ncsrfinalplanbook.htm - Generated by SEC Publisher for SEC Filing

Due to size constraints, this filing is being made in 2 (two) related submissions. This submission is the first of the two related submissions.

Principal Management Corporation, 711 High Street, Des Moines, IA 50392 (Name and address of agent for service)

The third-quarter U.S. Gross Domestic Product (GDP) report confirmed that the second-half rebound has begun, with decent report details and high frequency data suggesting the trend will continue for the rest of the year. Consumer spending grew, the labor market was robust and wages modestly accelerated. Inventories added 0.61 percentage points to growth. Exports increased sharply; goods exports surged 14.5% with a sharp rise in soybean exports. Gross private investment turned positive for the first time this year. Nonresidential structures spending jumped over 5%, the best pace in two years; intellectual property was up 4%; and equipment spending declined. This shift from hard to soft investment may be explained by rapidly expanding e-commerce and cost reducing innovations. (Source: Wall Street Journal). Residential investment has consistently disappointed this year, but, there are lots of reasons residential investment could pick up, including the rise in young adult employment, household incomes, household formation, and home ownership.

Growth is also picking up in Europe, Japan, and China. The Purchasing Managers Index (PMI) rose in both Germany and France, and the aggregate Eurozone economic confidence index increased to 106.3, the highest level since last November. Eurozone manufacturing capacity finally returned to pre-crisis averages, suggesting inflation could pick up modestly. Third-quarter GDP in the U.K. was better than expected, up 2.3% year-over-year, and in Japan, small and large business confidence indexes increased, and real consumer spending accelerated in September, while inflation remains weak. Reflation in China is providing a much needed boost to corporate profits, revenues, and nominal GDP.

The global economy is in a synchronized upturn that is becoming entrenched. There was some retreat in September, but since late 2015, there is a clear uptrend. This global growth bounce, driven by the stabilization of the dollar, stronger commodity prices, and a credit-fueled stimulus in China is expected to last for several more quarters. However, uncertainty remains related to China’s economy, the British exit from European Union, the Federal Reserve’s timing for raising rates, and the policies of the next U.S. President.

*All data cited from October 2016 Principal Economic Insights by Robert Baur, Ph.D., Robin Anderson, and the Economic Committee available at principalfunds.com/commentary.

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 J shares: contingent deferred sales charge of 1% on redemptions made during the first 18 months. Institutional and Class R Shares do not have a sales charge. See the prospectus for details. Performance listed with sales charge reflects the maximum sales charge.

* Performance assumes reinvestment of all dividends and capital gains. Extended performance is calculated based on the historical performance of the Fund’s oldest share class, adjusted for the fees and expenses of the share class shown. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.

** 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: Principal Global Investors, LLC

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

Principal California Municipal Fund seeks to provide as high a level of current income that is exempt from federal and state personal income tax as is consistent with prudent investment management and preservation of capital. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in California municipal obligations (securities issued by or on behalf of state or local governments and other public authorities) at the time of purchase. Generally, these municipal obligations pay interest that is exempt from state personal income tax and federal income tax.

Allocation to Escondido School District, Golden State Tobacco Securitization, and Loma Linda University Medical Center contributed to performance. Allocation to Virgin Islands, Adventist Health Systems, and Providence St. Joseph Health detracted from performance.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal Core Plus Bond Fund seeks to provide current income and, as a secondary objective, capital appreciation. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds or other debt securities at the time of purchase. Under normal circumstances, the Fund maintains an average portfolio duration that is within 25% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index.

Sector allocation and security selection contributed to performance. An out-of-index allocation to below investment-grade corporate bonds contributed. Underweight to U.S. Treasury securities and overweight to investment-grade corporate bonds contributed. Security selection within mortgage-backed securities and emerging market debt contributed. Duration and curve positioning detracted as the portfolio was short duration relative to the index during times of declining interest rates. Security selection within below investment-grade corporate bonds detracted. Security selection within investment-grade corporate bonds detracted.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal Diversified International Fund seeks long-term growth of capital. The Fund invests primarily in foreign equity securities. The Fund has no limitation on the percentage of assets that are invested in any one country or denominated in any one currency, but the Fund typically invests in foreign securities of at least 30 countries. The Fund invests in equity securities of small, medium, and large market capitalization companies.

Stock selection in the financials sector contributed, driven by overweight to Yes Bank Limited, one of the new generation private sector banks in India that is benefiting from a well-diversified corporate portfolio with strong asset quality. Stock selection in Canada contributed, led by an overweight to TransCanada Corporation, a leading energy infrastructure company. Stock selection in China contributed, led by overweight to TAL Education Group, a leading K-12 after-school tutoring services provider that benefitted from increases in their online enrollment. Stock selection in the United Kingdom detracted, led by an overweight position in U.K.-based homebuilder Taylor Wimpey plc. Stock selection in the consumer discretionary sector detracted, driven by overweight to Next Plc., a U.K. based apparel and home furnishings retailer. Overweight to JBS, a food company headquartered in Brazil, detracted.

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

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

Principal Equity Income Fund seeks to provide current income and long-term growth of income and capital. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying equity securities at the time of purchase. The Fund usually invests in equity securities of companies with large market capitalizations. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.

Applied Materials (AMAT) was a top contributor as a confluence of factors in its end markets led to record high sales and backlogs. Digital Realty Trust (DLR) contributed due in part to the accretive acquisition of TelX, which diversified its portfolio by expanding into the colocation and interconnection businesses, as well as the acquisition of eight facilities in Europe. Microchip Technology (MCHP) contributed as it saw improvements in end market demand and as a result of its acquisition of Atmel is expected to be more accretive than initially thought. Kinder Morgan (KMI) detracted as it was challenged by low energy prices, saw its credit rating outlook lowered, and cut its dividend. Teva Pharmaceutical Industries (TEVA) detracted as concerns regarding pricing erosion weighed on the generic business and partial invalidation of the patent protection on TEVA's multiple sclerosis drug increased the generic risk to TEVA's branded business. Kroger (KR) detracted as deflation in food prices hampered top-line growth.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

Sub-Advisors: Analytic Investors, Colonial First State Asset Management (Australia) Limited; DDJ Capital Management, LLC;

Logan Circle Partners, LP; Post Advisory Group, LLC; Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Reaves Asset Management; Spectrum Asset Management, Inc.; Stone Harbor Investment Partners, LP;

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

Principal Global Diversified Income Fund seeks income. The Fund generally invests a majority of its assets in fixed-income securities, such as high yield bonds (also known as "junk" bonds), preferred securities, commercial mortgage-backed securities, and emerging market debt securities, in an effort to provide incremental yields over a portfolio of government securities. In addition, it invests in equity securities to provide incremental dividend yields and diversify fixed-income related risks in the Fund.

Allocation to emerging market debt contributed as security selection in the hard currency sovereign and corporate allocations (mostly oil and gas companies), particularly in Europe, Middle East, and Africa contributed, the most. From an individual country perspective, overweights in Angola and several countries from sub-Saharan Africa, as well as Argentina, Ecuador, and Venezuela, contributed as did underweights in China, India, the Philippines, and Sri Lanka. Allocation to high yield bonds contributed to absolute returns, although the allocation lagged the benchmark for the period. Allocation to global infrastructure stocks contributed as security selection in the utilities (electric, water, and gas), telecom, and pipeline sectors were the largest contributors to performance. A number of infrastructure sectors delivered double digit returns over this period. The dividends paid by electric, gas, and water utilities became more attractive in a low bond yield environment. The Fund employs an equity volatility reduction overlay (EVRO) program, which writes option derivatives on the equity sleeves in the portfolio. The different option strategies employed by the EVRO program, generally performed as expected, and has reduced the portfolio volatility since the inception of the strategy in March 2016. Allocation to commercial mortgage-backed securities (CMBS) detracted as exposure to legacy AJ credit bonds and 2013-2014 vintage BBB-bonds were the top detractors. Overall performance was negative due to a combination of security selection and the yield curve where rates moved lower and the yield curve flattened on a portfolio that is short duration relative to the benchmark. Allocation to preferred securities was a drag on relative returns due to volatility in the European bank shares following the Brexit vote as well as weakness in the CoCos sector. Allocation to master limited partnerships (MLPs) detracted as underperformance was driven by negative security selection in the natural gas pipelines and processing subsectors.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Real Estate Investors, LLC

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

Principal Global Real Estate Securities Fund seeks to generate a total return. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of U.S. and non-U.S. companies principally engaged in the real estate industry at the time of purchase. For the Fund's investment policies, 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.

A modest underweight to Public Storage was a top contributor to relative performance, as the self-storage sector has been hit with ongoing concerns of growth deceleration and uncertainty over the impact of increasing supply. Underweight to British Land Company PLC was a top contributor, as the market began to price in signs that strong growth in London office values may be slowing. Overweight to Equinix contributed as its "first mover" advantage in the data center space resulted in many of its centers benefitting from irreplaceable "network effects" and serving as some of the most important internet exchange points in the world. Overweight to Great Portland Estates, Land Securities Group PLC, and UNITE Group detracted along with the rest of the U.K. office sector, as these stocks underperformed as the market priced in signs that the strong growth in London office values may be slowing.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

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

Principal Government & High Quality Bond Fund seeks a high level of current income consistent with safety and liquidity. The Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities issued by the U.S. government, its agencies or instrumentalities or securities that are rated AAA by S&P's Rating Service or Aaa by Moody's Investors Service, Inc., or, if unrated, in the opinion of the Sub-Advisor of comparable quality including but not limited to mortgage securities such as agency and non-agency collateralized mortgage obligations, and other obligations that are secured by mortgages or mortgage-backed securities at the time of purchase.

An out-of-benchmark allocation to agency collateralized mortgage obligation (CMO) aided performance. Allocation to nonagency commercial mortgage-backed securities (CMBS) contributed. Security selection in low-coupon agency mortgages contributed to performance. Allocation to agency commercial mortgage-backed securities hindered performance. Allocation to cash lagged during the year. Allocation to home equity asset-backed securities (ABS) constrained results.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal High Yield Fund seeks to provide a high level of current income. The Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds (sometimes called "high yield bonds" or "junk bonds") which are rated at the time of each purchase Ba1 or lower by Moody's and BB+ or lower by S&P. It also invests in bank loans (also known as senior floating rate interests) and securities of foreign issuers, including those located in developing or emerging countries.

Security selection contributed to performance. Overweight to the independent sector and underweight to the pharmaceuticals, healthcare, wirelines, and consumer cyclical services sectors contributed. Allocation to Chaparral Energy contributed driven by the improving commodity backdrop and improving expectations regarding their restructuring. Allocation to Everest ACQ LLC/Finance contributed as energy reported better than expected EBITDA, driven by production and costs; which were both better than expected. Allocation to Navios Maritime Holdings contributed due to the company's financial flexibility benefits from a diversified operating platform. Underweight to Valeant Pharmaceuticals contributed due to news that the company is looking to divest non-central assets. Allocation to Denbury Resources contributed due to the improving commodity backdrop. Overweight to the health insurance and life insurance sectors, as well as underweight to the oil field services, technology, and integrated sectors detracted. Allocation to Pinnacle Operating Corporation detracted due to rating agency downgrades at the end of September and heightened concerns regarding the company's liquidity, cash flows, and leverage. Allocation to MDC Partners detracted due to weak investor sentiment. Allocation to Centene Corp. detracted due to the announcement of additional issuance coming to the market. Underweight to Freeport-McMoran C & G detracted due to the announcement of another asset sale and copper prices perking up a bit. Allocation to Century Link detracted as bonds traded lower on the announcement that it is buying Level 3 Communications.

Investment Advisor: Principal Management Corporation Sub-Advisors: J.P. Morgan Investment Management, Inc.; Neuberger Berman Fixed Income, LLC

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

Principal High Yield Fund I seeks high current income. The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment-grade bonds (sometimes called "high yield bonds" or "junk bonds") which are rated at the time of each purchase Ba1 or lower by Moody's and BB+ or lower by S&P. It also invests in bank loans (also known as senior floating rate interests) and securities of foreign issuers.

Security selection within the electric utilities alongside an overall underweight to the energy sector contributed to performance relative to the Bloomberg Barclays U.S. High Yield 2% Issuer Capped Index. Specifically, underweight to independent energy companies proved beneficial while a slight overweight to companies that outperformed, as oil prices rose and stabilized later in the period, including Chesapeake Energy and EP Energy Corp, contributed. Overweight to midstream and underweight to insurance contributed. Overweight to Scientific Games Corporation aided results. Security selection was a drag on overall results with the largest impact from the communications and consumer non-cyclical subsectors. Active positions in several underperforming securities, including Cumulus Media, iHeartMedia, and CenturyLink detracted. Overweight to pharmaceutical companies Endo International and Valeant Pharmaceuticals, also detracted from results. Issue selection within the independent and midstream industries sub-sector detracted alongside underweight to the better performing metals & mining subsector. Overweight to Claire's, Inc. (retail) and allocation to bank loans hindered results as well.

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

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

Principal Income Fund seeks to provide a high level of current income consistent with preservation of capital. The Fund invests primarily in a diversified pool of fixed-income securities including corporate securities, U.S. government securities, and mortgage-backed securities, up to 35% of which may be in below investment-grade bonds which are rated at the time of purchase Ba1 or lower by Moody's and BB+ or lower by S&P. It maintains an average portfolio duration that is within 25% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index.

Allocation to high yield aided performance as credit spreads narrowed during the period. Issue selection within and underweight to U.S. Treasury aided results. Security selection and overweight to real estate investment trusts (REITS) contributed. Overweight to and issue selection within asset-backed securities (ABS) detracted from performance. Security selection in utilities hindered performance. Allocation to cash detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: BlackRock Financial Management, Inc.

Principal Inflation Protection Fund seeks to provide current income and real (after inflation) total returns. The Fund invests primarily in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, and U.S. and non-U.S. corporations. It normally maintains an average portfolio duration that is within 20% of the duration of the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index. The Fund also invests in foreign securities, U.S. Treasuries and agency securities.

Long New Zealand real rate positioning was a contributor. Within foreign exchange (FX), short Great Britain pound (GBP) vs Australian dollar (AUD) and Japanese yen (JPY) proved beneficial surrounding the U.K. referendum in late June. Long U.S. breakeven positioning was a detractor over the 12-month period but has been a contributor over the last four months. Additional detractors included the portfolio's aggregate Euro-area positioning and Japanese breakeven positioning.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal International Emerging Markets Fund 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 emerging market companies at the time of purchase. Emerging market country means any country which is considered to be an emerging country by the international financial community (including the MSCI Emerging Markets Index or Bloomberg Barclays Emerging Markets USD Aggregate Bond Index). It invests in equity securities of small, medium, and large market capitalization companies.

Overweight to Itausa, a Brazilian holding company with a key stake in the financial company Itau contributed. Allocation to Taiwan Semiconductor Manufacturing Co., the largest semiconductor foundry in the world, contributed. Allocation to Telekomunikasi Indonesia, the largest telecom operator in Indonesia, contributed. Significant detractors included underweight to Petrobras, Brazil's national oil company, and Banco Bradesco, the second largest private financial institution in Brazil. Overweight to PICC Property & Casualty Co., a leading property and casualty insurer with the largest market share in China, detracted.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Origin Asset Management, LLP

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

Principal International Fund I seeks long-term growth of capital. The Fund invests primarily in foreign equity securities. Usually, the Fund's investments are diversified across many different countries and regions, including countries with emerging markets. The Fund typically invests in foreign securities of at least ten countries. The Fund invests in equity securities of small, medium, and large market capitalization companies. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.

The most significant contribution came from information technology stocks, chiefly based in China, led by Sunny Optical, Netease, and Geely Automobile Holdings. At a regional level, Europe ex-U.K. proved most beneficial led by selection in the financials and health care sectors within the region. At a sector level, holdings in information technology were the most additive, as mentioned above predominantly through positions in China. Holdings in telecommunication services also contributed. The most significant detractor from performance came from securities the U.K., which suffered following the U.K.'s decision to exit the European Union. U.K. homebuilders were the hardest hit, with holdings such as Barratt Development, Berkeley Group Holdings, Persimmon, and Bellway detracting. Japanese securities also proved detrimental to relative performance, with industrial holdings in the country detracting the most, led by Central Japan Railway Company and Takeuchi Manufacturing Company. At a sector level, financials were the most significant detractor, led predominantly by names in Japan and China, with PICC Property and Casualty Co proving the single most challenging holding.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Columbus Circle Investors

Principal LargeCap Growth Fund 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 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.

Ulta Salon, Cosmetics, and Fragrances contributed due to comparable store sales. FleetCor Technologies contributed based on a significant outsourcing deal with Speedway, the number five fuel retailer, better than expected accretion potential from a recent Brazilian acquisition, and improved core operating trends from increased usage and higher energy prices. Lam Research contributed as a result of strong shipments associated with memory customer spending, particularly within segments focused on next generation 3D NAND technology. Bristol Myers Squibb detracted as it suffered from the failure of its immune oncology drug Opdivo to meet its primary clinical trial endpoint for the treatment of lung cancer. Gilead Sciences detracted as a result of media coverage of industry pricing, which seems egregious on the surface and could face increased controls and regulations that would adversely impact growth. An out-of-benchmark allocation to Royal Caribbean detracted as a result of uncertainty in cruise yields from China and European macro uncertainty.

Investment Advisor: Principal Management Corporation
Sub-Advisors: Brown Advisory, LLC; T. Rowe Price Associates, Inc.

Principal LargeCap Growth Fund I 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 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.

Selection within and an overweight to information technology added value. Selection within telecom was beneficial. Holding less risky securities (in terms of debt to equity levels) than the index, contributed. Both sub-advisors fell behind the index. Selection within industrials, especially commercial services and supplies, detracted from relative performance. Overweight to health care detracted as this was the second worst performing sector within the index.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

Sub-Advisors: American Century Investment Management, Inc.; Sawgrass Asset Management, LLC

Principal LargeCap Growth Fund II 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 large market capitalizations at the time of purchase. 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.

Stock selection within the consumer discretionary sector contributed to returns as the stocks in the portfolio performed better than the stocks in the index. Individual stock selection within the energy sector added value. The Fund’s lower price volatility (holding stocks that experienced less price movement that those within the index) contributed. Stock selection diminished returns overall, led by the information technology sector. Both sub-advisors (American Century Investment Management, Inc. and Sawgrass Asset Management, LLC) underperformed in the index. The Fund's lower beta (a measure of a stock's volatility in relation to the market) detracted from returns.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LargeCap S&P 500 Index Fund 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 that compose the S&P 500 Index at the time of purchase.

The Fund was in line with the S&P 500 index. Eight of the 10 economic sectors posted positive returns with the utilities and information technology sectors providing the largest positive returns. NVIDIA Corporation, Newmont Mining Corporation, and Applied Materials contributed. The consumer discretionary and health care sectors recorded the worst returns during the period. Chipotle Mexican Grill, Perrigo Co, and Endo International detracted.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LargeCap Value Fund 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 large market capitalizations at the time of purchase. For this Fund, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000 Value Index. It invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.

Overweight to Tyson Foods contributed, driven by better than expected margins in their chicken production segment due to aggressive cost cutting. Overweight to Public Service Enterprise Group Inc., the largest electric and gas distribution and transmission utility company in New Jersey, contributed driven by mild weather impacts and improved wholesale power prices. Overweight to Everest Re Group, a global property & casualty reinsurance and diversified insurance company based in Bermuda, contributed as lower than expected catastrophe losses and better core underwriting results in reinsurance drove performance. Overweight to Noble Corporation, a leading offshore driller operating drillships, high-spec jack-ups, and semisubmersibles around the globe, detracted driven by the announcement that RDS had terminated the contract for one of their drillships. Overweight to Murphy Oil Corporation, a global exploration & production company with operations in Canada and Malaysia, as well as offshore U.S., detracted. Overweight to Tesoro Corporation, an independent refiner and marketer of petroleum products with a presence throughout the western U.S., detracted as a result of the volatility in energy prices.

Investment Advisor: Principal Management Corporation Sub-Advisors: Barrow, Hanley, Mewhinney & Strauss, LLC; Westwood Management Corporation

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

Principal LargeCap Value Fund III 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 companies with large market capitalizations at the time of purchase. For this Fund, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000 Value Index. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.

Stock selection within consumer discretionary added value. Underweight to financials was beneficial as this was the second worst performing sector in the index. The portfolio's lower price volatility contributed to performance. Selection within banks detracted from performance. Underweight to utilities held back returns. Both sub-advisors (Barrow, Hanley, Mewhinney & Strauss, LLC and Westwood Management Corporation) fell behind the index.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal MidCap Fund 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 medium market capitalizations at the time of purchase.

TransDigm, a supplier of an extensive collection of mostly proprietary air plane components found in nearly all military and commercial aircrafts, contributed in part due to strong results in its aftermarket business. Aon, the world's largest insurance broker and a leading human resources consulting firm, contributed due to the company's solid results that showed strong organic growth with improving margins. S&P Global, a collection of high-margin, low-capital businesses with strong competitive positions, contributed largely due to higher levels of debt issuance in response to the current low interest rate environment. Airgas, the largest distributor of industrial, medical, and specialty gases in the U.S., which also supplies hard goods such as welding equipment, contributed in part due to the agreement of Air Liquide to acquire Airgas for a significant premium. Ross Stores, the second largest off-price retailer in the U.S. contributed due to executing well on its strategy over the last year. LPL, a one-stop shop service for independent financial advisors detracted, due to concerns about the impact of market volatility on earnings, as well as uncertainty regarding the final ruling from the Department of Labor on requiring advisors to meet the fiduciary standard when providing advice on retirement money. CBRE Group, the largest commercial real estate services firm in the world, detracted due to fears that weakness in key markets would lower near-term earnings. Signet Jewelers, the largest jeweler by volume in the U.S., marketing primarily to the middle-class consumer through its Kay's Jewelers, Jared, and Zales brands, detracted as concerns increased related to its financing business. Liberty Interactive, which owns the leading worldwide home shopping network, QVC, and an economic interest in their primary competitor HSN, detracted as QVC experienced a slowdown in sales growth during the summer months. CarMax, the largest used car retailer in the U.S. with more than 140 stores in operation, detracted as growth in same store sales slowed.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Columbus Circle Investors

Principal MidCap Growth Fund 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 medium market capitalizations at the time of purchase. For this Fund, companies with medium market capitalizations are those with market capitalizations within the range of companies comprising the Russell Midcap Growth Index.

IDEXX Laboratories contributed due to strength in the veterinary market. Ulta Salon, Cosmetics, and Fragrance contributed due to strong financial results driven by better than expected customer traffic and sales growth, as well as new store openings. Burlington Stores contributed as it benefited from favorable purchases of inventory, higher wages for its consumers, and better product mix. Harman International detracted as the professional division underperformed due to volatility in foreign exchange markets hurting the company's competitiveness in certain geographies. Middleby Corporation detracted due to concerns related to legacy product disruption and recall issues at the Viking residential division, as well as fears of slowing growth in commercial foodservice due to slowing restaurant sales trends. Kate Spade & Company detracted due to disappointing comparable store sales and operating margins, which were impacted by continued weak tourist volumes, less compelling new products, and market conditions within the handbag category turning less favorable.

Investment Advisor: Principal Management Corporation
Sub-Advisors: Robert W Baird & Co., Inc.; William Blair & Co., LLC.

Principal MidCap Growth Fund III 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 medium market capitalizations at the time of each purchase. It 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.

Stock selection within the consumer discretionary sector added value. Overweight to information technology, especially internet software and services, contributed to performance. Holding less risky securities (in terms of debt to equity levels) than the index, contributed. Both sub-advisors (Robert W Baird & Co., Inc. and William Blair & Co., LLC.) underperformed the index. Stock selection within information technology sector, in particular semiconductors, detracted. Underweight to consumer staples also detracted.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal MidCap S&P 400 Index Fund normally invests the majority of assets in common stocks of companies that compose the S&P MidCap 400 Index. Management attempts to mirror the investment performance of the index by allocating assets in approximately the same weightings as the S&P MidCap 400 Index.

The Fund was in line with the S&P 400 index. Seven of the 10 economic sectors in the index posted positive returns with the utilities and materials sectors providing the largest positive returns. Advanced Micro Devices, DreamWorks Animation, and Computer Sciences Corporation contributed. The telecommunication services and energy sectors recorded the worst returns during the period. Office Depot, Noble Corporation, and Ascena Retail Group detracted from performance.

Sub-Advisors: Los Angeles Capital Management and Equity Research, Inc.; Victory Capital Management

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

Principal MidCap Value Fund I 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 medium market capitalizations at the time of purchase. It invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Fund also invests in real estate investment trusts, and actively trades portfolio securities.

A slight underweight to and selection within the energy sector added value. Selection within the consumer staples sector contributed, especially within the food product industry. Underweight to the real estate sector contributed. Overall selection was a drag on returns as individual stock selection within financials diminished returns. Overweight to the health care sector was a further detriment to performance. The lower price volatility of the option compared to the index detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation Sub-Advisors: Barrow, Hanley, Mewhinney & Strauss, LLC; Principal Global Investors, LLC

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

Principal MidCap Value Fund III 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 medium market capitalizations at the time of purchase. It invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Fund invests in real estate investment trusts (REITs).

Stock selection in the consumer staples and telecommunication services sectors contributed the most. Overweight to ONEOK, Inc., which is engaged in the gathering, processing, storage, and transportation of natural gas in the U.S., contributed as energy prices rebounded. Overweight to Tyson Foods contributed driven by better than expected margins in their chicken production segment as a result of aggressive cost cutting. Overweight to Ingredion Incorporated, a global manufacturer of starch and sweetener ingredients for food, beverage, brewing, industrial, and pharmaceutical customers, contributed due to strong growth in their North American sales coupled with record high margins. Overweight to Diamond Offshore Drilling, Inc., a leading offshore drilling service company, providing contract drilling services around the world with a total fleet of 30 drilling rigs, including one under construction for delivery in mid-2016, detracted as energy price volatility weighed on the security. Overweight to Jones Lang LaSalle Inc., a global property services companies with approximately 200 offices in 70 countries supporting several major commercial real estate service lines, detracted as growing expenses compressed margins and currency movements provided headwinds. Overweight to Noble Corporation, a leading offshore driller operating drillships, high-spec jackups, and semisubmersibles around the globe, detracted due to the mid-December announcement that RDS had terminated the contract for one of their drillships a year early.

*** Extended performance is calculated based on the historical performance of the Fund’s R-3 share class, adjusted for the fees and expenses of the

Investment Advisor: Principal Management Corporation Sub-Advisors: Barrow, Hanley, Mewhinney & Strauss, LLC; Causeway Capital Management, LLC

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

Principal Overseas Fund 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 foreign companies at the time of each purchase. It invests in emerging market countries. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. It invests in equity securities of small, medium, and large market capitalization companies.

Barrow, Hanley, Mewhinney & Strauss, LLC contributed. Stock selection within telecom contributed to performance. Underweight to financials was rewarded as this sector was the second worst performer in the index. Causeway Capital Management, LLC detracted. Selection within materials detracted from relative performance. Overweight to pharmaceuticals detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal Capital Appreciation Fund seeks to provide long-term growth of capital. The Fund invests primarily in equity securities of companies with any market capitalization, but has a greater exposure to large market capitalization companies than small or medium market capitalization companies. It invests in equity securities with value and/or growth characteristics and constructs an investment portfolio that has a "blend" of equity securities with these characteristics. Investing in value equity securities is an investment strategy that emphasizes buying equity securities that appear to be undervalued.

Waste Connections (WCN) contributed due to its well-received merger with Progressive Waste Solutions in an all-stock deal as management has a successful mergers & acquisitions (M&A) track record and significant synergies are being realized. Xcel Energy (XEL) contributed as it benefitted from increased interest in utilities as investors sought safety and yield, as well as outperforming relative to the industry thanks to regulatory wins. Northrop Grumman (NOC) was a top contributor due to wider margins, a Department of Defense budget resolution, and a long-range strike bomber contract win. Allergan (AGN) detracted as it was negatively impacted by the U.S. Treasury Department's introduction of new inversion regulations, which effectively ended merger plans with Pfizer. HollyFrontier (HFC) detracted as tighter refining margins weighed on profitability. Perrigo (PRGO) detracted due to generic drug pricing pressure, departure of the long-time CEO, and a rocky integration of Omega, the branded consumer health care business it acquired in 2014.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LifeTime 2010 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2010. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Underweight to short-term bonds was beneficial, as interest rates generally trended downward - this benefitted intermediate-term bonds to a greater extent than short-term bonds. Active manager performance from the Principal Core Plus Bond Fund (sub-advised by Principal Global Investors, LLC) was a positive for the year.

Style selection of real assets was a detractor, as global real estate investment trusts (REITs) and other diversified real assets significantly lagged the domestic REIT exposure of the S&P Target Date Indexes. Manager performance of the Global Real Estate Securities Fund (sub-advised by Principal Real Estate Investors, LLC), and the Diversified Real Asset Fund (multiple sub-advisors) also detracted. Furthermore, manager performance in U.S. equities was poor in general, but specifically the LargeCap Growth Fund I (co-sub-advised by T. Rowe Price Associates, Inc. and Brown Advisory, LLC), LargeCap Value Fund (sub-advised by Principal Global Investors, LLC), and several mid- and small-cap managers within the portfolio detracted overall.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal LifeTime 2015 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2015. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LifeTime 2020 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2020. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LifeTime 2025 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2025. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal LifeTime 2030 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2030. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal LifeTime 2035 Fund seeks a total return consisting of long-term growth of capital and current income. The fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2035. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LifeTime 2040 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2040. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal LifeTime 2045 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2045. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LifeTime 2050 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2050. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal LifeTime 2055 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2055. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal LifeTime 2060 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2060. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

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

Principal LifeTime Hybrid 2015 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2015. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2020 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2020. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2025 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2025. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2030 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2030. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2035 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2035. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2040 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2040. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2045 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2045. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2050 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2050. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2055 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2055. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid 2060 Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year 2060. It is a fund of funds and invests in Principal Funds, Inc. Institutional Class shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

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

Principal LifeTime Hybrid Income Fund seeks current income, and as a secondary objective, capital appreciation. The Fund is a fund of funds that invests in Principal Funds, Inc. Institutional Class shares which consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. Its asset allocation is designed for investors who are approximately 15 years beyond the normal retirement age of 65.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisors: Principal Global Investors, LLC

Principal LifeTime Strategic Income Fund seeks current income, and as a secondary objective, capital appreciation. The Fund is a fund of funds that invests in Principal Funds, Inc. Institutional Class shares which consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. Its asset allocation is designed for investors who are approximately 15 years beyond the normal retirement age of 65.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Real Estate Investors, LLC

Principal Real Estate Securities Fund seeks to generate a total return. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry at the time of each purchase. It invests in equity securities of small, medium, and large market capitalization companies. The Fund concentrates its investments (invest more than 25% of its net assets) in securities in the real estate industry. It is non-diversified.

Underweight to Public Storage contributed due to concerns over accelerating growth deceleration, driven by limited occupancy potential, peaking rental pricing power, back to normal expense run rate, and uncertain impact from increasing new supply. Overweight to EPR Properties contributed as a result of expectations of a slower pace of interest rate hiking and successful financing progress around the Adelaar project. An overweight to Equinix was a top contributor to performance as a result of many of its centers benefitting from irreplaceable "network effects" serving as some of the most important internet exchange points in the world. Overweight to Pebblebrook Hotels detracted as a result of a lower outlook on hotel fundamentals. Lack of allocation to Digital Realty Trust, Inc. detracted as data center owners have been some of the best performers in the real estate market during this period. Overweight to SL Green Realty Corp detracted due to a shift in sentiment on NYC office space.

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

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

Principal SAM Balanced Portfolio seeks to provide as high a level of total return (consisting of reinvested income and capital appreciation) as is consistent with reasonable risk. The Fund operates as a fund of funds. It generally invests: between 20% and 60% of its assets in fixed-income funds, and less than 40% in any one fixed-income fund; between 40% and 80% of its assets in equity funds that invest in small, medium, and large market capitalization companies, and less than 30% in any one equity fund; and less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund. The Fund invests in the Institutional shares of other series of Principal Funds, Inc. and in Principal Exchange-Traded Funds. The Fund also invests in other publicly traded investment funds.

Strong security selection in mid-cap growth equities was the largest contributor to performance. Strategic and tactical allocation to international emerging market equities, which outperformed their U.S. counterparts, aided performance. Strategic and tactical overweight to high yield bonds contributed as the asset class enjoyed the risk-on environment.

Security selection in large-cap value equities was the largest detractor from performance. Security selection in mid-cap value equities hindered performance. Strategic and tactical allocation to real estate investment trusts (REITs) in recent months detracted, offsetting gains earlier in the period.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

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

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

Principal SAM Conservative Balanced Portfolio seeks to provide a high level of total return (consisting of reinvestment of income and capital appreciation), consistent with a moderate degree of principal risk. The Fund operates as a fund of funds. It generally invests: between 40 percent and 80 percent of its assets in fixed-income funds, and less than 40 percent in any single fixed income fund; between 20 percent and 60 percent of its assets in equity funds, and less than 30 percent in any single equity fund; and less than 20 percent of its assets in specialty funds, and less than 20 percent in any single specialty fund. The Fund invests in the Institutional shares of other series of Principal Funds, Inc. and in Principal Exchange-Traded Funds. The Fund also invests in other publicly traded investment funds.

Strategic and tactical overweight to high yield bonds was the largest contributor to performance as the asset class enjoyed the risk-on environment. Strong security selection in mid-cap growth equities aided performance. Strategic and tactical allocation to international emerging market equities, which outperformed their U.S. counterparts, contributed.

Security selection in large-cap value equities was the largest detractor. Tactical overweight to equities, underweight to fixed income, and overweight to alternatives and specialty securities hindered performance as alternative and specialty securities underperformed equities and fixed income. Security selection in mid-cap value equities detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

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

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

Principal SAM Conservative Growth Portfolio seeks to provide long-term capital appreciation. The Fund operates as fund of funds. It generally invests: between 0% and 40% of its assets in fixed-income funds, and less than 30% in any one fixed-income fund; between 60% and 100% of its assets in equity funds that invest in small, medium, and large market capitalization companies, and less than 40% in any one equity fund; and less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund. The Fund invests in the Institutional and R-6 shares of other series of Principal Funds, Inc. and in Principal Exchange-Traded Funds. The Fund also invests in other publicly traded investment funds.

Strong security selection in mid-cap growth equities was the largest contributor to performance. Strategic and tactical allocation to international emerging market equities, which outperformed their U.S. counterparts, aided performance. Strategic and tactical allocation to international developed market equities, which underperformed their U.S. counterparts, contributed

Security selection in large-cap value equities was the largest detractor from performance. Tactical underweight to equities, underweight to fixed income and overweight to alternatives and specialty securities hindered performance as alternative and specialty securities underperformed equities and fixed income. Security selection in mid-cap value equities, which outperformed most other equity asset classes, detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

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

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

Principal SAM Flexible Income Portfolio seeks to provide a high level of total return (consisting of reinvestment of income with some capital appreciation). The Fund operates as a fund of funds. It generally invests: between 55% and 95% of its assets in fixed-income funds, and less than 40% in any one fixed-income fund; between 5% and 45% of its assets in equity funds, and less than 30% in any one equity fund; and less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund. The Fund invests in the Institutional shares of other series of Principal Funds, Inc. and in Principal Exchange-Traded Funds. The Fund also invests in other publicly traded investment funds.

Strategic and tactical overweight to high yield bonds was the largest contributor to performance as the asset class enjoyed the risk-on environment. Strategic and tactical underweight to government bonds, which underperformed other fixed income asset classes, aided performance. Strong security selection in mid-cap growth equities contributed.

Security selection in large-cap value equities was the largest detractor from performance. Security selection in treasury inflation protected securities (TIPS) hindered performance. Security selection in commercial mortgage-backed securities (CMBS) detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

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

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

Principal SAM Strategic Growth Portfolio seeks to provide long-term capital appreciation. The Fund operates as a fund of funds. It generally invests between 75% and 100% of its assets in equity funds that invest in small, medium, and large market capitalization companies, and less than 50% in any one equity fund; less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund. The Fund invests in the Institutional and R-6 shares of other series of Principal Funds, Inc. and in Principal Exchange-Traded Funds. The Fund also invests in other publicly traded investment funds.

Strategic and tactical allocation to international emerging market equities, which outperformed their U.S. counterparts, was the largest contributor to performance. Strong security selection in mid-cap growth equities aided performance. Strategic and tactical allocation to mid-cap value equities, which outperformed most other equity asset classes, contributed.

Security selection in large-cap value equities was the largest detractor from performance. Security selection in mid-cap value equities hindered performance. Strategic and tactical overweight to real estate investment trusts (REITs) in recent months detracted, offsetting gains earlier in the period.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

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

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

Principal Short-Term Income Fund seeks as high a level of current income as is consistent with prudent investment management and stability of principal. The Fund invests primarily in high quality short-term bonds and other fixed-income securities that, at the time of purchase, are rated BBB- or higher by Standard & Poor's Rating Service or Baa3 or higher by Moody's Investors Service, Inc. or, if unrated, in the opinion of the Sub-Advisor of comparable quality. It maintains an effective maturity of five years or less and an average portfolio duration that is within 15% of the duration of the Bloomberg Barclays Credit 1-3 Year Index.

Security selection in energy helped performance. Lack of allocation to any supranationals aided results. Issue selection in U.S. Government agency debt aided performance. Allocation to commercial mortgage-backed securities (CMBS) constrained results. Underweight to energy hindered performance. Overweight to insurance detracted.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal SmallCap Fund 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 purchase. For this Fund, companies with small market capitalizations are those with market capitalizations within the range of companies comprising the Russell 2000 Index.

Stock selection in the financials and health care sectors contributed the most to performance. The five individual stocks contributing most to the portfolio were PRA Health Sciences, a firm that conducts clinical trials for the biotechnology and pharmaceutical industries, chemical company Trinseo, Insperity, a leading provider of human resource solutions to small and medium-sized businesses, premier ski resort operator Vail Resorts, and MasTec, a provider of construction and installation services for communication companies and utilities. Stock selection in the information technology, consumer staples, and consumer discretionary sectors detracted the most from performance. The five individual stocks whose performance detracted most from the portfolio were office product retailer Office Depot, Manhattan Associates, which provides retailers and wholesalers with software systems for supply-chain management, NetScout Systems, which provides software and hardware that monitors and manages network performance for telecom and cable service providers, Red Robin Gourmet Burgers, and food retailer and wholesaler SUPERVALU.

Investment Advisor: Principal Management Corporation Sub-Advisors: AllianceBernstein, LP; Brown Advisory, LLC; Emerald Advisors, Inc.

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

Principal SmallCap Growth Fund I 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 purchase. For this Fund, companies with small market capitalizations are those with market capitalizations equal to or smaller than the greater of: 1) $6.0 billion or 2) the highest market capitalization of the companies comprising the Russell 2000 Growth Index.

AllianceBernstein, LP and Brown Advisory, LLC outpaced the index. Overall stock selection contributed to performance, especially within the health care sector. Sector allocation added value overall, including an overweight to information technology. Emerald Advisors, Inc. fell behind the index, detracting from overall performance. Underweight to the real estate sector was not rewarded over the past year as this was the top performing sector in the index. Selection within the materials sector was a further drag on returns.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

Principal SmallCap S&P 600 Index Fund seeks long-term growth of capital and normally invests the majority of assets in common stocks of companies that compose the S&P SmallCap 600 Index. Management attempts to mirror the investment performance of the index by allocating assets in approximately the same weightings as the S&P 600 Index.

The Fund was in line with the S&P 600 Index. Eight of the 10 economic sectors in the index posted positive returns during the year with the information technology and utilities sectors providing the largest positive returns. Chemours Co, U.S. Silica Holdings, and Lumentum Holdings contributed. The energy and consumer discretionary sectors recorded the worst returns during the period. Virtusa Corporation, Bristow Group, and First NBC Bank Holding detracted from performance.

Sub-Advisors: Dimensional Fund Advisors, LP; Los Angeles Capital Management and Equity Research, Inc.; Vaughan Nelson Investment Management, LP

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

Principal SmallCap Value Fund II 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 purchase. It invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Fund also invests in real estate investment trusts (REITs).

Average overweight to materials added value as this was the top performing sector in the index. Stock selection within health care was beneficial. Selection within energy, in particular the energy equipment and services industry, contributed. All three sub-advisors (Dimensional Fund Advisors, LP, Los Angeles Capital Management and Equity Research, Inc., and Vaughan Nelson Investment Management, LP) fell behind the benchmark, led by Vaughan Nelson Investment Management, LP. Stock selection was the primary driver of underperformance, especially within the consumer discretionary sector. Underweight to dividend yielding stocks detracted from performance.

*** Extended performance is calculated based on the historical performance of the Fund’s Institutional share class, adjusted for the fees and expenses of the share class shown.

Investment Advisor: Principal Management Corporation
Sub-Advisor: Principal Global Investors, LLC

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

Principal Tax-Exempt Bond Fund seeks to provide a high level of income that is exempt from federal income tax while protecting investors' capital. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in tax-exempt bonds (securities issued by or on behalf of state or local governments and other public authorities) at the time of purchase. It also invests in inverse floating rate obligations, which are generally more volatile than other types of municipal obligations and may involve leverage.

Allocation to Mohegan Tribal Finance, Pennsylvania State Turnpike, and Golden State Tobacco Securitization contributed to performance. Allocation to Louisiana Pellets-State Public Authority Solid Waste Disposal, Virgin Islands, and Chicago Board of Education detracted from performance.

*** Extended performance is calculated based on the historical performance of the Fund’s Class A share class, adjusted for the fees and expenses of the share class shown.


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



		California			Core Plus			Diversified
Amounts in thousands, except per share amounts	Municipal Fund				Bond Fund			International Fund
Investment in securities--at cost	$	454,180		$	4,266,602		$	7,407,886
Foreign currency--at cost	$	–		$	768		$	–
Assets
Investment in securities--at value	$	472,686		$	4,323,255		$	7,973,525
Foreign currency--at value		–			754			–
Cash		6,525			443			211
Receivables:
Dividends and interest		5,437			29,577			30,147
Expense reimbursement from Manager		8			–			7
Expense reimbursement from Distributor		–			2			2
Foreign currency contracts		–			1,461			–
Fund shares sold		3,695			5,320			3,052
Investment securities sold		–			5,485			36,551
Variation margin on financial derivative instruments		–			265			–
Other assets		–			7			5
Total Assets		488,351			4,366,569			8,043,500
Liabilities
Accrued management and investment advisory fees		175			1,684			5,597
Accrued administrative service fees		–			6			5
Accrued distribution fees		112			60			92
Accrued service fees		–			26			29
Accrued transfer agent fees		37			110			229
Accrued directors' expenses		1			5			11
Accrued professional fees		26			37			24
Accrued other expenses		26			33			466
Payables:
Deferred foreign tax		–			–			1,521
Dividends payable		872			4,486			–
Expense reimbursement to Manager		–			7			–
Foreign currency contracts		–			4			–
Fund shares redeemed		1,004			1,424			2,344
Interest expense and fees payable		21			–			–
Investment securities purchased		5,386			343,000			41,117
Variation margin on financial derivative instruments		–			34			–
Floating rate notes issued		18,241			–			–
Total Liabilities		25,901			350,916			51,435
Net Assets Applicable to Outstanding Shares	$	462,450		$	4,015,653		$	7,992,065
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	475,440		$	4,085,771		$	7,856,529
Accumulated undistributed (overdistributed) net investment income (loss)		1,078			7,877			101,779
Accumulated undistributed (overdistributed) net realized gain (loss)		(32,574	)		(135,125	)		(529,456	)
Net unrealized appreciation (depreciation) of investments		18,506			55,702			564,118
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			1,428			(905	)
Total Net Assets	$	462,450		$	4,015,653		$	7,992,065
Capital Stock (par value: $.01 per share):
Shares authorized		600,000			1,060,000			1,825,000
Net Asset Value Per Share:
Class A: Net Assets	$	334,431		$	95,813		$	221,880
Shares Issued and Outstanding		31,325			8,674			19,553
Net Asset Value per share	$	10.68		$	11.05		$	11.35
Maximum Offering Price	$	11.10		$	11.48		$	12.01
Class C: Net Assets	$	48,468		$	9,228		$	13,511
Shares Issued and Outstanding		4,531			835			1,196
Net Asset Value per share	$	10.70	^(a)	$	11.05	^(a)	$	11.30	^(a)
Class J: Net Assets		N/A		$	157,791		$	164,531
Shares Issued and Outstanding					14,192			14,647
Net Asset Value per share				$	11.12	^(a)	$	11.23	^(a)
Class P: Net Assets	$	73,780			N/A		$	6,566
Shares Issued and Outstanding		6,912						582
Net Asset Value per share	$	10.67					$	11.28
Institutional: Net Assets	$	5,771		$	3,630,319		$	7,449,362
Shares Issued and Outstanding		540			328,825			657,921
Net Asset Value per share	$	10.68		$	11.04		$	11.32
R-1: Net Assets		N/A		$	5,354		$	4,570
Shares Issued and Outstanding					485			405
Net Asset Value per share				$	11.04		$	11.28
R-2: Net Assets		N/A		$	10,445		$	5,778
Shares Issued and Outstanding					956			514
Net Asset Value per share				$	10.93		$	11.25
R-3: Net Assets		N/A		$	26,396		$	27,288
Shares Issued and Outstanding					2,405			2,417
Net Asset Value per share				$	10.98		$	11.29
R-4: Net Assets		N/A		$	21,651		$	36,763
Shares Issued and Outstanding					1,935			3,209
Net Asset Value per share				$	11.19		$	11.46
R-5: Net Assets		N/A		$	58,656		$	61,816
Shares Issued and Outstanding					5,338			5,403
Net Asset Value per share				$	10.99		$	11.44


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



					Finisterre
					Unconstrained
					Emerging Markets		Global Diversified
Amounts in thousands, except per share amounts	Equity Income Fund				Bond Fund		Income Fund
Investment in securities--at cost	$	3,681,556		$	24,114	$	11,183,475
Foreign currency--at cost	$	–		$	17	$	42,404
Assets
Investment in securities--at value	$	5,386,271		$	24,127	$	11,201,195
Foreign currency--at value		–			16		42,404
Cash		–			2,146		54,716
Deposits with counterparty		–			84		55,562
Receivables:
Dividends and interest		8,385			318		118,191
Expense reimbursement from Manager		–			20		–
Foreign currency contracts		–			22		7,007
Fund shares sold		1,274			–		65,773
Interfund lending		–			–		505
Investment securities sold		5,193			117		73,593
OTC swap agreements--at value (premiums paid $0, $279 and $0)		–			280		–
Other assets		2			–		–
Total Assets		5,401,125			27,130		11,618,946
Liabilities
Accrued management and investment advisory fees		2,329			22		6,786
Accrued administrative service fees		7			–		–
Accrued distribution fees		363			–		2,511
Accrued service fees		45			–		–
Accrued transfer agent fees		365			1		1,738
Accrued directors' expenses		4			–		14
Accrued professional fees		21			26		52
Accrued other expenses		101			12		446
Payables:
Dividends payable		–			84		42,789
Foreign currency contracts		–			19		2,038
Fund shares redeemed		2,505			–		25,632
Investment securities purchased		5,452			1,528		320,014
Options and swaptions contracts written (premiums received $0, $0 and $39,002)		–			–		21,574
OTC swap agreements--at value (premiums received $0, $69 and $499)		–			50		511
Variation margin on financial derivative instruments		–			4		17
Total Liabilities		11,192			1,746		424,122
Net Assets Applicable to Outstanding Shares	$	5,389,933		$	25,384	$	11,194,824
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	3,554,492		$	25,000	$	11,391,790
Accumulated undistributed (overdistributed) net investment income (loss)		35,010			83		60,394
Accumulated undistributed (overdistributed) net realized gain (loss)		95,716			238		(297,227	)
Net unrealized appreciation (depreciation) of investments		1,704,715			60		35,192
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			3		4,675
Total Net Assets	$	5,389,933		$	25,384	$	11,194,824
Capital Stock (par value: $.01 per share):
Shares authorized		1,700,000			300,000		1,850,000
Net Asset Value Per Share:
Class A: Net Assets	$	891,633		$	101	$	2,088,052
Shares Issued and Outstanding		33,410			10		152,184
Net Asset Value per share	$	26.69		$	10.14	$	13.72
Maximum Offering Price	$	28.24		$	10.54	$	14.25
Class C: Net Assets	$	181,177			N/A	$	2,417,920
Shares Issued and Outstanding		6,950					177,255
Net Asset Value per share	$	26.07	^(a)			$	13.64	^(a)
Class P: Net Assets	$	131,759		$	102	$	2,823,066
Shares Issued and Outstanding		4,936			10		206,812
Net Asset Value per share	$	26.69		$	10.15	$	13.65
Institutional: Net Assets	$	3,973,961		$	25,181	$	3,865,786
Shares Issued and Outstanding		148,735			2,480		282,916
Net Asset Value per share	$	26.72		$	10.15	$	13.66
R-1: Net Assets	$	1,987			N/A		N/A
Shares Issued and Outstanding		74
Net Asset Value per share	$	26.60
R-2: Net Assets	$	5,036			N/A		N/A
Shares Issued and Outstanding		188
Net Asset Value per share	$	26.68
R-3: Net Assets	$	58,084			N/A		N/A
Shares Issued and Outstanding		2,183
Net Asset Value per share	$	26.61
R-4: Net Assets	$	46,986			N/A		N/A
Shares Issued and Outstanding		1,763
Net Asset Value per share	$	26.65
R-5: Net Assets	$	99,310			N/A		N/A
Shares Issued and Outstanding		3,721
Net Asset Value per share	$	26.69


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



	Global Real Estate				Government & High
Amounts in thousands, except per share amounts	Securities Fund				Quality Bond Fund			High Yield Fund
Investment in securities--at cost	$	2,946,018		$	1,553,244		$	3,618,460
Foreign currency--at cost	$	37,176		$	–		$	31
Assets
Investment in securities--at value	$	3,129,943		$	1,552,130		$	3,564,827
Foreign currency--at value		37,195			–			29
Cash		–			–			10
Receivables:
Dividends and interest		5,322			8,303			57,458
Expense reimbursement from Manager		5			10			44
Expense reimbursement from Distributor		–			29			–
Foreign currency contracts		–			–			766
Fund shares sold		3,028			5,555			20,997
Investment securities sold		18,282			12,773			8,532
Other assets		–			19			–
Total Assets		3,193,775			1,578,819			3,652,663
Liabilities
Accrued management and investment advisory fees		2,291			652			1,542
Accrued administrative service fees		–			5			–
Accrued distribution fees		81			146			525
Accrued service fees		–			15			–
Accrued transfer agent fees		260			139			973
Accrued directors' expenses		–			–			2
Accrued professional fees		28			27			34
Accrued other expenses		138			71			215
Payables:
Dividends payable		–			4,123			16,277
Fund shares redeemed		2,200			788			14,383
Investment securities purchased		81,310			29,639			58,152
Total Liabilities		86,308			35,605			92,103
Net Assets Applicable to Outstanding Shares	$	3,107,467		$	1,543,214		$	3,560,560
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	2,919,775		$	1,563,879		$	3,761,507
Accumulated undistributed (overdistributed) net investment income (loss)		2,338			(4,544	)		(9,672	)
Accumulated undistributed (overdistributed) net realized gain (loss)		1,539			(15,007	)		(138,395	)
Net unrealized appreciation (depreciation) of investments		183,925			(1,114	)		(53,633	)
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		(110	)		–			753
Total Net Assets	$	3,107,467		$	1,543,214		$	3,560,560
Capital Stock (par value: $.01 per share):
Shares authorized		1,025,000			1,175,000			1,700,000
Net Asset Value Per Share:
Class A: Net Assets	$	164,926		$	312,158		$	933,518
Shares Issued and Outstanding		19,743			28,790			128,978
Net Asset Value per share	$	8.35		$	10.84		$	7.24
Maximum Offering Price	$	8.84		$	11.09		$	7.52
Class C: Net Assets	$	51,053		$	62,811		$	382,177
Shares Issued and Outstanding		6,297			5,798			52,287
Net Asset Value per share	$	8.11	^(a)	$	10.83	^(a)	$	7.31	^(a)
Class J: Net Assets		N/A		$	139,808			N/A
Shares Issued and Outstanding					12,872
Net Asset Value per share				$	10.86	^(a)
Class P: Net Assets	$	269,828		$	34,376		$	531,095
Shares Issued and Outstanding		30,275			3,159			73,358
Net Asset Value per share	$	8.91		$	10.88		$	7.24
Institutional: Net Assets	$	2,620,500		$	922,143		$	1,713,770
Shares Issued and Outstanding		293,646			84,984			238,310
Net Asset Value per share	$	8.92		$	10.85		$	7.19
R-1: Net Assets		N/A		$	2,866			N/A
Shares Issued and Outstanding					264
Net Asset Value per share				$	10.86
R-2: Net Assets		N/A		$	14,622			N/A
Shares Issued and Outstanding					1,347
Net Asset Value per share				$	10.86
R-3: Net Assets	$	21		$	14,995			N/A
Shares Issued and Outstanding		2			1,381
Net Asset Value per share	$	8.92		$	10.86
R-4: Net Assets	$	21		$	14,676			N/A
Shares Issued and Outstanding		2			1,351
Net Asset Value per share	$	8.92		$	10.86
R-5: Net Assets	$	10		$	24,759			N/A
Shares Issued and Outstanding		1			2,279
Net Asset Value per share	$	8.93		$	10.86
R-6: Net Assets	$	1,108			N/A			N/A
Shares Issued and Outstanding		124
Net Asset Value per share	$	8.92


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



								Inflation
Amounts in thousands, except per share amounts	High Yield Fund I				Income Fund			Protection Fund
Investment in securities--at cost	$	950,247		$	3,199,867		$	1,779,774
Foreign currency--at cost	$	–		$	–		$	67,784
Assets
Investment in securities--at value	$	956,415		$	3,302,374		$	1,815,403
Foreign currency--at value		–			–			67,902
Cash		1,109			751			–
Deposits with counterparty		–			–			2,758
Receivables:
Dividends and interest		14,522			25,946			2,016
Expense reimbursement from Manager		–			3			–
Expense reimbursement from Distributor		–			1			–
Foreign currency contracts		–			–			1,877
Fund shares sold		4,481			10,391			626
Investment securities sold		5,833			–			216
OTC swap agreements--at value (premiums paid $0, $0 and $0)		–			–			772
Variation margin on financial derivative instruments		–			–			151
Total Assets		982,360			3,339,466			1,891,721
Liabilities
Accrued management and investment advisory fees		523			1,326			573
Accrued administrative service fees		–			8			1
Accrued distribution fees		1			143			9
Accrued service fees		–			28			3
Accrued transfer agent fees		18			135			17
Accrued directors' expenses		1			4			2
Accrued professional fees		35			28			27
Accrued other expenses		25			59			36
Cash overdraft		–			–			2,450
Payables:
Dividends payable		4,209			8,777			–
Expense reimbursement to Manager		5			–			–
Foreign currency contracts		–			–			130
Fund shares redeemed		1,157			2,328			575
Investment securities purchased		12,037			29,731			72,007
Options and swaptions contracts written (premiums received $0, $0 and $8,577)		–			–			6,330
OTC swap agreements--at value (premiums received $0, $0 and $0)		–			–			176
Variation margin on financial derivative instruments		–			–			370
Total Liabilities		18,011			42,567			82,706
Net Assets Applicable to Outstanding Shares	$	964,349		$	3,296,899		$	1,809,015
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,015,064		$	3,270,654		$	1,803,411
Accumulated undistributed (overdistributed) net investment income (loss)		(296	)		(15,308	)		6,053
Accumulated undistributed (overdistributed) net realized gain (loss)		(56,587	)		(60,954	)		(43,938	)
Net unrealized appreciation (depreciation) of investments		6,168			102,507			41,624
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency		–			–			1,865
Total Net Assets	$	964,349		$	3,296,899		$	1,809,015
Capital Stock (par value: $.01 per share):
Shares authorized		400,000			1,125,000			1,000,000
Net Asset Value Per Share:
Class A: Net Assets	$	5,426		$	273,241		$	13,910
Shares Issued and Outstanding		553			28,358			1,614
Net Asset Value per share	$	9.80		$	9.64		$	8.62
Maximum Offering Price	$	10.18		$	9.86		$	8.96
Class C: Net Assets		N/A		$	66,576		$	3,850
Shares Issued and Outstanding					6,870			466
Net Asset Value per share				$	9.69	^(a)	$	8.25	^(a)
Class J: Net Assets		N/A		$	100,416		$	7,758
Shares Issued and Outstanding					10,397			921
Net Asset Value per share				$	9.66	^(a)	$	8.42	^(a)
Class P: Net Assets		N/A		$	24,111			N/A
Shares Issued and Outstanding					2,496
Net Asset Value per share				$	9.66
Institutional: Net Assets	$	958,923		$	2,692,447		$	1,770,164
Shares Issued and Outstanding		97,759			278,649			203,056
Net Asset Value per share	$	9.81		$	9.66		$	8.72
R-1: Net Assets		N/A		$	19,256		$	1,017
Shares Issued and Outstanding					1,992			123
Net Asset Value per share				$	9.67		$	8.29
R-2: Net Assets		N/A		$	3,155		$	524
Shares Issued and Outstanding					326			63
Net Asset Value per share				$	9.68		$	8.35
R-3: Net Assets		N/A		$	32,657		$	5,602
Shares Issued and Outstanding					3,374			664
Net Asset Value per share				$	9.68		$	8.44
R-4: Net Assets		N/A		$	27,577		$	2,357
Shares Issued and Outstanding					2,851			277
Net Asset Value per share				$	9.67		$	8.52
R-5: Net Assets		N/A		$	50,807		$	3,833
Shares Issued and Outstanding					5,261			446
Net Asset Value per share				$	9.66		$	8.59
R-6: Net Assets		N/A		$	6,656			N/A
Shares Issued and Outstanding					689
Net Asset Value per share				$	9.66


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



			International
			Emerging						LargeCap
Amounts in thousands, except per share amounts			Markets Fund			International Fund I			Growth Fund
Investment in securities--at cost		$	859,564		$	344,898		$	1,795,049
Foreign currency--at cost		$	1,945		$	6		$	–
Assets
Investment in securities--at value		$	978,364		$	386,867		$	2,086,122
Foreign currency--at value			1,944			6			–
Cash			476			–			–
Deposits with counterparty			–			751			–
Receivables:
Dividends and interest			93			1,816			1,151
Expense reimbursement from Manager			–			20			–
Expense reimbursement from Distributor			2			–			1
Foreign tax refund			1,248			–			–
Fund shares sold			345			191			289
Investment securities sold			10,589			–			6,007
Variation margin on financial derivative instruments			–			5			–
Other assets			–			–			13
Total Assets			993,061			389,656			2,093,583
Liabilities
Accrued management and investment advisory fees			1,001			302			1,135
Accrued administrative service fees			2			2			3
Accrued distribution fees			42			4			98
Accrued service fees			9			4			18
Accrued transfer agent fees			125			28			340
Accrued directors' expenses			–			–			1
Accrued professional fees			23			27			19
Accrued other expenses			218			41			57
Cash overdraft			–			200			–
Payables:
Deferred foreign tax			1,879			–			–
Fund shares redeemed			654			507			1,305
Investment securities purchased			3,538			–			48,340
Variation margin on financial derivative instruments			–			5			–
Total Liabilities			7,491			1,120			51,316
Net Assets Applicable to Outstanding Shares		$	985,570		$	388,536		$	2,042,267
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	1,092,998		$	654,353		$	1,509,252
Accumulated undistributed (overdistributed) net investment income (loss)			7,931			3,591			6,061
Accumulated undistributed (overdistributed) net realized gain (loss)			(233,539	)		(311,254	)		235,881
Net unrealized appreciation (depreciation) of investments			118,169			41,956			291,073
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency			11			(110	)		–
Total Net Assets		$	985,570		$	388,536		$	2,042,267
Capital Stock (par value: $.01 per share):
Shares authorized			900,000			700,000			1,335,000
Net Asset Value Per Share:
Class A: Net Assets	$		77,283		$	3,992		$	328,689
Shares Issued and Outstanding			3,398			307			34,759
Net Asset Value per share	$		22.74		$	12.99		$	9.46
Maximum Offering Price	$		24.06		$	13.75		$	10.01
Class C: Net Assets	$		9,220			N/A		$	15,327
Shares Issued and Outstanding			427						1,796
Net Asset Value per share	$		21.61	^(a)				$	8.53	^(a)
Class J: Net Assets	$		97,753			N/A		$	57,924
Shares Issued and Outstanding			4,457						6,494
Net Asset Value per share	$		21.93	^(a)				$	8.92	^(a)
Class P: Net Assets	$		1,522		$	69,820		$	9,007
Shares Issued and Outstanding			67			5,339			916
Net Asset Value per share	$		22.57		$	13.08		$	9.83
Institutional: Net Assets	$		756,257		$	296,966		$	1,549,259
Shares Issued and Outstanding			33,483			22,659			156,592
Net Asset Value per share	$		22.59		$	13.11		$	9.89
R-1: Net Assets	$		2,585		$	2,759		$	4,378
Shares Issued and Outstanding			115			212			486
Net Asset Value per share	$		22.42		$	12.99		$	9.02
R-2: Net Assets	$		3,346		$	2,577		$	2,093
Shares Issued and Outstanding			150			197			228
Net Asset Value per share	$		22.31		$	13.06		$	9.19
R-3: Net Assets	$		10,275		$	5,326		$	14,755
Shares Issued and Outstanding			457			408			1,462
Net Asset Value per share	$		22.46		$	13.05		$	10.09
R-4: Net Assets	$		8,340		$	3,386		$	10,224
Shares Issued and Outstanding			369			259			1,016
Net Asset Value per share	$		22.58		$	13.07		$	10.06
R-5: Net Assets	$		18,989		$	3,710		$	50,611
Shares Issued and Outstanding			840			284			5,079
Net Asset Value per share	$		22.61		$	13.06		$	9.96


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



			LargeCap				LargeCap				LargeCap S&P 500
Amounts in thousands, except per share amounts			Growth Fund I				Growth Fund II				Index Fund
Investment in securities--at cost		$	5,556,721			$	488,361			$	3,277,757
Assets
Investment in securities--at value		$	7,049,304			$	519,369			$	4,948,802
Deposits with counterparty			8,303				1,000				–
Receivables:
Dividends and interest			1,598				373				4,911
Expense reimbursement from Manager			101				20				4
Expense reimbursement from Distributor			2				1				8
Foreign currency contracts			–				36				–
Fund shares sold			2,318				19				1,579
Investment securities sold			16,805				9,624				–
Other assets			–				–				3
Total Assets			7,078,431				530,442				4,955,307
Liabilities
Accrued management and investment advisory fees			3,637				405				633
Accrued administrative service fees			15				1				30
Accrued distribution fees			56				6				212
Accrued service fees			104				3				181
Accrued transfer agent fees			327				7				226
Accrued directors' expenses			3				1				5
Accrued professional fees			22				18				20
Accrued other expenses			127				13				106
Payables:
Foreign currency contracts			–				2				–
Fund shares redeemed			4,699				542				4,043
Investment securities purchased			11,127				3,480				–
Variation margin on financial derivative instruments			332				38				44
Total Liabilities			20,449				4,516				5,500
Net Assets Applicable to Outstanding Shares		$	7,057,982			$	525,926			$	4,949,807
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	5,278,859			$	478,121			$	3,183,359
Accumulated undistributed (overdistributed) net investment income (loss)			4,787				3,087				71,909
Accumulated undistributed (overdistributed) net realized gain (loss)			284,120				13,901				23,685
Net unrealized appreciation (depreciation) of investments			1,490,216				30,783				1,670,854
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency			–				34				–
Total Net Assets		$	7,057,982			$	525,926			$	4,949,807
Capital Stock (par value: $.01 per share):
Shares authorized			1,170,000				540,000				950,000
Net Asset Value Per Share:
Class A: Net Assets	$		22,488				N/A		$		289,269
Shares Issued and Outstanding			1,907								19,255
Net Asset Value per share	$		11.79						$		15.02
Maximum Offering Price	$		12.48						$		15.25
Class C: Net Assets			N/A				N/A		$		41,497
Shares Issued and Outstanding											2,824
Net Asset Value per share									$		14.69	^(a)
Class J: Net Assets	$		110,553		$		32,690		$		530,674
Shares Issued and Outstanding			10,816				4,994				35,636
Net Asset Value per share	$		10.22	^(a)	$		6.55	^(a)	$		14.89	^(a)
Class P: Net Assets	$		1,128				N/A				N/A
Shares Issued and Outstanding			94
Net Asset Value per share	$		12.00
Institutional: Net Assets	$		6,436,701		$		479,594		$		3,244,789
Shares Issued and Outstanding			534,853				60,789				215,818
Net Asset Value per share	$		12.03		$		7.89		$		15.03
R-1: Net Assets	$		6,716		$		786		$		18,393
Shares Issued and Outstanding			629				109				1,232
Net Asset Value per share	$		10.68		$		7.21		$		14.93
R-2: Net Assets	$		13,145		$		1,584		$		30,093
Shares Issued and Outstanding			1,259				231				2,001
Net Asset Value per share	$		10.44		$		6.86		$		15.04
R-3: Net Assets	$		116,736		$		3,759		$		194,613
Shares Issued and Outstanding			10,453				527				12,960
Net Asset Value per share	$		11.17		$		7.14		$		15.02
R-4: Net Assets	$		74,021		$		2,229		$		189,284
Shares Issued and Outstanding			6,543				299				12,563
Net Asset Value per share	$		11.31		$		7.45		$		15.07
R-5: Net Assets	$		273,161		$		5,284		$		411,195
Shares Issued and Outstanding			23,426				698				27,054
Net Asset Value per share	$		11.66		$		7.57		$		15.20
R-6: Net Assets	$		3,333				N/A				N/A
Shares Issued and Outstanding			277
Net Asset Value per share	$		12.02


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



		LargeCap			LargeCap
Amounts in thousands, except per share amounts		Value Fund			Value Fund III				MidCap Fund
Investment in securities--at cost	$	2,274,012		$	1,637,413			$	8,801,277
Investments in affiliated securities--at cost	$	–		$	–			$	272,915
Assets
Investment in securities--at value	$	2,353,142		$	1,738,935			$	11,244,169
Investment in affiliated securities--at value		–			–				198,444
Cash		–			214				69
Deposits with counterparty		–			2,300				–
Receivables:
Dividends and interest		1,930			2,290				34,600
Expense reimbursement from Manager		3			18				–
Expense reimbursement from Distributor		1			1				4
Fund shares sold		502			387				30,907
Investment securities sold		18,242			13,323				43,375
Other assets		28			–				6
Total Assets		2,373,848			1,757,468				11,551,574
Liabilities
Accrued management and investment advisory fees		839			1,144				5,796
Accrued administrative service fees		1			2				35
Accrued distribution fees		54			14				818
Accrued service fees		3			7				144
Accrued transfer agent fees		121			17				1,863
Accrued directors' expenses		–			1				10
Accrued professional fees		18			18				24
Accrued other expenses		50			33				505
Payables:
Fund shares redeemed		1,098			499				13,889
Investment securities purchased		28,489			20,813				27,731
Variation margin on financial derivative instruments		–			127				–
Total Liabilities		30,673			22,675				50,815
Net Assets Applicable to Outstanding Shares	$	2,343,175		$	1,734,793			$	11,500,759
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	2,182,407		$	1,567,652			$	8,843,068
Accumulated undistributed (overdistributed) net investment income (loss)		39,182			26,867				44,515
Accumulated undistributed (overdistributed) net realized gain (loss)		42,456			39,864				244,755
Net unrealized appreciation (depreciation) of investments		79,130			100,410				2,368,421
Total Net Assets	$	2,343,175		$	1,734,793			$	11,500,759
Capital Stock (par value: $.01 per share):
Shares authorized		1,000,000			520,000				1,775,000
Net Asset Value Per Share:
Class A: Net Assets	$	180,209			N/A		$		2,096,851
Shares Issued and Outstanding		15,730							96,214
Net Asset Value per share	$	11.46					$		21.79
Maximum Offering Price	$	12.13					$		23.06
Class C: Net Assets	$	5,968			N/A		$		309,404
Shares Issued and Outstanding		536							15,392
Net Asset Value per share	$	11.13	^(a)				$		20.10	^(a)
Class J: Net Assets	$	61,362		$	68,742		$		261,105
Shares Issued and Outstanding		5,454			4,619				12,421
Net Asset Value per share	$	11.25	^(a)	$	14.88	^(a)	$		21.02	^(a)
Class P: Net Assets	$	243			N/A		$		2,807,462
Shares Issued and Outstanding		22							126,767
Net Asset Value per share	$	11.43					$		22.15
Institutional: Net Assets	$	2,082,564		$	1,634,892		$		5,356,398
Shares Issued and Outstanding		181,797			108,408				241,183
Net Asset Value per share	$	11.46		$	15.08		$		22.21
R-1: Net Assets	$	1,370		$	4,072		$		66,856
Shares Issued and Outstanding		121			272				3,261
Net Asset Value per share	$	11.32		$	14.98		$		20.50
R-2: Net Assets	$	2,256		$	3,096		$		28,422
Shares Issued and Outstanding		198			206				1,369
Net Asset Value per share	$	11.38		$	15.03		$		20.76
R-3: Net Assets	$	3,701		$	11,209		$		123,971
Shares Issued and Outstanding		326			718				5,793
Net Asset Value per share	$	11.35		$	15.61		$		21.40
R-4: Net Assets	$	1,442		$	5,659		$		145,709
Shares Issued and Outstanding		127			376				6,589
Net Asset Value per share	$	11.34		$	15.05		$		22.11
R-5: Net Assets	$	4,060		$	7,123		$		304,581
Shares Issued and Outstanding		354			470				13,867
Net Asset Value per share	$	11.46		$	15.16		$		21.96


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



			MidCap			MidCap			MidCap S&P 400
Amounts in thousands, except per share amounts			Growth Fund			Growth Fund III			Index Fund
Investment in securities--at cost		$	117,469		$	1,284,421		$	1,014,693
Assets
Investment in securities--at value		$	130,683		$	1,359,390		$	1,204,961
Deposits with counterparty			–			2,900			738
Receivables:
Dividends and interest			14			1,402			650
Expense reimbursement from Manager			10			37			–
Expense reimbursement from Distributor			1			1			2
Fund shares sold			58			221			2,202
Investment securities sold			2,294			4,730			–
Variation margin on financial derivative instruments			–			426			128
	Total Assets		133,060			1,369,107			1,208,681
Liabilities
Accrued management and investment advisory fees			74			1,136			153
Accrued administrative service fees			2			2			16
Accrued distribution fees			11			7			53
Accrued service fees			8			5			93
Accrued transfer agent fees			23			8			67
Accrued directors' expenses			–			–			1
Accrued professional fees			17			18			18
Accrued other expenses			15			22			33
Payables:
Fund shares redeemed			158			600			1,562
Investment securities purchased			3,021			8,822			255
	Total Liabilities		3,329			10,620			2,251
Net Assets Applicable to Outstanding Shares		$	129,731		$	1,358,487		$	1,206,430
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	124,033		$	1,288,017		$	945,086
Accumulated undistributed (overdistributed) net investment income (loss)			257			(1,300	)		12,738
Accumulated undistributed (overdistributed) net realized gain (loss)			(7,773	)		(2,313	)		58,576
Net unrealized appreciation (depreciation) of investments			13,214			74,083			190,030
	Total Net Assets	$	129,731		$	1,358,487		$	1,206,430
Capital Stock (par value: $.01 per share):
Shares authorized			325,000			625,000			425,000
Net Asset Value Per Share:
Class J: Net Assets	$		49,592		$	31,465		$	105,731
Shares Issued and Outstanding			9,023			3,820			5,677
Net Asset Value per share	$		5.50	^(a)	$	8.24	^(a)	$	18.62	^(a)
Institutional: Net Assets	$		41,967		$	1,302,544		$	666,562
Shares Issued and Outstanding			6,102			132,987			34,902
Net Asset Value per share	$		6.88		$	9.79		$	19.10
R-1: Net Assets	$		1,275		$	2,023		$	12,290
Shares Issued and Outstanding			222			242			652
Net Asset Value per share	$		5.74		$	8.35		$	18.84
R-2: Net Assets	$		3,717		$	3,057		$	15,930
Shares Issued and Outstanding			604			353			821
Net Asset Value per share	$		6.15		$	8.66		$	19.40
R-3: Net Assets	$		9,967		$	6,088		$	104,741
Shares Issued and Outstanding			1,530			654			5,415
Net Asset Value per share	$		6.51		$	9.31		$	19.34
R-4: Net Assets	$		6,594		$	5,682		$	104,499
Shares Issued and Outstanding			963			596			5,388
Net Asset Value per share	$		6.85		$	9.53		$	19.40
R-5: Net Assets	$		16,619		$	7,628		$	196,677
Shares Issued and Outstanding			2,344			771			10,055
Net Asset Value per share	$		7.09		$	9.89		$	19.56


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

			MidCap			MidCap			Money
Amounts in thousands, except per share amounts			Value Fund I			Value Fund III			Market Fund
Investment in securities--at cost		$	1,085,892		$	1,136,400		$	746,996
Assets
Investment in securities--at value		$	1,105,319		$	1,206,984		$	746,996
Cash			–			1			21
Deposits with counterparty			4,400			2,200			–
Receivables:
Dividends and interest			617			922			148
Expense reimbursement from Manager			115			20			–
Expense reimbursement from Distributor			1			1			51
Fund shares sold			204			372			2,044
Investment securities sold			10,207			4,556			–
Variation margin on financial derivative instruments			181			335			–
Other assets			–			–			26
	Total Assets		1,121,044			1,215,391			749,286
Liabilities
Accrued management and investment advisory fees			948			654			250
Accrued administrative service fees			4			2			–
Accrued distribution fees			18			22			51
Accrued service fees			22			15			–
Accrued transfer agent fees			59			97			191
Accrued directors' expenses			1			1			2
Accrued professional fees			19			19			26
Accrued other expenses			39			43			48
Payables:
Expense reimbursement to Manager			–			–			68
Fund shares redeemed			1,708			305			3,818
Investment securities purchased			6,399			4,790			5,000
	Total Liabilities		9,217			5,948			9,454
Net Assets Applicable to Outstanding Shares		$	1,111,827		$	1,209,443		$	739,832
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	1,101,128		$	1,121,721		$	742,747
Accumulated undistributed (overdistributed) net investment income (loss)			14,242			14,772			54
Accumulated undistributed (overdistributed) net realized gain (loss)			(22,405	)		3,478			(2,969	)
Net unrealized appreciation (depreciation) of investments			18,862			69,472			–
	Total Net Assets	$	1,111,827		$	1,209,443		$	739,832
Capital Stock (par value: $.01 per share):
Shares authorized			525,000			550,000			8,400,000
Net Asset Value Per Share:
Class A: Net Assets			N/A		$	15,070		$	451,554
Shares Issued and Outstanding						822			451,373
Net Asset Value per share					$	18.34		$	1.00
Maximum Offering Price					$	19.41		$	1.00
Class C: Net Assets			N/A			N/A		$	19,863
Shares Issued and Outstanding									19,856
Net Asset Value per share								$	1.00	^(a)
Class J: Net Assets	$		65,870		$	95,056		$	268,364
Shares Issued and Outstanding			5,059			5,441			268,258
Net Asset Value per share	$		13.02	^(a)	$	17.47	^(a)	$	1.00	^(a)
Class P: Net Assets			N/A		$	682			N/A
Shares Issued and Outstanding						37
Net Asset Value per share					$	18.47
Institutional: Net Assets	$		944,079		$	1,025,943		$	51
Shares Issued and Outstanding			71,715			55,323			51
Net Asset Value per share	$		13.16		$	18.54		$	1.00
R-1: Net Assets	$		4,475		$	994			N/A
Shares Issued and Outstanding			355			57
Net Asset Value per share	$		12.61		$	17.50
R-2: Net Assets	$		5,592		$	1,977			N/A
Shares Issued and Outstanding			439			112
Net Asset Value per share	$		12.73		$	17.65
R-3: Net Assets	$		20,452		$	17,205			N/A
Shares Issued and Outstanding			1,580			982
Net Asset Value per share	$		12.94		$	17.53
R-4: Net Assets	$		20,414		$	20,460			N/A
Shares Issued and Outstanding			1,572			1,177
Net Asset Value per share	$		12.99		$	17.38
R-5: Net Assets	$		50,945		$	28,552			N/A
Shares Issued and Outstanding			3,900			1,626
Net Asset Value per share	$		13.06		$	17.56
R-6: Net Assets			N/A		$	3,504			N/A
Shares Issued and Outstanding						189
Net Asset Value per share					$	18.54


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



							Principal Capital			Principal LifeTime
Amounts in thousands, except per share amounts			Overseas Fund				Appreciation Fund			2010 Fund
Investment in securities--at cost		$	3,198,504			$	1,511,675		$	–
Investment in affiliated Funds--at cost			$	–		$	–		$	1,141,486
Foreign currency--at cost			$	11,778		$	–		$	–
Assets
Investment in securities--at value		$	3,081,552			$	2,457,418		$	–
Investment in affiliated Funds--at value				–			–			1,217,372
Foreign currency--at value				11,806			–			–
Deposits with counterparty				6,302			–			–
Receivables:
Dividends and interest				14,222			2,153			970
Expense reimbursement from Manager				78			–			1
Expense reimbursement from Distributor				–			–			4
Fund shares sold				717			334			216
Investment securities sold				19,033			9,366			1,560
Variation margin on financial derivative instruments				53			–			–
Other assets				–			4			–
Prepaid directors' expenses				–			–			2
Total Assets			3,133,763				2,469,275			1,220,125
Liabilities
Accrued management and investment advisory fees				2,771			955			–
Accrued administrative service fees				–			4			8
Accrued distribution fees				–			240			56
Accrued service fees				–			23			36
Accrued transfer agent fees				23			319			29
Accrued directors' expenses				3			3			–
Accrued professional fees				31			19			13
Accrued other expenses				179			93			21
Cash overdraft				2,073			–			–
Payables:
Fund shares redeemed				623			2,481			1,772
Investment securities purchased				45,848			4,526			970
Variation margin on financial derivative instruments				68			–			–
Total Liabilities				51,619			8,663			2,905
Net Assets Applicable to Outstanding Shares		$	3,082,144			$	2,460,612		$	1,217,220
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	3,220,520			$	1,287,676		$	1,106,460
Accumulated undistributed (overdistributed) net investment income (loss)				54,580			25,727			11,215
Accumulated undistributed (overdistributed) net realized gain (loss)				(73,653	)		201,466			23,659
Net unrealized appreciation (depreciation) of investments			(118,628		)		945,743			75,886
Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency				(675	)		–			–
Total Net Assets		$	3,082,144			$	2,460,612		$	1,217,220
Capital Stock (par value: $.01 per share):
Shares authorized			600,000				1,000,000			650,000
Net Asset Value Per Share:
Class A: Net Assets				N/A		$	878,686		$	33,881
Shares Issued and Outstanding							15,341			2,545
Net Asset Value per share						$	57.28		$	13.31
Maximum Offering Price						$	60.61		$	13.83
Class C: Net Assets				N/A		$	46,507			N/A
Shares Issued and Outstanding							1,001
Net Asset Value per share						$	46.47	^(a)
Class J: Net Assets				N/A			N/A		$	245,736
Shares Issued and Outstanding										18,616
Net Asset Value per share									$	13.20	^(a)
Class P: Net Assets				N/A		$	29,415			N/A
Shares Issued and Outstanding							507
Net Asset Value per share						$	58.02
Institutional: Net Assets	$		3,080,741			$	1,399,596		$	768,118
Shares Issued and Outstanding			327,649				24,031			57,946
Net Asset Value per share	$			9.40		$	58.24		$	13.26
R-1: Net Assets	$			21		$	2,904		$	7,515
Shares Issued and Outstanding				2			51			572
Net Asset Value per share	$			9.30		$	57.05		$	13.15
R-2: Net Assets	$			14		$	3,393		$	8,387
Shares Issued and Outstanding				1			59			638
Net Asset Value per share	$			9.32		$	57.24		$	13.15
R-3: Net Assets	$			321		$	29,886		$	50,539
Shares Issued and Outstanding				34			522			3,853
Net Asset Value per share	$			9.31		$	57.22		$	13.12
R-4: Net Assets	$			546		$	20,833		$	29,697
Shares Issued and Outstanding				58			361			2,256
Net Asset Value per share	$			9.35		$	57.69		$	13.16
R-5: Net Assets	$			501		$	49,392		$	73,347
Shares Issued and Outstanding				54			854			5,562
Net Asset Value per share	$			9.36		$	57.87		$	13.19


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



	Principal LifeTime			Principal LifeTime			Principal LifeTime
Amounts in thousands, except per share amounts		2015 Fund		2020 Fund			2025 Fund
Investment in affiliated Funds--at cost	$	664,709	$	5,430,537		$	1,550,968
Assets
Investment in affiliated Funds--at value	$	760,416	$	5,851,009		$	1,693,006
Receivables:
Dividends and interest		510		3,276			702
Expense reimbursement from Distributor		–		14			–
Fund shares sold		761		1,197			2,442
Investment securities sold		–		2,229			–
Prepaid directors' expenses		–		12			–
Total Assets		761,687		5,857,737			1,696,150
Liabilities
Accrued administrative service fees		10		40			21
Accrued distribution fees		23		231			53
Accrued service fees		44		188			95
Accrued transfer agent fees		2		115			7
Accrued professional fees		15		16			15
Accrued other expenses		4		56			12
Payables:
Fund shares redeemed		446		3,400			593
Investment securities purchased		825		3,276			2,552
Total Liabilities		1,369		7,322			3,348
Net Assets Applicable to Outstanding Shares	$	760,318	$	5,850,415		$	1,692,802
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	646,986	$	5,294,165		$	1,512,227
Accumulated undistributed (overdistributed) net investment income (loss)		6,032		41,726			8,974
Accumulated undistributed (overdistributed) net realized gain (loss)		11,593		94,052			29,563
Net unrealized appreciation (depreciation) of investments		95,707		420,472			142,038
Total Net Assets	$	760,318	$	5,850,415		$	1,692,802
Capital Stock (par value: $.01 per share):
Shares authorized		400,000		1,125,000			400,000
Net Asset Value Per Share:
Class A: Net Assets		N/A	$	118,522			N/A
Shares Issued and Outstanding				8,810
Net Asset Value per share			$	13.45
Maximum Offering Price			$	14.23
Class J: Net Assets		N/A	$	900,189			N/A
Shares Issued and Outstanding				67,566
Net Asset Value per share			$	13.32	^(a)
Institutional: Net Assets	$	556,606	$	3,948,810		$	1,247,487
Shares Issued and Outstanding		54,717		294,739			118,698
Net Asset Value per share	$	10.17	$	13.40		$	10.51
R-1: Net Assets	$	8,405	$	40,455		$	14,810
Shares Issued and Outstanding		849		3,051			1,443
Net Asset Value per share	$	9.90	$	13.26		$	10.26
R-2: Net Assets	$	8,043	$	48,551		$	18,268
Shares Issued and Outstanding		809		3,667			1,777
Net Asset Value per share	$	9.94	$	13.24		$	10.28
R-3: Net Assets	$	73,860	$	235,954		$	172,896
Shares Issued and Outstanding		7,430		17,826			16,791
Net Asset Value per share	$	9.94	$	13.24		$	10.30
R-4: Net Assets	$	44,908	$	182,490		$	96,203
Shares Issued and Outstanding		4,484		13,744			9,256
Net Asset Value per share	$	10.02	$	13.28		$	10.39
R-5: Net Assets	$	68,496	$	375,444		$	143,138
Shares Issued and Outstanding		6,822		28,195			13,716
Net Asset Value per share	$	10.04	$	13.32		$	10.44


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



	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands, except per share amounts		2030 Fund			2035 Fund			2040 Fund
Investment in affiliated Funds--at cost	$	6,095,579		$	1,163,289		$	3,931,406
Assets
Investment in affiliated Funds--at value	$	6,578,023		$	1,290,053		$	4,355,408
Receivables:
Dividends and interest		2,220			285			805
Expense reimbursement from Manager		5			–			3
Expense reimbursement from Distributor		16			–			10
Fund shares sold		850			1,145			781
Investment securities sold		625			–			–
Prepaid directors' expenses		9			–			6
Total Assets		6,581,748			1,291,483			4,357,013
Liabilities
Accrued administrative service fees		38			15			26
Accrued distribution fees		250			37			156
Accrued service fees		186			67			126
Accrued transfer agent fees		150			7			113
Accrued professional fees		16			15			14
Accrued other expenses		80			10			63
Payables:
Fund shares redeemed		1,428			705			658
Investment securities purchased		2,220			724			890
Total Liabilities		4,368			1,580			2,046
Net Assets Applicable to Outstanding Shares	$	6,577,380		$	1,289,903		$	4,354,967
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	5,930,470		$	1,126,273		$	3,784,580
Accumulated undistributed (overdistributed) net investment income (loss)		29,441			3,089			8,822
Accumulated undistributed (overdistributed) net realized gain (loss)		135,025			33,777			137,563
Net unrealized appreciation (depreciation) of investments		482,444			126,764			424,002
Total Net Assets	$	6,577,380		$	1,289,903		$	4,354,967
Capital Stock (par value: $.01 per share):
Shares authorized		1,225,000			400,000			1,050,000
Net Asset Value Per Share:
Class A: Net Assets	$	117,542			N/A	$		84,378
Shares Issued and Outstanding		8,745						6,090
Net Asset Value per share	$	13.44				$		13.86
Maximum Offering Price	$	14.22				$		14.67
Class J: Net Assets	$	1,066,715			N/A	$		625,617
Shares Issued and Outstanding		79,708						44,732
Net Asset Value per share	$	13.38	^(a)			$		13.99	^(a)
Institutional: Net Assets	$	4,517,455		$	973,792	$		3,052,072
Shares Issued and Outstanding		336,385			88,307			216,404
Net Asset Value per share	$	13.43		$	11.03	$		14.10
R-1: Net Assets	$	34,738		$	12,700	$		24,595
Shares Issued and Outstanding		2,616			1,175			1,767
Net Asset Value per share	$	13.28		$	10.80	$		13.92
R-2: Net Assets	$	47,988		$	13,427	$		32,821
Shares Issued and Outstanding		3,605			1,244			2,356
Net Asset Value per share	$	13.31		$	10.79	$		13.93
R-3: Net Assets	$	233,975		$	111,881	$		146,325
Shares Issued and Outstanding		17,545			10,314			10,524
Net Asset Value per share	$	13.34		$	10.85	$		13.90
R-4: Net Assets	$	184,624		$	70,656	$		127,949
Shares Issued and Outstanding		13,414			6,468			9,180
Net Asset Value per share	$	13.76		$	10.92	$		13.94
R-5: Net Assets	$	374,343		$	107,447	$		261,210
Shares Issued and Outstanding		27,941			9,799			18,627
Net Asset Value per share	$	13.40		$	10.97	$		14.02


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



	Principal LifeTime			Principal LifeTime			Principal LifeTime
Amounts in thousands, except per share amounts		2045 Fund		2050 Fund			2055 Fund
Investment in affiliated Funds--at cost	$	787,848	$	2,164,445		$	297,316
Assets
Investment in affiliated Funds--at value	$	850,944	$	2,363,086		$	305,335
Receivables:
Dividends and interest		139		339			37
Expense reimbursement from Manager		–		14			–
Expense reimbursement from Distributor		–		3			–
Fund shares sold		806		660			835
Prepaid directors' expenses		–		2			–
Total Assets		851,889		2,364,104			306,207
Liabilities
Accrued administrative service fees		9		15			3
Accrued distribution fees		23		71			7
Accrued service fees		45		71			15
Accrued transfer agent fees		6		90			1
Accrued professional fees		15		13			14
Accrued other expenses		9		47			7
Payables:
Fund shares redeemed		9		469			8
Investment securities purchased		936		440			864
Total Liabilities		1,052		1,216			919
Net Assets Applicable to Outstanding Shares	$	850,837	$	2,362,888		$	305,288
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	761,863	$	2,085,957		$	289,356
Accumulated undistributed (overdistributed) net investment income (loss)		1,209		2,915			236
Accumulated undistributed (overdistributed) net realized gain (loss)		24,669		75,375			7,677
Net unrealized appreciation (depreciation) of investments		63,096		198,641			8,019
Total Net Assets	$	850,837	$	2,362,888		$	305,288
Capital Stock (par value: $.01 per share):
Shares authorized		400,000		825,000			400,000
Net Asset Value Per Share:
Class A: Net Assets		N/A	$	64,995			N/A
Shares Issued and Outstanding				4,718
Net Asset Value per share			$	13.78
Maximum Offering Price			$	14.58
Class J: Net Assets		N/A	$	194,644			N/A
Shares Issued and Outstanding				14,551
Net Asset Value per share			$	13.38	^(a)
Institutional: Net Assets	$	634,436	$	1,769,456		$	234,603
Shares Issued and Outstanding		56,412		128,803			20,241
Net Asset Value per share	$	11.25	$	13.74		$	11.59
R-1: Net Assets	$	6,930	$	16,051		$	2,723
Shares Issued and Outstanding		635		1,185			243
Net Asset Value per share	$	10.91	$	13.55		$	11.21
R-2: Net Assets	$	10,083	$	21,050		$	2,743
Shares Issued and Outstanding		925		1,553			244
Net Asset Value per share	$	10.90	$	13.55		$	11.24
R-3: Net Assets	$	70,524	$	77,168		$	21,628
Shares Issued and Outstanding		6,420		5,689			1,911
Net Asset Value per share	$	10.99	$	13.56		$	11.32
R-4: Net Assets	$	40,967	$	64,127		$	15,452
Shares Issued and Outstanding		3,701		4,703			1,355
Net Asset Value per share	$	11.07	$	13.64		$	11.40
R-5: Net Assets	$	87,897	$	155,397		$	28,139
Shares Issued and Outstanding		7,923		11,371			2,458
Net Asset Value per share	$	11.09	$	13.67		$	11.45


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



	Principal LifeTime				Principal LifeTime		Principal LifeTime
Amounts in thousands, except per share amounts		2060 Fund			Hybrid 2015 Fund		Hybrid 2020 Fund
Investment in affiliated Funds--at cost	$	161,207		$	12,097	$	43,148
Assets
Investment in affiliated Funds--at value	$	155,553		$	12,231	$	43,566
Receivables:
Dividends and interest		19			5		15
Expense reimbursement from Manager		7			4		4
Fund shares sold		193			69		–
Investment securities sold		–			–		10
Total Assets		155,772			12,309		43,595
Liabilities
Accrued administrative service fees		1			–		–
Accrued distribution fees		3			–		–
Accrued service fees		4			–		–
Accrued transfer agent fees		6			–		–
Accrued professional fees		14			14		14
Accrued registration fees		–			–		4
Accrued other expenses		7			3		–
Payables:
Fund shares redeemed		11			–		10
Investment securities purchased		201			74		15
Total Liabilities		247			91		43
Net Assets Applicable to Outstanding Shares	$	155,525		$	12,218	$	43,552
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	157,727		$	12,002	$	42,871
Accumulated undistributed (overdistributed) net investment income (loss)		136			41		110
Accumulated undistributed (overdistributed) net realized gain (loss)		3,316			41		153
Net unrealized appreciation (depreciation) of investments		(5,654	)		134		418
Total Net Assets	$	155,525		$	12,218	$	43,552
Capital Stock (par value: $.01 per share):
Shares authorized		500,000			350,000		350,000
Net Asset Value Per Share:
Class J: Net Assets	$	5,164			N/A		N/A
Shares Issued and Outstanding		435
Net Asset Value per share	$	11.86	^(a)
Institutional: Net Assets	$	131,082		$	12,207	$	43,541
Shares Issued and Outstanding		10,984			1,214		4,307
Net Asset Value per share	$	11.93		$	10.06	$	10.11
R-1: Net Assets	$	1,099			N/A		N/A
Shares Issued and Outstanding		94
Net Asset Value per share	$	11.67
R-2: Net Assets	$	947			N/A		N/A
Shares Issued and Outstanding		81
Net Asset Value per share	$	11.72
R-3: Net Assets	$	5,126			N/A		N/A
Shares Issued and Outstanding		434
Net Asset Value per share	$	11.82
R-4: Net Assets	$	4,573			N/A		N/A
Shares Issued and Outstanding		387
Net Asset Value per share	$	11.83
R-5: Net Assets	$	7,534			N/A		N/A
Shares Issued and Outstanding		635
Net Asset Value per share	$	11.86
R-6: Net Assets		N/A		$	11	$	11
Shares Issued and Outstanding					1		1
Net Asset Value per share				$	10.06	$	10.11


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

	Principal LifeTime			Principal LifeTime		Principal LifeTime
Amounts in thousands, except per share amounts	Hybrid 2025 Fund			Hybrid 2030 Fund		Hybrid 2035 Fund
Investment in affiliated Funds--at cost	$	12,759	$	45,565	$	9,844
Assets
Investment in affiliated Funds--at value	$	12,886	$	45,803	$	9,893
Receivables:
Dividends and interest		3		9		1
Expense reimbursement from Manager		4		4		4
Fund shares sold		1		28		2
Total Assets		12,894		45,844		9,900
Liabilities
Accrued professional fees		14		14		13
Accrued registration fees		2		4		3
Accrued other expenses		1		–		–
Payables:
Investment securities purchased		3		36		2
Total Liabilities		20		54		18
Net Assets Applicable to Outstanding Shares	$	12,874	$	45,790	$	9,882
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	12,700	$	45,287	$	9,787
Accumulated undistributed (overdistributed) net investment income (loss)		18		57		6
Accumulated undistributed (overdistributed) net realized gain (loss)		29		208		40
Net unrealized appreciation (depreciation) of investments		127		238		49
Total Net Assets	$	12,874	$	45,790	$	9,882
Capital Stock (par value: $.01 per share):
Shares authorized		350,000		350,000		350,000
Net Asset Value Per Share:
Institutional: Net Assets	$	12,863	$	45,779	$	9,871
Shares Issued and Outstanding		1,271		4,507		970
Net Asset Value per share	$	10.12	$	10.16	$	10.18
R-6: Net Assets	$	11	$	11	$	11
Shares Issued and Outstanding		1		1		1
Net Asset Value per share	$	10.13	$	10.16	$	10.18


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

	Principal LifeTime			Principal LifeTime			Principal LifeTime
Amounts in thousands, except per share amounts	Hybrid 2040 Fund			Hybrid 2045 Fund			Hybrid 2050 Fund
Investment in affiliated Funds--at cost	$	23,744	$	6,273		$	12,570
Assets
Investment in affiliated Funds--at value	$	23,795	$	6,249		$	12,616
Receivables:
Dividends and interest		2		1			1
Expense reimbursement from Manager		4		4			4
Fund shares sold		1		1			–
Investment securities sold		2		–			10
Total Assets		23,804		6,255			12,631
Liabilities
Accrued professional fees		14		14			14
Accrued registration fees		3		3			2
Accrued other expenses		1		–			1
Payables:
Fund shares redeemed		2		–			10
Investment securities purchased		2		1			1
Total Liabilities		22		18			28
Net Assets Applicable to Outstanding Shares	$	23,782	$	6,237		$	12,603
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	23,573	$	6,233		$	12,457
Accumulated undistributed (overdistributed) net investment income (loss)		16		4			9
Accumulated undistributed (overdistributed) net realized gain (loss)		142		24			91
Net unrealized appreciation (depreciation) of investments		51		(24	)		46
Total Net Assets	$	23,782	$	6,237		$	12,603
Capital Stock (par value: $.01 per share):
Shares authorized		350,000		350,000			350,000
Net Asset Value Per Share:
Institutional: Net Assets	$	23,771	$	6,226		$	12,592
Shares Issued and Outstanding		2,330		611			1,233
Net Asset Value per share	$	10.20	$	10.18		$	10.21
R-6: Net Assets	$	11	$	11		$	11
Shares Issued and Outstanding		1		1			1
Net Asset Value per share	$	10.20	$	10.18		$	10.21


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

						Principal LifeTime
Amounts in thousands, except per share amounts and Principal LifeTime Hybrid 2055 Fund	Principal LifeTime			Principal LifeTime		Hybrid
and Principal LifeTime Hybrid 2060 Fund	Hybrid 2055 Fund			Hybrid 2060 Fund		Income Fund
Investment in affiliated Funds--at cost	$	1,923,687	$	450,599	$	8,762
Assets
Investment in affiliated Funds--at value	$	1,926,240	$	463,553	$	8,796
Receivables:
Dividends and interest		169		41		6
Expense reimbursement from Manager		3,851		3,820		4
Fund shares sold		514		204		–
Tax reclaims receivable		–		–		–
Other assets		–		1		–
Prepaid directors’ expenses		6		2		–
Total Assets		1,930,780		467,621		8,806
Liabilities
Accrued transfer agent fees		62		61		–
Accrued professional fees		13,786		13,786		14
Accrued registration fees		2,522		2,459		2
Accrued other expenses		35		51		–
Payables:
Investment securities purchased		607		246		6
Total Liabilities		17,012		16,603		22
Net Assets Applicable to Outstanding Shares	$	1,913,768	$	451,018	$	8,784
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,905,405	$	435,641	$	8,714
Accumulated undistributed (overdistributed) net investment income (loss)		1,031		363		31
Accumulated undistributed (overdistributed) net realized gain (loss)		4,779		2,060		5
Net unrealized appreciation (depreciation) of investments		2,553		12,954		34
Total Net Assets	$	1,913,768	$	451,018	$	8,784
Capital Stock (par value: $.01 per share):
Shares authorized		350,000,000		350,000,000		350,000
Net Asset Value Per Share:
Institutional: Net Assets	$	1,902,629	$	439,873	$	8,773
Shares Issued and Outstanding		186,176		43,037		874
Net Asset Value per share	$	10.22	$	10.22	$	10.04
R-6: Net Assets	$	11,139	$	11,145	$	11
Shares Issued and Outstanding		1,089		1,089		1
Net Asset Value per share	$	10.23	$	10.23	$	10.05


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



	Principal LifeTime
		Strategic			Real Estate			SAM
Amounts in thousands, except per share amounts		Income Fund			Securities Fund			Balanced Portfolio
Investment in securities--at cost	$	–		$	2,310,962		$	1,123
Investment in affiliated Funds--at cost	$	644,775		$	–		$	4,032,529
Assets
Investment in securities--at value	$	–		$	2,890,812		$	1,123
Investment in affiliated Funds--at value		686,877			–			4,762,663
Receivables:
Dividends and interest		654			1,876			4,073
Expense reimbursement from Manager		4			–			3
Expense reimbursement from Distributor		1			3			15
Fund shares sold		238			4,954			2,304
Investment securities sold		105			34,366			2,636
Prepaid directors' expenses		1			–			–
Total Assets		687,880			2,932,011			4,772,817
Liabilities
Accrued management and investment advisory fees		–			2,034			1,243
Accrued administrative service fees		4			13			7
Accrued distribution fees		25			177			1,229
Accrued service fees		20			74			39
Accrued transfer agent fees		13			391			567
Accrued directors' expenses		–			2			2
Accrued professional fees		12			18			17
Accrued other expenses		17			154			231
Payables:
Fund shares redeemed		342			5,454			6,214
Investment securities purchased		655			13,605			4,070
Total Liabilities		1,088			21,922			13,619
Net Assets Applicable to Outstanding Shares	$	686,792		$	2,910,089		$	4,759,198
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	635,121		$	2,265,020		$	4,005,307
Accumulated undistributed (overdistributed) net investment income (loss)		7,581			–			1,595
Accumulated undistributed (overdistributed) net realized gain (loss)		1,988			65,219			22,162
Net unrealized appreciation (depreciation) of investments		42,102			579,850			730,134
Total Net Assets	$	686,792		$	2,910,089		$	4,759,198
Capital Stock (par value: $.01 per share):
Shares authorized		750,000			950,000			1,925,000
Net Asset Value Per Share:
Class A: Net Assets	$	21,260		$	370,306		$	2,047,943
Shares Issued and Outstanding		1,730			16,238			135,915
Net Asset Value per share	$	12.29		$	22.80		$	15.07
Maximum Offering Price	$	12.77		$	24.13		$	15.95
Class C: Net Assets		N/A		$	52,388		$	747,750
Shares Issued and Outstanding					2,337			50,299
Net Asset Value per share				$	22.42	^(a)	$	14.87	^(a)
Class J: Net Assets	$	80,677		$	190,646		$	1,008,439
Shares Issued and Outstanding		6,638			8,590			68,975
Net Asset Value per share	$	12.15	^(a)	$	22.19	^(a)	$	14.62	^(a)
Class P: Net Assets		N/A		$	126,695		$	11,310
Shares Issued and Outstanding					5,557			762
Net Asset Value per share				$	22.80		$	14.85
Institutional: Net Assets	$	491,823		$	1,829,410		$	763,306
Shares Issued and Outstanding		40,233			80,146			51,383
Net Asset Value per share	$	12.22		$	22.83		$	14.86
R-1: Net Assets	$	4,187		$	8,724		$	2,795
Shares Issued and Outstanding		344			387			189
Net Asset Value per share	$	12.18		$	22.53		$	14.82
R-2: Net Assets	$	6,161		$	19,671		$	4,805
Shares Issued and Outstanding		506			903			325
Net Asset Value per share	$	12.18		$	21.78		$	14.78
R-3: Net Assets	$	26,646		$	64,094		$	72,364
Shares Issued and Outstanding		2,204			2,876			4,889
Net Asset Value per share	$	12.09		$	22.28		$	14.80
R-4: Net Assets	$	15,566		$	72,515		$	31,676
Shares Issued and Outstanding		1,284			3,288			2,135
Net Asset Value per share	$	12.12		$	22.06		$	14.84
R-5: Net Assets	$	40,472		$	175,640		$	68,810
Shares Issued and Outstanding		3,318			7,947			4,637
Net Asset Value per share	$	12.20		$	22.10		$	14.84


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



	SAM Conservative				SAM Conservative			SAM Flexible
Amounts in thousands, except per share amounts	Balanced Portfolio				Growth Portfolio			Income Portfolio
Investment in securities--at cost	$	612		$	1,105		$	878
Investment in affiliated Funds--at cost	$	1,567,076		$	2,472,205		$	2,393,693
Assets
Investment in securities--at value	$	612		$	1,105		$	878
Investment in affiliated Funds--at value		1,736,683			3,000,047			2,532,521
Receivables:
Dividends and interest		2,464			1,112			5,087
Expense reimbursement from Manager		42			2			–
Expense reimbursement from Distributor		8			8			16
Fund shares sold		547			1,261			8,236
Investment securities sold		639			86			–
Prepaid directors' expenses		–			1			–
Total Assets		1,740,995			3,003,622			2,546,738
Liabilities
Accrued management and investment advisory fees		451			786			654
Accrued administrative service fees		2			4			1
Accrued distribution fees		412			820			639
Accrued service fees		14			21			8
Accrued transfer agent fees		157			367			200
Accrued directors' expenses		1			–			2
Accrued professional fees		15			14			14
Accrued other expenses		77			165			100
Payables:
Dividends payable		–			–			4,717
Fund shares redeemed		1,408			1,618			1,933
Investment securities purchased		2,463			1,109			6,554
Total Liabilities		5,000			4,904			14,822
Net Assets Applicable to Outstanding Shares	$	1,735,995		$	2,998,718		$	2,531,916
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,564,052		$	2,440,559		$	2,402,784
Accumulated undistributed (overdistributed) net investment income (loss)		1,812			3,807			470
Accumulated undistributed (overdistributed) net realized gain (loss)		524			26,510			(10,166	)
Net unrealized appreciation (depreciation) of investments		169,607			527,842			138,828
Total Net Assets	$	1,735,995		$	2,998,718		$	2,531,916
Capital Stock (par value: $.01 per share):
Shares authorized		1,725,000			1,925,000			1,900,000
Net Asset Value Per Share:
Class A: Net Assets	$	512,080		$	1,418,053		$	917,507
Shares Issued and Outstanding		43,782			85,032			76,042
Net Asset Value per share	$	11.70		$	16.68		$	12.07
Maximum Offering Price	$	12.38		$	17.65		$	12.54
Class C: Net Assets	$	264,058		$	515,921		$	368,051
Shares Issued and Outstanding		22,809			33,102			30,801
Net Asset Value per share	$	11.58	^(a)	$	15.59	^(a)	$	11.95	^(a)
Class J: Net Assets	$	565,441		$	490,030		$	1,024,333
Shares Issued and Outstanding		48,931			30,299			85,578
Net Asset Value per share	$	11.56	^(a)	$	16.17	^(a)	$	11.97	^(a)
Class P: Net Assets	$	8,386		$	6,077		$	11,865
Shares Issued and Outstanding		724			371			987
Net Asset Value per share	$	11.59		$	16.37		$	12.02
Institutional: Net Assets	$	318,123		$	471,935		$	174,007
Shares Issued and Outstanding		27,445			28,815			14,465
Net Asset Value per share	$	11.59		$	16.38		$	12.03
R-1: Net Assets	$	2,408		$	2,542		$	1,100
Shares Issued and Outstanding		208			158			92
Net Asset Value per share	$	11.55		$	16.09		$	11.98
R-2: Net Assets	$	1,194		$	4,172		$	717
Shares Issued and Outstanding		103			259			60
Net Asset Value per share	$	11.63		$	16.11		$	12.01
R-3: Net Assets	$	16,869		$	27,286		$	8,034
Shares Issued and Outstanding		1,458			1,693			669
Net Asset Value per share	$	11.57		$	16.12		$	12.00
R-4: Net Assets	$	15,336		$	15,639		$	6,091
Shares Issued and Outstanding		1,324			960			507
Net Asset Value per share	$	11.58		$	16.29		$	12.01
R-5: Net Assets	$	32,100		$	47,063		$	20,211
Shares Issued and Outstanding		2,771			2,892			1,683
Net Asset Value per share	$	11.58		$	16.27		$	12.01


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



	SAM Strategic				Short-Term
Amounts in thousands, except per share amounts	Growth Portfolio				Income Fund				SmallCap Fund
Investment in securities--at cost	$	1,081		$	3,115,330			$	478,441
Investment in affiliated Funds--at cost	$	1,507,360		$	–				$ –
Assets
Investment in securities--at value	$	1,081		$	3,125,097			$	555,634
Investment in affiliated Funds--at value		1,795,578			–				–
Cash		–			29				–
Receivables:
Dividends and interest		52			17,933				53
Expense reimbursement from Manager		1			–				6
Expense reimbursement from Distributor		4			2				3
Fund shares sold		438			7,043				259
Investment securities sold		794			63,210				1,747
Other assets		–			–				1
Total Assets		1,797,948			3,213,314				557,703
Liabilities
Accrued management and investment advisory fees		472			1,073				360
Accrued administrative service fees		3			2				4
Accrued distribution fees		501			139				100
Accrued service fees		12			9				13
Accrued transfer agent fees		281			156				162
Accrued directors' expenses		–			4				1
Accrued professional fees		14			28				17
Accrued other expenses		139			70				61
Payables:
Dividends payable		–			4,993				–
Fund shares redeemed		1,350			6,840				575
Investment securities purchased		50			97,058				2,008
Total Liabilities		2,822			110,372				3,301
Net Assets Applicable to Outstanding Shares	$	1,795,126		$	3,102,942			$	554,402
Net Assets Consist of:
Capital shares and additional paid-in-capital	$	1,482,298		$	3,108,781			$	462,985
Accumulated undistributed (overdistributed) net investment income (loss)		7,196			467				2,648
Accumulated undistributed (overdistributed) net realized gain (loss)		17,414			(16,073	)			11,576
Net unrealized appreciation (depreciation) of investments		288,218			9,767				77,193
Total Net Assets	$	1,795,126		$	3,102,942			$	554,402
Capital Stock (par value: $.01 per share):
Shares authorized		2,125,000			820,000				725,000
Net Asset Value Per Share:
Class A: Net Assets	$	926,183		$	340,470		$		214,666
Shares Issued and Outstanding		50,776			27,845				10,722
Net Asset Value per share	$	18.24		$	12.23		$		20.02
Maximum Offering Price	$	19.30		$	12.51		$		21.19
Class C: Net Assets	$	302,748		$	86,734		$		25,294
Shares Issued and Outstanding		18,091			7,089				1,375
Net Asset Value per share	$	16.73	^(a)	$	12.24	^(a)	$		18.40	^(a)
Class J: Net Assets	$	265,807		$	144,158		$		182,800
Shares Issued and Outstanding		15,010			11,795				9,491
Net Asset Value per share	$	17.71	^(a)	$	12.22	^(a)	$		19.26	^(a)
Class P: Net Assets	$	2,418		$	134,616		$		10,953
Shares Issued and Outstanding		135			11,013				516
Net Asset Value per share	$	17.86		$	12.22		$		21.24
Institutional: Net Assets	$	243,768		$	2,346,871		$		61,357
Shares Issued and Outstanding		13,622			192,044				2,879
Net Asset Value per share	$	17.90		$	12.22		$		21.31
R-1: Net Assets	$	2,133		$	1,338		$		2,535
Shares Issued and Outstanding		122			110				132
Net Asset Value per share	$	17.55		$	12.22		$		19.20
R-2: Net Assets	$	2,168		$	2,358		$		11,107
Shares Issued and Outstanding		123			193				572
Net Asset Value per share	$	17.63		$	12.22		$		19.40
R-3: Net Assets	$	17,423		$	21,159		$		12,944
Shares Issued and Outstanding		988			1,730				647
Net Asset Value per share	$	17.63		$	12.23		$		20.01
R-4: Net Assets	$	11,621		$	13,199		$		13,799
Shares Issued and Outstanding		654			1,079				666
Net Asset Value per share	$	17.77		$	12.23		$		20.70
R-5: Net Assets	$	20,857		$	12,039		$		18,947
Shares Issued and Outstanding		1,176			984				898
Net Asset Value per share	$	17.74		$	12.23		$		21.10


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



			SmallCap			SmallCap S&P 600				SmallCap
Amounts in thousands, except per share amounts			Growth Fund I			Index Fund				Value Fund II
Investment in securities--at cost		$	1,250,914		$	965,810			$	1,116,239
Assets
Investment in securities--at value		$	1,394,347		$	1,120,017			$	1,215,393
Cash			10,804			–				–
Deposits with counterparty			4,503			797				5,000
Receivables:
Dividends and interest			142			419				400
Expense reimbursement from Manager			101			–				33
Expense reimbursement from Distributor			1			2				–
Fund shares sold			263			928				584
Investment securities sold			9,674			–				3,479
Variation margin on financial derivative instruments			406			73				309
	Total Assets		1,420,241			1,122,236				1,225,198
Liabilities
Accrued management and investment advisory fees			1,334			145				1,037
Accrued administrative service fees			3			17				2
Accrued distribution fees			13			60				8
Accrued service fees			15			89				11
Accrued transfer agent fees			40			81				31
Accrued directors' expenses			1			1				–
Accrued professional fees			18			18				19
Accrued other expenses			40			38				42
Payables:
Fund shares redeemed			1,729			2,399				394
Investment securities purchased			7,142			584				4,533
	Total Liabilities		10,335			3,432				6,077
Net Assets Applicable to Outstanding Shares		$	1,409,906		$	1,118,804			$	1,219,121
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	1,244,975		$	898,563			$	1,055,623
Accumulated undistributed (overdistributed) net investment income (loss)			(6,222	)		8,398				3,538
Accumulated undistributed (overdistributed) net realized gain (loss)			31,187			57,958				63,749
Net unrealized appreciation (depreciation) of investments			139,966			153,885				96,211
	Total Net Assets	$	1,409,906		$	1,118,804			$	1,219,121
Capital Stock (par value: $.01 per share):
Shares authorized			645,000			325,000				750,000
Net Asset Value Per Share:
Class A: Net Assets			N/A			N/A		$		2,862
Shares Issued and Outstanding										242
Net Asset Value per share								$		11.84
Maximum Offering Price								$		12.53
Class J: Net Assets	$		47,535		$	149,939		$		18,069
Shares Issued and Outstanding			5,536			6,704				1,549
Net Asset Value per share	$		8.59	^(a)	$	22.37	^(a)	$		11.66	^(a)
Class P: Net Assets			N/A			N/A		$		333
Shares Issued and Outstanding										28
Net Asset Value per share								$		11.78
Institutional: Net Assets	$		1,292,151		$	558,869		$		1,144,250
Shares Issued and Outstanding			116,145			23,840				95,817
Net Asset Value per share	$		11.13		$	23.44		$		11.94
R-1: Net Assets	$		2,148		$	12,570		$		1,434
Shares Issued and Outstanding			228			545				130
Net Asset Value per share	$		9.42		$	23.06		$		11.01
R-2: Net Assets	$		4,491		$	16,157		$		3,735
Shares Issued and Outstanding			490			684				335
Net Asset Value per share	$		9.17		$	23.62		$		11.15
R-3: Net Assets	$		16,020		$	119,969		$		13,501
Shares Issued and Outstanding			1,660			5,043				1,173
Net Asset Value per share	$		9.65		$	23.79		$		11.51
R-4: Net Assets	$		12,216		$	76,916		$		7,570
Shares Issued and Outstanding			1,203			3,204				650
Net Asset Value per share	$		10.15		$	24.01		$		11.65
R-5: Net Assets	$		34,740		$	184,384		$		23,856
Shares Issued and Outstanding			3,294			7,641				2,027
Net Asset Value per share	$		10.55		$	24.13		$		11.77
R-6: Net Assets	$		605			N/A		$		3,511
Shares Issued and Outstanding			54							294
Net Asset Value per share	$		11.11					$		11.93


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

			Tax-Exempt
Amounts in thousands, except per share amounts			Bond Fund
Investment in securities--at cost		$	414,056
Assets
Investment in securities--at value		$	431,109
Cash			12,377
Receivables:
Dividends and interest			6,201
Expense reimbursement from Manager			33
Fund shares sold			1,550
Investment securities sold			2,007
Other assets			9
	Total Assets		453,286
Liabilities
Accrued management and investment advisory fees			164
Accrued distribution fees			96
Accrued transfer agent fees			39
Accrued professional fees			26
Accrued other expenses			28
Payables:
Dividends payable			1,166
Fund shares redeemed			628
Interest expense and fees payable			54
Investment securities purchased			9,662
Floating rate notes issued			9,470
	Total Liabilities		21,333
Net Assets Applicable to Outstanding Shares		$	431,953
Net Assets Consist of:
Capital shares and additional paid-in-capital		$	430,393
Accumulated undistributed (overdistributed) net investment income (loss)			1,077
Accumulated undistributed (overdistributed) net realized gain (loss)			(16,570	)
Net unrealized appreciation (depreciation) of investments			17,053
	Total Net Assets	$	431,953
Capital Stock (par value: $.01 per share):
Shares authorized			600,000
Net Asset Value Per Share:
Class A: Net Assets	$		326,545
Shares Issued and Outstanding			43,998
Net Asset Value per share	$		7.42
Maximum Offering Price	$		7.71
Class C: Net Assets	$		31,846
Shares Issued and Outstanding			4,279
Net Asset Value per share	$		7.44	^(a)
Class P: Net Assets	$		69,216
Shares Issued and Outstanding			9,333
Net Asset Value per share	$		7.42
Institutional: Net Assets	$		4,346
Shares Issued and Outstanding			585
Net Asset Value per share	$		7.43


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

	California			Core Plus			Diversified
Amounts in thousands	Municipal Fund			Bond Fund			International Fund
Net Investment Income (Loss)
Income:
Dividends	$	–	$	1,065		$	198,510
Withholding tax		–		(39	)		(21,439	)
Interest		14,259		126,178			434
Total Income		14,259		127,204			177,505
Expenses:
Management and investment advisory fees		1,562		20,355			56,939
Distribution fees - Class A		662		238			567
Distribution fees - Class C		325		84			140
Distribution fees - Class J		N/A		261			283
Distribution fees - R-1		N/A		21			16
Distribution fees - R-2		N/A		33			19
Distribution fees - R-3		N/A		72			79
Distribution fees - R-4		N/A		22			35
Administrative service fees - R-1		N/A		17			13
Administrative service fees - R-2		N/A		22			13
Administrative service fees - R-3		N/A		20			22
Administrative service fees - R-4		N/A		6			11
Administrative service fees - R-5		N/A		6			6
Registration fees - Class A		26		15			15
Registration fees - Class C		19		18			19
Registration fees - Class J		N/A		16			16
Registration fees - Class P		20		N/A			16
Registration fees - Institutional		18		28			119
Service fees - R-1		N/A		15			12
Service fees - R-2		N/A		27			16
Service fees - R-3		N/A		72			78
Service fees - R-4		N/A		55			87
Service fees - R-5		N/A		143			156
Shareholder reports - Class A		2		19			63
Shareholder reports - Class C		–		1			4
Shareholder reports - Class J		N/A		35			68
Shareholder reports - Class P		–		N/A			1
Shareholder reports - Institutional		–		9			21
Transfer agent fees - Class A		138		198			531
Transfer agent fees - Class C		26		22			40
Transfer agent fees - Class J		N/A		197			242
Transfer agent fees - Class P		30		N/A			5
Transfer agent fees - Institutional		1		98			203
Custodian fees		–		14			865
Directors' expenses		10		95			153
Interest expense and fees		157		–			–
Professional fees		27		51			203
Other expenses		8		17			49
Total Gross Expenses		3,031		22,302			61,125
Less: Reimbursement from Manager - Class A		–		106			–
Less: Reimbursement from Manager - Class C		–		22			30
Less: Reimbursement from Manager - Class P		23		N/A			14
Less: Reimbursement from Manager - Institutional		16		–			–
Less: Reimbursement from Distributor - Class J		N/A		49			55
Total Net Expenses		2,992		22,125			61,026
Net Investment Income (Loss)		11,267		105,079			116,479

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		468		(4,635	)		(113,690	)
Foreign currency transactions		–		(462	)		(3,048	)
Futures contracts		–		6,069			–
Litigation settlement		–		–			1,133
Swap agreements		–		(8,678	)		–
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $0, $0 and $1,521,
respectively)		1,388		94,125			33,735
Futures contracts		–		(695	)		–
Swap agreements		–		(125	)		–
Translation of assets and liabilities in foreign currencies		–		1,283			(57	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		1,856		86,882			(81,927	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	13,123	$	191,961		$	34,552


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

					Finisterre
					Unconstrained
					Emerging Markets			Global Diversified
Amounts in thousands	Equity Income Fund				Bond Fund^(a)			Income Fund
Net Investment Income (Loss)
Income:
Dividends	$	165,075		$	–		$	103,652
Withholding tax		(1,839	)		–			(5,418	)
Interest		197			440			592,832
Total Income		163,433			440			691,066
Expenses:
Management and investment advisory fees		27,154			79			76,671
Distribution fees - Class A		2,253			–			5,230
Distribution fees - Class C		1,831			N/A			24,661
Distribution fees - R-1		8			N/A			N/A
Distribution fees - R-2		16			N/A			N/A
Distribution fees - R-3		154			N/A			N/A
Distribution fees - R-4		51			N/A			N/A
Administrative service fees - R-1		6			N/A			N/A
Administrative service fees - R-2		11			N/A			N/A
Administrative service fees - R-3		43			N/A			N/A
Administrative service fees - R-4		15			N/A			N/A
Administrative service fees - R-5		11			N/A			N/A
Registration fees - Class A		26			18			59
Registration fees - Class C		20			N/A			52
Registration fees - Class P		15			17			73
Registration fees - Institutional		36			18			101
Service fees - R-1		6			N/A			N/A
Service fees - R-2		13			N/A			N/A
Service fees - R-3		154			N/A			N/A
Service fees - R-4		129			N/A			N/A
Service fees - R-5		269			N/A			N/A
Shareholder reports - Class A		121			–			370
Shareholder reports - Class C		17			N/A			410
Shareholder reports - Class P		7			–			375
Shareholder reports - Institutional		5			–			221
Transfer agent fees - Class A		1,140			3			1,951
Transfer agent fees - Class C		211			N/A			2,504
Transfer agent fees - Class P		86			–			2,091
Transfer agent fees - Institutional		180			–			917
Custodian fees		70			9			400
Directors' expenses		117			–			235
Dividends and interest on securities sold short		–			–			10,599
Professional fees		30			29			198
Short sale fees		–			–			295
Other expenses		47			1			118
Total Gross Expenses		34,252			174			127,531
Less: Reimbursement from Manager - Class A		–			21			–
Less: Reimbursement from Manager - Class P		–			18			–
Less: Reimbursement from Manager - Institutional		–			49			–
Total Net Expenses		34,252			86			127,531
Net Investment Income (Loss)		129,181			354			563,535

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		105,416			238			(280,895	)
Foreign currency transactions		(14	)		44			16,574
Futures contracts		–			7			(52	)
Options and swaptions		–			–			44,979
Litigation settlement		2			–			19
Short sales		–			–			(26,543	)
Swap agreements		–			(34	)		2,239
Change in unrealized appreciation/depreciation of:
Investments		68,387			13			303,576
Futures contracts		–			27			56
Options and swaptions		–			–			23,355
Swap agreements		–			20			1,709
Translation of assets and liabilities in foreign currencies		(1	)		3			(1,353	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		173,790			318			83,664
Net Increase (Decrease) in Net Assets Resulting from Operations	$	302,971		$	672		$	647,199


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

	Global Real Estate				Government & High
Amounts in thousands	Securities Fund^(a)				Quality Bond Fund			High Yield Fund
Net Investment Income (Loss)
Income:
Dividends	$	83,418		$	–		$	69
Withholding tax		(4,051	)		–			–
Interest		98			57,320			223,065
Total Income		79,465			57,320			223,134
Expenses:
Management and investment advisory fees		26,428			7,759			17,138
Distribution fees - Class A		414			770			2,235
Distribution fees - Class C		562			589			3,781
Distribution fees - Class J		N/A			230			N/A
Distribution fees - R-1		N/A			9			N/A
Distribution fees - R-2		N/A			34			N/A
Distribution fees - R-3		–			39			N/A
Distribution fees - R-4		–			12			N/A
Administrative service fees - R-1		N/A			7			N/A
Administrative service fees - R-2		N/A			23			N/A
Administrative service fees - R-3		–			11			N/A
Administrative service fees - R-4		–			4			N/A
Administrative service fees - R-5		–			2			N/A
Registration fees - Class A		30			31			46
Registration fees - Class C		18			23			28
Registration fees - Class J		N/A			26			N/A
Registration fees - Class P		39			19			19
Registration fees - Institutional		60			24			103
Registration fees - R-6		22			N/A			N/A
Service fees - R-1		N/A			7			N/A
Service fees - R-2		N/A			28			N/A
Service fees - R-3		–			39			N/A
Service fees - R-4		–			30			N/A
Service fees - R-5		–			59			N/A
Shareholder reports - Class A		39			40			84
Shareholder reports - Class C		12			6			36
Shareholder reports - Class J		N/A			40			N/A
Shareholder reports - Class P		34			1			49
Shareholder reports - Institutional		56			18			164
Transfer agent fees - Class A		260			404			1,073
Transfer agent fees - Class C		100			71			428
Transfer agent fees - Class J		N/A			188			N/A
Transfer agent fees - Class P		274			11			401
Transfer agent fees - Institutional		535			176			1,672
Custodian fees		152			7			12
Directors' expenses		67			35			74
Professional fees		117			32			45
Other expenses		26			14			40
Total Gross Expenses		29,245			10,818			27,428
Less: Reimbursement from Manager - Class C		–			27			–
Less: Reimbursement from Manager - Institutional		–			–			395
Less: Reimbursement from Manager - R-1		N/A			3			N/A
Less: Reimbursement from Manager - R-2		N/A			11			N/A
Less: Reimbursement from Manager - R-3		–			15			N/A
Less: Reimbursement from Manager - R-4		–			11			N/A
Less: Reimbursement from Manager - R-5		–			23			N/A
Less: Reimbursement from Manager - R-6		22			N/A			N/A
Less: Reimbursement from Distributor - Class A		–			308			–
Less: Reimbursement from Distributor - Class J		N/A			43			N/A
Total Net Expenses		29,223			10,377			27,033
Net Investment Income (Loss)		50,242			46,943			196,101

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		47,938			(2,924	)		(111,602	)
Foreign currency transactions		(1,002	)		–			173
Litigation settlement		–			–			117
Swap agreements		–			–			(497	)
Change in unrealized appreciation/depreciation of:
Investments		(99,167	)		990			156,495
Swap agreements		–			–			(287	)
Translation of assets and liabilities in foreign currencies		(90	)		–			233
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(52,321	)		(1,934	)		44,632
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(2,079	)	$	45,009		$	240,733


^(a)R-3, R-4 and R-5 shares commenced operations on March 1, 2016.


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

								Inflation
Amounts in thousands	High Yield Fund I				Income Fund			Protection Fund
Net Investment Income (Loss)
Income:
Dividends	$	81		$	2		$	–
Interest		56,733			117,227			21,654
Total Income		56,814			117,229			21,654
Expenses:
Management and investment advisory fees		5,671			15,189			6,459
Distribution fees - Class A		11			659			33
Distribution fees - Class C		N/A			651			38
Distribution fees - Class J		N/A			157			13
Distribution fees - R-1		N/A			59			3
Distribution fees - R-2		N/A			9			2
Distribution fees - R-3		N/A			80			12
Distribution fees - R-4		N/A			25			2
Administrative service fees - R-1		N/A			47			2
Administrative service fees - R-2		N/A			6			1
Administrative service fees - R-3		N/A			22			4
Administrative service fees - R-4		N/A			8			1
Administrative service fees - R-5		N/A			5			–
Registration fees - Class A		22			29			15
Registration fees - Class C		N/A			23			17
Registration fees - Class J		N/A			18			17
Registration fees - Class P		N/A			17			N/A
Registration fees - Institutional		29			43			22
Registration fees - R-6		N/A			19			N/A
Service fees - R-1		N/A			42			2
Service fees - R-2		N/A			8			1
Service fees - R-3		N/A			80			13
Service fees - R-4		N/A			63			5
Service fees - R-5		N/A			120			11
Shareholder reports - Class A		2			35			2
Shareholder reports - Class C		N/A			10			1
Shareholder reports - Class J		N/A			17			2
Shareholder reports - Class P		N/A			1			N/A
Shareholder reports - Institutional		7			22			–
Transfer agent fees - Class A		1			317			20
Transfer agent fees - Class C		N/A			102			15
Transfer agent fees - Class J		N/A			115			24
Transfer agent fees - Class P		N/A			23			N/A
Transfer agent fees - Institutional		56			207			4
Custodian fees		32			5			33
Directors' expenses		22			72			39
Professional fees		40			36			33
Other expenses		10			24			15
Total Gross Expenses		5,903			18,365			6,861
Less: Reimbursement from Manager - Class A		19			–			1
Less: Reimbursement from Manager - Class C		N/A			–			24
Less: Reimbursement from Manager - R-6		N/A			16			N/A
Less: Reimbursement from Distributor - Class J		N/A			29			2
Total Net Expenses		5,884			18,320			6,834
Net Investment Income (Loss)		50,930			98,909			14,820

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		(35,774	)		(19,217	)		(14,992	)
Foreign currency transactions		–			–			(4,165	)
Futures contracts		–			–			(3,343	)
Options and swaptions		–			–			10,655
Swap agreements		–			–			(6,903	)
Change in unrealized appreciation/depreciation of:
Investments		53,607			87,917			84,791
Futures contracts		–			–			2,741
Options and swaptions		–			–			700
Swap agreements		–			–			3,008
Translation of assets and liabilities in foreign currencies		–			–			509
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		17,833			68,700			73,001
Net Increase (Decrease) in Net Assets Resulting from Operations	$	68,763		$	167,609		$	87,821


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

		International
		Emerging						LargeCap
Amounts in thousands		Markets Fund			International Fund I			Growth Fund
Net Investment Income (Loss)
Income:
Dividends	$	26,742		$	8,869		$	27,116
Withholding tax		(3,412	)		(1,017	)		–
Interest		33			20			147
Total Income		23,363			7,872			27,263
Expenses:
Management and investment advisory fees		12,360			3,492			15,566
Distribution fees - Class A		183			13			873
Distribution fees - Class C		88			N/A			174
Distribution fees - Class J		155			N/A			108
Distribution fees - R-1		9			11			17
Distribution fees - R-2		9			8			9
Distribution fees - R-3		25			13			43
Distribution fees - R-4		8			3			12
Administrative service fees - R-1		7			9			14
Administrative service fees - R-2		6			5			6
Administrative service fees - R-3		7			4			12
Administrative service fees - R-4		3			1			3
Administrative service fees - R-5		2			–			6
Registration fees - Class A		14			17			18
Registration fees - Class C		17			N/A			18
Registration fees - Class J		15			N/A			17
Registration fees - Class P		16			18			16
Registration fees - Institutional		26			20			16
Service fees - R-1		6			8			12
Service fees - R-2		8			6			8
Service fees - R-3		25			13			43
Service fees - R-4		20			9			29
Service fees - R-5		47			12			138
Shareholder reports - Class A		28			3			83
Shareholder reports - Class C		4			N/A			3
Shareholder reports - Class J		47			N/A			18
Shareholder reports - Class P		–			1			1
Shareholder reports - Institutional		25			7			2
Transfer agent fees - Class A		231			21			684
Transfer agent fees - Class C		40			N/A			38
Transfer agent fees - Class J		171			N/A			76
Transfer agent fees - Class P		2			22			8
Transfer agent fees - Institutional		138			92			344
Custodian fees		479			50			2
Directors' expenses		24			10			55
Professional fees		99			160			25
Other expenses		16			34			24
Total Gross Expenses		14,360			4,062			18,521
Less: Reimbursement from Manager - Class A		90			29			–
Less: Reimbursement from Manager - Class C		13			N/A			–
Less: Reimbursement from Manager - Class P		17			–			5
Less: Reimbursement from Manager - Institutional		–			16			–
Less: Reimbursement from Distributor - Class J		30			N/A			21
Total Net Expenses		14,210			4,017			18,495
Net Investment Income (Loss)		9,153			3,855			8,768

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 (net of foreign taxes of $1,112, $0 and $0, respectively)		(112,484	)		(17,094	)		296,482
Foreign currency transactions		(1,558	)		(370	)		–
Futures contracts		–			(753	)		–
Litigation settlement		3,330			287			–
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $631, $0 and $0, respectively) .		158,067			6,260			(418,694	)
Futures contracts		–			(1,016	)		–
Translation of assets and liabilities in foreign currencies		(129	)		46			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		47,226			(12,640	)		(122,212	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	56,379		$	(8,785	)	$	(113,444	)


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

	LargeCap				LargeCap			LargeCap S&P 500
Amounts in thousands	Growth Fund I				Growth Fund II			Index Fund
Net Investment Income (Loss)
Income:
Dividends	$	53,265		$	8,991		$	106,650
Withholding tax		(88	)		(8	)		(4	)
Interest		373			34			122
Total Income		53,550			9,017			106,768
Expenses:
Management and investment advisory fees		42,689			5,088			7,305
Distribution fees - Class A		52			N/A			407
Distribution fees - Class C		N/A			N/A			387
Distribution fees - Class J		197			55			861
Distribution fees - R-1		25			4			68
Distribution fees - R-2		45			5			95
Distribution fees - R-3		328			12			503
Distribution fees - R-4		83			2			200
Administrative service fees - R-1		20			3			54
Administrative service fees - R-2		30			3			63
Administrative service fees - R-3		92			3			141
Administrative service fees - R-4		25			1			60
Administrative service fees - R-5		28			–			40
Registration fees - Class A		16			N/A			27
Registration fees - Class C		N/A			N/A			21
Registration fees - Class J		21			15			25
Registration fees - Class P		14			N/A			N/A
Registration fees - Institutional		107			20			45
Registration fees - R-6		20			N/A			N/A
Service fees - R-1		18			2			48
Service fees - R-2		37			4			79
Service fees - R-3		328			12			504
Service fees - R-4		207			6			499
Service fees - R-5		719			14			988
Shareholder reports - Class A		4			N/A			57
Shareholder reports - Class C		N/A			N/A			6
Shareholder reports - Class J		25			11			98
Shareholder reports - Institutional		138			–			29
Transfer agent fees - Class A		45			N/A			403
Transfer agent fees - Class C		N/A			N/A			52
Transfer agent fees - Class J		142			50			431
Transfer agent fees - Class P		1			N/A			N/A
Transfer agent fees - Institutional		1,480			1			201
Custodian fees		32			17			9
Directors' expenses		155			16			106
Professional fees		35			21			28
Other expenses		68			8			86
Total Gross Expenses		47,226			5,373			13,926
Less: Reimbursement from Manager		1,132			252			–
Less: Reimbursement from Manager - Class C		N/A			N/A			23
Less: Reimbursement from Manager - Class P		14			N/A			N/A
Less: Reimbursement from Manager - R-6		19			N/A			N/A
Less: Reimbursement from Distributor - Class J		38			11			163
Total Net Expenses		46,023			5,110			13,740
Net Investment Income (Loss)		7,527			3,907			93,028

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		313,758			17,575			78,745
Foreign currency transactions		–			25			–
Futures contracts		20,755			1,990			9,599
Change in unrealized appreciation/depreciation of:
Investments		(302,655	)		(21,155	)		27,850
Futures contracts		(14,733	)		(819	)		(4,943	)
Translation of assets and liabilities in foreign currencies		–			34			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		17,125			(2,350	)		111,251
Net Increase (Decrease) in Net Assets Resulting from Operations	$	24,652		$	1,557		$	204,279


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

		LargeCap			LargeCap
Amounts in thousands		Value Fund			Value Fund III			MidCap Fund
Net Investment Income (Loss)
Income:
Dividends	$	58,948		$	47,937		$	131,043
Withholding tax		–			(197	)		(2,785	)
Interest		57			138			49
Total Income		59,005			47,878			128,307
Expenses:
Management and investment advisory fees		9,917			13,847			64,410
Distribution fees - Class A		473			N/A			4,773
Distribution fees - Class C		67			N/A			3,233
Distribution fees - Class J		109			115			441
Distribution fees - R-1		5			15			218
Distribution fees - R-2		6			10			88
Distribution fees - R-3		9			29			331
Distribution fees - R-4		2			6			146
Administrative service fees - R-1		4			12			174
Administrative service fees - R-2		4			6			58
Administrative service fees - R-3		3			8			93
Administrative service fees - R-4		1			2			44
Administrative service fees - R-5		–			1			31
Registration fees - Class A		14			N/A			43
Registration fees - Class C		18			N/A			22
Registration fees - Class J		15			13			17
Registration fees - Class P		13			N/A			153
Registration fees - Institutional		30			21			178
Service fees - R-1		4			11			156
Service fees - R-2		5			8			73
Service fees - R-3		9			28			331
Service fees - R-4		4			15			366
Service fees - R-5		11			19			765
Shareholder reports - Class A		42			N/A			252
Shareholder reports - Class C		2			N/A			29
Shareholder reports - Class J		21			22			54
Shareholder reports - Class P		–			N/A			350
Shareholder reports - Institutional		20			–			380
Transfer agent fees - Class A		321			N/A			2,557
Transfer agent fees - Class C		21			N/A			390
Transfer agent fees - Class J		75			85			158
Transfer agent fees - Class P		1			N/A			2,175
Transfer agent fees - Institutional		153			1			3,849
Custodian fees		3			6			8
Directors' expenses		54			43			237
Professional fees		24			22			41
Other expenses		17			12			148
Total Gross Expenses		11,477			14,357			86,772
Less: Reimbursement from Manager		–			214			–
Less: Reimbursement from Manager - Class C		22			N/A			–
Less: Reimbursement from Manager - Class P		14			N/A			–
Less: Reimbursement from Distributor - Class J		21			22			85
Total Net Expenses		11,420			14,121			86,687
Net Investment Income (Loss)		47,585			33,757			41,620

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		56,849			46,270			287,701
Investment transactions in affiliated securities		–			–			(723	)
Futures contracts		–			9,128			–
Change in unrealized appreciation/depreciation of:
Investments		(132,928	)		(25,312	)		197,702
Investment in affiliated securities		–			–			(74,471	)
Futures contracts		–			(5,319	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(76,079	)		24,767			410,209
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(28,494	)	$	58,524		$	451,829


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

		MidCap			MidCap			MidCap S&P 400
Amounts in thousands		Growth Fund			Growth Fund III			Index Fund
Net Investment Income (Loss)
Income:
Dividends	$	1,536		$	12,190		$	20,483
Withholding tax		(2	)		(10	)		–
Interest		8			119			47
Securities lending - net		2			–			–
Total Income		1,544			12,299			20,530
Expenses:
Management and investment advisory fees		870			13,171			1,744
Distribution fees - Class J		93			55			160
Distribution fees - R-1		5			8			54
Distribution fees - R-2		12			10			49
Distribution fees - R-3		28			18			264
Distribution fees - R-4		6			7			108
Administrative service fees - R-1		4			7			43
Administrative service fees - R-2		7			6			33
Administrative service fees - R-3		8			5			74
Administrative service fees - R-4		2			2			32
Administrative service fees - R-5		2			1			19
Registration fees - Class J		18			15			18
Registration fees - Institutional		20			29			51
Service fees - R-1		4			6			39
Service fees - R-2		9			8			41
Service fees - R-3		28			18			264
Service fees - R-4		15			17			269
Service fees - R-5		43			22			477
Shareholder reports - Class J		14			10			21
Shareholder reports - Institutional		1			–			29
Transfer agent fees - Class J		87			48			157
Transfer agent fees - Institutional		33			1			191
Custodian fees		3			16			8
Directors' expenses		5			32			27
Professional fees		20			22			22
Other expenses		3			11			24
Total Gross Expenses		1,340			13,545			4,218
Less: Reimbursement from Manager		–			435			–
Less: Reimbursement from Manager - Institutional		23			–			–
Less: Reimbursement from Distributor - Class J		18			11			30
Total Net Expenses		1,299			13,099			4,188
Net Investment Income (Loss)		245			(800	)		16,342

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		(7,645	)		(937	)		72,150
Futures contracts		–			5,698			1,003
Change in unrealized appreciation/depreciation of:
Investments		3,439			(16,498	)		(25,001	)
Futures contracts		–			(3,085	)		(399	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(4,206	)		(14,822	)		47,753
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(3,961	)	$	(15,622	)	$	64,095


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

		MidCap			MidCap
Amounts in thousands		Value Fund I			Value Fund III			Money Market Fund
Net Investment Income (Loss)
Income:
Dividends	$	32,807		$	26,408		$	–
Withholding tax		(37	)		(45	)		–
Interest		89			105			4,803
Total Income		32,859			26,468			4,803
Expenses:
Management and investment advisory fees		13,694			7,105			3,848
Distribution fees - Class A		N/A			35			–
Distribution fees - Class C		N/A			N/A			241
Distribution fees - Class J		111			163			436
Distribution fees - R-1		17			5			N/A
Distribution fees - R-2		19			6			N/A
Distribution fees - R-3		61			40			N/A
Distribution fees - R-4		22			19			N/A
Administrative service fees - R-1		13			4			N/A
Administrative service fees - R-2		13			4			N/A
Administrative service fees - R-3		17			11			N/A
Administrative service fees - R-4		7			6			N/A
Administrative service fees - R-5		6			3			N/A
Registration fees - Class A		N/A			15			96
Registration fees - Class C		N/A			N/A			25
Registration fees - Class J		15			15			35
Registration fees - Class P		N/A			15			N/A
Registration fees - Institutional		29			29			35
Registration fees - R-6		N/A			20			N/A
Service fees - R-1		12			3			N/A
Service fees - R-2		16			5			N/A
Service fees - R-3		61			41			N/A
Service fees - R-4		56			47			N/A
Service fees - R-5		142			69			N/A
Shareholder reports - Class A		N/A			4			52
Shareholder reports - Class C		N/A			N/A			2
Shareholder reports - Class J		27			28			95
Shareholder reports - Institutional		34			6			2
Transfer agent fees - Class A		N/A			39			484
Transfer agent fees - Class C		N/A			N/A			31
Transfer agent fees - Class J		83			100			365
Transfer agent fees - Institutional		215			157			6
Custodian fees		33			19			13
Directors' expenses		32			26			24
Professional fees		24			25			33
Other expenses		18			9			13
Total Gross Expenses		14,777			8,073			5,836
Less: Reimbursement from Manager		1,072			156			–
Less: Reimbursement from Manager - Class A		N/A			1			176
Less: Reimbursement from Manager - Class C		N/A			N/A			36
Less: Reimbursement from Manager - Class J		–			–			237
Less: Reimbursement from Manager - Class P		N/A			15			N/A
Less: Reimbursement from Manager - R-6		N/A			18			N/A
Less: Reimbursement from Distributor - Class C		N/A			N/A			241
Less: Reimbursement from Distributor - Class J		21			31			436
Total Net Expenses		13,684			7,852			4,710
Net Investment Income (Loss)		19,175			18,616			93

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		(7,045	)		2,739			54
Futures contracts		8,819			6,005			–
Change in unrealized appreciation/depreciation of:
Investments		8,502			(15,945	)		–
Futures contracts		(1,641	)		(2,615	)		–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		8,635			(9,816	)		54
Net Increase (Decrease) in Net Assets Resulting from Operations	$	27,810		$	8,800		$	147


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

					Principal Capital			Principal LifeTime
Amounts in thousands	Overseas Fund				Appreciation Fund			2010 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	–			$ –		$	25,135
Dividends		95,635			49,544			–
Withholding tax		(8,972	)		(16	)		–
Interest		249			91			–
Total Income		86,912			49,619			25,135
Expenses:
Management and investment advisory fees		29,708			11,356			130
Distribution fees - Class A		N/A			2,254			89
Distribution fees - Class C		N/A			476			N/A
Distribution fees - Class J		N/A			N/A			407
Distribution fees - R-1		–			13			34
Distribution fees - R-2		–			11			31
Distribution fees - R-3		1			80			140
Distribution fees - R-4		–			22			33
Administrative service fees - R-1		–			10			27
Administrative service fees - R-2		–			7			21
Administrative service fees - R-3		–			22			39
Administrative service fees - R-4		–			7			10
Administrative service fees - R-5		–			5			8
Registration fees - Class A		N/A			34			17
Registration fees - Class C		N/A			20			N/A
Registration fees - Class J		N/A			N/A			20
Registration fees - Class P		N/A			16			N/A
Registration fees - Institutional		61			25			33
Service fees - R-1		–			9			24
Service fees - R-2		–			9			26
Service fees - R-3		1			80			140
Service fees - R-4		1			54			83
Service fees - R-5		1			128			204
Shareholder reports - Class A		N/A			150			4
Shareholder reports - Class C		N/A			9			N/A
Shareholder reports - Class J		N/A			N/A			18
Shareholder reports - Class P		N/A			3			N/A
Shareholder reports - Institutional		21			21			–
Transfer agent fees - Class A		N/A			1,012			47
Transfer agent fees - Class C		N/A			74			N/A
Transfer agent fees - Class J		N/A			N/A			105
Transfer agent fees - Class P		N/A			27			N/A
Transfer agent fees - Institutional		131			210			12
Custodian fees		373			3			–
Directors' expenses		62			58			31
Professional fees		256			23			142
Other expenses		18			25			17
Total Gross Expenses		30,634			16,253			1,892
Less: Reimbursement from Manager		838			–			–
Less: Reimbursement from Manager - Class A		N/A			–			28
Less: Reimbursement from Distributor - Class J		N/A			N/A			77
Total Net Expenses		29,796			16,253			1,787
Net Investment Income (Loss)		57,116			33,366			23,348

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		(58,940	)		244,368			–
Investment transactions in affiliated Funds		–			–			14,105
Foreign currency transactions		(1,366	)		–			–
Futures contracts		7,342			–			–
Capital gain distribution received from affiliated Funds		–			–			17,671
Litigation settlement		380			–			–
Change in unrealized appreciation/depreciation of:
Investments		(91,115	)		(225,461	)		–
Investments in affiliated Funds		–			–			(18,106	)
Futures contracts		(4,908	)		–			–
Translation of assets and liabilities in foreign currencies		260			–			–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(148,347	)		18,907			13,670
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(91,231	)	$	52,273		$	37,018


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

	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands	2015 Fund				2020 Fund			2025 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	14,971		$	110,723		$	27,465
Total Income		14,971			110,723			27,465
Expenses:
Management and investment advisory fees		79			591			150
Distribution fees - Class A		N/A			300			N/A
Distribution fees - Class J		N/A			1,478			N/A
Distribution fees - R-1		31			149			53
Distribution fees - R-2		30			159			57
Distribution fees - R-3		199			637			429
Distribution fees - R-4		49			182			86
Administrative service fees - R-1		25			119			43
Administrative service fees - R-2		20			106			38
Administrative service fees - R-3		56			178			120
Administrative service fees - R-4		14			55			26
Administrative service fees - R-5		7			40			13
Registration fees - Class A		N/A			18			N/A
Registration fees - Class J		N/A			39			N/A
Registration fees - Institutional		25			90			53
Service fees - R-1		23			106			38
Service fees - R-2		25			133			47
Service fees - R-3		199			637			430
Service fees - R-4		121			456			214
Service fees - R-5		171			1,001			329
Shareholder reports - Class A		N/A			15			N/A
Shareholder reports - Class J		N/A			62			N/A
Shareholder reports - Institutional		2			2			3
Transfer agent fees - Class A		N/A			152			N/A
Transfer agent fees - Class J		N/A			358			N/A
Transfer agent fees - Institutional		10			71			29
Directors' expenses		19			137			35
Professional fees		17			151			18
Other expenses		9			69			17
Total Gross Expenses		1,131			7,491			2,228
Less: Reimbursement from Manager - Class A		N/A			37			N/A
Less: Reimbursement from Distributor - Class J		N/A			280			N/A
Total Net Expenses		1,131			7,174			2,228
Net Investment Income (Loss)		13,840			103,549			25,237

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 in affiliated Funds		3,956			14,628			(1,088	)
Capital gain distribution received from affiliated Funds		11,772			110,037			31,122
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(8,305	)		(75,924	)		(14,511	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		7,423			48,741			15,523
Net Increase (Decrease) in Net Assets Resulting from Operations	$	21,263		$	152,290		$	40,760


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

	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands	2030 Fund				2035 Fund			2040 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	110,977		$	18,521		$	66,432
Total Income		110,977			18,521			66,432
Expenses:
Management and investment advisory fees		635			115			418
Distribution fees - Class A		295			N/A			208
Distribution fees - Class J		1,731			N/A			1,009
Distribution fees - R-1		128			44			91
Distribution fees - R-2		158			42			103
Distribution fees - R-3		593			280			376
Distribution fees - R-4		189			67			128
Administrative service fees - R-1		102			35			73
Administrative service fees - R-2		105			28			69
Administrative service fees - R-3		166			79			105
Administrative service fees - R-4		57			20			38
Administrative service fees - R-5		39			10			27
Registration fees - Class A		18			N/A			18
Registration fees - Class J		38			N/A			30
Registration fees - Institutional		97			43			81
Service fees - R-1		91			31			65
Service fees - R-2		132			35			86
Service fees - R-3		593			280			376
Service fees - R-4		472			168			319
Service fees - R-5		978			254			684
Shareholder reports - Class A		21			N/A			20
Shareholder reports - Class J		92			N/A			70
Shareholder reports - Institutional		3			4			4
Transfer agent fees - Class A		175			N/A			145
Transfer agent fees - Class J		554			N/A			457
Transfer agent fees - Institutional		71			28			54
Directors' expenses		147			27			97
Professional fees		152			18			148
Other expenses		74			13			50
Total Gross Expenses		7,906			1,621			5,349
Less: Reimbursement from Manager - Class A		68			N/A			81
Less: Reimbursement from Distributor - Class J		327			N/A			191
Total Net Expenses		7,511			1,621			5,077
Net Investment Income (Loss)		103,466			16,900			61,355

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 in affiliated Funds		4,663			(1,155	)		9,565
Capital gain distribution received from affiliated Funds		162,033			39,383			150,905
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(145,063	)		(38,901	)		(178,217	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		21,633			(673	)		(17,747	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	125,099		$	16,227		$	43,608


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

	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands	2045 Fund				2050 Fund			2055 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	11,350		$	33,567		$	3,424
Total Income		11,350			33,567			3,424
Expenses:
Management and investment advisory fees		72			217			22
Distribution fees - Class A		N/A			160			N/A
Distribution fees - Class J		N/A			309			N/A
Distribution fees - R-1		25			58			9
Distribution fees - R-2		33			64			8
Distribution fees - R-3		168			188			46
Distribution fees - R-4		38			64			14
Administrative service fees - R-1		20			46			7
Administrative service fees - R-2		22			42			5
Administrative service fees - R-3		47			53			13
Administrative service fees - R-4		11			19			4
Administrative service fees - R-5		8			16			2
Registration fees - Class A		N/A			18			N/A
Registration fees - Class J		N/A			24			N/A
Registration fees - Institutional		39			68			27
Service fees - R-1		17			41			6
Service fees - R-2		27			53			6
Service fees - R-3		168			188			46
Service fees - R-4		96			160			35
Service fees - R-5		203			404			58
Shareholder reports - Class A		N/A			19			N/A
Shareholder reports - Class J		N/A			34			N/A
Shareholder reports - Institutional		5			5			5
Transfer agent fees - Class A		N/A			142			N/A
Transfer agent fees - Class J		N/A			316			N/A
Transfer agent fees - Institutional		23			34			6
Directors' expenses		18			54			7
Professional fees		17			144			16
Other expenses		9			27			3
Total Gross Expenses		1,066			2,967			345
Less: Reimbursement from Manager - Class A		N/A			103			N/A
Less: Reimbursement from Distributor - Class J		N/A			58			N/A
Total Net Expenses		1,066			2,806			345
Net Investment Income (Loss)		10,284			30,761			3,079

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 in affiliated Funds		49			1,785			(341	)
Capital gain distribution received from affiliated Funds		27,561			85,807			8,781
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(28,543	)		(97,582	)		(7,649	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(933	)		(9,990	)		791
Net Increase (Decrease) in Net Assets Resulting from Operations	$	9,351		$	20,771		$	3,870


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

	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands	2060 Fund				Hybrid 2015 Fund			Hybrid 2020 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	1,704		$	161		$	503
Total Income		1,704			161			503
Expenses:
Management and investment advisory fees		11			–			1
Distribution fees - Class J		8			N/A			N/A
Distribution fees - R-1		3			N/A			N/A
Distribution fees - R-2		2			N/A			N/A
Distribution fees - R-3		11			N/A			N/A
Distribution fees - R-4		3			N/A			N/A
Administrative service fees - R-1		2			N/A			N/A
Administrative service fees - R-2		2			N/A			N/A
Administrative service fees - R-3		3			N/A			N/A
Administrative service fees - R-4		1			N/A			N/A
Administrative service fees - R-5		1			N/A			N/A
Registration fees - Class J		14			N/A			N/A
Registration fees - Institutional		26			20			28
Registration fees - R-6		N/A			17			17
Service fees - R-1		2			N/A			N/A
Service fees - R-2		2			N/A			N/A
Service fees - R-3		11			N/A			N/A
Service fees - R-4		9			N/A			N/A
Service fees - R-5		18			N/A			N/A
Shareholder reports - Class J		2			N/A			N/A
Shareholder reports - Institutional		1			–			–
Transfer agent fees - Class J		35			N/A			N/A
Transfer agent fees - Institutional		1			–			1
Directors' expenses		5			2			3
Professional fees		16			15			15
Other expenses		2			1			1
Total Gross Expenses		191			55			66
Less: Reimbursement from Manager - Class J		41			N/A			N/A
Less: Reimbursement from Manager - Institutional		–			33			31
Less: Reimbursement from Manager - R-6		N/A			18			18
Less: Reimbursement from Distributor - Class J		1			N/A			N/A
Total Net Expenses		149			4			17
Net Investment Income (Loss)		1,555			157			486

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 in affiliated Funds		(299	)		(9	)		(36	)
Capital gain distribution received from affiliated Funds		4,233			53			205
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		(3,483	)		165			490
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		451			209			659
Net Increase (Decrease) in Net Assets Resulting from Operations	$	2,006		$	366		$	1,145


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

	Principal LifeTime			Principal LifeTime			Principal LifeTime
Amounts in thousands	Hybrid 2025 Fund			Hybrid 2030 Fund			Hybrid 2035 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	69	$	479		$	62
Total Income		69		479			62
Expenses:
Management and investment advisory fees		–		1			–
Registration fees - Institutional		18		30			18
Registration fees - R-6		17		17			17
Transfer agent fees - Institutional		1		–			–
Directors' expenses		2		3			2
Professional fees		15		15			15
Other expenses		1		1			1
Total Gross Expenses		54		67			53
Less: Reimbursement from Manager - Institutional		33		32			33
Less: Reimbursement from Manager - R-6		18		18			18
Total Net Expenses		3		17			2
Net Investment Income (Loss)		66		462			60

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 in affiliated Funds		1		(60	)		1
Capital gain distribution received from affiliated Funds		29		270			39
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		155		295			81
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		185		505			121
Net Increase (Decrease) in Net Assets Resulting from Operations	$	251	$	967		$	181


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


	Principal LifeTime				Principal LifeTime			Principal LifeTime
Amounts in thousands	Hybrid 2040 Fund				Hybrid 2045 Fund			Hybrid 2050 Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	241		$	39		$	135
Total Income		241			39			135
Expenses:
Registration fees - Institutional		24			18			21
Registration fees - R-6		17			17			17
Directors' expenses		2			2			2
Professional fees		15			15			15
Other expenses		1			1			1
Total Gross Expenses		59			53			56
Less: Reimbursement from Manager - Institutional		33			34			34
Less: Reimbursement from Manager - R-6		18			18			18
Total Net Expenses		8			1			4
Net Investment Income (Loss)		233			38			131

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 in affiliated Funds		(19	)		(1	)		(11	)
Capital gain distribution received from affiliated Funds		170			26			103
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		89			–			64
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		240			25			156
Net Increase (Decrease) in Net Assets Resulting from Operations	$	473		$	63		$	287


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

Amounts in thousands except Principal LifeTime Hybrid 2055 Fund and Principal	Principal LifeTime				Principal LifeTime		Principal LifeTime
LifeTime Hybrid 2060 Fund	Hybrid 2055 Fund				Hybrid 2060 Fund		Hybrid Income Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	7,680		$	2,837	$	72
Total Income		7,680			2,837		72
Expenses:
Management and investment advisory fees		14			5		–
Registration fees - Institutional		17,537			16,698		18
Registration fees - R-6		17,252			17,252		17
Shareholder reports - Institutional		32			32		–
Transfer agent fees - Institutional		201			195		–
Directors' expenses		2,203			2,195		2
Professional fees		15,184			15,184		15
Other expenses		1,214			1,211		1
Total Gross Expenses		53,637			52,772		53
Less: Reimbursement from Manager - Institutional		35,054			34,039		34
Less: Reimbursement from Manager - R-6		18,131			18,576		18
Total Net Expenses		452			157		1
Net Investment Income (Loss)		7,228			2,680		71

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 in affiliated Funds		(181	)		12		(5	)
Capital gain distribution received from affiliated Funds		5,409			2,051		10
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		6,468			12,125		37
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		11,696			14,188		42
Net Increase (Decrease) in Net Assets Resulting from Operations	$	18,924		$	16,868	$	113


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

	Principal LifeTime
		Strategic		Real Estate			SAM
Amounts in thousands		Income Fund		Securities Fund			Balanced Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	14,353	$	–		$	102,492
Dividends		–		62,626			5
Interest		–		158			–
Total Income		14,353		62,784			102,497
Expenses:
Management and investment advisory fees		69		21,940			14,576
Distribution fees - Class A		68		839			5,168
Distribution fees - Class C		N/A		479			7,510
Distribution fees - Class J		134		313			1,641
Distribution fees - R-1		17		27			12
Distribution fees - R-2		20		58			15
Distribution fees - R-3		67		168			169
Distribution fees - R-4		15		80			36
Administrative service fees - R-1		14		22			10
Administrative service fees - R-2		13		39			10
Administrative service fees - R-3		19		47			47
Administrative service fees - R-4		4		24			11
Administrative service fees - R-5		4		16			7
Registration fees - Class A		17		30			49
Registration fees - Class C		N/A		23			32
Registration fees - Class J		18		18			52
Registration fees - Class P		N/A		29			18
Registration fees - Institutional		40		111			28
Service fees - R-1		12		19			9
Service fees - R-2		17		48			13
Service fees - R-3		67		168			169
Service fees - R-4		37		201			88
Service fees - R-5		103		417			176
Shareholder reports - Class A		2		52			252
Shareholder reports - Class C		N/A		9			91
Shareholder reports - Class J		8		53			66
Shareholder reports - Class P		N/A		18			–
Shareholder reports - Institutional		1		92			–
Transfer agent fees - Class A		46		515			1,701
Transfer agent fees - Class C		N/A		86			581
Transfer agent fees - Class J		49		259			445
Transfer agent fees - Class P		N/A		92			3
Transfer agent fees - Institutional		8		763			4
Custodian fees		–		2			–
Directors' expenses		18		61			103
Professional fees		141		23			25
Other expenses		10		29			56
Total Gross Expenses		1,038		27,170			33,173
Less: Reimbursement from Manager - Class A		36		–			–
Less: Reimbursement from Manager - Class P		N/A		–			9
Less: Reimbursement from Distributor - Class J		25		58			310
Total Net Expenses		977		27,112			32,854
Net Investment Income (Loss)		13,376		35,672			69,643

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		–		94,268			–
Investment transactions in affiliated Funds		866		–			(18,821	)
Capital gain distribution received from affiliated Funds		4,607		–			110,428
Change in unrealized appreciation/depreciation of:
Investments		–		(15,113	)		–
Investments in affiliated Funds		5,328		–			(33,252	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		10,801		79,155			58,355
Net Increase (Decrease) in Net Assets Resulting from Operations	$	24,177	$	114,827		$	127,998


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

	SAM Conservative				SAM Conservative			SAM Flexible
Amounts in thousands	Balanced Portfolio				Growth Portfolio			Income Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	45,191		$	50,298		$	77,128
Dividends		3			3			3
Total Income		45,194			50,301			77,131
Expenses:
Management and investment advisory fees		5,207			9,337			7,160
Distribution fees - Class A		1,282			3,602			2,155
Distribution fees - Class C		2,620			5,266			3,501
Distribution fees - Class J		900			811			1,500
Distribution fees - R-1		9			10			3
Distribution fees - R-2		4			14			2
Distribution fees - R-3		41			68			21
Distribution fees - R-4		17			18			7
Administrative service fees - R-1		7			8			2
Administrative service fees - R-2		3			10			2
Administrative service fees - R-3		11			19			6
Administrative service fees - R-4		5			5			2
Administrative service fees - R-5		3			5			2
Registration fees - Class A		42			40			64
Registration fees - Class C		26			28			35
Registration fees - Class J		39			36			81
Registration fees - Class P		23			14			15
Registration fees - Institutional		25			21			18
Service fees - R-1		6			7			2
Service fees - R-2		4			12			2
Service fees - R-3		41			68			22
Service fees - R-4		42			44			18
Service fees - R-5		76			115			46
Shareholder reports - Class A		54			187			69
Shareholder reports - Class C		27			67			36
Shareholder reports - Class J		28			33			35
Transfer agent fees - Class A		395			1,210			520
Transfer agent fees - Class C		200			460			257
Transfer agent fees - Class J		241			253			455
Transfer agent fees - Class P		1			2			4
Transfer agent fees - Institutional		2			2			3
Directors' expenses		38			66			52
Professional fees		18			20			19
Other expenses		21			38			28
Total Gross Expenses		11,458			21,896			16,144
Less: Reimbursement from Manager - Class A		139			–			–
Less: Reimbursement from Manager - Class C		75			–			–
Less: Reimbursement from Manager - Class P		18			15			3
Less: Reimbursement from Distributor - Class J		170			154			277
Total Net Expenses		11,056			21,727			15,864
Net Investment Income (Loss)		34,138			28,574			61,267

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 in affiliated Funds		(11,646	)		(21,855	)		(11,999	)
Capital gain distribution received from affiliated Funds		27,041			98,336			17,460
Change in unrealized appreciation/depreciation of:
Investments in affiliated Funds		5,028			(48,392	)		27,616
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		20,423			28,089			33,077
Net Increase (Decrease) in Net Assets Resulting from Operations	$	54,561		$	56,663		$	94,344


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

	SAM Strategic				Short-Term
Amounts in thousands	Growth Portfolio				Income Fund		SmallCap Fund
Net Investment Income (Loss)
Income:
Dividends from affiliated Funds	$	32,745		$	–	$	–
Dividends		7			–		10,049
Withholding tax		–			–		(1	)
Interest		–			67,888		31
Total Income		32,752			67,888		10,079
Expenses:
Management and investment advisory fees		5,627			12,038		4,234
Distribution fees - Class A		2,367			477		544
Distribution fees - Class C		3,119			852		260
Distribution fees - Class J		445			224		311
Distribution fees - R-1		10			4		9
Distribution fees - R-2		8			7		22
Distribution fees - R-3		42			31		32
Distribution fees - R-4		13			13		12
Administrative service fees - R-1		8			3		7
Administrative service fees - R-2		5			5		15
Administrative service fees - R-3		12			9		9
Administrative service fees - R-4		4			4		4
Administrative service fees - R-5		2			1		2
Registration fees - Class A		38			42		24
Registration fees - Class C		24			22		20
Registration fees - Class J		27			25		17
Registration fees - Class P		14			31		16
Registration fees - Institutional		22			36		16
Service fees - R-1		7			3		7
Service fees - R-2		7			6		18
Service fees - R-3		42			31		32
Service fees - R-4		32			32		31
Service fees - R-5		54			28		46
Shareholder reports - Class A		156			28		55
Shareholder reports - Class C		50			9		6
Shareholder reports - Class J		24			24		54
Shareholder reports - Class P		–			5		1
Shareholder reports - Institutional		–			26		5
Transfer agent fees - Class A		982			332		437
Transfer agent fees - Class C		318			102		60
Transfer agent fees - Class J		168			157		171
Transfer agent fees - Class P		1			67		9
Transfer agent fees - Institutional		2			328		30
Custodian fees		–			8		2
Directors' expenses		41			66		15
Professional fees		18			34		21
Other expenses		24			25		8
Total Gross Expenses		13,713			15,135		6,562
Less: Reimbursement from Manager - Class C		–			–		3
Less: Reimbursement from Manager - Class P		13			–		12
Less: Reimbursement from Manager - Institutional		–			–		18
Less: Reimbursement from Manager - R-4		–			1		–
Less: Reimbursement from Distributor - Class J		85			41		60
Total Net Expenses		13,615			15,093		6,469
Net Investment Income (Loss)		19,137			52,795		3,610

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		–			4,016		18,603
Investment transactions in affiliated Funds		(10,350	)		–		–
Futures contracts		–			–		(16	)
Capital gain distribution received from affiliated Funds		66,123			–		–
Change in unrealized appreciation/depreciation of:
Investments		–			11,973		(19,345	)
Investments in affiliated Funds		(58,963	)		–		–
Futures contracts		–			–		(13	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		(3,190	)		15,989		(771	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	15,947		$	68,784	$	2,839


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

	SmallCap				SmallCap S&P 600			SmallCap
Amounts in thousands	Growth Fund I				Index Fund			Value Fund II
Net Investment Income (Loss)
Income:
Dividends	$	8,399		$	15,856		$	19,782
Withholding tax		(14	)		(2	)		(4	)
Interest		134			53			147
Securities lending - net		814			187			–
Total Income		9,333			16,094			19,925
Expenses:
Management and investment advisory fees		15,996			1,673			12,336
Distribution fees - Class A		N/A			N/A			6
Distribution fees - Class J		81			233			30
Distribution fees - R-1		9			42			6
Distribution fees - R-2		15			47			11
Distribution fees - R-3		44			301			32
Distribution fees - R-4		13			78			9
Administrative service fees - R-1		7			34			5
Administrative service fees - R-2		10			31			7
Administrative service fees - R-3		12			84			9
Administrative service fees - R-4		4			23			3
Administrative service fees - R-5		3			18			2
Registration fees - Class A		N/A			N/A			15
Registration fees - Class J		13			19			14
Registration fees - Class P		N/A			N/A			14
Registration fees - Institutional		19			39			24
Registration fees - R-6		20			N/A			20
Service fees - R-1		6			30			4
Service fees - R-2		13			39			9
Service fees - R-3		44			300			32
Service fees - R-4		32			196			23
Service fees - R-5		87			444			55
Shareholder reports - Class A		N/A			N/A			1
Shareholder reports - Class J		15			38			6
Shareholder reports - Institutional		17			29			16
Transfer agent fees - Class A		N/A			N/A			15
Transfer agent fees - Class J		67			190			34
Transfer agent fees - Class P		N/A			N/A			5
Transfer agent fees - Institutional		126			205			151
Custodian fees		48			13			63
Directors' expenses		35			26			29
Professional fees		18			22			25
Other expenses		16			23			13
Total Gross Expenses		16,770			4,177			13,024
Less: Reimbursement from Manager		1,066			–			301
Less: Reimbursement from Manager - Class A		N/A			N/A			26
Less: Reimbursement from Manager - Class P		N/A			N/A			15
Less: Reimbursement from Manager - Institutional		115			–			–
Less: Reimbursement from Manager - R-2		1			–			–
Less: Reimbursement from Manager - R-3		3			–			–
Less: Reimbursement from Manager - R-4		2			–			–
Less: Reimbursement from Manager - R-5		6			–			–
Less: Reimbursement from Manager - R-6		20			N/A			20
Less: Reimbursement from Distributor - Class J		16			44			6
Total Net Expenses		15,541			4,133			12,656
Net Investment Income (Loss)		(6,208	)		11,961			7,269

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		40,978			79,846			69,021
Futures contracts		9,153			3,476			12,076
Change in unrealized appreciation/depreciation of:
Investments		(27,907	)		(28,477	)		(25,441	)
Futures contracts		(4,371	)		(520	)		(4,284	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		17,853			54,325			51,372
Net Increase (Decrease) in Net Assets Resulting from Operations	$	11,645		$	66,286		$	58,641


		Tax-Exempt
Amounts in thousands		Bond Fund
Net Investment Income (Loss)
Income:
Interest	$	15,386
Total Income		15,386
Expenses:
Management and investment advisory fees		1,547
Distribution fees - Class A		689
Distribution fees - Class C		244
Registration fees - Class A		55
Registration fees - Class C		20
Registration fees - Class P		63
Registration fees - Institutional		19
Shareholder reports - Class A		6
Shareholder reports - Class C		1
Shareholder reports - Class P		1
Transfer agent fees - Class A		136
Transfer agent fees - Class C		28
Transfer agent fees - Class P		32
Transfer agent fees - Institutional		1
Custodian fees		1
Directors' expenses		10
Interest expense and fees		87
Professional fees		30
Other expenses		7
Total Gross Expenses		2,977
Less: Reimbursement from Manager - Class C		16
Less: Reimbursement from Manager - Class P		69
Less: Reimbursement from Manager - Institutional		17
Total Net Expenses		2,875
Net Investment Income (Loss)		12,511

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		1,466
Change in unrealized appreciation/depreciation of:
Investments		(1,346	)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements		120
Net Increase (Decrease) in Net Assets Resulting from Operations	$	12,631


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				California Municipal Fund
																				Year Ended		Year Ended
																				October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																			$	11,267		$	8,590
Net realized gain (loss) on investments, foreign currency transactions, futures,
ptions and swaptions, short sales, and swap agreements																				468			123
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																				1,388			(856	)
					Net Increase (Decrease) in Net Assets Resulting from Operations															13,123			7,857

Dividends and Distributions to Shareholders
From net investment income																				(10,487	)		(8,905	)
																	Total Dividends and Distributions			(10,487	)		(8,905	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																				235,377			(2,082	)
													Total Increase (Decrease) in Net Assets							238,013			(3,130	)

Net Assets
Beginning of period																				224,437			227,567
End of period (including undistributed net investment income as set forth below)																			$	462,450		$	224,437
Undistributed (overdistributed) net investment income (loss)																			$	1,078		$	406

			Class A		Class B^(a)				Class C				Class P		Institutional
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	190,943			N/A		$		37,608		$		76,497		$		6,092
Reinvested			7,428		N/A				601				869				78
Redeemed			(68,144	)	N/A				(5,820	)			(10,298	)			(477	)
Net Increase (Decrease)	$	130,227			N/A		$		32,389		$		67,068		$		5,693
Shares:
Sold			17,722		N/A				3,487				7,147				563
Reinvested			692		N/A				56				81				7
Redeemed			(6,355	)	N/A				(540	)			(958	)			(44	)
Net Increase (Decrease)			12,059		N/A				3,003				6,270				526
Year Ended October 31, 2015^(b),(c)
Dollars:
Sold		$	52,002	$	–		$		7,057		$		6,986		$		140
Reinvested			7,479		2				376				22				1
Redeemed			(72,544	)	(392	)			(2,909	)			(302	)			–
Net Increase (Decrease)	$	(13,063		) $	(390			) $	4,524		$		6,706		$		141
Shares:
Sold			4,945		–				670				669				14
Reinvested			712		–				36				2				–
Redeemed			(6,901	)	(37	)			(276	)			(29	)			–
Net Increase (Decrease)			(1,244	)	(37	)			430				642				14

Distributions:
Year Ended October 31, 2016
From net investment income $			(8,273	)	N/A		$		(690			) $	(1,446			) $	(78	)
From net realized gain on
investments			–		N/A				–				–				–
Total Dividends and Distributions $			(8,273	)	N/A		$		(690			) $	(1,446			) $	(78	)
Year Ended October 31, 2015^(b),(c)
From net investment income $			(8,462	) $	(2			) $	(418			) $	(22			) $	(1	)
From net realized gain on
investments			–		–				–				–				–
Total Dividends and Distributions $			(8,462	) $	(2			) $	(418			) $	(22			) $	(1	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																													Core Plus Bond Fund
																											Year Ended						Year Ended
																											October 31, 2016						October 31, 2015
Operations
Net investment income (loss)																											$		105,079				$		107,330
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																															(7,706	)			1,227
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																															94,588				(64,994	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																									191,961						43,563

Dividends and Distributions to Shareholders
From net investment income																															(98,295	)			(110,080	)
															Total Dividends and Distributions																(98,295	)			(110,080	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																													(333,574			)			372,519
												Total Increase (Decrease) in Net Assets																	(239,908			)			306,002

Net Assets
Beginning of period																													4,255,561						3,949,559
End of period (including undistributed net investment income as set forth below)																											$		4,015,653				$		4,255,561
Undistributed (overdistributed) net investment income (loss)																											$				7,877		$		1,553

		Class A	Class B^(a)					Class C				Class J			Institutional				R-1				R-2				R-3				R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	11,039		N/A		$		3,533		$		11,985		$	342,475		$		1,247		$		2,296		$		5,056		$		5,569	$	11,176
Reinvested		1,865		N/A				88				3,273			90,391				93				185				536				438		1,239
Redeemed		(15,304	)	N/A				(1,614	)			(19,002	)		(749,462	)			(2,602	)			(3,323	)			(10,480	)			(8,485	)	(15,786	)
Net Increase (Decrease)	$	(2,400	)	N/A		$		2,007		$		(3,744)		$	(316,596)				$(1,262)			$	(842)			$	(4,888)			$	(2,478)	$	(3,371)
Shares:
Sold		1,011		N/A				325				1,091			31,555				114				213				467				503		1,024
Reinvested		171		N/A				8				298			8,286				9				17				49				39		114
Redeemed		(1,403	)	N/A				(148	)			(1,733	)		(68,806	)			(238	)			(306	)			(966	)			(771	)	(1,460	)
Net Increase (Decrease)		(221	)	N/A				185				(344	)		(28,965	)			(115	)			(76	)			(450	)			(229	)	(322	)
Year Ended October 31, 2015
Dollars:
Sold	$	10,738	$	10		$		1,535		$		11,326		$	1,379,269			$	1,227		$		2,432		$		5,568		$		6,341	$	12,311
Issued in acquisitions		–		–				–				–			44,389				2,471				3,127				9,416				6,309		17,134
Reinvested		2,126		6				83				3,559			101,264				100				219				604				564		1,342

Redeemed		(17,019	)	(1,221	)			(1,146	)			(21,163)			(1,159,262)				(1,880	)			(5,348	)			(11,782	)			(16,229	)	(15,901	)
Net Increase (Decrease)	$	(4,155	) $	(1,205)			$	472		$		(6,278)			$ 365,660		$		1,918		$		430		$		3,806		$		(3,015	) $	14,886
Shares:
Sold		982		1				141				1,030			126,125				111				226				514				572		1,134
Issued in acquisitions		–		–				–				–			4,050				226				288				864				569		1,571
Reinvested		194		1				7				323			9,264				9				20				56				51		123
Redeemed		(1,560	)	(111	)			(105	)			(1,928	)		(106,128	)			(172	)			(496	)			(1,086	)			(1,469	)	(1,464	)
Net Increase (Decrease)		(384	)	(109	)			43				(575	)		33,311				174				38				348				(277	)	1,364

Distributions:
Year Ended October 31, 2016
From net investment income $		(1,938	)	N/A		$		(97)			$	(3,289)			$ (90,480)		$		(93)			$	(185)			$	(536)			$	(438)	$	(1,239)
From net realized gain on
investments		–		N/A				–				–			–				–				–				–				–		–
Total Dividends and Distributions $		(1,938	)	N/A		$		(97)			$	(3,289)			$ (90,480)		$		(93)			$	(185)			$	(536)			$	(438	) $	(1,239	)
Year Ended October 31, 2015
From net investment income $		(2,211	) $	(8)			$	(90)			$	(3,577)			$ (101,362)			$	(100)			$	(219)			$	(604)			$	(565)	$	(1,344	)
From net realized gain on
investments		–		–				–				–			–				–				–				–				–		–
Total Dividends and Distributions $		(2,211	) $	(8)			$	(90)			$	(3,577)			$ (101,362) $				(100)			$	(219)			$	(604)			$	(565	) $	(1,344	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																										Diversified International Fund
																										Year Ended							Year Ended
																										October 31, 2016							October 31, 2015
Operations
Net investment income (loss)																										$		116,479					$			94,811
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												(115,605			)					(35,179	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														33,678				(228,050			)
					Net Increase (Decrease) in Net Assets Resulting from Operations																									34,552				(168,418			)

Dividends and Distributions to Shareholders
From net investment income																														(89,275	)					(78,901	)
																	Total Dividends and Distributions													(89,275	)					(78,901	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												1,868,951						910,515
														Total Increase (Decrease) in Net Assets														1,814,228						663,196

Net Assets
Beginning of period																												6,177,837						5,514,641
End of period (including undistributed net investment income as set forth below)																										$		7,992,065					$	6,177,837
Undistributed (overdistributed) net investment income (loss)																										$		101,779					$			73,133
			Class A	Class B^(a)					Class C					Class J			Class P			Institutional				R-1		R-2				R-3			R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold		$	12,733		N/A		$		2,426			$		8,405	$		4,311		$	2,299,596			$	522	$	1,194		$		3,556	$		9,571	$		8,016
Reinvested			2,018		N/A				47					1,951			47			83,349				28		39				314			379			816
Redeemed			(30,590	)	N/A				(3,062	)				(23,446	)		(1,714	)		(469,230	)			(1,169	)	(2,279	)			(12,996	)		(9,393		)	(16,488	)
Net Increase (Decrease)	$	(15,839		)	N/A		$		(589)				$	(13,090)		$	2,644		$	1,913,715			$	(619	) $	(1,046			) $	(9,126)	$		557	$		(7,656	)
Shares:
Sold			1,154		N/A				218					764			385			208,402				47		110				322			848			721
Reinvested			179		N/A				4					175			4			7,429				3		3				28			33			72
Redeemed			(2,750	)	N/A				(275	)				(2,137	)		(155	)		(41,998	)			(107	)	(205	)			(1,177	)		(831		)	(1,469	)
Net Increase (Decrease)			(1,417	)	N/A				(53	)				(1,198	)		234			173,833				(57	)	(92	)			(827	)		50			(676	)
Year Ended October 31, 2015
Dollars:
Sold		$	25,724	$	38		$		4,203			$		16,153	$		1,856		$	1,952,349			$	823	$	980		$		5,876	$		10,398	$		12,811
Reinvested			2,335		–				30					2,193			58			71,970				34		71				445			450			974

Redeemed			(32,336	)	(3,857	)			(2,408	)				(30,601	)		(2,235)			(1,070,417)				(1,369	)	(3,663	)			(18,052	)		(14,028		)	(20,290	)
Net Increase (Decrease)		$	(4,277	) $	(3,819)			$	1,825		$	(12,255			) $		(321)			$ 953,902		$		(512	) $	(2,612)				$ (11,731)		$	(3,180)		$	(6,505	)
Shares:
Sold			2,160		3				349					1,365			158			163,868				69		83				500			854			1,084
Reinvested			202		–				3					192			5			6,258				3		6				38			39			84
Redeemed			(2,733	)	(318	)			(205	)				(2,620	)		(192	)		(92,279	)			(117	)	(313	)			(1,542	)		(1,198)			(1,728	)
Net Increase (Decrease)			(371	)	(315	)			147					(1,063	)		(29	)		77,847				(45	)	(224	)			(1,004	)		(305)			(560	)

Distributions:
Year Ended October 31, 2016
From net investment income $			(2,269	)	N/A		$		(49				) $	(1,953	) $		(51) $			(83,377	)	$		(28	) $	(39			) $	(314)	$		(379)		$	(816	)
From net realized gain on
investments			–		N/A				–					–			–			–				–		–				–			–			–
Total Dividends and Distributions $			(2,269	)	N/A		$		(49				) $	(1,953	) $		(51) $			(83,377	)	$		(28	) $	(39			) $	(314	) $		(379)		$	(816	)
Year Ended October 31, 2015
From net investment income $			(2,626	) $	–		$		(31				) $	(2,194	) $		(72) $			(72,004	)	$		(34	) $	(71			) $	(445)	$		(450)		$	(974	)
From net realized gain on
investments			–		–				–					–			–			–				–		–				–			–			–
Total Dividends and Distributions $			(2,626	) $	–		$		(31				) $	(2,194	) $		(72) $			(72,004	)	$		(34	) $	(71			) $	(445)	$		(450)		$	(974	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											Equity Income Fund
																									Year Ended									Year Ended
																									October 31, 2016									October 31, 2015
Operations
Net investment income (loss)																									$		129,181							$		133,516
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																											105,404									335,261
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														68,386						(444,655	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																							302,971									24,122

Dividends and Distributions to Shareholders
From net investment income																											(123,057				)					(126,046	)
																Total Dividends and Distributions											(123,057				)					(126,046	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																											(268,290				)					(403,730	)
													Total Increase (Decrease) in Net Assets																	(88,376	)					(505,654	)

Net Assets
Beginning of period																											5,478,309									5,983,963
End of period (including undistributed net investment income as set forth below)																									$		5,389,933							$		5,478,309
Undistributed (overdistributed) net investment income (loss)																									$					35,010				$		32,422
		Class A	Class B^(a)					Class C					Class P			Institutional			R-1				R-2		R-3					R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	64,550		N/A			$		17,234		$		35,733		$	364,484		$	336		$		1,390	$	5,757		$			5,178		$		16,901
Reinvested		17,574		N/A					2,112				2,620			94,543			33				59		1,144					1,054				2,462
Redeemed		(161,129	)	N/A					(33,315	)			(36,465	)		(542,788	)		(1,608	)			(2,225	)	(18,817	)				(17,903	)			(87,204	)
Net Increase (Decrease)	$	(79,005	)	N/A		$			(13,969)			$	1,888		$	(83,761	)	$	(1,239)			$	(776)		(11,916)				$	$ (11,671)			$	(67,841)
Shares:
Sold		2,493		N/A					679				1,377			14,233			13				54		223					202				652
Reinvested		675		N/A					83				100			3,625			1				2		44					41				95
Redeemed		(6,274	)	N/A					(1,322	)			(1,414	)		(20,924	)		(64	)			(85	)	(729	)				(690	)			(3,438	)
Net Increase (Decrease)		(3,106	)	N/A					(560	)			63			(3,066	)		(50	)			(29	)	(462	)				(447	)			(2,691	)
Year Ended October 31, 2015
Dollars:
Sold	$	111,135	$	96			$		28,651		$		32,398		$	626,047		$	813		$		1,394	$	7,204		$			14,540		$		19,274
Reinvested		18,390		77					2,082				2,530			95,201			49				74		1,277					1,131				3,480

Redeemed		(160,016	)	(32,731	)				(28,889	)			(37,090)			(1,051,885)			(760	)			(2,832	)	(19,916	)				(12,386	)			(23,068	)
Net Increase (Decrease)	$	(30,491)	$	(32,558)		$			1,844		$		(2,162) $			(330,637)		$	102		$		(1,364)	$	(11,435)				$	3,285		$		(314	)
Shares:
Sold		4,171		3					1,108				1,225			23,485			31				53		273					549				732
Reinvested		709		3					82				98			3,667			2				3		49					44				134
Redeemed		(6,082	)	(1,213	)				(1,122	)			(1,413	)		(39,814	)		(29	)			(108	)	(754	)				(474	)			(866	)
Net Increase (Decrease)		(1,202	)	(1,207	)				68				(90	)		(12,662	)		4				(52	)	(432	)				119				–

Distributions:
Year Ended October 31, 2016
From net investment income		$ (18,285)		N/A			$		(2,450)			$	(2,954)			$ (94,586)		$	(33)			$	(89	) $	(1,144			) $		(1,054			) $	(2,462	)
From net realized gain on
investments		–		N/A					–				–			–			–				–		–					–				–
Total Dividends and Distributions		$ (18,285)		N/A			$		(2,450)			$	(2,954)			$ (94,586)		$	(33)			$	(89	) $	(1,144			) $		(1,054			) $	(2,462	)
Year Ended October 31, 2015
From net investment income		$ (19,095) $		(78)				$	(2,458)			$	(2,943)			$ (95,434)		$	(49)			$	(101	) $	(1,277			) $		(1,131			) $	(3,480	)
From net realized gain on
investments		–		–					–				–			–			–				–		–					–				–
Total Dividends and Distributions		$ (19,095) $		(78)				$	(2,458)			$	(2,943)			$ (95,434)		$	(49)			$	(101)	$	(1,277			) $		(1,131			) $	(3,480	)


						STATEMENT OF CHANGES IN NET ASSETS
						PRINCIPAL FUNDS, INC.


							Finisterre Unconstrained Emerging Markets Bond Fund



Amounts in thousands
									Period Ended
									October 31, 2016^(a)
Operations
Net investment income (loss)								$	354
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements									255
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies									63
				Net Increase (Decrease) in Net Assets Resulting from Operations					672

Dividends and Distributions to Shareholders
From net investment income									(288	)
						Total Dividends and Distributions			(288	)

Capital Share Transactions
Net increase (decrease) in capital share transactions									25,000
						Total Increase (Decrease) in Net Assets			25,384

Net Assets
Beginning of period									–
End of period (including undistributed net investment income as set forth below)								$	25,384
Undistributed (overdistributed) net investment income (loss)								$	83
		Class A		Class P		Institutional
Capital Share Transactions:
Period Ended October 31, 2016^(a)
Dollars:
Sold	$	150	$	100	$	24,801
Redeemed		(51	)	–		–
Net Increase (Decrease)	$	99	$	100	$	24,801
Shares:
Sold		15		10		2,480
Redeemed		(5	)	–		–
Net Increase (Decrease)		10		10		2,480

Distributions:
Period Ended October 31, 2016^(a)
From net investment income $		(2	) $	(1	) $	(285	)
From net realized gain on
investments		–		–		–
Total Dividends and Distributions $		(2	) $	(1	) $	(285	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands									Global Diversified Income Fund
									Year Ended			Year Ended
									October 31, 2016			October 31, 2015
Operations
Net investment income (loss)								$	563,535		$	510,947
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements									(243,679	)		(84,228	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies									327,343			(618,635	)
				Net Increase (Decrease) in Net Assets Resulting from Operations					647,199			(191,916	)

Dividends and Distributions to Shareholders
From net investment income									(573,868	)		(472,424	)
From net realized gain on investments									–			(239,376	)
						Total Dividends and Distributions			(573,868	)		(711,800	)

Capital Share Transactions
Net increase (decrease) in capital share transactions									(253,824	)		2,331,799
						Total Increase (Decrease) in Net Assets			(180,493	)		1,428,083

Net Assets
Beginning of period									11,375,317			9,947,234
End of period (including undistributed net investment income as set forth below)								$	11,194,824		$	11,375,317
Undistributed (overdistributed) net investment income (loss)								$	60,394		$	119,525
		Class A		Class C	Class P	Institutional
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	435,151		$ 243,285	$ 866,178	$867,710
Reinvested		97,926		88,361	109,479	195,931

Redeemed		(808,425	)	(606,946)	(1,134,199)	(608,275	)
Net Increase (Decrease)	$	(275,348)		$ (275,300)	$ (158,542)	$ 455,366
Shares:
Sold		32,523		18,269	65,064	65,050
Reinvested		7,354		6,678	8,256	14,750
Redeemed		(60,917	)	(45,832)	(86,284)	(45,946	)
Net Increase (Decrease)		(21,040	)	(20,885)	(12,964)	33,854
Year Ended October 31, 2015
Dollars:
Sold	$	649,916		$ 490,528 $	1,206,340	$ 2,634,540
Reinvested		143,314		126,149	145,684	170,167

Redeemed		(702,951	)	(476,761)	(1,459,577)	(595,550	)
Net Increase (Decrease)	$	90,279		$ 139,916 $	(107,553)	$ 2,209,157
Shares:
Sold		45,982		34,888	85,866	185,335
Reinvested		10,256		9,079	10,476	12,249
Redeemed		(50,147	)	(34,227)	(103,197)	(42,617	)
Net Increase (Decrease)		6,091		9,740	(6,855)	154,967

Distributions:
Year Ended October 31, 2016
From net investment income		$ (111,872)		$ (113,977) $	(150,675)	$ (197,344)
From net realized gain on
investments		–		–	–	–
Total Dividends and Distributions		$ (111,872)		$ (113,977)	$ (150,675)	$ (197,344)
Year Ended October 31, 2015
From net investment income		$ (106,393)		$ (99,212)	$ (139,160)	$ (127,659)
From net realized gain on
investments		(58,492	)	(66,073)	(69,782)	(45,029	)
Total Dividends and Distributions		$ (164,885)		$ (165,285)$	(208,942)	$ (172,688)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																							Global Real Estate Securities Fund
																							Year Ended					Year Ended
																							October 31, 2016					October 31, 2015
Operations
Net investment income (loss)																							$		50,242		$	40,948
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									46,936			98,185
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									(99,257	)		(38,049	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																			(2,079	)		101,084

Dividends and Distributions to Shareholders
From net investment income																									(75,842	)		(73,436	)
From net realized gain on investments																									(52,959	)		(14,594	)
																	Total Dividends and Distributions								(128,801	)		(88,030	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																									283,670			606,405
														Total Increase (Decrease) in Net Assets											152,790			619,459

Net Assets
Beginning of period																									2,954,677			2,335,218
End of period (including undistributed net investment income as set forth below)																							$		3,107,467		$	2,954,677
Undistributed (overdistributed) net investment income (loss)																							$		2,338		$	(8,869	)

		Class A				Class C					Class P			Institutional			R-3		R-4		R-5		R-6
Capital Share Transactions:
Year Ended October 31, 2016^(a)
Dollars:
Sold	$	87,494		$		11,232		$	159,900				$	627,437		$	22	$	21	$	10	$	2,973
Reinvested		5,789				1,860					8,004			102,063			–		–		–		18
Redeemed		(67,743	)			(19,167	)				(113,224	)		(521,060	)		–		–		–		(1,959	)
Net Increase (Decrease)	$	25,540		$		(6,075)				$	54,680		$	208,440		$	22	$	21	$	10	$	1,032
Shares:
Sold		10,293				1,357					17,661			69,239			2		2		1		323
Reinvested		681				227					882			11,239			–		–		–		2
Redeemed		(7,997	)			(2,322	)				(12,658	)		(57,429	)		–		–		–		(205	)
Net Increase (Decrease)		2,977				(738	)				5,885			23,049			2		2		1		120
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	97,992		$		23,206		$	183,916				$	956,233			N/A		N/A		N/A	$	41
Reinvested		3,317				1,311					3,380			73,723			N/A		N/A		N/A		–
Redeemed		(56,691	)			(11,857	)				(70,200	)		(597,964	)		N/A		N/A		N/A		(2	)
Net Increase (Decrease)	$	44,618		$		12,660		$	117,096				$	431,992			N/A		N/A		N/A	$	39
Shares:
Sold		11,199				2,700					19,853			102,278			N/A		N/A		N/A		4
Reinvested		379				153					364			7,926			N/A		N/A		N/A		–
Redeemed		(6,524	)			(1,397	)				(7,682	)		(63,765	)		N/A		N/A		N/A		–
Net Increase (Decrease)		5,054				1,456					12,535			46,439			N/A		N/A		N/A		4

Distributions:
Year Ended October 31, 2016^(a)
From net investment income $		(3,694			) $	(880				) $	(5,860)			$ (65,393)		$	–	$	–	$	–	$	(15	)
From net realized gain on
investments		(2,833	)			(1,095	)				(4,045	)		(44,983	)		–		–		–		(3	)
Total Dividends and Distributions $		(6,527			) $	(1,975				) $	(9,905)			$ (110,376) $			– $		–	$	–	$	(18	)
Year Ended October 31, 2015^(b)
From net investment income $		(2,966			) $	(1,074				) $	(3,465)			$ (65,931)			N/A		N/A		N/A	$	–
From net realized gain on
investments		(655	)			(311	)				(657	)		(12,971	)		N/A		N/A		N/A		–
Total Dividends and Distributions $		(3,621			) $	(1,385				) $	(4,122)			$ (78,902)			N/A		N/A		N/A	$	–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



																													Government & High Quality Bond Fund
Amounts in thousands																													Government & High Quality Bond Fund
																											Year Ended								Year Ended
																											October 31, 2016								October 31, 2015
Operations
Net investment income (loss)																											$				46,943				$			36,947
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																															(2,924	)						8,348
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																															990							(15,228	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																										45,009							30,067

Dividends and Distributions to Shareholders
From net investment income																															(57,224	)						(44,238	)
																	Total Dividends and Distributions														(57,224	)						(44,238	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																															5,946					(101,028			)
													Total Increase (Decrease) in Net Assets																		(6,269	)				(115,199			)

Net Assets
Beginning of period																													1,549,483							1,664,682
End of period (including undistributed net investment income as set forth below)																											$		1,543,214						$	1,549,483
Undistributed (overdistributed) net investment income (loss)																											$				(4,544	)			$			(2,451	)
			Class A		Class B^(a)				Class C				Class J				Class P			Institutional			R-1				R-2				R-3				R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold		$	78,462		N/A		$		21,436		$		27,852		$		36,454		$	113,387		$	1,468		$		11,094		$		6,094		$		8,372	$		8,236
Reinvested			10,543		N/A				1,539				4,838				622			36,595			80				132				528				425			865
Redeemed			(65,516	)	N/A				(14,380	)			(25,223	)			(10,760	)		(221,562	)		(1,365	)			(3,996	)			(8,746	)			(4,398		)	(7,130	)
Net Increase (Decrease)		$	23,489		N/A		$		8,595		$		7,467		$		26,316		$	(71,580	)	$	183		$		7,230		$		(2,124			) $	4,399	$		1,971
Shares:
Sold			7,191		N/A				1,967				2,549				3,328			10,384			135				1,016				558				766			754
Reinvested			967		N/A				141				443				57			3,355			7				12				48				39			79
Redeemed			(6,009	)	N/A				(1,320	)			(2,308	)			(983	)		(20,291	)		(125	)			(366	)			(801	)			(403		)	(653	)
Net Increase (Decrease)			2,149		N/A				788				684				2,402			(6,552	)		17				662				(195	)			402			180
Year Ended October 31, 2015
Dollars:
Sold		$	35,344	$	10		$		8,308		$		19,937		$		3,854		$	118,536		$	508		$		3,705		$		5,617		$		5,386	$		8,197
Reinvested			7,794		15				1,022				3,495				195			29,723			59				105				414				294			618
Redeemed			(65,788	)	(3,957	)			(13,978	)			(24,557	)			(3,060	)		(224,217	)		(318	)			(1,174	)			(4,986	)			(6,083)			(6,046	)
Net Increase (Decrease)	$	(22,650)		$	(3,932)			$	(4,648)			$	(1,125)			$	989		$	(75,958	)	$	249		$		2,636		$		1,045		$		(403)		$	2,769
Shares:
Sold			3,205		1				754				1,807				348			10,702			46				337				509				487			743
Reinvested			707		1				93				316				17			2,694			5				9				37				27			56
Redeemed			(5,962	)	(358	)			(1,268	)			(2,223	)			(277	)		(20,284	)		(29	)			(106	)			(451	)			(552		)	(547	)
Net Increase (Decrease)			(2,050	)	(356	)			(421	)			(100	)			88			(6,888	)		22				240				95				(38		)	252

Distributions:
Year Ended October 31, 2016
From net investment income			$ (11,048)		N/A		$		(1,607)			$	(4,889)			$	(713)			$ (36,708)		$	(80)			$	(359)			$	(530)			$	(425)		$	(865	)
From net realized gain on
investments			–		N/A				–				–				–			–			–				–				–				–			–
Total Dividends and Distributions			$ (11,048)		N/A		$		(1,607)			$	(4,889)			$	(713)			$ (36,708)		$	(80)			$	(359)			$	(530)			$	(425)		$	(865	)
Year Ended October 31, 2015
From net investment income $			(8,165)	$	(19			) $	(1,066)			$	(3,531)			$	(225)			$ (29,723)		$	(59)			$	(122)			$	(415)			$	(294)		$	(619	)
From net realized gain on
investments			–		–				–				–				–			–			–				–				–				–			–
Total Dividends and Distributions $			(8,165)	$	(19			) $	(1,066)			$	(3,531)			$	(225)			$ (29,723)		$	(59)			$	(122)			$	(415)			$	(294)		$	(619	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																	High Yield Fund
																	Year Ended		Year Ended
																	October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																$	196,101		$	201,798
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																	(111,809	)		(4,725	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																	156,441			(230,302	)
				Net Increase (Decrease) in Net Assets Resulting from Operations													240,733			(33,229	)

Dividends and Distributions to Shareholders
From net investment income																	(211,316	)		(204,785	)
From net realized gain on investments																	–			(40,031	)
														Total Dividends and Distributions			(211,316	)		(244,816	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																	(103,149	)		149,831
									Total Increase (Decrease) in Net Assets								(73,732	)		(128,214	)

Net Assets
Beginning of period																	3,634,292			3,762,506
End of period (including undistributed net investment income as set forth below)																$	3,560,560		$	3,634,292
Undistributed (overdistributed) net investment income (loss)																$	(9,672	)	$	(1,435	)

		Class A	Class B^(a)				Class C		Class P			Institutional
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	354,952		N/A		$	43,246		$ 234,947		$	656,315
Reinvested		50,721		N/A			17,483		28,450					99,024
Redeemed		(515,676	)	N/A			(96,265	)	(276,258				)	(700,088	)
Net Increase (Decrease)	$	(110,003	)	N/A		$	(35,536)	$	(12,861)		$			55,251
Shares:
Sold		51,005		N/A			6,185		34,084					95,034
Reinvested		7,284		N/A			2,492		4,085					14,315
Redeemed		(74,447	)	N/A			(13,802	)	(40,020	)				(101,564	)
Net Increase (Decrease)		(16,158	)	N/A			(5,125	)	(1,851	)				7,785
Year Ended October 31, 2015
Dollars:
Sold	$	794,562	$	109		$	43,242		$ 207,586		$	1,395,785
Reinvested		70,817		478			22,572		43,047					87,903
Redeemed		(928,674	)	(24,509	)		(119,173	)	(709,207)					(734,707	)
Net Increase (Decrease)	$	(63,295)		$ (23,922)			$ (53,359)		$ (458,574)					$ 748,981
Shares:
Sold		106,410		15			5,777		28,034					188,570
Reinvested		9,593		64			3,035		5,819					12,022
Redeemed		(125,461	)	(3,248	)		(15,949	)	(94,601	)				(99,496	)
Net Increase (Decrease)		(9,458	)	(3,169	)		(7,137	)	(60,748	)				101,096

Distributions:
Year Ended October 31, 2016
From net investment income		$ (55,202)		N/A		$	(20,390)		$ (32,715)					$ (103,009)
From net realized gain on
investments		–		N/A			–		–					–
Total Dividends and Distributions		$ (55,202)		N/A		$	(20,390)		$ (32,715)					$ (103,009)
Year Ended October 31, 2015
From net investment income		$ (62,808) $		(356)			$ (21,448)		$ (40,699)					$ (79,474)
From net realized gain on
investments		(13,383	)	(243	)		(5,198	)	(8,484	)				(12,723	)
Total Dividends and Distributions		$ (76,191) $		(599)			$ (26,646)		$ (49,183)					$ (92,197)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands						High Yield Fund I
						Year Ended		Year Ended
						October 31, 2016		October 31, 2015
Operations
Net investment income (loss)					$	50,930		$	68,838
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements						(35,774	)		(19,909	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies						53,607			(60,818	)
			Net Increase (Decrease) in Net Assets Resulting from Operations			68,763			(11,889	)

Dividends and Distributions to Shareholders
From net investment income						(51,590	)		(69,085	)
From net realized gain on investments						–			(13,688	)
			Total Dividends and Distributions			(51,590	)		(82,773	)

Capital Share Transactions
Net increase (decrease) in capital share transactions						70,813			(821,406	)
			Total Increase (Decrease) in Net Assets			87,986			(916,068	)

Net Assets
Beginning of period						876,363			1,792,431
End of period (including undistributed net investment income as set forth below)					$	964,349		$	876,363
Undistributed (overdistributed) net investment income (loss)					$	(296	)	$	444
			Class A	Institutional
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold		$	2,813	$ 202,432
Reinvested			226	50,819
Redeemed			(1,685)	(183,792)
Net Increase (Decrease)		$	1,354	$ 69,459
Shares:
Sold			296	21,498
Reinvested			24	5,377
Redeemed			(180)	(19,516)
Net Increase (Decrease)			140	7,359
Year Ended October 31, 2015
Dollars:
Sold	$	112,883		$ 342,290
Reinvested			1,777	78,410

Redeemed			(109,862))	(1,246,904
Net Increase (Decrease)		$	4,798	$ (826,204)
Shares:
Sold			10,953	33,655
Reinvested			175	7,788
Redeemed			(10,968)	(121,595)
Net Increase (Decrease)			160	(80,152)

Distributions:
Year Ended October 31, 2016
From net investment income$			(228)	$ (51,362)
From net realized gain on
investments			–	–
Total Dividends and Distributions$			(228)	$ (51,362)
Year Ended October 31, 2015
From net investment income$			(1,608)	$ (67,477)
From net realized gain on
investments			(174)	(13,514)
Total Dividends and Distributions$			(1,782)	$ (80,991)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																			Income Fund
																	Year Ended					Year Ended
															October 31, 2016						October 31, 2015
Operations
Net investment income (loss)															$		98,909				$	95,348
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																	(19,217			)		18,125
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																	87,917					(102,832			)
				Net Increase (Decrease) in Net Assets Resulting from Operations													167,609					10,641

Dividends and Distributions to Shareholders
From net investment income																	(115,229			)		(100,635			)
										Total Dividends and Distributions							(115,229			)		(100,635			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																	96,876					393,642
										Total Increase (Decrease) in Net Assets							149,256					303,648

Net Assets
Beginning of period																	3,147,643					2,843,995
End of period (including undistributed net investment income as set forth below)															$		3,296,899				$	3,147,643
Undistributed (overdistributed) net investment income (loss)															$		(15,308			)	$			(7,102	)
		Class A		Class B^(a)		Class C		Class J		Class P	Institutional		R-1		R-2		R-3		R-4		R-5			R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	51,139		N/A $		14,902	$	23,515	$	19,473	$ 261,710	$	4,290	$	888	$	6,233	$	8,578	$	13,025		$	799
Reinvested		8,360		N/A		1,514		3,179		635	96,385		476		78		1,004		844		1,659			234
Redeemed		(55,569	)	N/A		(15,273	)	(19,938	)	(17,240)	(284,632)		(1,531	)	(740	)	(8,584	)	(5,938	)	(11,592		)	(1,007	)
Net Increase (Decrease)	$	3,930		N/A $		1,143	$	6,756	$	2,868	$ 73,463	$	3,235	$	226	$	(1,347	)$	3,484	$	3,092		$	26
Shares:
Sold		5,371		N/A		1,561		2,459		2,066	27,451		448		94		653		900		1,372			83
Reinvested		880		N/A		159		334		67	10,121		50		8		105		89			174		25
Redeemed		(5,857	)	N/A		(1,600	)	(2,096	)	(1,801)	(29,932)		(161	)	(77	)	(901	)	(620	)	(1,229		)	(107	)
Net Increase (Decrease)		394		N/A		120		697		332	7,640		337		25		(143	)	369			317		1
Year Ended October 31, 2015
Dollars:
Sold	$	55,391	$	29	$	13,872	$	22,258	$	22,138	$ 464,692	$	7,081	$	822	$	13,091	$	9,645	$	22,562		$	7,623
Reinvested		7,728		29		1,355		2,790		548	84,029		339		59		878		741		1,385			92
Redeemed		(63,070	)	(6,253	)	(14,004	)	(23,465	)	(26,451)	(188,039)		(1,563	)	(200	)	(4,414	)	(7,715	)	(9,365		)	(996	)
Net Increase (Decrease)	$	49	$	(6,195	)$	1,223	$	1,583	$	(3,765)$	360,682	$	5,857	$	681	$	9,555	$	2,671	$	14,582		$	6,719
Shares:
Sold		5,722		3		1,424		2,292		2,276	47,832		729		83		1,342		990		2,314			782
Reinvested		799		3		139		288		57	8,669		35		6		90		76			143		10
Redeemed		(6,518	)	(639	)	(1,442	)	(2,423	)	(2,727)	(19,456)		(162	)	(20	)	(456	)	(798	)		(971	)	(104	)
Net Increase (Decrease)		3		(633	)	121		157		(394)	37,045		602		69		976		268		1,486			688

Distributions:
Year Ended October 31, 2016
From net investment
income	$	(8,776	)	N/A $		(1,624	)$	(3,221)	$	(902)$	(96,397)	$	(476	)$	(92)	$	(1,004)	$	(844)	$	(1,659)		$	(234	)
From net realized gain on
investments		–		N/A		–		–		– –			–		–		–		–			–		–
Total Dividends and
Distributions	$	(8,776	)	N/A $		(1,624	)$	(3,221)	$	(902)$	(96,397)	$	(476	)$	(92)	$	(1,004)	$	(844	)$	(1,659)		$	(234	)
Year Ended October 31, 2015
From net investment
income	$	(8,088)	$	(38)	$	(1,446	)$	(2,825)	$	(695)$	(84,036)	$	(339	)$	(70)	$	(878)	$	(741)	$	(1,387)		$	(92	)
From net realized gain on
investments		–		–		–		–		–	–		–		–		–		–			–		–
Total Dividends and
Distributions	$	(8,088)	$	(38)	$	(1,446	)$	(2,825)	$	(695)$	(84,036)	$	(339	)$	(70)	$	(878)	$	(741	)$	(1,387)		$	(92	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																			Inflation Protection Fund
																			Year Ended						Year Ended
																			October 31, 2016						October 31, 2015
Operations
Net investment income (loss)																			$				14,820		$	5,708
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																							(18,748	)		(6,628	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																							91,749			(35,813	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																			87,821			(36,733	)

Dividends and Distributions to Shareholders
From net investment income																							(13,459	)		(17,061	)
									Total Dividends and Distributions														(13,459	)		(17,061	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							89,328			634,119
						Total Increase (Decrease) in Net Assets															163,690					580,325

Net Assets
Beginning of period																					1,645,325					1,065,000
End of period (including undistributed net investment income as set forth below)																			$		1,809,015				$	1,645,325
Undistributed (overdistributed) net investment income (loss)																			$				6,053		$	11,980

		Class A		Class C		Class J	Institutional		R-1				R-2		R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	2,568	$	668	$	1,845	$ 264,577	$	440		$		227	$	1,445		$		981		$		1,152
Reinvested		86		18		48	13,197		4				4		34				16				33
Redeemed		(2,743	)	(795	)	(1,937)	(188,740)		(148	)			(258	)	(894	)			(707	)			(1,793	)
Net Increase (Decrease)	$	(89	) $	(109	) $	(44) $	89,034	$	296		$		(27	) $	585		$		290		$		(608	)
Shares:
Sold		303		83		223	31,189		54				28		174				119				138
Reinvested		11		2		6	1,607		–				–		5				2				4
Redeemed		(328	)	(99	)	(235)	(22,322)		(18	)			(31	)	(109	)			(86	)			(212	)
Net Increase (Decrease)		(14	)	(14	)	(6)	10,474		36				(3	)	70				35				(70	)
Year Ended October 31, 2015
Dollars:
Sold	$	11,423	$	792	$	1,880	$ 814,849	$	176		$		232	$	1,508		$		1,147		$		2,719
Reinvested		175		39		101	16,564		8				7		73				25				52
Redeemed		(12,684	)	(1,039	)	(2,821)	(194,867)		(367	)			(260	)	(2,326	)			(1,149	)			(2,138	)
Net Increase (Decrease)	$	(1,086	) $	(208)	$	(840)	$ 636,546	$	(183			) $	(21	) $	(745)			$	23		$		633
Shares:
Sold		1,339		97		227	95,267		22				28		181				137				324
Reinvested		21		5		12	1,962		1				1		9				3				6
Redeemed		(1,507	)	(127	)	(339)	(22,883)		(44	)			(32	)	(280	)			(137	)			(256	)
Net Increase (Decrease)		(147	)	(25	)	(100)	74,346		(21	)			(3	)	(90	)			3				74

Distributions:
Year Ended October 31, 2016
From net investment income $		(93	) $	(20)	$	(48) $	(13,207)	$	(4			) $	(4	) $	(34)			$	(16)			$	(33	)
From net realized gain on
investments		–		–		–	–		–				–		–				–				–
Total Dividends and Distributions $		(93	) $	(20)	$	(48) $	(13,207)	$	(4			) $	(4	) $	(34)			$	(16)			$	(33	)
Year Ended October 31, 2015
From net investment income $		(186	) $	(45)	$	(101)	$ (16,564)	$	(8			) $	(7	) $	(73)			$	(25)			$	(52	)
From net realized gain on
investments		–		–		–	–		–				–		–				–				–
Total Dividends and Distributions $		(186	) $	(45)	$	(101)	$ (16,564)	$	(8			) $	(7	) $	(73)			$	(25)			$	(52	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																										International Emerging Markets Fund
																										Year Ended						Year Ended
																										October 31, 2016						October 31, 2015
Operations
Net investment income (loss)																										$				9,153		$			16,334
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												(110,712			)				(35,751	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																												157,938					(162,669			)
				Net Increase (Decrease) in Net Assets Resulting from Operations																										56,379			(182,086			)

Dividends and Distributions to Shareholders
From net investment income																														(9,038	)				(31,011	)
															Total Dividends and Distributions															(9,038	)				(31,011	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												(248,074			)		(659,956			)
													Total Increase (Decrease) in Net Assets															(200,733			)		(873,053			)

Net Assets
Beginning of period																												1,186,303					2,059,356
End of period (including undistributed net investment income as set forth below)																										$		985,570				$	1,186,303
Undistributed (overdistributed) net investment income (loss)																										$				7,931		$			6,805

		Class A		Class B^(a)				Class C					Class J		Class P					Institutional				R-1		R-2				R-3		R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	6,259		N/A		$		1,270			$		7,233	$	777		$	170,269				$		519	$	1,045		$		2,405	$	2,142	$		4,496
Reinvested		234		N/A				–					408		7					8,193				–		–				24		30			128
Redeemed		(12,316	)	N/A				(1,914	)				(15,174	)	(643	)		(404,982			)			(905	)	(1,680	)			(3,610	)	(3,237)			(9,052	)
Net Increase (Decrease)	$	(5,823	)	N/A		$		(644)				$	(7,533	) $	141		$	(226,520)					$	(386)	$	(635)			$	(1,181)	$	(1,065)		$	(4,428	)
Shares:
Sold		298		N/A				65					357		38					8,563				24		52				119		103			220
Reinvested		12		N/A				–					21		–					408				–		–				1		2			6
Redeemed		(600	)	N/A				(97	)				(760	)	(31	)				(20,119	)			(44	)	(82	)			(175	)	(157		)	(452	)
Net Increase (Decrease)		(290	)	N/A				(32	)				(382	)	7					(11,148	)			(20	)	(30	)			(55	)	(52		)	(226	)
Year Ended October 31, 2015
Dollars:
Sold	$	13,865	$	12		$		1,895			$		11,746	$	1,151		$	364,971				$		649	$	1,075		$		3,185	$	3,815	$		7,657
Reinvested		983		–				25					1,604		24					27,544				25		48				140		180			400

Redeemed		(15,343	)	(3,363	)			(1,809	)				(24,716	)	(1,654)					(1,026,519)				(819	)	(2,539	)			(5,339	)	(7,542		)	(11,307	)
Net Increase (Decrease)	$	(495)	$	(3,351			) $	111		$	(11,366			) $	(479)					$ (634,004)		$		(145)	$	(1,416)			$	(2,014)	$	(3,547)		$	(3,250	)
Shares:
Sold		580		1				83					508		48					15,618				28		46				135		161			333
Reinvested		42		–				1					71		1					1,186				1		2				6		8			17
Redeemed		(655	)	(148	)			(80	)				(1,093	)	(70	)				(42,594	)			(36	)	(108	)			(230	)	(329		)	(485	)
Net Increase (Decrease)		(33	)	(147	)			4					(514	)	(21	)				(25,790	)			(7	)	(60	)			(89	)	(160		)	(135	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(237	)	N/A $				– $					(409	) $	(8)				$	(8,202	)	$		– $		–		$		(24)	$	(30)		$	(128	)
From net realized gain on
investments		–		N/A				–					–		–					–				–		–				–		–			–
Total Dividends and Distributions $		(237	)	N/A $				– $					(409	) $	(8)				$	(8,202	)	$		– $		– $				(24)	$	(30)		$	(128	)
Year Ended October 31, 2015
From net investment income $		(1,001)	$	–		$		(26)				$	(1,605)	$	(26) $					(27,560)		$		(25)	$	(48)			$	(140)	$	(180)		$	(400	)
From net realized gain on
investments		–		–				–					–		–					–				–		–				–		–			–
Total Dividends and Distributions $		(1,001)	$	–		$		(26)				$	(1,605)	$	(26) $					(27,560)		$		(25)	$	(48)			$	(140)	$	(180)		$	(400	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																					International Fund I
																			Year Ended				Year Ended
																			October 31, 2016				October 31, 2015
Operations
Net investment income (loss)																			$		3,855		$	4,025
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																					(17,930	)		(21,253	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																					5,290			20,621
				Net Increase (Decrease) in Net Assets Resulting from Operations																	(8,785	)		3,393

Dividends and Distributions to Shareholders
From net investment income																					(2,980	)		(7,847	)
											Total Dividends and Distributions										(2,980	)		(7,847	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																					19,450			12,759
									Total Increase (Decrease) in Net Assets												7,685			8,305

Net Assets
Beginning of period																					380,851			372,546
End of period (including undistributed net investment income as set forth below)																			$		388,536		$	380,851
Undistributed (overdistributed) net investment income (loss)																			$		3,591		$	2,799

		Class A		Class P		Institutional			R- 1		R-2				R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	4,614	$	43,727	$	28,276		$	432	$	776		$		1,809	$	510	$	2,663
Reinvested		53		462		2,395			–		–				10		13		46
Redeemed		(5,430	)	(8,779	)	(39,866	)		(1,231	)	(1,318	)			(1,071	)	(683	)	(7,958	)
Net Increase (Decrease)	$	(763	) $	35,410	$	(9,195	)	$	(799	) $	(542			) $	748	$	(160	) $	(5,249	)
Shares:
Sold		345		3,420		2,214			34		61				142		40		206
Reinvested		4		35		180			–		–				1		1		4
Redeemed		(436	)	(678	)	(3,120	)		(98	)	(101	)			(85	)	(53	)	(611	)
Net Increase (Decrease)		(87	)	2,777		(726	)		(64	)	(40	)			58		(12	)	(401	)
Year Ended October 31, 2015
Dollars:
Sold	$	5,708	$	35,660	$	31,361		$	803	$	1,111		$		1,351	$	1,236	$	3,571
Reinvested		19		5		7,340			58		40				78		117		189
Redeemed		(953	)	(423	)	(63,388	)		(1,383	)	(963	)			(2,006	)	(3,412	)	(3,360	)
Net Increase (Decrease)	$	4,774	$	35,242		$ (24,687)		$	(522	) $	188		$		(577	) $	(2,059	) $	400
Shares:
Sold		404		2,593		2,227			58		79				97		91		264
Reinvested		1		1		552			4		3				6		9		14
Redeemed		(68	)	(33	)	(4,631	)		(102	)	(71	)			(146	)	(249	)	(242	)
Net Increase (Decrease)		337		2,561		(1,852	)		(40	)	11				(43	)	(149	)	36

Distributions:
Year Ended October 31, 2016
From net investment income $		(54	) $	(462	) $	(2,395	)	$	– $		–		$		(10	) $	(13	) $	(46	)
From net realized gain on
investments		–		–		–			–		–				–		–		–
Total Dividends and Distributions $		(54	) $	(462	) $	(2,395	)	$	– $		– $				(10	) $	(13	) $	(46	)
Year Ended October 31, 2015
From net investment income $		(19	) $	(5	) $	(7,341	)	$	(58	) $	(40			) $	(78	) $	(117	) $	(189	)
From net realized gain on
investments		–		–		–			–		–				–		–		–
Total Dividends and Distributions $		(19	) $	(5	) $	(7,341	)	$	(58	) $	(40			) $	(78	) $	(117	) $	(189	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											LargeCap Growth Fund
																											Year Ended					Year Ended
																											October 31, 2016					October 31, 2015
Operations
Net investment income (loss)																											$		8,768			$				5,555
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																											296,482							341,289
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																											(418,694			)				(139,895			)
					Net Increase (Decrease) in Net Assets Resulting from Operations																						(113,444			)				206,949

Dividends and Distributions to Shareholders
From net investment income																													(6,377	)						(4,548	)
From net realized gain on investments																											(279,032			)				(354,865			)
																		Total Dividends and Distributions									(285,409			)				(359,413			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																											(501,378			)				(287,199			)
													Total Increase (Decrease) in Net Assets														(900,231			)				(439,663			)

Net Assets
Beginning of period																											2,942,498					3,382,161
End of period (including undistributed net investment income as set forth below)																										$	2,042,267				$	2,942,498
Undistributed (overdistributed) net investment income (loss)																											$		6,061			$				3,670

		Class A		Class B^(a)					Class C				Class J				Class P				Institutional			R-1			R-2		R-3			R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	12,632			N/A		$		3,627		$		7,835		$			1,620		$	86,796		$	422	$		648	$	2,033	$		2,497		$		6,012
Reinvested		36,599			N/A				1,760				7,268					1,011			227,564			591			333		1,757			1,382				5,952
Redeemed		(47,995	)		N/A				(6,019	)			(16,892	)				(3,740	)		(799,894	)		(1,585	)		(3,722	)	(5,808	)		(6,535	)			(17,527	)
Net Increase (Decrease)	$	1,236			N/A		$		(632)			$	(1,789)			$		(1,109)			$ (485,534)		$	(572)	$		(2,741)	$	(2,018)	$		(2,656)			$	(5,563	)
Shares:
Sold		1,307			N/A				406				864					161			8,721			46			67		199			240				576
Reinvested		3,712			N/A				196				783					99			22,099			63			35		167			132				574
Redeemed		(5,013	)		N/A				(694	)			(1,888	)				(377	)		(80,950	)		(176	)		(378	)	(565	)		(641	)			(1,697	)
Net Increase (Decrease)		6			N/A				(92	)			(241	)				(117	)		(50,130	)		(67	)		(276	)	(199	)		(269	)			(547	)
Year Ended October 31, 2015
Dollars:
Sold	$	23,057		$	21		$		5,251		$		18,150		$			4,590		$	360,232		$	830	$		1,353	$	4,547	$		5,902		$		6,042
Reinvested		38,756			648				1,554				7,185					1,030			296,834			668			612		2,056			1,398				7,299
Redeemed		(38,464	)		(6,032	)			(2,909	)			(16,994	)				(4,461	)		(971,587	)		(1,615	)		(2,070	)	(7,268	)		(5,772	)			(18,042	)
Net Increase (Decrease)	$	23,349		$	(5,363			) $	3,896		$		8,341		$			1,159		$	(314,521	)	$	(117	) $		(105	) $	(665	) $		1,528		$		(4,701	)
Shares:
Sold		2,118			2				527				1,757					401			31,102			81			127		397			523				534
Reinvested		3,774			71				163				739					97			27,862			67			61		189			129				681
Redeemed		(3,544	)		(618	)			(289	)			(1,656	)				(407	)		(86,296	)		(154	)		(200	)	(637	)		(508	)			(1,581	)
Net Increase (Decrease)		2,348			(545	)			401				840					91			(27,332	)		(6	)		(12	)	(51	)		144				(366	)

Distributions:
Year Ended October 31, 2016
From net investment income $		–			N/A $				– $				– $				(12) $				(6,359	)	$	– $			– $		– $			–		$		(6	)
From net realized gain on
investments		(37,050	)		N/A				(2,057	)			(7,273	)				(1,114	)		(221,506	)		(591	)		(356	)	(1,757	)		(1,382	)			(5,946	)
Total Dividends and Distributions	$ (37,050)				N/A		$		(2,057)			$	(7,273)			$		(1,126)			$ (227,865)		$	(591)	$		(356)	$	(1,757)	$		(1,382)			$	(5,952	)
Year Ended October 31, 2015
From net investment income $		–		$	–		$		–		$		–		$			–		$	(4,548	)	$	– $			– $		– $			–		$		–
From net realized gain on
investments		(39,229	)		(651	)			(1,811	)			(7,185	)				(1,156	)		(292,794	)		(668	)		(618	)	(2,056	)		(1,398	)			(7,299	)
Total Dividends and Distributions	$ (39,229)			$	(651			) $	(1,811)			$	(7,185)			$		(1,156)			$ (297,342)		$	(668)	$		(618)	$	(2,056)	$		(1,398)			$	(7,299	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								LargeCap Growth Fund I
																								Year Ended							Year Ended
																								October 31, 2016							October 31, 2015
Operations
Net investment income (loss)																								$				7,527			$		11,369
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																										334,513							980,836
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																										(317,388			)				(275,426	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																							24,652					716,779

Dividends and Distributions to Shareholders
From net investment income																												(3,979	)				(20,583	)
From net realized gain on investments																										(816,477			)				(705,653	)
																Total Dividends and Distributions										(820,456			)				(726,236	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										513,498							(409,112	)
												Total Increase (Decrease) in Net Assets														(282,306			)				(418,569	)

Net Assets
Beginning of period																										7,340,288							7,758,857
End of period (including undistributed net investment income as set forth below)																								$		7,057,982					$		7,340,288
Undistributed (overdistributed) net investment income (loss)																								$				4,787			$		1,122

		Class A			Class J				Class P			Institutional				R-1		R-2			R-3			R-4				R-5			R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	17,688		$	17,522		$		199		$	648,045		$		1,156	$	2,143	$		10,233	$		13,483		$		33,920	$		3,099
Reinvested		1,761			16,079				145			735,012				965		1,934			17,360			10,727				36,158			171
Redeemed		(9,740	)		(29,701	)			(369	)		(847,019	)			(2,435	)	(5,031	)		(45,039	)		(33,466	)			(80,205	)		(1,297	)
Net Increase (Decrease)	$	9,709		$	3,900		$		(25) $			536,038		$		(314	) $	(954)			$ (17,446)		$	(9,256)				$ (10,127)			$1,973
Shares:
Sold		1,507			1,689				17			54,867				111		209			933			1,219				2,922			269
Reinvested		150			1,581				12			61,459				90		186			1,558			952				3,117			14
Redeemed		(847	)		(2,969	)			(31	)		(71,398	)			(232	)	(490	)		(4,043	)		(2,997	)			(7,010	)		(109	)
Net Increase (Decrease)		810			301				(2	)		44,928				(31	)	(95	)		(1,552	)		(826	)			(971	)		174
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	11,162		$	27,589		$		1,241		$	1,095,097			$	1,242	$	3,740	$		15,680	$		21,871		$		29,817	$		1,340
Reinvested		630			11,161				2			654,987				851		2,150			15,708			9,386				31,288			1

Redeemed		(3,769	)		(20,641	)			(8)			(2,169,862	)			(2,291)		(10,252	)		(42,852	)		(26,054	)			(68,268	)		(58	)
Net Increase (Decrease)	$	8,023		$	18,109		$		1,235		$	(419,778	)	$		(198)	$	(4,362) $			(11,464)		$	5,203		$		(7,163	) $		1,283
Shares:
Sold		855			2,411				96			83,898				104		320			1,270			1,742				2,333			107
Reinvested		52			1,056				–			53,730				76		198			1,369			812				2,638			–
Redeemed		(290	)		(1,820	)			(1	)		(164,983	)			(192	)	(881	)		(3,495	)		(2,122	)			(5,433	)		(4	)
Net Increase (Decrease)		617			1,647				95			(27,355	)			(12	)	(363	)		(856	)		432				(462	)		103

Distributions:
Year Ended October 31, 2016
From net investment income $		–		$	–		$		– $			(3,978	)	$		– $		– $			– $			–		$		– $			(1	)
From net realized gain on
investments		(1,819	)		(16,081	)			(146	)		(731,041	)			(965	)	(2,010	)		(17,360	)		(10,727	)			(36,158	)		(170	)
Total Dividends and Distributions $		(1,819)		$	(16,081)			$	(146)			$ (735,019)		$		(965)	$	(2,010)			$ (17,360)	$		(10,727)			$	(36,158)		$	(171	)
Year Ended October 31, 2015^(a)
From net investment income $		– $			– $				–		$	(20,315	)	$		– $		– $			– $			–		$		(268)	$		–
From net realized gain on
investments		(652	)		(11,162	)			(2	)		(634,676	)			(851	)	(2,195	)		(15,708	)		(9,386	)			(31,020	)		(1	)
Total Dividends and Distributions $		(652)			$ (11,162)		$		(2) $			(654,991	)	$		(851	) $	(2,195)		$	(15,708) $			(9,386)				$ (31,288)		$	(1	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																							LargeCap Growth Fund II
																							Year Ended		Year Ended
																							October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																						$	3,907		$	4,379
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																							19,590			173,425
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																							(21,940	)		(121,245	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																			1,557			56,559

Dividends and Distributions to Shareholders
From net investment income																							(3,499	)		(5,655	)
From net realized gain on investments																							(81,620	)		(182,605	)
																Total Dividends and Distributions							(85,119	)		(188,260	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							(32,456	)		(351,614	)
												Total Increase (Decrease) in Net Assets											(116,018	)		(483,315	)

Net Assets
Beginning of period																							641,944		1,125,259
End of period (including undistributed net investment income as set forth below)																						$	525,926		$	641,944
Undistributed (overdistributed) net investment income (loss)																						$	3,087		$	2,634
		Class J		Institutional				R-1				R-2				R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	3,509	$	10,496		$		165		$		381		$		802	$	614	$	1,300
Reinvested		5,157		77,467				188				233				902		315		852
Redeemed		(4,773	)	(122,560	)			(695	)			(351	)			(3,674	)	(565	)	(2,219	)
Net Increase (Decrease)	$	3,893		$ (34,597)		$		(342)			$	263		$		(1,970)	$	364	$	(67	)
Shares:
Sold		536		1,263				23				55				116		79		174
Reinvested		796		9,926				26				34				128		43		114
Redeemed		(727	)	(15,549	)			(102	)			(52	)			(526	)	(77	)	(297	)
Net Increase (Decrease)		605		(4,360	)			(53	)			37				(282	)	45		(9	)
Year Ended October 31, 2015
Dollars:
Sold	$	3,434	$	17,107		$		193		$		284		$		1,577	$	1,001	$	1,015
Reinvested		9,036		172,742				292				435				1,877		1,398		2,473
Redeemed		(6,966	)	(541,621	)			(76	)			(573	)			(3,799	)	(5,063	)	(6,380	)
Net Increase (Decrease)	$	5,504		$ (351,772)			$	409		$		146		$		(345)	$	(2,664)	$	(2,892	)
Shares:
Sold		448		1,894				22				36				192		113		107
Reinvested		1,241		20,215				37				57				240		172		300
Redeemed		(899	)	(54,204	)			(9	)			(72	)			(443	)	(607	)	(718	)
Net Increase (Decrease)		790		(32,095	)			50				21				(11	)	(322	)	(311	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(94)	$	(3,381	)	$		–		$		–		$		(1)	$	(4)	$	(19	)
From net realized gain on
investments		(5,063	)	(74,091	)			(188	)			(233	)			(901	)	(311	)	(833	)
Total Dividends and Distributions $		(5,157)		$ (77,472)		$		(188)			$	(233			) $	(902)	$	(315)	$	(852	)
Year Ended October 31, 2015
From net investment income $		(153	) $	(5,432	)	$		–		$		–		$		(3	) $	(23	) $	(44	)
From net realized gain on
investments		(8,883	)	(167,317	)			(292	)			(435	)			(1,874	)	(1,375	)	(2,429	)
Total Dividends and Distributions $		(9,036)		$ (172,749)		$		(292)			$	(435			) $	(1,877)	$	(1,398)	$	(2,473	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																										LargeCap S&P 500 Index Fund
																										Year Ended				Year Ended
																										October 31, 2016				October 31, 2015
Operations
Net investment income (loss)																										$		93,028		$	79,574
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												88,344			133,514
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																												22,907			(14,518	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																				204,279					198,570

Dividends and Distributions to Shareholders
From net investment income																												(83,122	)		(68,885	)
From net realized gain on investments																												(38,990	)		(2,702	)
																	Total Dividends and Distributions									(122,112			)		(71,587	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												(54,722	)		546,355
													Total Increase (Decrease) in Net Assets															27,445			673,338

Net Assets
Beginning of period																										4,922,362					4,249,024
End of period (including undistributed net investment income as set forth below)																									$	4,949,807				$	4,922,362
Undistributed (overdistributed) net investment income (loss)																										$		71,909		$	62,433

		Class A				Class C				Class J			Institutional				R-1				R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	62,244		$		15,677		$		64,514		$	454,080		$		3,825		$		7,981	$	37,527	$		45,333	$	86,535
Reinvested		6,011				573				12,130			84,428				373				577		4,258			4,834		8,736
Redeemed		(52,292	)			(7,889	)			(72,682	)		(580,138	)			(7,190	)			(9,776	)	(67,849	)		(81,810	)	(74,732	)
Net Increase (Decrease)	$	15,963		$		8,361		$		3,962		$	(41,630	)	$		(2,992)			$	(1,218)		$ (26,064)			$ (31,643)	$	20,539
Shares:
Sold		4,249				1,098				4,482			31,365				265				548		2,595			3,133		5,985
Reinvested		423				41				862			5,953				27				41		299			339		608
Redeemed		(3,613	)			(558	)			(5,059	)		(39,869	)			(499	)			(662	)	(4,659	)		(5,692	)	(5,077	)
Net Increase (Decrease)		1,059				581				285			(2,551	)			(207	)			(73	)	(1,765	)		(2,220	)	1,516
Year Ended October 31, 2015
Dollars:
Sold	$	63,932		$		14,630		$		68,403		$	1,169,162			$	5,603		$		6,579	$	50,069	$		60,520	$	65,697
Reinvested		3,907				253				8,101			45,292				204				425		2,985			3,424		6,889
Redeemed		(52,171	)			(8,424	)			(83,082	)		(588,085	)			(4,197	)			(15,153	)	(91,167	)		(65,456	)	(121,985	)
Net Increase (Decrease)	$	15,668		$		6,459		$		(6,578)			$ 626,369		$		1,610		$		(8,149)		$ (38,113)	$		(1,512)		$ (49,399)
Shares:
Sold		4,399				1,020				4,765			79,636				389				450		3,442			4,152		4,492
Reinvested		269				18				563			3,123				14				29		205			235		469
Redeemed		(3,587	)			(601	)			(5,771	)		(40,684	)			(289	)			(1,043	)	(6,291	)		(4,520	)	(8,292	)
Net Increase (Decrease)		1,081				437				(443	)		42,075				114				(564	)	(2,644	)		(133	)	(3,331	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(4,026)			$	(312)			$	(8,010)			$ (58,778)		$		(205)			$	(325)	$	(2,581)	$		(3,112)	$	(5,773	)
From net realized gain on
investments		(2,126	)			(297	)			(4,131	)		(25,654	)			(168	)			(252	)	(1,677	)		(1,722	)	(2,963	)
Total Dividends and Distributions $		(6,152)			$	(609)			$	(12,141)			$ (84,432)		$		(373)			$	(577)	$	(4,258)	$		(4,834)	$	(8,736	)
Year Ended October 31, 2015
From net investment income $		(3,815)			$	(259)			$	(7,772)			$ (43,718)		$		(191)			$	(400)	$	(2,835)	$		(3,279)	$	(6,616	)
From net realized gain on
investments		(165	)			(19	)			(338	)		(1,574	)			(13	)			(25	)	(150	)		(145	)	(273	)
Total Dividends and Distributions $		(3,980)			$	(278)			$	(8,110)			$ (45,292)		$		(204)			$	(425)	$	(2,985)	$		(3,424)	$	(6,889	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											LargeCap Value Fund
																									Year Ended									Year Ended
																									October 31, 2016									October 31, 2015
Operations
Net investment income (loss)																									$				47,585					$		54,424
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																													56,849					268,414
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																											(132,928			)				(207,988			)
						Net Increase (Decrease) in Net Assets Resulting from Operations																							(28,494	)				114,850

Dividends and Distributions to Shareholders
From net investment income																													(50,071	)						(57,750	)
From net realized gain on investments																											(171,070			)				(349,771			)
														Total Dividends and Distributions													(221,141			)				(407,521			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																											110,174							(974,058			)
											Total Increase (Decrease) in Net Assets																(139,461			)				(1,266,729			)

Net Assets
Beginning of period																											2,482,636							3,749,365
End of period (including undistributed net investment income as set forth below)																									$		2,343,175						$	2,482,636
Undistributed (overdistributed) net investment income (loss)																									$				39,182					$		39,643
		Class A			Class B^(a)				Class C		Class J		Class P				Institutional				R-1				R-2				R-3					R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	6,358				N/A	$		988	$	4,978	$		180		$	270,191		$		569		$		803		$		1,008		$			612	$	1,499
Reinvested		16,673				N/A			558		6,030			22			196,130				112				76				327					191		522
Redeemed		(24,388	)			N/A			(2,044	)	(11,532	)		(211	)		(351,572	)			(568	)			(492	)			(1,043	)				(1,258	)	(4,545	)
Net Increase (Decrease)	$	(1,357	)			N/A	$		(498	) $	(524)	$		(9)		$	114,749		$		113		$		387		$		292		$			(455)	$	(2,524	)
Shares:
Sold		557				N/A			86		444			16			23,847				52				71				88					53		128
Reinvested		1,433				N/A			49		528			2			16,875				10				7				28					17		45
Redeemed		(2,109	)			N/A			(182	)	(1,024	)		(18	)		(30,516	)			(51	)			(42	)			(92	)				(110	)	(384	)
Net Increase (Decrease)		(119	)			N/A			(47	)	(52	)		–			10,206				11				36				24					(40	)	(211	)
Year Ended October 31, 2015
Dollars:
Sold	$	9,802		$		16	$		1,396	$	6,826	$		227		$	299,948		$		338		$		879		$		1,137		$			756	$	1,319
Reinvested		22,528				140			797		8,344			29			372,853				154				333				522					277		909

Redeemed		(24,631	)			(1,528		)	(2,311	)	(15,227	)		(165)			(1,650,721	)			(390	)			(2,927	)			(1,953	)				(1,281	)	(2,454	)
Net Increase (Decrease)	$	7,699		$		(1,372)		$	(118	) $	(57)	$		91		$	(977,920)			$	102		$		(1,715)			$	(294)			$		(248)	$	(226	)
Shares:
Sold		764				1			112		542			17			22,562				26				70				88					61		103
Reinvested		1,782				11			65		672			3			29,481				12				27				42					22		72
Redeemed		(1,915	)			(118		)	(185	)	(1,208	)		(13	)		(127,294	)			(31	)			(235	)			(155	)				(103	)	(192	)
Net Increase (Decrease)		631				(106		)	(8	)	6			7			(75,251	)			7				(138	)			(25	)				(20	)	(17	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(3,253	)			N/A	$		(59	) $	(1,198)	$		(5)		$	(45,316	)	$		(16)			$	(23)			$	(58)			$		(37)	$	(106	)
From net realized gain on
investments		(13,810	)			N/A			(520	)	(4,836	)		(17	)		(150,814	)			(96	)			(138	)			(269	)				(154	)	(416	)
Total Dividends and Distributions	$ (17,063)					N/A	$		(579	) $	(6,034)	$		(22)		$	(196,130	)	$		(112)			$	(161)			$	(327)			$		(191)	$	(522	)
Year Ended October 31, 2015
From net investment income $		(2,533)			$	–	$		(33	) $	(954)	$		(4)			$(53,978	)	$		(11)			$	(39)			$	(55)			$		(31)	$	(112	)
From net realized gain on
investments		(20,481	)			(144		)	(792	)	(7,392	)		(25	)		(318,875	)			(143	)			(409	)			(467	)				(246	)	(797	)
Total Dividends and Distributions	$ (23,014)			$		(144)		$	(825	) $	(8,346)	$		(29)		$	(372,853	)	$		(154)			$	(448)			$	(522)			$		(277)	$	(909	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																		LargeCap Value Fund III
																		Year Ended		Year Ended
																		October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																	$	33,757		$	36,401
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																		55,398			254,545
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																		(30,631	)		(206,245	)
				Net Increase (Decrease) in Net Assets Resulting from Operations														58,524			84,701

Dividends and Distributions to Shareholders
From net investment income																		(33,414	)		(42,941	)
From net realized gain on investments																		(109,456	)		(27,176	)
											Total Dividends and Distributions							(142,870	)		(70,117	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																		(89,202	)	(1,034,389		)
									Total Increase (Decrease) in Net Assets									(173,548	)	(1,019,805		)

Net Assets
Beginning of period																		1,908,341			2,928,146
End of period (including undistributed net investment income as set forth below)																	$	1,734,793		$	1,908,341
Undistributed (overdistributed) net investment income (loss)																	$	26,867		$	26,760

		Class J		Institutional			R-1		R-2		R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	3,486		$ 107,210		$	564	$	911	$	1,629	$	1,001	$	2,397
Reinvested		5,197		135,199			311		210		799		442		705
Redeemed		(9,373	)	(324,732	)		(1,177	)	(2,896	)	(2,577	)	(1,806	)	(6,702	)
Net Increase (Decrease)	$	(690)		$ (82,323)		$	(302	) $	(1,775	) $	(149	) $	(363	) $	(3,600	)
Shares:
Sold		239		7,393			39		63		106		68		157
Reinvested		363		9,333			21		15		53		31		48
Redeemed		(646	)	(22,098	)		(82	)	(192	)	(169	)	(122	)	(446	)
Net Increase (Decrease)		(44	)	(5,372	)		(22	)	(114	)	(10	)	(23	)	(241	)
Year Ended October 31, 2015
Dollars:
Sold	$	4,230		$ 328,215		$	480	$	1,070	$	1,091	$	1,411	$	3,698
Reinvested		1,694		67,490			98		109		290		212		220

Redeemed		(11,846)		(1,418,281)			(1,141	)	(1,895	)	(4,784	)	(4,724	)	(2,026	)
		$
Net Increase (Decrease)	$	(5,922)		(1,022,576)	$		(563	) $	(716	) $	(3,403	) $	(3,101	) $	1,892
Shares:
Sold		270		20,552			31		67		67		89		231
Reinvested		109		4,285			6		7		18		13		14
Redeemed		(761	)	(89,167	)		(72	)	(121	)	(290	)	(296	)	(128	)
Net Increase (Decrease)		(382	)	(64,330	)		(35	)	(47	)	(205	)	(194	)	117

Distributions:
Year Ended October 31, 2016
From net investment income $		(1,017)		$ (31,977)		$	(41	) $	(19	) $	(132	) $	(84	) $	(144	)
From net realized gain on
investments		(4,187	)	(103,222	)		(270	)	(191	)	(667	)	(358	)	(561	)
Total Dividends and Distributions $		(5,204) $		(135,199)		$	(311	) $	(210	) $	(799	) $	(442	) $	(705	)
Year Ended October 31, 2015
From net investment income $		(928)		$ (41,516)		$	(48	) $	(53	) $	(149	) $	(120	) $	(127	)
From net realized gain on
investments		(768	)	(25,974	)		(51	)	(57	)	(141	)	(92	)	(93	)
Total Dividends and Distributions $		(1,696)		$ (67,490)		$	(99	) $	(110	) $	(290	) $	(212	) $	(220	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												MidCap Fund
																										Year Ended					Year Ended
																										October 31, 2016					October 31, 2015
Operations
Net investment income (loss)																										$		41,620			$			11,192
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																										286,978					699,848
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																										123,231					(139,834				)
						Net Increase (Decrease) in Net Assets Resulting from Operations																				451,829					571,206

Dividends and Distributions to Shareholders
From net investment income																												(8,962	)					(22,322	)
From net realized gain on investments																										(639,107			)		(448,289				)
															Total Dividends and Distributions											(648,069			)		(470,611				)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										544,438					2,186,740
													Total Increase (Decrease) in Net Assets													348,198					2,287,335

Net Assets
Beginning of period																										11,152,561					8,865,226
End of period (including undistributed net investment income as set forth below)																									$	11,500,759				$	11,152,561
Undistributed (overdistributed) net investment income (loss)																										$		44,515			$			9,383

		Class A		Class B^(a)							Class C		Class J		Class P		Institutional				R-1					R-2		R-3			R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	555,502				N/A			$		17,595	$	2,473		$ 1,254,177	$	1,484,195			$	12,657		$			7,537	$	23,428	$		36,625	$		75,620
Reinvested		107,141				N/A					17,054		16,554		121,589		231,889				3,695					1,750		8,705			8,522			18,381

Redeemed		(516,465	)			N/A					(60,187	)	(30,957)		(1,010,311)		(1,607,133)				(6,878	)				(13,827	)	(55,445	)		(51,584	)		(107,864	)
Net Increase (Decrease)	$	146,178				N/A		$			(25,538)		$ (11,930)		$ 365,455	$	108,951		$		9,474		$			(4,540)		$ (23,312)		$	(6,437)	$		(13,863)
Shares:
Sold		25,906				N/A					907		121		58,898		69,929				641					377		1,137			1,735			3,675
Reinvested		5,265				N/A					903		845		5,892		11,205				192					90		435			413			898
Redeemed		(24,661	)			N/A					(3,092	)	(1,541	)	(47,971	)	(75,654	)			(349	)				(707	)	(2,709	)		(2,418	)		(5,256	)
Net Increase (Decrease)		6,510				N/A					(1,282	)	(575	)	16,819		5,480				484					(240	)	(1,137	)		(270	)		(683	)
Year Ended October 31, 2015
Dollars:
Sold	$	405,982			$	37			$		23,655	$	4,450		$ 1,040,954	$	2,446,404			$	30,644		$			9,227	$	39,289	$		67,468		$	138,143
Reinvested		83,960				660					14,443		14,862		78,478		157,613				1,793					1,739		7,866			8,154			13,558

Redeemed		(381,011	)			(14,582	)				(46,427	)	(34,547	)	(506,905)		(1,152,717)				(6,146	)				(17,469	)	(55,805	)		(90,974	)		(96,056	)
Net Increase (Decrease)	$	108,931		$	(13,885)					$	(8,329)		$ (15,235)		$ 612,527	$	1,451,300			$	26,291		$			(6,503	) $	(8,650)			$ (15,352)		$	55,645
Shares:
Sold		18,059				2					1,130		205		45,954		107,085				1,426					428		1,775			2,964			6,176
Reinvested		3,987				33					730		730		3,668		7,346				89					86		379			382			639
Redeemed		(17,061	)			(672	)				(2,210	)	(1,600	)	(22,353	)	(50,492	)			(288	)				(825	)	(2,535	)		(4,063	)		(4,296	)
Net Increase (Decrease)		4,985				(637	)				(350	)	(665	)	27,269		63,939				1,227					(311	)	(381	)		(717	)		2,519

Distributions:
Year Ended October 31, 2016
From net investment income		$ –				N/A $					– $		– $		(2,468	) $	(6,494	)	$		–		$			– $		– $			– $			–
From net realized gain on
investments		(115,062	)			N/A					(21,364	)	(16,573	)	(142,666	)	(302,093	)			(3,698	)				(2,039	)	(8,705	)		(8,522	)		(18,385	)
Total Dividends and Distributions		$ (115,062)				N/A		$			(21,364)		$ (16,573)	$	(145,134)		$ (308,587)		$		(3,698)			$		(2,039	) $	(8,705)	$		(8,522)	$		(18,385)
Year Ended October 31, 2015
From net investment income		$ (18) $				– $					– $		(387	) $	(6,017)		$ (15,264)		$		–		$			– $		– $			(101	) $		(535	)
From net realized gain on
investments		(90,324	)			(672	)				(18,134	)	(14,483	)	(88,014	)	(203,895	)			(1,794	)				(2,027	)	(7,866	)		(8,053	)		(13,027	)
Total Dividends and Distributions		$ (90,342)			$	(672)					$ (18,134)		$ (14,870)		$ (94,031)		$ (219,159)		$		(1,794)			$		(2,027	) $	(7,866)	$		(8,154)		$	(13,562)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																													MidCap Growth Fund
																													Year Ended			Year Ended
																													October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																												$	245		$	(582	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																													(7,645	)		6,893
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																													3,439			557
							Net Increase (Decrease) in Net Assets Resulting from Operations																						(3,961	)		6,868

Dividends and Distributions to Shareholders
From net realized gain on investments																													(3,516	)		(19,382	)
																		Total Dividends and Distributions											(3,516	)		(19,382	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																													(5,790	)		55,374
														Total Increase (Decrease) in Net Assets															(13,267	)		42,860

Net Assets
Beginning of period																													142,998			100,138
End of period (including undistributed net investment income as set forth below)																												$	129,731		$	142,998
Undistributed (overdistributed) net investment income (loss)																												$	257		$	–

			Class J				Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold		$	9,441		$		21,128		$	377		$		1,862		$		3,163		$		3,544		$		4,314
Reinvested			1,778				718			42				54				275				120				377
Redeemed			(22,745	)			(15,913	)		(654	)			(1,688	)			(4,647	)			(2,328	)			(5,008	)
Net Increase (Decrease)	$	(11,526)				$	5,933		$	(235)			$	228		$		(1,209)			$	1,336		$		(317	)
Shares:
Sold			1,744				3,158			66				309				501				555				628
Reinvested			324				105			7				9				42				17				53
Redeemed			(4,236	)			(2,350	)		(114	)			(270	)			(714	)			(341	)			(707	)
Net Increase (Decrease)			(2,168	)			913			(41	)			48				(171	)			231				(26	)
Year Ended October 31, 2015
Dollars:
Sold		$	40,060		$		18,888		$	473		$		2,420		$		10,442		$		4,974		$		4,544
Reinvested			9,699				4,099			281				460				939				430				2,721
Redeemed			(19,483	)			(16,245	)		(231	)			(1,574	)			(3,203	)			(2,095	)			(2,225	)
Net Increase (Decrease)		$	30,276		$		6,742		$	523		$		1,306		$		8,178		$		3,309		$		5,040
Shares:
Sold			6,646				2,588			76				361				1,496				689				589
Reinvested			1,776				607			49				75				145				64				390
Redeemed			(3,282	)			(2,072	)		(38	)			(241	)			(458	)			(287	)			(286	)
Net Increase (Decrease)			5,140				1,123			87				195				1,183				466				693

Distributions:
Year Ended October 31, 2016
From net investment income $			–		$		–		$	–		$		–		$		–		$		–		$		–
From net realized gain on
investments			(1,779	)			(830	)		(42	)			(92	)			(276	)			(120	)			(377	)
Total Dividends and Distributions $			(1,779)			$	(830	)	$	(42)			$	(92)			$	(276)			$	(120)			$	(377	)
Year Ended October 31, 2015
From net investment income $			–		$		–		$	–		$		–		$		–		$		–		$		–
From net realized gain on
investments			(9,699	)			(4,718	)		(281	)			(594	)			(939	)			(430	)			(2,721	)
Total Dividends and Distributions $			(9,699)			$	(4,718)		$	(281)			$	(594)			$	(939)			$	(430)			$	(2,721	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																							MidCap Growth Fund III
																							Year Ended		Year Ended
																							October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																						$	(800	)	$	(5,382	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																							4,761			87,997
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																							(19,583	)		(39,916	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																		(15,622	)		42,699

Dividends and Distributions to Shareholders
From net realized gain on investments																							(66,578	)		(303,330	)
																Total Dividends and Distributions							(66,578	)		(303,330	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							51,031			173,725
												Total Increase (Decrease) in Net Assets											(31,169	)		(86,906	)

Net Assets
Beginning of period																							1,389,656			1,476,562
End of period (including undistributed net investment income as set forth below)																						$	1,358,487		$	1,389,656
Undistributed (overdistributed) net investment income (loss)																						$	(1,300	)	$	(3,475	)

		Class J			Institutional			R-1				R-2				R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	1,966		$	230,031		$	286		$		436		$		779	$	1,296	$	2,007
Reinvested		1,977			62,944			165				185				414		389		504
Redeemed		(5,079	)		(232,618	)		(1,104	)			(1,539	)			(3,096	)	(3,761	)	(5,151	)
Net Increase (Decrease)	$	(1,136)			$ 60,357		$	(653)			$	(918)			$	(1,903	) $	(2,076	) $	(2,640	)
Shares:
Sold		237			23,709			34				51				83		139		197
Reinvested		243			6,530			20				22				45		41		52
Redeemed		(619	)		(23,841	)		(134	)			(173	)			(331	)	(393	)	(516	)
Net Increase (Decrease)		(139	)		6,398			(80	)			(100	)			(203	)	(213	)	(267	)
Year Ended October 31, 2015
Dollars:
Sold	$	3,213		$	219,299		$	433		$		778		$		1,266	$	3,528	$	3,541
Reinvested		8,568			282,248			741				1,071				3,723		4,659		2,320
Redeemed		(6,338	)		(318,909	)		(999	)			(1,611	)			(11,307	)	(18,236	)	(4,263	)
Net Increase (Decrease)	$	5,443		$	182,638		$	175		$		238		$		(6,318)		$ (10,049) $		1,598
Shares:
Sold		347			19,227			45				79				120		333		327
Reinvested		985			27,726			83				117				380		466		225
Redeemed		(683	)		(28,743	)		(103	)			(166	)			(1,106	)	(1,785	)	(400	)
Net Increase (Decrease)		649			18,210			25				30				(606	)	(986	)	152

Distributions:
Year Ended October 31, 2016
From net investment income $		–			$ –		$	–		$		–		$		– $		– $		–
From net realized gain on
investments		(1,977	)		(62,944	)		(165	)			(185	)			(414	)	(389	)	(504	)
Total Dividends and Distributions $		(1,977)			$ (62,944)		$	(165)			$	(185)			$	(414	) $	(389	) $	(504	)
Year Ended October 31, 2015
From net investment income $		–			$ –		$	–		$		–		$		– $		– $		–
From net realized gain on
investments		(8,568	)		(282,248	)		(741	)			(1,071	)			(3,723	)	(4,659	)	(2,320	)
Total Dividends and Distributions $		(8,568)			$ (282,248) $			(741)			$	(1,071)			$	(3,723	) $	(4,659	) $	(2,320	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								MidCap S&P 400 Index Fund
																								Year Ended		Year Ended
																								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																							$	16,342		$	12,669
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																								73,153			82,408
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																								(25,400	)		(61,984	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																			64,095			33,093

Dividends and Distributions to Shareholders
From net investment income																								(13,157	)		(11,215	)
From net realized gain on investments																								(71,785	)		(50,566	)
												Total Dividends and Distributions												(84,942	)		(61,781	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																								43,009			99,054
										Total Increase (Decrease) in Net Assets														22,162			70,366

Net Assets
Beginning of period																								1,184,268			1,113,902
End of period (including undistributed net investment income as set forth below)																							$	1,206,430		$	1,184,268
Undistributed (overdistributed) net investment income (loss)																							$	12,738		$	9,572

		Class J			Institutional			R-1		R-2		R-3			R-4						R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	24,560		$	153,339		$	4,228	$	3,246	$	25,870	$		23,415			$			54,468
Reinvested		6,706			46,232			1,255		1,080		7,442			8,117						13,634
Redeemed		(17,352	)		(143,974	)		(11,959	)	(5,567	)	(40,811	)		(43,118	)					(67,802	)
Net Increase (Decrease)	$	13,914		$	55,597		$	(6,476)	$	(1,241	) $	(7,499)		$	(11,586)					$	300
Shares:
Sold		1,354			8,325			229		174		1,393			1,254						2,899
Reinvested		391			2,626			72		61		417			455						756
Redeemed		(965	)		(7,938	)		(649	)	(296	)	(2,197	)		(2,342	)					(3,598	)
Net Increase (Decrease)		780			3,013			(348	)	(61	)	(387	)		(633	)					57
Year Ended October 31, 2015
Dollars:
Sold	$	21,275		$	171,282		$	4,057	$	4,022	$	37,170	$		34,266			$			48,651
Reinvested		4,846			30,172			1,033		1,034		6,466			6,043						11,661
Redeemed		(18,645	)		(100,146	)		(5,789	)	(8,163	)	(50,508	)		(28,670	)					(71,003	)
Net Increase (Decrease)	$	7,476		$	101,308		$	(699)	$	(3,107	) $	(6,872)	$		11,639		$	(10,691				)
Shares:
Sold		1,088			8,668			207		199		1,844			1,694						2,399
Reinvested		258			1,569			54		53		333			310						594
Redeemed		(959	)		(5,032	)		(292	)	(406	)	(2,507	)		(1,436	)					(3,516	)
Net Increase (Decrease)		387			5,205			(31	)	(154	)	(330	)		568						(523	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(925)			$ (8,215)		$	(79)	$	(78)	$	(782)	$		(1,076)				$		(2,002	)
From net realized gain on
investments		(5,782	)		(38,492	)		(1,176	)	(1,002	)	(6,660	)		(7,041	)					(11,632	)
Total Dividends and Distributions $		(6,707)			$ (46,707)		$	(1,255	) $	(1,080	) $	(7,442)	$		(8,117)						$ (13,634)
Year Ended October 31, 2015
From net investment income $		(752)			$ (6,410)		$	(81)	$	(96	) $	(845)	$		(957)				$		(2,074	)
From net realized gain on
investments		(4,095	)		(24,285	)		(952	)	(938	)	(5,623	)		(5,086	)					(9,587	)
Total Dividends and Distributions $		(4,847)			$ (30,695)		$	(1,033)	$	(1,034	) $	(6,468)	$		(6,043)						$ (11,661)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																					MidCap Value Fund I
																					Year Ended		Year Ended
																					October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																				$	19,175		$	11,109
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																					1,774			162,905
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																					6,861			(181,247	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																27,810			(7,233	)

Dividends and Distributions to Shareholders
From net investment income																					(12,346	)		(9,290	)
From net realized gain on investments																					(152,143	)		(226,569	)
													Total Dividends and Distributions								(164,489	)		(235,859	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																					(479,287	)		337,821
											Total Increase (Decrease) in Net Assets										(615,966	)		94,729

Net Assets
Beginning of period																					1,727,793			1,633,064
End of period (including undistributed net investment income as set forth below)																				$	1,111,827		$	1,727,793
Undistributed (overdistributed) net investment income (loss)																				$	14,242		$	7,308

		Class J			Institutional				R-1		R-2		R-3		R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	4,113		$	33,634		$		583	$	725	$	2,454	$	4,094	$		8,583
Reinvested		6,601			145,283				496		653		2,660		2,523			6,179
Redeemed		(10,169	)		(632,412	)			(1,561	)	(4,613	)	(12,299	)	(11,494	)		(25,320	)
Net Increase (Decrease)	$	545		$	(453,495)			$	(482	) $	(3,235	) $	(7,185	) $	(4,877)		$	(10,558)
Shares:
Sold		324			2,601				47		59		198		320			662
Reinvested		539			11,725				42		54		218		207			503
Redeemed		(802	)		(49,117	)			(126	)	(356	)	(972	)	(906	)		(1,961	)
Net Increase (Decrease)		61			(34,791	)			(37	)	(243	)	(556	)	(379	)		(796	)
Year Ended October 31, 2015
Dollars:
Sold	$	10,925		$	434,439		$		701	$	1,721	$	6,210	$	7,980	$		12,187
Reinvested		10,135			202,974				869		1,489		4,615		4,945			10,737
Redeemed		(17,652	)		(287,139	)			(2,141	)	(4,258	)	(14,040	)	(17,490	)		(29,386	)
Net Increase (Decrease)	$	3,408		$	350,274		$		(571	) $	(1,048	) $	(3,215	) $	(4,565	) $		(6,462	)
Shares:
Sold		726			28,273				49		118		421		527			817
Reinvested		705			13,958				62		106		323		345			744
Redeemed		(1,192	)		(19,253	)			(147	)	(291	)	(944	)	(1,189	)		(1,976	)
Net Increase (Decrease)		239			22,978				(36	)	(67	)	(200	)	(317	)		(415	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(271)			$ (11,612)		$		– $		– $		(43	) $	(96	) $		(324	)
From net realized gain on
investments		(6,335	)		(133,737	)			(496	)	(667	)	(2,617	)	(2,427	)		(5,864	)
Total Dividends and Distributions $		(6,606)			$ (145,349)			$	(496	) $	(667	) $	(2,660	) $	(2,523	) $		(6,188	)
Year Ended October 31, 2015
From net investment income $		(146)			$ (8,786)		$		– $		– $		– $		(87	) $		(271	)
From net realized gain on
investments		(9,992	)		(194,251	)			(869	)	(1,518	)	(4,615	)	(4,858	)		(10,466	)
Total Dividends and Distributions		$ (10,138)			$ (203,037)		$		(869	) $	(1,518	) $	(4,615	) $	(4,945)			$ (10,737)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																															MidCap Value Fund III
																													Year Ended								Year Ended
																													October 31, 2016								October 31, 2015
Operations
Net investment income (loss)																													$				18,616				$		12,478
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																																	8,744						42,793
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																																	(18,560	)					(44,866	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																											8,800						10,405

Dividends and Distributions to Shareholders
From net investment income																																	(12,555	)					(11,507	)
From net realized gain on investments																																	(25,650	)					(69,078	)
																	Total Dividends and Distributions																(38,205	)					(80,585	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																															186,357								142,377
														Total Increase (Decrease) in Net Assets																	156,952								72,197

Net Assets
Beginning of period																															1,052,491								980,294
End of period (including undistributed net investment income as set forth below)																													$		1,209,443						$		1,052,491
Undistributed (overdistributed) net investment income (loss)																													$				14,772				$		8,971

		Class A			Class J					Class P				Institutional			R-1				R-2				R-3				R-4				R-5				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	7,210		$		3,455		$			612		$	294,563		$	457		$		591		$		7,948		$		7,256		$		7,725		$		309
Reinvested		431				3,598					12			31,706			48				69				532				640				986				137
Redeemed		(4,204	)			(13,248	)				(104	)		(143,886	)		(951	)			(835	)			(5,819	)			(5,134	)			(7,070	)			(677	)
Net Increase (Decrease)	$	3,437		$		(6,195)			$		520		$	182,383		$	(446)			$	(175)			$	2,661		$		2,762		$		1,641		$		(231	)
Shares:
Sold		399				203					34			16,230			28				35				463				426				448				17
Reinvested		24				213					1			1,771			3				4				31				38				58				8
Redeemed		(236	)			(773	)				(6	)		(7,919	)		(56	)			(48	)			(339	)			(301	)			(409	)			(37	)
Net Increase (Decrease)		187				(357	)				29			10,082			(25	)			(9	)			155				163				97				(12	)
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	13,636		$		6,321		$			131		$	228,844		$	706		$		1,147		$		9,217		$		9,439		$		17,907		$		4,658
Reinvested		300				9,585					3			65,902			92				154				825				1,258				2,375				1
Redeemed		(3,438	)			(15,454	)				(13	)		(193,042	)		(243	)			(604	)			(3,169	)			(5,298	)			(8,260	)			(603	)
Net Increase (Decrease)	$	10,498		$		452		$			121		$	101,704		$	555		$		697		$		6,873		$		5,399		$		12,022		$		4,056
Shares:
Sold		696				338					7			11,430			37				61				492				504				930				232
Reinvested		16				530					–			3,434			5				8				46				69				131				–
Redeemed		(174	)			(831	)				(1	)		(9,523	)		(13	)			(32	)			(170	)			(286	)			(442	)			(31	)
Net Increase (Decrease)		538				37					6			5,341			29				37				368				287				619				201

Distributions:
Year Ended October 31, 2016
From net investment income $		(117			) $	(993)			$		(8)		$	(10,768)		$	(9)			$	(14)			$	(132)			$	(177)			$	(291)			$	(46)
From net realized gain on
investments		(324	)			(2,607	)				(4	)		(20,972	)		(39	)			(55	)			(400	)			(463	)			(695	)			(91	)
Total Dividends and Distributions $		(441)			$	(3,600)			$		(12)			$(31,740	)	$	(48)			$	(69)			$	(532)			$	(640)			$	(986)			$	(137	)
Year Ended October 31, 2015^(a)
From net investment income $		(41			) $	(1,072)			$		–			$(9,808	)	$	(8)			$	(13)			$	(91)			$	(155)			$	(319)			$	–
From net realized gain on
investments		(264	)			(8,513	)				(3	)		(56,179	)		(84	)			(141	)			(734	)			(1,103	)			(2,056	)			(1	)
Total Dividends and Distributions $		(305			) $	(9,585)			$		(3)			$(65,987	)	$	(92)			$	(154)			$	(825)			$	(1,258)			$	(2,375)			$	(1	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																					Money Market Fund
																					Year Ended			Year Ended
																					October 31, 2016			October 31, 2015
Operations
Net investment income (loss)																				$	93			$	–
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																					54				21
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																					–				–
					Net Increase (Decrease) in Net Assets Resulting from Operations																147				21

Dividends and Distributions to Shareholders
From net investment income																					(93	)			–
																		Total Dividends and Distributions			(93	)			–

Capital Share Transactions
Net increase (decrease) in capital share transactions																					(260,437	)			(79,529	)
														Total Increase (Decrease) in Net Assets							(260,383	)			(79,508	)

Net Assets
Beginning of period																					1,000,215			1,079,723
End of period (including undistributed net investment income as set forth below)																				$	739,832		$	1,000,215
Undistributed (overdistributed) net investment income (loss)																				$	54			$	–

			Class A	Class B^(a)					Class C					Class J			Institutional
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	484,427			N/A		$		29,020		$	152,393				$	139,814
Reinvested			–		N/A				–					–				82
Redeemed			(498,910	)	N/A				(29,056	)				(138,315	)		(399,892		)
Net Increase (Decrease)	$	(14,483		)	N/A		$		(36	)			$	14,078		$	(259,996		)
Shares:
Sold			484,425		N/A				29,021					152,393			139,814
Reinvested			–		N/A				–					–				82
Redeemed			(498,910	)	N/A				(29,056	)				(138,314	)		(399,892		)
Net Increase (Decrease)			(14,485	)	N/A				(35	)				14,079			(259,996		)
Year Ended October 31, 2015
Dollars:
Sold	$	606,436		$	308		$		20,175		$	153,936				$	279,433
Redeemed			(611,590	)	(3,650	)			(18,257	)				(149,621	)		(356,699		)
Net Increase (Decrease)		$	(5,154	) $	(3,342)			$	1,918			$		4,315		$	(77,266		)
Shares:
Sold			606,435		308				20,175					153,936			279,433
Redeemed			(611,590	)	(3,649	)			(18,257	)				(149,621	)		(356,699		)
Net Increase (Decrease)			(5,155	)	(3,341	)			1,918					4,315			(77,266		)

Distributions:
Year Ended October 31, 2016
From net investment income $			–		N/A		$		–			$		–			$	(93	)
From net realized gain on
investments			–		N/A				–					–				–
Total Dividends and Distributions $			–		N/A $				– $					–			$	(93	)
Year Ended October 31, 2015
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																								Overseas Fund
																								Year Ended		Year Ended
																								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																							$	57,116		$	50,160
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																								(52,584	)		64,407
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																								(95,763	)		(243,014	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																			(91,231	)		(128,447	)

Dividends and Distributions to Shareholders
From net investment income																								(49,221	)		(68,005	)
From net realized gain on investments																								(50,581	)		(123,162	)
																	Total Dividends and Distributions							(99,802	)		(191,167	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																								617,833			413,990
													Total Increase (Decrease) in Net Assets											426,800			94,376

Net Assets
Beginning of period																								2,655,344			2,560,968
End of period (including undistributed net investment income as set forth below)																							$	3,082,144		$	2,655,344
Undistributed (overdistributed) net investment income (loss)																							$	54,580		$	42,825
		Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	792,606		$	10		$		2		$		103		$		125		$		71
Reinvested		99,758			–				–				10				16				18
Redeemed		(274,746	)		–				–				(53	)			(25	)			(62	)
Net Increase (Decrease)	$	617,618		$	10		$		2		$		60		$		116		$		27
Shares:
Sold		85,965			1				–				10				14				9
Reinvested		10,451			–				–				1				2				2
Redeemed		(29,645	)		–				–				(5	)			(3	)			(7	)
Net Increase (Decrease)		66,771			1				–				6				13				4
Year Ended October 31, 2015
Dollars:
Sold	$	579,730		$	–		$		1		$		80		$		24		$		71
Reinvested		191,075			1				1				17				32				39
Redeemed		(356,937	)		–				–				(33	)			(22	)			(89	)
Net Increase (Decrease)	$	413,868		$	1		$		2		$		64		$		34		$		21
Shares:
Sold		53,135			–				–				7				2				7
Reinvested		18,200			–				–				2				3				3
Redeemed		(32,828	)		–				–				(3	)			(2	)			(8	)
Net Increase (Decrease)		38,507			–				–				6				3				2

