Principal US Corporate Bond Fund
A Class of Units of
WORLDVIEW INVESTMENT FUND
A Multi Fund Unit Trust
AUDITED FINANCIAL STATEMENTS
for the year ended January 31, 2018
No subscription can be received solely on the basis of financial statements. Subscriptions are only valid if made on the basis of the current Offering Circular accompanied by the latest audited annual financial statements.
Principal US Corporate Bond Fund
Index
Page Management and Administration ...... 3 Report of the Réviseur d’Entreprises Agréé ...... 4 Statement of Net Assets ...... 7 Statement of Operations ...... 8 Statement of Changes in Net Assets ...... 9 Statement of Changes in Units Outstanding ...... 10 Statistical Information ...... 10 Statement of Investments ...... 11 Notes to the Financial Statements ...... 33
2 Principal US Corporate Bond Fund
Management and Administration
Trustee and Investment Manager Global Funds Trust Company PO Box 309 Ugland House Grand Cayman, KY1-1104 Cayman Islands
Principal Office of the Trustee Global Funds Trust Company PO Box 1093 Queensgate House Grand Cayman, KY1-1102 Cayman Islands
Custodian and Administrator Nomura Bank (Luxembourg) S.A. Bâtiment A - 33, rue de Gasperich L-5826 Hesperange Grand-Duchy of Luxembourg
Cabinet de révision agréé Deloitte Audit Société à Responsabilité Limitée 560, rue de Neudorf L-2220 Luxembourg Grand-Duchy of Luxembourg
Investment Sub-Manager Principal Global Investors, LLC 801 Grand Avenue, Des Moines, Iowa, United States of America
Legal Advisers
As to matters of Cayman Islands law: Cayman Islands Legal Adviser to the Master Trust and the Portfolio Maples and Calder (Hong Kong) LLP 53/F, The Center 99 Queen’s Road Central Hong Kong
Luxembourg Legal Adviser to the Custodian Elvinger, Hoss & Prussen 2, Place Winston Churchill B.P. 425 L-2014 Luxembourg Grand-Duchy of Luxembourg
3 Deloitte. Deloitte Audit Société à responsabilité limitée
560, rue de Neudorf L-2220 Luxembourg BP 1173 L-1011 Luxembourg
Tel: +352 451 451 www.deloitte.lu
To the Unitholders of Principal US Corporate Bond Fund
REPORT OF THE REVISEUR D'ENTREPRISES AGREE
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Principal US Corporate Bond Fund (the "Portfolio"), which comprise the statement of net assets and the statement of investments as at January 31, 2018 and the statement of operations and the statement of changes in net assets for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
ln our opinion, the accompanying financial statements give a true and fair view of the financial position of Principal US
Corporate Bond Fund as at January 31, 2018, and of the results of its operations and changes in its net assets for the year then ended in accordance with generally accepted accounting principles in Luxembourg relating to the preparation and presentation of the financial statements.
Basis for Opinion
We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibilities under those Law and standards are further described in the "Responsibilities of the
Réviseur d'Entreprises Agréé for the Audit of the Financial Statements" section of our report. We are also independent of the
Company in accordance with International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to
our audit of the financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Société à responsabilité limitée au capital de 35.000 ( RCS Luxembourg B 67.895 Autorisation d'établissement 10022179 4 Deloitte.
Other information
The Trustee is responsible for the other information. The other information comprises the information stated in the annual report but does not include the financial statements and our report of the Réviseur d'Entreprises Agréé thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
ln connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.
Responsibilities of the Trustee for the Financial Statements
The Trustee responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting principles in Luxembourg relating to the preparation and presentation of the financial statements, and for
such internal control as the Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
ln preparing the financial statements, the Trustee is responsible for assessing the Portfolio's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the Portfolio or to cease operations, or has no realistic alternative but to do so.
Responsibilities of the Réviseur d'Entreprises Agréé for the Audit of the Financial Statements
The objectives of our audit are to obtain a reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the Réviseur d'Entreprises Agréé that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
5 Deloitte.
As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustee of the Portfolio.
• Conclude on the appropriateness of Trustee's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report of the Réviseur d'Entreprises Agréé to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report of the Réviseur d'Entreprises Agréé. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
For Deloitte Audit, Cabinet de Révision Agréé
Nicolas Hennebert, Réviseur d'Entreprises Agréé Partner
July 11, 2018
6 Principal US Corporate Bond Fund
Statement of Net Assets as at January 31, 2018 (expressed in Japanese Yen)
Notes ASSETS Investment in securities at market value 2 30,635,850,483 (at cost: JPY 31,010,603,711) Cash at bank 1,733,560,787 Unrealised gain on forward foreign exchange contracts 11 114,095,784 Due from brokers 373,285,945 Accrued income 303,335,075 Interest on cash and cash equivalents 20,573
Total Assets 33,160,148,647
LIABILITIES Payable to brokers 442,922,391 Accrued expenses 7 26,959,932
Total Liabilities 469,882,323
NET ASSETS 32,690,266,324
Number of Units Outstanding 2,849,597
Net Asset Value per Unit 11,472
The accompanying notes form an integral part of these financial statements.
7 Principal US Corporate Bond Fund
Statement of Operations for the year ended January 31, 2018 (expressed in Japanese Yen)
Notes INCOME Interest on bank accounts 8,429,466 Interest on bonds (net of withholding tax) 1,228,322,254 Dividends received (net of withholding tax) 4,111,750
Total Income 1,240,863,470
EXPENSES Investment Manager and Sub-Manager fees 6 79,108,277 Administration fees 5 13,765,243 Custodian fees 4 6,541,201 Correspondent bank fees 1,797,692 Bank charges 1,539,412 Trustee fees 3 300,000 Legal fees 66,850 Out-of-pocket expenses 1,626,954 Professional fees 1,226,732 Printing and publication fees 323,263
Total Expenses 106,295,624
NET INVESTMENT INCOME 1,134,567,846
Net realised profit on investments 705,767,141 Net realised profit on foreign currencies and on forward foreign exchange contracts 737,581,536
NET REALISED PROFIT FOR THE YEAR 1,443,348,677
Change in net unrealised result on investments (1,335,303,813) Change in net unrealised result on forward foreign exchange contracts 9,101,518
NET UNREALISED LOSS FOR THE YEAR (1,326,202,295)
NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 1,251,714,228
The accompanying notes form an integral part of these financial statements.
8 Principal US Corporate Bond Fund
Statement of Changes in Net Assets for the year ended January 31, 2018 (expressed in Japanese Yen)
Notes Net assets at the beginning of the year 32,011,321,093
NET INVESTMENT INCOME 1,134,567,846 NET REALISED PROFIT FOR THE YEAR 1,443,348,677 NET UNREALISED LOSS FOR THE YEAR (1,326,202,295)
NET INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 1,251,714,228
Dividend paid to unitholders 8 (572,768,997)
NET ASSETS AT THE END OF THE YEAR 32,690,266,324
The accompanying notes form an integral part of these financial statements.
9 Principal US Corporate Bond Fund
Statement of Changes in Units Outstanding for the year ended January 31, 2018 (Unaudited)
Number of units outstanding at the beginning of the year 2,849,597
Number of units issued 0 Number of units repurchased 0
Number of units outstanding at the end of the year 2,849,597
Statistical Information as at January 31, 2018 (Unaudited) (expressed in Japanese Yen)
2018 2017 2016
Net Assets at the end of the year 32,690,266,324 32,011,321,093 31,357,091,731 Net Asset Value per unit at the end of the year 11,472 11,234 11,004
10 Principal US Corporate Bond Fund
Statement of Investments as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
ARGENTINA
GOVERNMENT BOND USD 450,000 REP OF ARGENTINA 5.625% 26/01/22 WI 51,599,252 50,208,346 0.15 USD 60,000 ARGENTINA 5.8750% 11/01/28 6,695,243 6,351,694 0.02 USD 60,000 ARGENTINA 6.8750% 11/01/48 6,694,567 6,335,972 0.02
64,989,062 62,896,012 0.19 STRAIGHT FIXED BOND USD 200,000 ARCOR SAIC 6% 06/07/23 144A 21,961,543 22,978,718 0.07 USD 90,000 YPF SOCIEDAD 6.9500% 21/07/27 144A 10,316,417 10,129,454 0.03
32,277,960 33,108,172 0.10
Total ARGENTINA 97,267,022 96,004,184 0.29
AUSTRALIA
FLOATING RATE NOTE USD 375,000 BHP FINANCE USA FRN 19/10/75 144A 50,159,579 47,500,681 0.15
