Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

JPMorgan Chase & Co 6.75 12/31/2049 137,707,000 $157,330,248 2.67% General Electric Co 5.00 12/31/2049 125,868,000 $132,948,075 2.26% Cooperatieve Rabobank UA 11.00 12/29/2049 101,447,000 $116,410,433 1.98% Centaur Funding Corp 9.08 04/21/2020 100,666 $116,300,688 1.98% Wells Fargo & Co 7.98 12/31/2049 86,100,000 $88,683,000 1.51% Nationwide Financial Services Inc 6.75 5/15/2087 79,015,000 $87,311,575 1.48% Citigroup Inc 6.25 12/31/2049 75,582,000 $84,462,885 1.44% MetLife Inc 10.75 8/1/2069 50,223,000 $84,374,640 1.43% Wells Fargo & Co 7.50 61,082 $81,300,142 1.38% Bank of New York Mellon Corp/The 4.95 12/31/2049 75,100,000 $77,728,500 1.32% Credit Suisse Group AG 7.50 12/31/2049 69,040,000 $77,663,372 1.32% Liberty Mutual Group Inc 7.80 3/7/2087 61,373,000 $77,560,129 1.32% XLIT Ltd 4.42 76,419 $73,362,240 1.25% Barclays PLC 8.25 12/31/2049 68,658,000 $72,799,451 1.24% Inc 5.63 6/15/2043 66,965,000 $72,489,613 1.23% Bank of America Corp 6.50 12/31/2049 61,285,000 $69,098,838 1.17% Lloyds Banking Group PLC 6.66 1/29/2049 60,185,000 $68,836,594 1.17% Societe Generale SA 8.25 12/31/2049 64,750,000 $68,624,381 1.17% Voya Financial Inc 5.65 5/15/2053 64,126,000 $67,973,560 1.16% JPMorgan Chase & Co 7.90 4/29/2049 65,637,000 $67,606,110 1.15% Sompo Japan Nipponkoa Inc 5.33 3/28/2073 60,300,000 $65,651,625 1.12% Enterprise Products Operating LLC 7.03 1/15/2068 62,775,000 $63,685,238 1.08% MetLife Inc 9.25 4/8/2068 41,075,000 $60,996,375 1.04% Goldman Sachs Financial Square Funds - Government 0.90 12/31/2049 58,640,517 $58,640,517 1.00% Fund Lloyds Bank PLC 12.00 12/29/2049 39,800,000 $53,929,000 0.92% Lloyds Banking Group PLC 7.50 12/31/2049 47,888,000 $53,404,698 0.91% Wells Fargo & Co 5.87 12/31/2049 47,800,000 $53,058,000 0.90% HSBC Capital Funding Dollar 1 LP 10.18 12/29/2049 32,900,000 $52,331,398 0.89% BNP Paribas SA 7.63 12/31/2049 46,600,000 $50,968,750 0.87% Citigroup Inc 6.13 12/31/2049 47,300,000 $50,639,380 0.86% Lincoln National Corp 3.35 4/20/2067 54,947,000 $50,001,770 0.85% PNC Financial Services Group Inc/The 6.75 7/29/2049 44,035,000 $49,869,638 0.85% PNC Financial Services Group Inc/The 6.13 1,730,132 $49,412,570 0.84% Royal Bank of Scotland Group PLC 7.50 12/31/2049 45,281,000 $47,771,455 0.81% Credit Agricole SA 8.38 12/31/2049 42,909,000 $47,590,458 0.81% Catlin Insurance Co Ltd 4.28 7/29/2049 47,586,000 $45,920,490 0.78% Bank of America Corp 6.30 12/31/2049 40,055,000 $45,111,944 0.77% Nordea Bank AB 6.13 12/31/2049 42,131,000 $44,764,188 0.76% BNSF Funding Trust I 6.61 12/15/2055 38,509,000 $44,285,350 0.75% Provident Financing Trust I 7.41 3/15/2038 37,750,000 $43,318,125 0.74% HSBC Holdings PLC 6.87 12/31/2049 39,600,000 $43,084,800 0.73% Svenska Handelsbanken AB 5.25 12/31/2049 42,000,000 $42,997,500 0.73% PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