Distributions:
Year Ended October 31, 2016
From net investment income		$ (49,202)		$	–		$		–		$		(4)			$	(7)			$	(8	)
From net realized gain on
investments		(50,556	)		–				–				(6	)			(9	)			(10	)
Total Dividends and Distributions		$ (99,758)		$	– $				– $				(10)			$	(16)			$	(18	)
Year Ended October 31, 2015
From net investment income		$ (67,977)		$	–		$		–		$		(5			) $	(10)			$	(13	)
From net realized gain on
investments		(123,100	)		(1	)			(1	)			(12	)			(22	)			(26	)
Total Dividends and Distributions		$ (191,077)		$	(1)			$	(1)			$	(17)			$	(32)			$	(39	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												Principal Capital Appreciation Fund
																												Year Ended								Year Ended
																												October 31, 2016								October 31, 2015
Operations
Net investment income (loss)																												$				33,366				$		34,250
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																														244,368								139,501
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														(225,461			)					(42,417	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																										52,273						131,334

Dividends and Distributions to Shareholders
From net investment income																																(35,363	)					(27,638	)
From net realized gain on investments																														(103,144			)					(93,612	)
																	Total Dividends and Distributions													(138,507			)					(121,250	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																																(90,663	)					135,200
														Total Increase (Decrease) in Net Assets																(176,897			)					145,284

Net Assets
Beginning of period																														2,637,509								2,492,225
End of period (including undistributed net investment income as set forth below)																												$		2,460,612						$		2,637,509
Undistributed (overdistributed) net investment income (loss)																												$				25,727				$		28,230
		Class A			Class B^(a)					Class C				Class P			Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	43,915				N/A		$		8,202		$		6,436		$	65,583		$	370		$		1,246		$		3,629		$		2,524		$		6,842
Reinvested		46,595				N/A				2,636				1,730			80,281			209				172				1,718				1,153				2,870
Redeemed		(115,065	)			N/A				(10,385	)			(11,269	)		(199,337	)		(1,782	)			(1,700	)			(9,494	)			(5,120	)			(12,622	)
Net Increase (Decrease)	$	(24,555	)			N/A		$		453		$		(3,103)			$ (53,473)		$	(1,203)			$	(282)			$	(4,147)			$	(1,443)			$	(2,910	)
Shares:
Sold		784				N/A				179				113			1,146			7				22				64				44				118
Reinvested		832				N/A				58				30			1,412			4				3				31				21				51
Redeemed		(2,032	)			N/A				(227	)			(197	)		(3,460	)		(32	)			(30	)			(167	)			(90	)			(224	)
Net Increase (Decrease)		(416	)			N/A				10				(54	)		(902	)		(21	)			(5	)			(72	)			(25	)			(55	)
Year Ended October 31, 2015
Dollars:
Sold	$	76,728			$	64		$		10,822		$		10,731		$	245,276		$	657		$		673		$		5,010		$		4,452		$		7,660
Issued in acquisitions		113,691				–				–				–			346,764			2,734				2,412				13,768				11,753				17,498
Reinvested		37,350				881				2,060				1,347			74,586			71				94				1,115				731				1,727
Redeemed		(110,173	)			(21,520	)			(7,178	)			(9,891	)		(676,905	)		(793	)			(1,505	)			(9,145	)			(8,932	)			(9,413	)
Net Increase (Decrease)	$	117,596		$		(20,575)			$	5,704		$		2,187		$	(10,279	)	$	2,669		$		1,674		$		10,748		$		8,004		$		17,472
Shares:
Sold		1,308				1				223				186			4,049			11				12				85				75				133
Issued in acquisitions		1,896				–				–				–			5,702			46				40				230				195				289
Reinvested		657				19				44				23			1,291			1				2				20				13				30
Redeemed		(1,893	)			(436	)			(149	)			(170	)		(11,369	)		(14	)			(26	)			(156	)			(155	)			(159	)
Net Increase (Decrease)		1,968				(416	)			118				39			(327	)		44				28				179				128				293

Distributions:
Year Ended October 31, 2016
From net investment income		$ (10,765)				N/A		$		(367			) $	(471)			$ (22,362)		$	(37)			$	(34)			$	(351)			$	(259)			$	(717	)
From net realized gain on
investments		(36,737	)			N/A				(2,362	)			(1,330	)		(57,981	)		(172	)			(148	)			(1,367	)			(894	)			(2,153	)
Total Dividends and Distributions		$ (47,502)				N/A		$		(2,729)			$	(1,801)			$ (80,343)		$	(209)			$	(182)			$	(1,718)			$	(1,153)			$	(2,870	)
Year Ended October 31, 2015
From net investment income		$ (7,551)		$		(7)			$	(181)			$	(358)			$ (18,820)		$	(7)			$	(11)			$	(188)			$	(149)			$	(366	)
From net realized gain on
investments		(30,745	)			(898	)			(1,972	)			(1,167)			(55,813)			(64	)			(83	)			(927	)			(582	)			(1,361	)
Total Dividends and Distributions		$ (38,296)			$	(905)			$	(2,153)			$	(1,525)			$ (74,633)		$	(71)			$	(94)			$	(1,115)			$	(731)			$	(1,727	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				Principal LifeTime 2010 Fund
																				Year Ended				Year Ended
																				October 31, 2016				October 31, 2015
Operations
Net investment income (loss)																				$		23,348		$	32,963
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																						31,776			94,814
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																						(18,106	)		(118,596	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																		37,018			9,181

Dividends and Distributions to Shareholders
From net investment income																						(23,573	)		(32,009	)
From net realized gain on investments																						(39,912	)		–
												Total Dividends and Distributions										(63,485	)		(32,009	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																						(136,728	)		(264,638	)
										Total Increase (Decrease) in Net Assets												(163,195	)		(287,466	)

Net Assets
Beginning of period																						1,380,415			1,667,881
End of period (including undistributed net investment income as set forth below)																				$		1,217,220		$	1,380,415
Undistributed (overdistributed) net investment income (loss)																				$		11,215		$	11,440

		Class A		Class J			Institutional			R-1		R-2		R-3			R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	7,066	$	27,625		$	54,340		$	843	$	1,234	$	7,104	$		3,048	$		12,607
Reinvested		1,845		11,343			41,177			465		459		2,509			1,652			3,999
Redeemed		(16,242	)	(38,136	)		(182,282	)		(5,637	)	(5,151	)	(22,091	)		(12,353	)		(32,152	)
Net Increase (Decrease)	$	(7,331	) $	832		$	(86,765	)	$	(4,329	) $	(3,458)		$ (12,478)		$	(7,653)		$	(15,546)
Shares:
Sold		539		2,141			4,203			67		96		552			235			985
Reinvested		144		891			3,221			36		36		198			130			314
Redeemed		(1,264	)	(2,952	)		(14,035	)		(438	)	(396	)	(1,699	)		(963	)		(2,480	)
Net Increase (Decrease)		(581	)	80			(6,611	)		(335	)	(264	)	(949	)		(598	)		(1,181	)
Year Ended October 31, 2015
Dollars:
Sold	$	5,419	$	31,191		$	54,824		$	972	$	1,549	$	10,014	$		7,063	$		18,368
Reinvested		765		4,865			21,810			184		189		1,159			909			2,116
Redeemed		(6,033	)	(38,386	)		(287,101	)		(3,826	)	(5,198	)	(20,673	)		(28,275	)		(36,543	)
Net Increase (Decrease)	$	151	$	(2,330)			$ (210,467)		$	(2,670	) $	(3,460	) $	(9,500)			$ (20,303)		$	(16,059)
Shares:
Sold		394		2,297			4,027			71		114		742			523			1,358
Reinvested		57		363			1,623			14		14		87			68			158
Redeemed		(441	)	(2,833	)		(21,078	)		(282	)	(385	)	(1,532	)		(2,093	)		(2,698	)
Net Increase (Decrease)		10		(173	)		(15,428	)		(197	)	(257	)	(703	)		(1,502	)		(1,182	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(625	) $	(4,028)			$ (16,027)		$	(111	) $	(119	) $	(747	) $		(536	) $		(1,380	)
From net realized gain on
investments		(1,240	)	(7,331	)		(25,150	)		(354	)	(340	)	(1,762	)		(1,116	)		(2,619	)
Total Dividends and Distributions $		(1,865)		$ (11,359)			$ (41,177)		$	(465	) $	(459	) $	(2,509	) $		(1,652	) $		(3,999	)
Year Ended October 31, 2015
From net investment income $		(770	) $	(4,872)			$ (21,810)		$	(184	) $	(189	) $	(1,159	) $		(909	) $		(2,116	)
From net realized gain on
investments		–		–			–			–		–		–			–			–
Total Dividends and Distributions $		(770	) $	(4,872)			$ (21,810)		$	(184	) $	(189	) $	(1,159	) $		(909	) $		(2,116	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																		Principal LifeTime 2015 Fund
																		Year Ended		Year Ended
																		October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																	$	13,840		$	20,892
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																		15,728			74,041
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																		(8,305	)		(89,493	)
							Net Increase (Decrease) in Net Assets Resulting from Operations											21,263			5,440

Dividends and Distributions to Shareholders
From net investment income																		(13,464	)		(20,329	)
From net realized gain on investments																		(52,726	)		(28,156	)
													Total Dividends and Distributions					(66,190	)		(48,485	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																		(26,581	)		(246,661	)
											Total Increase (Decrease) in Net Assets							(71,508	)		(289,706	)

Net Assets
Beginning of period																		831,826			1,121,532
End of period (including undistributed net investment income as set forth below)																	$	760,318		$	831,826
Undistributed (overdistributed) net investment income (loss)																	$	6,032		$	5,663

		Institutional					R-1		R-2		R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold		$	55,460		$		983	$	1,125	$	8,682	$	9,511	$	16,327
Reinvested			47,947				700		855		6,782		4,064		5,842
Redeemed		(110,578		)			(3,336	)	(5,239	)	(24,406	)	(18,906	)	(22,394	)
Net Increase (Decrease)		$	(7,171	)	$		(1,653	) $	(3,259	) $	(8,942	) $	(5,331	) $	(225	)
Shares:
Sold			5,595				102		117		879		962		1,646
Reinvested			4,874				73		89		705		419		601
Redeemed			(11,069	)			(340	)	(532	)	(2,514	)	(1,917	)	(2,303	)
Net Increase (Decrease)			(600	)			(165	)	(326	)	(930	)	(536	)	(56	)
Year Ended October 31, 2015
Dollars:
Sold		$	97,299		$		1,417	$	3,270	$	17,263	$	13,531	$	11,290
Reinvested			34,246				651		670		4,721		3,288		4,909
Redeemed		(351,297		)			(4,699	)	(5,679	)	(21,387	)	(26,739	)	(29,415	)
Net Increase (Decrease)	$	(219,752)				$	(2,631	) $	(1,739	) $	597	$	(9,920)		$ (13,216)
Shares:
Sold			8,954				133		305		1,610		1,250		1,046
Reinvested			3,177				62		63		446		309		460
Redeemed			(31,464	)			(441	)	(534	)	(1,990	)	(2,469	)	(2,741	)
Net Increase (Decrease)			(19,333	)			(246	)	(166	)	66		(910	)	(1,235	)

Distributions:
Year Ended October 31, 2016
From net investment income		$	(10,386)		$		(70	) $	(106	) $	(1,082	) $	(714	) $	(1,106	)
From net realized gain on
investments			(37,561	)			(630	)	(749	)	(5,700	)	(3,350	)	(4,736	)
Total Dividends and Distributions		$	(47,947)		$		(700	) $	(855	) $	(6,782	) $	(4,064	) $	(5,842	)
Year Ended October 31, 2015
From net investment income		$	(14,860)		$		(207	) $	(229	) $	(1,757	) $	(1,278	) $	(1,998	)
From net realized gain on
investments			(19,386	)			(444	)	(441	)	(2,964	)	(2,010	)	(2,911	)
Total Dividends and Distributions		$	(34,246)		$		(651	) $	(670	) $	(4,721	) $	(3,288	) $	(4,909	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																										Principal LifeTime 2020 Fund
																										Year Ended							Year Ended
																										October 31, 2016							October 31, 2015
Operations
Net investment income (loss)																										$		103,549					$	169,382
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												124,665						433,313
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																															(75,924	)		(551,635	)
							Net Increase (Decrease) in Net Assets Resulting from Operations																					152,290						51,060

Dividends and Distributions to Shareholders
From net investment income																															(98,417	)		(155,589	)
From net realized gain on investments																												(391,213				)		(224,960	)
																	Total Dividends and Distributions											(489,630				)		(380,549	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																															(54,278	)		(350,319	)
													Total Increase (Decrease) in Net Assets															(391,618				)		(679,808	)

Net Assets
Beginning of period																												6,242,033						6,921,841
End of period (including undistributed net investment income as set forth below)																										$		5,850,415					$	6,242,033
Undistributed (overdistributed) net investment income (loss)																										$					41,726		$	36,621

		Class A				Class B^(a)				Class J			Institutional				R-1			R-2			R-3			R-4					R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	17,377					N/A		$	108,532		$	228,454		$		4,256	$		6,588	$		27,764	$		34,813			$		54,728
Reinvested		9,785					N/A			70,393			332,443				3,272			4,077			20,794			14,877					33,507
Redeemed		(34,308	)				N/A			(130,878	)		(583,484	)			(11,458	)		(16,128	)		(73,660	)		(53,114	)				(122,908	)
Net Increase (Decrease)	$	(7,146	)				N/A		$	48,047		$	(22,587	)	$		(3,930)	$		(5,463)		$	(25,102)		$	(3,424)				$	(34,673)
Shares:
Sold		1,316					N/A			8,271			17,449				329			506			2,117			2,661					4,242
Reinvested		751					N/A			5,457			25,634				255			318			1,621			1,156					2,597
Redeemed		(2,668	)				N/A			(10,029	)		(44,063	)			(880	)		(1,228	)		(5,665	)		(4,123	)				(9,378	)
Net Increase (Decrease)		(601	)				N/A			3,699			(980	)			(296	)		(404	)		(1,927	)		(306	)				(2,539	)
Year Ended October 31, 2015
Dollars:
Sold	$	22,395		$			20		$	141,417		$	326,478		$		5,259	$		8,088	$		40,163	$		36,897			$		79,201
Reinvested		6,852					145			50,436			258,319				2,764			3,743			16,679			13,500					27,767
Redeemed		(16,872	)				(3,404	)		(125,156	)		(912,935	)			(11,564	)		(27,312	)		(81,218	)		(90,050	)				(121,931	)
Net Increase (Decrease)	$	12,375		$			(3,239)			$ 66,697		$	(328,138)			$	(3,541)		$	(15,481)		$	(24,376)		$	(39,653)				$	(14,963)
Shares:
Sold		1,551					1			9,860			22,699				365			565			2,818			2,561					5,520
Reinvested		480					10			3,570			18,196				196			267			1,186			958					1,966
Redeemed		(1,171	)				(229	)		(8,755	)		(62,626	)			(812	)		(1,927	)		(5,660	)		(6,321	)				(8,546	)
Net Increase (Decrease)		860					(218	)		4,675			(21,731	)			(251	)		(1,095	)		(1,656	)		(2,802	)				(1,060	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(1,779	)				N/A		$	(13,154)		$	(70,930)		$		(356)	$		(482)	$		(3,136)	$		(2,522)			$		(6,058	)
From net realized gain on
investments		(8,473	)				N/A			(57,250	)		(261,513	)			(2,916	)		(3,599	)		(17,658	)		(12,355	)				(27,449	)
Total Dividends and Distributions	$	(10,252)					N/A		$	(70,404)		$	(332,443)			$	(3,272)	$		(4,081)		$	(20,794)	$		(14,877)			$		(33,507)
Year Ended October 31, 2015
From net investment income $		(2,752)			$		(38)		$	(19,779)		$	(108,767)			$	(887)	$		(1,242)	$		(6,010)	$		(4,932)				$	(11,182)
From net realized gain on
investments		(4,417	)				(107	)		(30,681	)		(149,553	)			(1,877	)		(2,503	)		(10,669	)		(8,568	)				(16,585	)
Total Dividends and Distributions $		(7,169)			$		(145)		$	(50,460)		$	(258,320)			$	(2,764)	$		(3,745)		$	(16,679)		$	(13,500)				$	(27,767)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																									Principal LifeTime 2025 Fund
																									Year Ended		Year Ended
																									October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																								$	25,237		$	39,472
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																									30,034			123,933
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																									(14,511	)		(149,767	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																			40,760			13,638

Dividends and Distributions to Shareholders
From net investment income																									(23,573	)		(37,291	)
From net realized gain on investments																									(102,905	)		(48,007	)
																	Total Dividends and Distributions								(126,478	)		(85,298	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																									221,625			(172,798	)
													Total Increase (Decrease) in Net Assets												135,907			(244,458	)

Net Assets
Beginning of period																									1,556,895			1,801,353
End of period (including undistributed net investment income as set forth below)																								$	1,692,802		$	1,556,895
Undistributed (overdistributed) net investment income (loss)																								$	8,974		$	7,315

		Institutional				R-1		R-2					R-3				R-4					R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	186,839		$		2,092	$	3,864		$			30,459		$		29,582		$			36,114
Reinvested		93,682				1,185		1,579					13,679				6,259					10,094
Redeemed		(110,683	)			(4,182	)	(6,919	)				(34,196	)			(16,139	)				(21,684	)
Net Increase (Decrease)	$	169,838		$		(905)	$	(1,476)			$		9,942		$		19,702		$			24,524
Shares:
Sold		18,241				208		382					3,003				2,891					3,551
Reinvested		9,201				119		159					1,370				621					998
Redeemed		(10,720	)			(412	)	(686	)				(3,386	)			(1,573	)				(2,148	)
Net Increase (Decrease)		16,722				(85	)	(145	)				987				1,939					2,401
Year Ended October 31, 2015
Dollars:
Sold	$	259,180		$		3,154	$	6,032		$			36,824		$		19,806		$			29,069
Reinvested		60,784				1,000		1,119					9,150				4,939					8,306
Redeemed		(497,356	)			(4,741	)	(6,214	)				(26,515	)			(29,057	)				(48,278	)
Net Increase (Decrease)	$	(177,392)			$	(587)	$	937		$			19,459		$		(4,312)				$	(10,903)
Shares:
Sold		22,903				282		542					3,307				1,757					2,581
Reinvested		5,438				91		102					832				446					747
Redeemed		(42,548	)			(429	)	(561	)				(2,365	)			(2,576	)				(4,301	)
Net Increase (Decrease)		(14,207	)			(56	)	83					1,774				(373	)				(973	)

Distributions:
Year Ended October 31, 2016
From net investment income	$	(18,629)		$		(110)	$	(188)			$		(1,945)			$	(981			) $		(1,720	)
From net realized gain on
investments		(75,053	)			(1,075	)	(1,391)					(11,734	)			(5,278	)				(8,374	)
Total Dividends and Distributions	$	(93,682)		$		(1,185)	$	(1,579)				$	(13,679)	$			(6,259)			$		(10,094)
Year Ended October 31, 2015
From net investment income	$	(27,293)		$		(365)	$	(415)			$		(3,637)			$	(2,041)			$		(3,540	)
From net realized gain on
investments		(33,491)				(635	)	(704	)				(5,513	)			(2,898	)				(4,766	)
Total Dividends and Distributions	$	(60,784)		$		(1,000)	$	(1,119)			$		(9,150)			$	(4,939			) $		(8,306	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								Principal LifeTime 2030 Fund
																								Year Ended						Year Ended
																								October 31, 2016						October 31, 2015
Operations
Net investment income (loss)																								$		103,466				$	179,033
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																										166,696					491,051
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																										(145,063			)		(597,161	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																				125,099					72,923

Dividends and Distributions to Shareholders
From net investment income																												(98,630	)		(169,600	)
From net realized gain on investments																										(467,060			)		(256,037	)
															Total Dividends and Distributions											(565,690			)		(425,637	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																										322,588					111,425
												Total Increase (Decrease) in Net Assets														(118,003			)		(241,289	)

Net Assets
Beginning of period																										6,695,383					6,936,672
End of period (including undistributed net investment income as set forth below)																								$		6,577,380				$	6,695,383
Undistributed (overdistributed) net investment income (loss)																								$				29,441		$	24,650

		Class A				Class B^(a)			Class J			Institutional			R-1		R-2			R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	23,216				N/A		$	125,927		$	390,889		$	3,794	$	6,686	$		36,647		$		32,732			$	68,029
Reinvested		10,076				N/A			87,462			389,304			3,085		4,269			20,010				16,041				35,053
Redeemed		(32,505	)			N/A			(123,301	)		(514,828	)		(10,761	)	(18,458	)		(56,163	)			(51,103	)			(123,513	)
Net Increase (Decrease)	$	787				N/A		$	90,088		$	265,365		$	(3,882	) $	(7,503	) $		494		$		(2,330)			$	(20,431)
Shares:
Sold		1,758				N/A			9,556			29,732			292		510			2,778				2,411				5,212
Reinvested		769				N/A			6,708			29,749			238		329			1,538				1,196				2,684
Redeemed		(2,498	)			N/A			(9,367	)		(38,448	)		(822	)	(1,371	)		(4,253	)			(3,801	)			(9,317	)
Net Increase (Decrease)		29				N/A			6,897			21,033			(292	)	(532	)		63				(194	)			(1,421	)
Year Ended October 31, 2015
Dollars:
Sold	$	23,703		$		11		$	160,804		$	457,116		$	5,798	$	8,384	$		37,800		$		37,797			$	85,972
Reinvested		6,976				197			62,802			289,917			2,667		3,987			16,254				14,075				28,497
Redeemed		(15,060	)			(3,886	)		(125,239	)		(695,569	)		(10,662	)	(22,337	)		(66,113	)			(82,351	)			(110,115	)
Net Increase (Decrease)	$	15,619		$		(3,678)		$	98,367		$	51,464		$	(2,197	) $	(9,966)		$	(12,059)		$		(30,479)		$		4,534
Shares:
Sold		1,612				1			11,006			31,240			396		575			2,602				2,505				5,871
Reinvested		484				13			4,375			20,141			187		279			1,135				956				1,983
Redeemed		(1,023	)			(259	)		(8,596	)		(47,004	)		(743	)	(1,541	)		(4,514	)			(5,536	)			(7,573	)
Net Increase (Decrease)		1,073				(245	)		6,785			4,377			(160	)	(687	)		(777	)			(2,075	)			281

Distributions:
Year Ended October 31, 2016
From net investment income $		(1,555	)			N/A		$	(13,905)		$	(72,301)		$	(254	) $	(403)	$		(2,516)			$	(2,316)			$	(5,380	)
From net realized gain on
investments		(8,883	)			N/A			(73,580	)		(317,003)			(2,831)		(3,871)			(17,494)				(13,725	)			(29,673	)
Total Dividends and Distributions	$	(10,438)				N/A		$	(87,485)			$ (389,304)		$	(3,085	) $	(4,274)		$	(20,010)			$	(16,041)			$	(35,053)
Year Ended October 31, 2015
From net investment income $		(2,707)			$	(56)		$	(24,003)		$	(118,734)		$	(860)	$	(1,303)	$		(5,737)			$	(4,955)			$	(11,245)
From net realized gain on
investments		(4,519	)			(143	)		(38,807	)		(171,183	)		(1,807	)	(2,689	)		(10,517	)			(9,120	)			(17,252	)
Total Dividends and Distributions $		(7,226)			$	(199)		$	(62,810)		$	(289,917)		$	(2,667	) $	(3,992)		$	(16,254)		$		(14,075)			$	(28,497)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																								Principal LifeTime 2035 Fund
																								Year Ended		Year Ended
																								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																							$	16,900		$	27,919
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																								38,228			58,144
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																								(38,901	)		(71,332	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																			16,227			14,731

Dividends and Distributions to Shareholders
From net investment income																								(16,218	)		(27,639	)
From net realized gain on investments																								(45,939	)		(41,527	)
																	Total Dividends and Distributions							(62,157	)		(69,166	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																								137,226			(24,169	)
													Total Increase (Decrease) in Net Assets											91,296			(78,604	)

Net Assets
Beginning of period																								1,198,607			1,277,211
End of period (including undistributed net investment income as set forth below)																							$	1,289,903		$	1,198,607
Undistributed (overdistributed) net investment income (loss)																							$	3,089		$	2,415

		Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	149,510		$	2,389		$		2,702		$		21,557		$		21,274		$		25,071
Reinvested		47,072			570				699				5,665				3,130				5,021
Redeemed		(78,301	)		(2,539	)			(4,684	)			(27,900	)			(17,002	)			(17,008	)
Net Increase (Decrease)	$	118,281		$	420		$		(1,283)			$	(678)			$	7,402		$		13,084
Shares:
Sold		13,939			226				254				2,025				1,983				2,335
Reinvested		4,354			54				66				531				292				467
Redeemed		(7,156	)		(241	)			(440	)			(2,620	)			(1,563	)			(1,581	)
Net Increase (Decrease)		11,137			39				(120	)			(64	)			712				1,221
Year Ended October 31, 2015
Dollars:
Sold	$	227,039		$	2,574		$		5,165		$		22,820		$		17,741		$		22,435
Reinvested		49,448			826				869				6,638				4,468				6,917
Redeemed		(311,448	)		(4,366	)			(4,985	)			(14,379	)			(23,236	)			(32,695	)
Net Increase (Decrease)	$	(34,961	)	$	(966)			$	1,049		$		15,079		$		(1,027)			$	(3,343	)
Shares:
Sold		19,481			225				450				1,980				1,522				1,932
Reinvested		4,311			73				77				587				393				606
Redeemed		(25,802	)		(380	)			(434	)			(1,244	)			(2,012	)			(2,831	)
Net Increase (Decrease)		(2,010	)		(82	)			93				1,323				(97	)			(293	)

Distributions:
Year Ended October 31, 2016
From net investment income	$	(13,042)		$	(76)			$	(114)			$	(1,104)			$	(685)			$	(1,197	)
From net realized gain on
investments		(34,030	)		(494	)			(585	)			(4,561	)			(2,445	)			(3,824	)
Total Dividends and Distributions	$	(47,072)		$	(570)			$	(699)			$	(5,665)			$	(3,130)			$	(5,021	)
Year Ended October 31, 2015
From net investment income	$	(20,337)		$	(265)			$	(291)			$	(2,372)			$	(1,686)			$	(2,688	)
From net realized gain on
investments		(29,111	)		(561	)			(578	)			(4,266	)			(2,782	)			(4,229	)
Total Dividends and Distributions	$	(49,448)		$	(826)			$	(869)			$	(6,638)			$	(4,468)			$	(6,917	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											Principal LifeTime 2040 Fund
																											Year Ended							Year Ended
																											October 31, 2016							October 31, 2015
Operations
Net investment income (loss)																											$					61,355		$	114,239
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																														160,470					220,560
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														(178,217			)		(277,215	)
							Net Increase (Decrease) in Net Assets Resulting from Operations																									43,608			57,584

Dividends and Distributions to Shareholders
From net investment income																																(59,284	)		(113,278	)
From net realized gain on investments																														(212,795			)		(172,816	)
																		Total Dividends and Distributions												(272,079			)		(286,094	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																														171,708					174,124
															Total Increase (Decrease) in Net Assets																	(56,763	)		(54,386	)

Net Assets
Beginning of period																														4,411,730					4,466,116
End of period (including undistributed net investment income as set forth below)																											$			4,354,967				$	4,411,730
Undistributed (overdistributed) net investment income (loss)																											$					8,822		$	6,753

		Class A				Class B^(a)						Class J			Institutional			R-1			R-2			R-3			R-4					R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	12,944					N/A			$		83,356		$	312,584		$	3,079	$		6,320	$		21,655	$		25,419			$		48,919
Reinvested		5,437					N/A					36,801			191,736			1,489			1,907			9,119			7,947					17,542
Redeemed		(19,719	)				N/A			(71,622			)		(351,709	)		(7,109	)		(11,156	)		(34,410	)		(32,559	)				(86,262	)
Net Increase (Decrease)	$	(1,338	)				N/A			$		48,535		$	152,611		$	(2,541	) $		(2,929	) $		(3,636	) $		807		$	(19,801			)
Shares:
Sold		951					N/A					6,066			22,622			226			459			1,586			1,850					3,581
Reinvested		399					N/A					2,678			13,836			109			139			667			580					1,273
Redeemed		(1,492	)				N/A					(5,227	)		(24,999	)		(514	)		(793	)		(2,501	)		(2,386	)				(6,162	)
Net Increase (Decrease)		(142	)				N/A					3,517			11,459			(179	)		(195	)		(248	)		44					(1,308	)
Year Ended October 31, 2015
Dollars:
Sold	$	17,457		$			–		$	107,726				$	339,995		$	3,658	$		6,120	$		28,503	$		33,432			$		63,728
Reinvested		5,327					176					37,083			198,779			2,018			2,930			10,433			9,678					19,569
Redeemed		(9,728	)				(3,266	)		(74,279			)		(435,957	)		(8,978	)		(20,271	)		(41,625	)		(53,963	)				(64,421	)
Net Increase (Decrease)	$	13,056		$			(3,090)				$	70,530		$	102,817		$	(3,302)		$	(11,221)		$	(2,689)		$	(10,853)			$		18,876
Shares:
Sold		1,170					–					7,176			22,504			244			409			1,912			2,217					4,226
Reinvested		364					12					2,517			13,392			137			200			711			659					1,324
Redeemed		(654	)				(217	)				(4,950	)		(28,535	)		(601	)		(1,366	)		(2,765	)		(3,632	)				(4,294	)
Net Increase (Decrease)		880					(205	)				4,743			7,361			(220	)		(757	)		(142	)		(756	)				1,256

Distributions:
Year Ended October 31, 2016
From net investment income $		(1,024	)				N/A			$		(7,123)		$	(44,577)		$	(135)	$		(207)	$		(1,410)	$		(1,442)				$	(3,366	)
From net realized gain on
investments		(4,495	)				N/A			(29,685			)		(147,159	)		(1,354	)		(1,712	)		(7,709	)		(6,505	)				(14,176	)
Total Dividends and Distributions $		(5,519	)				N/A		$	(36,808)				$	(191,736)		$	(1,489)	$		(1,919)	$		(9,119)	$		(7,947)				$	(17,542)
Year Ended October 31, 2015
From net investment income $		(2,023)			$		(50)		$			(13,994)			$ (80,805)		$	(646)	$		(964)	$		(3,689)	$		(3,391)				$	(7,716	)
From net realized gain on
investments		(3,393	)				(126	)		(23,094			)		(117,974	)		(1,372	)		(1,973	)		(6,744	)		(6,287	)				(11,853	)
Total Dividends and Distributions $		(5,416)			$		(176)			$		(37,088)		$	(198,779)		$	(2,018)	$		(2,937)		$	(10,433)		$	(9,678)				$	(19,569)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																							Principal LifeTime 2045 Fund
																							Year Ended		Year Ended
																							October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																						$	10,284		$	17,190
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																							27,610			31,681
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																							(28,543	)		(40,103	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																	9,351			8,768

Dividends and Distributions to Shareholders
From net investment income																							(9,793	)		(17,312	)
From net realized gain on investments																							(28,240	)		(24,728	)
																Total Dividends and Distributions							(38,033	)		(42,040	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																							133,712			41,635
												Total Increase (Decrease) in Net Assets											105,030			8,363

Net Assets
Beginning of period																							745,807			737,444
End of period (including undistributed net investment income as set forth below)																						$	850,837		$	745,807
Undistributed (overdistributed) net investment income (loss)																						$	1,209		$	718

		Institutional				R-1		R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	130,447			$	1,532	$	2,881		$		17,022		$		15,590		$		20,188
Reinvested			28,478			315		521				3,214				1,691				3,809
Redeemed			(50,561	)		(2,132	)	(4,430	)			(14,018	)			(10,153	)			(10,682	)
Net Increase (Decrease)	$	108,364			$	(285)	$	(1,028)			$	6,218		$		7,128		$		13,315
Shares:
Sold			11,908			144		269				1,579				1,432				1,866
Reinvested			2,577			29		49				297				155				349
Redeemed			(4,554	)		(198	)	(411	)			(1,303	)			(914	)			(971	)
Net Increase (Decrease)			9,931			(25	)	(93	)			573				673				1,244
Year Ended October 31, 2015
Dollars:
Sold	$	153,963			$	1,940	$	3,121		$		16,519		$		11,514		$		19,829
Reinvested			29,137			572		663				3,534				2,395				5,739
Redeemed		(149,957		)		(3,875	)	(2,724	)			(6,211	)			(13,725	)			(30,799	)
Net Increase (Decrease)		$	33,143		$	(1,363)	$	1,060		$		13,842		$		184		$		(5,231	)
Shares:
Sold			12,933			167		269				1,413				976				1,691
Reinvested			2,490			50		58				308				207				496
Redeemed			(12,201	)		(332	)	(235	)			(530	)			(1,183	)			(2,636	)
Net Increase (Decrease)			3,222			(115	)	92				1,191				–				(449	)

Distributions:
Year Ended October 31, 2016
From net investment income $			(7,798	)	$	(35)	$	(82)			$	(626)			$	(368)			$	(884	)
From net realized gain on
investments			(20,680	)		(280	)	(444	)			(2,588	)			(1,323	)			(2,925	)
Total Dividends and Distributions		$	(28,478)		$	(315)	$	(526)			$	(3,214)			$	(1,691)			$	(3,809	)
Year Ended October 31, 2015
From net investment income		$	(12,319)		$	(196)	$	(234)			$	(1,314)			$	(936			) $	(2,313	)
From net realized gain on
investments			(16,818	)		(376	)	(429	)			(2,220	)			(1,459	)			(3,426	)
Total Dividends and Distributions		$	(29,137)		$	(572)	$	(663)			$	(3,534)			$	(2,395)			$	(5,739	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											Principal LifeTime 2050 Fund
																											Year Ended						Year Ended
																											October 31, 2016						October 31, 2015
Operations
Net investment income (loss)																											$				30,761		$	57,723
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																															87,592			99,852
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																															(97,582	)		(127,882	)
						Net Increase (Decrease) in Net Assets Resulting from Operations																									20,771			29,693

Dividends and Distributions to Shareholders
From net investment income																															(29,751	)		(58,299	)
From net realized gain on investments																															(98,514	)		(85,679	)
																	Total Dividends and Distributions												(128,265			)		(143,978	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																													193,270					199,075
														Total Increase (Decrease) in Net Assets																	85,776			84,790

Net Assets
Beginning of period																													2,277,112					2,192,322
End of period (including undistributed net investment income as set forth below)																											$		2,362,888				$	2,277,112
Undistributed (overdistributed) net investment income (loss)																											$				2,915		$	1,907

		Class A				Class B^(a)					Class J			Institutional			R-1				R-2		R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	17,849				N/A			$		37,817		$	263,023		$	3,239		$		4,578	$	16,056		$		16,561		$		33,747
Reinvested		3,694				N/A					10,134			95,723			842				1,035		4,034				3,548				9,208
Redeemed		(21,439	)			N/A					(27,420	)		(182,929	)		(4,577	)			(6,714	)	(15,525	)			(19,201	)			(50,013	)
Net Increase (Decrease)	$	104				N/A			$		20,531		$	175,817		$	(496)			$	(1,101	) $	4,565		$		908		$		(7,058	)
Shares:
Sold		1,320				N/A					2,865			19,581			245				344		1,204				1,238				2,533
Reinvested		272				N/A					770			7,081			63				77		302				264				684
Redeemed		(1,616	)			N/A					(2,095	)		(13,345	)		(343	)			(493	)	(1,170	)			(1,423	)			(3,659	)
Net Increase (Decrease)		(24	)			N/A					1,540			13,317			(35	)			(72	)	336				79				(442	)
Year Ended October 31, 2015
Dollars:
Sold	$	16,619		$		–			$		47,214		$	238,002		$	3,496		$		4,312	$	16,304		$		21,461		$		47,659
Reinvested		3,923				52					10,688			105,458			1,112				1,875		4,963				4,621				11,238
Redeemed		(9,968	)			(969	)				(25,127	)		(193,924	)		(4,309	)			(12,902	)	(19,677	)			(28,992	)			(44,054	)
Net Increase (Decrease)	$	10,574		$		(917)				$	32,775		$	149,536		$	299		$		(6,715	) $	1,590		$		(2,910)			$	14,843
Shares:
Sold		1,131				–					3,293			16,236			240				296		1,123				1,458				3,269
Reinvested		271				4					761			7,327			78				132		349				323				784
Redeemed		(673	)			(66	)				(1,760	)		(13,117	)		(298	)			(905	)	(1,347	)			(2,011	)			(3,018	)
Net Increase (Decrease)		729				(62	)				2,294			10,446			20				(477	)	125				(230	)			1,035

Distributions:
Year Ended October 31, 2016
From net investment income $		(733	)			N/A			$		(1,945)			$ (23,634)		$	(88)			$	(117	) $	(669)			$	(688)			$	(1,877	)
From net realized gain on
investments		(3,000	)			N/A					(8,192	)		(72,089	)		(754	)			(923	)	(3,365	)			(2,860	)			(7,331	)
Total Dividends and Distributions $		(3,733	)			N/A		$	(10,137)					$ (95,723)		$	(842)			$	(1,040	) $	(4,034)			$	(3,548)			$	(9,208	)
Year Ended October 31, 2015
From net investment income $		(1,512)			$	(15)				$	(4,048)			$ (43,718)		$	(371)			$	(643	) $	(1,809)			$	(1,612)			$	(4,571	)
From net realized gain on
investments		(2,446	)			(37	)				(6,649	)		(61,740	)		(741	)			(1,236	)	(3,154	)			(3,009	)			(6,667	)
Total Dividends and Distributions $		(3,958)			$	(52) $					(10,697) $			(105,458) $			(1,112)			$	(1,879	) $	(4,963)			$	(4,621)				$ (11,238)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																Principal LifeTime 2055 Fund
																Year Ended		Year Ended
																October 31, 2016		October 31, 2015
Operations
Net investment income (loss)															$	3,079		$	4,384
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																8,440			6,897
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																(7,649	)		(9,287	)
					Net Increase (Decrease) in Net Assets Resulting from Operations											3,870			1,994

Dividends and Distributions to Shareholders
From net investment income																(2,917	)		(4,445	)
From net realized gain on investments																(6,784	)		(4,967	)
											Total Dividends and Distributions					(9,701	)		(9,412	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																88,735			58,336
									Total Increase (Decrease) in Net Assets							82,904			50,918

Net Assets
Beginning of period																222,384			171,466
End of period (including undistributed net investment income as set forth below)															$	305,288		$	222,384
Undistributed (overdistributed) net investment income (loss)															$	236		$	74

	Institutional				R-1		R-2		R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	75,619		$	1,155	$	1,349	$	8,093	$	7,135	$	10,389
Reinvested		7,538			80		94		683		480		826
Redeemed		(14,101	)		(701	)	(1,026	)	(2,992	)	(3,678	)	(2,208	)
Net Increase (Decrease)	$	69,056		$	534	$	417	$	5,784	$	3,937	$	9,007
Shares:
Sold		6,696			105		123		729		642		927
Reinvested		661			7		8		61		43		73
Redeemed		(1,229	)		(62	)	(92	)	(275	)	(321	)	(195	)
Net Increase (Decrease)		6,128			50		39		515		364		805
Year Ended October 31, 2015
Dollars:
Sold	$	67,177		$	948	$	1,104	$	6,568	$	4,680	$	10,762
Reinvested		6,891			102		93		631		598		1,097
Redeemed		(26,155	)		(566	)	(473	)	(1,387	)	(3,388	)	(10,346	)
Net Increase (Decrease)	$	47,913		$	484	$	724	$	5,812	$	1,890	$	1,513
Shares:
Sold		5,521			79		93		551		388		895
Reinvested		577			9		8		54		51		93
Redeemed		(2,128	)		(48	)	(39	)	(116	)	(288	)	(858	)
Net Increase (Decrease)		3,970			40		62		489		151		130

Distributions:
Year Ended October 31, 2016
From net investment income $		(2,377	)	$	(13	) $	(19	) $	(161	) $	(123	) $	(224	)
From net realized gain on
investments		(5,161	)		(67	)	(75	)	(522	)	(357	)	(602	)
Total Dividends and Distributions $		(7,538	)	$	(80	) $	(94	) $	(683	) $	(480	) $	(826	)
Year Ended October 31, 2015
From net investment income $		(3,312	)	$	(41	) $	(39	) $	(274	) $	(269	) $	(510	)
From net realized gain on
investments		(3,579	)		(61	)	(54	)	(357	)	(329	)	(587	)
Total Dividends and Distributions $		(6,891	)	$	(102	) $	(93	) $	(631	) $	(598	) $	(1,097	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																		Principal LifeTime 2060 Fund
																		Year Ended		Year Ended
																		October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																	$	1,555		$	1,439
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																		3,934			2,055
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																		(3,483	)		(3,653	)
				Net Increase (Decrease) in Net Assets Resulting from Operations														2,006			(159	)

Dividends and Distributions to Shareholders
From net investment income																		(1,464	)		(1,425	)
From net realized gain on investments																		(2,084	)		(32	)
											Total Dividends and Distributions							(3,548	)		(1,457	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																		49,659			60,387
									Total Increase (Decrease) in Net Assets									48,117			58,771

Net Assets
Beginning of period																		107,408			48,637
End of period (including undistributed net investment income as set forth below)																	$	155,525		$	107,408
Undistributed (overdistributed) net investment income (loss)																	$	136		$	45
		Class J		Institutional			R-1		R-2		R-3		R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	2,672	$	55,352		$	669	$	584	$	2,435	$	2,842	$	4,809
Reinvested		137		2,956			16		17		110		108		204
Redeemed		(2,025	)	(14,041	)		(114	)	(343	)	(1,098	)	(1,582	)	(4,049	)
Net Increase (Decrease)	$	784	$	44,267		$	571	$	258	$	1,447	$	1,368	$	964
Shares:
Sold		232		4,745			58		51		212		245		415
Reinvested		12		252			2		2		9		9		17
Redeemed		(177	)	(1,192	)		(10	)	(30	)	(95	)	(141	)	(341	)
Net Increase (Decrease)		67		3,805			50		23		126		113		91
Year Ended October 31, 2015
Dollars:
Sold	$	3,699	$	61,952		$	457	$	655	$	3,582	$	3,557	$	5,033
Reinvested		58		1,200			5		7		46		40		101
Redeemed		(1,308	)	(13,447	)		(113	)	(198	)	(1,891	)	(1,879	)	(1,169	)
Net Increase (Decrease)	$	2,449	$	49,705		$	349	$	464	$	1,737	$	1,718	$	3,965
Shares:
Sold		292		5,000			36		53		291		288		408
Reinvested		5		99			1		1		4		4		9
Redeemed		(109	)	(1,101	)		(9	)	(17	)	(155	)	(153	)	(96	)
Net Increase (Decrease)		188		3,998			28		37		140		139		321

Distributions:
Year Ended October 31, 2016
From net investment income $		(51	) $	(1,251	)	$	(5	) $	(5	) $	(36	) $	(40	) $	(76	)
From net realized gain on
investments		(86	)	(1,705	)		(11	)	(12	)	(74	)	(68	)	(128	)
Total Dividends and Distributions $		(137	) $	(2,956	)	$	(16	) $	(17	) $	(110	) $	(108	) $	(204	)
Year Ended October 31, 2015
From net investment income $		(57	) $	(1,173	)	$	(5	) $	(7	) $	(45	) $	(39	) $	(99	)
From net realized gain on
investments		(1	)	(27	)		–		–		(1	)	(1	)	(2	)
Total Dividends and Distributions $		(58	) $	(1,200	)	$	(5	) $	(7	) $	(46	) $	(40	) $	(101	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands								Principal LifeTime Hybrid 2015 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	157		$	3
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								44			(2	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies								165			(31	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		366			(30	)

Dividends and Distributions to Shareholders
From net investment income								(119	)		–
From net realized gain on investments								(1	)		–
						Total Dividends and Distributions		(120	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								4,276			7,716
						Total Increase (Decrease) in Net Assets		4,522			7,686

Net Assets
Beginning of period								7,696			10
End of period (including undistributed net investment income as set forth below)							$	12,218		$	7,696
Undistributed (overdistributed) net investment income (loss)							$	41		$	3
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	6,365		$		–
Reinvested		120				–
Redeemed		(2,209	)			–
Net Increase (Decrease)	$	4,276		$		–
Shares:
Sold		645				–
Reinvested		12				–
Redeemed		(222	)			–
Net Increase (Decrease)		435				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	7,856		$		10
Redeemed		(150	)			–
Net Increase (Decrease)	$	7,706		$		10
Shares:
Sold		794				1
Redeemed		(16	)			–
Net Increase (Decrease)		778				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(119)			$	–
From net realized gain on
investments		(1	)			–
Total Dividends and Distributions $		(120)			$	–
Year Ended October 31, 2015^(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								Principal LifeTime Hybrid 2020 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	486		$	6
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								169			(16	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies								490			(72	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		1,145			(82	)

Dividends and Distributions to Shareholders
From net investment income								(382	)		–
						Total Dividends and Distributions		(382	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								19,341			23,520
						Total Increase (Decrease) in Net Assets		20,104			23,438

Net Assets
Beginning of period								23,448			10
End of period (including undistributed net investment income as set forth below)							$	43,552		$	23,448
Undistributed (overdistributed) net investment income (loss)							$	110		$	6
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	21,986		$		–
Reinvested		382				–
Redeemed		(3,027	)			–
Net Increase (Decrease)	$	19,341		$		–
Shares:
Sold		2,212				–
Reinvested		39				–
Redeemed		(304	)			–
Net Increase (Decrease)		1,947				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	24,528		$		10
Redeemed		(1,018	)			–
Net Increase (Decrease)	$	23,510		$		10
Shares:
Sold		2,463				1
Redeemed		(104	)			–
Net Increase (Decrease)		2,359				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(382)			$	–
From net realized gain on
investments		–				–
Total Dividends and Distributions $		(382)			$	–
Year Ended October 31, 2015^(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								Principal LifeTime Hybrid 2025 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	66		$	2
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								30			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								155			(28	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		251			(25	)

Dividends and Distributions to Shareholders
From net investment income								(50	)		–
From net realized gain on investments								(2	)		–
						Total Dividends and Distributions		(52	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								9,958			2,732
						Total Increase (Decrease) in Net Assets		10,157			2,707

Net Assets
Beginning of period								2,717			10
End of period (including undistributed net investment income as set forth below)							$	12,874		$	2,717
Undistributed (overdistributed) net investment income (loss)							$	18		$	2
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	11,383		$		–
Reinvested		52				–
Redeemed		(1,477	)			–
Net Increase (Decrease)	$	9,958		$		–
Shares:
Sold		1,141				–
Reinvested		5				–
Redeemed		(147	)			–
Net Increase (Decrease)		999				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	3,253		$		10
Redeemed		(531	)			–
Net Increase (Decrease)	$	2,722		$		10
Shares:
Sold		323				1
Redeemed		(52	)			–
Net Increase (Decrease)		271				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(50)			$	–
From net realized gain on
investments		(2	)			–
Total Dividends and Distributions $		(52)			$	–
Year Ended October 31, 2015^(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								Principal LifeTime Hybrid 2030 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	462		$	2
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								210			(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								295			(57	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		967			(56	)

Dividends and Distributions to Shareholders
From net investment income								(407	)		–
From net realized gain on investments								(1	)		–
						Total Dividends and Distributions		(408	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								20,112			25,165
						Total Increase (Decrease) in Net Assets		20,671			25,109

Net Assets
Beginning of period								25,119			10
End of period (including undistributed net investment income as set forth below)							$	45,790		$	25,119
Undistributed (overdistributed) net investment income (loss)							$	57		$	2
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	22,148		$		–
Reinvested		408				–
Redeemed		(2,444	)			–
Net Increase (Decrease)	$	20,112		$		–
Shares:
Sold		2,205				–
Reinvested		42				–
Redeemed		(253	)			–
Net Increase (Decrease)		1,994				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	25,763		$		10
Redeemed		(608	)			–
Net Increase (Decrease)	$	25,155		$		10
Shares:
Sold		2,572				1
Redeemed		(60	)			–
Net Increase (Decrease)		2,512				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(407)			$	–
From net realized gain on
investments		(1	)			–
Total Dividends and Distributions $		(408)			$	–
Year Ended October 31, 2015^(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								Principal LifeTime Hybrid 2035 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	60		$	1
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								40			–
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies								81			(32	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		181			(31	)

Dividends and Distributions to Shareholders
From net investment income								(55	)		–
						Total Dividends and Distributions		(55	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								6,530			3,247
						Total Increase (Decrease) in Net Assets		6,656			3,216

Net Assets
Beginning of period								3,226			10
End of period (including undistributed net investment income as set forth below)							$	9,882		$	3,226
Undistributed (overdistributed) net investment income (loss)							$	6		$	1
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	7,639		$		–
Reinvested		55				–
Redeemed		(1,164	)			–
Net Increase (Decrease)	$	6,530		$		–
Shares:
Sold		757				–
Reinvested		6				–
Redeemed		(114	)			–
Net Increase (Decrease)		649				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	3,290		$		10
Redeemed		(53	)			–
Net Increase (Decrease)	$	3,237		$		10
Shares:
Sold		325				1
Redeemed		(5	)			–
Net Increase (Decrease)		320				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(55)			$	–
From net realized gain on
investments		–				–
Total Dividends and Distributions $		(55)			$	–
Year Ended October 31, 2015^(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								Principal LifeTime Hybrid 2040 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	233		$	–
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								151			(8	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies								89			(38	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		473			(46	)

Dividends and Distributions to Shareholders
From net investment income								(217	)		–
From net realized gain on investments								(1	)		–
						Total Dividends and Distributions		(218	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								10,024			13,539
						Total Increase (Decrease) in Net Assets		10,279			13,493

Net Assets
Beginning of period								13,503			10
End of period (including undistributed net investment income as set forth below)							$	23,782		$	13,503
Undistributed (overdistributed) net investment income (loss)							$	16		$	–
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	11,266		$		–
Reinvested		218				–
Redeemed		(1,460	)			–
Net Increase (Decrease)	$	10,024		$		–
Shares:
Sold		1,109				–
Reinvested		23				–
Redeemed		(146	)			–
Net Increase (Decrease)		986				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	13,946		$		10
Redeemed		(417	)			–
Net Increase (Decrease)	$	13,529		$		10
Shares:
Sold		1,385				1
Redeemed		(42	)			–
Net Increase (Decrease)		1,343				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(217)			$	–
From net realized gain on
investments		(1	)			–
Total Dividends and Distributions $		(218)			$	–
Year Ended October 31, 2015^(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								Principal LifeTime Hybrid 2045 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	38		$	–
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								25			(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								–			(24	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		63			(25	)

Dividends and Distributions to Shareholders
From net investment income								(34	)		–
						Total Dividends and Distributions		(34	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								4,303			1,920
						Total Increase (Decrease) in Net Assets		4,332			1,895

Net Assets
Beginning of period								1,905			10
End of period (including undistributed net investment income as set forth below)							$	6,237		$	1,905
Undistributed (overdistributed) net investment income (loss)							$	4		$	–
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	4,497		$		–
Reinvested		34				–
Redeemed		(228	)			–
Net Increase (Decrease)	$	4,303		$		–
Shares:
Sold		441				–
Reinvested		3				–
Redeemed		(22	)			–
Net Increase (Decrease)		422				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	1,926		$		10
Redeemed		(16	)			–
Net Increase (Decrease)	$	1,910		$		10
Shares:
Sold		190				1
Redeemed		(2	)			–
Net Increase (Decrease)		188				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(34)			$	–
From net realized gain on
investments		–				–
Total Dividends and Distributions $		(34)			$	–
Year Ended October 31, 2015^(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						Principal LifeTime Hybrid 2050 Fund
						Year Ended		Year Ended
						October 31, 2016		October 31, 2015
Operations
Net investment income (loss)					$	131		$	1
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements						92			(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						64			(18	)
				Net Increase (Decrease) in Net Assets Resulting from Operations		287			(18	)

Dividends and Distributions to Shareholders
From net investment income						(122	)		(1	)
				Total Dividends and Distributions		(122	)		(1	)

Capital Share Transactions
Net increase (decrease) in capital share transactions						4,891			7,556
				Total Increase (Decrease) in Net Assets		5,056			7,537

Net Assets
Beginning of period						7,547			10
End of period (including undistributed net investment income as set forth below)					$	12,603		$	7,547
Undistributed (overdistributed) net investment income (loss)					$	9		$	–
		Institutional		R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	5,448	$	–
Reinvested		122		–
Redeemed		(679	)	–
Net Increase (Decrease)	$	4,891	$	–
Shares:
Sold		540		–
Reinvested		13		–
Redeemed		(69	)	–
Net Increase (Decrease)		484		–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	7,557	$	10
Redeemed		(11	)	–
Net Increase (Decrease)	$	7,546	$	10
Shares:
Sold		749		1
Redeemed		(1	)	–
Net Increase (Decrease)		748		1

Distributions:
Year Ended October 31, 2016
From net investment income $		(122	) $	–
From net realized gain on
investments		–		–
Total Dividends and Distributions $		(122	) $	–
Year Ended October 31, 2015^(a)
From net investment income $		(1	) $	–
From net realized gain on
investments		–		–
Total Dividends and Distributions $		(1	) $	–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in dollars								Principal LifeTime Hybrid 2055 Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	7,228		$	536
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								5,228			(384	)
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies								6,468			(4,151	)
					Net Increase (Decrease) in Net Assets Resulting from Operations			18,924			(3,999	)

Dividends and Distributions to Shareholders
From net investment income								(6,267	)		(467	)
From net realized gain on investments								(65	)		–
					Total Dividends and Distributions			(6,332	)		(467	)

Capital Share Transactions
Net increase (decrease) in capital share transactions								1,538,631			356,774
					Total Increase (Decrease) in Net Assets			1,551,223			352,308

Net Assets
Beginning of period								362,545			10,237
End of period (including undistributed net investment income as set forth below)							$	1,913,768		$	362,545
Undistributed (overdistributed) net investment income (loss)							$	1,031		$	70
		Institutional			R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	1,661,973		$	–
Reinvested			6,162		170
Redeemed		(129,674		)	–
Net Increase (Decrease)	$	1,538,461		$	170
Shares:
Sold			163,265		–
Reinvested			635		17
Redeemed			(12,696	)	–
Net Increase (Decrease)			151,204		17
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	367,869
Reinvested			467		$ 10,000–
Redeemed			(21,562	)	–
Net Increase (Decrease)	$	346,774			$ 10,000
Shares:
Sold			36,210		1,072
Reinvested			47		–
Redeemed			(2,285	)	–
Net Increase (Decrease)			33,972		1,072

Distributions:
Year Ended October 31, 2016
From net investment income $			(6,099	) $	(168	)
From net realized gain on
investments			(63	)	(2	)
Total Dividends and Distributions $			(6,162	)$	(170	)
Year Ended October 31, 2015^(a)
From net investment income $			(467	) $	–
From net realized gain on
investments			–		–
Total Dividends and Distributions $			(467	) $	–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in dollars										Principal LifeTime Hybrid 2060 Fund
										Year Ended		Year Ended
										October 31, 2016		October 31, 2015
Operations
Net investment income (loss)									$	2,680		$	477
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements										2,063			46
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies										12,125			593
							Net Increase (Decrease) in Net Assets Resulting from Operations			16,868			1,116

Dividends and Distributions to Shareholders
From net investment income										(2,328	)		(467	)
From net realized gain on investments										(49	)		–
							Total Dividends and Distributions			(2,377	)		(467	)

Capital Share Transactions
Net increase (decrease) in capital share transactions										296,568			129,073
							Total Increase (Decrease) in Net Assets			311,059			129,722

Net Assets
Beginning of period										139,959			10,237
End of period (including undistributed net investment income as set forth below)									$	451,018		$	139,959
Undistributed (overdistributed) net investment income (loss)									$	363		$	11
	Institutional						R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	326,648			$		–
Reinvested		2,205					172
Redeemed		(32,457	)				–
Net Increase (Decrease)	$	296,396			$		172
Shares:
Sold		33,143					–
Reinvested		227					17
Redeemed		(3,172	)				–
Net Increase (Decrease)		30,198					17
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	118,831		$	10,000
Reinvested		467					–
Redeemed		(225	)				–
Net Increase (Decrease)	$	119,073		$	10,000
Shares:
Sold		11,814					1,072
Reinvested		47					–
Redeemed		(22	)				–
Net Increase (Decrease)		11,839					1,072

Distributions:
Year Ended October 31, 2016
From net investment income $		(2,160)				$	(168	)
From net realized gain on
investments		(45	)				(4	)
Total Dividends and Distributions $		(2,205)				$	(172	)
Year Ended October 31, 2015^(a)
From net investment income $		(467)				$	–
From net realized gain on
investments		–					–
Total Dividends and Distributions $		(467)				$	–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



								Principal LifeTime
Amounts in thousands								Hybrid Income Fund
								Year Ended		Year Ended
								October 31, 2016		October 31, 2015
Operations
Net investment income (loss)							$	71		$	1
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements								5			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								37			(3	)
						Net Increase (Decrease) in Net Assets Resulting from Operations		113			(1	)

Dividends and Distributions to Shareholders
From net investment income								(41	)		–
From net realized gain on investments								(1	)		–
						Total Dividends and Distributions		(42	)		–

Capital Share Transactions
Net increase (decrease) in capital share transactions								5,899			2,805
						Total Increase (Decrease) in Net Assets		5,970			2,804

Net Assets
Beginning of period								2,814			10
End of period (including undistributed net investment income as set forth below)							$	8,784		$	2,814
Undistributed (overdistributed) net investment income (loss)							$	31		$	1
		Institutional				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	6,850		$		–
Reinvested		42				–
Redeemed		(993	)			–
Net Increase (Decrease)	$	5,899		$		–
Shares:
Sold		684				–
Reinvested		4				–
Redeemed		(100	)			–
Net Increase (Decrease)		588				–
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	3,152		$		10
Redeemed		(357	)			–
Net Increase (Decrease)	$	2,795		$		10
Shares:
Sold		321				1
Redeemed		(36	)			–
Net Increase (Decrease)		285				1

Distributions:
Year Ended October 31, 2016
From net investment income $		(41)			$	–
From net realized gain on
investments		(1	)			–
Total Dividends and Distributions $		(42)			$	–
Year Ended October 31, 2015^(a)
From net investment income $		–		$		–
From net realized gain on
investments		–				–
Total Dividends and Distributions $		–		$		–


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



																					Principal LifeTime
Amounts in thousands																			Strategic Income Fund
																			Year Ended				Year Ended
																			October 31, 2016				October 31, 2015
Operations
Net investment income (loss)																		$			13,376		$	16,166
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																					5,473			29,583
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																					5,328			(43,118	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																	24,177			2,631

Dividends and Distributions to Shareholders
From net investment income																					(13,535	)		(15,567	)
												Total Dividends and Distributions									(13,535	)		(15,567	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																					(43,823	)		(71,881	)
										Total Increase (Decrease) in Net Assets											(33,181	)		(84,817	)

Net Assets
Beginning of period																			719,973					804,790
End of period (including undistributed net investment income as set forth below)																		$	686,792				$	719,973
Undistributed (overdistributed) net investment income (loss)																		$			7,581		$	7,740
		Class A	Class B^(a)					Class J		Institutional		R-1		R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	11,417		N/A		$		8,985	$	63,932	$	905	$	1,102	$	4,729	$		4,532	$	8,920
Reinvested		488		N/A				1,412		10,042		55		82		404			267		774
Redeemed		(20,849	)	N/A				(12,427	)	(95,007	)	(2,314	)	(2,446	)	(8,000	)		(5,665	)	(15,161	)
Net Increase (Decrease)	$	(8,944	)	N/A		$		(2,030	) $	(21,033	) $	(1,354	) $	(1,262	) $	(2,867	) $		(866	) $	(5,467	)
Shares:
Sold		954		N/A				762		5,354		76		92		399			383		747
Reinvested		41		N/A				122		863		5		7		35			23		66
Redeemed		(1,728	)	N/A				(1,047	)	(7,945	)	(194	)	(204	)	(679	)		(483	)	(1,278	)
Net Increase (Decrease)		(733	)	N/A				(163	)	(1,728	)	(113	)	(105	)	(245	)		(77	)	(465	)
Year Ended October 31, 2015
Dollars:
Sold	$	4,277	$	–			$	19,119	$	63,088	$	855	$	1,267	$	5,478	$		7,840	$	9,964
Reinvested		517		3				1,417		11,655		84		104		519			337		921
Redeemed		(5,858	)	(340	)			(15,780	)	(133,822	)	(2,952	)	(3,633	)	(11,566	)		(12,649	)	(12,726	)
Net Increase (Decrease)	$	(1,064	) $	(337)			$	4,756	$	(59,079	) $	(2,013	) $	(2,262	) $	(5,569	) $		(4,472	) $	(1,841	)
Shares:
Sold		351		–				1,585		5,199		71		105		456			647		821
Reinvested		43		–				119		972		7		9		44			28		77
Redeemed		(479	)	(27	)			(1,309	)	(11,040	)	(243	)	(300	)	(961	)		(1,049	)	(1,052	)
Net Increase (Decrease)		(85	)	(27	)			395		(4,869	)	(165	)	(186	)	(461	)		(374	)	(154	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(498	)	N/A		$		(1,413	) $	(10,042	) $	(55	) $	(82	) $	(404	) $		(267	) $	(774	)
From net realized gain on
investments		–		N/A				–		–		–		–		–			–		–
Total Dividends and Distributions $		(498	)	N/A		$		(1,413	) $	(10,042	) $	(55	) $	(82	) $	(404	) $		(267	) $	(774	)
Year Ended October 31, 2015
From net investment income $		(527	) $	(3)			$	(1,417	) $	(11,655	) $	(84	) $	(104	) $	(519	) $		(337	) $	(921	)
From net realized gain on
investments		–		–				–		–		–		–		–			–		–
Total Dividends and Distributions $		(527	) $	(3)			$	(1,417	) $	(11,655	) $	(84	) $	(104	) $	(519	) $		(337	) $	(921	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																														Real Estate Securities Fund
																														Year Ended									Year Ended
																														October 31, 2016									October 31, 2015
Operations
Net investment income (loss)																														$				35,672					$				31,884
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																																		94,268							133,162
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																																		(15,113	)								(35,358	)
							Net Increase (Decrease) in Net Assets Resulting from Operations																									114,827									129,688

Dividends and Distributions to Shareholders
From net investment income																																		(39,649	)								(30,710	)
From net realized gain on investments																																(131,482			)								(20,461	)
																				Total Dividends and Distributions												(171,131			)								(51,171	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																																596,107									257,056
																Total Increase (Decrease) in Net Assets																539,803									335,573

Net Assets
Beginning of period																																2,370,286									2,034,713
End of period (including undistributed net investment income as set forth below)																														$		2,910,089							$		2,370,286
Undistributed (overdistributed) net investment income (loss)																														$				–					$				3,293

			Class A				Class B^(a)				Class C					Class J				Class P			Institutional			R-1				R-2				R-3					R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	164,156					N/A		$		18,844			$		33,553		$		89,142		$	689,683		$	4,333		$		11,408		$		22,315			$		26,749		$		67,043
Reinvested			18,272				N/A				2,492					12,615				5,094			91,878			445				884				4,408					6,214				10,640
Redeemed			(93,555	)			N/A				(9,783	)				(30,669	)			(37,937	)		(378,312	)		(2,832	)			(9,205	)			(25,603	)				(51,145)				(45,020	)
Net Increase (Decrease)		$	88,873				N/A		$		11,553			$		15,499		$		56,299		$	403,249		$	1,946		$		3,087		$		1,120		$	(18,182)					$	32,663
Shares:
Sold			7,019				N/A				819					1,471				3,830			29,765			189				516				981					1,178				2,987
Reinvested			814				N/A				113					576				225			4,074			20				41				201					287				487
Redeemed			(4,046	)			N/A				(431	)				(1,362	)			(1,653	)		(16,440	)		(125	)			(415	)			(1,123	)				(2,344)				(2,021	)
Net Increase (Decrease)			3,787				N/A				501					685				2,402			17,399			84				142				59					(879)				1,453
Year Ended October 31, 2015
Dollars:
Sold	$	171,316			$		65		$		16,496			$		34,665		$		69,916		$	561,722		$	2,386		$		7,413		$		27,701			$		54,787		$		53,147
Reinvested			4,797				38				439					4,061				1,153			28,961			125				279				1,204					1,651				3,941
Redeemed			(101,123	)			(4,007	)			(10,057	)				(49,090	)			(42,082	)		(430,645	)		(2,930	)			(8,893	)			(23,329	)				(33,484)				(83,567	)
Net Increase (Decrease)		$	74,990		$		(3,904)			$	6,878		$	(10,364)					$	28,987		$	160,038		$	(419)			$	(1,201)			$	5,576			$		22,954	$	(26,479			)
Shares:
Sold			7,277				3				722					1,522				2,980			24,308			104				332				1,222					2,483				2,355
Reinvested			211				2				20					183				51			1,274			5				13				54					75				178
Redeemed			(4,414	)			(168	)			(443	)				(2,205	)			(1,849	)		(18,856	)		(130	)			(405	)			(1,031	)				(1,517)				(3,772	)
Net Increase (Decrease)			3,074				(163	)			299					(500	)			1,182			6,726			(21	)			(60	)			245					1,041				(1,239	)

Distributions:
Year Ended October 31, 2016
From net investment income $			(4,030	)			N/A		$		(276)				$	(2,659)			$	(1,494)			$ (26,681)		$	(65)			$	(194)			$	(772)				$	(1,015)			$	(2,463	)
From net realized gain on
investments			(16,174	)			N/A				(2,380	)				(9,967	)			(4,121	)		(80,441	)		(380	)			(1,005	)			(3,636	)				(5,199)				(8,179	)
Total Dividends and Distributions $			(20,204)				N/A		$		(2,656) $				(12,626) $					(5,615)			$ (107,122)		$	(445)			$	(1,199)			$	(4,408)				$	(6,214) $				(10,642)
Year Ended October 31, 2015
From net investment income $			(3,001)			$	(4)			$	(138)				$	(2,217)			$	(864)			$ (20,461)		$	(50)			$	(151)			$	(619)				$	(947)			$	(2,258	)
From net realized gain on
investments			(2,088	)			(35	)			(339	)				(1,848	)			(447	)		(12,483	)		(75	)			(174	)			(585	)				(704)				(1,683	)
Total Dividends and Distributions $			(5,089)			$	(39)			$	(477)				$	(4,065)			$	(1,311)			$ (32,944)		$	(125)			$	(325)			$	(1,204)				$	(1,651)			$	(3,941	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																											SAM Balanced Portfolio
																											Year Ended								Year Ended
																											October 31, 2016								October 31, 2015
Operations
Net investment income (loss)																											$		69,643						$		92,235
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																													91,607						306,172
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																													(33,252	)					(347,591			)
						Net Increase (Decrease) in Net Assets Resulting from Operations																					127,998										50,816

Dividends and Distributions to Shareholders
From net investment income																													(68,032	)							(94,484	)
From net realized gain on investments																											(302,643			)					(114,369			)
																		Total Dividends and Distributions									(370,675			)					(208,853			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																											138,523								111,957
														Total Increase (Decrease) in Net Assets													(104,154			)							(46,080	)

Net Assets
Beginning of period																											4,863,352								4,909,432
End of period (including undistributed net investment income as set forth below)																										$	4,759,198							$	4,863,352
Undistributed (overdistributed) net investment income (loss)																											$		1,595						$		–

		Class A		Class B^(a)							Class C			Class J				Class P			Institutional			R-1			R-2		R-3						R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	171,257				N/A			$		90,544		$	141,261		$		11,843		$	66,157		$	667	$		786	$	18,627			$			6,479	$	16,533
Reinvested		158,612				N/A					52,448			79,100				393			62,778			269			368		5,002						2,969		5,599
Redeemed		(302,764	)			N/A					(119,159	)		(156,172	)			(4,505	)		(108,627	)		(1,633	)		(1,698	)	(16,186	)					(16,058	)	(26,367	)
Net Increase (Decrease)	$	27,105				N/A			$		23,833		$	64,189		$		7,731		$	20,308		$	(697	) $		(544)	$	7,443			$			(6,610)	$	(4,235	)
Shares:
Sold		11,566				N/A					6,180			9,807				805			4,528			46			56		1,280						447		1,119
Reinvested		10,853				N/A					3,643			5,572				27			4,351			19			26		348						206		389
Redeemed		(20,398	)			N/A					(8,160	)		(10,863	)			(313	)		(7,467	)		(112	)		(114	)	(1,100	)					(1,096	)	(1,782	)
Net Increase (Decrease)		2,021				N/A					1,663			4,516				519			1,412			(47	)		(32	)	528						(443	)	(274	)
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	297,970			$	187		$	131,222				$	147,888		$		4,130		$	109,627		$	595	$		1,349	$	15,803			$			8,254	$	18,056
Reinvested		87,837				2,542					25,846			43,921				4			36,411			171			333		2,588						2,337		5,053
Redeemed		(277,000	)			(79,100	)				(102,666	)		(145,800	)			(372	)		(127,425	)		(1,555	)		(5,244	)	(9,607	)					(24,695	)	(56,703	)
Net Increase (Decrease)	$	108,807		$	(76,371)					$	54,402		$	46,009		$		3,762		$	18,613		$	(789	) $		(3,562)	$	8,784		$				(14,104)	$	(33,594)
Shares:
Sold		18,474				12					8,257			9,448				267			7,003			38			85		995						521		1,153
Reinvested		5,532				160					1,647			2,844				–			2,323			11			21		166						149		323
Redeemed		(17,237	)			(4,861	)				(6,462	)		(9,341	)			(24	)		(8,023	)		(98	)		(328	)	(608	)					(1,558	)	(3,692	)
Net Increase (Decrease)		6,769				(4,689	)				3,442			2,951				243			1,303			(49	)		(222	)	553						(888	)	(2,216	)

Distributions:
Year Ended October 31, 2016
From net investment income		$ (29,853)				N/A			$		(5,441)		$	(16,255)			$	(104)		$	(13,836)		$	(34	) $		(53)	$	(843)				$		(516)	$	(1,097	)
From net realized gain on
investments		(130,829	)			N/A					(47,951	)		(62,954	)			(289	)		(48,956	)		(235	)		(315	)	(4,159	)					(2,453	)	(4,502	)
Total Dividends and Distributions	$	(160,682)				N/A		$			(53,392)		$	(79,209)			$	(393)		$	(62,792)		$	(269	) $		(368)	$	(5,002)				$		(2,969)	$	(5,599	)
Year Ended October 31, 2015^(b)
From net investment income	$	(40,952)	$			(861)				$	(9,266)		$	(20,597)			$	(4)		$	(18,112)		$	(64	) $		(129)	$	(1,119)				$		(1,012)	$	(2,368	)
From net realized gain on
investments		(48,036	)			(1,720	)				(17,140	)		(23,370	)			–			(18,313	)		(107	)		(204	)	(1,469	)					(1,325	)	(2,685	)
Total Dividends and Distributions	$	(88,988)	$			(2,581)				$	(26,406)		$	(43,967)			$	(4)		$	(36,425	)	$	(171	) $		(333)	$	(2,588)				$		(2,337)	$	(5,053	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																						SAM Conservative Balanced Portfolio
																						Year Ended					Year Ended
																						October 31, 2016					October 31, 2015
Operations
Net investment income (loss)																						$		34,138			$		35,688
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																								15,395					66,318
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																								5,028					(88,490	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																				54,561					13,516

Dividends and Distributions to Shareholders
From net investment income																								(33,702	)				(36,898	)
From net realized gain on investments																								(66,439	)				(26,236	)
														Total Dividends and Distributions								(100,141			)				(63,134	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																						104,160							76,968
											Total Increase (Decrease) in Net Assets													58,580					27,350

Net Assets
Beginning of period																						1,677,415					1,650,065
End of period (including undistributed net investment income as set forth below)																					$	1,735,995				$	1,677,415
Undistributed (overdistributed) net investment income (loss)																						$		1,812			$		1,388

		Class A	Class B^(a)					Class C			Class J			Class P		Institutional			R-1			R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	76,070		N/A		$		42,521		$	97,429	$		8,190	$	57,523		$	647	$		242	$	3,507	$		3,274	$	8,875
Reinvested		30,037		N/A				13,509			32,989			115		18,678			157			78		993			1,038		1,728
Redeemed		(92,044	)	N/A				(49,351	)		(87,455	)		(1,786	)	(42,602	)		(1,212	)		(616	)	(5,364	)		(6,497	)	(6,513	)
Net Increase (Decrease)	$	14,063		N/A		$		6,679		$	42,963	$		6,519	$	33,599		$	(408)	$		(296)	$	(864)	$		(2,185)	$	4,090
Shares:
Sold		6,593		N/A				3,733			8,517			709		5,172			56			22		307			287		781
Reinvested		2,635		N/A				1,200			2,927			10		1,652			14			7		88			92		153
Redeemed		(7,982	)	N/A				(4,329	)		(7,702	)		(153	)	(3,728	)		(108	)		(54	)	(472	)		(569	)	(566	)
Net Increase (Decrease)		1,246		N/A				604			3,742			566		3,096			(38	)		(25	)	(77	)		(190	)	368
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	99,927	$	125		$		60,353		$	97,001	$		1,938	$	44,564		$	589	$		743	$	4,522	$		6,453	$	10,344
Reinvested		18,746		333				7,540			20,833			4		12,027			96			85		734			782		1,418
Redeemed		(82,165	)	(13,686	)			(38,241	)		(94,285	)		(67	)	(46,140	)		(488	)		(1,995	)	(7,537	)		(9,413	)	(18,172	)
Net Increase (Decrease)	$	36,508	$	(13,228)		$		29,652		$	23,549	$		1,875	$	10,451		$	197	$		(1,167)	$	(2,281)	$		(2,178)	$	(6,410	)
Shares:
Sold		8,174		10				4,987			8,025			164		3,703			49			62		373			533		856
Reinvested		1,550		28				629			1,741			–		1,002			8			7		61			65		118
Redeemed		(6,736	)	(1,107	)			(3,165	)		(7,811	)		(6	)	(3,813	)		(41	)		(164	)	(623	)		(776	)	(1,527	)
Net Increase (Decrease)		2,988		(1,069	)			2,451			1,955			158		892			16			(95	)	(189	)		(178	)	(553	)

Distributions:
Year Ended October 31, 2016
From net investment income	$	(10,257)		N/A		$		(3,337)		$	(11,621)		$	(60)	$	(7,126	)	$	(39)	$		(21)	$	(297)	$		(328)	$	(616	)
From net realized gain on
investments		(20,247	)	N/A				(10,478	)		(21,414	)		(55	)	(11,552	)		(118	)		(57	)	(696	)		(710	)	(1,112	)
Total Dividends and Distributions	$	(30,504)		N/A			$	(13,815)		$	(33,035)		$	(115)		$ (18,678)		$	(157)	$		(78)	$	(993)	$		(1,038)	$	(1,728	)
Year Ended October 31, 2015^(b)
From net investment income $	$	(11,290)		(138)			$	(3,823)		$	(12,395)		$	(4)	$	(7,453	)	$	(50)	$		(44)	$	(404)	$		(446)	$	(851	)
From net realized gain on
investments		(7,770	)	(202	)			(3,907	)		(8,463	)		–		(4,574	)		(46	)		(41	)	(330	)		(336	)	(567	)
Total Dividends and Distributions	$	(19,060)	$	(340)			$	(7,730)		$	(20,858)		$	(4)	$	(12,027)		$	(96)	$		(85)	$	(734)	$		(782)	$	(1,418	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																														SAM Conservative Growth Portfolio
																														Year Ended							Year Ended
																														October 31, 2016							October 31, 2015
Operations
Net investment income (loss)																														$		28,574					$			51,222
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																																76,481					297,635
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																																(48,392	)				(316,879				)
						Net Increase (Decrease) in Net Assets Resulting from Operations																										56,663								31,978

Dividends and Distributions to Shareholders
From net investment income																																(25,969	)							(52,728	)
From net realized gain on investments																														(290,387			)				(102,365				)
																			Total Dividends and Distributions											(316,356			)				(155,093				)

Capital Share Transactions
Net increase (decrease) in capital share transactions																																73,979								34,828
															Total Increase (Decrease) in Net Assets															(185,714			)							(88,287	)

Net Assets
Beginning of period																														3,184,432							3,272,719
End of period (including undistributed net investment income as set forth below)																													$	2,998,718						$	3,184,432
Undistributed (overdistributed) net investment income (loss)																														$		3,807					$			1,202

		Class A			Class B^(a)						Class C			Class J					Class P					Institutional			R-1			R-2		R-3					R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	86,515				N/A			$		43,844		$		59,168		$		4,632			$		23,568		$	439	$		630	$	4,319		$			3,896	$		9,034
Reinvested		145,641				N/A					51,979				51,098				340					54,023			305			478		2,864					1,891			4,531
Redeemed		(200,706	)			N/A					(81,691	)			(76,209	)			(1,609	)				(85,897	)		(1,092	)		(1,923	)	(7,075	)				(8,807	)		(10,207	)
Net Increase (Decrease)	$	31,450				N/A			$		14,132		$		34,057		$		3,363			$		(8,306	)	$	(348)	$		(815)	$	108		$			(3,020)	$		3,358
Shares:
Sold		5,283				N/A					2,853				3,691				289					1,449			29			42		273					244			555
Reinvested		9,023				N/A					3,445				3,263				21					3,406			19			31		183					120			288
Redeemed		(12,202	)			N/A					(5,318	)			(4,797	)			(100	)				(5,352	)		(69	)		(120	)	(444	)				(539	)		(614	)
Net Increase (Decrease)		2,104				N/A					980				2,157				210					(497	)		(21	)		(47	)	12					(175	)		229
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	192,880			$	128			$		67,814		$		72,559		$		2,909			$		62,339		$	711	$		1,627	$	6,561		$			6,067	$		12,921
Reinvested		69,639				2,102					23,076				24,520				–					26,906			192			392		1,226					1,179			4,218
Redeemed		(193,303	)			(59,776	)				(70,964	)			(77,500	)			(73	)				(72,993	)		(1,812	)		(4,943	)	(3,635	)				(10,305	)		(49,834	)
Net Increase (Decrease)	$	69,216			$	(57,546)				$	19,926		$		19,579		$		2,836			$		16,252		$	(909)	$		(2,924)	$	4,152		$			(3,059)		$	(32,695)
Shares:
Sold		10,439				7					3,896				4,056				165					3,510			39			91		365					337			725
Reinvested		3,843				120					1,351				1,392				–					1,510			11			22		70					66			238
Redeemed		(10,520	)			(3,287	)				(4,090	)			(4,340	)			(4	)				(4,044	)		(103	)		(275	)	(203	)				(576	)		(2,875	)
Net Increase (Decrease)		3,762				(3,160	)				1,157				1,108				161					976			(53	)		(162	)	232					(173	)		(1,912	)

Distributions:
Year Ended October 31, 2016
From net investment income	$	(12,787)				N/A			$		(1,026)			$	(4,969)			$	(39)				$	(6,411)		$	(7)	$		(12)	$	(201)			$		(147)	$		(370	)
From net realized gain on
investments		(134,556	)			N/A					(52,427	)			(46,145	)			(301	)				(47,624	)		(298	)		(468	)	(2,663	)				(1,744	)		(4,161	)
Total Dividends and Distributions	$	(147,343)				N/A		$			(53,453)			$	(51,114)			$	(340)				$	(54,035)		$	(305)	$		(480)	$	(2,864)			$		(1,891)	$		(4,531	)
Year Ended October 31, 2015^(b)
From net investment income	$	(24,700)		$		(348)				$	(5,773)			$	(8,800)			$	–		$	(10,601			)	$	(52)	$		(117)	$	(388)			$		(412)	$		(1,537	)
From net realized gain on
investments		(45,829	)			(1,779	)				(18,013	)			(15,731	)			–					(16,312	)		(140	)		(275	)	(838	)				(767	)		(2,681	)
Total Dividends and Distributions	$	(70,529)		$		(2,127)				$	(23,786)		$		(24,531)			$	–		$	(26,913			)	$	(192)	$		(392)	$	(1,226)			$		(1,179)	$		(4,218	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																													SAM Flexible Income Portfolio
																													Year Ended					Year Ended
																													October 31, 2016					October 31, 2015
Operations
Net investment income (loss)																													$		61,267			$		55,748
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																															5,461					56,598
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																															27,616			(111,997			)
						Net Increase (Decrease) in Net Assets Resulting from Operations																									94,344					349

Dividends and Distributions to Shareholders
From net investment income																															(61,873	)				(54,855	)
From net realized gain on investments																															(56,712	)				(21,877	)
																	Total Dividends and Distributions												(118,585			)				(76,732	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																													300,691					261,763
														Total Increase (Decrease) in Net Assets															276,450					185,380

Net Assets
Beginning of period																													2,255,466					2,070,086
End of period (including undistributed net investment income as set forth below)																												$	2,531,916				$	2,255,466
Undistributed (overdistributed) net investment income (loss)																													$		470			$		1,092
		Class A			Class B^(a)						Class C			Class J			Class P				Institutional			R-1					R-2		R-3			R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	220,837				N/A			$		79,400		$	279,814		$	9,471		$		23,807		$	534		$			79	$	1,269	$		1,972	$	6,022
Reinvested		43,611				N/A					15,191			46,955			416				9,525			35					39		465			388		921
Redeemed		(177,952	)			N/A					(70,425	)		(142,909	)		(2,577	)			(34,726	)		(139	)				(230	)	(3,598	)		(4,032	)	(3,472	)
Net Increase (Decrease)	$	86,496				N/A			$		24,166		$	183,860		$	7,310		$		(1,394	)	$	430		$			(112)	$	(1,864)	$		(1,672)	$	3,471
Shares:
Sold		18,535				N/A					6,744			23,660			788				2,013			45					7		108			167		510
Reinvested		3,709				N/A					1,308			4,022			36				812			3					3		40			33		79
Redeemed		(15,044	)			N/A					(5,988	)		(12,179	)		(218	)			(2,936	)		(12	)				(19	)	(308	)		(339	)	(294	)
Net Increase (Decrease)		7,200				N/A					2,064			15,503			606				(111	)		36					(9	)	(160	)		(139	)	295
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	222,826			$	126			$		97,577		$	250,254		$	4,676		$		31,072		$	161		$			416	$	3,322	$		2,276	$	4,492
Reinvested		29,207				307					9,283			28,565			11				7,076			23					32		375			383		780
Redeemed		(175,907	)			(16,876	)				(58,992	)		(125,499	)		(71	)			(34,505	)		(224	)				(715	)	(3,737	)		(6,527	)	(8,424	)
Net Increase (Decrease)	$	76,126		$	(16,443)					$	47,868		$	153,320		$	4,616		$		3,643		$	(40)			$		(267)	$	(40)	$		(3,868)	$	(3,152	)
Shares:
Sold		17,909				10					7,925			20,289			386				2,513			13					33		267			184		363
Reinvested		2,357				25					756			2,323			1				573			2					3		31			31		63
Redeemed		(14,180	)			(1,342	)				(4,802	)		(10,197	)		(6	)			(2,795	)		(18	)				(57	)	(302	)		(527	)	(692	)
Net Increase (Decrease)		6,086				(1,307	)				3,879			12,415			381				291			(3	)				(21	)	(4	)		(312	)	(266	)

Distributions:
Year Ended October 31, 2016
From net investment income	$	(23,117)				N/A			$		(6,785)		$	(25,610)		$	(235)			$	(5,179	)	$	(17)			$		(18)	$	(216)	$		(192)	$	(504	)
From net realized gain on
investments		(21,175	)			N/A					(8,654	)		(21,453	)		(181	)			(4,348	)		(18	)				(21	)	(249	)		(196	)	(417	)
Total Dividends and Distributions	$	(44,292)				N/A		$			(15,439)		$	(47,063)		$	(416)			$	(9,527	)	$	(35)			$		(39)	$	(465)	$		(388)	$	(921	)
Year Ended October 31, 2015^(b)
From net investment income $	$	(21,358)				(146)				$	(6,118)		$	(20,889)		$	(11)			$	(5,225	)	$	(15)			$		(22)	$	(257)	$		(258)	$	(556	)
From net realized gain on
investments		(8,287	)			(167	)				(3,335	)		(7,749	)		–				(1,854	)		(8	)				(10)		(118	)		(125	)	(224	)
Total Dividends and Distributions	$	(29,645) $				(313)				$	(9,453)		$	(28,638)		$	(11)			$	(7,079	)	$	(23)			$		(32)	$	(375)	$		(383)	$	(780	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																															SAM Strategic Growth Portfolio
																															Year Ended							Year Ended
																															October 31, 2016							October 31, 2015
Operations
Net investment income (loss)																															$		19,137					$		35,133
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																																	55,773					225,188
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																																	(58,963	)				(242,500			)
								Net Increase (Decrease) in Net Assets Resulting from Operations																									15,947							17,821

Dividends and Distributions to Shareholders
From net investment income																																	(17,512	)						(34,985	)
From net realized gain on investments																															(220,872			)						(94,070	)
																				Total Dividends and Distributions											(238,384			)				(129,055			)

Capital Share Transactions
Net increase (decrease) in capital share transactions																																	85,379							30,241
																Total Increase (Decrease) in Net Assets															(137,058			)						(80,993	)

Net Assets
Beginning of period																															1,932,184							2,013,177
End of period (including undistributed net investment income as set forth below)																														$	1,795,126						$	1,932,184
Undistributed (overdistributed) net investment income (loss)																															$		7,196					$		5,580
			Class A				Class B^(a)					Class C				Class J			Class P						Institutional			R-1			R-2		R-3					R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold		$	56,757					N/A		$		24,229		$		28,430		$		1,970			$		14,861		$	309	$		294	$	3,302		$			2,934	$	4,913
Reinvested			119,346					N/A				39,680				34,991				186					34,074			391			342		2,180					1,704		2,940
Redeemed		(134,054)						N/A				(47,623	)			(43,623	)			(948	)				(41,877	)		(1,324	)		(986	)	(4,003	)				(5,703	)	(8,313	)
Net Increase (Decrease)		$	42,049					N/A		$		16,286		$		19,798		$		1,208			$		7,058		$	(624	) $		(350	) $	1,479		$			(1,065	) $	(460	)
Shares:
Sold			3,155					N/A				1,464				1,610				110					829			18			17		183					169		274
Reinvested			6,683					N/A				2,421				2,020				11					1,945			23			20		126					98		170
Redeemed			(7,416	)				N/A				(2,871	)			(2,483	)			(53	)				(2,366	)		(77	)		(56	)	(221	)				(320	)	(472	)
Net Increase (Decrease)			2,422					N/A				1,014				1,147				68					408			(36	)		(19	)	88					(53	)	(28	)
Year Ended October 31, 2015^(b)
Dollars:
Sold	$	127,786				$		82		$		38,193		$		37,020		$		1,439			$		30,909		$	659	$		1,514	$	4,399		$			6,720	$	9,769
Reinvested			62,495					2,452				19,822				18,748				–					18,927			258			294		1,126					1,260		2,320
Redeemed		(128,375)						(46,920	)			(45,000	)			(45,191	)			(98	)				(48,080	)		(1,791	)		(3,557	)	(4,305	)				(12,775	)	(19,859	)
Net Increase (Decrease)		$	61,906		$	(44,386)					$	13,015		$		10,577		$		1,341			$		1,756		$	(874)	$		(1,749	) $	1,220		$			(4,795)	$	(7,770	)
Shares:
Sold			6,059					4				1,958				1,809				72					1,540			31			74		216					327		480
Reinvested			3,030					127				1,034				933				–					934			13			15		56					62		115
Redeemed			(6,132	)				(2,341	)			(2,304	)			(2,216	)			(5	)				(2,337	)		(88	)		(173	)	(212	)				(622	)	(1,018	)
Net Increase (Decrease)			2,957					(2,210	)			688				526				67					137			(44	)		(84	)	60					(233	)	(423	)

Distributions:
Year Ended October 31, 2016
From net investment income $			(9,395	)				N/A			$	(1,000)			$	(2,992)			$	(19)				$	(3,582)		$	(15)	$		(11	) $	(142)			$		(123)	$	(233	)
From net realized gain on
investments		(111,444		)				N/A				(39,596	)			(32,003	)			(167	)				(30,629	)		(376	)		(331	)	(2,038	)				(1,581	)	(2,707	)
Total Dividends and Distributions		$	(120,839)					N/A			$	(40,596)				$ (34,995)	$			(186)				$	(34,211)		$	(391)	$		(342	) $	(2,180)			$		(1,704)	$	(2,940	)
Year Ended October 31, 2015^(b)
From net investment income		$	(17,786)				$	(350)			$	(3,981)			$	(5,395)			$	–			$		(6,050	)	$	(49)	$		(69	) $	(288			) $		(337)	$	(680	)
From net realized gain on
investments			(45,478	)				(2,128	)			(16,319	)			(13,354	)			–					(12,956	)		(209	)		(225	)	(838	)				(923	)	(1,640	)
Total Dividends and Distributions		$	(63,264)				$	(2,478)			$	(20,300 )			$	(18,749)			$	–		$	(19,006			)	$	(258)	$		(294	) $	(1,126)			$		(1,260)	$	(2,320	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																														Short-Term Income Fund
																														Year Ended						Year Ended
																														October 31, 2016						October 31, 2015
Operations
Net investment income (loss)																														$				52,795		$		41,638
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																																		4,016				459
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																																		11,973				(13,080	)
							Net Increase (Decrease) in Net Assets Resulting from Operations																											68,784				29,017

Dividends and Distributions to Shareholders
From net investment income																																		(56,092	)			(41,019	)
From net realized gain on investments																																		(93	)			(651	)
																			Total Dividends and Distributions															(56,185	)			(41,670	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																																275,302						289,518
																Total Increase (Decrease) in Net Assets																287,901						276,865

Net Assets
Beginning of period																																2,815,041						2,538,176
End of period (including undistributed net investment income as set forth below)																														$		3,102,942				$		2,815,041
Undistributed (overdistributed) net investment income (loss)																														$				467		$		3,774
			Class A				Class C			Class J					Class P				Institutional		R-1					R-2				R-3				R-4		R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	190,850			$		30,913		$		48,815		$	135,426				$	596,548		$	417		$		1,285		$		23,623		$		3,336	$	5,256
Reinvested			4,964				674				2,326					1,534			44,106			14				28				180				214		198
Redeemed			(154,599	)			(30,120	)			(31,818	)				(89,689	)		(483,517	)		(335	)			(941	)			(14,119	)			(4,440	)	(5,827	)
Net Increase (Decrease)		$	41,215		$		1,467		$		19,323			$		47,271		$	157,137		$	96		$		372		$		9,684		$		(890	) $	(373	)
Shares:
Sold			15,665				2,539				4,013					11,119			48,980			34				106				1,933				274		431
Reinvested			408				55				191					126			3,622			1				2				15				17		16
Redeemed			(12,696	)			(2,473	)			(2,616	)				(7,372	)		(39,711	)		(27	)			(77	)			(1,156	)			(366	)	(480	)
Net Increase (Decrease)			3,377				121				1,588					3,873			12,891			8				31				792				(75	)	(33	)
Year Ended October 31, 2015
Dollars:
Sold	$	143,071			$		26,015		$		37,156			$		89,972		$	720,313		$	498		$		602		$		4,762		$		3,769	$	5,638
Reinvested			3,484				389				1,570					947			33,356			9				17				126				183		147
Redeemed			(124,474	)			(31,401	)			(34,235	)				(76,490	)		(499,955	)		(734	)			(592	)			(7,883	)			(4,110	)	(2,632	)
Net Increase (Decrease)		$	22,081		$		(4,997)			$	4,491			$		14,429		$	253,714		$	(227)			$	27		$		(2,995)			$	(158	) $	3,153
Shares:
Sold			11,717				2,129				3,043					7,364			58,984			41				49				390				309		461
Reinvested			285				32				129					78			2,732			1				2				10				15		12
Redeemed			(10,189	)			(2,569	)			(2,804	)				(6,263	)		(40,933	)		(60	)			(49	)			(645	)			(337	)	(215	)
Net Increase (Decrease)			1,813				(408	)			368					1,179			20,783			(18	)			2				(245	)			(13	)	258

Distributions:
Year Ended October 31, 2016
From net investment income $			(5,530)			$	(734)			$	(2,338)				$	(1,967)	$		(44,888)		$	(14)			$	(29)			$	(180)			$	(214	) $	(198	)
From net realized gain on
investments			(11	)			(3	)			(4	)				(3	)		(72	)		–				–				–				–		–
Total Dividends and Distributions $			(5,541)			$	(737)			$	(2,342)				$	(1,970)		$	(44,960)		$	(14)			$	(29)			$	(180)			$	(214	) $	(198	)
Year Ended October 31, 2015
From net investment income $			(3,787)			$	(409)			$	(1,558)				$	(1,242)		$	(33,551)		$	(9)				(17)			$	(123)			$	(179	) $	(144	)
From net realized gain on
investments			(68	)			(22	)			(29	)				(20	)		(502	)		–				–				(3	)			(4	)	(3	)
Total Dividends and Distributions $			(3,855)			$	(431)			$	(1,587)				$	(1,262)		$	(34,053)		$	(9)			$	(17)			$	(126)			$	(183	) $	(147	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												SmallCap Fund
																								Year Ended								Year Ended
																								October 31, 2016								October 31, 2015
Operations
Net investment income (loss)																								$				3,610				$				(559	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																												18,587								31,616
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																												(19,358	)							1,980
				Net Increase (Decrease) in Net Assets Resulting from Operations																								2,839								33,037

Dividends and Distributions to Shareholders
From net realized gain on investments																												(21,904	)							(57,913	)
												Total Dividends and Distributions																(21,904	)							(57,913	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																												(25,510	)					114,771
										Total Increase (Decrease) in Net Assets																		(44,575	)							89,895

Net Assets
Beginning of period																										598,977								509,082
End of period (including undistributed net investment income as set forth below)																								$		554,402						$		598,977
Undistributed (overdistributed) net investment income (loss)																								$				2,648				$				(582	)
		Class A	Class B^(a)					Class C		Class J		Class P					Institutional			R-1				R-2				R-3				R-4				R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	43,505		N/A		$		8,303	$	6,583	$	9,472			$		41,308		$	692		$		9,218		$		8,539		$		9,364		$		6,172
Reinvested		8,191		N/A				1,005		7,383		203					3,104			117				100				442				402				693
Redeemed		(55,167	)	N/A				(7,956	)	(25,106	)	(4,684	)				(77,618	)		(1,017	)			(2,549	)			(5,125	)			(4,911	)			(6,173	)
Net Increase (Decrease)	$	(3,471	)	N/A		$		1,352	$	(11,140)	$	4,991		$	(33,206			)	$	(208)			$	6,769		$		3,856		$		4,855		$		692
Shares:
Sold		2,248		N/A				466		351		456					2,056			36				493				435				464				298
Reinvested		422		N/A				56		397		10					151			6				5				23				20				34
Redeemed		(2,871	)	N/A				(456	)	(1,360	)	(226	)				(3,824	)		(56	)			(133	)			(265	)			(245	)			(305	)
Net Increase (Decrease)		(201	)	N/A				66		(612	)	240					(1,617	)		(14	)			365				193				239				27
Year Ended October 31, 2015
Dollars:
Sold	$	63,659	$	13		$		11,775	$	16,663	$	7,846			$		28,320		$	1,048		$		1,876		$		6,126		$		6,935		$		10,174
Reinvested		21,091		328				1,864		23,309		9					7,837			274				313				727				455				1,324
Redeemed		(39,668	)	(2,928	)			(3,114	)	(30,577	)	(1,722	)				(7,827	)		(371	)			(782	)			(3,737	)			(2,063	)			(4,406	)
Net Increase (Decrease)	$	45,082	$	(2,587)			$	10,525	$	9,395	$	6,133			$		28,330		$	951		$		1,407		$		3,116		$		5,327		$		7,092
Shares:
Sold		2,992		1				598		814		349					1,271			50				90				288				319				477
Reinvested		1,084		19				103		1,247		1					382			15				16				37				23				65
Redeemed		(1,887	)	(157	)			(158	)	(1,508	)	(77	)				(345	)		(18	)			(38	)			(176	)			(96	)			(201	)
Net Increase (Decrease)		2,189		(137	)			543		553		273					1,308			47				68				149				246				341

Distributions:
Year Ended October 31, 2016
From net investment income $		–		N/A		$		– $		– $		–			$		–		$	–		$		–		$		–		$		–		$		–
From net realized gain on
investments		(8,349	)	N/A				(1,034	)	(7,387	)	(205	)				(3,105	)		(117	)			(170	)			(442	)			(402	)			(693	)
Total Dividends and Distributions $		(8,349	)	N/A		$		(1,034	) $	(7,387)	$	(205)				$	(3,105	)	$	(117)			$	(170)			$	(442)			$	(402)			$	(693	)
Year Ended October 31, 2015
From net investment income $		– $		–		$		– $		– $		–			$		–		$	–		$		–		$		–		$		–		$		–
From net realized gain on
investments		(21,322	)	(330	)			(1,913	)	(23,316	)	(9	)				(7,838	)		(274	)			(405	)			(727	)			(455	)			(1,324	)
Total Dividends and Distributions	$	(21,322)	$	(330)			$	(1,913)	$	(23,316)	$	(9)				$	(7,838	)	$	(274)			$	(405)			$	(727)			$	(455)			$	(1,324	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																												SmallCap Growth Fund I
																												Year Ended					Year Ended
																												October 31, 2016				October 31, 2015
Operations
Net investment income (loss)																												$		(6,208	)	$	(9,445	)
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																														50,131			208,844
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																														(32,278	)		(154,109	)
					Net Increase (Decrease) in Net Assets Resulting from Operations																									11,645			45,290

Dividends and Distributions to Shareholders
From net realized gain on investments																														(137,062	)		(277,883	)
																Total Dividends and Distributions														(137,062	)		(277,883	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																														(88,333	)		9,794
												Total Increase (Decrease) in Net Assets																		(213,750	)		(222,799	)

Net Assets
Beginning of period																														1,623,656			1,846,455
End of period (including undistributed net investment income as set forth below)																												$		1,409,906		$	1,623,656
Undistributed (overdistributed) net investment income (loss)																												$		(6,222	)	$	(4,547	)
		Class J			Institutional			R-1				R-2				R-3				R-4				R-5				R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	5,474		$	95,246		$	396		$		1,697		$		2,940		$		2,870		$		7,618		$		698
Reinvested		5,518			123,295			283				509				1,830				1,326				3,284				1
Redeemed		(10,761	)		(302,109	)		(1,207	)			(3,265	)			(7,232	)			(6,494	)			(10,149	)			(101	)
Net Increase (Decrease)	$	231		$	(83,568	)	$	(528)			$	(1,059)			$	(2,462)			$	(2,298)			$	753		$		598
Shares:
Sold		643			8,971			43				189				313				290				734				62
Reinvested		650			11,239			30				56				192				132				315				–
Redeemed		(1,286	)		(28,236	)		(131	)			(353	)			(749	)			(643	)			(983	)			(9	)
Net Increase (Decrease)		7			(8,026	)		(58	)			(108	)			(244	)			(221	)			66				53
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	18,689		$	259,582		$	1,066		$		2,657		$		8,462		$		6,158		$		10,791		$		10
Reinvested		11,184			249,057			570				1,247				3,725				3,095				6,706				2
Redeemed		(20,688	)		(517,984	)		(1,258	)			(3,277	)			(10,163	)			(7,472	)			(12,365	)			–
Net Increase (Decrease)	$	9,185		$	(9,345	)	$	378		$		627		$		2,024		$		1,781		$		5,132		$		12
Shares:
Sold		1,821			19,871			95				248				757				520				888				1
Reinvested		1,214			21,526			56				127				363				289				606				–
Redeemed		(2,067	)		(38,783	)		(113	)			(311	)			(898	)			(660	)			(1,048	)			–
Net Increase (Decrease)		968			2,614			38				64				222				149				446				1

Distributions:
Year Ended October 31, 2016
From net investment income $		–			$ –		$	–		$		–		$		–		$		–		$		–		$		–
From net realized gain on
investments		(5,518	)		(124,295	)		(283	)			(525	)			(1,830	)			(1,326	)			(3,284	)			(1	)
Total Dividends and Distributions $		(5,518)		$	(124,295)		$	(283)			$	(525)			$	(1,830)			$	(1,326)			$	(3,284)			$	(1	)
Year Ended October 31, 2015^(a)
From net investment income $		–			$ –		$	–		$		–		$		–		$		–		$		–		$		–
From net realized gain on
investments		(11,186	)		(251,293	)		(570	)			(1,306	)			(3,725	)			(3,095	)			(6,706	)			(2	)
Total Dividends and Distributions	$	(11,186)			$ (251,293)		$	(570)			$	(1,306)			$	(3,725)			$	(3,095)			$	(6,706)			$	(2	)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				SmallCap S&P 600 Index Fund
																				Year Ended		Year Ended
																			October 31, 2016			October 31, 2015
Operations
Net investment income (loss)																			$	11,961		$	11,430
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																				83,322			87,362
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																				(28,997	)		(72,139	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																66,286			26,653

Dividends and Distributions to Shareholders
From net investment income																				(11,706	)		(9,853	)
From net realized gain on investments																				(77,164	)		(71,123	)
												Total Dividends and Distributions								(88,870	)		(80,976	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																				10,736			119,894
										Total Increase (Decrease) in Net Assets										(11,848	)		65,571

Net Assets
Beginning of period																				1,130,652			1,065,081
End of period (including undistributed net investment income as set forth below)																			$	1,118,804		$	1,130,652
Undistributed (overdistributed) net investment income (loss)																			$	8,398		$	8,498
		Class J		Institutional				R-1		R-2		R-3		R-4			R-5
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	21,683	$	127,933		$		4,168	$	6,483	$	28,938	$	20,846	$		42,922
Reinvested		11,205		46,396				879		1,100		9,101		6,373			13,752
Redeemed		(18,560	)	(179,344	)			(4,123	)	(6,129	)	(43,174	)	(32,048	)		(47,665	)
Net Increase (Decrease)	$	14,328	$	(5,015)			$	924	$	1,454	$	(5,135	) $	(4,829	) $		9,009
Shares:
Sold		991		5,707				187		283		1,260		899			1,844
Reinvested		538		2,126				41		50		411		285			612
Redeemed		(867	)	(7,829	)			(187	)	(269	)	(1,879	)	(1,425	)		(2,063	)
Net Increase (Decrease)		662		4				41		64		(208	)	(241	)		393
Year Ended October 31, 2015
Dollars:
Sold	$	13,510	$	170,441		$		3,160	$	3,425	$	31,156	$	21,188	$		36,334
Reinvested		11,030		38,183				944		1,308		9,383		6,428			13,620
Redeemed		(23,412	)	(82,531	)			(5,968	)	(8,059	)	(41,786	)	(25,635	)		(52,825	)
Net Increase (Decrease)	$	1,128		$ 126,093		$		(1,864	) $	(3,326	) $	(1,247	) $	1,981	$		(2,871	)
Shares:
Sold		575		7,016				131		138		1,256		846			1,450
Reinvested		488		1,616				41		55		392		266			561
Redeemed		(1,000	)	(3,375	)			(247	)	(332	)	(1,682	)	(1,037	)		(2,118	)
Net Increase (Decrease)		63		5,257				(75	)	(139	)	(34	)	75			(107	)

Distributions:
Year Ended October 31, 2016
From net investment income $		(1,356	) $	(7,045)			$	(43)	$	(64)	$	(776)	$	(701)	$		(1,721)
From net realized gain on
investments		(9,855	)	(39,406	)			(836	)	(1,036	)	(8,328	)	(5,672	)		(12,031	)
Total Dividends and Distributions		$ (11,211)	$	(46,451)			$	(879	) $	(1,100	) $	(9,104	) $	(6,373)		$	(13,752)
Year Ended October 31, 2015
From net investment income $		(1,165	) $	(5,551)			$	(33	)$	(67	) $	(775	) $	(679	) $		(1,583	)
From net realized gain on
investments		(9,867	)	(32,708	)			(911	)	(1,241	)	(8,609	)	(5,750	)		(12,037	)
Total Dividends and Distributions	$	(11,032)	$	(38,259)				$(944	) $	(1,308	) $	(9,384	) $	(6,429)		$	(13,620)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																		SmallCap Value Fund II
																		Year Ended				Year Ended
																		October 31, 2016				October 31, 2015
Operations
Net investment income (loss)																		$		7,269		$		7,869
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																				81,097				175,277
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																				(29,725	)			(169,808	)
				Net Increase (Decrease) in Net Assets Resulting from Operations																58,641				13,338

Dividends and Distributions to Shareholders
From net investment income																				(8,870	)			(4,369	)
From net realized gain on investments																		(129,070			)			(136,041	)
										Total Dividends and Distributions								(137,940			)			(140,410	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																				(26,186	)			(111,118	)
								Total Increase (Decrease) in Net Assets										(105,485			)			(238,190	)

Net Assets
Beginning of period																		1,324,606						1,562,796
End of period (including undistributed net investment income as set forth below)																	$	1,219,121				$		1,324,606
Undistributed (overdistributed) net investment income (loss)																		$		3,538		$		5,405
		Class A		Class J		Class P		Institutional		R-1			R-2		R-3			R-4		R-5		R-6
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	1,478	$	1,757	$	6,492	$	162,348	$	262	$		1,826	$	4,652	$		2,635	$	5,451	$	3,579
Reinvested		267		1,919		25		130,152		189			280		1,247			1,275		2,233		8
Redeemed		(1,040	)	(3,359	)	(6,544	)	(324,962	)	(652	)		(1,861	)	(3,655	)		(6,843	)	(5,216	)	(129	)
Net Increase (Decrease)	$	705	$	317	$	(27	) $	(32,462	) $	(201	) $		245	$	2,244	$		(2,933	) $	2,468	$	3,458
Shares:
Sold		126		155		578		14,490		25			169		426			233		483		304
Reinvested		24		177		2		11,706		18			27		116			117		204		–
Redeemed		(91	)	(299	)	(556	)	(28,440	)	(61	)		(166	)	(332	)		(664	)	(448	)	(11	)
Net Increase (Decrease)		59		33		24		(2,244	)	(18	)		30		210			(314	)	239		293
Year Ended October 31, 2015^(a)
Dollars:
Sold	$	2,557	$	2,113	$	35	$	182,968	$	402	$		1,246	$	3,363	$		2,347	$	5,776	$	10
Reinvested		70		2,120		2		132,327		211			485		1,213			1,393		2,475		1
Redeemed		(399	)	(3,304	)	–		(433,011	)	(522	)		(2,235	)	(3,046	)		(3,740	)	(5,975	)	–
Net Increase (Decrease)	$	2,228	$	929	$	37	$	(117,716)	$	91	$		(504)	$	1,530	$		– $		2,276	$	11
Shares:
Sold		192		164		3		13,702		31			100		261			181		441		1
Reinvested		6		172		–		10,497		18			41		99			113		199		–
Redeemed		(31	)	(256	)	–		(31,710	)	(42	)		(178	)	(237	)		(289	)	(460	)	–
Net Increase (Decrease)		167		80		3		(7,511	)	7			(37	)	123			5		180		1

Distributions:
Year Ended October 31, 2016
From net investment income $		(11)	$	(44)	$	(2)	$	(8,657)	$	–		$	–	$	(21)	$		(40)	$	(94)	$	(1)
From net realized gain on
investments		(256	)	(1,875	)	(23	)	(121,780	)	(189	)		(340	)	(1,226	)		(1,235	)	(2,139	)	(7	)
Total Dividends and Distributions $		(267)	$	(1,919	) $	(25)	$	(130,437)	$	(189	) $		(340	) $	(1,247)	$		(1,275	) $	(2,233	) $	(8)
Year Ended October 31, 2015^(a)
From net investment income $		(2)	$	– $		– $		(4,343)	$	– $			– $		– $			– $		(24	) $	–
From net realized gain on
investments		(68	)	(2,120	)	(2	)	(128,097	)	(211	)		(485	)	(1,213	)		(1,393	)	(2,451	)	(1	)
Total Dividends and Distributions $		(70)	$	(2,120	) $	(2)	$	(132,440)	$	(211	) $		(485	) $	(1,213)	$		(1,393	) $	(2,475	) $	(1)


STATEMENT OF CHANGES IN NET ASSETS
PRINCIPAL FUNDS, INC.



Amounts in thousands																				Tax-Exempt Bond Fund
																				Year Ended			Year Ended
																				October 31, 2016		October 31, 2015
Operations
Net investment income (loss)																			$	12,511		$	9,316
Net realized gain (loss) on investments, foreign currency transactions, futures,
options and swaptions, short sales, and swap agreements																				1,466			299
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions, short sales,
swap agreements, and translation of assets and liabilities in foreign currencies																				(1,346	)		(2,628	)
					Net Increase (Decrease) in Net Assets Resulting from Operations															12,631			6,987

Dividends and Distributions to Shareholders
From net investment income																				(12,049	)		(9,623	)
																	Total Dividends and Distributions			(12,049	)		(9,623	)

Capital Share Transactions
Net increase (decrease) in capital share transactions																				180,172			35,992
													Total Increase (Decrease) in Net Assets							180,754			33,356

Net Assets
Beginning of period																				251,199			217,843
End of period (including undistributed net investment income as set forth below)																			$	431,953		$	251,199
Undistributed (overdistributed) net investment income (loss)																			$	1,077		$	668
			Class A	Class B^(a)					Class C				Class P		Institutional
Capital Share Transactions:
Year Ended October 31, 2016
Dollars:
Sold	$	135,345			N/A		$		22,381		$		70,613		$		4,024
Reinvested			8,151		N/A				514				804				90
Redeemed			(44,289	)	N/A				(5,820	)			(11,566	)			(75	)
Net Increase (Decrease)		$	99,207		N/A		$		17,075		$		59,851		$		4,039
Shares:
Sold			17,993		N/A				2,980				9,415				536
Reinvested			1,085		N/A				68				107				12
Redeemed			(5,901	)	N/A				(776	)			(1,541	)			(10	)
Net Increase (Decrease)			13,177		N/A				2,272				7,981				538
Year Ended October 31, 2015^(b),(c)
Dollars:
Sold		$	49,882	$	–		$		6,900		$		9,906		$		341
Reinvested			7,592		8				297				24				1
Redeemed			(35,976	)	(715	)			(2,210	)			(58	)			–
Net Increase (Decrease)		$	21,498	$	(707)			$	4,987		$		9,872		$		342
Shares:
Sold			6,772		–				936				1,357				47
Reinvested			1,029		1				40				3				–
Redeemed			(4,892	)	(96	)			(299	)			(8	)			–
Net Increase (Decrease)			2,909		(95	)			677				1,352				47

Distributions:
Year Ended October 31, 2016
From net investment income $			(9,714	)	N/A		$		(665)			$	(1,580)			$	(90	)
From net realized gain on
investments			–		N/A				–				–				–
Total Dividends and Distributions $			(9,714	)	N/A		$		(665)			$	(1,580)			$	(90	)
Year Ended October 31, 2015^(b),(c)
From net investment income $			(9,202	) $	(9)			$	(387)			$	(24)			$	(1	)
From net realized gain on
investments			–		–				–				–				–
Total Dividends and Distributions $			(9,202	) $	(9)			$	(387)			$	(24)			$	(1	)

Principal Funds, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and operates as a series fund in the mutual fund industry. The financial statements for California Municipal Fund, Core Plus Bond Fund, Diversified International Fund, Equity Income Fund, Finisterre Unconstrained Emerging Markets Bond Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, Inflation Protection Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap Growth Fund II, LargeCap S&P 500 Index Fund, LargeCap Value Fund, LargeCap Value Fund III, MidCap Fund, MidCap Growth Fund, MidCap Growth Fund III, MidCap S&P 400 Index Fund, MidCap Value Fund I, MidCap Value Fund III, Money Market Fund, Overseas Fund, Principal Capital Appreciation Fund, Principal LifeTime 2010 Fund, Principal LifeTime 2015 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2025 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2035 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2045 Fund, Principal LifeTime 2050 Fund, Principal LifeTime 2055 Fund, Principal LifeTime 2060 Fund, Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hybrid 2060 Fund, Principal LifeTime Hybrid Income Fund, Principal LifeTime Strategic Income Fund, Real Estate Securities Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Fund, SmallCap Fund, SmallCap Growth Fund I, SmallCap S&P 600 Index Fund, SmallCap Value Fund II and Tax-Exempt Bond Fund (known as the "Funds") are presented herein. The Funds may offer up to eleven classes of shares: Class A, Class C, Class J, Class P, Institutional, R-1, R-2, R-3, R-4, R-5, and R-6. Information presented in these financial statements pertains to Class J, Institutional, R-1, R-2, R-3, R-4, R-5, and R-6 classes of shares. Certain detailed financial information for Class A, Class C, and Class P 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 November 25, 2014, the initial purchases of $10,000 of Class R-6 shares of Global Real Estate Securities Fund, Income Fund, LargeCap Growth Fund I, MidCap Value Fund III, SmallCap Growth Fund I, and SmallCap Value Fund II were made by Principal Management Corporation (the “Manager”).

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

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

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

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

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

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

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

Effective August 24, 2015, the initial purchase of $10,000 of Class P shares of California Municipal Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio and Tax-Exempt Bond Fund were made by the Manager.

Effective August 24, 2015, the initial purchase of $10,000 of Class R-6 shares of Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hybrid 2060 Fund, and Principal LifeTime Hybrid Income Fund were made by the Manager.

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

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

Effective March 1, 2016, the initial purchase of $10,000 of R-3, R-4 & R-5 shares of Global Real Estate Securities Fund was made by the Manager.

Effective July 11, 2016, the initial purchases of $100,000, $100,000, and $24,800,000 of Class A, Class P, and Institutional shares, respectively, of Finisterre Unconstrained Emerging Markets Bond Fund were made by Principal Financial Services, Inc.

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. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:

Security Valuation. Principal LifeTime 2010 Fund, Principal LifeTime 2015 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2025 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2035 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2045 Fund, Principal LifeTime 2050 Fund, Principal LifeTime 2055 Fund, Principal LifeTime 2060 Fund, and Principal LifeTime Strategic Income Fund (collectively, the “Principal LifeTime Funds”), Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hybrid 2060 Fund, and Principal LifeTime Hybrid Income Fund (collectively, the “Principal LifeTime Hybrid Funds”), along with the SAM Balanced, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, and SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) invest in Institutional and R-6 shares of other series of Principal Funds, Inc. which are valued at the closing net asset value per share of each respective fund on the day of valuation. In addition, the SAM Portfolios invest in Principal Exchange-Traded Funds, which are valued at fair value. The Funds also invest in other publicly traded investment fund. Other publicly traded investment funds are valued at the respective fund’s net asset value. The shares of the other series of Principal Funds, Inc., Principal Exchange-Traded Funds and other publicly traded investment funds are referred to as the “Underlying Funds”.

The Funds (with the exception of Money Market Fund, Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and the SAM Portfolios) 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.

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

Currency Translation. Foreign holdings are translated to U.S. dollars using the exchange rate at the daily close of the New York Stock Exchange. The identified cost of the Funds’ holdings is translated at approximate rates prevailing when acquired. Income and expense amounts are translated at approximate rates prevailing when received or paid, with daily accruals of such amounts reported at approximate rates prevailing at the date of valuation. Since the carrying amount of the foreign securities is determined based on the exchange rate and market values at the close of the period, it is not practicable to isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities during the period.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions, and the difference between the amount of dividends and foreign withholding taxes recorded on the books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies arise from changes in the exchange rate relating to assets and liabilities, other than investments in securities, purchased and held in non-U.S. denominated currencies.

The following funds held securities denominated in foreign currencies that exceeded 5% of net assets of the fund:

Income and Investment Transactions. The Funds record investment transactions on a trade date basis. Trade date for senior floating rate interests purchased in the 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 (number of settled shares outstanding for Money Market Fund) of each class.

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

Management fees are allocated daily to each class of shares based upon the relative proportion of the value of shares outstanding (number of settled shares outstanding for Money Market Fund) of each class. Expenses specifically attributable to a particular class are charged directly to such class and are included separately in the statements of operations.

In addition to the expenses that each of the Principal LifeTime Funds, Principal LifeTime Hybrid Funds and SAM Portfolios bears directly, each of the Principal LifeTime Funds, Principal LifeTime Hybrid Funds and SAM Portfolios indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense levels and each of the Principal LifeTime Funds, Principal LifeTime Hybrid Funds and SAM Portfolios may own different proportions of Underlying Funds at different times, the amount of expense incurred indirectly by each of the Principal LifeTime Funds, Principal LifeTime Hybrid Funds and SAM Portfolios will vary. Expenses included in the statements of operations of the Principal LifeTime Funds, Principal LifeTime Hybrid Funds and SAM Portfolios reflect the expenses of each Principal LifeTime Fund, Principal LifeTime Hybrid Fund and SAM Portfolio and do not include any expenses associated with the Underlying Funds.

Distributions to Shareholders. With respect to Money Market Fund, all net investment income and any realized gains from investment transactions are declared as dividends daily to settled shares of record as of that day. With respect to California Municipal Fund, Core Plus Bond Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, Short-Term Income Fund and Tax-Exempt Bond Fund, net investment income is declared as dividends daily to settled shares of record as of that day, and all distributions of realized gains from investment transactions are recorded on the ex-dividend date. Dividends and distributions to shareholders of the other Funds are recorded on the ex-dividend date. Dividends and distributions to shareholders from net investment income and net realized gain from investments and foreign currency transactions are determined in accordance with federal tax regulations, which may differ from U.S. GAAP. 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.

Global Real Estate Securities Fund and Real Estate Securities Fund receive substantial distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the Funds. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates must be used in reporting the character of income and distributions for financial statement purposes.

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

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 October 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.

Gains realized upon the disposition of certain foreign securities held by certain of the Funds may be subject to capital gains tax, payable prior to repatriation of sale proceeds. The tax is computed on certain net realized gains and, if any, is shown on the statement of operations. Realized losses in excess of gains may be carried forward to offset future gains. In addition, the Funds accrue an estimated deferred tax liability for future gains on certain foreign securities. Any accrued tax liability is shown on the statement of assets and liabilities. At October 31, 2016, Diversified International Fund had no foreign tax refund receivable and had a deferred tax liability of $1,521,000 and International Emerging Markets Fund had a foreign tax refund receivable of $1,248,000 and had a deferred tax liability of $1,879,000 relating to foreign securities.

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.

Investment Company Reporting Modernization. Effective October 13, 2016, the U.S. Securities and Exchange Commission (“SEC”) approved a final rule, Investment Company Reporting Modernization. The SEC adopted new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The new rules and forms will be effective beginning in 2018. 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%). During the year ended October 31, 2016, Core Plus Bond Fund, Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap Growth Fund II, LargeCap S&P 500 Index Fund, LargeCap Value Fund, LargeCap Value Fund III, MidCap Fund, MidCap Growth Fund, MidCap Growth Fund III, MidCap S&P 400 Index Fund, MidCap Value Fund I, MidCap Value Fund III, Overseas Fund, Principal Capital Appreciation Fund, Real Estate Securities Fund, Short-Term Income Fund, SmallCap Fund, SmallCap Growth Fund I, SmallCap S&P 600 Index Fund, and SmallCap Value Fund II each loaned to the Facility. The interest income received is included in interest income on the statements of operations.

During the year ended October 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 October 31, 2016, Global Diversified Income Fund borrowed against the line of credit. The average outstanding balance for the liability during the year ended October 31, 2016 was $25,000 at a weighted average interest rate of 1.02%. The interest expense associated with these borrowings is included in other expenses on the statements of operations. There were no outstanding borrowings as of October 31, 2016.

Credit Linked Notes. Global Diversified Income Fund invests in structured notes whose market values are primarily derived from changes in the value of various credit indices and other factors. Valuations on these securities may be volatile as the payment features on certain notes may contain attributes that multiply the effects of changes in the values of the underlying indices. Structured notes may entail a greater degree of market risk than other types of debt securities. Structured notes may also be more volatile, less liquid, and more difficult to accurately price than less complex securities or more traditional debt securities. Fluctuations in 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.

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

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


Fund: Core Plus Bond Fund
Financial Derivative Instruments: Over the Counter (“OTC”) Summary

							Counterparty
		Brown Brothers
		Harriman & Co					Goldman Sachs & Co					JP Morgan Chase									Total
Assets*
Foreign Currency Contracts	$	1,335				$	122							$	4					$	1,461
Total OTC	$	1,335				$	122							$	4					$	1,461

Liabilities*
Foreign Currency Contracts	$	(1	)			$	—							$	(3	)				$	(4	)
Total OTC	$	(1	)			$	—							$	(3	)				$	(4	)

Net Market Value of OTC Derivatives	$	1,334				$	122							$	1					$	1,457
Collateral (Received)/Pledged		—					—								—						—
Net Exposure	$	1,334				$	122							$	1					$	1,457

Fund: Finisterre Unconstrained Emerging Markets Bond Fund
Financial Derivative Instruments: OTC Summary

							Counterparty
		Bank of													Stifel
		New York Mellon					Citigroup		HSBC						Nicolaus & Company						Total
Assets*
Credit Default Swaps	$	—				$	229	$	51					$	—					$	280
Foreign Currency Contracts		—					—		—						22						22
Total OTC	$	—				$	229	$	51					$	22					$	302

Liabilities*
Credit Default Swaps	$	—				$	—	$	(50	)				$	—					$	(50	)
Foreign Currency Contracts		(10	)				—		—						(9	)					(19	)
Total OTC	$	(10	)			$	—	$	(50	)				$	(9	)				$	(69	)

Net Market Value of OTC
Derivatives	$	(10	)			$	229	$	1					$	13					$	233
Collateral (Received)/Pledged		—					—		—						—						—
Net Exposure	$	(10	)			$	229	$	1					$	13					$	233

Fund: Global Diversified Income Fund
Financial Derivative Instruments: OTC Summary

							Counterparty
															Standard
															Chartered			Toronto
							Goldman					JP Morgan			Bank –			Dominion
		Bank of America			Barclays		Sachs & Co		HSBC			Chase			Hong Kong			Bank			Total
Assets*
Foreign Currency Contracts	$	—		$	107	$	1,517	$	1		$	5,314		$	68		$	—		$	7,007
Total OTC	$	—		$	107	$	1,517	$	1		$	5,314		$	68		$	—		$	7,007

Liabilities*
Credit Default Swaps	$	—		$	—	$	—	$	—		$	(511	)	$	—		$	—		$	(511	)
Foreign Currency Contracts		(211	)		—		—		(14	)		(1,490	)		(149	)		(174	)		(2,038	)
Total OTC	$	(211	)	$	—	$	—	$	(14	)	$	(2,001	)	$	(149	)	$	(174	)	$	(2,549	)

Net Market Value of OTC
Derivatives	$	(211	)	$	107	$	1,517	$	(13	)	$	3,313		$	(81	)	$	(174	)	$	4,458
Collateral (Received)/Pledged		—			—		—		—			(3,120	)^		—			—			(3,120	)^
Net Exposure	$	(211	)	$	107	$	1,517	$	(13	)	$	193		$	(81	)	$	(174	)	$	1,338


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


3. Operating Policies (Continued)

Fund: High Yield Fund
Financial Derivative Instruments: OTC Summary

					Counterparty
					Brown Brothers
					Harriman & Co.
Asset*
Foreign Currency Contracts							$	766
Collateral (Received)/Pledged								—
Net Exposure							$	766

Fund: Inflation Protection Fund
Financial Derivative Instruments: OTC Summary

		Bank			Barclays								Commonwealth											Royal					Westpac
		of			Bank			BNP					Bank of		Deutsche			Goldman						Bank of					Banking
		America			PLC			Paribas		Citigroup			Australia		Bank AG			Sachs			HSBC			Scotland		UBS AG			Corp		Total
Assets*
Foreign Currency
Contracts	$	—		$	627		$	—	$	—		$	237	$	72		$	—		$	—		$	199	$	740		$	2	$	1,877
Foreign Currency Options		—			1,807			19		18			—		961			—			526			—		163			—	$	3,494
Interest Rate Swaps		—			772			—		—			—		—			—			—			—		—			—		772
Purchased Interest Rate
Swaptions		—			9			—		—			—		5,461			—			—			—		—			—		5,470
Total OTC	$	—		$	3,215		$	19	$	18		$	237	$	6,494		$	—		$	526		$	199	$	903		$	2	$	11,613

Liabilities*
Foreign Currency
Contracts	$	(78	)	$	—		$	—	$	—		$	—	$	(30	)	$	(22	)	$	—		$	—	$	—		$	—	$	(130	)
Foreign Currency Options		—			(683	)		—		(693	)		—		(1,850	)		—			(4	)		—		(42	)		—		(3,272	)
Interest Rate Swaps		—			(176	)		—		—			—		—			—			—			—		—			—		(176	)
Written Interest Rate
Swaptions		—			—			—		—			—		(3,058	)		—			—			—		—			—		(3,058	)
Total OTC	$	(78	)	$	(859	)	$	—	$	(693	)	$	—	$	(4,938	)	$	(22	)	$	(4	)	$	—	$	(42	)	$	—	$	(6,636	)

Net Market Value of OTC
Derivatives	$	(78	)	$	2,356		$	19	$	(675	)	$	237	$	1,556		$	(22	)	$	522		$	199	$	861		$	2	$	4,977
Collateral
(Received)/Pledged		—			—			—		—			—		(1,556	)^		—			—			—		—			—		(1,556	)^
Net Exposure	$	(78	)	$	2,356		$	19	$	(675	)	$	237	$	—		$	(22	)	$	522		$	199	$	861		$	2	$	3,421

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

^ The 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.

Deposits with Counterparty. Cash pledged as collateral is reflected as an asset on the statement of assets and liabilities as deposits with counterparty. There are a variety of security types which require varying levels of pledged collateral. Customer Account Agreements govern cleared derivatives transactions such as futures contracts and certain swap agreements. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission. International Swaps and Derivatives Association (“ISDA”) accounts are maintained in a segregated account at the custodian for OTC Derivatives. Certain funds may pledge cash to a broker for securities sold short.

For the year ended October 31, 2016, deposits with counterparty were as follows (amounts in thousands):

Floating Rate Notes Issued in Conjunction with Securities Held. California Municipal Fund and Tax-Exempt Bond Fund have entered into transactions in which a fund transfers fixed rate bonds to trusts in exchange for cash and residual interests in the trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties. The fund enters into shortfall and forbearance agreements with the trusts, which commit the fund to pay the trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the fund (inverse floating rate securities) include the right of the fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the fixed rate bond from the trusts to the fund, thereby collapsing the trusts. The fund accounts for the transfer of bonds to the trusts as secured borrowings, with the securities transferred remaining in the fund’s investment assets, and the related floating rate notes reflected as fund liabilities under the caption “floating rate notes issued” in the statement of assets and liabilities. The balances of the floating rate notes issued as of October 31, 2016 were $18,241,000 and $9,470,000 for California Municipal Fund and Tax-Exempt Bond Fund, respectively. The average outstanding balances for the liability during the year ended October 31, 2016 were $13,797,000 and $8,148,000 at weighted average interest rates of 1.14% and 1.07% for California Municipal Fund and Tax-Exempt Bond Fund, respectively. 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 the Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and SAM Portfolios) 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.

Mortgage Dollar Rolls. Certain of the Funds have entered into mortgage-dollar-roll transactions on “to-be-announced” securities (“TBA’s”), in which the Funds sell mortgage-backed securities and simultaneously agree to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are invested in additional securities. The Funds forgo principal and interest paid on the securities, and are compensated by interest earned on the proceeds of the initial sale and by a lower price on the securities to be repurchased. The Funds treat mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the Funds’ portfolio turnover ratio. Amounts to be received or paid in connection with open mortgage-dollar-rolls are included in Investment securities sold and Investment securities purchased on the statements of assets and liabilities.

Options Contracts. During the period Global Diversified Income Fund, and Inflation Protection Fund wrote call and put options on futures, swaps, securities, indices and currencies they own or in which they may invest and inflation floors for both hedging and non-hedging purposes. Writing put options tends to increase a fund’s exposure to the underlying instrument. Writing call options tends to decrease a fund’s exposure to the underlying instrument. When a fund writes a call, a put option, or an inflation floor, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. An inflation floor can give downside protection to investments in inflation-linked products. These liabilities are reflected as options contracts written on the statements of assets and liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security, index or currency transaction to determine the realized gain or loss. A fund, as a writer of an option, has no control over whether the underlying future, swap, security, index or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, swap, security, index or currency underlying the written option. There is the risk a fund may not be able to enter into a closing transaction because of an illiquid market. A fund may also purchase put and call options. Purchasing call options tends to increase a fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a fund’s exposure to the underlying instrument. A fund pays a premium which is included on the fund’s statements of assets and liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future, swap, security, index or currency transaction to determine the realized gain or loss. Details of options contracts open at year end are included in the Funds' schedules of investments. Transactions in options written during the year ended October 31, 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.

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.

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 October 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 October 31, 2016, the Funds had no unfunded loan commitments outstanding.

Short Sales. Global Diversified Income Fund entered into short sales transactions during the period. A short sale is a transaction in which a fund sells a security it does not own as a hedge against some of its long positions and/or in anticipation of a decline in the market price of the security. The fund must borrow the security sold short and deliver it to the broker dealer which made the short sale. A security sold in a short sale transaction and the interest or dividend payable on the security if any, is reflected as a liability on the statement of assets and liabilities. The fund is obligated to pay any interest or dividends received on the borrowed securities. Interest accrued and dividends declared on short positions are recorded as an expense and appear as dividends and interest on shorts on the statement of operations. A fund is obligated to deliver the security at the market price at the time the short position is closed. Possible losses from short sales may be unlimited.

The fund is required to pledge cash or securities to the broker as collateral for securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with the broker for collateral is included in deposits with counterparty on the statement of assets and liabilities and securities segregated as collateral are footnoted in the schedule of investments. The fund may pay broker’s fees on the borrowed securities and may also pay a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. These fees are included as short sale fees on the statement of operations.

Swap Agreements. Core Plus Bond Fund, Finisterre Unconstrained Emerging Markets Bond Fund, Global Diversified Income Fund, High Yield Fund, and Inflation Protection Fund invested in swap agreements during the period. Swap agreements are privately negotiated agreements between a fund and a counterparty to exchange a series of cash flows at specified intervals based upon, or calculated by reference to, changes in specified prices or rates for a specified amount of an underlying asset. A fund may enter into credit default, interest rate, or total return swap agreements to manage its exposure to credit, interest rate, or market risk. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swap agreements are valued through a pricing service or using procedures established and periodically reviewed by the Fund’s Board of Directors; changes in value are recorded as unrealized gain or loss. These unrealized gains or losses are included as a component of net unrealized appreciation (depreciation) of investments on the statements of assets and liabilities.

Upon termination of swap agreements, the Funds recognize a realized gain or loss. Net periodic payments to be received or paid are accrued daily and are recorded in the statements of operations as realized gains or losses.

Payments received or made at the beginning of the measurement period are reflected as such on the statements of assets and liabilities and represent payments made or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, interest rates, and other relevant factors). These upfront payments are amortized daily over the term of the swap agreement as realized gains or losses on the statements of operations.

Notional principal amounts are used to express the extent of involvement in these agreements. Risks may exceed amounts shown on the statements of assets and liabilities. These risks include changes in the returns of the underlying instruments, unfavorable interest rate fluctuation, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and the possible lack of liquidity with respect to the swap agreements.

The Funds and any counterparty are required to maintain an agreement that requires the Funds and that counterparty to monitor the net fair value of all derivative transactions entered into pursuant to the contract between the Funds and such counterparty. If the net fair value of such derivatives transactions between the Funds and that counterparty exceeds a certain threshold (as defined in the agreement), the Funds or the counterparty are required to post cash and/or securities as collateral. Fair values of derivatives transactions presented in the financial statements are not netted with the fair values of other derivatives transactions or with any collateral amounts posted by the Funds or any counterparty.

Credit default swaps involve commitments to pay a fixed rate at a predetermined frequency in exchange for a lump sum payment if a “credit event”, as defined in the agreement, affecting a third party occurs. Credit events may include a failure to pay interest, bankruptcy, restructuring, or other event as defined in the agreement. A “buyer” of credit protection agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of a credit event. The “seller” of the protection receives periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of a credit event. As the seller of credit protection, a Fund would add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.

If a fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds with a credit default swap on indices which is less expensive than it would be to buy many credit default 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 October 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.

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

As of October 31, 2016, counterparties had pledged collateral for swap agreements of $5,130,000 for Global Diversified Income Fund and $2,450,000 for Inflation Protection Fund. The collateral is maintained in a segregated account and is not recorded in the books and records of the funds. Certain collateral amounts relate to exchange cleared swaps which are not subject to master netting agreements with counterparties.

To Be Announced Securities. The Funds may trade portfolio securities on a “to-be-announced” (“TBA”) or when-issued basis. In a TBA or when-issued transaction, the Funds commit to purchase or sell securities for which all specific information is not known at the time of the trade. Securities purchased on a TBA or when-issued basis are not settled until they are delivered to the Funds, normally 15 to 30 days later. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other portfolio securities.

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

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

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

As of October 31, 2016, the SAM Portfolios, Principal LifeTime Funds, Principal LifeTime Hybrid Funds, Real Estate Allocation Fund, PVC SAM Portfolios, PVC Principal LifeTime Accounts, PVC Diversified Balanced Account, PVC Diversified Balanced Managed Volatility Account, PVC Diversified Growth Account, PVC Diversified Growth Managed Volatility Account, PVC Diversified Income Account, and PVC Multi-Asset Income Account, owned the following percentages, in the aggregate, of the outstanding shares of the underlying funds listed below:

U.S. Government Agencies or Government-Sponsored Enterprises. Certain of the Funds may invest in U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of, and in certain cases, guaranteed by, the U.S. Government or its agencies. The U.S. Government does not guarantee the net asset value of the Funds’ shares. Some U.S. Government securities such as treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA”) are supported by the full faith and credit of the U.S. Government. Other securities, such as those of the Federal Home Loan Bank are supported by the right of the issuer to borrow from the U.S. Department of the Treasury. Still other securities, such as those of the Federal National Mortgage Association (“FNMA”) are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations.

Government related guarantors (those not backed by the full faith and credit of the United States Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC”). FNMA is a government sponsored corporation, the common stock of which is owned entirely by private stockholders. FNMA purchases conventional residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks, credit unions, and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to the timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but Participation Certificates are not backed by the full faith and credit of the U.S. Government.

Derivatives. The following tables provide information about where in the statements of assets and liabilities and statements of operations information about derivatives can be found (amounts in thousands):


	Asset Derivatives October 31, 2016			Liability Derivatives October 31, 2016
Derivatives not accounted for			Fair			Fair
as hedging instruments	Statement of Assets and Liabilities Location		Value	Statement of Assets and Liabilities Location		Value
Core Plus Bond Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	909^*	Payables, Net Assets Consist of Net unrealized	$	1,048	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	1,461	Payables	$	4
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	374^*	Payables, Net Assets Consist of Net unrealized	$	1,186	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	2,744		$	2,238
Finisterre Unconstrained Emerging Markets Bond Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	280	Payables, Net Assets Consist of Net unrealized	$	50
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	22	Payables	$	19
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	27^*	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	329		$	69
Global Diversified Income Fund
Credit contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	511
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	1,761	Payables, Net Assets Consist of Net unrealized	$	21,574
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	7,007	Payables	$	2,038
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	56^*	Payables, Net Assets Consist of Net unrealized	$	—
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	8,824		$	24,123
High Yield Fund
Foreign exchange contracts	Receivables	$	766	Payables	$	—

Inflation Protection Fund
Foreign exchange contracts	Receivables	$	5,371	Payables	$	3,402
Interest rate contracts	Receivables, Net Assets Consist of Net unrealized	$	11,310^*	Payables, Net Assets Consist of Net unrealized	$	4,516	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
		Total$	16,681		$	7,918
International Fund I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	13	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap Growth Fund I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	2,367	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap Growth Fund II
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	225	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Foreign exchange contracts	Receivables	$	36	Payables	$	2
		Total$	36		$	227
LargeCap S&P 500 Index Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	191	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
LargeCap Value Fund III
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	1,112	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
MidCap Growth Fund III
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	886	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
MidCap S&P 400 Index Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	238	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments


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


3. Operating Policies (Continued)

	Asset Derivatives October 31, 2016			Liability Derivatives October 31, 2016
Derivatives not accounted for			Fair			Fair
as hedging instruments	Statement of Assets and Liabilities Location		Value	Statement of Assets and Liabilities Location		Value
MidCap Value Fund I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	565	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
MidCap Value Fund III
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	1,112	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
Overseas Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	1,676	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
SmallCap Growth Fund I
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	3,467	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
SmallCap S&P 600 Index Fund
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	322	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments
SmallCap Value Fund II
Equity contracts	Receivables, Net Assets Consist of Net unrealized	$	—	Payables, Net Assets Consist of Net unrealized	$	2,943	^*
	appreciation (depreciation) of investments			appreciation (depreciation) of investments

*Includes cumulative unrealized appreciation/depreciation of exchange cleared swaps and futures contracts as shown in the schedules of investments. Only the portion of the unrealized appreciation/depreciation not yet cash settled is shown in the statements of assets and liabilities as variation margin.


					Change in Unrealized
					Appreciation/(Depreciation) of
Derivatives not accounted for	Location of Gain or (Loss) on Derivatives		Realized Gain or (Loss) on Derivatives		Derivatives Recognized in Statement
as hedging instruments	Recognized in Statement of Operations		Recognized in Statement of Operations		of Operations
Core Plus Bond Fund
Credit contracts	Net realized gain (loss) from Swap	$	(8,678	)	$	(125	)
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	(222	)	$	1,311
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
Interest rate contracts	Net realized gain (loss) from Futures	$	6,069		$	(695	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
	Total	$	(2,831	)	$	491
Finisterre Unconstrained Emerging Markets Bond Fund
Credit contracts	Net realized gain (loss) from Swap	$	(34	)	$	20
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	81		$	3
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
Interest rate contracts	Net realized gain (loss) from Futures	$	7		$	27
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
	Total	$	54		$	50


	NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 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
Global Diversified Income Fund
Credit contracts	Net realized gain (loss) from Swap	$	2,316		$	1,709
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Equity contracts	Net realized gain (loss) from Investment	$	29,398		$	22,280
	transactions and Options and
	swaptions/Change in unrealized
	appreciation/(depreciation) of Investments
	and Options and swaptions
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	17,577		$	(1,053	)
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
Interest rate contracts	Net realized gain (loss) from Futures	$	(129	)	$	56
	contracts and Swap agreements/Change in
	unrealized appreciation/(depreciation) of
	Futures contracts
	Total	$	49,162		$	22,992
High Yield Fund
Credit contracts	Net realized gain (loss) from Swap	$	(497	)	$	(287	)
	agreements/Change in unrealized
	appreciation/(depreciation) of Swap
	agreements
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	40		$	228
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
	Total	$	(457	)	$	(59	)
Inflation Protection Fund
Foreign exchange contracts	Net realized gain (loss) from Investment	$	(17,311	)	$	1,790
	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	$	(15.069	)	$	7,172
	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	$	(32,380	)	$	8,962
International Fund I
Equity contracts	Net realized gain (loss) from Futures	$	(753	)	$	(1,016	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap Growth Fund I
Equity contracts	Net realized gain (loss) from Futures	$	20,755		$	(14,733	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
LargeCap Growth Fund II
Equity contracts	Net realized gain (loss) from Futures	$	1,990		$	(819	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
Foreign exchange contracts	Net realized gain (loss) from Foreign	$	25		$	34
	currency transactions/Change in unrealized
	appreciation/(depreciation) of Translation of
	assets and liabilities in foreign currencies
	Total	$	2,015		$	(785	)
LargeCap S&P 500 Index Fund
Equity contracts	Net realized gain (loss) from Futures	$	9,599		$	(4,943	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts


	NOTES TO FINANCIAL STATEMENTS
PRINCIPAL FUNDS, INC.
October 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
LargeCap Value Fund III
Equity contracts	Net realized gain (loss) from Futures	$	9,128		$	(5,319	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
MidCap Growth Fund III
Equity contracts	Net realized gain (loss) from Futures	$	5,698		$	(3,085	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
MidCap S&P 400 Index Fund
Equity contracts	Net realized gain (loss) from Futures	$	1,003		$	(399	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
MidCap Value Fund I
Equity contracts	Net realized gain (loss) from Futures	$	8,819		$	(1,641	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
MidCap Value Fund III
Equity contracts	Net realized gain (loss) from Futures	$	6,005		$	(2,615	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
Overseas Fund
Equity contracts	Net realized gain (loss) from Futures	$	7,342		$	(4,908	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap Fund
Equity contracts	Net realized gain (loss) from Futures	$	(16	)	$	(13	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap Growth Fund I
Equity contracts	Net realized gain (loss) from Futures	$	9,153		$	(4,371	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap S&P 600 Index Fund
Equity contracts	Net realized gain (loss) from Futures	$	3,476		$	(520	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts
SmallCap Value Fund II
Equity contracts	Net realized gain (loss) from Futures	$	12,076		$	(4,284	)
	contracts/Change in unrealized
	appreciation/(depreciation) of Futures
	contracts

Long equity futures contracts are used to obtain market exposure for the cash balances that are maintained by certain of the Funds and the notional values of the futures contracts will vary in accordance with changing cash balances. Long and short U.S. Treasury futures contracts are used to obtain interest rate exposure in order to manage duration of Core Plus Bond Fund, Finisterre Unconstrained Emerging Markets Bond Fund, Global Diversified Income Fund and Inflation Protection Fund. 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 October 31, 2016:


			Average Notional
			(in thousands) or
Contract Type	Derivative Type		Number of Contracts
Core Plus Bond Fund
Credit Contracts	Exchange Cleared Credit Default Swaps - Buy Protection	$	142,238
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	306
	Foreign Currency Contracts - Contracts to Deliver	$	43,046
Interest Rate Contracts	Futures - Long	$	92,712
	Futures - Short	$	65,698
Finisterre Unconstrained Emerging
Markets Bond Fund
Credit Contracts	Credit Default Swaps - Buy Protection	$	5,375
	Credit Default Swaps - Sell Protection	$	2,350
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	1,523
	Foreign Currency Contracts - Contracts to Deliver	$	3,680
Interest Rate Contracts	Futures - Short	$	4,620
Global Diversified Income Fund
Credit Contracts	Credit Default Swaps - Sell Protection	$	13,975
Equity Contracts	Purchased Options		13,749
	Written Options		159,057
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	270,570
	Foreign Currency Contracts - Contracts to Deliver	$	625,564
Interest Rate Contracts	Futures - Short	$	69,105
High Yield Fund
Credit Contracts	Exchange Cleared Credit Default Swaps - Sell Protection	$	25,000
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Deliver	$	29,990
Inflation Protection Fund
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	78,308
	Foreign Currency Contracts - Contracts to Deliver	$	240,100
	Purchased Options		424,771,250
	Written Options		319,615,000
Interest Rate Contracts	Exchange Cleared Interest Rate Swaps - Pay Floating Rate	$	51,665
	Exchange Cleared Interest Rate Swaps - Receive Floating Rate	$	110,044
	Futures - Long	$	254,251
	Futures - Short	$	271,544
	Interest Rate Swaps - Pay Floating Rate	$	34,658
	Interest Rate Swaps - Receive Floating Rate	$	49,962
	Purchased Capped Options	$	71,000
	Purchased Interest Rate Swaptions	$	50,244
	Purchased Options		3,303
	Written Interest Rate Swaptions	$	247,090
	Written Options		4,502
International Fund I
Equity Contracts	Futures - Long	$	9,990


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

3. Operating Policies (Continued)

			Average Notional
			(in thousands) or
Contract Type	Derivative Type		Number of Contracts
LargeCap Growth Fund I
Equity Contracts	Futures - Long	$	176,719
LargeCap Growth Fund II
Equity Contracts	Futures - Long	$	20,976
Foreign Exchange Contracts	Foreign Currency Contracts - Contracts to Accept	$	81
	Foreign Currency Contracts - Contracts to Deliver	$	1,714
LargeCap S&P 500 Index Fund
Equity Contracts	Futures - Long	$	40,939
LargeCap Value Fund III
Equity Contracts	Futures - Long	$	68,847
MidCap Growth Fund III
Equity Contracts	Futures - Long	$	65,257
MidCap S&P 400 Index Fund
Equity Contracts	Futures - Long	$	20,208
MidCap Value Fund I
Equity Contracts	Futures - Long	$	49,023
MidCap Value Fund III
Equity Contracts	Futures - Long	$	51,009
Overseas Fund
Equity Contracts	Futures - Long	$	123,180
SmallCap Growth Fund I
Equity Contracts	Futures - Long	$	88,189
SmallCap S&P 600 Index Fund
Equity Contracts	Futures - Long	$	18,961
SmallCap Value Fund II
Equity Contracts	Futures - Long	$	78,812

Fair value is defined as the price that the Funds would receive upon selling a security in a timely transaction to an independent buyer in the principal or most advantageous market of the security at the measurement date. In determining fair value, the Funds use various valuation approaches, including market, income and/or cost approaches. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

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

Level 1 – Quoted prices are available in active markets for identical securities as of the reporting date. The type of securities included in Level 1 includes listed equities and listed derivatives.

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

Level 3 – Significant unobservable inputs (including the Funds’ assumptions in determining the fair value of investments.) Investments which are generally included in this category include certain corporate bonds and certain mortgage backed securities.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the market place, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Funds in determining fair value is greatest for instruments categorized in Level 3.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market based measure considered from the perspective of a market participant who holds the asset rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Funds use prices and inputs that are current as of the measurement date.

Investments which are generally included in the Level 3 category are primarily valued using quoted prices from brokers and dealers participating in the market for these investments. These investments are classified as Level 3 investments due to the lack of market transparency and market corroboration to support these quoted prices. Valuation models may be used as the pricing source for other investments classified as Level 3. Valuation models rely on one or more significant unobservable inputs such as prepayment rates, probability of default, or loss severity in the event of default. Significant increases in any of those inputs in isolation would result in a significantly lower fair value measurement. Benchmark pricing procedures set the base price of a security based on current market data. The base price may be a broker-dealer quote, transaction price, or internal value based on relevant market data.

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

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

The Pricing Group relies on externally provided 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. For example, short-term securities held in Money Market Fund are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of these securities, but because the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The beginning of the period timing recognition has been adopted for the significant transfers between levels of each Fund’s assets and liabilities. There were no significant purchases, sales, or transfers into or out of Level 3, except as noted in the Level 3 roll forward. The table below includes transfers from Level 1 to Level 2 as of October 31, 2016 due to lack of exchange traded valuation data:

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

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


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

California Municipal Fund
Municipal Bonds*	$	—		$	472,686		$	—	$	472,686
Total investments in securities $		—		$	472,686		$	—	$	472,686

Core Plus Bond Fund
Bonds*	$	—		$	2,730,331		$	—	$	2,730,331
Common Stocks*		1,464			—			—		1,464
Convertible Bonds*		—			518			—		518
Investment Companies*		89,113			—			—		89,113
Preferred Stocks
Communications		1,340			—			—		1,340
Financial		11,254			3,676			—		14,930
Utilities		1,435			—			—		1,435
Senior Floating Rate Interests*		—			83,940			—		83,940
U.S. Government & Government Agency Obligations*		—			1,400,184			—		1,400,184
Total investments in securities $		104,606		$	4,218,649		$	—	$	4,323,255
Assets
Credit Contracts**
Exchange Cleared Credit Default Swaps	$	—		$	909		$	—	$	909
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	1,461		$	—	$	1,461
Interest Rate Contracts**
Futures	$	374		$	—		$	—	$	374
Liabilities
Credit Contracts**
Exchange Cleared Credit Default Swaps	$	—		$	(1,048	)	$	—	$	(1,048	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(4	)	$	—	$	(4	)
Interest Rate Contracts**
Futures	$	(1,186	)	$	—		$	—	$	(1,186	)


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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 International Fund
Common Stocks
Basic Materials	$	92,440	$	269,556		$	—	$	361,996
Communications		75,540		828,306			—		903,846
Consumer, Cyclical		307,150		951,671			—		1,258,821
Consumer, Non-cyclical		165,366		1,102,365			—		1,267,731
Diversified		—		54,111			—		54,111
Energy		162,311		317,941			—		480,252
Financial		499,798		1,218,505			—		1,718,303
Industrial		82,243		742,087			—		824,330
Technology		74,043		553,967			—		628,010
Utilities		—		226,424			—		226,424
Investment Companies*		175,783		—			—		175,783
Preferred Stocks		73,918		—			—		73,918
Total investments in securities $		1,708,592	$	6,264,933		$	—	$	7,973,525

Equity Income Fund
Common Stocks*	$	5,315,192	$	—		$	—	$	5,315,192
Investment Companies*		71,079		—			—		71,079
Total investments in securities $		5,386,271	$	—		$	—	$	5,386,271

Finisterre Unconstrained Emerging Markets Bond Fund
Bonds*	$	—	$	23,461		$	265	$	23,726
Convertible Bonds*		—		401			—		401
Total investments in securities $		—	$	23,862		$	265	$	24,127
Assets
Credit Contracts**
Credit Default Swaps	$	—	$	280		$	—	$	280
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—	$	22		$	—	$	22
Interest Rate Contracts**
Futures	$	27	$	—		$	—	$	27

Liabilities
Credit Contracts**
Credit Default Swaps	$	—	$	(50	)	$	—	$	(50	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—	$	(19	)	$	—	$	(19	)

Global Diversified Income Fund
Bonds*	$	—	$	7,327,148		$	65,591	$	7,392,739
Common Stocks
Basic Materials		9,576		11,631			—		21,207
Communications		131,526		9,007			—		140,533
Consumer, Cyclical		36,524		43,590			120		80,234
Consumer, Non-cyclical		141,199		93,304			—		234,503
Diversified		—		17,474			—		17,474
Energy		224,305		25,629			—		249,934
Financial		477,842		331,541			—		809,383
Government		1,503		—			—		1,503
Industrial		69,672		112,833			—		182,505
Technology		57,742		29,205			5,833		92,780
Utilities		376,628		100,455			—		477,083
Convertible Bonds*		—		17,882			3,305		21,187
Convertible Preferred Stocks
Financial		5,092		—			—		5,092
Credit Linked Structured Notes*		—		—			3,327		3,327
Investment Companies*		374,540		—			—		374,540
Preferred Stocks
Communications		8,521		14,042			—		22,563
Consumer, Non-cyclical		—		1,048			—		1,048
Financial		116,313		25,027			—		141,340
Industrial		13,536		—			80		13,616
Utilities		15,207		—			—		15,207
Senior Floating Rate Interests*		—		776,986			26,817		803,803
U.S. Government & Government Agency Obligations*		—		97,833			—		97,833
Purchased Options		1,761		—			—		1,761
Total investments in securities $		2,061,487	$	9,034,635		$	105,073	$	11,201,195


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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 Diversified Income Fund (Continued)
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	7,007		$	—	$	7,007
Interest Rate Contracts**
Futures	$	56		$	—		$	—	$	56
Liabilities
Credit Contracts**
Credit Default Swaps	$	—		$	(511	)	$	—	$	(511	)
Equity Contracts**
Options	$	(21,574	)	$	—		$	—	$	(21,574	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(2,038	)	$	—	$	(2,038	)

Global Real Estate Securities Fund
Common Stocks
Consumer, Cyclical	$	16,003		$	13,127		$	—	$	29,130
Financial		1,627,966			1,405,021			—		3,032,987
Technology		22,953			—			—		22,953
Investment Companies*		44,873			—			—		44,873
Total investments in securities $		1,711,795		$	1,418,148		$	—	$	3,129,943

Government & High Quality Bond Fund
Bonds*	$	—		$	455,240		$	—	$	455,240
Investment Companies*		22,785			—			—		22,785
U.S. Government & Government Agency Obligations*		—			1,074,105			—		1,074,105
Total investments in securities $		22,785		$	1,529,345		$	—	$	1,552,130

High Yield Fund
Bonds*	$	—		$	3,141,844		$	—	$	3,141,844
Common Stocks
Basic Materials		1,714			—			—		1,714
Consumer, Non-cyclical		—			—			32		32
Energy		9,301			—			—		9,301
Technology		—			—			—		—
Convertible Bonds*		—			11,165			—		11,165
Investment Companies*		181,202			—			—		181,202
Senior Floating Rate Interests*		—			219,569			—		219,569
Total investments in securities $		192,217		$	3,372,578		$	32	$	3,564,827
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	766		$	—	$	766

High Yield Fund I
Bonds*	$	—		$	858,188		$	54	$	858,242
Common Stocks
Communications		191			—			—		191
Consumer, Cyclical		—			1			—		1
Energy		—			—			184		184
Industrial		—			—			—		—
Utilities		2,574			11			—		2,585
Convertible Bonds*		—			240			62		302
Investment Companies*		27,065			—			—		27,065
Preferred Stocks
Financial		—			1,529			—		1,529
Industrial		—			—			—		—
Senior Floating Rate Interests*		—			66,316			—		66,316
Total investments in securities $		29,830		$	926,285		$	300	$	956,415

Income Fund
Bonds*	$	—		$	2,050,112		$	15,652	$	2,065,764
Common Stocks
Energy		3,116			—			—		3,116
Financial		—			—			2		2
Industrial		—			—			—		—
Technology		—			—			—		—
Investment Companies*		131,841			—			—		131,841
Senior Floating Rate Interests*		—			7,000			—		7,000
U.S. Government & Government Agency Obligations*		—			1,094,651			—		1,094,651
Total investments in securities $		134,957		$	3,151,763		$	15,654	$	3,302,374


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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)

Inflation Protection Fund
Bonds*	$	—		$	73,490		$	—	$	73,490
Investment Companies*		28,155			—			—		28,155
U.S. Government & Government Agency Obligations*		—			1,704,160			—		1,704,160
Purchased Interest Rate Swaptions		—			5,470			—		5,470
Purchased Capped Options		—			—			—		—
Purchased Options		634			3,494			—		4,128
Total investments in securities $		28,789		$	1,786,614		$	—	$	1,815,403
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	1,877		$	—	$	1,877
Interest Rate Contracts**
Exchange Cleared Interest Rate Swaps	$	—		$	1,581		$	—	$	1,581
Futures		2,853			—			—		2,853
Interest Rate Swaps		—			772			—		772
Liabilities
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(130	)	$	—	$	(130	)
Written Options		—			(3,272	)		—		(3,272	)
Interest Rate Contracts**
Futures	$	(1,282	)	$	—		$	—	$	(1,282	)
Interest Rate Swaps		—			(176	)		—		(176	)
Interest Rate Swaptions		—			(3,058	)		—		(3,058	)

International Emerging Markets Fund
Common Stocks
Basic Materials	$	11,270		$	39,678		$	—	$	50,948
Communications		35,246			137,456			—		172,702
Consumer, Cyclical		16,811			74,607			—		91,418
Consumer, Non-cyclical		33,501			46,780			—		80,281
Diversified		—			3,675			—		3,675
Energy		—			94,036			—		94,036
Financial		23,009			182,982			—		205,991
Industrial		14,669			43,648			—		58,317
Technology		14,084			131,537			—		145,621
Utilities		6,797			17,251			—		24,048
Investment Companies*		4,977			—			—		4,977
Preferred Stocks
Basic Materials		11,801			—			—		11,801
Communications		—			720			—		720
Diversified		18,071			—			—		18,071
Financial		15,758			—			—		15,758
Total investments in securities $		205,994		$	772,370		$	—	$	978,364

International Fund I
Common Stocks
Basic Materials	$	—		$	19,951		$	—	$	19,951
Communications		7,672			39,288			—		46,960
Consumer, Cyclical		4,481			68,447			—		72,928
Consumer, Non-cyclical		8,823			61,392			—		70,215
Diversified		—			3,470			—		3,470
Energy		—			9,962			—		9,962
Financial		—			34,890			—		34,890
Industrial		9,010			44,963			—		53,973
Technology		21,324			40,766			—		62,090
Utilities		—			6,940			—		6,940
Investment Companies*		5,488			—			—		5,488
Total investments in securities $		56,798		$	330,069		$	—	$	386,867
Liabilities
Equity Contracts**
Futures	$	(13	)	$	—		$	—	$	(13	)

LargeCap Growth Fund
Common Stocks*	$	1,968,725		$	—		$	—	$	1,968,725
Investment Companies*		117,397			—			—		117,397
Total investments in securities $		2,086,122		$	—		$	—	$	2,086,122


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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)

LargeCap Growth Fund I
Common Stocks
Basic Materials	$	21,395		$	—		$	—	$	21,395
Communications		1,586,357			—			1,137		1,587,494
Consumer, Cyclical		888,064			—			—		888,064
Consumer, Non-cyclical		1,874,739			—			—		1,874,739
Energy		5,440			—			—		5,440
Financial		518,290			—			—		518,290
Industrial		700,950			—			—		700,950
Technology		1,234,040			—			—		1,234,040
Utilities		245			—			—		245
Convertible Preferred Stocks
Communications		—			—			30,755		30,755
Investment Companies*		171,309			—			—		171,309
Preferred Stocks
Communications		—			—			8,186		8,186
Technology		—			8,397			—		8,397
Total investments in securities $		7,000,829		$	8,397		$	40,078	$	7,049,304
Liabilities
Equity Contracts**
Futures	$	(2,367	)	$	—		$	—	$	(2,367	)

LargeCap Growth Fund II
Common Stocks*	$	505,387		$	—		$	—	$	505,387
Investment Companies*		13,982			—			—		13,982
Total investments in securities $		519,369		$	—		$	—	$	519,369
Assets
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	36		$	—	$	36
Liabilities
Equity Contracts**
Futures	$	(225	)	$	—		$	—	$	(225	)
Foreign Exchange Contracts**
Foreign Currency Contracts	$	—		$	(2	)	$	—	$	(2	)
LargeCap S&P 500 Index Fund
Common Stocks*	$	4,914,826		$	—		$	—	$	4,914,826
Investment Companies*		33,976			—			—		33,976
Total investments in securities $		4,948,802		$	—		$	—	$	4,948,802
Liabilities
Equity Contracts**
Futures	$	(191	)	$	—		$	—	$	(191	)

LargeCap Value Fund
Common Stocks*	$	2,332,322		$	—		$	—	$	2,332,322
Investment Companies*		20,820			—			—		20,820
Total investments in securities $		2,353,142		$	—		$	—	$	2,353,142

LargeCap Value Fund III
Common Stocks*	$	1,678,250		$	—		$	—	$	1,678,250
Investment Companies*		60,685			—			—		60,685
Total investments in securities $		1,738,935		$	—		$	—	$	1,738,935
Liabilities
Equity Contracts**
Futures	$	(1,112	)	$	—		$	—	$	(1,112	)

MidCap Fund
Common Stocks*	$	11,432,908		$	—		$	—	$	11,432,908
Investment Companies*		9,705			—			—		9,705
Total investments in securities $		11,442,613		$	—		$	—	$	11,442,613

MidCap Growth Fund
Common Stocks*	$	126,711		$	—		$	—	$	126,711
Investment Companies*		3,972			—			—		3,972
Total investments in securities $		130,683		$	—		$	—	$	130,683


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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 )

MidCap Growth Fund III
Common Stocks*	$	1,302,708		$	—	$	—	$	1,302,708
Investment Companies*		56,682			—		—		56,682
	Total investments in securities $	1,359,390		$	—	$	—	$	1,359,390
Liabilities
Equity Contracts**
Futures	$	(886	)	$	—	$	—	$	(886	)

MidCap S&P 400 Index Fund
Common Stocks*	$	1,178,629		$	—	$	—	$	1,178,629
Investment Companies*		26,332			—		—		26,332
	Total investments in securities $	1,204,961		$	—	$	—	$	1,204,961
Liabilities
Equity Contracts**
Futures	$	(238	)	$	—	$	—	$	(238	)

MidCap Value Fund I
Common Stocks*	$	1,084,776		$	—	$	—	$	1,084,776
Investment Companies*		20,543			—		—		20,543
	Total investments in securities $	1,105,319		$	—	$	—	$	1,105,319
Liabilities
Equity Contracts**
Futures	$	(565	)	$	—	$	—	$	(565	)

MidCap Value Fund III
Common Stocks*	$	1,161,186		$	—	$	—	$	1,161,186
Investment Companies*		45,798			—		—		45,798
	Total investments in securities $	1,206,984		$	—	$	—	$	1,206,984
Liabilities
Equity Contracts**
Futures	$	(1,112	)	$	—	$	—	$	(1,112	)

Money Market Fund
Bonds*	$	—		$	92,899	$	—	$	92,899
Certificate of Deposit*		—			5,800		—		5,800
Commercial Paper*		—			502,165		—		502,165
Investment Companies*		38,380			—		—		38,380
Municipal Bonds*		—			49,752		—		49,752
Repurchase Agreements*		—			58,000		—		58,000
	Total investments in securities $	38,380		$	708,616	$	—	$	746,996

Overseas Fund
Common Stocks
Basic Materials	$	—		$	189,468	$	—	$	189,468
Communications		28,156			194,016		—		222,172
Consumer, Cyclical		—			221,659		—		221,659
Consumer, Non-cyclical		47,257			469,832		—		517,089
Diversified		—			16,397		—		16,397
Energy		27,031			238,661		—		265,692
Financial		7,202			671,416		—		678,618
Industrial		28,856			556,390		—		585,246
Technology		—			105,819		—		105,819
Utilities		—			105,458		—		105,458
Investment Companies*		109,780			—		—		109,780
Preferred Stocks
Consumer, Cyclical		—			64,154		—		64,154
	Total investments in securities $	248,282		$	2,833,270	$	—	$	3,081,552
Liabilities
Equity Contracts**
Futures	$	(1,676	)	$	—	$	—	$	(1,676	)

Principal Capital Appreciation Fund
Common Stocks*	$	2,431,952		$	—	$	—	$	2,431,952
Investment Companies*		25,466			—		—		25,466
	Total investments in securities $	2,457,418		$	—	$	—	$	2,457,418

Principal LifeTime 2010 Fund
Investment Companies*	$	1,217,372		$	—	$	—	$	1,217,372
	Total investments in securities $	1,217,372		$	—	$	—	$	1,217,372


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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)

Principal LifeTime 2015 Fund
Investment Companies*	$	760,416	$	—	$	—	$	760,416
Total investments in securities $		760,416	$	—	$	—	$	760,416

Principal LifeTime 2020 Fund
Investment Companies*	$	5,851,009	$	—	$	—	$	5,851,009
Total investments in securities $		5,851,009	$	—	$	—	$	5,851,009

Principal LifeTime 2025 Fund
Investment Companies*	$	1,693,006	$	—	$	—	$	1,693,006
Total investments in securities $		1,693,006	$	—	$	—	$	1,693,006

Principal LifeTime 2030 Fund
Investment Companies*	$	6,578,023	$	—	$	—	$	6,578,023
Total investments in securities $		6,578,023	$	—	$	—	$	6,578,023

Principal LifeTime 2035 Fund
Investment Companies*	$	1,290,053	$	—	$	—	$	1,290,053
Total investments in securities $		1,290,053	$	—	$	—	$	1,290,053

Principal LifeTime 2040 Fund
Investment Companies*	$	4,355,408	$	—	$	—	$	4,355,408
Total investments in securities $		4,355,408	$	—	$	—	$	4,355,408

Principal LifeTime 2045 Fund
Investment Companies*	$	850,944	$	—	$	—	$	850,944
Total investments in securities $		850,944	$	—	$	—	$	850,944

Principal LifeTime 2050 Fund
Investment Companies*	$	2,363,086	$	—	$	—	$	2,363,086
Total investments in securities $		2,363,086	$	—	$	—	$	2,363,086
Principal LifeTime 2055 Fund
Investment Companies*	$	305,335	$	—	$	—	$	305,335
Total investments in securities $		305,335	$	—	$	—	$	305,335

Principal LifeTime 2060 Fund
Investment Companies*	$	155,553	$	—	$	—	$	155,553
Total investments in securities $		155,553	$	—	$	—	$	155,553

Principal LifeTime Hybrid 2015 Fund
Investment Companies*	$	12,231	$	—	$	—	$	12,231
Total investments in securities $		12,231	$	—	$	—	$	12,231

Principal LifeTime Hybrid 2020 Fund
Investment Companies*	$	43,566	$	—	$	—	$	43,566
Total investments in securities $		43,566	$	—	$	—	$	43,566

Principal LifeTime Hybrid 2025 Fund
Investment Companies*	$	12,886	$	—	$	—	$	12,886
Total investments in securities $		12,886	$	—	$	—	$	12,886

Principal LifeTime Hybrid 2030 Fund
Investment Companies*	$	45,803	$	—	$	—	$	45,803
Total investments in securities $		45,803	$	—	$	—	$	45,803

Principal LifeTime Hybrid 2035 Fund
Investment Companies*	$	9,893	$	—	$	—	$	9,893
Total investments in securities $		9,893	$	—	$	—	$	9,893

Principal LifeTime Hybrid 2040 Fund
Investment Companies*	$	23,795	$	—	$	—	$	23,795
Total investments in securities $		23,795	$	—	$	—	$	23,795

Principal LifeTime Hybrid 2045 Fund
Investment Companies*	$	6,249	$	—	$	—	$	6,249
Total investments in securities $		6,249	$	—	$	—	$	6,249

Principal LifeTime Hybrid 2050 Fund
Investment Companies*	$	12,616	$	—	$	—	$	12,616
Total investments in securities $		12,616	$	—	$	—	$	12,616


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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)

Principal LifeTime Hybrid 2055 Fund
Investment Companies*	$	1,926	$	—	$	—	$	1,926
	Total investments in securities $	1,926	$	—	$	—	$	1,926

Principal LifeTime Hybrid 2060 Fund
Investment Companies*	$	464	$	—	$	—	$	464
	Total investments in securities $	464	$	—	$	—	$	464

Principal LifeTime Hybrid Income Fund
Investment Companies*	$	8,796	$	—	$	—	$	8,796
	Total investments in securities $	8,796	$	—	$	—	$	8,796

Principal LifeTime Strategic Income Fund
Investment Companies*	$	686,877	$	—	$	—	$	686,877
	Total investments in securities $	686,877	$	—	$	—	$	686,877

Real Estate Securities Fund
Common Stocks*	$	2,846,010	$	—	$	—	$	2,846,010
Investment Companies*		44,802		—		—		44,802
	Total investments in securities $	2,890,812	$	—	$	—	$	2,890,812

SAM Balanced Portfolio
Investment Companies*	$	4,763,786	$	—	$	—	$	4,763,786
	Total investments in securities $	4,763,786	$	—	$	—	$	4,763,786

SAM Conservative Balanced Portfolio
Investment Companies*	$	1,737,295	$	—	$	—	$	1,737,295
	Total investments in securities $	1,737,295	$	—	$	—	$	1,737,295

SAM Conservative Growth Portfolio
Investment Companies*	$	3,001,152	$	—	$	—	$	3,001,152
	Total investments in securities $	3,001,152	$	—	$	—	$	3,001,152

SAM Flexible Income Portfolio
Investment Companies*	$	2,533,399	$	—	$	—	$	2,533,399
	Total investments in securities $	2,533,399	$	—	$	—	$	2,533,399

SAM Strategic Growth Portfolio
Investment Companies*	$	1,796,659	$	—	$	—	$	1,796,659
	Total investments in securities $	1,796,659	$	—	$	—	$	1,796,659

Short-Term Income Fund
Bonds*	$	—	$	3,030,891	$	16,900	$	3,047,791
Investment Companies*		76,202		—		—		76,202
U.S. Government & Government Agency Obligations*		—		1,104		—		1,104
	Total investments in securities $	76,202	$	3,031,995	$	16,900	$	3,125,097

SmallCap Fund
Common Stocks
Basic Materials	$	6,165	$	—	$	—	$	6,165
Communications		29,175		—		—		29,175
Consumer, Cyclical		64,012		—		—		64,012
Consumer, Non-cyclical		102,991		81		—		103,072
Energy		22,190		—		—		22,190
Financial		148,069		—		—		148,069
Industrial		92,505		—		—		92,505
Technology		59,546		—		—		59,546
Utilities		22,846		—		—		22,846
Investment Companies*		8,054		—		—		8,054
	Total investments in securities $	555,553	$	81	$	—	$	555,634


		NOTES TO FINANCIAL STATEMENTS
		PRINCIPAL FUNDS, INC.
		October 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)

SmallCap Growth Fund I
Common Stocks
Basic Materials	$	13,815		$	—	$	—	$	13,815
Communications		125,057			—		17		125,074
Consumer, Cyclical		205,634			—		—		205,634
Consumer, Non-cyclical		341,079			235		—		341,314
Diversified		373			—		—		373
Energy		19,422			—		—		19,422
Financial		100,960			—		—		100,960
Industrial		210,988			—		—		210,988
Technology		299,686			—		—		299,686
Utilities		1,062			—		—		1,062
Investment Companies*		76,019			—		—		76,019
	Total investments in securities $	1,394,095		$	235	$	17	$	1,394,347
Liabilities
Equity Contracts**
Futures	$	(3,467	)	$	—	$	—	$	(3,467	)

SmallCap S&P 600 Index Fund
Common Stocks*	$	1,099,888		$	—	$	—	$	1,099,888
Investment Companies*		20,129			—		—		20,129
	Total investments in securities $	1,120,017		$	—	$	—	$	1,120,017
Liabilities
Equity Contracts**
Futures	$	(322	)	$	—	$	—	$	(322	)

SmallCap Value Fund II
Common Stocks
Basic Materials	$	41,277		$	—	$	—	$	41,277
Communications		33,374			—		188		33,562
Consumer, Cyclical		127,578			89		—		127,667
Consumer, Non-cyclical		173,642			150		—		173,792
Diversified		13			—		—		13
Energy		73,943			—		—		73,943
Financial		365,576			123		—		365,699
Government		404			—		—		404
Industrial		184,405			9		—		184,414
Technology		102,479			—		—		102,479
Utilities		46,748			—		—		46,748
Investment Companies*		65,395			—		—		65,395
	Total investments in securities $	1,214,834		$	371	$	188	$	1,215,393
Liabilities
Equity Contracts**
Futures	$	(2,943	)	$	—	$	—	$	(2,943	)

Tax-Exempt Bond Fund
Bonds*	$	—		$	1,534	$	—	$	1,534
Municipal Bonds*		—			429,575		—		429,575
	Total investments in securities $	—		$	431,109	$	—	$	431,109

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

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

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

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

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

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

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

Management Services. The Funds have agreed to pay investment advisory and management fees to the Manager (wholly owned by Principal Financial Services, Inc.) computed at an annual percentage rate of each of the Funds’ average daily net assets. A portion of the management fee is paid by the Manager to the sub-advisor of each of the Funds, some of which are affiliates of the Manager. On March 1, 2016, the investment and advisory fees paid by each of the Principal LifeTime Funds were eliminated. Prior to March 1, 2016, the annual rate paid by each of the Principal LifeTime Funds was .03% of each of the Principal LifeTime Funds’ average net assets. On March 1, 2016, the investment and advisory fees paid by each of the Principal LifeTime Hybrid Funds were eliminated. Prior to March 1, 2016, the annual rate paid by each of the Principal LifeTime Hybrid Funds was .01% of each of the Principal LifeTime Hybrid Funds’ average net assets. The annual rate paid by the SAM Portfolios is based upon the aggregate average daily net assets (“aggregate net assets”) of the SAM Portfolios. The investment advisory and management fee schedule for the SAM Portfolios is .55% of aggregate net assets up to $500 million, .50% of the next $500 million of aggregate net assets, .45% of the next $1 billion of aggregate net assets, .40% of the next $1 billion of aggregate net assets, .35% of the next $1 billion of aggregate net assets, .30% of the next $1 billion of aggregate net assets, .25% of the next $9 billion of aggregate net assets, and .20% of aggregate net assets over $14 billion. The annual rates used in this calculation for each of the other Funds are as follows:


					Net Assets of Fund

		First			Next			Next		Over
		$500			$500			$500				$1.5						Net Assets of Fund (in billions)
		million			million			million		billion								First $1				Over $1
Finisterre Unconstrained Emerging														California Municipal Fund				.45			%	.40	%
Markets Bond Fund		1.02	%		1.00	%		.98	%	.97			%
MidCap Growth Fund		.65			.63			.61				.60
MidCap Growth Fund III		1.00			.96			.94				.92
MidCap Value Fund III		.65			.63			.61				.60
SmallCap Fund		.75			.73			.71				.70
Tax-Exempt Bond Fund		.45			.43			.41				.40

								Net Assets of Fund
		First			Next			Next				Next
		$500			$500			$500				$500		Next $1		Over $3
		million			million			million				million		billion		billion
Core Plus Bond Fund		.55	%		.53	%		.51	%			.50	%	.48	%	.45	%
Diversified International Fund		.90			.88			.86				.85		.83		.80
Global Diversified Income Fund		.80			.78			.76				.75		.73		.70
Global Real Estate Securities Fund		.90			.88			.86				.85		.84		.83
High Yield Fund I		.65			.63			.61				.60		.59		.58
Inflation Protection Fund		.40			.38			.36				.35		.34		.33
International Emerging Markets Fund		1.20			1.18			1.16				1.15		1.14		1.13
International Fund I		.90			.88			.86				.85		.84		.83
LargeCap Growth Fund I		.66			.64			.62				.61		.60		.59
LargeCap Growth Fund II		.89			.87			.85				.84		.83		.82
LargeCap Value Fund		.45			.43			.41				.40		.39		.38
LargeCap Value Fund III		.80			.78			.76				.75		.73		.70
MidCap Fund		.65			.63			.61				.60		.59		.58
MidCap Value Fund I		1.00			.98			.96				.95		.94		.93
Money Market Fund		.40			.39			.38				.37		.36		.35
Overseas Fund		1.10			1.08			1.06				1.05		1.04		1.03
Real Estate Securities Fund		.85			.83			.81				.80		.79		.78
SmallCap Growth Fund I		1.10			1.08			1.06				1.05		1.04		1.03
SmallCap Value Fund II		1.00			.98			.96				.95		.94		.93

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

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

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 the Transfer Agent 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:


			Period from November 1, 2015 through October 31, 2016
	Class A		Class C		Class J	Class P	Institutional		Expiration
California Municipal Fund	N/A		N/A		N/A	.52%	.60	%	February 28, 2017
Core Plus Bond Fund	.88	%	1.75	%	N/A	N/A	N/A		February 28, 2017
Diversified International Fund	N/A		2.08		N/A	N/A	N/A		February 28, 2017
Finisterre Unconstrained Emerging Markets
Bond Fund	1.47	#	N/A		N/A	1.15#	1.12	#	February 28, 2018
Global Real Estate Securities Fund	N/A		2.20		N/A	N/A	N/A		February 28, 2017
Government & High Quality Bond Fund	.88		1.63		N/A	N/A	N/A		February 28, 2017
High Yield Fund	N/A		N/A		N/A	N/A	.61	*	February 28, 2017
High Yield Fund I	1.05		N/A		N/A	N/A	N/A		February 28, 2017
Inflation Protection Fund	.90		1.65		1.15%	N/A	N/A		February 28, 2017
International Emerging Markets Fund	1.75		2.80		N/A	N/A	N/A		February 28, 2017
International Fund I	1.45		N/A		N/A	N/A	1.00		February 28, 2017
LargeCap Growth Fund I	1.25		N/A		N/A	N/A	N/A		February 28, 2017
LargeCap S&P 500 Index Fund	N/A		1.30		N/A	N/A	N/A		February 28, 2017
LargeCap Value Fund	N/A		1.70		N/A	N/A	N/A		February 28, 2017
MidCap Growth Fund	N/A		N/A		N/A	N/A	.75		February 28, 2017
MidCap S&P 400 Index Fund	N/A		N/A		N/A	N/A	.25	**	February 29, 2016
MidCap Value Fund III	1.30		N/A		N/A	N/A	N/A		February 28, 2017
Money Market Fund	N/A		1.79		N/A	N/A	N/A		February 28, 2017
Principal LifeTime 2010 Fund	.38	***	N/A		N/A	N/A	N/A		February 28, 2017
Principal LifeTime 2020 Fund	.38	***	N/A		N/A	N/A	N/A		February 28, 2017
Principal LifeTime 2030 Fund	.38	***	N/A		N/A	N/A	N/A		February 28, 2017
Principal LifeTime 2040 Fund	.38	***	N/A		N/A	N/A	N/A		February 28, 2017
Principal LifeTime 2050 Fund	.38	***	N/A		N/A	N/A	N/A		February 28, 2017
Principal LifeTime 2060 Fund	N/A		N/A		.38***	N/A	.10	^	February 28, 2017
Principal LifeTime Hybrid 2015 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2020 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2025 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2030 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2035 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018


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

5. Management Agreement and Transactions with Affiliates (Continued)

	Class A		Class C		Class J	Class P	Institutional		Expiration
Principal LifeTime Hybrid 2040 Fund	N/A		N/A		N/A	N/A	.05	%^^	February 28, 2018
Principal LifeTime Hybrid 2045 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2050 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2055 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid 2060 Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Hybrid Income Fund	N/A		N/A		N/A	N/A	.05	^^	February 28, 2018
Principal LifeTime Strategic Income Fund	.38	%***	N/A		N/A	N/A	N/A		February 28, 2017
Real Estate Securities Fund	N/A		2.20	%**	N/A	N/A	N/A		February 28, 2016
SAM Conservative Balanced Portfolio	.63		1.38		.63%	N/A	N/A		February 28, 2017
SAM Conservative Growth Portfolio	N/A		N/A		N/A	.37%^^^	N/A		February 28, 2017
SmallCap Fund	1.35	**	2.08		N/A	N/A	.80		February 28, 2017
SmallCap Growth Fund I	N/A		N/A		1.50	N/A	1.02		February 28, 2017
SmallCap Value Fund II	1.45		N/A		N/A	N/A	N/A		February 28, 2017
Tax-Exempt Bond Fund	N/A		1.60		N/A	.53	.60		February 28, 2017
* Period from January 12, 2016 to October 31, 2016.
**Expired February 29, 2016.

Period from November 1, 2015 through October 31, 2016

R-1

R-2

R-3

R-4

R-5

R-6

Expiration

Global Real Estate Securities Fund

N/A

.94

February 28, 2017

Government & High Quality Bond Fund

1.29

1.16

.98

.79

.67

N/A

February 28, 2017

Income Fund

N/A

.55

February 28, 2017

LargeCap Growth Fund I

N/A

.65

February 28, 2017

MidCap Value Fund III

N/A

.69

February 28, 2017

Principal LifeTime 2055 Fund

.93

.80

.62

.43

.31

N/A

February 28, 2017

Principal LifeTime 2060 Fund

.93

.80

.62

.43

.31

N/A

February 28, 2017

Principal LifeTime Hybrid 2015 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2020 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2025 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2030 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2035 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2040 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2045 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2050 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2055 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid 2060 Fund

N/A

.02

February 28, 2018

Principal LifeTime Hybrid Income Fund

N/A

.02

February 28, 2018

Short-Term Income Fund

1.30

1.18

.99

.79

.68

N/A

February 28, 2017

SmallCap Growth Fund I

1.88

1.75

1.57

1.38

1.26

1.06

February 28, 2017

SmallCap Value Fund II

N/A

1.01

February 28, 2017

^ Prior to March 1, 2016, the contractual limits were .96%, .83%, .65%, .46%, and .34% for R-1, R-2, R-3, R-4, and R-5, respectively.

In addition, the Manager has contractually agreed to limit certain of the Funds’ management and investment advisory fees through the period ending February 28, 2017. The expense limit will reduce the Fund’s management and investment advisory fees by the following amounts:

# Prior to July 1, 2016, the contractual reduction was .060%; the current contractual reduction will expire February 28, 2018.

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

In addition, the Manager has contractually agreed to limit Class P expenses other than management and investment advisory fees and distribution fees and, if necessary, pay expenses normally payable by the Funds, excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses, through the period ending February 28, 2017. The expense limit will maintain these expenses (expressed as a percent of average net assets on an annualized basis) not to exceed .20% for each of Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, Income Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap Value Fund, MidCap Fund, MidCap Value Fund III, Principal Capital Appreciation Fund, Real Estate Securities Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Fund, SmallCap Fund, and SmallCap Value Fund II, respectively.

Amounts owed to the Funds under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as expense reimbursement from Manager 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, except the following classes of shares:

The Distributor has voluntarily agreed to limit the distribution fees (expressed as a percent of average net assets on an annualized basis) attributable to Class J shares (with the exception of Money Market Fund). The limit will maintain the level of distribution fees not to exceed .132% for Class J shares. The voluntary expense limit may be terminated at any time.

The Distributor has contractually agreed to limit Money Market Fund’s distribution fees attributable to Class J shares of Money Market Fund. This waiver will reduce the distribution fees by .15%. The expense limit expires February 28, 2017.

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

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

Amounts owed to the Funds under the terms of the expense limitation agreements are reflected in the statement of assets and liabilities as expense reimbursement from Distributor 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% (.25% for LargeCap S&P 500 Index Fund) of the lesser of current market value or the cost of shares redeemed within 12 months of purchase that were originally sold without a sales charge. The charge for Class C shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 12 months of purchase. The charge for Class J shares is 1.00% of the lesser of current market value or the cost of shares redeemed within 18 months of purchase. The Distributor also retains sales charges on sales of Class A shares based on declining rates which begin at 1.50% for LargeCap S&P 500 Index Fund, 2.25% for Government & High Quality Bond Fund, Income Fund and Short Term Income Fund, 3.75% for California Municipal Fund, Core Plus Bond Fund, Global Diversified Income Fund, High Yield Fund, High Yield Fund I, Inflation Protection Fund, Principal LifeTime 2010 Fund, Principal LifeTime Strategic Income Fund, SAM Flexible Income Portfolio, and Tax-Exempt Bond Fund, and 5.50% for all other Funds (except Money Market Fund which does not carry a sales charge). The aggregate amounts of these charges retained by the Distributor for the year ended October 31, 2016, were as follows (amounts in thousands):


		Class A		Class C		Class J
California Municipal Fund	$	123	$	9		N/A
Core Plus Bond Fund		45		1	$	7
Diversified International Fund		115		2		8
Equity Income Fund		250		9		N/A
Global Diversified Income Fund		623		184		N/A
Global Real Estate Securities Fund		62		5		N/A
Government & High Quality Bond Fund		258		11		10
High Yield Fund		148		17		N/A
High Yield Fund I		14		N/A		N/A
Income Fund		112		13		11
Inflation Protection Fund		5		–		–
International Emerging Markets Fund		79		1		5
International Fund I		11		N/A		N/A
LargeCap Growth Fund		150		1		5
LargeCap Growth Fund I		70		N/A		12
LargeCap Growth Fund II		N/A		N/A		1
LargeCap S&P 500 Index Fund		153		5		30
LargeCap Value Fund		89		–		2
LargeCap Value Fund III		N/A		N/A		1
MidCap Fund		281		11		3
MidCap Growth Fund		N/A		N/A		10
MidCap Growth Fund III		N/A		N/A		1
MidCap S&P 400 Index Fund		N/A		N/A		10
MidCap Value Fund I		N/A		N/A		2
MidCap Value Fund III		80		N/A		2
Money Market Fund		8		18		109
Principal Capital Appreciation Fund		313		6		N/A
Principal LifeTime 2010 Fund		24		N/A		36
Principal LifeTime 2020 Fund		154		N/A		169
Principal LifeTime 2030 Fund		294		N/A		186
Principal LifeTime 2040 Fund		277		N/A		143
Principal LifeTime 2050 Fund		209		N/A		58
Principal LifeTime 2060 Fund		N/A		N/A		5
Principal LifeTime Strategic Income Fund		25		N/A		13
Real Estate Securities Fund		216		11		14
SAM Balanced Portfolio		1,649		62		192
SAM Conservative Balanced Portfolio		697		32		95
SAM Conservative Growth Portfolio		1,133		30		93
SAM Flexible Income Portfolio		1,081		46		237
SAM Strategic Growth Portfolio		736		16		44
Short-Term Income Fund		302		20		20
SmallCap Fund		143		7		4
SmallCap Growth Fund I		N/A		N/A		4
SmallCap S&P 600 Index Fund		N/A		N/A		7
SmallCap Value Fund II		14		N/A		1
Tax-Exempt Bond Fund		121		6		N/A

Affiliated Ownership. At October 31, 2016, Principal Life Insurance Company (an affiliate of the Manager), the Manager, the Distributor, 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):

Class A

Class P

Institutional

R-1

R-2

R-3

R-4

R-5

R-6

Core Plus Bond Fund

–

N/A

1,906

–

N/A

Diversified International Fund

–

301,383

–

N/A

Equity Income Fund

–

55,547

–

N/A

Finisterre Unconstrained Emerging Markets

Bond Fund

2,480

N/A

Global Diversified Income Fund

–

60,760

N/A

Global Real Estate Securities Fund

–

76,186

N/A

—

Government & High Quality Bond Fund

–

N/A

High Yield Fund

–

12,439

N/A

High Yield Fund I

–

N/A

64,851

N/A

Income Fund

–

50,741

–

—

Inflation Protection Fund

–

N/A

79,747

–

N/A

International Emerging Markets Fund

–

9,729

–

N/A

International Fund I

–

18,818

–

N/A

LargeCap Growth Fund I

–

211,187

–

—

LargeCap Growth Fund II

N/A

58,512

–

N/A

LargeCap S&P 500 Index Fund

–

N/A

5,954

–

N/A

LargeCap Value Fund

–

N/A

LargeCap Value Fund III

N/A

23,099

–

N/A

MidCap Growth Fund III

N/A

39,269

–

N/A

MidCap Value Fund I

N/A

60,864

–

N/A

MidCap Value Fund III

–

—

Overseas Fund

N/A

81,486

–

N/A

Principal Capital Appreciation Fund

–

8,884

–

N/A

Principal LifeTime 2010 Fund

–

N/A

47,494

–

N/A

Principal LifeTime 2015 Fund

N/A

39,506

–

N/A

Principal LifeTime 2020 Fund

–

N/A

238,281

–

N/A

Principal LifeTime 2025 Fund

N/A

92,824

–

N/A

Principal LifeTime 2030 Fund

–

N/A

277,391

–

N/A

Principal LifeTime 2035 Fund

N/A

69,383

–

N/A

Principal LifeTime 2040 Fund

–

N/A

174,969

–

N/A

Principal LifeTime 2045 Fund

N/A

43,443

–

N/A

Principal LifeTime 2050 Fund

–

N/A

105,739

–

N/A

Principal LifeTime 2055 Fund

N/A

16,664

–

N/A

Principal LifeTime 2060 Fund

N/A

9,458

–

N/A

Principal LifeTime Hybrid 2015 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2020 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2025 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2030 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2035 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2040 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2045 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2050 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2055 Fund

N/A

–

N/A

Principal LifeTime Hybrid 2060 Fund

N/A

–

N/A

Principal LifeTime Hybrid Income Fund

N/A

–

N/A

Principal LifeTime Strategic Income Fund

–

N/A

34,793

–

N/A

Real Estate Securities Fund

–

19,799

–

N/A

SAM Balanced Portfolio

–

43,614

–

N/A

SAM Conservative Balanced Portfolio

–

22,264

–

N/A

SAM Conservative Growth Portfolio

–

25,037

–

N/A

SAM Flexible Income Portfolio

–

12,749

–

N/A

SAM Strategic Growth Portfolio

–

11,848

–

N/A

Short-Term Income Fund

–

57,771

–

N/A

SmallCap Fund

–

403

–

N/A

SmallCap Growth Fund I

N/A

62,190

–

—

SmallCap Value Fund II

–

41,975

–

—

Tax-Exempt Bond Fund

–

N/A

Affiliated Brokerage Commissions. With respect to Global Diversified Income Fund, $41,000 of brokerage commission was paid to Spectrum Asset Management, Inc., a member of the Principal Financial Group. The other Funds did not pay brokerage commissions to any member of the Principal Financial Group during the year ended October 31, 2016. Brokerage commissions were paid to affiliates of sub-advisors as follows (amounts in thousands):

For the year ended October 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):


		Purchases		Sales			Purchases		Sales
California Municipal Fund	$	330,070	$	92,622	Principal LifeTime 2030 Fund	$	1,027,946	$	1,005,781
Core Plus Bond Fund		4,854,693		4,852,889	Principal LifeTime 2035 Fund		318,450		187,118
Diversified International Fund		5,078,967		3,248,468	Principal LifeTime 2040 Fund		891,255		779,518
Equity Income Fund		868,414		1,092,759	Principal LifeTime 2045 Fund		249,694		116,176
Finisterre Unconstrained Emerging					Principal LifeTime 2050 Fund		574,307		392,861
Markets Bond Fund		52,965		30,007	Principal LifeTime 2055 Fund		120,962		30,065
Global Diversified Income Fund		10,291,467		10,305,920	Principal LifeTime 2060 Fund		71,775		19,868
Global Real Estate Securities Fund		1,945,592		1,658,302	Principal LifeTime Hybrid 2015 Fund		7,066		2,693
Government & High Quality Bond Fund		434,037		373,923	Principal LifeTime Hybrid 2020 Fund		24,426		4,766
High Yield Fund		1,405,852		1,188,878	Principal LifeTime Hybrid 2025 Fund		11,766		1,758
High Yield Fund I		511,622		443,711	Principal LifeTime Hybrid 2030 Fund		24,428		3,983
Income Fund		462,958		381,363	Principal LifeTime Hybrid 2035 Fund		8,014		1,434
Inflation Protection Fund		10,847		10,748	Principal LifeTime Hybrid 2040 Fund		12,461		2,243
International Emerging Markets Fund		1,240,426		1,486,321	Principal LifeTime Hybrid 2045 Fund		4,733		392
International Fund I		289,406		262,409	Principal LifeTime Hybrid 2050 Fund		6,159		1,148
LargeCap Growth Fund		1,511,482		2,235,427	Principal LifeTime Hybrid 2055 Fund		1,738		181
LargeCap Growth Fund I		2,268,737		2,514,858	Principal LifeTime Hybrid 2060 Fund		379		68
LargeCap Growth Fund II		258,011		369,222	Principal LifeTime Hybrid Income Fund		7,108		1,158
LargeCap S&P 500 Index Fund		202,669		208,375	Principal LifeTime Strategic Income Fund		126,594		165,992
LargeCap Value Fund		2,351,629		2,409,227	Real Estate Securities Fund		1,156,141		654,066
LargeCap Value Fund III		605,229		778,967	SAM Balanced Portfolio		815,765		868,265
MidCap Fund		2,464,370		2,558,131	SAM Conservative Balanced Portfolio		359,983		295,025
MidCap Growth Fund		144,880		152,452	SAM Conservative Growth Portfolio		684,612		801,135
MidCap Growth Fund III		844,665		847,027	SAM Flexible Income Portfolio		503,538		243,547
MidCap S&P 400 Index Fund		202,114		229,696	SAM Strategic Growth Portfolio		423,590		492,438
MidCap Value Fund I		1,779,887		2,374,378	Short-Term Income Fund		1,844,833		1,536,808
MidCap Value Fund III		964,997		786,965	SmallCap Fund		329,722		356,909
Overseas Fund		1,424,063		850,276	SmallCap Growth Fund I		806,957		1,047,319
Principal Capital Appreciation Fund		861,932		1,044,555	SmallCap S&P 600 Index Fund		227,781		279,143
Principal LifeTime 2010 Fund		193,769		353,016	SmallCap Value Fund II		616,665		736,936
Principal LifeTime 2015 Fund		110,128		177,322	Tax-Exempt Bond Fund		288,179		112,442
Principal LifeTime 2020 Fund		723,281		1,053,827
Principal LifeTime 2025 Fund		373,179		221,696

In addition Global Diversified Income Fund had $1,628,753,000 of covers on securities sold short and $1,572,873,000 of securities sold short.

For the year ended October 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):

During the period, Diversified International Fund, Equity Income Fund, Global Diversified Income Fund, High Yield Fund, International Emerging Markets Fund, International Fund I, and Overseas Fund received litigation settlement proceeds from a class action lawsuit regarding forex transactions. The amounts received are shown as litigation settlement on the statement of operations.

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


									Long-Term
		Ordinary Income			Tax-Exempt Income*				Capital Gain^		Section 1250 Gain**
		2016	2015		2016		2015		2016	2015	2016	2015
California Municipal Fund	$	—	$160	$	10,487	$	8,745	$	— $	— $	— $	—
Core Plus Bond Fund		98,295	110,080		—		—		—	—	—	—
Diversified International Fund		89,275	78,901		—		—		—	—	—	—
Equity Income Fund		123,057	126,046		—		—		—	—	—	—
Finisterre Unconstrained Emerging Markets
Bond Fund		288	—		—		—		—	—	—	—
Global Diversified Income Fund		573,868	540,658		—		—		—	171,142	—	—
Global Real Estate Securities Fund		76,327	76,290		—		—		52,474	11,740	—	—
Government & High Quality Bond Fund		57,224	44,238		—		—		—	—	—	—
High Yield Fund		211,316	221,037		—		—		—	23,779	—	—
High Yield Fund I		51,590	72,862		—		—		—	9,911	—	—
Income Fund		115,229	100,635		—		—		—	—	—	—
Inflation Protection Fund		13,459	17,061		—		—		—	—	—	—
International Emerging Markets Fund		9,038	31,011		—		—		—	—	—	—
International Fund I		2,980	7,847		—		—		—	—	—	—
LargeCap Growth Fund		6,377	4,548		—		—		279,032	354,865	—	—
LargeCap Growth Fund I		3,979	85,471		—		—		816,477	640,765	—	—
LargeCap Growth Fund II		31,669	5,588		—		—		53,450	182,672	—	—
LargeCap S&P 500 Index Fund		83,122	71,587		—		—		38,990	—	—	—
LargeCap Value Fund		59,261	225,546		—		—		161,880	181,975	—	—
LargeCap Value Fund III		33,414	49,288		—		—		109,456	20,829	—	—
MidCap Fund		8,962	29,212		—		—		639,107	441,399	—	—
MidCap Growth Fund		1,561	13,551		—		—		1,955	5,831	—	—
MidCap Growth Fund III		—	119,610		—		—		66,578	183,720	—	—
MidCap S&P 400 Index Fund		14,198	14,914		—		—		70,744	46,867	—	—
MidCap Value Fund I		49,924	88,398		—		—		114,565	147,461	—	—
MidCap Value Fund III		12,555	37,100		—		—		25,650	43,485	—	—
Money Market Fund		93	—		—		—		—	—	—	—
Overseas Fund		49,243	88,482		—		—		50,559	102,685	—	—
Principal Capital Appreciation Fund		35,363	27,603		—		—		103,144	93,647	—	—
Principal LifeTime 2010 Fund		23,573	32,009		—		—		39,912	—	—	—
Principal LifeTime 2015 Fund		14,767	22,287		—		—		51,423	26,198	—	—
Principal LifeTime 2020 Fund		101,432	160,249		—		—		388,198	220,300	—	—
Principal LifeTime 2025 Fund		25,929	38,777		—		—		100,549	46,521	—	—


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

7. Federal Tax Information (Continued)

								Long-Term
		Ordinary Income			Tax-Exempt Income*			Capital Gain^			Section 1250 Gain**
		2016	2015		2016		2015	2016	2015		2016	2015
Principal LifeTime 2030 Fund	$	105,340	$ 176,263	$	— $	— $		460,350	$ 249,374	$	— $	—
Principal LifeTime 2035 Fund		18,232	28,270		—		—	43,925	40,896		—	—
Principal LifeTime 2040 Fund		65,275	114,875		—		—	206,804	171,219		—	—
Principal LifeTime 2045 Fund		10,730	17,479		—		—	27,303	24,561		—	—
Principal LifeTime 2050 Fund		33,661	59,091		—		—	94,604	84,887		—	—
Principal LifeTime 2055 Fund		3,134	4,462		—		—	6,567	4,950		—	—
Principal LifeTime 2060 Fund		1,521	1,432		—		—	2,027	25		—	—
Principal LifeTime Hybrid 2015 Fund		120	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2020 Fund		382	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2025 Fund		52	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2030 Fund		408	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2035 Fund		55	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2040 Fund		218	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2045 Fund		34	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2050 Fund		122	1		—		—	—	—		—	—
Principal LifeTime Hybrid 2055 Fund		6	—		—		—	—	—		—	—
Principal LifeTime Hybrid 2060 Fund		2	—		—		—	—	—		—	—
Principal LifeTime Hybrid Income Fund		42	—		—		—	—	—		—	—
Principal LifeTime Strategic Income Fund		13,535	15,567		—		—	—	—		—	—
Real Estate Securities Fund		47,255	30,710		—		—	118,424	18,261		5,452	2,200
SAM Balanced Portfolio		69,051	95,964		—		—	301,624	112,889		—	—
SAM Conservative Balanced Portfolio		34,250	37,366		—		—	65,891	25,768		—	—
SAM Conservative Growth Portfolio		25,969	54,099		—		—	290,387	100,994		—	—
SAM Flexible Income Portfolio		62,528	55,038		—		—	56,057	21,694		—	—
SAM Strategic Growth Portfolio		21,394	35,915		—		—	216,990	93,140		—	—
Short-Term Income Fund		56,185	41,040		—		—	—	630		—	—
SmallCap Fund		—	9,561		—		—	21,904	48,352		—	—
SmallCap Growth Fund I		—	11,076		—		—	137,062	266,807		—	—
SmallCap S&P 600 Index Fund		14,132	17,784		—		—	74,738	63,192		—	—
SmallCap Value Fund II		24,229	27,593		—		—	113,711	112,817		—	—
Tax-Exempt Bond Fund		40	183		12,009		9,440	—	—		—	—

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

^The Funds designate these distributions as long-term capital gain dividends per IRC Sec. 852(b)(3)(C) in the 20-percent group (which may be taxed at a 20-percent rate, a 15-percent rate or a 0-percent rate, depending on the shareholder’s taxable income).

**Unrecaptured Section 1250 gains are gains from the sale of depreciable property that are subject to a maximum tax rate of 25%.

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

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

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


																	Total
		Undistributed		Undistributed		Undistributed					Net Unrealized			Other			Accumulated
		Ordinary		Tax-Exempt		Long-Term		Accumulated			Appreciation			Temporary			Earnings
		Income		Income		Capital Gains		Losses			(Depreciation)			Differences*			(Deficit)
California Municipal Fund	$	—	$	48	$	—	$	(32,574	)	$	19,536		$	—		$	(12,990	)
Core Plus Bond Fund		8,564		—		—		(133,934	)		55,658			(406	)		(70,118	)
Diversified International Fund		120,019		—		—		(522,915	)		538,432			—			135,536
Equity Income Fund		12,174		—		105,292		—			1,717,975			—			1,835,441
Finisterre Unconstrained Emerging Markets
Bond Fund		375		—		20		—			17			(28	)		384
Global Diversified Income Fund		67,864		—		—		(198,668	)		(62,642	)		(3,520	)		(196,966	)
Global Real Estate Securities Fund		34,501		—		5,818		(317	)		147,690			—			187,692
Government & High Quality Bond Fund		331		—		—		(15,007	)		(5,989	)		—			(20,665	)
High Yield Fund		2,015		—		—		(138,322	)		(59,666	)		(4,974	)		(200,947	)
High Yield Fund I		68		—		—		(54,806	)		4,387			(364	)		(50,715	)
Income Fund		486		—		—		(60,953	)		86,765			(53	)		26,245
Inflation Protection Fund		7,983		—		—		(23,715	)		27,886			(6,550	)		5,604
International Emerging Markets Fund		9,866		—		—		(224,438	)		107,144			—			(107,428	)


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


7. Federal Tax Information (Continued)

											Net						Total
		Undistributed		Undistributed		Undistributed					Unrealized		Other				Accumulated
		Ordinary		Tax-Exempt		Long-Term		Accumulated			Appreciation		Temporary				Earnings
		Income		Income	Capital Gains			Losses			(Depreciation)		Differences*				(Deficit)
International Fund I	$	3,591	$	—	$	—	$	(311,237	)	$	41,829		$	—		$	(265,817	)
LargeCap Growth Fund		5,895		—		237,365		—			289,755			—			533,015
LargeCap Growth Fund I		4,905		—		292,382		—			1,481,836			—			1,779,123
LargeCap Growth Fund II		3,120		—		17,100		—			27,585			—			47,805
LargeCap S&P 500 Index Fund		71,618		—		64,055		—			1,630,775			—			1,766,448
LargeCap Value Fund		39,182		—		48,082		—			73,504			—			160,768
LargeCap Value Fund III		28,803		—		46,054		—			92,284			—			167,141
MidCap Fund		30,120		—		248,455		—			2,379,116			—			2,657,691
MidCap Growth Fund		256		—		—		(7,557	)		12,999			—			5,698
MidCap Growth Fund III		—		—		3,068		(1,028	)		68,433			—			70,473
MidCap S&P 400 Index Fund		12,712		—		62,046		—			186,586			—			261,344
MidCap Value Fund I		14,241		—		—		(11,696	)		8,154			—			10,699
MidCap Value Fund III		14,477		—		5,579		—			67,666			—			87,722
Money Market Fund		54		—		—		(2,969	)		—			—			(2,915	)
Overseas Fund		55,367		—		—		(43,041	)		(150,702	)		—			(138,376	)
Principal Capital Appreciation Fund		24,824		—		213,872		—			934,240			—			1,172,936
Principal LifeTime 2010 Fund		11,215		—		24,614		—			74,931			—			110,760
Principal LifeTime 2015 Fund		6,032		—		11,855		—			95,445			—			113,332
Principal LifeTime 2020 Fund		41,726		—		99,432		—			415,092			—			556,250
Principal LifeTime 2025 Fund		8,974		—		30,205		—			141,396			—			180,575
Principal LifeTime 2030 Fund		29,442		—		139,815		—			477,653			—			646,910
Principal LifeTime 2035 Fund		3,089		—		34,164		—			126,377			—			163,630
Principal LifeTime 2040 Fund		8,822		—		140,462		—			421,103			—			570,387
Principal LifeTime 2045 Fund		1,224		—		24,888		—			62,862			—			88,974
Principal LifeTime 2050 Fund		2,915		—		76,991		—			197,025			—			276,931
Principal LifeTime 2055 Fund		238		—		7,781		—			7,913			—			15,932
Principal LifeTime 2060 Fund		136		—		3,371		—			(5,709	)		—			(2,202	)
Principal LifeTime Hybrid 2015 Fund		40		—		51		—			125			—			216
Principal LifeTime Hybrid 2020 Fund		110		—		169		—			402			—			681
Principal LifeTime Hybrid 2025 Fund		23		—		29		—			122			—			174
Principal LifeTime Hybrid 2030 Fund		57		—		236		—			210			—			503
Principal LifeTime Hybrid 2035 Fund		11		—		39		—			45			—			95
Principal LifeTime Hybrid 2040 Fund		16		—		156		—			37			—			209
Principal LifeTime Hybrid 2045 Fund		4		—		26		—			(26	)		—			4
Principal LifeTime Hybrid 2050 Fund		9		—		94		—			43			—			146
Principal LifeTime Hybrid 2055 Fund		1		—		5		—			2			—			8
Principal LifeTime Hybrid 2060 Fund		—		—		2		—			13			—			15
Principal LifeTime Hybrid Income Fund		32		—		6		—			32			—			70
Principal LifeTime Strategic Income Fund		7,580		—		2,542		—			41,549			—			51,671
Real Estate Securities Fund		—		—		87,152		—			557,917			—			645,069
SAM Balanced Portfolio		1,594		—		94,188		—			658,109			—			753,891
SAM Conservative Balanced Portfolio		1,813		—		17,938		—			152,192			—			171,943
SAM Conservative Growth Portfolio		3,808		—		64,572		—			489,779			—			558,159
SAM Flexible Income Portfolio		470		—		9,938		—			118,724			—			129,132
SAM Strategic Growth Portfolio		7,197		—		47,263		—			258,368			—			312,828
Short-Term Income Fund		466		—		—		(15,547	)		9,747			(505	)		(5,839	)
SmallCap Fund		2,640		—		11,868		—			76,909			—			91,417
SmallCap Growth Fund I		—		—		44,058		(5,740	)		126,613			—			164,931
SmallCap S&P 600 Index Fund		12,956		—		65,191		—			142,094			—			220,241
SmallCap Value Fund II		8,814		—		66,877		—			87,807			—			163,498
Tax-Exempt Bond Fund		—		52		—		(16,564	)		18,072			—			1,560

*Represents book-to-tax accounting differences.

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

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 October 31, 2016, the Funds had approximate net capital loss carryforwards as follows (amounts in thousands):


		Net Capital Loss Carryforward Expiring In:						No Expiration
														Annual
		2017		2018		2019		Short-Term		Long-Term		Total		Limitations*
California Municipal Fund	$	21,987	$	3,189	$	6,663	$	105	$	631	$	32,575	$	—
Core Plus Bond Fund		104,898		—		20,017		—		9,019		133,934		—
Diversified International Fund		372,959		—		—		149,956		—		522,915		38,411
Global Diversified Income Fund		—		—		—		12,661		186,007		198,668		—
Global Real Estate Securities Fund		200		118		—		—		—		318		200
Government & High Quality Bond Fund		2,385		—		—		—		12,622		15,007		—
High Yield Fund		—		—		—		14,720		123,602		138,322		—
High Yield Fund I		—		—		—		11,637		43,170		54,807		—
Income Fund		11,616		8,587		13,420		—		27,330		60,953		—
Inflation Protection Fund		—		—		—		8,566		15,149		23,715		—
International Emerging Markets Fund		68,739		—		—		121,770		33,929		224,438		—
International Fund I		272,451		—		—		38,787		—		311,238		—
MidCap Growth Fund		—		—		—		7,557		—		7,557		—
MidCap Value Fund I		—		—		—		11,696		—		11,696		—
Money Market Fund		2,969		—		—		—		—		2,969		—
Overseas Fund		—		—		—		15,723		27,318		43,041		—
Short-Term Income Fund		15,548		—		—		—		—		15,548		5,314
Tax-Exempt Bond Fund		8,745		3,432		2,371		2,016		—		16,564		—

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

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

As of October 31, 2016, the following funds had expired or utilized capital loss carryforwards as follows (amounts in thousands):

Late-Year Losses. A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. At October 31, 2016, the Funds had approximate late-year ordinary losses as follows (amounts in thousands):

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 U.S. GAAP and tax accounting. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statement of Changes in Net Assets as from net investment income, from net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2016, the Funds recorded reclassifications as follows (amounts in thousands):


		Accumulated			Accumulated
		Undistributed Net			Net Realized Gain
		Investment Income			on Investments			Paid in Capital
California Municipal Fund	$	(108	)	$	10,831		$	(10,723	)
Core Plus Bond Fund		(460	)		460			—
Diversified International Fund		1,436			36,975			(38,411	)
Equity Income Fund		(1,926	)		1,888			38
Finisterre Unconstrained Emerging Markets Bond Fund		17			(17	)		—
Global Diversified Income Fund		(47,435	)		47,437			(2	)
Global Real Estate Securities Fund		36,807			(52,807	)		16,000
Government & High Quality Bond Fund		8,188			47,309			(55,497	)
High Yield Fund		6,978			(6,978	)		—
High Yield Fund I		(80	)		80			—
Income Fund		8,114			(8,114	)		—
Inflation Protection Fund		(7,288	)		7,288			—
International Emerging Markets Fund		778			(778	)		—
International Fund I		(83	)		21,661			(21,578	)
LargeCap Growth Fund		—			(123,053	)		123,053
LargeCap Growth Fund I		117			(186,879	)		186,762
LargeCap Growth Fund II		45			(93,370	)		93,325
LargeCap S&P 500 Index Fund		(13	)		(308	)		321
LargeCap Value Fund		2,025			(105,490	)		103,465
LargeCap Value Fund III		(172	)		(32,028	)		32,200
MidCap Fund		9,335			(100,775	)		91,440
MidCap Growth Fund		12			(2,627	)		2,615
MidCap Growth Fund III		2,975			(19,600	)		16,625
MidCap S&P 400 Index Fund		130			(20,314	)		20,184
MidCap Value Fund I		439			(25,162	)		24,723
MidCap Value Fund III		164			(9,401	)		9,237
Money Market Fund		54			35,423			(35,477	)
Overseas Fund		3,860			(16,100	)		12,240
Principal Capital Appreciation Fund		(186	)		(48,440	)		48,626
Principal LifeTime 2010 Fund		—			(6,745	)		6,745
Principal LifeTime 2015 Fund		(7	)		(3,826	)		3,833
Principal LifeTime 2020 Fund		(27	)		(24,491	)		24,518
Principal LifeTime 2025 Fund		(5	)		5			—
Principal LifeTime 2030 Fund		(45	)		(26,472	)		26,517
Principal LifeTime 2035 Fund		(8	)		(4,181	)		4,189
Principal LifeTime 2040 Fund		(2	)		(20,136	)		20,138
Principal LifeTime 2045 Fund		—			(2,800	)		2,800
Principal LifeTime 2050 Fund		(2	)		(10,817	)		10,819
Principal LifeTime 2055 Fund		—			(704	)		704
Principal LifeTime 2060 Fund		—			(589	)		589
Real Estate Securities Fund		684			(7,927	)		7,243
SAM Balanced Portfolio		(16	)		16			—
SAM Conservative Balanced Portfolio		(12	)		12			—
SAM Conservative Growth Portfolio		—			(14,911	)		14,911
SAM Flexible Income Portfolio		(16	)		16			—
SAM Strategic Growth Portfolio		(9	)		(10,647	)		10,656
Short-Term Income Fund		(10	)		317			(307	)
SmallCap Fund		—			(4,565	)		4,565
SmallCap Growth Fund I		5,196			(68,154	)		62,958
SmallCap S&P 600 Index Fund		17			(19,986	)		19,969
SmallCap Value Fund II		44			(51,634	)		51,590
Tax-Exempt Bond Fund		(53	)		3,721			(3,668	)

Federal Income Tax Basis. At October 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):


		Unrealized		Unrealized			Net Unrealized			Cost for Federal
		Appreciation		(Depreciation)			Appreciation (Depreciation)			Income Tax Purposes
California Municipal Fund^*	$	23,210	$	(3,677	)	$	19,533		$	434,909
Core Plus Bond Fund		91,271		(35,587	)		55,684			4,267,571
Diversified International Fund		873,179		(332,321	)		540,858			7,432,667
Equity Income Fund		1,843,162		(125,187	)		1,717,975			3,668,296
Finisterre Unconstrained Emerging Markets Bond Fund		192		(179	)		13			24,114
Global Diversified Income Fund		328,774		(408,609	)		(79,835	)		11,281,030
Global Real Estate Securities Fund		264,633		(116,833	)		147,800			2,982,143
Government & High Quality Bond Fund		29,769		(35,758	)		(5,989	)		1,558,119
High Yield Fund		125,055		(184,708	)		(59,653	)		3,624,480
High Yield Fund I		32,964		(28,577	)		4,387			952,028
Income Fund		126,192		(39,427	)		86,765			3,215,609
Inflation Protection Fund		32,525		(9,454	)		23,071			1,792,332
International Emerging Markets Fund		131,655		(22,806	)		108,849			869,515
International Fund I		57,418		(15,480	)		41,938			344,929
LargeCap Growth Fund		327,170		(37,415	)		289,755			1,796,367
LargeCap Growth Fund I		1,679,314		(197,478	)		1,481,836			5,567,468
LargeCap Growth Fund II		44,641		(17,056	)		27,585			491,784
LargeCap S&P 500 Index Fund		1,785,816		(155,041	)		1,630,775			3,318,027
LargeCap Value Fund		137,302		(63,798	)		73,504			2,279,638
LargeCap Value Fund III		159,489		(67,205	)		92,284			1,646,651
MidCap Fund		2,725,888		(346,772	)		2,379,116			9,063,497
MidCap Growth Fund		15,636		(2,637	)		12,999			117,684
MidCap Growth Fund III		131,533		(63,100	)		68,433			1,290,957
MidCap S&P 400 Index Fund		285,052		(98,466	)		186,586			1,018,375
MidCap Value Fund I		48,152		(39,998	)		8,154			1,097,165
MidCap Value Fund III		128,174		(60,508	)		67,666			1,139,318
Money Market Fund		—		—			—			746,996
Overseas Fund		213,685		(363,712	)		(150,027	)		3,231,579
Principal Capital Appreciation Fund		956,209		(21,969	)		934,240			1,523,178
Principal LifeTime 2010 Fund		101,310		(26,379	)		74,931			1,142,441
Principal LifeTime 2015 Fund		101,978		(6,533	)		95,445			664,971
Principal LifeTime 2020 Fund		573,374		(158,282	)		415,092			5,435,917
Principal LifeTime 2025 Fund		169,385		(27,989	)		141,396			1,551,610
Principal LifeTime 2030 Fund		664,651		(186,998	)		477,653			6,100,370
Principal LifeTime 2035 Fund		154,396		(28,019	)		126,377			1,163,676
Principal LifeTime 2040 Fund		564,597		(143,494	)		421,103			3,934,305
Principal LifeTime 2045 Fund		86,414		(23,552	)		62,862			788,082
Principal LifeTime 2050 Fund		282,076		(85,051	)		197,025			2,166,061
Principal LifeTime 2055 Fund		18,651		(10,738	)		7,913			297,422
Principal LifeTime 2060 Fund		2,689		(8,398	)		(5,709	)		161,262
Principal LifeTime Hybrid 2015 Fund		208		(83	)		125			12,106
Principal LifeTime Hybrid 2020 Fund		755		(353	)		402			43,164
Principal LifeTime Hybrid 2025 Fund		249		(127	)		122			12,764
Principal LifeTime Hybrid 2030 Fund		688		(478	)		210			45,593
Principal LifeTime Hybrid 2035 Fund		170		(125	)		45			9,848
Principal LifeTime Hybrid 2040 Fund		340		(303	)		37			23,758
Principal LifeTime Hybrid 2045 Fund		85		(111	)		(26	)		6,275
Principal LifeTime Hybrid 2050 Fund		198		(155	)		43			12,573
Principal LifeTime Hybrid 2055 Fund		32		(30	)		2			1,924
Principal LifeTime Hybrid 2060 Fund		16		(3	)		13			451
Principal LifeTime Hybrid Income Fund		82		(50	)		32			8,764
Principal LifeTime Strategic Income Fund		47,729		(6,180	)		41,549			645,328
Real Estate Securities Fund		606,553		(48,636	)		557,917			2,332,895
SAM Balanced Portfolio		688,576		(30,467	)		658,109			4,105,677
SAM Conservative Balanced Portfolio		162,735		(10,543	)		152,192			1,585,103
SAM Conservative Growth Portfolio		519,603		(29,824	)		489,779			2,511,373
SAM Flexible Income Portfolio		138,862		(19,930	)		118,932			2,414,467
SAM Strategic Growth Portfolio		294,334		(35,966	)		258,368			1,538,291
Short-Term Income Fund		23,709		(13,962	)		9,747			3,115,350
SmallCap Fund		103,215		(26,306	)		76,909			478,725
SmallCap Growth Fund I		215,833		(89,220	)		126,613			1,267,734
SmallCap S&P 600 Index Fund		254,314		(112,220	)		142,094			977,923
SmallCap Value Fund II		171,741		(83,934	)		87,807			1,127,586
Tax-Exempt Bond Fund^*		21,724		(3,652	)		18,072			403,566

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

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


Schedule of Investments
California Municipal Fund
October 31, 2016



		Principal						Principal
MUNICIPAL BONDS - 102.21%		Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)		Amount (000's)		Value(000	's)
California - 100.81%						California (continued)
Abag Finance Authority for Nonprofit Corps						California State University (credit support
5.00%, 08/01/2043	$	1,500	$	1,722		from AGM)
Alameda Community Improvement						5.00%, 11/01/2039^(a)	$	945	$	1,004
Commission Successor Agency (credit						5.00%, 11/01/2039^(a)		55		58
support from BAM)						California Statewide Communities
5.00%, 09/01/2031^(a)		1,000		1,178		Development Authority
Alameda Corridor Transportation Authority						4.00%, 02/01/2022		830		903
5.00%, 10/01/2034		2,000		2,343		4.00%, 02/01/2025		940		1,035
5.00%, 10/01/2036		1,250		1,456		5.00%, 10/01/2028		1,875		2,209
5.00%, 10/01/2037		4,000		4,652		5.00%, 03/01/2029		4,500		5,524
Alameda Unified School District-Alameda						5.00%, 02/01/2030		2,000		2,284
County/CA						5.00%, 05/15/2040		3,500		4,008
5.00%, 08/01/2032		1,795		2,180		5.00%, 12/01/2041^(e)		6,000		6,676
Alum Rock Union Elementary School						5.25%, 12/01/2029		3,000		3,414
District						5.25%, 12/01/2034		3,500		3,926
5.25%, 08/01/2043		1,000		1,197		7.25%, 11/15/2041^(e)		1,500		1,711
Anaheim Public Financing Authority						California Statewide Communities
5.25%, 10/01/2034		1,000		1,103		Development Authority (credit support from
Association of Bay Area Governments (credit						CA MTG INS)
support from XLCA)						6.25%, 08/15/2028^(a)		2,250		2,466
5.25%, 09/01/2029^(a)		130		130		California Statewide Communities
Bay Area Toll Authority						Development Authority (credit support from
0.59%, 04/01/2047^(b)		7,600		7,600		FHA INS)
5.13%, 04/01/2039		3,000		3,301		6.25%, 08/01/2024^(a)		795		909
California Educational Facilities Authority						California Statewide Financing Authority
5.00%, 12/29/2015^(c)		3,642		3,962		6.00%, 05/01/2043		2,050		2,065
5.00%, 10/01/2036		1,000		1,196		6.00%, 05/01/2043		1,550		1,575
5.00%, 01/01/2038^(c)		398		416		Chula Vista Municipal Financing Authority
5.00%, 01/01/2038^(c)		982		1,030		5.00%, 05/01/2030		1,900		2,323
5.00%, 10/01/2038^(c)		900		971		5.00%, 05/01/2031		1,885		2,290
5.00%, 10/01/2045		1,000		1,184		City of Alhambra CA (credit support from
5.25%, 10/01/2039^(c)		6,500		7,045		NATL)
5.38%, 04/01/2034		1,000		1,120		6.13%, 09/02/2018^(a)		1,175		1,195
California Health Facilities Financing						City of Bakersfield CA Wastewater
Authority						Revenue (credit support from AGM)
4.00%, 03/01/2039		2,500		2,593		5.00%, 09/15/2032^(a)		2,000		2,075
5.00%, 11/15/2031		2,700		3,250		City of Compton CA
5.00%, 08/15/2033		2,950		3,567		2.00%, 06/01/2017^(e)		9,000		8,989
5.00%, 08/15/2034^(d)		2,000		2,389		City of Compton CA Water Revenue
5.00%, 02/01/2035		2,000		2,308		6.00%, 08/01/2039		1,250		1,325
5.00%, 11/15/2046		5,000		5,867		City of Irvine CA
5.00%, 11/15/2046^(c)		4,500		5,254		5.00%, 09/01/2049		1,000		1,108
5.75%, 09/01/2039		2,000		2,267		City of Los Angeles Department of Airports
6.00%, 07/01/2039		2,000		2,235		5.00%, 05/15/2033		1,000		1,168
6.50%, 10/01/2038		985		1,091		5.00%, 05/15/2035		3,135		3,653
6.50%, 10/01/2038		15		17		5.00%, 05/15/2036		4,500		5,225
California Health Facilities Financing						5.00%, 05/15/2042		1,200		1,400
Authority (credit support from CA MTG INS)						5.13%, 05/15/2033		1,230		1,311
5.00%, 07/01/2035^(a)		1,000		1,177		City of Riverside CA Sewer Revenue
California Infrastructure & Economic						5.00%, 08/01/2040		4,000		4,645
Development Bank (credit support from						City of San Francisco CA Public Utilities
NATL ST INTERCEPT)						Commission Water Revenue
5.00%, 08/15/2018^(a)		500		502		5.00%, 11/01/2034		1,800		2,189
California Municipal Finance Authority						5.00%, 11/01/2036		2,010		2,358
5.00%, 11/01/2028		1,000		1,195		City of Torrance CA
California Pollution Control Financing						6.00%, 06/01/2022		1,000		1,013
Authority						City of Turlock CA
3.00%, 11/01/2025		9,425		9,860		5.13%, 10/15/2031		1,000		1,041
4.30%, 07/01/2040		1,500		1,617		5.13%, 10/15/2037		1,000		1,041
5.00%, 07/01/2030^(e)		2,000		2,224		City of Vernon CA Electric System Revenue
5.00%, 07/01/2037^(e)		4,000		4,423		5.13%, 08/01/2021		435		470
California School Finance Authority						5.13%, 08/01/2021		1,260		1,385
5.00%, 07/01/2035^(e)		1,925		2,162		Coachella Valley Unified School
5.00%, 08/01/2036^(e)		1,170		1,320		District/CA (credit support from AGM)
California State Public Works Board						0.00%, 08/01/2039^(a),(f)		7,800		3,320
5.00%, 11/01/2033		2,715		3,254		4.00%, 08/01/2045^(a)		4,000		4,294
5.00%, 11/01/2034		2,500		2,989		Compton Public Finance Authority
5.00%, 11/01/2037		1,375		1,598		4.50%, 09/01/2032^(e)		7,000		7,168
5.00%, 10/01/2039		4,500		5,265		Dinuba Financing Authority
California State University						5.38%, 09/01/2038		1,000		1,014
5.25%, 11/01/2038		2,000		2,214		Dinuba Redevelopment Agency (credit
						support from BAM)
						5.00%, 09/01/2033^(a)		2,000		2,337


Schedule of Investments
California Municipal Fund
October 31, 2016



		Principal						Principal
MUNICIPAL BONDS (continued)		Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)		Amount (000's)		Value(000	's)
California (continued)						California (continued)
East Bay Municipal Utility District Water						Palomar Health (continued)
System Revenue						5.00%, 11/01/2036	$	3,000	$	3,365
5.00%, 06/01/2036	$	1,000	$	1,132		5.00%, 11/01/2039		2,000		2,229
El Monte Union High School District (credit						Peralta Community College District
support from AGC)						4.00%, 08/01/2039		4,530		4,894
5.50%, 06/01/2034^(a)		2,000		2,232		Pittsburg Successor Agency Redevelopment
Escondido Union High School District						Agency (credit support from AGM)
0.00%, 08/01/2041^(f)		1,000		397		5.00%, 09/01/2028^(a)		1,000		1,232
Fontana Redevelopment Agency (credit						5.00%, 09/01/2029^(a)		1,000		1,220
support from NATL)						Pittsburg Unified School District
5.20%, 09/01/2030^(a)		1,000		1,003		0.00%, 08/01/2036^(f)		1,365		663
Foothill-De Anza Community College						5.00%, 08/01/2043		2,900		3,412
District						Pittsburg Unified School District (credit
5.00%, 08/01/2040		1,500		1,769		support from AGM)
Golden State Tobacco Securitization Corp						5.50%, 08/01/2031^(a)		1,000		1,081
4.50%, 06/01/2027		5,565		5,577		Pomona Public Financing Authority (credit
5.30%, 06/01/2037		1,000		993		support from NATL)
5.75%, 06/01/2047		14,600		14,374		5.00%, 02/01/2021^(a)		5,000		5,018
Golden State Tobacco Securitization						Pomona Unified School District (credit
Corp (credit support from ST APPROP)						support from NATL)
5.00%, 06/01/2033^(a)		2,000		2,357		6.15%, 08/01/2030^(a)		1,000		1,228
5.00%, 06/01/2045^(a)		7,500		8,677		Port Commission of the City & County of San
Indio Redevelopment Agency						Francisco
5.63%, 08/15/2035		1,355		1,455		4.00%, 03/01/2035		1,000		1,049
Inland Valley Development Agency						Port of Los Angeles
5.25%, 09/01/2037		1,000		1,161		5.00%, 08/01/2032		1,740		2,027
La Verne Public Financing Authority						Poway Unified School District
7.25%, 09/01/2026		765		768		0.00%, 08/01/2036^(f)		4,000		1,992
Lancaster Redevelopment Agency Successor						Regents of the University of California
Agency						Medical Center Pooled Revenue
6.88%, 08/01/2039		545		632		0.59%, 05/15/2047^(b)		10,000		10,000
6.88%, 08/01/2039		455		516		Richmond Joint Powers Financing Authority
Los Angeles County Public Works Financing						6.25%, 07/01/2024		1,000		1,125
Authority						Rio Elementary School District/CA (credit
5.00%, 12/01/2033		2,000		2,397		support from AGM)
5.00%, 08/01/2042		1,400		1,640		5.00%, 08/01/2027^(a)		425		532
5.00%, 12/01/2045^(c)		5,500		6,479		Ripon Unified School District (credit support
Los Angeles County Sanitation Districts						from BAM)
Financing Authority						0.00%, 08/01/2033^(a),(f)		1,110		525
5.00%, 10/01/2035		4,500		5,331		Riverside Community Properties Development
Los Angeles Department of Water						Inc
5.00%, 07/01/2034^(c)		5,000		6,032		6.00%, 10/15/2038		1,000		1,219
5.38%, 07/01/2038		1,000		1,091		Riverside County Public Financing
Los Angeles Department of Water & Power						Authority (credit support from BAM)
0.49%, 07/01/2035^(b)		3,925		3,925		5.00%, 10/01/2028^(a)		1,000		1,214
5.00%, 07/01/2045		1,250		1,484		5.00%, 10/01/2029^(a)		1,500		1,809
Los Angeles Unified School District/CA						5.00%, 10/01/2030^(a)		1,500		1,797
5.00%, 07/01/2029		2,000		2,210		Riverside County Transportation
Los Angeles Unified School						Commission
District/CA (credit support from AGM)						5.00%, 06/01/2032		1,500		1,697
5.00%, 07/01/2032^(a)		1,000		1,029		Rocklin Unified School District (credit
Marin Healthcare District						support from NATL)
5.00%, 08/01/2034		1,000		1,199		0.00%, 08/01/2019^(a),(f)		1,360		1,187
Merced Union High School District						0.00%, 08/01/2020^(a),(f)		1,415		1,171
0.00%, 08/01/2032^(f)		3,380		2,015		0.00%, 08/01/2023^(a),(f)		1,225		864
Morongo Band of Mission Indians/The						Salinas Valley Solid Waste Authority (credit
6.50%, 03/01/2028^(e)		1,000		1,063		support from AGM)
Needles Public Utility Authority						5.50%, 08/01/2031^(a)		1,500		1,775
6.50%, 02/01/2022		1,880		1,881		San Diego Community College District
Norco Community Redevelopment Agency						5.25%, 08/01/2033^(c)		1,950		2,177
Successor Agency (credit support from BAM)						San Diego Public Facilities Financing
5.00%, 03/01/2032^(a)		1,000		1,163		Authority Sewer Revenue
Norco Financing Authority (credit support						5.00%, 05/15/2038		2,000		2,411
from AGM)						San Diego Public Facilities Financing
5.63%, 10/01/2034^(a)		1,000		1,112		Authority Water Revenue
Oakland Unified School District/Alameda						5.38%, 08/01/2034		2,000		2,238
County						San Diego Redevelopment Agency Successor
5.00%, 08/01/2040		3,400		3,983		Agency
Palm Desert Financing Authority (credit						6.40%, 09/01/2019		775		778
support from NATL)						San Diego Unified School District/CA
5.00%, 08/01/2022^(a)		1,280		1,292		4.00%, 07/01/2045		5,395		5,795
Palomar Health
4.00%, 08/01/2037		500		538


		Principal							Principal
MUNICIPAL BONDS (continued)		Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)		Amount (000's)			Value (000's)
California (continued)						California (continued)
San Francisco Bay Area Rapid Transit						West Sacramento Financing Authority
District							5.00%, 09/01/2029	$	465		$	544
4.00%, 08/01/2033	$	5,000	$	5,594		Western Municipal Water District Facilities
5.00%, 07/01/2028		1,755		1,976		Authority
San Francisco City & County Airport Comm-							5.00%, 10/01/2034		1,700			1,894
San Francisco International Airport						Woodland-Davis Clean Water Agency (credit
5.00%, 05/01/2031		1,000		1,220		support from AGM)
5.00%, 05/01/2039		5,000		5,692			5.00%, 03/01/2039^(a)		1,500			1,759
5.00%, 05/01/2041		10,000		11,482							$	466,208
San Francisco City & County Redevelopment						Guam - 0.62%
Agency						Guam Government Waterworks Authority
5.00%, 08/01/2044		1,500		1,663			5.00%, 01/01/2046		2,525			2,871
6.50%, 08/01/2039		1,000		1,149
San Joaquin Hills Transportation Corridor						Virgin Islands - 0.78%
Agency						Virgin Islands Public Finance Authority
5.00%, 01/15/2034		3,030		3,458			5.00%, 10/01/2030		3,700			3,607
San Luis Obispo County Financing
Authority (credit support from AGM)						TOTAL MUNICIPAL BONDS					$	472,686
5.00%, 08/01/2030^(a)		1,000		1,145
						Total Investments					$	472,686
San Luis Obispo County Financing						Liability for Floating Rate Notes Issued in Conjunction with
Authority (credit support from BAM)						Securities Held - (3.94)%
5.00%, 09/01/2037^(a)		1,000		1,163
						Notes with interest rates of 0.66% - 0.68% at		$	(18,241	)	$	(18,241	)
Santa Clara County Financing Authority						October 31, 2016 and contractual maturity of
5.25%, 05/15/2036		2,000		2,134		collateral of 2017-2034.^(g)
Santa Margarita Water District						Total Net Investments					$	454,445
5.00%, 09/01/2038		465		519		Other Assets and Liabilities - 1.73%					$	8,005
Semitropic Improvement District						TOTAL NET ASSETS - 100.00%					$	462,450
5.00%, 12/01/2038		2,000		2,221
Simi Valley Unified School District
5.00%, 08/01/2027^(d)		1,000		1,240
						(a)	Credit support indicates investments that benefit from credit enhancement
Southern California Public Power Authority							or liquidity support provided by a third party bank, institution, or
5.00%, 11/01/2029		2,380		2,895			government agency.
5.25%, 07/01/2029		695		821		(b)	Variable Rate. Rate shown is in effect at October 31, 2016.
5.25%, 07/01/2031		695		815		(c)	Security or portion of underlying security related to Inverse Floaters
State of California							entered into by the Fund. See Notes to Financial Statements for additional
2.45%, 12/01/2031		965		980			information.
5.00%, 02/01/2038		1,450		1,683		(d)	Security purchased on a when-issued basis.
5.00%, 04/01/2043		3,380		3,921		(e)	Security exempt from registration under Rule 144A of the Securities Act of
5.25%, 11/01/2040		1,500		1,722			1933. These securities may be resold in transactions exempt from
5.75%, 04/01/2031		675		749			registration, normally to qualified institutional buyers. At the end of the
6.00%, 03/01/2033		2,000		2,321			period, the value of these securities totaled $35,736 or 7.73% of net assets.
6.00%, 04/01/2038		3,000		3,347		(f)	Non-Income Producing Security
State of California Department of Water						(g)	Floating rate securities. The interest rate(s) shown reflect the rates in
Resources							effect at October 31, 2016.
5.00%, 12/01/2028		1,615		1,721
5.00%, 12/01/2028		65		69
Stockton East Water District (credit support
from NATL)							Portfolio Summary (unaudited)
5.25%, 04/01/2022^(a)		1,780		1,784		Sector						Percent
Stockton Unified School District (credit						Revenue Bonds						65.54	%
support from AGM)						Insured						14.91	%
5.00%, 08/01/2038^(a)		1,500		1,731		General Obligation Unlimited						11.72	%
Tobacco Securitization Authority of Southern						Prerefunded						6.71	%
California						General Obligation Limited Notes						1.94	%
5.13%, 06/01/2046		1,500		1,461		Special Tax						0.83	%
Travis Unified School District (credit support						Tax Allocation						0.56	%
from AGM)						Liability For Floating Rate Notes Issued						(3.94	)%
5.00%, 09/01/2029^(a)		1,000		1,205		Other Assets and Liabilities						1.73	%
Tulare County Transportation Authority						TOTAL NET ASSETS						100.00	%
5.00%, 02/01/2029		1,000		1,207
Tustin Public Financing Authority
5.00%, 04/01/2041		1,000		1,168
University of California
4.00%, 05/15/2046		5,000		5,365
5.00%, 05/15/2037		3,000		3,613
5.00%, 05/15/2044		1,000		1,160
5.25%, 05/15/2039^(c)		857		952
5.25%, 05/15/2039^(c)		1,657		1,837
5.25%, 05/15/2039^(c)		487		540
Walnut Energy Center Authority
5.00%, 01/01/2035		1,225		1,351
West Hollywood Public Financing Authority
5.00%, 04/01/2036		1,500		1,778


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	COMMON STOCKS - 0.04%		Shares Held		Value(000			's)			Principal
	Forest Products & Paper - 0.01%								BONDS (continued)		Amount (000's) Value (000's)
	Verso Corp ^(a)			61,185	$		376		Airlines - 0.46%
	Verso Corp - Warrants ^(a),(b)			1,355			—		American Airlines 2013-1 Class B Pass
					$		376		Through Trust
									5.63%, 01/15/2021^(f)	$	1,283	$	1,341
	Oil & Gas Services - 0.03%
	Seventy Seven Energy Inc ^(a),(c)			45,353			1,088		American Airlines 2013-2 Class A Pass
									Through Trust
	TOTAL COMMON STOCKS				$		1,464		4.95%, 07/15/2024		1,590		1,735
	INVESTMENT COMPANIES - 2.22%		Shares Held		Value(000			's)	American Airlines 2014-1 Class A Pass
	Money Market Funds - 2.22%								Through Trust
	Goldman Sachs Financial Square Funds -		89,112,771				89,113		3.70%, 04/01/2028		1,386		1,441
	Government Fund								American Airlines 2015-1 Class A Pass
									Through Trust
									3.38%, 11/01/2028		4,820		4,917
	TOTAL INVESTMENT COMPANIES				$		89,113
									American Airlines 2015-1 Class B Pass
	PREFERRED STOCKS - 0.44%		Shares Held		Value(000			's)
									Through Trust
	Banks- 0.37	%							3.70%, 11/01/2024		245		241
	Bank of America Corp 6.50%^(d)			35,000	$		941
	CoBank ACB 6.20%^(d),(e)			35,000			3,676		American Airlines 2016-3 Class A Pass
	Morgan Stanley 6.38%^(d),(e)			145,000			4,002		Through Trust
	State Street Corp 5.90%^(d),(e)			225,000			6,311		3.25%, 04/15/2030		1,175		1,184
									United Airlines 2014-1 Class A Pass Through
					$		14,930		Trust
	Electric - 0.04%								4.00%, 10/11/2027		2,503		2,660
	SCE Trust III 5.75%^(d),(e)			50,000			1,435
									United Airlines 2014-2 Class A Pass Through
									Trust
	Telecommunications - 0.03%								3.75%, 03/03/2028		2,290		2,406
	Verizon Communications Inc 5.90%			50,000			1,340		United Airlines 2016-1 Class AA Pass
									Through Trust
	TOTAL PREFERRED STOCKS				$		17,705		3.10%, 01/07/2030		940		964
			Principal						US Airways 2001-1G Pass Through Trust
	BONDS- 67.99	%	Amount (000's)		Value(000			's)	7.08%, 09/20/2022		148		158
	Advertising - 0.02%								US Airways 2013-1 Class A Pass Through
	MDC Partners Inc								Trust
	6.50%, 05/01/2024^(f)		$	980		$	835		3.95%, 05/15/2027		1,259		1,329
											$		18,376
	Aerospace & Defense - 0.13%								Apparel - 0.04%
	Air 2 US								Hanesbrands Inc
	8.03%, 10/01/2020^(f)			119			124		4.63%, 05/15/2024^(f)		225		229
	8.63%, 10/01/2020^(f)			131			136
									NIKE Inc
	BAE Systems PLC								3.88%, 11/01/2045		1,455		1,517
	4.13%, 06/08/2022		GBP	100			137				$		1,746
	Lockheed Martin Corp								Automobile Asset Backed Securities - 7.43%
	2.50%, 11/23/2020		$	2,720			2,790		Ally Auto Receivables Trust 2014-SN2
	4.70%, 05/15/2046			633			718		1.03%, 09/20/2017^(e)		3,242		3,243
	United Technologies Corp								1.21%, 02/20/2019^(e)		7,300		7,304
	4.50%, 06/01/2042			1,340			1,468		Ally Auto Receivables Trust 2016-2
					$		5,373		1.35%, 05/15/2020		10,500		10,527
	Agriculture - 1.10%								AmeriCredit Automobile Receivables 2015-4
	Altria Group Inc								2.11%, 01/08/2021^(e)		1,575		1,588
	2.63%, 09/16/2026			770			764		AmeriCredit Automobile Receivables 2016-1
	3.88%, 09/16/2046			3,410			3,357		1.28%, 06/10/2019^(e)		4,916		4,928
	4.50%, 05/02/2043			2,485			2,688		1.52%, 06/10/2019		2,193		2,197
	BAT International Finance PLC								AmeriCredit Automobile Receivables Trust
	2.75%, 06/15/2020^(f)			485			497
									2014-2
	Imperial Brands Finance PLC								2.18%, 06/08/2020		2,000		2,018
	2.25%, 02/26/2021		EUR	400			471		AmeriCredit Automobile Receivables Trust
	3.38%, 02/26/2026			150			196		2015-2
	3.75%, 07/21/2022^(f)		$	3,065			3,233		2.40%, 01/08/2021^(e)		7,850		7,931
	4.25%, 07/21/2025^(f)			4,210			4,537
									AmeriCredit Automobile Receivables Trust
	4.88%, 06/07/2032		GBP	150			225		2015-3
	5.50%, 09/28/2026			100			153		1.04%, 01/08/2019^(e)		554		555
	Philip Morris International Inc								AmeriCredit Automobile Receivables Trust
	1.88%, 02/25/2021		$	5,295			5,298		2016-2
	4.38%, 11/15/2041			280			297		1.23%, 10/08/2019^(e)		5,933		5,946
	Pinnacle Operating Corp								2.87%, 11/08/2021^(e)		4,325		4,406
	9.00%, 11/15/2020^(f)			1,785			1,107
									AmeriCredit Automobile Receivables Trust
	Reynolds American Inc								2016-3
	3.25%, 06/12/2020			1,558			1,627		1.09%, 11/08/2019^(e)		7,500		7,512
	4.45%, 06/12/2025			6,600			7,245		Americredit Automobile Receivables Trust
	5.70%, 08/15/2035			3,825			4,625		2016-4
	5.85%, 08/15/2045			2,145			2,667		2.41%, 07/08/2022^(e)		7,000		7,004
	6.88%, 05/01/2020			4,545			5,283		Capital Auto Receivables Asset Trust 2014-2
					$		44,270		1.26%, 05/21/2018^(e)		1,545		1,545
									Capital Auto Receivables Asset Trust 2015-2
									0.93%, 10/20/2017^(e)		2,568		2,568


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Automobile Asset Backed Securities (continued)						Automobile Asset Backed Securities (continued)
Capital Auto Receivables Asset Trust 2016-1						Santander Drive Auto Receivables Trust 2014-
1.23%, 11/20/2018^(e)		$	7,394	$	7,409	1
Capital Auto Receivables Asset Trust 2016-2						2.36%, 04/15/2020	$	1,000	$	1,005
1.12%, 01/22/2019^(e)			2,700		2,705	Santander Drive Auto Receivables Trust 2014-
Capital Auto Receivables Asset Trust 2016-3						5
0.95%, 04/22/2019^(e)			3,600		3,601	1.77%, 09/16/2019		4,000		4,009
CarMax Auto Owner Trust 2014-4						2.46%, 06/15/2020		4,000		4,044
1.25%, 11/15/2019			5,981		5,988	Santander Drive Auto Receivables Trust 2016-
2.44%, 11/16/2020			2,000		2,018	1
CarMax Auto Owner Trust 2015-1						1.31%, 07/15/2019^(e)		5,013		5,025
0.88%, 03/15/2018^(e)			200		200	Santander Drive Auto Receivables Trust 2016-
CarMax Auto Owner Trust 2015-2						2
0.81%, 06/15/2018^(e)			2,058		2,058	1.18%, 07/15/2019^(e)		13,824		13,846
Chesapeake Funding II LLC						2.66%, 11/15/2021^(e)		3,500		3,548
1.67%, 03/15/2028^(e),(f)			8,000		8,064	Santander Drive Auto Receivables Trust 2016-
Chesapeake Funding LLC						3
0.95%, 03/07/2026^(e),(f)			10,688		10,686	1.34%, 11/15/2019		750		750
0.98%, 01/07/2025^(e),(f)			978		978	SunTrust Auto Receivables Trust 2015-1
1.03%, 02/07/2027^(e),(f)			10,137		10,123	0.99%, 06/15/2018^(e),(f)		2,592		2,592
Chrysler Capital Auto Receivables Trust 2015-						Volkswagen Auto Lease Trust 2015-A
B						0.85%, 06/20/2017^(e)		963		963
1.46%, 12/17/2018^(f)			3,589		3,593	1.25%, 12/20/2017		14,540		14,543
Drive Auto Receivables Trust 2016-A						Volkswagen Auto Loan Enhanced Trust 2014-
3.17%, 05/15/2020^(e),(f)			1,000		1,013	1
Enterprise Fleet Financing LLC						0.91%, 10/22/2018		1,159		1,158
1.59%, 02/22/2021^(e),(f)			2,641		2,645	Wheels SPV 2 LLC
Ford Credit Auto Lease Trust 2016-A						0.85%, 08/20/2017^(f)		1,788		1,788
1.07%, 11/15/2018^(e)			6,763		6,777	World Omni Auto Receivables Trust 2014-B
Ford Credit Auto Owner Trust 2016-A						1.14%, 01/15/2020		7,673		7,674
1.39%, 07/15/2020			1,620		1,624	World Omni Automobile Lease Securitization
GM Financial Automobile Leasing Trust						Trust 2016-A
2014-1						0.94%, 02/15/2019^(e)		12,750		12,779
1.76%, 05/21/2018^(f)			4,339		4,340			$		298,530
1.99%, 05/21/2018^(f)			2,000		2,001	Automobile Floor Plan Asset Backed Securities - 0.80%
GM Financial Automobile Leasing Trust						Ally Master Owner Trust
2014-2						1.60%, 10/15/2019		8,000		8,026
1.22%, 01/22/2018^(e),(f)			7,467		7,470	Ford Credit Floorplan Master Owner Trust A
1.96%, 03/20/2018^(f)			1,500		1,506	0.93%, 02/15/2019^(e)		10,105		10,110
2.43%, 03/20/2018^(f)			4,250		4,272	Nissan Master Owner Trust Receivables
GM Financial Automobile Leasing Trust						0.93%, 01/15/2020^(e)		3,500		3,504
2016-2						Wells Fargo Dealer Floorplan Master Note
1.03%, 10/22/2018^(e)			5,500		5,507	Trust
GM Financial Automobile Leasing Trust						0.91%, 07/20/2019^(e)		10,575		10,581
2016-3								$		32,221
0.89%, 02/20/2019^(e)			9,000		9,009
						Automobile Manufacturers - 1.68%
1.97%, 05/20/2020^(e)			2,100		2,098	Daimler AG
2.38%, 05/20/2020^(e)			1,250		1,248
						2.00%, 04/07/2020	EUR	500		585
Hertz Fleet Lease Funding LP						Daimler Finance North America LLC
0.93%, 04/10/2028^(e),(f)			2,534		2,533	1.65%, 03/02/2018^(f)	$	2,830		2,836
1.08%, 12/10/2027^(e),(f)			3,929		3,929	2.25%, 03/02/2020^(f)		1,730		1,749
Honda Auto Receivables 2015-3 Owner						Daimler International Finance BV
Trust						3.50%, 06/06/2019	GBP	150		195
0.92%, 11/20/2017			980		979	Ford Motor Credit Co LLC
Hyundai Auto Lease Securitization Trust						2.60%, 11/04/2019	$	2,375		2,404
2016	-A					4.39%, 01/08/2026		775		816
1.08%, 07/16/2018^(e),(f)			19,570		19,617
						8.00%, 12/15/2016		11,315		11,403
Mercedes Benz Auto Lease Trust 2015-B						General Motors Co
1.05%, 01/16/2018^(e)			2,476		2,477	3.50%, 10/02/2018		7,240		7,433
MMCA Auto Owner Trust 2014-A						4.88%, 10/02/2023		2,488		2,679
1.21%, 12/16/2019^(e),(f)			3,191		3,193
						6.25%, 10/02/2043		530		607
1.92%, 12/16/2019^(f)			330		332	6.60%, 04/01/2036		2,295		2,713
Nissan Auto Lease Trust 2016-B						General Motors Financial Co Inc
0.81%, 12/17/2018^(e)			6,750		6,752
						0.96%, 09/07/2023	EUR	750		816
Nissan Auto Receivables 2013-C Owner						2.63%, 07/10/2017	$	3,695		3,725
Trust						3.25%, 05/15/2018		2,185		2,224
0.67%, 08/15/2018^(e)			502		501
						3.45%, 04/10/2022		1,280		1,294
Nissan Auto Receivables 2015-A Owner						4.25%, 05/15/2023		2,215		2,299
Trust						4.30%, 07/13/2025		2,230		2,281
1.05%, 10/15/2019^(e)			4,212		4,212
						Jaguar Land Rover Automotive PLC
OneMain Direct Auto Receivables Trust 2016-						3.50%, 03/15/2020^(f)		800		814
1						5.63%, 02/01/2023^(f)		3,065		3,171
2.04%, 01/15/2021^(e),(f)			4,064		4,076
						Navistar International Corp
						8.25%, 11/01/2021		1,475		1,444


		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Automobile Manufacturers (continued)						Banks (continued)
Nissan Motor Acceptance Corp						Cooperatieve Rabobank UA	(continued)
1.39%, 03/03/2017^(e),(f)		$	3,000	$	3,005	4.63%, 05/23/2029		GBP	250	$	328
Toyota Motor Credit Corp						5.25%, 09/14/2027			125		173
1.27%, 01/17/2019^(e)			1,320		1,323	5.25%, 08/04/2045		$	5,270		5,939
Volkswagen Group of America Finance LLC						5.50%, 01/22/2049^(d),(e)		EUR	425		469
1.25%, 11/20/2017^(e),(f)			10,000		9,971	11.00%, 12/29/2049 ^(d),(e),(f)		$	1,560		1,880
Volkswagen International Finance NV						Corp Financiera de Desarrollo SA
1.13%, 11/18/2016^(f)			1,625		1,625	4.75%, 07/15/2025^(f)			475		524
			$		67,412	Credit Suisse AG/Guernsey
Automobile Parts & Equipment - 0.15%						5.86%, 12/31/2049^(d)			3,750		3,807
Allison Transmission Inc						Discover Bank/Greenwood DE
5.00%, 10/01/2024^(f)			1,050		1,071	2.60%, 11/13/2018			5,500		5,586
Dana Inc						Fifth Third Bank/Cincinnati OH
5.50%, 12/15/2024			1,590		1,646	2.88%, 10/01/2021			3,125		3,241
Delphi Automotive PLC						First Horizon National Corp
1.60%, 09/15/2028		EUR	300		328	3.50%, 12/15/2020			4,420		4,501
IHO Verwaltungs GmbH						First Republic Bank/CA
4.75%, PIK 5.50%, 09/15/2026^(f),(g)		$	305		304	4.38%, 08/01/2046			6,820		6,529
Nemak SAB de CV						Global Bank Corp
5.50%, 02/28/2023^(f)			700		727	4.50%, 10/20/2021^(f)			1,375		1,369
ZF North America Capital Inc						Goldman Sachs Group Inc/The
4.00%, 04/29/2020^(f)			305		321	2.60%, 04/23/2020			2,590		2,633
4.50%, 04/29/2022^(f)			195		206	2.64%, 10/28/2027^(e)			3,035		3,041
4.75%, 04/29/2025^(f)			1,255		1,324	3.85%, 07/08/2024			4,405		4,648
			$		5,927	4.25%, 10/21/2025			2,960		3,097
Banks- 8.53	%					4.25%, 01/29/2026		GBP	100		134
Associated Banc-Corp						4.75%, 10/21/2045		$	2,240		2,464
2.75%, 11/15/2019			1,965		1,996	5.15%, 05/22/2045			2,775		2,998
4.25%, 01/15/2025			2,710		2,804	5.38%, 03/15/2020			2,415		2,666
						5.38%, 12/29/2049^(d),(e)			8,445		8,487
Banco Santander SA
6.25%, 03/12/2049^(d),(e)		EUR	600		612	5.95%, 01/15/2027			1,725		2,013
6.37%, 05/29/2049^(d),(e)		$	3,400		3,146	6.75%, 10/01/2037			735		927
Bank of America Corp						HSBC Holdings PLC
2.63%, 04/19/2021			8,930		9,037	2.95%, 05/25/2021			2,175		2,208
3.50%, 04/19/2026			1,845		1,894	3.60%, 05/25/2023			2,575		2,660
3.95%, 04/21/2025			3,315		3,403	Huntington National Bank/The
4.20%, 08/26/2024			5,320		5,559	1.31%, 04/24/2017^(e)			12,100		12,094
4.25%, 10/22/2026			2,906		3,053	ING Bank NV
5.13%, 12/29/2049^(d),(e)			3,050		3,007	1.54%, 10/01/2019^(e),(f)			3,000		3,003
6.10%, 12/29/2049^(d),(e)			5,955		6,222	2.00%, 11/26/2018^(f)			2,540		2,552
6.25%, 09/29/2049^(d),(e)			3,595		3,766	2.70%, 08/17/2020^(f)			490		501
						5.80%, 09/25/2023^(f)			1,800		2,024
7.00%, 07/31/2028		GBP	100		169
Bank of New York Mellon Corp/The						ING Groep NV
						6.00%, 12/29/2049^(d),(e)			1,200		1,188
2.50%, 04/15/2021		$	965		984
4.62%, 12/29/2049^(d),(e)			3,210		3,134	Intesa Sanpaolo SpA
4.95%, 12/29/2049^(d),(e)			10,420		10,667	3.93%, 09/15/2026		EUR	650		718
						5.02%, 06/26/2024^(f)		$	5,845		5,424
Barclays PLC
8.25%, 12/29/2049^(d),(e)			1,080		1,094	5.71%, 01/15/2026^(f)			2,630		2,505
BBVA Banco Continental SA						JPMorgan Chase & Co
5.00%, 08/26/2022^(f)			975		1,072	2.70%, 05/18/2023			450		451
BBVA Subordinated Capital SAU						2.75%, 08/24/2022		EUR	300		371
3.50%, 04/11/2024^(e)		EUR	200		230	3.50%, 12/18/2026		GBP	100		133
BPCE SA						4.13%, 12/15/2026		$	4,120		4,348
2.65%, 02/03/2021		$	2,205		2,260	4.25%, 10/01/2027			2,625		2,792
2.75%, 11/30/2027^(e)		EUR	300		342	4.95%, 06/01/2045			3,800		4,176
						5.00%, 12/29/2049^(d),(e)			3,625		3,553
5.25%, 04/16/2029		GBP	200		268
						5.30%, 12/29/2049^(d),(e)			4,221		4,284
Citigroup Inc
2.70%, 03/30/2021		$	4,270		4,344	5.63%, 08/16/2043			2,250		2,640
3.20%, 10/21/2026			2,490		2,484	Lloyds Banking Group PLC
3.40%, 05/01/2026			1,985		2,018	4.65%, 03/24/2026			3,074		3,164
4.60%, 03/09/2026			1,385		1,478	Morgan Stanley
4.75%, 05/18/2046			700		721	1.75%, 03/11/2024		EUR	500		572
						2.28%, 10/24/2023^(e)		$	3,235		3,231
Citizens Bank NA/Providence RI
2.30%, 12/03/2018			1,670		1,688	2.38%, 07/23/2019			6,435		6,523
CoBank ACB						2.38%, 03/31/2021		EUR	500		594
6.25%, 12/29/2049^(d),(e)			1,270		1,374	2.50%, 04/21/2021		$	2,590		2,610
Compass Bank						3.13%, 07/27/2026			2,630		2,617
1.85%, 09/29/2017			2,675		2,673	4.00%, 07/23/2025			3,290		3,506
2.75%, 09/29/2019			2,125		2,127	4.30%, 01/27/2045			3,140		3,288
Cooperatieve Rabobank UA						4.88%, 11/01/2022			3,270		3,592
3.95%, 11/09/2022			825		865	5.00%, 11/24/2025			11,920		13,185
						5.55%, 12/29/2049^(d),(e)			2,700		2,764
4.38%, 08/04/2025			2,000		2,106
4.63%, 12/01/2023			2,800		3,017


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Banks (continued)					Beverages (continued)
Nordea Bank AB					Molson Coors Brewing Co
4.62%, 02/15/2022^(e)	EUR	400	$	445	1.25%, 07/15/2024	EUR	175	$	195
PNC Bank NA					PepsiCo Inc
6.00%, 12/07/2017	$	7,400		7,756	4.45%, 04/14/2046	$	915		1,021
PNC Financial Services Group Inc/The					Pernod Ricard SA
5.00%, 12/29/2049^(d),(e),(h)		2,540		2,536	5.75%, 04/07/2021^(f)		1,045		1,194
Popular Inc							$		52,379
7.00%, 07/01/2019		900		933	Biotechnology - 0.34%
RBC USA Holdco Corp					Amgen Inc
5.25%, 09/15/2020		1,815		2,030	4.66%, 06/15/2051^(f)		1,960		2,004
Royal Bank of Scotland Group PLC					Celgene Corp
5.13%, 05/28/2024		410		406	2.13%, 08/15/2018		815		823
7.64%, 03/29/2049^(d),(e)		390		378	2.88%, 08/15/2020		3,375		3,482
7.65%, 08/29/2049^(d),(e)		2,275		2,690	4.63%, 05/15/2044		665		670
Santander Issuances SAU					5.00%, 08/15/2045		2,340		2,511
2.50%, 03/18/2025	EUR	100		108	5.25%, 08/15/2043		115		129
Santander UK PLC					Genzyme Corp
1.26%, 09/29/2017^(e)	$	7,000		6,990	5.00%, 06/15/2020		810		902
1.88%, 02/17/2020	GBP	100		123	Gilead Sciences Inc
Skandinaviska Enskilda Banken AB					2.50%, 09/01/2023		30		30
2.45%, 05/27/2020^(f)	$	240		244	3.05%, 12/01/2016		840		841
2.63%, 11/17/2020^(f)		320		327	4.15%, 03/01/2047		1,710		1,697
2.63%, 03/15/2021		285		292	4.60%, 09/01/2035		620		666
5.75%, 11/29/2049^(d),(e)		10,195		10,220			$		13,755
7.09%, 12/29/2049^(d),(e)	EUR	250		294
					Building Materials - 0.57%
Svenska Handelsbanken AB					BMC East LLC
2.66%, 01/15/2024^(e)		500		573	5.50%, 10/01/2024^(f)		925		939
5.25%, 12/29/2049^(d),(e)	$	2,500		2,500
					Boise Cascade Co
UBS AG					5.63%, 09/01/2024^(f)		840		849
4.75%, 02/12/2026^(e)	EUR	250		293
					Cemex SAB de CV
UBS AG/Jersey					5.70%, 01/11/2025^(f)		325		331
7.25%, 02/22/2022^(e)	$	4,840		4,910	5.70%, 01/11/2025		675		687
UBS AG/Stamford CT					6.13%, 05/05/2025^(f)		1,220		1,263
2.35%, 03/26/2020		3,575		3,628	7.25%, 01/15/2021^(f)		455		489
UBSGroup FundingJerseyLtd					CRH America Inc
2.65%, 02/01/2022^(f)		3,290		3,272
					8.13%, 07/15/2018		3,425		3,792
2.95%, 09/24/2020^(f)		4,290		4,379	CRH Finance DAC
4.13%, 04/15/2026^(f)		220		230
					3.13%, 04/03/2023	EUR	250		317
Wells Fargo & Co					Crh Finance UK PLC
2.12%, 10/31/2023^(e)		2,590		2,583	4.13%, 12/02/2029^(e)	GBP	200		278
2.50%, 03/04/2021		1,345		1,360	CRH Finland Services OYJ
2.60%, 07/22/2020		1,540		1,569	2.75%, 10/15/2020	EUR	250		299
3.00%, 10/23/2026		2,850		2,830	LafargeHolcim Finance US LLC
3.90%, 05/01/2045		25		25	3.50%, 09/22/2026^(f)	$	875		880
4.40%, 06/14/2046		3,955		3,967	4.75%, 09/22/2046^(f)		850		858
4.90%, 11/17/2045		3,650		3,924	Louisiana-Pacific Corp
5.87%, 12/29/2049^(d),(e)		1,350		1,450	4.88%, 09/15/2024^(f)		165		162
5.90%, 12/29/2049^(d),(e)		2,075		2,171
					Martin Marietta Materials Inc
Westpac Banking Corp					1.94%, 06/30/2017^(e)		9,280		9,300
1.14%, 05/19/2017^(e)		6,650		6,656
					Masco Corp
		$		342,431	3.50%, 04/01/2021		50		51
Beverages - 1.30%					4.38%, 04/01/2026		995		1,035
Anheuser-Busch Cos LLC					Norbord Inc
5.60%, 03/01/2017		1,090		1,107	5.38%, 12/01/2020^(f)		650		680
Anheuser-Busch InBev Finance Inc					St Marys Cement Inc Canada
2.65%, 02/01/2021		11,510		11,771	5.75%, 01/28/2027^(f)		800		808
3.30%, 02/01/2023		3,755		3,919			$		23,018
3.65%, 02/01/2026		9,170		9,649	Chemicals - 0.61%
4.70%, 02/01/2036		7,035		7,799	A Schulman Inc
4.90%, 02/01/2046		7,285		8,331	6.88%, 06/01/2023^(f)		675		687
Anheuser-Busch InBev SA/NV/old					Air Liquide Finance SA
1.50%, 04/18/2030	EUR	475		529	1.75%, 09/27/2021^(f)		4,065		4,013
4.00%, 09/24/2025	GBP	150		211	Air Products & Chemicals Inc
Coca-Cola Co/The					0.38%, 06/01/2021	EUR	250		276
1.10%, 09/02/2036	EUR	350		364	Aruba Investments Inc
Coca-Cola Icecek AS					8.75%, 02/15/2023^(f)	$	1,000		1,020
4.75%, 10/01/2018^(f)	$	2,050		2,118
					Blue Cube Spinco Inc
Constellation Brands Inc					9.75%, 10/15/2023		565		664
3.88%, 11/15/2019		520		544	Braskem Finance Ltd
4.25%, 05/01/2023		2,690		2,845	6.45%, 02/03/2024		900		952
Corp Lindley SA					CF Industries Inc
6.75%, 11/23/2021^(f)		307		350
					4.95%, 06/01/2043		280		232
6.75%, 11/23/2021		379		432