50,159,579 47,500,681 0.15 STRAIGHT FIXED BOND USD 115,000 BHP FINANCE USA 5.0000% 30/09/43 14,670,881 15,041,522 0.04 USD 125,000 FMG RES AUG 06 9.75% 01/03/22 144A 15,283,645 14,994,633 0.05
29,954,526 30,036,155 0.09
Total AUSTRALIA 80,114,105 77,536,836 0.24
AUSTRIA
STRAIGHT FIXED BOND USD 15,000 SAPPI PAPIER HDGS 7.5% 15/6/32 144A 979,270 1,709,127 0.01
979,270 1,709,127 0.01
Total AUSTRIA 979,270 1,709,127 0.01
BAHAMAS
STRAIGHT FIXED BOND USD 85,000 SILVERSEA CRUISE 7.25% 01/02/25 144 10,023,517 9,967,053 0.03
10,023,517 9,967,053 0.03
Total BAHAMAS 10,023,517 9,967,053 0.03
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
11 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
BERMUDA
OTHER BOND USD 200,000 TENGIZCHEVROIL 4% 15/08/26 144A 21,040,480 21,666,717 0.06
21,040,480 21,666,717 0.06 STRAIGHT FIXED BOND USD 35,000 WEATHERFORD BERM 9.8750% 15/02/24 3,934,988 4,149,766 0.01 USD 30,000 WEATHERFORD BERMUDA 8.25% 15/06/23 2,950,841 3,450,887 0.01 USD 25,000 WEATHERFORD INTL 4.5% 15/04/22 2,559,692 2,569,809 0.01 USD 20,000 IHS MARKIT LTD 4.75% 15/02/25 144A 2,313,882 2,262,520 0.01
11,759,403 12,432,982 0.04
Total BERMUDA 32,799,883 34,099,699 0.10
BRAZIL
STRAIGHT FIXED BOND USD 355,000 VALE SA 5.625% 11/09/42 43,761,843 43,490,283 0.13
43,761,843 43,490,283 0.13
Total BRAZIL 43,761,843 43,490,283 0.13
BRITISH VIRGIN ISLANDS
STRAIGHT FIXED BOND USD 250,000 CNOOC 3% 09/05/23 21,857,384 26,557,905 0.08 USD 200,000 SINOPEC OVERS 2.5000% 13/09/22 144A 21,576,142 20,973,625 0.06 USD 75,000 CNTL AMR BOTTLING 5.75% 31/01/27 RE 8,936,677 8,553,794 0.03
52,370,203 56,085,324 0.17
Total BRITISH VIRGIN ISLANDS 52,370,203 56,085,324 0.17
CANADA
FLOATING RATE NOTE USD 400,000 ENBRIDGE INC FRN 15/01/77 16-A 46,200,019 46,120,598 0.14
46,200,019 46,120,598 0.14 STEP-UP/DOWN BOND USD 590,000 GLENCORE FI CANADA STUP 25/10/42 14 72,868,056 71,505,005 0.22
72,868,056 71,505,005 0.22 STRAIGHT FIXED BOND USD 1,065,000 BROOKFIELD FIN 3.9000% 25/01/28 118,596,662 113,801,511 0.34 USD 910,000 BROOKFIELD FIN 4.7000% 20/09/47 102,245,512 99,852,654 0.30
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
12 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
CANADA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 600,000 SUNCOR ENERGY 4.0000% 15/11/47 68,012,814 65,748,415 0.19 USD 520,000 BARRICK GOLD CORP 3.85% 01/04/22 55,115,475 58,488,968 0.18 USD 490,000 ENCANA CORP 5.15% 15/11/41 52,280,408 56,697,607 0.17 USD 495,000 FORTIS INC 2.1000% 04/10/21 WI 50,099,569 52,134,788 0.16 USD 390,000 YAMANA GOLD I 4.6250% 15/12/27 144A 43,492,353 42,369,051 0.13 USD 375,000 CANADIAN NATL RES 3.9% 01/02/25 38,642,329 41,466,892 0.13 USD 330,000 TRANS-CANADA PIPE 4.625% 01/03/34 34,430,836 39,277,272 0.12 USD 375,000 FORTIS INC 3.0550% 04/10/26 WI 38,051,249 38,578,711 0.12 USD 260,000 TRANS-CANADA PIPE 7.125% 15/01/19 32,324,120 29,544,947 0.09 USD 210,000 CANADIAN NATL RES 4.95% 01/06/47 23,328,526 25,113,889 0.08 USD 160,000 BOMBARDIER INC 7.5% 15/03/25 144A 17,596,070 18,078,404 0.06 USD 120,000 ENCANA CORP 6.625% 15/08/37 14,478,411 16,445,931 0.05 USD 110,000 ENCANA CORP 6.5% 01/02/38 13,164,276 15,161,467 0.05 USD 135,000 TECK RESOURCES LTD 3.75% 01/02/23 14,410,965 14,721,336 0.05 USD 120,000 VRX ESCROW 5.375% 15/3/20 144A 12,963,960 12,973,115 0.04 USD 100,000 IAMGOLD CORP 7% 15/04/25 144A 11,453,497 11,339,793 0.03 USD 85,000 GW HONOS SEC 8.75% 15/05/25 144A 9,572,507 10,031,774 0.03 USD 75,000 LG FINANCECO 5.875% 01/11/24 144A 7,998,331 8,678,205 0.03 USD 75,000 TASEKO MINES 8.7500% 15/06/22 144A 8,134,823 8,504,845 0.03 USD 60,000 NOVA CHEMICALS 5.25% 01/08/23 144A 6,994,631 6,708,589 0.02 USD 55,000 CLEARWATER SEAFOOD 6.875% 1/5/25 14 6,334,645 6,087,321 0.02 USD 50,000 BOMBARDIER INC 8.75% 01/12/21 144A 5,399,015 6,043,811 0.02 USD 55,000 NOVA CHEMICALS CORP 5.25% 01/06/27 6,154,225 5,967,668 0.02 USD 55,000 MEG ENERGY CORP 6.5% 15/01/25 144A 6,278,079 5,848,016 0.02 USD 45,000 VALEANT PHARM 5.5000% 01/11/25 144A 5,077,123 4,931,586 0.02 USD 40,000 SEVEN GENS EN 5.3750% 30/09/25 144A 4,510,457 4,394,510 0.01 USD 25,000 BOMBARDIER INC 6.125% 15/01/23 144A 2,281,083 2,746,569 0.01 USD 15,000 TECK RESOURCES 8.5% 01/06/24 144A 1,645,050 1,841,697 0.01 USD 15,000 NORTHWEST/DOM 7.1250% 01/11/22 144A 1,677,349 1,680,574 0.01 USD 15,000 VALEANT PHARMA 5.625% 01/12/21 144A 1,337,720 1,572,560 0.00
814,082,070 826,832,476 2.54
Total CANADA 933,150,145 944,458,079 2.90
CAYMAN ISLANDS
STRAIGHT FIXED BOND USD 1,780,000 ALIBABA GROUP 3.4000% 06/12/27 199,063,803 187,903,457 0.57 USD 705,000 VALE OVERSEAS 4.3750% 11/01/22 82,581,654 79,562,111 0.24 USD 465,000 VALE OVERSEAS LTD 6.25% 10/08/26 56,148,966 58,662,611 0.18 USD 515,000 ALIBABA GROUP 4.2000% 06/12/47 57,340,883 55,978,677 0.17 USD 315,000 VALE OVERSEAS 6.875% 21/11/36 43,624,208 43,044,305 0.13 USD 200,000 ALIBABA GP HDGS 3.6% 28/11/24 23,690,559 22,016,777 0.07 USD 200,000 BAIDU INC 3% 30/06/20 23,610,199 21,739,923 0.07
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
13 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
CAYMAN ISLANDS (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 200,000 TENCENT HOLDI 2.9850% 19/01/23 144A 22,345,872 21,546,739 0.07 USD 200,000 TENCENT HOLDI 3.5950% 19/01/28 144A 22,343,414 21,433,678 0.07
530,749,558 511,888,278 1.57
Total CAYMAN ISLANDS 530,749,558 511,888,278 1.57
CHILE
STRAIGHT FIXED BOND USD 200,000 CODELCO INC 4.5% 16/09/25 144A 22,930,093 23,028,145 0.07
22,930,093 23,028,145 0.07
Total CHILE 22,930,093 23,028,145 0.07
COLOMBIA
STRAIGHT FIXED BOND USD 50,000 ECOPETROL SA 7.375% 18/09/43 5,967,116 6,730,453 0.02
5,967,116 6,730,453 0.02
Total COLOMBIA 5,967,116 6,730,453 0.02
CROATIA
GOVERNMENT BOND USD 200,000 REP OF CROATIA 6.375% 24/03/21 25,434,004 23,737,097 0.07
25,434,004 23,737,097 0.07
Total CROATIA 25,434,004 23,737,097 0.07
CURACAO ISLANDS
STRAIGHT FIXED BOND USD 150,000 SUAM FINANCE BV 4.875% 17/04/24 144 18,530,713 17,336,015 0.05
18,530,713 17,336,015 0.05
Total CURACAO ISLANDS 18,530,713 17,336,015 0.05
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
14 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
DOMINICAN REPUBLIC
GOVERNMENT BOND USD 125,000 DOMINICAN REP 5.95% 25/01/27 REGS 14,256,000 14,565,652 0.04
14,256,000 14,565,652 0.04
Total DOMINICAN REPUBLIC 14,256,000 14,565,652 0.04
FRANCE
FLOATING RATE NOTE USD 560,000 EDF FRN 29/12/49 144A 57,986,781 62,741,417 0.19
57,986,781 62,741,417 0.19 STRAIGHT FIXED BOND USD 1,960,000 BPCE SA 5.7% 22/10/23 144A 241,957,530 233,433,281 0.71 USD 985,000 BPCE 4.5000% 15/03/25 144A 115,968,341 110,331,314 0.34 USD 740,000 BPCE SA 4.875% 01/04/26 144A 86,725,043 84,881,278 0.26 USD 5,000 PERNOD RICARD 5.75% 07/04/21 144A 591,537 590,511 0.00
445,242,451 429,236,384 1.31
Total FRANCE 503,229,232 491,977,801 1.50
GERMANY
PAY-IN KIND BOND USD 20,000 SCHAEFFLER PIK 4.75% 15/09/26 144A 2,029,199 2,197,255 0.01
2,029,199 2,197,255 0.01
Total GERMANY 2,029,199 2,197,255 0.01
HUNGARY
GOVERNMENT BOND USD 60,000 HUNGARY GVT 5.375% 21/02/23 8,208,615 7,187,308 0.02
8,208,615 7,187,308 0.02
Total HUNGARY 8,208,615 7,187,308 0.02
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
15 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
INDONESIA GOVERNMENT BOND USD 200,000 REP OF INDONES 5.375% 17/10/23 144A 24,310,912 23,957,693 0.07
24,310,912 23,957,693 0.07
Total INDONESIA 24,310,912 23,957,693 0.07
IRELAND STRAIGHT FIXED BOND USD 1,480,000 SHIRE ACQ INV IRELAND 2.4% 23/09/21 150,885,755 157,199,452 0.48 USD 1,405,000 GE CAPITAL INTL 4.418% 15/11/35 164,756,599 157,177,920 0.48 USD 1,035,000 SHIRE ACQ INV IREL 2.875% 23/09/23 105,618,429 109,180,114 0.33 USD 725,000 SHIRE ACQ INV IRELAND 3.2% 23/09/26 75,507,789 75,551,803 0.23 USD 400,000 JOHNSON CONTROLS 5.125% 14/09/45 49,075,536 50,732,266 0.16
545,844,108 549,841,555 1.68
Total IRELAND 545,844,108 549,841,555 1.68
ISRAEL GOVERNMENT BOND USD 200,000 ISRAEL GVT 4.5% 30/01/43 23,676,333 23,244,542 0.07
23,676,333 23,244,542 0.07
Total ISRAEL 23,676,333 23,244,542 0.07
ITALY STRAIGHT FIXED BOND USD 3,635,000 INTESA SANPAOLO 3.8750% 14/07/27 408,368,240 387,990,135 1.19 USD 1,960,000 INTESA SANPAOLO 3.1250% 14/07/22 219,960,260 210,148,966 0.64 USD 585,000 INTESA SANPAOLO 4.3750% 12/01/48 65,935,796 63,621,855 0.19
694,264,296 661,760,956 2.02
Total ITALY 694,264,296 661,760,956 2.02
LIBERIA STRAIGHT FIXED BOND USD 75,000 ELETSON HLDGS 9.625% 15/01/22 144A 7,723,594 4,283,015 0.01
7,723,594 4,283,015 0.01
Total LIBERIA 7,723,594 4,283,015 0.01
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
16 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
LUXEMBOURG
PAY-IN KIND BOND USD 10,000 ARD SECURITIES PIK 31/01/23 144A 1,117,450 1,125,821 0.00
1,117,450 1,125,821 0.00 STEP-UP/DOWN BOND USD 200,000 ARCELORMITTAL STUP 15/10/39 20,116,989 28,063,949 0.08 USD 15,000 ARCELORMITTAL 5.5% 01/03/21 1,780,217 1,745,839 0.01
