnel. The Board noted that CCI currently provides subadvisory services for other series of PFI and PVC, and that the Board had reviewed and had approved for renewal those subadvisory agreements at its September 2015 Board meeting. In addition, the Board considered the Manager’s program for recommending, monitoring and replacing subadvisors and that the Manager recommended each Subadvisor based upon that program. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services to be provided by each Subadvisor to the Fund under the applicable Subadvisory Agreement are expected to be satisfactory.

As the Fund is a newly created series, the Board did not review performance of the Fund since no track record was available. The Board reviewed the historical and back-tested performance of each Subadvisor as follows:

The Board also reviewed the back-tested one-year, three-year and five-year performance returns as of September 30, 2015 (gross and net of fees) of the Fund, as compared to a relevant benchmark index and a relevant Morningstar category. The Board concluded, based on the information provided, that each Subadvisor is well qualified.

The Board considered the Fund’s proposed management and subadvisory fees, taking into consideration the complexities of the investment strategy and the objective of the Fund. With respect to the proposed management fee, the Board considered the fees proposed to be paid to each Subadvisor. The Board also received information from the Manager, based on data supplied by Broadridge, comparing the proposed management fee to advisory fees of funds in the same asset category. The Board also considered whether there are economies of scale with respect to the services to be provided to the Fund under the Management Agreement. The Board noted that the proposed management fee schedule includes breakpoints, and concluded that the proposed management fee schedule reflects an appropriate recognition of economies of scale at currently anticipated asset levels.

With respect to the subadvisory fee proposed to be paid to each Subadvisor, the Board noted that the Manager compensates each Subadvisor 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 under each Subadvisory Agreement. The Board noted that the proposed subadvisory fee schedules for two Subadvisors include breakpoints and that the proposed subadvisory fee schedules for the other two Subadvisors do not include breakpoints. The Board concluded that the subadvisory fee schedule for each Subadvisor reflects an appropriate recognition of economies of scale at currently anticipated asset levels. The Board considered the Manager’s statement that it found the proposed subadvisory fee schedules to be competitive.

In addition, in evaluating the management and subadvisory fees, the Board considered the estimated profitability of the Fund to the Manager. The Board reviewed the anticipated expense ratio of each class of the Fund and considered that the Manager proposed to cap the total expense ratios for the classes at certain levels through December 30, 2017. On the basis of the information provided, the Board concluded that the proposed management and subadvisory fees were reasonable.

The Board also considered the character and amount of other incidental benefits to be received by the Manager and each Subadvisor. The Board noted that Passport, Sirios and CCI may use soft dollars and that each such Subadvisor’s policy is to use soft dollars within the Section 28(e) safe harbor, and that Three Bridges did not intend to use soft dollars. The Board concluded that taking into account these potential benefits, the proposed management and subadvisory fees were reasonable.

Based upon all of the information considered and the conclusions reached, the Board determined that the terms of each Advisory Agreement are fair and reasonable and that approval of each of the Advisory Agreements is in the best interests of the Fund.

On June 14, 2016, the Board considered for the Multi-Manager Equity Long/Short Fund (the “Fund”), the approval of a subadvisory agreement between Principal Management Corporation (the “Manager”) and Gotham Asset Management, LLC (the “Subadvisor”) with respect to the Fund (the “Subadvisory Agreement”)

The Board considered the nature, quality and extent of the services expected to be provided under the Subadvisory Agreement. The Board considered the reputation, qualifications and background of the Subadvisor, the investment approach of the Subadvisor, the experience and skills of the Subadvisor’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 subadvisors and that the Manager recommended the Subadvisor based upon that program.

The Board reviewed the back-tested one-year, three-year and five-year performance returns as of March 31, 2016 (gross and net of proposed fees) of the Subadvisor in the proposed portfolio strategy for the Fund (which included historical performance returns of the Subadvisor in the same strategy as the proposed portfolio strategy for the Fund for the period January 1, 2016 through March 31, 2016), as compared to a relevant benchmark index for the Subadvisor’s investment sleeve, to a relevant benchmark index for the Fund and to a relevant Morningstar category. The Board also reviewed the back-tested three-year and five-year standard deviations and Sharpe ratios as of March 31, 2016 (gross and net of proposed fees) for the proposed portfolio strategy for the Fund (the calculation of which considered historical performance returns of the Subadvisor in the same strategy as the proposed portfolio strategy for the Fund for the period January 1, 2016 through March 31, 2016), as compared to those of the relevant benchmark index for the Subadvisor’s investment sleeve, the relevant benchmark index for the Fund and the Morningstar category for each of the periods referenced above. The Board concluded, based upon the information provided, that the Subadvisor is well qualified.

The Board considered the proposed subadvisory fee, noting that the Manager compensates subadvisors 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 concluded that, although the proposed subadvisory fee schedule does not include breakpoints, the Subadvisor’s fee schedule is appropriate at currently anticipated asset levels. The Board considered the Manager’s statement that it found the proposed subadvisory fee schedule to be 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 Subadvisor. The Board noted that the Subadvisor did not intend to use soft dollars. 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.

On June 14, 2016, the Board considered for the Global Multi-Strategy Fund (the “Fund”) the approval of a subadvisory agreement between Principal Management Corporation (the “Manager”) and Sound Point Capital Management, LP (the “Subadvisor”) with respect to the Fund (the “Subadvisory Agreement”).

The Board reviewed the historical one-year, three-year and since-inception (October 1, 2011) performance returns as of December 31, 2015 (gross and net of proposed fees) of the Subadvisor in an account with an investment strategy similar to the proposed strategy for the credit long/short investment sleeve of the Fund, as compared to the historical performance returns (gross and net of fees) of the two current and continuing subadvisors to the investment sleeve of the Fund and to two relevant benchmark indices for the investment sleeve, and the annual performance of the Subadvisor in the same account for each of the last four calendar years (gross and net of proposed fees), as compared to the historical performance (gross and net of fees) of the two current and continuing subadvisors and to the relevant benchmark indices. The Board also reviewed the quartile rankings of the performance of the Subadvisor’s account (net of proposed fees) and the two current and continuing subadvisors to the investment sleeve (net of fees) in a relevant Morningstar category for each of the periods and years referenced above. The Board concluded, based upon the information provided, that the historical investment performance record of the Subadvisor was satisfactory.

The Board considered the proposed subadvisory fee, noting that the Manager compensates subadvisors 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 Manager’s statement that it found the proposed subadvisory fee schedule to be 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 Subadvisor. The Board noted that the Subadvisor does not use soft dollars. The Board concluded that, on the basis of the information provided, the proposed subadvisory fee was reasonable.

On June 14, 2016, the Board considered for PFI Global Multi-Strategy Fund (the “Fund”) the approval of (1) an amended fee schedule under the subadvisory agreement between Principal Management Corporation (the “Manager”) and Cliffwater, LLC (“Cliffwater” or a “Subadvisor”) with respect to the alternative investment strategy consulting services it provides to the Fund (the “Cliffwater Subadvisory Agreement”) in connection with a proposal to reduce Cliffwater’s fee; and (2) an amended fee schedule under the subadvisory agreement between the Manager and York Registered Holdings, L.P. (“York” or a “Subadvisor”) with respect to the event driven investment sleeve of the Fund (the “York Subadvisory Agreement”) in connection with a proposal to reduce York’s fee. (The Cliffwater Subadvisory Agreement and the York Subadvisory Agreement are referred to as the “Subadvisory Agreements.”)

The Board reviewed materials received from the Manager regarding the proposed subadvisory fee reductions. The Board considered the Manager’s representation that the subadvisory fee reductions would not impact the quality or quantity of the services the Subadvisors provide to the Fund and that each Subadvisor’s obligations under the applicable Subadvisory Agreement will remain the same in all material respects. The Board also considered that the Manager was not proposing any material changes to the terms of the Subadvisory Agreements other than to the fee schedules.

The Board considered that they had last approved the Subadvisory Agreements for the Fund during the annual contract renewal process that concluded at the Board of Directors’ September 2015 meeting. They noted that during the annual contract renewal process, they had considered the nature, quality and extent of the services provided by each Subadvisor under the applicable Subadvisory Agreement and had concluded, based upon the information provided, that the terms of each Subadvisory Agreement were reasonable and that approval of each Subadvisory Agreement was in the best interests of the Fund.

Based upon all of the information considered, the Board concluded that it was in the best interests of the Fund to approve the reduced subadvisory fees.