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Chemicals (continued)					Commercial Mortgage Backed Securities (continued)
CF Industries Inc (continued)					COMM 2014-CCRE16 Mortgage Trust
5.15%, 03/15/2034	$	1,885	$	1,693	4.05%, 04/10/2047	$	600	$	659
Consolidated Energy Finance SA					COMM 2014-CCRE17 Mortgage Trust
6.75%, 10/15/2019^(f)		2,684		2,684	4.74%, 05/10/2047^(e)		1,850		1,969
Cornerstone Chemical Co					COMM 2014-LC17 Mortgage Trust
9.38%, 03/15/2018^(f)		835		829	4.49%, 10/10/2047		5,000		5,437
Dow Chemical Co/The					COMM 2014-UBS5 Mortgage Trust
4.38%, 11/15/2042		515		518	1.08%, 09/10/2047^(e),(i)		70,146		3,621
Equate Petrochemical BV					COMM 2015-CCRE22 Mortgage Trust
3.00%, 03/03/2022^(e),(f),(h)		450		443	4.13%, 03/10/2048^(e)		1,611		1,599
Monsanto Co					COMM 2015-PC1 Mortgage Trust
3.95%, 04/15/2045		2,780		2,619	4.29%, 07/10/2050^(e)		2,000		2,142
4.40%, 07/15/2044		802		795	Commercial Mortgage Pass Through
Solvay Finance America LLC					Certificates
3.40%, 12/03/2020^(f)		3,100		3,227	4.77%, 10/15/2045^(e),(f)		2,715		2,776
4.45%, 12/03/2025^(f)		1,675		1,797	Credit Suisse Commercial Mortgage Trust
UPL Corp Ltd					Series 2006-C5
3.25%, 10/13/2021^(f)		625		624	0.61%, 12/15/2039^(e),(i)		3,059		—
Versum Materials Inc					Credit Suisse Commercial Mortgage Trust
5.50%, 09/30/2024^(f)		145		148	Series 2007-C3
Westlake Chemical Corp					5.69%, 06/15/2039^(e)		1,311		1,322
4.63%, 02/15/2021^(f)		1,395		1,458	Credit Suisse First Boston Mortgage Securities
		$		24,679	Corp
Commercial Mortgage Backed Securities - 5.75%					4.77%, 07/15/2037		5		5
Banc of America Commercial Mortgage Trust					CSMC Series 2009-RR1
2007-3					5.38%, 02/15/2040^(f)		3,165		3,161
0.81%, 06/10/2049^(e),(f)		1,000		992	CSMC Series 2009-RR3
Banc of America Commercial Mortgage Trust					5.34%, 12/15/2043^(e),(f)		1,545		1,544
2008-1					DBJPM 16-C3 Mortgage Trust
6.27%, 02/10/2051^(e)		3,255		3,405	2.89%, 09/10/2049^(e)		2,000		2,026
Banc of America Commercial Mortgage Trust					DBUBS 2011-LC2 Mortgage Trust
2015-UBS7					4.54%, 07/10/2044^(f)		5,000		5,493
3.71%, 09/15/2048		2,000		2,166	5.54%, 07/10/2044^(e),(f)		5,000		5,235
Banc of America Commercial Mortgage Trust					Freddie Mac Multifamily Structured Pass
2016-UBS10					Through Certificates
4.91%, 07/15/2049^(e)		3,000		3,099	3.15%, 11/25/2025^(e)		3,000		3,204
BCRR Trust 2009-1					GE Commercial Mortgage Corp Series 2007-
5.86%, 07/17/2040^(f)		1,945		1,955	C1 Trust
CD 2007-CD4 Commercial Mortgage Trust					5.61%, 12/10/2049^(e)		6,000		5,940
5.37%, 12/11/2049		5,490		5,528	GS Mortgage Securities Trust 2011-GC5
CFCRE Commercial Mortgage Trust 2011-					1.37%, 08/10/2044^(e),(f),(i)		95,602		4,952
C2					GS Mortgage Securities Trust 2012-GCJ7
5.74%, 12/15/2047^(e),(f)		800		886	2.42%, 05/10/2045^(e),(i)		16,967		1,318
Citigroup Commercial Mortgage Trust 2012-					GS Mortgage Securities Trust 2013-GC16
GC8					1.43%, 11/10/2046^(e),(i)		29,778		1,636
4.29%, 09/10/2045^(f)		800		862	5.32%, 11/10/2046^(e)		800		870
Citigroup Commercial Mortgage Trust 2015-					GS Mortgage Securities Trust 2013-GCJ12
GC27					3.78%, 06/10/2046^(e)		555		582
3.57%, 02/10/2048^(e)		6,500		6,718	GS Mortgage Securities Trust 2014-GC26
Citigroup Commercial Mortgage Trust 2015-					1.09%, 11/10/2047^(e),(i)		49,875		3,138
GC29					GS Mortgage Securities Trust 2015-GC34
3.19%, 04/10/2048^(e)		3,000		3,117	3.51%, 10/10/2048^(e)		1,482		1,572
4.15%, 04/10/2048^(e)		2,000		1,975	JP Morgan Chase Commercial Mortgage
Citigroup Commercial Mortgage Trust 2015-					Securities Corp
GC35					1.83%, 12/15/2047^(e),(i)		20,822		1,356
3.82%, 11/10/2048		1,000		1,085	3.35%, 12/15/2047^(e),(f)		2,000		2,066
Citigroup Commercial Mortgage Trust 2016-					JP Morgan Chase Commercial Mortgage
GC37					Securities Trust 2005-CIBC12
3.58%, 04/10/2049^(e)		1,750		1,807	5.38%, 09/12/2037^(e)		245		62
COMM 2010-RR1					JP Morgan Chase Commercial Mortgage
5.54%, 12/11/2049^(e),(f)		900		911	Securities Trust 2006-CIBC17
COMM 2012-CCRE5 Mortgage Trust					5.46%, 12/12/2043		5,000		4,996
3.22%, 12/10/2045^(f)		2,000		2,068	JP Morgan Chase Commercial Mortgage
COMM 2013-CCRE11 Mortgage Trust					Securities Trust 2006-LDP9
1.16%, 10/10/2046^(e),(i)		58,904		3,266	5.34%, 05/15/2047		43		43
4.72%, 10/10/2046		5,000		5,576	JP Morgan Chase Commercial Mortgage
COMM 2013-CCRE6 Mortgage Trust					Securities Trust 2007-C1
4.17%, 03/10/2046^(e),(f)		500		441	5.98%, 02/15/2051^(e)		10,000		10,085
COMM 2013-CCRE8 Mortgage Trust					JP Morgan Chase Commercial Mortgage
3.96%, 06/10/2046^(e),(f)		3,000		3,161	Securities Trust 2010-C1
COMM 2013-LC6 Mortgage Trust					5.95%, 06/15/2043^(f)		2,585		2,783
4.28%, 01/10/2046^(e),(f)		1,470		1,372


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



		Principal					Principal
	BONDS (continued)	Amount (000's)		Value (000's)		BONDS (continued)	Amount (000's)		Value (000's)
	Commercial Mortgage Backed Securities (continued)					Commercial Mortgage Backed Securities (continued)
	JP Morgan Chase Commercial Mortgage					Morgan Stanley Bank of America Merrill
	Securities Trust 2011-C5					Lynch Trust 2016-C30
	5.39%, 08/15/2046^(e),(f)	$	800	$	871	3.17%, 09/15/2049^(e)	$	1,571	$	1,583
	JP Morgan Chase Commercial Mortgage					Morgan Stanley Capital I Trust 2007-IQ13
	Securities Trust 2013-C16					5.36%, 03/15/2044^(e)		514		516
	1.13%, 12/15/2046^(e),(i)		11,636		578	Morgan Stanley Capital I Trust 2016-UBS9
	JP Morgan Chase Commercial Mortgage					3.59%, 03/15/2049^(e)		1,500		1,604
	Securities Trust 2016-JP3					MSBAM Commercial Mortgage Securities
	3.14%, 08/15/2049^(e)		3,000		3,017	Trust 2012-CKSV
	JPMBB Commercial Mortgage Securities					1.12%, 10/15/2030^(e),(f),(i)		22,903		1,249
	Trust 2013-C15					UBS Commercial Mortgage Trust 2012-C1
	1.35%, 11/15/2045^(e),(i)		39,605		2,037	3.40%, 05/10/2045^(e)		496		525
	JPMBB Commercial Mortgage Securities					UBS-Barclays Commercial Mortgage Trust
	Trust 2014-C18					2012-C3
	4.81%, 02/15/2047^(e)		1,000		1,112	3.09%, 08/10/2049^(e)		1,210		1,264
	4.81%, 02/15/2047^(e)		2,700		2,795	4.96%, 08/10/2049^(e),(f)		1,500		1,607
	JPMBB Commercial Mortgage Securities					UBS-Barclays Commercial Mortgage Trust
	Trust 2014-C19					2012-C4
	1.20%, 04/15/2047^(e),(i)		46,101		1,770	1.77%, 12/10/2045^(e),(f),(i)		19,464		1,462
	JPMBB Commercial Mortgage Securities					3.32%, 12/10/2045^(e),(f)		2,300		2,378
	Trust 2014-C24					UBS-Barclays Commercial Mortgage Trust
	1.07%, 11/15/2047^(e),(i)		9,408		493	2013-C5
	3.93%, 11/15/2047^(e),(f)		1,000		776	3.18%, 03/10/2046^(e)		1,580		1,651
	4.43%, 11/15/2047^(e)		4,350		4,431	4.09%, 03/10/2046^(e),(f)		1,090		1,004
	JPMBB Commercial Mortgage Securities					Wachovia Bank Commercial Mortgage Trust
	Trust 2015-C28					Series 2007-C30
	3.99%, 10/15/2048^(e)		7,000		6,883	0.73%, 12/15/2043^(e),(f)		1,350		1,329
	JPMBB Commercial Mortgage Securities					Wachovia Bank Commercial Mortgage Trust
	Trust 2015-C31					Series 2007-C34
	1.02%, 08/15/2048^(e),(i)		42,883		2,611	5.68%, 05/15/2046^(e)		236		239
	LB-UBS Commercial Mortgage Trust 2005-					Wells Fargo Commercial Mortgage Trust
	C3					2015-NXS3
	0.82%, 07/15/2040^(e),(f),(i)		2,563		57	4.49%, 09/15/2057^(e)		1,400		1,445
	LB-UBS Commercial Mortgage Trust 2007-					Wells Fargo Commercial Mortgage Trust
	C1					2016-C36
	0.30%, 02/15/2040^(e),(i)		6,859		4	3.07%, 11/15/2059^(e),(h)		750		766
	LB-UBS Commercial Mortgage Trust 2007-					WFRBS Commercial Mortgage Trust 2012-
	C2					C8
	5.43%, 02/15/2040		977		983	3.00%, 08/15/2045		2,500		2,621
	LB-UBS Commercial Mortgage Trust 2007-					WFRBS Commercial Mortgage Trust 2013-
	C6					C12
	6.11%, 07/15/2040		7,850		8,053	1.38%, 03/15/2048^(e),(f),(i)		56,031		3,240
	ML-CFC Commercial Mortgage Trust 2006-					WFRBS Commercial Mortgage Trust 2014-
	4					C22
	5.20%, 12/12/2049		54		54	4.07%, 09/15/2057		5,000		5,408
	Morgan Stanley Bank of America Merrill					4.37%, 09/15/2057^(e)		2,000		2,126
	Lynch Trust 2013-C11					WFRBS Commercial Mortgage Trust 2014-
	0.55%, 08/15/2046^(e),(i)		26,400		464	C23
	Morgan Stanley Bank of America Merrill					0.69%, 10/15/2057^(e),(i)		54,034		1,973
	Lynch Trust 2013-C9							$		230,689
	3.46%, 05/15/2046		1,781		1,847	Commercial Services - 0.04%
	Morgan Stanley Bank of America Merrill					Ahern Rentals Inc
	Lynch Trust 2014-C15					7.38%, 05/15/2023^(f)		760		498
	1.17%, 04/15/2047^(e),(i)		54,681		3,063	DP World Ltd
	4.05%, 04/15/2047		3,000		3,292	6.85%, 07/02/2037		190		216
	Morgan Stanley Bank of America Merrill					Moody's Corp
	Lynch Trust 2014-C16					1.75%, 03/09/2027	EUR	100		115
	1.20%, 06/15/2047^(e),(i)		25,297		1,459	TMS International Corp
	4.76%, 06/15/2047^(e)		4,250		4,486	7.63%, 10/15/2021^(f)	$	1,135		936
	Morgan Stanley Bank of America Merrill							$		1,765
	Lynch Trust 2014-C18					Computers - 0.88%
	4.44%, 10/15/2047^(e)		3,250		3,531
						Apple Inc
	Morgan Stanley Bank of America Merrill					1.01%, 05/03/2018^(e)		5,473		5,486
	Lynch Trust 2015-C20					1.09%, 05/06/2019^(e)		2,700		2,707
	3.61%, 02/15/2048^(e)		2,000		2,078
						2.85%, 02/23/2023		1,845		1,914
	4.16%, 02/15/2048^(e)		1,975		2,072
						3.45%, 02/09/2045		2,035		1,880
	Morgan Stanley Bank of America Merrill					4.65%, 02/23/2046		3,445		3,797
	Lynch Trust 2015-C25					Compiler Finance Sub Inc
	3.64%, 10/15/2048		2,500		2,674	7.00%, 05/01/2021^(f)		515		239
	Morgan Stanley Bank of America Merrill					Dell Inc
	Lynch Trust 2015-C26					5.65%, 04/15/2018		365		377
	3.89%, 10/15/2048		3,000		3,226


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Computers (continued)					Diversified Financial Services (continued)
Diamond 1 Finance Corp / Diamond 2 Finance					Doric Nimrod Air Finance Alpha Ltd 2012-1
Corp					Class B Pass Through Trust
3.48%, 06/01/2019^(f)	$	950	$	975	6.50%, 05/30/2021^(f)	$	989	$	1,029
4.42%, 06/15/2021^(f)		3,230		3,378	FBM Finance Inc
5.88%, 06/15/2021^(f)		610		643	8.25%, 08/15/2021^(f)		247		258
6.02%, 06/15/2026^(f)		2,055		2,240	Fly Leasing Ltd
7.13%, 06/15/2024^(f)		1,935		2,120	6.38%, 10/15/2021		2,050		2,096
Hewlett Packard Enterprise Co					GE Capital International Funding Co
2.85%, 10/05/2018^(f)		1,390		1,421	Unlimited Co
4.90%, 10/15/2025^(f)		825		881	2.34%, 11/15/2020		13,581		13,852
6.20%, 10/15/2035^(f)		1,690		1,747	4.42%, 11/15/2035		1,714		1,870
International Business Machines Corp					ILFC E-Capital Trust II
1.19%, 02/12/2019^(e)		5,550		5,577	4.25%, 12/21/2065^(e),(f)		155		126
		$		35,382	Intercontinental Exchange Inc
Consumer Products - 0.03%					2.75%, 12/01/2020		3,620		3,728
Spectrum Brands Inc					International Lease Finance Corp
5.75%, 07/15/2025		1,135		1,229	6.25%, 05/15/2019		2,405		2,600
					Mastercard Inc
Credit Card Asset Backed Securities - 0.96%					1.10%, 12/01/2022	EUR	250		284
Barclays Dryrock Issuance Trust					National Rural Utilities Cooperative Finance
0.89%, 12/16/2019^(e)		6,151		6,154	Corp
0.92%, 09/15/2020^(e)		10,000		10,016	1.07%, 05/12/2017^(e)	$	4,200		4,205
1.48%, 09/15/2020		2,250		2,256	4.75%, 04/30/2043^(e)		855		873
Cabela's Credit Card Master Note Trust					Navient Corp
0.88%, 03/16/2020^(e)		5,832		5,832	5.00%, 10/26/2020		135		133
Chase Issuance Trust					5.50%, 01/15/2019		215		219
0.78%, 04/15/2019^(e)		7,183		7,180	5.88%, 03/25/2021		765		766
0.99%, 04/15/2019^(e)		2,150		2,149	6.13%, 03/25/2024		1,025		938
Synchrony Credit Card Master Note Trust					6.63%, 07/26/2021		600		605
2014-1					7.25%, 09/25/2023		1,065		1,061
1.61%, 11/15/2020		4,175		4,191	OneMain Financial Holdings LLC
World Financial Network Credit Card Master					7.25%, 12/15/2021^(f)		965		999
Trust					Peachtree Corners Funding Trust
1.26%, 03/15/2021		785		785	3.98%, 02/15/2025^(f)		2,685		2,695
		$		38,563	Springleaf Finance Corp
Distribution & Wholesale - 0.10%					5.25%, 12/15/2019		2,000		2,008
American Builders & Contractors Supply Co					6.90%, 12/15/2017		135		141
Inc					SUAM Finance BV
5.75%, 12/15/2023^(f)		570		594	4.88%, 04/17/2024^(f)		625		659
Global Partners LP / GLP Finance Corp					Visa Inc
7.00%, 06/15/2023		975		931	2.20%, 12/14/2020		1,155		1,178
HD Supply Inc					3.15%, 12/14/2025		8,420		8,783
5.25%, 12/15/2021^(f)		645		685			$		66,556
5.75%, 04/15/2024^(f)		340		357	Electric - 3.05%
Rexel SA					Abu Dhabi National Energy Co PJSC
5.25%, 06/15/2020^(f)		415		429	4.38%, 06/22/2026^(f)		675		706
WW Grainger Inc					Adani Transmission Ltd
4.60%, 06/15/2045		980		1,116	4.00%, 08/03/2026^(f)		750		747
		$		4,112	Alabama Power Co
Diversified Financial Services - 1.66%					3.85%, 12/01/2042		850		861
AerCap Ireland Capital Ltd / AerCap Global					CMS Energy Corp
Aviation Trust					3.00%, 05/15/2026		1,885		1,901
4.63%, 10/30/2020		755		795	4.70%, 03/31/2043		910		1,011
Aircastle Ltd					4.88%, 03/01/2044		1,835		2,120
5.00%, 04/01/2023		415		430	Commonwealth Edison Co
5.13%, 03/15/2021		2,320		2,462	3.70%, 03/01/2045		690		696
5.50%, 02/15/2022		530		568	3.80%, 10/01/2042		2,170		2,217
6.75%, 04/15/2017		380		388	4.35%, 11/15/2045		1,660		1,832
Ally Financial Inc					Consolidated Edison Co of New York Inc
3.25%, 11/05/2018		830		830	4.50%, 12/01/2045		2,900		3,236
4.25%, 04/15/2021		70		71	4.63%, 12/01/2054		1,940		2,171
4.75%, 09/10/2018		220		226	Dominion Resources Inc/VA
5.75%, 11/20/2025		1,410		1,443	3.90%, 10/01/2025		1,670		1,780
Blackstone Holdings Finance Co LLC					DTE Energy Co
2.00%, 05/19/2025	EUR	250		292	6.38%, 04/15/2033		4,795		6,102
BOC Aviation Ltd					Duke Energy Corp
2.38%, 09/15/2021^(f)	$	2,000		1,972	2.65%, 09/01/2026		3,540		3,445
CIT Group Inc					3.75%, 04/15/2024		1,500		1,592
3.88%, 02/19/2019		3,795		3,853	3.75%, 09/01/2046		3,095		2,929
Credit Acceptance Corp					Dynegy Inc
6.13%, 02/15/2021		1,185		1,191	6.75%, 11/01/2019		715		724
7.38%, 03/15/2023		900		929	7.38%, 11/01/2022		1,385		1,336
					8.00%, 01/15/2025^(f)		220		212


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Electric (continued)					Electric (continued)
Edison International					Southern California Edison Co
3.75%, 09/15/2017	$	1,420	$	1,449	3.60%, 02/01/2045	$	2,805	$	2,837
Electricite de France SA					4.05%, 03/15/2042		1,610		1,733
2.15%, 01/22/2019^(f)		70		71	Southern Co/The
2.35%, 10/13/2020^(f)		3,960		4,024	2.95%, 07/01/2023		2,035		2,092
3.63%, 10/13/2025^(f)		3,205		3,313	4.40%, 07/01/2046		2,430		2,566
4.25%, 12/29/2049^(d),(e)	EUR	500		565	Southern Power Co
4.63%, 09/11/2024		250		355	1.85%, 06/20/2026	EUR	550		626
4.95%, 10/13/2045^(f)	$	1,515		1,614	Virginia Electric & Power Co
5.50%, 10/17/2041	GBP	100		161	4.45%, 02/15/2044	$	1,560		1,742
5.63%, 12/29/2049^(d),(e),(f)	$	4,365		4,321	4.65%, 08/15/2043		1,620		1,864
6.00%, 12/29/2049^(d),(e)	GBP	100		122	Western Power Distribution West Midlands
6.25%, 05/30/2028		50		82	PLC
Elwood Energy LLC					5.75%, 04/16/2032	GBP	100		170
8.16%, 07/05/2026	$	630		705	Wisconsin Electric Power Co
Emera US Finance LP					4.30%, 12/15/2045	$	1,495		1,647
2.70%, 06/15/2021^(f)		2,540		2,585	Xcel Energy Inc
Enel Finance International NV					3.30%, 06/01/2025		2,535		2,640
1.38%, 06/01/2026	EUR	200		225			$		122,593
5.75%, 09/14/2040	GBP	50		81	Electronics - 0.08%
Eskom Holdings SOC Ltd					Fortive Corp
7.13%, 02/11/2025^(f)	$	525		543	2.35%, 06/15/2021^(f)		215		216
Exelon Corp					Honeywell International Inc
2.85%, 06/15/2020		4,560		4,693	2.25%, 02/22/2028	EUR	325		402
4.45%, 04/15/2046		490		510	Keysight Technologies Inc
5.10%, 06/15/2045		1,480		1,674	3.30%, 10/30/2019	$	1,470		1,514
Fortis Inc/Canada					Sanmina Corp
2.10%, 10/04/2021^(f)		2,470		2,450	4.38%, 06/01/2019^(f)		255		266
3.06%, 10/04/2026^(f)		6,055		5,958	Tyco Electronics Group SA
Iberdrola International BV					1.10%, 03/01/2023	EUR	500		559
3.50%, 02/01/2021	EUR	100		125	2.38%, 12/17/2018	$	150		152
Indiantown Cogeneration LP					7.13%, 10/01/2037		105		144
9.77%, 12/15/2020	$	586		633			$		3,253
Interstate Power & Light Co					Engineering & Construction - 0.07%
3.70%, 09/15/2046		1,125		1,103	Mexico City Airport Trust
ITC Holdings Corp					5.50%, 10/31/2046^(f)		200		195
3.25%, 06/30/2026		1,065		1,074	SBA Tower Trust
Kentucky Utilities Co					2.90%, 10/15/2044^(f)		2,700		2,746
3.30%, 10/01/2025		3,105		3,293			$		2,941
Listrindo Capital BV					Entertainment - 0.33%
4.95%, 09/14/2026^(f)		825		833
					AMC Entertainment Holdings Inc
Louisville Gas & Electric Co					5.88%, 11/15/2026^(f),(h)		510		512
3.30%, 10/01/2025		1,545		1,632	Carmike Cinemas Inc
MidAmerican Energy Co					6.00%, 06/15/2023^(f)		720		769
4.25%, 05/01/2046		1,030		1,140	CCM Merger Inc
Mirant Mid-Atlantic Series B Pass Through					9.13%, 05/01/2019^(f)		2,640		2,759
Trust					Cinemark USA Inc
9.13%, 06/30/2017		199		163	4.88%, 06/01/2023		1,755		1,757
Mirant Mid-Atlantic Series C Pass Through					Eldorado Resorts Inc
Trust					7.00%, 08/01/2023		1,175		1,249
10.06%, 12/30/2028		1,203		951	GLP Capital LP / GLP Financing II Inc
NRG Energy Inc					4.38%, 04/15/2021		425		447
6.25%, 05/01/2024		835		810	5.38%, 04/15/2026		995		1,057
7.25%, 05/15/2026^(f)		620		610
					LG FinanceCo Corp
Oncor Electric Delivery Co LLC					5.88%, 11/01/2024^(f)		890		898
2.15%, 06/01/2019		4,630		4,684	Lions Gate Entertainment Corp
5.25%, 09/30/2040		950		1,164	5.25%, 08/01/2018		265		278
Pacific Gas & Electric Co					National CineMedia LLC
4.45%, 04/15/2042		30		33	5.75%, 08/15/2026^(f)		680		700
PacifiCorp					Pinnacle Entertainment Inc
2.95%, 06/01/2023		2,466		2,564	5.63%, 05/01/2024^(f)		865		872
3.85%, 06/15/2021		1,137		1,235	WMG Acquisition Corp
PPL Electric Utilities Corp					4.88%, 11/01/2024^(f)		305		304
3.00%, 09/15/2021		465		491	5.00%, 08/01/2023^(f)		575		582
4.75%, 07/15/2043		1,375		1,599	6.75%, 04/15/2022^(f)		825		872
PPL WEM Ltd / Western Power Distribution							$		13,056
Ltd
5.38%, 05/01/2021^(f)		5,140		5,670	Environmental Control - 0.04%
					Clean Harbors Inc
Public Service Electric & Gas Co					5.13%, 06/01/2021		320		328
3.65%, 09/01/2042		365		368	Republic Services Inc
Puget Energy Inc					3.80%, 05/15/2018		1,215		1,258
6.00%, 09/01/2021		2,935		3,382
							$		1,586


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
	Food- 0.91	%					Healthcare - Products (continued)
	Arcor SAIC						Kinetic Concepts Inc / KCI USA Inc
	6.00%, 07/06/2023^(f)		$	865	$	917	7.88%, 02/15/2021^(f)	$	860	$	927
	BI-LO LLC / BI-LO Finance Corp						9.63%, 10/01/2021^(f)		785		759
	9.25%, 02/15/2019^(f)			1,110		963	Mallinckrodt International Finance SA /
	BRF GmbH						Mallinckrodt CB LLC
	4.35%, 09/29/2026^(f)			1,025		991	4.88%, 04/15/2020^(f)		330		331
	Cencosud SA						5.63%, 10/15/2023^(f)		1,810		1,701
	5.50%, 01/20/2021^(f)			350		379	Medtronic Inc
	5.50%, 01/20/2021			2,100		2,275	2.50%, 03/15/2020		2,160		2,217
	Gruma SAB de CV						3.50%, 03/15/2025		256		272
	4.88%, 12/01/2024^(f)			1,375		1,492	4.38%, 03/15/2035		3,885		4,262
	Grupo Bimbo SAB de CV						4.63%, 03/15/2045		6,330		7,162
	4.88%, 06/27/2044^(f)			925		900	St Jude Medical Inc
	Ingles Markets Inc						4.75%, 04/15/2043		2,870		3,011
	5.75%, 06/15/2023			1,305		1,351	Teleflex Inc
	JBS USA LUX SA / JBS USA Finance Inc						4.88%, 06/01/2026		515		528
	5.75%, 06/15/2025^(f)			915		897	Universal Hospital Services Inc
	7.25%, 06/01/2021^(f)			380		389	7.63%, 08/15/2020		1,530		1,469
	Kraft Heinz Foods Co						Zimmer Biomet Holdings Inc
	2.80%, 07/02/2020			6,475		6,662	2.00%, 04/01/2018		4,340		4,361
	3.00%, 06/01/2026			95		94	2.70%, 04/01/2020		10,765		10,947
	4.38%, 06/01/2046			7,325		7,429	3.15%, 04/01/2022		1,285		1,320
	5.00%, 07/15/2035			1,155		1,298	3.55%, 04/01/2025		1,910		1,943
	5.20%, 07/15/2045			980		1,099	4.25%, 08/15/2035		325		323
	Post Holdings Inc						4.45%, 08/15/2045		1,075		1,060
	5.00%, 08/15/2026^(f)			1,265		1,227			$		46,872
	7.75%, 03/15/2024^(f)			475		525	Healthcare - Services - 1.52%
	Smithfield Foods Inc						Aetna Inc
	5.25%, 08/01/2018^(f)			417		420	2.40%, 06/15/2021		4,850		4,894
	5.88%, 08/01/2021^(f)			1,425		1,485	2.75%, 11/15/2022		400		407
	TreeHouse Foods Inc						2.80%, 06/15/2023		6,020		6,100
	6.00%, 02/15/2024^(f)			965		1,036	3.20%, 06/15/2026		5,825		5,846
	Wm Wrigley Jr Co						4.25%, 06/15/2036		2,400		2,435
	2.40%, 10/21/2018^(f)			1,650		1,675	4.38%, 06/15/2046		1,385		1,405
	3.38%, 10/21/2020^(f)			2,745		2,880	Anthem Inc
				$		36,384	3.13%, 05/15/2022		865		893
	Forest Products & Paper - 0.15%						4.35%, 08/15/2020		30		32
	Domtar Corp						4.63%, 05/15/2042		1,485		1,551
	6.25%, 09/01/2042			2,155		2,237	Centene Corp
	International Paper Co						4.75%, 05/15/2022		2,175		2,208
	3.00%, 02/15/2027			1,870		1,845	4.75%, 01/15/2025^(h)		430		428
	Resolute Forest Products Inc						5.63%, 02/15/2021		470		493
	5.88%, 05/15/2023			955		809	5.75%, 06/01/2017		4,580		4,660
	Sappi Papier Holding GmbH						6.13%, 02/15/2024		655		698
	7.50%, 06/15/2032^(f)			630		595	Cigna Corp
	Tembec Industries Inc						4.00%, 02/15/2022		1,875		2,009
	9.00%, 12/15/2019^(f)			805		640	4.38%, 12/15/2020		2,530		2,735
				$		6,126	Fresenius Medical Care US Finance II Inc
	Gas- 0.21	%					4.75%, 10/15/2024^(f)		1,180		1,230
	Dominion Gas Holdings LLC						5.88%, 01/31/2022^(f)		985		1,116
	2.80%, 11/15/2020			3,645		3,755	6.50%, 09/15/2018^(f)		330		356
	Nakilat Inc						HCA Holdings Inc
	6.07%, 12/31/2033			350		420	6.25%, 02/15/2021		925		998
	NGL Energy Partners LP / NGL Energy						HCA Inc
	Finance Corp						4.50%, 02/15/2027		315		311
	6.88%, 10/15/2021			645		635	4.75%, 05/01/2023		2,685		2,796
	7.50%, 11/01/2023^(f)			895		897	5.00%, 03/15/2024		1,045		1,088
	Talent Yield Investments Ltd						5.25%, 04/15/2025		1,500		1,571
	4.50%, 04/25/2022^(f)			1,500		1,629	5.88%, 03/15/2022		580		638
	Washington Gas Light Co						Humana Inc
	3.80%, 09/15/2046			1,080		1,079	4.63%, 12/01/2042		214		218
				$		8,415	4.95%, 10/01/2044		198		214
	Healthcare - Products - 1.17%						IASIS Healthcare LLC / IASIS Capital Corp
	ConvaTec Finance International SA						8.38%, 05/15/2019		1,290		1,229
	8.25%, PIK 9.00%, 01/15/2019^(f),(g)			1,850		1,850	Molina Healthcare Inc
	ConvaTec Healthcare E SA						5.38%, 11/15/2022		1,000		1,041
	10.50%, 12/15/2018 ^(f)			400		404	MPH Acquisition Holdings LLC
	DJO Finco Inc / DJO Finance LLC / DJO						7.13%, 06/01/2024^(f)		1,730		1,851
	Finance Corp						Tenet Healthcare Corp
	8.13%, 06/15/2021^(f)			1,360		1,248	6.00%, 10/01/2020		155		163
	Hill-Rom Holdings Inc						UnitedHealth Group Inc
	5.75%, 09/01/2023^(e),(f)			740		777	1.90%, 07/16/2018		2,425		2,446
							4.63%, 07/15/2035		4,780		5,452


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Healthcare - Services (continued)					Insurance (continued)
UnitedHealth Group Inc	(continued)				Prudential Financial Inc
4.75%, 07/15/2045	$	135	$	156	5.38%, 05/15/2045^(e)	$	3,175	$	3,300
WellCare Health Plans Inc					TIAA Asset Management Finance Co LLC
5.75%, 11/15/2020		1,180		1,215	2.95%, 11/01/2019^(f)		6,675		6,865
		$		60,883	Travelers Cos Inc/The
Holding Companies - Diversified - 0.03%					3.75%, 05/15/2046		2,465		2,513
KOC Holding AS					Voya Financial Inc
5.25%, 03/15/2023^(f)		1,050		1,073	5.65%, 05/15/2053^(e)		4,890		4,866
					XLIT Ltd
Home Builders - 0.25%					4.45%, 03/31/2025		8,760		8,902
Beazer Homes USA Inc					5.50%, 03/31/2045		5,270		5,094
8.75%, 03/15/2022^(f)		875		930			$		67,222
CalAtlantic Group Inc					Internet - 0.19%
5.88%, 11/15/2024		520		555	Alibaba Group Holding Ltd
KB Home					3.13%, 11/28/2021		3,200		3,306
4.75%, 05/15/2019		390		399	Netflix Inc
Lennar Corp					4.38%, 11/15/2026^(f)		995		979
4.13%, 12/01/2018		1,725		1,772	5.38%, 02/01/2021		200		217
4.50%, 11/15/2019		675		711	Tencent Holdings Ltd
4.75%, 11/15/2022^(e)		1,265		1,316	3.80%, 02/11/2025^(f)		650		687
4.88%, 12/15/2023		340		347	Zayo Group LLC / Zayo Capital Inc
TRI Pointe Group Inc					6.00%, 04/01/2023		2,115		2,226
4.88%, 07/01/2021		150		154			$		7,415
WCI Communities Inc					Investment Companies - 0.01%
6.88%, 08/15/2021		2,105		2,221	GrupoSura Finance SA
Woodside Homes Co LLC / Woodside Homes					5.50%, 04/29/2026^(f)		475		503
Finance Inc
6.75%, 12/15/2021^(f)		1,725		1,673	Iron & Steel - 0.37%
		$		10,078	AK Steel Corp
Home Equity Asset Backed Securities - 0.03%					7.50%, 07/15/2023		475		512
First NLC Trust 2005-1					7.63%, 05/15/2020		1,170		1,176
1.02%, 05/25/2035^(e)		288		227	ArcelorMittal
JP Morgan Mortgage Acquisition Trust 2006-					6.50%, 03/01/2021^(e)		1,940		2,129
CW2					8.00%, 10/15/2039^(e)		1,905		2,048
0.68%, 08/25/2036^(e)		656		633	BlueScope Steel Finance Ltd / BlueScope
New Century Home Equity Loan Trust 2005-					Steel Finance USA LLC
1					6.50%, 05/15/2021^(f)		415		438
1.11%, 03/25/2035^(e)		85		85	Commercial Metals Co
Saxon Asset Securities Trust 2004-1					4.88%, 05/15/2023		2,785		2,757
2.23%, 03/25/2035^(e)		282		127	7.35%, 08/15/2018		740		795
Specialty Underwriting & Residential Finance					Signode Industrial Group Lux SA/Signode
Trust Series 2004-BC1					Industrial Group US Inc
1.30%, 02/25/2035^(e)		303		283	6.38%, 05/01/2022^(f)		2,675		2,702
		$		1,355	Vale Overseas Ltd
Housewares - 0.04%					5.88%, 06/10/2021		1,865		1,989
Newell Brands Inc					6.25%, 08/10/2026		375		402
3.15%, 04/01/2021		665		693			$		14,948
3.85%, 04/01/2023		900		955	Leisure Products & Services - 0.03%
		$		1,648	NCL Corp Ltd
Insurance - 1.67%					4.63%, 11/15/2020^(f)		1,325		1,342
Aegon NV
4.00%, 04/25/2044^(e)	EUR	250		267	Lodging - 0.13%
American International Group Inc					Boyd Gaming Corp
1.50%, 06/08/2023		300		338	6.88%, 05/15/2023		515		551
3.30%, 03/01/2021	$	3,360		3,513	MGM Resorts International
3.38%, 08/15/2020		4,605		4,839	6.00%, 03/15/2023		705		763
3.88%, 01/15/2035		4,400		4,274	6.63%, 12/15/2021		545		609
5.00%, 04/26/2023	GBP	150		208	8.63%, 02/01/2019		190		213
Chubb INA Holdings Inc					Wyndham Worldwide Corp
2.30%, 11/03/2020	$	6,575		6,709	2.50%, 03/01/2018		2,920		2,947
3.35%, 05/03/2026		5,280		5,550			$		5,083
CNO Financial Group Inc					Machinery - Construction & Mining - 0.01%
4.50%, 05/30/2020		350		359	Vander Intermediate Holding II Corp
Liberty Mutual Group Inc					9.75%, PIK 10.50%, 02/01/2019 ^(f),(g)		1,046		549
7.00%, 03/07/2067^(e),(f)		2,760		2,401
Markel Corp					Machinery - Diversified - 0.03%
5.00%, 04/05/2046		3,655		3,871	Cloud Crane LLC
Metropolitan Life Global Funding I					10.13%, 08/01/2024 ^(f)		890		928
3.50%, 09/30/2026	GBP	100		133	CNH Industrial Capital LLC
Pricoa Global Funding I					3.88%, 07/16/2018		80		81
2.20%, 05/16/2019^(f)	$	3,170		3,220	4.88%, 04/01/2021		330		342
							$		1,351


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



			Principal						Principal
	BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
	Media- 2.50	%					Media (continued)
	21st Century Fox America Inc						Time Warner Inc (continued)
	4.75%, 09/15/2044		$	1,370	$	1,455	6.25%, 03/29/2041	$	2,456	$	3,003
	5.40%, 10/01/2043			2,205		2,531	Unitymedia GmbH
	6.15%, 02/15/2041			2,535		3,147	6.13%, 01/15/2025^(f)		895		933
	Altice Financing SA						Unitymedia Hessen GmbH & Co KG /
	6.50%, 01/15/2022^(f)			240		251	Unitymedia NRW GmbH
	6.63%, 02/15/2023^(f)			870		896	5.50%, 01/15/2023^(f)		1,275		1,321
	Altice Finco SA						Univision Communications Inc
	7.63%, 02/15/2025^(f)			905		896	8.50%, 05/15/2021^(f)		543		560
	8.13%, 01/15/2024^(f)			520		533	UPCB Finance IV Ltd
	Altice Luxembourg SA						5.38%, 01/15/2025^(f)		602		611
	7.75%, 05/15/2022^(f)			1,060		1,107	Viacom Inc
	Altice US Finance I Corp						4.85%, 12/15/2034		3,470		3,528
	5.50%, 05/15/2026^(f)			400		408	5.85%, 09/01/2043		535		600
	CBS Corp						Virgin Media Finance PLC
	5.75%, 04/15/2020			810		908	5.75%, 01/15/2025^(f)		600		594
	CCO Holdings LLC / CCO Holdings Capital						6.00%, 10/15/2024^(f)		405		411
	Corp						Virgin Media Secured Finance PLC
	5.13%, 05/01/2023^(f)			4,820		4,977	5.25%, 01/15/2026^(f)		380		376
	5.75%, 02/15/2026^(f)			180		188	VTR Finance BV
	Charter Communications Operating LLC /						6.88%, 01/15/2024^(f)		355		371
	Charter Communications Operating Capital						Walt Disney Co/The
	4.46%, 07/23/2022^(f)			434		462	1.85%, 07/30/2026		1,245		1,165
	4.91%, 07/23/2025^(f)			4,400		4,746	2.30%, 02/12/2021		750		768
	6.38%, 10/23/2035^(f)			2,595		2,991	WideOpenWest Finance LLC /
	6.48%, 10/23/2045^(f)			3,210		3,762	WideOpenWest Capital Corp
	6.83%, 10/23/2055^(f)			2,395		2,856	13.38%, 10/15/2019		427		457
	Comcast Corp						10.25%, 07/15/2019 ^(c)		1,395		1,465
	2.35%, 01/15/2027			2,120		2,048	Ziggo Bond Finance BV
	2.75%, 03/01/2023			4,180		4,295	6.00%, 01/15/2027^(f)		925		908
	3.15%, 03/01/2026			3,310		3,431	Ziggo Secured Finance BV
	3.38%, 02/15/2025			4,600		4,834	5.50%, 01/15/2027^(f)		1,105		1,091
	4.20%, 08/15/2034			510		547			$		100,457
	4.60%, 08/15/2045			325		361	Metal Fabrication & Hardware - 0.04%
	5.50%, 11/23/2029		GBP	125		205	Wise Metals Intermediate Holdings LLC/Wise
	6.40%, 03/01/2040		$	1,975		2,697	Holdings Finance Corp
	CSC Holdings LLC						9.75%, PIK 10.50%, 06/15/2019 ^(f),(g)		1,531		1,482
	5.50%, 04/15/2027^(f)			400		406
	6.63%, 10/15/2025^(f)			445		482	Mining - 0.53%
	8.63%, 02/15/2019			185		205	Alcoa Nederland Holding BV
	10.13%, 01/15/2023 ^(f)			1,250		1,409	6.75%, 09/30/2024^(f)		485		502
	DISH DBS Corp						7.00%, 09/30/2026^(f)		750		772
	4.25%, 04/01/2018			710		727	Aleris International Inc
	5.88%, 07/15/2022			1,890		1,951	9.50%, 04/01/2021^(f)		225		242
	5.88%, 11/15/2024			760		765	Barrick Gold Corp
	6.75%, 06/01/2021			2,280		2,450	4.10%, 05/01/2023		5,430		5,837
	7.75%, 07/01/2026			600		659	Barrick North America Finance LLC
	7.88%, 09/01/2019			1,517		1,691	4.40%, 05/30/2021		2,881		3,147
	Myriad International Holdings BV						5.75%, 05/01/2043		1,145		1,336
	5.50%, 07/21/2025^(f)			775		822	BHP Billiton Finance USA Ltd
	NBCUniversal Enterprise Inc						2.05%, 09/30/2018		70		71
	1.56%, 04/15/2018^(e),(f)			5,490		5,528	First Quantum Minerals Ltd
	NBCUniversal Media LLC						7.00%, 02/15/2021^(f)		20		19
	4.45%, 01/15/2043			1		1	7.25%, 05/15/2022^(f)		630		596
	RCN Telecom Services LLC / RCN Capital						FMG Resources August 2006 Pty Ltd
	Corp						6.88%, 04/01/2022^(f)		1,950		2,009
	8.50%, 08/15/2020^(f)			1,685		1,796	9.75%, 03/01/2022^(f)		605		702
	SFR Group SA						Freeport-McMoRan Inc
	6.00%, 05/15/2022^(f)			235		241	2.30%, 11/14/2017		1,065		1,054
	7.38%, 05/01/2026^(f)			815		823	Newmont Mining Corp
	Sky PLC						4.88%, 03/15/2042		775		802
	2.88%, 11/24/2020		GBP	100		130	Southern Copper Corp
	Time Warner Cable LLC						6.75%, 04/16/2040		400		436
	5.25%, 07/15/2042			100		136	St Barbara Ltd
	5.88%, 11/15/2040		$	1,780		1,949	8.88%, 04/15/2018^(f)		679		705
	6.75%, 07/01/2018			920		994	Taseko Mines Ltd
	8.75%, 02/14/2019			1,165		1,338	7.75%, 04/15/2019		1,072		691
	Time Warner Inc						Teck Resources Ltd
	2.10%, 06/01/2019			1,080		1,088	3.75%, 02/01/2023		1,180		1,116
	2.95%, 07/15/2026			1,015		1,001	6.25%, 07/15/2041		520		515
	3.60%, 07/15/2025			90		94	8.00%, 06/01/2021^(f)		360		393
	3.88%, 01/15/2026			1,065		1,129	8.50%, 06/01/2024^(f)		215		249
	4.05%, 12/15/2023			3,670		3,948			$		21,194


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal							Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)
Miscellaneous Manufacturers - 0.47%					Mortgage Backed Securities (continued)
Bombardier Inc					Ginnie Mae (continued)
5.50%, 09/15/2018^(f)	$	1,100	$	1,134	3.50%, 01/20/2043^(e),(i)		$	6,235	$	1,279
6.13%, 01/15/2023^(f)		415		360	4.00%, 03/16/2039^(e),(i)			4,293		534
7.50%, 03/15/2025^(f)		1,620		1,450	4.00%, 09/20/2040⁽ⁱ⁾			3,738		692
General Electric Co					4.50%, 05/16/2043^(e),(i)			3,286		596
4.50%, 03/11/2044		810		911	4.50%, 04/16/2044⁽ⁱ⁾			993		160
5.30%, 02/11/2021		6,800		7,723	4.52%, 09/16/2043^(e),(i)			12,597		1,838
Illinois Tool Works Inc					5.00%, 10/16/2022^(e),(i)			146		—
2.65%, 11/15/2026^(b),(h)		1,745		1,740	5.07%, 02/20/2045^(e),(i)			17,588		3,579
Ingersoll-Rand Global Holding Co Ltd					5.12%, 08/16/2045^(e),(i)			17,861		2,588
2.88%, 01/15/2019		1,065		1,091	5.52%, 11/20/2040^(e),(i)			4,618		898
5.75%, 06/15/2043		560		685	5.52%, 08/20/2042^(e),(i)			10,347		2,187
Siemens Financieringsmaatschappij NV					5.52%, 08/20/2043^(e),(i)			7,668		1,367
1.45%, 05/25/2018^(f)		1,133		1,138	5.57%, 11/20/2041^(e),(i)			5,116		1,109
2.75%, 09/10/2025	GBP	100		132	5.57%, 07/16/2043^(e),(i)			12,617		2,437
3.75%, 09/10/2042		100		150	5.57%, 02/20/2046^(e),(i)			9,665		2,349
Tyco International Finance SA					5.57%, 02/20/2046^(e),(i)			21,343		4,612
5.13%, 09/14/2045	$	2,110		2,420	5.57%, 06/20/2046^(e),(i)			9,053		2,280
		$		18,934	5.67%, 08/20/2042^(e),(i)			4,833		967
Mortgage Backed Securities - 3.76%					5.67%, 09/20/2044^(e),(i)			13,643		3,030
Fannie Mae REMIC Trust 2005-W2					5.67%, 11/20/2045^(e),(i)			8,183		1,769
0.73%, 05/25/2035^(e)		417		413	5.67%, 01/20/2046^(e),(i)			12,417		3,005
Fannie Mae REMICS					5.72%, 06/20/2044^(e),(i)			22,136		3,837
2.25%, 07/25/2040		196		196	5.72%, 08/16/2045^(e),(i)			17,441		3,982
3.00%, 04/25/2027⁽ⁱ⁾		4,723		449	6.07%, 04/16/2040^(e),(i)			14,393		3,386
3.50%, 09/25/2027^(e),(i)		8,015		917	6.07%, 03/20/2042^(e),(i)			12,855		2,827
3.50%, 11/25/2027^(e),(i)		2,048		216	6.07%, 03/20/2042^(e),(i)			5,550		1,494
3.50%, 05/25/2028⁽ⁱ⁾		3,276		324	6.12%, 12/20/2040^(e),(i)			7,621		1,557
3.50%, 03/25/2031^(e),(i)		5,314		533	6.12%, 04/16/2042^(e),(i)			5,097		1,154
4.00%, 04/25/2043^(e),(i)		904		144	JP Morgan Mortgage Trust 2016-2
5.47%, 07/25/2039^(e),(i)		8,878		990	2.87%, 06/25/2046^(e),(f)			8,667		8,866
5.47%, 07/25/2046^(e),(i)		9,830		2,565	JP Morgan Mortgage Trust 2016-3
5.47%, 10/25/2046^(e),(i)		7,105		1,922	3.50%, 10/25/2046^(f)			7,785		8,017
5.52%, 01/25/2044^(e),(i)		7,471		1,431	Merrill Lynch Mortgage Investors Trust Series
5.57%, 02/25/2043^(e),(i)		6,834		1,329	2005	-A8
5.57%, 03/25/2043^(e),(i)		11,436		2,683	0.88%, 08/25/2036^(e)			144		135
5.57%, 09/25/2046^(e),(i)		12,098		2,415	Sequoia Mortgage Trust 2016-3
5.57%, 09/25/2046^(e),(i)		7,889		1,635	3.50%, 11/25/2046^(e),(f)			4,275		4,405
5.57%, 09/25/2046^(e),(i)		15,016		3,025	Wells Fargo Mortgage Backed Securities
5.97%, 12/25/2021^(e),(i)		670		60	2005-AR16 Trust
5.97%, 03/25/2022^(e),(i)		509		44	3.09%, 03/25/2035^(e)			309		302
34.66%, 08/25/2035 ^(e),(i)		17		7				$		151,072
Freddie Mac REMICS					Office & Business Equipment - 0.04%
0.98%, 06/15/2023^(e)		17		17	Xerox Corp
2.00%, 02/15/2036^(e)		989		997	2.95%, 03/15/2017			555		558
3.00%, 09/15/2025^(e),(i)		4,166		214	6.75%, 02/01/2017			550		557
3.00%, 05/15/2027^(e),(i)		8,478		536	6.75%, 12/15/2039			635		657
3.00%, 10/15/2027^(e),(i)		1,281		115				$		1,772
3.00%, 02/15/2029^(e),(i)		8,640		782	Oil & Gas - 2.31%
3.50%, 02/15/2028⁽ⁱ⁾		5,601		533	Anadarko Petroleum Corp
3.50%, 01/15/2040^(e),(i)		5,399		699	3.45%, 07/15/2024			2,985		2,965
3.50%, 03/15/2041⁽ⁱ⁾		7,115		907	4.50%, 07/15/2044			5		5
4.00%, 04/15/2025^(e),(i)		5,468		319	5.55%, 03/15/2026			3,610		4,104
5.52%, 04/15/2040^(e),(i)		18,315		3,675	6.60%, 03/15/2046			2,675		3,306
6.12%, 05/15/2026^(e),(i)		4,096		553	Apache Corp
6.22%, 09/15/2034^(e),(i)		768		77	4.25%, 01/15/2044			20		20
Freddie Mac Structured Agency Credit Risk					4.75%, 04/15/2043			2,395		2,501
Debt Notes					Baytex Energy Corp
1.43%, 10/25/2027^(e)		12,011		12,029	5.13%, 06/01/2021^(f)			370		312
1.68%, 12/25/2027^(e)		544		544	BP Capital Markets PLC
1.73%, 11/25/2028^(e)		7,447		7,457	1.35%, 05/10/2019^(e)			6,585		6,590
1.78%, 03/25/2028^(e)		646		646	3.02%, 01/16/2027			2,340		2,346
1.88%, 04/25/2028^(e)		1,565		1,566	Carrizo Oil & Gas Inc
1.98%, 09/25/2024^(e)		5,485		5,506	6.25%, 04/15/2023			145		149
2.93%, 08/25/2024^(e)		6,219		6,238	7.50%, 09/15/2020			2,907		3,020
2.93%, 01/25/2025^(e)		890		894	Chaparral Energy Inc
Ginnie Mae					0.00%, 10/01/2020^(a)			550		429
1.75%, 10/16/2037		547		548	0.00%, 11/15/2022^(a)			1,456		1,128
3.00%, 03/20/2039⁽ⁱ⁾		21,668		1,306	Chesapeake Energy Corp
3.50%, 02/20/2040^(e),(i)		4,483		581	8.00%, 12/15/2022^(f)			1,356		1,375
3.50%, 02/20/2041^(e),(i)		11,988		1,788	CNOOC Finance 2013 Ltd
3.50%, 04/20/2042^(e),(i)		10,096		1,350	3.00%, 05/09/2023			850		849
3.50%, 10/20/2042^(e),(i)		15,920		2,659


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Oil & Gas (continued)					Oil & Gas (continued)
ConocoPhillips					Tengizchevroil Finance Co International Ltd
5.75%, 02/01/2019	$	500	$	541	4.00%, 08/15/2026^(f)	$	1,175	$	1,133
Continental Resources Inc/OK					Whiting Petroleum Corp
3.80%, 06/01/2024		4,463		4,106	5.00%, 03/15/2019		1,410		1,340
4.50%, 04/15/2023		1,365		1,300	5.75%, 03/15/2021		645		598
5.00%, 09/15/2022		905		887	Woodside Finance Ltd
Denbury Resources Inc					3.70%, 09/15/2026^(f)		1,860		1,854
5.50%, 05/01/2022		1,055		833	WPX Energy Inc
Devon Energy Corp					7.50%, 08/01/2020		1,250		1,317
5.00%, 06/15/2045		580		561			$		92,569
Ecopetrol SA					Oil & Gas Services - 0.08%
5.88%, 05/28/2045		495		437	Archrock Partners LP / Archrock Partners
Encana Corp					Finance Corp
5.15%, 11/15/2041		1,085		995	6.00%, 10/01/2022		395		372
EP Energy LLC / Everest Acquisition Finance					PHI Inc
Inc					5.25%, 03/15/2019		755		727
6.38%, 06/15/2023		845		575	Schlumberger Investment SA
9.38%, 05/01/2020		2,220		1,743	3.30%, 09/14/2021^(f)		1,155		1,220
Exxon Mobil Corp					Seventy Seven Operating LLC
2.22%, 03/01/2021		4,980		5,050	0.00%, 11/15/2019^(a),(b),(c)		1,385		—
4.11%, 03/01/2046		305		329	Weatherford International Ltd
Halcon Resources Corp					8.25%, 06/15/2023		870		900
8.63%, 02/01/2020^(f)		1,350		1,377			$		3,219
12.00%, 02/15/2022 ^(f)		58		62
					Other Asset Backed Securities - 1.23%
Laredo Petroleum Inc					Chase Funding Trust Series 2003-5
5.63%, 01/15/2022		60		59	1.13%, 07/25/2033^(e)		612		565
7.38%, 05/01/2022		600		618	Chase Funding Trust Series 2004-1
Marathon Petroleum Corp					0.99%, 12/25/2033^(e)		23		21
4.75%, 09/15/2044		592		524	CNH Equipment Trust 2016-A
Murphy Oil Corp					1.05%, 07/15/2019^(e)		11,445		11,468
6.88%, 08/15/2024		350		369	Countrywide Asset-Backed Certificates
Noble Energy Inc					2.14%, 01/25/2034^(e)		8		8
3.90%, 11/15/2024		1,880		1,933	Dell Equipment Finance Trust 2015-1
5.05%, 11/15/2044		1,435		1,448	1.01%, 07/24/2017^(f)		2,812		2,812
Northern Blizzard Resources Inc					Dell Equipment Finance Trust 2015-2
7.25%, 02/01/2022^(f)		715		683	1.42%, 12/22/2017^(e),(f)		7,287		7,300
Oasis Petroleum Inc					1.72%, 09/22/2020^(e),(f)		5,200		5,214
6.50%, 11/01/2021		455		452	JP Morgan Mortgage Acquisition Trust 2007-
6.88%, 03/15/2022		290		287	CH3
6.88%, 01/15/2023		1,870		1,833	0.68%, 03/25/2037^(e)		698		695
PDC Energy Inc					Kubota Credit Owner Trust 2015-1
6.13%, 09/15/2024^(f)		325		338	1.54%, 03/15/2019^(e),(f)		8,880		8,906
7.75%, 10/15/2022		565		600	Popular ABS Mortgage Pass-Through Trust
Pertamina Persero PT					2005-1
5.63%, 05/20/2043^(f)		550		552	0.80%, 05/25/2035^(e)		1,023		950
Petrobras Argentina SA					Trade MAPS 1 Ltd
7.38%, 07/21/2023^(f)		920		943	1.23%, 12/10/2018^(e),(f)		11,500		11,489
Petrobras Global Finance BV							$		49,428
4.38%, 05/20/2023		3,395		3,077	Packaging & Containers - 0.52%
Petroleos de Venezuela SA					ARD Finance SA
6.00%, 05/16/2024		2,700		1,013	7.13%, PIK 7.88%, 09/15/2023^(f),(g)		715		708
Petroleos Mexicanos					Ardagh Packaging Finance PLC / Ardagh
5.50%, 02/04/2019^(f)		875		926
					Holdings USA Inc

6.88%, 08/04/2026(f)		1,580		1,766	3.85%, 12/15/2019^(e),(f)		1,150		1,169
Phillips 66					4.07%, 05/15/2021^(e),(f)		260		265
4.65%, 11/15/2034		2,180		2,307	6.00%, 06/30/2021^(f)		220		225
Pioneer Natural Resources Co					7.00%, 11/15/2020^(f)		46		47
3.45%, 01/15/2021		3,955		4,120	7.25%, 05/15/2024^(f)		925		976
4.45%, 01/15/2026		1,645		1,802	Coveris Holdings SA
QEP Resources Inc					7.88%, 11/01/2019^(f)		1,085		1,120
5.25%, 05/01/2023		1,025		1,007	Crown Cork & Seal Co Inc
6.80%, 04/01/2018		200		203	7.38%, 12/15/2026		1,615		1,813
Repsol Oil & Gas Canada Inc					Packaging Corp of America
7.75%, 06/01/2019		6,800		7,478	4.50%, 11/01/2023		5,775		6,313
Seven Generations Energy Ltd					Reynolds Group Issuer Inc / Reynolds Group
6.75%, 05/01/2023^(f)		285		301
					Issuer LLC / Reynolds Group Issuer
Shell International Finance BV					(Luxembourg) S.A.
1.63%, 01/20/2027	EUR	100		119	4.38%, 07/15/2021^(e),(f)		985		1,005
4.00%, 05/10/2046	$	1,815		1,799	5.13%, 07/15/2023^(f)		480		493
Sunoco LP / Sunoco Finance Corp					5.75%, 10/15/2020		1,910		1,960
5.50%, 08/01/2020		765		776	7.00%, 07/15/2024^(f)		130		139
6.38%, 04/01/2023		1,075		1,099


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Packaging & Containers (continued)					Pipelines (continued)
WestRock RKT Co					Kinder Morgan Energy Partners
3.50%, 03/01/2020	$	4,330	$	4,494	LP (continued)
		$		20,727	5.63%, 09/01/2041	$	680	$	679
Pharmaceuticals - 1.26%					Kinder Morgan Inc/DE
AbbVie Inc					2.25%, 03/16/2027	EUR	275		301
2.50%, 05/14/2020		4,940		5,002	3.05%, 12/01/2019	$	1,575		1,614
3.60%, 05/14/2025		365		372	5.05%, 02/15/2046		850		823
4.45%, 05/14/2046		3,020		2,980	Magellan Midstream Partners LP
4.70%, 05/14/2045		925		954	5.00%, 03/01/2026		1,160		1,316
Actavis Funding SCS					MPLX LP
3.00%, 03/12/2020		285		293	4.88%, 06/01/2025		1,107		1,155
3.45%, 03/15/2022		2,000		2,076	ONEOK Partners LP
4.55%, 03/15/2035		2,015		2,081	4.90%, 03/15/2025		2,515		2,741
4.85%, 06/15/2044		1,345		1,423	Phillips 66 Partners LP
Baxalta Inc					3.55%, 10/01/2026		3,660		3,646
4.00%, 06/23/2025		920		963	Sabine Pass Liquefaction LLC
5.25%, 06/23/2045		1,405		1,587	5.00%, 03/15/2027^(f)		900		916
Forest Laboratories LLC					5.63%, 02/01/2021^(e)		990		1,042
5.00%, 12/15/2021^(f)		4,155		4,638	5.63%, 03/01/2025		910		963
Johnson & Johnson					6.25%, 03/15/2022		745		816
1.15%, 11/20/2028	EUR	275		312	Sabine Pass LNG LP
3.70%, 03/01/2046	$	2,465		2,623	7.50%, 11/30/2016		350		351
Novartis Capital Corp					Tesoro Logistics LP / Tesoro Logistics
4.00%, 11/20/2045		80		86	Finance Corp
Shire Acquisitions Investments Ireland DAC					6.13%, 10/15/2021		1,360		1,423
2.40%, 09/23/2021		6,745		6,693	6.25%, 10/15/2022		230		244
2.88%, 09/23/2023		4,745		4,667	6.38%, 05/01/2024		180		194
3.20%, 09/23/2026		7,365		7,232	TransCanada PipeLines Ltd
Teva Pharmaceutical Finance Netherlands II					4.63%, 03/01/2034		965		1,060
BV					5.00%, 10/16/2043		1,605		1,830
1.63%, 10/15/2028	EUR	350		376	7.13%, 01/15/2019		730		810
Teva Pharmaceutical Finance Netherlands III					Transportadora de Gas Internacional SA ESP
BV					5.70%, 03/20/2022		815		843
1.70%, 07/19/2019	$	2,630		2,610	Western Gas Partners LP
Valeant Pharmaceuticals International Inc					4.65%, 07/01/2026		1,620		1,697
5.38%, 03/15/2020^(f)		290		251	5.45%, 04/01/2044		4,410		4,529
5.63%, 12/01/2021^(f)		630		517	Williams Partners LP
5.88%, 05/15/2023^(f)		985		776	3.60%, 03/15/2022		3,185		3,242
7.50%, 07/15/2021^(f)		1,390		1,237	4.00%, 09/15/2025		3,370		3,375
Wyeth LLC					5.10%, 09/15/2045		2,125		2,042
6.00%, 02/15/2036		565		725	Williams Partners LP / ACMP Finance Corp
		$		50,474	4.88%, 05/15/2023		1,555		1,575
Pipelines - 2.05%					6.13%, 07/15/2022		585		607
Antero Midstream Partners LP / Antero							$		82,288
Midstream Finance Corp					Private Equity - 0.06%
5.38%, 09/15/2024^(f)		410		413	Icahn Enterprises LP / Icahn Enterprises
Boardwalk Pipelines LP					Finance Corp
3.38%, 02/01/2023		4,445		4,323	3.50%, 03/15/2017		395		395
5.95%, 06/01/2026		1,880		2,085	4.88%, 03/15/2019		940		936
Buckeye Partners LP					6.00%, 08/01/2020		1,025		1,007
3.95%, 12/01/2026^(h)		3,755		3,750			$		2,338
Cheniere Corpus Christi Holdings LLC					Real Estate - 0.18%
7.00%, 06/30/2024^(f)		100		106	American Campus Communities Operating
Columbia Pipeline Group Inc					Partnership LP
3.30%, 06/01/2020		5,620		5,803	3.35%, 10/01/2020		1,900		1,971
Enbridge Inc					Crescent Communities LLC/Crescent
1.29%, 06/02/2017^(e)		4,580		4,575	Ventures Inc
Energy Transfer Equity LP					8.88%, 10/15/2021^(f)		995		999
5.88%, 01/15/2024		410		417	Crescent Resources LLC / Crescent Ventures
Energy Transfer Partners LP					Inc
4.05%, 03/15/2025		2,885		2,850	10.25%, 08/15/2017 ^(f)		1,310		1,313
4.75%, 01/15/2026		825		850	Kennedy-Wilson Inc
4.90%, 03/15/2035		950		891	5.88%, 04/01/2024		995		1,006
EnLink Midstream Partners LP					Prologis LP
4.15%, 06/01/2025		3,035		2,957	1.38%, 10/07/2020	EUR	250		284
4.40%, 04/01/2024		4,479		4,456	3.00%, 06/02/2026		200		254
4.85%, 07/15/2026		690		703	3.75%, 11/01/2025	$	1,135		1,215
5.05%, 04/01/2045		1,210		1,078			$		7,042
Enterprise Products Operating LLC					Regional Authority - 0.05%
3.70%, 02/15/2026		1,915		1,953	Provincia de Buenos Aires/Argentina
4.90%, 05/15/2046		2,730		2,809	5.75%, 06/15/2019^(f)		1,300		1,332
Kinder Morgan Energy Partners LP
4.70%, 11/01/2042		2,625		2,435


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



				Principal				Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)	Amount (000's) Value (000's)
	Regional Authority (continued)						REITS (continued)
	Provincia de Buenos						Ventas Realty LP / Ventas Capital Corp
	Aires/Argentina (continued)						4.75%, 06/01/2021	$	2,500	$	2,758
	9.13%, 03/16/2024		$	725	$	803	VEREIT Operating Partnership LP
				$		2,135	4.13%, 06/01/2021		1,435		1,492
	REITS- 1.91	%					4.88%, 06/01/2026		1,445		1,519
	American Tower Corp						Welltower Inc
	3.30%, 02/15/2021			1,275		1,324	4.25%, 04/01/2026		2,500		2,667
	3.50%, 01/31/2023			3,545		3,664	4.50%, 12/01/2034	GBP	125		171
	AvalonBay Communities Inc								$		76,609
	2.95%, 05/11/2026			3,150		3,134	Retail - 1.18%
	Brixmor Operating Partnership LP						Claire's Stores Inc
	4.13%, 06/15/2026			1,305		1,341	9.00%, 03/15/2019^(f)	$	840		420
	CC Holdings GS V LLC / Crown Castle GS						CVS Health Corp
	III Corp						2.75%, 12/01/2022		170		173
	3.85%, 04/15/2023			3,570		3,763	2.80%, 07/20/2020		1,110		1,144
	DDR Corp						4.13%, 05/15/2021		130		141
	3.63%, 02/01/2025			2,170		2,177	4.75%, 12/01/2022		6,515		7,304
	DuPont Fabros Technology LP						5.00%, 12/01/2024		80		91
	5.88%, 09/15/2021			1,415		1,482	5.13%, 07/20/2045		2,940		3,430
	Equinix Inc						CVS Pass-Through Trust
	4.88%, 04/01/2020			230		238	7.51%, 01/10/2032^(f)		2,709		3,439
	5.38%, 01/01/2022			935		991	Dollar Tree Inc
	5.38%, 04/01/2023			730		762	5.25%, 03/01/2020		325		337
	5.88%, 01/15/2026			740		791	5.75%, 03/01/2023		650		692
	Essex Portfolio LP						Home Depot Inc/The
	3.38%, 04/15/2026			3,765		3,806	3.35%, 09/15/2025		5,455		5,785
	HCP Inc						JC Penney Corp Inc
	4.25%, 11/15/2023			2,500		2,630	5.65%, 06/01/2020		1,025		1,015
	Healthcare Trust of America Holdings LP						5.88%, 07/01/2023^(f)		355		366
	3.50%, 08/01/2026			4,145		4,133	KFC Holding Co/Pizza Hut Holdings
	Hospitality Properties Trust						LLC/Taco Bell of America LLC
	4.25%, 02/15/2021			4,025		4,258	5.00%, 06/01/2024^(f)		1,220		1,269
	Host Hotels & Resorts LP						5.25%, 06/01/2026^(f)		795		829
	4.50%, 02/01/2026			1,195		1,250	L Brands Inc
	Iron Mountain Inc						5.63%, 02/15/2022		205		224
	4.38%, 06/01/2021^(f)			770		795	6.88%, 11/01/2035		745		790
	Iron Mountain US Holdings Inc						Landry's Inc
	5.38%, 06/01/2026^(f)			825		833	6.75%, 10/15/2024^(f)		1,180		1,204
	iStar Inc						Macy's Retail Holdings Inc
	4.88%, 07/01/2018			390		390	5.90%, 12/01/2016		3,694		3,708
	5.00%, 07/01/2019			125		125	6.90%, 04/01/2029		145		163
	6.50%, 07/01/2021			670		675	McDonald's Corp
	9.00%, 06/01/2017			490		508	1.75%, 05/03/2028	EUR	400		464
	Kimco Realty Corp						2.10%, 12/07/2018	$	1,105		1,119
	2.80%, 10/01/2026			1,135		1,109	2.75%, 12/09/2020		2,685		2,764
	3.40%, 11/01/2022			2,160		2,259	4.70%, 12/09/2035		1,235		1,356
	4.25%, 04/01/2045			2,610		2,606	4.88%, 12/09/2045		2,195		2,457
	MGM Growth Properties Operating						Michaels Stores Inc
	Partnership LP / MGP Finance Co-Issuer Inc						5.88%, 12/15/2020^(f)		1,007		1,036
	5.63%, 05/01/2024^(f)			1,165		1,240	PetSmart Inc
	MPT Operating Partnership LP / MPT Finance						7.13%, 03/15/2023^(f)		1,115		1,166
	Corp						Tops Holding LLC / Tops Markets II Corp
	5.25%, 08/01/2026			220		225	8.00%, 06/15/2022^(f)		975		858
	6.38%, 03/01/2024			532		573	Wal-Mart Stores Inc
	PLA Administradora Industrial S de RL de						1.00%, 04/21/2017		2,750		2,751
	CV						6.75%, 10/15/2023		130		167
	5.25%, 11/10/2022^(f)			300		312	Yum! Brands Inc
	Realty Income Corp						3.88%, 11/01/2020		575		592
	3.00%, 01/15/2027			3,415		3,356			$		47,254
	Retail Properties of America Inc						Savings & Loans - 0.13%
	4.00%, 03/15/2025			5,465		5,360	Nationwide Building Society
	RHP Hotel Properties LP / RHP Finance						1.25%, 03/03/2025	EUR	500		562
	Corp						4.00%, 09/14/2026^(f)	$	4,510		4,449
	5.00%, 04/15/2021			90		93	6.87%, 12/29/2049^(d),(e)	GBP	100		120
	Select Income REIT								$		5,131
	4.15%, 02/01/2022			3,170		3,207	Semiconductors - 0.10%
	Simon Property Group LP						Micron Technology Inc
	2.50%, 09/01/2020			1,720		1,763	5.50%, 02/01/2025	$	715		701
	2.50%, 07/15/2021			2,550		2,606	5.63%, 01/15/2026^(f)		225		218
	Ventas Realty LP						5.88%, 02/15/2022		225		232
	3.13%, 06/15/2023			2,560		2,594	7.50%, 09/15/2023^(f)		685		756
	3.25%, 10/15/2026			1,640		1,629


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Semiconductors (continued)					Sovereign (continued)
NXP BV / NXP Funding LLC					French Republic Government Bond
4.13%, 06/01/2021^(f)	$	505	$	539	OAT (continued)
5.75%, 02/15/2021^(f)		200		208	3.50%, 04/25/2026	EUR	30	$	43
Sensata Technologies UK Financing Co plc					4.50%, 04/25/2041		25		47
6.25%, 02/15/2026^(f)		1,160		1,256	Hungary Government International Bond
		$		3,910	5.38%, 02/21/2023	$	1,590		1,804
Shipbuilding - 0.03%					Indonesia Government International Bond
Huntington Ingalls Industries Inc					5.38%, 10/17/2023^(f)		1,925		2,175
5.00%, 11/15/2025^(f)		1,215		1,278	Ireland Government Bond
					3.40%, 03/18/2024	EUR	360		484
Software - 1.02%					Israel Government International Bond
Activision Blizzard Inc					4.50%, 01/30/2043	$	375		413
2.30%, 09/15/2021^(f)		2,340		2,336	Italy Buoni Poliennali Del Tesoro
3.40%, 09/15/2026^(f)		1,950		1,933	0.25%, 05/15/2018	EUR	235		259
6.13%, 09/15/2023^(f)		970		1,068	2.50%, 12/01/2024		100		119
Fidelity National Information Services Inc					3.50%, 03/01/2030^(f)		500		650
2.25%, 08/15/2021		1,030		1,030	3.75%, 08/01/2021		355		448
First Data Corp					4.25%, 09/01/2019		75		92
5.00%, 01/15/2024^(f)		1,535		1,558	4.75%, 06/01/2017		75		85
5.75%, 01/15/2024^(f)		535		543	5.00%, 09/01/2040		15		23
Microsoft Corp					6.00%, 05/01/2031		20		33
1.55%, 08/08/2021		4,440		4,395	Japan Government Ten Year Bond
2.00%, 11/03/2020		2,515		2,551	0.50%, 12/20/2024	JPY	35,000		351
2.00%, 08/08/2023		3,110		3,067	0.60%, 03/20/2023		30,000		300
2.40%, 08/08/2026		4,940		4,845	1.40%, 06/20/2019		81,000		806
3.45%, 08/08/2036		1,085		1,071	1.50%, 09/20/2018		139,500		1,375
3.70%, 08/08/2046		5,220		5,101	Japan Government Thirty Year Bond
4.45%, 11/03/2045		1,060		1,165	1.50%, 03/20/2045		36,000		434
MSCI Inc					Japan Government Twenty Year Bond
5.25%, 11/15/2024^(f)		785		824	1.40%, 09/20/2034		11,000		125
5.75%, 08/15/2025^(f)		355		377	1.50%, 06/20/2034		100,000		1,156
Oracle Corp					1.90%, 03/20/2024		95,000		1,045
1.90%, 09/15/2021		985		981	Jordan Government International Bond
2.50%, 10/15/2022		773		786	5.75%, 01/31/2027^(f),(h)	$	800		796
2.65%, 07/15/2026		1,515		1,494	Kingdom of Belgium Government Bond
3.13%, 07/10/2025	EUR	100		132	0.80%, 06/22/2025^(f)	EUR	50		57
4.00%, 07/15/2046	$	2,280		2,252	4.25%, 09/28/2022		305		424
4.38%, 05/15/2055		1,895		1,943	Mexican Bonos
Quintiles IMS Inc					5.00%, 12/11/2019^(e)	MXN	3,500		181
5.00%, 10/15/2026^(f)		1,320		1,365	6.50%, 06/10/2021^(e)		11,500		622
		$		40,817	Mexico Government International Bond
Sovereign - 1.23%					3.63%, 03/15/2022	$	100		105
Argentine Republic Government International					4.00%, 10/02/2023		230		242
Bond					4.13%, 01/21/2026		2,600		2,748
7.50%, 04/22/2026^(f)		2,450		2,677	Netherlands Government Bond
7.50%, 04/22/2026		750		819	1.75%, 07/15/2023^(f)	EUR	150		186
					2.00%, 07/15/2024^(f)		170		216
Australia Government Bond
3.25%, 04/21/2029	AUD	125		103	5.50%, 01/15/2028		25		43
4.50%, 04/15/2020		200		166	Oman Government International Bond
					4.75%, 06/15/2026^(f)	$	450		453
Bundesrepublik Deutschland
1.00%, 08/15/2024	EUR	395		472	Panama Government International Bond
1.50%, 09/04/2022		200		243	4.00%, 09/22/2024		925		996
1.50%, 05/15/2024		425		526	Peruvian Government International Bond
4.75%, 07/04/2028		15		25	5.63%, 11/18/2050		400		508
Canada Housing Trust No 1					Qatar Government International Bond
1.70%, 12/15/2017^(f)	CAD	525		396	3.25%, 06/02/2026^(f)		1,200		1,215
2.40%, 12/15/2022^(f)		40		32	Republic of Poland Government Bond
Colombia Government International Bond					5.25%, 10/25/2020	PLN	315		89
5.63%, 02/26/2044	$	675		737	Republic of Poland Government International
7.38%, 03/18/2019		100		113	Bond
Croatia Government International Bond					3.25%, 04/06/2026	$	1,000		1,038
6.38%, 03/24/2021		725		805	Republic of South Africa Government
Denmark Government Bond					International Bond
1.75%, 11/15/2025	DKK	750		125	5.00%, 10/12/2046		475		461
Dominican Republic International Bond					Romanian Government International Bond
6.88%, 01/29/2026^(f)	$	1,275		1,412	4.88%, 01/22/2024^(f)		900		1,008
Export-Import Bank of India					Russian Foreign Bond - Eurobond
3.38%, 08/05/2026^(f)		1,750		1,735	4.75%, 05/27/2026^(f)		400		423
French Republic Government Bond OAT					5.00%, 04/29/2020		800		854
0.50%, 05/25/2025	EUR	100		112	7.50%, 03/31/2030^(e)		2,543		3,076
1.00%, 05/25/2019		200		228	Saudi Government International Bond
					4.50%, 10/26/2046^(f)		1,250		1,230
1.75%, 11/25/2024		485		601
3.00%, 04/25/2022		740		955


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Sovereign (continued)					Telecommunications (continued)
Serbia International Bond					AT&T Inc	(continued)
7.25%, 09/28/2021	$	525	$	603	4.75%, 05/15/2046		$	1,975	$	1,933
Spain Government Bond					5.20%, 11/18/2033		GBP	100		147
0.25%, 04/30/2018	EUR	500		552	6.00%, 08/15/2040		$	1,560		1,780
1.15%, 07/30/2020		100		114	6.38%, 03/01/2041			725		855
2.75%, 10/31/2024^(f)		175		220	Bharti Airtel International Netherlands BV
4.65%, 07/30/2025^(f)		40		57	5.13%, 03/11/2023^(f)			1,950		2,097
4.85%, 10/31/2020^(f)		295		385	CenturyLink Inc
5.15%, 10/31/2044^(f)		25		44	5.63%, 04/01/2025			435		408
5.50%, 04/30/2021^(f)		100		136	7.50%, 04/01/2024			415		432
Sri Lanka Government International Bond					Cisco Systems Inc
6.83%, 07/18/2026^(f)	$	700		739	1.85%, 09/20/2021			1,195		1,193
Sweden Government Bond					2.20%, 02/28/2021			3,795		3,860
1.50%, 11/13/2023	SEK	550		68	2.50%, 09/20/2026			2,200		2,183
4.25%, 03/12/2019		200		25	Deutsche Telekom International Finance BV
Swiss Confederation Government Bond					1.95%, 09/19/2021^(f)			5,300		5,244
2.50%, 03/08/2036	CHF	30		45	Digicel Group Ltd
Turkey Government International Bond					8.25%, 09/30/2020^(f)			900		796
5.75%, 03/22/2024	$	2,075		2,206	Empresa Nacional de Telecomunicaciones
United Kingdom Gilt					SA
1.25%, 07/22/2018	GBP	100		124	4.75%, 08/01/2026^(f)			875		898
1.75%, 07/22/2019		35		45	Frontier Communications Corp
1.75%, 09/07/2022		490		634	8.88%, 09/15/2020			765		813
2.00%, 07/22/2020		40		52	11.00%, 09/15/2025			2,385		2,442
3.25%, 01/22/2044		200		316	10.50%, 09/15/2022			1,250		1,300
4.25%, 12/07/2040		60		108	Goodman Networks Inc
4.75%, 12/07/2030		25		43	12.13%, 07/01/2018 ^(c)			780		333
Uruguay Government International Bond					Intelsat Jackson Holdings SA
5.10%, 06/18/2050	$	425		423	7.25%, 04/01/2019			290		234
Venezuela Government International Bond					7.25%, 10/15/2020			1,220		925
12.75%, 08/23/2022		1,245		720	8.00%, 02/15/2024^(f)			290		291
		$		49,179	Intelsat Luxembourg SA
Student Loan Asset Backed Securities - 0.74%					7.75%, 06/01/2021			1,050		341
Navient Private Education Loan Trust 2014-					8.13%, 06/01/2023			630		208
A					Level 3 Communications Inc
1.01%, 05/16/2022^(e),(f)		17		17	5.75%, 12/01/2022			855		881
Navient Private Education Loan Trust 2015-					Level 3 Financing Inc
A					4.41%, 01/15/2018^(e)			295		295
1.03%, 12/15/2021^(e),(f)		1,521		1,521	5.38%, 01/15/2024			1,685		1,719
Navient Student Loan Trust 2014-8					6.13%, 01/15/2021			270		279
0.81%, 08/25/2020^(e)		509		509	Ooredoo International Finance Ltd
Navient Student Loan Trust 2015-1					3.88%, 01/31/2028			600		615
0.83%, 09/26/2022^(e)		1,144		1,138	Orange SA
SLM Private Education Loan Trust 2012-A					5.75%, 10/29/2049^(d),(e)		GBP	125		164
1.93%, 08/15/2025^(e),(f)		2,212		2,217	SES SA
SLM Private Education Loan Trust 2012-E					4.63%, 03/09/2020		EUR	250		314
1.28%, 10/16/2023^(e),(f)		610		611	Sprint Capital Corp
SLM Private Education Loan Trust 2013-A					6.88%, 11/15/2028		$	565		520
1.13%, 08/15/2022^(e),(f)		1,699		1,701	6.90%, 05/01/2019			640		674
SLM Private Education Loan Trust 2013-B					Sprint Communications Inc
1.18%, 07/15/2022^(e),(f)		2,712		2,712	6.00%, 11/15/2022			1,720		1,603
SLM Private Education Loan Trust 2014-A					7.00%, 08/15/2020			1,445		1,503
1.13%, 07/15/2022^(e),(f)		4,125		4,129	9.13%, 03/01/2017			236		241
SLM Student Loan Trust 2012-6					Sprint Corp
0.81%, 09/25/2019^(e)		2,446		2,445	7.13%, 06/15/2024			1,995		1,875
SMB Private Education Loan Trust 2016-B					7.88%, 09/15/2023			860		851
1.18%, 11/15/2023^(e),(f)		5,184		5,191	Telstra Corp Ltd
Sofi Professional Loan Program 2016-A LLC					2.50%, 09/15/2023		EUR	250		311
2.28%, 08/25/2036^(e),(f)		4,195		4,315	T-Mobile USA Inc
Sofi Professional Loan Program 2016-B LLC					6.00%, 03/01/2023		$	540		568
1.68%, 03/25/2031^(f)		3,381		3,385	6.13%, 01/15/2022			185		195
		$		29,891	6.25%, 04/01/2021			2,695		2,806
Telecommunications - 2.84%					6.50%, 01/15/2024			190		203
AT&T Inc					6.50%, 01/15/2026			1,140		1,250
2.38%, 11/27/2018		795		805	6.63%, 04/28/2021			585		614
2.45%, 06/30/2020		3,555		3,576	Verizon Communications Inc
2.75%, 05/19/2023	EUR	250		305	1.23%, 06/09/2017^(e)			7,740		7,753
3.40%, 05/15/2025	$	2,180		2,173	1.35%, 06/09/2017			3,270		3,273
3.60%, 02/17/2023		4,940		5,086	1.38%, 08/15/2019			110		109
3.80%, 03/15/2022		3,867		4,071	2.38%, 02/17/2022		EUR	400		481
					2.61%, 09/14/2018^(e)		$	7,303		7,499
4.13%, 02/17/2026		1,845		1,932
4.45%, 05/15/2021		1,360		1,468	2.63%, 08/15/2026			4,045		3,871
4.50%, 05/15/2035		4,555		4,522	2.63%, 12/01/2031		EUR	150		181


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



		Principal				SENIOR FLOATING RATE INTERESTS		Principal
BONDS (continued)		Amount (000's) Value (000's)				(continued)		Amount (000's)		Value(000	's)
Telecommunications (continued)						Automobile Manufacturers (continued)
Verizon Communications Inc (continued)						Navistar Inc, Term Loan B
4.07%, 06/18/2024^(f)		GBP	100	$	138	6.50%, 08/06/2020^(e)	$	475	$	478
4.52%, 09/15/2048		$	266		265				$	1,504
4.75%, 02/17/2034		GBP	150		220	Building Materials - 0.02%
5.01%, 08/21/2054		$	3,068		3,163	GYP Holdings III Corp, Term Loan
5.15%, 09/15/2023			7,692		8,799	4.50%, 04/01/2021^(e)		795		794
VimpelCom Holdings BV
7.50%, 03/01/2022^(f)			2,100		2,318	Chemicals - 0.17%
Vodafone Group PLC						A Schulman Inc, Term Loan B
2.50%, 09/26/2022			2,720		2,710	4.00%, 05/11/2022^(e)		570		569
Wind Acquisition Finance SA						Aruba Investments Inc, Term Loan B
4.75%, 07/15/2020^(f)			1,245		1,251	4.50%, 02/02/2022^(e)		254		254
7.38%, 04/23/2021^(f)			1,775		1,824	Emerald Performance Materials LLC, Term
			$		113,987	Loan
Transportation - 0.76%						7.75%, 07/22/2022^(e)		2,570		2,554
Burlington Northern Santa Fe LLC						Ineos US Finance LLC, Term Loan B
3.85%, 09/01/2023			2,455		2,677	3.75%, 12/15/2020^(e)		1,801		1,805
5.05%, 03/01/2041			1,410		1,663	Methanol Holdings Trinidad Ltd, Term Loan
CSX Corp						B
2.60%, 11/01/2026			4,585		4,493	4.25%, 06/16/2022^(e)		1,636		1,583
3.95%, 05/01/2050			1,255		1,225				$	6,765
5.50%, 04/15/2041			1,880		2,237	Commercial Services - 0.03%
6.25%, 03/15/2018			740		791	Fly Funding II Sarl, Term Loan
7.38%, 02/01/2019			964		1,086	3.50%, 02/28/2022^(e)		1,171		1,173
Eletson Holdings Inc
9.63%, 01/15/2022^(f)			1,595		1,172	Computers - 0.01%
FedEx Corp						CompuCom Systems Inc, Term Loan B
1.00%, 01/11/2023		EUR	700		782	4.25%, 05/09/2020^(e)		590		430
4.55%, 04/01/2046		$	1,165		1,248
4.75%, 11/15/2045			4,850		5,274	Consumer Products - 0.02%
Hornbeck Offshore Services Inc						Dell International LLC, Term Loan B
5.00%, 03/01/2021			445		265	4.00%, 06/02/2023^(e)		870		876
Navios Maritime Acquisition Corp / Navios
Acquisition Finance US Inc						Diversified Financial Services - 0.05%
8.13%, 11/15/2021^(f)			2,810		2,121	Delos Finance Sarl, Term Loan B
Navios Maritime Holdings Inc / Navios						3.59%, 02/26/2021^(e)		1,970		1,981
Maritime Finance II US Inc
7.38%, 01/15/2022^(f)			1,235		642	Electric - 0.02%
8.13%, 02/15/2019			385		223	Dynegy Inc, Term Loan C
Navios South American Logistics Inc / Navios						5.00%, 06/22/2023^(e)		680		682
Logistics Finance US Inc
7.25%, 05/01/2022^(f)			2,610		2,062	Entertainment - 0.22%
Union Pacific Corp						CCM Merger Inc, Term Loan B
3.80%, 10/01/2051^(f)			1,133		1,119	4.50%, 07/30/2021^(e)		1,508		1,512
4.38%, 11/15/2065			890		950	Eldorado Resorts Inc, Term Loan B
United Parcel Service Inc						4.25%, 07/15/2022^(e)		859		862
1.63%, 11/15/2025		EUR	250		295	Lions Gate Entertainment Corp, Term Loan
5.13%, 02/12/2050		GBP	50		94	B
			$		30,419	0.00%, 10/13/2023^(e),(j)		2,520		2,516
Trucking & Leasing - 0.07%						5.00%, 03/11/2022^(e)		2,180		2,218
Penske Truck Leasing Co Lp / PTL Finance						WMG Acquisition Corp, Term Loan B
Corp						3.75%, 07/07/2020^(e)		1,568		1,565
3.38%, 02/01/2022^(f)		$	2,710		2,801				$	8,673
						Food- 0.05%
TOTAL BONDS			$		2,730,331	B&G Foods Inc, Term Loan B
		Principal				3.84%, 10/21/2022^(e)		1,033		1,041
CONVERTIBLE BONDS - 0.01%		Amount (000's) Value (000's)				JBS USA LUX SA, Term Loan B
Semiconductors - 0.01%						4.00%, 08/18/2022^(e)		570		569
Jazz US Holdings Inc						Pinnacle Foods Finance LLC, Term Loan I
8.00%, 12/31/2018			318		518	3.28%, 01/13/2023^(e)		466		470
									$	2,080
TOTAL CONVERTIBLE BONDS			$		518	Forest Products & Paper - 0.08%
SENIOR FLOATING RATE INTERESTS -		Principal				Caraustar Industries Inc, Term Loan B
2.09	%	Amount (000's) Value (000's)				8.00%, 04/26/2019^(e)		552		557
Aerospace & Defense - 0.06%						8.00%, 05/01/2019^(e)		2,812		2,838
B/E Aerospace Inc, Term Loan B									$	3,395
3.82%, 12/16/2021^(e)		$	2,545	$	2,559	Healthcare - Products - 0.06%
						Kinetic Concepts Inc, Term Loan F1
Automobile Manufacturers - 0.04%						5.00%, 11/04/2020^(e)		1,259		1,267
FCA US LLC, Term Loan B
3.50%, 05/24/2017^(e)			1,026		1,026


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 - Products (continued)						Oil & Gas (continued)
Mallinckrodt International Finance SA, Term						Seadrill Operating LP, Term Loan B
Loan B						4.00%, 02/12/2021^(e)		$	2,355	$	1,309
3.34%, 03/19/2021^(e)		$	1,237	$	1,234				$		4,619
			$		2,501	Oil & Gas Services - 0.05%
Healthcare - Services - 0.17%						Navios Maritime Midstream Partners LP,
Acadia Healthcare Co Inc, Term Loan B2						Term Loan B
3.75%, 02/16/2023^(e)			691		693	5.50%, 06/15/2020^(e)			1,645		1,596
DaVita Inc, Term Loan B						Seventy Seven Operating LLC, Term Loan B
3.50%, 06/18/2021^(e)			780		779	3.89%, 06/17/2021^(e)			230		212
Lantheus Medical Imaging Inc, Term Loan B									$		1,808
7.00%, 06/24/2022^(e)			2,314		2,268	Packaging & Containers - 0.05%
MPH Acquisition Holdings LLC, Term Loan						Berry Plastics Group Inc, Term Loan H
B						3.75%, 10/01/2022^(e)			531		533
5.00%, 05/25/2023^(e)			1,937		1,958	Coveris Holdings SA, Term Loan B
Radnet Management Inc, Term Loan B						4.50%, 05/08/2019^(e)			683		683
8.00%, 03/25/2021^(e)			1,246		1,230	SIG Combibloc US Acquisition Inc, Term
			$		6,928	Loan B
Insurance - 0.07%						4.00%, 03/11/2022^(e)			660		660
Asurion LLC, Term Loan									$		1,876
8.50%, 02/19/2021^(e)			505		508	Pharmaceuticals - 0.11%
Asurion LLC, Term Loan B1						DPx Holdings BV, Term Loan B
5.00%, 05/24/2019^(e)			193		193	4.25%, 01/22/2021^(e)			1,238		1,239
Asurion LLC, Term Loan B2						Endo Luxembourg Finance Co I Sarl, Term
4.25%, 06/19/2020^(e)			337		337	Loan B
Lonestar Intermediate Super Holdings LLC,						3.75%, 06/24/2022^(e)			159		159
PIK Term Loan						Grifols Worldwide Operations USA Inc, Term
10.00%, PIK 0.75%, 08/10/2021 ^(e),(g)			1,925		1,938	Loan B
			$		2,976	3.46%, 03/05/2021^(e)			1,202		1,211
Internet - 0.01%						Valeant Pharmaceuticals International Inc,
Zayo Group LLC, Term Loan B						Term Loan BE1
3.75%, 05/06/2021^(e)			587		589	5.25%, 08/05/2020^(e)			1,224		1,219
						Valeant Pharmaceuticals International Inc,
Investment Companies - 0.02%						Term Loan BF1
Frank Russell Co, Term Loan B						5.50%, 04/01/2022^(e)			582		579
6.75%, 05/10/2023^(e)			753		757				$		4,407
						REITS- 0.12	%
Lodging - 0.03%						iStar Inc, Term Loan B
Hilton Worldwide Finance LLC, Term Loan						5.50%, 07/01/2020^(e)			4,086		4,124
B1						MGM Growth Properties Operating
3.50%, 09/23/2020^(e)			108		108	Partnership LP, Term Loan B
Hilton Worldwide Finance LLC, Term Loan						4.00%, 04/07/2023^(e)			583		584
B2									$		4,708
3.03%, 10/25/2023^(e)			1,100		1,105
						Retail - 0.24%
			$		1,213	Academy Ltd, Term Loan B
Media- 0.09	%					5.00%, 06/16/2022^(e)			1,313		1,272
SFR Group SA, Term Loan B						Dollar Tree Inc, Term Loan B2
5.14%, 01/08/2024^(e)			731		737	4.18%, 07/06/2022^(e)			1,655		1,676
Univision Communications Inc, Term Loan						FOCUS Brands Inc, Term Loan
C3						5.00%, 10/03/2023^(e)			1,832		1,851
4.00%, 03/01/2020^(e)			154		154	JC Penney Corp Inc, Term Loan B
Univision Communications Inc, Term Loan						5.25%, 06/09/2023^(e)			661		665
C4						KFC Holding Co, Term Loan B
4.00%, 03/01/2020^(e)			1,379		1,382	3.29%, 06/02/2023^(e)			858		866
WideOpenWest Finance LLC, Term Loan B						Landry's Inc, Term Loan
4.50%, 08/11/2023^(e)			1,351		1,347	4.00%, 09/21/2023^(e)			680		684
			$		3,620	Michaels Stores Inc, Term Loan B1
Mining - 0.04%						3.75%, 01/27/2023^(e)			1,249		1,258
FMG Resources August 2006 Pty Ltd, Term						PetSmart Inc, Term Loan B
Loan B						4.00%, 03/11/2022^(e)			1,332		1,334
3.75%, 06/30/2019^(e)			1,726		1,725				$		9,606
						Semiconductors - 0.09%
Oil & Gas - 0.12%						Avago Technologies Cayman Finance Ltd,
California Resources Corp, Term Loan						Term Loan B3
11.37%, 12/31/2021 ^(e)			145		156	3.65%, 02/01/2023^(e)			2,071		2,092
Chesapeake Energy Corp, Term Loan 1.5						NXP BV, Term Loan B
8.50%, 08/17/2021^(e)			1,950		2,083	3.41%, 12/07/2020^(e)			1,595		1,600
Drillships Financing Holding Inc, Term Loan									$		3,692
B1						Software - 0.05%
6.00%, 03/31/2021^(e)			918		468	Evergreen Skills Lux Sarl, Term Loan
EP Energy LLC, Term Loan 1.5						3.75%, 04/08/2021^(e)			766		765
9.75%, 06/30/2021^(e)			590		603


Schedule of Investments
Core Plus Bond Fund
October 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)
Software (continued)							Federal Home Loan Mortgage Corporation (FHLMC) (continued)
First Data Corp, Term Loan B							7.00%, 06/01/2030	$	13	$	15
4.27%, 07/08/2022^(e)	$	1,230		$	1,238		7.00%, 12/01/2030		11		12
				$	2,003		7.00%, 09/01/2031		2		2
TOTAL SENIOR FLOATING RATE INTERESTS			$	83,940			7.50%, 09/01/2030		1		1
U.S. GOVERNMENT & GOVERNMENT	Principal						7.50%, 09/01/2030		2		2
AGENCY OBLIGATIONS - 34.87%	Amount (000's)			Value(000		's)	7.50%, 01/01/2031		11		14
Federal Home Loan Mortgage Corporation (FHLMC) - 4.56%							7.50%, 03/01/2031		3		3
2.09%, 06/01/2043^(e)	$	980		$	1,021		7.50%, 02/01/2032		4		5
2.72%, 12/01/2035^(e)		40			42		8.00%, 09/01/2030		51		54
2.76%, 07/01/2034^(e)		14			15					$	182,950
2.77%, 07/01/2043^(e)		5,397			5,575		Federal National Mortgage Association (FNMA) - 14.14%
2.83%, 05/01/2037^(e)		300			317		2.30%, 10/01/2034^(e)		164		171
2.86%, 01/01/2034^(e)		47			48		2.45%, 12/01/2032^(e)		97		101
3.00%, 01/01/2043		3,640			3,780		2.50%, 04/01/2028		3,761		3,873
3.00%, 02/01/2043		1,535			1,592		2.50%, 06/01/2028		245		253
3.00%, 03/01/2043		684			714		2.50%, 09/01/2029		1,149		1,183
3.50%, 06/01/2044		1,433			1,515		2.50%, 03/01/2030		13,633		14,054
3.50%, 04/01/2046		29,650		31,221			2.50%, 11/01/2031^(k)		71,600		73,675
3.50%, 11/01/2046^(k)		32,000		33,584			2.59%, 12/01/2036^(e)		507		536
4.00%, 02/01/2044		14,247		15,360			2.64%, 01/01/2033^(e)		53		55
4.00%, 10/01/2044		3,656			3,945		2.67%, 02/01/2036^(e)		18		19
4.00%, 01/01/2045		9,571		10,329			2.70%, 04/01/2036^(e)		243		255
4.00%, 08/01/2045		5,540			5,977		2.77%, 07/01/2033^(e)		894		940
4.00%, 01/01/2046		16,183		17,323			2.99%, 08/01/2035^(e)		217		232
4.50%, 04/01/2031		1,318			1,444		3.00%, 11/01/2026^(k)		17,000		17,790
4.50%, 04/01/2041		8,025			8,809		3.00%, 07/01/2028		6,738		7,077
4.50%, 12/01/2043		7,632			8,415		3.00%, 10/01/2029		1,525		1,602
4.50%, 09/01/2044		9,666		10,624			3.00%, 10/01/2030		6,056		6,361
5.00%, 03/01/2018		99			102		3.00%, 08/01/2034		7,137		7,429
5.00%, 05/01/2018		74			76		3.00%, 10/01/2034		3,598		3,746
5.00%, 10/01/2018		51			53		3.00%, 12/01/2040		224		231
5.00%, 01/01/2019		94			97		3.00%, 11/01/2042		660		684
5.00%, 06/01/2031		1,060			1,178		3.00%, 03/01/2043		5,747		5,930
5.00%, 02/01/2039		1,174			1,297		3.00%, 04/01/2043		31,104		32,090
5.00%, 09/01/2039		2,728			3,047		3.00%, 04/01/2043		748		771
5.00%, 08/01/2040		2,738			3,063		3.00%, 05/01/2043		7,194		7,421
5.00%, 03/01/2041		3,189			3,558		3.00%, 05/01/2043		1,174		1,217
5.50%, 03/01/2018		37			37		3.00%, 08/01/2043		4,806		4,957
5.50%, 08/01/2023		625			679		3.00%, 11/01/2046^(k)		39,500		40,666
5.50%, 05/01/2033		90			103		3.10%, 03/01/2035^(e)		3,437		3,675
5.50%, 10/01/2033		85			96		3.21%, 04/01/2033^(e)		172		182
5.50%, 12/01/2033		877			990		3.37%, 04/01/2041^(e)		872		913
5.50%, 11/01/2036		721			822		3.50%, 04/01/2030		10,149		10,875
5.50%, 04/01/2038		340			390		3.50%, 10/01/2033		4,382		4,662
5.50%, 08/01/2038		620			720		3.50%, 08/01/2034		3,175		3,358
5.50%, 03/01/2040		956			1,092		3.50%, 01/01/2041		332		348
6.00%, 07/01/2017		1			1		3.50%, 11/01/2041^(k)		46,000		48,293
6.00%, 03/01/2022		27			31		3.50%, 05/01/2043		526		559
6.00%, 07/01/2023		281			321		3.50%, 07/01/2043		2,616		2,786
6.00%, 06/01/2028		4			4		3.50%, 09/01/2044		8,209		8,713
6.00%, 01/01/2029		1			2		3.50%, 11/01/2044		5,617		5,956
6.00%, 03/01/2031		16			18		3.50%, 03/01/2045		11,307		12,022
6.00%, 12/01/2031		43			50		3.50%, 04/01/2045		5,290		5,594
6.00%, 12/01/2032		42			49		3.50%, 04/01/2046		17,470		18,350
6.00%, 02/01/2033		142			162		3.50%, 06/01/2046		9,863		10,372
6.00%, 12/01/2033		50			57		3.50%, 07/01/2046		14,851		15,618
6.00%, 10/01/2036^(e)		330			382		3.50%, 10/01/2046		6,380		6,753
6.00%, 12/01/2037^(e)		120			137		4.00%, 08/01/2020		972		1,008
6.00%, 01/01/2038		438			513		4.00%, 01/01/2029		3,047		3,195
6.00%, 01/01/2038^(e)		69			80		4.00%, 02/01/2031		488		527
6.00%, 07/01/2038		1,491			1,711		4.00%, 03/01/2034		1,134		1,247
6.50%, 03/01/2029		1			1		4.00%, 04/01/2034		5,935		6,509
6.50%, 03/01/2029		8			10		4.00%, 05/01/2044		5,593		6,047
6.50%, 05/01/2029		11			13		4.00%, 06/01/2044		9,057		9,773
6.50%, 04/01/2031		5			6		4.00%, 02/01/2045		391		419
6.50%, 06/01/2031		1			1		4.00%, 03/01/2045		5,750		6,154
6.50%, 09/01/2031		4			4		4.00%, 05/01/2045		22,499		24,281
6.50%, 02/01/2032		3			4		4.00%, 10/01/2045		3,943		4,222
6.50%, 02/01/2032		1			1		4.00%, 10/01/2045		7,693		8,295
6.50%, 05/01/2032		14			17		4.00%, 12/01/2045		10,873		11,687
6.50%, 04/01/2035		98			118		4.50%, 04/01/2024		1,677		1,797
6.50%, 10/01/2035		74			90
7.00%, 12/01/2029		8			9
See accompanying notes.							242


Schedule of Investments
Core Plus Bond Fund
October 31, 2016



U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal	Value (000's)
AGENCY OBLIGATIONS (continued)		Amount (000's)	Value (000's)		AGENCY OBLIGATIONS (continued)		Amount (000's)	Value (000's)
Federal National Mortgage Association (FNMA) (continued)					Government National Mortgage Association (GNMA) (continued)
4.50%, 12/01/2044	$	14,391	$	15,720	4.50%, 01/20/2044	$	4,652	$	5,024
4.50%, 10/01/2045		10,220		11,170	5.00%, 11/15/2033		2,694		3,023
4.50%, 11/01/2045		1,840		2,011	5.00%, 06/15/2034		52		58
5.00%, 03/01/2018		29		30	5.00%, 10/20/2039		251		280
5.00%, 09/01/2033		5,955		6,622	5.00%, 07/20/2040		471		511
5.00%, 02/01/2035		3,081		3,458	5.00%, 02/15/2042		1,917		2,148
5.00%, 05/01/2039		2,032		2,271	5.50%, 10/15/2033		969		1,146
5.00%, 05/01/2040		7,381		8,324	5.50%, 05/20/2035		102		116
5.00%, 06/01/2040		167		185	5.50%, 02/15/2038		1,172		1,327
5.00%, 05/01/2041		3,470		3,856	6.00%, 07/20/2028		45		51
5.00%, 06/01/2041		3,777		4,244	6.00%, 11/20/2028		39		45
5.00%, 10/01/2041		4,551		5,055	6.00%, 01/20/2029		43		51
5.00%, 01/01/2042		4,145		4,647	6.00%, 07/20/2029		10		11
5.50%, 09/01/2017		3		3	6.00%, 08/15/2031		21		24
5.50%, 10/01/2017		5		5	6.00%, 01/15/2032		4		5
5.50%, 06/01/2020		134		139	6.00%, 02/15/2032		38		43
5.50%, 09/01/2020		698		743	6.00%, 02/15/2033		42		48
5.50%, 02/01/2023		47		53	6.00%, 12/15/2033		48		57
5.50%, 06/01/2023		128		144	6.50%, 03/20/2028		8		9
5.50%, 07/01/2023		4		4	6.50%, 05/20/2029		8		9
5.50%, 07/01/2033		181		206	6.50%, 10/15/2032		23		27
5.50%, 09/01/2033		224		255	6.50%, 12/15/2032		88		101
5.50%, 08/01/2036		1,900		2,153	7.00%, 06/15/2031		15		18
5.50%, 02/01/2037		102		116	7.00%, 07/15/2031		2		2
5.50%, 04/01/2038		3,371		3,833	7.00%, 06/15/2032		131		152
5.50%, 12/01/2038		1,470		1,682	8.00%, 01/20/2031		6		7
5.50%, 05/01/2040		683		771				$	192,233
6.00%, 02/01/2023		20		23	U.S. Treasury - 10.16%
6.00%, 11/01/2035		1,627		1,893	0.50%, 04/30/2017		1,975		1,975
6.00%, 02/01/2038^(e)		746		854	0.88%, 07/15/2018		8,570		8,576
6.00%, 05/01/2038		153		175	1.25%, 11/30/2018		250		252
6.00%, 08/01/2038		428		490	1.25%, 01/31/2019		300		302
6.00%, 08/01/2038		233		267	1.25%, 01/31/2020		2,000		2,011
6.00%, 03/01/2040		4,627		5,308	1.25%, 07/31/2023		19,080		18,654
6.50%, 08/01/2017		4		4	1.38%, 12/31/2018^(l)		45,520		45,966
6.50%, 05/01/2022		9		10	1.38%, 03/31/2020		13,650		13,774
6.50%, 12/01/2031		5		6	1.38%, 04/30/2020		12,450		12,560
6.50%, 02/01/2032		3		3	1.50%, 01/31/2022		2,025		2,035
6.50%, 02/01/2032		2		2	1.50%, 08/15/2026		100		97
6.50%, 04/01/2032		7		9	1.63%, 04/30/2023		500		501
6.50%, 06/01/2032		2		3	1.63%, 05/15/2026^(l)		25,000		24,555
6.50%, 08/01/2032		11		13	1.75%, 09/30/2019		25,130		25,673
6.50%, 07/01/2037		605		733	1.75%, 10/31/2020		1,000		1,021
6.50%, 07/01/2037		392		466	1.75%, 04/30/2022		1,830		1,860
6.50%, 12/01/2037		479		551	1.88%, 11/30/2021		30,000		30,735
6.50%, 02/01/2038		480		581	2.00%, 05/31/2021		4,540		4,680
6.50%, 03/01/2038		215		247	2.13%, 08/31/2020		6,075		6,288
6.50%, 09/01/2038		779		942	2.13%, 12/31/2021		95		99
7.00%, 02/01/2032		17		18	2.13%, 05/15/2025		12,185		12,529
7.00%, 03/01/2032		36		39	2.25%, 11/15/2025		200		207
7.50%, 08/01/2032		8		8	2.38%, 05/31/2018		350		359
			$	567,854	2.38%, 08/15/2024		325		341
Government National Mortgage Association (GNMA) - 4.79%					2.50%, 02/15/2045		450		442
1.50%, 07/20/2043^(e)		917		940	2.75%, 08/15/2042		2,645		2,748
3.00%, 06/20/2043		4,656		4,871	2.88%, 08/15/2045		10,390		11,010
3.00%, 01/20/2045		2,424		2,529	3.00%, 11/15/2044		23,400		25,416
3.00%, 01/20/2046		8,607		8,977	3.00%, 05/15/2045		2,545		2,763
3.00%, 11/01/2046		68,000		70,837	3.00%, 11/15/2045		29,000		31,485
3.50%, 03/15/2042		1,765		1,906	3.13%, 02/15/2042		25		28
3.50%, 04/15/2042		435		464	3.25%, 12/31/2016		150		151
3.50%, 04/15/2042		1,882		2,014	3.38%, 05/15/2044		495		576
3.50%, 10/15/2042		2,097		2,223	3.75%, 11/15/2043^(m)		37,035		46,030
3.50%, 06/15/2043		10,223		10,988	3.88%, 08/15/2040		44,545		55,727
3.50%, 01/20/2045		1,000		1,059	4.38%, 05/15/2040		12,140		16,291
3.50%, 11/01/2046		34,500		36,538	4.50%, 02/15/2036		175		238
4.00%, 02/15/2042		1,467		1,595	4.75%, 02/15/2041		70		99
4.00%, 02/20/2046		12,697		13,604	6.25%, 05/15/2030		100		151
4.50%, 06/20/2025		4,358		4,697				$	408,205
4.50%, 09/15/2039		469		526	U.S. Treasury Bill - 0.25%
4.50%, 03/15/2040		4,788		5,287	0.30%, 12/01/2016⁽ⁿ⁾		10,000		9,999
4.50%, 08/15/2040		8,058		8,885

(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.


Foreign Currency Contracts

								Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For		Fair Value		Asset			Liability
Brown Brothers Harriman & Co	12/06/2016	JPY	3,685,529	$	36	$	35	$	—		$	(1	)
Total								$	—		$	(1	)
								Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset			Liability
Brown Brothers Harriman & Co	11/04/2016	EUR	18,057,084	$	20,346	$	19,824	$	522		$	—
Brown Brothers Harriman & Co	11/04/2016	GBP	4,501,244		6,014		5,510		504			—
Brown Brothers Harriman & Co	12/06/2016	CHF	66,306		68		67		1			—
Brown Brothers Harriman & Co	12/06/2016	EUR	7,509,539		8,439		8,254		185			—
Brown Brothers Harriman & Co	12/06/2016	GBP	1,160,732		1,544		1,421		123			—
Goldman Sachs & Co	12/06/2016	CAD	624,698		477		466		11			—
Goldman Sachs & Co	12/06/2016	JPY	611,501,759		5,944		5,839		105			—
Goldman Sachs & Co	12/06/2016	SEK	888,004		104		98		6			—
JPMorgan Chase	12/06/2016	AUD	432,512		326		329		—			(3	)
JPMorgan Chase	12/06/2016	DKK	903,859		137		134		3			—
JPMorgan Chase	12/06/2016	MXN	16,289,781		858		858		—			—
JPMorgan Chase	12/06/2016	PLN	387,632		100		99		1			—
Total								$	1,461		$	(3	)

Amounts in thousands except contracts


Futures Contracts

												Unrealized
Type	Long/Short		Contracts		Notional Value				Fair Value			Appreciation/(Depreciation)
US 10 Year Note; December 2016		Long	198	$	25,999			$	25,666	$		(333	)
US 10 Year Ultra Note; December 2016		Long	298		43,024				42,171			(853	)
US 2 Year Note; December 2016		Short	350		76,473				76,349			124
US 5 Year Note; December 2016		Short	70		8,508				8,456			52
US Long Bond; December 2016		Short	25		4,266				4,068			198
Total									$			(812	)

Amounts in thousands except contracts


COMMON STOCKS - 96.64%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.93%					Commercial Services (continued)
WPP PLC	3,435,973	$	74,606		New Oriental Education & Technology Group	737,029	$	36,947
					Inc ADR^(a)
Aerospace & Defense - 0.50%					Qualicorp SA	3,007,800		19,440
Thales SA	423,539		39,849		TAL Education Group ADR^(a)	442,735		36,056
							$	202,303
Agriculture - 1.73%					Computers - 1.33%
British American Tobacco PLC	1,606,574		92,078		Atos SE	296,008		30,718
KT&G Corp	471,165		46,471		Capgemini SA	541,405		44,838
		$	138,549		CGI Group Inc ^(a)	653,200		31,026
Airlines - 0.47%							$	106,582
Ryanair Holdings PLC ADR^(a)	502,521		37,734		Cosmetics & Personal Care - 0.55%
					Svenska Cellulosa AB SCA	1,539,065		43,591
Apparel - 0.86%
Adidas AG	303,618		49,883		Distribution & Wholesale - 2.02%
Burberry Group PLC	1,043,309		18,816		ITOCHU Corp	2,766,700		34,940
		$	68,699		Mitsubishi Corp	3,845,100		83,688
Automobile Manufacturers - 3.17%					Sumitomo Corp	3,697,100		42,504
Fuji Heavy Industries Ltd	1,807,100		70,615				$	161,132
Maruti Suzuki India Ltd	599,343		52,983		Diversified Financial Services - 1.55%
Tata Motors Ltd ADR	598,173		23,574		Macquarie Group Ltd	622,857		37,651
Toyota Motor Corp	1,825,637		105,899		ORIX Corp	4,252,490		67,387
		$	253,071		Zenkoku Hosho Co Ltd	430,000		18,488
Automobile Parts & Equipment - 0.95%							$	123,526
Continental AG	230,577		44,292		Electric - 1.82%
Toyota Industries Corp	687,400		31,540		Enel SpA	8,444,637		36,306
		$	75,832		Iberdrola SA	6,016,413		40,945
Banks - 11.61%					Korea Electric Power Corp	1,135,517		49,123
Australia & New Zealand Banking Group Ltd	2,451,318		51,761		Power Grid Corp of India Ltd	7,333,784		19,234
Axis Bank Ltd	4,069,574		29,769				$	145,608
Bancolombia SA ADR	419,196		16,047		Electrical Components & Equipment - 0.50%
Bangkok Bank PCL	3,195,700		14,510		Brother Industries Ltd	950,300		17,437
Bank of Ireland ^(a)	130,674,624		27,972		Prysmian SpA	894,586		22,247
Bank of Nova Scotia/The	1,246,800		67,002				$	39,684
Bank Rakyat Indonesia Persero Tbk PT	23,332,700		21,787		Electronics - 1.07%
Barclays Africa Group Ltd	2,665,568		30,932		Hitachi High-Technologies Corp	351,500		14,660
BNP Paribas SA	1,626,377		94,303		Hoya Corp	1,214,204		50,661
Credicorp Ltd	202,547		30,115		Yokogawa Electric Corp	1,451,700		20,392
Danske Bank A/S	1,668,297		51,465				$	85,713
Erste Group Bank AG	1,272,700		39,911		Energy - Alternate Sources - 0.68%
HDFC Bank Ltd ^(b)	355,715		7,907		Vestas Wind Systems A/S	676,099		54,166
HDFC Bank Ltd ADR	337,430		23,883
ING Groep NV	4,370,290		57,369		Engineering & Construction - 2.49%
Mitsubishi UFJ Financial Group Inc	15,456,976		79,755		Aena SA ^(c)	226,584		33,203
Royal Bank of Canada	1,116,059		69,728		Eiffage SA	574,135		42,506
Sberbank of Russia PJSC ADR	2,816,112		26,672		Promotora y Operadora de Infraestructura	1,453,967		16,220
Siam Commercial Bank PCL/The ^(b)	2,948,900		12,074		SAB de CV
Skandinaviska Enskilda Banken AB	3,973,136		40,075		Skanska AB	1,348,492		29,284
Toronto-Dominion Bank/The	2,182,334		99,021		Vinci SA	1,078,631		78,114
Yes Bank Ltd	1,895,530		35,986				$	199,327
		$	928,044		Entertainment - 0.18%
Beverages - 0.55%					Paddy Power Betfair PLC	141,994		14,709
Diageo PLC	1,650,428		43,929
					Food - 3.81%
Biotechnology - 0.86%					Greencore Group PLC	3,838,231		15,489
CSL Ltd	408,299		31,156		JBS SA	6,184,900		18,834
Genmab A/S ^(a)	229,114		37,729		Koninklijke Ahold Delhaize NV ^(a)	2,663,636		60,764
		$	68,885		Marine Harvest ASA ^(a)	1,289,507		23,400
Building Materials - 1.27%					Nestle SA	1,671,397		121,200
CRH PLC	2,270,483		73,709		Tate & Lyle PLC	2,853,868		27,217
Kingspan Group PLC	1,159,133		28,167		Uni-President Enterprises Corp	9,716,840		18,773
		$	101,876		X5 Retail Group NV ^(a)	636,572		18,974
Chemicals - 1.82%							$	304,651
Covestro AG ^(c)	353,820		20,952		Food Service - 0.54%
Evonik Industries AG	1,039,105		32,541		Compass Group PLC	2,377,090		43,012
Givaudan SA	16,008		30,961
Lonza Group AG ^(a)	324,451		61,225		Forest Products & Paper - 1.09%
		$	145,679		Mondi PLC	2,104,109		41,063
Commercial Services - 2.53%					UPM-Kymmene OYJ	1,980,478		46,069
Ashtead Group PLC	2,269,627		35,364				$	87,132
Brookfield Business Partners LP	21,310		495		Gas - 0.64%
Intertek Group PLC	904,272		37,728		National Grid PLC	3,914,924		50,925
Kroton Educacional SA	7,286,500		36,273


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Hand & Machine Tools - 0.20%					Oil & Gas (continued)
Fuji Electric Co Ltd	3,169,737	$	15,828		China Petroleum & Chemical Corp	37,520,000	$	27,134
					Galp Energia SGPS SA	1,747,406		23,692
Healthcare - Services - 1.04%					LUKOIL PJSC ADR	1,130,225		54,977
Fresenius SE & Co KGaA	886,213		65,480		Seven Generations Energy Ltd ^(a)	1,093,700		23,320
ICON PLC ^(a)	215,752		17,321		TOTAL SA	1,844,710		88,371
		$	82,801				$	306,027
Holding Companies - Diversified - 0.68%					Oil & Gas Services - 0.41%
Wharf Holdings Ltd/The	7,217,000		54,111		Technip SA	489,298		32,475

Home Builders - 2.55%					Pharmaceuticals - 4.79%
Barratt Developments PLC	7,045,236		39,069		Actelion Ltd ^(a)	302,389		43,694
Haseko Corp	1,522,100		14,813		BTG PLC ^(a)	1,804,399		14,520
Iida Group Holdings Co Ltd	914,600		17,679		Daiichi Sankyo Co Ltd	1,080,800		25,971
Persimmon PLC	1,100,626		22,783		Novo Nordisk A/S	2,141,219		76,282
Sekisui House Ltd	3,964,668		65,511		Recordati SpA	802,575		22,696
Taylor Wimpey PLC	25,572,085		44,284		Roche Holding AG	571,281		131,213
		$	204,139		Shire PLC	1,215,776		68,646
Home Furnishings - 0.18%							$	383,022
Howden Joinery Group PLC	3,068,619		14,052		Pipelines - 1.10%
					TransCanada Corp	1,934,727		87,584
Insurance - 4.03%
BB Seguridade Participacoes SA	4,865,700		48,779		Private Equity - 0.77%
Direct Line Insurance Group PLC	531,873		2,250		3i Group PLC	6,091,013		49,929
Fairfax Financial Holdings Ltd	55,071		28,205		Intermediate Capital Group PLC	1,590,573		11,782
Hannover Rueck SE	601,649		67,121				$	61,711
NN Group NV	1,483,010		44,672		Real Estate - 2.53%
PICC Property & Casualty Co Ltd	2,755,775		4,448		Brookfield Asset Management Inc	2,717,902		95,176
Sanlam Ltd	4,355,356		21,096		Cheung Kong Property Holdings Ltd	3,284,840		24,284
SCOR SE	1,034,980		33,517		Deutsche Wohnen AG	945,922		30,905
Swiss Re AG	463,849		43,051		New World Development Co Ltd	16,206,000		20,148
Tokio Marine Holdings Inc	734,750		28,981		Vonovia SE	641,387		22,612
		$	322,120		Wheelock & Co Ltd	1,466,631		9,026
Internet - 3.40%							$	202,151
Alibaba Group Holding Ltd ADR^(a)	742,842		75,540		REITS - 0.60%
Auto Trader Group PLC ^(c)	5,416,842		24,817		Fibra Uno Administracion SA de CV	11,476,960		21,842
NAVER Corp	58,423		43,710		Mirvac Group	16,294,388		25,848
Tencent Holdings Ltd	4,831,332		128,041				$	47,690
		$	272,108		Retail - 4.30%
Investment Companies - 0.41%					Alimentation Couche-Tard Inc	1,640,946		82,433
Investor AB	930,964		33,061		Dollarama Inc	935,516		69,907
					Lojas Renner SA	6,084,500		51,447
Iron & Steel - 0.46%					Pandora A/S	592,129		77,010
Fortescue Metals Group Ltd	4,578,115		19,212		Wal-Mart de Mexico SAB de CV	19,881,878		42,055
Hitachi Metals Ltd	1,402,700		17,533		Zalando SE ^(a),(c)	481,249		21,163
		$	36,745				$	344,015
Leisure Products & Services - 0.23%					Semiconductors - 4.83%
Hero MotoCorp Ltd	373,149		18,730		Infineon Technologies AG	3,193,160		57,430
					Samsung Electronics Co Ltd	83,656		119,655
Machinery - Construction & Mining - 1.24%					Taiwan Semiconductor Manufacturing Co Ltd	21,753,544		130,551
ABB Ltd ^(a)	3,001,659		61,926		Tokyo Electron Ltd	682,800		61,592
Hitachi Ltd	6,912,000		36,847		Ulvac Inc	529,800		16,728
		$	98,773				$	385,956
Machinery - Diversified - 1.15%					Software - 1.69%
Hexagon AB	621,482		21,747		NetEase Inc ADR	57,919		14,885
KION Group AG	280,245		16,933		Open Text Corp	453,100		28,132
Mitsubishi Heavy Industries Ltd	9,216,000		39,425		SAP SE	728,443		64,176
Sumitomo Heavy Industries Ltd	2,603,000		13,703		Ubisoft Entertainment SA ^(a)	831,121		28,279
		$	91,808				$	135,472
Media - 0.39%					Telecommunications - 6.58%
ProSiebenSat.1 Media SE	715,842		30,852		Bharti Infratel Ltd	3,933,146		20,486
					BT Group PLC	8,910,956		40,902
Mining - 1.16%					China Mobile Ltd	5,420,546		62,100
Kinross Gold Corp ^(a)	8,456,900		32,849		China Telecom Corp Ltd	80,315,444		41,408
Teck Resources Ltd	2,760,000		59,591		Deutsche Telekom AG	3,827,353		62,444
		$	92,440		KDDI Corp	2,154,638		65,486
Miscellaneous Manufacturers - 1.07%					Nippon Telegraph & Telephone Corp	1,621,463		71,891
Siemens AG	553,037		62,835		NTT DOCOMO Inc	2,575,900		64,691
Sunny Optical Technology Group Co Ltd	4,637,000		22,614		Orange SA	3,996,757		62,884
		$	85,449		Telekomunikasi Indonesia Persero Tbk PT	105,268,400		33,988
Oil & Gas - 3.83%							$	526,280
Bharat Petroleum Corp Ltd	3,697,790		37,126		Toys, Games & Hobbies - 0.30%
Birchcliff Energy Ltd ^(a)	2,120,600		13,502		Nintendo Co Ltd	98,300		23,696
Canadian Natural Resources Ltd	1,194,300		37,905


Schedule of Investments
Diversified International Fund
October 31, 2016



COMMON STOCKS (continued)		Shares Held	Value (000's)		Portfolio Summary (unaudited)
Transportation - 0.83%					Country	Percent
Canadian National Railway Co		1,050,248	$	66,023	Japan	15.28	%
					Canada	11.15	%
Water - 0.37%					United Kingdom	8.60	%
Veolia Environnement SA		1,368,184		29,891	Germany	8.13	%
					France	7.58	%
TOTAL COMMON STOCKS			$	7,723,824	Switzerland	6.18	%
INVESTMENT COMPANIES - 2.20%		Shares Held	Value (000's)		China	4.84	%
Money Market Funds - 2.20%					Denmark	3.70	%
Goldman Sachs Financial Square Funds -		175,782,620		175,783	India	3.36	%
Government Fund					Korea, Republic Of	3.25	%
					Brazil	3.12	%
TOTAL INVESTMENT COMPANIES			$	175,783	United States	3.06	%
PREFERRED STOCKS - 0.93%		Shares Held	Value (000's)		Ireland	2.68	%
Holding Companies - Diversified - 0.41%					Hong Kong	2.13	%
Itausa - Investimentos Itau SA 0.06%^(d)		11,021,800	$	32,526	Sweden	2.10	%
					Australia	2.08	%
Iron & Steel - 0.52%					Netherlands	2.04	%
Vale SA 0.00%^(a),(d)		6,388,900		41,392	Taiwan, Province Of China	1.86	%
					Russian Federation	1.26	%
TOTAL PREFERRED STOCKS			$	73,918	South Africa	1.16	%
					Italy	1.01	%
Total Investments			$	7,973,525
					Mexico	1.00	%
Other Assets and Liabilities - 0.23%			$	18,540
					Spain	0.92	%
TOTAL NET ASSETS - 100.00%			$	7,992,065
					Indonesia	0.69	%
					Finland	0.58	%
(a)	Non-Income Producing Security				Austria	0.50	%
(b)	Fair value of these investments is determined in good faith by the Manager				Peru	0.38	%
	under procedures established and periodically reviewed by the Board of				Thailand	0.33	%
	Directors. At the end of the period, the fair value of these securities totaled				Portugal	0.30	%
	$19,981 or 0.25% of net assets.				Norway	0.29	%
(c)	Security exempt from registration under Rule 144A of the Securities Act of				Colombia	0.20	%
	1933. These securities may be resold in transactions exempt from				Bermuda	0.01	%
	registration, normally to qualified institutional buyers. At the end of the				Other Assets and Liabilities	0.23	%
	period, the value of these securities totaled $100,135 or 1.25% of net				TOTAL NET ASSETS	100.00	%
	assets.
(d)	Variable Rate. Rate shown is in effect at October 31, 2016.


COMMON STOCKS - 98.61%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 1.45%					Insurance - 4.58%
Boeing Co/The	354,849	$	50,541		Allstate Corp/The	828,046	$	56,224
Lockheed Martin Corp	15,987		3,939		Chubb Ltd	1,127,832		143,235
Raytheon Co	174,976		23,903		MetLife Inc	402,699		18,911
		$	78,383		Swiss Re AG ADR	1,235,389		28,667
Airlines - 0.91%							$	247,037
Delta Air Lines Inc	1,176,453		49,140		Machinery - Diversified - 2.25%
					Deere & Co	1,374,028		121,327
Apparel - 0.98%
VF Corp	976,520		52,937		Media - 0.35%
					Walt Disney Co/The	201,344		18,663
Automobile Manufacturers - 1.48%
PACCAR Inc	1,453,126		79,806		Miscellaneous Manufacturers - 2.22%
					3M Co	190,703		31,523
Automobile Parts & Equipment - 1.46%					Parker-Hannifin Corp	717,750		88,104
Adient plc ^(a)	53,824		2,450				$	119,627
Autoliv Inc	786,301		76,098		Oil & Gas - 10.42%
		$	78,548		Chevron Corp	660,554		69,193
Banks - 9.52%					Cimarex Energy Co	625,553		80,778
Bank of Nova Scotia/The	1,120,316		60,228		Exxon Mobil Corp	956,201		79,671
Grupo Financiero Santander Mexico SAB de	2,314,867		20,949		HollyFrontier Corp	487,830		12,171
CV ADR					Marathon Petroleum Corp	2,523,453		109,997
JPMorgan Chase & Co	1,804,877		125,006		Occidental Petroleum Corp	1,467,253		106,977
M&T Bank Corp	272,533		33,448		Royal Dutch Shell PLC - B shares ADR	1,970,495		103,077
PNC Financial Services Group Inc/The	1,118,564		106,935				$	561,864
US Bancorp	1,884,294		84,341		Pharmaceuticals - 7.52%
Wells Fargo & Co	1,791,713		82,437		Johnson & Johnson	599,606		69,548
		$	513,344		Merck & Co Inc	1,369,609		80,424
Beverages - 1.07%					Novartis AG ADR	736,460		52,303
Coca-Cola Co/The	1,147,924		48,672		Pfizer Inc	2,093,403		66,382
Dr Pepper Snapple Group Inc	104,325		9,159		Roche Holding AG ADR	2,800,865		80,315
		$	57,831		Teva Pharmaceutical Industries Ltd ADR	1,314,723		56,191
Chemicals - 1.91%							$	405,163
Air Products & Chemicals Inc	349,930		46,688		Pipelines - 2.12%
EI du Pont de Nemours & Co	512,983		35,288		Enterprise Products Partners LP	4,520,262		114,091
PPG Industries Inc	226,146		21,061
		$	103,037		Private Equity - 1.33%
Computers - 3.64%					KKR & Co LP	5,056,684		71,754
Accenture PLC - Class A	170,728		19,845
Apple Inc	1,368,978		155,434		REITS - 4.98%
International Business Machines Corp	136,208		20,934		AGNC Investment Corp	1,983,709		39,793
		$	196,213		Annaly Capital Management Inc	5,482,816		56,802
Diversified Financial Services - 6.94%					Digital Realty Trust Inc	914,768		85,467
BlackRock Inc	331,957		113,277		Host Hotels & Resorts Inc	2,818,759		43,634
Discover Financial Services	2,356,290		132,730		Simon Property Group Inc	229,849		42,743
FNF Group	3,572,806		128,299				$	268,439
		$	374,306		Retail - 2.66%
Electric - 5.46%					Costco Wholesale Corp	269,156		39,800
Eversource Energy	1,350,349		74,350		Genuine Parts Co	422,116		38,240
NextEra Energy Inc	514,112		65,806		Starbucks Corp	1,168,669		62,021
WEC Energy Group Inc	1,271,402		75,928		Tiffany & Co	41,300		3,032
Xcel Energy Inc	1,879,455		78,092				$	143,093
		$	294,176		Semiconductors - 6.32%
Electrical Components & Equipment - 0.73%					Applied Materials Inc	2,815,723		81,881
Emerson Electric Co	778,518		39,455		Maxim Integrated Products Inc	1,488,534		58,990
					Microchip Technology Inc	2,098,624		127,072
Electronics - 1.39%					Taiwan Semiconductor Manufacturing Co Ltd	2,338,611		72,731
Garmin Ltd	50,391		2,437		ADR
Honeywell International Inc	462,742		50,753				$	340,674
Johnson Controls International plc	538,235		21,702		Software - 1.67%
		$	74,892		Fidelity National Information Services Inc	448,355		33,143
Food - 3.38%					Microsoft Corp	952,109		57,050
Kraft Heinz Co/The	871,816		77,548				$	90,193
Kroger Co/The	3,375,663		104,578		Telecommunications - 2.70%
		$	182,126		BCE Inc	1,655,209		75,213
Gas - 1.19%					Verizon Communications Inc	1,457,218		70,092
Sempra Energy	598,724		64,123				$	145,305
					Toys, Games & Hobbies - 2.34%
Healthcare - Products - 3.69%					Hasbro Inc	1,509,035		125,869
Abbott Laboratories	1,550,185		60,829
Becton Dickinson and Co	333,992		56,081		Transportation - 1.95%
Medtronic PLC	998,400		81,889		Union Pacific Corp	778,215		68,623
		$	198,799


Schedule of Investments
Finisterre Unconstrained Emerging Markets Bond Fund
October 31, 2016



			Principal						Principal
	BONDS- 93.47	%	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
	Banks- 7.71	%					Sovereign (continued)
	Banque Centrale de Tunisie International						Hungary Government International Bond
	Bond							5.75%, 11/22/2023	$	1,150	$	1,342
	5.75%, 01/30/2025		$	500	$	482	Indonesia Treasury Bond
	Letras del Banco Central de la Republica							7.88%, 04/15/2019	IDR	5,500,000		433
	Argentina							8.38%, 03/15/2024		6,500,000		529
	0.00%, 01/18/2017^(a)		ARS	6,000		375	Iraq International Bond
	Sberbank of Russia Via SB Capital SA							5.80%, 01/15/2028^(h)	$	400		322
	5.25%, 05/23/2023		$	200		196	KazAgro National Management Holding JSC
	Turkiye Halk Bankasi AS							3.26%, 05/22/2019	EUR	700		759
	4.88%, 07/19/2017			500		504	Lebanon Government International Bond
	Turkiye Is Bankasi							5.45%, 11/28/2019	$	750		739
	5.50%, 04/21/2022^(b)			400		399	Peruvian Government International Bond
				$		1,956		6.35%, 08/12/2028^(b)	PEN	1,250		384
	Building Materials - 2.19%						Saudi Government International Bond
								3.25%, 10/26/2026^(b)	$	500		493
	St Marys Cement Inc Canada
	5.75%, 01/28/2027^(b)			550		555		4.50%, 10/26/2046^(b)		600		590
							Serbia International Bond
	Chemicals - 5.86%							4.88%, 02/25/2020		800		828
	Equate Petrochemical BV							5.88%, 12/03/2018		550		582
	3.00%, 03/03/2022^(b),(c),(d)			400		393	Turkey Government International Bond
	4.25%, 11/03/2026^(b),(c)			500		496		4.88%, 10/09/2026		600		598
	Mexichem SAB de CV							5.13%, 03/25/2022		525		542
	5.88%, 09/17/2044^(b)			200		194				$		10,920
	OCP SA						Supranational Bank - 3.50%
	4.50%, 10/22/2025			400		403	African Export-Import Bank
				$		1,486		3.88%, 06/04/2018		250		253
	Diversified Financial Services - 1.04%						Banque Ouest Africaine de Developpement
	Dragon Aviation Finance Luxembourg SA							5.50%, 05/06/2021		300		318
	4.00%, 11/28/2022^(e)			266		265	Black Sea Trade & Development Bank
								4.88%, 05/06/2021		300		318
	Entertainment - 2.05%									$		889
	Codere Finance 2 Luxembourg SA						Telecommunications - 8.56%
	9.00%, PIK 9.00%, 06/30/2021^(f)			508		520	Digicel Group Ltd
								7.13%, 04/01/2022		300		238
	Media- 1.99	%					Digicel Ltd
	Globo Comunicacao e Participacoes SA							6.00%, 04/15/2021		500		447
	4.84%, 06/08/2025^(d)			500		505	GTH Finance BV
								6.25%, 04/26/2020		750		783
	Oil & Gas - 12.24%						MTN Mauritius Investment Ltd
	Delek & Avner Tamar Bond Ltd							5.37%, 02/13/2022^(b)		700		705
	5.41%, 12/30/2025^(b)			370		394				$		2,173
	Genel Energy Finance PLC						TOTAL BONDS			$		23,726
	7.50%, 05/14/2019^(b)			600		498			Principal
	Odebrecht Offshore Drilling Finance Ltd						CONVERTIBLE BONDS - 1.58%		Amount (000's) Value (000's)
	6.75%, 10/01/2023			856		173	Investment Companies - 1.58%
	Petrobras Global Finance BV						Aabar Investments PJSC
	8.38%, 05/23/2021			800		885		1.00%, 03/27/2022	EUR	500		401
	Petroleos de Venezuela SA
	5.38%, 04/12/2027			600		220	TOTAL CONVERTIBLE BONDS			$		401
	Tengizchevroil Finance Co International Ltd						Total Investments			$		24,127
	4.00%, 08/15/2026^(b)			300		289
							Other Assets and Liabilities - 4.95%			$		1,257
	Zhaikmunai LLP						TOTAL NET ASSETS - 100.00%			$		25,384
	6.38%, 02/14/2019			700		649
				$		3,108
	Real Estate - 2.90%						(a)	Non-Income Producing Security
	MAF Global Securities Ltd						(b)	Security exempt from registration under Rule 144A of the Securities Act of
	7.13%, 10/29/2049^(d),(g)			700		737		1933. These securities may be resold in transactions exempt from
								registration, normally to qualified institutional buyers. At the end of the
	REITS- 2.41	%						period, the value of these securities totaled $5,390 or 21.23% of net assets.
	Trust F/1401						(c)	Security purchased on a when-issued basis.
	6.95%, 01/30/2044			600		612	(d)	Variable Rate. Rate shown is in effect at October 31, 2016.
							(e)	Fair value of these investments is determined in good faith by the Manager
	Sovereign - 43.02%							under procedures established and periodically reviewed by the Board of
	Argentine Bonos del Tesoro							Directors. At the end of the period, the fair value of these securities totaled
	16.00%, 10/17/2023		ARS	5,682		377		$265 or 1.04% of net assets.
	Brazil Minas SPE via State of Minas Gerais						(f)	Payment in kind; the issuer has the option of paying additional securities
	5.33%, 02/15/2028^(d)		$	900		882		in lieu of cash.
	Brazil Notas do Tesouro Nacional Serie F						(g)	Perpetual security. Perpetual securities pay an indefinite stream of
	10.00%, 01/01/2025		BRL	3,000		878		interest, but they may be called by the issuer at an earlier date.
	Gabon Government International Bond						(h)	Security is Illiquid. At the end of the period, the value of these securities
	6.38%, 12/12/2024		$	700		642		totaled $322 or 1.27% of net assets.


Schedule of Investments
Finisterre Unconstrained Emerging Markets Bond Fund
October 31, 2016



Portfolio Summary (unaudited)
Country				Percent
Netherlands				10.07		%
Turkey				8.06		%
Cayman Islands				7.05		%
Kazakhstan				5.55		%
Serbia				5.55		%
Brazil				5.45		%
Hungary				5.29		%
Saudi Arabia				4.27		%
Luxembourg				3.86		%
Bermuda				3.84		%
Indonesia				3.78		%
Supranational				3.50		%
Mexico				3.18		%
Argentina				2.97		%
Lebanon				2.91		%
Mauritius				2.78		%
Gabon				2.53		%
Canada				2.19		%
United Kingdom				1.96		%
Tunisia				1.90		%
Morocco				1.59		%
United Arab Emirates				1.58		%
Israel				1.55		%
Peru				1.51		%
Iraq				1.27		%
Venezuela				0.86		%
Other Assets and Liabilities				4.95		%
TOTAL NET ASSETS				100.00		%

Credit Default Swaps

Buy Protection
		Implied
		Credit Spread (Pay)/								Upfront			Unrealized
		as of October Receive			Expiration			Notional		Premiums			Appreciation/			Fair Value
Counterparty (Issuer)	Reference Entity	31, 2016	(a)	Fixed Rate	Date			Amount		Paid/(Received)			(Depreciation)			Asset	Liability
Citigroup Inc	CDX.EM.25	N/A		(1.00)%	06/20/2021		$	1,300	$	85		$	(6	)	$	79	$	—
Citigroup Inc	Columbia	1.74	%	(1.00)%	12/20/2021			1,300		45			2			47		—
	Government
	International Bond
Citigroup Inc	Turkey Government	2.53	%	(1.00)%	12/20/2021			900		65			—			65		—
	International Bond
HSBC Securities Inc	Indonesia	1.53	%	(1.00)%	12/20/2021			2,000		51			—			51		—
	Government
	International Bond
Total								$		246		$	(4	)	$	242	$	—

Sell Protection
		Implied
		Credit Spread (Pay)/								Upfront			Unrealized
		as of October 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
Citigroup Inc	Argentine Republic	3.71	%	5.00%	06/20/2021		$	700	$	33		$	5		$	38	$	—
	Government
	International Bond
HSBC Securities Inc	China Government	1.09	%	1.00%	12/20/2021			1,000		(4	)		(1	)		—		(5	)
	International Bond
HSBC Securities Inc	Croatia Government	1.86	%	1.00%	06/20/2021			1,000		(55	)		17			—		(38	)
	International Bond
HSBC Securities Inc	MARKIT ITRX	N/A		1.00%	12/20/2021			1,000		(10	)		3			—		(7	)
	ASIAXJ IG 12/21
Total								$		(36	)	$	24		$	38	$	(50	)

(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 $3,700.

Schedule of Investments
Finisterre Unconstrained Emerging Markets Bond Fund
October 31, 2016

(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
Stifel, Nicolaus & Company	11/18/2016	INR	42,500,000	$	633	$	636	$	3		$	—
Stifel, Nicolaus & Company	11/18/2016	MXN	11,500,000		613		607		—			(6	)
Stifel, Nicolaus & Company	11/18/2016	MYR	3,500,000		835		834		—			(1	)
Stifel, Nicolaus & Company	11/21/2016	PEN	2,000,000		589		594		5			—
Total								$	8		$	(7	)
								Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For		Fair Value		Asset			Liability
Bank of New York Mellon	11/25/2016	EUR	1,070,203	$	1,166	$	1,176	$	—		$	(10	)
Stifel, Nicolaus & Company	11/18/2016	MXN	11,500,000		609		607		2			—
Stifel, Nicolaus & Company	11/18/2016	MYR	3,500,000		832		834		—			(2	)
Stifel, Nicolaus & Company	11/18/2016	RUB	60,000,000		954		943		11			—
Stifel, Nicolaus & Company	11/18/2016	TRY	1,200,000		387		386		1			—
Total								$	14		$	(12	)

Amounts in thousands except contracts


Futures Contracts

												Unrealized
Type	Long/Short		Contracts		Notional Value				Fair Value			Appreciation/(Depreciation)
US 10 Year Note; December 2016		Short	24	$	3,131		$		3,111	$		20
US Long Bond; December 2016		Short	5		821				814			7
Total									$			27

Amounts in thousands except contracts


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



COMMON STOCKS - 20.61%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.07%					Building Materials (continued)
Multiplus SA	171,500	$	2,334		Universal Forest Products Inc	6,035	$	519
Omnicom Group Inc	67,526		5,390				$	9,769
		$	7,724		Chemicals - 0.08%
Aerospace & Defense - 0.07%					Cabot Corp	13,624		710
BAE Systems PLC	870,147		5,766		Denka Co Ltd	161,000		731
United Technologies Corp	22,195		2,268		DIC Corp	34,900		1,057
		$	8,034		Huntsman Corp	93,702		1,588
Agriculture - 0.26%					Lenzing AG	12,891		1,680
Altria Group Inc	52,266		3,456		Sanyo Chemical Industries Ltd	40,300		1,822
British American Tobacco PLC	132,633		7,601		Tosoh Corp	244,000		1,594
Bunge Ltd	13,304		825				$	9,182
Imperial Brands PLC	134,419		6,502		Coal - 0.01%
Philip Morris International Inc ^(a)	107,659		10,383		China Shenhua Energy Co Ltd	478,500		992
		$	28,767		Foresight Energy LLC / Foresight Energy	66,260		—
Apparel - 0.05%					Finance Corp - Warrants ^(b),(c),(d)
Burberry Group PLC	286,055		5,159				$	992
					Commercial Services - 0.71%
Automobile Manufacturers - 0.07%					Abertis Infraestructuras SA	1,196,046		17,729
Fuji Heavy Industries Ltd	108,800		4,251		Ashtead Group PLC	62,936		981
Honda Motor Co Ltd	101,100		3,025		Atlantia SpA	321,349		7,868
New Flyer Industries Inc	22,100		618		CCR SA	1,193,800		6,500
		$	7,894		Cengage Learning Holdings II Inc ^(e)	34,465		672
Automobile Parts & Equipment - 0.09%					COSCO SHIPPING Ports Ltd	7,398,000		7,334
Adient plc ^(b)	13,261		603		Jiangsu Expressway Co Ltd	4,682,000		6,366
Allison Transmission Holdings Inc	44,744		1,311		KAR Auction Services Inc	32,958		1,403
Georg Fischer AG	1,593		1,412		Macquarie Infrastructure Corp	17,220		1,409
Goodyear Tire & Rubber Co/The	49,608		1,440		Sabre Corp	15,226		393
JTEKT Corp	95,400		1,412		Transurban Group	3,626,467		28,615
Mando Corp	1,875		438				$	79,270
Tong Yang Industry Co Ltd	856,000		1,992		Computers - 0.10%
TS Tech Co Ltd	18,200		488		Amdocs Ltd	11,649		681
Xinyi Glass Holdings Ltd ^(b)	1,534,000		1,319		HP Inc	697,300		10,104
		$	10,415				$	10,785
Banks - 1.26%					Cosmetics & Personal Care - 0.03%
Aareal Bank AG	43,097		1,559		Pola Orbis Holdings Inc	4,200		350
Australia & New Zealand Banking Group Ltd	263,762		5,569		Procter & Gamble Co/The	32,235		2,798
Bank of Montreal	88,600		5,638				$	3,148
Bank of Nova Scotia/The	166,000		8,921		Distribution & Wholesale - 0.15%
Bank Pembangunan Daerah Jawa Barat Dan	5,489,500		669		ITOCHU Corp	539,700		6,816
Banten Tbk PT					Mitsubishi Corp	318,800		6,938
Central Pacific Financial Corp	62,022		1,590		Sumitomo Corp	296,600		3,410
China Merchants Bank Co Ltd	405,500		986				$	17,164
CIMB Group Holdings Bhd	520,400		623		Diversified Financial Services - 0.03%
Danske Bank A/S	55,700		1,718		Moelis & Co	28,120		714
Fifth Third Bancorp	335,837		7,308		Tai Fook Securities Group Ltd	1,534,000		981
Great Western Bancorp Inc	22,155		714		Tokyo Century Corp	16,800		592
IBERIABANK Corp	21,782		1,430		Urban & Civic PLC	401,938		971
Industrial Bank of Korea	162,759		1,874				$	3,258
ING Groep NV	287,250		3,771		Electric - 3.11%
JPMorgan Chase & Co ^(a)	301,096		20,854		Alliant Energy Corp	173,267		6,593
National Australia Bank Ltd	397,256		8,433		Avangrid Inc	98,900		3,898
National Bank of Canada	130,100		4,644		Avista Corp	31,386		1,299
Natixis SA	133,210		674		CMS Energy Corp ^(a)	223,600		9,425
PacWest Bancorp	34,196		1,484		Dominion Resources Inc/VA ^(a)	413,733		31,112
Resona Holdings Inc	1,034,600		4,586		DTE Energy Co ^(a)	225,300		21,631
Sumitomo Mitsui Financial Group Inc	111,200		3,856		Edison International	217,800		16,004
Sumitomo Mitsui Trust Holdings Inc	238,700		8,054		El Paso Electric Co	116,930		5,402
SunTrust Banks Inc	275,027		12,439		Enel SpA	873,844		3,757
Toronto-Dominion Bank/The	129,609		5,881		Entergy Corp	165,277		12,178
Towne Bank/Portsmouth VA	35,661		884		Eversource Energy ^(a)	486,552		26,790
Union Bankshares Corp	27,982		782		Exelon Corp	342,630		11,673
Wells Fargo & Co ^(a)	561,279		25,824		Huadian Fuxin Energy Corp Ltd	1,670,000		387
		$	140,765		Iberdrola SA	2,893,427		19,691
Biotechnology - 0.27%					Infraestructura Energetica Nova SAB de CV	170,000		751
Amgen Inc	74,504		10,517		Iren SpA	338,711		608
Gilead Sciences Inc	274,111		20,183		NextEra Energy Inc ^(a)	311,169		39,830
		$	30,700		Origin Energy Ltd	288,095		1,161
Building Materials - 0.09%					PG&E Corp	610,555		37,928
Asahi Glass Co Ltd	618,000		4,322		Pinnacle West Capital Corp ^(a)	30,100		2,292
CSR Ltd	1,005,919		2,793		Portland General Electric Co	167,187		7,296
Kingspan Group PLC	14,789		359		Power Assets Holdings Ltd	777,500		7,297
Masco Corp	34,731		1,073		SCANA Corp ^(a)	295,000		21,641
Metro Performance Glass Ltd	453,472		703		Southern Co/The	360,000		18,565


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Electric (continued)					Home Builders - 0.02%
SSE PLC	898,746	$	17,474		Bellway PLC	15,682	$	454
WEC Energy Group Inc ^(a)	135,000		8,062		DR Horton Inc	40,533		1,169
Xcel Energy Inc	380,608		15,814		Galliford Try PLC	31,770		476
		$	348,559				$	2,099
Electrical Components & Equipment - 0.09%					Home Furnishings - 0.00%
China High Speed Transmission Equipment	1,995,000		2,068		Targus Group International Inc ^(b),(c),(d)	75,881		120
GroupCoLtd
Kung Long Batteries Industrial Co Ltd	239,000		1,119		Insurance - 0.48%
OSRAM Licht AG	112,594		6,395		American Financial Group Inc/OH	9,281		691
		$	9,582		Beazley PLC	127,870		569
Electronics - 0.14%					Challenger Ltd/Australia	372,657		3,042
Alps Electric Co Ltd	39,900		957		Direct Line Insurance Group PLC	88,166		373
Elite Material Co Ltd	1,083,000		3,015		Hannover Rueck SE	24,175		2,697
FLEXium Interconnect Inc	157,637		448		Muenchener Rueckversicherungs-Gesellschaft	55,085		10,695
Hu Lane Associate Inc	255,000		1,124		AG in Muenchen
Johnson Controls International plc	132,609		5,347		NN Group NV	178,152		5,367
Mycronic AB	45,850		479		Prudential Financial Inc	141,229		11,975
Nippon Electric Glass Co Ltd	710,000		3,862		SCOR SE	17,313		561
		$	15,232		Swiss Re AG	141,955		13,175
Energy - Alternate Sources - 0.14%					Travelers Cos Inc/The	39,275		4,249
NextEra Energy Partners LP	393,433		10,760				$	53,394
Pattern Energy Group Inc	235,600		5,266		Internet - 0.02%
		$	16,026		Symantec Corp	85,005		2,128
Engineering & Construction - 0.18%
Aena SA ^(f)	15,871		2,326		Investment Companies - 0.00%
Aeroports de Paris	6,569		664		SmartGroup Corp Ltd	133,733		607
Argan Inc	12,027		684
Eiffage SA	19,680		1,457		Iron & Steel - 0.00%
Fraport AG Frankfurt Airport Services	118,526		7,036		POSCO	2,081		433
Worldwide
Grupo Aeroportuario del Pacifico SAB de CV	442,103		4,271		Machinery - Construction & Mining - 0.09%
Grupo Aeroportuario del Sureste SAB de CV	41,355		658		ABB Ltd ^(b)	479,444		9,891
Japan Airport Terminal Co Ltd	59,900		2,299		Astec Industries Inc	11,791		653
Kyudenko Corp	36,700		1,182				$	10,544
		$	20,577		Machinery - Diversified - 0.01%
Entertainment - 0.01%					Ebara Corp	44,600		1,324
AMC Entertainment Holdings Inc	13,140		413
Regal Entertainment Group	22,019		474		Media - 0.38%
					Charter Communications Inc ^(a),(b)	82,324		20,572
Vail Resorts Inc	3,107		495
		$	1,382		Comcast Corp - Class A	258,000		15,949
Forest Products & Paper - 0.08%					Time Warner Inc	67,579		6,014
International Paper Co	105,240		4,739				$	42,535
UPM-Kymmene OYJ	161,323		3,753		Mining - 0.03%
		$	8,492		Boliden AB	24,223		561
Gas - 0.89%					HudBay Minerals Inc	204,700		862
					Mirabela Nickel Ltd ^(b),(c),(d)	26,307,311		—
Atmos Energy Corp	85,220		6,340
CenterPoint Energy Inc	209,041		4,766		Vedanta Ltd ADR	139,014		1,677
National Grid PLC ADR ^(a)	73,100		4,782				$	3,100
National Grid PLC	1,791,361		23,302		Miscellaneous Manufacturers - 0.20%
New Jersey Resources Corp	250,000		8,487		AO Smith Corp	18,688		844
NiSource Inc ^(a)	347,000		8,071		Eaton Corp PLC	73,303		4,674
Rubis SCA	60,785		5,543		General Electric Co	85,899		2,500
Sempra Energy ^(a)	203,500		21,795		Hill & Smith Holdings PLC	33,357		410
Snam SpA	668,348		3,521		Siemens AG	111,397		12,657
South Jersey Industries Inc	15,500		460		Trinseo SA	25,602		1,343
Tokyo Gas Co Ltd	1,148,000		5,209				$	22,428
UGI Corp	156,231		7,232		Oil & Gas - 1.09%
		$	99,508		BP PLC	760,960		4,499
Hand & Machine Tools - 0.02%					Chevron Corp	116,312		12,184
Basso Industry Corp	815,900		2,194		China Petroleum & Chemical Corp	5,772,000		4,174
					Comstock Resources Inc - Warrants ^(b),(c),(d)	28,875		282
Healthcare - Products - 0.00%					EOG Resources Inc	30,100		2,722
					Exxon Mobil Corp ^(a)	256,182		21,345
Fisher & Paykel Healthcare Corp Ltd	86,284		546
					Helmerich & Payne Inc	19,100		1,205
Healthcare - Services - 0.03%					Marathon Petroleum Corp	43,000		1,874
HealthSouth Corp	39,075		1,569		Murphy Oil Corp	44,549		1,152
Quest Diagnostics Inc	16,590		1,351		Pioneer Natural Resources Co	17,200		3,079
					Royal Dutch Shell PLC ADR^(a)	465,000		23,162
		$	2,920
Holding Companies - Diversified - 0.16%					Royal Dutch Shell PLC - A Shares	70,000		1,743
China Merchants Port Holdings Co Ltd	4,430,000		11,453		Royal Dutch Shell PLC - B Shares	284,937		7,349
					SandRidge Energy Inc ^(b),(c),(d)	7,975,000		—
Wharf Holdings Ltd/The	803,000		6,021
					SandRidge Energy Inc ^(b),(c),(d)	3,450,000		—
		$	17,474		SandRidge Energy Inc ^(b)	84,205		1,939


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Oil & Gas (continued)					REITS (continued)
SandRidge Energy Inc - Warrants ^(b)	2,838	$	13		AIMS AMP Capital Industrial REIT	3,159,750	$	3,136
SandRidge Energy Inc - Warrants ^(b),(d)	6,742		33		Alexandria Real Estate Equities Inc	61,620		6,643
Tesoro Corp	93,972		7,985		Altarea SCA	20,835		3,981
Titan Energy LLC ^(b)	133,081		3,893		American Tower Corp	56,962		6,675
TORC Oil & Gas Ltd	126,600		716		Apartment Investment & Management Co	232,890		10,263
TOTAL SA	136,874		6,557		Armada Hoffler Properties Inc	76,380		1,026
Valero Energy Corp	130,851		7,752		Blackstone Mortgage Trust Inc	47,799		1,444
Western Refining Inc	252,334		7,280		Brandywine Realty Trust	160,000		2,480
Whitecap Resources Inc	141,540		1,131		Care Capital Properties Inc	190,000		5,048
		$	122,069		Champion REIT	3,500,000		1,988
Oil & Gas Services - 0.04%					City Office REIT Inc	395,000		4,961
Schlumberger Ltd	53,639		4,196		Colony Starwood Homes	100,000		2,901
					Cominar Real Estate Investment Trust	47,400		525
Packaging & Containers - 0.08%					Communications Sales & Leasing Inc	265,000		7,534
Packaging Corp of America	57,525		4,746		Corporate Office Properties Trust	45,252		1,208
RPC Group PLC	128,929		1,495		Crown Castle International Corp ^(a)	584,730		53,205
Sonoco Products Co	51,820		2,606		CubeSmart ^(a)	385,040		10,038
		$	8,847		CYS Investments Inc ^(a)	643,285		5,545
Pharmaceuticals - 0.80%					Dexus Property Group	1,535,000		10,427
AbbVie Inc ^(a)	315,109		17,577		Digital Realty Trust Inc	10,252		958
Eli Lilly & Co	44,003		3,249		Duke Realty Corp	248,380		6,495
GlaxoSmithKline PLC	375,495		7,418		Education Realty Trust Inc	69,000		2,939
					EPR Properties ^(a)	60,164		4,375
Indivior PLC	68,583		263
Johnson & Johnson	41,866		4,856		Equinix Inc	21,765		7,776
					Equity One Inc ^(a)	300,872		8,575
Merck & Co Inc	462,122		27,136
Pfizer Inc ^(a)	870,195		27,594		Essex Property Trust Inc ^(a)	66,859		14,314
Recordati SpA	37,462		1,059		Eurocommercial Properties NV	39,000		1,659
		$	89,152		Fortune Real Estate Investment Trust	1,665,000		2,017
					Frasers Logistics & Industrial Trust ^(b)	6,234,105		4,323
Pipelines - 0.95%
Enbridge Inc	298,644		12,896		General Growth Properties Inc	286,930		7,159
Enterprise Products Partners LP ^(a)	606,627		15,311		Goodman Group	1,100,000		5,670
Kinder Morgan Inc/DE	966,749		19,751		Granite Real Estate Investment Trust	145,000		4,562
ONEOK Inc	98,284		4,760		Highwoods Properties Inc	19,817		984
Pembina Pipeline Corp	232,700		7,150		Hoshino Resorts REIT Inc	410		2,404
					Hospitality Properties Trust ^(a)	139,910		3,828
Plains GP Holdings LP	354,724		4,455
Spectra Energy Corp	246,841		10,320		Hospitality Property Fund Ltd	200,000		194
TransCanada Corp	331,946		15,027		Industrial & Infrastructure Fund Investment	1,140		6,002
Williams Cos Inc/The ^(a)	465,000		13,578		Corp
Williams Partners LP	95,000		3,403		Investa Office Fund	1,100,000		3,543
		$	106,651		Japan Hotel REIT Investment Corp	6,503		4,387
					Japan Logistics Fund Inc	2,750		5,981
Private Equity - 0.02%
AURELIUS Equity Opportunities SE & Co	26,529		1,584		Japan Rental Housing Investments Inc	3,050		2,360
KGaA					Kenedix Retail REIT Corp	1,917		4,627
Intermediate Capital Group PLC	136,169		1,009		Kilroy Realty Corp	99,000		7,111
					Klepierre	209,006		8,542
		$	2,593		LibertyPropertyTrust ^(a)	237,200		9,590
Real Estate - 0.94%
ADO Properties SA ^(f)	278,766		10,190		Link REIT	393,000		2,796
					LondonMetric Property PLC	1,690,000		3,083
Aeon Mall Co Ltd	210,000		3,119
					Mapletree Commercial Trust	1,812,701		1,993
Atrium European Real Estate Ltd	227,000		971
					MCUBS MidCity Investment Corp	243		790
Beijing Capital Land Ltd	988,000		379
BUWOG AG ^(b)	55,172		1,334		Merlin Properties Socimi SA	536,666		6,021
					Mid-America Apartment Communities Inc	9,755		905
Citycon OYJ	2,255,857		5,286
					Mirvac Group	6,183,543		9,809
Croesus Retail Trust	10,116,736		6,256
					Monmouth Real Estate Investment Corp	97,936		1,339
Deutsche Wohnen AG	277,000		9,050
					National Storage Affiliates Trust	410,414		8,036
Fabege AB	220,900		3,731
					New Residential Investment Corp	110,486		1,542
Inmobiliaria Colonial SA	400,000		2,821
					NewRiver REIT PLC	1,386,464		5,272
K Wah International Holdings Ltd	1,640,000		887
					Nomura Real Estate Master Fund Inc	3,256		5,285
Kerry Properties Ltd	479,500		1,518
					Orix JREIT Inc	457		783
KWG Property Holding Ltd	862,500		499
					Physicians Realty Trust	260,061		5,141
Mitsubishi Estate Co Ltd	278,000		5,525
					PLA Administradora Industrial S de RL de CV	4,820,000		7,995
Mitsui Fudosan Co Ltd	574,400		13,081		(b)

New World Development Co Ltd	6,033,000		7,501		Prologis Inc ^(a)	273,250		14,253
RHT Health Trust	3,204,300		1,985		Prologis Property Mexico SA de CV ^(b)	1,300,000		2,187
Sponda OYJ	655,000		3,101
					Pure Industrial Real Estate Trust	244,900		982
Sumitomo Realty & Development Co Ltd	230,000		6,046
					QTS Realty Trust Inc	18,930		870
Sun Hung Kai Properties Ltd	887,000		13,208		Sabra Health Care REIT Inc ^(a)	344,280		8,022
TLG Immobilien AG	130,000		2,726
					Saul Centers Inc	48,800		2,951
Tokyo Tatemono Co Ltd	170,000		2,159
					Scentre Group	1,000,000		3,201
UNITE Group PLC/The	260,000		1,761
					Secure Income REIT Plc	232,138		884
Wheelock & Co Ltd	282,000		1,735
					Sekisui House Reit Inc	3,313		4,479
		$	104,869		Senior Housing Properties Trust	450,000		9,572
REITS - 4.48%					Simon Property Group Inc ^(a)	167,357		31,122
Agree Realty Corp	58,961		2,851		SL Green Realty Corp	85,000		8,349


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
REITS (continued)					Transportation (continued)
Spirit Realty Capital Inc	970,000	$	11,553		Sankyu Inc		237,000	$	1,396
Spring Real Estate Investment Trust	14,436,000		6,084		Union Pacific Corp ^(a)		306,792		27,053
STAG Industrial Inc	380,183		8,771					$	73,974
Stockland	1,541,000		5,175		Water- 0.26	%
STORE Capital Corp	311,446		8,499		American Water Works Co Inc ^(a)		223,000		16,511
Sun Communities Inc	170,849		13,143		United Utilities Group PLC		687,119		7,898
Sunstone Hotel Investors Inc	415,000		5,212		Veolia Environnement SA		210,858		4,607
Vastned Retail NV	76,000		2,924					$	29,016
Viva Energy REIT ^(b)	1,778,960		3,056		TOTAL COMMON STOCKS			$	2,307,139
Viva Industrial Trust	2,780,900		1,595		INVESTMENT COMPANIES - 3.35%		Shares Held		Value(000	's)
Welltower Inc	82,046		5,623		Money Market Funds - 3.35%
Wereldhave NV	169,920		7,606		BlackRock Liquidity Funds FedFund Portfolio		75,138,746		75,139
WPT Industrial Real Estate Investment Trust	200,000		2,358		Morgan Stanley Institutional Liquidity Funds -		299,401,520		299,401
		$	501,515		Government Portfolio
Retail - 0.28%								$	374,540
Big 5 Sporting Goods Corp	40,987		635		TOTAL INVESTMENT COMPANIES			$	374,540
CVS Health Corp	171,206		14,399		CONVERTIBLE PREFERRED STOCKS -
JB Hi-Fi Ltd	61,000		1,315		0.04	%	Shares Held		Value(000	's)
Man Wah Holdings Ltd	325,600		216
					Banks- 0.04	%
Wal-Mart Stores Inc	213,752		14,967		Wells Fargo & Co 7.50%^(g)		3,902	$	5,092
		$	31,532
Savings & Loans - 0.02%					TOTAL CONVERTIBLE PREFERRED STOCKS			$	5,092
Banc of California Inc	87,440		1,163
					PREFERRED STOCKS - 1.73%		Shares Held		Value(000	's)
Provident Financial Services Inc	53,726		1,219
					Banks- 0.69	%
		$	2,382		AgriBank FCB 6.88%^(g),(h)		33,000		3,550
Semiconductors - 0.43%					Bank of America Corp 6.63%^(g)		18,146		477
BE Semiconductor Industries NV	33,163		1,080		Bank of New York Mellon Corp/The		7,968		211
CEVA Inc ^(b),(c),(d)	123		37		5.20%^(g⁾

Intel Corp	210,144		7,328		Barclays Bank PLC 8.13%^(g)		152,120		3,961
King Yuan Electronics Co Ltd	4,231,000		3,721		Citigroup Inc 6.88%^(g),(h)		163,700		4,697
Microchip Technology Inc	22,208		1,345		Citigroup Inc 7.13%^(g),(h)		223,000		6,360
Powertech Technology Inc	1,849,000		5,275		CoBank ACB 6.20%^(g),(h)		7,000		735
QUALCOMM Inc	150,608		10,350		CoBank ACB 6.25%^(g),(h)		50,000		5,330
Samsung Electronics Co Ltd	4,174		5,970		Fifth Third Bancorp 6.63%^(g),(h)		209,585		6,290
Silicon Motion Technology Corp ADR	13,068		531		Goldman Sachs Group Inc/The 5.50%^(g),(h)		32,200		839
STMicroelectronics NV	583,350		5,537		Huntington Bancshares Inc/OH 6.25%^(g)		117,900		3,155
Taiwan Semiconductor Manufacturing Co Ltd	1,205,000		7,232		ING Groep NV 6.13%^(g)		132,464		3,376
		$	48,406		JPMorgan Chase & Co 6.10%^(g)		23,400		624
Software - 0.30%					KeyCorp 8.63%^(g),(h)		39,846		1,040
Aspect Software Inc ^(b),(d)	386,408		5,796		M&T Bank Corp 6.38%^(g),(h)		1,505		1,584
CA Inc	173,020		5,319		Morgan Stanley 7.13%^(g),(h)		4,021		117
Hansen Technologies Ltd	124,716		390		PNC Financial Services Group Inc/The		234,700		6,619
InterXion Holding NV ^(b)	251,200		9,352		6.13%^(g),(h)
Microsoft Corp ^(a)	212,482		12,732		Royal Bank of Scotland Group PLC 5.75%^(g)		186,878		4,700
		$	33,589		State Street Corp 5.25%^(g)		220,550		5,602
Storage & Warehousing - 0.04%					State Street Corp 5.90%^(g),(h)		65,000		1,823
Safestore Holdings PLC	1,018,258		4,469		TCF Financial Corp 7.50%^(g)		48,227		1,260
					US Bancorp 6.00%^(g),(h)		356,543		9,131
Supranational Bank - 0.01%					Valley National Bancorp 6.25%^(g),(h)		184,000		5,305
Banco Latinoamericano de Comercio Exterior	55,724		1,503		Wells Fargo & Co 6.63%^(g),(h)		1,861		55
SA								$	76,841
					Diversified Financial Services - 0.05%
Telecommunications - 0.79%					Affiliated Managers Group Inc 6.38%		22,111		569
AT&T Inc ^(a)	378,604		13,929		Charles Schwab Corp/The 6.00%^(g)		165,953		4,589
BCE Inc ^(a)	223,600		10,160
								$	5,158
Cisco Systems Inc	408,272		12,526		Electric - 0.13%
Frontier Communications Corp	731,000		2,939		Dominion Resources Inc/VA 5.25%		200,000		4,986
Infrastrutture Wireless Italiane SpA ^(f)	720,592		3,406
Level 3 Communications Inc ^(b)	132,000		7,412		Entergy Arkansas Inc 4.90%		13,312		337
					Entergy Louisiana LLC 4.70%		170,915		4,346
Mobile TeleSystems PJSC ADR	127,417		982		Entergy New Orleans Inc 5.00%		52,335		1,345
Orange SA	170,255		2,679		Interstate Power & Light Co 5.10%^(g)		78,658		2,113
Telenor ASA	183,708		2,922		NextEra Energy Capital Holdings Inc 5.13%		83,016		2,080
TELUS Corp	73,200		2,371
T-Mobile US Inc ^(b)	97,000		4,824					$	15,207
Verizon Communications Inc ^(a)	498,887		23,996		Food- 0.01	%
					Dairy Farmers of America Inc 7.88%^(f),(g)		10,000		1,048
		$	88,146
Transportation - 0.66%					Insurance - 0.37%
CSX Corp	263,618		8,043		Aegon NV 6.38%^(g)		322,080		8,200
East Japan Railway Co	252,900		22,262		Aflac Inc 5.50%		159,572		4,127
Groupe Eurotunnel SE	912,841		8,544		Allstate Corp/The 6.63%^(g)		118,903		3,229
Kamigumi Co Ltd	502,000		4,286		Allstate Corp/The 6.75%^(g)		43,356		1,171
Kansas City Southern	27,236		2,390		American Financial Group Inc/OH 5.75%		1,442		37
					American Financial Group Inc/OH 6.38%		22,964		598


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	PREFERRED STOCKS (continued)			Shares Held		Value(000			's)			Principal
	Insurance (continued)									BONDS (continued)		Amount (000's) Value (000's)
	Arch Capital Group Ltd 5.25		%^(g)		60,000	$		1,463		Apparel (continued)
	Arch Capital Group Ltd 6.75		%^(g)		92,770			2,372		Hanesbrands Inc
	Aspen Insurance Holdings Ltd 7.25%^(g)				40,727			1,051		4.63%, 05/15/2024^(f)		$	4,900	$	4,983
	Axis Capital Holdings Ltd 6.88%^(g)				138,578			3,555					$		7,082
	Hartford Financial Services Group Inc/The				153,051			4,787		Automobile Asset Backed Securities - 0.17%
	7.88%^(h)									AmeriCredit Automobile Receivables Trust
	Protective Life Corp 6.25%				122,005			3,151		2016-3
	Reinsurance Group of America Inc 6.20%^(h)				22,411			641		1.09%, 11/08/2019^(h)			3,500		3,506
	RenaissanceRe Holdings Ltd 5.38%^(g)				12,525			321		Capital Auto Receivables Asset Trust 2016-2
	Torchmark Corp 5.88%				65,202			1,685		1.12%, 01/22/2019^(h)			5,000		5,009
	XLIT Ltd 4.00%^(c),(g),(h)				6,623			5,232		GM Financial Automobile Leasing Trust
						$		41,620		2016-3
	Media- 0.01%									0.89%, 02/20/2019^(h)			5,000		5,005
	Comcast Corp 5.00%				33,511			870		World Omni Automobile Lease Securitization
										Trust 2016-A
	REITS- 0.16%									0.94%, 02/15/2019^(h)			5,000		5,011
	Digital Realty Trust Inc 6.63%^(g)				62,726			1,606					$		18,531
	Digital Realty Trust Inc 7.38		%^(g)		8,320			231		Automobile Floor Plan Asset Backed Securities - 0.05%
	Equity Residential 8.29%^(g)				20,702			1,331		Nissan Master Owner Trust Receivables
	Kimco Realty Corp 5.50%^(g)				68,294			1,734		0.93%, 01/15/2020^(h)			5,000		5,005
	National Retail Properties Inc 6.63%^(g)				63,925			1,633
	Prologis Inc 8.54%^(g)				92,034			6,005		Automobile Manufacturers - 0.12%
	PS Business Parks Inc 6.00%^(g)				104,579			2,662		BCD Acquisition Inc
	Public Storage 5.88%^(g)				57,851			1,545		9.63%, 09/15/2023^(f)			7,320		7,558
	Public Storage 6.00%^(g)				20,000			539		Fiat Chrysler Finance Europe
	Public Storage 6.38%^(g)				12,032			329		4.75%, 07/15/2022		EUR	1,800		2,184
	Ventas Realty LP / Ventas Capital Corp				1,047			28		6.75%, 10/14/2019			1,200		1,518
	5.45%									Jaguar Land Rover Automotive PLC
						$		17,643		3.88%, 03/01/2023		GBP	600		747
	Savings & Loans - 0.00%									Volvo Treasury AB
	Astoria Financial Corp 6.50%^(g)				2,980			78		4.20%, 06/10/2075^(h)		EUR	1,000		1,152
													$		13,159
	Telecommunications - 0.19%									Automobile Parts & Equipment - 0.10%
	Centaur Funding Corp 9.08%^(f)				11,900			14,042		Adient Global Holdings Ltd
	Qwest Corp 7.00%				44,419			1,128		3.50%, 08/15/2024^(f)			1,250		1,363
	Qwest Corp 7.50%				55,306			1,406		Allison Transmission Inc
	Telephone & Data Systems Inc 6.88%				16,998			437		5.00%, 10/01/2024^(f)		$	2,740		2,795
	Telephone & Data Systems Inc 7.00		%		115,245			2,935		LKQ Italia Bondco SpA
	Verizon Communications Inc 5.90%				65,121			1,745		3.88%, 04/01/2024		EUR	800		934
						$		21,693		Metalsa SA de CV
	Transportation - 0.12%									4.90%, 04/24/2023^(f)		$	1,583		1,551
	CEVA Group PLC 0.00%^(b),(c),(d)				267			80		Schaeffler Verwaltung Zwei GmbH
	Seaspan Corp 6.38%^(c)				533,750			13,536		3.75%, PIK 4.50%, 09/15/2026⁽ⁱ⁾		EUR	3,800		4,120
						$		13,616					$		10,763
	TOTAL PREFERRED STOCKS					$		193,774		Banks- 3.66	%
				Principal						ABN AMRO Bank NV
	BONDS- 66.04	%		Amount (000's)				Value(000	's)	6.25%, 09/13/2022^(h)		$	2,000		2,071
	Advertising - 0.02%									Australia & New Zealand Banking Group
	MDC Partners Inc									Ltd/United Kingdom
	6.50%, 05/01/2024^(f)			$	3,220		$	2,745		6.75%, 12/29/2049^(f),(g)			1,000		1,098
										Banco Bilbao Vizcaya Argentaria SA
	Aerospace & Defense - 0.46%									9.00%, 05/29/2049^(g)			3,000		3,116
	Accudyne Industries Borrower / Accudyne									Banco de Bogota SA
	Industries LLC									6.25%, 05/12/2026^(f)			244		252
	7.75%, 12/15/2020^(f)				7,840			6,233		6.25%, 05/12/2026^(f),(j)			728		752
	Leonardo-Finmeccanica SpA									Banco de Credito del Peru
	4.50%, 01/19/2021			EUR	3,200			3,927		4.25%, 04/01/2023			669		718
	StandardAero Aviation Holdings Inc									Banco Hipotecario SA
	10.00%, 07/15/2023 ^(f)			$	6,100			6,466		9.75%, 11/30/2020^(f)			4,340		4,904
	TA MFG. Ltd									Banco Inbursa SA Institucion de Banca
	3.63%, 04/15/2023			EUR	1,700			1,837		Multiple
	TransDigm Inc									4.13%, 06/06/2024^(f)			5,460		5,513
	5.50%, 10/15/2020			$	23,596			24,245		Banco Mercantil del Norte SA
	6.00%, 07/15/2022				2,540			2,648		5.75%, 10/04/2031^(f),(h)			2,510		2,425
	6.38%, 06/15/2026^(f)				6,350			6,493		Banco Nacional de Comercio Exterior
						$		51,849		SNC/Cayman Islands
										3.80%, 08/11/2026^(f),(h)			2,232		2,210
	Agriculture - 0.12%
	Vector Group Ltd									Banco Nacional de Costa Rica
	7.75%, 02/15/2021				12,556			13,152		5.88%, 04/25/2021^(f)			3,969		4,122
										Banco Santander SA
										6.38%, 05/29/2049^(g),(h)			2,000		1,851
	Apparel - 0.06%
	Hanesbrands Finance Luxembourg SCA									Bancolombia SA
	3.50%, 06/15/2024			EUR	1,825			2,099		5.13%, 09/11/2022			7,867		8,132


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal			Principal
BONDS (continued)		Amount (000's)	Value(000's)	BONDS (continued)	Amount (000's)		Value (000's)
Banks (continued)				Banks (continued)
Bancolombia SA (continued)				JPMorgan Chase & Co (continued)
5.95%, 06/03/2021	$	3,430	$ 3,778	5.30%, 12/29/2049^(g),(h)	$	2,000	$	2,030
Bank of America Corp				6.13%, 12/29/2049^(g),(h)		4,000		4,235
6.25%, 09/29/2049^(g),(h)		4,600	4,818	6.75%, 01/29/2049^(g),(h)		19,000		21,090
6.50%, 10/29/2049^(g),(h)		700	759	KeyCorp Capital III
Bank of Ceylon				7.75%, 07/15/2029		795		956
6.88%, 05/03/2017		2,095	2,126	Letras del Banco Central de la Republica
Bank of New York Mellon Corp/The				Argentina
4.95%, 12/29/2049^(g),(h)		4,000	4,095	0.00%, 12/21/2016^(b)	ARS	87,181		5,556
Barclays Bank PLC				Lloyds Bank PLC
7.75%, 04/10/2023^(h)		3,000	3,150	12.00%, 12/29/2049 ^(g),(h)	$	7,000		9,520
Barclays PLC				M&T Bank Corp
6.63%, 06/29/2049^(g),(h)		1,961	1,799	6.45%, 12/29/2049^(g),(h)		535		601
8.25%, 12/29/2049^(g),(h)		12,587	12,744	6.88%, 12/29/2049^(g)		1,900		1,912
BBVA Banco Continental SA				Morgan Stanley
5.00%, 08/26/2022^(f)		1,399	1,539	5.55%, 12/29/2049^(g),(h)		1,250		1,280
BBVA Bancomer SA/Texas				Nordea Bank AB
6.75%, 09/30/2022^(f)		4,825	5,426	5.50%, 09/29/2049^(f),(g),(h)		4,100		4,059
BNP Paribas SA				5.50%, 09/29/2049^(g),(h)		9,000		8,910
7.20%, 06/29/2049^(f),(g)		4,400	4,966	6.13%, 12/29/2049^(f),(g),(h)		5,000		4,931
7.37%, 12/29/2049^(f),(g),(h)		3,000	3,079	NTC Capital II
Cadence Financial Corp				1.47%, 04/15/2027^(h)		4,830		4,142
4.88%, 06/28/2019^(c),(f)		3,500	3,316	PNC Financial Services Group Inc/The
CITIC Ltd				6.75%, 07/29/2049^(g),(h)		8,500		9,435
8.62%, 05/29/2049^(g),(h)		3,500	3,903	Provident Funding Associates LP / PFG
Citigroup Capital III				Finance Corp
7.63%, 12/01/2036		8,600	10,567	6.75%, 06/15/2021^(f)		1,520		1,528
Citizens Financial Group Inc				Royal Bank of Scotland Group PLC
5.50%, 12/29/2049^(g),(h)		6,000	5,910	7.50%, 12/29/2049^(g),(h)		6,763		6,205
Commerzbank AG				7.65%, 08/29/2049^(g),(h)		600		709
8.13%, 09/19/2023^(f)		500	575	8.00%, 12/29/2049^(g),(h)		600		570
Cooperatieve Rabobank UA				Societe Generale SA
11.00%, 12/29/2049 ^(f),(g),(h)		9,015	10,862	1.61%, 12/29/2049^(f),(g),(h)		3,000		2,940
Corestates Capital III				7.38%, 12/29/2049^(f),(g),(h)		6,000		5,949
1.39%, 02/15/2027^(f),(h)		500	442	7.88%, 12/29/2049^(f),(g),(h)		2,000		1,980
Credit Agricole SA				8.00%, 12/29/2049^(f),(g),(h)		1,000		1,009
6.63%, 09/29/2049^(f),(g),(h)		4,000	3,890	8.25%, 09/29/2049^(g),(h)		7,500		7,716
8.12%, 09/19/2033^(f),(h)		4,000	4,330	Standard Chartered PLC
8.38%, 12/31/2049^(f),(g),(h)		4,000	4,503	5.70%, 03/26/2044		6,100		6,346
Credit Suisse AG				7.01%, 07/29/2049^(f),(g)		4,150		4,569
6.50%, 08/08/2023^(f)		2,000	2,177	Turkiye Garanti Bankasi AS
6.50%, 08/08/2023		5,000	5,444	5.25%, 09/13/2022^(f)		5,000		5,041
Credit Suisse Group AG				Turkiye Is Bankasi
6.25%, 12/29/2049^(f),(g),(h)		3,000	2,895	5.00%, 04/30/2020^(f)		6,674		6,641
7.50%, 12/29/2049^(f),(g),(h)		1,000	1,035	5.50%, 04/21/2022^(f)		11,232		11,196
Development Bank of Kazakhstan JSC				6.00%, 10/24/2022^(f)		2,898		2,871
4.13%, 12/10/2022^(f)		5,705	5,564	Turkiye Vakiflar Bankasi TAO
Dresdner Funding Trust I				5.50%, 10/27/2021^(f)		5,650		5,596
8.15%, 06/30/2031^(f)		4,500	5,349	6.00%, 11/01/2022^(f)		4,831		4,756
Finansbank AS/Turkey				UBS Group AG
6.25%, 04/30/2019^(f)		10,757	11,243	6.88%, 12/29/2049^(g),(h)		5,500		5,443
First Maryland Capital I				US Bancorp
1.88%, 01/15/2027^(h)		10,000	8,575	5.12%, 12/29/2049^(g),(h)		4,200		4,431
Fleet Capital Trust V				Wells Fargo & Co
1.86%, 12/18/2028^(h)		7,500	6,487	5.90%, 12/29/2049^(g),(h)		3,000		3,139
Global Bank Corp				7.98%, 12/31/2049^(g),(h)		12,000		12,510
4.50%, 10/20/2021^(f)		2,575	2,564			$		410,094
Goldman Sachs Group Inc/The				Beverages - 0.03%
5.70%, 12/29/2049^(g),(h)		2,000	2,025	Cott Corp
Grupo Aval Ltd				5.50%, 07/01/2024	EUR	3,050		3,528
4.75%, 09/26/2022^(f)		1,258	1,241
HBOS Capital Funding LP				Building Materials - 0.35%
6.85%, 03/29/2049^(g)		10,000	10,100	BMC East LLC
HSBC Capital Funding Dollar1 LP				5.50%, 10/01/2024^(f)	$	2,780		2,822
10.18%, 12/29/2049 ^(f),(g),(h)		4,000	6,040	Boise Cascade Co
HSBC Holdings PLC				5.63%, 09/01/2024^(f)		2,575		2,604
6.87%, 12/29/2049^(g),(h)		14,800	15,577	Builders FirstSource Inc
ICICI Bank Ltd				5.63%, 09/01/2024^(f)		1,600		1,616
6.37%, 04/30/2022^(h)		1,900	1,926	Cemex Finance LLC
Itau Unibanco Holding SA/Cayman Island				9.38%, 10/12/2022^(f)		6,482		7,082
5.65%, 03/19/2022^(f)		2,895	2,963	Cemex SAB de CV
JPMorgan Chase & Co				5.70%, 01/11/2025^(f)		5,386		5,480
5.00%, 12/29/2049^(g),(h)		5,455	5,346	6.13%, 05/05/2025^(f)		3,335		3,452


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



			Principal						Principal
	BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
	Building Materials (continued)						Commercial Mortgage Backed Securities (continued)
	Cemex SAB de CV (continued)						CD 2007-CD4 Commercial Mortgage Trust
	7.25%, 01/15/2021^(f)		$	1,184	$	1,272	5.40%, 12/11/2049	$	37,942	$	31,669
	7.75%, 04/16/2026^(f)			2,657		2,977	CFCRE Commercial Mortgage Trust 2011-
	HeidelbergCement AG						C1
	2.25%, 03/30/2023		EUR	500		575	5.86%, 04/15/2044^(f),(h)		5,550		6,108
	HeidelbergCement Finance Luxembourg SA						Citigroup Commercial Mortgage Trust 2007-
	7.50%, 04/03/2020			2,000		2,687	C6
	Louisiana-Pacific Corp						5.71%, 07/10/2017^(f),(h)		30,000		22,563
	4.88%, 09/15/2024^(f)		$	540		531	5.71%, 12/10/2049^(h)		19,345		14,364
	St Marys Cement Inc Canada						Citigroup Commercial Mortgage Trust 2012-
	5.75%, 01/28/2027^(f)			1,467		1,481	GC8
	Standard Industries Inc/NJ						4.88%, 09/10/2045^(f),(h)		1,875		1,540
	5.50%, 02/15/2023^(f)			3,600		3,744	Citigroup Commercial Mortgage Trust 2013-
	Votorantim Cimentos SA						GC15
	7.25%, 04/05/2041^(f)			2,642		2,569	4.25%, 09/10/2046^(f),(h)		16,492		11,227
				$		38,892	5.11%, 09/10/2046^(f),(h)		7,700		7,141
	Chemicals - 0.57%						Citigroup Commercial Mortgage Trust 2014-
	A Schulman Inc						GC19
	6.88%, 06/01/2023^(f)			2,405		2,447	1.24%, 03/10/2047^(f),(h),(k)		15,244		1,002
	Axalta Coating Systems Dutch Holding B						4.90%, 03/10/2047^(f),(h)		3,425		2,873
	BV						4.90%, 03/10/2047^(h)		4,150		4,401
	3.75%, 01/15/2025^(f)		EUR	2,700		2,968	Citigroup Commercial Mortgage Trust 2014-
	Axalta Coating Systems LLC						GC23
	4.88%, 08/15/2024^(f)		$	2,000		2,030	1.30%, 07/10/2047^(f),(h),(k)		55,444		3,900
	Blue Cube Spinco Inc						Citigroup Commercial Mortgage Trust 2015-
	9.75%, 10/15/2023			2,000		2,350	GC27
	Braskem America Finance Co						4.43%, 02/10/2048^(h)		10,000		9,635
	7.13%, 07/22/2041^(f)			7,210		7,476	Citigroup Commercial Mortgage Trust 2016-
	Braskem Finance Ltd						C1
	5.75%, 04/15/2021			3,075		3,189	1.95%, 05/10/2049^(h),(k)		37,881		5,145
	5.75%, 04/15/2021^(f)			3,375		3,500	Citigroup Commercial Mortgage Trust 2016-
	7.38%, 10/29/2049^(f),(g)			1,533		1,520	GC37
	CF Industries Inc						1.81%, 04/10/2049^(h),(k)		15,307		1,942
	5.15%, 03/15/2034			975		876	COMM 2012-CCRE1 Mortgage Trust
	Consolidated Energy Finance SA						2.46%, 05/15/2045^(f)		13,993		10,053
	6.75%, 10/15/2019^(f)			6,898		6,898	5.35%, 05/15/2045^(f),(h)		8,889		9,123
	Equate Petrochemical BV						COMM 2012-CCRE4 Mortgage Trust
	3.00%, 03/03/2022^(f),(h),(j)			1,145		1,127	4.57%, 10/15/2045^(f),(h)		5,000		4,848
	4.25%, 11/03/2026^(f),(j)			11,293		11,194	COMM 2012-CCRE5 Mortgage Trust
	INEOS Group Holdings SA						4.33%, 12/10/2045^(f),(h)		3,475		3,333
	5.75%, 02/15/2019		EUR	1,800		2,025	4.33%, 12/10/2045^(f),(h)		7,500		6,921
	Mexichem SAB de CV						COMM 2013-CCRE11 Mortgage Trust
	5.88%, 09/17/2044^(f)		$	1,947		1,889	0.87%, 10/10/2046^{(d),(f),(h),(k)}		38,266		1,746
	OCP SA						4.37%, 10/10/2046^(f),(h)		5,108		3,553
	5.63%, 04/25/2024^(f)			794		854	5.17%, 10/10/2046^(f),(h)		13,519		12,535
	Platform Specialty Products Corp						Comm 2013-CCRE13 Mortgage Trust
	6.50%, 02/01/2022^(f)			6,450		6,256	4.75%, 12/10/2023^(f),(h)		6,421		5,953
	PSPC Escrow Corp						4.75%, 12/10/2023^(f),(h)		18,660		13,148
	6.00%, 02/01/2023		EUR	2,900		3,072	COMM 2013-CCRE6 Mortgage Trust
	Trinseo Materials Operating SCA / Trinseo						1.47%, 03/10/2046^(h),(k)		86,074		3,483
	Materials Finance Inc						4.17%, 03/10/2046^(f),(h)		12,700		11,202
	6.38%, 05/01/2022			3,400		3,958	4.17%, 03/10/2046^(f),(h)		10,500		7,917
				$		63,629	COMM 2013-CCRE7 Mortgage Trust
							4.35%, 03/10/2046^(f),(h)		7,500		6,948
	Coal- 0.46	%
	CONSOL Energy Inc						COMM 2013-LC6 Mortgage Trust
							4.28%, 01/10/2046^(f),(h)		5,205		4,856
	5.88%, 04/15/2022		$	6,545		6,050
	8.00%, 04/01/2023			5,300		5,247	COMM 2014-CCRE15 Mortgage Trust
	Foresight Energy LLC / Foresight Energy						4.26%, 02/10/2047^(f),(h)		5,414		3,586
	Finance Corp						COMM 2014-CCRE17 Mortgage Trust
	9.00%, PIK 1.00%, 08/15/2021^(f),(h),(i)			42,809		40,562	0.33%, 05/10/2047^(f),(h),(k)		44,717		894
							0.80%, 05/10/2047^(f),(h),(k)		62,604		3,570
				$		51,859
							4.30%, 05/10/2047^(f),(h)		5,311		3,330
	Commercial Mortgage Backed Securities - 14.19%
							4.80%, 05/10/2047^(f),(h)		12,469		11,338
	Banc of America Commercial Mortgage Trust
	2006-6						COMM 2014-CCRE21 Mortgage Trust
							1.42%, 12/10/2047^(f),(h),(k)		20,879		1,920
	5.48%, 10/10/2045			5,000		5,009
	Banc of America Merrill Lynch Commercial						COMM 2014-LC17 Mortgage Trust
							3.11%, 10/10/2047^(f)		4,383		2,532
	Mortgage Inc
							3.69%, 10/10/2047^(f),(h)		4,133		3,196
	4.77%, 07/10/2043			14,250		5,785
	4.85%, 07/10/2043			9,500		1,633	Comm 2014-UBS2 Mortgage Trust
	5.35%, 11/10/2042^(h)			3,044		2,435	5.18%, 03/10/2047^(f),(h)		13,190		11,284
	CD 2006-CD2 Mortgage Trust						COMM 2014-UBS3 Mortgage Trust
	5.43%, 01/15/2046^(h)			6,535		4,771	1.29%, 06/10/2047^(f),(h),(k)		60,721		4,166
							4.81%, 06/10/2047^(f),(h)		21,861		17,869


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal			Principal
BONDS (continued)		Amount (000's)	Value(000 's)	BONDS (continued)	Amount (000's)		Value (000's)
Commercial Mortgage Backed Securities (continued)				Commercial Mortgage Backed Securities (continued)
COMM 2014-UBS5 Mortgage Trust				GE Commercial Mortgage Corp Series 2007-
3.49%, 09/10/2047^(f),(h)	$	10,000	$ 7,059	C1 Trust
COMM 2014-UBS6 Mortgage Trust				5.54%, 12/10/2049^(f)	$	9,000	$	8,902
0.50%, 12/10/2047^(f),(h),(k)		60,589	2,009	5.61%, 12/10/2049^(h)		9,075		8,984
COMM 2015-LC23 Mortgage Trust				GS Mortgage Securities Corp II
3.65%, 10/10/2053^(f),(h)		6,000	4,868	3.38%, 05/10/2050^(h)		4,500		3,070
COMM 2016-COR1 Mortgage Trust				GS Mortgage Securities Trust 2010-C1
1.64%, 10/10/2049^(h),(k)		46,000	4,697	1.44%, 08/10/2043^(f),(h),(k)		44,810		1,957
4.54%, 10/10/2049		10,000	9,763	GS Mortgage Securities Trust 2010-C2
Commercial Mortgage Pass Through				5.18%, 12/10/2043^(f),(h)		5,000		5,103
Certificates				GS Mortgage Securities Trust 2011-GC5
3.50%, 02/10/2047^(f)		18,498	11,150	5.40%, 08/10/2044^(f),(h)		3,660		3,358
Commercial Mortgage Trust 2007-GG9				GS Mortgage Securities Trust 2012-GC6
5.51%, 03/10/2039		53,926	50,963	0.20%, 01/10/2045^(f),(h),(k)		226,505		2,143
5.53%, 03/10/2039		14,000	11,475	GS Mortgage Securities Trust 2012-GCJ7
Credit Suisse Commercial Mortgage Trust				5.73%, 05/10/2045^(f),(h)		7,429		7,251
Series 2006-C1				GS Mortgage Securities Trust 2012-GCJ9
5.69%, 02/15/2039^(h)		690	690	4.85%, 11/10/2045^(f),(h)		5,000		4,638
5.69%, 02/15/2039^(f),(h)		23,036	22,945	4.85%, 11/10/2045^(f),(h)		8,500		6,540
Credit Suisse Commercial Mortgage Trust				GS Mortgage Securities Trust 2013-GC16
Series 2006-C4				3.50%, 11/10/2046^(f),(h)		2,500		1,661
5.54%, 09/15/2039^(h)		11,885	11,923	5.32%, 11/10/2046^(f),(h)		3,544		3,277
Credit Suisse Commercial Mortgage Trust				GS Mortgage Securities Trust 2013-GCJ14
Series 2007-C1				4.77%, 08/10/2046^(f),(h)		3,500		3,190
5.42%, 02/15/2040		16,780	16,695	4.77%, 08/10/2046^(f),(h)		7,742		5,926
5.46%, 02/15/2040		30,000	15,298	4.77%, 08/10/2046^(f),(h)		2,500		1,809
Credit Suisse Commercial Mortgage Trust				GS Mortgage Securities Trust 2014-GC26
Series 2007-C5				1.20%, 11/10/2047^(f),(h),(k)		29,811		2,455
0.38%, 09/15/2040^(f),(h),(k)		212,399	420	4.51%, 11/10/2047^(f),(h)		2,570		2,055
Credit Suisse First Boston Mortgage Securities				JP Morgan Chase Commercial Mortgage
Corp				Securities Trust 2005-CIBC12
5.19%, 12/15/2040^(f),(h)		121	120	4.99%, 09/12/2037		69		69
CSAIL 2015-C1 Commercial Mortgage Trust				JP Morgan Chase Commercial Mortgage
0.50%, 04/15/2050^(f),(h),(k)		62,192	2,146	Securities Trust 2005-LDP1
DBUBS 2011-LC1 Mortgage Trust				5.80%, 03/15/2046^(f),(h)		359		359
0.31%, 11/10/2046^(f),(h),(k)		142,384	1,713	JP Morgan Chase Commercial Mortgage
DBUBS 2011-LC2 Mortgage Trust				Securities Trust 2005-LDP4
1.15%, 07/10/2044^(f),(h),(k)		11,303	432	5.13%, 10/15/2042		5,410		5,397
DBUBS 2011-LC3 Mortgage Trust				JP Morgan Chase Commercial Mortgage
3.75%, 08/10/2044^(f)		12,029	9,950	Securities Trust 2006-CIBC16
Freddie Mac Multifamily Structured Pass				5.62%, 05/12/2045		20,140		20,185
Through Certificates				JP Morgan Chase Commercial Mortgage
0.73%, 03/25/2020^(h),(k)		149,301	2,884	Securities Trust 2006-CIBC17
1.15%, 01/25/2021^(h),(k)		59,676	2,434	5.49%, 12/12/2043		28,436		11,962
1.36%, 11/25/2019^(h),(k)		54,164	1,721	JP Morgan Chase Commercial Mortgage
1.41%, 09/25/2045^(h),(k)		27,534	1,083	Securities Trust 2006-LDP6
1.45%, 04/25/2017^(h),(k)		39,201	162	5.65%, 04/15/2043^(h)		439		439
1.46%, 04/25/2041^(h),(k)		86,714	3,990	JP Morgan Chase Commercial Mortgage
1.59%, 05/25/2041^(h),(k)		159,348	13,374	Securities Trust 2006-LDP7
1.62%, 08/25/2040^(h),(k)		73,469	3,064	5.92%, 04/17/2045^(h)		9,000		6,998
1.66%, 07/25/2041^(h),(k)		166,791	14,951	JP Morgan Chase Commercial Mortgage
1.66%, 06/25/2042^(h),(k)		13,000	495	Securities Trust 2006-LDP9
1.70%, 04/25/2045^(h),(k)		48,322	1,817	5.34%, 05/15/2047		1,000		989
1.87%, 05/25/2040^(h),(k)		100,659	8,907	JP Morgan Chase Commercial Mortgage
1.90%, 11/25/2039^(h),(k)		68,598	2,446	Securities Trust 2007-CIBC19
2.00%, 09/25/2039^(h),(k)		32,000	1,104	5.71%, 02/12/2049^(h)		35,000		27,977
2.10%, 10/25/2025^(h),(k)		47,224	1,645	JP Morgan Chase Commercial Mortgage
2.21%, 12/25/2039^(h),(k)		25,654	2,465	Securities Trust 2007-CIBC20
2.25%, 01/25/2041^(h),(k)		15,544	1,324	6.18%, 02/12/2051^(f),(h)		5,755		4,310
2.52%, 07/25/2039^(h),(k)		89,000	3,317	JP Morgan Chase Commercial Mortgage
2.58%, 11/25/2041^(h),(k)		103,647	11,725	Securities Trust 2010-CNTR
2.58%, 12/25/2043^(h),(k)		72,451	6,951	1.98%, 08/05/2032^(f),(h),(k)		11,655		629
2.81%, 01/25/2043^(h),(k)		85,739	8,954	JP Morgan Chase Commercial Mortgage
2.90%, 08/25/2039^(h),(k)		38,877	4,490	Securities Trust 2011-C3
3.21%, 02/25/2042^(h),(k)		91,849	11,517	4.41%, 02/15/2046^(f)		4,330		3,870
3.61%, 06/25/2041^(h),(k)		4,400	638	JP Morgan Chase Commercial Mortgage
4.63%, 11/25/2044^(h),(k)		1,800	297	Securities Trust 2011-C5
FREMF 2011-K704 Mortgage Trust				4.00%, 08/15/2046^(f)		6,000		4,905
0.10%, 10/25/2030^(f),(h),(k)		556,569	797	5.39%, 08/15/2046^(f),(h)		4,844		4,969
FREMF 2016-KBAM Mortgage Trust				JP Morgan Chase Commercial Mortgage
7.74%, 09/25/2022^(f),(h)		84,100	80,702	Securities Trust 2012-C6
				2.97%, 05/15/2045^(f)		7,500		5,480


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal						Principal
	BONDS (continued)	Amount (000's)		Value(000	's)		BONDS (continued)	Amount (000's)		Value (000's)
	Commercial Mortgage Backed Securities (continued)						Commercial Mortgage Backed Securities (continued)
	JP Morgan Chase Commercial Mortgage					LB	-UBS Commercial Mortgage Trust 2004-
	Securities Trust 2012-C8						C1
	2.75%, 10/15/2045^(f),(h)	$	8,553	$ 6,074			5.00%, 01/15/2036	$	1,000	$	44
	JP Morgan Chase Commercial Mortgage					LB	-UBS Commercial Mortgage Trust 2005-
	Securities Trust 2013-C10						C3
	0.36%, 12/15/2047^(f),(h),(k)		276,436	5,496			4.95%, 07/15/2040^(h)		1,109		1,157
	JP Morgan Chase Commercial Mortgage					LB	-UBS Commercial Mortgage Trust 2006-
	Securities Trust 2013-C16						C6
	1.23%, 12/15/2046^(f),(h),(k)		20,750	1,384			5.47%, 09/15/2039^(h)		8,500		7,564
	3.74%, 12/15/2046^(f)		10,000	7,320		LB	-UBS Commercial Mortgage Trust 2006-
	4.97%, 12/15/2046^(f),(h)		16,203	15,289			C7
	JP Morgan Chase Commercial Mortgage						5.41%, 11/15/2038		25,029		19,346
	Securities Trust 2013-LC11					LB	-UBS Commercial Mortgage Trust 2007-
	0.99%, 04/15/2046^(f),(h),(k)		49,841	2,514			C6
	1.52%, 04/15/2046^(h),(k)		67,232	4,223			6.14%, 07/15/2040^(h)		13,250		12,920
	JP Morgan Chase Commercial Mortgage						6.14%, 07/15/2040^(h)		8,841		8,347
	Securities Trust 2014-C20					LB	-UBS Commercial Mortgage Trust 2007-
	1.14%, 07/15/2047^(h),(k)		94,288	4,686			C7
	JP Morgan Chase Commercial Mortgage						6.24%, 09/15/2045^(h)		8,845		8,460
	Securities Trust 2016-JP3					LB	-UBS Commercial Mortgage Trust 2008-
	3.48%, 08/15/2049^(h)		4,000	3,739			C1
	JPMBB Commercial Mortgage Securities						6.11%, 04/15/2041^(h)		11,154		5,351
	Trust 2013-C12						Merrill Lynch Mortgage Trust 2006-C1
	4.09%, 07/15/2045^(h)		13,826	12,225			5.59%, 05/12/2039^(h)		15,000		12,779
	JPMBB Commercial Mortgage Securities						Merrill Lynch Mortgage Trust 2007-C1
	Trust 2013-C15						5.83%, 06/12/2050^(h)		15,870		187
	1.49%, 11/15/2045^(f),(h),(k)		11,500	940			5.83%, 06/12/2050^(h)		5,615		56
	3.50%, 11/15/2045^(f)		9,191	6,791		ML	-CFC Commercial Mortgage Trust 2006-
	5.05%, 11/15/2045^(f),(h)		23,750	22,971			3
	JPMBB Commercial Mortgage Securities						5.52%, 07/12/2046^(h)		20,625		20,601
	Trust 2014-C18						5.55%, 07/12/2046^(h)		2,500		2,385
	1.09%, 02/15/2047^(h),(k)		57,560	2,829		ML	-CFC Commercial Mortgage Trust 2007-
	4.81%, 02/15/2047^(f),(h)		7,850	6,727			5
	JPMBB Commercial Mortgage Securities						5.45%, 08/12/2048		15,070		12,251
	Trust 2014-C19					ML	-CFC Commercial Mortgage Trust 2007-
	4.67%, 04/15/2047^(f),(h)		6,200	5,295			9
	4.67%, 04/15/2047^(h)		3,000	3,069			6.18%, 09/12/2049^(h)		35,490		26,973
	JPMBB Commercial Mortgage Securities						Morgan Stanley Bank of America Merrill
	Trust 2014-C21						Lynch Trust 2012-C5
	1.10%, 08/15/2047^(h),(k)		44,271	2,756			0.08%, 08/15/2045^(f),(h),(k)		221,584		1,041
	JPMBB Commercial Mortgage Securities						4.68%, 08/15/2045^(f),(h)		6,787		6,656
	Trust 2014-C23						Morgan Stanley Bank of America Merrill
	0.86%, 09/15/2047^(h),(k)		290,543	10,628			Lynch Trust 2013-C10
	JPMBB Commercial Mortgage Securities						4.08%, 07/15/2046^(f),(h)		5,609		5,160
	Trust 2014-C24						Morgan Stanley Bank of America Merrill
	3.93%, 11/15/2047^(f),(h)		20,500	15,917			Lynch Trust 2013-C11
	JPMBB Commercial Mortgage Securities						0.55%, 08/15/2046^(h),(k)		149,601		2,629
	Trust 2014-C26						Morgan Stanley Bank of America Merrill
	4.43%, 01/15/2048^(h)		5,000	4,977			Lynch Trust 2013-C13
	JPMBB Commercial Mortgage Securities						4.89%, 11/15/2046^(f),(h)		5,462		5,278
	Trust 2015-C28						Morgan Stanley Bank of America Merrill
	0.50%, 10/15/2048^(f),(h),(k)		54,005	1,859			Lynch Trust 2013-C8
	1.20%, 10/15/2048^(h),(k)		62,487	3,913			1.05%, 12/15/2048^(h),(k)		91,909		4,620
	4.24%, 10/15/2048^(h)		8,600	7,780			4.06%, 12/15/2048^(f),(h)		18,500		16,523
	JPMBB Commercial Mortgage Securities						Morgan Stanley Bank of America Merrill
	Trust 2015-C29						Lynch Trust 2013-C9
	3.70%, 05/15/2048^(h)		4,500	3,273			4.15%, 05/15/2046^(f),(h)		4,150		3,117
	JPMBB Commercial Mortgage Securities						Morgan Stanley Bank of America Merrill
	Trust 2015-C30						Lynch Trust 2014-C14
	0.71%, 07/15/2048^(h),(k)		83,472	3,117			4.83%, 02/15/2047^(h)		6,750		7,194
	JPMBB Commercial Mortgage Securities						4.83%, 02/15/2047^(f),(h)		10,331		7,798
	Trust 2015-C31						Morgan Stanley Bank of America Merrill
	0.50%, 08/15/2048^(f),(h),(k)		42,377	1,500			Lynch Trust 2014-C15
	JPMDB Commercial Mortgage Securities						0.89%, 04/15/2047^{(d),(f),(h),(k)}		67,485		3,965
	Trust						4.89%, 04/15/2047^(f),(h)		8,786		7,615
	0.00%, 12/15/2049^(b),(h),(j)		4,500	4,056			4.89%, 04/15/2047^(f),(h)		4,000		3,090
	LB Commercial Mortgage Trust 2007-C3						Morgan Stanley Bank of America Merrill
	5.92%, 07/15/2044^(h)		5,000	4,968			Lynch Trust 2014-C16
	5.92%, 07/15/2044^(h)		12,738	12,785			4.26%, 06/15/2047^(f),(h)		17,104		12,267
LB	-UBS Commercial Mortgage Trust 2003-						4.76%, 06/15/2047^(f),(h)		20,000		15,986
	C8						Morgan Stanley Bank of America Merrill
	0.19%, 09/15/2037^(f),(h),(k)		730	1			Lynch Trust 2014-C18
							0.98%, 10/15/2047^(h),(k)		192,430		7,634


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's)		Value(000	's)	BONDS (continued)	Amount (000's) Value (000's)
Commercial Mortgage Backed Securities (continued)						Commercial Mortgage Backed Securities (continued)
Morgan Stanley Bank of America Merrill						Wells Fargo Commercial Mortgage Trust
Lynch Trust 2014-C18 (continued)						2016-C34
4.49%, 10/15/2047		$	4,408	$ 4,547		2.19%, 06/15/2049^(h),(k)	$	36,381	$	5,093
Morgan Stanley Bank of America Merrill						Wells Fargo Commercial Mortgage Trust
Lynch Trust 2015-C20						2016-C36
1.39%, 02/15/2048^(f),(h),(k)			41,500	4,030		4.19%, 11/15/2059^(d),(h),(j)		4,000		3,945
Morgan Stanley Bank of America Merrill						Wells Fargo Commercial Mortgage Trust
Lynch Trust 2015-C26						2016-NXS5
3.06%, 10/15/2048^(f),(h)			2,185	1,545		4.88%, 01/15/2059^(h)		7,681		7,953
Morgan Stanley Bank of America Merrill						4.88%, 01/15/2059^(h)		4,254		3,722
Lynch Trust 2016-C29						WFRBS Commercial Mortgage Trust 2011-
1.66%, 05/15/2049^(h),(k)			42,370	4,665		C4
Morgan Stanley Capital I Trust 2007-HQ13						0.42%, 06/15/2044^(f),(h),(k)		91,368		1,453
5.93%, 12/15/2044			13,275	12,971		WFRBS Commercial Mortgage Trust 2011-
Morgan Stanley Capital I Trust 2011-C3						C5
0.80%, 07/15/2049^(f),(h),(k)			24,510	702		0.13%, 11/15/2044^(f),(h),(k)		121,416		746
UBS Commercial Mortgage Trust 2012-C1						WFRBS Commercial Mortgage Trust 2013-
0.35%, 05/10/2045^(f),(h),(k)			143,076	2,624		C11
5.00%, 05/10/2045^(f)			8,000	6,906		4.21%, 03/15/2045^(f),(h)		10,000		8,007
UBS-Barclays Commercial Mortgage Trust						WFRBS Commercial Mortgage Trust 2014-
2012	-C2					C20
1.63%, 05/10/2063^(f),(h),(k)			34,928	1,813		3.99%, 05/15/2047^(f),(h)		10,000		7,505
UBS-Barclays Commercial Mortgage Trust						WFRBS Commercial Mortgage Trust 2014-
2012	-C3					C22
4.96%, 08/10/2049^(f),(h)			25,827	26,028		3.91%, 09/15/2057^(f),(h)		10,000		7,625
4.96%, 08/10/2049^(f),(h)			20,994	19,101		WFRBS Commercial Mortgage Trust 2014-
UBS-Barclays Commercial Mortgage Trust						C24
2012	-C4					3.69%, 11/15/2047^(f)		11,047		6,874
4.50%, 12/10/2045^(f),(h)			21,000	20,560				$		1,589,012
4.50%, 12/10/2045^(f),(h)			17,981	14,774		Commercial Services - 0.55%
UBS-Barclays Commercial Mortgage Trust						AA Bond Co Ltd
2013	-C5					5.50%, 07/31/2043	GBP	500		609
4.09%, 03/10/2046^(f),(h)			9,150	8,428		ADT Corp/The
4.09%, 03/10/2046^(f),(h)			5,759	4,017		6.25%, 10/15/2021	$	3,500		3,828
Wachovia Bank Commercial Mortgage Trust						Atento Luxco 1 SA
Series 2006-C26						7.38%, 01/29/2020		7,717		7,871
6.11%, 06/15/2045^(h)			13,067	8,494		Avis Budget Finance PLC
Wachovia Bank Commercial Mortgage Trust						6.00%, 03/01/2021	EUR	681		779
Series 2006-C29						ENA Norte Trust
5.37%, 11/15/2048			18,379	18,338		4.95%, 04/25/2028^(f)	$	2,996		3,116
Wachovia Bank Commercial Mortgage Trust						Europcar Groupe SA
Series 2007-C30						5.75%, 06/15/2022	EUR	1,500		1,719
5.46%, 12/15/2043^(h)			6,778	6,547		Jaguar Holding Co II / Pharmaceutical Product
5.48%, 12/15/2043			22,500	21,504		Development LLC
Wachovia Bank Commercial Mortgage Trust						6.38%, 08/01/2023^(f)	$	5,300		5,329
Series 2007-C34						Live Nation Entertainment Inc
6.02%, 05/15/2046^(h)			8,718	8,626		4.88%, 11/01/2024^(f)		2,300		2,294
Wachovia Commercial Mortgage Securities						Loxam SAS
Inc Commercial Mortgage Pass Through						3.50%, 05/03/2023	EUR	1,300		1,481
Certificates Series 2003 C5						Midas Intermediate Holdco II LLC / Midas
2.02%, 06/15/2035^(f),(h),(k)			411	1		Intermediate Holdco II Finance Inc
Wells Fargo Commercial Mortgage Trust						7.88%, 10/01/2022^(f)	$	10,333		10,514
2010	-C1					Prime Security Services Borrower LLC /
0.59%, 11/15/2043^(f),(h),(k)			13,678	298		Prime Finance Inc
Wells Fargo Commercial Mortgage Trust						9.25%, 05/15/2023^(f)		7,150		7,597
2014-L	C18					Team Health Inc
1.18%, 12/15/2047^(h),(k)			85,302	5,695		7.25%, 12/15/2023^(f)		5,500		6,222
3.96%, 12/15/2047^(f),(h)			13,500	10,429		United Rentals North America Inc
Wells Fargo Commercial Mortgage Trust						4.63%, 07/15/2023		2,350		2,426
2015	-C28					5.50%, 05/15/2027^(j)		1,900		1,891
4.14%, 05/15/2048^(h)			10,000	7,883		WEX Inc
Wells Fargo Commercial Mortgage Trust						4.75%, 02/01/2023^(f)		6,050		6,020
2015-NX	S1							$		61,696
2.88%, 05/15/2048^(f),(h)			6,916	3,522
						Computers - 0.11%
4.10%, 05/15/2048^(h)			3,500	2,832
						Compiler Finance Sub Inc
Wells Fargo Commercial Mortgage Trust						7.00%, 05/01/2021^(f)		3,159		1,469
2015-NX	S2					Diamond 1 Finance Corp / Diamond 2 Finance
4.25%, 07/15/2058^(h)			9,153	6,923
						Corp
Wells Fargo Commercial Mortgage Trust						7.13%, 06/15/2024^(f)		7,495		8,211
2015-NX	S3					NCR Corp
3.15%, 09/15/2057^(f),(h)			5,000	3,316
						5.88%, 12/15/2021		2,950		3,101
								$		12,781


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Consumer Products - 0.10%					Diversified Financial Services (continued)
Central Garden & Pet Co					Quicken Loans Inc
6.13%, 11/15/2023	$	5,200	$	5,551	5.75%, 05/01/2025^(f)	$	400	$	395
Prestige Brands Inc							$		164,557
5.38%, 12/15/2021^(f)		4,500		4,668	Electric - 0.72%
Spectrum Brands Inc					1MDB Energy Ltd
4.00%, 10/01/2026^(f)	EUR	500		564	5.99%, 05/11/2022		5,000		5,478
		$		10,783	AES Andres BV / Dominican Power Partners /
Credit Card Asset Backed Securities - 0.05%					Empresa Generadora de Electricidad
Barclays Dryrock Issuance Trust					7.95%, 05/11/2026^(f)		4,700		4,982
0.92%, 09/15/2020^(h)	$	5,000		5,008	Comision Federal de Electricidad
					4.75%, 02/23/2027^(f)		4,678		4,760
Distribution & Wholesale - 0.35%					4.88%, 01/15/2024^(f)		891		927
Alliance Automotive Finance PLC					ContourGlobal Power Holdings SA
6.25%, 12/01/2021	EUR	1,850		2,163	5.13%, 06/15/2021^(f)	EUR	9,200		10,574
6.25%, 12/01/2021^(f)		500		585	Dynegy Inc
American Tire Distributors Inc					6.75%, 11/01/2019	$	1,080		1,093
10.25%, 03/01/2022 ^(f)	$	30,009		27,590	7.38%, 11/01/2022		4,020		3,877
LKQ Corp					8.00%, 01/15/2025^(f)		905		873
4.75%, 05/15/2023		5,000		5,131	Enel SpA
VWR Funding Inc					5.00%, 01/15/2075^(h)	EUR	2,000		2,341
4.63%, 04/15/2022	EUR	3,400		3,854	6.62%, 09/15/2076^(h)	GBP	943		1,242
		$		39,323	Eskom Holdings SOC Ltd
Diversified Financial Services - 1.47%					6.75%, 08/06/2023^(f)	$	700		722
Alliance Data Systems Corp					7.13%, 02/11/2025^(f)		9,528		9,858
5.38%, 08/01/2022^(f)	$	11,545		11,112	7.13%, 02/11/2025		500		517
5.88%, 11/01/2021^(f)		5,250		5,289	Greenko Investment Co
6.38%, 04/01/2020^(f)		2,000		2,038	4.88%, 08/16/2023^(f)		1,496		1,457
Ally Financial Inc					Listrindo Capital BV
5.75%, 11/20/2025		3,435		3,517	4.95%, 09/14/2026^(f)		1,765		1,783
American Express Co					Majapahit Holding BV
5.20%, 05/29/2049^(g),(h)		2,000		2,005	7.75%, 01/20/2020^(f)		1,730		1,981
Charles Schwab Corp/The					7.88%, 06/29/2037		1,375		1,777
7.00%, 02/28/2049^(g),(h)		4,198		4,927	NextEra Energy Capital Holdings Inc
Credit Acceptance Corp					7.30%, 09/01/2067^(h)		5,000		5,025
7.38%, 03/15/2023		5,979		6,173	NRG Energy Inc
Depository Trust & Clearing Corp/The					6.63%, 01/15/2027^(f)		1,360		1,274
4.88%, 12/29/2049^(f),(g),(h)		9,000		9,214	7.25%, 05/15/2026^(f)		3,250		3,198
Double Eagle Acquisition Sub Inc					Perusahaan Listrik Negara PT
7.50%, 10/01/2024^(f)		17,978		18,517	5.50%, 11/22/2021^(f)		2,340		2,592
Drawbridge Special Opportunities Fund LP /					Terraform Global Operating LLC
Drawbridge Special Opportunities					9.75%, 08/15/2022^(f)		7,585		7,888
5.00%, 08/01/2021^(c),(f)		9,300		8,905	Three Gorges Finance I Cayman Islands Ltd
FBM Finance Inc					3.15%, 06/02/2026^(f)		3,041		3,050
8.25%, 08/15/2021^(f)		15,742		16,450	3.70%, 06/10/2025^(f)		2,718		2,860
Jefferies Finance LLC / JFIN Co-Issuer Corp							$		80,129
7.38%, 04/01/2020^(f)		7,025		6,972	Electronics - 0.08%
Jefferies LoanCore LLC / JLC Finance Corp					Techem Energy Metering Service GmbH &
6.88%, 06/01/2020^(f)		8,700		8,222	Co KG
Lincoln Finance Ltd					7.88%, 10/01/2020	EUR	3,300		3,780
6.88%, 04/15/2021^(f)	EUR	7,450		8,885	Trionista TopCo GmbH
7.38%, 04/15/2021^(f)	$	7,500		8,063	6.88%, 04/30/2021		4,000		4,624
Lock AS							$		8,404
5.50%, 08/15/2020^(f),(h)	EUR	500		549	Energy - Alternate Sources - 0.16%
MBNA Capital B					Enviva Partners LP / Enviva Partners Finance
1.56%, 02/01/2027^(h)	$	7,500		6,525	Corp
National Rural Utilities Cooperative Finance					8.50%, 11/01/2021^(f),(j)	$	8,230		8,415
Corp					Greenko Dutch BV
5.25%, 04/20/2046^(h)		2,200		2,351	8.00%, 08/01/2019		2,554		2,728
Navient Corp					TerraForm Power Operating LLC
5.88%, 03/25/2021		1,930		1,932	5.88%, 02/01/2023^(f)		4,650		4,662
6.63%, 07/26/2021		2,435		2,453	6.13%, 06/15/2025^(f)		1,675		1,729
7.25%, 09/25/2023		5,350		5,330			$		17,534
NewStar Financial Inc					Engineering & Construction - 0.22%
7.25%, 05/01/2020		5,275		5,275	AECOM
NFP Corp					5.75%, 10/15/2022		4,000		4,198
9.00%, 07/15/2021^(f)		9,329		9,516	Aeropuertos Dominicanos Siglo XXI SA
Oxford Finance LLC / Oxford Finance Co-					9.75%, 11/13/2019^(f),(h)		4,675		4,897
Issuer Inc					Heathrow Finance PLC
7.25%, 01/15/2018^(f)		5,399		5,453	5.75%, 03/03/2025	GBP	1,150		1,549
Pershing Square Holdings Ltd					7.13%, 03/01/2017		1,500		1,871
5.50%, 07/15/2022^(f)		4,500		4,489


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



			Principal						Principal
	BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
	Engineering & Construction (continued)						Food (continued)
	Michael Baker Holdings LLC / Michael Baker						KeHE Distributors LLC / KeHE Finance
	Finance Corp						Corp
	9.63%, PIK 9.63%, 04/15/2019^(f),(i)		$	4,783	$	4,305	7.63%, 08/15/2021^(f)		$	7,775	$	7,619
	Michael Baker International LLC / CDL						Marfrig Holdings Europe BV
	Acquisition Co Inc						6.88%, 06/24/2019^(f)			3,336		3,444
	8.25%, 10/15/2018^(f)			2,650		2,650	8.00%, 06/08/2023^(f)			2,851		2,944
	Odebrecht Finance Ltd						Marfrig Overseas Ltd
	5.25%, 06/27/2029^(f)			3,757		1,804	9.50%, 05/04/2020^(f)			2,185		2,262
	5.25%, 06/27/2029			3,200		1,536	Minerva Luxembourg SA
	Pratama Agung Pte Ltd						6.50%, 09/20/2026^(f)			6,042		5,918
	6.25%, 02/24/2020			1,540		1,621	Moy Park BondCo PLC
				$		24,431	6.25%, 05/29/2021		GBP	1,500		1,891
	Entertainment - 0.46%						Pinnacle Foods Finance LLC / Pinnacle Foods
	AMC Entertainment Holdings Inc						Finance Corp
	5.88%, 11/15/2026^(f),(j)			3,645		3,659	5.88%, 01/15/2024		$	3,825		4,102
	6.38%, 11/15/2024^(d),(f),(j)		GBP	1,000		1,224	Post Holdings Inc
	Cinemark USA Inc						5.00%, 08/15/2026^(f)			9,370		9,089
	4.88%, 06/01/2023		$	2,850		2,854	6.00%, 12/15/2022^(f)			5,000		5,275
	Eldorado Resorts Inc						6.75%, 12/01/2021^(f)			5,900		6,313
	7.00%, 08/01/2023			3,500		3,719	Premier Foods Finance PLC
	GLP Capital LP / GLP Financing II Inc						6.50%, 03/15/2021		GBP	900		1,090
	4.88%, 11/01/2020			4,257		4,539	Simmons Foods Inc
	International Game Technology PLC						7.88%, 10/01/2021^(f)		$	12,516		12,610
	6.25%, 02/15/2022^(f)			6,750		7,155	Tesco PLC
	LG FinanceCo Corp						6.13%, 02/24/2022		GBP	3,900		5,384
	5.88%, 11/01/2024^(f)			5,100		5,147	TreeHouse Foods Inc
	National CineMedia LLC						6.00%, 02/15/2024^(f)		$	5,550		5,961
	5.75%, 08/15/2026^(f)			2,035		2,096	US Foods Inc
	Pinnacle Entertainment Inc						5.88%, 06/15/2024^(f)			9,600		9,984
	5.63%, 05/01/2024^(f)			2,705		2,725				$		121,395
	Regal Entertainment Group						Food Service - 0.02%
	5.75%, 03/15/2022			3,022		3,128	Aramark Services Inc
	Schumann SpA						5.13%, 01/15/2024^(f)			2,000		2,095
	7.00%, 07/31/2023		EUR	1,975		2,202
	Snai SpA						Forest Products & Paper - 0.22%
	6.38%, 11/07/2021^(f),(j)			1,000		1,111	Cascades Inc
	WMG Acquisition Corp						5.50%, 07/15/2022^(f)			3,000		3,062
	4.13%, 11/01/2024^(f)			500		566	Eldorado Intl. Finance GmbH
	6.75%, 04/15/2022^(f)		$	10,550		11,143	8.63%, 06/16/2021^(f)			8,005		6,524
				$		51,268	Fibria Overseas Finance Ltd
	Environmental Control - 0.02%						5.25%, 05/12/2024			1,182		1,210
	Advanced Disposal Services Inc						Mercer International Inc
	5.63%, 11/15/2024^(f),(j)			2,200		2,211	7.00%, 12/01/2019			6,340		6,570
							7.75%, 12/01/2022			3,970		4,178
	Food- 1.08	%					Smurfit Kappa Acquisitions
	Albertsons Cos LLC / Safeway Inc / New						2.75%, 02/01/2025		EUR	2,000		2,289
	Albertson's Inc / Albertson's LLC						WEPA Hygieneprodukte GmbH
	5.75%, 03/15/2025^(f)			3,500		3,455	3.75%, 05/15/2024			1,000		1,144
	6.63%, 06/15/2024^(f)			2,150		2,231				$		24,977
	Arcor SAIC						Gas- 0.15	%
	6.00%, 07/06/2023^(f)			1,295		1,373	LBC Tank Terminals Holding Netherlands
	Bakkavor Finance 2 PLC						BV
	8.25%, 02/15/2018		GBP	564		702	6.88%, 05/15/2023^(f)		$	11,750		11,779
	BI-LO LLC / BI-LO Finance Corp						NGL Energy Partners LP / NGL Energy
	9.25%, 02/15/2019^(f)		$	3,345		2,902	Finance Corp
	Boparan Finance PLC						6.88%, 10/15/2021			1,340		1,320
	5.50%, 07/15/2021^(h)		GBP	2,350		2,625	7.50%, 11/01/2023^(f)			2,700		2,707
	Campofrio Food Group SA						Perusahaan Gas Negara Persero Tbk
	3.38%, 03/15/2022		EUR	1,000		1,137	5.13%, 05/16/2024^(f)			926		988
	Casino Guichard Perrachon SA									$		16,794
	2.80%, 08/05/2026			3,500		4,056	Hand & Machine Tools - 0.00%
	3.25%, 03/07/2024^(h)			500		595	Stanley Black & Decker Inc
	Cencosud SA						5.75%, 12/15/2053			450		478
	5.15%, 02/12/2025^(f)		$	3,900		4,150
	6.63%, 02/12/2045^(f)			3,281		3,469	Healthcare - Products - 0.59%
	Cosan Luxembourg SA						ConvaTec Finance International SA
	7.00%, 01/20/2027^(f)			2,825		2,931	8.25%, PIK 9.00%, 01/15/2019^(f),(i)			30,361		30,361
	ESAL GmbH						ConvaTec Healthcare E SA
	6.25%, 02/05/2023^(f)			4,780		4,601	10.50%, 12/15/2018 ^(f)			13,749		13,904
	JBS Investments GmbH						DJO Finco Inc / DJO Finance LLC / DJO
	7.25%, 04/03/2024^(f)			3,250		3,282	Finance Corp
							8.13%, 06/15/2021^(f)			6,000		5,505


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal						Principal
	BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
	Healthcare - Products (continued)					Holding Companies - Diversified (continued)
	Kinetic Concepts Inc / KCI USA Inc					Sinochem Overseas Capital Co Ltd
	7.88%, 02/15/2021^(f)	$	4,050	$	4,364	6.30%, 11/12/2040	$	950	$	1,218
	9.63%, 10/01/2021^(f)		2,365		2,285			$		118,703
	Mallinckrodt International Finance SA /					Home Builders - 0.04%
	Mallinckrodt CB LLC					Beazer Homes USA Inc
	5.75%, 08/01/2022^(f)		4,605		4,363	8.75%, 03/15/2022^(f)		2,645		2,810
	Universal Hospital Services Inc					Woodside Homes Co LLC / Woodside Homes
	7.63%, 08/15/2020		5,685		5,458	Finance Inc
			$		66,240	6.75%, 12/15/2021^(f)		1,500		1,455
	Healthcare - Services - 1.97%							$		4,265
	Acadia Healthcare Co Inc					Home Furnishings - 0.02%
	5.13%, 07/01/2022		6,920		6,782	Tempur Sealy International Inc
	5.63%, 02/15/2023		1,088		1,089	5.50%, 06/15/2026		2,200		2,266
	6.50%, 03/01/2024		2,100		2,142
	Amsurg Corp					Insurance - 1.96%
	5.63%, 07/15/2022		2,350		2,397	ACE Capital Trust II
	Centene Corp					9.70%, 04/01/2030		4,000		6,040
	4.75%, 01/15/2025^(j)		8,445		8,408	AG Insurance SA/NV
	6.13%, 02/15/2024		4,985		5,309	6.75%, 03/29/2049^(g),(h)		3,000		3,180
	CHS/Community Health Systems Inc					AIG Life Holdings Inc
	5.13%, 08/01/2021		2,750		2,564	8.50%, 07/01/2030		5,400		6,899
	Envision Healthcare Corp					Alliant Holdings Intermediate LLC
	5.13%, 07/01/2022^(f)		7,717		7,717	8.25%, 08/01/2023^(f)		36,838		37,483
	HCA Inc					Allstate Corp/The
	4.50%, 02/15/2027		7,325		7,233	5.75%, 08/15/2053^(h)		100		107
	5.00%, 03/15/2024		2,500		2,604	American Equity Investment Life Holding
	5.25%, 06/15/2026		2,500		2,612	Co
	5.88%, 02/15/2026		10,150		10,657	6.63%, 07/15/2021		4,090		4,274
	Holding Medi-Partenaires SAS					American International Group Inc
	7.00%, 05/15/2020	EUR	3,265		3,759	8.18%, 05/15/2068		1,500		2,009
	HomeVi SAS					Aviva PLC
	6.88%, 08/15/2021		2,300		2,691	8.25%, 04/29/2049^(g)		350		369
	6.88%, 08/15/2021^(d),(f),(j)		500		585	AXA SA
	IASIS Healthcare LLC / IASIS Capital Corp					8.60%, 12/15/2030		6,332		8,896
	8.38%, 05/15/2019	$	6,600		6,286	Catlin Insurance Co Ltd
	Molina Healthcare Inc					7.25%, 07/29/2049^(f),(g)		6,150		4,951
	5.38%, 11/15/2022		2,950		3,070	Chubb Corp/The
	MPH Acquisition Holdings LLC					6.38%, 03/29/2067^(h)		900		848
	7.13%, 06/01/2024^(f)		5,000		5,350	Dai-ichi Life Insurance Co Ltd/The
	Opal Acquisition Inc					5.10%, 10/29/2049^(f),(g),(h)		2,400		2,637
	8.88%, 12/15/2021^(f)		49,086		40,005	Fidelity & Guaranty Life Holdings Inc
	RegionalCare Hospital Partners Holdings Inc					6.38%, 04/01/2021^(c),(f)		3,075		3,067
	8.25%, 05/01/2023^(f)		25,040		25,385	Glen Meadow Pass-Through Trust
	Select Medical Corp					6.51%, 02/12/2067^(f),(h)		3,000		2,362
	6.38%, 06/01/2021		6,511		6,430	Great-West Life & Annuity Insurance Capital
	Surgery Center Holdings Inc					LP
	8.88%, 04/15/2021^(f)		18,470		19,671	6.63%, 11/15/2034^(f)		2,400		2,681
	Surgical Care Affiliates Inc					HUB International Ltd
	6.00%, 04/01/2023^(f)		3,650		3,796	7.88%, 10/01/2021^(f)		5,200		5,315
	Synlab Bondco PLC					9.25%, 02/15/2021^(f)		15,090		15,618
	6.25%, 07/01/2022	EUR	2,500		2,964	Ironshore Holdings US Inc
	Tenet Healthcare Corp					8.50%, 05/15/2020^(f)		3,410		3,857
	5.00%, 03/01/2019	$	6,170		5,983	Kemper Corp
	5.50%, 03/01/2019		1,000		978	4.35%, 02/15/2025		2,500		2,539
	6.00%, 10/01/2020		3,000		3,160	Liberty Mutual Group Inc
	6.75%, 06/15/2023		32,910		30,236	7.80%, 03/07/2087^(f)		9,861		11,587
	WellCare Health Plans Inc					Liberty Mutual Insurance Co
	5.75%, 11/15/2020		600		618	7.70%, 10/15/2097^(f)		946		1,221
			$		220,481	Lincoln National Corp
	Holding Companies - Diversified - 1.06%					3.16%, 05/17/2066^(h)		3,802		3,092
	CeramTec Group GmbH					6.05%, 04/20/2067^(h)		5,584		4,356
	8.25%, 08/15/2021	EUR	4,600		5,353	MetLife Capital Trust IV
	Co-operative Group Holdings 2011 Ltd					7.88%, 12/15/2067^(f)		5,000		6,400
	7.50%, 07/08/2026	GBP	1,500		2,189	MetLife Capital Trust X
	Dubai Holding Commercial Operations MTN					9.25%, 04/08/2068^(f)		11,000		16,022
	Ltd					MetLife Inc
	6.00%, 02/01/2017		6,650		8,179	6.40%, 12/15/2066^(h)		6,800		7,616
	HRG Group Inc					Mitsui Sumitomo Insurance Co Ltd
	7.75%, 01/15/2022	$	84,166		87,744	7.00%, 03/15/2072^(f)		10,600		12,654
	7.88%, 07/15/2019		9,689		10,149	Provident Financing Trust I
	ProGroup AG					7.41%, 03/15/2038		4,400		4,934
	5.13%, 05/01/2022	EUR	3,300		3,871	Prudential Financial Inc
						5.88%, 09/15/2042^(h)		3,700		4,052


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Insurance (continued)					Machinery - Construction & Mining - 0.04%
Prudential PLC					Cortes NP Acquisition Corp
7.75%, 01/29/2049^(g)	$	2,215	$	2,259	9.25%, 10/15/2024^(f)		$	4,400	$	4,595
Reinsurance Group of America Inc
3.52%, 12/15/2065^(h)		5,000		4,220	Machinery - Diversified - 0.38%
USI Inc/NY					Cleaver-Brooks Inc
7.75%, 01/15/2021^(f)		10,774		10,882	8.75%, 12/15/2019^(f)			10,645		11,124
Voya Financial Inc					9.75%, 12/31/2019^(c),(d),(f)			12,500		12,687
5.65%, 05/15/2053^(h)		6,800		6,766	Cloud Crane LLC
Wilton Re Finance LLC					10.13%, 08/01/2024 ^(f)			6,730		7,016
5.88%, 03/30/2033^(f),(h)		8,450		8,682	CNH Industrial Capital LLC
XLIT Ltd					3.88%, 10/15/2021			2,925		2,903
6.50%, 12/31/2049^(g),(h)		2,100		1,610	Xerium Technologies Inc
		$		219,485	9.50%, 08/15/2021^(f)			8,900		9,034
Internet - 0.57%								$		42,764
Cogent Communications Group Inc					Media- 2.73	%
5.38%, 03/01/2022^(f)		3,050		3,134	Altice Financing SA
EIG Investors Corp					5.25%, 02/15/2023		EUR	1,000		1,146
10.88%, 02/01/2024 ^(f)		4,125		3,785	6.63%, 02/15/2023^(f)		$	10,585		10,902
Match Group Inc					Altice Finco SA
6.38%, 06/01/2024		2,000		2,160	7.63%, 02/15/2025^(f)			2,260		2,237
6.75%, 12/15/2022		2,395		2,548	Altice US Finance I Corp
Netflix Inc					5.50%, 05/15/2026^(f)			4,250		4,335
4.38%, 11/15/2026^(f)		4,310		4,240	AMC Networks Inc
5.50%, 02/15/2022		8,260		8,941	5.00%, 04/01/2024			5,500		5,569
TIBCO Software Inc					Cable One Inc
11.38%, 12/01/2021 ^(f)		4,850		4,680	5.75%, 06/15/2022^(f)			2,067		2,181
Zayo Group LLC / Zayo Capital Inc					Cablevision SA/Argentina
6.00%, 04/01/2023		23,775		25,023	6.50%, 06/15/2021^(f)			3,228		3,357
6.38%, 05/15/2025		8,590		9,044	CBS Radio Inc
		$		63,555	7.25%, 11/01/2024^(f)			3,000		3,116
Investment Companies - 0.01%					CCO Holdings LLC / CCO Holdings Capital
GrupoSura Finance SA					Corp
5.50%, 04/29/2026^(f)		1,377		1,460	5.13%, 05/01/2023^(f)			7,900		8,157
					5.50%, 05/01/2026^(f)			8,000		8,195
Iron & Steel - 0.58%					5.88%, 04/01/2024^(f)			4,575		4,838
ABJA Investment Co Pte Ltd					Clear Channel Worldwide Holdings Inc
4.85%, 01/31/2020		914		925	6.50%, 11/15/2022			7,400		7,437
5.95%, 07/31/2024		855		861	7.63%, 03/15/2020			44,349		42,908
AK Steel Corp					7.63%, 03/15/2020			5,140		4,857
7.50%, 07/15/2023		2,660		2,866	CSC Holdings LLC
7.63%, 05/15/2020		1,610		1,618	5.25%, 06/01/2024			7,000		6,545
ArcelorMittal					5.50%, 04/15/2027^(f)			1,230		1,248
3.00%, 04/09/2021	EUR	2,300		2,588	6.63%, 10/15/2025^(f)			13,850		15,010
8.00%, 10/15/2039^(h)	$	4,000		4,300	DISH DBS Corp
Evraz Group SA					4.25%, 04/01/2018			1,450		1,484
6.50%, 04/22/2020		7,941		8,159	5.13%, 05/01/2020			6,350		6,572
Optima Specialty Steel					5.88%, 07/15/2022			3,600		3,717
12.00%, 12/30/2016 ^(c),(d)		14,740		12,603	5.88%, 11/15/2024			11,800		11,881
Signode Industrial Group Lux SA/Signode					7.75%, 07/01/2026			4,700		5,161
Industrial Group US Inc					Grupo Televisa SAB
6.38%, 05/01/2022^(f)		7,995		8,075	6.13%, 01/31/2046			6,350		6,930
thyssenkrupp AG					LGE HoldCo VI BV
4.00%, 08/27/2018	EUR	1,700		1,981	7.13%, 05/15/2024		EUR	4,525		5,613
Vale Overseas Ltd					Midcontinent Communications / Midcontinent
4.38%, 01/11/2022	$	1,176		1,179	Finance Corp
5.88%, 06/10/2021		8,425		8,983	6.88%, 08/15/2023^(f)		$	7,300		7,774
6.25%, 08/10/2026		1,120		1,201	Nielsen Finance LLC / Nielsen Finance Co
6.88%, 11/10/2039		10,004		9,886	5.00%, 04/15/2022^(f)			7,478		7,628
		$		65,225	Quebecor Media Inc
Lodging - 0.14%					5.75%, 01/15/2023			2,000		2,090
Interval Acquisition Corp					RCN Telecom Services LLC / RCN Capital
5.63%, 04/15/2023		2,100		2,168	Corp
					8.50%, 08/15/2020^(f)			6,929		7,384
MCE Finance Ltd
5.00%, 02/15/2021^(f)		2,034		2,034	SFR Group SA
TVL Finance PLC					5.63%, 05/15/2024		EUR	4,000		4,605
8.50%, 05/15/2023^(f)	GBP	2,700		3,450	6.00%, 05/15/2022^(f)		$	7,975		8,177
					6.25%, 05/15/2024^(f)			3,000		2,998
Wynn Las Vegas LLC / Wynn Las Vegas
Capital Corp					7.38%, 05/01/2026^(f)			6,825		6,893
5.50%, 03/01/2025^(f)	$	7,975		7,995	Sinclair Television Group Inc
					5.13%, 02/15/2027^(f)			2,550		2,442
		$		15,647
					5.88%, 03/15/2026^(f)			3,250		3,356
					Sirius XM Radio Inc
					5.38%, 07/15/2026^(f)			5,150		5,230


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
Media (continued)					Mining (continued)
Sirius XM Radio Inc (continued)					Southern Copper Corp (continued)
6.00%, 07/15/2024^(f)	$	7,500	$	7,959	5.88%, 04/23/2045	$	1,720	$	1,718
Telenet Finance V Luxembourg SCA					Teck Resources Ltd
6.75%, 08/15/2024	EUR	4,500		5,443	3.75%, 02/01/2023		2,115		2,000
Tribune Media Co					6.25%, 07/15/2041		3,675		3,638
5.88%, 07/15/2022	$	2,925		2,925	Vedanta Resources PLC
Unitymedia GmbH					6.00%, 01/31/2019^(f)		2,070		2,060
3.75%, 01/15/2027	EUR	5,250		5,469	7.13%, 05/31/2023^(f)		99		95
6.13%, 01/15/2025^(f)	$	4,225		4,405	8.25%, 06/07/2021^(f)		1,219		1,248
UPC Holding BV							$		157,216
6.38%, 09/15/2022	EUR	5,300		6,183	Miscellaneous Manufacturers - 0.45%
UPCB Finance IV Ltd					Amsted Industries Inc
5.38%, 01/15/2025^(f)	$	1,150		1,167	5.00%, 03/15/2022^(f)		6,176		6,191
Virgin Media Finance PLC					5.38%, 09/15/2024^(f)		7,944		7,944
6.00%, 10/15/2024^(f)		6,725		6,826	Bombardier Inc
6.38%, 10/15/2024	GBP	3,100		3,918	6.13%, 01/15/2023^(f)		1,180		1,024
Virgin Media Secured Finance PLC					7.50%, 03/15/2025^(f)		7,775		6,959
4.88%, 01/15/2027		1,000		1,196	CBC Ammo LLC / CBC FinCo Inc
VTR Finance BV					7.25%, 11/15/2021^(f)		5,900		5,738
6.88%, 01/15/2024^(f)	$	8,365		8,752	General Electric Co
WideOpenWest Finance LLC /					5.00%, 12/29/2049^(g),(h)		21,719		23,009
WideOpenWest Capital Corp							$		50,865
13.38%, 10/15/2019		1,122		1,200	Mortgage Backed Securities - 1.08%
Ziggo Bond Finance BV					BCAP LLC 2013-RR4 Trust
5.88%, 01/15/2025^(f)		4,680		4,645	4.07%, 02/13/2051^{(d),(f),(h),(k)}		37,892		856
6.00%, 01/15/2027^(f)		2,555		2,509	6.07%, 02/13/2051^(d),(f),(h)		11,334		11,074
Ziggo Secured Finance BV					Fannie Mae REMICS
5.50%, 01/15/2027^(f)		10,715		10,581	5.47%, 09/25/2046^(h),(k)		16,536		4,372
		$		305,151	5.47%, 10/25/2046^(h),(k)		9,961		2,694
Metal Fabrication & Hardware - 0.15%					5.52%, 07/25/2042^(h),(k)		26,046		5,665
Novelis Corp					5.57%, 09/25/2046^(h),(k)		23,363		4,707
6.25%, 08/15/2024^(f)		2,225		2,314	5.57%, 09/25/2046^(h),(k)		22,225		4,606
Optimas OE Solutions Holding LLC / Optimas					5.57%, 09/25/2046^(h),(k)		24,302		5,247
OE Solutions Inc					5.57%, 09/25/2046^(h),(k)		19,357		3,864
8.63%, 06/01/2021^(f)		18,784		14,464	Freddie Mac REMICS
		$		16,778	5.57%, 12/15/2043^(h),(k)		21,665		4,829
Mining - 1.40%					6.12%, 04/15/2040^(h),(k)		14,853		2,538
Alcoa Nederland Holding BV					Ginnie Mae
6.75%, 09/30/2024^(f)		1,405		1,454	3.50%, 06/20/2041^(k)		28,281		4,231
7.00%, 09/30/2026^(f)		2,380		2,451	3.50%, 04/20/2042^(h),(k)		31,704		4,238
Aleris International Inc					4.00%, 03/20/2045^(h),(k)		10,839		1,946
7.88%, 11/01/2020		4,587		4,587	4.00%, 05/20/2045^(h),(k)		25,481		4,291
9.50%, 04/01/2021^(f)		4,000		4,300	4.50%, 04/20/2045^(h),(k)		16,884		3,170
Anglo American Capital PLC					4.50%, 04/20/2045^(k)		11,807		2,417
2.88%, 11/20/2020	EUR	500		573	4.52%, 09/16/2043^(h),(k)		37,790		5,513
3.50%, 03/28/2022		3,000		3,491	4.87%, 05/20/2041^(h),(k)		18,293		3,134
Century Aluminum Co					5.49%, 12/20/2040^(h),(k)		4,111		787
7.50%, 06/01/2021^(c),(f)	$	32,532		29,604	5.52%, 05/20/2046^(h),(k)		16,271		3,708
Cia Brasileira de Aluminio					5.57%, 06/20/2046^(h),(k)		16,237		4,088
4.75%, 06/17/2024^(f)		1,593		1,513	5.57%, 06/20/2046^(h),(k)		15,910		3,806
Cia Minera Ares SAC					5.67%, 08/20/2042^(h),(k)		20,878		4,177
7.75%, 01/23/2021^(f)		1,710		1,845	5.67%, 11/20/2045^(h),(k)		17,936		3,878
Cia Minera Milpo SAA					5.72%, 06/20/2044^(h),(k)		26,144		4,532
4.63%, 03/28/2023^(f)		3,381		3,385	5.72%, 10/20/2045^(h),(k)		20,666		4,427
Corp Nacional del Cobre de Chile					5.72%, 11/20/2045^(h),(k)		12,452		2,812
3.00%, 07/17/2022^(f)		12,513		12,355	6.07%, 03/20/2042^(h),(k)		20,999		5,653
5.63%, 09/21/2035^(f)		1,185		1,287	6.12%, 12/20/2042^(h),(k)		13,613		3,736
6.15%, 10/24/2036		7,408		8,458			$		120,996
Eldorado Gold Corp					Municipals - 0.01%
6.13%, 12/15/2020^(f)		10,675		10,782	Bogota Distrito Capital
First Quantum Minerals Ltd					9.75%, 07/26/2028	COP	1,900,000		665
7.00%, 02/15/2021^(f)		8,655		8,217
7.25%, 05/15/2022^(f)		2,831		2,679	Oil & Gas - 4.12%
International Wire Group Inc					Antero Resources Corp
10.75%, 08/01/2021 ^(f)		7,400		6,993	5.13%, 12/01/2022	$	4,900		4,937
Joseph T Ryerson & Son Inc					5.38%, 11/01/2021		6,500		6,598
11.00%, 05/15/2022 ^(f)		18,880		20,626	6.00%, 12/01/2020		1,150		1,183
Mirabela Nickel Ltd					Callon Petroleum Co
1.00%, 09/10/2044^(c),(d)		139		—	6.13%, 10/01/2024^(f)		2,730		2,812
Real Alloy Holding Inc					Chaparral Energy Inc
10.00%, 01/15/2019 ^(c),(f)		19,820		20,018	0.00%, 11/15/2022^(b)		8,275		6,413
Southern Copper Corp
5.25%, 11/08/2042		1,944		1,839


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal			Principal
BONDS (continued)		Amount (000's)	Value(000's)	BONDS (continued)	Amount (000's)		Value (000's)
Oil & Gas (continued)				Oil & Gas (continued)
CNOOC Finance 2015 USA LLC				Petrobras Argentina SA
3.50%, 05/05/2025	$	5,272	$ 5,354	7.38%, 07/21/2023^(f)	$	2,936	$	3,009
Comstock Resources Inc				Petrobras Global Finance BV
10.00%, PIK 12.25%, 03/15/2020⁽ⁱ⁾		10,500	10,553	5.38%, 01/27/2021		1,500		1,485
Continental Resources Inc/OK				6.75%, 01/27/2041		8,250		7,309
3.80%, 06/01/2024		4,640	4,269	6.88%, 01/20/2040		3,940		3,526
4.50%, 04/15/2023		8,800	8,383	8.38%, 05/23/2021		1,637		1,811
5.00%, 09/15/2022		1,940	1,901	8.75%, 05/23/2026		16,567		18,662
CrownRock LP / CrownRock Finance Inc				Petroleos de Venezuela SA
7.13%, 04/15/2021^(f)		3,750	3,863	5.38%, 04/12/2027		5,205		1,904
Delek & Avner Tamar Bond Ltd				5.50%, 04/12/2037		9,580		3,511
5.08%, 12/30/2023^(f)		617	656	6.00%, 05/16/2024		17,716		6,643
Diamondback Energy Inc				6.00%, 11/15/2026		30,522		11,338
4.75%, 11/01/2024^(f)		925	925	8.50%, 11/02/2017		2,753		2,003
Ecopetrol SA				Petroleos Mexicanos
5.88%, 09/18/2023		1,000	1,073	4.50%, 01/23/2026		1,613		1,558
5.88%, 05/28/2045		3,638	3,211	4.63%, 09/21/2023^(f)		7,940		7,919
7.38%, 09/18/2043		3,951	4,030	4.88%, 01/18/2024		733		736
EP Energy LLC / Everest Acquisition Finance				5.50%, 06/27/2044		2,941		2,533
Inc				5.63%, 01/23/2046		10,364		8,962
6.38%, 06/15/2023		5,300	3,604	6.00%, 03/05/2020		1,480		1,604
9.38%, 05/01/2020		4,005	3,144	6.38%, 02/04/2021^(f)		2,166		2,370
EP PetroEcuador via Noble Sovereign				6.38%, 01/23/2045		4,795		4,558
Funding I Ltd				6.50%, 06/02/2041		6,723		6,535
6.49%, 09/24/2019^(h)		5,622	5,552	6.63%, 06/15/2035		1,113		1,120
Extraction Oil & Gas Holdings LLC /				6.75%, 09/21/2047^(f)		18,854		18,689
Extraction Finance Corp				6.88%, 08/04/2026^(f)		8,092		9,047
7.88%, 07/15/2021^(f)		14,070	14,879	6.88%, 08/04/2026		3,222		3,602
Gazprom OAO Via Gaz Capital SA				9.50%, 09/15/2027		1,204		1,457
4.95%, 07/19/2022^(f)		4,677	4,803	Petroleum Co of Trinidad & Tobago Ltd
6.51%, 03/07/2022^(f)		2,760	3,024	6.00%, 05/08/2022^(f)		3,790		3,776
8.15%, 04/11/2018^(f)		321	345	Precision Drilling Corp
9.25%, 04/23/2019^(f)		3,701	4,223	5.25%, 11/15/2024		2,550		2,248
GeoPark Latin America Ltd Agencia en Chile				PTT Exploration & Production PCL
7.50%, 02/11/2020^(f)		3,338	3,101	4.88%, 12/29/2049^(f),(g),(h)		4,067		4,111
Gulfport Energy Corp				Puma International Financing SA
6.00%, 10/15/2024^(f)		5,200	5,298	6.75%, 02/01/2021^(f)		4,634		4,774
Halcon Resources Corp				QEP Resources Inc
8.63%, 02/01/2020^(f)		3,700	3,774	5.25%, 05/01/2023		3,050		2,997
KazMunayGas National Co JSC				Reliance Industries Ltd
6.38%, 04/09/2021^(f)		14,437	15,864	4.13%, 01/28/2025^(f)		1,757		1,813
6.38%, 04/09/2021		5,913	6,498	Repsol International Finance BV
7.00%, 05/05/2020		3,434	3,807	3.88%, 12/29/2049^(g),(h)	EUR	1,000		1,066
Keane Group Holdings				4.50%, 03/25/2075^(h)		1,250		1,274
8.50%, 08/08/2019^(c),(d),(h)		2,202	1,939	Rosneft Finance SA
8.50%, 08/08/2019^(c),(d),(h)		6,605	5,818	7.25%, 02/02/2020^(f)	$	2,564		2,820
Legacy Reserves LP / Legacy Reserves				Rosneft Oil Co via Rosneft International
Finance Corp				Finance Ltd
6.63%, 12/01/2021		9,272	5,239	4.20%, 03/06/2022^(f)		4,786		4,708
8.00%, 12/01/2020		7,550	4,379	Seven Generations Energy Ltd
Lukoil International Finance BV				8.25%, 05/15/2020^(f)		1,800		1,908
3.42%, 04/24/2018^(f)		733	741	Sinopec Group Overseas Development 2012
4.75%, 11/02/2026^(d),(f),(j)		5,500	5,500	Ltd
6.13%, 11/09/2020		4,350	4,720	3.90%, 05/17/2022^(f)		11,852		12,675
MEG Energy Corp				4.88%, 05/17/2042^(f)		1,053		1,170
6.38%, 01/30/2023^(f)		3,740	3,086	Sinopec Group Overseas Development 2013
7.00%, 03/31/2024^(f)		9,415	7,720	Ltd
Milagro Oil & Gas Inc				4.38%, 10/17/2023^(f)		4,299		4,697
0.00%, 05/15/2016^(b),(c),(d)		5,765	1,499	4.38%, 10/17/2023		2,678		2,926
Oasis Petroleum Inc				Sinopec Group Overseas Development 2014
6.88%, 03/15/2022		1,726	1,709	Ltd
Pacific Exploration and Production Corp				4.38%, 04/10/2024^(f)		677		738
0.00%, 03/28/2023^(b),(f)		750	150	Sinopec Group Overseas Development 2016
0.00%, 01/19/2025^(b),(f)		6,115	1,223	Ltd
PDC Energy Inc				2.75%, 09/29/2026^(f)		4,858		4,678
6.13%, 09/15/2024^(f)		3,580	3,723	Sunoco LP / Sunoco Finance Corp
Pertamina Persero PT				6.38%, 04/01/2023		1,065		1,089
4.30%, 05/20/2023^(f)		3,253	3,371	Teine Energy Ltd
4.88%, 05/03/2022^(f)		4,348	4,640	6.88%, 09/30/2022^(f)		5,694		5,794
5.25%, 05/23/2021		3,768	4,070	Tengizchevroil Finance Co International Ltd
6.00%, 05/03/2042^(f)		4,395	4,634	4.00%, 08/15/2026^(f)		11,975		11,545
6.45%, 05/30/2044		1,880	2,071	Unit Corp
6.50%, 05/27/2041		320	359	6.63%, 05/15/2021^(c)		9,640		8,869


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Oil & Gas (continued)					Pipelines - 0.81%
Whiting Petroleum Corp					Antero Midstream Partners LP / Antero
5.00%, 03/15/2019	$	1,965	$	1,867	Midstream Finance Corp
5.75%, 03/15/2021		4,080		3,784	5.38%, 09/15/2024^(f)		$	1,240	$	1,249
YPF SA					Cheniere Corpus Christi Holdings LLC
8.50%, 03/23/2021^(f)		4,555		5,009	7.00%, 06/30/2024^(f)			8,130		8,618
8.50%, 07/28/2025^(f)		3,170		3,455	Crestwood Midstream Partners LP /
8.75%, 04/04/2024^(f)		8,487		9,344	Crestwood Midstream Finance Corp
8.88%, 12/19/2018^(f)		4,942		5,391	6.13%, 03/01/2022			3,847		3,934
Zhaikmunai LLP					6.25%, 04/01/2023			4,175		4,227
7.13%, 11/13/2019^(f)		5,058		4,666	DCP Midstream LLC
		$		461,751	5.35%, 03/15/2020^(f)			665		685
Oil & Gas Services - 0.18%					Enterprise Products Operating LLC
Bibby Offshore Services PLC					7.03%, 01/15/2068^(h)			6,150		6,493
7.50%, 06/15/2021	GBP	1,300		1,001	Gibson Energy Inc
Forum Energy Technologies Inc					6.75%, 07/15/2021^(f)			9,850		10,121
6.25%, 10/01/2021	$	9,570		9,474	Holly Energy Partners LP / Holly Energy
FTS International Inc					Finance Corp
8.35%, 06/15/2020^(f),(h)		4,050		3,919	6.00%, 08/01/2024^(f)			3,400		3,536
SESI LLC					Oleoducto Central SA
7.13%, 12/15/2021		2,640		2,574	4.00%, 05/07/2021^(f)			1,864		1,906
Weatherford International Ltd					Sabine Pass Liquefaction LLC
8.25%, 06/15/2023		2,690		2,784	5.63%, 04/15/2023			11,040		11,730
		$		19,752	5.63%, 03/01/2025			23,190		24,539
					5.88%, 06/30/2026^(f)			3,200		3,449
Packaging & Containers - 0.55%
Albea Beauty Holdings SA					6.25%, 03/15/2022			5,024		5,501
8.75%, 11/01/2019	EUR	416		478	Southern Gas Corridor CJSC
					6.88%, 03/24/2026^(f)			1,604		1,809
ARD Finance SA
7.13%, PIK 7.88%, 09/15/2023^(f),(i)	$	3,470		3,435	Summit Midstream Holdings LLC / Summit
Ardagh Packaging Finance PLC / Ardagh					Midstream Finance Corp
Holdings USA Inc					5.50%, 08/15/2022			900		873
6.75%, 05/15/2024	EUR	4,500		5,261	7.50%, 07/01/2021			786		817
7.25%, 05/15/2024^(f)	$	4,600		4,853	TransCanada PipeLines Ltd
					6.35%, 05/15/2067^(h)			800		640
Ball Corp
4.38%, 12/15/2023	EUR	2,000		2,468				$		90,127
Berry Plastics Corp					Private Equity - 0.07%
6.00%, 10/15/2022	$	4,500		4,759	Icahn Enterprises LP / Icahn Enterprises
Coveris Holdings SA					Finance Corp
7.88%, 11/01/2019^(f)		3,790		3,913	5.88%, 02/01/2022			7,750		7,372
Crown Americas LLC / Crown Americas
Capital Corp V					Real Estate - 0.26%
4.25%, 09/30/2026^(f)		1,840		1,805	Crescent Communities LLC/Crescent
Crown European Holdings SA					Ventures Inc
3.38%, 05/15/2025	EUR	2,400		2,701	8.88%, 10/15/2021^(f)			3,015		3,026
Kloeckner Pentaplast of America Inc					Deutsche Raststaetten Gruppe IV GmbH
7.13%, 11/01/2020		1,000		1,150	6.75%, 12/30/2020		EUR	1,000		1,144
OI European Group BV					Greystar Real Estate Partners LLC
6.75%, 09/15/2020		1,800		2,368	8.25%, 12/01/2022^(f)		$	2,850		3,099
Reynolds Group Issuer Inc / Reynolds Group					Kennedy-Wilson Inc
Issuer LLC / Reynolds Group Issuer					5.88%, 04/01/2024			11,400		11,528
(Luxembourg) S.A.					Longfor Properties Co Ltd
4.38%, 07/15/2021^(f),(h)	$	3,000		3,060	6.88%, 10/18/2019			2,730		2,830
5.13%, 07/15/2023^(f)		7,900		8,110	MAF Global Securities Ltd
5.75%, 10/15/2020		3,500		3,592	7.13%, 10/29/2049^(g),(h)			7,574		7,972
6.88%, 02/15/2021^(h)		5,700		5,900				$		29,599
SIG Combibloc Holdings SCA					Regional Authority - 0.23%
7.75%, 02/15/2023	EUR	4,000		4,638	Brazil Loan Trust 1
Verallia Packaging SASU					5.48%, 07/24/2023^(f)			2,788		2,808
5.13%, 08/01/2022		3,000		3,455	Province of British Columbia Canada
		$		61,946	6.60%, 01/09/2020^(d),(f)		INR	183,400		2,767
Pharmaceuticals - 0.47%					Provincia de Buenos Aires/Argentina
Capsugel SA					7.88%, 06/15/2027^(f)		$	7,375		7,578
7.00%, PIK 7.75%, 05/15/2019^(f),(i)	$	9,000		9,000	9.38%, 09/14/2018			5,805		6,313
DPx Holdings BV					9.95%, 06/09/2021^(f)			5,800		6,612
7.50%, 02/01/2022^(f)		5,570		5,863				$		26,078
Valeant Pharmaceuticals International Inc					REITS- 0.49	%
4.50%, 05/15/2023	EUR	4,800		4,020	Care Capital Properties LP
5.63%, 12/01/2021^(f)	$	3,040		2,493	5.13%, 08/15/2026^(f)			3,250		3,223
7.50%, 07/15/2021^(f)		7,755		6,902	Equinix Inc
Vizient Inc					5.38%, 01/01/2022			2,765		2,931
10.38%, 03/01/2024 ^(f)		21,540		24,017	5.38%, 04/01/2023			3,000		3,131
		$		52,295	5.88%, 01/15/2026			5,225		5,585


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
REITS (continued)					Software (continued)
ESH Hospitality Inc					Epicor / Eagle Parent 2L Note
5.25%, 05/01/2025^(f)	$	4,750	$	4,703	9.25%, 06/01/2023^(c),(d),(h)	$	15,000	$	14,017
GEO Group Inc/The					First Data Corp
5.88%, 10/15/2024		5,200		4,511	5.00%, 01/15/2024^(f)		5,150		5,228
Iron Mountain Inc					5.38%, 08/15/2023^(f)		3,450		3,571
4.38%, 06/01/2021^(f)		8,850		9,138	5.75%, 01/15/2024^(f)		12,500		12,687
6.00%, 10/01/2020^(f)		5,000		5,294	7.00%, 12/01/2023^(f)		20,880		21,872
iStar Inc					Inception Merger Sub Inc / Rackspace Hosting
6.50%, 07/01/2021		2,000		2,015	Inc
MGM Growth Properties Operating					8.63%, 11/15/2024^(f),(j)		3,200		3,200
Partnership LP / MGP Finance Co-Issuer Inc					Infor US Inc
4.50%, 09/01/2026^(f)		500		491	6.50%, 05/15/2022		20,700		21,399
5.63%, 05/01/2024^(f)		5,240		5,577	Informatica LLC
MPT Operating Partnership LP / MPT Finance					7.13%, 07/15/2023^(f)		8,342		7,779
Corp					JDA Escrow LLC / JDA Bond Finance Inc
5.25%, 08/01/2026		650		663	7.38%, 10/15/2024^(f)		13,990		14,445
6.38%, 03/01/2024		6,570		7,079	MSCI Inc
		$		54,341	4.75%, 08/01/2026^(f)		1,250		1,259
Retail - 0.86%					Open Text Corp
1011778 BC ULC / New Red Finance Inc					5.63%, 01/15/2023^(f)		9,875		10,227
6.00%, 04/01/2022^(f)		2,850		2,978	5.88%, 06/01/2026^(f)		1,650		1,757
99 Cents Only Stores LLC					PTC Inc
11.00%, 12/15/2019		1,442		851	6.00%, 05/15/2024		3,500		3,701
Carrols Restaurant Group Inc					Quintiles IMS Inc
8.00%, 05/01/2022		2,400		2,610	5.00%, 10/15/2026^(f)		3,070		3,174
Douglas GmbH					Solera LLC / Solera Finance Inc
6.25%, 07/15/2022	EUR	1,000		1,197	10.50%, 03/01/2024 ^(f)		3,900		4,359
El Puerto de Liverpool SAB de CV					Sophia LP / Sophia Finance Inc
3.88%, 10/06/2026^(f)	$	3,625		3,553	9.00%, 09/30/2023^(f)		9,250		9,713
Ferrellgas LP / Ferrellgas Finance Corp					SS&C Technologies Holdings Inc
6.50%, 05/01/2021		500		471	5.88%, 07/15/2023		9,098		9,530
6.75%, 01/15/2022		3,400		3,188	Veritas US Inc / Veritas Bermuda Ltd
6.75%, 06/15/2023^(h)		9,900		9,232	7.50%, 02/01/2023^(f)		5,130		4,899
KFC Holding Co/Pizza Hut Holdings							$		163,811
LLC/Taco Bell of America LLC					Sovereign - 14.30%
5.00%, 06/01/2024^(f)		325		338	1MDB Global Investments Ltd
L Brands Inc					4.40%, 03/09/2023		15,100		13,231
6.75%, 07/01/2036		3,650		3,874	Angolan Government International Bond
6.88%, 11/01/2035		1,550		1,643	9.50%, 11/12/2025^(f)		11,099		10,860
Landry's Inc					9.50%, 11/12/2025		496		485
6.75%, 10/15/2024^(f)		3,565		3,636	Argentina Bonar Bonds
Nathan's Famous Inc					7.00%, 04/17/2017^(c)		3,570		3,639
10.00%, 03/15/2020 ^(f)		30,360		33,206	Argentine Bonos del Tesoro
New Look Secured Issuer PLC					22.75%, 03/05/2018	ARS	115,300		7,804
6.50%, 07/01/2022	GBP	700		767	21.20%, 09/19/2018		70,950		4,928
NPC International Inc / NPC Quality Burgers					16.00%, 10/17/2023		55,000		3,653
Inc / NPC Operating Co B Inc					Argentine Republic Government International
10.50%, 01/15/2020	$	4,600		4,778	Bond
PetSmart Inc					0.00%, 12/15/2035^(b),(h)	$	22,065		2,328
7.13%, 03/15/2023^(f)		2,475		2,589	0.00%, 12/15/2035^(b),(h)	EUR	131,626		14,897
Reliance Intermediate Holdings LP					2.26%, 12/31/2038		9,785		6,789
6.50%, 04/01/2023^(f)		13,250		14,045	2.50%, 12/31/2038^(h)	$	1,474		1,008
Suburban Propane Partners LP/Suburban					7.13%, 07/06/2036^(f)		11,845		12,212
Energy Finance Corp					7.63%, 04/22/2046		248		271
5.50%, 06/01/2024		6,400		6,528	7.82%, 12/31/2033	EUR	35,788		41,998
5.75%, 03/01/2025		350		357	7.82%, 12/31/2033		13,985		16,581
		$		95,841	8.28%, 12/31/2033	$	4,330		4,711
Semiconductors - 0.14%					Bahrain Government International Bond
Micron Technology Inc					6.00%, 09/19/2044^(f)		9,100		7,690
5.50%, 02/01/2025		335		328	7.00%, 10/12/2028^(f)		4,507		4,642
5.63%, 01/15/2026^(f)		2,505		2,430	Brazil Minas SPE via State of Minas Gerais
7.50%, 09/15/2023^(f)		5,185		5,723	5.33%, 02/15/2028^(h)		24,904		24,406
NXP BV / NXP Funding LLC					Brazil Notas do Tesouro Nacional Serie F
4.13%, 06/01/2021^(f)		1,525		1,628	10.00%, 01/01/2027	BRL	70,689		20,404
Sensata Technologies UK Financing Co plc					10.00%, 01/01/2025		77,504		22,690
6.25%, 02/15/2026^(f)		5,400		5,846	10.00%, 01/01/2017		44,788		13,936
		$		15,955	Brazilian Government International Bond
Software - 1.46%					4.25%, 01/07/2025	$	6,080		6,019
Camelot Finance SA					4.88%, 01/22/2021		15,885		16,806
7.88%, 10/15/2024^(f)		7,250		7,413	5.00%, 01/27/2045		7,324		6,463
Cengage Learning Inc					5.63%, 02/21/2047		12,924		12,374
9.50%, 06/15/2024^(f)		3,800		3,581	6.00%, 04/07/2026		2,000		2,205
					7.13%, 01/20/2037		3,165		3,608


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's)		Value(000	's)	BONDS (continued)	Amount (000's) Value (000's)
Sovereign (continued)					Sovereign (continued)
CBB International Sukuk Co SPC					Indonesia Government International Bond
5.62%, 02/12/2024^(f)	$	3,970	$ 4,080		3.38%, 04/15/2023^(f)	$	11,975	$	12,081
Chile Government International Bond					3.75%, 06/14/2028^(f)	EUR	6,350		7,482
3.13%, 01/21/2026		14,570	15,240		4.13%, 01/15/2025	$	11,068		11,609
Colombia Government International Bond					4.75%, 01/08/2026		12,255		13,359
2.63%, 03/15/2023		9,700	9,385		4.75%, 01/08/2026^(f)		7,075		7,713
4.00%, 02/26/2024		8,609	8,953		5.13%, 01/15/2045		3,200		3,483
5.00%, 06/15/2045		6,875	6,978		5.25%, 01/17/2042		6,075		6,652
8.13%, 05/21/2024		4,115	5,323		5.88%, 01/15/2024		6,113		7,092
10.38%, 01/28/2033		5,359	8,306		5.88%, 01/15/2024^(f)		2,780		3,225
Colombian TES					6.63%, 02/17/2037		7,055		8,858
7.00%, 05/04/2022	COP 33,837,200		11,305		6.75%, 01/15/2044		4,016		5,294
7.50%, 08/26/2026		15,054,300	5,046		8.50%, 10/12/2035		5,482		8,109
Costa Rica Government International Bond					Indonesia Treasury Bond
4.25%, 01/26/2023	$	11,616	11,239		8.25%, 05/15/2036	IDR 307,471,000			24,477
4.38%, 04/30/2025^(f)		7,473	7,112		8.75%, 05/15/2031		88,915,000		7,615
7.00%, 04/04/2044^(f)		2,859	2,959		Iraq International Bond
7.16%, 03/12/2045		8,896	9,296		5.80%, 01/15/2028^(c)	$	13,200		10,609
Croatia Government International Bond					Ivory Coast Government International Bond
3.88%, 05/30/2022	EUR	6,500	7,700		5.75%, 12/31/2032^(h)		30,821		30,191
5.50%, 04/04/2023^(f)	$	4,487	4,891		5.75%, 12/31/2032^(f)		3,069		3,006
5.50%, 04/04/2023		4,694	5,116		Jamaica Government International Bond
6.00%, 01/26/2024^(f)		14,393	16,242		7.63%, 07/09/2025		4,736		5,541
6.38%, 03/24/2021^(f)		5,524	6,132		8.00%, 03/15/2039		2,003		2,333
6.75%, 11/05/2019^(f)		8,805	9,671		Jordan Government International Bond
6.75%, 11/05/2019		4,911	5,394		5.75%, 01/31/2027^(f),(j)		1,679		1,671
Dominican Republic International Bond					KazAgro National Management Holding JSC
5.50%, 01/27/2025		2,533	2,577		4.63%, 05/24/2023^(f)		6,055		5,661
5.88%, 04/18/2024^(f)		18,041	18,720		Kazakhstan Government International Bond
6.60%, 01/28/2024		9,218	10,002		5.13%, 07/21/2025^(f)		7,517		8,327
6.85%, 01/27/2045		400	416		Kenya Government International Bond
7.45%, 04/30/2044^(f)		8,659	9,612		5.88%, 06/24/2019^(f)		9,518		9,846
7.50%, 05/06/2021^(f)		2,600	2,861		6.88%, 06/24/2024		2,434		2,428
Ecuador Government International Bond					6.88%, 06/24/2024^(f)		1,179		1,176
7.95%, 06/20/2024^(f)		2,157	2,033		Lebanon Government International Bond
7.95%, 06/20/2024		5,963	5,620		6.25%, 11/04/2024		14,606		14,052
10.75%, 03/28/2022 ^(f)		12,675	13,403		6.60%, 11/27/2026		12,119		11,778
Egypt Government International Bond					6.65%, 02/26/2030		11,814		11,403
5.88%, 06/11/2025^(f)		12,601	11,679		6.75%, 11/29/2027		3,680		3,623
6.88%, 04/30/2040^(f)		2,250	2,045		7.05%, 11/02/2035		5,152		5,098
El Salvador Government International Bond					Lithuania Government International Bond
5.88%, 01/30/2025		2,041	2,021		6.13%, 03/09/2021^(f)		4,360		5,074
5.88%, 01/30/2025^(f)		5,190	5,138		7.38%, 02/11/2020^(f)		4,139		4,870
7.38%, 12/01/2019		381	402		Malaysia Government Bond
7.75%, 01/24/2023		7,288	7,962		3.80%, 08/17/2023	MYR	33,730		8,165
8.25%, 04/10/2032		4,231	4,611		Mexican Bonos
Emirate of Dubai Government International					5.75%, 03/05/2026^(h)	MXN	220,612		11,259
Bonds					6.50%, 06/09/2022^(h)		181,500		9,825
5.25%, 01/30/2043		3,150	3,008		7.75%, 11/13/2042^(h)		119,737		7,093
Ethiopia International Bond					10.00%, 11/20/2036 ^(h)		49,478		3,551
6.63%, 12/11/2024^(f)		3,167	2,996		Mexico Government International Bond
Export Credit Bank of Turkey					1.38%, 01/15/2025^(j)	EUR	850		903
5.38%, 11/04/2016^(f)		250	250		3.60%, 01/30/2025	$	18,254		18,619
Gabon Government International Bond					4.00%, 10/02/2023		12,470		13,106
6.38%, 12/12/2024^(f)		4,331	3,971		4.13%, 01/21/2026		8,384		8,862
6.38%, 12/12/2024		2,762	2,532		4.35%, 01/15/2047		5,960		5,638
6.95%, 06/16/2025^(f)		7,429	6,852		4.75%, 03/08/2044		8,592		8,571
Georgia Government International Bond					Mongolia Government International Bond
6.88%, 04/12/2021^(f)		4,410	4,917		4.13%, 01/05/2018^(f)		3,250		3,120
Ghana Government International Bond					Montenegro Government International Bond
7.88%, 08/07/2023^(f)		6,865	6,571		5.75%, 03/10/2021^(f)	EUR	3,528		4,064
9.25%, 09/15/2022^(f)		6,517	6,756		Mozambique International Bond
10.75%, 10/14/2030		2,480	2,920		10.50%, 01/18/2023	$	1,350		763
10.75%, 10/14/2030 ^(f)		17,493	20,595		10.50%, 01/18/2023 ^(f)		2,150		1,215
Hungary Government Bond					Namibia International Bonds
2.50%, 10/27/2021	HUF	2,675,110	9,806		5.25%, 10/29/2025^(f)		4,647		4,827
5.50%, 06/24/2025		2,200,000	9,409		Nigeria Government International Bond
Hungary Government International Bond					6.38%, 07/12/2023		1,653		1,596
5.38%, 02/21/2023	$	1,848	2,097		6.75%, 01/28/2021		1,707		1,698
5.38%, 03/25/2024		4,355	5,003		Oman Government International Bond
5.75%, 11/22/2023		567	662		4.75%, 06/15/2026^(f)		4,766		4,802
6.38%, 03/29/2021		15,548	17,937		Panama Government International Bond
					3.75%, 03/16/2025		4,586		4,861