21,897,206 29,809,788 0.09 STRAIGHT FIXED BOND USD 950,000 ACTAVIS FUNDING 3.45% 15/03/22 109,120,709 103,932,083 0.32 USD 790,000 ACTAVIS FUNDING 4.85% 15/06/44 92,107,549 91,669,771 0.28 USD 675,000 ALLERGAN FUNDING 3.8500% 15/06/24 79,250,671 74,357,064 0.23 USD 515,000 ACTAVIS FUNDING 4.55% 15/03/35 60,887,493 58,546,314 0.18 USD 200,000 ALTICE FIN SA 6.625% 15/02/23 144A 23,653,327 22,035,639 0.07 USD 190,000 SCHLUMBERGER INV 3.3% 14/09/21 144A 21,811,475 21,043,269 0.06 USD 75,000 INTELSAT JACK 8% 15/02/24 144A 9,001,397 8,566,031 0.03 USD 95,000 INTELSAT JACK 5.5% 01/08/23 7,527,264 8,111,895 0.02
403,359,885 388,262,066 1.19
Total LUXEMBOURG 426,374,541 419,197,675 1.28
MARSHALL ISLANDS
STRAIGHT FIXED BOND USD 320,000 NAVIOS MARITIME 8.125% 15/11/21 144 32,707,714 29,673,819 0.09 USD 80,000 NAVIOS MARITIME 7.375% 15/1/22 144A 7,974,407 7,157,395 0.02 USD 60,000 NAVIOS SA LOGIST 7.25% 01/05/22 144 6,176,997 6,347,021 0.02
46,859,118 43,178,235 0.13
Total MARSHALL ISLANDS 46,859,118 43,178,235 0.13
MEXICO
GOVERNMENT BOND USD 200,000 UNITED MEXICAN 3.7500% 11/01/28 22,363,641 21,364,606 0.07
22,363,641 21,364,606 0.07 STRAIGHT FIXED BOND USD 300,000 GRUPO BIMBO SAB 4.875% 27/06/44 144 36,308,791 33,226,084 0.10 USD 250,000 PETROLEOS MEXICAN 6.875% 4/8/26 29,127,494 30,769,727 0.09 USD 200,000 GRUMA SAB DE CV 4.875% 01/12/24 144 23,710,021 23,114,687 0.07 USD 200,000 GRUPO TELEVISA SAB 5% 13/05/45 22,388,697 21,362,539 0.07 USD 150,000 AMERICA MOVIL SAB 6.125% 30/03/40 19,524,269 20,209,535 0.06
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
17 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
MEXICO (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 100,000 PETROLEOS MEX 6.5000% 13/03/27 144A 12,049,252 11,898,570 0.04 USD 65,000 PEMEX 6.5% 13/03/27 144A 7,778,633 7,734,071 0.02
150,887,157 148,315,213 0.45
Total MEXICO 173,250,798 169,679,819 0.52
NETHERLANDS
FLOATING RATE NOTE USD 220,000 ING GROEP NV FRN 31/12/49 24,056,595 24,662,772 0.08
24,056,595 24,662,772 0.08 STRAIGHT FIXED BOND USD 845,000 RABOBANK NED 5.25% 04/08/45 103,888,999 108,816,913 0.33 USD 835,000 SIEMENS FINAN 2.3500% 15/10/26 144A 89,325,719 83,952,780 0.26 USD 755,000 NXP BV/NXP FD 3.875% 01/09/22 144A 87,948,659 82,843,716 0.25 USD 670,000 SIEMENS FINANCIER 2.7% 16/03/22 144 76,156,467 72,458,296 0.22 USD 480,000 SHELL INTL FIN 2.875% 10/05/26 51,291,973 51,155,697 0.16 USD 470,000 ENEL FINANCE INTL 2.875% 25/05/22 1 52,266,577 50,424,204 0.15 USD 380,000 RABOBANK NED 4.375% 04/08/25 43,254,711 42,945,965 0.13 USD 310,000 PETROBRAS GBL FIN 7.375% 17/01/27 38,286,351 37,400,814 0.11 USD 310,000 SHELL INTL FIN 4% 10/05/46 32,636,181 34,975,957 0.11 USD 205,000 SCHAEFFLER FIN 4.75% 15/05/23 144A 22,854,630 22,828,472 0.07 USD 200,000 VIMPELCOM HLD 4.9500% 16/06/24 REGS 21,993,998 21,842,019 0.07 USD 150,000 ZIGGO SEC 5.5% 15/01/27 144A 15,306,004 16,193,877 0.05 USD 120,000 PETROBRAS GLO 5.2990% 27/01/25 144A 13,337,998 13,134,581 0.04 USD 30,000 OI EUROPEAN G 4.0000% 15/03/23 144A 3,378,150 3,236,736 0.01
651,926,417 642,210,027 1.96
Total NETHERLANDS 675,983,012 666,872,799 2.04
PANAMA
GOVERNMENT BOND USD 200,000 REP OF PANAMA 3.875% 17/03/28 23,536,745 22,538,832 0.07
23,536,745 22,538,832 0.07
Total PANAMA 23,536,745 22,538,832 0.07
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
18 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
PERU
GOVERNMENT BOND USD 125,000 REP OF PERU 5.625% 18/11/50 15,371,614 17,183,050 0.05
15,371,614 17,183,050 0.05 OTHER BOND USD 44,000 CORP LINDLEY 6.75% 23/11/21 144A 3,510,846 5,235,108 0.01 USD 14,000 CORP LINDLEY 6.75% 23/11/21 REGS 1,446,192 1,673,231 0.01
4,957,038 6,908,339 0.02 STRAIGHT FIXED BOND USD 250,000 BBVA BCO CONTIN 5% 26/08/22 144A 19,635,014 29,097,311 0.09
19,635,014 29,097,311 0.09
Total PERU 39,963,666 53,188,700 0.16
SAUDI ARABIA
GOVERNMENT BOND USD 200,000 SAUDI INT BON 2.8750% 04/03/23 144A 22,316,818 21,269,341 0.07
22,316,818 21,269,341 0.07
Total SAUDI ARABIA 22,316,818 21,269,341 0.07
SPAIN
FLOATING RATE NOTE USD 1,000,000 BANCO BILBAO VIZ FRN 16/02/66 113,820,101 113,180,383 0.35
113,820,101 113,180,383 0.35
Total SPAIN 113,820,101 113,180,383 0.35
SWEDEN
FLOATING RATE NOTE USD 1,325,000 SKANDINAVISKA ENS FRN 29/11/49 155,301,354 148,450,675 0.45
155,301,354 148,450,675 0.45
Total SWEDEN 155,301,354 148,450,675 0.45
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
19 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
SWITZERLAND
FLOATING RATE NOTE USD 3,330,000 UBS GROUP FUNDIN FRN 15/08/23 144A 373,604,580 365,900,173 1.13 USD 960,000 CREDIT SUISSE FRN 14/12/23 144A 105,551,734 102,160,188 0.31 USD 660,000 CREDIT SUISSE FRN 14/12/23 144A 71,550,594 73,433,728 0.22
550,706,908 541,494,089 1.66
Total SWITZERLAND 550,706,908 541,494,089 1.66
TURKEY
GOVERNMENT BOND USD 200,000 REP OF TURKEY 6% 25/03/27 23,374,998 22,869,943 0.07
23,374,998 22,869,943 0.07
Total TURKEY 23,374,998 22,869,943 0.07
UNITED ARAB EMIRATES
STRAIGHT FIXED BOND USD 250,000 ABU DHABI NTL NRG 4.375% 22/6/26 14 27,387,299 27,917,103 0.09
27,387,299 27,917,103 0.09
Total UNITED ARAB EMIRATES 27,387,299 27,917,103 0.09
UNITED KINGDOM
FLOATING RATE NOTE USD 4,000,000 ROYAL BK SCOTLAND FRN 15/05/23 456,068,306 446,229,405 1.36 USD 2,835,000 NATIONWIDE BLDG FRN 18/10/32 144A 319,351,167 304,621,079 0.93 USD 985,000 RECKITT BEN TSY FRN 24/06/22 144A 109,576,367 107,068,370 0.33
884,995,840 857,918,854 2.62 STRAIGHT FIXED BOND USD 3,240,000 ROYAL BK SCOTLAND 5.125% 28/05/24 388,563,609 368,242,097 1.14 USD 1,805,000 RECKITT BEN T 2.7500% 26/06/24 144A 201,161,776 188,547,160 0.58 USD 1,435,000 IMPERIAL TOBACCO 4.25% 21/07/25 144 171,579,464 160,878,996 0.49 USD 1,360,000 LLOYDS BANK PLC 4.582% 10/12/25 157,673,110 152,524,830 0.47 USD 1,275,000 IMPERIAL TOBACCO 3.75% 21/07/22 144 142,976,449 141,790,989 0.43 USD 1,135,000 PPL WEM HLDGS 5.375% 01/05/21 144A 146,297,501 130,979,176 0.40 USD 1,170,000 HSBC HDGS PLC 3.6% 25/05/23 131,908,349 129,374,537 0.40 USD 1,085,000 LLOYDS BANK 4.65% 24/03/26 129,734,850 122,138,146 0.37 USD 1,060,000 SANTANDER UK PLC 5% 07/11/23 144A 127,453,387 121,690,005 0.37 USD 645,000 HSBC HDGS PLC 4.375% 23/11/26 72,706,967 72,250,215 0.22 USD 440,000 BP CAP MARKETS 3.723% 28/11/28 48,892,775 49,062,692 0.15
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
20 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED KINGDOM (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 395,000 JAGUAR LAND R 4.5000% 01/10/27 144A 44,486,897 42,321,631 0.13 USD 250,000 RBS 6.125% 15/12/22 25,581,887 29,517,373 0.09 USD 215,000 BP CAPITAL MARKETS 3.017% 16/01//27 21,914,970 22,767,978 0.07 USD 85,000 BAT INTL FIN 2.75% 15/06/20 144A 10,457,989 9,233,004 0.03
1,821,389,980 1,741,318,829 5.34
Total UNITED KINGDOM 2,706,385,820 2,599,237,683 7.96
UNITED STATES OF AMERICA
FLOATING RATE NOTE USD 1,920,000 BANK OF AMER CRP FRN 05/02/26 MTN 208,847,990 209,796,161 0.64 USD 1,645,000 CITIGROUP INC FRN 27/10/28 182,593,204 176,992,351 0.54 USD 1,495,000 MORGAN STANLEY FRN 08/05/24 GMTN 166,620,157 167,578,486 0.51 USD 1,400,000 JPMORGAN CHASE FRN 01/05/66 CC 157,003,143 148,021,014 0.45 USD 1,350,000 CHUBB CORP FRN 29/03/67 150,391,965 147,213,360 0.45 USD 1,305,000 MORGAN STANLEY FRN 24/01/29 GMTN 145,124,611 142,914,083 0.44 USD 1,235,000 GOLDMAN SACHS GP FRN 10/05/66 P 138,616,505 131,733,666 0.40 USD 1,165,000 WELLS FARGO & CO FRN 31/10/23 126,197,239 130,634,932 0.40 USD 1,180,000 GOLDMAN SACHS GP FRN 24/07/23 131,493,921 130,222,053 0.40 USD 1,030,000 PRUDENTIAL FIN FRN 15/06/43 126,694,831 121,864,000 0.37 USD 1,100,000 GEN MOTORS FIN FRN 05/01/23 124,002,982 120,242,741 0.37 USD 1,015,000 CITIGROUP INC FRN 24/07/23 115,185,641 111,958,275 0.34 USD 880,000 BANK OF NY MELLON FRN 29/12/49 F 93,552,849 96,200,606 0.29 USD 620,000 JPMORGAN CHASE FRN 10/01/25 GMTN 69,466,331 68,462,221 0.21 USD 575,000 QUALCOMM INC FRN 30/01/23 64,029,154 62,596,723 0.19 USD 470,000 BECTON DICKINSON FRN 06/06/22 5FRN 52,423,848 51,654,100 0.16 USD 440,000 BAT CAPITAL CORP FRN 14/08/20 144A 48,679,450 48,149,121 0.15 USD 375,000 NATIONAL RURAL FRN 30/04/43 37,560,194 42,262,472 0.13 USD 330,000 VOYA FINANCIAL INC FRN 15/05/53 33,923,207 38,139,233 0.12 USD 295,000 JPMORGAN CHASE CO FRN 29/12/49 V 30,087,139 32,569,953 0.10 USD 265,000 CITIGROUP INC FRN 24/04/48 28,896,897 30,431,899 0.09 USD 265,000 AT&T INC FRN 14/02/23 29,387,153 29,127,867 0.09 USD 240,000 JPMORGAN CHASE FRN 24/07/38 26,970,964 26,340,953 0.08 USD 230,000 MORGAN STANLEY FRN 29/12/49 27,935,797 25,862,615 0.08 USD 235,000 LIBERTY MUTUAL GP FRN 15/03/37 144A 15,749,642 25,050,881 0.08 USD 210,000 SOUTHERN CO 5.5% 15/03/57 B 23,843,388 23,991,579 0.07 USD 200,000 GOLDMAN SACHS GP FRN 05/06/23 22,265,815 21,345,614 0.07 USD 120,000 E*TRADE FINL FRN 15/09/66 B 13,419,669 13,004,051 0.04 USD 115,000 JPMORGAN CHASE FRN 15/11/48 12,694,771 12,638,782 0.04 USD 30,000 CIT GROUP INC FRN 15/12/65 A 3,331,052 3,328,515 0.01