FEDERAL INCOME TAX INFORMATION
PRINCIPAL FUNDS, INC.
August 31, 2016 (unaudited)

Long-Term Capital Gain Dividends. Certain Funds distributed long-term capital gain dividends during the fiscal year ended August 31, 2016. Details of designated long-term capital gain dividends for federal income tax purposes are shown in the notes to financial statements. To the extent necessary to distribute such capital gains, certain Funds may also utilize, and hereby designate, earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.

Dividends Received Deduction. For corporate shareholders, the percentage of ordinary income distributions (dividend income and short-term gains, if any) for the year ended August 31, 2016, that qualify for the dividends 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 August 31, 2016, 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 foreigntaxes paid to their shareholders.

The total amounts of foreign taxes passed through to shareholders on a per share basis for the year ended August 31, 2016, 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.

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

*All data cited from August 2016 Principal Economic Insights by Robert Baur, Ph.D. Chief Global Economist, available at principalfunds.com/commentary.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Spectrum Asset Management, Inc.

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

The Fund seeks to provide current income. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in preferred securities at the time of purchase. In particular, the Fund focuses on “capital securities,” which include securities issued by U.S. and non-U.S. financial institutions (including, but not limited to, banks and insurance companies) for purposes of satisfying their regulatory capital requirements.

The hybrid market performed well during the year against the backdrop of declining interest rates and central bank policy support. A small allocation to preferred stocks was a contributor as they outperformed capital securities. Security selection was positive in countries such as France and industries such as non-U.S. banking. Contingent capital (CoCo) securities, especially European bank AT1's, performed poorly in February due to the fear of coupon skips by European banks. Certain insurance names declined due to continued structural concerns of term extension rather than being called at par. Being underweight to Japanese securities detracted as they outperformed the index over the year.

* 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.

** Performance shown for the benchmark is calculated from 02/28/2014 and assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.

*** Securities described in the fund commentary may no longer be held in the fund


	STATEMENT OF ASSETS AND LIABILITIES
	PRINCIPAL FUNDS, INC.
	August 31, 2016


			Capital
Amounts in thousands, except per share amounts		Securities Fund
Investment in securities--at cost		$	292,814
Assets
Investment in securities--at value		$	295,018
Receivables:
Dividends and interest			3,541
Expense reimbursement from Manager			29
Fund shares sold			1,965
	Total Assets		300,553
Liabilities
Accrued transfer agent fees			7
Accrued directors' expenses			3
Accrued professional fees			27
Accrued other expenses			13
Payables:
Dividends payable			957
Fund shares redeemed			481
Investment securities purchased			857
	Total Liabilities		2,345
Net Assets Applicable to Outstanding Shares		$	298,208
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	295,299
Accumulated undistributed (overdistributed) net investment income (loss)			1,391
Accumulated undistributed (overdistributed) net realized gain (loss)			(686	)
Net unrealized appreciation (depreciation) of investments			2,204
	Total Net Assets	$	298,208
Capital Stock (par value: $.01 per share):
Shares authorized			500,000
Net Asset Value Per Share:
Class S: Net Assets	$		298,208
Shares Issued and Outstanding			29,881
Net Asset Value per share	$		9.98


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands						Capital Securities Fund
						Year Ended			Year Ended
						August 31, 2016		August 31, 2015
Operations
Net investment income (loss)					$	11,880		$	5,184
Net realized gain (loss) on investments						(437	)		(213	)
Change in unrealized appreciation/depreciation of investments						4,589			(2,658	)
			Net Increase (Decrease) in Net Assets Resulting from Operations			16,032			2,313

Dividends and Distributions to Shareholders
From net investment income						(11,030	)		(4,983	)
From net realized gain on investments						–			(35	)
From tax return of capital						(92	)		(256	)
			Total Dividends and Distributions			(11,122	)		(5,274	)

Capital Share Transactions
Net increase (decrease) in capital share transactions						159,918			68,943
			Total Increase (Decrease) in Net Assets			164,828			65,982

Net Assets
Beginning of period						133,380			67,398
End of period (including undistributed net investment income as set forth below)					$	298,208		$	133,380
Undistributed (overdistributed) net investment income (loss)					$	1,391		$	275

		Class S
Capital Share Transactions:
Year Ended August 31, 2016
Dollars:
Sold	$	180,767
Reinvested			9,449
Redeemed		(30,298		)
Net Increase (Decrease)	$	159,918
Shares:
Sold			18,504
Reinvested			973
Redeemed			(3,116	)
Net Increase (Decrease)			16,361
Year Ended August 31, 2015
Dollars:
Sold		$	81,091
Reinvested			4,792
Redeemed		(16,940		)
Net Increase (Decrease)		$	68,943
Shares:
Sold			8,071
Reinvested			479
Redeemed			(1,691	)
Net Increase (Decrease)			6,859

Distributions:
Year Ended August 31, 2016
From net investment income			$ (11,030)
From net realized gain on
investments			N/A
From tax return of capital			(92	)
Total Dividends and Distributions			$ (11,122)
Year Ended August 31, 2015
From net investment income $			(4,935	)
From net realized gain on
investments			(35	)
From tax return of capital			(304	)
Total Dividends and Distributions $			(5,274	)

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

Security Valuation. Capital Securities Fund values 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, such as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, other yield and risk factors, and other market conditions to determine an evaluated bid price. When reliable market quotations are not considered to be readily available, which may be the case, for example, with respect to restricted securities, certain debt 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.

Income and Investment Transactions. The fund records 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 fund records dividend income on the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method over the lives of the respective securities.

Expenses. Expenses directly attributed to the fund are charged to the fund. Other Fund expenses not directly attributed to the fund are apportioned among the registered investment companies managed by the Manager.

Distributions to Shareholders. Dividends and distributions to shareholders of Capital Securities Fund 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 and certain preferred securities, and utilization of earnings and profits distributed to shareholders on redemption of shares. Permanent book and tax basis differences are reclassified within the capital accounts based on federal tax-basis treatment; temporary differences do not require reclassification. To the extent dividends and distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as return of capital distributions.

Federal Income Taxes. No provision for federal income taxes is considered necessary because Capital Securities Fund intends to qualify as a “regulated investment company” under the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders.

Management evaluates tax positions taken or expected to be taken in the course of preparing the fund’s 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 August 31, 2016, Capital Securities Fund did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years 2013 – 2015. No examinations are in progress at this time.

Foreign Taxes. The fund is subject to foreign income taxes imposed by certain countries in which it invests. Foreign income taxes are accrued by the fund as a reduction of income. This amount is shown as withholding tax on foreign dividends on the statement of operations.

Borrowings. Pursuant to an exemptive order issued by the Securities and Exchange Commission, Capital Securities Fund 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 period ended August 31, 2016, Capital Securities Fund did not borrow from the Facility. Capital Securities Fund loaned to the Facility. The interest income received is included in interest income on the statement of operations.

In addition, the fund participates 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 0.15% on the amount of the line of credit. Capital Securities Fund did not borrow against the line of credit during the year ended August 31, 2016.

Fair value is defined as the price that the fund 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 fund uses 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 fund. Unobservable inputs are inputs that reflect the fund’s own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 3 – Significant unobservable inputs (including the fund’s 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 fund in determining fair value is greatest for instruments categorized in Level 3.

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 fund uses prices and inputs that are current as of the measurement date.

Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors of the Fund. 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 when determining fair valuation.

The Pricing Group relies on externally provided valuation inputs to determine the value of 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 fund (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.

The beginning of the period timing recognition has been adopted for the significant transfers between levels of the fund’s assets and liabilities. During the year, there were no purchases, sales, or transfers into or out of Level 3. The table below includes transfers from Level 1 to Level 2 at August 31, 2016 due to lack of exchange traded valuation data:

The following is a summary of the inputs used as of August 31, 2016 in valuing the fund's securities carried at value (amounts shown in thousands):

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

The Manager has contractually agreed to limit the expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) for the fund. The reductions and reimbursements are in amounts that maintain total operating expenses at 0.00%. The limit is expressed as a percentage of average daily net assets on an annualized basis during the reporting period. It is expected that the expense limit will continue permanently.

The fund is an integral part of “wrap-fee” programs, including those sponsored by registered investment advisors and broker-dealers unaffiliated with the fund. Participants in these programs pay a “wrap” fee to the wrap-fee program’s sponsor.

Amounts owed to Capital Securities Fund under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as an expense reimbursement from Manager and are settled monthly.