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



	Principal					Principal
BONDS (continued)	Amount (000's)		Value(000	's)	BONDS (continued)	Amount (000's)		Value (000's)
Sovereign (continued)					Sovereign (continued)
Panama Government International					Slovakia Government International Bond
Bond (continued)					4.38%, 05/21/2022^(f)	$	848	$	959
3.88%, 03/17/2028	$	511		$ 542	Sri Lanka Government International Bond
6.70%, 01/26/2036		752	999		5.13%, 04/11/2019^(f)		248		251
8.13%, 04/28/2034		9,109	13,026		5.88%, 07/25/2022^(f)		7,756		7,902
8.88%, 09/30/2027		2,019	2,978		6.13%, 06/03/2025^(f)		179		179
9.38%, 04/01/2029		5,795	8,816		6.25%, 10/04/2020^(f)		9,050		9,457
Panama Notas del Tesoro					6.25%, 07/27/2021		19,118		20,004
4.88%, 02/05/2021		5,853	6,351		6.85%, 11/03/2025^(f)		2,390		2,516
Paraguay Government International Bond					State Oil Co of the Azerbaijan Republic
4.63%, 01/25/2023^(f)		3,834	4,001		4.75%, 03/13/2023		8,539		8,500
6.10%, 08/11/2044^(f)		3,367	3,721		6.95%, 03/18/2030		7,566		8,205
Perusahaan Penerbit SBSN Indonesia III					Turkey Government International Bond
4.35%, 09/10/2024^(f)		1,185	1,244		3.25%, 03/23/2023		9,074		8,448
4.55%, 03/29/2026^(f)		7,385	7,773		4.88%, 04/16/2043		4,503		4,001
Peruvian Government International Bond					5.13%, 03/25/2022		2,916		3,012
8.20%, 08/12/2026^(f)	PEN	24,000	8,451		5.63%, 03/30/2021		2,779		2,935
8.75%, 11/21/2033	$	1,575	2,485		5.75%, 03/22/2024		3,923		4,170
Philippine Government International Bond					6.00%, 01/14/2041		788		813
4.95%, 01/15/2021	PHP	163,000	3,459		6.63%, 02/17/2045		2,213		2,481
Qatar Government International Bond					6.88%, 03/17/2036		6,183		7,029
4.63%, 06/02/2046^(f)	$	6,870	7,232		7.00%, 03/11/2019		5,315		5,747
Republic of Angola Via Northern Lights III					7.00%, 06/05/2020		3,924		4,313
BV					7.38%, 02/05/2025		4,798		5,620
7.00%, 08/16/2019		8,736	8,728		7.50%, 11/07/2019		9,493		10,538
Republic of Azerbaijan International Bond					8.00%, 02/14/2034		6,768		8,511
4.75%, 03/18/2024^(f)		10,883	11,241		Ukraine Government International Bond
Republic of Cameroon International Bond					7.75%, 09/01/2019^(f)		279		278
9.50%, 11/19/2025^(f)		1,602	1,783		7.75%, 09/01/2020		10,900		10,802
Republic of Poland Government Bond					7.75%, 09/01/2020^(f)		15,313		15,176
2.50%, 07/25/2026	PLN	24,000	5,805		7.75%, 09/01/2021^(f)		6,227		6,134
Republic of Poland Government International					7.75%, 09/01/2021		8,670		8,540
Bond					7.75%, 09/01/2022^(f)		16,476		16,105
3.00%, 03/17/2023	$	65	67		7.75%, 09/01/2023^(f)		4,382		4,251
4.00%, 01/22/2024		2,938	3,206		7.75%, 09/01/2024^(f)		5,743		5,529
5.00%, 03/23/2022		9,616	10,890		7.75%, 09/01/2025^(f)		2,046		1,958
Republic of South Africa Government Bond					Ukreximbank Via Biz Finance PLC
7.00%, 02/28/2031	ZAR	140,000	8,638		9.63%, 04/27/2022		7,515		7,410
8.75%, 01/31/2044		83,017	5,762		Venezuela Government International Bond
Republic of South Africa Government					6.00%, 12/09/2020		5,000		2,220
International Bond					7.65%, 04/21/2025		10,114		4,369
4.30%, 10/12/2028	$	5,940	5,760		7.75%, 10/13/2019		26,078		13,235
4.67%, 01/17/2024		6,069	6,360		8.25%, 10/13/2024		7,345		3,239
4.88%, 04/14/2026		1,387	1,439		9.38%, 01/13/2034		2,636		1,223
5.00%, 10/12/2046		9,810	9,523		13.63%, 08/15/2018 ^(c)		6,000		4,080
5.88%, 09/16/2025		13,379	15,010		Zambia Government International Bond
Republic of Suriname					5.38%, 09/20/2022		5,356		4,656
9.25%, 10/26/2026^(f)		3,577	3,738		8.50%, 04/14/2024^(f)		3,315		3,226
Romania Government Bond					8.97%, 07/30/2027		200		196
5.80%, 07/26/2027	RON	22,300	6,566				$		1,601,020
Romanian Government International Bond					Student Loan Asset Backed Securities - 0.04%
4.38%, 08/22/2023	$	1,044	1,134		SMB Private Education Loan Trust 2016-B
Russian Federal Bond - OFZ					1.18%, 11/15/2023^(f),(h)		4,320		4,326
6.98%, 08/16/2023^(h)	RUB	291,100	4,240
7.05%, 01/19/2028^(h)		1,007,279	14,338		Supranational Bank - 0.43%
7.50%, 02/27/2019^(h)		922,705	14,243		Banque Ouest Africaine de Developpement
Russian Foreign Bond - Eurobond					5.50%, 05/06/2021^(f)		10,641		11,273
4.50%, 04/04/2022	$	200	210		Black Sea Trade & Development Bank
4.75%, 05/27/2026		11,000	11,642		4.88%, 05/06/2021^(f)		6,330		6,710
4.88%, 09/16/2023		15,800	16,985		Eastern and Southern African Trade and
5.00%, 04/29/2020		6,500	6,935		Development Bank
5.00%, 04/29/2020^(f)		14,794	15,783		6.38%, 12/06/2018		7,070		7,390
5.63%, 04/04/2042		13,200	14,568		European Bank for Reconstruction &
Saudi Government International Bond					Development
3.25%, 10/26/2026^(f)		8,196	8,082		5.63%, 03/15/2017	INR	166,650		2,484
4.50%, 10/26/2046^(f)		12,715	12,508		7.38%, 04/15/2019	IDR	60,000,000		4,652
Serbia International Bond					Inter-American Development Bank
4.88%, 02/25/2020		6,749	6,989		7.25%, 07/17/2017		75,700,000		5,801
5.88%, 12/03/2018		1,014	1,073		International Finance Corp
5.88%, 12/03/2018^(f)		9,469	10,022		6.45%, 10/30/2018	INR	424,170		6,366
7.25%, 09/28/2021		3,811	4,377		7.75%, 12/03/2016		264,000		3,956
7.25%, 09/28/2021^(f)		4,715	5,415				$		48,632


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



		Principal						Principal
BONDS (continued)		Amount (000's)		Value(000	's)	BONDS (continued)		Amount (000's)		Value(000			's)
Telecommunications - 1.94%						Telecommunications (continued)
Altice Luxembourg SA						Wind Acquisition Finance SA
7.25%, 05/15/2022		EUR	4,700	$ 5,469		4.75%, 07/15/2020^(f)		$	1,200		$	1,206
CenturyLink Inc						7.00%, 04/23/2021		EUR	4,150			4,744
5.63%, 04/01/2020		$	2,450	2,615		7.00%, 04/23/2021^(f)			2,790			3,189
5.63%, 04/01/2025			1,320	1,238		7.38%, 04/23/2021^(f)		$	6,670			6,853
7.50%, 04/01/2024			1,265	1,317						$		217,255
Colombia Telecomunicaciones SA ESP						Transportation - 0.39%
8.50%, 12/29/2049^(f),(g),(h)			3,909	3,463		BNSF Funding Trust I
Columbus Cable Barbados Ltd						6.61%, 12/15/2055^(h)			4,610			5,307
7.38%, 03/30/2021^(f)			8,518	9,114		Lima Metro Line 2 Finance Ltd
Comcel Trust via Comunicaciones Celulares						5.88%, 07/05/2034^(f)			3,075			3,406
SA						Navios Maritime Acquisition Corp / Navios
6.88%, 02/06/2024^(f)			4,980	5,092		Acquisition Finance US Inc
CommScope Technologies Finance LLC						8.13%, 11/15/2021^(f)			8,228			6,212
6.00%, 06/15/2025^(f)			13,625	14,307		Pelabuhan Indonesia II PT
Digicel Group Ltd						4.25%, 05/05/2025^(f)			10,620			10,660
7.13%, 04/01/2022^(f)			27,475	21,766		5.38%, 05/05/2045^(f)			8,300			8,318
8.25%, 09/30/2020^(f)			6,084	5,384		Pelabuhan Indonesia III Persero PT
Frontier Communications Corp						4.88%, 10/01/2024^(f)			1,815			1,925
7.13%, 01/15/2023			1,700	1,529		XPO Logistics Inc
8.88%, 09/15/2020			3,200	3,400		5.75%, 06/15/2021		EUR	3,675			4,203
10.50%, 09/15/2022			4,745	4,935		6.13%, 09/01/2023^(f)		$	3,000			3,086
GTH Finance BV										$		43,117
6.25%, 04/26/2020^(f)			1,245	1,300
						TOTAL BONDS				$		7,392,739
7.25%, 04/26/2023^(f)			919	978
								Principal
Hughes Satellite Systems Corp						CONVERTIBLE BONDS - 0.19%		Amount (000's)		Value(000			's)
5.25%, 08/01/2026^(f)			1,000	985
						Banks- 0.01	%
7.63%, 06/15/2021			8,800	9,647		ING Groep NV
Intelsat Jackson Holdings SA						6.50%, 12/29/2049^(g),(h)			1,000			988
8.00%, 02/15/2024^(f)			2,870	2,884
Interoute Finco PLC						Coal- 0.13	%
7.38%, 10/15/2020^(f)		EUR	1,250	1,489
						Foresight Energy LLC / Foresight Energy
Koninklijke KPN NV						Finance Corp

7.00%, 03/28/2073(f),(h)		$	400	438		15.00%, PIK 15.00%, 10/03/2017⁽ⁱ⁾			15,379			14,687
7.00%, 03/28/2073^(h)			2,000	2,188
Level 3 Financing Inc						Mining - 0.01%
5.13%, 05/01/2023			3,600	3,636		Mirabela Nickel Ltd
6.13%, 01/15/2021			3,950	4,078		9.50%, PIK 9.50%, 06/24/2019^{(c),(d),(f),(i)}			6,966			1,393
Matterhorn Telecom Holding SA
4.88%, 05/01/2023		EUR	4,595	4,986		Oil & Gas - 0.02%
Millicom International Cellular SA						SandRidge Energy Inc
	(f)
6.63%, 10/15/2021		$	3,631	3,799		0.00%, 10/04/2020^(b),(c)			1,802			2,207
MTN Mauritius Investment Ltd
6.50%, 10/13/2026^(f)			6,775	6,872
						Software - 0.02%
Qualitytech LP/QTS Finance Corp						Aspect Software Inc
5.88%, 08/01/2022			6,170	6,340		3.00%, PIK 3.00%, 05/25/2023^(d),(i)			3,634			1,912
Sixsigma Networks Mexico SA de CV
8.25%, 11/07/2021^(f)			2,421	2,367
						TOTAL CONVERTIBLE BONDS				$		21,187
Sprint Communications Inc
						CREDIT LINKED STRUCTURED NOTES		Principal
6.00%, 11/15/2022			3,475	3,238
7.00%, 03/01/2020^(f)			3,500	3,806		- 0.03	%	Amount (000's)		Value(000			's)
						Sovereign - 0.03%
8.38%, 08/15/2017			8,399	8,745
9.00%, 11/15/2018^(f)			4,180	4,598		Republic of Iraq - Merrill Lynch
						2.56%, 01/07/2028^(c),(d),(h)		JPY	514,581			3,327
Sprint Corp
7.63%, 02/15/2025			650	629
						TOTAL CREDIT LINKED STRUCTURED NOTES				$		3,327
7.88%, 09/15/2023			2,100	2,079
Sprint Spectrum Co LLC / Sprint Spectrum Co						SENIOR FLOATING RATE INTERESTS -		Principal
II LLC / Sprint Spectrum Co III LLC						7.18	%	Amount (000's)		Value(000			's)
3.36%, 03/20/2023^(f)			4,500	4,511		Agriculture - 0.33%
Telecom Italia SpA/Milano						North Atlantic Trading Co Inc, Term Loan B
						9.00%, 01/13/2020^(h)		$	7,030	$		6,960
3.25%, 01/16/2023		EUR	3,750	4,331
3.63%, 05/25/2026			1,000	1,132		NVA Holdings Inc/United States, Term Loan
Telefonica Celular del Paraguay SA						8.00%, 08/08/2022^(h)			11,521			11,520
6.75%, 12/13/2022 (f)		$	3,455	3,602		8.00%, 08/08/2022^(h)			17,979			17,979
Telefonica Europe BV										$		36,459
4.20%, 12/29/2049^(g),(h)		EUR	4,000	4,489		Automobile Manufacturers - 0.03%
T-Mobile USA Inc						Navistar Inc, Term Loan B
						6.50%, 08/06/2020^(h)			3,573			3,592
6.00%, 03/01/2023		$	5,310	5,589
6.00%, 04/15/2024			6,250	6,648
6.46%, 04/28/2019			530	539		Automobile Parts & Equipment - 0.08%
6.50%, 01/15/2026			9,800	10,743		BBB Industries US Holdings Inc, Term Loan
ViaSat Inc						B
						6.00%, 11/03/2021^(h)			2,168			2,171
6.88%, 06/15/2020			4,800	4,968


Schedule of Investments
Global Diversified Income Fund
October 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 Parts & Equipment (continued)					Environmental Control - 0.12%
Mavis Tire Supply LLC, Term Loan C					Infiltrator Systems Integrated LLC, Term
6.25%, 11/02/2020^(c),(d),(h)	$	7,061	$	6,389	Loan
		$		8,560	9.75%, 05/19/2023^(c),(h)		$	14,000	$	14,000
Beverages - 0.01%
Arctic Glacier USA Inc, Term Loan B					Food- 0.05	%
6.00%, 05/10/2019^(h)		1,240		1,222	American Seafoods Group LLC, Term Loan
					6.02%, 08/19/2021^(c),(h)			3,179		3,164
Building Materials - 0.04%					CTI Foods Holding Co LLC, Term Loan
GYP Holdings III Corp, Term Loan					8.25%, 06/28/2021^(h)			3,360		2,990
4.50%, 04/01/2021^(h)		4,402		4,396				$		6,154
					Healthcare - Products - 0.26%
Chemicals - 0.11%					CareCore National LLC, Term Loan
Allnex USA Inc, Term Loan					5.50%, 02/12/2021^(h)			13,372		13,138
5.13%, 06/02/2023^(h)		428		431	5.50%, 03/05/2021^(h)			4,718		4,636
5.13%, 06/02/2023^(h)		322		325	Hanger Inc, Term Loan
Royal Holdings Inc/IN, Term Loan					11.50%, 08/01/2019 ^(h)			11,370		11,341
8.50%, 06/12/2023^(h)		11,870		11,633				$		29,115
		$		12,389	Healthcare - Services - 0.83%
Commercial Services - 0.04%					Heartland Dental LLC, Term Loan
CHG Healthcare Services Inc, Term Loan B					9.75%, 06/20/2019^(h)			37,000		36,260
4.75%, 06/07/2023^(h)		1,891		1,904	MPH Acquisition Holdings LLC, Term Loan
Eagle Bidco Ltd, Term Loan B					B
4.94%, 05/12/2022^(h)	GBP	600		732	5.00%, 05/25/2023^(h)			2,248		2,272
Washington Inventory Service, Term Loan					Opal Acquisition Inc, Term Loan B
0.00%, 06/18/2019^(b),(c),(h)	$	6,800		1,360	5.00%, 11/20/2020^(h)			15,425		14,178
		$		3,996	US Renal Care Inc, Term Loan
Computers - 0.03%					9.00%, 11/17/2023^(h)			11,400		10,887
Netsmart Inc, Term Loan					9.00%, 11/17/2023^(h)			31,120		29,720
5.75%, 04/19/2023^(h)		3,192		3,198				$		93,317
					Holding Companies - Diversified - 0.07%
Distribution & Wholesale - 0.05%					Spirit Retail Bidco Ltd, Term Loan
ABB Con-Cise Optical Group LLC, Term					4.87%, 07/01/2021^(c),(d),(h)			7,730		7,575
Loan B
6.00%, 06/15/2023^(h)		2,800		2,807	Home Furnishings - 0.00%
HBC Holdings LLC, Term Loan B					Targus Group International Inc, PIK Term
6.75%, 03/30/2020^(c),(h)		3,255		3,174	Loan
		$		5,981	14.75%, PIK 15.00%, 12/31/2019^(c),(h),(i)			250		195
Diversified Financial Services - 0.02%					14.75%, PIK 15.00%, 12/31/2019^(c),(h),(i)			83		82
LPL Holdings Inc, Term Loan B					Targus Group International Inc, Term Loan
4.75%, 11/21/2022^(h)		1,886		1,897	0.00%, 11/02/2016^(b),(c),(d)			880		—
								$		277
Electric - 0.08%					Insurance - 0.64%
Invenergy Thermal Operating I LLC, Term					Asurion LLC, Term Loan
Loan B					8.50%, 02/19/2021^(h)			15,775		15,887
6.50%, 10/19/2022^(h)		6,008		5,707	8.50%, 02/19/2021^(h)			33,014		33,248
Panda Liberty LLC, Term Loan B1					Hyperion Insurance Group Ltd, Term Loan B
7.50%, 08/21/2020^(h)		2,286		2,243	5.50%, 04/29/2022^(h)			5,595		5,499
Panda Temple Power II LLC, Term Loan B					Lonestar Intermediate Super Holdings LLC,
7.25%, 04/03/2019^(h)		844		772	PIK Term Loan
		$		8,722	10.00%, PIK 0.75%, 08/10/2021 ^(h),(i)			14,460		14,556
Electronics - 0.23%					10.00%, PIK 0.75%, 08/10/2021 ^(h),(i)			2,725		2,743
CPI Buyer LLC, Term Loan								$		71,933
8.50%, 07/18/2022^(c),(h)		10,160		9,449	Internet - 0.47%
Linxens France SA, Term Loan					Accuvant Inc, Term Loan
9.50%, 07/31/2023^(h)		15,795		15,755	10.00%, 01/30/2023 ^(h)			27,705		27,474
		$		25,204	Accuvant Inc, Term Loan B
Engineering & Construction - 0.00%					6.25%, 01/28/2022^(h)			3,940		3,946
NANA Development Corp, Term Loan B					Active Network Inc/The, Term Loan B
8.00%, 03/15/2018^(c),(h)		450		425	5.50%, 11/13/2020^(h)			1,560		1,548
					Ancestry.com Operations Inc, Term Loan
Entertainment - 0.38%					0.00%, 10/14/2024^(h),(l)			12,540		12,697
Cyan Blue Holdco 3 Ltd, Term Loan					EIG Investors Corp, Term Loan B
6.15%, 02/25/2022^(h)	GBP	7,700		9,479	6.48%, 11/09/2019^(h)			3,469		3,370
Delta 2 Lux Sarl, Term Loan B					ProQuest LLC, Term Loan B
7.75%, 07/29/2022^(h)	$	28,834		29,027	5.75%, 10/24/2021^(h)			3,447		3,443
Lions Gate Entertainment Corp, Term Loan								$		52,478
B					Leisure Products & Services - 0.11%
0.00%, 10/13/2023^(h),(l)		3,895		3,888	Equinox Holdings Inc, Term Loan
		$		42,394	9.75%, 05/16/2020^(h)			12,500		12,484


Schedule of Investments
Global Diversified Income Fund
October 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)
	Lodging - 0.18%						Retail (continued)
	Parq Holdings LP, Term Loan						Sears Roebuck Acceptance Corp, Term Loan
	8.50%, 12/04/2020^(h)		$	21,521	$	20,714	B
							5.50%, 06/30/2018^(h)	$	9,287	$	9,083
	Machinery - Diversified - 0.13%						SRS Distribution Inc, Term Loan
	CPM Holdings Inc, Term Loan						9.75%, 02/25/2023^(h)		4,170		4,222
	10.25%, 12/02/2022 ^(h)			15,470		14,542				$	46,794
							Semiconductors - 0.05%
	Media- 0.05	%					Avago Technologies Cayman Finance Ltd,
	McGraw-Hill Global Education Holdings						Term Loan B3
	LLC, Term Loan						3.53%, 02/01/2023^(h)		2,494		2,518
	5.00%, 05/04/2022^(h)			2,594		2,586	3.65%, 02/01/2023^(h)		2,834		2,862
	SFR Group SA, Term Loan B									$	5,380
	5.14%, 01/08/2024^(h)			2,488		2,508
							Software - 0.82%
				$		5,094	Air Newco LLC, Term Loan
	Mining - 0.14%						10.50%, 01/31/2023 ^(h)		5,100		4,701
	Fairmount Santrol Inc, Term Loan B2						Air Newco LLC, Term Loan B
	4.50%, 09/05/2019^(h)			16,072		15,218	6.50%, 01/31/2022^(h)		4,531		4,323
	FMG Resources August 2006 Pty Ltd, Term						Aspect Software Inc, Term Loan EXIT
	Loan B						10.50%, 05/25/2020 ^(h)		231		229
	3.75%, 06/30/2019^(h)			753		753	Cengage Learning Inc, Term Loan B
				$		15,971	5.25%, 06/07/2023^(h)		2,945		2,876
	Miscellaneous Manufacturers - 0.06%						Evergreen Skills Lux Sarl, Term Loan
	Survitec Group Ltd, Term Loan B						5.76%, 04/23/2021^(h)		21,105		18,766
	5.25%, 02/24/2022^(c),(h)		GBP	1,100		1,309	5.84%, 04/28/2021^(h)		1,612		1,433
	UTEX Industries Inc, Term Loan						9.25%, 04/28/2022^(h)		20,327		13,619
	8.25%, 05/16/2022^(c),(h)		$	4,150		2,096	Informatica LLC, Term Loan B
	UTEX Industries Inc, Term Loan B						4.50%, 06/03/2022^(h)		1,980		1,943
	5.00%, 05/14/2021^(h)			3,324		2,820	Kronos Inc/MA, Term Loan
				$		6,225	0.00%, 10/18/2024^(h),(l)		3,550		3,656
	Oil & Gas - 0.09%						MA FinanceCo LLC, Term Loan B2
	California Resources Corp, Term Loan						4.51%, 11/20/2021^(h)		1,518		1,522
	11.37%, 12/31/2021 ^(h)			3,215		3,452	Magic Newco LLC, Term Loan
	Chesapeake Energy Corp, Term Loan 1.5						12.00%, 06/12/2019 ^(h)		10,000		10,420
	8.50%, 08/17/2021^(h)			4,180		4,465	SolarWinds Holdings Inc, Term Loan B
	Petrochoice Holdings Inc, Term Loan						5.50%, 02/03/2023^(h)		2,195		2,204
	6.00%, 08/19/2022^(h)			2,475		2,487	5.50%, 02/03/2023^(h)		4,429		4,448
				$		10,404	Solera LLC, Term Loan B
							5.75%, 03/03/2023^(h)		6,418		6,485
	Packaging & Containers - 0.21%
	Berlin Packaging LLC, Term Loan						Veritas US Inc, Term Loan B1
	7.75%, 09/23/2022^(h)			17,050		17,167	6.63%, 01/27/2023^(h)		16,318		15,191
	FPC Holdings Inc, Term Loan									$	91,816
	9.25%, 05/15/2020^(c),(h)			9,400		6,543	Sovereign - 0.18%
				$		23,710	Brazil ECA, Term Loan
							6.25%, 01/10/2018^(c),(d),(h)		10,000		10,214
	Pharmaceuticals - 0.72%
							6.25%, 01/10/2018^(d),(h)		10,000		10,214
	9089969 Canada Inc, Term Loan A2
	6.00%, 12/23/2021^(h)			904		901				$	20,428
	BioScrip Inc, Delay-Draw Term Loan B-DD						Storage & Warehousing - 0.03%
	6.50%, 07/22/2020^(h)			6,120		6,002	Americold Realty Trust Inc, Term Loan B
	BioScrip Inc, Term Loan B						5.75%, 12/01/2022^(h)		2,978		3,009
	6.50%, 06/05/2020^(h)			10,201		10,003
	Genoa a QoL Healthcare Co LLC, Term						Telecommunications - 0.06%
	Loan						LTS Buyer LLC, Term Loan
	0.00%, 10/25/2024^(h),(l)			18,060		17,970	8.00%, 03/28/2021^(h)		6,797		6,802
	Lanai Holdings III Inc, Term Loan
	9.50%, 08/14/2023^(c),(h)			25,190		24,434	Transportation - 0.06%
	Packaging Coordinators Midco Inc, Term						SIRVA Worldwide Inc, Term Loan
	Loan						7.50%, 03/27/2019^(c),(h)		6,649		6,599
	9.75%, 06/29/2024^(h)			21,670		21,237
				$		80,547	TOTAL SENIOR FLOATING RATE INTERESTS			$	803,803
	Retail - 0.42%						U.S. GOVERNMENT & GOVERNMENT		Principal
	99 Cents Only Stores LLC, Term Loan B2						AGENCY OBLIGATIONS - 0.87%	Amount (000's)		Value (000's)
	4.50%, 01/11/2019^(h)			9,582		7,444	Federal Home Loan Mortgage Corporation (FHLMC) - 0.06%
	Belk Inc, Term Loan B						5.00%, 12/01/2035	$	5,930	$	6,706
	5.75%, 12/12/2022^(h)			5,672		5,094
	Nautilus Merger Sub Inc, Term Loan						Federal National Mortgage Association (FNMA) - 0.72%
	6.75%, 03/11/2022^(h)			13,312		12,696	2.50%, 11/01/2031^(m)		10,000		10,290
	Nellson Nutraceutical LLC, Term Loan A1						3.00%, 11/01/2046^(m)		10,000		10,295
	6.00%, 12/23/2021^(h)			1,455		1,452	3.50%, 01/01/2043		5,878		6,194
	Petco Animal Supplies Inc, Term Loan B1						3.50%, 07/01/2045		9,085		9,590
	5.00%, 01/26/2023^(h)			5,062		5,102	3.50%, 09/01/2045⁽ⁿ⁾		5,969		6,289
	Petco Animal Supplies Inc, Term Loan B2						3.50%, 04/01/2046		9,453		9,926
	5.56%, 01/26/2023^(h)			1,687		1,701	4.00%, 04/01/2046		14,457		15,601


Schedule of Investments
Global Diversified Income Fund
October 31, 2016



U.S. GOVERNMENT & GOVERNMENT			Principal					Portfolio Summary (unaudited)
AGENCY OBLIGATIONS (continued)		Amount (000's)			Value(000		's)	Country	Percent
Federal National Mortgage Association (FNMA) (continued)								United States	60.90	%
	4.50%, 01/01/2044	$	2,144		$	2,356		Luxembourg	2.51	%
	4.50%, 02/01/2044		4,118			4,531		United Kingdom	2.43	%
	5.00%, 03/01/2039		4,959			5,637		Netherlands	2.28	%
					$	80,709		Canada	2.18	%
Government National Mortgage Association (GNMA) - 0.09%								Mexico	2.00	%
	3.00%, 11/01/2046		10,000			10,418		Argentina	1.62	%
								Indonesia	1.61	%
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY								Japan	1.58	%
OBLIGATIONS					$	97,833		France	1.39	%
TOTAL PURCHASED OPTIONS - 0.02%					$	1,761		Brazil	1.24	%
Total Investments				$	11,201,195			Cayman Islands	1.17	%
Other Assets and Liabilities - (0.06)%					$	(6,371	)	Turkey	1.04	%
TOTAL NET ASSETS - 100.00%				$	11,194,824			Germany	0.91	%
								Russian Federation	0.89	%
								Australia	0.87	%
(a)	Security or a portion of the security was pledged to cover margin							Colombia	0.73	%
	requirements for options contracts. At the end of the period, the value of							Hong Kong	0.68	%
	these securities totaled $303,941 or 2.72% of net assets.							Ukraine	0.62	%
(b)	Non-Income Producing Security							South Africa	0.56	%
(c)	Security is Illiquid. At the end of the period, the value of these securities							Bermuda	0.52	%
	totaled $263,892 or 2.36% of net assets.							Croatia	0.49	%
(d)	Fair value of these investments is determined in good faith by the Manager							Supranational	0.49	%
	under procedures established and periodically reviewed by the Board of							Venezuela	0.48	%
	Directors. At the end of the period, the fair value of these securities totaled							Spain	0.48	%
	$127,597 or 1.14% of net assets.							Dominican Republic	0.44	%
(e)	Restricted Security. Please see Restricted Security Sub-Schedule for more							Kazakhstan	0.44	%
	information.							Switzerland	0.43	%
(f)	Security exempt from registration under Rule 144A of the Securities Act of							Lebanon	0.42	%
	1933. These securities may be resold in transactions exempt from							Chile	0.41	%
	registration, normally to qualified institutional buyers. At the end of the							Hungary	0.40	%
	period, the value of these securities totaled $3,589,531 or 32.06% of net							Panama	0.40	%
	assets.							Sri Lanka	0.37	%
(g)	Perpetual security. Perpetual securities pay an indefinite stream of							Virgin Islands, British	0.37	%
	interest, but they may be called by the issuer at an earlier date.							Jersey, Channel Islands	0.35	%
(h)	Variable Rate. Rate shown is in effect at October 31, 2016.							Italy	0.33	%
(i)	Payment in kind; the issuer has the option of paying additional securities							Ghana	0.33	%
	in lieu of cash.							Costa Rica	0.31	%
(j)	Security purchased on a when-issued basis.							Cote d'Ivoire	0.30	%
(k)	Security is an Interest Only Strip.							Azerbaijan	0.27	%
(l)	This Senior Floating Rate Note will settle after October 31, 2016, at which							Serbia	0.25	%
	time the interest rate will be determined.							Taiwan, Province Of China	0.24	%
(m)	Security was purchased in a "to-be-announced" ("TBA") transaction. See							Singapore	0.24	%
	Notes to Financial Statements for additional information.							Sweden	0.21	%
(n)	Security or a portion of the security was pledged to cover margin							Ecuador	0.19	%
	requirements for futures contracts. At the end of the period, the value of							Saudi Arabia	0.18	%
	these securities totaled $228 or 0.00% of net assets.							Poland	0.18	%
								El Salvador	0.18	%
								Peru	0.17	%
								Ireland	0.16	%
								Bahrain	0.15	%
								Austria	0.15	%
								Malaysia	0.13	%
								Marshall Islands	0.12	%
								Kenya	0.12	%
								Finland	0.12	%
								China	0.12	%
								Iraq	0.12	%
								Egypt	0.12	%
								Gabon	0.12	%
								Paraguay	0.10	%
								Angola	0.10	%
								Lithuania	0.09	%
								Jersey	0.08	%
								Barbados	0.08	%
								Zambia	0.07	%
								Romania	0.07	%
								Mauritius	0.07	%
								Jamaica	0.07	%
								Korea, Republic Of	0.07	%
								Qatar	0.06	%
								India	0.05	%
								Montenegro	0.04	%
								Thailand	0.04	%


Schedule of Investments
Global Diversified Income Fund
October 31, 2016


Portfolio Summary (unaudited) (continued)
Country				Percent
Guernsey				0.04	%
Georgia				0.04	%
Oman				0.04	%
Namibia				0.04	%
Nigeria				0.03	%
Belgium				0.03	%
Norway				0.03	%
Mongolia				0.03	%
United Arab Emirates				0.03	%
Ethiopia				0.03	%
Philippines				0.03	%
Trinidad And Tobago				0.03	%
Suriname				0.03	%
Mozambique				0.02	%
Cameroon				0.02	%
Purchased Options				0.02	%
Denmark				0.02	%
Morocco				0.01	%
Jordan				0.01	%
New Zealand				0.01	%
Israel				0.01	%
Slovakia				0.01	%
Other Assets and Liabilities				(0.06	)%
TOTAL NET ASSETS				100.00	%

Restricted Securities

Security Name				Trade Date				Cost		Value				Percent of Net Assets
Cengage Learning Holdings II Inc				03/31/2014		$		1,099		$	672							0.01	%

Amounts in thousands
Credit Default Swaps

Sell Protection
		Implied
		Credit Spread (Pay)/								Upfront			Unrealized
		as of October 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
JP Morgan Chase	Mexico Government	2.18	%	1.00	%	06/20/2026	$	5,300	$	(499	)	$		(12	)	$	— $	(511	)
	International Bond
Total								$		(499	)	$		(12	)	$	— $	(511	)


Schedule of Investments
Global Diversified Income Fund
October 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		11/30/2016	EUR	20,801,542		$	22,646	$	22,857		$		—		$	(211	)
Barclays Bank PLC		11/08/2016	COP	21,161,766,049			7,139		7,032				107			—
Goldman Sachs & Co		12/30/2016	CAD	3,600,000			2,725		2,686				39			—
Goldman Sachs & Co		12/30/2016	EUR	19,850,000			22,352		21,848				504			—
Goldman Sachs & Co		12/30/2016	GBP	12,350,000			16,110		15,136				974			—
HSBC Securities Inc		11/30/2016	GBP	6,966,861			8,517		8,531				—			(14	)
JPMorgan Chase		11/07/2016	EUR	209,952,037			231,131		230,516				629			(14	)
JPMorgan Chase		11/10/2016	EUR	106,025,828			118,129		116,423				1,706			—
JPMorgan Chase		11/10/2016	GBP	29,899,393			38,970		36,600				2,370			—
JPMorgan Chase		11/10/2016	JPY	354,377,400			3,502		3,380				122			—
JPMorgan Chase		12/09/2016	EUR	75,309,300			82,571		82,790				—			(219	)
JPMorgan Chase		12/09/2016	GBP	23,389,400			28,580		28,646				—			(66	)
JPMorgan Chase		12/09/2016	JPY	358,126,500			3,413		3,421				—			(8	)
Standard Chartered Bank, Hong Kong		11/30/2016	MXN	130,289,094			6,939		6,871				68			—
Toronton Dominion Bank		11/30/2016	EUR	2,192,866			2,398		2,410				—			(12	)
Toronton Dominion Bank		11/30/2016	HUF	5,538,982,253			19,546		19,708				—			(162	)
Total											$		6,519		$	(706	)

Amounts in thousands except contracts


Futures Contracts

															Unrealized
Type			Long/Short		Contracts	Notional Value			Fair Value				Appreciation/(Depreciation)
US 2 Year Note; December 2016			Short		275	$	60,012		$		59,988			$		24
US 5 Year Note; December 2016			Short		75		9,092				9,060					32
Total													$			56

Amounts in thousands except contracts


Options

							Upfront Premiums									Unrealized
Purchased Options Outstanding			Exercise Price	Expiration Date	Contracts		Paid/(Received)				Fair Value		Appreciation/(Depreciation)
Call - Health Care Select Sector SPDR Fund	$		72.00	11/21/2016		10,000	$		97	$	85		$			(12	)
Call - S&P 500 Index	$	2,210.00		11/14/2016		544			196		35					(161	)
Call - S&P 500 Index	$	2,200.00		11/28/2016		530			178		167					(11	)
Call - S&P 500 Index	$	2,205.00		11/07/2016		670			267		—					(267	)
Call - S&P 500 Index	$	2,230.00		11/21/2016		244			22		8					(14	)
Put - S&P 500 Index	$	2,085.00		11/07/2016		670			691		145					(546	)
Put - S&P 500 Index	$	2,040.00		11/28/2016		530			692		676					(16	)
Put - S&P 500 Index	$	2,035.00		11/21/2016		244			181		250					69
Put - S&P 500 Index	$	2,030.00		11/14/2016		544			512		395					(117	)
Total							$		2,836	$	1,761		$		(1,075		)

							Upfront Premiums								Unrealized
Written Options Outstanding			Exercise Price	Expiration Date	Contracts		Paid/(Received)				Fair Value		Appreciation/(Depreciation)
Call - Consumer Staples Select Sector SPDR	$		53.00	12/19/2016		35,225	$		(5,000	) $	(3,063	)	$		1,937
Fund
Call - Energy Select Sector SPDR Fund	$		68.00	12/19/2016		3,928			(1,015	)	(981	)				34
Call - Health Care Select Sector SPDR Fund	$		68.00	11/21/2016		10,000			(1,163	)	(1,116	)				47
Call - iShares MSCI EAFE ETF	$		57.00	11/21/2016		28,000			(7,923	)	(3,476	)			4,447
Call - iShares MSCI Emerging Markets ETF	$		37.50	11/21/2016		58,448			(6,724	)	(3,609	)			3,115
Call - iShares Russell 2000 ETF	$	121.00		12/19/2016		16,850			(7,363	)	(3,449	)			3,914
Call - S&P 500 Index	$	2,195.00		11/07/2016		670			(442	)	(1	)				441
Call - S&P 500 Index	$	2,190.00		11/14/2016		544			(446	)	(131	)				315
Call - S&P 500 Index	$	2,180.00		11/28/2016		530			(397	)	(391	)				6
Call - S&P 500 Index	$	2,190.00		11/21/2016		244			(158	)	(85	)				73
Call - S&P 500 Index	$	2,180.00		11/21/2016		1,000			(3,030	)	(579	)			2,451
Call - SPDR EURO STOXX 50 ETF	$		32.00	11/21/2016		2,879			(293	)	(305	)				(12	)
Call - SPDR S&P500 ETF Trust	$	214.00		11/21/2016		10,000			(2,393	)	(2,295	)				98
Put - S&P 500 Index	$	2,060.00		11/28/2016		530			(868	)	(855	)				13
Put - S&P 500 Index	$	2,100.00		11/07/2016		670			(829	)	(282	)				547
Put - S&P 500 Index	$	2,075.00		11/21/2016		244			(309	)	(419	)				(110	)
Put - S&P 500 Index	$	2,050.00		11/14/2016		544			(649	)	(537	)				112
Total							$		(39,002	) $	(21,574	)	$		17,428

Amounts in thousands except contracts


Schedule of Investments
Global Real Estate Securities Fund
October 31, 2016



COMMON STOCKS - 99.28%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Lodging - 0.52%					REITS (continued)
Hilton Worldwide Holdings Inc	708,100	$	16,003		Prologis Property Mexico SA de CV	6,896,610	$	11,603
					Public Storage	176,231		37,664
Real Estate - 23.31%					Regency Centers Corp	334,360		24,097
Aeon Mall Co Ltd	1,968,900		29,240		Rexford Industrial Realty Inc	550,825		11,600
Castellum AB	2,053,492		27,825		Saul Centers Inc	211,722		12,805
CBRE Group Inc ^(a)	579,610		14,931		Scentre Group	12,642,829		40,464
Charter Hall Group	1,435,365		5,121		Segro PLC	6,764,940		36,234
Cheung Kong Property Holdings Ltd	2,935,500		21,701		Senior Housing Properties Trust	1,568,456		33,361
China Resources Land Ltd	6,200,000		15,398		Simon Property Group Inc	1,035,197		192,505
Deutsche Wohnen AG	3,079,663		100,618		SL Green Realty Corp	548,102		53,835
Fabege AB	1,920,433		32,435		Spirit Realty Capital Inc	2,604,361		31,018
Hongkong Land Holdings Ltd	5,080,000		34,017		STAG Industrial Inc	505,821		11,669
Inmobiliaria Colonial SA	444,515		3,135		STORE Capital Corp	1,490,671		40,680
Mitsubishi Estate Co Ltd	1,865,000		37,066		Sun Communities Inc	445,560		34,277
Mitsui Fudosan Co Ltd	3,589,793		81,754		Sunstone Hotel Investors Inc	2,538,870		31,888
New World Development Co Ltd	28,186,000		35,042		Tanger Factory Outlet Centers Inc	345,295		12,016
Sponda OYJ	4,249,554		20,119		Unibail-Rodamco SE	109,468		25,984
Sumitomo Realty & Development Co Ltd	2,140,000		56,252		Vornado Realty Trust	163,061		15,129
Sun Hung Kai Properties Ltd	6,732,577		100,256		Welltower Inc	1,240,673		85,023
TLG Immobilien AG	1,094,565		22,948				$	2,308,549
Tokyo Tatemono Co Ltd	1,654,600		21,018		Software - 0.74%
UNITE Group PLC/The	3,586,571		24,295		InterXion Holding NV ^(a)	616,500		22,953
Vonovia SE	600,959		21,187
Wihlborgs Fastigheter AB	1,036,005		20,080		Storage & Warehousing - 0.42%
		$	724,438		Safestore Holdings PLC	2,990,736		13,127
REITS - 74.29%
Agree Realty Corp	239,323		11,571		TOTAL COMMON STOCKS		$	3,085,070
Alexandria Real Estate Equities Inc	358,978		38,701		INVESTMENT COMPANIES - 1.44%	Shares Held		Value(000	's)
American Campus Communities Inc	435,769		22,708		Money Market Funds - 1.44%
American Tower Corp	233,251		27,335		Morgan Stanley Institutional Liquidity Funds -	44,872,733		44,873
Apartment Investment & Management Co	1,102,023		48,566		Government Portfolio
AvalonBay Communities Inc	518,590		88,772
Big Yellow Group PLC	993,830		8,408		TOTAL INVESTMENT COMPANIES		$	44,873
Boston Properties Inc	569,725		68,641		Total Investments		$	3,129,943
Brandywine Realty Trust	140,800		2,182		Other Assets and Liabilities - (0.72)%		$	(22,476	)
Colony Starwood Homes	559,660		16,236		TOTAL NET ASSETS - 100.00%		$	3,107,467
Crown Castle International Corp	385,700		35,095
CubeSmart	1,683,068		43,878
DDR Corp	301,467		4,609		(a) Non-Income Producing Security
Dexus Property Group	9,685,525		65,795
Duke Realty Corp	2,014,294		52,674
Education Realty Trust Inc	517,142		22,025
EPR Properties	381,127		27,716		Portfolio Summary (unaudited)
Equinix Inc	131,320		46,918		Country			Percent
Equity One Inc	1,214,263		34,607		United States			53.59	%
Equity Residential	482,106		29,770		Japan			12.63	%
Essex Property Trust Inc	379,378		81,221		Hong Kong			8.59	%
Extra Space Storage Inc	451,460		33,024		Australia			6.38	%
Federal Realty Investment Trust	111,082		16,132		Germany			4.66	%
First Industrial Realty Trust Inc	895,764		23,657		France			4.24	%
Frasers Logistics & Industrial Trust ^(a)	10,365,462		7,187		United Kingdom			4.13	%
Gecina SA	197,482		28,793		Sweden			2.58	%
General Growth Properties Inc	1,648,859		41,139		Spain			1.25	%
Goodman Group	11,260,852		58,044		Mexico			0.74	%
Hoshino Resorts REIT Inc	1,678		9,838		Netherlands			0.74	%
Japan Hotel REIT Investment Corp	30,395		20,507		Finland			0.65	%
Japan Logistics Fund Inc	11,738		25,529		Singapore			0.54	%
Japan Rental Housing Investments Inc	13,271		10,269		Other Assets and Liabilities			(0.72	)%
Japan Retail Fund Investment Corp	16,955		38,573		TOTAL NET ASSETS			100.00	%
Kenedix Retail REIT Corp	6,442		15,549
Kilroy Realty Corp	324,141		23,283
Klepierre	1,878,727		76,780
Land Securities Group PLC	3,796,969		46,364
Link REIT	8,484,000		60,355
Mapletree Commercial Trust	8,723,600		9,589
Merlin Properties Socimi SA	3,178,384		35,661
Mirvac Group	18,210,364		28,888
Nomura Real Estate Master Fund Inc	15,839		25,710
Orix JREIT Inc	12,255		20,993
Pebblebrook Hotel Trust	335,207		8,139
Physicians Realty Trust	1,430,283		28,277
PLA Administradora Industrial S de RL de CV	6,927,290		11,490
(a)
Prologis Inc	1,639,165		85,499


Schedule of Investments
Government & High Quality Bond Fund
October 31, 2016



	INVESTMENT COMPANIES - 1.48%		Shares Held		Value(000			's)		Principal
	Money Market Funds - 1.48%								BONDS (continued)	Amount (000's) Value (000's)
	Goldman Sachs Financial Square Funds -		22,784,723		$		22,785		Home Equity Asset Backed Securities - 0.47%
	Government Fund								ACE Securities Corp Mortgage Loan Trust
									Series 2007-D1
	TOTAL INVESTMENT COMPANIES				$		22,785		6.93%, 02/25/2038^(b)	$	7,411	$	7,274
			Principal
	BONDS- 29.50	%	Amount (000's)		Value(000			's)	Mortgage Backed Securities - 20.22%
	Automobile Asset Backed Securities - 0.26%								Citigroup Mortgage Loan Trust 2014-A
									5.46%, 01/25/2035^(a),(b)		6,144		6,481
	AmeriCredit Automobile Receivables Trust
	2016-3								Citigroup Mortgage Loan Trust 2015-PS1
	2.24%, 04/08/2022^(a)		$	4,000		$	4,018		5.25%, 09/25/2042^(a),(b)		8,179		8,838
									CSMC Trust 2015-1
									3.95%, 01/25/2045^(a),(b)		7,926		8,161
	Commercial Mortgage Backed Securities - 8.11%
	CFCRE Commercial Mortgage Trust 2011-								Fannie Mae Interest Strip
									3.50%, 12/25/2043^(c)		6,618		1,070
	C1
	6.18%, 04/15/2044^(a),(b)			3,000			3,186		7.00%, 04/25/2024^(a),(c)		51		9
	Citigroup Commercial Mortgage Trust 2013-								Fannie Mae REMICS
									1.13%, 04/25/2027^(a)		12		13
	GC17
									1.75%, 05/25/2046^(a),(c)		69,819		4,079
	4.54%, 11/10/2046			6,363			7,009
									1.81%, 03/25/2046^(a),(c)		44,055		2,649
	Citigroup Commercial Mortgage Trust 2016-
									1.86%, 07/25/2056^(a),(c)		56,831		4,120
	GC36
	4.76%, 02/10/2049^(a)			3,500			3,671		1.89%, 04/25/2045^(a),(c)		39,086		2,534
									1.90%, 07/25/2045^(a),(c)		53,555		3,869
	COMM 2014-UBS4 Mortgage Trust
	4.62%, 08/10/2047^(a)			5,000			5,076		1.93%, 06/25/2045^(a),(c)		53,893		3,644
									1.94%, 12/25/2045^(c)		15,299		1,115
	Ginnie Mae
	0.57%, 12/16/2053^(a),(c)			35,297			1,506		1.95%, 11/25/2044^(a),(c)		35,109		2,476
	0.62%, 08/16/2051^(a),(c)			89,031			4,335		1.96%, 08/25/2044^(a),(c)		51,973		3,493
	0.63%, 10/16/2053^(a),(c)			37,243			1,826		2.03%, 08/25/2044^(a),(c)		38,824		2,720
	0.67%, 06/16/2052^(a),(c)			35,910			1,286		2.50%, 02/25/2028^(a),(c)		21,260		1,846
	0.68%, 04/16/2047^(a),(c)			96,223			4,666		3.00%, 01/25/2046^(a)		8,031		8,427
	0.73%, 11/16/2045^(a),(c)			39,981			1,944		3.00%, 03/25/2046^(a),(c)		16,157		2,772
	0.76%, 10/16/2054^(a),(c)			53,179			2,074		3.50%, 01/25/2028^(a),(c)		19,616		2,212
	0.77%, 06/16/2054^(a),(c)			72,219			2,969		3.50%, 06/25/2033^(a),(c)		20,557		2,541
	0.79%, 11/16/2052^(a),(c)			57,271			3,115		3.50%, 04/25/2034^(a),(c)		19,468		2,855
	0.83%, 02/16/2053^(a),(c)			47,452			2,628		3.50%, 02/25/2036^(a),(c)		12,870		1,792
	0.87%, 03/16/2052^(a),(c)			68,564			4,275		3.50%, 01/25/2040^(a),(c)		23,542		2,705
	0.87%, 01/16/2056^(a),(c)			23,731			1,387		3.50%, 11/25/2042^(a),(c)		27,476		4,841
	0.88%, 02/16/2053^(a),(c)			52,220			2,897		3.50%, 11/25/2042		9,708		10,398
	0.91%, 10/16/2056^(a),(c)			38,346			2,877		3.50%, 02/25/2043		1,554		1,642
	0.95%, 02/16/2046^(a),(c)			63,953			3,581		4.00%, 06/25/2039		10,000		10,652
	0.95%, 09/16/2053^(a),(c)			56,070			3,056		4.00%, 12/25/2039^(c)		12,990		1,597
	0.97%, 06/16/2057^(a),(c)			17,340			1,411		4.00%, 03/25/2045		6,411		7,211
									4.50%, 04/25/2045^(a),(c)		33,709		7,626
	GS Mortgage Securities Trust 2011-GC5
	5.40%, 08/10/2044^(a),(b)			4,624			4,665		7.00%, 04/25/2032		1,167		1,339
	GS Mortgage Securities Trust 2013-GC13								9.00%, 05/25/2020		13		14
	4.07%, 07/10/2046^(a),(b)			5,000			4,468		Freddie Mac REMICS
									1.43%, 02/15/2021^(a)		7		7
	GS Mortgage Securities Trust 2015-GC34
	4.65%, 10/10/2048^(a)			4,169			4,312		1.93%, 05/15/2041^(a),(c)		72,835		5,020
									1.96%, 04/15/2040^(a),(c)		50,199		3,594
	JP Morgan Chase Commercial Mortgage
									1.96%, 02/15/2042^(a),(c)		37,032		2,444
	Securities Trust 2013-C16
	4.91%, 12/15/2046^(a)			8,000			8,993		2.01%, 10/15/2040^(a),(c)		52,850		4,363
									2.08%, 10/15/2040^(a),(c)		41,497		3,310
	JP Morgan Chase Commercial Mortgage
	Securities Trust 2015-JP1								2.50%, 11/15/2032		6,870		6,909
	4.24%, 01/15/2049^(a),(b)			3,000			2,312		2.50%, 01/15/2043^(a),(c)		17,535		2,264
	JPMBB Commercial Mortgage Securities								2.50%, 02/15/2043		3,491		3,476
	Trust 2014-C25								3.00%, 08/15/2028		4,405		4,589
	4.45%, 11/15/2047^(a)			5,000			5,030		3.00%, 11/15/2030^(a),(c)		8,472		586
	Wells Fargo Commercial Mortgage Trust								3.00%, 06/15/2040		7,189		7,431
	2015	-C31							3.00%, 10/15/2042		2,372		2,453
	4.61%, 11/15/2048^(a)			6,000			6,130		3.00%, 03/15/2043		6,846		7,075
	WFRBS Commercial Mortgage Trust 2013-								3.00%, 03/15/2044		5,761		6,010
	C14								3.00%, 05/15/2044		1,588		1,615
	4.00%, 06/15/2046^(a),(b)			2,500			2,247		3.00%, 05/15/2044^(a)		3,996		4,157
									3.50%, 01/15/2028^(a),(c)		10,533		1,108
	WFRBS Commercial Mortgage Trust 2014-
									3.50%, 04/15/2040^(c)		13,836		1,058
	C22
	3.91%, 09/15/2057^(a),(b)			4,840			3,690		4.00%, 06/15/2028^(a),(c)		1,589		21
									4.00%, 02/15/2039^(a),(c)		25,994		2,613
	WFRBS Commercial Mortgage Trust 2014-
	C23								4.00%, 05/15/2039		4,825		5,099
	4.38%, 10/15/2057^(a)			9,700			10,562		4.00%, 11/15/2042^(a),(c)		16,056		2,532
	WFRBS Commercial Mortgage Trust 2014-								4.00%, 01/15/2045		6,413		7,250
									4.50%, 05/15/2037^(a)		3,136		3,222
	LC14
	4.34%, 03/15/2047^(a)			8,000			8,050		6.50%, 08/15/2027		102		109
					$		125,234		Freddie Mac Strips
									2.05%, 02/15/2038^(a),(c)		51,108		3,703
									3.00%, 10/15/2027^(a),(c)		18,798		1,891


Schedule of Investments
Government & High Quality Bond Fund
October 31, 2016



	Principal				U.S. GOVERNMENT & GOVERNMENT		Principal
BONDS (continued)	Amount (000's) Value (000's)				AGENCY OBLIGATIONS (continued)		Amount (000's)		Value(000	's)
Mortgage Backed Securities (continued)					Federal Home Loan Mortgage Corporation (FHLMC) (continued)
Ginnie Mae					4.00%, 09/01/2044	$	6,816	$	7,482
1.18%, 03/20/2041^(a),(c)	$	43,522	$	1,611	4.50%, 07/01/2039		1,775		1,949
1.19%, 09/20/2037^(a),(c)		35,143		1,732	4.50%, 12/01/2040		4,955		5,437
1.20%, 11/20/2036^(a),(c)		51,558		2,504	4.50%, 04/01/2041		6,549		7,364
3.00%, 05/16/2037		14,000		14,273	4.50%, 11/01/2043		6,280		7,069
3.25%, 05/20/2045^(a)		4,989		5,386	5.00%, 10/01/2025		87		96
3.50%, 04/20/2038^(a),(c)		11,240		1,001	5.00%, 12/01/2032		75		83
3.50%, 10/20/2041^(a),(c)		17,920		2,075	5.00%, 02/01/2033		741		829
3.50%, 01/20/2043^(c)		22,763		4,965	5.00%, 01/01/2034		695		780
3.50%, 05/20/2043^(a),(c)		14,717		2,702	5.00%, 05/01/2034		162		180
4.00%, 02/20/2034		6,395		6,719	5.00%, 07/01/2035		70		79
4.00%, 11/16/2038		787		825	5.00%, 07/01/2035		4		4
4.00%, 02/20/2044^(a),(c)		9,668		1,342	5.00%, 10/01/2035		14		15
4.00%, 04/20/2045^(a),(c)		22,526		3,953	5.00%, 11/01/2035		562		625
4.00%, 04/20/2046^(c)		17,500		3,344	5.00%, 07/01/2044		4,742		5,323
4.50%, 04/20/2045^(a),(c)		9,693		2,408	5.50%, 04/01/2018		14		14
4.50%, 12/20/2045^(a),(c)		12,370		2,669	5.50%, 03/01/2029		1		1
5.00%, 11/20/2039		5,617		6,248	5.50%, 05/01/2033		12		14
New Residential Mortgage Loan Trust 2014-					5.50%, 10/01/2033		18		20
3					5.50%, 12/01/2033		469		535
4.75%, 11/25/2054^(a),(b)		7,718		8,339	5.50%, 07/01/2037		30		34
New Residential Mortgage Loan Trust 2015-					5.50%, 04/01/2038		16		19
2					5.50%, 05/01/2038		74		84
5.60%, 08/25/2055^(a),(b)		6,709		7,139	6.00%, 04/01/2017		13		13
Sequoia Mortgage Trust 2013-2					6.00%, 04/01/2017		12		12
3.65%, 02/25/2043^(a)		8,052		8,302	6.00%, 05/01/2017		15		15
Springleaf Mortgage Loan Trust 2013-3					6.00%, 01/01/2021		41		43
3.79%, 09/25/2057^(a),(b)		4,800		4,791	6.00%, 06/01/2028		10		12
		$		311,978	6.00%, 05/01/2031		112		130
Other Asset Backed Securities - 0.44%					6.00%, 10/01/2031		4		4
CNH Equipment Trust 2016-C					6.00%, 02/01/2032		18		20
1.76%, 09/15/2023		1,600		1,602	6.00%, 09/01/2032		189		216
1.93%, 03/15/2024^(a)		2,000		1,996	6.00%, 11/01/2033		334		383
TAL Advantage V LLC					6.00%, 11/01/2033		498		577
3.33%, 05/20/2039^(a),(b)		3,210		3,138	6.00%, 05/01/2034		1,303		1,507
		$		6,736	6.00%, 05/01/2034		1,215		1,363
TOTAL BONDS		$		455,240	6.00%, 09/01/2034		108		124
U.S. GOVERNMENT & GOVERNMENT	Principal				6.00%, 02/01/2035		108		125
					6.00%, 10/01/2036^(a)		66		76
AGENCY OBLIGATIONS - 69.60%	Amount (000's) Value (000's)
Federal Home Loan Mortgage Corporation (FHLMC) - 14.82%					6.00%, 03/01/2037		129		151
2.00%, 02/01/2028	$	534	$	538	6.00%, 05/01/2037		179		210
					6.00%, 01/01/2038^(a)		59		68
2.00%, 03/01/2028		2,454		2,473
2.50%, 08/01/2027		1,972		2,031	6.00%, 03/01/2038		43		50
2.50%, 09/01/2027		6,362		6,552	6.00%, 04/01/2038		142		165
2.50%, 02/01/2028		6,185		6,375	6.00%, 07/01/2038		253		291
2.54%, 03/01/2036^(a)		246		253	6.00%, 10/01/2038		147		170
2.85%, 10/01/2032^(a)		2		2	6.00%, 09/01/2039		5,468		6,452
3.00%, 02/01/2027		5,573		5,844	6.50%, 06/01/2017		3		3
3.00%, 04/01/2035		3,396		3,552	6.50%, 12/01/2021		216		242
3.00%, 10/01/2042		7,815		8,154	6.50%, 04/01/2022		195		219
3.00%, 10/01/2042		9,463		9,800	6.50%, 05/01/2022		79		88
3.00%, 05/01/2043		6,890		7,156	6.50%, 08/01/2022		47		53
3.00%, 07/01/2045		9,065		9,372	6.50%, 05/01/2023		82		87
3.50%, 11/01/2026		3,634		3,859	6.50%, 07/01/2023		2		2
3.50%, 02/01/2032		5,903		6,266	6.50%, 01/01/2024		5		5
3.50%, 04/01/2032		5,205		5,526	6.50%, 07/01/2025		1		2
3.50%, 12/01/2041		3,284		3,510	6.50%, 09/01/2025		1		1
3.50%, 04/01/2042		9,836		10,398	6.50%, 10/01/2025		1		1
3.50%, 07/01/2042		10,886		11,522	6.50%, 10/01/2025		2		3
3.50%, 09/01/2042		7,768		8,209	6.50%, 03/01/2029		6		7
3.50%, 08/01/2043		7,565		8,050	6.50%, 03/01/2029		58		68
3.50%, 02/01/2044		8,724		9,256	6.50%, 04/01/2031		224		256
3.50%, 08/01/2045		9,051		9,673	6.50%, 10/01/2031		82		96
3.50%, 07/01/2046		4,896		5,216	6.50%, 02/01/2032		12		14
4.00%, 12/01/2040		6,489		7,038	6.50%, 04/01/2032		10		12
4.00%, 10/01/2041		3,846		4,134	6.50%, 04/01/2035		7		9
4.00%, 12/01/2041		5,912		6,494	6.50%, 02/01/2037		30		35
4.00%, 07/01/2042		4,211		4,627	7.00%, 07/01/2024		3		3
4.00%, 09/15/2042		3,762		4,059	7.00%, 01/01/2028		422		471
4.00%, 07/01/2043		5,526		6,067	7.00%, 06/01/2029		134		153


Schedule of Investments
Government & High Quality Bond Fund
October 31, 2016



U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)		Value (000's)		AGENCY OBLIGATIONS (continued)	Amount (000's)			Value(000	's)
Federal Home Loan Mortgage Corporation (FHLMC) (continued)					Federal National Mortgage Association (FNMA) (continued)
7.00%, 01/01/2031	$	1	$	1	4.00%, 08/01/2039	$	4,691	$	5,020
7.00%, 04/01/2031		86		97	4.00%, 09/01/2040		3,766		4,089
7.00%, 10/01/2031		104		118	4.00%, 04/01/2041		3,408		3,661
7.00%, 04/01/2032		219		262	4.00%, 02/01/2042		3,088		3,377
7.50%, 12/01/2030		4		4	4.00%, 04/01/2042		6,516		7,003
7.50%, 02/01/2031		2		2	4.00%, 01/01/2043		2,755		3,026
7.50%, 02/01/2031		21		23	4.00%, 03/01/2043		5,682		6,172
8.00%, 08/01/2030		1		1	4.00%, 08/01/2043		9,696		10,646
8.00%, 12/01/2030		10		10	4.00%, 08/01/2043		5,967		6,550
8.50%, 07/01/2029		134		148	4.00%, 10/01/2043		7,310		7,996
			$	228,715	4.00%, 04/01/2044		3,782		4,150
Federal National Mortgage Association (FNMA) - 42.42%					4.00%, 08/01/2044		13,093		14,366
2.00%, 10/01/2027		3,124		3,151	4.00%, 08/01/2044		5,187		5,693
2.00%, 10/01/2027		4,220		4,256	4.00%, 11/01/2044		3,986		4,372
2.00%, 02/01/2028		5,662		5,710	4.00%, 02/01/2045		6,954		7,626
2.00%, 08/01/2028		3,369		3,398	4.00%, 07/01/2045		8,089		8,775
2.00%, 07/01/2030		8,246		8,275	4.00%, 08/01/2045		6,892		7,552
2.50%, 06/01/2027		7,272		7,492	4.00%, 09/01/2045		13,343		14,631
2.50%, 05/01/2028		3,716		3,832	4.50%, 12/01/2019		26		27
2.50%, 05/01/2028		3,203		3,302	4.50%, 01/01/2020		128		132
2.50%, 07/01/2028		11,810		12,121	4.50%, 09/01/2025		2,648		2,851
2.50%, 08/01/2028		4,367		4,503	4.50%, 07/01/2039		1,944		2,154
2.50%, 09/01/2028		6,299		6,494	4.50%, 09/01/2039		2,393		2,650
2.50%, 03/01/2030		9,158		9,448	4.50%, 03/01/2041		4,536		4,990
2.50%, 12/01/2033^(a)		109		114	4.50%, 03/01/2042		11,442		12,814
3.00%, 04/01/2027		5,276		5,536	4.50%, 09/01/2043		5,056		5,664
3.00%, 05/01/2029		8,315		8,756	4.50%, 09/01/2043		5,663		6,345
3.00%, 08/01/2031		13,069		13,792	4.50%, 09/01/2043		9,386		10,524
3.00%, 10/01/2042		7,235		7,501	4.50%, 11/01/2043		8,438		9,454
3.00%, 11/01/2042		9,858		10,221	4.50%, 09/01/2044		7,179		8,031
3.00%, 12/01/2042		7,305		7,573	4.50%, 10/01/2044		4,922		5,509
3.00%, 12/01/2042		7,347		7,612	4.50%, 12/01/2044		11,685		13,034
3.00%, 01/01/2043		7,269		7,532	5.00%, 01/01/2018		12		12
3.00%, 01/01/2043		6,158		6,384	5.00%, 11/01/2018		84		86
3.00%, 02/01/2043		7,620		7,915	5.00%, 04/01/2019		27		28
3.00%, 04/01/2043		8,854		9,147	5.00%, 01/01/2026		100		110
3.00%, 06/01/2043		13,700		14,203	5.00%, 04/01/2035		221		250
3.00%, 08/01/2043		9,288		9,587	5.00%, 05/01/2035		117		130
3.00%, 07/01/2045		3,637		3,766	5.00%, 07/01/2035		38		42
3.00%, 01/01/2046		7,095		7,351	5.00%, 02/01/2038		2,549		2,882
3.00%, 05/01/2046		6,797		7,058	5.00%, 03/01/2038		1,909		2,158
3.00%, 07/01/2046		9,276		9,601	5.00%, 02/01/2040		9,561		10,826
3.00%, 09/01/2046		7,946		8,242	5.00%, 05/01/2040		3,744		4,243
3.26%, 11/01/2033^(a)		10		11	5.00%, 07/01/2040		2,446		2,752
3.50%, 08/01/2031		6,765		7,289	5.00%, 07/01/2041		10,988		12,470
3.50%, 02/01/2042		7,988		8,540	5.00%, 02/01/2044		4,635		5,271
3.50%, 03/01/2042		3,949		4,161	5.50%, 09/01/2017		1		1
3.50%, 06/01/2042		4,158		4,397	5.50%, 09/01/2017		8		8
3.50%, 07/01/2042		4,833		5,111	5.50%, 12/01/2017		54		55
3.50%, 07/01/2042		6,581		7,001	5.50%, 03/01/2018		14		14
3.50%, 09/01/2042		10,950		11,648	5.50%, 06/01/2019		6		6
3.50%, 11/01/2042		6,708		7,144	5.50%, 06/01/2019		6		6
3.50%, 02/01/2043		2,690		2,874	5.50%, 07/01/2019		25		26
3.50%, 05/01/2043		3,416		3,650	5.50%, 07/01/2019		8		9
3.50%, 05/01/2043		6,545		6,976	5.50%, 07/01/2019		1		1
3.50%, 10/01/2044		8,491		9,089	5.50%, 07/01/2019		16		16
3.50%, 11/01/2044		7,580		8,103	5.50%, 08/01/2019		5		6
3.50%, 03/01/2045		7,052		7,513	5.50%, 08/01/2019		24		25
3.50%, 03/01/2045		4,139		4,389	5.50%, 09/01/2019		35		37
3.50%, 06/01/2045		8,704		9,293	5.50%, 06/01/2026		92		104
3.50%, 08/01/2045		7,347		7,845	5.50%, 05/01/2033		178		195
3.50%, 09/01/2045		6,911		7,348	5.50%, 07/01/2033		829		954
3.50%, 10/01/2045		7,461		7,966	5.50%, 09/01/2033		456		524
3.50%, 11/01/2045		13,605		14,492	5.50%, 02/01/2035		1,751		1,988
3.50%, 01/01/2046		6,637		7,087	5.50%, 02/01/2037		11		12
3.50%, 04/01/2046		9,703		10,375	5.50%, 12/01/2037		1,313		1,510
4.00%, 01/01/2034		1,916		2,069	5.50%, 03/01/2038		338		389
					5.50%, 03/01/2038		470		535
					6.00%, 12/01/2016		2		2
					6.00%, 04/01/2017		3		3
					6.00%, 08/01/2017		79		80
					6.00%, 08/01/2018		95		98


Schedule of Investments
Government & High Quality Bond Fund
October 31, 2016



U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT		Principal
AGENCY OBLIGATIONS (continued)	Amount (000's)		Value (000's)		AGENCY OBLIGATIONS (continued)		Amount (000's)		Value(000	's)
Federal National Mortgage Association (FNMA) (continued)					Government National Mortgage Association (GNMA) (continued)
6.00%, 12/01/2022	$	17	$	19	3.50%, 04/20/2045	$	7,058	$	7,538
6.00%, 03/01/2029		60		69	3.50%, 09/20/2045		9,224		9,922
6.00%, 08/01/2031		393		454	4.00%, 08/15/2041		5,771		6,327
6.00%, 12/01/2031		3		4	4.00%, 09/15/2041		9,324		10,267
6.00%, 12/01/2031		2		2	4.00%, 03/15/2044		5,919		6,543
6.00%, 01/01/2032		258		279	4.00%, 10/20/2044		5,678		6,212
6.00%, 11/01/2032		7		8	5.00%, 02/15/2034		185		207
6.00%, 04/01/2033		269		299	5.00%, 10/15/2039		3,884		4,408
6.00%, 02/01/2034		199		227	5.50%, 07/20/2033		1,505		1,706
6.00%, 03/01/2034		145		166	5.50%, 03/20/2034		1,513		1,750
6.00%, 09/01/2034		920		1,027	5.50%, 05/20/2035		164		186
6.00%, 11/01/2037		65		74	5.50%, 01/15/2039		314		355
6.00%, 02/01/2038		126		145	6.00%, 10/15/2023		93		107
6.00%, 03/01/2038		76		87	6.00%, 11/15/2023		42		48
6.00%, 08/01/2038		788		913	6.00%, 11/15/2023		17		19
6.00%, 04/01/2039		893		1,048	6.00%, 12/15/2023		23		26
6.50%, 09/01/2024		245		282	6.00%, 12/15/2023		2		2
6.50%, 08/01/2028		66		76	6.00%, 12/15/2023		10		12
6.50%, 11/01/2028		47		54	6.00%, 01/15/2024		12		14
6.50%, 12/01/2028		40		46	6.00%, 01/20/2024		5		5
6.50%, 02/01/2029		26		30	6.00%, 02/15/2024		23		27
6.50%, 03/01/2029		50		58	6.00%, 02/15/2024		15		18
6.50%, 04/01/2029		26		30	6.00%, 02/15/2024		21		24
6.50%, 06/01/2031		76		87	6.00%, 03/15/2024		14		16
6.50%, 06/01/2031		70		80	6.00%, 04/20/2024		25		28
6.50%, 06/01/2031		105		124	6.00%, 05/20/2024		16		18
6.50%, 12/01/2031		4		4	6.00%, 05/20/2024		13		14
6.50%, 01/01/2032		33		38	6.00%, 10/20/2024		11		12
6.50%, 04/01/2032		358		411	6.00%, 09/20/2025		21		24
6.50%, 04/01/2032		22		25	6.00%, 04/20/2026		53		61
6.50%, 08/01/2032		145		167	6.00%, 10/20/2028		8		9
6.50%, 11/01/2032		406		459	6.00%, 02/20/2029		95		112
6.50%, 11/01/2032		186		208	6.00%, 08/15/2032		36		41
6.50%, 02/01/2033		231		265	6.00%, 09/15/2032		70		81
6.50%, 04/01/2036		10		12	6.00%, 02/15/2033		24		27
6.50%, 08/01/2036		63		73	6.00%, 07/20/2033		1,134		1,315
6.50%, 08/01/2036		112		128	6.00%, 08/15/2038		140		160
6.50%, 10/01/2036		51		61	6.50%, 09/15/2023		21		24
6.50%, 11/01/2036		46		52	6.50%, 09/15/2023		13		15
6.50%, 07/01/2037		44		54	6.50%, 09/15/2023		12		14
6.50%, 07/01/2037		29		35	6.50%, 09/15/2023		7		8
6.50%, 08/01/2037		716		851	6.50%, 10/15/2023		19		22
6.50%, 08/01/2037		59		69	6.50%, 12/15/2023		16		19
6.50%, 01/01/2038		8		10	6.50%, 12/15/2023		24		27
6.50%, 02/01/2038		35		42	6.50%, 12/15/2023		11		13
6.50%, 05/01/2038		11		12	6.50%, 12/15/2023		5		6
7.00%, 05/01/2022		13		14	6.50%, 01/15/2024		16		18
7.00%, 08/01/2028		79		91	6.50%, 01/15/2024		3		4
7.00%, 12/01/2028		83		94	6.50%, 01/15/2024		29		33
7.00%, 07/01/2029		82		94	6.50%, 01/15/2024		10		11
7.00%, 11/01/2031		249		274	6.50%, 01/15/2024		7		8
7.00%, 07/01/2032		148		166	6.50%, 01/15/2024		9		10
7.50%, 12/01/2024		103		113	6.50%, 03/15/2024		21		25
7.50%, 07/01/2029		22		22	6.50%, 04/15/2024		15		17
7.50%, 02/01/2030		80		89	6.50%, 04/20/2024		9		10
7.50%, 01/01/2031		2		2	6.50%, 07/15/2024		38		43
7.50%, 08/01/2032		10		11	6.50%, 01/15/2026		7		8
8.00%, 05/01/2022		1		1	6.50%, 03/15/2026		9		11
8.50%, 09/01/2025		1		1	6.50%, 07/20/2026		2		2
9.00%, 09/01/2030		32		38	6.50%, 10/20/2028		10		12
			$	654,666	6.50%, 03/20/2031		78		92
Government National Mortgage Association (GNMA) - 7.43%					6.50%, 04/20/2031		63		75
3.00%, 11/15/2042		6,446		6,721	6.50%, 07/15/2031		1		2
3.00%, 11/15/2042		8,704		9,126	6.50%, 10/15/2031		11		13
3.00%, 12/15/2042		6,564		6,854	6.50%, 07/15/2032		5		6
3.00%, 02/15/2043		7,181		7,530	6.50%, 05/20/2034		594		720
3.50%, 08/20/2042		6,330		6,806	6.80%, 04/20/2025		38		39
3.50%, 06/20/2043		7,046		7,604	7.00%, 11/15/2022		3		3
3.50%, 08/15/2043		8,985		9,632	7.00%, 11/15/2022		6		6
					7.00%, 12/15/2022		31		33
					7.00%, 01/15/2023		15		16
					7.00%, 01/15/2023		3		3
					7.00%, 01/15/2023		7		7


Schedule of Investments
Government & High Quality Bond Fund
October 31, 2016



U.S. GOVERNMENT & GOVERNMENT		Principal			U.S. GOVERNMENT & GOVERNMENT			Principal
AGENCY OBLIGATIONS (continued)		Amount (000's)	Value (000's)		AGENCY OBLIGATIONS (continued)		Amount (000's)		Value (000's)
Government National Mortgage Association (GNMA) (continued)					U.S. Treasury - 4.51%
7.00%, 02/15/2023	$	20	$	20		1.00%, 02/15/2018	$	16,600	$	16,650
7.00%, 07/15/2023		15		15		2.25%, 11/30/2017		3,600		3,658
7.00%, 07/15/2023		8		8		3.13%, 05/15/2021		18,000		19,441
7.00%, 07/15/2023		7		8		4.25%, 11/15/2040		5,310		7,014
7.00%, 08/15/2023		16		17		5.25%, 11/15/2028		9,600		12,987
7.00%, 10/15/2023		6		6		6.25%, 08/15/2023		7,500		9,761
7.00%, 12/15/2023		14		15					$	69,511
7.00%, 12/15/2023		15		17	U.S. Treasury Strip - 0.42%
7.00%, 01/15/2026		11		11		0.00%, 05/15/2020^(d),(e)		6,800		6,531
7.00%, 01/15/2027		22		25
7.00%, 10/15/2027		1		1	TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
7.00%, 10/15/2027		8		9	OBLIGATIONS				$	1,074,105
7.00%, 10/15/2027		1		1	Total Investments				$	1,552,130
7.00%, 12/15/2027		5		5	Other Assets and Liabilities - (0.58)%				$	(8,916	)
7.00%, 12/15/2027		2		2	TOTAL NET ASSETS - 100.00%				$	1,543,214
7.00%, 02/15/2028		1		1
7.00%, 04/15/2028		2		2
7.00%, 06/15/2028		142		157	(a)	Variable Rate. Rate shown is in effect at October 31, 2016.
7.00%, 12/15/2028		70		78	(b)	Security exempt from registration under Rule 144A of the Securities Act of
7.00%, 01/15/2029		50		56		1933. These securities may be resold in transactions exempt from
7.00%, 03/15/2029		25		25		registration, normally to qualified institutional buyers. At the end of the
7.00%, 04/15/2029		174		194		period, the value of these securities totaled $74,729 or 4.84% of net assets.
7.00%, 04/15/2029		15		15	(c)	Security is an Interest Only Strip.
7.00%, 05/15/2031		8		10	(d)	Non-Income Producing Security
7.00%, 06/20/2031		61		75	(e)	Security is a Principal Only Strip.
7.00%, 07/15/2031		2		2
7.00%, 09/15/2031		2		2
7.25%, 09/15/2025		14		14
7.50%, 04/15/2017		1		1		Portfolio Summary (unaudited)
7.50%, 07/15/2018		3		3	Sector					Percent
7.50%, 12/15/2021		18		18	Mortgage Securities					93.00	%
7.50%, 02/15/2022		6		6	Government					4.93	%
7.50%, 03/15/2022		7		8	Investment Companies					1.48	%
7.50%, 03/15/2022		1		1	Asset Backed Securities					1.17	%
7.50%, 04/15/2022		2		2	Other Assets and Liabilities					(0.58	)%
7.50%, 04/15/2022		6		6	TOTAL NET ASSETS					100.00	%
7.50%, 04/15/2022		21		21
7.50%, 07/15/2022		14		14
7.50%, 08/15/2022		2		2
7.50%, 08/15/2022		3		3
7.50%, 08/15/2022		13		13
7.50%, 02/15/2023		8		8
7.50%, 05/15/2023		7		7
7.50%, 05/15/2023		2		2
7.50%, 06/15/2023		13		14
7.50%, 10/15/2023		1		1
7.50%, 11/15/2023		10		10
7.50%, 03/15/2024		14		16
7.50%, 08/15/2024		1		1
7.50%, 05/15/2027		16		16
7.50%, 05/15/2027		6		6
7.50%, 06/15/2027		10		10
7.50%, 08/15/2029		53		60
7.50%, 10/15/2029		62		70
7.50%, 11/15/2029		47		48
7.50%, 11/15/2029		77		81
8.00%, 02/15/2022		17		19
8.00%, 04/15/2022		11		11
8.00%, 12/15/2030		7		9
9.00%, 11/15/2021		37		40
9.50%, 10/15/2017		1		2
9.50%, 11/15/2017		1		1
9.50%, 09/20/2018		11		12
9.50%, 09/15/2020		6		6
9.50%, 12/20/2020		13		13
9.50%, 01/20/2021		1		1
9.50%, 08/15/2021		36		40
			$	114,682


Schedule of Investments
High Yield Fund
October 31, 2016



	COMMON STOCKS - 0.31%			Shares Held	Value(000			's)			Principal
	Commercial Services - 0.00%								BONDS (continued)		Amount (000's) Value (000's)
	Network Holding Co KSCC ^(a),(b),(c)			393,257	$		32		Banks (continued)
									ING Bank NV
	Computers - 0.00%								5.80%, 09/25/2023^(d)	$	18,700	$	21,030
	GCB S3 Inc ^(a),(b),(c)			10,000,000			—		ING Groep NV
									6.00%, 12/29/2049^(f),(g)		8,150		8,068
	Energy - Alternate Sources - 0.00%								JPMorgan Chase & Co
	Ogden Corp ^(a),(b),(c)			5,000,000			—		5.00%, 12/29/2049^(f),(g)		35,420		34,712
									Popular Inc
	Forest Products & Paper - 0.05%								7.00%, 07/01/2019		8,920		9,243
	Verso Corp ^(a)			279,134			1,714		Wells Fargo & Co
	Verso Corp - Warrants ^(a),(c)			12,855			—		5.87%, 12/29/2049^(f),(g)		8,765		9,417
					$		1,714		5.90%, 12/29/2049^(f),(g)		18,000		18,833
	Oil & Gas Services - 0.26%										$		110,466
	Seventy Seven Energy Inc ^(a),(b)			387,550			9,301		Beverages - 0.60%
									Constellation Brands Inc
	TOTAL COMMON STOCKS				$		11,047		4.25%, 05/01/2023		20,220		21,387
	INVESTMENT COMPANIES - 5.09%			Shares Held	Value(000			's)
	Money Market Funds - 5.09%								Building Materials - 1.73%
	Goldman Sachs Financial Square Funds -			181,202,028			181,202		BMC East LLC
									5.50%, 10/01/2024^(d)		8,885		9,018
	Government Fund
									Boise Cascade Co
									5.63%, 09/01/2024^(d)		8,655		8,752
	TOTAL INVESTMENT COMPANIES				$		181,202
									Cemex SAB de CV
				Principal					5.70%, 01/11/2025^(d)		8,420		8,567
	BONDS- 88.24	%		Amount (000's)	Value(000			's)	6.13%, 05/05/2025^(d)		4,000		4,140
	Advertising - 0.22%								7.25%, 01/15/2021^(d)		2,880		3,095
	MDC Partners Inc								7.75%, 04/16/2026^(d)		4,705		5,273
	6.50%, 05/01/2024^(d)		$	9,335		$	7,958
									Louisiana-Pacific Corp
									4.88%, 09/15/2024^(d)		1,900		1,867
	Aerospace & Defense - 0.09%
									Masco Corp
	Air 2 US
	8.63%, 10/01/2020^(d)			3,045			3,165		4.38%, 04/01/2026		9,845		10,239
									Norbord Inc
									5.38%, 12/01/2020^(d)		10,175		10,646
	Agriculture - 0.38%
	Pinnacle Operating Corp										$		61,597
	9.00%, 11/15/2020^(d)			22,113			13,710		Chemicals - 1.97%
									A Schulman Inc
									6.88%, 06/01/2023^(d)		7,105		7,229
	Airlines - 0.21%
	American Airlines 2015-1 Class B Pass								Aruba Investments Inc
									8.75%, 02/15/2023^(d)		10,280		10,486
	Through Trust
	3.70%, 11/01/2024			2,543			2,505		Blue Cube Spinco Inc
	United Airlines 2014-1 Class B Pass Through								9.75%, 10/15/2023		5,350		6,286
	Trust								CF Industries Inc
	4.75%, 10/11/2023			3,013			3,088		5.15%, 03/15/2034		2,830		2,542
	US Airways 2001-1G Pass Through Trust								Consolidated Energy Finance SA
									6.75%, 10/15/2019^(d)		22,239		22,239
	7.08%, 09/20/2022			1,740			1,866
					$		7,459		Cornerstone Chemical Co
									9.38%, 03/15/2018^(d)		9,815		9,741
	Apparel - 0.06%
									Versum Materials Inc
	Hanesbrands Inc								5.50%, 09/30/2024^(d)		1,415		1,447
	4.63%, 05/15/2024^(d)			2,200			2,237
									Westlake Chemical Corp
									4.63%, 02/15/2021^(d)		9,590		10,021
	Automobile Manufacturers - 1.18%
	Jaguar Land Rover Automotive PLC										$		69,991
	3.50%, 03/15/2020^(d)			7,400			7,529		Commercial Services - 0.36%
	4.25%, 11/15/2019^(d)			12,880			13,331		Ahern Rentals Inc
	5.63%, 02/01/2023^(d)			6,780			7,014		7.38%, 05/15/2023^(d)		7,070		4,631
	Navistar International Corp								TMS International Corp
									7.63%, 10/15/2021^(d)		10,020		8,266
	8.25%, 11/01/2021			14,360			14,055
					$		41,929				$		12,897
	Automobile Parts & Equipment - 1.04%								Computers - 1.15%
	Allison Transmission Inc								Compiler Finance Sub Inc
	5.00%, 10/01/2024^(d)			7,180			7,324		7.00%, 05/01/2021^(d)		12,770		5,938
	Dana Inc								Diamond 1 Finance Corp / Diamond 2 Finance
	5.50%, 12/15/2024			8,530			8,829		Corp
	IHO Verwaltungs GmbH								3.48%, 06/01/2019^(d)		8,455		8,675
	4.75%, PIK 5.50%, 09/15/2026^(d),(e)			2,985			2,977		5.88%, 06/15/2021^(d)		1,200		1,264
									7.13%, 06/15/2024^(d)		22,930		25,119
	ZF North America Capital Inc
	4.00%, 04/29/2020^(d)			1,905			2,005				$		40,996
	4.50%, 04/29/2022^(d)			2,030			2,149		Consumer Products - 0.33%
	4.75%, 04/29/2025^(d)			13,040			13,757		Spectrum Brands Inc
					$		37,041		5.75%, 07/15/2025		10,830		11,724
	Banks- 3.10%
	Barclays PLC
	8.25%, 12/29/2049^(f),(g)			9,050			9,163


Schedule of Investments
High Yield Fund
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Distribution & Wholesale - 0.62%					Entertainment (continued)
American Builders & Contractors Supply Co					Carmike Cinemas Inc
Inc					6.00%, 06/15/2023^(d)		$	7,040	$	7,515
5.75%, 12/15/2023^(d)	$	5,550	$	5,786	CCM Merger Inc
Global Partners LP / GLP Finance Corp					9.13%, 05/01/2019^(d)			22,291		23,294
7.00%, 06/15/2023		10,170		9,712	Cinemark USA Inc
HD Supply Inc					4.88%, 06/01/2023			17,025		17,046
5.25%, 12/15/2021^(d)		2,525		2,683	Eldorado Resorts Inc
5.75%, 04/15/2024^(d)		3,825		4,016	7.00%, 08/01/2023			10,345		10,991
		$		22,197	GLP Capital LP / GLP Financing II Inc
Diversified Financial Services - 5.81%					4.38%, 04/15/2021			945		995
AerCap Ireland Capital Ltd / AerCap Global					5.38%, 04/15/2026			9,775		10,386
Aviation Trust					LG FinanceCo Corp
4.63%, 10/30/2020		5,865		6,173	5.88%, 11/01/2024^(d)			8,635		8,716
4.63%, 07/01/2022		16,135		16,841	National CineMedia LLC
Aircastle Ltd					5.75%, 08/15/2026^(d)			6,625		6,824
5.00%, 04/01/2023		9,745		10,086	Pinnacle Entertainment Inc
5.13%, 03/15/2021		11,795		12,517	5.63%, 05/01/2024^(d)			8,510		8,574
5.50%, 02/15/2022		5,165		5,540	WMG Acquisition Corp
6.75%, 04/15/2017		3,915		3,993	4.88%, 11/01/2024^(d)			4,270		4,259
Ally Financial Inc					5.00%, 08/01/2023^(d)			5,810		5,883
4.25%, 04/15/2021		1,095		1,106	6.75%, 04/15/2022^(d)			12,655		13,367
5.75%, 11/20/2025		14,935		15,290				$		121,865
CIT Group Inc					Food- 2.16	%
3.88%, 02/19/2019		20,125		20,433	BI-LO LLC / BI-LO Finance Corp
5.00%, 08/15/2022		8,500		9,063	9.25%, 02/15/2019^(d)			10,875		9,434
Credit Acceptance Corp					Ingles Markets Inc
6.13%, 02/15/2021		12,090		12,151	5.75%, 06/15/2023			10,265		10,624
7.38%, 03/15/2023		8,140		8,405	JBS USA LUX SA / JBS USA Finance Inc
Dana Financing Luxembourg Sarl					5.75%, 06/15/2025^(d)			9,165		8,982
6.50%, 06/01/2026^(d)		1,680		1,787	7.25%, 06/01/2021^(d)			3,338		3,421
Doric Nimrod Air Finance Alpha Ltd 2012-1					Post Holdings Inc
Class B Pass Through Trust					5.00%, 08/15/2026^(d)			12,305		11,936
6.50%, 05/30/2021^(d)		2,569		2,672	7.75%, 03/15/2024^(d)			4,585		5,067
FBM Finance Inc					Smithfield Foods Inc
8.25%, 08/15/2021^(d)		2,260		2,362	5.25%, 08/01/2018^(d)			1,963		1,978
Fly Leasing Ltd					5.88%, 08/01/2021^(d)			14,255		14,861
6.38%, 10/15/2021		20,730		21,196	TreeHouse Foods Inc
Navient Corp					6.00%, 02/15/2024^(d)			9,730		10,450
5.00%, 10/26/2020		1,360		1,343				$		76,753
5.88%, 03/25/2021		7,480		7,489	Forest Products & Paper - 0.75%
6.13%, 03/25/2024		9,965		9,118	Resolute Forest Products Inc
6.63%, 07/26/2021		4,245		4,277	5.88%, 05/15/2023			9,830		8,331
7.25%, 09/25/2023		10,260		10,222	Sappi Papier Holding GmbH
OneMain Financial Holdings LLC					7.50%, 06/15/2032^(d)			5,985		5,656
7.25%, 12/15/2021^(d)		10,670		11,043	7.75%, 07/15/2017^(d)			5,000		5,087
Springleaf Finance Corp					Tembec Industries Inc
5.25%, 12/15/2019		13,650		13,701	9.00%, 12/15/2019^(d)			9,430		7,497
		$		206,808				$		26,571
Electric - 1.46%					Gas- 0.36	%
Dynegy Inc					NGL Energy Partners LP / NGL Energy
6.75%, 11/01/2019		3,500		3,542	Finance Corp
7.38%, 11/01/2022		12,610		12,161	6.88%, 10/15/2021			4,155		4,093
8.00%, 01/15/2025^(d)		2,320		2,239	7.50%, 11/01/2023^(d)			8,565		8,586
Elwood Energy LLC								$		12,679
8.16%, 07/05/2026		6,913		7,742	Hand & Machine Tools - 0.14%
Indiantown Cogeneration LP					Wittur International Holding GmbH
9.77%, 12/15/2020		2,087		2,254	8.50%, 02/15/2023^(d)		EUR	4,900		5,034
Mirant Mid-Atlantic Series B Pass Through
Trust					Healthcare - Products - 2.55%
9.13%, 06/30/2017		220		180	ConvaTec Finance International SA
Mirant Mid-Atlantic Series C Pass Through					8.25%, PIK 9.00%, 01/15/2019^(d),(e)		$	17,065		17,065
Trust					ConvaTec Healthcare E SA
10.06%, 12/30/2028		11,422		9,023	10.50%, 12/15/2018 ^(d)			300		303
NRG Energy Inc					DJO Finco Inc / DJO Finance LLC / DJO
6.25%, 05/01/2024		6,760		6,557	Finance Corp
6.63%, 01/15/2027^(d)		1,960		1,836	8.13%, 06/15/2021^(d)			13,650		12,524
7.25%, 05/15/2026^(d)		6,470		6,366
					Hill-Rom Holdings Inc
		$		51,900	5.75%, 09/01/2023^(d),(f)			6,440		6,762
Entertainment - 3.42%					Kinetic Concepts Inc / KCI USA Inc
AMC Entertainment Holdings Inc					7.88%, 02/15/2021^(d)			9,455		10,188
5.88%, 11/15/2026^(d),(h)		4,000		4,015	9.63%, 10/01/2021^(d)			7,665		7,406


Schedule of Investments
High Yield Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Healthcare - Products (continued)					Iron & Steel (continued)
Mallinckrodt International Finance SA /					ArcelorMittal (continued)
Mallinckrodt CB LLC					8.00%, 10/15/2039^(f)		$	30,030	$	32,282
5.63%, 10/15/2023^(d)	$	17,635	$	16,577	BlueScope Steel Finance Ltd / BlueScope
Teleflex Inc					Steel Finance USA LLC
4.88%, 06/01/2026		5,020		5,145	6.50%, 05/15/2021^(d)			3,600		3,798
Universal Hospital Services Inc					Commercial Metals Co
7.63%, 08/15/2020		15,410		14,794	4.88%, 05/15/2023			23,670		23,433
		$		90,764	Signode Industrial Group Lux SA/Signode
Healthcare - Services - 5.12%					Industrial Group US Inc
Centene Corp					6.38%, 05/01/2022^(d)			25,690		25,947
4.75%, 05/15/2022		17,250		17,509	Vale Overseas Ltd
4.75%, 01/15/2025^(h)		6,115		6,088	6.25%, 08/10/2026			3,690		3,958
5.63%, 02/15/2021		3,930		4,123				$		107,309
6.13%, 02/15/2024		9,525		10,144	Leisure Products & Services - 0.37%
Fresenius Medical Care US Finance II Inc					NCL Corp Ltd
4.75%, 10/15/2024^(d)		5,770		6,015	4.63%, 11/15/2020^(d)			12,870		13,031
5.88%, 01/31/2022^(d)		7,825		8,863
6.50%, 09/15/2018^(d)		4,895		5,274	Lodging - 0.56%
HCA Holdings Inc					Boyd Gaming Corp
6.25%, 02/15/2021		2,480		2,675	6.88%, 05/15/2023			5,360		5,736
HCA Inc					MGM Resorts International
4.50%, 02/15/2027		17,840		17,617	6.00%, 03/15/2023			6,510		7,047
4.75%, 05/01/2023		21,400		22,283	6.63%, 12/15/2021			6,290		7,025
5.00%, 03/15/2024		17,315		18,034				$		19,808
5.25%, 04/15/2025		3,915		4,101	Machinery - Construction & Mining - 0.16%
5.25%, 06/15/2026		3,825		3,997	Vander Intermediate Holding II Corp
5.88%, 03/15/2022		8,015		8,817	9.75%, PIK 10.50%, 02/01/2019 ^(d),(e)			10,621		5,576
IASIS Healthcare LLC / IASIS Capital Corp
8.38%, 05/15/2019		9,545		9,092	Machinery - Diversified - 0.26%
Molina Healthcare Inc					Cloud Crane LLC
5.38%, 11/15/2022		10,005		10,411	10.13%, 08/01/2024 ^(d)			8,745		9,117
MPH Acquisition Holdings LLC
7.13%, 06/01/2024^(d)		16,800		17,974	Media- 8.17	%
WellCare Health Plans Inc					Altice Financing SA
5.75%, 11/15/2020		9,115		9,389	6.50%, 01/15/2022^(d)			2,945		3,078
		$		182,406	6.63%, 02/15/2023^(d)			3,000		3,090
Home Builders - 2.28%					Altice Finco SA
Beazer Homes USA Inc					7.63%, 02/15/2025^(d)			12,580		12,454
8.75%, 03/15/2022^(d)		8,445		8,973	Altice Luxembourg SA
Lennar Corp					7.75%, 05/15/2022^(d)			10,420		10,882
4.13%, 12/01/2018		9,125		9,376	Altice US Finance I Corp
4.50%, 11/15/2019		8,300		8,746	5.50%, 05/15/2026^(d)			3,675		3,749
4.75%, 11/15/2022^(f)		7,561		7,864	CCO Holdings LLC / CCO Holdings Capital
4.88%, 12/15/2023		5,060		5,161	Corp
WCI Communities Inc					5.13%, 05/01/2023^(d)			39,650		40,939
6.88%, 08/15/2021		21,855		23,057	5.50%, 05/01/2026^(d)			2,840		2,909
Woodside Homes Co LLC / Woodside Homes					5.75%, 02/15/2026^(d)			1,680		1,750
Finance Inc					CSC Holdings LLC
6.75%, 12/15/2021^(d)		18,625		18,066	5.50%, 04/15/2027^(d)			3,195		3,241
		$		81,243	6.63%, 10/15/2025^(d)			4,225		4,579
Insurance - 1.87%					10.13%, 01/15/2023 ^(d)			13,135		14,810
CNO Financial Group Inc					DISH DBS Corp
4.50%, 05/30/2020		2,770		2,843	5.88%, 07/15/2022			22,230		22,953
Liberty Mutual Group Inc					5.88%, 11/15/2024			8,205		8,261
7.00%, 03/07/2067^(d),(f)		19,172		16,679	6.75%, 06/01/2021			16,110		17,308
Voya Financial Inc					7.75%, 07/01/2026			9,385		10,306
5.65%, 05/15/2053^(f)		47,227		46,991	7.88%, 09/01/2019			12,500		13,938
		$		66,513	RCN Telecom Services LLC / RCN Capital
Internet - 1.30%					Corp
Netflix Inc					8.50%, 08/15/2020^(d)			16,475		17,556
4.38%, 11/15/2026^(d)		9,805		9,645	SFR Group SA
					6.00%, 05/15/2022^(d)			7,655		7,849
United Group BV
7.88%, 11/15/2020^(d)	EUR	12,000		13,733	7.38%, 05/01/2026^(d)			8,175		8,257
Zayo Group LLC / Zayo Capital Inc					TVN Finance Corp III AB
					7.38%, 12/15/2020^(d)		EUR	1,925		2,205
6.00%, 04/01/2023	$	21,635		22,771
		$		46,149	Unitymedia GmbH
					6.13%, 01/15/2025^(d)		$	8,940		9,320
Iron & Steel - 3.01%
AK Steel Corp					Unitymedia Hessen GmbH & Co KG /
7.50%, 07/15/2023		5,570		6,002	Unitymedia NRW GmbH
					5.50%, 01/15/2023^(d)			16,650		17,254
7.63%, 05/15/2020		9,345		9,392
ArcelorMittal					Univision Communications Inc
6.50%, 03/01/2021^(f)		2,275		2,497	6.75%, 09/15/2022^(d)			4,516		4,759
					8.50%, 05/15/2021^(d)			4,264		4,394


Schedule of Investments
High Yield Fund
October 31, 2016



	Principal						Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Media (continued)					Oil & Gas (continued)
UPCB Finance IV Ltd					EP Energy LLC / Everest Acquisition Finance
5.38%, 01/15/2025^(d)	$	2,000	$	2,030	Inc (continued)
Virgin Media Finance PLC					9.38%, 05/01/2020	$	18,180	$	14,271
5.75%, 01/15/2025^(d)		5,000		4,950	Halcon Resources Corp
6.00%, 10/15/2024^(d)		2,940		2,984	8.63%, 02/01/2020^(d)		12,670		12,923
Virgin Media Secured Finance PLC					12.00%, 02/15/2022 ^(d)		1,082		1,158
5.25%, 01/15/2026^(d)		3,965		3,924	Laredo Petroleum Inc
WideOpenWest Finance LLC /					5.63%, 01/15/2022		560		546
WideOpenWest Capital Corp					7.38%, 05/01/2022		5,450		5,613
13.38%, 10/15/2019		6,406		6,854	Murphy Oil Corp
10.25%, 07/15/2019 ^(b)		3,180		3,339	6.88%, 08/15/2024		3,450		3,640
Ziggo Bond Finance BV					Northern Blizzard Resources Inc
4.63%, 01/15/2025^(d)	EUR	1,500		1,667	7.25%, 02/01/2022^(d)		13,414		12,810
6.00%, 01/15/2027^(d)	$	8,705		8,547	Oasis Petroleum Inc
Ziggo Secured Finance BV					6.50%, 11/01/2021		3,655		3,632
5.50%, 01/15/2027^(d)		10,820		10,685	6.88%, 03/15/2022		5,645		5,589
		$		290,821	6.88%, 01/15/2023		11,825		11,589
Metal Fabrication & Hardware - 0.29%					PDC Energy Inc
Wise Metals Intermediate Holdings LLC/Wise					6.13%, 09/15/2024^(d)		3,500		3,640
Holdings Finance Corp					7.75%, 10/15/2022		5,275		5,605
9.75%, PIK 10.50%, 06/15/2019 ^(d),(e)		10,583		10,239	QEP Resources Inc
					5.25%, 05/01/2023		13,091		12,862
Mining - 2.63%					Seven Generations Energy Ltd
Alcoa Nederland Holding BV					6.75%, 05/01/2023^(d)		3,080		3,257
6.75%, 09/30/2024^(d)		4,460		4,616	Sunoco LP / Sunoco Finance Corp
7.00%, 09/30/2026^(d)		7,585		7,811	5.50%, 08/01/2020		7,070		7,176
Aleris International Inc					6.38%, 04/01/2023		10,945		11,191
9.50%, 04/01/2021^(d)		2,100		2,257	Whiting Petroleum Corp
First Quantum Minerals Ltd					5.00%, 03/15/2019		12,900		12,255
7.25%, 05/15/2022^(d)		9,169		8,676	5.75%, 03/15/2021		6,815		6,321
FMG Resources August 2006 Pty Ltd					WPX Energy Inc
6.88%, 04/01/2022^(d)		16,655		17,158	7.50%, 08/01/2020		11,285		11,892
9.75%, 03/01/2022^(d)		6,820		7,911			$		242,542
Freeport-McMoRan Inc					Oil & Gas Services - 0.75%
2.30%, 11/14/2017		9,585		9,489	Archrock Partners LP / Archrock Partners
Midwest Vanadium Pty Ltd					Finance Corp
0.00%, 02/15/2018^(a),(d)		10,696		348	6.00%, 10/01/2022		7,955		7,497
St Barbara Ltd					PHI Inc
8.88%, 04/15/2018^(d)		7,917		8,214	5.25%, 03/15/2019		10,570		10,174
Taseko Mines Ltd					Seventy Seven Operating LLC
7.75%, 04/15/2019		10,635		6,860	0.00%, 11/15/2019^(a),(b),(c)		11,835		—
Teck Resources Ltd					Weatherford International Ltd
3.75%, 02/01/2023		11,625		10,993	8.25%, 06/15/2023		8,650		8,953
6.25%, 07/15/2041		3,845		3,807			$		26,624
8.00%, 06/01/2021^(d)		2,865		3,130	Packaging & Containers - 2.64%
8.50%, 06/01/2024^(d)		2,085		2,413	ARD Finance SA
		$		93,683	7.13%, PIK 7.88%, 09/15/2023^(d),(e)		8,785		8,697
Miscellaneous Manufacturers - 0.67%					Ardagh Packaging Finance PLC / Ardagh
Bombardier Inc					Holdings USA Inc
5.50%, 09/15/2018^(d)		6,875		7,087	3.85%, 12/15/2019^(d),(f)		14,000		14,227
6.13%, 01/15/2023^(d)		3,570		3,099	6.00%, 06/30/2021^(d)		4,280		4,387
7.50%, 03/15/2025^(d)		15,405		13,787	7.00%, 11/15/2020^(d)		1,039		1,070
		$		23,973	7.25%, 05/15/2024^(d)		7,540		7,955
Oil & Gas - 6.81%					Coveris Holdings SA
Baytex Energy Corp					7.88%, 11/01/2019^(d)		12,035		12,426
5.13%, 06/01/2021^(d)		7,195		6,062	Crown Americas LLC / Crown Americas
Carrizo Oil & Gas Inc					Capital Corp V
6.25%, 04/15/2023		1,510		1,552	4.25%, 09/30/2026^(d)		2,000		1,962
7.50%, 09/15/2020		14,800		15,373	Crown Cork & Seal Co Inc
Chaparral Energy Inc					7.38%, 12/15/2026		15,449		17,342
0.00%, 10/01/2020^(a)		7,360		5,741	Reynolds Group Issuer Inc / Reynolds Group
0.00%, 11/15/2022^(a)		18,979		14,709	Issuer LLC / Reynolds Group Issuer
Chesapeake Energy Corp					(Luxembourg) S.A.
8.00%, 12/15/2022^(d)		11,430		11,594	4.38%, 07/15/2021^(d),(f)		6,620		6,752
Continental Resources Inc/OK					5.13%, 07/15/2023^(d)		7,145		7,335
4.50%, 04/15/2023		14,075		13,406	5.75%, 10/15/2020		8,115		8,328
5.00%, 09/15/2022		8,120		7,958	7.00%, 07/15/2024^(d)		1,950		2,084
Denbury Resources Inc					9.88%, 08/15/2019		1,590		1,630
5.50%, 05/01/2022		18,285		14,445			$		94,195
EP Energy LLC / Everest Acquisition Finance					Pharmaceuticals - 0.68%
Inc					Valeant Pharmaceuticals International Inc
6.38%, 06/15/2023		8,430		5,732	5.63%, 12/01/2021^(d)		10,350		8,487


Schedule of Investments
High Yield Fund
October 31, 2016



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
	Pharmaceuticals (continued)						Retail (continued)
	Valeant Pharmaceuticals International						JC Penney Corp Inc
	Inc (continued)						5.65%, 06/01/2020	$	8,740	$	8,653
	5.88%, 05/15/2023^(d)		$	3,060	$	2,410	5.88%, 07/01/2023^(d)		3,550		3,657
	7.50%, 07/15/2021^(d)			15,020		13,368	KFC Holding Co/Pizza Hut Holdings
				$		24,265	LLC/Taco Bell of America LLC
	Pipelines - 2.30%						5.00%, 06/01/2024^(d)		11,905		12,381
	Antero Midstream Partners LP / Antero						5.25%, 06/01/2026^(d)		7,420		7,735
	Midstream Finance Corp						L Brands Inc
	5.38%, 09/15/2024^(d)			4,025		4,055	6.88%, 11/01/2035		7,245		7,680
	Cheniere Corpus Christi Holdings LLC						Landry's Inc
	7.00%, 06/30/2024^(d)			670		710	6.75%, 10/15/2024^(d)		11,420		11,648
	Energy Transfer Equity LP						Michaels Stores Inc
	5.88%, 01/15/2024			7,960		8,090	5.88%, 12/15/2020^(d)		12,293		12,646
	MPLX LP						PetSmart Inc
	4.88%, 06/01/2025			9,997		10,428	7.13%, 03/15/2023^(d)		11,930		12,482
	Sabine Pass Liquefaction LLC						Tops Holding LLC / Tops Markets II Corp
	5.00%, 03/15/2027^(d)			2,980		3,032	8.00%, 06/15/2022^(d)		9,215		8,109
	5.63%, 02/01/2021^(f)			10,410		10,957	Yum! Brands Inc
	5.63%, 03/01/2025			20,000		21,163	3.88%, 11/01/2020		5,785		5,959
	6.25%, 03/15/2022			4,915		5,382			$		102,092
	Tesoro Logistics LP / Tesoro Logistics						Savings & Loans - 0.00%
	Finance Corp						Washington Mutual Bank / Henderson NV
	6.13%, 10/15/2021			13,410		14,030	0.00%, 06/15/2011^(a),(c)		3,500		—
	6.25%, 10/15/2022			2,075		2,200	0.00%, 01/15/2013^(a),(b),(c)		3,000		—
	6.38%, 05/01/2024			1,750		1,886	0.00%, 01/15/2015^(a),(c),(f)		2,000		—
				$		81,933			$		—
	Private Equity - 0.38%						Semiconductors - 0.98%
	Icahn Enterprises LP / Icahn Enterprises						Micron Technology Inc
	Finance Corp						5.50%, 02/01/2025		6,860		6,725
	5.88%, 02/01/2022			7,100		6,754	5.63%, 01/15/2026^(d)		2,165		2,100
	6.00%, 08/01/2020			7,060		6,936	7.50%, 09/15/2023^(d)		6,605		7,290
				$		13,690	NXP BV / NXP Funding LLC
	Real Estate - 1.00%						4.13%, 06/01/2021^(d)		5,010		5,348
	Crescent Communities LLC/Crescent						5.75%, 02/15/2021^(d)		805		837
	Ventures Inc						Sensata Technologies UK Financing Co plc
	8.88%, 10/15/2021^(d)			9,595		9,631	6.25%, 02/15/2026^(d)		11,500		12,449
	Crescent Resources LLC / Crescent Ventures								$		34,749
	Inc						Shipbuilding - 0.33%
	10.25%, 08/15/2017 ^(d)			16,155		16,195	Huntington Ingalls Industries Inc
	Kennedy-Wilson Inc						5.00%, 11/15/2025^(d)		11,345		11,934
	5.88%, 04/01/2024			9,750		9,860
				$		35,686	Software - 1.62%
	REITS- 2.86	%					Activision Blizzard Inc
	DuPont Fabros Technology LP						6.13%, 09/15/2023^(d)		15,090		16,618
	5.88%, 09/15/2021			12,075		12,649	First Data Corp
	Equinix Inc						5.00%, 01/15/2024^(d)		13,610		13,814
	5.38%, 01/01/2022			10,065		10,669	5.75%, 01/15/2024^(d)		5,570		5,654
	5.88%, 01/15/2026			15,400		16,461	MSCI Inc
	Iron Mountain Inc						5.25%, 11/15/2024^(d)		6,675		7,009
	4.38%, 06/01/2021^(d)			6,430		6,639	5.75%, 08/15/2025^(d)		3,315		3,524
	Iron Mountain US Holdings Inc						Quintiles IMS Inc
	5.38%, 06/01/2026^(d)			9,655		9,751	5.00%, 10/15/2026^(d)		10,740		11,102
	iStar Inc								$		57,721
	4.88%, 07/01/2018			7,230		7,230	Telecommunications - 6.79%
	6.50%, 07/01/2021			6,745		6,796	CenturyLink Inc
	9.00%, 06/01/2017			8,295		8,606	5.63%, 04/01/2025		4,870		4,566
	MGM Growth Properties Operating						7.50%, 04/01/2024		4,005		4,170
	Partnership LP / MGP Finance Co-Issuer Inc						Frontier Communications Corp
	5.63%, 05/01/2024^(d)			11,260		11,985	8.88%, 09/15/2020		3,175		3,373
	MPT Operating Partnership LP / MPT Finance						11.00%, 09/15/2025		19,160		19,618
	Corp						10.50%, 09/15/2022		13,675		14,222
	5.25%, 08/01/2026			4,390		4,478	Goodman Networks Inc
	6.38%, 03/01/2024			4,760		5,129	12.13%, 07/01/2018 ^(b)		14,363		6,140
	VEREIT Operating Partnership LP						Intelsat Jackson Holdings SA
	4.88%, 06/01/2026			1,300		1,366	7.25%, 04/01/2019		3,985		3,213
				$		101,759	7.25%, 10/15/2020		16,475		12,490
	Retail - 2.87%						8.00%, 02/15/2024^(d)		825		829
	Claire's Stores Inc						Intelsat Luxembourg SA
	9.00%, 03/15/2019^(d)			8,139		4,070	7.75%, 06/01/2021		5,940		1,930
	Dollar Tree Inc						Level 3 Communications Inc
	5.75%, 03/01/2023			6,640		7,072	5.75%, 12/01/2022		5,470		5,634


Schedule of Investments
High Yield Fund
October 31, 2016



			Principal				SENIOR FLOATING RATE INTERESTS		Principal
BONDS (continued)			Amount (000's) Value (000's)				(continued)		Amount (000's)			Value(000	's)
Telecommunications (continued)							Entertainment (continued)
Level 3 Financing Inc							Lions Gate Entertainment Corp, Term Loan
5.13%, 05/01/2023			$	4,440	$	4,484	B (continued)
5.38%, 01/15/2024				11,395		11,623	5.00%, 03/11/2022^(f)		$	10,245	$	10,424
Play Finance 1 SA											$	29,114
6.50%, 08/01/2019			EUR	3,000		3,409	Forest Products & Paper - 0.64%
Sprint Capital Corp							Caraustar Industries Inc, Term Loan B
6.88%, 11/15/2028			$	7,235		6,656	8.00%, 04/26/2019^(f)			11,413		11,520
Sprint Communications Inc							8.00%, 05/01/2019^(f)			11,274		11,380
6.00%, 11/15/2022				16,500		15,376					$	22,900
7.00%, 08/15/2020				12,300		12,792	Healthcare - Services - 0.57%
9.00%, 11/15/2018^(d)				6,850		7,535	Acadia Healthcare Co Inc, Term Loan B2
Sprint Corp							3.75%, 02/16/2023^(f)			883		886
7.13%, 06/15/2024				8,840		8,310	Lantheus Medical Imaging Inc, Term Loan B
7.88%, 09/15/2023				12,250		12,128	7.00%, 06/24/2022^(f)			10,929		10,710
T-Mobile USA Inc							MPH Acquisition Holdings LLC, Term Loan
6.13%, 01/15/2022				4,110		4,336	B
6.25%, 04/01/2021				20,800		21,658	5.00%, 05/25/2023^(f)			8,692		8,782
6.50%, 01/15/2024				4,025		4,307					$	20,378
6.50%, 01/15/2026				9,620		10,545	Insurance - 0.25%
6.63%, 04/28/2021				12,140		12,732	Lonestar Intermediate Super Holdings LLC,
Wind Acquisition Finance SA							PIK Term Loan
		(d)
4.75%, 07/15/2020				10,885		10,939	10.00%, PIK 0.75%, 08/10/2021 ^(e),(f)			8,855		8,914
7.38%, 04/23/2021^(d)				18,205		18,706
				$		241,721	Internet - 0.02%
Transportation - 1.85%							Zayo Group LLC, Term Loan B
Eletson Holdings Inc							3.75%, 05/06/2021^(f)			722		725
9.63%, 01/15/2022^(d)				17,244		12,674
Hornbeck Offshore Services Inc							Media- 0.63	%
5.00%, 03/01/2021				9,980		5,938	Adria Topco BV, PIK Term Loan
Navios Maritime Acquisition Corp / Navios							9.00%, PIK 9.00%, 06/04/2019^(e),(f)		EUR	1,529		1,717
Acquisition Finance US Inc							Univision Communications Inc, Term Loan
8.13%, 11/15/2021^(d)				37,660		28,433
							C3
Navios Maritime Holdings Inc / Navios							4.00%, 03/01/2020^(f)		$	3,192		3,195
Maritime Finance II US Inc							Univision Communications Inc, Term Loan
7.38%, 01/15/2022^(d)				16,245		8,448	C4
Navios South American Logistics Inc / Navios							4.00%, 03/01/2020^(f)			7,840		7,853
Logistics Finance US Inc							WideOpenWest Finance LLC, Term Loan B
7.25%, 05/01/2022^(d)				13,220		10,444	4.50%, 08/11/2023^(f)			9,651		9,624
				$		65,937					$	22,389
TOTAL BONDS				$		3,141,844	Mining - 0.15%
			Principal				FMG Resources August 2006 Pty Ltd, Term
CONVERTIBLE BONDS - 0.31%			Amount (000's) Value (000's)				Loan B
Food Service - 0.00%							3.75%, 06/30/2019^(f)			5,282		5,277
Fresh Express Delivery Holding Group Co
Ltd							Oil & Gas - 0.66%
0.00%, 11/09/2009^(a),(c)			HKD	46,500		—	California Resources Corp, Term Loan
0.00%, 10/18/2010^(a),(c)			CNY	245,000		—	11.37%, 12/31/2021 ^(f)			10,680		11,468
				$		—	Chesapeake Energy Corp, Term Loan 1.5
Semiconductors - 0.31%							8.50%, 08/17/2021^(f)			6,215		6,638
Jazz US Holdings Inc							Seadrill Operating LP, Term Loan B
8.00%, 12/31/2018			$	6,858		11,165	4.00%, 02/12/2021^(f)			9,737		5,410
											$	23,516
TOTAL CONVERTIBLE BONDS				$		11,165	Oil & Gas Services - 0.11%
SENIOR FLOATING RATE INTERESTS -			Principal				Seventy Seven Operating LLC, Term Loan B
6.17	%		Amount (000's) Value (000's)				3.89%, 06/17/2021^(f)			4,443		4,091
Aerospace & Defense - 0.40%
B/E Aerospace Inc, Term Loan B							Packaging & Containers - 0.19%
3.82%, 12/16/2021^(f)			$	14,232	$	14,312	SIG Combibloc US Acquisition Inc, Term
							Loan B
Chemicals - 0.24%							4.00%, 03/11/2022^(f)			6,703		6,706
Emerald Performance Materials LLC, Term
Loan							Pharmaceuticals - 0.18%
7.75%, 07/22/2022^(f)				8,475		8,422	Valeant Pharmaceuticals International Inc,
							Term Loan BF1
Entertainment - 0.82%							5.50%, 04/01/2022^(f)			6,283		6,260
CCM Merger Inc, Term Loan B
0.00%, 08/06/2021^(f),(i)				1,000		1,003	REITS- 0.31	%
4.50%, 07/30/2021^(f)				4,664		4,679	iStar Inc, Term Loan B
Lions Gate Entertainment Corp, Term Loan							5.50%, 07/01/2020^(f)			10,929		11,029
B
0.00%, 10/13/2023^(f),(i)				13,030		13,008


Schedule of Investments
High Yield Fund I
October 31, 2016



	COMMON STOCKS - 0.31%		Shares Held	Value(000			's)		Principal
	Electric - 0.27%							BONDS (continued)	Amount (000's) Value (000's)
	Dynegy Inc ^(a)		7,500	$		80		Airlines (continued)
	TCEH Corp ^(a)		164,087			2,494		Continental Airlines 2012-3 Class C Pass Thru
	Texas Competitive Electric Holdings Co LLC		1,075,000			11		Certificates
	(a),(b)							6.13%, 04/29/2018	$345	$	362
				$		2,585		Delta Air Lines 2012-1 Class B Pass Through
	Oil & Gas - 0.02%							Trust
	Penn Virginia Corp ^(a),(c)		2,279			80		6.88%, 05/07/2019^(f)	285		308
	Penn Virginia Corp ^(a),(b),(c)		2,826			99		Northwest Airlines 2007-1 Class A Pass
	Penn Virginia Corp ^(a),(b)		373,000			5		Through Trust
				$		184		7.03%, 05/01/2021	1,041		1,171
	Packaging & Containers - 0.00%							UAL 2007-1 Pass Through Trust
	Constar International ^(a),(b),(c)		9,689			—		6.64%, 01/02/2024	283		302
									$		3,235
	Retail - 0.00%							Apparel - 0.18%
	Nebraska Book Holdings Inc ^(a),(b)		20,064			1		Hanesbrands Inc
	Neebo, Inc - Warrants ^(a),(b),(c)		3,508			—		4.88%, 05/15/2026^(f)	1,655		1,684
	Neebo, Inc - Warrants ^(a),(b),(c)		7,519			—		Levi Strauss & Co
				$		1		5.00%, 05/01/2025	50		52
	Telecommunications - 0.02%								$		1,736
	NII Holdings Inc ^(a)		77,871			191		Automobile Manufacturers - 0.35%
								Fiat Chrysler Automobiles NV
	TOTAL COMMON STOCKS			$		2,961		4.50%, 04/15/2020	1,113		1,141
	INVESTMENT COMPANIES - 2.81%		Shares Held	Value(000			's)	5.25%, 04/15/2023	630		642
								General Motors Co
	Money Market Funds - 2.81%							0.00%, 12/01/2020^(a),(b),(c)	25		—
	BlackRock Liquidity Funds FedFund Portfolio		27,064,896			27,065		0.00%, 12/01/2020^(a),(b),(c)	50		—
								0.00%, 07/15/2023^(a),(b),(c)	1,000		—
	TOTAL INVESTMENT COMPANIES			$		27,065		0.00%, 09/01/2025^(a),(b),(c)	700		—
	PREFERRED STOCKS - 0.16%		Shares Held	Value(000			's)	0.00%, 05/01/2028^(a),(b),(c)	150		—
	Insurance - 0.16%							0.00%, 03/06/2032^(a),(b),(c)	75		—
	XLIT Ltd 4.00%^(b),(d),(e)		1,935	$		1,529
								0.00%, 07/15/2033^(a),(b),(c)	100		—
								0.00%, 07/15/2033^(a),(b),(c)	5,050		—
	Packaging & Containers - 0.00%							0.00%, 03/15/2036^(a),(b),(c)	725		—
	Constar International %^(a),(b),(c)		977			—
								Jaguar Land Rover Automotive PLC
								4.25%, 11/15/2019^(f)	766		793
	TOTAL PREFERRED STOCKS			$		1,529		5.63%, 02/01/2023^(f)	300		310
			Principal					JB Poindexter & Co Inc
	BONDS- 89.00%		Amount (000's)	Value(000			's)	9.00%, 04/01/2022^(f)	449		472
	Advertising - 0.33%								$		3,358
	Acosta Inc							Automobile Parts & Equipment - 0.85%
	7.75%, 10/01/2022^(f)	$	2,195		$	1,882
								American Axle & Manufacturing Inc
	Lamar Media Corp							6.63%, 10/15/2022	700		738
	5.38%, 01/15/2024		56			59		Cooper-Standard Automotive Inc
	5.75%, 02/01/2026		689			738		5.63%, 11/15/2026^(f),(g)	309		311
	Outfront Media Capital LLC / Outfront Media							Goodyear Tire & Rubber Co/The
	Capital Corp							5.00%, 05/31/2026	900		908
	5.63%, 02/15/2024		125			130		5.13%, 11/15/2023	580		599
	5.88%, 03/15/2025		365			381		IHO Verwaltungs GmbH
				$		3,190		4.13%, PIK 4.88%, 09/15/2021^(f),(h)	640		656
	Aerospace & Defense - 0.58%							4.50%, PIK 5.25%, 09/15/2023^(f),(h)	650		658
	Arconic Inc							4.75%, PIK 5.50%, 09/15/2026^(f),(h)	235		234
	5.13%, 10/01/2024		1,505			1,569		MPG Holdco I Inc
	5.40%, 04/15/2021		415			442		7.38%, 10/15/2022	1,329		1,354
	5.87%, 02/23/2022		208			222		Tenneco Inc
	5.90%, 02/01/2027		129			136		5.38%, 12/15/2024	460		480
	6.15%, 08/15/2020		40			44		ZF North America Capital Inc
	6.75%, 01/15/2028		881			963		4.00%, 04/29/2020^(f)	675		710
	Orbital ATK Inc							4.50%, 04/29/2022^(f)	670		709
	5.25%, 10/01/2021		241			249		4.75%, 04/29/2025^(f)	759		801
	5.50%, 10/01/2023		170			177			$		8,158
	TransDigm Inc							Banks- 0.74%
	6.00%, 07/15/2022		843			879		Bank of America Corp
	(f)
	6.38%, 06/15/2026		343			351		6.10%, 12/29/2049^(d),(e)	935		977
	6.50%, 07/15/2024		301			317		Barclays PLC
	7.50%, 07/15/2021		215			227		8.25%, 12/29/2049^(d),(e)	435		440
				$		5,576		Citigroup Inc
	Airlines - 0.34%							6.13%, 12/29/2049^(d),(e)	25		26
	American Airlines Group Inc							6.25%, 12/29/2049^(d),(e)	535		576
	5.50%, 10/01/2019^(f)		725			749
								Credit Agricole SA
	Continental Airlines 2005-ERJ1 Pass Through							8.13%, 12/29/2049^(d),(e),(f)	440		473
	Trust							Royal Bank of Scotland Group PLC
	9.80%, 10/01/2022		311			343		6.00%, 12/19/2023	1,042		1,076
								6.13%, 12/15/2022	2,551		2,693


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
Banks (continued)					Chemicals (continued)
Royal Bank of Scotland Group					NOVA Chemicals Corp
PLC (continued)					5.00%, 05/01/2025^(f)		$	1,778	$	1,785
8.00%, 12/29/2049^(d),(e)	$	469	$	446	5.25%, 08/01/2023^(f)			210		214
8.62%, 12/29/2049^(d),(e)		200		199	PolyOne Corp
Societe Generale SA					5.25%, 03/15/2023			1,079		1,104
7.38%, 12/29/2049^(d),(e),(f)		200		198	Unifrax I LLC / Unifrax Holding Co
		$		7,104	7.50%, 02/15/2019^(f)			725		698
Beverages - 0.46%					Valvoline Inc
Constellation Brands Inc					5.50%, 07/15/2024^(f)			220		232
3.88%, 11/15/2019		375		392	Versum Materials Inc
4.25%, 05/01/2023		1,750		1,851	5.50%, 09/30/2024^(f)			500		511
4.75%, 11/15/2024		1,075		1,177				$		14,131
4.75%, 12/01/2025		177		194	Coal- 0.05	%
6.00%, 05/01/2022		195		226	CONSOL Energy Inc
Cott Beverages Inc					5.88%, 04/15/2022			540		499
6.75%, 01/01/2020		621		645
		$		4,485	Commercial Services - 3.27%
Biotechnology - 0.12%					ACE Cash Express Inc
Concordia International Corp					11.00%, 02/01/2019 ^(f)			1,106		625
7.00%, 04/15/2023^(f)		1,615		929	ADT Corp/The
9.00%, 04/01/2022^(f)		187		182	4.13%, 06/15/2023			1,717		1,679
		$		1,111	4.88%, 07/15/2032^(f)			980		833
Building Materials - 1.45%					Ahern Rentals Inc
Cemex Finance LLC					7.38%, 05/15/2023^(f)			688		451
6.00%, 04/01/2024^(f)		757		784	AMN Healthcare Inc
					5.13%, 10/01/2024^(f)			273		277
Cemex SAB de CV
6.13%, 05/05/2025^(f)		780		807	APX Group Inc
7.75%, 04/16/2026^(f)		2,775		3,110	8.75%, 12/01/2020			685		663
Hardwoods Acquisition Inc					Cenveo Corp
7.50%, 08/01/2021^(f)		778		564	8.50%, 09/15/2022^(f)			420		294
Masonite International Corp					Garda World Security Corp
5.63%, 03/15/2023^(f)		433		448	7.25%, 11/15/2021^(f)			947		904
NCI Building Systems Inc					Hertz Corp/The
8.25%, 01/15/2023^(f)		420		459	4.25%, 04/01/2018			1,265		1,297
NWH Escrow Corp					5.50%, 10/15/2024^(f)			1,270		1,233
7.50%, 08/01/2021^(f)		197		143	5.88%, 10/15/2020			115		118
Standard Industries Inc/NJ					IHS Markit Ltd
5.13%, 02/15/2021^(f)		125		131	5.00%, 11/01/2022^(f)			2,332		2,466
5.38%, 11/15/2024^(f)		745		770	Jaguar Holding Co II / Pharmaceutical Product
5.50%, 02/15/2023^(f)		285		296	Development LLC
6.00%, 10/15/2025^(f)		592		632	6.38%, 08/01/2023^(f)			1,235		1,241
Summit Materials LLC / Summit Materials					Live Nation Entertainment Inc
					4.88%, 11/01/2024^(f)			450		449
Finance Corp
6.13%, 07/15/2023		1,350		1,384	Prime Security Services Borrower LLC /
US Concrete Inc					Prime Finance Inc
					9.25%, 05/15/2023^(f)			2,112		2,244
6.38%, 06/01/2024		449		467
USG Corp					RR Donnelley & Sons Co
5.50%, 03/01/2025^(f)		395		421	6.00%, 04/01/2024			845		807
6.30%, 11/15/2016		480		479	6.50%, 11/15/2023			720		700
9.50%, 01/15/2018^(e)		2,875		3,098	7.00%, 02/15/2022			51		51
		$		13,993	7.63%, 06/15/2020			2,965		3,202
Chemicals - 1.47%					7.88%, 03/15/2021			1,215		1,306
Axalta Coating Systems LLC					Service Corp International/US
4.88%, 08/15/2024^(f)		285		289	4.50%, 11/15/2020			145		148
Blue Cube Spinco Inc					5.38%, 01/15/2022			565		586
9.75%, 10/15/2023		1,202		1,412	5.38%, 05/15/2024			1,845		1,937
10.00%, 10/15/2025		1,533		1,840	8.00%, 11/15/2021			370		439
CF Industries Inc					Syniverse Holdings Inc
4.95%, 06/01/2043		163		135	9.13%, 01/15/2019			1,860		1,488
5.15%, 03/15/2034		565		508	Team Health Inc
					7.25%, 12/15/2023^(f)			2,120		2,399
5.38%, 03/15/2044		212		181
CVR Partners LP / CVR Nitrogen Finance					United Rentals North America Inc
Corp					5.50%, 07/15/2025			550		557
9.25%, 06/15/2023^(f)		1,606		1,575	5.75%, 11/15/2024			435		451
GCP Applied Technologies Inc					5.88%, 09/15/2026			605		616
9.50%, 02/01/2023^(f)		525		595	6.13%, 06/15/2023			2,000		2,090
Hexion Inc								$		31,551
6.63%, 04/15/2020		2,141		1,873	Computers - 2.08%
Momentive Performance - Escrow					Diamond 1 Finance Corp / Diamond 2 Finance
0.00%, 10/15/2020^(a),(b),(c)		1,325		—	Corp
					3.48%, 06/01/2019^(f)			5		5
Momentive Performance Materials Inc
3.88%, 10/24/2021		1,325		1,179	4.42%, 06/15/2021^(f)			277		290
					5.45%, 06/15/2023^(f)			800		857


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Computers (continued)					Diversified Financial Services (continued)
Diamond 1 Finance Corp / Diamond 2 Finance					Ally Financial Inc (continued)
Corp (continued)					8.00%, 03/15/2020	$	2,505	$	2,837
5.88%, 06/15/2021^(f)	$	1,555	$	1,638	8.00%, 11/01/2031		725		866
6.02%, 06/15/2026^(f)		5,085		5,543	CIT Group Inc
7.13%, 06/15/2024^(f)		315		345	3.88%, 02/19/2019		1,460		1,482
8.10%, 07/15/2036^(f)		112		134	4.25%, 08/15/2017		330		334
8.35%, 07/15/2046^(f)		160		194	5.00%, 05/15/2017		3,395		3,437
Diebold Inc					5.00%, 08/15/2022		1,488		1,587
8.50%, 04/15/2024^(f)		628		666	5.25%, 03/15/2018		1,930		1,999
EMC Corp					5.38%, 05/15/2020		1,582		1,691
1.88%, 06/01/2018		3,650		3,599	5.50%, 02/15/2019^(f)		675		710
2.65%, 06/01/2020		242		235	6.63%, 04/01/2018^(f)		3,654		3,837
Harland Clarke Holdings Corp					CNG Holdings Inc
6.88%, 03/01/2020^(f)		380		364	9.38%, 05/15/2020^(f)		920		603
Riverbed Technology Inc					E*TRADE Financial Corp
8.88%, 03/01/2023^(f)		560		596	4.63%, 09/15/2023		382		396
Western Digital Corp					5.38%, 11/15/2022		465		497
7.38%, 04/01/2023^(f)		297		325	ILFC E-Capital Trust I
10.50%, 04/01/2024 ^(f)		4,573		5,282	4.00%, 12/21/2065^(e),(f)		1,943		1,550
		$		20,073	ILFC E-Capital Trust II
Consumer Products - 0.26%					4.25%, 12/21/2065^(e),(f)		915		746
Central Garden & Pet Co					International Lease Finance Corp
6.13%, 11/15/2023		25		27	8.63%, 01/15/2022		1,300		1,594
Prestige Brands Inc					8.88%, 09/01/2017		730		769
6.38%, 03/01/2024^(f)		415		440	Nationstar Mortgage LLC / Nationstar Capital
Spectrum Brands Inc					Corp
5.75%, 07/15/2025		1,122		1,215	6.50%, 07/01/2021		497		493
6.13%, 12/15/2024		736		806	6.50%, 06/01/2022		142		138
6.63%, 11/15/2022		28		30	7.88%, 10/01/2020		515		525
		$		2,518	9.63%, 05/01/2019		126		132
Cosmetics & Personal Care - 0.35%					Navient Corp
Edgewell Personal Care Co					4.88%, 06/17/2019		3,665		3,697
4.70%, 05/19/2021		580		609	5.50%, 01/15/2019		640		653
4.70%, 05/24/2022		2,080		2,180	NFP Corp
					9.00%, 07/15/2021^(f)		420		428
Revlon Consumer Products Corp
5.75%, 02/15/2021^(e)		325		329	Quicken Loans Inc
6.25%, 08/01/2024^(f)		273		281	5.75%, 05/01/2025^(f)		1,384		1,367
		$		3,399	Speedy Cash Intermediate Holdings Corp
					10.75%, 05/15/2018 ^(f)		505		400
Distribution & Wholesale - 0.46%
Global Partners LP / GLP Finance Corp					Springleaf Finance Corp
6.25%, 07/15/2022		520		497	7.75%, 10/01/2021		73		76
H&E Equipment Services Inc					8.25%, 12/15/2020		347		376
7.00%, 09/01/2022		424		446			$		54,402
HD Supply Inc					Electric - 3.20%
5.25%, 12/15/2021^(f)		1,580		1,679	AES Corp/VA
5.75%, 04/15/2024^(f)		1,320		1,385	4.88%, 05/15/2023		1,000		992
Univar USA Inc					5.50%, 04/15/2025		525		530
6.75%, 07/15/2023^(f)		443		459	6.00%, 05/15/2026		328		338
		$		4,466	Calpine Corp
					0.00%, 07/15/2013^(a),(b),(c)		1,500		—
Diversified Financial Services - 5.64%					5.25%, 06/01/2026^(f)		995		1,010
AerCap Ireland Capital Ltd / AerCap Global
Aviation Trust					5.38%, 01/15/2023		1,615		1,599
2.75%, 05/15/2017		2,420		2,423	5.50%, 02/01/2024		1,000		975
					6.00%, 01/15/2022^(f)		2,100		2,195
4.50%, 05/15/2021		950		988
Aircastle Ltd					Dynegy Inc
4.63%, 12/15/2018		690		719	5.88%, 06/01/2023		1,207		1,081
5.00%, 04/01/2023		530		549	6.75%, 11/01/2019		575		582
5.13%, 03/15/2021		1,170		1,242	7.38%, 11/01/2022		900		868
5.50%, 02/15/2022		405		434	7.63%, 11/01/2024		370		354
					8.00%, 01/15/2025^(f)		340		328
6.25%, 12/01/2019		1,532		1,668
Alliance Data Systems Corp					GenOn Energy Inc
5.88%, 11/01/2021^(f)		210		212	9.88%, 10/15/2020		1,300		972
Ally Financial Inc					InterGen NV
					7.00%, 06/30/2023^(f)		643		545
2.75%, 01/30/2017		700		700
3.25%, 09/29/2017		335		337	IPALCO Enterprises Inc
3.25%, 11/05/2018		140		140	5.00%, 05/01/2018		1,665		1,740
3.60%, 05/21/2018		1,385		1,397	NRG Energy Inc
4.13%, 03/30/2020		465		473	6.25%, 07/15/2022		1,765		1,770
4.63%, 05/19/2022		4,297		4,394	6.25%, 05/01/2024		1,000		970
4.63%, 03/30/2025		825		839	6.63%, 03/15/2023		1,500		1,497
					6.63%, 01/15/2027^(f)		2,783		2,606
5.50%, 02/15/2017		1,935		1,952
					7.25%, 05/15/2026^(f)		1,720		1,692
6.25%, 12/01/2017		2,620		2,715
					7.88%, 05/15/2021		280		293


Schedule of Investments
High Yield Fund I
October 31, 2016



	Principal							Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)
Electric (continued)					Entertainment (continued)
NRG Yield Operating LLC					Scientific Games International
5.00%, 09/15/2026^(f)	$	725	$	703	Inc (continued)
Talen Energy Supply LLC					6.63%, 05/15/2021		$	925	$	761
4.60%, 12/15/2021		2,380		1,950	7.00%, 01/01/2022^(f)			330		351
4.62%, 07/15/2019^(e),(f)		3,591		3,411	10.00%, 12/01/2022			2,895		2,678
6.50%, 06/01/2025		1,427		1,192	Shingle Springs Tribal Gaming Authority
Terraform Global Operating LLC					9.75%, 09/01/2021^(f)			562		613
9.75%, 08/15/2022^(f)		682		709	Six Flags Entertainment Corp
		$		30,902	4.88%, 07/31/2024^(f)			460		461
Electrical Components & Equipment - 0.14%					5.25%, 01/15/2021^(f)			1,180		1,215
Anixter Inc					WMG Acquisition Corp
5.50%, 03/01/2023		425		447	4.88%, 11/01/2024^(f)			105		105
EnerSys					5.00%, 08/01/2023^(f)			90		91
5.00%, 04/30/2023^(f)		363		372	5.63%, 04/15/2022^(f)			1,175		1,222
WESCO Distribution Inc					6.75%, 04/15/2022^(f)			650		687
5.38%, 06/15/2024^(f)		500		506				$		24,587
		$		1,325	Environmental Control - 0.10%
Electronics - 0.27%					Casella Waste Systems Inc
Flex Ltd					7.75%, 02/15/2019			979		1,000
4.63%, 02/15/2020		245		262
5.00%, 02/15/2023		2,180		2,366	Food- 2.73	%
		$		2,628	Albertsons Cos LLC / Safeway Inc / New
Energy - Alternate Sources - 0.04%					Albertson's Inc / Albertson's LLC
TerraForm Power Operating LLC					5.75%, 03/15/2025^(f)			1,650		1,628
5.88%, 02/01/2023^(f)		209		209	6.63%, 06/15/2024^(f)			2,942		3,052
6.13%, 06/15/2025^(f)		210		217	B&G Foods Inc
		$		426	4.63%, 06/01/2021			250		257
Engineering & Construction - 0.73%					Bumble Bee Holdings Inc
					9.00%, 12/15/2017^(f)			575		574
AECOM
5.75%, 10/15/2022		444		466	Darling Ingredients Inc
5.88%, 10/15/2024		3,660		3,866	5.38%, 01/15/2022			1,345		1,402
MasTec Inc					Dean Foods Co
					6.50%, 03/15/2023^(f)			1,500		1,597
4.88%, 03/15/2023		1,197		1,166
SBA Communications Corp					FAGE International SA/ FAGE USA Dairy
4.88%, 07/15/2022		520		530	Industry Inc
4.88%, 09/01/2024^(f)		73		73	5.63%, 08/15/2026^(f)			200		207
Tutor Perini Corp					Ingles Markets Inc
7.63%, 11/01/2018		899		898	5.75%, 06/15/2023			445		461
		$		6,999	JBS USA LUX SA / JBS USA Finance Inc
					5.75%, 06/15/2025^(f)			621		609
Entertainment - 2.55%					5.88%, 07/15/2024^(f)			1,421		1,428
AMC Entertainment Holdings Inc					7.25%, 06/01/2021^(f)			1,227		1,258
5.88%, 11/15/2026^(f),(g)		290		291
					7.25%, 06/01/2021^(f)			1,517		1,555
AMC Entertainment Inc					8.25%, 02/01/2020^(f)			993		1,020
5.75%, 06/15/2025		710		712
					Pilgrim's Pride Corp
5.88%, 02/15/2022		685		712	5.75%, 03/15/2025^(f)			395		404
Cedar Fair LP / Canada's Wonderland Co /
					Post Holdings Inc
Magnum Management Corp					5.00%, 08/15/2026^(f)			998		968
5.25%, 03/15/2021		1,325		1,374	6.00%, 12/15/2022^(f)			1,890		1,994
Chukchansi Economic Development					6.75%, 12/01/2021^(f)			1,339		1,433
Authority					7.75%, 03/15/2024^(f)			882		975
9.75%, 05/30/2020^(b),(f)		1,238		631
					8.00%, 07/15/2025^(f)			83		95
Cinemark USA Inc
5.13%, 12/15/2022		500		514	Safeway Inc
EMI Music Publishing Group North America					5.00%, 08/15/2019			19		19
					Smithfield Foods Inc
Holdings Inc					5.88%, 08/01/2021^(f)			1,426		1,487
7.63%, 06/15/2024^(f)		395		427
GLP Capital LP / GLP Financing II Inc					6.63%, 08/15/2022			875		922
4.38%, 04/15/2021		35		37	SUPERVALU Inc
4.88%, 11/01/2020		2,275		2,426	6.75%, 06/01/2021			258		259
5.38%, 11/01/2023		1,725		1,850	7.75%, 11/15/2022			1,955		1,984
5.38%, 04/15/2026		420		446	TreeHouse Foods Inc
					4.88%, 03/15/2022			53		55
International Game Technology PLC					6.00%, 02/15/2024^(f)			285		306
6.25%, 02/15/2022^(f)		265		281
6.50%, 02/15/2025^(f)		430		465	US Foods Inc
					5.88%, 06/15/2024^(f)			340		354
Isle of Capri Casinos Inc
5.88%, 03/15/2021		1,330		1,383				$		26,303
8.88%, 06/15/2020		915		969	Food Service - 0.19%
Regal Entertainment Group					Aramark Services Inc
					5.13%, 01/15/2024^(f)			1,575		1,650
5.75%, 03/15/2022		1,885		1,950
5.75%, 06/15/2023		525		539	5.13%, 01/15/2024			135		141
Scientific Games International Inc								$		1,791
6.25%, 09/01/2020		1,665		1,396


Schedule of Investments
High Yield Fund I
October 31, 2016



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
	Forest Products & Paper - 0.10%						Healthcare - Services (continued)
	Cascades Inc						Fresenius Medical Care US Finance II
	5.75%, 07/15/2023^(f)		$	450	$	455	Inc (continued)
	Clearwater Paper Corp						5.63%, 07/31/2019^(f)	$	1,648	$	1,784
	4.50%, 02/01/2023			395		393	5.88%, 01/31/2022^(f)		1,214		1,375
	5.38%, 02/01/2025^(f)			104		105	6.50%, 09/15/2018^(f)		1,810		1,950
				$		953	Fresenius Medical Care US Finance Inc
	Gas- 0.10	%					5.75%, 02/15/2021^(f)		255		285
	AmeriGas Partners LP / AmeriGas Finance						HCA Holdings Inc
	Corp						6.25%, 02/15/2021		619		668
	5.63%, 05/20/2024			218		229	HCA Inc
	5.88%, 08/20/2026			218		229	3.75%, 03/15/2019		1,300		1,329
	NGL Energy Partners LP / NGL Energy						4.25%, 10/15/2019		2,565		2,661
	Finance Corp						4.50%, 02/15/2027		1,685		1,664
	6.88%, 10/15/2021			516		508	4.75%, 05/01/2023		245		255
				$		966	5.00%, 03/15/2024		2,109		2,197
	Hand & Machine Tools - 0.08%						5.25%, 04/15/2025		1,511		1,583
	Milacron LLC / Mcron Finance Corp						5.25%, 06/15/2026		2,130		2,226
	7.75%, 02/15/2021^(f)			790		808	5.38%, 02/01/2025		1,947		1,988
							5.88%, 03/15/2022		531		584
	Healthcare - Products - 1.14%						5.88%, 05/01/2023		478		507
	Alere Inc						5.88%, 02/15/2026		480		504
	6.38%, 07/01/2023^(f)			111		114	6.50%, 02/15/2020		2,167		2,400
	6.50%, 06/15/2020			813		823	7.50%, 02/15/2022		825		939
	ConvaTec Healthcare E SA						7.69%, 06/15/2025		1,130		1,266
	10.50%, 12/15/2018 ^(f)			1,383		1,399	IASIS Healthcare LLC / IASIS Capital Corp
	DJO Finco Inc / DJO Finance LLC / DJO						8.38%, 05/15/2019		5,242		4,993
	Finance Corp						LifePoint Health Inc
	8.13%, 06/15/2021^(f)			3,510		3,220	5.38%, 05/01/2024^(f)		75		75
	Hill-Rom Holdings Inc						5.50%, 12/01/2021		448		464
	5.75%, 09/01/2023^(e),(f)			325		341	MPH Acquisition Holdings LLC
							7.13%, 06/01/2024^(f)		2,144		2,294
	Hologic Inc
	5.25%, 07/15/2022^(f)			1,135		1,201	Tenet Healthcare Corp
							4.35%, 06/15/2020^(e)		300		302
	Mallinckrodt International Finance SA
	4.75%, 04/15/2023			143		125	4.38%, 10/01/2021		1,155		1,149
	Mallinckrodt International Finance SA /						4.50%, 04/01/2021		750		750
	Mallinckrodt CB LLC						4.75%, 06/01/2020		580		593
	4.88%, 04/15/2020^(f)			390		391	5.50%, 03/01/2019		270		264
	5.50%, 04/15/2025^(f)			985		911	6.00%, 10/01/2020		1,341		1,413
	5.63%, 10/15/2023^(f)			720		677	6.25%, 11/01/2018		1,417		1,499
	5.75%, 08/01/2022^(f)			853		808	6.75%, 06/15/2023		575		528
	Teleflex Inc						6.88%, 11/15/2031		535		429
	4.88%, 06/01/2026			363		372	8.00%, 08/01/2020		603		597
	5.25%, 06/15/2024			592		613	8.13%, 04/01/2022		1,778		1,738
				$		10,995	Universal Health Services Inc
							4.75%, 08/01/2022^(f)		525		539
	Healthcare - Services - 6.10%
							5.00%, 06/01/2026^(f)		1,665		1,727
	Acadia Healthcare Co Inc
	5.63%, 02/15/2023			400		401			$		58,785
	6.13%, 03/15/2021			253		261	Home Builders - 1.32%
	6.50%, 03/01/2024			205		209	CalAtlantic Group Inc
	Amsurg Corp						5.25%, 06/01/2026		550		544
	5.63%, 11/30/2020			364		373	5.38%, 10/01/2022		933		981
	5.63%, 07/15/2022			825		841	5.88%, 11/15/2024		389		415
	Centene Corp						8.38%, 01/15/2021		865		1,027
	4.75%, 05/15/2022			90		91	Lennar Corp
	4.75%, 01/15/2025^(g)			610		607	4.50%, 11/15/2019		820		864
	5.63%, 02/15/2021			540		566	4.75%, 12/15/2017		1,450		1,479
							4.75%, 11/15/2022^(e)		1,810		1,882
	6.13%, 02/15/2024			620		660
	CHS/Community Health Systems Inc						4.88%, 12/15/2023		100		102
	5.13%, 08/15/2018			111		110	M/I Homes Inc
	5.13%, 08/01/2021			613		572	6.75%, 01/15/2021		530		558
	6.88%, 02/01/2022			894		682	Mattamy Group Corp
	7.13%, 07/15/2020			386		312	6.50%, 11/15/2020^(f)		466		465
	8.00%, 11/15/2019			683		601	Meritage Homes Corp
	DaVita Inc						7.00%, 04/01/2022		140		156
	5.00%, 05/01/2025			2,035		1,964	7.15%, 04/15/2020		315		350
	5.13%, 07/15/2024			1,366		1,336	PulteGroup Inc
	5.75%, 08/15/2022			1,349		1,383	4.25%, 03/01/2021		250		263
	Envision Healthcare Corp						5.00%, 01/15/2027		292		290
	5.13%, 07/01/2022^(f)			414		414	5.50%, 03/01/2026		429		446
	Fresenius Medical Care US Finance II Inc						Taylor Morrison Communities Inc / Monarch
	4.13%, 10/15/2020^(f)			538		559	Communities Inc
	4.75%, 10/15/2024^(f)			1,270		1,324	5.63%, 03/01/2024^(f)		366		380
							5.88%, 04/15/2023^(f)		442		466


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
Home Builders (continued)					Lodging (continued)
Toll Brothers Finance Corp					Boyd Gaming Corp (continued)
4.00%, 12/31/2018	$	700	$	723	6.88%, 05/15/2023		$	411	$	440
4.38%, 04/15/2023		375		381	Downstream Development Authority of the
4.88%, 11/15/2025		584		596	Quapaw Tribe of Oklahoma
5.63%, 01/15/2024		315		335	10.50%, 07/01/2019 ^(f)			400		404
		$		12,703	Golden Nugget Inc
Home Furnishings - 0.09%					8.50%, 12/01/2021^(f)			390		410
Tempur Sealy International Inc					Hilton Domestic Operating Co Inc
5.50%, 06/15/2026		440		453	4.25%, 09/01/2024^(f)			510		511
5.63%, 10/15/2023		405		419	Hilton Worldwide Finance LLC / Hilton
		$		872	Worldwide Finance Corp
Housewares - 0.09%					5.63%, 10/15/2021			805		829
Radio Systems Corp					MGM Resorts International
8.38%, 11/01/2019^(f)		589		615	4.63%, 09/01/2026			529		509
Scotts Miracle-Gro Co/The					6.00%, 03/15/2023			685		742
6.00%, 10/15/2023^(f)		267		283	7.75%, 03/15/2022			1,640		1,898
		$		898	8.63%, 02/01/2019			850		954
Insurance - 0.22%					Seminole Hard Rock Entertainment Inc /
CNO Financial Group Inc					Seminole Hard Rock International LLC
					5.88%, 05/15/2021^(f)			775		768
5.25%, 05/30/2025		642		648
Fidelity & Guaranty Life Holdings Inc					Station Casinos LLC
6.38%, 04/01/2021^(b),(f)		425		424	7.50%, 03/01/2021			810		852
Liberty Mutual Group Inc					Wynn Las Vegas LLC / Wynn Las Vegas
7.80%, 03/07/2087^(f)		626		736	Capital Corp
					5.50%, 03/01/2025^(f)			975		977
Radian Group Inc
7.00%, 03/15/2021		280		314				$		10,198
		$		2,122	Machinery - Construction & Mining - 0.33%
Internet - 0.46%					BlueLine Rental Finance Corp
					7.00%, 02/01/2019^(f)			730		637
Match Group Inc
6.38%, 06/01/2024		445		481	Cortes NP Acquisition Corp
					9.25%, 10/15/2024^(f)			870		909
Netflix Inc
4.38%, 11/15/2026^(f)		1,135		1,117	Oshkosh Corp
5.50%, 02/15/2022		1,250		1,353	5.38%, 03/01/2022			75		79
5.75%, 03/01/2024		125		136	Terex Corp
5.88%, 02/15/2025		425		471	6.00%, 05/15/2021			530		539
Zayo Group LLC / Zayo Capital Inc					6.50%, 04/01/2020			970		989
6.00%, 04/01/2023		695		731				$		3,153
6.38%, 05/15/2025		160		168	Machinery - Diversified - 0.50%
		$		4,457	ATS Automation Tooling Systems Inc
					6.50%, 06/15/2023^(f)			526		544
Iron & Steel - 1.27%
AK Steel Corp					Briggs & Stratton Corp
7.50%, 07/15/2023		625		673	6.88%, 12/15/2020			475		526
ArcelorMittal					Case New Holland Industrial Inc
6.13%, 06/01/2025		527		577	7.88%, 12/01/2017			1,193		1,263
7.25%, 02/25/2022^(e)		2,443		2,773	CNH Industrial Capital LLC
8.00%, 10/15/2039^(e)		5,000		5,375	4.88%, 04/01/2021			585		607
Commercial Metals Co					CNH Industrial NV
4.88%, 05/15/2023		701		694	4.50%, 08/15/2023			680		683
Signode Industrial Group Lux SA/Signode					Manitowoc Foodservice Inc
Industrial Group US Inc					9.50%, 02/15/2024			645		741
6.38%, 05/01/2022^(f)		600		606	Zebra Technologies Corp
Steel Dynamics Inc					7.25%, 10/15/2022			470		507
5.13%, 10/01/2021		300		313				$		4,871
5.25%, 04/15/2023		200		207	Media- 10.25	%
5.50%, 10/01/2024		430		454	Altice Financing SA
					6.63%, 02/15/2023^(f)			665		685
6.38%, 08/15/2022		320		333
					7.50%, 05/15/2026^(f)			975		1,004
United States Steel Corp
8.38%, 07/01/2021^(f)		209		222	Altice Luxembourg SA
					7.63%, 02/15/2025^(f)			1,394		1,450
		$		12,227
					7.75%, 05/15/2022^(f)			2,724		2,845
Leisure Products & Services - 0.23%
NCL Corp Ltd					Altice US Finance I Corp
4.63%, 11/15/2020^(f)		570		577	5.38%, 07/15/2023^(f)			900		921
5.25%, 11/15/2019^(f)		440		447	5.50%, 05/15/2026^(f)			2,103		2,145
Royal Caribbean Cruises Ltd					AMC Networks Inc
5.25%, 11/15/2022		700		766	4.75%, 12/15/2022			250		255
Sabre GLBL Inc					5.00%, 04/01/2024			785		795
5.25%, 11/15/2023^(f)		86		88	Cablevision Systems Corp
5.38%, 04/15/2023^(f)		289		296	8.00%, 04/15/2020			1,210		1,283
		$		2,174	8.63%, 09/15/2017			97		101
					CCO Holdings LLC / CCO Holdings Capital
Lodging - 1.06%
					Corp
Boyd Gaming Corp					5.13%, 05/01/2023^(f)			1,480		1,528
6.38%, 04/01/2026^(f)		845		904


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Media (continued)					Media (continued)
CCO Holdings LLC / CCO Holdings Capital					Sirius XM Radio Inc (continued)
Corp (continued)					5.38%, 07/15/2026^(f)	$	2,902	$	2,948
5.25%, 03/15/2021	$	655	$	681	5.75%, 08/01/2021^(f)		150		156
5.25%, 09/30/2022		845		880	6.00%, 07/15/2024^(f)		625		664
5.38%, 05/01/2025^(f)		710		729	TEGNA Inc
5.50%, 05/01/2026^(f)		825		845	5.13%, 10/15/2019		1,570		1,615
5.75%, 09/01/2023		56		59	5.13%, 07/15/2020		930		967
5.75%, 02/15/2026^(f)		2,002		2,086	5.50%, 09/15/2024^(f)		665		682
5.88%, 04/01/2024^(f)		3,057		3,233	6.38%, 10/15/2023		615		650
5.88%, 05/01/2027^(f)		2,910		3,048	7.13%, 09/01/2018		382		382
6.63%, 01/31/2022		595		620	Unitymedia GmbH
Cequel Communications Holdings I LLC /					6.13%, 01/15/2025^(f)		400		417
Cequel Capital Corp					Unitymedia Hessen GmbH & Co KG /
5.13%, 12/15/2021^(f)		1,125		1,108	Unitymedia NRW GmbH
6.38%, 09/15/2020^(f)		1,502		1,547	5.00%, 01/15/2025^(f)		300		304
7.75%, 07/15/2025^(f)		240		257	5.50%, 01/15/2023^(f)		600		622
Clear Channel Worldwide Holdings Inc					Univision Communications Inc
6.50%, 11/15/2022		363		370	5.13%, 05/15/2023^(f)		2,680		2,720
6.50%, 11/15/2022		777		781	5.13%, 02/15/2025^(f)		200		200
7.63%, 03/15/2020		150		142	6.75%, 09/15/2022^(f)		1,092		1,151
7.63%, 03/15/2020		2,901		2,807	8.50%, 05/15/2021^(f)		265		273
CSC Holdings LLC					UPCB Finance IV Ltd
5.50%, 04/15/2027^(f)		2,641		2,679	5.38%, 01/15/2025^(f)		1,045		1,060
6.75%, 11/15/2021		435		458	Videotron Ltd
7.63%, 07/15/2018		805		863	5.38%, 06/15/2024^(f)		767		802
8.63%, 02/15/2019		388		431	Virgin Media Finance PLC
10.88%, 10/15/2025 ^(f)		2,580		2,967	5.75%, 01/15/2025^(f)		226		224
DISH DBS Corp					6.38%, 04/15/2023^(f)		820		836
5.88%, 07/15/2022		145		150	Virgin Media Secured Finance PLC
5.88%, 11/15/2024		2,325		2,341	5.38%, 04/15/2021^(f)		1,044		1,078
6.75%, 06/01/2021		5,045		5,420	5.50%, 08/15/2026^(f)		1,960		1,977
7.75%, 07/01/2026		987		1,084	WideOpenWest Finance LLC /
7.88%, 09/01/2019		110		123	WideOpenWest Capital Corp
Gray Television Inc					10.25%, 07/15/2019 ^(b)		940		987
5.13%, 10/15/2024^(f)		1,320		1,280	Ziggo Secured Finance BV
5.88%, 07/15/2026^(f)		580		577	5.50%, 01/15/2027^(f)		2,980		2,942
iHeartCommunications Inc							$		98,827
6.88%, 06/15/2018		503		390	Metal Fabrication & Hardware - 0.32%
7.25%, 10/15/2027		690		414	Novelis Corp
9.00%, 12/15/2019		1,077		818	5.88%, 09/30/2026^(f)		1,790		1,813
11.25%, 03/01/2021		3,224		2,442	6.25%, 08/15/2024^(f)		1,205		1,253
Liberty Interactive LLC							$		3,066
8.50%, 07/15/2029		695		771	Mining - 1.97%
LIN Television Corp					Alcoa Nederland Holding BV
5.88%, 11/15/2022		169		177	6.75%, 09/30/2024^(f)		443		459
Nexstar Broadcasting Inc					Aleris International Inc
6.13%, 02/15/2022^(f)		445		456	9.50%, 04/01/2021^(f)		415		446
Nexstar Escrow Corp					Anglo American Capital PLC
5.63%, 08/01/2024^(f)		435		432	4.13%, 04/15/2021^(f)		675		682
Nielsen Finance LLC / Nielsen Finance Co					4.13%, 09/27/2022^(f)		200		198
4.50%, 10/01/2020		1,450		1,479	4.45%, 09/27/2020^(f)		692		706
5.00%, 04/15/2022^(f)		3,872		3,950	4.88%, 05/14/2025^(f)		1,000		1,018
Quebecor Media Inc					Coeur Mining Inc
5.75%, 01/15/2023		180		188	7.88%, 02/01/2021		618		633
Quebecor World PLC					First Quantum Minerals Ltd
0.00%, 01/15/2025^(a),(b),(c)		480		—	7.00%, 02/15/2021^(f)		2,125		2,017
0.00%, 11/15/2025^(a),(b),(c)		1,075		—
					Freeport-McMoRan Inc
0.00%, 08/01/2027^(a),(b),(c)		830		—	3.10%, 03/15/2020		505		486
RCN Telecom Services LLC / RCN Capital					3.55%, 03/01/2022		315		290
Corp					3.88%, 03/15/2023		2,105		1,900
8.50%, 08/15/2020^(f)		425		453	4.00%, 11/14/2021		1,039		981
SFR Group SA					4.55%, 11/14/2024		280		257
6.00%, 05/15/2022^(f)		4,022		4,124
					5.40%, 11/14/2034		1,718		1,479
6.25%, 05/15/2024^(f)		1,282		1,281	5.45%, 03/15/2043		1,322		1,097
7.38%, 05/01/2026^(f)		3,606		3,642
					Hecla Mining Co
Sinclair Television Group Inc					6.88%, 05/01/2021		673		686
5.13%, 02/15/2027^(f)		320		306	HudBay Minerals Inc
5.63%, 08/01/2024^(f)		768		778
					9.50%, 10/01/2020		273		280
6.13%, 10/01/2022		530		560	Kaiser Aluminum Corp
Sirius XM Radio Inc					5.88%, 05/15/2024		234		247
4.25%, 05/15/2020^(f)		305		312
					Lundin Mining Corp
4.63%, 05/15/2023^(f)		930		936	7.50%, 11/01/2020^(f)		490		521
5.38%, 04/15/2025^(f)		670		683	7.88%, 11/01/2022^(f)		350		378


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Mining (continued)					Oil & Gas (continued)
New Gold Inc					Hilcorp Energy I LP / Hilcorp Finance Co
6.25%, 11/15/2022^(f)	$	224	$	226	5.00%, 12/01/2024^(f)	$	561	$	547
7.00%, 04/15/2020^(f)		435		448	5.75%, 10/01/2025^(f)		551		552
Teck Resources Ltd					7.63%, 04/15/2021^(f)		478		490
3.00%, 03/01/2019		290		286	MEG Energy Corp
4.75%, 01/15/2022		922		917	6.38%, 01/30/2023^(f)		106		87
5.40%, 02/01/2043		315		284	6.50%, 03/15/2021^(f)		577		498
6.00%, 08/15/2040		585		565	7.00%, 03/31/2024^(f)		360		295
6.13%, 10/01/2035		295		294	Newfield Exploration Co
6.25%, 07/15/2041		830		822	5.38%, 01/01/2026		1,485		1,526
8.00%, 06/01/2021^(f)		80		87	5.63%, 07/01/2024		776		807
8.50%, 06/01/2024^(f)		303		351	5.75%, 01/30/2022		154		161
		$		19,041	Oasis Petroleum Inc
Miscellaneous Manufacturers - 0.08%					6.50%, 11/01/2021		187		186
Bombardier Inc					6.88%, 03/15/2022		1,132		1,121
4.75%, 04/15/2019^(f)		428		426	Parker Drilling Co
5.50%, 09/15/2018^(f)		322		332	7.50%, 08/01/2020		259		213
		$		758	PBF Holding Co LLC / PBF Finance Corp
					7.00%, 11/15/2023^(f)		367		339
Office & Business Equipment - 0.09%
CDW LLC / CDW Finance Corp					Precision Drilling Corp
5.00%, 09/01/2023		603		619	5.25%, 11/15/2024		1,533		1,351
5.50%, 12/01/2024		240		252	6.50%, 12/15/2021		1,025		990
		$		871	6.63%, 11/15/2020		515		501
Oil & Gas - 6.14%					QEP Resources Inc
Antero Resources Corp					5.25%, 05/01/2023		521		512
5.13%, 12/01/2022		3,013		3,036	5.38%, 10/01/2022		550		544
5.38%, 11/01/2021		616		625	6.88%, 03/01/2021		840		884
6.00%, 12/01/2020		403		415	Range Resources Corp
California Resources Corp					4.88%, 05/15/2025		707		676
					5.00%, 08/15/2022^(f)		1,740		1,696
5.50%, 09/15/2021		11		6
					5.00%, 03/15/2023^(f)		2,838		2,746
6.00%, 11/15/2024		6		3
8.00%, 12/15/2022^(f)		706		477	Rice Energy Inc
Callon Petroleum Co					7.25%, 05/01/2023		405		429
6.13%, 10/01/2024^(f)		241		248	Sanchez Energy Corp
Cenovus Energy Inc					6.13%, 01/15/2023		495		423
4.45%, 09/15/2042		147		129	Shelf Drilling Holdings Ltd
					8.63%, 11/01/2018^(f)		250		200
6.75%, 11/15/2039		255		285
Chesapeake Energy Corp					SM Energy Co
4.88%, 04/15/2022		665		565	5.00%, 01/15/2024		1,400		1,302
5.38%, 06/15/2021		1,650		1,435	5.63%, 06/01/2025		409		390
5.75%, 03/15/2023		917		793	6.13%, 11/15/2022		395		397
6.13%, 02/15/2021		1,743		1,595	6.50%, 11/15/2021		839		852
8.00%, 12/15/2022^(f)		755		766	6.50%, 01/01/2023		640		637
Citgo Holding Inc					Stone Energy Corp
10.75%, 02/15/2020 ^(f)		482		492	7.50%, 11/15/2022		455		276
CITGO Petroleum Corp					Sunoco LP / Sunoco Finance Corp
6.25%, 08/15/2022^(f)		537		549	6.25%, 04/15/2021		633		649
Concho Resources Inc					6.38%, 04/01/2023		545		557
5.50%, 04/01/2023		810		829	Tesoro Corp
Continental Resources Inc/OK					5.13%, 04/01/2024		328		338
3.80%, 06/01/2024		971		894	Transocean Inc
					5.55%, 10/15/2022^(e)		205		175
4.50%, 04/15/2023		922		879
4.90%, 06/01/2044		395		336	6.80%, 03/15/2038		547		360
					9.00%, 07/15/2023^(f)		1,610		1,573
5.00%, 09/15/2022		1,169		1,146
7.13%, 04/01/2021		98		102	Ultra Petroleum Corp
					0.00%, 12/15/2018^(a),(f)		263		226
Encana Corp
					0.00%, 10/01/2024^(a),(f)		646		549
3.90%, 11/15/2021		37		37
6.50%, 08/15/2034		1,520		1,640	Unit Corp
					6.63%, 05/15/2021^(b)		1,193		1,098
6.50%, 02/01/2038		605		647
6.63%, 08/15/2037		945		1,027	W&T Offshore Inc
Ensco PLC					8.50%, 06/15/2019		424		174
4.50%, 10/01/2024		91		73	Western Refining Logistics LP / WNRL
4.70%, 03/15/2021		182		168	Finance Corp
EP Energy LLC / Everest Acquisition Finance					7.50%, 02/15/2023		225		235
Inc					Whiting Petroleum Corp
6.38%, 06/15/2023		3,056		2,078	5.00%, 03/15/2019		2,023		1,921
7.75%, 09/01/2022		1,047		712	5.75%, 03/15/2021		1,121		1,040
9.38%, 05/01/2020		3,846		3,020	6.25%, 04/01/2023		1,642		1,514
Extraction Oil & Gas Holdings LLC /					WPX Energy Inc
Extraction Finance Corp					5.25%, 09/15/2024		343		326
7.88%, 07/15/2021^(f)		715		756	6.00%, 01/15/2022		1,046		1,043
							$		59,169


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Oil & Gas Services - 0.25%					Pharmaceuticals (continued)
Archrock Partners LP / Archrock Partners					Valeant Pharmaceuticals
Finance Corp					International (continued)
6.00%, 10/01/2022	$	370	$	349	7.00%, 10/01/2020^(f)	$	495	$	443
Sea Trucks Group Ltd					7.25%, 07/15/2022^(f)		330		287
0.00%, 03/26/2018^(a),(f)		683		218	Valeant Pharmaceuticals International Inc
Trinidad Drilling Ltd					5.38%, 03/15/2020^(f)		1,070		926
7.88%, 01/15/2019^(f)		435		426	5.50%, 03/01/2023^(f)		5,810		4,561
Weatherford International LLC					5.63%, 12/01/2021^(f)		359		294
6.80%, 06/15/2037		58		46	5.88%, 05/15/2023^(f)		5,999		4,724
Weatherford International Ltd					6.13%, 04/15/2025^(f)		2,070		1,635
4.50%, 04/15/2022		204		184	7.50%, 07/15/2021^(f)		473		421
5.95%, 04/15/2042		73		55			$		20,632
6.50%, 08/01/2036		426		337	Pipelines - 5.81%
6.75%, 09/15/2040		90		71	Antero Midstream Partners LP / Antero
7.00%, 03/15/2038		601		496	Midstream Finance Corp
7.75%, 06/15/2021		122		123	5.38%, 09/15/2024^(f)		1,570		1,582
8.25%, 06/15/2023		120		124	Blue Racer Midstream LLC / Blue Racer
		$		2,429	Finance Corp
Packaging & Containers - 1.64%					6.13%, 11/15/2022^(f)		230		225
Ardagh Packaging Finance PLC / Ardagh					Boardwalk Pipelines LP
Holdings USA Inc					4.95%, 12/15/2024		400		416
7.00%, 11/15/2020^(f)		137		141	5.95%, 06/01/2026		256		284
Ball Corp					Cheniere Corpus Christi Holdings LLC
4.38%, 12/15/2020		920		980	7.00%, 06/30/2024^(f)		480		509
5.00%, 03/15/2022		1,945		2,091	Crestwood Midstream Partners LP /
5.25%, 07/01/2025		488		519	Crestwood Midstream Finance Corp
Berry Plastics Corp					6.00%, 12/15/2020		920		936
5.13%, 07/15/2023		1,650		1,679	6.13%, 03/01/2022		750		767
6.00%, 10/15/2022		120		127	6.25%, 04/01/2023		1,580		1,600
BWAY Holding Co					DCP Midstream LLC
9.13%, 08/15/2021^(f)		1,115		1,165	4.75%, 09/30/2021^(f)		375		383
Constar International					5.35%, 03/15/2020^(f)		365		376
0.00%, PIK 0.00%, 12/31/2017^{(a),(b),(c),(e),(h)}		516		54	5.85%, 05/21/2043^(e),(f)		290		246
Crown Americas LLC / Crown Americas					6.45%, 11/03/2036^(f)		220		229
Capital Corp V					6.75%, 09/15/2037^(f)		195		204
4.25%, 09/30/2026^(f)		395		388	8.13%, 08/16/2030		330		375
Graphic Packaging International Inc					DCP Midstream Operating LP
4.75%, 04/15/2021		150		159	2.50%, 12/01/2017		615		610
4.88%, 11/15/2022		300		314	3.88%, 03/15/2023		340		331
Owens-Brockway Glass Container Inc					4.95%, 04/01/2022		154		158
5.38%, 01/15/2025^(f)		400		412	5.60%, 04/01/2044		820		769
5.88%, 08/15/2023^(f)		373		398	Energy Transfer Equity LP
6.38%, 08/15/2025^(f)		83		91	5.50%, 06/01/2027		650		634
Reynolds Group Issuer Inc / Reynolds Group					5.88%, 01/15/2024		3,085		3,136
Issuer LLC / Reynolds Group Issuer					7.50%, 10/15/2020		1,240		1,352
(Luxembourg) S.A.					EnLink Midstream Partners LP
5.13%, 07/15/2023^(f)		2,315		2,377	4.15%, 06/01/2025		310		302
5.75%, 10/15/2020		1,145		1,175	4.85%, 07/15/2026		164		167
6.88%, 02/15/2021^(e)		980		1,014	Genesis Energy LP / Genesis Energy Finance
8.25%, 02/15/2021		760		794	Corp
9.88%, 08/15/2019		243		249	5.63%, 06/15/2024		660		653
Sealed Air Corp					5.75%, 02/15/2021		30		30
5.13%, 12/01/2024^(f)		350		370	6.75%, 08/01/2022		220		226
5.50%, 09/15/2025^(f)		1,070		1,141	Holly Energy Partners LP / Holly Energy
6.50%, 12/01/2020^(f)		150		171	Finance Corp
		$		15,809	6.00%, 08/01/2024^(f)		683		710
Pharmaceuticals - 2.14%					Martin Midstream Partners LP / Martin
Endo Finance LLC					Midstream Finance Corp
5.75%, 01/15/2022^(f)		166		149	7.25%, 02/15/2021		240		230
Endo Finance LLC / Endo Finco Inc					MPLX LP
5.38%, 01/15/2023^(e),(f)		3,210		2,729	4.50%, 07/15/2023		1,124		1,157
7.25%, 01/15/2022^(e),(f)		161		153	4.88%, 12/01/2024		1,925		2,013
Endo Ltd / Endo Finance LLC / Endo Finco					NGPL PipeCo LLC
Inc					7.12%, 12/15/2017^(f)		600		627
6.00%, 07/15/2023^(f)		2,115		1,840	9.63%, 06/01/2019^(f)		200		210
6.50%, 02/01/2025^(e),(f)		1,160		977	NuStar Logistics LP
Grifols Worldwide Operations Ltd					4.80%, 09/01/2020		259		262
5.25%, 04/01/2022		200		209	6.75%, 02/01/2021		93		101
NBTY Inc					ONEOK Inc
7.63%, 05/15/2021^(f)		860		841	4.25%, 02/01/2022		33		33
Valeant Pharmaceuticals International					6.00%, 06/15/2035		160		159
6.38%, 10/15/2020^(f)		175		151	7.50%, 09/01/2023		81		93
6.75%, 08/15/2021^(f)		338		292


Schedule of Investments
High Yield Fund I
October 31, 2016



				Principal					Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
	Pipelines (continued)						REITS (continued)
	PBF Logistics LP / PBF Logistics Finance						Iron Mountain Inc (continued)
	Corp						6.00%, 10/01/2020^(f)	$	608	$	644
	6.88%, 05/15/2023		$	232	$	225	6.00%, 08/15/2023		1,305		1,386
	Regency Energy Partners LP / Regency						Iron Mountain US Holdings Inc
	Energy Finance Corp						5.38%, 06/01/2026^(f)		430		434
	5.50%, 04/15/2023			1,270		1,308	MGM Growth Properties Operating
	Rockies Express Pipeline LLC						Partnership LP / MGP Finance Co-Issuer Inc
	5.63%, 04/15/2020^(f)			1,615		1,694	5.63%, 05/01/2024^(f)		685		729
	6.88%, 04/15/2040^(f)			1,090		1,136	MPT Operating Partnership LP / MPT Finance
	7.50%, 07/15/2038^(f)			645		693	Corp
	Rose Rock Midstream LP / Rose Rock						5.25%, 08/01/2026		1,030		1,051
	Finance Corp						5.50%, 05/01/2024		2,085		2,147
	5.63%, 07/15/2022			247		236	6.38%, 03/01/2024		835		900
	5.63%, 11/15/2023			1,445		1,388	Omega Healthcare Investors Inc
	Sabine Pass Liquefaction LLC						5.88%, 03/15/2024		2,365		2,458
	5.00%, 03/15/2027^(f)			675		687	Sabra Health Care LP / Sabra Capital Corp
	5.63%, 02/01/2021^(e)			885		931	5.50%, 02/01/2021		1,300		1,355
	5.63%, 04/15/2023			1,450		1,540			$		18,707
	5.63%, 03/01/2025			5,262		5,568	Retail - 2.94%
	5.75%, 05/15/2024			2,640		2,792	1011778 BC ULC / New Red Finance Inc
	5.88%, 06/30/2026^(f)			1,485		1,600	4.63%, 01/15/2022^(f)		770		795
	6.25%, 03/15/2022			730		799	6.00%, 04/01/2022^(f)		890		930
	Summit Midstream Holdings LLC / Summit						AmeriGas Finance LLC / AmeriGas Finance
	Midstream Finance Corp						Corp
	5.50%, 08/15/2022			484		469	7.00%, 05/20/2022		500		526
	Tallgrass Energy Partners LP / Tallgrass						Caleres Inc
	Energy Finance Corp						6.25%, 08/15/2023		310		326
	5.50%, 09/15/2024^(f)			460		458	Claire's Stores Inc
	Targa Resources Partners LP / Targa						6.13%, 03/15/2020^(f)		728		357
	Resources Partners Finance Corp						9.00%, 03/15/2019^(f)		1,527		764
	4.25%, 11/15/2023			945		888	Dollar Tree Inc
	5.13%, 02/01/2025^(f)			685		683	5.75%, 03/01/2023		1,755		1,869
	5.25%, 05/01/2023			770		764	Ferrellgas LP / Ferrellgas Finance Corp
	5.38%, 02/01/2027^(f)			800		800	6.50%, 05/01/2021		415		391
	6.38%, 08/01/2022			600		618	6.75%, 01/15/2022		1,480		1,387
	6.75%, 03/15/2024			670		717	6.75%, 06/15/2023^(e)		786		733
	Tesoro Logistics LP / Tesoro Logistics						Group 1 Automotive Inc
	Finance Corp						5.25%, 12/15/2023^(f)		280		279
	6.13%, 10/15/2021			450		471	Guitar Center Inc
	6.25%, 10/15/2022			1,118		1,185	6.50%, 04/15/2019^(f)		611		548
	6.38%, 05/01/2024			615		662	JC Penney Corp Inc
	Western Gas Partners LP						5.88%, 07/01/2023^(f)		110		113
	4.65%, 07/01/2026			400		419	8.13%, 10/01/2019		241		262
	5.38%, 06/01/2021			270		294	Jo-Ann Stores LLC
	Williams Cos Inc/The						8.13%, 03/15/2019^(f)		57		57
	3.70%, 01/15/2023			475		460	KFC Holding Co/Pizza Hut Holdings
	5.75%, 06/24/2044			3,225		3,296	LLC/Taco Bell of America LLC
	7.50%, 01/15/2031			420		482	5.00%, 06/01/2024^(f)		445		463
	7.75%, 06/15/2031			245		282	5.25%, 06/01/2026^(f)		1,365		1,423
	Williams Partners LP / ACMP Finance Corp						L Brands Inc
	6.13%, 07/15/2022			410		426	5.63%, 10/15/2023		1,985		2,184
				$		56,066	6.75%, 07/01/2036		450		478
	Private Equity - 0.25%						6.88%, 11/01/2035		361		383
	Icahn Enterprises LP / Icahn Enterprises						Landry's Inc
	Finance Corp						6.75%, 10/15/2024^(f)		294		300
	3.50%, 03/15/2017			1,000		1,000	Neiman Marcus Group LTD LLC
	4.88%, 03/15/2019			740		737	8.00%, 10/15/2021^(f)		1,045		862
	5.88%, 02/01/2022			669		636	New Albertsons Inc
				$		2,373	6.63%, 06/01/2028		325		293
	REITS- 1.94	%					7.75%, 06/15/2026		310		308
	Communications Sales & Leasing Inc / CSL						8.00%, 05/01/2031		422		410
	Capital LLC						8.70%, 05/01/2030		95		96
	6.00%, 04/15/2023^(f)			427		443	Party City Holdings Inc
	8.25%, 10/15/2023			1,110		1,171	6.13%, 08/15/2023^(f)		50		53
	Equinix Inc						Penske Automotive Group Inc
	5.38%, 01/01/2022			404		428	5.38%, 12/01/2024		250		251
	5.38%, 04/01/2023			200		209	5.50%, 05/15/2026		511		507
	5.75%, 01/01/2025			515		545	PetSmart Inc
	5.88%, 01/15/2026			1,033		1,105	7.13%, 03/15/2023^(f)		2,560		2,678
	ESH Hospitality Inc						QVC Inc
	5.25%, 05/01/2025^(f)			1,954		1,934	5.13%, 07/02/2022		730		765
	Iron Mountain Inc						5.45%, 08/15/2034		1,895		1,752
	5.75%, 08/15/2024			1,725		1,768


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal					Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)		Amount (000's) Value (000's)
Retail (continued)					Software (continued)
Rite Aid Corp					Open Text Corp (continued)
6.38%, 04/01/2023^(f)	$	1,877	$	1,980	5.88%, 06/01/2026^(f)	$	1,564	$	1,666
6.75%, 06/15/2021		750		788	Quintiles IMS Inc
9.25%, 03/15/2020		680		716	4.88%, 05/15/2023^(f)		485		500
Sally Holdings LLC / Sally Capital Inc					5.00%, 10/15/2026^(f)		1,505		1,555
5.50%, 11/01/2023		50		53	Solera LLC / Solera Finance Inc
5.63%, 12/01/2025		550		587	10.50%, 03/01/2024 ^(f)		420		469
Serta Simmons Bedding LLC					SS&C Technologies Holdings Inc
8.13%, 10/01/2020^(f)		800		831	5.88%, 07/15/2023		300		314
Suburban Propane Partners LP/Suburban							$		24,430
Energy Finance Corp					Telecommunications - 9.21%
5.50%, 06/01/2024		42		43	Alcatel-Lucent USA Inc
7.38%, 08/01/2021		617		642	6.45%, 03/15/2029		842		928
Tops Holding LLC / Tops Markets II Corp					Avaya Inc
8.00%, 06/15/2022^(f)		241		212	7.00%, 04/01/2019^(f)		1,344		1,092
		$		28,395	10.50%, 03/01/2021 ^(f)		471		155
Semiconductors - 1.25%					CenturyLink Inc
Advanced Micro Devices Inc					6.45%, 06/15/2021		1,570		1,676
7.00%, 07/01/2024		529		524	6.75%, 12/01/2023		610		627
Amkor Technology Inc					7.60%, 09/15/2039		295		263
6.38%, 10/01/2022		1,375		1,418	Cincinnati Bell Inc
Micron Technology Inc					7.00%, 07/15/2024^(f)		424		444
5.25%, 08/01/2023^(f)		724		710	Citizens Communications Co
5.25%, 01/15/2024^(f)		472		460	7.13%, 03/15/2019		135		144
5.50%, 02/01/2025		947		928	CommScope Inc
5.63%, 01/15/2026^(f)		770		747	5.50%, 06/15/2024^(f)		762		798
7.50%, 09/15/2023^(f)		627		692	CommScope Technologies Finance LLC
Microsemi Corp					6.00%, 06/15/2025^(f)		1,310		1,375
9.13%, 04/15/2023^(f)		396		456	Consolidated Communications Inc
NXP BV / NXP Funding LLC					6.50%, 10/01/2022		470		463
4.13%, 06/15/2020^(f)		392		414	Embarq Corp
4.13%, 06/01/2021^(f)		1,435		1,531	8.00%, 06/01/2036		7,799		7,916
4.63%, 06/15/2022^(f)		812		885	Frontier Communications Corp
5.75%, 02/15/2021^(f)		297		309	6.25%, 09/15/2021		950		902
5.75%, 03/15/2023^(f)		232		247	7.13%, 01/15/2023		490		441
Qorvo Inc					7.63%, 04/15/2024		725		645
6.75%, 12/01/2023		494		541	8.50%, 04/15/2020		1,586		1,693
Sensata Technologies BV					8.75%, 04/15/2022		404		399
5.00%, 10/01/2025^(f)		496		508	8.88%, 09/15/2020		167		177
5.63%, 11/01/2024^(f)		696		738	9.00%, 08/15/2031		3,148		2,739
Sensata Technologies UK Financing Co plc					9.25%, 07/01/2021		1,022		1,078
6.25%, 02/15/2026^(f)		853		924	11.00%, 09/15/2025		3,202		3,278
		$		12,032	10.50%, 09/15/2022		843		877
Software - 2.53%					Goodman Networks Inc
Camelot Finance SA					12.13%, 07/01/2018 ^(b)		735		314
7.88%, 10/15/2024^(f)		905		925	Hughes Satellite Systems Corp
Change Healthcare Holdings Inc					5.25%, 08/01/2026^(f)		960		946
6.00%, 02/15/2021^(f)		845		887	6.50%, 06/15/2019		663		723
First Data Corp					6.63%, 08/01/2026^(f)		315		312
5.00%, 01/15/2024^(f)		1,735		1,761	Intelsat Jackson Holdings SA
5.38%, 08/15/2023^(f)		330		342	5.50%, 08/01/2023		744		493
5.75%, 01/15/2024^(f)		1,576		1,600	7.25%, 04/01/2019		371		299
6.75%, 11/01/2020^(f)		394		408	7.25%, 10/15/2020		600		455
7.00%, 12/01/2023^(f)		3,094		3,241	8.00%, 02/15/2024^(f)		710		714
Inception Merger Sub Inc / Rackspace Hosting					Intelsat Luxembourg SA
Inc					7.75%, 06/01/2021		2,927		951
8.63%, 11/15/2024^(f),(g)		1,300		1,300	8.13%, 06/01/2023		1,085		358
Infor Software Parent LLC / Infor Software					Level 3 Financing Inc
Parent Inc					5.13%, 05/01/2023		1,282		1,294
7.13%, PIK 7.88%, 05/01/2021^(f),(h)		1,989		2,014	5.25%, 03/15/2026^(f)		590		599
Infor US Inc					5.38%, 08/15/2022		1,480		1,520
5.75%, 08/15/2020^(f)		116		121	5.38%, 01/15/2024		1,220		1,244
6.50%, 05/15/2022		687		710	5.38%, 05/01/2025		1,353		1,374
Informatica LLC					Nokia OYJ
7.13%, 07/15/2023^(f)		232		216	6.63%, 05/15/2039		216		233
MSCI Inc					Plantronics Inc
5.25%, 11/15/2024^(f)		1,355		1,423	5.50%, 05/31/2023^(f)		295		300
5.75%, 08/15/2025^(f)		1,275		1,356	Qwest Capital Funding Inc
Nuance Communications Inc					6.88%, 07/15/2028		159		150
5.38%, 08/15/2020^(f)		1,195		1,228	7.75%, 02/15/2031		780		745
6.00%, 07/01/2024^(f)		1,850		1,943	Qwest Corp
Open Text Corp					6.88%, 09/15/2033		1,780		1,762
5.63%, 01/15/2023^(f)		435		451	7.25%, 09/15/2025		210		229


Schedule of Investments
High Yield Fund I
October 31, 2016



		Principal			SENIOR FLOATING RATE INTERESTS -			Principal
BONDS (continued)		Amount (000's) Value (000's)			6.87	%		Amount (000's)		Value(000	's)
Telecommunications (continued)					Advertising - 0.19%
SoftBank Group Corp					Advantage Sales & Marketing Inc, Term
4.50%, 04/15/2020^(f)	$	988	$	1,015	Loan
Sprint Capital Corp					7.50%, 07/21/2022^(e)		$	1,950	$	1,839
6.88%, 11/15/2028		167		154	Vertis Inc, Term Loan EXIT
8.75%, 03/15/2032		268		272	0.00%, 12/31/2016^{(a),(b),(c),(e)}			1,359		—
Sprint Communications Inc									$	1,839
6.00%, 11/15/2022		3,898		3,633	Aerospace & Defense - 0.13%
7.00%, 03/01/2020^(f)		1,334		1,451	TransDigm Inc, Term Loan F
7.00%, 08/15/2020		1,245		1,295	0.00%, 06/09/2023^(e),(i)			1,240		1,235
8.38%, 08/15/2017		471		490
9.00%, 11/15/2018^(f)		1,271		1,398	Airlines - 0.04%
11.50%, 11/15/2021		374		438	American Airlines Inc, Term Loan B
Sprint Corp					3.25%, 06/27/2020^(e)			425		425
7.13%, 06/15/2024		6,851		6,440
7.25%, 09/15/2021		2,582		2,643	Automobile Manufacturers - 0.08%
7.63%, 02/15/2025		597		578	FCA US LLC, Term Loan B
7.88%, 09/15/2023		4,590		4,544	3.25%, 12/31/2018^(e)			339		339
Sprint Spectrum Co LLC / Sprint Spectrum Co					3.50%, 05/24/2017^(e)			427		427
II LLC / Sprint Spectrum Co III LLC									$	766
3.36%, 03/20/2023^(f)		589		590
					Biotechnology - 0.06%
Telecom Italia Capital SA					Concordia International Corp, Term Loan B
6.00%, 09/30/2034		1,400		1,393	5.25%, 10/20/2021^(e)			616		551
T-Mobile USA Inc
6.00%, 03/01/2023		2,752		2,896	Coal- 0.23	%
6.00%, 04/15/2024		718		764	Gulf Finance LLC, Term Loan
6.13%, 01/15/2022		2,085		2,199	6.25%, 08/17/2023^(e)			2,315		2,260
6.25%, 04/01/2021		675		703
6.38%, 03/01/2025		442		474	Commercial Services - 0.13%
6.50%, 01/15/2024		212		227	Pharmaceutical Product Development LLC,
6.50%, 01/15/2026		460		504	Term Loan B
6.54%, 04/28/2020		1,160		1,198	4.25%, 08/05/2022^(e)			541		540
6.63%, 11/15/2020		275		283	Syniverse Holdings Inc, Term Loan B
6.63%, 04/28/2021		1,501		1,574	4.00%, 04/23/2019^(e)			205		188
6.63%, 04/01/2023		521		554	4.00%, 04/23/2019^(e)			313		288
6.73%, 04/28/2022		1,703		1,780	4.00%, 04/23/2019^(e)			300		276
6.84%, 04/28/2023		481		514					$	1,292
West Corp					Computers - 0.09%
4.75%, 07/15/2021^(f)		417		430
					Presidio Inc, Term Loan B

5.38%, 07/15/2022(f)		730		703	5.25%, 02/02/2022^(e)			904		904
Wind Acquisition Finance SA
4.75%, 07/15/2020^(f)		2,405		2,417
					Cosmetics & Personal Care - 0.04%
7.38%, 04/23/2021^(f)		1,155		1,187
					Revlon Consumer Products Corp, Term Loan
Windstream Services LLC					B
7.50%, 06/01/2022		788		745	4.25%, 07/21/2023^(e)			77		77
7.50%, 04/01/2023		247		232	4.25%, 09/07/2023^(e)			39		38
		$		88,843	4.25%, 09/07/2023^(e)			39		39
Transportation - 0.17%					4.25%, 09/07/2023^(e)			39		39
Bluewater Holding BV					4.25%, 09/07/2023^(e)			39		39
10.00%, 12/10/2019 ^(f)		1,300		663	4.25%, 09/07/2023^(e)			39		39
Ultrapetrol Bahamas Ltd					4.25%, 09/07/2023^(e)			39		39
0.00%, 06/15/2021^(a),(b)		1,514		288	4.25%, 09/07/2023^(e)			39		39
XPO Logistics Inc									$	349
6.13%, 09/01/2023^(f)		225		231
6.50%, 06/15/2022^(f)		465		484	Electric - 0.54%
					Calpine Corp, Term Loan B5
		$		1,666	3.59%, 05/20/2022^(e)			1,339		1,341
TOTAL BONDS		$		858,242	Calpine Corp, Term Loan B6
		Principal			4.00%, 01/15/2023^(e)			690		693
CONVERTIBLE BONDS - 0.03%		Amount (000's) Value (000's)			Dynegy Inc, Term Loan B2
Electric - 0.02%					4.00%, 04/16/2020^(e)			840		840
NRG Yield Inc					Dynegy Inc, Term Loan C
3.25%, 06/01/2020^(f)		250		240	5.00%, 06/22/2023^(e)			895		897
					TEX Operations Co LLC, Term Loan B-
Retail - 0.01%					EXIT
Nebraska Book Holdings Inc					5.00%, 07/27/2023^(e)			1,126		1,136
2.00%, PIK 2.00%, 04/01/2026^{(b),(c),(f),(h)}		397		62	TEX Operations Co LLC, Term Loan C-
					EXIT
TOTAL CONVERTIBLE BONDS		$		302	5.00%, 07/26/2023^(e)			257		259
									$	5,166
					Entertainment - 0.43%
					Cowlitz Tribal Gaming Authority, Term Loan
					B
					11.50%, 10/02/2020 ^(b),(e)			1,335		1,415


Schedule of Investments
High Yield Fund I
October 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)
	Entertainment (continued)						Machinery - Construction & Mining - 0.04%
	Delta 2 Lux Sarl, Term Loan B						Cortes NP Acquisition Corp, Term Loan B
	7.75%, 07/29/2022^(e)		$	600	$	604	0.00%, 09/29/2023^(e),(i)		$	413	$	410
	Delta 2 Lux Sarl, Term Loan B3
	4.75%, 07/30/2021^(e)			575		576	Media- 0.94	%
	Eldorado Resorts Inc, Term Loan B						Charter Communications Operating LLC,
	4.25%, 07/15/2022^(e)			789		791	Term Loan I
	Graton Economic Development Authority,						3.50%, 01/24/2023^(e)			2,473		2,487
	Term Loan B						Gray Television Inc, Term Loan B
	4.75%, 08/06/2022^(e)			357		359	3.94%, 06/13/2021^(e)			135		136
	Scientific Games International Inc, Term Loan						iHeartCommunications Inc, Term Loan D-
	B1						EXT
	6.00%, 05/22/2020^(e)			440		442	7.28%, 01/23/2019^(e)			2,022		1,528
				$		4,187	Sinclair Television Group Inc, Term Loan B1
	Food- 0.35	%					3.50%, 07/30/2021^(e)			361		363
	Albertsons LLC, Term Loan B5						Tribune Media Co, Term Loan B
	4.75%, 12/21/2022^(e)			1,368		1,382	3.75%, 12/27/2020^(e)			508		510
	B&G Foods Inc, Term Loan B						Univision Communications Inc, Term Loan
	3.84%, 11/02/2022^(e)			196		198	C3
	Dole Food Co Inc, Term Loan B						4.00%, 03/01/2020^(e)			1,610		1,611
	4.50%, 12/01/2018^(e)			125		125	4.00%, 03/01/2020^(e)			371		371
	4.50%, 12/01/2018^(e)			27		27	Univision Communications Inc, Term Loan
	4.50%, 12/01/2018^(e)			42		42	C4
	4.50%, 12/01/2018^(e)			125		125	4.00%, 03/01/2020^(e)			586		587
	4.50%, 12/01/2018^(e)			83		83	Virgin Media Investment Holdings Ltd, Term
	4.55%, 12/01/2018^(e)			125		125	Loan F
	4.76%, 10/25/2018^(e)			125		125	3.50%, 06/30/2023^(e)			450		452
	6.00%, 11/01/2018^(e)			1		—	WideOpenWest Finance LLC, Term Loan
	Pinnacle Foods Finance LLC, Term Loan I						4.50%, 08/18/2023^(e),(i)			1,015		1,012
	3.28%, 01/13/2023^(e)			263		265				$		9,057
	SUPERVALU Inc, Term Loan						Mining - 0.17%
	5.50%, 03/21/2019^(e)			318		319	FMG Resources August 2006 Pty Ltd, Term
	5.50%, 03/21/2019^(e)			90		90	Loan B
	Viskase Cos Inc, Term Loan B						3.75%, 06/30/2019^(e)			1,318		1,317
	4.25%, 01/30/2021^(e)			211		198	3.75%, 06/30/2019^(e)			342		341
	4.48%, 01/30/2021^(e)			248		233				$		1,658
				$		3,337	Oil & Gas - 0.48%
	Food Service - 0.15%						Alon USA Partners LP, Term Loan B
	Aramark Services Inc, Term Loan F						9.25%, 11/13/2018^(e)			139		139
	3.34%, 02/21/2021^(e)			1,476		1,483	California Resources Corp, Term Loan
							11.37%, 12/31/2021 ^(e)			694		745
	Healthcare - Services - 0.26%						Chesapeake Energy Corp, Term Loan
	inVentiv Health Inc, Term Loan B4						8.50%, 08/17/2021^(e)			994		1,062
	8.75%, 05/15/2018^(e)			867		866	EP Energy LLC, Term Loan 1.5
	MPH Acquisition Holdings LLC, Term Loan						9.75%, 06/30/2021^(e)			1,125		1,150
	B						Fieldwood Energy LLC, Term Loan
	5.00%, 05/25/2023^(e)			1,033		1,044	8.38%, 09/30/2020^(e)			420		247
	5.00%, 05/25/2023^(e)			602		609	MEG Energy Corp, Term Loan B
				$		2,519	3.75%, 03/31/2020^(e)			471		443
	Holding Companies - Diversified - 0.01%						Sabine Oil & Gas Corp, Term Loan B
	MGOC Inc, Term Loan B						0.00%, 01/18/2018^(a),(e)			432		12
	4.00%, 07/31/2020^(e)			127		127	Shelf Drilling Midco Ltd, PIK Term Loan B
							10.00%, 10/08/2018 ^(e)			460		315
	Internet - 0.15%						Western Refining Inc, Term Loan B2
	Go Daddy Operating Co LLC, Term Loan B						5.50%, 05/26/2023^(e)			549		548
	4.25%, 05/05/2021^(e)			249		250				$		4,661
	Match Group Inc, Term Loan B1						Packaging & Containers - 0.23%
	5.50%, 10/27/2022^(e)			615		619	Berry Plastics Group Inc, Term Loan G
	Zayo Group LLC, Term Loan B						3.50%, 01/06/2021^(e)			135		135
	3.75%, 05/06/2021^(e)			557		560	Berry Plastics Group Inc, Term Loan H
				$		1,429	3.75%, 10/01/2022^(e)			79		80
	Lodging - 0.15%						3.75%, 10/01/2022^(e)			71		71
	Boyd Gaming Corp, Term Loan B2						Reynolds Group Holdings Inc, Term Loan
	3.59%, 08/16/2023^(e)			260		262	4.25%, 01/20/2023^(e)			1,950		1,954
	Hilton Worldwide Finance LLC, Term Loan									$		2,240
	B2						REITS- 0.14	%
	3.03%, 10/26/2023^(e)			341		343	ESH Hospitality Inc, Term Loan B
	Intrawest Operations Group LLC, Term Loan						3.75%, 08/17/2023^(e)			810		814
	4.50%, 12/09/2020^(e)			129		130	MGM Growth Properties Operating
	Jack Ohio Finance LLC, Term Loan B						Partnership LP, Term Loan B
	5.00%, 03/27/2019^(e)			675		674	4.00%, 04/07/2023^(e)			517		518
				$		1,409				$		1,332


Schedule of Investments
High Yield Fund I
October 31, 2016



SENIOR FLOATING RATE INTERESTS	Principal
(continued)	Amount (000's)			Value(000	's)
						(a)	Non-Income Producing Security
Retail - 0.56%
						(b)	Security is Illiquid. At the end of the period, the value of these securities
J Crew Group Inc, Term Loan B
4.00%, 02/26/2021^(e)	$	713	$	542			totaled $6,918 or 0.72% of net assets.
4.00%, 02/26/2021^(e)		283		216		(c)	Fair value of these investments is determined in good faith by the Manager
4.00%, 02/26/2021^(e)		355		270			under procedures established and periodically reviewed by the Board of
							Directors. At the end of the period, the fair value of these securities totaled
JC Penney Corp Inc, Term Loan B
5.25%, 06/09/2023^(e)		492		495			$295 or 0.03% of net assets.
						(d)	Perpetual security. Perpetual securities pay an indefinite stream of
Landry's Inc, Term Loan
4.00%, 09/21/2023^(e)		272		273			interest, but they may be called by the issuer at an earlier date.
						(e)	Variable Rate. Rate shown is in effect at October 31, 2016.
PetSmart Inc, Term Loan B
4.01%, 03/11/2022^(e)		643		645		(f)	Security exempt from registration under Rule 144A of the Securities Act of
							1933. These securities may be resold in transactions exempt from
Rite Aid Corp, Term Loan 2
4.88%, 06/11/2021^(e)		1,000		1,003			registration, normally to qualified institutional buyers. At the end of the
							period, the value of these securities totaled $349,203 or 36.21% of net
Sears Roebuck Acceptance Corp, Term Loan
							assets.
B
5.50%, 06/30/2018^(e)		1,140		1,115		(g)	Security purchased on a when-issued basis.
						(h)	Payment in kind; the issuer has the option of paying additional securities
Serta Simmons Bedding LLC, Term Loan B
4.25%, 10/01/2019^(e)		353		352			in lieu of cash.
4.25%, 10/01/2019^(e)		290		289		(i)	This Senior Floating Rate Note will settle after October 31, 2016, at which
4.25%, 10/01/2019^(e)		148		148			time the interest rate will be determined.
			$	5,348
Semiconductors - 0.33%
Avago Technologies Cayman Finance Ltd,							Portfolio Summary (unaudited)
Term Loan B3						Sector		Percent
3.53%, 02/01/2023^(e)		1,875		1,893		Communications		21.81	%
3.53%, 02/01/2023^(e)		621		627		Consumer, Non-cyclical		17.41	%
Microsemi Corp, Term Loan B						Energy		13.02	%
3.75%, 12/17/2022^(e)		273		275		Consumer, Cyclical		12.07	%
NXP BV, Term Loan B						Financial		9.09	%
3.41%, 12/07/2020^(e)		109		110		Technology		7.01	%
ON Semiconductor Corp, Term Loan B						Industrial		6.84	%
3.78%, 03/31/2023^(e)		262		263		Basic Materials		4.98	%
			$	3,168		Utilities		4.13	%
Software - 0.64%						Investment Companies		2.81	%
Evergreen Skills Lux Sarl, Term Loan						Diversified		0.01	%
3.75%, 04/08/2021^(e)		59		59		Other Assets and Liabilities		0.82	%
3.75%, 04/08/2021^(e)		356		355		TOTAL NET ASSETS		100.00	%
3.75%, 05/01/2021^(e)		36		35
First Data Corp, Term Loan B
4.27%, 06/24/2022^(e)		3,565		3,590
4.27%, 07/08/2022^(e)		574		578
Inception Merger Sub Inc / Rackspace Hosting
Inc, Term Loan B
0.00%, 10/26/2023^(e),(i)		1,045		1,050
Seahawk Holding Cayman Ltd, Term Loan
0.00%, 09/27/2022^(e),(i)		280		280
SolarWinds Holdings Inc, Term Loan B
5.50%, 02/03/2023^(e)		249		251
			$	6,198
Telecommunications - 0.26%
Avaya Inc, Term Loan B3
0.00%, 10/26/2017^(e),(i)		150		130
Avaya Inc, Term Loan B6
0.00%, 03/31/2018^(e),(i)		320		272
Cincinnati Bell Inc, Term Loan B
4.00%, 08/09/2020^(e)		82		82
4.00%, 08/09/2020^(e)		75		75
4.00%, 08/20/2020^(e)		82		83
CommScope Inc, Term Loan B
3.75%, 12/29/2022^(e)		342		343
Level 3 Financing Inc, Term Loan BI
3.93%, 01/15/2020^(e)		688		691
UPC Financing Partnership, Term Loan AN
4.08%, 07/29/2024^(e)		833		837
			$	2,513
Transportation - 0.05%
XPO Logistics Inc, Term Loan B2
4.25%, 10/30/2021^(e)		451		453

TOTAL SENIOR FLOATING RATE INTERESTS			$	66,316
Total Investments			$	956,415
Other Assets and Liabilities - 0.82%			$	7,934
TOTAL NET ASSETS - 100.00%			$	964,349


Schedule of Investments
Income Fund
October 31, 2016



	COMMON STOCKS - 0.10%	Shares Held		Value(000			's)			Principal
	Computers - 0.00%							BONDS (continued)		Amount (000's) Value (000's)
	GCB S3 Inc ^(a),(b),(c)		9,825,000	$		—		Banks (continued)
								Goldman Sachs Group Inc/The		(continued)
	Diversified Financial Services - 0.00%							5.25%, 07/27/2021	$	13,000	$	14,611
	Adelphia Recovery Trust ^(a),(b),(c)		658,740			2		ING Bank NV
								3.75%, 03/07/2017^(e)		5,000		5,042
	Oil & Gas - 0.10%							JPMorgan Chase & Co
	W&T Offshore Inc ^(a)		2,148,775			3,116		3.25%, 09/23/2022		5,000		5,198
								3.63%, 05/13/2024		15,000		15,769
	Transportation - 0.00%							3.90%, 07/15/2025		5,000		5,312
	Trailer Bridge Inc ^(a),(c)		7,120			—		7.90%, 04/29/2049^(d),(f)		7,000		7,215
								JPMorgan Chase Bank NA
	TOTAL COMMON STOCKS			$		3,118		1.26%, 06/14/2017^(d)		5,000		5,005
	INVESTMENT COMPANIES - 4.00%	Shares Held		Value(000			's)	Morgan Stanley
	Money Market Funds - 4.00%							2.65%, 01/27/2020		5,000		5,088
	Goldman Sachs Financial Square Funds -		131,840,828			131,841		3.95%, 04/23/2027		10,000		10,288
	Government Fund							4.00%, 07/23/2025		5,000		5,328
								4.88%, 11/01/2022		2,000		2,197
	TOTAL INVESTMENT COMPANIES			$		131,841		5.50%, 07/28/2021		5,000		5,676
		Principal						PNC Bank NA
	BONDS- 62.66%	Amount (000's)		Value(000			's)	2.95%, 01/30/2023		5,000		5,089
								2.95%, 02/23/2025		10,000		10,204
	Airlines - 0.29%
								PNC Financial Services Group Inc/The
	United Airlines 2013-1 Class A Pass Through							6.75%, 07/29/2049^(d),(f)		18,000		19,980
	Trust
								SunTrust Bank/Atlanta GA
	4.30%, 02/15/2027	$	8,688		$	9,426
								2.75%, 05/01/2023		15,000		15,058
								3.30%, 05/15/2026		5,000		5,039
	Apparel - 0.43%
								US Bancorp
	Under Armour Inc
								1.65%, 05/15/2017		9,000		9,020
	3.25%, 06/15/2026		14,250			14,050
								2.95%, 07/15/2022		5,000		5,184
	Automobile Floor Plan Asset							3.00%, 03/15/2022		2,000		2,098
	Backed Securities - 2.45%
								3.60%, 09/11/2024		9,500		10,075
	Ally Master Owner Trust
	1.00%, 01/15/2019^(d)		5,000			5,002		4.13%, 05/24/2021		3,000		3,302
								US Bank NA/Cincinnati OH
	BMW Floorplan Master Owner Trust
	1.03%, 07/15/2020^(d),(e)		13,500			13,524		2.80%, 01/27/2025		5,000		5,099
								Wells Fargo & Co
	Ford Credit Floorplan Master Owner Trust A							7.98%, 12/31/2049^(d),(f)		15,000		15,637
	0.93%, 02/15/2019^(d)		6,000			6,003
	1.43%, 02/15/2021^(d)		15,000			15,163				$		292,095
	Mercedes-Benz Master Owner Trust							Beverages - 1.76%
	0.91%, 04/15/2020^(d),(e)		15,000			14,985		Anheuser-Busch InBev Finance Inc
	Nissan Master Owner Trust Receivables							3.65%, 02/01/2026		7,500		7,892
	0.93%, 01/15/2020^(d)		15,000			15,015		4.70%, 02/01/2036		11,500		12,748
	Volkswagen Credit Auto Master Trust							Anheuser-Busch InBev Worldwide Inc
	0.88%, 07/22/2019^(d),(e)		11,000			10,979		2.50%, 07/15/2022		9,000		9,100
				$		80,671		7.75%, 01/15/2019		10,000		11,305
								Innovation Ventures LLC / Innovation
	Automobile Manufacturers - 1.21%
								Ventures Finance Corp
	American Honda Finance Corp							9.50%, 08/15/2019^(e)		16,264		17,072
	1.60%, 02/16/2018^(e)		10,000			10,046
	2.30%, 09/09/2026		4,750			4,664				$		58,117
	3.80%, 09/20/2021^(e)		10,000			10,820		Biotechnology - 1.59%
	Ford Motor Credit Co LLC							Amgen Inc
	4.39%, 01/08/2026		9,500			10,003		3.63%, 05/15/2022		4,500		4,792
	General Motors Co							3.88%, 11/15/2021		13,000		13,980
	4.88%, 10/02/2023		4,000			4,307		Gilead Sciences Inc
				$		39,840		3.50%, 02/01/2025		4,750		4,939
								3.65%, 03/01/2026		18,000		18,868
	Banks- 8.86%
								4.40%, 12/01/2021		9,000		9,967
	Bank of America Corp
	3.88%, 08/01/2025		7,000			7,367				$		52,546
	5.42%, 03/15/2017		5,000			5,075		Chemicals - 1.57%
	6.50%, 07/15/2018		2,000			2,158		Airgas Inc
	6.75%, 06/01/2028		2,000			2,500		1.65%, 02/15/2018		13,500		13,565
	8.00%, 07/29/2049^(d),(f)		4,000			4,075		2.38%, 02/15/2020		7,000		7,113
	8.13%, 12/29/2049^(d),(f)		10,000			10,287		3.65%, 07/15/2024		6,750		7,252
	Bank of New York Mellon Corp/The							Westlake Chemical Corp
								3.60%, 08/15/2026^(e)		11,500		11,497
	2.20%, 08/16/2023		9,500			9,362		4.63%, 02/15/2021^(e)		9,250		9,666
	2.60%, 08/17/2020		9,500			9,749		4.88%, 05/15/2023^(e)		2,500		2,600
	2.80%, 05/04/2026		4,500			4,540
	3.00%, 10/30/2028		7,000			6,984				$		51,693
	Citigroup Inc							Commercial Services - 0.67%
	3.88%, 03/26/2025		20,000			20,455		ERAC USA Finance LLC
								3.30%, 10/15/2022^(e)		2,000		2,080
	4.45%, 09/29/2027		8,000			8,429
								4.50%, 08/16/2021^(e)		6,000		6,587
	4.50%, 01/14/2022		4,000			4,391
								6.38%, 10/15/2017^(e)		4,000		4,182
	Goldman Sachs Group Inc/The
	3.63%, 01/22/2023		4,000			4,209


Schedule of Investments
Income Fund
October 31, 2016



			Principal						Principal
BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
Commercial Services (continued)						Electronics - 0.61%
ERAC USA Finance LLC	(continued)					Corning Inc
7.00%, 10/15/2037^(e)		$	7,000	$	9,294	2.90%, 05/15/2022		$	5,000	$	5,163
			$		22,143	4.25%, 08/15/2020			10,000		10,732
Computers - 0.71%						4.75%, 03/15/2042			4,000		4,118
Apple Inc									$		20,013
2.40%, 05/03/2023			13,000		13,060	Entertainment - 0.04%
3.25%, 02/23/2026			10,000		10,431	Greektown Holdings LLC/Greektown
			$		23,491	Mothership Corp
Credit Card Asset Backed Securities - 0.55%						8.88%, 03/15/2019^(e)			1,250		1,322
Cabela's Credit Card Master Note Trust
0.88%, 03/16/2020^(d)			10,253		10,253	Environmental Control - 1.75%
1.20%, 07/17/2023^(d)			8,000		7,998	Advanced Disposal Services Inc
			$		18,251	5.63%, 11/15/2024^(e),(g)			3,750		3,769
Diversified Financial Services - 1.16%						8.25%, 10/01/2020			21,000		21,945
GE Capital International Funding Co						Republic Services Inc
Unlimited Co						3.20%, 03/15/2025			10,000		10,283
2.34%, 11/15/2020			1,659		1,692	3.55%, 06/01/2022			6,000		6,425
International Lease Finance Corp						3.80%, 05/15/2018			2,000		2,072
8.63%, 01/15/2022			3,000		3,679	5.00%, 03/01/2020			12,000		13,215
8.75%, 03/15/2017^(d)			8,500		8,711				$		57,709
Jefferies Finance LLC / JFIN Co-Issuer Corp						Food- 0.63	%
7.38%, 04/01/2020^(e)			3,750		3,722	Kraft Heinz Foods Co
Jefferies Group LLC						3.50%, 07/15/2022			5,000		5,269
5.13%, 04/13/2018			5,000		5,207	3.95%, 07/15/2025			14,500		15,502
5.13%, 01/20/2023			1,500		1,591				$		20,771
6.25%, 01/15/2036			9,000		9,189	Gas- 0.24	%
8.50%, 07/15/2019			4,000		4,582	NiSource Finance Corp
			$		38,373	3.85%, 02/15/2023			2,000		2,118
Electric - 6.76%						6.13%, 03/01/2022			5,000		5,914
Black Hills Corp									$		8,032
3.15%, 01/15/2027			7,500		7,510	Healthcare - Services - 2.37%
Entergy Louisiana LLC						HCA Inc
3.25%, 04/01/2028			8,000		8,285	5.88%, 05/01/2023			4,500		4,774
Entergy Texas Inc						7.50%, 02/15/2022			3,000		3,414
2.55%, 06/01/2021			14,500		14,801	7.50%, 11/06/2033			1,700		1,836
Exelon Generation Co LLC						HealthSouth Corp
6.20%, 10/01/2017			14,000		14,595	5.75%, 11/01/2024			7,000		7,219
6.25%, 10/01/2039			3,000		3,253	5.75%, 09/15/2025			1,000		1,035
GenOn Americas Generation LLC						Roche Holdings Inc
8.50%, 10/01/2021			12,500		10,781	1.18%, 09/30/2019^(d),(e)			31,000		31,045
GenOn Energy Inc						Surgery Center Holdings Inc
9.88%, 10/15/2020			8,550		6,391	8.88%, 04/15/2021^(e)			27,000		28,755
LG&E & KU Energy LLC									$		78,078
3.75%, 11/15/2020			5,000		5,303	Housewares - 0.34%
4.38%, 10/01/2021			5,000		5,466	Newell Brands Inc
Louisville Gas & Electric Co						3.85%, 04/01/2023			6,000		6,367
3.30%, 10/01/2025			3,000		3,169	4.20%, 04/01/2026			4,500		4,863
Metropolitan Edison Co									$		11,230
3.50%, 03/15/2023^(e)			9,000		9,233
						Insurance - 2.75%
Oncor Electric Delivery Co LLC						Berkshire Hathaway Finance Corp
2.95%, 04/01/2025			4,000		4,112	1.17%, 01/12/2018^(d)			14,500		14,543
7.00%, 09/01/2022			17,000		21,420	Berkshire Hathaway Inc
PacifiCorp						3.00%, 02/11/2023			5,000		5,233
5.25%, 06/15/2035			5,000		5,954	3.75%, 08/15/2021			5,000		5,448
6.25%, 10/15/2037			2,000		2,695	Fidelity National Financial Inc
Solar Star Funding LLC						5.50%, 09/01/2022			5,000		5,415
3.95%, 06/30/2035^(e)			6,964		6,742
						6.60%, 05/15/2017			12,000		12,294
5.38%, 06/30/2035^(e)			15,490		16,844
						First American Financial Corp
Southwestern Electric Power Co						4.30%, 02/01/2023			20,000		20,180
2.75%, 10/01/2026			10,000		9,831	4.60%, 11/15/2024			5,000		5,106
3.55%, 02/15/2022			12,000		12,703	Prudential Financial Inc
Talen Energy Supply LLC						4.50%, 11/16/2021			2,000		2,223
4.60%, 12/15/2021			11,000		9,013	5.38%, 06/21/2020			2,000		2,227
6.50%, 05/01/2018			3,000		3,112	7.38%, 06/15/2019			4,000		4,574
TransAlta Corp						8.88%, 06/15/2068^(d)			12,000		13,260
4.50%, 11/15/2022			18,000		17,611				$		90,503
6.90%, 05/15/2018^(d)			4,000		4,204
						Internet - 0.06%
Tucson Electric Power Co						VeriSign Inc
3.05%, 03/15/2025			2,000		1,988	5.25%, 04/01/2025			1,750		1,846
3.85%, 03/15/2023			14,000		14,514
5.15%, 11/15/2021			3,000		3,326
			$		222,856


Schedule of Investments
Income Fund
October 31, 2016



				Principal						Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
	Iron & Steel - 0.89%						Oil & Gas (continued)
	Allegheny Technologies Inc						Whiting Petroleum Corp
	5.95%, 01/15/2021		$	17,000	$	15,725	5.75%, 03/15/2021		$	18,000	$	16,695
	7.88%, 08/15/2023^(d)			14,250		13,609				$		153,561
				$		29,334	Oil & Gas Services - 2.07%
	Leisure Products & Services - 0.16%						Archrock Partners LP / Archrock Partners
	Royal Caribbean Cruises Ltd						Finance Corp
	7.25%, 03/15/2018			5,000		5,350	6.00%, 04/01/2021			24,000		22,860
							Schlumberger Holdings Corp
	Lodging - 0.13%						3.63%, 12/21/2022^(e)			6,500		6,948
	Boyd Gaming Corp						4.00%, 12/21/2025^(e)			9,500		10,203
	6.88%, 05/15/2023			4,000		4,280	Weatherford International Ltd
							4.50%, 04/15/2022			16,500		14,850
	Media- 2.12	%					5.13%, 09/15/2020			14,000		13,300
	21st Century Fox America Inc									$		68,161
	4.50%, 02/15/2021			5,000		5,514	Other Asset Backed Securities - 0.79%
	6.40%, 12/15/2035			8,000		10,037	Drug Royalty II LP 2
	Comcast Corp						3.48%, 07/15/2023^(d),(e)			10,694		10,650
	2.85%, 01/15/2023			10,000		10,346	Drug Royalty III LP 1
	3.13%, 07/15/2022			2,000		2,103	3.98%, 04/15/2027^(d),(e)			6,524		6,489
	5.15%, 03/01/2020			2,000		2,225	PFS Financing Corp
	Historic TW Inc						1.15%, 04/15/2020^(d),(e)			9,000		8,991
	9.15%, 02/01/2023			5,260		6,951				$		26,130
	NBCUniversal Enterprise Inc						Packaging & Containers - 0.26%
	1.56%, 04/15/2018^(d),(e)			3,000		3,021	Sealed Air Corp
	Time Warner Cable LLC						5.50%, 09/15/2025^(e)			2,000		2,133
	4.00%, 09/01/2021			2,000		2,095	6.88%, 07/15/2033^(e)			6,000		6,450
	4.13%, 02/15/2021			2,000		2,125				$		8,583
	5.00%, 02/01/2020			2,000		2,158	Pharmaceuticals - 0.89%
	6.55%, 05/01/2037			6,000		7,041	AbbVie Inc
	6.75%, 06/15/2039			5,500		6,593	2.90%, 11/06/2022			13,750		13,919
	7.30%, 07/01/2038			7,750		9,778	Actavis Funding SCS
				$		69,987	3.45%, 03/15/2022			5,000		5,191
	Miscellaneous Manufacturers - 0.42%						3.80%, 03/15/2025			10,000		10,378
	General Electric Co									$		29,488
	1.85%, 03/15/2023^(d)			13,000		13,251
							Pipelines - 2.75%
	5.30%, 02/11/2021			573		651	Buckeye Partners LP
				$		13,902	3.95%, 12/01/2026^(g)			10,000		9,988
	Office & Business Equipment - 0.02%						4.15%, 07/01/2023			10,000		10,248
	CDW LLC / CDW Finance Corp						4.35%, 10/15/2024			7,500		7,818
	5.50%, 12/01/2024			500		525	Columbia Pipeline Group Inc
							4.50%, 06/01/2025			11,000		11,886
	Oil & Gas - 4.66%						El Paso Natural Gas Co LLC
	BG Energy Capital PLC						7.50%, 11/15/2026			9,500		11,460
	4.00%, 10/15/2021^(e)			11,500		12,514
							Express Pipeline LLC
	BP Capital Markets PLC						7.39%, 12/31/2019^(e)			1,488		1,545
	2.50%, 11/06/2022			3,000		3,026	Southeast Supply Header LLC
	3.12%, 05/04/2026			7,000		7,083	4.25%, 06/15/2024^(e)			14,000		13,629
	3.25%, 05/06/2022			4,000		4,173	Southern Natural Gas Co LLC
	4.75%, 03/10/2019			14,000		15,028	8.00%, 03/01/2032			4,000		5,142
	Canadian Natural Resources Ltd						Tennessee Gas Pipeline Co LLC
	3.80%, 04/15/2024			7,000		7,119	8.38%, 06/15/2032			2,000		2,517
	Helmerich & Payne International Drilling Co						TransCanada PipeLines Ltd
	4.65%, 03/15/2025			7,000		7,271	6.10%, 06/01/2040			5,000		6,361
	Linn Energy LLC / Linn Energy Finance						7.25%, 08/15/2038			7,000		9,898
	Corp									$		90,492
	0.00%, 05/15/2019^(a)			16,000		5,320
							REITS- 6.48	%
	Nabors Industries Inc						Alexandria Real Estate Equities Inc
	5.00%, 09/15/2020			14,000		14,157	3.90%, 06/15/2023			4,000		4,177
	5.10%, 09/15/2023			5,000		4,983	4.30%, 01/15/2026			9,000		9,646
	Petro-Canada						4.60%, 04/01/2022			20,500		22,235
	9.25%, 10/15/2021			8,500		10,828	CubeSmart LP
	Phillips 66						4.00%, 11/15/2025			5,000		5,260
	4.30%, 04/01/2022			9,000		9,886	4.38%, 12/15/2023			8,000		8,635
	Rowan Cos Inc						4.80%, 07/15/2022			15,000		16,566
	4.88%, 06/01/2022			8,000		6,880	Duke Realty LP
	5.00%, 09/01/2017			14,000		14,105	3.25%, 06/30/2026			5,000		5,035
	Tesoro Corp						3.88%, 10/15/2022			3,000		3,184
	5.38%, 10/01/2022			8,750		8,991	4.38%, 06/15/2022			4,000		4,342
	W&T Offshore Inc						HCP Inc
	8.50%, 06/15/2021^(e)			5,050		1,944
							2.63%, 02/01/2020			5,000		5,059
	9.00%, 05/15/2020^(e)			5,681		3,558
							3.75%, 02/01/2019			5,000		5,170
							5.38%, 02/01/2021			3,000		3,345


Schedule of Investments
Income Fund
October 31, 2016



			Principal					U.S. GOVERNMENT & GOVERNMENT		Principal
BONDS (continued)			Amount (000's)	Value(000			's)	AGENCY OBLIGATIONS - 33.20%		Amount (000's)	Value (000's)
REITS (continued)								Federal Home Loan Mortgage Corporation (FHLMC) - 5.10%
Healthcare Realty Trust Inc								3.00%, 10/01/2042	$	11,850	$	12,230
3.88%, 05/01/2025		$	5,000		$	5,089		3.00%, 10/01/2042		12,374		12,816
5.75%, 01/15/2021			4,000			4,511		3.00%, 11/01/2042		12,272		12,682
Hospitality Properties Trust								3.00%, 06/01/2043		15,206		15,683
4.50%, 06/15/2023			5,000			5,111		3.50%, 10/01/2041		6,183		6,509
4.65%, 03/15/2024			5,000			5,106		3.50%, 04/01/2042		7,422		7,819
5.00%, 08/15/2022			14,000			15,142		3.50%, 04/01/2042		8,942		9,453
Kimco Realty Corp								3.50%, 04/01/2045		14,564		15,445
6.88%, 10/01/2019			12,000			13,707		4.00%, 04/01/2039		5,307		5,824
Omega Healthcare Investors Inc								4.00%, 02/01/2045		10,738		11,483
5.25%, 01/15/2026			7,500			7,930		4.00%, 02/01/2046		14,906		15,955
Simon Property Group LP								4.50%, 05/01/2039		3,042		3,323
2.75%, 02/01/2023			7,000			7,122		4.50%, 06/01/2039		2,629		2,890
4.38%, 03/01/2021			3,000			3,284		4.50%, 07/01/2039		7,046		7,803
10.35%, 04/01/2019			9,000			10,690		4.50%, 12/01/2040		7,489		8,218
Ventas Realty LP / Ventas Capital Corp								4.50%, 10/01/2041		9,471		10,370
3.25%, 08/15/2022			8,000			8,281		5.00%, 08/01/2035		1,086		1,196
4.00%, 04/30/2019			3,000			3,148		5.00%, 10/01/2038		1,588		1,718
Welltower Inc								5.00%, 08/01/2039		4,385		4,889
3.75%, 03/15/2023			3,000			3,128		5.50%, 11/01/2017		108		109
4.50%, 01/15/2024			5,000			5,417		5.50%, 01/01/2018		29		29
4.95%, 01/15/2021			3,000			3,303		5.50%, 05/01/2031		270		305
6.13%, 04/15/2020			2,000			2,262		5.50%, 06/01/2035		502		570
Weyerhaeuser Co								6.00%, 03/01/2031		39		45
3.25%, 03/15/2023			5,000			4,948		6.00%, 05/01/2032		137		157
4.70%, 03/15/2021			12,000			12,933		6.50%, 01/01/2029		54		63
				$		213,766		6.50%, 05/01/2029		108		124
Savings & Loans - 0.22%								6.50%, 06/01/2029		47		54
First Niagara Financial Group Inc								6.50%, 06/01/2029		85		97
7.25%, 12/15/2021			6,000			7,326		6.50%, 08/01/2029		68		77
								7.00%, 01/01/2032		23		23
Software - 1.32%											$	167,959
Oracle Corp								Federal National Mortgage Association (FNMA) - 14.01%
2.50%, 05/15/2022			24,000			24,269		3.00%, 03/01/2042		9,054		9,341
2.95%, 05/15/2025			19,000			19,405		3.00%, 03/01/2042		9,614		9,918
				$		43,674		3.00%, 05/01/2042		10,639		10,981
Telecommunications - 1.52%								3.00%, 06/01/2042		9,735		10,046
Qwest Corp								3.00%, 06/01/2042		9,896		10,213
6.75%, 12/01/2021			19,000			21,066		3.50%, 12/01/2040		6,961		7,340
Sprint Corp								3.50%, 01/01/2041		5,841		6,158
7.88%, 09/15/2023			7,500			7,425		3.50%, 01/01/2041		5,474		5,771
Sprint Spectrum Co LLC / Sprint Spectrum Co								3.50%, 12/01/2041		4,806		5,044
II LLC / Sprint Spectrum Co III LLC								3.50%, 01/01/2042		7,781		8,257
3.36%, 03/20/2023^(e)			7,250			7,268		3.50%, 03/01/2042		8,252		8,695
T-Mobile USA Inc								3.50%, 04/01/2042		10,727		11,307
6.38%, 03/01/2025			13,500			14,471		3.50%, 02/01/2043		13,267		14,074
				$		50,230		3.50%, 06/01/2043		13,069		13,865
Transportation - 0.48%								3.50%, 03/01/2045		13,960		14,804
Trailer Bridge Inc								3.50%, 07/01/2045		16,154		17,081
0.00%, 11/15/2016^(a),(b),(c)			12,000			—		3.50%, 05/01/2046		16,562		17,417
17.00%, 03/31/2017 ^(b),(c),(d)			17,670			15,652		3.50%, 06/01/2046		14,794		15,558
				$		15,652		4.00%, 03/01/2039		3,637		3,901
Trucking & Leasing - 0.68%								4.00%, 08/01/2040		3,619		3,884
Penske Truck Leasing Co Lp / PTL Finance								4.00%, 09/01/2040		7,128		7,738
Corp								4.00%, 11/01/2040		4,195		4,508
3.75%, 05/11/2017^(e)			22,000			22,267		4.00%, 11/01/2040		2,973		3,191
								4.00%, 10/01/2041		4,209		4,504
TOTAL BONDS				$		2,065,764		4.00%, 10/01/2041		5,684		6,109
								4.00%, 11/01/2041		11,721		12,596
SENIOR FLOATING RATE INTERESTS -			Principal
								4.00%, 04/01/2042		8,605		9,249
0.21	%		Amount (000's)	Value(000			's)
								4.00%, 08/01/2043		14,017		15,214
Oil & Gas - 0.18%
								4.00%, 08/01/2043		11,651		12,598
Drillships Financing Holding Inc, Term Loan
								4.00%, 11/01/2043		13,772		14,983
B1
6.00%, 03/31/2021^(d)		$	9,540	$		4,866		4.00%, 11/01/2043		11,916		12,882
								4.00%, 01/01/2044		12,441		13,451
Drillships Ocean Ventures Inc, Term Loan B
5.50%, 07/16/2021^(d)			1,466			1,039		4.00%, 02/01/2044		13,143		14,259
								4.00%, 07/01/2044		11,881		12,716
				$		5,905
								4.00%, 09/01/2044		11,538		12,349
Transportation - 0.03%								4.00%, 11/01/2044		14,239		15,349
Trailer Bridge Inc, Term Loan								4.50%, 08/01/2039		2,560		2,840
10.00%, 03/31/2017 ^(b),(c),(d)			1,095			1,095
								4.50%, 05/01/2040		3,483		3,838
								4.50%, 08/01/2040		11,517		12,602
TOTAL SENIOR FLOATING RATE INTERESTS				$		7,000		4.50%, 10/01/2040		7,975		8,731


Schedule of Investments
Income Fund
October 31, 2016



U.S. GOVERNMENT & GOVERNMENT		Principal				(g) Security purchased on a when-issued basis.
AGENCY OBLIGATIONS (continued)	Amount (000's)		Value (000's)
Federal National Mortgage Association (FNMA) (continued)
4.50%, 12/01/2040	$	8,753	$	9,619
						Portfolio Summary (unaudited)
4.50%, 08/01/2041		10,255		11,200
4.50%, 10/01/2043		8,213		8,966		Sector	Percent
4.50%, 05/01/2044		14,425		15,790		Financial	19.47	%
5.00%, 01/01/2018		85		87		Mortgage Securities	19.11	%
5.00%, 08/01/2035		2,275		2,522		Government	14.09	%
5.00%, 04/01/2040		3,553		4,005		Energy	9.76	%
5.00%, 06/01/2040		3,095		3,473		Consumer, Non-cyclical	7.91	%
5.50%, 03/01/2033		225		255		Utilities	7.00	%
5.50%, 02/01/2035		2,189		2,485		Industrial	4.23	%
6.00%, 04/01/2032		91		105		Investment Companies	4.00	%
6.50%, 09/01/2028		48		56		Asset Backed Securities	3.79	%
6.50%, 11/01/2028		26		30		Communications	3.70	%
6.50%, 05/01/2031		25		29		Consumer, Cyclical	2.60	%
7.00%, 01/01/2030		4		4		Basic Materials	2.46	%
			$	461,988		Technology	2.05	%
						Other Assets and Liabilities	(0.17	)%
Government National Mortgage Association (GNMA) - 0.00%
7.00%, 06/20/2031		82		101		TOTAL NET ASSETS	100.00	%

U.S. Treasury - 14.09%
0.63%, 12/15/2016		15,000		15,007
0.75%, 10/31/2017		15,000		15,004
0.88%, 02/28/2017		15,000		15,027
1.25%, 10/31/2019		15,000		15,107
1.38%, 11/30/2018		15,000		15,146
1.50%, 08/15/2026		15,000		14,552
1.63%, 04/30/2019		15,000		15,250
1.63%, 07/31/2019		15,000		15,262
1.63%, 06/30/2020		15,000		15,255
1.63%, 11/15/2022		15,000		15,086
1.75%, 05/15/2022		15,000		15,236
1.75%, 05/15/2023		15,000		15,158
2.00%, 11/15/2021		15,000		15,459
2.25%, 11/15/2024		5,000		5,198
2.38%, 05/31/2018		15,000		15,364
2.50%, 05/15/2024		15,000		15,888
2.63%, 11/15/2020		15,000		15,829
2.75%, 11/15/2023		15,000		16,129
2.88%, 05/15/2043		15,000		15,922
2.88%, 08/15/2045		15,000		15,895
3.00%, 11/15/2044		15,000		16,293
3.00%, 11/15/2045		15,000		16,286
3.13%, 05/15/2021		15,000		16,201
3.13%, 08/15/2044		15,000		16,686
3.38%, 05/15/2044		15,000		17,458
3.50%, 02/15/2039		15,000		17,842
3.63%, 02/15/2020		15,000		16,233
3.63%, 02/15/2044		15,000		18,230
3.75%, 11/15/2043		10,000		12,429
4.38%, 02/15/2038		15,000		20,171
			$	464,603
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
OBLIGATIONS			$	1,094,651
Total Investments			$	3,302,374
Other Assets and Liabilities - (0.17)%			$	(5,475	)
TOTAL NET ASSETS - 100.00%			$	3,296,899


Schedule of Investments
Inflation Protection Fund
October 31, 2016



	INVESTMENT COMPANIES - 1.56%		Shares Held		Value(000			's)			Principal
	Money Market Funds - 1.56%								BONDS (continued)		Amount (000's)		Value(000			's)
	BlackRock Liquidity Funds FedFund Portfolio		28,155,463		$		28,155		Other Asset Backed Securities (continued)
									Fannie Mae REMIC Trust 2003-W16
	TOTAL INVESTMENT COMPANIES				$		28,155			0.83%, 11/25/2033^(a)	$	1		$	1
			Principal						Long Beach Mortgage Loan Trust 2004-2
										1.33%, 06/25/2034^(a)		79			76
	BONDS- 4.06	%	Amount (000's)		Value(000			's)
	Commercial Mortgage Backed Securities - 0.00%												$		234
	CD 2007-CD4 Commercial Mortgage Trust								Sovereign - 3.82%
	0.39%, 12/11/2049^(a),(b),(c)		$	2,664		$	1		Italy Buoni Poliennali Del Tesoro
	Commercial Mortgage Trust 2007-GG9									1.25%, 09/15/2032^(c)	EUR	2,408			2,731
	0.23%, 03/10/2039^(a),(b),(c)			19,454			4			2.35%, 09/15/2024^(c)		2,858			3,577
	Ginnie Mae									2.60%, 09/15/2023		1,073			1,369
	1.08%, 03/16/2047^(a),(b)			329			5			2.80%, 03/01/2067^(c)		4,873			4,889
	ML-CFC Commercial Mortgage Trust 2006-								Japanese Government CPI Linked Bond
	3									0.10%, 09/10/2024	JPY	2,114,934			21,256
	0.61%, 07/12/2046^(a),(b),(c)			1,055			—			0.10%, 03/10/2025		1,019,506			10,261
					$		10			0.10%, 03/10/2026		877,304			8,855
	Home Equity Asset Backed Securities - 0.00%								New Zealand Government Bond
										2.53%, 09/20/2035^(a)	NZD	8,135			6,431
	New Century Home Equity Loan Trust 2005-
										3.08%, 09/20/2030^(a)		11,359			9,665
	1
	1.11%, 03/25/2035^(a)			55			55						$		69,034
	Option One Mortgage Loan Trust 2005-1								TOTAL BONDS				$		73,490
	2.03%, 02/25/2035^(a)			23			4		U.S. GOVERNMENT & GOVERNMENT		Principal
					$		59		AGENCY OBLIGATIONS - 94.20%		Amount (000's)		Value(000			's)
	Mortgage Backed Securities - 0.23%								U.S. Treasury Inflation-Indexed Obligations - 94.20%
	Alternative Loan Trust 2006-OA6									0.13%, 04/15/2019	$	152,008	$		154,433
	0.79%, 07/25/2046^(a)			226			123			0.13%, 04/15/2020		99,198			101,084
	Alternative Loan Trust 2007-OA7									0.13%, 04/15/2021		93,077			94,931
	0.74%, 05/25/2047^(a)			1,603			572			0.13%, 01/15/2022		56,387			57,498
	Bear Stearns ALT-A Trust 2007-2									0.13%, 07/15/2022		17,459			17,857
	0.70%, 04/25/2037^(a)			444			335			0.13%, 01/15/2023		72,094			73,127
	ChaseMortgageFinanceTrust Series2007-									0.13%, 07/15/2024		102,738			103,783
	A2									0.13%, 07/15/2026		37,459			37,561
	3.10%, 07/25/2037^(a)			85			85			0.25%, 01/15/2025		114,252			115,764
	Fannie Mae REMIC Trust 2004-W5									0.38%, 07/15/2023		18,691			19,322
	0.98%, 02/25/2047^(a)			31			30			0.38%, 07/15/2025		15,615			16,030
	Fannie Mae REMIC Trust 2005-W2									0.63%, 07/15/2021		60,523			63,484
	0.73%, 05/25/2035^(a)			19			19			0.63%, 01/15/2024		93,230			97,394
	Freddie Mac REMICS									0.63%, 01/15/2026		65,161			68,017
	0.93%, 09/15/2033^(a)			15			15			0.63%, 02/15/2043		27,583			26,976
	0.98%, 06/15/2023^(a)			1			1			0.75%, 02/15/2042		43,821			44,095
	HomeBanc Mortgage Trust 2005-5									0.75%, 02/15/2045^(d)		38,181			38,359
	0.87%, 01/25/2036^(a)			400			348			1.00%, 02/15/2046		8,600			9,264
	Impac CMB Trust Series 2004-5									1.13%, 01/15/2021		86,040			91,438
	2.86%, 10/25/2034^(a)			24			19			1.25%, 07/15/2020		17,919			19,133
	Impac CMB Trust Series 2004-6									1.38%, 01/15/2020		26,446			28,044
	1.51%, 10/25/2034^(a)			15			15			1.38%, 02/15/2044^(d)		40,065			46,407
	Impac CMB Trust Series 2005-1									1.75%, 01/15/2028		27,943			32,419
	1.15%, 04/25/2035^(a)			120			104			2.00%, 01/15/2026		17,851			20,810
	Impac CMB Trust Series 2005-5									2.13%, 02/15/2040		18,765			24,489
	1.30%, 08/25/2035^(a)			25			16			2.13%, 02/15/2041		47,061			61,900
	Impac CMB Trust Series 2007-A									2.38%, 01/15/2025		41,593			49,246
	0.78%, 05/25/2037^(a),(c)			528			480			2.38%, 01/15/2027		51,494			62,603
	JP Morgan Alternative Loan Trust 2007-A1									2.50%, 01/15/2029		38,478			48,326
	0.68%, 03/25/2037^(a)			577			552			3.38%, 04/15/2032		815			1,181
	Merrill Lynch Alternative Note Asset Trust									3.63%, 04/15/2028		27,586			37,698
	Series 2007-A3									3.88%, 04/15/2029^(e)		29,126			41,487
	0.74%, 04/25/2037^(a)			2,365			1,374						$		1,704,160
	WaMu Mortgage Pass-Through Certificates								TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
	Series 2005-AR2 Trust								OBLIGATIONS				$		1,704,160
	0.90%, 01/25/2045^(a)			68			62		TOTAL PURCHASED OPTIONS - 0.23%				$		4,128
	WaMu Mortgage Pass-Through Certificates								TOTAL PURCHASED CAPPED OPTIONS - 0.00%				$		—
	Series 2006-AR9 Trust								TOTAL PURCHASED INTEREST RATE SWAPTIONS -0.30%
	0.75%, 08/25/2046^(a)			26			3						$		5,470
					$		4,153		Total Investments				$		1,815,403
	Other Asset Backed Securities - 0.01%								Other Assets and Liabilities - (0.35)%				$		(6,388	)
	Argent Securities Trust 2006-W3								TOTAL NET ASSETS - 100.00%				$		1,809,015
	0.65%, 04/25/2036^(a)			30			12
	Asset-Backed Pass-Through Certificates
	Series 2004-R2								(a)	Variable Rate. Rate shown is in effect at October 31, 2016.
	1.15%, 04/25/2034^(a)			113			112		(b)	Security is an Interest Only Strip.
	Countrywide Asset-Backed Certificates
	1.66%, 12/25/2032^(a)			36			33


Portfolio Summary (unaudited)
Sector			Percent
Government			98.02	%
Investment Companies			1.56	%
Purchased Interest Rate Swaptions			0.30	%
Purchased Options			0.23	%
Mortgage Securities			0.23	%
Asset Backed Securities			0.01	%
Purchased Capped Options			0.00	%
Other Assets and Liabilities			(0.35	)%
TOTAL NET ASSETS			100.00	%

Foreign Currency Contracts

									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Accept			In Exchange For			Fair Value		Asset		Liability
UBS AG	01/27/2017	GBP	7,285,000		$	8,911	$	8,935	$	24	$	—
Total									$	24	$	—
									Unrealized Appreciation/(Depreciation)
Counterparty	Delivery Date	Contracts to Deliver			In Exchange For			Fair Value		Asset		Liability
Bank of America NA	12/05/2016	JPY	2,023,383,500		$	19,244	$	19,322	$	— $		(78	)
Barclays Bank PLC	11/04/2016	JPY	2,027,972,500			19,967		19,340		627		—
Citigroup Inc	11/04/2016	JPY	1,100,000			10		10		—		—
Commonwealth Bank of Australia	11/03/2016	NZD	22,254,000			16,150		15,913		237		—
Deutsche Bank AG	11/03/2016	EUR	2,382,000			2,676		2,615		61		—
Deutsche Bank AG	12/05/2016	EUR	9,563,000			10,480		10,510		—		(30	)
Deutsche Bank AG	12/05/2016	NZD	22,254,000			15,899		15,888		11		—
Goldman Sachs & Co	12/05/2016	EUR	43,000			47		47		—		—
Goldman Sachs & Co	12/05/2016	JPY	2,023,383,500			19,299		19,321		—		(22	)
Royal Bank of Scotland PLC	11/03/2016	EUR	8,059,000			9,046		8,847		199		—
UBS AG	11/04/2016	JPY	2,027,972,500			20,056		19,340		716		—
Westpac Banking Corp	11/04/2016	JPY	5,440,000			54		52		2		—
Total									$	1,853	$	(130	)

Amounts in thousands except contracts


Futures Contracts

												Unrealized
Type	Long/Short		Contracts		Notional Value					Fair Value		Appreciation/(Depreciation)
90 Day Eurodollar; December 2017		Long	738		$	182,721		$		182,397	$	(324	)
90 Day Eurodollar; December 2018		Short	738			182,489				182,065		424
90 Day Eurodollar; September 2018		Long	1,015			250,896				250,540		(356	)
Euro Bund 10 Year Bund; December 2016		Long	38			6,801				6,765		(36	)
Euro Buxl 30 Year Bond; December 2016		Short	33			6,913				6,516		397
Euro-BTP; December 2016		Short	168			26,294				25,554		740
Japan 10 Year Bond TSE; December 2016		Short	34			49,198				49,186		12
US 10 Year Note; December 2016		Short	204			26,590				26,444		146
US 10 Year Ultra Note; December 2016		Long	166			23,618				23,492		(126	)
US 2 Year Note; December 2016		Short	551			120,375				120,195		180
US 5 Year Note; December 2016		Long	858			104,084				103,644		(440	)
US Long Bond; December 2016		Short	17			2,794				2,766		28
US Ultra Bond; December 2016		Short	166			30,132				29,206		926
Total										$		1,571

Amounts in thousands except contracts


Schedule of Investments
Inflation Protection Fund
October 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	$	20,405		$		—		$		496		$	496	$	—
	Consumers
	NAS(CPURNSA)
Barclays Bank PLC	US CPI Urban	Pay	1.63		%	09/13/2017		34,806				—				(176	)		—		(176	)
	Consumers
	NAS(CPURNSA)
Barclays Bank PLC	US CPI Urban	Receive	1.59		%	09/13/2018		34,806				—				276			276		—
	Consumers
	NAS(CPURNSA)
Total									$			—		$		596		$	772	$	(176	)

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	$		6,250	$		—		$		415		$			415
	3 Month LIBOR	Receive	1.13		%	02/28/2021		62,380				1				448					449
	3 Month LIBOR	Receive	1.73		%	08/31/2046		7,000				—				585					585
	US Federal Funds	Receive	0.78		%	02/28/2021		20,150				1				133
	Effective Rate
	(continuous series)																				134
Total									$			2		$		1,581		$			1,583

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 Deutsche Bank AG		3 Month		Pay		2.68%		01/13/2021		$	10,300		$	1,251	$	2,004	$				753
Rate Swap		LIBOR
Call - 30 Year Interest Deutsche Bank AG		3 Month		Pay		2.00%		10/09/2017			18,700			1,341		1,089					(252	)
Rate Swap		LIBOR
Put - 30 Year Interest Barclays Bank PLC		3 Month	Receive			4.00%		11/22/2017			6,900			313		9					(304	)
Rate Swap		LIBOR
Put - 30 Year Interest Deutsche Bank AG		3 Month	Receive			2.68%		01/13/2021			10,300			1,377		904					(473	)
Rate Swap		LIBOR
Put - 30 Year Interest Deutsche Bank AG		3 Month	Receive			2.00%		10/09/2017			18,700			1,341		1,464					123
Rate Swap		LIBOR
Total												$		5,623	$	5,470	$				(153	)

				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		$	94,800		$	(470	) $	(247	) $				223
Rate Swap		LIBOR
Call - 5 Year Interest	Deutsche Bank AG	3 Month	Receive			1.46%		10/09/2017			97,980			(1,345	)	(1,199	)				146
Rate Swap		LIBOR
Put - 2 Year Interest	Deutsche Bank AG	3 Month		Pay		1.90%		06/08/2018			94,800			(402	)	(242	)				160
Rate Swap		LIBOR
Put - 5 Year Interest	Deutsche Bank AG	3 Month		Pay		2.10%		01/13/2017			74,700			(697	)	(7	)				690
Rate Swap		LIBOR
Put - 5 Year Interest	Deutsche Bank AG	3 Month		Pay		1.46%		10/09/2017			97,980			(1,345	)	(1,363	)				(18	)
Rate Swap		LIBOR
Total												$		(4,259) $ (3,058) $					1,201

Amounts in thousands


Options

									Upfront Premiums												Unrealized
Purchased Options Outstanding		Exercise Price				Expiration Date		Contracts	Paid/(Received)							Fair Value			Appreciation/(Depreciation)
Call - EUR versus USD		EUR	1.13	12/23/2016			66,160,000			$		240				$239	$				(1	)
Call - GBP versus USD		GBP	1.35	12/27/2016			13,950,000					50				4					(46	)


						Schedule of Investments
Inflation Protection Fund
October 31, 2016


Options (continued)

													Upfront Premiums								Unrealized
Purchased Options Outstanding				Exercise Price		Expiration Date			Contracts				Paid/(Received)				Fair Value			Appreciation/(Depreciation)
Call - USD versus CAD		$			1.37	11/04/2016			68,050,000			$		39		$	18			$	(21	)
Call - USD versus CAD		$			1.32	11/04/2016			34,025,000					600			692				92
Call - USD versus CAD		$			1.42	11/04/2016			34,025,000					163			—				(163	)
Call - USD versus MXN		$			19.00	11/04/2016			68,050,000					92			355				263
Call - USD versus MXN		$			19.87	11/04/2016			34,025,000					371			5				(366	)
Call - USD versus MXN		$			18.29	11/04/2016			34,025,000					940			1,110				170
Put - CHF versus NOK		CHF			8.00	02/15/2017			17,380,000					127			62				(65	)
Put - CHF versus NOK		CHF			8.10	02/20/2017			17,380,000					207			101				(106	)
Put - EUR versus USD		EUR			1.02	11/04/2016			29,960,000					120			—				(120	)
Put - EUR versus USD		EUR			1.05	12/23/2016			33,080,000					70			53				(17	)
Put - EUR versus USD		EUR			1.09	11/04/2016			29,960,000					513			19				(494	)
Put - GBP versus USD		GBP			1.26	12/26/2016			13,950,000					147			526				379
Put - GBP versus USD		GBP			1.23	12/23/2016			13,950,000					142			310				168
Put - US 10 Year Note Future; December 2016		$			128.50	11/28/2016				2,530				896			634				(262	)
Total												$		4,717		$	4,128			$	(589	)

													Upfront Premiums								Unrealized
Written Options Outstanding					Exercise Price	Expiration Date			Contracts				Paid/(Received)				Fair Value			Appreciation/(Depreciation)
Call - GBP versus USD		GBP			1.32	12/23/2016			13,950,000			$		(112	)	$	(10	)		$	102
Call - GBP versus USD		GBP			1.35	12/27/2016			13,950,000					(113	)		(4	)			109
Call - USD versus CAD		$			1.32	11/04/2016			34,025,000					(299	)		(693	)			(394	)
Call - USD versus CAD		$			1.37	11/04/2016			68,050,000					(628	)		(19	)			609
Call - USD versus MXN		$			18.29	11/04/2016			34,025,000					(520	)		(1,111	)			(591	)
Call - USD versus MXN		$			19.00	11/04/2016			68,050,000					(1,190	)		(354	)			836
Put - CHF versus NOK		CHF			7.90	02/20/2017			17,380,000					(90	)		(42	)			48
Put - EUR versus USD		EUR			1.06	11/04/2016			59,920,000					(565	)		—				565
Put - EUR versus USD		EUR			1.07	01/31/2017			33,080,000					(215	)		(203	)			12
Put - GBP versus USD		GBP			1.26	12/27/2016			13,950,000					(241	)		(526	)			(285	)
Put - GBP versus USD		GBP			1.23	12/23/2016			13,950,000					(345	)		(310	)			35
Total												$		(4,318	)	$	(3,272	)		$	1,046

Amounts in thousands except contracts


Purchased Capped Options

															Upfront
	Counterparty	Strike								Expiration				Notional	Premiums						Unrealized
Description	(Issuer)	Index			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			$		50,685		$	46	$		—	$	(46	)
Consumers NAS						2	%)
Cap - US CPI Urban	Deutsche Bank AG	2.00	%	Max	(0, USCPIU-			11/11/2016					20,315			22			—		(22	)
Consumers NAS						2	%)
Total														$		68	$		—	$	(68	)

Amounts in thousands


Schedule of Investments
International Emerging Markets Fund
October 31, 2016



COMMON STOCKS - 94.06%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Agriculture - 1.60%					Engineering & Construction (continued)
Gudang Garam Tbk PT	445,700	$	2,319		Promotora y Operadora de Infraestructura	494,503	$	5,517
KT&G Corp	136,698		13,483		SAB de CV
		$	15,802		Voltas Ltd	702,884		4,069
Airlines - 0.64%							$	30,457
AirAsia Bhd	9,589,500		6,331		Food - 3.04%
					Cencosud SA	1,723,758		5,620
Automobile Manufacturers - 2.63%					Charoen Pokphand Foods PCL ^(b)	8,089,000		7,275
Guangzhou Automobile Group Co Ltd	5,234,000		6,321		JBS SA	1,927,200		5,869
Maruti Suzuki India Ltd	108,380		9,581		Uni-President Enterprises Corp	2,592,040		5,008
Tata Motors Ltd	1,259,513		10,046		X5 Retail Group NV ^(a)	207,210		6,176
		$	25,948				$	29,948
Automobile Parts & Equipment - 2.38%					Forest Products & Paper - 1.05%
Hankook Tire Co Ltd	154,648		7,426		Fibria Celulose SA	667,500		5,364
Hiroca Holdings Ltd	881,000		3,069		Sappi Ltd ^(a)	894,133		4,975
Tong Yang Industry Co Ltd	2,799,000		6,513				$	10,339
Xinyi Glass Holdings Ltd ^(a)	7,524,000		6,470		Healthcare - Products - 0.23%
		$	23,478		St Shine Optical Co Ltd	108,000		2,270
Banks - 13.60%
Banco do Brasil SA	517,100		4,753		Holding Companies - Diversified - 0.37%
Banco Santander Chile	62,522,122		3,499		Siam Cement PCL/The	255,200		3,675
Bank Negara Indonesia Persero Tbk PT	11,418,100		4,874
Barclays Africa Group Ltd	1,372,513		15,927		Home Furnishings - 0.62%
China Construction Bank Corp	32,996,722		24,096		Steinhoff International Holdings NV	1,135,193		6,124
Credicorp Ltd	26,351		3,918
ICICI Bank Ltd ADR	771,246		6,393		Insurance - 2.82%
IndusInd Bank Ltd	366,532		6,566		AIA Group Ltd	2,819,200		17,736
Industrial & Commercial Bank of China Ltd	2,072,000		1,244		Ping An Insurance Group Co of China Ltd	1,907,500		10,040
Nedbank Group Ltd	606,621		9,930				$	27,776
OTP Bank PLC	383,699		10,753		Internet - 10.06%
Sberbank of Russia PJSC ADR	1,837,573		17,404		Alibaba Group Holding Ltd ADR^(a)	324,793		33,028
Siam Commercial Bank PCL/The ^(b)	1,431,700		5,862		NAVER Corp	17,512		13,102
Woori Bank	611,953		6,669		Tencent Holdings Ltd	1,917,600		50,821
Yes Bank Ltd	640,196		12,154		Weibo Corp ADR ^(a)	48,202		2,218
		$	134,042				$	99,169
Chemicals - 1.99%					Iron & Steel - 0.91%
Alpek SAB de CV	297,304		442		JSW Steel Ltd	138,657		3,446
Hanwha Chemical Corp	308,396		7,261		Ternium SA ADR	228,539		5,464
Kingboard Chemical Holdings Ltd	1,065,500		3,150				$	8,910
Sinopec Shanghai Petrochemical Co Ltd	9,096,000		4,637		Leisure Products & Services - 0.75%
UPL Ltd	398,558		4,161		Hero MotoCorp Ltd	146,299		7,343
		$	19,651
Coal - 0.79%					Lodging - 0.52%
Adaro Energy Tbk PT	34,223,200		4,155		Galaxy Entertainment Group Ltd	1,258,000		5,151
China Shenhua Energy Co Ltd	1,743,500		3,614
		$	7,769		Media - 2.30%
Commercial Services - 2.80%					Naspers Ltd	135,054		22,619
Kroton Educacional SA	2,278,800		11,344
New Oriental Education & Technology Group	211,773		10,616		Metal Fabrication & Hardware - 0.82%
Inc ADR^(a)					Hyosung Corp	69,417		8,109
Qualicorp SA	877,500		5,672
		$	27,632		Mining - 1.22%
					AngloGold Ashanti Ltd ^(a)	193,803		2,639
Diversified Financial Services - 3.68%
Fubon Financial Holding Co Ltd	8,516,000		12,049		Hindalco Industries Ltd	2,173,550		4,888
Indiabulls Housing Finance Ltd	500,945		6,362		Vedanta Ltd	1,485,008		4,521
Mega Financial Holding Co Ltd	11,594,184		7,927				$	12,048
Shinhan Financial Group Co Ltd	258,530		9,890		Miscellaneous Manufacturers - 1.73%
		$	36,228		Largan Precision Co Ltd	92,000		10,854
Electric - 1.75%					Sunny Optical Technology Group Co Ltd	1,272,000		6,203
Enersis Americas SA	22,179,699		3,748				$	17,057
Huaneng Renewables Corp Ltd	12,404,000		4,156		Oil & Gas - 8.27%
Power Grid Corp of India Ltd	188,009		493		Bharat Petroleum Corp Ltd	824,938		8,282
Tenaga Nasional BHD	2,591,200		8,854		China Petroleum & Chemical Corp	19,349,978		13,994
		$	17,251		CNOOC Ltd	4,235,000		5,329
Electronics - 0.27%					Indian Oil Corp Ltd	1,664,002		8,076
Chin-Poon Industrial Co Ltd	1,407,000		2,694		LUKOIL PJSC ADR	470,483		22,885
					PTT PCL ^(b)	939,600		9,252
Engineering & Construction - 3.09%					SK Innovation Co Ltd	63,209		8,320
Daelim Industrial Co Ltd	77,164		5,499		Tatneft PJSC ADR	161,003		5,374
Grupo Aeroportuario del Centro Norte SAB de	524,933		3,063				$	81,512
CV					Pharmaceuticals - 0.47%
Grupo Aeroportuario del Pacifico SAB de CV	630,300		6,089		Sinopharm Group Co Ltd	953,200		4,629
Larsen & Toubro Ltd	281,280		6,220


Schedule of Investments
International Emerging Markets Fund
October 31, 2016



COMMON STOCKS (continued)		Shares Held	Value (000's)		Portfolio Summary (unaudited)
Pipelines - 0.48%					Country	Percent
Petronet LNG Ltd		819,385	$	4,755	China	20.59	%
					Korea, Republic Of	14.58	%
REITS - 0.81%					Taiwan, Province Of China	13.10	%
Fibra Uno Administracion SA de CV		2,324,100		4,423	India	10.96	%
Macquarie Mexico Real Estate Management		2,799,000		3,522	Brazil	9.51	%
SA de CV ^(a)					South Africa	6.35	%
			$	7,945	Hong Kong	5.34	%
Retail - 1.73%					Russian Federation	5.27	%
Lojas Renner SA		500,800		4,235	Mexico	3.20	%
Mr Price Group Ltd		20,394		232	Thailand	2.64	%
Raia Drogasil SA		184,400		4,104	Indonesia	2.34	%
Wal-Mart de Mexico SAB de CV		4,005,174		8,472	Malaysia	1.54	%
			$	17,043	Chile	1.30	%
Semiconductors - 13.53%					Hungary	1.09	%
Powertech Technology Inc		2,769,000		7,901	Luxembourg	0.56	%
Samsung Electronics Co Ltd		37,971		54,311	United States	0.50	%
Silicon Motion Technology Corp ADR		43,173		1,753	Peru	0.40	%
SK Hynix Inc		271,145		9,698	Other Assets and Liabilities	0.73	%
Taiwan Semiconductor Manufacturing Co Ltd		9,139,685		54,850	TOTAL NET ASSETS	100.00	%
Win Semiconductors Corp		1,720,099		4,777
			$	133,290
Software - 1.25%
NetEase Inc ADR		47,981		12,331

Telecommunications - 5.17%
China Mobile Ltd		1,755,093		20,107
China Telecom Corp Ltd		18,614,000		9,597
Chunghwa Telecom Co Ltd		2,736,000		9,368
Telekomunikasi Indonesia Persero Tbk PT		36,677,300		11,842
			$	50,914
Water - 0.69%
Cia de Saneamento Basico do Estado de Sao		643,800		6,797
Paulo

TOTAL COMMON STOCKS			$	927,037
INVESTMENT COMPANIES - 0.50%		Shares Held	Value (000's)
Money Market Funds - 0.50%
Goldman Sachs Financial Square Funds -		4,977,093		4,977
Government Fund

TOTAL INVESTMENT COMPANIES			$	4,977
PREFERRED STOCKS - 4.71%		Shares Held	Value (000's)
Banks - 1.60%
Itau Unibanco Holding SA 0.18%^(c)		1,307,160	$	15,758

Holding Companies - Diversified - 1.84%
Itausa - Investimentos Itau SA 0.06%^(c)		6,123,490		18,071

Iron & Steel - 1.20%
Vale SA 0.00%^(a),(c)		1,821,479		11,801

Media - 0.07%
Zee Entertainment Enterprises Ltd 6.00%		5,063,071		720

TOTAL PREFERRED STOCKS			$	46,350
Total Investments			$	978,364
Other Assets and Liabilities - 0.73%			$	7,206
TOTAL NET ASSETS - 100.00%			$	985,570


(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
	$22,389 or 2.27% of net assets.
(c)	Variable Rate. Rate shown is in effect at October 31, 2016.


