Diversified International Fund As of August 31, 2017

SCHEDULE OF INVESTMENTS

MARKET % TOTAL NET ISSUER SHARES VALUE ASSETS Australia Macquarie Group Ltd 1,028,874 $ 71,206,172 0.61% CSL Ltd 646,097 $ 66,125,035 0.57% Mirvac Group 30,988,856 $ 57,319,678 0.49% Treasury Wine Estates Ltd 3,619,772 $ 41,688,635 0.36% Dexus 5,413,746 $ 41,370,128 0.36% Qantas Airways Ltd 8,444,080 $ 38,435,211 0.33%

Total Australia $ 316,144,859 2.72%

Austria Erste Group Bank AG 1,531,617 $ 64,776,667 0.56% Raiffeisen Bank International AG 490,278 $ 16,097,710 0.14%

Total Austria $ 80,874,377 0.70%

Brazil Banco do Brasil SA 8,098,000 $ 78,488,486 0.68% Vale SA 5,907,600 $ 65,534,696 0.56% Lojas Renner SA 6,052,650 $ 58,741,191 0.51% Itausa - Investimentos Itau SA 18,055,871 $ 58,277,125 0.50% Qualicorp SA 4,568,700 $ 50,536,758 0.43% Hypermarcas SA 3,735,814 $ 34,891,412 0.30% MRV Engenharia e Participacoes SA 5,609,500 $ 23,878,933 0.21%

Total Brazil $ 370,348,601 3.19%

Canada TransCanada Corp 2,381,127 $ 120,910,721 1.04% Brookfield Asset Management Inc 3,052,802 $ 120,743,056 1.04% Canadian National Railway Co 1,374,548 $ 111,416,816 0.96% Dollarama Inc 1,093,816 $ 107,800,549 0.93% Bank of Nova Scotia/The 1,494,100 $ 92,954,257 0.80% Alimentation Couche-Tard Inc 1,937,146 $ 92,502,115 0.80% Suncor Energy Inc 2,491,300 $ 78,065,721 0.67% Bank of Montreal 1,087,800 $ 78,060,267 0.67% Canadian Natural Resources Ltd 2,005,800 $ 61,792,293 0.53% Pembina Pipeline Corp 1,658,400 $ 53,453,934 0.46% Manulife Financial Corp 2,178,400 $ 42,791,713 0.37% Open Text Corp 968,800 $ 31,172,279 0.27% Encana Corp 2,393,400 $ 22,328,817 0.19% Industrial Alliance Insurance & Financial Services Inc 508,100 $ 21,805,068 0.19%

Total Canada $ 1,035,797,606 8.91%

China Tencent Holdings Ltd 5,129,432 $ 215,844,831 1.86% Alibaba Group Holding Ltd 981,120 $ 168,497,549 1.45% TAL Education Group 2,753,070 $ 83,775,920 0.72% New Oriental Education & Technology Group Inc 681,522 $ 55,714,424 0.48% NetEase Inc 197,063 $ 54,357,858 0.47%

Not FDIC or NCUA Insured PQ 4111 May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee 8-17 Not Insured by any Federal Government Agency Diversified International Fund As of August 31, 2017

SCHEDULE OF INVESTMENTS

MARKET % TOTAL NET ISSUER SHARES VALUE ASSETS China Petroleum & Chemical Corp 53,136,000 $ 40,676,969 0.35% China Telecom Corp Ltd 64,233,444 $ 33,080,386 0.28%

Total China $ 651,947,936 5.61%

Denmark Vestas Wind Systems A/S 1,071,535 $ 97,657,606 0.84% Danske Bank A/S 2,326,150 $ 90,489,587 0.78% Novo Nordisk A/S 1,657,386 $ 78,974,145 0.68% Genmab A/S 264,811 $ 62,004,999 0.53% Pandora A/S 505,321 $ 53,754,909 0.46%

Total Denmark $ 382,881,245 3.30%

Finland UPM-Kymmene OYJ 1,419,533 $ 36,951,519 0.32% Orion Oyj 450,388 $ 21,324,381 0.18%