2,406,989,509 2,390,328,307 7.31 OTHER BOND USD 1,740,000 DOMINION RES STUP 1.18% 01/07/19 191,564,109 190,182,470 0.58 USD 915,000 AMER AIRLINES 15-1 A 3.375% 1/05/27 96,363,686 87,342,456 0.27
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
21 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
OTHER BOND (CONTINUED) USD 885,000 UNITED AIR 2014 PT 2 3.75% 3/9/26 A 79,774,801 86,115,900 0.26 USD 535,000 SBA TOWER TRUST 2.898% 15/10/19 144 56,679,544 58,341,744 0.18 USD 500,000 UNTD AIR 18-1 A 3.7000% 01/03/30 A 54,387,498 54,523,467 0.17 USD 500,000 UNTD AIR 18-1 A 3.5000% 01/03/30 AA 54,387,498 54,441,885 0.17 USD 460,000 AMER AIR 17-1 AA PTT 3.65% 15/8/30 54,335,191 50,393,809 0.15 USD 485,000 AMER AIRLINES 3.7% 01/10/26 A 42,218,738 44,207,808 0.14 USD 480,000 AMER AIRLINES 13-2 4.95% 15/01/23 33,397,989 38,256,552 0.12 USD 415,000 US AIRWAYS 13-1A PTT 3.95% 15/05/27 31,758,548 35,539,154 0.11 USD 405,000 CONTL AIRLINES 5.983% 19/04/22 071A 36,842,169 34,206,111 0.10 USD 255,000 AMER AIRL 16-3 A PTT 3.25% 15/04/30 25,308,270 26,321,590 0.08 USD 200,000 AMER AIRL 13-1 B 5.625% 15/1/21 144 18,754,811 17,092,994 0.05 USD 140,000 MIRANT TRUST 10.06% 30/12/28 C 11,028,680 14,837,042 0.05 USD 1,130,000 AIR 2 US 8.027% 01/10/19 144A 2,608,357 2,946,590 0.01 USD 15,000 AMER AIRLINES 14-1 B 3.7% 01/05/23 1,373,116 1,234,034 0.00 USD 120,000 AIR 2 US 8.627% 01/10/20 144A 463,912 666,878 0.00
791,246,917 796,650,484 2.44 PAY-IN KIND BOND USD 80,000 POLARIS INT PIK 01/12/22 144A 9,066,932 9,060,957 0.03
9,066,932 9,060,957 0.03 STEP-UP/DOWN BOND USD 300,000 EXELON CORP 2.5% 01/06/22 33,458,060 32,854,432 0.11 USD 220,000 HP ENTERPRISE CO 2.85% 05/10/18 26,337,629 24,039,766 0.07 USD 90,000 LENNAR CORP 4.75% 15/11/22 8,224,255 10,148,054 0.03 USD 70,000 SEVENTY SEVEN OP 6.625% 15/11/19 * 6,653,518 0 0.00
74,673,462 67,042,252 0.21 STRAIGHT FIXED BOND USD 3,047,000 BANK OF AMERICA 4.25% 22/10/26 MTN 337,883,779 343,038,053 1.04 USD 1,880,000 GOLDMAN SACHS GRP 6.75% 01/10/37 254,561,278 269,769,364 0.82 USD 2,130,000 BRIGHTHOUSE F 3.7000% 22/06/27 144A 233,818,879 222,578,344 0.67 USD 1,975,000 BECTON DICKINSON 3.7% 06/06/27 220,560,042 211,650,049 0.64 USD 1,890,000 ANHEUSER BUSCH IN 3.65% 01/02/26 218,882,591 208,059,160 0.63 USD 1,920,000 SYNCHRONY BANK 3.0000% 15/06/22 211,809,915 206,458,353 0.62 USD 1,580,000 ALTRIA GROUP INC 5.375% 31/01/44 210,129,422 205,625,038 0.62 USD 1,760,000 BANK AMERICA CORP 4.2% 26/08/24 MT 197,697,113 198,580,833 0.60 USD 1,850,000 ALEXANDRIA REAL 3.4500% 30/04/25 208,690,174 197,371,060 0.59 USD 1,750,000 COMCAST CORP 2.75% 01/03/23 192,855,526 188,710,993 0.57 USD 1,473,000 VERIZON COMM 5.012% 21/08/54 187,428,806 165,387,396 0.50 USD 1,300,000 CHARTER COMM 6.484% 23/10/45 WI 169,707,829 165,090,704 0.51 USD 1,450,000 AT&T INC 4.9000% 14/08/37 161,839,222 159,857,115 0.49 USD 1,350,000 MORGAN STANLEY 5.75% 25/01/21 167,821,967 158,756,355 0.49 USD 1,460,000 AT&T 4.75% 15/05/46 158,257,571 153,835,294 0.47 USD 1,265,000 SABINE PASS LIQ 5.75% 15/05/24 154,888,170 150,836,012 0.46 USD 1,285,000 DISCOVER BANK 3.1% 04/06/20 BKNT 148,594,375 140,571,753 0.43 USD 1,300,000 JPMORGAN CHASE&CO 3.625% 01/12/27 142,183,116 140,095,515 0.43
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
22 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 1,240,000 BROOKFIELD FINANCE 4% 01/04/24 142,485,425 138,192,862 0.42 USD 1,236,000 REYNOLDS AMERICAN 3.25% 12/06/20 139,156,342 135,971,587 0.42 USD 1,225,000 HEALTH CARE REIT 4.0000% 01/06/25 143,259,029 135,884,776 0.42 USD 1,220,000 APPLE INC 3% 09/02/24 137,449,932 132,252,571 0.40 USD 1,230,000 BRIGHTHOUSE F 4.7000% 22/06/47 144A 137,085,551 132,024,765 0.40 USD 1,230,000 APPLE INC 2.7500% 13/01/25 140,396,027 130,222,303 0.40 USD 1,105,000 CVS HEALTH CORP 5% 01/12/24 WI 138,346,790 127,929,324 0.39 USD 1,145,000 CELGENE CORP 4.3500% 15/11/47 129,331,681 125,710,767 0.38 USD 1,175,000 UNITED TECHNO CORP 2.8% 04/05/24 130,335,457 124,967,729 0.38 USD 1,080,000 GENERAL ELECTRIC CO 4.5% 11/03/44 128,096,525 123,212,340 0.38 USD 1,100,000 DISCOVERY COMMUN 5.2000% 20/09/47 123,438,654 122,507,045 0.37 USD 1,125,000 BAT CAPITAL C 3.2220% 15/08/24 144A 124,107,464 120,493,340 0.37 USD 1,125,000 XILINX INC 2.95% 01/06/24 124,941,555 119,750,175 0.37 USD 1,080,000 GENERAL MOTORS CO 3.5% 02/10/18 118,882,762 118,428,911 0.36 USD 1,087,000 AT&T INC 4.3000% 15/02/30 144A 118,844,073 116,729,934 0.36 USD 1,005,000 PACKAGING CORP 4.5% 01/11/23 113,588,572 115,988,633 0.35 USD 960,000 VERIZON COM 5.25% 16/03/37 114,651,114 114,962,570 0.35 USD 860,000 JPMORGAN CHASE&CO 5.625% 16/08/43 111,946,969 113,915,030 0.35 USD 1,050,000 ANHEUSER BUSCH IN 2.65% 01/02/21 119,560,884 113,848,033 0.35 USD 1,035,000 KRAFT HEINZ FOODS CO 2.8% 02/07/20 126,695,993 112,633,121 0.34 USD 1,020,000 MICROSOFT CORP 3.7% 08/08/46 104,855,076 112,497,145 0.34 USD 1,035,000 APPLE INC 3.2% 11/05/27 117,956,645 111,245,996 0.34 USD 965,000 ORACLE CORP 4.0000% 15/11/47 110,065,813 107,776,811 0.33 USD 955,000 BAT CAPITAL C 4.5400% 15/08/47 144A 105,529,628 107,076,097 0.33 USD 940,000 WELLS FARGO&CO 4.4% 14/06/46 MTN 102,181,230 107,033,725 0.33 USD 970,000 HEALTHCARE TST AMER 3.5% 01/08/26 97,735,309 102,028,170 0.31 USD 960,000 GEN MOTORS FIN 3.8500% 05/01/28 107,971,877 101,797,628 0.31 USD 955,000 AMERICAN TOWER 3.6000% 15/01/28 106,974,277 100,720,607 0.31 USD 910,000 WYNDHAM WORLDWIDE 2.5% 01/03/18 85,136,362 98,965,548 0.30 USD 690,000 DIAMOND 1/2 FIN 8.35% 15/07/46 144A 98,779,340 98,495,921 0.30 USD 845,000 BECTON DICKINSON 4.669% 06/06/47 96,195,722 97,382,060 0.30 USD 841,000 GECC 5.3% 11/02/21 101,584,315 97,358,811 0.30 USD 885,000 COLUMBIA PIPELINE 3.3% 01/6/20 106,046,495 97,195,607 0.30 USD 710,000 MARATHON OIL CORP 6.6% 01/10/37 93,175,683 97,117,190 0.30 USD 860,000 CONCHO RESOURCES 4.375% 15/01/25 99,037,554 97,054,490 0.30 USD 645,000 GEN ELEC CAP 6.8750% 10/01/39 GMTN 105,846,707 95,624,328 0.29 USD 845,000 MORGAN STANLEY 4.1% 22/05/23 84,695,147 95,099,354 0.29 USD 850,000 ZIMMER HDGS INC 2% 01/04/18 88,265,858 92,446,819 0.28 USD 875,000 PACIFIC GAS&E 3.3000% 01/12/27 144A 96,768,340 91,269,346 0.28 USD 855,000 PHILIP MORRIS INTL 1.875% 25/02/21 96,739,308 90,693,646 0.28 USD 805,000 ENERGY TRANSF PARTN 4.75% 15/01/26 84,754,949 90,641,129 0.28 USD 730,000 APPLE INC 4.65% 23/02/46 87,713,207 90,304,106 0.28 USD 810,000 ENLINK MIDSTREAM 4.4% 01/04/24 82,573,329 89,959,595 0.28 USD 815,000 AMERICAN INTL GP 3.3% 01/03/21 95,799,050 89,602,056 0.27 USD 805,000 WR WRIGLEY JR 3.375% 21/10/20 144A 79,230,117 89,387,827 0.27 USD 820,000 ONCOR ELECTRIC 2.15% 01/06/19 83,435,382 88,713,127 0.27 USD 715,000 UNITEDHEALTH GROUP 4.625% 15/07/35 88,763,750 88,258,073 0.27
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
23 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 660,000 GENERAL MOTORS CO 6.6% 01/04/36 89,345,196 87,018,258 0.27 USD 605,000 21ST CENTURY FOX 6.4% 15/12/35 79,240,260 86,471,608 0.26 USD 815,000 AMER CAMPUS COMM 3.6250% 15/11/27 91,942,733 86,366,804 0.26 USD 750,000 UNION PACIFIC CORP 3.75% 15/03/24 89,905,237 84,862,281 0.26 USD 750,000 AMER INTL GROUP 4.5000% 16/07/44 87,960,104 84,310,303 0.26 USD 785,000 BAKER HUGHES 2.7730% 15/12/22 144A 88,041,640 84,067,499 0.26 USD 755,000 ARCH CAPITAL FIN 4.011% 15/12/26 87,409,540 83,958,976 0.26 USD 700,000 MARKEL CORP 5% 05/04/46 77,553,863 83,616,340 0.26 USD 770,000 EL PASO PIPELINE PART 4.7% 01/11/42 67,252,145 82,591,774 0.25 USD 700,000 DIAMOND 1/2 FIN 5.45% 15/06/23 144A 86,000,147 81,578,690 0.25 USD 765,000 CROWN CASTLE INT 3.8000% 15/02/28 85,834,001 81,520,322 0.25 USD 745,000 CITIGROUP INC 3.5000% 15/05/23 85,355,691 81,414,520 0.25 USD 760,000 HEALTHCARE TRUST 3.7500% 01/07/27 84,710,962 81,168,637 0.25 USD 745,000 AT&T INC 3.9000% 14/08/27 83,305,251 80,684,211 0.25 USD 735,000 COMCAST CORP 3.375% 15/02/25 79,578,167 80,423,723 0.25 USD 705,000 MPLX LP 4.5% 15/07/23 82,861,857 80,131,354 0.25 USD 680,000 DOMTAR CORP 6.25% 01/09/42 74,605,649 79,964,019 0.24 USD 730,000 CVS CAREMARK CORP 2.75% 01/12/22 81,739,511 77,348,344 0.24 USD 700,000 AMERICAN CAMPUS CMT 3.35% 01/10/20 83,916,885 77,258,213 0.24 USD 685,000 DISCOVERY COMMUN 5.0000% 20/09/37 76,122,674 76,105,629 0.23 USD 685,000 MORGAN STANLEY 3.7% 23/10/24 77,537,659 75,687,548 0.23 USD 645,000 ALTRIA GROUP INC 4% 31/01/24 78,081,048 73,434,795 0.22 USD 680,000 QUALCOMM INC 4.3% 20/05/47 76,940,892 72,964,374 0.22 USD 660,000 CC HOLDINGS GS 3.849% 15/04/23 62,638,570 72,809,213 0.22 USD 675,000 BAKER HUGHES 3.3370% 15/12/27 144A 75,704,595 71,590,114 0.22 USD 595,000 CELGENE CORP 5% 15/08/45 74,261,168 71,456,132 0.22 USD 645,000 ROCK-TENN CO 3.5% 01/03/20 52,099,113 71,303,197 0.22 USD 605,000 MORGAN STANLEY 5% 24/11/25 72,016,189 71,205,990 0.22 USD 675,000 MICROSOFT CORP 2% 08/08/23 68,926,790 70,241,772 0.21 USD 485,000 DTE ENERGY COMPANY 6.375% 15/04/33 50,177,731 67,332,215 0.21 USD 615,000 APPLE INC 3.35% 09/02/27 69,843,366 66,886,388 0.20 USD 615,000 TIME WARNER INC 3.6% 15/07/25 71,220,032 66,111,791 0.20 USD 605,000 GLENCORE FDG 3.8750% 27/10/27 144A 68,175,340 64,407,143 0.20 USD 590,000 ANADARKO PETRO CORP 3.45% 15/07/24 61,457,245 63,769,593 0.20 USD 615,000 MICROSOFT CORP 2.4% 08/08/26 65,735,544 62,960,291 0.19 USD 590,000 CONTINENTAL RES 3.8% 01/06/24 60,957,979 62,893,702 0.19 USD 590,000 CHARTER COMM OP 4.2000% 15/03/28 WI 63,806,468 62,793,843 0.19 USD 575,000 DOMINION GAS HLDGS 2.8% 15/11/20 70,458,043 62,593,282 0.19 USD 575,000 ABBOTT LABORATORIES 2.9% 30/11/21 62,569,853 62,349,668 0.19 USD 500,000 ABBOTT LABORATORIES 4.9% 30/11/46 60,557,479 62,041,831 0.19 USD 550,000 WELLTOWER INC 4.25% 01/04/26 64,657,288 61,955,224 0.19 USD 515,000 KINDER MORGAN 5.625% 15/11/23 144A 64,397,628 61,634,760 0.19 USD 530,000 CVS HEALTH CORP 4.75% 01/12/22 WI 69,266,653 61,009,711 0.19 USD 440,000 21ST CENTURY FOX 5.4% 01/10/43 50,638,935 58,366,152 0.18 USD 540,000 MCCORMICK 3.4000% 15/08/27 60,109,716 58,161,979 0.18 USD 510,000 KLA TENCOR 4.125% 01/11/21 60,492,599 57,433,912 0.18 USD 480,000 DIAMOND 1/2 FIN 6.02% 15/06/26 144 56,570,248 57,099,041 0.17