Schedule of Investments
International Fund I
October 31, 2016



COMMON STOCKS - 98.16%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 3.27%					Engineering & Construction - 1.96%
MTU Aero Engines AG	24,757	$	2,585		Grupo Aeroportuario del Centro Norte SAB de	390,000	$	2,276
Safran SA	72,330		4,977		CV
Thales SA	54,430		5,121		Kyowa Exeo Corp	211,000		3,168
		$	12,683		Promotora y Operadora de Infraestructura	195,100		2,177
Agriculture - 1.24%					SAB de CV
KT&G Corp	48,863		4,819				$	7,621
					Entertainment - 1.44%
Apparel - 0.50%					Aristocrat Leisure Ltd	481,041		5,601
Shenzhou International Group Holdings Ltd	291,000		1,927
					Food - 3.45%
Automobile Manufacturers - 2.41%					Bakkafrost P/F	72,000		3,019
Daimler AG	28,055		2,002		Colruyt SA	70,000		3,762
Geely Automobile Holdings Ltd	5,363,000		5,518		Leroy Seafood Group ASA	40,000		2,115
Great Wall Motor Co Ltd ^(a)	1,900,000		1,854		SPAR Group Ltd/The	127,000		1,801
		$	9,374		X5 Retail Group NV ^(a)	91,000		2,712
Automobile Parts & Equipment - 6.13%							$	13,409
Brembo SpA	70,852		4,387		Gas - 0.46%
Continental AG	19,960		3,834		China Resources Gas Group Ltd	565,000		1,772
Hankook Tire Co Ltd	50,000		2,401
Koito Manufacturing Co Ltd	101,800		5,345		Healthcare - Products - 0.46%
Valeo SA	101,550		5,860		St Shine Optical Co Ltd	85,000		1,786
Xinyi Glass Holdings Ltd ^(a)	2,304,000		1,981
		$	23,808		Healthcare - Services - 0.70%
					ICON PLC ^(a)	34,000		2,729
Banks - 1.00%
China Merchants Bank Co Ltd	780,000		1,897
China Minsheng Banking Corp Ltd	1,731,000		1,969		Holding Companies - Diversified - 0.89%
		$	3,866		KOC Holding AS	383,000		1,598
Building Materials - 0.68%					Siam Cement PCL/The	130,000		1,872
Sika AG	550		2,644				$	3,470
					Home Builders - 2.62%
Chemicals - 3.12%					Bellway PLC	80,421		2,327
Johnson Matthey PLC	46,000		1,917		Haseko Corp	488,000		4,749
Nissan Chemical Industries Ltd	184,900		6,269		Iida Group Holdings Co Ltd	91,000		1,759
Symrise AG	57,000		3,915		Taylor Wimpey PLC	765,052		1,325
		$	12,101				$	10,160
Commercial Services - 4.05%					Insurance - 3.02%
Ashtead Group PLC	239,000		3,724		Allianz SE	14,118		2,204
Intertek Group PLC	42,000		1,752		China Life Insurance Co Ltd/Taiwan	2,719,600		2,507
Intrum Justitia AB	87,092		2,685		PICC Property & Casualty Co Ltd	1,255,000		2,026
Kroton Educacional SA	650,000		3,236		Prudential PLC	177,238		2,892
					Swiss Life Holding AG ^(a)	7,997		2,116
New Oriental Education & Technology Group	57,000		2,858
Inc ADR^(a)							$	11,745
Zhejiang Expressway Co Ltd	1,430,000		1,497		Internet - 7.27%
		$	15,752		Alibaba Group Holding Ltd ADR^(a)	20,000		2,034
					Criteo SA ADR^(a)	52,000		1,880
Computers - 5.53%
Atos SE	45,382		4,710		CyberAgent Inc	94,000		2,731
Capgemini SA	21,400		1,772		Dip Corp	90,000		2,384
Foxconn Technology Co Ltd	560,000		1,623		NAVER Corp	7,500		5,611
					Paysafe Group PLC ^(a)	397,000		2,098
Lite-On Technology Corp	1,519,546		2,179
Nomura Research Institute Ltd	88,400		3,066		Start Today Co Ltd	120,000		2,103
Obic Co Ltd	70,500		3,662		Tencent Holdings Ltd	288,200		7,638
					Vipshop Holdings Ltd ADR^(a)	129,000		1,764
Teleperformance	42,374		4,477
		$	21,489				$	28,243
Consumer Products - 1.08%					Leisure Products & Services - 0.53%
Reckitt Benckiser Group PLC	47,000		4,205		Shimano Inc	12,000		2,052

Cosmetics & Personal Care - 0.37%					Lodging - 0.85%
LG Household & Health Care Ltd	2,000		1,431		Star Entertainment Grp Ltd/The	870,183		3,293

Distribution & Wholesale - 0.43%					Machinery - Diversified - 0.44%
Bunzl PLC	62,000		1,665		Hollysys Automation Technologies Ltd	86,000		1,712

Diversified Financial Services - 2.22%					Mining - 2.02%
Macquarie Group Ltd	64,446		3,896		Centamin PLC	1,616,000		3,130
Partners Group Holding AG	9,368		4,742		Evolution Mining Ltd	1,318,066		2,324
		$	8,638		Regis Resources Ltd	950,000		2,396
Electronics - 3.42%							$	7,850
AAC Technologies Holdings Inc	487,007		4,640		Miscellaneous Manufacturers - 1.62%
dormakaba Holding AG ^(a)	1,841		1,279		Largan Precision Co Ltd	23,000		2,714
Fujitsu General Ltd	321,700		7,382		Sunny Optical Technology Group Co Ltd	732,700		3,573
		$	13,301				$	6,287
					Oil & Gas - 2.56%
					DCC PLC	21,000		1,709


Schedule of Investments
International Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)
Oil & Gas (continued)
					(a) Non-Income Producing Security
Neste Oyj	90,000	$	3,883
Novatek OJSC	20,000		2,132
SK Innovation Co Ltd	17,000		2,238
		$	9,962		Portfolio Summary (unaudited)
Packaging & Containers - 0.73%					Country	Percent
CCL Industries Inc	16,000		2,845		Japan	21.15	%
					China	13.60	%
Pharmaceuticals - 6.71%					France	8.27	%
Actelion Ltd ^(a)	39,000		5,635		Taiwan, Province Of China	7.32	%
Alfresa Holdings Corp	192,800		4,074		United Kingdom	5.97	%
Ipsen SA	48,367		3,344		Korea, Republic Of	5.91	%
Mitsubishi Tanabe Pharma Corp	94,000		1,830		Australia	5.01	%
Novo Nordisk A/S	88,389		3,149		Germany	4.75	%
Richter Gedeon Nyrt	92,000		1,975		Switzerland	4.22	%
Sawai Pharmaceutical Co Ltd	32,000		2,068		Hong Kong	3.93	%
Shire PLC	36,000		2,033		Canada	2.49	%
Sinopharm Group Co Ltd	407,000		1,976		United States	1.93	%
		$	26,084		Russian Federation	1.25	%
Real Estate - 2.74%					Mexico	1.15	%
China Overseas Land & Investment Ltd	892,400		2,739		Ireland	1.14	%
Daito Trust Construction Co Ltd	20,000		3,352		Italy	1.13	%
Leopalace21 Corp	271,000		1,762		Finland	1.00	%
Open House Co Ltd	132,000		2,788		Belgium	0.97	%
		$	10,641		Israel	0.92	%
Retail - 3.26%					Brazil	0.83	%
Alimentation Couche-Tard Inc	89,200		4,481		Denmark	0.81	%
JB Hi-Fi Ltd	90,000		1,940		Jersey, Channel Islands	0.80	%
JD Sports Fashion PLC	100,000		1,859		Faroe Islands	0.78	%
Next PLC	25,941		1,526		Sweden	0.69	%
Nitori Holdings Co Ltd	24,000		2,867		Spain	0.61	%
		$	12,673		Isle of Man	0.54	%
Semiconductors - 6.68%					Norway	0.54	%
Infineon Technologies AG	215,000		3,867		Hungary	0.51	%
Mellanox Technologies Ltd ^(a)	37,000		1,606		Thailand	0.48	%
Samsung Electronics Co Ltd	4,500		6,436		South Africa	0.46	%
Silicon Motion Technology Corp ADR	55,000		2,234		Turkey	0.41	%
Taiwan Semiconductor Manufacturing Co Ltd	255,800		7,955		Other Assets and Liabilities	0.43	%
ADR					TOTAL NET ASSETS	100.00	%
Tokyo Electron Ltd	22,000		1,985
Win Semiconductors Corp	670,565		1,862
		$	25,945
Software - 3.77%
Amadeus IT Group SA	50,000		2,353
NetEase Inc ADR	27,900		7,170
Open Text Corp	38,000		2,359
TravelSky Technology Ltd	1,300,000		2,774
		$	14,656
Telecommunications - 4.82%
China Mobile Ltd	312,200		3,577
Chunghwa Telecom Co Ltd	1,622,000		5,554
KDDI Corp	249,800		7,592
Nice Ltd ADR	30,000		1,994
		$	18,717
Toys, Games & Hobbies - 0.61%
Bandai Namco Holdings Inc	79,300		2,375

Transportation - 1.77%
Central Japan Railway Co	36,700		6,241
Hitachi Transport System Ltd	31,000		639
		$	6,880
Water - 1.33%
Guangdong Investment Ltd	3,427,500		5,168

TOTAL COMMON STOCKS		$	381,379
INVESTMENT COMPANIES - 1.41%	Shares Held		Value(000	's)
Money Market Funds - 1.41%
First American Government Obligations Fund	5,488,032		5,488

TOTAL INVESTMENT COMPANIES		$	5,488
Total Investments		$	386,867
Other Assets and Liabilities - 0.43%		$	1,669
TOTAL NET ASSETS - 100.00%		$	388,536


Schedule of Investments
LargeCap Growth Fund
October 31, 2016



COMMON STOCKS - 96.40%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 0.70%					Retail - 8.35%
L-3 Communications Holdings Inc	104,400	$	14,297		Dollar Tree Inc ^(a)	324,254	$	24,497
					Panera Bread Co ^(a)	131,314		25,049
Airlines - 1.78%					TJX Cos Inc/The	658,149		48,539
Delta Air Lines Inc	870,030		36,341		Ulta Salon Cosmetics & Fragrance Inc ^(a)	298,112		72,543
							$	170,628
Beverages - 1.77%					Semiconductors - 8.52%
Constellation Brands Inc	216,320		36,151		Applied Materials Inc	912,800		26,544
					Broadcom Ltd	252,141		42,935
Biotechnology - 0.93%					Lam Research Corp	434,184		42,055
Celgene Corp ^(a)	185,314		18,935		Micron Technology Inc ^(a)	1,707,800		29,306
					NXP Semiconductors NV ^(a)	332,518		33,252
Building Materials - 1.83%							$	174,092
Masco Corp	1,208,200		37,309		Software - 8.19%
					Activision Blizzard Inc	1,279,304		55,227
Chemicals - 0.92%					Fidelity National Information Services Inc	398,528		29,459
Albemarle Corp	225,003		18,799		Microsoft Corp	1,379,000		82,630
							$	167,316
Commercial Services - 6.73%					Transportation - 1.39%
Equifax Inc	236,792		29,355		FedEx Corp	163,125		28,436
FleetCor Technologies Inc ^(a)	359,433		63,009
S&P Global Inc	245,098		29,865		TOTAL COMMON STOCKS		$	1,968,725
Vantiv Inc ^(a)	259,600		15,150
					INVESTMENT COMPANIES - 5.75%	Shares Held		Value(000	's)
		$	137,379		Money Market Funds - 5.75%
Computers - 5.98%					Goldman Sachs Financial Square Funds -	117,396,554		117,397
Accenture PLC - Class A	195,713		22,749		Government Fund
Apple Inc	875,583		99,414
		$	122,163		TOTAL INVESTMENT COMPANIES		$	117,397
Cosmetics & Personal Care - 3.59%					Total Investments		$	2,086,122
Procter & Gamble Co/The	845,035		73,349		Other Assets and Liabilities - (2.15)%		$	(43,855	)
					TOTAL NET ASSETS - 100.00%		$	2,042,267
Diversified Financial Services - 6.87%
Mastercard Inc	684,476		73,253
Visa Inc	812,356		67,027		(a) Non-Income Producing Security
		$	140,280
Electrical Components & Equipment - 0.53%
Acuity Brands Inc	48,931		10,940
					Portfolio Summary (unaudited)
Food - 4.34%					Sector			Percent
Kellogg Co	291,467		21,898		Consumer, Non-cyclical			29.06	%
Kraft Heinz Co/The	362,700		32,262		Technology			22.69	%
Mondelez International Inc	525,755		23,628		Communications			14.97	%
Pinnacle Foods Inc	209,300		10,762		Consumer, Cyclical			14.67	%
		$	88,550		Financial			6.87	%
Healthcare - Products - 8.62%					Investment Companies			5.75	%
Boston Scientific Corp ^(a)	1,423,200		31,310		Industrial			4.45	%
Edwards Lifesciences Corp ^(a)	511,938		48,747		Energy			2.77	%
Intuitive Surgical Inc ^(a)	79,511		53,438		Basic Materials			0.92	%
Thermo Fisher Scientific Inc	288,835		42,467		Other Assets and Liabilities			(2.15	)%
		$	175,962		TOTAL NET ASSETS			100.00	%
Housewares - 1.53%
Newell Brands Inc	649,300		31,179

Internet - 14.97%
Alphabet Inc - A Shares ^(a)	121,252		98,202
Amazon.com Inc ^(a)	102,587		81,025
eBay Inc ^(a)	332,400		9,477
Facebook Inc ^(a)	738,512		96,738
Netflix Inc ^(a)	161,817		20,206
		$	305,648
Leisure Products & Services - 1.76%
Royal Caribbean Cruises Ltd	468,402		36,006

Lodging - 1.25%
Wynn Resorts Ltd	269,960		25,525

Oil & Gas - 2.77%
Diamondback Energy Inc ^(a)	230,029		20,999
Pioneer Natural Resources Co	198,452		35,527
		$	56,526
Pharmaceuticals - 3.08%
DexCom Inc ^(a)	401,922		31,446
Eli Lilly & Co	426,159		31,468
		$	62,914


Schedule of Investments
LargeCap Growth Fund I
October 31, 2016




COMMON STOCKS - 96.78%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.06%					Biotechnology (continued)
Clear Channel Outdoor Holdings Inc	10,845	$	63		Amgen Inc	64,865	$	9,156
Interpublic Group of Cos Inc/The	37,569		841		Biogen Inc ^(a)	97,916		27,434
Omnicom Group Inc	41,421		3,306		BioMarin Pharmaceutical Inc ^(a)	14,629		1,178
		$	4,210		Celgene Corp ^(a)	296,777		30,324
Aerospace & Defense - 1.43%					Charles River Laboratories International Inc	4,679		355
					(a)
B/E Aerospace Inc	9,921		590
Boeing Co/The	602,682		85,840		Gilead Sciences Inc	114,403		8,423
					Illumina Inc ^(a)	67,698		9,217
General Dynamics Corp	6,445		971
					Incyte Corp ^(a)	136,803		11,898
HEICO Corp	2,776		188
					Intercept Pharmaceuticals Inc ^(a)	1,396		173
HEICO Corp - Class A	4,694		282
					Intrexon Corp ^(a)	4,711		123
Lockheed Martin Corp	24,335		5,996
					Ionis Pharmaceuticals Inc ^(a)	10,311		268
Northrop Grumman Corp	10,660		2,441
					Juno Therapeutics Inc ^(a)	4,824		117
Raytheon Co	14,477		1,978
					Regeneron Pharmaceuticals Inc ^(a)	6,710		2,315
Rockwell Collins Inc	11,866		1,000
					Seattle Genetics Inc ^(a)	8,190		423
Spirit AeroSystems Holdings Inc	7,349		370
					United Therapeutics Corp ^(a)	1,041		125
TransDigm Group Inc	4,485		1,222
					Vertex Pharmaceuticals Inc ^(a)	376,030		28,526
		$	100,878
Agriculture - 0.52%							$	286,816
Altria Group Inc	125,214		8,279		Building Materials - 0.40%
					Cree Inc ^(a)	3,227		72
Philip Morris International Inc	275,156		26,536
Reynolds American Inc	32,382		1,784		Eagle Materials Inc	4,653		377
		$	36,599		Fortune Brands Home & Security Inc	14,397		787
Airlines - 1.70%					Lennox International Inc	3,696		539
Alaska Air Group Inc	645,515		46,619		Martin Marietta Materials Inc	5,161		957
American Airlines Group Inc	1,668,447		67,739		Masco Corp	20,867		644
Delta Air Lines Inc	62,227		2,599		Vulcan Materials Co	217,297		24,598
JetBlue Airways Corp ^(a)	5,178		91				$	27,974
Southwest Airlines Co	64,649		2,589		Chemicals - 0.30%
					AdvanSix Inc ^(a)	2,847		45
		$	119,637
Apparel - 1.39%					Air Products & Chemicals Inc	10,841		1,446
					Axalta Coating Systems Ltd ^(a)	15,314		385
Carter's Inc	5,032		435
Hanesbrands Inc	959,780		24,666		Celanese Corp	1,891		138
Michael Kors Holdings Ltd ^(a)	14,692		746		EI du Pont de Nemours & Co	81,697		5,620
NIKE Inc	84,764		4,253		International Flavors & Fragrances Inc	7,106		929
Ralph Lauren Corp	986		97		LyondellBasell Industries NV	22,962		1,827
Skechers U.S.A. Inc ^(a)	12,026		253		Monsanto Co	30,147		3,038
Under Armour Inc - Class A ^(a)	810,545		25,208		NewMarket Corp	688		276
Under Armour Inc - Class C ^(a)	1,603,750		41,473		PPG Industries Inc	16,847		1,569
VF Corp	21,661		1,174		Praxair Inc	16,054		1,879
		$	98,305		RPM International Inc	12,104		575
					Sherwin-Williams Co/The	9,727		2,382
Automobile Manufacturers - 0.82%
					Valspar Corp/The	7,224		720
Ferrari NV	324,160		17,106		Versum Materials Inc ^(a)	5,420		123
PACCAR Inc	11,714		643
Tesla Motors Inc ^(a)	204,421		40,420		WR Grace & Co	3,939		264
							$	21,216
		$	58,169
					Commercial Services - 5.24%
Automobile Parts & Equipment - 0.12%
Adient plc ^(a)	1,255		57		AMERCO	389		125
					Aramark	10,924		407
BorgWarner Inc	3,802		136
					Automatic Data Processing Inc	29,191		2,541
Delphi Automotive PLC	17,318		1,127
					Booz Allen Hamilton Holding Corp	12,049		367
Lear Corp	5,926		728		CoreLogic Inc/United States ^(a)	6,907		294
Mobileye NV ^(a)	158,817		5,905
					CoStar Group Inc ^(a)	2,942		550
Visteon Corp	4,037		285
WABCO Holdings Inc ^(a)	5,087		501		Ecolab Inc	903,370		103,138
					Equifax Inc	10,798		1,339
		$	8,739		Euronet Worldwide Inc ^(a)	5,197		413
Banks - 1.40%					FleetCor Technologies Inc ^(a)	529,716		92,859
Citizens Financial Group Inc	20,794		548		Gartner Inc ^(a)	7,685		661
First Republic Bank/CA	10,782		803		Global Payments Inc	13,887		1,007
Morgan Stanley	1,929,648		64,778		Herc Holdings Inc ^(a)	1,059		32
Signature Bank/New York NY ^(a)	2,697		325
					KAR Auction Services Inc	13,405		571
State Street Corp	456,800		32,072		Live Nation Entertainment Inc ^(a)	8,699		241
		$	98,526		LSC Communications Inc	2,017		49
Beverages - 0.38%					MarketAxess Holdings Inc	3,340		504
Brown-Forman Corp - A Shares	5,170		251		Moody's Corp	9,675		973
Brown-Forman Corp - B Shares	16,249		750		Morningstar Inc	2,278		161
Coca-Cola Co/The	186,220		7,896		Nielsen Holdings PLC	17,990		810
Constellation Brands Inc	10,519		1,758		PayPal Holdings Inc ^(a)	3,685,853		153,553
Dr Pepper Snapple Group Inc	26,655		2,340		Quanta Services Inc ^(a)	5,839		168
Monster Beverage Corp ^(a)	8,844		1,276
					Robert Half International Inc	12,147		455
PepsiCo Inc	117,078		12,551		RR Donnelley & Sons Co	5,379		95
		$	26,822		S&P Global Inc	24,656		3,004
Biotechnology - 4.06%					Sabre Corp	20,649		533
Alexion Pharmaceuticals Inc ^(a)	1,199,724		156,564
					Service Corp International/US	18,872		483
Alnylam Pharmaceuticals Inc ^(a)	5,527		197


Schedule of Investments
LargeCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Commercial Services (continued)					Electrical Components & Equipment (continued)
ServiceMaster Global Holdings Inc ^(a)	12,980	$	465		Hubbell Inc	3,731	$	390
Total System Services Inc	16,186		807				$	2,466
TransUnion ^(a)	6,412		200		Electronics - 3.37%
United Rentals Inc ^(a)	7,486		566		Agilent Technologies Inc	8,754		381
Vantiv Inc ^(a)	14,594		852		Allegion PLC	9,249		591
Western Union Co/The	46,579		935		Amphenol Corp	1,704,731		112,393
WEX Inc ^(a)	4,001		437		Fitbit Inc ^(a)	10,202		135
		$	369,595		Fortive Corp	2,205,179		112,575
Computers - 3.37%					Gentex Corp	20,442		346
Accenture PLC - Class A	39,847		4,632		Honeywell International Inc	71,189		7,808
Apple Inc	717,064		81,416		Johnson Controls International plc	12,546		506
Cognizant Technology Solutions Corp ^(a)	1,429,815		73,421		Mettler-Toledo International Inc ^(a)	2,391		966
CSRA Inc	16,747		420		National Instruments Corp	8,590		241
DST Systems Inc	3,612		347		PerkinElmer Inc	3,014		153
Fortinet Inc ^(a)	13,860		444		Trimble Inc ^(a)	19,726		545
Genpact Ltd ^(a)	2,830,411		65,071		Waters Corp ^(a)	6,980		971
International Business Machines Corp	69,159		10,629				$	237,611
Leidos Holdings Inc	7,984		332		Engineering & Construction - 1.17%
NCR Corp ^(a)	12,990		455		SBA Communications Corp ^(a)	729,991		82,693
Teradata Corp ^(a)	14,240		384
VeriFone Systems Inc ^(a)	10,012		155		Entertainment - 0.02%
		$	237,706		Cinemark Holdings Inc	10,880		433
Consumer Products - 0.11%					Gaming and Leisure Properties Inc	17,761		583
Avery Dennison Corp	7,904		552		Regal Entertainment Group	5,830		125
Church & Dwight Co Inc	23,076		1,114		Vail Resorts Inc	3,609		576
Clorox Co/The	16,010		1,921				$	1,717
Kimberly-Clark Corp	32,923		3,767		Environmental Control - 0.05%
Spectrum Brands Holdings Inc	2,412		326		Stericycle Inc ^(a)	6,689		536
		$	7,680		Waste Management Inc	42,150		2,767
Cosmetics & Personal Care - 1.60%							$	3,303
Colgate-Palmolive Co	21,799		1,556		Food - 0.31%
Coty Inc ^(a)	3,132		72		Blue Buffalo Pet Products Inc ^(a)	6,160		155
Estee Lauder Cos Inc/The	1,276,385		111,211		Campbell Soup Co	16,871		917
		$	112,839		ConAgra Foods Inc	21,917		1,056
Distribution & Wholesale - 0.06%					General Mills Inc	64,565		4,002
Fastenal Co	25,601		998		Hain Celestial Group Inc/The ^(a)	7,667		279
HD Supply Holdings Inc ^(a)	18,667		616		Hershey Co/The	12,339		1,264
LKQ Corp ^(a)	27,795		897		Hormel Foods Corp	21,292		820
Pool Corp	4,312		399		Ingredion Inc	4,668		612
Watsco Inc	2,723		374		Kellogg Co	14,608		1,097
WW Grainger Inc	4,924		1,025		Kraft Heinz Co/The	4,852		432
		$	4,309		Kroger Co/The	111,969		3,469
Diversified Financial Services - 5.50%					McCormick & Co Inc/MD	10,383		995
Affiliated Managers Group Inc ^(a)	4,095		543		Pilgrim's Pride Corp	2,238		49
Alliance Data Systems Corp	5,280		1,080		Post Holdings Inc ^(a)	3,784		288
Ameriprise Financial Inc	4,653		411		Sprouts Farmers Market Inc ^(a)	13,043		289
Artisan Partners Asset Management Inc	4,529		118		Sysco Corp	64,454		3,102
CBOE Holdings Inc	7,604		481		TreeHouse Foods Inc ^(a)	2,036		178
Charles Schwab Corp/The	59,446		1,884		Tyson Foods Inc	24,480		1,734
CME Group Inc	166,000		16,617		WhiteWave Foods Co/The ^(a)	14,932		814
Credit Acceptance Corp ^(a)	841		155		Whole Foods Market Inc	5,839		165
Discover Financial Services	18,576		1,046				$	21,717
Eaton Vance Corp	10,169		356		Food Service - 0.00%
Federated Investors Inc	10,211		276		US Foods Holding Corp ^(a)	4,960		112
Intercontinental Exchange Inc	149,371		40,389
Invesco Ltd	6,318		177		Hand & Machine Tools - 0.02%
Lazard Ltd	2,559		93		Lincoln Electric Holdings Inc	4,477		294
LPL Financial Holdings Inc	1,303		40		Snap-on Inc	4,095		631
Mastercard Inc	106,250		11,371		Stanley Black & Decker Inc	7,034		801
NorthStar Asset Management Group Inc	16,935		232				$	1,726
T Rowe Price Group Inc	16,322		1,045		Healthcare - Products - 6.10%
TD Ameritrade Holding Corp	1,059,552		36,247		ABIOMED Inc ^(a)	3,711		390
Visa Inc	3,339,862		275,572		Align Technology Inc ^(a)	6,825		586
		$	388,133		Baxter International Inc	15,236		725
Electric - 0.00%					Becton Dickinson and Co	20,670		3,471
Dominion Resources Inc/VA	3,253		245		Bio-Techne Corp	3,675		382
					Boston Scientific Corp ^(a)	132,758		2,921
Electrical Components & Equipment - 0.03%					Bruker Corp	11,976		245
Acuity Brands Inc	4,036		902		Cooper Cos Inc/The	3,530		621
AMETEK Inc	4,312		190		CR Bard Inc	4,662		1,010
Emerson Electric Co	16,965		860		Danaher Corp	2,648,529		208,042
Energizer Holdings Inc	2,652		124		Edwards Lifesciences Corp ^(a)	13,398		1,276
					Henry Schein Inc ^(a)	7,441		1,110


Schedule of Investments
LargeCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Healthcare - Products (continued)					Internet (continued)
Hill-Rom Holdings Inc	5,830	$	323		F5 Networks Inc ^(a)	6,472	$	894
Hologic Inc ^(a)	25,257		910		Facebook Inc ^(a)	2,262,749		296,398
IDEXX Laboratories Inc ^(a)	8,078		865		Flipkart Online Services Pvt Ltd ^{(a),(b),(c),(d)}	6,882		663
Intuitive Surgical Inc ^(a)	253,596		170,437		GoDaddy Inc ^(a)	5,884		211
Patterson Cos Inc	8,518		364		Groupon Inc ^(a)	37,469		149
ResMed Inc	12,872		769		Liberty Ventures ^(a)	2,797		112
St Jude Medical Inc	20,993		1,634		LinkedIn Corp ^(a)	7,470		1,416
Stryker Corp	252,697		29,148		Match Group Inc ^(a)	7,124		129
Teleflex Inc	1,122		161		Netflix Inc ^(a)	274,103		34,227
Thermo Fisher Scientific Inc	17,947		2,639		Palo Alto Networks Inc ^(a)	82,300		12,660
Varian Medical Systems Inc ^(a)	8,889		807		Priceline Group Inc/The ^(a)	113,706		167,629
VWR Corp ^(a)	1,978		54		Symantec Corp	9,700		243
West Pharmaceutical Services Inc	7,079		538		Tencent Holdings Ltd ADR	1,201,100		31,865
Zimmer Biomet Holdings Inc	11,497		1,212		TripAdvisor Inc ^(a)	1,440,137		92,860
		$	430,640		VeriSign Inc ^(a)	9,143		768
Healthcare - Services - 4.08%					Yelp Inc ^(a)	4,980		163
Aetna Inc	285,331		30,630		Zillow Group Inc - A Shares ^(a)	3,358		111
Amsurg Corp ^(a)	3,245		194				$	1,492,014
Anthem Inc	160,256		19,528		Iron & Steel - 0.00%
Centene Corp ^(a)	368,580		23,029		Steel Dynamics Inc	5,093		140
Cigna Corp	205,186		24,382
DaVita Inc ^(a)	1,115,269		65,377		Leisure Products & Services - 0.02%
HCA Holdings Inc ^(a)	13,261		1,015		Brunswick Corp/DE	7,618		331
Humana Inc	253,354		43,458		Harley-Davidson Inc	16,059		916
Laboratory Corp of America Holdings ^(a)	4,426		555		Polaris Industries Inc	5,665		434
MEDNAX Inc ^(a)	6,082		372		Vista Outdoor Inc ^(a)	1,729		67
Quintiles IMS Holdings Inc ^(a)	5,423		389				$	1,748
Tenet Healthcare Corp ^(a)	7,600		150		Lodging - 1.36%
UnitedHealth Group Inc	550,916		77,861		Choice Hotels International Inc	3,412		165
Universal Health Services Inc	2,344		283		Hilton Worldwide Holdings Inc	1,494,333		33,772
WellCare Health Plans Inc ^(a)	4,119		468		Hyatt Hotels Corp ^(a)	1,584		80
		$	287,691		Las Vegas Sands Corp	23,180		1,342
Home Builders - 0.03%					Marriott International Inc/MD	15,426		1,060
CalAtlantic Group Inc	1,285		42		MGM Resorts International ^(a)	2,225,932		58,253
DR Horton Inc	18,143		523		Wyndham Worldwide Corp	10,338		681
Lennar Corp - A Shares	9,523		397		Wynn Resorts Ltd	6,308		596
Lennar Corp - B Shares	2,869		96				$	95,949
NVR Inc ^(a)	338		515		Machinery - Diversified - 2.16%
PulteGroup Inc	11,307		210		BWX Technologies Inc	10,186		399
Thor Industries Inc	5,244		416		Cognex Corp	8,564		442
Toll Brothers Inc ^(a)	7,378		202		Deere & Co	4,911		434
		$	2,401		IDEX Corp	6,906		597
Home Furnishings - 0.02%					Manitowoc Foodservice Inc ^(a)	6,889		104
Harman International Industries Inc	3,213		256		Middleby Corp/The ^(a)	5,350		600
Leggett & Platt Inc	12,876		591		Nordson Corp	5,692		570
Tempur Sealy International Inc ^(a)	5,205		281		Rockwell Automation Inc	9,460		1,133
Whirlpool Corp	1,068		160		Roper Technologies Inc	437,770		75,869
		$	1,288		Wabtec Corp/DE	925,830		71,576
Housewares - 0.04%					Xylem Inc/NY	9,640		466
Newell Brands Inc	29,856		1,434				$	152,190
Scotts Miracle-Gro Co/The	4,182		368		Media - 0.61%
Toro Co/The	10,946		524		AMC Networks Inc ^(a)	6,143		301
Tupperware Brands Corp	5,458		325		Cable One Inc	534		308
		$	2,651		CBS Corp	67,557		3,825
Insurance - 0.11%					Charter Communications Inc ^(a)	20,087		5,019
AmTrust Financial Services Inc	2,603		69		Comcast Corp - Class A	218,128		13,485
Aon PLC	25,966		2,878		Discovery Communications Inc - A Shares ^(a)	14,008		366
Arthur J Gallagher & Co	11,679		563		Discovery Communications Inc - C Shares ^(a)	21,515		540
Brown & Brown Inc	2,238		82		DISH Network Corp ^(a)	15,637		916
Erie Indemnity Co	2,160		221		FactSet Research Systems Inc	3,621		560
Lincoln National Corp	5,908		290		Scripps Networks Interactive Inc	8,329		536
Marsh & McLennan Cos Inc	50,762		3,218		Sirius XM Holdings Inc	168,212		701
Progressive Corp/The	3,539		112		Starz ^(a)	8,953		282
XL Group Ltd	9,388		326		Time Warner Inc	33,049		2,941
		$	7,759		Twenty-First Century Fox Inc - A Shares	53,536		1,406
Internet - 21.14%					Twenty-First Century Fox Inc - B Shares	35,515		937
Alibaba Group Holding Ltd ADR^(a)	302,700		30,781		Viacom Inc - A Shares	2,412		102
Alphabet Inc - A Shares ^(a)	243,305		197,053		Viacom Inc - B Shares	27,901		1,048
Alphabet Inc - C Shares ^(a)	232,450		182,366		Walt Disney Co/The	103,685		9,611
Amazon.com Inc ^(a)	551,204		435,352				$	42,884
CDW Corp/DE	15,522		697		Metal Fabrication & Hardware - 0.00%
Dropbox Inc ^{(a),(b),(c),(d)}	52,984		474		Valmont Industries Inc	2,047		262
eBay Inc ^(a)	168,107		4,793


Schedule of Investments
LargeCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Mining - 0.00%					REITS (continued)
Royal Gold Inc	561	$	39		CubeSmart	11,777	$	307
					CyrusOne Inc	5,730		256
Miscellaneous Manufacturers - 0.47%					Digital Realty Trust Inc	9,372		876
3M Co	37,656		6,225		Empire State Realty Trust Inc	8,935		175
AO Smith Corp	14,284		645		Equinix Inc	4,398		1,571
Carlisle Cos Inc	2,316		243		Equity LifeStyle Properties Inc	7,496		568
Donaldson Co Inc	12,031		439		Essex Property Trust Inc	2,551		546
General Electric Co	114,300		3,326		Extra Space Storage Inc	11,055		809
Illinois Tool Works Inc	31,083		3,530		Federal Realty Investment Trust	6,526		948
Ingersoll-Rand PLC	19,974		1,344		Healthcare Trust of America Inc	9,161		280
Textron Inc	439,045		17,597		Iron Mountain Inc	22,487		758
		$	33,349		Lamar Advertising Co	7,694		488
Office & Business Equipment - 0.00%					Life Storage Inc	3,245		262
Pitney Bowes Inc	18,585		332		Omega Healthcare Investors Inc	7,504		239
					Outfront Media Inc	2,498		54
Oil & Gas - 0.05%					Public Storage	15,158		3,239
Apache Corp	23,546		1,401		Regency Centers Corp	2,247		162
Cabot Oil & Gas Corp	30,281		632		Senior Housing Properties Trust	4,772		101
Continental Resources Inc/OK ^(a)	4,707		230		Simon Property Group Inc	26,737		4,972
Devon Energy Corp	5,739		217		Tanger Factory Outlet Centers Inc	8,954		312
Diamondback Energy Inc ^(a)	2,362		216		Ventas Inc	17,254		1,169
EOG Resources Inc	3,887		351				$	23,872
Murphy USA Inc ^(a)	3,077		212		Retail - 6.95%
Parsley Energy Inc ^(a)	2,698		89		Advance Auto Parts Inc	6,201		869
Southwestern Energy Co ^(a)	46,504		483		AutoNation Inc ^(a)	3,177		139
		$	3,831		AutoZone Inc ^(a)	1,864		1,383
Packaging & Containers - 0.06%					Bed Bath & Beyond Inc	2,993		121
Ball Corp	14,955		1,153		Brinker International Inc	6,420		316
Bemis Co Inc	2,273		111		Burlington Stores Inc ^(a)	4,408		330
Berry Plastics Group Inc ^(a)	11,600		507		Cabela's Inc ^(a)	1,053		65
Crown Holdings Inc ^(a)	12,459		676		CarMax Inc ^(a)	16,910		844
Graphic Packaging Holding Co	23,618		295		Casey's General Stores Inc	3,729		421
Owens-Illinois Inc ^(a)	16,023		309		Coach Inc	5,561		200
Packaging Corp of America	8,807		726		Copart Inc ^(a)	9,744		511
Sealed Air Corp	17,589		803		Costco Wholesale Corp	923,594		136,571
		$	4,580		CVS Health Corp	97,899		8,233
Pharmaceuticals - 4.13%					Darden Restaurants Inc	11,361		736
AbbVie Inc	139,721		7,794		Dick's Sporting Goods Inc	7,091		395
ACADIA Pharmaceuticals Inc ^(a)	8,192		191		Dollar General Corp	413,360		28,559
Agios Pharmaceuticals Inc ^(a)	2,412		115		Dollar Tree Inc ^(a)	14,421		1,090
Akorn Inc ^(a)	8,216		197		Domino's Pizza Inc	4,770		807
Alkermes PLC ^(a)	12,807		646		Dunkin' Brands Group Inc	8,835		427
Allergan plc ^(a)	203,454		42,510		Foot Locker Inc	11,614		775
AmerisourceBergen Corp	16,105		1,132		Gap Inc/The	4,734		131
Bristol-Myers Squibb Co	562,397		28,632		Genuine Parts Co	12,788		1,158
Cardinal Health Inc	32,325		2,220		Home Depot Inc/The	121,663		14,844
DexCom Inc ^(a)	927,261		72,549		L Brands Inc	2,767		200
Eli Lilly & Co	245,099		18,098		Liberty Interactive Corp QVC Group ^(a)	22,903		423
Express Scripts Holding Co ^(a)	55,157		3,718		Lowe's Cos Inc	715,266		47,672
Herbalife Ltd ^(a)	6,932		421		lululemon athletica Inc ^(a)	8,844		506
Johnson & Johnson	45,278		5,252		McDonald's Corp	56,149		6,321
					Michaels Cos Inc/The ^(a)	9,478		220
McKesson Corp	22,334		2,840
Mead Johnson Nutrition Co	1,139,858		85,227		MSC Industrial Direct Co Inc	2,785		203
Merck & Co Inc	237,200		13,928		Nordstrom Inc	12,112		630
Mylan NV ^(a)	21,593		788		Nu Skin Enterprises Inc	2,143		132
Neurocrine Biosciences Inc ^(a)	7,314		320		O'Reilly Automotive Inc ^(a)	74,882		19,802
OPKO Health Inc ^(a)	24,106		227		Panera Bread Co ^(a)	2,169		414
Pfizer Inc	50,669		1,607		Ross Stores Inc	407,681		25,497
Premier Inc ^(a)	2,438		78		Sally Beauty Holdings Inc ^(a)	14,634		380
VCA Inc ^(a)	7,604		467		Signet Jewelers Ltd	6,533		531
Zoetis Inc	45,762		2,187		Starbucks Corp	2,714,085		144,037
		$	291,144		Target Corp	4,046		278
Pipelines - 0.02%					TJX Cos Inc/The	79,796		5,885
ONEOK Inc	19,498		944		Tractor Supply Co	528,518		33,101
					Ulta Salon Cosmetics & Fragrance Inc ^(a)	5,209		1,268
Spectra Energy Corp	10,854		454
					Urban Outfitters Inc ^(a)	8,685		291
Williams Cos Inc/The	7,210		211
		$	1,609		Walgreens Boots Alliance Inc	11,261		932
					Wendy's Co/The	14,802		160
REITS - 0.34%
Alexandria Real Estate Equities Inc	742		80		Williams-Sonoma Inc	8,753		405
American Tower Corp	26,927		3,156		Yum! Brands Inc	24,698		2,131
Boston Properties Inc	6,264		755				$	490,344
Care Capital Properties Inc	1,937		51		Semiconductors - 3.18%
Crown Castle International Corp	19,097		1,738		Applied Materials Inc	91,405		2,658
					ASML Holding NV - NY Reg Shares	341,500		36,069


Schedule of Investments
LargeCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)				Shares Held	Value (000's)
Semiconductors (continued)					Textiles - 0.01%
Broadcom Ltd	24,116	$	4,107		Mohawk Industries Inc ^(a)				4,562	$	841
Intel Corp	56,100		1,956
IPG Photonics Corp ^(a)	3,068		298		Toys, Games & Hobbies - 0.03%
KLA-Tencor Corp	14,383		1,080		Hasbro Inc				10,597		884
Lam Research Corp	11,868		1,150		Mattel Inc				30,765		970
Linear Technology Corp	11,028		662							$	1,854
Maxim Integrated Products Inc	26,150		1,036		Transportation - 0.76%
Microchip Technology Inc	19,327		1,170		CH Robinson Worldwide Inc				13,153		896
NVIDIA Corp	54,339		3,867		Expeditors International of Washington Inc				12,637		650
NXP Semiconductors NV ^(a)	1,614,527		161,453		FedEx Corp				257,563		44,899
ON Semiconductor Corp ^(a)	7,557		88		JB Hunt Transport Services Inc				8,410		686
Qorvo Inc ^(a)	1,874		104		Landstar System Inc				4,689		334
QUALCOMM Inc	37,051		2,546		Old Dominion Freight Line Inc ^(a)				4,218		315
Skyworks Solutions Inc	15,371		1,183		Union Pacific Corp				8,373		738
Texas Instruments Inc	64,086		4,541		United Parcel Service Inc				44,253		4,769
Xilinx Inc	8,500		432							$	53,287
		$	224,400		TOTAL COMMON STOCKS					$	6,830,657
Shipbuilding - 0.01%					INVESTMENT COMPANIES - 2.43%				Shares Held	Value (000's)
Huntington Ingalls Industries Inc	3,910		631		Money Market Funds - 2.43%
					Cash Account Trust - Government & Agency				4,393,314		4,393
Software - 10.98%					Portfolio - Government Cash Managed
Activision Blizzard Inc	87,419		3,774		First American Government Obligations Fund				112,236,446		112,236
Adobe Systems Inc ^(a)	941,594		101,231
					Morgan Stanley Institutional Liquidity Funds -				54,679,544		54,680
Akamai Technologies Inc ^(a)	1,285,873		89,330
					Government Portfolio
ANSYS Inc ^(a)	628,965		57,456
										$	171,309
Atlassian Corp PLC ^(a)	2,960		79
					TOTAL INVESTMENT COMPANIES					$	171,309
Autodesk Inc ^(a)	15,181		1,097
Black Knight Financial Services Inc ^(a)	3,901		153		CONVERTIBLE PREFERRED STOCKS -
					0.44		%		Shares Held	Value (000's)
Broadridge Financial Solutions Inc	11,479		742
Cadence Design Systems Inc ^(a)	29,141		745		Internet - 0.44%
					Airbnb Inc - Series D			0.00%^{(a),(b),(c),(d)}	121,527	$	12,760
CDK Global Inc	14,720		804		Airbnb Inc - Series E			0.00%^{(a),(b),(c),(d)}	29,361		3,083
Cerner Corp ^(a)	18,607		1,090
					Dropbox Inc 0.00%^{(a),(b),(c),(d)}				254,085		3,336
Citrix Systems Inc ^(a)	14,385		1,220
Donnelley Financial Solutions Inc ^(a)	2,017		43		Flipkart Online Services Pvt Ltd Series A				2,350		226
					0.00%^{(a),(b),(c),(d)}
Dun & Bradstreet Corp/The	1,892		236
Electronic Arts Inc ^(a)	18,503		1,453		Flipkart Online Services Pvt Ltd Series C				4,148		399
					0.00%^{(a),(b),(c),(d)}
Fidelity National Information Services Inc	11,806		873
First Data Corp ^(a)	31,106		435		Flipkart Online Services Pvt Ltd Series E				7,712		743
					0.00%^{(a),(b),(c),(d)}
Fiserv Inc ^(a)	43,522		4,286
					Uber Technologies Inc			0.00%^{(a),(b),(c),(d)}	209,292		10,208
Guidewire Software Inc ^(a)	6,925		398
										$	30,755
Intuit Inc	229,101		24,913
					TOTAL CONVERTIBLE PREFERRED STOCKS					$	30,755
Jack Henry & Associates Inc	7,776		630
Manhattan Associates Inc ^(a)	7,201		365		PREFERRED STOCKS - 0.23%				Shares Held	Value (000's)
Microsoft Corp	2,441,087		146,270		Internet - 0.11%
MSCI Inc	8,468		679		Flipkart Online Services Pvt Ltd Series G				34,940		3,365
NetSuite Inc ^(a)	1,184,619		110,311		0.00%^{(a),(b),(c),(d)}
Nuance Communications Inc ^(a)	20,495		287		Uber Technologies Inc			0.00%^{(a),(b),(c),(d)}	98,844		4,821
Oracle Corp	93,087		3,576							$	8,186
Paychex Inc	57,898		3,196		Software - 0.12%
PTC Inc ^(a)	5,223		248		Magic Leap Inc 0.00%^{(a),(b),(c),(d)}				168,788		3,888
Rackspace Hosting Inc ^(a)	12,130		387		Snapchat Inc 0.00%^{(a),(b),(c),(d)}				146,799		4,509
Red Hat Inc ^(a)	16,431		1,273							$	8,397
salesforce.com Inc ^(a)	2,081,439		156,441		TOTAL PREFERRED STOCKS					$	16,583
ServiceNow Inc ^(a)	445,844		39,194		Total Investments					$	7,049,304
Splunk Inc ^(a)	11,660		702		Other Assets and Liabilities - 0.12%					$	8,678
SS&C Technologies Holdings Inc	14,298		457		TOTAL NET ASSETS - 100.00%					$	7,057,982
Synopsys Inc ^(a)	2,878		171
Tyler Technologies Inc ^(a)	3,032		486
Ultimate Software Group Inc/The ^(a)	2,501		528		(a)	Non-Income Producing Security
Veeva Systems Inc ^(a)	9,541		371		(b)	Security is Illiquid. At the end of the period, the value of these securities
VMware Inc ^(a)	3,503		275			totaled $48,475 or 0.69% of net assets.
Workday Inc ^(a)	214,497		18,593		(c)	Restricted Security. Please see Restricted Security Sub-Schedule for more
		$	774,798			information.
Telecommunications - 0.69%					(d)	Fair value of these investments is determined in good faith by the Manager
Arista Networks Inc ^(a)	4,291		364			under procedures established and periodically reviewed by the Board of
ARRIS International PLC ^(a)	5,486		152			Directors. At the end of the period, the fair value of these securities totaled
CommScope Holding Co Inc ^(a)	12,112		370			$48,475 or 0.69% of net assets.
Juniper Networks Inc	406,300		10,702
Motorola Solutions Inc	2,689		195
T-Mobile US Inc ^(a)	556,610		27,680
Verizon Communications Inc	176,212		8,476
Zayo Group Holdings Inc ^(a)	13,900		447
		$	48,386


Schedule of Investments
LargeCap Growth Fund I
October 31, 2016


Portfolio Summary (unaudited)
Sector		Percent
Consumer, Non-cyclical		26.58	%
Communications		23.05	%
Technology		17.60	%
Consumer, Cyclical		12.57	%
Industrial		9.93	%
Financial		7.35	%
Investment Companies		2.43	%
Basic Materials		0.30	%
Energy		0.07	%
Utilities		0.00	%
Other Assets and Liabilities		0.12	%
TOTAL NET ASSETS		100.00	%

Restricted Securities

Security Name	Trade Date				Cost			Value			Percent of Net Assets
Airbnb Inc - Series D	04/16/2014			$	4,948		$	12,760			0.18	%
Airbnb Inc - Series E	07/14/2015				2,733				3,083		0.04	%
Dropbox Inc	01/30/2014				4,854				3,336		0.05	%
Dropbox Inc	11/07/2014				1,012				474		0.01	%
Flipkart Online Services Pvt Ltd	03/19/2015				785				663		0.01	%
Flipkart Online Services Pvt Ltd Series A	03/19/2015				268				226		0.00	%
Flipkart Online Services Pvt Ltd Series C	03/19/2015				473				399		0.01	%
Flipkart Online Services Pvt Ltd Series E	03/19/2015				879				743		0.01	%
Flipkart Online Services Pvt Ltd Series G	12/17/2014				4,185				3,365		0.05	%
Magic Leap Inc	01/20/2016				3,888				3,888		0.06	%
Snapchat Inc	05/06/2016				4,509				4,509		0.06	%
Uber Technologies Inc	12/03/2015				4,821				4,821		0.07	%
Uber Technologies Inc	12/05/2014				6,973			10,208			0.14	%

Amounts in thousands


Futures Contracts

											Unrealized
Type	Long/Short	Contracts		Notional Value				Fair Value			Appreciation/(Depreciation)
S&P 500 Emini; December 2016	Long	1,749	$		187,770	$			185,403	$	(2,367	)
Total									$		(2,367	)

Amounts in thousands except contracts


Schedule of Investments
LargeCap Growth Fund II
October 31, 2016



COMMON STOCKS - 96.09%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.48%					Biotechnology (continued)
Clear Channel Outdoor Holdings Inc	843	$	5		Illumina Inc ^(a)	4,169	$	568
Interpublic Group of Cos Inc/The	2,923		65		Incyte Corp ^(a)	11,039		960
Omnicom Group Inc	31,043		2,478		Intercept Pharmaceuticals Inc ^(a)	109		13
		$	2,548		Intrexon Corp ^(a)	397		10
					Ionis Pharmaceuticals Inc ^(a)	802		21
Aerospace & Defense - 1.52%
					Juno Therapeutics Inc ^(a)	407		10
B/E Aerospace Inc	772		46
					Regeneron Pharmaceuticals Inc ^(a)	5,489		1,894
Boeing Co/The	21,761		3,100
					Seattle Genetics Inc ^(a)	637		33
General Dynamics Corp	501		75
					United Therapeutics Corp ^(a)	87		10
HEICO Corp	224		15
					Vertex Pharmaceuticals Inc ^(a)	1,660		126
HEICO Corp - Class A	361		22
Lockheed Martin Corp	17,076		4,207				$	19,715
Northrop Grumman Corp	831		190		Building Materials - 0.07%
Raytheon Co	1,127		154		Cree Inc ^(a)	272		6
Rockwell Collins Inc	922		78		Eagle Materials Inc	362		29
Spirit AeroSystems Holdings Inc	572		29		Fortune Brands Home & Security Inc	1,119		61
TransDigm Group Inc	349		95		Lennox International Inc	287		42
		$	8,011		Martin Marietta Materials Inc	401		74
Agriculture - 1.19%					Masco Corp	1,623		50
Altria Group Inc	74,257		4,910		Vulcan Materials Co	843		96
Philip Morris International Inc	12,361		1,192				$	358
Reynolds American Inc	2,519		139		Chemicals - 1.71%
		$	6,241		AdvanSix Inc ^(a)	1,955		31
Airlines - 0.56%					Air Products & Chemicals Inc	844		113
					Axalta Coating Systems Ltd ^(a)	1,191		30
Alaska Air Group Inc	744		54
Delta Air Lines Inc	64,019		2,674		Celanese Corp	159		12
JetBlue Airways Corp ^(a)	402		7		Dow Chemical Co/The	59,911		3,224
Southwest Airlines Co	5,030		201		EI du Pont de Nemours & Co	6,357		437
		$	2,936		International Flavors & Fragrances Inc	552		72
Apparel - 0.40%					LyondellBasell Industries NV	23,282		1,852
Carter's Inc	17,954		1,550		Monsanto Co	2,345		236
Michael Kors Holdings Ltd ^(a)	1,143		58		NewMarket Corp	53		21
NIKE Inc	6,597		331		PPG Industries Inc	1,322		123
Ralph Lauren Corp	76		7		Praxair Inc	1,250		146
Skechers U.S.A. Inc ^(a)	931		20		RPM International Inc	941		45
Under Armour Inc - Class C ^(a)	1,269		33		Sherwin-Williams Co/The	10,442		2,557
VF Corp	1,685		91		Valspar Corp/The	562		56
					Versum Materials Inc ^(a)	422		10
		$	2,090
					WR Grace & Co	306		20
Automobile Manufacturers - 0.03%
PACCAR Inc	911		50				$	8,985
Tesla Motors Inc ^(a)	580		115		Commercial Services - 2.40%
		$	165		AMERCO	31		10
					Aramark	849		32
Automobile Parts & Equipment - 0.49%
Adient plc ^(a)	97		4		Automatic Data Processing Inc	2,271		198
					Booz Allen Hamilton Holding Corp	937		29
BorgWarner Inc	286		10		CoreLogic Inc/United States ^(a)	537		23
Delphi Automotive PLC	1,347		88		CoStar Group Inc ^(a)	228		43
Lear Corp	461		57
					Ecolab Inc	33,891		3,869
Visteon Corp	314		22
WABCO Holdings Inc ^(a)	24,234		2,386		Equifax Inc	841		104
					Euronet Worldwide Inc ^(a)	404		32
		$	2,567		FleetCor Technologies Inc ^(a)	645		113
Banks - 0.02%					Gartner Inc ^(a)	598		51
Citizens Financial Group Inc	1,618		43		Global Payments Inc	1,080		78
First Republic Bank/CA	838		62		Herc Holdings Inc ^(a)	82		2
Signature Bank/New York NY ^(a)	209		25
					KAR Auction Services Inc	1,043		44
		$	130		Live Nation Entertainment Inc ^(a)	676		19
Beverages - 3.63%					LSC Communications Inc	163		4
Brown-Forman Corp - A Shares	395		19		MarketAxess Holdings Inc	259		39
Brown-Forman Corp - B Shares	1,264		58		Moody's Corp	752		76
Coca-Cola Co/The	168,824		7,158		Morningstar Inc	168		12
Constellation Brands Inc	818		137		Nielsen Holdings PLC	1,400		63
Dr Pepper Snapple Group Inc	52,834		4,638		PayPal Holdings Inc ^(a)	5,634		235
(a)
Monster Beverage Corp	688		99		Quanta Services Inc ^(a)	434		12
PepsiCo Inc	65,024		6,971		Robert Half International Inc	944		35
		$	19,080		RR Donnelley & Sons Co	436		8
Biotechnology - 3.75%					S&P Global Inc	1,918		234
Alexion Pharmaceuticals Inc ^(a)	1,464		191		Sabre Corp	1,606		41
Alnylam Pharmaceuticals Inc ^(a)	430		15
					Service Corp International/US	1,468		38
Amgen Inc	34,725		4,901		ServiceMaster Global Holdings Inc ^(a)	1,010		36
Biogen Inc ^(a)	10,781		3,021		Total System Services Inc	1,259		63
BioMarin Pharmaceutical Inc ^(a)	1,138		92		TransUnion ^(a)	518		16
Celgene Corp ^(a)	44,074		4,504		United Rentals Inc ^(a)	10,716		811
Charles River Laboratories International Inc	363		28		Vantiv Inc ^(a)	1,135		66
(a)					Verisk Analytics Inc ^(a)	74,410		6,068
Gilead Sciences Inc	45,074		3,318
See accompanying notes					328


Schedule of Investments
LargeCap Growth Fund II
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Commercial Services (continued)					Electronics - 1.77%
Western Union Co/The	3,668	$	74		Agilent Technologies Inc	37,477	$	1,633
WEX Inc ^(a)	311		34		Allegion PLC	719		46
		$	12,612		Amphenol Corp	1,490		98
Computers - 6.07%					Fitbit Inc ^(a)	793		11
Accenture PLC - Class A	3,101		360		Fortive Corp	25,646		1,309
Apple Inc	243,614		27,660		Gentex Corp	1,590		27
Cognizant Technology Solutions Corp ^(a)	3,011		155		Honeywell International Inc	47,790		5,242
Computer Sciences Corp	16,443		895		Johnson Controls International plc	974		39
CSRA Inc	1,303		33		Mettler-Toledo International Inc ^(a)	188		76
Dell Technologies Inc - VMware Inc ^(a)	12,640		621		National Instruments Corp	652		18
DST Systems Inc	281		27		PerkinElmer Inc	225		12
Fortinet Inc ^(a)	1,078		35		Trimble Inc ^(a)	1,534		42
Genpact Ltd ^(a)	1,323		30		Waters Corp ^(a)	5,275		734
Hewlett Packard Enterprise Co	51,472		1,157				$	9,287
International Business Machines Corp	5,382		827		Engineering & Construction - 0.01%
Leidos Holdings Inc	621		26		SBA Communications Corp ^(a)	526		60
NCR Corp ^(a)	1,010		35
Teradata Corp ^(a)	1,108		30		Entertainment - 0.03%
VeriFone Systems Inc ^(a)	805		12		Cinemark Holdings Inc	846		34
		$	31,903		Gaming and Leisure Properties Inc	1,381		45
Consumer Products - 0.33%					Regal Entertainment Group	436		9
Avery Dennison Corp	614		43		Vail Resorts Inc	281		45
Church & Dwight Co Inc	24,979		1,206				$	133
Clorox Co/The	1,246		149		Environmental Control - 0.05%
Kimberly-Clark Corp	2,563		293		Stericycle Inc ^(a)	520		42
Spectrum Brands Holdings Inc	187		25		Waste Management Inc	3,279		215
		$	1,716				$	257
Cosmetics & Personal Care - 0.75%					Food - 2.74%
Colgate-Palmolive Co	1,712		122		Blue Buffalo Pet Products Inc ^(a)	514		13
Coty Inc ^(a)	243		6		Campbell Soup Co	1,313		71
Estee Lauder Cos Inc/The	31,295		2,726		ConAgra Foods Inc	1,705		82
Procter & Gamble Co/The	12,656		1,099		General Mills Inc	69,075		4,282
		$	3,953		Hain Celestial Group Inc/The ^(a)	596		22
Distribution & Wholesale - 0.54%					Hershey Co/The	960		98
Fastenal Co	66,652		2,597		Hormel Foods Corp	40,183		1,547
HD Supply Holdings Inc ^(a)	1,452		48		Ingredion Inc	370		49
LKQ Corp ^(a)	2,159		70		Kellogg Co	1,137		85
Pool Corp	335		31		Kraft Heinz Co/The	377		34
Watsco Inc	211		29		Kroger Co/The	114,847		3,558
WW Grainger Inc	383		80		McCormick & Co Inc/MD	42,378		4,063
		$	2,855		Pilgrim's Pride Corp	188		4
					Post Holdings Inc ^(a)	294		22
Diversified Financial Services - 4.77%
Affiliated Managers Group Inc ^(a)	318		42		Sprouts Farmers Market Inc ^(a)	1,053		23
Alliance Data Systems Corp	415		85		Sysco Corp	5,014		241
					TreeHouse Foods Inc ^(a)	158		14
American Express Co	28,379		1,885
Ameriprise Financial Inc	362		32		Tyson Foods Inc	1,905		135
Artisan Partners Asset Management Inc	338		9		WhiteWave Foods Co/The ^(a)	1,161		63
CBOE Holdings Inc	47,321		2,991		Whole Foods Market Inc	454		13
Charles Schwab Corp/The	68,196		2,162				$	14,419
Credit Acceptance Corp ^(a)	62		11		Food Service - 0.00%
Discover Financial Services	1,445		81		US Foods Holding Corp ^(a)	386		9
Eaton Vance Corp	791		28
Federated Investors Inc	794		22		Hand & Machine Tools - 0.03%
Intercontinental Exchange Inc	280		76		Lincoln Electric Holdings Inc	345		23
Invesco Ltd	491		14		Snap-on Inc	324		50
Lazard Ltd	178		7		Stanley Black & Decker Inc	547		62
LPL Financial Holdings Inc	101		3				$	135
Mastercard Inc	66,588		7,126		Healthcare - Products - 3.81%
NorthStar Asset Management Group Inc	1,262		17		Abbott Laboratories	44,250		1,736
T Rowe Price Group Inc	1,270		81		ABIOMED Inc ^(a)	288		30
TD Ameritrade Holding Corp	1,532		52		Align Technology Inc ^(a)	531		46
Visa Inc	125,911		10,389		Baxter International Inc	1,185		56
		$	25,113		Becton Dickinson and Co	1,609		270
Electric - 0.00%					Bio-Techne Corp	286		30
Dominion Resources Inc/VA	247		19		Boston Scientific Corp ^(a)	10,328		227
					Bruker Corp	931		19
Electrical Components & Equipment - 0.04%					Cooper Cos Inc/The	5,332		938
Acuity Brands Inc	314		70		CR Bard Inc	7,850		1,702
AMETEK Inc	346		15		Danaher Corp	51,575		4,051
Emerson Electric Co	1,320		67		Edwards Lifesciences Corp ^(a)	28,848		2,747
Energizer Holdings Inc	187		9		Henry Schein Inc ^(a)	14,043		2,096
Hubbell Inc	290		30		Hill-Rom Holdings Inc	453		25
		$	191		Hologic Inc ^(a)	1,965		71

See accompanying notes					329


Schedule of Investments
LargeCap Growth Fund II
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Healthcare - Products (continued)					Internet (continued)
IDEXX Laboratories Inc ^(a)	628	$	67		F5 Networks Inc ^(a)	497	$	69
Intuitive Surgical Inc ^(a)	3,812		2,562		Facebook Inc ^(a)	47,990		6,286
Patterson Cos Inc	662		28		GoDaddy Inc ^(a)	457		16
ResMed Inc	1,000		60		Groupon Inc ^(a)	2,915		12
St Jude Medical Inc	1,648		128		Liberty Ventures ^(a)	217		9
Stryker Corp	1,676		193		LinkedIn Corp ^(a)	582		110
Teleflex Inc	87		13		Match Group Inc ^(a)	554		10
Thermo Fisher Scientific Inc	1,397		205		Netflix Inc ^(a)	2,031		254
Varian Medical Systems Inc ^(a)	28,700		2,604		Priceline Group Inc/The ^(a)	376		554
VWR Corp ^(a)	166		5		Symantec Corp	52,553		1,315
West Pharmaceutical Services Inc	550		42		TripAdvisor Inc ^(a)	24,171		1,559
Zimmer Biomet Holdings Inc	903		95		VeriSign Inc ^(a)	20,592		1,730
		$	20,046		Yelp Inc ^(a)	408		13
Healthcare - Services - 2.82%					Zillow Group Inc - A Shares ^(a)	261		9
Aetna Inc	1,110		119				$	57,110
Amsurg Corp ^(a)	243		15		Iron & Steel - 0.00%
Anthem Inc	782		95		Steel Dynamics Inc	429		12
Centene Corp ^(a)	877		55
Cigna Corp	417		50		Leisure Products & Services - 0.03%
DaVita Inc ^(a)	486		28		Brunswick Corp/DE	592		26
HCA Holdings Inc ^(a)	1,032		79		Harley-Davidson Inc	1,249		71
Humana Inc	1,154		198		Polaris Industries Inc	441		34
Laboratory Corp of America Holdings ^(a)	49,754		6,236		Vista Outdoor Inc ^(a)	134		5
MEDNAX Inc ^(a)	473		29				$	136
Quest Diagnostics Inc	9,318		759		Lodging - 0.30%
Quintiles IMS Holdings Inc ^(a)	421		30		Choice Hotels International Inc	265		13
Tenet Healthcare Corp ^(a)	630		12		Hilton Worldwide Holdings Inc	3,180		72
UnitedHealth Group Inc	49,967		7,062		Hyatt Hotels Corp ^(a)	123		6
Universal Health Services Inc	182		22		Las Vegas Sands Corp	22,563		1,306
WellCare Health Plans Inc ^(a)	320		36		Marriott International Inc/MD	1,200		83
		$	14,825		Wyndham Worldwide Corp	817		54
Home Builders - 0.04%					Wynn Resorts Ltd	491		46
CalAtlantic Group Inc	100		3				$	1,580
DR Horton Inc	1,411		41		Machinery - Construction & Mining - 0.35%
Lennar Corp - A Shares	741		31		Caterpillar Inc	22,161		1,850
Lennar Corp - B Shares	223		8
NVR Inc ^(a)	27		41		Machinery - Diversified - 0.57%
PulteGroup Inc	879		16		BWX Technologies Inc	792		31
Thor Industries Inc	407		32		Cognex Corp	666		34
Toll Brothers Inc ^(a)	574		16		Deere & Co	382		34
		$	188		IDEX Corp	537		46
Home Furnishings - 0.02%					Manitowoc Foodservice Inc ^(a)	581		9
Harman International Industries Inc	250		20		Middleby Corp/The ^(a)	416		47
Leggett & Platt Inc	1,001		46		Nordson Corp	443		44
Tempur Sealy International Inc ^(a)	405		22		Rockwell Automation Inc	736		88
Whirlpool Corp	83		12		Roper Technologies Inc	252		44
		$	100		Wabtec Corp/DE	33,598		2,598
Housewares - 0.04%					Xylem Inc/NY	750		36
Newell Brands Inc	2,345		112				$	3,011
Scotts Miracle-Gro Co/The	325		29		Media - 4.62%
Toro Co/The	850		41		AMC Networks Inc ^(a)	478		23
Tupperware Brands Corp	424		25		Cable One Inc	41		24
		$	207		CBS Corp	5,258		298
Insurance - 1.80%					Charter Communications Inc ^(a)	1,563		391
American International Group Inc	21,080		1,301		Comcast Corp - Class A	226,809		14,021
AmTrust Financial Services Inc	219		6		Discovery Communications Inc - A Shares ^(a)	1,088		28
Aon PLC	2,020		224		Discovery Communications Inc - C Shares ^(a)	1,673		42
Arthur J Gallagher & Co	908		44		DISH Network Corp ^(a)	1,216		71
Berkshire Hathaway Inc - Class B ^(a)	21,910		3,162		FactSet Research Systems Inc	281		43
Brown & Brown Inc	188		7		Scripps Networks Interactive Inc	647		42
Erie Indemnity Co	162		16		Sirius XM Holdings Inc	258,293		1,077
Lincoln National Corp	455		22		Starz ^(a)	696		22
Marsh & McLennan Cos Inc	73,400		4,652		Time Warner Inc	2,571		229
Progressive Corp/The	275		9		Twenty-First Century Fox Inc - A Shares	4,166		109
XL Group Ltd	730		25		Twenty-First Century Fox Inc - B Shares	2,762		73
		$	9,468		Viacom Inc - A Shares	203		9
Internet - 10.86%					Viacom Inc - B Shares	2,170		81
Alphabet Inc - A Shares ^(a)	34,500		27,942		Walt Disney Co/The	83,451		7,736
Alphabet Inc - C Shares ^(a)	1,476		1,158				$	24,319
Amazon.com Inc ^(a)	14,360		11,342		Metal Fabrication & Hardware - 0.00%
CDW Corp/DE	28,253		1,269		Valmont Industries Inc	156		20
eBay Inc ^(a)	74,930		2,136
Expedia Inc	10,194		1,317

See accompanying notes					330


Schedule of Investments
LargeCap Growth Fund II
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Mining - 0.00%					REITS (continued)
Royal Gold Inc	43	$	3		American Tower Corp	2,094	$	245
					Boston Properties Inc	487		59
Miscellaneous Manufacturers - 1.75%					Care Capital Properties Inc	150		4
3M Co	44,062		7,283		Crown Castle International Corp	1,486		135
AO Smith Corp	1,110		50		CubeSmart	916		24
Carlisle Cos Inc	188		20		CyrusOne Inc	445		20
Donaldson Co Inc	936		34		Digital Realty Trust Inc	728		68
General Electric Co	8,896		259		Empire State Realty Trust Inc	695		14
Illinois Tool Works Inc	2,419		275		Equinix Inc	343		122
Ingersoll-Rand PLC	1,555		105		Equity LifeStyle Properties Inc	583		44
Parker-Hannifin Corp	9,576		1,175		Essex Property Trust Inc	199		43
Textron Inc	672		27		Extra Space Storage Inc	859		63
		$	9,228		Federal Realty Investment Trust	507		74
Office & Business Equipment - 0.00%					Healthcare Trust of America Inc	712		22
Pitney Bowes Inc	1,446		26		Iron Mountain Inc	1,749		59
					Lamar Advertising Co	598		38
Oil & Gas - 0.41%					Life Storage Inc	251		20
Apache Corp	1,832		109		Omega Healthcare Investors Inc	583		19
Cabot Oil & Gas Corp	2,356		49		Outfront Media Inc	159		3
Concho Resources Inc ^(a)	14,636		1,858		Public Storage	1,180		252
Continental Resources Inc/OK ^(a)	366		18		Regency Centers Corp	164		12
Devon Energy Corp	446		17		Senior Housing Properties Trust	402		8
Diamondback Energy Inc ^(a)	183		17		Simon Property Group Inc	15,345		2,854
EOG Resources Inc	302		27		Tanger Factory Outlet Centers Inc	696		24
Murphy USA Inc ^(a)	239		16		Ventas Inc	1,342		91
Parsley Energy Inc ^(a)	227		7				$	4,323
Southwestern Energy Co ^(a)	3,618		38		Retail - 12.61%
		$	2,156		Advance Auto Parts Inc	482		67
Oil & Gas Services - 0.32%					AutoNation Inc ^(a)	227		10
Halliburton Co	36,797		1,693		AutoZone Inc ^(a)	8,058		5,980
					Bed Bath & Beyond Inc	252		10
Packaging & Containers - 0.07%					Brinker International Inc	499		25
Ball Corp	1,163		90		Burlington Stores Inc ^(a)	343		26
Bemis Co Inc	191		9		Cabela's Inc ^(a)	88		5
Berry Plastics Group Inc ^(a)	902		39		CarMax Inc ^(a)	1,315		66
Crown Holdings Inc ^(a)	969		53		Casey's General Stores Inc	290		33
Graphic Packaging Holding Co	1,837		23		Coach Inc	37,355		1,341
Owens-Illinois Inc ^(a)	1,246		24		Copart Inc ^(a)	758		40
Packaging Corp of America	685		57		Costco Wholesale Corp	43,972		6,503
Sealed Air Corp	1,368		62		CVS Health Corp	67,318		5,662
		$	357		Darden Restaurants Inc	877		57
Pharmaceuticals - 4.92%					Dick's Sporting Goods Inc	551		31
AbbVie Inc	56,593		3,156		Dollar General Corp	1,405		97
ACADIA Pharmaceuticals Inc ^(a)	637		15		Dollar Tree Inc ^(a)	110,514		8,350
Agios Pharmaceuticals Inc ^(a)	203		10		Domino's Pizza Inc	371		63
Akorn Inc ^(a)	670		16		Dunkin' Brands Group Inc	687		33
Alkermes PLC ^(a)	996		50		Foot Locker Inc	903		60
Allergan plc ^(a)	1,167		244		Gap Inc/The	330		9
AmerisourceBergen Corp	1,253		88		Genuine Parts Co	986		89
Bristol-Myers Squibb Co	68,904		3,508		Home Depot Inc/The	75,162		9,170
Cardinal Health Inc	37,442		2,572		L Brands Inc	205		15
					Liberty Interactive Corp QVC Group ^(a)	1,782		33
Eli Lilly & Co	4,849		358
Express Scripts Holding Co ^(a)	58,627		3,951		Lowe's Cos Inc	7,912		527
Herbalife Ltd ^(a)	555		34		lululemon athletica Inc ^(a)	688		39
Johnson & Johnson	59,856		6,943		McDonald's Corp	41,429		4,664
					Michaels Cos Inc/The ^(a)	737		17
McKesson Corp	16,968		2,158
Mead Johnson Nutrition Co	7,163		536		MSC Industrial Direct Co Inc	207		15
Mylan NV ^(a)	1,679		61		Nordstrom Inc	942		49
Neurocrine Biosciences Inc ^(a)	569		25		Nu Skin Enterprises Inc	180		11
OPKO Health Inc ^(a)	1,961		18		O'Reilly Automotive Inc ^(a)	20,840		5,511
					Panera Bread Co ^(a)	169		32
Pfizer Inc	3,976		126
Premier Inc ^(a)	205		7		Ross Stores Inc	29,428		1,841
Teva Pharmaceutical Industries Ltd ADR	14,098		603		Sally Beauty Holdings Inc ^(a)	1,137		29
VCA Inc ^(a)	20,045		1,232		Signet Jewelers Ltd	508		41
Zoetis Inc	3,560		170		Starbucks Corp	56,163		2,980
		$	25,881		Target Corp	314		22
Pipelines - 0.02%					TJX Cos Inc/The	122,022		8,999
ONEOK Inc	1,517		74		Tractor Supply Co	912		57
					Ulta Salon Cosmetics & Fragrance Inc ^(a)	406		99
Spectra Energy Corp	844		35
					Urban Outfitters Inc ^(a)	675		23
Williams Cos Inc/The	541		16
		$	125		Walgreens Boots Alliance Inc	876		72
					Wal-Mart Stores Inc	36,391		2,548
REITS - 0.82%
Alexandria Real Estate Equities Inc	57		6		Wendy's Co/The	1,105		12
					Williams-Sonoma Inc	16,929		782
See accompanying notes					331


Schedule of Investments
LargeCap Growth Fund II
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Retail (continued)					Telecommunications (continued)
Yum! Brands Inc	1,922	$	166		Verizon Communications Inc	179,364	$	8,627
		$	66,311		Zayo Group Holdings Inc ^(a)	1,081		35
Semiconductors - 2.79%							$	8,803
Applied Materials Inc	7,109		207		Textiles - 0.01%
ASML Holding NV - NY Reg Shares	17,972		1,898		Mohawk Industries Inc ^(a)	354		65
Broadcom Ltd	13,605		2,317
Intel Corp	162,094		5,652		Toys, Games & Hobbies - 0.03%
IPG Photonics Corp ^(a)	238		23		Hasbro Inc	823		69
KLA-Tencor Corp	1,120		84		Mattel Inc	2,393		75
Lam Research Corp	923		89				$	144
Linear Technology Corp	857		52		Transportation - 1.89%
Marvell Technology Group Ltd	70,949		924		CH Robinson Worldwide Inc	1,023		70
Maxim Integrated Products Inc	46,252		1,833		Expeditors International of Washington Inc	92,903		4,782
Microchip Technology Inc	1,503		91		FedEx Corp	16,663		2,905
NVIDIA Corp	4,228		301		JB Hunt Transport Services Inc	654		53
ON Semiconductor Corp ^(a)	637		7		Landstar System Inc	364		26
Qorvo Inc ^(a)	158		9		Old Dominion Freight Line Inc ^(a)	328		24
QUALCOMM Inc	2,882		198		Union Pacific Corp	19,262		1,698
Skyworks Solutions Inc	1,196		92		United Parcel Service Inc	3,443		371
Texas Instruments Inc	4,987		353				$	9,929
Xilinx Inc	10,310		525		TOTAL COMMON STOCKS		$	505,387
		$	14,655		INVESTMENT COMPANIES - 2.66%	Shares Held		Value(000	's)
Shipbuilding - 0.01%					Money Market Funds - 2.66%
Huntington Ingalls Industries Inc	304		49		Cash Account Trust - Government & Agency	342,781		343
					Portfolio - Government Cash Managed
Software - 10.13%					First American Government Obligations Fund	2,745,025		2,745
Activision Blizzard Inc	6,803		294		Morgan Stanley Institutional Liquidity Funds -	10,894,337		10,894
Adobe Systems Inc ^(a)	4,373		470
					Government Portfolio
Akamai Technologies Inc ^(a)	1,137		79
							$	13,982
ANSYS Inc ^(a)	224		20
					TOTAL INVESTMENT COMPANIES		$	13,982
Atlassian Corp PLC ^(a)	230		6
Autodesk Inc ^(a)	1,181		85		Total Investments		$	519,369
Black Knight Financial Services Inc ^(a)	303		12		Other Assets and Liabilities - 1.25%		$	6,557
					TOTAL NET ASSETS - 100.00%		$	525,926
Broadridge Financial Solutions Inc	41,793		2,703
Cadence Design Systems Inc ^(a)	2,267		58
CDK Global Inc	1,145		63		(a) Non-Income Producing Security
Cerner Corp ^(a)	35,376		2,072
Citrix Systems Inc ^(a)	73,787		6,257
Donnelley Financial Solutions Inc ^(a)	163		3
Dun & Bradstreet Corp/The	147		18		Portfolio Summary (unaudited)
Electronic Arts Inc ^(a)	28,158		2,211		Sector			Percent
Fidelity National Information Services Inc	918		68		Consumer, Non-cyclical			26.39	%
First Data Corp ^(a)	2,419		34		Technology			18.94	%
Fiserv Inc ^(a)	35,519		3,498		Communications			17.63	%
Guidewire Software Inc ^(a)	538		31		Consumer, Cyclical			15.13	%
Intuit Inc	1,219		133		Industrial			8.13	%
Jack Henry & Associates Inc	605		49		Financial			7.41	%
Manhattan Associates Inc ^(a)	560		28		Investment Companies			2.66	%
Microsoft Corp	357,913		21,446		Basic Materials			1.71	%
MSCI Inc	658		53		Energy			0.75	%
NetSuite Inc ^(a)	276		26		Utilities			0.00	%
Nuance Communications Inc ^(a)	1,594		22		Other Assets and Liabilities			1.25	%
Oracle Corp	201,327		7,735		TOTAL NET ASSETS			100.00	%
Paychex Inc	4,505		249
PTC Inc ^(a)	406		19
Rackspace Hosting Inc ^(a)	943		30
Red Hat Inc ^(a)	1,278		99
salesforce.com Inc ^(a)	33,612		2,527
Splunk Inc ^(a)	27,886		1,679
SS&C Technologies Holdings Inc	1,112		35
Synopsys Inc ^(a)	224		13
Tyler Technologies Inc ^(a)	235		38
Ultimate Software Group Inc/The ^(a)	195		41
Veeva Systems Inc ^(a)	742		29
VMware Inc ^(a)	12,434		977
Workday Inc ^(a)	793		69
		$	53,279
Telecommunications - 1.67%
Arista Networks Inc ^(a)	333		28
ARRIS International PLC ^(a)	421		12
CommScope Holding Co Inc ^(a)	942		29
Motorola Solutions Inc	200		14
T-Mobile US Inc ^(a)	1,167		58

See accompanying notes					332


Schedule of Investments
LargeCap S&P 500 Index Fund
October 31, 2016



COMMON STOCKS - 99.29%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.15%					Beverages - 2.23%
Interpublic Group of Cos Inc/The	107,229	$	2,401		Brown-Forman Corp - B Shares	48,808	$	2,253
Omnicom Group Inc	63,297		5,052		Coca-Cola Co/The	1,039,469		44,074
		$	7,453		Constellation Brands Inc	47,405		7,922
Aerospace & Defense - 2.14%					Dr Pepper Snapple Group Inc	49,614		4,356
Boeing Co/The	155,249		22,112		Molson Coors Brewing Co	49,293		5,117
					Monster Beverage Corp ^(a)	36,166		5,220
General Dynamics Corp	76,790		11,575
Harris Corp	33,241		2,965		PepsiCo Inc	385,117		41,285
L-3 Communications Holdings Inc	20,669		2,830				$	110,227
Lockheed Martin Corp	67,553		16,644		Biotechnology - 2.36%
Northrop Grumman Corp	47,786		10,943		Alexion Pharmaceuticals Inc ^(a)	60,008		7,831
Raytheon Co	78,967		10,788		Amgen Inc	200,260		28,269
Rockwell Collins Inc	34,769		2,932		Biogen Inc ^(a)	58,636		16,429
TransDigm Group Inc	13,398		3,650		Celgene Corp ^(a)	207,420		21,194
United Technologies Corp	208,283		21,287		Gilead Sciences Inc	353,139		26,001
		$	105,726		Illumina Inc ^(a)	39,230		5,341
					Regeneron Pharmaceuticals Inc ^(a)	20,195		6,968
Agriculture - 1.89%
					Vertex Pharmaceuticals Inc ^(a)	66,305		5,030
Altria Group Inc	522,850		34,571
Archer-Daniels-Midland Co	155,679		6,783				$	117,063
Philip Morris International Inc	415,134		40,035		Building Materials - 0.25%
Reynolds American Inc	221,534		12,202		Fortune Brands Home & Security Inc	41,184		2,250
		$	93,591		Martin Marietta Materials Inc	16,975		3,147
Airlines - 0.56%					Masco Corp	88,365		2,728
Alaska Air Group Inc	32,938		2,379		Vulcan Materials Co	35,609		4,031
American Airlines Group Inc	141,804		5,757				$	12,156
Delta Air Lines Inc	200,407		8,371		Chemicals - 1.89%
Southwest Airlines Co	165,973		6,647		Air Products & Chemicals Inc	57,948		7,731
United Continental Holdings Inc ^(a)	78,511		4,415		Albemarle Corp	30,078		2,513
		$	27,569		CF Industries Holdings Inc	62,385		1,498
Apparel - 0.65%					Dow Chemical Co/The	301,538		16,226
Hanesbrands Inc	101,098		2,598		Eastman Chemical Co	39,527		2,842
Michael Kors Holdings Ltd ^(a)	45,227		2,297		EI du Pont de Nemours & Co	233,968		16,095
NIKE Inc	360,822		18,106		FMC Corp	35,807		1,679
Ralph Lauren Corp	15,086		1,480		International Flavors & Fragrances Inc	21,298		2,785
Under Armour Inc - Class A ^(a)	49,074		1,526		LyondellBasell Industries NV	91,222		7,257
Under Armour Inc - Class C ^(a)	49,329		1,276		Monsanto Co	117,095		11,800
VF Corp	88,786		4,813		Mosaic Co/The	93,711		2,205
		$	32,096		PPG Industries Inc	71,256		6,636
Automobile Manufacturers - 0.59%					Praxair Inc	76,327		8,935
Ford Motor Co	1,044,276		12,260		Sherwin-Williams Co/The	21,470		5,257
General Motors Co	380,352		12,019				$	93,459
PACCAR Inc	93,801		5,151		Commercial Services - 1.44%
		$	29,430		Automatic Data Processing Inc	122,072		10,628
Automobile Parts & Equipment - 0.20%					Cintas Corp	22,866		2,439
Adient plc ^(a)	25,260		1,150		Ecolab Inc	70,227		8,018
BorgWarner Inc	53,897		1,932		Equifax Inc	31,933		3,959
Delphi Automotive PLC	72,991		4,749		Global Payments Inc	41,111		2,981
Goodyear Tire & Rubber Co/The	70,230		2,039		H&R Block Inc	58,629		1,347
		$	9,870		Moody's Corp	44,769		4,500
					Nielsen Holdings PLC	89,888		4,047
Banks - 6.98%					PayPal Holdings Inc ^(a)	300,362		12,513
Bank of America Corp	2,730,797		45,058		Quanta Services Inc ^(a)	40,426		1,162
Bank of New York Mellon Corp/The	285,708		12,363
					Robert Half International Inc	34,825		1,303
BB&T Corp	217,959		8,544
					S&P Global Inc	70,646		8,608
Capital One Financial Corp	135,425		10,027
					Total System Services Inc	44,274		2,208
Citigroup Inc	777,476		38,213		United Rentals Inc ^(a)	23,056		1,745
Citizens Financial Group Inc	139,010		3,662		Verisk Analytics Inc ^(a)	42,051		3,429
Comerica Inc	46,536		2,424
					Western Union Co/The	130,517		2,620
Fifth Third Bancorp	205,081		4,463
Goldman Sachs Group Inc/The	100,906		17,985				$	71,507
Huntington Bancshares Inc/OH	290,484		3,079		Computers - 5.16%
JPMorgan Chase & Co	966,563		66,944		Accenture PLC - Class A	166,591		19,364
KeyCorp	289,590		4,089		Apple Inc	1,441,943		163,718
					Cognizant Technology Solutions Corp ^(a)	162,417		8,340
M&T Bank Corp	41,951		5,149
Morgan Stanley	393,931		13,224		CSRA Inc	38,970		978
Northern Trust Corp	56,997		4,128		Hewlett Packard Enterprise Co	444,673		9,992
PNC Financial Services Group Inc/The	131,500		12,571		HP Inc	457,829		6,634
Regions Financial Corp	335,890		3,597		International Business Machines Corp	232,762		35,773
State Street Corp	98,105		6,888		NetApp Inc	74,571		2,531
SunTrust Banks Inc	134,177		6,069		Seagate Technology PLC	79,907		2,742
					Teradata Corp ^(a)	34,894		941
US Bancorp	430,524		19,270
Wells Fargo & Co	1,215,166		55,910		Western Digital Corp	76,069		4,445
Zions Bancorporation	54,887		1,768				$	255,458
		$	345,425		Consumer Products - 0.41%
					Avery Dennison Corp	23,778		1,659

See accompanying notes					334


Schedule of Investments
LargeCap S&P 500 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Consumer Products (continued)					Electronics (continued)
Church & Dwight Co Inc	68,933	$	3,327		Fortive Corp	80,454	$	4,107
Clorox Co/The	34,645		4,158		Garmin Ltd	30,831		1,491
Kimberly-Clark Corp	96,238		11,011		Honeywell International Inc	203,609		22,332
		$	20,155		Johnson Controls International plc	252,598		10,185
Cosmetics & Personal Care - 1.76%					Mettler-Toledo International Inc ^(a)	7,088		2,864
Colgate-Palmolive Co	238,562		17,024		PerkinElmer Inc	29,275		1,490
Coty Inc ^(a)	126,098		2,899		TE Connectivity Ltd	95,144		5,982
Estee Lauder Cos Inc/The	59,124		5,151		Waters Corp ^(a)	21,561		3,000
Procter & Gamble Co/The	714,155		61,989				$	69,841
		$	87,063		Energy - Alternate Sources - 0.02%
Distribution & Wholesale - 0.18%					First Solar Inc ^(a)	20,543		832
Fastenal Co	77,327		3,014
LKQ Corp ^(a)	82,181		2,653		Engineering & Construction - 0.07%
WW Grainger Inc	14,875		3,096		Fluor Corp	37,262		1,937
		$	8,763		Jacobs Engineering Group Inc ^(a)	32,494		1,676
Diversified Financial Services - 3.22%							$	3,613
Affiliated Managers Group Inc ^(a)	14,416		1,913		Environmental Control - 0.25%
Alliance Data Systems Corp	15,662		3,202		Republic Services Inc	62,386		3,283
American Express Co	207,650		13,792		Stericycle Inc ^(a)	22,757		1,823
Ameriprise Financial Inc	43,196		3,818		Waste Management Inc	108,887		7,149
BlackRock Inc	32,649		11,141				$	12,255
Charles Schwab Corp/The	322,171		10,213		Food - 1.86%
CME Group Inc	90,676		9,077		Campbell Soup Co	52,034		2,828
Discover Financial Services	108,010		6,084		ConAgra Foods Inc	111,531		5,374
E*TRADE Financial Corp ^(a)	73,237		2,062		General Mills Inc	159,762		9,902
Franklin Resources Inc	94,043		3,166		Hershey Co/The	37,561		3,849
Intercontinental Exchange Inc	31,880		8,620		Hormel Foods Corp	72,312		2,784
Invesco Ltd	109,693		3,081		JM Smucker Co/The	31,153		4,091
Legg Mason Inc	24,680		709		Kellogg Co	67,484		5,070
Mastercard Inc	256,609		27,462		Kraft Heinz Co/The	159,440		14,182
Nasdaq Inc	30,550		1,954		Kroger Co/The	253,949		7,867
Navient Corp	84,837		1,084		McCormick & Co Inc/MD	30,784		2,951
Synchrony Financial	211,999		6,061		Mondelez International Inc	416,260		18,707
T Rowe Price Group Inc	66,512		4,258		Sysco Corp	136,668		6,576
Visa Inc	504,808		41,652		Tyson Foods Inc	79,596		5,639
		$	159,349		Whole Foods Market Inc	85,311		2,413
Electric - 3.04%							$	92,233
AES Corp/VA	176,371		2,076		Forest Products & Paper - 0.10%
Alliant Energy Corp	60,834		2,315		International Paper Co	110,037		4,955
Ameren Corp	64,928		3,243
American Electric Power Co Inc	131,580		8,532		Gas - 0.24%
CMS Energy Corp	74,667		3,147		CenterPoint Energy Inc	115,250		2,628
Consolidated Edison Inc	81,461		6,154		NiSource Inc	86,216		2,005
Dominion Resources Inc/VA	167,453		12,592		Sempra Energy	66,846		7,159
DTE Energy Co	48,016		4,610				$	11,792
Duke Energy Corp	184,358		14,752		Hand & Machine Tools - 0.14%
Edison International	87,186		6,406		Snap-on Inc	15,544		2,395
Entergy Corp	47,895		3,529		Stanley Black & Decker Inc	40,253		4,583
Eversource Energy	84,884		4,674				$	6,978
Exelon Corp	246,959		8,414		Healthcare - Products - 3.04%
FirstEnergy Corp	113,782		3,902		Abbott Laboratories	393,369		15,436
NextEra Energy Inc	124,988		15,998		Baxter International Inc	130,989		6,234
NRG Energy Inc	84,368		897		Becton Dickinson and Co	56,978		9,567
PG&E Corp	133,399		8,287		Boston Scientific Corp ^(a)	364,133		8,011
Pinnacle West Capital Corp	29,750		2,265		Cooper Cos Inc/The	13,030		2,294
PPL Corp	181,457		6,231		CR Bard Inc	19,656		4,259
Public Service Enterprise Group Inc	135,383		5,697		Danaher Corp	162,612		12,773
SCANA Corp	38,244		2,806		DENTSPLY SIRONA Inc	62,353		3,590
Southern Co/The	261,901		13,506		Edwards Lifesciences Corp ^(a)	56,966		5,424
WEC Energy Group Inc	84,459		5,044		Henry Schein Inc ^(a)	21,888		3,266
Xcel Energy Inc	135,927		5,648		Hologic Inc ^(a)	74,238		2,673
		$	150,725		Intuitive Surgical Inc ^(a)	10,300		6,923
Electrical Components & Equipment - 0.28%					Medtronic PLC	369,805		30,331
Acuity Brands Inc	11,744		2,626		Patterson Cos Inc	22,297		952
AMETEK Inc	62,195		2,743		St Jude Medical Inc	76,246		5,935
Emerson Electric Co	172,210		8,727		Stryker Corp	83,135		9,590
		$	14,096		Thermo Fisher Scientific Inc	105,504		15,512
Electronics - 1.41%					Varian Medical Systems Inc ^(a)	24,988		2,267
Agilent Technologies Inc	87,109		3,795		Zimmer Biomet Holdings Inc	53,523		5,641
Allegion PLC	25,662		1,638				$	150,678
Amphenol Corp	82,614		5,447		Healthcare - Services - 1.83%
Corning Inc	277,467		6,301		Aetna Inc	93,873		10,077
FLIR Systems Inc	36,736		1,209		Anthem Inc	70,424		8,582

See accompanying notes					335


Schedule of Investments
LargeCap S&P 500 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Healthcare - Services (continued)					Lodging - 0.20%
Centene Corp ^(a)	45,689	$	2,855		Marriott International Inc/MD	85,992	$	5,907
Cigna Corp	68,657		8,159		Wyndham Worldwide Corp	29,402		1,936
DaVita Inc ^(a)	44,293		2,597		Wynn Resorts Ltd	21,246		2,009
HCA Holdings Inc ^(a)	79,033		6,048				$	9,852
Humana Inc	39,890		6,842		Machinery - Construction & Mining - 0.26%
Laboratory Corp of America Holdings ^(a)	27,375		3,431		Caterpillar Inc	156,339		13,048
Quest Diagnostics Inc	37,200		3,030
UnitedHealth Group Inc	254,859		36,019		Machinery - Diversified - 0.50%
Universal Health Services Inc	24,109		2,910		Cummins Inc	41,517		5,307
		$	90,550		Deere & Co	77,408		6,835
Holding Companies - Diversified - 0.03%					Flowserve Corp	34,889		1,478
Leucadia National Corp	86,796		1,620		Rockwell Automation Inc	34,627		4,145
					Roper Technologies Inc	27,118		4,700
Home Builders - 0.13%					Xylem Inc/NY	47,948		2,317
DR Horton Inc	90,657		2,614				$	24,782
Lennar Corp - A Shares	50,269		2,096		Media - 2.77%
PulteGroup Inc	82,757		1,539		CBS Corp	108,879		6,165
		$	6,249		Charter Communications Inc ^(a)	58,000		14,494
Home Furnishings - 0.12%					Comcast Corp - Class A	642,875		39,743
Harman International Industries Inc	18,673		1,488		Discovery Communications Inc - A Shares ^(a)	40,378		1,054
Leggett & Platt Inc	35,770		1,641		Discovery Communications Inc - C Shares ^(a)	60,002		1,507
Whirlpool Corp	20,188		3,025		News Corp - A Shares	101,831		1,234
		$	6,154		News Corp - B Shares	32,052		397
Housewares - 0.13%					Scripps Networks Interactive Inc	25,474		1,639
Newell Brands Inc	129,036		6,196		TEGNA Inc	57,352		1,125
					Time Warner Inc	208,149		18,523
Insurance - 4.08%					Twenty-First Century Fox Inc - A Shares	284,727		7,480
Aflac Inc	109,601		7,548		Twenty-First Century Fox Inc - B Shares	130,347		3,440
Allstate Corp/The	99,402		6,749		Viacom Inc - B Shares	92,917		3,490
American International Group Inc	272,182		16,794		Walt Disney Co/The	395,654		36,673
Aon PLC	71,074		7,877				$	136,964
Arthur J Gallagher & Co	47,373		2,285		Mining - 0.25%
Assurant Inc	16,110		1,297		Alcoa Corp	117,331		3,370
Berkshire Hathaway Inc - Class B ^(a)	508,078		73,316		Freeport-McMoRan Inc ^(a)	327,005		3,656
Chubb Ltd	124,454		15,806		Newmont Mining Corp	141,985		5,259
Cincinnati Financial Corp	40,076		2,836				$	12,285
Hartford Financial Services Group Inc/The	103,284		4,556		Miscellaneous Manufacturers - 2.65%
Lincoln National Corp	62,295		3,058		3M Co	161,737		26,735
Loews Corp	73,971		3,183		Dover Corp	41,535		2,778
Marsh & McLennan Cos Inc	138,679		8,791		Eaton Corp PLC	121,677		7,759
MetLife Inc	294,057		13,809		General Electric Co	2,398,019		69,783
Progressive Corp/The	155,720		4,907		Illinois Tool Works Inc	85,488		9,709
Prudential Financial Inc	116,940		9,915		Ingersoll-Rand PLC	69,040		4,646
Torchmark Corp	29,806		1,890		Parker-Hannifin Corp	35,831		4,398
Travelers Cos Inc/The	77,143		8,345		Pentair PLC	44,585		2,458
Unum Group	62,790		2,223		Textron Inc	72,108		2,890
Willis Towers Watson PLC	34,725		4,372				$	131,156
XL Group Ltd	73,582		2,553		Office & Business Equipment - 0.06%
		$	202,110		Pitney Bowes Inc	49,663		886
Internet - 7.21%					Xerox Corp	227,773		2,225
Alphabet Inc - A Shares ^(a)	78,900		63,901				$	3,111
Alphabet Inc - C Shares ^(a)	79,075		62,038
					Oil & Gas - 5.58%
Amazon.com Inc ^(a)	105,295		83,164
					Anadarko Petroleum Corp	145,938		8,675
eBay Inc ^(a)	280,975		8,011		Apache Corp	101,533		6,039
Expedia Inc	32,241		4,167		Cabot Oil & Gas Corp	124,473		2,599
F5 Networks Inc ^(a)	17,716		2,449		Chesapeake Energy Corp ^(a)	174,646		962
Facebook Inc ^(a)	621,622		81,426		Chevron Corp	504,831		52,881
Netflix Inc ^(a)	114,727		14,326
					Cimarex Energy Co	25,418		3,282
Priceline Group Inc/The ^(a)	13,283		19,582		Concho Resources Inc ^(a)	38,036		4,828
Symantec Corp	164,731		4,123		ConocoPhillips	331,423		14,400
TripAdvisor Inc ^(a)	30,575		1,971
					Devon Energy Corp	140,114		5,309
VeriSign Inc ^(a)	24,856		2,088
					EOG Resources Inc	147,351		13,324
Yahoo! Inc ^(a)	234,320		9,736		EQT Corp	46,226		3,051
		$	356,982		Exxon Mobil Corp	1,109,640		92,455
Iron & Steel - 0.08%					Helmerich & Payne Inc	28,918		1,825
Nucor Corp	85,191		4,162		Hess Corp	72,030		3,455
					Marathon Oil Corp	226,725		2,988
Leisure Products & Services - 0.24%					Marathon Petroleum Corp	141,495		6,168
Carnival Corp	115,843		5,688		Murphy Oil Corp	43,315		1,121
Harley-Davidson Inc	47,845		2,728		Newfield Exploration Co ^(a)	53,146		2,157
Royal Caribbean Cruises Ltd	44,931		3,454		Noble Energy Inc	114,979		3,963
		$	11,870		Occidental Petroleum Corp	204,426		14,905
					Phillips 66	118,926		9,651

See accompanying notes					336


Schedule of Investments
LargeCap S&P 500 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Oil & Gas (continued)					REITS (continued)
Pioneer Natural Resources Co	45,386	$	8,125		Vornado Realty Trust	45,982	$	4,266
Range Resources Corp	50,305		1,700		Welltower Inc	95,777		6,564
Southwestern Energy Co ^(a)	132,048		1,372		Weyerhaeuser Co	200,360		5,997
Tesoro Corp	31,787		2,701				$	142,829
Transocean Ltd ^(a)	91,911		883		Retail - 6.12%
Valero Energy Corp	123,454		7,314		Advance Auto Parts Inc	19,706		2,760
		$	276,133		AutoNation Inc ^(a)	17,757		779
Oil & Gas Services - 1.04%					AutoZone Inc ^(a)	7,822		5,805
Baker Hughes Inc	114,506		6,344		Bed Bath & Beyond Inc	41,309		1,670
FMC Technologies Inc ^(a)	60,377		1,948		Best Buy Co Inc	73,865		2,874
Halliburton Co	230,430		10,600		CarMax Inc ^(a)	51,238		2,559
National Oilwell Varco Inc	101,053		3,244		Chipotle Mexican Grill Inc ^(a)	7,791		2,811
Schlumberger Ltd	372,148		29,113		Coach Inc	74,644		2,679
		$	51,249		Costco Wholesale Corp	117,226		17,334
Packaging & Containers - 0.20%					CVS Health Corp	285,318		23,995
Ball Corp	46,623		3,593		Darden Restaurants Inc	33,775		2,188
Owens-Illinois Inc ^(a)	43,373		837		Dollar General Corp	69,362		4,792
Sealed Air Corp	52,637		2,402		Dollar Tree Inc ^(a)	63,093		4,767
WestRock Co	67,299		3,109		Foot Locker Inc	36,208		2,418
		$	9,941		Gap Inc/The	58,647		1,618
Pharmaceuticals - 6.40%					Genuine Parts Co	39,849		3,610
AbbVie Inc	435,796		24,309		Home Depot Inc/The	330,638		40,341
Allergan plc ^(a)	105,956		22,138		Kohl's Corp	48,058		2,103
AmerisourceBergen Corp	48,381		3,402		L Brands Inc	64,281		4,641
Bristol-Myers Squibb Co	447,120		22,763		Lowe's Cos Inc	234,058		15,600
Cardinal Health Inc	85,254		5,856		Macy's Inc	82,545		3,012
Eli Lilly & Co	259,941		19,194		McDonald's Corp	228,359		25,706
Endo International PLC ^(a)	53,054		995		Nordstrom Inc	31,096		1,617
Express Scripts Holding Co ^(a)	168,646		11,367		O'Reilly Automotive Inc ^(a)	25,402		6,717
Johnson & Johnson	732,118		84,918		PVH Corp	21,469		2,297
Mallinckrodt PLC ^(a)	28,823		1,708		Ross Stores Inc	106,124		6,637
McKesson Corp	60,397		7,681		Signet Jewelers Ltd	20,229		1,644
Mead Johnson Nutrition Co	49,414		3,695		Staples Inc	174,052		1,288
Merck & Co Inc	739,967		43,451		Starbucks Corp	392,461		20,828
Mylan NV ^(a)	123,101		4,493		Target Corp	153,833		10,573
Perrigo Co PLC	38,341		3,190		Tiffany & Co	28,742		2,110
Pfizer Inc ^(b)	1,623,164		51,470		TJX Cos Inc/The	175,717		12,959
Zoetis Inc	132,473		6,332		Tractor Supply Co	35,768		2,240
					Ulta Salon Cosmetics & Fragrance Inc ^(a)	15,688		3,818
		$	316,962
					Urban Outfitters Inc ^(a)	23,822		797
Pipelines - 0.53%
Kinder Morgan Inc/DE	513,736		10,496		Walgreens Boots Alliance Inc	228,805		18,929
ONEOK Inc	56,310		2,727		Wal-Mart Stores Inc	405,599		28,400
Spectra Energy Corp	187,614		7,844		Yum! Brands Inc	93,235		8,044
Williams Cos Inc/The	182,775		5,337				$	302,960
		$	26,404		Savings & Loans - 0.03%
Real Estate - 0.04%					People's United Financial Inc	83,212		1,351
CBRE Group Inc ^(a)	79,931		2,059
					Semiconductors - 3.25%
REITS - 2.89%					Analog Devices Inc	82,279		5,274
American Tower Corp	113,860		13,343		Applied Materials Inc	289,246		8,411
Apartment Investment & Management Co	41,909		1,847		Broadcom Ltd	105,840		18,022
AvalonBay Communities Inc	36,745		6,290		Intel Corp	1,266,012		44,146
Boston Properties Inc	41,128		4,955		KLA-Tencor Corp	41,744		3,135
Crown Castle International Corp	90,331		8,219		Lam Research Corp	42,885		4,154
Digital Realty Trust Inc	39,300		3,672		Linear Technology Corp	64,149		3,853
Equinix Inc	19,019		6,795		Microchip Technology Inc	57,610		3,488
					Micron Technology Inc ^(a)	277,872		4,768
Equity Residential	97,822		6,041
Essex Property Trust Inc	17,526		3,752		NVIDIA Corp	143,165		10,188
					Qorvo Inc ^(a)	34,224		1,905
Extra Space Storage Inc	33,661		2,462
Federal Realty Investment Trust	18,973		2,755		QUALCOMM Inc	394,347		27,100
General Growth Properties Inc	156,258		3,899		Skyworks Solutions Inc	50,173		3,860
HCP Inc	125,124		4,285		Texas Instruments Inc	268,458		19,020
Host Hotels & Resorts Inc	198,687		3,076		Xilinx Inc	67,831		3,451
Iron Mountain Inc	65,514		2,210				$	160,775
Kimco Realty Corp	112,405		2,991		Software - 4.94%
Macerich Co/The	32,284		2,285		Activision Blizzard Inc	182,542		7,880
					Adobe Systems Inc ^(a)	133,342		14,336
Prologis Inc	141,011		7,355
Public Storage	39,905		8,528		Akamai Technologies Inc ^(a)	46,756		3,248
					Autodesk Inc ^(a)	52,253		3,777
Realty Income Corp	69,192		4,099
Simon Property Group Inc	84,086		15,637		CA Inc	84,082		2,585
SL Green Realty Corp	26,845		2,637		Cerner Corp ^(a)	80,429		4,711
					Citrix Systems Inc ^(a)	41,672		3,534
UDR Inc	71,464		2,499
Ventas Inc	94,021		6,370		Dun & Bradstreet Corp/The	9,715		1,213

See accompanying notes					337


Schedule of Investments
LargeCap S&P 500 Index Fund
October 31, 2016



COMMON STOCKS (continued)		Shares Held	Value (000's)		Portfolio Summary (unaudited)
Software (continued)					Sector	Percent
Electronic Arts Inc ^(a)		80,484	$	6,320	Consumer, Non-cyclical	23.32	%
Fidelity National Information Services Inc		87,725		6,485	Financial	17.24	%
Fiserv Inc ^(a)		58,822		5,793	Communications	13.56	%
Intuit Inc		65,572		7,130	Technology	13.31	%
Microsoft Corp		2,085,271		124,949	Industrial	9.70	%
Oracle Corp		805,364		30,942	Consumer, Cyclical	9.29	%
Paychex Inc		85,865		4,740	Energy	7.17	%
Red Hat Inc ^(a)		48,461		3,753	Utilities	3.35	%
salesforce.com Inc ^(a)		172,307		12,950	Basic Materials	2.32	%
			$	244,346	Investment Companies	0.69	%
Telecommunications - 3.43%					Diversified	0.03	%
AT&T Inc		1,646,270		60,566	Other Assets and Liabilities	0.02	%
CenturyLink Inc		146,101		3,884	TOTAL NET ASSETS	100.00	%
Cisco Systems Inc		1,345,947		41,294
Frontier Communications Corp		313,912		1,262
Juniper Networks Inc		102,480		2,699
Level 3 Communications Inc ^(a)		77,928		4,376
Motorola Solutions Inc		44,615		3,238
Verizon Communications Inc		1,090,815		52,468
			$	169,787
Textiles - 0.06%
Mohawk Industries Inc ^(a)		16,866		3,108

Toys, Games & Hobbies - 0.11%
Hasbro Inc		30,203		2,519
Mattel Inc		91,149		2,874
			$	5,393
Transportation - 1.55%
CH Robinson Worldwide Inc		38,188		2,601
CSX Corp		253,146		7,724
Expeditors International of Washington Inc		48,449		2,494
FedEx Corp		65,369		11,395
JB Hunt Transport Services Inc		23,519		1,919
Kansas City Southern		28,896		2,536
Norfolk Southern Corp		78,553		7,305
Ryder System Inc		14,310		993
Union Pacific Corp		222,887		19,654
United Parcel Service Inc		184,983		19,934
			$	76,555
Water - 0.07%
American Water Works Co Inc		47,606		3,525

TOTAL COMMON STOCKS			$	4,914,826
INVESTMENT COMPANIES - 0.69%		Shares Held	Value (000's)
Exchange Traded Funds - 0.15%
iShares Core S&P 500 ETF		33,369		7,131

Money Market Funds - 0.54%
Morgan Stanley Institutional Liquidity Funds -		26,845,155		26,845
Government Portfolio

TOTAL INVESTMENT COMPANIES			$	33,976
Total Investments			$	4,948,802
Other Assets and Liabilities - 0.02%			$	1,005
TOTAL NET ASSETS - 100.00%			$	4,949,807


(a)	Non-Income Producing Security
(b)	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 $2,622 or 0.05% of net assets.


Schedule of Investments
LargeCap Value Fund
October 31, 2016



COMMON STOCKS - 99.54%	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Aerospace & Defense - 1.54%					Insurance - 10.48%
General Dynamics Corp	81,400	$	12,270		Aflac Inc		714,400	$	49,201
United Technologies Corp	234,000		23,915		AmTrust Financial Services Inc		282,000		7,442
		$	36,185		Assured Guaranty Ltd		290,000		8,668
					Berkshire Hathaway Inc - Class B ^(a)		435,870		62,896
Agriculture - 1.00%
Altria Group Inc	353,800		23,393		Everest Re Group Ltd		141,600		28,819
					Travelers Cos Inc/The		497,700		53,841
Banks - 14.40%					Unum Group		978,200		34,628
Bank of America Corp	2,806,000		46,299					$	245,495
Citigroup Inc	74,000		3,637		Machinery - Diversified - 0.89%
Commerce Bancshares Inc/MO	114,700		5,714		BWX Technologies Inc		531,600		20,849
Fifth Third Bancorp	530,900		11,553
JPMorgan Chase & Co	1,725,000		119,474		Miscellaneous Manufacturers - 1.90%
Morgan Stanley	1,251,000		41,996		General Electric Co		484,000		14,084
State Street Corp	189,300		13,291		Parker-Hannifin Corp		248,600		30,516
SunTrust Banks Inc	1,571,000		71,056					$	44,600
Wells Fargo & Co	531,000		24,431		Oil & Gas - 10.86%
		$	337,451		Antero Resources Corp ^(a)		498,100		13,185
Biotechnology - 0.88%					Chevron Corp		98,300		10,297
Amgen Inc	145,500		20,539		EOG Resources Inc		300,200		27,144
					Exxon Mobil Corp		1,612,143		134,324
Building Materials - 1.98%					Murphy Oil Corp		658,000		17,022
Owens Corning	950,274		46,354		Nabors Industries Ltd		599,000		7,128
					Newfield Exploration Co ^(a)		364,200		14,783
Chemicals - 4.30%					Tesoro Corp		84,100		7,146
Cabot Corp	385,300		20,089		Valero Energy Corp		393,800		23,329
Dow Chemical Co/The	1,501,000		80,769					$	254,358
		$	100,858		Pharmaceuticals - 7.96%
Commercial Services - 1.06%					Cardinal Health Inc		322,600		22,159
CoreLogic Inc/United States ^(a)	500,600		21,305		Johnson & Johnson		436,653		50,647
MarketAxess Holdings Inc	23,100		3,483		Merck & Co Inc		1,037,000		60,893
		$	24,788		Pfizer Inc		1,666,400		52,842
Computers - 1.44%								$	186,541
Amdocs Ltd	351,900		20,569		REITS- 4.25	%
HP Inc	905,400		13,119		Corporate Office Properties Trust		633,428		16,906
		$	33,688		Duke Realty Corp		1,691,400		44,230
Cosmetics & Personal Care - 1.19%					Liberty Property Trust		336,700		13,613
Procter & Gamble Co/The	322,100		27,958		Realty Income Corp		183,700		10,882
					Sun Communities Inc		182,100		14,009
Electric - 2.99%								$	99,640
Exelon Corp	563,000		19,181		Retail - 9.97%
MDU Resources Group Inc	1,023,000		26,813		Burlington Stores Inc ^(a)		166,600		12,485
Xcel Energy Inc	577,100		23,979		CVS Health Corp		432,000		36,331
		$	69,973		Darden Restaurants Inc		222,900		14,442
Engineering & Construction - 1.15%					Kohl's Corp		303,300		13,269
Fluor Corp	517,000		26,879		PVH Corp		136,400		14,592
					Target Corp		474,400		32,606
					Urban Outfitters Inc ^(a)		175,000		5,854
Entertainment - 0.89%
International Game Technology PLC	723,400		20,776		Wal-Mart Stores Inc		1,245,000		87,175
					World Fuel Services Corp		416,700		16,772
Environmental Control - 0.78%								$	233,526
Waste Management Inc	279,300		18,339		Semiconductors - 3.13%
					Intel Corp		2,103,000		73,332
Food - 2.33%
Ingredion Inc	148,000		19,413		Software - 0.60%
JM Smucker Co/The	61,250		8,043		VMware Inc ^(a)		179,050		14,073
Tyson Foods Inc ^(b)	384,100		27,213
		$	54,669		Telecommunications - 4.80%
Gas - 2.23%					AT&T Inc		767,000		28,218
CenterPoint Energy Inc	2,293,000		52,280		Cisco Systems Inc		2,745,000		84,217
								$	112,435
Hand & Machine Tools - 1.90%					TOTAL COMMON STOCKS			$	2,332,322
Stanley Black & Decker Inc	390,600		44,466		INVESTMENT COMPANIES - 0.89%		Shares Held		Value(000	's)
					Money Market Funds - 0.89%
Healthcare - Products - 1.13%					Goldman Sachs Financial Square Funds -		20,819,998		20,820
Baxter International Inc	557,800		26,546		Government Fund

Healthcare - Services - 3.51%					TOTAL INVESTMENT COMPANIES			$	20,820
Aetna Inc	162,800		17,477		Total Investments			$	2,353,142
Anthem Inc	349,764		42,622		Other Assets and Liabilities - (0.43)%			$	(9,967	)
UnitedHealth Group Inc	106,900		15,108		TOTAL NET ASSETS - 100.00%			$	2,343,175
WellCare Health Plans Inc ^(a)	62,760		7,124
		$	82,331
					(a) Non-Income Producing Security
See accompanying notes					339


Schedule of Investments
LargeCap Value Fund III
October 31, 2016



COMMON STOCKS - 96.74%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.00%					Banks (continued)
Clear Channel Outdoor Holdings Inc	3,053	$	18		SunTrust Banks Inc	25,832	$	1,168
					TCF Financial Corp	6,331		91
Aerospace & Defense - 4.48%					US Bancorp	35,195		1,575
Boeing Co/The	69,600		9,913		Wells Fargo & Co	978,240		45,009
General Dynamics Corp	183,022		27,588		Zions Bancorporation	6,517		210
Harris Corp	3,940		352				$	229,612
L-3 Communications Holdings Inc	2,397		328		Beverages - 1.44%
Raytheon Co	101,970		13,930		Brown-Forman Corp - A Shares	269		13
Spirit AeroSystems Holdings Inc	2,190		110		Brown-Forman Corp - B Shares	374		17
United Technologies Corp	250,023		25,553		Coca-Cola Co/The	21,284		902
		$	77,774		Dr Pepper Snapple Group Inc	127,018		11,151
Agriculture - 3.10%					Molson Coors Brewing Co	3,733		388
Altria Group Inc	379,347		25,082		PepsiCo Inc	116,541		12,493
Archer-Daniels-Midland Co	12,451		543				$	24,964
Bunge Ltd	4,231		262		Biotechnology - 0.01%
Philip Morris International Inc	285,430		27,527		Alnylam Pharmaceuticals Inc ^(a)	305		11
Reynolds American Inc	6,897		380		Bio-Rad Laboratories Inc ^(a)	668		105
		$	53,794		Juno Therapeutics Inc ^(a)	191		5
Airlines - 0.10%					United Therapeutics Corp ^(a)	914		110
Alaska Air Group Inc	859		62				$	231
American Airlines Group Inc	11,442		464		Building Materials - 0.03%
Copa Holdings SA	1,159		107		Cree Inc ^(a)	1,887		42
Delta Air Lines Inc	7,524		314		Lennox International Inc	224		33
JetBlue Airways Corp ^(a)	9,613		168		Martin Marietta Materials Inc	221		41
United Continental Holdings Inc ^(a)	11,180		629		Masco Corp	4,094		126
		$	1,744		Owens Corning	3,778		184
Apparel - 0.54%					USG Corp ^(a)	2,837		72
Ralph Lauren Corp	1,718		168		Vulcan Materials Co	210		24
VF Corp	169,300		9,178				$	522
		$	9,346		Chemicals - 2.34%
Automobile Manufacturers - 0.20%					Air Products & Chemicals Inc	194,182		25,908
Ford Motor Co	120,825		1,419		Albemarle Corp	3,330		278
General Motors Co	44,263		1,399		Ashland Global Holdings Inc	1,902		212
PACCAR Inc	11,515		632		Cabot Corp	2,037		106
		$	3,450		Celanese Corp	4,097		299
Automobile Parts & Equipment - 0.18%					Dow Chemical Co/The	34,226		1,842
Adient plc ^(a)	55,615		2,531		Eastman Chemical Co	4,567		328
Allison Transmission Holdings Inc	4,592		135		FMC Corp	811		38
BorgWarner Inc	5,959		214		Huntsman Corp	6,555		111
Goodyear Tire & Rubber Co/The	8,206		238		LyondellBasell Industries NV	6,597		525
Lear Corp	524		64		Monsanto Co	3,332		336
		$	3,182		Mosaic Co/The	10,703		252
Banks - 13.24%					NewMarket Corp	32		13
					Platform Specialty Products Corp ^(a)	5,737		42
Associated Banc-Corp	5,414		110
Bank of America Corp	2,272,761		37,501		Praxair Inc	743		87
Bank of Hawaii Corp	1,623		122		Sherwin-Williams Co/The	41,340		10,122
					Versum Materials Inc ^(a)	269		6
Bank of New York Mellon Corp/The	22,685		982
BankUnited Inc	3,322		97		Westlake Chemical Corp	1,366		71
BB&T Corp	36,593		1,434		WR Grace & Co	1,069		72
BOK Financial Corp	1,015		72				$	40,648
Capital One Financial Corp	277,379		20,537		Coal - 0.01%
Citigroup Inc	433,069		21,285		CONSOL Energy Inc	7,851		133
Citizens Financial Group Inc	10,050		265
Comerica Inc	5,435		283		Commercial Services - 1.39%
Commerce Bancshares Inc/MO	3,048		152		AMERCO	80		26
Cullen/Frost Bankers Inc	1,931		147		Aramark	4,537		169
East West Bancorp Inc	4,666		184		Booz Allen Hamilton Holding Corp	374,202		11,402
					CoreLogic Inc/United States ^(a)	1,252		53
Fifth Third Bancorp	46,994		1,023
First Horizon National Corp	8,311		128		H&R Block Inc	7,048		162
					Herc Holdings Inc ^(a)	760		23
First Republic Bank/CA	1,102		82
Goldman Sachs Group Inc/The	8,360		1,490		LSC Communications Inc	383		9
Huntington Bancshares Inc/OH	31,971		339		ManpowerGroup Inc	2,310		178
JPMorgan Chase & Co	771,543		53,437		Moody's Corp	370		37
KeyCorp	51,381		725		Nielsen Holdings PLC	4,870		219
					PayPal Holdings Inc ^(a)	281,760		11,738
M&T Bank Corp	7,566		929
					Quanta Services Inc ^(a)	3,529		102
Morgan Stanley	30,926		1,038
Northern Trust Corp	4,500		326		RR Donnelley & Sons Co	1,405		25
					United Rentals Inc ^(a)	626		47
PacWest Bancorp	3,920		170
PNC Financial Services Group Inc/The	261,376		24,988				$	24,190
Popular Inc	3,847		140		Computers - 1.07%
Regions Financial Corp	39,504		423		Amdocs Ltd	196,440		11,482
Signature Bank/New York NY ^(a)	650		78		Apple Inc	15,349		1,743
State Street Corp	186,189		13,072		Brocade Communications Systems Inc	14,510		154

See accompanying notes					341


Schedule of Investments
LargeCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Computers (continued)					Electric (continued)
Computer Sciences Corp	4,167	$	227		SCANA Corp	4,007	$	294
Dell Technologies Inc - VMware Inc ^(a)	5,818		286		Southern Co/The	30,992		1,598
Hewlett Packard Enterprise Co	60,638		1,363		WEC Energy Group Inc	195,781		11,692
HP Inc	65,581		950		Westar Energy Inc	4,521		259
International Business Machines Corp	9,650		1,483		Xcel Energy Inc	21,264		884
Leidos Holdings Inc	2,079		86				$	46,616
Lexmark International Inc	2,253		89		Electrical Components & Equipment - 0.08%
NetApp Inc	9,378		318		AMETEK Inc	5,679		251
Western Digital Corp	6,108		357		Emerson Electric Co	17,762		900
		$	18,538		Energizer Holdings Inc	1,474		69
Consumer Products - 0.01%					Hubbell Inc	769		80
Avery Dennison Corp	333		23				$	1,300
Clorox Co/The	409		49		Electronics - 2.86%
Kimberly-Clark Corp	1,151		132		Agilent Technologies Inc	5,193		226
		$	204		Arrow Electronics Inc ^(a)	3,051		187
Cosmetics & Personal Care - 1.25%					Avnet Inc	3,954		166
Colgate-Palmolive Co	203,257		14,505		Corning Inc	23,296		529
Coty Inc ^(a)	12,774		293		Fitbit Inc ^(a)	2,025		27
Procter & Gamble Co/The	80,239		6,965		FLIR Systems Inc	4,601		151
		$	21,763		Fortive Corp	8,891		454
Distribution & Wholesale - 0.02%					Garmin Ltd	3,649		176
Ingram Micro Inc	5,053		188		Gentex Corp	4,018		68
WESCO International Inc ^(a)	1,525		83		Honeywell International Inc	224,749		24,650
		$	271		Jabil Circuit Inc	6,230		133
Diversified Financial Services - 2.75%					Johnson Controls International plc	556,150		22,424
Affiliated Managers Group Inc ^(a)	224		30		Keysight Technologies Inc ^(a)	5,760		189
Alliance Data Systems Corp	50,066		10,237		PerkinElmer Inc	2,735		139
					Trimble Inc ^(a)	2,480		69
Ally Financial Inc	14,251		258
American Express Co	275,265		18,283				$	49,588
Ameriprise Financial Inc	2,366		209		Energy - Alternate Sources - 0.01%
BlackRock Inc	4,311		1,471		First Solar Inc ^(a)	2,268		92
Charles Schwab Corp/The	5,158		164
CIT Group Inc	6,233		226		Engineering & Construction - 0.05%
CME Group Inc	7,318		733		AECOM ^(a)	4,682		130
Discover Financial Services	16,439		926		Chicago Bridge & Iron Co NV ADR	3,220		103
FNF Group	8,450		303		Fluor Corp	4,313		224
Franklin Resources Inc	11,038		372		Jacobs Engineering Group Inc ^(a)	3,928		203
Intercontinental Exchange Inc	44,270		11,970		KBR Inc	5,606		83
Invesco Ltd	10,232		287		SBA Communications Corp ^(a)	962		109
Lazard Ltd	3,675		134				$	852
Nasdaq Inc	3,559		228		Entertainment - 0.01%
Navient Corp	11,538		147		Dolby Laboratories Inc	2,058		98
Raymond James Financial Inc	3,997		240		International Game Technology PLC	3,487		100
Santander Consumer USA Holdings Inc ^(a)	4,473		55		Regal Entertainment Group	2,524		54
SLM Corp ^(a)	14,100		99				$	252
Synchrony Financial	39,283		1,123		Environmental Control - 0.04%
T Rowe Price Group Inc	1,219		78		Republic Services Inc	7,346		387
TD Ameritrade Holding Corp	1,132		39		Stericycle Inc ^(a)	146		12
		$	47,612		Waste Management Inc	4,924		323
Electric - 2.69%							$	722
AES Corp/VA	21,654		255		Food - 1.53%
Alliant Energy Corp	7,120		271		ConAgra Foods Inc	1,956		94
Ameren Corp	7,632		381		General Mills Inc	179,200		11,107
American Electric Power Co Inc	10,663		691		Hain Celestial Group Inc/The ^(a)	1,036		38
CMS Energy Corp	8,703		367		Hormel Foods Corp	1,291		50
Consolidated Edison Inc	11,835		894		Ingredion Inc	734		96
Dominion Resources Inc/VA	12,505		940		JM Smucker Co/The	6,878		903
DTE Energy Co	8,130		781		Kellogg Co	389		29
Duke Energy Corp	22,538		1,803		Kraft Heinz Co/The	11,265		1,002
Edison International	6,866		505		McCormick & Co Inc/MD	107,800		10,335
Entergy Corp	92,474		6,813		Mondelez International Inc	32,383		1,455
Eversource Energy	6,906		380		Pilgrim's Pride Corp	1,809		40
Exelon Corp	34,365		1,171		Pinnacle Foods Inc	3,702		190
FirstEnergy Corp	9,234		317		Post Holdings Inc ^(a)	965		74
Hawaiian Electric Industries Inc	3,902		115		Safeway, Inc. - CVR - Casa Ley ^(a),(b),(c)	16,993		—
MDU Resources Group Inc	6,879		180		Safeway, Inc. - CVR - Property Development	16,993		—
NextEra Energy Inc	107,784		13,797		Centers ^(a),(b),(c)
NRG Energy Inc	10,612		113		TreeHouse Foods Inc ^(a)	1,186		104
OGE Energy Corp	6,585		204		Tyson Foods Inc	10,999		779
PG&E Corp	10,757		668		Whole Foods Market Inc	8,140		230
Pinnacle West Capital Corp	3,608		275				$	26,526
PPL Corp	14,716		505		Forest Products & Paper - 0.04%
Public Service Enterprise Group Inc	10,993		463		Domtar Corp	2,127		77

See accompanying notes					342


Schedule of Investments
LargeCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Forest Products & Paper (continued)					Insurance (continued)
International Paper Co	13,711	$	617		Allied World Assurance Co Holdings AG	3,175	$	136
		$	694		Allstate Corp/The	166,988		11,338
Gas - 0.11%					American Financial Group Inc/OH	2,394		178
Atmos Energy Corp	3,252		242		American International Group Inc	593,185		36,600
CenterPoint Energy Inc	14,005		319		American National Insurance Co	452		53
National Fuel Gas Co	2,658		139		AmTrust Financial Services Inc	3,397		90
NiSource Inc	10,473		244		Arch Capital Group Ltd ^(a)	3,653		285
Sempra Energy	5,389		577		Arthur J Gallagher & Co	2,112		102
UGI Corp	5,715		265		Aspen Insurance Holdings Ltd	2,340		113
Vectren Corp	3,050		153		Assurant Inc	2,008		162
		$	1,939		Assured Guaranty Ltd	4,798		143
Hand & Machine Tools - 0.05%					Axis Capital Holdings Ltd	3,201		182
					Berkshire Hathaway Inc - Class B ^(a)	58,911		8,501
Lincoln Electric Holdings Inc	880		58
Regal Beloit Corp	1,498		88		Brown & Brown Inc	3,997		147
Snap-on Inc	583		90		Chubb Ltd	105,818		13,439
Stanley Black & Decker Inc	5,199		592		Cincinnati Financial Corp	4,793		339
		$	828		CNA Financial Corp	1,522		56
Healthcare - Products - 3.31%					Endurance Specialty Holdings Ltd	2,170		200
Abbott Laboratories	387,719		15,215		Erie Indemnity Co	422		43
Baxter International Inc	15,585		742		Everest Re Group Ltd	1,386		282
Becton Dickinson and Co	62,900		10,562		First American Financial Corp	3,872		151
Cooper Cos Inc/The	389		68		Hanover Insurance Group Inc/The	1,593		121
Danaher Corp	14,411		1,132		Hartford Financial Services Group Inc/The	8,472		374
DENTSPLY SIRONA Inc	4,994		287		Lincoln National Corp	5,881		289
Hill-Rom Holdings Inc	305		17		Loews Corp	8,822		380
					Markel Corp ^(a)	417		366
Medtronic PLC	337,413		27,674
QIAGEN NV ^(a)	7,082		173		MetLife Inc	35,817		1,682
St Jude Medical Inc	3,575		278		Old Republic International Corp	8,699		147
Teleflex Inc	1,141		163		ProAssurance Corp	1,914		102
Thermo Fisher Scientific Inc	4,644		683		Progressive Corp/The	11,421		360
VWR Corp ^(a)	2,501		69		Prudential Financial Inc	17,387		1,474
Zimmer Biomet Holdings Inc	3,266		344		Reinsurance Group of America Inc	2,149		232
		$	57,407		RenaissanceRe Holdings Ltd	1,470		183
					Torchmark Corp	3,917		248
Healthcare - Services - 3.37%
Aetna Inc	103,069		11,064		Travelers Cos Inc/The	13,018		1,408
Amsurg Corp ^(a)	802		48		Unum Group	7,792		276
Anthem Inc	184,897		22,532		Validus Holdings Ltd	2,794		143
Centene Corp ^(a)	1,447		90		Voya Financial Inc	6,800		208
Cigna Corp	87,265		10,369		WR Berkley Corp	3,288		188
DaVita Inc ^(a)	3,148		185		XL Group Ltd	230,200		7,988
Envision Healthcare Holdings Inc ^(a)	1,207		24				$	90,260
HCA Holdings Inc ^(a)	2,157		165		Internet - 0.07%
					Liberty Ventures ^(a)	3,396		135
Humana Inc	188		32
Laboratory Corp of America Holdings ^(a)	2,506		314		Symantec Corp	11,388		285
LifePoint Health Inc ^(a)	1,312		79		Twitter Inc ^(a)	1,591		29
MEDNAX Inc ^(a)	940		58		Yahoo! Inc ^(a)	18,778		780
					Yelp Inc ^(a)	512		17
Quest Diagnostics Inc	4,335		353
Quintiles IMS Holdings Inc ^(a)	1,003		72		Zillow Group Inc - A Shares ^(a)	533		18
					Zillow Group Inc - C Shares ^(a)	881		29
UnitedHealth Group Inc	90,852		12,840
Universal Health Services Inc	2,000		241				$	1,293
WellCare Health Plans Inc ^(a)	236		27		Iron & Steel - 0.06%
		$	58,493		Nucor Corp	10,887		532
Holding Companies - Diversified - 0.01%					Reliance Steel & Aluminum Co	2,262		155
Leucadia National Corp	10,611		198		Steel Dynamics Inc	6,469		178
					United States Steel Corp	4,859		94
Home Builders - 0.03%							$	959
CalAtlantic Group Inc	2,037		66		Leisure Products & Services - 0.90%
DR Horton Inc	5,047		145		Brunswick Corp/DE	803		35
Lennar Corp - A Shares	2,826		118		Carnival Corp	316,591		15,545
					Vista Outdoor Inc ^(a)	1,591		61
Lennar Corp - B Shares	668		22
PulteGroup Inc	7,773		145				$	15,641
Toll Brothers Inc ^(a)	2,650		73		Lodging - 0.04%
		$	569		Choice Hotels International Inc	681		33
Home Furnishings - 0.02%					Extended Stay America Inc	2,761		39
Harman International Industries Inc	1,180		94		Hilton Worldwide Holdings Inc	2,211		50
Whirlpool Corp	2,062		309		Hyatt Hotels Corp ^(a)	973		49
		$	403		Marriott International Inc/MD	1,692		116
					MGM Resorts International ^(a)	12,860		337
Housewares - 0.00%
Scotts Miracle-Gro Co/The	206		18		Wynn Resorts Ltd	239		23
							$	647
Insurance - 5.20%					Machinery - Construction & Mining - 0.07%
Aflac Inc	18,912		1,302		Caterpillar Inc	12,108		1,011
Alleghany Corp ^(a)	483		249

See accompanying notes					343


Schedule of Investments
LargeCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Machinery - Construction & Mining (continued)					Oil & Gas (continued)
Oshkosh Corp	2,476	$	132		Continental Resources Inc/OK ^(a)	1,912	$	93
		$	1,143		Devon Energy Corp	10,341		392
Machinery - Diversified - 0.70%					Diamond Offshore Drilling Inc	2,465		41
AGCO Corp	2,139		109		Diamondback Energy Inc ^(a)	2,044		187
Cummins Inc	5,881		752		Energen Corp	3,150		158
Deere & Co	122,688		10,833		Ensco PLC	9,441		74
IDEX Corp	383		33		EOG Resources Inc	134,375		12,150
Manitowoc Foodservice Inc ^(a)	2,699		41		EQT Corp	88,908		5,868
Rockwell Automation Inc	581		70		Exxon Mobil Corp	289,897		24,154
Roper Technologies Inc	1,068		185		Helmerich & Payne Inc	3,265		206
Xylem Inc/NY	2,900		140		Hess Corp	15,178		728
		$	12,163		HollyFrontier Corp	5,012		125
					Kosmos Energy Ltd ^(a)	4,770		25
Media - 1.61%
Comcast Corp - Class A	258,238		15,964		Marathon Oil Corp	25,865		341
Discovery Communications Inc - A Shares ^(a)	850		22		Marathon Petroleum Corp	309,529		13,492
Discovery Communications Inc - C Shares ^(a)	1,174		29		Murphy Oil Corp	5,414		140
DISH Network Corp ^(a)	1,719		101		Murphy USA Inc ^(a)	681		47
John Wiley & Sons Inc	1,608		83		Nabors Industries Ltd	9,489		113
Liberty Broadband Corp - A Shares ^(a)	961		62		Noble Corp plc	7,673		38
Liberty Broadband Corp - C Shares ^(a)	3,220		215		Noble Energy Inc	9,237		318
Liberty Media Corp-Liberty SiriusXM ^(a)	3,134		104		Occidental Petroleum Corp	325,343		23,721
Liberty Media Corp-Liberty SiriusXM ^(a)	5,859		194		Parsley Energy Inc ^(a)	4,910		162
News Corp - A Shares	12,114		147		Patterson-UTI Energy Inc	5,450		122
TEGNA Inc	7,109		139		PBF Energy Inc	3,334		73
Thomson Reuters Corp	9,293		366		Phillips 66	190,123		15,428
Time Warner Inc	9,257		824		Pioneer Natural Resources Co	3,528		632
Tribune Media Co	2,367		77		QEP Resources Inc	8,561		138
Twenty-First Century Fox Inc - A Shares	358,341		9,414		Range Resources Corp	6,613		223
					Rice Energy Inc ^(a)	4,203		93
Twenty-First Century Fox Inc - B Shares	3,851		102
Viacom Inc - A Shares	443		19		Rowan Cos Plc	4,116		55
Viacom Inc - B Shares	1,534		58		SM Energy Co	2,735		92
		$	27,920		Tesoro Corp	3,774		321
					Transocean Ltd ^(a)	10,483		101
Metal Fabrication & Hardware - 0.01%
Timken Co/The	2,552		84		Valero Energy Corp	22,704		1,345
					WPX Energy Inc ^(a)	10,896		118
Valmont Industries Inc	257		33
		$	117				$	181,664
Mining - 0.08%					Oil & Gas Services - 0.78%
Alcoa Corp	9,526		274		Baker Hughes Inc	9,485		525
Freeport-McMoRan Inc ^(a)	22,477		251		Dril-Quip Inc ^(a)	1,559		74
					FMC Technologies Inc ^(a)	7,588		245
Newmont Mining Corp	17,539		650
Royal Gold Inc	1,800		124		Frank's International NV	1,971		22
Tahoe Resources Inc	9,327		112		Halliburton Co	18,610		856
		$	1,411		National Oilwell Varco Inc	8,173		262
					Oceaneering International Inc	3,563		85
Miscellaneous Manufacturers - 0.48%
AptarGroup Inc	1,483		106		Schlumberger Ltd	139,874		10,943
Carlisle Cos Inc	1,485		156		Superior Energy Services Inc	5,578		79
Colfax Corp ^(a)	3,083		98		Targa Resources Corp	5,008		220
					Weatherford International PLC ^(a)	26,863		129
Crane Co	1,749		119
Donaldson Co Inc	767		28				$	13,440
Dover Corp	4,710		315		Packaging & Containers - 0.04%
Eaton Corp PLC	15,805		1,008		Bemis Co Inc	2,662		130
General Electric Co	160,838		4,680		Graphic Packaging Holding Co	3,802		47
Ingersoll-Rand PLC	6,020		405		Sonoco Products Co	3,240		163
ITT Inc	2,832		100		WestRock Co	7,605		351
Parker-Hannifin Corp	5,211		640				$	691
Pentair PLC	4,909		271		Pharmaceuticals - 9.86%
					Allergan plc ^(a)	3,499		731
Textron Inc	5,765		231
Trinity Industries Inc	4,940		105		Cardinal Health Inc	236,306		16,232
					Endo International PLC ^(a)	6,203		116
		$	8,262
					Express Scripts Holding Co ^(a)	291,685		19,659
Office & Business Equipment - 0.02%
Xerox Corp	30,238		295		Johnson & Johnson	420,350		48,756
					Mallinckrodt PLC ^(a)	3,374		200
Oil & Gas - 10.47%					Mead Johnson Nutrition Co	2,618		196
Anadarko Petroleum Corp	20,524		1,220		Merck & Co Inc	389,139		22,850
Antero Resources Corp ^(a)	6,018		159		Mylan NV ^(a)	11,358		415
					OPKO Health Inc ^(a)	846		8
Apache Corp	2,538		151
					Patheon NV ^(a)	752		19
BP PLC ADR	718,580		25,545
Cabot Oil & Gas Corp	5,009		105		Perrigo Co PLC	4,081		339
Chesapeake Energy Corp ^(a)	17,570		97		Pfizer Inc	915,629		29,035
					Premier Inc ^(a)	1,246		40
Chevron Corp	279,060		29,231
Cimarex Energy Co	2,518		325		Sanofi ADR	428,716		16,673
Concho Resources Inc ^(a)	3,050		387		Teva Pharmaceutical Industries Ltd ADR	368,623		15,755
ConocoPhillips	532,336		23,130				$	171,024

See accompanying notes					344


Schedule of Investments
LargeCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Pipelines - 0.18%					REITS (continued)
Kinder Morgan Inc/DE	76,864	$	1,570		WP Carey Inc	3,431	$	208
Spectra Energy Corp	29,734		1,243				$	35,726
Williams Cos Inc/The	12,495		365		Retail - 3.60%
		$	3,178		AutoNation Inc ^(a)	1,369		60
REITS - 2.06%					Bed Bath & Beyond Inc	4,297		174
Alexandria Real Estate Equities Inc	2,033		219		Best Buy Co Inc	8,605		335
American Campus Communities Inc	4,189		218		Burlington Stores Inc ^(a)	1,084		81
American Homes 4 Rent	5,680		120		Cabela's Inc ^(a)	1,429		88
Annaly Capital Management Inc	31,989		331		Coach Inc	6,913		248
Apartment Investment & Management Co	5,097		225		CST Brands Inc	2,471		119
Apple Hospitality REIT Inc	5,480		99		CVS Health Corp	354,987		29,854
AvalonBay Communities Inc	2,968		508		Dick's Sporting Goods Inc	896		50
Boston Properties Inc	4,629		558		Dillard's Inc	808		49
Brandywine Realty Trust	5,710		89		Foot Locker Inc	662		44
Brixmor Property Group Inc	6,652		169		GameStop Corp	3,310		80
Camden Property Trust	2,806		229		Gap Inc/The	6,914		191
Care Capital Properties Inc	2,822		75		Genuine Parts Co	1,360		123
Chimera Investment Corp	7,143		112		Home Depot Inc/The	111,600		13,616
Columbia Property Trust Inc	4,110		87		JC Penney Co Inc ^(a)	10,352		89
Communications Sales & Leasing Inc	3,796		108		Kohl's Corp	5,825		255
Corporate Office Properties Trust	3,598		96		L Brands Inc	4,317		312
Corrections Corp of America	3,970		57		Liberty Interactive Corp QVC Group ^(a)	5,884		109
Crown Castle International Corp	1,420		129		Macy's Inc	9,484		346
CubeSmart	2,244		59		Michaels Cos Inc/The ^(a)	1,275		30
CyrusOne Inc	449		20		MSC Industrial Direct Co Inc	1,101		80
DCT Industrial Trust Inc	3,256		152		Nu Skin Enterprises Inc	1,351		83
DDR Corp	10,627		163		Penske Automotive Group Inc	1,432		64
Digital Realty Trust Inc	2,252		210		PVH Corp	2,515		269
Douglas Emmett Inc	4,660		170		Signet Jewelers Ltd	254		21
Duke Realty Corp	11,158		292		Target Corp	153,275		10,534
Empire State Realty Trust Inc	2,600		51		Tiffany & Co	3,358		247
EPR Properties	2,206		160		Urban Outfitters Inc ^(a)	1,134		38
Equity Commonwealth ^(a)	4,490		136		Walgreens Boots Alliance Inc	14,797		1,224
Equity One Inc	3,268		93		Wal-Mart Stores Inc	51,004		3,571
Equity Residential	7,744		478		Wendy's Co/The	3,814		41
Essex Property Trust Inc	1,586		340		World Fuel Services Corp	2,627		106
Forest City Realty Trust Inc	7,669		166				$	62,531
General Growth Properties Inc	12,484		312		Savings & Loans - 0.01%
HCP Inc	10,113		346		People's United Financial Inc	10,857		176
Healthcare Trust of America Inc	1,264		39
Highwoods Properties Inc	3,202		159		Semiconductors - 3.96%
Hospitality Properties Trust	5,426		148		Analog Devices Inc	6,666		427
Host Hotels & Resorts Inc	22,834		353		Applied Materials Inc	6,787		197
Kimco Realty Corp	12,751		339		Intel Corp	132,653		4,626
Liberty Property Trust	4,992		202		IPG Photonics Corp ^(a)	338		33
Life Storage Inc	689		56		Lam Research Corp	58,547		5,671
Macerich Co/The	4,549		322		Linear Technology Corp	2,738		164
MFA Financial Inc	14,816		108		Micron Technology Inc ^(a)	22,352		384
Mid-America Apartment Communities Inc	2,375		220		ON Semiconductor Corp ^(a)	12,270		143
National Retail Properties Inc	4,677		213		Qorvo Inc ^(a)	3,803		212
Omega Healthcare Investors Inc	4,107		131		QUALCOMM Inc	378,030		25,978
Paramount Group Inc	5,959		93		Skyworks Solutions Inc	332		26
Piedmont Office Realty Trust Inc	5,513		113		Teradyne Inc	6,957		162
Post Properties Inc	1,911		126		Texas Instruments Inc	430,049		30,469
Prologis Inc	17,678		922		Xilinx Inc	3,762		191
Public Storage	46,299		9,895				$	68,683
Rayonier Inc ^(b)	4,572		123
					Shipbuilding - 0.00%
Realty Income Corp	8,909		528		Huntington Ingalls Industries Inc	371		60
Regency Centers Corp	2,676		193
Retail Properties of America Inc	8,711		136		Software - 4.44%
Senior Housing Properties Trust	7,094		151		Akamai Technologies Inc ^(a)	662		46
Simon Property Group Inc	57,546		10,701		Allscripts Healthcare Solutions Inc ^(a)	6,046		73
SL Green Realty Corp	2,989		294		ANSYS Inc ^(a)	1,984		181
Spirit Realty Capital Inc	15,902		189		Autodesk Inc ^(a)	826		60
Starwood Property Trust Inc	7,879		175		CA Inc	8,765		269
STORE Capital Corp	5,378		147		Donnelley Financial Solutions Inc ^(a)	383		8
Sun Communities Inc	2,163		166		Dun & Bradstreet Corp/The	797		100
Tanger Factory Outlet Centers Inc	990		34		Fidelity National Information Services Inc	3,035		224
Ventas Inc	8,626		584		Microsoft Corp	595,760		35,698
VEREIT Inc	30,874		290		Nuance Communications Inc ^(a)	2,061		29
Vornado Realty Trust	3,730		346		Oracle Corp	1,036,308		39,815
Weingarten Realty Investors	4,091		148		PTC Inc ^(a)	1,896		90
Welltower Inc	11,896		815		SS&C Technologies Holdings Inc	494		16
Weyerhaeuser Co	16,110		482
See accompanying notes					345


Schedule of Investments
LargeCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)		Shares Held	Value (000's)					Portfolio Summary (unaudited)
Software (continued)						Sector						Percent
Synopsys Inc ^(a)		4,135	$	245		Consumer, Non-cyclical						25.27	%
VMware Inc ^(a)		1,722		135		Financial						23.25	%
Zynga Inc ^(a)		22,358		63		Energy						11.45	%
			$	77,052		Industrial						10.85	%
Telecommunications - 3.46%						Technology						9.49	%
AT&T Inc		415,696		15,294		Consumer, Cyclical						5.94	%
CenturyLink Inc		17,837		474		Communications						5.14	%
Cisco Systems Inc		155,380		4,767		Investment Companies						3.50	%
EchoStar Corp ^(a)		1,552		72		Utilities						2.82	%
Frontier Communications Corp		34,468		138		Basic Materials						2.52	%
Juniper Networks Inc		11,797		311		Diversified						0.01	%
Level 3 Communications Inc ^(a)		6,352		357		Other Assets and Liabilities						(0.24	)%
Motorola Solutions Inc		4,903		356		TOTAL NET ASSETS						100.00	%
Sprint Corp ^(a)		22,087		136
Telephone & Data Systems Inc		2,740		71
T-Mobile US Inc ^(a)		2,346		117
United States Cellular Corp ^(a)		417		14
Verizon Communications Inc		786,548		37,833
			$	59,940
Textiles - 0.29%
Mohawk Industries Inc ^(a)		27,262		5,024

Transportation - 1.96%
CSX Corp		32,125		980
Expeditors International of Washington Inc		1,989		102
FedEx Corp		58,400		10,180
Genesee & Wyoming Inc ^(a)		1,764		120
Kansas City Southern		3,345		294
Kirby Corp ^(a)		1,545		91
Norfolk Southern Corp		109,395		10,174
Old Dominion Freight Line Inc ^(a)		874		65
Ryder System Inc		1,698		118
Union Pacific Corp		135,307		11,932
			$	34,056
Water - 0.02%
American Water Works Co Inc		5,420		401

TOTAL COMMON STOCKS			$	1,678,250
INVESTMENT COMPANIES - 3.50%		Shares Held	Value (000's)
Money Market Funds - 3.50%
Cash Account Trust - Government & Agency		1,067,678		1,068
Portfolio - Government Cash Managed
First American Government Obligations Fund		19,609,351		19,609
Goldman Sachs Financial Square Funds -		40,007,565		40,008
Government Fund
			$	60,685
TOTAL INVESTMENT COMPANIES			$	60,685
Total Investments			$	1,738,935
Other Assets and Liabilities - (0.24)%			$	(4,142	)
TOTAL NET ASSETS - 100.00%			$	1,734,793


(a)	Non-Income Producing Security
(b)	Security is Illiquid. At the end of the period, the value of these securities
	totaled $123 or 0.01% of net assets.
(c)	Fair value of these investments is determined in good faith by the Manager
	under procedures established and periodically reviewed by the Board of
	Directors. At the end of the period, the fair value of these securities totaled
	$0 or 0.00% of net assets.



Futures Contracts

												Unrealized
Type		Long/Short		Contracts		Notional Value				Fair Value	Appreciation/(Depreciation)
S&P 500 Emini; December 2016		Long		655			$	70,545	$	69,433	$	(1,112	)
Total										$		(1,112	)

Amounts in thousands except contracts


Schedule of Investments
MidCap Fund
October 31, 2016



COMMON STOCKS - 99.41%	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Aerospace & Defense - 3.11%					Internet - 3.09%
TransDigm Group Inc	1,311,062	$	357,212		Liberty Ventures ^(a)		3,842,581	$	153,319
					VeriSign Inc ^(a)		2,400,052		201,652
Banks - 1.08%								$	354,971
M&T Bank Corp	1,007,880		123,697		Machinery - Diversified - 1.98%
					Roper Technologies Inc		1,314,768		227,862
Beverages - 0.24%
Brown-Forman Corp - B Shares	589,818		27,232		Media- 6.09	%
					FactSet Research Systems Inc		84,402		13,059
Building Materials - 1.66%					Liberty Broadband Corp - A Shares ^(a)		855,684		55,577
Armstrong World Industries Inc ^(a)	1,144,950		42,936		Liberty Broadband Corp - C Shares ^(a)		2,603,210		173,504
Martin Marietta Materials Inc	732,897		135,864		Liberty Global PLC - A Shares ^(a)		999,444		32,582
Vulcan Materials Co	110,900		12,554		Liberty Global PLC - C Shares ^(a)		6,102,686		194,065
		$	191,354		Liberty Global Plc LiLAC - C Shares ^(a)		319,820		8,840
Chemicals - 2.97%					Liberty Media Corp-Liberty Braves ^(a)		668,341		11,141
Air Products & Chemicals Inc	1,623,608		216,622		Liberty Media Corp-Liberty Braves ^(a)		152,719		2,589
Axalta Coating Systems Ltd ^(a)	1,695,958		42,602		Liberty Media Corp-Liberty Media ^(a)		381,347		10,613
Sherwin-Williams Co/The	330,133		80,836		Liberty Media Corp-Liberty Media ^(a)		1,071,050		29,357
Versum Materials Inc ^(a)	55,454		1,259		Liberty Media Corp-Liberty SiriusXM ^(a)		1,265,290		42,096
		$	341,319		Liberty Media Corp-Liberty SiriusXM ^(a)		3,820,660		126,808
Commercial Services - 11.68%								$	700,231
Brookfield Business Partners LP	317,700		7,377		Miscellaneous Manufacturers - 1.73%
Ecolab Inc	586,140		66,920		Colfax Corp ^(a),(b)		6,242,338		198,444
IHS Markit Ltd ^(a)	1,443,572		53,109
KAR Auction Services Inc	3,481,048		148,223		Pharmaceuticals - 3.24%
Live Nation Entertainment Inc ^(a)	3,404,134		94,192		Mead Johnson Nutrition Co		946,862		70,797
Macquarie Infrastructure Corp	1,816,353		148,596		Zoetis Inc		6,312,388		301,732
Moody's Corp	3,166,969		318,344					$	372,529
Robert Half International Inc	875,624		32,766		Private Equity - 1.14%
S&P Global Inc	2,174,386		264,949		KKR & Co LP		2,207,470		31,324
Verisk Analytics Inc ^(a)	2,564,126		209,104		Onex Corp		1,550,558		100,273
		$	1,343,580					$	131,597
Distribution & Wholesale - 0.91%					Real Estate - 7.40%
Fastenal Co	1,415,775		55,187		Brookfield Asset Management Inc		16,081,393		563,170
HD Supply Holdings Inc ^(a)	1,513,309		49,939		Brookfield Property Partners LP		2,113,730		46,882
		$	105,126		CBRE Group Inc ^(a)		6,057,098		156,031
Diversified Financial Services - 2.25%					Howard Hughes Corp/The ^(a)		774,858		85,103
FNF Group	6,671,115		239,560					$	851,186
FNFV Group ^(a)	1,642,224		19,789		REITS- 2.21	%
		$	259,349		Equinix Inc		379,701		135,660
Electric - 2.33%					Forest City Realty Trust Inc		5,501,493		118,777
Brookfield Infrastructure Partners LP	6,393,083		216,278					$	254,437
Brookfield Renewable Partners LP	1,692,550		51,724		Retail - 14.86%
		$	268,002		AutoZone Inc ^(a)		259,557		192,633
Electronics - 0.63%					CarMax Inc ^(a)		5,871,335		293,214
Sensata Technologies Holding NV ^(a)	2,031,693		72,592		Copart Inc ^(a)		2,452,939		128,706
					Dollar General Corp		863,240		59,641
Engineering & Construction - 3.79%					Dollar Tree Inc ^(a)		3,295,888		249,004
SBA Communications Corp ^(a)	3,852,769		436,442		O'Reilly Automotive Inc ^(a)		1,057,507		279,647
					Restaurant Brands International Inc		5,463,390		242,957
Healthcare - Products - 1.54%					Ross Stores Inc		4,205,749		263,028
CR Bard Inc	818,344		177,319					$	1,708,830
					Semiconductors - 1.42%
Healthcare - Services - 0.99%					Microchip Technology Inc		2,701,205		163,558
DaVita Inc ^(a)	1,941,192		113,793
					Software - 5.97%
Holding Companies - Diversified - 0.69%					Autodesk Inc ^(a)		3,195,855		230,996
Leucadia National Corp	4,235,832		79,083		CDK Global Inc		1,359,268		74,230
					CommerceHub Inc - Series A ^(a)		317,441		4,768
Home Builders - 0.70%					CommerceHub Inc - Series C ^(a)		404,894		6,094
Lennar Corp - A Shares	1,301,528		54,261		Fidelity National Information Services Inc		2,482,554		183,510
NVR Inc ^(a)	17,084		26,019		Intuit Inc		1,318,305		143,352
		$	80,280		MSCI Inc		542,198		43,479
Insurance - 13.00%								$	686,429
Alleghany Corp ^(a)	84,128		43,428		Telecommunications - 1.35%
Aon PLC	3,647,638		404,268		EchoStar Corp ^(a)		670,947		31,360
Arch Capital Group Ltd ^(a)	1,303,468		101,631		Motorola Solutions Inc		1,714,962		124,472
Brown & Brown Inc	2,628,255		96,878					$	155,832
Loews Corp	4,267,549		183,633		Textiles - 1.36%
Markel Corp ^(a)	430,046		377,335		Mohawk Industries Inc ^(a)		846,692		156,045
Progressive Corp/The	2,478,400		78,094
White Mountains Insurance Group Ltd	112,690		93,501		TOTAL COMMON STOCKS			$	11,432,908
Willis Towers Watson PLC	919,849		115,809
		$	1,494,577
See accompanying notes					347


Schedule of Investments
MidCap Fund
October 31, 2016



INVESTMENT COMPANIES - 0.08%		Shares Held				Value(000			's)
Money Market Funds - 0.08%
Goldman Sachs Financial Square Funds -		9,704,686				$		9,705
Government Fund

TOTAL INVESTMENT COMPANIES						$		9,705
Total Investments					$	11,442,613
Other Assets and Liabilities - 0.51%						$	58,146
TOTAL NET ASSETS - 100.00%					$	11,500,759


(a)	Non-Income Producing Security
(b)	Affiliated Security as defined by the Investment Company Act of 1974 (the
	Fund controls 5.0% or more of the outstanding voting shares of the
	security). Please see Affiliated Sub-Schedule for transactional information.




	Portfolio Summary (unaudited)
Sector								Percent
Financial								27.08	%
Consumer, Cyclical								17.83	%
Consumer, Non-cyclical								17.69	%
Industrial								12.90	%
Communications								10.53	%
Technology								7.39	%
Basic Materials								2.97	%
Utilities								2.33	%
Diversified								0.69	%
Investment Companies								0.08	%
Other Assets and Liabilities								0.51	%
TOTAL NET ASSETS							100.00		%



		October 31,		October 31,											October 31,		October 31,
Affiliated Securities		2015		2015				Purchases		Purchases	Sales			Sales	2016		2016
		Shares		Cost				Shares		Cost	Shares			Proceeds	Shares		Cost
Colfax Corp		3,978,427	$	211,153				2,301,511	$	63,425	37,600		$	940	6,242,338	$	272,915
		$		211,153				$		63,425			$	940		$	272,915


										Realized Gain/Loss					Realized Gain from
				Income						on Investments				Capital Gain Distributions
Colfax Corp		$					—	$			(723	)	$				—
		$					—	$			(723	)	$				—
Amounts in thousands except shares


Schedule of Investments
MidCap Growth Fund
October 31, 2016



COMMON STOCKS - 97.67%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Automobile Parts & Equipment - 3.19%					Miscellaneous Manufacturers - 1.18%
BorgWarner Inc	45,100	$	1,616		Parker-Hannifin Corp	12,432	$	1,526
Mobileye NV ^(a)	67,941		2,526
		$	4,142		Oil & Gas - 1.71%
Banks - 2.62%					Pioneer Natural Resources Co	12,406		2,221
Comerica Inc	26,200		1,365
Zions Bancorporation	63,300		2,039		Pharmaceuticals - 3.96%
					DexCom Inc ^(a)	14,158		1,108
		$	3,404
					VCA Inc ^(a)	20,549		1,263
Beverages - 5.82%
Constellation Brands Inc	23,225		3,881		Zoetis Inc	57,846		2,765
Molson Coors Brewing Co	19,765		2,052				$	5,136
Monster Beverage Corp ^(a)	11,221		1,620		Retail - 7.01%
					Burlington Stores Inc ^(a)	27,197		2,038
		$	7,553
					Dollar Tree Inc ^(a)	13,989		1,057
Biotechnology - 2.13%
BioMarin Pharmaceutical Inc ^(a)	16,768		1,350		PVH Corp	14,700		1,573
Incyte Corp ^(a)	16,300		1,418		Ulta Salon Cosmetics & Fragrance Inc ^(a)	18,165		4,420
		$	2,768				$	9,088
Building Materials - 3.25%					Semiconductors - 5.88%
Fortune Brands Home & Security Inc	35,706		1,951		Applied Materials Inc	107,674		3,131
					Micron Technology Inc ^(a)	113,500		1,948
Masco Corp	73,562		2,271		Microsemi Corp ^(a)	60,365		2,543
		$	4,222
Chemicals - 1.29%							$	7,622
Albemarle Corp	20,100		1,679		Software - 12.90%
					Activision Blizzard Inc	74,897		3,233
					CommVault Systems Inc ^(a)	39,400		2,108
Commercial Services - 7.09%					Electronic Arts Inc ^(a)	38,973		3,060
Booz Allen Hamilton Holding Corp	107,088		3,263
Cintas Corp	12,812		1,367		Fidelity National Information Services Inc	29,325		2,168
TransUnion ^(a)	71,577		2,236		ServiceNow Inc ^(a)	52,030		4,574
Vantiv Inc ^(a)	39,987		2,333		Take-Two Interactive Software Inc ^(a)	36,000		1,598
		$	9,199				$	16,741
Diversified Financial Services - 3.22%					Telecommunications - 1.70%
					CommScope Holding Co Inc ^(a)	72,377		2,211
Intercontinental Exchange Inc	10,670		2,885
Nasdaq Inc	20,154		1,289
		$	4,174		Textiles - 1.39%
					Mohawk Industries Inc ^(a)	9,784		1,803
Electrical Components & Equipment - 0.99%
Universal Display Corp ^(a)	24,732		1,279
					Toys, Games & Hobbies - 1.99%
					Mattel Inc	81,787		2,579
Electronics - 4.12%
Allegion PLC	29,957		1,913
Fortive Corp	31,800		1,623		Transportation - 1.45%
Trimble Inc ^(a)	65,192		1,802		Canadian Pacific Railway Ltd	13,108		1,874
		$	5,338
					TOTAL COMMON STOCKS		$	126,711
Environmental Control - 2.02%
Waste Connections Inc	34,788		2,616		INVESTMENT COMPANIES - 3.06%	Shares Held		Value(000	's)
					Money Market Funds - 3.06%
Healthcare - Products - 9.46%					Goldman Sachs Financial Square Funds -	3,972,110		3,972
Cooper Cos Inc/The	8,947		1,575		Government Fund
Edwards Lifesciences Corp ^(a)	28,118		2,678
IDEXX Laboratories Inc ^(a)	34,655		3,713		TOTAL INVESTMENT COMPANIES		$	3,972
Intuitive Surgical Inc ^(a)	3,229		2,170		Total Investments		$	130,683
Zimmer Biomet Holdings Inc	20,324		2,142		Other Assets and Liabilities - (0.73)%		$	(952	)
		$	12,278		TOTAL NET ASSETS - 100.00%		$	129,731
Healthcare - Services - 3.03%
Laboratory Corp of America Holdings ^(a)	12,419		1,556
WellCare Health Plans Inc ^(a)	20,958		2,379		(a) Non-Income Producing Security
		$	3,935
Housewares - 1.89%
Newell Brands Inc	51,104		2,454		Portfolio Summary (unaudited)
					Sector			Percent
Insurance - 1.29%					Consumer, Non-cyclical			31.49	%
Aon PLC	15,087		1,672		Technology			18.78	%
					Consumer, Cyclical			16.80	%
Internet - 3.61%					Industrial			15.15	%
eBay Inc ^(a)	45,300		1,292		Financial			7.13	%
Expedia Inc	13,700		1,770		Communications			5.31	%
Match Group Inc ^(a)	89,700		1,620		Investment Companies			3.06	%
		$	4,682		Energy			1.71	%
Leisure Products & Services - 1.33%					Basic Materials			1.30	%
Royal Caribbean Cruises Ltd	22,500		1,730		Other Assets and Liabilities			(0.73	)%
					TOTAL NET ASSETS			100.00	%
Machinery - Diversified - 2.15%
Middleby Corp/The ^(a)	24,841		2,785


Schedule of Investments
MidCap Growth Fund III
October 31, 2016



COMMON STOCKS - 95.90%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.26%					Chemicals - 0.74%
Clear Channel Outdoor Holdings Inc	7,564	$	43		Axalta Coating Systems Ltd ^(a)	249,095	$	6,257
Interpublic Group of Cos Inc/The	54,492		1,220		Celanese Corp	4,015		293
Omnicom Group Inc	29,188		2,330		FMC Corp	9,170		430
		$	3,593		International Flavors & Fragrances Inc	6,815		891
Aerospace & Defense - 1.03%					NewMarket Corp	837		336
B/E Aerospace Inc	11,871		706		RPM International Inc	11,097		527
HEICO Corp	2,794		189		Valspar Corp/The	9,632		959
HEICO Corp - Class A	4,940		296		WR Grace & Co	4,760		319
Rockwell Collins Inc	11,130		938				$	10,012
Spirit AeroSystems Holdings Inc	10,201		514		Commercial Services - 8.07%
TransDigm Group Inc	41,571		11,327		AMERCO	445		143
		$	13,970		Aramark	18,711		697
					Avis Budget Group Inc ^(a)	9,758		316
Airlines - 0.07%
Alaska Air Group Inc	12,833		927		Booz Allen Hamilton Holding Corp	311,137		9,480
JetBlue Airways Corp ^(a)	3,972		69		Cintas Corp	11,263		1,201
					CoreLogic Inc/United States ^(a)	7,229		308
		$	996
					CoStar Group Inc ^(a)	70,309		13,156
Apparel - 1.27%
Carter's Inc	5,811		502		Equifax Inc	50,277		6,233
Hanesbrands Inc	564,049		14,496		Euronet Worldwide Inc ^(a)	172,136		13,694
Michael Kors Holdings Ltd ^(a)	21,005		1,067		FleetCor Technologies Inc ^(a)	11,145		1,954
					Gartner Inc ^(a)	110,338		9,493
Ralph Lauren Corp	352		34
Skechers U.S.A. Inc ^(a)	14,571		306		Global Payments Inc	13,109		951
Under Armour Inc - Class A ^(a)	15,587		485		Herc Holdings Inc ^(a)	785		24
Under Armour Inc - Class C ^(a)	15,769		408		Hertz Global Holdings Inc ^(a)	1,758		58
		$	17,298		KAR Auction Services Inc	11,723		499
					LSC Communications Inc	2,105		51
Automobile Manufacturers - 0.02%
					MarketAxess Holdings Inc	20,297		3,060
PACCAR Inc	5,575		306
					Moody's Corp	17,200		1,729
					Morningstar Inc	1,947		138
Automobile Parts & Equipment - 1.83%
Adient plc ^(a)	2,718		123		Nielsen Holdings PLC	33,481		1,507
					Quanta Services Inc ^(a)	5,562		160
BorgWarner Inc	237,558		8,514
					Robert Half International Inc	14,465		541
Delphi Automotive PLC	23,309		1,517
					RR Donnelley & Sons Co	5,864		104
Lear Corp	9,099		1,117
Mobileye NV ^(a)	110,025		4,091		Sabre Corp	24,366		629
WABCO Holdings Inc ^(a)	96,822		9,533		Service Corp International/US	22,064		565
					ServiceMaster Global Holdings Inc ^(a)	15,356		550
		$	24,895
					Total System Services Inc	23,847		1,190
Banks - 2.24%					TransUnion ^(a)	6,957		217
Citizens Financial Group Inc	30,847		813		United Rentals Inc ^(a)	10,244		775
East West Bancorp Inc	245,837		9,713		Vantiv Inc ^(a)	295,503		17,245
First Republic Bank/CA	88,224		6,566		Verisk Analytics Inc ^(a)	258,682		21,095
Signature Bank/New York NY ^(a)	105,120		12,674
SVB Financial Group ^(a)	4,171		510		Western Union Co/The	68,235		1,370
					WEX Inc ^(a)	4,662		509
Western Alliance Bancorp ^(a)	5,843		218
							$	109,642
		$	30,494
					Computers - 3.52%
Beverages - 0.85%					Check Point Software Technologies Ltd ^(a)	115,730		9,786
Brown-Forman Corp - A Shares	6,000		291		CSRA Inc	360,143		9,036
Brown-Forman Corp - B Shares	21,469		991		DST Systems Inc	4,075		392
Dr Pepper Snapple Group Inc	116,574		10,234		Fortinet Inc ^(a)	16,629		533
		$	11,516		Genpact Ltd ^(a)	788,265		18,122
Biotechnology - 1.10%					Leidos Holdings Inc	8,753		364
Alnylam Pharmaceuticals Inc ^(a)	7,087		252
					MAXIMUS Inc	163,369		8,505
(a)
BioMarin Pharmaceutical Inc	117,523		9,463		NCR Corp ^(a)	14,900		522
Charles River Laboratories International Inc	5,335		405		Teradata Corp ^(a)	16,124		435
(a)
					VeriFone Systems Inc ^(a)	12,078		187
Illumina Inc ^(a)	12,511		1,703
Incyte Corp ^(a)	17,849		1,552				$	47,882
Intercept Pharmaceuticals Inc ^(a)	1,789		221		Consumer Products - 0.96%
Intrexon Corp ^(a)	6,035		158		Avery Dennison Corp	11,461		800
Ionis Pharmaceuticals Inc ^(a)	13,138		341		Church & Dwight Co Inc	209,978		10,134
Juno Therapeutics Inc ^(a)	6,181		150		Clorox Co/The	14,336		1,720
Seattle Genetics Inc ^(a)	10,498		543		Spectrum Brands Holdings Inc	2,843		384
United Therapeutics Corp ^(a)	1,337		161				$	13,038
					Cosmetics & Personal Care - 0.01%
		$	14,949		Coty Inc ^(a)	2,895		67
Building Materials - 1.92%
Cree Inc ^(a)	3,968		89
					Distribution & Wholesale - 2.93%
Eagle Materials Inc	5,583		452		Fastenal Co	155,633		6,067
Fortune Brands Home & Security Inc	181,840		9,934		HD Supply Holdings Inc ^(a)	24,631		813
Lennox International Inc	5,104		745		LKQ Corp ^(a)	422,201		13,629
Martin Marietta Materials Inc	6,964		1,291		Pool Corp	62,265		5,764
Masco Corp	28,693		886		Watsco Inc	90,928		12,483
Vulcan Materials Co	111,541		12,626		WW Grainger Inc	4,730		984
		$	26,023				$	39,740

See accompanying notes					350


Schedule of Investments
MidCap Growth Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Diversified Financial Services - 3.37%					Food Service - 0.01%
Affiliated Managers Group Inc ^(a)	102,907	$	13,651		US Foods Holding Corp ^(a)	5,428	$	123
Air Lease Corp	5,645		171
Alliance Data Systems Corp	61,023		12,477		Hand & Machine Tools - 0.66%
Ameriprise Financial Inc	6,464		571		Lincoln Electric Holdings Inc	4,727		311
Artisan Partners Asset Management Inc	4,051		105		Snap-on Inc	53,453		8,238
CBOE Holdings Inc	6,879		435		Stanley Black & Decker Inc	3,315		377
Credit Acceptance Corp ^(a)	911		168				$	8,926
Eaton Vance Corp	11,946		419		Healthcare - Products - 6.16%
Federated Investors Inc	10,174		275		ABIOMED Inc ^(a)	22,985		2,413
Interactive Brokers Group Inc - A Shares	820		27		Align Technology Inc ^(a)	67,311		5,784
Intercontinental Exchange Inc	30,423		8,226		Bio-Techne Corp	4,204		437
Invesco Ltd	5,874		165		Bruker Corp	12,512		256
Lazard Ltd	1,854		68		Cooper Cos Inc/The	58,117		10,231
LPL Financial Holdings Inc	1,408		44		CR Bard Inc	9,008		1,952
Nasdaq Inc	98,470		6,299		DENTSPLY SIRONA Inc	98,817		5,689
NorthStar Asset Management Group Inc	20,088		275		Edwards Lifesciences Corp ^(a)	141,107		13,436
SEI Investments Co	10,870		482		Henry Schein Inc ^(a)	7,010		1,046
T Rowe Price Group Inc	15,851		1,015		Hill-Rom Holdings Inc	6,960		386
TD Ameritrade Holding Corp	27,423		938		Hologic Inc ^(a)	23,856		859
		$	45,811		IDEXX Laboratories Inc ^(a)	179,263		19,206
Electrical Components & Equipment - 0.90%					Intuitive Surgical Inc ^(a)	22,736		15,280
Acuity Brands Inc	50,707		11,337		Patterson Cos Inc	9,663		413
AMETEK Inc	3,602		159		ResMed Inc	18,729		1,119
Energizer Holdings Inc	2,585		120		St Jude Medical Inc	23,718		1,846
Hubbell Inc	5,269		550		Teleflex Inc	2,387		342
		$	12,166		Varian Medical Systems Inc ^(a)	12,996		1,179
Electronics - 2.59%					VWR Corp ^(a)	1,340		37
Agilent Technologies Inc	15,046		656		West Pharmaceutical Services Inc	6,099		464
Allegion PLC	8,171		522		Zimmer Biomet Holdings Inc	12,392		1,306
Amphenol Corp	37,068		2,444				$	83,681
Fitbit Inc ^(a)	12,505		166		Healthcare - Services - 4.06%
Fortive Corp	183,230		9,354		Acadia Healthcare Co Inc ^(a)	187,860		6,755
Gentex Corp	22,435		379		Amsurg Corp ^(a)	3,527		211
Johnson Controls International plc	27,176		1,096		Centene Corp ^(a)	206,392		12,896
Mettler-Toledo International Inc ^(a)	26,155		10,568		DaVita Inc ^(a)	5,599		328
National Instruments Corp	9,295		261		Envision Healthcare Holdings Inc ^(a)	17,539		347
PerkinElmer Inc	6,509		331		HealthSouth Corp	131,420		5,276
Trimble Inc ^(a)	288,810		7,983		Laboratory Corp of America Holdings ^(a)	88,847		11,136
Waters Corp ^(a)	10,093		1,404		MEDNAX Inc ^(a)	263,207		16,122
		$	35,164		Quintiles IMS Holdings Inc ^(a)	15,426		1,107
Engineering & Construction - 1.17%					Tenet Healthcare Corp ^(a)	9,190		181
SBA Communications Corp ^(a)	140,127		15,874		Universal Health Services Inc	1,800		217
					WellCare Health Plans Inc ^(a)	4,689		532
Entertainment - 0.83%							$	55,108
Cinemark Holdings Inc	12,553		500		Home Builders - 0.18%
Gaming and Leisure Properties Inc	24,331		799		CalAtlantic Group Inc	1,434		46
Regal Entertainment Group	4,509		97		DR Horton Inc	15,744		454
Six Flags Entertainment Corp	168,254		9,363		Lennar Corp - A Shares	8,035		335
Vail Resorts Inc	3,057		487		Lennar Corp - B Shares	1,835		62
		$	11,246		NVR Inc ^(a)	298		454
Environmental Control - 0.04%					PulteGroup Inc	20,927		389
Clean Harbors Inc ^(a)	522		25		Thor Industries Inc	5,847		464
Stericycle Inc ^(a)	6,632		531		Toll Brothers Inc ^(a)	8,645		237
		$	556				$	2,441
Food - 2.65%					Home Furnishings - 0.53%
Blue Buffalo Pet Products Inc ^(a)	7,046		177		Harman International Industries Inc	71,159		5,672
Campbell Soup Co	15,945		866		Leggett & Platt Inc	20,179		926
ConAgra Foods Inc	29,496		1,421		Tempur Sealy International Inc ^(a)	6,164		333
Hain Celestial Group Inc/The ^(a)	8,726		317		Whirlpool Corp	2,193		329
Hershey Co/The	12,009		1,230				$	7,260
Hormel Foods Corp	31,909		1,229		Housewares - 1.38%
Ingredion Inc	7,744		1,016		Newell Brands Inc	361,820		17,375
Kellogg Co	19,623		1,474		Scotts Miracle-Gro Co/The	4,940		435
McCormick & Co Inc/MD	118,504		11,361		Toro Co/The	12,661		606
Pilgrim's Pride Corp	1,773		39		Tupperware Brands Corp	6,179		368
Post Holdings Inc ^(a)	4,318		329				$	18,784
Sprouts Farmers Market Inc ^(a)	15,965		354		Insurance - 1.11%
TreeHouse Foods Inc ^(a)	2,144		188		AmTrust Financial Services Inc	713		19
Tyson Foods Inc	211,793		15,006		Arthur J Gallagher & Co	18,013		869
WhiteWave Foods Co/The ^(a)	14,892		811		Brown & Brown Inc	795		29
Whole Foods Market Inc	4,559		129		Erie Indemnity Co	1,947		199
		$	35,947		Lincoln National Corp	9,171		450
					Progressive Corp/The	4,749		150

See accompanying notes					351


Schedule of Investments
MidCap Growth Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Insurance (continued)					Mining (continued)
Willis Towers Watson PLC	103,994	$	13,093		Southern Copper Corp	4,263	$	121
XL Group Ltd	7,834		272				$	442
		$	15,081		Miscellaneous Manufacturers - 1.16%
Internet - 1.62%					AO Smith Corp	281,777		12,727
CDW Corp/DE	263,517		11,834		Carlisle Cos Inc	3,617		379
Expedia Inc	10,224		1,321		Donaldson Co Inc	13,843		506
F5 Networks Inc ^(a)	10,097		1,396		Hexcel Corp	10,880		495
GoDaddy Inc ^(a)	6,124		219		Ingersoll-Rand PLC	16,425		1,105
Groupon Inc ^(a)	43,843		175		Textron Inc	11,889		477
IAC/InterActiveCorp	6,667		430				$	15,689
Liberty Ventures ^(a)	3,130		125		Office & Business Equipment - 0.03%
LinkedIn Corp ^(a)	10,053		1,906		Pitney Bowes Inc	22,040		393
Match Group Inc ^(a)	6,667		120
Palo Alto Networks Inc ^(a)	7,449		1,146		Oil & Gas - 1.10%
Symantec Corp	7,423		186		Cabot Oil & Gas Corp	27,850		582
TripAdvisor Inc ^(a)	9,698		625		Chesapeake Energy Corp ^(a)	5,826		32
Twitter Inc ^(a)	47,963		861		Cimarex Energy Co	1,257		162
VeriSign Inc ^(a)	12,997		1,092		Concho Resources Inc ^(a)	36,816		4,673
Yelp Inc ^(a)	6,224		203		Continental Resources Inc/OK ^(a)	4,197		205
Zillow Group Inc - A Shares ^(a)	4,072		135		Devon Energy Corp	8,115		308
Zillow Group Inc - C Shares ^(a)	7,858		262		Diamondback Energy Inc ^(a)	85,830		7,836
		$	22,036		Murphy USA Inc ^(a)	3,112		214
Iron & Steel - 0.02%					Newfield Exploration Co ^(a)	4,311		175
Steel Dynamics Inc	10,791		296		Parsley Energy Inc ^(a)	1,609		53
					Southwestern Energy Co ^(a)	62,985		654
Leisure Products & Services - 0.24%							$	14,894
Brunswick Corp/DE	42,078		1,831		Packaging & Containers - 1.43%
Harley-Davidson Inc	15,520		885		Ball Corp	196,943		15,178
Norwegian Cruise Line Holdings Ltd ^(a)	1,316		51		Bemis Co Inc	2,483		121
Polaris Industries Inc	6,790		520		Berry Plastics Group Inc ^(a)	14,231		623
		$	3,287		Crown Holdings Inc ^(a)	17,753		963
Lodging - 0.33%					Graphic Packaging Holding Co	27,651		346
Choice Hotels International Inc	3,395		164		Owens-Illinois Inc ^(a)	18,339		354
Hilton Worldwide Holdings Inc	39,432		891		Packaging Corp of America	12,428		1,025
Hyatt Hotels Corp ^(a)	898		46		Sealed Air Corp	16,844		769
Marriott International Inc/MD	24,979		1,716				$	19,379
MGM Resorts International ^(a)	3,613		95		Pharmaceuticals - 2.82%
Wyndham Worldwide Corp	15,129		996		ACADIA Pharmaceuticals Inc ^(a)	10,417		243
Wynn Resorts Ltd	6,216		588		Agios Pharmaceuticals Inc ^(a)	3,097		148
		$	4,496		Akorn Inc ^(a)	9,671		232
Machinery - Diversified - 3.30%					Alkermes PLC ^(a)	16,519		833
BWX Technologies Inc	11,428		448		AmerisourceBergen Corp	22,506		1,583
Cognex Corp	9,830		507		DexCom Inc ^(a)	6,995		547
Flowserve Corp	6,726		285		Herbalife Ltd ^(a)	76,901		4,666
Graco Inc	92,155		6,902		Mead Johnson Nutrition Co	153,512		11,478
IDEX Corp	9,424		815		Neurocrine Biosciences Inc ^(a)	9,379		410
Manitowoc Foodservice Inc ^(a)	7,607		115		OPKO Health Inc ^(a)	32,119		303
Middleby Corp/The ^(a)	166,847		18,706		Perrigo Co PLC	56,249		4,679
Nordson Corp	6,697		670		Premier Inc ^(a)	2,060		66
Rockwell Automation Inc	69,880		8,366		VCA Inc ^(a)	8,795		540
Roper Technologies Inc	4,369		757		Zoetis Inc	264,438		12,640
Wabtec Corp/DE	88,661		6,854				$	38,368
Xylem Inc/NY	7,938		384		Pipelines - 0.11%
		$	44,809		ONEOK Inc	26,148		1,266
Media - 1.29%					Williams Cos Inc/The	9,725		284
AMC Networks Inc ^(a)	6,924		339				$	1,550
Cable One Inc	20,647		11,908		Real Estate - 0.05%
Discovery Communications Inc - A Shares ^(a)	16,479		430		CBRE Group Inc ^(a)	25,725		663
Discovery Communications Inc - C Shares ^(a)	25,771		647
FactSet Research Systems Inc	4,931		763		REITS - 0.91%
Scripps Networks Interactive Inc	9,603		618		Alexandria Real Estate Equities Inc	935		101
Sirius XM Holdings Inc	243,579		1,016		Boston Properties Inc	3,735		450
Starz ^(a)	9,905		311		Care Capital Properties Inc	1,779		47
Viacom Inc - A Shares	1,963		83		CubeSmart	14,331		374
Viacom Inc - B Shares	38,202		1,435		CyrusOne Inc	7,107		317
		$	17,550		Digital Realty Trust Inc	12,255		1,145
Metal Fabrication & Hardware - 0.02%					Empire State Realty Trust Inc	10,066		197
Valmont Industries Inc	2,170		278		Equinix Inc	5,924		2,116
					Equity LifeStyle Properties Inc	10,219		775
Mining - 0.03%					Essex Property Trust Inc	3,417		731
Freeport-McMoRan Inc ^(a)	24,610		275		Extra Space Storage Inc	14,706		1,076
Royal Gold Inc	666		46		Federal Realty Investment Trust	6,041		877
					Healthcare Trust of America Inc	11,225		343

See accompanying notes					352


Schedule of Investments
MidCap Growth Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
REITS (continued)					Software (continued)
Iron Mountain Inc	28,952	$	977		Autodesk Inc ^(a)	14,859	$	1,074
Lamar Advertising Co	9,302		590		Black Knight Financial Services Inc ^(a)	3,742		147
Life Storage Inc	3,734		301		Blackbaud Inc	78,930		4,846
Omega Healthcare Investors Inc	10,417		332		Broadridge Financial Solutions Inc	16,851		1,090
Regency Centers Corp	3,159		228		Cadence Design Systems Inc ^(a)	25,465		651
Senior Housing Properties Trust	4,995		106		CDK Global Inc	21,379		1,168
Tanger Factory Outlet Centers Inc	10,510		366		Cerner Corp ^(a)	262,434		15,373
Ventas Inc	13,558		919		Citrix Systems Inc ^(a)	20,054		1,701
		$	12,368		Donnelley Financial Solutions Inc ^(a)	2,301		49
Retail - 11.29%					Dun & Bradstreet Corp/The	43,886		5,479
Advance Auto Parts Inc	6,067		850		Electronic Arts Inc ^(a)	34,315		2,694
AutoNation Inc ^(a)	3,411		150		Fidelity National Information Services Inc	15,786		1,167
AutoZone Inc ^(a)	3,486		2,587		First Data Corp ^(a)	37,006		518
Bed Bath & Beyond Inc	7,205		291		Fiserv Inc ^(a)	131,671		12,967
Brinker International Inc	6,969		343		Guidewire Software Inc ^(a)	174,491		10,024
Burlington Stores Inc ^(a)	119,626		8,965		Jack Henry & Associates Inc	11,508		932
Cabela's Inc ^(a)	1,077		66		Manhattan Associates Inc ^(a)	90,335		4,574
CarMax Inc ^(a)	16,558		827		MSCI Inc	12,136		973
Casey's General Stores Inc	68,119		7,697		NetSuite Inc ^(a)	4,425		412
Chipotle Mexican Grill Inc ^(a)	2,422		874		Nuance Communications Inc ^(a)	22,289		313
Coach Inc	4,488		161		Paychex Inc	38,581		2,130
Copart Inc ^(a)	205,873		10,802		PTC Inc ^(a)	6,065		288
Darden Restaurants Inc	9,902		642		Rackspace Hosting Inc ^(a)	13,541		433
Dick's Sporting Goods Inc	8,220		457		Red Hat Inc ^(a)	212,613		16,467
Dollar General Corp	288,583		19,938		ServiceNow Inc ^(a)	123,124		10,824
Dollar Tree Inc ^(a)	27,692		2,092		Splunk Inc ^(a)	11,151		671
Domino's Pizza Inc	68,655		11,619		SS&C Technologies Holdings Inc	17,707		565
Dunkin' Brands Group Inc	10,531		509		Synopsys Inc ^(a)	144,812		8,589
Foot Locker Inc	17,426		1,163		Tyler Technologies Inc ^(a)	65,549		10,514
Gap Inc/The	3,316		91		Ultimate Software Group Inc/The ^(a)	55,407		11,691
Genuine Parts Co	17,975		1,628		Veeva Systems Inc ^(a)	325,842		12,659
L Brands Inc	3,738		270		Workday Inc ^(a)	9,980		865
Liberty Interactive Corp QVC Group ^(a)	21,289		394				$	170,541
lululemon athletica Inc ^(a)	111,923		6,407		Telecommunications - 0.13%
Michaels Cos Inc/The ^(a)	9,729		226		Arista Networks Inc ^(a)	4,826		409
MSC Industrial Direct Co Inc	2,755		201		ARRIS International PLC ^(a)	5,772		160
Nordstrom Inc	18,416		958		CommScope Holding Co Inc ^(a)	14,739		450
Nu Skin Enterprises Inc	2,186		135		Motorola Solutions Inc	1,680		122
Ollie's Bargain Outlet Holdings Inc ^(a)	252,415		6,904		Zayo Group Holdings Inc ^(a)	17,817		574
O'Reilly Automotive Inc ^(a)	82,136		21,721				$	1,715
Panera Bread Co ^(a)	2,599		496		Textiles - 0.09%
Rite Aid Corp ^(a)	88,223		592		Mohawk Industries Inc ^(a)	6,575		1,212
Ross Stores Inc	277,696		17,367
Sally Beauty Holdings Inc ^(a)	217,080		5,631		Toys, Games & Hobbies - 1.08%
Signet Jewelers Ltd	6,133		498		Hasbro Inc	164,295		13,704
Tractor Supply Co	166,918		10,454		Mattel Inc	29,235		922
Ulta Salon Cosmetics & Fragrance Inc ^(a)	34,552		8,408				$	14,626
Urban Outfitters Inc ^(a)	8,857		296
					Transportation - 1.95%
Wendy's Co/The	14,853		161		CH Robinson Worldwide Inc	17,556		1,196
Williams-Sonoma Inc	10,297		476		Expeditors International of Washington Inc	10,888		560
		$	153,347		JB Hunt Transport Services Inc	96,822		7,902
Semiconductors - 1.83%					Landstar System Inc	5,212		371
IPG Photonics Corp ^(a)	50,482		4,897		Old Dominion Freight Line Inc ^(a)	220,273		16,450
KLA-Tencor Corp	13,366		1,004				$	26,479
Lam Research Corp	17,388		1,684		TOTAL COMMON STOCKS		$	1,302,708
Linear Technology Corp	9,515		571		INVESTMENT COMPANIES - 4.17%	Shares Held		Value(000	's)
Maxim Integrated Products Inc	24,234		960		Money Market Funds - 4.17%
Microchip Technology Inc	18,016		1,091		BlackRock Liquidity Funds FedFund Portfolio	18,551,434		18,552
Monolithic Power Systems Inc	104,715		8,253		Cash Account Trust - Government & Agency	685,007		685
NVIDIA Corp	61,062		4,345		Portfolio - Government Cash Managed
ON Semiconductor Corp ^(a)	5,498		64
					First American Government Obligations Fund	37,445,273		37,445
Qorvo Inc ^(a)	1,106		62
							$	56,682
Skyworks Solutions Inc	14,929		1,149		TOTAL INVESTMENT COMPANIES		$	56,682
Xilinx Inc	14,761		751
					Total Investments		$	1,359,390
		$	24,831
					Other Assets and Liabilities - (0.07)%		$	(903	)
Shipbuilding - 0.06%
					TOTAL NET ASSETS - 100.00%		$	1,358,487
Huntington Ingalls Industries Inc	5,395		870

Software - 12.55%					(a) Non-Income Producing Security
Akamai Technologies Inc ^(a)	398,587		27,690
ANSYS Inc ^(a)	4,985		455
athenahealth Inc ^(a)	4,321		447
Atlassian Corp PLC ^(a)	3,761		101

See accompanying notes					353


Schedule of Investments
MidCap S&P 400 Index Fund
October 31, 2016



COMMON STOCKS - 97.70%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 1.54%					Chemicals (continued)
B/E Aerospace Inc	81,019	$	4,822		Versum Materials Inc ^(a)	86,320	$	1,959
Curtiss-Wright Corp	35,416		3,174				$	33,248
Esterline Technologies Corp ^(a)	23,436		1,722		Coal - 0.20%
KLX Inc ^(a)	42,019		1,446		CONSOL Energy Inc	140,843		2,387
Orbital ATK Inc	46,683		3,471
Teledyne Technologies Inc ^(a)	27,630		2,975		Commercial Services - 3.75%
Triumph Group Inc	39,486		936		Aaron's Inc	51,635		1,276
		$	18,546		Avis Budget Group Inc ^(a)	75,404		2,440
Airlines - 0.37%					CEB Inc	25,675		1,249
JetBlue Airways Corp ^(a)	258,013		4,510		CoreLogic Inc/United States ^(a)	70,393		2,996
					Deluxe Corp	38,879		2,379
Apparel - 0.58%					DeVry Education Group Inc	45,236		1,027
Carter's Inc	39,909		3,446		FTI Consulting Inc ^(a)	33,627		1,310
Deckers Outdoor Corp ^(a)	25,543		1,333		Gartner Inc ^(a)	65,868		5,667
Skechers U.S.A. Inc ^(a)	106,287		2,235		Graham Holdings Co	3,709		1,762
		$	7,014		Live Nation Entertainment Inc ^(a)	105,239		2,912
Automobile Parts & Equipment - 0.15%					ManpowerGroup Inc	54,636		4,196
Dana Inc	114,349		1,770		MarketAxess Holdings Inc	29,997		4,522
					PAREXEL International Corp ^(a)	42,164		2,457
Banks - 5.96%					Rollins Inc	76,576		2,360
Associated Banc-Corp	118,456		2,405		Service Corp International/US	154,369		3,952
BancorpSouth Inc	68,606		1,612		Sotheby's	38,240		1,372
					WEX Inc ^(a)	30,652		3,344
Bank of Hawaii Corp	34,175		2,568
Bank of the Ozarks Inc	72,414		2,676				$	45,221
Cathay General Bancorp	59,099		1,770		Computers - 3.45%
Chemical Financial Corp	55,780		2,396		3D Systems Corp ^(a)	84,982		1,179
Commerce Bancshares Inc/MO	66,206		3,298		Brocade Communications Systems Inc	319,588		3,388
Cullen/Frost Bankers Inc	44,067		3,349		Computer Sciences Corp	111,953		6,096
East West Bancorp Inc	114,883		4,539		Convergys Corp	76,462		2,233
First Horizon National Corp	184,973		2,850		Diebold Inc	59,886		1,305
FNB Corp/PA	167,515		2,189		DST Systems Inc	26,004		2,500
Fulton Financial Corp	137,969		2,056		Fortinet Inc ^(a)	117,022		3,752
Hancock Holding Co	61,820		2,074		Leidos Holdings Inc	113,326		4,711
International Bancshares Corp	46,266		1,427		Lexmark International Inc	49,940		1,982
MB Financial Inc	56,896		2,071		MAXIMUS Inc	51,734		2,693
PacWest Bancorp	95,996		4,165		Mentor Graphics Corp	86,225		2,492
PrivateBancorp Inc	63,376		2,867		NCR Corp ^(a)	98,697		3,459
Prosperity Bancshares Inc	55,391		3,073		NetScout Systems Inc ^(a)	73,340		2,013
Signature Bank/New York NY ^(a)	42,797		5,160		Science Applications International Corp	35,736		2,463
SVB Financial Group ^(a)	41,486		5,073		VeriFone Systems Inc ^(a)	88,471		1,369
Synovus Financial Corp	98,005		3,241				$	41,635
TCF Financial Corp	136,362		1,950		Consumer Products - 0.15%
Trustmark Corp	53,913		1,492		Helen of Troy Ltd ^(a)	22,192		1,809
Umpqua Holdings Corp	175,547		2,682
Valley National Bancorp	202,876		2,000		Cosmetics & Personal Care - 0.48%
Webster Financial Corp	73,085		2,953		Avon Products Inc	348,407		2,282
		$	71,936		Edgewell Personal Care Co ^(a)	46,997		3,544
Beverages - 0.09%							$	5,826
Boston Beer Co Inc/The ^(a)	7,220		1,121		Distribution & Wholesale - 0.93%
					Fossil Group Inc ^(a)	33,383		910
Biotechnology - 0.80%					Ingram Micro Inc	119,314		4,439
Bio-Rad Laboratories Inc ^(a)	16,467		2,603		Pool Corp	33,521		3,103
Charles River Laboratories International Inc	37,703		2,861		Watsco Inc	20,562		2,823
(a)							$	11,275
United Therapeutics Corp ^(a)	34,654		4,161		Diversified Financial Services - 2.31%
		$	9,625		CBOE Holdings Inc	64,803		4,096
Building Materials - 0.96%					Eaton Vance Corp	90,426		3,171
Cree Inc ^(a)	80,401		1,793		Federated Investors Inc	74,807		2,020
Eagle Materials Inc	38,458		3,114		Janus Capital Group Inc	114,136		1,463
Lennox International Inc	31,192		4,550		Raymond James Financial Inc	100,530		6,044
Louisiana-Pacific Corp ^(a)	113,330		2,080		SEI Investments Co	108,036		4,789
		$	11,537		SLM Corp ^(a)	341,161		2,405
Chemicals - 2.76%					Stifel Financial Corp ^(a)	52,785		2,066
Ashland Global Holdings Inc	49,509		5,532		Waddell & Reed Financial Inc	66,044		1,038
Cabot Corp	49,730		2,593		WisdomTree Investments Inc	91,464		785
Minerals Technologies Inc	27,773		1,866				$	27,877
NewMarket Corp	7,368		2,954		Electric - 2.80%
Olin Corp	131,674		2,888		Black Hills Corp	41,714		2,580
PolyOne Corp	67,023		1,959		Great Plains Energy Inc	165,316		4,702
RPM International Inc	106,137		5,046		Hawaiian Electric Industries Inc	86,257		2,545
Sensient Technologies Corp	35,700		2,660		IDACORP Inc	40,183		3,150
Valspar Corp/The	58,141		5,791		MDU Resources Group Inc	155,703		4,081
					NorthWestern Corp	38,515		2,216

See accompanying notes					355


Schedule of Investments
MidCap S&P 400 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Electric (continued)					Healthcare - Products - 4.00%
OGE Energy Corp	159,209	$	4,942		ABIOMED Inc ^(a)	31,906	$	3,350
PNM Resources Inc	63,503		2,086		Align Technology Inc ^(a)	59,987		5,154
Talen Energy Corp ^(a)	68,652		956		Bio-Techne Corp	29,733		3,092
Westar Energy Inc	112,996		6,477		Halyard Health Inc ^(a)	37,206		1,204
		$	33,735		Hill-Rom Holdings Inc	47,494		2,632
Electrical Components & Equipment - 0.91%					IDEXX Laboratories Inc ^(a)	71,385		7,648
Belden Inc	33,579		2,176		LivaNova PLC ^(a)	35,211		1,996
Energizer Holdings Inc	49,352		2,295		NuVasive Inc ^(a)	40,032		2,391
EnerSys	34,621		2,255		ResMed Inc	112,171		6,704
Hubbell Inc	41,026		4,288		STERIS PLC	68,680		4,589
		$	11,014		Teleflex Inc	35,107		5,025
Electronics - 2.94%					West Pharmaceutical Services Inc	58,372		4,438
Arrow Electronics Inc ^(a)	72,760		4,447				$	48,223
Avnet Inc	101,540		4,259		Healthcare - Services - 1.35%
Gentex Corp	228,640		3,866		Amsurg Corp ^(a)	43,697		2,611
Jabil Circuit Inc	152,340		3,251		LifePoint Health Inc ^(a)	34,020		2,036
Keysight Technologies Inc ^(a)	135,479		4,444		MEDNAX Inc ^(a)	73,358		4,493
Knowles Corp ^(a)	70,708		1,056		Molina Healthcare Inc ^(a)	33,963		1,848
National Instruments Corp	84,074		2,362		Tenet Healthcare Corp ^(a)	63,471		1,251
Tech Data Corp ^(a)	28,074		2,162		WellCare Health Plans Inc ^(a)	35,291		4,006
Trimble Inc ^(a)	198,651		5,491				$	16,245
Vishay Intertechnology Inc	107,446		1,515		Home Builders - 1.23%
Woodward Inc	44,113		2,602		CalAtlantic Group Inc	59,467		1,922
		$	35,455		KB Home	65,952		959
Engineering & Construction - 0.95%					NVR Inc ^(a)	2,888		4,398
AECOM ^(a)	122,530		3,413		Thor Industries Inc	38,075		3,020
Dycom Industries Inc ^(a)	25,054		1,927		Toll Brothers Inc ^(a)	120,316		3,302
EMCOR Group Inc	48,472		2,931		TRI Pointe Group Inc ^(a)	116,542		1,262
Granite Construction Inc	31,569		1,552				$	14,863
KBR Inc	113,585		1,682		Home Furnishings - 0.18%
		$	11,505		Tempur Sealy International Inc ^(a)	40,514		2,191
Entertainment - 0.45%
Churchill Downs Inc	9,919		1,349		Housewares - 0.81%
Cinemark Holdings Inc	84,315		3,356		Scotts Miracle-Gro Co/The	36,120		3,182
International Speedway Corp	20,754		683		Toro Co/The	87,147		4,172
		$	5,388		Tupperware Brands Corp	40,289		2,398
Environmental Control - 0.28%							$	9,752
Clean Harbors Inc ^(a)	41,711		1,974		Insurance - 4.98%
MSA Safety Inc	24,828		1,447		Alleghany Corp ^(a)	12,308		6,353
		$	3,421		American Financial Group Inc/OH	58,190		4,335
Food - 3.21%					Aspen Insurance Holdings Ltd	47,997		2,316
Dean Foods Co	72,088		1,316		Brown & Brown Inc	91,399		3,369
Flowers Foods Inc	145,133		2,252		CNO Financial Group Inc	139,627		2,106
Hain Celestial Group Inc/The ^(a)	82,472		3,000		Endurance Specialty Holdings Ltd	51,182		4,706
Ingredion Inc	57,546		7,548		Everest Re Group Ltd	33,395		6,796
Lancaster Colony Corp	15,523		2,028		First American Financial Corp	87,470		3,417
Post Holdings Inc ^(a)	51,541		3,929		Genworth Financial Inc ^(a)	397,292		1,645
Snyder's-Lance Inc	68,167		2,425		Hanover Insurance Group Inc/The	34,077		2,596
Sprouts Farmers Market Inc ^(a)	111,230		2,464		Kemper Corp	38,727		1,454
Tootsie Roll Industries Inc	14,020		497		Mercury General Corp	29,073		1,584
TreeHouse Foods Inc ^(a)	45,217		3,956		Old Republic International Corp	194,585		3,281
United Natural Foods Inc ^(a)	40,165		1,676		Primerica Inc	37,049		2,027
WhiteWave Foods Co/The ^(a)	141,267		7,698		Reinsurance Group of America Inc	51,075		5,509
		$	38,789		RenaissanceRe Holdings Ltd	32,852		4,083
Forest Products & Paper - 0.15%					WR Berkley Corp	78,291		4,470
Domtar Corp	49,894		1,794				$	60,047
					Internet - 0.21%
					comScore Inc ^(a)	35,691		1,028
Gas - 2.45%
					WebMD Health Corp ^(a)	31,081		1,527
Atmos Energy Corp	82,791		6,159
National Fuel Gas Co	67,755		3,549				$	2,555
New Jersey Resources Corp	68,682		2,332		Iron & Steel - 1.44%
ONE Gas Inc	41,648		2,552		Allegheny Technologies Inc	86,892		1,185
Southwest Gas Corp	37,854		2,743		Carpenter Technology Corp	37,161		1,175
UGI Corp	138,118		6,394		Commercial Metals Co	91,386		1,436
Vectren Corp	66,040		3,322		Reliance Steel & Aluminum Co	57,823		3,977
WGL Holdings Inc	40,707		2,567		Steel Dynamics Inc	194,335		5,336
		$	29,618		United States Steel Corp	134,306		2,597
Hand & Machine Tools - 0.60%					Worthington Industries Inc	35,140		1,652
Kennametal Inc	63,540		1,799				$	17,358
Lincoln Electric Holdings Inc	50,408		3,318		Leisure Products & Services - 0.71%
Regal Beloit Corp	35,679		2,109		Brunswick Corp/DE	71,926		3,129
		$	7,226		Polaris Industries Inc	47,518		3,640


Schedule of Investments
MidCap S&P 400 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Leisure Products & Services (continued)					Packaging & Containers (continued)
Vista Outdoor Inc ^(a)	48,100	$	1,860		Greif Inc - Class A		20,554	$	963
		$	8,629		Packaging Corp of America		75,124		6,198
Machinery - Construction & Mining - 0.61%					Silgan Holdings Inc		32,786		1,670
Joy Global Inc	78,258		2,178		Sonoco Products Co		79,912		4,019
Oshkosh Corp	58,585		3,134					$	16,529
Terex Corp	86,579		2,068		Pharmaceuticals - 0.95%
		$	7,380		Akorn Inc ^(a)		70,332		1,684
Machinery - Diversified - 2.27%					Catalent Inc ^(a)		99,450		2,269
AGCO Corp	54,320		2,775		Owens & Minor Inc		49,752		1,615
Cognex Corp	67,852		3,501		Prestige Brands Holdings Inc ^(a)		42,186		1,910
Graco Inc	44,389		3,325		VCA Inc ^(a)		64,468		3,962
IDEX Corp	60,693		5,246					$	11,440
Nordson Corp	42,404		4,246		Real Estate - 0.42%
Wabtec Corp/DE	71,847		5,554		Alexander & Baldwin Inc		36,720		1,535
Zebra Technologies Corp ^(a)	42,067		2,770		Jones Lang LaSalle Inc		36,018		3,488
		$	27,417					$	5,023
Media - 1.22%					REITS- 11.14	%
AMC Networks Inc ^(a)	47,766		2,337		Alexandria Real Estate Equities Inc		62,163		6,702
Cable One Inc	3,740		2,157		American Campus Communities Inc		104,012		5,420
FactSet Research Systems Inc	32,409		5,014		Camden Property Trust		69,687		5,675
John Wiley & Sons Inc	35,669		1,841		Care Capital Properties Inc		66,923		1,778
Meredith Corp	29,128		1,321		Communications Sales & Leasing Inc		108,373		3,081
New York Times Co/The	97,066		1,058		Corporate Office Properties Trust		75,545		2,016
Time Inc	79,803		1,037		Corrections Corp of America		93,693		1,354
		$	14,765		Cousins Properties Inc		272,133		2,114
Metal Fabrication & Hardware - 0.34%					DCT Industrial Trust Inc		71,870		3,360
Timken Co/The	56,169		1,856		Douglas Emmett Inc		114,390		4,175
Valmont Industries Inc	18,047		2,309		Duke Realty Corp		279,637		7,312
		$	4,165		Education Realty Trust Inc		58,237		2,480
Mining - 0.46%					EPR Properties		50,724		3,689
Compass Minerals International Inc	26,938		1,935		Equity One Inc		73,356		2,091
Royal Gold Inc	52,034		3,581		First Industrial Realty Trust Inc		93,166		2,461
		$	5,516		Healthcare Realty Trust Inc		92,369		2,946
Miscellaneous Manufacturers - 2.36%					Highwoods Properties Inc		78,616		3,902
AO Smith Corp	118,204		5,339		Hospitality Properties Trust		130,914		3,582
AptarGroup Inc	50,173		3,584		Kilroy Realty Corp		73,487		5,279
Carlisle Cos Inc	51,518		5,402		Lamar Advertising Co		66,049		4,191
CLARCOR Inc	38,873		2,418		LaSalle Hotel Properties		90,138		2,141
Crane Co	39,574		2,692		Liberty Property Trust		116,984		4,730
Donaldson Co Inc	106,133		3,876		Life Storage Inc		36,988		2,983
ITT Inc	71,432		2,516		Mack-Cali Realty Corp		71,472		1,835
Trinity Industries Inc	121,492		2,594		Medical Properties Trust Inc		255,224		3,558
		$	28,421		Mid-America Apartment Communities Inc		60,218		5,585
					National Retail Properties Inc		117,196		5,346
Office Furnishings - 0.23%
Herman Miller Inc	47,712		1,326		Omega Healthcare Investors Inc		154,219		4,909
HNI Corp	35,441		1,441		Post Properties Inc		42,651		2,806
					Potlatch Corp		32,303		1,240
		$	2,767		Rayonier Inc ^(b)		97,953		2,627
Oil & Gas - 2.75%
Denbury Resources Inc ^(a)	317,561		759		Regency Centers Corp		83,303		6,004
					Senior Housing Properties Trust		189,330		4,027
Diamond Offshore Drilling Inc	51,397		848
					Tanger Factory Outlet Centers Inc		76,577		2,665
Energen Corp	77,387		3,879
					Taubman Centers Inc		48,147		3,489
Ensco PLC	240,287		1,879
Gulfport Energy Corp ^(a)	99,946		2,410		Urban Edge Properties		72,924		1,882
					Washington Prime Group Inc		147,765		1,550
HollyFrontier Corp	140,727		3,511
Murphy USA Inc ^(a)	29,349		2,019		Weingarten Realty Investors		93,758		3,395
								$	134,380
Nabors Industries Ltd	225,919		2,688
Noble Corp plc	193,902		958		Retail - 5.95%
					American Eagle Outfitters Inc		136,213		2,321
Patterson-UTI Energy Inc	117,777		2,648		Ascena Retail Group Inc ^(a)		132,993		650
QEP Resources Inc	191,025		3,070
Rowan Cos Plc	99,990		1,327		Big Lots Inc		35,376		1,535
					Brinker International Inc		43,787		2,156
SM Energy Co	69,253		2,329		Buffalo Wild Wings Inc ^(a)		14,588		2,125
Western Refining Inc	63,101		1,820		Cabela's Inc ^(a)		40,936		2,522
WPX Energy Inc ^(a)	274,517		2,981
					Casey's General Stores Inc		31,235		3,529
		$	33,126
					Cheesecake Factory Inc/The		35,647		1,896
Oil & Gas Services - 0.67%
Dril-Quip Inc ^(a)	29,952		1,423		Chico's FAS Inc		105,261		1,228
					Copart Inc ^(a)		77,610		4,072
NOW Inc ^(a)	85,682		1,847
					Cracker Barrel Old Country Store Inc		19,088		2,634
Oceaneering International Inc	78,177		1,861
Oil States International Inc ^(a)	40,932		1,197		CST Brands Inc		60,339		2,898
					Dick's Sporting Goods Inc		70,166		3,905
Superior Energy Services Inc	120,940		1,712
					Domino's Pizza Inc		38,473		6,511
		$	8,040		Dunkin' Brands Group Inc		73,141		3,537
Packaging & Containers - 1.37%					GameStop Corp		82,873		1,993
Bemis Co Inc	75,506		3,679
See accompanying notes					357


Schedule of Investments
MidCap S&P 400 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held	Value (000's)
Retail (continued)					Trucking & Leasing - 0.12%
Guess? Inc	49,105	$	663		GATX Corp		32,208	$	1,410
HSN Inc	25,416		958
Jack in the Box Inc	26,053		2,442		Water - 0.36%
JC Penney Co Inc ^(a)	245,334		2,107		Aqua America Inc		141,374		4,340
Kate Spade & Co ^(a)	102,067		1,710
MSC Industrial Direct Co Inc	35,457		2,581		TOTAL COMMON STOCKS			$	1,178,629
Office Depot Inc	433,641		1,366		INVESTMENT COMPANIES - 2.18%		Shares Held	Value (000's)
Panera Bread Co ^(a)	17,750		3,386		Exchange Traded Funds - 0.71%
Restoration Hardware Holdings Inc ^(a)	30,431		882		iShares Core S&P Mid-Cap ETF		57,333		8,632
Sally Beauty Holdings Inc ^(a)	116,751		3,029
Texas Roadhouse Inc	51,102		2,071		Money Market Funds - 1.47%
Wendy's Co/The	162,460		1,761		BlackRock Liquidity Funds FedFund Portfolio		17,699,800		17,700
Williams-Sonoma Inc	65,391		3,022
World Fuel Services Corp	56,162		2,261		TOTAL INVESTMENT COMPANIES			$	26,332
		$	71,751		Total Investments			$	1,204,961
Savings & Loans - 0.62%					Other Assets and Liabilities - 0.12%			$	1,469
New York Community Bancorp Inc	388,309		5,576		TOTAL NET ASSETS - 100.00%			$	1,206,430
Washington Federal Inc	72,140		1,966
		$	7,542
Semiconductors - 2.51%					(a)	Non-Income Producing Security
Advanced Micro Devices Inc ^(a)	585,458		4,233		(b)	Security is Illiquid. At the end of the period, the value of these securities
Cirrus Logic Inc ^(a)	49,812		2,689			totaled $2,627 or 0.22% of net assets.
Cypress Semiconductor Corp	256,057		2,553
Integrated Device Technology Inc ^(a)	107,088		2,218
Intersil Corp	108,023		2,385
IPG Photonics Corp ^(a)	29,663		2,878			Portfolio Summary (unaudited)
Microsemi Corp ^(a)	90,236		3,802		Sector				Percent
Monolithic Power Systems Inc	29,698		2,340		Financial				25.43	%
Silicon Laboratories Inc ^(a)	33,162		1,988		Industrial				16.83	%
Synaptics Inc ^(a)	27,752		1,446		Consumer, Non-cyclical				14.78	%
Teradyne Inc	161,305		3,757		Technology				12.35	%
		$	30,289		Consumer, Cyclical				11.59	%
Shipbuilding - 0.50%					Utilities				5.61	%
Huntington Ingalls Industries Inc	37,301		6,019		Basic Materials				4.81	%
					Energy				3.62	%
Software - 6.39%					Communications				2.68	%
ACI Worldwide Inc ^(a)	93,413		1,693		Investment Companies				2.18	%
Acxiom Corp ^(a)	61,713		1,454		Other Assets and Liabilities				0.12	%
Allscripts Healthcare Solutions Inc ^(a)	148,731		1,786		TOTAL NET ASSETS				100.00	%
ANSYS Inc ^(a)	69,533		6,352
Broadridge Financial Solutions Inc	94,295		6,097
Cadence Design Systems Inc ^(a)	233,063		5,962
CDK Global Inc	119,699		6,537
CommVault Systems Inc ^(a)	32,936		1,762
Fair Isaac Corp	24,598		2,968
j2 Global Inc	38,277		2,723
Jack Henry & Associates Inc	62,611		5,073
Manhattan Associates Inc ^(a)	57,086		2,891
MSCI Inc	75,441		6,049
PTC Inc ^(a)	91,647		4,348
Rackspace Hosting Inc ^(a)	85,251		2,723
SYNNEX Corp	23,142		2,373
Synopsys Inc ^(a)	120,653		7,156
Tyler Technologies Inc ^(a)	26,364		4,229
Ultimate Software Group Inc/The ^(a)	23,071		4,868
		$	77,044
Telecommunications - 1.25%
ARRIS International PLC ^(a)	152,012		4,223
Ciena Corp ^(a)	110,110		2,134
InterDigital Inc/PA	27,306		1,929
NeuStar Inc ^(a)	43,459		976
Plantronics Inc	26,456		1,368
Telephone & Data Systems Inc	74,167		1,916
ViaSat Inc ^(a)	36,150		2,554
		$	15,100
Transportation - 1.08%
Genesee & Wyoming Inc ^(a)	45,638		3,101
Kirby Corp ^(a)	42,936		2,531
Landstar System Inc	33,570		2,388
Old Dominion Freight Line Inc ^(a)	55,484		4,143
Werner Enterprises Inc	35,618		857
		$	13,020


Schedule of Investments
MidCap Value Fund I
October 31, 2016



COMMON STOCKS - 97.56%	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Advertising - 0.88%					Building Materials (continued)
Clear Channel Outdoor Holdings Inc	1,930	$	11		Cree Inc ^(a)		7,341	$	164
Interpublic Group of Cos Inc/The	438,729		9,823		Lennox International Inc		92		13
		$	9,834		Martin Marietta Materials Inc		194		36
Aerospace & Defense - 0.25%					Masco Corp		6,666		206
Harris Corp	5,802		518		Owens Corning		196,803		9,600
					USG Corp ^(a)		3,777		95
L-3 Communications Holdings Inc	14,251		1,951
Orbital ATK Inc	2,448		182		Vulcan Materials Co		291		33
Spirit AeroSystems Holdings Inc	3,659		184					$	10,220
		$	2,835		Chemicals - 2.80%
Agriculture - 1.75%					Agrium Inc		96,389		8,850
Archer-Daniels-Midland Co	417,927		18,209		Albemarle Corp		3,621		302
Bunge Ltd	19,515		1,210		Ashland Global Holdings Inc		33,810		3,778
		$	19,419		Cabot Corp		8,490		443
Airlines - 0.58%					Celanese Corp		21,804		1,590
Alaska Air Group Inc	1,689		122		CF Industries Holdings Inc		69,762		1,675
American Airlines Group Inc	89,738		3,643		Eastman Chemical Co		53,890		3,876
Copa Holdings SA	1,534		142		FMC Corp		17,648		828
JetBlue Airways Corp ^(a)	14,700		257		GCP Applied Technologies Inc ^(a)		3,580		93
United Continental Holdings Inc ^(a)	41,319		2,323		Huntsman Corp		9,117		154
					Ingevity Corp ^(a)		2,605		108
		$	6,487
					International Flavors & Fragrances Inc		39,710		5,193
Apparel - 0.01%
					Mosaic Co/The		102,595		2,414
Ralph Lauren Corp	1,717		168
					NewMarket Corp		48		19
					Platform Specialty Products Corp ^(a)		8,101		59
Automobile Manufacturers - 0.09%
					Westlake Chemical Corp		28,044		1,452
PACCAR Inc	19,110		1,050
					WR Grace & Co		5,276		353
Automobile Parts & Equipment - 0.97%								$	31,187
Adient plc ^(a)	3,137		143		Coal- 0.02	%
Allison Transmission Holdings Inc	32,514		953		CONSOL Energy Inc		10,172		172
BorgWarner Inc	258,882		9,278
Goodyear Tire & Rubber Co/The	8,587		249		Commercial Services - 2.13%
Lear Corp	1,128		138		AMERCO		105		34
		$	10,761		Aramark		7,558		281
					Booz Allen Hamilton Holding Corp		309,998		9,445
Banks - 4.20%					CoreLogic Inc/United States ^(a)		12,185		519
Associated Banc-Corp	6,626		135
					H&R Block Inc		7,261		167
Bank of Hawaii Corp	22,644		1,702		Herc Holdings Inc ^(a)		31,082		935
BankUnited Inc	37,235		1,085		Hertz Global Holdings Inc ^(a)		2,405		80
BOK Financial Corp	1,183		84		Live Nation Entertainment Inc ^(a)		2,569		71
Citizens Financial Group Inc	514,102		13,541
					LSC Communications Inc		6,541		158
Comerica Inc	8,221		428
					Macquarie Infrastructure Corp		2,410		197
Commerce Bancshares Inc/MO	23,683		1,180
					ManpowerGroup Inc		4,190		322
Cullen/Frost Bankers Inc	2,374		180
					Moody's Corp		565		57
East West Bancorp Inc	4,651		184
					Nielsen Holdings PLC		16,177		728
Fifth Third Bancorp	36,838		802		Quanta Services Inc ^(a)		361,226		10,386
First Horizon National Corp	52,827		814
					RR Donnelley & Sons Co		10,341		184
First Republic Bank/CA	913		68		United Rentals Inc ^(a)		1,253		95
Huntington Bancshares Inc/OH	46,811		496
KeyCorp	47,369		669					$	23,659
M&T Bank Corp	4,840		594		Computers - 3.60%
Northern Trust Corp	10,789		781		Amdocs Ltd		7,463		436
PacWest Bancorp	15,042		652		Brocade Communications Systems Inc		72,078		764
Popular Inc	13,554		492		Computer Sciences Corp		203,239		11,066
					Genpact Ltd ^(a)		1,283		30
Regions Financial Corp	95,153		1,019
Signature Bank/New York NY ^(a)	688		83		Hewlett Packard Enterprise Co		554,890		12,468
SunTrust Banks Inc	382,533		17,303		Leidos Holdings Inc		22,280		926
SVB Financial Group ^(a)	428		52		Lexmark International Inc		2,987		119
					Lumentum Holdings Inc ^(a)		5,360		180
Synovus Financial Corp	89,741		2,968
TCF Financial Corp	85,731		1,226		MAXIMUS Inc		129,173		6,725
Zions Bancorporation	6,494		209		NetApp Inc		86,417		2,933
					Teradata Corp ^(a)		15,490		418
		$	46,747
					Western Digital Corp		67,937		3,970
Beverages - 0.07%
Brown-Forman Corp - A Shares	128		6					$	40,035
Brown-Forman Corp - B Shares	660		31		Consumer Products - 0.62%
Molson Coors Brewing Co	7,220		749		Avery Dennison Corp		97,019		6,771
		$	786		Clorox Co/The		1,102		132
Biotechnology - 0.03%								$	6,903
Alnylam Pharmaceuticals Inc ^(a)	402		14		Cosmetics & Personal Care - 0.23%
Bio-Rad Laboratories Inc ^(a)	873		138		Avon Products Inc		105,240		689
Juno Therapeutics Inc ^(a)	250		6		Coty Inc ^(a)		13,911		320
United Therapeutics Corp ^(a)	1,322		159		Edgewell Personal Care Co ^(a)		20,873		1,574
		$	317					$	2,583
Building Materials - 0.92%					Distribution & Wholesale - 0.04%
Armstrong World Industries Inc ^(a)	1,956		73		Ingram Micro Inc		7,794		290
See accompanying notes					360


Schedule of Investments
MidCap Value Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Distribution & Wholesale (continued)					Engineering & Construction - 1.32%
WESCO International Inc ^(a)	2,077	$	113		AECOM ^(a)	6,545	$	182
		$	403		Chicago Bridge & Iron Co NV ADR	16,569		531
Diversified Financial Services - 1.62%					Fluor Corp	31,203		1,623
Affiliated Managers Group Inc ^(a)	223		30		Jacobs Engineering Group Inc ^(a)	230,790		11,904
Ally Financial Inc	46,771		846		KBR Inc	17,587		260
Ameriprise Financial Inc	3,523		311		SBA Communications Corp ^(a)	1,466		166
CIT Group Inc	93,669		3,403				$	14,666
E*TRADE Financial Corp ^(a)	9,037		254		Entertainment - 0.13%
FNF Group	13,519		485		Dolby Laboratories Inc	2,583		123
Invesco Ltd	307,232		8,630		Gaming and Leisure Properties Inc	35,078		1,151
Lazard Ltd	4,800		175		International Game Technology PLC	4,310		124
Legg Mason Inc	5,454		156		Regal Entertainment Group	2,789		60
LPL Financial Holdings Inc	3,140		97				$	1,458
Nasdaq Inc	5,703		365		Environmental Control - 0.91%
Navient Corp	14,548		186		Republic Services Inc	190,726		10,038
Raymond James Financial Inc	6,502		391		Stericycle Inc ^(a)	1,643		131
Santander Consumer USA Holdings Inc ^(a)	5,137		63				$	10,169
SLM Corp ^(a)	53,990		381
					Food - 2.79%
Synchrony Financial	66,022		1,888		ConAgra Foods Inc	4,742		228
T Rowe Price Group Inc	1,866		119		Flowers Foods Inc	592		9
TD Ameritrade Holding Corp	861		29		Hain Celestial Group Inc/The ^(a)	1,066		39
Waddell & Reed Financial Inc	9,460		149		Hormel Foods Corp	2,309		89
		$	17,958		Ingredion Inc	42,283		5,547
Electric - 6.13%					JM Smucker Co/The	5,143		675
AES Corp/VA	63,772		751		Kellogg Co	99,617		7,484
Alliant Energy Corp	313,318		11,922		Pilgrim's Pride Corp	2,090		46
Ameren Corp	25,372		1,268		Pinnacle Foods Inc	5,597		288
Avangrid Inc	2,320		91		Post Holdings Inc ^(a)	1,576		120
Calpine Corp ^(a)	248,214		2,954		Safeway, Inc. - CVR - Casa Ley ^(a),(b),(c)	86,307		—
CMS Energy Corp	13,679		577		Safeway, Inc. - CVR - Property Development	86,307		—
Consolidated Edison Inc	28,360		2,143		Centers ^(a),(b),(c)
DTE Energy Co	151,662		14,562		Sysco Corp	116,914		5,626
Edison International	10,216		751		TreeHouse Foods Inc ^(a)	1,557		136
Entergy Corp	45,310		3,338		Tyson Foods Inc	7,069		501
Eversource Energy	36,906		2,032		Whole Foods Market Inc	359,894		10,181
FirstEnergy Corp	148,362		5,087				$	30,969
Great Plains Energy Inc	15,307		435		Forest Products & Paper - 0.37%
Hawaiian Electric Industries Inc	4,477		132		Domtar Corp	16,706		601
MDU Resources Group Inc	19,988		524		International Paper Co	78,680		3,543
NRG Energy Inc	76,009		808				$	4,144
OGE Energy Corp	13,181		409		Gas - 1.54%
Pinnacle West Capital Corp	22,578		1,719		Atmos Energy Corp	139,090		10,346
PPL Corp	89,814		3,084		CenterPoint Energy Inc	191,834		4,374
Public Service Enterprise Group Inc	22,560		949		National Fuel Gas Co	7,927		415
SCANA Corp	6,199		454		NiSource Inc	10,379		241
WEC Energy Group Inc	18,530		1,106		Sempra Energy	8,066		864
Westar Energy Inc	7,012		402		UGI Corp	9,452		438
Xcel Energy Inc	304,245		12,641		Vectren Corp	8,810		444
		$	68,139				$	17,122
Electrical Components & Equipment - 1.03%					Hand & Machine Tools - 0.23%
AMETEK Inc	6,081		268		Kennametal Inc	36,289		1,027
Energizer Holdings Inc	8,197		381		Lincoln Electric Holdings Inc	1,492		99
Hubbell Inc	103,799		10,849		Regal Beloit Corp	2,094		124
		$	11,498		Snap-on Inc	1,004		155
Electronics - 6.07%					Stanley Black & Decker Inc	9,977		1,135
Agilent Technologies Inc	199,035		8,672				$	2,540
Arrow Electronics Inc ^(a)	9,617		587
					Healthcare - Products - 1.20%
Avnet Inc	189,560		7,952		Alere Inc ^(a)	2,953		132
Fitbit Inc ^(a)	1,465		19
					Bio-Techne Corp	4,860		505
Flex Ltd ^(a)	758,785		10,767
					Cooper Cos Inc/The	736		130
FLIR Systems Inc	322,781		10,626		CR Bard Inc	24,673		5,346
Garmin Ltd	8,963		434		DENTSPLY SIRONA Inc	102,597		5,906
Gentex Corp	150,926		2,552		Hill-Rom Holdings Inc	202		11
Jabil Circuit Inc	8,518		182		Patterson Cos Inc	4,603		197
Johnson Controls International plc	31,373		1,265		QIAGEN NV ^(a)	7,391		180
Keysight Technologies Inc ^(a)	380,883		12,493
					St Jude Medical Inc	2,749		214
National Instruments Corp	1,121		32		Teleflex Inc	1,824		261
PerkinElmer Inc	196,908		10,021		VWR Corp ^(a)	3,081		85
Trimble Inc ^(a)	66,309		1,833
					Zimmer Biomet Holdings Inc	3,919		413
		$	67,435				$	13,380
Energy - Alternate Sources - 0.01%					Healthcare - Services - 4.34%

First Solar Inc(a)	3,227		131		Acadia Healthcare Co Inc ^(a)	1,982		71
					Amsurg Corp ^(a)	988		59
See accompanying notes					361


Schedule of Investments
MidCap Value Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Healthcare - Services (continued)					Insurance (continued)
Brookdale Senior Living Inc ^(a)	16,646	$	240		XL Group Ltd	6,006	$	208
Centene Corp ^(a)	1,427		89				$	93,398
DaVita Inc ^(a)	18,574		1,089		Internet - 0.48%
Envision Healthcare Holdings Inc ^(a)	1,310		26		FireEye Inc ^(a)	4,731		55
HCA Holdings Inc ^(a)	131,900		10,094		IAC/InterActiveCorp	618		40
Laboratory Corp of America Holdings ^(a)	2,748		344		Liberty Ventures ^(a)	14,879		594
LifePoint Health Inc ^(a)	1,697		102		Pandora Media Inc ^(a)	1,255		14
MEDNAX Inc ^(a)	165,489		10,136		Symantec Corp	138,204		3,459
Quest Diagnostics Inc	203,752		16,594		Twitter Inc ^(a)	2,359		42
Quintiles IMS Holdings Inc ^(a)	1,889		136		Yelp Inc ^(a)	31,953		1,044
Quorum Health Corp ^(a)	8,164		33		Zillow Group Inc - A Shares ^(a)	642		21
Universal Health Services Inc	75,878		9,159		Zillow Group Inc - C Shares ^(a)	1,285		43
WellCare Health Plans Inc ^(a)	630		72				$	5,312
		$	48,244		Iron & Steel - 0.98%
Holding Companies - Diversified - 0.11%					Nucor Corp	15,339		749
Leucadia National Corp	68,560		1,280		Reliance Steel & Aluminum Co	140,788		9,684
					Steel Dynamics Inc	11,985		329
Home Builders - 0.95%					United States Steel Corp	6,999		135
CalAtlantic Group Inc	2,755		89				$	10,897
DR Horton Inc	8,525		246		Leisure Products & Services - 0.07%
Lennar Corp - A Shares	2,814		117		Brunswick Corp/DE	1,141		50
Lennar Corp - B Shares	468		16		Norwegian Cruise Line Holdings Ltd ^(a)	4,689		182
NVR Inc ^(a)	6,413		9,767
					Royal Caribbean Cruises Ltd	5,448		419
PulteGroup Inc	12,365		230		Vista Outdoor Inc ^(a)	2,132		82
Toll Brothers Inc ^(a)	3,534		97
							$	733
		$	10,562		Lodging - 0.16%
Home Furnishings - 0.07%					Choice Hotels International Inc	22,506		1,091
Harman International Industries Inc	1,234		99		Extended Stay America Inc	3,096		44
Whirlpool Corp	4,797		718		Hilton Worldwide Holdings Inc	2,026		46
		$	817		Hyatt Hotels Corp ^(a)	1,088		55
Housewares - 0.48%					Marriott International Inc/MD	2,552		175
Scotts Miracle-Gro Co/The	60,364		5,317		MGM Resorts International ^(a)	13,957		365
Tupperware Brands Corp	650		39		Wynn Resorts Ltd	220		21
		$	5,356				$	1,797
Insurance - 8.40%					Machinery - Construction & Mining - 0.06%
Aflac Inc	180,642		12,441		Oshkosh Corp	9,845		526
Alleghany Corp ^(a)	27,820		14,361		Terex Corp	4,555		109
Allied World Assurance Co Holdings AG	3,900		168				$	635
American Financial Group Inc/OH	133,034		9,911		Machinery - Diversified - 2.20%
American National Insurance Co	6,285		737		AGCO Corp	3,028		155
AmTrust Financial Services Inc	3,892		103		Cummins Inc	9,040		1,155
Arch Capital Group Ltd ^(a)	11,541		899		Flowserve Corp	2,060		87
Arthur J Gallagher & Co	43,674		2,106		IDEX Corp	4,697		406
Aspen Insurance Holdings Ltd	41,914		2,022		Nordson Corp	40,899		4,095
Assurant Inc	1,995		161		Rockwell Automation Inc	92,782		11,108
Assured Guaranty Ltd	14,276		427		Roper Technologies Inc	1,579		274
Axis Capital Holdings Ltd	6,103		348		Xylem Inc/NY	147,939		7,150
Brown & Brown Inc	12,601		464		Zebra Technologies Corp ^(a)	455		30
Cincinnati Financial Corp	7,596		538				$	24,460
CNA Financial Corp	1,489		54		Media - 2.35%
Endurance Specialty Holdings Ltd	2,063		190		CBS Corp	201,945		11,434
Erie Indemnity Co	2,210		226		Discovery Communications Inc - A Shares ^(a)	740		19
Everest Re Group Ltd	2,285		465		Discovery Communications Inc - C Shares ^(a)	528		13
First American Financial Corp	4,770		186		John Wiley & Sons Inc	2,033		105
(a)
Genworth Financial Inc	79,590		329		Liberty Broadband Corp - A Shares ^(a)	11,180		727
Hanover Insurance Group Inc/The	34,792		2,651		Liberty Broadband Corp - C Shares ^(a)	6,276		419
Hartford Financial Services Group Inc/The	51,304		2,263		Liberty Media Corp-Liberty Braves ^(a)	5,041		84
Lincoln National Corp	25,963		1,274		Liberty Media Corp-Liberty SiriusXM ^(a)	4,026		134
Loews Corp	9,261		399		Liberty Media Corp-Liberty SiriusXM ^(a)	5,939		197
Markel Corp ^(a)	7,110		6,239
					News Corp - A Shares	12,317		149
Marsh & McLennan Cos Inc	130,970		8,302		News Corp - B Shares	5,659		70
Mercury General Corp	14,133		770		TEGNA Inc	592,042		11,616
Old Republic International Corp	82,967		1,399		Tribune Media Co	3,110		101
ProAssurance Corp	55,754		2,972		Viacom Inc - A Shares	265		11
Progressive Corp/The	49,508		1,560		Viacom Inc - B Shares	26,533		997
Reinsurance Group of America Inc	3,621		391				$	26,076
RenaissanceRe Holdings Ltd	4,488		558
					Metal Fabrication & Hardware - 0.01%
Torchmark Corp	6,500		412		Timken Co/The	3,536		117
Unum Group	12,639		447		Valmont Industries Inc	300		38
Validus Holdings Ltd	37,869		1,935
							$	155
Voya Financial Inc	82,569		2,523
White Mountains Insurance Group Ltd	206		171		Mining - 0.36%
					Alcoa Corp	14,209		408
WR Berkley Corp	223,962		12,788		Freeport-McMoRan Inc ^(a)	150,921		1,688
See accompanying notes					362


Schedule of Investments
MidCap Value Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Mining (continued)					Oil & Gas Services (continued)
Newmont Mining Corp	42,743	$	1,583		Weatherford International PLC ^(a)	233,276	$	1,124
Royal Gold Inc	2,563		176				$	21,334
Tahoe Resources Inc	12,984		157		Packaging & Containers - 1.61%
		$	4,012		Bemis Co Inc	32,248		1,571
Miscellaneous Manufacturers - 4.27%					Crown Holdings Inc ^(a)	281,638		15,279
AptarGroup Inc	170,223		12,161		Graphic Packaging Holding Co	4,921		61
Carlisle Cos Inc	8,473		889		Sonoco Products Co	4,445		224
Colfax Corp ^(a)	4,323		137		WestRock Co	17,530		810
Crane Co	7,362		501				$	17,945
Donaldson Co Inc	898		33		Pharmaceuticals - 1.32%
Dover Corp	7,114		476		Cardinal Health Inc	156,238		10,732
Ingersoll-Rand PLC	221,442		14,901		Endo International PLC ^(a)	8,511		160
ITT Inc	4,002		141		Mallinckrodt PLC ^(a)	21,858		1,295
Parker-Hannifin Corp	143,363		17,597		Mead Johnson Nutrition Co	3,870		289
Pentair PLC	5,378		296		OPKO Health Inc ^(a)	1,113		10
Textron Inc	6,014		241		Perrigo Co PLC	25,174		2,095
Trinity Industries Inc	6,885		147		Premier Inc ^(a)	1,358		43
		$	47,520				$	14,624
Office & Business Equipment - 0.15%					Pipelines - 0.22%
Xerox Corp	168,157		1,643		Cheniere Energy Inc ^(a)	6,455		243
					Williams Cos Inc/The	75,652		2,209
Oil & Gas - 5.79%							$	2,452
Antero Resources Corp ^(a)	7,932		210
					Real Estate - 0.02%
Cabot Oil & Gas Corp	4,429		92		Jones Lang LaSalle Inc	1,896		184
Chesapeake Energy Corp ^(a)	23,876		132
Cimarex Energy Co	79,642		10,284		REITS - 7.29%
Cobalt International Energy Inc ^(a)	88,575		84
					AGNC Investment Corp	71,913		1,443
Concho Resources Inc ^(a)	6,620		840
					Alexandria Real Estate Equities Inc	2,914		314
Continental Resources Inc/OK ^(a)	2,278		111		American Campus Communities Inc	6,902		360
Devon Energy Corp	291,933		11,061		American Homes 4 Rent	7,618		161
Diamond Offshore Drilling Inc	2,703		45		Annaly Capital Management Inc	177,221		1,836
Diamondback Energy Inc ^(a)	1,905		174		Apartment Investment & Management Co	5,953		262
Energen Corp	188,232		9,436		Apple Hospitality REIT Inc	7,701		139
Ensco PLC	118,365		925		AvalonBay Communities Inc	11,403		1,952
EQT Corp	25,681		1,695		Boston Properties Inc	6,912		833
Gulfport Energy Corp ^(a)	58,675		1,415
					Brandywine Realty Trust	7,717		120
Helmerich & Payne Inc	5,631		355		Brixmor Property Group Inc	8,723		222
Hess Corp	58,804		2,820		Camden Property Trust	24,059		1,959
HollyFrontier Corp	54,131		1,351		Care Capital Properties Inc	15,488		411
Kosmos Energy Ltd ^(a)	7,212		38		CBL & Associates Properties Inc	33,842		362
Laredo Petroleum Inc ^(a)	6,698		80
					Chimera Investment Corp	112,353		1,760
Marathon Oil Corp	167,733		2,211		Columbia Property Trust Inc	5,803		122
Marathon Petroleum Corp	33,971		1,481		Communications Sales & Leasing Inc	5,194		148
Murphy Oil Corp	74,729		1,933		Corporate Office Properties Trust	4,640		124
Murphy USA Inc ^(a)	723		50
					Corrections Corp of America	69,007		998
Nabors Industries Ltd	12,437		148		CubeSmart	2,738		71
Newfield Exploration Co ^(a)	4,795		195
					CyrusOne Inc	487		22
Noble Corp plc	10,583		52		DCT Industrial Trust Inc	4,194		196
Noble Energy Inc	122,167		4,211		DDR Corp	685,170		10,477
Parsley Energy Inc ^(a)	4,786		157
					Digital Realty Trust Inc	1,424		133
Patterson-UTI Energy Inc	6,558		147		Douglas Emmett Inc	6,250		228
PBF Energy Inc	4,149		90		Duke Realty Corp	48,351		1,265
PDC Energy Inc ^(a)	166,871		10,234
					Empire State Realty Trust Inc	2,878		56
QEP Resources Inc	10,558		170		EPR Properties	2,887		210
Range Resources Corp	11,119		376		Equity Commonwealth ^(a)	30,755		929
Rice Energy Inc ^(a)	5,434		120
					Equity One Inc	4,288		122
Rowan Cos Plc	33,116		440		Essex Property Trust Inc	1,250		267
SM Energy Co	3,726		125		Forest City Realty Trust Inc	10,342		223
Tesoro Corp	9,279		789		General Growth Properties Inc	51,898		1,295
Transocean Ltd ^(a)	14,958		144
					HCP Inc	90,786		3,109
WPX Energy Inc ^(a)	14,730		160		Healthcare Trust of America Inc	1,664		51
		$	64,381		Highwoods Properties Inc	4,251		211
Oil & Gas Services - 1.92%					Hospitality Properties Trust	44,667		1,223
Baker Hughes Inc	19,816		1,098		Host Hotels & Resorts Inc	141,527		2,191
Dril-Quip Inc ^(a)	1,781		85		Kilroy Realty Corp	2,937		211
FMC Technologies Inc ^(a)	86,193		2,782		Kimco Realty Corp	110,682		2,945
Frank's International NV	1,703		19		Liberty Property Trust	75,996		3,072
National Oilwell Varco Inc	76,086		2,442		Life Storage Inc	787		63
Oceaneering International Inc	34,484		821		Macerich Co/The	49,467		3,502
RPC Inc	3,166		55		MFA Financial Inc	491,122		3,590
Superior Energy Services Inc	735,205		10,410		Mid-America Apartment Communities Inc	5,858		543
Targa Resources Corp	56,906		2,498		National Retail Properties Inc	130,522		5,955
					Omega Healthcare Investors Inc	23,565		750

See accompanying notes					363


Schedule of Investments
MidCap Value Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)			Shares Held	Value (000's)
REITS (continued)					Semiconductors (continued)
Outfront Media Inc	4,887	$	105		Teradyne Inc			127,833	$	2,977
Paramount Group Inc	8,240		128		Xilinx Inc			41,534		2,113
Piedmont Office Realty Trust Inc	7,052		144						$	36,346
Post Properties Inc	41,494		2,730		Shipbuilding - 0.01%
Prologis Inc	24,445		1,275		Huntington Ingalls Industries Inc			737		119
Rayonier Inc ^(b)	5,883		158
Realty Income Corp	11,502		681		Software - 2.17%
Regency Centers Corp	43,066		3,104		Akamai Technologies Inc ^(a)			612		43
Retail Properties of America Inc	11,195		174		Allscripts Healthcare Solutions Inc ^(a)			7,887		95
Senior Housing Properties Trust	24,089		512		ANSYS Inc ^(a)			19,401		1,772
SL Green Realty Corp	3,155		310		Autodesk Inc ^(a)			1,225		89
Spirit Realty Capital Inc	27,710		330		CA Inc			31,794		978
Starwood Property Trust Inc	110,894		2,467		CommerceHub Inc - Series A ^(a)			447		7
STORE Capital Corp	6,990		191		CommerceHub Inc - Series C ^(a)			894		13
Sun Communities Inc	2,848		219		Donnelley Financial Solutions Inc ^(a)			6,321		135
Tanger Factory Outlet Centers Inc	962		33		Dun & Bradstreet Corp/The			6,522		814
Two Harbors Investment Corp	82,096		684		Fidelity National Information Services Inc			142,469		10,531
UDR Inc	16,159		565		Nuance Communications Inc ^(a)			130,063		1,824
Ventas Inc	11,220		760		PTC Inc ^(a)			2,031		96
VEREIT Inc	359,913		3,384		SS&C Technologies Holdings Inc			432		14
Vornado Realty Trust	16,585		1,538		Synopsys Inc ^(a)			128,733		7,635
Weingarten Realty Investors	5,378		195		Twilio Inc ^(a)			100		3
Welltower Inc	31,372		2,150		Zynga Inc ^(a)			29,554		83
Weyerhaeuser Co	23,943		716						$	24,132
WP Carey Inc	33,369		2,027		Telecommunications - 1.52%
		$	81,016		ARRIS International PLC ^(a)			15,784		439
Retail - 2.40%					CenturyLink Inc			116,634		3,100
AutoNation Inc ^(a)	1,721		75		EchoStar Corp ^(a)			2,092		98
Bed Bath & Beyond Inc	6,991		283		Frontier Communications Corp			48,330		194
Best Buy Co Inc	13,314		518		Juniper Networks Inc			60,655		1,598
Burlington Stores Inc ^(a)	2,057		154		Level 3 Communications Inc ^(a)			9,431		530
Cabela's Inc ^(a)	1,900		117		Motorola Solutions Inc			143,489		10,414
Coach Inc	51,185		1,836		Sprint Corp ^(a)			43,893		270
CST Brands Inc	3,229		155		Telephone & Data Systems Inc			3,965		102
Dick's Sporting Goods Inc	943		52		United States Cellular Corp ^(a)			556		20
Dillard's Inc	892		55		Viavi Solutions Inc ^(a)			16,470		117
Foot Locker Inc	1,558		104						$	16,882
GameStop Corp	4,431		107		Textiles - 0.01%
Gap Inc/The	55,406		1,529		Mohawk Industries Inc ^(a)			857		158
Genuine Parts Co	12,530		1,135
JC Penney Co Inc ^(a)	13,419		115
					Toys, Games & Hobbies - 0.11%
Kohl's Corp	17,923		784		Mattel Inc			38,521		1,215
L Brands Inc	6,424		464
Liberty Interactive Corp QVC Group ^(a)	6,898		127
					Transportation - 1.30%
Macy's Inc	72,503		2,646		Expeditors International of Washington Inc			1,708		88
Michaels Cos Inc/The ^(a)	1,233		29		Genesee & Wyoming Inc ^(a)			2,490		169
MSC Industrial Direct Co Inc	2,187		159		Kansas City Southern			6,284		552
Nu Skin Enterprises Inc	1,635		101		Kirby Corp ^(a)			2,231		132
Penske Automotive Group Inc	1,748		78		Old Dominion Freight Line Inc ^(a)			178,648		13,341
PVH Corp	3,931		420		Ryder System Inc			2,341		162
Signet Jewelers Ltd	2,245		183						$	14,444
Staples Inc	167,502		1,240		Water- 0.30		%
Tiffany & Co	190,259		13,969		American Water Works Co Inc			8,400		622
Urban Outfitters Inc ^(a)	1,097		37
					Aqua America Inc			87,561		2,688
Wendy's Co/The	4,265		46						$	3,310
World Fuel Services Corp	3,201		129		TOTAL COMMON STOCKS				$	1,084,776
		$	26,647
					INVESTMENT COMPANIES - 1.85%			Shares Held	Value (000's)
Savings & Loans - 0.32%					Money Market Funds - 1.85%
New York Community Bancorp Inc	72,082		1,035		BlackRock Liquidity Funds FedFund Portfolio			2,058,058		2,058
People's United Financial Inc	149,764		2,432		Cash Account Trust - Government & Agency			595,617		596
TFS Financial Corp	2,671		48		Portfolio - Government Cash Managed
		$	3,515		First American Government Obligations Fund			17,888,877		17,889
Semiconductors - 3.27%									$	20,543
Analog Devices Inc	13,843		888
IPG Photonics Corp ^(a)	324		31		TOTAL INVESTMENT COMPANIES				$	20,543
					Total Investments				$	1,105,319
KLA-Tencor Corp	147,626		11,088
					Other Assets and Liabilities - 0.59%				$	6,508
Lam Research Corp	2,042		198
Linear Technology Corp	7,476		449		TOTAL NET ASSETS - 100.00%				$	1,111,827
Marvell Technology Group Ltd	58,227		758
Micron Technology Inc ^(a)	108,196		1,857
ON Semiconductor Corp ^(a)	743,848		8,681		(a)	Non-Income Producing Security
Qorvo Inc ^(a)	4,514		251		(b)	Security is Illiquid. At the end of the period, the value of these securities
						totaled $158 or 0.01% of net assets.
Skyworks Solutions Inc	91,694		7,055

See accompanying notes					364


Schedule of Investments
MidCap Value Fund III
October 31, 2016



COMMON STOCKS - 96.01%	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Advertising - 0.00%					Building Materials - 3.06%
Clear Channel Outdoor Holdings Inc	2,069	$	12		Armstrong World Industries Inc ^(a)		2,098	$	79
					Cree Inc ^(a)		2,882		64
Aerospace & Defense - 2.29%					CRH PLC ADR		478,354		15,451
Harris Corp	6,227		556		Lennox International Inc		101		15
L-3 Communications Holdings Inc	3,863		529		Martin Marietta Materials Inc		208		38
Orbital ATK Inc	105,227		7,824		Masco Corp		7,153		221
Spirit AeroSystems Holdings Inc	374,228		18,846		Owens Corning		429,526		20,953
		$	27,755		USG Corp ^(a)		4,108		103
Agriculture - 1.47%					Vulcan Materials Co		312		35
Bunge Ltd	4,822		299					$	36,959
Reynolds American Inc	316,953		17,458		Chemicals - 4.62%
		$	17,757		Albemarle Corp		3,883		324
Airlines - 0.16%					Ashland Global Holdings Inc		2,155		241
					Axalta Coating Systems Ltd ^(a)		281,400		7,069
Alaska Air Group Inc	1,811		131
American Airlines Group Inc	18,319		744		Cabot Corp		238,337		12,427
Copa Holdings SA	1,647		152		Celanese Corp		84,641		6,172
JetBlue Airways Corp ^(a)	15,777		276		CF Industries Holdings Inc		8,110		195
United Continental Holdings Inc ^(a)	11,623		653		Eastman Chemical Co		94,361		6,785
		$	1,956		FMC Corp		331,710		15,554
Apparel - 1.32%					Huntsman Corp		9,781		166
Hanesbrands Inc	612,345		15,737		Mosaic Co/The		12,142		286
Ralph Lauren Corp	1,852		182		NewMarket Corp		52		21
					Platform Specialty Products Corp ^(a)		8,691		63
		$	15,919
					Westlake Chemical Corp		123,940		6,418
Automobile Manufacturers - 0.05%
					WR Grace & Co		1,550		104
PACCAR Inc	10,840		595
								$	55,825
Automobile Parts & Equipment - 0.58%					Coal- 0.01	%
Adient plc ^(a)	37,651		1,713		CONSOL Energy Inc		10,914		185
Allison Transmission Holdings Inc	6,806		199
BorgWarner Inc	9,749		350		Commercial Services - 2.05%
Goodyear Tire & Rubber Co/The	9,215		268		AMERCO		113		36
Lear Corp	36,211		4,446		Aramark		8,113		302
		$	6,976		Booz Allen Hamilton Holding Corp		269		8
					CoreLogic Inc/United States ^(a)		1,586		68
Banks - 6.26%
					Equifax Inc		57,900		7,178
Associated Banc-Corp	7,110		144
					H&R Block Inc		7,840		180
Bank of Hawaii Corp	2,093		157		Herc Holdings Inc ^(a)		1,043		31
BankUnited Inc	4,702		137		Hertz Global Holdings Inc ^(a)		2,580		86
BOK Financial Corp	1,269		90		Live Nation Entertainment Inc ^(a)		2,756		76
Capital One Financial Corp	224,395		16,614
					LSC Communications Inc		902		22
Citizens Financial Group Inc	17,158		452
					Macquarie Infrastructure Corp		2,598		213
Comerica Inc	8,824		460
					ManpowerGroup Inc		3,917		301
Commerce Bancshares Inc/MO	70,687		3,522
					Moody's Corp		605		61
Cullen/Frost Bankers Inc	2,548		194
					Nielsen Holdings PLC		2,734		123
East West Bancorp Inc	79,987		3,160		Quanta Services Inc ^(a)		265,686		7,638
Fifth Third Bancorp	540,500		11,761
					RR Donnelley & Sons Co		1,817		32
First Horizon National Corp	11,058		170
					Total System Services Inc		168,122		8,386
First Republic Bank/CA	76,579		5,700		United Rentals Inc ^(a)		1,362		103
Huntington Bancshares Inc/OH	50,242		533
KeyCorp	357,241		5,044					$	24,844
M&T Bank Corp	5,190		637		Computers - 1.64%
Northern Trust Corp	7,184		520		Amdocs Ltd		262,920		15,368
PacWest Bancorp	4,112		179		Brocade Communications Systems Inc		20,119		213
Popular Inc	4,948		180		Computer Sciences Corp		4,813		262
Regions Financial Corp	64,208		688		Leidos Holdings Inc		67,094		2,789
Signature Bank/New York NY ^(a)	747		90		Lexmark International Inc		3,204		127
SunTrust Banks Inc	435,439		19,695		NetApp Inc		15,141		514
SVB Financial Group ^(a)	458		56		Western Digital Corp		9,779		572
TCF Financial Corp	7,930		113					$	19,845
Valley National Bancorp	522,391		5,151		Consumer Products - 0.72%
Zions Bancorporation	6,967		224		Avery Dennison Corp		122,143		8,524
		$	75,671		Clorox Co/The		1,182		142
Beverages - 0.64%								$	8,666
Brown-Forman Corp - A Shares	137		7		Cosmetics & Personal Care - 0.04%
					Coty Inc ^(a)		14,931		343
Brown-Forman Corp - B Shares	386		18
					Edgewell Personal Care Co ^(a)		2,626		198
Coca-Cola European Partners PLC	178,700		6,869
Molson Coors Brewing Co	7,748		804					$	541
		$	7,698		Distribution & Wholesale - 0.76%
Biotechnology - 0.03%					Ingram Micro Inc		242,660		9,027
Alnylam Pharmaceuticals Inc ^(a)	430		15		WESCO International Inc ^(a)		2,228		121
Bio-Rad Laboratories Inc ^(a)	936		148					$	9,148
Juno Therapeutics Inc ^(a)	247		6		Diversified Financial Services - 4.81%
United Therapeutics Corp ^(a)	1,414		170		Affiliated Managers Group Inc ^(a)		240		32
		$	339		Ally Financial Inc		15,399		278
See accompanying notes					366


Schedule of Investments
MidCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held		Value(000	's)
Diversified Financial Services (continued)					Engineering & Construction (continued)
Ameriprise Financial Inc	106,209	$	9,388		SBA Communications Corp ^(a)		1,572	$	178
CIT Group Inc	9,700		352					$	12,903
Discover Financial Services	258,096		14,539		Entertainment - 1.03%
E*TRADE Financial Corp ^(a)	9,691		273		Dolby Laboratories Inc		2,771		132
FNF Group	339,310		12,185		International Game Technology PLC		223,618		6,422
Invesco Ltd	11,872		333		Regal Entertainment Group		2,992		64
Lazard Ltd	5,178		189		SeaWorld Entertainment Inc		416,118		5,830
Legg Mason Inc	4,748		136					$	12,448
LPL Financial Holdings Inc	3,369		104		Environmental Control - 0.05%
Nasdaq Inc	6,117		391		Republic Services Inc		11,733		617
Navient Corp	878,852		11,232		Stericycle Inc ^(a)		158		13
Raymond James Financial Inc	6,978		420					$	630
Santander Consumer USA Holdings Inc ^(a)	5,504		67
					Food- 2.40	%
SLM Corp ^(a)	986,601		6,955
					ConAgra Foods Inc		5,088		245
Synchrony Financial	40,536		1,159		Flowers Foods Inc		634		10
T Rowe Price Group Inc	1,995		128		Hain Celestial Group Inc/The ^(a)		1,144		42
TD Ameritrade Holding Corp	923		32		Hormel Foods Corp		2,477		95
		$	58,193		Ingredion Inc		62,390		8,184
Electric - 5.34%					JM Smucker Co/The		32,519		4,270
AES Corp/VA	39,006		459		Kellogg Co		661		50
Alliant Energy Corp	12,117		461		Pilgrim's Pride Corp		2,242		49
Ameren Corp	12,926		646		Pinnacle Foods Inc		6,006		309
Avangrid Inc	2,488		98		Post Holdings Inc ^(a)		1,691		129
Calpine Corp ^(a)	15,927		190		Safeway, Inc. - CVR - Casa Ley ^(a),(b),(c)		8,276		—
CMS Energy Corp	14,682		619		Safeway, Inc. - CVR - Property Development		8,276		—
Consolidated Edison Inc	14,725		1,112		Centers ^(a),(b),(c)
DTE Energy Co	55,164		5,296		TreeHouse Foods Inc ^(a)		1,670		146
Edison International	95,964		7,052		Tyson Foods Inc		215,086		15,238
Entergy Corp	9,355		689		Whole Foods Market Inc		9,200		260
Eversource Energy	11,020		607					$	29,027
FirstEnergy Corp	14,768		506		Forest Products & Paper - 0.52%
Great Plains Energy Inc	6,894		196		Domtar Corp		148,140		5,326
Hawaiian Electric Industries Inc	4,801		142		International Paper Co		20,350		916
MDU Resources Group Inc	361,541		9,477					$	6,242
NRG Energy Inc	14,045		149
					Gas- 2.32	%
OGE Energy Corp	136,151		4,226		Atmos Energy Corp		127,875		9,513
Pinnacle West Capital Corp	151,441		11,529		CenterPoint Energy Inc		724,275		16,514
PPL Corp	23,558		809		National Fuel Gas Co		3,282		172
Public Service Enterprise Group Inc	17,565		739		NiSource Inc		11,140		259
SCANA Corp	6,548		480		Sempra Energy		8,674		929
WEC Energy Group Inc	15,123		903		UGI Corp		10,145		469
Westar Energy Inc	7,526		431		Vectren Corp		3,700		186
Xcel Energy Inc	428,078		17,787
								$	28,042
		$	64,603
					Hand & Machine Tools - 2.53%
Electrical Components & Equipment - 0.04%					Lincoln Electric Holdings Inc		1,279		84
AMETEK Inc	6,521		287		Regal Beloit Corp		2,247		133
Energizer Holdings Inc	1,870		87		Snap-on Inc		1,077		166
Hubbell Inc	678		71		Stanley Black & Decker Inc		265,901		30,270
		$	445					$	30,653
Electronics - 1.45%					Healthcare - Products - 0.16%
Agilent Technologies Inc	11,974		522		Alere Inc ^(a)		3,168		142
Arrow Electronics Inc ^(a)	4,936		301
					Cooper Cos Inc/The		790		139
Avnet Inc	4,455		187
Fitbit Inc ^(a)	1,572		21		DENTSPLY SIRONA Inc		7,975		459
					Hill-Rom Holdings Inc		217		12
FLIR Systems Inc	6,522		215		QIAGEN NV ^(a)		7,925		193
Garmin Ltd	3,887		188		St Jude Medical Inc		2,950		230
Gentex Corp	4,955		84		Teleflex Inc		1,958		280
Jabil Circuit Inc	9,138		195		VWR Corp ^(a)		3,306		91
Johnson Controls International plc	376,508		15,181
Keysight Technologies Inc ^(a)	9,008		295		Zimmer Biomet Holdings Inc		4,206		443
								$	1,989
National Instruments Corp	1,138		32
					Healthcare - Services - 2.79%
PerkinElmer Inc	4,724		240		Acadia Healthcare Co Inc ^(a)		2,126		76
Trimble Inc ^(a)	1,808		50
					Amsurg Corp ^(a)		1,060		63
		$	17,511		Brookdale Senior Living Inc ^(a)		8,272		119
Energy - Alternate Sources - 0.01%					Centene Corp ^(a)		1,530		96
First Solar Inc ^(a)	3,462		140
					Cigna Corp		137,947		16,392
					DaVita Inc ^(a)		3,525		207
Engineering & Construction - 1.07%					Envision Healthcare Holdings Inc ^(a)		1,405		28
AECOM ^(a)	7,022		196
					Laboratory Corp of America Holdings ^(a)		92,949		11,651
Chicago Bridge & Iron Co NV ADR	4,944		158		LifePoint Health Inc ^(a)		1,821		109
Fluor Corp	7,298		380		MEDNAX Inc ^(a)		936		57
Jacobs Engineering Group Inc ^(a)	55,538		2,864
					Quest Diagnostics Inc		7,043		574
KBR Inc	616,241		9,127		Quintiles IMS Holdings Inc ^(a)		2,027		145
See accompanying notes					367


Schedule of Investments
MidCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Healthcare - Services (continued)					Iron & Steel (continued)
Universal Health Services Inc	2,230	$	269		United States Steel Corp	7,508	$	145
WellCare Health Plans Inc ^(a)	34,675		3,936				$	6,546
		$	33,722		Leisure Products & Services - 2.88%
Holding Companies - Diversified - 0.02%					Brunswick Corp/DE	923		40
Leucadia National Corp	11,419		213		Norwegian Cruise Line Holdings Ltd ^(a)	431,992		16,791
					Royal Caribbean Cruises Ltd	233,649		17,961
Home Builders - 0.38%					Vista Outdoor Inc ^(a)	2,288		89
CalAtlantic Group Inc	2,955		95				$	34,881
DR Horton Inc	139,150		4,012		Lodging - 0.07%
Lennar Corp - A Shares	3,011		125		Choice Hotels International Inc	676		33
Lennar Corp - B Shares	501		17		Extended Stay America Inc	3,318		48
PulteGroup Inc	13,271		247		Hilton Worldwide Holdings Inc	2,172		49
Toll Brothers Inc ^(a)	3,789		104		Hyatt Hotels Corp ^(a)	1,167		59
		$	4,600		Marriott International Inc/MD	2,737		188
Home Furnishings - 1.25%					MGM Resorts International ^(a)	14,967		392
Harman International Industries Inc	1,324		106		Wynn Resorts Ltd	235		22
Whirlpool Corp	100,208		15,013				$	791
		$	15,119		Machinery - Construction & Mining - 0.03%
Insurance - 7.08%					Oshkosh Corp	3,609		193
Alleghany Corp ^(a)	516		266		Terex Corp	4,887		117
Allied World Assurance Co Holdings AG	4,184		180				$	310
American Financial Group Inc/OH	4,533		338		Machinery - Diversified - 1.16%
American National Insurance Co	446		52		AGCO Corp	3,249		166
AmTrust Financial Services Inc	4,176		110		BWX Technologies Inc	85,200		3,342
Arch Capital Group Ltd ^(a)	6,268		489		CNH Industrial NV	721,598		5,614
Arthur J Gallagher & Co	4,542		219		Cummins Inc	32,334		4,133
Aspen Insurance Holdings Ltd	123,677		5,968		Flowserve Corp	1,758		75
Assurant Inc	2,152		173		IDEX Corp	953		82
Assured Guaranty Ltd	143,346		4,285		Rockwell Automation Inc	930		111
Axis Capital Holdings Ltd	6,002		342		Roper Technologies Inc	1,693		293
Brown & Brown Inc	5,218		192		Xylem Inc/NY	2,981		144
Cincinnati Financial Corp	8,046		570		Zebra Technologies Corp ^(a)	489		32
CNA Financial Corp	1,598		58				$	13,992
Endurance Specialty Holdings Ltd	2,213		204		Media - 1.35%
Erie Indemnity Co	393		40		Discovery Communications Inc - A Shares ^(a)	743		19
Everest Re Group Ltd	66,450		13,524		Discovery Communications Inc - C Shares ^(a)	567		14
First American Financial Corp	5,117		200		John Wiley & Sons Inc	2,179		113
Hanover Insurance Group Inc/The	24,368		1,857		Liberty Broadband Corp - A Shares ^(a)	1,247		81
Hartford Financial Services Group Inc/The	13,560		598		Liberty Broadband Corp - C Shares ^(a)	5,373		358
Lincoln National Corp	10,232		502		Liberty Media Corp-Liberty SiriusXM ^(a)	6,369		211
Loews Corp	9,717		418		Liberty Media Corp-Liberty SiriusXM ^(a)	4,325		144
Markel Corp ^(a)	471		413
					Meredith Corp	145,903		6,617
Mercury General Corp	1,422		77		News Corp - A Shares	292,206		3,542
Old Republic International Corp	343,073		5,784		News Corp - B Shares	6,047		75
ProAssurance Corp	2,514		134		Scripps Networks Interactive Inc	75,000		4,827
Progressive Corp/The	18,253		575		TEGNA Inc	10,142		199
Reinsurance Group of America Inc	106,886		11,529		Tribune Media Co	3,337		109
RenaissanceRe Holdings Ltd	2,660		331		Viacom Inc - A Shares	291		12
Torchmark Corp	6,973		442		Viacom Inc - B Shares	1,385		52
Unum Group	273,596		9,685				$	16,373
Validus Holdings Ltd	3,635		186		Metal Fabrication & Hardware - 0.01%
Voya Financial Inc	397,110		12,132		Timken Co/The	3,686		122
White Mountains Insurance Group Ltd	221		183		Valmont Industries Inc	322		41
Willis Towers Watson PLC	103,618		13,046				$	163
WR Berkley Corp	5,927		338
					Mining - 0.18%
XL Group Ltd	6,430		223		Alcoa Corp	15,209		437
		$	85,663		Freeport-McMoRan Inc ^(a)	35,953		402
Internet - 0.07%					Newmont Mining Corp	26,223		971
FireEye Inc ^(a)	5,069		59
					Royal Gold Inc	2,751		189
IAC/InterActiveCorp	662		43		Tahoe Resources Inc	13,930		168
Liberty Ventures ^(a)	3,767		150
Pandora Media Inc ^(a)	1,345		15				$	2,167
					Miscellaneous Manufacturers - 1.95%
Symantec Corp	18,267		457
Twitter Inc ^(a)	2,527		46		AptarGroup Inc	2,184		156
Yelp Inc ^(a)	678		22		Carlisle Cos Inc	2,607		273
					Colfax Corp ^(a)	4,638		147
Zillow Group Inc - A Shares ^(a)	687		23
Zillow Group Inc - C Shares ^(a)	1,377		46		Crane Co	2,534		172
					Donaldson Co Inc	964		35
		$	861		Dover Corp	7,635		511
Iron & Steel - 0.54%					Eaton Corp PLC	185,506		11,830
Nucor Corp	16,041		784		Ingersoll-Rand PLC	6,645		447
Reliance Steel & Aluminum Co	3,315		228		ITT Inc	4,292		151
Steel Dynamics Inc	196,258		5,389		Parker-Hannifin Corp	74,285		9,119
					Pentair PLC	5,766		318
See accompanying notes					368


Schedule of Investments
MidCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Miscellaneous Manufacturers (continued)					Pipelines - 0.88%
Textron Inc	6,450	$	259		Cheniere Energy Inc ^(a)	6,921	$	261
Trinity Industries Inc	7,382		158		ONEOK Inc	203,200		9,841
		$	23,576		Williams Cos Inc/The	19,936		582
Office & Business Equipment - 0.03%							$	10,684
Xerox Corp	34,848		341		Real Estate - 0.02%
					Jones Lang LaSalle Inc	2,034		197
Oil & Gas - 6.06%
Antero Resources Corp ^(a)	8,511		225		REITS - 9.43%
Cabot Oil & Gas Corp	4,750		99		AGNC Investment Corp	11,520		231
Chesapeake Energy Corp ^(a)	25,617		141		Alexandria Real Estate Equities Inc	3,128		337
Cimarex Energy Co	2,732		353		American Campus Communities Inc	7,407		386
Concho Resources Inc ^(a)	37,205		4,723		American Homes 4 Rent	8,173		173
Continental Resources Inc/OK ^(a)	2,445		120		Annaly Capital Management Inc	35,301		366
Devon Energy Corp	340,026		12,883		Apartment Investment & Management Co	5,408		238
Diamond Offshore Drilling Inc	2,900		48		Apple Hospitality REIT Inc	8,256		149
Diamondback Energy Inc ^(a)	2,043		187		AvalonBay Communities Inc	6,621		1,133
Energen Corp	3,369		169		Boston Properties Inc	4,410		531
Ensco PLC	14,047		110		Brandywine Realty Trust	8,281		128
EQT Corp	9,146		604		Brixmor Property Group Inc	9,362		238
Helmerich & Payne Inc	6,044		381		Camden Property Trust	5,076		413
Hess Corp	13,098		628		Care Capital Properties Inc	4,009		107
HollyFrontier Corp	7,294		182		Chimera Investment Corp	9,252		145
Kosmos Energy Ltd ^(a)	7,735		40		Columbia Property Trust Inc	6,119		129
Laredo Petroleum Inc ^(a)	7,184		86		Communications Sales & Leasing Inc	5,573		158
Marathon Oil Corp	29,358		387		Corporate Office Properties Trust	372,802		9,950
Marathon Petroleum Corp	25,931		1,130		Corrections Corp of America	5,686		82
Murphy Oil Corp	224,440		5,806		CubeSmart	2,936		77
Murphy USA Inc ^(a)	776		53		CyrusOne Inc	523		23
Nabors Industries Ltd	90,344		1,075		DCT Industrial Trust Inc	4,499		210
Newfield Exploration Co ^(a)	96,238		3,907		DDR Corp	21,023		321
Noble Corp plc	11,354		56		Digital Realty Trust Inc	62,427		5,833
Noble Energy Inc	14,723		508		Douglas Emmett Inc	6,707		245
Parsley Energy Inc ^(a)	5,135		169		Duke Realty Corp	428,160		11,197
Patterson-UTI Energy Inc	7,036		158		Empire State Realty Trust Inc	3,088		60
PBF Energy Inc	409,557		8,928		EPR Properties	3,097		225
QEP Resources Inc	146,328		2,352		Equity Commonwealth ^(a)	6,131		185
Range Resources Corp	11,933		403		Equity LifeStyle Properties Inc	112,000		8,494
Rice Energy Inc ^(a)	73,830		1,631		Equity One Inc	4,601		131
Rowan Cos Plc	5,972		79		Essex Property Trust Inc	1,319		282
SM Energy Co	3,997		134		Forest City Realty Trust Inc	11,094		240
Tesoro Corp	172,655		14,671		General Growth Properties Inc	19,985		499
Transocean Ltd ^(a)	16,042		154		GEO Group Inc/The	373,100		8,939
Vermilion Energy Inc	269,000		10,566		HCP Inc	16,230		556
WPX Energy Inc ^(a)	15,804		172		Healthcare Trust of America Inc	1,786		55
		$	73,318		Highwoods Properties Inc	4,561		226
Oil & Gas Services - 0.26%					Hospitality Properties Trust	7,785		213
Baker Hughes Inc	21,268		1,178		Host Hotels & Resorts Inc	532,482		8,243
Dril-Quip Inc ^(a)	1,911		91		Kilroy Realty Corp	3,142		226
FMC Technologies Inc ^(a)	13,955		450		Kimco Realty Corp	172,068		4,579
Frank's International NV	1,827		21		Liberty Property Trust	184,431		7,456
National Oilwell Varco Inc	19,563		628		Life Storage Inc	844		68
Oceaneering International Inc	4,634		110		Macerich Co/The	4,966		352
RPC Inc	3,396		59		MFA Financial Inc	18,535		136
Superior Energy Services Inc	7,236		102		Mid-America Apartment Communities Inc	4,091		379
Targa Resources Corp	9,473		416		National Retail Properties Inc	8,201		374
Weatherford International PLC ^(a)	30,943		149		Omega Healthcare Investors Inc	7,882		251
		$	3,204		Outfront Media Inc	5,244		113
Packaging & Containers - 0.09%					Paramount Group Inc	8,842		138
Bemis Co Inc	3,892		190		Piedmont Office Realty Trust Inc	77,567		1,589
Graphic Packaging Holding Co	5,280		66		Post Properties Inc	2,664		175
Sonoco Products Co	4,726		238		Prologis Inc	136,501		7,120
					Rayonier Inc ^(b)	6,312		169
WestRock Co	12,955		598
		$	1,092		Realty Income Corp	143,344		8,491
Pharmaceuticals - 1.63%					Regency Centers Corp	204,447		14,734
Cardinal Health Inc	211,387		14,520		Retail Properties of America Inc	12,010		187
Endo International PLC ^(a)	9,131		171		Senior Housing Properties Trust	13,038		277
Mallinckrodt PLC ^(a)	5,415		321		SL Green Realty Corp	3,383		332
Mead Johnson Nutrition Co	4,149		310		Spirit Realty Capital Inc	29,152		347
OPKO Health Inc ^(a)	1,244		12		Starwood Property Trust Inc	10,880		242
Perrigo Co PLC	4,776		397		STORE Capital Corp	7,500		205
Premier Inc ^(a)	1,458		47		Sun Communities Inc	3,056		235
VCA Inc ^(a)	63,900		3,927		Tanger Factory Outlet Centers Inc	1,032		36
		$	19,705		Two Harbors Investment Corp	16,518		138
					UDR Inc	9,194		322
See accompanying notes					369


Schedule of Investments
MidCap Value Fund III
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)			Shares Held	Value (000's)
REITS (continued)					Software (continued)
Ventas Inc	12,043	$	816		PTC Inc ^(a)			2,179	$	103
VEREIT Inc	33,516		315		SS&C Technologies Holdings Inc			464		15
Vornado Realty Trust	5,957		553		Synopsys Inc ^(a)			235,017		13,939
Weingarten Realty Investors	5,769		209		Twilio Inc ^(a)			107		4
Welltower Inc	17,311		1,186		Zynga Inc ^(a)			31,665		89
Weyerhaeuser Co	25,743		771						$	23,395
WP Carey Inc	6,268		381		Telecommunications - 0.27%
		$	114,050		ARRIS International PLC ^(a)			5,081		141
Retail - 3.95%					CenturyLink Inc			26,990		717
AutoNation Inc ^(a)	1,845		81		EchoStar Corp ^(a)			2,274		106
Bed Bath & Beyond Inc	7,504		303		Frontier Communications Corp			51,853		209
Best Buy Co Inc	14,290		556		Juniper Networks Inc			19,012		501
Burlington Stores Inc ^(a)	108,207		8,109		Level 3 Communications Inc ^(a)			10,123		568
Cabela's Inc ^(a)	2,038		126		Motorola Solutions Inc			7,779		565
Coach Inc	7,845		282		Sprint Corp ^(a)			47,110		290
CST Brands Inc	3,465		166		Telephone & Data Systems Inc			4,254		110
Dick's Sporting Goods Inc	1,012		56		United States Cellular Corp ^(a)			596		21
Dillard's Inc	957		59						$	3,228
Foot Locker Inc	1,672		112		Textiles - 0.01%
GameStop Corp	4,752		114		Mohawk Industries Inc ^(a)			920		170
Gap Inc/The	11,770		325
Genuine Parts Co	1,156		105		Transportation - 1.47%
JC Penney Co Inc ^(a)	14,398		124		Expeditors International of Washington Inc			1,857		95
Kohl's Corp	147,793		6,465		Genesee & Wyoming Inc ^(a)			2,670		181
L Brands Inc	170,808		12,330		Golar LNG Ltd			452,706		9,910
Liberty Interactive Corp QVC Group ^(a)	6,748		125		Kansas City Southern			3,735		328
Macy's Inc	315,465		11,511		Kirby Corp ^(a)			2,394		141
Michaels Cos Inc/The ^(a)	1,323		31		Old Dominion Freight Line Inc ^(a)			1,267		95
MSC Industrial Direct Co Inc	1,506		110		Ryder System Inc			101,370		7,034
Nu Skin Enterprises Inc	1,755		108						$	17,784
Penske Automotive Group Inc	1,875		84		Water- 0.07		%
PVH Corp	53,719		5,747		American Water Works Co Inc			9,016		667
Signet Jewelers Ltd	235		19		Aqua America Inc			6,183		190
Staples Inc	22,412		166						$	857
Tiffany & Co	3,799		279		TOTAL COMMON STOCKS				$	1,161,186
Urban Outfitters Inc ^(a)	1,177		39
					INVESTMENT COMPANIES - 3.79%			Shares Held	Value (000's)
Wendy's Co/The	4,570		50
					Money Market Funds - 3.79%
World Fuel Services Corp	3,434		138		BlackRock Liquidity Funds FedFund Portfolio			2,241,710		2,242
		$	47,720		Cash Account Trust - Government & Agency			661,909		662
Savings & Loans - 1.29%					Portfolio - Government Cash Managed
New York Community Bancorp Inc	1,067,737		15,333		First American Government Obligations Fund			34,615,083		34,615
People's United Financial Inc	14,613		237		Goldman Sachs Financial Square Funds -			8,279,282		8,279
TFS Financial Corp	2,866		51		Government Fund
		$	15,621						$	45,798
Semiconductors - 1.42%					TOTAL INVESTMENT COMPANIES				$	45,798
Analog Devices Inc	10,651		683		Total Investments				$	1,206,984
IPG Photonics Corp ^(a)	347		34
					Other Assets and Liabilities - 0.20%				$	2,459
Lam Research Corp	2,191		212
					TOTAL NET ASSETS - 100.00%				$	1,209,443
Linear Technology Corp	4,377		263
Marvell Technology Group Ltd	13,954		182
Microchip Technology Inc	227,933		13,801		(a)	Non-Income Producing Security
Micron Technology Inc ^(a)	50,204		861		(b)	Security is Illiquid. At the end of the period, the value of these securities
ON Semiconductor Corp ^(a)	18,302		213			totaled $169 or 0.01% of net assets.
Qorvo Inc ^(a)	4,004		223		(c)	Fair value of these investments is determined in good faith by the Manager
Skyworks Solutions Inc	530		41			under procedures established and periodically reviewed by the Board of
Teradyne Inc	9,718		226			Directors. At the end of the period, the fair value of these securities totaled
Xilinx Inc	9,016		459			$0 or 0.00% of net assets.
		$	17,198
Shipbuilding - 0.01%						Portfolio Summary (unaudited)
Huntington Ingalls Industries Inc	791		128		Sector					Percent
					Financial					28.89	%
Software - 1.93%					Industrial					15.21	%
Akamai Technologies Inc ^(a)	657		46
Allscripts Healthcare Solutions Inc ^(a)	8,462		102		Consumer, Cyclical					12.44	%
ANSYS Inc ^(a)	3,469		317		Consumer, Non-cyclical					11.93	%
Autodesk Inc ^(a)	1,332		96		Utilities					7.73	%
					Energy					7.22	%
CA Inc	259,009		7,962		Basic Materials					5.86	%
CommerceHub Inc - Series A ^(a)	480		7
CommerceHub Inc - Series C ^(a)	959		14		Technology					5.02	%
Donnelley Financial Solutions Inc ^(a)	613		13		Investment Companies					3.79	%
					Communications					1.69	%
Dun & Bradstreet Corp/The	1,143		143		Diversified					0.02	%
Fidelity National Information Services Inc	6,930		512		Other Assets and Liabilities					0.20	%
Nuance Communications Inc ^(a)	2,369		33
					TOTAL NET ASSETS					100.00	%
See accompanying notes					370


