SAM Conservative Balanced Portfolio
A Shares: SAIPX
C Shares: SCIPX
Investment Strategy
as of 03/31/2017
P Shares: PCBTX
Average Annual Total Returns 1 as of 03/31/2017
The investment 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 SAM Portfolios operate
as funds of funds and invest principally in Principal
Funds, Inc. equity funds, fixed-income funds and
specialty funds ("underlying funds"); the
Sub-Advisor generally categorizes the underlying
fund based on the investment profile.
Portfolio Managers
Charles D. Averill, CFA
Since 01/01/2010, M.A., Princeton University
Todd A. Jablonski, CFA
Since 01/01/2010, M.B.A., New York University
Year-toDate
1-Year
3-Year
5-Year
10-Year
Since
Inception
SAM Conservative Balanced Portfolio (A)
Excluding Sales Charge
Including Sales Charge
3.18%
-2.47%
7.83%
1.92%
3.91%
1.98%
5.74%
4.55%
5.15%
4.56%
5.38%
5.09%
Morningstar Percentile
Rankings
–
50
30
30
19
–
528
513
408
350
243
–
3.15%
3.15%
4.96%
4.96%
4.38%
4.38%
4.59%
4.59%
3.98%
5.78%
5.17%
5.39%
Number of Funds in
Category
SAM Conservative Balanced Portfolio (C)
Excluding Sales Charge
Including Sales Charge
3.11%
2.11%
7.11%
6.11%
SAM Conservative Balanced Portfolio (P)
3.25%
Not FDIC or NCUA Insured
May Lose Value • Not a Deposit • No Bank or Credit Union Guarantee
Not Insured by any Federal Government Agency
8.07%
Investment results shown represent historical performance and do not guarantee future results. Your
investment's returns and principal values will fluctuate with changes in interest rates and other market
conditions so the value, when redeemed, may be worth more or less than original costs. Current
performance may be lower or higher than the performance shown. For more information, including the
most recent month-end performance, visit principalfunds.com, call your financial professional, or call
800-222-5852. A sales charge may apply as follows: Class A shares: maximum up-front sales charge of
5.50% and Class C shares: contingent deferred sales charge of 1% on redemptions made during the first
12 months. See the prospectus for details. Performance listed with sales charge reflects the maximum
sales charge.
Where gross and net expense ratios differ, Principal Management Corporation has contractually agreed
to limit the investment option’s expenses. Differences also may be due to Principal Management
Corporation’s decision to pay (through the same dates) certain expenses that would normally be
payable by the fund. Returns displayed are based on net total investment expense.
Operations
Total Investment Expense
$1,787.34
07/25/1996
03/01/2002
08/24/2015
07/25/1996
Total Net Assets (mil.)
Class A Inception Date
Class C Inception Date
Class P Inception Date
Extended Performance
Inception Date
Expiration Date
Gross
Net
Expense Expense Contractual
Waiver
Ratio
Ratio
Cap
1.31%
02/28/2018
02/28/2018
Class A 1.31%
2.06%
02/28/2018
02/28/2018
Class C 2.06%
1.68%
1.16%
02/28/2018
02/28/2018
Class P
Value of a $10,000 Investment1 (Represents performance for Class A shares adjusted for the maximum sales charge and assumes the reinvestment of distributions)
$20,000
Title
$15,000
$10,000
Total value of investment on 03/31/2017
$15,627
$5,000
Annual Total Returns1, 2
(Calendar Year)
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
7.21%
-19.13%
21.76%
11.45%
1.71%
10.75%
10.91%
5.72%
-1.17%
5.91%
1 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. Periods of less than one year are not annualized. Morningstar percentile rankings are based on total returns and do not reflect the
inclusion of sales charges. If sales charges were reflected, rankings could be lower.
2 The annual total returns shown above represent performance for Class A shares (not adjusted for sales charge) and any extended annual performance is based on the fund's oldest
share class (not adjusted for sales charge). Annual total returns for other share classes will differ.
SAM Conservative Balanced Portfolio
A Shares: SAIPX
Portfolio information
C Shares: SCIPX
as of 03/31/2017
P Shares: PCBTX
as of 02/28/2017
Analysis
Number of Holdings
Turnover Ratio
P/E Ratio
% of
Net Assets
Top Ten Holdings
25
17%
17.49
1.
2.
3.
4.
5.
6.
7.
8.
9.