Distributions to Shareholders. The federal income tax character of distributions paid for the years ended August 31, 2016 and August 31, 2016 were as follows (amounts in thousands):

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

Distributable Earnings. As of August 31, 2016, the components of distributable earnings/(deficit) on a federal tax basis were as follows (amounts in thousands):

Capital Loss Carryforwards. For federal income tax purposes, capital loss carryforwards are losses that can be used to offset future capital gains of the fund. At August 31, 2016, the fund had approximate net capital loss carryforwards as follows (amounts in thousands):

Capital losses will be carried forward with no expiration and with the character of the loss retained.

Reclassification of Capital Accounts. The fund may record reclassifications in its capital accounts. These reclassifications have no impact on the total net assets of the fund. 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 fund’s 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 August 31, 2016, the fund recorded reclassifications as follows (amounts in thousands):

Federal Income Tax Basis. At August 31, 2016, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the fund were as follows (amounts in thousands):

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


INVESTMENT COMPANIES - 9.74%			Shares Held	Value(000			's)			Principal
Money Market Funds - 9.74%								BONDS (continued)		Amount (000's) Value (000's)
Goldman Sachs Financial Square Funds -			29,031,382	$		29,031		Banks (continued)
Government Fund								Dresdner Funding Trust I
								8.15%, 06/30/2031^(d)	$	400	$	475

TOTAL INVESTMENT COMPANIES				$		29,031		8.15%, 06/30/2031		1,100		1,309

PREFERRED STOCKS - 10.54%			Shares Held	Value(000			's)	Goldman Sachs Capital III
								4.00%, 09/29/2049^(a),(b)		169		139
Banks- 5.11	%
CoBank ACB 6.13%^(a)			6,000	$		599		HBOS Capital Funding LP
CoBank ACB 6.20%^(a),(b)			10,000			1,049		6.85%, 03/29/2049^(a)		2,300		2,332
CoBank ACB 6.25%^(a),(b)			38,800			4,124		HSBC Capital Funding Dollar1 LP
Fifth Third Bancorp 6.63%^(a),(b)			123,534			4,011		10.18%, 12/29/2049 ^(a),(b)		3,400		5,148
Huntington Bancshares Inc/OH 6.25%^(a)			80,000			2,223		10.18%, 12/29/2049 ^(a),(b),(d)		700		1,060
M&T Bank Corp 6.38%^(a),(b)			1,928			2,044		HSBC Holdings PLC
Valley National Bancorp 6.25%^(a),(b)			40,000			1,182		6.87%, 12/29/2049^(a),(b)		2,000		2,092

				$		15,232		JPMorgan Chase & Co
								6.75%, 01/29/2049^(a),(b)		2,000		2,255
Electric - 2.27%
Georgia Power Co 6.50%^(a)			10,000			1,053		KeyCorp Capital I
								1.39%, 07/01/2028^(b)		2,000		1,642
Gulf Power Co 6.45%^(a)			54,830			5,722

				$		6,775		KeyCorp Capital III
								7.75%, 07/15/2029		1,500		1,784
Insurance - 0.26%
XLIT Ltd 3.80%^(a),(b),(c)			1,000			780		Lloyds Banking Group PLC
								6.41%, 01/29/2049^(a),(d)		1,700		1,878
								7.50%, 04/30/2049^(a),(b)		4,300		4,370
Telecommunications - 2.90%
Centaur Funding Corp 9.08%^(d)			7,329			8,648		M&T Bank Corp
								6.45%, 12/29/2049^(a),(b)		1,300		1,449
								Morgan Stanley
TOTAL PREFERRED STOCKS				$		31,435		5.55%, 12/29/2049^(a),(b)		1,500		1,537
			Principal					National Australia Bank Ltd/New York
BONDS- 78.49	%		Amount (000's)	Value(000			's)	8.00%, 09/29/2049^(a)		600		601
Banks- 47.48	%							Nordea Bank AB
Australia & New Zealand Banking Group								5.50%, 09/29/2049^(a),(b),(d)		400		400
Ltd/United Kingdom								5.50%, 09/29/2049^(a),(b)		1,600		1,602

6.75%, 12/29/2049 (a),(d)		$	400		$	450		6.13%, 12/29/2049^(a),(b),(d)		2,500		2,487
Banco Bilbao Vizcaya Argentaria SA
								Northern Trust Corp
9.00%, 05/29/2049(a)			1,000			1,045		4.60%, 12/29/2049^(a),(b)		2,000		2,043
Bank of America Corp
								NTC Capital I
6.50%, 10/29/2049(a),(b)			600			654		1.20%, 01/15/2027^(b)		1,250		1,069
Bank of New York Mellon Corp/The
								NTC Capital II
4.62%, 12/29/2049(a),(b)			8,500			8,511		1.27%, 04/15/2027^(b)		1,200		1,026
4.95%, 12/29/2049^(a),(b)			2,000			2,042
								PNC Financial Services Group Inc/The
Barclays Bank PLC								6.75%, 07/29/2049^(a),(b)		1,700		1,919
7.75%, 04/10/2023^(b)			1,400			1,484
								Royal Bank of Scotland Group PLC
10.18%, 06/12/2021			900			1,153		7.50%, 12/29/2049^(a),(b)		2,900		2,748

10.18%, 06/12/2021(d)			3,000			3,845		7.64%, 03/29/2049^(a),(b)		1,000		984
Barclays PLC								8.00%, 12/29/2049^(a),(b)		1,000		968
6.63%, 06/29/2049^(a),(b)			636			605

								Societe Generale SA
8.25%, 12/29/2049(a),(b)			1,600			1,639		5.92%, 04/29/2049^(a),(b),(d)		800		813
BNP Paribas SA								7.88%, 12/29/2049^(a),(b),(d)		1,000		994

7.20%, 06/29/2049(a),(d)			3,300			3,712		8.00%, 12/29/2049^(a),(b),(d)		200		204

7.63%, 12/29/2049(a),(b),(d)			1,000			1,051		8.25%, 09/29/2049^(a),(b)		1,250		1,286
7.63%, 12/29/2049^(a),(b)			1,900			1,998
								Standard Chartered PLC
BPCE SA								6.50%, 12/29/2049^(a),(b)		1,500		1,412

12.50%, 08/29/2049(a),(b)			2,500			3,172		7.50%, 12/29/2049^(a),(b),(d)		1,300		1,299
Citigroup Inc
								SunTrust Capital I
6.13%, 12/29/2049(a),(b)			6,000			6,260		1.49%, 05/15/2027^(b)		4,500		3,713
6.25%, 12/29/2049^(a),(b)			3,100			3,348
								SunTrust Capital III
Citizens Financial Group Inc								1.30%, 03/15/2028^(b)		1,600		1,320
5.50%, 12/29/2049^(a),(b)			5,000			4,950
								Svenska Handelsbanken AB
CoBank ACB								5.25%, 12/29/2049^(a),(b)		2,100		2,090
6.25%, 12/29/2049^(a),(b)			1,000			1,084
								Swedbank AB
Commerzbank AG								5.50%, 12/29/2049^(a),(b)		4,400		4,510
8.13%, 09/19/2023^(d)			500			584
								UBS Group AG
Cooperatieve Rabobank UA								6.88%, 12/29/2049^(a),(b)		5,700		5,664
4.38%, 08/04/2025			6,000			6,371
								US Bancorp
8.40%, 11/29/2049(a),(b)			2,000			2,096		5.12%, 12/29/2049^(a),(b)		2,000		2,125
11.00%, 12/29/2049 ^(a),(b)			1,100			1,343

								Wells Fargo & Co
11.00%, 12/29/2049(a),(b),(d)			1,400			1,709		7.98%, 12/31/2049^(a),(b)		2,400		2,538

Corestates Capital III										$		141,600
1.39%, 02/15/2027^(b),(d)			2,000			1,764
								Diversified Financial Services - 1.68%
Credit Agricole SA
8.13%, 12/29/2049^(a),(b),(d)			1,100			1,180		Charles Schwab Corp/The
								7.00%, 02/28/2049^(a),(b)		2,813		3,249
8.38%, 12/31/2049^(a),(b),(d)			2,250			2,543
								Depository Trust & Clearing Corp/The
Credit Suisse Group AG								4.88%, 12/29/2049^(a),(b),(d)		1,000		1,023
6.25%, 12/29/2049^(a),(b),(d)			1,000			979
7.50%, 12/29/2049^(a),(b),(d)			4,500			4,743