Schedule of Investments
Money Market Fund
October 31, 2016



	INVESTMENT COMPANIES - 5.19%			Shares Held	Value(000			's)				Principal
	Money Market Funds - 5.19%								MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)
	Deutsche Government Money Market Series			9,300,000	$		9,300		Colorado - 2.12%
	Goldman Sachs Financial Square Funds -			8,730,000			8,730		City of Colorado Springs CO Utilities System
	Government Fund								Revenue (credit support from Mizuho Bank
	Morgan Stanley Institutional Liquidity Funds -			10,350,000			10,350		LTD)
	Government Portfolio								0.65%, 11/07/2016^(e)		$	7,000	$	7,000
	STIT-Government & Agency Portfolio			10,000,000			10,000		Colorado Housing & Finance
					$		38,380		Authority (credit support from Federal Home
	TOTAL INVESTMENT COMPANIES				$		38,380		Loan Bank)
									0.75%, 11/07/2016^(c),(e)			7,510		7,510
				Principal
	BONDS- 12.56	%		Amount (000's)	Value(000			's)	County of Kit Carson CO (credit support from
	Automobile Asset Backed Securities - 3.89%								Wells Fargo)
									0.66%, 11/07/2016^(e)			1,160		1,160
	AmeriCredit Automobile Receivables Trust
	2016-3												$	15,670
	0.75%, 08/08/2017		$	4,524		$	4,524		Illinois - 1.36%
	ARI Fleet Lease Trust 2016-A								Memorial Health System/IL (credit support
	0.80%, 03/15/2017^(a)			994			994		from JP Morgan Chase & Co)
									0.65%, 11/07/2016^(e)			10,100		10,100
	Chrysler Capital Auto Receivables Trust 2016-
	B
	0.85%, 11/15/2017^(a),(b),(c)			5,000			5,000		Maryland - 1.07%
	Enterprise Fleet Financing LLC								City of Baltimore MD (credit support from
	0.85%, 07/20/2017^(a),(c)			3,965			3,965		State Street Bank & Trust)
									0.65%, 11/07/2016^(e)			7,915		7,915
	Mercedes-Benz Auto Lease Trust 2016-B
	0.75%, 11/15/2017			4,200			4,200
	Santander Drive Auto Receivables Trust 2016-								Minnesota - 0.59%
	3								City of St Paul MN (credit support from
	0.80%, 10/16/2017			4,400			4,400		Wells Fargo)
									0.65%, 11/07/2016^(e)			4,400		4,400
	Wheels SPV 2 LLC
	0.85%, 08/20/2017^(a)			5,721			5,721
					$		28,804		Oklahoma - 0.34%
	Banks- 0.97	%							Oklahoma University Hospital (credit support
	Wells Fargo Bank NA								from Bank of America)
									0.77%, 11/07/2016^(e)			2,500		2,500
	1.06%, 10/22/2017			7,200			7,200

	Diversified Financial Services - 3.21%								TOTAL MUNICIPAL BONDS				$	49,752
	Corporate Finance Managers Inc											Principal
	0.85%, 11/07/2016^(c)			8,700			8,700		COMMERCIAL PAPER - 67.88%			Amount (000's)		Value(000	's)
	MetLife Inc								Agriculture - 2.96%
	1.05%, 08/17/2017^(c),(d)			15,000			15,000		Archer-Daniels-Midland Co
									0.40%, 11/08/2016^(a)		$	2,715	$	2,715
					$		23,700
									0.42%, 11/14/2016^(a)			3,700		3,699
	Healthcare - Services - 1.22%
									0.43%, 11/18/2016^(a)			4,500		4,499
	Portland Clinic LLP/The
	0.77%, 11/07/2016^(c)			9,030			9,030		Philip Morris International Inc
									0.50%, 11/22/2016^(a)			5,000		4,999
									0.56%, 11/25/2016^(a)			6,000		5,998
	Insurance - 2.16%
	New York Life Global Funding Company												$	21,910
	0.71%, 07/21/2017^(c),(d)			16,000			16,000		Automobile Manufacturers - 2.43%
									American Honda Finance Corp (credit support
	Other Asset Backed Securities - 1.11%								from Honda Motor Company)
	Dell Equipment Finance Trust 2016-1								0.50%, 12/06/2016^(e)			6,000		5,997
	0.85%, 07/24/2017^(a),(c)			4,824			4,824		PACCAR Financial Corp (credit support from
	GreatAmerica Leasing Receivables Funding								Paccar Inc)
	LLC Series 2016-1								0.44%, 11/02/2016^(e)			6,000		6,000
	0.78%, 02/21/2017^(a)			329			329		Toyota Credit Canada Inc (credit support
	MMAF Equipment Finance LLC 2016-A								from Toyota Financial Services)
	0.75%, 05/15/2017^(a),(c)			2,210			2,210		0.67%, 12/16/2016^(e)			6,000		5,995
	Volvo Financial Equipment LLC Series 2016-												$	17,992
	1								Banks- 27.92	%
	0.75%, 02/15/2017^(a)			802			802		Bank of Nova Scotia/The
					$		8,165		0.93%, 11/10/2016^(a),(f)			8,000		7,998
	TOTAL BONDS				$		92,899		BNP Paribas SA/New York NY
				Principal					0.30%, 11/01/2016			12,000		12,000
	MUNICIPAL BONDS - 6.72%			Amount (000's)	Value(000			's)	CAFCO LLC
									0.88%, 12/20/2016^(a)			5,000		4,994
	California - 1.24%
									0.90%, 12/05/2016^(a)			6,000		5,995
	Kern Water Bank Authority (credit support
	from Wells Fargo)								Credit Suisse AG/New York NY
	0.65%, 11/07/2016^(e)		$	4,167	$		4,167		1.06%, 02/10/2017			6,000		5,982
	San Francisco City & County Redevelopment								1.06%, 02/21/2017			6,000		5,980
	Agency (credit support from Fannie Mae)								DBS Bank Ltd
	0.53%, 11/07/2016^(e)			5,000			5,000		0.67%, 12/07/2016^(a),(f)			5,000		4,997
									0.90%, 01/03/2017^(a),(f)			6,000		5,990
					$		9,167		0.91%, 12/01/2016^(a),(f)			7,000		6,995


Schedule of Investments
Money Market Fund
October 31, 2016



		Principal							Principal
COMMERCIAL PAPER (continued)		Amount (000's)		Value(000	's)	COMMERCIAL PAPER (continued)			Amount (000's)		Value(000	's)
Banks (continued)						Diversified Financial Services (continued)
ING US Funding LLC (credit support from						Gotham Funding Corp (continued)
ING Bank)						0.98%, 01/03/2017^(a)		$	6,000	$	5,990
0.74%, 11/01/2016^(e)	$	6,000	$	6,000		Intercontinental Exchange Inc
KFW (credit support from Republic of						0.44%, 11/03/2016^(a)			6,000		6,000
Germany)						0.44%, 11/04/2016^(a)			5,000		5,000
0.50%, 11/09/2016^(a),(e),(f)		5,000		4,999		0.44%, 11/07/2016^(a)			6,000		6,000
Manhattan Asset Funding Co LLC						JP Morgan Securities LLC
0.60%, 12/08/2016^(a)		3,900		3,898		0.70%, 12/30/2016			3,900		3,895
0.63%, 11/01/2016^(a)		5,000		5,000		Liberty Street Funding LLC
0.73%, 01/12/2017^(a)		5,000		4,993		0.70%, 12/15/2016^(a)			5,000		4,996
0.77%, 12/01/2016^(a)		820		819		0.72%, 11/16/2016^(a)			5,000		4,998
0.98%, 01/03/2017^(a)		2,500		2,496		0.90%, 12/12/2016^(a)			5,000		4,995
Mitsubishi UFJ Trust & Banking Corp/NY						National Rural Utilities Cooperative Finance
0.88%, 01/25/2017		6,000		5,987		Corp
0.93%, 01/23/2017		5,000		4,989		0.45%, 11/01/2016			6,000		6,000
0.93%, 01/26/2017		6,000		5,987		0.45%, 11/03/2016			6,000		6,000
Mizuho Bank Ltd/NY						Nieuw Amsterdam Receivables Corp
0.91%, 12/21/2016^(a)		4,500		4,494		0.47%, 11/02/2016^(a)			5,000		5,000
0.91%, 12/22/2016^(a)		7,000		6,991		0.75%, 12/06/2016^(a)			3,400		3,397
1.17%, 02/27/2017^(a)		6,000		5,977		0.87%, 11/21/2016^(a)			6,000		5,997
Natixis SA/New York NY						Regency Markets No. 1 LLC
0.65%, 11/08/2016		2,000		2,000		0.62%, 11/10/2016^(a)			6,139		6,138
Oversea-Chinese Banking Corp Ltd						0.64%, 11/15/2016^(a)			5,000		4,999
0.73%, 11/09/2016^(a),(f)		7,900		7,899		0.64%, 11/25/2016^(a)			6,000		5,997
0.74%, 11/07/2016^(a),(f)		8,000		7,999						$	148,762
Sheffield Receivables Co LLC						Electric - 1.23%
0.59%, 11/01/2016^(a)		4,000		4,000		Oglethorpe Power Corp
0.75%, 11/18/2016^(a)		5,000		4,998		0.50%, 11/04/2016^(a)			3,128		3,128
Societe Generale SA						0.62%, 11/15/2016^(a)			6,000		5,998
0.63%, 12/19/2016^(f)		4,000		3,997						$	9,126
Standard Chartered Bank/New York						Food- 0.81	%
0.68%, 11/15/2016^(a)		6,000		5,998		Unilever Capital Corp (credit support from
0.85%, 01/24/2017^(a)		6,000		5,988
						Unilever)
0.88%, 01/03/2017^(a)		6,000		5,991		0.55%, 01/03/2017^(a),(e)			6,000		5,994
Sumitomo Mitsui Banking Corp
0.60%, 11/04/2016^(a),(f)		7,000		7,000
						Healthcare - Products - 1.88%
0.88%, 12/19/2016^(a),(f)		5,500		5,493		Danaher Corp
0.90%, 12/14/2016^(a),(f)		6,000		5,994		0.51%, 11/09/2016^(a)			3,000		3,000
United Overseas Bank Ltd						0.54%, 11/17/2016^(a)			3,040		3,039
0.60%, 12/02/2016^(a),(f)		2,630		2,629		0.60%, 12/15/2016^(a)			5,500		5,496
0.60%, 12/08/2016^(a),(f)		4,000		3,997		0.60%, 12/27/2016^(a)			2,400		2,398
0.75%, 12/07/2016^(a),(f)		4,000		3,997
										$	13,933
0.91%, 01/20/2017^(a),(f)		5,000		4,990
						Insurance - 2.74%
			$	206,531		Nationwide Life Insurance Co
Commercial Services - 0.55%						0.54%, 11/08/2016^(a)			4,000		3,999
Salvation Army/United States						0.54%, 11/14/2016^(a)			6,500		6,499
0.73%, 01/09/2017		4,100		4,094		Prudential PLC
						0.65%, 11/02/2016^(a)			3,800		3,800
Computers - 1.67%						0.67%, 11/22/2016^(a)			6,000		5,998
International Business Machines Corp										$	20,296
0.60%, 12/28/2016^(a)		4,370		4,366
						Machinery - Construction & Mining - 0.37%
0.62%, 12/27/2016^(a)		4,470		4,466
						Caterpillar Financial Services Corp (credit
0.62%, 12/29/2016^(a)		3,500		3,496
						support from Caterpillar Inc)
			$	12,328		0.47%, 11/02/2016^(e)			2,700		2,700
Diversified Financial Services - 20.11%
Anglesea Funding LLC						Media- 0.54	%
0.55%, 11/08/2016^(a)		5,000		4,999		Walt Disney Co/The
Collateralized Commercial Paper Co LLC						0.55%, 12/30/2016^(a)			4,000		3,996
1.00%, 01/10/2017		5,000		4,990
1.00%, 01/17/2017		6,000		5,987		Miscellaneous Manufacturers - 0.36%
Collateralized Commercial Paper II Co LLC						Parker-Hannifin Corp
0.82%, 11/10/2016^(a)		5,000		4,999		0.53%, 11/14/2016^(a)			2,700		2,700
CRC Funding
0.78%, 11/04/2016^(a)		6,000		6,000
						REITS- 1.49	%
DCAT LLC						Simon Property Group LP
0.72%, 11/03/2016		6,000		6,000		0.65%, 12/13/2016^(a)			6,000		5,995
0.72%, 11/07/2016		6,000		5,999		0.66%, 01/09/2017^(a)			5,000		4,994
0.80%, 12/07/2016		6,400		6,395						$	10,989
Fairway Finance Co LLC						Supranational Bank - 0.95%
0.82%, 11/28/2016^(a)		7,000		6,996
						Corp Andina de Fomento
Gotham Funding Corp						0.50%, 11/30/2016^(a)			7,000		6,997
0.63%, 11/21/2016^(a)		6,000		5,998
0.75%, 12/02/2016^(a)		5,000		4,997


					Schedule of Investments
					Money Market Fund
					October 31, 2016


			Principal
COMMERCIAL PAPER (continued)		Amount (000's)			Value(000	's)
Telecommunications - 1.87%
Telstra Corp Ltd
0.50%, 11/02/2016^(a)		$	3,830	$	3,830
0.67%, 12/05/2016^(a)			5,000		4,997
0.89%, 01/23/2017^(a)			5,000		4,990
				$	13,817
TOTAL COMMERCIAL PAPER				$	502,165
			Principal
CERTIFICATE OF DEPOSIT - 0.78%		Amount (000's)			Value(000	's)
Banks- 0.78	%
Bank of Nova Scotia/Houston
0.98%, 05/11/2017^(c),(f)			5,800		5,800

TOTAL CERTIFICATE OF DEPOSIT				$	5,800
			Maturity
REPURCHASE AGREEMENTS - 7.84%		Amount (000's)			Value(000	's)
Banks- 7.84	%
Barclays Repurchase Agreement; 0.32% dated $			18,000	$	18,000
10/31/2016 maturing 11/01/2016
(collateralized by US Government
Securities; $18,360,061; 0.00%-1.38%;
dated 02/15/19-05/31/21)
Credit Suisse Repurchase Agreement; 0.31%			15,000		15,000
dated 10/31/2016 maturing 11/01/2016
(collateralized by US Government
Security; $15,303,605; 2.63%; dated
11/15/2020	)
Merrill Lynch Repurchase Agreement; 0.32%			25,000		25,000
dated 10/31/2016 maturing 11/01/2016
(collateralized by US Government
Security; $25,500,817; 0.00%; dated
1/30/2017	)
				$	58,000
TOTAL REPURCHASE AGREEMENTS				$	58,000
Total Investments				$	746,996
Other Assets and Liabilities - (0.97)%				$	(7,164	)
TOTAL NET ASSETS - 100.00%				$	739,832


Schedule of Investments
Overseas Fund
October 31, 2016



COMMON STOCKS - 94.34%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 2.74%					Banks (continued)
Airbus Group SE	444,130	$	26,372		DBS Group Holdings Ltd	109,800	$	1,184
BAE Systems PLC	223,649		1,482		Deutsche Bank AG ^(a)	86,129		1,246
Cobham PLC	566,600		989		DNB ASA	75,818		1,096
Embraer SA ADR	769,900		16,468		Erste Group Bank AG	873,972		27,407
IHI Corp	8,491,600		22,339		Fukuoka Financial Group Inc	74,000		320
Meggitt PLC	75,327		401		Hachijuni Bank Ltd/The	39,500		215
Rolls-Royce Holdings PLC ^(a)	1,857,734		16,490		Hang Seng Bank Ltd	56,100		1,012
		$	84,541		Hiroshima Bank Ltd/The	48,000		205
Agriculture - 3.29%					HSBC Holdings PLC	1,235,901		9,308
British American Tobacco PLC	739,174		42,364		ING Groep NV	3,678,073		48,283
Imperial Brands PLC	833,852		40,335		Intesa Sanpaolo SpA	277,342		643
KT&G Corp	101,639		10,025		Investec PLC	38,698		240
Philip Morris International Inc	91,600		8,834		KBC Group NV	19,463		1,187
		$	101,558		Komercni banka as	48,134		1,761
Airlines - 1.03%					Kyushu Financial Group Inc	33,700		224
Japan Airlines Co Ltd	1,071,600		31,625		Lloyds Banking Group PLC	40,201,127		28,073
					Mediobanca SpA	55,129		404
Apparel - 0.01%					Mitsubishi UFJ Financial Group Inc	941,200		4,856
Yue Yuen Industrial Holdings Ltd	72,000		274		Mizrahi Tefahot Bank Ltd	13,466		175
					Mizuho Financial Group Inc	1,755,500		2,956
Automobile Manufacturers - 1.94%					National Australia Bank Ltd	165,007		3,503
Bayerische Motoren Werke AG	23,057		2,012		Natixis SA	91,240		462
Daimler AG	175,641		12,531		Nordea Bank AB	189,673		1,993
Fiat Chrysler Automobiles NV	3,344,780		24,520		Oversea-Chinese Banking Corp Ltd	192,900		1,175
Fuji Heavy Industries Ltd	15,000		586		Resona Holdings Inc	137,800		611
Hino Motors Ltd	16,000		174		Shinsei Bank Ltd	172,000		278
Honda Motor Co Ltd	113,300		3,390		Shizuoka Bank Ltd/The	51,000		430
Isuzu Motors Ltd	57,500		711		Skandinaviska Enskilda Banken AB	94,855		957
Mazda Motor Corp	35,600		590		Societe Generale SA	59,524		2,322
					Standard Chartered PLC ^(a)	204,702		1,780
Nissan Motor Co Ltd	171,800		1,748
Peugeot SA ^(a)	23,626		354		Sumitomo Mitsui Financial Group Inc	1,042,900		36,159
Renault SA	9,314		810		Sumitomo Mitsui Trust Holdings Inc	24,507		827
Toyota Motor Corp	185,510		10,761		Svenska Handelsbanken AB	94,503		1,288
Volkswagen AG	3,155		472		Swedbank AB	70,260		1,644
Volvo AB - B Shares	108,889		1,168		UBS Group AG	1,109,961		15,693
		$	59,827		UniCredit SpA	330,759		821
					United Overseas Bank Ltd	1,716,400		23,155
Automobile Parts & Equipment - 0.59%
					Westpac Banking Corp	208,086		4,812
Aisin Seiki Co Ltd	13,300		584
					Yamaguchi Financial Group Inc	19,000		209
Bridgestone Corp	45,200		1,687
Cie Generale des Etablissements Michelin	12,675		1,373				$	410,905
Hankook Tire Co Ltd	256,579		12,321		Beverages - 1.62%
JTEKT Corp	21,500		318		Asahi Group Holdings Ltd	280,600		10,009
NHK Spring Co Ltd	20,100		190		Coca-Cola Amatil Ltd	35,872		260
Nokian Renkaat OYJ	11,137		374		Coca-Cola European Partners PLC	413,600		15,899
Sumitomo Electric Industries Ltd	52,300		773		Diageo PLC	890,402		23,700
Sumitomo Rubber Industries Ltd	16,500		277		Suntory Beverage & Food Ltd	4,600		201
Toyoda Gosei Co Ltd	6,200		142				$	50,069
Yokohama Rubber Co Ltd/The	10,700		186		Building Materials - 2.49%
		$	18,225		Asahi Glass Co Ltd	98,000		685
Banks - 13.33%					Cie de Saint-Gobain	587,902		26,105
ABN AMRO Group NV ^(b)	22,826		527		CRH PLC	1,102,326		35,671
Australia & New Zealand Banking Group Ltd	261,199		5,515		Fletcher Building Ltd	67,015		496
Banco Bilbao Vizcaya Argentaria SA	409,709		2,949		Sumitomo Osaka Cement Co Ltd	3,319,100		13,747
Banco de Sabadell SA	11,743,088		15,680				$	76,704
Banco Santander SA	2,726,174		13,358		Chemicals - 4.13%
Banco Santander SA - Rights ^(a)	3,842,867		215		Air Liquide SA	108,812		11,057
Bangkok Bank PCL	794,700		3,608		Akzo Nobel NV	746,406		48,226
Bank Hapoalim BM	103,217		595		Arkema SA	6,582		624
Bank Leumi Le-Israel BM ^(a)	140,355		530		Asahi Kasei Corp	87,000		784
Bank of East Asia Ltd/The	117,200		471		BASF SE	351,333		31,015
Bank of Ireland ^(a)	930,443		199		Clariant AG ^(a)	450,438		7,459
Bank of Kyoto Ltd/The	29,000		213		Evonik Industries AG	15,823		495
Bankia SA	448,644		394		Hitachi Chemical Co Ltd	3,500		82
Barclays PLC	14,766,864		34,213		Israel Chemicals Ltd	49,264		175
Bendigo & Adelaide Bank Ltd	44,942		380		Koninklijke DSM NV	11,328		728
BNP Paribas SA	497,064		28,822		Kuraray Co Ltd	12,000		182
BOC Hong Kong Holdings Ltd	272,800		972		Linde AG	138,744		22,916
CaixaBank SA	7,392,816		22,307		Mitsubishi Chemical Holdings Corp	65,900		433
Chiba Bank Ltd/The	67,000		414		Mitsubishi Gas Chemical Co Inc	17,400		268
Concordia Financial Group Ltd	114,300		530		Mitsui Chemicals Inc	57,000		281
Credit Agricole SA	81,907		884		Shin-Etsu Chemical Co Ltd	9,400		713
Credit Suisse Group AG ^(a)	1,858,763		25,935		Solvay SA	4,628		531
Danske Bank A/S	754,649		23,280		Sumitomo Chemical Co Ltd	52,000		246


Schedule of Investments
Overseas Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Chemicals (continued)					Electrical Components & Equipment (continued)
Teijin Ltd	18,000	$	348		Legrand SA	244,152	$	13,794
Yara International ASA	17,337		612		Mabuchi Motor Co Ltd	57,800		3,360
		$	127,175		Schneider Electric SE	692,645		46,581
Commercial Services - 0.60%							$	64,153
Adecco Group AG	10,354		615		Electronics - 0.90%
Aggreko PLC	8,693		85		Hitachi High-Technologies Corp	4,300		179
Atlantia SpA	25,791		631		Koninklijke Philips NV	869,484		26,200
Dai Nippon Printing Co Ltd	51,000		512		Kyocera Corp	22,600		1,098
Edenred	9,996		231		Nippon Electric Glass Co Ltd	40,000		218
G4S PLC	150,780		405				$	27,695
Hutchison Port Holdings Trust	503,862		224		Engineering & Construction - 0.52%
RELX NV	913,919		15,411		ACS Actividades de Construccion y Servicios	18,788		575
Toppan Printing Co Ltd	50,000		470		SA
		$	18,584		Balfour Beatty PLC	3,424,878		11,355
Computers - 0.03%					Bouygues SA	20,072		654
Fujitsu Ltd	131,000		777		Skanska AB	32,957		716
					Vinci SA	35,572		2,576
Distribution & Wholesale - 1.38%							$	15,876
ITOCHU Corp	108,800		1,374		Entertainment - 0.03%
Jardine Cycle & Carriage Ltd	429,700		13,012		Sega Sammy Holdings Inc	18,000		266
Li & Fung Ltd	576,000		283		Tabcorp Holdings Ltd	40,340		148
Marubeni Corp	120,100		631		Tatts Group Ltd	142,451		439
Mitsubishi Corp	109,800		2,390				$	853
Mitsui & Co Ltd	124,000		1,718		Food - 1.63%
Rexel SA	29,329		407		Ajinomoto Co Inc	18,800		418
Sumitomo Corp	1,974,800		22,703		Aryzta AG ^(a)	340,595		14,966
Toyota Tsusho Corp	7,100		168		Carrefour SA	38,386		1,006
		$	42,686		Casino Guichard Perrachon SA	152,877		7,610
Diversified Financial Services - 1.48%					Charoen Pokphand Foods PCL ^(c)	8,009,400		7,203
Aberdeen Asset Management PLC	89,757		351		Dairy Crest Group PLC	1,901,163		14,189
ASX Ltd	6,532		234		First Pacific Co Ltd/Hong Kong	206,000		156
Daiwa Securities Group Inc	104,000		621		ICA Gruppen AB	7,748		241
Deutsche Boerse AG ^(a)	239,745		18,721		J Sainsbury PLC	159,181		488
Hong Kong Exchanges & Clearing Ltd	29,600		782		NH Foods Ltd	5,000		120
Julius Baer Group Ltd ^(a)	13,971		566		Nisshin Seifun Group Inc	6,760		100
Macquarie Group Ltd	12,417		751		Nissin Foods Holdings Co Ltd	2,800		162
Mebuki Financial Group Inc	159,760		569		Orkla ASA	56,525		534
Mitsubishi UFJ Lease & Finance Co Ltd	43,300		210		Tate & Lyle PLC	45,331		432
Nomura Holdings Inc	226,500		1,134		Toyo Suisan Kaisha Ltd	2,900		117
ORIX Corp	82,500		1,307		Wilmar International Ltd	186,600		443
Shinhan Financial Group Co Ltd	536,101		20,508		Wm Morrison Supermarkets PLC	215,048		595
		$	45,754		Woolworths Ltd	79,768		1,432
Electric - 2.29%							$	50,212
AGL Energy Ltd	46,763		681		Forest Products & Paper - 1.04%
AusNet Services	170,655		194		DS Smith PLC	6,227,221		30,365
Chubu Electric Power Co Inc	47,000		692		Oji Holdings Corp	27,000		114
Chugoku Electric Power Co Inc/The	27,100		317		Stora Enso OYJ	53,499		506
DUET Group	81,988		148		UPM-Kymmene OYJ	39,740		924
E.ON SE	140,073		1,027				$	31,909
EDP - Energias de Portugal SA	224,454		742		Gas - 0.71%
Electric Power Development Co Ltd	14,200		331		Centrica PLC	379,802		995
Electricite de France SA	24,039		270		Enagas SA	21,977		630
Endesa SA	30,786		653		Gas Natural SDG SA	33,940		668
Enel SpA	533,771		2,295		National Grid PLC	1,337,396		17,397
Engie SA	2,282,326		32,915		Osaka Gas Co Ltd	181,000		753
HK Electric Investments & HK Electric	255,500		253		Snam SpA	152,859		805
Investments Ltd ^(b)					Tokyo Gas Co Ltd	127,000		576
Hokuriku Electric Power Co	16,200		184				$	21,824
Iberdrola SA	379,545		2,583		Hand & Machine Tools - 1.02%
Kansai Electric Power Co Inc/The ^(a)	68,200		652
					Fuji Electric Co Ltd	6,136,000		30,641
Kyushu Electric Power Co Inc	41,500		377		Sandvik AB	67,172		763
Mercury NZ Ltd	67,796		148				$	31,404
Meridian Energy Ltd	123,493		227
					Holding Companies - Diversified - 0.53%
Origin Energy Ltd	169,897		685		China Merchants Port Holdings Co Ltd	4,111,916		10,631
Power Assets Holdings Ltd	96,000		901		CK Hutchison Holdings Ltd	187,000		2,309
Red Electrica Corp SA	30,300		631
RWE AG ^(a)	34,435		548		Jardine Matheson Holdings Ltd	17,153		1,045
					Keppel Corp Ltd	141,000		533
Shikoku Electric Power Co Inc	16,100		151		NWS Holdings Ltd	147,000		260
SSE PLC	1,171,614		22,780
Tokyo Electric Power Co Holdings Inc ^(a)	48,800		189		Swire Pacific Ltd	52,500		546
					Wendel SA	2,809		323
		$	70,574		Wharf Holdings Ltd/The	100,000		750
Electrical Components & Equipment - 2.08%							$	16,397
Brother Industries Ltd	22,800		418


Schedule of Investments
Overseas Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Home Builders - 0.09%					Machinery - Construction & Mining (continued)
Barratt Developments PLC	33,776	$	187		Komatsu Ltd	1,300,100	$	28,939
Daiwa House Industry Co Ltd	35,200		966		Mitsubishi Electric Corp	140,000		1,894
Persimmon PLC	19,430		402				$	147,282
Sekisui Chemical Co Ltd	39,600		624		Machinery - Diversified - 1.44%
Sekisui House Ltd	41,900		693		Alstom SA ^(a)	12,400		333
		$	2,872		Amada Holdings Co Ltd	16,200		184
Insurance - 6.02%					CNH Industrial NV	637,005		4,956
Admiral Group PLC	20,484		480		CNH Industrial NV	2,646,633		20,548
Aegon NV	4,102,703		17,748		FANUC Corp	12,200		2,234
Allianz SE	28,507		4,450		Metso OYJ	10,997		288
Assicurazioni Generali SpA	90,766		1,172		Mitsubishi Heavy Industries Ltd	151,000		646
Aviva PLC	7,253,602		39,306		OC Oerlikon Corp AG ^(a)	586,342		5,512
AXA SA	150,703		3,400		Sumitomo Heavy Industries Ltd	53,000		279
Baloise Holding AG	4,849		597		Teco Electric and Machinery Co Ltd	10,074,503		8,932
CNP Assurances	16,546		287		Weir Group PLC/The	20,791		432
Dai-ichi Life Holdings Inc	79,500		1,166				$	44,344
Direct Line Insurance Group PLC	133,267		564		Media - 0.10%
Hannover Rueck SE	5,844		652		Axel Springer SE	1,444		72
Helvetia Holding AG	15,610		8,121		Lagardere SCA	11,365		289
Insurance Australia Group Ltd	151,827		635		Pearson PLC	79,620		737
Legal & General Group PLC	300,007		768		RTL Group SA	3,727		292
Manulife Financial Corp	497,200		7,202		Singapore Press Holdings Ltd	54,200		145
Mapfre SA	103,969		308		Vivendi SA	81,021		1,640
MS&AD Insurance Group Holdings Inc	24,300		721				$	3,175
Muenchener Rueckversicherungs-Gesellschaft	12,494		2,426		Metal Fabrication & Hardware - 0.02%
AG in Muenchen					Maruichi Steel Tube Ltd	5,300		171
NN Group NV	19,965		601		NSK Ltd	42,800		476
Old Mutual PLC	382,383		941				$	647
Poste Italiane SpA ^(b)	25,268		168
					Mining - 0.51%
Prudential PLC	1,807,099		29,490		Anglo American PLC ^(a)	104,401		1,449
QBE Insurance Group Ltd	85,637		649		BHP Billiton Ltd	222,605		3,889
RSA Insurance Group PLC	98,576		666		BHP Billiton PLC	131,885		1,983
Sampo Oyj	34,683		1,589		Glencore PLC ^(a)	764,047		2,339
SCOR SE	15,844		513		Mitsubishi Materials Corp	10,900		312
Sompo Holdings Inc	17,100		553		Rio Tinto Ltd	29,401		1,217
Sony Financial Holdings Inc	16,800		236		Rio Tinto PLC	92,104		3,203
Standard Life PLC	153,252		632		South32 Ltd	368,994		720
Suncorp Group Ltd	80,374		730		Sumitomo Metal Mining Co Ltd	47,000		611
Swiss Life Holding AG ^(a)	52,719		13,951
							$	15,723
Swiss Re AG	25,883		2,402
					Miscellaneous Manufacturers - 1.06%
T&D Holdings Inc	56,100		678		Alfa Laval AB	791,860		11,360
Tokio Marine Holdings Inc	25,200		994
Zurich Insurance Group AG ^(a)	155,416		40,681		FUJIFILM Holdings Corp	30,900		1,168
					IMI PLC	26,478		322
		$	185,477		Nikon Corp	812,100		12,273
Internet - 1.37%					Siemens AG	53,875		6,121
Baidu Inc ADR^(a)	159,200		28,156
					Smiths Group PLC	38,292		664
Trend Micro Inc/Japan	398,300		14,026		Wartsila OYJ Abp	14,334		620
		$	42,182				$	32,528
Investment Companies - 0.03%					Office & Business Equipment - 0.88%
BGP Holdings PLC ^(a),(c)	738,711		—
					Canon Inc	908,900		26,111
EXOR SpA	3,761		160		Ricoh Co Ltd	65,000		530
Groupe Bruxelles Lambert SA	7,819		672		Seiko Epson Corp	27,200		551
Pargesa Holding SA	3,350		225				$	27,192
		$	1,057		Oil & Gas - 7.78%
Iron & Steel - 0.48%					BP PLC	4,930,805		29,150
ArcelorMittal ^(a)	1,817,139		12,278
					BP PLC ADR	362,100		12,873
JFE Holdings Inc(a)	50,600		725		CNOOC Ltd	25,891,000		32,578

Kobe Steel Ltd	19,200		158		Ecopetrol SA ADR^(a)	266,900		2,319
Nippon Steel & Sumitomo Metal Corp	55,900		1,108		Encana Corp	1,241,600		11,839
voestalpine AG	11,063		392		Eni SpA	1,755,250		25,472
		$	14,661		Idemitsu Kosan Co Ltd	8,600		198
Leisure Products & Services - 1.05%					Inpex Corp	92,000		858
Carnival PLC	667,855		32,213		JX Holdings Inc	154,810		612
					Neste Oyj	12,440		537
Lodging - 0.03%					Repsol SA	69,251		967
MGM China Holdings Ltd	45,600		75		Royal Dutch Shell PLC - A Shares	334,126		8,322
Sands China Ltd	167,600		728		Royal Dutch Shell PLC - B Shares	2,301,673		59,366
SJM Holdings Ltd	190,000		131		Santos Ltd	53,819		144
		$	934		Statoil ASA	69,689		1,138
Machinery - Construction & Mining - 4.78%					TOTAL SA	1,090,937		52,262
ABB Ltd ADR^(a)	359,900		7,432		Woodside Petroleum Ltd	52,676		1,127
ABB Ltd ^(a)	1,979,146		40,831				$	239,762
Hitachi Ltd	12,790,800		68,186


Schedule of Investments
Overseas Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Oil & Gas Services - 0.84%					Retail (continued)
Technip SA	390,695	$	25,930		Swatch Group AG/The	1,927	$	580
					Takashimaya Co Ltd	29,000		236
Pharmaceuticals - 9.63%					Yamada Denki Co Ltd	39,300		203
Alfresa Holdings Corp	6,200		131				$	32,082
Astellas Pharma Inc	720,600		10,695		Semiconductors - 1.59%
AstraZeneca PLC	78,882		4,417		Rohm Co Ltd	8,600		452
Bayer AG	289,737		28,768		Samsung Electronics Co Ltd	32,820		46,944
Daiichi Sankyo Co Ltd	51,200		1,230		STMicroelectronics NV	61,876		587
Eisai Co Ltd	15,700		1,001		Tokyo Electron Ltd	11,100		1,001
GlaxoSmithKline PLC	2,944,918		58,175				$	48,984
Medipal Holdings Corp	10,800		185		Shipbuilding - 0.01%
Mitsubishi Tanabe Pharma Corp	14,200		276		Sembcorp Industries Ltd	94,900		172
Novartis AG	878,893		62,373		Yangzijiang Shipbuilding Holdings Ltd	184,700		99
Orion Oyj	6,420		273				$	271
Otsuka Holdings Co Ltd	13,200		578		Software - 0.94%
Roche Holding AG	165,144		37,931		SAP SE	327,655		28,866
Sanofi	842,509		65,563
Suzuken Co Ltd/Aichi Japan	4,720		152		Storage & Warehousing - 0.00%
Taisho Pharmaceutical Holdings Co Ltd	2,200		215		Mitsubishi Logistics Corp	5,000		68
Takeda Pharmaceutical Co Ltd	22,100		988
Teva Pharmaceutical Industries Ltd ADR	527,000		22,524		Telecommunications - 5.74%
Teva Pharmaceutical Industries Ltd	28,528		1,191		China Mobile Ltd	3,879,341		44,443
		$	296,666		Elisa OYJ	4,809		162
Private Equity - 0.02%					KDDI Corp	1,601,200		48,665
3i Group PLC	94,268		773		Koninklijke KPN NV	215,181		702
					Nippon Telegraph & Telephone Corp	48,900		2,168
Real Estate - 0.21%					Nokia OYJ	364,000		1,625
Aeon Mall Co Ltd	5,400		80		NTT DOCOMO Inc	98,000		2,461
Hang Lung Properties Ltd	217,000		477		Orange SA	123,926		1,950
Hongkong Land Holdings Ltd	73,400		492		SES SA	25,368		584
Kerry Properties Ltd	63,000		200		SK Telecom Co Ltd	200,640		39,332
Mitsui Fudosan Co Ltd	30,000		683		Swisscom AG	1,615		738
New World Development Co Ltd	546,285		679		TDC A/S ^(a)	78,865		435
Nomura Real Estate Holdings Inc	12,100		204		Telecom Italia SpA/Milano ^(a)	341,197		297
Sino Land Co Ltd	297,920		506		Telecom Italia SpA/Milano	586,363		416
Sun Hung Kai Properties Ltd	106,383		1,584		Telefonaktiebolaget LM Ericsson	191,470		929
Swiss Prime Site AG ^(a)	6,802		564
					Telefonica SA	337,656		3,431
Tokyu Fudosan Holdings Corp	24,800		140		Telenor ASA	25,536		406
Vonovia SE	14,548		513		Telia Co AB	162,063		647
Wheelock & Co Ltd	79,000		486		Vodafone Group PLC	9,985,788		27,424
		$	6,608				$	176,815
REITS - 0.91%					Transportation - 1.94%
BritishLandCoPLC/The	94,767		679		AP Moller - Maersk A/S	396		607
CapitaLand Commercial Trust	199,400		226		East Japan Railway Co	508,500		44,763
Daiwa House REIT Investment Corp	131		355		Hankyu Hanshin Holdings Inc	8,200		271
Dexus Property Group	93,814		637		Kamigumi Co Ltd	22,000		188
Fonciere Des Regions	3,260		285		MTR Corp Ltd	71,000		393
Hammerson PLC	76,762		516		Nippon Yusen KK	155,000		317
Intu Properties PLC	91,689		309		PostNL NV ^(a)	2,536,583		11,947
Japan Prime Realty Investment Corp	80		346		Royal Mail PLC	87,308		524
Japan Real Estate Investment Corp	126		730		Tobu Railway Co Ltd	32,000		157
Japan Retail Fund Investment Corp	249		566		West Japan Railway Co	10,300		634
Klepierre	13,739		562				$	59,801
Land Securities Group PLC	49,320		602		Water - 0.42%
Mirvac Group	358,750		569		Guangdong Investment Ltd	7,879,900		11,881
Nippon Building Fund Inc	89		529		United Utilities Group PLC	42,613		490
Nippon Prologis REIT Inc	151		342		Veolia Environnement SA	31,548		689
Nomura Real Estate Master Fund Inc	384		623				$	13,060
Scentre Group	332,130		1,063		TOTAL COMMON STOCKS		$	2,907,618
Segro PLC	80,459		431
					INVESTMENT COMPANIES - 3.56%	Shares Held		Value(000	's)
Stockland	214,152		719
Unibail-Rodamco SE	7,685		1,824		Money Market Funds - 3.56%
					BlackRock Liquidity Funds FedFund Portfolio	77,877,273		77,877
United Urban Investment Corp	287		485
					Cash Account Trust - Government & Agency	1,051,752		1,052
Vicinity Centres	210,418		459
					Portfolio - Government Cash Managed
Westfield Corp	2,247,326		15,187
					First American Government Obligations Fund	30,850,967		30,851
		$	28,044
							$	109,780
Retail - 1.04%
					TOTAL INVESTMENT COMPANIES		$	109,780
Cie Financiere Richemont SA	452,600		29,098
FamilyMart UNY Holdings Co Ltd	5,100		320		PREFERRED STOCKS - 2.08%	Shares Held		Value(000	's)
Harvey Norman Holdings Ltd	34,513		132		Automobile Manufacturers - 2.08%
					Bayerische Motoren Werke AG 3.22%^(d)	5,302	$	402
Kingfisher PLC	158,284		699		Porsche Automobil Holding SE 1.01%^(d)	14,840		802
Lawson Inc	2,100		160		Volkswagen AG 0.17%^(d)	455,959		62,866
Marks & Spencer Group PLC	157,314		654
							$	64,070


Schedule of Investments
Principal Capital Appreciation Fund
October 31, 2016



COMMON STOCKS - 98.84%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Aerospace & Defense - 3.39%					Diversified Financial Services (continued)
Boeing Co/The	217,256	$	30,944		Synchrony Financial	725,043	$	20,729
Northrop Grumman Corp	158,138		36,213		WisdomTree Investments Inc	25,050		215
Teledyne Technologies Inc ^(a)	152,007		16,368				$	97,618
		$	83,525		Electric - 1.94%
Airlines - 0.86%					NextEra Energy Inc	164,089		21,004
Alaska Air Group Inc	293,279		21,181		Xcel Energy Inc	646,022		26,842
							$	47,846
Apparel - 1.23%					Electronics - 1.43%
Deckers Outdoor Corp ^(a)	156,771		8,182		Johnson Controls International plc	308,064		12,421
NIKE Inc	438,626		22,010		Trimble Inc ^(a)	390,780		10,801
		$	30,192		Waters Corp ^(a)	86,047		11,973
Automobile Manufacturers - 0.71%							$	35,195
PACCAR Inc	316,508		17,383		Environmental Control - 1.43%
					Waste Connections Inc	467,200		35,138
Automobile Parts & Equipment - 0.74%
Adient plc ^(a)	30,806		1,402		Food - 3.01%
Autoliv Inc	135,678		13,131		B&G Foods Inc	307,882		13,054
Mobileye NV ^(a)	95,408		3,547		General Mills Inc	362,078		22,441
		$	18,080		Kroger Co/The	674,488		20,896
Banks - 6.58%					McCormick & Co Inc/MD	183,571		17,599
East West Bancorp Inc	382,401		15,109		Safeway, Inc. - CVR - Casa Ley ^(a),(b),(c)	2,740		—
Goldman Sachs Group Inc/The	81,572		14,539		Safeway, Inc. - CVR - Property Development	2,740		—
JPMorgan Chase & Co	414,733		28,724		Centers ^(a),(b),(c)
PNC Financial Services Group Inc/The	225,998		21,605				$	73,990
SVB Financial Group ^(a)	117,572		14,376		Gas - 1.40%
US Bancorp	636,098		28,472		Sempra Energy	321,330		34,414
Wells Fargo & Co	851,876		39,195
		$	162,020		Healthcare - Products - 4.98%
Beverages - 2.92%					Abbott Laboratories	311,194		12,211
Anheuser-Busch InBev SA/NV ADR	121,573		14,041		Becton Dickinson and Co	158,952		26,690
Brown-Forman Corp - B Shares	172,436		7,961		Bio-Techne Corp	80,386		8,359
Coca-Cola Co/The	199,274		8,449		Edwards Lifesciences Corp ^(a)	179,879		17,128
Dr Pepper Snapple Group Inc	139,767		12,270		Medtronic PLC	179,135		14,693
PepsiCo Inc	271,605		29,116		Thermo Fisher Scientific Inc	214,046		31,471
		$	71,837		Varian Medical Systems Inc ^(a)	131,432		11,925
Biotechnology - 1.40%							$	122,477
Biogen Inc ^(a)	69,621		19,507		Healthcare - Services - 0.85%
Gilead Sciences Inc	203,156		14,958		DaVita Inc ^(a)	150,000		8,793
		$	34,465		Universal Health Services Inc	101,333		12,232
Building Materials - 0.29%							$	21,025
Apogee Enterprises Inc	173,728		7,079		Housewares - 0.51%
					Tupperware Brands Corp	212,751		12,663
Chemicals - 2.57%
EI du Pont de Nemours & Co	137,130		9,433		Insurance - 2.32%
FMC Corp	209,844		9,840		AmTrust Financial Services Inc	900,265		23,758
HB Fuller Co	256,509		10,791		Chubb Ltd	261,659		33,231
Innospec Inc	204,981		12,350				$	56,989
International Flavors & Fragrances Inc	67,801		8,867		Internet - 6.18%
PPG Industries Inc	129,605		12,070		Alphabet Inc - A Shares ^(a)	49,182		39,833
		$	63,351		Alphabet Inc - C Shares ^(a)	29,760		23,348
Commercial Services - 1.11%					Amazon.com Inc ^(a)	45,317		35,792
Aaron's Inc	407,977		10,081		comScore Inc ^(a)	1,000		29
PayPal Holdings Inc ^(a)	353,795		14,739		eBay Inc ^(a)	583,654		16,640
Robert Half International Inc	66,588		2,492		Facebook Inc ^(a)	278,276		36,451
		$	27,312				$	152,093
Computers - 3.61%					Iron & Steel - 0.41%
Apple Inc	748,946		85,035		Reliance Steel & Aluminum Co	146,014		10,043
International Business Machines Corp	24,233		3,725
		$	88,760		Machinery - Diversified - 1.73%
Consumer Products - 0.28%					Deere & Co	156,052		13,779
Kimberly-Clark Corp	59,953		6,859		Flowserve Corp	370,798		15,703
					Roper Technologies Inc	75,342		13,058
Cosmetics & Personal Care - 0.95%							$	42,540
Procter & Gamble Co/The	269,480		23,391		Media - 3.28%
					Comcast Corp - Class A	617,688		38,185
Distribution & Wholesale - 0.35%					Sirius XM Holdings Inc	2,782,370		11,603
Pool Corp	94,006		8,703		Walt Disney Co/The	333,476		30,910
							$	80,698
Diversified Financial Services - 3.97%					Miscellaneous Manufacturers - 1.87%
Ameriprise Financial Inc	240,112		21,223		AptarGroup Inc	203,375		14,529
Charles Schwab Corp/The	567,951		18,004		Crane Co	141,775		9,642
Discover Financial Services	222,419		12,529		Donaldson Co Inc	97,802		3,572
FNF Group	693,896		24,918


Schedule of Investments
Principal Capital Appreciation Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held	Value (000's)
Miscellaneous Manufacturers (continued)					Transportation (continued)
General Electric Co	626,528	$	18,232		Union Pacific Corp		129,109	$	11,385
		$	45,975					$	24,735
Oil & Gas - 4.78%					TOTAL COMMON STOCKS			$	2,431,952
Chevron Corp	253,180		26,521		INVESTMENT COMPANIES - 1.03%		Shares Held	Value (000's)
Cimarex Energy Co	234,862		30,328		Money Market Funds - 1.03%
Energen Corp	191,134		9,582		Goldman Sachs Financial Square Funds -		25,466,228		25,466
Exxon Mobil Corp	421,309		35,103		Government Fund
HollyFrontier Corp	259,682		6,479
Noble Energy Inc	276,886		9,544		TOTAL INVESTMENT COMPANIES			$	25,466
		$	117,557		Total Investments			$	2,457,418
Oil & Gas Services - 0.95%					Other Assets and Liabilities - 0.13%			$	3,194
Schlumberger Ltd	298,957		23,387		TOTAL NET ASSETS - 100.00%			$	2,460,612

Pharmaceuticals - 4.60%
Allergan plc ^(a)	83,846		17,519		(a)	Non-Income Producing Security
Bristol-Myers Squibb Co	162,930		8,295		(b)	Security is Illiquid. At the end of the period, the value of these securities
Johnson & Johnson	292,679		33,948			totaled $0 or 0.00% of net assets.
McKesson Corp	130,010		16,533		(c)	Fair value of these investments is determined in good faith by the Manager
Pfizer Inc	665,193		21,093			under procedures established and periodically reviewed by the Board of
Teva Pharmaceutical Industries Ltd ADR	68,926		2,946			Directors. At the end of the period, the fair value of these securities totaled
VCA Inc ^(a)	209,030		12,847			$0 or 0.00% of net assets.
		$	113,181
Pipelines - 0.56%
Magellan Midstream Partners LP	206,107		13,857
						Portfolio Summary (unaudited)
REITS - 3.92%					Sector				Percent
Alexandria Real Estate Equities Inc	221,841		23,917		Consumer, Non-cyclical				20.10	%
Essex Property Trust Inc	63,833		13,666		Financial				17.10	%
Host Hotels & Resorts Inc	885,199		13,703		Technology				14.69	%
Realty Income Corp	353,545		20,944		Communications				12.42	%
Ventas Inc	233,822		15,841		Industrial				11.15	%
Weyerhaeuser Co	282,014		8,441		Consumer, Cyclical				10.77	%
		$	96,512		Energy				6.29	%
Retail - 5.55%					Utilities				3.34	%
Chipotle Mexican Grill Inc ^(a)	26,364		9,511		Basic Materials				2.98	%
Copart Inc ^(a)	144,184		7,565		Investment Companies				1.03	%
Costco Wholesale Corp	102,777		15,198		Other Assets and Liabilities				0.13	%
CVS Health Corp	332,950		28,001		TOTAL NET ASSETS				100.00	%
Dollar General Corp	322,751		22,299
Home Depot Inc/The	206,009		25,135
Nordstrom Inc	142,953		7,434
Starbucks Corp	403,828		21,431
		$	136,574
Savings & Loans - 0.31%
Washington Federal Inc	282,733		7,704

Semiconductors - 4.36%
Applied Materials Inc	214,581		6,240
Broadcom Ltd	80,218		13,660
Intel Corp	404,727		14,113
Lam Research Corp	267,364		25,897
Microchip Technology Inc	399,475		24,188
NXP Semiconductors NV ^(a)	117,952		11,795
QUALCOMM Inc	164,166		11,281
		$	107,174
Software - 6.72%
Adobe Systems Inc ^(a)	278,167		29,906
Fair Isaac Corp	112,968		13,633
Fidelity National Information Services Inc	299,235		22,119
Microsoft Corp	1,068,258		64,010
Omnicell Inc ^(a)	370,944		12,102
Oracle Corp	551,954		21,206
Tyler Technologies Inc ^(a)	14,948		2,398
		$	165,374
Telecommunications - 2.96%
Cisco Systems Inc	731,977		22,457
Verizon Communications Inc	1,049,368		50,475
		$	72,932
Toys, Games & Hobbies - 0.82%
Hasbro Inc	241,250		20,123

Transportation - 1.01%
Expeditors International of Washington Inc	259,381		13,350


			Schedule of Investments
			Principal LifeTime 2010 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	2,108,311	$	35,631
Bond Market Index Fund ^(a)	9,461,074		106,816
Core Plus Bond Fund ^(a)	20,714,534		228,688
Diversified International Fund ^(a)	4,331,210		49,029
Diversified Real Asset Fund ^(a)	2,879,707		31,562
Equity Income Fund ^(a)	1,287,045		34,390
Global Diversified Income Fund ^(a)	8,039,660		109,822
Global Multi-Strategy Fund ^(a)	6,006,507		64,930
Global Opportunities Fund ^(a)	3,293,331		37,346
Inflation Protection Fund ^(a)	11,946,090		104,170
International Emerging Markets Fund ^(a)	293,591		6,629
LargeCap Growth Fund I ^(a)	2,889,817		34,765
LargeCap S&P 500 Index Fund ^(a)	3,825,502		57,497
LargeCap Value Fund III ^(a)	2,313,222		34,883
MidCap Fund ^(a)	1,156,524		25,686
MidCap Growth Fund III ^(a),(b)	1,263,915		12,374
MidCap Value Fund III ^(a)	684,973		12,699
Origin Emerging Markets Fund ^(a)	857,665		7,625
Overseas Fund ^(a)	4,730,240		44,464
Short-Term Income Fund ^(a)	12,681,383		154,967
SmallCap Growth Fund I ^(a),(b)	1,037,550		11,548
SmallCap Value Fund II ^(a)	992,550		11,851
		$	1,217,372
TOTAL INVESTMENT COMPANIES		$	1,217,372
Total Investments		$	1,217,372
Other Assets and Liabilities - (0.01)%		$	(152	)
TOTAL NET ASSETS - 100.00%		$	1,217,220


Schedule of Investments
Principal LifeTime 2010 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	2,659,289	$	41,909	117,541	$	1,833	668,519		$	10,633	2,108,311	$	33,185
Bond Market Index Fund	8,821,844		98,336	2,405,803		26,610	1,766,573			19,723	9,461,074		105,301
Core Plus Bond Fund	26,892,922		291,998	1,086,562		11,805	7,264,950			78,957	20,714,534		224,841
Diversified International Fund	4,818,194		72,901	361,236		4,006	848,220			9,413	4,331,210		68,416
Diversified Real Asset Fund	5,207,305		55,035	150,144		1,564	2,477,742			25,937	2,879,707		30,435
Equity Income Fund	1,667,795		31,481	69,229		1,774	449,979			11,633	1,287,045		24,276
Global Diversified Income Fund	8,574,083		105,174	972,229		12,865	1,506,652			20,057	8,039,660		97,960
Global Multi-Strategy Fund	4,327,061		45,160	2,718,021		28,770	1,038,575			11,124	6,006,507		62,827
Global Opportunities Fund	1,962,810		21,165	1,866,791		21,266	536,270			6,114	3,293,331		36,364
Inflation Protection Fund	13,326,450		109,943	1,001,396		8,479	2,381,756			20,172	11,946,090		98,337
International Emerging Markets Fund	609,127		17,776	16,178		320	331,714			6,624	293,591		9,557
LargeCap Growth Fund I	3,459,744		25,535	496,371		5,916	1,066,298			12,584	2,889,817		21,055
LargeCap S&P 500 Index Fund	4,521,269		47,647	222,305		3,157	918,072			13,341	3,825,502		37,546
LargeCap Value Fund III	3,257,001		43,459	321,906		4,657	1,265,685			18,587	2,313,222		30,586
MidCap Fund	2,421,295		35,494	193,661		4,009	1,458,432			30,598	1,156,524		16,809
MidCap Growth Fund III	—		—	1,263,915		12,170	—			—	1,263,915		12,170
MidCap Value Fund III	—		—	684,973		12,170	—			—	684,973		12,170
Origin Emerging Markets Fund	1,259,839		12,627	37,933		305	440,107			3,625	857,665		8,710
Overseas Fund	5,202,704		45,965	545,761		5,148	1,018,225			9,460	4,730,240		41,744
Short-Term Income Fund	13,201,654		159,189	1,879,620		22,899	2,399,891			29,212	12,681,383		152,880
SmallCap Growth Fund I	1,541,025		14,203	164,956		1,799	668,431			7,111	1,037,550		8,645
SmallCap Value Fund II	1,503,885		11,631	201,998		2,247	713,333			8,111	992,550		7,672
		$	1,286,628	$		193,769			$	353,016		$	1,141,486


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		202	$			76			$			775
Bond Market Index Fund			1,831				78						118
Core Plus Bond Fund			6,151				(5	)					—
Diversified International Fund			797				922						—
Diversified Real Asset Fund			523				(227	)					—
Equity Income Fund			918				2,654						—
Global Diversified Income Fund			6,288				(22	)					—
Global Multi-Strategy Fund			416				21						939
Global Opportunities Fund			301				47						196
Inflation Protection Fund			885				87						—
International Emerging Markets Fund			107				(1,915	)					—
LargeCap Growth Fund I			27				2,188						5,039
LargeCap S&P 500 Index Fund			1,178				83						515
LargeCap Value Fund III			900				1,057						2,907
MidCap Fund			66				7,904						3,051
MidCap Growth Fund III			—				—						—
MidCap Value Fund III			—				—						—
Origin Emerging Markets Fund			92				(597	)					—
Overseas Fund			952				91						980
Short-Term Income Fund			3,151				4						—
SmallCap Growth Fund I			—				(246	)					1,527
SmallCap Value Fund II			350				1,905						1,624
	$		25,135	$			14,105			$			17,671
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2015 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	1,650,482	$	27,893
Bond Market Index Fund ^(a)	5,542,494		62,575
Core Plus Bond Fund ^(a)	12,986,535		143,371
Diversified International Fund ^(a)	3,343,794		37,852
Diversified Real Asset Fund ^(a)	1,786,222		19,577
Equity Income Fund ^(a)	989,577		26,442
Global Diversified Income Fund ^(a)	4,436,478		60,602
Global Multi-Strategy Fund ^(a)	3,361,853		36,342
Global Opportunities Fund ^(a)	2,790,032		31,639
Inflation Protection Fund ^(a)	5,902,454		51,469
International Emerging Markets Fund ^(a)	212,901		4,807
LargeCap Growth Fund I ^(a)	2,245,981		27,019
LargeCap S&P 500 Index Fund ^(a)	2,961,664		44,514
LargeCap Value Fund III ^(a)	1,790,262		26,997
MidCap Fund ^(a)	1,005,285		22,327
MidCap Growth Fund III ^(a),(b)	845,111		8,274
MidCap Value Fund III ^(a)	478,369		8,869
Origin Emerging Markets Fund ^(a)	594,206		5,282
Overseas Fund ^(a)	3,854,218		36,230
Short-Term Income Fund ^(a)	4,910,086		60,001
SmallCap Growth Fund I ^(a),(b)	827,586		9,211
SmallCap Value Fund II ^(a)	764,035		9,123
		$	760,416
TOTAL INVESTMENT COMPANIES		$	760,416
Total Investments		$	760,416
Other Assets and Liabilities - (0.01)%		$	(98	)
TOTAL NET ASSETS - 100.00%		$	760,318


Schedule of Investments
Principal LifeTime 2015 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	1,905,485	$	30,082	123,322	$	1,942	378,325		$	6,015	1,650,482	$	26,020
Bond Market Index Fund	5,073,585		56,508	1,443,918		16,009	975,009			10,896	5,542,494		61,686
Core Plus Bond Fund	15,327,012		157,454	931,712		10,134	3,272,189			35,583	12,986,535		132,027
Diversified International Fund	3,538,594		30,551	396,139		4,356	590,939			6,539	3,343,794		28,510
Diversified Real Asset Fund	3,395,591		38,380	156,118		1,634	1,765,487			18,473	1,786,222		21,570
Equity Income Fund	1,206,243		23,062	74,624		1,919	291,290			7,517	989,577		18,884
Global Diversified Income Fund	4,493,941		60,970	684,209		9,065	741,672			9,870	4,436,478		60,162
Global Multi-Strategy Fund	2,638,656		27,751	1,261,375		13,360	538,178			5,758	3,361,853		35,378
Global Opportunities Fund	2,429,498		26,202	795,846		8,928	435,312			4,948	2,790,032		30,187
Inflation Protection Fund	6,245,910		51,614	681,614		5,777	1,025,070			8,696	5,902,454		48,695
International Emerging Markets Fund	445,439		6,336	18,481		369	251,019			5,004	212,901		2,793
LargeCap Growth Fund I	2,398,772		14,339	401,400		4,792	554,191			6,518	2,245,981		13,177
LargeCap S&P 500 Index Fund	3,638,157		29,591	245,088		3,512	921,581			13,287	2,961,664		20,118
LargeCap Value Fund III	1,989,409		26,322	246,786		3,584	445,933			6,516	1,790,262		23,666
MidCap Fund	1,017,842		14,935	157,672		3,312	170,229			3,645	1,005,285		14,738
MidCap Growth Fund III	812,686		5,546	185,345		1,803	152,920			1,496	845,111		5,854
MidCap Value Fund III	465,741		7,429	95,056		1,718	82,428			1,497	478,369		7,660
Origin Emerging Markets Fund	925,460		9,339	45,341		368	376,595			3,046	594,206		6,048
Overseas Fund	3,838,731		35,942	724,039		6,712	708,552			6,539	3,854,218		36,110
Short-Term Income Fund	5,085,979		61,823	651,846		7,939	827,739			10,078	4,910,086		59,682
SmallCap Growth Fund I	933,118		6,825	121,236		1,325	226,768			2,440	827,586		5,794
SmallCap Value Fund II	883,292		6,946	140,161		1,570	259,418			2,961	764,035		5,950
		$	727,947	$		110,128			$	177,322		$	664,709


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		147	$			11			$			564
Bond Market Index Fund			1,070				65						69
Core Plus Bond Fund			3,694				22						—
Diversified International Fund			595				142						—
Diversified Real Asset Fund			348				29						—
Equity Income Fund			688				1,420						—
Global Diversified Income Fund			3,399				(3	)					—
Global Multi-Strategy Fund			259				25						583
Global Opportunities Fund			378				5						245
Inflation Protection Fund			422				—						—
International Emerging Markets Fund			80				1,092						—
LargeCap Growth Fund I			19				564						3,541
LargeCap S&P 500 Index Fund			966				302						422
LargeCap Value Fund III			556				276						1,797
MidCap Fund			29				136						1,302
MidCap Growth Fund III			—				1						405
MidCap Value Fund III			108				10						211
Origin Emerging Markets Fund			69				(613	)					—
Overseas Fund			715				(5	)					736
Short-Term Income Fund			1,223				(2	)					—
SmallCap Growth Fund I			—				84						934
SmallCap Value Fund II			206				395						963
	$		14,971	$			3,956			$			11,772
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2020 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	14,877,457	$	251,429
Bond Market Index Fund ^(a)	33,788,910		381,477
Core Plus Bond Fund ^(a)	96,308,830		1,063,249
Diversified International Fund ^(a)	31,227,486		353,495
Diversified Real Asset Fund ^(a)	13,871,275		152,029
Equity Income Fund ^(a)	8,916,249		238,242
Global Diversified Income Fund ^(a)	29,782,425		406,828
Global Multi-Strategy Fund ^(a)	23,868,949		258,023
Global Opportunities Fund ^(a)	25,461,955		288,738
Global Real Estate Securities Fund ^(a)	13,300,434		118,640
Inflation Protection Fund ^(a)	24,671,535		215,136
International Emerging Markets Fund ^(a)	2,120,184		47,874
LargeCap Growth Fund I ^(a)	20,277,516		243,938
LargeCap S&P 500 Index Fund ^(a)	27,413,294		412,022
LargeCap Value Fund III ^(a)	16,212,850		244,490
MidCap Fund ^(a)	9,040,420		200,788
MidCap Growth Fund III ^(a),(b)	8,792,544		86,079
MidCap Value Fund III ^(a)	4,719,560		87,501
Origin Emerging Markets Fund ^(a)	5,026,053		44,682
Overseas Fund ^(a)	36,556,576		343,632
Short-Term Income Fund ^(a)	20,025,572		244,712
SmallCap Growth Fund I ^(a),(b)	7,566,247		84,212
SmallCap Value Fund II ^(a)	7,017,813		83,793
		$	5,851,009
TOTAL INVESTMENT COMPANIES		$	5,851,009
Total Investments		$	5,851,009
Other Assets and Liabilities - (0.01)%		$	(594	)
TOTAL NET ASSETS - 100.00%		$	5,850,415


Schedule of Investments
Principal LifeTime 2020 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	16,237,713	$	255,474	715,272	$	11,172	2,075,528		$	33,256	14,877,457	$	233,784
Bond Market Index Fund	30,608,617		340,933	7,741,919		85,548	4,561,626			51,028	33,788,910		375,886
Core Plus Bond Fund	104,781,338		1,138,199	4,269,527		46,434	12,742,035			138,613	96,308,830		1,046,045
Diversified International Fund	29,604,207		405,783	5,275,718		57,185	3,652,439			40,686	31,227,486		423,333
Diversified Real Asset Fund	23,197,291		259,499	630,316		6,571	9,956,332			104,533	13,871,275		161,116
Equity Income Fund	9,579,567		197,755	424,884		10,924	1,088,202			28,256	8,916,249		179,599
Global Diversified Income Fund	29,394,252		410,926	3,741,970		49,527	3,353,797			44,756	29,782,425		415,661
Global Multi-Strategy Fund	17,600,354		185,229	8,812,995		93,296	2,544,400			27,271	23,868,949		251,359
Global Opportunities Fund	25,632,045		279,118	2,687,469		30,307	2,857,559			32,605	25,461,955		276,881
Global Real Estate Securities Fund	18,763,963		138,885	1,071,842		9,666	6,535,371			59,620	13,300,434		97,829
Inflation Protection Fund	24,711,455		215,696	3,123,691		26,490	3,163,611			26,873	24,671,535		215,371
International Emerging Markets Fund	3,877,397		100,519	99,985		1,979	1,857,198			37,479	2,120,184		60,557
LargeCap Growth Fund I	21,264,018		155,114	3,070,395		36,605	4,056,897			47,919	20,277,516		147,163
LargeCap S&P 500 Index Fund	32,486,736		320,798	1,486,224		21,124	6,559,666			95,211	27,413,294		246,551
LargeCap Value Fund III	18,245,963		242,079	1,840,666		26,637	3,873,779			56,920	16,212,850		214,565
MidCap Fund	7,845,242		144,405	2,212,673		46,136	1,017,495			22,012	9,040,420		168,291
MidCap Growth Fund III	10,783,661		94,410	731,132		7,046	2,722,249			26,485	8,792,544		74,948
MidCap Value Fund III	5,872,899		93,780	318,169		5,694	1,471,508			26,486	4,719,560		75,157
Origin Emerging Markets Fund	6,828,646		69,743	219,089		1,762	2,021,682			16,361	5,026,053		52,350
Overseas Fund	32,926,447		310,830	7,985,917		74,617	4,355,788			40,468	36,556,576		344,952
Short-Term Income Fund	18,318,259		224,090	4,092,131		49,828	2,384,818			29,047	20,025,572		244,814
SmallCap Growth Fund I	9,276,261		88,460	999,522		10,912	2,709,536			28,971	7,566,247		70,018
SmallCap Value Fund II	9,191,608		74,730	1,242,015		13,821	3,415,810			38,971	7,017,813		54,307
		$	5,746,455	$		723,281			$	1,053,827		$	5,430,537


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		1,250	$			394			$			4,804
Bond Market Index Fund			6,448				433						415
Core Plus Bond Fund			26,329				25						—
Diversified International Fund			4,977				1,051						—
Diversified Real Asset Fund			2,379				(421	)					—
Equity Income Fund			5,805				(824	)					—
Global Diversified Income Fund			22,540				(36	)					—
Global Multi-Strategy Fund			1,724				105						3,885
Global Opportunities Fund			3,985				61						2,588
Global Real Estate Securities Fund			3,935				8,898						3,026
Inflation Protection Fund			1,669				58						—
International Emerging Markets Fund			693				(4,462	)					—
LargeCap Growth Fund I			171				3,363						31,376
LargeCap S&P 500 Index Fund			8,626				(160	)					3,767
LargeCap Value Fund III			5,102				2,769						16,476
MidCap Fund			219				(238	)					10,026
MidCap Growth Fund III			—				(23	)					5,386
MidCap Value Fund III			1,367				2,169						2,666
Origin Emerging Markets Fund			506				(2,794	)					—
Overseas Fund			6,135				(27	)					6,305
Short-Term Income Fund			4,699				(57	)					—
SmallCap Growth Fund I			—				(383	)					9,286
SmallCap Value Fund II			2,164				4,727						10,031
	$		110,723	$			14,628			$			110,037
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2025 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	4,939,142	$	83,471
Bond Market Index Fund ^(a)	10,111,958		114,164
Core Plus Bond Fund ^(a)	23,867,494		263,497
Diversified International Fund ^(a)	10,554,758		119,480
Diversified Real Asset Fund ^(a)	3,872,024		42,437
Equity Income Fund ^(a)	3,008,707		80,393
Global Diversified Income Fund ^(a)	7,300,264		99,722
Global Multi-Strategy Fund ^(a)	6,179,483		66,800
Global Opportunities Fund ^(a)	8,340,392		94,580
Global Real Estate Securities Fund ^(a)	5,503,849		49,094
Inflation Protection Fund ^(a)	6,155,057		53,672
International Emerging Markets Fund ^(a)	685,147		15,471
LargeCap Growth Fund I ^(a)	6,942,532		83,519
LargeCap S&P 500 Index Fund ^(a)	9,156,277		137,619
LargeCap Value Fund III ^(a)	5,408,728		81,564
MidCap Fund ^(a)	2,316,930		51,459
MidCap Growth Fund III ^(a),(b)	3,706,828		36,290
MidCap Value Fund III ^(a)	2,039,437		37,811
Origin Emerging Markets Fund ^(a)	1,698,215		15,097
Overseas Fund ^(a)	12,211,827		114,791
SmallCap Growth Fund I ^(a),(b)	2,291,431		25,504
SmallCap Value Fund II ^(a)	2,225,406		26,571
		$	1,693,006
TOTAL INVESTMENT COMPANIES		$	1,693,006
Total Investments		$	1,693,006
Other Assets and Liabilities - (0.01)%		$	(204	)
TOTAL NET ASSETS - 100.00%		$	1,692,802


Schedule of Investments
Principal LifeTime 2025 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	5,094,465	$	81,074	739,418	$	11,652	894,741		$	14,247	4,939,142	$	78,422
Bond Market Index Fund	7,213,826		80,292	3,558,576		39,600	660,444			7,375	10,111,958		112,523
Core Plus Bond Fund	22,926,644		242,606	3,374,161		36,707	2,433,311			26,506	23,867,494		252,811
Diversified International Fund	8,513,864		82,478	2,715,458		29,982	674,564			7,512	10,554,758		104,949
Diversified Real Asset Fund	5,728,077		67,000	674,717		7,087	2,530,770			26,584	3,872,024		47,005
Equity Income Fund	2,762,657		73,544	449,017		11,543	202,967			5,247	3,008,707		79,837
Global Diversified Income Fund	6,065,054		85,372	1,693,555		22,450	458,345			6,106	7,300,264		101,707
Global Multi-Strategy Fund	3,941,686		41,504	2,598,526		27,557	360,729			3,865	6,179,483		65,196
Global Opportunities Fund	5,896,483		64,784	2,954,524		33,485	510,615			5,827	8,340,392		92,440
Global Real Estate Securities Fund	6,032,573		45,911	915,717		8,273	1,444,441			13,184	5,503,849		41,598
Inflation Protection Fund	5,766,002		50,472	785,040		6,633	395,985			3,354	6,155,057		53,749
International Emerging Markets Fund	1,198,334		23,485	124,235		2,480	637,422			12,759	685,147		13,721
LargeCap Growth Fund I	6,665,544		47,115	1,666,169		19,766	1,389,181			16,249	6,942,532		50,361
LargeCap S&P 500 Index Fund	9,205,555		87,765	1,406,676		20,220	1,455,954			20,987	9,156,277		86,924
LargeCap Value Fund III	5,337,122		71,309	1,110,614		16,136	1,039,008			15,247	5,408,728		72,318
MidCap Fund	1,441,970		29,655	1,011,383		21,476	136,423			2,952	2,316,930		48,168
MidCap Growth Fund III	3,420,780		32,906	623,434		6,041	337,386			3,310	3,706,828		35,643
MidCap Value Fund III	1,907,174		30,866	315,476		5,675	183,213			3,334	2,039,437		33,210
Origin Emerging Markets Fund	2,541,821		25,741	303,471		2,455	1,147,077			9,260	1,698,215		17,486
Overseas Fund	9,505,777		96,332	3,511,047		32,623	804,997			7,481	12,211,827		121,475
SmallCap Growth Fund I	2,236,046		20,242	489,259		5,302	433,874			4,638	2,291,431		20,819
SmallCap Value Fund II	2,186,845		20,120	536,787		6,036	498,226			5,672	2,225,406		20,606
		$	1,400,573	$		373,179			$	221,696		$	1,550,968


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		399	$			(57	)		$			1,533
Bond Market Index Fund			1,548				6						100
Core Plus Bond Fund			6,149				4						—
Diversified International Fund			1,464				1						—
Diversified Real Asset Fund			602				(498	)					—
Equity Income Fund			1,823				(3	)					—
Global Diversified Income Fund			5,079				(9	)					—
Global Multi-Strategy Fund			395				—						886
Global Opportunities Fund			936				(2	)					605
Global Real Estate Securities Fund			1,377				598						988
Inflation Protection Fund			399				(2	)					—
International Emerging Markets Fund			219				515						—
LargeCap Growth Fund I			54				(271	)					9,991
LargeCap S&P 500 Index Fund			2,486				(74	)					1,086
LargeCap Value Fund III			1,517				120						4,899
MidCap Fund			41				(11	)					1,878
MidCap Growth Fund III			—				6						1,732
MidCap Value Fund III			450				3						878
Origin Emerging Markets Fund			194				(1,450	)					—
Overseas Fund			1,812				1						1,855
SmallCap Growth Fund I			—				(87	)					2,271
SmallCap Value Fund II			521				122						2,420
	$		27,465	$			(1,088	)		$			31,122
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2030 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)	16,843,143	$	284,649
Bond Market Index Fund ^(a)	25,945,420		292,924
Core Plus Bond Fund ^(a)	78,909,456		871,160
Diversified International Fund ^(a)	46,111,987		521,988
Diversified Real Asset Fund ^(a)	15,246,770		167,105
Equity Income Fund ^(a)	8,656,512		231,302
Global Diversified Income Fund ^(a)	22,194,459		303,176
Global Multi-Strategy Fund ^(a)	20,755,076		224,362
Global Opportunities Fund ^(a)	36,997,830		419,555
Global Real Estate Securities Fund ^(a)	24,681,249		220,157
Inflation Protection Fund ^(a)	15,910,869		138,743
International Emerging Markets Fund ^(a)	2,981,926		67,332
LargeCap Growth Fund I ^(a)	35,393,364		425,782
LargeCap S&P 500 Index Fund ^(a)	39,659,893		596,088
LargeCap Value Fund ^(a)	19,999,338		229,192
LargeCap Value Fund III ^(a)	15,924,037		240,134
MidCap Fund ^(a)	7,048,074		156,538
MidCap Growth Fund III ^(a),(b)	18,942,974		185,452
MidCap Value Fund III ^(a)	10,218,643		189,454
Origin Emerging Markets Fund ^(a)	7,279,541		64,715
Overseas Fund ^(a)	54,374,463		511,120
SmallCap Growth Fund I ^(a),(b)	10,441,494		116,214
SmallCap Value Fund II ^(a)	10,124,039		120,881
		$	6,578,023
TOTAL INVESTMENT COMPANIES		$	6,578,023
Total Investments		$	6,578,023
Other Assets and Liabilities - (0.01)%		$	(643	)
TOTAL NET ASSETS - 100.00%		$	6,577,380


Schedule of Investments
Principal LifeTime 2030 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	17,080,761	$	272,653	1,289,093	$	20,151	1,526,711		$	24,752	16,843,143	$	268,503
Bond Market Index Fund	23,752,774		264,598	4,977,397		55,244	2,784,751			31,196	25,945,420		288,860
Core Plus Bond Fund	79,700,305		866,289	5,383,338		58,487	6,174,187			67,425	78,909,456		857,366
Diversified International Fund	40,951,567		534,825	9,060,316		99,062	3,899,896			43,776	46,111,987		590,090
Diversified Real Asset Fund	23,699,339		274,285	1,184,167		12,372	9,636,736			100,773	15,246,770		185,824
Equity Income Fund	8,775,212		233,873	651,959		16,726	770,659			20,160	8,656,512		230,462
Global Diversified Income Fund	19,895,311		279,484	4,117,892		54,480	1,818,744			24,370	22,194,459		309,506
Global Multi-Strategy Fund	18,242,606		193,218	4,257,981		45,136	1,745,511			18,744	20,755,076		219,597
Global Opportunities Fund	26,617,749		292,546	13,334,596		149,810	2,954,515			33,917	36,997,830		408,433
Global Real Estate Securities Fund	27,686,728		207,319	2,383,706		21,460	5,389,185			49,315	24,681,249		184,178
Inflation Protection Fund	16,444,498		143,752	986,722		8,290	1,520,351			12,938	15,910,869		139,072
International Emerging Markets Fund	5,401,684		131,320	250,791		4,968	2,670,549			52,606	2,981,926		78,807
LargeCap Growth Fund I	37,933,757		284,593	6,436,212		76,443	8,976,605			105,634	35,393,364		263,859
LargeCap S&P 500 Index Fund	44,157,490		468,999	3,209,288		45,745	7,706,885			111,760	39,659,893		402,899
LargeCap Value Fund	22,067,252		201,935	3,161,207		36,472	5,229,121			60,160	19,999,338		178,052
LargeCap Value Fund III	17,151,944		226,850	2,185,799		31,620	3,413,706			50,161	15,924,037		210,459
MidCap Fund	2,886,030		67,622	4,684,567		98,892	522,523			11,515	7,048,074		154,920
MidCap Growth Fund III	20,750,141		205,627	2,032,276		19,558	3,839,443			37,502	18,942,974		187,637
MidCap Value Fund III	11,079,368		179,114	939,773		16,797	1,800,498			32,503	10,218,643		163,729
Origin Emerging Markets Fund	10,892,910		111,333	590,257		4,748	4,203,626			33,761	7,279,541		76,158
Overseas Fund	46,537,809		441,339	12,518,606		116,581	4,681,952			43,776	54,374,463		514,110
SmallCap Growth Fund I	10,757,702		102,976	1,483,793		16,078	1,800,001			19,471	10,441,494		99,511
SmallCap Value Fund II	10,136,306		84,201	1,689,182		18,826	1,701,449			19,566	10,124,039		83,547
		$	6,068,751		$	1,027,946			$	1,005,781		$	6,095,579


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		1,323	$			451			$			5,082
Bond Market Index Fund			5,036				214						324
Core Plus Bond Fund			20,893				15						—
Diversified International Fund			6,940				(21	)					—
Diversified Real Asset Fund			2,452				(60	)					—
Equity Income Fund			5,504				23						—
Global Diversified Income Fund			16,080				(88	)					—
Global Multi-Strategy Fund			1,802				(13	)					4,051
Global Opportunities Fund			4,167				(6	)					2,699
Global Real Estate Securities Fund			6,250				4,714						4,488
Inflation Protection Fund			1,121				(32	)					—
International Emerging Markets Fund			974				(4,875	)					—
LargeCap Growth Fund I			306				8,457						56,279
LargeCap S&P 500 Index Fund			11,794				(85	)					5,148
LargeCap Value Fund			6,884				(195	)					18,366
LargeCap Value Fund III			4,825				2,150						15,573
MidCap Fund			81				(79	)					3,709
MidCap Growth Fund III			—				(46	)					10,394
MidCap Value Fund III			2,589				321						5,044
Origin Emerging Markets Fund			817				(6,162	)					—
Overseas Fund			8,744				(34	)					8,966
SmallCap Growth Fund I			—				(72	)					10,810
SmallCap Value Fund II			2,395				86						11,100
	$		110,977	$			4,663			$			162,033
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2035 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Bond Market Index Fund ^(a)	7,172,856	$	80,982
Core Plus Bond Fund ^(a)	13,500,898		149,050
Diversified International Fund ^(a)	9,770,055		110,597
Diversified Real Asset Fund ^(a)	3,067,148		33,616
Global Opportunities Fund ^(a)	4,026,039		45,655
Global Real Estate Securities Fund ^(a)	5,447,355		48,590
High Yield Fund I ^(a)	2,700,147		26,489
Inflation Protection Fund ^(a)	2,209,037		19,263
International Emerging Markets Fund ^(a)	707,714		15,980
LargeCap Growth Fund ^(a)	2,248,011		22,233
LargeCap Growth Fund I ^(a)	11,992,283		144,267
LargeCap S&P 500 Index Fund ^(a)	9,033,543		135,774
LargeCap Value Fund ^(a)	6,691,480		76,684
LargeCap Value Fund III ^(a)	5,276,815		79,574
MidCap Growth Fund III ^(a),(b)	6,093,883		59,659
MidCap Value Fund III ^(a)	3,305,830		61,290
Origin Emerging Markets Fund ^(a)	1,691,717		15,039
Overseas Fund ^(a)	12,013,709		112,929
SmallCap Growth Fund I ^(a),(b)	2,322,371		25,848
SmallCap Value Fund II ^(a)	2,222,229		26,534
		$	1,290,053
TOTAL INVESTMENT COMPANIES		$	1,290,053
Total Investments		$	1,290,053
Other Assets and Liabilities - (0.01)%		$	(150	)
TOTAL NET ASSETS - 100.00%		$	1,289,903


Schedule of Investments
Principal LifeTime 2035 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	3,855,239	$	43,014	3,676,816	$	40,827	359,199		$	4,024	7,172,856	$	79,818
Core Plus Bond Fund	11,782,119		125,933	2,806,290		30,485	1,087,511			11,867	13,500,898		144,550
Diversified International Fund	7,694,779		75,589	2,691,543		29,717	616,267			6,922	9,770,055		98,384
Diversified Real Asset Fund	4,051,039		47,978	492,771		5,156	1,476,662			15,521	3,067,148		37,283
Global Multi-Strategy Fund	2,964,573		31,490	246,903		2,621	3,211,476			33,981	—		—
Global Opportunities Fund	5,419,725		60,750	692,738		7,825	2,086,424			23,397	4,026,039		44,942
Global Real Estate Securities Fund	5,322,554		40,589	905,983		8,143	781,182			7,140	5,447,355		41,594
High Yield Fund I	2,289,492		22,344	578,781		5,436	168,126			1,591	2,700,147		26,188
Inflation Protection Fund	1,828,690		15,903	521,084		4,422	140,737			1,195	2,209,037		19,130
International Emerging Markets Fund	1,046,982		20,987	117,124		2,325	456,392			9,150	707,714		13,778
LargeCap Growth Fund	3,277,876		22,450	537,458		5,457	1,567,323			15,410	2,248,011		12,962
LargeCap Growth Fund I	9,616,909		81,402	2,643,213		31,240	267,839			3,276	11,992,283		109,355
LargeCap S&P 500 Index Fund	8,661,487		91,660	1,349,026		19,327	976,970			14,314	9,033,543		96,686
LargeCap Value Fund	5,721,613		56,694	1,383,451		15,887	413,584			4,834	6,691,480		67,745
LargeCap Value Fund III	5,022,478		67,598	1,058,606		15,339	804,269			11,852	5,276,815		71,083
MidCap Growth Fund III	4,174,132		42,587	2,271,724		21,910	351,973			3,503	6,093,883		60,994
MidCap Value Fund III	2,296,950		39,082	1,198,950		21,398	190,070			3,503	3,305,830		56,977
Origin Emerging Markets Fund	2,101,719		21,299	290,779		2,340	700,781			5,671	1,691,717		17,433
Overseas Fund	8,629,099		88,756	4,123,021		38,221	738,411			6,921	12,013,709		120,054
SmallCap Growth Fund I	1,998,843		19,156	457,867		4,931	134,339			1,513	2,322,371		22,573
SmallCap Value Fund II	1,866,881		17,851	485,525		5,443	130,177			1,533	2,222,229		21,760
		$	1,033,112	$		318,450			$	187,118		$	1,163,289


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		824	$			1			$			53
Core Plus Bond Fund			3,352				(1	)					—
Diversified International Fund			1,316				—						—
Diversified Real Asset Fund			423				(330	)					—
Global Multi-Strategy Fund			295				(130	)					664
Global Opportunities Fund			855				(236	)					554
Global Real Estate Securities Fund			1,245				2						869
High Yield Fund I			1,376				(1	)					—
Inflation Protection Fund			126				—						—
International Emerging Markets Fund			191				(384	)					—
LargeCap Growth Fund			102				465						3,542
LargeCap Growth Fund I			78				(11	)					14,367
LargeCap S&P 500 Index Fund			2,333				13						1,018
LargeCap Value Fund			1,799				(2	)					4,798
LargeCap Value Fund III			1,424				(2	)					4,595
MidCap Growth Fund III			—				—						2,108
MidCap Value Fund III			541				—						1,054
Origin Emerging Markets Fund			159				(535	)					—
Overseas Fund			1,637				(2	)					1,677
SmallCap Growth Fund I			—				(1	)					2,024
SmallCap Value Fund II			445				(1	)					2,060
	$		18,521	$			(1,155	)		$			39,383
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2040 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Bond Market Index Fund ^(a)	17,641,891	$	199,177
Core Plus Bond Fund ^(a)	34,150,438		377,021
Diversified International Fund ^(a)	37,682,684		426,568
Diversified Real Asset Fund ^(a)	10,139,661		111,131
Global Opportunities Fund ^(a)	14,486,720		164,279
Global Real Estate Securities Fund ^(a)	21,032,264		187,608
High Yield Fund I ^(a)	8,756,683		85,903
Inflation Protection Fund ^(a)	4,723,707		41,191
International Emerging Markets Fund ^(a)	2,475,956		55,907
LargeCap Growth Fund ^(a)	8,178,326		80,884
LargeCap Growth Fund I ^(a)	40,726,463		489,939
LargeCap S&P 500 Index Fund ^(a)	32,259,633		484,862
LargeCap Value Fund ^(a)	23,846,069		273,276
LargeCap Value Fund III ^(a)	19,259,471		290,433
MidCap Growth Fund III ^(a),(b)	21,528,338		210,762
MidCap Value Fund III ^(a)	11,484,284		212,919
Origin Emerging Markets Fund ^(a)	5,897,589		52,429
Overseas Fund ^(a)	45,193,717		424,821
SmallCap Growth Fund I ^(a),(b)	8,375,719		93,222
SmallCap Value Fund II ^(a)	7,795,335		93,076
		$	4,355,408
TOTAL INVESTMENT COMPANIES		$	4,355,408
Total Investments		$	4,355,408
Other Assets and Liabilities - (0.01)%		$	(441	)
TOTAL NET ASSETS - 100.00%		$	4,354,967


Schedule of Investments
Principal LifeTime 2040 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	9,211,509	$	102,550	9,742,554	$	107,987	1,312,172		$	14,728	17,641,891	$	195,911
Core Plus Bond Fund	30,008,733		326,492	6,965,099		75,419	2,823,394			30,900	34,150,438		371,083
Diversified International Fund	32,046,469		394,473	8,780,990		96,438	3,144,775			35,341	37,682,684		455,579
Diversified Real Asset Fund	12,193,729		140,801	879,275		9,197	2,933,343			31,608	10,139,661		118,489
Global Multi-Strategy Fund	9,959,184		105,113	582,544		6,191	10,541,728			111,562	—		—
Global Opportunities Fund	20,281,576		225,433	1,540,853		17,474	7,335,709			82,348	14,486,720		160,183
Global Real Estate Securities Fund	24,313,186		185,229	2,368,445		21,294	5,649,367			51,625	21,032,264		157,063
High Yield Fund I	8,463,069		81,793	1,082,962		10,158	789,348			7,501	8,756,683		84,445
Inflation Protection Fund	4,222,674		35,934	941,560		7,984	440,527			3,751	4,723,707		40,180
International Emerging Markets Fund	4,174,608		95,626	247,735		4,913	1,946,387			39,357	2,475,956		58,714
LargeCap Growth Fund	13,713,635		88,837	1,882,661		19,232	7,417,970			74,551	8,178,326		46,699
LargeCap Growth Fund I	34,735,339		266,840	6,976,858		82,749	985,734			11,888	40,726,463		337,651
LargeCap S&P 500 Index Fund	35,067,635		380,696	3,044,711		43,448	5,852,713			85,625	32,259,633		338,340
LargeCap Value Fund	22,839,152		231,293	3,787,245		43,626	2,780,328			32,188	23,846,069		242,766
LargeCap Value Fund III	19,770,087		264,059	2,838,194		41,078	3,348,810			49,313	19,259,471		256,662
MidCap Growth Fund III	16,445,316		167,802	6,894,848		66,926	1,811,826			18,018	21,528,338		216,724
MidCap Value Fund III	8,334,408		140,794	4,127,827		74,425	977,951			18,018	11,484,284		197,173
Origin Emerging Markets Fund	8,425,573		86,435	603,019		4,852	3,131,003			25,418	5,897,589		61,808
Overseas Fund	35,109,675		348,534	13,861,366		128,876	3,777,324			35,340	45,193,717		442,013
SmallCap Growth Fund I	7,912,144		78,013	1,246,644		13,495	783,069			8,688	8,375,719		82,840
SmallCap Value Fund II	7,422,460		63,357	1,387,402		15,493	1,014,527			11,750	7,795,335		67,083
		$	3,810,104	$		891,255			$	779,518		$	3,931,406


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		1,960	$			102			$			126
Core Plus Bond Fund			8,606				72						—
Diversified International Fund			5,451				9						—
Diversified Real Asset Fund			1,267				99						—
Global Multi-Strategy Fund			987				258						2,218
Global Opportunities Fund			3,186				(376	)					2,064
Global Real Estate Securities Fund			5,368				2,165						3,952
High Yield Fund I			4,769				(5	)					—
Inflation Protection Fund			289				13						—
International Emerging Markets Fund			755				(2,468	)					—
LargeCap Growth Fund			424				13,181						14,747
LargeCap Growth Fund I			281				(50	)					51,667
LargeCap S&P 500 Index Fund			9,396				(179	)					4,100
LargeCap Value Fund			7,146				35						19,057
LargeCap Value Fund III			5,578				838						18,003
MidCap Growth Fund III			—				14						8,260
MidCap Value Fund III			1,954				(28	)					3,804
Origin Emerging Markets Fund			635				(4,061	)					—
Overseas Fund			6,621				(57	)					6,785
SmallCap Growth Fund I			—				20						7,972
SmallCap Value Fund II			1,759				(17	)					8,150
	$		66,432	$			9,565			$			150,905
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2045 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Bond Market Index Fund ^(a)	2,539,656	$	28,673
Core Plus Bond Fund ^(a)	4,985,294		55,038
Diversified International Fund ^(a)	7,585,999		85,873
Diversified Real Asset Fund ^(a)	2,042,392		22,385
Global Opportunities Fund ^(a)	3,000,826		34,029
Global Real Estate Securities Fund ^(a)	4,550,549		40,591
High Yield Fund I ^(a)	1,801,565		17,673
International Emerging Markets Fund ^(a)	508,925		11,492
LargeCap Growth Fund ^(a)	1,151,462		11,388
LargeCap Growth Fund I ^(a)	8,792,590		105,775
LargeCap S&P 500 Index Fund ^(a)	6,607,062		99,304
LargeCap Value Fund ^(a)	4,955,073		56,785
LargeCap Value Fund III ^(a)	3,945,110		59,492
MidCap Growth Fund III ^(a),(b)	4,489,896		43,956
MidCap Value Fund III ^(a)	2,428,207		45,019
Origin Emerging Markets Fund ^(a)	1,193,734		10,612
Overseas Fund ^(a)	9,063,181		85,194
SmallCap Growth Fund I ^(a),(b)	1,626,436		18,102
SmallCap Value Fund II ^(a)	1,638,419		19,563
		$	850,944
TOTAL INVESTMENT COMPANIES		$	850,944
Total Investments		$	850,944
Other Assets and Liabilities - (0.01)%		$	(107	)
TOTAL NET ASSETS - 100.00%		$	850,837


Schedule of Investments
Principal LifeTime 2045 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	1,193,695	$	13,338	1,460,884	$	16,268	114,923		$	1,289	2,539,656	$	28,318
Core Plus Bond Fund	3,521,546		37,922	1,720,209		18,644	256,461			2,802	4,985,294		53,764
Diversified International Fund	5,449,352		55,698	2,547,364		27,825	410,717			4,589	7,585,999		78,934
Diversified Real Asset Fund	2,130,771		25,299	412,598		4,329	500,977			5,391	2,042,392		24,267
Global Multi-Strategy Fund	1,413,532		14,972	161,436		1,713	1,574,968			16,666	—		—
Global Opportunities Fund	3,850,205		43,559	694,930		7,844	1,544,309			17,323	3,000,826		33,889
Global Real Estate Securities Fund	4,379,988		35,103	974,319		8,762	803,758			7,337	4,550,549		36,521
High Yield Fund I	1,399,880		13,982	501,822		4,722	100,137			946	1,801,565		17,758
International Emerging Markets Fund	720,362		15,685	119,453		2,376	330,890			6,773	508,925		11,165
LargeCap Growth Fund	2,326,543		17,709	444,553		4,501	1,619,634			16,270	1,151,462		6,809
LargeCap Growth Fund I	6,648,723		61,758	2,322,276		27,420	178,409			2,144	8,792,590		87,035
LargeCap S&P 500 Index Fund	5,746,701		63,444	1,304,112		18,720	443,751			6,492	6,607,062		75,671
LargeCap Value Fund	3,988,338		42,026	1,242,421		14,252	275,686			3,203	4,955,073		53,073
LargeCap Value Fund III	3,543,253		47,929	962,532		13,964	560,675			8,225	3,945,110		53,677
MidCap Growth Fund III	2,920,579		30,870	1,803,845		17,526	234,528			2,320	4,489,896		46,075
MidCap Value Fund III	1,603,780		28,034	951,053		17,162	126,626			2,320	2,428,207		42,875
Origin Emerging Markets Fund	1,575,684		15,991	289,710		2,337	671,660			5,464	1,193,734		12,349
Overseas Fund	6,094,986		64,030	3,459,564		32,103	491,369			4,577	9,063,181		91,556
SmallCap Growth Fund I	1,309,637		13,540	408,064		4,390	91,265			1,017	1,626,436		16,913
SmallCap Value Fund II	1,296,591		13,392	430,092		4,836	88,264			1,028	1,638,419		17,199
		$	654,281	$		249,694			$	116,176		$	787,848


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		258	$			1			$			17
Core Plus Bond Fund			1,143				—						—
Diversified International Fund			946				—						—
Diversified Real Asset Fund			226				30						—
Global Multi-Strategy Fund			143				(19	)					320
Global Opportunities Fund			616				(191	)					398
Global Real Estate Securities Fund			1,032				(7	)					722
High Yield Fund I			885				—						—
International Emerging Markets Fund			133				(123	)					—
LargeCap Growth Fund			73				869						2,538
LargeCap Growth Fund I			55				1						10,017
LargeCap S&P 500 Index Fund			1,566				(1	)					682
LargeCap Value Fund			1,268				(2	)					3,378
LargeCap Value Fund III			1,015				9						3,273
MidCap Growth Fund III			—				(1	)					1,491
MidCap Value Fund III			383				(1	)					744
Origin Emerging Markets Fund			121				(515	)					—
Overseas Fund			1,174				—						1,197
SmallCap Growth Fund I			—				—						1,339
SmallCap Value Fund II			313				(1	)					1,445
	$		11,350	$			49			$			27,561
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2050 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.01%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.01%
Bond Market Index Fund ^(a)	4,604,122	$	51,981
Core Plus Bond Fund ^(a)	9,530,290		105,214
Diversified International Fund ^(a)	22,417,747		253,769
Diversified Real Asset Fund ^(a)	5,393,029		59,108
Global Opportunities Fund ^(a)	8,601,564		97,542
Global Real Estate Securities Fund ^(a)	12,975,408		115,741
High Yield Fund I ^(a)	5,116,493		50,193
International Emerging Markets Fund ^(a)	1,444,563		32,618
LargeCap Growth Fund ^(a)	3,901,896		38,590
LargeCap Growth Fund I ^(a)	25,106,068		302,026
LargeCap S&P 500 Index Fund ^(a)	18,726,569		281,460
LargeCap Value Fund ^(a)	14,260,658		163,427
LargeCap Value Fund III ^(a)	11,225,062		169,274
MidCap Growth Fund III ^(a),(b)	12,747,509		124,798
MidCap Value Fund III ^(a)	7,025,430		130,251
Origin Emerging Markets Fund ^(a)	3,490,642		31,032
Overseas Fund ^(a)	26,633,446		250,354
SmallCap Growth Fund I ^(a),(b)	4,646,226		51,712
SmallCap Value Fund II ^(a)	4,522,239		53,996
		$	2,363,086
TOTAL INVESTMENT COMPANIES		$	2,363,086
Total Investments		$	2,363,086
Other Assets and Liabilities - (0.01)%		$	(198	)
TOTAL NET ASSETS - 100.00%		$	2,362,888


Schedule of Investments
Principal LifeTime 2050 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	2,228,942	$	24,902	2,700,543	$	30,119	325,363		$	3,653	4,604,122	$	51,384
Core Plus Bond Fund	7,618,261		83,094	2,651,499		28,803	739,470			8,086	9,530,290		103,816
Diversified International Fund	17,375,288		207,681	6,795,037		73,708	1,752,578			19,645	22,417,747		261,739
Diversified Real Asset Fund	5,439,170		63,429	718,227		7,541	764,368			8,224	5,393,029		62,782
Global Multi-Strategy Fund	4,103,318		43,265	340,567		3,620	4,443,885			47,021	—		—
Global Opportunities Fund	12,283,084		138,942	1,456,874		16,472	5,138,394			57,806	8,601,564		97,032
Global Real Estate Securities Fund	12,593,506		96,412	1,984,802		17,827	1,602,900			14,692	12,975,408		99,607
High Yield Fund I	4,689,868		47,894	836,186		7,835	409,561			3,877	5,116,493		51,851
International Emerging Markets Fund	2,438,665		57,969	237,547		4,705	1,231,649			25,099	1,444,563		36,501
LargeCap Growth Fund	7,568,932		52,928	1,238,106		12,608	4,905,142			49,311	3,901,896		21,840
LargeCap Growth Fund I	20,473,421		170,989	5,293,088		62,629	660,441			7,944	25,106,068		225,663
LargeCap S&P 500 Index Fund	17,677,678		193,478	2,640,581		37,739	1,591,690			23,375	18,726,569		207,899
LargeCap Value Fund	12,599,905		132,160	2,835,803		32,589	1,175,050			13,645	14,260,658		151,093
LargeCap Value Fund III	11,965,496		160,876	2,236,720		32,391	2,977,154			43,645	11,225,062		150,436
MidCap Growth Fund III	8,864,984		91,574	4,886,148		47,489	1,003,623			9,964	12,747,509		129,107
MidCap Value Fund III	4,992,429		86,963	2,575,055		46,478	542,054			9,964	7,025,430		123,467
Origin Emerging Markets Fund	5,225,385		53,721	587,702		4,728	2,322,445			18,658	3,490,642		36,565
Overseas Fund	19,413,180		196,724	9,323,599		86,211	2,103,333			19,646	26,633,446		263,269
SmallCap Growth Fund I	4,116,633		42,717	915,141		9,865	385,548			4,304	4,646,226		48,275
SmallCap Value Fund II	3,913,376		35,496	977,448		10,950	368,585			4,302	4,522,239		42,119
		$	1,981,214	$		574,307			$	392,861		$	2,164,445


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		477	$			16			$			31
Core Plus Bond Fund			2,289				5						—
Diversified International Fund			2,984				(5	)					—
Diversified Real Asset Fund			571				36						—
Global Multi-Strategy Fund			410				136						921
Global Opportunities Fund			1,947				(576	)					1,258
Global Real Estate Securities Fund			2,970				60						2,061
High Yield Fund I			2,717				(1	)					—
International Emerging Markets Fund			445				(1,074	)					—
LargeCap Growth Fund			236				5,615						8,194
LargeCap Growth Fund I			167				(11	)					30,639
LargeCap S&P 500 Index Fund			4,775				57						2,082
LargeCap Value Fund			3,972				(11	)					10,588
LargeCap Value Fund III			3,398				814						10,964
MidCap Growth Fund III			—				8						4,487
MidCap Value Fund III			1,180				(10	)					2,296
Origin Emerging Markets Fund			398				(3,226	)					—
Overseas Fund			3,697				(20	)					3,781
SmallCap Growth Fund I			—				(3	)					4,177
SmallCap Value Fund II			934				(25	)					4,328
	$		33,567	$			1,785			$			85,807
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2055 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.02%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.02%
Bond Market Index Fund ^(a)	425,170	$	4,800
Core Plus Bond Fund ^(a)	876,556		9,677
Diversified International Fund ^(a)	2,944,319		33,330
Diversified Real Asset Fund ^(a)	645,223		7,071
Global Opportunities Fund ^(a)	1,138,455		12,910
Global Real Estate Securities Fund ^(a)	1,699,326		15,158
High Yield Fund I ^(a)	626,089		6,142
International Emerging Markets Fund ^(a)	190,621		4,304
LargeCap Growth Fund ^(a)	637,600		6,306
LargeCap Growth Fund I ^(a)	3,240,955		38,989
LargeCap S&P 500 Index Fund ^(a)	2,543,569		38,230
LargeCap Value Fund ^(a)	1,905,121		21,833
LargeCap Value Fund III ^(a)	1,492,424		22,506
MidCap Growth Fund III ^(a),(b)	1,692,659		16,571
MidCap Value Fund III ^(a)	925,643		17,161
Origin Emerging Markets Fund ^(a)	467,015		4,152
Overseas Fund ^(a)	3,414,884		32,100
SmallCap Growth Fund I ^(a),(b)	621,864		6,921
SmallCap Value Fund II ^(a)	600,824		7,174
		$	305,335
TOTAL INVESTMENT COMPANIES		$	305,335
Total Investments		$	305,335
Other Assets and Liabilities - (0.02)%		$	(47	)
TOTAL NET ASSETS - 100.00%		$	305,288


Schedule of Investments
Principal LifeTime 2055 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	109,851	$	1,225	325,089	$	3,624	9,770		$	110	425,170	$	4,739
Core Plus Bond Fund	384,068		4,130	514,505		5,599	22,017			241	876,556		9,488
Diversified International Fund	1,743,314		19,246	1,286,363		14,046	85,358			960	2,944,319		32,332
Diversified Real Asset Fund	454,626		5,418	212,189		2,250	21,592			233	645,223		7,435
Global Multi-Strategy Fund	359,446		3,862	67,471		716	426,917			4,519	—		—
Global Opportunities Fund	1,244,487		14,468	428,464		4,834	534,496			6,008	1,138,455		13,234
Global Real Estate Securities Fund	1,310,690		10,985	549,124		4,955	160,488			1,466	1,699,326		14,475
High Yield Fund I	427,805		4,380	218,030		2,050	19,746			187	626,089		6,243
International Emerging Markets Fund	226,398		5,231	72,833		1,456	108,610			2,165	190,621		4,473
LargeCap Growth Fund	731,071		6,692	190,756		1,921	284,227			2,861	637,600		5,669
LargeCap Growth Fund I	2,032,258		21,799	1,248,022		14,703	39,325			484	3,240,955		36,018
LargeCap S&P 500 Index Fund	1,884,055		23,294	806,693		11,638	147,179			2,158	2,543,569		32,775
LargeCap Value Fund	1,277,016		14,875	685,590		7,853	57,485			674	1,905,121		22,054
LargeCap Value Fund III	1,204,200		16,681	539,220		7,847	250,996			3,677	1,492,424		20,869
MidCap Growth Fund III	900,786		9,887	840,525		8,174	48,652			486	1,692,659		17,575
MidCap Value Fund III	505,367		9,257	446,569		8,067	26,293			486	925,643		16,838
Origin Emerging Markets Fund	528,517		5,347	181,180		1,470	242,682			1,966	467,015		4,743
Overseas Fund	1,908,164		20,576	1,608,726		14,766	102,006			960	3,414,884		34,382
SmallCap Growth Fund I	414,773		4,856	225,812		2,427	18,721			212	621,864		7,071
SmallCap Value Fund II	392,288		4,551	226,765		2,566	18,229			212	600,824		6,903
		$	206,760	$		120,962			$	30,065		$	297,316


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		24	$			—			$			2
Core Plus Bond Fund			169				—						—
Diversified International Fund			310				—						—
Diversified Real Asset Fund			50				—						—
Global Multi-Strategy Fund			37				(59	)					83
Global Opportunities Fund			204				(60	)					131
Global Real Estate Securities Fund			334				1						219
High Yield Fund I			289				—						—
International Emerging Markets Fund			43				(49	)					—
LargeCap Growth Fund			23				(83	)					811
LargeCap Growth Fund I			17				—						3,109
LargeCap S&P 500 Index Fund			523				1						227
LargeCap Value Fund			414				—						1,101
LargeCap Value Fund III			350				18						1,129
MidCap Growth Fund III			—				—						469
MidCap Value Fund III			123				—						239
Origin Emerging Markets Fund			42				(108	)					—
Overseas Fund			376				—						382
SmallCap Growth Fund I			—				—						432
SmallCap Value Fund II			96				(2	)					447
	$		3,424	$			(341	)		$			8,781
Amounts in thousands except shares


			Schedule of Investments
			Principal LifeTime 2060 Fund
			October 31, 2016


INVESTMENT COMPANIES - 100.02%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.02%
Bond Market Index Fund ^(a)	214,431	$	2,421
Core Plus Bond Fund ^(a)	413,655		4,567
Diversified International Fund ^(a)	1,505,996		17,048
Diversified Real Asset Fund ^(a)	340,466		3,732
Global Opportunities Fund ^(a)	573,743		6,506
Global Real Estate Securities Fund ^(a)	850,771		7,589
High Yield Fund I ^(a)	330,004		3,237
International Emerging Markets Fund ^(a)	109,427		2,471
LargeCap Growth Fund ^(a)	345,532		3,417
LargeCap Growth Fund I ^(a)	1,670,718		20,099
LargeCap S&P 500 Index Fund ^(a)	1,318,503		19,817
LargeCap Value Fund ^(a)	945,576		10,836
LargeCap Value Fund III ^(a)	756,762		11,412
MidCap Growth Fund III ^(a),(b)	857,457		8,395
MidCap Value Fund III ^(a)	460,490		8,537
Origin Emerging Markets Fund ^(a)	238,692		2,122
Overseas Fund ^(a)	1,734,236		16,302
SmallCap Growth Fund I ^(a),(b)	312,063		3,473
SmallCap Value Fund II ^(a)	299,158		3,572
		$	155,553
TOTAL INVESTMENT COMPANIES		$	155,553
Total Investments		$	155,553
Other Assets and Liabilities - (0.02)%		$	(28	)
TOTAL NET ASSETS - 100.00%		$	155,525


Schedule of Investments
Principal LifeTime 2060 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	54,013	$	600	173,396	$	1,936	12,978		$	146	214,431	$	2,390
Core Plus Bond Fund	192,934		2,107	246,900		2,692	26,179			287	413,655		4,512
Diversified International Fund	867,290		10,367	741,814		8,132	103,108			1,155	1,505,996		17,343
Diversified Real Asset Fund	220,581		2,677	145,099		1,546	25,214			272	340,466		3,951
Global Multi-Strategy Fund	193,638		2,144	41,413		440	235,051			2,487	—		—
Global Opportunities Fund	608,209		7,498	270,580		3,062	305,046			3,435	573,743		7,054
Global Real Estate Securities Fund	584,010		5,270	342,439		3,102	75,678			694	850,771		7,678
High Yield Fund I	216,190		2,232	136,673		1,288	22,859			218	330,004		3,302
International Emerging Markets Fund	120,802		2,879	47,090		949	58,465			1,168	109,427		2,630
LargeCap Growth Fund	362,682		4,075	109,156		1,106	126,306			1,266	345,532		3,883
LargeCap Growth Fund I	935,183		12,109	761,854		9,003	26,319			306	1,670,718		20,806
LargeCap S&P 500 Index Fund	925,166		13,221	512,503		7,428	119,166			1,747	1,318,503		18,902
LargeCap Value Fund	593,159		7,707	420,640		4,834	68,223			787	945,576		11,753
LargeCap Value Fund III	562,623		8,588	329,581		4,819	135,442			1,987	756,762		11,418
MidCap Growth Fund III	445,509		5,022	471,631		4,597	59,683			590	857,457		9,028
MidCap Value Fund III	241,883		4,792	251,019		4,557	32,412			595	460,490		8,754
Origin Emerging Markets Fund	258,644		2,601	114,676		938	134,628			1,068	238,692		2,409
Overseas Fund	957,428		10,718	901,085		8,264	124,277			1,157	1,734,236		17,823
SmallCap Growth Fund I	194,719		2,533	139,919		1,515	22,575			251	312,063		3,797
SmallCap Value Fund II	183,147		2,459	137,479		1,567	21,468			252	299,158		3,774
		$	109,599	$		71,775			$	19,868		$	161,207


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		12	$			—			$			1
Core Plus Bond Fund			80				—						—
Diversified International Fund			158				(1	)					—
Diversified Real Asset Fund			25				—						—
Global Multi-Strategy Fund			21				(97	)					45
Global Opportunities Fund			102				(71	)					65
Global Real Estate Securities Fund			159				—						100
High Yield Fund I			151				—						—
International Emerging Markets Fund			23				(30	)					—
LargeCap Growth Fund			12				(32	)					411
LargeCap Growth Fund I			8				—						1,463
LargeCap S&P 500 Index Fund			264				—						114
LargeCap Value Fund			198				(1	)					524
LargeCap Value Fund III			168				(2	)					539
MidCap Growth Fund III			—				(1	)					237
MidCap Value Fund III			61				—						117
Origin Emerging Markets Fund			21				(62	)					—
Overseas Fund			195				(2	)					196
SmallCap Growth Fund I			—				—						208
SmallCap Value Fund II			46				—						213
	$		1,704	$			(299	)		$			4,233
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2015 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	205,271	$	2,272	199,073	$	2,224	62,520		$	704	341,824	$	3,795
Diversified International Fund	58,803		688	72,138		805	19,801			222	111,140		1,271
Diversified Real Asset Fund	36,012		406	18,993		204	27,275			295	27,730		309
Global Diversified Income Fund	42,662		582	40,863		548	12,701			170	70,824		959
Inflation Protection Fund	62,200		522	51,121		435	19,199			165	94,122		793
International Emerging Markets Fund	4,839		104	2,228		45	4,031			79	3,036		66
International Small Company Fund	13,503		132	11,100		108	4,257			41	20,346		199
LargeCap S&P 500 Index Fund	118,643		1,758	97,869		1,441	38,732			573	177,780		2,628
MidCap S&P 400 Index Fund	19,783		390	26,060		484	6,810			130	39,033		744
Origin Emerging Markets Fund	11,290		100	5,382		45	9,175			74	7,497		67
Short-Term Income Fund	47,688		581	45,633		556	14,409			176	78,912		961
SmallCap S&P 600 Index Fund	8,122		198	7,520		171	2,731			64	12,911		305
		$	7,733	$		7,066			$	2,693		$	12,097


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		43	$			3		$				3
Diversified International Fund			10				—						—
Diversified Real Asset Fund			4				(6	)					—
Global Diversified Income Fund			42				(1	)					—
Inflation Protection Fund			4				1						—
International Emerging Markets Fund			1				(4	)					—
International Small Company Fund			1				—						—
LargeCap S&P 500 Index Fund			32				2						14
MidCap S&P 400 Index Fund			5				—						23
Origin Emerging Markets Fund			1				(4	)					—
Short-Term Income Fund			15				—						—
SmallCap S&P 600 Index Fund			3				—						13
	$		161	$			(9	)	$				53
Amounts in thousands except shares

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


Schedule of Investments
Principal LifeTime Hybrid 2020 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	557,163	$	6,172	619,904	$	6,919	75,962		$	852	1,101,105	$	12,241
Diversified International Fund	216,575		2,521	288,223		3,224	31,834			356	472,964		5,388
Diversified Real Asset Fund	94,451		1,058	65,552		704	61,372			663	98,631		1,085
Global Diversified Income Fund	112,662		1,534	121,639		1,632	14,914			201	219,387		2,965
Global Real Estate Securities Fund	63,036		588	54,558		502	24,627			224	92,967		864
Inflation Protection Fund	112,381		941	104,240		886	17,777			153	198,844		1,675
International Emerging Markets Fund	17,565		376	10,198		208	14,916			293	12,847		278
International Small Company Fund	48,257		471	44,401		434	9,143			89	83,515		816
LargeCap S&P 500 Index Fund	433,817		6,429	404,229		5,952	82,341			1,202	755,705		11,184
MidCap S&P 400 Index Fund	72,272		1,423	104,978		1,948	11,072			209	166,178		3,162
Origin Emerging Markets Fund	41,231		364	24,588		204	34,067			272	31,752		282
Short-Term Income Fund	77,406		942	91,815		1,119	10,789			131	158,432		1,930
SmallCap S&P 600 Index Fund	29,130		705	30,495		694	5,369			121	54,256		1,278
		$	23,524	$		24,426			$	4,766		$	43,148


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		122	$			2		$				8
Diversified International Fund			38				(1	)					—
Diversified Real Asset Fund			10				(14	)					—
Global Diversified Income Fund			121				—						—
Global Real Estate Securities Fund			17				(2	)					11
Inflation Protection Fund			8				1						—
International Emerging Markets Fund			3				(13	)					—
International Small Company Fund			6				—						—
LargeCap S&P 500 Index Fund			119				5						52
MidCap S&P 400 Index Fund			20				—						86
Origin Emerging Markets Fund			3				(14	)					—
Short-Term Income Fund			27				—						—
SmallCap S&P 600 Index Fund			9				—						48
	$		503	$			(36	)	$				205
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2025 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	58,637	$	647	276,634	$	3,094	34,453		$	388	300,818	$	3,354
Diversified International Fund	30,171		358	148,434		1,665	18,107			202	160,498		1,821
Diversified Real Asset Fund	10,455		121	30,683		332	11,986			130	29,152		325
Global Diversified Income Fund	11,069		153	50,417		678	6,240			84	55,246		747
Global Real Estate Securities Fund	8,860		83	36,575		338	5,500			51	39,935		370
Inflation Protection Fund	10,082		85	41,505		354	5,752			49	45,835		390
International Emerging Markets Fund	2,255		49	5,203		107	3,103			61	4,355		94
International Small Company Fund	5,572		54	27,022		265	3,422			33	29,172		286
LargeCap S&P 500 Index Fund	58,149		862	234,042		3,454	35,366			523	256,825		3,793
MidCap S&P 400 Index Fund	9,609		193	52,656		985	6,282			119	55,983		1,059
Origin Emerging Markets Fund	5,468		49	12,783		107	7,501			60	10,750		95
SmallCap S&P 600 Index Fund	3,863		96	16,927		387	2,389			58	18,401		425
		$	2,750	$		11,766			$	1,758		$	12,759


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		14	$			1		$				1
Diversified International Fund			6				—						—
Diversified Real Asset Fund			1				2						—
Global Diversified Income Fund			22				—						—
Global Real Estate Securities Fund			4				—						2
Inflation Protection Fund			1				—						—
International Emerging Markets Fund			—				(1	)					—
International Small Company Fund			1				—						—
LargeCap S&P 500 Index Fund			17				—						7
MidCap S&P 400 Index Fund			3				—						12
Origin Emerging Markets Fund			—				(1	)					—
SmallCap S&P 600 Index Fund			—				—						7
	$		69	$			1		$				29
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2030 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	452,654	$	5,016	440,718	$	4,933	43,457		$	481	849,915	$	9,468
Diversified International Fund	289,623		3,361	379,371		4,251	30,995			338	637,999		7,271
Diversified Real Asset Fund	94,753		1,057	60,771		656	52,033			559	103,491		1,142
Global Diversified Income Fund	74,253		1,009	86,775		1,168	7,541			99	153,487		2,078
Global Real Estate Securities Fund	94,649		882	85,458		796	14,450			130	165,657		1,547
Inflation Protection Fund	69,196		579	59,961		511	8,979			75	120,178		1,015
International Emerging Markets Fund	23,535		503	12,054		248	17,722			346	17,867		387
International Small Company Fund	66,091		649	56,737		556	9,763			93	113,065		1,111
LargeCap S&P 500 Index Fund	589,240		8,724	515,019		7,629	85,326			1,213	1,018,933		15,138
MidCap S&P 400 Index Fund	98,933		1,939	135,782		2,534	11,104			199	223,611		4,272
Origin Emerging Markets Fund	55,583		491	29,291		245	40,712			324	44,162		392
SmallCap S&P 600 Index Fund	40,149		970	39,358		901	5,786			126	73,721		1,744
		$	25,180	$		24,428			$	3,983		$	45,565


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		96	$			—		$				6
Diversified International Fund			49				(3	)					—
Diversified Real Asset Fund			10				(12	)					—
Global Diversified Income Fund			78				—						—
Global Real Estate Securities Fund			26				(1	)					15
Inflation Protection Fund			5				—						—
International Emerging Markets Fund			4				(18	)					—
International Small Company Fund			8				(1	)					—
LargeCap S&P 500 Index Fund			158				(2	)					69
MidCap S&P 400 Index Fund			27				(2	)					116
Origin Emerging Markets Fund			4				(20	)					—
SmallCap S&P 600 Index Fund			14				(1	)					64
	$		479	$			(60	)	$				270
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2035 Fund
October 31, 2016


	October 31,		October 31,								October 31,	October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	47,721	$	526	126,043	$	1,412	18,466		$	208	155,298	$	1,730
Diversified International Fund	42,027		499	122,510		1,378	17,144			194	147,393		1,683
Diversified Real Asset Fund	11,297		130	20,304		220	9,223			100	22,378		252
Global Real Estate Securities Fund	14,083		131	33,127		308	6,052			57	41,158		382
High Yield Fund I	6,706		66	16,686		160	2,658			26	20,734		200
Inflation Protection Fund	5,798		49	13,492		115	2,293			20	16,997		144
International Emerging Markets Fund	3,184		70	4,969		104	2,930			59	5,223		115
International Small Company Fund	8,436		83	21,189		208	3,190			31	26,435		260
LargeCap S&P 500 Index Fund	83,161		1,230	191,199		2,840	34,217			511	240,143		3,559
MidCap S&P 400 Index Fund	13,634		272	44,926		845	6,021			115	52,539		1,002
Origin Emerging Markets Fund	7,715		70	11,907		101	7,291			59	12,331		111
SmallCap S&P 600 Index Fund	5,528		137	13,963		323	2,185			54	17,306		406
		$	3,263	$		8,014			$	1,434		$	9,844


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		11	$			—		$				1
Diversified International Fund			7				—						—
Diversified Real Asset Fund			1				2						—
Global Real Estate Securities Fund			5				—						2
High Yield Fund I			7				—						—
Inflation Protection Fund			—				—						—
International Emerging Markets Fund			1				—						—
International Small Company Fund			1				—						—
LargeCap S&P 500 Index Fund			23				—						10
MidCap S&P 400 Index Fund			4				—						17
Origin Emerging Markets Fund			1				(1	)					—
SmallCap S&P 600 Index Fund			1				—						9
	$		62	$			1		$				39
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2040 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	150,136	$	1,664	141,601	$	1,588	16,407		$	183	275,330	$	3,069
Diversified International Fund	181,395		2,106	217,496		2,446	21,644			243	377,247		4,309
Diversified Real Asset Fund	42,498		474	28,904		314	17,776			192	53,626		592
Global Real Estate Securities Fund	65,408		610	56,046		525	10,363			95	111,091		1,040
High Yield Fund I	28,033		272	25,487		244	3,622			35	49,898		481
Inflation Protection Fund	16,196		136	13,246		113	2,340			20	27,102		229
International Emerging Markets Fund	14,576		311	7,864		165	9,176			180	13,264		288
International Small Company Fund	40,326		394	33,044		325	6,313			62	67,057		657
LargeCap S&P 500 Index Fund	368,025		5,451	303,715		4,526	56,791			829	614,949		9,150
MidCap S&P 400 Index Fund	61,759		1,213	80,664		1,515	7,699			146	134,724		2,582
Origin Emerging Markets Fund	35,319		311	19,380		165	21,903			175	32,796		292
SmallCap S&P 600 Index Fund	24,940		603	23,142		535	3,678			83	44,404		1,055
		$	13,545	$		12,461			$	2,243		$	23,744


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		32	$			—		$				2
Diversified International Fund			31				—						—
Diversified Real Asset Fund			4				(4	)					—
Global Real Estate Securities Fund			18				—						11
High Yield Fund I			20				—						—
Inflation Protection Fund			1				—						—
International Emerging Markets Fund			3				(8	)					—
International Small Company Fund			5				—						—
LargeCap S&P 500 Index Fund			99				2						44
MidCap S&P 400 Index Fund			17				—						73
Origin Emerging Markets Fund			3				(9	)					—
SmallCap S&P 600 Index Fund			8				—						40
	$		241	$			(19	)	$				170
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2045 Fund
October 31, 2016


	October 31,		October 31,								October 31,	October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	16,126	$	178	40,864	$	460	2,164		$	24	54,826	$	614
Diversified International Fund	27,271		325	80,649		912	3,969			46	103,951		1,191
Diversified Real Asset Fund	5,859		68	11,147		122	2,869			32	14,137		159
Global Real Estate Securities Fund	10,380		97	24,200		228	2,077			19	32,503		306
High Yield Fund I	3,983		39	9,803		94	671			6	13,115		127
International Emerging Markets Fund	2,119		46	3,021		64	1,571			30	3,569		79
International Small Company Fund	4,870		47	14,511		143	758			7	18,623		183
LargeCap S&P 500 Index Fund	54,998		815	124,947		1,874	10,542			155	169,403		2,534
MidCap S&P 400 Index Fund	9,040		182	29,383		560	1,405			28	37,018		714
Origin Emerging Markets Fund	5,141		46	7,452		64	3,765			29	8,828		80
SmallCap S&P 600 Index Fund	3,657		90	9,071		212	626			16	12,102		286
		$	1,933	$		4,733			$	392		$	6,273


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		4	$			—		$				—
Diversified International Fund			5				—						—
Diversified Real Asset Fund			1				1						—
Global Real Estate Securities Fund			4				—						2
High Yield Fund I			4				—						—
International Emerging Markets Fund			—				(1	)					—
International Small Company Fund			1				—						—
LargeCap S&P 500 Index Fund			16				—						7
MidCap S&P 400 Index Fund			3				—						12
Origin Emerging Markets Fund			—				(1	)					—
SmallCap S&P 600 Index Fund			1				—						5
	$		39	$			(1	)	$				26
Amounts in thousands except shares


Schedule of Investments
Principal LifeTime Hybrid 2050 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	44,407	$	492	36,889	$	414	4,207		$	47	77,089	$	859
Diversified International Fund	109,978		1,276	118,490		1,325	11,545			128	216,923		2,473
Diversified Real Asset Fund	20,361		227	13,469		146	5,493			59	28,337		313
Global Real Estate Securities Fund	40,634		379	31,265		290	5,011			46	66,888		623
High Yield Fund I	15,665		152	12,563		120	1,833			18	26,395		254
International Emerging Markets Fund	8,855		189	4,215		88	5,411			106	7,659		166
International Small Company Fund	24,607		241	17,723		173	3,690			36	38,640		378
LargeCap S&P 500 Index Fund	224,278		3,319	162,567		2,405	32,962			477	353,883		5,247
MidCap S&P 400 Index Fund	37,647		738	44,211		824	4,144			77	77,714		1,485
Origin Emerging Markets Fund	21,455		189	10,396		88	12,924			104	18,927		168
SmallCap S&P 600 Index Fund	15,205		368	12,485		286	2,238			50	25,452		604
		$	7,570	$		6,159			$	1,148		$	12,570


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		9	$			—		$				—
Diversified International Fund			19				—						—
Diversified Real Asset Fund			2				(1	)					—
Global Real Estate Securities Fund			11				—						7
High Yield Fund I			11				—						—
International Emerging Markets Fund			2				(5	)					—
International Small Company Fund			3				—						—
LargeCap S&P 500 Index Fund			61				—						27
MidCap S&P 400 Index Fund			10				—						45
Origin Emerging Markets Fund			2				(5	)					—
SmallCap S&P 600 Index Fund			5				—						24
	$		135	$			(11	)	$				103
Amounts in thousands except shares

Schedule of Investments
Principal LifeTime Hybrid 2055 Fund
October 31, 2016


Schedule of Investments
Principal LifeTime Hybrid 2055 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	1,496	$	16,525	7,436	$	83,802	645		$	7,257	8,287	$	93,070
Diversified International Fund	5,267		62,595	31,299		352,345	2,529			28,926	34,037		385,906
Diversified Real Asset Fund	793		9,176	3,907		42,681	345			3,786	4,355		48,055
Global Real Estate Securities Fund	1,974		18,339	9,169		85,992	910			8,544	10,233		95,786
High Yield Fund I	755		7,435	3,632		34,935	349			3,358	4,038		38,997
International Emerging Markets Fund	435		9,542	1,186		25,152	436			8,735	1,185		25,936
International Small Company Fund	1,148		11,122	5,453		53,417	556			5,500	6,045		59,053
LargeCap S&P 500 Index Fund	11,203		165,498	49,558		740,979	5,399			80,616	55,362		825,844
MidCap S&P 400 Index Fund	1,922		38,540	11,076		210,652	904			17,560	12,094		231,617
Origin Emerging Markets Fund	1,033		9,368	2,919		25,034	1,018			8,318	2,934		26,084
SmallCap S&P 600 Index Fund	748		18,369	3,575		83,394	356			8,424	3,967		93,339
	$		366,509		$	1,738,383			$	181,024		$	1,923,687


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		343	$			—			$			22
Diversified International Fund			972				(108	)					—
Diversified Real Asset Fund			90				(16	)					—
Global Real Estate Securities Fund			863				(1	)					342
High Yield Fund I			1,021				(15	)					—
International Emerging Markets Fund			86				(23	)					—
International Small Company Fund			152				14						—
LargeCap S&P 500 Index Fund			3,233				(17	)					1,394
MidCap S&P 400 Index Fund			560				(15	)					2,392
Origin Emerging Markets Fund			84				—						—
SmallCap S&P 600 Index Fund			276				—						1,259
	$		7,680	$			(181	)		$			5,409

Amounts shown are in dollars and not rounded to the thousands.

Schedule of Investments
Principal LifeTime Hybrid 2060 Fund
October 31, 2016


Schedule of Investments
Principal LifeTime Hybrid 2060 Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	566	$	6,279	1,478	$	16,436	245		$	2,768	1,799	$	19,947
Diversified International Fund	2,038		23,460	7,130		78,857	960			10,966	8,208		91,351
Diversified Real Asset Fund	313		3,494	855		9,092	131			1,433	1,037		11,153
Global Real Estate Securities Fund	752		6,926	2,031		18,550	329			3,097	2,454		22,380
High Yield Fund I	289		2,805	808		7,607	128			1,247	969		9,166
International Emerging Markets Fund	170		3,618	298		6,040	174			3,470	294		6,158
International Small Company Fund	474		4,627	1,208		11,591	242			2,381	1,440		13,840
LargeCap S&P 500 Index Fund	4,291		62,747	11,049		160,567	1,942			29,189	13,398		194,178
MidCap S&P 400 Index Fund	752		14,639	2,530		46,250	340			6,604	2,942		54,283
Origin Emerging Markets Fund	403		3,556	728		5,989	405			3,300	726		6,225
SmallCap S&P 600 Index Fund	291		6,985	815		18,171	139			3,244	967		21,918
	$		139,136	$		379,150			$	67,699		$	450,599


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		125	$			—			$			8
Diversified International Fund			368				—						—
Diversified Real Asset Fund			35				—						—
Global Real Estate Securities Fund			308				1						127
High Yield Fund I			361				1						—
International Emerging Markets Fund			33				(30	)					—
International Small Company Fund			61				3						—
LargeCap S&P 500 Index Fund			1,198				53						522
MidCap S&P 400 Index Fund			212				(2	)					915
Origin Emerging Markets Fund			32				(20	)					—
SmallCap S&P 600 Index Fund			104				6						479
	$		2,837	$			12			$			2,051

Amounts shown are in dollars and not rounded to the thousands.

Schedule of Investments
Principal LifeTime Hybrid Income Fund
October 31, 2016

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


Schedule of Investments
Principal LifeTime Hybrid Income Fund
October 31, 2016


	October 31,		October 31,								October 31,	October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Bond Market Index Fund	97,630	$	1,082	260,596	$	2,943	36,903		$	414	321,323	$	3,611
Diversified International Fund	10,002		116	34,976		396	4,493			51	40,485		461
Diversified Real Asset Fund	7,570		84	1,955		20	9,525			102	—		—
Global Diversified Income Fund	19,738		268	49,729		677	7,117			96	62,350		849
Inflation Protection Fund	40,402		338	96,078		828	14,764			127	121,716		1,039
International Emerging Markets Fund	792		17	210		4	1,002			20	—		—
International Small Company Fund	2,236		22	5,705		56	822			8	7,119		70
LargeCap S&P 500 Index Fund	20,059		297	46,669		705	7,582			112	59,146		890
MidCap S&P 400 Index Fund	3,375		66	10,968		210	1,463			27	12,880		249
Origin Emerging Markets Fund	1,917		17	512		4	2,429			19	—		—
Short-Term Income Fund	39,354		479	97,030		1,186	14,052			171	122,332		1,494
SmallCap S&P 600 Index Fund	1,283		31	3,346		79	480			11	4,149		99
		$	2,817	$		7,108			$	1,158		$	8,762


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Bond Market Index Fund	$		21	$			—		$				1
Diversified International Fund			2				—						—
Diversified Real Asset Fund			1				(2	)					—
Global Diversified Income Fund			24				—						—
Inflation Protection Fund			3				—						—
International Emerging Markets Fund			—				(1	)					—
International Small Company Fund			—				—						—
LargeCap S&P 500 Index Fund			5				—						3
MidCap S&P 400 Index Fund			1				—						4
Origin Emerging Markets Fund			—				(2	)					—
Short-Term Income Fund			14				—						—
SmallCap S&P 600 Index Fund			1				—						2
	$		72	$			(5	)	$				10
Amounts in thousands except shares

Schedule of Investments
Principal LifeTime Strategic Income Fund
October 31, 2016


INVESTMENT COMPANIES - 100.01%		Shares Held	Value (000's)
Principal Funds, Inc. Institutional Class - 100.01%
Blue Chip Fund ^(a)		731,780	$	12,367
Bond Market Index Fund ^(a)		6,487,945		73,249
Core Plus Bond Fund ^(a)		14,981,433		165,395
Diversified International Fund ^(a)		1,677,905		18,994
Equity Income Fund ^(a)		843,095		22,527
Global Diversified Income Fund ^(a)		4,890,214		66,800
Global Multi-Strategy Fund ^(a)		4,174,738		45,129
Global Opportunities Fund ^(a)		1,119,074		12,690
Inflation Protection Fund ^(a)		9,216,973		80,372
LargeCap Growth Fund I ^(a)		945,817		11,378
LargeCap S&P 500 Index Fund ^(a)		1,250,090		18,789
MidCap Fund ^(a)		759,053		16,859
Overseas Fund ^(a)		1,945,623		18,289
Short-Term Income Fund ^(a)		9,473,152		115,762
SmallCap Growth Fund I ^(a),(b)		353,560		3,935
SmallCap Value Fund II ^(a)		363,652		4,342
			$	686,877
TOTAL INVESTMENT COMPANIES			$	686,877
Total Investments			$	686,877
Other Assets and Liabilities - (0.01)%			$	(85	)
TOTAL NET ASSETS - 100.00%			$	686,792


(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional
	information.
(b)	Non-Income Producing Security



Portfolio Summary (unaudited)

Fund Type				Percent
Fixed Income Funds				63.30	%
Specialty Funds				16.30	%
Domestic Equity Funds				13.13	%
International Equity Funds				7.28	%
Other Assets and Liabilities				(0.01	)%
TOTAL NET ASSETS				100.00	%


Schedule of Investments
Principal LifeTime Strategic Income Fund
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	707,807	$	11,163	140,691	$	2,153	116,718		$	1,871	731,780	$	11,465
Bond Market Index Fund	6,094,487		67,951	1,764,441		19,525	1,370,983			15,266	6,487,945		72,205
Core Plus Bond Fund	17,567,841		191,117	1,540,820		16,822	4,127,228			44,697	14,981,433		163,248
Diversified International Fund	1,293,787		16,118	640,399		6,902	256,281			2,855	1,677,905		20,262
Diversified Real Asset Fund	1,828,644		18,939	55,371		565	1,884,015			19,713	—		—
Equity Income Fund	1,051,542		19,830	91,302		2,363	299,749			7,743	843,095		15,904
Global Diversified Income Fund	5,024,571		59,147	670,686		8,924	805,043			10,728	4,890,214		57,365
Global Multi-Strategy Fund	2,649,468		27,817	2,142,490		22,705	617,220			6,619	4,174,738		43,925
Global Opportunities Fund	566,428		6,126	712,530		8,108	159,884			1,829	1,119,074		12,412
Inflation Protection Fund	9,964,504		86,021	850,441		7,215	1,597,972			13,551	9,216,973		79,715
International Emerging Markets Fund	177,231		4,273	5,588		107	182,819			3,528	—		—
LargeCap Growth Fund I	989,595		7,293	197,904		2,347	241,682			2,870	945,817		6,950
LargeCap S&P 500 Index Fund	1,144,458		10,962	392,386		5,442	286,754			4,177	1,250,090		12,489
MidCap Fund	728,911		10,674	154,726		3,270	124,584			2,694	759,053		11,389
Origin Emerging Markets Fund	319,226		3,217	11,955		93	331,181			2,604	—		—
Overseas Fund	1,493,099		13,814	761,761		6,848	309,237			2,877	1,945,623		17,786
Short-Term Income Fund	10,093,644		121,537	956,409		11,650	1,576,901			19,198	9,473,152		113,985
SmallCap Growth Fund I	436,335		3,827	65,544		713	148,319			1,586	353,560		2,863
SmallCap Value Fund II	427,404		3,481	75,199		842	138,951			1,586	363,652		2,812
		$	683,307	$		126,594			$	165,992		$	644,775


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		54	$			20			$			207
Bond Market Index Fund			1,274				(5	)					82
Core Plus Bond Fund			4,164				6						—
Diversified International Fund			215				97						—
Diversified Real Asset Fund			186				209						—
Equity Income Fund			579				1,454						—
Global Diversified Income Fund			3,740				22						—
Global Multi-Strategy Fund			257				22						580
Global Opportunities Fund			87				7						56
Inflation Protection Fund			667				30						—
International Emerging Markets Fund			31				(852	)					—
LargeCap Growth Fund I			8				180						1,447
LargeCap S&P 500 Index Fund			300				262						131
MidCap Fund			20				139						924
Origin Emerging Markets Fund			23				(706	)					—
Overseas Fund			275				1						283
Short-Term Income Fund			2,373				(4	)					—
SmallCap Growth Fund I			—				(91	)					434
SmallCap Value Fund II			100				75						463
	$		14,353	$			866			$			4,607
Amounts in thousands except shares


Schedule of Investments
Real Estate Securities Fund
October 31, 2016



COMMON STOCKS - 97.80%	Shares Held		Value(000	's)	Portfolio Summary (unaudited)
Lodging - 0.96%					Sector	Percent
Hilton Worldwide Holdings Inc	1,231,316	$	27,828		Financial	95.47	%
					Investment Companies	1.54	%
Real Estate - 0.69%					Technology	1.37	%
CBRE Group Inc ^(a)	782,460		20,156		Consumer, Cyclical	0.96	%
					Other Assets and Liabilities	0.66	%
REITS - 94.78%					TOTAL NET ASSETS	100.00	%
Alexandria Real Estate Equities Inc	663,125		71,492
American Campus Communities Inc	797,708		41,569
American Tower Corp	422,975		49,568
Apartment Investment & Management Co	1,968,267		86,742
AvalonBay Communities Inc	821,100		140,556
Boston Properties Inc	943,759		113,704
Brandywine Realty Trust	205,177		3,180
Colony Starwood Homes	1,095,650		31,785
Crown Castle International Corp	675,770		61,488
CubeSmart	1,643,430		42,844
DDR Corp	282,458		4,319
Duke Realty Corp	3,607,050		94,324
Education Realty Trust Inc	878,170		37,401
EPR Properties	734,509		53,413
Equinix Inc	461,305		164,815
Equity LifeStyle Properties Inc	30,453		2,310
Equity One Inc	1,902,009		54,207
Equity Residential	727,100		44,898
Essex Property Trust Inc	648,645		138,868
Extra Space Storage Inc	834,276		61,027
Federal Realty Investment Trust	185,798		26,983
First Industrial Realty Trust Inc	960,371		25,363
General Growth Properties Inc	3,283,148		81,915
Kilroy Realty Corp	495,408		35,585
Pebblebrook Hotel Trust	621,072		15,080
Physicians Realty Trust	2,599,472		51,392
Prologis Inc	2,866,732		149,529
Public Storage	377,017		80,576
Regency Centers Corp	521,260		37,567
Saul Centers Inc	369,833		22,368
Senior Housing Properties Trust	2,801,192		59,581
Simon Property Group Inc	1,610,960		299,574
SL Green Realty Corp	917,994		90,165
Spirit Realty Capital Inc	5,381,602		64,095
STAG Industrial Inc	933,387		21,533
STORE Capital Corp	2,707,114		73,877
Sun Communities Inc	751,703		57,829
Sunstone Hotel Investors Inc	3,614,966		45,404
Tanger Factory Outlet Centers Inc	557,694		19,408
Terreno Realty Corp	474,440		12,383
Ventas Inc	211,159		14,306
Vornado Realty Trust	367,532		34,100
Welltower Inc	2,056,104		140,905
		$	2,758,028
Software - 1.37%
InterXion Holding NV ^(a)	1,074,357		39,998

TOTAL COMMON STOCKS		$	2,846,010
INVESTMENT COMPANIES - 1.54%	Shares Held		Value(000	's)
Money Market Funds - 1.54%
BlackRock Liquidity Funds FedFund Portfolio	44,800,741		44,802

TOTAL INVESTMENT COMPANIES		$	44,802
Total Investments		$	2,890,812
Other Assets and Liabilities - 0.66%		$	19,277
TOTAL NET ASSETS - 100.00%		$	2,910,089


(a) Non-Income Producing Security


			Schedule of Investments
			SAM Balanced Portfolio
			October 31, 2016


INVESTMENT COMPANIES - 100.10%	Shares Held		Value(000	's)
Money Market Funds - 0.02%
Cash Account Trust - Government & Agency	1,123,037	$	1,123
Portfolio - Government Cash Managed

Principal Exchange-Traded Funds - 2.28%
Principal EDGE Active Income ETF ^(a)	1,230,600		49,310
Principal US Small Cap Index ETF ^(a),(b)	2,455,700		59,207
		$	108,517
Principal Funds, Inc. Institutional Class - 97.80%
Blue Chip Fund ^(a)	13,504,287		228,222
Diversified International Fund ^(a)	47,054,194		532,654
EDGE MidCap Fund ^(a)	8,337,056		97,460
Equity Income Fund ^(a)	19,361,151		517,330
Global Diversified Income Fund ^(a)	7,065,425		96,514
Global Multi-Strategy Fund ^(a)	32,833,589		354,931
Global Real Estate Securities Fund ^(a)	13,241,378		118,113
Government & High Quality Bond Fund ^(a)	22,796,021		247,337
High Yield Fund ^(a)	14,005,887		100,702
Income Fund ^(a)	62,879,624		607,417
Inflation Protection Fund ^(a)	9,818,632		85,618
International Emerging Markets Fund ^(a)	5,357,126		120,964
International Small Company Fund ^(a)	5,297,404		52,444
LargeCap Growth Fund ^(a)	26,220,036		259,316
LargeCap Value Fund ^(a)	26,263,239		300,977
MidCap Fund ^(a)	10,266,358		228,016
Preferred Securities Fund ^(a)	9,546,781		97,664
Principal Capital Appreciation Fund ^(a)	2,816,798		164,050
Real Estate Debt Income Fund ^(a)	4,979,030		48,396
Short-Term Income Fund ^(a)	15,382,819		187,978
Small-MidCap Dividend Income Fund ^(a)	14,142,936		208,043
		$	4,654,146
TOTAL INVESTMENT COMPANIES		$	4,763,786
Total Investments		$	4,763,786
Other Assets and Liabilities - (0.10)%		$	(4,588	)
TOTAL NET ASSETS - 100.00%		$	4,759,198


Schedule of Investments
SAM Balanced Portfolio
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	14,009,512	$	195,994	475,112	$	7,368	980,337		$	15,974	13,504,287	$	187,923
Diversified International Fund	36,812,849		371,867	11,559,480		130,768	1,318,135			14,971	47,054,194		486,579
EDGE MidCap Fund	6,304,643		63,066	2,265,986		25,760	233,573			2,814	8,337,056		86,057
Equity Income Fund	20,151,026		300,512	662,789		17,081	1,452,664			37,948	19,361,151		286,631
Global Diversified Income Fund	7,163,129		97,283	475,272		6,303	572,976			7,602	7,065,425		95,496
Global Multi-Strategy Fund	33,503,805		358,983	1,264,697		13,506	1,934,913			20,596	32,833,589		350,838
Global Real Estate Securities Fund	10,803,107		94,563	3,296,987		30,087	858,716			7,976	13,241,378		116,377
Government & High Quality Bond	33,048,958		348,336	1,295,675		14,132	11,548,612			126,136	22,796,021		238,987
Fund
High Yield Fund	16,952,486		121,471	1,241,010		8,526	4,187,609			29,152	14,005,887		98,597
Income Fund	72,978,319		677,247	3,002,020		28,529	13,100,715			124,969	62,879,624		577,979
Inflation Protection Fund	10,237,466		87,583	211,566		1,766	630,400			5,336	9,818,632		83,919
International Emerging Markets Fund	4,083,751		87,721	1,607,100		31,473	333,725			7,431	5,357,126		111,273
International Small Company Fund	—		—	5,330,329		52,442	32,925			327	5,297,404		52,110
LargeCap Growth Fund	39,587,854		291,474	4,769,600		48,874	18,137,418			177,168	26,220,036		152,183
LargeCap Value Fund	22,475,681		245,132	5,465,081		62,051	1,677,523			19,552	26,263,239		285,792
MidCap Fund	13,257,768		214,378	935,671		19,495	3,927,081			87,135	10,266,358		145,777
MidCap Value Fund I	6,350,977		93,353	758,834		9,442	7,109,811			91,817	—		—
Preferred Securities Fund	2,010,544		12,806	7,674,455		77,740	138,218			1,388	9,546,781		89,127
Principal Capital Appreciation Fund	2,776,322		76,624	199,279		11,321	158,803			9,223	2,816,798		78,814
Principal EDGE Active Income ETF	—		—	1,230,600		47,668	—			—	1,230,600		47,668
Principal US Small Cap Index ETF	—		—	2,455,700		61,045	—			—	2,455,700		61,045
Real Estate Debt Income Fund	—		—	4,990,213		48,210	11,183			109	4,979,030		48,099
Short-Term Income Fund	17,735,949		212,984	448,752		5,465	2,801,882			34,116	15,382,819		184,163
SmallCap Growth Fund I	346,424		3,508	31,835		349	378,259			4,062	—		—
SmallCap Value Fund II	2,628,505		26,299	315,777		3,511	2,944,282			33,849	—		—
Small-MidCap Dividend Income Fund	10,912,791		122,666	3,821,590		52,853	591,445			8,614	14,142,936		167,095
		$	4,103,850	$		815,765			$	868,265		$	4,032,529


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		1,076	$			535			$			4,149
Diversified International Fund			6,249				(1,085	)					—
EDGE MidCap Fund			258				45						—
Equity Income Fund			12,383				6,986						—
Global Diversified Income Fund			5,401				(488	)					—
Global Multi-Strategy Fund			3,303				(1,055	)					7,448
Global Real Estate Securities Fund			2,652				(297	)					1,729
Government & High Quality Bond Fund			11,835				2,655						—
High Yield Fund			7,187				(2,248	)					—
Income Fund			24,199				(2,828	)					—
Inflation Protection Fund			700				(94	)					—
International Emerging Markets Fund			744				(490	)					—
International Small Company Fund			—				(5	)					—
LargeCap Growth Fund			1,215				(10,997	)					42,399
LargeCap Value Fund			6,966				(1,839	)					18,640
MidCap Fund			373				(961	)					17,139
MidCap Value Fund I			2,737				(10,978	)					6,168
Preferred Securities Fund			2,475				(31	)					177
Principal Capital Appreciation Fund			2,522				92						6,540
Principal EDGE Active Income ETF			733				—						—
Principal US Small Cap Index ETF			—				—						—
Real Estate Debt Income Fund			694				(2	)					—
Short-Term Income Fund			4,044				(170	)					—
SmallCap Growth Fund I			—				205						349
SmallCap Value Fund II			623				4,039						2,888
Small-MidCap Dividend Income Fund			4,123				190						2,802
	$		102,492	$			(18,821	)		$			110,428
Amounts in thousands except shares


				Schedule of Investments
			SAM Conservative Balanced Portfolio
				October 31, 2016


INVESTMENT COMPANIES - 100.07%		Shares Held	Value (000's)
Money Market Funds - 0.03%
Cash Account Trust - Government & Agency		612,445	$	612
Portfolio - Government Cash Managed

Principal Exchange-Traded Funds - 3.39%
Principal EDGE Active Income ETF ^(a)		1,041,000		41,713
Principal US Small Cap Index ETF ^(a),(b)		712,200		17,171
			$	58,884
Principal Funds, Inc. Institutional Class - 96.65%
Blue Chip Fund ^(a)		2,145,311		36,256
Diversified International Fund ^(a)		12,101,961		136,994
EDGE MidCap Fund ^(a)		2,596,534		30,353
Equity Income Fund ^(a)		4,509,929		120,505
Global Diversified Income Fund ^(a)		4,245,951		58,000
Global Multi-Strategy Fund ^(a)		8,249,177		89,174
Global Real Estate Securities Fund ^(a)		3,678,817		32,815
Government & High Quality Bond Fund ^(a)		16,328,784		177,167
High Yield Fund ^(a)		12,299,566		88,434
Income Fund ^(a)		36,723,489		354,749
Inflation Protection Fund ^(a)		4,870,252		42,469
International Emerging Markets Fund ^(a)		1,345,238		30,375
International Small Company Fund ^(a)		1,254,854		12,423
LargeCap Growth Fund ^(a)		7,801,802		77,160
LargeCap Value Fund ^(a)		8,332,554		95,491
MidCap Fund ^(a)		1,704,894		37,866
Preferred Securities Fund ^(a)		2,491,870		25,492
Principal Capital Appreciation Fund ^(a)		768,454		44,755
Real Estate Debt Income Fund ^(a)		1,771,834		17,222
Short-Term Income Fund ^(a)		9,507,659		116,184
Small-MidCap Dividend Income Fund ^(a)		3,665,224		53,915
			$	1,677,799
TOTAL INVESTMENT COMPANIES			$	1,737,295
Total Investments			$	1,737,295
Other Assets and Liabilities - (0.07)%			$	(1,300	)
TOTAL NET ASSETS - 100.00%			$	1,735,995


(a)	Affiliated Security. Please see Affiliated Sub-Schedule for transactional
	information.
(b)	Non-Income Producing Security



	Portfolio Summary (unaudited)
Fund Type				Percent
Fixed Income Funds				49.73	%
Domestic Equity Funds				29.58	%
International Equity Funds				12.25	%
Specialty Funds				8.48	%
Investment Companies				0.03	%
Other Assets and Liabilities				(0.07	)%
TOTAL NET ASSETS				100.00	%


Schedule of Investments
SAM Conservative Balanced Portfolio
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	2,942,144	$	40,516	225,942	$	3,417	1,022,775		$	16,346	2,145,311	$	27,871
Core Plus Bond Fund	2,969,703		32,558	89,892		968	3,059,595			33,537	—		—
Diversified International Fund	8,606,876		86,541	3,823,619		42,673	328,534			3,755	12,101,961		125,213
EDGE MidCap Fund	1,477,312		14,789	1,124,920		12,584	5,698			68	2,596,534		27,303
Equity Income Fund	4,329,157		66,382	406,346		10,128	225,574			5,903	4,509,929		70,634
Global Diversified Income Fund	4,050,773		55,561	580,538		7,604	385,360			5,158	4,245,951		57,593
Global Multi-Strategy Fund	8,032,405		86,140	550,937		5,894	334,165			3,569	8,249,177		88,296
Global Real Estate Securities Fund	2,581,450		21,873	1,340,341		12,293	242,974			2,288	3,678,817		31,864
Government & High Quality Bond	19,080,448		204,882	1,462,902		15,956	4,214,566			46,000	16,328,784		174,674
Fund
High Yield Fund	11,468,536		84,090	1,661,213		11,320	830,183			5,766	12,299,566		88,943
Income Fund	37,589,713		353,891	2,763,435		26,191	3,629,659			34,570	36,723,489		344,495
Inflation Protection Fund	4,981,570		42,694	230,808		1,945	342,126			2,892	4,870,252		41,689
International Emerging Markets Fund	974,768		20,064	417,177		8,203	46,707			1,044	1,345,238		27,158
International Small Company Fund	—		—	1,254,854		12,347	—			—	1,254,854		12,347
LargeCap Growth Fund	9,946,846		81,996	1,753,079		17,645	3,898,123			38,175	7,801,802		56,649
LargeCap Value Fund	5,356,033		57,017	3,349,148		38,343	372,627			4,378	8,332,554		90,652
MidCap Fund	2,735,873		45,772	224,821		4,734	1,255,800			27,571	1,704,894		22,522
MidCap Value Fund I	2,190,714		32,890	302,368		3,797	2,493,082			32,179	—		—
Preferred Securities Fund	829,375		5,404	1,754,492		17,741	91,997			937	2,491,870		22,205
Principal Capital Appreciation Fund	721,736		21,250	86,994		4,874	40,276			2,336	768,454		23,919
Principal EDGE Active Income ETF	—		—	1,041,000		40,318	—			—	1,041,000		40,318
Principal US Small Cap Index ETF	—		—	712,200		17,695	—			—	712,200		17,695
Real Estate Debt Income Fund	—		—	1,803,814		17,428	31,980			315	1,771,834		17,113
Short-Term Income Fund	10,364,304		124,461	659,808		8,027	1,516,453			18,477	9,507,659		113,903
SmallCap Growth Fund I	138,848		1,408	12,760		140	151,608			1,616	—		—
SmallCap Value Fund II	516,553		5,141	62,056		689	578,609			6,659	—		—
Small-MidCap Dividend Income Fund	2,523,492		28,444	1,243,136		17,029	101,404			1,486	3,665,224		44,020
		$	1,513,764	$		359,983			$	295,025		$	1,567,076


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		228	$			284			$			876
Core Plus Bond Fund			485				11						—
Diversified International Fund			1,472				(246	)					—
EDGE MidCap Fund			61				(2	)					—
Equity Income Fund			2,802				27						—
Global Diversified Income Fund			3,215				(414	)					—
Global Multi-Strategy Fund			798				(169	)					1,800
Global Real Estate Securities Fund			676				(14	)					415
Government & High Quality Bond Fund			7,475				(164	)					—
High Yield Fund			5,436				(701	)					—
Income Fund			13,177				(1,017	)					—
Inflation Protection Fund			341				(58	)					—
International Emerging Markets Fund			179				(65	)					—
International Small Company Fund			—				—						—
LargeCap Growth Fund			307				(4,817	)					10,698
LargeCap Value Fund			1,658				(330	)					4,430
MidCap Fund			78				(413	)					3,563
MidCap Value Fund I			952				(4,508	)					2,145
Preferred Securities Fund			762				(3	)					73
Principal Capital Appreciation Fund			649				131						1,682
Principal EDGE Active Income ETF			620				—						—
Principal US Small Cap Index ETF			—				—						—
Real Estate Debt Income Fund			248				—						—
Short-Term Income Fund			2,441				(108	)					—
SmallCap Growth Fund I			—				68						140
SmallCap Value Fund II			122				829						568
Small-MidCap Dividend Income Fund			1,009				33						651
	$		45,191	$			(11,646	)		$			27,041
Amounts in thousands except shares


			Schedule of Investments
			SAM Conservative Growth Portfolio
			October 31, 2016


INVESTMENT COMPANIES - 100.08%	Shares Held		Value(000	's)
Money Market Funds - 0.04%
Cash Account Trust - Government & Agency	1,105,184	$	1,105
Portfolio - Government Cash Managed

Principal Exchange-Traded Funds - 1.96%
Principal US Small Cap Index ETF ^(a),(b)	2,440,600		58,843

Principal Funds, Inc. Class R-6 - 2.85%
Multi-Manager Equity Long/Short Fund ^(a),(b)	8,594,374		85,600

Principal Funds, Inc. Institutional Class - 95.23%
Blue Chip Fund ^(a)	10,676,184		180,428
Diversified International Fund ^(a)	39,811,059		450,661
Diversified Real Asset Fund ^(a)	6,709,885		73,540
EDGE MidCap Fund ^(a)	6,585,634		76,986
Equity Income Fund ^(a)	12,717,860		339,821
Global Multi-Strategy Fund ^(a)	7,783,049		84,135
Global Real Estate Securities Fund ^(a)	6,622,709		59,075
Government & High Quality Bond Fund ^(a)	6,573,464		71,322
High Yield Fund ^(a)	6,348,433		45,645
Income Fund ^(a)	16,494,962		159,341
International Small Company Fund ^(a)	4,508,591		44,635
LargeCap Growth Fund ^(a)	24,090,416		238,254
LargeCap Value Fund ^(a)	28,247,352		323,715
MidCap Fund ^(a)	8,867,761		196,953
Origin Emerging Markets Fund ^(a)	12,522,380		111,324
Preferred Securities Fund ^(a)	4,352,805		44,529
Principal Capital Appreciation Fund ^(a)	2,553,405		148,710
Short-Term Income Fund ^(a)	3,672,725		44,881
Small-MidCap Dividend Income Fund ^(a)	10,989,060		161,649
		$	2,855,604
TOTAL INVESTMENT COMPANIES		$	3,001,152
Total Investments		$	3,001,152
Other Assets and Liabilities - (0.08)%		$	(2,434	)
TOTAL NET ASSETS - 100.00%		$	2,998,718


Schedule of Investments
SAM Conservative Growth Portfolio
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Blue Chip Fund	11,633,252	$	161,606	301,212	$	4,704	1,258,280		$	20,339	10,676,184	$	146,461
Diversified International Fund	31,070,397		320,387	11,032,989		124,384	2,292,327			25,925	39,811,059		416,850
Diversified Real Asset Fund	9,371,600		110,525	159,648		1,670	2,821,363			30,656	6,709,885		76,990
EDGE MidCap Fund	5,465,680		54,660	1,325,367		15,471	205,413			2,459	6,585,634		67,689
Equity Income Fund	13,840,481		203,372	340,649		8,864	1,463,270			38,038	12,717,860		185,616
Global Multi-Strategy Fund	28,317,124		303,779	926,890		9,887	21,460,965			229,091	7,783,049		79,262
Global Real Estate Securities Fund	8,806,142		76,456	382,964		3,471	2,566,397			23,578	6,622,709		55,615
Government & High Quality Bond	7,101,627		74,055	314,494		3,431	842,657			9,203	6,573,464		68,500
Fund
High Yield Fund	2,714,830		18,184	3,961,051		27,669	327,448			2,343	6,348,433		43,364
Income Fund	17,404,253		158,615	775,601		7,386	1,684,892			15,991	16,494,962		149,701
International Small Company Fund	—		—	4,524,151		44,516	15,560			156	4,508,591		44,358
LargeCap Growth Fund	34,300,020		260,952	3,759,518		38,727	13,969,122			136,537	24,090,416		154,577
LargeCap Value Fund	22,838,239		254,579	7,644,173		86,761	2,235,060			26,062	28,247,352		312,656
MidCap Fund	12,146,404		203,003	805,397		16,704	4,084,040			90,571	8,867,761		128,112
MidCap Value Fund I	5,752,349		87,153	659,625		8,187	6,411,974			82,540	—		—
Multi-Manager Equity Long/Short	—		—	8,609,854		84,852	15,480			155	8,594,374		84,699
Fund
Origin Emerging Markets Fund	7,214,325		70,969	6,083,682		48,391	775,627			6,974	12,522,380		111,643
Preferred Securities Fund	336,112		2,051	4,227,559		42,829	210,866			2,146	4,352,805		42,734
Principal Capital Appreciation Fund	2,669,715		75,525	158,296		9,006	274,606			15,799	2,553,405		71,762
Principal US Small Cap Index ETF	—		—	2,440,600		60,676	—			—	2,440,600		60,676
Short-Term Income Fund	3,966,906		47,502	131,743		1,605	425,924			5,174	3,672,725		43,903
SmallCap Growth Fund I	522,274		5,289	47,995		527	570,269			6,125	—		—
SmallCap Value Fund II	1,264,876		12,648	151,956		1,689	1,416,832			16,284	—		—
Small-MidCap Dividend Income Fund	9,664,835		109,273	2,413,011		33,205	1,088,786			14,989	10,989,060		127,037
		$	2,610,583	$		684,612			$	801,135		$	2,472,205


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Blue Chip Fund	$		887	$			490			$			3,423
Diversified International Fund			5,248				(1,996	)					—
Diversified Real Asset Fund			975				(4,549	)					—
EDGE MidCap Fund			222				17						—
Equity Income Fund			8,287				11,418						—
Global Multi-Strategy Fund			2,776				(5,313	)					6,267
Global Real Estate Securities Fund			1,882				(734	)					1,412
Government & High Quality Bond Fund			2,804				217						—
High Yield Fund			1,835				(146	)					—
Income Fund			5,950				(309	)					—
International Small Company Fund			—				(2	)					—
LargeCap Growth Fund			1,049				(8,565	)					36,623
LargeCap Value Fund			7,018				(2,622	)					18,795
MidCap Fund			340				(1,024	)					15,605
MidCap Value Fund I			2,473				(12,800	)					5,577
Multi-Manager Equity Long/Short Fund			—				2						—
Origin Emerging Markets Fund			545				(743	)					—
Preferred Securities Fund			971				—						30
Principal Capital Appreciation Fund			2,400				3,030						6,227
Principal US Small Cap Index ETF			—				—						—
Short-Term Income Fund			919				(30	)					—
SmallCap Growth Fund I			—				309						526
SmallCap Value Fund II			300				1,947						1,390
Small-MidCap Dividend Income Fund			3,417				(452	)					2,461
	$		50,298	$			(21,855	)		$			98,336
Amounts in thousands except shares


			Schedule of Investments
			SAM Flexible Income Portfolio
			October 31, 2016


INVESTMENT COMPANIES - 100.06%	Shares Held		Value(000	's)
Money Market Funds - 0.04%
Cash Account Trust - Government & Agency	878,005	$	878
Portfolio - Government Cash Managed

Principal Exchange-Traded Funds - 2.52%
Principal EDGE Active Income ETF ^(a)	1,592,800		63,824

Principal Funds, Inc. Institutional Class - 97.50%
Diversified International Fund ^(a)	6,997,342		79,209
Equity Income Fund ^(a)	8,308,158		221,994
Global Diversified Income Fund ^(a)	12,175,068		166,311
Global Real Estate Securities Fund ^(a)	6,875,660		61,331
Government & High Quality Bond Fund ^(a)	24,062,961		261,083
High Yield Fund ^(a)	26,159,395		188,086
Income Fund ^(a)	80,411,185		776,772
Inflation Protection Fund ^(a)	12,306,889		107,316
International Emerging Markets Fund ^(a)	1,016,205		22,946
LargeCap Growth Fund ^(a)	8,003,686		79,156
LargeCap Value Fund ^(a)	6,527,200		74,802
Preferred Securities Fund ^(a)	3,949,667		40,405
Real Estate Debt Income Fund ^(a)	5,185,644		50,405
Short-Term Income Fund ^(a)	19,172,343		234,286
Small-MidCap Dividend Income Fund ^(a)	7,110,458		104,595
		$	2,468,697
TOTAL INVESTMENT COMPANIES		$	2,533,399
Total Investments		$	2,533,399
Other Assets and Liabilities - (0.06)%		$	(1,483	)
TOTAL NET ASSETS - 100.00%		$	2,531,916


Schedule of Investments
SAM Flexible Income Portfolio
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016			2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares			Cost
Core Plus Bond Fund	4,612,225	$	50,254	154,049	$	1,660	4,766,274		$	52,103	—		$	—
Diversified International Fund	4,826,950		52,793	2,254,005		25,052	83,613			956	6,997,342			76,824
Equity Income Fund	8,810,375		172,107	959,801		25,015	1,462,018			38,473	8,308,158			157,519
Global Diversified Income Fund	10,814,423		149,173	1,723,027		23,001	362,382			4,760	12,175,068			166,795
Global Real Estate Securities Fund	2,476,400		19,254	4,485,686		41,242	86,426			812	6,875,660			59,684
Government & High Quality Bond	21,722,756		233,005	3,383,292		36,907	1,043,087			11,389	24,062,961			258,352
Fund
High Yield Fund	25,136,571		184,489	3,907,557		27,061	2,884,733			20,030	26,159,395			188,951
Income Fund	73,671,795		699,204	9,433,413		90,337	2,694,023			25,345	80,411,185			762,712
Inflation Protection Fund	11,430,283		98,236	1,400,060		11,911	523,454			4,369	12,306,889			105,622
International Emerging Markets Fund	1,232,779		27,294	78,832		1,582	295,406			5,761	1,016,205			21,787
LargeCap Growth Fund	8,176,250		68,734	1,941,415		19,629	2,113,979			20,521	8,003,686			65,692
LargeCap Value Fund	7,178,374		83,384	1,308,427		15,153	1,959,601			22,610	6,527,200			73,274
Preferred Securities Fund	1,134,487		6,502	2,865,181		29,038	50,001			513	3,949,667			35,026
Principal EDGE Active Income ETF	—		—	1,592,800		61,633	—			—	1,592,800			61,633
Real Estate Debt Income Fund	—		—	5,198,236		50,153	12,592			124	5,185,644			50,028
Short-Term Income Fund	17,646,361		211,749	2,709,996		33,062	1,184,014			14,373	19,172,343			230,263
SmallCap Growth Fund I	173,761		1,772	15,968		175	189,729			2,037	—			—
Small-MidCap Dividend Income Fund	7,685,268		87,751	818,383		10,927	1,393,193			19,371	7,110,458			79,531
		$	2,145,701	$		503,538			$	243,547		$	2,393,693


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Core Plus Bond Fund	$		725	$			189			$				—
Diversified International Fund			832				(65	)						—
Equity Income Fund			5,333				(1,130	)						—
Global Diversified Income Fund			8,631				(619	)						—
Global Real Estate Securities Fund			862				—							398
Government & High Quality Bond Fund			9,273				(171	)						—
High Yield Fund			11,609				(2,569	)						—
Income Fund			26,692				(1,484	)						—
Inflation Protection Fund			792				(156	)						—
International Emerging Markets Fund			228				(1,328	)						—
LargeCap Growth Fund			253				(2,150	)					8,815
LargeCap Value Fund			2,241				(2,653	)					5,992
Preferred Securities Fund			1,118				(1	)						99
Principal EDGE Active Income ETF			949				—							—
Real Estate Debt Income Fund			706				(1	)						—
Short-Term Income Fund			4,378				(175	)						—
SmallCap Growth Fund I			—				90							175
Small-MidCap Dividend Income Fund			2,506				224						1,981
	$		77,128	$			(11,999	)		$			17,460
Amounts in thousands except shares


			Schedule of Investments
			SAM Strategic Growth Portfolio
			October 31, 2016


INVESTMENT COMPANIES - 100.09%	Shares Held		Value(000	's)
Money Market Funds - 0.06%
Cash Account Trust - Government & Agency	1,081,487	$	1,081
Portfolio - Government Cash Managed

Principal Exchange-Traded Funds - 7.10%
Principal EDGE Active Income ETF ^(a)	1,859,800		74,522
Principal US Small Cap Index ETF ^(a),(b)	2,195,700		52,939
		$	127,461
Principal Funds, Inc. Class R-6 - 2.20%
Multi-Manager Equity Long/Short Fund ^(a),(b)	3,967,901		39,520

Principal Funds, Inc. Institutional Class - 90.73%
Diversified International Fund ^(a)	30,096,449		340,692
EDGE MidCap Fund ^(a)	3,283,838		38,388
Equity Income Fund ^(a)	7,689,136		205,454
Global Multi-Strategy Fund ^(a)	3,244,255		35,070
Global Real Estate Securities Fund ^(a)	7,534,679		67,209
International Small Company Fund ^(a)	3,561,614		35,260
LargeCap Growth Fund ^(a)	22,176,298		219,324
LargeCap Value Fund ^(a)	16,923,724		193,946
Origin Emerging Markets Fund ^(a)	13,791,097		122,603
Principal Capital Appreciation Fund ^(a)	4,636,762		270,045
Real Estate Debt Income Fund ^(a)	1,855,959		18,040
Small-MidCap Dividend Income Fund ^(a)	5,612,929		82,566
		$	1,628,597
TOTAL INVESTMENT COMPANIES		$	1,796,659
Total Investments		$	1,796,659
Other Assets and Liabilities - (0.09)%		$	(1,533	)
TOTAL NET ASSETS - 100.00%		$	1,795,126


Schedule of Investments
SAM Strategic Growth Portfolio
October 31, 2016


	October 31,		October 31,								October 31,		October 31,
Affiliated Securities	2015		2015	Purchases		Purchases	Sales			Sales	2016		2016
	Shares		Cost	Shares		Cost	Shares			Proceeds	Shares		Cost
Diversified International Fund	30,510,698	$	341,074	2,319,325	$	25,605	2,733,574		$	30,957	30,096,449	$	333,385
EDGE MidCap Fund	—		—	3,421,451		39,666	137,613			1,651	3,283,838		38,030
Equity Income Fund	9,766,011		145,610	253,623		6,602	2,330,498			61,816	7,689,136		112,385
Global Multi-Strategy Fund	13,929,378		153,599	447,219		4,769	11,132,342			118,491	3,244,255		35,453
Global Real Estate Securities Fund	8,557,746		73,527	362,813		3,293	1,385,880			12,609	7,534,679		63,485
International Small Company Fund	—		—	3,586,111		35,285	24,497			244	3,561,614		35,037
LargeCap Growth Fund	21,388,343		145,101	2,706,664		27,696	1,918,709			19,142	22,176,298		153,356
LargeCap Value Fund	16,923,137		190,935	1,916,873		22,239	1,916,286			22,088	16,923,724		188,573
MidCap Value Fund I	8,014,819		128,848	923,904		11,468	8,938,723			115,082	—		—
Multi-Manager Equity Long/Short	—		—	3,980,066		39,223	12,165			122	3,967,901		39,102
Fund
Origin Emerging Markets Fund	11,493,883		113,068	4,429,156		35,256	2,131,942			19,250	13,791,097		127,111
Principal Capital Appreciation Fund	4,898,084		192,130	289,661		16,484	550,983			31,672	4,636,762		175,180
Principal EDGE Active Income ETF	—		—	1,859,800		72,413	—			—	1,859,800		72,413
Principal US Small Cap Index ETF	—		—	2,195,700		54,599	—			—	2,195,700		54,599
Real Estate Debt Income Fund	—		—	1,923,699		18,473	67,740			667	1,855,959		17,818
SmallCap Growth Fund I	1,227,899		12,083	116,609		1,281	1,344,508			14,433	—		—
SmallCap Value Fund II	2,691,362		25,000	326,593		3,634	3,017,955			34,701	—		—
Small-MidCap Dividend Income Fund	5,882,535		65,583	423,666		5,604	693,272			9,513	5,612,929		61,433
		$	1,586,558	$		423,590			$	492,438		$	1,507,360


						Realized Gain/Loss					Realized Gain from
			Income			on Investments				Capital Gain Distributions
Diversified International Fund	$		5,153	$			(2,337	)		$			—
EDGE MidCap Fund			—				15						—
Equity Income Fund			5,862				21,989						—
Global Multi-Strategy Fund			1,363				(4,424	)					3,083
Global Real Estate Securities Fund			1,884				(726	)					1,365
International Small Company Fund			—				(4	)					—
LargeCap Growth Fund			655				(299	)					22,884
LargeCap Value Fund			5,211				(2,513	)					13,969
MidCap Value Fund I			3,420				(25,234	)					7,718
Multi-Manager Equity Long/Short Fund			—				1						—
Origin Emerging Markets Fund			866				(1,963	)					—
Principal Capital Appreciation Fund			4,387				(1,762	)					11,408
Principal EDGE Active Income ETF			1,110				—						—
Principal US Small Cap Index ETF			—				—						—
Real Estate Debt Income Fund			263				12						—
SmallCap Growth Fund I			—				1,069						1,239
SmallCap Value Fund II			638				6,067						2,959
Small-MidCap Dividend Income Fund			1,933				(241	)					1,498
	$		32,745	$			(10,350	)		$			66,123
Amounts in thousands except shares


Schedule of Investments

Short-Term Income Fund

October 31, 2016





	INVESTMENT COMPANIES - 2.46%		Shares Held		Value(000			's)			Principal

	Money Market Funds - 2.46%								BONDS (continued)		Amount (000's) Value (000's)

	Morgan Stanley Institutional Liquidity Funds -		76,202,198		$		76,202		Automobile Asset Backed Securities (continued)

	Government Portfolio								Capital Auto Receivables Asset Trust 2014-2

									2.03%, 12/20/2018		$	9,250	$	9,287

	TOTAL INVESTMENT COMPANIES				$		76,202		2.41%, 05/20/2019			1,950		1,966

			Principal						Capital Auto Receivables Asset Trust 2016-2
									1.32%, 01/22/2019^(c)			11,750		11,758
	BONDS- 98.22	%	Amount (000's)		Value(000			's)

	Aerospace & Defense - 1.68%								Capital Auto Receivables Asset Trust 2016-3
									1.36%, 04/22/2019^(c)			4,750		4,752
	Lockheed Martin Corp

	1.85%, 11/23/2018		$	6,500		$	6,562		CPS Auto Receivables Trust 2013-A
									1.31%, 06/15/2020^(a),(c)			4,956		4,943
	2.50%, 11/23/2020			6,500			6,668

	Rolls-Royce PLC								CPS Auto Receivables Trust 2013-B

	2.38%, 10/14/2020^(a)			5,000			5,066		1.82%, 09/15/2020^(a),(c)			3,103		3,105

	United Technologies Corp								CPS Auto Receivables Trust 2013-C

	1.23%, 11/01/2019^(b),(c)			14,500			14,509		4.30%, 08/15/2019^(a)			6,250		6,326

	1.50%, 11/01/2019^(b)			14,400			14,409		CPS Auto Receivables Trust 2013-D

	1.95%, 11/01/2021^(b)			5,000			5,005		1.54%, 07/16/2018^(a),(c)			339		339
									3.97%, 11/15/2019^(a),(c)			1,000		1,006
					$		52,219
									CPS Auto Receivables Trust 2014-B

	Agriculture - 0.82%								1.11%, 11/15/2018^(a)			822		822
	Cargill Inc

	6.00%, 11/27/2017^(a)			24,153			25,324		CPS Auto Receivables Trust 2014-C
									1.31%, 02/15/2019^(a),(c)			3,149		3,149

									3.77%, 08/17/2020^(a)			4,330		4,334
	Airlines - 0.84%

	Delta Air Lines 2009-1 Class A Pass Through								CPS Auto Receivables Trust 2014-D
									1.49%, 04/15/2019^(a)			2,512		2,514
	Trust

	7.75%, 06/17/2021			12,524			14,184		CPS Auto Receivables Trust 2015-C
									1.77%, 06/17/2019^(a)			6,993		7,007
	Delta Air Lines 2012-1 Class A Pass Through

	Trust								CPS Auto Receivables Trust 2016-B
									2.07%, 11/15/2019^(a)			4,503		4,523
	4.75%, 11/07/2021			3,295			3,542

	UAL 2009-1 Pass Through Trust								CPS Auto Receivables Trust 2016-C
									1.62%, 01/15/2020^(a)			11,154		11,161
	10.40%, 05/01/2018			984			988

	UAL 2009-2A Pass Through Trust								CPS Auto Trust
									1.48%, 03/16/2020^(a)			1,590		1,590

	9.75%, 01/15/2017			7,204			7,325		1.50%, 06/15/2020^(a),(c)			9,600		9,602
					$		26,039
									Ford Credit Auto Owner Trust 2015-REV2

	Automobile Asset Backed Securities - 12.77%								2.44%, 01/15/2027^(a),(c)			12,327		12,657
	AmeriCredit Automobile Receivables 2015-4
									Ford Credit Auto Owner Trust 2016-REV2

	1.26%, 04/08/2019			4,715			4,717		2.03%, 12/15/2027^(a)			14,000		14,062
	AmeriCredit Automobile Receivables 2016-1
									Ford Credit Auto Owner Trust/Ford Credit
	1.52%, 06/10/2019			6,429			6,438
									2014-RE	V1

	AmeriCredit Automobile Receivables Trust								2.26%, 11/15/2025^(a),(c)			11,327		11,527
	2013-1
									Santander Drive Auto Receivables Trust 2013-
	1.57%, 01/08/2019			3,838			3,841
									1
	2.09%, 02/08/2019			4,400			4,415
									1.76%, 01/15/2019			7,187		7,199
	AmeriCredit Automobile Receivables Trust
									2.27%, 01/15/2019			6,740		6,782
	2013-5
									Santander Drive Auto Receivables Trust 2013-
	2.29%, 11/08/2019			3,965			3,989

	2.86%, 12/09/2019^(c)			14,920			15,172		3
									2.42%, 04/15/2019			2,300		2,324
	AmeriCredit Automobile Receivables Trust
									Santander Drive Auto Receivables Trust 2013-
	2014-1
									5

	0.90%, 02/08/2019			1,017			1,017		2.25%, 06/17/2019^(c)			2,582		2,593
	2.15%, 03/09/2020^(c)			2,400			2,416
									2.73%, 10/15/2019^(c)			5,860		5,942
	2.54%, 06/08/2020^(c)			10,500			10,626
									Santander Drive Auto Receivables Trust 2014-
	AmeriCredit Automobile Receivables Trust
									1
	2014-2

	2.57%, 07/08/2020^(c)			9,400			9,513		1.59%, 10/15/2018			199		199
									2.36%, 04/15/2020			13,890		13,965
	AmeriCredit Automobile Receivables Trust
									2.91%, 04/15/2020			3,500		3,557
	2014-3

	2.58%, 09/08/2020^(c)			3,200			3,244		Santander Drive Auto Receivables Trust 2014-
									2
	AmeriCredit Automobile Receivables Trust
									1.62%, 02/15/2019			1,922		1,923

	2015-2								2.76%, 02/18/2020^(c)			3,600		3,665
	0.83%, 09/10/2018^(c)			1,252			1,252
									Santander Drive Auto Receivables Trust 2014-
	Americredit Automobile Receivables Trust
									3

	2016-4								2.13%, 08/17/2020^(c)			9,727		9,781
	1.34%, 04/08/2020			12,350			12,351
									2.65%, 08/17/2020			2,770		2,807
	Capital Auto Receivables Asset Trust 2013-1
									Santander Drive Auto Receivables Trust 2014-
	1.74%, 10/22/2018			5,283			5,287

	2.19%, 09/20/2021^(c)			6,650			6,670		5
									2.46%, 06/15/2020			3,750		3,792
	Capital Auto Receivables Asset Trust 2013-2
									Santander Drive Auto Receivables Trust 2015-
	3.30%, 06/20/2019			10,500			10,618
									1
	Capital Auto Receivables Asset Trust 2013-3
									2.57%, 04/15/2021			11,000		11,126
	2.32%, 07/20/2018			5,500			5,516
									Santander Drive Auto Receivables Trust 2015-
	Capital Auto Receivables Asset Trust 2014-1
									2

	2.22%, 01/22/2019			8,500			8,545		2.44%, 04/15/2021^(c)			8,900		8,999
	2.84%, 04/22/2019			8,600			8,702


Schedule of Investments
Short-Term Income Fund
October 31, 2016



				Principal						Principal
	BONDS (continued)			Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
	Automobile Asset Backed Securities (continued)						Banks (continued)
	Santander Drive Auto Receivables Trust 2016-						Fifth Third Bank/Cincinnati OH	(continued)
	3						2.30%, 03/15/2019		$	7,600	$	7,696
	1.34%, 11/15/2019		$	10,400	$	10,403	Goldman Sachs Group Inc/The
	Westlake Automobile Receivables Trust 2015-						1.92%, 11/15/2018^(c)			9,909		9,991
	1						2.04%, 04/23/2020^(c)			23,990		24,131
	1.17%, 03/15/2018^(a),(c)			307		307	2.60%, 04/23/2020			9,600		9,758
	2.29%, 11/16/2020^(a)			5,145		5,176	JPMorgan Chase & Co
	Westlake Automobile Receivables Trust 2015-						2.11%, 10/24/2023^(c)			15,000		14,941
	2						2.30%, 08/15/2021			9,500		9,507
	1.28%, 07/16/2018^(a),(c)			3,494		3,495	4.25%, 10/15/2020			19,500		21,058
	Westlake Automobile Receivables Trust 2015-						JPMorgan Chase Bank NA
	3						6.00%, 10/01/2017			29,480		30,706
	1.42%, 05/17/2021^(a),(c)			8,984		8,988	KeyBank NA/Cleveland OH
	Westlake Automobile Receivables Trust 2016-						1.60%, 08/22/2019			2,000		1,994
	1						1.70%, 06/01/2018			6,500		6,521
	1.82%, 01/15/2019^(a)			7,014		7,031	2.35%, 03/08/2019			14,350		14,598
	Westlake Automobile Receivables Trust 2016-						Morgan Stanley
	2						1.88%, 01/05/2018			4,664		4,680
	1.57%, 06/17/2019^(a)			14,000		14,025	2.13%, 04/25/2018			9,750		9,821
	Westlake Automobile Receivables Trust 2016-						2.28%, 04/21/2021^(c)			24,000		24,445
	3						2.28%, 10/24/2023^(c)			29,000		28,965
	2.07%, 12/15/2021^(a),(c)			11,400		11,399	5.50%, 07/24/2020			9,500		10,578
				$		396,237	National City Bank/Cleveland OH
	Automobile Floor Plan Asset Backed Securities - 0.40%						1.20%, 06/07/2017^(c)			4,500		4,500
	Volkswagen Credit Auto Master Trust						PNC Bank NA
	0.88%, 07/22/2019^(a),(c)			12,327		12,303	1.60%, 06/01/2018			4,500		4,511
							4.88%, 09/21/2017			15,355		15,810
	Automobile Manufacturers - 2.19%						6.88%, 04/01/2018			4,080		4,376
	Daimler Finance North America LLC						PNC Financial Services Group Inc/The
	1.26%, 03/02/2018^(a),(c)			9,495		9,519	5.63%, 02/01/2017			7,231		7,311
	1.38%, 08/01/2017^(a)			6,664		6,666	SunTrust Bank/Atlanta GA
	1.75%, 10/30/2019^(a)			6,650		6,648	7.25%, 03/15/2018			23,149		24,845
	Ford Motor Credit Co LLC						SunTrust Banks Inc
	2.02%, 05/03/2019			9,600		9,598	2.90%, 03/03/2021			12,500		12,903
	PACCAR Financial Corp						US Bank NA/Cincinnati OH
	1.45%, 03/09/2018			6,664		6,690	1.37%, 10/28/2019^(c)			14,209		14,222
	2.20%, 09/15/2019			9,327		9,504	Wells Fargo & Co
	Toyota Motor Credit Corp						2.60%, 07/22/2020			14,327		14,598
	1.20%, 04/06/2018			9,600		9,589	Wells Fargo Bank NA
	2.10%, 01/17/2019			9,600		9,762	1.65%, 01/22/2018			14,250		14,299
				$		67,976	6.00%, 11/15/2017			8,500		8,895
	Banks- 20.04	%								$		621,722
	Bank of America Corp						Beverages - 1.55%
	2.30%, 04/19/2021^(c)			9,250		9,453	Anheuser-Busch InBev Finance Inc
	2.50%, 10/21/2022			12,000		11,971	2.15%, 02/01/2019			14,414		14,631
	2.60%, 01/15/2019			12,000		12,199	PepsiCo Inc
	2.63%, 10/19/2020			15,750		16,014	1.00%, 10/13/2017			4,750		4,752
	Bank of America NA						1.35%, 10/04/2019			6,400		6,397
	1.15%, 06/15/2017^(c)			7,750		7,748	2.15%, 10/14/2020			9,500		9,669
	5.30%, 03/15/2017			33,524		34,010	SABMiller Holdings Inc
	Bank of New York Mellon Corp/The						1.45%, 08/01/2018^(a),(c)			4,500		4,502
	1.94%, 10/30/2023^(c)			24,500		24,501	2.45%, 01/15/2017^(a)			8,000		8,023
	2.05%, 05/03/2021			6,500		6,518				$		47,974
	2.20%, 05/15/2019			11,327		11,509	Biotechnology - 1.52%
	2.50%, 04/15/2021			5,700		5,812	Amgen Inc
	BB&T Corp						1.25%, 05/22/2017			9,000		9,009
	1.42%, 02/01/2019^(c)			5,664		5,683	2.20%, 05/22/2019			9,327		9,467
	2.05%, 05/10/2021			9,500		9,534	Biogen Inc
	Branch Banking & Trust Co						2.90%, 09/15/2020			14,000		14,438
	1.12%, 05/23/2017^(c)			14,450		14,446	Gilead Sciences Inc
	Capital One NA/Mclean VA						1.85%, 09/04/2018			4,750		4,790
	1.46%, 02/05/2018^(c)			9,327		9,336	1.95%, 03/01/2022			4,750		4,722
	1.62%, 09/13/2019^(c)			9,500		9,515	2.55%, 09/01/2020			4,750		4,868
	1.65%, 02/05/2018			9,327		9,335				$		47,294
	1.85%, 09/13/2019			9,500		9,490	Chemicals - 1.74%
	Citigroup Inc						Air Liquide Finance SA
	1.31%, 08/14/2017^(c)			8,000		8,002	1.75%, 09/27/2021^(a)			6,750		6,664
	1.70%, 04/27/2018			13,990		13,997	Airgas Inc
	2.19%, 10/26/2020^(c)			10,000		10,132	1.65%, 02/15/2018			12,592		12,653
	2.70%, 03/30/2021			14,100		14,343	Chevron Phillips Chemical Co LLC / Chevron
	Fifth Third Bank/Cincinnati OH						Phillips Chemical Co LP
	1.63%, 09/27/2019			4,750		4,735	1.70%, 05/01/2018^(a)			9,495		9,507
	2.25%, 06/14/2021			7,700		7,779
	See accompanying notes						440


Schedule of Investments
Short-Term Income Fund
October 31, 2016



	Principal							Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)			Amount (000's) Value (000's)
Chemicals (continued)					Electric (continued)
Chevron Phillips Chemical Co LLC / Chevron					Emera US Finance LP
Phillips Chemical Co LP (continued)					2.70%, 06/15/2021^(a)		$	6,700	$	6,819
2.45%, 05/01/2020^(a)	$	4,832	$	4,865	Fortis Inc/Canada
Westlake Chemical Corp					2.10%, 10/04/2021^(a)			4,750		4,711
4.63%, 02/15/2021^(a)		10,000		10,450	Indiantown Cogeneration LP
4.88%, 05/15/2023^(a)		9,600		9,984	9.77%, 12/15/2020			7,677		8,291
		$		54,123	NextEra Energy Capital Holdings Inc
Commercial Mortgage Backed Securities - 2.11%					1.59%, 06/01/2017			6,664		6,681
Ginnie Mae					7.30%, 09/01/2067^(c)			11,827		11,886
0.60%, 07/16/2054^(c),(d)		39,139		1,771	Public Service Co of New Mexico
0.75%, 09/16/2055^(c),(d)		35,798		1,761	7.95%, 05/15/2018			24,440		26,688
0.81%, 06/16/2055^(c),(d)		44,334		2,094	San Diego Gas & Electric Co
0.83%, 01/16/2054^(c),(d)		50,773		2,627	1.91%, 02/01/2022			3,770		3,755
0.85%, 10/16/2054^(c),(d)		55,093		2,472	Southern California Edison Co
0.87%, 03/16/2052^(c),(d)		41,060		2,560	1.85%, 02/01/2022			6,915		6,903
0.89%, 10/16/2054^(c),(d)		63,351		3,375	Southern Co/The
0.92%, 01/16/2055^(c),(d)		105,612		4,947	1.55%, 07/01/2018			5,800		5,810
0.93%, 02/16/2048^(c),(d)		37,896		1,919	Talen Energy Supply LLC
0.93%, 02/16/2055^(c),(d)		75,233		3,002	6.50%, 05/01/2018			4,832		5,013
0.94%, 10/16/2054^(c),(d)		76,643		3,875	Texas-New Mexico Power Co
1.00%, 09/16/2054^(c),(d)		45,124		2,479	9.50%, 04/01/2019^(a)			4,798		5,558
1.11%, 06/16/2045^(c),(d)		82,644		5,039	TransAlta Corp
1.12%, 08/16/2042^(c),(d)		86,397		5,118	6.90%, 05/15/2018^(c)			18,985		19,951
1.12%, 07/16/2056^(c),(d)		24,435		1,709				$		132,802
1.17%, 02/16/2046^(c),(d)		80,529		5,044	Electronics - 1.10%
1.26%, 10/16/2051^(c),(d)		4,342		312	Fortive Corp
1.37%, 12/16/2036^(c),(d)		61,462		3,897	1.80%, 06/15/2019^(a)			3,500		3,509
JPMDB Commercial Mortgage Securities					2.35%, 06/15/2021^(a)			6,700		6,717
Trust					Honeywell International Inc
0.00%, 12/15/2049^(b),(c),(e)		11,500		11,500	1.85%, 11/01/2021			24,000		23,928
		$		65,501				$		34,154
Commercial Services - 0.15%					Engineering & Construction - 0.31%
Equifax Inc					SBA Tower Trust
2.30%, 06/01/2021		4,800		4,819	2.88%, 07/15/2046^(a)			9,600		9,722

Computers - 2.15%					Finance - Mortgage Loan/Banker - 3.41%
Apple Inc					Fannie Mae
1.00%, 05/03/2018		4,664		4,658	1.38%, 02/26/2021			17,750		17,767
1.70%, 02/22/2019		6,747		6,807	1.50%, 11/30/2020			41,500		41,818
1.95%, 02/23/2021^(c)		4,750		4,903	1.88%, 12/28/2020			30,500		31,168
Diamond 1 Finance Corp / Diamond 2 Finance					Freddie Mac
Corp					1.75%, 05/30/2019			14,750		15,030
3.48%, 06/01/2019^(a)		14,400		14,775				$		105,783
Hewlett Packard Enterprise Co					Food- 1.41	%
2.45%, 10/05/2017^(a)		9,500		9,620	Kraft Heinz Foods Co
2.85%, 10/05/2018^(a)		6,650		6,799	1.60%, 06/30/2017			5,664		5,676
International Business Machines Corp					2.00%, 07/02/2018			4,731		4,765
1.95%, 02/12/2019		9,250		9,380	Mondelez International Holdings Netherlands
2.25%, 02/19/2021		9,500		9,699	BV
		$		66,641	1.50%, 10/28/2019^(a),(c)			19,000		19,033
Cosmetics & Personal Care - 0.25%					1.63%, 10/28/2019^(a)			14,250		14,200
Procter & Gamble Co/The								$		43,674
1.70%, 11/03/2021^(b),(f)		7,700		7,684	Gas- 0.80	%
					Spire Inc
Credit Card Asset Backed Securities - 1.33%					1.57%, 08/15/2017^(c)			24,886		24,887
Cabela's Credit Card Master Note Trust
0.88%, 03/16/2020^(c)		5,878		5,878	Healthcare - Products - 1.40%
0.98%, 07/15/2022^(c)		9,495		9,446	Abbott Laboratories
1.01%, 06/15/2020^(a),(c)		9,214		9,211	2.00%, 03/15/2020			18,653		18,810
1.06%, 02/18/2020^(a),(c)		6,982		6,985	Becton Dickinson and Co
1.18%, 08/16/2021^(a),(c)		9,745		9,784	1.80%, 12/15/2017			4,664		4,684
		$		41,304	2.68%, 12/15/2019			4,664		4,807
Diversified Financial Services - 0.93%					Medtronic Inc
Murray Street Investment Trust I					1.65%, 03/15/2020^(c)			5,250		5,319
4.65%, 03/09/2017^(c)		28,398		28,740	2.50%, 03/15/2020			9,495		9,746
								$		43,366
Electric - 4.28%					Healthcare - Services - 1.20%
Black Hills Corp					Aetna Inc
2.50%, 01/11/2019		5,000		5,063	1.70%, 06/07/2018			2,000		2,006
Dominion Resources Inc/VA					1.90%, 06/07/2019			4,800		4,838
1.40%, 09/15/2017		9,327		9,331	Anthem Inc
2.96%, 07/01/2019^(c)		6,200		6,342	5.88%, 06/15/2017			11,164		11,477


Schedule of Investments
Short-Term Income Fund
October 31, 2016



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)				BONDS (continued)		Amount (000's) Value (000's)
Healthcare - Services (continued)						Insurance (continued)
Roche Holdings Inc						New York Life Global Funding
1.18%, 09/30/2019^(a),(c)		$	9,327	$	9,341	1.45%, 12/15/2017^(a)		$	4,500	$	4,514
UnitedHealth Group Inc						1.95%, 02/11/2020^(a)			16,941		17,023
1.70%, 02/15/2019			9,500		9,534	2.00%, 04/13/2021^(a)			9,600		9,626
			$		37,196	2.15%, 06/18/2019^(a)			12,626		12,847
Home Equity Asset Backed Securities - 0.60%						Prudential Financial Inc
ACE Securities Corp Home Equity Loan Trust						8.88%, 06/15/2068^(c)			25,950		28,675
Series 2005-HE2									$		181,236
1.25%, 04/25/2035^(c)			582		582	Internet - 0.31%
Asset Backed Securities Corp Home Equity						Amazon.com Inc
Loan Trust Series OOMC 2005-HE6						2.60%, 12/05/2019			9,327		9,639
1.30%, 07/25/2035^(c)			1,053		1,054
Bayview Financial Acquisition Trust						Machinery - Diversified - 0.60%
1.15%, 08/28/2044^(c)			88		88	John Deere Capital Corp
Centex Home Equity Loan Trust 2005-D						1.35%, 01/16/2018			9,327		9,346
0.96%, 10/25/2035^(c)			2,135		2,134	2.05%, 03/10/2020			9,300		9,388
Credit Suisse First Boston Mortgage Securities									$		18,734
Corp						Manufactured Housing Asset Backed Securities - 0.00%
4.80%, 05/25/2035			2,425		2,452	Conseco Financial Corp
Home Equity Asset Trust 2004-6						7.70%, 09/15/2026			100		105
1.21%, 12/25/2034^(c)			558		557
Home Equity Asset Trust 2005-4						Media- 0.56	%
1.24%, 10/25/2035^(c)			2,116		2,094	Time Warner Cable LLC
JP Morgan Mortgage Acquisition Corp 2005-						8.25%, 04/01/2019			9,495		10,856
OPT1						Walt Disney Co/The
0.98%, 06/25/2035^(c)			469		468	2.30%, 02/12/2021			6,500		6,658
New Century Home Equity Loan Trust 2005-									$		17,514
3						Mining - 0.46%
1.01%, 07/25/2035^(c)			310		309
						Glencore Finance Canada Ltd
RASC Series 2005-AHL2 Trust						2.70%, 10/25/2017^(a),(c)			14,159		14,210
0.88%, 10/25/2035^(c)			2,625		2,595
RASC Series 2005-EMX2 Trust						Miscellaneous Manufacturers - 0.44%
1.04%, 07/25/2035^(c)			2,282		2,267
						General Electric Co
Structured Asset Securities Corp Mortgage						5.55%, 05/04/2020			3,200		3,604
Loan Trust Series 2005-GEL4						Ingersoll-Rand Global Holding Co Ltd
1.46%, 08/25/2035^(c)			717		705
						6.88%, 08/15/2018			9,100		9,947
Terwin Mortgage Trust Series TMTS 2005-									$		13,551
14	HE					Mortgage Backed Securities - 1.89%
4.85%, 08/25/2036^(c)			1,182		1,201
						Adjustable Rate Mortgage Trust 2004-2
Wells Fargo Home Equity Asset-Backed						1.67%, 02/25/2035^(c)			82		82
Securities 2004-2 Trust						Alternative Loan Trust 2004-J8
1.37%, 10/25/2034^(c)			285		282
						6.00%, 02/25/2017			53		53
5.00%, 10/25/2034			1,756		1,751	Banc of America Funding 2004-1 Trust
			$		18,539	5.25%, 02/25/2019			351		358
Home Furnishings - 0.45%						Banc of America Funding 2004-3 Trust
Samsung Electronics America Inc						4.75%, 09/25/2019			331		332
1.75%, 04/10/2017^(a)			13,990		14,007
						Banc of America Mortgage Trust 2005-7
						5.00%, 08/25/2020			35		35
Housewares - 0.36%						BCAP LLC 2011-RR11 Trust
Newell Brands Inc						3.13%, 03/26/2035^(a),(c)			2,152		2,150
2.60%, 03/29/2019			4,800		4,897	CHL Mortgage Pass-Through Trust 2003-46
3.85%, 04/01/2023			5,800		6,155	3.10%, 01/19/2034^(c)			864		862
			$		11,052	CHL Mortgage Pass-Through Trust 2004-J1
Insurance - 5.84%						4.50%, 01/25/2019^(c)			59		60
Berkshire Hathaway Finance Corp						CHL Mortgage Pass-Through Trust 2004-J7
1.60%, 05/15/2017			11,490		11,540	5.00%, 09/25/2019			396		402
1.70%, 03/15/2019			6,500		6,552	Credit Suisse First Boston Mortgage Securities
Berkshire Hathaway Inc						Corp
2.20%, 03/15/2021			4,600		4,701	5.00%, 09/25/2019			62		58
2.75%, 03/15/2023			5,500		5,663	Credit Suisse Mortgage Capital Certificates
Hartford Financial Services Group Inc/The						2.74%, 07/27/2037^(a),(c)			294		294
8.13%, 06/15/2068^(c)			14,750		16,114	CSFB Mortgage-Backed Pass-Through
MassMutual Global Funding II						Certificates Series 2004-AR4
1.55%, 10/11/2019^(a)			9,650		9,652	1.49%, 05/25/2034^(c)			371		351
2.00%, 04/05/2017^(a)			5,430		5,448	CSFB Mortgage-Backed Trust Series 2004-7
2.00%, 04/15/2021^(a)			4,478		4,473	5.00%, 10/25/2019			247		246
2.10%, 08/02/2018^(a)			12,995		13,178	Freddie Mac REMICS
2.35%, 04/09/2019^(a)			8,700		8,874	0.98%, 06/15/2023^(c)			4		4
Metropolitan Life Global Funding I						Ginnie Mae
1.50%, 01/10/2018^(a)			5,250		5,255	4.50%, 08/20/2032			38		38
2.30%, 04/10/2019^(a)			16,827		17,101	GSMSC Pass-Through Trust 2009-4R
						0.98%, 12/26/2036^(a),(c)			2,146		2,110


Schedule of Investments
Short-Term Income Fund
October 31, 2016



		Principal						Principal
BONDS (continued)		Amount (000's) Value (000's)			BONDS (continued)			Amount (000's) Value (000's)
Mortgage Backed Securities (continued)					Other Asset Backed Securities (continued)
JP Morgan Mortgage Trust 2004-A3					MVW Owner Trust 2016-1
2.92%, 07/25/2034^(c)	$	1,230	$	1,218	2.25%, 12/20/2033^(a)		$	9,237	$	9,187
JP Morgan Mortgage Trust 2004-S1					OneMain Financial Issuance Trust 2014-1
5.00%, 09/25/2034		1,058		1,086	2.43%, 06/18/2024^(a),(c)			12,693		12,699
JP Morgan Resecuritization Trust Series 2010-					OneMain Financial Issuance Trust 2014-2
4					2.47%, 09/18/2024^(a)			15,605		15,637
2.83%, 10/26/2036^(a),(c)		310		309	OneMain Financial Issuance Trust 2015-2
MASTR Alternative Loan Trust 2003-9					2.57%, 07/18/2025^(a)			19,260		19,324
6.50%, 01/25/2019		372		379	PFS Financing Corp
MASTR Asset Securitization Trust 2004-11					1.13%, 02/15/2019^(a),(c)			15,520		15,519
5.00%, 12/25/2019		71		72	1.13%, 10/15/2019^(a),(c)			13,065		13,057
MASTR Asset Securitization Trust 2004-9					1.15%, 04/15/2020^(a),(c)			8,666		8,657
5.00%, 09/25/2019		252		254	1.48%, 02/15/2019^(a),(c)			4,600		4,597
PHH Mortgage Trust Series 2008-CIM1					1.87%, 10/15/2021^(a),(c),(f)			5,500		5,500
5.22%, 06/25/2038		2,826		2,802	PFS Tax Lien Trust 2014-1
Prime Mortgage Trust 2005-2					1.44%, 05/15/2029^(a),(c)			6,637		6,600
5.25%, 07/25/2020^(c)		601		609	RAAC Series 2006-RP2 Trust
Provident Funding Mortgage Loan Trust 2005-					0.78%, 02/25/2037^(a),(c)			1,157		1,147
1					RAMP Series 2005-RZ4 Trust
1.11%, 05/25/2035^(c)		3,989		3,830	0.93%, 11/25/2035^(c)			763		759
RALI Series 2003-QS23 Trust					Securitized Asset Backed Receivables LLC
5.00%, 12/26/2018		787		790	Trust 2005-OP2
RALI Series 2004-QS3 Trust					0.85%, 10/25/2035^(c)			3,679		3,646
5.00%, 03/25/2019		561		545	Soundview Home Loan Trust 2005-CTX1
RBSSP Resecuritization Trust 2009-7					0.95%, 11/25/2035^(c)			825		822
0.93%, 06/26/2037^(a),(c)		793		758	Structured Asset Investment Loan Trust 2005-
5.00%, 09/26/2036^(a),(c)		262		263	4
Sequoia Mortgage Trust 2013-4					1.19%, 05/25/2035^(c)			1,859		1,852
1.55%, 04/25/2043^(c)		10,764		10,649	Trafigura Securitisation Finance PLC 2014-1
Sequoia Mortgage Trust 2013-8					1.48%, 10/15/2018^(a),(c)			8,829		8,803
2.25%, 06/25/2043^(c)		7,650		7,558	Verizon Owner Trust 2016-1
Springleaf Mortgage Loan Trust 2013-2					1.42%, 01/20/2021^(a),(c)			8,500		8,510
1.78%, 12/25/2065^(a)		5,023		5,002				$		164,244
3.52%, 12/25/2065^(a),(c)		14,969		15,029	Pharmaceuticals - 1.67%
WaMu Mortgage Pass-Through Certificates					AbbVie Inc
Series 2003-S8 Trust					1.80%, 05/14/2018			4,798		4,813
5.00%, 09/25/2018		71		72	2.30%, 05/14/2021			4,800		4,800
		$		58,660	2.50%, 05/14/2020			6,664		6,748
Oil & Gas - 2.14%					Actavis Funding SCS
BP Capital Markets PLC					1.85%, 03/01/2017			9,664		9,687
4.75%, 03/10/2019		10,327		11,085	2.35%, 03/12/2018			11,995		12,113
Chevron Corp					Mead Johnson Nutrition Co
1.72%, 06/24/2018		12,125		12,208	3.00%, 11/15/2020			4,750		4,910
Phillips 66					Merck & Co Inc
2.95%, 05/01/2017		15,490		15,648	1.10%, 01/31/2018			8,827		8,840
Shell International Finance BV								$		51,911
2.13%, 05/11/2020		11,495		11,594	Pipelines - 2.32%
Total Capital International SA					Buckeye Partners LP
1.38%, 08/10/2018^(c)		5,430		5,443	2.65%, 11/15/2018			11,316		11,442
1.55%, 06/28/2017		10,327		10,351	Columbia Pipeline Group Inc
		$		66,329	2.45%, 06/01/2018			4,832		4,852
Other Asset Backed Securities - 5.29%					3.30%, 06/01/2020			4,832		4,990
Ameriquest Mortgage Securities Inc Asset-					Florida Gas Transmission Co LLC
Backed Pass-Through Ctfs Ser 2004-R11					7.90%, 05/15/2019^(a)			10,271		11,584
1.14%, 11/25/2034^(c)		128		128	Hiland Partners Holdings LLC / Hiland
Ameriquest Mortgage Securities Inc Asset-					Partners Finance Corp
Backed Pass-Through Ctfs Ser 2005-R1					5.50%, 05/15/2022^(a)			1,000		1,037
1.21%, 03/25/2035^(c)		922		922	TransCanada PipeLines Ltd
Citigroup Mortgage Loan Trust Inc					6.35%, 05/15/2067^(c)			19,000		15,200
0.96%, 07/25/2035^(c)		150		149	Williams Partners LP / ACMP Finance Corp
Drug Royalty II LP 2					4.88%, 05/15/2023			7,600		7,697
3.48%, 07/15/2023^(a),(c)		8,312		8,278	6.13%, 07/15/2022			14,495		15,050
Drug Royalty III LP 1								$		71,852
3.98%, 04/15/2027^(a),(c)		6,291		6,257	Real Estate - 0.32%
First Franklin Mortgage Loan Trust 2005-					Prologis LP
FF4					7.38%, 10/30/2019			8,653		9,989
1.18%, 05/25/2035^(c)		51		51
JP Morgan Mortgage Acquisition Corp 2005-					REITS- 1.60	%
OPT2					Alexandria Real Estate Equities Inc
0.82%, 12/25/2035^(c)		103		102	2.75%, 01/15/2020			11,990		12,128
MVW Owner Trust 2015-1					American Tower Trust I
2.52%, 12/20/2032^(a),(c)		11,996		12,041	1.55%, 03/15/2043^(a)			1,846		1,845


Schedule of Investments
Short-Term Income Fund
October 31, 2016



	Principal							Principal
BONDS (continued)	Amount (000's) Value (000's)				BONDS (continued)	Amount (000's) Value (000's)
REITS (continued)					Telecommunications - 3.12%
Digital Realty Trust LP					AT&T Inc
3.40%, 10/01/2020	$	6,700	$	6,949	2.45%, 06/30/2020		$	11,462	$	11,530
Healthcare Realty Trust Inc					2.80%, 02/17/2021			9,500		9,630
5.75%, 01/15/2021		6,997		7,891	3.60%, 02/17/2023			6,500		6,692
Kimco Realty Corp					Cisco Systems Inc
4.30%, 02/01/2018		6,664		6,844	2.20%, 02/28/2021			4,750		4,831
WEA Finance LLC / Westfield UK & Europe					4.95%, 02/15/2019			9,500		10,263
Finance PLC					GTP Acquisition Partners I LLC
1.75%, 09/15/2017^(a)		7,400		7,409	2.35%, 06/15/2045^(a)			8,400		8,367
Welltower Inc					Sprint Spectrum Co LLC / Sprint Spectrum Co
4.95%, 01/15/2021		5,960		6,562	II LLC / Sprint Spectrum Co III LLC
		$		49,628	3.36%, 03/20/2023^(a)			7,500		7,519
Retail - 0.31%					Verizon Communications Inc
Home Depot Inc/The					2.61%, 09/14/2018^(c)			4,664		4,789
2.00%, 04/01/2021		4,800		4,859	2.63%, 02/21/2020			13,800		14,073
McDonald's Corp					3.65%, 09/14/2018			8,250		8,559
2.75%, 12/09/2020		4,500		4,632	5.50%, 02/15/2018			4,250		4,466
		$		9,491	Vodafone Group PLC
Savings & Loans - 0.00%					1.63%, 03/20/2017			6,164		6,172
Washington Mutual Bank / Henderson NV								$		96,891
0.00%, 01/15/2013^(e),(f),(g)		1,200		—	Transportation - 0.29%
					Ryder System Inc
Software - 1.08%					2.45%, 11/15/2018			8,995		9,121
Microsoft Corp
1.10%, 08/08/2019		9,500		9,441	Trucking & Leasing - 0.27%
1.30%, 11/03/2018		4,750		4,768	Penske Truck Leasing Co Lp / PTL Finance
1.85%, 02/12/2020		4,662		4,716	Corp
Oracle Corp					3.75%, 05/11/2017^(a)			8,169		8,268
1.90%, 09/15/2021		4,800		4,781
2.25%, 10/08/2019		4,750		4,856	TOTAL BONDS			$		3,047,791
5.75%, 04/15/2018		4,664		4,970	U.S. GOVERNMENT & GOVERNMENT			Principal
		$		33,532	AGENCY OBLIGATIONS - 0.03%	Amount (000's) Value (000's)
Student Loan Asset Backed Securities - 3.92%					Federal Home Loan Mortgage Corporation (FHLMC) - 0.00%
KeyCorp Student Loan Trust 2000-A					2.66%, 11/01/2021^(c)	$		3	$	4
1.15%, 05/25/2029^(c)		2,407		2,319	2.77%, 09/01/2035^(c)			82		87
KeyCorp Student Loan Trust 2004-A					6.00%, 04/01/2017			2		2
1.19%, 10/28/2041^(c)		690		688	6.00%, 05/01/2017			5		5
KeyCorp Student Loan Trust 2006-A					7.00%, 12/01/2022			89		93
1.16%, 09/27/2035^(c)		27,088		26,814				$		191
SLC Private Student Loan Trust 2006-A					Federal National Mortgage Association (FNMA) - 0.03%
1.05%, 07/15/2036^(c)		21,405		21,354	2.45%, 12/01/2032^(c)			54		56
SLC Private Student Loan Trust 2010-B					2.55%, 11/01/2022^(c)			2		2
4.02%, 07/15/2042^(a),(c)		1,531		1,561	2.63%, 01/01/2035^(c)			98		104
SLM Private Credit Student Loan Trust 2002-					2.67%, 11/01/2032^(c)			42		45
A					2.68%, 10/01/2035^(c)			253		267
1.40%, 12/16/2030^(c)		8,890		8,682	2.68%, 02/01/2037^(c)			131		139
SLM Private Credit Student Loan Trust 2004-					2.81%, 07/01/2034^(c)			37		39
A					2.87%, 08/01/2034^(c)			54		57
1.25%, 06/15/2033^(c)		2,417		2,321	2.95%, 07/01/2034^(c)			147		155
SLM Private Credit Student Loan Trust 2004-					3.00%, 02/01/2035^(c)			24		25
B					4.23%, 11/01/2035^(c)			7		7
1.05%, 06/15/2021^(c)		2,700		2,695	5.60%, 04/01/2019^(c)			2		1
SLM Private Credit Student Loan Trust 2005-					7.50%, 10/01/2029			3		3
B					8.00%, 05/01/2027			2		2
1.03%, 03/15/2023^(c)		6,112		6,100	10.00%, 05/01/2022			1		1
1.12%, 12/15/2023^(c)		6,765		6,586				$		903
SLM Private Credit Student Loan Trust 2006-					Government National Mortgage Association (GNMA) - 0.00%
A					9.00%, 04/20/2025			1		1
1.04%, 12/15/2023^(c)		1,690		1,676	10.00%, 01/15/2019			9		9
SLM Private Education Loan Trust 2013-A								$		10
1.13%, 08/15/2022^(a),(c)		4,888		4,893
					TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY
1.77%, 05/17/2027^(a)		8,700		8,679
					OBLIGATIONS			$		1,104
SLM Private Education Loan Trust 2013-B					Total Investments			$		3,125,097
1.18%, 07/15/2022^(a),(c)		2,046		2,046
1.85%, 06/17/2030^(a),(c)		11,664		11,648	Other Assets and Liabilities - (0.71)%			$		(22,155	)
					TOTAL NET ASSETS - 100.00%			$		3,102,942
SLM Private Education Loan Trust 2014-A
1.13%, 07/15/2022^(a),(c)		2,339		2,342
SMB Private Education Loan Trust 2016-C					(a) Security exempt from registration under Rule 144A of the Securities Act of
1.07%, 11/15/2023^(a),(c),(f)		11,400		11,400
					1933. These securities may be resold in transactions exempt from
		$		121,804	registration, normally to qualified institutional buyers. At the end of the
					period, the value of these securities totaled $811,927 or 26.17% of net
					assets.


Schedule of Investments
SmallCap Fund
October 31, 2016



COMMON STOCKS - 98.77%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Automobile Parts & Equipment - 3.71%					Diversified Financial Services (continued)
Cooper Tire & Rubber Co	252,883	$	9,293		Houlihan Lokey Inc	71,920	$	1,753
Horizon Global Corp ^(a)	36,180		725		Moelis & Co	61,740		1,568
Tenneco Inc ^(a)	52,870		2,912		Piper Jaffray Cos ^(a)	24,169		1,367
Visteon Corp	108,370		7,652		Santander Consumer USA Holdings Inc ^(a)	247,160		3,015
		$	20,582				$	12,205
Banks - 10.01%					Electric - 2.85%
Cathay General Bancorp	128,570		3,851		Avista Corp	199,064		8,241
CenterState Banks Inc	107,820		2,014		Portland General Electric Co	173,510		7,572
Central Pacific Financial Corp	206,090		5,282				$	15,813
Chemical Financial Corp	37,490		1,610		Electrical Components & Equipment - 2.90%
FCB Financial Holdings Inc ^(a)	100,550		3,750		Advanced Energy Industries Inc ^(a)	147,597		7,040
First Busey Corp	41,230		953		EnerSys	97,930		6,378
First Merchants Corp	32,890		926		Insteel Industries Inc	99,400		2,674
First of Long Island Corp/The	30,044		960				$	16,092
Great Western Bancorp Inc	215,310		6,942		Electronics - 2.79%
Hanmi Financial Corp	69,180		1,729		II-VI Inc ^(a)	181,950		5,058
Heartland Financial USA Inc	27,090		1,014		Itron Inc ^(a)	54,400		2,932
IBERIABANK Corp	123,080		8,080		Vishay Intertechnology Inc	531,250		7,491
Kearny Financial Corp/MD	192,449		2,685				$	15,481
PacWest Bancorp	152,700		6,626		Engineering & Construction - 2.87%
TCF Financial Corp	280,820		4,016		Argan Inc	65,280		3,711
Towne Bank/Portsmouth VA	67,690		1,679		Dycom Industries Inc ^(a)	44,220		3,402
Union Bankshares Corp	69,270		1,935		EMCOR Group Inc	50,520		3,055
WesBanco Inc	43,790		1,441		MasTec Inc ^(a)	200,890		5,735
		$	55,493				$	15,903
Biotechnology - 2.07%					Entertainment - 2.03%
Acceleron Pharma Inc ^(a)	33,640		943		Isle of Capri Casinos Inc ^(a)	164,128		3,447
Aratana Therapeutics Inc ^(a)	132,198		1,071		Vail Resorts Inc	48,820		7,784
Bellicum Pharmaceuticals Inc ^(a)	21,900		363
							$	11,231
Bluebird Bio Inc ^(a)	4,225		202
					Environmental Control - 0.50%

Cambrex Corp(a)	53,340		2,150		AquaVenture Holdings Ltd ^(a)	62,170		1,320

Cytokinetics Inc - Warrants(a),(b),(c)	110,568		81		Energy Recovery Inc ^(a)	119,551		1,460
DNIB Unwind Inc - Warrants ^(a),(b),(c)	17,472		—
Epizyme Inc ^(a)	24,990		226				$	2,780
FibroGen Inc ^(a)	30,470		504		Food - 2.31%
Genocea Biosciences Inc ^(a)	76,470		263		Cal-Maine Foods Inc	71,553		2,766
Insmed Inc ^(a)	67,850		881		Dean Foods Co	331,420		6,052
					SUPERVALU Inc ^(a)	934,360		4,008
Intercept Pharmaceuticals Inc ^(a)	3,280		406
MacroGenics Inc ^(a)	39,150		927				$	12,826
NewLink Genetics Corp ^(a)	20,370		247		Gas - 1.27%
Seattle Genetics Inc ^(a)	16,180		837		Southwest Gas Corp	97,060		7,033
Spark Therapeutics Inc ^(a)	9,910		466
Ultragenyx Pharmaceutical Inc ^(a)	19,870		1,172		Healthcare - Products - 3.55%
					Cynosure Inc ^(a)	127,310		5,430
Versartis Inc ^(a)	66,440		734
					ICU Medical Inc ^(a)	65,060		9,063
		$	11,473		K2M Group Holdings Inc ^(a)	121,800		2,079
Building Materials - 2.62%					Nevro Corp ^(a)	26,900		2,472
Forterra Inc ^(a)	123,760		2,129
					STAAR Surgical Co ^(a)	76,340		645
NCI Building Systems Inc ^(a)	221,188		3,185
							$	19,689
Universal Forest Products Inc	46,980		4,040
US Concrete Inc ^(a)	103,452		5,162		Healthcare - Services - 1.50%
					HealthSouth Corp	186,120		7,473
		$	14,516		Natera Inc ^(a)	33,260		282
Chemicals - 0.71%					Teladoc Inc ^(a)	32,740		532
Cabot Corp	75,820		3,953
							$	8,287
					Home Builders - 0.92%
Commercial Services - 4.69%					Installed Building Products Inc ^(a)	153,911		5,087
ABM Industries Inc	138,080		5,396
AMN Healthcare Services Inc ^(a)	70,060		2,298
					Insurance - 4.04%
Insperity Inc	78,660		5,915
Live Nation Entertainment Inc ^(a)	106,745		2,954		American Financial Group Inc/OH	94,960		7,075
Navigant Consulting Inc ^(a)	134,349		3,144		Argo Group International Holdings Ltd	64,159		3,567
PAREXEL International Corp ^(a)	108,360		6,313		Employers Holdings Inc	97,680		3,062
					James River Group Holdings Ltd	39,050		1,470
		$	26,020		MGIC Investment Corp ^(a)	458,233		3,739
Computers - 2.81%					Primerica Inc	63,470		3,472
CACI International Inc ^(a)	71,420		6,988
ExlService Holdings Inc ^(a)	100,600		4,429				$	22,385
SecureWorks Corp ^(a)	96,000		1,132		Internet - 1.89%
Sykes Enterprises Inc ^(a)	112,960		3,021		CDW Corp/DE	109,007		4,895
					GoDaddy Inc ^(a)	155,200		5,555
		$	15,570
							$	10,450
Distribution & Wholesale - 0.57%
SiteOne Landscape Supply Inc ^(a)	101,180		3,155		Investment Companies - 0.03%
					THL Credit Inc	16,428		151

Diversified Financial Services - 2.20%
Evercore Partners Inc - Class A	83,750		4,502


Schedule of Investments
SmallCap Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)		Shares Held	Value (000's)
Leisure Products & Services - 0.78%					Savings & Loans (continued)
Planet Fitness Inc ^(a)	205,100	$	4,348		Flagstar Bancorp Inc ^(a)		86,680	$	2,378
					Oritani Financial Corp		83,170		1,302
Machinery - Construction & Mining - 0.76%					Pacific Premier Bancorp Inc ^(a)		56,730		1,466
Astec Industries Inc	76,580		4,239		Provident Financial Services Inc		183,010		4,152
								$	10,265
Machinery - Diversified - 0.81%					Semiconductors - 1.23%
Manitowoc Foodservice Inc ^(a)	296,547		4,481		Entegris Inc ^(a)		252,880		4,021
					Qorvo Inc ^(a)		50,245		2,796
Metal Fabrication & Hardware - 0.82%								$	6,817
Atkore International Group Inc ^(a)	158,033		2,971
					Software - 6.70%
Global Brass & Copper Holdings Inc	53,976		1,549		Apptio Inc ^(a)		46,610		920
		$	4,520		Aspen Technology Inc ^(a)		189,240		9,318
Mining - 0.40%					Atlassian Corp PLC ^(a)		93,420		2,509
US Silica Holdings Inc	47,890		2,212		Black Knight Financial Services Inc ^(a)		90,200		3,550
					Blackbaud Inc		106,990		6,569
Miscellaneous Manufacturers - 1.91%					Blackline Inc ^(a)		12,310		280
AO Smith Corp	85,640		3,868		Coupa Software Inc ^(a)		21,453		536
Trinseo SA	128,560		6,743		Manhattan Associates Inc ^(a)		84,700		4,289
		$	10,611		SYNNEX Corp		89,600		9,188
Oil & Gas - 3.45%								$	37,159
Callon Petroleum Co ^(a)	199,890		2,597		Telecommunications - 3.38%
Carrizo Oil & Gas Inc ^(a)	63,370		2,144		Gigamon Inc ^(a)		73,880		4,086
Murphy USA Inc ^(a)	91,050		6,262		NETGEAR Inc ^(a)		94,360		4,765
PDC Energy Inc ^(a)	32,770		2,010		Plantronics Inc		133,070		6,881
Rice Energy Inc ^(a)	107,490		2,374		Quantenna Communications Inc ^(a)		64,000		959
RSP Permian Inc ^(a)	66,870		2,414		West Corp		103,160		2,034
Western Refining Inc	46,680		1,347					$	18,725
		$	19,148		TOTAL COMMON STOCKS			$	547,580
Oil & Gas Services - 0.55%					INVESTMENT COMPANIES - 1.45%		Shares Held	Value (000's)
Mammoth Energy Services Inc ^(a)	162,370		2,192
					Money Market Funds - 1.45%
Pioneer Energy Services Corp ^(a)	239,520		850
					Goldman Sachs Financial Square Funds -		8,053,545		8,054
		$	3,042		Government Fund
Packaging & Containers - 0.70%
Graphic Packaging Holding Co	310,580		3,882		TOTAL INVESTMENT COMPANIES			$	8,054
					Total Investments			$	555,634
Pharmaceuticals - 4.47%					Other Assets and Liabilities - (0.22)%			$	(1,232	)
Array BioPharma Inc ^(a)	147,740		842
					TOTAL NET ASSETS - 100.00%			$	554,402
Concert Pharmaceuticals Inc ^(a)	37,570		290
DexCom Inc ^(a)	20,200		1,580
Nektar Therapeutics ^(a)	98,850		1,226		(a)	Non-Income Producing Security
Neurocrine Biosciences Inc ^(a)	15,530		680		(b)	Security is Illiquid. At the end of the period, the value of these securities
Portola Pharmaceuticals Inc ^(a)	16,960		308			totaled $81 or 0.01% of net assets.
PRA Health Sciences Inc ^(a)	165,990		8,834		(c)	Fair value of these investments is determined in good faith by the Manager
Prestige Brands Holdings Inc ^(a)	168,040		7,609			under procedures established and periodically reviewed by the Board of
ProQR Therapeutics NV ^(a)	23,625		123			Directors. At the end of the period, the fair value of these securities totaled
Proteon Therapeutics Inc ^(a)	66,920		666			$81 or 0.01% of net assets.
Revance Therapeutics Inc ^(a)	25,963		346
SCYNEXIS Inc ^(a)	73,560		236
TESARO Inc ^(a)	8,960		1,083
Vanda Pharmaceuticals Inc ^(a)	64,225		954			Portfolio Summary (unaudited)
		$	24,777		Sector				Percent
REITS - 8.58%					Financial				26.71	%
Armada Hoffler Properties Inc	228,640		3,070		Consumer, Non-cyclical				18.59	%
CYS Investments Inc	467,980		4,034		Industrial				16.68	%
First Industrial Realty Trust Inc	293,070		7,740		Consumer, Cyclical				11.55	%
Highwoods Properties Inc	133,450		6,623		Technology				10.74	%
Kite Realty Group Trust	192,690		4,804		Communications				5.27	%
Mack-Cali Realty Corp	289,970		7,446		Utilities				4.12	%
MedEquities Realty Trust Inc ^(a)	287,038		3,327		Energy				4.00	%
Monmouth Real Estate Investment Corp	104,490		1,428		Investment Companies				1.45	%
QTS Realty Trust Inc	88,700		4,077		Basic Materials				1.11	%
Ramco-Gershenson Properties Trust	289,550		5,021		Other Assets and Liabilities				(0.22	)%
		$	47,570		TOTAL NET ASSETS				100.00	%
Retail - 3.54%
At Home Group Inc ^(a)	185,670		2,079
Big 5 Sporting Goods Corp	64,350		997
Caleres Inc	270,840		6,774
GMS Inc ^(a)	107,388		2,232
Michaels Cos Inc/The ^(a)	186,960		4,347
Tile Shop Holdings Inc ^(a)	187,620		3,180
		$	19,609
Savings & Loans - 1.85%
Banc of California Inc	72,710		967


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS - 93.51%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.00%					Banks (continued)
MDC Partners Inc	2,891	$	24		CU Bancorp ^(a)	602	$	14
					Customers Bancorp Inc ^(a)	53,719		1,454
Aerospace & Defense - 0.85%					Eagle Bancorp Inc ^(a)	3,325		163
Aerojet Rocketdyne Holdings Inc ^(a)	4,080		72		FCB Financial Holdings Inc ^(a)	73,690		2,749
Aerovironment Inc ^(a)	730		18		First Connecticut Bancorp Inc/Farmington CT	827		15
Astronics Corp ^(a)	4,573		169		First Financial Bankshares Inc	5,486		199
Astronics Corp - Class B ^(a)	685		25		First Foundation Inc ^(a)	755		19
Curtiss-Wright Corp	6,439		577		Franklin Financial Network Inc ^(a)	588		19
HEICO Corp	137,574		9,294		Heritage Commerce Corp	974		11
Kaman Corp	1,402		61		Home BancShares Inc/AR	16,588		357
KLX Inc ^(a)	43,160		1,486		Live Oak Bancshares Inc	78,945		1,259
Moog Inc ^(a)	1,441		84		National Bank Holdings Corp	4,498		109
National Presto Industries Inc	169		15		Opus Bank	125,147		2,509
Teledyne Technologies Inc ^(a)	2,238		241		Park Sterling Corp	3,769		32
		$	12,042		Pinnacle Financial Partners Inc	1,475		76
Agriculture - 0.01%					PrivateBancorp Inc	118,520		5,362
Alico Inc	261		7		Prosperity Bancshares Inc	93,951		5,211
					Provident Bancorp Inc ^(a)	345		6
Limoneira Co	2,101		41
Turning Point Brands Inc ^(a)	951		12		ServisFirst Bancshares Inc	3,188		173
					Signature Bank/New York NY ^(a)	40,166		4,842
Vector Group Ltd	5,520		116
					SVB Financial Group ^(a)	55,227		6,753
		$	176
					Texas Capital Bancshares Inc ^(a)	431		26
Airlines - 0.35%
Allegiant Travel Co	1,814		250		Union Bankshares Inc/Morrisville VT	615		20
Hawaiian Holdings Inc ^(a)	10,629		479		Veritex Holdings Inc ^(a)	696		12
Spirit Airlines Inc ^(a)	84,522		4,051		Walker & Dunlop Inc ^(a)	3,163		76
Virgin America Inc ^(a)	2,482		135		Western Alliance Bancorp ^(a)	177,235		6,621
		$	4,915		Western New England Bancorp Inc	729		6
Apparel - 0.46%							$	48,346
Columbia Sportswear Co	3,710		210		Beverages - 0.05%
Deckers Outdoor Corp ^(a)	1,346		70		Boston Beer Co Inc/The ^(a)	1,779		276
Oxford Industries Inc	3,690		232		Coca-Cola Bottling Co Consolidated	860		122
Sequential Brands Group Inc ^(a)	272,839		1,965		Craft Brew Alliance Inc ^(a)	860		14
Steven Madden Ltd ^(a)	114,307		3,818		Farmer Brothers Co ^(a)	1,467		48
Superior Uniform Group Inc	1,742		31		MGP Ingredients Inc	2,251		79
					National Beverage Corp ^(a)	2,168		102
Weyco Group Inc	326		8		Primo Water Corp ^(a)	4,073		53
Wolverine World Wide Inc	5,302		113
		$	6,447				$	694
Automobile Manufacturers - 0.01%					Biotechnology - 4.82%
Blue Bird Corp ^(a)	736		11		Acceleron Pharma Inc ^(a)	82,091		2,301
Navistar International Corp ^(a)	417		9		Achillion Pharmaceuticals Inc ^(a)	21,507		135
Wabash National Corp ^(a)	7,018		79		Acorda Therapeutics Inc ^(a)	1,067		19
Workhorse Group Inc ^(a)	2,168		14		Aduro Biotech Inc ^(a)	6,377		69
					Advaxis Inc ^(a)	6,407		52
		$	113		Agenus Inc ^(a)	10,721		43
Automobile Parts & Equipment - 0.16%					Alder Biopharmaceuticals Inc ^(a)	308,592		7,483
American Axle & Manufacturing Holdings Inc	17,772		318		AMAG Pharmaceuticals Inc ^(a)	1,884		48
(a)
					Anavex Life Sciences Corp ^(a)	5,745		16
Cooper-Standard Holding Inc ^(a)	3,158		288
					ANI Pharmaceuticals Inc ^(a)	1,529		91
Dorman Products Inc ^(a)	5,728		368
					Applied Genetic Technologies Corp/DE ^(a)	44,595		319
Douglas Dynamics Inc	3,704		119		Aptevo Therapeutics Inc ^(a)	2,889		6
Gentherm Inc ^(a)	5,040		142
					Aratana Therapeutics Inc ^(a)	6,251		51
Horizon Global Corp ^(a)	3,681		74
					Ardelyx Inc ^(a)	909		11
Metaldyne Performance Group Inc	2,229		34		Arena Pharmaceuticals Inc ^(a)	42,345		63
Miller Industries Inc/TN	458		10		Argos Therapeutics Inc ^(a)	2,575		11
Motorcar Parts of America Inc ^(a)	3,158		83
					ARIAD Pharmaceuticals Inc ^(a)	317,199		2,766
Standard Motor Products Inc	3,734		183		Arrowhead Pharmaceuticals Inc ^(a)	9,937		58
Supreme Industries Inc	1,792		22		Asterias Biotherapeutics Inc ^(a)	3,991		13
Tenneco Inc ^(a)	11,377		627
					Asterias Biotherapeutics Inc - Warrants ^(a)	354		—
Unique Fabricating Inc	1,716		21		Atara Biotherapeutics Inc ^(a)	237		3
		$	2,289		Athersys Inc ^(a)	12,595		23
Banks - 3.43%					Audentes Therapeutics Inc ^(a)	111,092		1,776
Allegiance Bancshares Inc ^(a)	394		10
					Bellicum Pharmaceuticals Inc ^(a)	2,462		41
Ameris Bancorp	3,418		124		BioCryst Pharmaceuticals Inc ^(a)	10,765		44
Atlantic Capital Bancshares Inc ^(a)	751		11
					BioTime Inc ^(a)	12,430		40
Bank of the Ozarks Inc	142,937		5,283		Bluebird Bio Inc ^(a)	63,022		3,009
Bankwell Financial Group Inc	393		10		Blueprint Medicines Corp ^(a)	3,522		106
Blue Hills Bancorp Inc	440		7		Cambrex Corp ^(a)	4,404		178
BNC Bancorp	487		12		Cellular Biomedicine Group Inc ^(a)	1,487		18
Cardinal Financial Corp	493		13		Charles River Laboratories International Inc	129,405		9,819
Cass Information Systems Inc	1,320		71		(a)
Chemical Financial Corp	5,366		230		ChemoCentryx Inc ^(a)	3,754		22
CoBiz Financial Inc	846		11		ChromaDex Corp ^(a)	6,893		19
ConnectOne Bancorp Inc	242,702		4,454		Coherus Biosciences Inc ^(a)	89,356		2,444
County Bancorp Inc	844		17		Curis Inc ^(a)	19,947		52


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Biotechnology (continued)					Biotechnology (continued)
Cytokinetics Inc ^(a)	5,958	$	58		XBiotech Inc ^(a)	3,077	$		41
CytomX Therapeutics Inc ^(a)	3,594		41		ZIOPHARM Oncology Inc ^(a)	21,806			124
CytRx Corp ^(a)	11,197		5				$		68,027
Dermira Inc ^(a)	3,342		105		Building Materials - 1.70%
Dimension Therapeutics Inc ^(a)	864		4		AAON Inc	5,596			168
Dynavax Technologies Corp ^(a)	6,972		65		Apogee Enterprises Inc	120,001			4,890
Edge Therapeutics Inc ^(a)	1,239		13		Armstrong Flooring Inc ^(a)	391			6
Editas Medicine Inc ^(a)	1,208		17		Boise Cascade Co ^(a)	4,569			88
Eiger BioPharmaceuticals Inc ^(a)	609		7		Builders FirstSource Inc ^(a)	11,386			110
Emergent BioSolutions Inc ^(a)	5,888		157		Caesarstone Ltd ^(a)	4,910			174
Endocyte Inc ^(a)	2,252		6		Continental Building Products Inc ^(a)	6,657			136
Enzo Biochem Inc ^(a)	8,591		52		Drew Industries Inc	4,999			448
Epizyme Inc ^(a)	5,050		46		Gibraltar Industries Inc ^(a)	5,272			205
Exact Sciences Corp ^(a)	19,144		298		Griffon Corp	4,805			80
Exelixis Inc ^(a)	189,019		2,002		Headwaters Inc ^(a)	167,761			2,752
FibroGen Inc ^(a)	9,490		157		Louisiana-Pacific Corp ^(a)	26,095			479
Five Prime Therapeutics Inc ^(a)	1,105		54		LSI Industries Inc	1,117			10
Fortress Biotech Inc ^(a)	5,998		14		Masonite International Corp ^(a)	54,890			3,123
Foundation Medicine Inc ^(a)	2,369		54		NCI Building Systems Inc ^(a)	5,239			75
Galena Biopharma Inc ^(a)	31,755		7		Patrick Industries Inc ^(a)	3,471			199
Geron Corp ^(a)	26,081		48		PGT Inc ^(a)	8,741			86
GlycoMimetics Inc ^(a)	1,802		11		Ply Gem Holdings Inc ^(a)	4,387			60
Halozyme Therapeutics Inc ^(a)	19,698		170		Quanex Building Products Corp	790			13
Idera Pharmaceuticals Inc ^(a)	14,522		23		Simpson Manufacturing Co Inc	8,703			372
ImmunoGen Inc ^(a)	15,101		28		Summit Materials Inc ^(a)	333,914			6,257
Immunomedics Inc ^(a)	14,313		33		Trex Co Inc ^(a)	70,523			3,795
Incyte Corp ^(a)	14,501		1,261		Universal Forest Products Inc	3,704			318
Infinity Pharmaceuticals Inc ^(a)	8,458		10		US Concrete Inc ^(a)	2,686			134
Innoviva Inc ^(a)	19,231		198				$		23,978
Inovio Pharmaceuticals Inc ^(a)	11,885		77
					Chemicals - 0.83%
Insmed Inc ^(a)	214,875		2,789
					Aceto Corp	5,026			92
Intellia Therapeutics Inc ^(a)	1,229		17
					Balchem Corp	4,316			328
Intercept Pharmaceuticals Inc ^(a)	11,313		1,400		Chemours Co/The	31,796			522
Intrexon Corp ^(a)	26,066		680		Chemtura Corp ^(a)	4,530			149
Karyopharm Therapeutics Inc ^(a)	889		6		Codexis Inc ^(a)	6,701			34
Kite Pharma Inc ^(a)	7,065		313		Ferro Corp ^(a)	11,555			150
Lexicon Pharmaceuticals Inc ^(a)	7,563		112		GCP Applied Technologies Inc ^(a)	8,258			213
Ligand Pharmaceuticals Inc ^(a)	3,435		329		Hawkins Inc	484			20
Lion Biotechnologies Inc ^(a)	9,504		59
					HB Fuller Co	6,902			290
Loxo Oncology Inc ^(a)	2,347		49		Ingevity Corp ^(a)	4,716			195
MacroGenics Inc ^(a)	81,209		1,923		Innophos Holdings Inc	3,239			149
Medicines Co/The ^(a)	96,763		3,189
					KMG Chemicals Inc	1,000			27
Merrimack Pharmaceuticals Inc ^(a)	13,294		69		Koppers Holdings Inc ^(a)	3,085			101
Momenta Pharmaceuticals Inc ^(a)	2,744		31		Landec Corp ^(a)	1,363			18
Myriad Genetics Inc ^(a)	12,189		240
					Minerals Technologies Inc	4,348			292
NeoGenomics Inc ^(a)	139,984		1,128		OMNOVA Solutions Inc ^(a)	5,553			42
NewLink Genetics Corp ^(a)	2,905		35		PolyOne Corp	276,013			8,068
Novavax Inc ^(a)	48,096		73
					Quaker Chemical Corp	2,411			259
OncoMed Pharmaceuticals Inc ^(a)	3,794		34
					Rayonier Advanced Materials Inc	5,205			67
Organovo Holdings Inc ^(a)	15,151		38		Sensient Technologies Corp	6,103			455
Otonomy Inc ^(a)	115,105		1,738
					Stepan Co	1,368			97
OvaScience Inc ^(a)	745		4		Univar Inc ^(a)	5,841			130
Pacific Biosciences of California Inc ^(a)	15,118		129
							$		11,698
Paratek Pharmaceuticals Inc ^(a)	3,497		37
					Commercial Services - 6.70%
(a)
Pfenex Inc	3,008		24		Advisory Board Co/The ^(a)	124,027			4,936
(a)
PharmAthene Inc	10,318		28		Alarm.com Holdings Inc ^(a)	92,742			2,706
(a)
Prothena Corp PLC	66,973		3,203		Albany Molecular Research Inc ^(a)	104,074			1,622
(a)
Puma Biotechnology Inc	4,453		171		AMN Healthcare Services Inc ^(a)	11,060			363
Rigel Pharmaceuticals Inc ^(a)	13,209		34
					Barrett Business Services Inc	1,364			61
(a)
Sage Therapeutics Inc	71,363		3,107		Bright Horizons Family Solutions Inc ^(a)	319,803			21,397
Sangamo BioSciences Inc ^(a)	12,146		43
					Brink's Co/The	9,592			379
Selecta Biosciences Inc ^(a)	729		13
					Capella Education Co	2,026			148
(a)
Spark Therapeutics Inc	3,473		163		Cardtronics PLC ^(a)	10,003			500
(a)
Spectrum Pharmaceuticals Inc	3,460		12		Care.com Inc ^(a)	3,619			33
Stemline Therapeutics Inc ^(a)	438		5
					Carriage Services Inc	2,685			63
Syndax Pharmaceuticals Inc ^(a)	394		5
					CEB Inc	66,859			3,253
(a)
Synthetic Biologics Inc	13,319		19		Cimpress NV ^(a)	77,170			6,424
Theravance Biopharma Inc ^(a)	5,028		126
					Collectors Universe Inc	1,743			33
(a)
Tobira Therapeutics Inc	1,559		66		CoreLogic Inc/United States ^(a)	115,098			4,899
(a)
Tokai Pharmaceuticals Inc	1,744		2		CorVel Corp ^(a)	1,974			68
(a)
Trovagene Inc	4,551		16		CoStar Group Inc ^(a)	35,317			6,608
(a)
Ultragenyx Pharmaceutical Inc	173,018		10,206		Cotiviti Holdings Inc ^(a)	101,632			3,138
Veracyte Inc ^(a)	3,348		24
					CPI Card Group Inc	2,579			14
Versartis Inc ^(a)	311		3


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016




COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Commercial Services (continued)					Computers (continued)
Cross Country Healthcare Inc ^(a)	6,402	$	71		Qualys Inc ^(a)	3,791	$	141
Deluxe Corp	9,652		591		Radisys Corp ^(a)	6,611		28
EVERTEC Inc	14,671		222		Science Applications International Corp	8,963		618
Forrester Research Inc	1,981		74		Silicon Graphics International Corp ^(a)	6,243		48
Franklin Covey Co ^(a)	1,836		34		Silver Spring Networks Inc ^(a)	6,617		93
FTI Consulting Inc ^(a)	1,855		72		Stratasys Ltd ^(a)	3,097		59
Global Payments Inc	50,917		3,692		Super Micro Computer Inc ^(a)	4,182		99
Grand Canyon Education Inc ^(a)	6,198		270		Syntel Inc	7,481		150
Great Lakes Dredge & Dock Corp ^(a)	1,497		5		TeleTech Holdings Inc	3,187		90
Green Dot Corp ^(a)	4,100		91		Unisys Corp ^(a)	6,528		68
Hackett Group Inc/The	4,652		75		USA Technologies Inc ^(a)	6,131		28
Healthcare Services Group Inc	206,927		7,650		Varonis Systems Inc ^(a)	62,918		1,796
HealthEquity Inc ^(a)	9,659		321		Virtusa Corp ^(a)	4,995		95
HMS Holdings Corp ^(a)	18,838		397		Vocera Communications Inc ^(a)	3,621		67
Huron Consulting Group Inc ^(a)	1,397		78				$	43,783

INC Research Holdings Inc ^(a)	9,249		423		Consumer Products - 0.06%
Information Services Group Inc ^(a)	7,241		29		Central Garden & Pet Co ^(a)	370		9
Insperity Inc	3,574		269		Central Garden & Pet Co - A Shares ^(a)	891		21
Kforce Inc	4,721		82		Helen of Troy Ltd ^(a)	5,597		456
Korn/Ferry International	4,593		94		WD-40 Co	2,945		314

Landauer Inc	1,922		84				$	800
LendingTree Inc ^(a)	45,051		3,597
					Cosmetics & Personal Care - 0.21%
Liberty Tax Inc	1,438		17		Avon Products Inc	17,109		112
LifeLock Inc ^(a)	11,644		187		elf Beauty Inc ^(a)	104,806		2,710
Matthews International Corp	55,502		3,325		Inter Parfums Inc	1,575		51
Medifast Inc	1,978		81		Revlon Inc ^(a)	666		23
Monro Muffler Brake Inc	4,307		237				$	2,896

National Research Corp	1,858		29		Distribution & Wholesale - 1.50%
(a)
Neff Corp	1,286		12		Beacon Roofing Supply Inc ^(a)	11,945		502
Nutrisystem Inc	87,373		2,770		Core-Mark Holding Co Inc	115,087		4,068
(a)
On Assignment Inc	7,009		241		G-III Apparel Group Ltd ^(a)	4,645		121
PAREXEL International Corp ^(a)	10,617		619
					H&E Equipment Services Inc	302,158		4,216
Patriot National Inc ^(a)	2,051		13
					Pool Corp	61,840		5,725
(a)
Paylocity Holding Corp	173,661		7,553		SiteOne Landscape Supply Inc ^(a)	206,487		6,438
PFSweb Inc ^(a)	2,736		20
					Triton International Ltd/Bermuda	1,539		19
Quad/Graphics Inc	3,055		73		Veritiv Corp ^(a)	194		10
ServiceSource International Inc ^(a)	7,730		37
							$	21,099
Sotheby's	6,464		232
SP Plus Corp ^(a)	3,158		80		Diversified Financial Services - 1.67%
					Altisource Portfolio Solutions SA ^(a)	2,132		55
Strayer Education Inc ^(a)	1,007		59
Team Health Holdings Inc ^(a)	9,300		398		BGC Partners Inc	45,591		392
					Blackhawk Network Holdings Inc ^(a)	7,549		260
Team Inc ^(a)	22,203		683
					Cohen & Steers Inc	5,261		196
Travelport Worldwide Ltd	11,888		168
TriNet Group Inc ^(a)	5,724		107		Diamond Hill Investment Group Inc	560		102
					Ellie Mae Inc ^(a)	66,970		7,092
TrueBlue Inc ^(a)	2,553		45
Vectrus Inc ^(a)	653		11		Evercore Partners Inc - Class A	7,931		426
					Financial Engines Inc	7,353		203
Viad Corp	2,245		93
Weight Watchers International Inc ^(a)	5,115		53		GAIN Capital Holdings Inc	1,285		6
WEX Inc ^(a)	22,121		2,413		GAMCO Investors Inc	306		9
					Greenhill & Co Inc	3,679		86
		$	94,422		Hennessy Advisors Inc	641		19
Computers - 3.11%					Houlihan Lokey Inc	154,653		3,769
3D Systems Corp ^(a)	14,716		204
					Investment Technology Group Inc	1,045		16
(a)
Agilysys Inc	496		5		LendingClub Corp ^(a)	19,641		97
Barracuda Networks Inc ^(a)	4,375		102
					Medley Management Inc	1,161		10
Carbonite Inc ^(a)	3,916		67
					Moelis & Co	3,482		88
Convergys Corp	11,085		324		Nationstar Mortgage Holdings Inc ^(a)	2,856		43
Cray Inc ^(a)	9,610		200
					OM Asset Management PLC	5,132		72
Datalink Corp ^(a)	1,233		12
					Pzena Investment Management Inc	2,594		19
Diebold Inc	3,124		68		Regional Management Corp ^(a)	357		8
Electronics For Imaging Inc ^(a)	88,429		3,761
					Silvercrest Asset Management Group Inc	1,616		19
(a)
EPAM Systems Inc	157,694		10,150		Stifel Financial Corp ^(a)	114,244		4,472
ExlService Holdings Inc ^(a)	7,549		332
					Virtu Financial Inc	104,805		1,341
ExOne Co/The ^(a)	378		4
					Waddell & Reed Financial Inc	1,030		16
(a)
Fleetmatics Group PLC	5,373		322		WageWorks Inc ^(a)	75,803		4,468
Genpact Ltd ^(a)	369,407		8,493
					Westwood Holdings Group Inc	1,479		76
Globant SA ^(a)	6,324		275
					WisdomTree Investments Inc	16,013		137
KEYW Holding Corp/The ^(a)	28,299		297
Lumentum Holdings Inc ^(a)	99,700		3,350				$	23,497
					Electric - 0.03%
MAXIMUS Inc	145,071		7,552
Mercury Systems Inc ^(a)	101,413		2,817		MGE Energy Inc	3,368		197
Mitek Systems Inc ^(a)	6,391		43		Ormat Technologies Inc	3,836		185
					Spark Energy Inc	1,053		25
MTS Systems Corp	2,854		136
Nutanix Inc ^(a)	72,432		1,775				$	407
Pure Storage Inc ^(a)	9,261		114


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Electrical Components & Equipment - 0.86%					Environmental Control (continued)
Advanced Energy Industries Inc ^(a)	152,541	$	7,277		Aqua Metals Inc ^(a)	2,038	$	18
Belden Inc	8,563		555		Energy Recovery Inc ^(a)	6,639		81
Energous Corp ^(a)	2,754		37		Heritage-Crystal Clean Inc ^(a)	1,740		23
EnerSys	3,178		207		MSA Safety Inc	2,932		171
Generac Holdings Inc ^(a)	73,539		2,801		Tetra Tech Inc	28,601		1,100
General Cable Corp	8,329		117		US Ecology Inc	3,001		127
Insteel Industries Inc	3,423		92		Waste Connections Inc	262,425		19,737
Littelfuse Inc	4,405		614				$	23,653
Novanta Inc ^(a)	2,047		36		Food - 0.90%
Universal Display Corp ^(a)	5,686		294		Amplify Snack Brands Inc ^(a)	5,368		78
Vicor Corp ^(a)	2,782		35		B&G Foods Inc	13,051		553
		$	12,065		Calavo Growers Inc	3,400		201
Electronics - 2.10%					Cal-Maine Foods Inc	3,258		126
Allied Motion Technologies Inc	1,338		26		Chefs' Warehouse Inc/The ^(a)	279,478		3,186
Applied Optoelectronics Inc ^(a)	86,700		1,667		Darling Ingredients Inc ^(a)	11,386		155
Badger Meter Inc	6,691		215		Dean Foods Co	11,640		213
Brady Corp	7,938		263		Fairway Group Holdings Corp ^(a),(b)	4,759		—
Coherent Inc ^(a)	4,966		517		Fresh Del Monte Produce Inc	1,338		81
ESCO Technologies Inc	176,134		7,847		Inventure Foods Inc ^(a)	3,421		29
FARO Technologies Inc ^(a)	972		33		J&J Snack Foods Corp	2,067		252
Fluidigm Corp ^(a)	5,808		27		John B Sanfilippo & Son Inc	498		25
II-VI Inc ^(a)	5,966		166		Lancaster Colony Corp	2,586		338
IMAX Corp ^(a)	286,774		8,675		Lifeway Foods Inc ^(a)	952		17
Itron Inc ^(a)	4,593		248		Performance Food Group Co ^(a)	5,087		122
Mesa Laboratories Inc	566		71		Smart & Final Stores Inc ^(a)	3,249		39
Methode Electronics Inc	8,126		253		Tootsie Roll Industries Inc	3,175		113
NVE Corp	528		30		TreeHouse Foods Inc ^(a)	81,736		7,150
Rogers Corp ^(a)	2,160		118				$	12,678
Sparton Corp ^(a)	401		10		Food Service - 0.30%
Stoneridge Inc ^(a)	5,351		79		AdvancePierre Foods Holdings Inc	149,918		4,192
TASER International Inc ^(a)	7,201		161
Watts Water Technologies Inc	3,557		213		Forest Products & Paper - 0.04%
Woodward Inc	152,715		9,007		Clearwater Paper Corp ^(a)	2,356		125
ZAGG Inc ^(a)	1,196		8		Deltic Timber Corp ^(c)	1,900		107
		$	29,634		Neenah Paper Inc	3,843		307
Energy - Alternate Sources - 0.01%					Orchids Paper Products Co	1,774		46
Pattern Energy Group Inc	7,371		165		Schweitzer-Mauduit International Inc	789		29
Renewable Energy Group Inc ^(a)	636		5				$	614
		$	170		Gas - 0.01%
Engineering & Construction - 1.10%					Chesapeake Utilities Corp	231		15
Argan Inc	2,613		149		New Jersey Resources Corp	942		32
Comfort Systems USA Inc	8,409		243		Southwest Gas Corp	1,315		95
Dycom Industries Inc ^(a)	140,544		10,812		WGL Holdings Inc	350		22
EMCOR Group Inc	2,827		171				$	164
Exponent Inc	3,530		202		Hand & Machine Tools - 0.45%
Granite Construction Inc	4,119		202		Franklin Electric Co Inc	5,960		217
Hill International Inc ^(a)	3,755		14		Lincoln Electric Holdings Inc	92,945		6,119
IES Holdings Inc ^(a)	1,723		26		Milacron Holdings Corp ^(a)	2,317		34
MasTec Inc ^(a)	13,783		393				$	6,370
Mistras Group Inc ^(a)	3,327		70
					Healthcare - Products - 4.63%
NV5 Global Inc ^(a)	1,167		33
					Abaxis Inc	3,040		145
Orion Group Holdings Inc ^(a)	1,392		11		Accuray Inc ^(a)	15,502		76
TopBuild Corp ^(a)	2,778		84		Align Technology Inc ^(a)	57,027		4,900
Tutor Perini Corp ^(a)	159,949		3,047
					Analogic Corp	1,033		85
		$	15,457		AtriCure Inc ^(a)	96,625		1,762
Entertainment - 1.41%					Atrion Corp	263		115
AMC Entertainment Holdings Inc	456		14		Avinger Inc ^(a)	3,616		13
Churchill Downs Inc	27,802		3,781		AxoGen Inc ^(a)	5,322		47
Eldorado Resorts Inc ^(a)	5,172		63		BioTelemetry Inc ^(a)	5,374		95
Golden Entertainment Inc	865		10		Cantel Medical Corp	30,674		2,185
Isle of Capri Casinos Inc ^(a)	4,733		99		Cardiovascular Systems Inc ^(a)	6,177		145
Marriott Vacations Worldwide Corp	188		12		Cepheid ^(a)	13,121		694
National CineMedia Inc	426,619		5,917		Cerus Corp ^(a)	16,683		80
Penn National Gaming Inc ^(a)	176,080		2,277		CryoLife Inc	4,278		73
Pinnacle Entertainment Inc ^(a)	1,195		14		Cutera Inc ^(a)	2,999		39
Reading International Inc ^(a)	1,096		15		Cynosure Inc ^(a)	5,746		245
Red Rock Resorts Inc	5,694		125		Endologix Inc ^(a)	10,988		115
Scientific Games Corp ^(a)	9,853		122		Entellus Medical Inc ^(a)	1,788		37
SeaWorld Entertainment Inc	9,082		127		GenMark Diagnostics Inc ^(a)	7,691		82
Vail Resorts Inc	45,860		7,312		Genomic Health Inc ^(a)	3,357		100
		$	19,888		Glaukos Corp ^(a)	146,340		4,888
Environmental Control - 1.68%					Globus Medical Inc ^(a)	16,066		356
Advanced Disposal Services Inc ^(a)	119,634		2,396		Henry Schein Inc ^(a)	47,805		7,132


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016




COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Healthcare - Products (continued)					Healthcare - Services (continued)
ICU Medical Inc ^(a)	2,423	$	338		US Physical Therapy Inc	2,370	$	135
IDEXX Laboratories Inc ^(a)	100,439		10,761				$	24,944

Inogen Inc ^(a)	4,172		224		Holding Companies - Diversified - 0.03%
Insulet Corp ^(a)	7,940		295		HRG Group Inc ^(a)	24,782		373
Integer Holdings Corp ^(a)	66,111		1,458

Integra LifeSciences Holdings Corp ^(a)	6,336		504		Home Builders - 0.37%
Intersect ENT Inc ^(a)	4,923		72		AV Homes Inc ^(a)	796		13
InVivo Therapeutics Holdings Corp ^(a)	6,477		28		Cavco Industries Inc ^(a)	1,154		107
iRadimed Corp ^(a)	1,170		11		Century Communities Inc ^(a)	407		8
iRhythm Technologies Inc ^(a)	8,038		201		Installed Building Products Inc ^(a)	117,437		3,881
IRIDEX Corp ^(a)	1,809		24		KB Home	6,672		97
K2M Group Holdings Inc ^(a)	145,582		2,485		LGI Homes Inc ^(a)	2,837		84
LeMaitre Vascular Inc	2,905		61		M/I Homes Inc ^(a)	1,126		24
Luminex Corp ^(a)	6,131		128		MDC Holdings Inc	2,033		48
Masimo Corp ^(a)	8,704		479		Meritage Homes Corp ^(a)	20,640		639
Medgenics Inc ^(a)	4,858		23		PICO Holdings Inc ^(a)	538		7
Meridian Bioscience Inc	6,919		114		Taylor Morrison Home Corp ^(a)	5,785		99
Merit Medical Systems Inc ^(a)	6,109		134		TRI Pointe Group Inc ^(a)	1,213		13
MiMedx Group Inc ^(a)	18,657		166		UCP Inc ^(a)	708		6
NanoString Technologies Inc ^(a)	3,032		59		Winnebago Industries Inc	5,199		147
Natus Medical Inc ^(a)	4,488		177				$	5,173
Nevro Corp ^(a)	98,839		9,085
					Home Furnishings - 0.38%
Novadaq Technologies Inc ^(a)	159,112		1,768		American Woodmark Corp ^(a)	3,130		234
NuVasive Inc ^(a)	10,099		603		Bassett Furniture Industries Inc	1,288		29
NxStage Medical Inc ^(a)	8,791		200
					DTS Inc/CA	3,125		132
OraSure Technologies Inc ^(a)	11,104		83
					Ethan Allen Interiors Inc	4,776		147
Orthofix International NV ^(a)	3,443		126		Hooker Furniture Corp	525		14
Oxford Immunotec Global PLC ^(a)	4,524		58		iRobot Corp ^(a)	6,193		314
Penumbra Inc ^(a)	81,845		5,397
					La-Z-Boy Inc	6,448		151
Quidel Corp ^(a)	4,937		95		Select Comfort Corp ^(a)	6,294		121
Repligen Corp ^(a)	6,128		175		Tempur Sealy International Inc ^(a)	75,053		4,058
Rockwell Medical Inc ^(a)	8,712		51		Universal Electronics Inc ^(a)	1,969		138
SeaSpine Holdings Corp ^(a)	1		—
							$	5,338
Spectranetics Corp/The ^(a)	5,937		129
					Housewares - 0.00%
STAAR Surgical Co ^(a)	8,088		68
					Libbey Inc	770		12
Surmodics Inc ^(a)	2,615		65
T2 Biosystems Inc ^(a)	2,570		16
					Insurance - 0.20%
Tandem Diabetes Care Inc ^(a)	4,286		26
					AMERISAFE Inc	3,625		202
Utah Medical Products Inc	735		46		Atlas Financial Holdings Inc ^(a)	51,640		886
Vascular Solutions Inc ^(a)	3,280		150
					Crawford & Co	2,536		29
(a)
Zeltiq Aesthetics Inc	179,042		5,926		eHealth Inc ^(a)	3,625		28
		$	65,218		Essent Group Ltd ^(a)	15,601		412
Healthcare - Services - 1.77%					Maiden Holdings Ltd	1,808		25
AAC Holdings Inc ^(a)	2,082		34
					National General Holdings Corp	8,055		166
Acadia Healthcare Co Inc ^(a)	89,779		3,228		National Interstate Corp	479		15
Addus HomeCare Corp ^(a)	479		12
					Primerica Inc	9,601		525
Adeptus Health Inc ^(a)	2,684		81
					RLI Corp	6,360		354
Air Methods Corp ^(a)	4,941		131		State National Cos Inc	986		10
Almost Family Inc ^(a)	605		24		Third Point Reinsurance Ltd ^(a)	763		9
Amedisys Inc ^(a)	3,872		167		Trupanion Inc ^(a)	2,707		44
American Renal Associates Holdings Inc ^(a)	1,877		33		United Insurance Holdings Corp	2,534		37
Amsurg Corp ^(a)	79,865		4,772
					Universal Insurance Holdings Inc	4,521		96
Capital Senior Living Corp ^(a)	5,496		88
							$	2,838

Chemed Corp	3,484		493		Internet - 5.84%

Civitas Solutions Inc(a)	3,234		55		1-800-Flowers.com Inc ^(a)	2,344		22
Ensign Group Inc/The	6,487		120		8x8 Inc ^(a)	376,646		5,368

Genesis Healthcare Inc(a)	6,378		17		Angie's List Inc ^(a)	7,337		56
HealthSouth Corp	18,021		723		Autobytel Inc ^(a)	690		11
(a)
ICON PLC	75,794		6,085		Blucora Inc ^(a)	1,692		23
Invitae Corp ^(a)	4,003		31
					Blue Nile Inc	2,191		77

Laboratory Corp of America Holdings(a)	17,510		2,195		Boingo Wireless Inc ^(a)	3,890		38

LHC Group Inc(a)	369		13		ChannelAdvisor Corp ^(a)	142,807		1,571

Magellan Health Inc(a)	2,387		123		Chegg Inc ^(a)	419,884		2,792
Molina Healthcare Inc ^(a)	3,971		216
					Cogent Communications Holdings Inc	477,384		17,615

Natera Inc(a)	4,589		39		comScore Inc ^(a)	99,693		2,870

Nobilis Health Corp(a)	3,493		12		Corindus Vascular Robotics Inc ^(a)	12,273		9

Providence Service Corp/The(a)	2,501		101		DHI Group Inc ^(a)	9,946		57
Quorum Health Corp ^(a)	6,567		26
					Endurance International Group Holdings Inc	10,945		80

RadNet Inc(a)	7,945		55		(a)

Select Medical Holdings Corp(a)	6,766		88		ePlus Inc ^(a)	906		83

Surgery Partners Inc(a)	2,349		38		Etsy Inc ^(a)	14,490		188
Surgical Care Affiliates Inc ^(a)	6,450		276
					Expedia Inc	42,581		5,503

Teladoc Inc(a)	340,518		5,533		Global Eagle Entertainment Inc ^(a)	572,052		4,605


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Internet (continued)					Machinery - Diversified (continued)
GrubHub Inc ^(a)	16,471	$	628		Nordson Corp	61,550	$	6,163
HealthStream Inc ^(a)	4,982		134		Power Solutions International Inc ^(a)	684		7
Imperva Inc ^(a)	40,122		1,481		Tennant Co	41,733		2,627
Intralinks Holdings Inc ^(a)	1,488		14				$	29,678
Lionbridge Technologies Inc ^(a)	11,635		56		Media - 0.72%
MeetMe Inc ^(a)	7,786		38		Central European Media Enterprises Ltd ^(a)	14,249		35
Mimecast Ltd ^(a)	147,626		2,988		Entravision Communications Corp	12,154		81
New Media Investment Group Inc	1,583		23		Gray Television Inc ^(a)	7,304		65
NIC Inc	15,222		349		Hemisphere Media Group Inc ^(a)	1,493		17
Overstock.com Inc ^(a)	2,801		41		Houghton Mifflin Harcourt Co ^(a)	11,480		145
Pandora Media Inc ^(a)	290,511		3,291		Liberty Media Corp-Liberty Media ^(a)	206,784		5,755
Perficient Inc ^(a)	4,945		92		Liberty Media Corp-Liberty Media ^(a)	1,038		28
Proofpoint Inc ^(a)	175,288		13,739		MSG Networks Inc ^(a)	6,402		122
Q2 Holdings Inc ^(a)	237,651		6,678		Nexstar Broadcasting Group Inc	66,987		3,269
Quotient Technology Inc ^(a)	8,732		93		Radio One Inc ^(a)	5,958		15
Rapid7 Inc ^(a)	3,776		54		Sinclair Broadcast Group Inc	9,113		229
Reis Inc	1,413		28		TiVo Corp ^(a)	11,160		222
RingCentral Inc ^(a)	379,669		7,859		Townsquare Media Inc ^(a)	904		8
Rubicon Project Inc/The ^(a)	3,129		24		tronc Inc ^(a)	3,445		41
Shutterfly Inc ^(a)	7,250		355		Value Line Inc	418		8
Shutterstock Inc ^(a)	4,820		284		World Wrestling Entertainment Inc	6,972		123
Stamps.com Inc ^(a)	3,676		359				$	10,163
TechTarget Inc ^(a)	1,505		12
					Metal Fabrication & Hardware - 0.52%
Trade Desk Inc/The ^(a)	61,640		1,552		Advanced Drainage Systems Inc	6,515		124
TrueCar Inc ^(a)	9,716		94
					Global Brass & Copper Holdings Inc	3,684		106
VASCO Data Security International Inc ^(a)	5,108		70
					Mueller Industries Inc	9,017		273
Wayfair Inc ^(a)	4,353		145		Mueller Water Products Inc - Class A	32,614		402
Web.com Group Inc ^(a)	8,049		130
					Omega Flex Inc	723		28
WebMD Health Corp ^(a)	7,882		387		RBC Bearings Inc ^(a)	84,156		6,004
XO Group Inc ^(a)	4,994		92		Rexnord Corp ^(a)	13,823		275
Zendesk Inc ^(a)	11,127		293
					Sun Hydraulics Corp	3,836		113
Zix Corp ^(a)	12,085		49
							$	7,325
		$	82,400		Mining - 0.07%
Investment Companies - 0.00%					Coeur Mining Inc ^(a)	24,915		278
Real Industry Inc ^(a)	5,684		30
					Gold Resource Corp	7,502		43
					Kaiser Aluminum Corp	880		64
Iron & Steel - 0.03%					United States Lime & Minerals Inc	126		8
ALJ Regional Holdings Inc ^(a)	4,708		19
					US Silica Holdings Inc	13,847		640
Worthington Industries Inc	9,608		451				$	1,033
		$	470		Miscellaneous Manufacturers - 2.05%
Leisure Products & Services - 1.99%					Actuant Corp	3,832		85
Black Diamond Inc ^(a)	350,049		1,733
					AZZ Inc	5,514		294
Callaway Golf Co	11,380		116		Carlisle Cos Inc	72,186		7,569
Camping World Holdings Inc ^(a)	41,301		923
					Chase Corp	1,371		94
ClubCorp Holdings Inc	8,758		101		CLARCOR Inc	6,555		408
Fox Factory Holding Corp ^(a)	4,414		96		EnPro Industries Inc	2,992		162
Liberty TripAdvisor Holdings Inc ^(a)	543,016		12,055		Fabrinet ^(a)	7,798		296
Lindblad Expeditions Holdings Inc ^(a)	294,249		2,410		GP Strategies Corp ^(a)	2,509		65
Malibu Boats Inc ^(a)	3,773		55		Hexcel Corp	368,443		16,760
Marine Products Corp	3,021		28		Hillenbrand Inc	12,289		373
MCBC Holdings Inc	2,087		23		John Bean Technologies Corp	18,123		1,447
Nautilus Inc ^(a)	5,828		103		Lydall Inc ^(a)	4,107		192
Planet Fitness Inc ^(a)	488,530		10,357
					Myers Industries Inc	4,320		52
		$	28,000		Proto Labs Inc ^(a)	3,397		152
Lodging - 0.02%					Raven Industries Inc	3,066		66
Boyd Gaming Corp ^(a)	11,358		203		Smith & Wesson Holding Corp ^(a)	12,434		329
Century Casinos Inc ^(a)	2,763		18		Standex International Corp	1,325		101
ILG Inc	5,462		89		Sturm Ruger & Co Inc	2,573		158
La Quinta Holdings Inc ^(a)	2,348		23		Trinseo SA	6,543		343
		$	333				$	28,946
Machinery - Construction & Mining - 0.34%					Office & Business Equipment - 0.00%
Astec Industries Inc	86,680		4,798		Eastman Kodak Co ^(a)	2,861		43
Hyster-Yale Materials Handling Inc	578		34
		$	4,832		Office Furnishings - 0.25%
Machinery - Diversified - 2.10%					Herman Miller Inc	12,692		353
Alamo Group Inc	496		32		HNI Corp	9,268		377
Albany International Corp	1,709		70		Interface Inc	13,258		210
Altra Industrial Motion Corp	4,032		119		Kimball International Inc	6,162		77
Applied Industrial Technologies Inc	4,057		206		Knoll Inc	107,938		2,336
Gorman-Rupp Co/The	2,955		71		Steelcase Inc	11,942		159
IDEX Corp	158,601		13,709				$	3,512
Kadant Inc	485		25		Oil & Gas - 0.79%
Middleby Corp/The ^(a)	59,312		6,649		Callon Petroleum Co ^(a)	232,118		3,015


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Oil & Gas (continued)					Pharmaceuticals (continued)
Carrizo Oil & Gas Inc ^(a)	7,657	$	259		La Jolla Pharmaceutical Co ^(a)	2,396	$	42
CVR Energy Inc	234		3		Lifevantage Corp ^(a)	2,590		21
Evolution Petroleum Corp	4,606		35		MannKind Corp ^(a)	57,068		24
Isramco Inc ^(a)	141		14		MediciNova Inc ^(a)	5,225		35
Matador Resources Co ^(a)	249,924		5,450		Minerva Neurosciences Inc ^(a)	3,396		38
Panhandle Oil and Gas Inc	1,417		26		Mirati Therapeutics Inc ^(a)	1,997		10
Par Pacific Holdings Inc ^(a)	2,032		26		MyoKardia Inc ^(a)	2,339		31
Rice Energy Inc ^(a)	100,660		2,224		NantKwest Inc ^(a)	313		2
Sanchez Energy Corp ^(a)	3,308		21		Natural Health Trends Corp	1,526		36
Synergy Resources Corp ^(a)	2,929		20		Nektar Therapeutics ^(a)	17,746		220
		$	11,093		Neogen Corp ^(a)	5,016		264
Oil & Gas Services - 0.58%					Neos Therapeutics Inc ^(a)	2,464		15
Dril-Quip Inc ^(a)	37,739		1,793		Neurocrine Biosciences Inc ^(a)	172,670		7,558
Flotek Industries Inc ^(a)	10,062		119		Omega Protein Corp ^(a)	392		9
Forum Energy Technologies Inc ^(a)	90,740		1,633		Ophthotech Corp ^(a)	14,145		506
Oil States International Inc ^(a)	155,590		4,551		Osiris Therapeutics Inc ^(a)	2,946		12
PHI Inc ^(a)	215		3		Owens & Minor Inc	1,000		32
TETRA Technologies Inc ^(a)	10,970		60		Pacira Pharmaceuticals Inc/DE ^(a)	5,067		161
		$	8,159		Phibro Animal Health Corp	3,468		90
					Portola Pharmaceuticals Inc ^(a)	156,351		2,843
Packaging & Containers - 0.14%
AEP Industries Inc	794		87		PRA Health Sciences Inc ^(a)	3,348		178
Berry Plastics Group Inc ^(a)	38,470		1,683		Premier Inc ^(a)	188,423		5,999
					Prestige Brands Holdings Inc ^(a)	7,323		332
KapStone Paper and Packaging Corp	4,328		79
Multi-Color Corp	1,850		120		Progenics Pharmaceuticals Inc ^(a)	12,443		63
					Protagonist Therapeutics Inc ^(a)	1,084		20
		$	1,969
					Proteostasis Therapeutics Inc ^(a)	1,428		10
Pharmaceuticals - 5.07%
AcelRx Pharmaceuticals Inc ^(a)	8,221		23		Radius Health Inc ^(a)	67,780		2,909
Adamas Pharmaceuticals Inc ^(a)	234,711		3,225		Reata Pharmaceuticals Inc ^(a)	53,219		1,205
Aerie Pharmaceuticals Inc ^(a)	81,732		2,718		Regulus Therapeutics Inc ^(a)	6,826		19
Aimmune Therapeutics Inc ^(a)	237,142		3,861		Sarepta Therapeutics Inc ^(a)	65,186		2,558
Akebia Therapeutics Inc ^(a)	1,890		14		SciClone Pharmaceuticals Inc ^(a)	9,642		86
Akorn Inc ^(a)	225,710		5,406		Seres Therapeutics Inc ^(a)	3,194		34
Amicus Therapeutics Inc ^(a)	613,243		4,232		Sorrento Therapeutics Inc ^(a)	4,799		28
Amphastar Pharmaceuticals Inc ^(a)	6,877		125		Sucampo Pharmaceuticals Inc ^(a)	4,839		55
Ampio Pharmaceuticals Inc ^(a)	10,032		7		Supernus Pharmaceuticals Inc ^(a)	11,674		231
Anika Therapeutics Inc ^(a)	2,232		99		Synergy Pharmaceuticals Inc ^(a)	33,037		152
Anthera Pharmaceuticals Inc ^(a)	6,708		15		Synutra International Inc ^(a)	1,391		5
Array BioPharma Inc ^(a)	2,439		14		Syros Pharmaceuticals Inc ^(a)	665		9
Avexis Inc ^(a)	851		40		Teligent Inc ^(a)	8,203		53
Axovant Sciences Ltd ^(a)	4,300		53		TESARO Inc ^(a)	47,604		5,755
BeiGene Ltd ADR^(a)	84,012		2,793		TG Therapeutics Inc ^(a)	6,636		36
BioScrip Inc ^(a)	4,698		13		TherapeuticsMD Inc ^(a)	19,050		109
BioSpecifics Technologies Corp ^(a)	951		41		Titan Pharmaceuticals Inc ^(a)	4,352		20
Cara Therapeutics Inc ^(a)	506		4		Trevena Inc ^(a)	7,873		38
Catalent Inc ^(a)	13,652		311		USANA Health Sciences Inc ^(a)	948		122
Cempra Inc ^(a)	6,064		110		Vanda Pharmaceuticals Inc ^(a)	6,449		96
Cidara Therapeutics Inc ^(a)	120		1		Vital Therapies Inc ^(a)	4,166		22
Clovis Oncology Inc ^(a)	5,778		168		Voyager Therapeutics Inc ^(a)	887		11
Concert Pharmaceuticals Inc ^(a)	1,180		9		vTv Therapeutics Inc ^(a)	1,344		7
Corcept Therapeutics Inc ^(a)	14,447		100		Xencor Inc ^(a)	5,904		126
DBV Technologies SA ADR^(a)	56,434		1,937				$	71,459
Depomed Inc ^(a)	8,406		188		Private Equity - 0.07%
DexCom Inc ^(a)	64,881		5,076		Fifth Street Asset Management Inc	1,838		10
Diplomat Pharmacy Inc ^(a)	197,418		4,574		GSV Capital Corp	175,979		843
Durect Corp ^(a)	25,772		29		Kennedy-Wilson Holdings Inc	5,593		115
Dyax Corp - Rights ^(a),(b)	211,240		235				$	968
Eagle Pharmaceuticals Inc/DE ^(a)	1,583		88		Real Estate - 0.03%
Egalet Corp ^(a)	1,012		6		Alexander & Baldwin Inc	3,364		141
Flexion Therapeutics Inc ^(a)	4,152		79		Consolidated-Tomoka Land Co	697		35
Global Blood Therapeutics Inc ^(a)	2,958		52		HFF Inc	4,873		130
GW Pharmaceuticals PLC ADR^(a)	17,104		2,008		Marcus & Millichap Inc ^(a)	2,620		61
Heron Therapeutics Inc ^(a)	5,712		85		RMR Group Inc/The	1,296		45
Heska Corp ^(a)	1,274		63				$	412
Horizon Pharma Plc ^(a)	32,932		551		REITS - 1.30%
Ignyta Inc ^(a)	3,299		16		Acadia Realty Trust	3,868		130
Immune Design Corp ^(a)	2,334		12		Alexander's Inc	498		191
Impax Laboratories Inc ^(a)	16,468		331		American Assets Trust Inc	1,854		74
Inotek Pharmaceuticals Corp ^(a)	2,768		19		Armada Hoffler Properties Inc	5,318		71
Insys Therapeutics Inc ^(a)	4,091		44		CareTrust REIT Inc	185,707		2,615
Intra-Cellular Therapies Inc ^(a)	6,463		80		Chesapeake Lodging Trust	2,148		47
Ironwood Pharmaceuticals Inc ^(a)	23,328		298		City Office REIT Inc	3,148		40
Kadmon Holdings Inc ^(a)	1,159		5		CoreSite Realty Corp	6,911		510
Keryx Biopharmaceuticals Inc ^(a)	14,169		64		CyrusOne Inc	27,650		1,233


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
REITS (continued)					Retail (continued)
DuPont Fabros Technology Inc	10,271	$	419		Hibbett Sports Inc ^(a)	4,941	$	192
EastGroup Properties Inc	6,587		447		HSN Inc	4,319		163
Education Realty Trust Inc	59,717		2,543		Jack in the Box Inc	45,758		4,289
FelCor Lodging Trust Inc	16,319		104		Kate Spade & Co ^(a)	75,060		1,257
First Industrial Realty Trust Inc	6,916		183		Kirkland's Inc ^(a)	1,584		19
Four Corners Property Trust Inc	5,503		111		Lithia Motors Inc	79,725		6,839
GEO Group Inc/The	2,155		52		MarineMax Inc ^(a)	93,653		1,868
Global Medical REIT Inc	71,610		698		Nathan's Famous Inc ^(a)	664		35
Gramercy Property Trust	8,422		78		Ollie's Bargain Outlet Holdings Inc ^(a)	328,133		8,975
Hersha Hospitality Trust	435		8		Papa John's International Inc	109,744		8,280
iStar Inc ^(a)	12,290		137		Party City Holdco Inc ^(a)	2,463		40
LTC Properties Inc	7,043		353		PetMed Express Inc	3,971		79
Medical Properties Trust Inc	18,811		262		Pier 1 Imports Inc	3,679		16
Monmouth Real Estate Investment Corp	6,612		90		Popeyes Louisiana Kitchen Inc ^(a)	2,998		160
National Health Investors Inc	7,607		576		Potbelly Corp ^(a)	4,779		62
National Storage Affiliates Trust	720		14		PriceSmart Inc	42,280		3,845
Orchid Island Capital Inc	1,283		14		Red Robin Gourmet Burgers Inc ^(a)	34,549		1,589
Pennsylvania Real Estate Investment Trust	2,641		52		Ruth's Hospitality Group Inc	6,296		100
Physicians Realty Trust	9,626		190		Sears Holdings Corp ^(a)	587		7
Potlatch Corp	5,588		215		Shake Shack Inc ^(a)	2,889		92
PS Business Parks Inc	4,155		456		Sonic Corp	6,503		149
QTS Realty Trust Inc	92,567		4,254		Sportsman's Warehouse Holdings Inc ^(a)	4,911		45
Retail Opportunity Investments Corp	16,297		328		Stein Mart Inc	6,253		38
Rexford Industrial Realty Inc	3,459		73		Tailored Brands Inc	2,841		45
Ryman Hospitality Properties Inc	5,956		300		Texas Roadhouse Inc	152,938		6,197
Sabra Health Care REIT Inc	3,751		87		Tile Shop Holdings Inc ^(a)	461,948		7,831
Saul Centers Inc	1,562		94		Tilly's Inc ^(a)	119,861		1,112
STAG Industrial Inc	9,448		218		Urban Outfitters Inc ^(a)	68,200		2,281
Terreno Realty Corp	1,584		41		Vera Bradley Inc ^(a)	3,008		40
UMH Properties Inc	1,634		20		Vitamin Shoppe Inc ^(a)	534		13
Universal Health Realty Income Trust	2,248		132		Wingstop Inc	2,940		79
Urban Edge Properties	17,831		460		Winmark Corp	448		48
Urstadt Biddle Properties Inc	5,330		115		Zoe's Kitchen Inc ^(a)	46,794		1,061
Washington Prime Group Inc	5,344		56				$	103,786
Washington Real Estate Investment Trust	6,532		192		Savings & Loans - 0.47%
		$	18,283		Banc of California Inc	7,960		106
Retail - 7.36%					BofI Holding Inc ^(a)	187,222		3,488
American Eagle Outfitters Inc	196,590		3,350		Greene County Bancorp Inc	273		5
Asbury Automotive Group Inc ^(a)	2,768		141		Hingham Institution for Savings	135		19
Ascena Retail Group Inc ^(a)	7,799		38		Home Bancorp Inc	297		9
Big Lots Inc	9,476		411		Meridian Bancorp Inc	1,627		26
Biglari Holdings Inc ^(a)	35		15		Northfield Bancorp Inc	853		14
BJ's Restaurants Inc ^(a)	3,172		115		Pacific Premier Bancorp Inc ^(a)	112,943		2,919
Bloomin' Brands Inc	15,684		271				$	6,586
BMC Stock Holdings Inc ^(a)	10,007		166		Semiconductors - 4.66%
Bob Evans Farms Inc/DE	3,841		158		Advanced Micro Devices Inc ^(a)	49,613		359
Bojangles' Inc ^(a)	2,167		32		Ambarella Inc ^(a)	2,829		174
Buckle Inc/The	1,926		40		Amkor Technology Inc ^(a)	8,700		81
Buffalo Wild Wings Inc ^(a)	41,994		6,116		Applied Micro Circuits Corp ^(a)	13,534		100
Build-A-Bear Workshop Inc ^(a)	634		9		Cabot Microelectronics Corp	1,823		101
Burlington Stores Inc ^(a)	54,610		4,092		Cavium Inc ^(a)	263,281		14,862
Carrols Restaurant Group Inc ^(a)	276,024		3,450		CEVA Inc ^(a)	3,647		110
Cato Corp/The	659		20		Cirrus Logic Inc ^(a)	100,765		5,440
Cheesecake Factory Inc/The	9,493		505		Entegris Inc ^(a)	12,199		194
Chico's FAS Inc	26,773		312		Exar Corp ^(a)	1,614		15
Children's Place Inc/The	4,247		323		FormFactor Inc ^(a)	7,396		66
Chuy's Holdings Inc ^(a)	64,658		1,836		Inphi Corp ^(a)	36,770		1,364
Cracker Barrel Old Country Store Inc	2,490		344		Integrated Device Technology Inc ^(a)	18,556		384
Dave & Buster's Entertainment Inc ^(a)	199,893		8,266		IPG Photonics Corp ^(a)	20,766		2,014
Del Frisco's Restaurant Group Inc ^(a)	805		12		Lattice Semiconductor Corp ^(a)	21,505		130
Denny's Corp ^(a)	10,553		109		MACOM Technology Solutions Holdings Inc	280,862		10,324
DineEquity Inc	1,379		109		(a)
Diversified Restaurant Holdings Inc ^(a)	59,674		65		MaxLinear Inc ^(a)	13,226		247
Duluth Holdings Inc ^(a)	1,957		53		Microsemi Corp ^(a)	314,446		13,248
Finish Line Inc/The	1,687		33		MKS Instruments Inc	1,759		89
FirstCash Inc	6,112		289		Monolithic Power Systems Inc	78,270		6,169
Five Below Inc ^(a)	275,983		10,371		Nanometrics Inc ^(a)	3,780		79
Francesca's Holdings Corp ^(a)	7,374		119		Power Integrations Inc	5,867		378
Freshpet Inc ^(a)	412,907		3,510		Rambus Inc ^(a)	9,392		114
Genesco Inc ^(a)	1,622		87		Semtech Corp ^(a)	8,911		216
GMS Inc ^(a)	94,855		1,971		Sigma Designs Inc ^(a)	75,132		548
GNC Holdings Inc	9,493		128		Silicon Laboratories Inc ^(a)	138,157		8,282
Group 1 Automotive Inc	642		39		Synaptics Inc ^(a)	7,441		388
Habit Restaurants Inc/The ^(a)	2,495		35		Tessera Technologies Inc	7,520		279


Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Semiconductors (continued)					Storage & Warehousing - 0.01%
Ultratech Inc ^(a)	520	$	11		Mobile Mini Inc	4,443	$	113
		$	65,766		Wesco Aircraft Holdings Inc ^(a)	2,595		33
Software - 13.48%							$	146
2U Inc ^(a)	373,261		13,012		Telecommunications - 2.30%
ACI Worldwide Inc ^(a)	23,061		418		A10 Networks Inc ^(a)	8,804		68
Acxiom Corp ^(a)	5,171		122		Acacia Communications Inc ^(a)	967		67
Amber Road Inc ^(a)	3,505		33		ADTRAN Inc	4,320		78
American Software Inc/GA	5,374		56		Aerohive Networks Inc ^(a)	4,458		24
Apigee Corp ^(a)	3,127		54		Arista Networks Inc ^(a)	50,080		4,244
Appfolio Inc ^(a)	1,647		31		CalAmp Corp ^(a)	6,754		87
Aspen Technology Inc ^(a)	316,586		15,589		Ciena Corp ^(a)	174,250		3,378
Atlassian Corp PLC ^(a)	80,686		2,167		Clearfield Inc ^(a)	2,184		37
Avid Technology Inc ^(a)	4,576		30		Consolidated Communications Holdings Inc	8,272		198
Benefitfocus Inc ^(a)	2,406		78		DigitalGlobe Inc ^(a)	136,293		3,421
Blackbaud Inc	242,047		14,862		EarthLink Holdings Corp	19,467		111
Bottomline Technologies de Inc ^(a)	4,741		108		Extreme Networks Inc ^(a)	19,755		83
Box Inc ^(a)	9,152		132		FairPoint Communications Inc ^(a)	3,611		56
Brightcove Inc ^(a)	6,015		67		General Communication Inc ^(a)	5,726		91
Broadridge Financial Solutions Inc	161,958		10,472		Gigamon Inc ^(a)	48,294		2,671
BroadSoft Inc ^(a)	317,622		13,198		Globalstar Inc ^(a)	42,775		40
Callidus Software Inc ^(a)	8,466		155		GTT Communications Inc ^(a)	174,200		3,919
Castlight Health Inc ^(a)	8,818		38		IDT Corp - Class B	2,422		43
CommVault Systems Inc ^(a)	8,712		466		Infinera Corp ^(a)	13,381		104
Computer Programs & Systems Inc	2,316		60		Infoblox Inc ^(a)	7,787		206
Cornerstone OnDemand Inc ^(a)	73,932		3,053		Inteliquent Inc	6,332		106
CSG Systems International Inc	7,797		297		InterDigital Inc/PA	7,233		511
Cvent Inc ^(a)	4,096		128		Leap Wireless International Inc - Rights	5,801		17
Ebix Inc	5,957		334		(a),(b),(c)
Envestnet Inc ^(a)	156,522		5,533		LogMeIn Inc	13,573		1,290
Everyday Health Inc ^(a)	2,301		24		Loral Space & Communications Inc ^(a)	2,324		90
Exa Corp ^(a)	3,064		43		Lumos Networks Corp ^(a)	534		8
Fair Isaac Corp	44,677		5,391		NeoPhotonics Corp ^(a)	1,167		16
Five9 Inc ^(a)	6,519		93		NETGEAR Inc ^(a)	5,137		259
Guidance Software Inc ^(a)	4,711		24		NeuStar Inc ^(a)	5,264		118
Guidewire Software Inc ^(a)	227,314		13,059		Numerex Corp ^(a)	903		6
HubSpot Inc ^(a)	113,635		5,960		Oclaro Inc ^(a)	445,027		3,253
inContact Inc ^(a)	7,980		111		ORBCOMM Inc ^(a)	10,825		97
InnerWorkings Inc ^(a)	6,998		62		Plantronics Inc	7,383		382
Instructure Inc ^(a)	2,067		53		Shenandoah Telecommunications Co	9,345		247
Interactive Intelligence Group Inc ^(a)	182,758		11,048		ShoreTel Inc ^(a)	3,527		24
j2 Global Inc	9,663		688		Silicom Ltd	480		18
Jive Software Inc ^(a)	11,752		46		Sonus Networks Inc ^(a)	2,114		12
LivePerson Inc ^(a)	10,440		89		Ubiquiti Networks Inc ^(a)	5,777		303
Majesco ^(a)	1,981		9		ViaSat Inc ^(a)	5,313		375
Medidata Solutions Inc ^(a)	125,550		6,025		Vonage Holdings Corp ^(a)	925,354		6,348
MicroStrategy Inc ^(a)	26,969		5,253		West Corp	3,507		69
MINDBODY Inc ^(a)	2,799		58		Windstream Holdings Inc	1,515		12
MobileIron Inc ^(a)	9,635		35				$	32,487
Model N Inc ^(a)	156,110		1,608		Textiles - 0.03%
Monotype Imaging Holdings Inc	194,494		3,715		Culp Inc	2,164		60
NantHealth Inc ^(a)	123,272		1,619		G&K Services Inc	3,242		307
New Relic Inc ^(a)	2,983		109		UniFirst Corp/MA	194		24
Omnicell Inc ^(a)	36,166		1,180				$	391
Park City Group Inc ^(a)	2,393		31
					Transportation - 1.07%
Paycom Software Inc ^(a)	9,686		501		Air Transport Services Group Inc ^(a)	1,758		23
PDF Solutions Inc ^(a)	4,747		94		Echo Global Logistics Inc ^(a)	4,707		100
Pegasystems Inc	32,293		998		Forward Air Corp	4,125		171
Planet Payment Inc ^(a)	9,513		33		Genesee & Wyoming Inc ^(a)	91,376		6,208
Progress Software Corp	953		26		Heartland Express Inc	6,272		115
PROS Holdings Inc ^(a)	4,548		100		Hub Group Inc ^(a)	6,952		253
Quality Systems Inc	9,882		127		Kirby Corp ^(a)	10,714		632
RealPage Inc ^(a)	13,283		361
					Knight Transportation Inc	240,597		7,038
Rosetta Stone Inc ^(a)	3,379		24		Matson Inc	2,636		105
Sapiens International Corp NV	5,032		69		Radiant Logistics Inc ^(a)	5,212		13
SPS Commerce Inc ^(a)	101,386		6,325		Swift Transportation Co ^(a)	15,554		348
Synchronoss Technologies Inc ^(a)	182,079		6,684		Universal Logistics Holdings Inc	1,481		18
Tabula Rasa HealthCare Inc ^(a)	60,193		705		YRC Worldwide Inc ^(a)	1,627		15
Take-Two Interactive Software Inc ^(a)	274,938		12,204
							$	15,039
Ultimate Software Group Inc/The ^(a)	76,528		16,147
Veeva Systems Inc ^(a)	180,570		7,015		Water - 0.03%
					American States Water Co	3,282		131
Workiva Inc ^(a)	4,163		69
					California Water Service Group	6,037		187
Xactly Corp ^(a)	138,432		1,786
					Connecticut Water Service Inc	427		22
Zedge Inc ^(a)	1		—
					Middlesex Water Co	2,406		87
		$	190,094


				Schedule of Investments
SmallCap Growth Fund I
October 31, 2016



COMMON STOCKS (continued)		Shares Held	Value (000's)
Water (continued)
York Water Co/The		2,003	$	64
			$	491
TOTAL COMMON STOCKS			$	1,318,328
INVESTMENT COMPANIES - 5.39%		Shares Held	Value (000's)
Money Market Funds - 5.39%
BlackRock Liquidity Funds FedFund Portfolio		8,458		8
Cash Account Trust - Government & Agency		764,301		764
Portfolio - Government Cash Managed
First American Government Obligations Fund		75,246,100		75,247
			$	76,019
TOTAL INVESTMENT COMPANIES			$	76,019
Total Investments			$	1,394,347
Other Assets and Liabilities - 1.10%			$	15,559
TOTAL NET ASSETS - 100.00%			$	1,409,906


(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
	$252 or 0.02% of net assets.
(c)	Security is Illiquid. At the end of the period, the value of these securities
	totaled $124 or 0.01% of net assets.