Total Finland $ 58,275,901 0.50%

France LVMH Moet Hennessy Louis Vuitton SE 567,075 $ 148,953,147 1.28% TOTAL SA 1,887,044 $ 97,913,531 0.84% Vinci SA 1,007,701 $ 92,717,826 0.80% Kering 209,910 $ 78,742,714 0.68% AXA SA 2,617,309 $ 75,887,591 0.65% Atos SE 420,458 $ 64,853,440 0.56% Ubisoft Entertainment SA 903,673 $ 60,282,725 0.52% Thales SA 479,106 $ 53,039,942 0.46% SCOR SE 1,170,767 $ 49,012,173 0.42% Orange SA 2,855,520 $ 48,482,757 0.42% Amundi SA 468,062 $ 36,027,678 0.31% Capgemini SE 310,220 $ 34,391,825 0.30% Ipsen SA 168,886 $ 22,720,090 0.20%

Total France $ 863,025,439 7.43%

Germany Infineon Technologies AG 4,570,340 $ 105,546,954 0.91% Adidas AG 434,343 $ 97,550,236 0.84% Hannover Rueck SE 676,294 $ 82,037,907 0.71% SAP SE 724,769 $ 76,065,657 0.65% Vonovia SE 1,546,909 $ 65,431,179 0.56% Fresenius SE & Co KGaA 750,958 $ 63,737,455 0.55% Deutsche Telekom AG 2,974,051 $ 53,785,444 0.46% OSRAM Licht AG 591,850 $ 48,614,318 0.42% Covestro AG 559,535 $ 44,008,049 0.38% KION Group AG 388,545 $ 35,492,157 0.31% Duerr AG 242,142 $ 28,246,773 0.24% Evotec AG 1,270,284 $ 24,448,940 0.21%

SCHEDULE OF INVESTMENTS

MARKET % TOTAL NET ISSUER SHARES VALUE ASSETS

Total Germany $ 724,965,070 6.24%

Hong Kong Wharf Holdings Ltd/The 9,343,000 $ 89,127,978 0.77% Cheung Kong Property Holdings Ltd 9,158,840 $ 80,596,182 0.69% Sun Hung Kai Properties Ltd 2,818,000 $ 47,095,155 0.41% Melco International Development Ltd 12,093,000 $ 28,476,581 0.25% I-CABLE Communications Ltd 4,570,324 $ 169,670 0.00%

Total Hong Kong $ 245,465,566 2.11%

India Maruti Suzuki India Ltd 717,627 $ 86,562,413 0.74% Yes Bank Ltd 2,473,553 $ 67,997,473 0.59% Indiabulls Housing Finance Ltd 2,860,989 $ 54,527,018 0.47% HDFC Bank Ltd 400,833 $ 39,053,159 0.34% Power Grid Corp of India Ltd 10,615,488 $ 36,440,083 0.31% Vedanta Ltd 6,882,725 $ 33,334,226 0.29% Hero MotoCorp Ltd 473,690 $ 29,651,053 0.26% Petronet LNG Ltd 6,453,941 $ 22,957,663 0.20% HDFC Bank Ltd 801,119 $ 22,356,173 0.19%

Total India $ 392,879,261 3.38%

Indonesia Telekomunikasi Indonesia Persero Tbk PT 134,046,100 $ 47,285,847 0.41% Bank Negara Indonesia Persero Tbk PT 44,582,900 $ 24,633,063 0.21%

Total Indonesia $ 71,918,910 0.62%

Ireland CRH PLC 2,557,290 $ 89,315,595 0.77% Ryanair Holdings PLC 575,757 $ 65,463,571 0.56% Kingspan Group PLC 1,384,781 $ 53,686,098 0.46% ICON PLC 452,135 $ 51,267,588 0.44% Allied Irish Banks PLC 3,087,523 $ 18,371,129 0.16%

Total Ireland $ 278,103,981 2.39%

Israel Wix.com Ltd 262,744 $ 17,104,634 0.15%

Total Israel $ 17,104,634 0.15%

Italy Mediobanca SpA 6,673,093 $ 68,646,030 0.59% Enel SpA 10,503,518 $ 63,634,136 0.55% Recordati SpA 1,163,664 $ 49,908,981 0.43% Prysmian SpA 1,140,355 $ 35,945,047 0.31% Moncler SpA 1,209,540 $ 34,415,885 0.30% Ferrari NV 201,504 $ 23,080,578 0.20%