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
24 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 510,000 HUMANA INC 3.85% 01/10/24 59,118,579 56,638,952 0.17 USD 465,000 MIDAMERICAN ENERGY 4.4% 15/10/44 56,897,755 56,221,298 0.17 USD 505,000 AMERICAN INTL GP 3.75% 10/07/25 57,986,896 55,531,938 0.17 USD 460,000 ANHEUSER BUSCH IN 4.7% 01/02/36 54,019,155 55,221,680 0.17 USD 495,000 PLAINS ALL AMER PIP 4.5% 15/12/26 54,451,110 55,191,867 0.17 USD 430,000 REYNOLDS AMERICAN 5.7% 15/08/35 53,324,045 55,021,897 0.17 USD 500,000 TIME WARNER INC 3.875% 15/01/26 55,622,165 54,246,145 0.17 USD 500,000 DAIMLER FINANCE 2.85% 06/01/22 144A 58,604,834 54,071,996 0.17 USD 495,000 ANHEUSER BUSCH IN 1.9% 01/02/19 58,375,084 53,648,709 0.16 USD 495,000 AT&T INC 4.1000% 15/02/28 144A 53,321,652 53,241,436 0.16 USD 470,000 AMERICAN CAMPUS CMT 4.125% 01/07/24 56,921,620 52,490,441 0.16 USD 445,000 WESTERN GAS PARTNERS 5.45% 1/04/44 46,877,132 52,443,679 0.16 USD 490,000 SYNCHRONY FINANC 3.9500% 01/12/27 54,324,836 52,362,525 0.16 USD 480,000 APPLE INC 2.85% 11/05/24 54,075,829 51,574,228 0.16 USD 340,000 BARRICK NA FIN 7.5000% 15/09/38 52,477,534 51,058,863 0.16 USD 460,000 PIONEER NATURAL 3.45% 15/01/21 54,135,561 50,915,089 0.16 USD 450,000 MICROSOFT CORP 3.95% 08/08/56 53,028,888 50,632,683 0.15 USD 470,000 ORACLE CORP 2.9500% 15/11/24 53,481,280 50,551,605 0.15 USD 450,000 INTL PAPER CO 4.3500% 15/08/48 49,750,976 50,106,680 0.15 USD 460,000 WM WRIGLEY JR 2.4% 21/10/18 144A 45,234,471 50,095,341 0.15 USD 450,000 ALABAMA POWER CO 3.85% 01/12/42 39,133,416 49,406,125 0.15 USD 420,000 ALTRIA GROUP INC 4.5% 02/05/43 49,623,721 48,423,567 0.15 USD 460,000 PHILIP MORRIS IN 3.1250% 02/03/28 49,841,952 48,414,615 0.15 USD 400,000 HALLIBURTON CO 4.75% 01/08/43 46,852,906 47,936,705 0.15 USD 405,000 TIME WARNER CABLE 5.875% 15/11/40 45,731,538 47,877,530 0.15 USD 440,000 XCEL ENERGY 2.4% 15/03/21 50,225,164 47,308,156 0.14 USD 445,000 MARKEL CORP 3.5000% 01/11/27 50,455,612 47,083,517 0.14 USD 400,000 HJ HEINZ CO 5.2% 15/07/45 50,080,359 47,033,394 0.14 USD 325,000 REYNOLDS AMERICA 7.0000% 04/08/41 49,021,491 46,870,292 0.14 USD 375,000 ANHEUSER BUSCH IN 4.9% 01/02/46 45,408,601 46,093,772 0.14 USD 385,000 ENTERPRISE PROD 4.85% 15/03/44 46,330,167 45,967,839 0.14 USD 405,000 SOUTHERN CO GAS CAP 4.4% 30/05/47 45,562,543 45,890,743 0.14 USD 420,000 CONTINENTAL RES 4.9% 01/06/44 WI 46,385,097 45,571,284 0.14 USD 400,000 HCA INC 5% 15/03/24 47,263,570 45,304,786 0.14 USD 390,000 NBC UNIVERSAL 4.45% 15/01/43 46,659,985 45,203,493 0.14 USD 425,000 PHILIP MORRIS IN 2.3750% 17/08/22 47,545,933 45,039,244 0.14 USD 405,000 HUMANA INC 3.95% 15/03/27 46,942,649 44,576,000 0.14 USD 315,000 ANADARKO PETRO CORP 6.6% 15/03/46 37,349,776 44,434,949 0.14 USD 395,000 T MOBILE USA 5.125% 15/04/25 45,296,654 44,362,522 0.14 USD 410,000 DAIMLER FINANCE 2.25% 02/03/20 144A 48,264,145 44,205,466 0.14 USD 410,000 CISCO SYSTEMS INC 2.2% 28/02/21 45,200,672 44,085,766 0.13 USD 410,000 MONSANTO CO 3.95% 15/04/45 41,711,398 43,988,632 0.13 USD 400,000 FIRST REPUBLIC BK 4.375% 01/08/46 41,646,752 43,291,404 0.13 USD 400,000 SHERWIN WILLIAMS 3.125% 01/06/24 44,695,950 42,804,310 0.13 USD 365,000 APPLE INC 4.25% 09/02/47 42,721,754 42,671,339 0.13 USD 355,000 WILLIAMS PART LP 5.1% 15/09/45 37,210,097 42,613,874 0.13 USD 355,000 BOARDWALK PIPELINES 5.95% 01/06/26 38,680,700 42,516,062 0.13
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
25 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 365,000 PPL ELECTRIC 3.95% 01/06/47 40,743,516 41,621,157 0.13 USD 345,000 CONCHO RES/MIDLA 4.8750% 01/10/47 41,380,935 40,878,456 0.13 USD 380,000 MICROSOFT CORP 2% 03/11/20 45,848,329 40,878,083 0.13 USD 380,000 SOUTHERN CO 2.95% 01/07/23 41,775,834 40,827,572 0.12 USD 360,000 HCA INC 5.5000% 15/06/47 41,059,509 39,899,103 0.12 USD 335,000 NEWMONT MINING 4.875% 15/03/42 27,890,432 39,740,033 0.12 USD 370,000 NATIONAL RURAL 2.4% 25/04/22 40,335,314 39,488,500 0.12 USD 375,000 MICROSOFT CORP 1.55% 08/08/21 38,367,172 39,399,826 0.12 USD 365,000 ROCKWELL COLLINS INC 3.5% 15/03/27 40,275,071 39,384,735 0.12 USD 330,000 REYNOLDS AMERICAN 6.875% 1/05/20 41,815,931 39,091,978 0.12 USD 315,000 CONSOLIDATED ED 4.625% 01/12/54 36,855,278 38,467,783 0.12 USD 345,000 ENABLE MIDSTREAM PART 4.4% 15/03/27 39,135,610 37,783,123 0.12 USD 325,000 ALLY FINANCIAL INC 5.75% 20/11/25 37,587,688 37,745,195 0.12 USD 360,000 QUALCOMM INC 2.9% 20/05/24 39,972,365 37,572,393 0.11 USD 340,000 ENLINK MIDSTREAM 5.05% 01/04/45 38,618,590 37,055,801 0.11 USD 350,000 APPLE INC 3.0000% 20/06/27 38,400,586 37,036,320 0.11 USD 340,000 TECH DATA CORP 3.7% 15/02/22 38,308,958 36,851,356 0.11 USD 345,000 KRAFT HEINZ 4.375% 01/06/46 37,029,001 36,688,149 0.11 USD 330,000 GENERAL MOTORS FIN 3.95% 13/04/24 38,262,923 36,329,477 0.11 USD 325,000 DOMINION RESOURCES 3.9% 01/10/25 38,874,127 36,268,725 0.11 USD 250,000 HOME DEPOT INC 5.875% 16/12/36 35,432,510 36,083,331 0.11 USD 310,000 NEWELL BRANDS 5% 15/11/23 37,467,044 35,343,912 0.11 USD 285,000 CMS ENERGY CORP 4.875% 01/03/44 34,975,630 35,340,036 0.11 USD 325,000 MARKEL CORP 4.3000% 01/11/47 36,701,885 35,273,570 0.11 USD 275,000 DEVON ENERGY CORP 5.6% 15/07/41 32,685,675 35,262,578 0.11 USD 282,000 CROWN CORK&SEAL 7.375% 15/12/26 23,188,537 35,199,045 0.11 USD 320,000 CELGENE CORP 2.875% 15/08/20 39,608,207 34,952,452 0.11 USD 320,000 GENERAL MOTORS FIN 3.45% 14/01/22 37,088,559 34,936,579 0.11 USD 280,000 MICROSOFT CORP 4.45% 03/11/45 33,693,383 34,504,277 0.11 USD 280,000 WELLS FARGO & CO 4.75% 07/12/46 MTN 33,736,555 33,818,812 0.10 USD 280,000 PFIZER INC 4.4% 15/05/44 33,451,861 33,748,913 0.10 USD 310,000 SOUTHWESTERN PUB 3.7000% 15/08/47 34,152,000 33,389,386 0.10 USD 305,000 FORD MOTOR CREDIT 3.339% 28/03/22 33,710,133 33,086,698 0.10 USD 315,000 PACIFIC GAS&E 3.9500% 01/12/47 144A 34,821,775 33,013,003 0.10 USD 300,000 INGERSOLL RAND GL 2.875% 15/01/19 28,394,370 32,819,320 0.10 USD 290,000 WESTERN GAS PARTNERS 4.65% 01/07/26 29,748,293 32,492,511 0.10 USD 290,000 HALLIBURTON CO 3.8% 15/11/25 33,026,701 32,278,511 0.10 USD 285,000 HOME DEPOT INC 3.9% 15/06/47 31,671,949 31,899,775 0.10 USD 280,000 INTL LEASE FIN CORP 6.25% 15/05/19 25,136,529 31,815,198 0.10 USD 255,000 MICROSOFT CORP 4.5% 06/02/57 32,732,492 31,778,607 0.10 USD 270,000 AT & T INC 5.45% 01/03/47 30,954,347 31,298,104 0.10 USD 262,000 MEDTRONIC INC 4.375% 15/03/35 31,279,442 31,248,011 0.10 USD 290,000 CELGENE CORP 3.4500% 15/11/27 32,750,555 30,844,897 0.09 USD 245,000 EXELON CORP 5.1% 15/06/45 30,194,582 30,661,586 0.09 USD 235,000 AT & T INC 6.375% 01/03/41 30,536,771 30,507,884 0.09 USD 275,000 CCO HLDGS LLC 5.125% 01/05/23 144A 33,099,677 30,492,691 0.09 USD 280,000 MEDTRONICS INC 2.5% 15/03/20 33,244,378 30,465,953 0.09
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