	Portfolio Summary (unaudited)
Sector				Percent
Consumer, Non-cyclical				24.22	%
Technology				21.25	%
Industrial				14.96	%
Consumer, Cyclical				14.60	%
Communications				8.86	%
Financial				7.17	%
Investment Companies				5.39	%
Energy				1.38	%
Basic Materials				0.97	%
Utilities				0.07	%
Diversified				0.03	%
Other Assets and Liabilities				1.10	%
TOTAL NET ASSETS				100.00	%

Futures Contracts

											Unrealized
Type		Long/Short Contracts				Notional Value		Fair Value		Appreciation/(Depreciation)
Russell 2000 Mini; December 2016		Long		752	$	93,053	$		89,586	$	(3,467	)
Total									$		(3,467	)

Amounts in thousands except contracts


Schedule of Investments
SmallCap S&P 600 Index Fund
October 31, 2016



COMMON STOCKS - 98.31%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Advertising - 0.01%					Banks (continued)
Harte-Hanks Inc	81,623	$	115		ServisFirst Bancshares Inc	38,692	$	2,095
					Simmons First National Corp	50,701		2,502
Aerospace & Defense - 1.15%					Southside Bancshares Inc	42,835		1,397
AAR Corp	56,623		1,822		Texas Capital Bancshares Inc ^(a)	80,636		4,782
Aerojet Rocketdyne Holdings Inc ^(a)	122,121		2,149		Tompkins Financial Corp	21,377		1,695
Aerovironment Inc ^(a)	36,111		866		TrustCo Bank Corp NY	167,740		1,174
Cubic Corp	43,571		1,861		UMB Financial Corp	76,477		4,745
Kaman Corp	47,535		2,075		United Bankshares Inc/WV	117,934		4,446
Moog Inc ^(a)	57,091		3,315		United Community Banks Inc/GA	124,262		2,680
National Presto Industries Inc	8,653		755		Walker & Dunlop Inc ^(a)	48,655		1,171
		$	12,843		Westamerica Bancorporation	44,973		2,229
Agriculture - 0.35%					Wintrust Financial Corp	90,662		4,891
Andersons Inc/The	46,016		1,751				$	102,738
Universal Corp/VA	39,946		2,165		Biotechnology - 1.48%
		$	3,916		Acorda Therapeutics Inc ^(a)	80,956		1,433
					AMAG Pharmaceuticals Inc ^(a)	59,927		1,540
Airlines - 0.90%
					ANI Pharmaceuticals Inc ^(a)	13,939		832
Allegiant Travel Co	22,847		3,151
Hawaiian Holdings Inc ^(a)	93,727		4,220		Cambrex Corp ^(a)	56,404		2,273
					Emergent BioSolutions Inc ^(a)	60,341		1,612
SkyWest Inc	90,433		2,726
					Ligand Pharmaceuticals Inc ^(a)	33,297		3,188
		$	10,097
					Medicines Co/The ^(a)	122,067		4,022
Crocs Apparel Inc - 1.03% (a)	128,937		992		Momenta Pharmaceuticals Inc ^(a)	109,743		1,224
Iconix Brand Group Inc ^(a)	98,480		776		Spectrum Pharmaceuticals Inc ^(a)	123,859		438
Oxford Industries Inc	26,186		1,642				$	16,562
Perry Ellis International Inc ^(a)	21,207		394		Building Materials - 2.50%
Steven Madden Ltd ^(a)	96,753		3,232		AAON Inc	69,646		2,086
Unifi Inc ^(a)	26,494		762		Apogee Enterprises Inc	50,525		2,059
					Boise Cascade Co ^(a)	67,992		1,309
Wolverine World Wide Inc	174,487		3,725
		$	11,523		Drew Industries Inc	43,140		3,863
					Gibraltar Industries Inc ^(a)	54,930		2,137
Automobile Manufacturers - 0.11%
Wabash National Corp ^(a)	112,152		1,262		Griffon Corp	53,329		890
					Headwaters Inc ^(a)	130,031		2,132
					Patrick Industries Inc ^(a)	25,544		1,465
Automobile Parts & Equipment - 1.32%					PGT Inc ^(a)	85,881		842
American Axle & Manufacturing Holdings Inc	134,131		2,403
(a)					Quanex Building Products Corp	60,053		979
Cooper-Standard Holding Inc ^(a)	30,368		2,772		Simpson Manufacturing Co Inc	72,168		3,089
Dorman Products Inc ^(a)	53,254		3,421		Trex Co Inc ^(a)	51,493		2,771
Gentherm Inc ^(a)	64,006		1,802		Universal Forest Products Inc	35,631		3,064
Motorcar Parts of America Inc ^(a)	32,687		858		US Concrete Inc ^(a)	24,854		1,240
Standard Motor Products Inc	35,074		1,715				$	27,926
Superior Industries International Inc	40,135		983		Chemicals - 3.12%
Titan International Inc	76,813		783		A Schulman Inc	51,232		1,473
		$	14,737		Aceto Corp	52,022		954
					AdvanSix Inc ^(a)	53,401		852
Banks - 9.18%
Ameris Bancorp	61,188		2,221		American Vanguard Corp	45,316		689
Banner Corp	46,795		2,112		Balchem Corp	55,490		4,212
Boston Private Financial Holdings Inc	146,378		1,925		Calgon Carbon Corp	88,824		1,403
Cardinal Financial Corp	56,953		1,497		Chemours Co/The	318,408		5,231
Central Pacific Financial Corp	54,373		1,394		Hawkins Inc	16,745		676
City Holding Co	26,327		1,376		HB Fuller Co	88,232		3,712
					Ingevity Corp ^(a)	73,872		3,058
Columbia Banking System Inc	101,853		3,363
Community Bank System Inc	77,662		3,659		Innophos Holdings Inc	34,091		1,563
Customers Bancorp Inc ^(a)	45,013		1,218		Innospec Inc	42,065		2,534
					Intrepid Potash Inc ^(a)	98,111		102
First CVB BanCorp/Puerto Financial Corp Rico ^(a)	201,962 176,164		2,956 1,036		Koppers Holdings Inc ^(a)	36,235		1,187
					Kraton Corp ^(a)	54,136		1,388
First Commonwealth Financial Corp	156,072		1,586
First Financial Bancorp	108,724		2,338		Quaker Chemical Corp	23,248		2,499
First Financial Bankshares Inc	115,909		4,196		Rayonier Advanced Materials Inc	75,909		981
First Midwest Bancorp Inc/IL	142,677		2,755		Stepan Co	34,139		2,425
First NBC Bank Holding Co ^(a)	28,006		151				$	34,939
Glacier Bancorp Inc	133,651		3,777		Coal - 0.16%
					Cloud Peak Energy Inc ^(a)	107,593		663
Great Western Bancorp Inc	102,983		3,320
Hanmi Financial Corp	56,608		1,415		SunCoke Energy Inc	112,610		1,149
Home BancShares Inc/AR	216,765		4,663				$	1,812
Hope Bancorp Inc	222,786		3,596		Commercial Services - 5.72%
Independent Bank Corp/Rockland MA	46,197		2,548		ABM Industries Inc	98,124		3,835
LegacyTexas Financial Group Inc	72,783		2,490		Albany Molecular Research Inc ^(a)	39,114		610
NBT Bancorp Inc	75,569		2,547		American Public Education Inc ^(a)	28,200		568
OFG Bancorp	77,051		821		AMN Healthcare Services Inc ^(a)	84,307		2,765
Old National Bancorp/IN	236,881		3,482		Brink's Co/The	78,224		3,094
Opus Bank	31,874		639		Capella Education Co	20,290		1,483
Pinnacle Financial Partners Inc	76,100		3,927		Cardtronics PLC ^(a)	79,364		3,968
S&T Bancorp Inc	61,263		1,923		Career Education Corp ^(a)	112,909		812


Schedule of Investments
SmallCap S&P 600 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Commercial Services (continued)					Diversified Financial Services (continued)
CDI Corp	24,147	$	149		Investment Technology Group Inc	54,852	$	840
CorVel Corp ^(a)	17,538		606		Piper Jaffray Cos ^(a)	25,094		1,419
Cross Country Healthcare Inc ^(a)	57,875		647		PRA Group Inc ^(a)	81,315		2,594
Forrester Research Inc	17,429		649		Virtus Investment Partners Inc	10,021		1,075
Green Dot Corp ^(a)	75,194		1,669		WageWorks Inc ^(a)	64,211		3,785
Healthcare Services Group Inc	127,140		4,700		World Acceptance Corp ^(a)	10,487		498
HealthEquity Inc ^(a)	75,420		2,506				$	23,827
Heidrick & Struggles International Inc	32,603		603		Electric - 1.18%
HMS Holdings Corp ^(a)	148,162		3,122		ALLETE Inc	86,642		5,310
Insperity Inc	33,410		2,513		Avista Corp	111,779		4,628
Kelly Services Inc	51,078		957		El Paso Electric Co	71,098		3,285
Korn/Ferry International	100,538		2,050				$	13,223
Landauer Inc	16,850		733		Electrical Components & Equipment - 1.21%
LendingTree Inc ^(a)	12,612		1,007		Advanced Energy Industries Inc ^(a)	69,616		3,321
LSC Communications Inc	45,948		1,114		Encore Wire Corp	36,313		1,240
Matthews International Corp	56,345		3,375		General Cable Corp	86,483		1,211
Medifast Inc	19,541		802		Littelfuse Inc	39,396		5,496
Monro Muffler Brake Inc	56,654		3,116		Powell Industries Inc	14,992		530
Monster Worldwide Inc ^(a)	156,273		533		SPX Corp ^(a)	73,268		1,393
Navigant Consulting Inc ^(a)	83,168		1,946		Vicor Corp ^(a)	28,017		357
Nutrisystem Inc	51,813		1,643				$	13,548
On Assignment Inc ^(a)	86,116		2,963
					Electronics - 3.80%
Rent-A-Center Inc/TX	93,197		940		Badger Meter Inc	51,053		1,641
Resources Connection Inc	63,597		944		Bel Fuse Inc	15,247		364
RR Donnelley & Sons Co	122,529		2,175		Benchmark Electronics Inc ^(a)	85,924		2,161
Strayer Education Inc ^(a)	18,298		1,073
					Brady Corp	81,975		2,713
(a)
Team Inc	51,456		1,582		Coherent Inc ^(a)	42,677		4,444
TrueBlue Inc ^(a)	74,527		1,304
					CTS Corp	57,478		1,046
Viad Corp	35,592		1,477		Electro Scientific Industries Inc ^(a)	55,221		286
		$	64,033		ESCO Technologies Inc	45,123		2,010
Computers - 2.54%					FARO Technologies Inc ^(a)	29,256		982
Agilysys Inc ^(a)	26,161		253		II-VI Inc ^(a)	95,615		2,658
CACI International Inc ^(a)	42,677		4,176		Itron Inc ^(a)	58,376		3,146
Ciber Inc ^(a)	129,674		132
					Methode Electronics Inc	64,838		2,023
Cray Inc ^(a)	71,459		1,487		OSI Systems Inc ^(a)	31,597		2,216
Electronics For Imaging Inc ^(a)	81,971		3,486		Park Electrochemical Corp	33,374		515
Engility Holdings Inc ^(a)	30,970		890		Plexus Corp ^(a)	58,661		2,687
ExlService Holdings Inc ^(a)	58,779		2,588		Rofin-Sinar Technologies Inc ^(a)	49,855		1,623
Insight Enterprises Inc ^(a)	62,237		1,792		Rogers Corp ^(a)	31,654		1,723
Lumentum Holdings Inc ^(a)	95,932		3,223		Sanmina Corp ^(a)	129,676		3,586
Mercury Systems Inc ^(a)	70,816		1,967		TASER International Inc ^(a)	91,578		2,050
MTS Systems Corp	29,257		1,391		TTM Technologies Inc ^(a)	126,648		1,665
Qualys Inc ^(a)	50,274		1,873
					Watts Water Technologies Inc	48,883		2,933
Super Micro Computer Inc ^(a)	66,590		1,578
							$	42,472
Sykes Enterprises Inc ^(a)	69,481		1,858
					Energy - Alternate Sources - 0.26%
TeleTech Holdings Inc	28,183		792		FutureFuel Corp	39,890		437
Virtusa Corp ^(a)	48,215		913
					Green Plains Inc	62,407		1,623
		$	28,399		REX American Resources Corp ^(a)	9,932		784
Consumer Products - 0.40%							$	2,844
Central Garden & Pet Co ^(a)	17,550		427
					Engineering & Construction - 0.79%

Central Garden & Pet Co - A Shares(a)	58,792		1,372		Aegion Corp ^(a)	60,711		1,124
WD-40 Co	24,980		2,663		Comfort Systems USA Inc	65,146		1,880
		$	4,462		Exponent Inc	45,591		2,610
Cosmetics & Personal Care - 0.09%					MYR Group Inc ^(a)	28,168		841
Inter Parfums Inc	29,974		977		Orion Group Holdings Inc ^(a)	48,568		392
					TopBuild Corp ^(a)	67,453		2,032
Distribution & Wholesale - 1.02%							$	8,879
Anixter International Inc ^(a)	49,874		3,279
					Entertainment - 0.34%
Core-Mark Holding Co Inc	81,177		2,870		Marriott Vacations Worldwide Corp	42,614		2,709
Essendant Inc	65,441		1,005		Scientific Games Corp ^(a)	89,070		1,105
G-III Apparel Group Ltd ^(a)	72,257		1,887
ScanSource Inc ^(a)	44,963		1,574				$	3,814
Veritiv Corp ^(a)	14,318		772		Environmental Control - 0.49%
					Tetra Tech Inc	100,767		3,875
		$	11,387		US Ecology Inc	38,204		1,614
Diversified Financial Services - 2.13%							$	5,489
Calamos Asset Management Inc	29,178		189
Encore Capital Group Inc ^(a)	41,192		818		Food - 2.05%
Enova International Inc ^(a)	40,795		383		B&G Foods Inc	116,516		4,940
					Calavo Growers Inc	26,920		1,592
Evercore Partners Inc - Class A	68,059		3,658		Cal-Maine Foods Inc	52,181		2,017
Financial Engines Inc	93,234		2,578		Darling Ingredients Inc ^(a)	288,794		3,928
Greenhill & Co Inc	48,325		1,133		J&J Snack Foods Corp	26,190		3,199
Interactive Brokers Group Inc - A Shares	118,028		3,917
INTL. FCStone Inc ^(a)	26,170		940		Sanderson Farms Inc	34,863		3,137
					Seneca Foods Corp - Class A ^(a)	10,955		322


Schedule of Investments
SmallCap S&P 600 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Food (continued)					Home Furnishings - 1.15%
SpartanNash Co	65,741	$	1,841		American Woodmark Corp ^(a)	24,604	$	1,838
SUPERVALU Inc ^(a)	466,325		2,000		Daktronics Inc	70,051		585
		$	22,976		DTS Inc/CA	30,949		1,311
Forest Products & Paper - 0.77%					Ethan Allen Interiors Inc	44,790		1,375
Clearwater Paper Corp ^(a)	29,816		1,583		iRobot Corp ^(a)	47,690		2,418
Deltic Timber Corp ^(b)	18,545		1,042		La-Z-Boy Inc	86,271		2,019
Neenah Paper Inc	29,442		2,352		Select Comfort Corp ^(a)	80,587		1,546
PH Glatfelter Co	76,409		1,698		Universal Electronics Inc ^(a)	25,394		1,781
Schweitzer-Mauduit International Inc	53,614		1,979				$	12,873
		$	8,654		Insurance - 3.01%
Gas - 1.07%					American Equity Investment Life Holding Co	154,401		2,768
Northwest Natural Gas Co	48,339		2,842		AMERISAFE Inc	33,690		1,873
South Jersey Industries Inc	139,453		4,135		eHealth Inc ^(a)	29,072		228
Spire Inc	80,081		5,029		Employers Holdings Inc	56,916		1,784
		$	12,006		HCI Group Inc	15,128		410
Hand & Machine Tools - 0.22%					Horace Mann Educators Corp	70,471		2,533
Franklin Electric Co Inc	67,303		2,453		Infinity Property & Casualty Corp	19,413		1,591
					Maiden Holdings Ltd	110,391		1,507
Healthcare - Products - 4.13%					Navigators Group Inc/The	19,412		1,809
Abaxis Inc	39,536		1,887		ProAssurance Corp	93,352		4,976
Analogic Corp	21,714		1,777		RLI Corp	66,853		3,726
AngioDynamics Inc ^(a)	50,486		805		Safety Insurance Group Inc	25,000		1,693
BioTelemetry Inc ^(a)	49,172		870		Selective Insurance Group Inc	101,437		3,748
Cantel Medical Corp	63,661		4,535		Stewart Information Services Corp	41,006		1,843
CONMED Corp	43,440		1,738		United Fire Group Inc	37,875		1,497
CryoLife Inc	47,125		801		United Insurance Holdings Corp	31,140		452
Cynosure Inc ^(a)	41,639		1,776		Universal Insurance Holdings Inc	57,240		1,219
Haemonetics Corp ^(a)	90,006		3,007				$	33,657
ICU Medical Inc ^(a)	25,475		3,549		Internet - 1.82%
Inogen Inc ^(a)	27,855		1,495		8x8 Inc ^(a)	157,355		2,242
Integer Holdings Corp ^(a)	48,098		1,060		Blucora Inc ^(a)	67,018		891
Integra LifeSciences Holdings Corp ^(a)	52,442		4,170		Blue Nile Inc	20,383		712
Invacare Corp	55,691		509		Cogent Communications Holdings Inc	71,969		2,656
Luminex Corp ^(a)	69,534		1,448		DHI Group Inc ^(a)	87,885		501
Masimo Corp ^(a)	77,066		4,239		ePlus Inc ^(a)	11,576		1,060
Meridian Bioscience Inc	73,845		1,215		FTD Cos Inc ^(a)	30,255		609
Merit Medical Systems Inc ^(a)	77,892		1,710		HealthStream Inc ^(a)	44,551		1,202
MiMedx Group Inc ^(a)	177,633		1,583		Liquidity Services Inc ^(a)	42,072		372
Natus Medical Inc ^(a)	57,816		2,275		NIC Inc	108,816		2,497
Repligen Corp ^(a)	59,282		1,694		Perficient Inc ^(a)	63,348		1,179
Surmodics Inc ^(a)	22,890		570		QuinStreet Inc ^(a)	63,415		184
Vascular Solutions Inc ^(a)	30,691		1,399		Shutterstock Inc ^(a)	33,791		1,993
Zeltiq Aesthetics Inc ^(a)	62,576		2,071		Stamps.com Inc ^(a)	28,177		2,749
		$	46,183		VASCO Data Security International Inc ^(a)	52,899		727
					XO Group Inc ^(a)	43,616		803
Healthcare - Services - 2.20%
Adeptus Health Inc ^(a)	26,394		795				$	20,377
Air Methods Corp ^(a)	60,809		1,608		Iron & Steel - 0.25%
Almost Family Inc ^(a)	15,673		615		AK Steel Holding Corp ^(a)	531,712		2,765
Amedisys Inc ^(a)	48,854		2,114
Chemed Corp	28,409		4,018		Leisure Products & Services - 0.35%
Community Health Systems Inc ^(a)	199,387		1,053		Arctic Cat Inc	22,894		343
Ensign Group Inc/The	83,259		1,538		Callaway Golf Co	164,987		1,684
Healthways Inc ^(a)	55,437		1,375		Fox Factory Holding Corp ^(a)	41,935		910
Kindred Healthcare Inc	149,585		1,473		Nautilus Inc ^(a)	54,578		961
LHC Group Inc ^(a)	26,117		895				$	3,898
Magellan Health Inc ^(a)	43,130		2,219		Lodging - 0.79%
Providence Service Corp/The ^(a)	21,878		885		Belmond Ltd ^(a)	148,165		1,919
Quorum Health Corp ^(a)	51,737		209		Boyd Gaming Corp ^(a)	143,809		2,568
Select Medical Holdings Corp ^(a)	186,852		2,429		ILG Inc	186,622		3,057
Surgical Care Affiliates Inc ^(a)	48,675		2,083		Marcus Corp/The	33,091		877
US Physical Therapy Inc	21,968		1,250		MonarchCasino&Resort Inc ^(a)	19,142		453
		$	24,559				$	8,874
Home Builders - 0.91%					Machinery - Construction & Mining - 0.17%
Cavco Industries Inc ^(a)	14,798		1,367		Astec Industries Inc	33,554		1,858
Installed Building Products Inc ^(a)	34,804		1,150
LGI Homes Inc ^(a)	29,509		878		Machinery - Diversified - 1.37%
M/I Homes Inc ^(a)	43,284		931		Alamo Group Inc	16,543		1,074
MDC Holdings Inc	68,828		1,632		Albany International Corp	50,707		2,066
Meritage Homes Corp ^(a)	66,002		2,043		Applied Industrial Technologies Inc	68,529		3,481
WCI Communities Inc ^(a)	38,356		888		Briggs & Stratton Corp	75,644		1,409
Winnebago Industries Inc	47,188		1,333		Chart Industries Inc ^(a)	53,678		1,489
		$	10,222		DXP Enterprises Inc ^(a)	26,021		567
					Lindsay Corp	18,651		1,460


Schedule of Investments
SmallCap S&P 600 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Machinery - Diversified (continued)					Packaging & Containers - 0.38%
SPX FLOW Inc ^(a)	73,349	$	1,840		KapStone Paper and Packaging Corp	154,194	$	2,797
Tennant Co	30,856		1,943		Multi-Color Corp	23,083		1,499
		$	15,329				$	4,296
Media - 0.90%					Pharmaceuticals - 2.05%
EW Scripps Co/The ^(a)	100,509		1,333		Amphastar Pharmaceuticals Inc ^(a)	61,752		1,120
Gannett Co Inc	204,481		1,589		Anika Therapeutics Inc ^(a)	25,930		1,150
Scholastic Corp	46,987		1,797		Depomed Inc ^(a)	107,673		2,408
TiVo Corp ^(a)	213,681		4,241		Diplomat Pharmacy Inc ^(a)	75,703		1,754
World Wrestling Entertainment Inc	64,747		1,145		Eagle Pharmaceuticals Inc/DE ^(a)	13,991		782
		$	10,105		Enanta Pharmaceuticals Inc ^(a)	24,382		573
Metal Fabrication & Hardware - 0.57%					Impax Laboratories Inc ^(a)	129,593		2,605
CIRCOR International Inc	28,816		1,550		Lannett Co Inc ^(a)	51,137		1,120
Haynes International Inc	21,916		705		Nektar Therapeutics ^(a)	262,720		3,258
Mueller Industries Inc	100,316		3,039		Neogen Corp ^(a)	65,929		3,474
Olympic Steel Inc	15,959		368		PharMerica Corp ^(a)	53,980		1,285
TimkenSteel Corp ^(a)	68,279		700		Phibro Animal Health Corp	32,495		843
		$	6,362		SciClone Pharmaceuticals Inc ^(a)	87,623		784
					Supernus Pharmaceuticals Inc ^(a)	86,867		1,720
Mining - 1.07%
Century Aluminum Co ^(a)	87,086		637				$	22,876
Kaiser Aluminum Corp	31,556		2,287		Real Estate - 0.31%
Materion Corp	35,033		1,061		Forestar Group Inc ^(a)	46,607		513
Stillwater Mining Co ^(a)	212,440		2,830		HFF Inc	61,474		1,637
US Silica Holdings Inc	111,185		5,136		RE/MAX Holdings Inc	30,962		1,345
		$	11,951				$	3,495
Miscellaneous Manufacturers - 2.92%					REITS - 6.15%
Actuant Corp	103,399		2,306		Acadia Realty Trust	139,724		4,707
AZZ Inc	45,500		2,423		Agree Realty Corp	44,265		2,140
Barnes Group Inc	87,865		3,500		American Assets Trust Inc	70,117		2,784
EnPro Industries Inc	37,741		2,043		Capstead Mortgage Corp	168,423		1,602
Fabrinet ^(a)	63,523		2,411		CareTrust REIT Inc	101,585		1,430
Federal Signal Corp	105,158		1,291		Cedar Realty Trust Inc	133,268		902
Harsco Corp	140,675		1,372		Chesapeake Lodging Trust	105,454		2,289
Hillenbrand Inc	110,734		3,361		CoreSite Realty Corp	59,528		4,390
John Bean Technologies Corp	51,155		4,085		DiamondRock Hospitality Co	352,481		3,225
LSB Industries Inc ^(a)	35,291		187		EastGroup Properties Inc	57,705		3,919
Lydall Inc ^(a)	30,075		1,406		Education Realty Trust Inc	1		—
Myers Industries Inc	38,292		461		Four Corners Property Trust Inc	105,076		2,110
Proto Labs Inc ^(a)	42,649		1,906		Franklin Street Properties Corp	186,535		2,158
Raven Industries Inc	63,444		1,361		GEO Group Inc/The	131,581		3,153
Standex International Corp	22,420		1,713		Getty Realty Corp	46,190		1,050
Sturm Ruger & Co Inc	33,288		2,047		Government Properties Income Trust	124,821		2,389
Tredegar Corp	44,442		822		Kite Realty Group Trust	146,308		3,647
		$	32,695		Lexington Realty Trust	374,221		3,795
Office Furnishings - 0.16%					LTC Properties Inc	68,818		3,449
					Parkway Inc ^(a)	74,866		1,349
Interface Inc	113,711		1,802
					Pennsylvania Real Estate Investment Trust	121,971		2,380
Oil & Gas - 1.38%					PS Business Parks Inc	34,216		3,757
Atwood Oceanics Inc	105,739		807		Retail Opportunity Investments Corp	191,022		3,841
Bill Barrett Corp ^(a)	105,643		548		Sabra Health Care REIT Inc	114,554		2,669
Carrizo Oil & Gas Inc ^(a)	106,840		3,614		Saul Centers Inc	20,652		1,249
Contango Oil & Gas Co ^(a)	38,903		305		Summit Hotel Properties Inc	153,134		1,989
Northern Oil and Gas Inc ^(a)	78,204		164		Universal Health Realty Income Trust	21,936		1,288
PDC Energy Inc ^(a)	98,677		6,052		Urstadt Biddle Properties Inc	50,598		1,088
Synergy Resources Corp ^(a)	351,814		2,407				$	68,749
Unit Corp ^(a)	90,369		1,548		Retail - 6.18%
		$	15,445		Abercrombie & Fitch Co	118,718		1,734
					Asbury Automotive Group Inc ^(a)	34,611		1,763
Oil & Gas Services - 1.04%
					Barnes & Noble Education Inc ^(a)	67,439		628
Archrock Inc	122,173		1,417
Bristow Group Inc	55,984		560		Barnes & Noble Inc	98,049		1,010
CARBO Ceramics Inc ^(a)	32,159		196		Big 5 Sporting Goods Corp	31,301		485
Era Group Inc ^(a)	34,070		257		Biglari Holdings Inc ^(a)	1,777		779
Exterran Corp ^(a)	54,875		868		BJ's Restaurants Inc ^(a)	35,204		1,271
Flotek Industries Inc ^(a)	94,358		1,112		Bob Evans Farms Inc/DE	34,683		1,430
Geospace Technologies Corp ^(a)	23,385		431		Buckle Inc/The	48,954		1,021
Gulf Island Fabrication Inc	23,620		236		Caleres Inc	76,143		1,904
Helix Energy Solutions Group Inc ^(a)	183,802		1,603		Cato Corp/The	45,680		1,355
Matrix Service Co ^(a)	46,532		824		Children's Place Inc/The	32,204		2,446
Newpark Resources Inc ^(a)	148,299		934		Chuy's Holdings Inc ^(a)	29,468		837
Pioneer Energy Services Corp ^(a)	113,447		403		Dave & Buster's Entertainment Inc ^(a)	65,207		2,696
SEACOR Holdings Inc ^(a)	28,263		1,394		DineEquity Inc	30,039		2,376
					El Pollo Loco Holdings Inc ^(a)	37,750		461
Tesco Corp	81,420		558
TETRA Technologies Inc ^(a)	162,662		886		Express Inc ^(a)	137,571		1,654
					EZCORP Inc ^(a)	85,028		829
		$	11,679


Schedule of Investments
SmallCap S&P 600 Index Fund
October 31, 2016



COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Retail (continued)					Software (continued)
Fiesta Restaurant Group Inc ^(a)	47,235	$	1,247		Digi International Inc ^(a)	45,552	$	417
Finish Line Inc/The	72,721		1,432		Donnelley Financial Solutions Inc ^(a)	45,948		986
FirstCash Inc	84,933		4,009		Ebix Inc	39,323		2,202
Five Below Inc ^(a)	96,275		3,618		Interactive Intelligence Group Inc ^(a)	31,215		1,887
Francesca's Holdings Corp ^(a)	66,534		1,069		LivePerson Inc ^(a)	93,269		793
Fred's Inc	61,501		561		ManTech International Corp/VA	43,942		1,706
Genesco Inc ^(a)	36,386		1,958		Medidata Solutions Inc ^(a)	95,828		4,599
Group 1 Automotive Inc	34,845		2,100		MicroStrategy Inc ^(a)	16,486		3,212
Haverty Furniture Cos Inc	33,472		594		Monotype Imaging Holdings Inc	71,605		1,368
Hibbett Sports Inc ^(a)	39,266		1,525		Omnicell Inc ^(a)	63,449		2,070
Kirkland's Inc ^(a)	25,652		313		Progress Software Corp	85,058		2,289
Lithia Motors Inc	41,059		3,522		Quality Systems Inc	79,860		1,029
Lumber Liquidators Holdings Inc ^(a)	47,624		739		SPS Commerce Inc ^(a)	29,789		1,858
MarineMax Inc ^(a)	42,614		850		Synchronoss Technologies Inc ^(a)	73,650		2,704
Movado Group Inc	26,894		593		Take-Two Interactive Software Inc ^(a)	150,922		6,699
Ollie's Bargain Outlet Holdings Inc ^(a)	83,170		2,275		Tangoe Inc ^(a)	40,820		350
Papa John's International Inc	46,722		3,525				$	43,418
PetMed Express Inc	36,016		716		Storage & Warehousing - 0.18%
Popeyes Louisiana Kitchen Inc ^(a)	37,327		1,993		Mobile Mini Inc	77,974		1,977
Red Robin Gourmet Burgers Inc ^(a)	23,315		1,072
Regis Corp ^(a)	61,547		780		Telecommunications - 2.16%
Ruby Tuesday Inc ^(a)	105,516		313		ADTRAN Inc	84,921		1,541
Ruth's Hospitality Group Inc	53,336		845		ATN International Inc	18,704		1,265
Shoe Carnival Inc	24,813		629		Black Box Corp	26,578		306
Sonic Automotive Inc	46,910		840		CalAmp Corp ^(a)	63,599		822
Sonic Corp	83,420		1,911		Cincinnati Bell Inc ^(a)	73,754		1,449
Stage Stores Inc	44,172		225		Comtech Telecommunications Corp	40,910		425
Stein Mart Inc	54,314		327		Consolidated Communications Holdings Inc	88,880		2,127
Tailored Brands Inc	85,354		1,349		General Communication Inc ^(a)	48,270		765
Tile Shop Holdings Inc ^(a)	57,850		981		Harmonic Inc ^(a)	136,911		698
Tuesday Morning Corp ^(a)	78,171		387		Inteliquent Inc	60,065		1,008
Vera Bradley Inc ^(a)	34,309		459		Iridium Communications Inc ^(a)	140,943		1,149
Vitamin Shoppe Inc ^(a)	42,112		1,055		Ixia ^(a)	109,852		1,313
Zumiez Inc ^(a)	30,896		687		LogMeIn Inc	44,403		4,218
		$	69,178		Lumos Networks Corp ^(a)	41,170		585
Savings & Loans - 1.80%					NETGEAR Inc ^(a)	57,483		2,903
Astoria Financial Corp	160,032		2,341		Spok Holdings Inc	36,050		651
Banc of California Inc	86,963		1,157		Viavi Solutions Inc ^(a)	407,591		2,902
Bank Mutual Corp	73,593		574				$	24,127
BofI Holding Inc ^(a)	101,022		1,882		Textiles - 0.59%
Brookline Bancorp Inc	123,730		1,584		G&K Services Inc	34,535		3,271
Dime Community Bancshares Inc	55,030		891		UniFirst Corp/MA	27,032		3,311
Northfield Bancorp Inc	78,885		1,298				$	6,582
Northwest Bancshares Inc	179,880		2,831		Transportation - 1.73%
Oritani Financial Corp	66,688		1,044		ArcBest Corp	42,018		836
Provident Financial Services Inc	105,099		2,385		Atlas Air Worldwide Holdings Inc ^(a)	43,566		1,823
Sterling Bancorp/DE	229,250		4,126		Celadon Group Inc	48,452		315
		$	20,113		Echo Global Logistics Inc ^(a)	48,335		1,025
Semiconductors - 2.72%					Forward Air Corp	53,087		2,194
Brooks Automation Inc	120,428		1,569		Heartland Express Inc	75,989		1,398
Cabot Microelectronics Corp	42,352		2,340		Hornbeck Offshore Services Inc ^(a)	56,743		225
CEVA Inc ^(a)	36,777		1,105		Hub Group Inc ^(a)	58,888		2,146
Cohu Inc	43,530		487		Knight Transportation Inc	116,532		3,409
Diodes Inc ^(a)	67,661		1,401		Marten Transport Ltd	40,462		829
DSP Group Inc ^(a)	38,415		419		Matson Inc	75,375		3,010
Exar Corp ^(a)	73,066		659		Roadrunner Transportation Systems Inc ^(a)	53,126		404
Kopin Corp ^(a)	106,611		223		Saia Inc ^(a)	44,228		1,577
Kulicke & Soffa Industries Inc ^(a)	123,528		1,635		Tidewater Inc	82,585		143
MKS Instruments Inc	93,996		4,742				$	19,334
Nanometrics Inc ^(a)	43,502		909
					Trucking & Leasing - 0.14%
Power Integrations Inc	50,687		3,267		Greenbrier Cos Inc/The	49,487		1,559
Rambus Inc ^(a)	192,826		2,351
Rudolph Technologies Inc ^(a)	54,287		983
					Water - 0.46%
Semtech Corp ^(a)	115,044		2,784		American States Water Co	64,144		2,565
Tessera Technologies Inc	85,226		3,162		California Water Service Group	84,169		2,609
Ultratech Inc ^(a)	41,326		880
							$	5,174
Veeco Instruments Inc ^(a)	71,304		1,547
					TOTAL COMMON STOCKS		$	1,099,888
		$	30,463		INVESTMENT COMPANIES - 1.80%	Shares Held		Value(000	's)
Software - 3.88%					Exchange Traded Funds - 0.34%
Blackbaud Inc	83,376		5,119		iShares Core S&P Small-Cap ETF	32,322		3,836
Bottomline Technologies de Inc ^(a)	65,290		1,481
Computer Programs & Systems Inc	18,758		490
CSG Systems International Inc	56,768		2,159


				Schedule of Investments
SmallCap S&P 600 Index Fund
October 31, 2016



INVESTMENT COMPANIES (continued)		Shares Held	Value (000's)
Money Market Funds - 1.46%
BlackRock Liquidity Funds FedFund Portfolio		16,293,444	$	16,293

TOTAL INVESTMENT COMPANIES			$	20,129
Total Investments			$	1,120,017
Other Assets and Liabilities - (0.11)%			$	(1,213	)
TOTAL NET ASSETS - 100.00%			$	1,118,804


(a)	Non-Income Producing Security
(b)	Security is Illiquid. At the end of the period, the value of these securities
	totaled $1,042 or 0.09% of net assets.



	Portfolio Summary (unaudited)
Sector				Percent
Financial				22.58	%
Consumer, Non-cyclical				18.47	%
Industrial				17.44	%
Consumer, Cyclical				15.03	%
Technology				9.14	%
Basic Materials				5.21	%
Communications				4.89	%
Energy				2.84	%
Utilities				2.71	%
Investment Companies				1.80	%
Other Assets and Liabilities				(0.11	)%
TOTAL NET ASSETS				100.00	%

Futures Contracts

										Unrealized
Type		Long/Short Contracts				Notional Value		Fair Value	Appreciation/(Depreciation)
Russell 2000 Mini; December 2016		Long		126	$	15,332	$	15,010	$	(322	)
Total								$		(322	)

Amounts in thousands except contracts


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS - 94.33%	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000		's)
Advertising - 0.02%					Automobile Parts & Equipment (continued)
EVINE Live Inc ^(a)	5,584	$	12		Strattec Security Corp	2,040	$		72
Harte-Hanks Inc	38,509		54		Superior Industries International Inc	47,818			1,172
Marchex Inc ^(a)	24,854		63		Supreme Industries Inc	17,712			216
MDC Partners Inc	6,254		53		Titan International Inc	63,849			652
		$	182		Tower International Inc	3,849			84
Aerospace & Defense - 0.85%					Visteon Corp	4,280			302
AAR Corp	51,134		1,645				$		7,236
Aerojet Rocketdyne Holdings Inc ^(a)	14,385		253		Banks - 12.86%
Aerovironment Inc ^(a)	10,489		252		1st Constitution Bancorp	926			13
Arotech Corp ^(a)	9,039		24		1st Source Corp	29,519			1,020
Cubic Corp	21,341		911		Access National Corp	1,684			40
Curtiss-Wright Corp	18,903		1,695		ACNB Corp	1,235			33
Ducommun Inc ^(a)	17,055		325		Allegiance Bancshares Inc ^(a)	1,983			52
Esterline Technologies Corp ^(a)	40,404		2,968		American National Bankshares Inc	2,113			57
Kaman Corp	6,786		296		American River Bankshares ^(a)	5,499			67
KLX Inc ^(a)	7,221		249		Ameris Bancorp	1,196			43
Kratos Defense & Security Solutions Inc ^(a)	69,334		390		AmeriServ Financial Inc	22,099			72
LMI Aerospace Inc ^(a)	971		7		Ames National Corp	1,738			47
Moog Inc ^(a)	9,816		569		Arrow Financial Corp	6,143			195
National Presto Industries Inc	837		73		ASB Bancorp Inc ^(a)	600			16
SIFCO Industries Inc ^(a)	610		6		Associated Banc-Corp	126,340			2,565
Teledyne Technologies Inc ^(a)	4,681		504		BancFirst Corp	1,466			105
Triumph Group Inc	6,752		160		Bancorp Inc/The ^(a)	24,659			154
		$	10,327		BancorpSouth Inc	49,912			1,173
Agriculture - 0.25%					Bank of Commerce Holdings	1,302			10
					Bank of Florida Corp ^(a),(b),(c)	6,269			—
Alico Inc	1,485		39
Alliance One International Inc ^(a)	9,102		135		Bank of Marin Bancorp	1,174			60
Andersons Inc/The	19,208		731		Bankwell Financial Group Inc	1,139			28
Limoneira Co	324		6		Banner Corp	21,666			978
Tejon Ranch Co ^(a)	2,986		67		Bar Harbor Bankshares	1,676			61
Turning Point Brands Inc ^(a)	749		9		BCB Bancorp Inc	1,563			18
Universal Corp/VA	34,199		1,854		Blue Hills Bancorp Inc	7,015			109
Vector Group Ltd	8,615		180		BNC Bancorp	5,124			128
		$	3,021		Boston Private Financial Holdings Inc	68,335			899
Airlines - 0.31%					Bridge Bancorp Inc	3,008			83
Copa Holdings SA	19,923		1,837		Bryn Mawr Bank Corp	7,158			225
SkyWest Inc	63,355		1,910		C&F Financial Corp	723			30
Virgin America Inc ^(a)	142		8		Camden National Corp	3,185			105
		$	3,755		Capital Bank Financial Corp	1,277			42
					Capital City Bank Group Inc	14,309			215
Apparel - 0.74%
Deckers Outdoor Corp ^(a)	20,239		1,056		Cardinal Financial Corp	15,059			395
					Carolina Bank Holdings Inc ^(a)	378			8
Delta Apparel Inc ^(a)	8,506		140
Iconix Brand Group Inc ^(a)	55,294		436		Carolina Financial Corp	2,043			47
					Cascade Bancorp ^(a)	20,275			124
Lakeland Industries Inc ^(a)	6,346		63
Perry Ellis International Inc ^(a)	22,537		419		Cass Information Systems Inc	1,171			63
					Cathay General Bancorp	39,408			1,181
Rocky Brands Inc	8,535		91
Sequential Brands Group Inc ^(a)	11,212		81		CenterState Banks Inc	10,874			203
Steven Madden Ltd ^(a)	140,750		4,701		Central Pacific Financial Corp	22,089			566
					Central Valley Community Bancorp	2,208			32
Superior Uniform Group Inc	8,321		148
Unifi Inc ^(a)	22,865		658		Century Bancorp Inc/MA	771			35
Vince Holding Corp ^(a)	3,551		19		Chemical Financial Corp	30,669			1,317
					Chemung Financial Corp	783			22
Weyco Group Inc	1,659		42
					Citizens & Northern Corp	8,037			168
Wolverine World Wide Inc	52,538		1,122
					Citizens First Corp	300			5
		$	8,976
					City Holding Co	1,962			103
Automobile Manufacturers - 0.03%					CNB Financial Corp/PA	4,359			86
Blue Bird Corp ^(a)	1,368		20
Navistar International Corp ^(a)	6,305		141		Codorus Valley Bancorp Inc	2,308			48
					Colony Bankcorp Inc ^(a)	706			7
Wabash National Corp ^(a)	19,589		221
Workhorse Group Inc ^(a)	375		2		Columbia Banking System Inc	7,937			262
					Community Bank System Inc	17,291			814
		$	384		Community Trust Bancorp Inc	3,339			122
Automobile Parts & Equipment - 0.59%					Community West Bancshares	1,308			11
Cooper Tire & Rubber Co	28,515		1,048		ConnectOne Bancorp Inc	14,987			275
Cooper-Standard Holding Inc ^(a)	635		58
					County Bancorp Inc	614			12
Dana Inc	59,079		915		CU Bancorp ^(a)	4,499			106
Douglas Dynamics Inc	1,818		58		Customers Bancorp Inc ^(a)	8,085			219
Federal-Mogul Holdings Corp ^(a)	73,074		676
					CVB Financial Corp	13,924			234

Meritor Inc(a)	11,322		116		Eagle Bancorp Inc ^(a)	1,614			80
Metaldyne Performance Group Inc	1,441		22		Eastern Virginia Bankshares Inc	851			7
Miller Industries Inc/TN	18,895		415		Enterprise Bancorp Inc/MA	1,698			44
Modine Manufacturing Co ^(a)	53,052		581
					Enterprise Financial Services Corp	5,376			178

Motorcar Parts of America Inc(a)	351		9		Equity Bancshares Inc ^(a)	1,153			30
Spartan Motors Inc	63,570		543		Evans Bancorp Inc	387			11
Standard Motor Products Inc	6,089		297		Farmers Capital Bank Corp	6,036			190


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Banks (continued)					Banks (continued)
Farmers National Banc Corp	5,064	$	53		Northeast Bancorp	1,364	$	15
FCB Financial Holdings Inc ^(a)	7,241		270		Northrim BanCorp Inc	5,693		140
Fidelity Southern Corp	7,344		134		OFG Bancorp	97,970		1,043
Financial Institutions Inc	14,517		390		Old Line Bancshares Inc	1,785		35
First Bancorp Inc/ME	1,979		47		Old National Bancorp/IN	481,678		7,081
First BanCorp/Puerto Rico ^(a)	116,984		600		Old Second Bancorp Inc	17,506		135
First Bancorp/Southern Pines NC	17,758		351		Opus Bank	4,267		85
First Bancshares Inc/The	1,620		35		Orrstown Financial Services Inc	1,417		30
First Busey Corp	24,083		557		Pacific Continental Corp	6,153		106
First Business Financial Services Inc	5,942		112		Park National Corp	1,823		177
First Citizens BancShares Inc/NC	1,381		402		Park Sterling Corp	37,786		325
First Commonwealth Financial Corp	137,201		1,394		Patriot National Bancorp Inc ^(a)	212		3
First Community Bancshares Inc/VA	21,436		485		Peapack Gladstone Financial Corp	6,820		144
First Connecticut Bancorp Inc/Farmington CT	7,799		138		Penns Woods Bancorp Inc	911		39
First Financial Bancorp	444,389		9,554		Peoples Bancorp Inc/OH	16,172		400
First Financial Bankshares Inc	3,270		118		Peoples Bancorp of North Carolina Inc	1,797		37
First Financial Corp/IN	5,893		237		Peoples Financial Services Corp	1,311		52
First Foundation Inc ^(a)	1,614		40		People's Utah Bancorp	2,634		53
First Internet Bancorp	1,063		28		Pinnacle Financial Partners Inc	9,126		471
First Interstate BancSystem Inc	10,639		339		Popular Inc	34,526		1,253
First Merchants Corp	374,581		10,545		Preferred Bank/Los Angeles CA	3,935		149
First Mid-Illinois Bancshares Inc	1,603		42		Premier Financial Bancorp Inc	10,390		174
First Midwest Bancorp Inc/IL	145,606		2,811		PrivateBancorp Inc	10,680		483
First NBC Bank Holding Co ^(a)	31,972		173		Prosperity Bancshares Inc	286,106		15,871
First Northwest Bancorp ^(a)	2,393		33		Provident Bancorp Inc ^(a)	925		15
First of Long Island Corp/The	2,643		84		QCR Holdings Inc	2,319		75
First United Corp ^(a)	1,489		17		Renasant Corp	29,215		985
FNB Corp/PA	169,772		2,219		Republic Bancorp Inc/KY	10,166		321
Franklin Financial Network Inc ^(a)	1,380		45		Republic First Bancorp Inc ^(a)	6,538		26
Fulton Financial Corp	218,009		3,249		S&T Bancorp Inc	26,513		832
German American Bancorp Inc	4,971		193		Sandy Spring Bancorp Inc	34,511		1,093
Glacier Bancorp Inc	24,656		696		SB Financial Group Inc	2,685		34
Great Southern Bancorp Inc	2,225		92		Seacoast Banking Corp of Florida ^(a)	5,481		95
Great Western Bancorp Inc	23,287		750		Select Bancorp Inc ^(a)	2,142		17
Green Bancorp Inc ^(a)	1,100		11		Shore Bancshares Inc	2,797		36
Guaranty Bancorp	5,506		105		Sierra Bancorp	22,431		401
Guaranty Federal Bancshares Inc	541		9		Simmons First National Corp	4,445		219
Hancock Holding Co	81,889		2,748		South State Corp	3,232		237
Hanmi Financial Corp	7,854		196		Southern First Bancshares Inc ^(a)	1,577		41
Hawthorn Bancshares Inc	1,750		25		Southern National Bancorp of Virginia Inc	4,459		59
Heartland Financial USA Inc	7,162		269		Southside Bancshares Inc	3,380		110
Heritage Commerce Corp	10,836		118		Southwest Bancorp Inc	21,921		409
Heritage Financial Corp/WA	11,427		210		State Bank Financial Corp	8,063		178
Heritage Oaks Bancorp	4,853		39		Stock Yards Bancorp Inc	2,869		98
Hilltop Holdings Inc	58,080		1,434		Stonegate Bank	4,765		165
Home BancShares Inc/AR	3,852		83		Suffolk Bancorp	2,075		75
Hope Bancorp Inc	371,817		6,001		Summit Financial Group Inc	1,616		32
Horizon Bancorp/IN	2,465		71		Summit State Bank	804		11
IBERIABANK Corp	44,216		2,903		Sun Bancorp Inc/NJ	1,889		43
Independent Bank Corp/MI	17,811		300		Sussex Bancorp	1,215		20
Independent Bank Corp/Rockland MA	3,549		196		Synovus Financial Corp	7,577		251
Independent Bank Group Inc	2,747		133		TCF Financial Corp	85,513		1,223
International Bancshares Corp	77,570		2,393		Texas Capital Bancshares Inc ^(a)	10,440		619
Kearny Financial Corp/MD	64,544		901		TierOne Corp ^(a),(b),(c)	2,447		—
Lakeland Bancorp Inc	22,078		312		Tompkins Financial Corp	2,896		229
Lakeland Financial Corp	140,807		5,187		Towne Bank/Portsmouth VA	7,721		191
LCNB Corp	1,944		33		TriCo Bancshares	5,652		150
LegacyTexas Financial Group Inc	6,068		208		TriState Capital Holdings Inc ^(a)	11,366		201
Macatawa Bank Corp	11,676		95		Triumph Bancorp Inc ^(a)	2,991		56
MainSource Financial Group Inc	39,160		977		TrustCo Bank Corp NY	24,632		172
MB Financial Inc	73,284		2,667		Trustmark Corp	75,981		2,103
MBT Financial Corp	19,717		174		UMB Financial Corp	6,104		379
Mercantile Bank Corp	11,685		322		Umpqua Holdings Corp	119,588		1,827
Merchants Bancshares Inc/VT	1,251		54		Union Bankshares Corp	360,758		10,076
Mid Penn Bancorp Inc	119		2		Union Bankshares Inc/Morrisville VT	135		4
Middleburg Financial Corp	916		28		United Bancshares Inc/OH	900		18
Midland States Bancorp Inc	919		23		United Bankshares Inc/WV	8,931		337
MidSouth Bancorp Inc	743		8		United Community Banks Inc/GA	15,336		330
MidWestOne Financial Group Inc	2,564		75		United Security Bancshares/Fresno CA ^(a)	1,825		11
National Bank Holdings Corp	20,507		499		Unity Bancorp Inc	181		2
National Bankshares Inc	1,264		44		Univest Corp of Pennsylvania	19,114		454
National Commerce Corp ^(a)	1,733		49		Valley National Bancorp	169,594		1,672
NBT Bancorp Inc	19,222		648		Veritex Holdings Inc ^(a)	1,422		25
Nicolet Bankshares Inc ^(a)	1,314		51		Walker & Dunlop Inc ^(a)	3,677		89


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Banks (continued)					Building Materials (continued)
Washington Trust Bancorp Inc	10,556	$	484		Gibraltar Industries Inc ^(a)	38,731	$	1,506
WashingtonFirst Bankshares Inc	1,665		41		Griffon Corp	51,350		857
Webster Financial Corp	378,719		15,301		Louisiana-Pacific Corp ^(a)	35,346		648
WesBanco Inc	37,124		1,222		LSI Industries Inc	30,640		264
West Bancorporation Inc	3,120		60		Quanex Building Products Corp	26,020		424
Westamerica Bancorporation	3,416		169		Simpson Manufacturing Co Inc	15,992		685
Western New England Bancorp Inc	29,841		235		Universal Forest Products Inc	20,076		1,727
Wintrust Financial Corp	60,645		3,272				$	12,104
Yadkin Financial Corp	6,852		190		Chemicals - 1.10%
		$	156,803		A Schulman Inc	20,558		591
Beverages - 0.03%					Aceto Corp	7,101		130
Craft Brew Alliance Inc ^(a)	9,299		149		AdvanSix Inc ^(a)	127,525		2,035
MGP Ingredients Inc	5,023		177		AgroFresh Solutions Inc ^(a)	4,183		20
		$	326		American Vanguard Corp	49,816		758
Biotechnology - 0.19%					Cabot Corp	3,321		173
Acorda Therapeutics Inc ^(a)	6,530		116		Calgon Carbon Corp	16,232		257
Adverum Biotechnologies Inc ^(a)	3,940		12		Chemours Co/The	7,983		131
Agenus Inc ^(a)	2,155		9		Chemtura Corp ^(a)	4,310		141
AMAG Pharmaceuticals Inc ^(a)	4,228		109		Codexis Inc ^(a)	1,260		6
Aptevo Therapeutics Inc ^(a)	791		2		CSW Industrials Inc ^(a)	2,654		82
Aratana Therapeutics Inc ^(a)	8,745		70		GCP Applied Technologies Inc ^(a)	1,477		38
Ardelyx Inc ^(a)	4,527		56		Hawkins Inc	1,401		57
ARIAD Pharmaceuticals Inc ^(a)	1,848		16		Huntsman Corp	26,600		451
Arrowhead Pharmaceuticals Inc ^(a)	694		4		Ingevity Corp ^(a)	1,121		46
Atara Biotherapeutics Inc ^(a)	3,747		48		Innophos Holdings Inc	7,644		350
Audentes Therapeutics Inc ^(a)	199		3		Innospec Inc	20,776		1,252
Bellicum Pharmaceuticals Inc ^(a)	1,202		20		KMG Chemicals Inc	1,033		28
BioCryst Pharmaceuticals Inc ^(a)	2,440		10		Koppers Holdings Inc ^(a)	1,779		58
Bluebird Bio Inc ^(a)	4,059		194		Kraton Corp ^(a)	30,749		788
Celldex Therapeutics Inc ^(a)	16,369		52		Kronos Worldwide Inc	24,965		191
Cellular Biomedicine Group Inc ^(a)	635		8		Landec Corp ^(a)	27,378		363
Corvus Pharmaceuticals Inc ^(a)	481		6		Minerals Technologies Inc	18,099		1,216
Dimension Therapeutics Inc ^(a)	1,308		6		Oil-Dri Corp of America	991		33
Edge Therapeutics Inc ^(a)	1,711		18		Olin Corp	95,181		2,087
Emergent BioSolutions Inc ^(a)	1,582		42		OMNOVA Solutions Inc ^(a)	3,368		26
Endocyte Inc ^(a)	6,834		19		Platform Specialty Products Corp ^(a)	14,519		106
Enzo Biochem Inc ^(a)	12,542		76		Quaker Chemical Corp	964		104
Epizyme Inc ^(a)	1,978		18		Rayonier Advanced Materials Inc	3,461		45
Esperion Therapeutics Inc ^(a)	2,451		25		Sensient Technologies Corp	2,511		187
Exelixis Inc ^(a)	15,234		161		Stepan Co	9,718		691
Five Prime Therapeutics Inc ^(a)	3,640		177		Tronox Ltd	111,428		903
Harvard Bioscience Inc ^(a)	7,272		17		Valhi Inc	4,398		9
Idera Pharmaceuticals Inc ^(a)	1,268		2				$	13,353
ImmunoGen Inc ^(a)	51,390		93		Coal - 0.16%
Immunomedics Inc ^(a)	1,313		3		Cloud Peak Energy Inc ^(a)	41,497		256
Infinity Pharmaceuticals Inc ^(a)	35,630		43		CONSOL Energy Inc	28,438		482
Innoviva Inc ^(a)	3,856		40		Hallador Energy Co	6,459		57
Karyopharm Therapeutics Inc ^(a)	3,180		23		SunCoke Energy Inc	103,982		1,061
Medicines Co/The ^(a)	773		25		Westmoreland Coal Co ^(a)	3,922		35
Merrimack Pharmaceuticals Inc ^(a)	7,965		42				$	1,891
Momenta Pharmaceuticals Inc ^(a)	11,181		124		Commercial Services - 6.27%
NewLink Genetics Corp ^(a)	1,833		23		Aaron's Inc	97,662		2,413
Otonomy Inc ^(a)	4,116		62		ABM Industries Inc	16,462		643
OvaScience Inc ^(a)	4,651		23		Albany Molecular Research Inc ^(a)	273,114		4,258
PDL BioPharma Inc	38,125		123		AMERCO	7,626		2,459
PTC Therapeutics Inc ^(a)	5,697		35		American Public Education Inc ^(a)	19,560		395
REGENXBIO Inc ^(a)	3,470		55		Apollo Education Group Inc ^(a)	11,412		100
Retrophin Inc ^(a)	6,305		119		ARC Document Solutions Inc ^(a)	29,726		101
Rigel Pharmaceuticals Inc ^(a)	3,392		9		Ascent Capital Group Inc ^(a)	12,169		248
RTI Surgical Inc ^(a)	41,661		106		AstroNova Inc	9,156		133
Selecta Biosciences Inc ^(a)	177		3		Avalon Holdings Corp ^(a)	3,917		10
Spectrum Pharmaceuticals Inc ^(a)	9,475		34		Booz Allen Hamilton Holding Corp	477,625		14,553
Stemline Therapeutics Inc ^(a)	2,248		26		Bridgepoint Education Inc ^(a)	3,435		23
Syndax Pharmaceuticals Inc ^(a)	423		5		CAI International Inc ^(a)	26,552		202
Trovagene Inc ^(a)	397		1		Cambium Learning Group Inc ^(a)	16,138		84
Versartis Inc ^(a)	4,269		47		Capella Education Co	836		61
		$	2,360		Cardtronics PLC ^(a)	3,515		176
Building Materials - 0.99%					Career Education Corp ^(a)	52,380		377
Armstrong Flooring Inc ^(a)	8,745		142		Carriage Services Inc	10,127		240
Boise Cascade Co ^(a)	24,343		469		Cartesian Inc ^(a)	650		—
Continental Building Products Inc ^(a)	192,675		3,940		CBIZ Inc ^(a)	61,956		684
Continental Materials Corp ^(a)	657		14		CDI Corp	13,382		82
Cree Inc ^(a)	64,017		1,428		CEB Inc	7,530		366


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Commercial Services (continued)					Computers (continued)
Civeo Corp ^(a)	5,739	$	7		NCI Inc	1,674	$	20
Cotiviti Holdings Inc ^(a)	149,672		4,620		NetScout Systems Inc ^(a)	42,287		1,160
CPI Card Group Inc	3,274		18		PAR Technology Corp ^(a)	9,256		51
CRA International Inc	11,929		372		Qualstar Corp ^(a)	769		3
Cross Country Healthcare Inc ^(a)	15,622		175		Qumu Corp ^(a)	1,087		3
DeVry Education Group Inc	61,782		1,403		Radisys Corp ^(a)	6,153		26
Edgewater Technology Inc ^(a)	10,657		87		SecureWorks Corp ^(a)	707		8
Ennis Inc	108,373		1,588		Silicon Graphics International Corp ^(a)	20,477		158
Everi Holdings Inc ^(a)	24,616		49		Silver Spring Networks Inc ^(a)	6,435		91
EVERTEC Inc	8,565		129		StarTek Inc ^(a)	11,737		79
Franklin Covey Co ^(a)	6,186		113		Stratasys Ltd ^(a)	3,461		66
FRP Holdings Inc ^(a)	1,871		60		Super Micro Computer Inc ^(a)	10,205		242
FTI Consulting Inc ^(a)	52,694		2,053		Sykes Enterprises Inc ^(a)	59,695		1,596
Graham Holdings Co	857		407		Unisys Corp ^(a)	3,182		33
Great Lakes Dredge & Dock Corp ^(a)	69,145		246		USA Technologies Inc ^(a)	947		4
Green Dot Corp ^(a)	8,875		197		Virtusa Corp ^(a)	156,425		2,963
Hackett Group Inc/The	4,783		77		Vocera Communications Inc ^(a)	24,117		444
Heidrick & Struggles International Inc	16,338		302				$	40,372
Hudson Global Inc	611		1		Consumer Products - 0.30%
Huron Consulting Group Inc ^(a)	4,589		257		ACCO Brands Corp ^(a)	123,654		1,373
ICF International Inc ^(a)	207,564		9,631		Acme United Corp	1,796		39
K12 Inc ^(a)	52,880		573		Central Garden & Pet Co ^(a)	16,880		411
KAR Auction Services Inc	305,200		12,995		Central Garden & Pet Co - A Shares ^(a)	45,831		1,069
Kelly Services Inc	53,987		1,011		CSS Industries Inc	12,898		324
Korn/Ferry International	65,952		1,345		Helen of Troy Ltd ^(a)	4,907		400
Landauer Inc	3,115		136				$	3,616
Liberty Tax Inc	611		7		Cosmetics & Personal Care - 0.15%
McGrath RentCorp	18,731		563		Avon Products Inc	239,819		1,571
MoneyGram International Inc ^(a)	5,518		39		CCA Industries Inc ^(a)	500		2
Monster Worldwide Inc ^(a)	76,897		262		Inter Parfums Inc	1,825		59
National Research Corp	379		6		Revlon Inc ^(a)	6,240		212
Navigant Consulting Inc ^(a)	72,506		1,696
							$	1,844
Neff Corp ^(a)	1,608		15
					Distribution & Wholesale - 1.17%
Perceptron Inc(a)	6,585		41		ADDvantage Technologies Group Inc ^(a)	3,841		7

PFSweb Inc(a)	252		2		Anixter International Inc ^(a)	17,303		1,137
Quad/Graphics Inc	20,736		493		Beacon Roofing Supply Inc ^(a)	9,619		405
Quanta Services Inc ^(a)	27,287		785
					Core-Mark Holding Co Inc	20,232		715
RCM Technologies Inc	13,071		93		Essendant Inc	63,458		974
Rent-A-Center Inc/TX	58,655		592		Fossil Group Inc ^(a)	7,810		213
Resources Connection Inc	25,181		374		G-III Apparel Group Ltd ^(a)	1,161		30
RPX Corp ^(a)	43,980		429
					H&E Equipment Services Inc	3,400		48

ServiceSource International Inc(a)	4,226		20		ScanSource Inc ^(a)	27,336		957
Sotheby's	4,538		163		Systemax Inc	2,788		22
(a)
SP Plus Corp	475		12		Titan Machinery Inc ^(a)	3,294		31
Strayer Education Inc ^(a)	2,553		150
					Triton International Ltd/Bermuda	38,705		467

Team Inc(a)	123,327		3,792		Veritiv Corp ^(a)	3,308		178
Textainer Group Holdings Ltd	3,981		30		WESCO International Inc ^(a)	166,905		9,046
Travelport Worldwide Ltd	3,996		56				$	14,230
TrueBlue Inc ^(a)	9,029		158
Universal Security Instruments Inc ^(a)	1,000		3		Diversified Financial Services - 1.34%
					AeroCentury Corp ^(a)	423		4
Vectrus Inc ^(a)	2,587		43
					Air Lease Corp	54,033		1,635
Viad Corp	26,447		1,098
Volt Information Sciences Inc ^(a)	13,617		89		Aircastle Ltd	45,231		930
Weight Watchers International Inc ^(a)	565		6		Arlington Asset Investment Corp	4,343		62
					Associated Capital Group Inc	3,652		124
		$	76,477		Asta Funding Inc ^(a)	11,856		116
Computers - 3.31%					Atlanticus Holdings Corp ^(a)	14,485		49
Agilysys Inc ^(a)	28,807		278
					Calamos Asset Management Inc	40,194		260
CACI International Inc ^(a)	171,398		16,772
					California First National Bancorp	3,792		53

Ciber Inc(a)	117,638		120		Cowen Group Inc ^(a)	120,477		392

Cogint Inc(a)	2,600		10		Encore Capital Group Inc ^(a)	4,257		84
Convergys Corp	116,386		3,398		Enova International Inc ^(a)	6,813		64
Datalink Corp ^(a)	26,139		248
					FBR & Co	14,931		208
Diebold Inc	6,249		136		Federal Agricultural Mortgage Corp	10,972		448

Engility Holdings Inc(a)	271,683		7,806		FNFV Group ^(a)	15,291		184
ExOne Co/The ^(a)	1,775		21
					GAIN Capital Holdings Inc	11,426		52
Imation Corp ^(a)	29,492		16
					GAMCO Investors Inc	5,467		155
Immersion Corp ^(a)	11,350		93
					Greenhill & Co Inc	22,967		538
Insight Enterprises Inc ^(a)	50,800		1,463
					Hannon Armstrong Sustainable Infrastructure	5,672		130
Key Tronic Corp ^(a)	16,991		131
					Capital Inc

KEYW Holding Corp/The(a)	6,403		67		Impac Mortgage Holdings Inc ^(a)	1,968		31
Lexmark International Inc	28,733		1,140		INTL. FCStone Inc ^(a)	5,251		188
Mentor Graphics Corp	39,710		1,148		Investment Technology Group Inc	6,676		103
Mercury Systems Inc ^(a)	10,633		295
					Janus Capital Group Inc	128,297		1,645
MTS Systems Corp	5,953		283


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Diversified Financial Services (continued)					Electronics (continued)
KCG Holdings Inc ^(a)	60,645	$	774		ESCO Technologies Inc	24,163	$	1,077
Ladder Capital Corp	6,916		88		FARO Technologies Inc ^(a)	8,266		277
LendingClub Corp ^(a)	25,319		125		Frequency Electronics Inc ^(a)	11,821		108
Manning & Napier Inc	33,700		232		GoPro Inc ^(a)	13,830		177
Marlin Business Services Corp	12,048		211		II-VI Inc ^(a)	44,331		1,232
Medley Management Inc	1,492		13		IntriCon Corp ^(a)	448		3
Nationstar Mortgage Holdings Inc ^(a)	2,954		45		Kemet Corp ^(a)	28,632		102
Nelnet Inc	25,748		1,009		Kimball Electronics Inc ^(a)	39,108		544
NewStar Financial Inc ^(a)	56,945		554		Knowles Corp ^(a)	26,511		396
OM Asset Management PLC	13,320		187		LGL Group Inc/The ^(a)	410		2
Oppenheimer Holdings Inc	20,655		290		Methode Electronics Inc	1,922		60
PennyMac Financial Services Inc ^(a)	11,543		197		NVE Corp	1,800		101
PHH Corp ^(a)	61,585		895		OSI Systems Inc ^(a)	3,657		256
Piper Jaffray Cos ^(a)	17,170		971		Park Electrochemical Corp	7,947		123
PJT Partners Inc	3,222		89		Plexus Corp ^(a)	57,136		2,617
PRA Group Inc ^(a)	6,303		201		Rofin-Sinar Technologies Inc ^(a)	22,088		719
Pzena Investment Management Inc	5,936		43		Rogers Corp ^(a)	15,767		858
Regional Management Corp ^(a)	9,005		200		Sanmina Corp ^(a)	81,343		2,250
Stifel Financial Corp ^(a)	26,737		1,046		Sparton Corp ^(a)	7,018		168
Virtu Financial Inc	531		7		Stoneridge Inc ^(a)	6,135		91
Virtus Investment Partners Inc	3,007		322		Sypris Solutions Inc ^(a)	37,183		36
Waddell & Reed Financial Inc	83,979		1,320		Tech Data Corp ^(a)	44,074		3,395
World Acceptance Corp ^(a)	1,216		58		TTM Technologies Inc ^(a)	114,283		1,503
		$	16,332		Vishay Intertechnology Inc	217,417		3,065
Electric - 2.26%					Vishay Precision Group Inc ^(a)	18,529		291
ALLETE Inc	18,566		1,138		Watts Water Technologies Inc	255		15
Ameresco Inc ^(a)	7,506		36		ZAGG Inc ^(a)	19,632		127
Atlantic Power Corp	26,067		60				$	26,711
Atlantica Yield plc	8,110		146		Energy - Alternate Sources - 0.23%
Avista Corp	20,320		841		Clean Energy Fuels Corp ^(a)	48,943		201
Black Hills Corp	9,864		610		FutureFuel Corp	34,260		375
Dynegy Inc ^(a)	97,161		1,034		Green Plains Inc	54,445		1,416
El Paso Electric Co	173,848		8,032		Pacific Ethanol Inc ^(a)	23,241		173
Empire District Electric Co/The	9,855		337		Pattern Energy Group Inc	1,782		40
EnerNOC Inc ^(a)	11,210		58		Renewable Energy Group Inc ^(a)	24,979		219
Genie Energy Ltd ^(a)	8,028		42		REX American Resources Corp ^(a)	1,428		113
IDACORP Inc	6,872		539		Sunrun Inc ^(a)	10,982		57
MGE Energy Inc	12,630		738		TerraForm Global Inc	15,825		59
NorthWestern Corp	165,194		9,507		TerraForm Power Inc ^(a)	11,962		149
NRG Yield Inc - A Shares	6,051		89		Vivint Solar Inc ^(a)	3,980		12
NRG Yield Inc - C Shares	8,756		135				$	2,814
Ormat Technologies Inc	34,023		1,641		Engineering & Construction - 0.72%
Otter Tail Corp	15,856		570		Aegion Corp ^(a)	41,937		776
PNM Resources Inc	10,876		357		EMCOR Group Inc	22,012		1,331
Portland General Electric Co	24,813		1,083		ENGlobal Corp ^(a)	18,947		27
Talen Energy Corp ^(a)	19,901		277		Goldfield Corp/The ^(a)	4,043		11
Unitil Corp	7,376		300		Granite Construction Inc	23,236		1,143
		$	27,570		Hill International Inc ^(a)	28,827		111
Electrical Components & Equipment - 0.50%					IES Holdings Inc ^(a)	515		8
Advanced Energy Industries Inc ^(a)	270		13		KBR Inc	3,649		54
Encore Wire Corp	19,107		652		Layne Christensen Co ^(a)	10,039		86
EnerSys	6,008		391		MasTec Inc ^(a)	57,513		1,642
General Cable Corp	20,572		289		MYR Group Inc ^(a)	17,073		510
Graham Corp	11,604		207		NV5 Global Inc ^(a)	501		14
Insteel Industries Inc	401		11		Orion Group Holdings Inc ^(a)	33,086		267
Littelfuse Inc	29,528		4,119		Sterling Construction Co Inc ^(a)	3,250		24
Novanta Inc ^(a)	4,425		77		TopBuild Corp ^(a)	31,233		941
Powell Industries Inc	5,335		189		Tutor Perini Corp ^(a)	83,038		1,581
SPX Corp ^(a)	7,361		140		VSE Corp	8,584		248
Ultralife Corp ^(a)	14,398		59				$	8,774
		$	6,147		Entertainment - 0.44%
Electronics - 2.19%					AMC Entertainment Holdings Inc	15,729		495
Applied Optoelectronics Inc ^(a)	3,054		59		Caesars Acquisition Co ^(a)	6,434		75
AVX Corp	116,669		1,636		Carmike Cinemas Inc ^(a)	1,094		36
Ballantyne Strong Inc ^(a)	8,901		61		Dover Motorsports Inc	3,447		8
Bel Fuse Inc	9,015		215		Eldorado Resorts Inc ^(a)	9,935		120
Benchmark Electronics Inc ^(a)	87,699		2,205		Eros International PLC ^(a)	5,296		94
Brady Corp	31,979		1,058		Golden Entertainment Inc	1,797		21
Coherent Inc ^(a)	3,994		416		International Game Technology PLC	5,173		149
Control4 Corp ^(a)	3,874		44		International Speedway Corp	25,215		829
CTS Corp	60,910		1,108		Marriott Vacations Worldwide Corp	35,119		2,233
CyberOptics Corp ^(a)	7,092		171		National CineMedia Inc	8,588		119
Electro Scientific Industries Inc ^(a)	27,985		145		Penn National Gaming Inc ^(a)	1,384		18


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Entertainment (continued)					Healthcare - Products (continued)
Pinnacle Entertainment Inc ^(a)	6,739	$	80		Analogic Corp	2,292	$	188
RCI Hospitality Holdings Inc	10,679		124		AngioDynamics Inc ^(a)	48,906		780
Reading International Inc ^(a)	2,471		33		AtriCure Inc ^(a)	1,302		24
Speedway Motorsports Inc	50,125		942		BioTelemetry Inc ^(a)	2,261		40
		$	5,376		Cerus Corp ^(a)	1,772		9
Environmental Control - 0.28%					CONMED Corp	30,848		1,234
Casella Waste Systems Inc ^(a)	7,399		83		CryoLife Inc	12,023		205
CECO Environmental Corp	15,564		154		Cutera Inc ^(a)	10,555		138
Covanta Holding Corp	92,394		1,386		Digirad Corp	15,358		68
Fuel Tech Inc ^(a)	1,539		2		Exactech Inc ^(a)	6,819		165
Heritage-Crystal Clean Inc ^(a)	2,381		31		Haemonetics Corp ^(a)	21,995		735
MSA Safety Inc	1,300		76		Halyard Health Inc ^(a)	9,438		305
Tetra Tech Inc	40,245		1,548		Hanger Inc ^(a)	13,495		108
TRC Cos Inc ^(a)	17,494		142		ICU Medical Inc ^(a)	1,629		227
		$	3,422		Integer Holdings Corp ^(a)	21,436		473
					Integra LifeSciences Holdings Corp ^(a)	40,150		3,192
Food - 1.50%
AMCON Distributing Co	191		17		Invacare Corp	37,601		344
Cal-Maine Foods Inc	939		36		K2M Group Holdings Inc ^(a)	3,228		55
Chefs' Warehouse Inc/The ^(a)	656		7		LeMaitre Vascular Inc	1,485		31
Darling Ingredients Inc ^(a)	148,728		2,023		Luminex Corp ^(a)	5,388		112
Dean Foods Co	28,812		526		Meridian Bioscience Inc	20,007		330
Fairway Group Holdings Corp ^(a),(c)	19,332		—		Merit Medical Systems Inc ^(a)	20,745		455
					Misonix Inc ^(a)	10,945		67
Fresh Del Monte Produce Inc	83,998		5,069
Ingles Markets Inc	18,661		738		Nuvectra Corp ^(a)	5,783		31
					OraSure Technologies Inc ^(a)	14,435		108
John B Sanfilippo & Son Inc	22,359		1,132
					Orthofix International NV ^(a)	6,505		238
Lancaster Colony Corp	4,655		608
Post Holdings Inc ^(a)	18,744		1,429		Quidel Corp ^(a)	2,864		55
					Rockwell Medical Inc ^(a)	1,087		6
Sanderson Farms Inc	6,585		593
Seaboard Corp ^(a)	38		129		TransEnterix Inc ^(a)	10,727		16
Seneca Foods Corp - Class A ^(a)	20,310		598		VWR Corp ^(a)	509,825		14,025
Seneca Foods Corp - Class B ^(a)	39		1		Wright Medical Group NV ^(a)	14,027		307
Smart & Final Stores Inc ^(a)	3,112		37				$	25,511
Snyder's-Lance Inc	47,580		1,692		Healthcare - Services - 2.79%
SpartanNash Co	49,181		1,377		Addus HomeCare Corp ^(a)	8,112		205
SUPERVALU Inc ^(a)	36,470		156		Almost Family Inc ^(a)	9,989		392
United Natural Foods Inc ^(a)	36,682		1,531		Amedisys Inc ^(a)	3,896		168
Village Super Market Inc	2,461		74		American Renal Associates Holdings Inc ^(a)	355		6
Weis Markets Inc	9,802		546		American Shared Hospital Services ^(a)	2,738		8
		$	18,319		Amsurg Corp ^(a)	203,880		12,182
					Brookdale Senior Living Inc ^(a)	68,476		988
Forest Products & Paper - 0.48%
Clearwater Paper Corp ^(a)	6,260		332		Civitas Solutions Inc ^(a)	226,650		3,876
Domtar Corp	52,775		1,897		Community Health Systems Inc ^(a)	15,124		80
Mercer International Inc	51,746		409		Ensign Group Inc/The	2,285		42
					Five Star Quality Care Inc ^(a)	51,012		143
Neenah Paper Inc	8,010		640
PH Glatfelter Co	61,592		1,369		Genesis Healthcare Inc ^(a)	4,293		11
Resolute Forest Products Inc ^(a)	70,441		335		Healthways Inc ^(a)	53,613		1,329
					Interpace Diagnostics Group Inc ^(a)	13,313		2
Schweitzer-Mauduit International Inc	23,996		885
		$	5,867		Kindred Healthcare Inc	77,606		764
					LHC Group Inc ^(a)	22,242		762
Gas - 1.40%
					LifePoint Health Inc ^(a)	40,345		2,415
Chesapeake Utilities Corp	1,728		111
					Magellan Health Inc ^(a)	42,942		2,210
Delta Natural Gas Co Inc	1,182		28
					Medcath Corp ^(a),(b),(c)	31,637		—
New Jersey Resources Corp	10,715		364
					Molina Healthcare Inc ^(a)	1,999		109
Northwest Natural Gas Co	10,607		624
ONE Gas Inc	16,381		1,004		National HealthCare Corp	2,966		192
					Nobilis Health Corp ^(a)	9,749		33
South Jersey Industries Inc	10,993		326
					Quorum Health Corp ^(a)	9,557		39
Southwest Gas Corp	13,903		1,007
					Select Medical Holdings Corp ^(a)	88,882		1,156
Spire Inc	81,929		5,145
					Surgery Partners Inc ^(a)	316,856		5,101
Vectren Corp	156,550		7,876
					Triple-S Management Corp ^(a)	58,762		1,215
WGL Holdings Inc	9,010		568
					Universal American Corp ^(a)	71,889		540
		$	17,053
Hand & Machine Tools - 1.47%							$	33,968
Franklin Electric Co Inc	233,385		8,507		Holding Companies - Diversified - 0.00%
					Wins Finance Holdings Inc ^(a)	437		13
Hardinge Inc	15,453		150
Kennametal Inc	44,592		1,262
Lincoln Electric Holdings Inc	92,550		6,093		Home Builders - 0.68%
					AMREP Corp ^(a)	1,173		9
LS Starrett Co/The	5,475		51
Milacron Holdings Corp ^(a)	409		6		AV Homes Inc ^(a)	10,063		161
					Beazer Homes USA Inc ^(a)	5,929		61
P&F Industries Inc	1,773		14
Regal Beloit Corp	30,140		1,781		CalAtlantic Group Inc	8,410		272
					Century Communities Inc ^(a)	10,418		205
		$	17,864		Green Brick Partners Inc ^(a)	14,235		109
Healthcare - Products - 2.09%					Hovnanian Enterprises Inc ^(a)	23,446		36
Accelerate Diagnostics Inc ^(a)	199		4
Alere Inc ^(a)	32,133		1,436		KB Home	35,238		512
					LGI Homes Inc ^(a)	332		10


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Home Builders (continued)					Insurance (continued)
M/I Homes Inc ^(a)	39,749	$	854		National Security Group Inc/The	369	$	6
MDC Holdings Inc	74,688		1,771		National Western Life Group Inc	5,576		1,201
Meritage Homes Corp ^(a)	47,855		1,481		Navigators Group Inc/The	22,497		2,097
New Home Co Inc/The ^(a)	1,959		20		NMI Holdings Inc ^(a)	44,800		342
Orleans Homebuilders Inc ^(a),(b),(c)	7,702		—		OneBeacon Insurance Group Ltd	3,942		54
PICO Holdings Inc ^(a)	5,497		66		Radian Group Inc	98,192		1,334
Taylor Morrison Home Corp ^(a)	4,200		72		RenaissanceRe Holdings Ltd	116,301		14,455
TRI Pointe Group Inc ^(a)	161,267		1,746		RLI Corp	1,844		103
UCP Inc ^(a)	1,793		16		Safety Insurance Group Inc	8,882		601
WCI Communities Inc ^(a)	18,984		440		Security National Financial Corp ^(a)	939		6
William Lyon Homes ^(a)	22,604		404		Selective Insurance Group Inc	66,677		2,464
Winnebago Industries Inc	2,570		73		State Auto Financial Corp	42,202		967
		$	8,318		State National Cos Inc	5,453		56
Home Furnishings - 1.07%					Stewart Information Services Corp	15,382		691
American Woodmark Corp ^(a)	76,975		5,750		Third Point Reinsurance Ltd ^(a)	61,793		726
Bassett Furniture Industries Inc	12,577		289		Unico American Corp ^(a)	5,796		65
Daktronics Inc	30,788		257		United Fire Group Inc	40,783		1,612
Emerson Radio Corp ^(a)	4,358		4		United Insurance Holdings Corp	3,639		52
Ethan Allen Interiors Inc	9,356		288		Universal Insurance Holdings Inc	4,273		91
Flexsteel Industries Inc	8,888		372				$	98,055
Hooker Furniture Corp	14,969		393		Internet - 0.46%
La-Z-Boy Inc	239,503		5,605		1-800-Flowers.com Inc ^(a)	4,392		42
Stanley Furniture Co Inc	8,033		11		8x8 Inc ^(a)	1,355		19
VOXX International Corp ^(a)	8,359		34		Autobytel Inc ^(a)	1,460		24
		$	13,003		Bankrate Inc ^(a)	144,197		1,125
Housewares - 0.05%					Blucora Inc ^(a)	51,378		684
Libbey Inc	3,815		61		Boingo Wireless Inc ^(a)	2,495		24
Lifetime Brands Inc	15,538		220		ChannelAdvisor Corp ^(a)	5,307		58
NACCO Industries Inc	5,069		371		Chegg Inc ^(a)	8,306		55
		$	652		ePlus Inc ^(a)	5,422		496
					FTD Cos Inc ^(a)	25,307		509
Insurance - 8.04%
					Global Eagle Entertainment Inc ^(a)	24,598		198
Allied World Assurance Co Holdings AG	8,723		375
Ambac Financial Group Inc ^(a)	55,842		1,031		Global Sources Ltd ^(a)	1,752		14
					Intralinks Holdings Inc ^(a)	25,985		239
American Equity Investment Life Holding Co	128,679		2,307
					Limelight Networks Inc ^(a)	14,837		26
American National Insurance Co	1,810		212
AMERISAFE Inc	1,890		105		Liquidity Services Inc ^(a)	39,351		348
					MeetMe Inc ^(a)	25,125		123
Argo Group International Holdings Ltd	39,936		2,221
					ModusLink Global Solutions Inc ^(a)	9,253		13
Aspen Insurance Holdings Ltd	284,382		13,721
Atlantic American Corp	7,236		27		New Media Investment Group Inc	27,226		392
Atlas Financial Holdings Inc ^(a)	1,287		22		PC-Tel Inc	47		—
					Perficient Inc ^(a)	14,184		263
Baldwin & Lyons Inc	23,076		567
Blue Capital Reinsurance Holdings Ltd	1,443		26		QuinStreet Inc ^(a)	4,820		14
					RealNetworks Inc ^(a)	19,099		85
Brown & Brown Inc	278,125		10,252
Citizens Inc/TX ^(a)	8,513		66		Reis Inc	11,692		230
CNO Financial Group Inc	237,783		3,586		RetailMeNot Inc ^(a)	34,482		312
					Rightside Group Ltd ^(a)	2,249		19
Donegal Group Inc	19,343		291
					Rubicon Project Inc/The ^(a)	36,895		283
EMC Insurance Group Inc	21,295		518
Employers Holdings Inc	34,697		1,088		TechTarget Inc ^(a)	2,312		19
Endurance Specialty Holdings Ltd	1,979		182		TheStreet Inc	28,307		30
Enstar Group Ltd ^(a)	2,260		381		VASCO Data Security International Inc ^(a)	716		10
FBL Financial Group Inc	49,081		3,107				$	5,654
Federated National Holding Co	19,939		357		Investment Companies - 1.13%
Fidelity & Guaranty Life	2,252		50		Acacia Research Corp	9,398		55
First Acceptance Corp ^(a)	19,254		17		FS Investment Corp	758,975		7,286
First American Financial Corp	341,117		13,324		Real Industry Inc ^(a)	2,218		12
Genworth Financial Inc ^(a)	540,623		2,238		TCP Capital Corp	401,600		6,422
Global Indemnity PLC ^(a)	16,661		500				$	13,775
Greenlight Capital Re Ltd ^(a)	20,228		402		Iron & Steel - 1.23%
Hallmark Financial Services Inc ^(a)	36,388		377		AK Steel Holding Corp ^(a)	51,120		266
Hanover Insurance Group Inc/The	42,480		3,237		Allegheny Technologies Inc	14,842		202
HCI Group Inc	8,409		229		Carpenter Technology Corp	47,151		1,490
Heritage Insurance Holdings Inc	11,335		134		Cliffs Natural Resources Inc ^(a)	45,242		250
Horace Mann Educators Corp	68,524		2,463		Commercial Metals Co	172,929		2,716
Independence Holding Co	16,057		282		Friedman Industries Inc	7,610		39
Infinity Property & Casualty Corp	9,873		809		Reliance Steel & Aluminum Co	116,325		8,001
Investors Title Co	1,717		165		Ryerson Holding Corp ^(a)	3,370		35
James River Group Holdings Ltd	2,665		100		Schnitzer Steel Industries Inc	56,656		1,368
Kemper Corp	72,738		2,731		Shiloh Industries Inc ^(a)	13,842		97
Maiden Holdings Ltd	87,437		1,193		Universal Stainless & Alloy Products Inc ^(a)	5,528		58
MBIA Inc ^(a)	161,061		1,241		Worthington Industries Inc	10,800		508
MGIC Investment Corp ^(a)	125,899		1,028				$	15,030
National General Holdings Corp	6,382		131		Leisure Products & Services - 0.71%
National Interstate Corp	1,196		39		Arctic Cat Inc	11,072		166


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Leisure Products & Services (continued)					Media (continued)
Callaway Golf Co	13,839	$	141		Saga Communications Inc	5,212	$	219
Escalade Inc	1,608		20		Salem Media Group Inc	17,328		94
Intrawest Resorts Holdings Inc ^(a)	7,566		124		Scholastic Corp	47,052		1,800
Johnson Outdoors Inc	9,425		339		Spanish Broadcasting System Inc ^(a)	1,921		6
Liberty TripAdvisor Holdings Inc ^(a)	56,626		1,257		Time Inc	14,078		183
Vista Outdoor Inc ^(a)	170,326		6,587		TiVo Corp ^(a)	127,034		2,521
		$	8,634		Townsquare Media Inc ^(a)	1,742		15
Lodging - 0.30%					tronc Inc ^(a)	2,145		26
Belmond Ltd ^(a)	123,445		1,599		Value Line Inc	273		5
Caesars Entertainment Corp ^(a)	10,063		72				$	11,263
Century Casinos Inc ^(a)	5,544		35		Metal Fabrication & Hardware - 0.32%
Full House Resorts Inc ^(a)	550		1		A. M. Castle & Co ^(a)	14,524		7
ILG Inc	44,675		732		Ampco-Pittsburgh Corp	11,044		120
La Quinta Holdings Inc ^(a)	16,961		170		Chicago Rivet & Machine Co	1,070		32
Marcus Corp/The	27,492		728		CIRCOR International Inc	4,096		220
MonarchCasino&Resort Inc ^(a)	2,046		48		Dynamic Materials Corp	5,141		55
Red Lion Hotels Corp ^(a)	31,701		266		Eastern Co/The	2,538		50
		$	3,651		Global Brass & Copper Holdings Inc	52,637		1,511
Machinery - Construction & Mining - 0.48%					Haynes International Inc	3,592		116
Astec Industries Inc	20,553		1,138		Lawson Products Inc/DE ^(a)	6,400		121
Babcock & Wilcox Enterprises Inc ^(a)	32,812		516		LB Foster Co	1,146		14
Hyster-Yale Materials Handling Inc	4,978		290		Mueller Industries Inc	4,165		126
Joy Global Inc	29,599		824		Northwest Pipe Co ^(a)	6,892		90
Oshkosh Corp	35,345		1,891		Olympic Steel Inc	14,753		341
Terex Corp	49,000		1,170		Park-Ohio Holdings Corp	2,337		75
		$	5,829		Rexnord Corp ^(a)	5,096		101
Machinery - Diversified - 0.99%					Sun Hydraulics Corp	322		9
Alamo Group Inc	13,424		871		TimkenSteel Corp ^(a)	38,121		391
					TriMas Corp ^(a)	31,030		557
Albany International Corp	4,993		203
Altra Industrial Motion Corp	2,096		62				$	3,936
Applied Industrial Technologies Inc	24,559		1,247		Mining - 0.58%
Briggs & Stratton Corp	59,337		1,105		A-Mark Precious Metals Inc	2,012		31
Chart Industries Inc ^(a)	22,620		627		Century Aluminum Co ^(a)	164,577		1,203
Columbus McKinnon Corp/NY	7,826		153		Coeur Mining Inc ^(a)	28,741		322
DXP Enterprises Inc ^(a)	2,421		53		Fairmount Santrol Holdings Inc ^(a)	10,541		90
Gencor Industries Inc ^(a)	4,463		54		Ferroglobe PLC	26,533		246
Gerber Scientific Inc ^(a),(b),(c)	56,637		—		Gold Resource Corp	2,204		12
Global Power Equipment Group Inc ^(a)	4,572		17		Hecla Mining Co	324,262		1,942
Gorman-Rupp Co/The	1,443		35		Kaiser Aluminum Corp	4,313		313
Hurco Cos Inc	11,024		288		Materion Corp	26,822		813
Kadant Inc	12,153		628		Stillwater Mining Co ^(a)	152,326		2,029
Key Technology Inc ^(a)	1,200		12		United States Lime & Minerals Inc	404		26
Lindsay Corp	208		16				$	7,027
Manitowoc Co Inc/The	41,266		167		Miscellaneous Manufacturers - 1.32%
Manitowoc Foodservice Inc ^(a)	9,115		138		Actuant Corp	26,394		589
NN Inc	12,795		226		American Railcar Industries Inc	8,468		312
Power Solutions International Inc ^(a)	214		2		Barnes Group Inc	53,779		2,142
SPX FLOW Inc ^(a)	4,905		123		Core Molding Technologies Inc ^(a)	9,787		171
Tennant Co	2,324		147		Fabrinet ^(a)	22,088		838
Twin Disc Inc	2,399		26		Federal Signal Corp	41,724		513
Zebra Technologies Corp ^(a)	89,750		5,909		FreightCar America Inc	9,765		127
		$	12,109		Handy & Harman Ltd ^(a)	794		15
Media - 0.92%					Harsco Corp	25,658		250
A H Belo Corp	19,330		123		Hillenbrand Inc	311,000		9,439
Beasley Broadcast Group Inc	5,597		28		LSB Industries Inc ^(a)	28,877		152
Cumulus Media Inc ^(a)	10,020		14		Lydall Inc ^(a)	6,082		284
Daily Journal Corp ^(a)	69		15		MFRI Inc ^(a)	7,216		58
Entercom Communications Corp	20,575		272		Myers Industries Inc	6,430		78
EW Scripps Co/The ^(a)	63,858		847		NL Industries Inc ^(a)	9,331		30
Gannett Co Inc	59,777		465		Raven Industries Inc	26,203		562
Gray Television Inc ^(a)	77,812		692		Servotronics Inc	788		9
Hemisphere Media Group Inc ^(a)	680		8		Standex International Corp	397		30
Houghton Mifflin Harcourt Co ^(a)	28,819		364		Synalloy Corp	1,787		18
Liberty Media Corp-Liberty Braves ^(a)	1,526		26		Tredegar Corp	22,530		417
Liberty Media Corp-Liberty Braves ^(a)	5,079		85				$	16,034
Liberty Media Corp-Liberty Media ^(a)	2,571		72		Office & Business Equipment - 0.00%
Liberty Media Corp-Liberty Media ^(a)	5,216		143		Eastman Kodak Co ^(a)	759		11
McClatchy Co/The ^(a)	5,247		74
Media General Inc ^(a)	48,399		815		Office Furnishings - 0.10%
Meredith Corp	26,624		1,208		CompX International Inc	630		7
MSG Networks Inc ^(a)	8,740		167		HNI Corp	2,530		103
New York Times Co/The	82,774		902		Interface Inc	25,968		411
Radio One Inc ^(a)	29,911		74		Kewaunee Scientific Corp	4,058		89


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Office Furnishings (continued)					Oil & Gas Services (continued)
Kimball International Inc	24,896	$	311		Pioneer Energy Services Corp ^(a)	70,920	$	252
Knoll Inc	15,460		335		SEACOR Holdings Inc ^(a)	29,153		1,438
Virco Manufacturing Corp ^(a)	4,847		21		Seventy Seven Energy Inc ^(a),(b),(c)	16,216		—
		$	1,277		Seventy Seven Energy Inc - Warrants B	811		—
					(a),(b),(c)
Oil & Gas - 3.70%
Adams Resources & Energy Inc	1,570		57		Seventy Seven Energy Inc - Warrants C	901		—
					(a),(b),(c)
Alon USA Energy Inc	89,452		721
Atwood Oceanics Inc	39,017		298		Tesco Corp	33,318		228
Barnwell Industries Inc ^(a)	2,755		4		TETRA Technologies Inc ^(a)	51,211		279
Bill Barrett Corp ^(a)	9,597		50		Thermon Group Holdings Inc ^(a)	203,423		3,728
Callon Petroleum Co ^(a)	371,475		4,825		Willbros Group Inc ^(a)	23,656		36
Clayton Williams Energy Inc ^(a)	1,072		94				$	22,394
Cobalt International Energy Inc ^(a)	135,040		127		Packaging & Containers - 2.63%
Contango Oil & Gas Co ^(a)	61,244		480		Graphic Packaging Holding Co	913,250		11,416
CVR Energy Inc	5,247		70		Greif Inc - Class A	50,640		2,374
Delek US Holdings Inc	77,210		1,305		Greif Inc - Class B	1,665		97
Denbury Resources Inc ^(a)	48,486		116		KapStone Paper and Packaging Corp	39,067		708
Diamond Offshore Drilling Inc	76,937		1,269		Multi Packaging Solutions International Ltd ^(a)	451,875		6,105
Eclipse Resources Corp ^(a)	11,520		32		Multi-Color Corp	90,950		5,905
EP Energy Corp ^(a)	7,836		28		Silgan Holdings Inc	106,601		5,431
EXCO Resources Inc ^(a)	28,262		31		UFP Technologies Inc ^(a)	1,323		35
Jones Energy Inc ^(a)	11,174		45				$	32,071
Kosmos Energy Ltd ^(a)	29,178		152		Pharmaceuticals - 0.69%
Laredo Petroleum Inc ^(a)	644,425		7,682		Adamas Pharmaceuticals Inc ^(a)	1,432		20
Nabors Industries Ltd	183,757		2,187		Akebia Therapeutics Inc ^(a)	4,314		32
Noble Corp plc	121,907		602		Amphastar Pharmaceuticals Inc ^(a)	6,470		117
Oasis Petroleum Inc ^(a)	715,256		7,502		Anika Therapeutics Inc ^(a)	1,095		49
Pacific Drilling SA ^(a)	4,924		17		Array BioPharma Inc ^(a)	22,716		130
Panhandle Oil and Gas Inc	5,334		96		BioScrip Inc ^(a)	26,204		70
Par Pacific Holdings Inc ^(a)	3,615		46		Cara Therapeutics Inc ^(a)	3,106		22
Parker Drilling Co ^(a)	143,980		288		Chimerix Inc ^(a)	70,893		288
Patterson-UTI Energy Inc	121,668		2,735		Cidara Therapeutics Inc ^(a)	1,719		16
PBF Energy Inc	48,608		1,060		Concert Pharmaceuticals Inc ^(a)	1,674		13
PDC Energy Inc ^(a)	51,220		3,142		Egalet Corp ^(a)	2,893		16
QEP Resources Inc	38,405		617		Enanta Pharmaceuticals Inc ^(a)	2,674		63
Rice Energy Inc ^(a)	47,465		1,049		Horizon Pharma Plc ^(a)	5,855		98
Ring Energy Inc ^(a)	6,637		61		Ignyta Inc ^(a)	1,850		9
Rowan Cos Plc	101,067		1,341		Inotek Pharmaceuticals Corp ^(a)	295		2
RSP Permian Inc ^(a)	97,407		3,517		Kadmon Holdings Inc ^(a)	282		1
Sanchez Energy Corp ^(a)	7,262		46		Lannett Co Inc ^(a)	7,102		155
Seadrill Ltd ^(a)	81,193		173		NantKwest Inc ^(a)	2,549		15
SM Energy Co	7,376		248		Natural Alternatives International Inc ^(a)	3,359		42
Synergy Resources Corp ^(a)	22,669		155		Natural Grocers by Vitamin Cottage Inc ^(a)	5,980		71
Trecora Resources ^(a)	1,051		11		Nature's Sunshine Products Inc	1,566		20
Unit Corp ^(a)	46,363		794		Nutraceutical International Corp ^(a)	12,750		367
W&T Offshore Inc ^(a)	7,898		11		Omega Protein Corp ^(a)	44,183		986
Western Refining Inc	11,033		318		Osiris Therapeutics Inc ^(a)	286		1
Whiting Petroleum Corp ^(a)	66,670		549		Owens & Minor Inc	15,566		505
WPX Energy Inc ^(a)	106,858		1,160		PharMerica Corp ^(a)	16,916		403
		$	45,111		Phibro Animal Health Corp	315		8
Oil & Gas Services - 1.84%					Portola Pharmaceuticals Inc ^(a)	709		13
Archrock Inc	128,532		1,492		PRA Health Sciences Inc ^(a)	81,150		4,319
Bristow Group Inc	60,634		606		Prestige Brands Holdings Inc ^(a)	9,292		421
CARBO Ceramics Inc ^(a)	3,505		21		Protagonist Therapeutics Inc ^(a)	263		5
Dawson Geophysical Co ^(a)	17,177		112		Syros Pharmaceuticals Inc ^(a)	162		2
Dril-Quip Inc ^(a)	24,084		1,144		TherapeuticsMD Inc ^(a)	1,283		7
Era Group Inc ^(a)	29,938		226		Titan Pharmaceuticals Inc ^(a)	674		3
Exterran Corp ^(a)	43,989		695		Voyager Therapeutics Inc ^(a)	1,091		13
Forum Energy Technologies Inc ^(a)	272,365		4,902		Zafgen Inc ^(a)	3,915		12
Geospace Technologies Corp ^(a)	3,882		71		Zogenix Inc ^(a)	4,400		36
Gulf Island Fabrication Inc	12,218		122				$	8,350
Gulfmark Offshore Inc ^(a)	21,511		25		Pipelines - 0.14%
Helix Energy Solutions Group Inc ^(a)	164,027		1,431		SemGroup Corp	53,736		1,733
Independence Contract Drilling Inc ^(a)	6,106		24
Matrix Service Co ^(a)	9,849		175		Private Equity - 0.02%
McDermott International Inc ^(a)	224,064		1,151		Fifth Street Asset Management Inc	1,331		7
Mitcham Industries Inc ^(a)	12,775		38		Kennedy-Wilson Holdings Inc	5,740		118
MRC Global Inc ^(a)	18,376		271		Safeguard Scientifics Inc ^(a)	12,633		149
Natural Gas Services Group Inc ^(a)	14,855		323				$	274
Newpark Resources Inc ^(a)	93,353		589
					Real Estate - 0.31%
NOW Inc ^(a)	20,545		443
					Alexander & Baldwin Inc	25,300		1,058
Oceaneering International Inc	18,837		448		Altisource Residential Corp	98,981		997
Oil States International Inc ^(a)	60,728		1,777		BBX Capital Corp ^(a)	1,774		36
PHI Inc ^(a)	22,260		347


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Real Estate (continued)					REITS (continued)
California Coastal Communities Inc ^(a),(b),(c)	9,672	$	—		National Storage Affiliates Trust	8,597	$	168
Community Healthcare Trust Inc	2,275		51		New Residential Investment Corp	46,597		650
Consolidated-Tomoka Land Co	163		8		New Senior Investment Group Inc	10,600		110
Farmland Partners Inc	2,419		26		New York Mortgage Trust Inc	14,704		87
Forestar Group Inc ^(a)	25,331		278		New York REIT Inc	22,617		213
Griffin Industrial Realty Inc	1,161		36		NexPoint Residential Trust Inc	3,581		67
RE/MAX Holdings Inc	22,436		975		NorthStar Realty Europe Corp	7,968		79
RMR Group Inc/The	502		17		One Liberty Properties Inc	2,643		62
St Joe Co/The ^(a)	10,685		189		Orchid Island Capital Inc	3,883		41
Stratus Properties Inc ^(a)	3,790		92		Owens Realty Mortgage Inc	2,024		37
		$	3,763		Parkway Inc ^(a)	6,951		125
REITS - 3.36%					Pebblebrook Hotel Trust	9,776		237
Acadia Realty Trust	11,834		399		Pennsylvania Real Estate Investment Trust	24,198		473
AG Mortgage Investment Trust Inc	11,873		184		PennyMac Mortgage Investment Trust	56,200		855
Agree Realty Corp	5,332		258		Physicians Realty Trust	14,237		281
Alexander's Inc	148		57		Potlatch Corp	1,430		55
American Assets Trust Inc	3,497		139		Preferred Apartment Communities Inc	4,404		57
Annaly Capital Management Inc	11,481		119		PS Business Parks Inc	1,175		129
Anworth Mortgage Asset Corp	100,801		495		Ramco-Gershenson Properties Trust	301,075		5,221
Apollo Commercial Real Estate Finance Inc	34,872		590		Redwood Trust Inc	23,626		332
Ares Commercial Real Estate Corp	52,628		690		Resource Capital Corp	78,819		977
Armada Hoffler Properties Inc	1,319		18		Retail Opportunity Investments Corp	7,845		158
ARMOUR Residential REIT Inc	5,014		114		Rexford Industrial Realty Inc	5,530		116
Ashford Hospitality Prime Inc	26,602		345		RLJ Lodging Trust	35,577		702
Ashford Hospitality Trust Inc	33,362		194		Sabra Health Care REIT Inc	50,672		1,181
Bluerock Residential Growth REIT Inc	3,574		44		Saul Centers Inc	1,142		69
Capstead Mortgage Corp	20,936		199		Select Income REIT	33,786		836
CatchMark Timber Trust Inc ^(b)	7,356		78		Seritage Growth Properties	3,435		156
CBL & Associates Properties Inc	119,262		1,277		Silver Bay Realty Trust Corp	6,384		107
Cedar Realty Trust Inc	15,436		105		STORE Capital Corp	20,635		563
Chatham Lodging Trust	5,069		90		Summit Hotel Properties Inc	19,933		259
Chesapeake Lodging Trust	53,693		1,166		Sunstone Hotel Investors Inc	54,724		687
City Office REIT Inc	1,454		18		Terreno Realty Corp	4,619		121
Colony Capital Inc	21,672		412		Tier REIT Inc	6,382		94
Colony Starwood Homes	12,207		354		UMH Properties Inc	3,680		45
CorEnergy Infrastructure Trust Inc	2,314		63		Universal Health Realty Income Trust	1,569		92
Cousins Properties Inc	55,611		432		Urstadt Biddle Properties Inc	3,981		86
CYS Investments Inc	34,356		296		Washington Prime Group Inc	19,942		209
DiamondRock Hospitality Co	60,132		550		Washington Real Estate Investment Trust	10,271		302
DuPont Fabros Technology Inc	1,260		51		Whitestone REIT	5,029		67
Dynex Capital Inc	8,871		61		Xenia Hotels & Resorts Inc	22,082		345
Easterly Government Properties Inc	8,945		170				$	40,933
EastGroup Properties Inc	1,795		122		Retail - 4.10%
Education Realty Trust Inc	12,140		517		Abercrombie & Fitch Co	159,330		2,328
Equity One Inc	1,240		35		American Eagle Outfitters Inc	33,226		566
FelCor Lodging Trust Inc	31,321		200		America's Car-Mart Inc/TX ^(a)	1,532		63
First Industrial Realty Trust Inc	18,025		476		Ascena Retail Group Inc ^(a)	67,124		328
First Potomac Realty Trust	20,222		180		Barnes & Noble Education Inc ^(a)	48,676		454
Four Corners Property Trust Inc	2,701		54		Barnes & Noble Inc	102,395		1,054
Franklin Street Properties Corp	23,459		271		Big 5 Sporting Goods Corp	20,492		317
GEO Group Inc/The	26,060		625		Biglari Holdings Inc ^(a)	174		76
Getty Realty Corp	8,356		190		BJ's Restaurants Inc ^(a)	315		11
Gladstone Commercial Corp	4,236		76		BMC Stock Holdings Inc ^(a)	6,730		111
Global Net Lease Inc	23,401		173		Bob Evans Farms Inc/DE	15,030		620
Government Properties Income Trust	33,725		645		Boot Barn Holdings Inc ^(a)	2,421		31
Gramercy Property Trust	108,798		1,003		Buckle Inc/The	2,543		53
Great Ajax Corp	3,063		42		Build-A-Bear Workshop Inc ^(a)	11,809		159
Healthcare Realty Trust Inc	21,365		681		Cabela's Inc ^(a)	6,998		431
Hersha Hospitality Trust	262,736		4,682		Caleres Inc	15,101		378
Hudson Pacific Properties Inc	12,720		428		Carrols Restaurant Group Inc ^(a)	1,219		15
Independence Realty Trust Inc	7,698		64		Cato Corp/The	4,899		145
InfraREIT Inc	5,359		89		Chico's FAS Inc	46,083		538
Invesco Mortgage Capital Inc	15,497		231		Christopher & Banks Corp ^(a)	6,024		8
Investors Real Estate Trust	16,190		98		Citi Trends Inc	14,817		294
Kite Realty Group Trust	23,540		587		Conn's Inc ^(a)	308		3
LaSalle Hotel Properties	71,566		1,699		Container Store Group Inc/The ^(a)	3,595		17
Lexington Realty Trust	47,819		485		Cracker Barrel Old Country Store Inc	137		19
Life Storage Inc	4,355		351		Del Frisco's Restaurant Group Inc ^(a)	16,548		237
LTC Properties Inc	2,046		103		Del Taco Restaurants Inc ^(a)	17,981		241
Mack-Cali Realty Corp	16,649		428		Denny's Corp ^(a)	56,686		587
Medical Properties Trust Inc	31,545		440		Dillard's Inc	10,239		628
Monmouth Real Estate Investment Corp	13,883		190		DineEquity Inc	987		78
Monogram Residential Trust Inc	23,192		244		DSW Inc	24,359		506
MTGE Investment Corp	6,147		105		El Pollo Loco Holdings Inc ^(a)	3,680		45


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Retail (continued)					Savings & Loans (continued)
Express Inc ^(a)	45,265	$	544		First Defiance Financial Corp	11,945	$	471
EZCORP Inc ^(a)	101,889		993		First Financial Northwest Inc	15,111		240
Fiesta Restaurant Group Inc ^(a)	633		17		Flagstar Bancorp Inc ^(a)	28,108		771
Finish Line Inc/The	35,033		690		Flushing Financial Corp	45,468		974
FirstCash Inc	251,180		11,856		Greene County Bancorp Inc	803		14
Fogo De Chao Inc ^(a)	1,180		14		Hingham Institution for Savings	169		24
Fred's Inc	34,703		317		HMN Financial Inc ^(a)	2,080		31
Gaia Inc ^(a)	1,515		11		Home Bancorp Inc	4,520		130
GameStop Corp	47,109		1,133		HomeStreet Inc ^(a)	26,884		741
Genesco Inc ^(a)	21,898		1,178		HomeTrust Bancshares Inc ^(a)	6,831		127
Group 1 Automotive Inc	135,456		8,163		HopFed Bancorp Inc	3,929		45
Guess? Inc	104,744		1,414		Investors Bancorp Inc	152,816		1,873
Haverty Furniture Cos Inc	21,989		391		Lake Sunapee Bank Group	3,593		66
Hibbett Sports Inc ^(a)	1,831		71		Magyar Bancorp Inc ^(a)	400		4
J Alexander's Holdings Inc ^(a)	2,864		26		Meridian Bancorp Inc	57,351		914
Jack in the Box Inc	1,663		156		Meta Financial Group Inc	4,227		310
JC Penney Co Inc ^(a)	7,198		62		MutualFirst Financial Inc	6,139		168
Kirkland's Inc ^(a)	1,705		21		Northeast Community Bancorp Inc	2,697		20
Kona Grill Inc ^(a)	717		8		Northfield Bancorp Inc	60,638		997
Luby's Inc ^(a)	32,716		137		Northwest Bancshares Inc	124,593		1,962
MarineMax Inc ^(a)	20,860		416		Ocean Shore Holding Co	2,736		66
Movado Group Inc	38,436		847		OceanFirst Financial Corp	5,337		110
New York & Co Inc ^(a)	6,083		13		Oritani Financial Corp	32,977		515
Office Depot Inc	155,649		490		Pacific Premier Bancorp Inc ^(a)	173,624		4,489
Party City Holdco Inc ^(a)	2,869		47		Provident Financial Holdings Inc	13,339		255
PC Connection Inc	36,348		844		Provident Financial Services Inc	101,002		2,292
PCM Inc ^(a)	12,431		264		Prudential Bancorp Inc	6,246		92
Penske Automotive Group Inc	28,014		1,254		Riverview Bancorp Inc	28,105		147
Perfumania Holdings Inc ^(a)	3,407		7		SI Financial Group Inc	4,094		53
Pier 1 Imports Inc	69,627		300		Southern Missouri Bancorp Inc	1,171		29
Red Robin Gourmet Burgers Inc ^(a)	1,479		68		Sterling Bancorp/DE	101,639		1,830
Regis Corp ^(a)	56,068		711		Territorial Bancorp Inc	10,674		305
Restoration Hardware Holdings Inc ^(a)	5,310		154		Timberland Bancorp Inc/WA	7,281		120
Ruby Tuesday Inc ^(a)	102,981		306		United Community Financial Corp/OH	34,374		252
Rush Enterprises Inc - Class A ^(a)	33,586		881		United Financial Bancorp Inc	40,070		590
Rush Enterprises Inc - Class B ^(a)	13,225		336		Washington Federal Inc	133,608		3,641
Ruth's Hospitality Group Inc	4,890		78		Waterstone Financial Inc	30,674		520
Sears Holdings Corp ^(a)	1,574		17		Wayne Savings Bancshares Inc	1,380		20
Shoe Carnival Inc	21,734		551		WSFS Financial Corp	6,686		234
Sonic Automotive Inc	35,256		631				$	35,764
Sonic Corp	3,913		90		Semiconductors - 2.62%
Sportsman's Warehouse Holdings Inc ^(a)	699		6		Advanced Micro Devices Inc ^(a)	100,859		730
Stage Stores Inc	60,394		308		Alpha & Omega Semiconductor Ltd ^(a)	21,587		456
Tailored Brands Inc	32,979		521		Ambarella Inc ^(a)	2,621		161
Tilly's Inc ^(a)	8,525		80		Amkor Technology Inc ^(a)	157,457		1,460
Trans World Entertainment Corp ^(a)	33,798		132		Axcelis Technologies Inc ^(a)	20,220		276
Tuesday Morning Corp ^(a)	32,935		163		AXT Inc ^(a)	14,141		73
Vera Bradley Inc ^(a)	7,733		103		Brooks Automation Inc	102,734		1,338
Vitamin Shoppe Inc ^(a)	19,825		497		Cabot Microelectronics Corp	4,771		264
Wendy's Co/The	83,968		910		Cavium Inc ^(a)	1,111		63
West Marine Inc ^(a)	28,518		228		Cohu Inc	40,270		450
World Fuel Services Corp	23,045		928		Cypress Semiconductor Corp	159,676		1,592
Zumiez Inc ^(a)	12,743		283		Diodes Inc ^(a)	37,180		770
		$	50,007		DSP Group Inc ^(a)	33,491		365
Savings & Loans - 2.93%					EMCORE Corp	5,573		37
Astoria Financial Corp	144,025		2,107		Entegris Inc ^(a)	7,312		116
Atlantic Coast Financial Corp ^(a)	210		1		Exar Corp ^(a)	9,121		83
Banc of California Inc	19,402		258		FormFactor Inc ^(a)	62,166		557
Bank Mutual Corp	42,383		330		Intersil Corp	20,839		460
BankFinancial Corp	38,300		482		InvenSense Inc ^(a)	11,000		84
Bear State Financial Inc	395		3		IXYS Corp	39,996		424
Beneficial Bancorp Inc	62,114		901		Kulicke & Soffa Industries Inc ^(a)	79,205		1,049
Berkshire Hills Bancorp Inc	55,265		1,633		MKS Instruments Inc	63,777		3,218
BofI Holding Inc ^(a)	473		9		Nanometrics Inc ^(a)	15,160		317
Brookline Bancorp Inc	82,930		1,061		Photronics Inc ^(a)	127,141		1,233
BSB Bancorp Inc/MA ^(a)	1,518		37		Power Integrations Inc	705		45
Capitol Federal Financial Inc	88,065		1,292		Rambus Inc ^(a)	11,145		136
Charter Financial Corp/MD	17,954		227		Richardson Electronics Ltd/United States	11,891		74
Citizens Community Bancorp Inc/WI	2,250		24		Rudolph Technologies Inc ^(a)	37,690		682
Clifton Bancorp Inc	31,567		482		Semtech Corp ^(a)	1,135		27
Dime Community Bancshares Inc	36,117		585		Sigma Designs Inc ^(a)	33,731		246
Eagle Bancorp Montana Inc	111		2		Silicon Laboratories Inc ^(a)	196,070		11,755
ESSA Bancorp Inc	9,291		125		Tessera Technologies Inc	19,682		730
EverBank Financial Corp	39,474		763		Ultra Clean Holdings Inc ^(a)	36,859		313


Schedule of Investments
SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)	COMMON STOCKS (continued)	Shares Held		Value(000	's)
Semiconductors (continued)					Telecommunications (continued)
Ultratech Inc ^(a)	60,022	$	1,278		NeoPhotonics Corp ^(a)	4,645	$	65
Veeco Instruments Inc ^(a)	41,093		892		NETGEAR Inc ^(a)	32,466		1,639
Xcerra Corp ^(a)	29,581		163		NeuStar Inc ^(a)	7,244		163
		$	31,917		NII Holdings Inc ^(a)	9,170		22
Software - 2.48%					Novatel Wireless Inc ^(a)	4,845		13
Actua Corp ^(a)	9,425		110		Numerex Corp ^(a)	1,962		14
Acxiom Corp ^(a)	12,760		301		Oclaro Inc ^(a)	2,160		16
Allscripts Healthcare Solutions Inc ^(a)	57,338		689		Optical Cable Corp ^(a)	8,872		24
Avid Technology Inc ^(a)	48,074		315		ORBCOMM Inc ^(a)	16,960		152
Bazaarvoice Inc ^(a)	15,064		74		Preformed Line Products Co	1,641		71
Bottomline Technologies de Inc ^(a)	791		18		RF Industries Ltd	300		1
BroadSoft Inc ^(a)	100,750		4,186		Shenandoah Telecommunications Co	84		2
Concurrent Computer Corp	2,188		14		ShoreTel Inc ^(a)	52,443		349
Digi International Inc ^(a)	60,061		549		Silicom Ltd	848		32
Dun & Bradstreet Corp/The	73,450		9,170		Sonus Networks Inc ^(a)	56,763		328
Everyday Health Inc ^(a)	5,386		57		Spok Holdings Inc	22,013		397
Evolent Health Inc ^(a)	2,740		58		Telenav Inc ^(a)	19,170		104
InnerWorkings Inc ^(a)	22,998		202		Telephone & Data Systems Inc	78,538		2,029
ManTech International Corp/VA	32,960		1,279		TESSCO Technologies Inc	2,082		24
MicroStrategy Inc ^(a)	614		120		United States Cellular Corp ^(a)	1,142		40
Park City Group Inc ^(a)	271		4		ViaSat Inc ^(a)	788		56
PDF Solutions Inc ^(a)	461		9		Viavi Solutions Inc ^(a)	32,074		228
pdvWireless Inc ^(a)	1,672		39		Vonage Holdings Corp ^(a)	23,417		161
Progress Software Corp	24,966		672		West Corp	8,319		164
QAD Inc	1,853		45		Westell Technologies Inc ^(a)	9,001		4
Quality Systems Inc	10,460		135		Windstream Holdings Inc	16,970		133
Rosetta Stone Inc ^(a)	1,030		7				$	16,463
Seachange International Inc ^(a)	1,711		5		Textiles - 0.07%
SYNNEX Corp	40,864		4,190		Dixie Group Inc/The ^(a)	12,240		49
Tangoe Inc ^(a)	5,154		44		G&K Services Inc	4,036		382
Verint Systems Inc ^(a)	199,140		7,169		UniFirst Corp/MA	3,586		439
Zedge Inc ^(a)	1		—				$	870
Zynga Inc ^(a)	255,601		718		Toys, Games & Hobbies - 0.02%
		$	30,179		JAKKS Pacific Inc ^(a)	28,720		192
Storage & Warehousing - 0.09%
Mobile Mini Inc	40,667		1,031		Transportation - 2.10%
Wesco Aircraft Holdings Inc ^(a)	5,849		75		Air Transport Services Group Inc ^(a)	74,613		987
		$	1,106		ArcBest Corp	31,780		632
Supranational Bank - 0.03%					Ardmore Shipping Corp	11,074		65
Banco Latinoamericano de Comercio Exterior	14,977		404		Atlas Air Worldwide Holdings Inc ^(a)	31,974		1,338
SA					Celadon Group Inc	17,099		111
					Costamare Inc	5,228		34
Telecommunications - 1.35%					Covenant Transportation Group Inc ^(a)	14,502		232
ADTRAN Inc	40,241		730		DHT Holdings Inc	73,858		301
Alaska Communications Systems Group Inc	6,092		10		Dorian LPG Ltd ^(a)	27,039		152
(a)					Echo Global Logistics Inc ^(a)	1,786		38
ATN International Inc	8,200		554		Frontline Ltd/Bermuda	12,097		87
Aviat Networks Inc ^(a)	1,548		13		GasLog Ltd	31,104		477
Aware Inc ^(a)	17,409		91		Gener8 Maritime Inc ^(a)	7,099		30
Black Box Corp	25,533		294		Genesee & Wyoming Inc ^(a)	94,566		6,425
Calix Inc ^(a)	30,777		193		Golar LNG Ltd	12,158		266
Cincinnati Bell Inc ^(a)	28,349		557		Hornbeck Offshore Services Inc ^(a)	47,557		189
Communications Systems Inc	8,832		39		Hub Group Inc ^(a)	19,767		721
Comtech Telecommunications Corp	55,808		580		Kirby Corp ^(a)	97,233		5,732
Consolidated Communications Holdings Inc	4,337		104		Knight Transportation Inc	626		18
DigitalGlobe Inc ^(a)	74,388		1,868		Marten Transport Ltd	40,241		825
EarthLink Holdings Corp	24,763		142		Matson Inc	25,019		1,000
FairPoint Communications Inc ^(a)	767		12		Navios Maritime Acquisition Corp	16,474		21
Finisar Corp ^(a)	96,247		2,635		Nordic American Tankers Ltd	12,043		98
General Communication Inc ^(a)	11,390		180		Overseas Shipholding Group Inc	62,411		547
Globalstar Inc ^(a)	24,064		22		PAM Transportation Services Inc ^(a)	5,127		101
Harmonic Inc ^(a)	72,155		368		Patriot Transportation Holding Inc ^(a)	320		7
Hawaiian Telcom Holdco Inc ^(a)	4,538		93		Providence and Worcester Railroad Co	4,798		120
HC2 Holdings Inc	6,658		27		Radiant Logistics Inc ^(a)	3,750		9
IDT Corp - Class B	1,183		21		Roadrunner Transportation Systems Inc ^(a)	39,532		301
Infinera Corp ^(a)	5,651		44		Saia Inc ^(a)	25,528		910
Intelsat SA ^(a)	4,992		14		Scorpio Tankers Inc	222,234		851
Iridium Communications Inc ^(a)	111,889		912		Ship Finance International Ltd	29,632		375
Ixia ^(a)	29,453		351		Teekay Corp	8,797		57
KVH Industries Inc ^(a)	8,293		66		Teekay Tankers Ltd	76,658		163
Leap Wireless International Inc - Rights	64,745		188		Tidewater Inc	26,131		45
(a),(b),(c)					Universal Logistics Holdings Inc	893		11
Lumos Networks Corp ^(a)	8,702		124		USA Truck Inc ^(a)	10,419		86
					Werner Enterprises Inc	49,649		1,194


			Schedule of Investments
			SmallCap Value Fund II
			October 31, 2016


COMMON STOCKS (continued)	Shares Held		Value(000	's)
Transportation (continued)
XPO Logistics Inc ^(a)	29,573	$	974
YRC Worldwide Inc ^(a)	4,771		42
		$	25,572
Trucking & Leasing - 0.29%
GATX Corp	57,034		2,496
Greenbrier Cos Inc/The	24,456		770
Willis Lease Finance Corp ^(a)	9,311		248
		$	3,514
Water - 0.17%
American States Water Co	20,288		811
Artesian Resources Corp	11,708		331
California Water Service Group	5,563		173
Connecticut Water Service Inc	3,471		181
Consolidated Water Co Ltd	16,825		188
Middlesex Water Co	428		15
SJW Corp	4,202		213
York Water Co/The	6,751		213
		$	2,125
TOTAL COMMON STOCKS		$	1,149,998
INVESTMENT COMPANIES - 5.36%	Shares Held		Value(000	's)
Money Market Funds - 5.36%
Cash Account Trust - Government & Agency	491,440		491
Portfolio - Government Cash Managed
First American Government Obligations Fund	64,903,332		64,904
		$	65,395
TOTAL INVESTMENT COMPANIES		$	65,395
Total Investments		$	1,215,393
Other Assets and Liabilities - 0.31%		$	3,728
TOTAL NET ASSETS - 100.00%		$	1,219,121


Schedule of Investments
Tax-Exempt Bond Fund
							October 31, 2016


				Principal							Principal
	BONDS- 0.35	%		Amount (000's)			Value(000	's)	MUNICIPAL BONDS (continued)		Amount (000's)		Value(000	's)
	U.S. Municipals - 0.35%								California (continued)
	Oglala Sioux Tribe								Golden State Tobacco Securitization
	5.75%, 10/01/2025^(a),(b)		$	1,500		$	1,534		Corp (continued)
									5.75%, 06/01/2047	$	11,970	$	11,785
	TOTAL BONDS				$		1,534		Golden State Tobacco Securitization
				Principal					Corp (credit support from GOLDEN ST TOB
	MUNICIPAL BONDS - 99.45%			Amount (000's)			Value(000	's)	SECURITIZATION)
									5.00%, 06/01/2033 ^(c)		1,000		984
	Alabama - 2.66%
	Auburn University								Golden State Tobacco Securitization
	5.00%, 06/01/2038		$	555	$		591		Corp (credit support from ST APPROP)
									5.00%, 06/01/2033 ^(c)		1,170		1,379
	5.00%, 06/01/2038			945			1,007
	Birmingham Airport Authority (credit support								Lancaster Redevelopment Agency Successor
	from AGM)								Agency
	5.25%, 07/01/2030^(c)			1,000			1,124		6.50%, 08/01/2029		580		658
	Lower Alabama Gas District/The								Los Angeles Department of Water & Power
	5.00%, 09/01/2034			6,500			7,980		5.25%, 07/01/2038		1,000		1,068
	Selma Industrial Development Board								Los Angeles Unified School District/CA
	6.25%, 11/01/2033			700			796		5.00%, 07/01/2029		1,000		1,105
					$		11,498		Metropolitan Water District of Southern
	Alaska - 0.39%								California
	Borough of Matanuska-Susitna AK (credit								5.00%, 07/01/2029		1,150		1,267
	support from AGC)								Morongo Band of Mission Indians/The
									6.50%, 03/01/2028 ^(b)		500		531
	5.50%, 09/01/2023^(c)			1,500			1,686
									Oakland Unified School District/Alameda
	Arizona - 2.30%								County
	Arizona Department of Transportation State								5.00%, 08/01/2034		2,210		2,617
	Highway Fund Revenue								Palomar Health
	5.00%, 07/01/2026			1,500			1,603		4.00%, 08/01/2036		1,000		1,076
	City of Phoenix Civic Improvement Corp								Port of Los Angeles
	5.00%, 07/01/2034			1,000			1,095		5.00%, 08/01/2031		1,240		1,365
	Navajo Nation								Regents of the University of California
	5.50%, 12/01/2030^(b)			1,240			1,391		Medical Center Pooled Revenue
	Salt Verde Financial Corp								5.50%, 05/15/2027		1,375		1,424
	5.00%, 12/01/2032			4,860			5,857		Richmond Joint Powers Financing Authority
									6.25%, 07/01/2024		1,000		1,125
					$		9,946
									Riverside Community Properties Development
	California - 17.28%
									Inc
	Alum Rock Union Elementary School
									6.00%, 10/15/2038		1,150		1,402
	District
									Sacramento Area Flood Control
	5.25%, 08/01/2043			1,000			1,197
									Agency (credit support from BAM)
	Bay Area Toll Authority								5.00%, 10/01/2039 ^(c)		1,340		1,549
	5.00%, 04/01/2034			2,500			2,744
									San Diego Unified School District/CA
	California Educational Facilities Authority								0.00%, 07/01/2032 ^(e)		5,000		2,990
	5.00%, 12/29/2015^(d)			8,148			8,863
	5.00%, 01/01/2038^(d)			467			488		Southern California Public Power Authority
	5.00%, 01/01/2038^(d)			1,153			1,209		5.25%, 07/01/2028		1,000		1,182
	5.00%, 10/01/2038^(d)			2,700			2,914		University of California
									5.00%, 05/15/2037		1,500		1,759
	California Health Facilities Financing
									5.75%, 05/15/2025		1,380		1,545
	Authority
									West Contra Costa Unified School District
	4.00%, 11/15/2041			2,000			2,117
	5.00%, 11/15/2046^(d)			1,695			1,979		5.25%, 08/01/2033		1,000		1,208
												$	74,600
	California Pollution Control Financing
	Authority								Colorado - 3.37%
	4.30%, 07/01/2040			2,000			2,157		City of Colorado Springs CO Utilities System
	California Statewide Communities								Revenue
									0.62%, 11/01/2028 ^(f)		10,000		10,000
	Development Authority
	5.00%, 12/01/2036^(b)			4,500			5,042		Colorado Health Facilities Authority
	6.25%, 11/15/2019^(b)			400			425		5.00%, 01/01/2037		1,000		1,100
	6.63%, 11/15/2024^(b)			500			573		Denver Convention Center Hotel Authority
									5.00%, 12/01/2036 ^(g)		1,000		1,124
	California Statewide Communities
	Development Authority (credit support from								Platte River Power Authority
	FHA INS)								5.00%, 06/01/2026		1,135		1,251
	6.63%, 08/01/2029^(c)			890			1,027		Regional Transportation District
	California Statewide Communities								6.00%, 01/15/2041		450		511
	Development Authority (credit support from								6.50%, 01/15/2030		500		579
	GNMA COLL)											$	14,565
	4.90%, 07/20/2039^(c)			500			534		Connecticut - 1.62%
	City of Los Angeles Department of Airports								Mohegan Tribal Finance Authority
									7.00%, 02/01/2045 ^(b)		5,500		5,774
	5.00%, 05/15/2035			1,500			1,686
	City of Vernon CA Electric System Revenue								State of Connecticut (credit support from
	5.13%, 08/01/2021			320			346		ACA)
									6.60%, 07/01/2024 ^(c)		1,215		1,219
	5.13%, 08/01/2021			545			599
	Golden State Tobacco Securitization Corp											$	6,993
	5.30%, 06/01/2037			2,700			2,681


Schedule of Investments
Tax-Exempt Bond Fund
						October 31, 2016


				Principal							Principal
	MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)
	District of Columbia - 1.51%							Illinois (continued)
	District of Columbia							Illinois Finance Authority (continued)
	5.00%, 12/01/2023		$	1,785	$	1,992		6.50%, 11/01/2038		$	1,000	$	1,110
	5.00%, 12/01/2024			715		799		7.00%, 02/15/2018			210		219
	6.38%, 10/01/2034			1,000		1,152		7.25%, 11/01/2038			1,000		1,125
	District of Columbia Water & Sewer							Illinois State Toll Highway Authority
	Authority (credit support from AGM)							5.00%, 12/01/2032			5,300		6,274
	5.50%, 10/01/2017^(c)			500		522		5.00%, 01/01/2040 ^(d)			2,000		2,301
	District of Columbia Water & Sewer							5.25%, 01/01/2030			1,000		1,108
	Authority (credit support from AGM-CR							Metropolitan Pier & Exposition
	NATL)							Authority (credit support from NATL)
	5.50%, 10/01/2041^(c)			2,000		2,088		5.50%, 06/15/2029 ^(c)			2,410		2,973
					$	6,553		Metropolitan Water Reclamation District of
	Florida - 2.05%							Greater Chicago
	City of Lakeland FL Department of Electric							5.00%, 12/01/2027			5,000		6,161
	Utilities							5.00%, 12/01/2045			1,000		1,155
	5.25%, 10/01/2036			1,000		1,341		State of Illinois
	County of Miami-Dade FL							5.50%, 07/01/2027			3,410		3,806
	4.00%, 10/01/2040			3,000		3,171		United City of Yorkville IL
	County of Miami-Dade FL Aviation							5.75%, 03/01/2028			500		505
	Revenue (credit support from AGC)											$	54,622
	5.25%, 10/01/2033^(c)			525		568		Indiana - 0.88%
	5.25%, 10/01/2033^(c)			1,475		1,579		Indiana Finance Authority
	Escambia County Health Facilities							5.00%, 10/01/2044			700		779
	Authority (credit support from AMBAC)							5.38%, 11/01/2032			1,000		1,076
	5.95%, 07/01/2020^(c)			65		69		Indiana Municipal Power Agency
	School Board of Miami-Dade							6.00%, 01/01/2039			1,000		1,107
	County/The (credit support from AGC)							Town of Shoals IN
	5.25%, 05/01/2028^(c)			2,000		2,131		7.25%, 11/01/2043			700		829
					$	8,859						$	3,791
	Georgia - 0.27%							Iowa- 0.30	%
	City of Atlanta GA Water & Wastewater							City of Altoona IA (credit support from CITY
	Revenue							APPROP)
	6.00%, 11/01/2027			1,000		1,146		5.75%, 06/01/2031 ^(c)			1,200		1,292

	Idaho- 0.57	%						Kansas - 0.26%
	Idaho Health Facilities Authority							Kansas Development Finance Authority
	6.65%, 02/15/2021			2,000		2,461		5.50%, 11/15/2029			1,000		1,124

	Illinois - 12.63%							Kentucky - 1.38%
	Chicago O'Hare International Airport							Kentucky Economic Development Finance
	5.00%, 01/01/2033			2,000		2,338		Authority
	City of Chicago IL							5.38%, 08/15/2024			1,000		1,068
	5.00%, 01/01/2034			3,000		3,030		5.63%, 08/15/2027			1,000		1,071
	5.25%, 01/01/2029			2,000		2,111		Kentucky Economic Development Finance
	7.13%, 03/15/2022			400		398		Authority (credit support from AGC)
	7.46%, 02/15/2026			684		484		6.00%, 12/01/2033 ^(c)			1,000		1,061
	City of Chicago IL (credit support from AGC)							Kentucky State Property & Building
	5.25%, 01/01/2025^(c)			2,000		2,084		Commission (credit support from AGC)
	City of Chicago IL Wastewater Transmission							5.25%, 02/01/2025 ^(c)			885		968
	Revenue							5.25%, 02/01/2025 ^(c)			115		125
	5.00%, 01/01/2030			1,000		1,134		Paducah Electric Plant Board (credit support
	5.00%, 01/01/2032			1,000		1,121		from AGC)
	5.00%, 01/01/2033			2,000		2,232		5.25%, 10/01/2035 ^(c)			1,500		1,649
	City of Chicago IL Wastewater Transmission											$	5,942
	Revenue (credit support from BHAC)							Louisiana - 2.19%
	5.50%, 01/01/2038^(c)			1,000		1,042		Lafayette Public Trust Financing
	City of Chicago IL Waterworks Revenue							Authority (credit support from AGM)
	5.00%, 11/01/2028			1,000		1,157		5.25%, 10/01/2030 ^(c)			1,000		1,126
	Gilberts Special Service Area No 24/IL							Louisiana Public Facilities Authority
	5.38%, 03/01/2034			299		265		8.00%, 07/01/2039			1,000		565
	Huntley Special Service Area No							8.38%, 07/01/2039			600		339
	10/IL (credit support from AGC)							Louisiana Public Facilities Authority (credit
	5.10%, 03/01/2029^(c)			993		1,004		support from FNMA)
	Illinois Finance Authority							0.00%, 12/01/2019 ^(c),(e)			1,500		1,441
	5.00%, 11/01/2030			1,000		1,188		New Orleans Aviation Board (credit support
	5.00%, 02/15/2041			1,000		1,090		from AGC)
	5.38%, 08/15/2024			500		550		6.00%, 01/01/2023 ^(c)			1,000		1,098
	5.50%, 08/01/2037			1,000		1,035		Parish of St John the Baptist LA
	5.75%, 08/15/2030			1,050		1,182		5.13%, 06/01/2037			4,865		4,931
	5.75%, 11/15/2037			1,500		1,576						$	9,500
	6.00%, 03/01/2038			1,540		1,718
	6.25%, 11/15/2035			350		396
	6.25%, 11/15/2035			650		750


Schedule of Investments
Tax-Exempt Bond Fund
						October 31, 2016


				Principal						Principal
	MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)		Amount (000's)		Value (000	's)
	Maine- 0.64	%						Nevada (continued)
	Maine Health & Higher Educational Facilities							Las Vegas Redevelopment
	Authority							Agency (continued)
	5.00%, 07/01/2046		$	2,500	$	2,745		5.00%, 06/15/2045	$	2,000	$	2,271
											$	5,482
	Maryland - 0.54%							New Hampshire - 0.24%
	Maryland Economic Development Corp							City of Manchester NH General Airport
	5.00%, 03/31/2041			1,000		1,131		Revenue (credit support from AGM)
	5.75%, 06/01/2035			545		600		5.13%, 01/01/2030 ^(c)		1,000		1,054
	Maryland Health & Higher Educational
	Facilities Authority							New Jersey - 3.06%
	6.00%, 07/01/2041			500		589		Casino Reinvestment Development Authority
					$	2,320		5.25%, 11/01/2039		750		773
	Massachusetts - 1.96%							New Jersey Economic Development
	Massachusetts Bay Transportation Authority							Authority
	5.25%, 07/01/2028			2,000		2,625		3.35%, 07/15/2036		1,000		946
	Massachusetts Development Finance Agency							5.00%, 09/01/2034		1,000		1,110
	5.75%, 12/01/2042			1,000		1,116		5.75%, 04/01/2031		1,005		1,167
	Massachusetts Educational Financing							5.75%, 06/01/2031		550		611
	Authority							New Jersey Educational Facilities
	4.90%, 07/01/2028			2,450		2,565		Authority (credit support from AGM)
	Massachusetts Health & Educational Facilities							5.00%, 07/01/2035 ^(c)		1,000		1,167
	Authority (credit support from GO OF UNIV)							New Jersey Housing & Mortgage Finance
	5.00%, 07/01/2038^(c)			1,000		1,029		Agency
	Massachusetts State College Building							6.38%, 10/01/2028		70		72
	Authority (credit support from ST APPROP)							New Jersey Transportation Trust Fund
	5.50%, 05/01/2039^(c)			1,000		1,111		Authority
					$	8,446		5.25%, 06/15/2032		2,000		2,238
	Michigan - 2.38%							5.25%, 06/15/2034		2,250		2,516
	City of Detroit MI Sewage Disposal System							Newark Housing Authority (credit support
	Revenue (credit support from AGM)							from AGM MUN GOVT GTD)
	7.00%, 07/01/2027^(c)			1,500		1,708		5.00%, 12/01/2038 ^(c)		2,300		2,601
	Great Lakes Water Authority Water Supply										$	13,201
	System Revenue							New York - 11.91%
	5.00%, 07/01/2036			4,500		5,101		Brooklyn Arena Local Development Corp
	Michigan Finance Authority							6.38%, 07/15/2043		1,400		1,632
	5.00%, 11/15/2034			2,000		2,303		Brooklyn Arena Local Development
	Wayne County Airport Authority							Corp (credit support from AGM)
	5.00%, 12/01/2045			1,000		1,151		4.00%, 07/15/2035 ^(c)		1,700		1,848
					$	10,263		Hudson Yards Infrastructure Corp
	Minnesota - 0.68%							5.75%, 02/15/2047		2,500		2,921
	City of Minneapolis MN							Metropolitan Transportation Authority
	6.75%, 11/15/2032			500		559		5.00%, 11/15/2034		1,390		1,647
	City of Minneapolis MN (credit support from							5.00%, 11/15/2036		3,000		3,594
	AGC)							5.25%, 11/15/2030		1,500		1,692
	6.50%, 11/15/2038^(c)			165		183		MTA Hudson Rail Yards Trust Obligations
	6.50%, 11/15/2038^(c)			835		918		5.00%, 11/15/2051		1,000		1,114
	City of Rochester MN							5.00%, 11/15/2056		2,500		2,825
	5.00%, 11/15/2034			1,000		1,305		New York City Industrial Development
					$	2,965		Agency (credit support from AGC)
								6.13%, 01/01/2029 ^(c)		1,000		1,100
	Missouri - 0.70%
	City of St Louis MO Airport Revenue (credit							New York City Transitional Finance Authority
	support from NATL)							Building Aid Revenue (credit support from
	5.50%, 07/01/2028^(c)			1,500		1,894		ST AID WITHHLDG)
	Health & Educational Facilities Authority of							5.25%, 01/15/2039 ^(c)		2,145		2,328
	the State of Missouri							New York Counties Tobacco Trust VI
	5.00%, 02/01/2046^(g)			1,000		1,110		5.00%, 06/01/2031		215		250
					$	3,004		5.00%, 06/01/2036		740		845
	Nebraska - 0.74%							5.00%, 06/01/2041		400		452
	Municipal Energy Agency of Nebraska (credit							5.00%, 06/01/2045		1,000		1,103
	support from BHAC)							New York Liberty Development Corp
	5.13%, 04/01/2029^(c)			1,000		1,098		5.00%, 11/15/2031		1,000		1,147
	OmahaPublicPower District							5.00%, 09/15/2040		1,000		1,155
	5.50%, 02/01/2039			1,000		1,058		5.25%, 10/01/2035		4,625		5,849
	University of Nebraska							New York Liberty Development Corp (credit
	5.25%, 07/01/2039			1,000		1,092		support from GO OF AUTH)
								5.00%, 12/15/2041 ^(c)		1,000		1,147
					$	3,248
								New York State Dormitory Authority (credit
	Nevada - 1.27%
								support from AGC ST AID WITHHLDG)
	County of Clark Department of Aviation							5.00%, 10/01/2023 ^(c)		1,860		2,076
	5.13%, 07/01/2034			1,000		1,102		5.00%, 10/01/2023 ^(c)		140		154
	Las Vegas Redevelopment Agency
	5.00%, 06/15/2040			1,850		2,109		New York State Thruway Authority
								5.25%, 01/01/2056		4,395		5,205


Schedule of Investments
Tax-Exempt Bond Fund
						October 31, 2016


				Principal							Principal
	MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)	MUNICIPAL BONDS (continued)			Amount (000's)		Value(000	's)
	New York (continued)							Tennessee - 1.14%
	New York Transportation Development Corp							Metropolitan Government Nashville &
	5.00%, 08/01/2021		$	3,500	$	3,897		Davidson County Health & Educational Facs
	5.00%, 07/01/2046			3,125		3,406		Bd
	Tompkins County Development Corp							5.00%, 07/01/2046		$	4,250	$	4,904
	5.00%, 07/01/2027			1,115		1,196
	Westchester County Local Development							Texas- 7.59	%
	Corp							Capital Area Cultural Education Facilities
	5.00%, 11/01/2046			2,500		2,808		Finance Corp
					$	51,391		6.13%, 04/01/2045			1,000		1,130
	North Carolina - 0.60%							Central Texas Turnpike System
	City of Raleigh NC Combined Enterprise							5.00%, 08/15/2031			1,285		1,485
	System Revenue							City of Houston TX Airport System Revenue
	5.00%, 03/01/2031			1,000		1,142		5.00%, 07/01/2029			2,000		2,235
	North Carolina Medical Care Commission							Harris County Industrial Development Corp
	5.00%, 10/01/2033^(g)			1,250		1,462		5.00%, 02/01/2023			400		440
					$	2,604		Harris County-Houston Sports Authority
	Ohio- 3.97	%						5.00%, 11/15/2030			3,000		3,524
	American Municipal Power Inc							Metropolitan Transit Authority of Harris
	5.25%, 02/15/2033			2,575		2,985		County
	Buckeye Tobacco Settlement Financing							5.00%, 11/01/2033			2,435		2,916
	Authority							Mission Economic Development Corp
								5.75%, 10/01/2031 ^(b)			1,000		1,056
	6.00%, 06/01/2042			1,500		1,430
	City of Cincinnati OH							5.75%, 10/01/2031 ^(b)			1,000		1,056
	5.00%, 12/01/2032			815		944		New Hope Cultural Education Facilities
	City of Cleveland OH Airport System							Finance Corp
	Revenue (credit support from AGM)							5.00%, 07/01/2047			3,000		3,243
	5.00%, 01/01/2024^(c)			1,075		1,288		North Texas Health Facilities Development
	County of Hamilton OH							Corp (credit support from AGM)
	5.00%, 01/01/2036			2,435		2,679		5.00%, 09/01/2024 ^(c)			1,000		1,030
	5.00%, 01/01/2046			2,500		2,716		North Texas Tollway Authority
	Ohio Air Quality Development Authority							5.00%, 01/01/2045			1,000		1,153
	3.75%, 12/01/2023			3,000		2,800		5.63%, 01/01/2033			385		406
	5.63%, 06/01/2018			1,000		1,020		5.63%, 01/01/2033			180		189
	Ohio Housing Finance Agency (credit support							5.63%, 01/01/2033			435		459
	from GNMA/FNMA/FHLMC)							5.75%, 01/01/2033			1,130		1,194
	5.20%, 09/01/2029^(c)			420		437		Port Beaumont Navigation District
	Ohio Water Development Authority							7.25%, 02/01/2036 ^(b)			4,000		4,226
	4.00%, 01/01/2034			1,000		842		Sea Breeze Public Facility Corp
					$	17,141		6.50%, 01/01/2046			100		104
	Oklahoma - 0.19%							Tarrant County Cultural Education Facilities
	Tulsa Airports Improvement Trust							Finance Corp
	5.00%, 06/01/2035^(f)			700		809		5.00%, 11/15/2037			3,060		3,576
								Tarrant County Cultural Education Facilities
	Pennsylvania - 4.56%							Finance Corp (credit support from AGC)
								6.25%, 07/01/2028 ^(c)			1,000		1,100
	Allegheny County Industrial Development
	Authority							Texas A&M University
	6.00%, 07/15/2038			1,000		1,072		5.00%, 05/15/2027			1,000		1,100
	City of Scranton PA							Texas Private Activity Bond Surface
	8.50%, 09/01/2022^(a)			600		663		Transportation Corp
	Pennsylvania Economic Development							7.00%, 12/31/2038			1,000		1,237
	Financing Authority											$	32,859
	5.00%, 12/31/2034			5,635		6,333		Virgin Islands - 0.38%
	6.00%, 06/01/2031			500		500		Virgin Islands Public Finance Authority
	Pennsylvania Turnpike Commission							5.00%, 10/01/2025			1,650		1,629
	5.00%, 12/01/2045			2,000		2,283
	5.00%, 12/01/2046			3,000		3,357		Virginia - 1.50%
	5.75%, 12/01/2028			420		483		County of Botetourt VA
	5.75%, 12/01/2028			380		450		6.00%, 07/01/2034			1,000		1,091
	6.00%, 12/01/2034			435		509		6.00%, 07/01/2044			1,000		1,087
	6.00%, 12/01/2034			65		78		Fairfax County Economic Development
	School District of Philadelphia/The (credit							Authority
	support from ST AID WITHHLDG)							5.00%, 10/01/2036			1,000		1,147
	5.00%, 09/01/2032^(c),(g)			3,500		3,920		Fairfax County Industrial Development
					$	19,648		Authority
								5.00%, 05/15/2035 ^(d)			700		803
	South Carolina - 1.34%
	South Carolina Jobs-Economic Development							Roanoke Economic Development Authority
	Authority (credit support from AGC)							6.63%, 12/01/2044			1,295		1,429
	5.38%, 02/01/2029^(c)			1,000		1,077		Shops at White Oak Village Community
	South Carolina Public Service Authority							Development Authority/The
	5.25%, 12/01/2055			4,000		4,714		5.30%, 03/01/2017			100		101
					$	5,791


			Principal
MUNICIPAL BONDS (continued)		Amount (000's)				Value (000's)
Virginia (continued)
								Portfolio Summary (unaudited)
Washington County Industrial Development
Authority/VA								Sector	Percent
	7.50%, 07/01/2029	$	750		$	836		Revenue Bonds	64.51	%
					$	6,494		Insured	16.10	%
								Prerefunded	10.31	%
Washington - 1.20%
								General Obligation Unlimited	6.69	%
FYI Properties
								Tax Allocation	1.17	%
	5.50%, 06/01/2039		1,000			1,100
								Government	0.35	%
State of Washington
								Special Assessment	0.29	%
	6.40%, 06/01/2017		770			795
								Certificate Participation	0.20	%
Washington Health Care Facilities Authority
								Special Tax	0.18	%
	7.38%, 03/01/2038		1,000			1,147
								Liability For Floating Rate Notes Issued	(2.19	)%
Washington Health Care Facilities
								Other Assets and Liabilities	2.39	%
Authority (credit support from AGM)
	5.50%, 08/15/2038^(c)		1,000			1,064		TOTAL NET ASSETS	100.00	%
Washington Higher Education Facilities
Authority
	5.63%, 10/01/2040		1,000			1,094
					$	5,200
West Virginia - 0.38%
County of Ohio WV
	5.85%, 06/01/2034		250			257
West Virginia Hospital Finance Authority
	5.50%, 06/01/2034		1,250			1,393
					$	1,650
Wisconsin - 2.82%
City of Superior WI (credit support from GO
OF CORP)
	5.38%, 11/01/2021^(c)		750			777
County of Milwaukee WI Airport
Revenue (credit support from AGM)
	5.25%, 12/01/2025^(c)		4,000			4,015
Public Finance Authority
	4.00%, 08/01/2035		1,580			1,585
	5.25%, 04/01/2030		1,400			1,533
State of Wisconsin (credit support from ST
APPROP)
	5.38%, 05/01/2025^(c)		1,000			1,104
Wisconsin Health & Educational Facilities
Authority
	5.00%, 07/01/2041		1,590			1,762
	6.38%, 02/15/2029		500			561
	6.63%, 02/15/2039		720			812
					$	12,149
TOTAL MUNICIPAL BONDS					$	429,575
Total Investments					$	431,109
Liability for Floating Rate Notes Issued in Conjunction with
Securities Held - (2.19)%
Notes with interest rates of 0.66% - 0.71% at		$	(9,470	)	$	(9,470	)
October 31, 2016 and contractual maturity of
collateral from 2017-2024.^(h)
Total Net Investments					$	421,639
Other Assets and Liabilities - 2.39%					$	10,314
TOTAL NET ASSETS - 100.00%					$	431,953


(a)	Security is Illiquid. At the end of the period, the value of these securities
	totaled $2,197 or 0.51% of net assets.
(b)	Security exempt from registration under Rule 144A of the Securities Act of
	1933. These securities may be resold in transactions exempt from
	registration, normally to qualified institutional buyers. At the end of the
	period, the value of these securities totaled $21,608 or 5.00% of net assets.
(c)	Credit support indicates investments that benefit from credit enhancement
	or liquidity support provided by a third party bank, institution, or
	government agency.
(d)	Security or portion of underlying security related to Inverse Floaters
	entered into by the Fund. See Notes to Financial Statements for additional
	information.
(e)	Non-Income Producing Security
(f)	Variable Rate. Rate shown is in effect at October 31, 2016.
(g)	Security purchased on a when-issued basis.
(h)	Floating rate securities. The interest rate(s) shown reflect the rates in
	effect at October 31, 2016.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
CORE PLUS BOND FUND
Class J shares
2016	$	10.87	$	0.25	$	0.23		$	0.48		($	0.23	)	($	0.23	)	$	11.12
2015		11.03		0.23		(0.15	)		0.08			(0.24	)		(0.24	)		10.87
2014		10.86		0.23		0.19			0.42			(0.25	)		(0.25	)		11.03
2013		11.16		0.24		(0.31	)		(0.07	)		(0.23	)		(0.23	)		10.86
2012		10.69		0.28		0.51			0.79			(0.32	)		(0.32	)		11.16
Institutional shares
2016		10.79		0.28		0.23			0.51			(0.26	)		(0.26	)		11.04
2015		10.96		0.28		(0.17	)		0.11			(0.28	)		(0.28	)		10.79
2014		10.79		0.27		0.20			0.47			(0.30	)		(0.30	)		10.96
2013		11.09		0.28		(0.30	)		(0.02	)		(0.28	)		(0.28	)		10.79
2012		10.62		0.33		0.51			0.84			(0.37	)		(0.37	)		11.09
R-1 shares
2016		10.79		0.19		0.23			0.42			(0.17	)		(0.17	)		11.04
2015		10.96		0.18		(0.16	)		0.02			(0.19	)		(0.19	)		10.79
2014		10.79		0.18		0.19			0.37			(0.20	)		(0.20	)		10.96
2013		11.09		0.19		(0.31	)		(0.12	)		(0.18	)		(0.18	)		10.79
2012		10.62		0.24		0.50			0.74			(0.27	)		(0.27	)		11.09
R-2 shares
2016		10.69		0.20		0.22			0.42			(0.18	)		(0.18	)		10.93
2015		10.86		0.19		(0.16	)		0.03			(0.20	)		(0.20	)		10.69
2014		10.70		0.19		0.19			0.38			(0.22	)		(0.22	)		10.86
2013		10.99		0.20		(0.29	)		(0.09	)		(0.20	)		(0.20	)		10.70
2012		10.53		0.25		0.50			0.75			(0.29	)		(0.29	)		10.99
R-3 shares
2016		10.73		0.22		0.23			0.45			(0.20	)		(0.20	)		10.98
2015		10.90		0.21		(0.16	)		0.05			(0.22	)		(0.22	)		10.73
2014		10.74		0.21		0.19			0.40			(0.24	)		(0.24	)		10.90
2013		11.03		0.22		(0.29	)		(0.07	)		(0.22	)		(0.22	)		10.74
2012		10.57		0.27		0.50			0.77			(0.31	)		(0.31	)		11.03
R-4 shares
2016		10.93		0.24		0.24			0.48			(0.22	)		(0.22	)		11.19
2015		11.10		0.24		(0.17	)		0.07			(0.24	)		(0.24	)		10.93
2014		10.92		0.24		0.20			0.44			(0.26	)		(0.26	)		11.10
2013		11.22		0.24		(0.30	)		(0.06	)		(0.24	)		(0.24	)		10.92
2012		10.74		0.29		0.52			0.81			(0.33	)		(0.33	)		11.22
R-5 shares
2016		10.74		0.25		0.23			0.48			(0.23	)		(0.23	)		10.99
2015		10.91		0.25		(0.17	)		0.08			(0.25	)		(0.25	)		10.74
2014		10.75		0.24		0.19			0.43			(0.27	)		(0.27	)		10.91
2013		11.04		0.25		(0.29	)		(0.04	)		(0.25	)		(0.25	)		10.75
2012		10.58		0.30		0.50			0.80			(0.34	)		(0.34	)		11.04


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


4.46%	(c)	$	157,791	0.79	%	0.82	%	2.29	%	168.4	%
0.71	(c)		157,975	0.89		0.92		2.14		208.3
3.95	(c)		166,719	0.92		0.96		2.11		204.5
(0.61	) (c)		173,945	0.94		1.14		2.17		205.6
7.49	(c)		201,223	0.99		1.20		2.60		218.6

4.80			3,630,319	0.50		–		2.58		168.4
1.01			3,861,879	0.50		–		2.53		208.3
4.40			3,556,478	0.52	(d)	–		2.49		204.5
(0.20	)		1,925,899	0.52	(d)	–		2.58		205.6
8.04			1,828,579	0.53	(d)	–		3.04		218.6

3.89			5,354	1.38		–		1.70		168.4
0.14			6,480	1.38		–		1.67		208.3
3.49			4,667	1.40		–		1.64		204.5
(1.07	)		5,969	1.40		–		1.71		205.6
7.10			11,645	1.41		–		2.18		218.6

3.98			10,445	1.25		–		1.83		168.4
0.28			11,029	1.25		–		1.79		208.3
3.57			10,799	1.27		–		1.77		204.5
(0.85	)		14,978	1.27		–		1.83		205.6
7.21			19,392	1.28		–		2.32		218.6

4.24			26,396	1.07		–		2.01		168.4
0.45			30,643	1.07		–		1.97		208.3
3.74			27,332	1.09		–		1.95		204.5
(0.67	)		32,743	1.09		–		2.01		205.6
7.37			38,896	1.10		–		2.50		218.6

4.44			21,651	0.88		–		2.20		168.4
0.63			23,662	0.88		–		2.16		208.3
4.05			27,091	0.90		–		2.14		204.5
(0.57	)		30,315	0.90		–		2.20		205.6
7.64			37,187	0.91		–		2.67		218.6

4.56			58,656	0.76		–		2.32		168.4
0.76			60,816	0.76		–		2.29		208.3
4.06			46,871	0.78		–		2.26		204.5
(0.37	)		44,281	0.78		–		2.32		205.6
7.70			70,930	0.79		–		2.79		218.6


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
DIVERSIFIED INTERNATIONAL FUND
Class J shares
2016	$	11.43	$	0.15	($	0.23	)	($	0.08	)	($	0.12	)	($	0.12	)	$	11.23
2015		11.83		0.16		(0.43	)		(0.27	)		(0.13	)		(0.13	)		11.43
2014		11.67		0.14		0.21			0.35			(0.19	)		(0.19	)		11.83
2013		9.77		0.15		1.92			2.07			(0.17	)		(0.17	)		11.67
2012		9.31		0.16		0.41			0.57			(0.11	)		(0.11	)		9.77
Institutional shares
2016		11.53		0.19		(0.23	)		(0.04	)		(0.17	)		(0.17	)		11.32
2015		11.94		0.21		(0.44	)		(0.23	)		(0.18	)		(0.18	)		11.53
2014		11.77		0.19		0.21			0.40			(0.23	)		(0.23	)		11.94
2013		9.87		0.20		1.92			2.12			(0.22	)		(0.22	)		11.77
2012		9.40		0.21		0.41			0.62			(0.15	)		(0.15	)		9.87
R-1 shares
2016		11.48		0.09		(0.23	)		(0.14	)		(0.06	)		(0.06	)		11.28
2015		11.87		0.11		(0.43	)		(0.32	)		(0.07	)		(0.07	)		11.48
2014		11.70		0.09		0.20			0.29			(0.12	)		(0.12	)		11.87
2013		9.80		0.11		1.91			2.02			(0.12	)		(0.12	)		11.70
2012		9.33		0.13		0.40			0.53			(0.06	)		(0.06	)		9.80
R-2 shares
2016		11.43		0.11		(0.22	)		(0.11	)		(0.07	)		(0.07	)		11.25
2015		11.83		0.12		(0.43	)		(0.31	)		(0.09	)		(0.09	)		11.43
2014		11.67		0.09		0.21			0.30			(0.14	)		(0.14	)		11.83
2013		9.77		0.12		1.92			2.04			(0.14	)		(0.14	)		11.67
2012		9.30		0.14		0.40			0.54			(0.07	)		(0.07	)		9.77
R-3 shares
2016		11.48		0.13		(0.22	)		(0.09	)		(0.10	)		(0.10	)		11.29
2015		11.89		0.14		(0.44	)		(0.30	)		(0.11	)		(0.11	)		11.48
2014		11.72		0.12		0.22			0.34			(0.17	)		(0.17	)		11.89
2013		9.83		0.14		1.91			2.05			(0.16	)		(0.16	)		11.72
2012		9.35		0.16		0.41			0.57			(0.09	)		(0.09	)		9.83
R-4 shares
2016		11.66		0.15		(0.23	)		(0.08	)		(0.12	)		(0.12	)		11.46
2015		12.07		0.17		(0.45	)		(0.28	)		(0.13	)		(0.13	)		11.66
2014		11.90		0.14		0.22			0.36			(0.19	)		(0.19	)		12.07
2013		9.97		0.16		1.95			2.11			(0.18	)		(0.18	)		11.90
2012		9.49		0.18		0.41			0.59			(0.11	)		(0.11	)		9.97
R-5 shares
2016		11.64		0.16		(0.22	)		(0.06	)		(0.14	)		(0.14	)		11.44
2015		12.05		0.18		(0.44	)		(0.26	)		(0.15	)		(0.15	)		11.64
2014		11.88		0.16		0.22			0.38			(0.21	)		(0.21	)		12.05
2013		9.96		0.17		1.94			2.11			(0.19	)		(0.19	)		11.88
2012		9.48		0.19		0.41			0.60			(0.12	)		(0.12	)		9.96


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(0.66)%	(c)	$	164,531	1.17	%	1.20	%	1.40	%	48.2	%
(2.26	) (c)		181,039	1.25		1.28		1.38		51.7
2.98	(c)		200,044	1.26		1.30		1.16		67.0
21.40	(c)		204,288	1.30		1.50		1.43		76.9
6.23	(c)		183,831	1.40		1.59		1.76		74.2

(0.34	)		7,449,362	0.85		–		1.73		48.2
(1.90	)		5,579,231	0.85		–		1.75		51.7
3.45			4,849,850	0.85		–		1.58		67.0
21.79			4,208,838	0.87		0.87		1.89		76.9
6.76			2,833,609	0.89		0.89		2.25		74.2

(1.20	)		4,570	1.72		–		0.83		48.2
(2.80	) (d)		5,298	1.73		–		0.89		51.7
2.56	(d)		6,020	1.73		–		0.72		67.0
20.82			7,021	1.74		–		0.99		76.9
5.81			7,944	1.76		–		1.42		74.2

(0.99	)		5,778	1.59		–		1.04		48.2
(2.64	)		6,922	1.60		–		1.01		51.7
2.60			9,816	1.60		–		0.79		67.0
21.04			12,328	1.61		–		1.13		76.9
5.92			13,572	1.63		–		1.54		74.2

(0.79	)		27,288	1.41		–		1.16		48.2
(2.54	)		37,260	1.42		–		1.18		51.7
2.89			50,493	1.42		–		1.00		67.0
21.11			56,229	1.43		–		1.30		76.9
6.24			53,185	1.45		–		1.70		74.2

(0.65	)		36,763	1.22		–		1.32		48.2
(2.30	)		36,818	1.23		–		1.39		51.7
3.05			41,798	1.23		–		1.17		67.0
21.44			51,609	1.24		–		1.51		76.9
6.35			41,896	1.26		–		1.91		74.2

(0.52	)		61,816	1.10		–		1.45		48.2
(2.16	)		70,739	1.11		–		1.51		51.7
3.18			79,982	1.11		–		1.33		67.0
21.51			81,793	1.12		–		1.60		76.9
6.50			80,363	1.14		–		2.00		74.2

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
EQUITY INCOME FUND
Institutional shares
2016	$	25.83	$	0.66	$	0.86		$	1.52		($	0.63	)	($	0.63	)	$	26.72
2015		26.30		0.64		(0.50	)		0.14			(0.61	)		(0.61	)		25.83
2014		23.17		0.65		3.04			3.69			(0.56	)		(0.56	)		26.30
2013		19.49		0.64		3.65			4.29			(0.61	)		(0.61	)		23.17
2012		17.59		0.58		1.87			2.45			(0.55	)		(0.55	)		19.49
R-1 shares
2016		25.71		0.44		0.84			1.28			(0.39	)		(0.39	)		26.60
2015		26.17		0.41		(0.49	)		(0.08	)		(0.38	)		(0.38	)		25.71
2014		23.06		0.45		3.00			3.45			(0.34	)		(0.34	)		26.17
2013		19.40		0.45		3.64			4.09			(0.43	)		(0.43	)		23.06
2012		17.52		0.42		1.86			2.28			(0.40	)		(0.40	)		19.40
R-2 shares
2016		25.79		0.47		0.85			1.32			(0.43	)		(0.43	)		26.68
2015		26.26		0.45		(0.51	)		(0.06	)		(0.41	)		(0.41	)		25.79
2014		23.13		0.47		3.04			3.51			(0.38	)		(0.38	)		26.26
2013		19.46		0.48		3.65			4.13			(0.46	)		(0.46	)		23.13
2012		17.57		0.43		1.89			2.32			(0.43	)		(0.43	)		19.46
R-3 shares
2016		25.73		0.51		0.85			1.36			(0.48	)		(0.48	)		26.61
2015		26.19		0.50		(0.50	)		–			(0.46	)		(0.46	)		25.73
2014		23.07		0.51		3.03			3.54			(0.42	)		(0.42	)		26.19
2013		19.41		0.51		3.65			4.16			(0.50	)		(0.50	)		23.07
2012		17.53		0.46		1.88			2.34			(0.46	)		(0.46	)		19.41
R-4 shares
2016		25.77		0.56		0.85			1.41			(0.53	)		(0.53	)		26.65
2015		26.24		0.54		(0.49	)		0.05			(0.52	)		(0.52	)		25.77
2014		23.12		0.56		3.03			3.59			(0.47	)		(0.47	)		26.24
2013		19.45		0.55		3.66			4.21			(0.54	)		(0.54	)		23.12
2012		17.56		0.49		1.89			2.38			(0.49	)		(0.49	)		19.45
R-5 shares
2016		25.81		0.60		0.84			1.44			(0.56	)		(0.56	)		26.69
2015		26.28		0.58		(0.50	)		0.08			(0.55	)		(0.55	)		25.81
2014		23.15		0.59		3.04			3.63			(0.50	)		(0.50	)		26.28
2013		19.47		0.59		3.65			4.24			(0.56	)		(0.56	)		23.15
2012		17.58		0.51		1.89			2.40			(0.51	)		(0.51	)		19.47


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


5.96	%	$	3,973,961	0.52	%	2.53	%	16.4	%
0.55			3,921,558	0.52		2.44		15.8
16.08			4,325,786	0.52		2.63		14.5
22.39			3,791,024	0.52		2.99		16.4
14.10			3,105,517	0.52		3.09		23.5

5.02			1,987	1.39		1.71		16.4
(0.29	)		3,194	1.39		1.57		15.8
15.06			3,135	1.39		1.81		14.5
21.36			3,661	1.39		2.11		16.4
13.09			2,790	1.39		2.24		23.5

5.17			5,036	1.26		1.81		16.4
(0.21	)		5,605	1.26		1.71		15.8
15.25			7,068	1.26		1.90		14.5
21.48			8,608	1.26		2.27		16.4
13.29			7,317	1.26		2.29		23.5

5.35			58,084	1.08		1.99		16.4
0.01			68,044	1.08		1.89		15.8
15.47			80,594	1.08		2.06		14.5
21.72			72,261	1.08		2.39		16.4
13.45			44,323	1.08		2.47		23.5

5.54			46,986	0.89		2.18		16.4
0.18			56,958	0.89		2.07		15.8
15.64			54,861	0.89		2.26		14.5
21.94			50,967	0.89		2.59		16.4
13.70			31,695	0.89		2.61		23.5

5.66			99,310	0.77		2.33		16.4
0.30			165,486	0.77		2.19		15.8
15.81			168,487	0.77		2.37		14.5
22.11			142,322	0.77		2.73		16.4
13.81			106,715	0.77		2.71		23.5

(a) Calculated based on average shares outstanding during the period.


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):




			Net Asset		Net		Net Realized						Dividends		Distributions			Total
			Value,		Investment		and Unrealized			Total From			from Net		from			Dividends			Net Asset
			Beginning		Income		Gain (Loss) on			Investment			Investment		Realized			and			Value, End
			of Period		(Loss)(a)		Investments			Operations			Income		Gains			Distributions			of Period
FINISTERRE UNCONSTRAINED EMERGING MARKETS BOND FUND
Institutional shares
2016	(b)	$	10.00	$	0.14	$	0.13		$	0.27		($	0.12	)	$–		($	0.12	)	$	10.15
GLOBAL DIVERSIFIED INCOME FUND
Institutional shares
2016			13.54		0.74		0.14			0.88			(0.76	)	–			(0.76	)		13.66
2015			14.71		0.70		(0.87	)		(0.17	)		(0.65	)	(0.35	)		(1.00	)		13.54
2014			14.19		0.67		0.51			1.18			(0.66	)	–			(0.66	)		14.71
2013			14.10		0.71		0.21			0.92			(0.71	)	(0.12	)		(0.83	)		14.19
2012			12.94		0.81		1.15			1.96			(0.76	)	(0.04	)		(0.80	)		14.10
GLOBAL REAL ESTATE SECURITIES FUND
Institutional shares
2016			9.32		0.15		(0.16	)		(0.01	)		(0.23	)	(0.16	)		(0.39	)		8.92
2015			9.26		0.14		0.23			0.37			(0.26	)	(0.05	)		(0.31	)		9.32
2014			8.79		0.14		0.80			0.94			(0.19	)	(0.28	)		(0.47	)		9.26
2013			8.25		0.16		0.99			1.15			(0.46	)	(0.15	)		(0.61	)		8.79
2012			7.07		0.15		1.21			1.36			(0.18	)	–			(0.18	)		8.25
R-3 shares
2016	(g)		8.61		0.06		0.32			0.38			(0.07	)	–			(0.07	)		8.92
R-4 shares
2016	(g)		8.61		0.07		0.32			0.39			(0.08	)	–			(0.08	)		8.92
R-5 shares
2016	(g)		8.61		0.08		0.32			0.40			(0.08	)	–			(0.08	)		8.93
R-6 shares
2016			9.32		0.14		(0.15	)		(0.01	)		(0.23	)	(0.16	)		(0.39	)		8.92
2015	(h)		9.28		0.12		0.23			0.35			(0.26	)	(0.05	)		(0.31	)		9.32


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
GOVERNMENT & HIGH QUALITY BOND FUND
Class J shares
2016	$	10.95	$	0.31	($	0.02	)	$	0.29		($	0.38	)	($	0.38	)	$	10.86
2015		11.05		0.24		(0.05	)		0.19			(0.29	)		(0.29	)		10.95
2014		10.99		0.23		0.13			0.36			(0.30	)		(0.30	)		11.05
2013		11.38		0.23		(0.31	)		(0.08	)		(0.31	)		(0.31	)		10.99
2012		11.28		0.29		0.19			0.48			(0.38	)		(0.38	)		11.38
Institutional shares
2016		10.94		0.34		(0.01	)		0.33			(0.42	)		(0.42	)		10.85
2015		11.04		0.28		(0.05	)		0.23			(0.33	)		(0.33	)		10.94
2014		10.98		0.27		0.14			0.41			(0.35	)		(0.35	)		11.04
2013		11.37		0.27		(0.31	)		(0.04	)		(0.35	)		(0.35	)		10.98
2012		11.27		0.34		0.19			0.53			(0.43	)		(0.43	)		11.37
R-1 shares
2016		10.94		0.26		(0.01	)		0.25			(0.33	)		(0.33	)		10.86
2015		11.04		0.19		(0.05	)		0.14			(0.24	)		(0.24	)		10.94
2014		10.99		0.19		0.12			0.31			(0.26	)		(0.26	)		11.04
2013		11.38		0.19		(0.31	)		(0.12	)		(0.27	)		(0.27	)		10.99
2012		11.27		0.26		0.19			0.45			(0.34	)		(0.34	)		11.38
R-2 shares
2016		10.94		0.28		(0.01	)		0.27			(0.35	)		(0.35	)		10.86
2015		11.04		0.21		(0.05	)		0.16			(0.26	)		(0.26	)		10.94
2014		10.99		0.20		0.12			0.32			(0.27	)		(0.27	)		11.04
2013		11.38		0.20		(0.31	)		(0.11	)		(0.28	)		(0.28	)		10.99
2012		11.27		0.27		0.20			0.47			(0.36	)		(0.36	)		11.38
R-3 shares
2016		10.94		0.30		(0.01	)		0.29			(0.37	)		(0.37	)		10.86
2015		11.04		0.23		(0.05	)		0.18			(0.28	)		(0.28	)		10.94
2014		10.99		0.22		0.12			0.34			(0.29	)		(0.29	)		11.04
2013		11.38		0.22		(0.31	)		(0.09	)		(0.30	)		(0.30	)		10.99
2012		11.27		0.29		0.20			0.49			(0.38	)		(0.38	)		11.38
R-4 shares
2016		10.95		0.32		(0.02	)		0.30			(0.39	)		(0.39	)		10.86
2015		11.04		0.25		(0.04	)		0.21			(0.30	)		(0.30	)		10.95
2014		10.99		0.24		0.13			0.37			(0.32	)		(0.32	)		11.04
2013		11.38		0.24		(0.31	)		(0.07	)		(0.32	)		(0.32	)		10.99
2012		11.27		0.31		0.20			0.51			(0.40	)		(0.40	)		11.38
R-5 shares
2016		10.95		0.33		(0.02	)		0.31			(0.40	)		(0.40	)		10.86
2015		11.05		0.26		(0.05	)		0.21			(0.31	)		(0.31	)		10.95
2014		11.00		0.26		0.12			0.38			(0.33	)		(0.33	)		11.05
2013		11.39		0.26		(0.32	)		(0.06	)		(0.33	)		(0.33	)		11.00
2012		11.28		0.32		0.20			0.52			(0.41	)		(0.41	)		11.39


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.72%	(c)	$	139,808	0.83	%	0.86	%	2.88	%	31.4	%
1.75	(c)		133,414	0.85		0.90		2.19		31.0
3.37	(c)		135,736	0.89		0.93		2.12		32.8
(0.75	) (c)		144,809	0.94		1.14		2.02		41.1
4.28	(c)		156,522	1.00		1.23		2.53		52.8

3.03			922,143	0.53		–		3.16		31.4
2.08			1,001,014	0.52		–		2.51		31.0
3.77			1,086,207	0.51		–		2.50		32.8
(0.33	)		1,098,217	0.51		–		2.45		41.1
4.80			1,044,466	0.51		–		3.04		52.8

2.25	(d)		2,866	1.29	(e)	–		2.41		31.4
1.40	(d)		2,703	1.29	(e)	–		1.75		31.0
2.86			2,480	1.29	(e)	–		1.72		32.8
(1.10	)		3,151	1.29	(e)	–		1.67		41.1
4.07			3,722	1.29	(e)	–		2.25		52.8

2.48			14,622	1.16	(e)	–		2.59		31.4
1.44			7,499	1.16	(e)	–		1.87		31.0
3.00			4,914	1.16	(e)	–		1.85		32.8
(0.97	)		5,207	1.16	(e)	–		1.80		41.1
4.21			6,464	1.16	(e)	–		2.39		52.8

2.66			14,995	0.98	(e)	–		2.71		31.4
1.62			17,243	0.98	(e)	–		2.05		31.0
3.18			16,350	0.98	(e)	–		2.03		32.8
(0.80	)		17,952	0.98	(e)	–		1.98		41.1
4.40			21,930	0.98	(e)	–		2.56		52.8

2.76			14,676	0.79	(e)	–		2.94		31.4
1.90			10,391	0.79	(e)	–		2.25		31.0
3.38			10,900	0.79	(e)	–		2.22		32.8
(0.61	)		10,708	0.79	(e)	–		2.17		41.1
4.59			11,093	0.79	(e)	–		2.75		52.8

2.88			24,759	0.67	(e)	–		3.03		31.4
1.93			22,979	0.67	(e)	–		2.36		31.0
3.50			20,405	0.67	(e)	–		2.34		32.8
(0.49	)		19,242	0.67	(e)	–		2.29		41.1
4.72			21,996	0.67	(e)	–		2.87		52.8


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized						Dividends		Distributions			Total
		Value,		Investment		and Unrealized			Total From			from Net		from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment		Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income		Gains			Distributions			of Period
HIGH YIELD FUND
Institutional shares
2016	$	7.12	$	0.42	$	0.10		$	0.52		($	0.45	)	$–		($	0.45	)	$	7.19
2015		7.67		0.42		(0.46	)		(0.04	)		(0.43	)	(0.08	)		(0.51	)		7.12
2014		7.90		0.46		(0.04	)		0.42			(0.49	)	(0.16	)		(0.65	)		7.67
2013		7.80		0.51		0.20			0.71			(0.54	)	(0.07	)		(0.61	)		7.90
2012		7.69		0.55		0.39			0.94			(0.57	)	(0.26	)		(0.83	)		7.80
HIGH YIELD FUND I
Institutional shares
2016		9.65		0.54		0.17			0.71			(0.55	)	–			(0.55	)		9.81
2015		10.49		0.55		(0.76	)		(0.21	)		(0.55	)	(0.08	)		(0.63	)		9.65
2014		10.76		0.58		(0.06	)		0.52			(0.58	)	(0.21	)		(0.79	)		10.49
2013		11.37		0.65		0.27			0.92			(1.22	)	(0.31	)		(1.53	)		10.76
2012		11.05		0.73		0.54			1.27			(0.73	)	(0.22	)		(0.95	)		11.37

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net		Net Realized						Dividends			Total
			Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
			Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
			of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
INCOME FUND
Class J shares
2016		$	9.50	$	0.28	$	0.21		$	0.49		($	0.33	)	($	0.33	)	$	9.66
2015			9.78		0.27		(0.26	)		0.01			(0.29	)		(0.29	)		9.50
2014			9.67		0.31		0.14			0.45			(0.34	)		(0.34	)		9.78
2013			10.00		0.33		(0.30	)		0.03			(0.36	)		(0.36	)		9.67
2012			9.57		0.39		0.45			0.84			(0.41	)		(0.41	)		10.00
Institutional shares
2016			9.51		0.30		0.20			0.50			(0.35	)		(0.35	)		9.66
2015			9.78		0.31		(0.26	)		0.05			(0.32	)		(0.32	)		9.51
2014			9.67		0.35		0.14			0.49			(0.38	)		(0.38	)		9.78
2013			10.00		0.37		(0.30	)		0.07			(0.40	)		(0.40	)		9.67
2012			9.57		0.44		0.46			0.90			(0.47	)		(0.47	)		10.00
R-1 shares
2016			9.51		0.22		0.21			0.43			(0.27	)		(0.27	)		9.67
2015			9.79		0.22		(0.26	)		(0.04	)		(0.24	)		(0.24	)		9.51
2014			9.68		0.26		0.14			0.40			(0.29	)		(0.29	)		9.79
2013			10.00		0.29		(0.29	)		–			(0.32	)		(0.32	)		9.68
2012			9.57		0.36		0.45			0.81			(0.38	)		(0.38	)		10.00
R-2 shares
2016			9.52		0.23		0.21			0.44			(0.28	)		(0.28	)		9.68
2015			9.79		0.24		(0.26	)		(0.02	)		(0.25	)		(0.25	)		9.52
2014			9.68		0.28		0.14			0.42			(0.31	)		(0.31	)		9.79
2013			10.01		0.30		(0.30	)		–			(0.33	)		(0.33	)		9.68
2012			9.58		0.37		0.46			0.83			(0.40	)		(0.40	)		10.01
R-3 shares
2016			9.52		0.25		0.21			0.46			(0.30	)		(0.30	)		9.68
2015			9.80		0.25		(0.26	)		(0.01	)		(0.27	)		(0.27	)		9.52
2014			9.69		0.30		0.13			0.43			(0.32	)		(0.32	)		9.80
2013			10.01		0.32		(0.29	)		0.03			(0.35	)		(0.35	)		9.69
2012			9.58		0.39		0.45			0.84			(0.41	)		(0.41	)		10.01
R-4 shares
2016			9.52		0.27		0.20			0.47			(0.32	)		(0.32	)		9.67
2015			9.79		0.27		(0.25	)		0.02			(0.29	)		(0.29	)		9.52
2014			9.68		0.32		0.13			0.45			(0.34	)		(0.34	)		9.79
2013			10.01		0.34		(0.30	)		0.04			(0.37	)		(0.37	)		9.68
2012			9.58		0.41		0.45			0.86			(0.43	)		(0.43	)		10.01
R-5 shares
2016			9.50		0.28		0.21			0.49			(0.33	)		(0.33	)		9.66
2015			9.78		0.28		(0.26	)		0.02			(0.30	)		(0.30	)		9.50
2014			9.67		0.33		0.13			0.46			(0.35	)		(0.35	)		9.78
2013			10.00		0.35		(0.30	)		0.05			(0.38	)		(0.38	)		9.67
2012			9.57		0.42		0.45			0.87			(0.44	)		(0.44	)		10.00
R-6 shares
2016			9.50		0.30		0.21			0.51			(0.35	)		(0.35	)		9.66
2015	(f)		9.78		0.27		(0.25	)		0.02			(0.30	)		(0.30	)		9.50


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.


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


5.22%	(c)	$	100,416	0.78	%	0.81	%	2.91	%	12.9	%
0.08	(c)		92,169	0.85		0.88		2.83		11.5
4.73	(c)		93,304	0.89		0.93		3.23		11.3
0.29	(c)		88,170	0.96		1.16		3.36		20.7
9.03	(c)		90,263	1.06		1.25		4.02		14.1

5.40			2,692,447	0.49		–		3.19		12.9
0.54			2,576,219	0.49		–		3.19		11.5
5.13			2,288,675	0.50		–		3.61		11.3
0.74			1,907,327	0.50		–		3.82		20.7
9.62			1,763,464	0.51		–		4.56		14.1

4.60			19,256	1.36		–		2.32		12.9
(0.42	)		15,740	1.36		–		2.31		11.5
4.22			10,308	1.37		–		2.71		11.3
(0.02	)		5,593	1.37		–		2.94		20.7
8.68			1,084	1.38		–		3.69		14.1

4.73			3,155	1.23		–		2.45		12.9
(0.19	)		2,867	1.23		–		2.44		11.5
4.35			2,267	1.24		–		2.85		11.3
0.00			1,208	1.24		–		3.07		20.7
8.81			1,157	1.25		–		3.77		14.1

4.92			32,657	1.05		–		2.63		12.9
(0.12	)		33,494	1.05		–		2.62		11.5
4.54			24,899	1.06		–		3.05		11.3
0.28			21,640	1.06		–		3.25		20.7
9.00			16,508	1.07		–		4.01		14.1

5.01			27,577	0.86		–		2.82		12.9
0.17			23,620	0.86		–		2.82		11.5
4.74			21,679	0.87		–		3.23		11.3
0.37			15,785	0.87		–		3.45		20.7
9.21			8,155	0.88		–		4.17		14.1

5.25			50,807	0.74		–		2.94		12.9
0.19			46,970	0.74		–		2.93		11.5
4.87			33,814	0.75		–		3.36		11.3
0.50			15,858	0.75		–		3.56		20.7
9.35			13,785	0.76		–		4.31		14.1

5.37	(d)		6,656	0.55	(e)	–		3.13		12.9
0.27 (d)	,(g)		6,539	0.55 (e)	,(h)	–		3.05	(h)	11.5	(h)


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized						Dividends		Distributions			Total
		Value,		Investment			and Unrealized			Total From			from Net		from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on			Investment			Investment		Realized			and			Value, End
		of Period		(Loss)(a)			Investments			Operations			Income		Gains			Distributions			of Period
INFLATION PROTECTION FUND
Class J shares
2016	$	8.11	$	0.01		$	0.35		$	0.36		($	0.05	)	$–		($	0.05	)	$	8.42
2015		8.46		(0.05	)		(0.20	)		(0.25	)		(0.10	)	–			(0.10	)		8.11
2014		8.55		0.03			0.04			0.07			–		(0.16	)		(0.16	)		8.46
2013		9.15		0.02			(0.61	)		(0.59	)		(0.01	)	–			(0.01	)		8.55
2012		8.56		0.02			0.58			0.60			(0.01	)	–			(0.01	)		9.15
Institutional shares
2016		8.35		0.07			0.37			0.44			(0.07	)	–			(0.07	)		8.72
2015		8.66		0.03			(0.22	)		(0.19	)		(0.12	)	–			(0.12	)		8.35
2014		8.69		0.11			0.02			0.13			–		(0.16	)		(0.16	)		8.66
2013		9.29		0.07			(0.62	)		(0.55	)		(0.05	)	–			(0.05	)		8.69
2012		8.65		0.09			0.58			0.67			(0.03	)	–			(0.03	)		9.29
R-1 shares
2016		8.00		0.01			0.33			0.34			(0.05	)	–			(0.05	)		8.29
2015		8.35		(0.07	)		(0.19	)		(0.26	)		(0.09	)	–			(0.09	)		8.00
2014		8.46		0.02			0.03			0.05			–		(0.16	)		(0.16	)		8.35
2013		9.09		(0.02	)		(0.60	)		(0.62	)		(0.01	)	–			(0.01	)		8.46
2012		8.51		0.02			0.57			0.59			(0.01	)	–			(0.01	)		9.09
R-2 shares
2016		8.04		0.01			0.35			0.36			(0.05	)	–			(0.05	)		8.35
2015		8.39		(0.06	)		(0.19	)		(0.25	)		(0.10	)	–			(0.10	)		8.04
2014		8.49		0.03			0.03			0.06			–		(0.16	)		(0.16	)		8.39
2013		9.11		–			(0.61	)		(0.61	)		(0.01	)	–			(0.01	)		8.49
2012		8.52		0.03			0.57			0.60			(0.01	)	–			(0.01	)		9.11
R-3 shares
2016		8.12		0.02			0.36			0.38			(0.06	)	–			(0.06	)		8.44
2015		8.46		(0.05	)		(0.19	)		(0.24	)		(0.10	)	–			(0.10	)		8.12
2014		8.54		0.04			0.04			0.08			–		(0.16	)		(0.16	)		8.46
2013		9.16		0.02			(0.62	)		(0.60	)		(0.02	)	–			(0.02	)		8.54
2012		8.55		0.04			0.58			0.62			(0.01	)	–			(0.01	)		9.16
R-4 shares
2016		8.19		0.04			0.35			0.39			(0.06	)	–			(0.06	)		8.52
2015		8.52		(0.02	)		(0.20	)		(0.22	)		(0.11	)	–			(0.11	)		8.19
2014		8.58		0.07			0.03			0.10			–		(0.16	)		(0.16	)		8.52
2013		9.20		0.04			(0.63	)		(0.59	)		(0.03	)	–			(0.03	)		8.58
2012		8.58		0.08			0.55			0.63			(0.01	)	–			(0.01	)		9.20
R-5 shares
2016		8.25		0.05			0.35			0.40			(0.06	)	–			(0.06	)		8.59
2015		8.57		–			(0.21	)		(0.21	)		(0.11	)	–			(0.11	)		8.25
2014		8.62		0.16			(0.05	)		0.11			–		(0.16	)		(0.16	)		8.57
2013		9.24		0.06			(0.65	)		(0.59	)		(0.03	)	–			(0.03	)		8.62
2012		8.61		0.07			0.58			0.65			(0.02	)	–			(0.02	)		9.24


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


4.51%	(c)	$	7,758	1.09	%	1.12	%	0.17	%	62.0	%
(2.96	) (c)		7,516	1.10		1.13		(0.63	)	54.5
0.85	(c)		8,692	1.11		1.15		0.40		101.6
(6.45	) (c)		9,894	0.86		1.06		0.25		100.9
7.00	(c)		15,135	1.15		1.52		0.25		152.9

5.30			1,770,164	0.38		–		0.88		62.0
(2.26	)		1,608,193	0.39		–		0.41		54.5
1.54			1,023,698	0.40		–		1.29		101.6
(6.00	)		773,261	0.40		–		0.79		100.9
7.78			740,023	0.40		–		1.04		152.9

4.31			1,017	1.26		–		0.12		62.0
(3.09	)		693	1.27		–		(0.80	)	54.5
0.62			905	1.28		–		0.28		101.6
(6.83	)		910	1.28		–		(0.21	)	100.9
6.89			1,821	1.28		–		0.19		152.9

4.44	(d)		524	1.13		–		0.07		62.0
(2.86	) (d)		533	1.14		–		(0.74	)	54.5
0.73			577	1.15		–		0.34		101.6
(6.73	)		752	1.15		–		0.01		100.9
7.01			1,263	1.15		–		0.35		152.9

4.69			5,602	0.95		–		0.29		62.0
(2.80	)		4,825	0.96		–		(0.54	)	54.5
0.97			5,784	0.97		–		0.50		101.6
(6.54	)		6,353	0.97		–		0.22		100.9
7.24			5,447	0.97		–		0.47		152.9

4.82			2,357	0.76		–		0.45		62.0
(2.62	)		1,982	0.77		–		(0.21	)	54.5
1.20			2,036	0.78		–		0.83		101.6
(6.42	)		1,655	0.78		–		0.47		100.9
7.38			1,995	0.78		–		0.88		152.9

4.93			3,833	0.64		–		0.65		62.0
(2.45	)		4,259	0.65		–		(0.04	)	54.5
1.31			3,790	0.66		–		1.82		101.6
(6.37	)		2,516	0.66		–		0.71		100.9
7.55			4,539	0.66		–		0.81		152.9


		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
INTERNATIONAL EMERGING MARKETS FUND
Class J shares
2016	$	20.61	$	0.13	$	1.28		$	1.41		($	0.09	)	($	0.09	)	$	21.93
2015		24.14		0.19		(3.41	)		(3.22	)		(0.31	)		(0.31	)		20.61
2014		24.25		0.20		(0.22	)		(0.02	)		(0.09	)		(0.09	)		24.14
2013		23.69		0.21		0.62			0.83			(0.27	)		(0.27	)		24.25
2012		22.96		0.22		0.72			0.94			(0.21	)		(0.21	)		23.69
Institutional shares
2016		21.24		0.20		1.33			1.53			(0.18	)		(0.18	)		22.59
2015		24.88		0.26		(3.49	)		(3.23	)		(0.41	)		(0.41	)		21.24
2014		25.01		0.32		(0.24	)		0.08			(0.21	)		(0.21	)		24.88
2013		24.42		0.33		0.64			0.97			(0.38	)		(0.38	)		25.01
2012		23.67		0.34		0.73			1.07			(0.32	)		(0.32	)		24.42
R-1 shares
2016		21.08		0.03		1.31			1.34			–			–			22.42
2015		24.66		0.10		(3.51	)		(3.41	)		(0.17	)		(0.17	)		21.08
2014		24.79		0.09		(0.22	)		(0.13	)		–			–			24.66
2013		24.20		0.11		0.64			0.75			(0.16	)		(0.16	)		24.79
2012		23.37		0.13		0.75			0.88			(0.05	)		(0.05	)		24.20
R-2 shares
2016		20.95		0.06		1.30			1.36			–			–			22.31
2015		24.52		0.11		(3.47	)		(3.36	)		(0.21	)		(0.21	)		20.95
2014		24.63		0.12		(0.22	)		(0.10	)		(0.01	)		(0.01	)		24.52
2013		24.03		0.13		0.65			0.78			(0.18	)		(0.18	)		24.63
2012		23.26		0.16		0.74			0.90			(0.13	)		(0.13	)		24.03
R-3 shares
2016		21.10		0.10		1.31			1.41			(0.05	)		(0.05	)		22.46
2015		24.68		0.16		(3.49	)		(3.33	)		(0.25	)		(0.25	)		21.10
2014		24.74		0.17		(0.23	)		(0.06	)		–			–			24.68
2013		24.15		0.19		0.64			0.83			(0.24	)		(0.24	)		24.74
2012		23.38		0.22		0.72			0.94			(0.17	)		(0.17	)		24.15
R-4 shares
2016		21.20		0.13		1.33			1.46			(0.08	)		(0.08	)		22.58
2015		24.82		0.21		(3.52	)		(3.31	)		(0.31	)		(0.31	)		21.20
2014		24.93		0.20		(0.21	)		(0.01	)		(0.10	)		(0.10	)		24.82
2013		24.35		0.24		0.64			0.88			(0.30	)		(0.30	)		24.93
2012		23.59		0.25		0.74			0.99			(0.23	)		(0.23	)		24.35
R-5 shares
2016		21.26		0.15		1.32			1.47			(0.12	)		(0.12	)		22.61
2015		24.89		0.24		(3.53	)		(3.29	)		(0.34	)		(0.34	)		21.26
2014		25.02		0.24		(0.22	)		0.02			(0.15	)		(0.15	)		24.89
2013		24.43		0.27		0.65			0.92			(0.33	)		(0.33	)		25.02
2012		23.67		0.29		0.72			1.01			(0.25	)		(0.25	)		24.43


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


6.87%	(c)	$	97,753	1.64	%	1.67	%	0.65	%	120.3	%
(13.47	) (c)		99,723	1.66		1.69		0.86		88.4
(0.09	) (c)		129,223	1.65		1.69		0.83		114.7
3.49	(c)		146,376	1.69		1.89		0.85		117.2
4.18	(c)		164,299	1.72		1.91		0.96		104.8

7.27	(d)		756,257	1.27		–		0.97		120.3
(13.13	)		948,114	1.25		–		1.10		88.4
0.33			1,752,175	1.23		–		1.30		114.7
3.96			1,537,280	1.24		1.24		1.35		117.2
4.67			1,219,393	1.25		1.25		1.45		104.8

6.36			2,585	2.13		–		0.14		120.3
(13.88	)		2,842	2.12		–		0.42		88.4
(0.52	)		3,490	2.10		–		0.38		114.7
3.09			4,467	2.11		–		0.43		117.2
3.77			5,362	2.11		–		0.56		104.8

6.49			3,346	2.00		–		0.30		120.3
(13.76	)		3,777	1.99		–		0.46		88.4
(0.41	)		5,878	1.97		–		0.50		114.7
3.21			6,610	1.98		–		0.53		117.2
3.93			9,010	1.98		–		0.69		104.8

6.70			10,275	1.82		–		0.48		120.3
(13.60	)		10,805	1.81		–		0.71		88.4
(0.24	)		14,835	1.79		–		0.68		114.7
3.42			19,344	1.80		–		0.77		117.2
4.08			37,931	1.80		–		0.94		104.8

6.86	(d)		8,340	1.63		–		0.66		120.3
(13.42	) (d)		8,922	1.62		–		0.90		88.4
(0.01	)		14,415	1.60		–		0.84		114.7
3.57			20,951	1.61		–		0.98		117.2
4.28			21,453	1.61		–		1.05		104.8

6.99			18,989	1.51		–		0.73		120.3
(13.33	)		22,656	1.50		–		1.01		88.4
0.08			29,903	1.48		–		0.97		114.7
3.73			33,812	1.49		–		1.08		117.2
4.41			37,421	1.49		–		1.21		104.8


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
INTERNATIONAL FUND I
Institutional shares
2016	$	13.53	$	0.13	($	0.45	)	($	0.32	)	($	0.10	)	($	0.10	)	$	13.11
2015		13.65		0.16		0.03			0.19			(0.31	)		(0.31	)		13.53
2014		13.05		0.23		0.58			0.81			(0.21	)		(0.21	)		13.65
2013		10.79		0.15		2.32			2.47			(0.21	)		(0.21	)		13.05
2012		10.31		0.20		0.45			0.65			(0.17	)		(0.17	)		10.79
R-1 shares
2016		13.42		0.02		(0.45	)		(0.43	)		–			–			12.99
2015		13.54		0.04		0.03			0.07			(0.19	)		(0.19	)		13.42
2014		12.94		0.16		0.54			0.70			(0.10	)		(0.10	)		13.54
2013		10.70		0.06		2.29			2.35			(0.11	)		(0.11	)		12.94
2012		10.20		0.11		0.46			0.57			(0.07	)		(0.07	)		10.70
R-2 shares
2016		13.48		0.04		(0.46	)		(0.42	)		–			–			13.06
2015		13.57		0.06		0.04			0.10			(0.19	)		(0.19	)		13.48
2014		12.96		0.18		0.54			0.72			(0.11	)		(0.11	)		13.57
2013		10.72		0.07		2.30			2.37			(0.13	)		(0.13	)		12.96
2012		10.21		0.12		0.46			0.58			(0.07	)		(0.07	)		10.72
R-3 shares
2016		13.47		0.06		(0.45	)		(0.39	)		(0.03	)		(0.03	)		13.05
2015		13.57		0.08		0.04			0.12			(0.22	)		(0.22	)		13.47
2014		12.97		0.20		0.54			0.74			(0.14	)		(0.14	)		13.57
2013		10.71		0.10		2.29			2.39			(0.13	)		(0.13	)		12.97
2012		10.22		0.14		0.46			0.60			(0.11	)		(0.11	)		10.71
R-4 shares
2016		13.49		0.09		(0.46	)		(0.37	)		(0.05	)		(0.05	)		13.07
2015		13.60		0.10		0.06			0.16			(0.27	)		(0.27	)		13.49
2014		13.00		0.22		0.55			0.77			(0.17	)		(0.17	)		13.60
2013		10.74		0.12		2.30			2.42			(0.16	)		(0.16	)		13.00
2012		10.26		0.16		0.45			0.61			(0.13	)		(0.13	)		10.74
R-5 shares
2016		13.49		0.08		(0.44	)		(0.36	)		(0.07	)		(0.07	)		13.06
2015		13.61		0.12		0.05			0.17			(0.29	)		(0.29	)		13.49
2014		13.02		0.24		0.54			0.78			(0.19	)		(0.19	)		13.61
2013		10.76		0.14		2.31			2.45			(0.19	)		(0.19	)		13.02
2012		10.28		0.17		0.45			0.62			(0.14	)		(0.14	)		10.76


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(2.36	)%	$	296,966	1.00	%	1.01	%	1.02	%	69.9	%
1.32	(c)		316,421	0.97		0.97		1.14		52.8
6.45	(c)		344,528	1.01		1.04		1.76		128.4
23.23			610,764	0.97		1.02		1.27		50.6
6.53			1,069,269	0.98		1.01		1.95		57.3

(3.20	)		2,759	1.85		–		0.16		69.9
0.48	(c)		3,710	1.81		–		0.30		52.8
5.53	(c)		4,271	1.85	(d)	–		1.22		128.4
22.17			4,758	1.83	(d)	–		0.54		50.6
5.61			4,294	1.85	(d)	–		1.04		57.3

(3.12	)		2,577	1.72		–		0.30		69.9
0.71	(c)		3,189	1.68		–		0.44		52.8
5.66	(c)		3,069	1.72	(d)	–		1.34		128.4
22.25			4,108	1.70	(d)	–		0.63		50.6
5.79			4,182	1.72	(d)	–		1.22		57.3

(2.90	)		5,326	1.54		–		0.49		69.9
0.86	(c)		4,721	1.50		–		0.59		52.8
5.83	(c)		5,340	1.54	(d)	–		1.51		128.4
22.51			6,505	1.52	(d)	–		0.88		50.6
5.97			7,223	1.54	(d)	–		1.42		57.3

(2.75	)		3,386	1.35		–		0.68		69.9
1.11	(c)		3,651	1.31		–		0.71		52.8
6.01	(c)		5,718	1.35	(d)	–		1.67		128.4
22.82			8,174	1.33	(d)	–		1.04		50.6
6.07			6,264	1.35	(d)	–		1.56		57.3

(2.69	)		3,710	1.23		–		0.61		69.9
1.12	(c)		9,244	1.19		–		0.89		52.8
6.18	(c)		8,839	1.23	(d)	–		1.83		128.4
23.02			8,295	1.21	(d)	–		1.15		50.6
6.17			6,265	1.23	(d)	–		1.69		57.3


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized					Dividends			Distributions			Total
		Value,		Investment			and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments			Operations		Income			Gains			Distributions			of Period
LARGECAP GROWTH FUND
Class J shares
2016	$	10.37	$	0.01		($	0.38	)	($	0.37	)	$–		($	1.08	)	($	1.08	)	$	8.92
2015		11.00		(0.02	)		0.61			0.59		–			(1.22	)		(1.22	)		10.37
2014		10.77		(0.02	)		1.46			1.44		–			(1.21	)		(1.21	)		11.00
2013		8.31		0.02			2.46			2.48		(0.02	)		–			(0.02	)		10.77
2012		7.53		–			0.78			0.78		–			–			–			8.31
Institutional shares
2016		11.38		0.05			(0.43	)		(0.38	)	(0.03	)		(1.08	)		(1.11	)		9.89
2015		11.93		0.03			0.66			0.69		(0.02	)		(1.22	)		(1.24	)		11.38
2014		11.57		0.03			1.57			1.60		(0.03	)		(1.21	)		(1.24	)		11.93
2013		8.93		0.07			2.64			2.71		(0.07	)		–			(0.07	)		11.57
2012		8.07		0.04			0.85			0.89		(0.03	)		–			(0.03	)		8.93
R-1 shares
2016		10.52		(0.04	)		(0.38	)		(0.42	)	–			(1.08	)		(1.08	)		9.02
2015		11.19		(0.06	)		0.61			0.55		–			(1.22	)		(1.22	)		10.52
2014		10.98		(0.06	)		1.48			1.42		–			(1.21	)		(1.21	)		11.19
2013		8.49		(0.01	)		2.50			2.49		–			–			–			10.98
2012		7.72		(0.03	)		0.80			0.77		–			–			–			8.49
R-2 shares
2016		10.69		(0.02	)		(0.40	)		(0.42	)	–			(1.08	)		(1.08	)		9.19
2015		11.34		(0.05	)		0.62			0.57		–			(1.22	)		(1.22	)		10.69
2014		11.09		(0.05	)		1.51			1.46		–			(1.21	)		(1.21	)		11.34
2013		8.57		–			2.52			2.52		–			–			–			11.09
2012		7.77		(0.02	)		0.82			0.80		–			–			–			8.57
R-3 shares
2016		11.61		(0.01	)		(0.43	)		(0.44	)	–			(1.08	)		(1.08	)		10.09
2015		12.19		(0.03	)		0.67			0.64		–			(1.22	)		(1.22	)		11.61
2014		11.82		(0.03	)		1.61			1.58		–			(1.21	)		(1.21	)		12.19
2013		9.12		0.02			2.68			2.70		–			–			–			11.82
2012		8.26		–			0.86			0.86		–			–			–			9.12
R-4 shares
2016		11.56		0.01			(0.43	)		(0.42	)	–			(1.08	)		(1.08	)		10.06
2015		12.12		(0.01	)		0.67			0.66		–			(1.22	)		(1.22	)		11.56
2014		11.74		(0.01	)		1.60			1.59		–			(1.21	)		(1.21	)		12.12
2013		9.06		0.03			2.68			2.71		(0.03	)		–			(0.03	)		11.74
2012		8.19		0.01			0.86			0.87		–			–			–			9.06
R-5 shares
2016		11.45		0.02			(0.43	)		(0.41	)	–			(1.08	)		(1.08	)		9.96
2015		12.00		–			0.67			0.67		–			(1.22	)		(1.22	)		11.45
2014		11.62		–			1.59			1.59		–			(1.21	)		(1.21	)		12.00
2013		8.98		0.06			2.62			2.68		(0.04	)		–			(0.04	)		11.62
2012		8.11		0.02			0.85			0.87		–			–			–			8.98


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(4.01)%	(c)	$	57,924	0.95	%	0.98	%	0.15	%	62.5	%
6.10	(c)		69,824	1.03		1.06		(0.15	)	54.1
14.61	(c)		64,841	1.04		1.08		(0.16	)	57.7
29.92	(c)		56,800	1.09		1.29		0.25		79.3
10.36	(c)		45,831	1.20		1.39		(0.04	)	64.3

(3.75	)		1,549,259	0.65		–		0.46		62.5
6.48			2,352,018	0.64		–		0.25		54.1
15.09			2,791,488	0.65		–		0.24		57.7
30.52			2,513,518	0.64		–		0.69		79.3
11.01			1,852,751	0.64		–		0.51		64.3

(4.47	)		4,378	1.52		–		(0.42	)	62.5
5.58			5,815	1.50		–		(0.62	)	54.1
14.10			6,258	1.50		–		(0.60	)	57.7
29.33			6,534	1.51		–		(0.10	)	79.3
9.97			8,500	1.52		–		(0.37	)	64.3

(4.40	)		2,093	1.39		–		(0.24	)	62.5
5.70			5,386	1.37		–		(0.50	)	54.1
14.34			5,846	1.37		–		(0.47	)	57.7
29.40			7,383	1.38		–		0.01		79.3
10.30			8,616	1.39		–		(0.23	)	64.3

(4.21	)		14,755	1.21		–		(0.12	)	62.5
5.89			19,280	1.19		–		(0.30	)	54.1
14.48			20,863	1.19		–		(0.29	)	57.7
29.67			22,527	1.20		–		0.19		79.3
10.41			25,611	1.21		–		(0.05	)	64.3

(4.04	)		10,224	1.02		–		0.08		62.5
6.11			14,853	1.00		–		(0.12	)	54.1
14.68			13,833	1.00		–		(0.08	)	57.7
29.94			18,484	1.01		–		0.32		79.3
10.62			13,612	1.02		–		0.14		64.3

(3.98	)		50,611	0.90		–		0.20		62.5
6.27			64,417	0.88		–		0.01		54.1
14.85			71,922	0.88		–		0.01		57.7
30.01			67,568	0.89		–		0.56		79.3
10.77			129,852	0.90		–		0.26		64.3


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):
			Net Asset		Net			Net Realized				Dividends			Distributions			Total
			Value,		Investment			and Unrealized	Total From			from Net			from			Dividends			Net Asset
			Beginning		Income			Gain (Loss) on		Investment		Investment			Realized			and			Value, End
			of Period		(Loss)(a)			Investments		Operations		Income			Gains			Distributions			of Period
LARGECAP GROWTH FUND I
Class J shares
2016		$	11.70	($	0.01	)	$	0.02	$	0.01		$–		($	1.49	)	($	1.49	)	$	10.22
2015			11.97		(0.02	)		1.02		1.00		–			(1.27	)		(1.27	)		11.70
2014			11.35		(0.02	)		1.41		1.39		–			(0.77	)		(0.77	)		11.97
2013			8.98		–			2.81		2.81		(0.01	)		(0.43	)		(0.44	)		11.35
2012			8.55		(0.02	)		0.79		0.77		–			(0.34	)		(0.34	)		8.98
Institutional shares
2016			13.49		0.02			0.02		0.04		(0.01	)		(1.49	)		(1.50	)		12.03
2015			13.59		0.02			1.19		1.21		(0.04	)		(1.27	)		(1.31	)		13.49
2014			12.76		0.03			1.59		1.62		(0.02	)		(0.77	)		(0.79	)		13.59
2013			10.04		0.05			3.15		3.20		(0.05	)		(0.43	)		(0.48	)		12.76
2012			9.48		0.03			0.88		0.91		(0.01	)		(0.34	)		(0.35	)		10.04
R-1 shares
2016			12.23		(0.08	)		0.02		(0.06	)	–			(1.49	)		(1.49	)		10.68
2015			12.51		(0.08	)		1.07		0.99		–			(1.27	)		(1.27	)		12.23
2014			11.87		(0.08	)		1.49		1.41		–			(0.77	)		(0.77	)		12.51
2013			9.40		(0.05	)		2.95		2.90		–			(0.43	)		(0.43	)		11.87
2012			8.97		(0.06	)		0.83		0.77		–			(0.34	)		(0.34	)		9.40
R-2 shares
2016			11.97		(0.06	)		0.02		(0.04	)	–			(1.49	)		(1.49	)		10.44
2015			12.26		(0.06	)		1.04		0.98		–			(1.27	)		(1.27	)		11.97
2014			11.64		(0.06	)		1.45		1.39		–			(0.77	)		(0.77	)		12.26
2013			9.21		(0.03	)		2.89		2.86		–			(0.43	)		(0.43	)		11.64
2012			8.78		(0.04	)		0.81		0.77		–			(0.34	)		(0.34	)		9.21
R-3 shares
2016			12.68		(0.04	)		0.02		(0.02	)	–			(1.49	)		(1.49	)		11.17
2015			12.88		(0.04	)		1.11		1.07		–			(1.27	)		(1.27	)		12.68
2014			12.18		(0.04	)		1.51		1.47		–			(0.77	)		(0.77	)		12.88
2013			9.61		(0.02	)		3.03		3.01		(0.01	)		(0.43	)		(0.44	)		12.18
2012			9.13		(0.03	)		0.85		0.82		–			(0.34	)		(0.34	)		9.61
R-4 shares
2016			12.80		(0.02	)		0.02		–		–			(1.49	)		(1.49	)		11.31
2015			12.97		(0.02	)		1.12		1.10		–			(1.27	)		(1.27	)		12.80
2014			12.23		(0.02	)		1.53		1.51		–			(0.77	)		(0.77	)		12.97
2013			9.65		–			3.03		3.03		(0.02	)		(0.43	)		(0.45	)		12.23
2012			9.15		(0.01	)		0.85		0.84		–			(0.34	)		(0.34	)		9.65
R-5 shares
2016			13.14		(0.01	)		0.02		0.01		–			(1.49	)		(1.49	)		11.66
2015			13.27		(0.01	)		1.16		1.15		(0.01	)		(1.27	)		(1.28	)		13.14
2014			12.49		(0.01	)		1.56		1.55		–			(0.77	)		(0.77	)		13.27
2013			9.84		0.02			3.09		3.11		(0.03	)		(0.43	)		(0.46	)		12.49
2012			9.31		–			0.87		0.87		–			(0.34	)		(0.34	)		9.84
R-6 shares
2016			13.49		0.01			0.02		0.03		(0.01	)		(1.49	)		(1.50	)		12.02
2015	(f)		13.87		(0.01	)		0.94		0.93		(0.04	)		(1.27	)		(1.31	)		13.49


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.


