X0101 EFFECT 33 LIVE 2010-05-06 11:45:00

N-14

0000898745 PRINCIPAL FUNDS INC 333-165915 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000038764 Class A 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019801 Class A 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000038766 Class C 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000038803 Class C 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000038767 Institutional Class 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019795 Institutional Class 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000090493 Class J Shares 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019800 Class J 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000090494 Class R-1 Shares 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019794 R-1 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000090495 Class R-2 Shares 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019796 R-2 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000090496 Class R-3 Shares 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019797 R-3 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000090497 Class R-4 Shares 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019799 R-4 0000898745 PRINCIPAL FUNDS INC S000014245 Short-Term Income Fund C000090498 Class R-5 Shares 0000898745 PRINCIPAL FUNDS INC S000007213 Short-Term Bond Fund C000019798 R-5