Schedule of Investments
Capital Securities Fund
August 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Diversified Financial Services (continued)					Insurance (continued)
National Rural Utilities Cooperative Finance					Reinsurance Group of America Inc
Corp						3.32%, 12/15/2065^(b)	$	2,000	$	1,510
5.25%, 04/20/2046^(b)	$	700	$	739	Voya Financial Inc
		$		5,011		5.65%, 05/15/2053^(b)		2,800		2,800
Electric - 1.95%					XLIT Ltd
Emera Inc						6.50%, 12/31/2049^(a),(b)		1,400		1,048
6.75%, 06/15/2076^(b)		1,000		1,081				$		65,013
Integrys Holding Inc					Miscellaneous Manufacturers - 1.33%
6.11%, 12/01/2066^(b)		1,300		1,090	General Electric Co
NextEra Energy Capital Holdings Inc						5.00%, 12/29/2049^(a),(b)		3,703		3,971
6.35%, 10/01/2066^(b)		4,500		3,634
		$		5,805	Pipelines - 1.73%
Hand & Machine Tools - 0.22%					Enterprise Products Operating LLC
Stanley Black & Decker Inc						7.03%, 01/15/2068^(b)		2,400		2,553
5.75%, 12/15/2053		600		643	TransCanada PipeLines Ltd
						6.35%, 05/15/2067^(b)		200		160
Insurance - 21.80%					Transcanada Trust
ACE Capital Trust II						5.63%, 05/20/2075^(b)		1,600		1,588
9.70%, 04/01/2030		2,570		3,894		5.87%, 08/15/2076^(b)		800		853
Aegon NV								$		5,154
1.43%, 07/29/2049^(a),(b)		7,400		4,757	Telecommunications - 0.37%
Allstate Corp/The					Koninklijke KPN NV
5.75%, 08/15/2053^(b)		300		324		7.00%, 03/28/2073^(b)		1,000		1,101
Aon Corp
8.21%, 01/01/2027		1,000		1,327	Transportation - 1.93%
AXA SA					BNSF Funding Trust I
6.38%, 12/29/2049^(a),(b),(d)		2,800		3,052		6.61%, 12/15/2055^(b)		5,000		5,764
8.60%, 12/15/2030		2,400		3,369
Catlin Insurance Co Ltd					TOTAL BONDS			$		234,062
7.25%, 07/29/2049^(a),(d)		3,100		2,387			Principal
Chubb Corp/The					CONVERTIBLE BONDS - 0.16%		Amount (000's) Value (000's)
6.38%, 03/29/2067^(b)		3,600		3,364	Banks - 0.16%
Dai-ichi Life Insurance Co Ltd/The					ING Groep NV
5.10%, 10/29/2049^(a),(b),(d)		100		110		6.50%, 12/29/2049^(a),(b)		500		490
Everest Reinsurance Holdings Inc
6.60%, 05/01/2067^(b)		1,600		1,300	TOTAL CONVERTIBLE BONDS			$		490
Glen Meadow Pass-Through Trust					Total Investments			$		295,018
6.51%, 02/12/2067^(b),(d)		3,900		2,944
					Other Assets and Liabilities - 1.07%			$		3,190
Great-West Life & Annuity Insurance Capital					TOTAL NET ASSETS - 100.00%			$		298,208
LP
6.63%, 11/15/2034^(d)		1,200		1,424
Hartford Financial Services Group Inc/The					(a)	Perpetual security. Perpetual securities pay an indefinite stream of
8.13%, 06/15/2068^(b)		500		546		interest, but they may be called by the issuer at an earlier date.

Liberty Mutual Group Inc					(b)	Variable Rate. Rate shown is in effect at August 31, 2016.
7.00%, 03/07/2067^(b),(d)		300		250
					(c)	Security is Illiquid. At the end of the period, the value of these securities
7.80%, 03/07/2087^(d)		2,200		2,552		totaled $780 or 0.26% of net assets.

Liberty Mutual Insurance Co					(d)	Security exempt from registration under Rule 144A of the Securities Act of
7.70%, 10/15/2097^(d)		1,100		1,468		1933. These securities may be resold in transactions exempt from
						registration, normally to qualified institutional buyers. At the end of the
Lincoln National Corp						period, the value of these securities totaled $71,030 or 23.82% of net
3.16%, 05/17/2066^(b)		1,300		1,011		assets.

6.05%, 04/20/2067^(b)		1,100		842

Meiji Yasuda Life Insurance Co
5.20%, 10/20/2045^(b),(d)		1,000		1,140
MetLife Capital Trust IV
7.88%, 12/15/2067^(d)		1,800		2,259		Portfolio Summary (unaudited)
MetLife Capital Trust X					Sector					Percent
9.25%, 04/08/2068^(d)		3,900		5,575	Financial					76.49	%
MetLife Inc					Investment Companies					9.74	%
5.25%, 12/29/2049^(a),(b)		1,600		1,609	Utilities					4.22	%
6.40%, 12/15/2066^(b)		700		786	Industrial					3.48	%
10.75%, 08/01/2069		500		805	Communications					3.27	%
Mitsui Sumitomo Insurance Co Ltd					Energy					1.73	%
7.00%, 03/15/2072^(d)		3,600		4,356	Other Assets and Liabilities					1.07	%
Nationwide Financial Services Inc					TOTAL NET ASSETS					100.00	%
6.75%, 05/15/2087		500		528
Nippon Life Insurance Co
5.00%, 10/18/2042^(b),(d)		1,525		1,672
PartnerRe Finance II Inc
6.44%, 12/01/2066^(b)		1,000		958
Prudential Financial Inc
5.63%, 06/15/2043^(b)		2,800		3,003
Prudential PLC
7.75%, 01/29/2049^(a)		2,000		2,043

We have audited the accompanying statement of assets and liabilities, including the schedule of investments of Capital Securities Fund (the Fund) as of August 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s 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 Fund’s internal control over financial reporting. Our audit 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 Fund’s 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 August 31, 2016, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers 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 Capital Securities Fund at August 31, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the year then ended and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

SHAREHOLDER EXPENSE EXAMPLE
PRINCIPAL FUNDS,INC.
August 31, 2016 (unaudited)

As a shareholder of Capital Securities Fund, you may incur ongoing costs, including management fees; distribution fees; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Principal Funds, Inc. and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2016 to August 31, 2016), 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. Capital Securities Fund shares may only be purchased through wrap programs. Such programs may impose fees in addition to those charged by the fund. 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 the 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.

^(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


			Other
Name,		Number of Portfolios	Directorships
Position Held with the Fund,	Principal Occupation(s)	in Fund Complex	Held by Director
Year of Birth	During past 5 years	Overseen by Director	During Past 5 Years
Elizabeth Ballantine	Principal, EBA Associates	126	Durango Herald, Inc;
Director since 2004			McClatchy
Member, Nominating and Governance			Newspapers, Inc.
Committee
1948

Leroy T. Barnes, Jr.	Retired.	126	McClatchy
Director since March 2012			Newspapers, Inc.;
Member, Audit Committee			Herbalife Ltd.; Frontier
1951			Communications, Inc.

Craig Damos	President, The Damos Company	126	Hardin Construction
Director since 2008			Company
Member, Audit Committee
Member, 15(c) Committee
1954

Mark A. Grimmett	Formerly, Executive Vice	126	None
Director since 2004	President and CFO, Merle
Member, Nominating and Governance	Norman Cosmetics, Inc.
Committee
Member, 15(c) Committee
Member, Executive Committee
1960

Fritz S. Hirsch	CEO, MAM USA	126	Focus Products Group
Director since 2005
Member, Operations Committee
Member, 15(c) Committee
1951

Tao Huang	Formerly, Chief Operating	126	Armstrong World
Director since March 2012	Officer, Morningstar, Inc.		Industries, Inc.
Member, Operations Committee
Member, 15(c) Committee
1962

Drew E. Lawton	Formerly, Senior Managing	126	None
Director since March 2016	Director and CEO, New York
Member, Nominating and Governance	Life Investment Management
Committee	(New York Life Insurance
1959	Company)

Karen (“Karrie”) McMillan	Managing Director, Patomak	126	None
Director since 2014	Global Partners, LLC.
Member, Operations Committee	Formerly, General Counsel,
1961	Investment Company Institute

Elizabeth A. Nickels	Formerly, Executive Director,	126	Charlotte Russe; Follet
Director since September 2015	Herman Miller Foundation;		Corporation; Herman
Member, Audit Committee	Formerly President, Herman		Miller, Inc.; PetSmart;
1962	Miller Healthcare		SpartanNash; Spectrum
			Health Systems

The following directors are considered to be “interested persons” as defined in the 1940 Act, because of an affiliation with the Manager and Principal Life.