26 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 245,000 ARCH CAPITAL FIN 5.031% 15/12/46 27,947,946 30,348,597 0.09 USD 285,000 BAT CAPITAL C 3.5570% 15/08/27 144A 32,552,803 30,304,564 0.09 USD 275,000 KENTUCKY UTIL 3.3% 01/10/25 32,919,844 29,929,547 0.09 USD 205,000 KERR-MCGEE CORP 7.875% 15/09/31 27,907,522 29,840,242 0.09 USD 250,000 CMS ENERGY CORP 4.7% 31/03/43 23,753,958 29,692,610 0.09 USD 275,000 PACKAGING CORP 3.4000% 15/12/27 31,110,098 29,483,362 0.09 USD 255,000 SABINE PASS LIQU 5.0000% 15/03/27 29,571,854 29,452,808 0.09 USD 260,000 SOUTERN CO 4.25% 01/07/36 29,254,894 29,284,757 0.09 USD 270,000 TIME WARNER INC 2.1% 01/06/19 27,401,517 29,209,128 0.09 USD 270,000 GILEAD SCIENCES 1.8500% 20/09/19 29,809,681 29,146,277 0.09 USD 250,000 GEORGIA POWER CO 4.3% 15/03/42 28,264,877 28,743,276 0.09 USD 200,000 SOUTHERN COPPER 6.75% 16/04/40 23,853,000 28,711,269 0.09 USD 285,000 VIACOM INC 4.375% 15/03/43 28,559,952 28,379,595 0.09 USD 235,000 VIRGINIA ELEC&POWER 4.45% 15/02/44 28,256,565 28,279,429 0.09 USD 250,000 TIME WARNER CABLE 6.75% 01/07/18 30,285,690 27,687,859 0.08 USD 240,000 FORD MOTOR CO 5.291% 08/12/46 27,249,587 27,353,683 0.08 USD 240,000 DISH DBS CORP 6.75% 01/06/21 22,573,429 27,346,034 0.08 USD 250,000 ANDEAVOR LOG LP 3.5000% 01/12/22 28,174,854 27,183,959 0.08 USD 220,000 JP MORGAN CHASE & CO 4.95% 01/06/45 26,435,505 27,064,581 0.08 USD 250,000 ENERGY TRANS PARTNER 4.9% 15/03/35 28,321,070 26,893,856 0.08 USD 245,000 LOUISVILLE GAS&ELEC 3.3% 01/10/25 29,328,589 26,716,846 0.08 USD 241,000 LENNAR CORP 4.5% 30/04/24 26,596,245 26,511,001 0.08 USD 220,000 ABBVIE INC 4.45% 14/05/46 23,909,911 25,459,538 0.08 USD 210,000 HUMANA INC 4.95% 01/10/44 24,861,335 25,409,931 0.08 USD 235,000 BAKER HUGHES 4.0800% 15/12/47 144A 26,356,414 25,265,859 0.08 USD 200,000 FEDEX CORP 5.1% 15/01/44 24,840,894 25,231,339 0.08 USD 240,000 BUCKEYE PARTNERS 3.95% 01/12/26 24,985,922 25,216,776 0.08 USD 225,000 REYNOLDS GRP ISS 5.125% 15/7/23 144 24,312,801 25,132,735 0.08 USD 210,000 MPLX LP 5.2% 01/03/47 23,326,084 25,129,948 0.08 USD 225,000 FIRST DATA CORP 5% 15/01/24 144A 26,005,178 25,116,826 0.08 USD 225,000 ENERGY TRANSFER PART 5.3% 15/04/47 25,977,360 24,681,110 0.08 USD 205,000 DIAMOND 1/2 FIN 7.125% 15/06/24 144 23,328,470 24,375,457 0.07 USD 195,000 PPL ELECTRIC 4.75% 15/07/43 19,603,083 24,343,159 0.07 USD 230,000 AT&T INC 3.4% 15/05/25 25,425,785 24,342,656 0.07 USD 215,000 SOUTHERN CO 4.4% 01/07/46 23,931,983 24,227,444 0.07 USD 175,000 NEWMONT MINING 6.25% 01/10/39 23,032,409 23,877,602 0.07 USD 195,000 AMGEN INC 4.663% 15/06/51 23,772,783 23,085,021 0.07 USD 210,000 CIT GROUP INC 3.875% 19/02/19 21,646,795 23,043,765 0.07 USD 195,000 HJ HEINZ CO 5% 15/07/35 23,697,046 23,017,867 0.07 USD 210,000 KINDER MORGAN INC 3.05% 01/12/19 24,715,036 22,962,948 0.07 USD 170,000 REYNOLDS AMERICAN 5.85% 15/08/45 22,437,198 22,539,371 0.07 USD 195,000 SPRINT CORP 7.875% 15/09/23 20,638,159 22,466,186 0.07 USD 220,000 DUKE ENERGY CORP 2.65% 01/09/26 22,447,652 22,286,617 0.07 USD 210,000 DISCOVERY COMMUN 3.9500% 20/03/28 23,345,007 22,274,239 0.07 USD 195,000 GEORGIA POWER CO 4.3% 15/03/43 21,462,358 22,188,957 0.07 USD 195,000 INTL PAPER CO 4.4% 15/08/47 21,257,295 22,034,498 0.07 USD 155,000 OWENS CORNING INC 7% 01/12/36 20,729,561 21,981,944 0.07
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
27 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 195,000 T-MOBILE USA INC 4% 15/04/22 22,361,639 21,622,090 0.07 USD 190,000 HCA INC 4.75% 01/05/23 17,378,981 21,473,272 0.07 USD 185,000 CHENIERE CORP CH 5.1250% 30/06/27 20,980,943 20,777,384 0.06 USD 170,000 EXXON MOBIL CORP 4.114% 01/03/46 19,221,914 19,994,833 0.06 USD 180,000 AT&T INC 5.15% 15/03/42 20,661,520 19,983,581 0.06 USD 180,000 QEP RESOURCES 5.25% 01/05/23 18,463,247 19,971,089 0.06 USD 175,000 AEP TRANSMISSION 4% 01/12/46 18,772,109 19,844,315 0.06 USD 165,000 CHESAPEAKE ENERGY 8% 15/12/22 WI 22,005,060 19,249,095 0.06 USD 175,000 EXELON CORP 2.85% 15/06/20 21,953,083 19,073,791 0.06 USD 175,000 LEVEL 3 FINANCING 5.375% 15/01/24 18,915,453 19,035,624 0.06 USD 160,000 CVS HEALTH CORP 4.8750% 20/07/35 19,796,696 18,895,278 0.06 USD 160,000 CITIGROUP INC 4.75% 18/05/46 17,224,371 18,868,198 0.06 USD 165,000 HCA INC 5.25% 15/04/25 18,004,798 18,830,192 0.06 USD 165,000 NAVISTAR INTL 6.6250% 01/11/25 144A 19,042,019 18,760,913 0.06 USD 165,000 WMG ACQUISITION 6.75% 15/04/22 144A 18,688,678 18,620,920 0.06 USD 175,000 PEPSICO INC 3.0000% 15/10/27 19,674,549 18,580,083 0.06 USD 170,000 MCDONALD'S CORP 2.1% 07/12/18 20,911,664 18,488,606 0.06 USD 165,000 NEWELL RUBBERMAID INC 3.85% 01/4/23 18,380,260 18,288,077 0.06 USD 160,000 BAT CAPITAL C 4.3900% 15/08/37 144A 17,701,618 17,889,345 0.05 USD 165,000 COX COMMUN IN 3.1500% 15/08/24 144A 18,276,530 17,547,978 0.05 USD 155,000 UNITED TECHNO CORP 4.15% 15/05/45 17,584,840 17,479,532 0.05 USD 155,000 TENET HEALTHCARE 8.125% 1/4/22 17,504,811 17,397,625 0.05 USD 155,000 ANDEAVOR LOG LP 4.2500% 01/12/27 17,491,539 16,957,357 0.05 USD 155,000 DISH DBS CORP 5.875% 15/07/22 12,411,994 16,775,824 0.05 USD 115,000 21ST CENTURY FOX 6.15% 15/02/41 15,181,252 16,474,717 0.05 USD 155,000 GILEAD SCIENCES INC 2.5% 01/09/23 15,797,284 16,422,824 0.05 USD 145,000 MEREDITH CORP 6.8750% 01/02/26 144A 16,185,124 16,146,968 0.05 USD 145,000 CONTINENTAL RES 4.5% 15/04/23 14,935,369 15,969,529 0.05 USD 120,000 UNITED TECHNO CORP 5.4% 01/05/35 15,566,941 15,491,652 0.05 USD 120,000 GENERAL MOTORS 6.25% 02/10/43 15,359,446 15,409,014 0.05 USD 130,000 PHILLIPS 66 PART 4.9% 01/10/46 14,442,373 14,930,284 0.05 USD 135,000 ISTAR INC 5.2500% 15/09/22 14,910,059 14,647,913 0.04 USD 135,000 COMMONWEALTH EDISON 3.7% 01/03/45 16,055,549 14,594,417 0.04 USD 130,000 SABINE PASS LIQ 4.2000% 15/03/28 WI 14,028,693 14,223,982 0.04 USD 120,000 T-MOBILE USA INC 6% 15/04/24 14,289,554 13,876,513 0.04 USD 115,000 DYNEGY INC 8.1250% 30/01/26 144A 12,633,880 13,795,062 0.04 USD 95,000 CISCO SYSTEMS 5.5000% 15/01/40 13,447,390 13,297,308 0.04 USD 120,000 CENTURY COMMUNIT 5.8750% 15/07/25 13,363,541 13,232,478 0.04 USD 115,000 SHERWIN-WILLIAMS 4.5000% 01/06/47 12,977,729 13,201,179 0.04 USD 120,000 CF INDUSTRIES INC 5.15% 15/03/34 12,481,599 13,167,213 0.04 USD 115,000 MONSANTO CO 4.4% 15/07/44 12,549,055 13,146,589 0.04 USD 120,000 UNIVERSAL HOSPITAL 7.625% 15/08/20 11,720,967 13,118,264 0.04 USD 115,000 DOLLAR TREE INC 5.75% 01/03/23 13,922,262 13,072,035 0.04 USD 115,000 BWAY HDGS CO 7.25% 15/04/25 144a 13,052,945 13,056,399 0.04 USD 110,000 CNH INDUS CAP 4.875% 01/04/21 12,446,589 12,548,555 0.04 USD 115,000 SCIENTIFIC GA 5.0000% 15/10/25 144A 12,509,125 12,509,124 0.04 USD 105,000 MIDAMERICAN ENERGY 4.25% 01/05/46 12,591,001 12,477,041 0.04
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
28 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 110,000 SIGNODE IND GRP 6.375% 01/05/22 144 12,307,169 12,443,859 0.04 USD 115,000 CRC ESCROW IS 5.2500% 15/10/25 144A 12,981,731 12,416,682 0.04 USD 110,000 ISTAR FINANCIAL 6.5% 01/07/21 12,361,794 12,354,120 0.04 USD 105,000 MPH ACQUISITION 7.125% 01/06/24 144 11,971,008 12,263,701 0.04 USD 107,000 BARRICK NA FIN 4.4% 30/05/21 13,314,746 12,238,737 0.04 USD 105,000 GTT COMMUNICATI 7.875% 31/12/24 144 12,415,555 12,220,871 0.04 USD 110,000 SUNOCO LP/FIN 4.8750% 15/01/23 144A 12,389,845 12,186,846 0.04 USD 110,000 AT&T INC 5.1500% 14/02/50 12,513,461 12,103,161 0.04 USD 110,000 IRON MOUNTAIN US 5.375% 01/06/26 14 12,030,706 11,965,250 0.04 USD 105,000 CENTENE CORP 4.75% 15/05/22 11,131,886 11,878,230 0.04 USD 100,000 BMC EAST LLC 5.5% 01/10/24 144A 10,737,363 11,258,212 0.03 USD 105,000 GLENCORE FDG 3.0000% 27/10/22 144A 11,831,011 11,226,663 0.03 USD 95,000 EXELON CORP 4.45% 15/04/46 10,539,427 10,882,547 0.03 USD 95,000 L BRANDS 6.875% 01/11/35 11,071,608 10,566,131 0.03 USD 75,000 BARRICK NA FIN LLC 5.75% 01/05/43 9,085,312 10,048,567 0.03 USD 90,000 INGLES MKTS 5.75% 15/06/23 9,206,993 9,924,359 0.03 USD 90,000 IRON MOUNTAIN 4.375% 01/06/21 144A 9,843,305 9,912,121 0.03 USD 84,000 WPX ENERGY INC 7.5% 01/08/20 9,706,682 9,868,068 0.03 USD 85,000 JACK OHIO FIN 6.75% 15/11/21 144A 8,978,428 9,731,283 0.03 USD 85,000 WHITING PETR 6.25% 01/04/23 9,466,473 9,523,251 0.03 USD 85,000 EQUINIX INC 5.375% 01/04/23 7,873,542 9,500,136 0.03 USD 90,000 AHERN RENTALS 7.375% 15/5/23 144A 8,626,106 9,447,108 0.03 USD 80,000 MGM GROWTH/FIN 5.625% 1/05/24 8,778,528 9,295,215 0.03 USD 80,000 ONEOK PARTNERS LP 4.9% 15/03/25 9,692,406 9,286,087 0.03 USD 80,000 PIONEER NATURAL 4.45% 15/01/26 9,807,501 9,246,710 0.03 USD 78,000 CRESCENT COMM 8.875% 15/10/21 144A 8,146,640 9,014,728 0.03 USD 105,000 FRONTIER COMM 11% 15/09/25 12,491,908 8,922,949 0.03 USD 75,000 T-MOBILE USA INC 6.5% 15/01/26 9,024,743 8,841,368 0.03 USD 80,000 STANDARD INDS 4.7500% 15/01/28 144A 9,079,993 8,636,735 0.03 USD 85,000 TENN MERGER 6.375% 01/02/25 144A 9,133,383 8,621,778 0.03 USD 80,000 WYNN LAS VEGAS 5.25% 15/05/27 144A 9,126,996 8,587,786 0.03 USD 75,000 NUSTAR LOGISTICS 5.625% 28/04/27 8,173,128 8,532,990 0.03 USD 73,000 MARATHON PETROL 4.75% 15/09/44 7,895,828 8,412,411 0.03 USD 75,000 AMERICAN EQUITY 5.0000% 15/06/27 8,431,908 8,405,528 0.03 USD 75,000 ICAHN ENTER 6% 01/08/20 8,030,198 8,349,433 0.03 USD 75,000 CREDIT ACCEPTANCE 6.125% 15/02/21 7,852,533 8,270,299 0.03 USD 75,000 BI-LO LLC 9.25% 15/02/19 144A 9,214,052 8,045,950 0.02 USD 70,000 US STEEL CORP 6.8750% 15/08/25 7,713,659 7,994,962 0.02 USD 70,000 TMS INTL CORP 7.2500% 15/08/25 144A 7,708,779 7,994,962 0.02 USD 75,000 RADIATE HOLDCO/FIN 6.625% 15/02/25 8,604,750 7,974,567 0.02 USD 75,000 CONSTELLATION 8.5000% 15/09/25 144A 8,137,527 7,954,172 0.02 USD 70,000 NGL ENRGY PART/ 7.5000% 01/11/23 WI 7,442,163 7,937,855 0.02 USD 65,000 NRG ENERGY 6.625% 15/01/27 WI 6,867,906 7,480,456 0.02 USD 65,000 TREEHOUSE FOODS INC 6% 15/02/24 144 7,670,772 7,335,514 0.02 USD 65,000 SUNOCO LP/FIN 5.5000% 15/02/26 144A 7,321,272 7,218,499 0.02 USD 65,000 SLM CORP 6.125% 25/03/24 MTN 7,113,257 7,211,782 0.02 USD 65,000 ICAHN ENTER/F 6.3750% 15/12/25 144A 7,319,324 7,194,106 0.02