Standard Chartered PLC 7.01 7/29/2049 36,300,000 $41,926,500 0.71% Goldman Sachs Group Inc/The 5.70 12/31/2049 39,795,000 $41,187,825 0.70% Enterprise Products Operating LLC 5.25 8/16/2077 40,800,000 $40,830,600 0.69% AIG Life Holdings Inc 8.50 7/1/2030 30,200,000 $40,468,000 0.69% Emera Inc 6.75 6/15/2076 35,200,000 $40,162,967 0.68% Lloyds Banking Group PLC 6.41 1/29/2049 32,174,000 $36,477,273 0.62% State Street Corp 5.25 1,425,192 $36,185,625 0.61% Legal & General Group PLC 5.25 3/21/2047 34,148,000 $36,065,547 0.61% Royal Bank of Scotland Group PLC 7.65 8/29/2049 27,915,000 $35,103,113 0.60% Credit Suisse AG 6.50 8/8/2023 29,754,000 $33,622,020 0.57% Lloyds Bank PLC 12.00 12/29/2049 24,750,000 $33,536,250 0.57% WR Berkley Corp 5.63 04/30/2053 1,262,728 $33,007,710 0.56% Charles Schwab Corp/The 7.00 2/28/2049 28,358,000 $32,505,358 0.55% Hartford Financial Services Group Inc/The 7.88 04/15/2042 1,044,739 $31,969,013 0.54% CoBank ACB 6.25 296,500 $31,845,968 0.54% SA 6.38 12/29/2049 27,793,000 $31,701,252 0.54% Telephone & Data Systems Inc 7.00 03/15/2060 1,198,224 $30,770,392 0.52% Everest Holdings Inc 3.70 5/1/2067 32,820,000 $30,686,700 0.52% Stanley Black & Decker Inc 5.75 07/25/2052 1,189,954 $30,284,329 0.51% Insurance Co 5.10 10/16/2044 27,300,000 $29,497,650 0.50% Huntington Bancshares Inc/OH 6.25 1,050,000 $29,242,500 0.50% Transcanada Trust 5.87 8/15/2076 26,800,000 $29,212,000 0.50% Banco Bilbao Vizcaya Argentaria SA 9.00 12/31/2049 28,000,000 $29,050,000 0.49% BHP Billiton Finance USA Ltd 6.75 10/19/2075 25,042,000 $29,048,720 0.49% Liberty Mutual Insurance Co 7.70 10/15/2097 20,025,000 $28,567,238 0.49% Farm Credit Bank of Texas 6.75 258,000 $28,138,125 0.48% ING Groep NV 6.50 12/31/2049 26,000,000 $27,840,800 0.47% Aflac Inc 5.50 09/15/2052 1,085,462 $27,364,497 0.47% Dairy Farmers of America Inc 7.88 232,500 $26,170,781 0.44% Citigroup Inc 5.95 12/29/2049 24,100,000 $25,967,750 0.44% MetLife Capital Trust IV 7.88 12/15/2067 19,020,000 $25,724,550 0.44% Reinsurance Group of America Inc 3.91 12/15/2065 26,423,000 $25,366,080 0.43% Verizon Communications Inc 5.90 02/15/2054 942,517 $25,287,731 0.43% Aegon NV 6.38 973,233 $25,167,805 0.43% Barclays Bank PLC 7.75 4/10/2023 24,200,000 $24,926,000 0.42% JPMorgan Chase & Co 6.13 12/31/2049 22,000,000 $24,172,500 0.41% Centaur Funding Corp 0.00 04/21/2020 26,500 $23,560,156 0.40% Dominion Energy Inc 5.25 07/30/2076 897,421 $23,117,565 0.39% KeyCorp 6.13 780,000 $22,869,600 0.39% National Rural Utilities Cooperative Finance Corp 5.25 4/20/2046 21,300,000 $22,752,188 0.39% US Bancorp 5.12 12/31/2049 21,400,000 $22,684,000 0.39% ACE Capital Trust II 9.70 4/1/2030 14,970,000 $22,642,125 0.38%