			Other
		Number of	Directorships
		Portfolios in	Held by
Name,		Fund Complex	Director
Position Held with the Fund,	Principal Occupation(s)	Overseen	During Past 5
Year of Birth	During past 5 years	by Director	Years
Michael J. Beer	Chief Executive Officer, Principal Funds	126	None
Director since 2012	Distributor, Inc. (“PFD”) since 2015
President, Chief Executive Officer	Director, PFD since 2015
Member, Executive Committee	Vice President/Mutual Funds and Broker
1961	Dealer, Principal Life Insurance
	Company (“PLIC”) (2001-2014)
	Vice President/Chief Operating Officer,
	Principal Funds, PLIC (2014-2015)
	Executive Director, Principal Funds &
	Trust, PLIC since 2015
	Director, Principal Management
	Corporation, (the “Manager”) (2006-2015)
	President & Chief Executive Officer,
	the Manager since 2015
	Executive Vice President/Chief Operating
	Officer, the Manager (2008-2015)
	Chair, the Manager since 2015
Director, Principal Securities, Inc. (“PSI”) (2005-
	2015)
	President, PSI (2005-2015)
	Director, Principal Shareholder
	Services (“PSS”) (2007-2015)
	Chairman, PSS since 2015
	President, PSS (2007-2015)
	Executive Vice President, PSS since 2015

Nora M. Everett	Director, Edge Asset Management,	126	None
Director since 2008	Inc. (“Edge”) (2008-2011)
Chair	Director, Finisterre Capital LLP since 2011
Member, Executive Committee	Director, Origin Asset Management
1959	LLP since 2011
	Chairman, Principal Financial
	Advisors, Inc. (“PFA”) (2010-2015)
	Chairman, PFD (2011-2015)
	Director, PFD (2008-2011)
	Senior Vice President/Retirement and
	Investor Services, PLIC (2008-2015)
	President/Retirement and Investor
	Services, PLIC since 2015
	Chairman, the Manager (2011-2015)
	President, the Manager (2008-2015)
	Director, the Manager (2008-2011)
	Director, PSI (2008-2011, and since 2015)
	Chairman, PSI (2011-2015)
	Chief Executive Officer, PSI (2009-2015)
	Chairman, PSS (2011-2015)
	Director, PSS (2008-2011)

Correspondence intended for each Director who is other than an Interested Director may be sent to 655 9^thStreet, Des Moines, IA

Name, Position Held with the Fund, Address, and Year of Birth

Randy L. Bergstrom

Assistant Tax Counsel

Des Moines, IA 50392

1955

Jennifer A. Block

Assistant Counsel and Assistant

Secretary

Des Moines, IA 50392

1973

Tracy Bollin

Chief Financial Officer

Des Moines, IA 50392

1970

Principal Occupation(s) During past 5 years

Counsel, Principal Global Investors, LLC (“PGI”)

Counsel, PLIC

Counsel, PFD (2009-2013)

Counsel, PLIC

Counsel, the Manager (2009-2013, 2014 - present)

Counsel, PSI (2009-2013) Counsel, PSS (2009-2013)

Chief Financial Officer, PFA (2010-2015) Senior Vice President, PFD since 2015 Chief Financial Officer, PFD since 2010

Senior Vice President, the Manager since 2015 Chief Financial Officer, the Manager (2010-2015)

Director, the Manager since 2015 Chief Financial Officer, PSI (2010-2015) Director, PSS since 2015

President, PSS since 2015 Chief Financial Officer, PSS (2010-2015)

David J. Brown

Chief Compliance Officer

Des Moines, IA 50392

1960

Senior Vice President, PFD

Chief Compliance Officer-Funds, PLIC since 2016

Vice President/Compliance, PLIC

Senior Vice President, the Manager Senior Vice President, PSI Senior Vice President, PSS

Gina L. Graham

Treasurer

Des Moines, IA 50392

1965

Vice President/Treasurer, PFA since 2016 Vice President/Treasurer, PFD since 2016 Vice President/Treasurer, PGI since 2016

Vice President/Treasurer, PLIC since 2016 Vice President/Treasurer, the Manager since 2016

Vice President/Treasurer, Principal Real Estate Investors, LLC since 2016 Vice President/Treasurer, PSI since 2016

Vice President/Treasurer, PSS since 2016

Carolyn F. Kolks

Assistant Tax Counsel

Des Moines, IA 50392

1962

Layne A. Rasmussen

Vice President and Controller

Des Moines, IA 50392

1958

Greg Reymann

Assistant Counsel

Des Moines, IA 50392

1958

Counsel, PGI

Counsel, PLIC

Vice President/Controller – Principal Funds, the Manager

Assistant General Counsel, PLIC since 2014 Assistant General Counsel, the Manager since 2015

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, Address, and Year of Birth

Teri R. Root

Deputy Chief Compliance Officer

Des Moines, IA 50392

1979

Britney L. Schnathorst

Assistant Counsel

Des Moines, IA 50392

1981

Adam U. Shaikh

Assistant Counsel

Des Moines, IA 50392

1972

Principal Occupation(s) During past 5 years

Vice President and Chief Compliance Officer, the Manager since 2015

Compliance Officer, the Manager (2010-2013)

Vice President, PSS since 2015

Counsel, PLIC since 2013

Prior thereto, Attorney in Private Practice

Counsel, PFD (2006-2013) Counsel, PLIC

Counsel, the Manager (2007-2013, 2014 - present)

Counsel, PSI (2007-2013) Counsel, PSS (2007-2013)

Dan Westholm

Assistant Treasurer

Des Moines, IA 50392

1966

Assistant Vice President/Treasury, PFA since 2013 Director – Treasury, PFA (2011-2013) Assistant Vice President/Treasury, PFD since 2013

Director – Treasury, PFD (2011-2013) Assistant Vice President/Treasury, PLIC since 2014 Director – Treasury, PLIC (2007-2014)

Director – Treasury, the Manager (2003-2013) Assistant Vice President/Treasury, the Manager since 2013 Assistant Vice President/Treasury, PSI since 2013

Director – Treasury, PSI (2008-2009, 2011-2013) Assistant Vice President/Treasury, PSS since 2013 Director – Treasury, PSS (2007-2013)

Beth Wilson

Vice President and Secretary

Des Moines, IA 50392

1956

Clint Woods

Vice President and Counsel

Des Moines, IA 50392

1961

Director and Secretary – Funds, PLIC

Vice President, the Manager (2007-2013)

Vice President, Associate General Counsel, Governance Officer, and

Assistant Corporate Secretary, PLIC since 2015

Assistant General Counsel, Assistant Corporate Secretary, and Governance Officer, PLIC (2013-2015)

Associate General Counsel, AEGON (2003 - 2012)

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 Board considered the proposed subadvisory fee, noting that the Manager compensates subadvisors 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 Manager’s statement that it found the proposed subadvisory fee schedule to be competitive. On the basis of the information provided, the Board concluded that the proposed subadvisory fee was reasonable.

Based upon all of the information considered, the Board concluded that it was in the best interests of the Fund to approve the reduced subadvisory fees.

FEDERAL INCOME TAX INFORMATION
PRINCIPAL FUNDS, INC.
August 31, 2016 (unaudited)

Dividends Received Deduction. For corporate shareholders, the percentage of ordinary income distributions (dividend income and short-term gains, if any) for the year ended August 31, 2016, that qualifies for the dividends received deduction is as follows:

Qualified Dividend Income. Certain dividends paid by the Fund 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 percentage of ordinary income distribution for the fiscal year ended August 31, 2016, taxed at a maximum rate of 15% is as follows:

Principal Funds Distributor, Inc.
711 High Street
Des Moines, IA 50392-6370

Do not use this address for business correspondence.

(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

(c) The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(f) The Registrant's Code of Ethics is attached as an Exhibit in response to Item 12(a)(1).

The Registrant's Board has determined that Dan Pavelich, a member of the Registrant's Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item.

(a) Audit Fees. Ernst & Young is the principal accountant for the registrant. As such, Ernst & Young has audited the financial statements of the registrant and reviewed regulatory filings that include those financial statements. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional services.

(b) Audit-Related Fees. Ernst & Young provided audit-related services to the registrant during the last two fiscal years that are not included in response to item 4(a). Those services related to the review of Form N-1A and Form N-14. Ernst & Young has billed the following amounts for those services.

Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(c) Tax Fees. Ernst & Young reviews the federal income tax returns and federal excise tax returns of the registrant. In connection with this review, Ernst & Young reviews the calculation of the registrant’s dividend distributions that are included as deductions on the tax returns. Ernst & Young also provides services to identify passive foreign investment companies. Ernst & Young also provides services to understand and comply with tax laws in certain foreign countries. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional tax services.

Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(d) All Other Fees. Ernst & Young has not billed the registrant for other products or services during the last two fiscal years.

Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(e) (1) Audit Committee Pre-Approval Policy. The audit committee of the registrant has adopted the following pre-approval policy:

The purpose of this policy is to ensure the independence of the Principal Funds' primary independent auditor. This policy is established by the Audit Committee (the "Committee") of the Boards of Directors of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. and the Board of Trustees of Principal Exchange-Traded Funds (the “Funds”) (the “Boards of the Funds”) effective for all engagements of the primary independent auditor.

1. The primary independent auditor, its subsidiaries and affiliates shall not provide Prohibited Services to the Funds. For the purposes of this policy, Prohibited Services are:

• Services that are subject to audit procedure during a financial statement audit;

• Services where the auditor is an advocate to the client's position in an adversarial proceeding;

• Bookkeeping or other services related to the accounting records or financial statements of the Funds, its subsidiaries and affiliates;

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

• Tax planning services related to listed, confidential and aggressive transactions;

• Personal tax planning services to individuals in a financial reporting oversight role with regard to the Funds (other than members of the Boards of the Funds who are not also officers of the Funds), including the immediate family members of such individuals;

• Any other service that the Public Company Accounting Oversight Board (PCAOB) determines, by regulation, is impermissible.

2. (A) All services the primary independent auditor, its subsidiaries and affiliates provide to the Funds, and (B) Audit services, including audits of annual financial statements, audits of acquired or divested businesses or review of regulatory filings, any independent auditor provides, shall be approved by the Committee in advance in accordance with the following procedure:

Each quarter, Management will present to the Committee for pre-approval, a detailed description of each particular service, excluding tax services, for which pre-approval is sought and a range of fees for such service. The Committee may delegate pre-approval authority to one or more of its members provided such delegated member(s) shall present a report of any services approved to the full Committee at its next regularly scheduled meeting. The Committee Chairperson shall have pre-approval authority for changes to any range of fees applicable to services the Committee previously approved and for new services and the range of fees for such services that arise between regularly scheduled Committee meetings.

Similarly, the primary independent auditor will present to the Committee for pre-approval a written description of the nature and scope of all tax services not expressly prohibited, including the fee arrangements for such services, and the potential effects of such services on the audit firm’s independence.

In considering whether to pre-approve the primary independent auditor’s provision of non-audit services, the Committee will consider whether the services are compatible with the maintenance of such auditor's independence. The Committee will also consider whether the primary independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds' business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Funds' ability to manage or control risk or improve audit quality.

(e) (2) Pre-Approval Waivers. There were no services provided to the registrant by Ernst & Young that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Substantially all work in connection with the audit of the registrant’s financial statements was performed by full-time employees of Ernst & Young.

(g) The aggregate non-audit fees Ernst and Young billed to the registrant, the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant for each of registrant's last two fiscal years were as follows.

(h) The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

ITEM 7 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

ITEM 9 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

There have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of directors.

a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).

(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(a)(1) Code of Ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act are attached hereto as Exhibit 99.CERT.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act is attached hereto as Exhibit 99.906CERT.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Due to size constraints, this filing is being made in two related submissions. This submission is the second of the two related submissions.

The accession number of the previous related submission is as follows: 0000898745-16-001567


Average Annual Total Returns* as of August 31, 2016
							Extended
		1-Year		Since Inception		Inception Date	Performance
							Inception Date
Class A Shares	Excluding Sales Charge	10.77	%	14.45	%	9/30/13	6/14/12
	Including Sales Charge	4.70	%	12.93	%
Class C Shares	Excluding Sales Charge	9.93	%	13.60	%	9/30/13	6/14/12
	Including Sales Charge	8.93	%	13.60	%
Class P Shares	Excluding Sales Charge	11.21	%	14.96	%	9/30/13	6/14/12


Total Investment Expense as shown in the 12/31/15 prospectus
Gross Expense Ratio			Net Expense Ratio
Class A Shares	1.39	%	1.35	%
Class C Shares	2.33	%	2.10	%
Class P Shares	1.41	%	0.89	%

Average annual total returns* including sales charge as of 6/30/16:
Class A Shares: -2.87% (1-year); 11.80% (since inception)
Class C Shares: 0.95% (1-year); 12.51% (since inception)
Class P Shares****: 3.20% (1-year); 13.87% (since inception)


Average Annual Total Returns* as of August 31, 2016
		1-Year		Since Inception		Inception Date
Class A Shares	Excluding Sales Charge	4.51	%	0.68	%	9/10/14
	Including Sales Charge	0.64	%	-1.26	%


Total Investment Expense as shown in the 12/31/15 prospectus
	Gross Expense Ratio					Net Expense Ratio
Class A Shares		1.39	%			1.10	%

Average annual total returns* including sales charge as of 6/30/16:
Class A Shares: -3.61% (1-Year); -2.44% (since inception)


Average Annual Total Returns* as of August 31, 2016

									Extended
		1-Year		5-Year		Since		Inception	Performance
						Inception		Date	Inception
									Date
Class A Shares	Excluding Sales Charge	-0.85	%	0.64	%	3.22	%	3/16/10	-
	Including Sales Charge	-4.59	%	-0.12	%	2.61	%
Class C Shares	Excluding Sales Charge	-1.55	%	-0.10	%	2.47	%	3/16/10	-
	Including Sales Charge	-2.53	%	-0.10	%	2.47	%
Class P Shares	Excluding Sales Charge	-0.60	%	0.90	%	3.49	%	9/27/10	3/16/10


Total Investment Expense as shown in the 12/31/15 prospectus
	Gross Expense Ratio		Net Expense Ratio
Class A Shares	1.25	%	1.25	%
Class C Shares	2.04	%	2.00	%
Class P Shares	1.06	%	1.01	%

Average annual total returns* including sales charge as of 6/30/16:
Class A Shares: -10.64% (1-year); -0.32% (5-year); 2.57% (since inception)
Class C Shares: -8.81% (1-year); -0.31% (5-year); 2.43% (since inception)
Class P Shares****: -6.88% (1-year); 0.70% (5-year); 3.46% (since inception)


Table of Contents

Letter from the President	1
Economic & Financial Market Review	3
Blue Chip Fund	4
Credit Opportunities Explorer Fund	6
Diversified Real Asset Fund	8
Dynamic High Yield Explorer Fund	10
Global Multi-Strategy Fund	12
Global Opportunities Equity Hedged Fund	14
Global Opportunities Fund	16
International Small Company Fund	18
Opportunistic Municipal Fund	20
Origin Emerging Markets Fund	22
Preferred Securities Fund	24
Real Estate Allocation Fund	26
Real Estate Debt Income Fund	28
Small-MidCap Dividend Income Fund	30
Financial Statements	32
Notes to Financial Statements	57
Schedules of Investments	89
Financial Highlights (Includes performance information)	180
Report of Independent Registered Public Accounting Firm	192
Shareholder Expense Example	193
Supplemental Information	195

^(a)	Consolidated financial statement, see "Basis for Consolidation" in Notes to Financial Statements.
^(b)	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

^(a)	R-3, R-4 and R-5 shares commenced operations on March 29, 2016.
^(b)	Consolidated financial statement, see "Basis for Consolidation" in Notes to Financial Statements.

^(a)	Period from January 23, 2015, date operations commenced, through August 31, 2015.
^(b)	Period from March 29, 2016, date operations commenced, through August 31, 2016 for Class P shares.

^(a)	Period from December 31, 2014, date operations commenced, through August 31, 2015.
^(b)	Period from June 15, 2015, date operations commenced, through August 31, 2015 for Class P shares.