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


0.13%	(c)	$	110,553	0.89	%	0.94	%	(0.13	)%	32.8	%
9.48	(c)		123,054	0.97		1.02		(0.18	)	39.3
12.90	(c)		106,144	0.99		1.05		(0.19	)	38.4
32.60	(c)		95,021	1.06		1.27		(0.03	)	37.0
9.61	(c)		69,178	1.13		1.34		(0.25	)	33.7

0.34			6,436,701	0.62	(d)	–		0.14		32.8
9.93			6,608,588	0.61	(d)	–		0.19		39.3
13.31			7,031,086	0.61	(d)	–		0.20		38.4
33.23			6,240,772	0.61	(d)	–		0.41		37.0
10.22			4,523,083	0.61	(d)	–		0.29		33.7

(0.50	)		6,716	1.47	(d)	–		(0.71	)	32.8
9.04	(e)		8,078	1.47	(d)	–		(0.67	)	39.3
12.39	(e)		8,406	1.47	(d)	–		(0.66	)	38.4
32.09			8,519	1.47	(d)	–		(0.44	)	37.0
9.14			5,708	1.48	(d)	–		(0.60	)	33.7

(0.34	)		13,145	1.34	(d)	–		(0.58	)	32.8
9.05			16,204	1.34	(d)	–		(0.54	)	39.3
12.56			21,048	1.34	(d)	–		(0.54	)	38.4
32.32			16,060	1.34	(d)	–		(0.30	)	37.0
9.34			13,403	1.35	(d)	–		(0.46	)	33.7

(0.14	)		116,736	1.16	(d)	–		(0.40	)	32.8
9.34			152,222	1.16	(d)	–		(0.36	)	39.3
12.67			165,698	1.16	(d)	–		(0.35	)	38.4
32.55			152,377	1.16	(d)	–		(0.16	)	37.0
9.54			91,042	1.17	(d)	–		(0.28	)	33.7

0.03			74,021	0.97	(d)	–		(0.21	)	32.8
9.52			94,343	0.97	(d)	–		(0.18	)	39.3
12.95			90,002	0.97	(d)	–		(0.16	)	38.4
32.75			95,501	0.97	(d)	–		0.04		37.0
9.74			58,532	0.98	(d)	–		(0.09	)	33.7

0.12			273,161	0.85	(d)	–		(0.09	)	32.8
9.70			320,510	0.85	(d)	–		(0.05	)	39.3
13.01			329,991	0.85	(d)	–		(0.05	)	38.4
32.90			250,770	0.85	(d)	–		0.18		37.0
9.91			182,770	0.86	(d)	–		0.02		33.7

0.27			3,333	0.65	(d)	–		0.09		32.8
7.72	(g)		1,383	0.65 (d)	,(h)	–		(0.09	) (h)	39.3	(h)


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized						Dividends			Distributions			Total
		Value,		Investment			and Unrealized			Total From			from Net			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments			Operations			Income			Gains			Distributions			of Period
LARGECAP GROWTH FUND II
Class J shares
2016	$	7.72	$	0.02		($	0.01	)	$	0.01		($	0.02	)	($	1.16	)	($	1.18	)	$	6.55
2015		9.69		0.01			0.55			0.56			(0.03	)		(2.50	)		(2.53	)		7.72
2014		9.37		0.01			1.19			1.20			(0.03	)		(0.85	)		(0.88	)		9.69
2013		7.66		0.04			1.83			1.87			(0.04	)		(0.12	)		(0.16	)		9.37
2012		7.62		0.01			0.73			0.74			(0.01	)		(0.69	)		(0.70	)		7.66
Institutional shares
2016		9.06		0.06			(0.02	)		0.04			(0.05	)		(1.16	)		(1.21	)		7.89
2015		10.92		0.06			0.64			0.70			(0.06	)		(2.50	)		(2.56	)		9.06
2014		10.45		0.05			1.34			1.39			(0.07	)		(0.85	)		(0.92	)		10.92
2013		8.53		0.08			2.04			2.12			(0.08	)		(0.12	)		(0.20	)		10.45
2012		8.39		0.06			0.81			0.87			(0.04	)		(0.69	)		(0.73	)		8.53
R-1 shares
2016		8.40		(0.01	)		(0.02	)		(0.03	)		–			(1.16	)		(1.16	)		7.21
2015		10.32		(0.02	)		0.60			0.58			–			(2.50	)		(2.50	)		8.40
2014		9.95		(0.04	)		1.26			1.22			–			(0.85	)		(0.85	)		10.32
2013		8.11		–			1.96			1.96			–			(0.12	)		(0.12	)		9.95
2012		8.04		(0.02	)		0.78			0.76			–			(0.69	)		(0.69	)		8.11
R-2 shares
2016		8.04		–			(0.02	)		(0.02	)		–			(1.16	)		(1.16	)		6.86
2015		9.98		(0.01	)		0.57			0.56			–			(2.50	)		(2.50	)		8.04
2014		9.63		(0.02	)		1.22			1.20			–			(0.85	)		(0.85	)		9.98
2013		7.86		0.01			1.89			1.90			(0.01	)		(0.12	)		(0.13	)		9.63
2012		7.81		–			0.74			0.74			–			(0.69	)		(0.69	)		7.86
R-3 shares
2016		8.31		0.01			(0.02	)		(0.01	)		–			(1.16	)		(1.16	)		7.14
2015		10.22		–			0.59			0.59			–			(2.50	)		(2.50	)		8.31
2014		9.84		(0.01	)		1.26			1.25			(0.02	)		(0.85	)		(0.87	)		10.22
2013		8.03		0.03			1.93			1.96			(0.03	)		(0.12	)		(0.15	)		9.84
2012		7.95		0.01			0.77			0.78			(0.01	)		(0.69	)		(0.70	)		8.03
R-4 shares
2016		8.61		0.02			(0.01	)		0.01			(0.01	)		(1.16	)		(1.17	)		7.45
2015		10.52		0.02			0.60			0.62			(0.03	)		(2.50	)		(2.53	)		8.61
2014		10.10		0.01			1.29			1.30			(0.03	)		(0.85	)		(0.88	)		10.52
2013		8.23		0.05			1.98			2.03			(0.04	)		(0.12	)		(0.16	)		10.10
2012		8.13		0.02			0.78			0.80			(0.01	)		(0.69	)		(0.70	)		8.23
R-5 shares
2016		8.74		0.03			(0.02	)		0.01			(0.02	)		(1.16	)		(1.18	)		7.57
2015		10.63		0.03			0.61			0.64			(0.03	)		(2.50	)		(2.53	)		8.74
2014		10.19		0.03			1.30			1.33			(0.04	)		(0.85	)		(0.89	)		10.63
2013		8.31		0.06			2.00			2.06			(0.06	)		(0.12	)		(0.18	)		10.19
2012		8.20		0.04			0.78			0.82			(0.02	)		(0.69	)		(0.71	)		8.31


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.30%	(c)	$	32,690	1.22	%	1.29	%	0.35	%	46.3	%
7.53	(c)		33,873	1.28		1.35		0.17		86.1
13.81	(c)		34,858	1.30		1.35		0.06		83.6
24.95	(c)		32,564	1.32		1.53		0.45		63.6
11.16	(c)		28,779	1.40		1.61		0.17		64.8

0.60			479,594	0.86	(d)	–		0.72		46.3
8.07			590,069	0.85	(d)	–		0.63		86.1
14.23			1,062,254	0.87	(d)	–		0.50		83.6
25.46			1,191,048	0.87	(d)	–		0.91		63.6
11.87			1,107,456	0.87	(d)	–		0.71		64.8

(0.26	)		786	1.74	(d)	–		(0.16	)	46.3
7.13			1,358	1.73	(d)	–		(0.29	)	86.1
13.14			1,156	1.75	(d)	–		(0.38	)	83.6
24.54			1,293	1.74	(d)	–		0.06		63.6
10.82			1,806	1.75	(d)	–		(0.19	)	64.8

(0.12	)		1,584	1.61	(d)	–		(0.04	)	46.3
7.21			1,559	1.60	(d)	–		(0.15	)	86.1
13.38			1,730	1.62	(d)	–		(0.22	)	83.6
24.65			3,250	1.61	(d)	–		0.16		63.6
10.90			3,038	1.62	(d)	–		0.00		64.8

0.03			3,759	1.43	(d)	–		0.14		46.3
7.43			6,719	1.42	(d)	–		0.04		86.1
13.61			8,378	1.44	(d)	–		(0.05	)	83.6
24.87			11,438	1.43	(d)	–		0.34		63.6
11.21			11,537	1.44	(d)	–		0.13		64.8

0.17	(e)		2,229	1.24	(d)	–		0.33		46.3
7.62	(e)		2,186	1.23	(d)	–		0.22		86.1
13.80			6,060	1.25	(d)	–		0.11		83.6
25.12			5,436	1.24	(d)	–		0.54		63.6
11.29			5,291	1.25	(d)	–		0.31		64.8

0.32			5,284	1.12	(d)	–		0.46		46.3
7.68			6,180	1.11	(d)	–		0.37		86.1
13.99			10,823	1.13	(d)	–		0.27		83.6
25.28			17,351	1.12	(d)	–		0.64		63.6
11.41			22,643	1.13	(d)	–		0.45		64.8


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized				Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments		Operations		Income			Gains			Distributions			of Period
LARGECAP S&P 500 INDEX FUND
Class J shares
2016	$	14.66	$	0.26	$	0.32	$	0.58	($	0.23	)	($	0.12	)	($	0.35	)	$	14.89
2015		14.21		0.23		0.45		0.68		(0.22	)		(0.01	)		(0.23	)		14.66
2014		12.35		0.19		1.84		2.03		(0.17	)		–			(0.17	)		14.21
2013		9.93		0.18		2.40		2.58		(0.16	)		–			(0.16	)		12.35
2012		8.81		0.15		1.11		1.26		(0.14	)		–			(0.14	)		9.93
Institutional shares
2016		14.80		0.30		0.32		0.62		(0.27	)		(0.12	)		(0.39	)		15.03
2015		14.35		0.27		0.45		0.72		(0.26	)		(0.01	)		(0.27	)		14.80
2014		12.47		0.24		1.85		2.09		(0.21	)		–			(0.21	)		14.35
2013		10.02		0.23		2.42		2.65		(0.20	)		–			(0.20	)		12.47
2012		8.89		0.19		1.11		1.30		(0.17	)		–			(0.17	)		10.02
R-1 shares
2016		14.70		0.17		0.32		0.49		(0.14	)		(0.12	)		(0.26	)		14.93
2015		14.26		0.15		0.44		0.59		(0.14	)		(0.01	)		(0.15	)		14.70
2014		12.39		0.13		1.84		1.97		(0.10	)		–			(0.10	)		14.26
2013		9.96		0.13		2.41		2.54		(0.11	)		–			(0.11	)		12.39
2012		8.83		0.11		1.11		1.22		(0.09	)		–			(0.09	)		9.96
R-2 shares
2016		14.80		0.19		0.32		0.51		(0.15	)		(0.12	)		(0.27	)		15.04
2015		14.35		0.17		0.44		0.61		(0.15	)		(0.01	)		(0.16	)		14.80
2014		12.47		0.14		1.86		2.00		(0.12	)		–			(0.12	)		14.35
2013		10.02		0.14		2.44		2.58		(0.13	)		–			(0.13	)		12.47
2012		8.88		0.12		1.12		1.24		(0.10	)		–			(0.10	)		10.02
R-3 shares
2016		14.78		0.21		0.33		0.54		(0.18	)		(0.12	)		(0.30	)		15.02
2015		14.33		0.19		0.45		0.64		(0.18	)		(0.01	)		(0.19	)		14.78
2014		12.45		0.17		1.86		2.03		(0.15	)		–			(0.15	)		14.33
2013		10.02		0.16		2.42		2.58		(0.15	)		–			(0.15	)		12.45
2012		8.89		0.13		1.13		1.26		(0.13	)		–			(0.13	)		10.02
R-4 shares
2016		14.83		0.24		0.33		0.57		(0.21	)		(0.12	)		(0.33	)		15.07
2015		14.39		0.22		0.44		0.66		(0.21	)		(0.01	)		(0.22	)		14.83
2014		12.50		0.19		1.87		2.06		(0.17	)		–			(0.17	)		14.39
2013		10.05		0.18		2.44		2.62		(0.17	)		–			(0.17	)		12.50
2012		8.92		0.15		1.12		1.27		(0.14	)		–			(0.14	)		10.05
R-5 shares
2016		14.95		0.26		0.34		0.60		(0.23	)		(0.12	)		(0.35	)		15.20
2015		14.50		0.24		0.45		0.69		(0.23	)		(0.01	)		(0.24	)		14.95
2014		12.60		0.21		1.87		2.08		(0.18	)		–			(0.18	)		14.50
2013		10.13		0.20		2.45		2.65		(0.18	)		–			(0.18	)		12.60
2012		8.98		0.17		1.13		1.30		(0.15	)		–			(0.15	)		10.13


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


4.05%	(c)	$	530,674	0.40	%	0.43	%	1.79	%	4.2	%
4.78	(c)		518,099	0.45		0.50		1.59		6.3
16.61	(c)		508,718	0.50		0.54		1.47		5.9
26.39	(c)		435,774	0.54		0.74		1.66		3.0
14.49	(c)		349,801	0.59		0.78		1.55		3.5

4.31			3,244,789	0.16		–		2.03		4.2
5.06			3,232,141	0.16		–		1.87		6.3
17.00			2,530,539	0.16		–		1.81		5.9
26.98			2,231,434	0.16		0.16		2.02		3.0
14.97			1,687,068	0.16		0.16		1.97		3.5

3.43			18,393	1.04		–		1.17		4.2
4.16			21,157	1.03		–		1.00		6.3
16.00			18,889	1.03		–		0.95		5.9
25.81			18,762	1.03		–		1.17		3.0
13.98			16,940	1.04		–		1.11		3.5

3.53			30,093	0.91		–		1.29		4.2
4.27			30,689	0.90		–		1.14		6.3
16.20			37,848	0.90		–		1.09		5.9
26.00			43,560	0.90		–		1.29		3.0
14.12			37,824	0.91		–		1.24		3.5

3.74			194,613	0.73		–		1.47		4.2
4.46			217,562	0.72		–		1.32		6.3
16.43			248,852	0.72		–		1.25		5.9
26.14			219,693	0.72		–		1.47		3.0
14.35			170,210	0.73		–		1.41		3.5

3.96			189,284	0.54		–		1.67		4.2
4.62			219,215	0.53		–		1.51		6.3
16.67			214,570	0.53		–		1.44		5.9
26.43			179,047	0.53		–		1.64		3.0
14.50			120,923	0.54		–		1.61		3.5

4.11			411,195	0.42		–		1.77		4.2
4.76			381,876	0.41		–		1.63		6.3
16.73			418,629	0.41		–		1.56		5.9
26.58			354,869	0.41		–		1.77		3.0
14.74			260,492	0.42		–		1.73		3.5


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From			from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
LARGECAP VALUE FUND
Class J shares
2016	$	12.53	$	0.20	($	0.40	)	($	0.20	)	($	0.20	)	($	0.88	)	($	1.08	)	$	11.25
2015		13.69		0.18		0.18			0.36			(0.16	)		(1.36	)		(1.52	)		12.53
2014		13.39		0.16		1.42			1.58			(0.11	)		(1.17	)		(1.28	)		13.69
2013		10.74		0.19		2.64			2.83			(0.18	)		–			(0.18	)		13.39
2012		9.19		0.14		1.50			1.64			(0.09	)		–			(0.09	)		10.74
Institutional shares
2016		12.75		0.24		(0.40	)		(0.16	)		(0.25	)		(0.88	)		(1.13	)		11.46
2015		13.90		0.24		0.18			0.42			(0.21	)		(1.36	)		(1.57	)		12.75
2014		13.58		0.21		1.45			1.66			(0.17	)		(1.17	)		(1.34	)		13.90
2013		10.90		0.25		2.66			2.91			(0.23	)		–			(0.23	)		13.58
2012		9.32		0.20		1.52			1.72			(0.14	)		–			(0.14	)		10.90
R-1 shares
2016		12.60		0.14		(0.40	)		(0.26	)		(0.14	)		(0.88	)		(1.02	)		11.32
2015		13.76		0.12		0.17			0.29			(0.09	)		(1.36	)		(1.45	)		12.60
2014		13.47		0.09		1.44			1.53			(0.07	)		(1.17	)		(1.24	)		13.76
2013		10.80		0.15		2.65			2.80			(0.13	)		–			(0.13	)		13.47
2012		9.23		0.10		1.52			1.62			(0.05	)		–			(0.05	)		10.80
R-2 shares
2016		12.64		0.15		(0.40	)		(0.25	)		(0.13	)		(0.88	)		(1.01	)		11.38
2015		13.81		0.14		0.17			0.31			(0.12	)		(1.36	)		(1.48	)		12.64
2014		13.52		0.11		1.45			1.56			(0.10	)		(1.17	)		(1.27	)		13.81
2013		10.84		0.16		2.67			2.83			(0.15	)		–			(0.15	)		13.52
2012		9.25		0.12		1.52			1.64			(0.05	)		–			(0.05	)		10.84
R-3 shares
2016		12.63		0.17		(0.39	)		(0.22	)		(0.18	)		(0.88	)		(1.06	)		11.35
2015		13.80		0.16		0.18			0.34			(0.15	)		(1.36	)		(1.51	)		12.63
2014		13.50		0.14		1.44			1.58			(0.11	)		(1.17	)		(1.28	)		13.80
2013		10.83		0.18		2.67			2.85			(0.18	)		–			(0.18	)		13.50
2012		9.26		0.14		1.51			1.65			(0.08	)		–			(0.08	)		10.83
R-4 shares
2016		12.62		0.20		(0.40	)		(0.20	)		(0.20	)		(0.88	)		(1.08	)		11.34
2015		13.78		0.19		0.17			0.36			(0.16	)		(1.36	)		(1.52	)		12.62
2014		13.47		0.16		1.44			1.60			(0.12	)		(1.17	)		(1.29	)		13.78
2013		10.81		0.20		2.65			2.85			(0.19	)		–			(0.19	)		13.47
2012		9.24		0.16		1.51			1.67			(0.10	)		–			(0.10	)		10.81
R-5 shares
2016		12.75		0.21		(0.41	)		(0.20	)		(0.21	)		(0.88	)		(1.09	)		11.46
2015		13.90		0.20		0.18			0.38			(0.17	)		(1.36	)		(1.53	)		12.75
2014		13.57		0.18		1.45			1.63			(0.13	)		(1.17	)		(1.30	)		13.90
2013		10.91		0.22		2.66			2.88			(0.22	)		–			(0.22	)		13.57
2012		9.32		0.17		1.53			1.70			(0.11	)		–			(0.11	)		10.91


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(1.56)%	(c)	$	61,362	0.73	%	0.76	%	1.77	%	99.2	%
2.81	(c)		68,986	0.79		0.82		1.46		90.6
12.75	(c)		75,289	0.83		0.87		1.18		118.8
26.74	(c)		68,659	0.91		1.11		1.59		121.4
17.97	(c)		51,317	0.99		1.18		1.39		117.4

(1.24	)		2,082,564	0.43		–		2.05		99.2
3.24			2,187,554	0.42		–		1.85		90.6
13.19			3,432,095	0.41		–		1.59		118.8
27.26			2,998,720	0.43		–		2.04		121.4
18.71			1,612,943	0.44		–		1.94		117.4

(2.13	)		1,370	1.30		–		1.22		99.2
2.29			1,384	1.29		–		0.95		90.6
12.21			1,415	1.29		–		0.71		118.8
26.24			1,517	1.30		–		1.21		121.4
17.65			1,115	1.31		–		1.05		117.4

(1.97	)		2,256	1.17		–		1.30		99.2
2.39			2,048	1.16		–		1.13		90.6
12.39			4,144	1.16		–		0.85		118.8
26.40			3,487	1.17		–		1.29		121.4
17.83			2,032	1.18		–		1.19		117.4

(1.78	)		3,701	0.99		–		1.50		99.2
2.60			3,815	0.98		–		1.26		90.6
12.57			4,508	0.98		–		1.03		118.8
26.67			3,725	0.99		–		1.52		121.4
18.03			2,753	1.00		–		1.37		117.4

(1.60	)		1,442	0.80		–		1.71		99.2
2.77			2,116	0.79		–		1.46		90.6
12.80			2,579	0.79		–		1.22		118.8
26.81			2,721	0.80		–		1.65		121.4
18.26			2,117	0.81		–		1.58		117.4

(1.48	) (d)		4,060	0.68		–		1.85		99.2
2.94			7,201	0.67		–		1.57		90.6
12.91			8,092	0.67		–		1.36		118.8
26.89			9,285	0.68		–		1.85		121.4
18.44			5,500	0.69		–		1.69		117.4


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized				Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From	from Net				from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment	Investment				Realized			and			Value, End
		of Period		(Loss)(a)		Investments		Operations	Income				Gains			Distributions			of Period
LARGECAP VALUE FUND III
Class J shares
2016	$	15.58	$	0.23	$	0.18	$	0.41	($	0.21	)	($	0.90	)	($	1.11	)	$	14.88
2015		15.55		0.19		0.19		0.38		(0.19	)		(0.16	)		(0.35	)		15.58
2014		13.56		0.17		1.85		2.02		(0.03	)		–			(0.03	)		15.55
2013		10.91		0.15		2.71		2.86		(0.21	)		–			(0.21	)		13.56
2012		9.73		0.14		1.17		1.31		(0.13	)		–			(0.13	)		10.91
Institutional shares
2016		15.79		0.28		0.18		0.46		(0.27	)		(0.90	)		(1.17	)		15.08
2015		15.75		0.25		0.20		0.45		(0.25	)		(0.16	)		(0.41	)		15.79
2014		13.74		0.22		1.88		2.10		(0.09	)		–			(0.09	)		15.75
2013		11.07		0.19		2.75		2.94		(0.27	)		–			(0.27	)		13.74
2012		9.86		0.20		1.19		1.39		(0.18	)		–			(0.18	)		11.07
R-1 shares
2016		15.68		0.15		0.18		0.33		(0.13	)		(0.90	)		(1.03	)		14.98
2015		15.68		0.11		0.19		0.30		(0.14	)		(0.16	)		(0.30	)		15.68
2014		13.71		0.08		1.89		1.97		–			–			–			15.68
2013		11.02		0.10		2.74		2.84		(0.15	)		–			(0.15	)		13.71
2012		9.79		0.10		1.19		1.29		(0.06	)		–			(0.06	)		11.02
R-2 shares
2016		15.67		0.18		0.17		0.35		(0.09	)		(0.90	)		(0.99	)		15.03
2015		15.64		0.13		0.20		0.33		(0.14	)		(0.16	)		(0.30	)		15.67
2014		13.66		0.11		1.87		1.98		–			–			–			15.64
2013		10.98		0.11		2.74		2.85		(0.17	)		–			(0.17	)		13.66
2012		9.76		0.12		1.18		1.30		(0.08	)		–			(0.08	)		10.98
R-3 shares
2016		16.29		0.20		0.19		0.39		(0.17	)		(0.90	)		(1.07	)		15.61
2015		16.24		0.17		0.20		0.37		(0.16	)		(0.16	)		(0.32	)		16.29
2014		14.18		0.14		1.93		2.07		(0.01	)		–			(0.01	)		16.24
2013		11.39		0.14		2.83		2.97		(0.18	)		–			(0.18	)		14.18
2012		10.13		0.14		1.23		1.37		(0.11	)		–			(0.11	)		11.39
R-4 shares
2016		15.74		0.23		0.19		0.42		(0.21	)		(0.90	)		(1.11	)		15.05
2015		15.72		0.19		0.19		0.38		(0.20	)		(0.16	)		(0.36	)		15.74
2014		13.71		0.16		1.89		2.05		(0.04	)		–			(0.04	)		15.72
2013		11.03		0.16		2.73		2.89		(0.21	)		–			(0.21	)		13.71
2012		9.82		0.16		1.19		1.35		(0.14	)		–			(0.14	)		11.03
R-5 shares
2016		15.86		0.25		0.18		0.43		(0.23	)		(0.90	)		(1.13	)		15.16
2015		15.82		0.21		0.20		0.41		(0.21	)		(0.16	)		(0.37	)		15.86
2014		13.77		0.19		1.89		2.08		(0.03	)		–			(0.03	)		15.82
2013		11.11		0.17		2.74		2.91		(0.25	)		–			(0.25	)		13.77
2012		9.87		0.17		1.20		1.37		(0.13	)		–			(0.13	)		11.11


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


3.05%	(c)	$	68,742	1.08	%	1.12	%	1.60	%	35.0	%
2.40	(c)		72,661	1.14		1.18		1.21		27.6
14.96	(c)		78,435	1.15		1.20		1.14		41.3	(d)
26.65	(c)		73,120	1.22		1.43		1.21		64.8
13.63	(c)		62,870	1.31		1.52		1.33		58.3

3.37			1,634,892	0.77	(e)	–		1.91		35.0
2.82			1,796,638	0.76	(e)	–		1.60		27.6
15.36			2,804,940	0.76	(e)	–		1.51		41.3	(d)
27.13			1,657,474	0.79	(e)	–		1.56		64.8
14.38			677,325	0.78	(e)	–		1.92		58.3

2.46			4,072	1.65	(e)	–		1.03		35.0
1.91			4,604	1.64	(e)	–		0.71		27.6
14.37			5,160	1.63	(e)	–		0.56		41.3	(d)
26.10			2,175	1.67	(e)	–		0.79		64.8
13.31			2,369	1.66	(e)	–		0.99		58.3

2.56			3,096	1.52	(e)	–		1.20		35.0
2.11			5,018	1.51	(e)	–		0.84		27.6
14.49			5,737	1.50	(e)	–		0.75		41.3	(d)
26.27			5,605	1.54	(e)	–		0.92		64.8
13.42			6,283	1.53	(e)	–		1.15		58.3

2.78			11,209	1.34	(e)	–		1.34		35.0
2.28			11,864	1.33	(e)	–		1.02		27.6
14.64			15,163	1.32	(e)	–		0.94		41.3	(d)
26.47			10,306	1.36	(e)	–		1.09		64.8
13.64			9,792	1.35	(e)	–		1.31		58.3

2.97	(f)		5,659	1.15	(e)	–		1.53		35.0
2.46	(f)		6,276	1.14	(e)	–		1.22		27.6
14.96			9,314	1.13	(e)	–		1.09		41.3	(d)
26.67			5,773	1.17	(e)	–		1.27		64.8
13.93			5,167	1.16	(e)	–		1.58		58.3

3.09			7,123	1.03	(e)	–		1.65		35.0
2.56			11,280	1.02	(e)	–		1.32		27.6
15.11			9,397	1.01	(e)	–		1.26		41.3	(d)
26.72			8,642	1.05	(e)	–		1.40		64.8
14.10			8,898	1.04	(e)	–		1.63		58.3


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized			Dividends			Distributions			Total
		Value,		Investment			and Unrealized	Total From		from Net			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on		Investment	Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments		Operations	Income			Gains			Distributions			of Period
MIDCAP FUND
Class J shares
2016	$	21.47	$	0.07		$	0.77	$	0.84	$–		($	1.29	)	($	1.29	)	$	21.02
2015		21.27		0.01			1.30		1.31	(0.03	)		(1.08	)		(1.11	)		21.47
2014		19.21		0.04			2.44		2.48	–			(0.42	)		(0.42	)		21.27
2013		14.95		0.05			4.57		4.62	(0.13	)		(0.23	)		(0.36	)		19.21
2012		13.60		0.05			2.13		2.18	(0.02	)		(0.81	)		(0.83	)		14.95
Institutional shares
2016		22.60		0.11			0.82		0.93	(0.03	)		(1.29	)		(1.32	)		22.21
2015		22.33		0.05			1.38		1.43	(0.08	)		(1.08	)		(1.16	)		22.60
2014		20.15		0.09			2.56		2.65	(0.05	)		(0.42	)		(0.47	)		22.33
2013		15.67		0.10			4.80		4.90	(0.19	)		(0.23	)		(0.42	)		20.15
2012		14.22		0.12			2.22		2.34	(0.08	)		(0.81	)		(0.89	)		15.67
R-1 shares
2016		21.11		(0.06	)		0.74		0.68	–			(1.29	)		(1.29	)		20.50
2015		21.02		(0.12	)		1.29		1.17	–			(1.08	)		(1.08	)		21.11
2014		19.09		(0.07	)		2.42		2.35	–			(0.42	)		(0.42	)		21.02
2013		14.92		(0.04	)		4.56		4.52	(0.12	)		(0.23	)		(0.35	)		19.09
2012		13.62		–			2.11		2.11	–			(0.81	)		(0.81	)		14.92
R-2 shares
2016		21.33		(0.04	)		0.76		0.72	–			(1.29	)		(1.29	)		20.76
2015		21.20		(0.09	)		1.30		1.21	–			(1.08	)		(1.08	)		21.33
2014		19.23		(0.05	)		2.44		2.39	–			(0.42	)		(0.42	)		21.20
2013		15.00		(0.02	)		4.59		4.57	(0.11	)		(0.23	)		(0.34	)		19.23
2012		13.66		0.01			2.14		2.15	–			(0.81	)		(0.81	)		15.00
R-3 shares
2016		21.90		–			0.79		0.79	–			(1.29	)		(1.29	)		21.40
2015		21.70		(0.05	)		1.33		1.28	–			(1.08	)		(1.08	)		21.90
2014		19.64		(0.01	)		2.49		2.48	–			(0.42	)		(0.42	)		21.70
2013		15.32		0.01			4.68		4.69	(0.14	)		(0.23	)		(0.37	)		19.64
2012		13.91		0.04			2.18		2.22	–			(0.81	)		(0.81	)		15.32
R-4 shares
2016		22.55		0.04			0.81		0.85	–			(1.29	)		(1.29	)		22.11
2015		22.29		(0.01	)		1.36		1.35	(0.01	)		(1.08	)		(1.09	)		22.55
2014		20.12		0.03			2.56		2.59	–			(0.42	)		(0.42	)		22.29
2013		15.66		0.05			4.79		4.84	(0.15	)		(0.23	)		(0.38	)		20.12
2012		14.23		0.07			2.22		2.29	(0.05	)		(0.81	)		(0.86	)		15.66
R-5 shares
2016		22.38		0.07			0.80		0.87	–			(1.29	)		(1.29	)		21.96
2015		22.13		0.01			1.36		1.37	(0.04	)		(1.08	)		(1.12	)		22.38
2014		19.98		0.05			2.54		2.59	(0.02	)		(0.42	)		(0.44	)		22.13
2013		15.55		0.07			4.75		4.82	(0.16	)		(0.23	)		(0.39	)		19.98
2012		14.12		0.08			2.21		2.29	(0.05	)		(0.81	)		(0.86	)		15.55


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


4.35%	(c)	$	261,105	0.82	%	0.85	%	0.35	%	22.4	%
6.42	(c)		278,993	0.88		0.91		0.04		22.6
13.18	(c)		290,503	0.92		0.96		0.19		18.3
31.56	(c)		287,254	0.98		1.18		0.31		13.0
17.27	(c)		222,928	1.10		1.29		0.35		21.1

4.49	(d)		5,356,398	0.68		–		0.49		22.4
6.71	(d)		5,328,050	0.67		–		0.23		22.6
13.45			3,836,296	0.68		–		0.43		18.3
32.04			2,828,522	0.66		0.66		0.59		13.0
17.72			1,389,161	0.65		0.65		0.80		21.1

3.63			66,856	1.47		–		(0.30	)	22.4
5.81			58,620	1.47		–		(0.58	)	22.6
12.57			32,574	1.47		–		(0.38	)	18.3
30.96			20,791	1.48		–		(0.25	)	13.0
16.68			7,778	1.50		–		(0.03	)	21.1

3.79			28,422	1.34		–		(0.18	)	22.4
5.95			34,310	1.34		–		(0.41	)	22.6
12.69			40,695	1.34		–		(0.23	)	18.3
31.09			40,741	1.35		–		(0.10	)	13.0
16.93			21,181	1.37		–		0.08		21.1

4.02			123,971	1.16		–		0.00		22.4
6.15			151,776	1.16		–		(0.24	)	22.6
12.89			158,675	1.16		–		(0.05	)	18.3
31.30			155,477	1.17		–		0.08		13.0
17.17			77,423	1.19		–		0.28		21.1

4.18			145,709	0.97		–		0.19		22.4
6.32			154,669	0.97		–		(0.06	)	22.6
13.13			168,845	0.97		–		0.14		18.3
31.59			163,047	0.98		–		0.28		13.0
17.33			90,257	1.00		–		0.44		21.1

4.31			304,581	0.85		–		0.31		22.4
6.46			325,637	0.85		–		0.06		22.6
13.25			266,198	0.85		–		0.25		18.3
31.74			196,640	0.86		–		0.37		13.0
17.46			77,833	0.88		–		0.57		21.1

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net			Net Realized						Distributions			Total
		Value,		Investment			and Unrealized			Total From			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on			Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments			Operations			Gains			Distributions			of Period
MIDCAP GROWTH FUND
Class J shares
2016	$	5.84	$	0.01		($	0.19	)	($	0.18	)	($	0.16	)	($	0.16	)	$	5.50
2015		6.96		(0.04	)		0.51			0.47			(1.59	)		(1.59	)		5.84
2014		8.00		(0.04	)		0.87			0.83			(1.87	)		(1.87	)		6.96
2013		6.51		(0.04	)		1.95			1.91			(0.42	)		(0.42	)		8.00
2012		7.15		(0.04	)		0.31			0.27			(0.91	)		(0.91	)		6.51
Institutional shares
2016		7.25		0.02			(0.23	)		(0.21	)		(0.16	)		(0.16	)		6.88
2015		8.23		(0.01	)		0.62			0.61			(1.59	)		(1.59	)		7.25
2014		9.08		(0.01	)		1.03			1.02			(1.87	)		(1.87	)		8.23
2013		7.31		–			2.19			2.19			(0.42	)		(0.42	)		9.08
2012		7.86		–			0.36			0.36			(0.91	)		(0.91	)		7.31
R-1 shares
2016		6.12		(0.02	)		(0.20	)		(0.22	)		(0.16	)		(0.16	)		5.74
2015		7.24		(0.06	)		0.53			0.47			(1.59	)		(1.59	)		6.12
2014		8.27		(0.07	)		0.91			0.84			(1.87	)		(1.87	)		7.24
2013		6.74		(0.06	)		2.01			1.95			(0.42	)		(0.42	)		8.27
2012		7.38		(0.06	)		0.33			0.27			(0.91	)		(0.91	)		6.74
R-2 shares
2016		6.54		(0.02	)		(0.21	)		(0.23	)		(0.16	)		(0.16	)		6.15
2015		7.63		(0.06	)		0.56			0.50			(1.59	)		(1.59	)		6.54
2014		8.60		(0.06	)		0.96			0.90			(1.87	)		(1.87	)		7.63
2013		6.98		(0.05	)		2.09			2.04			(0.42	)		(0.42	)		8.60
2012		7.61		(0.05	)		0.33			0.28			(0.91	)		(0.91	)		6.98
R-3 shares
2016		6.91		–			(0.24	)		(0.24	)		(0.16	)		(0.16	)		6.51
2015		7.95		(0.05	)		0.60			0.55			(1.59	)		(1.59	)		6.91
2014		8.87		(0.05	)		1.00			0.95			(1.87	)		(1.87	)		7.95
2013		7.18		(0.04	)		2.15			2.11			(0.42	)		(0.42	)		8.87
2012		7.78		(0.04	)		0.35			0.31			(0.91	)		(0.91	)		7.18
R-4 shares
2016		7.24		–			(0.23	)		(0.23	)		(0.16	)		(0.16	)		6.85
2015		8.24		(0.04	)		0.63			0.59			(1.59	)		(1.59	)		7.24
2014		9.12		(0.03	)		1.02			0.99			(1.87	)		(1.87	)		8.24
2013		7.36		(0.03	)		2.21			2.18			(0.42	)		(0.42	)		9.12
2012		7.93		(0.03	)		0.37			0.34			(0.91	)		(0.91	)		7.36
R-5 shares
2016		7.48		0.01			(0.24	)		(0.23	)		(0.16	)		(0.16	)		7.09
2015		8.46		(0.03	)		0.64			0.61			(1.59	)		(1.59	)		7.48
2014		9.30		(0.02	)		1.05			1.03			(1.87	)		(1.87	)		8.46
2013		7.48		(0.02	)		2.26			2.24			(0.42	)		(0.42	)		9.30
2012		8.05		(0.02	)		0.36			0.34			(0.91	)		(0.91	)		7.48


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(3.03)%	(c)	$	49,592	1.03	%	1.06	%	0.18	%	110.3	%
8.34	(c)		65,375	1.20		1.23		(0.64	)	128.9
12.73	(c)		42,144	1.20		1.24		(0.55	)	184.6
31.12	(c)		31,805	1.22		1.42		(0.51	)	222.6
5.71	(c)		23,812	1.28		1.47		(0.60	)	167.6

(2.85	)		41,967	0.75		0.81		0.33		110.3
8.84			37,603	0.75		0.75		(0.17	)	128.9
13.41			33,471	0.75		0.78		(0.14	)	184.6
31.57			65,325	0.74		0.77		(0.04	)	222.6
6.40			49,383	0.70		0.78		(0.02	)	167.6

(3.56	)		1,275	1.55		–		(0.37	)	110.3
7.95			1,607	1.56		–		(0.99	)	128.9
12.34			1,269	1.56		–		(0.92	)	184.6
30.63			1,518	1.56		–		(0.85	)	222.6
5.48			1,503	1.56		–		(0.88	)	167.6

(3.63	) (d)		3,717	1.42		–		(0.28	)	110.3
8.11	(d)		3,642	1.43		–		(0.86	)	128.9
12.62			2,751	1.43		–		(0.78	)	184.6
30.86			2,699	1.43		–		(0.72	)	222.6
5.45			2,609	1.43		–		(0.76	)	167.6

(3.44	)		9,967	1.24		–		(0.05	)	110.3
8.31			11,746	1.25		–		(0.74	)	128.9
12.83			4,118	1.25		–		(0.58	)	184.6
30.99			3,830	1.25		–		(0.52	)	222.6
5.75			5,306	1.25		–		(0.58	)	167.6

(3.14	)		6,594	1.05		–		0.03		110.3
8.53			5,296	1.06		–		(0.53	)	128.9
12.96			2,193	1.06		–		(0.42	)	184.6
31.20			2,239	1.06		–		(0.35	)	222.6
6.05			2,608	1.06		–		(0.45	)	167.6

(3.04	)		16,619	0.93		–		0.21		110.3
8.56			17,729	0.94		–		(0.37	)	128.9
13.16			14,192	0.94		–		(0.29	)	184.6
31.51			15,380	0.94		–		(0.26	)	222.6
5.95			19,913	0.94		–		(0.30	)	167.6


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized					Dividends			Distributions			Total
		Value,		Investment			and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments			Operations		Income			Gains			Distributions			of Period
MIDCAP GROWTH FUND III
Class J shares
2016	$	8.88	($	0.03	)	($	0.11	)	($	0.14	)	$–		($	0.50	)	($	0.50	)	$	8.24
2015		11.26		(0.07	)		0.30			0.23		–			(2.61	)		(2.61	)		8.88
2014		12.69		(0.06	)		1.10			1.04		–			(2.47	)		(2.47	)		11.26
2013		9.91		(0.06	)		3.08			3.02		–			(0.24	)		(0.24	)		12.69
2012		9.71		(0.05	)		0.25			0.20		–			–			–			9.91
Institutional shares
2016		10.42		–			(0.13	)		(0.13	)	–			(0.50	)		(0.50	)		9.79
2015		12.72		(0.04	)		0.35			0.31		–			(2.61	)		(2.61	)		10.42
2014		13.97		(0.01	)		1.23			1.22		–			(2.47	)		(2.47	)		12.72
2013		10.87		–			3.38			3.38		(0.04	)		(0.24	)		(0.28	)		13.97
2012		10.59		0.01			0.27			0.28		–			–			–			10.87
R-1 shares
2016		9.04		(0.08	)		(0.11	)		(0.19	)	–			(0.50	)		(0.50	)		8.35
2015		11.46		(0.12	)		0.31			0.19		–			(2.61	)		(2.61	)		9.04
2014		12.91		(0.11	)		1.13			1.02		–			(2.47	)		(2.47	)		11.46
2013		10.12		(0.10	)		3.13			3.03		–			(0.24	)		(0.24	)		12.91
2012		9.95		(0.08	)		0.25			0.17		–			–			–			10.12
R-2 shares
2016		9.34		(0.07	)		(0.11	)		(0.18	)	–			(0.50	)		(0.50	)		8.66
2015		11.75		(0.11	)		0.31			0.20		–			(2.61	)		(2.61	)		9.34
2014		13.16		(0.09	)		1.15			1.06		–			(2.47	)		(2.47	)		11.75
2013		10.30		(0.09	)		3.19			3.10		–			(0.24	)		(0.24	)		13.16
2012		10.11		(0.07	)		0.26			0.19		–			–			–			10.30
R-3 shares
2016		9.99		(0.06	)		(0.12	)		(0.18	)	–			(0.50	)		(0.50	)		9.31
2015		12.36		(0.09	)		0.33			0.24		–			(2.61	)		(2.61	)		9.99
2014		13.71		(0.08	)		1.20			1.12		–			(2.47	)		(2.47	)		12.36
2013		10.70		(0.07	)		3.32			3.25		–			(0.24	)		(0.24	)		13.71
2012		10.48		(0.05	)		0.27			0.22		–			–			–			10.70
R-4 shares
2016		10.20		(0.04	)		(0.13	)		(0.17	)	–			(0.50	)		(0.50	)		9.53
2015		12.54		(0.07	)		0.34			0.27		–			(2.61	)		(2.61	)		10.20
2014		13.85		(0.05	)		1.21			1.16		–			(2.47	)		(2.47	)		12.54
2013		10.79		(0.05	)		3.35			3.30		–			(0.24	)		(0.24	)		13.85
2012		10.55		(0.04	)		0.28			0.24		–			–			–			10.79
R-5 shares
2016		10.55		(0.03	)		(0.13	)		(0.16	)	–			(0.50	)		(0.50	)		9.89
2015		12.87		(0.07	)		0.36			0.29		–			(2.61	)		(2.61	)		10.55
2014		14.13		(0.04	)		1.25			1.21		–			(2.47	)		(2.47	)		12.87
2013		10.99		(0.03	)		3.41			3.38		–			(0.24	)		(0.24	)		14.13
2012		10.74		(0.02	)		0.27			0.25		–			–			–			10.99


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(1.47)%	(c)	$	31,465	1.30	%	1.36	%	(0.39	)%	64.6	%
2.53	(c)		35,147	1.37		1.43		(0.77	)	64.6
9.50	(c)		37,273	1.41		1.47		(0.53	)	131.4
31.14	(c)		37,316	1.43		1.65		(0.53	)	105.0
2.06	(c)		29,541	1.50		1.71		(0.48	)	127.6

(1.15	)		1,302,544	0.95	(d)	–		(0.04	)	64.6
2.93			1,319,604	0.95	(d)	–		(0.34	)	64.6
9.99			1,378,931	0.95	(d)	–		(0.07	)	131.4
31.78			1,406,949	0.95	(d)	–		(0.04	)	105.0
2.64			1,310,305	0.95	(d)	–		0.07		127.6

(2.03	)		2,023	1.82	(d)	–		(0.90	)	64.6
2.05			2,914	1.83	(d)	–		(1.22	)	64.6
9.12			3,400	1.83	(d)	–		(0.95	)	131.4
30.57			3,446	1.83	(d)	–		(0.88	)	105.0
1.71			3,731	1.83	(d)	–		(0.82	)	127.6

(1.95	) (e)		3,057	1.69	(d)	–		(0.79	)	64.6
2.21	(e)		4,233	1.70	(d)	–		(1.09	)	64.6
9.27			4,970	1.70	(d)	–		(0.81	)	131.4
30.72			6,205	1.70	(d)	–		(0.78	)	105.0
1.88			6,229	1.70	(d)	–		(0.69	)	127.6

(1.72	)		6,088	1.51	(d)	–		(0.60	)	64.6
2.36			8,561	1.52	(d)	–		(0.87	)	64.6
9.36			18,078	1.52	(d)	–		(0.63	)	131.4
30.98			22,048	1.52	(d)	–		(0.58	)	105.0
2.10			23,334	1.52	(d)	–		(0.50	)	127.6

(1.58	)		5,682	1.32	(d)	–		(0.41	)	64.6
2.60			8,250	1.33	(d)	–		(0.68	)	64.6
9.58			22,511	1.33	(d)	–		(0.44	)	131.4
31.19			27,086	1.33	(d)	–		(0.39	)	105.0
2.27			24,559	1.33	(d)	–		(0.32	)	127.6

(1.42	)		7,628	1.20	(d)	–		(0.28	)	64.6
2.72			10,947	1.21	(d)	–		(0.61	)	64.6
9.76			11,399	1.21	(d)	–		(0.30	)	131.4
31.38			20,890	1.21	(d)	–		(0.22	)	105.0
2.33			37,395	1.21	(d)	–		(0.19	)	127.6


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized				Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments		Operations		Income			Gains			Distributions			of Period
MIDCAP S&P 400 INDEX FUND
Class J shares
2016	$	19.04	$	0.23	$	0.72	$	0.95	($	0.18	)	($	1.19	)	($	1.37	)	$	18.62
2015		19.58		0.18		0.35		0.53		(0.16	)		(0.91	)		(1.07	)		19.04
2014		18.35		0.15		1.80		1.95		(0.12	)		(0.60	)		(0.72	)		19.58
2013		14.43		0.14		4.40		4.54		(0.13	)		(0.49	)		(0.62	)		18.35
2012		13.60		0.10		1.34		1.44		(0.07	)		(0.54	)		(0.61	)		14.43
Institutional shares
2016		19.50		0.29		0.74		1.03		(0.24	)		(1.19	)		(1.43	)		19.10
2015		20.03		0.25		0.36		0.61		(0.23	)		(0.91	)		(1.14	)		19.50
2014		18.74		0.23		1.84		2.07		(0.18	)		(0.60	)		(0.78	)		20.03
2013		14.73		0.22		4.47		4.69		(0.19	)		(0.49	)		(0.68	)		18.74
2012		13.87		0.17		1.36		1.53		(0.13	)		(0.54	)		(0.67	)		14.73
R-1 shares
2016		19.23		0.14		0.73		0.87		(0.07	)		(1.19	)		(1.26	)		18.84
2015		19.78		0.08		0.35		0.43		(0.07	)		(0.91	)		(0.98	)		19.23
2014		18.58		0.07		1.82		1.89		(0.09	)		(0.60	)		(0.69	)		19.78
2013		14.60		0.08		4.46		4.54		(0.07	)		(0.49	)		(0.56	)		18.58
2012		13.74		0.05		1.36		1.41		(0.01	)		(0.54	)		(0.55	)		14.60
R-2 shares
2016		19.75		0.16		0.77		0.93		(0.09	)		(1.19	)		(1.28	)		19.40
2015		20.28		0.11		0.36		0.47		(0.09	)		(0.91	)		(1.00	)		19.75
2014		18.98		0.10		1.86		1.96		(0.06	)		(0.60	)		(0.66	)		20.28
2013		14.89		0.10		4.55		4.65		(0.07	)		(0.49	)		(0.56	)		18.98
2012		13.99		0.07		1.39		1.46		(0.02	)		(0.54	)		(0.56	)		14.89
R-3 shares
2016		19.71		0.20		0.75		0.95		(0.13	)		(1.19	)		(1.32	)		19.34
2015		20.24		0.15		0.36		0.51		(0.13	)		(0.91	)		(1.04	)		19.71
2014		18.94		0.13		1.86		1.99		(0.09	)		(0.60	)		(0.69	)		20.24
2013		14.88		0.13		4.54		4.67		(0.12	)		(0.49	)		(0.61	)		18.94
2012		14.01		0.09		1.39		1.48		(0.07	)		(0.54	)		(0.61	)		14.88
R-4 shares
2016		19.77		0.23		0.76		0.99		(0.17	)		(1.19	)		(1.36	)		19.40
2015		20.29		0.19		0.36		0.55		(0.16	)		(0.91	)		(1.07	)		19.77
2014		19.00		0.17		1.86		2.03		(0.14	)		(0.60	)		(0.74	)		20.29
2013		14.93		0.16		4.55		4.71		(0.15	)		(0.49	)		(0.64	)		19.00
2012		14.04		0.12		1.40		1.52		(0.09	)		(0.54	)		(0.63	)		14.93
R-5 shares
2016		19.93		0.26		0.75		1.01		(0.19	)		(1.19	)		(1.38	)		19.56
2015		20.44		0.21		0.38		0.59		(0.19	)		(0.91	)		(1.10	)		19.93
2014		19.13		0.19		1.87		2.06		(0.15	)		(0.60	)		(0.75	)		20.44
2013		15.02		0.19		4.57		4.76		(0.16	)		(0.49	)		(0.65	)		19.13
2012		14.12		0.14		1.40		1.54		(0.10	)		(0.54	)		(0.64	)		15.02


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


5.63%	(c)	$	105,731	0.50	%	0.53	%	1.27	%	17.6	%
2.84	(c)		93,241	0.54		0.59		0.93		19.8
10.96	(c)		88,285	0.60		0.64		0.79		13.9
32.57	(c)		73,163	0.65		0.85		0.86		11.2
11.31	(c)		47,839	0.66		0.85		0.72		14.5

5.96			666,562	0.20		0.20		1.57		17.6
3.20			621,745	0.19		0.19		1.26		19.8
11.44			534,362	0.20		0.20		1.19		13.9
33.09			402,962	0.21		0.21		1.30		11.2
11.86			250,683	0.20		0.24		1.18		14.5

5.11			12,290	1.04		–		0.74		17.6
2.30			19,225	1.04		–		0.42		19.8
10.48			20,397	1.04		–		0.35		13.9
32.08			12,674	1.04		–		0.50		11.2
10.92			9,930	1.04		–		0.34		14.5

5.25			15,930	0.91		–		0.86		17.6
2.43			17,423	0.91		–		0.56		19.8
10.61			21,010	0.91		–		0.49		13.9
32.24			20,660	0.91		–		0.62		11.2
11.08			17,916	0.91		–		0.47		14.5

5.41			104,741	0.73		–		1.05		17.6
2.64			114,367	0.73		–		0.74		19.8
10.82			124,106	0.73		–		0.67		13.9
32.42			133,208	0.73		–		0.79		11.2
11.31			83,360	0.73		–		0.64		14.5

5.63			104,499	0.54		–		1.23		17.6
2.86			119,042	0.54		–		0.92		19.8
11.02			110,658	0.54		–		0.85		13.9
32.66			89,068	0.54		–		0.97		11.2
11.54			53,385	0.54		–		0.84		14.5

5.71			196,677	0.42		–		1.35		17.6
3.02			199,225	0.42		–		1.05		19.8
11.11			215,084	0.42		–		0.98		13.9
32.85			181,266	0.42		–		1.09		11.2
11.62			113,313	0.42		–		0.96		14.5


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized						Dividends			Distributions			Total
		Value,		Investment			and Unrealized		Total From				from Net			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments			Operations			Income			Gains			Distributions			of Period
MIDCAP VALUE FUND I
Class J shares
2016	$	14.10	$	0.14		$	0.12		$	0.26		($	0.05	)	($	1.29	)	($	1.34	)	$	13.02
2015		16.34		0.04			(0.17	)		(0.13	)		(0.03	)		(2.08	)		(2.11	)		14.10
2014		18.32		0.03			2.17			2.20			(0.04	)		(4.14	)		(4.18	)		16.34
2013		14.03		0.07			4.33			4.40			(0.11	)		–			(0.11	)		18.32
2012		12.47		0.07			1.51			1.58			(0.02	)		–			(0.02	)		14.03
Institutional shares
2016		14.26		0.18			0.11			0.29			(0.10	)		(1.29	)		(1.39	)		13.16
2015		16.49		0.10			(0.17	)		(0.07	)		(0.08	)		(2.08	)		(2.16	)		14.26
2014		18.45		0.10			2.18			2.28			(0.10	)		(4.14	)		(4.24	)		16.49
2013		14.14		0.15			4.34			4.49			(0.18	)		–			(0.18	)		18.45
2012		12.57		0.15			1.51			1.66			(0.09	)		–			(0.09	)		14.14
R-1 shares
2016		13.72		0.06			0.12			0.18			–			(1.29	)		(1.29	)		12.61
2015		16.00		(0.03	)		(0.17	)		(0.20	)		–			(2.08	)		(2.08	)		13.72
2014		18.05		(0.04	)		2.13			2.09			–			(4.14	)		(4.14	)		16.00
2013		13.83		–			4.27			4.27			(0.05	)		–			(0.05	)		18.05
2012		12.32		0.03			1.48			1.51			–			–			–			13.83
R-2 shares
2016		13.82		0.08			0.12			0.20			–			(1.29	)		(1.29	)		12.73
2015		16.08		(0.01	)		(0.17	)		(0.18	)		–			(2.08	)		(2.08	)		13.82
2014		18.10		(0.02	)		2.14			2.12			–			(4.14	)		(4.14	)		16.08
2013		13.87		0.02			4.28			4.30			(0.07	)		–			(0.07	)		18.10
2012		12.34		0.05			1.48			1.53			–			–			–			13.87
R-3 shares
2016		14.03		0.11			0.11			0.22			(0.02	)		(1.29	)		(1.31	)		12.94
2015		16.26		0.01			(0.16	)		(0.15	)		–			(2.08	)		(2.08	)		14.03
2014		18.25		0.01			2.16			2.17			(0.02	)		(4.14	)		(4.16	)		16.26
2013		13.99		0.05			4.31			4.36			(0.10	)		–			(0.10	)		18.25
2012		12.43		0.07			1.50			1.57			(0.01	)		–			(0.01	)		13.99
R-4 shares
2016		14.07		0.13			0.13			0.26			(0.05	)		(1.29	)		(1.34	)		12.99
2015		16.31		0.04			(0.17	)		(0.13	)		(0.03	)		(2.08	)		(2.11	)		14.07
2014		18.30		0.04			2.16			2.20			(0.05	)		(4.14	)		(4.19	)		16.31
2013		14.03		0.08			4.32			4.40			(0.13	)		–			(0.13	)		18.30
2012		12.46		0.09			1.52			1.61			(0.04	)		–			(0.04	)		14.03
R-5 shares
2016		14.15		0.15			0.11			0.26			(0.06	)		(1.29	)		(1.35	)		13.06
2015		16.39		0.06			(0.17	)		(0.11	)		(0.05	)		(2.08	)		(2.13	)		14.15
2014		18.36		0.06			2.17			2.23			(0.06	)		(4.14	)		(4.20	)		16.39
2013		14.08		0.10			4.33			4.43			(0.15	)		–			(0.15	)		18.36
2012		12.52		0.11			1.51			1.62			(0.06	)		–			(0.06	)		14.08


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.37%(c),(d)		$	65,870	1.23	%	1.35	%	1.07	%	131.3	%
(0.96) (c),(d)			70,488	1.31		1.40		0.27		106.6
14.64	(c)		77,754	1.36		1.46		0.17		85.3
31.54	(c)		65,896	1.43		1.65		0.42		98.6
12.66	(c)		52,378	1.51		1.72		0.56		87.3

2.69			944,079	0.94	(e)	–		1.43		131.3
(0.59	)		1,518,632	0.94	(e)	–		0.64		106.6
15.07			1,377,675	0.94	(e)	–		0.59		85.3
32.12			1,279,003	0.98	(e)	–		0.93		98.6
13.28			1,431,810	0.98	(e)	–		1.09		87.3

1.78	(d)		4,475	1.79	(e)	–		0.52		131.3
(1.45	) (d)		5,378	1.80	(e)	–		(0.21	)	106.6
14.13			6,852	1.80	(e)	–		(0.27	)	85.3
30.99			6,643	1.84	(e)	–		0.00		98.6
12.26			6,229	1.85	(e)	–		0.22		87.3

2.00			5,592	1.66	(e)	–		0.65		131.3
(1.37	)		9,423	1.67	(e)	–		(0.08	)	106.6
14.30			12,046	1.67	(e)	–		(0.13	)	85.3
31.14			15,229	1.71	(e)	–		0.16		98.6
12.40			14,689	1.72	(e)	–		0.35		87.3

2.13			20,452	1.48	(e)	–		0.87		131.3
(1.15	)		29,970	1.49	(e)	–		0.10		106.6
14.49			37,981	1.49	(e)	–		0.05		85.3
31.32			39,275	1.53	(e)	–		0.31		98.6
12.66			32,137	1.54	(e)	–		0.53		87.3

2.35	(d)		20,414	1.29	(e)	–		1.03		131.3
(0.92	) (d)		27,448	1.30	(e)	–		0.30		106.6
14.66			36,994	1.30	(e)	–		0.24		85.3
31.60			35,447	1.34	(e)	–		0.50		98.6
12.92			27,235	1.35	(e)	–		0.71		87.3

2.49			50,945	1.17	(e)	–		1.15		131.3
(0.89	)		66,454	1.18	(e)	–		0.41		106.6
14.86			83,762	1.18	(e)	–		0.35		85.3
31.77			68,821	1.22	(e)	–		0.64		98.6
12.98			57,052	1.23	(e)	–		0.85		87.3


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

			Net Asset		Net		Net Realized and						Dividends			Distributions			Total
			Value,		Investment		Unrealized Gain		Total From				from Net			from			Dividends			Net Asset
			Beginning		Income		(Loss) on			Investment			Investment			Realized			and			Value, End
			of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
MIDCAP VALUE FUND III
Class J shares
2016		$	18.07	$	0.25	($	0.22	)	$	0.03		($	0.17	)	($	0.46	)	($	0.63	)	$	17.47
2015			19.52		0.18		0.03			0.21			(0.17	)		(1.49	)		(1.66	)		18.07
2014			17.94		0.17		2.09			2.26			(0.15	)		(0.53	)		(0.68	)		19.52
2013			13.60		0.17		4.33			4.50			(0.16	)		–			(0.16	)		17.94
2012			11.97		0.15		1.59			1.74			(0.11	)		–			(0.11	)		13.60
Institutional shares
2016			19.16		0.31		(0.24	)		0.07			(0.23	)		(0.46	)		(0.69	)		18.54
2015			20.60		0.25		0.04			0.29			(0.24	)		(1.49	)		(1.73	)		19.16
2014			18.88		0.26		2.20			2.46			(0.21	)		(0.53	)		(0.74	)		20.60
2013			14.31		0.24		4.55			4.79			(0.22	)		–			(0.22	)		18.88
2012			12.59		0.23		1.66			1.89			(0.17	)		–			(0.17	)		14.31
R-1 shares
2016			18.14		0.15		(0.23	)		(0.08	)		(0.10	)		(0.46	)		(0.56	)		17.50
2015			19.65		0.07		0.05			0.12			(0.14	)		(1.49	)		(1.63	)		18.14
2014			18.07		0.08		2.11			2.19			(0.08	)		(0.53	)		(0.61	)		19.65
2013			13.69		0.10		4.36			4.46			(0.08	)		–			(0.08	)		18.07
2012			12.03		0.10		1.60			1.70			(0.04	)		–			(0.04	)		13.69
R-2 shares
2016			18.27		0.17		(0.22	)		(0.05	)		(0.11	)		(0.46	)		(0.57	)		17.65
2015			19.76		0.10		0.03			0.13			(0.13	)		(1.49	)		(1.62	)		18.27
2014			18.18		0.10		2.12			2.22			(0.11	)		(0.53	)		(0.64	)		19.76
2013			13.79		0.12		4.39			4.51			(0.12	)		–			(0.12	)		18.18
2012			12.11		0.12		1.61			1.73			(0.05	)		–			(0.05	)		13.79
R-3 shares
2016			18.16		0.20		(0.22	)		(0.02	)		(0.15	)		(0.46	)		(0.61	)		17.53
2015			19.64		0.13		0.05			0.18			(0.17	)		(1.49	)		(1.66	)		18.16
2014			18.07		0.13		2.11			2.24			(0.14	)		(0.53	)		(0.67	)		19.64
2013			13.73		0.14		4.37			4.51			(0.17	)		–			(0.17	)		18.07
2012			12.08		0.15		1.59			1.74			(0.09	)		–			(0.09	)		13.73
R-4 shares
2016			18.01		0.23		(0.23	)		–			(0.17	)		(0.46	)		(0.63	)		17.38
2015			19.48		0.17		0.04			0.21			(0.19	)		(1.49	)		(1.68	)		18.01
2014			17.92		0.16		2.10			2.26			(0.17	)		(0.53	)		(0.70	)		19.48
2013			13.61		0.17		4.33			4.50			(0.19	)		–			(0.19	)		17.92
2012			11.98		0.17		1.58			1.75			(0.12	)		–			(0.12	)		13.61
R-5 shares
2016			18.18		0.26		(0.23	)		0.03			(0.19	)		(0.46	)		(0.65	)		17.56
2015			19.65		0.19		0.04			0.23			(0.21	)		(1.49	)		(1.70	)		18.18
2014			18.03		0.19		2.12			2.31			(0.16	)		(0.53	)		(0.69	)		19.65
2013			13.70		0.20		4.33			4.53			(0.20	)		–			(0.20	)		18.03
2012			12.05		0.18		1.60			1.78			(0.13	)		–			(0.13	)		13.70
R-6 shares
2016			19.16		0.31		(0.24	)		0.07			(0.23	)		(0.46	)		(0.69	)		18.54
2015	(e)		21.10		0.19		(0.40	)		(0.21	)		(0.24	)		(1.49	)		(1.73	)		19.16


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.29%	(c)	$	95,056	0.91	%	0.95	%	1.47	%	73.7	%
1.13	(c)		104,787	0.98		1.02		0.96		70.9
12.97	(c)		112,480	1.02		1.07		0.93		70.2
33.42	(c)		103,978	1.05		1.27		1.11		88.3
14.65	(c)		82,259	1.16		1.36		1.19		52.9

0.50			1,025,943	0.65		0.66		1.72		73.7
1.46			866,866	0.65		0.66		1.28		70.9
13.44			822,011	0.64		0.65		1.29		70.2
33.96			640,181	0.66		0.67		1.40		88.3
15.18			1,893	0.69		2.25		1.68		52.9

(0.35	)		994	1.51	(d)	–		0.88		73.7
0.60			1,496	1.51	(d)	–		0.39		70.9
12.45			1,046	1.51	(d)	–		0.41		70.2
32.79			452	1.53	(d)	–		0.64		88.3
14.20			318	1.56	(d)	–		0.79		52.9

(0.18	)		1,977	1.38	(d)	–		1.00		73.7
0.68			2,204	1.38	(d)	–		0.55		70.9
12.58			1,663	1.38	(d)	–		0.53		70.2
32.94			1,176	1.40	(d)	–		0.77		88.3
14.38			871	1.43	(d)	–		0.93		52.9

(0.02	)		17,205	1.20	(d)	–		1.17		73.7
0.93			15,024	1.20	(d)	–		0.69		70.9
12.75			9,010	1.20	(d)	–		0.69		70.2
33.18			4,319	1.22	(d)	–		0.90		88.3
14.52			2,188	1.25	(d)	–		1.12		52.9

0.12			20,460	1.01	(d)	–		1.37		73.7
1.13			18,262	1.01	(d)	–		0.89		70.9
12.99			14,160	1.01	(d)	–		0.83		70.2
33.44			4,061	1.03	(d)	–		1.04		88.3
14.72			1,125	1.06	(d)	–		1.30		52.9

0.27			28,552	0.89	(d)	–		1.49		73.7
1.23			27,790	0.89	(d)	–		1.03		70.9
13.19			17,886	0.89	(d)	–		1.03		70.2
33.53			11,095	0.91	(d)	–		1.26		88.3
14.96			6,614	0.94	(d)	–		1.41		52.9

0.49			3,504	0.69	(d)	–		1.69		73.7
(0.94)	(f)		3,846	0.69 (d)	,(g)	–		1.06	(g)	70.9	(g)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

			Net Asset		Net		Net Realized						Dividends			Distributions			Total
			Value,		Investment		and Unrealized			Total From			from Net			from			Dividends			Net Asset
			Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
			of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
OVERSEAS FUND
Institutional shares
2016		$	10.17	$	0.19	($	0.59	)	($	0.40	)	($	0.18	)	($	0.19	)	($	0.37	)	$	9.40
2015			11.51		0.20		(0.73	)		(0.53	)		(0.28	)		(0.53	)		(0.81	)		10.17
2014			12.11		0.25		(0.08	)		0.17			(0.22	)		(0.55	)		(0.77	)		11.51
2013			9.96		0.24		2.13			2.37			(0.22	)		–			(0.22	)		12.11
2012			9.89		0.24		0.47			0.71			(0.23	)		(0.41	)		(0.64	)		9.96
R-1 shares
2016			10.07		0.10		(0.59	)		(0.49	)		(0.09	)		(0.19	)		(0.28	)		9.30
2015			11.40		0.10		(0.72	)		(0.62	)		(0.18	)		(0.53	)		(0.71	)		10.07
2014			12.01		0.15		(0.08	)		0.07			(0.13	)		(0.55	)		(0.68	)		11.40
2013			9.90		0.15		2.11			2.26			(0.15	)		–			(0.15	)		12.01
2012	(c)		9.89		0.15		(0.14	)		0.01			–			–			–			9.90
R-2 shares
2016			10.09		0.12		(0.59	)		(0.47	)		(0.11	)		(0.19	)		(0.30	)		9.32
2015			11.42		0.11		(0.71	)		(0.60	)		(0.20	)		(0.53	)		(0.73	)		10.09
2014			12.02		0.16		(0.07	)		0.09			(0.14	)		(0.55	)		(0.69	)		11.42
2013			9.91		0.16		2.11			2.27			(0.16	)		–			(0.16	)		12.02
2012	(c)		9.89		0.16		(0.14	)		0.02			–			–			–			9.91
R-3 shares
2016			10.08		0.14		(0.59	)		(0.45	)		(0.13	)		(0.19	)		(0.32	)		9.31
2015			11.41		0.13		(0.71	)		(0.58	)		(0.22	)		(0.53	)		(0.75	)		10.08
2014			12.04		0.19		(0.08	)		0.11			(0.19	)		(0.55	)		(0.74	)		11.41
2013			9.92		0.20		2.09			2.29			(0.17	)		–			(0.17	)		12.04
2012	(c)		9.89		0.17		(0.14	)		0.03			–			–			–			9.92
R-4 shares
2016			10.12		0.16		(0.59	)		(0.43	)		(0.15	)		(0.19	)		(0.34	)		9.35
2015			11.45		0.16		(0.72	)		(0.56	)		(0.24	)		(0.53	)		(0.77	)		10.12
2014			12.07		0.21		(0.08	)		0.13			(0.20	)		(0.55	)		(0.75	)		11.45
2013			9.94		0.07		2.25			2.32			(0.19	)		–			(0.19	)		12.07
2012	(c)		9.89		0.18		(0.13	)		0.05			–			–			–			9.94
R-5 shares
2016			10.12		0.17		(0.58	)		(0.41	)		(0.16	)		(0.19	)		(0.35	)		9.36
2015			11.46		0.17		(0.73	)		(0.56	)		(0.25	)		(0.53	)		(0.78	)		10.12
2014			12.06		0.22		(0.07	)		0.15			(0.20	)		(0.55	)		(0.75	)		11.46
2013			9.95		0.21		2.12			2.33			(0.22	)		–			(0.22	)		12.06
2012	(c)		9.89		0.19		(0.13	)		0.06			–			–			–			9.95


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


(3.88	)%	$	3,080,741	1.07	%(b)	2.05	%	31.8	%
(4.66	)		2,654,066	1.06	(b)	1.85		35.8
1.49			2,559,657	1.06	(b)	2.14		34.9
24.16			2,280,703	1.07	(b)	2.25		35.3
8.29			1,707,927	1.08	(b)	2.58		27.9

(4.82	)		21	1.94	(b)	1.05		31.8
(5.49	)		12	1.93	(b)	0.95		35.8
0.63			12	1.93	(b)	1.24		34.9
23.09			12	1.94	(b)	1.35		35.3
0.10	(d)		10	1.94 (b)	,(e)	2.31	(e)	27.9	(e)

(4.63	)		14	1.81	(b)	1.29		31.8
(5.36	)		12	1.80	(b)	1.07		35.8
0.82			12	1.80	(b)	1.37		34.9
23.19			12	1.81	(b)	1.48		35.3
0.20	(d)		10	1.82 (b)	,(e)	2.45	(e)	27.9	(e)

(4.43	)		321	1.63	(b)	1.49		31.8
(5.12	)		281	1.62	(b)	1.25		35.8
0.94			249	1.62	(b)	1.58		34.9
23.42			172	1.63	(b)	1.85		35.3
0.30	(d)		10	1.64 (b)	,(e)	2.61	(e)	27.9	(e)

(4.28	)		546	1.44	(b)	1.71		31.8
(4.98	)		461	1.43	(b)	1.46		35.8
1.15			484	1.43	(b)	1.81		34.9
23.65			469	1.44	(b)	0.61		35.3
0.51	(d)		10	1.45 (b)	,(e)	2.79	(e)	27.9	(e)

(4.15	) (f)		501	1.32	(b)	1.81		31.8
(4.85	) (f)		512	1.31	(b)	1.57		35.8
1.26			554	1.31	(b)	1.87		34.9
23.75			606	1.32	(b)	1.99		35.3
0.61	(d)		10	1.33 (b)	,(e)	2.94	(e)	27.9	(e)


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized				Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments		Operations		Income			Gains			Distributions			of Period
PRINCIPAL CAPITAL APPRECIATION FUND
Institutional shares
2016	$	60.21	$	0.86	$	0.39	$	1.25	($	0.87	)	($	2.35	)	($	3.22	)	$	58.24
2015		59.67		0.86		2.64		3.50		(0.73	)		(2.23	)		(2.96	)		60.21
2014		53.31		0.71		7.41		8.12		(0.61	)		(1.15	)		(1.76	)		59.67
2013		42.34		0.77		11.42		12.19		(0.73	)		(0.49	)		(1.22	)		53.31
2012		38.63		0.56		4.05		4.61		(0.42	)		(0.48	)		(0.90	)		42.34
R-1 shares
2016		59.14		0.37		0.38		0.75		(0.49	)		(2.35	)		(2.84	)		57.05
2015		58.68		0.33		2.60		2.93		(0.24	)		(2.23	)		(2.47	)		59.14
2014		52.40		0.22		7.30		7.52		(0.09	)		(1.15	)		(1.24	)		58.68
2013		41.64		0.38		11.24		11.62		(0.37	)		(0.49	)		(0.86	)		52.40
2012		38.18		0.20		4.01		4.21		(0.27	)		(0.48	)		(0.75	)		41.64
R-2 shares
2016		59.28		0.43		0.40		0.83		(0.52	)		(2.35	)		(2.87	)		57.24
2015		58.79		0.41		2.59		3.00		(0.28	)		(2.23	)		(2.51	)		59.28
2014		52.56		0.29		7.32		7.61		(0.23	)		(1.15	)		(1.38	)		58.79
2013		41.78		0.41		11.30		11.71		(0.44	)		(0.49	)		(0.93	)		52.56
2012		38.26		0.26		4.00		4.26		(0.26	)		(0.48	)		(0.74	)		41.78
R-3 shares
2016		59.22		0.53		0.40		0.93		(0.58	)		(2.35	)		(2.93	)		57.22
2015		58.78		0.52		2.59		3.11		(0.44	)		(2.23	)		(2.67	)		59.22
2014		52.58		0.38		7.32		7.70		(0.35	)		(1.15	)		(1.50	)		58.78
2013		41.85		0.46		11.33		11.79		(0.57	)		(0.49	)		(1.06	)		52.58
2012		38.31		0.33		4.01		4.34		(0.32	)		(0.48	)		(0.80	)		41.85
R-4 shares
2016		59.66		0.65		0.40		1.05		(0.67	)		(2.35	)		(3.02	)		57.69
2015		59.17		0.63		2.62		3.25		(0.53	)		(2.23	)		(2.76	)		59.66
2014		52.91		0.50		7.35		7.85		(0.44	)		(1.15	)		(1.59	)		59.17
2013		42.05		0.58		11.37		11.95		(0.60	)		(0.49	)		(1.09	)		52.91
2012		38.42		0.40		4.03		4.43		(0.32	)		(0.48	)		(0.80	)		42.05
R-5 shares
2016		59.86		0.72		0.39		1.11		(0.75	)		(2.35	)		(3.10	)		57.87
2015		59.34		0.70		2.63		3.33		(0.58	)		(2.23	)		(2.81	)		59.86
2014		53.06		0.56		7.38		7.94		(0.51	)		(1.15	)		(1.66	)		59.34
2013		42.15		0.64		11.39		12.03		(0.63	)		(0.49	)		(1.12	)		53.06
2012		38.50		0.47		4.01		4.48		(0.35	)		(0.48	)		(0.83	)		42.15


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.27	%	$	1,399,596	0.47	%	1.49	%	34.5	%
6.12			1,501,149	0.46		1.45		14.0
15.62			1,507,343	0.46		1.27		8.3
29.52			1,357,704	0.48		1.63		14.3
12.28			1,053,972	0.50		1.38		8.2

1.38	(b)		2,904	1.33		0.65		34.5
5.21	(b)		4,282	1.33		0.56		14.0
14.60			1,635	1.34		0.39		8.3
28.39			1,424	1.35		0.82		14.3
11.32			1,789	1.37		0.50		8.2

1.54			3,393	1.20		0.76		34.5
5.33			3,797	1.20		0.70		14.0
14.77			2,155	1.21		0.52		8.3
28.56			2,228	1.22		0.88		14.3
11.43			1,800	1.24		0.65		8.2

1.70	(b)		29,886	1.02		0.94		34.5
5.53	(b)		35,202	1.02		0.88		14.0
14.97			24,394	1.03		0.70		8.3
28.79			19,700	1.04		0.97		14.3
11.64			9,790	1.06		0.82		8.2

1.90	(b)		20,833	0.83		1.13		34.5
5.73			23,003	0.83		1.07		14.0
15.17			15,267	0.84		0.90		8.3
29.05			16,588	0.85		1.22		14.3
11.83			9,840	0.87		0.98		8.2

2.03			49,392	0.71		1.25		34.5
5.86			54,410	0.71		1.19		14.0
15.32			36,551	0.72		1.00		8.3
29.20			29,179	0.73		1.35		14.3
11.96			16,559	0.75		1.15		8.2


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From				from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2010 FUND
Class J shares
2016	$	13.44	$	0.22	$	0.15		$	0.37		($	0.21	)	($	0.40	)	($	0.61	)	$	13.20
2015		13.65		0.27		(0.22	)		0.05			(0.26	)		–			(0.26	)		13.44
2014		13.07		0.23		0.58			0.81			(0.23	)		–			(0.23	)		13.65
2013		12.08		0.25		1.00			1.25			(0.26	)		–			(0.26	)		13.07
2012		11.31		0.21		0.81			1.02			(0.25	)		–			(0.25	)		12.08
Institutional shares
2016		13.50		0.25		0.16			0.41			(0.25	)		(0.40	)		(0.65	)		13.26
2015		13.71		0.32		(0.23	)		0.09			(0.30	)		–			(0.30	)		13.50
2014		13.13		0.27		0.58			0.85			(0.27	)		–			(0.27	)		13.71
2013		12.14		0.30		0.99			1.29			(0.30	)		–			(0.30	)		13.13
2012		11.37		0.25		0.81			1.06			(0.29	)		–			(0.29	)		12.14
R-1 shares
2016		13.38		0.15		0.14			0.29			(0.12	)		(0.40	)		(0.52	)		13.15
2015		13.58		0.20		(0.23	)		(0.03	)		(0.17	)		–			(0.17	)		13.38
2014		13.00		0.17		0.55			0.72			(0.14	)		–			(0.14	)		13.58
2013		12.01		0.19		0.98			1.17			(0.18	)		–			(0.18	)		13.00
2012		11.24		0.15		0.80			0.95			(0.18	)		–			(0.18	)		12.01
R-2 shares
2016		13.39		0.15		0.15			0.30			(0.14	)		(0.40	)		(0.54	)		13.15
2015		13.58		0.22		(0.24	)		(0.02	)		(0.17	)		–			(0.17	)		13.39
2014		13.00		0.18		0.56			0.74			(0.16	)		–			(0.16	)		13.58
2013		12.00		0.22		0.97			1.19			(0.19	)		–			(0.19	)		13.00
2012		11.22		0.17		0.80			0.97			(0.19	)		–			(0.19	)		12.00
R-3 shares
2016		13.36		0.18		0.14			0.32			(0.16	)		(0.40	)		(0.56	)		13.12
2015		13.56		0.24		(0.22	)		0.02			(0.22	)		–			(0.22	)		13.36
2014		12.99		0.19		0.57			0.76			(0.19	)		–			(0.19	)		13.56
2013		12.01		0.23		0.98			1.21			(0.23	)		–			(0.23	)		12.99
2012		11.24		0.19		0.79			0.98			(0.21	)		–			(0.21	)		12.01
R-4 shares
2016		13.40		0.21		0.14			0.35			(0.19	)		(0.40	)		(0.59	)		13.16
2015		13.60		0.28		(0.25	)		0.03			(0.23	)		–			(0.23	)		13.40
2014		13.03		0.23		0.56			0.79			(0.22	)		–			(0.22	)		13.60
2013		12.03		0.24		1.00			1.24			(0.24	)		–			(0.24	)		13.03
2012		11.27		0.21		0.79			1.00			(0.24	)		–			(0.24	)		12.03
R-5 shares
2016		13.43		0.22		0.15			0.37			(0.21	)		(0.40	)		(0.61	)		13.19
2015		13.64		0.28		(0.23	)		0.05			(0.26	)		–			(0.26	)		13.43
2014		13.06		0.24		0.57			0.81			(0.23	)		–			(0.23	)		13.64
2013		12.07		0.27		0.99			1.26			(0.27	)		–			(0.27	)		13.06
2012		11.30		0.22		0.81			1.03			(0.26	)		–			(0.26	)		12.07


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.98%	(d)	$	245,736	0.22	%	0.25	%	1.71	%	15.1	%
0.36	(d)		249,105	0.31		0.34		1.99		32.7
6.25	(d)		255,331	0.33		0.37		1.71		24.1
10.51	(d)		235,463	0.34		0.54		2.00		15.2
9.22	(d)		214,077	0.37		0.56		1.82		28.7

3.25			768,118	0.03		–		1.94		15.1
0.65			871,781	0.04		–		2.31		32.7
6.54			1,096,931	0.04		–		2.04		24.1
10.81			1,093,311	0.04		–		2.42		15.2
9.58			1,148,980	0.04		–		2.14		28.7

2.33			7,515	0.91		–		1.19		15.1
(0.23	)		12,141	0.92		–		1.48		32.7
5.61			14,995	0.91		–		1.27		24.1
9.90			18,403	0.91		–		1.53		15.2
8.62			20,503	0.91		–		1.31		28.7

2.37			8,387	0.78		–		1.19		15.1
(0.11	)		12,072	0.79		–		1.63		32.7
5.74			15,736	0.78		–		1.39		24.1
10.09			20,762	0.78		–		1.76		15.2
8.77			25,982	0.78		–		1.48		28.7

2.60			50,539	0.60		–		1.37		15.1
0.12			64,152	0.61		–		1.76		32.7
5.93			74,667	0.60		–		1.47		24.1
10.20			76,245	0.60		–		1.83		15.2
8.94			80,009	0.60		–		1.61		28.7

2.80			29,697	0.41		–		1.61		15.1
0.26			38,245	0.42		–		2.10		32.7
6.10			59,247	0.41		–		1.71		24.1
10.52			68,271	0.41		–		1.94		15.2
9.12			68,441	0.41		–		1.85		28.7

2.95			73,347	0.29		–		1.70		15.1
0.39			90,554	0.30		–		2.06		32.7
6.29			108,094	0.29		–		1.77		24.1
10.59			113,248	0.29		–		2.16		15.2
9.31			114,530	0.29		–		1.90		28.7


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From				from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2015 FUND
Institutional shares
2016	$	10.76	$	0.19	$	0.08		$	0.27		($	0.18	)	($	0.68	)	($	0.86	)	$	10.17
2015		11.31		0.26		(0.18	)		0.08			(0.27	)		(0.36	)		(0.63	)		10.76
2014		11.13		0.22		0.54			0.76			(0.21	)		(0.37	)		(0.58	)		11.31
2013		10.27		0.22		1.09			1.31			(0.23	)		(0.22	)		(0.45	)		11.13
2012		9.70		0.20		0.73			0.93			(0.22	)		(0.14	)		(0.36	)		10.27
R-1 shares
2016		10.47		0.10		0.08			0.18			(0.07	)		(0.68	)		(0.75	)		9.90
2015		11.02		0.19		(0.22	)		(0.03	)		(0.16	)		(0.36	)		(0.52	)		10.47
2014		10.86		0.14		0.51			0.65			(0.12	)		(0.37	)		(0.49	)		11.02
2013		10.03		0.14		1.05			1.19			(0.14	)		(0.22	)		(0.36	)		10.86
2012		9.48		0.12		0.71			0.83			(0.14	)		(0.14	)		(0.28	)		10.03
R-2 shares
2016		10.52		0.12		0.07			0.19			(0.09	)		(0.68	)		(0.77	)		9.94
2015		11.07		0.19		(0.20	)		(0.01	)		(0.18	)		(0.36	)		(0.54	)		10.52
2014		10.90		0.12		0.54			0.66			(0.12	)		(0.37	)		(0.49	)		11.07
2013		10.08		0.16		1.04			1.20			(0.16	)		(0.22	)		(0.38	)		10.90
2012		9.51		0.13		0.72			0.85			(0.14	)		(0.14	)		(0.28	)		10.08
R-3 shares
2016		10.53		0.13		0.08			0.21			(0.12	)		(0.68	)		(0.80	)		9.94
2015		11.09		0.21		(0.20	)		0.01			(0.21	)		(0.36	)		(0.57	)		10.53
2014		10.92		0.15		0.54			0.69			(0.15	)		(0.37	)		(0.52	)		11.09
2013		10.09		0.16		1.07			1.23			(0.18	)		(0.22	)		(0.40	)		10.92
2012		9.54		0.14		0.72			0.86			(0.17	)		(0.14	)		(0.31	)		10.09
R-4 shares
2016		10.60		0.15		0.09			0.24			(0.14	)		(0.68	)		(0.82	)		10.02
2015		11.15		0.23		(0.20	)		0.03			(0.22	)		(0.36	)		(0.58	)		10.60
2014		10.98		0.18		0.53			0.71			(0.17	)		(0.37	)		(0.54	)		11.15
2013		10.15		0.19		1.05			1.24			(0.19	)		(0.22	)		(0.41	)		10.98
2012		9.59		0.18		0.71			0.89			(0.19	)		(0.14	)		(0.33	)		10.15
R-5 shares
2016		10.62		0.16		0.09			0.25			(0.15	)		(0.68	)		(0.83	)		10.04
2015		11.18		0.25		(0.21	)		0.04			(0.24	)		(0.36	)		(0.60	)		10.62
2014		11.01		0.19		0.53			0.72			(0.18	)		(0.37	)		(0.55	)		11.18
2013		10.17		0.19		1.08			1.27			(0.21	)		(0.22	)		(0.43	)		11.01
2012		9.61		0.15		0.75			0.90			(0.20	)		(0.14	)		(0.34	)		10.17


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2020 FUND
Class J shares
2016	$	14.10	$	0.21	$	0.10		$	0.31	($	0.19	)	($	0.90	)	($	1.09	)	$	13.32
2015		14.86		0.35		(0.27	)		0.08		(0.32	)		(0.52	)		(0.84	)		14.10
2014		14.19		0.24		0.82			1.06		(0.24	)		(0.15	)		(0.39	)		14.86
2013		12.55		0.24		1.66			1.90		(0.26	)		–			(0.26	)		14.19
2012		11.59		0.21		0.98			1.19		(0.23	)		–			(0.23	)		12.55
Institutional shares
2016		14.19		0.24		0.10			0.34		(0.23	)		(0.90	)		(1.13	)		13.40
2015		14.94		0.39		(0.26	)		0.13		(0.36	)		(0.52	)		(0.88	)		14.19
2014		14.27		0.29		0.81			1.10		(0.28	)		(0.15	)		(0.43	)		14.94
2013		12.61		0.30		1.66			1.96		(0.30	)		–			(0.30	)		14.27
2012		11.65		0.25		0.98			1.23		(0.27	)		–			(0.27	)		12.61
R-1 shares
2016		14.04		0.13		0.09			0.22		(0.10	)		(0.90	)		(1.00	)		13.26
2015		14.79		0.28		(0.27	)		0.01		(0.24	)		(0.52	)		(0.76	)		14.04
2014		14.12		0.18		0.78			0.96		(0.14	)		(0.15	)		(0.29	)		14.79
2013		12.48		0.19		1.64			1.83		(0.19	)		–			(0.19	)		14.12
2012		11.53		0.14		0.98			1.12		(0.17	)		–			(0.17	)		12.48
R-2 shares
2016		14.02		0.15		0.08			0.23		(0.11	)		(0.90	)		(1.01	)		13.24
2015		14.76		0.30		(0.27	)		0.03		(0.25	)		(0.52	)		(0.77	)		14.02
2014		14.10		0.18		0.80			0.98		(0.17	)		(0.15	)		(0.32	)		14.76
2013		12.47		0.20		1.63			1.83		(0.20	)		–			(0.20	)		14.10
2012		11.50		0.17		0.97			1.14		(0.17	)		–			(0.17	)		12.47
R-3 shares
2016		14.02		0.17		0.10			0.27		(0.15	)		(0.90	)		(1.05	)		13.24
2015		14.78		0.32		(0.28	)		0.04		(0.28	)		(0.52	)		(0.80	)		14.02
2014		14.12		0.20		0.81			1.01		(0.20	)		(0.15	)		(0.35	)		14.78
2013		12.49		0.22		1.64			1.86		(0.23	)		–			(0.23	)		14.12
2012		11.54		0.18		0.97			1.15		(0.20	)		–			(0.20	)		12.49
R-4 shares
2016		14.06		0.19		0.10			0.29		(0.17	)		(0.90	)		(1.07	)		13.28
2015		14.81		0.37		(0.30	)		0.07		(0.30	)		(0.52	)		(0.82	)		14.06
2014		14.15		0.24		0.80			1.04		(0.23	)		(0.15	)		(0.38	)		14.81
2013		12.51		0.23		1.66			1.89		(0.25	)		–			(0.25	)		14.15
2012		11.56		0.21		0.97			1.18		(0.23	)		–			(0.23	)		12.51
R-5 shares
2016		14.10		0.21		0.10			0.31		(0.19	)		(0.90	)		(1.09	)		13.32
2015		14.86		0.36		(0.27	)		0.09		(0.33	)		(0.52	)		(0.85	)		14.10
2014		14.20		0.24		0.81			1.05		(0.24	)		(0.15	)		(0.39	)		14.86
2013		12.55		0.26		1.66			1.92		(0.27	)		–			(0.27	)		14.20
2012		11.60		0.22		0.97			1.19		(0.24	)		–			(0.24	)		12.55


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.53%	(d)	$	900,189	0.20	%	0.23	%	1.64	%	12.0	%
0.59	(d)		900,725	0.31		0.34		2.42		33.5
7.57	(d)		879,358	0.33		0.37		1.65		18.6
15.38	(d)		782,787	0.35		0.55		1.84		25.7
10.49	(d)		655,845	0.37		0.56		1.73		21.9

2.71			3,948,810	0.02		–		1.83		12.0
0.95			4,195,249	0.04		–		2.70		33.5
7.84			4,743,088	0.04		–		1.96		18.6
15.82			4,348,221	0.04		–		2.22		25.7
10.84			3,856,280	0.04		–		2.03		21.9

1.82			40,455	0.90		–		0.99		12.0
0.05			46,993	0.91		–		1.93		33.5
6.91			53,222	0.91		–		1.21		18.6
14.81			57,842	0.91		–		1.43		25.7
9.84			62,546	0.91		–		1.21		21.9

1.92			48,551	0.77		–		1.13		12.0
0.21			57,059	0.78		–		2.11		33.5
7.06			76,267	0.78		–		1.27		18.6
14.87			78,817	0.78		–		1.51		25.7
10.06			77,610	0.78		–		1.40		21.9

2.19			235,954	0.59		–		1.31		12.0
0.30			277,010	0.60		–		2.21		33.5
7.27			316,368	0.60		–		1.40		18.6
15.10			291,200	0.60		–		1.64		25.7
10.19			263,407	0.60		–		1.49		21.9

2.37			182,490	0.40		–		1.48		12.0
0.53			197,589	0.41		–		2.57		33.5
7.46			249,613	0.41		–		1.69		18.6
15.32			263,543	0.41		–		1.74		25.7
10.40			212,684	0.41		–		1.78		21.9

2.50			375,444	0.28		–		1.62		12.0
0.63			433,423	0.29		–		2.48		33.5
7.55			472,434	0.29		–		1.68		18.6
15.54			439,570	0.29		–		1.98		25.7
10.50			384,604	0.29		–		1.83		21.9


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2025 FUND
Institutional shares
2016	$	11.17	$	0.17	$	0.07		$	0.24	($	0.17	)	($	0.73	)	($	0.90	)	$	10.51
2015		11.76		0.29		(0.18	)		0.11		(0.31	)		(0.39	)		(0.70	)		11.17
2014		11.50		0.22		0.70			0.92		(0.22	)		(0.44	)		(0.66	)		11.76
2013		10.22		0.22		1.49			1.71		(0.22	)		(0.21	)		(0.43	)		11.50
2012		9.47		0.19		0.82			1.01		(0.22	)		(0.04	)		(0.26	)		10.22
R-1 shares
2016		10.92		0.09		0.05			0.14		(0.07	)		(0.73	)		(0.80	)		10.26
2015		11.51		0.22		(0.20	)		0.02		(0.22	)		(0.39	)		(0.61	)		10.92
2014		11.28		0.14		0.66			0.80		(0.13	)		(0.44	)		(0.57	)		11.51
2013		10.04		0.14		1.45			1.59		(0.14	)		(0.21	)		(0.35	)		11.28
2012		9.30		0.12		0.80			0.92		(0.14	)		(0.04	)		(0.18	)		10.04
R-2 shares
2016		10.95		0.11		0.04			0.15		(0.09	)		(0.73	)		(0.82	)		10.28
2015		11.53		0.23		(0.20	)		0.03		(0.22	)		(0.39	)		(0.61	)		10.95
2014		11.29		0.13		0.69			0.82		(0.14	)		(0.44	)		(0.58	)		11.53
2013		10.06		0.16		1.44			1.60		(0.16	)		(0.21	)		(0.37	)		11.29
2012		9.32		0.13		0.80			0.93		(0.15	)		(0.04	)		(0.19	)		10.06
R-3 shares
2016		10.97		0.12		0.05			0.17		(0.11	)		(0.73	)		(0.84	)		10.30
2015		11.56		0.24		(0.19	)		0.05		(0.25	)		(0.39	)		(0.64	)		10.97
2014		11.32		0.15		0.69			0.84		(0.16	)		(0.44	)		(0.60	)		11.56
2013		10.08		0.15		1.47			1.62		(0.17	)		(0.21	)		(0.38	)		11.32
2012		9.35		0.13		0.81			0.94		(0.17	)		(0.04	)		(0.21	)		10.08
R-4 shares
2016		11.06		0.13		0.06			0.19		(0.13	)		(0.73	)		(0.86	)		10.39
2015		11.65		0.27		(0.20	)		0.07		(0.27	)		(0.39	)		(0.66	)		11.06
2014		11.40		0.18		0.69			0.87		(0.18	)		(0.44	)		(0.62	)		11.65
2013		10.14		0.18		1.48			1.66		(0.19	)		(0.21	)		(0.40	)		11.40
2012		9.40		0.19		0.77			0.96		(0.18	)		(0.04	)		(0.22	)		10.14
R-5 shares
2016		11.10		0.15		0.06			0.21		(0.14	)		(0.73	)		(0.87	)		10.44
2015		11.69		0.29		(0.21	)		0.08		(0.28	)		(0.39	)		(0.67	)		11.10
2014		11.43		0.20		0.69			0.89		(0.19	)		(0.44	)		(0.63	)		11.69
2013		10.17		0.19		1.48			1.67		(0.20	)		(0.21	)		(0.41	)		11.43
2012		9.43		0.16		0.81			0.97		(0.19	)		(0.04	)		(0.23	)		10.17


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.50	%	$	1,247,487	0.02	%	1.69	%	13.7	%
1.01			1,139,392	0.04		2.60		49.9
8.30			1,366,540	0.04		1.90		15.8
17.40			1,067,809	0.04	(c)	2.03		22.2
10.92			751,118	0.04	(c)	1.95		15.4

1.55			14,810	0.89		0.89		13.7
0.19			16,680	0.91		2.00		49.9
7.31			18,238	0.91		1.25		15.8
16.33			18,515	0.91		1.35		22.2
10.04			16,380	0.92		1.25		15.4

1.68			18,268	0.76		1.06		13.7
0.32			21,044	0.78		2.07		49.9
7.52			21,201	0.78		1.14		15.8
16.41			19,431	0.78		1.49		22.2
10.13			17,174	0.79		1.38		15.4

1.88			172,896	0.58		1.18		13.7
0.49			173,313	0.60		2.18		49.9
7.72			162,213	0.60		1.30		15.8
16.65			127,846	0.60		1.44		22.2
10.28			90,350	0.61		1.37		15.4

2.01			96,203	0.39		1.28		13.7
0.65			80,896	0.41		2.42		49.9
7.94			89,551	0.41		1.56		15.8
16.93			72,332	0.41		1.70		22.2
10.50			51,138	0.42		1.95		15.4

2.23			143,138	0.27		1.44		13.7
0.76			125,570	0.29		2.60		49.9
8.11			143,610	0.29		1.73		15.8
17.04			133,941	0.29		1.79		22.2
10.59			92,048	0.30		1.60		15.4


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2030 FUND
Class J shares
2016	$	14.37	$	0.19	$	0.01		$	0.20	($	0.18	)	($	1.01	)	($	1.19	)	$	13.38
2015		15.17		0.36		(0.23	)		0.13		(0.35	)		(0.58	)		(0.93	)		14.37
2014		14.41		0.23		0.96			1.19		(0.24	)		(0.19	)		(0.43	)		15.17
2013		12.39		0.23		2.03			2.26		(0.24	)		–			(0.24	)		14.41
2012		11.43		0.20		0.98			1.18		(0.22	)		–			(0.22	)		12.39
Institutional shares
2016		14.43		0.22		–			0.22		(0.21	)		(1.01	)		(1.22	)		13.43
2015		15.22		0.40		(0.22	)		0.18		(0.39	)		(0.58	)		(0.97	)		14.43
2014		14.46		0.28		0.95			1.23		(0.28	)		(0.19	)		(0.47	)		15.22
2013		12.44		0.29		2.01			2.30		(0.28	)		–			(0.28	)		14.46
2012		11.47		0.24		0.99			1.23		(0.26	)		–			(0.26	)		12.44
R-1 shares
2016		14.26		0.11		–			0.11		(0.08	)		(1.01	)		(1.09	)		13.28
2015		15.07		0.28		(0.25	)		0.03		(0.26	)		(0.58	)		(0.84	)		14.26
2014		14.31		0.17		0.93			1.10		(0.15	)		(0.19	)		(0.34	)		15.07
2013		12.31		0.19		1.98			2.17		(0.17	)		–			(0.17	)		14.31
2012		11.35		0.14		0.98			1.12		(0.16	)		–			(0.16	)		12.31
R-2 shares
2016		14.29		0.13		–			0.13		(0.10	)		(1.01	)		(1.11	)		13.31
2015		15.08		0.32		(0.26	)		0.06		(0.27	)		(0.58	)		(0.85	)		14.29
2014		14.33		0.19		0.93			1.12		(0.18	)		(0.19	)		(0.37	)		15.08
2013		12.33		0.21		1.97			2.18		(0.18	)		–			(0.18	)		14.33
2012		11.36		0.16		0.98			1.14		(0.17	)		–			(0.17	)		12.33
R-3 shares
2016		14.33		0.15		–			0.15		(0.13	)		(1.01	)		(1.14	)		13.34
2015		15.13		0.34		(0.25	)		0.09		(0.31	)		(0.58	)		(0.89	)		14.33
2014		14.38		0.20		0.95			1.15		(0.21	)		(0.19	)		(0.40	)		15.13
2013		12.37		0.21		2.01			2.22		(0.21	)		–			(0.21	)		14.38
2012		11.41		0.18		0.97			1.15		(0.19	)		–			(0.19	)		12.37
R-4 shares
2016		14.75		0.18		–			0.18		(0.16	)		(1.01	)		(1.17	)		13.76
2015		15.54		0.41		(0.29	)		0.12		(0.33	)		(0.58	)		(0.91	)		14.75
2014		14.76		0.25		0.95			1.20		(0.23	)		(0.19	)		(0.42	)		15.54
2013		12.68		0.23		2.08			2.31		(0.23	)		–			(0.23	)		14.76
2012		11.69		0.21		1.00			1.21		(0.22	)		–			(0.22	)		12.68
R-5 shares
2016		14.39		0.20		(0.01	)		0.19		(0.17	)		(1.01	)		(1.18	)		13.40
2015		15.19		0.37		(0.24	)		0.13		(0.35	)		(0.58	)		(0.93	)		14.39
2014		14.43		0.24		0.96			1.20		(0.25	)		(0.19	)		(0.44	)		15.19
2013		12.41		0.26		2.01			2.27		(0.25	)		–			(0.25	)		14.43
2012		11.45		0.22		0.97			1.19		(0.23	)		–			(0.23	)		12.41


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


1.68%	(d)	$	1,066,715	0.22	%	0.25	%	1.47	%	15.2	%
0.96	(d)		1,046,222	0.32		0.35		2.44		36.0
8.45	(d)		1,001,423	0.34		0.38		1.59		15.3
18.54	(d)		867,848	0.36		0.56		1.76		25.1
10.56	(d)		677,464	0.40		0.59		1.66		20.0

1.88			4,517,455	0.02		–		1.66		15.2
1.32			4,549,028	0.04		–		2.73		36.0
8.74			4,734,382	0.04		–		1.91		15.3
18.85			4,198,702	0.04		–		2.17		25.1
11.03			3,573,298	0.04		–		2.02		20.0

1.03			34,738	0.90		–		0.87		15.2
0.32			41,478	0.91		–		1.94		36.0
7.82			46,220	0.91		–		1.17		15.3
17.83			47,197	0.91		–		1.41		25.1
10.01			53,082	0.91		–		1.22		20.0

1.14			47,988	0.77		–		0.97		15.2
0.52			59,122	0.78		–		2.17		36.0
7.94			72,768	0.78		–		1.28		15.3
17.93			75,964	0.78		–		1.55		25.1
10.17			76,588	0.78		–		1.40		20.0

1.35			233,975	0.59		–		1.13		15.2
0.67			250,480	0.60		–		2.30		36.0
8.14			276,196	0.60		–		1.38		15.3
18.22			263,892	0.60		–		1.59		25.1
10.31			230,818	0.60		–		1.52		20.0

1.50			184,624	0.40		–		1.34		15.2
0.88			200,722	0.41		–		2.72		36.0
8.32			243,720	0.41		–		1.67		15.3
18.50			246,295	0.41		–		1.69		25.1
10.55			197,788	0.41		–		1.77		20.0

1.66			374,343	0.28		–		1.48		15.2
1.00			422,505	0.29		–		2.50		36.0
8.50			441,746	0.29		–		1.65		15.3
18.60			416,542	0.29		–		1.93		25.1
10.65			346,730	0.29		–		1.81		20.0


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2035 FUND
Institutional shares
2016	$	11.52	$	0.16	($	0.05	)	$	0.11	($	0.16	)	($	0.44	)	($	0.60	)	$	11.03
2015		12.14		0.28		(0.12	)		0.16		(0.31	)		(0.47	)		(0.78	)		11.52
2014		11.75		0.21		0.82			1.03		(0.22	)		(0.42	)		(0.64	)		12.14
2013		10.12		0.21		1.82			2.03		(0.22	)		(0.18	)		(0.40	)		11.75
2012		9.33		0.17		0.85			1.02		(0.20	)		(0.03	)		(0.23	)		10.12
R-1 shares
2016		11.29		0.07		(0.06	)		0.01		(0.06	)		(0.44	)		(0.50	)		10.80
2015		11.92		0.23		(0.18	)		0.05		(0.21	)		(0.47	)		(0.68	)		11.29
2014		11.54		0.13		0.78			0.91		(0.11	)		(0.42	)		(0.53	)		11.92
2013		9.95		0.14		1.76			1.90		(0.13	)		(0.18	)		(0.31	)		11.54
2012		9.18		0.10		0.82			0.92		(0.12	)		(0.03	)		(0.15	)		9.95
R-2 shares
2016		11.28		0.09		(0.06	)		0.03		(0.08	)		(0.44	)		(0.52	)		10.79
2015		11.91		0.22		(0.15	)		0.07		(0.23	)		(0.47	)		(0.70	)		11.28
2014		11.54		0.12		0.81			0.93		(0.14	)		(0.42	)		(0.56	)		11.91
2013		9.96		0.14		1.78			1.92		(0.16	)		(0.18	)		(0.34	)		11.54
2012		9.19		0.11		0.82			0.93		(0.13	)		(0.03	)		(0.16	)		9.96
R-3 shares
2016		11.34		0.11		(0.06	)		0.05		(0.10	)		(0.44	)		(0.54	)		10.85
2015		11.97		0.24		(0.15	)		0.09		(0.25	)		(0.47	)		(0.72	)		11.34
2014		11.60		0.14		0.81			0.95		(0.16	)		(0.42	)		(0.58	)		11.97
2013		10.00		0.14		1.81			1.95		(0.17	)		(0.18	)		(0.35	)		11.60
2012		9.23		0.12		0.83			0.95		(0.15	)		(0.03	)		(0.18	)		10.00
R-4 shares
2016		11.41		0.12		(0.05	)		0.07		(0.12	)		(0.44	)		(0.56	)		10.92
2015		12.04		0.28		(0.16	)		0.12		(0.28	)		(0.47	)		(0.75	)		11.41
2014		11.66		0.17		0.81			0.98		(0.18	)		(0.42	)		(0.60	)		12.04
2013		10.05		0.17		1.81			1.98		(0.19	)		(0.18	)		(0.37	)		11.66
2012		9.27		0.16		0.81			0.97		(0.16	)		(0.03	)		(0.19	)		10.05
R-5 shares
2016		11.45		0.13		(0.04	)		0.09		(0.13	)		(0.44	)		(0.57	)		10.97
2015		12.08		0.29		(0.16	)		0.13		(0.29	)		(0.47	)		(0.76	)		11.45
2014		11.69		0.19		0.81			1.00		(0.19	)		(0.42	)		(0.61	)		12.08
2013		10.08		0.18		1.81			1.99		(0.20	)		(0.18	)		(0.38	)		11.69
2012		9.30		0.14		0.85			0.99		(0.18	)		(0.03	)		(0.21	)		10.08


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


1.11	%	$	973,792	0.02	%	1.48	%	15.2	%
1.52			888,781	0.04		2.43		38.8
9.10			961,514	0.04		1.78		13.4
20.69			734,686	0.04	(c)	1.94		22.2
11.23			490,889	0.04	(c)	1.78		13.0

0.21			12,700	0.89		0.65		15.2
0.57			12,831	0.92		1.99		38.8
8.22			14,516	0.91		1.15		13.4
19.61			14,704	0.91		1.28		22.2
10.23			14,603	0.92		1.01		13.0

0.37			13,427	0.76		0.84		15.2
0.70			15,383	0.79		1.92		38.8
8.35			15,138	0.78		0.99		13.4
19.77			11,998	0.78		1.30		22.2
10.30			9,549	0.79		1.10		13.0

0.56			111,881	0.58		1.00		15.2
0.91			117,689	0.61		2.06		38.8
8.51			108,395	0.60		1.23		13.4
20.03			91,530	0.60		1.36		22.2
10.55			62,383	0.61		1.26		13.0

0.71			70,656	0.39		1.08		15.2
1.10			65,678	0.42		2.42		38.8
8.74			70,482	0.41		1.48		13.4
20.25			53,662	0.41		1.61		22.2
10.79			40,305	0.42		1.70		13.0

0.92			107,447	0.27		1.24		15.2
1.21			98,245	0.30		2.47		38.8
8.92			107,166	0.29		1.61		13.4
20.32			95,411	0.29		1.65		22.2
10.90			57,005	0.30		1.45		13.0


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2040 FUND
Class J shares
2016	$	14.78	$	0.18	($	0.09	)	$	0.09	($	0.16	)	($	0.72	)	($	0.88	)	$	13.99
2015		15.61		0.35		(0.19	)		0.16		(0.36	)		(0.63	)		(0.99	)		14.78
2014		14.90		0.22		1.09			1.31		(0.23	)		(0.37	)		(0.60	)		15.61
2013		12.50		0.22		2.41			2.63		(0.23	)		–			(0.23	)		14.90
2012		11.49		0.17		1.04			1.21		(0.20	)		–			(0.20	)		12.50
Institutional shares
2016		14.91		0.21		(0.09	)		0.12		(0.21	)		(0.72	)		(0.93	)		14.10
2015		15.74		0.41		(0.20	)		0.21		(0.41	)		(0.63	)		(1.04	)		14.91
2014		15.02		0.28		1.09			1.37		(0.28	)		(0.37	)		(0.65	)		15.74
2013		12.59		0.28		2.42			2.70		(0.27	)		–			(0.27	)		15.02
2012		11.57		0.22		1.04			1.26		(0.24	)		–			(0.24	)		12.59
R-1 shares
2016		14.71		0.09		(0.09	)		–		(0.07	)		(0.72	)		(0.79	)		13.92
2015		15.54		0.30		(0.22	)		0.08		(0.28	)		(0.63	)		(0.91	)		14.71
2014		14.83		0.16		1.06			1.22		(0.14	)		(0.37	)		(0.51	)		15.54
2013		12.44		0.17		2.38			2.55		(0.16	)		–			(0.16	)		14.83
2012		11.42		0.12		1.04			1.16		(0.14	)		–			(0.14	)		12.44
R-2 shares
2016		14.72		0.11		(0.10	)		0.01		(0.08	)		(0.72	)		(0.80	)		13.93
2015		15.54		0.34		(0.24	)		0.10		(0.29	)		(0.63	)		(0.92	)		14.72
2014		14.84		0.18		1.06			1.24		(0.17	)		(0.37	)		(0.54	)		15.54
2013		12.45		0.19		2.38			2.57		(0.18	)		–			(0.18	)		14.84
2012		11.43		0.14		1.03			1.17		(0.15	)		–			(0.15	)		12.45
R-3 shares
2016		14.71		0.13		(0.10	)		0.03		(0.12	)		(0.72	)		(0.84	)		13.90
2015		15.54		0.33		(0.20	)		0.13		(0.33	)		(0.63	)		(0.96	)		14.71
2014		14.84		0.19		1.08			1.27		(0.20	)		(0.37	)		(0.57	)		15.54
2013		12.45		0.20		2.39			2.59		(0.20	)		–			(0.20	)		14.84
2012		11.44		0.16		1.02			1.18		(0.17	)		–			(0.17	)		12.45
R-4 shares
2016		14.74		0.16		(0.09	)		0.07		(0.15	)		(0.72	)		(0.87	)		13.94
2015		15.57		0.40		(0.25	)		0.15		(0.35	)		(0.63	)		(0.98	)		14.74
2014		14.87		0.24		1.06			1.30		(0.23	)		(0.37	)		(0.60	)		15.57
2013		12.47		0.22		2.41			2.63		(0.23	)		–			(0.23	)		14.87
2012		11.46		0.18		1.03			1.21		(0.20	)		–			(0.20	)		12.47
R-5 shares
2016		14.83		0.18		(0.10	)		0.08		(0.17	)		(0.72	)		(0.89	)		14.02
2015		15.66		0.36		(0.18	)		0.18		(0.38	)		(0.63	)		(1.01	)		14.83
2014		14.95		0.23		1.09			1.32		(0.24	)		(0.37	)		(0.61	)		15.66
2013		12.54		0.25		2.40			2.65		(0.24	)		–			(0.24	)		14.95
2012		11.52		0.19		1.04			1.23		(0.21	)		–			(0.21	)		12.54


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.78%	(d)	$	625,617	0.24	%	0.27	%	1.28	%	17.9	%
1.15	(d)		609,315	0.35		0.38		2.34		25.2
9.04	(d)		569,314	0.38		0.42		1.45		11.5
21.35	(d)		484,414	0.40		0.60		1.63		30.1
10.71	(d)		361,253	0.45		0.64		1.40		12.5

0.94			3,052,072	0.02		–		1.50		17.9
1.47			3,056,094	0.04		–		2.68		25.2
9.38			3,109,551	0.04		–		1.81		11.5
21.87			2,718,326	0.04		–		2.07		30.1
11.18			2,235,924	0.04		–		1.83		12.5

0.08			24,595	0.90		–		0.69		17.9
0.60			28,622	0.91		–		2.00		25.2
8.43			33,659	0.91		–		1.07		11.5
20.71			33,757	0.91		–		1.26		30.1
10.29			37,999	0.91		–		0.98		12.5

0.19			32,821	0.77		–		0.79		17.9
0.73			37,545	0.78		–		2.29		25.2
8.58			51,404	0.78		–		1.20		11.5
20.94			55,940	0.78		–		1.40		30.1
10.36			47,947	0.78		–		1.17		12.5

0.36			146,325	0.59		–		0.98		17.9
0.92			158,468	0.60		–		2.24		25.2
8.78			169,617	0.60		–		1.26		11.5
21.11			151,677	0.60		–		1.50		30.1
10.54			132,770	0.60		–		1.36		12.5

0.62			127,949	0.40		–		1.17		17.9
1.07			134,693	0.41		–		2.64		25.2
8.97			153,985	0.41		–		1.56		11.5
21.39			153,849	0.41		–		1.59		30.1
10.76			123,706	0.41		–		1.53		12.5

0.66			261,210	0.28		–		1.32		17.9
1.23			295,602	0.29		–		2.39		25.2
9.11			292,483	0.29		–		1.52		11.5
21.50			260,420	0.29		–		1.84		30.1
10.93			204,880	0.29		–		1.63		12.5


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From			from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2045 FUND
Institutional shares
2016	$	11.76	$	0.16	($	0.07	)	$	0.09		($	0.16	)	($	0.44	)	($	0.60	)	$	11.25
2015		12.39		0.29		(0.12	)		0.17			(0.33	)		(0.47	)		(0.80	)		11.76
2014		11.90		0.21		0.89			1.10			(0.22	)		(0.39	)		(0.61	)		12.39
2013		10.06		0.20		2.00			2.20			(0.21	)		(0.15	)		(0.36	)		11.90
2012		9.26		0.16		0.85			1.01			(0.18	)		(0.03	)		(0.21	)		10.06
R-1 shares
2016		11.42		0.07		(0.09	)		(0.02	)		(0.05	)		(0.44	)		(0.49	)		10.91
2015		12.06		0.26		(0.19	)		0.07			(0.24	)		(0.47	)		(0.71	)		11.42
2014		11.59		0.13		0.84			0.97			(0.11	)		(0.39	)		(0.50	)		12.06
2013		9.82		0.14		1.92			2.06			(0.14	)		(0.15	)		(0.29	)		11.59
2012		9.04		0.08		0.84			0.92			(0.11	)		(0.03	)		(0.14	)		9.82
R-2 shares
2016		11.42		0.09		(0.09	)		–			(0.08	)		(0.44	)		(0.52	)		10.90
2015		12.06		0.22		(0.14	)		0.08			(0.25	)		(0.47	)		(0.72	)		11.42
2014		11.61		0.12		0.86			0.98			(0.14	)		(0.39	)		(0.53	)		12.06
2013		9.84		0.14		1.94			2.08			(0.16	)		(0.15	)		(0.31	)		11.61
2012		9.06		0.08		0.85			0.93			(0.12	)		(0.03	)		(0.15	)		9.84
R-3 shares
2016		11.51		0.10		(0.08	)		0.02			(0.10	)		(0.44	)		(0.54	)		10.99
2015		12.14		0.24		(0.13	)		0.11			(0.27	)		(0.47	)		(0.74	)		11.51
2014		11.68		0.14		0.87			1.01			(0.16	)		(0.39	)		(0.55	)		12.14
2013		9.89		0.14		1.96			2.10			(0.16	)		(0.15	)		(0.31	)		11.68
2012		9.11		0.12		0.83			0.95			(0.14	)		(0.03	)		(0.17	)		9.89
R-4 shares
2016		11.59		0.11		(0.07	)		0.04			(0.12	)		(0.44	)		(0.56	)		11.07
2015		12.22		0.30		(0.17	)		0.13			(0.29	)		(0.47	)		(0.76	)		11.59
2014		11.74		0.17		0.87			1.04			(0.17	)		(0.39	)		(0.56	)		12.22
2013		9.94		0.18		1.96			2.14			(0.19	)		(0.15	)		(0.34	)		11.74
2012		9.15		0.11		0.86			0.97			(0.15	)		(0.03	)		(0.18	)		9.94
R-5 shares
2016		11.61		0.13		(0.08	)		0.05			(0.13	)		(0.44	)		(0.57	)		11.09
2015		12.24		0.30		(0.16	)		0.14			(0.30	)		(0.47	)		(0.77	)		11.61
2014		11.77		0.18		0.88			1.06			(0.20	)		(0.39	)		(0.59	)		12.24
2013		9.97		0.16		1.98			2.14			(0.19	)		(0.15	)		(0.34	)		11.77
2012		9.17		0.13		0.86			0.99			(0.16	)		(0.03	)		(0.19	)		9.97


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From				from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2050 FUND
Class J shares
2016	$	14.10	$	0.15	($	0.11	)	$	0.04		($	0.14	)	($	0.62	)	($	0.76	)	$	13.38
2015		14.91		0.31		(0.16	)		0.15			(0.35	)		(0.61	)		(0.96	)		14.10
2014		14.25		0.18		1.10			1.28			(0.21	)		(0.41	)		(0.62	)		14.91
2013		11.81		0.20		2.45			2.65			(0.21	)		–			(0.21	)		14.25
2012		10.82		0.13		1.02			1.15			(0.16	)		–			(0.16	)		11.81
Institutional shares
2016		14.47		0.19		(0.11	)		0.08			(0.19	)		(0.62	)		(0.81	)		13.74
2015		15.27		0.39		(0.17	)		0.22			(0.41	)		(0.61	)		(1.02	)		14.47
2014		14.57		0.26		1.12			1.38			(0.27	)		(0.41	)		(0.68	)		15.27
2013		12.07		0.27		2.49			2.76			(0.26	)		–			(0.26	)		14.57
2012		11.05		0.20		1.04			1.24			(0.22	)		–			(0.22	)		12.07
R-1 shares
2016		14.27		0.08		(0.11	)		(0.03	)		(0.07	)		(0.62	)		(0.69	)		13.55
2015		15.08		0.28		(0.19	)		0.09			(0.29	)		(0.61	)		(0.90	)		14.27
2014		14.39		0.15		1.09			1.24			(0.14	)		(0.41	)		(0.55	)		15.08
2013		11.92		0.16		2.46			2.62			(0.15	)		–			(0.15	)		14.39
2012		10.91		0.10		1.03			1.13			(0.12	)		–			(0.12	)		11.92
R-2 shares
2016		14.27		0.10		(0.12	)		(0.02	)		(0.08	)		(0.62	)		(0.70	)		13.55
2015		15.07		0.36		(0.25	)		0.11			(0.30	)		(0.61	)		(0.91	)		14.27
2014		14.40		0.16		1.09			1.25			(0.17	)		(0.41	)		(0.58	)		15.07
2013		11.94		0.18		2.46			2.64			(0.18	)		–			(0.18	)		14.40
2012		10.92		0.12		1.03			1.15			(0.13	)		–			(0.13	)		11.94
R-3 shares
2016		14.30		0.12		(0.12	)		–			(0.12	)		(0.62	)		(0.74	)		13.56
2015		15.10		0.33		(0.19	)		0.14			(0.33	)		(0.61	)		(0.94	)		14.30
2014		14.42		0.17		1.12			1.29			(0.20	)		(0.41	)		(0.61	)		15.10
2013		11.95		0.19		2.47			2.66			(0.19	)		–			(0.19	)		14.42
2012		10.95		0.14		1.01			1.15			(0.15	)		–			(0.15	)		11.95
R-4 shares
2016		14.37		0.15		(0.12	)		0.03			(0.14	)		(0.62	)		(0.76	)		13.64
2015		15.16		0.40		(0.23	)		0.17			(0.35	)		(0.61	)		(0.96	)		14.37
2014		14.48		0.22		1.09			1.31			(0.22	)		(0.41	)		(0.63	)		15.16
2013		11.99		0.21		2.50			2.71			(0.22	)		–			(0.22	)		14.48
2012		10.99		0.15		1.03			1.18			(0.18	)		–			(0.18	)		11.99
R-5 shares
2016		14.40		0.17		(0.13	)		0.04			(0.15	)		(0.62	)		(0.77	)		13.67
2015		15.20		0.35		(0.16	)		0.19			(0.38	)		(0.61	)		(0.99	)		14.40
2014		14.51		0.22		1.12			1.34			(0.24	)		(0.41	)		(0.65	)		15.20
2013		12.03		0.23		2.48			2.71			(0.23	)		–			(0.23	)		14.51
2012		11.01		0.17		1.04			1.21			(0.19	)		–			(0.19	)		12.03


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.41%	(d)	$	194,644	0.36	%	0.39	%	1.11	%	17.0	%
1.12	(d)		183,490	0.47		0.50		2.19		21.6
9.30	(d)		159,787	0.49		0.53		1.27		9.9
22.73	(d)		124,651	0.51		0.71		1.51		29.5
10.84	(d)		88,494	0.56		0.76		1.16		10.5

0.72			1,769,456	0.03		–		1.42		17.0
1.57			1,671,172	0.04		–		2.67		21.6
9.80			1,603,984	0.04		–		1.78		9.9
23.28			1,370,372	0.04		–		2.01		29.5
11.45			1,031,138	0.04		–		1.72		10.5

(0.12	)		16,051	0.90		–		0.62		17.0
0.68			17,417	0.92		–		1.91		21.6
8.87			18,098	0.91		–		1.00		9.9
22.20			16,286	0.91		–		1.19		29.5
10.49			17,885	0.91		–		0.84		10.5

(0.07	)		21,050	0.77		–		0.73		17.0
0.82			23,189	0.79		–		2.51		21.6
8.98			31,670	0.78		–		1.09		9.9
22.39			29,353	0.78		–		1.35		29.5
10.64			21,922	0.78		–		1.04		10.5

0.09			77,168	0.59		–		0.90		17.0
1.03			76,536	0.61		–		2.26		21.6
9.20			78,959	0.60		–		1.19		9.9
22.59			68,416	0.60		–		1.43		29.5
10.73			52,457	0.60		–		1.26		10.5

0.35			64,127	0.40		–		1.11		17.0
1.22			66,438	0.42		–		2.74		21.6
9.33			73,607	0.41		–		1.53		9.9
22.93			69,616	0.41		–		1.60		29.5
10.91			57,975	0.41		–		1.30		10.5

0.45			155,397	0.28		–		1.25		17.0
1.35			170,071	0.30		–		2.38		21.6
9.54			163,844	0.29		–		1.47		9.9
22.91			133,924	0.29		–		1.76		29.5
11.19			90,201	0.29		–		1.48		10.5


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From			from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2055 FUND
Institutional shares
2016	$	12.04	$	0.15	($	0.09	)	$	0.06		($	0.16	)	($	0.35	)	($	0.51	)	$	11.59
2015		12.56		0.28		(0.09	)		0.19			(0.33	)		(0.38	)		(0.71	)		12.04
2014		11.98		0.19		0.94			1.13			(0.21	)		(0.34	)		(0.55	)		12.56
2013		10.02		0.19		2.09			2.28			(0.21	)		(0.11	)		(0.32	)		11.98
2012		9.22		0.14		0.87			1.01			(0.17	)		(0.04	)		(0.21	)		10.02
R-1 shares
2016		11.66		0.05		(0.09	)		(0.04	)		(0.06	)		(0.35	)		(0.41	)		11.21
2015		12.20		0.21		(0.12	)		0.09			(0.25	)		(0.38	)		(0.63	)		11.66
2014		11.66		0.11		0.89			1.00			(0.12	)		(0.34	)		(0.46	)		12.20
2013		9.78		0.13		2.00			2.13			(0.14	)		(0.11	)		(0.25	)		11.66
2012		9.01		0.07		0.85			0.92			(0.11	)		(0.04	)		(0.15	)		9.78
R-2 shares
2016		11.70		0.07		(0.10	)		(0.03	)		(0.08	)		(0.35	)		(0.43	)		11.24
2015		12.23		0.19		(0.08	)		0.11			(0.26	)		(0.38	)		(0.64	)		11.70
2014		11.70		0.09		0.92			1.01			(0.14	)		(0.34	)		(0.48	)		12.23
2013		9.81		0.13		2.03			2.16			(0.16	)		(0.11	)		(0.27	)		11.70
2012		9.02		0.06		0.87			0.93			(0.10	)		(0.04	)		(0.14	)		9.81
R-3 shares
2016		11.77		0.09		(0.09	)		–			(0.10	)		(0.35	)		(0.45	)		11.32
2015		12.31		0.22		(0.10	)		0.12			(0.28	)		(0.38	)		(0.66	)		11.77
2014		11.77		0.12		0.92			1.04			(0.16	)		(0.34	)		(0.50	)		12.31
2013		9.86		0.12		2.07			2.19			(0.17	)		(0.11	)		(0.28	)		11.77
2012		9.08		0.08		0.87			0.95			(0.13	)		(0.04	)		(0.17	)		9.86
R-4 shares
2016		11.85		0.10		(0.08	)		0.02			(0.12	)		(0.35	)		(0.47	)		11.40
2015		12.39		0.29		(0.15	)		0.14			(0.30	)		(0.38	)		(0.68	)		11.85
2014		11.83		0.15		0.93			1.08			(0.18	)		(0.34	)		(0.52	)		12.39
2013		9.91		0.15		2.06			2.21			(0.18	)		(0.11	)		(0.29	)		11.83
2012		9.12		0.11		0.86			0.97			(0.14	)		(0.04	)		(0.18	)		9.91
R-5 shares
2016		11.89		0.11		(0.07	)		0.04			(0.13	)		(0.35	)		(0.48	)		11.45
2015		12.42		0.28		(0.12	)		0.16			(0.31	)		(0.38	)		(0.69	)		11.89
2014		11.86		0.16		0.93			1.09			(0.19	)		(0.34	)		(0.53	)		12.42
2013		9.93		0.15		2.08			2.23			(0.19	)		(0.11	)		(0.30	)		11.86
2012		9.15		0.10		0.87			0.97			(0.15	)		(0.04	)		(0.19	)		9.93


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.61	%	$	234,603	0.04	%	1.29	%	11.5	%
1.63			169,883	0.07	(c)	2.32		22.4
9.78			127,374	0.07	(c)	1.60		8.6
23.32			84,497	0.09	(c)	1.77		29.1
11.27			47,528	0.08	(c)	1.46		15.1

(0.20	)		2,723	0.90	(c)	0.43		11.5
0.75			2,254	0.93	(c)	1.74		22.4
8.87			1,861	0.93	(c)	0.94		8.6
22.21			1,453	0.93	(c)	1.21		29.1
10.36			1,148	0.94	(c)	0.79		15.1

(0.10	)		2,743	0.77	(c)	0.62		11.5
0.95			2,398	0.80	(c)	1.64		22.4
8.92			1,751	0.80	(c)	0.75		8.6
22.47			1,142	0.80	(c)	1.26		29.1
10.43			715	0.81	(c)	0.59		15.1

0.16			21,628	0.59	(c)	0.79		11.5
1.01			16,439	0.62	(c)	1.81		22.4
9.18			11,168	0.62	(c)	1.04		8.6
22.65			7,790	0.62	(c)	1.13		29.1
10.69			3,765	0.63	(c)	0.83		15.1

0.28			15,452	0.40	(c)	0.89		11.5
1.18			11,748	0.43	(c)	2.38		22.4
9.44			10,401	0.43	(c)	1.27		8.6
22.84			6,590	0.43	(c)	1.37		29.1
10.89			3,511	0.44	(c)	1.18		15.1

0.44			28,139	0.28	(c)	1.02		11.5
1.37			19,662	0.31	(c)	2.31		22.4
9.54			18,911	0.31	(c)	1.29		8.6
23.01			11,694	0.31	(c)	1.36		29.1
10.91			4,519	0.32	(c)	1.07		15.1


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

			Net Asset		Net			Net Realized						Dividends			Distributions			Total
			Value,		Investment			and Unrealized			Total From			from Net			from			Dividends			Net Asset
			Beginning		Income			Gain (Loss) on			Investment			Investment			Realized			and			Value, End
			of Period		(Loss)(a)			Investments			Operations			Income			Gains			Distributions			of Period
PRINCIPAL LIFETIME 2060 FUND
Class J shares
2016		$	12.19	$	0.12		($	0.09	)	$	0.03		($	0.13	)	($	0.23	)	($	0.36	)	$	11.86
2015			12.36		0.20			(0.06	)		0.14			(0.30	)		(0.01	)		(0.31	)		12.19
2014			11.50		0.10			0.97			1.07			(0.19	)		(0.02	)		(0.21	)		12.36
2013	(e)		10.00		–			1.50			1.50			–			–			–			11.50
Institutional shares
2016			12.26		0.15			(0.09	)		0.06			(0.16	)		(0.23	)		(0.39	)		11.93
2015			12.41		0.23			(0.05	)		0.18			(0.32	)		(0.01	)		(0.33	)		12.26
2014			11.52		0.03			1.08			1.11			(0.20	)		(0.02	)		(0.22	)		12.41
2013	(e)		10.00		0.02			1.50			1.52			–			–			–			11.52
R-1 shares
2016			12.03		0.02			(0.06	)		(0.04	)		(0.09	)		(0.23	)		(0.32	)		11.67
2015			12.23		0.10			(0.02	)		0.08			(0.27	)		(0.01	)		(0.28	)		12.03
2014			11.45		(0.05	)		1.05			1.00			(0.20	)		(0.02	)		(0.22	)		12.23
2013	(e)		10.00		(0.04	)		1.49			1.45			–			–			–			11.45
R-2 shares
2016			12.06		0.06			(0.08	)		(0.02	)		(0.09	)		(0.23	)		(0.32	)		11.72
2015			12.26		0.14			(0.05	)		0.09			(0.28	)		(0.01	)		(0.29	)		12.06
2014			11.46		(0.04	)		1.06			1.02			(0.20	)		(0.02	)		(0.22	)		12.26
2013	(e)		10.00		(0.03	)		1.49			1.46			–			–			–			11.46
R-3 shares
2016			12.15		0.09			(0.08	)		0.01			(0.11	)		(0.23	)		(0.34	)		11.82
2015			12.33		0.18			(0.06	)		0.12			(0.29	)		(0.01	)		(0.30	)		12.15
2014			11.50		(0.02	)		1.06			1.04			(0.19	)		(0.02	)		(0.21	)		12.33
2013	(e)		10.00		(0.02	)		1.52			1.50			–			–			–			11.50
R-4 shares
2016			12.16		0.13			(0.10	)		0.03			(0.13	)		(0.23	)		(0.36	)		11.83
2015			12.33		0.22			(0.08	)		0.14			(0.30	)		(0.01	)		(0.31	)		12.16
2014			11.49		(0.01	)		1.07			1.06			(0.20	)		(0.02	)		(0.22	)		12.33
2013	(e)		10.00		(0.01	)		1.50			1.49			–			–			–			11.49
R-5 shares
2016			12.19		0.13			(0.10	)		0.03			(0.13	)		(0.23	)		(0.36	)		11.86
2015			12.36		0.21			(0.06	)		0.15			(0.31	)		(0.01	)		(0.32	)		12.19
2014			11.50		–			1.08			1.08			(0.20	)		(0.02	)		(0.22	)		12.36
2013	(e)		10.00		–			1.50			1.50			–			–			–			11.50


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.26	%(c)	$	5,164	0.39	%(d)	1.06	%	15.2	%
1.16	(c)		4,487	0.41	(d)	1.59		24.5
9.38	(c)		2,226	0.41	(d)	0.84		16.2
15.00 (c)	,(f)		662	0.41 (d)	,(g)	(0.04	) (g)	42.5	(g)

0.51			131,082	0.05	(d)	1.25		15.2
1.49			87,981	0.09	(d)	1.87		24.5
9.75			39,465	0.13	(d)	0.22		16.2
15.20	(f)		13	0.13 (d)	,(g)	0.25	(g)	42.5	(g)

(0.32	)		1,099	0.91	(d)	0.20		15.2
0.67			533	0.94	(d)	0.85		24.5
8.83			193	0.96	(d)	(0.43	)	16.2
14.50	(f)		11	0.96 (d)	,(g)	(0.59	) (g)	42.5	(g)

(0.14	)		947	0.78	(d)	0.53		15.2
0.77			699	0.81	(d)	1.19		24.5
9.00			254	0.83	(d)	(0.33	)	16.2
14.60	(f)		11	0.83 (d)	,(g)	(0.46	) (g)	42.5	(g)

0.07			5,126	0.60	(d)	0.78		15.2
0.95			3,746	0.63	(d)	1.45		24.5
9.14			2,073	0.65	(d)	(0.17	)	16.2
15.00	(f)		69	0.65 (d)	,(g)	(0.26	) (g)	42.5	(g)

0.25			4,573	0.41	(d)	1.08		15.2
1.15			3,335	0.44	(d)	1.79		24.5
9.33			1,670	0.46	(d)	(0.07	)	16.2
14.90	(f)		11	0.46 (d)	,(g)	(0.10	) (g)	42.5	(g)

0.31			7,534	0.29	(d)	1.11		15.2
1.25			6,627	0.32	(d)	1.69		24.5
9.50			2,756	0.34	(d)	0.03		16.2
15.00	(f)		12	0.34 (d)	,(g)	0.02	(g)	42.5	(g)


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):
			Net Asset		Net		Net Realized				Dividends		Distributions			Total
			Value,		Investment		and Unrealized		Total From		from Net		from			Dividends			Net Asset
			Beginning		Income		Gain (Loss) on		Investment		Investment		Realized			and			Value, End
			of Period		(Loss)(a)		Investments		Operations		Income		Gains			Distributions			of Period
PRINCIPAL LIFETIME HYBRID 2015 FUND
Institutional shares
2016		$	9.86	$	0.16	$	0.19	$	0.35	($	0.15	)	$–		($	0.15	)	$	10.06
2015			10.14		0.05		0.13		0.18		(0.46	)	–			(0.46	)		9.86
2014	(c)		10.00		–		0.14		0.14		–		–			–			10.14
R-6 shares
2016			9.86		0.19		0.16		0.35		(0.15	)	–			(0.15	)		10.06
2015	(f)		9.51		0.01		0.34		0.35		–		–			–			9.86
PRINCIPAL LIFETIME HYBRID 2020 FUND
Institutional shares
2016			9.93		0.15		0.19		0.34		(0.16	)	–			(0.16	)		10.11
2015			10.18		0.04		0.18		0.22		(0.47	)	–			(0.47	)		9.93
2014	(c)		10.00		–		0.18		0.18		–		–			–			10.18
R-6 shares
2016			9.92		0.19		0.16		0.35		(0.16	)	–			(0.16	)		10.11
2015	(f)		9.48		0.01		0.43		0.44		–		–			–			9.92
PRINCIPAL LIFETIME HYBRID 2025 FUND
Institutional shares
2016			9.97		0.10		0.23		0.33		(0.17	)	(0.01	)		(0.18	)		10.12
2015			10.20		0.03		0.22		0.25		(0.48	)	–			(0.48	)		9.97
2014	(c)		10.00		–		0.20		0.20		–		–			–			10.20
R-6 shares
2016			9.97		0.18		0.16		0.34		(0.17	)	(0.01	)		(0.18	)		10.13
2015	(f)		9.46		0.01		0.50		0.51		–		–			–			9.97
PRINCIPAL LIFETIME HYBRID 2030 FUND
Institutional shares
2016			9.99		0.14		0.19		0.33		(0.16	)	–			(0.16	)		10.16
2015			10.21		0.02		0.24		0.26		(0.48	)	–			(0.48	)		9.99
2014	(c)		10.00		–		0.21		0.21		–		–			–			10.21
R-6 shares
2016			9.99		0.18		0.15		0.33		(0.16	)	–			(0.16	)		10.16
2015	(f)		9.43		–		0.56		0.56		–		–			–			9.99
PRINCIPAL LIFETIME HYBRID 2035 FUND
Institutional shares
2016			10.02		0.10		0.22		0.32		(0.16	)	–			(0.16	)		10.18
2015			10.22		0.01		0.26		0.27		(0.47	)	–			(0.47	)		10.02
2014	(c)		10.00		–		0.22		0.22		–		–			–			10.22
R-6 shares
2016			10.02		0.17		0.15		0.32		(0.16	)	–			(0.16	)		10.18
2015	(f)		9.41		–		0.61		0.61		–		–			–			10.02
PRINCIPAL LIFETIME HYBRID 2040 FUND
Institutional shares
2016			10.04		0.13		0.19		0.32		(0.16	)	–			(0.16	)		10.20
2015			10.23		0.02		0.26		0.28		(0.47	)	–			(0.47	)		10.04
2014	(c)		10.00		–		0.23		0.23		–		–			–			10.23
R-6 shares
2016			10.04		0.17		0.15		0.32		(0.16	)	–			(0.16	)		10.20
2015	(f)		9.39		–		0.65		0.65		–		–			–			10.04


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.


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


3.67	%	$	12,207	0.05	%(b)	1.62	%	27.7	%
1.79			7,686	0.06	(b)	0.53		20.9
1.40	(d)		10	0.06 (b)	,(e)	0.36	(e)	0.0	(e)

3.67			11	0.02	(b)	1.92		27.7
3.68	(d)		10	0.03 (b)	,(e)	0.56	(e)	20.9	(e)


3.48			43,541	0.05	(b)	1.51		14.7
2.18			23,438	0.06	(b)	0.40		40.7
1.80	(d)		10	0.06 (b)	,(e)	0.31	(e)	0.0	(e)

3.58			11	0.02	(b)	1.90		14.7
4.64	(d)		10	0.03 (b)	,(e)	0.45	(e)	40.7	(e)


3.32			12,863	0.05	(b)	0.98		25.5
2.51			2,706	0.06	(b)	0.33		89.0
2.00	(d)		10	0.06 (b)	,(e)	0.24	(e)	0.0	(e)

3.42			11	0.02	(b)	1.86		25.5
5.39	(d)		11	0.03 (b)	,(e)	0.32	(e)	89.0	(e)


3.41			45,779	0.05	(b)	1.42		12.1
2.57			25,108	0.06	(b)	0.21		27.3
2.10	(d)		10	0.06 (b)	,(e)	0.21	(e)	0.0	(e)

3.41			11	0.02	(b)	1.79		12.1
5.94	(d)		11	0.03 (b)	,(e)	0.23	(e)	27.3	(e)


3.29			9,871	0.05	(b)	1.04		24.6
2.74			3,215	0.06	(b)	0.14		18.9
2.20	(d)		10	0.06 (b)	,(e)	0.20	(e)	0.0	(e)

3.29			11	0.02	(b)	1.71		24.6
6.48	(d)		11	0.03 (b)	,(e)	0.11	(e)	18.9	(e)


3.27			23,771	0.05	(b)	1.36		13.0
2.83			13,492	0.06	(b)	0.17		36.5
2.30	(d)		10	0.06 (b)	,(e)	0.16	(e)	0.0	(e)

3.27			11	0.02	(b)	1.70		13.0
6.92	(d)		11	0.03 (b)	,(e)	0.11	(e)	36.5	(e)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset		Net		Net Realized					Dividends			Total
			Value,		Investment		and Unrealized			Total From		from Net			Dividends			Net Asset
			Beginning		Income		Gain (Loss) on			Investment		Investment			and			Value, End
			of Period		(Loss)(a)		Investments			Operations		Income			Distributions			of Period
PRINCIPAL LIFETIME HYBRID 2045 FUND
Institutional shares
2016		$	10.03	$	0.11	$	0.20		$	0.31	($	0.16	)	($	0.16	)	$	10.18
2015			10.23		0.02		0.25			0.27		(0.47	)		(0.47	)		10.03
2014	(c)		10.00		–		0.23			0.23		–			–			10.23
R-6 shares
2016			10.03		0.17		0.14			0.31		(0.16	)		(0.16	)		10.18
2015	(f)		9.34		–		0.69			0.69		–			–			10.03
PRINCIPAL LIFETIME HYBRID 2050 FUND
Institutional shares
2016			10.06		0.14		0.17			0.31		(0.16	)		(0.16	)		10.21
2015			10.24		0.02		0.27			0.29		(0.47	)		(0.47	)		10.06
2014	(c)		10.00		–		0.24			0.24		–			–			10.24
R-6 shares
2016			10.06		0.17		0.14			0.31		(0.16	)		(0.16	)		10.21
2015	(f)		9.34		–		0.72			0.72		–			–			10.06
PRINCIPAL LIFETIME HYBRID 2055 FUND
Institutional shares
2016			10.06		0.08		0.24			0.32		(0.16	)		(0.16	)		10.22
2015			10.24		0.06		0.23			0.29		(0.47	)		(0.47	)		10.06
2014	(c)		10.00		–		0.24			0.24		–			–			10.24
R-6 shares
2016			10.06		0.17		0.16			0.33		(0.16	)		(0.16	)		10.23
2015	(f)		9.33		–		0.73			0.73		–			–			10.06
PRINCIPAL LIFETIME HYBRID 2060 FUND
Institutional shares
2016			10.06		0.08		0.24			0.32		(0.16	)		(0.16	)		10.22
2015			10.24		0.41		(0.12	)		0.29		(0.47	)		(0.47	)		10.06
2014	(c)		10.00		–		0.24			0.24		–			–			10.24
R-6 shares
2016			10.06		0.17		0.16			0.33		(0.16	)		(0.16	)		10.23
2015	(f)		9.33		–		0.73			0.73		–			–			10.06
PRINCIPAL LIFETIME HYBRID INCOME FUND
Institutional shares
2016			9.82		0.16		0.20			0.36		(0.14	)		(0.14	)		10.04
2015			10.10		0.12		0.03			0.15		(0.43	)		(0.43	)		9.82
2014	(c)		10.00		–		0.10			0.10		–			–			10.10
R-6 shares
2016			9.82		0.20		0.17			0.37		(0.14	)		(0.14	)		10.05
2015	(f)		9.66		0.02		0.14			0.16		–			–			9.82


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


3.18	%	$	6,226	0.05	%(b)	1.10	%	11.4	%
2.70			1,895	0.06	(b)	0.19		19.3
2.30	(d)		10	0.06 (b)	,(e)	0.10	(e)	0.0	(e)

3.18			11	0.02	(b)	1.73		11.4
7.39	(d)		10	0.03 (b)	,(e)	0.12	(e)	19.3	(e)


3.16			12,592	0.05	(b)	1.40		12.2
2.90			7,536	0.06	(b)	0.23		9.6
2.40	(d)		10	0.06 (b)	,(e)	0.08	(e)	0.0	(e)

3.16			11	0.02	(b)	1.71		12.2
7.71	(d)		11	0.03 (b)	,(e)	0.12	(e)	9.6	(e)


3.25			1,903	0.05	(b)	0.81		20.1
2.88			352	0.06	(b)	0.64		49.9
2.40	(d)		10	0.06 (b)	,(e)	0.06	(e)	0.0	(e)

3.35			11	0.02	(b)	1.73		20.1
7.82	(d)		11	0.03 (b)	,(e)	0.12	(e)	49.9	(e)


3.27			440	0.05	(b)	0.84		21.8
2.88			129	0.06	(b)	4.06		70.5
2.40	(d)		10	0.06 (b)	,(e)	0.06	(e)	0.0	(e)

3.37			11	0.02	(b)	1.73		21.8
7.82	(d)		11	0.03 (b)	,(e)	0.12	(e)	70.5	(e)


3.79			8,773	0.05	(b)	1.58		25.5
1.54			2,804	0.06	(b)	1.18		116.2
1.00	(d)		10	0.06 (b)	,(e)	0.50	(e)	0.0	(e)

3.90			11	0.02	(b)	2.03		25.5
1.66	(d)		10	0.03 (b)	,(e)	0.85	(e)	116.2	(e)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


		Net Asset		Net		Net Realized						Dividends			Total
		Value,		Investment		and Unrealized			Total From			from Net			Dividends			Net Asset
		Beginning		Income		Gain(Loss) on			Investment			Investment			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Distributions			of Period
PRINCIPAL LIFETIME STRATEGIC INCOME FUND
Class J shares
2016	$	11.96	$	0.21	$	0.19		$	0.40		($	0.21	)	($	0.21	)	$	12.15
2015		12.17		0.22		(0.21	)		0.01			(0.22	)		(0.22	)		11.96
2014		11.81		0.23		0.35			0.58			(0.22	)		(0.22	)		12.17
2013		11.47		0.26		0.34			0.60			(0.26	)		(0.26	)		11.81
2012		10.89		0.21		0.64			0.85			(0.27	)		(0.27	)		11.47
Institutional shares
2016		12.04		0.24		0.19			0.43			(0.25	)		(0.25	)		12.22
2015		12.25		0.27		(0.22	)		0.05			(0.26	)		(0.26	)		12.04
2014		11.89		0.27		0.35			0.62			(0.26	)		(0.26	)		12.25
2013		11.55		0.30		0.34			0.64			(0.30	)		(0.30	)		11.89
2012		10.96		0.25		0.66			0.91			(0.32	)		(0.32	)		11.55
R-1 shares
2016		11.97		0.14		0.19			0.33			(0.12	)		(0.12	)		12.18
2015		12.17		0.17		(0.23	)		(0.06	)		(0.14	)		(0.14	)		11.97
2014		11.81		0.17		0.34			0.51			(0.15	)		(0.15	)		12.17
2013		11.46		0.20		0.34			0.54			(0.19	)		(0.19	)		11.81
2012		10.87		0.17		0.63			0.80			(0.21	)		(0.21	)		11.46
R-2 shares
2016		11.98		0.16		0.18			0.34			(0.14	)		(0.14	)		12.18
2015		12.18		0.18		(0.23	)		(0.05	)		(0.15	)		(0.15	)		11.98
2014		11.82		0.17		0.36			0.53			(0.17	)		(0.17	)		12.18
2013		11.47		0.22		0.34			0.56			(0.21	)		(0.21	)		11.82
2012		10.89		0.17		0.64			0.81			(0.23	)		(0.23	)		11.47
R-3 shares
2016		11.90		0.18		0.18			0.36			(0.17	)		(0.17	)		12.09
2015		12.10		0.21		(0.23	)		(0.02	)		(0.18	)		(0.18	)		11.90
2014		11.75		0.20		0.34			0.54			(0.19	)		(0.19	)		12.10
2013		11.42		0.22		0.35			0.57			(0.24	)		(0.24	)		11.75
2012		10.83		0.18		0.66			0.84			(0.25	)		(0.25	)		11.42
R-4 shares
2016		11.94		0.20		0.18			0.38			(0.20	)		(0.20	)		12.12
2015		12.14		0.24		(0.23	)		0.01			(0.21	)		(0.21	)		11.94
2014		11.79		0.23		0.34			0.57			(0.22	)		(0.22	)		12.14
2013		11.44		0.25		0.35			0.60			(0.25	)		(0.25	)		11.79
2012		10.87		0.23		0.62			0.85			(0.28	)		(0.28	)		11.44
R-5 shares
2016		12.01		0.22		0.18			0.40			(0.21	)		(0.21	)		12.20
2015		12.22		0.23		(0.21	)		0.02			(0.23	)		(0.23	)		12.01
2014		11.86		0.23		0.36			0.59			(0.23	)		(0.23	)		12.22
2013		11.52		0.27		0.34			0.61			(0.27	)		(0.27	)		11.86
2012		10.93		0.22		0.66			0.88			(0.29	)		(0.29	)		11.52


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


3.42%	(d)	$	80,677	0.26	%	0.29	%	1.80	%	18.2	%
0.08	(d)		81,357	0.36		0.39		1.84		36.8
5.02	(d)		77,956	0.37		0.41		1.88		26.8
5.30	(d)		73,093	0.37		0.57		2.22		14.6
8.05	(d)		70,563	0.42		0.62		1.91		31.1

3.63			491,823	0.04		–		2.02		18.2
0.40			505,216	0.05		–		2.23		36.8
5.33			573,524	0.04		–		2.21		26.8
5.64			543,521	0.04		–		2.57		14.6
8.52			551,533	0.04		–		2.25		31.1

2.83			4,187	0.91		–		1.20		18.2
(0.51	)		5,467	0.92		–		1.43		36.8
4.40			7,563	0.92		–		1.46		26.8
4.79			9,473	0.91		–		1.77		14.6
7.55			10,740	0.92		–		1.51		31.1

2.90			6,161	0.78		–		1.30		18.2
(0.40	)		7,320	0.79		–		1.46		36.8
4.54			9,709	0.79		–		1.46		26.8
4.93			9,572	0.78		–		1.93		14.6
7.63			11,148	0.79		–		1.57		31.1

3.11			26,646	0.60		–		1.48		18.2
(0.14	)		29,146	0.61		–		1.71		36.8
4.68			35,215	0.61		–		1.68		26.8
5.04			38,997	0.60		–		1.95		14.6
7.97			39,193	0.61		–		1.66		31.1

3.23			15,566	0.41		–		1.69		18.2
0.07			16,252	0.42		–		1.98		36.8
4.89			21,059	0.42		–		1.93		26.8
5.33			22,865	0.41		–		2.18		14.6
8.01			24,227	0.42		–		2.08		31.1

3.43			40,472	0.29		–		1.82		18.2
0.15			45,434	0.30		–		1.92		36.8
5.08			48,096	0.30		–		1.93		26.8
5.39			45,658	0.29		–		2.34		14.6
8.26			43,874	0.30		–		2.00		31.1


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized				Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments		Operations		Income			Gains			Distributions			of Period
REAL ESTATE SECURITIES FUND
Class J shares
2016	$	22.65	$	0.28	$	0.84	$	1.12	($	0.32	)	($	1.26	)	($	1.58	)	$	22.19
2015		21.70		0.28		1.15		1.43		(0.26	)		(0.22	)		(0.48	)		22.65
2014		21.18		0.19		3.54		3.73		(0.30	)		(2.91	)		(3.21	)		21.70
2013		19.14		0.29		1.97		2.26		(0.22	)		–			(0.22	)		21.18
2012		17.05		0.18		2.04		2.22		(0.13	)		–			(0.13	)		19.14
Institutional shares
2016		23.24		0.34		0.88		1.22		(0.37	)		(1.26	)		(1.63	)		22.83
2015		22.26		0.35		1.19		1.54		(0.34	)		(0.22	)		(0.56	)		23.24
2014		21.64		0.26		3.64		3.90		(0.37	)		(2.91	)		(3.28	)		22.26
2013		19.54		0.39		2.02		2.41		(0.31	)		–			(0.31	)		21.64
2012		17.41		0.28		2.07		2.35		(0.22	)		–			(0.22	)		19.54
R-1 shares
2016		22.98		0.14		0.86		1.00		(0.19	)		(1.26	)		(1.45	)		22.53
2015		22.01		0.17		1.17		1.34		(0.15	)		(0.22	)		(0.37	)		22.98
2014		21.43		0.10		3.60		3.70		(0.21	)		(2.91	)		(3.12	)		22.01
2013		19.36		0.21		1.99		2.20		(0.13	)		–			(0.13	)		21.43
2012		17.25		0.12		2.06		2.18		(0.07	)		–			(0.07	)		19.36
R-2 shares
2016		22.26		0.17		0.83		1.00		(0.22	)		(1.26	)		(1.48	)		21.78
2015		21.34		0.19		1.14		1.33		(0.19	)		(0.22	)		(0.41	)		22.26
2014		20.88		0.12		3.49		3.61		(0.24	)		(2.91	)		(3.15	)		21.34
2013		18.87		0.23		1.94		2.17		(0.16	)		–			(0.16	)		20.88
2012		16.82		0.14		2.01		2.15		(0.10	)		–			(0.10	)		18.87
R-3 shares
2016		22.73		0.22		0.85		1.07		(0.26	)		(1.26	)		(1.52	)		22.28
2015		21.79		0.23		1.16		1.39		(0.23	)		(0.22	)		(0.45	)		22.73
2014		21.25		0.16		3.56		3.72		(0.27	)		(2.91	)		(3.18	)		21.79
2013		19.20		0.27		1.98		2.25		(0.20	)		–			(0.20	)		21.25
2012		17.11		0.17		2.05		2.22		(0.13	)		–			(0.13	)		19.20
R-4 shares
2016		22.51		0.27		0.83		1.10		(0.29	)		(1.26	)		(1.55	)		22.06
2015		21.58		0.27		1.15		1.42		(0.27	)		(0.22	)		(0.49	)		22.51
2014		21.08		0.20		3.52		3.72		(0.31	)		(2.91	)		(3.22	)		21.58
2013		19.05		0.30		1.97		2.27		(0.24	)		–			(0.24	)		21.08
2012		16.98		0.21		2.02		2.23		(0.16	)		–			(0.16	)		19.05
R-5 shares
2016		22.56		0.28		0.85		1.13		(0.33	)		(1.26	)		(1.59	)		22.10
2015		21.62		0.30		1.15		1.45		(0.29	)		(0.22	)		(0.51	)		22.56
2014		21.11		0.22		3.53		3.75		(0.33	)		(2.91	)		(3.24	)		21.62
2013		19.08		0.33		1.96		2.29		(0.26	)		–			(0.26	)		21.11
2012		17.00		0.23		2.03		2.26		(0.18	)		–			(0.18	)		19.08


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


5.14%	(c)	$	190,646	1.13	%	1.16	%	1.22	%	24.8	%
6.66	(c)		179,043	1.20		1.23		1.24		26.2
21.39	(c)		182,382	1.27		1.31		0.95		11.1
11.85	(c)		143,710	1.29		1.49		1.41		42.1
13.06	(c)		143,101	1.36		1.55		0.99		44.6

5.42	(d)		1,829,410	0.88		–		1.45		24.8
7.01	(d)		1,458,518	0.89		–		1.53		26.2
21.84			1,247,104	0.90		–		1.30		11.1
12.38			807,558	0.88		–		1.86		42.1
13.55			897,798	0.86		–		1.52		44.6

4.56			8,724	1.70		–		0.62		24.8
6.11			6,976	1.70		–		0.74		26.2
20.87			7,138	1.71		–		0.52		11.1
11.39			6,737	1.71		–		1.00		42.1
12.63			7,692	1.71		–		0.62		44.6

4.70			19,671	1.57		–		0.78		24.8
6.26			16,941	1.57		–		0.87		26.2
21.04			17,507	1.58		–		0.64		11.1
11.54			14,360	1.58		–		1.12		42.1
12.76			15,354	1.58		–		0.76		44.6

4.85	(d)		64,094	1.39		–		0.98		24.8
6.45	(d)		64,026	1.39		–		1.04		26.2
21.26			56,032	1.40		–		0.83		11.1
11.75			47,905	1.40		–		1.30		42.1
12.97			48,924	1.40		–		0.94		44.6

5.12			72,515	1.20		–		1.22		24.8
6.62			93,806	1.20		–		1.20		26.2
21.48			67,466	1.21		–		1.01		11.1
11.97			48,216	1.21		–		1.47		42.1
13.16			40,509	1.21		–		1.13		44.6

5.21			175,640	1.08		–		1.23		24.8
6.78			146,496	1.08		–		1.36		26.2
21.63			167,195	1.09		–		1.11		11.1
12.08			105,831	1.09		–		1.61		42.1
13.33			107,275	1.09		–		1.26		44.6


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
SAM BALANCED PORTFOLIO
Class J shares
2016	$	15.44	$	0.24	$	0.16		$	0.40	($	0.24	)	($	0.98	)	($	1.22	)	$	14.62
2015		15.96		0.31		(0.13	)		0.18		(0.32	)		(0.38	)		(0.70	)		15.44
2014		15.21		0.26		1.00			1.26		(0.26	)		(0.25	)		(0.51	)		15.96
2013		13.36		0.25		1.87			2.12		(0.27	)		–			(0.27	)		15.21
2012		12.37		0.25		1.00			1.25		(0.26	)		–			(0.26	)		13.36
Institutional shares
2016		15.66		0.27		0.17			0.44		(0.26	)		(0.98	)		(1.24	)		14.86
2015		16.19		0.36		(0.14	)		0.22		(0.37	)		(0.38	)		(0.75	)		15.66
2014		15.42		0.30		1.03			1.33		(0.31	)		(0.25	)		(0.56	)		16.19
2013		13.54		0.30		1.89			2.19		(0.31	)		–			(0.31	)		15.42
2012		12.52		0.27		1.05			1.32		(0.30	)		–			(0.30	)		13.54
R-1 shares
2016		15.63		0.15		0.15			0.30		(0.13	)		(0.98	)		(1.11	)		14.82
2015		16.15		0.23		(0.15	)		0.08		(0.22	)		(0.38	)		(0.60	)		15.63
2014		15.39		0.18		1.00			1.18		(0.17	)		(0.25	)		(0.42	)		16.15
2013		13.51		0.19		1.88			2.07		(0.19	)		–			(0.19	)		15.39
2012		12.50		0.20		1.00			1.20		(0.19	)		–			(0.19	)		13.51
R-2 shares
2016		15.59		0.15		0.17			0.32		(0.15	)		(0.98	)		(1.13	)		14.78
2015		16.11		0.26		(0.16	)		0.10		(0.24	)		(0.38	)		(0.62	)		15.59
2014		15.34		0.20		1.01			1.21		(0.19	)		(0.25	)		(0.44	)		16.11
2013		13.48		0.20		1.87			2.07		(0.21	)		–			(0.21	)		15.34
2012		12.48		0.20		1.01			1.21		(0.21	)		–			(0.21	)		13.48
R-3 shares
2016		15.61		0.18		0.17			0.35		(0.18	)		(0.98	)		(1.16	)		14.80
2015		16.14		0.26		(0.13	)		0.13		(0.28	)		(0.38	)		(0.66	)		15.61
2014		15.37		0.22		1.02			1.24		(0.22	)		(0.25	)		(0.47	)		16.14
2013		13.50		0.21		1.89			2.10		(0.23	)		–			(0.23	)		15.37
2012		12.50		0.22		1.01			1.23		(0.23	)		–			(0.23	)		13.50
R-4 shares
2016		15.64		0.22		0.17			0.39		(0.21	)		(0.98	)		(1.19	)		14.84
2015		16.17		0.33		(0.18	)		0.15		(0.30	)		(0.38	)		(0.68	)		15.64
2014		15.40		0.26		1.01			1.27		(0.25	)		(0.25	)		(0.50	)		16.17
2013		13.52		0.24		1.90			2.14		(0.26	)		–			(0.26	)		15.40
2012		12.52		0.23		1.03			1.26		(0.26	)		–			(0.26	)		13.52
R-5 shares
2016		15.65		0.23		0.17			0.40		(0.23	)		(0.98	)		(1.21	)		14.84
2015		16.17		0.33		(0.14	)		0.19		(0.33	)		(0.38	)		(0.71	)		15.65
2014		15.40		0.25		1.04			1.29		(0.27	)		(0.25	)		(0.52	)		16.17
2013		13.52		0.26		1.89			2.15		(0.27	)		–			(0.27	)		15.40
2012		12.52		0.25		1.02			1.27		(0.27	)		–			(0.27	)		13.52


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.92%	(d)	$	1,008,439	0.50	%	0.53	%	1.64	%	17.1	%
1.20	(d)		994,998	0.57		0.60		1.98		27.6
8.50	(d)		981,860	0.61		0.65		1.66		3.3
16.07	(d)		864,184	0.63		0.83		1.78		16.9
10.24	(d)		675,382	0.68		0.88		1.92		9.6

3.19			763,306	0.31		–		1.84		17.1
1.39			782,696	0.31		–		2.25		27.6
8.83			787,845	0.31		–		1.91		3.3
16.42			719,100	0.33		0.33		2.11		16.9
10.71			612,372	0.35		0.35		2.06		9.6

2.23			2,795	1.19		–		1.01		17.1
0.54			3,689	1.19		–		1.45		27.6
7.86			4,602	1.19		–		1.15		3.3
15.45			4,303	1.20		–		1.29		16.9
9.67			4,166	1.22		–		1.52		9.6

2.37			4,805	1.06		–		1.06		17.1
0.64			5,570	1.06		–		1.65		27.6
8.07			9,335	1.06		–		1.28		3.3
15.51			9,478	1.07		–		1.36		16.9
9.83			9,131	1.09		–		1.50		9.6

2.57			72,364	0.88		–		1.25		17.1
0.83			68,091	0.88		–		1.66		27.6
8.25			61,467	0.88		–		1.42		3.3
15.77			64,428	0.89		–		1.46		16.9
9.99			43,574	0.91		–		1.65		9.6

2.80			31,676	0.69		–		1.53		17.1
0.99			40,322	0.69		–		2.08		27.6
8.44			56,036	0.69		–		1.63		3.3
16.03			48,779	0.70		–		1.66		16.9
10.16			31,774	0.72		–		1.77		9.6

2.87			68,810	0.57		–		1.57		17.1
1.20			76,846	0.57		–		2.05		27.6
8.57			115,255	0.57		–		1.61		3.3
16.16			86,523	0.58		–		1.83		16.9
10.29			69,681	0.60		–		1.94		9.6


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
SAM CONSERVATIVE BALANCED PORTFOLIO
Class J shares
2016	$	11.91	$	0.25	$	0.11		$	0.36	($	0.24	)	($	0.47	)	($	0.71	)	$	11.56
2015		12.27		0.27		(0.15	)		0.12		(0.28	)		(0.20	)		(0.48	)		11.91
2014		11.92		0.25		0.58			0.83		(0.25	)		(0.23	)		(0.48	)		12.27
2013		11.10		0.25		0.89			1.14		(0.26	)		(0.06	)		(0.32	)		11.92
2012		10.46		0.26		0.69			0.95		(0.26	)		(0.05	)		(0.31	)		11.10
Institutional shares
2016		11.94		0.27		0.11			0.38		(0.26	)		(0.47	)		(0.73	)		11.59
2015		12.31		0.30		(0.16	)		0.14		(0.31	)		(0.20	)		(0.51	)		11.94
2014		11.96		0.29		0.57			0.86		(0.28	)		(0.23	)		(0.51	)		12.31
2013		11.13		0.28		0.90			1.18		(0.29	)		(0.06	)		(0.35	)		11.96
2012		10.48		0.29		0.71			1.00		(0.30	)		(0.05	)		(0.35	)		11.13
R-1 shares
2016		11.90		0.18		0.10			0.28		(0.16	)		(0.47	)		(0.63	)		11.55
2015		12.27		0.19		(0.15	)		0.04		(0.21	)		(0.20	)		(0.41	)		11.90
2014		11.91		0.21		0.55			0.76		(0.17	)		(0.23	)		(0.40	)		12.27
2013		11.10		0.18		0.88			1.06		(0.19	)		(0.06	)		(0.25	)		11.91
2012		10.45		0.21		0.70			0.91		(0.21	)		(0.05	)		(0.26	)		11.10
R-2 shares
2016		11.97		0.19		0.12			0.31		(0.18	)		(0.47	)		(0.65	)		11.63
2015		12.33		0.22		(0.17	)		0.05		(0.21	)		(0.20	)		(0.41	)		11.97
2014		11.97		0.20		0.58			0.78		(0.19	)		(0.23	)		(0.42	)		12.33
2013		11.15		0.19		0.90			1.09		(0.21	)		(0.06	)		(0.27	)		11.97
2012		10.50		0.23		0.69			0.92		(0.22	)		(0.05	)		(0.27	)		11.15
R-3 shares
2016		11.92		0.21		0.11			0.32		(0.20	)		(0.47	)		(0.67	)		11.57
2015		12.29		0.24		(0.17	)		0.07		(0.24	)		(0.20	)		(0.44	)		11.92
2014		11.93		0.22		0.58			0.80		(0.21	)		(0.23	)		(0.44	)		12.29
2013		11.12		0.23		0.87			1.10		(0.23	)		(0.06	)		(0.29	)		11.93
2012		10.47		0.24		0.70			0.94		(0.24	)		(0.05	)		(0.29	)		11.12
R-4 shares
2016		11.93		0.23		0.11			0.34		(0.22	)		(0.47	)		(0.69	)		11.58
2015		12.30		0.26		(0.16	)		0.10		(0.27	)		(0.20	)		(0.47	)		11.93
2014		11.95		0.25		0.57			0.82		(0.24	)		(0.23	)		(0.47	)		12.30
2013		11.13		0.23		0.90			1.13		(0.25	)		(0.06	)		(0.31	)		11.95
2012		10.48		0.24		0.72			0.96		(0.26	)		(0.05	)		(0.31	)		11.13
R-5 shares
2016		11.93		0.24		0.12			0.36		(0.24	)		(0.47	)		(0.71	)		11.58
2015		12.30		0.27		(0.16	)		0.11		(0.28	)		(0.20	)		(0.48	)		11.93
2014		11.95		0.25		0.58			0.83		(0.25	)		(0.23	)		(0.48	)		12.30
2013		11.13		0.25		0.89			1.14		(0.26	)		(0.06	)		(0.32	)		11.95
2012		10.48		0.27		0.70			0.97		(0.27	)		(0.05	)		(0.32	)		11.13


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


3.34%	(d)	$	565,441	0.50	%	0.53	%	2.16	%	17.3	%
0.98	(d)		538,078	0.58		0.61		2.23		22.7
7.12	(d)		530,582	0.61		0.65		2.07		3.2
10.45	(d)		451,227	0.63		0.84		2.14		13.1
9.31	(d)		340,861	0.69		0.88		2.42		6.8

3.52			318,123	0.32		–		2.32		17.3
1.16			290,780	0.32		–		2.49		22.7
7.40			288,691	0.32		–		2.38		3.2
10.83			268,881	0.34		0.34		2.46		13.1
9.74			236,776	0.35		0.35		2.64		6.8

2.62			2,408	1.19		–		1.56		17.3
0.28			2,927	1.19		–		1.61		22.7
6.54			2,823	1.19		–		1.75		3.2
9.75			4,436	1.20		–		1.60		13.1
8.86			3,753	1.22		–		1.94		6.8

2.80			1,194	1.06		–		1.62		17.3
0.42			1,532	1.06		–		1.79		22.7
6.68			2,756	1.06		–		1.67		3.2
9.93			3,019	1.07		–		1.64		13.1
8.92			2,532	1.09		–		2.17		6.8

2.95			16,869	0.88		–		1.82		17.3
0.59			18,301	0.88		–		2.02		22.7
6.91			21,180	0.88		–		1.82		3.2
10.05			20,157	0.89		–		2.04		13.1
9.18			22,210	0.91		–		2.20		6.8

3.13			15,336	0.69		–		2.02		17.3
0.77			18,067	0.69		–		2.17		22.7
7.02			20,811	0.69		–		2.06		3.2
10.34			17,604	0.70		–		1.99		13.1
9.39			11,581	0.72		–		2.26		6.8

3.26			32,100	0.57		–		2.06		17.3
0.90			28,673	0.57		–		2.21		22.7
7.14			36,356	0.57		–		2.08		3.2
10.48			29,141	0.58		–		2.14		13.1
9.49			18,477	0.60		–		2.46		6.8


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
SAM CONSERVATIVE GROWTH PORTFOLIO
Class J shares
2016	$	17.66	$	0.18	$	0.13		$	0.31	($	0.16	)	($	1.64	)	($	1.80	)	$	16.17
2015		18.36		0.30		(0.11	)		0.19		(0.31	)		(0.58	)		(0.89	)		17.66
2014		17.08		0.21		1.46			1.67		(0.24	)		(0.15	)		(0.39	)		18.36
2013		14.36		0.21		2.75			2.96		(0.24	)		–			(0.24	)		17.08
2012		13.15		0.17		1.25			1.42		(0.21	)		–			(0.21	)		14.36
Institutional shares
2016		17.87		0.22		0.13			0.35		(0.20	)		(1.64	)		(1.84	)		16.38
2015		18.57		0.36		(0.11	)		0.25		(0.37	)		(0.58	)		(0.95	)		17.87
2014		17.27		0.27		1.47			1.74		(0.29	)		(0.15	)		(0.44	)		18.57
2013		14.52		0.26		2.78			3.04		(0.29	)		–			(0.29	)		17.27
2012		13.29		0.20		1.28			1.48		(0.25	)		–			(0.25	)		14.52
R-1 shares
2016		17.56		0.08		0.12			0.20		(0.03	)		(1.64	)		(1.67	)		16.09
2015		18.26		0.22		(0.13	)		0.09		(0.21	)		(0.58	)		(0.79	)		17.56
2014		16.99		0.12		1.44			1.56		(0.14	)		(0.15	)		(0.29	)		18.26
2013		14.29		0.13		2.74			2.87		(0.17	)		–			(0.17	)		16.99
2012		13.07		0.12		1.23			1.35		(0.13	)		–			(0.13	)		14.29
R-2 shares
2016		17.57		0.09		0.13			0.22		(0.04	)		(1.64	)		(1.68	)		16.11
2015		18.28		0.27		(0.16	)		0.11		(0.24	)		(0.58	)		(0.82	)		17.57
2014		17.01		0.14		1.45			1.59		(0.17	)		(0.15	)		(0.32	)		18.28
2013		14.29		0.13		2.76			2.89		(0.17	)		–			(0.17	)		17.01
2012		13.08		0.12		1.24			1.36		(0.15	)		–			(0.15	)		14.29
R-3 shares
2016		17.62		0.12		0.13			0.25		(0.11	)		(1.64	)		(1.75	)		16.12
2015		18.32		0.24		(0.10	)		0.14		(0.26	)		(0.58	)		(0.84	)		17.62
2014		17.05		0.18		1.45			1.63		(0.21	)		(0.15	)		(0.36	)		18.32
2013		14.35		0.16		2.76			2.92		(0.22	)		–			(0.22	)		17.05
2012		13.15		0.15		1.24			1.39		(0.19	)		–			(0.19	)		14.35
R-4 shares
2016		17.77		0.16		0.13			0.29		(0.13	)		(1.64	)		(1.77	)		16.29
2015		18.48		0.31		(0.14	)		0.17		(0.30	)		(0.58	)		(0.88	)		17.77
2014		17.20		0.22		1.44			1.66		(0.23	)		(0.15	)		(0.38	)		18.48
2013		14.46		0.21		2.76			2.97		(0.23	)		–			(0.23	)		17.20
2012		13.24		0.16		1.27			1.43		(0.21	)		–			(0.21	)		14.46
R-5 shares
2016		17.74		0.16		0.14			0.30		(0.13	)		(1.64	)		(1.77	)		16.27
2015		18.44		0.33		(0.13	)		0.20		(0.32	)		(0.58	)		(0.90	)		17.74
2014		17.16		0.21		1.47			1.68		(0.25	)		(0.15	)		(0.40	)		18.44
2013		14.43		0.22		2.77			2.99		(0.26	)		–			(0.26	)		17.16
2012		13.21		0.18		1.26			1.44		(0.22	)		–			(0.22	)		14.43


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.15%	(d)	$	490,030	0.51	%	0.54	%	1.11	%	22.4	%
1.14	(d)		496,991	0.59		0.62		1.68		35.6
9.93	(d)		496,391	0.62		0.66		1.19		4.0
20.95	(d)		422,288	0.65		0.85		1.33		20.2
10.94	(d)		313,149	0.70		0.90		1.26		13.1

2.39			471,935	0.32		–		1.35		22.4
1.42			523,817	0.31		–		1.97		35.6
10.23			526,264	0.32		–		1.52		4.0
21.30			487,967	0.33		0.33		1.67		20.2
11.37			401,459	0.34		0.34		1.40		13.1

1.48			2,542	1.19		–		0.49		22.4
0.56			3,158	1.19		–		1.25		35.6
9.28			4,246	1.19		–		0.68		4.0
20.30			4,190	1.20		–		0.83		20.2
10.40			3,657	1.21		–		0.86		13.1

1.58			4,172	1.06		–		0.58		22.4
0.66			5,383	1.06		–		1.49		35.6
9.45			8,556	1.06		–		0.77		4.0
20.45			8,384	1.07		–		0.82		20.2
10.54			5,916	1.08		–		0.90		13.1

1.79			27,286	0.88		–		0.78		22.4
0.84			29,621	0.88		–		1.33		35.6
9.68			26,537	0.88		–		1.02		4.0
20.60			26,667	0.89		–		1.01		20.2
10.76			17,863	0.90		–		1.06		13.1

2.01			15,639	0.69		–		0.99		22.4
1.01			20,164	0.69		–		1.70		35.6
9.83			24,177	0.69		–		1.21		4.0
20.87			21,406	0.70		–		1.31		20.2
10.96			15,442	0.71		–		1.15		13.1

2.10			47,063	0.57		–		1.02		22.4
1.18			47,254	0.57		–		1.81		35.6
9.95			84,381	0.57		–		1.17		4.0
21.04			67,284	0.58		–		1.37		20.2
11.10			47,638	0.59		–		1.32		13.1


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized						Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From			from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment			Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations			Income			Gains			Distributions			of Period
SAM FLEXIBLE INCOME PORTFOLIO
Class J shares
2016	$	12.12	$	0.33	$	0.15		$	0.48		($	0.33	)	($	0.30	)	($	0.63	)	$	11.97
2015		12.55		0.33		(0.30	)		0.03			(0.33	)		(0.13	)		(0.46	)		12.12
2014		12.29		0.32		0.45			0.77			(0.32	)		(0.19	)		(0.51	)		12.55
2013		11.91		0.32		0.51			0.83			(0.34	)		(0.11	)		(0.45	)		12.29
2012		11.25		0.35		0.68			1.03			(0.35	)		(0.02	)		(0.37	)		11.91
Institutional shares
2016		12.17		0.35		0.17			0.52			(0.36	)		(0.30	)		(0.66	)		12.03
2015		12.60		0.37		(0.31	)		0.06			(0.36	)		(0.13	)		(0.49	)		12.17
2014		12.34		0.36		0.45			0.81			(0.36	)		(0.19	)		(0.55	)		12.60
2013		11.96		0.37		0.50			0.87			(0.38	)		(0.11	)		(0.49	)		12.34
2012		11.29		0.39		0.69			1.08			(0.39	)		(0.02	)		(0.41	)		11.96
R-1 shares
2016		12.13		0.25		0.16			0.41			(0.26	)		(0.30	)		(0.56	)		11.98
2015		12.56		0.26		(0.31	)		(0.05	)		(0.25	)		(0.13	)		(0.38	)		12.13
2014		12.30		0.25		0.45			0.70			(0.25	)		(0.19	)		(0.44	)		12.56
2013		11.92		0.26		0.50			0.76			(0.27	)		(0.11	)		(0.38	)		12.30
2012		11.25		0.30		0.68			0.98			(0.29	)		(0.02	)		(0.31	)		11.92
R-2 shares
2016		12.16		0.27		0.15			0.42			(0.27	)		(0.30	)		(0.57	)		12.01
2015		12.59		0.27		(0.30	)		(0.03	)		(0.27	)		(0.13	)		(0.40	)		12.16
2014		12.32		0.27		0.45			0.72			(0.26	)		(0.19	)		(0.45	)		12.59
2013		11.94		0.28		0.50			0.78			(0.29	)		(0.11	)		(0.40	)		12.32
2012		11.27		0.31		0.68			0.99			(0.30	)		(0.02	)		(0.32	)		11.94
R-3 shares
2016		12.15		0.29		0.15			0.44			(0.29	)		(0.30	)		(0.59	)		12.00
2015		12.58		0.30		(0.31	)		(0.01	)		(0.29	)		(0.13	)		(0.42	)		12.15
2014		12.32		0.29		0.45			0.74			(0.29	)		(0.19	)		(0.48	)		12.58
2013		11.94		0.30		0.50			0.80			(0.31	)		(0.11	)		(0.42	)		12.32
2012		11.27		0.33		0.68			1.01			(0.32	)		(0.02	)		(0.34	)		11.94
R-4 shares
2016		12.16		0.31		0.15			0.46			(0.31	)		(0.30	)		(0.61	)		12.01
2015		12.59		0.33		(0.32	)		0.01			(0.31	)		(0.13	)		(0.44	)		12.16
2014		12.32		0.32		0.45			0.77			(0.31	)		(0.19	)		(0.50	)		12.59
2013		11.95		0.31		0.50			0.81			(0.33	)		(0.11	)		(0.44	)		12.32
2012		11.28		0.35		0.69			1.04			(0.35	)		(0.02	)		(0.37	)		11.95
R-5 shares
2016		12.15		0.32		0.17			0.49			(0.33	)		(0.30	)		(0.63	)		12.01
2015		12.58		0.34		(0.31	)		0.03			(0.33	)		(0.13	)		(0.46	)		12.15
2014		12.32		0.32		0.46			0.78			(0.33	)		(0.19	)		(0.52	)		12.58
2013		11.94		0.33		0.51			0.84			(0.35	)		(0.11	)		(0.46	)		12.32
2012		11.28		0.36		0.68			1.04			(0.36	)		(0.02	)		(0.38	)		11.94


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


4.26%	(d)	$	1,024,333	0.51	%	0.54	%	2.79	%	10.4	%
0.25	(d)		849,016	0.58		0.61		2.66		17.7
6.43	(d)		723,517	0.61		0.65		2.57		2.2
7.16	(d)		589,349	0.64		0.84		2.69		10.5
9.27	(d)		423,411	0.69		0.89		3.05		5.5

4.51			174,007	0.32		–		2.99		10.4
0.51			177,423	0.32		–		2.95		17.7
6.70			180,049	0.32		–		2.89		2.2
7.45			174,501	0.34		0.34		3.05		10.5
9.68			168,309	0.36		0.36		3.30		5.5

3.57			1,100	1.19		–		2.11		10.4
(0.36	)		676	1.19		–		2.10		17.7
5.80			741	1.19		–		2.05		2.2
6.56			1,044	1.20		–		2.16		10.5
8.78			820	1.21		–		2.58		5.5

3.66			717	1.06		–		2.25		10.4
(0.23	)		839	1.06		–		2.21		17.7
6.00			1,139	1.06		–		2.16		2.2
6.68			1,682	1.07		–		2.31		10.5
8.90			1,767	1.08		–		2.67		5.5

3.86			8,034	0.88		–		2.49		10.4
(0.05	)		10,070	0.88		–		2.43		17.7
6.12			10,483	0.88		–		2.36		2.2
6.87			10,544	0.89		–		2.47		10.5
9.11			8,821	0.90		–		2.85		5.5

4.05			6,091	0.69		–		2.66		10.4
0.13			7,849	0.69		–		2.70		17.7
6.40			12,062	0.69		–		2.55		2.2
6.99			12,416	0.70		–		2.55		10.5
9.31			6,962	0.71		–		3.01		5.5

4.27			20,211	0.57		–		2.71		10.4
0.26			16,871	0.57		–		2.74		17.7
6.45			20,815	0.57		–		2.61		2.2
7.20			17,297	0.58		–		2.77		10.5
9.35			12,966	0.59		–		3.08		5.5


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends			Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income			Gains			Distributions			of Period
SAM STRATEGIC GROWTH PORTFOLIO
Class J shares
2016	$	20.06	$	0.22	($	0.06	)	$	0.16	($	0.19	)	($	2.32	)	($	2.51	)	$	17.71
2015		21.26		0.38		(0.19	)		0.19		(0.39	)		(1.00	)		(1.39	)		20.06
2014		19.44		0.20		1.99			2.19		(0.23	)		(0.14	)		(0.37	)		21.26
2013		15.75		0.19		3.71			3.90		(0.21	)		–			(0.21	)		19.44
2012		14.28		0.12		1.48			1.60		(0.13	)		–			(0.13	)		15.75
Institutional shares
2016		20.26		0.26		(0.06	)		0.20		(0.24	)		(2.32	)		(2.56	)		17.90
2015		21.46		0.45		(0.20	)		0.25		(0.45	)		(1.00	)		(1.45	)		20.26
2014		19.61		0.27		2.01			2.28		(0.29	)		(0.14	)		(0.43	)		21.46
2013		15.89		0.25		3.73			3.98		(0.26	)		–			(0.26	)		19.61
2012		14.40		0.14		1.53			1.67		(0.18	)		–			(0.18	)		15.89
R-1 shares
2016		19.91		0.12		(0.08	)		0.04		(0.08	)		(2.32	)		(2.40	)		17.55
2015		21.10		0.48		(0.41	)		0.07		(0.26	)		(1.00	)		(1.26	)		19.91
2014		19.30		0.10		1.97			2.07		(0.13	)		(0.14	)		(0.27	)		21.10
2013		15.65		0.09		3.69			3.78		(0.13	)		–			(0.13	)		19.30
2012		14.18		0.06		1.46			1.52		(0.05	)		–			(0.05	)		15.65
R-2 shares
2016		19.96		0.12		(0.06	)		0.06		(0.07	)		(2.32	)		(2.39	)		17.63
2015		21.15		0.36		(0.26	)		0.10		(0.29	)		(1.00	)		(1.29	)		19.96
2014		19.36		0.11		1.98			2.09		(0.16	)		(0.14	)		(0.30	)		21.15
2013		15.68		0.09		3.72			3.81		(0.13	)		–			(0.13	)		19.36
2012		14.22		0.05		1.49			1.54		(0.08	)		–			(0.08	)		15.68
R-3 shares
2016		20.00		0.16		(0.07	)		0.09		(0.14	)		(2.32	)		(2.46	)		17.63
2015		21.19		0.33		(0.19	)		0.14		(0.33	)		(1.00	)		(1.33	)		20.00
2014		19.39		0.18		1.95			2.13		(0.19	)		(0.14	)		(0.33	)		21.19
2013		15.72		0.14		3.71			3.85		(0.18	)		–			(0.18	)		19.39
2012		14.25		0.08		1.49			1.57		(0.10	)		–			(0.10	)		15.72
R-4 shares
2016		20.12		0.20		(0.07	)		0.13		(0.16	)		(2.32	)		(2.48	)		17.77
2015		21.32		0.42		(0.25	)		0.17		(0.37	)		(1.00	)		(1.37	)		20.12
2014		19.50		0.18		2.00			2.18		(0.22	)		(0.14	)		(0.36	)		21.32
2013		15.81		0.11		3.79			3.90		(0.21	)		–			(0.21	)		19.50
2012		14.34		0.11		1.50			1.61		(0.14	)		–			(0.14	)		15.81
R-5 shares
2016		20.09		0.22		(0.07	)		0.15		(0.18	)		(2.32	)		(2.50	)		17.74
2015		21.28		0.39		(0.18	)		0.21		(0.40	)		(1.00	)		(1.40	)		20.09
2014		19.46		0.20		2.01			2.21		(0.25	)		(0.14	)		(0.39	)		21.28
2013		15.78		0.21		3.70			3.91		(0.23	)		–			(0.23	)		19.46
2012		14.30		0.12		1.50			1.62		(0.14	)		–			(0.14	)		15.78


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


1.22%	(d)	$	265,807	0.53	%	0.56	%	1.23	%	22.9	%
0.96	(d)		278,150	0.60		0.63		1.87		51.2
11.43	(d)		283,507	0.63		0.67		1.01		5.9
25.04	(d)		253,180	0.66		0.86		1.07		26.5
11.28	(d)		185,076	0.73		0.92		0.77		13.6

1.44			243,768	0.32		–		1.49		22.9
1.25			267,751	0.31		–		2.19		51.2
11.80			280,593	0.32		–		1.34		5.9
25.43			255,114	0.33		0.33		1.41		26.5
11.74			199,595	0.36		0.36		0.88		13.6

0.54			2,133	1.19		–		0.69		22.9
0.37			3,151	1.19		–		2.34		51.2
10.85			4,253	1.19		–		0.47		5.9
24.35			4,215	1.20		–		0.52		26.5
10.74			2,904	1.22		–		0.41		13.6

0.62			2,168	1.06		–		0.70		22.9
0.55			2,830	1.06		–		1.74		51.2
10.95			4,779	1.06		–		0.55		5.9
24.51			4,290	1.07		–		0.54		26.5
10.88			2,597	1.09		–		0.31		13.6

0.83			17,423	0.88		–		0.89		22.9
0.72			17,993	0.88		–		1.61		51.2
11.15			17,809	0.88		–		0.90		5.9
24.77			19,357	0.89		–		0.79		26.5
11.13			13,780	0.91		–		0.56		13.6

1.03			11,621	0.69		–		1.12		22.9
0.89			14,237	0.69		–		2.05		51.2
11.36			20,035	0.69		–		0.90		5.9
24.94			15,061	0.70		–		0.63		26.5
11.33			6,644	0.72		–		0.70		13.6

1.14			20,857	0.57		–		1.26		22.9
1.07			24,189	0.57		–		1.93		51.2
11.51			34,618	0.57		–		1.00		5.9
25.09			27,490	0.58		–		1.17		26.5
11.48			18,765	0.60		–		0.81		13.6


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized					Dividends		Distributions			Total
		Value,		Investment		and Unrealized			Total From		from Net		from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on			Investment		Investment		Realized			and			Value, End
		of Period		(Loss)(a)		Investments			Operations		Income		Gains			Distributions			of Period
SHORT-TERM INCOME FUND
Class J shares
2016	$	12.17	$	0.20	$	0.06		$	0.26	($	0.21	)	$–		($	0.21	)	$	12.22
2015		12.23		0.16		(0.06	)		0.10		(0.16	)	–			(0.16	)		12.17
2014		12.26		0.16		(0.02	)		0.14		(0.16	)	(0.01	)		(0.17	)		12.23
2013		12.28		0.15		(0.03	)		0.12		(0.14	)	–			(0.14	)		12.26
2012		11.96		0.20		0.31			0.51		(0.19	)	–			(0.19	)		12.28
Institutional shares
2016		12.17		0.23		0.06			0.29		(0.24	)	–			(0.24	)		12.22
2015		12.23		0.20		(0.06	)		0.14		(0.20	)	–			(0.20	)		12.17
2014		12.26		0.21		(0.02	)		0.19		(0.21	)	(0.01	)		(0.22	)		12.23
2013		12.28		0.20		(0.03	)		0.17		(0.19	)	–			(0.19	)		12.26
2012		11.96		0.25		0.32			0.57		(0.25	)	–			(0.25	)		12.28
R-1 shares
2016		12.17		0.13		0.06			0.19		(0.14	)	–			(0.14	)		12.22
2015		12.23		0.10		(0.07	)		0.03		(0.09	)	–			(0.09	)		12.17
2014		12.26		0.10		(0.02	)		0.08		(0.10	)	(0.01	)		(0.11	)		12.23
2013		12.28		0.10		(0.03	)		0.07		(0.09	)	–			(0.09	)		12.26
2012		11.96		0.15		0.32			0.47		(0.15	)	–			(0.15	)		12.28
R-2 shares
2016		12.17		0.14		0.06			0.20		(0.15	)	–			(0.15	)		12.22
2015		12.23		0.11		(0.06	)		0.05		(0.11	)	–			(0.11	)		12.17
2014		12.26		0.12		(0.02	)		0.10		(0.12	)	(0.01	)		(0.13	)		12.23
2013		12.28		0.12		(0.03	)		0.09		(0.11	)	–			(0.11	)		12.26
2012		11.96		0.16		0.32			0.48		(0.16	)	–			(0.16	)		12.28
R-3 shares
2016		12.17		0.16		0.08			0.24		(0.18	)	–			(0.18	)		12.23
2015		12.23		0.13		(0.06	)		0.07		(0.13	)	–			(0.13	)		12.17
2014		12.27		0.14		(0.03	)		0.11		(0.14	)	(0.01	)		(0.15	)		12.23
2013		12.28		0.14		(0.02	)		0.12		(0.13	)	–			(0.13	)		12.27
2012		11.96		0.19		0.31			0.50		(0.18	)	–			(0.18	)		12.28
R-4 shares
2016		12.17		0.19		0.07			0.26		(0.20	)	–			(0.20	)		12.23
2015		12.23		0.16		(0.07	)		0.09		(0.15	)	–			(0.15	)		12.17
2014		12.27		0.17		(0.03	)		0.14		(0.17	)	(0.01	)		(0.18	)		12.23
2013		12.28		0.16		(0.02	)		0.14		(0.15	)	–			(0.15	)		12.27
2012		11.97		0.21		0.31			0.52		(0.21	)	–			(0.21	)		12.28
R-5 shares
2016		12.18		0.20		0.06			0.26		(0.21	)	–			(0.21	)		12.23
2015		12.24		0.17		(0.06	)		0.11		(0.17	)	–			(0.17	)		12.18
2014		12.27		0.18		(0.02	)		0.16		(0.18	)	(0.01	)		(0.19	)		12.24
2013		12.28		0.18		(0.02	)		0.16		(0.17	)	–			(0.17	)		12.27
2012		11.96		0.23		0.31			0.54		(0.22	)	–			(0.22	)		12.28


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


2.16%	(c)	$	144,158	0.70	%	0.73	%	1.62	%	53.6	%
0.83	(c)		124,221	0.75		0.80		1.32		56.4
1.16	(c)		120,296	0.80		0.84		1.34		49.1
1.00	(c)		124,761	0.87		1.07		1.25		50.1
4.29	(c)		107,444	0.94		1.13		1.63		47.9

2.44			2,346,871	0.43		–		1.89		53.6
1.14			2,180,068	0.43		–		1.63		56.4
1.52			1,936,142	0.44		–		1.69		49.1
1.43			1,134,768	0.45		0.45		1.67		50.1
4.79			897,254	0.46		0.46		2.10		47.9

1.56			1,338	1.30	(d)	–		1.03		53.6
0.27			1,237	1.30	(d)	–		0.78		56.4
0.65			1,468	1.30	(d)	–		0.84		49.1
0.57			1,851	1.30	(d)	–		0.82		50.1
3.92			2,247	1.30	(d)	–		1.22		47.9

1.70			2,358	1.17	(d)	–		1.16		53.6
0.40			1,975	1.17	(d)	–		0.90		56.4
0.78			1,957	1.17	(d)	–		0.97		49.1
0.70			1,640	1.18	(d)	–		0.94		50.1
4.04			1,194	1.18	(d)	–		1.30		47.9

1.88	(e)		21,159	0.99	(d)	–		1.34		53.6
0.67	(e)		11,415	0.99	(d)	–		1.09		56.4
0.88			14,472	0.99	(d)	–		1.15		49.1
0.96			10,748	0.99	(d)	–		1.13		50.1
4.24			10,336	0.99	(d)	–		1.56		47.9

2.16			13,199	0.79	(d)	–		1.53		53.6
0.78			14,049	0.79	(d)	–		1.28		56.4
1.09			14,272	0.79	(d)	–		1.35		49.1
1.17			4,377	0.79	(d)	–		1.33		50.1
4.36			3,106	0.79	(d)	–		1.72		47.9

2.19			12,039	0.68	(d)	–		1.65		53.6
0.90			12,383	0.68	(d)	–		1.39		56.4
1.28			9,287	0.68	(d)	–		1.46		49.1
1.28			4,735	0.68	(d)	–		1.44		50.1
4.56			3,373	0.68	(d)	–		1.89		47.9


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net			Net Realized			Dividends			Distributions			Total
		Value,		Investment			and Unrealized		Total From	from Net			from			Dividends			Net Asset
		Beginning		Income			Gain (Loss) on		Investment	Investment			Realized			and			Value, End
		of Period		(Loss)(a)			Investments		Operations	Income			Gains			Distributions			of Period
SMALLCAP FUND
Class J shares
2016	$	19.82	$	0.14		$	0.04	$	0.18	$–		($	0.74	)	($	0.74	)	$	19.26
2015		20.98		(0.01	)		1.32		1.31	–			(2.47	)		(2.47	)		19.82
2014		20.88		(0.02	)		1.68		1.66	–			(1.56	)		(1.56	)		20.98
2013		14.97		0.06			6.01		6.07	(0.07	)		(0.09	)		(0.16	)		20.88
2012		13.28		0.02			1.67		1.69	–			–			–			14.97
Institutional shares
2016		21.81		0.23			0.01		0.24	–			(0.74	)		(0.74	)		21.31
2015		22.77		0.06			1.45		1.51	–			(2.47	)		(2.47	)		21.81
2014		22.51		0.06			1.81		1.87	(0.05	)		(1.56	)		(1.61	)		22.77
2013		16.14		0.13			6.47		6.60	(0.14	)		(0.09	)		(0.23	)		22.51
2012		14.24		0.09			1.81		1.90	–			–			–			16.14
R-1 shares
2016		19.88		0.03			0.03		0.06	–			(0.74	)		(0.74	)		19.20
2015		21.13		(0.12	)		1.34		1.22	–			(2.47	)		(2.47	)		19.88
2014		21.12		(0.13	)		1.70		1.57	–			(1.56	)		(1.56	)		21.13
2013		15.16		(0.02	)		6.08		6.06	(0.01	)		(0.09	)		(0.10	)		21.12
2012		13.50		(0.01	)		1.67		1.66	–			–			–			15.16
R-2 shares
2016		20.06		0. 01			0.07		0.08	–			(0.74	)		(0.74	)		19.40
2015		21.27		(0.10	)		1.36		1.26	–			(2.47	)		(2.47	)		20.06
2014		21.22		(0.10	)		1.71		1.61	–			(1.56	)		(1.56	)		21.27
2013		15.21		–			6.11		6.11	(0.01	)		(0.09	)		(0.10	)		21.22
2012		13.52		(0.01	)		1.70		1.69	–			–			–			15.21
R-3 shares
2016		20.63		0.09			0.03		0.12	–			(0.74	)		(0.74	)		20.01
2015		21.77		(0.06	)		1.39		1.33	–			(2.47	)		(2.47	)		20.63
2014		21.65		(0.06	)		1.74		1.68	–			(1.56	)		(1.56	)		21.77
2013		15.54		0.03			6.23		6.26	(0.06	)		(0.09	)		(0.15	)		21.65
2012		13.79		0.03			1.72		1.75	–			–			–			15.54
R-4 shares
2016		21.27		0.11			0.06		0.17	–			(0.74	)		(0.74	)		20.70
2015		22.34		(0.02	)		1.42		1.40	–			(2.47	)		(2.47	)		21.27
2014		22.14		(0.02	)		1.78		1.76	–			(1.56	)		(1.56	)		22.34
2013		15.87		0.07			6.37		6.44	(0.08	)		(0.09	)		(0.17	)		22.14
2012		14.06		0.04			1.77		1.81	–			–			–			15.87
R-5 shares
2016		21.65		0.15			0.04		0.19	–			(0.74	)		(0.74	)		21.10
2015		22.66		–			1.46		1.46	–			(2.47	)		(2.47	)		21.65
2014		22.42		0.01			1.80		1.81	(0.01	)		(1.56	)		(1.57	)		22.66
2013		16.08		0.09			6.44		6.53	(0.10	)		(0.09	)		(0.19	)		22.42
2012		14.22		0.07			1.79		1.86	–			–			–			16.08


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


1.01%	(c)	$	182,800	1.02	%	1.05	%	0.75	%	59.1	%
6.97	(c)		200,263	1.10		1.13		(0.06	)	69.2
8.17	(c)		200,333	1.13		1.17		(0.09	)	67.6
40.88	(c)		200,359	1.18		1.38		0.32		95.2
12.73	(c)		148,772	1.28		1.48		0.17		90.2

1.20			61,357	0.80		0.82		1.12		59.1
7.34			98,042	0.79		0.79		0.26		69.2
8.54			72,583	0.79		0.79		0.25		67.6
41.38			65,062	0.80		0.80		0.70		95.2
13.34			45,620	0.79		0.79		0.61		90.2

0.38			2,535	1.64		–		0.16		59.1
6.44			2,889	1.64		–		(0.59	)	69.2
7.62			2,079	1.64		–		(0.60	)	67.6
40.21			2,401	1.64		–		(0.11	)	95.2
12.30			2,001	1.64		–		(0.10	)	90.2

0.48			11,107	1.51		–		0.05		59.1
6.60			4,161	1.51		–		(0.47	)	69.2
7.78			2,956	1.51		–		(0.47	)	67.6
40.35			3,018	1.51		–		0.01		95.2
12.50			2,852	1.51		–		(0.05	)	90.2

0.67			12,944	1.33		–		0.45		59.1
6.79			9,368	1.33		–		(0.28	)	69.2
7.96			6,628	1.33		–		(0.28	)	67.6
40.62			6,143	1.33		–		0.18		95.2
12.69			4,907	1.33		–		0.22		90.2

0.89			13,799	1.14		–		0.57		59.1
6.95			9,089	1.14		–		(0.08	)	69.2
8.16			4,052	1.14		–		(0.10	)	67.6
40.93			4,200	1.14		–		0.37		95.2
12.87			2,944	1.14		–		0.26		90.2

0.97			18,947	1.02		–		0.75		59.1
7.13			18,855	1.02		–		0.02		69.2
8.27			12,020	1.02		–		0.02		67.6
41.04			11,690	1.02		–		0.49		95.2
13.08			8,943	1.02		–		0.45		90.2

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):


			Net Asset					Net Realized				Distributions			Total
			Value,		Net Investment			and Unrealized		Total From		from			Dividends			Net Asset
			Beginning		Income			Gain (Loss) on		Investment		Realized			and			Value, End
			of Period		(Loss)(a)			Investments		Operations		Gains			Distributions			of Period
SMALLCAP GROWTH FUND I
Class J shares
2016		$	9.52	($	0.06	)	$	0.14	$	0.08	($	1.01	)	($	1.01	)	$	8.59
2015			11.70		(0.10	)		0.38		0.28		(2.46	)		(2.46	)		9.52
2014			12.63		(0.13	)		0.74		0.61		(1.54	)		(1.54	)		11.70
2013			9.94		(0.13	)		3.54		3.41		(0.72	)		(0.72	)		12.63
2012			9.56		(0.12	)		1.08		0.96		(0.58	)		(0.58	)		9.94
Institutional shares
2016			11.99		(0.04	)		0.19		0.15		(1.01	)		(1.01	)		11.13
2015			14.05		(0.07	)		0.47		0.40		(2.46	)		(2.46	)		11.99
2014			14.80		(0.08	)		0.87		0.79		(1.54	)		(1.54	)		14.05
2013			11.47		(0.09	)		4.14		4.05		(0.72	)		(0.72	)		14.80
2012			10.89		(0.07	)		1.23		1.16		(0.58	)		(0.58	)		11.47
R-1 shares
2016			10.39		(0.11	)		0.15		0.04		(1.01	)		(1.01	)		9.42
2015			12.59		(0.15	)		0.41		0.26		(2.46	)		(2.46	)		10.39
2014			13.52		(0.18	)		0.79		0.61		(1.54	)		(1.54	)		12.59
2013			10.63		(0.18	)		3.79		3.61		(0.72	)		(0.72	)		13.52
2012			10.22		(0.16	)		1.15		0.99		(0.58	)		(0.58	)		10.63
R-2 shares
2016			10.13		(0.10	)		0.15		0.05		(1.01	)		(1.01	)		9.17
2015			12.32		(0.13	)		0.40		0.27		(2.46	)		(2.46	)		10.13
2014			13.25		(0.16	)		0.77		0.61		(1.54	)		(1.54	)		12.32
2013			10.42		(0.16	)		3.71		3.55		(0.72	)		(0.72	)		13.25
2012			10.01		(0.14	)		1.13		0.99		(0.58	)		(0.58	)		10.42
R-3 shares
2016			10.59		(0.09	)		0.16		0.07		(1.01	)		(1.01	)		9.65
2015			12.75		(0.12	)		0.42		0.30		(2.46	)		(2.46	)		10.59
2014			13.64		(0.15	)		0.80		0.65		(1.54	)		(1.54	)		12.75
2013			10.68		(0.15	)		3.83		3.68		(0.72	)		(0.72	)		13.64
2012			10.24		(0.13	)		1.15		1.02		(0.58	)		(0.58	)		10.68
R-4 shares
2016			11.07		(0.08	)		0.17		0.09		(1.01	)		(1.01	)		10.15
2015			13.19		(0.10	)		0.44		0.34		(2.46	)		(2.46	)		11.07
2014			14.04		(0.13	)		0.82		0.69		(1.54	)		(1.54	)		13.19
2013			10.96		(0.13	)		3.93		3.80		(0.72	)		(0.72	)		14.04
2012			10.46		(0.11	)		1.19		1.08		(0.58	)		(0.58	)		10.96
R-5 shares
2016			11.45		(0.07	)		0.18		0.11		(1.01	)		(1.01	)		10.55
2015			13.55		(0.09	)		0.45		0.36		(2.46	)		(2.46	)		11.45
2014			14.36		(0.11	)		0.84		0.73		(1.54	)		(1.54	)		13.55
2013			11.18		(0.11	)		4.01		3.90		(0.72	)		(0.72	)		14.36
2012			10.65		(0.10	)		1.21		1.11		(0.58	)		(0.58	)		11.18
R-6 shares
2016			11.98		(0.06	)		0.20		0.14		(1.01	)		(1.01	)		11.11
2015	(e)		14.24		(0.07	)		0.27		0.20		(2.46	)		(2.46	)		11.98


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


0.95%	(c)	$	47,535	1.35	%	1.45	%	(0.73	)%	57.1	%
3.12	(c)		52,609	1.46		1.56		(0.96	)	70.0
5.00	(c)		53,357	1.50		1.67		(1.09	)	66.1
36.73	(c)		30,644	1.56		1.78		(1.17	)	74.7
11.07	(c)		22,970	1.63		1.85		(1.20	)	79.9

1.36			1,292,151	1.02		1.10		(0.39	)	57.1
3.50			1,489,140	1.02		1.09		(0.52	)	70.0
5.52			1,707,451	1.02		1.09		(0.61	)	66.1
37.45			1,729,462	1.07		1.09		(0.68	)	74.7
11.58			1,329,439	1.08		1.10		(0.65	)	79.9

0.43			2,148	1.88	(d)	–		(1.24	)	57.1
2.64			2,974	1.88	(d)	–		(1.38	)	70.0
4.63			3,123	1.88	(d)	–		(1.47	)	66.1
36.19			2,783	1.94	(d)	–		(1.54	)	74.7
10.63			2,531	1.95	(d)	–		(1.52	)	79.9

0.55			4,491	1.75	(d)	–		(1.12	)	57.1
2.82			6,055	1.75	(d)	–		(1.25	)	70.0
4.74			6,581	1.75	(d)	–		(1.34	)	66.1
36.36			4,061	1.81	(d)	–		(1.41	)	74.7
10.86			3,100	1.82	(d)	–		(1.39	)	79.9

0.73			16,020	1.57	(d)	–		(0.94	)	57.1
2.99			20,155	1.57	(d)	–		(1.07	)	70.0
4.92			21,440	1.57	(d)	–		(1.16	)	66.1
36.70			18,858	1.63	(d)	–		(1.25	)	74.7
10.91			11,606	1.64	(d)	–		(1.21	)	79.9

0.90			12,216	1.38	(d)	–		(0.75	)	57.1
3.22			15,758	1.38	(d)	–		(0.89	)	70.0
5.07			16,819	1.38	(d)	–		(0.97	)	66.1
36.88			16,584	1.44	(d)	–		(1.05	)	74.7
11.27			12,347	1.45	(d)	–		(1.01	)	79.9

1.05			34,740	1.26	(d)	–		(0.64	)	57.1
3.31			36,955	1.26	(d)	–		(0.76	)	70.0
5.25			37,684	1.26	(d)	–		(0.85	)	66.1
37.05			31,647	1.32	(d)	–		(0.93	)	74.7
11.36			23,202	1.33	(d)	–		(0.90	)	79.9

1.27			605	1.06	(d)	–		(0.57	)	57.1
2.05	(f)		10	1.06 (d)	,(g)	–		(0.59	) (g)	70.0	(g)


				FINANCIAL HIGHLIGHTS
				PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

		Net Asset		Net		Net Realized				Dividends			Distributions			Total
		Value,		Investment		and Unrealized		Total From		from Net			from			Dividends			Net Asset
		Beginning		Income		Gain (Loss) on		Investment		Investment			Realized			and			Value, End
		of Period		(Loss)(a)		Investments		Operations		Income			Gains			Distributions			of Period
SMALLCAP S&P 600 INDEX FUND
Class J shares
2016	$	23.02	$	0.21	$	0.98	$	1.19	($	0.21	)	($	1.63	)	($	1.84	)	$	22.37
2015		24.36		0.22		0.28		0.50		(0.18	)		(1.66	)		(1.84	)		23.02
2014		23.10		0.17		1.80		1.97		(0.11	)		(0.60	)		(0.71	)		24.36
2013		16.90		0.17		6.21		6.38		(0.18	)		–			(0.18	)		23.10
2012		15.03		0.11		1.81		1.92		(0.05	)		–			(0.05	)		16.90
Institutional shares
2016		24.05		0.28		1.01		1.29		(0.27	)		(1.63	)		(1.90	)		23.44
2015		25.37		0.29		0.31		0.60		(0.26	)		(1.66	)		(1.92	)		24.05
2014		24.02		0.26		1.87		2.13		(0.18	)		(0.60	)		(0.78	)		25.37
2013		17.58		0.26		6.44		6.70		(0.26	)		–			(0.26	)		24.02
2012		15.63		0.19		1.88		2.07		(0.12	)		–			(0.12	)		17.58
R-1 shares
2016		23.67		0.09		1.01		1.10		(0.08	)		(1.63	)		(1.71	)		23.06
2015		24.99		0.09		0.31		0.40		(0.06	)		(1.66	)		(1.72	)		23.67
2014		23.71		0.05		1.84		1.89		(0.01	)		(0.60	)		(0.61	)		24.99
2013		17.35		0.09		6.38		6.47		(0.11	)		–			(0.11	)		23.71
2012		15.43		0.05		1.87		1.92		–			–			–			17.35
R-2 shares
2016		24.19		0.12		1.03		1.15		(0.09	)		(1.63	)		(1.72	)		23.62
2015		25.51		0.13		0.29		0.42		(0.08	)		(1.66	)		(1.74	)		24.19
2014		24.17		0.09		1.89		1.98		(0.04	)		(0.60	)		(0.64	)		25.51
2013		17.67		0.12		6.50		6.62		(0.12	)		–			(0.12	)		24.17
2012		15.70		0.07		1.90		1.97		–			–			–			17.67
R-3 shares
2016		24.36		0.17		1.03		1.20		(0.14	)		(1.63	)		(1.77	)		23.79
2015		25.68		0.17		0.31		0.48		(0.14	)		(1.66	)		(1.80	)		24.36
2014		24.34		0.13		1.90		2.03		(0.09	)		(0.60	)		(0.69	)		25.68
2013		17.82		0.15		6.55		6.70		(0.18	)		–			(0.18	)		24.34
2012		15.83		0.10		1.92		2.02		(0.03	)		–			(0.03	)		17.82
R-4 shares
2016		24.57		0.21		1.05		1.26		(0.19	)		(1.63	)		(1.82	)		24.01
2015		25.89		0.22		0.30		0.52		(0.18	)		(1.66	)		(1.84	)		24.57
2014		24.51		0.18		1.92		2.10		(0.12	)		(0.60	)		(0.72	)		25.89
2013		17.93		0.19		6.59		6.78		(0.20	)		–			(0.20	)		24.51
2012		15.94		0.13		1.93		2.06		(0.07	)		–			(0.07	)		17.93
R-5 shares
2016		24.69		0.24		1.05		1.29		(0.22	)		(1.63	)		(1.85	)		24.13
2015		25.99		0.25		0.31		0.56		(0.20	)		(1.66	)		(1.86	)		24.69
2014		24.61		0.21		1.92		2.13		(0.15	)		(0.60	)		(0.75	)		25.99
2013		18.00		0.22		6.61		6.83		(0.22	)		–			(0.22	)		24.61
2012		16.00		0.16		1.92		2.08		(0.08	)		–			(0.08	)		18.00


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


5.85%	(c)	$	149,939	0.47	%	0.50	%	0.97	%	20.7	%
2.28	(c)		139,090	0.49		0.54		0.92		19.9
8.66	(c)		145,647	0.56		0.60		0.71		19.0
38.11	(c)		140,138	0.61		0.81		0.88		14.6
12.81	(c)		98,085	0.68		0.87		0.65		16.0

6.07			558,869	0.21		–		1.24		20.7
2.61			573,165	0.20		0.20		1.20		19.9
9.05			471,425	0.20		0.20		1.06		19.0
38.62			384,824	0.21		0.21		1.24		14.6
13.36			203,079	0.20		0.25		1.12		16.0

5.22			12,570	1.04		–		0.40		20.7
1.75			11,924	1.04		–		0.37		19.9
8.10			14,480	1.04		–		0.23		19.0
37.53			14,560	1.04		–		0.43		14.6
12.44			9,183	1.04		–		0.28		16.0

5.35			16,157	0.91		–		0.54		20.7
1.84			15,006	0.91		–		0.51		19.9
8.31			19,359	0.91		–		0.36		19.0
37.71			19,526	0.91		–		0.57		14.6
12.55			14,892	0.91		–		0.42		16.0

5.54			119,969	0.73		–		0.72		20.7
2.05			127,893	0.73		–		0.68		19.9
8.46			135,744	0.73		–		0.53		19.0
37.91			106,891	0.73		–		0.73		14.6
12.78			58,655	0.73		–		0.59		16.0

5.75			76,916	0.54		–		0.92		20.7
2.22			84,632	0.54		–		0.87		19.9
8.71			87,241	0.54		–		0.73		19.0
38.20			84,904	0.54		–		0.92		14.6
12.99			47,925	0.54		–		0.78		16.0

5.86			184,384	0.42		–		1.02		20.7
2.38			178,942	0.42		–		0.99		19.9
8.79			191,185	0.42		–		0.85		19.0
38.36			197,548	0.42		–		1.04		14.6
13.09			108,147	0.42		–		0.92		16.0


					FINANCIAL HIGHLIGHTS
					PRINCIPAL FUNDS, INC.
Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

			Net Asset		Net			Net Realized						Dividends			Distributions			Total
			Value,		Investment			and Unrealized			Total From			from Net			from			Dividends			Net Asset
			Beginning		Income			Gain (Loss) on			Investment			Investment			Realized			and			Value, End
			of Period		(Loss)(a)			Investments			Operations			Income			Gains			Distributions			of Period
SMALLCAP VALUE FUND II
Class J shares
2016		$	12.49	$	0.02		$	0.43		$	0.45		($	0.03	)	($	1.25	)	($	1.28	)	$	11.66
2015			13.85		0.02			0.12			0.14			–			(1.50	)		(1.50	)		12.49
2014			13.56		(0.04	)		1.21			1.17			–			(0.88	)		(0.88	)		13.85
2013			10.02		0.03			3.58			3.61			(0.07	)		–			(0.07	)		13.56
2012			8.93		0.01			1.08			1.09			–			–			–			10.02
Institutional shares
2016			12.76		0.07			0.44			0.51			(0.08	)		(1.25	)		(1.33	)		11.94
2015			14.10		0.08			0.13			0.21			(0.05	)		(1.50	)		(1.55	)		12.76
2014			13.79		0.03			1.22			1.25			(0.06	)		(0.88	)		(0.94	)		14.10
2013			10.19		0.11			3.62			3.73			(0.13	)		–			(0.13	)		13.79
2012			9.06		0.08			1.09			1.17			(0.04	)		–			(0.04	)		10.19
R-1 shares
2016			11.88		(0.03	)		0.41			0.38			–			(1.25	)		(1.25	)		11.01
2015			13.30		(0.04	)		0.12			0.08			–			(1.50	)		(1.50	)		11.88
2014			13.10		(0.08	)		1.16			1.08			–			(0.88	)		(0.88	)		13.30
2013			9.69		0.01			3.45			3.46			(0.05	)		–			(0.05	)		13.10
2012			8.65		–			1.04			1.04			–			–			–			9.69
R-2 shares
2016			12.00		(0.02	)		0.42			0.40			–			(1.25	)		(1.25	)		11.15
2015			13.40		(0.01	)		0.11			0.10			–			(1.50	)		(1.50	)		12.00
2014			13.18		(0.06	)		1.16			1.10			–			(0.88	)		(0.88	)		13.40
2013			9.74		0.03			3.47			3.50			(0.06	)		–			(0.06	)		13.18
2012			8.69		0.01			1.04			1.05			–			–			–			9.74
R-3 shares
2016			12.35		–			0.43			0.43			(0.02	)		(1.25	)		(1.27	)		11.51
2015			13.72		–			0.13			0.13			–			(1.50	)		(1.50	)		12.35
2014			13.46		(0.04	)		1.18			1.14			–			(0.88	)		(0.88	)		13.72
2013			9.93		0.04			3.55			3.59			(0.06	)		–			(0.06	)		13.46
2012			8.84		0.02			1.07			1.09			–			–			–			9.93
R-4 shares
2016			12.48		0.03			0.43			0.46			(0.04	)		(1.25	)		(1.29	)		11.65
2015			13.83		0.03			0.12			0.15			–			(1.50	)		(1.50	)		12.48
2014			13.54		(0.02	)		1.21			1.19			(0.02	)		(0.88	)		(0.90	)		13.83
2013			10.00		0.07			3.56			3.63			(0.09	)		–			(0.09	)		13.54
2012			8.90		0.04			1.08			1.12			(0.02	)		–			(0.02	)		10.00
R-5 shares
2016			12.59		0.04			0.44			0.48			(0.05	)		(1.25	)		(1.30	)		11.77
2015			13.93		0.04			0.13			0.17			(0.01	)		(1.50	)		(1.51	)		12.59
2014			13.64		–			1.20			1.20			(0.03	)		(0.88	)		(0.91	)		13.93
2013			10.08		0.08			3.59			3.67			(0.11	)		–			(0.11	)		13.64
2012			8.96		0.06			1.08			1.14			(0.02	)		–			(0.02	)		10.08
R-6 shares
2016			12.75		0.03			0.48			0.51			(0.08	)		(1.25	)		(1.33	)		11.93
2015	(f)		14.36		0.07			(0.13	)		(0.06	)		(0.05	)		(1.50	)		(1.55	)		12.75


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.



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


4.33%	(c)	$	18,069	1.41	%	1.46	%	0.18	%	52.5	%
1.16	(c)		18,937	1.45		1.50		0.12		47.8
8.97	(c)		19,885	1.48		1.54		(0.27	)	42.1
36.19	(c)		18,556	1.63		1.85		0.23		60.5
12.21	(c)		11,655	1.70		1.92		0.11		53.5

4.82			1,144,250	0.99		1.01		0.60		52.5
1.64			1,251,443	0.98		1.00		0.60		47.8
9.47			1,489,023	0.97		0.99		0.25		42.1
37.05			1,475,200	0.98		1.00		0.93		60.5
13.00			1,046,022	0.99		1.01		0.83		53.5

3.93			1,434	1.85	(d)	–		(0.26	)	52.5
0.70			1,761	1.85	(d)	–		(0.29	)	47.8
8.57			1,870	1.84	(d)	–		(0.62	)	42.1
35.82			2,106	1.85	(d)	–		0.07		60.5
12.02			1,901	1.86	(d)	–		(0.05	)	53.5

3.98	(e)		3,735	1.72	(d)	–		(0.14	)	52.5
0.95	(e)		3,666	1.72	(d)	–		(0.12	)	47.8
8.68			4,588	1.71	(d)	–		(0.48	)	42.1
36.09			6,141	1.72	(d)	–		0.24		60.5
12.08			5,677	1.73	(d)	–		0.08		53.5

4.23			13,501	1.54	(d)	–		0.03		52.5
1.08			11,887	1.54	(d)	–		0.01		47.8
8.84			11,532	1.53	(d)	–		(0.31	)	42.1
36.35			11,825	1.54	(d)	–		0.37		60.5
12.33			8,601	1.55	(d)	–		0.26		53.5

4.43			7,570	1.35	(d)	–		0.25		52.5
1.24			12,024	1.35	(d)	–		0.23		47.8
9.13			13,254	1.34	(d)	–		(0.13	)	42.1
36.58			11,430	1.35	(d)	–		0.58		60.5
12.56			9,258	1.36	(d)	–		0.44		53.5

4.60			23,856	1.23	(d)	–		0.35		52.5
1.41			22,508	1.23	(d)	–		0.34		47.8
9.16			22,406	1.22	(d)	–		(0.01	)	42.1
36.78			21,954	1.23	(d)	–		0.72		60.5
12.69			19,962	1.24	(d)	–		0.60		53.5

4.82			3,511	1.01	(d)	–		0.28		52.5
(0.27	) (g)		10	1.01 (d)	,(h)	–		0.55	(h)	47.8	(h)

Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted):

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, California Municipal Fund, Core Plus Bond Fund, Diversified International Fund, Equity Income Fund, Finisterre Unconstrained Emerging Markets Bond Fund, Global Diversified Income Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, High Yield Fund, High Yield Fund I, Income Fund, Inflation Protection Fund, International Emerging Markets Fund, International Fund I, LargeCap Growth Fund, LargeCap Growth Fund I, LargeCap Growth Fund II, LargeCap S&P 500 Index Fund, LargeCap Value Fund, LargeCap Value Fund III, MidCap Fund, MidCap Growth Fund, MidCap Growth Fund III, MidCap S&P 400 Index Fund, MidCap Value Fund I, MidCap Value Fund III, Money Market Fund, Overseas Fund, Principal Capital Appreciation Fund, Principal LifeTime 2010 Fund, Principal LifeTime 2015 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2025 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2035 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2045 Fund, Principal LifeTime 2050 Fund, Principal LifeTime 2055 Fund, Principal LifeTime 2060 Fund, Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hybrid 2060 Fund, Principal LifeTime Hybrid Income Fund, Principal LifeTime Strategic Income Fund, Real Estate Securities Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Fund, SmallCap Fund, SmallCap Growth Fund I, SmallCap S&P 600 Index Fund, SmallCap Value Fund II and Tax-Exempt Bond Fund (64 of the portfolios constituting the Principal Funds, Inc. (collectively the “Funds”)) as of October 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 October 31, 2016, by correspondence with the custodian, agent banks, brokers and transfer agents 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 October 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.
October 31, 2016 (unaudited)

As a shareholder of Principal Funds, Inc., you incur two types of costs: (1) transaction costs (for Class J shares only), including contingent deferred sales charges; and (2) ongoing costs, including management fees; distribution fees (for certain share classes); and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Principal Funds, Inc. and to compare these costs with the ongoing costs of investing in other mutual funds. As a shareholder of Principal LifeTime 2010 Fund, Principal LifeTime 2015 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2025 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2035 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2045 Fund, Principal LifeTime 2050 Fund, Principal LifeTime 2055 Fund, Principal LifeTime 2060 Fund, Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hybrid 2060 Fund, Principal LifeTime Hybrid Income Fund, Principal LifeTime Strategic Income Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, or SAM Strategic Growth Portfolio, your fund will indirectly bear its pro rata share of the expenses incurred by the investment companies in which the fund invests. These expenses are not included in the fund’s annualized expense ratio used to calculate the expenses paid in this example. If they were, the expenses paid would be higher.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2016 to October 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. An annual fee of $15.00 or $30.00 may apply to IRA or 403(b) accounts within Class J shares, respectively. R-1, R-2, R-3, R-4, R-5 and R-6 classes of shares may be purchased only through retirement plans. Such plans 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 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.


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	Diversified International Fund
	Class J	$	1,000.00	$	1,011.71	$	5.92		$	1,000.00	$	1,019.25	$	5.94	1.17	%
	Institutional		1,000.00		1,013.43		4.30			1,000.00		1,020.86		4.32	0.85
R	-1		1,000.00		1,008.94		8.69			1,000.00		1,016.49		8.72	1.72
R	-2		1,000.00		1,009.87		8.03			1,000.00		1,017.14		8.06	1.59
R	-3		1,000.00		1,010.74		7.13			1,000.00		1,018.05		7.15	1.41
R	-4		1,000.00		1,012.37		6.17			1,000.00		1,019.00		6.19	1.22
R	-5		1,000.00		1,013.29		5.57			1,000.00		1,019.61		5.58	1.10

	Equity Income Fund
	Institutional		1,000.00		1,040.89		2.67			1,000.00		1,022.52		2.64	0.52
R	-1		1,000.00		1,036.47		7.12			1,000.00		1,018.15		7.05	1.39
R	-2		1,000.00		1,037.00		6.45			1,000.00		1,018.80		6.39	1.26
R	-3		1,000.00		1,038.09		5.53			1,000.00		1,019.71		5.48	1.08
R	-4		1,000.00		1,038.60		4.56			1,000.00		1,020.66		4.52	0.89
R	-5		1,000.00		1,039.63		3.95			1,000.00		1,021.27		3.91	0.77

	Finisterre Unconstrained Emerging
	Markets Bond Fund
	Institutional		1,000.00		1,026.57		3.47	^(b)		1,000.00		1,019.51		5.69	1.12

	Global Diversified Income Fund
	Institutional		1,000.00		1,053.60		4.65			1,000.00		1,020.61		4.57	0.90

	Global Diversified Income Fund (Excluding
	Dividends and Interest Expense on Short Sales
	and Short Sale Fees)
	Institutional		1,000.00		1,053.60		4.03			1,000.00		1,021.17		3.97	0.78

	Global Real Estate Securities Fund
	Institutional		1,000.00		988.24		4.50			1,000.00		1,020.61		4.57	0.90
R	-3		1,000.00		986.15		7.14			1,000.00		1,017.95		7.25	1.43
R	-4		1,000.00		986.90		6.19			1,000.00		1,018.90		6.29	1.24
R	-5		1,000.00		988.24		5.60			1,000.00		1,019.51		5.69	1.12
R	-6		1,000.00		986.87		4.69			1,000.00		1,020.41		4.77	0.94

	Government & High Quality Bond Fund
	Class J		1,000.00		1,009.72		4.24			1,000.00		1,020.91		4.27	0.84
	Institutional		1,000.00		1,011.30		2.68			1,000.00		1,022.47		2.69	0.53
R	-1		1,000.00		1,007.46		6.51			1,000.00		1,018.65		6.55	1.29
R	-2		1,000.00		1,009.04		5.86			1,000.00		1,019.30		5.89	1.16
R	-3		1,000.00		1,009.95		4.95			1,000.00		1,020.21		4.98	0.98
R	-4		1,000.00		1,009.98		3.99			1,000.00		1,021.17		4.01	0.79
R	-5		1,000.00		1,010.58		3.39			1,000.00		1,021.77		3.40	0.67

	High Yield Fund
	Institutional		1,000.00		1,067.22		3.17			1,000.00		1,022.07		3.10	0.61

	High Yield Fund I
	Institutional		1,000.00		1,061.18		3.42			1,000.00		1,021.82		3.35	0.66

	Income Fund
	Class J		1,000.00		1,029.78		4.03			1,000.00		1,021.17		4.01	0.79
	Institutional		1,000.00		1,030.22		2.50			1,000.00		1,022.67		2.49	0.49
R	-1		1,000.00		1,026.82		6.93			1,000.00		1,018.30		6.90	1.36
R	-2		1,000.00		1,027.46		6.27			1,000.00		1,018.95		6.24	1.23
R	-3		1,000.00		1,028.37		5.35			1,000.00		1,019.86		5.33	1.05
R	-4		1,000.00		1,028.29		4.38			1,000.00		1,020.81		4.37	0.86
R	-5		1,000.00		1,030.03		3.78			1,000.00		1,021.42		3.76	0.74
R	-6		1,000.00		1,030.23		2.81			1,000.00		1,022.37		2.80	0.55

	Inflation Protection Fund
	Class J		1,000.00		1,016.91		5.73			1,000.00		1,019.46		5.74	1.13
	Institutional		1,000.00		1,021.08		1.93			1,000.00		1,023.23		1.93	0.38
R	-1		1,000.00		1,015.93		6.38			1,000.00		1,018.80		6.39	1.26
R	-2		1,000.00		1,017.05		5.73			1,000.00		1,019.46		5.74	1.13
R	-3		1,000.00		1,018.09		4.82			1,000.00		1,020.36		4.82	0.95
R	-4		1,000.00		1,017.92		3.85			1,000.00		1,021.32		3.86	0.76
R	-5		1,000.00		1,018.98		3.25			1,000.00		1,021.92		3.25	0.64


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	International Emerging Markets Fund
	Class J	$	1,000.00	$	1,100.35	$	8.55		$	1,000.00	$	1,016.99	$	8.21	1.62	%
	Institutional		1,000.00		1,102.00		6.76			1,000.00		1,018.70		6.50	1.28
R	-1		1,000.00		1,097.94		11.23			1,000.00		1,014.43		10.79	2.13
R	-2		1,000.00		1,098.47		10.55			1,000.00		1,015.08		10.13	2.00
R	-3		1,000.00		1,099.36		9.60			1,000.00		1,015.99		9.22	1.82
R	-4		1,000.00		1,100.39		8.61			1,000.00		1,016.94		8.26	1.63
R	-5		1,000.00		1,101.32		7.98			1,000.00		1,017.55		7.66	1.51

	International Fund I
	Institutional		1,000.00		1,039.65		5.23			1,000.00		1,020.01		5.18	1.02
R	-1		1,000.00		1,035.06		9.57			1,000.00		1,015.74		9.48	1.87
R	-2		1,000.00		1,035.69		8.90			1,000.00		1,016.39		8.82	1.74
R	-3		1,000.00		1,036.54		7.99			1,000.00		1,017.29		7.91	1.56
R	-4		1,000.00		1,038.13		7.02			1,000.00		1,018.25		6.95	1.37
R	-5		1,000.00		1,038.16		6.40			1,000.00		1,018.85		6.34	1.25

	LargeCap Growth Fund
	Class J		1,000.00		1,014.79		4.71			1,000.00		1,020.46		4.72	0.93
	Institutional		1,000.00		1,015.40		3.29			1,000.00		1,021.87		3.30	0.65
R	-1		1,000.00		1,011.21		7.68			1,000.00		1,017.50		7.71	1.52
R	-2		1,000.00		1,012.11		7.03			1,000.00		1,018.15		7.05	1.39
R	-3		1,000.00		1,013.05		6.12			1,000.00		1,019.05		6.14	1.21
R	-4		1,000.00		1,014.11		5.16			1,000.00		1,020.01		5.18	1.02
R	-5		1,000.00		1,014.26		4.56			1,000.00		1,020.61		4.57	0.90

	LargeCap Growth Fund I
	Class J		1,000.00		1,037.56		4.25			1,000.00		1,020.96		4.22	0.83
	Institutional		1,000.00		1,037.96		3.18			1,000.00		1,022.02		3.15	0.62
R	-1		1,000.00		1,033.88		7.52			1,000.00		1,017.75		7.46	1.47
R	-2		1,000.00		1,034.69		6.85			1,000.00		1,018.40		6.80	1.34
R	-3		1,000.00		1,036.18		5.94			1,000.00		1,019.30		5.89	1.16
R	-4		1,000.00		1,036.66		4.97			1,000.00		1,020.26		4.93	0.97
R	-5		1,000.00		1,037.37		4.35			1,000.00		1,020.86		4.32	0.85
R	-6		1,000.00		1,038.00		3.33			1,000.00		1,021.87		3.30	0.65

	LargeCap Growth Fund II
	Class J		1,000.00		1,023.44		6.21			1,000.00		1,019.00		6.19	1.22
	Institutional		1,000.00		1,024.68		4.33			1,000.00		1,020.86		4.32	0.85
R	-1		1,000.00		1,019.80		8.78			1,000.00		1,016.44		8.77	1.73
R	-2		1,000.00		1,020.83		8.13			1,000.00		1,017.09		8.11	1.60
R	-3		1,000.00		1,021.46		7.22			1,000.00		1,018.00		7.20	1.42
R	-4		1,000.00		1,021.95		6.25			1,000.00		1,018.95		6.24	1.23
R	-5		1,000.00		1,021.59		5.64			1,000.00		1,019.56		5.63	1.11

	LargeCap S&P 500 Index Fund
	Class J		1,000.00		1,038.35		2.05			1,000.00		1,023.13		2.03	0.40
	Institutional		1,000.00		1,039.42		0.82			1,000.00		1,024.33		0.81	0.16
R	-1		1,000.00		1,035.37		5.27			1,000.00		1,019.96		5.23	1.03
R	-2		1,000.00		1,035.81		4.61			1,000.00		1,020.61		4.57	0.90
R	-3		1,000.00		1,036.58		3.69			1,000.00		1,021.52		3.66	0.72
R	-4		1,000.00		1,037.88		2.71			1,000.00		1,022.47		2.69	0.53
R	-5		1,000.00		1,038.25		2.10			1,000.00		1,023.08		2.08	0.41

	LargeCap Value Fund
	Class J		1,000.00		1,007.16		3.58			1,000.00		1,021.57		3.61	0.71
	Institutional		1,000.00		1,008.80		2.17			1,000.00		1,022.97		2.19	0.43
R	-1		1,000.00		1,003.55		6.55			1,000.00		1,018.60		6.60	1.30
R	-2		1,000.00		1,004.41		5.89			1,000.00		1,019.25		5.94	1.17
R	-3		1,000.00		1,006.21		4.99			1,000.00		1,020.16		5.03	0.99
R	-4		1,000.00		1,006.21		4.03			1,000.00		1,021.11		4.06	0.80
R	-5		1,000.00		1,007.91		3.43			1,000.00		1,021.72		3.46	0.68


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	LargeCap Value Fund III
	Class J	$	1,000.00	$	1,028.33	$	5.40		$	1,000.00	$	1,019.81	$	5.38	1.06	%
	Institutional		1,000.00		1,030.05		3.88			1,000.00		1,021.32		3.86	0.76
R	-1		1,000.00		1,026.03		8.35			1,000.00		1,016.89		8.31	1.64
R	-2		1,000.00		1,026.64		7.69			1,000.00		1,017.55		7.66	1.51
R	-3		1,000.00		1,027.65		6.78			1,000.00		1,018.45		6.75	1.33
R	-4		1,000.00		1,028.71		5.81			1,000.00		1,019.41		5.79	1.14
R	-5		1,000.00		1,028.49		5.20			1,000.00		1,020.01		5.18	1.02

	MidCap Fund
	Class J		1,000.00		1,045.25		4.16			1,000.00		1,021.06		4.12	0.81
	Institutional		1,000.00		1,046.16		3.50			1,000.00		1,021.72		3.46	0.68
R	-1		1,000.00		1,041.67		7.54			1,000.00		1,017.75		7.46	1.47
R	-2		1,000.00		1,042.17		6.88			1,000.00		1,018.40		6.80	1.34
R	-3		1,000.00		1,043.39		5.96			1,000.00		1,019.30		5.89	1.16
R	-4		1,000.00		1,044.40		4.98			1,000.00		1,020.26		4.93	0.97
R	-5		1,000.00		1,044.72		4.37			1,000.00		1,020.86		4.32	0.85

	MidCap Growth Fund
	Class J		1,000.00		1,035.78		4.81			1,000.00		1,020.41		4.77	0.94
	Institutional		1,000.00		1,036.14		3.84			1,000.00		1,021.37		3.81	0.75
R	-1		1,000.00		1,032.37		7.87			1,000.00		1,017.39		7.81	1.54
R	-2		1,000.00		1,031.88		7.20			1,000.00		1,018.05		7.15	1.41
R	-3		1,000.00		1,031.70		6.28			1,000.00		1,018.95		6.24	1.23
R	-4		1,000.00		1,034.74		5.32			1,000.00		1,019.91		5.28	1.04
R	-5		1,000.00		1,033.53		4.70			1,000.00		1,020.51		4.67	0.92

	MidCap Growth Fund III
	Class J		1,000.00		1,007.33		6.51			1,000.00		1,018.65		6.55	1.29
	Institutional		1,000.00		1,008.24		4.75			1,000.00		1,020.41		4.77	0.94
R	-1		1,000.00		1,004.81		9.12			1,000.00		1,016.04		9.17	1.81
R	-2		1,000.00		1,004.64		8.47			1,000.00		1,016.69		8.52	1.68
R	-3		1,000.00		1,005.40		7.56			1,000.00		1,017.60		7.61	1.50
R	-4		1,000.00		1,006.34		6.61			1,000.00		1,018.55		6.65	1.31
R	-5		1,000.00		1,007.13		6.00			1,000.00		1,019.15		6.04	1.19

	MidCap S&P 400 Index Fund
	Class J		1,000.00		1,037.90		2.61			1,000.00		1,022.57		2.59	0.51
	Institutional		1,000.00		1,039.74		1.03			1,000.00		1,024.13		1.02	0.20
R	-1		1,000.00		1,035.73		5.27			1,000.00		1,019.96		5.23	1.03
R	-2		1,000.00		1,036.32		4.61			1,000.00		1,020.61		4.57	0.90
R	-3		1,000.00		1,037.00		3.69			1,000.00		1,021.52		3.66	0.72
R	-4		1,000.00		1,037.99		2.72			1,000.00		1,022.47		2.69	0.53
R	-5		1,000.00		1,038.77		2.10			1,000.00		1,023.08		2.08	0.41

	MidCap Value Fund I
	Class J		1,000.00		1,032.51		6.18			1,000.00		1,019.05		6.14	1.21
	Institutional		1,000.00		1,033.78		4.70			1,000.00		1,020.51		4.67	0.92
R	-1		1,000.00		1,029.39		8.98			1,000.00		1,016.29		8.92	1.76
R	-2		1,000.00		1,030.77		8.32			1,000.00		1,016.94		8.26	1.63
R	-3		1,000.00		1,031.08		7.40			1,000.00		1,017.85		7.35	1.45
R	-4		1,000.00		1,032.59		6.44			1,000.00		1,018.80		6.39	1.26
R	-5		1,000.00		1,033.23		5.83			1,000.00		1,019.41		5.79	1.14

	MidCap Value Fund III
	Class J		1,000.00		1,015.11		4.61			1,000.00		1,020.56		4.62	0.91
	Institutional		1,000.00		1,016.45		3.29			1,000.00		1,021.87		3.30	0.65
R	-1		1,000.00		1,012.15		7.64			1,000.00		1,017.55		7.66	1.51
R	-2		1,000.00		1,012.62		6.98			1,000.00		1,018.20		7.00	1.38
R	-3		1,000.00		1,013.88		6.07			1,000.00		1,019.10		6.09	1.20
R	-4		1,000.00		1,014.59		5.11			1,000.00		1,020.06		5.13	1.01
R	-5		1,000.00		1,015.62		4.51			1,000.00		1,020.66		4.52	0.89
R	-6		1,000.00		1,016.45		3.50			1,000.00		1,021.67		3.51	0.69

	Money Market Fund
	Class J		1,000.00		1,000.00		2.92			1,000.00		1,022.22		2.95	0.58
	Institutional		1,000.00		1,000.53		2.16			1,000.00		1,022.97		2.19	0.43


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	Overseas Fund
	Institutional	$	1,000.00	$	1,001.06	$	5.33		$	1,000.00	$	1,019.81	$	5.38	1.06	%
R	-1		1,000.00		996.78		9.69			1,000.00		1,015.43		9.78	1.93
R	-2		1,000.00		996.79		9.03			1,000.00		1,016.09		9.12	1.80
R	-3		1,000.00		998.93		8.14			1,000.00		1,016.99		8.21	1.62
R	-4		1,000.00		998.93		7.19			1,000.00		1,017.95		7.25	1.43
R	-5		1,000.00		1,000.00		6.59			1,000.00		1,018.55		6.65	1.31

	Principal Capital Appreciation Fund
	Institutional		1,000.00		1,029.34		2.40			1,000.00		1,022.77		2.39	0.47
R	-1		1,000.00		1,024.79		6.77			1,000.00		1,018.45		6.75	1.33
R	-2		1,000.00		1,025.62		6.11			1,000.00		1,019.10		6.09	1.20
R	-3		1,000.00		1,026.37		5.20			1,000.00		1,020.01		5.18	1.02
R	-4		1,000.00		1,027.43		4.23			1,000.00		1,020.96		4.22	0.83
R	-5		1,000.00		1,028.07		3.62			1,000.00		1,021.57		3.61	0.71

	Principal LifeTime 2010 Fund
	Class J		1,000.00		1,024.84		1.07			1,000.00		1,024.08		1.07	0.21
	Institutional		1,000.00		1,026.32		0.15			1,000.00		1,024.99		0.15	0.03
R	-1		1,000.00		1,021.76		4.57			1,000.00		1,020.61		4.57	0.90
R	-2		1,000.00		1,021.76		3.91			1,000.00		1,021.27		3.91	0.77
R	-3		1,000.00		1,022.60		3.00			1,000.00		1,022.17		3.00	0.59
R	-4		1,000.00		1,023.33		2.03			1,000.00		1,023.13		2.03	0.40
R	-5		1,000.00		1,024.86		1.43			1,000.00		1,023.73		1.42	0.28

	Principal LifeTime 2015 Fund
	Institutional		1,000.00		1,026.24		0.05			1,000.00		1,025.09		0.05	0.01
R	-1		1,000.00		1,021.67		4.47			1,000.00		1,020.71		4.47	0.88
R	-2		1,000.00		1,022.63		3.81			1,000.00		1,021.37		3.81	0.75
R	-3		1,000.00		1,023.69		2.90			1,000.00		1,022.27		2.90	0.57
R	-4		1,000.00		1,025.59		1.93			1,000.00		1,023.23		1.93	0.38
R	-5		1,000.00		1,025.54		1.32			1,000.00		1,023.83		1.32	0.26

	Principal LifeTime 2020 Fund
	Class J		1,000.00		1,025.40		0.97			1,000.00		1,024.18		0.97	0.19
	Institutional		1,000.00		1,026.82		0.05			1,000.00		1,025.09		0.05	0.01
R	-1		1,000.00		1,022.36		4.52			1,000.00		1,020.66		4.52	0.89
R	-2		1,000.00		1,023.18		3.87			1,000.00		1,021.32		3.86	0.76
R	-3		1,000.00		1,023.98		2.95			1,000.00		1,022.22		2.95	0.58
R	-4		1,000.00		1,024.69		1.98			1,000.00		1,023.18		1.98	0.39
R	-5		1,000.00		1,025.40		1.37			1,000.00		1,023.78		1.37	0.27

	Principal LifeTime 2025 Fund
	Institutional		1,000.00		1,026.37		0.05			1,000.00		1,025.09		0.05	0.01
R	-1		1,000.00		1,021.91		4.47			1,000.00		1,020.71		4.47	0.88
R	-2		1,000.00		1,022.89		3.81			1,000.00		1,021.37		3.81	0.75
R	-3		1,000.00		1,023.86		2.90			1,000.00		1,022.27		2.90	0.57
R	-4		1,000.00		1,024.65		1.93			1,000.00		1,023.23		1.93	0.38
R	-5		1,000.00		1,025.54		1.32			1,000.00		1,023.83		1.32	0.26

	Principal LifeTime 2030 Fund
	Class J		1,000.00		1,023.72		1.02			1,000.00		1,024.13		1.02	0.20
	Institutional		1,000.00		1,025.19		0.05			1,000.00		1,025.09		0.05	0.01
R	-1		1,000.00		1,020.75		4.52			1,000.00		1,020.66		4.52	0.89
R	-2		1,000.00		1,020.71		3.86			1,000.00		1,021.32		3.86	0.76
R	-3		1,000.00		1,022.22		2.95			1,000.00		1,022.22		2.95	0.58
R	-4		1,000.00		1,023.05		1.98			1,000.00		1,023.18		1.98	0.39
R	-5		1,000.00		1,023.68		1.37			1,000.00		1,023.78		1.37	0.27

	Principal LifeTime 2035 Fund
	Institutional		1,000.00		1,022.24		0.05			1,000.00		1,025.09		0.05	0.01
R	-1		1,000.00		1,016.95		4.46			1,000.00		1,020.71		4.47	0.88
R	-2		1,000.00		1,017.92		3.80			1,000.00		1,021.37		3.81	0.75
R	-3		1,000.00		1,019.74		2.89			1,000.00		1,022.27		2.90	0.57
R	-4		1,000.00		1,019.61		1.93			1,000.00		1,023.23		1.93	0.38
R	-5		1,000.00		1,021.42		1.32			1,000.00		1,023.83		1.32	0.26


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	Principal LifeTime 2040 Fund
	Class J	$	1,000.00	$	1,021.17	$	1.12		$	1,000.00	$	1,024.03	$	1.12	0.22	%
	Institutional		1,000.00		1,021.74		0.10			1,000.00		1,025.04		0.10	0.02
R	-1		1,000.00		1,017.54		4.51			1,000.00		1,020.66		4.52	0.89
R	-2		1,000.00		1,018.27		3.86			1,000.00		1,021.32		3.86	0.76
R	-3		1,000.00		1,019.06		2.94			1,000.00		1,022.22		2.95	0.58
R	-4		1,000.00		1,020.50		1.98			1,000.00		1,023.18		1.98	0.39
R	-5		1,000.00		1,020.38		1.37			1,000.00		1,023.78		1.37	0.27

	Principal LifeTime 2045 Fund
	Institutional		1,000.00		1,022.73		0.10			1,000.00		1,025.04		0.10	0.02
R	-1		1,000.00		1,017.72		4.46			1,000.00		1,020.71		4.47	0.88
R	-2		1,000.00		1,017.74		3.80			1,000.00		1,021.37		3.81	0.75
R	-3		1,000.00		1,019.48		2.89			1,000.00		1,022.27		2.90	0.57
R	-4		1,000.00		1,020.28		1.93			1,000.00		1,023.23		1.93	0.38
R	-5		1,000.00		1,020.24		1.32			1,000.00		1,023.83		1.32	0.26

	Principal LifeTime 2050 Fund
	Class J		1,000.00		1,020.59		1.78			1,000.00		1,023.38		1.78	0.35
	Institutional		1,000.00		1,022.32		0.10			1,000.00		1,025.04		0.10	0.02
R	-1		1,000.00		1,018.03		4.51			1,000.00		1,020.66		4.52	0.89
R	-2		1,000.00		1,018.80		3.86			1,000.00		1,021.32		3.86	0.76
R	-3		1,000.00		1,019.55		2.94			1,000.00		1,022.22		2.95	0.58
R	-4		1,000.00		1,020.96		1.98			1,000.00		1,023.18		1.98	0.39
R	-5		1,000.00		1,020.91		1.37			1,000.00		1,023.78		1.37	0.27

	Principal LifeTime 2055 Fund
	Institutional		1,000.00		1,022.05		0.15			1,000.00		1,024.99		0.15	0.03
R	-1		1,000.00		1,018.17		4.46			1,000.00		1,020.71		4.47	0.88
R	-2		1,000.00		1,019.04		3.81			1,000.00		1,021.37		3.81	0.75
R	-3		1,000.00		1,019.82		2.89			1,000.00		1,022.27		2.90	0.57
R	-4		1,000.00		1,020.59		1.93			1,000.00		1,023.23		1.93	0.38
R	-5		1,000.00		1,021.41		1.32			1,000.00		1,023.83		1.32	0.26

	Principal LifeTime 2060 Fund
	Class J		1,000.00		1,020.65		1.93			1,000.00		1,023.23		1.93	0.38
	Institutional		1,000.00		1,022.28		0.25			1,000.00		1,024.89		0.25	0.05
R	-1		1,000.00		1,018.32		4.52			1,000.00		1,020.66		4.52	0.89
R	-2		1,000.00		1,019.13		3.81			1,000.00		1,021.37		3.81	0.75
R	-3		1,000.00		1,019.84		2.89			1,000.00		1,022.27		2.90	0.57
R	-4		1,000.00		1,020.71		1.93			1,000.00		1,023.23		1.93	0.38
R	-5		1,000.00		1,021.53		1.32			1,000.00		1,023.83		1.32	0.26

	Principal LifeTime Hybrid 2015 Fund
	Institutional		1,000.00		1,025.48		0.25			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,025.48		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2020 Fund
	Institutional		1,000.00		1,026.40		0.25			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,026.40		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2025 Fund
	Institutional		1,000.00		1,027.41		0.25			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,027.38		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2030 Fund
	Institutional		1,000.00		1,028.34		0.25			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,028.34		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2035 Fund
	Institutional		1,000.00		1,029.32		0.26			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,029.32		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2040 Fund
	Institutional		1,000.00		1,030.30		0.26			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,029.26		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2045 Fund
	Institutional		1,000.00		1,030.36		0.26			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,030.36		0.10			1,000.00		1,025.04		0.10	0.02


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	Principal LifeTime Hybrid 2050 Fund
	Institutional	$	1,000.00	$	1,030.27	$	0.26		$	1,000.00	$	1,024.89	$	0.25	0.05	%
R	-6		1,000.00		1,031.31		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2055 Fund
	Institutional		1,000.00		1,031.28		0.26			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,032.29		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid 2060 Fund
	Institutional		1,000.00		1,031.28		0.26			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,031.25		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Hybrid Income Fund
	Institutional		1,000.00		1,021.36		0.25			1,000.00		1,024.89		0.25	0.05
R	-6		1,000.00		1,021.34		0.10			1,000.00		1,025.04		0.10	0.02

	Principal LifeTime Strategic Income Fund
	Class J		1,000.00		1,022.73		1.32			1,000.00		1,023.83		1.32	0.26
	Institutional		1,000.00		1,023.45		0.25			1,000.00		1,024.89		0.25	0.05
R	-1		1,000.00		1,019.25		4.67			1,000.00		1,020.51		4.67	0.92
R	-2		1,000.00		1,019.25		4.01			1,000.00		1,021.17		4.01	0.79
R	-3		1,000.00		1,021.11		3.10			1,000.00		1,022.07		3.10	0.61
R	-4		1,000.00		1,021.92		2.13			1,000.00		1,023.03		2.14	0.42
R	-5		1,000.00		1,022.63		1.53			1,000.00		1,023.63		1.53	0.30

	Real Estate Securities Fund
	Class J		1,000.00		1,012.07		5.72			1,000.00		1,019.46		5.74	1.13
	Institutional		1,000.00		1,013.83		4.40			1,000.00		1,020.76		4.42	0.87
R	-1		1,000.00		1,009.42		8.59			1,000.00		1,016.59		8.62	1.70
R	-2		1,000.00		1,010.10		7.93			1,000.00		1,017.24		7.96	1.57
R	-3		1,000.00		1,011.09		7.03			1,000.00		1,018.15		7.05	1.39
R	-4		1,000.00		1,012.26		6.07			1,000.00		1,019.10		6.09	1.20
R	-5		1,000.00		1,012.34		5.46			1,000.00		1,019.71		5.48	1.08

	SAM Balanced Portfolio
	Class J		1,000.00		1,029.01		2.55			1,000.00		1,022.62		2.54	0.50
	Institutional		1,000.00		1,030.19		1.58			1,000.00		1,023.58		1.58	0.31
R	-1		1,000.00		1,025.60		6.06			1,000.00		1,019.15		6.04	1.19
R	-2		1,000.00		1,026.43		5.40			1,000.00		1,019.81		5.38	1.06
R	-3		1,000.00		1,026.77		4.48			1,000.00		1,020.71		4.47	0.88
R	-4		1,000.00		1,028.25		3.52			1,000.00		1,021.67		3.51	0.69
R	-5		1,000.00		1,028.93		2.91			1,000.00		1,022.27		2.90	0.57

	SAM Conservative Balanced
	Portfolio
	Class J		1,000.00		1,027.88		2.55			1,000.00		1,022.62		2.54	0.50
	Institutional		1,000.00		1,028.72		1.63			1,000.00		1,023.53		1.63	0.32
R	-1		1,000.00		1,024.17		6.05			1,000.00		1,019.15		6.04	1.19
R	-2		1,000.00		1,024.55		5.39			1,000.00		1,019.81		5.38	1.06
R	-3		1,000.00		1,025.94		4.48			1,000.00		1,020.71		4.47	0.88
R	-4		1,000.00		1,026.78		3.52			1,000.00		1,021.67		3.51	0.69
R	-5		1,000.00		1,027.46		2.90			1,000.00		1,022.27		2.90	0.57

	SAM Conservative Growth Portfolio
	Class J		1,000.00		1,029.28		2.60			1,000.00		1,022.57		2.59	0.51
	Institutional		1,000.00		1,030.84		1.58			1,000.00		1,023.58		1.58	0.31
R	-1		1,000.00		1,026.15		6.06			1,000.00		1,019.15		6.04	1.19
R	-2		1,000.00		1,026.11		5.40			1,000.00		1,019.81		5.38	1.06
R	-3		1,000.00		1,027.41		4.48			1,000.00		1,020.71		4.47	0.88
R	-4		1,000.00		1,028.41		3.52			1,000.00		1,021.67		3.51	0.69
R	-5		1,000.00		1,029.10		2.91			1,000.00		1,022.27		2.90	0.57

	SAM Flexible Income Portfolio
	Class J		1,000.00		1,029.32		2.60			1,000.00		1,022.57		2.59	0.51
	Institutional		1,000.00		1,030.98		1.63			1,000.00		1,023.53		1.63	0.32
R	-1		1,000.00		1,025.92		6.06			1,000.00		1,019.15		6.04	1.19
R	-2		1,000.00		1,026.29		5.40			1,000.00		1,019.81		5.38	1.06
R	-3		1,000.00		1,027.32		4.48			1,000.00		1,020.71		4.47	0.88
R	-4		1,000.00		1,028.22		3.52			1,000.00		1,021.67		3.51	0.69
R	-5		1,000.00		1,029.77		2.91			1,000.00		1,022.27		2.90	0.57


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


					Actual							Hypothetical
Expenses Paid
					Ending		During Period					Ending		Expenses Paid
			Beginning		Account Value		May 1, 2016 to			Beginning		Account Value		During Period	Annualized
			Account Value		October 31,		October 31,			Account Value		October 31,		May 1, 2016 to	Expense
			May 1, 2016		2016		2016	^(a)		May 1, 2016		2016		October 31, 2016^(a)	Ratio
	SAM Strategic Growth Portfolio
	Class J	$	1,000.00	$	1,027.26	$	2.65		$	1,000.00	$	1,022.52	$	2.64	0.52	%
	Institutional		1,000.00		1,028.14		1.63			1,000.00		1,023.53		1.63	0.32
R	-1		1,000.00		1,023.32		6.05			1,000.00		1,019.15		6.04	1.19
R	-2		1,000.00		1,023.81		5.39			1,000.00		1,019.81		5.38	1.06
R	-3		1,000.00		1,025.00		4.48			1,000.00		1,020.71		4.47	0.88
R	-4		1,000.00		1,025.98		3.51			1,000.00		1,021.67		3.51	0.69
R	-5		1,000.00		1,026.62		2.90			1,000.00		1,022.27		2.90	0.57

	Short-Term Income Fund
	Class J		1,000.00		1,010.91		3.54			1,000.00		1,021.62		3.56	0.70
	Institutional		1,000.00		1,012.27		2.18			1,000.00		1,022.97		2.19	0.43
R	-1		1,000.00		1,007.92		6.56			1,000.00		1,018.60		6.60	1.30
R	-2		1,000.00		1,008.57		5.91			1,000.00		1,019.25		5.94	1.17
R	-3		1,000.00		1,009.48		5.00			1,000.00		1,020.16		5.03	0.99
R	-4		1,000.00		1,010.47		4.04			1,000.00		1,021.11		4.06	0.80
R	-5		1,000.00		1,011.04		3.44			1,000.00		1,021.72		3.46	0.68

	SmallCap Fund
	Class J		1,000.00		1,064.68		5.14			1,000.00		1,020.16		5.03	0.99
	Institutional		1,000.00		1,066.03		4.15			1,000.00		1,021.11		4.06	0.80
R	-1		1,000.00		1,061.36		8.45			1,000.00		1,016.94		8.26	1.63
R	-2		1,000.00		1,061.85		7.77			1,000.00		1,017.60		7.61	1.50
R	-3		1,000.00		1,062.67		6.84			1,000.00		1,018.50		6.70	1.32
R	-4		1,000.00		1,063.72		5.86			1,000.00		1,019.46		5.74	1.13
R	-5		1,000.00		1,064.58		5.24			1,000.00		1,020.06		5.13	1.01

	SmallCap Growth Fund I
	Class J		1,000.00		1,057.88		6.72			1,000.00		1,018.60		6.60	1.30
	Institutional		1,000.00		1,058.99		5.23			1,000.00		1,020.06		5.13	1.01
R	-1		1,000.00		1,053.69		9.65			1,000.00		1,015.74		9.48	1.87
R	-2		1,000.00		1,055.24		8.99			1,000.00		1,016.39		8.82	1.74
R	-3		1,000.00		1,055.80		8.06			1,000.00		1,017.29		7.91	1.56
R	-4		1,000.00		1,056.19		7.08			1,000.00		1,018.25		6.95	1.37
R	-5		1,000.00		1,057.11		6.46			1,000.00		1,018.85		6.34	1.25
R	-6		1,000.00		1,058.10		5.48			1,000.00		1,019.81		5.38	1.06

	SmallCap S&P 600 Index Fund
	Class J		1,000.00		1,044.84		2.47			1,000.00		1,022.72		2.44	0.48
	Institutional		1,000.00		1,045.96		1.08			1,000.00		1,024.08		1.07	0.21
R	-1		1,000.00		1,042.02		5.29			1,000.00		1,019.96		5.23	1.03
R	-2		1,000.00		1,042.37		4.62			1,000.00		1,020.61		4.57	0.90
R	-3		1,000.00		1,043.42		3.70			1,000.00		1,021.52		3.66	0.72
R	-4		1,000.00		1,044.37		2.72			1,000.00		1,022.47		2.69	0.53
R	-5		1,000.00		1,045.04		2.11			1,000.00		1,023.08		2.08	0.41

	SmallCap Value Fund II
	Class J		1,000.00		1,044.80		7.30			1,000.00		1,018.00		7.20	1.42
	Institutional		1,000.00		1,047.37		5.09			1,000.00		1,020.16		5.03	0.99
R	-1		1,000.00		1,043.60		9.50			1,000.00		1,015.84		9.37	1.85
R	-2		1,000.00		1,044.01		8.84			1,000.00		1,016.49		8.72	1.72
R	-3		1,000.00		1,044.46		7.91			1,000.00		1,017.39		7.81	1.54
R	-4		1,000.00		1,045.78		6.94			1,000.00		1,018.35		6.85	1.35
R	-5		1,000.00		1,047.15		6.33			1,000.00		1,018.95		6.24	1.23
R	-6		1,000.00		1,047.41		5.20			1,000.00		1,020.06		5.13	1.01

	Tax-Exempt Bond Fund
	Institutional		1,000.00		1,008.12		3.03			1,000.00		1,022.12		3.05	0.60

	Tax-Exempt Bond Fund (Excluding
	Interest Expense and Fees)
	Institutional		1,000.00		1,008.10		2.93			1,000.00		1,022.18		2.95	0.58

^(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 (July 11, 2016 to October 31, 2016), multiplied by 112/366 (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

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

Daniel Pavelich	Retired.	126	None
Director since 2007
Member, Audit Committee
1944

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,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Randy L. Bergstrom	Counsel, Principal Global Investors, LLC (“PGI”)
Assistant Tax Counsel	Counsel, PLIC
Des Moines, IA 50392
1955

Jennifer A. Block	Counsel, PFD (2009-2013)
Assistant Counsel and Assistant	Counsel, PLIC
Secretary	Counsel, the Manager (2009-2013, 2014 - present)
Des Moines, IA 50392	Counsel, PSI (2009-2013)
1973	Counsel, PSS (2009-2013)

Tracy Bollin	Chief Financial Officer, PFA (2010-2015)
Chief Financial Officer	Senior Vice President, PFD since 2015
Des Moines, IA 50392	Chief Financial Officer, PFD since 2010
1970	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	Senior Vice President, PFD
Chief Compliance Officer	Chief Compliance Officer-Funds, PLIC since 2016
Des Moines, IA 50392	Vice President/Compliance, PLIC
1960	Senior Vice President, the Manager
	Senior Vice President, PSI
	Senior Vice President, PSS

Gina L. Graham	Vice President/Treasurer, PFA since 2016
Treasurer	Vice President/Treasurer, PFD since 2016
Des Moines, IA 50392	Vice President/Treasurer, PGI since 2016
1965	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	Counsel, PGI
Assistant Tax Counsel	Counsel, PLIC
Des Moines, IA 50392
1962

Layne A. Rasmussen	Vice President/Controller – Principal Funds, the Manager
Vice President and Controller
Des Moines, IA 50392
1958

Greg Reymann	Assistant General Counsel, PLIC since 2014
Assistant Counsel	Assistant General Counsel, the Manager since 2015
Des Moines, IA 50392	VP, Chief Compliance Officer and Chief Risk Officer, Transamerica Asset
1958	Management, Inc. (“TAM”) (2010-2012)
	Assistant General Counsel, Transamerica Asset Management Group
	(2013-2014)
	Vice President/CFTC Principal, TAM (2013-2014)


Name, Position Held with the Fund,	Principal Occupation(s)
Address, and Year of Birth	During past 5 years
Teri R. Root	Vice President and Chief Compliance Officer, the Manager since 2015
Deputy Chief Compliance Officer	Compliance Officer, the Manager (2010-2013)
Des Moines, IA 50392	Vice President, PSS since 2015
1979

Britney L. Schnathorst	Counsel, PLIC since 2013
Assistant Counsel	Prior thereto, Attorney in Private Practice
Des Moines, IA 50392
1981

Adam U. Shaikh	Counsel, PFD (2006-2013)
Assistant Counsel	Counsel, PLIC
Des Moines, IA 50392	Counsel, the Manager (2007-2013, 2014 - present)
1972	Counsel, PSI (2007-2013)
	Counsel, PSS (2007-2013)

Dan Westholm	Assistant Vice President/Treasury, PFA since 2013
Assistant Treasurer	Director – Treasury, PFA (2011-2013)
Des Moines, IA 50392	Assistant Vice President/Treasury, PFD since 2013
1966	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	Director and Secretary – Funds, PLIC
Vice President and Secretary	Vice President, the Manager (2007-2013)
Des Moines, IA 50392
1956

Clint Woods	Vice President, Associate General Counsel, Governance Officer, and
Vice President and Counsel	Assistant Corporate Secretary, PLIC since 2015
Des Moines, IA 50392	Assistant General Counsel, Assistant Corporate Secretary, and Governance
1961	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 March 1, 2016, and the Statement of Additional Information dated March 1, 2016. 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 January 31 and July 31 of each year on Form N-Q. The Fund’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330.

During the period covered by this report, the Board of Directors of Principal Funds, Inc. (“PFI”) approved (1) a Subadvisory Agreement with Principal Global Investors, LLC (“PGI”) related to the high yield sleeve of the Global Diversified Income Fund; (2) a Subadvisory Agreement with Finisterre Capital LLC and a Management Agreement with Principal Management Corporation (the “Manager”) related to the Finisterre Emerging Markets Bond Fund; (3) a Subadvisory Agreement with PGI related to the opportunistic mortgage-backed securities investment sleeve of the Global Diversified Income Fund; (4) a Subadvisory Agreement with Victory Capital Management, Inc. related to the MidCap Value Fund I; and (5) the annual review and renewal of the Management Agreement and various subadvisory agreements for all Funds

On March 15, 2016, the Board considered for the Global Diversified Income Fund (the “Fund”) the approval of a sub-advisory agreement (the “Subadvisory Agreement”) between the Manager and PGI (the “Subadivsor”) with respect to the Fund's high yield sleeve.

The Board considered the nature, quality and extent of the services expected to be provided under the sub-advisory agreement. The Board considered the reputation, qualifications and background of PGI, the investment approach of PGI, the experience and skills of PGI’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 PGI currently provides sub-advisory services for another sleeve of the Fund and for other series of PFI, Principal Variable Contracts Funds, Inc. (“PVC”) and Principal Exchange-Traded Funds (“PETF” and together with PFI and PVC, the “Principal Funds”), and that the Board had reviewed and had approved renewal of those sub-advisory agreements at its September 2015 Board meeting. In addition, the Board considered the Manager’s program for recommending, monitoring and replacing sub-advisors and that the Manager recommended PGI 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 PGI to the Fund pursuant to the sub-advisory agreement is expected to be satisfactory.

The Board reviewed historical one-year, three-year, five-year and since inception (July 1, 2009) performance returns as of December 31, 2015 (gross and net of proposed fees) of PGI for a composite with an investment strategy similar to that proposed for the Fund, as compared to each of the historical composite performance of the terminated subadvisor for the Fund’s high yield investment sleeve, a relevant benchmark index for such investment sleeve and a relevant Morningstar category for such investment sleeve. Based on such information, the Board concluded that PGI is well qualified.

The Board also reviewed the expected impact on profitability to the Manager from the addition of PGI. The Board considered the proposed sub-advisory fee to be paid to PGI, noting that the Manager compensates sub-advisors from its own management fee so that shareholders pay only the management fee. The Board noted that there would be no change to the current management fee paid by the Fund. The Board considered whether there are economies of scale with respect to the sub-advisory services to be provided to the Fund under the proposed sub-advisory agreement. The Board noted that the proposed sub-advisory fee schedule does not include breakpoints, but concluded that such fee schedule is appropriate at currently anticipated asset levels. The Board considered PGI’s representation that it does not have any advisory clients with a lower fee for the specific mandate that it will manage for the Fund and the Manager’s statement that it believes the proposed sub-advisory fee schedule is fair and competitive relative to the respective universe. On the basis of the information provided, the Board concluded that the proposed sub-advisor fee was reasonable.

The Board also considered the character and amount of other incidental benefits to be received by PGI. The Board noted that PGI does not intend to use soft dollars in advising the high yield sleeve of the Fund. The Board concluded, taking into account the potential benefits, that the proposed sub-advisory fee was reasonable.

Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the sub-advisory agreement are fair and reasonable and that approval of the sub-advisory agreement is in the best interests of the Fund.

On March 15, 2016, the Board considered for the newly established Finisterre Unconstrained Emerging Markets Bond Fund (the “Fund”) the approval of a management agreement (the “Management Agreement”) between PFI, for the Fund, and the Manager and a subadvisory agreement (the “Subadvisory Agreement”) between the Manager and Finisterre Capital, LLC (the “Subadvisor”). (The Management Agreement and Subadvisory Agreement together are referred to as 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 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) noted that the Manager’s process emphasizes the selection of Principal-affiliated subadvisors that are determined to be qualified under the Manager’s due diligence process 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 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. The Board noted that the Subadvisor currently provides subadvisory services for another PFI fund, and that the Board had reviewed and had approved for renewal that subadvisory agreement 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 the 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 the Subadvisor to the Fund under the 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 one-year, two-year and since inception (May 31, 2013) performance (gross and net of proposed fees) as of December 31, 2015 of the investment sleeve of another series of PFI that is managed by the Subadvisor in accordance with a strategy that is a close proxy to the strategy that will be used in managing the Fund’s portfolio, as compared to a relevant benchmark index, a relevant blended index that will be used for the purpose of due diligence monitoring and a relevant Morningstar category. The Board also reviewed the historical one-year and three-year performance as of June 30, 2015 of a non-Principal fund that was managed in a similar strategy by the lead portfolio manager prior to his employment by the Manager. The Board concluded, based on the information provided, that the Subadvisor is well qualified.

The Board considered the Fund’s proposed management and subadvisory fees. With respect to the proposed management fee, the Board considered the fees proposed to be paid to the 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 the Subadvisor, the Board noted that the Manager compensates the Subadvisor, an affiliated company, 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 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 appropriate.

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 February 28, 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 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 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 13, 2016, the Board considered for the Global Diversified Income Fund (the “Fund”) the approval of a subadvisory agreement (the “Subadvisory Agreement”) between the Manager and PGI (the “Subadvisor”) for the new opportunistic mortgage-backed securities investment sleeve of the Fund.

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. The Board noted that the Subadvisor currently provides subadvisory services for other series of PFI, Principal Variable Contracts Funds, Inc. and Principal Exchange-Traded Funds, 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 the 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 the Subadvisor to the Fund under the Subadvisory Agreement are expected to be satisfactory.

The Board reviewed the historical one-year, three-year, five-year and since-inception (August 31, 2009) performance returns as of March 31, 2016 (gross and net of proposed fees) of the Subadvisor in a composite with an investment strategy similar to the proposed strategy for the opportunistic mortgage-backed securities investment sleeve of the Fund, as compared to a relevant benchmark index for the investment sleeve, and the annual performance of the Subadvisor in the same composite for each of the last five calendar years (gross and net of proposed fees), as compared to the relevant benchmark index. The Board also reviewed the percentile rankings of the performance of the Subadvisor’s composite (net of proposed 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 the Subadvisor, an affiliated company, 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 Subadvisor’s representation that it does not have any advisory clients with a lower fee for the specific mandate that it will manage for the Fund and the Manager’s statement that it found the proposed subadvisory fee schedule to be fair and competitive relative to the respective universe. 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 in connection with the proposed strategy for the opportunistic mortgage-backed securities investment sleeve. 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 13, 2016, the Board considered for the MidCap Value Fund I (the “Fund”) the approval of a subadvisory agreement (the “Subadvisory Agreement”) between the Manager and Victory Capital Management Inc. (the “Subadvisor”) for the Fund.

The Board reviewed the historical one-year, three-year, five-year and since-inception (July 1, 2004) performance returns as of March 31, 2016 (gross and net of proposed fees) of the Subadvisor in a composite with an investment strategy similar to the proposed strategy for the Fund, as compared to the historical performance returns (gross of fees) of the current subadvisor to the Fund and to a relevant benchmark index, and the annual performance of the Subadvisor in the same composite for each of the last five calendar years (gross and net of proposed fees), as compared to the historical performance (gross of fees) of the current subadvisor and to the relevant benchmark index. The Board also reviewed the percentile rankings of the performance of the Subadvisor’s composite (net of proposed 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 Subadvisor’s representation that it does not have any advisory clients with a lower fee for the specific mandate that it will manage for the Fund and the Manager’s statement that it found the proposed subadvisory fee schedule to be fair and competitive relative to the respective universe. 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 intends to use soft dollars and that the Subadvisor’s policy is to use soft dollars within the Section 28(e) safe harbor. The Board concluded that, on the basis of the information provided, the proposed subadvisory fee was reasonable.

Annual Review and Renewal of Management Agreement and Subadvisory Agreements

At its September 13, 2016 meeting, the Board performed its annual review and renewal process relating to the Management Agreement and the Subadvisory Agreements for all Funds.

Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires the Board, including a majority of the Directors who have no direct or indirect interest in the investment advisory agreements and who are not “interested persons” of PFI, as defined in the 1940 Act (the “Independent Directors”), annually to review and to consider the continuation of: (1) the Management Agreement between Principal Management Corporation (the “Manager”) and PFI, on behalf of each of the sixty-four (64) series of PFI (each series is referred to as a “Fund”) (2) the Subadvisory Agreements between the Manager and each of AllianceBernstein L.P.; American Century Investment Management, Inc.; Analytic Investors, LLC; Barrow Hanley Mewhinney & Strauss, LLC; BlackRock Financial Management, Inc.; Brown Advisory, LLC; Causeway Capital Management LLC.; Colonial First State Asset Management (Australia) Limited; Columbus Circle Investors; DDJ Capital Management, LLC; Dimensional Fund Advisors LP; Edge Asset Management, Inc.; Emerald Advisers, Inc.; Finisterre Capital LLP; J.P. Morgan Investment Management Inc.; Logan Circle Partners, L.P.; Los Angeles Capital Management and Equity Research, Inc.; Neuberger Berman Investment Advisers LLC; Origin Asset Management, LLP, Post Advisory Group, LLC; Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Robert W. Baird & Co. Incorporated; Sawgrass Asset Management, LLC, Spectrum Asset Management, Inc.; Stone Harbor Investment Partners LP; T. Rowe Price Associates, Inc.; Vaughan Nelson Investment Management, LP; Victory Capital Management Inc.; W. H. Reaves & Co., Inc.; Westwood Management Corp.; and William Blair & Company, L.L.C.; (collectively, the “Subadvisors”). The Management Agreement and the Subadvisory Agreements are collectively referred to as the “Advisory Agreements.”

The Board, including the Independent Directors, considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, including the Independent Directors, reviewed a broad range of information requested for this purpose by the Independent Directors, including, among other information, information regarding performance, advisory fees, total expenses, profitability from the Advisory Agreements to the Manager and information about economies of scale. The Board reviewed the materials provided and concluded that it was provided all information reasonably necessary to evaluate the Advisory Agreements.

The Board considered the nature, quality and extent of the services provided under the Management Agreements, including administrative services. The Board considered the experience and skills of senior management leading Fund operations, the experience and skills of the personnel performing the functions under the Management Agreement and the resources made available to such personnel, the ability of the Manager to attract and retain high-quality personnel and the organizational depth and stability of the Manager. The Board concluded that appropriate resources were provided under the Management Agreement. The Board also considered that, during the periods reviewed, other than for the “Core” portions of the Funds implementing the “Core Satellite” structure and the LifeTime Hybrid Funds, the Manager had delegated day-to-day portfolio management responsibility to the Subadvisors. The Board noted that the Manager’s process emphasizes the selection of Principal-affiliated subadvisors that are determined to be qualified under the Manager’s due diligence process, but that the Manager will select an unaffiliated subadvisor to manage all of a portion of a Fund’s portfolio when deemed necessary or appropriate based on a consideration of the Fund’s investment mandate and available expertise and resources within the Principal organization. With respect to Funds with unaffiliated Subadvisors, the Board considered the due diligence process developed by the Manager for purposes of selecting a highly qualified unaffiliated subadvisor for a Fund and for monitoring and replacing unaffiliated Subadvisors. The Board concluded that this due diligence process was working well. The Board also considered the compliance program established by the Manager and the level of compliance attained by the Funds. The Board noted that they had previously reviewed the annual best execution and soft dollar reports and included those findings in their consideration of the renewal of the Advisory Agreements. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Manager to the Funds under the Management Agreement were satisfactory.

The Board considered the nature, quality and extent of services provided under each Subadvisory Agreement. The Board considered the reputation, qualifications and background of the Subadvisor, investment approach of the Subadvisor, the experience and skills of investment personnel responsible for the day-to-day management of each Fund, and the resources made available to such personnel. The Board also considered the Subadvisors’ compliance with investment policies and general legal compliance. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Subadvisors to the Funds under the Subadvisory Agreements are satisfactory.

The Board reviewed each Fund’s investment performance over longer-term periods, reviewing both the investment return during the three-year period ended March 31, 2016 and the blended investment return (50%/50%) of the three- and five-year periods ended March 31, 2016, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar. For Funds or Subadvisors that did not have a three-year or five-year performance history, the Board reviewed performance for a one-year or three-year period, respectively, if available. The Board also compared each Fund’s investment performance over the three-year period ended March 31, 2016 to one or more relevant benchmark indices. For Funds that did not have a three-year performance history, the Board compared the Fund’s performance over the one-year period ended March 31, 2016 to one or more relevant benchmark indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no performance information was considered.

The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. For most Funds, the Board concluded that the Fund’s investment returns met acceptable levels of investment performance. There were certain Funds, and certain Subadvisors for multi-manager Funds that had not attained during the relevant period a level of investment performance considered satisfactory by the Board. For such Funds, the Board also considered other factors, such as the longer-term performance of each such Fund. The Board considered the Manager’s due diligence process for evaluating performance applied to all Funds and all Subadvisors, for which they received regular reporting, and concluded that the Manager has in place an effective due diligence process to monitor investment performance, to encourage remedial action and to make changes in the Subadvisors at the appropriate time, if necessary.

The Board considered each Fund’s management fee. The Board received information, based on data supplied by Broadridge, comparing each Fund’s (1) contractual management fee at current asset levels and at theoretical asset levels, (2) actual (after any fee waivers) management fee at average fiscal-year asset levels, (3) actual non-management fees at average fiscal-year asset levels, and (4) actual total expense ratio (including, as applicable, acquired fund fees and expenses) at average fiscal-year asset levels for Class A shares, where available, to advisory fees and expense ratios of mutual funds in a peer group selected by Broadridge, or for one Fund, a custom peer group recommended by the Manager and reviewed by the Board (“Expense Group”) and a broad-based, industry category defined by Broadridge (“Expense Universe”). For Funds that did not offer Class A shares or if Class A shares represented less than 5% of the Fund’s total assets, the information provided was based upon Institutional Class shares (or in the case of one Fund, Class R-6 shares).

In evaluating the management fees, the Board considered a variety of factors, including the amount of the fees, breakpoints, comparison to fees of peer group funds as well as other funds managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios, profitability and expense caps and fee waivers. For most Funds, actual management fees were within the third quartile or better when compared to their Expense Group. For some Funds, although actual management fees were higher than the third quartile, total net expense ratios were within the third quartile or better.

For each of the SAM Portfolios, the Board considered information from management about the Manager’s unique strategic and tactical asset allocation processes employed in the management of the Fund. The Board noted that the current contractual management fees for several of the SAM Portfolios were in the fourth quartile for the applicable Expense Group, that the actual management fees for all of the SAM Portfolios were in the fourth quartile for the applicable Expense Group and that the total net expense ratios for all but one of the SAM Portfolios were in the third or fourth quartile for the applicable Expense Group. The Board considered the new management fee schedule, to be effective November 1, 2016, offered by management for the PFI SAM Portfolios and the estimated pro forma effect the new management fee schedule would have on the total expense ratio for each of the SAM Portfolios, each of which would be in the third quartile or better. The Board also reviewed the pro forma impact of the new management fee schedule on profitability. Taking into consideration these factors, the Board determined that the management fees, as amended, were justified by the strategy and processes of the Funds. For each of the SAM Portfolios, the Board concluded that the Fund met performance expectations.

The Board also considered that the Manager contractually agreed to continue to waive a portion of its management fee for nine (9) PFI Funds that have implemented the “Core Satellite” structure. The Board also considered the services provided by the Manager in managing the enhanced index “Core” sleeve as a part of the overall services covered by the net management fee received by the Manager.

With specific regard to the Core Plus Bond Fund, although the contractual management fee, the current actual management fee and the total net expense ratio on the basis of Institutional Class shares were higher than third quartile (92%, 99% and 77%, respectively) for the Expense Group, taking into account the proposed contractual management fee waiver for the Fund to be effective from November 1, 2016 through February 28, 2018, the Board concluded that the Management Agreement should be renewed. Such determination was based upon all relevant factors, including the Fund’s performance in the second quartile of its Morningstar peer group for each of the three-year and blended three- and five-year periods ended March 31, 2016 (46% and 45%, respectively) and the pro forma rankings for the Fund, which for Class I shares were 92% for the actual management fee and 69% for the total net expense ratio.

With specific regard to the MidCap Growth Fund III, although the contractual management fee, the actual management fee and the total net expense ratio on the basis of Institutional Class shares were higher than third quartile (99%, 99% and 86%, respectively) for the Expense Group, the Board concluded that the Management Agreement should be renewed. Such determination was based upon all relevant factors, including the explanation provided by the Manager for the Fund’s performance in the third quartile of its Morningstar peer group for each of the three-year and blended three- and five-year periods ended March 31, 2016 (58% and 51%, respectively), the recent decision to change one of the Fund’s Subadvisors and the pro forma rankings for the Fund after giving effect to a 6-basis point voluntary management fee waiver for the Fund that was effective July 1, 2016, which waiver resulted in improved pro forma rankings of the Fund’s actual management fee and total net expense ratio on the basis of Class I shares in the Expense Group (93% and 71%, respectively).

With specific regard to the International Emerging Markets Fund, although the current actual management fee and the total net expense ratio on the basis of Class A shares were higher than third quartile (80% and 87%, respectively) for the Expense Group, taking into account the proposed expense caps for certain share classes of the Fund to be effective from November 1, 2016 through February 28, 2018, the Board concluded that the Management Agreement should be renewed. Such determination was based upon all relevant factors, including the explanation provided by the Manager for the Fund’s performance in the fourth quartile of its Morningstar peer group for three-year period ended March 31, 2016 (81%), the Fund’s performance in the third quartile of its Morningstar peer group for the blended three- and five-year period ended March 31, 2016 (74%) and the pro forma rankings for the Fund, which for Class A shares were 33% for the actual management fee and 47% for the total net expense ratio.

Considering all factors they deemed relevant, the Board concluded that the management fee schedule for each Fund was reasonable and appropriate in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.

The Board reviewed detailed information regarding revenues the Manager receives under the Management Agreement, as well as the estimated direct and indirect costs the Manager incurs in providing to each Fund the services described in the applicable Advisory Agreements, for the year ended December 31, 2015. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to affiliated Subadvisors (Principal Global Investors, LLC, Principal Real Estate Investors LLC, Columbus Circle Investors, Edge Asset Management Inc., Finisterre Capital LLP, Origin Asset Management LLP, Post Advisory Group LLC and Spectrum Asset Management, Inc.), and the aggregated return on revenue to the Manager and its affiliates. The Board concluded that the management fee for each Fund was reasonable, taking into account the profitability information presented by the Manager.

The Board considered whether there are economies of scale with respect to the management of each Fund and whether the Funds benefit from any such economies of scale. The Board then reviewed the levels at which breakpoints occur and the amount of the reductions. The Board considered whether the effective management fee rate for each Fund under the applicable Management Agreement is reasonable in relation to the asset size of such Fund. The Board also noted management’s explanation of efficiencies in the Manager’s cost structure and the impact on the Manager’s profitability. The Board concluded that the fee schedule for each Fund reflects an appropriate level of sharing of any economies of scale.

The Board noted that the PFI LifeTime Funds and the PFI LifeTime Hybrid Funds do not directly pay management fees (although shareholders bear a portion of the cost of the management fees at the underlying fund level as reflected in the acquired fund fees and expenses). The Board also noted that the management fees for the LargeCap S&P 500 Index Fund, the MidCap S&P

400 Index Fund, and the SmallCap S&P 600 Index Fund, do not include breakpoints. Although their management fee schedules do not include breakpoints, the Board noted that each of these Funds has a relatively low basis point fee (25 basis points or less) on all Fund assets.

For each Fund, the Board considered the subadvisory fees, noting that the Manager compensates each Subadvisor from its own management fee, so that shareholders pay only the management fee. The Board also received industry data supplied by Broadridge. The Board considered whether there are economies of scale with respect to the subadvisory services provided to each Fund and, if so, whether the subadvisory fees reflect such economies of scale through breakpoints in fees. In addition, in evaluating the subadvisory fees and the factor of profitability, with respect to unaffiliated Subadvisors, the Board considered that the subadvisory fee rate was negotiated at arm’s-length between the Manager and each Subadvisor. The Board considered the profitability of the affiliated Subadvisors in conjunction with their review of the profitability of the Manager. On the basis of the information provided, the Board concluded that the subadvisory fees were reasonable.

The Board also considered the character and amount of other incidental benefits received by the Manager and its affiliates and each Subadvisor from their relationships with the Funds. The Board also considered as a part of this analysis each Subadvisor’s soft dollar practices and brokerage practices. The Board concluded that management and subadvisory fees for each Fund were reasonable in light of these benefits.

With specific regard to the Subadvisory Agreement pursuant to which Victory Capital Management, Inc. serves as a Subadvisor to the MidCap Value Fund I, the Board concluded that the Subadvisory Agreement should be renewed and amended to include a non-material addition proposed by the Manager relating to the fee paid for cash management.

With specific regard to the Subadvisory Agreement pursuant to which Columbus Circle Investors (“CCI”) serves as a Subadvisor to the SmallCap Growth Fund I, the Board concluded that the Subadvisory Agreement with CCI should be renewed. In reaching this conclusion, the Board noted that CCI’s fees are satisfactory, that the Manager had recommended the termination of the subadvisory relationship between CCI and the Fund and that the Manager had recommended the renewal of the Subadvisory Agreement to provide for an orderly transition of the Fund’s portfolio prior to the termination of that relationship.

With specific regard to the Subadvisory Agreement pursuant to which Analytic Investors, LLCs (“Analytic”) serves as a Subadvisor to the Global Diversified Income Fund, the Board noted that a change in control transaction with respect to Analytic was expected to become effective on or about October 1, 2016, and that this change in control would result in the “assignment” (as defined in the Investment Company Act of 1940, as amended) of the Subadvisory Agreement, causing the agreement’s automatic termination. Accordingly, the Board concluded both that the existing Subadvisory Agreement with Analytic should be renewed and that a new Subadvisory Agreement with Analytic should be approved, to take effect upon the termination of the existing Subadvisory Agreement, in order to allow Analytic to continue to provide portfolio management services to the Fund following the change in control. In approving the new Subadvisory Agreement, the Board noted that the fee charged by Analytic would not change as a result of the change in control transaction and management’s statement that the change in control of Analytic was not expected to impact the nature, quality or extent of services that Analytic provides to the Fund.

Based upon all of the information it considered and the conclusions it reached, the Board determined unanimously that the terms of each Advisory Agreement continue to be fair and reasonable and that the continuation of each Advisory Agreement, with the actions proposed by the Manager, is in the best interests of each Fund.

Special Meeting of Shareholders
Principal Funds, Inc. – Global Diversified Income Fund
Held June 28, 2016

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

Long-Term Capital Gain Dividends. Certain Funds distributed long-term capital gain dividends during the fiscal year ended October 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.

Dividend Received Deduction. For corporate shareholders, the percentages of ordinary income distributions (dividend income and short-term gains, if any) for the year ended October 31, 2016, that qualify for the dividend received deduction are as follows:


	Deductible			Deductible
	Percentage			Percentage
Core Plus Bond Fund	1.80	%	Principal LifeTime 2035 Fund	37.58	%
Equity Income Fund	83.73	%	Principal LifeTime 2040 Fund	41.60	%
Global Diversified Income Fund	7.21	%	Principal LifeTime 2045 Fund	44.76	%
Global Real Estate Securities Fund	0.57	%	Principal LifeTime 2050 Fund	46.31	%
High Yield Fund	0.06	%	Principal LifeTime 2055 Fund	50.92	%
High Yield Fund I	0.24	%	Principal LifeTime 2060 Fund	50.22	%
Income Fund	2.07	%	Principal LifeTime Hybrid 2015 Fund	25.05	%
LargeCap Growth Fund	100.00	%	Principal LifeTime Hybrid 2020 Fund	30.30	%
LargeCap Growth Fund I	100.00	%	Principal LifeTime Hybrid 2025 Fund	27.97	%
LargeCap Growth Fund II	33.85	%	Principal LifeTime Hybrid 2030 Fund	42.31	%
LargeCap S&P 500 Index Fund	100.00	%	Principal LifeTime Hybrid 2035 Fund	44.74	%
LargeCap Value Fund	99.27	%	Principal LifeTime Hybrid 2040 Fund	52.60	%
LargeCap Value Fund III	100.00	%	Principal LifeTime Hybrid 2045 Fund	53.50	%
MidCap Fund	100.00	%	Principal LifeTime Hybrid 2050 Fund	57.60	%
MidCap Growth Fund	37.43	%	Principal LifeTime Hybrid 2055 Fund	53.71	%
MidCap S&P 400 Index Fund	96.38	%	Principal LifeTime Hybrid 2060 Fund	53.09	%
MidCap Value Fund I	50.82	%	Principal LifeTime Hybrid Income Fund	9.66	%
MidCap Value Fund III	98.96	%	Principal LifeTime Strategic Income Fund	9.59	%
Overseas Fund	1.15	%	SAM Balanced Portfolio	36.62	%
Principal Capital Appreciation Fund	100.00	%	SAM Conservative Balanced Portfolio	17.82	%
Principal LifeTime 2010 Fund	16.51	%	SAM Conservative Growth Portfolio	72.25	%
Principal LifeTime 2015 Fund	19.89	%	SAM Flexible Income Portfolio	12.82	%
Principal LifeTime 2020 Fund	23.85	%	SAM Strategic Growth Portfolio	67.31	%
Principal LifeTime 2025 Fund	26.93	%	SmallCap S&P 600 Index Fund	83.82	%
Principal LifeTime 2030 Fund	32.05	%	SmallCap Value Fund II	76.15	%

Qualified Dividend Income. Certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentages of ordinary income distributions for the fiscal year ended October 31, 2016, taxed at a maximum rate of 15% are as follows:


	Percentage			Percentage
Core Plus Bond Fund	2.96	%	Principal LifeTime 2030 Fund	57.68	%
Diversified International Fund	100.00	%	Principal LifeTime 2035 Fund	63.81	%
Equity Income Fund	100.00	%	Principal LifeTime 2040 Fund	70.20	%
Finisterre Unconstrained Emerging Markets Bo	1.69	%	Principal LifeTime 2045 Fund	74.88	%
Global Diversified Income Fund	12.92	%	Principal LifeTime 2050 Fund	77.46	%
Global Real Estate Securities Fund	29.20	%	Principal LifeTime 2055 Fund	82.94	%
High Yield Fund	1.92	%	Principal LifeTime 2060 Fund	82.65	%
High Yield Fund I	0.79	%	Principal LifeTime Hybrid 2015 Fund	37.69	%
Income Fund	2.09	%	Principal LifeTime Hybrid 2020 Fund	45.32	%
International Emerging Markets Fund	100.00	%	Principal LifeTime Hybrid 2025 Fund	43.36	%
International Fund I	100.00	%	Principal LifeTime Hybrid 2030 Fund	60.84	%
LargeCap Growth Fund	100.00	%	Principal LifeTime Hybrid 2035 Fund	62.84	%
LargeCap Growth Fund I	100.00	%	Principal LifeTime Hybrid 2040 Fund	73.17	%
LargeCap Growth Fund II	34.41	%	Principal LifeTime Hybrid 2045 Fund	74.76	%
LargeCap S&P 500 Index Fund	100.00	%	Principal LifeTime Hybrid 2050 Fund	79.90	%
LargeCap Value Fund	100.00	%	Principal LifeTime Hybrid 2055 Fund	74.98	%
LargeCap Value Fund III	100.00	%	Principal LifeTime Hybrid 2060 Fund	74.35	%
MidCap Fund	100.00	%	Principal LifeTime Hybrid Income Fund	17.30	%
MidCap Growth Fund	39.10	%	Principal LifeTime Strategic Income Fund	21.27	%
MidCap S&P 400 Index Fund	100.00	%	Real Estate Securities Fund	6.45	%
MidCap Value Fund I	52.28	%	SAM Balanced Portfolio	58.34	%
MidCap Value Fund III	100.00	%	SAM Conservative Balanced Portfolio	30.32	%
Overseas Fund	100.00	%	SAM Conservative Growth Portfolio	100.00	%
Principal Capital Appreciation Fund	100.00	%	SAM Flexible Income Portfolio	21.41	%
Principal LifeTime 2010 Fund	33.69	%	SAM Strategic Growth Portfolio	87.28	%
Principal LifeTime 2015 Fund	39.06	%	SmallCap S&P 600 Index Fund	85.23	%
Principal LifeTime 2020 Fund	45.61	%	SmallCap Value Fund II	76.95	%
Principal LifeTime 2025 Fund	50.62	%

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

Foreign Taxes Paid. The following Funds elect under the Internal Revenue Code Section 853 to pass through foreign taxes paid to their shareholders.

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

Due to size constraints, this filing is being made in 2 (two) related submissions. This submission is the first of the two related submissions.


Registrant’s telephone number, including area code:		515-248-0156
Date of fiscal year end:	October 31, 2016
Date of reporting period:	October 31, 2016


Performance of other share classes will differ.


Average Annual Total Returns* as of October 31, 2016
		1-Year		5-Year		10-Year
Class J Shares	Excluding Sales Charge	-0.66	%	5.22	%	1.11	%
	Including Sales Charge	-1.64	%	5.22	%	1.11	%
Institutional Shares		-0.34	%	5.63	%	1.61	%
R-1 Shares		-1.20	%	4.72	%	0.73	%
R-2 Shares		-0.99	%	4.86	%	0.87	%
R-3 Shares		-0.79	%	5.06	%	1.05	%
R-4 Shares		-0.65	%	5.25	%	1.24	%
R-5 Shares		-0.52	%	5.38	%	1.45	%


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


Performance of other share classes will differ.



Average Annual Total Returns* as of October 31, 2016
								Extended
	1-Year		5-Year		10-Year		Inception Date	Performance
								Inception Date***
Institutional Shares	5.96	%	11.55	%	6.05	%	8/1/00	5/31/39
R-1 Shares	5.02	%	10.58	%	5.12	%	3/1/10	5/31/39
R-2 Shares	5.17	%	10.73	%	5.26	%	3/1/10	5/31/39
R-3 Shares	5.35	%	10.93	%	5.45	%	3/1/10	5/31/39
R-4 Shares	5.54	%	11.13	%	5.63	%	3/1/10	5/31/39
R-5 Shares	5.66	%	11.27	%	5.73	%	3/1/10	5/31/39


Average Annual Total Returns* as of October 31, 2016
	1-Year		5-Year		Since Inception		Inception Date
Institutional Shares	6.80	%	7.17	%	11.79	%	12/15/08


Performance of other share classes will differ.



Average Annual Total Returns* as of October 31, 2016
								Extended
	1-Year		5-Year		Since Inception		Inception Date	Performance
								Inception Date***
Institutional Shares	-0.10	%	9.69	%	2.95	%	10/01/07	-
R-3 Shares	-0.52	%	9.14	%	2.43	%	03/01/16	10/01/07
R-4 Shares	-0.37	%	9.34	%	2.62	%	03/01/16	10/01/07
R-5 Shares	-0.19	%	9.48	%	2.75	%	03/01/16	10/01/07
R-6 Shares	-0.13	%	9.66	%	2.93	%	11/25/14	10/01/07


711 High Street, Des Moines, IA 50392
(Address of principal executive offices)	(Zip code)


Average Annual Total Returns* as of October 31, 2016
						Extended Performance
	1-Year		Since Inception		Inception Date
						Inception Date***

Institutional Shares	3.67	%	3.30	%	9/30/14	-
R-6 Shares	3.67	%	3.30	%	8/24/15	9/30/14

^(a)	Class B shares discontinued operations and converted to Class A shares on February 23, 2015.
^(b)	Period from August 24, 2015, date operations commenced, through October 31, 2015 for Class P shares.
^(c)	Period from February 27, 2015, date operations commenced, through October 31, 2015 for Institutional class.

^(a)	Period from March 1, 2016, date operations commenced, through October 31, 2016 for R-3, R-4, and R-5 shares.
^(b)	Period from November 25, 2014, date operations commenced, through October 31, 2015 for R-6 shares.


		Average	Weighted Average
		Outstanding Balance	Interest Rate
California Municipal Fund	$	4	.95	%
High Yield Fund		27	.74
International Emerging Markets Fund		434	.90
LargeCap Growth Fund		198	.89
LargeCap Value Fund		106	.94
MidCap Fund		3,637	.87
MidCap Growth Fund		8	.95
MidCap Value Fund I		86	.87


		FCM (Futures
		and Cleared Swaps)		Shorts		ISDA (OTC Derivatives)
Finisterre Unconstrained Emerging Markets Bond Fund	$	84	$	—	$	—
Global Diversified Income Fund		—		55,562		—
Inflation Protection Fund		2,165		—		593
International Fund I		751		—		—
LargeCap Growth Fund I		8,303		—		—
LargeCap Growth Fund II		1,000		—		—
LargeCap Value Fund III		2,300		—		—
MidCap Growth Fund III		2,900		—		—
MidCap S&P 400 Index Fund		738		—		—
MidCap Value Fund I		4,400		—		—
MidCap Value Fund III		2,200		—		—
Overseas Fund		6,302		—		—
SmallCap Growth Fund I		4,503		—		—
SmallCap S&P 600 Index Fund		797		—		—
SmallCap Value Fund II		5,000		—		—


Global Diversified Income Fund	Number of Contracts			Premium (thousands)
Beginning of period	189,352		$	14,021
Options written	1,784,699			341,797
Options expired	(176,009	)		(41,385	)
Options closed	(1,448,985	)		(246,095	)
Options exercised	(178,751	)		(29,336	)
Balance at end of period	170,306		$	39,002

				Notional Amount
Inflation Protection Fund	Number of Contracts			(thousands)			Premium (thousands)
Beginning of period	312,255,597			175,390		$	6,222
Options written	1,777,634,106			535,070			20,024
Options expired	(257,704,701	)		(7,730	)		(2,415	)
Options closed	(1,178,823,181	)		(145,210	)		(11,076	)
Options exercised	(283,031,821	)		(97,260	)		(4,178	)
Balance at end of period	370,330,000			460,260		$	8,577


	Total Percentage of			Total Percentage of
Fund	Outstanding Shares Owned		Fund	Outstanding Shares Owned
Core Plus Bond Fund	85.59	%	LargeCap Value Fund	83.35	%
Diversified International Fund	47.86		LargeCap Value Fund III	73.75
Equity Income Fund	38.04		MidCap Fund	8.16
Global Diversified Income Fund	12.84		MidCap Growth Fund III	58.84
Global Real Estate Securities Fund	38.48		MidCap S&P 400 Index Fund	21.53
Government & High Quality Bond Fund	49.05		MidCap Value Fund III	67.41
High Yield Fund	13.27		Overseas Fund	65.54
High Yield Fund I	19.94		Principal Capital Appreciation Fund	28.55
Income Fund	57.58		Short-Term Income Fund	39.73
Inflation Protection Fund	54.70		SmallCap Growth Fund I	31.92
International Emerging Markets Fund	47.53		SmallCap S&P 600 Index Fund	22.16
LargeCap Growth Fund	55.59		SmallCap Value Fund II	38.30
LargeCap Growth Fund I	27.53
LargeCap S&P 500 Index Fund	48.84


Diversified International Fund	$	24,339,094
Global Diversified Income Fund		10,238,955
Global Real Estate Securities Fund		49,558,136
International Emerging Markets Fund		17,201,794
SmallCap Growth Fund I		1,946
SmallCap Value Fund II		131,473


International Emerging Markets Fund	$	11,218,227
SmallCap Value Fund II		149,854


			Fair Value as
	Asset		of October		Unobservable		Input
Fund	Type		31, 2016	Valuation Technique	input		Values(s)

Finisterre Unconstrained Emerging
Markets Bond Fund	Bonds	$	265	Indicative Market Quotations	Broker Quote	$	99.29


					Accrued
					Discounts/
					Premiums															Net Change in Unrealized
			Realized		and Change					Proceeds			Transfers					Value		Appreciation/(Depreciation)
	Value July		Gain/		in Unrealized					from			into Level			Transfers Out of		October 31,		on Investments Held at
Fund	11, 2016		(Loss)		Gain/(Loss)			Purchases		Sales			3	*		Level 3**		2016		October 31, 2016

Finisterre Unconstrained Emerging Markets Bond Fund
Bonds	$	—	$ —	$	(2	)	$	268	$	(1	)	$	—		$	—	$	265	$	(2	)
Total	$	—	$ —	$	(2	)	$	268	$	(1	)	$	—		$	—	$	265	$	(2	)

***	Prior to March 1, 2016, the contractual limit was .41%.
^	Prior to March 1, 2016, the contractual limit was .13%.
^^	Prior to March 1, 2016, the contractual limit was .06%.
^^^	Prior to March 1, 2016, the contractual limit was .42%.
#	Period from July 11, 2016 to October 31, 2016.


LargeCap Growth Fund I	.016	%	MidCap Value Fund III	.014
LargeCap Growth Fund II	.044		Overseas Fund	.030
LargeCap Value Fund III	.012		SmallCap Growth Fund I	.072
MidCap Growth Fund III	.032		SmallCap Value Fund II	.024
MidCap Value Fund I	.120	#


LargeCap S&P 500 Index Fund	Class A	.15	%
Money Market Fund	Class A	N/A
Short-Term Income Fund	Class A	.15


		Expired		Utilized
California Municipal Fund	$	10,723	$	576
Diversified International Fund		38,411		—
Global Diversified Income Fund		—		53,066
Global Real Estate Securities Fund		—		200
Government & High Quality Bond Fund		55,497		194
International Fund I		21,578		4,406
LargeCap S&P 500 Index Fund		—		17,236
Money Market Fund		35,423		54
Principal Capital Appreciation Fund		—		9,104
Principal LifeTime Hybrid 2020 Fund		—		12
Principal LifeTime Hybrid 2045 Fund		—		1
Principal LifeTime Strategic Income Fund		—		2,938
Short-Term Income Fund		307		3,644
SmallCap Fund		—		5,909
Tax-Exempt Bond Fund		3,668		1,524

(c)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities totaled $11,682 or 0.65% of net assets.
(d)	Security or a portion of the security was pledged to cover margin requirements for swap and/or swaption contracts. At the end of the period, the value of these securities totaled $326 or 0.02% of net assets.
(e)	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 $2,379 or 0.13% of net assets.


INVESTMENT COMPANIES - 100.65%	Shares Held		Value
Principal Funds, Inc. Institutional Class - 100.65%
Bond Market Index Fund ^(a)	8,287	$	93,565
Diversified International Fund ^(a)	34,037		385,301
Diversified Real Asset Fund ^(a)	4,355		47,729
Global Real Estate Securities Fund ^(a)	10,233		91,277
High Yield Fund I ^(a)	4,038		39,610
International Emerging Markets Fund ^(a)	1,185		26,762
International Small Company Fund ^(a)	6,045		59,841
LargeCap S&P 500 Index Fund ^(a)	55,362		832,094
MidCap S&P 400 Index Fund ^(a)	12,094		230,992
Origin Emerging Markets Fund ^(a)	2,934		26,081
SmallCap S&P 600 Index Fund ^(a)	3,967		92,988
		$	1,926,240
TOTAL INVESTMENT COMPANIES		$	1,926,240
Total Investments		$	1,926,240
Other Assets and Liabilities - (0.65)%		$	(12,472	)
TOTAL NET ASSETS - 100.00%		$	1,913,768


INVESTMENT COMPANIES - 102.78%	Shares Held		Value
Principal Funds, Inc. Institutional Class - 102.78%
Bond Market Index Fund ^(a)	1,799	$	20,310
Diversified International Fund ^(a)	8,208		92,910
Diversified Real Asset Fund ^(a)	1,037		11,368
Global Real Estate Securities Fund ^(a)	2,454		21,885
High Yield Fund I ^(a)	969		9,504
International Emerging Markets Fund ^(a)	294		6,641
International Small Company Fund ^(a)	1,440		14,253
LargeCap S&P 500 Index Fund ^(a)	13,398		201,364
MidCap S&P 400 Index Fund ^(a)	2,942		56,186
Origin Emerging Markets Fund ^(a)	726		6,456
SmallCap S&P 600 Index Fund ^(a)	967		22,676
		$	463,553
TOTAL INVESTMENT COMPANIES		$	463,553
Total Investments		$	463,553
Other Assets and Liabilities - (2.78)%		$	(12,535	)
TOTAL NET ASSETS - 100.00%		$	451,018


INVESTMENT COMPANIES - 100.14%	Shares Held		Value(000	's)
Principal Funds, Inc. Institutional Class - 100.14%
Bond Market Index Fund ^(a)	321,323	$	3,628
Diversified International Fund ^(a)	40,485		458
Global Diversified Income Fund ^(a)	62,350		852
Inflation Protection Fund ^(a)	121,716		1,061
International Small Company Fund ^(a)	7,119		71
LargeCap S&P 500 Index Fund ^(a)	59,146		889
MidCap S&P 400 Index Fund ^(a)	12,880		246
Short-Term Income Fund ^(a)	122,332		1,495
SmallCap S&P 600 Index Fund ^(a)	4,149		96
		$	8,796
TOTAL INVESTMENT COMPANIES		$	8,796
Total Investments		$	8,796
Other Assets and Liabilities - (0.14)%		$	(12	)
TOTAL NET ASSETS - 100.00%		$	8,784


Currency Abbreviations
ARS	Argentine Peso
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
CNY	Chinese Renminbi
COP	Colombian Peso
DKK	Danish Krone
EUR	Euro
GBP	British Pound Sterling
HKD	Hong Kong Dollar
HUF	Hungarian Forint
IDR	Indonesian Rupiah
INR	Indian Rupee
JPY	Japanese Yen
MXN	Mexican Peso
MYR	Malaysian Ringgit
NZD	New Zealand Dollar
PEN	Peruvian Nuevo Sol
PHP	Philippine Peso
PLN	Polish Zloty
RON	Romanian New Leu
RUB	Russian Rouble
SEK	Swedish Krona
TRY	Turkish Lira
USD/$	United States Dollar
ZAR	South African Rand

(a)	Calculated based on average shares outstanding during the period.
(b)	Reflects Manager's contractual expense limit.
(c)	Excludes interest expense and fees paid through inverse floater agreements. See "Operating Policies" in notes to financial statements.
(d)	Period from February 27, 2015, date operations commenced, through October 31, 2015.
(e)	Total return amounts have not been annualized.
(f)	Computed on an annualized basis.

(a)	Calculated based on average shares outstanding during the period.
(b)	Excludes expense reimbursement from Manager and/or Distributor.
(c)	Total return is calculated without the contingent deferred sales charge.
(d)	Reflects Manager's contractual expense limit.


						FINANCIAL HIGHLIGHTS (Continued)
						PRINCIPAL FUNDS, INC.




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


2.66	%(c)	$	25,181	1.12%(d),(e)		N/A		4.58	%(d)	511.0	%(d)


6.80			3,865,786	0.86		0.76	% (f)	5.58		101.1
(1.19	)		3,371,424	0.78		0.77	(f)	4.99		76.9
8.47			1,383,778	0.86		0.77	(f)	4.59		83.4
6.75			876,282	0.83	(e)	0.78	(f)	5.02		79.0
15.67			751,759	0.80	(e)	–		6.01		50.8


(0.10	)		2,620,500	0.90		N/A		1.69		54.7
4.09			2,521,188	0.90	(e)	N/A		1.55		47.5
11.46			2,076,053	0.90	(e)	N/A		1.57		29.3
14.49			1,470,065	0.92	(e)	N/A		1.86		52.4
19.67			1,077,821	0.93	(e)	N/A		1.92		87.9

4.39	(c)		21	1.44	(d)	N/A		0.96	(d)	54.7	(d)

4.48	(c)		21	1.25	(d)	N/A		1.15	(d)	54.7	(d)

4.63	(c)		10	1.13	(d)	N/A		1.31	(d)	54.7	(d)

(0.13	)		1,108	0.94	(e)	N/A		1.48		54.7
3.83	(c)		39	0.94 (d)	,(e)	N/A		1.42	(d)	47.5	(d)

(a)	Calculated based on average shares outstanding during the period.
(b)	Period from July 11, 2016, date operations commenced, through October 31, 2016.
(c)	Total return amounts have not been annualized.
(d)	Computed on an annualized basis.
(e)	Reflects Manager's contractual expense limit.
(f)	Excludes dividends and interest expense on short sales and short sale fees. See "Operating Policies" in notes to financial statements.
(g)	Period from March 1, 2016, date operations commenced, through October 31, 2016.
(h)	Period from November 25, 2014, date operations commenced, through October 31, 2015.

(a)	Calculated based on average shares outstanding during the period.
(b)	Excludes expense reimbursement from Manager.
(c)	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.
(d)	Reflects Manager's contractual expense limit.

(a)	Calculated based on average shares outstanding during the period.
(b)	Reflects Manager's contractual expense limit.
(c)	Period from March 1, 2012, date operations commenced, through October 31, 2012.
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	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)	Does not include expenses of the investment companies in which the Fund invests.
(c)	Excludes expense reimbursement from Manager and/or Distributor.
(d)	Total return is calculated without the contingent deferred sales charge.

(a)	Calculated based on average shares outstanding during the period.
(b)	Reflects Manager's contractual expense limit.
(c)	Period from September 30, 2014, date operations commenced, through October 31, 2014.
(d)	Total return amounts have not been annualized.
(e)	Computed on an annualized basis.
(f)	Period from August 24, 2015, date operations commenced, through October 31, 2015.
(g)	Does not include expenses of the investment companies in which the Fund invests.


In Favor	Opposed	Abstain
381,991,978.4454	9,134,828.3256	10,794,864.7243