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

Prudential Financial Inc 5.88 9/15/2042 20,401,000 $22,543,105 0.38% NextEra Energy Capital Holdings Inc 3.37 10/1/2066 23,474,000 $22,358,985 0.38% PLC 8.25 4/29/2049 22,104,000 $22,325,040 0.38% Qwest Corp 6.13 06/01/2053 885,400 $22,258,956 0.38% Vornado Realty Trust 5.70 830,577 $21,237,854 0.36% Goldman Sachs Group Inc/The 5.50 774,944 $20,869,242 0.35% Capital One Financial Corp 5.55 12/31/2049 19,625,000 $20,482,613 0.35% ING Groep NV 6.38 784,468 $20,262,808 0.34% AXA SA 8.60 12/15/2030 13,565,000 $19,618,381 0.33% UBS Group AG 6.87 12/31/2049 18,078,000 $19,378,712 0.33% Societe Generale SA 8.00 12/31/2049 16,800,000 $19,320,000 0.33% Standard Chartered PLC 7.50 12/31/2049 17,700,000 $19,165,560 0.33% HSBC Holdings PLC 6.20 721,643 $18,863,748 0.32% Skandinaviska Enskilda Banken AB 5.75 12/31/2049 18,100,000 $18,768,795 0.32% M&T Bank Corp 6.38 17,852 $18,655,340 0.32% Demeter Investments BV for Ltd 5.63 8/15/2052 16,800,000 $18,168,074 0.31% Koninklijke KPN NV 7.00 3/28/2073 16,000,000 $18,140,000 0.31% CoBank ACB 6.25 12/31/2049 16,400,000 $18,053,694 0.31% Arch Capital Group Ltd 6.75 690,877 $17,845,353 0.30% Sumitomo Life Insurance Co 6.50 9/20/2073 15,500,000 $17,832,750 0.30% Bank of New York Mellon Corp/The 4.62 12/31/2049 17,415,000 $17,632,688 0.30% Kimco Realty Corp 6.00 679,411 $17,195,892 0.29% RenaissanceRe Holdings Ltd 5.38 654,975 $16,859,057 0.29% Reinsurance Group of America Inc 6.20 09/15/2042 577,300 $16,770,565 0.29% NextEra Energy Capital Holdings Inc 5.13 11/15/2072 662,215 $16,767,284 0.28% UBS Group AG 6.88 12/31/2049 15,233,000 $16,699,176 0.28% M&T Bank Corp 5.12 12/31/2049 15,500,000 $16,294,375 0.28% BNP Paribas SA 7.20 6/29/2049 13,800,000 $16,120,056 0.27% Societe Generale SA 7.88 12/31/2049 14,000,000 $15,697,500 0.27% Public Storage 6.00 580,214 $15,549,735 0.26% Aquarius & Investments Plc for Swiss Reinsurance Co Ltd 6.37 9/1/2024 14,600,000 $15,422,856 0.26% JPMorgan Chase & Co 5.30 12/31/2049 14,800,000 $15,300,240 0.26% Dai-ichi Life Insurance Co Ltd/The 7.25 12/29/2049 13,250,000 $15,187,813 0.26% Societe Generale SA 7.38 12/31/2049 14,000,000 $15,137,500 0.26% Kimco Realty Corp 5.50 590,922 $15,133,512 0.26% PPL Capital Funding Inc 3.96 3/30/2067 15,375,000 $15,105,938 0.26% Koninklijke KPN NV 7.00 3/28/2073 13,126,000 $14,881,603 0.25% Corp/The 6.50 5/15/2067 12,505,000 $14,755,900 0.25% Allstate Corp/The 5.10 01/15/2053 540,300 $14,615,115 0.25% Barclays PLC 6.63 12/31/2049 14,178,000 $14,462,921 0.25% Citigroup Inc 6.88 493,542 $14,283,105 0.24% KeyCorp 5.00 12/31/2049 13,800,000 $14,214,000 0.24%