SCHEDULE OF INVESTMENTS

MARKET % TOTAL NET ISSUER SHARES VALUE ASSETS

Total Italy $ 275,630,658 2.37%

Japan Mitsubishi UFJ Financial Group Inc 19,584,576 $ 119,339,654 1.03% Nippon Telegraph & Telephone Corp 2,144,363 $ 106,755,794 0.92% SoftBank Group Corp 1,291,600 $ 105,150,725 0.90% Mitsubishi Corp 4,356,200 $ 100,782,799 0.87% Fujitsu Ltd 12,079,000 $ 89,540,086 0.77% Hitachi Ltd 12,069,000 $ 83,078,513 0.71% ORIX Corp 5,075,290 $ 81,341,147 0.70% Sumitomo Corp 5,197,400 $ 73,619,483 0.63% Honda Motor Co Ltd 2,396,100 $ 67,114,826 0.58% Hoya Corp 1,126,004 $ 64,530,159 0.56% Tokyo Electron Ltd 402,600 $ 56,701,568 0.49% Sumitomo Heavy Industries Ltd 7,367,000 $ 54,936,111 0.47% Asahi Glass Co Ltd 1,376,200 $ 53,731,057 0.46% Suzuki Motor Corp 1,006,000 $ 50,515,077 0.43% Rohm Co Ltd 646,100 $ 50,305,363 0.43% Ulvac Inc 906,500 $ 49,965,655 0.43% Furukawa Electric Co Ltd 918,800 $ 49,896,090 0.43% Mitsubishi Gas Chemical Co Inc 1,609,100 $ 40,002,917 0.34% MS&AD Insurance Group Holdings Inc 1,208,700 $ 39,814,962 0.34% Nichirei Corp 1,478,700 $ 39,091,624 0.34% Aisin Seiki Co Ltd 752,200 $ 37,794,055 0.33% Sekisui House Ltd 2,096,168 $ 36,292,300 0.31% Hitachi High-Technologies Corp 886,100 $ 31,645,971 0.27% Japan Lifeline Co Ltd 514,000 $ 26,398,422 0.23% Brother Industries Ltd 1,061,200 $ 25,174,889 0.22% Zenkoku Hosho Co Ltd 486,400 $ 19,784,209 0.17%

Total Japan $ 1,553,303,456 13.37%

Korea, Republic Of Samsung Electronics Co Ltd 101,335 $ 208,599,249 1.80% POSCO 200,802 $ 61,032,014 0.53% Hana Financial Group Inc 1,350,366 $ 58,727,181 0.51% Korea Electric Power Corp 1,284,494 $ 49,084,716 0.42% Shinhan Financial Group Co Ltd 1,043,569 $ 48,119,856 0.41% SK Telecom Co Ltd 208,258 $ 47,021,051 0.40% KT&G Corp 306,249 $ 31,134,977 0.27%

Total Korea, Republic Of $ 503,719,044 4.34%

Mexico Grupo Financiero Banorte SAB de CV 6,334,800 $ 43,225,840 0.37% Wal-Mart de Mexico SAB de CV 15,202,478 $ 36,987,446 0.32% Promotora y Operadora de Infraestructura SAB de CV 1,756,087 $ 19,190,082 0.17%

Total Mexico $ 99,403,368 0.86%

SCHEDULE OF INVESTMENTS

MARKET % TOTAL NET ISSUER SHARES VALUE ASSETS Netherlands ING Groep NV 7,172,974 $ 127,325,753 1.10% NN Group NV 2,060,006 $ 81,789,286 0.70% ASR Nederland NV 943,880 $ 36,575,083 0.31% Philips Lighting NV 721,040 $ 26,620,110 0.23%

Total Netherlands $ 272,310,232 2.34%

Norway DNB ASA 2,627,404 $ 51,320,089 0.44%

Total Norway $ 51,320,089 0.44%

Peru Credicorp Ltd 227,998 $ 46,247,114 0.40%

Total Peru $ 46,247,114 0.40%

Russian Federation Sberbank of Russia PJSC 6,008,782 $ 82,264,071 0.71% X5 Retail Group NV 1,245,880 $ 50,847,845 0.44% LUKOIL PJSC 903,145 $ 45,475,109 0.39%