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
29 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 65,000 FREEPORT-MCMORAN 4.55% 14/11/24 6,739,501 7,185,268 0.02 USD 65,000 CROWNROCK LP/ 5.6250% 15/10/25 144A 7,333,622 7,141,078 0.02 USD 60,000 BEAZER HOMES USA 8.75% 15/03/22 WI 6,312,060 7,130,201 0.02 USD 60,000 AK STEEL CORP 7.5% 15/07/23 6,363,001 7,032,303 0.02 USD 60,000 PHILIP MORRIS INTL 4.375% 15/11/41 6,244,667 6,831,248 0.02 USD 60,000 VECTOR GROUP LTD 6.125% 01/02/25 14 6,901,686 6,771,243 0.02 USD 60,000 LAMB WESTON 4.875% 01/11/26 144A 6,610,938 6,657,030 0.02 USD 60,000 HESS INF / FI 5.6250% 15/02/26 144A 6,765,570 6,624,397 0.02 USD 55,000 ALLIANCE RES OP/FIN 7.5% 1/05/25 14 6,178,509 6,476,191 0.02 USD 60,000 JBS USA LLC 5.75% 15/06/25 144A 7,252,194 6,462,605 0.02 USD 55,000 GLP CAP LP 5.375% 15/04/26 6,046,131 6,401,408 0.02 USD 55,000 CREDIT ACCEPT 7.375% 15/03/23 6,531,354 6,251,843 0.02 USD 55,000 MSCI INC 5.25% 15/11/24 144A 6,615,826 6,227,912 0.02 USD 55,000 WILDHORSE RESO 6.8750% 01/02/25 6,255,671 6,192,017 0.02 USD 55,000 GLOBAL PART/GLP 7% 15/06/23 6,822,204 6,177,060 0.02 USD 55,000 WILLIAMS SCOT 7.8750% 15/12/22 144A 6,413,266 6,162,104 0.02 USD 55,000 WHITING PETRO 6.6250% 15/01/26 144A 6,316,466 6,124,712 0.02 USD 55,000 OASIS PETROLEUM 6.5% 01/11/21 5,725,863 6,109,756 0.02 USD 55,000 ACCO BRANDS 5.25% 15/12/24 144A 6,242,852 6,109,756 0.02 USD 55,000 GULFPORT ENERGY 6.3750% 15/05/25 6,461,395 6,102,277 0.02 USD 55,000 CNO FINANCIAL GP 4.5% 30/05/20 6,434,374 6,102,277 0.02 USD 55,000 EXTERRAN PARTNERS 6% 01/10/22 5,715,140 6,072,364 0.02 USD 55,000 MASTEC INC 4.875% 15/03/23 6,303,991 6,072,364 0.02 USD 55,000 UNIT CORP 6.625% 15/05/21 6,026,961 6,049,929 0.02 USD 55,000 SUMMIT MID HDGS 5.75% 15/04/25 6,144,277 6,027,494 0.02 USD 55,000 LEVEL 3 FIN INC 5.125% 01/5/23 6,597,800 5,997,581 0.02 USD 58,808 PINNACLE OP C 9.0000% 15/05/23 144A 2,545,839 5,981,045 0.02 USD 55,000 NABORS INDS I 5.7500% 01/02/25 144A 6,100,050 5,877,929 0.02 USD 70,000 PETSMART INC 5.875% 01/06/25 144A 6,859,661 5,862,972 0.02 USD 52,000 COMMERCIAL METALS 4.875% 15/05/23 4,904,329 5,755,285 0.02 USD 50,000 DIAMOND 1 FIN/2 5.875% 15/06/21 144 5,358,505 5,642,703 0.02 USD 50,000 OASIS PETROLEUM 6.875% 15/01/23 5,038,653 5,601,912 0.02 USD 50,000 UNITED RENTAL NA 4.6250% 15/10/25 5,409,503 5,520,331 0.02 USD 50,000 ULTRA RESOURCES 6.875% 15/04/22 144 5,526,253 5,493,137 0.02 USD 50,000 COMMONWLTH EDISON 3.8% 01/10/42 3,897,049 5,484,860 0.02 USD 50,000 SPRINT NEXTEL CORP 6% 15/11/22 4,072,768 5,418,354 0.02 USD 50,000 DAE FUNDING 5.0000% 01/08/24 144A 5,661,524 5,397,959 0.02 USD 50,000 PHI INC 5.25% 15/03/19 5,150,512 5,397,959 0.02 USD 45,000 MGM RESORTS INTL 6.625% 15/12/21 3,712,052 5,341,532 0.02 USD 45,000 MGM RESORTS INTL 6% 15/03/23 5,340,871 5,286,465 0.02 USD 45,000 TUTOR PERINI 6.875% 01/05/25 144A 4,926,826 5,213,042 0.02 USD 45,000 SPRINT NEXTEL CORP 7% 15/08/20 3,532,049 5,166,159 0.02 USD 45,000 HALCON RES CORP 6.75% 15/02/25 144A 5,037,041 5,151,856 0.02 USD 40,000 CELGENE CORP 5.25% 15/08/43 3,898,854 4,896,258 0.01 USD 40,000 ENERGY TRANSFER EQ 5.875% 15/01/24 4,148,952 4,709,957 0.01 USD 40,000 EP ENERGY/EVER 8% 29/11/24 144A 4,541,810 4,579,427 0.01 USD 40,000 HILL-ROM HDG INC 5.75% 01/09/23 144 5,019,658 4,530,479 0.01
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
30 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 35,000 BLUE CUBE SPINCO 9.75% 15/10/23 4,338,939 4,492,407 0.01 USD 39,000 SPRINT NEXTEL 9% 15/11/18 144A 3,110,260 4,433,125 0.01 USD 40,000 IRB HOLDING C 6.7500% 15/02/26 144A 4,448,600 4,405,387 0.01 USD 40,000 RADIATE HOLDC 6.8750% 15/02/23 144A 4,470,403 4,372,755 0.01 USD 40,000 OLYMPUS MERGE 8.5000% 15/10/25 144A 4,460,303 4,285,735 0.01 USD 40,000 COMCAST CORP 3.15% 01/03/26 4,571,870 4,281,632 0.01 USD 38,000 CARRIZO OIL&GAS INC 7.5% 15/09/20 3,631,215 4,221,286 0.01 USD 35,000 DISH DBS CORP 7.75% 01/07/26 3,766,199 3,911,821 0.01 USD 35,000 DAE FUNDING 4.5000% 01/08/22 144A 3,955,011 3,788,089 0.01 USD 35,000 VALEANT PHARMA 6.75% 15/08/21 144A 3,870,081 3,769,054 0.01 USD 40,000 EP ENER/EVERE 9.3750% 01/05/24 144A 3,352,714 3,687,472 0.01 USD 30,000 NAVIENT CORP 6.625% 26/07/21 3,129,898 3,467,203 0.01 USD 30,000 CENTENE ESC CORP 6.125% 15/2/24 WI 3,561,300 3,467,203 0.01 USD 30,000 EQUINIX INC 5.875% 15/01/26 3,627,932 3,467,203 0.01 USD 30,000 BOYD GAMING CORP 6.875% 15/05/23 3,585,601 3,450,887 0.01 USD 30,000 ABC SUPPLY 5.75% 15/12/23 144A 3,715,786 3,442,729 0.01 USD 30,000 NRG ENERGY 6.25% 01/05/24 WI 3,117,601 3,411,336 0.01 USD 30,000 OASIS PETROLEUM 6.875% 15/03/22 2,988,599 3,361,147 0.01 USD 30,000 CENTENE CORP 5.625% 15/2/21 WI 3,561,300 3,355,045 0.01 USD 30,000 TELEFLEX INC 4.875% 01/06/26 3,264,599 3,324,436 0.01 USD 30,000 CONCHO RES/MIDLA 3.7500% 01/10/27 3,290,681 3,247,707 0.01 USD 30,000 CLEVELAND-CLI 4.8750% 15/01/24 144A 3,356,091 3,246,934 0.01 USD 30,000 AK STEEL CORP 6.3750% 15/10/25 3,326,916 3,222,459 0.01 USD 30,000 DISH DBS CORP 5.875% 15/11/24 3,433,181 3,093,969 0.01 USD 25,000 PARK-OHIO INDUST 6.6250% 15/04/27 2,765,373 2,902,933 0.01 USD 25,000 TENET HEALTHCARE 7.5% 01/01/22 144A 2,726,748 2,877,643 0.01 USD 25,000 SCIENTIFIC GAMES INTL 7% 1/1/22 144 3,000,858 2,868,940 0.01 USD 25,000 HCA INC 5.25% 15/06/26 2,882,091 2,845,146 0.01 USD 25,000 H&E EQUIPMENT 5.6250% 01/09/25 144A 2,920,696 2,821,351 0.01 USD 25,000 ANTERO MIDSTREA 5.3750% 15/09/24 WI 2,536,499 2,800,956 0.01 USD 25,000 LENNAR CORP 4.5% 15/11/19 2,914,498 2,780,697 0.01 USD 25,000 CCO HLDGS LLC/CAP 5.5% 01/05/26 144 2,730,751 2,773,762 0.01 USD 25,000 LENNAR CORP 4.125% 01/12/18 2,271,455 2,746,569 0.01 USD 25,000 JELD-WEN INC 4.6250% 15/12/25 144A 2,838,039 2,719,375 0.01 USD 25,000 ALERIS INTL INC 7.875% 01/11/20 2,822,665 2,716,927 0.01 USD 20,000 HD SUPPLY INC 5.75% 15/04/24 144A 2,256,601 2,327,785 0.01 USD 20,000 MPT OPER PARTNER 6.375% 01/03/24 2,444,107 2,315,385 0.01 USD 20,000 T-MOBILE USA INC 6.5% 15/01/24 2,001,001 2,311,577 0.01 USD 20,000 MSCI INC 5.75% 15/08/25 144A 2,487,398 2,306,030 0.01 USD 20,000 ALERIS INTL INC 9.5% 01/04/21 144A 2,281,411 2,302,875 0.01 USD 20,000 J2 CLOUD LLC/ 6.0000% 15/07/25 144A 2,339,662 2,300,591 0.01 USD 20,000 AK STEEL CORP 7.625% 01/10/21 2,306,321 2,257,081 0.01 USD 20,000 MERCER INTL I 5.5000% 15/01/26 144A 2,243,099 2,202,694 0.01 USD 20,000 UNITED RENTAL NA 4.8750% 15/01/28 2,221,100 2,172,781 0.01 USD 20,000 HILTON DOMESTIC 4.2500% 01/09/24 2,040,600 2,165,449 0.01 USD 20,000 CCO HDG LLC/CAP 5.125% 01/05/27 144 2,283,437 2,126,551 0.01 USD 15,000 NAVIENT CORP 5.875% 25/03/21 1,531,531 1,680,574 0.01
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
31 Principal US Corporate Bond Fund
Statement of Investments (continued) as at January 31, 2018 (expressed in Japanese Yen)
Quantity / Market In % of Ccy Nominal Description Cost Value Net Assets Value(1)
UNITED STATES OF AMERICA (CONTINUED)
STRAIGHT FIXED BOND (CONTINUED) USD 15,000 AK STEEL CORP 7% 15/03/27 1,699,876 1,668,336 0.01 USD 15,000 WASTE PRO USA 5.5000% 15/02/26 144A 1,635,149 1,660,178 0.01 USD 15,000 LAMB WESTON 4.625% 01/11/24 144A 1,571,550 1,656,099 0.01 USD 15,000 AMER WOODMARK 4.8750% 15/03/26 144A 1,631,625 1,639,783 0.01 USD 15,000 OLIN CORP 5.0000% 01/02/30 1,663,650 1,633,664 0.00 USD 15,000 JELD-WEN INC 4.8750% 15/12/27 144A 1,687,350 1,633,664 0.00 USD 15,000 MPT OP PTNR/FINL 5.0000% 15/10/27 1,641,127 1,615,635 0.00 USD 15,000 FRONTIER COMM 8.875% 15/09/20 1,811,849 1,598,992 0.00 USD 10,000 CVS HEALTH CORP 5.125% 20/07/45 1,245,411 1,215,922 0.00 USD 10,000 CCO HDGS LLC 5.75% 15/02/26 144A 1,215,101 1,125,821 0.00 USD 10,000 ENERGY TRANSFER PART 4.05% 15/03/25 1,197,417 1,082,960 0.00 USD 5,000 DOMINION GAS HLDGS 4.8% 1/11/43 492,075 590,226 0.00 USD 5,000 TESORO LOGISTICS 6.25% 15/10/22 545,206 572,026 0.00 USD 5,000 PACIFIC GAS & ELECT 4.45% 15/04/42 412,253 563,623 0.00 USD 5,000 NGL ENRGY/FIN 6.875% 15/10/21 520,741 556,792 0.00 USD 5,000 GLP CAP LP 4.375% 15/04/21 539,150 556,112 0.00
19,017,417,717 18,852,701,873 57.67 UNITS/PFD STOCKS -- 15,000 VERIZON COMM PFD 5.9% 15/02/54 38,388,716 42,552,778 0.13 -- 60,191 PINNACLE AGRICULTURE ENT PFD A-2 9,939,519 3,352,205 0.01
48,328,235 45,904,983 0.14
Total UNITED STATES OF AMERICA 22,347,722,772 22,161,688,856 67.80
Total Investments 31,010,603,711 30,635,850,483 93.72
* Defaulted
(1) Quantity represents a number of units/shares. Nominal value is expressed in security original currency.