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

PS Business Parks Inc 5.75 534,494 $13,512,008 0.23% Capital One Financial Corp 6.00 532,627 $13,454,158 0.23% UBS Group AG 7.00 12/31/2049 12,000,000 $13,391,352 0.23% XLIT Ltd 3.76 12/31/2049 14,350,000 $13,390,703 0.23% Qwest Corp 7.00 07/01/2052 520,255 $13,250,895 0.23% Credit Agricole SA 8.13 12/31/2049 11,050,000 $13,094,250 0.22% Stanley Black & Decker Inc 5.75 12/15/2053 12,250,000 $12,801,250 0.22% NextEra Energy Capital Holdings Inc 5.00 01/15/2073 491,093 $12,493,406 0.21% Liberty Mutual Group Inc 4.15 3/7/2067 12,738,000 $12,483,240 0.21% MetLife Inc 6.40 12/15/2066 10,770,000 $12,412,425 0.21% Mitsui Sumitomo Insurance Co Ltd 7.00 3/15/2072 10,700,000 $12,345,125 0.21% Interstate Power & Light Co 5.10 485,100 $12,311,838 0.21% Lincoln National Corp 3.67 5/17/2066 13,109,000 $12,223,581 0.21% DDR Corp 6.38 460,752 $12,182,283 0.21% Comcast Corp 5.00 12/15/2061 474,056 $12,078,947 0.21% Standard Chartered PLC 7.75 12/31/2049 11,000,000 $11,990,000 0.20% Aspen Insurance Holdings Ltd 5.95 414,060 $11,987,037 0.20% M&T Bank Corp 6.38 11,380 $11,892,100 0.20% Torchmark Corp 5.88 12/15/2052 468,309 $11,852,901 0.20% UBS AG/Stamford CT 7.63 8/17/2022 10,000,000 $11,850,000 0.20% Prologis Inc 8.54 167,700 $11,235,900 0.19% Meiji Yasuda Life Insurance Co 5.20 10/20/2045 10,000,000 $10,887,500 0.19% Royal Bank of Scotland Group PLC 8.00 12/31/2049 9,825,000 $10,878,044 0.18% SCE Trust VI 5.00 421,222 $10,800,132 0.18% Hartford Financial Services Group Inc/The 3.44 2/12/2067 10,885,000 $10,640,088 0.18% Morgan Stanley 5.55 12/31/2049 10,000,000 $10,412,400 0.18% Allstate Corp/The 6.63 380,000 $10,275,200 0.17% SunTrust Capital I 1.99 5/15/2027 10,900,000 $10,246,000 0.17% American International Group Inc 8.18 5/15/2068 7,500,000 $10,200,000 0.17% Georgia Power Co 6.50 97,900 $9,948,598 0.17% Royal Bank of Scotland Group PLC 5.75 387,329 $9,768,437 0.17% Credit Suisse Group AG 6.25 12/31/2049 9,100,000 $9,646,000 0.16% Dairy Farmers of America Inc 7.13 12/31/2049 8,700,000 $9,635,250 0.16% PS Business Parks Inc 5.70 377,419 $9,624,185 0.16% Morgan Stanley 5.85 347,500 $9,476,325 0.16% State Street Corp 6.00 349,700 $9,438,403 0.16% Duke Energy Corp 5.13 01/15/2073 362,408 $9,281,269 0.16% Barclays Bank PLC 7.63 11/21/2022 8,000,000 $9,190,000 0.16% Allstate Corp/The 5.75 8/15/2053 8,254,000 $9,058,765 0.15% Credit Agricole SA 7.88 12/31/2049 8,000,000 $8,980,000 0.15% Cooperatieve Rabobank UA 11.00 12/29/2049 7,750,000 $8,893,125 0.15% Huntington Bancshares Inc/OH 5.88 326,087 $8,494,566 0.14%