Total Russian Federation $ 178,587,025 1.54%

South Africa Mondi PLC 2,351,896 $ 64,264,632 0.55%

Total South Africa $ 64,264,632 0.55%

Spain CaixaBank SA 14,592,344 $ 75,499,164 0.65% Iberdrola SA 9,175,338 $ 75,073,461 0.65% ACS Actividades de Construccion y Servicios SA 1,558,274 $ 58,986,258 0.51% Aena SA 255,237 $ 49,925,920 0.43%

Total Spain $ 259,484,802 2.23%

Sweden Volvo AB - B Shares 5,920,299 $ 101,190,259 0.87% Swedbank AB 2,349,619 $ 63,554,766 0.55% Investor AB 1,352,938 $ 63,293,357 0.54%

Total Sweden $ 228,038,383 1.96%

Switzerland Nestle SA 2,267,968 $ 192,269,134 1.65% Roche Holding AG 602,694 $ 153,126,939 1.32% Lonza Group AG 496,591 $ 125,900,233 1.08% Cie Financiere Richemont SA 1,061,472 $ 94,889,267 0.82% Swiss Life Holding AG 241,190 $ 86,346,717 0.74% ABB Ltd 3,345,542 $ 77,410,508 0.67% Ferguson PLC 961,493 $ 57,257,327 0.49%

SCHEDULE OF INVESTMENTS

MARKET % TOTAL NET ISSUER SHARES VALUE ASSETS Logitech International SA 1,246,376 $ 44,414,373 0.38% Adecco Group AG 524,964 $ 38,051,116 0.33% Straumann Holding AG 37,924 $ 24,350,725 0.21%

Total Switzerland $ 894,016,340 7.69%

Taiwan, Province Of China Taiwan Semiconductor Manufacturing Co Ltd 24,673,544 $ 177,587,828 1.53%

Total Taiwan, Province Of China $ 177,587,828 1.53%

Thailand PTT PCL 4,463,600 $ 53,692,864 0.46%

Total Thailand $ 53,692,864 0.46%

United Kingdom Unilever NV 2,398,696 $ 142,804,280 1.23% Rio Tinto Ltd 2,144,251 $ 116,250,631 1.00% Diageo PLC 3,153,483 $ 105,477,078 0.91% 3i Group PLC 7,372,984 $ 92,498,991 0.80% Lloyds Banking Group PLC 103,556,334 $ 85,360,527 0.73% Taylor Wimpey PLC 30,758,390 $ 79,918,518 0.69% Ashtead Group PLC 3,557,576 $ 76,532,074 0.66% Reckitt Benckiser Group PLC 760,827 $ 72,147,686 0.62% Intertek Group PLC 1,019,145 $ 67,432,711 0.58% Legal & General Group PLC 17,705,431 $ 59,621,838 0.51% Smiths Group PLC 2,953,295 $ 59,015,708 0.51% Persimmon PLC 1,548,088 $ 53,308,963 0.46% Compass Group PLC 1,979,811 $ 42,335,721 0.36% Land Securities Group PLC 3,216,897 $ 42,051,363 0.36% Unilever PLC 667,809 $ 38,962,846 0.34% Auto Trader Group PLC 6,068,670 $ 27,764,805 0.24% Intermediate Capital Group PLC 1,799,252 $ 20,686,433 0.18%

Total United Kingdom $ 1,182,170,173 10.17%

United States Goldman Sachs Financial Square Funds - Government Fund 203,698,094 $ 203,698,094 1.75% Shire PLC 1,277,944 $ 63,560,781 0.55%

Total United States $ 267,258,874 2.30%

Total Market Value $ 11,596,768,269 99.80%

Cash 22,987,634 0.20%

Total Net Assets $ 11,619,755,903 100.00%

International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments.

Portfolio holdings may not reflect the current portfolio composition. The holdings listed do not constitute a recommendation to purchase or sell a particular security.

Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company. Principal mutual funds are part of the Principal Funds, Inc. series. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities . Principal Funds Distributor, Principal Securities and Principal Life are members of Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths.

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Not FDIC or NCUA Insured PQ 4111 May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee 8-17 Not Insured by any Federal Government Agency