For the third year in a row, Principal Funds received a Lipper Fund Award for the Principal Global Real Estate Securities Fund (Class I: POSIX). The fund was named the best global real estate fund out of 92 funds over the five-year period.

“Our primary focus as managers is to assist investors in reaching their financial goals. Winning this award provides evidence we have accomplished our primary objective,” said Kelly Rush, chief investment officer of global real estate securities at Principal Real Estate Investors and one of the fund’s portfolio managers. “In the past five years, global real estate stocks have experienced a wide range of returns and I am proud of our team’s ability to successfully navigate these dynamic market conditions.”

The nearly $3 billion fund is managed by Principal Real Estate Investors, which sub-advises or manages $57.3 billion in commercial real estate assets1. Simon Hedger and Anthony Kenkel join Rush in managing the fund, applying six decades of real estate investment experience and in-depth coverage of more than 60 metropolitan property markets worldwide.

“Receiving this award for the third time in as many years validates the team-oriented, research-based investment process by Kelly and team,” said Mike Beer, president and CEO of Principal Funds. “The continued success of this fund showcases our global investment management capabilities.”

Lipper, a leading global research firm, presented the awards at a March 31 ceremony in New York City. The Lipper Fund Awards program honors funds that have excelled in delivering consistently strong, risk-adjusted performance relative to peers.

Visit www.principalfunds.com/lipper for more information about the Lipper Fund Award rankings and methodology. For more research, analysis and insights from The Principal®, visit The Principal Knowledge Center and connect with us on Twitter.

About Principal Funds
Principal Funds is a leading provider of mutual funds, with $120.3 billion in assets under management.2 Principal Funds brings expertise in global investment management, asset allocation and retirement leadership to financial professionals and investors. Including its target-risk and target-date offerings, Principal Funds is the fifth largest manager of lifecycle funds in the industry.3 The companies that make up Principal Funds are members of the Principal Financial Group®. For more information, visit www.principalfunds.com.

About the Principal Financial Group
The Principal Financial Group® (The Principal®)4 is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $519.3 billion in assets under management5 and serves some 19.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

Carefully consider a fund’s objectives, risks, charges, and expenses. Contact your financial professional or visit principalfunds.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.

Past performance does not guarantee future results. Investing involves risk, including possible loss of principal. Asset allocation and diversification do not ensure a profit or protect against a loss.

REITS are subject to a real estate industry sensitive to interest rates, general and local economic conditions, property tax rates and other factors. International investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

Class I shares are available only to eligible investors, including various institutional investors and investors in certain mutual fund wrap or asset allocation programs. See the prospectus for eligibility requirements.

Principal Funds are distributed by Principal Funds Distributor, Inc.

1 As of December 31, 2014.
2 As of December 31, 2014. Includes all share classes of the Principal Funds, Inc. and Principal Variable Contracts Funds, Inc.
3 Strategic Insight Mutual Fund Lifecycle Report Q4 2014.
4 “The Principal Financial Group” and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
5 As of Dec. 31, 2014.