The accompanying notes form an integral part of these financial statements.
32 Principal US Corporate Bond Fund
Notes to the Financial Statements as at January 31, 2018
Note 1 - Organisation
Worldview Investment Fund (the “Trust”) was established by a master declaration of trust, dated March 24, 2006 as amended and restated on November 19, 2007 (the “Trust Deed”) made by Global Funds Trust Company (the “Trustee”). Global Funds Trust Company is a trust company duly incorporated, validly existing and licensed to undertake trust business pursuant to the provisions of the Banks and Trust Companies Law (2009 Revision) of the Cayman Islands.
Pursuant to the Trust Deed, the Trustee may establish separate Portfolios of the Trust, each of which will represent undivided interests solely in the assets and liabilities of the relevant separate Portfolio of investments.
Each Portfolio will represent a separate account and will be maintained with separate accounting records. The Trust may, however be treated as one entity. As a result, all the assets of a Portfolio may be available to meet all of the liabilities of the Trust, regardless of the Portfolio to which such assets or liabilities are attributable. In practice, cross class liability will usually only arise where any Portfolio becomes insolvent or exhausts its assets and is unable to meet all of its liabilities. As of the date of this report, the Trust has the following Portfolios: Asia Core Equity Fund -established on January 16, 2007 Europe Core Equity Fund -established on March 20, 2007 Europe Opportunities Fund -established on June 24, 2009 Europe Discovery Fund -established on March 1, 2010 Asia Evolving Fund -established on April 20, 2010 Taiwan Selected Equity Fund -established on August 20, 2010 Euro Strategic Growth Fund -established on October 22, 2010 Nissay US Corporate Bond Fund -established on March 14, 2011 Principal US Corporate Bond Fund -established on September 12, 2011 Nissay European Corporate Bond Fund -established on March 14, 2012 PIMCO Global Corporate Bond Fund -established on December 12, 2012 Post Short Duration High Yield Fund -established on March 18, 2013 US Preferred Securities -established on March 23, 2015 Lazard Global Preferred Listed Infrastructure Fund -established on October 31, 2016 Global Unconstrained Infrastructure Equity Fund -established on February 3, 2017 India Consumption Fund -established on October 6, 2017 The Trustee may establish additional Portfolios at any future time. These financial statements represent Principal US Corporate Bond Fund (the “Portfolio“)
The investment objective of the Portfolio is to provide a return that exceeds the return of the Barclays Capital US Corporate Bond Index (the “Index”) hedged to JPY. The Trustee intends to achieve this objective principally through investments made in accordance with the investment restrictions and guidelines set out below. The Trustee or the Investment Sub-Manager will determine which transactions will be entered into on behalf of the Portfolio
Unitholders should be aware that the Trust is not a Luxembourg Fund, and that therefore it is neither subject to Luxembourg law, nor subject to supervision by any Luxembourg supervisory authority.
Note 2 - Significant Accounting Policies
The financial statements have been prepared in accordance with generally accepted accounting principles in Luxembourg applicable to investment funds and include the following significant accounting policies:
INVESTMENTS IN SECURITIES
(a) securities listed on a stock exchange or traded on any other regulated market are valued at the last available closing price on such exchange or market. If a security is listed or traded on several stock exchanges or markets, the last available closing price on the stock exchange or any other regulated market which constitutes the main market for such securities, is used; (b) securities not listed on any stock exchange or traded on any regulated market, or securities for which the price determined under (a) above is not representative of their fair value, are valued at their last available market price; if there is no such market price, or if such market price is not representative of the securities' fair market value, they are valued prudently and in good faith on the basis of their reasonably foreseeable sale prices; (c) investments may be priced on the basis of quotations from an internationally recognised pricing service;
33 Principal US Corporate Bond Fund
Notes to the Financial Statements as at January 31, 2018 (continued)
Note 2 - Significant Accounting Policies (continued)
INVESTMENTS IN SECURITIES (CONTINUED)
(d) securities or other assets for which market quotations are not readily available are valued at their fair value as determined in good faith in accordance with procedures adopted by the Administrator, with advice from the Trustee and the Investment Sub- Manager of the Portfolio; (e) short term investments that have a remaining maturity of sixty (60) days or less may be valued at (i) market value; or (ii) by amortising the difference between market value and the face amount on the sixty first (61st) day prior to maturity; or (iii) where market value is not available, at amortised cost; (f) cash and other liquid assets are valued at their fair value with interest accrued; (g) futures contracts and options thereon are valued at the most recent available closing quotation on the commodity exchange on which they are traded by the Portfolio; (h) forward contracts are valued at the current cost of covering or offsetting such contract; and (i) in relation to any other positions, the amount which the Administrator determines represents the fair value thereof as determined in accordance with the applicable generally accepted accounting principles or as otherwise determined in good faith by the Administrator.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the trade date. Interest income is recognised on an accrual basis. Dividends are recorded on the ex-dividend date. Realised gains or losses on security transactions are determined on the basis of the average cost of securities sold.
CONVERSION OF FOREIGN CURRENCIES
The Portfolio maintains its accounting records in Japanese Yen (“JPY”) and its financial statements are expressed in this currency. Assets and liabilities expressed in currencies other than JPY are translated into JPY at applicable exchange rates at the year-end. Income and expenses in currencies other than JPY are translated into JPY at appropriate exchange rates ruling at the date of transaction.
Investment transactions in currencies other than JPY are translated into JPY at the exchange rate applicable at the transaction date.
The Portfolio does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realised and unrealised gain or loss from investments.
Currency rates as at January 31, 2018:
1 JPY = 0.00740 EUR 1 JPY = 0.00919 USD
FORWARD FOREIGN EXCHANGE CONTRACTS
Forward foreign exchange contracts are valued at the forward rate applicable at the year-end date for the remaining period until maturity. Gains or losses resulting from forward foreign exchange contracts are recognised in the Statement of Operations. Net unrealised gains are reported as an asset and net unrealised losses are reported as a liability in the Statement of Net Assets.
Note 3 - Trustee fees
The Trustee received an initial set-up fee of JPY 1,000,000 out of the assets of the Portfolio. In addition, the Trustee is paid out of the assets of the Portfolio, an annual fee of JPY 300,000 payable in JPY annually in advance.
All proper out of pocket expenses and disbursements incurred on behalf of the Portfolio may also be reimbursed to the Trustee out of the assets of the Portfolio.
34 Principal US Corporate Bond Fund
Notes to the Financial Statements as at January 31, 2018 (continued)
Note 4 - Custodian fees
The Custodian is entitled to be paid out of the assets of the Portfolio a fee payable in JPY quarterly in arrears (pro-rated for part quarters) of an amount equivalent to 0.02% per annum of the average of the Net Asset Values of the Portfolio on each Valuation Date during such quarter.
All proper out-of-pocket expenses and disbursements incurred on behalf of the Portfolio may also be reimbursed to the Custodian out of the assets of the Portfolio quarterly in arrears.
Note 5 - Administration fees
For its services, the Administrator is entitled to be paid out of the assets of the Portfolio, a fee payable in JPY quarterly in arrears (pro-rated for part quarters) of an amount equivalent to the relevant percentages per annum of the average of the Net Asset Values of the Portfolio on each Valuation Date in each quarter.
0.06% per annum for the first JPY 10 billion 0.04% per annum for JPY 10 billion to JPY 20 billion 0.03% per annum for over JPY 20 billion
All proper out-of-pocket expenses and disbursements incurred on behalf of the Portfolio may also be reimbursed to the Administrator out of the assets of the Portfolio quarterly in arrears.
Note 6 - Investment Manager and Sub-Manager fees
The Trustee, in its capacity as the Investment Manager of the Portfolio, is also entitled to receive out of the assets of the Portfolio, a fee payable in JPY quarterly in arrears of an amount equivalent to 0.02% per annum of the average of the Net Asset Values of the Portfolio on each Valuation Date during such quarter
All proper out of pocket expenses and disbursements incurred on behalf of the Portfolio may also be reimbursed to the Trustee out of the assets of the Portfolio.
Under the Investment Sub-Management Agreement, the Trustee pays the Investment Sub- Manager out of the assets of the Portfolio, a fee of an amount equivalent to the relevant percentages per annum of the average of the Net Asset Values of the Portfolio as of each Valuation Date during such quarter.
0.30% per annum for the first JPY 5 billion 0.25% per annum for JPY 5 billion to JPY 10 billion 0.20% per annum for JPY 10 billion to JPY 50 billion 0.15% per annum for over JPY 50 billion
The Investment Sub-Management Fee, together with relevant out-of-pocket expenses and other disbursements, are paid in JPY quarterly in arrears within 25 Business Days from the last Business Day in that quarter.
Note 7 - Accrued expenses
JPY
Investment Manager and Sub-Manager fees 19,934,113 Administration fees 3,462,726 Custodian fees 1,641,904 Out-of-pocket expenses 410,305 Professional fees 1,112,040 Printing and publication fees 398,844
Accrued expenses 26,959,932
35 Principal US Corporate Bond Fund
Notes to the Financial Statements as at January 31, 2018 (continued)
Note 8 - Distributions
The Trustee may declare annual distributions after the Accounting Date in each year and the Trustee may also declare interim distributions from time to time with semi-annual distributions in respect of the Portfolio.
The amount to be distributed to Unitholders may include, in the determination of the Trustee, all of the income of the Portfolio for the relevant period which is available for distribution after deducting all operating and other revenue expenditure of the Portfolio and accumulated income (if any) together with such net realised and unrealised capital gains forming a part of the capital of the Portfolio as the Trustee may determine (subject, in principle, to cash flow availability).
Distributions will be made in Japanese Yen to the persons in whose name Units of the Portfolio are registered in the Register on the relevant Record Date.
On the payment of distributions, each Unitholder will have the option to re-invest the distribution proceeds by purchasing additional Units of the Portfolio at the then current Net Asset Value of the Portfolio or to receive the distribution proceeds in cash as the Unitholder may decide.
For the year ended January 31, 2018, the Portfolio distributed a total amount of JPY 572,768,997.
Note 9 - Taxation
Under the current laws of the Cayman Islands, there are no income, estate, transfer, sales or other taxes payable by the Portfolio or withholding taxes applicable to the payment by the Portfolio to the Unitholders or to the payment of net asset value upon repurchase of Units.
The Portfolio may be subject to foreign withholding tax on certain interest, dividends and capital gains.
Note 10 - Terms of subscriptions and repurchases
Subsequent Issue of Units After the Initial Closing, Units are offered on a continuous basis to Eligible Investors on any Dealing Day. The issue price of each Unit after the Initial Closing is the Net Asset Value per Unit on the relevant Dealing Day and the minimum purchase amount is JPY 10,000,000.
Applications for the purchase of Units must be received by the Administrator no later than 16:00 Luxembourg time on the relevant Dealing Day or such other period as the Trustee may, in its sole discretion, determine from time to time.
Payment must be received within 4 Business Days from and excluding the relevant Dealing Day or such other period as the Trustee may, in its sole discretion, determine from time to time. The Trustee reserves the right, to decline any order to purchase Units in whole or in part and may cancel any order for which a properly completed application and payment as described above is not timely received.
Redemption of Units Units are redeemable at the option of Unitholders on each Dealing Day. A Unitholder may serve a Redemption Notice.
The minimum redemption amount is one (1) Unit provided that, unless otherwise determined by the Trustee, such Redemption Notice shall be in respect of all the Units held by a Unitholder if the resulting holding of such Unitholder in the Portfolio would have a Net Asset Value of less than JPY 10,000,000.
The Redemption Notice should be received by the Administrator no later than 16:00 Luxembourg time on the relevant Dealing Day or such other time as the Trustee may in its sole discretion determine from time to time.
The redemption price per Unit shall be calculated by dividing the Net Asset Value of the Portfolio as of the relevant Dealing Day by the number of Units in issue on such Dealing Day. No redemption charge is payable.
Remittances in respect of redemptions shall be made by wire transfer in JPY within 7 Business Days from and excluding the relevant Dealing Day.
36 Principal US Corporate Bond Fund
Notes to the Financial Statements as at January 31, 2018 (continued)
Note 11 - Forward foreign exchange contracts
As at January 31, 2018, the Portfolio had the following open forward foreign exchange contracts:
Currency Bought Amount Currency Sold Amount Maturity Unrealised Gain Bought Sold Date in JPY
JPY 11,000,000,000 USD 100,925,116 March 2, 2018 38,281,670 JPY 11,000,000,000 USD 100,927,617 March 2, 2018 38,010,115 JPY 10,891,357,948 USD 99,929,241 March 2, 2018 37,803,999
114,095,784
37