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

Protective Life Corp 6.25 05/15/2042 335,151 $8,415,642 0.14% Great-West Life & Annuity Insurance Capital LP 6.63 11/15/2034 7,000,000 $8,376,419 0.14% Countrywide Capital III 8.05 6/15/2027 6,312,000 $8,238,016 0.14% Royal Bank of Scotland Group PLC 4.80 4/5/2026 7,500,000 $8,028,544 0.14% TransCanada PipeLines Ltd 3.53 5/15/2067 8,461,000 $7,995,645 0.14% DTE Energy Co 5.25 12/01/2062 313,300 $7,870,096 0.13% Citizens Financial Group Inc 5.50 12/31/2049 7,500,000 $7,828,125 0.13% General Electric Co 4.88 01/29/2053 299,666 $7,635,490 0.13% M&T Bank Corp 6.45 12/31/2049 6,615,000 $7,425,338 0.13% HBOS Capital Funding LP 6.85 3/29/2049 7,000,000 $7,154,700 0.12% Arch Capital Group Ltd 5.25 283,500 $7,013,790 0.12% CoBank ACB 6.20 65,000 $6,989,535 0.12% Wells Fargo & Co 6.63 236,676 $6,799,701 0.12% AgriBank FCB 6.88 61,700 $6,792,787 0.12% Credit Suisse AG 6.50 8/8/2023 6,000,000 $6,780,000 0.12% American Financial Group Inc/OH 6.25 09/30/2054 250,786 $6,766,206 0.11% State Street Corp 5.90 241,300 $6,763,639 0.11% Qwest Corp 6.88 10/01/2054 258,100 $6,733,829 0.11% BPCE SA 5.70 10/22/2023 6,000,000 $6,683,172 0.11% Corestates Capital III 1.88 2/15/2027 7,000,000 $6,597,500 0.11% Digital Realty Trust Inc 7.38 239,911 $6,515,983 0.11% Qwest Corp 7.00 04/01/2052 253,178 $6,450,975 0.11% Qwest Corp 7.50 09/15/2051 249,652 $6,441,022 0.11% Public Storage 5.88 237,401 $6,400,331 0.11% Nordea Bank AB 5.50 12/31/2049 6,000,000 $6,192,000 0.11% Cullen/Frost Bankers Inc 5.38 241,889 $6,059,319 0.10% Entergy Arkansas Inc 4.90 12/01/2052 241,096 $6,056,332 0.10% Hartford Financial Services Group Inc/The 8.13 6/15/2068 5,772,000 $6,014,424 0.10% Credit Agricole SA 8.13 12/31/2049 5,000,000 $5,925,000 0.10% Corp 8.21 1/1/2027 4,500,000 $5,906,250 0.10% Entergy Louisiana LLC 5.25 07/01/2052 230,055 $5,818,091 0.10% TCF Financial Corp 7.50 229,278 $5,789,270 0.10% US Bancorp 6.50 197,845 $5,763,225 0.10% Public Storage 5.75 222,900 $5,641,599 0.10% Digital Realty Trust Inc 6.35 205,498 $5,552,556 0.09% Swedbank AB 6.00 12/31/2049 5,200,000 $5,499,000 0.09% Telephone & Data Systems Inc 6.63 03/31/2045 210,414 $5,496,014 0.09% Demeter Investments BV for Swiss Re Ltd 5.75 8/15/2050 5,000,000 $5,462,500 0.09% Citigroup Inc 5.95 12/31/2049 5,000,000 $5,400,000 0.09% Nippon Life Insurance Co 4.70 1/20/2046 5,000,000 $5,275,000 0.09% Bank of America Corp 6.63 199,813 $5,181,151 0.09% Wells Fargo & Co 5.63 195,171 $5,068,591 0.09%