Principal Income Instl
Principal Government & High Qual Bd Inst
Principal Short-Term Income Inst
Principal Diversified Intl Inst
Principal Equity Income Inst
Principal LargeCap Value Inst
Principal Global Multi-Strategy Instl
Principal Small-MidCap Dividend Inc Inst
Principal High Yield Inst
10. Principal Large Cap Growth Inst
2.84
74.61
% of net assets in top ten holdings
Asset Distribution
-25
0
25
Asset Type
Net %
U.S. Bonds
45.23
3.00
48.41
U.S. Stocks
30.53
0.00
31.18
Non-U.S. Stocks
14.08
0.00
14.40
Cash
5.62
5.00
11.22
Non-U.S. Bonds
2.59
1.00
4.29
Preferred
1.17
0.00
1.17
Other
0.54
0.00
0.75
Convertibles
0.24
0.00
0.25
Sensitive
Energy
Comm Svcs
Industrials
Technology
Short % Long %
50
Stock Sector Breakdown as of 02/28/2017
Cyclical
46.42% Defensive
Real Estate
Financial Svcs
Consumer Cyclical
Basic Materials
19.68
11.08
8.81
7.82
7.37
5.90
5.08
3.04
2.99
10.39
20.29
10.30
5.44
Utilities
Healthcare
Consumer Defensive
Risk & Return Statistics
18.24%
Class A Shares
4.14
8.05
6.05
Relative to SAM Conservative Balanced Blended Index
Alpha
Beta
R-Squared
Standard Deviation
35.33%
7.71
3.14
11.65
12.83
as of 03/31/2017
3-Year
-1.07
1.07
96.31
4.92
5-Year
-0.77
1.09
96.98
4.96
Risk and return statistical data is calculated by Morningstar, Inc.
The Portfolio Compos ition depicts a breakdown of the inves tment option's portfolio holdings , as of the date lis ted, into general inves tment clas s es . The x-axis repres ents the percentage
each inves tment group holds , with the y-axis repres enting a zero value. Values to the right of the y-axis repres ent long s ecurity pos itions , while values to the left of the y-axis repres ent
s hort s ecurity pos itions . The table to the right of the bar chart s ums thes e two values to pres ent the net emphas is of each inves tment group. Due to rounding, the total net pos ition may not
equal 100%. L ong pos itions involve buying a s ecurity and s elling it later, with the hope that the s ecurity price ris es over time. In contras t, s hort pos itions are taken to benefit from
anticipated price declines . P ortfolio holdings are s ubject to change and companies referenced in this report may not currently be held. Information is current as of the creation of this
piece. Keep in mind that portfolio holdings are s ubject to ris k. F or a complete lis t of the mos t recent publicly available holdings vis it principalfunds .com.
P rincipal Funds Clas s B s hares clos ed to newinves tors and newas s ets effective March 1, 2010.
Clas s P s hares are available only to certain inves tors . S ee the pros pectus for more information.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk,
and their value will decline as interest rates rise.
Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide adequate income at or
through retirement.
International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.
This Principal Strategic Asset Management Portfolio (SAM) indirectly bears its pro rata share of the management fees incurred by the underlying Principal Funds in which this portfolio
invests. Based on the asset allocation of the SAM Portfolio outlined in the prospectus dated March 1, 2017, the weighted average operating expenses of the underlying funds are:
Flexible Income, 0.57%; Conservative Balanced, 0.68%; Balanced, 0.74%; Conservative Growth, 0.79%; Strategic Growth, 0.78%. While the operating expenses of the underlying
mutual funds are not part of the SAM Portfolio operating expenses they are included in the Total Investment Expense. Performance results shown for the SAM Portfolios reflect the
application of these expenses.
SAM Conservative Balanced Blended Index is composed of 10% MSCI EAFE Index, 30% Russell 3000 Index and 60% Bloomberg Barclays Aggregate Bond Index.
Alpha: The difference between an inves tment's actual returns and its expected performance, given its level of ris k (as meas ured by beta). Beta: An inves tment's s ens itivity to market
movements . R-Squared: R anges from 0 to 100 and reveals howclos ely an inves tment's returns track thos e of a benchmark index. Standard Deviation: Meas ures howmuch an
inves tment's returns are likely to fluctuate.
Web Site: principalfunds.com
Carefully consider a fund’s objectives, risks, charges, and expenses. Contact your financial professional or visit principalfunds.com for a
prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.
Investing involves risk, including possible loss of principal.
P rincipal F unds are dis tributed by P rincipal Funds Dis tributor, Inc.
© 2017 Morningstar, Inc. All Rights Reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its
content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither
Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
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