Diversified			Global			Global Opportunities			Global
Real Asset Fund			Multi- Strategy Fund			Equity Hedged Fund			Opportunities
Euro	5.3	%	Euro	5.2	%	Euro	13.5	%	Euro	13.9	%
						Japanese Yen	8.6		British Pound	8.8
						British Pound	8.6		Japanese Yen	8.5


International			Multi-Manager Equity			Origin Emerging
Small Company Fund			Long/Short Fund			Markets Fund
Japanese Yen	28.5	%	Euro	12.4	%	Hong Kong Dollar	29.0	%
Euro	24.6					South Korean Won	17.8
British Pound	15.7					New Taiwan Dollar	9.6
Canadian Dollar	10.7
Australian Dollar	5.3


		Average	Weighted Average
		Outstanding Balance	Interest Rate
Blue Chip Fund	$	471	.89	%
Diversified Real Asset Fund		1	.92
Global Multi-Strategy Fund		86	.67
Global Opportunities Equity Hedged Fund		5	.61
Global Opportunities Fund		22	.66
International Small Company Fund		10	.82
Preferred Securities Fund		161	.87
Real Estate Debt Income Fund		18	.73


Counterparty Abbreviations used:
BOA	Bank of America	HSBC	HSBC Securities
BARC	Barclays Bank PLC	JPM	JP Morgan Chase
BNP	BNP Paribas	ML	Merrill Lynch
BNYM	Bank of New York Mellon	MS	Morgan Stanley
CITI	Citigroup Inc	RBC	RBC Dominion Securities
CBA	Commonwealth Bank of Australia	RBS	Royal Bank of Scotland
CS	Credit Suisse	SCB	Standard Chartered Bank, Hong Kong
DB	Deutsche Bank AG	SN	Stifel, Nicolaus & Co
GOLD	Goldman Sachs	UBS	UBS AG


			Notional Amount
Diversified Real Asset Fund	Number of Contracts		(thousands)			Premium (thousands)
Beginning of period	98,056,121		79,520		$	2,542
Options written	490,683,117		127,475			5,326
Options expired	(79,185,322	)	(2,800	)		(734	)
Options closed	(364,642,185	)	(87,970	)		(4,335	)
Options exercised	(68,360,000	)	(25,160	)		(1,127	)
Balance at end of period	76,551,731		91,065		$	1,672

			Notional Amount
Global Multi-Strategy Fund	Number of Contracts		(thousands)			Premium (thousands)
Beginning of period	20,103,785		495,000		$	8,097
Options written	109,072,803		771,400			40,334
Options expired	(16,963,273	)	—			(4,766	)
Options closed	(86,371,264	)	(606,300	)		(37,569	)
Options exercised	(5,800,263	)	—			(155	)
Balance at end of period	20,041,788		660,100		$	5,941


		Remaining		Payable for Reverse
Fund	Security Type	Contractual Tenor		Repurchase Agreement
Global Multi Strategy Fund	U.S. Treasury and Agency Securities	Overnight and Continuous	$	234,209
Global Multi Strategy Fund	Foreign Corporate Bond	Greater than 90 Days		23,458
	Gross amount of recognized liabilities for reverse repurchase agreements		$	257,667


		Unfunded Loan Commitment	Unrealized gain/loss
Global Multi-Strategy Fund	$	192	$ —


Fund	Total Percentage of Outstanding Shares Owned
Blue Chip Fund	93.49	%
Diversified Real Asset Fund	20.54
Global Multi-Strategy Fund	50.03
Global Opportunities Fund	98.77
International Small Company Fund	98.26
Multi-Manager Equity Long/Short Fund	42.73
Origin Emerging Markets Fund	70.45
Preferred Securities Fund	4.05
Real Estate Debt Income Fund	98.62
Small-MidCap Dividend Income Fund	31.24


			Average Notional
			Or Number of
Contract Type	Derivative Type		Contracts
Credit Opportunities Explorer Fund
Credit Contracts	Exchange Cleared Credit Default Swaps - Buy Protection	$	1,420,750
Equity Contracts	Total Return Swaps - Receive Floating Rate	$	200,000
Interest Rate Contracts	Futures – Long	$	4,068,998
	Futures – Short	$	8,419,903
Diversified Real Asset Fund
Commodity Contracts	Futures – Long	$	291,692,369
	Futures – Short	$	11,325,014
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	731,752,566
	Foreign Currency Contracts - Contracts to Deliver	$	896,911,323
	Purchased Options		172,240,000
	Written Options		78,321,250
Interest Rate Contracts	Exchange Cleared Interest Rate Swaps - Pay Floating Rate	$	9,700,000
	Exchange Cleared Interest Rate Swaps - Receive Floating Rate	$	22,944,750
	Futures – Long	$	73,466,936
	Futures – Short	$	97,505,000
	Interest Rate Swaps - Pay Floating Rate	$	9,406,140
	Interest Rate Swaps - Receive Floating Rate	$	13,386,140
	Purchased Capped Options		16,410,000
	Purchased Interest Rate Swaptions	$	16,090,000
	Purchased Options		837
	Written Interest Rate Swaptions	$	57,482,915
	Written Options		960


Global Multi-Strategy Fund	$	1,140,361
Preferred Securities Fund		40,015,808


Global Multi-Strategy Fund	$	1,881,946
Preferred Securities Fund		8,372,979

*	For additional detail regarding sector classifications, please see the Schedules of Investments.
**	Exchange Cleared Swaps, Futures, Foreign Currency Contracts, and Synthetic Futures are valued at the unrealized appreciation/(depreciation) of the instrument.


			Net Assets of Fund
	First $500		Next $500		Next $500		Over $1.5
	million		million		million		billion
Blue Chip Fund	.70	%	.68	%	.66	%	.65	%
Credit Opportunities Explorer Fund	.60		.58		.56		.55
Dynamic High Yield Explorer Fund	.65		.63		.61		.60
Global Opportunities Equity Hedged Fund	1.10		1.08		1.06		1.05
Global Opportunities Fund	.85		.83		.81		.80
International Small Company Fund	1.05		1.03		1.01		1.00
Multi-Manager Equity Long/Short Fund	1.57		1.55		1.53		1.52
Opportunistic Municipal Fund	.50		.48		.46		.45
Origin Emerging Markets Fund	1.20		1.18		1.16		1.15
Real Estate Debt Income Fund	.55		.53		.51		.50



			Period from September 1, 2015 through August 31, 2016
	Class A		Class C		Institutional		R-6		Expiration
Blue Chip Fund	1.35	%	2.10	%	.75	%	N/A		December 30, 2016
Credit Opportunities Explorer Fund	1.10		N/A		.70		N/A		December 30, 2016
Diversified Real Asset Fund	1.25		2.00		.88		.88	%	December 30, 2016
Dynamic High Yield Explorer Fund	1.10		N/A		.75		N/A		December 30, 2016
Global Multi-Strategy Fund	2.00		2.75		1.65		N/A		December 30, 2016
Global Opportunities Equity Hedged Fund	1.55	*	N/A		1.25	*	N/A		December 30, 2016
Global Opportunities Fund	1.50		2.25		N/A		N/A		December 30, 2016
International Small Company Fund	1.60		N/A		1.20		N/A		December 30, 2016
Multi-Manager Equity Long/Short Fund	2.02	**	N/A		1.67	**	1.60	**	December 30, 2017
Opportunistic Municipal Fund	.90		1.65		.65		N/A		December 30, 2016
Origin Emerging Markets Fund	1.75		N/A		1.25		1.26		December 30, 2016
Real Estate Allocation Fund	.50		N/A		.15		N/A		December 30, 2016
Real Estate Debt Income Fund	1.00		N/A		.70		N/A		December 30, 2016
Small-MidCap Dividend Income Fund	N/A		2.15		.88		N/A		December 30, 2016

*	Period from September 22, 2015 to August 31, 2016.
**	Period from March 31, 2016 to August 31, 2016.

*	Period from September 22, 2015 to August 31, 2016.
**	Period from March 31, 2016 to August 31, 2016.
***	Period from March 29, 2016 to August 31, 2016.