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

Ventas Realty LP / Ventas Capital Corp 5.45 03/15/2043 198,708 $5,039,235 0.09% Valley National Bancorp 6.25 172,200 $4,967,970 0.08% First Union Capital II 7.95 11/15/2029 3,700,000 $4,958,876 0.08% Vornado Realty Trust 5.40 190,622 $4,906,610 0.08% Allstate Corp/The 6.25 181,500 $4,858,755 0.08% Enel SpA 8.75 9/24/2073 4,000,000 $4,835,000 0.08% PS Business Parks Inc 6.00 188,128 $4,782,214 0.08% SunTrust Banks Inc 5.63 12/31/2049 4,400,000 $4,600,200 0.08% Public Storage 5.05 180,905 $4,549,761 0.08% Northern Trust Corp 4.60 12/31/2049 4,400,000 $4,510,000 0.08% Australia & New Zealand Banking Group Ltd/United 6.75 12/31/2049 4,000,000 $4,472,676 0.08% Kingdom RenaissanceRe Holdings Ltd 6.08 172,247 $4,414,691 0.08% NextEra Energy Capital Holdings Inc 7.30 9/1/2067 4,350,000 $4,371,750 0.07% Barclays Bank PLC 10.18 6/12/2021 3,460,000 $4,326,449 0.07% NextEra Energy Capital Holdings Inc 5.63 06/15/2072 169,312 $4,312,377 0.07% KeyCorp Capital III 7.75 7/15/2029 3,500,000 $4,200,000 0.07% Entergy Louisiana LLC 4.70 06/01/2063 165,100 $4,115,943 0.07% Senior Housing Properties Trust 6.25 02/01/2046 150,000 $4,048,500 0.07% Transcanada Trust 5.63 5/20/2075 3,800,000 $4,028,000 0.07% Charles Schwab Corp/The 6.00 143,663 $3,942,113 0.07% Axis Capital Holdings Ltd 5.50 154,159 $3,912,555 0.07% BB&T Corp 5.63 144,300 $3,821,064 0.06% Barclays Bank PLC 10.18 6/12/2021 3,000,000 $3,751,257 0.06% Morgan Stanley 7.13 126,282 $3,710,165 0.06% Public Storage 6.38 131,181 $3,555,005 0.06% Citigroup Capital III 7.63 12/1/2036 2,700,000 $3,526,718 0.06% HSBC Holdings PLC 8.00 130,027 $3,523,732 0.06% Bank of New York Mellon Corp/The 5.20 139,534 $3,519,047 0.06% Wells Fargo & Co 5.85 125,027 $3,399,484 0.06% Credit Suisse Group AG 7.50 12/31/2049 3,000,000 $3,374,712 0.06% Royal Bank of Scotland Group PLC 8.62 12/29/2049 3,000,000 $3,322,500 0.06% Senior Housing Properties Trust 5.63 08/01/2042 113,931 $2,861,947 0.05% Southern Co/The 5.25 10/01/2076 111,000 $2,858,250 0.05% NB Capital Trust III 1.85 1/15/2027 3,000,000 $2,831,250 0.05% NTC Capital I 1.82 1/15/2027 3,000,000 $2,805,000 0.05% Aegon NV 6.50 107,807 $2,800,826 0.05% Digital Realty Trust Inc 5.88 97,818 $2,517,835 0.04% Integrys Holding Inc 6.00 08/01/2073 87,600 $2,448,420 0.04% Alabama Power Co 6.45 89,000 $2,327,350 0.04% 6.75 86,967 $2,302,886 0.04% General Electric Co 4.88 10/15/2052 80,187 $2,036,750 0.03% United States Cellular Corp 6.95 05/15/2060 75,623 $1,973,004 0.03% PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