						Covers on
						Securities		Securities
		Purchases		Sales		Sold Short		Sold Short
Blue Chip Fund	$	463,905	$	521,944	$	—	$	—
Credit Opportunities Explorer Fund		71,721		76,299		—		—
Diversified Real Asset Fund		2,125,025		2,008,814		—		—
Dynamic High Yield Explorer Fund		15,014		15,402		—		—
Global Multi-Strategy Fund		3,952,643		4,372,572		854,902		726,881
Global Opportunities Equity Hedged Fund		17,540		11,039		—		—
Global Opportunities Fund		1,856,182		1,817,609		—		—
International Small Company Fund		181,713		26,810		—		—
Multi-Manager Equity Long/Short Fund		546,455		265,477		85,444		202,487
Opportunistic Municipal Fund		132,731		48,420		—		—
Origin Emerging Markets Fund		521,459		592,079		—		—
Preferred Securities Fund		1,484,473		690,965		—		—
Real Estate Allocation Fund		1,011		449		—		—
Real Estate Debt Income Fund		123,451		14,908		—		—
Small-MidCap Dividend Income Fund		659,614		463,204		—		—


								Long-Term
		Ordinary Income ^#Tax-Exempt Income^{^}						Capital Gain *^,**#
		2016		2015		2016	2015	2016		2015
Blue Chip Fund	$	6,074	$	13,424	$	— $	— $	24,036	$	3,389
Credit Opportunities Explorer Fund		570		720		—	—	—		—
Diversified Real Asset Fund		36,288		50,807		—	—	—		17,623
Dynamic High Yield Explorer Fund		751		634		—	—	—		—
Global Multi-Strategy Fund		26,530		25,856		—	—	62,233		28,046
Global Opportunities Equity Hedged Fund		10		—		—	—	—		—
Global Opportunities Fund		17,178		91,280		—	—	11,145		43,405
International Small Company Fund		181		37		—	—	—		—
Opportunistic Municipal Fund		—		—		3,302	1,171	—		—
Origin Emerging Markets Fund		7,563		—		—	—	—		—
Preferred Securities Fund		246,710		239,040		—	—	42,753		88,651
Real Estate Allocation Fund		12		2		—	—	—		—
Real Estate Debt Income Fund		2,379		937		—	—	—		—
Small-MidCap Dividend Income Fund		44,005		40,671		—	—	33,793		32,330


thousands):
		No Expiration:
		Short-		Long-
		Term		Term		Total
Credit Opportunities Explorer Fund	$	364	$	746	$	1,110
Diversified Real Asset Fund		286,974		94,889		381,863
Dynamic High Yield Explorer Fund		476		785		1,261
Global Multi-Strategy Fund		20,690		—		20,690
Global Opportunities Equity Hedged Fund		427		547		974
Global Opportunities Fund		13,424		—		13,424
International Small Company Fund		2,553		—		2,553
Multi-Manager Equity Long/Short Fund		1,827		902		2,729
Opportunistic Municipal Fund		888		552		1,440
Origin Emerging Markets Fund		188,349		10,226		198,575
Small-MidCap Dividend Income Fund		21,824		25,127		46,951


		Utilized
Opportunistic Municipal Fund	$	425
Real Estate Debt Income Fund		1


		Accumulated			Accumulated
		Undistributed Net			Net Realized Gain
		Investment Income			on Investments			Paid in Capital
Blue Chip Fund	$	(2	)	$	(4,266	)	$	4,268
Credit Opportunities Explorer Fund		(24	)		23			1
Diversified Real Asset Fund		(18,892	)		14,320			4,572
Dynamic High Yield Explorer Fund		30			(30	)		—
Global Multi-Strategy Fund		1,754			(3,515	)		1,761
Global Opportunities Equity Hedged Fund		(8	)		8			—
Global Opportunities Fund		(683	)		683			—
International Small Company Fund		91			(91	)		—
Multi-Manager Equity Long/Short Fund		1,765			(1,765	)		—
Opportunistic Municipal Fund		(4	)		4			—
Origin Emerging Markets Fund		(1,342	)		1,341			1
Preferred Securities Fund		10,503			(10,502	)		(1	)
Real Estate Debt Income Fund		17			—			(17	)
Small-MidCap Dividend Income Fund		12,375			(19,822	)		7,447


		Unrealized		Unrealized			Net Unrealized			Cost for Federal
		Appreciation		(Depreciation)			Appreciation (Depreciation)			Income Tax Purposes
Blue Chip Fund	$	200,563	$	(24,812	)	$	175,751		$	1,157,125
Credit Opportunities Explorer Fund		308		(152	)		156			19,554
Diversified Real Asset Fund		106,090		(110,262	)		(4,172	)		3,784,933
Dynamic High Yield Explorer Fund		261		(310	)		(49	)		15,681
Global Multi-Strategy Fund		104,842		(56,770	)		48,072			3,193,490
Global Opportunities Equity Hedged Fund		439		(185	)		254			6,604
Global Opportunities Fund		91,482		(35,003	)		56,479			1,257,086
International Small Company Fund		7,737		(6,550	)		1,187			169,519
Multi-Manager Equity Long/Short Fund		10,529		(6,349	)		4,180			332,888
Opportunistic Municipal Fund*		8,550		(217	)		8,333			130,659
Origin Emerging Markets Fund		95,855		(29,445	)		66,410			710,751
Preferred Securities Fund		376,241		(61,840	)		314,401			5,442,272
Real Estate Allocation Fund		30		(2	)		28			903
Real Estate Debt Income Fund		3,523		(1,476	)		2,047			151,973
Small-MidCap Dividend Income Fund		378,420		(72,622	)		305,798			1,978,084

(i)	Perpetual security. Perpetual securities pay an indefinite stream of interest, but they may be called by the issuer at an earlier date.
(j)	Variable Rate. Rate shown is in effect at August 31, 2016.
(k)	Security is an Interest Only Strip.
(l)	Payment in kind; the issuer has the option of paying additional securities in lieu of cash.
(m)	Security or portion of the security was pledged as collateral for reverse repurchase agreements. At the end of the period, the value of these securities totaled $252,265 or 9.16% of net assets.
(n)	This Senior Floating Rate Note will settle after August 31, 2016, at which time the interest rate will be determined.
(o)	Security was purchased in a "to-be-announced" ("TBA") transaction. See Notes to Financial Statements for additional information.
(p)	Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the end of the period, the value of these securities totaled $750 or 0.03% of net assets.
(q)	Rate shown is the discount rate of the original purchase.
(r)	Security is a Principal Only Strip.
(s)	Although the maturity date of the repurchase agreement is open-ended through the maturity date of the collateral, the Fund has a right to terminate the repurchase agreement and demand repayment from the counterparty at any time with two days' notice or less. During periods of high demand for the collateral security, the fund may also pay the counterparty a fee.

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable.
(c)	Excludes expense reimbursement from Manager.
(d)	Period from September 30, 2013, date shares first offered, through August 31, 2014.
(e)	Total return amounts have not been annualized.
(f)	Computed on an annualized basis.
(g)	Period from September 10, 2014, date shares first offered, through August 31, 2015.
(h)	Total return is calculated using the traded net asset value which may differ from the reported net asset value. The traded net asset value is the net asset value which a shareholder would have paid or received from a subscription or redemption.

(a)	Calculated based on average shares outstanding during the period.
(b)	Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable.
(c)	Period from September 22, 2015, date shares first offered, through August 31, 2016.
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Excludes expense reimbursement from Manager.
(g)	Period from September 30, 2013, date shares first offered, through August 31, 2014.
(h)	Period from June 11, 2014, date shares first offered, through August 31, 2014.
(i)	During 2016, the Class experienced a significant withdrawal of monies by an affiliate. As the remaining shareholders held relatively small positions, the total return amounts expressed herein are less than those that would have been experienced without the withdrawal.

1)	With respect to Passport, the Board reviewed (i) the historical one-year and since inception (January 1, 2014) performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in a composite with an investment strategy similar to the proposed portfolio strategy for the Fund and (ii) the back-tested one-year, three-year and five-year performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in the proposed portfolio strategy for the Fund, each as compared to a relevant benchmark index for Passport’s investment sleeve, a relevant benchmark index for the Fund and a relevant Morningstar category;
2)	With respect to Sirios, the Board reviewed (i) the historical one-year and since inception (April 1, 2014) performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in a composite with an investment strategy similar to the proposed portfolio strategy for the Fund and (ii) the back-tested one-year, three-year and five-year performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in the proposed portfolio strategy for the Fund, each as compared to a relevant benchmark index for Sirios’ investment sleeve, a relevant benchmark index for the Fund and a relevant Morningstar category;
3)	With respect to Three Bridges, the Board reviewed (i) the historical since inception (November 1, 2014) performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in a composite with an investment strategy similar to the proposed portfolio strategy for the Fund and (ii) the back-tested one-year, three-year and five-year performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in the proposed portfolio strategy for the Fund, each as compared to a relevant benchmark index for Three Bridges’ investment sleeve, a relevant benchmark index for the Fund and a relevant Morningstar category; and
4)	With respect to CCI, the Board reviewed the back-tested one-year and since inception (October 1, 2013) performance returns as of September 30, 2015 (gross and net of fees) of the Subadvisor in the proposed portfolio strategy for the Fund, as compared to a relevant benchmark index for CCI’s investment sleeve, a relevant benchmark index for the Fund and a relevant Morningstar category.