SCHEDULE OF INVESTMENTS

COUPON MATURITY SHARES/ PAR MARKET % TOTAL NET ISSUER RATE DATE VALUE VALUE ASSETS

Astoria Financial Corp 6.50 74,851 $1,930,407 0.03% Depository Trust & Clearing Corp/The 4.88 12/31/2049 1,850,000 $1,924,000 0.03% Nordea Bank AB 6.13 12/31/2049 1,800,000 $1,912,500 0.03% NextEra Energy Capital Holdings Inc 3.37 6/15/2067 2,000,000 $1,905,000 0.03% UBS Group AG 7.13 12/31/2049 1,757,000 $1,866,813 0.03% Royal Bank of Scotland Group PLC 7.64 3/29/2049 1,900,000 $1,824,950 0.03% Vornado Realty Trust 6.63 71,610 $1,823,191 0.03% Public Storage 5.20 70,407 $1,786,930 0.03% WR Berkley Corp 5.75 06/01/2056 66,429 $1,746,418 0.03% Great-West Life & Annuity Insurance Capital LP II 3.85 5/16/2046 1,750,000 $1,723,750 0.03% Credit Suisse Group AG 6.25 12/31/2049 1,475,000 $1,563,500 0.03% National Retail Properties Inc 5.20 60,000 $1,486,200 0.03% ING Groep NV 6.13 52,468 $1,376,236 0.02% MMI Capital Trust I 7.63 12/15/2027 1,073,000 $1,353,286 0.02% USB Realty Corp 2.45 12/29/2049 1,500,000 $1,329,375 0.02% Dairy Farmers of America Inc 7.88 12,000 $1,261,876 0.02% People's United Financial Inc 5.63 46,852 $1,258,445 0.02% Nordea Bank AB 5.50 12/31/2049 1,200,000 $1,238,400 0.02% Merrill Lynch Capital Trust I 6.45 12/15/2066 42,437 $1,109,728 0.02% Prudential Financial Inc 8.88 6/15/2068 800,000 $840,160 0.01% CoBank ACB 6.13 8,000 $801,500 0.01% Entergy Louisiana LLC 4.88 09/01/2066 25,000 $622,500 0.01% Chubb Corp/The 3.55 4/15/2037 565,000 $562,175 0.01% Entergy New Orleans Inc 5.50 04/01/2066 20,000 $529,200 0.01% Aegon NV 4.00 18,974 $473,401 0.01% Entergy Texas Inc 5.63 06/01/2064 15,618 $409,035 0.01% Public Storage 4.90 16,000 $396,800 0.01% NextEra Energy Capital Holdings Inc 5.70 03/01/2072 13,164 $333,181 0.01% DDR Corp 6.25 12,487 $318,419 0.01% Charles Schwab Corp/The 6.00 12,535 $316,759 0.01% Protective Life Corp 6.00 09/01/2042 10,311 $257,904 0.00% Citigroup Inc 6.88 9,618 $257,859 0.00% Entergy Arkansas Inc 4.88 09/01/2066 10,000 $249,900 0.00% Axis Capital Holdings Ltd 5.50 9,287 $234,961 0.00% Citigroup Inc 5.90 12/29/2049 200,000 $215,500 0.00% Prudential PLC 6.50 8,061 $213,294 0.00% Properties Inc 5.25 7,284 $190,112 0.00% Kimco Realty Corp 5.63% 5.63 6,000 $151,980 0.00% BNP Paribas SA 7.37 12/31/2049 100,000 $112,875 0.00% Public Storage 4.95 4,000 $99,960 0.00% Entergy New Orleans Inc 5.00 12/01/2052 3,299 $85,362 0.00% Public Storage 5.15 2,000 $50,680 0.00%

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

Total Market Value $ 5,805,610,267 98.67%

Cash 78,357,485 1.33%

Total Net Assets $ 5,883,967,752 100.00%

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report. Preferred Securities Separate Account As of August 31, 2017

The schedule of investments listed below is for the Institutional class shares of the Principal Funds, Inc. Preferred Securities Fund, in which this Separate Account solely invests.

While the underlying securities of this investment option may be guaranteed by the U.S. government as to timely payment of principal and interest, this investment option is not guaranteed.

Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of the bond investment options nor their yields are guaranteed by the U.S. government.

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

This Separate Account invests solely in the Institutional class shares of the Principal Funds. All voting rights associated with ownership of shares in the mutual fund are the rights of the Separate Account, not of contract holders investing in the Separate Account. For further information on the underlying mutual fund, see the prospectus of the fund.

Separate Accounts are available through a group annuity contract with Principal Life Insurance Company. Insurance products and plan administrative, if applicable, services are provided by Principal Life Insurance Company, a member of Principal Financial Group, Des Moines, IA 50392. See the fact sheet for the full name of the Separate Account. Certain investment options may not be available in all states or U.S. commonwealths. Principal Life Insurance Company reserves the right to defer payments or transfers from Principal Life Separate Accounts as described in the group annuity contracts providing access to the Separate Accounts or as required by applicable law. Such deferment will be based on factors that may include situations such as: unstable or disorderly financial markets; investment conditions which do not allow for orderly investment transactions; or investment, liquidity, and other risks inherent in real estate (such as those associated with general and local economic conditions). If you elect to allocate funds to a Separate Account, you may not be able to immediately withdraw them.

Before directing retirement funds to a separate account, investors should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact us at 1-800-547-7754 or by visiting principal.com.

An investment option's unit value and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.

Information is current as of the creation of this piece. Keep in mind that portfolio holdings are subject to risk.

PQ 4787 Not FDIC Insured 8-17 May Lose Value, Not a Deposit, No Bank Guarantee Not Insured by any FeTruederal Government Agency

Please note that coupon rates are not available for all securities displayed on this report.